Document:

Exhibit 10.4

 

EXECUTION VERSION

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT dated as of July 30, 2015 (this “Amendment”), is entered into among MATSON, INC. (the “Borrower”), the Lenders party hereto and BANK OF AMERICA, N.A., as Agent (in such capacity, the “Agent”).  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Credit Agreement.

 

RECITALS

 

A.                                    The Borrower, the Lenders and the Agent entered into that certain Credit Agreement dated as of June 4, 2012 (as amended and modified from time to time, the “Credit Agreement”).

 

B.                                    The parties hereto have agreed to amend the Credit Agreement as provided herein.

 

C.                                    In consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows.

 

AGREEMENT

 

1.                                      Amendments.

 

(a)                                 Section 1.01.

 

(i)                                     The following definitions are hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order to read as follows:

 

“Collateral” means a collective reference to all assets with respect to which Liens in favor of the Collateral Agent are purported to be granted pursuant to and in accordance with the terms of the applicable Collateral Documents.

 

“Collateral Agent” means Bank of America in its capacity as collateral agent under any of the Collateral Documents or any successor collateral agent.

 

“Collateral Documents” means a collective reference to the applicable Security Agreement or Security Agreements.

 

“Collateral Election” has the meaning set forth in Section 6.09.

 

“Consolidated Net Leverage Ratio” means, as at any time of determination thereof, the ratio of (i) the amount of Net Debt of the Borrower and Subsidiaries on a consolidated basis as of such time to (ii) Consolidated EBITDA for the most recently completed four fiscal quarters.

 

“Convertible Notes Indenture” shall mean that certain Indenture, dated as of October 5, 2011, between Matson Alaska, as issuer, and U.S. Bank National Association, as trustee and collateral agent, governing the Horizon Notes, and all related ancillary and security documents, as such indenture and such ancillary and security documents may be amended, supplemented, modified, renewed, replaced and/or restated from time to time so long as the amount of the Horizon Notes is not increased and the tenor is not extended.

 

 

“Designated Jurisdiction” means any country or territory to the extent that such country or territory itself is the subject of any Sanction, which countries or territories are, as of the First Amendment Effective Date, limited to Crimea, Cuba, Iran, North Korea, Sudan and Syria.

 

“First Amendment Effective Date” means July 30, 2015.

 

“Horizon Acquisition” means the acquisition contemplated by the Horizon Acquisition Agreement, including without limitation the merger of a Subsidiary of Matson Navigation with and into Matson Alaska, with Matson Alaska surviving such merger and becoming a wholly owned subsidiary of Matson Navigation, and all ancillary and related transactions with respect thereto.

 

“Horizon Acquisition Agreement” means the Agreement and Plan of Merger, dated as of November 11, 2014, by and among Matson Navigation, Hogan Acquisition Inc., a wholly owned subsidiary of Matson Navigation and Matson Alaska, as amended and supplemented from time to time.

 

“Horizon Notes” means the 6.0% Series A Convertible Senior Secured Notes due 2017 that were issued by Matson Alaska as governed by the Convertible Notes Indenture, in an aggregate amount not to exceed $3,000,000.

 

“Intercreditor Agreement” means that certain intercreditor and collateral agency agreement, dated as of the First Amendment Effective Date, by and among the Agent and the holders of the Senior Notes substantially in the form provided to the Borrower on or prior to the First Amendment Effective Date.

 

“Matson Alaska” means Matson Alaska, Inc. (formerly known as Horizon Lines, Inc.).

 

“Net Debt” means, at any time of determination thereof, the excess of the principal amount of all Debt of the Borrower and its Subsidiaries on a consolidated basis on such date over the Net Debt Cash Amount on such date.

 

“Net Debt Cash Amount” means, for any date of determination, the sum over $15,000,000 (excluding any amount in the CCF) as of such date of (i) the Borrower’s and its Subsidiaries’ unrestricted cash and cash equivalents (other than any amounts in the CCF) as of such date and (ii) 60% of the amount in the CCF as of such date.

 

“Note Purchase Agreement” means, for any date of determination, (i) the 2012 Note Purchase Agreement, (ii) the 2013 Note Purchase Agreement and (iii) any other note purchase agreement entered into by a Loan Party on or after the First Amendment Effective Date, in each of cases (i), (ii) and (iii) under which notes in an aggregate principal amount of at least $30,000,000 are issued and sold and remain outstanding as of such date of determination; provided, however, that the term Note Purchase Agreement shall exclude (a) Title XI Debt, (b) financings to build, modify and/or acquire Vessel(s) secured by such Vessel(s) (other than Vessel(s) constituting Collateral) and (c) for the avoidance of doubt, any Debt between or among the Borrower and its Subsidiaries.

 

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“Notice of Loan Prepayment” means a notice of prepayment with respect to a Loan, which shall be substantially in the form of Exhibit I or such other form as may be approved by the Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Agent), appropriately completed and signed by an Authorized Officer.

 

“Security Agreement” means, individually, each of (a) that certain Security Agreement (Vessel Type Aloha Class — Hull No. 29) dated as of the applicable date thereof between Matson Navigation and the Collateral Agent in substantially the form set forth as Exhibit J-1, (b) that certain Security Agreement (Vessel Type Aloha Class — Hull No. 30) dated as of the applicable date thereof between Matson Navigation and the Collateral Agent in substantially the form set forth as Exhibit J-2 and (c) any other Security Agreement with respect to an applicable Vessel (or contract to build a Vessel) between a Loan Party and the Collateral Agent in substantially the form set forth as Exhibits J-1 and J-2 with respect to such applicable Vessel (or contract to build a Vessel) and designated in writing from time to time by any Loan Party to the Collateral Agent as a “Security Agreement” hereunder.

 

“Senior Notes” means the notes issued pursuant to the Note Purchase Agreements.

 

“2013 Note Purchase Agreement” means that certain Note Agreement, dated as of November 5, 2013, by and among the Borrower and the purchasers party thereto.

 

(ii)                                  The following definitions in Section 1.01 of the Credit Agreement are hereby amended to read as follows:

 

“Aggregate Commitments” means, as of any date of determination, the Commitments of all the Lenders.  The initial amount of the Aggregate Commitments in effect on the First Amendment Effective Date is $400,000,000.  The Aggregate Commitments may be increased or decreased from time to time as provided herein.

 

“Applicable Rate” means with respect to the commitment fee payable pursuant to Section 2.09(a), the Eurodollar Rate, the Base Rate and the Letter of Credit Fee, from time to time, the following percentages per annum, based upon the Consolidated Net Leverage Ratio as set forth below:

 

	
Pricing
   Level
    	
 
    	
Consolidated
   Net Leverage
   Ratio
    	
 
    	
Commitment
   Fee
    	
 
    	
Eurodollar
   Rate
    	
 
    	
Base
   Rate
    	
 
    	
Letter of
   Credit Fee
    	
 
    
	
1
    	
 
    	
<   1. 50 to 1.0
    	
 
    	
0.15
    	
%
    	
1.00
    	
%
    	
0.00
    	
%
    	
1.00
    	
%
    
	
2
    	
 
    	
> 1.50 to 1.0 but <   2.25 to 1.0
    	
 
    	
0.20
    	
%
    	
1.25
    	
%
    	
0.25
    	
%
    	
1.25
    	
%
    
	
3
    	
 
    	
> 2.25 to 1.0 but <   3.00 to 1.0
    	
 
    	
0.25
    	
%
    	
1.50
    	
%
    	
0.50
    	
%
    	
1.50
    	
%
    
	
4
    	
 
    	
> 3.00 to 1.0
    	
 
    	
0.30
    	
%
    	
1.75
    	
%
    	
0.75
    	
%
    	
1.75
    	
%
    

 

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The Applicable Rate in effect on the First Amendment Effective Date to the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.01(c) for the fiscal quarter ending June 30, 2015 shall initially be Pricing Level 2.  Thereafter Applicable Rate shall be determined by reference to the Consolidated Net Leverage Ratio as set forth in the most recent Compliance Certificate received by the Agent pursuant to Section 6.01(c).  Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Net Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.01(c); provided, however, that if such Compliance Certificate is not delivered when due in accordance with such Section, then, upon the request of the Required Lenders, Pricing Level 4 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and shall remain in effect until the date on which such Compliance Certificate is delivered in accordance with Section 6.01(c), whereupon the Applicable Rate shall be adjusted based upon the calculation of the Consolidated Net Leverage Ratio contained in such Compliance Certificate.

 

“Authorized Officer” means, with respect to any Loan Party, any officer of such Loan Party designated as an “Authorized Officer” for the purpose of this Agreement in a certificate executed by one of such Loan Party’s then existing Authorized Officers (as previously identified to the Agent) and any other officer or employee of the applicable Loan Party designated in or pursuant to an agreement between the applicable Loan Party and the Agent.  Any action taken under this Agreement or any other Loan Document on behalf of a Loan Party by any individual who on or after the Closing Date shall have been an Authorized Officer of such Loan Party and whom the Agent or any of the Lenders in good faith believes to be an Authorized Officer of such Loan Party at the time of such action shall be binding on such Loan Party even though such individual shall have ceased to be an Authorized Officer of such Loan Party, unless the Borrower or such Loan Party shall have provided the Agent with a certificate executed by one of such Loan Party’s then existing Authorized Officers (as previously identified to the Agent) indicating that such individual is no longer an “Authorized Officer.”

 

“Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion of Committed Loans from one Type to the other, or (c) a continuation of Eurodollar Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit A or such other form as may be approved by the Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Agent), appropriately completed and signed by an Authorized Officer of the Borrower.

 

“Consolidated EBITDA” means, for any period, for the Borrower and its Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for such period plus (a) the following to the extent deducted in calculating such Consolidated Net Income: (i) Consolidated Interest Expense for such period, (ii) the provision for federal, state, local and foreign income taxes

 

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payable for such period, (iii) depreciation expense for such period, (iv) amortization expense for such period, (v) deferred dry-docking amortization expense for such period (to the extent not included in the preceding clause (iv)), (vi) one-time expenses, including transaction costs, related to the Horizon Acquisition to the extent such expenses and costs are incurred within 12 months of the consummation of the Horizon Acquisition, provided that the aggregate amount of expenses and costs added back to Consolidated EBITDA pursuant to this clause (vi) shall not exceed $50,000,000, and (vii) non-cash stock-based compensation.  For purposes of calculating Consolidated EBITDA for any period of four consecutive quarters, if during such period the Borrower or any Subsidiary shall have consummated (i) an Acquisition of a Person that upon such consummation constitutes a Material Subsidiary (including any such Acquisition structured as an asset purchase, merger or consolidation) or an Acquisition of a Material Line of Business, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such transaction occurred on the first day of such period; provided, that if the aggregate purchase price for any Acquisition is greater than or equal to $25,000,000, Consolidated EBITDA shall only be calculated on a pro forma basis with respect to such Acquisition to the extent such pro forma calculations are based on audited financial statements or other financial statements reasonably satisfactory to the Required Lenders and (ii) a disposition of all or substantially all of the assets of a Material Subsidiary or of at least 50% of the equity interests of a Material Subsidiary or of a Material Line of Business, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such transaction occurred on the first day of the such period, so long as, in each case, such pro forma calculations are (x) made in accordance with Regulation S-X or (y) are otherwise acceptable to the Required Lenders.  Notwithstanding the foregoing, for purposes of calculating Consolidated EBITDA for the fiscal quarters ended September 30, 2014, December 31, 2014, March 31, 2015 and the portion of the June 30, 2015 fiscal quarter ended May 29, 2015, Consolidated EBITDA of Matson Alaska, Inc. and its Subsidiaries shall be deemed to be $24,865,661, $9,687,861, $14,257,792 and $13,333,025, respectively.

 

“Debt” means, as to any Person at the time of determination thereof without duplication, (a) any indebtedness of such Person (i) for borrowed money, including commercial paper and revolving credit lines, (ii) evidenced by bonds, debentures or notes or otherwise representing extensions of credit, whether or not representing obligations for borrowed money (except trade accounts payable arising in the ordinary course of business) or (iii) for the payment of the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course of business, regardless of when such liability or other obligation is due and payable, (b) Capitalized Lease Obligations of such Person, (c) direct or contingent obligations under standby letters of credit (and substantially similar instruments such as bank guaranties), (d) Guarantees, assumptions and endorsements by such Person (other than endorsements of negotiable instruments for collection in the ordinary course of business) of Debt of another Person of the types described in clauses (a), (b) and (c) hereof, and (e) Debt of another Person of the types described in clauses (a), (b) and (c) hereof, that is secured by Liens on the property or other assets of such Person.  Notwithstanding the forgoing, “Debt” shall not include (i) to the extent not exceeding $15,000,000 at any time outstanding, unsecured contingent

 

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reimbursement obligations under standby letters of credit (and substantially similar instruments such as bank guaranties) or (ii) a Guarantee of Matson Navigation’s trade accounts receivable purchased or held by the CCF.

 

“Eurodollar Rate” means:

 

(a)                                 for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to the London Interbank Offered Rate (“LIBOR”) or a comparable or successor rate, which rate is approved by the Agent, as published by Bloomberg (or such other commercially available source providing such quotations as may be designated by the Agent from time to time) (in such case, the “LIBOR Rate”) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period; and

 

(b)                                 for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to the LIBOR Rate, at approximately 11:00 a.m., London time determined two Business Days prior to such date for Dollar deposits with a term of one month commencing that day;

 

provided that (i) to the extent a comparable or successor rate is approved by the Agent in connection herewith, the approved rate shall be applied in a manner consistent with market practice; provided, further that to the extent such market practice is not administratively feasible for the Agent, such approved rate shall be applied as otherwise reasonably determined by the Agent and (ii) if the Eurodollar Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.

 

“Excluded Subsidiary” means (a) each CFC and (b) each U.S. Foreign Holdco; provided, that in each case, such Person has not issued or guaranteed any notes issued pursuant to the Note Purchase Agreements.

 

“Existing Letters of Credit” means those letters of credit set forth on Schedule 1.01 as of the First Amendment Effective Date.

 

“FATCA” means Sections 1471 through 1474 of the Code, as of the Closing Date (or any amended or successor version that is substantively comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

“Fee Letter” means the administrative agent fee letter agreement, dated July 7, 2015, among the Borrower, the Agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated.

 

“Interest Period” means, as to each Eurodollar Loan, the period commencing on the date such Eurodollar Loan is disbursed or converted to or continued as a Eurodollar Loan and ending on the date one week or one, two,

 

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three or six months thereafter, as selected by the Borrower in its Committed Loan Notice; provided that:

 

(i)                                     any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

 

(ii)                                  any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

 

(iii)                               no Interest Period shall extend beyond the Maturity Date.

 

“L/C Issuer” means, as the context requires, (a) First Hawaiian Bank in its capacity as issuer of Letters of Credit hereunder (including certain Existing Letters of Credit), (b) Bank of America, N.A.  in its capacity as issuer of Letters of Credit hereunder (including certain Existing Letters of Credit), (c) Wells Fargo Bank, National Association in its capacity as issuer of certain Existing Letters of Credit hereunder, (d) such other Lender selected by the Borrower pursuant to Section 2.03(l) from time to time to issue such Letter of Credit and (e) any successor issuer of Letters of Credit hereunder.  The term “L/C Issuer” when used with respect to a Letter of Credit or the L/C Obligations relating to a Letter of Credit shall refer to the L/C Issuer that issued such Letter of Credit.

 

“Maturity Date” means July 30, 2020.  If such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

 

“Priority Debt” means, at any time of determination thereof and without duplication,  (a) Debt of the Borrower or Matson Navigation secured by any Lien (including, without limitation, all Title XI Debt and all Debt secured by marine assets, in each case whether full recourse or limited recourse) and (b) all Debt secured by any Lien (including, without limitation, all Title XI Debt and all Debt secured by a Lien on marine assets, in each case whether full recourse or limited recourse) and, without duplication, all unsecured Debt of Subsidiaries of the Borrower (other than unsecured Debt of Guarantors); provided, however, that Priority Debt shall not include (i) Debt owing from any Subsidiary to the Borrower or any other Subsidiary, (ii) any of the Obligations, (iii) any of the obligations of the Borrower or any Subsidiary under the Note Purchase Agreements and Guarantees in respect thereof, so long as the Obligations are secured on an equal and ratable basis pursuant to Section 6.03(ii), (iv) Debt secured solely by Collateral, or (v) the Horizon Notes, so long as the aggregate principal amount outstanding under the Horizon Notes is less than $3,000,000; provided further, for purposes of clarification, the obligations of the Borrower and its Subsidiaries under any Note Purchase Agreements and Guarantees in respect thereof shall not constitute Priority Debt solely as a result of such obligations being secured (x) solely by Collateral and/or (y) being secured

 

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(without the Obligations being equally and ratably secured) by cash collateral in an amount for each such Note Purchase Agreement not to exceed the amount of Cash Collateral at such time being provided by the Borrower and its Subsidiaries pursuant to Section 2.15.

 

“Sanction(s)” means any international economic sanction or trade embargo administered or enforced by the United States Government, including OFAC, or other relevant sanctions authority applicable to the Borrower and its Subsidiaries.

 

“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit B or such other form as approved by the Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Agent pursuant), appropriately completed and signed by an Authorized Officer of the Borrower.

 

(iii)                               The following definitions in Section 1.01 of the Credit Agreement are hereby deleted: (i) “Existing Note Purchase Agreement Lien,” and (ii) “2005 Note Purchase Agreement.”

 

(b)                                 Section 2.02.  Section 2.02(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(a)                                 Each Committed Borrowing, each conversion of Committed Loans from one Type to the other, and each continuation of Eurodollar Loans shall be made upon the Borrower’s irrevocable notice to the Agent, which may be given by: (A) telephone or (B) a Committed Loan Notice; provided that any telephonic notice must be confirmed immediately by delivery to the Agent of a Committed Loan Notice.  Each such notice must be received by the Agent not later than 11:00 a.m. (i) three Business Days prior to the requested date of any Borrowing of Eurodollar Loans or any conversion to or continuation of Eurodollar Loans or of any conversion of Eurodollar Loans to Base Rate Loans and (ii) one Business Day prior to the requested date of any Borrowing of Base Rate Loans.  Each Borrowing of, conversion to or continuation of Eurodollar Loans shall be in a principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof.  Except as provided in Sections 2.03(c) and 2.04(c), each Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof.  Each Committed Loan Notice (whether telephonic or written) shall specify (i) whether the Borrower is requesting a Committed Borrowing, a conversion of Committed Loans from one Type to the other, or a continuation of Eurodollar Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Committed Loans to be borrowed, converted or continued, (iv) the Type of Committed Loans to be borrowed or to which existing Committed Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of Committed Loan in a Committed Loan Notice or if the Borrower fails to give a timely notice requesting a conversion or continuation of a Eurodollar Loan, then the applicable Committed Loan shall be made as, or converted to, Base Rate Loans, unless such Committed Loan was a Eurodollar Loan, in which case such Committed Loan shall be continued as a Eurodollar Loan with an Interest Period of one month.  Any such automatic conversion to a Base Rate Loan and any such continuation of a Eurodollar

 

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Loan, in either case, shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Eurodollar Loans.  If the Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar Loans in any such Committed Loan Notice, but the Borrower fails to specify an Interest Period for such Committed Loan or continuation of a Eurodollar Loan, it will be deemed to have specified an Interest Period of one month.

 

(c)                                  Section 2.03.  New clauses (l) and (m) are hereby added to Section 2.03 of the Credit Agreement to read as follows:

 

(l)                                     Additional L/C Issuers.  The Borrower may from time to time, upon not less than five (5) Business Days’ notice from the Borrower to the Agent (or such shorter period of time as may be agreed by the Agent in its sole discretion), designate a Lender hereunder as an L/C Issuer (upon obtaining such Lender’s prior consent thereto).  The Agent will promptly notify the Lenders of any designation of any such additional L/C Issuers by the Borrower.  Upon (i) notification to the Lenders of any additional L/C Issuer by the Agent and (ii) delivery by the Borrower of such contact and other information regarding such L/C Issuer as the Agent shall reasonably request, such Lender shall become an L/C Issuer for all purposes of this Agreement, and references to “L/C Issuer” shall mean and include such Lender in its capacity as an L/C Issuer.

 

(m)                             L/C Issuer Reports to the Agent.  Unless otherwise agreed by the Agent, each L/C Issuer shall, in addition to its notification obligations set forth elsewhere in this Section, provide the Agent, the following:

 

(i)                                     reasonably prior to the time that such L/C Issuer issues, amends, renews, increases or extends a Letter of Credit, the date of such issuance, amendment, renewal, increase or extension and the stated amount of the applicable Letters of Credit after giving effect to such issuance, amendment, renewal or extension (and whether the amounts thereof shall have changed);

 

(ii)                                  on each Business Day on which such L/C Issuer makes a payment pursuant to a Letter of Credit, the date and amount of such payment;

 

(iii)                               on any Business Day on which the Borrower fails to reimburse a payment made pursuant to a Letter of Credit required to be reimbursed to such L/C Issuer on such day, the date of such failure and the amount of such payment;

 

(iv)                              on any other Business Day, such other information as the Agent shall reasonably request as to the Letters of Credit issued by such L/C Issuer; and

 

(v)                                 for so long as any Letter of Credit issued by an L/C Issuer is outstanding, such L/C Issuer shall deliver to the Agent (A) on the last Business Day of each calendar month, and (B) on each date that (1) an L/C Credit Extension occurs or (2) there is any expiration, cancellation and/or disbursement, in each case, with respect to any such Letter of Credit, a such information as the Agent shall reasonably request, including, the letter of credit number, maximum face amount, current face amount, beneficiary name, issuance date, expiry date and whether such Letter of Credit is may be automatically renewed or extended.

 

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The Agent shall maintain a record of all outstanding Letters of Credit based upon information provided by the Borrower and the L/C Issuers pursuant to this Section 2.03(m), and such record of the Agent shall, absent manifest error, be deemed a correct and conclusive record of all Letters of Credit outstanding from time to time hereunder.  Notwithstanding the foregoing, if and to the extent the Agent determines that there are one or more discrepancies between information provided by the Borrower and any L/C Issuer hereunder, the Agent will notify the Borrower and such L/C Issuer thereof and the Borrower and such L/C Issuer shall endeavor to reconcile any such discrepancy.

 

(d)                                 Section 2.04.  Section 2.04(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(b)                                 Borrowing Procedures.  Each Swing Line Borrowing shall be made upon the Borrower’s irrevocable notice to the Swing Line Lender and the Agent, which may be given by:  (A) telephone or (B) a Swing Line Loan Notice; provided that any telephonic notice must be confirmed immediately by delivery to the Swing Line Lender and the Agent of a Swing Line Loan Notice.  Each such notice must be received by the Swing Line Lender and the Agent not later than 10:00 a.m. on the requested borrowing date, and shall specify (i) the amount to be borrowed, which shall be a minimum of $100,000, and (ii) the requested borrowing date, which shall be a Business Day.  Promptly after receipt by the Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the Agent (by telephone or in writing) that the Agent has also received such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the Agent (by telephone or in writing) of the contents thereof.  Unless the Swing Line Lender has received notice (by telephone or in writing) from the Agent (including at the request of any Lender) prior to 11:00 a.m. on the date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the proviso to the first sentence of Section 2.04(a), or (B) that one or more of the applicable conditions specified in Article IV is not then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender will, not later than 12:00 p.m. on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the Borrower.

 

(e)                                  Section 2.05.

 

(i)                                     The first sentence in Section 2.05(a) is hereby amended and restated in its entirety to read as follows:

 

The Borrower may, upon delivery of a Notice of Loan Prepayment to the Agent, at any time or from time to time voluntarily prepay Committed Loans in whole or in part without premium or penalty; provided that (i) such notice must be received by the Agent not later than 11:00 a.m. (A) three Business Days prior to any date of prepayment of Eurodollar Loans and (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Loans shall be in a principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof; and (iii) any prepayment of Base Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding.

 

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(ii)                                  The first sentence in Section 2.05(b) is hereby amended and restated in its entirety to read as follows:

 

The Borrower may, upon delivery of a Notice of Loan Prepayment to the Swing Line Lender (with a copy to the Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in whole or in part without premium or penalty; provided that (i) such notice must be received by the Swing Line Lender and the Agent not later than 1:00 p.m. on the date of the prepayment, and (ii) any such prepayment shall be in a minimum principal amount of $100,000.  Each such notice shall specify the date and amount of such prepayment.

 

(f)                                   Section 2.10.  Section 2.10(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(b)                                 If, as a result of any restatement of or other adjustment to the financial statements of the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the Consolidated Net Leverage Ratio as calculated by the Borrower as of any applicable date was inaccurate and (ii) a proper calculation of the Consolidated Net Leverage Ratio would have resulted in higher pricing for such period, the Borrower shall immediately and retroactively be obligated to pay to the Agent for the account of the applicable Lenders or the L/C Issuer, as the case may be, promptly on demand by the Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code of the United States, automatically and without further action by the Agent, any Lender or the L/C Issuer), an amount equal to the excess of the amount of interest and fees that should have been paid for such period over the amount of interest and fees actually paid for such period.  This paragraph shall not limit the rights of the Agent, any Lender or the L/C Issuer, as the case may be, under Section 2.03(c)(iii), 2.03(i) or 2.08(b) or under Article VIII.  The Borrower’s obligations under this paragraph shall survive the termination of the Aggregate Commitments and the repayment of all other Obligations hereunder.

 

(g)                                  Section 2.14.  The introductory paragraph of Section 2.14 and Section 2.14(a) of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

 

The Borrower shall have the right, upon at least five Business Days’ prior written notice to the Agent, to increase the Aggregate Commitments by up to $150,000,000 in the aggregate in one or more increases, at any time prior to the date that is three months prior to the Maturity Date, subject, however, in any such case, to satisfaction of the following conditions precedent:

 

(a)                                 the Aggregate Commitments shall not exceed $550,000,000 without the consent of the Required Lenders;

 

(h)                                 Section 5.16.  Section 5.16 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

5.16                        Sanctions and Anti-Corruption Laws.

 

(a)                                 No Loan Party, no Subsidiary nor, to the knowledge of senior management of any Loan Party, any Related Party is an individual or entity that is, or is owned or controlled by any individual or entity that is (i) currently the subject or target of any Sanctions, (ii) included on OFAC’s List of Specially Designated Nationals, or any similar list enforced by any other relevant sanctions authority applicable to the Borrower and its Subsidiaries or (iii) located, organized or resident in a Designated Jurisdiction.

 

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(b)                                 Neither the Borrower nor any of its Subsidiaries has been charged with, or convicted of bribery or any other anti-corruption related activity under any law or regulation applicable to bribery or any other anti-corruption related activity in a U.S. or any non-U.S. country or jurisdiction, including but not limited to the United States Foreign Corrupt Practices Act of 1977 (“Anti-Corruption Laws”), and the Borrower has established and maintained procedures and controls which it reasonably believes are adequate to promote and achieve compliance by the Borrower and its Subsidiaries in all material respects with all applicable Anti-Corruption Laws.

 

(i)                                     Section 6.03.  Section 6.03 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

6.03. Covenant to Secure Obligations Equally and Ratably.  (i) If the Borrower or any of its Domestic Subsidiaries shall create, assume or otherwise incur any Lien upon any of its property or assets, whether now owned or hereafter acquired, other than Liens permitted by the provisions of Section 7.02 (including in such permitted Liens, without limitation, Liens securing Title XI Debt to the extent such Title XI Debt is permitted Priority Debt) or (ii) if the Borrower or any of its Subsidiaries shall create, assume or otherwise incur any Lien upon any of its property or assets, whether now owned or hereafter acquired to secure its obligations under any Note Purchase Agreement (other than (x) the Collateral and/or (y) cash collateral in an amount not to exceed, for each such Note Purchase Agreement, the amount of Cash Collateral being provided by the Borrower and its Subsidiaries pursuant to Section 2.15), then in either case, the Borrower will make, or will cause its Subsidiaries to make, effective provision whereby the Obligations will be secured by such Lien equally and ratably with any and all other Debt thereby secured so long as any such other Debt shall be so secured pursuant to an agreement or agreements (including security agreements and similar collateral documents and an intercreditor agreement) reasonably acceptable to the Required Lenders.

 

(j)                                    Section 6.06.  Section 6.06 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

6.06                        Use of Proceeds.  The Borrower shall, and shall cause its Subsidiaries to, use the proceeds of the Credit Extensions (a) to finance working capital, capital expenditures (including the Horizon Acquisition and other Acquisitions) and other lawful corporate purposes, (b) to refinance certain existing indebtedness of Matson Navigation, (c) for support of commercial paper issued by the Borrower, and (d) to pay fees and expenses incurred in connection with this Agreement and the Horizon Acquisition; provided that in no event shall the proceeds of any Credit Extension be used in contravention of any law or of any Loan Document.

 

(k)                                 Section 6.08.  Section 6.08 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

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6.08                        Guarantors.

 

(a)                                 Together with each delivery of financial statements required by Section 6.01(a) and 6.01(b), the Borrower shall notify the Agent if any wholly-owned Subsidiary has become a Material Domestic Subsidiary after the Initial Funding Date.  Within 30 days after such notification (or such longer period as determined by Agent in its sole discretion), the Borrower shall cause such wholly-owned Material Domestic Subsidiary to (i) become a Guarantor by executing and delivering to the Agent a joinder to the Guaranty, and (ii) at the request of the Agent, deliver to the Agent such organization documents, resolutions and favorable opinions of counsel, all in form, content and scope similar to those delivered on the Closing Date or otherwise reasonably satisfactory to the Agent; provided, that, in the case of the Subsidiaries of the Borrower acquired pursuant to the Horizon Acquisition, the provisions of this Section 6.08(a) shall not be required to be satisfied until September 15, 2015 (or such later date as determined by the Agent in its sole discretion).

 

(b)                                 If a Guarantor is a party to any transaction of merger, consolidation or other combination permitted by Section 7.04(b) or 7.04(c), the continuing or surviving Person of such transaction shall, within 30 days after the consummation of such transaction (or such longer period as determined by Agent in its sole discretion), (i) become a Guarantor by executing and delivering to the Agent a joinder to the Guaranty and (ii) at the request of the Agent, deliver to the Agent such organization documents, resolutions and favorable opinions of counsel, all in form, content and scope similar to those delivered on the Closing Date or otherwise reasonably satisfactory to the Agent.

 

(c)                                  Notwithstanding the forgoing, concurrently with such time as any Person becomes a guarantor or other obligor under any Note Purchase Agreement, the Borrower shall cause such Person to (i) become a Guarantor by executing and delivering to the Agent a joinder to the Guaranty, and (ii) at the request of the Agent, deliver to the Agent such organization documents, resolutions and favorable opinions of counsel, all in form, content and scope similar to those delivered on the Closing Date or otherwise reasonably satisfactory to the Agent.

 

(d)                                 So long as no Default exists, if a Guarantor ceases to be a Material Domestic Subsidiary, then upon the written request of the Borrower, the Agent shall release such Guarantor from its obligations under the Guaranty pursuant to Section 9.09; provided that the Agent shall not release such Guarantor unless such Guarantor is not at such time (or concurrently with such release by the Agent will cease to be) a guarantor or obligor under any Note Purchase Agreement.

 

(l)                                     Section 6.09.  New Section 6.09 is hereby added to the Credit Agreement to read as follows:

 

6.09                        Collateral.  At any time, at the written election of the Borrower (the “Collateral Election”), the Loan Parties shall deliver to the Agent (i) all Collateral Documents and such other document as are necessary to perfect the Agent’s Lien in the applicable Collateral and (ii) resolutions in form and substance satisfactory to the Agent; provided that at any time the Loan Parties have granted a Lien on the Collateral to the holders of the Senior Notes, the Borrower shall be required to deliver such documentation as is necessary to perfect to the Agent’s Lien on such Collateral on a pari passu basis.  The Borrower may make the Collateral Election at any time with respect to any Security Agreement.  In addition, from time to time on or after the First Amendment Effective Date the Borrower may enter into additional note purchase and/or credit agreements with

 

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lenders which are not party to the Intercreditor Agreement as of the First Amendment Effective Date for purpose of such additional note purchase and/or credit agreements, and the Borrower may designate, at the written election of the Borrower delivered to the Agent, such lenders to become parties to the Intercreditor Agreement.  Notwithstanding the foregoing, so long as no (i) Default has occurred or is continuing and (ii) the Borrower has revoked its applicable collateral election under the Senior Notes, the Borrower may revoke the Collateral Election with respect to the applicable Security Agreement(s) and, at the expense of the Borrower, the Agent shall deliver such releases as are necessary to evidence the termination of the applicable Liens.

 

(m)                             Section 7.02(f).  Section 7.02(f) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(f)                                   other Liens securing Debt not otherwise permitted by clauses (a) through (e) above, inclusive; provided that the aggregate amount of all Priority Debt does not, at any time, exceed the level prohibited by Section 7.01(c), provided that, notwithstanding the foregoing, the Borrower shall not, and shall not permit any Subsidiary to, create or permit to exist any Lien on any property securing Debt outstanding or issued under the Note Purchase Agreements (other than (x) Collateral and/or (y) cash collateral in an amount, for each such Note Purchase Agreement, not to exceed the amount of Cash Collateral being provided by the Borrower and its Subsidiaries pursuant to Section 2.15) unless and until the Obligations shall be secured equally and ratably with such Debt pursuant to an agreement or agreements (including security agreements and similar collateral documents and an intercreditor agreement) reasonably acceptable to the Required Lenders;

 

(n)                                 Section 7.02.  Section 7.02 of the Credit Agreement is hereby amended to replace the “.” at the end of clause (h) with “;” and to add new clauses (i), (j) and (k) to read as follows:

 

(i)                                     any Lien existing on any property or assets prior to the Horizon Acquisition that secures the Horizon Notes; provided that (i) such Lien shall not apply to any other property or assets of Matson Alaska and its Subsidiaries and (ii) such Lien shall secure only those obligations that it secures on the date of the Horizon Acquisition, and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;

 

(j)                                    any Lien pursuant to any Loan Document or the Collateral Documents; and

 

(k)                                 any Lien on the Collateral securing obligations under the Note Purchase Agreements.

 

(o)                                 Section 7.03.  Section 7.03(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(b)                                 own, purchase or acquire stock, obligations or securities of a Subsidiary, and, (i) so long as the Borrower is in compliance with the financial covenants set forth in Section 7.01 on a pro forma basis immediately after giving effect to such transaction, consummate Acquisitions and (ii) consummate the Horizon Acquisition;

 

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(p)                                 Section 7.05.  Section 7.05 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

7.05                        Sale of Capital Assets.  The Borrower shall not, and shall not permit any Subsidiary to, sell, lease, transfer or otherwise dispose of any Capital Asset to any Person, except that (i) any Loan Party may sell or otherwise dispose of any Capital Asset to any other Loan Party, (ii) any Subsidiary that is not a Loan Party may sell or otherwise dispose of any Capital Asset to the Borrower or any other Subsidiary and (iii) during any rolling twelve-month period, the Borrower or any Subsidiary may sell or otherwise dispose of Capital Assets which constituted up to 10% of the total value of the consolidated assets of Matson Navigation and its Subsidiaries as of December 31, 2014, so long as (A) such Capital Assets sold contributed less than 25% of the Consolidated Net Income of the Borrower in each of the three fiscal years immediately preceding any such sale and (B) such Capital Assets, when considered together with all other Capital Assets sold or otherwise disposed of subsequent to December 31, 2014, do not constitute in excess of 30% of the total value of the consolidated assets of Matson Navigation and its Subsidiaries as of December 31, 2014; provided, that this covenant shall not apply to any Lien permitted hereunder.

 

(q)                                 Sections 7.09 and 7.10.  New Sections 7.09 and 7.10 of the Credit Agreement are hereby added to read as follows:

 

7.09                        Sanctions.  Directly, or knowingly indirectly, use the proceeds of any Credit Extension (a) in connection with any investment in, or any transaction or dealings with, any Person that, at the time of such funding, is the subject of Sanctions in a manner that will result in a violation of Sanctions or (b) in any other manner in violation of Sanctions.

 

7.10                        Anti-Corruption Laws.  Directly, or knowingly indirectly, use the proceeds of any Credit Extension for any purpose which would breach Anti-Corruption Laws in any material respect.

 

(r)                                    Section 8.01.  Section 8.01(b) of the Credit Agreement is hereby amended by deleting the reference to “7.09” therein and substituting a reference to “7.10” in lieu thereof.

 

(s)                                   Section 8.01.  Section 8.01(e) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(e)                                  Cross-Default.  (i) an Event of Default (as defined in any Note Purchase Agreement) has occurred and is continuing under such Note Purchase Agreement; or (ii) the Borrower or any Material Subsidiary defaults in any payment of principal of, or premium or interest on, any Debt (other than the Obligations) beyond any period of grace provided with respect thereto, or the Borrower or any Material Subsidiary fails to perform or observe any other agreement, term or condition contained in any agreement relating to any such Debt (or any other event under any such agreement occurs and is continuing) and the effect of such default or other failure or event is to cause, or to permit the holder or holders of such Debt (or a trustee on behalf of such holder or holders) to cause, such Debt to become due (or to be required to be repurchased by the Borrower or any Subsidiary) prior to any stated maturity; provided that the aggregate amount of all Debt as to which such a default or other failure or event shall occur and be continuing exceeds $30,000,000; or

 

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(t)                                    Section 8.03.  Section 8.03 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

8.03                        Application of Funds.  After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable and the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the proviso to Section 8.02), any amounts received on account of the Obligations, subject to the terms of the Intercreditor Agreement (if applicable), shall, subject to the provisions of Sections 2.15 and 2.16, be applied by the Agent in the following order:

 

First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel to the Agent and amounts payable under Article III) payable to the Agent in its capacity as such;

 

Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders and the L/C Issuer (including fees, charges and disbursements of counsel to the respective Lenders and the L/C Issuer and amounts payable under Article III), ratably among them in proportion to the respective amounts described in this clause Second payable to them;

 

Third, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations, ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Third payable to them;

 

Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans and L/C Borrowings, ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Fourth held by them;

 

Fifth, to the Agent for the account of the L/C Issuer, to Cash Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit to the extent not otherwise Cash Collateralized by the Borrower pursuant to Sections 2.03 and 2.15; and

 

Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by law.

 

Subject to Sections 2.03(c) and 2.15, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

 

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(u)                                 Section 9.01.  The following paragraph is hereby added to the end of Section 9.01 to read as follows:

 

Each of the Lenders (in its capacities as a Lender and Swing Line Lender (if applicable)) and the L/C Issuer (a) irrevocably appoints and authorizes Bank of America to act on its behalf as Collateral Agent under the Intercreditor Agreement and (b) consents to and approves the terms of the Intercreditor Agreement.  By execution hereof, the Lenders acknowledge the terms of the Intercreditor Agreement and agree to be bound by the terms thereof and further authorize and direct the Agent and the Collateral Agent to enter into the Intercreditor Agreement on behalf of all the Lenders, to perform their obligations thereunder and to deliver and accept notices thereunder on behalf of the Lenders (and the Agent shall promptly provide copies of such notices to the Lenders).  In this connection, the Agent, as “Collateral Agent” and any co-agents, sub-agents and attorneys-in-fact appointed by the Agent pursuant to Section 9.05 for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Agent), shall be entitled to the benefits of all provisions of this Article IX and Article X (including Section 11.04(c), as though such co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set forth in full herein with respect thereto.  Notwithstanding anything to the contrary contained herein or in any other Loan Document, the Agent and Collateral Agent are hereby irrevocably authorized and directed by each Lender to take any action requested by the Borrower having the effect of releasing any Collateral, subject to Section 6.09, (i) to the extent necessary to permit consummation of any transaction not prohibited by any Loan Document or that has been consented to in accordance with Section 10.01 or (ii) pursuant to the terms of the applicable Collateral Documents.

 

(v)                                 Section 9.03.  The final paragraph of Section 9.03 of the Credit Agreement is hereby amended to read as follows:

 

The Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or the creation, perfection or priority of any Lien purported to be created by the Collateral Documents, (v) the value or the sufficiency of any Collateral, or (vi) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Agent.

 

(w)                               Section 10.04.  Sections 10.04(a) and (b) of the Credit Agreement are hereby amended to read as follows:

 

(a)                                 Costs and Expenses.  The Borrower shall pay (i) except as provided in Section 10.06(b)(iv), all reasonable out-of-pocket expenses incurred by the Agent and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Agent), in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement, the other Loan Documents, the Collateral Documents and the Intercreditor Agreement or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all

 

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reasonable out-of-pocket expenses incurred by the L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by the Agent, any Lender or the L/C Issuer (including the fees, charges and disbursements of any counsel for the Agent, any Lender or the L/C Issuer), in connection with the enforcement or protection of its rights (A) in connection with this Agreement, the other Loan Documents, the Collateral Documents and the Intercreditor Agreement, including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

 

(b)                                 Indemnification by the Borrower.  The Borrower shall indemnify the Agent (and any sub-agent thereof), each Lender and the L/C Issuer, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any other Loan Party) other than such Indemnitee and its Related Parties arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document, the Collateral Documents, the Intercreditor Agreement or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder, the consummation of the transactions contemplated hereby or thereby, or, in the case of the Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement, the other Loan Documents, the Collateral Documents and the Intercreditor Agreement, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee, (y) result from a claim brought by the Borrower against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction or (z) arise solely from claims of any Indemnitee against one or more other Indemnities that do not involve or have not resulted from (A) an act or omission of an Indemnitee in its capacity as Agent, L/C Issuer, arranger or book manager and (B) an act or omission (or an alleged act or omission) by the Borrower or any Subsidiary.  Without limiting the provisions of Section 3.01(c), this Section 10.04(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

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(x)                                 Section 10.06.  The first sentence in the last paragraph in Section 10.06(b) of the Credit Agreement is hereby amended to read as follows:

 

Subject to acceptance and recording thereof by the Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and the Intercreditor Agreement (if applicable) and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement and the Intercreditor Agreement (if applicable), and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement and the Intercreditor Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05, and 10.04 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.

 

(y)                                 Section 10.10.  Section 10.10 of the Credit Agreement is hereby amended to read as follows:

 

10.10                 Counterparts; Integration; Effectiveness.

 

This Agreement and each of the other Loan Documents may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Agent or the L/C Issuers constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Agent and when the Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by fax transmission or e-mail transmission (e.g., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement or such other Loan Document or certificate.  Without limiting the foregoing, to the extent a manually executed counterpart is not specifically required to be delivered under the terms of any Loan Document, upon the request of any party, such fax transmission or e-mail transmission shall be promptly followed by such manually executed counterpart.

 

(z)                                  Section 10.17.  Section 10.17 of the Credit Agreement is hereby amended to read as follows:

 

10.17                 Electronic Execution of Assignments and Certain Other Documents.

 

The words “execute,” “execution,” “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Agreement, any other document executed in connection herewith and the transactions contemplated

 

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hereby (including without limitation Assignment and Assumptions, amendments or other modifications, Loan Notices, Swing Line Loan Notices, waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that notwithstanding anything contained herein to the contrary the Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Agent pursuant to procedures approved by it; provided further without limiting the foregoing, upon the request of any party, any electronic signature shall be promptly followed by such manually executed counterpart.

 

(aa)                          Existing Letters of Credit.  Schedule 1.01 to the Credit Agreement is hereby deleted in its entirety and replaced with Schedule 1.01 attached hereto.

 

(bb)                          Commitments and Applicable Percentages.  Schedule 2.01 to the Credit Agreement is hereby deleted in its entirety and is replaced with Schedule 2.01 attached hereto.

 

(cc)                            Form of Compliance Certificate.  Exhibit F to the Credit Agreement is hereby deleted in its entirety and is replaced with Exhibit F attached hereto.

 

(dd)                          Form of Notice of Loan Prepayment.  A new Exhibit I is hereby added to the Credit Agreement in the form of Exhibit I attached hereto.

 

(ee)                            Form of Security Agreement.  New Exhibits J-1 and J-2 are hereby added to the Credit Agreement in the form of Exhibits J-1 and J-2 attached hereto.

 

(ff)                              Compliance Certificate.  The Lenders hereby agree that for purposes of calculating the financial covenants set forth in Section 7.01 of the Credit Agreement for the fiscal quarter ending June 30, 2015, this Amendment shall be deemed to be effective as of June 30, 2015.

 

2.                                      Effectiveness; Conditions Precedent.  This Amendment shall be effective upon satisfaction of the following conditions precedent:

 

(a)                                 Receipt by the Agent of this Amendment duly executed by the Loan Parties and the Lenders;

 

(b)                                 Receipt by the Agent of (i) a certificate of a Responsible Officer of the Borrower, in form and substance satisfactory to the Agent attaching a certified copy of resolutions of the Loan Parties approving and adopting this Amendment and authorizing the execution and delivery of this Amendment and (ii) such documents and certifications as the Agent may reasonably require to evidence that the Loan Parties are in good standing in their jurisdiction of incorporation;

 

(c)                                  Receipt by the Agent of favorable opinions of Gibson, Dunn & Crutcher LLP and Hawaii counsel reasonably acceptable to the Agent, addressed to the Agent and each Lender, as to such matters concerning the Loan Parties and this Amendment as the Lenders may reasonably request;

 

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(d)                                 Receipt by the Agent of copies of amendments to the 2012 Note Purchase Agreement and the 2013 Note Purchase Agreement in form and substance reasonably satisfactory to the Agent, and a copy of any Note Purchase Agreement to be executed on the First Amendment Effective Date in form and substance reasonably satisfactory to Agent;

 

(e)                                  Receipt by the Agent of the fully executed Intercreditor Agreement;

 

(f)                                   Payment by the Loan Parties to the Agent and the Arranger, all fees due and payable to the Agent and the Arranger on the date hereof; and

 

(g)                                  Payment by the Loan Parties of the reasonable and documented out-of-pocket costs and expenses of the Agent relating to this Amendment, including without limitation, the fees and expenses of Moore & Van Allen PLLC.

 

3.                                      Ratification of Credit Agreement.  Each of the Borrower and the Guarantors acknowledges and consents to the terms set forth herein and reaffirms its obligations under the Loan Documents, as amended hereby.  This Amendment is a Loan Document.

 

4.                                      Authority/Enforceability.  The Borrower represents and warrants as follows:

 

(a)                                 It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.

 

(b)                                 This Amendment has been duly executed and delivered by such Person and the Credit Agreement, as amended hereby, constitutes such Person’s legal, valid and binding obligations, enforceable in accordance with its terms.

 

(c)                                  No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment, or, if such consent is required, it has been obtained.

 

(d)                                 The execution and delivery of this Amendment does not (i) violate, contravene or conflict with any provision of its, or its Subsidiaries’ Organization Documents or (ii) materially violate, contravene or conflict with any Laws applicable to it or any of its Subsidiaries.

 

5.                                      Representations and Warranties of the Borrower.  The Borrower represents and warrants to the Lenders that after giving effect to this Amendment (a) the representations and warranties of the Borrower set forth in Article V of the Credit Agreement are true and correct in all material respects (or, if such representation or warranty is qualified by materiality or Material Adverse Effect, it shall be true and correct in all respects as drafted) as of the date hereof, and (b) no event has occurred and is continuing which constitutes a Default or an Event of Default.

 

6.                                      FATCA Grandfathering.  For purposes of determining withholding Taxes imposed under FATCA, from and after the effective date of this Amendment, the Loan Parties and the Agent shall treat (and the Lenders hereby authorize the Agent to treat) the Credit Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

21

 

7.                                      New Lender.

 

(a)                                 Royal Bank of Canada (the “New Lender”) hereby agrees to provide a Commitment in the amount set forth on Schedule 2.01 attached hereto and the initial Applicable Percentage of the New Lender shall be as set forth therein.

 

(b)                                 The New Lender (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Amendment and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 10.06(b)(iii) and (v) of the Credit Agreement (subject to such consents, if any, as may be required under Section 10.06(b)(iii) of the Credit Agreement), (iii) from and after the First Amendment Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by its Commitment and either it, or the Person exercising discretion in making its decision to provide such Commitment, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 6.01 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Amendment and to provide its Commitment, (vi) it has, independently and without reliance upon the Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Amendment and to provide its Commitment, and (vii) if it is a Foreign Lender, attached hereto is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the New Lender; and (b) agrees that (i) it will, independently and without reliance upon the Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

(c)                                  The Borrower agrees that, as of the date hereof, the New Lender shall (i) be a party to the Credit Agreement and the other Loan Documents, (ii) be a “Lender” for all purposes of the Credit Agreement and the other Loan Documents, and (iii) have the rights and obligations of a Lender under the Credit Agreement and the other Loan Documents.

 

(d)                                 The applicable address, facsimile number and electronic mail address of the New Lender for purposes of Section 10.02 of the Credit Agreement are as set forth in the New Lender’s Administrative Questionnaire delivered by the New Lender to the Agent on or before the date hereof or to such other address, facsimile number and electronic mail address as shall be designated by the New Lender in a notice to the Agent.

 

(e)                                  The Lenders’ Commitments and Loans under the Credit Agreement are hereby assigned and reallocated among the Lenders, including the New Lender, without recourse, representation or warranty, such that each of the Lenders, including the New Lender, has a Commitment in the amount set forth on Schedule 2.01 and holds its Applicable Percentage of the outstanding Loans.  Notwithstanding anything in the Credit Agreement or any other Loan Document to the contrary, all assignments and reallocations of Loans and Commitments pursuant to this Section 7 shall be deemed to be assignments made subject to and in compliance with Section 10.06 of the Credit Agreement (including, without limitation, the ‘Standard Terms and Conditions’ applicable to Assignments and Assumptions).

 

22

 

8.                                      Counterparts/Telecopy.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of executed counterparts of this Amendment by telecopy or pdf shall be effective as an original.

 

9.                                      GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

[remainder of page intentionally left blank]

 

23

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

	
BORROWER:
    	
MATSON, INC.,
    
	
 
    	
a Hawaii corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew J. Cox
    	
 
    
	
 
    	
Name:
    	
Matthew J. Cox
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joel M. Wine
    	
 
    
	
 
    	
Name:
    	
Joel M. Wine
    
	
 
    	
Title:
    	
CFO and Sr. Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
GUARANTORS:
    	
MATSON NAVIGATION   COMPANY, INC.,
    
	
 
    	
a Hawaii corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew J. Cox
    	
 
    
	
 
    	
Name:
    	
Matthew J. Cox
    
	
 
    	
Title:
    	
Chairman of the Board,   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
MATSON   TERMINALS, INC.,
    
	
 
    	
a Hawaii corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew J. Cox
    	
 
    
	
 
    	
Name:
    	
Matthew J. Cox
    
	
 
    	
Title:
    	
Chairman of the Board   and President
    
	
 
    	
 
    
	
 
    	
MATSON   VENTURES, INC.,
    
	
 
    	
a Hawaii corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew J. Cox
    	
 
    
	
 
    	
Name:
    	
Matthew J. Cox
    
	
 
    	
Title:
    	
Chairman of the Board   and President
    
	
 
    	
 
    
	
 
    	
MATSON LOGISTICS, INC.,
    
	
 
    	
a Hawaii corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew J. Cox
    	
 
    
	
 
    	
Name:
    	
Matthew J. Cox
    
	
 
    	
Title:
    	
Chairman of the Board
    

 

MATSON, INC.

FIRST AMENDMENT

 

1

 

	
 
    	
 
    
	
 
    	
AGENT:
    	
BANK OF AMERICA, N.A.,
    
	
 
    	
as Agent
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brenda Schriner
    	
 
    
	
 
    	
Name:
    	
Brenda Schriner
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
LENDERS:
    	
BANK OF AMERICA, N.A.,
    
	
 
    	
as Lender, L/C Issuer   and Swing Line Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gordon H. Gray
    	
 
    
	
 
    	
Name:
    	
Gordon H. Gray
    
	
 
    	
Title:
    	
Senior Vice President
    
	
 
    	
 
    
	
 
    	
FIRST HAWAIIAN BANK,
    
	
 
    	
as a Lender and L/C   Issuer
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dawn Hoffman
    	
 
    
	
 
    	
Name:
    	
Dawn Hoffman
    
	
 
    	
Title:
    	
Senior Vice President
    
	
 
    	
 
    
	
 
    	
BRANCH BANKING AND   TRUST COMPANY,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert Searson
    	
 
    
	
 
    	
Name:
    	
Robert Searson
    
	
 
    	
Title:
    	
Senior Vice President
    
	
 
    	
 
    
	
 
    	
JPMORGAN CHASE BANK,   N.A.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Alex Rogin
    	
 
    
	
 
    	
Name:
    	
Alex Rogin
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
PNC BANK, NATIONAL   ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Philip K. Liebscher
    	
 
    
	
 
    	
Name:
    	
Philip K. Liebscher
    
	
 
    	
Title:
    	
Senior Vice President
    
	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL   ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Carlos L. Lamboglia
    	
 
    
	
 
    	
Name:
    	
Carlos L. Lamboglia
    
	
 
    	
Title:
    	
Vice President
    
					

 

MATSON, INC.

FIRST AMENDMENT

 

2

 

	
 
    	
AMERICAN SAVINGS BANK,   F.S.B.,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Edward Chin
    	
 
    
	
 
    	
Name:
    	
Edward Chin
    
	
 
    	
Title:
    	
First Vice President
    
	
 
    	
 
    
	
 
    	
BANK OF HAWAII,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John McKenna
    	
 
    
	
 
    	
Name:
    	
John McKenna
    
	
 
    	
Title:
    	
Senior Vice President
    
	
 
    	
 
    
	
 
    	
KEYBANK NATIONAL   ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tad L. Stainbrook
    	
 
    
	
 
    	
Name:
    	
Tad L. Stainbrook
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
WELLS FARGO BANK,   NATIONAL ASSOCIATION,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sid Khanolkar
    	
 
    
	
 
    	
Name:
    	
Sid Khanolkar
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
CENTRAL PACIFIC BANK,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Fernando Lopez
    	
 
    
	
 
    	
Name:
    	
Fernando Lopez
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
NEW LENDER:
    	
ROYAL BANK OF CANADA,
    
	
 
    	
as New Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Benjamin Thomas
    	
 
    
	
 
    	
Name:
    	
Benjamin Thomas
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

MATSON, INC.

FIRST AMENDMENT

 

3

 

Schedule 1.01

 

EXISTING LETTERS OF CREDIT

 

Existing Letters of Credit on the Closing Date issued by First Hawaiian Bank:

 

	
No.
    	
 
    	
Beneficiary
    	
 
    	
Amount (in
   Dollars)
    	
 
    	
Issuance Date
    	
 
    	
Expiry Date
    	
 
    	
Currency
    	
 
    
	
3060284
    	
 
    	
The Travelers Indemnity   Company
    	
 
    	
25,000.00
    	
 
    	
12/01/03
    	
 
    	
12/01/12
    	
 
    	
USD
    	
 
    
	
SB20020034
    	
 
    	
U.S. Department of   Labor, Office or Worker’s Compensation Program
    	
 
    	
2,500,000.00
    	
 
    	
5/1/2002 effective   7/1/2002
    	
 
    	
7/1/2013
    	
 
    	
USD
    	
 
    
	
SB20030007
    	
 
    	
State of Hawaii,   Department of Transportation, Harbor Division
    	
 
    	
678,531.00
    	
 
    	
1/24/2003
    	
 
    	
1/24/2013
    	
 
    	
USD
    	
 
    
	
SB20070024
    	
 
    	
Self Insurance Plans,   State of California
    	
 
    	
220,000.00
    	
 
    	
3/19/2007
    	
 
    	
3/19/2013
    	
 
    	
USD
    	
 
    
	
SB20070026
    	
 
    	
XL Specialty Insurance   Company &/or Greenwich Insurance Co.
    	
 
    	
1,035,000.00
    	
 
    	
4/3/2007
    	
 
    	
9/15/2012
    	
 
    	
USD
    	
 
    
	
SB20070047
    	
 
    	
Signal Mutual Indemnity   Association c/o Signal Administration
    	
 
    	
2,071,818.00
    	
 
    	
7/25/2007
    	
 
    	
10/1/2012
    	
 
    	
USD
    	
 
    
	
SB20080044
    	
 
    	
5733 San Leandro, LP, A   California Limited Partnership
    	
 
    	
20,032.25
    	
 
    	
8/29/2008
    	
 
    	
8/29/2012
    	
 
    	
USD
    	
 
    
	
SB20080045
    	
 
    	
700 Independent Road,   LP, A California Limited Partnership
    	
 
    	
64,020.00
    	
 
    	
8/29/2008
    	
 
    	
8/29/2012
    	
 
    	
USD
    	
 
    
	
SB20080046
    	
 
    	
Bonanza Buildings, LLC,   A California Limited Liability Company
    	
 
    	
105,924.10
    	
 
    	
8/29/2008
    	
 
    	
8/29/2012
    	
 
    	
USD
    	
 
    
	
SB20080047
    	
 
    	
9401 San Leandro, LP, A   California Limited Partnership
    	
 
    	
168,000.00
    	
 
    	
8/29/2008
    	
 
    	
8/29/2012
    	
 
    	
USD
    	
 
    
	
SB20100060
    	
 
    	
First Industrial, LP
    	
 
    	
85,000.00
    	
 
    	
11/8/2010
    	
 
    	
11/8/2012
    	
 
    	
USD
    	
 
    
	
SB20110026
    	
 
    	
BCIC Phase One, LLC
    	
 
    	
29,354.40
    	
 
    	
8/12/2011
    	
 
    	
8/5/2013
    	
 
    	
USD
    	
 
    

 

Existing Letters of Credit on the First Amendment Effective Date issued by Wells Fargo Bank, National Association:

 

	
No.
    	
 
    	
Beneficiary
    	
 
    	
Amount (in
   Dollars)
    	
 
    	
Issuance Date
    	
 
    	
Expiry Date
    	
 
    	
Currency
    	
 
    
	
SM227390W
    	
 
    	
United States Fidelity   and Guaranty Company
    	
 
    	
910,000.00
    	
 
    	
8/21/2007
    	
 
    	
1/10/2016
    	
 
    	
USD
    	
 
    
	
SM227399W
    	
 
    	
National Union Fire   Insurance of Pittsburgh
    	
 
    	
1,366,396.00
    	
 
    	
8/21/2007
    	
 
    	
2/27/2016
    	
 
    	
USD
    	
 
    
	
SM231642W
    	
 
    	
KTR South Bay I, LLC
    	
 
    	
1,750,000.00
    	
 
    	
6/12/2008
    	
 
    	
10/5/2015
    	
 
    	
USD
    	
 
    

 

 

Schedule 2.01

 

COMMITMENTS AND APPLICABLE PERCENTAGES

 

	
Lender
    	
 
    	
Commitment
    	
 
    	
Applicable Percentage of
   Aggregate Commitments
    	
 
    
	
Bank of America, N.A.
    	
 
    	
$
    	
50,000,000
    	
 
    	
12.500000000
    	
%
    
	
First Hawaiian Bank
    	
 
    	
$
    	
50,000,000
    	
 
    	
12.500000000
    	
%
    
	
Branch Banking and Trust Company
    	
 
    	
$
    	
40,000,000
    	
 
    	
10.000000000
    	
%
    
	
JPMorgan Chase Bank, N.A.
    	
 
    	
$
    	
40,000,000
    	
 
    	
10.000000000
    	
%
    
	
PNC Bank, National Association
    	
 
    	
$
    	
40,000,000
    	
 
    	
10.000000000
    	
%
    
	
U.S. Bank National Association
    	
 
    	
$
    	
40,000,000
    	
 
    	
10.000000000
    	
%
    
	
American Savings Bank, F.S.B.
    	
 
    	
$
    	
25,000,000
    	
 
    	
6.250000000
    	
%
    
	
Bank of Hawaii
    	
 
    	
$
    	
25,000,000
    	
 
    	
6.250000000
    	
%
    
	
KeyBank National Association
    	
 
    	
$
    	
25,000,000
    	
 
    	
6.250000000
    	
%
    
	
Royal Bank of Canada
    	
 
    	
$
    	
25,000,000
    	
 
    	
6.250000000
    	
%
    
	
Wells Fargo Bank, National Association
    	
 
    	
$
    	
25,000,000
    	
 
    	
6.250000000
    	
%
    
	
Central Pacific Bank
    	
 
    	
$
    	
15,000,000
    	
 
    	
3.750000000
    	
%
    
	
TOTAL
    	
 
    	
$
    	
400,000,000
    	
 
    	
100.000000000
    	
%
    

 

 

Exhibit F

 

FORM OF COMPLIANCE CERTIFICATE

 

For the fiscal quarter ended                  , 20   . (“Statement Date”)

 

I,                       , [Title] of Matson, Inc., a Hawaii corporation (the “Borrower”) hereby certify that, to the best of my knowledge and belief, with respect to that certain Credit Agreement dated as of June 4, 2012 (as amended, modified, restated or supplemented from time to time, the “Credit Agreement”; all of the defined terms in the Credit Agreement are incorporated herein by reference) among the Borrower, the Lenders and Bank of America, N.A., as Agent:

 

(a)                                 The company-prepared financial statements which accompany this certificate are true and correct in all material respects and have been prepared in accordance with GAAP consistently applied throughout the period covered thereby, subject only to changes resulting from year-end adjustments.

 

(b)                                 (select one):

 

o                                    Since             (the date of the last similar certification, or, if none, the Closing Date) no Default or Event of Default has occurred under the Credit Agreement.

 

o                                    The following covenants or conditions have not been performed or observed and the following is a list of the nature and period of existence of each such Default and what action the Borrower proposes to take with respect thereto:

 

(c)                                  (select one):

 

o                                    Attached hereto are supplements to Schedule 5.08 to the Credit Agreement such that, as supplemented, such Schedule is accurate and complete as of the date hereof.

 

o                                    No such supplements are required at this time.

 

Delivered herewith are detailed calculations demonstrating compliance by the Loan Parties with the financial covenants contained in Sections 7.01 and 7.05 of the Credit Agreement as of the end of the fiscal period referred to above.

 

This        day of            , 20  .

 

	
 
    	
MATSON, INC.,
    
	
 
    	
a Hawaii corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

 

Attachment to Officer’s Certificate

Computation of Financial Covenants and Consolidated Net Leverage Ratio

 

4 Quarter Period

Ending     /     /     

 

I. Consolidated Interest Coverage Ratio - Section 7.01(a)

A. Consolidated EBITDA for the most recent 4 quarters

1.                                      Consolidated Net Income

2.                                      Consolidated Interest Expense

3.                                      federal, state, local and foreign income tax expense

4.                                      Depreciation Expense

5.                                      Amortization Expense

6.                                      deferred dry-docking amortization expense

7.                                      one-time expenses and costs related to the Horizon Acquisition to the extent Incurred within 12 months of the Horizon Acquisition and in an aggregate Amount not to exceed $50,000,000 during the term of the Credit Agreement

8.                                      Non-cash stock-based compensation

9.                                      Matson Alaska EBITDA contribution(1)

10.                               Consolidated EBITDA

B. Consolidated Interest Expense

1.                                      Interest, premium payments, debt discounts, fees, charges and related expenses in connection with borrowed money (including capitalized interest)

2.                                      Portion of rent expense under capital leases

3.                                      Consolidated Interest Expense

 

Consolidated Interest Coverage Ratio

     : 1.00

Minimum Permitted = 3.50 : 1

Covenant Compliance

Yes/No

 

II. Consolidated Leverage Ratio - Section 7.01(b)

A. All Debt of the Company and Subsidiaries on a consolidated basis

B. Consolidated EBITDA

 

Consolidated Leverage Ratio

       : 1.00

Maximum Permitted = 3.25 : 1

Covenant Compliance

Yes/No

 

III. Priority Debt - Section 7.01(c)

(including, without limitation, all Title XI and all Debt secured by marine assets)

 

B. Consolidated Tangible Assets

C. Priority Debt / Consolidated Tangible Assets

    %

 

Maximum Permitted = 20%

 

(1)  Insert the amounts specified in the definition of Consolidated EBITDA for the applicable period.

 

 

Covenant Compliance

Yes/No

 

D. Principal amount of Priority Debt that is not Title XI Priority Debt

C. Priority Debt / Consolidated Tangible Assets

     %

 

Maximum Permitted = 10%

Covenant Compliance

Yes/No

 

IV. Sale of Capital Assets - Section 7.05

A. Amount of Capital Assets dispositions by Matson Navigation during the twelve-month period

B. Total value of consolidated assets of the Borrower As of December, 31, 2014

	
C. IV A / IV B
    	
%
    

 

Maximum Permitted = 10%

Covenant Compliance

Yes/No

 

D. All Capital Assets sold or otherwise disposed of subsequent to December 31, 2014

	
E. IV D / IV B
    	
    %
    

 

Maximum Permitted = 30%

Covenant Compliance

Yes/No

 

V. Consolidated Net Leverage Ratio

A. All Net Debt of the Company and Subsidiaries on a consolidated basis

1.                                      Debt of the Borrower and its Subsidiaries

2.                                      unrestricted cash and cash equivalents

3.                                      60% of the amount in the CCF

4.                                      $15,000,000

5.                                      Net Debt

B. Consolidated EBITDA

 

Consolidated Net Leverage Ratio

       : 1.00

 

 

Exhibit I

 

FORM OF NOTICE OF LOAN PREPAYMENT

 

DATE:                     ,

 

TO:                           Bank of America, N.A., as [Agent][and Swing Line Lender]

 

Reference is hereby made to that certain Credit Agreement, dated as of June 4, 2012 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Matson, Inc., a Hawaii corporation (the “Borrower”), the Lenders from time to time party thereto, and Bank of America, N.A., as Agent.  Capitalized terms used but not otherwise defined herein have the meanings provided in the Credit Agreement.

 

The Borrower hereby notifies the [Agent][and the Swing Line Lender] that on              , pursuant to the terms of Section 2.05 of the Credit Agreement, that the Borrower intends to prepay/repay the following Loans as more specifically set forth below [subject to the conditions set forth below]:

 

o                                    Voluntary prepayment of Loan[s] in the following amount(s):

 

o                                    Eurodollar Loans: $

Applicable Interest Period(s):

 

o                                    Base Rate Loans: $

 

o                                    Voluntary prepayment of Swing Line Loans in the following amount(s): $

 

[Any conditions to prepayment to be inserted here per Section 2.05 of the Credit Agreement.]

 

[Signature page follows]

 

 

The Borrower has caused this Notice of Loan Prepayment to be duly executed and delivered as of the date first above written.

 

	
 
    	
MATSON, INC.,
    
	
 
    	
a Hawaii corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

 

Exhibit J -1

 

[FORM OF] SECURITY AGREEMENT

 

Vessel Type Aloha Class — Hull No. 29

 

SECURITY AGREEMENT dated             , 2015, between Matson Navigation Company, Inc. (the “Obligor”) and Bank of America, N.A., in its capacity as Collateral Agent (“Collateral Agent”) for the benefit of the Secured Parties (as defined below).

 

Reference is made to (i) the Credit Agreement dated as of June 4, 2012 (the “Credit Agreement”) among the Obligor, Bank of America, N.A., as administrative agent, and the lenders party thereto (together with their respective successors, transferees and assigns, the “Lenders”), as modified by that certain Assignment and Assumption Agreement dated as of June 28, 2012 among Alexander & Baldwin Holdings, Inc., the Obligor and Bank of America, N.A. and as amended by that certain First Amendment to Credit Agreement dated as of July 30, 2015, (ii) Second Amended and Restated Note Agreement dated as of June 4, 2012 (the “Prudential Note Agreement”) by and among the Obligor and certain purchasers party thereto (together with their respective successors, transferees and assigns, the “Prudential Purchasers”), as modified by that certain Company Assignment, Assumption and Release Agreement dated as of June 29, 2012 among Matson, Inc., the Obligor and the purchasers party thereto, and as amended by that certain Amendment to Second Amended and Restated Note Agreement dated as of July 30, 2015, (iii) the Guaranty Agreement dated as of June 28, 2012 (the “Credit Agreement Guaranty”) executed by  the Obligor, Matson Logistics, Inc., Matson Terminals, Inc. and Matson Ventures, Inc.(2) (collectively, the “Guarantors”), (iv) the Multiparty Guaranty dated as of June 29, 2012 (the “Prudential Guaranty”) executed by the Guarantors, (v) the Multiparty Guaranty dated as of January 28, 2014 (the “NYL Guaranty” and, together with the Credit Agreement Guaranty and the Prudential Guaranty, the “Guaranties”) executed by the Guarantors, (vi) the Note Agreement dated as of November 5, 2013 (the “NYL Note Agreement” and, collectively with the Credit Agreement and the Prudential Note Agreement, the “Financing Agreements”)(3) by and among Matson, Inc. and the purchasers party thereto (together with their respective successors, transferees and assigns, the “NYL Purchasers” and, collectively with the Lenders and the Prudential Purchasers, the “Secured Parties”), as amended by that certain First Amendment to Note Purchase Agreement dated as of July 30, 2015 and (vii) the Intercreditor and Collateral Agency Agreement dated as of the date hereof among the Secured Parties and the Collateral Agent (the “Intercreditor Agreement”).

 

1.                                      GENERAL DEFINITIONS.

 

1.1                               As used herein, “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York.

 

1.2                               All capitalized terms contained in this Agreement, but not specifically defined in this Agreement, shall have the meanings provided by the UCC to the extent the same are used or defined therein.

 

2.                                      OBLIGATIONS SECURED.  The Collateral (as defined below) shall secure any and all obligations of the Obligor to or for the benefit of the Secured Parties under the Guaranties, whether now existing or hereafter arising, joint or several, absolute or contingent, liquidated or unliquidated, and however arising (all such indebtedness, obligations and liabilities of the Obligor under the Guaranties 

 

(2)                                 To be updated for any additional guarantors.

(3)                                 To be updated for any additional Note Purchase Agreements and related guaranties.

 

 

being collectively referred to herein as the “Guaranty Obligations”; and the Financing Agreements, together with any agreement, instrument, guaranty or other document now or hereafter evidencing or securing any of the Guaranty Obligations, being collectively referred to herein as the “Financing Documents”).

 

3.                                      GRANT OF SECURITY INTEREST.  To secure the punctual payment and performance of the Guaranty Obligations when due (whether at the stated maturity, by acceleration, demand or otherwise), the Obligor effective as of the date hereof (the “Granting Date”) hereby grants to the Collateral Agent for the benefit of the Secured Parties a security interest in and to, and a lien upon (the “Security Interest”), all right, title and interest of the Obligor in and to the following property, whether now owned and existing or hereafter acquired or arising, and wherever located (collectively, the “Collateral”):

 

(a)                                 that certain Shipbuilding Contract (Vessel Type Aloha Class — Hull No. 29) by and between Aker Philadelphia Shipyard, Inc. and Matson Navigation Company, Inc. dated as of November 6, 2013 (the “Shipbuilding Contract”);

 

(b)                                 any personal property assets constituting (i) work in process under the Shipbuilding Contract, including without limitation, the applicable partially-constructed vessel, (ii) Buyer’s Supplies (as defined in the Shipbuilding Contract), and (iii) any Goods, Inventory and material the Obligor has title to under the Shipbuilding Contract; and

 

(c)                                  all Proceeds of any of such property in whatever form, whether derived from voluntary or involuntary disposition, all products of any of such property, all renewals, replacements, substitutions, and additions to or from any such property.

 

The Security Interest created herein shall be subject to any applicable restriction to the creation of a Security Interest to the extent that such restriction is not made ineffective by UCC Sections 9-406, 9-407, 9-408, or 9-409.

 

4.                                      REPRESENTATIONS AND WARRANTIES.  The Obligor represents and warrants that:

 

4.1                               Authority.  The Obligor has full power and authority to grant security interests in the Collateral, to execute and deliver this Agreement, and to perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other person except as may have been specifically disclosed to the Secured Parties in writing.

 

4.2                               Information Regarding Names.  The Obligor has disclosed to the Secured Parties in Schedule I hereto complete and correct information regarding the Obligor’s exact legal name, type of organization and jurisdiction of incorporation.

 

5.                                      COVENANTS AND AGREEMENTS OF THE OBLIGOR.  The Obligor covenants and agrees as follows:

 

5.1                               Information Regarding Names.  At least 10 days (or such shorter period of time approved in writing by the Collateral Agent) before changing its name or adopting a new name, the Obligor shall give written notice to the Collateral Agent of any new name of the Obligor.

 

5.2                               Further Assurances and Authority of Collateral Agent.  The Obligor shall from time to time on and after the Granting Date execute, deliver, file and record all such further agreements, instruments, financing statements, notices and other documents (including any information necessary to

 

 

update Schedule I hereto) as may be reasonably requested by the Collateral Agent to perfect or preserve the Security Interest, to enable the Collateral Agent to notify any third parties of the existence of the Collateral Agent’s Security Interest, or otherwise to carry out the intent of this Agreement.  On and after the Granting Date, the Obligor authorizes the Collateral Agent to file financing statements where desirable in the Collateral Agent’s judgment to perfect the Security Interest under the UCC without the signature of the Obligor.

 

6.                                      RELEASE OF COLLATERAL; TERMINATION OF AGREEMENT.  Provided that no Event of Default under any of the Financing Agreements has then occurred and is continuing, upon the earlier of (a) delivery of the Vessel (as defined in the Shipbuilding Contract) to the Obligor and (b) delivery of a written Notice of Termination of Security Interest from the Obligor to the Collateral Agent in substantially the form set forth as Exhibit A hereto (which the Obligor may deliver to the Collateral Agent at any time in its sole discretion with or without the occurrence or happening of any event and without any further action on the part of any party hereto, but, as an abundance of caution, subject to the proviso at the beginning of this sentence), the Security Interest in the Collateral shall be automatically terminated and released, and this Security Agreement shall automatically terminate and no longer be of any force or effect without any further action of any party.  The Collateral Agent agrees, at the sole expense of the Obligor, to promptly file UCC amendments and execute and deliver any other documents or instruments reasonably requested by Obligor to evidence the termination of the Security Interest so released.

 

7.                                      RIGHTS AND REMEDIES OF THE SECURED PARTIES UPON EVENT OF DEFAULT.

 

7.1                               Effect of Event of Default Remedies.  If any Event of Default described in the Financing Documents shall occur and be continuing, the Collateral Agent shall have all of the rights, powers and remedies with respect to the Collateral of a secured party under the Uniform Commercial Code of the state in which such rights, powers and remedies are asserted.

 

7.2                               Application of Proceeds.  Subject to the rights of any prior secured party, any proceeds received by the Secured Parties in respect of any sale of collection from, or other realization upon all or any part of the Collateral following the occurrence of an Event of Default shall be applied as set forth in the Intercreditor Agreement.

 

7.3                               Notice.  Any notice required to be given by the Collateral Agent of a sale, lease, or other disposition of Collateral, or any other intended action by the Collateral Agent, which is sent pursuant to Section 11 hereof at least ten (10) days prior to such proposed action, or such longer period as shall be specified by applicable law, shall constitute commercially reasonable and fair notice thereof to the Obligor.

 

8.                                      REMEDIES NOT EXCLUSIVE; FORECLOSURES.  No right or remedy hereunder is exclusive of any other right or remedy.  Each and every right and remedy shall be cumulative and shall be in addition to and without prejudice to every other remedy given hereunder, under any other agreement between the Obligor and the Collateral Agent or now or hereafter existing at law or in equity, and may be exercised from time to time as often as deemed expedient, separately or concurrently.  The giving, taking or enforcement of or execution against any other or additional security, collateral, or guaranty for the payment of the Guaranty Obligations shall not operate to prejudice, waive or affect any rights, powers or remedies hereunder, nor shall the Collateral Agent be required to first look to, enforce, exhaust or execute against such other or additional security, or guarantees prior to so acting against the Collateral.  The Collateral Agent may foreclose on or execute against the items of Collateral in such order as the Collateral Agent may, in its sole and unfettered discretion, determine.

 

 

9.                                      WAIVERS.  The failure or delay of the Collateral Agent to insist in any instances upon the performance of any of the terms, covenants or conditions of this Agreement or other Financing Documents, or to exercise any right, remedy or privilege herein or therein conferred, shall not impair or be construed as thereafter waiving any such covenants, remedies, conditions or provisions, but every such term, condition and covenant shall continue and remain in full force and effect; nor shall any waiver of an Event of Default suspend, waive or affect any other Event of Default, whether the same is prior or subsequent thereto and whether of the same or of a different type.

 

10.                               SEVERABILITY.  Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective.  If any provision of this Agreement shall be held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Agreement.

 

11.                               NOTICE.  All notices, demands and communications hereunder shall be in writing and shall be by messenger or overnight air courier, facsimile transmission, e-mail or United States mail and shall be deemed to have been given when delivered (or, if such day is not a business day, the next occurring business day) by messenger or overnight air courier, upon completion of facsimile transmission or e-mail (with, in each case, electronic confirmation of receipt) or two business days after deposit in the United States mail, registered or certified, with postage prepaid, addressed to the parties at the addresses set forth on the signature page hereof, or at such other address as any party shall have furnished to the other parties in writing in accordance with the requirements of this Section 11.

 

12.                               GOVERNING LAW.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

13.                               WAIVERS BY THE OBLIGOR.  Except as otherwise expressly provided in this Agreement or the other Financing Documents, the Obligor waives:  (i) presentment, demand, and protest and notice of presentment, protest, default, non-payment, maturity, release, compromise, settlement, extension, or renewal of any or all Financing Documents under or pursuant to which the Obligor may in any way be liable and hereby ratifies and confirms whatever the Collateral Agent or Secured Parties may do in this regard; (ii) notice prior to taking possession or control of Collateral or any bond or security that might be required by any court prior to allowing the Collateral Agent to exercise any remedies; (iii) the benefit of all valuation, appraisement, and exemption laws; (iv) any right to require the Collateral Agent to proceed against any other person or collateral held from any other person; (v) any right to require the Collateral Agent to pursue any other remedy in the Collateral Agent’s power whatsoever; or (vi) any defense arising out of any election by Collateral Agent to exercise or not exercise any right or remedy it may have against the Obligor, any other person or any security held by it, even though such election operates to impair or extinguish any right of reimbursement to subrogation or other right or remedy of the Obligor against any other person or any such security.

 

14.                               ADDITIONAL SECURED PARTIES.  If any Loan Party enters into any other Note Purchase Agreement (as defined in the Credit Agreement), then, upon written notice by the Obligor to the Collateral Agent and the Secured Parties, the holders of the indebtedness under such Note Purchase Agreements shall become additional Secured Parties (each, an “Additional Secured Party”) hereunder.  Effective upon such notice, each Additional Secured Party shall have the same rights and obligations as the other Secured Parties hereunder and the term “Secured Parties” as used herein shall be deemed to include each such Additional Secured Party.  Notwithstanding Section 15.2, no consent of the Collateral Agent or any Secured Party shall be necessary to add such holders as additional Secured Parties.

 

 

15.                               MISCELLANEOUS.  The Obligor agrees that the following shall govern the interpretation and enforcement of this Agreement:

 

15.1                        Binding on Successors.  This Agreement shall be binding upon the Obligor, the administrators, successors and assigns of the Obligor, and shall inure to the benefit of and be enforceable by the Collateral Agent, its successors, transferees and assigns.

 

15.2                        No Oral Modifications.  None of the terms or provisions of this Agreement may be waived, altered, modified, limited or amended except pursuant to the agreement thereto of the parties hereto in writing.

 

15.3                        Section Titles.  The section titles contained in this Agreement are merely for convenience and shall be without substantive meaning or content.

 

15.4                        Construction.  The word “including” shall have the inclusive meaning represented by the phrase “including without limitation.”  Unless the context of this Agreement clearly otherwise requires, the word “or” shall have the meaning represented by the phrase “and/or,” references to the plural include the singular and references to the singular include the plural.

 

16.                               WAIVER OF JURY TRIAL.  The Obligor and the Collateral Agent each irrevocably and unconditionally waive trial by jury in any action or proceeding relating to this Agreement or any other Financing Document and for any counterclaim therein.

 

 

IN WITNESS WHEREOF, this Agreement is executed and delivered as of the date first set forth above.

 

	
 
    	
OBLIGOR:
    
	
 
    	
 
    
	
 
    	
MATSON   NAVIGATION COMPANY, INC.
    
	
 
    	
a Hawaii corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
Name: [M. J. Cox]
    
	
 
    	
 
    
	
 
    	
Title: [President and   Chief Executive Officer]
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
555 12th Street, 8th Floor
    
	
 
    	
Oakland, CA 94067
    
	
 
    	
Attention: Chief Financial Officer
    
	
 
    	
Email:
    
	
 
    	
Fax:
    
	
 
    	
 
    
	
 
    	
COLLATERAL   AGENT:
    
	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
 
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
Bank of America, N.A.
    
	
 
    	
Port Orchard BC
    
	
 
    	
1497 Olney Ave. SE
    
	
 
    	
Port Orchard, WA 98366-4035
    
	
 
    	
Email: brenda.schriner@baml.com
    
	
 
    	
Fax: 415.343.0557
    

 

 

Schedule I

 

Legal Name, Type of Organization and Jurisdiction of Organization

 

Matson Navigation Company, Inc., a Hawaii corporation

 

 

Exhibit J -2

 

[FORM OF] SECURITY AGREEMENT

 

Vessel Type Aloha Class — Hull No. 30

 

SECURITY AGREEMENT dated       , 20  , between Matson Navigation Company, Inc. (the “Obligor”) and Bank of America, N.A., in its capacity as Collateral Agent (“Collateral Agent”) for the benefit of the Secured Parties (as defined below).

 

Reference is made to (i) the Credit Agreement dated as of June 4, 2012 (the “Credit Agreement”) among the Obligor, Bank of America, N.A., as administrative agent, and the lenders party thereto (together with their respective successors, transferees and assigns, the “Lenders”), as modified by that certain Assignment and Assumption Agreement dated as of June 28, 2012 among Alexander & Baldwin Holdings, Inc., the Obligor and Bank of America, N.A. and as amended by that certain First Amendment to Credit Agreement dated as of July 30, 2015, (ii) Second Amended and Restated Note Agreement dated as of June 4, 2012 (the “Prudential Note Agreement”) by and among the Obligor and certain purchasers party thereto (together with their respective successors, transferees and assigns, the “Prudential Purchasers”), as modified by that certain Company Assignment, Assumption and Release Agreement dated as of June 29, 2012 among Matson, Inc., the Obligor and the purchasers party thereto, and as amended by that certain Amendment to Second Amended and Restated Note Agreement dated as of July 30, 2015, (iii) the Guaranty Agreement dated as of June 28, 2012 (the “Credit Agreement Guaranty”) executed by the Obligor, Matson Logistics, Inc., Matson Terminals, Inc. and Matson Ventures, Inc.(4) (collectively, the “Guarantors”), (iv) the Multiparty Guaranty dated as of June 29, 2012 (the “Prudential Guaranty”) executed by the Guarantors, (v) the Multiparty Guaranty dated as of January 28, 2014 (the “NYL Guaranty” and, together with the Credit Agreement Guaranty and the Prudential Guaranty, the “Guaranties”) executed by the Guarantors, (vi) the Note Agreement dated as of November 5, 2013 (the “NYL Note Agreement” and, collectively with the Credit Agreement and the Prudential Note Agreement, the “Financing Agreements”)(5) by and among Matson, Inc. and the purchasers party thereto (together with their respective successors, transferees and assigns, the “NYL Purchasers” and, collectively with the Lenders and the Prudential Purchasers, the “Secured Parties”), as amended by that certain First Amendment to Note Purchase Agreement dated as of July 30, 2015 and (vii) the Intercreditor and Collateral Agency Agreement dated as of the date hereof among the Secured Parties and the Collateral Agent (the “Intercreditor Agreement”).

 

1.                                      GENERAL DEFINITIONS.

 

1.1                               As used herein, “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York.

 

1.2                               All capitalized terms contained in this Agreement, but not specifically defined in this Agreement, shall have the meanings provided by the UCC to the extent the same are used or defined therein.

 

2.                                      OBLIGATIONS SECURED.  The Collateral (as defined below) shall secure any and all obligations of the Obligor to or for the benefit of the Secured Parties under the Guaranties, whether now 

 

(4)                                 To be updated for any additional guarantors.

(5)                                 To be updated for any additional Note Purchase Agreements and related guaranties.

 

 

existing or hereafter arising, joint or several, absolute or contingent, liquidated or unliquidated, and however arising (all such indebtedness, obligations and liabilities of the Obligor under the Guaranties being collectively referred to herein as the “Guaranty Obligations”; and the Financing Agreements, together with any agreement, instrument, guaranty or other document now or hereafter evidencing or securing any of the Guaranty Obligations, being collectively referred to herein as the “Financing Documents”).

 

3.                                      GRANT OF SECURITY INTEREST.  To secure the punctual payment and performance of the Guaranty Obligations when due (whether at the stated maturity, by acceleration, demand or otherwise), the Obligor effective as of the date hereof (the “Granting Date”) hereby grants to the Collateral Agent for the benefit of the Secured Parties a security interest in and to, and a lien upon (the “Security Interest”), all right, title and interest of the Obligor in and to the following property, whether now owned and existing or hereafter acquired or arising, and wherever located (collectively, the “Collateral”):

 

(a)                                 that certain Shipbuilding Contract (Vessel Type Aloha Class — Hull No. 30) by and between Aker Philadelphia Shipyard, Inc. and Matson Navigation Company, Inc. dated as of November 6, 2013 (the “Shipbuilding Contract”);

 

(b)                                 any personal property assets constituting (i) work in process under the Shipbuilding Contract, including without limitation, the applicable partially-constructed vessel, (ii) Buyer’s Supplies (as defined in the Shipbuilding Contract), and (iii) any Goods, Inventory and material the Obligor has title to under the Shipbuilding Contract; and

 

(c)                                  all Proceeds of any of such property in whatever form, whether derived from voluntary or involuntary disposition, all products of any of such property, all renewals, replacements, substitutions, and additions to or from any such property..

 

The Security Interest created herein shall be subject to any applicable restriction to the creation of a Security Interest to the extent that such restriction is not made ineffective by UCC Sections 9-406, 9-407, 9-408, or 9-409.

 

4.                                      REPRESENTATIONS AND WARRANTIES.  The Obligor represents and warrants that:

 

4.1                               Authority.  The Obligor has full power and authority to grant security interests in the Collateral, to execute and deliver this Agreement, and to perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other person except as may have been specifically disclosed to the Secured Parties in writing.

 

4.2                               Information Regarding Names.  The Obligor has disclosed to the Secured Parties in Schedule I hereto complete and correct information regarding the Obligor’s exact legal name, type of organization and jurisdiction of incorporation.

 

5.                                      COVENANTS AND AGREEMENTS OF THE OBLIGOR.  The Obligor covenants and agrees as follows:

 

5.1                               Information Regarding Names.  At least 10 days (or such shorter period of time approved in writing by the Collateral Agent) before changing its name or adopting a new name, the Obligor shall give written notice to the Collateral Agent of any new name of the Obligor.

 

 

5.2                               Further Assurances and Authority of Collateral Agent.  The Obligor shall from time to time on and after the Granting Date execute, deliver, file and record all such further agreements, instruments, financing statements, notices and other documents (including any information necessary to update Schedule I hereto) as may be reasonably requested by the Collateral Agent to perfect or preserve the Security Interest, to enable the Collateral Agent to notify any third parties of the existence of the Collateral Agent’s Security Interest, or otherwise to carry out the intent of this Agreement.  On and after the Granting Date, the Obligor authorizes the Collateral Agent to file financing statements where desirable in the Collateral Agent’s judgment to perfect the Security Interest under the UCC without the signature of the Obligor.

 

6.                                      RELEASE OF COLLATERAL; TERMINATION OF AGREEMENT.  Provided that no Event of Default under any of the Financing Agreements has then occurred and is continuing, upon the earlier of (a) delivery of the Vessel (as defined in the Shipbuilding Contract) to the Obligor and (b) delivery of a written Notice of Termination of Security Interest from the Obligor to the Collateral Agent in substantially the form set forth as Exhibit A hereto (which the Obligor may deliver to the Collateral Agent at any time in its sole discretion with or without the occurrence or happening of any event and without any further action on the part of any party hereto, but, as an abundance of caution, subject to the proviso at the beginning of this sentence), the Security Interest in the Collateral shall be automatically terminated and released, and this Security Agreement shall automatically terminate and no longer be of any force or effect without any further action of any party.  The Collateral Agent agrees, at the sole expense of the Obligor, to promptly file UCC amendments and execute and deliver any other documents or instruments reasonably requested by Obligor to evidence the termination of the Security Interest so released.

 

7.                                      RIGHTS AND REMEDIES OF THE SECURED PARTIES UPON EVENT OF DEFAULT.

 

7.1                               Effect of Event of Default Remedies.  If any Event of Default described in the Financing Documents shall occur and be continuing, the Collateral Agent shall have all of the rights, powers and remedies with respect to the Collateral of a secured party under the Uniform Commercial Code of the state in which such rights, powers and remedies are asserted.

 

7.2                               Application of Proceeds.  Subject to the rights of any prior secured party, any proceeds received by the Secured Parties in respect of any sale of collection from, or other realization upon all or any part of the Collateral following the occurrence of an Event of Default shall be applied as set forth in the Intercreditor Agreement.

 

7.3                               Notice.  Any notice required to be given by the Collateral Agent of a sale, lease, or other disposition of Collateral, or any other intended action by the Collateral Agent, which is sent pursuant to Section 11 hereof at least ten (10) days prior to such proposed action, or such longer period as shall be specified by applicable law, shall constitute commercially reasonable and fair notice thereof to the Obligor.

 

8.                                      REMEDIES NOT EXCLUSIVE; FORECLOSURES.  No right or remedy hereunder is exclusive of any other right or remedy.  Each and every right and remedy shall be cumulative and shall be in addition to and without prejudice to every other remedy given hereunder, under any other agreement between the Obligor and the Collateral Agent or now or hereafter existing at law or in equity, and may be exercised from time to time as often as deemed expedient, separately or concurrently.  The giving, taking or enforcement of or execution against any other or additional security, collateral, or guaranty for the payment of the Guaranty Obligations shall not operate to prejudice, waive or affect any rights, powers or remedies hereunder, nor shall the Collateral Agent be required to first look to, enforce, exhaust or execute

 

 

against such other or additional security, or guarantees prior to so acting against the Collateral.  The Collateral Agent may foreclose on or execute against the items of Collateral in such order as the Collateral Agent may, in its sole and unfettered discretion, determine.

 

9.                                      WAIVERS.  The failure or delay of the Collateral Agent to insist in any instances upon the performance of any of the terms, covenants or conditions of this Agreement or other Financing Documents, or to exercise any right, remedy or privilege herein or therein conferred, shall not impair or be construed as thereafter waiving any such covenants, remedies, conditions or provisions, but every such term, condition and covenant shall continue and remain in full force and effect; nor shall any waiver of an Event of Default suspend, waive or affect any other Event of Default, whether the same is prior or subsequent thereto and whether of the same or of a different type.

 

10.                               SEVERABILITY.  Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective.  If any provision of this Agreement shall be held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Agreement.

 

11.                               NOTICE.  All notices, demands and communications hereunder shall be in writing and shall be by messenger or overnight air courier, facsimile transmission, e-mail or United States mail and shall be deemed to have been given when delivered (or, if such day is not a business day, the next occurring business day) by messenger or overnight air courier, upon completion of facsimile transmission or e-mail (with, in each case, electronic confirmation of receipt) or two business days after deposit in the United States mail, registered or certified, with postage prepaid, addressed to the parties at the addresses set forth on the signature page hereof, or at such other address as any party shall have furnished to the other parties in writing in accordance with the requirements of this Section 11.

 

12.                               GOVERNING LAW.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

 

13.                               WAIVERS BY THE OBLIGOR.  Except as otherwise expressly provided in this Agreement or the other Financing Documents, the Obligor waives:  (i) presentment, demand, and protest and notice of presentment, protest, default, non-payment, maturity, release, compromise, settlement, extension, or renewal of any or all Financing Documents under or pursuant to which the Obligor may in any way be liable and hereby ratifies and confirms whatever the Collateral Agent or Secured Parties may do in this regard; (ii) notice prior to taking possession or control of Collateral or any bond or security that might be required by any court prior to allowing the Collateral Agent to exercise any remedies; (iii) the benefit of all valuation, appraisement, and exemption laws; (iv) any right to require the Collateral Agent to proceed against any other person or collateral held from any other person; (v) any right to require the Collateral Agent to pursue any other remedy in the Collateral Agent’s power whatsoever; or (vi) any defense arising out of any election by Collateral Agent to exercise or not exercise any right or remedy it may have against the Obligor, any other person or any security held by it, even though such election operates to impair or extinguish any right of reimbursement to subrogation or other right or remedy of the Obligor against any other person or any such security.

 

14.                               ADDITIONAL SECURED PARTIES.  If any Loan Party enters into any other Note Purchase Agreement (as defined in the Credit Agreement), then, upon written notice by the Obligor to the Collateral Agent and the Secured Parties, the holders of the indebtedness under such Note Purchase Agreements shall become additional Secured Parties (each, an “Additional Secured Party”) hereunder.  Effective upon such notice, each Additional Secured Party shall have the same rights and obligations as the other Secured Parties hereunder and the term “Secured Parties” as used herein shall be deemed to include each such Additional Secured Party.  Notwithstanding Section 15.2, no consent of the Collateral Agent or any Secured Party shall be necessary to add such holders as additional Secured Parties.

 

 

15.                               MISCELLANEOUS.  The Obligor agrees that the following shall govern the interpretation and enforcement of this Agreement:

 

15.1                        Binding on Successors.  This Agreement shall be binding upon the Obligor, the administrators, successors and assigns of the Obligor, and shall inure to the benefit of and be enforceable by the Collateral Agent, its successors, transferees and assigns.

 

15.2                        No Oral Modifications.  None of the terms or provisions of this Agreement may be waived, altered, modified, limited or amended except pursuant to the agreement thereto of the parties hereto in writing.

 

15.3                        Section Titles.  The section titles contained in this Agreement are merely for convenience and shall be without substantive meaning or content.

 

15.4                        Construction.  The word “including” shall have the inclusive meaning represented by the phrase “including without limitation.”  Unless the context of this Agreement clearly otherwise requires, the word “or” shall have the meaning represented by the phrase “and/or,” references to the plural include the singular and references to the singular include the plural.

 

16.                               WAIVER OF JURY TRIAL.  The Obligor and the Collateral Agent each irrevocably and unconditionally waive trial by jury in any action or proceeding relating to this Agreement or any other Financing Document and for any counterclaim therein.

 

 

IN WITNESS WHEREOF, this Agreement is executed and delivered as of the date first set forth above.

 

	
 
    	
OBLIGOR:
    
	
 
    	
 
    
	
 
    	
MATSON   NAVIGATION COMPANY, INC.
    
	
 
    	
a Hawaii corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
Name: [M. J. Cox]
    
	
 
    	
 
    
	
 
    	
Title: [President and   Chief Executive Officer]
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
555 12th Street, 8th Floor
    
	
 
    	
Oakland, CA 94067
    
	
 
    	
Attention: Chief Financial Officer
    
	
 
    	
Email:
    
	
 
    	
Fax:
    
	
 
    	
 
    
	
 
    	
COLLATERAL   AGENT:
    
	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
 
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
Bank of America, N.A.
    
	
 
    	
Port Orchard BC
    
	
 
    	
1497 Olney Ave. SE
    
	
 
    	
Port Orchard, WA 98366-4035
    
	
 
    	
Email: brenda.schriner@baml.com
    
	
 
    	
Fax: 415.343.0557
    

 

 

Schedule I

 

Legal Name, Type of Organization and Jurisdiction of Organization

 

Matson Navigation Company, Inc., a Hawaii corporation

 

 

Exhibit A

 

Notice of Termination of Security Interest

 

[                ], 20[   ]

 

[Address of Collateral Agent]

 

Re:                             Security Agreement dated [                ], 20[  ] (Vessel Type Aloha Class — Hull No. 30) (the “Security Agreement”) between Matson Navigation Company, Inc. (the “Company”) and Bank of America, N.A as Collateral Agent

 

Ladies and Gentlemen:

 

The Company hereby notifies you that, effective as of the date hereof, the Security Interest (as defined in the Security Agreement) is terminated.

 

Very truly yours,

 

 

	
MATSON   NAVIGATION COMPANY, INC.
    	
 
    
	
a Hawaii corporation
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Title:EX-10.1

 Exhibit 10.1 

Freddie Mac Loan Number: 504193775 

Property Name: Alexis Gardens 

MULTIFAMILY LOAN AND SECURITY AGREEMENT – SENIORS HOUSING 

(Revised 5-20-2015) 
  

			
	Borrower:	  	SNR 27 ALEXIS GARDENS OWNER LLC, a Delaware limited liability company
		
	Lender:	  	WALKER & DUNLOP, LLC, a Delaware limited liability company
		
	Date:	  	August 12, 2015
		
	Loan Amount:	  	$17,384,000.00

  
  

Reserve Fund Information 

(See Article IV) 
  

 
 Imposition Reserves (fill in
“Collect” or “Deferred” as appropriate for each item) 
  

			
	    Collect	    	Insurance
	    Collect	    	Taxes
	    Deferred	    	water/sewer
	    N/A	    	Ground Rents
	    Deferred    	    	assessments/other charges

  
  

 

							
	Repairs & Repair Reserve	  	Repairs required?	  	x  Yes	  	 ̈  No
		  	If No, is radon testing required?	  	 ̈  Yes	  	 ̈  No
		  	If Yes, is a Reserve required?	  	 ̈  Yes	  	x  No
	If Yes to Repairs, but No Reserve, is a Letter of Credit required?	  	 ̈  Yes	  	x  No

  
  

 

							
	Replacement Reserve	  	x  Yes                If
Yes:  x  Funded   ̈  Deferred
		  	 ̈  No	  		  	

  
  

 

							
	Rental Achievement Reserve	  	 ̈  Yes                If
Yes:   ̈  Cash     ̈  Letter of Credit
		  	x  No	  		  	

  
  

 

					
	Cap Agreement Reserve (Cap Collateral)	  	 ̈  Yes            x  No

  
  

 

							
	Other Reserve(s)	  	 ̈  Yes            x  No

  

			
	If Yes, specify: 	 	  

  
  

 Attached Riders 

(See Article XIII) 
  

 
  

			
	 Name of Rider
	  	 Date Revised

	 Rider to Multifamily Loan and Security Agreement – Repairs – No Repair Reserve Established
	  	5-1-2015
	 Rider to Multifamily Loan and Security Agreement – Replacement Reserve Fund – Immediate Deposits
	  	7-1-2014
	 Rider to Multifamily Loan and Security Agreement – Cooperation with Rating Agencies and Investors
	  	1-27-2015
	 Rider to Multifamily Loan and Security Agreement – Entity Guarantor
	  	3-1-2014
	 Rider to Multifamily Loan and Security Agreement – Additional Provisions – Sale or Securitization of Loan
	  	2-28-2015
	 Rider to Multifamily Loan and Security Agreement – Month to Month Leases
	  	5-1-2015
	 Rider to Multifamily Loan and Security Agreement – Cross-Collateralized Transaction
	  	5-1-2015
	 Rider to Multifamily Loan and Security Agreement – Trade Names
	  	3-1-2014
	 Rider to Multifamily Loan and Security Agreement – Recycled Borrower (Converted Entity)
	  	5-1-2015

  
  

Exhibit B Modifications 

(See Article XIV) 
  

 
  

					
	Are any Exhibit B modifications attached?	  	x  Yes	  	 ̈  No

  
  

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page ii

 TABLE OF CONTENTS 

 

					
	ARTICLE I                    DEFINED TERMS; CONSTRUCTION	  	
	1.01	 	 Defined Terms
	  	
	1.02	 	 Construction
	  	
		
	ARTICLE II                   LOAN	  	
	2.01	 	 Loan Terms
	  	
	2.02	 	 Prepayment Premium
	  	
	2.03	 	 Exculpation
	  	
	2.04	 	 Application of Payments
	  	
	2.05	 	 Usury Savings
	  	
	2.06	 	 Floating Rate Mortgage – Third Party Cap Agreement
	  	
		
	ARTICLE III                  LOAN SECURITY AND GUARANTY	  	
	3.01	 	 Security Instrument
	  	
	3.02	 	 Reserve Funds
	  	
	3.03	 	 Uniform Commercial Code Security Agreement
	  	
	3.04	 	 Cap Agreement and Cap Collateral Assignment
	  	
	3.05	 	 Guaranty
	  	
	3.06	 	 Assignment of Licenses, Certificates and Permits
	  	
	3.07	 	 Reserved
	  	
	3.08	 	 Reserved
	  	
		
	ARTICLE IV                  RESERVE FUNDS AND REQUIREMENTS	  	
	4.01	 	 Reserves Generally
	  	
	4.02	 	 Reserves for Taxes, Insurance and Other Charges
	  	
	4.03	 	 Repairs; Repair Reserve Fund
	  	
	4.04	 	 Replacement Reserve Fund
	  	
	4.05	 	 Rental Achievement Provisions
	  	
	4.06	 	 Debt Service Reserve
	  	
	4.07	 	 Rate Cap Agreement Reserve Fund
	  	
	4.08	 	 Reserved
	  	
	4.09	 	 Reserved
	  	
		
	ARTICLE V                   REPRESENTATIONS AND WARRANTIES	  	
	5.01	 	 Review of Documents
	  	
	5.02	 	 Condition of Mortgaged Property
	  	
	5.03	 	 No Condemnation
	  	
	5.04	 	 Actions; Suits; Proceedings
	  	
	5.05	 	 Environmental
	  	
	5.06	 	 Commencement of Work; No Labor or Materialmen’s Claims
	  	
	5.07	 	 Compliance with Applicable Laws and Regulations
	  	
	5.08	 	 Access; Utilities; Tax Parcels
	  	
	5.09	 	 Licenses and Permits
	  	
	5.10	 	 No Other Interests
	  	

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page iii

					
	5.11	 	 Term of Leases
	  	
	5.12	 	 No Prior Assignment; Prepayment of Rents
	  	
	5.13	 	 Illegal Activity
	  	
	5.14	 	 Taxes Paid
	  	
	5.15	 	 Title Exceptions
	  	
	5.16	 	 No Change in Facts or Circumstances
	  	
	5.17	 	 Financial Statements
	  	
	5.18	 	 ERISA – Borrower Status
	  	
	5.19	 	 No Fraudulent Transfer or Preference
	  	
	5.20	 	 No Insolvency or Judgment
	  	
	5.21	 	 Working Capital
	  	
	5.22	 	 Cap Collateral
	  	
	5.23	 	 Ground Lease
	  	
	5.24	 	 Purpose of Loan
	  	
	5.25	 	 Intended Use
	  	
	5.26	 	 Furniture, Fixtures, Equipment, and Motor Vehicles
	  	
	5.27	 	 Participant in Federal Programs
	  	
	5.28	 	 Certificate of Need
	  	
	5.29	 	 Contracts
	  	
	5.30	 	 Material Contracts
	  	
	5.31	 	 No Financing Statements
	  	
	5.32	 	 Medicare and Medicaid
	  	
	5.33	 	 Third-Party Payor Programs and Private Commercial Insurance Managed Care and Employee Assistance Programs
	  	
	5.34	 	 No Transfer or Pledge of Licenses
	  	
	5.35	 	 No Pledge of Receivables
	  	
	5.36	 	 Patient and Resident Care Agreements
	  	
	5.37	 	 Patient and Resident Records
	  	
	5.38	 	 No Facility Deficiencies, Enforcement Actions or Violations
	  	
	5.39	 	 Seniors Housing Operator
	  	
	5.40	 	 Recycled SPE Borrower
	  	
	5.41	 	 Recycled SPE Equity Owner
	  	
	5.42	 	 Through 5.50 Are Reserved
	  	
	5.51	 	 Survival
	  	
	5.52	 	 Through 5.53 are Reserved
	  	
		
	
ARTICLE VI                  BORROWER
COVENANTS
	  	
	6.01	 	 Compliance with Laws
	  	
	6.02	 	 Compliance with Organizational Documents
	  	
	6.03	 	 Use of Mortgaged Property
	  	
	6.04	 	 Non-Residential Leases
	  	
	6.05	 	 Prepayment of Rents
	  	
	6.06	 	 Inspection
	  	
	6.07	 	 Books and Records; Financial Reporting
	  	
	6.08	 	 Taxes; Operating Expenses; Ground Rents
	  	
	6.09	 	 Preservation, Management and Maintenance of Mortgaged Property
	  	

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page iv

					
	6.10	 	 Insurance
	  	
	6.11	 	 Condemnation
	  	
	6.12	 	 Environmental Hazards
	  	
	6.13	 	 Single Purpose Entity Requirements
	  	
	6.14	 	 Repairs and Capital Replacements
	  	
	6.15	 	 Residential Leases Affecting the Mortgaged Property
	  	
	6.16	 	 Litigation; Government Proceedings
	  	
	6.17	 	 Further Assurances and Estoppel Certificates; Lender’s Expenses
	  	
	6.18	 	 Cap Collateral
	  	
	6.19	 	 Ground Lease
	  	
	6.20	 	 ERISA Requirements
	  	
	6.21	 	 Operation of the Facility
	  	
	6.22	 	 Facility Reporting
	  	
	6.23	 	 Covenants Regarding Material Contracts
	  	
	6.24	 	 Pledge of Receivables
	  	
	6.25	 	 Property Manager and Operator of the Facility
	  	
	6.26	 	 Residential Leases and Agreements
	  	
	6.27	 	 Performance Under Leases
	  	
	6.28	 	 Governmental Payor Programs
	  	
	6.29	 	 Additional Covenants Regarding Operator
	  	
	6.30	 	 Through 6.46 Are Reserved
	  	
		
	 ARTICLE VII               TRANSFERS OF
THE MORTGAGED PROPERTY OR INTERESTS IN BORROWER
	  	
	7.01	 	 Permitted Transfers
	  	
	7.02	 	 Prohibited Transfers
	  	
	7.03	 	 Conditionally Permitted Transfers
	  	
	7.04	 	 Preapproved Intrafamily Transfers
	  	
	7.05	 	 Lender’s Consent to Prohibited Transfers
	  	
	7.06	 	 SPE Equity Owner Requirement Following Transfer
	  	
	7.07	 	 Additional Transfer Requirements - External Cap Agreement
	  	
	7.08	 	 Reserved
	  	
	7.09	 	 Reserved
	  	
		
	
ARTICLE VIII              SUBROGATION.
	  	
		
	 ARTICLE IX                 EVENTS
OF DEFAULT AND REMEDIES
	  	
	9.01	 	 Events of Default
	  	
	9.02	 	 Protection of Lender’s Security; Security Instrument Secures Future Advances
	  	
	9.03	 	 Remedies
	  	
	9.04	 	 Forbearance
	  	
	9.05	 	 Waiver of Marshalling
	  	

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page v

					
	ARTICLE X                  RELEASE; INDEMNITY	  	
	10.01	 	 Release
	  	
	10.02	 	 Indemnity
	  	
	10.03	 	 Reserved
	  	
		
	
ARTICLE XI                 MISCELLANEOUS
PROVISIONS
	  	
	11.01	 	 Waiver of Statute of Limitations, Offsets and Counterclaims
	  	
	11.02	 	 Governing Law; Consent to Jurisdiction and Venue
	  	
	11.03	 	 Notice
	  	
	11.04	 	 Successors and Assigns Bound
	  	
	11.05	 	 Joint and Several (and Solidary) Liability
	  	
	11.06	 	 Relationship of Parties; No Third Party Beneficiary
	  	
	11.07	 	 Severability; Amendments
	  	
	11.08	 	 Disclosure of Information
	  	
	11.09	 	 Determinations by Lender
	  	
	11.10	 	 Sale of Note; Change in Servicer; Loan Servicing
	  	
	11.11	 	 Supplemental Financing
	  	
	11.12	 	 Defeasance
	  	
	11.13	 	 Lender’s Rights to Sell or Securitize
	  	
	11.14	 	 Cooperation with Rating Agencies and Investors
	  	
	11.15	 	 Letter of Credit Requirements
	  	
	11.16	 	 Through 11.18 are Reserved
	  	
	11.19	 	 State Specific Provisions
	  	
	11.20	 	 Time is of the Essence
	  	
		
	
ARTICLE XII               DEFINITIONS
	  	
		
	 ARTICLE XIII             INCORPORATION OF ATTACHED
RIDERS
	  	
		
	 ARTICLE XIV             INCORPORATION OF ATTACHED
EXHIBITS
	  	

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page vi

 MULTIFAMILY LOAN AND SECURITY AGREEMENT – SENIORS HOUSING 

THIS MULTIFAMILY LOAN AND SECURITY AGREEMENT (“Loan Agreement”) is dated as of the
12th day of August, 2015 and is made by and between SNR 27 ALEXIS GARDENS OWNER LLC, a Delaware limited liability company (“Borrower”), and WALKER & DUNLOP,
LLC, a Delaware limited liability company (together with its successors and assigns, “Lender”). 
 RECITAL

 Lender has agreed to make and Borrower has agreed to accept a loan in the original principal amount of $17,384,000.00 (“Loan”).
Lender is willing to make the Loan to Borrower upon the terms and subject to the conditions set forth in this Loan Agreement. 
 AGREEMENT

 NOW, THEREFORE, in consideration of these promises, the mutual covenants contained in this Loan Agreement and other good and valuable consideration,
the receipt and sufficiency of which are acknowledged, the parties agree as follows: 
  

	ARTICLE I	DEFINED TERMS; CONSTRUCTION. 

  

	1.01	Defined Terms. Each defined term in this Loan Agreement will have the meaning ascribed to that term in Article XII unless otherwise defined in this Loan Agreement. 

 

	1.02	Construction. 

  

	 	(a)	The captions and headings of the Articles and Sections of this Loan Agreement are for convenience only and will be disregarded in construing this Loan Agreement. 

 

	 	(b)	Any reference in this Loan Agreement to an “Exhibit,” an “Article” or a “Section” will, unless otherwise explicitly provided, be construed as referring, respectively, to an Exhibit attached
to this Loan Agreement or to an Article or Section of this Loan Agreement. 

  

	 	(c)	All Exhibits and Riders attached to or referred to in this Loan Agreement are incorporated by reference in this Loan Agreement. 

  

	 	(d)	Any reference in this Loan Agreement to a statute or regulation will be construed as referring to that statute or regulation as amended from time to time. 

 

	 	(e)	Use of the singular in this Loan Agreement includes the plural and use of the plural includes the singular. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 1

	 	(f)	As used in this Loan Agreement, the term “including” means “including, but not limited to” and the term “includes” means “includes without limitation.” 

 

	 	(g)	The use of one gender includes the other gender, as the context may require. 

  

	 	(h)	Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document in this Loan Agreement will be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth in this Loan Agreement), and (ii) any reference in this Loan Agreement to any
Person will be construed to include such Person’s successors and assigns. 

  

	 	(i)	Any reference in this Loan Agreement to “Lender’s requirements,” “as required by Lender,” or similar references will be construed, after Securitization, to mean Lender’s requirements or
standards as determined in accordance with Lender’s and Loan Servicer’s obligations under the terms of the Securitization documents. 

  

	ARTICLE II	LOAN. 

  

	2.01	Loan Terms. The Loan will be evidenced by the Note and will bear interest and be paid in accordance with the payment terms set forth in the Note. 

 

	2.02	Prepayment Premium. Borrower will be required to pay a prepayment premium in connection with certain prepayments of the Indebtedness, including a payment made after Lender’s exercise of any right of
acceleration of the Indebtedness, as provided in the Note. 

  

	2.03	Exculpation. Borrower’s personal liability for payment of the Indebtedness and for performance of the other obligations to be performed by it under this Loan Agreement is limited in the manner, and to the
extent, provided in the Note. 

  

	2.04	Application of Payments. If at any time Lender receives, from Borrower or otherwise, any amount applicable to the Indebtedness which is less than all amounts due and payable at such time, then Lender may apply
that payment to amounts then due and payable in any manner and in any order determined by Lender (unless otherwise required by applicable law), in Lender’s sole and absolute discretion. Neither Lender’s acceptance of an amount that is less
than all amounts then due and payable, nor Lender’s application of such payment in the manner authorized, will constitute or be deemed to constitute either a waiver of the unpaid amounts or an accord and satisfaction. Notwithstanding the
application of any such amount to the Indebtedness, Borrower’s obligations under this Loan Agreement, the Note and all other Loan Documents will remain unchanged. 

 

	2.05	 Usury Savings. If any applicable law limiting the amount of interest or other charges permitted to be collected from Borrower is interpreted so
that any charge provided for in any Loan Document, whether considered separately or together with other charges levied 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 2

	 	
in connection with any other Loan Document, violates that law, and Borrower is entitled to the benefit of that law, that charge is reduced to the extent necessary to eliminate that violation. The
amounts, if any, previously paid to Lender in excess of the permitted amounts will be applied by Lender to reduce the principal amount of the Indebtedness. For the purpose of determining whether any applicable law limiting the amount of interest or
other charges permitted to be collected from Borrower has been violated, all Indebtedness which constitutes interest, as well as all other charges levied in connection with the Indebtedness which constitute interest, will be deemed to be allocated
and spread ratably over the stated term of the Note. Unless otherwise required by applicable law, such allocation and spreading will be effected in such a manner that the rate of interest so computed is uniform throughout the stated term of the
Note. 

  

	2.06	Floating Rate Mortgage – Third Party Cap Agreement. If (a) the Note does not provide for interest to accrue at a floating or variable interest rate (other than during any Extension Period, if
applicable), and (b) a third party Cap Agreement is not required, then this Section 2.06 and Section 3.04 will be of no force or effect. 

  

	 	(a)	So long as there is no Event of Default, Lender or Loan Servicer will remit to Borrower each Cap Payment received by Lender or Loan Servicer with respect to any month for which Borrower has paid in full the monthly
installment of principal and interest or interest only, as applicable, due under the Note. Alternatively, at Lender’s option, so long as there is no Event of Default, Lender may apply a Cap Payment received by Lender or Loan Servicer with
respect to any month to the applicable monthly payment of accrued interest due under the Note if Borrower has paid in full the remaining portion of such monthly payment of principal and interest or interest only, as applicable. 

 

	 	(b)	Neither the existence of a Cap Agreement nor anything in this Loan Agreement will relieve Borrower of its primary obligation to timely pay in full all amounts due under the Note and otherwise due on account of the
Indebtedness. 

  

	ARTICLE III	LOAN SECURITY AND GUARANTY. 

  

	3.01	Security Instrument. Borrower will execute the Security Instrument dated of even date with this Loan Agreement. The Security Instrument will be recorded in the applicable land records in the Property
Jurisdiction. 

  

	3.02	Reserve Funds. 

  

	 	(a)	Security Interest. To secure Borrower’s obligations under this Loan Agreement and to further secure Borrower’s obligations under the Note and the other Loan Documents, Borrower conveys, pledges,
transfers and grants to Lender a security interest pursuant to the Uniform Commercial Code of the Property Jurisdiction or any other applicable law in and to all money in the Reserve Funds, as the same may increase or decrease from time to time, all
interest and dividends thereon and all proceeds thereof. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 3

	 	(b)	Supplemental Loan. If this Loan Agreement is entered into in connection with a Supplemental Loan and if the same Person is or becomes both Senior Lender and Supplemental Lender, then: 

 

	 	(i)	Borrower assigns and grants to Supplemental Lender a security interest in the Reserve Funds established in connection with the Senior Indebtedness as additional security for all of Borrower’s obligations under the
Supplemental Note. 

  

	 	(ii)	In addition, Borrower assigns and grants to Senior Lender a security interest in the Reserve Funds established in connection with the Supplemental Indebtedness as additional security for all of Borrower’s
obligations under the Senior Note. 

  

	 	(iii)	It is the intention of Borrower that all amounts deposited by Borrower in connection with either the Senior Loan Documents, the Supplemental Loan Documents, or both, constitute collateral for the Supplemental
Indebtedness secured by the Supplemental Instrument and the Senior Indebtedness secured by the Senior Instrument, with the application of such amounts to such Senior Indebtedness or Supplemental Indebtedness to be at the discretion of Senior Lender
and Supplemental Lender. 

  

	3.03	Uniform Commercial Code Security Agreement. This Loan Agreement is also a security agreement under the Uniform Commercial Code for any of the Mortgaged Property which, under applicable law, may be subjected to a
security interest under the Uniform Commercial Code, for the purpose of securing Borrower’s obligations under this Loan Agreement and to further secure Borrower’s obligations under the Note, Security Instrument and other Loan Documents,
whether such Mortgaged Property is owned now or acquired in the future, and all products and cash and non-cash proceeds thereof (collectively, “UCC Collateral”), and by this Loan Agreement, Borrower grants to Lender a security
interest in the UCC Collateral. 

  

	3.04	Cap Agreement and Cap Collateral Assignment. Reserved. 

  

	3.05	Guaranty. Borrower will cause each Guarantor (if any) to execute a Guaranty of all or a portion of Borrower’s obligations under the Loan Documents effective as of the date of this Loan Agreement.

  

	3.06	Assignment of Licenses, Certificates and Permits. 

  

	 	(a)	Assignment of the Licenses. As additional security for the Loan, to the extent they are assignable, Borrower hereby transfers, sets over and assigns to Lender, and hereby grants to Lender a security interest in,
all of Borrower’s right, title and interest in and to the Licenses and any and all renewals or extensions of the Licenses, together with all cash and non-cash proceeds thereof. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 4

	 	(b)	Lender’s Right Upon Event of Default. Without limiting Lender’s rights described elsewhere, if an Event of Default exists under any Loan Document, then to the extent permitted by applicable law, Lender
will have the right to exercise all the rights under the Licenses that Borrower has. Lender does not assume any obligations or duties of Borrower concerning the Licenses. 

 

	 	(c)	Attorney-in-Fact. Borrower irrevocably constitutes and appoints Lender as Borrower’s attorney-in-fact to demand, receive and enforce Borrower’s rights with respect to the Licenses and to do any and all
acts in Borrower’s name or in the name of Lender with the same force and effect as Borrower could do if this Loan Agreement had not been made. This appointment will be deemed to be coupled with an interest and irrevocable. 

 

	3.07	Reserved. 

  

	3.08	Reserved. 

  

	ARTICLE IV	RESERVE FUNDS AND REQUIREMENTS. 

  

	4.01	Reserves Generally. 

  

	 	(a)	Establishment of Reserve Funds; Investment of Deposits. Unless otherwise provided in Section 4.03 and/or Section 4.04, each Reserve Fund will be established on the date of this Loan Agreement and each
of the following will apply: 

  

	 	(i)	All Reserve Funds will be deposited in an Eligible Account at an Eligible Institution or invested in “permitted investments” as then defined and required by the Rating Agencies. 

 

	 	(ii)	Lender will not be obligated to open additional accounts or deposit Reserve Funds in additional institutions when the amount of any Reserve Fund exceeds the maximum amount of the federal deposit insurance or guaranty.
Borrower acknowledges and agrees that it will not have the right to direct Lender as to any specific investment of monies in any Reserve Fund. Lender will not be responsible for any losses resulting from investment of monies in any Reserve Fund or
for obtaining any specific level or percentage of earnings on such investment. 

  

	 	(b)	Interest on Reserve Funds; Trust Funds. Unless applicable law requires, Lender will not be required to pay Borrower any interest, earnings or profits on the Reserve Funds. Any amounts deposited with Lender under
this Article IV will not be trust funds, nor will they operate to reduce the Indebtedness, unless applied by Lender for that purpose pursuant to the terms of this Loan Agreement. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 5

	 	(c)	Use of Reserve Funds. Each Reserve Fund will, except as otherwise provided in this Loan Agreement, be used for the sole purpose of paying, or reimbursing Borrower for payment of, the item(s) for which the
applicable Reserve Fund was established. Borrower acknowledges and agrees that, except as specified in this Loan Agreement, monies in one Reserve Fund will not be used to pay, or reimburse Borrower for, matters for which another Reserve Fund has
been established. 

 (d) Termination of Reserve Funds. Upon the payment in full of the Indebtedness, Lender will pay to
Borrower all funds remaining in any Reserve Funds. 
  

	 	(e)	Reserved. 

  

	4.02	Reserves for Taxes, Insurance and Other Charges. 

  

	 	(a)	Deposits to Imposition Reserve Deposits. Borrower will deposit with Lender on the day monthly installments of principal or interest, or both, are due under the Note (or on another day designated in writing by
Lender), until the Indebtedness is paid in full, an additional amount sufficient to accumulate with Lender the entire sum required to pay, when due, the items marked “Collect” below. Except as provided in Section 4.02(e), Lender will
not require Borrower to make Imposition Reserve Deposits with respect to the items marked “Deferred” below. 

  

			
	[  Collect  ]	  	Property Insurance premiums or premiums for other Insurance required by Lender under Section 6.10
	[  Collect  ]	  	Taxes and payments in lieu of taxes
	[Deferred]	  	water and sewer charges that could become a Lien on the Mortgaged Property
	[  N/A      ]	  	Ground Rents
	[Deferred]	  	assessments or other charges that could become a Lien on the Mortgaged Property, including home owner association dues

 The amounts deposited pursuant to this Section 4.02(a) are collectively referred to in this Loan
Agreement as the “Imposition Reserve Deposits.” The obligations of Borrower for which the Imposition Reserve Deposits are required are collectively referred to in this Loan Agreement as “Impositions.” The amount of
the Imposition Reserve Deposits must be sufficient to enable Lender to pay each Imposition before the last date upon which such payment may be made without any penalty or interest charge being added. Lender will maintain records indicating how much
of the monthly Imposition Reserve Deposits and how much of the aggregate Imposition Reserve Deposits held by Lender are held for the purpose of paying Taxes, Insurance premiums, Ground Rent (if applicable) and each other Imposition. 

 

	 	(b)	 Disbursement of Imposition Reserve Deposits. Lender will apply the Imposition Reserve Deposits to pay Impositions so long as no Event of
Default has occurred 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 6

	 	
and is continuing. Lender will pay all Impositions from the Imposition Reserve Deposits held by Lender upon Lender’s receipt of a bill or invoice for an Imposition. If Borrower holds a
ground lessee interest in the Mortgaged Property and Imposition Reserve Deposits are collected for Ground Rent, then Lender will pay the monthly or other periodic installments of Ground Rent from the Imposition Reserve Deposits, whether or not
Lender receives a bill or invoice for such installments. Lender will have no obligation to pay any Imposition to the extent it exceeds the amount of the Imposition Reserve Deposits then held by Lender. Lender may pay an Imposition according to any
bill, statement or estimate from the appropriate public office, Ground Lessor (if applicable) or insurance company without inquiring into the accuracy of the bill, statement or estimate or into the validity of the Imposition. 

 

	 	(c)	Excess or Deficiency of Imposition Reserve Deposits. If at any time the amount of the Imposition Reserve Deposits held by Lender for payment of a specific Imposition exceeds the amount reasonably deemed necessary
by Lender, the excess will be credited against future installments of Imposition Reserve Deposits. If at any time the amount of the Imposition Reserve Deposits held by Lender for payment of a specific Imposition is less than the amount reasonably
estimated by Lender to be necessary, Borrower will pay to Lender the amount of the deficiency within 15 days after Notice from Lender. 

  

	 	(d)	Delivery of Invoices. Borrower will promptly deliver to Lender a copy of all notices of, and invoices for, Impositions. 

  

	 	(e)	Deferral of Collection of Any Imposition Reserve Deposits; Delivery of Receipts. If Lender does not collect an Imposition Reserve Deposit with respect to an Imposition either marked “Deferred” in
Section 4.02(a) or pursuant to a separate written deferral by Lender, then on or before the earlier of the date each such Imposition is due, or the date this Loan Agreement requires each such Imposition to be paid, Borrower will provide Lender
with proof of payment of each such Imposition. Upon Notice to Borrower, Lender may revoke its deferral and require Borrower to deposit with Lender any or all of the Imposition Reserve Deposits listed in Section 4.02(a), regardless of whether
any such item is marked “Deferred” (i) if Borrower does not timely pay any of the Impositions, (ii) if Borrower fails to provide timely proof to Lender of such payment, (iii) at any time during the existence of an Event of
Default or (iv) upon placement of a Supplemental Loan in accordance with Section 11.11. 

  

	 	(f)	through (i) are Reserved. 

  

	4.03	Repairs; Repair Reserve Fund. Reserved. 

  

	4.04	Replacement Reserve Fund. Reserved. 

  

	4.05	Rental Achievement Provisions. Reserved. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 7

	4.06	Debt Service Reserve. Reserved. 

  

	4.07	Rate Cap Agreement Reserve Fund. Reserved. 

  

	4.08	Reserved. 

  

	4.09	Reserved. 

  

	ARTICLE V	REPRESENTATIONS AND WARRANTIES. 

 Borrower represents and warrants to Lender as follows as of the date of
this Loan Agreement: 
  

	5.01	Review of Documents. Borrower has reviewed: (a) the Note, (b) the Security Instrument, (c) the Commitment Letter, and (d) all other Loan Documents. 

 

	5.02	Condition of Mortgaged Property. Except as Borrower may have disclosed to Lender in writing in connection with the issuance of the Commitment Letter, the Mortgaged Property has not been damaged by fire, water,
wind or other cause of loss, or any previous damage to the Mortgaged Property has been fully restored. 

  

	5.03	No Condemnation. No part of the Mortgaged Property has been taken in Condemnation or other like proceeding, and, to the best of Borrower’s knowledge after due inquiry and investigation, no such proceeding is
pending or threatened for the partial or total Condemnation or other taking of the Mortgaged Property. 

  

	5.04	Actions; Suits; Proceedings. 

  

	 	(a)	There are no judicial, administrative, mediation or arbitration actions, suits or proceedings pending or, to the best of Borrower’s knowledge, threatened in writing against or affecting Borrower (and, if Borrower
is a limited partnership, any of its general partners or if Borrower is a limited liability company, any member of Borrower) or the Mortgaged Property which, if adversely determined, would have a Material Adverse Effect. 

 

	 	(b)	Without limiting the generality of subsection (a) above, none of Borrower (and, if Borrower is a limited partnership, any of its general partners or if Borrower is a limited liability company, any member of
Borrower), any Facility Operator, or the Facility are subject to any proceeding, suit or investigation by any Governmental Authority and neither Borrower nor any Facility Operator has received any notice from any Governmental Authority which may,
directly or indirectly, or with the passage of time, result in the imposition of a fine, or interim or final sanction, or would do any of the following: 

  

	 	(i)	Have a Material Adverse Effect. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 8

	 	(ii)	Result in the appointment of a receiver or trustee. 

  

	 	(iii)	Affect Borrower’s or any Facility Operator’s ability to accept and retain residents. 

  

	 	(iv)	Result in the Downgrade, revocation, transfer, surrender or suspension, or non-renewal or reissuance or other impairment of any License. 

 

	 	(v)	Affect Borrower’s or operator’s continued participation in any Governmental Payor Program, or any successor programs thereto, at current rate certifications. 

 

	5.05	Environmental. Except as previously disclosed by Borrower to Lender in writing (which written disclosure may be in certain environmental assessments and other written reports accepted by Lender in connection with
the funding of the Indebtedness and dated prior to the date of this Loan Agreement), each of the following is true: 

  

	 	(a)	Borrower has not at any time engaged in, caused or permitted any Prohibited Activities or Conditions on the Mortgaged Property. 

  

	 	(b)	To the best of Borrower’s knowledge after due inquiry and investigation, no Prohibited Activities or Conditions exist or have existed on the Mortgaged Property. 

 

	 	(c)	The Mortgaged Property does not now contain any underground storage tanks, and, to the best of Borrower’s knowledge after due inquiry and investigation, the Mortgaged Property has not contained any underground
storage tanks in the past. If there is an underground storage tank located on the Mortgaged Property that has been previously disclosed by Borrower to Lender in writing, that tank complies with all requirements of Hazardous Materials Laws.

  

	 	(d)	To the best of Borrower’s knowledge after due inquiry and investigation, Borrower has complied with all Hazardous Materials Laws, including all requirements for notification regarding releases of Hazardous
Materials. Without limiting the generality of the foregoing, all Environmental Permits required for the operation of the Mortgaged Property in accordance with Hazardous Materials Laws now in effect have been obtained and all such Environmental
Permits are in full force and effect. 

  

	 	(e)	To the best of Borrower’s knowledge after due inquiry and investigation, no event has occurred with respect to the Mortgaged Property that constitutes, or with the passage of time or the giving of notice, or both,
would constitute, noncompliance with the terms of any Environmental Permit. 

  

	 	(f)	There are no actions, suits, claims or proceedings pending or, to the best of Borrower’s knowledge after due inquiry and investigation, threatened in writing, that involve the Mortgaged Property and allege, arise
out of, or relate to any Prohibited Activity or Condition. 

  

	 	(g)	Borrower has received no actual or constructive notice of any written complaint, order, notice of violation or other communication from any Governmental Authority with regard to air emissions, water discharges, noise
emissions or Hazardous Materials, or any other environmental, health or safety matters affecting the Mortgaged Property or any property that is adjacent to the Mortgaged Property. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 9

	5.06	Commencement of Work; No Labor or Materialmen’s Claims. Except as set forth on Exhibit E, prior to the recordation of the Security Instrument, no work of any kind has been or will be commenced or
performed upon the Mortgaged Property, and no materials or equipment have been or will be delivered to or upon the Mortgaged Property, for which the contractor, subcontractor or vendor continues to have any rights including the existence of or right
to assert or file a mechanic’s or materialmen’s Lien. If any such work of any kind has been commenced or performed upon the Mortgaged Property, or if any such materials or equipment have been ordered or delivered to or upon the Mortgaged
Property, then prior to the execution of the Security Instrument, Borrower has satisfied each of the following conditions: 

  

	 	(a)	Borrower has fully disclosed in writing to the title insurance company issuing the mortgagee title insurance policy insuring the Lien of the Security Instrument that work has been commenced or performed on the Mortgaged
Property, or materials or equipment have been ordered or delivered to or upon the Mortgaged Property. 

  

	 	(b)	Borrower has obtained and delivered to Lender and the title company issuing the mortgagee title insurance policy insuring the Lien of the Security Instrument Lien waivers from all contractors, subcontractors, suppliers
or any other applicable party, pertaining to all work commenced or performed on the Mortgaged Property, or materials or equipment ordered or delivered to or upon the Mortgaged Property. 

Borrower represents and warrants that all parties furnishing labor and materials for which a Lien or claim of Lien may be filed against the
Mortgaged Property have been paid in full and, except for such Liens or claims insured against by the policy of title insurance to be issued in connection with the Loan, there are no mechanics’, laborers’ or materialmen’s Liens or
claims outstanding for work, labor or materials affecting the Mortgaged Property, whether prior to, equal with or subordinate to the Lien of the Security Instrument. 
  

	5.07	Compliance with Applicable Laws and Regulations. 

  

	 	(a)	To the best of Borrower’s knowledge after due inquiry and investigation, each of the following is true: 

  

	 	(i)	All Improvements and the use of the Mortgaged Property comply with all applicable statutes, rules and regulations, including all applicable statutes, rules and regulations pertaining to requirements for equal
opportunity, anti-discrimination, fair housing, environmental protection, zoning and land use (“legal, non-conforming” status with respect to uses or structures will be considered to comply with zoning and land use requirements for the
purposes of this representation). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 10

	 	(ii)	The Improvements comply with applicable health, fire, and building codes. 

  

	 	(iii)	There is no evidence of any illegal activities relating to controlled substances on the Mortgaged Property. 

  

	 	(b)	Without limiting the generality of subsection (a) above, Borrower, any Facility Operator, and the Facility (and its operation) and all residential care agreements and residential Leases are in compliance with the
applicable provisions of all laws, regulations, ordinances, orders or standards of any Governmental Authority having jurisdiction over the operation of the Facility (including any Governmental Payor Program requirements and disclosure of ownership
and related information requirements), including: 

  

	 	(i)	Healthcare Laws, Privacy Laws, fire and safety codes and building codes (and no waivers of such requirements exist at the Facility). 

 

	 	(ii)	Laws, rules, regulations and published interpretations thereof regulating the preparation and serving of food. 

  

	 	(iii)	Laws, rules, regulations and published interpretations thereof regulating the handling and disposal of medical or biological waste. 

  

	 	(iv)	The applicable provisions of all laws, rules, regulations and published interpretations thereof to which Borrower or the Facility is subject by virtue of its Intended Use. 

 

	 	(v)	All criteria established to classify the Facility as housing for older persons under the Fair Housing Amendments Act of 1988. 

  

	 	(c)	Borrower has received no notice of, and is not aware of, any violation of applicable antitrust laws or securities laws relating to the Facility, Borrower, or any Facility Operator. 

 

	5.08	Access; Utilities; Tax Parcels. The Mortgaged Property: (a) has ingress and egress via a publicly dedicated right of way or via an irrevocable easement permitting ingress and egress, (b) is served by
public utilities and services generally available in the surrounding community or otherwise appropriate for the use in which the Mortgaged Property is currently being utilized, and (c) constitutes one or more separate tax parcels.

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 11

	5.09	Licenses and Permits. 

  

	 	(a)	Borrower, any commercial tenant of the Mortgaged Property, any Facility Operator, and or any Property Manager is in possession of all material licenses, permits and authorizations required for use of the Mortgaged
Property, which are valid and in full force and effect as of the date of this Loan Agreement. 

  

	 	(b)	Without limiting the generality of subsection (a) above, Borrower has obtained or has caused any Facility Operator to obtain all Licenses necessary to use, occupy or operate the Facility for its Intended Use (such
Licenses being in its own name or in the name of a Facility Operator, if any, and in any event in the names of the Persons required by the applicable Governmental Authorities), and all such Licenses are in full force and effect. Borrower has
provided Lender with complete and accurate copies of all Licenses. The Intended Use of the Facility is in conformity with all certificates of occupancy and Licenses and any other restrictions or covenants affecting the Facility. The Facility has all
equipment, staff and supplies necessary to use and operate the Facility for its Intended Use. 

  

	 	(c)	Borrower has timely filed or has caused to be timely filed all reports and other information that the Licenses require to be filed. 

  

	 	(d)	Each License, and the name of the Person in whose name each License is issued is identified on Exhibit K, and a true and complete copy of each License is attached as Exhibit K. 

 

	 	(e)	As of the Closing Date, the Licenses attached as Exhibit K are current and Borrower has not been subject to or received notice of any pending inquiry, audit, investigative demand or violation that have not been
brought to Lender’s attention in writing. 

  

	 	(f)	Borrower is not aware of any deficiencies, actions or inactions that, in the aggregate, could result in a suspension, Downgrade, revocation, termination, restriction, or conditioning of any License. 

 

	 	(g)	There has been no previous assignment or encumbrance of the Licenses except assignments or encumbrances terminated prior to Borrower entering into this Loan Agreement or collateral assignments or encumbrances terminated
by any Facility Operator prior to Borrower entering into this Loan Agreement. 

  

	 	(h)	Other than the Licenses attached as Exhibit K, as of the Closing Date, no other Licenses are required to operate the Facility as it is currently being operated and for its Intended Use. 

 

	 	(i)	Neither the execution and delivery of the Note, this Loan Agreement, the Security Instrument nor any other Loan Document, Borrower’s performance under the Loan Documents, nor the recordation of the Security
Instrument, nor the exercise of any remedies by Lender pursuant to the Loan Documents, at law or in equity, will adversely affect the Licenses. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 12

	5.10	No Other Interests. To the best of Borrower’s knowledge after due inquiry and investigation, no Person has (a) any possessory interest in the Mortgaged Property or right to occupy the Mortgaged Property
except under and pursuant to the provisions of existing Leases by and between tenants and Borrower (a form of residential lease having been previously provided to Lender together with the material terms of any and all Non-Residential Leases at the
Mortgaged Property), or (b) an option to purchase the Mortgaged Property or an interest in the Mortgaged Property, except as has been disclosed to and approved in writing by Lender. 

 

	5.11	Term of Leases. All Leases for residential dwelling units with respect to the Mortgaged Property satisfy the following conditions: 

 

	 	(a)	They are on forms that are customary for similar senior housing facilities in the Property Jurisdiction. 

  

	 	(b)	They are for initial terms of at least 6 months and not more than 2 years (unless otherwise approved in writing by Lender). 

  

	 	(c)	They do not include any Corporate Leases (unless otherwise approved in writing by Lender) 

  

	 	(d)	They do not include options to purchase. 

  

	5.12	No Prior Assignment; Prepayment of Rents. Borrower has (a) not executed any prior assignment of Rents (other than an assignment of Rents securing any prior indebtedness that is being assigned to Lender, or
that is being paid off and discharged with the proceeds of the Loan evidenced by the Note or, if this Loan Agreement is entered into in connection with a Supplemental Loan, other than an assignment of Rents securing any Senior Indebtedness), and
(b) not performed any acts and has not executed, and will not execute, any instrument which would prevent Lender from exercising its rights under any Loan Document. At the time of execution of this Loan Agreement, unless otherwise approved by
Lender in writing, there has been no prepayment of any Rents for more than 2 months prior to the due dates of such Rents. 

  

	5.13	Illegal Activity. No portion of the Mortgaged Property has been or will be purchased with the proceeds of any illegal activity. 

 

	5.14	 Taxes Paid. Borrower has filed all federal, state, county and municipal tax returns required to have been filed by Borrower, and has paid all
Taxes which have become due pursuant to such returns or to any notice of assessment received by Borrower, and 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 13

	 	
Borrower has no knowledge of any basis for additional assessment with respect to such taxes. To the best of Borrower’s knowledge after due inquiry and investigation, there are not presently
pending any special assessments against the Mortgaged Property or any part of the Mortgaged Property. 

  

	5.15	Title Exceptions. To the best of Borrower’s knowledge after due inquiry and investigation, none of the items shown in the schedule of exceptions to coverage in the title policy issued to and accepted by
Lender contemporaneously with the execution of this Loan Agreement and insuring Lender’s interest in the Mortgaged Property will have a Material Adverse Effect on the: (a) ability of Borrower to pay the Loan in full, (b) ability of
Borrower to use all or any part of the Mortgaged Property in the manner in which the Mortgaged Property is being used on the Closing Date, except as set forth in Section 6.03, (c) operation of the Mortgaged Property, or (d) value of
the Mortgaged Property. 

  

	5.16	No Change in Facts or Circumstances. 

  

	 	(a)	All information in the application for the Loan submitted to Lender, including all financial statements for the Mortgaged Property, Borrower, and any Borrower Principal, and all Rent Schedules, reports, certificates,
and any other documents submitted in connection with the application (collectively, “Loan Application”) is complete and accurate in all material respects as of the date such information was submitted to Lender. 

 

	 	(b)	There has been no change in any fact or circumstance since the Loan Application was submitted to Lender that would make any information submitted as part of the Loan Application materially incomplete or inaccurate.

  

	 	(c)	The organizational structure of Borrower is as set forth in Exhibit H. 

  

	5.17	Financial Statements. The financial statements of Borrower and each Borrower Principal furnished to Lender as part of the Loan Application reflect in each case a positive net worth as of the date of the
applicable financial statement. 

  

	5.18	ERISA – Borrower Status. Borrower represents as follows: 

  

	 	(a)	Borrower is not an “investment company,” or a company under the Control of an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 14

	 	(b)	Borrower is not an “employee benefit plan,” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA or a “plan” to which Section 4975 of the Tax Code applies, and the
assets of Borrower do not constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA. 

 

	 	(c)	Borrower is not a “governmental plan” within the meaning of Section 3(32) of ERISA, and is not subject to state statutes regulating investments or fiduciary obligations with respect to governmental plans.

  

	5.19	No Fraudulent Transfer or Preference. No Borrower or Borrower Principal (a) has made, or is making in connection with and as security for the Loan, a transfer of an interest in the property of Borrower or
Borrower Principal to or for the benefit of Lender or otherwise as security for any of the obligations under the Loan Documents which is or could constitute a voidable preference under federal bankruptcy, state insolvency or similar applicable
creditors’ rights laws, or (b) has made, or is making in connection with the Loan, a transfer (including any transfer to or for the benefit of an insider under an employment contract) of an interest of Borrower or any Borrower Principal in
property which is or could constitute a voidable preference under federal bankruptcy, state insolvency or similar applicable creditors’ rights laws, or (c) has incurred, or is incurring in connection with the Loan, any obligation
(including any obligation to or for the benefit of an insider under an employment contract) which is or could constitute a fraudulent transfer under federal bankruptcy, state insolvency, or similar applicable creditors’ rights laws.

  

	5.20	No Insolvency or Judgment. 

  

	 	(a)	No Pending Proceedings or Judgments. No Borrower or Borrower Principal is (i) the subject of or a party to (other than as a creditor) any completed or pending bankruptcy, reorganization or insolvency
proceeding, or (ii) the subject of any judgment unsatisfied of record or docketed in any court located in the United States. 

  

	 	(b)	Insolvency. Borrower is not presently insolvent, and the Loan will not render Borrower insolvent. As used in this Section, the term “insolvent” means that the total of all of a Person’s liabilities
(whether secured or unsecured, contingent or fixed, or liquidated or unliquidated) is in excess of the value of all of the assets of the Person that are available to satisfy claims of creditors. 

 

	5.21	Working Capital. After the Loan is made, Borrower intends to have sufficient working capital, including cash flow from the Mortgaged Property or other sources, not only to adequately maintain the Mortgaged
Property, but also to pay all of Borrower’s outstanding debts as they come due (other than any balloon payment due upon the maturity of the Loan). Lender acknowledges that no members or partners of Borrower or any Borrower Principal will be
obligated to contribute equity to Borrower for purposes of providing working capital to maintain the Mortgaged Property or to pay Borrower’s outstanding debts except as may otherwise be required under their organizational documents.

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 15

	5.22	Cap Collateral. Reserved. 

  

	5.23	Ground Lease. Reserved. 

  

	5.24	Purpose of Loan. The purpose of the Loan is as indicated by the checked boxes below:  

  

	 	 ̈	Refinance Loan: The Loan is a refinancing of existing indebtedness and, except to the extent specifically required by Lender, there is to be no change in the ownership of either the Mortgaged Property or Borrower
Principals. The intended use of any cash received by Borrower from Lender, to the extent applicable, in connection with the refinancing has been fully disclosed to Lender. 

 

	 	x	Acquisition Loan: All of the consideration given or received or to be given or received in connection with the acquisition of the Mortgaged Property has been fully disclosed to Lender. The Mortgaged Property was
or will be purchased from Toledo Retirement Residence LLC (“Property Seller”). No Borrower or Borrower Principal has or had, directly or indirectly (through a family member or otherwise), any interest in the Property Seller and the
acquisition of the Mortgaged Property is an arm’s-length transaction. To the best of Borrower’s knowledge after due inquiry and investigation, the purchase price of the Mortgaged Property represents the fair market value of the Mortgaged
Property and Property Seller is not or will not be insolvent subsequent to the sale of the Mortgaged Property. 

  

	 	 ̈	Supplemental Loan: The Loan is a Supplemental Loan and, except to the extent specifically required or approved by Lender, there has been no change in the ownership of either the Mortgaged Property or Borrower
Principals since the date of the Senior Note. The intended use of any cash received by Borrower from Lender, to the extent applicable, in connection with the refinancing has been fully disclosed to Lender. 

 

	 	x	Cross-Collateralized/Cross-Defaulted Loan Pool: The Loan is part of a cross-collateralized/cross-defaulted pool of loans described as follows: 

 

			
	  X  	  	being simultaneously made to Borrower and/or Borrower’s Affiliates
		
	        	  	made previously to Borrower and/or Borrower’s Affiliates

 The intended use of any cash received by Borrower from Lender, to the extent applicable, in connection
with the Loan and the other loans comprising the cross-collateralized/cross-defaulted loan pool has been fully disclosed to Lender. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 16

	5.25	Intended Use. 

  

	 	(a)	The residential units in the Facility are allocated as follows (“Intended Use”): 

  

							
	1.	 	Independent Living Units	  	100%
		 		  	117 units
			
	2.	 	Assisted Living Residences	  	0%
		 		  	0 units
		 		  	0 beds
			
	3.	 	Assisted Living Residences devoted to Alzheimer’s care, dementia care and/or memory care	  	0%
		 		  	0 units
		 		  	0 beds
			
	4.	 	Skilled Nursing Beds	  	0%
		 		  	0 units
		 		  	0 beds
		
	5.	 	Continuing Care Retirement Community with the following percentages of use:
				
		 	a.	 	Seniors Apartments	  	0%
		 		 		  	0 units
				
		 	b.	 	Independent Living Units	  	0%
		 		 		  	0 units
				
		 	c.	 	Assisted Living Residences	  	0%
		 		 		  	0 units
		 		 		  	0 beds
				
		 	d.	 	Skilled Nursing Beds	  	0%
		 		 		  	0 units
		 		 		  	0 beds

  

	 	(b)	The number of units set aside as Assisted Living Residences and Independent Living Units may be decreased by no more than 10% of the present number of total units in the Facility. The number of units set aside as
Assisted Living Residences and Independent Living Units may be increased by no more than 25% of the present number of total units in the Facility; provided, however, that in the case of Independent Living Units, the percentage of Independent Living
Units cannot exceed 50% of the total number of units in the Facility. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 17

	 	(c)	Reserved. 

  

	 	(d)	Reserved. 

  

	5.26	Furniture, Fixtures, Equipment, and Motor Vehicles. As of the Closing Date, all furniture, Fixtures, equipment, and motor vehicles located on or used in connection with the Mortgaged Property, and the name of the
Person that owns and/or leases each item, if other than Borrower, is listed on Exhibit L, and such list is true and complete. 

  

	5.27	Participant in Federal Programs. Neither Borrower nor any Facility Operator is a participant in any federal program under which any Governmental Authority may have the right to recover funds by reason of the
advance of federal funds. 

  

	5.28	Certificate of Need. Under applicable laws and regulations as in effect on the date of this Loan Agreement, if any existing management agreement or operating lease is terminated or Lender acquires the Facility
through foreclosure or otherwise, none of Borrower, Lender, any subsequent operator or management agent, or any subsequent purchaser (through foreclosure or otherwise) must obtain a certificate of need from any Governmental Authority (other than
giving of any notice required under the applicable state law or regulation) prior to applying for any License, so long as neither the type of service nor any unit complement is changed. 

 

	5.29	Contracts. 

  

	 	(a)	Exhibit M lists all Contracts in effect as of the date of this Loan Agreement, the names of the parties to such Contracts and the dates of such Contracts. 

 

	 	(b)	With regard to each Contract listed in Exhibit M, (i) the Contract is in full force and effect in accordance with its terms, and (ii) there is no default by any party under the Contract.

  

	 	(c)	Borrower has delivered to Lender a copy of each Contract, together with all amendments, modifications, supplements and renewals thereto in effect as of the date of this Loan Agreement. 

 

	 	(d)	Each Contract listed in Exhibit M provides that it is terminable by Borrower or any Facility Operator upon not more than 30 days notice without the necessity of establishing cause and without payment of a penalty
or termination fee by Borrower or any Facility Operator or their respective successors or assigns, except only Third Party Provider Agreements. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 18

	5.30	Material Contracts. 

  

	 	(a)	Exhibit N lists all Material Contracts in effect as of the date of this Loan Agreement. 

  

	 	(b)	With regard to each Material Contract listed in Exhibit N: (i) the Material Contract is assignable by Borrower, or if Borrower is not a party thereto, by a Facility Operator, without the consent of the other
party thereto (or Borrower and any Facility Operator, as applicable, has obtained express written consent to the assignment from the other party thereto), except only Third Party Provider Agreements; (ii) no previous assignment of
Borrower’s or any Facility Operator’s interest in the Material Contract has been made except such assignments that have been properly terminated prior to or concurrently with the execution and delivery of this Loan Agreement;
(iii) the Material Contract is in full force and effect in accordance with its terms; and (iv) there is no default by any party under the Material Contract. 

 

	 	(c)	Borrower has delivered to Lender a copy of each Material Contract, together with all amendments, modifications, supplements and renewals thereto in effect as of the date of this Loan Agreement. 

 

	 	(d)	Each Material Contract listed in Exhibit N provides that it is terminable upon not more than 30 days notice without the necessity of establishing cause and without payment of a penalty or termination fee by
Borrower or any Facility Operator or their respective successors or assigns, except only Third Party Provider Agreements. 

  

	5.31	No Financing Statements. Except for termination statements and continuation statements, during the 45-day period prior to the date of this Loan Agreement, there have been no UCC financing statements filed with
respect to any of the UCC Collateral listing as debtor Borrower, any Facility Operator, or the Facility’s common name. 

  

	5.32	Medicare and Medicaid. If Borrower or any Facility Operator or Property Manager participates in any Governmental Payor Program in connection with the operation of the Facility, all of the following are true:

  

	 	(a)	The Facility is in compliance in all material respects with the requirements for participation in the Governmental Payor Program, including without limitation, the Medicare and Medicaid Patient Protection Act of 1987.

  

	 	(b)	The Facility conforms in all material respects to all insurance, reimbursement and cost reporting requirements, and has a current provider agreement under Title XVIII and/or XIX of the Social Security Act or any other
applicable laws for reimbursement necessary for its Intended Use. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 19

	 	(c)	There is no action pending or threatened to terminate the Facility’s participation in the Governmental Payor Program nor is there any decision not to renew any provider agreement related to the Facility, nor is
there any action pending or threatened to impose material intermediate or alternative sanctions with respect to the Facility. 

  

	 	(d)	All Governmental Payor Program and private insurance cost reports and financial reports submitted by Borrower, any Facility Operator, or any Property Manager for the Facility are and will be materially accurate and
complete and have not been and will not be misleading in any material respects. 

  

	 	(e)	No cost reports for the Facility remain “open” or unsettled, except as otherwise disclosed in writing to Lender. 

  

	 	(f)	The Facility has not received a “Level A” (or equivalent) violation, and no statement of charges or deficiencies has been made or penalty enforcement action has been undertaken against the Facility, any
Property Manager or Facility Operator or the Borrower (or any officer, director or stockholder of any of the foregoing) during the last 3 calendar years, and there have been no violations over the past 3 calendar years which have threatened any
certification of the Facility, any Property Manager or Facility Operator or the Borrower for participation in any Governmental Payor Program. 

  

	 	(g)	There are no resident care agreements with residents of the Facility or with any other Persons which deviate in any material respect from the standard forms customarily used at a comparable first-class facility or which
conflict with any statutory or regulatory requirements. 

  

	 	(h)	All resident records at the Facility, including any resident trust fund accounts, are true and correct in all material respects. 

  

	 	(i)	Borrower and the Facility are not subject to any proceeding, suit, or investigation by any Governmental Authority. None of the Borrower, any Property Manager, or any Facility Operator has received any notice from any
Governmental Authority which has not been provided for on the financial statements provided to Lender and which may result in the imposition of a fine or interim or final sanction or which would result in a lower reimbursement rate for services
rendered to eligible residents. 

  

	 	(j)	The execution and delivery of the Note, this Loan Agreement, the Security Instrument, or any other Loan Document, Borrower’s performance under the Loan Documents, the recordation of the Security Instrument, and the
exercise of any remedies by Lender, will not do any of the following: 

  

	 	(i)	Adversely affect the right by Borrower, a Facility Operator, or the Facility to receive Governmental Payor Program payments and reimbursements with respect to the Facility. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 20

	 	(ii)	Materially reduce the Governmental Payor Program payments and reimbursements which Borrower or a Facility Operator is receiving as of the date of this Loan Agreement. 

 

	 	(iii)	Adversely affect any of the Licenses. 

  

	 	(k)	If any existing management agreement or operating lease is terminated or Lender acquires the Facility through foreclosure or otherwise, none of the Borrower, Lender, any subsequent management agent, any subsequent
operator of the Facility, or any subsequent purchaser (through foreclosure or otherwise) will be required to obtain a certificate of need from any Governmental Authority (other than giving of any notice required under the applicable state law or
regulation) prior to receiving certification to receive Governmental Payor Program payments (or any successor programs) for residents having coverage under any Governmental Payor Program so long as neither the type of service nor any unit complement
is changed. 

  

	5.33	Third-Party Payor Programs and Private Commercial Insurance Managed Care and Employee Assistance Programs. There is no threatened or pending revocation, suspension, termination, probation, restriction, limitation
or nonrenewal affecting Borrower or Facility Operator, of any participation or provider agreement with any Governmental Payor Program or any private commercial insurance managed care or employee assistance program to which Borrower or Facility
Operator is subject. All Governmental Payor Program and private insurance cost reports and financial reports submitted by Borrower or Facility Operator are and will be materially accurate and complete and have not been and will not be misleading in
any material respects. No cost reports for the Facility remain “open” or unsettled. 

  

	5.34	No Transfer or Pledge of Licenses. The Licenses, including the certificate of need, may not be, and have not been, transferred to any location other than the Facility, have not been pledged as collateral security
for any other loan or indebtedness, and are held free from restrictions or known conflicts that would materially impair the use or operation of the Facility for its Intended Use, and are not provisional, probationary, or restricted in any way.

  

	5.35	No Pledge of Receivables. Neither Borrower nor the Facility Operator has pledged its receivables as collateral security for any other loan or indebtedness. 

 

	5.36	Patient and Resident Care Agreements. There are no patient or resident care agreements with patients or residents or with any other persons that deviate in any material adverse respect from the standard form
customarily used at the Facility. 

  

			
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	5.37	Patient and Resident Records. All patient or resident records at the Facility, including patient or resident trust fund accounts, are true and correct in all material respects. 

 

	5.38	No Facility Deficiencies, Enforcement Actions or Violations. 

  

	 	(a)	The Facility has not received a statement of charges or deficiencies and no penalty enforcement actions have been undertaken against the Facility, the Facility Operator or Borrower or against any officer, director or
stockholder thereof, by any Governmental Authority during the last three calendar years, and there have been no violations over the past three years that have threatened the Facility’s or the Facility Operator’s or Borrower’s
certification for participation in any Governmental Payor Program. 

  

	 	(b)	Reserved. 

  

	5.39	Seniors Housing Operator. Reserved. 

  

	5.40	Recycled SPE Borrower. Reserved. 

  

	5.41	Recycled SPE Equity Owner. Reserved. 

  

	5.42	through 5.50 are reserved. 

  

	5.51	Survival. The representations and warranties set forth in this Loan Agreement will survive until the Indebtedness is paid in full; however, the representations and warranties set forth in Section 5.05 will
survive beyond repayment of the entire Indebtedness, to the extent provided in Section 10.02(i). 

  

	5.52	through 5.53 are reserved. 

  

	ARTICLE VI	BORROWER COVENANTS. 

  

	6.01	Compliance with Laws. Borrower will comply with all laws, ordinances, rules, regulations and requirements of any Governmental Authority having jurisdiction over the Mortgaged Property and all licenses and permits
and all recorded covenants and agreements relating to or affecting the Mortgaged Property, including all laws, ordinances, regulations, requirements and covenants pertaining to health and safety, construction of improvements on the Mortgaged
Property, Repairs, Capital Replacements, fair housing, disability accommodation, zoning and land use, applicable building codes, special use permits and environmental regulations, Leases and the maintenance and disposition of tenant security
deposits. Borrower will take appropriate measures to prevent, and will not engage in or knowingly permit, any illegal activities at the Mortgaged Property, including those that could endanger tenants or visitors, result in damage to the Mortgaged
Property, result in forfeiture of the Mortgaged Property, or otherwise materially impair the Lien created by the Security Instrument or Lender’s interest in the Mortgaged Property. Borrower will at all times maintain records sufficient to
demonstrate compliance with the provisions of this Section 6.01. 

  

			
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	6.02	Compliance with Organizational Documents. Borrower will at all times comply with all laws, regulations and requirements of any Governmental Authority relating to Borrower’s formation, continued existence and
good standing in its state of formation and, if different, in the Property Jurisdiction. Borrower will at all times comply with its organizational documents, including its partnership agreement (if Borrower is a partnership), its by-laws (if
Borrower is a corporation or housing cooperative corporation or association) or its operating agreement (if Borrower is a limited liability company or tenancy-in-common). If Borrower is a housing cooperative corporation or association, Borrower will
at all times maintain its status as a “cooperative housing corporation” as such term is defined in Section 216(b) of the Internal Revenue Code of 1986, as amended, or any successor statute thereto. 

 

	6.03	Use of Mortgaged Property. 

  

	 	(a)	Unless required by applicable law, without the prior written consent of Lender, Borrower will not, and will not permit any Facility Operator to, take any of the following actions: 

 

	 	(i)	Allow changes in the use for which all or any part of the Mortgaged Property is being used at the time this Loan Agreement is executed. 

 

	 	(ii)	Convert any individual dwelling units or common areas to commercial use. 

  

	 	(iii)	Initiate a change in the zoning classification of the Mortgaged Property or acquiesce to a change in the zoning classification of the Mortgaged Property. 

 

	 	(iv)	Establish any condominium or cooperative regime with respect to the Mortgaged Property beyond any which may be in existence on the date of this Loan Agreement. 

 

	 	(v)	Combine all or any part of the Mortgaged Property with all or any part of a tax parcel which is not part of the Mortgaged Property. 

  

	 	(vi)	Subdivide or otherwise split any tax parcel constituting all or any part of the Mortgaged Property. 

  

	 	(vii)	Add to or change any location at which any of the Mortgaged Property is stored, held or located unless Borrower (A) gives Notice to Lender within 30 days after the occurrence of such addition or change,
(B) executes and delivers to Lender any modifications of or supplements to this Loan Agreement that Lender may require, and (C) authorizes the filing of any financing statement which may be filed in connection with this Loan Agreement, as
Lender may require. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 23

	 	(b)	Without the prior written consent of Lender, which may be granted or withheld in Lender’s discretion, Borrower will not, and will not permit any Facility Operator to, provide or contract for skilled nursing care,
assisted living care, Alzheimer’s care, memory care or dementia care for any of the residents other than that level of care which both (i) is consistent with the Intended Use and (ii) is permissible for Borrower or the Facility
Operator to provide at the Facility under (A) applicable Healthcare Laws, and (B) applicable Licenses. 

  

	 	(c)	Notwithstanding anything contained in this Section to the contrary, if Borrower is a housing cooperative corporation or association, Lender acknowledges and consents to Borrower’s use of the Mortgaged Property as a
housing cooperative. 

  

	6.04	Non-Residential Leases. 

  

	 	(a)	Prohibited New Non-Residential Leases or Modified Non-Residential Leases. Borrower will not enter into any New Non-Residential Lease, enter into any Modified Non-Residential Lease or terminate any Non-Residential
Lease (including any Non-Residential Lease in existence on the date of this Loan Agreement) without the prior written consent of Lender. 

  

	 	(b)	Reserved. 

  

	 	(c)	Executed Copies of Non-Residential Leases. Borrower will, without request by Lender, deliver a fully executed copy of each Non-Residential Lease to Lender promptly after such Non-Residential Lease is signed.

  

	 	(d)	Subordination and Attornment Requirements. All Non-Residential Leases will specifically include the following provisions: 

  

	 	(i)	The Lease is subordinate to the Lien of the Security Instrument, with such subordination to be self-executing. 

  

	 	(ii)	The tenant will attorn to Lender and any purchaser at a foreclosure sale, such attornment to be self-executing and effective upon acquisition of title to the Mortgaged Property by any purchaser at a foreclosure sale or
by Lender in any manner. 

  

	 	(iii)	The tenant agrees to execute such further evidences of attornment as Lender or any purchaser at a foreclosure sale may from time to time request. 

  

			
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	 	(iv)	The tenant will, upon receipt of a written request from Lender following the occurrence of and during the continuance of an Event of Default, pay all Rents payable under the Lease to Lender. 

 

	 	(v)	If Lender or a purchaser at a foreclosure sale so elects, the Lease will not be terminated by foreclosure or any other transfer of the Mortgaged Property. 

 

	 	(vi)	After a foreclosure sale of the Mortgaged Property, Lender or any other purchaser at such foreclosure sale may, at Lender’s or such purchaser’s option, accept or terminate such Lease without payment of any fee
or penalty. 

  

	6.05	Prepayment of Rents. Borrower will not receive or accept Rent under any Lease (whether a residential Lease or a Non-Residential Lease) for more than 2 months in advance. 

 

	6.06	Inspection. 

  

	 	(a)	Right of Entry. Borrower will permit Lender, its agents, representatives and designees and any interested Governmental Authority to make or cause to be made entries upon and inspections of the Mortgaged Property
to inspect, among other things: (i) Repairs, (ii) Capital Replacements, (iii) Restorations, (iv) Property Improvement Alterations, and (v) any other Improvements, both in process and upon completion (including environmental
inspections and tests performed by professional inspection engineers) during normal business hours, or at any other reasonable time, upon reasonable Notice to Borrower if the inspection is to include occupied residential units (which Notice need not
be in writing). During normal business hours, or at any other reasonable time, Borrower will also permit Lender to examine all books and records and contracts and bills pertaining to the foregoing. Notice to Borrower will not be required in the case
of an emergency, as determined in Lender’s Discretion, or when an Event of Default has occurred and is continuing. 

  

	 	(b)	Inspection of Mold. If Lender determines that Mold has or may have developed as a result of a water intrusion event or leak, Lender, at Lender’s Discretion, may require that a professional inspector inspect
the Mortgaged Property to confirm whether Mold has developed and, if so, thereafter as frequently as Lender determines is necessary until any issue with Mold and its cause(s) are resolved to Lender’s satisfaction. Such inspection will be
limited to a visual and olfactory inspection of the area that has experienced the Mold, water intrusion event or leak. Borrower will be responsible for the cost of each such professional inspection and any remediation deemed to be necessary as a
result of the professional inspection. After any issue with Mold is remedied to Lender’s satisfaction, Lender will not require a professional inspection any more frequently than once every 3 years unless Lender otherwise becomes aware of Mold
as a result of a subsequent water intrusion event or leak. 

  

			
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	 	(c)	Certification in Lieu of Inspection. If Lender or Loan Servicer determines not to conduct an annual inspection of the Mortgaged Property, and in lieu thereof Lender requests a certification, Borrower will provide
to Lender a factually correct certification, each year that the annual inspection is waived, to the following effect: 

Borrower has not received any written complaint, notice, letter or other written communication from any tenant, Property Manager, Facility
Operator or governmental authority regarding mold, fungus, microbial contamination or pathogenic organisms (“Mold”) or any activity, condition, event or omission that causes or facilitates the growth of Mold on or in any part of the
Mortgaged Property or, if Borrower has received any such written complaint, notice, letter or other written communication, that Borrower has investigated and determined that no Mold activity, condition or event exists or alternatively has fully and
properly remediated such activity, condition, event or omission in compliance with the Moisture Management Plan for the Mortgaged Property. 

If Borrower is unwilling or unable to provide such certification, Lender may require a professional inspection of the Mortgaged Property at
Borrower’s expense. 
  

	6.07	Books and Records; Financial Reporting. 

  

	 	(a)	Delivery of Books and Records. Borrower will keep and maintain at all times at the Mortgaged Property or the Property Manager’s or Facility Operator’s office, and upon Lender’s request will make
available at the Mortgaged Property (or, at Borrower’s option, at the Property Manager’s or Facility Operator’s office), complete and accurate books of account and records (including copies of supporting bills and invoices) adequate
to reflect correctly the operation of the Mortgaged Property, in accordance with GAAP consistently applied (or such other method which is reasonably acceptable to Lender), and copies of all written contracts, Leases, and other instruments which
affect the Mortgaged Property. The books, records, contracts, Leases and other instruments will be subject to examination and inspection by Lender at any reasonable time. 

 

	 	(b)	Delivery of Statement of Income and Expenses; Rent Schedule and Other Statements. Borrower will furnish to Lender each of the following: 

 

	 	(i)	Within 25 days after the end of each calendar quarter prior to Securitization and within 35 days after each calendar quarter after Securitization, each of the following: 

 

	 	(A)	A Rent Schedule dated no earlier than the date that is 5 days prior to the end of such quarter. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 26

	 	(B)	A statement of income and expenses for Borrower’s operation of the Mortgaged Property that is either of the following: 

  

	 	(1)	For the 12 month period ending on the last day of such quarter. 

  

	 	(2)	If at the end of such quarter Borrower or any Affiliate of Borrower has owned the Mortgaged Property for less than 12 months, for the period commencing with the acquisition of the Mortgaged Property by Borrower or its
Affiliate, and ending on the last day of such quarter. 

  

	 	(C)	When requested by Lender, a balance sheet showing all assets and liabilities of Borrower relating to the Mortgaged Property as of the end of that fiscal quarter. 

 

	 	(ii)	Within 90 days after the end of each fiscal year of Borrower, each of the following: 

  

	 	(A)	An annual statement of income and expenses for Borrower’s operation of the Mortgaged Property for that fiscal year. 

  

	 	(B)	A balance sheet showing all assets and liabilities of Borrower relating to the Mortgaged Property as of the end of that fiscal year and a profit and loss statement for Borrower. 

 

	 	(C)	An accounting of all security deposits held pursuant to all Leases, including the name of the institution (if any) and the names and identification numbers of the accounts (if any) in which such security deposits are
held and the name of the person to contact at such financial institution, along with any authority or release necessary for Lender to access information regarding such accounts. 

 

	 	(iii)	Within 30 days after the date of filing, copies of all tax returns filed by Borrower. 

  

	 	(c)	Delivery of Borrower Financial Statements Upon Request. Borrower will furnish to Lender each of the following: 

  

	 	(i)	Upon Lender’s request, in Lender’s sole and absolute discretion prior to a Securitization, and thereafter upon Lender’s request in Lender’s Discretion, a monthly Rent Schedule and a monthly statement
of income and expenses for Borrower’s operation of the Mortgaged Property, in each case within 25 days after the end of each month. 

  

			
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	 	(ii)	Upon Lender’s request in Lender’s sole and absolute discretion prior to a Securitization, and thereafter upon Lender’s request in Lender’s Discretion, a statement that identifies all owners of any
interest in Borrower and any Designated Entity for Transfers and the interest held by each (unless Borrower or any Designated Entity for Transfers is a publicly-traded entity in which case such statement of ownership will not be required), and if
Borrower or a Designated Entity for Transfers is a corporation then all officers and directors of Borrower and the Designated Entity for Transfers, and if Borrower or a Designated Entity for Transfers is a limited liability company then all Managers
who are not members, in each case within 10 days after such request. 

  

	 	(iii)	Upon Lender’s request in Lender’s Discretion, such other financial information or property management information (including information on tenants under Leases to the extent such information is available to
Borrower, copies of bank account statements from financial institutions where funds owned or controlled by Borrower are maintained, and an accounting of security deposits) as may be required by Lender from time to time, in each case within 30 days
after such request. 

  

	 	(iv)	Upon Lender’s request in Lender’s Discretion, a monthly property management report for the Mortgaged Property, showing the number of inquiries made and rental applications received from tenants or prospective
tenants and deposits received from tenants and any other information requested by Lender within 30 days after such request. However, Lender will not require the foregoing more frequently than quarterly except when there has been an Event of Default
and such Event of Default is continuing, in which case Lender may require Borrower to furnish the foregoing more frequently. 

  

	 	(d)	Form of Statements; Audited Financials. A natural person having authority to bind Borrower (or the SPE Equity Owner or Guarantor, as applicable) will certify each of the statements, schedules and reports required
by Sections 6.07(b), 6.07(c) and 6.07(f) to be complete and accurate. Each of the statements, schedules and reports required by Sections 6.07(b), 6.07(c) and 6.07(f) will be in such form and contain such detail as Lender may reasonably require.
Lender also may require that any of the statements, schedules or reports listed in Sections 6.07(b), 6.07(c) and 6.07(f) be audited at Borrower’s expense by independent certified public accountants acceptable to Lender, at any time when an
Event of Default has occurred and is continuing or at any time that Lender, in its reasonable judgment, determines that audited financial statements are required for an accurate assessment of the financial condition of Borrower or of the Mortgaged
Property. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 28

	 	(e)	Failure to Timely Provide Financial Statements. If Borrower fails to provide in a timely manner the statements, schedules and reports required by Sections 6.07(b), 6.07(c) and 6.07(f), Lender will give Notice to
Borrower specifying the statements, schedules and reports required by Sections 6.07(b), 6.07(c) and 6.07(f) that Borrower has failed to provide. If Borrower has not provided the required statements, schedules and reports within 10 Business Days
following such Notice, then (i) Borrower will pay a late fee of $500 for each late statement, schedule or report, plus an additional $500 per month that any such statement, schedule or report continues to be late, and (ii) Lender will have
the right to have Borrower’s books and records audited, at Borrower’s expense, by independent certified public accountants selected by Lender in order to obtain such statements, schedules and reports, and all related costs and expenses of
Lender will become immediately due and payable and will become an additional part of the Indebtedness as provided in Section 9.02. Notice to Borrower of Lender’s exercise of its rights to require an audit will not be required in the case
of an emergency, as determined in Lender’s Discretion, or when an Event of Default has occurred and is continuing. 

  

	 	(f)	Delivery of Guarantor and SPE Equity Owner Financial Statements Upon Request. Borrower will cause each Guarantor and, at Lender’s request in Lender’s Discretion, any SPE Equity Owner, to provide to
Lender (i) within 90 days after the close of such party’s fiscal year, such party’s balance sheet and profit and loss statement (or if such party is a natural person, within 90 days after the close of each calendar year, such
party’s personal financial statements) in form reasonably satisfactory to Lender and certified by such party to be accurate and complete, and (ii) such additional financial information (including copies of state and federal tax returns
with respect to any SPE Equity Owner but Lender will only require copies of such tax returns with respect to each Guarantor if an Event of Default has occurred and is continuing) as Lender may reasonably require from time to time and in such detail
as reasonably required by Lender. 

  

	 	(g)	Reporting Upon Event of Default. If an Event of Default has occurred and is continuing, Borrower will deliver to Lender upon written demand all books and records relating to the Mortgaged Property or its
operation. 

  

	 	(h)	Credit Reports. Borrower authorizes Lender to obtain a credit report on Borrower at any time. 

  

	 	(i)	Reserved. 

  

	6.08	Taxes; Operating Expenses; Ground Rents. 

  

	 	(a)	 Payment of Taxes and Ground Rent. Subject to the provisions of Sections 6.08(c) and (d), Borrower will pay or cause to be paid (i) all
Taxes when due and before the addition of any interest, fine, penalty or cost for nonpayment, and (ii) if Borrower’s interest in the Mortgaged Property is as a Ground Lessee, then the

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 29

	 	
monthly or other periodic installments of Ground Rent before the last date upon which each such installment may be made without penalty or interest charges being added. 

 

	 	(b)	Payment of Operating Expenses. Subject to the provisions of Section 6.08(c), Borrower will (i) pay the expenses of operating, managing, maintaining and repairing the Mortgaged Property (including
utilities, Repairs and Capital Replacements) before the last date upon which each such payment may be made without any penalty or interest charge being added, and (ii) pay Insurance premiums at least 30 days prior to the expiration date of each
policy of Insurance, unless applicable law specifies some lesser period. 

  

	 	(c)	Payment of Impositions and Reserve Funds. If Lender is collecting Imposition Reserve Deposits pursuant to Article IV, then so long as no Event of Default exists, Borrower will not be obligated to pay any
Imposition for which Imposition Reserve Deposits are being collected, whether Taxes, Insurance premiums, Ground Rent (if applicable) or any other individual Impositions, but only to the extent that sufficient Imposition Reserve Deposits are held by
Lender for the purpose of paying that specific Imposition and Borrower has timely delivered to Lender any bills or premium notices that it has received with respect to that specific Imposition (other than Ground Rent). Lender will have no liability
to Borrower for failing to pay any Impositions to the extent that: (i) any Event of Default has occurred and is continuing, (ii) insufficient Imposition Reserve Deposits are held by Lender at the time an Imposition becomes due and payable,
or (iii) Borrower has failed to provide Lender with bills and premium notices as provided in this Section. 

  

	 	(d)	Right to Contest. Borrower, at its own expense, may contest by appropriate legal proceedings, conducted diligently and in good faith, the amount or validity of any Imposition other than Insurance premiums and
Ground Rent (if applicable), if: (i) Borrower notifies Lender of the commencement or expected commencement of such proceedings, (ii) the Mortgaged Property is not in danger of being sold or forfeited, (iii) if Borrower has not already
paid the Imposition, Borrower deposits with Lender reserves sufficient to pay the contested Imposition, if requested by Lender, and (iv) Borrower furnishes whatever additional security is required in the proceedings or is reasonably requested
by Lender, which may include the delivery to Lender of reserves established by Borrower to pay the contested Imposition. 

  

	6.09	Preservation, Management and Maintenance of Mortgaged Property. 

  

	 	(a)	Maintenance of Mortgaged Property; No Waste. Borrower will keep the Mortgaged Property in good repair, including the replacement of Personalty and Fixtures with items of equal or better function and quality.
Borrower will not commit waste or permit impairment or deterioration of the Mortgaged Property. 

  

			
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	 	(b)	Abandonment of Mortgaged Property. Borrower will not abandon the Mortgaged Property. 

  

	 	(c)	Preservation of Mortgaged Property. Borrower will restore or repair promptly, in a good and workmanlike manner, any damaged part of the Mortgaged Property to the equivalent of its original condition, or such
other condition as Lender may approve in writing, whether or not Insurance proceeds or Condemnation awards are available to cover any costs of such Restoration or repair; provided, however, that Borrower will not be obligated to perform such
Restoration or repair if (i) no Event of Default has occurred and is continuing, and (ii) Lender has elected to apply any available Insurance proceeds and/or Condemnation awards to the payment of Indebtedness pursuant to
Section 6.10(l) or Section 6.11(d). 

  

	 	(d)	Property Management. Borrower will provide for professional management of the Mortgaged Property by the Property Manager at all times under a property management agreement approved by Lender in writing. Borrower
will not surrender, terminate, cancel, modify, renew or extend its property management agreement, or enter into any other agreement relating to the management or operation of the Mortgaged Property with Property Manager or any other Person, or
consent to the assignment by the Property Manager of its interest under such property management agreement, in each case without the consent of Lender, which consent will not be unreasonably withheld. 

 

	 	(i)	If at any time Lender consents to the appointment of a new Property Manager, such new Property Manager and Borrower will, as a condition of Lender’s consent, execute an Assignment of Management Agreement in a form
acceptable to Lender. 

  

	 	(ii)	If any such replacement Property Manager is an Affiliate of Borrower, and if a nonconsolidation opinion was delivered on the Closing Date, Borrower will deliver to Lender an updated nonconsolidation opinion in form and
substance satisfactory to Lender with regard to nonconsolidation. 

  

	 	(iii)	Reserved. 

  

	 	(e)	Alteration of Mortgaged Property. Borrower will give Notice to Lender of and, unless otherwise directed in writing by Lender, will appear in and defend any action or proceeding purporting to affect the Mortgaged
Property, Lender’s security or Lender’s rights under this Loan Agreement. Borrower will not (and will not permit any tenant or other Person to) remove, demolish or alter the Mortgaged Property or any part of the Mortgaged Property,
including any removal, demolition or alteration occurring in connection with a rehabilitation of all or part of the Mortgaged Property, except that each of the following is permitted: 

 

	 	(i)	Repairs or Capital Replacements pursuant to Sections 4.03 or 4.04. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 31

	 	(ii)	Repairs or Capital Replacements made in connection with the replacement of tangible Personalty. 

  

	 	(iii)	If Borrower is a cooperative housing corporation or association, Repairs or Capital Replacements to the extent permitted with respect to individual dwelling units under the form of a proprietary lease or occupancy
agreement. 

  

	 	(iv)	Repairs or Capital Replacements in connection with making an individual unit ready for a new occupant or pursuant to Sections 6.09(a) and (c). 

 

	 	(v)	Property Improvement Alterations, provided that each of the following conditions is satisfied: 

  

	 	(A)	At least 30 days prior to the commencement of any Property Improvement Alterations, Borrower must submit to Lender a Property Improvement Notice. The Property Improvement Notice must include all of the following
information: 

  

	 	(1)	The expected start date and completion date of the Property Improvement Alterations. 

  

	 	(2)	A description of the anticipated Property Improvement Alterations to be made. 

  

	 	(3)	The projected budget of the Property Improvement Alterations and the source of funding. 

 In
the event any changes to Property Improvement Alterations as described in the Property Improvement Notice are made that extend beyond the overall scope and intent of the Property Improvement Alterations set forth in the Property Improvement Notice
(e.g., renovations changed to renovate common areas but Property Improvement Notice only described renovations to the residential dwelling unit bathrooms), Borrower must submit a new Property Improvement Notice to Lender in accordance with
this subsection 6.09(e)(v)(A). 
  

	 	(B)	The Property Improvement Alterations may not be commenced within 12 months prior to the Maturity Date without prior written consent of the Lender and must be completed at least 6 months prior to the Maturity Date.

  

	 	(C)	Neither the performance nor completion of the Property Improvement Alterations may result in any of the following: 

  

	 	(1)	An adverse effect on any Major Building System. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 32

	 	(2)	A change in residential dwelling unit configurations on a permanent basis. 

  

	 	(3)	An increase or decrease in the total number of residential dwelling units. 

  

	 	(4)	The demolition of any existing Improvements. 

  

	 	(5)	A permanent obstruction of tenants’ access to units or a temporary obstruction of tenants’ access to units without a reasonable alternative access provided during the period of renovation which causes the
obstruction. 

  

	 	(D)	The cost of the Property Improvement Alterations made to residential dwelling units during the term of the Mortgage must not exceed the Property Improvement Total Amount. 

 

	 	(E)	The Leases used to calculate Minimum Occupancy for use in Section 6.09(e)(v)(I) must meet all of the following conditions: 

  

	 	(1)	The Leases are with tenants that are not Affiliates of Borrower or Guarantor (except as otherwise expressly agreed by Lender in writing). 

 

	 	(2)	The Leases are on arms’ length terms and conditions. 

  

	 	(3)	The Leases otherwise satisfy the requirements of the Loan Documents. 

  

	 	(F)	The Property Improvement Alterations must be completed in accordance with Section 6.14 and any reference to Repairs in Sections 6.06 and 6.14 will be deemed to include Property Improvement Alterations.

  

	 	(G)	Upon completion of the applicable Property Improvement Alterations, Borrower must provide all of the following to the Lender: 

  

	 	(1)	Borrower’s Certificate of Property Improvement Alterations Completion, in the form attached as Exhibit O (“Certificate of Completion”). 

 

	 	(2)	Any other certificates or approval, acceptance or compliance required by Lender, including certificates of occupancy, from any Governmental Authority having jurisdiction over the Mortgaged Property and the Property
Improvement Alterations and professional engineers certifications. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 33

	 	(H)	Borrower must deliver to Lender within 10 days of Lender’s request a written status update on the Property Improvement Alterations. 

 

	 	(I)	While Property Improvement Alterations that result in individual residential dwelling units not being available for leasing are ongoing, if a Rent Schedule shows that the occupancy of the Mortgaged Property has
decreased to less than the Minimum Occupancy, Borrower must take each of the following actions: 

  

	 	(1)	Complete all pending Property Improvement Alterations to such individual residential dwelling units in a timely manner until the Mortgaged Property satisfies the Minimum Occupancy requirement. 

 

	 	(2)	Suspend any additional Property Improvement Alterations which would cause residential dwelling units to be unavailable for leasing until the Mortgaged Property satisfies the Minimum Occupancy requirement.

  

	 	(J)	In the event Property Improvement Alterations have commenced on the Mortgaged Property, Borrower will deliver to Lender, upon Lender’s request, the Certificate of Completion together with such additional
information as Lender may request within a timely manner. 

  

	 	(K)	At no time during the term of the Mortgage may the Property Improvement Total Amount (including any amounts expended by Borrower on Property Improvement Alterations for Non-Residential Units) outstanding for services
and/or materials that are then due and payable exceed 10% of the original principal loan amount; provided that at no time will such amount exceed the Property Improvement Total Amount. 

 

	 	(vi)	Reserved. 

  

	 	(vii)	Reserved. 

  

	 	(viii)	Reserved. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 34

	 	(f)	Establishment of MMP. Unless otherwise waived by Lender in writing, Borrower will have or will establish and will adhere to the MMP. If Borrower is required to have an MMP, Borrower will keep all MMP
documentation at the Mortgaged Property or at the Property Manager’s or the Facility Operator’s office and available for review by Lender or the Loan Servicer during any annual assessment or other inspection of the Mortgaged Property that
is required by Lender. At a minimum, the MMP must contain a provision for: (i) staff training, (ii) information to be provided to tenants, (iii) documentation of the plan, (iv) the appropriate protocol for incident response and
remediation, and (v) routine, scheduled inspections of common space and unit interiors. 

  

	 	(g)	No Reduction of Housing Cooperative Charges. If Borrower is a housing cooperative corporation or association, until the Indebtedness is paid in full, Borrower will not reduce the maintenance fees, charges or
assessments payable by shareholders or residents under proprietary leases or occupancy agreements below a level which is sufficient to pay all expenses of Borrower, including all operating and other expenses for the Mortgaged Property and all
payments due pursuant to the terms of the Note and any Loan Documents. 

  

	 	(h)	through (k) are reserved. 

  

	6.10	Insurance. At all times during the term of this Loan Agreement, Borrower will maintain at its sole cost and expense, for the mutual benefit of Borrower and Lender, all of the Insurance specified in this
Section 6.10, as required by Lender and applicable law, and in such amounts and with such maximum deductibles as Lender may require, as those requirements may change: 

 

	 	(a)	Property Insurance. Borrower will keep the Improvements insured at all times against relevant physical hazards that may cause damage to the Mortgaged Property as Lender may require (“Property
Insurance”). Required Property Insurance coverage may include any or all of the following: 

  

	 	(i)	All Risks of Physical Loss. Insurance against loss or damage from fire, wind, hail, and other related perils within the scope of a “Special Causes of Loss” or “All Risk” policy, in an amount
not less than the Replacement Cost of the Mortgaged Property. 

  

	 	(ii)	Ordinance and Law. If any part of the Mortgaged Property is legal non-conforming under current building, zoning or land use laws or ordinances, then “Ordinance and Law Coverage” in the amount required
by Lender. 

  

	 	(iii)	Flood. If any of the Improvements are located in an area identified by the Federal Emergency Management Agency (or any successor to that agency) as a “Special Flood Hazard Area,” flood Insurance in the
amount required by Lender. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 35

	 	(iv)	Windstorm. If windstorm and/or windstorm related perils and/or “named storm” are excluded from the “Special Causes of Loss” policy required under Section 6.10(a)(i), then separate
coverage for such risks (“Windstorm Coverage”), either through an endorsement or a separate policy. Windstorm Coverage will be written in an amount not less than the Replacement Cost of the Mortgaged Property. 

 

	 	(v)	Boiler and Machinery/Equipment Breakdown. If the Mortgaged Property contains a central heating, ventilation and cooling system (“HVAC System”) where steam boilers and/or other pressurized systems
are in operation and are regulated by the Property Jurisdiction, Insurance providing coverage in the amount required by Lender. 

  

	 	(vi)	Builder’s Risk. During any period of construction or Restoration, builder’s risk Insurance (including fire and other perils within the scope of a policy known as “Causes of Loss – Special
Form” or “All Risk” policy) in an amount not less than the sum of the related contractual arrangements. 

  

	 	(vii)	Other. Insurance for other physical perils applicable to the Mortgaged Property as may be required by Lender including earthquake, sinkhole, mine subsidence, avalanche, mudslides, and volcanic eruption. If Lender
reasonably requires any updated reports or other documentation to determine whether additional Insurance is necessary or prudent, Borrower will pay for the updated reports or other documentation at its sole cost and expense. 

 

	 	(viii)	Professional Liability. Required if the Mortgaged Property has assisted living, Alzheimer’s care, or skilled nursing units. The policy may be written on a “Claims Made Policy” form or an
“Occurrence-based Policy” form. Minimum coverage of $1,000,000 per occurrence and $2,000,000 in the general aggregate is required. If the professional liability policy covers multiple locations, aggregate limits apply per location. In
addition, Borrower must maintain the following minimum umbrella or excess professional liability coverage: 

  

					
	 Total number of licensed beds covered by the policy
	  	Minimum Umbrella/
Excess Coverage	 
	 Less than or equal to 100
	  	$	1 million	  
	 100 to 500
	  	$	5 million	  
	 501 to 1,000
	  	$	10 million	  
	 Greater than 1,000
	  	$	25 million	  

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 36

 The minimum coverage limits in this section may be satisfied with any combination of primary,
umbrella and/or excess coverage. 
  

	 	(ix)	Reserved. 

  

	 	(b)	Business Income/Rental Value. Business income/rental value Insurance for all relevant perils to be covered in the amount required by Lender, but in no case less than the effective gross income attributable to the
Mortgaged Property for the preceding 12 months, as determined by Lender in Lender’s Discretion. 

  

	 	(c)	Commercial General Liability Insurance. Commercial general liability Insurance against legal liability claims for personal and bodily injury, property damage and contractual liability in such amounts and with
such maximum deductibles as Lender may require, but not less than $1,000,000 per occurrence and $2,000,000 in the general aggregate on a per-location basis, plus excess and/or umbrella liability coverage in such amounts as Lender may require.

  

	 	(d)	Terrorism Insurance. Insurance required under Section 6.10(a)(i) and (ii) and Section 6.10(b) will provide coverage for acts of terrorism. Terrorism coverage may be provided through one or more
separate policies, which will be on terms (including amounts) consistent with those required under Section 6.10(a)(i) and (ii) and Section 6.10(b). If Insurance against acts of terrorism is not available at commercially reasonable
rates and if the related hazards are not at the time commonly insured against for properties similar to the Mortgaged Property and located in or around the region in which the Mortgaged Property is located, then Lender may opt to temporarily
suspend, cap or otherwise limit the requirement to have such terrorism insurance for a period not to exceed one year, unless such suspension or cap is renewed by Lender for additional one year increments. 

 

	 	(e)	Payment of Premiums. All Property Insurance premiums and premiums for other Insurance required under this Section 6.10 will be paid in the manner provided in Article IV, unless Lender has designated in
writing another method of payment. 

  

	 	(f)	Policy Requirements. The following requirements apply with respect to all Insurance required by this Section 6.10: 

  

	 	(i)	All Insurance policies will be in a form approved by Lender. 

  

	 	(ii)	All Insurance policies will be issued by Insurance companies authorized to do business in the Property Jurisdiction and/or acting as eligible surplus insurers in the Property Jurisdiction, and which have a general
policyholder’s rating satisfactory to Lender. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 37

	 	(iii)	All Property Insurance policies will contain a standard mortgagee or mortgage holder’s clause and a loss payable clause, in favor of, and in a form approved by, Lender. 

 

	 	(iv)	If any Insurance policy contains a coinsurance clause, the coinsurance clause will be offset by an agreed amount endorsement in an amount not less than the Replacement Cost. 

 

	 	(v)	All commercial general liability and excess/umbrella liability policies will name Lender, its successors and/or assigns, as additional insured. 

 

	 	(vi)	Professional liability policies will not include Lender, its successors and/or assigns, as additional insured. 

  

	 	(vii)	All Insurance policies will provide that the insurer will notify the Lender in writing of cancelation of policies at least 10 days before the cancelation of the policy by the insurer for nonpayment of the premium or
nonrenewal and at least 30 days before cancelation by the insurer for any other reason. 

  

	 	(g)	Evidence of Insurance; Insurance Policy Renewals. Borrower will deliver to Lender a legible copy of each Insurance policy, and Borrower will promptly deliver to Lender a copy of all renewal and other notices
received by Borrower with respect to the policies. Borrower will ensure that the Mortgaged Property is continuously covered by the required Insurance. At least 15 days prior to the expiration date of each Insurance policy, Borrower will deliver
to Lender evidence acceptable to Lender in Lender’s Discretion that each policy has been renewed. If the evidence of a renewal does not include a legible copy of the renewal policy, Borrower will deliver a legible copy of such renewal no later
than the earlier of the following: 

  

	 	(i)	60 days after the expiration date of the original policy. 

  

	 	(ii)	The date of any Notice of an insured loss given to Lender under Section 6.10(i). 

  

	 	(h)	Compliance With Insurance Requirements. Borrower will comply with all Insurance requirements and will not permit any condition to exist on the Mortgaged Property that would invalidate any part of any Insurance
coverage required under this Loan Agreement. 

  

	 	(i)	Obligations Upon Casualty; Proof of Loss. 

  

	 	(i)	If an insured loss occurs, then Borrower will give immediate written notice to the Insurance carrier and to Lender. 

  

	 	(ii)	Borrower authorizes and appoints Lender as attorney in fact for Borrower to make proof of loss, to adjust and compromise any claims under policies of Property Insurance, to appear in and prosecute any action arising
from such Property Insurance policies, to collect and receive the proceeds of Property Insurance, to hold the proceeds of Property Insurance, and to deduct from such proceeds Lender’s expenses incurred in the collection of such proceeds. This
power of attorney is coupled with an interest and therefore is irrevocable. However, nothing contained in this Section 6.10 will require Lender to incur any expense or take any action. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 38

	 	(j)	Lender’s Options Following a Casualty. Lender may, at Lender’s option, take one of the following actions: 

  

	 	(i)	Require a “repair or replacement” settlement, in which case the proceeds will be used to reimburse Borrower for the cost of restoring and repairing the Mortgaged Property to the equivalent of its original
condition or to a condition approved by Lender (“Restoration”). If Lender determines to require a repair or replacement settlement and to apply Insurance proceeds to Restoration, Lender will apply the proceeds in accordance with
Lender’s then-current policies relating to the Restoration of casualty damage on similar multifamily properties. If Lender, in Lender’s Discretion, retains a professional inspection engineer or other qualified third party to inspect any
Restoration items, Lender may charge Borrower an amount sufficient to pay all reasonable costs and expenses charged by such third party inspector. 

  

	 	(ii)	Require an “actual cash value” settlement in which case the proceeds may be applied to the payment of the Indebtedness, whether or not then due. 

 

	 	(k)	Borrower’s Options Following a Casualty. Subject to Section 6.10(l), Borrower may take the following actions: 

  

	 	(i)	If a casualty results in damage to the Mortgaged Property for which the cost of Repairs will be less than the Borrower Proof of Loss Threshold, Borrower will have the sole right to make proof of loss, adjust and
compromise the claim and collect and receive any proceeds directly without the approval or prior consent of Lender so long as the Insurance proceeds are used solely for the Restoration of the Mortgaged Property. 

 

	 	(ii)	If a casualty results in damage to the Mortgaged Property for which the cost of Repairs will be more than the Borrower Proof of Loss Threshold, but less than the Borrower Proof of Loss Maximum, Borrower is authorized to
make proof of loss and adjust and compromise the claim without the prior consent of Lender, and Lender will hold the applicable Insurance proceeds to be used to reimburse Borrower for the cost of Restoration of the Mortgaged Property and will not
apply such proceeds to the payment of the Indebtedness. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 39

	 	(l)	Lender’s Right to Apply Insurance Proceeds to Indebtedness. Lender will have the right to apply Insurance proceeds to the payment of the Indebtedness if Lender determines, in Lender’s Discretion, that
any of the following conditions are met: 

  

	 	(i)	An Event of Default (or any event, which, with the giving of Notice or the passage of time, or both, would constitute an Event of Default) has occurred and is continuing. 

 

	 	(ii)	There will not be sufficient funds from Insurance proceeds, anticipated contributions of Borrower of its own funds or other sources acceptable to Lender to complete the Restoration. 

 

	 	(iii)	The rental income from the Mortgaged Property after completion of the Restoration will not be sufficient to meet all operating costs and other expenses, deposits to Reserve Funds and Loan repayment obligations relating
to the Mortgaged Property. 

  

	 	(iv)	The Restoration will be completed less than (A) 6 months prior to the Maturity Date if re-leasing will be completed prior to the Maturity Date, or (B) 12 months prior to the Maturity Date if re-leasing will
not be completed prior to the Maturity Date. 

  

	 	(v)	The Restoration will not be completed within one year after the date of the loss or casualty. 

  

	 	(vi)	The casualty involved an actual or constructive loss of more than 30% of the fair market value of the Mortgaged Property, and rendered untenantable more than 30% of the residential units of the Mortgaged Property.

  

	 	(vii)	After completion of the Restoration the fair market value of the Mortgaged Property is expected to be less than the fair market value of the Mortgaged Property immediately prior to such casualty (assuming the affected
portion of the Mortgaged Property is re-let within a reasonable period after the date of such casualty). 

  

	 	(viii)	Leases covering less than 35% of the residential units of the Mortgaged Property will remain in full force and effect during and after the completion of Restoration. 

 

	 	(m)	Lender’s Succession to Insurance Policies. If the Mortgaged Property is sold at a foreclosure sale or Lender acquires title to the Mortgaged Property, Lender will automatically succeed to all rights of
Borrower in and to any Insurance policies and unearned Insurance premiums and in and to the proceeds resulting from any damage to the Mortgaged Property prior to such sale or acquisition. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 40

	 	(n)	Payment of Installments After Application of Insurance Proceeds. Unless Lender otherwise agrees in writing, any application of any Insurance proceeds to the Indebtedness will not extend or postpone the due date
of any monthly installments referred to in the Note, Article IV of this Loan Agreement or change the amount of such installments. 

  

	 	(o)	Assignment of Insurance Proceeds. Borrower agrees to execute such further evidence of assignment of any Insurance proceeds as Lender may require. 

 

	 	(p)	Borrower Acknowledgment of Lender’s Right to Change Insurance Requirements. Borrower acknowledges and agrees that Lender’s Insurance requirements may change from time to time throughout the term of the
Indebtedness to include coverage for the kind of risks customarily insured against and in such minimum coverage amounts and maximum deductibles as are generally required by institutional lenders for properties comparable to the Mortgaged Property.

  

	6.11	Condemnation. 

  

	 	(a)	Rights Generally. Borrower will promptly notify Lender in writing of any action or proceeding or notice relating to any proposed or actual condemnation or other taking, or conveyance in lieu thereof, of all or
any part of the Mortgaged Property, whether direct or indirect (“Condemnation”). Borrower will appear in and prosecute or defend any action or proceeding relating to any Condemnation unless otherwise directed by Lender in writing.
Borrower authorizes and appoints Lender as attorney in fact for Borrower to commence, appear in and prosecute, in Lender’s or Borrower’s name, any action or proceeding relating to any Condemnation and to settle or compromise any claim in
connection with any Condemnation, after consultation with Borrower and consistent with commercially reasonable standards of a prudent lender. This power of attorney is coupled with an interest and therefore is irrevocable. However, nothing contained
in this Section 6.11(a) will require Lender to incur any expense or take any action. Borrower transfers and assigns to Lender all right, title and interest of Borrower in and to any award or payment with respect to (i) any Condemnation, or
any conveyance in lieu of Condemnation, and (ii) any damage to the Mortgaged Property caused by governmental action that does not result in a Condemnation. 

  

	 	(b)	 Application of Award. Lender may hold such awards or proceeds and apply such awards or proceeds, after the deduction of Lender’s expenses
incurred in the collection of such amounts (including Attorneys’ Fees and Costs) at Lender’s option, to the Restoration or repair of the Mortgaged Property or to the payment of the Indebtedness, with the balance, if any, to Borrower.
Unless Lender otherwise agrees in writing, any application of any awards or proceeds to the 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 41

	 	
Indebtedness will not extend or postpone the due date of any monthly installments referred to in the Note or Article IV of this Loan Agreement, or change the amount of such installments.
Borrower agrees to execute such further evidence of assignment of any Condemnation awards or proceeds as Lender may require. 

  

	 	(c)	Borrower’s Right to Condemnation Proceeds. Notwithstanding any provision to the contrary in this Section 6.11, but subject to Section 6.11(e), in the event of a partial Condemnation of the
Mortgaged Property, as long as no Event of Default, or any event which, with the giving of Notice or the passage of time, or both, would constitute an Event of Default, has occurred and is continuing, in the event of a partial Condemnation resulting
in proceeds or awards in the amount of less than $100,000, Borrower will have the sole right to make proof of loss, adjust and compromise the claim and collect and receive any proceeds directly without the approval or prior consent of Lender so long
as the proceeds or awards are used solely for the Restoration of the Mortgaged Property. 

  

	 	(d)	Right to Apply Condemnation Proceeds to Indebtedness. In the event of a partial Condemnation of the Mortgaged Property resulting in proceeds or awards in the amount of $100,000 or more and subject to
Section 6.11(e), Lender will have the right to exercise its option to apply Condemnation proceeds to the payment of the Indebtedness only if Lender, in Lender’s Discretion, determines that at least one of the following conditions is met:

  

	 	(i)	An Event of Default (or any event, which, with the giving of Notice or the passage of time, or both, would constitute an Event of Default) has occurred and is continuing. 

 

	 	(ii)	There will not be sufficient funds from Condemnation proceeds, anticipated contributions of Borrower of its own funds or other sources acceptable to Lender to complete the Restoration. 

 

	 	(iii)	The rental income from the Mortgaged Property after completion of the Restoration will not be sufficient to meet all operating costs and other expenses, deposits to Reserve Funds and Loan repayment obligations relating
to the Mortgaged Property. 

  

	 	(iv)	The Restoration will not be completed at least one year before the Maturity Date (or 6 months before the Maturity Date if re-leasing of the Mortgaged Property will be completed within such 6 month period).

  

	 	(v)	The Restoration will not be completed within one year after the date of the Condemnation. 

  

	 	(vi)	The Condemnation involved an actual or constructive loss of more than 15% of the fair market value of the Mortgaged Property, and rendered untenantable more than 25% of the residential units of the Mortgaged Property.

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 42

	 	(vii)	After Restoration the fair market value of the Mortgaged Property is expected to be less than the fair market value of the Mortgaged Property immediately prior to the Condemnation (assuming the affected portion of the
Mortgaged Property is re-let within a reasonable period after the date of the Condemnation). 

  

	 	(viii)	Leases covering less than 35% of residential units of the Mortgaged Property will remain in full force and effect during and after the completion of Restoration. 

 

	 	(e)	Right to Apply Condemnation Proceeds in Connection with a Partial Release. Notwithstanding anything to the contrary set forth in this Loan Agreement, including this Section 6.11, for so long as the Loan or
any portion of the Loan is included in a Securitization in which the Note is assigned to a REMIC trust, then each of the following will apply: 

  

	 	(i)	If any portion of the Mortgaged Property is released from the Lien of the Loan in connection with a Condemnation and if the ratio of (A) the unpaid principal balance of the Loan to (B) the value of the
Mortgaged Property (with the value of the Mortgaged Property first being reduced by the outstanding principal balance of any Senior Indebtedness or any indebtedness secured by the Mortgaged Property that is at the same level of priority with the
Indebtedness and taking into account only the related land and buildings and not any personal property or going-concern value), as determined by Lender in its sole and absolute discretion based on a commercially reasonable valuation method permitted
in connection with a Securitization, is greater than 125% immediately after such Condemnation and before any Restoration or repair of the Mortgaged Property (but taking into account any planned Restoration or repair of the Mortgaged Property as if
such planned Restoration or repair were completed), then Lender will apply any net proceeds or awards from such Condemnation, in full, to the payment of the principal of the Indebtedness whether or not then due and payable, unless Lender has
received an opinion of counsel (acceptable to Lender if such opinion is provided by Borrower) that a different application of the net proceeds or awards will not cause such Securitization to fail to meet applicable federal income tax qualification
requirements or subject such Securitization to any tax, and the net proceeds or awards are applied in the manner specified in such opinion. 

  

	 	(ii)	 If (A) neither Borrower nor Lender has the right to receive any or all net proceeds or awards as a result of the provisions of any agreement
affecting the Mortgaged Property (including any Ground Lease (if applicable), condominium document, or reciprocal easement agreement) and, therefore 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 43

	 	
cannot apply the net proceeds or awards to the payment of the principal of the Indebtedness as set forth above, or (B) Borrower receives any or all of the proceeds or awards described in
Section 6.11(e)(ii)(A) and fails to apply the proceeds in accordance with Section 6.11(e)(i), then Borrower will prepay the Indebtedness in an amount which Lender, in its sole and absolute discretion, deems necessary to ensure that the
Securitization will not fail to meet applicable federal income tax qualification requirements or be subject to any tax as a result of the Condemnation, unless Lender has received an opinion of counsel (acceptable to Lender if such opinion is
provided by Borrower) that a different application of the net proceeds or awards will not cause such Securitization to fail to meet applicable federal income tax qualification requirements or subject such Securitization to any tax, and the net
proceeds or awards are applied in the manner specified in such opinion. 

  

	 	(f)	Succession to Condemnation Proceeds. If the Mortgaged Property is sold at a foreclosure sale or Lender acquires title to the Mortgaged Property, Lender will automatically succeed to all rights of Borrower in and
to any Condemnation proceeds and awards prior to such sale or acquisition. 

  

	6.12	Environmental Hazards. 

  

	 	(a)	Prohibited Activities and Conditions. Except for matters described in this Section 6.12, Borrower will not cause or permit Prohibited Activities or Conditions. Borrower will comply with all Hazardous
Materials Laws applicable to the Mortgaged Property. Without limiting the generality of the previous sentence, Borrower will: (i) obtain and maintain all Environmental Permits required by Hazardous Materials Laws and comply with all conditions
of such Environmental Permits, (ii) cooperate with any inquiry by any Governmental Authority, and (iii) comply with any governmental or judicial order that arises from any alleged Prohibited Activity or Condition. 

 

	 	(b)	Employees, Tenants and Contractors. Borrower will take all commercially reasonable actions (including the inclusion of appropriate provisions in any Leases executed after the date of this Loan Agreement) to
prevent its employees, agents and contractors, and all tenants and other occupants from causing or permitting any Prohibited Activities or Conditions. Borrower will not lease or allow the sublease or use of all or any portion of the Mortgaged
Property to any tenant or subtenant for nonresidential use by any user that, in the ordinary course of its business, would cause or permit any Prohibited Activity or Condition. 

 

	 	(c)	 O&M Programs. As required by Lender, Borrower will also have established a written operations and maintenance program with respect to
certain Hazardous Materials. Each such operations and maintenance program and any additional or revised operations and maintenance programs established for the Mortgaged Property pursuant to this Section 6.12 must be approved by Lender and will
be 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 44

	 	
referred to in this Loan Agreement as an “O&M Program.” Borrower will comply in a timely manner with, and cause all employees, agents, and contractors of Borrower and
any other Persons present on the Mortgaged Property to comply with each O&M Program. Borrower will pay all costs of performance of Borrower’s obligations under any O&M Program, and Lender’s out of pocket costs incurred in
connection with the monitoring and review of each O&M Program must be paid by Borrower upon demand by Lender. Any such out-of-pocket costs of Lender that Borrower fails to pay promptly will become an additional part of the Indebtedness as
provided in Section 9.02. 

  

	 	(d)	Notice to Lender. Borrower will promptly give Notice to Lender upon the occurrence of any of the following events: 

  

	 	(i)	Borrower’s discovery of any Prohibited Activity or Condition. 

  

	 	(ii)	Borrower’s receipt of or knowledge of any written complaint, order, notice of violation or other communication from any tenant, Property Manager, Facility Operator, Governmental Authority or other Person with
regard to present or future alleged Prohibited Activities or Conditions, or any other environmental, health or safety matters affecting the Mortgaged Property. 

  

	 	(iii)	Borrower’s breach of any of its obligations under this Section 6.12. 

 Any such
Notice given by Borrower will not relieve Borrower of, or result in a waiver of, any obligation under this Loan Agreement, the Note or any other Loan Document. 
  

	 	(e)	 Environmental Inspections, Tests and Audits. Borrower will pay promptly the costs of any environmental inspections, tests or audits, a purpose
of which is to identify the extent or cause of or potential for a Prohibited Activity or Condition (“Environmental Inspections”), required by Lender in connection with any foreclosure or deed in lieu of foreclosure, or as a
condition of Lender’s consent to any Transfer under Article VII, or required by Lender following a reasonable determination by Lender that Prohibited Activities or Conditions may exist. Any such costs incurred by Lender (including
Attorneys’ Fees and Costs and the costs of technical consultants whether incurred in connection with any judicial or administrative process or otherwise) that Borrower fails to pay promptly will become an additional part of the Indebtedness as
provided in Section 9.02. As long as: (i) no Event of Default has occurred and is continuing, (ii) Borrower has actually paid for or reimbursed Lender for all costs of any such Environmental Inspections performed or required by
Lender, and (iii) Lender is not prohibited by law, contract or otherwise from doing so, Lender will make available to Borrower, without representation of any kind, copies of Environmental Inspections prepared by third parties and delivered to
Lender. Lender reserves the right, and Borrower expressly authorizes Lender, to make available to any party, including any prospective bidder at a foreclosure sale of the Mortgaged Property,

  

			
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the results of any Environmental Inspections made by or for Lender with respect to the Mortgaged Property. Borrower consents to Lender notifying any party (either as part of a notice of sale or
otherwise) of the results of any Environmental Inspections made by or for Lender. Borrower acknowledges that Lender cannot control or otherwise ensure the truthfulness or accuracy of the results of any Environmental Inspections and that the release
of such results to prospective bidders at a foreclosure sale of the Mortgaged Property may have a material and adverse effect upon the amount that a party may bid at such sale. Borrower agrees that Lender will have no liability whatsoever as a
result of delivering the results of any Environmental Inspections made by or for Lender to any third party, and Borrower releases and forever discharges Lender from any and all claims, damages or causes of action arising out of, connected with or
incidental to the results of the delivery of any Environmental Inspections made by or for Lender. 

  

	 	(f)	Remedial Work. If any investigation, site monitoring, containment, clean-up, Restoration or other remedial work (“Remedial Work”) is necessary to comply with any Hazardous Materials Law or order
of any Governmental Authority that has or acquires jurisdiction over the Mortgaged Property or the use, operation or improvement of the Mortgaged Property, or is otherwise required by Lender as a consequence of any Prohibited Activity or Condition
or to prevent the occurrence of a Prohibited Activity or Condition, Borrower will, by the earlier of (i) the applicable deadline required by Hazardous Materials Law, or (ii) 30 days after Notice from Lender demanding such action, begin
performing the Remedial Work, and thereafter diligently prosecute it to completion, and must in any event complete the work by the time required by applicable Hazardous Materials Law. If Borrower fails to begin on a timely basis or diligently
prosecute any required Remedial Work, Lender may, at its option, cause the Remedial Work to be completed, in which case Borrower will reimburse Lender on demand for the cost of doing so. Any reimbursement due from Borrower to Lender will become part
of the Indebtedness as provided in Section 9.02. 

  

	6.13	Single Purpose Entity Requirements. 

  

	 	(a)	Single Purpose Entity Requirements. Until the Indebtedness is paid in full, each Borrower and any SPE Equity Owner will remain a “Single Purpose Entity,” which means at all times since its
formation and thereafter it will satisfy each of the following conditions: 

  

	 	(i)	It will not engage in any business or activity, other than the ownership, operation and maintenance of the Mortgaged Property and activities incidental thereto. 

 

	 	(ii)	It will not acquire, own, hold, lease, operate, manage, maintain, develop or improve any assets other than the Mortgaged Property and such Personalty as may be necessary for the operation of the Mortgaged Property and
will conduct and operate its business as presently conducted and operated. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 46

	 	(iii)	It will preserve its existence as an entity duly organized, validly existing and in good standing (if applicable) under the laws of the jurisdiction of its formation or organization and will do all things necessary to
observe organizational formalities. 

  

	 	(iv)	It will not merge or consolidate with any other Person. 

  

	 	(v)	It will not take any action to dissolve, wind-up, terminate or liquidate in whole or in part; to sell, transfer or otherwise dispose of all or substantially all of its assets; to change its legal structure; transfer or
permit the direct or indirect transfer of any partnership, membership or other equity interests, as applicable, other than Transfers permitted under this Loan Agreement; issue additional partnership, membership or other equity interests, as
applicable, or seek to accomplish any of the foregoing. 

  

	 	(vi)	It will not, without the prior unanimous written consent of all of Borrower’s partners, members, or shareholders, as applicable, and, if applicable, the prior unanimous written consent of 100% of the members of the
board of directors or of the board of Managers of Borrower or the SPE Equity Owner, take any of the following actions: 

 (A)
File any insolvency, or reorganization case or proceeding, to institute proceedings to have Borrower or any SPE Equity Owner be adjudicated bankrupt or insolvent. 

(B) Institute proceedings under any applicable insolvency law. 

(C) Seek any relief under any law relating to relief from debts or the protection of debtors. 

(D) Consent to the filing or institution of bankruptcy or insolvency proceedings against Borrower or any SPE Equity Owner. 

(E) File a petition seeking, or consent to, reorganization or relief with respect to Borrower or any SPE Equity Owner under any applicable
federal or state law relating to bankruptcy or insolvency. 
 (F) Seek or consent to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator, custodian, or any similar official for Borrower or a substantial part of its property or for any SPE Equity Owner or a substantial part of its property. 

(G) Make any assignment for the benefit of creditors of Borrower or any SPE Equity Owner. 

  

			
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	 	(H)	Admit in writing Borrower’s or any SPE Equity Owner’s inability to pay its debts generally as they become due. 

  

	 	(I)	Take action in furtherance of any of the foregoing. 

  

	 	(vii)	It will not amend or restate its organizational documents if such change would cause the provisions set forth in those organizational documents not to comply with the requirements set forth in this Section 6.13.

  

	 	(viii)	It will not own any subsidiary or make any investment in, any other Person. 

  

	 	(ix)	It will not commingle its assets with the assets of any other Person and will hold all of its assets in its own name. 

  

	 	(x)	It will not incur any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than the following: 

 

	 	(A)	The Indebtedness and any further indebtedness as described in Section 11.11 with regard to Supplemental Instruments. 

  

	 	(B)	Customary unsecured trade payables incurred in the ordinary course of owning and operating the Mortgaged Property provided the same are not evidenced by a promissory note, do not exceed, in the aggregate, at any time a
maximum amount of 2% of the original principal amount of the Indebtedness and are paid within 60 days of the date incurred. 

  

	 	(C)	through (F) are reserved. 

  

	 	(xi)	It will maintain its records, books of account, bank accounts, financial statements, accounting records and other entity documents separate and apart from those of any other Person and will not list its assets as assets
on the financial statement of any other Person; provided, however, that Borrower’s assets may be included in a consolidated financial statement of its Affiliate provided that (A) appropriate notation will be made on such consolidated
financial statements to indicate the separateness of Borrower from such Affiliate and to indicate that Borrower’s assets and credit are not available to satisfy the debts and other obligations of such Affiliate or any other Person, and
(B) such assets will also be listed on Borrower’s own separate balance sheet. 

  

	 	(xii)	 Except for capital contributions or capital distributions permitted under the terms and conditions of its organizational documents, it will only enter
into any contract or agreement with any general partner, member, shareholder, principal or Affiliate of Borrower or any Guarantor, or any 

  

			
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general partner, member, principal or Affiliate thereof, upon terms and conditions that are commercially reasonable and substantially similar to those that would be available on an
arm’s-length basis with third parties. 

  

	 	(xiii)	It will not maintain its assets in such a manner that will be costly or difficult to segregate, ascertain or identify its individual assets from those of any other Person. 

 

	 	(xiv)	It will not assume or guaranty (excluding any guaranty that has been executed and delivered in connection with the Note) the debts or obligations of any other Person, hold itself out to be responsible for the debts of
another Person, pledge its assets to secure the obligations of any other Person or otherwise pledge its assets for the benefit of any other Person, or hold out its credit as being available to satisfy the obligations of any other Person.

  

	 	(xv)	It will not make or permit to remain outstanding any loans or advances to any other Person except for those investments permitted under the Loan Documents and will not buy or hold evidence of indebtedness issued by any
other Person (other than cash or investment-grade securities). 

  

	 	(xvi)	It will file its own tax returns separate from those of any other Person, except to the extent that Borrower is treated as a “disregarded entity” for tax purposes and is not required to file tax returns under
applicable law, and will pay any taxes required to be paid under applicable law. 

  

	 	(xvii)	It will hold itself out to the public as a legal entity separate and distinct from any other Person and conduct its business solely in its own name, will correct any known misunderstanding regarding its separate
identity and will not identify itself or any of its Affiliates as a division or department of any other Person. 

  

	 	(xviii)	It will maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations and will pay its debts and liabilities
from its own assets as the same become due. 

  

	 	(xix)	It will allocate fairly and reasonably shared expenses with Affiliates (including shared office space) and use separate stationery, invoices and checks bearing its own name. 

 

	 	(xx)	It will pay (or cause the Property Manager or any Facility Operator to pay on behalf of Borrower from Borrower’s funds) its own liabilities (including salaries of its own employees) from its own funds.

  

			
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	 	(xxi)	It will not acquire obligations or securities of its partners, members, shareholders, or Affiliates, as applicable. 

  

	 	(xxii)	Except as contemplated or permitted by the property management agreement with respect to the Property Manager or any operating lease or operating agreement with respect to any Facility Operator, it will not permit any
Affiliate or constituent party independent access to its bank accounts. 

  

	 	(xxiii)	It will maintain a sufficient number of employees (if any) in light of its contemplated business operations and pay the salaries of its own employees, if any, only from its own funds. 

 

	 	(xxiv)	If such entity is a single member limited liability company, such entity will satisfy each of the following conditions: 

  

	 	(A)	Be formed and organized under Delaware law. 

  

	 	(B)	Have either one springing member that is a corporation or two springing members who are natural persons. If there is more than one springing member, only one springing member will be the sole member of Borrower or SPE
Equity Owner (as applicable) at any one time, and the second springing member will become the sole member only upon the first springing member ceasing to be a member. 

 

	 	(C)	Otherwise comply with all Rating Agencies’ criteria for single member limited liability companies (including the delivery of Delaware single member limited liability company opinions acceptable in all respects to
Lender). 

  

	 	(D)	At all times Borrower or SPE Equity Owner (as applicable) will have one and only one member. 

  

	 	(xxv)	If such entity is a single member limited liability company that is board-managed, such entity will have a board of Managers separate from that of Guarantor and any other Person and will cause its board of Managers to
keep minutes of board meetings and actions and observe all other Delaware limited liability company required formalities. 

  

	 	(xxvi)	If an SPE Equity Owner is required pursuant to this Loan Agreement, if Borrower is (A) a limited liability company with more than one member, then Borrower has and will have at least one member that is an SPE
Equity Owner that has satisfied and will satisfy the requirements of Section 6.13(b) and such member is its managing member, or (B) a limited partnership, then all of its general partners are SPE Equity Owners that have satisfied and will
satisfy the requirements set forth in Section 6.13(b). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 50

	 	(xxvii)	Reserved. 

  

	 	(xxviii)	Reserved. 

  

	 	(b)	SPE Equity Owner Requirements. The SPE Equity Owner, if applicable, will at all times since its formation and thereafter comply in its own right (subject to the modifications set forth below), and will cause
Borrower to comply, with each of the requirements of a Single Purpose Entity. Upon the withdrawal or the disassociation of an SPE Equity Owner from Borrower, Borrower will immediately appoint a new SPE Equity Owner, whose organizational documents
are substantially similar to those of the withdrawn or disassociated SPE Equity Owner, and deliver a new nonconsolidation opinion to Lender in form and substance satisfactory to Lender with regard to nonconsolidation by a bankruptcy court of the
assets of each of Borrower and SPE Equity Owner with those of its Affiliates. 

  

	 	(i)	With respect to Section 6.13(a)(i), the SPE Equity Owner will not engage in any business or activity other than being the managing member or general partner, as the case may be, of Borrower and owning at least 0.5%
equity interest in Borrower. 

  

	 	(ii)	With respect to Section 6.13(a)(ii), the SPE Equity Owner has not and will not acquire or own any assets other than its equity interest in Borrower and personal property related thereto. 

 

	 	(iii)	With respect to Section 6.13(a)(viii), the SPE Equity Owner will not own any subsidiary or make any investment in any other Person, except for Borrower. 

 

	 	(iv)	With respect to Section 6.13(a)(x), the SPE Equity Owner has not and will not incur any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than (A) customary
unsecured payables incurred in the ordinary course of owning Borrower provided the same are not evidenced by a promissory note, do not exceed, in the aggregate, at any time a maximum amount of $10,000 and are paid within 60 days of the date
incurred, and (B) in its capacity as general partner of Borrower (if applicable). 

  

	 	(v)	With respect to Section 6.13(a)(xiv), the SPE Equity Owner will not assume or guaranty the debts or obligations of any other Person, hold itself out to be responsible for the debts of another Person, pledge its
assets to secure the obligations of any other Person or otherwise pledge its assets for the benefit of any other Person, or hold out its credit as being available to satisfy the obligations of any other Person, except for in its capacity as general
partner of Borrower (if applicable). 

  

	 	(c)	Effect of Transfer on Special Purpose Entity Requirements. Notwithstanding anything to the contrary in this Loan Agreement, no Transfer will be permitted under Article VII unless the provisions of this
Section 6.13 are satisfied at all times. 

  

			
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	6.14	Repairs and Capital Replacements. 

  

	 	(a)	Completion of Repairs. Borrower will commence any Repairs as soon as practicable after the date of this Loan Agreement and will diligently proceed with and complete such Repairs on or before the Completion Date.
All Repairs and Capital Replacements will be completed in a good and workmanlike manner, with suitable materials, and in accordance with good building practices and all applicable laws, ordinances, rules, regulations, building setback lines and
restrictions applicable to the Mortgaged Property. Borrower agrees to cause the replacement of any material or work that is defective, unworkmanlike or that does not comply with the requirements of this Loan Agreement, as determined by Lender.

  

	 	(b)	Purchases. Without the prior written consent of Lender, no materials, machinery, equipment, fixtures or any other part of the Repairs or Capital Replacements will be purchased or installed under conditional sale
contracts or lease agreements, or any other arrangement wherein title to such Repairs or Capital Replacements is retained or subjected to a purchase money security interest, or the right is reserved or accrues to anyone to remove or repossess any
such Repairs or Capital Replacements, or to consider them as personal property. 

  

	 	(c)	Lien Protection. Borrower will promptly pay or cause to be paid, when due, all costs, charges and expenses incurred in connection with the construction and completion of the Repairs or Capital Replacements, and
will keep the Mortgaged Property free and clear of any and all Liens other than the Lien of the Security Instrument and any other junior Lien to which Lender has consented. 

 

	 	(d)	Adverse Claims. Borrower will promptly advise Lender in writing of any litigation, Liens or claims affecting the Mortgaged Property and of all complaints and charges made by any Governmental Authority that may
delay or adversely affect the Repairs or Capital Replacements. 

  

	6.15	Residential Leases Affecting the Mortgaged Property. 

  

	 	(a)	Borrower will, promptly upon Lender’s request, deliver to Lender an executed copy of each residential Lease then in effect. 

  

	 	(b)	All Leases for residential dwelling units will satisfy the following conditions: 

  

	 	(i)	They will be on forms that are customary for similar seniors housing facilities in the Property Jurisdiction. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 52

	 	(ii)	They will be for initial terms of at least 6 months and not more than 2 years (unless otherwise approved in writing by Lender). 

  

	 	(iii)	They will not include any Corporate Leases (unless otherwise approved in writing by Lender). 

  

	 	(iv)	They will not include options to purchase. 

  

	 	(c)	If Borrower is a cooperative housing corporation or association, notwithstanding anything to the contrary contained in this Loan Agreement, so long as Borrower remains a cooperative housing corporation or association
and is not in breach of any covenant of this Loan Agreement, Lender consents to each of the following: 

  

	 	(i)	The execution of Leases for terms in excess of 2 years to a tenant shareholder of Borrower, so long as such Leases, including proprietary Leases, are and will remain subordinate to the Lien of the Security Instrument.

  

	 	(ii)	The surrender or termination of such Leases where the surrendered or terminated Lease is immediately replaced or where Borrower makes its best efforts to secure such immediate replacement by a newly-executed Lease of
the same apartment to a tenant shareholder of Borrower. However, no consent is given by Lender to any execution, surrender, termination or assignment of a Lease under terms that would waive or reduce the obligation of the resulting tenant
shareholder under such Lease to pay cooperative assessments in full when due or the obligation of the former tenant shareholder to pay any unpaid portion of such assessments. 

 

	6.16	Litigation; Government Proceedings. Borrower will give prompt Notice to Lender of any litigation or governmental proceedings pending or, to the best of Borrower’s knowledge, threatened in writing against
Borrower, any Borrower Principal, the Facility Operator, or Property Manager which might have a Material Adverse Effect. As and when requested by Lender, Borrower will provide Lender with written updates on the status of all litigation proceedings
affecting Borrower, any Borrower Principal, the Facility Operator or Property Manager. 

  

	6.17	Further Assurances and Estoppel Certificates; Lender’s Expenses. Within 10 days after a request from Lender, in Lender’s Discretion, Borrower will take each of the following actions: 

 

	 	(a)	 Deliver to Lender a written statement, signed and acknowledged by Borrower, certifying to Lender or any Person designated by Lender, as of the date of
such 

  

			
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statement: (i) that the Loan Documents are unmodified and in full force and effect (or, if there have been modifications, that the Loan Documents are in full force and effect as modified and
setting forth such modifications), (ii) the unpaid principal balance of the Note, (iii) the date to which interest under the Note has been paid, (iv) that Borrower is not in default in paying the Indebtedness or in performing or
observing any of the covenants or agreements contained in this Loan Agreement or any of the other Loan Documents (or, if Borrower is in default, describing such default in reasonable detail), (v) whether there are any then-existing setoffs or
defenses known to Borrower against the enforcement of any right or remedy of Lender under the Loan Documents, and (vi) any additional facts requested by Lender. 

 

	 	(b)	Execute, acknowledge and/or deliver, at its sole cost and expense, all further acts, deeds, conveyances, assignments, estoppel certificates, financing statements or amendments, transfers and assurances as Lender may
require from time to time in order to better assure, grant and convey to Lender the rights intended to be granted, now or in the future, to Lender under this Loan Agreement and the Loan Documents or in connection with Lender’s consent rights
under Article VII. 

 Borrower acknowledges and agrees that, in connection with each request by Borrower under this Loan
Agreement or any Loan Document, Borrower will pay all reasonable Attorneys’ Fees and Costs and expenses incurred by Lender and Loan Servicer, including any fees charged by the Rating Agencies, if applicable, regardless of whether the matter is
approved, denied or withdrawn. Any amounts payable by Borrower under this Loan Agreement will be deemed a part of the Indebtedness, will be secured by the Security Instrument and will bear interest at the Default Rate if not fully paid within 10
days of written demand for payment. 
  

	6.18	Cap Collateral. Reserved. 

  

	6.19	Ground Lease. Reserved. 

  

	6.20	ERISA Requirements. 

  

	 	(a)	Borrower will not engage in any transaction which would cause an obligation, or action taken or to be taken under this Loan Agreement (or the exercise by Lender of any of its rights under the Note, this Loan Agreement
or any of the other Loan Documents) to be a non-exempt prohibited transaction under ERISA or Section 4975 of the Tax Code. 

  

	 	(b)	Borrower will deliver to Lender such certifications or other evidence from time to time throughout the term of this Loan Agreement, as requested by Lender in Lender’s Discretion, confirming each of the following:

  

	 	(i)	Borrower is not an “employee benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, a “plan” to which Section 4975 of the Tax Code applies, or an entity
whose underlying assets constitute “plan assets” of one or more of such plans. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 54

	 	(ii)	Borrower is not a “governmental plan” within the meaning of Section 3(32) of ERISA. 

  

	 	(iii)	Borrower is not subject to state statutes regulating investments or fiduciary obligations with respect to governmental plans. 

  

	 	(iv)	One or more of the following circumstances is true: 

  

	 	(A)	Equity interests in Borrower are publicly offered securities within the meaning of 29 C.F.R. Section 2510.3-101(b)(2), as amended from time to time or any successor provision. 

 

	 	(B)	Less than 25% of each outstanding class of equity interests in Borrower are held by “benefit plan investors” within the meaning of Section 3(42) of ERISA, as amended from time to time or any successor
provision. 

  

	 	(C)	Borrower qualifies as either an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R. Section 2510.3-101(c) or (e), as either may be amended from time to time
or any successor provisions, or is an investment company registered under the Investment Company Act of 1940. 

  

	6.21	Operation of the Facility. 

  

	 	(a)	Without limiting the generality of Section 6.03, Borrower will, or will cause any Facility Operator to, operate the Facility for its Intended Use and will, or will cause any Facility Operator to, provide, to
Lender’s reasonable satisfaction, all of the facilities, services, staff, equipment and supplies required or normally associated with a typical high quality property devoted to the Intended Use. 

 

	 	(b)	Borrower will, or will cause any Facility Operator to, operate the Facility in a manner such that all applicable Licenses now or hereafter in effect will remain in full force and effect. Borrower will not, and will not
allow any Facility Operator to: (i) transfer any License (or any rights thereunder) to any location other than the Facility, (ii) pledge any License (or any rights thereunder) as collateral security for any other loan or indebtedness,
(iii) terminate any License or permit any License not to be renewed or reissued as applicable, (iv) rescind, withdraw, revoke, amend, supplement, modify or otherwise alter the nature, tenor or scope of any License, or (v) permit any
License to become the subject of any Downgrade, revocation, suspension, restriction, condition or probation (including any restriction on new admissions or residents). 

 

	 	(c)	Borrower will, or as applicable, Borrower will cause any Facility Operator to, maintain and implement all compliance and procedures policies as may be required by any applicable Healthcare Laws or Governmental
Authority. Upon request by Lender, Borrower will provide Lender with copies of Borrower’s, and if applicable, each Facility Operator’s, compliance manuals which evidence such compliance. 

  

			
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	6.22	Facility Reporting. 

  

	 	(a)	Borrower will, or will cause any Facility Operator to, furnish to Lender, within 10 days after receipt by Borrower or any Facility Operator, any and all written notices from any Governmental Authority that: (i) any
License is being Downgraded, revoked, terminated, suspended, restricted or conditioned or may not be renewed or reissued or that action is pending or being considered to Downgrade, revoke, terminate, suspend, restrict or condition (or not renew or
reissue) any such License, (ii) any violation, fine, finding, investigation or corrective action concerning any License is pending or being considered, rendered or adopted, or (iii) any Healthcare Law or any health or safety code or
building code violation or other deficiency at the Mortgaged Property has been identified, but in each case only if the subject matter of such written notice (A) could materially impact the operation or value of the Facility, or
(B) requires additional formal or informal action by Borrower or Facility Operator that is more than development or implementation of a routine plan of correction, including participation in hearings concerning continued licensing or Medicare
or Medicaid participation, entering into consent orders affecting licensing affecting the Facility, or engaging in oversight management. 

  

	 	(b)	Borrower will, or will cause any Facility Operator to, furnish to Lender, within 10 days after receipt by Borrower or any Facility Operator, a copy of any survey, report or statement of deficiencies by any Governmental
Authority, but only if the subject matter of such survey, report or statement of deficiencies (i) could materially impact the operation or value of the Facility, or (ii) requires additional formal or informal action by Borrower or Facility
Operator that is more than development or implementation of a routine plan of correction, including participation in hearings concerning continued licensing or Medicare or Medicaid participation, entering into consent orders affecting licensing
affecting the Facility, or engaging in oversight management. Within the time period specified by the Governmental Authority for furnishing a plan of correction, Borrower, or if applicable, a Facility Operator, will do so and will furnish or will
cause to be furnished to Lender a copy of the plan of correction concurrently therewith. Borrower will correct or will cause to be corrected in a timely manner (and in all events by the date required by the Governmental Authority) any deficiency if
the failure to do so could cause any License to be Downgraded, revoked, suspended, restricted, conditioned or not renewed or reissued. 

  

			
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	 	(c)	Upon Lender’s request and subject to Privacy Laws, Borrower will, or will cause the Facility Operator to, furnish to Lender true and correct rent rolls and copies of all Leases. 

 

	 	(d)	Borrower will provide Lender with a copy of any License issued or renewed in the future by a Governmental Authority within 30 days after its issuance or renewal. To the extent that any such License is assignable,
Borrower will assign it to Lender as additional security for the Indebtedness, using a form of assignment acceptable to Lender in its discretion. If any License is issued to a Facility Operator, to the extent such License is assignable, Borrower
will cause such operator or management agent to assign the License to Lender as additional security for the Indebtedness, using a form of assignment acceptable to Lender in its discretion. 

 

	 	(e)	Subject to Privacy Laws, Borrower will furnish, and will cause any Facility Operator to furnish, to Lender at Borrower’s expense all evidence, which Lender may from time to time reasonably request as to the
continuing accuracy and validity of all representations and warranties made by Borrower in the Loan Documents and the continuing compliance with and satisfaction of all covenants and conditions contained in the Loan Documents. 

 

	6.23	Covenants Regarding Material Contracts. 

  

	 	(a)	Borrower will not, and will not permit any Facility Operator to, enter into any Material Contract, unless that Material Contract provides that it is terminable upon not more than 30 days notice by Borrower, or if
Borrower is not a party to the Material Contract, the Facility Operator, and their respective successors and assigns, without the necessity of establishing cause and without payment of a penalty or termination fee or extra charge. 

 

	 	(b)	Borrower will (or if Borrower is not a party thereto, will cause a Facility Operator to) fully perform all of its obligations under each Contract, and Borrower will not (and Borrower will not permit a Facility Operator
to) enter into, terminate or amend, modify, assign or otherwise encumber its interest in any Material Contract without the prior written approval of Lender. If Borrower or a Facility Operator enters into any Material Contract in the future (with
Lender’s consent thereto), Borrower will (or will cause the operator to), simultaneously with entering into the Material Contract, if requested by Lender (i) assign its rights under and interest in the Material Contract to Lender as
additional security for the Indebtedness, and (ii) obtain and provide to Lender a consent to that assignment by the other party(ies) to the Material Contract. Both the assignment and the consent must be in a form acceptable to Lender in its
discretion. 

  

	6.24	Pledge of Receivables. Borrower will not, and will not allow any Facility Operator to, pledge any receivables arising from the operation of the Facility (or any Leases or Contracts under which such receivables
arise) as collateral security for any other loan or indebtedness. 

  

			
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	6.25	Property Manager and Operator of the Facility. Borrower will not surrender, terminate, cancel, modify, renew or extend its property management agreement or any operating lease; permit the change of the
Property Manager or any Facility Operator; enter into any other agreement relating to the management or operation of the Facility with Property Manager, the Facility Operator, or any other Person; or consent to the assignment by the Property Manager
or Facility Operator of its interest under such property management agreement, operating lease or similar agreement, as applicable, in each case without the prior written approval of Lender, and in each such instance the approval by Lender of the
property management agreement and/or operating lease (or similar) agreement, as applicable. If at any time Lender consents to the appointment of a new Property Manager or Facility Operator, such new Property Manager or Facility Operator and Borrower
(or if Borrower is not a party thereto, a Facility Operator) will, as a condition of Lender’s consent, execute an Assignment of Management Agreement or assignment of operating agreement, as the case may be, in a form acceptable to Lender in its
discretion. If any such replacement Property Manager or Facility Operator is an Affiliate of Borrower, and if a nonconsolidation opinion was delivered at the origination of the Loan, Borrower will deliver to Lender an updated nonconsolidation
opinion in form and substance satisfactory to Lender with regard to nonconsolidation. Without limiting the foregoing, Borrower will not, and will not permit any Facility Operator to, enter into any New Non-Residential Lease, enter into any Modified
Non-Residential Lease or terminate any Non-Residential Lease, or enter into, terminate, extend or amend any Contract to lease, manage or operate the Facility without in each instance Lender providing its prior written consent thereto, which may be
conditioned upon Lender receiving an assignment thereof in a form acceptable to Lender. 

  

	6.26	Residential Leases and Agreements. 

  

	 	(a)	The form of residential Lease and/or residential care agreement or similar resident agreement approved by Lender prior to the date of this Loan Agreement with respect to the Facility will not be revised in any material
respect (except as may be required by applicable Healthcare Laws) without Lender’s prior written consent thereto. All Leases and agreements with residents at the Facility will be on forms approved by Lender. 

 

	 	(b)	Borrower or any Facility Operator will maintain all deposits by all residents of the Facility in accordance with all applicable laws and regulations pertaining thereto, and in accordance with the terms of each such
resident’s Lease or resident care agreement, and otherwise in accordance with the other provisions of this Loan Agreement and the other Loan Documents. 

  

	6.27	Performance Under Leases. Borrower or a Facility Operator, as applicable, will timely perform all of the obligations of such party under all Leases of the Facility or any Mortgaged Property. 

  

			
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	6.28	Governmental Payor Programs. 

  

	 	(a)	No more than 5% of the total number of beds at the Facility may be allocated to residents who participate in a Governmental Payor Program. 

 

	 	(b)	If Borrower violates the covenant in Section 6.28(a), then Borrower must immediately fund a transition reserve with cash in an amount equal to the aggregate of 6 months of principal and interest payments due under
the terms of the Note for the next 6 months. If the Note provides for interest to accrue at a floating or variable interest rate (other than during the “Extension Period,” as defined in the Note, if applicable), then Lender will estimate
the amount of the interest due during such 6-month period. Borrower must also enter into a transition reserve agreement acceptable to Lender in form and content. 

  

	 	(c)	Borrower will furnish to Lender, within 10 days after receipt by Borrower, any Facility Operator or any Property Manager, any and all notices from any Governmental Authority which state that the Governmental Payor
Program certification of the Facility is being downgraded to a substandard category, revoked, or suspended, or that action is pending or being considered to downgrade any such certification. 

 

	 	(d)	Borrower will furnish to Lender, within 10 days after receipt by Borrower, any Facility Operator or any Property Manager, a copy of any survey, report or statement of deficiencies by any Governmental Authority
administering Governmental Payor Program funds or programs. Within the time period specified by any such Governmental Authority for furnishing a plan of correction, Borrower will furnish to Lender a copy of the plan of correction. By the date
required for cure by the Governmental Authority, Borrower will correct or will cause to be corrected any deficiency the curing of which is a condition of continued eligibility for Governmental Payor Program payment or reimbursement, including full
participation in the Governmental Payor Program for existing residents and for new residents to be admitted with Governmental Payor Program coverage. 

  

	 	(e)	Other than in the normal course of business, Borrower will not, and will not permit any Facility Operator or any Property Manager to, change the terms of any of the Governmental Payor Program or its normal billing
payment and reimbursement policies and procedures with respect to such Governmental Payor Program (including the amount and timing of finance charges, fees and write-offs). 

 

	 	(f)	 Within 10 days of the required filing of cost reports of the Facility with the Governmental Payor Program agency or the date of actual filing of such
cost report of the Facility with such agency, whichever is earlier, Borrower will provide Lender with a complete and accurate copy of the annual Governmental 

  

			
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Payor Program cost report of the Facility, which will be prepared by an independent certified public accountant or by an experienced cost report preparer acceptable to Lender, and will promptly
furnish Lender any amendments filed with respect to such reports and all responses, audit reports or inquiries with respect to such reports. 

  

	 	(g)	Borrower will permit and will cause any Property Manager or any Facility Operator to permit representatives appointed by Lender, including independent accountants, agents, attorneys, appraisers and any other persons, to
visit and inspect any of the Facility during its normal business hours and at any other reasonable times, and to take photographs of the Facility, and to write down and record any information such representatives obtain, and will permit Lender or
its representatives to investigate and verify the accuracy of the information furnished to Lender under or in connection with this Loan Agreement or any of the other Loan Documents and to discuss all such matters with its officers, employees and
representatives. 

  

	 	(h)	Borrower will furnish and will cause any management agent for the Facility or any Facility Operator to furnish to Lender, at Borrower’s expense, all evidence which Lender may from time to time reasonably request as
to the accuracy and validity of or compliance with all representations and warranties made by Borrower in the Loan Documents and satisfaction of all conditions contained in the Loan Documents. 

 

	 	(i)	Any inspection or audit of the Facility or the books and records of Borrower, any Property Manager or any Facility Operator, or the procuring of documents and financial and other information, by or on behalf of Lender,
will be for Lender’s protection only, and will not constitute any assumption of responsibility or liability by Lender to Borrower, any Property Manager or any Facility Operator or anyone else with regard to the condition, construction,
maintenance or operation of the Facility. Lender’s approval of any certification given to Lender will not relieve Borrower, Property Manager, or a Facility Operator of any of their respective obligations. 

 

	 	(j)	Within 120 days after the end of each fiscal quarter of Borrower, Borrower will deliver or cause Property Manager or the Facility Operator to deliver to Lender information in sufficient detail, as determined by Lender,
to show by patient mix (i.e., private and Governmental Payor Program, if applicable) the average monthly census of the Facility, occupancy rates and the amount of income attributed to reimbursements or payments from a Governmental Payor Program.

  

	 	(k)	After an Event of Default, Lender is authorized to give notice to all third party payors at Lender’s option, instructing them to pay all third party payments, including Medicare, Medicaid or TRICARE, which would be
otherwise paid to Borrower or to a Facility Operator to Lender, to the extent permitted by law. 

  

	 	(l)	Borrower will not and will not permit any breach or violation by any Person of any Healthcare Laws pertaining to the Facility or the operation of the Facility, including any Healthcare Laws pertaining to billing for
goods or services by Borrower or any Facility Operator. Borrower will not and will not permit any circumstance to occur which would (i) cause Borrower, a Facility Operator or the Facility to be disqualified for participation in any Governmental
Payor Program or (ii) cause the non-renewal or termination of Borrower, a Facility Operator or the Facility’s participation in any such program, as applicable. 

  

			
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	6.29	Additional Covenants Regarding Operator. Reserved. 

  

	6.30	through 6.46 are reserved. 

  

	ARTICLE VII	TRANSFERS OF THE MORTGAGED PROPERTY OR INTERESTS IN BORROWER. 

 Upon the occurrence of a Transfer
prohibited by or requiring Lender’s approval (if applicable) under this Article VII, Lender may, in Lender’s Discretion, by Notice to Borrower and the proposed transferee(s), modify or render void, any or all of the negotiated
modifications to the Loan Documents (and/or deferral of deposits to Reserve Funds) as a condition to Lender’s consent to the proposed Transfer. 
  

	7.01	Permitted Transfers. The occurrence of any of the following Transfers will not constitute an Event of Default under this Loan Agreement, notwithstanding any provision of Section 7.02 to the contrary:

  

	 	(a)	A Transfer to which Lender has consented. 

  

	 	(b)	A Transfer that is not a prohibited Transfer pursuant to Section 7.02. 

  

	 	(c)	A Transfer that is conditionally permitted pursuant to Section 7.03 upon the satisfaction of all applicable conditions. 

  

	 	(d)	The grant of a leasehold interest in an individual dwelling unit for a term of 2 years or less (or longer if approved by Lender in writing) not containing an option to purchase. 

 

	 	(e)	Entering into any New Non-Residential Lease, or modifying or terminating any Non-Residential Lease, in each case in compliance with Section 6.04. 

 

	 	(f)	A Condemnation with respect to which the Borrower satisfies the requirements of Section 6.11. 

  

	 	(g)	A Transfer of obsolete or worn out Personalty or Fixtures that are contemporaneously replaced by items of equal or better function and quality, which are free of Liens, encumbrances and security interests other than
those created by the Loan Documents or consented to by Lender. 

  

			
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	 	(h)	The creation of a mechanic’s, materialmen’s, or judgment Lien against the Mortgaged Property, which is released of record, bonded, or otherwise remedied to Lender’s satisfaction within 60 days of the date
of creation; provided, however, if Borrower is diligently prosecuting such release or other remedy and advises Lender that such release or remedy cannot be consummated within such 60-day period, Borrower will have an additional period of time (not
exceeding 120 days from the date of creation or such earlier time as may be required by applicable law in which the lienor must act to enforce the Lien) within which to obtain such release of record or consummate such other remedy.

  

	 	(i)	If Borrower is a housing cooperative corporation or association, the Transfer of the shares in the housing cooperative or the assignment of the occupancy agreements or Leases relating thereto to tenant shareholders of
the housing cooperative or association. 

  

	 	(j)	A Supplemental Instrument that complies with Section 11.11 (if applicable) or Defeasance that complies with Section 11.12 (if applicable). 

 

	 	(k)	Reserved. 

  

	7.02	Prohibited Transfers. The occurrence of any of the following Transfers will constitute an Event of Default under this Loan Agreement: 

 

	 	(a)	A Transfer of all or any part of the Mortgaged Property or any interest in the Mortgaged Property, including the grant, creation or existence of any Lien on the Mortgaged Property, whether voluntary, involuntary or by
operation of law, and whether or not such Lien has priority over the Lien of the Security Instrument, other than the Lien of the Security Instrument or, if this Loan Agreement is entered into in connection with a Supplemental Loan, the Lien of the
Senior Instrument, or any other Lien to which Lender has consented. 

  

	 	(b)	A Transfer or series of Transfers of any legal or equitable interest of any Guarantor which owns a direct or indirect interest in Borrower that result(s) in such Guarantor no longer owning any direct or indirect
interest in Borrower. 

  

	 	(c)	A Transfer or series of Transfers of any legal or equitable interest since the Closing Date that result(s) in a change of more than 50% of the ownership interests (or beneficial interests, if the applicable entity is a
trust) in Borrower or any Designated Entity for Transfers. 

  

	 	(d)	A Transfer of any general partnership interest in a partnership, or any manager interest (whether a member manager or nonmember manager) in a limited liability company, or a change in the trustee of a trust other than
as permitted in Section 7.04, if such partnership, limited liability company, or trust, as applicable, is Borrower or a Designated Entity for Transfers. 

  

			
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	 	(e)	If Borrower or any Designated Entity for Transfers is a corporation whose outstanding voting stock is held by 100 or more shareholders, one or more Transfers by a single transferor within a 12-month period affecting an
aggregate of 10% or more of that stock. 

  

	 	(f)	The grant, creation or existence of any Lien, whether voluntary, involuntary or by operation of law, and whether or not such Lien has priority over the Lien of the Security Instrument, on any ownership interest in
Borrower or any Designated Entity for Transfers, if the foreclosure of such Lien would result in a Transfer prohibited under Sections 7.02(b), (c), (d), or (e). 

  

	 	(g)	If Borrower is a trust (i) the termination or revocation of the trust, or (ii) the removal, appointment or substitution of a trustee of the trust. 

 

	 	(h)	Reserved. 

  

	 	(i)	Reserved. 

  

	 	(j)	Reserved. 

  

	7.03	Conditionally Permitted Transfers. The occurrence of any of the following Transfers will not constitute a prohibited Transfer under Section 7.02, provided that Borrower has complied with all applicable
specified conditions in this Section. 

  

	 	(a)	Transfer by Devise, Descent or Operation of Law. Upon the death of a natural person, a Transfer which occurs by devise, descent, or by operation of law to one or more Immediate Family Members of such natural
person or to a trust or family conservatorship established for the benefit of such Immediate Family Members (each a “Beneficiary”), provided that each of the following conditions is satisfied: 

 

	 	(i)	The Property Manager or Facility Operator, as applicable, continues to be responsible for the management of the Mortgaged Property, and such Transfer will not result in a change in the day-to-day operations of the
Mortgaged Property. 

  

	 	(ii)	Lender receives confirmation acceptable to Lender, in Lender’s Discretion, that Borrower continues to satisfy the requirements of Section 6.13. 

  

			
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	 	(iii)	Each Guarantor executes such documents and agreements as Lender requires in Lender’s Discretion to evidence and effect the ratification of each Guaranty, or in the event of the death of any Guarantor, Borrower
causes one of the following to occur: 

  

	 	(A)	One or more Persons acceptable to Lender, in Lender’s Discretion, execute(s) and deliver(s) to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed on the
Closing Date, without any cost or expense to Lender. 

  

	 	(B)	The estate of the deceased Guarantor immediately ratifies the Guaranty in writing, and within 6 months after the date of the death of the deceased Guarantor one or more Persons, acceptable to Lender in Lender’s
Discretion, execute(s) and deliver(s) to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed on the Closing Date, without any cost or expense to Lender. 

 

	 	(iv)	Borrower gives Lender Notice of such Transfer together with copies of all documents effecting such Transfer not more than 30 calendar days after the date of such Transfer, and contemporaneously with the Notice, takes
each of the following additional actions: 

  

	 	(A)	Borrower reaffirms the representations and warranties under Article V. 

  

	 	(B)	Borrower satisfies Lender, in Lender’s Discretion, that the Beneficiary’s organization, credit and experience in the management of similar properties are appropriate to the overall structure and documentation
of the existing financing. 

  

	 	(v)	Borrower or Beneficiary causes to be delivered to Lender such legal opinions as Lender deems necessary, in Lender’s Discretion, including a nonconsolidation opinion (if a nonconsolidation opinion was delivered on
the Closing Date and if required by Lender), an opinion that the ratification of the Loan Documents and Guaranty (if applicable) have been duly authorized, executed, and delivered and that the ratification documents and Guaranty (if applicable) are
enforceable as the obligations of Borrower, Beneficiary or Guarantor, as applicable. 

  

	 	(vi)	Borrower (A) pays the Transfer Processing Fee to Lender, and (B) pays or reimburses Lender, upon demand, for all costs and expenses including all Attorneys’ Fees and Costs, incurred by Lender in
connection with such Transfer; provided, however, that Lender will not be entitled to collect a Transfer Fee. 

  

	 	(b)	Easement, Restrictive Covenant or Other Encumbrance. The grant of an easement, restrictive covenant or other encumbrance, provided that each of the following conditions is satisfied: 

 

	 	(i)	Borrower provides Lender with at least 30 days prior Notice of the proposed grant. 

  

			
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	 	(ii)	Prior to the grant, Lender determines, in Lender’s Discretion, that the easement, restrictive covenant or other encumbrance will not materially affect the operation or value of the Mortgaged Property or
Lender’s interest in the Mortgaged Property. 

  

	 	(iii)	Borrower pays or reimburses Lender, upon demand, for all costs and expenses, including all Attorneys’ Fees and Costs, incurred by Lender in connection with reviewing Borrower’s request for Lender’s review
of such grant of easement, restrictive covenant or other encumbrance; provided, however, that Lender will not be entitled to collect a Transfer Fee. 

  

	 	(iv)	If the Note is held by a REMIC trust, Lender may require an opinion of counsel which meets each of the following requirements: 

  

	 	(A)	The counsel providing the opinion is acceptable to Lender. 

  

	 	(B)	The opinion is addressed to Lender. 

  

	 	(C)	The opinion is paid for by Borrower. 

  

	 	(D)	The opinion is in form and substance satisfactory to Lender in its sole and absolute discretion. 

  

	 	(E)	The opinion confirms each of the following: 

  

	 	(1)	The grant of such easement has been effected in accordance with the requirements of Treasury Regulation Section 1.860G-2(a)(8) (as such regulation may be modified, amended or replaced from time to time).

  

	 	(2)	The qualification and status of the REMIC trust as a REMIC will not be adversely affected or impaired as a result of such grant. 

  

	 	(3)	The REMIC trust will not incur a tax under Section 860G(d) of the Tax Code as a result of such grant. 

  

			
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	 	(c)	Publicly-Held Fund or Publicly-Held Real Estate Investment Trust. If a Designated Entity for Transfers is a publicly-held fund or a publicly-held real estate investment trust, either of the following:

  

	 	(i)	The public issuance of common stock, convertible debt, equity or other similar securities (“Public Fund/REIT Securities”) and the subsequent Transfer of such Public Fund/REIT Securities.

  

	 	(ii)	The acquisition by a single Public Fund/REIT Securities holder of an ownership percentage of 10% or more in the Designated Entity for Transfers, if Borrower provides notice of that acquisition to Lender within 30 days
following the acquisition. 

  

	 	(d)	Transaction Specific Transfers. 

  

	 	(i)	through (v) are reserved. 

  

	 	(vi)	Limited Partner or Non-Managing Member Transfer. A Transfer that results in the cumulative Transfer of more than 50% and up to 100% of the non-managing membership interests in or the limited partnership interests
in Borrower or any Designated Entity for Transfer (“Investor Interests”) to third party transferees (“Investor Interest Transfer”), provided that each of the following conditions is satisfied: 

 

	 	(A)	Borrower provides Lender with at least 30 days prior Notice of the proposed Investor Interest Transfer. 

  

	 	(B)	At the time of the proposed Investor Interest Transfer, no Event of Default has occurred and is continuing and no event or condition has occurred and is continuing that, with the giving of Notice or the passage of time,
or both, would become an Event of Default. 

  

	 	(C)	Following the Investor Interest Transfer, Control and management of the day-to-day operations of Borrower continue to be held by the Person exercising such Control and management immediately prior to the Investor
Interest Transfer and there is no change in the Guarantor, if applicable. 

  

	 	(D)	The Investor Interest Transfer does not result in a Transfer of the type described in Section 7.02(b). 

  

	 	(E)	At any time that one Person acquires 25% or more of the aggregate of direct or indirect Investor Interests as a result of the Investor Interest Transfer, Borrower must meet the following additional requirements:

  

	 	(1)	Borrower pays to Lender the Transfer Processing Fee at the time the Borrower provides Lender with the Notice set forth in Section 7.03(d)(vi)(A). 

  

			
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	 	(2)	Borrower pays or reimburses Lender, upon demand, for all costs and expenses, including all Attorneys’ Fees and Costs, incurred by Lender in connection with the Investor Interest Transfer. 

 

	 	(3)	Lender receives confirmation acceptable to Lender that (X) the requirements of Section 6.13 continue to be satisfied, and (Y) the term of existence of the holder of 25% or more of the Investor Interests
after the Investor Interest Transfer (exclusive of any unexercised extension options or rights) does not expire prior to the Maturity Date. 

  

	 	(1)	(4) Lender receives organizational charts reflecting the structure of Borrower prior to and after the Investor Interest Transfer and copies of the then-current organizational documents of Borrower and the entity in
which Investor Interests were transferred, if different from Borrower, including any amendments. 

  

	 	(5)	Each transferee with an interest of 25% or more delivers to Lender a certification that each of the following is true: 

  

	 	(X)	He/she/it has not been convicted of fraud or a crime involving moral turpitude (or if an entity, then no principal of such entity has been convicted of fraud or a crime involving moral turpitude). 

 

	 	(Y)	He/she/it has not been involved in a bankruptcy or reorganization within the ten years preceding the date of the Investor Interest Transfer. 

 

	 	(6)	Borrower delivers to Lender searches confirming that no transferee with an interest of 25% or more is on the list of Specially Designated Nationals or other blocked persons published by the U.S. Office of Foreign Assets
Control, or on the list of persons or entities prohibited from doing business with the Department of Housing and Urban Development. 

  

	 	(7)	If a nonconsolidation opinion was delivered on the Closing Date and if, after giving effect to the Investor Interest Transfer and all prior Transfers, 50% or more in the aggregate of direct or indirect interests in
Borrower are owned by any Person and its Affiliates that owned less than a 50% direct or indirect interest in Borrower as of the Closing Date, Borrower delivers to Lender an opinion of counsel for Borrower, in form and substance satisfactory to
Lender, with regard to nonconsolidation. 

  

	 	(vii)	through (ix) are reserved. 

  

	 	(e)	through (i) are reserved. 

  

			
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	7.04	Preapproved Intrafamily Transfers. Not applicable. 

  

	7.05	Lender’s Consent to Prohibited Transfers. 

  

	 	(a)	Conditions for Lender’s Consent. With respect to a Transfer that would otherwise constitute an Event of Default under this Article VII, Lender will consent, without any adjustment to the rate at which the
Indebtedness bears interest or to any other economic terms of the Indebtedness set forth in the Note, provided that, prior to such Transfer, each of the following requirements is satisfied: 

 

	 	(i)	Borrower has submitted to Lender all information required by Lender to make the determination required by this Section along with the Transfer Processing Fee. 

 

	 	(ii)	No Event of Default has occurred and is continuing and no event or condition has occurred and is continuing that, with the giving of Notice or the passage of time, or both, would become an Event of Default unless such
Transfer would cure the Event of Default. 

  

	 	(iii)	Lender in Lender’s Discretion has determined that the transferee meets Lender’s eligibility, credit, management and other standards (including any standards with respect to previous relationships between
Lender and the transferee). 

  

	 	(iv)	Lender in Lender’s Discretion has determined that the transferee’s organization, credit and experience in the ownership and management of similar senior housing facilities is adequate and appropriate to the
overall structure and documentation of the Loan. 

  

	 	(v)	Lender in Lender’s Discretion has determined that the Mortgaged Property will be managed by a Property Manager meeting the requirements of Section 6.09(d), and, if applicable, an Operator whose organization,
credit and experience in the operation of similar senior housing facilities is adequate and appropriate to the overall structure and documentation of the Loan. Any new or replacement Operator approved by Lender must either (A) assume the Loan
Documents executed by the prior Operator, if applicable, or (B) execute Lender’s then-standard documents governing operators of senior housing facilities and transferee will execute any modifications to the Loan Documents required by
Lender to document Operator’s role in the operation of the Facility and appropriately secure the Loan. 

  

			
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	 	(vi)	Lender in Lender’s Discretion has determined that the Mortgaged Property, at the time of the proposed Transfer, meets all of Lender’s standards as to its physical condition, occupancy, net operating income and
the accumulation of reserves. 

  

	 	(vii)	Lender in Lender’s Discretion has determined that the transferee and any SPE Equity Owner of such transferee meet the requirements of Section 6.13. 

 

	 	(viii)	If any Supplemental Instrument is outstanding, Borrower has obtained the consent of each Supplemental Lender, if different from Lender. 

 

	 	(ix)	In the case of a Transfer of all or any part of the Mortgaged Property, each of the following conditions is satisfied: 

  

	 	(A)	The transferee executes Lender’s then-standard assumption agreement that, among other things, requires the transferee to perform all obligations of Borrower set forth in the Note, the Security Instrument, this Loan
Agreement and any other Loan Document, and may require that the transferee comply with any provisions of this Loan Agreement or any other Loan Document which previously may have been waived or modified by Lender. 

 

	 	(B)	If Lender requires, the transferee causes one or more Persons acceptable to Lender, in Lender’s Discretion, to execute and deliver to Lender a Guaranty in a form acceptable to Lender. 

 

	 	(C)	The transferee executes such additional documentation (including filing financing statements, as applicable) as Lender may require. 

  

	 	(x)	In the case of a Transfer of any interest in Borrower or a Designated Entity for Transfers, if a Guarantor requests that Lender release the Guarantor from its obligations under a Guaranty executed and delivered in
connection with the Note, this Loan Agreement or any of the other Loan Documents, then Borrower causes one or more Persons acceptable to Lender, in Lender’s Discretion, to execute and deliver to Lender a Guaranty in a form acceptable to Lender.

  

	 	(xi)	Lender has received such legal opinions as Lender deems necessary, including a nonconsolidation opinion (if a nonconsolidation opinion was delivered on the Closing Date and if required by Lender), an opinion that the
assignment and assumption of the Loan Documents has been duly authorized, executed, and delivered and that the assignment documents and the Loan Documents are enforceable as the obligations of Borrower, transferee and Guarantor, as applicable.

  

			
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	 	(xii)	Lender collects all costs, including the cost of all title searches, title insurance and recording costs, and all Attorneys’ Fees and Costs incurred in reviewing the Transfer request and any fees charged by the
Rating Agencies, if applicable. 

  

	 	(xiii)	At the time of the Transfer, Borrower pays the Transfer Fee to Lender. 

  

	 	(xiv)	The Transfer will not occur during any Extension Period, if applicable. 

  

	 	(b)	Continuing Liability of Borrower. If Borrower requests a release of its liability under the Loan Documents in connection with a Transfer of all of Borrower’s interest in the Mortgaged Property, and Lender
approves the Transfer pursuant to Section 7.05(a), then one of the following will apply: 

  

	 	(i)	If Borrower delivers to Lender a current Site Assessment which (A) is dated within 90 days prior to the date of the proposed Transfer, and (B) evidences no presence of Hazardous Materials on the Mortgaged
Property and no other Prohibited Activities or Conditions with respect to the Mortgaged Property (“Clean Site Assessment”), then Lender will release Borrower from all of Borrower’s obligations under the Loan Documents except
for any liability under Section 6.12 or Section 10.02(b) with respect to any loss, liability, damage, claim, cost or expense which directly or indirectly arises from or relates to any Prohibited Activities or Conditions existing prior to
the date of the Transfer. 

  

	 	(ii)	If Borrower does not deliver a Clean Site Assessment as described in Section 7.05(b)(i), then Lender will release Borrower from all of Borrower’s obligations under the Loan Documents except for liability under
Section 6.12 or Section 10.02(b). 

  

	 	(c)	Continuing Liability of Guarantor. If Guarantor requests a release of its liability under the Guaranty in connection with a Transfer which is permitted, preapproved, or approved by Lender pursuant to this Article
VII, and Borrower has provided a replacement Guarantor acceptable to Lender under the terms of Section 7.05(a)(ix)(B), then one of the following will apply: 

  

	 	(i)	If Borrower delivers to Lender a Clean Site Assessment, then Lender will release Guarantor from all of Guarantor’s obligations except Guarantor’s obligation to guaranty Borrower’s liability under
Section 6.12 or Section 10.02(b) with respect to any loss, liability, damage, claim, cost or expense which directly or indirectly arises from or relates to any Prohibited Activities or Conditions existing prior to the date of the Transfer.

  

	 	(ii)	If Borrower does not deliver a Clean Site Assessment as described in Section 7.05(b)(i), then Lender will release Guarantor from all of Guarantor’s obligations except for Guarantor’s obligation to
guaranty Borrower’s liability under Section 6.12 or Section 10.02(b). 

  

			
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	7.06	SPE Equity Owner Requirement Following Transfer. Following any Transfer pursuant to this Article VII, Borrower must satisfy the applicable conditions regarding an SPE Equity Owner set forth in
Section 6.13(a)(xxvi) of this Loan Agreement. 

  

	7.07	Additional Transfer Requirements - External Cap Agreement. 

  

	 	(a)	Continuation of Cap Agreement. If a Transfer of all or part of the Mortgaged Property permitted by this Loan Agreement occurs, Borrower will ensure that any third-party Cap Agreement is transferred to the
applicable transferee or, if the Cap Agreement is not transferable, Borrower will replace the third-party Cap Agreement in accordance with Lender’s then-current requirements. 

 

	 	(b)	Establishment or Modification of Rate Cap Agreement Reserve Fund. 

  

	 	(i)	If the third-party Cap Agreement which will be in place immediately following the Transfer is scheduled to expire prior to the Maturity Date, Lender may require Borrower to establish a Rate Cap Agreement Reserve Fund.

  

	 	(ii)	If Borrower has previously established a Rate Cap Agreement Reserve Fund, then Lender will determine whether the balance of any existing Rate Cap Agreement Reserve Fund is sufficient under then-current market conditions
to purchase a Replacement Cap Agreement, and may then take any of the following actions: 

  

	 	(A)	Lender may require Borrower to make an additional deposit into the Rate Cap Agreement Reserve Fund. 

  

	 	(B)	If funding of the Rate Cap Agreement Reserve Fund has been deferred, Lender may require Borrower to begin making monthly deposits into the Rate Cap Agreement Reserve Fund. 

 

	 	(C)	Lender may require Borrower to increase the amount of monthly deposits to the Rate Cap Agreement Reserve Fund. 

  

	7.08	Reserved. 

  

	7.09	Reserved. 

  

			
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	ARTICLE VIII	SUBROGATION. 

 If, and to the extent that, the proceeds of the Loan, or subsequent advances under
Section 9.02, are used to pay, satisfy or discharge a Prior Lien, such Loan proceeds or advances will be deemed to have been advanced by Lender at Borrower’s request, and Lender will automatically, and without further action on its part,
be subrogated to the rights, including Lien priority, of the owner or holder of the obligation secured by the Prior Lien, whether or not the Prior Lien is released. 
  

	ARTICLE IX	EVENTS OF DEFAULT AND REMEDIES. 

  

	9.01	Events of Default. The occurrence of any one or more of the following will constitute an Event of Default under this Loan Agreement: 

 

	 	(a)	Borrower fails to pay or deposit when due any amount required by the Note, this Loan Agreement or any other Loan Document. 

  

	 	(b)	Borrower fails to maintain the Insurance coverage required by Section 6.10. 

  

	 	(c)	Borrower or any SPE Equity Owner fails to comply with the provisions of Section 6.13 or if any of the assumptions contained in any nonconsolidation opinions delivered to Lender at any time is or becomes untrue in
any material respect. 

  

	 	(d)	Borrower or any SPE Equity Owner, any of its officers, directors, trustees, general partners or managers or any Guarantor commits fraud or a material misrepresentation or material omission in connection with:
(i) the application for or creation of the Indebtedness, (ii) any financial statement, Rent Schedule, or other report or information provided to Lender during the term of the Indebtedness, or (iii) any request for Lender’s
consent to any proposed action, including a request for disbursement of funds under this Loan Agreement. 

  

	 	(e)	Borrower fails to comply with the Condemnation provisions of Section 6.11. 

  

	 	(f)	A Transfer occurs that violates the provisions of Article VII, whether or not any actual impairment of Lender’s security results from such Transfer. 

 

	 	(g)	A forfeiture action or proceeding, whether civil or criminal, is commenced which could result in a forfeiture of the Mortgaged Property or otherwise materially impair the Lien created by the Security Instrument or
Lender’s interest in the Mortgaged Property. 

  

	 	(h)	 Borrower fails to perform any of its obligations under this Loan Agreement (other than those specified in Section 9.01), as and when required,
which failure continues for a period of 30 days after Notice of such failure by Lender to Borrower. However, if Borrower’s failure to perform its obligations as described in this Section 9.01(h) is of the nature that it cannot be cured
within the 30 day cure period after such Notice from Lender but reasonably could be cured within 90 days, then Borrower will have additional time as determined by Lender in 

  

			
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Lender’s Discretion, not to exceed an additional 60 days, in which to cure such default, provided that Borrower has diligently commenced to cure such default during the initial 30 day cure
period and diligently pursues the cure of such default. However, no such Notice or cure periods will apply in the case of any such failure which could, in Lender’s judgment, absent immediate exercise by Lender of a right or remedy under this
Loan Agreement, result in harm to Lender, danger to tenants or third parties, or impairment of the Note, the Security Instrument or this Loan Agreement or any other security given under any other Loan Document. 

 

	 	(i)	Borrower fails to perform any of its obligations as and when required under any Loan Document other than this Loan Agreement which failure continues beyond the applicable cure period, if any, specified in that Loan
Document. 

  

	 	(j)	The holder of any other debt instrument secured by a mortgage, deed of trust or deed to secure debt on the Mortgaged Property exercises any right to declare all amounts due under that debt instrument immediately due and
payable. 

  

	 	(k)	Any of the following occurs: 

  

	 	(i)	Borrower or any SPE Equity Owner commences any case, Proceeding or other action under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization,
conservatorship or relief of debtors (A) seeking to have an order for relief entered with respect to it, or seeking to adjudicate it bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debt, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets.

  

	 	(ii)	Any party other than Lender commences any case, Proceeding, or other action of a nature referred to in Section 9.01(k)(i) against Borrower or any SPE Equity Owner which (A) results in the entry of an order for
relief or any such adjudication or appointment, or (B) has not been dismissed, discharged or bonded for a period of 90 days. 

  

	 	(iii)	Any case, Proceeding or other action is commenced against Borrower or any SPE Equity Owner seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its
assets which results in the entry of any order by a court of competent jurisdiction for any such relief which is not vacated, discharged, or stayed or bonded pending appeal within 90 days from the entry thereof. 

  

			
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	 	(iv)	Borrower or any SPE Equity Owner takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in Section 9.01(k)(i), (ii) or (iii).

  

	 	(l)	Borrower or any SPE Equity Owner has made any representation or warranty in Article V or any other Section of this Loan Agreement that is false or misleading in any material respect. 

 

	 	(m)	If the Loan is secured by an interest under a Ground Lease, Borrower fails to comply with the provisions of Section 6.19. 

  

	 	(n)	If the Loan is a Supplemental Loan, any Event of Default occurs under (i) the Senior Note, the Senior Instrument or any other Senior Loan Document, or (ii) any loan document related to another loan in
connection with the Mortgaged Property, regardless of whether Borrower has obtained Supplemental Lender’s approval of the placement of such Lien on the Mortgaged Property. In addition, if the Loan is a Supplemental Loan, as Borrower under both
the Supplemental Instrument and the Senior Instrument, Borrower acknowledges and agrees that if there is an Event of Default under the Supplemental Note, the Supplemental Instrument or any other Supplemental Loan Document, such Event of Default will
be an Event of Default under the terms of the Senior Instrument and will entitle Senior Lender to invoke any and all remedies permitted to Senior Lender by applicable law, the Senior Note, the Senior Instrument or any of the other Senior Loan
Documents. 

  

	 	(o)	If the Mortgaged Property is subject to any covenants, conditions and/or restrictions, land use restriction agreements or similar agreements, Borrower fails to perform any of its obligations under any such agreement as
and when required, and such failure continues beyond any applicable cure period. 

  

	 	(p)	A Guarantor files for bankruptcy protection under the Bankruptcy Code or a Guarantor voluntarily becomes subject to any reorganization, receivership, insolvency proceeding or other similar proceeding pursuant to any
other federal or state law affecting debtor and creditor rights, or any creditor (other than Lender) of a Guarantor commences any involuntary case against a Guarantor pursuant to the Bankruptcy Code or other federal or state law affecting debtor and
creditor rights, unless each of the following conditions is satisfied: 

  

	 	(i)	Borrower or Guarantor provides Notice of such action to Lender within 30 days after the filing of such action. 

  

	 	(ii)	Either (A) the case is dismissed or discharged within 90 days after filing, or (B) within 90 days following the date of such filing or commencement, the affected Guarantor is replaced with one or more other
Persons acceptable to Lender, in Lender’s Discretion, each of whom executes and delivers to Lender a replacement Guaranty in form and content acceptable to Lender, together with such legal opinions as Lender deems necessary. 

 

	 	(iii)	If Borrower must provide a replacement Guarantor pursuant to Section 9.01(p)(ii), then Borrower pays the Transfer Processing Fee to Lender. 

  

			
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	 	(q)	With respect to a Guarantor, either of the following occurs: 

  

	 	(i)	The death of any Guarantor who is a natural person, unless within 30 days following the Guarantor’s death, Borrower causes one of the following to occur: 

 

	 	(A)	One or more Persons acceptable to Lender, in Lender’s Discretion, execute(s) and deliver(s) to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed on the
Closing Date, without any cost or expense to Lender. 

  

	 	(B)	The estate of the deceased Guarantor immediately ratifies the Guaranty in writing, and within 6 months after the date of the death of the deceased Guarantor one or more Persons, acceptable to Lender in Lender’s
Discretion, execute(s) and deliver(s) to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed on the Closing Date, without any cost or expense to Lender. 

 

	 	(ii)	The dissolution of any Guarantor who is an entity, unless each of the following conditions is satisfied: 

  

	 	(A)	Within 30 days following the dissolution of the Guarantor, Borrower causes one or more Persons acceptable to Lender, in Lender’s Discretion, to execute and deliver to Lender a guaranty in a form acceptable to
Lender and in substantially the same form as the Guaranty executed on the Closing Date, without any cost or expense to Lender. 

  

	 	(B)	Borrower pays the Transfer Processing Fee to Lender. 

  

	 	(r)	If a Cap Agreement is required, Borrower fails to provide Lender with a Replacement Cap Agreement prior to the expiration of the then-existing Cap Agreement. 

 

	 	(s)	Borrower or any Facility Operator fails, within the time deadlines set by any Governmental Authority, to correct any deficiency, which failure could result in an action by such Governmental Authority with respect to the
Facility that could have a Material Adverse Effect. 

  

			
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	 	(t)	A default under any of the Material Contracts by Borrower or by any Facility Operator, which continues beyond the expiration of any applicable cure period. 

 

	 	(u)	The Facility is no longer classified as housing for older persons pursuant to the Fair Housing Amendments Act of 1988. 

  

	 	(v)	Borrower, a Facility Operator, or the Facility is assessed fines or penalties in excess of $50,000.00 in the aggregate in any year by any state or any Medicare, Medicaid, TRICARE, health, reimbursement, or licensing
agency having jurisdiction over Borrower, a Facility Operator, or the Facility. 

  

	 	(w)	through (oo) are reserved. 

  

	9.02	Protection of Lender’s Security; Security Instrument Secures Future Advances. 

  

	 	(a)	If Borrower fails to perform any of its obligations under this Loan Agreement or any other Loan Document, or if any action or proceeding is commenced which purports to affect the Mortgaged Property, Lender’s
security or Lender’s rights under this Loan Agreement, including eminent domain, insolvency, code enforcement, civil or criminal forfeiture, enforcement of Hazardous Materials Laws, fraudulent conveyance or reorganizations or proceedings
involving a bankrupt or decedent, then Lender, in Lender’s Discretion, may make such appearances, file such documents, disburse such sums and take such actions as Lender reasonably deems necessary to perform such obligations of Borrower and to
protect Lender’s interest, including: (i) payment of Attorneys’ Fees and Costs, (ii) payment of fees and out-of-pocket expenses of accountants, inspectors and consultants, (iii) entry upon the Mortgaged Property to make
Repairs or secure the Mortgaged Property, (iv) procurement of the Insurance required by Section 6.10, (v) payment of amounts which Borrower has failed to pay under Section 6.08, (vi) performance of Borrower’s
obligations under Section 6.09, and (vii) advances made by Lender to pay, satisfy or discharge any obligation of Borrower for the payment of money that is secured by a Prior Lien. 

 

	 	(b)	Any amounts disbursed by Lender under this Section 9.02, or under any other provision of this Loan Agreement that treats such disbursement as being made under this Section 9.02, will be secured by the Security
Instrument, will be added to, and become part of, the principal component of the Indebtedness, will be immediately due and payable and will bear interest from the date of disbursement until paid at the Default Rate. 

 

	 	(c)	Nothing in this Section 9.02 will require Lender to incur any expense or take any action. 

  

			
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	9.03	Remedies. 

  

	 	(a)	Upon an Event of Default, Lender may exercise any or all of its rights and remedies provided under the Loan Documents and Borrower will pay all costs associated therewith, including Attorneys’ Fees and Costs.

  

	 	(b)	Each right and remedy provided in this Loan Agreement is distinct from all other rights or remedies under this Loan Agreement or any other Loan Document or afforded by applicable law or equity, and each will be
cumulative and may be exercised concurrently, independently or successively, in any order. Lender’s exercise of any particular right or remedy will not in any way prevent Lender from exercising any other right or remedy available to Lender.
Lender may exercise any such remedies from time to time and as often as Lender chooses. 

  

	 	(c)	Lender will have all remedies available to Lender under Revised Article 9 of the Uniform Commercial Code of the Property Jurisdiction, the Loan Documents and under applicable law. 

 

	 	(d)	Lender may also retain (i) all money in the Reserve Funds, including interest, and (ii) any Cap Payment, and in Lender’s sole and absolute discretion, may apply such amounts, without restriction and
without any specific order of priority, to the payment of any and all Indebtedness. 

  

	 	(e)	If a claim or adjudication is made that Lender has acted unreasonably or unreasonably delayed acting in any case where, by law or under this Loan Agreement or the other Loan Documents, Lender has an obligation to act
reasonably or promptly, then Lender will not be liable for any monetary damages, and Borrower’s sole remedy will be limited to commencing an action seeking injunctive relief or declaratory judgment. Any action or proceeding to determine whether
Lender has acted reasonably will be determined by an action seeking declaratory judgment. 

  

	 	(f)	Reserved. 

  

	9.04	Forbearance. 

  

	 	(a)	Lender may (but will not be obligated to) agree with Borrower, from time to time, and without giving Notice to, or obtaining the consent of, or having any effect upon the obligations of, any Guarantor or other third
party obligor, to take any of the following actions: 

  

	 	(i)	Extend the time for payment of all or any part of the Indebtedness. 

  

	 	(ii)	Reduce the payments due under this Loan Agreement, the Note or any other Loan Document. 

  

			
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	 	(iii)	Release anyone liable for the payment of any amounts under this Loan Agreement, the Note or any other Loan Document. 

  

	 	(iv)	Accept a renewal of the Note. 

  

	 	(v)	Modify the terms and time of payment of the Indebtedness. 

  

	 	(vi)	Join in any extension or subordination agreement. 

  

	 	(vii)	Release any portion of the Mortgaged Property. 

  

	 	(viii)	Take or release other or additional security. 

  

	 	(ix)	Modify the rate of interest or period of amortization of the Note or change the amount of the monthly installments payable under the Note. 

 

	 	(x)	Otherwise modify this Loan Agreement, the Note or any other Loan Document. 

  

	 	(b)	Any forbearance by Lender in exercising any right or remedy under the Note, this Loan Agreement or any other Loan Document or otherwise afforded by applicable law, will not be a waiver of or preclude the exercise of any
other right or remedy, or the subsequent exercise of any right or remedy. The acceptance by Lender of payment of all or any part of the Indebtedness after the due date of such payment, or in an amount which is less than the required payment, will
not be a waiver of Lender’s right to require prompt payment when due of all other payments on account of the Indebtedness or to exercise any remedies for any failure to make prompt payment. Enforcement by Lender of any security for the
Indebtedness will not constitute an election by Lender of remedies so as to preclude the exercise of any other right available to Lender. Lender’s receipt of any awards or proceeds under Sections 6.10 and 6.11 will not operate to cure or waive
any Event of Default. 

  

	9.05	Waiver of Marshalling. Notwithstanding the existence of any other security interests in the Mortgaged Property held by Lender or by any other party, Lender will have the right to determine the order in which any
or all of the Mortgaged Property will be subjected to the remedies provided in this Loan Agreement or any other Loan Document or applicable law. Lender will have the right to determine the order in which any or all portions of the Indebtedness are
satisfied from the proceeds realized upon the exercise of such remedies. Borrower and any party who now or in the future acquires a security interest in the Mortgaged Property and who has actual or constructive notice of the Security Instrument
waives any and all right to require the marshalling of assets or to require that any of the Mortgaged Property be sold in the inverse order of alienation or that any of the Mortgaged Property be sold in parcels or as an entirety in connection with
the exercise of any of the remedies permitted by applicable law or provided in this Loan Agreement. 

  

			
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	ARTICLE X	RELEASE; INDEMNITY. 

  

	10.01	Release. Borrower covenants and agrees that, in performing any of its duties under this Loan Agreement, none of Lender, Loan Servicer or any of their respective agents or employees will be liable for any losses,
claims, damages, liabilities and expenses that may be incurred by any of them as a result of such performance, except that no party will be released from liability for any losses, claims, damages, liabilities or expenses arising out of the willful
misconduct or gross negligence of such party. 

  

	10.02	Indemnity. 

  

	 	(a)	General Indemnity. Borrower agrees to indemnify, hold harmless and defend Lender, including any custodian, trustee and other fiduciaries who hold or have held a full or partial interest in the Loan for the
benefit of third parties, any prior owner or holder of the Note, the Loan Servicer, any prior Loan Servicer, the officers, directors, shareholders, partners, employees and trustees of each of the foregoing, and the heirs, legal representatives,
successors and assigns of each of the foregoing (collectively, “Indemnitees”) against any and all losses, claims, damages, liabilities and expenses including Attorneys’ Fees and Costs, which may be imposed or incurred by any of
them directly or indirectly arising out of, or in any way relating to, or as a result of: (i) any failure of the Mortgaged Property to comply with the laws, regulations, ordinance, code or decree of any Governmental Authority, including those
pertaining to the Americans with Disabilities Act, zoning, occupancy and subdivision of real property, (ii) any obligation of Borrower under any Lease, and (iii) any accident, injury or death to any natural person on the Mortgaged Property
or any damage to personal property located on the Mortgaged Property, except that no such party will be indemnified from liability for any losses, claims, damages, liabilities or expenses arising out of the willful misconduct or gross negligence of
such party. 

  

	 	(b)	Environmental Indemnity. Borrower agrees to indemnify, hold harmless and defend Indemnitees from and against all proceedings, claims, damages, penalties and costs (whether initiated or sought by Governmental
Authorities or private parties), including Attorneys’ Fees and Costs and remediation costs, whether incurred in connection with any judicial or administrative process or otherwise, arising directly or indirectly from any of the following:

  

	 	(i)	Any breach of any representation or warranty of Borrower in Section 5.05. 

  

	 	(ii)	Any failure by Borrower to perform any of its obligations under Section 6.12. 

  

	 	(iii)	The existence or alleged existence of any Prohibited Activity or Condition. 

  

			
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	 	(iv)	The presence or alleged presence of Hazardous Materials on or under the Mortgaged Property or in any of the Improvements. 

  

	 	(v)	The actual or alleged violation of any Hazardous Materials Law. 

  

	 	(c)	Indemnification Regarding ERISA Covenants. BORROWER WILL INDEMNIFY LENDER AND DEFEND AND HOLD LENDER HARMLESS FROM AND AGAINST ALL CIVIL PENALTIES, EXCISE TAXES, OR OTHER LOSS, COST, DAMAGE AND EXPENSE
(INCLUDING REASONABLE ATTORNEYS’ FEES AND COSTS INCURRED IN THE INVESTIGATION, DEFENSE AND SETTLEMENT OF CLAIMS AND LOSSES INCURRED IN CORRECTING ANY PROHIBITED TRANSACTION OR IN THE SALE OF A PROHIBITED LOAN, AND IN OBTAINING ANY INDIVIDUAL
PROHIBITED TRANSACTION EXEMPTION UNDER ERISA THAT MAY BE REQUIRED, IN LENDER’S SOLE AND ABSOLUTE DISCRETION) THAT LENDER MAY INCUR, DIRECTLY OR INDIRECTLY, AS A RESULT OF DEFAULT UNDER SECTION 6.20. THIS INDEMNITY WILL SURVIVE ANY TERMINATION,
SATISFACTION OR FORECLOSURE OF THE SECURITY INSTRUMENT. 

  

	 	(d)	Securitization Indemnification. 

  

	 	(i)	Borrower agrees to indemnify, hold harmless and defend the Indemnified Parties from and against any and all proceedings, losses, claims, damages, liabilities, penalties, costs and expenses (whether initiated or sought
by Governmental Authorities or private parties), including Attorneys’ Fees and Costs, which may be incurred by any Indemnified Party (either directly or indirectly), which arise out of, are in any way related to, or are as a result of a claim
that the Borrower Information contains an untrue statement of any material fact or the Borrower Information omits to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they are made,
not misleading (collectively, the “Securitization Indemnification”). 

  

	 	(ii)	Borrower will not be liable under the Securitization Indemnification if the claim is based on Borrower Information which Lender has materially misstated or materially misrepresented in the Disclosure Document.

  

	 	(iii)	For purposes of this Section 10.02(d): 

  

	 	(A)	“Borrower Information” includes any information provided at any time to Lender or Loan Servicer by Borrower, any SPE Equity Owner, any Facility Operator, any Guarantor, any Property Manager or any
Affiliates of the foregoing with respect to any of the following: 

  

	 	(1)	Any Person listed in Section 10.02(d)(iii)(A). 

  

			
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	 	(2)	The Loan. 

  

	 	(3)	The Mortgaged Property. 

 Borrower Information includes: (i) representations and
warranties made in the Loan Documents, (ii) financial statements of Borrower, any SPE Equity Owner, any Designated Entity for Transfers or any Guarantor, and (iii) operating statements and rent rolls with respect to the Mortgaged Property.
Borrower Information does not include any information provided directly to Lender or Loan Servicer by a third party such as an appraiser or an environmental consultant. 
  

	 	(B)	The term “Lender” includes its officers and directors. 

  

	 	(C)	An “Issuer Person” includes all of the following: 

  

	 	(1)	Any Person that has filed the registration statement, if any, relating to the Securitization, and any Affiliate of such Person. 

  

	 	(2)	Any Person acting as issuer, depositor, sponsor and/or in a similar capacity with respect to the Securitization, and any Affiliate of such Person. 

 

	 	(D)	The “Issuer Group” includes all of the following: 

  

	 	(1)	Each director and officer of any Issuer Person. 

  

	 	(2)	Each entity that Controls any Issuer Person within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act. 

 

	 	(E)	The “Underwriter Group” includes all of the following: 

  

	 	(1)	Each entity which is acting as an underwriter, manager, placement agent, initial purchaser or in a similar capacity with respect to the Securitization. 

 

	 	(2)	Each of its directors and officers. 

  

	 	(3)	 Each entity that Controls any such entity within the meaning of Section 15 of the Securities Act or Section 20

  

			
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of the Securities Exchange Act and is acting as an underwriter, manager, placement agent, initial purchaser or in a similar capacity with respect to the Securitization. 

 

	 	(4)	The directors and officers of such entity described in Section 10.02(d)(iii)(E)(1). 

  

	 	(F)	“Indemnified Party” or “Indemnified Parties” means one or more of Lender, Issuer Person, Issuer Group, and Underwriter Group. 

 

	 	(e)	Selection and Direction of Counsel. Counsel selected by Borrower to defend Indemnitees will be subject to the approval of those Indemnitees. In any circumstances in which the indemnity under this Article X
applies, Lender may employ its own legal counsel and consultants to prosecute, defend or negotiate any claim or legal or administrative proceeding and Lender, with the prior written consent of Borrower (which will not be unreasonably withheld,
delayed or conditioned) may settle or compromise any action or legal or administrative proceeding. However, unless an Event of Default has occurred and is continuing, or the interests of Borrower and Lender are in conflict, as determined by Lender
in Lender’s Discretion, Lender will permit Borrower to undertake the actions referenced in this Article X so long as Lender approves such action, which approval will not be unreasonably withheld or delayed. Borrower will reimburse Lender upon
demand for all costs and expenses incurred by Lender, including all costs of settlements entered into in good faith, consultants’ fees and Attorneys’ Fees and Costs. 

 

	 	(f)	Settlement or Compromise of Claims. Borrower will not, without the prior written consent of those Indemnitees who are named as parties to a claim or legal or administrative proceeding (“Claim”),
settle or compromise the Claim if the settlement (i) results in the entry of any judgment that does not include as an unconditional term the delivery by the claimant or plaintiff to Lender of a written release of those Indemnitees, satisfactory
in form and substance to Lender, or (ii) may materially and adversely affect Lender, as determined by Lender in Lender’s Discretion. 

  

	 	(g)	Effect of Changes to Loan on Indemnification Obligations. Borrower’s obligation to indemnify the Indemnitees will not be limited or impaired by any of the following, or by any failure of Borrower or any
Guarantor to receive notice of or consideration for any of the following: 

  

	 	(i)	Any amendment or modification of any Loan Document. 

  

	 	(ii)	Any extensions of time for performance required by any Loan Document. 

  

			
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	 	(iii)	Any provision in any of the Loan Documents limiting Lender’s recourse to property securing the Indebtedness, or limiting the personal liability of Borrower or any other party for payment of all or any part of the
Indebtedness. 

  

	 	(iv)	The accuracy or inaccuracy of any representations and warranties made by Borrower under this Loan Agreement or any other Loan Document. 

 

	 	(v)	The release of Borrower or any other Person, by Lender or by operation of law, from performance of any obligation under any Loan Document. 

 

	 	(vi)	The release or substitution in whole or in part of any security for the Indebtedness. 

  

	 	(vii)	Lender’s failure to properly perfect any Lien or security interest given as security for the Indebtedness. 

  

	 	(h)	Payments by Borrower. Borrower will, at its own cost and expense, do all of the following: 

  

	 	(i)	Pay or satisfy any judgment or decree that may be entered against any Indemnitee or Indemnitees in any legal or administrative proceeding incident to any matters against which Indemnitees are entitled to be indemnified
under this Article X. 

  

	 	(ii)	Reimburse Indemnitees for any expenses paid or incurred in connection with any matters against which Indemnitees are entitled to be indemnified under this Article X. 

 

	 	(iii)	Reimburse Indemnitees for any and all expenses, including Attorneys’ Fees and Costs, paid or incurred in connection with the enforcement by Indemnitees of their rights under this Article X, or in monitoring and
participating in any legal or administrative proceeding. 

  

	 	(i)	 Other Obligations. The provisions of this Article X will be in addition to any and all other obligations and liabilities that Borrower may have
under applicable law or under other Loan Documents, and each Indemnitee will be entitled to indemnification under this Article X without regard to whether Lender or that Indemnitee has exercised any rights against the Mortgaged Property or any other
security, pursued any rights against any Guarantor, or pursued any other rights available under the Loan Documents or applicable law. If Borrower consists of more than one Person, the obligation of those Persons to indemnify the Indemnitees under
this Article X will be joint and several. The obligation of Borrower to indemnify the Indemnitees under this Article X will survive any repayment or discharge of the Indebtedness, any foreclosure proceeding, any foreclosure sale, any delivery of any
deed in lieu of foreclosure, and any release 

  

			
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of record of the Lien of the Security Instrument. Notwithstanding the foregoing, if Lender has never been a mortgagee-in-possession of, or held title to, the Mortgaged Property, Borrower will
have no obligation to indemnify the Indemnitees under this Article X after the date of the release of record of the Lien of the Security Instrument by payment in full at the Maturity Date or by voluntary prepayment in full. 

 

	 	(j)	Reserved. 

  

	10.03	Reserved. 

  

	ARTICLE XI	MISCELLANEOUS PROVISIONS. 

  

	11.01	Waiver of Statute of Limitations, Offsets and Counterclaims. Borrower waives the right to assert any statute of limitations as a bar to the enforcement of this Loan Agreement or the Lien of the Security
Instrument or to any action brought to enforce any Loan Document. Borrower waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or otherwise to offset any
obligations to make the payments required by the Loan Documents. No failure by Lender to perform any of its obligations under the Loan Documents will be a valid defense to, or result in any offset against, any payments that Borrower is obligated to
make under any of the Loan Documents. 

  

	11.02	Governing Law; Consent to Jurisdiction and Venue. 

  

	 	(a)	This Loan Agreement, and any Loan Document which does not itself expressly identify the law which is to apply to it, will be governed by the laws of the Property Jurisdiction. 

 

	 	(b)	Borrower agrees that any controversy arising under or in relation to the Note, the Security Instrument, this Loan Agreement or any other Loan Document may be litigated in the Property Jurisdiction. The state and federal
courts and authorities with jurisdiction in the Property Jurisdiction will have jurisdiction over all controversies that may arise under or in relation to the Note, any security for the Indebtedness or any other Loan Document. Borrower irrevocably
consents to service, jurisdiction and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. However, nothing in this Section 11.02 is
intended to limit Lender’s right to bring any suit, action or proceeding relating to matters under this Loan Agreement in any court of any other jurisdiction. 

 

	11.03	Notice. 

  

	 	(a)	 All Notices under or concerning this Loan Agreement will be in writing. Each Notice will be deemed given on the earliest to occur of: (i) the
date when the Notice is received by the addressee, (ii) the first Business Day after the Notice is 

  

			
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delivered to a recognized overnight courier service, with arrangements made for payment of charges for next Business Day delivery, or (iii) the third Business Day after the Notice is
deposited in the United States mail with postage prepaid, certified mail, return receipt requested. Addresses for Notice are as follows: 

  

			
	If to Lender:	    	 Walker & Dunlop, LLC
 7501 Wisconsin Avenue,
Suite 1200E
 Bethesda, Maryland 20814
 Attention: Loan
Servicing

		
	If to Borrower:	    	 SNR 27 Alexis Gardens Owner LLC
 c/o Fortress
Investment Group
 1345 Avenue of the Americas
 New York, New
York 10105
 Attention: Justine Cheng

  

	 	(b)	Any party to this Loan Agreement may change the address to which Notices intended for it are to be directed by means of Notice given to the other party in accordance with this Section 11.03. Each party agrees that
it will not refuse or reject delivery of any Notice given in accordance with this Section 11.03, that it will acknowledge, in writing, the receipt of any Notice upon request by the other party and that any Notice rejected or refused by it will
be deemed for purposes of this Section 11.03 to have been received by the rejecting party on the date so refused or rejected, as conclusively established by the records of the U.S. Postal Service or the courier service. 

 

	 	(c)	Any Notice under the Note and any other Loan Document that does not specify how Notices are to be given will be given in accordance with this Section 11.03. 

 

	 	(d)	Reserved. 

  

	11.04	Successors and Assigns Bound. This Loan Agreement will bind the respective successors and assigns of Borrower and Lender, and the rights granted by this Loan Agreement will inure to Lender’s successors and
assigns. 

  

	11.05	Joint and Several (and Solidary) Liability. If more than one Person signs this Loan Agreement as Borrower, the obligations of such Persons will be joint and several. For a Mortgaged Property located in Louisiana,
if more than one Person signs this Loan Agreement as Borrower, the obligations of such Persons with be joint and several and solidary, and wherever the phrase “joint and several” appears in this Loan Agreement, the phrase is amended to
read “joint, several, and solidary.” 

  

			
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	11.06	Relationship of Parties; No Third Party Beneficiary. 

  

	 	(a)	The relationship between Lender and Borrower will be solely that of creditor and debtor, respectively, and nothing contained in this Loan Agreement will create any other relationship between Lender and Borrower. Nothing
contained in this Loan Agreement will constitute Lender as a joint venturer, partner or agent of Borrower, or render Lender liable for any debts, obligations, acts, omissions, representations or contracts of Borrower. 

 

	 	(b)	No creditor of any party to this Loan Agreement and no other Person will be a third party beneficiary of this Loan Agreement or any other Loan Document. Without limiting the generality of the preceding sentence:
(i) any arrangement (“Servicing Arrangement”) between Lender and any Loan Servicer for loss sharing or interim advancement of funds will constitute a contractual obligation of such Loan Servicer that is independent of the
obligation of Borrower for the payment of the Indebtedness, (ii) Borrower will not be a third party beneficiary of any Servicing Arrangement, and (iii) no payment by the Loan Servicer under any Servicing Arrangement will reduce the amount
of the Indebtedness. 

  

	11.07	Severability; Amendments. 

  

	 	(a)	The invalidity or unenforceability of any provision of this Loan Agreement will not affect the validity or enforceability of any other provision, and all other provisions will remain in full force and effect. This Loan
Agreement contains the entire agreement among the parties as to the rights granted and the obligations assumed in this Loan Agreement. 

  

	 	(b)	This Loan Agreement may not be amended or modified except by a writing signed by the party against whom enforcement is sought. 

  

	11.08	Disclosure of Information. Borrower acknowledges that Lender may provide to third parties with an existing or prospective interest in the servicing, enforcement, evaluation, performance, ownership, purchase,
participation or Securitization of the Loan, including any of the Rating Agencies, any entity maintaining databases on the underwriting and performance of commercial mortgage loans, as well as governmental regulatory agencies having regulatory
authority over Lender, any and all information which Lender now has or may hereafter acquire relating to the Loan, the Mortgaged Property, Borrower, any SPE Equity Owner or any Guarantor, as Lender determines necessary or desirable and that such
information may be included in disclosure documents in connection with a Securitization or syndication of participation interests, including a prospectus, prospectus supplement, offering memorandum, private placement memorandum or similar document
(each, a “Disclosure Document”) and also may be included in any filing with the Securities and Exchange Commission pursuant to the Securities Act or the Securities Exchange Act. To the fullest extent permitted under applicable law,
Borrower irrevocably waives all rights, if any, to prohibit such disclosure, including any right of privacy. 

  

	11.09	 Determinations by Lender. Unless otherwise provided in this Loan Agreement, in any instance where the consent or approval of Lender may be
given or is required, or where 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 86

 
any determination, judgment or decision is to be rendered by Lender under this Loan Agreement, the granting, withholding or denial of such consent or approval and the rendering of such
determination, judgment or decision will be made or exercised by Lender (or its designated representative) at its sole and exclusive option and in its sole and absolute discretion. 

 

	11.10	Sale of Note; Change in Servicer; Loan Servicing. The Note or a partial interest in the Note (together with this Loan Agreement and the other Loan Documents) may be sold one or more times without prior Notice to
Borrower. A sale may result in a change of the Loan Servicer. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given Notice of the change. All
actions regarding the servicing of the Loan evidenced by the Note, including the collection of payments, the giving and receipt of Notice, inspections of the Mortgaged Property, inspections of books and records, and the granting of consents and
approvals, may be taken by the Loan Servicer unless Borrower receives Notice to the contrary. If Borrower receives conflicting Notices regarding the identity of the Loan Servicer or any other subject, any such Notice from Lender will govern.

  

	11.11	Supplemental Financing. 

  

	 	(a)	This Section will apply only if at the time of any application referred to in Section 11.11(b), Freddie Mac has in effect a product described in its Multifamily Seller/Servicer Guide under which it purchases
supplemental mortgages on multifamily properties that meet specified criteria (“Supplemental Mortgage Product”). For purposes of this Section 11.11 only, the term “Freddie Mac” will include any affiliate or subsidiary
of Freddie Mac. 

  

	 	(b)	After the first anniversary of the date of the most recently incurred Senior Indebtedness, Freddie Mac will consider an application from an originating lender that is generally approved by Freddie Mac to sell mortgages
to Freddie Mac under the Supplemental Mortgage Product (“Approved Seller/Servicer”) for the purchase by Freddie Mac of a proposed indebtedness of Borrower to the Approved Seller/Servicer to be secured by one or more Supplemental
Instruments on the Mortgaged Property. Freddie Mac will purchase each Supplemental Loan secured by the Mortgaged Property if each of the following conditions is satisfied: 

 

	 	(i)	At the time of the proposed Supplemental Loan, no Event of Default may have occurred and be continuing and no event or condition may have occurred and be continuing that, with the giving of Notice or the passage of
time, or both, would become an Event of Default. 

  

	 	(ii)	Borrower and the Mortgaged Property must be acceptable to Freddie Mac under its Supplemental Mortgage Product. 

  

	 	(iii)	New loan documents must be entered into to reflect each Supplemental Loan, such documents to be acceptable to Freddie Mac in its discretion. 

  

			
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	 	(iv)	No Supplemental Loan may cause the combined debt service coverage ratio of the Mortgaged Property after the making of that Supplemental Loan to be less than the Minimum DSCR. As used in this Section, the term
“combined debt service coverage ratio” means, with respect to the Mortgaged Property, the ratio of: 

  

	 	(A)	the annual net operating income from the operations of the Mortgaged Property at the time of the proposed Supplemental Loan, 

to 
  

	 	(B)	the aggregate of the annual principal and interest payable on all of the following: 

  

	 	(I)	the Indebtedness under this Loan Agreement (using a 30 year amortization schedule), 

  

	 	(II)	any “Indebtedness” as defined in any security instruments recorded against the Mortgaged Property (using a 30 year amortization schedule for any Supplemental Loans), and 

 

	 	(III)	the proposed “Indebtedness” for any Supplemental Loan (using a 30 year amortization schedule). 

As used in this Section, “annual principal and interest” with respect to a floating rate loan will be calculated by Freddie Mac
using an interest rate equal to one of the following: 
  

	 	(X)	If the loan has an internal interest rate cap, the Capped Interest Rate. 

  

	 	(Y)	If the loan has an external interest rate cap, the Strike Rate plus the Margin. 

  

	 	(Z)	If the loan has no interest rate cap, the greater of (I) 7%, or (II) the then-current LIBOR Index Rate plus the Margin plus 300 basis points. 

The annual net operating income of the Mortgaged Property will be as determined by Freddie Mac in its discretion considering factors such as
income in place at the time of the proposed Supplemental Loan and income during the preceding 12 months, and actual, historical and anticipated operating expenses. Freddie Mac will determine the combined debt service coverage ratio of the Mortgaged
Property based on its 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 88

 
underwriting. Borrower will provide Freddie Mac such financial statements and other information Freddie Mac may require to make these determinations. 

 

	 	(v)	No Supplemental Loan may cause the combined loan to value ratio of the Mortgaged Property after the making of that Supplemental Loan to exceed the Maximum Combined LTV, as determined by Freddie Mac. As used in this
Section, “combined loan to value ratio” means, with respect to the Mortgaged Property, the ratio, expressed as a percentage, of: 

  

	 	(A)	the aggregate outstanding principal balances of all of the following: 

  

	 	(I)	the Indebtedness under this Loan Agreement, 

  

	 	(II)	any “Indebtedness” as defined in any security instruments recorded against the Mortgaged Property, and 

  

	 	(III)	the proposed “Indebtedness” for any Supplemental Loan, 

 to 

 

	 	(B)	the value of the Mortgaged Property. 

 Freddie Mac will determine the combined loan to value
ratio of the Mortgaged Property based on its underwriting. Borrower will provide Freddie Mac such financial statements and other information Freddie Mac may require to make these determinations. In addition, Freddie Mac, at Borrower’s expense,
may obtain MAI appraisals of the Mortgaged Property in order to assist Freddie Mac in making the determinations under this Section. If Freddie Mac requires an appraisal, then the value of the Mortgaged Property that will be used to determine whether
the Maximum Combined LTV has been met will be the lesser of the appraised value set forth in such appraisal or the value of the Mortgaged Property as determined by Freddie Mac. 

 

	 	(vi)	Borrower’s organizational documents are amended to permit Borrower to incur additional debt in the form of Supplemental Loans (Lender will consent to such amendment(s)). 

 

	 	(vii)	One or more Persons acceptable to Freddie Mac executes and delivers to the Approved Seller/Servicer a Guaranty in a form acceptable to Freddie Mac with respect to the exceptions to non-recourse liability described in
Freddie Mac’s form promissory note, unless Freddie Mac has elected to waive its requirement for a Guaranty. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 89

	 	(viii)	The loan term of each Supplemental Loan will be coterminous with the Senior Indebtedness or longer than the Senior Indebtedness, in Freddie Mac’s discretion. 

 

	 	(ix)	The Prepayment Premium Period of each Supplemental Loan will be coterminous with the Prepayment Premium Period or the combined Lockout Period and Defeasance Period, as applicable, of the Senior Indebtedness.

  

	 	(x)	The interest rate of each Supplemental Loan will be determined by Freddie Mac in its discretion. 

  

	 	(xi)	Lender enters into an intercreditor agreement (“Intercreditor Agreement”) acceptable to Freddie Mac and to Lender for each Supplemental Loan. 

 

	 	(xii)	Borrower’s payment of fees and other expenses charged by Lender, Freddie Mac, the Approved Seller/Servicer, and the Rating Agencies (including reasonable Attorneys’ Fees and Costs) in connection with reviewing
and originating each Supplemental Loan. 

  

	 	(xiii)	Commencing on the date that the first Supplemental Loan is originated and continuing for so long as any Supplemental Loan is outstanding, the first lien Senior Lender will begin collection of any deferred Monthly
Deposit or Revised Monthly Deposit for Capital Replacements in accordance with Section 4.04(e) (if applicable) as well as Imposition Deposits for any of the following Impositions marked ‘Deferred’ in Section 4.02(a):

  

	 	(A)	Property Insurance premiums or premiums for other Insurance required by Lender under Section 6.10. 

  

	 	(B)	Taxes and payments in lieu of taxes 

  

	 	(C)	Ground Rents 

 Such deposits will be credited to the payment of any such required Imposition
deposits under any Supplemental Loan. 
  

	 	(xiv)	If any covenants, conditions and restrictions affecting the Mortgaged Property provide for a lien for any assessments or other unpaid amounts, Borrower will provide satisfactory evidence that such lien will be
subordinate to the lien of the Supplemental Instrument. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 90

	 	(xv)	All other requirements of the Supplemental Mortgage Product must be met, unless Freddie Mac has elected to waive one or more of its requirements. 

 

	 	(xvi)	Reserved. 

  

	 	(xvii)	Reserved. 

  

	 	(c)	No later than 5 Business Days after Lender’s receipt of a written request from Borrower, Lender will provide the following information to an Approved Seller/Servicer: 

 

	 	(i)	The then-current outstanding principal balance of the Senior Indebtedness. 

  

	 	(ii)	Payment history of the Senior Indebtedness. 

  

	 	(iii)	Whether any Reserve Funds are being collected on the Senior Indebtedness and the amount of each such Reserve Fund deposit as of the date of the request. 

 

	 	(iv)	Whether any Repairs, Capital Replacements or improvements or rental achievement or burn-off guaranty requirements are existing or outstanding under the terms of the Senior Indebtedness. 

 

	 	(v)	A copy of the most recent inspection report for the Mortgaged Property. 

  

	 	(vi)	Whether any modifications or amendments have been made to the Loan Documents for the Senior Indebtedness since origination of the Senior Indebtedness and, if applicable, a copy of such modifications and amendments.

  

	 	(vii)	Whether to Lender’s knowledge any Event of Default exists under the Senior Indebtedness. 

Lender will only be obligated to provide this information in connection with Borrower’s request for a Supplemental Loan from an Approved
Seller/Servicer. Notwithstanding anything in this Section to the contrary, if Freddie Mac is the owner of the Note, this Section 11.11(c) is not applicable. 
  

	 	(d)	Lender will have no obligation to consent to any mortgage or Lien on the Mortgaged Property that secures any indebtedness other than the Indebtedness, except as set forth in this Loan Agreement. 

 

	 	(e)	 If a Supplemental Loan is made to Borrower, Borrower agrees that the terms of the Intercreditor Agreement will govern with respect to any
distributions of excess proceeds by Lender to the Supplemental Lender, and Borrower agrees that 

  

			
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Lender may distribute any excess proceeds received by Lender pursuant to the Loan Documents to Supplemental Lender pursuant to the Intercreditor Agreement. 

 

	11.12	Defeasance. (Section Applies if Loan is Assigned to REMIC Trust Prior to the Cut-off Date and if the Note provides for Defeasance). This Section 11.12 will apply only if the Note is assigned to a REMIC trust
prior to the Cut-off Date, and if the Note provides for Defeasance. If both of these conditions are met, then, subject to Section 11.12(a) and (c), Borrower will have the right to defease the Loan in whole (“Defeasance”) and
obtain the release of the Mortgaged Property from the Lien of the Security Instrument upon the satisfaction of each of the following conditions: 

  

	 	(a)	Borrower will not have the right to obtain Defeasance at any of the following times: 

  

	 	(i)	If the Loan is not assigned to a REMIC trust. 

  

	 	(ii)	During the Lockout Period. 

  

	 	(iii)	After the expiration of the Defeasance Period. 

  

	 	(iv)	After Lender has accelerated the maturity of the unpaid principal balance of, accrued interest on, and other amounts payable under, the Note pursuant to Section 11 of the Note. 

 

	 	(b)	Borrower will give Lender Notice (“Defeasance Notice”) specifying a Business Day (“Defeasance Closing Date”) on which Borrower desires to close the Defeasance. The Defeasance Closing
Date specified by Borrower may not be more than 60 calendar days, nor less than 30 calendar days, after the date on which Lender receives the Defeasance Notice. Lender will acknowledge receipt of the Defeasance Notice and will notify Borrower of the
identity of the accommodation borrower (“Successor Borrower”). 

  

	 	(c)	The Defeasance Notice must be accompanied by a $10,000 non-refundable fee (“Defeasance Fee”) for Lender’s processing of the Defeasance. If Lender does not receive the Defeasance Fee, then
Borrower’s right to obtain Defeasance pursuant to that Defeasance Notice will terminate. 

  

							
		 	(d)	 	  (i)	    	If Borrower timely pays the Defeasance Fee, but Borrower fails to perform its other obligations under this Section, Lender will have the right to retain the Defeasance Fee as liquidated damages for Borrower’s default and,
except as provided in Section 11.12(d)(ii), Borrower will be released from all further obligations under this Section 11.12. Borrower acknowledges that Lender will incur financing costs in arranging and preparing for the release of the
Mortgaged Property from the Lien of the Security Instrument in reliance on the executed Defeasance Notice. Borrower

  

			
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		 		 		    	agrees that the Defeasance Fee represents a fair and reasonable estimate, taking into account all circumstances existing on the date of this Loan Agreement, of the damages Lender will incur by reason of Borrower’s
default.
				
		 		 	  (ii) 	    	If the Defeasance is not consummated on the Defeasance Closing Date for any reason, Borrower agrees to reimburse Lender for all third party costs and expenses (other than financing costs covered by Section 11.12(d)(i)) incurred
by Lender in reliance on the executed Defeasance Notice, within 5 Business Days after Borrower receives a written demand for payment, accompanied by a statement, in reasonable detail, of Lender’s third party costs and expenses.
				
		 		 	     (iii)	    	All payments required to be made by Borrower to Lender pursuant to this Section 11.12 will be made by wire transfer of immediately available funds to the account(s) designated by Lender in its acknowledgement of the Defeasance
Notice.

  

	 	(e)	No Event of Default has occurred and is continuing. 

  

	 	(f)	Borrower will deliver each of the following documents to Lender, in form and substance satisfactory to Lender, on or prior to the Defeasance Closing Date, unless Lender has issued a written waiver of its right to
receive any such document: 

  

	 	(i)	One or more opinions of counsel for Borrower confirming each of the following: 

  

	 	(A)	Lender has a valid and perfected first Lien and first priority security interest in the Defeasance Collateral and the proceeds of the Defeasance Collateral. 

 

	 	(B)	The Pledge Agreement is duly authorized, executed, delivered and enforceable against Borrower in accordance with its terms. 

  

	 	(C)	If, as of the Defeasance Closing Date, the Note is held by a REMIC trust, then each of the following is correct: 

  

	 	(1)	The Defeasance has been effected in accordance with the requirements of Treasury Regulation Section 1.860G-2(a)(8) (as such regulation may be modified, amended or replaced from time to time). 

 

	 	(2)	The qualification and status of the REMIC trust as a REMIC will not be adversely affected or impaired as a result of the Defeasance. 

 

	 	(3)	The REMIC trust will not incur a tax under Section 860G(d) of the Tax Code as a result of the Defeasance. 

  

	 	(D)	The Defeasance will not result in a “sale or exchange” of the Note within the meaning of Section 1001(c) of the Tax Code and the temporary and final regulations promulgated thereunder. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 93

	 	(ii)	A written certificate from an independent certified public accounting firm (reasonably acceptable to Lender), confirming that the Defeasance Collateral will generate cash sufficient to make all Scheduled Debt Payments
as they fall due under the Note, including full payment due on the Note on the Maturity Date. 

  

	 	(iii)	Lender’s form of a pledge and security agreement (“Pledge Agreement”) and financing statements which pledge and create a first priority security interest in the Defeasance Collateral in favor of
Lender. 

  

	 	(iv)	Lender’s form of a transfer and assumption agreement (“Transfer and Assumption Agreement”), pursuant to which Borrower and any Guarantor (in each case, subject to satisfaction of all requirements
under this Loan Agreement) will be relieved from liability in connection with the Loan to the extent described in Sections 7.05(b) and 7.05(c), respectively, and Successor Borrower will assume all remaining obligations. 

 

	 	(v)	Forms of all documents necessary to release the Mortgaged Property from the Liens created by the Security Instrument and related UCC financing statements (collectively, “Release Instruments”), each in
appropriate form required by the Property Jurisdiction. 

  

	 	(vi)	Any other opinions, certificates, documents or instruments that Lender may reasonably request. 

  

	 	(g)	Borrower will deliver to Lender, on or prior to the Defeasance Closing Date, each of the following: 

  

	 	(i)	The Defeasance Collateral, which meets all of the following requirements: 

  

	 	(A)	It is owned by Borrower, free and clear of all Liens and claims of third-parties. 

  

	 	(B)	It is in an amount sufficient to provide for (1) redemption payments to occur prior, but as close as possible, to all successive Installment Due Dates occurring under the Note after the Defeasance Closing Date, and
(2) delivery of redemption proceeds at least equal to the amount of principal and interest due on the Note on each Installment Due Date including full payment due on the Note on the Maturity Date (“Scheduled Debt Payments”).

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 94

	 	(C)	All redemption payments received from the Defeasance Collateral will be paid directly to Lender to be applied on account of the Scheduled Debt Payments occurring after the Defeasance Closing Date. 

 

	 	(D)	The pledge of the Defeasance Collateral will be effected through the book-entry facilities of a qualified securities intermediary designated by Lender in conformity with all applicable laws. 

 

	 	(ii)	All accrued and unpaid interest and all other sums due under the Note, this Loan Agreement and under the other Loan Documents, including all amounts due under Section 11.12(i), up to the Defeasance Closing Date.

  

	 	(h)	Reserved. 

  

	 	(i)	Borrower will pay all reasonable costs and expenses incurred by Lender in connection with the Defeasance in full on or prior to the Defeasance Closing Date, which payment is required prior to Lender’s issuance of
the Release Instruments and whether or not Defeasance is completed. Such expenses include all fees, costs and expenses incurred by Lender and its agents in connection with the Defeasance (including Attorneys’ Fees and Costs for the review and
preparation of the Pledge Agreement and of the other materials described in this Loan Agreement and any related documentation, Rating Agencies’ fees, or other costs related to the Defeasance). 

Lender reserves the right to require that Borrower post a deposit to cover costs which Lender reasonably anticipates that Lender will incur in
connection with the Defeasance. 
  

	 	(j)	No Transfer Fee will be payable to Lender upon a Defeasance made in accordance with this Section 11.12. 

  

	 	(k)	Reserved. 

  

	11.13	Lender’s Rights to Sell or Securitize. Borrower acknowledges that Lender, and each successor to Lender’s interest, may (without prior Notice to Borrower or Borrower’s prior consent), sell or grant
participations in the Loan (or any part of the Loan), sell or subcontract the servicing rights related to the Loan, securitize the Loan or place the Loan in a trust. Borrower agrees to cooperate with all reasonable requests of Lender in connection
with any of the foregoing including taking the following actions: 

  

	 	(a)	Executing any financing statements or other documents deemed necessary by Lender or its transferee to create, perfect or preserve the rights and interest to be acquired by such transferee. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 95

	 	(b)	Delivering revised organizational documents, counsel opinions, and executed amendments to the Loan Documents satisfactory to the Rating Agencies. 

 

	 	(c)	Providing updated financial information with appropriate verification through auditors’ letters, if required by Lender. (If Lender requires that Borrower’s updated financial information be accompanied by
appropriate verification through auditor’s letters, then Lender will reimburse Borrower for the costs which Borrower reasonably incurs in connection with obtaining such auditors’ letters.) 

 

	 	(d)	Providing updated information on all litigation proceedings affecting Borrower, any Borrower Principal, any Facility Operator or Property Manager as required in Section 6.16. 

 

	 	(e)	Reviewing information contained in any Disclosure Document, including with respect to the Loan, Borrower, Guarantor, any Property Manager, and any Facility Operator, and providing a mortgagor estoppel certificate,
written confirmation of Borrower’s indemnification obligations under this Loan Agreement, and such other information about Borrower, any SPE Equity Owner, any Guarantor, any Property Manager, any Facility Operator, or the Mortgaged Property as
Lender may require for Lender’s offering materials. 

  

	11.14	Cooperation with Rating Agencies and Investors. Borrower covenants and agrees that if Lender decides to include the Loan as an asset of a Secondary Market Transaction, Borrower will do all of the following:

  

	 	(a)	At Lender’s request, meet with representatives of the Rating Agencies and/or investors to discuss the business and operations of the Mortgaged Property. 

 

	 	(b)	Permit Lender or its representatives to provide related information to the Rating Agencies and/or investors. 

  

	 	(c)	Cooperate with the reasonable requests of the Rating Agencies and/or investors in connection with all of the foregoing. 

  

	11.15	Letter of Credit Requirements. 

  

	 	(a)	Any Letter of Credit required under this Loan Agreement must satisfy the following conditions: 

  

	 	(i)	It must be a clean, irrevocable, unconditional standby letter of credit. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 96

	 	(ii)	It must name Lender as the sole beneficiary and permit Lender to assign the Letter of Credit without further consent from Issuer. 

  

	 	(iii)	It must have an initial term of not less than 12 months. 

  

	 	(iv)	It must be in the form required by Lender. 

  

	 	(v)	It must provide that it may be drawn on by Lender or Loan Servicer, in whole or in part, by presentation to Issuer of a sight draft without any other restrictions on the right to draw. 

 

	 	(vi)	It must be issued by an Issuer meeting Lender’s requirements, which Issuer (i) must be an Eligible Institution, and (ii) may not, unless Lender agrees in writing, be an affiliate of Borrower or Lender.

  

	 	(vii)	It must be obtained on behalf of Borrower by a Person other than Borrower’s general partners or managing members if Borrower is a general or limited partnership or limited liability company. Neither Borrower nor
the general partners or managing members, if applicable, may have any liability or other obligations under any reimbursement agreement with respect to the Letter of Credit. 

 

	 	(viii)	It may not be secured by a lien on all or any part of the Mortgaged Property or related Personalty. 

  

	 	(ix)	When delivered to Lender, it must be accompanied by an opinion acceptable to Lender in Lender’s Discretion issued by counsel to the Issuer that includes opinions as to Issuer’s power and authority to issue the
Letter of Credit and the enforceability of the Letter of Credit against Issuer and an updated nonconsolidation opinion with regard to any such Letter of Credit in form and substance satisfactory to Lender. 

 

	 	(b)	If at any time the Issuer of a Letter of Credit held by Lender ceases to be an Eligible Institution, Lender will have the right to immediately draw down the Letter of Credit in full and hold the Proceeds in an escrow
account in accordance with the terms of this Loan Agreement. 

  

	 	(c)	Each Letter of Credit held by Lender pursuant to this Loan Agreement provides additional collateral for the Indebtedness in addition to the lien of the Security Instrument. 

 

	11.16	Reserved. 

  

	11.17	Reserved. 

  

	11.18	Reserved. 

  

			
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	11.19	State Specific Provisions. Reserved 

  

	11.20	Time is of the Essence. Time is of the essence with respect to each covenant of this Loan Agreement. 

  

	ARTICLE XII	DEFINITIONS. 

 The following terms, when used in this Loan Agreement (including when used in the
recitals), will have the following meanings: 
 “Activities of Daily Living” means personal care services that provide the frail elderly
with assistance in eating, dressing, bathing, incontinence care and assistance in moving from one place to another (such as from a bed to a wheelchair). 

“Affiliate” of any Person means: 
  

	(i)	Any other individual or entity that is, directly or indirectly, one of the following: 

  

	 	(A)	In Control of the applicable Person. 

  

	 	(B)	Under the Control of the applicable Person. 

  

	 	(C)	Under common Control with the applicable Person. 

  

	(ii)	Any individual that is a director or officer of the applicable Person. 

  

	(iii)	Any individual that is a director or officer of any entity described in clause (i) of this definition. 

“Approved Seller/Servicer” is defined in Section 11.11(b). 

“Assignment of Management Agreement” means the Assignment of Management Agreement and Subordination of Management Fees dated the same date as
this Loan Agreement among Borrower, Lender and Property Manager, including all schedules, riders, allonges and addenda, as such Assignment of Management Agreement may be amended from time to time, and any future Assignment of Management Agreement
and Subordination of Management Fees executed in accordance with Section 6.09(d). 
 “Assisted Living Residences” means residences
that are designed to accommodate and provide 24-hour protective oversight and assistance for natural persons with functional limitations, including meals in a central location and assistance with Activities of Daily Living and Alzheimer’s care.

 “Attorneys’ Fees and Costs” means: (i) fees and out of pocket costs of Lender’s and Loan Servicer’s attorneys, as
applicable, including costs of Lender’s and Loan Servicer’s in-house 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 98

 
counsel, support staff costs, costs of preparing for litigation, computerized research, telephone and facsimile transmission expenses, mileage, deposition costs, postage, duplicating, process
service, videotaping and similar costs and expenses; (ii) costs and fees of expert witnesses, including appraisers; (iii) investigatory fees; and (iv) costs for any opinion required by Lender pursuant to the terms of the Loan
Documents. 
 “Bankruptcy Code” means the United States Bankruptcy Code, 11 U.S.C. Section 101 et seq., as amended from time to time.

 “Borrower” means all Persons identified as “Borrower” in the first paragraph of this Loan Agreement, together with their
successors and assigns. 
 “Borrower Information” is defined in Section 10.02(d). 

“Borrower Principal” means any of the following: 
  

	 	(i)	Any general partner of Borrower (if Borrower is a partnership). 

  

	 	(ii)	Any manager or managing member of Borrower (if Borrower is a limited liability company). 

  

	 	(iii)	Any Person (limited partner, member or shareholder) with a collective direct or indirect equity interest in Borrower equal to or greater than 25%. 

 

	 	(iv)	Any Guarantor of all or any portion of the Loan or of any obligations of Borrower under the Loan Documents. 

“Borrower Proof of Loss Threshold” means $500,000.00. 

“Borrower Proof of Loss Maximum” means $2,500,000.00. 

“Business Day” means any day other than a Saturday, a Sunday, or any other day on which Lender or the national banking associations are not
open for business. 
 “Cap Agreement” means any interest rate cap agreement, interest rate swap agreement or other interest rate-hedging
contract or agreement, in a form acceptable to Lender, obtained by Borrower from a Cap Provider as a requirement of any Loan Document or as a condition of Lender’s making the Loan. 

“Cap Collateral” means all of the following: 
  

	 	(i)	The Cap Agreement. 

  

	 	(ii)	The Cap Payments. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 99

	 	(iii)	All rights of Borrower under any Cap Agreement and all rights of Borrower to all Cap Payments, including contract rights and general intangibles, whether existing now or arising after the date of this Loan Agreement.

  

	 	(iv)	All rights, liens and security interests or guaranties granted by a Cap Provider or any other Person to secure or guaranty payment of any Cap Payments whether existing now or granted after the date of this Loan
Agreement. 

  

	 	(v)	All documents, writings, books, files, records and other documents arising from or relating to any of the foregoing, whether existing now or created after the date of this Loan Agreement. 

 

	 	(vi)	All cash and non-cash proceeds and products of (ii) through (v) of this definition. 

 “Cap
Payment(s)” means any and all monies payable pursuant to any Cap Agreement by a Cap Provider. 
 “Cap Provider” means the
third-party financial institution approved by Lender that is the counterparty under any Cap Agreement or Replacement Cap Agreement. 
 “Capital
Replacement” means the replacement of those items listed on Exhibit F. 
 “Capped Interest Rate” is defined in the Note, if
applicable. 
 “Claim” is defined in Section 10.02(f). 

“Clean Site Assessment” is defined in Section 7.05(b)(i). 

“Closing Date” means the date on which Lender disburses the proceeds of the Loan to or for the account of Borrower. 

“Commitment Letter” means the fully executed commitment letter or early rate lock application between Lender and Borrower issued in
connection with the Loan, as such document may have been modified, amended or extended. 
 “Completion Date” means, with respect to any
Repair, the date specified for that Repair in the Repair Schedule of Work (Exhibit C), as such date may be extended. 

“Condemnation” is defined in Section 6.11(a). 

“Continuing Care Retirement Community” or “CCRC” means a property designed to provide a continuum of care within a single
community. The living accommodations and care provided within a CCRC are a combination of the accommodations and services provided by Seniors Apartments, Independent Living Units, Assisted Living Residences and Skilled Nursing Beds. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 100

 “Contract” means any present or future contract for the provision of goods or services (or with
respect to payment therefore), together with all modifications, extensions and renewals, in connection with the operation or management of the Facility (other than Leases), including (i) those with Borrower or a Facility Operator, and
(ii) Third Party Provider Agreements, together with all modifications, extensions or renewals. 
 “Control” means to possess, directly
or indirectly, the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract or otherwise, including the power to elect a majority of the directors or trustees
of a corporation or trust, as the case may be. 
 “Corporate Lease” means a Lease for one or more residential units under which one entity
will rent all such units from Borrower and will have the right to sublease such units to individual subtenants. 
 “Cut-off Date” is
defined in the Note, if applicable. 
 “Default Rate” is defined in the Note. 

“Defeasance” is defined in Section 11.12. 

“Defeasance Closing Date” is defined in Section 11.12(b). 

“Defeasance Collateral” means: (i) a Freddie Mac Debt Security, (ii) a Fannie Mae Debt Security, (iii) U.S. Treasury
Obligations, or (iv) FHLB Obligations. 
 “Defeasance Fee” is defined in Section 11.12(c). 

“Defeasance Notice” is defined in Section 11.12(b). 

“Defeasance Period” is defined in the Note, if applicable. 

“Designated Entity for Transfers” means each entity so identified in Exhibit I, and that entity’s successors and permitted
assigns. 
 “Disclosure Document” is defined in Section 11.08. 

“Downgrade” as it applies to a License, means a License is modified so as to permit a less acute level of care (including elimination of
skilled nursing or assisted living care or services included in the License) by the Governmental Authority responsible for issuing such License. 

“Eligible Account” means an identifiable account which is separate from all other funds held by the holding institution that is either
(i) an account or accounts maintained with the corporate trust department of a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution, or (ii) a segregated trust
account or accounts maintained with the corporate trust department of a federal or state chartered depository 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 101

 
institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company is subject to regulations substantially similar to 12
C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state authority. An Eligible Account will not be evidenced by a certificate of deposit,
passbook or other instrument. 
 “Eligible Institution” means a federal or state chartered depository institution or trust company insured
by the Federal Deposit Insurance Corporation, the short term unsecured debt obligations or commercial paper of which are rated at least A-1 by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., P-1 by
Moody’s Investors Service, Inc. and F-3 by Fitch, Inc. in the case of accounts in which funds are held for 30 days or less or, in the case of letters of credit or accounts in which funds are held for more than 30 days, the long term unsecured
debt obligations of which are rated at least “A” by Fitch, Inc. and Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and “A2” by Moody’s Investors Service, Inc. If at any time
an Eligible Institution does not meet the required rating, the Loan Servicer must move the Eligible Account within 30 days of such event to an appropriately rated Eligible Institution. 

“Environmental Inspections” is defined in Section 6.12(e). 

“Environmental Permit” means any permit, license, or other authorization issued under any Hazardous Materials Law with respect to any
activities or businesses conducted on or in relation to the Mortgaged Property. 
 “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended. 
 “Event of Default” means the occurrence of any event listed in Section 9.01. 

“Extension Period” is defined in the Note, if applicable. 

“Facility” means the senior housing facility located on the Land, and including the Land and Improvements located on the Land. 

“Facility Operator” means any tenant (an “Operating Tenant”) under a lease with Borrower (as landlord) of all or
substantially all of the Facility, as well as any manager or Facility Operator pursuant to a Contract with Borrower or with an Operating Tenant. 

“Fannie Mae Debt Security” means any non-callable bond, debenture, note, or other similar debt obligation issued by the Federal National
Mortgage Association. 
 “FHLB Obligations” mean direct, non-callable and non-redeemable securities issued, or fully insured as to payment,
by the Federal Home Loan Bank. 
 “Fixtures” means all property owned by Borrower which is attached to the Land or the Improvements so as
to constitute a fixture under applicable law, including: machinery, equipment, engines, boilers, incinerators and installed building materials; systems and equipment 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 102

 
for the purpose of supplying or distributing heating, cooling, electricity, gas, water, air or light; antennas, cable, wiring and conduits used in connection with radio, television, security,
fire prevention or fire detection or otherwise used to carry electronic signals; telephone systems and equipment; elevators and related machinery and equipment; fire detection, prevention and extinguishing systems and apparatus; security and access
control systems and apparatus; plumbing systems; water heaters, ranges, stoves, microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers and other appliances; light fixtures, awnings, storm windows and storm doors; pictures,
screens, blinds, shades, curtains and curtain rods; mirrors; cabinets, paneling, rugs and floor and wall coverings; fences, trees and plants; swimming pools; and exercise equipment. 

“Freddie Mac” means the Federal Home Loan Mortgage Corporation. 

“Freddie Mac Debt Security” means any non-callable bond, debenture, note, or other similar debt obligation issued by Freddie Mac. 

“Freddie Mac Web Site” means the web site of Freddie Mac, located at www.freddiemac.com. 

“GAAP” means generally accepted accounting principles. 

“Governmental Authority” means any board, commission, department, agency or body of any municipal, county, state or federal governmental
unit, or any subdivision of any of them, that has or acquires jurisdiction over the Mortgaged Property, or the use, operation or improvement of the Mortgaged Property, or over Borrower including all applicable licensing or accreditation bodies or
agencies (whether federal, state, county, district, municipal, city or otherwise, whether now or hereafter in existence, including applicable non-governmental organizations, such as the Joint Commission on the Accreditation of Healthcare
Organizations) that have or acquire jurisdiction over Borrower, a Facility Operator (as pertains to the Facility), the Facility or the use, operation, improvement, accreditation, licensing or permitting of the Facility or the operations of the
Facility. 
 “Governmental Payor Program” means any Medicare, Medicaid, TRICARE programs or similar federal, state, local or any other
third party payors’ programs or other similar provider payment programs, or any so-called “waiver program” associated therewith. 

“Guarantor” means the Person(s) required by Lender to guaranty all or a portion of Borrower’s obligations under the Loan Documents, as
set forth in the Guaranty: The required Guarantors as of the date of this Loan Agreement are set forth in Exhibit I. 
 “Guaranty”
means the Guaranty executed by Guarantor and/or any replacement or supplemental guaranty executed pursuant to the terms of this Loan Agreement. 

“Hazardous Materials” means petroleum and petroleum products and compounds containing them, including gasoline, diesel fuel and oil;
explosives; flammable materials; radioactive materials; polychlorinated biphenyls (PCBs) and compounds containing them; lead and lead-based paint; asbestos or asbestos containing materials in any form that is or could become

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 103

 
friable; underground or above-ground storage tanks, whether empty or containing any substance; any substance the presence of which on the Mortgaged Property is prohibited by any Governmental
Authority; any medical products or devices, including, those materials defined as “medical waste” or “biological waste” under relevant statutes, ordinances or regulations pertaining to Hazardous Materials Law; any substance that
requires special handling and any other material or substance now or in the future that (i) is defined as a “hazardous substance,” “hazardous material,” “hazardous waste,” “toxic substance,” “toxic
pollutant,” “contaminant,” or “pollutant” by or within the meaning of any Hazardous Materials Law, or (ii) is regulated in any way by or within the meaning of any Hazardous Materials Law. 

“Hazardous Materials Law” and “Hazardous Materials Laws” means any and all federal, state and local laws, ordinances,
regulations and standards, rules, policies and other governmental requirements, administrative rulings and court judgments and decrees in effect now or in the future, including all amendments, that relate to Hazardous Materials or the protection of
human health or the environment and apply to Borrower or to the Mortgaged Property. Hazardous Materials Laws include the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601, et seq., the Resource
Conservation and Recovery Act of 1976, 42 U.S.C. Section 6901, et seq., the Toxic Substance Control Act, 15 U.S.C. Section 2601, et seq., the Clean Water Act, 33 U.S.C. Section 1251, et seq., and the Hazardous Materials Transportation
Act, 49 U.S.C. Section 5101 et seq., and their state analogs. 
 “Healthcare Laws” means all federal, state, municipal or other
Governmental Authority laws, codes and statutes and all regulations and rules promulgated thereunder and all Governmental Authority interpretations thereof, applicable or pertaining to the ownership, leasing, operation or management of medical or
senior housing facilities (including Independent Living Units, adult care facilities, Assisted Living Residences, skilled nursing care, rehabilitation services, CCRC’s, and dementia and/or memory care facilities), including those pertaining to
Licenses necessary to operate or manage any such facility, those pertaining to billing any Governmental Payor Program, those pertaining to patient care and Privacy Laws, quality and safety standards, accepted professional standards, and principles
that apply to professionals providing services to the Facility, accreditation standards, and requirements of the applicable state department of health and all other Governmental Authorities including, those requirements relating to the
Facility’s physical structure and environment, licensing, quality and adequacy of medical care, distribution of pharmaceuticals, rate setting, equipment, personnel, operating policies, additions to facilities and services and fee splitting.

 “HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as amended from time to time, together with all rules and
regulations promulgated thereunder from time to time. 
 “HVAC System” is defined in Section 6.10(a)(v). 

“Immediate Family Members” means a Person’s spouse, parent, child (including stepchild), grandchild (including step-grandchild) or
sibling. 
 “Imposition Reserve Deposits” is defined in Section 4.02(a). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 104

 “Impositions” is defined in Section 4.02(a). 

“Improvements” means the buildings, structures and improvements now constructed or at any time in the future constructed or placed upon the
Land, including any future alterations, replacements and additions. 
 “Indebtedness” means the principal of, interest at the fixed or
variable rate set forth in the Note on, and all other amounts due at any time under, the Note, this Loan Agreement or any other Loan Document, including prepayment premiums, late charges, default interest, and advances as provided in
Section 9.02 to protect the security of the Security Instrument. 
 “Indemnified Party/ies” is defined in Section 10.02(d). 

“Indemnitees” is defined in Section 10.02(a). 

“Independent Living Units” means residential units that are accompanied by optional services designed to aid the residents’
independence, including building security, optional meals, housekeeping, laundry, and at least some incidental services and activities not related to personal care, such as valet shopping, financial planning, unscheduled transportation, beautician
services, recreational and social activities and 24-hour staff presence. 
 “Installment Due Date” is defined in the Note. 

“Insurance” means Property Insurance, liability insurance and all other insurance that Lender requires Borrower to maintain pursuant to this
Loan Agreement. 
 “Intended Use” is defined in Section 5.25. 

“Intercreditor Agreement” is defined in Section 11.11(b). 

“Investor Interest Transfer” is defined in Section 7.03(d)(vi). 

“Investor Interests” is defined in Section 7.03(d)(vi). 

“Issuer” means the issuer of any Letter of Credit. 

“Issuer Group” is defined in Section 10.02(d). 

“Issuer Person” is defined in Section 10.02(d). 

“Land” means the land described in Exhibit A. 

“Leases” means all present and future leases, master leases, operating leases, subleases, occupancy agreements pertaining to occupants of the
Facility, including both residential and commercial agreements and patient admission or resident care agreements, licenses, concessions 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 105

 
or grants or other possessory interests now or hereafter in force, whether oral or written, covering or affecting the Mortgaged Property, or any portion of the Mortgaged Property (including
proprietary leases or occupancy agreements if Borrower is a cooperative housing corporation), and all modifications, extensions or renewals. 

“Lender” means the entity identified as “Lender” in the first paragraph of this Loan Agreement, or any subsequent holder of the
Note. 
 “Lender’s Discretion” means Lender’s reasonable discretion unless otherwise set forth in this Loan Agreement. 

“Letter of Credit” means any letter of credit required under the terms of this Loan Agreement or any other Loan Document. 

“LIBOR Index Rate” is defined in the Note, if applicable. 

“License” means any license, permit, regulatory agreement, certificate, approval, certificate of need or similar certificate, authorization,
accreditation, approved provider status in any approved provider payment program, or approval issued by an applicable state department of health (or any subdivision thereof) or state licensing agency, as applicable, in each instance whether issued
by a Governmental Authority or otherwise, used in connection with, or necessary or desirable to use, occupy or operate the Facility for its Intended Use, including the provision of all goods and services to be provided by Borrower or the Facility
Operator to the residents of the Facility. 
 “Lien” means any mortgage, deed of trust, deed to secure debt, security interest or other
lien or encumbrance on the Mortgaged Property. 
 “Loan” is defined on Page 1 of this Loan Agreement. 

“Loan Agreement” means this Multifamily Loan and Security Agreement. 

“Loan Application” is defined in Section 5.16(a). 

“Loan Documents” means the Note, the Security Instrument, this Loan Agreement, all guaranties, all indemnity agreements, all collateral
agreements, UCC filings, O&M Programs, the MMP and any other documents now or in the future executed by Borrower, any Guarantor or any other Person in connection with the Loan evidenced by the Note, as such documents may be amended from time to
time. 
 “Loan Servicer” means the entity that from time to time is designated by Lender to collect payments and deposits and receive
Notices under the Note, the Security Instrument, this Loan Agreement and any other Loan Document, and otherwise to service the Loan evidenced by the Note for the benefit of Lender. 

“Lockout Period,” if applicable, is defined in the Note. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 106

 “Major Building System” means one that is integral to the Improvements, providing basic services
to the tenants and other occupants of the Improvements including: 
  

	 	•	 	Electrical (electrical lines or power upgrades, excluding fixture replacement). 

  

	 	•	 	HVAC (central and unit systems, excluding replacement of in kind unit systems). 

  

	 	•	 	Plumbing (supply and waste lines, excluding fixture replacement). 

  

	 	•	 	Structural (foundation, framing, and all building support elements). 

 “Manager” or
“Managers” means a Person who is named or designated as a manager or managing member or otherwise acts in the capacity of a manager or managing member of a limited liability company in a limited liability company agreement or
similar instrument under which the limited liability company is formed or operated. 
 “Margin” is defined in the Note, if applicable. 

“Material Adverse Effect” means a significant detrimental effect on: (i) the Mortgaged Property (including the Facility), (ii) the
business, prospects, profits, operations or condition (financial or otherwise) of Borrower or any Facility Operator, (iii) the enforceability, validity, perfection or priority of the Lien of any Loan Document, (iv) the ability of Borrower
or any Facility Operator to perform any obligations under any Loan Document or (v) Borrower’s or any Facility Operator’s interest in the Facility including a Downgrade, termination, revocation or suspension of, or refusal to renew or
reissue, any applicable License, or a ban on new resident admissions. 
 “Material Contract” means Contracts: 

 

	 	(i)	For preparing or serving food (but do not include food supply Contracts), regardless of annual consideration or term. 

  

	 	(ii)	For medical services or healthcare provider agreements, regardless of annual consideration or term. 

  

	 	(iii)	The average annual consideration of which, directly or indirectly, is at least $20,000. 

  

	 	(iv)	Having a term of more than one year unless subject to termination by Borrower or if Borrower is not a party to the Contract, the Facility Operator, and their respective successors and assigns, upon not more than 30 days
notice, without cause and without payment of any termination fee, penalty or extra charge. 

  

	 	(v)	Determined by Lender to be material to the operation of the Facility. 

 “Maturity Date” means
the Scheduled Maturity Date, as defined in the Note. 
 “Maximum Combined LTV” means 70%. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 107

 “Minimum DSCR” means, with respect to a Supplemental Loan, 

 

	 	(i)	if the Senior Indebtedness bears interest at a fixed rate, then 

  

	 	(A)	1.30:1 for Mortgaged Properties classified by Lender as Independent Living, and 

  

	 	(B)	1.40:1 for Mortgaged Properties classified by Lender as Assisted Living, 

 or 

 

	 	(ii)	if the Senior Indebtedness bears interest at a floating rate, then 

  

	 	(A)	1.10:1 for Mortgaged Properties classified by Lender as Independent Living and 

  

	 	(B)	1.15:1 for Mortgaged Properties classified by Lender as Assisted Living. 

 “Minimum Occupancy”
means 85% of units at the Mortgaged Property with leases that comply with Section 5.11, Section 6.09(e)(v)(E), and Section 6.15. 

“MMP” means a moisture management plan to control water intrusion and prevent the development of Mold or moisture at the Mortgaged Property
throughout the term of this Loan Agreement. 
 “Modified Non-Residential Lease” means an extension or modification of any Non-Residential
Lease, which Non-Residential Lease was in existence as of the date of this Loan Agreement. 
 “Mold” means mold, fungus, microbial
contamination or pathogenic organisms. 
 “Mortgaged Property” means all of Borrower’s present and future right, title and interest in
and to all of the following: 
  

	 	(i)	The Land, or, if Borrower’s interest in the Land is pursuant to a Ground Lease, the Ground Lease and the Leasehold Estate. 

  

	 	(ii)	The Improvements (including the Facility). 

  

	 	(iii)	The Fixtures. 

  

	 	(iv)	The Personalty. 

  

	 	(v)	All current and future rights, including air rights, development rights, zoning rights and other similar rights or interests, easements, tenements, rights of way, strips and gores of land, streets, alleys, roads, sewer
rights, waters, watercourses and appurtenances related to or benefiting the Land or the Improvements, or both, and all rights-of-way, streets, alleys and roads which may have been or may in the future be vacated. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 108

	 	(vi)	All proceeds paid or to be paid by any insurer of the Land, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property, whether or not Borrower obtained the Insurance pursuant to
Lender’s requirement. 

  

	 	(vii)	All awards, payments and other compensation made or to be made by any municipal, state or federal authority with respect to the Land or the Leasehold Estate, as applicable, the Improvements, the Fixtures, the Personalty
or any other part of the Mortgaged Property, including any awards or settlements resulting from Condemnation proceedings or the total or partial taking of the Land, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged
Property under the power of eminent domain or otherwise and including any conveyance in lieu thereof. 

  

	 	(viii)	All contracts, options and other agreements for the sale of the Land, or the Leasehold Estate, as applicable, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property entered into by
Borrower now or in the future, including cash or securities deposited to secure performance by parties of their obligations. 

  

	 	(ix)	All proceeds from the conversion, voluntary or involuntary, of any of the items described in items (i) through (viii) of this definition, into cash or liquidated claims, and the right to collect such proceeds.

  

	 	(x)	All Rents and Leases. 

  

	 	(xi)	All earnings, royalties, accounts receivable, issues and profits from the Land, the Improvements or any other part of the Mortgaged Property, and all undisbursed proceeds of the Loan. 

 

	 	(xii)	All Imposition Reserve Deposits. 

  

	 	(xiii)	All refunds or rebates of Impositions by any Governmental Authority or insurance company (other than refunds applicable to periods before the real property tax year in which this Loan Agreement is dated).

  

	 	(xiv)	All tenant security deposits which have not been forfeited by any tenant under any Lease and any bond or other security in lieu of such deposits. 

 

	 	(xv)	All names under or by which any of the Mortgaged Property may be operated or known, and all trademarks, trade names and goodwill relating to any of the Mortgaged Property. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 109

	 	(xvi)	If required by the terms of Section 4.05 or elsewhere in this Loan Agreement, all rights under any Letter of Credit and the Proceeds, as such Proceeds may increase or decrease from time to time. 

 

	 	(xvii)	If the Note provides for interest to accrue at a floating or variable rate and there is a Cap Agreement, the Cap Collateral. 

  

	 	(xviii)	All payments received and all rights to receive payments from any source, which payments (or rights thereto) arise from operation of or at the Facility, including entrance fees, application fees, processing fees,
community fees and any other amounts or fees deposited or to be deposited by any resident or tenant, payments received and the right to receive payments of second party charges added to base rental income, base and additional meal sales, payments
received and rights to receive payments from commercial operations located at or on the Facility or provided as a service to the occupants of the Facility, rental from guest suites, seasonal lease charges, rental payments under furniture leases,
income from laundry service, and income and fees from any and all other services provided to residents of the Facility. 

  

	 	(xix)	All rights to payments from Governmental Payor Programs and rights to payment from private insurers, arising from the operation of the Facility. 

 

	 	(xx)	All Licenses. 

  

	 	(xxi)	All Contracts, including operating contracts, franchises, licensing agreements, healthcare services contracts, food service contracts and other contracts for services related to the operation of the Facility.

  

	 	(xxii)	All utility deposits. 

  

	 	(xxiii)	Reserved. 

  

	 	(xxiv)	Reserved. 

  

	 	(xxv)	Reserved. 

 “New Non-Residential Lease” is any Non-Residential Lease not in existence as of
the date of this Loan Agreement. 
 “Non-Residential Lease” is a Lease of a portion of the Mortgaged Property to be used for
non-residential purposes. 
 “Note” means the Multifamily Note (including any Amended and Restated Note, Consolidated, Amended and Restated
Note, or Extended and Restated Note) executed by Borrower in favor of Lender and dated as of the date of this Loan Agreement, including all schedules, riders, allonges and addenda, as such Multifamily Note may be amended, modified and/or restated
from time to time. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 110

 “Notice” or “Notices” means all notices, demands and other communication
required under the Loan Documents, provided in accordance with the requirements of Section 11.03. 
 “O&M Program” is defined in
Section 6.12(c) and consists of the following: Asbestos 
 “Person” means any natural person, sole proprietorship, corporation,
general partnership, limited partnership, limited liability company, limited liability partnership, limited liability limited partnership, joint venture, association, joint stock company, bank, trust, estate, unincorporated organization, any
federal, state, county or municipal government (or any agency or political subdivision thereof), endowment fund or any other form of entity. 

“Personalty” means all of the following: 
  

	 	(i)	Accounts (including deposit accounts) of Borrower related to the Mortgaged Property. 

  

	 	(ii)	Equipment and inventory owned by Borrower, which are used now or in the future in connection with the ownership, management or operation of the Land or Improvements or are located on the Land or Improvements, including
furniture, furnishings, dishes, silverware, glassware, kitchen equipment, machinery, building materials, goods, supplies, tools, books, records (whether in written or electronic form) and computer equipment (hardware and software).

  

	 	(iii)	Other tangible personal property owned by Borrower which is used now or in the future in connection with the ownership, management or operation of the Land or Improvements or is located on the Land or in the
Improvements, including ranges, stoves, microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers and other appliances (other than Fixtures). 

 

	 	(iv)	Any operating agreements relating to the Land or the Improvements. 

  

	 	(v)	Any surveys, plans and specifications and contracts for architectural, engineering and construction services relating to the Land or the Improvements. 

 

	 	(vi)	All other intangible property, general intangibles and rights relating to the operation of, or used in connection with, the Land or the Improvements, including all governmental permits relating to any activities on the
Land and including subsidy or similar payments received from any sources, including a Governmental Authority. 

  

	 	(vii)	Any rights of Borrower in or under any Letter of Credit. 

 “Pledge Agreement” is defined in
Section 11.12(f)(iii). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 111

 “Prepayment Premium Period” is defined in the Note. 

“Prior Lien” means a pre-existing mortgage, deed of trust or other Lien encumbering the Mortgaged Property. 

“Privacy Laws” means all federal, state, municipal or other Governmental Authority laws, codes and statutes and all regulations and rules
promulgated thereunder and all Governmental Authority interpretations thereof, applicable or pertaining to resident, tenant and patient privacy. Privacy Laws include HIPAA. 

“Proceeding” means, whether voluntary or involuntary, any case, proceeding or other action against Borrower or any SPE Equity Owner under any
existing or future law of any jurisdiction relating to bankruptcy, insolvency, reorganization or relief of debtors. 
 “Proceeds” means the
cash obtained by a draw on a Letter of Credit. 
 “Prohibited Activity or Condition” means each of the following: 

 

	 	(i)	The presence, use, generation, release, treatment, processing, storage (including storage in above-ground and underground storage tanks), handling or disposal of any Hazardous Materials on or under the Mortgaged
Property. 

  

	 	(ii)	The transportation of any Hazardous Materials to, from or across the Mortgaged Property. 

  

	 	(iii)	Any occurrence or condition on the Mortgaged Property, which occurrence or condition is or may be in violation of Hazardous Materials Laws. 

 

	 	(iv)	Any violation of or noncompliance with the terms of any Environmental Permit with respect to the Mortgaged Property. 

  

	 	(v)	Any violation or noncompliance with the terms of any O&M Program. 

 However, the term “Prohibited
Activity or Condition” expressly excludes lawful conditions permitted by an O&M Program or the safe and lawful use and storage of quantities of: (i) medical products or devices or medical waste, (ii) pre-packaged supplies,
cleaning materials and petroleum products customarily used in the operation and maintenance of comparable multifamily properties, (iii) cleaning materials, personal grooming items and other items sold in pre-packaged containers for consumer use
and used by tenants and occupants of residential dwelling units in the Mortgaged Property, and (iv) petroleum products used in the operation and maintenance of motor vehicles from time to time located on the Mortgaged Property’s parking
areas, so long as all of the foregoing are used, stored, handled, transported and disposed of in compliance with Hazardous Materials Laws. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 112

 “Property Improvement Alterations” means alterations and additions to the Improvements existing
at or upon the Mortgaged Property as of the date of this Loan Agreement, which are being made to renovate or upgrade the Mortgaged Property and are not otherwise permitted under Section 6.09(e). Repairs, Capital Replacements, Restoration or
other work required to be performed at the Mortgaged Property pursuant to Sections 6.10 or 6.11 will not constitute Property Improvement Alterations. 

“Property Improvement Notice” means a Notice to Lender that Borrower intends to begin the Property Improvement Alterations identified in the
Property Improvement Notice. 
 “Property Improvement Total Amount” means the aggregate of $5,240,000.00 during the term of the Mortgage.

 “Property Insurance” is defined in Section 6.10(a). 

“Property Jurisdiction” means the jurisdiction in which the Land is located. 

“Property Manager” means SNR 27 ALEXIS GARDENS MANAGEMENT, LLC, a Delaware limited liability company, and HOLIDAY AL MANAGEMENT SUB LLC, a
Delaware limited liability company, both individually and collectively, or another residential rental property manager which is approved by Lender in writing. 

“Property Seller” is defined in Section 5.24. 

“Public Fund/REIT Securities” is defined in Section 7.03(c). 

“Rate Cap Agreement Reserve Fund” means the account established pursuant to Section 4.07, if applicable, to pay for the cost of a
Replacement Cap Agreement. 
 “Rating Agencies” means Fitch, Inc., Moody’s Investors Service, Inc., or Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc., or any successor entity of the foregoing, or any other nationally recognized statistical rating organization. 

“Release Instruments” is defined in Section 11.12(f). 

“Remedial Work” is defined in Section 6.12(f). 

“Rent(s)” means all rents (whether from residential or non-residential space), revenues and other income of the Land or the Improvements,
parking fees, laundry and vending machine income and fees and charges for food, health care and other services provided at the Mortgaged Property, whether now due, past due or to become due, and deposits forfeited by tenants, and, if Borrower is a
cooperative housing corporation or association, maintenance fees, charges or assessments payable by shareholders or residents under proprietary leases or occupancy agreements, whether now due, past due or to become due. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 113

 “Rent Schedule” means a written schedule for the Mortgaged Property showing the name of each
tenant, and for each tenant, the space occupied, the lease expiration date, the rent payable for the current month, the date through which rent has been paid, and any related information requested by Lender. 

“Repairs” means the repairs to be made to the Mortgaged Property, as described on the Repair Schedule of Work (Exhibit C) or as
otherwise required by Lender in accordance with this Loan Agreement. 
 “Replacement Cap Agreement” means any Cap Agreement satisfying the
provisions of this Loan Agreement, using documentation approved by Lender, and purchased by Borrower to replace any initial Cap Agreement or subsequent Cap Agreement. 

“Replacement Cost” means the estimated replacement cost of the Improvements, Fixtures, and Personalty (or, when used in reference to a
property that is not the Mortgaged Property, all improvements, fixtures, and personalty located on such property), excluding any deduction for depreciation, all as determined annually by Borrower using customary methodology and sources of
information acceptable to Lender in Lender’s Discretion. Replacement Cost will not include the cost to reconstruct foundations or site improvements, such as driveways, parking lots, sidewalks, and landscaping. 

“Reserve Fund” means each account established for Imposition Reserve Deposits, the Replacement Reserve Fund, the Repair Reserve Fund (if
any), the Rate Cap Agreement Reserve Fund (if any), the Rental Achievement Reserve Fund (if any), and any other account established pursuant to Article IV of this Loan Agreement. 

“Restoration” is defined in Section 6.10(j)(i). 

“Scheduled Debt Payments” is defined in Section 11.12(g)(i)(B). 

“Secondary Market Transaction” means: (i) any sale or assignment of this Loan Agreement, the Note and the other Loan Documents to one or
more investors as a whole loan, (ii) a participation of the Loan to one or more investors, (iii) any deposit of this Loan Agreement, the Note and the other Loan Documents with a trust or other entity which may sell certificates or other
instruments to investors evidencing an ownership interest in the assets of such trust or other entity, or (iv) any other sale, assignment or transfer of the Loan or any interest in the Loan to one or more investors. 

“Securitization” means when the Note or any portion of the Note is assigned to a REMIC or grantor trust. 

“Securitization Indemnification” is defined in Section 10.02(d). 

“Security Instrument” means the mortgage, deed of trust, deed to secure debt or other similar security instrument encumbering the Mortgaged
Property and securing Borrower’s performance of its Loan obligations, including Borrower’s obligations under the Note and this Loan 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 114

 
Agreement (including any Amended and Restated Security Instrument, Consolidation, Modification and Extension Agreement, Extension and Modification Agreement or similar agreement or instrument
amending and restating existing security instruments). 
 “Senior Indebtedness” means, for a Supplemental Loan, if any, the Indebtedness
evidenced by each Senior Note and secured by each Senior Instrument for the benefit of each Senior Lender. 
 “Senior Instrument” –
Not applicable. 
 “Senior Lender” means each holder of a Senior Note. 

“Senior Loan Documents” means, for a Supplemental Loan, if any, all documents relating to each loan evidenced by a Senior Note. 

“Senior Note” means, for a Supplemental Loan, if any, each Multifamily Note secured by a Senior Instrument. 

“Seniors Apartments” means age-restricted apartments for senior residents who are able to function independently. These residences are
typically restricted to residents 55 and older (or 62 and older). Seniors Apartments do not provide healthcare services, medication assistance, meal services or other third-party contract services. 

“Servicing Arrangement” is defined in Section 11.06(b). 

“Single Purpose Entity” is defined in Section 6.13(a). 

“Site Assessment” means an environmental assessment report for the Mortgaged Property prepared at Borrower’s expense by a qualified
environmental consultant engaged by Borrower, or by Lender on behalf of Borrower, and approved by Lender, and in a manner reasonably satisfactory to Lender, based upon an investigation relating to and making appropriate inquiries to evaluate the
risks associated with Mold and any existence of Hazardous Materials on or about the Mortgaged Property, and the past or present discharge, disposal, release or escape of any such substances, all consistent with the most current version of the ASTM
1527 standard (or any successor standard published by ASTM) and good customary and commercial practice. 
 “Skilled Nursing Beds” means a
portion of a property that provides licensed skilled nursing care and related services for patients who require medical, nursing or rehabilitative services, including Alzheimer’s care. 

“SPE Equity Owner” is not applicable. Borrower will not be required to maintain an SPE Equity Owner in its organizational structure during
the term of the Loan and all references to SPE Equity Owner in this Loan Agreement and in the Note will be of no force or effect. 
 “Successor
Borrower” is defined in Section 11.12(b). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 115

 “Supplemental Indebtedness” the Indebtedness evidenced by the Supplemental Note(s) and secured
by the Supplemental Instrument(s) for the benefit of Supplemental Lender(s), if any. 
 “Supplemental Instrument” means, for each
Supplemental Loan (whether one or more), if any, the Security Instrument executed to secure the Supplemental Note for the Supplemental Loan. 

“Supplemental Lender” means, for each Supplemental Loan (whether one or more), if any, the lender named in the Supplemental Instrument for
that Supplemental Loan and its successors and/or assigns. 
 “Supplemental Loan” means any loan that is subordinate to the Senior
Indebtedness. 
 “Supplemental Loan Documents” means, for each Supplemental Loan (whether one or more), if any, all documents relating to
the loan evidenced by the Supplemental Note for that Supplemental Loan. 
 “Supplemental Mortgage Product” is defined in Section 11.11(a).

 “Supplemental Note” means, for each Supplemental Loan (whether one or more), if any, the Multifamily Note secured by the Supplemental
Instrument for that Supplemental Loan. 
 “Tax Code” means the Internal Revenue Code of the United States, 26 U.S.C. Section 1 et
seq., as amended from time to time. 
 “Taxes” means all taxes, assessments, vault rentals and other charges, if any, whether general,
special or otherwise, including all assessments for schools, public betterments and general or local improvements, which are levied, assessed or imposed by any public authority or quasi-public authority, and which, if not paid, will become a Lien on
the Land or the Improvements. 
 “Third Party Provider Agreements” means any contract pursuant to which payments arising from operation of
or at the Facility are to be made by or pursuant to Governmental Payor Programs or private insurers. 
 “Total Insurable Value” means the
sum of the Replacement Cost, business income/rental value Insurance and the value of any business personal property. 
 “Transfer” means
any of the following: 
  

	 	(i)	A sale, assignment, transfer or other disposition or divestment of any interest in Borrower, a Designated Entity for Transfers, or the Mortgaged Property (whether voluntary, involuntary or by operation of law).

  

	 	(ii)	The granting, creating or attachment of a Lien, encumbrance or security interest (whether voluntary, involuntary or by operation of law). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 116

	 	(iii)	The issuance or other creation of an ownership interest in a legal entity, including a partnership interest, interest in a limited liability company or corporate stock. 

 

	 	(iv)	The withdrawal, retirement, removal or involuntary resignation of a partner in a partnership or a member or Manager in a limited liability company. 

 

	 	(v)	The merger, dissolution, liquidation, or consolidation of a legal entity or the reconstitution of one type of legal entity into another type of legal entity. 

 

	 	(vi)	A change of the Guarantor. 

 For purposes of defining the term “Transfer,” the term
“partnership” means a general partnership, a limited partnership, a joint venture, a limited liability partnership, or a limited liability limited partnership, and the term “partner” means a general partner, a limited partner, or
a joint venturer. 
 “Transfer” does not include any of the following: 
  

	 	(i)	A conveyance of the Mortgaged Property at a judicial or non-judicial foreclosure sale under the Security Instrument. 

  

	 	(ii)	The Mortgaged Property becoming part of a bankruptcy estate by operation of law under the Bankruptcy Code. 

  

	 	(iii)	The filing or recording of a Lien against the Mortgaged Property for local taxes and/or assessments not then due and payable. 

“Transfer and Assumption Agreement” is defined in Section 11.12(f)(iv). 

“Transfer Fee” means a fee paid when the Transfer is completed. Unless otherwise specified, the Transfer Fee will be equal to the lesser of
the following: 
  

	 	(i)	1% of the outstanding principal balance of the Indebtedness as of the date of the Transfer. 

  

	 	(ii)	$250,000. 

 “Transfer Processing Fee” means a nonrefundable fee of $15,000 for Lender’s
review of a proposed or completed Transfer. 
 “U.S. Treasury Obligations” means direct, non-callable and non-redeemable securities issued,
or fully insured as to payment, by the United States of America. 
 “UCC Collateral” is defined in Section 3.03. 

“Underwriter Group” is defined in Section 10.02(d). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 117

 “Uniform Commercial Code” means the Uniform Commercial Code as promulgated in the applicable
jurisdiction. 
 “Windstorm Coverage” is defined in Section 6.10(a)(iv). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 118

	ARTICLE XIII	INCORPORATION OF ATTACHED RIDERS. 

 The Riders listed on Page ii are attached to and incorporated into
this Loan Agreement. 
  

	ARTICLE XIV	INCORPORATION OF ATTACHED EXHIBITS. 

 The following Exhibits, if marked with an “X” in the
space provided, are attached to this Loan Agreement: 
  

					
	x	  	Exhibit A	  	Description of the Land (required)
			
	x	  	Exhibit B	  	Modifications to Multifamily Loan and Security Agreement
			
	x	  	Exhibit C	  	Repair Schedule of Work
			
	x	  	Exhibit D	  	Repair Disbursement Request (required)
			
	x	  	Exhibit E	  	Work Commenced at Mortgaged Property
			
	x	  	Exhibit F	  	Capital Replacements (required)
			
	x	  	Exhibit G	  	Description of Ground Lease
			
	x	  	Exhibit H	  	Organizational Chart of Borrower as of the Closing Date (required)
			
	x	  	Exhibit I	  	Designated Entities for Transfers and Guarantor(s) (required)
			
	x	  	Exhibit J	  	Description of Release Parcel
			
	x	  	Exhibit K	  	Licenses (required)
			
	x	  	Exhibit L	  	Furniture, Fixtures, Equipment, and Motor Vehicles (required)
			
	x	  	Exhibit M	  	Contracts (required)
			
	x	  	Exhibit N	  	Material Contracts (required)

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 119

					
	  
 x
	  	  
 Exhibit O
	  	  
 Borrower’s Certificate of Property Improvement Alterations
Completion (required)

			
	x	  	Exhibit P	  	Other Sponsor Loans

 REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURES ON FOLLOWING PAGES 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page 120

 
			
	BORROWER:
	
	SNR 27 ALEXIS GARDENS OWNER LLC, a Delaware limited liability company
		
	By:	 	 /s/ Justine Cheng

		 	Justine Cheng
		 	Authorized Person

 SIGNATURES CONTINUE ON FOLLOWING PAGE 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page S-1

 
			
	LENDER:
	
	WALKER & DUNLOP, LLC, a Delaware limited liability company
		
	By:	 	 /s/ Nancy Sexton

		 	Nancy Sexton
		 	Vice President

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page S-2

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

REPAIRS – NO REPAIR RESERVE ESTABLISHED 

(Revised 5-1-2015) 
 The following changes
are made to the Loan Agreement which precedes this Rider: 
  

	A.	Section 4.03 is deleted and replaced with the following: 

  

	 	4.03	Repairs – No Repair Reserve Fund Established. No Repair Reserve Fund has been established. Borrower must commence and complete the Repairs as required pursuant to Section 6.14. 

 

	 	(a)	Reporting Requirements; Completion. Prior to the applicable Completion Date, Borrower will deliver all of the following to Lender: 

 

	 	(i)	Contractor’s Certificate. If required by Lender, a certificate signed by each major contractor and supplier of materials, as reasonably determined by Lender, engaged to provide labor or materials for the
Repairs to the effect that such contractor or supplier has been paid in full for all work completed and that the portion of the Repairs provided by such contractor or supplier has been fully completed in accordance with the plans and specifications
(if any) provided to it by Borrower and that such portion of the Repairs is in compliance with all applicable building codes and other rules and regulations promulgated by any applicable regulatory authority or Governmental Authority.

  

	 	(ii)	Borrower’s Certificate. A certificate signed by Borrower to the effect that the Repairs have been fully paid for and no claim exists against Borrower or against the Mortgaged Property out of which a lien
based on furnishing labor or material exists or might ripen. Borrower may except from the certificate described in the preceding sentence any claim(s) that Borrower intends to contest, provided that any such claim is described in Borrower’s
certificate. If required by Lender, Borrower also must certify to Lender that the Repairs are in compliance with all applicable building codes and zoning ordinances. 

 

	 	(iii)	Engineer’s Certificate. If required by Lender, a certificate signed by the professional engineer employed by Lender to the effect that the Repairs have been completed in a good and workmanlike manner in
compliance with the Repair Schedule of Work and all applicable building codes, zoning ordinances and other rules and regulations promulgated by applicable regulatory or Governmental Authority. 

 

	 	(iv)	Other Certificates. Any other certificates of approval, acceptance or compliance required by Lender from any Governmental Authority having jurisdiction over the Mortgaged Property and the Repairs.

  

			
	Rider to Multifamily Loan and Security Agreement	  	Page 1
	Repairs – No Repair Reserve Established	  	

	 	(b)	Right to Complete Repairs. If Borrower abandons or fails to proceed diligently with the Repairs or otherwise, or there exists an Event of Default under this Loan Agreement, Lender will have the
right (but not the obligation) to enter upon the Mortgaged Property and take over and cause the completion of the Repairs. Any contracts entered into or indebtedness incurred upon the exercise of such right may be in the name of Borrower, and Lender
is irrevocably appointed the attorney in fact of Borrower, such appointment being coupled with an interest, to enter into such contracts, incur such obligations, enforce any contracts or agreements made by or on behalf of Borrower (including the
prosecution and defense of all actions and proceedings in connection with the Repairs and the payment, settlement, or compromise of all claims for materials and work performed in connection with the Repairs) and do any and all things necessary or
proper to complete the Repairs including signing Borrower’s name to any contracts and documents as may be deemed necessary by Lender. In no event will Lender be required to expend its own funds to complete the Repairs, but Lender may, in
Lender’s sole and absolute discretion, advance such funds. Any funds advanced will be added to the Indebtedness, secured by the Security Instrument and payable to Lender by Borrower in accordance with the provisions of the Loan Documents
pertaining to the protection of Lender’s security and advances made by Lender. 

  

	 	(c)	Completion of Repairs. Any acknowledgment by Lender of completion of any Repair in a manner satisfactory to Lender will not be deemed a certification by Lender that the Repair has been completed in accordance
with applicable building, zoning or other codes, ordinances, statutes, laws, regulations or requirements of any Governmental Authority. Borrower will at all times have the sole responsibility for insuring that all Repairs are completed in accordance
with all such governmental requirements. 

  

	 	(d)	Costs Charged by Lender. If Lender, in Lender’s Discretion, retains a professional inspection engineer or other qualified third party to inspect any Repairs pursuant to the terms of Section 6.06, Lender
may charge Borrower an amount sufficient to pay all reasonable costs and expenses charged by such third party inspector. Borrower will pay the amount of such item(s) to Lender immediately within five (5) Business
Days after Notice from Lender to Borrower of such charge(s). 

  

			
	Rider to Multifamily Loan and Security Agreement	  	Page 2
	Repairs – No Repair Reserve Established	  	

	B.	The following definitions are added to Article XII: 

 “Repair Schedule of Work”
means the Repair Schedule of Work attached as Exhibit C. 

  

			
	Rider to Multifamily Loan and Security Agreement	  	Page 3
	Repairs – No Repair Reserve Established	  	

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

REPLACEMENT RESERVE FUND – IMMEDIATE DEPOSITS 

(Revised 7-1-2014) 
 The following changes
are made to the Loan Agreement which precedes this Rider: 
  

	A.	Section 4.04 is deleted and replaced with the following: 

  

	 	4.04	Replacement Reserve Fund. 

  

	 	(a)	Deposits to Replacement Reserve Fund. On the Closing Date, the parties will establish the Replacement Reserve Fund and Borrower will pay the Initial Deposit to Lender for deposit into the Replacement Reserve
Fund. Commencing on the date the first installment of principal and/or interest is due under the Note and continuing on the same day of each successive month until the Loan is paid in full, Borrower will pay the Monthly Deposit to Lender for deposit
into the Replacement Reserve Fund, together with its regular monthly payments of principal and/or interest as required by the Note. A transfer of funds into the Replacement Reserve Fund from the Repair Reserve Fund, pursuant to the terms of
Section 4.03(e), if applicable, will not alter or reduce the amount of any deposits to the Replacement Reserve Fund. 

  

	 	(b)	Costs Charged by Lender. 

  

	 	(i)	If Lender, in Lender’s Discretion, retains a professional inspection engineer or other qualified third party to inspect any Capital Replacements pursuant to the terms of Section 6.06, Lender may charge
Borrower an amount sufficient to pay all reasonable costs and expenses charged by such third party inspector. 

  

	 	(ii)	If there are sufficient funds in Replacement Reserve Fund, Lender will be entitled, but not obligated, to deduct from the Replacement Reserve Fund the costs and expenses set forth in Section 4.04(b)(i). Lender will
be entitled to charge Borrower for such costs and expenses and Borrower will pay the amount of such item(s) to Lender immediately within five (5) Business Days after Notice from Lender to Borrower of such
charge(s). 

  

	 	(iii)	If there are insufficient funds in the Replacement Reserve Fund, then Lender will be entitled to charge Borrower for the costs and expenses specified in Section 4.04(b)(i), and Borrower will pay the amount of such
item(s) to Lender immediately within five (5) Business Days after Notice from Lender to Borrower of such charge(s). 

  

			
	Rider to Multifamily Loan and Security Agreement	  	Page 1
	Replacement Reserve Fund – Immediate Deposits	  	

	 	(c)	Adjustments to Replacement Reserve Fund. If the initial term of the Loan is greater than 120 months, then the following provisions will apply: 

 

	 	(i)	Lender reserves the right to adjust the amount of the Monthly Deposit based on Lender’s assessment of the physical condition of the Mortgaged Property, however, Lender will not make such an adjustment prior to the
date that is 120 months after the first installment due date, nor more frequently than every 10 years thereafter during the term of the Loan. 

  

	 	(ii)	Borrower will pay the cost of any assessment required by Lender pursuant to Section 4.04(c)(i) to Lender immediately after Notice from Lender to Borrower of such charge. 

 

	 	(iii)	Upon Notice from Lender or Loan Servicer, Borrower will begin paying the Revised Monthly Deposit on the first monthly payment date that is at least 30 days after the date of Lender’s or Loan Servicer’s
Notice. If Lender or Loan Servicer does not provide Borrower with Notice of a Revised Monthly Deposit, Borrower will continue to pay the Monthly Deposit or the Revised Monthly Deposit then in effect. 

 

	 	(d)	Insufficient Amount in Replacement Reserve Fund. If Borrower requests disbursement from the Replacement Reserve Fund for a Capital Replacement in accordance with this Loan Agreement in an amount which exceeds the
amount on deposit in the Replacement Reserve Fund, Lender will disburse to Borrower only the amount on deposit in the Replacement Reserve Fund. Borrower will pay all additional amounts required in connection with any such Capital Replacement from
Borrower’s own funds. 

  

	 	(e)	Reserved. 

  

	 	(f)	Reserved. 

  

	 	(g)	Disbursements from Replacement Reserve Fund. 

  

	 	(i)	Requests for Disbursement. Lender will disburse funds from the Replacement Reserve Fund as follows: 

  

	 	(A)	 Borrower’s Request. If Borrower determines, at any time or from time to time, that a Capital Replacement is necessary or desirable,
Borrower will perform such Capital Replacement and request from Lender, in writing, reimbursement for such Capital Replacement. Borrower’s 

  

			
	Rider to Multifamily Loan and Security Agreement	  	Page 2
	Replacement Reserve Fund – Immediate Deposits	  	

	 	
request for reimbursement will include (1) a detailed description of the Capital Replacement performed, together with evidence, satisfactory to Lender, that the cost of such Capital
Replacement has been paid, and (2) if required by Lender, lien waivers from each contractor and material supplier supplying labor or materials for such Capital Replacement. 

 

	 	(B)	Lender’s Request. If Lender reasonably determines at any time or from time to time, that a Capital Replacement is necessary for the proper maintenance of the Mortgaged Property, it will so notify Borrower,
in writing, requesting that Borrower obtain and submit to Lender bids for all labor and materials required in connection with such Capital Replacement. Borrower will submit such bids and a time schedule for completing each Capital Replacement to
Lender within 30 days after Borrower’s receipt of Lender’s Notice. Borrower will perform such Capital Replacement and request from Lender, in writing, reimbursement for such Capital Replacement. Borrower’s request for reimbursement
will include (1) a detailed description of the Capital Replacement performed, together with evidence, satisfactory to Lender, that the cost of such Capital Replacement has been paid, and (2) if required by Lender, lien waivers from each
contractor and material supplier supplying labor or materials for such Capital Replacement. 

  

	 	(ii)	Conditions Precedent. Disbursement from the Replacement Reserve Fund will be made no more frequently than once every Replacement Reserve Disbursement Period and, except for the final disbursement, no disbursement
will be made in an amount less than the Minimum Replacement Disbursement Request Amount. Disbursements will be made only if the following conditions precedent have been satisfied, as determined by Lender in Lender’s Discretion:

  

	 	(A)	Each Capital Replacement has been performed and/or installed on the Mortgaged Property in a good and workmanlike manner with suitable materials (or in the case of a partial disbursement, performed and/or installed on
the Mortgaged Property to an acceptable stage), in accordance with good  customary building practices and all applicable laws, ordinances, rules and regulations, building setback lines and restrictions applicable
to the Mortgaged Property, and has been paid for by Borrower as evidenced by copies of all applicable paid invoices or bills submitted to Lender by Borrower at the time Borrower requests disbursement from the Replacement Reserve Fund.

  

			
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	Replacement Reserve Fund – Immediate Deposits	  	

	 	(B)	There is no condition, event or act that would constitute a default (with or without Notice and/or lapse of time). 

  

	 	(C)	No Lien or claim based on furnishing labor or materials has been recorded, filed or asserted against the Mortgaged Property, unless Borrower has properly provided a bond or other security against loss in accordance with
applicable law. 

  

	 	(D)	All licenses, permits and approvals of any Governmental Authority required for the Capital Replacement as completed to the applicable stage have been obtained and submitted to Lender upon Lender’s request.

  

	 	(h)	Right to Complete Capital Replacements. If Borrower abandons or fails to proceed diligently with any Capital Replacement in a timely fashion or an Event of Default occurs and continues under this Loan
Agreement, in each case for 30 days after Notice of such failure condition or event by Lender to Borrower, Lender will have the right (but not the obligation) to enter upon the Mortgaged Property and take
over and cause the completion of such Capital Replacement. However, no such Notice or cure period will apply in the case of such failure which could, in Lender’s sole and absolute discretion, absent immediate exercise by Lender of a right or
remedy under this Loan Agreement, result in harm to Lender, tenants or third parties or impairment of the security given under this Loan Agreement, the Security Instrument or any other Loan Document. Any contracts entered into or indebtedness
incurred upon the exercise of such right may be in the name of Borrower, and Lender is irrevocably appointed the attorney in fact for Borrower, such appointment being coupled with an interest, to enter into such contracts, incur such obligations,
enforce any contracts or agreements made by or on behalf of Borrower (including the prosecution and defense of all actions and proceedings in connection with the Capital Replacement and the payment, settlement or compromise of all bills and claims
for materials and work performed in connection with the Capital Replacement) and do any and all things necessary or proper to complete any Capital Replacement, including signing Borrower’s name to any contracts and documents as may be deemed
necessary by Lender. In no event will Lender be required to expend its own funds to complete any Capital Replacement, but Lender may, in Lender’s Discretion, advance such funds. Any funds advanced will be added to the Indebtedness, secured by
the Security Instrument and payable to Lender by Borrower in accordance with the provisions of the Note, this Loan Agreement, the Security Instrument and any other Loan Document pertaining to the protection of Lender’s security and advances
made by Lender. 

  

			
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	Replacement Reserve Fund – Immediate Deposits	  	

	 	(i)	Completion of Capital Replacements. Lender’s disbursement of monies from the Replacement Reserve Fund or other acknowledgment of completion of any Capital Replacement in a manner satisfactory to Lender in
Lender’s Discretion will not be deemed a certification by Lender that the Capital Replacement has been completed in accordance with applicable building, zoning or other codes, ordinances, statutes, laws, regulations or requirements of any
Governmental Authority. Borrower will at all times have the sole responsibility for ensuring that all Capital Replacements are completed in accordance with all such requirements of any Governmental Authority. 

 

	 	(j)	Reserved. 

  

	 	(k)	Reserved. 

  

	B.	The following definitions are added to Article XII: 

 “Initial Deposit” means
$0.00. 
 “Minimum Replacement Disbursement Request Amount” means $5,000 

“Monthly Deposit” means $3,764.00. 

“Replacement Reserve Deposit” means the Initial Deposit, the Monthly Deposit and/or the Revised Monthly Deposit, as
appropriate. 
 “Replacement Reserve Disbursement Period” means the interval between disbursements from the Replacement
Reserve Fund, which interval will be no shorter than once a quarter. 
 “Replacement Reserve Fund” means the account
established pursuant to this Loan Agreement to defray the costs of Capital Replacements. 
 “Revised Monthly Deposit” means
the adjusted amount per month that Lender determines Borrower must deposit in the Replacement Reserve Fund following any adjustment determination by Lender pursuant to Section 4.04(c). 

  

			
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	Replacement Reserve Fund – Immediate Deposits	  	

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

COOPERATION WITH RATING AGENCIES AND INVESTORS 

(Revised 1-27-2015) 
  

	A.	Section 11.14 is deleted and replaced with the following: 

  

	 	11.14	Cooperation with Rating Agencies and Investors. At the request of Lender and, to the extent not already required to be provided by Borrower under this Loan Agreement, Borrower must use reasonable efforts to
satisfy the market standards to which Lender customarily adheres or which may be reasonably required in the marketplace or by the Rating Agencies in connection with any Securities secured by or evidencing ownership interests in the Note and this
Loan Agreement, including all of the following: 

  

	 	(a)	Borrower will provide financial and other information with respect to the Mortgaged Property, the Borrower and the Property Manager. 

 

	 	(b)	Borrower will perform or permit or cause to be performed or permitted such site inspections and other due diligence investigations of the Mortgaged Property, as may be requested by Lender in Lender’s Discretion or
may reasonably be requested by the Rating Agencies or as may be necessary or appropriate in connection with the Secondary Market Transaction. Lender will reimburse Borrower for any third party costs which Borrower reasonably incurs in connection
with any such due diligence investigation. 

  

	 	(c)	Borrower will make such representations and warranties as of the closing date of the Secondary Market Transaction with respect to the Mortgaged Property, Borrower and the Loan Documents as are customarily provided in
securitization transactions and as may be requested by Lender in Lender’s Discretion or may reasonably be requested by the Rating Agencies and consistent with the facts covered by such representations and warranties as they exist on the date of
this Loan Agreement, including the representations and warranties made in the Loan Documents, together, if customary, with appropriate verification of and/or consents to the Provided Information through letters of auditors or opinions of counsel of
independent attorneys acceptable to Lender and to the Rating Agencies. Lender will reimburse Borrower for any third party costs which Borrower reasonably incurs in connection with obtaining such auditors’ letters or opinions of counsel.

  

	 	(d)	Borrower will cause its counsel to render opinions, which may be relied upon by Lender, the Rating Agencies and their respective counsel, agents and representatives, as to nonconsolidation or any other opinion customary
in securitization transactions with respect to the Mortgaged Property and Borrower and its Affiliates, which counsel and opinions must be satisfactory to Lender in Lender’s Discretion and be reasonably satisfactory to the Rating Agencies.
Lender will reimburse Borrower for any third party costs which Borrower reasonably incurs in connection with obtaining such opinions of Borrower’s counsel. 

  

	 	(e)	Borrower will execute such amendments to the Loan Documents and organizational documents, establish and fund the Replacement Reserve Fund, if any, and complete any Repairs, if any, as may be requested by Lender or by
the Rating Agencies or otherwise to effect the Secondary Market Transaction; provided, however, that the Borrower will not be required to modify or amend any Loan Document if such modification or amendment would (i) change the interest rate,
the stated maturity or the amortization of principal set forth in the Note, or (ii) modify or amend any other material economic term of the Loan. 

  

			
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	Cooperation with Rating Agencies and Investors	  	

	B.	The following definitions are added to Article XII: 

 “Provided Information”
means the information provided by Borrower as required by Section 11.14 (a), (b) and (c). 
 “Securities” means
single or multi-class securities. 

  

			
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	Cooperation with Rating Agencies and Investors	  	

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

ENTITY GUARANTOR 

(Revised 3-1-2014) 
 The following changes
are made to the Loan Agreement which precedes this Rider: 
  

	A.	Section 9.01(dd) is deleted and replaced with the following: 

  

	 	(dd)	Guarantor fails to comply with the provisions of the Section of the Guaranty entitled “Material Adverse Change” or “Minimum Net Worth/Liquidity Requirements”, as applicable. 

  

			
	Rider to Multifamily Loan and Security Agreement	  	
	Entity Guarantor	  	

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

ADDITIONAL PROVISIONS – SALE OR SECURITIZATION OF LOAN 

(Revised 2-28-2015) 
 The following changes
are made to the Loan Agreement which precedes this Rider: 
  

	A.	Section 11.13 is deleted and replaced with the following: 

  

	 	11.13	Lender’s Rights to Sell or Securitize. Borrower acknowledges that Lender, and each successor to Lender’s interest, may (without prior Notice to Borrower or Borrower’s prior consent), sell or grant
participations in the Loan (or any part of the Loan), sell or subcontract the servicing rights related to the Loan, securitize the Loan or place the loan in a trust. Borrower agrees to cooperate with all reasonable requests of Lender in connection
with any of the foregoing including taking the following actions and causing Guarantor to take the actions specified in Sections 11.13(c) through (e): 

  

	 	(a)	Executing any financing statements or other documents deemed necessary by Lender or its transferee to create, perfect or preserve the rights and interest to be acquired by such transferee. 

 

	 	(b)	Delivering revised organizational documents and executed amendments to the Loan Documents satisfactory required by to the Rating Agencies (provided no such amendment shall revise any
economic terms of the Loan). 

  

	 	(c)	Providing updated Borrower and Guarantor financial information with appropriate verification through auditors’ letters for Borrower’s financial information, if required. (If Lender requires that
Borrower’s updated financial information be accompanied by appropriate verification through auditors’ letters, then Lender will reimburse Borrower for the costs which Borrower reasonably incurs in connection with obtaining such
auditors’ letters.). 

  

	 	(d)	Providing updated information on all litigation proceedings affecting Borrower or any Borrower Principal, any Facility Operator, or Property Manager, as to the extent required in
Section 6.16. 

  

	 	(e)	Reviewing all information that Lender may require for Lender’s Disclosure Documents, regarding any of the following: 

  

	 	(i)	Borrower. 

  

	 	(ii)	SPE Equity Owner. 

  

	 	(iii)	Guarantor. 

  

			
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	Additional Provisions – Sale or Securitization of Loan	  	

	 	(iv)	Affiliates of Borrower, SPE Equity Owner, or Guarantor. 

  

	 	(v)	Property Manager. 

  

	 	(vi)	Facility Operator. 

  

	 	(vii)	Mortgaged Property. 

  

	 	(f)	Providing a mortgagor estoppel regarding any information provided by Borrower, Borrower Principals, or Facility Operator in connection with the Loan, including the information specified in this Section.

  

	 	(g)	Entering into an indemnification agreement with Lender and any underwriters of any Securitization that includes the Loan confirming Borrower’s indemnification obligations under this Loan Agreement and with respect
to any additional information provided to Lender pursuant to this Section. 

  

			
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	Additional Provisions – Sale or Securitization of Loan	  	

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

MONTH TO MONTH LEASES 

(Revised 5-1-2015) 
 The following changes
are made to the Loan Agreement which precedes this Rider: 
  

	A.	Section 5.11(b) is deleted and replaced with the following: 

  

	 	(b)	They are for initial terms of at least 6 months and not more than 2 years (unless otherwise approved in writing by Lender). Lender agrees that not more than 100% of all Leases for residential dwelling units may be for
an initial term of less than 6 months, provided that such leases have an initial term of at least 1 month. 

  

	B.	Section 6.15(b)(ii) is deleted and replaced with the following: 

  

	 	(ii)	They will be for initial terms of at least 6 months and not more than 2 years (unless otherwise approved in writing by Lender). Lender agrees that not more than 100% of all Leases for residential dwelling units may be
for an initial term of less than 6 months, provided that such leases have an initial term of at least 1 month. 

  

			
	Rider to Multifamily Loan and Security Agreement	  	
	Month to Month Leases	  	

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

CROSS-COLLATERALIZED TRANSACTION 

(Revised 5-1-2015) 
 The following changes
are made to the Loan Agreement which precedes this Rider: 
  

	A.	Section 6.11(e) is deleted and replaced with the following: 

  

	 	(e)	Right to Apply Condemnation Proceeds in Connection with a Partial Release. Notwithstanding anything to the contrary set forth in this Loan Agreement, including this Section 6.11, for so long as the Loan or
any portion of the Loan is included in a Securitization in which the Note is assigned to a REMIC trust, then each of the following will apply: 

  

	 	(i)	If any portion of the Mortgaged Property and/or any Related Mortgaged Property is released from the Lien of the Loan in connection with a Condemnation and if the ratio of (A) the unpaid principal balance of the
Loan and any Related Loans (as defined in the Cross-Collateralization Agreement) to (B) the value of the Mortgaged Property and the Related Mortgaged Properties (with the value of the Mortgaged Property and the Related Mortgaged Properties
first being reduced by the outstanding principal balance of any Senior Indebtedness with respect to either the Mortgaged Property or the Related Mortgaged Properties and the outstanding principal balance of any indebtedness secured by the Mortgaged
Property or the Related Mortgaged Properties that is at the same level of priority with the Indebtedness and taking into account only the related land and buildings and not any personal property or going-concern value), as determined by Lender in
its sole and absolute discretion based on a commercially reasonable valuation method permitted in connection with a Securitization, is greater than 125% immediately after such Condemnation and before any Restoration or repair of the Mortgaged
Property (but taking into account any planned Restoration or repair of the Mortgaged Property as if such planned Restoration or repair were completed), then Lender will apply any net proceeds or awards from such Condemnation, in full, to the payment
of the principal of the Indebtedness and/or any other portion of the Total Indebtedness as determined by Lender and in accordance with applicable REMIC law whether or not then due and payable, unless Lender has received an opinion of counsel
(acceptable to Lender if such opinion is provided by Borrower) that a different application of the net proceeds or awards will not cause such Securitization to fail to meet applicable federal income tax qualification requirements or subject such
Securitization to any tax, and the net proceeds or awards are applied in the manner specified in such opinion. 

  

	 	(ii)	 If (A) neither Borrower nor Lender has the right to receive any or all net proceeds or awards as a result of the provisions of any agreement
affecting the Mortgaged Property (including any Ground Lease (if applicable), condominium document, or reciprocal easement agreement) and therefore cannot apply the net proceeds or awards to the payment of the principal of the Indebtedness as set
forth above, or (B) Borrower receives any or all of the proceeds or awards described in Section 6.11(e)(ii)(A) and fails to apply the proceeds in accordance with Section 6.11(e)(i), then Borrower will prepay the Indebtedness and/or
any other portion of the Total 

  

			
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	Cross-Collateralized Transaction	  	

	 	
Indebtedness (as determined by Lender and in accordance with applicable REMIC law) in an amount which Lender, in its sole and absolute discretion, deems necessary to ensure that the
Securitization will not fail to meet applicable federal income tax qualification requirements or be subject to any tax as a result of the Condemnation, unless Lender has received an opinion of counsel (acceptable to Lender if such opinion is
provided by Borrower) that a different application of the net proceeds or awards will not cause such Securitization to fail to meet applicable federal income tax qualification requirements or subject such Securitization to any tax, and the net
proceeds or awards are applied in the manner specified in such opinion. 

  

	B.	Section 6.13(a)(x)(D) is deleted and replaced with the following: 

  

	 	(D)	The Related Indebtedness under the Cross-Collateralization Agreement. 

  

	C.	Section 6.13(a)(xiv) is deleted and replaced with the following: 

  

	 	(xiv)	Except as required by the Cross-Collateralization Agreement and the other Loan Documents, it will not assume or guaranty (excluding any guaranty that has been executed and delivered in connection with the Note) the
debts or obligations of any other Person, hold itself out to be responsible for the debts of another Person, pledge its assets to secure the obligations of any other Person or otherwise pledge its assets for the benefit of any other Person, or hold
out its credit as being available to satisfy the obligations of any other Person. 

  

	D.	Section 9.01(cc) is deleted and replaced with the following: 

  

	 	(cc)	The occurrence of an “Event of Default” as defined in the Cross-Collateralization Agreement. 

  

	E.	Section 11.12(k) is deleted and replaced with the following: 

  

	 	(k)	The provisions of this Section 11.12 are subject to the provisions of Section 15 of the Cross-Collateralization Agreement. 

 

	F.	The following definitions are added to Article XII: 

 “Cross-Collateralization
Agreement” means the Master Cross-Collateralization Agreement dated as of the date of this Agreement by and among Borrower, Lender, and the Related Borrowers, as amended from time to time. 

“Related Borrowers” is defined in the Cross-Collateralization Agreement. 

“Related Indebtedness” is defined in the Cross-Collateralization Agreement. 

“Related Loan Agreements” is defined in the Cross-Collateralization Agreement. 

“Related Loan Documents” is defined in the Cross-Collateralization Agreement. 

“Related Loans” is defined in the Cross-Collateralization Agreement. 

“Related Mortgaged Properties” is defined in the Cross-Collateralization Agreement. 

  

			
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	Cross-Collateralized Transaction	  	

 “Related Security Instruments” is defined in the Cross-Collateralization
Agreement. 
 “Total Indebtedness” is defined in the Cross-Collateralization Agreement. 

  

			
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	Cross-Collateralized Transaction	  	

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

TRADE NAMES 
 (Revised
3-1-2014) 
 The following changes are made to the Loan Agreement which precedes this Rider: 

 

	A.	Section 6.30 is deleted and replaced with the following: 

  

	 	6.30	Lender’s Right To Use Trade Name. Notwithstanding anything contained in this Loan Agreement, Borrower agrees that Lender will have an irrevocable license, coupled with an interest and for which consideration
has been paid and received, to use the name “Alexis Gardens” and/or associated trademark rights and trade names relating to any of the Mortgaged Property for a period not to exceed 120 days after the date Lender acquires the
Mortgaged Property by foreclosure or deed-in-lieu of foreclosure. 

  

	B.	Section (xv) of the definition of “Mortgaged Property” in Article XII is modified to read as follows: 

  

	 	(xv)	All names under or by which any of the Mortgaged Property may be operated or known, and all trademarks, trade names and goodwill relating to any of the Mortgaged Property; provided however, that the name “Alexis
Gardens” and/or associated trademark rights are not assigned to Lender, subject to Section 6.30 of this Loan Agreement. 

  

			
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	Trade Names	  	

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

RECYCLED BORROWER – CONVERTED ENTITY 

(Revised 5-1-2015) 
 The following changes
are made to the Loan Agreement which precedes this Rider: 
  

	A.	Section 5.40 is replaced with the following: 

  

	 	5.40	Recycled Borrower – Converted Entity. 

  

	 	(a)	Underwriting Representations. Borrower represents that from the date of formation of Toledo Retirement Residence LLC, an Oregon limited liability company (“Original Entity”), each of the
following is true: 

  

					
	(i)	 	  (A)	 	Original Entity was converted from a Oregon limited liability company to a Delaware limited liability company as of August 6, 2015 (the “Conversion”).

  

	 	(B)	From the moment of its initial formation until the effective date of the Conversion, Original Entity was at all times duly formed, validly existing and in good standing in the state of its formation and in all other
jurisdictions where it was qualified to do business. 

  

	 	(C)	Borrower is, and from the effective date of its conversion to a Delaware limited liability company and always has been, duly formed, validly existing, and in good standing in
the state of Delaware and in all other jurisdictions where it is qualified to do business. 

  

	 	(ii)	Borrower is not now, nor has ever been, party to any lawsuit, arbitration, summons, or legal proceeding that is still pending or that resulted in a judgment against it that has not been paid in full, and there are no
liens of any nature against Borrower except for tax liens not yet due. 

  

	 	(iii)	Borrower is in compliance with all laws, regulations, and orders applicable to it and, except as otherwise disclosed in this Loan Agreement, has received all permits necessary for it to operate
Licenses. 

  

	 	(iv)	Borrower is not involved in any dispute with any taxing authority. 

  

	 	(v)	Borrower has paid all taxes which it owes. 

  

	 	(vi)	Borrower has never owned any real property other than the Mortgaged Property and personal property necessary or incidental to its ownership or operation of the Mortgaged Property and has never engaged in any business
other than the ownership and operation of the Mortgaged Property. 

  

			
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	Recycled Borrower – Converted Entity	  	

	 	(vii)	Borrower has provided Lender with complete financial statements that reflect a fair and accurate view of the entity’s financial condition. 

 

	 	(viii)	Borrower has obtained a current Phase I environmental Site Assessment for the Mortgaged Property and that Site Assessment has not identified any recognized environmental conditions that require further investigation or
remediation. 

  

	 	(ix)	Borrower has no material contingent or actual obligations not related to the Mortgaged Property except pursuant to the Cross-Collateralization Agreement. 

 

	 	(x)	Each amendment and restatement of Borrower’s organizational documents has been accomplished in accordance with, and was permitted by, the relevant provisions of said documents prior to its amendment or restatement
from time to time. 

  

	 	(b)	Separateness Representations. Borrower represents that from the date of formation of Original Entity, as of the date hereof, each of the following is true: 

 

	 	(i)	Borrower has not entered into any contract or agreement with any Related Party Affiliate, except upon terms and conditions that are commercially reasonable and substantially similar to those available in an
arm’s-length transaction with an unrelated party. 

  

	 	(ii)	Borrower has paid all of its debts and liabilities from its assets. 

  

	 	(iii)	Borrower has done or caused to be done all things necessary to observe all organizational formalities applicable to it and to preserve its existence. 

 

	 	(iv)	Borrower has maintained all of its books, records, financial statements and bank accounts separate from those of any other Person. 

  

	 	(v)	Borrower has not had its assets listed as assets on the financial statement of any other Person or entity; provided, however, that Borrower’s assets may have been included in a consolidated financial statement of
its Affiliate if each of the following conditions is met: 

  

	 	(A)	Appropriate notation was made on such consolidated financial statements to indicate the separateness of Borrower from such Affiliate and to indicate that Borrower’s assets and credit were not available to satisfy
the debts and other obligations of such Affiliate or any other Person. 

  

	 	(B)	Such assets were also listed on Borrower’s own separate balance sheet. 

  

	 	(vi)	Borrower has filed its own tax returns (except to the extent that it has been a tax-disregarded entity not required to file tax returns under applicable law) and, if it is a corporation, has not filed a consolidated
federal income tax return with any other Person. 

  

			
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	Recycled Borrower – Converted Entity	  	

	 	(vii)	Borrower has been, and at all times has held itself out to the public as, a legal entity separate and distinct from any other Person (including any Affiliate or other Related Party Affiliate). 

 

	 	(viii)	Borrower has corrected any known misunderstanding regarding its status as a separate entity. 

  

	 	(ix)	Borrower has conducted all of its business and held all of its assets in its own name. 

  

	 	(x)	Borrower has not identified itself or any of its affiliates as a division or part of the other. 

  

	 	(xi)	Borrower has maintained and utilized separate stationery, invoices and checks bearing its own name. 

  

	 	(xii)	Borrower has not commingled its assets with those of any other Person and has held all of its assets in its own name. 

  

	 	(xiii)	Borrower has not guaranteed or become obligated for the debts of any other Person, except for the following liabilities incurred by Original Entity: (A) mortgage debt being repaid in full with the proceeds of
the Loan; and (B) other liabilities incurred in the ordinary course of business relating solely to the ownership and operation of the Mortgaged Property, for which Borrower has set aside sufficient funds as of the date of this Certification to
satisfy these obligations within three (3) months of the date of this Certification which period is within the ordinary course for such payments. 

  

	 	(xiv)	Borrower has not held itself out as being responsible for the debts or obligations of any other Person. 

  

	 	(xv)	Borrower has allocated fairly and reasonably any overhead expenses that have been shared with an Affiliate, including paying for office space and services performed by any employee of an Affiliate or Related Party
Affiliate. 

  

	 	(xvi)	Borrower has not pledged its assets to secure the obligations of any other Person. 

  

	 	(xvii)	Borrower has maintained adequate capital in light of its contemplated business operations; provided, however, the aforementioned shall not be deemed to require any direct or indirect member of Borrower to
contribute additional capital to Borrower. 

  

	 	(xviii)	Borrower has maintained a sufficient number of employees in light of its contemplated business operations and has paid the salaries of its own employees from its own funds. 

  

			
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	Recycled Borrower – Converted Entity	  	

	 	(xix)	Borrower has not owned any subsidiary or any equity interest in any other entity. 

  

	 	(xx)	Borrower has not incurred any indebtedness that is still outstanding other than Indebtedness that is permitted under the Loan Documents. 

 

	 	(xxi)	Borrower has not had any of its obligations guaranteed by an Affiliate or other Related Party Affiliate, except for guarantees that have been either released or discharged (or that will be discharged as a result of the
closing of the Loan) or guarantees that are expressly contemplated by the Loan Documents. 

  

	 	(xxii)	None of the tenants holding leasehold interests with respect to the Mortgaged Property are an Affiliate of Borrower or other Related Party Affiliate. 

 

	 	(xxiii)	Borrower has done or caused to be done all things necessary to convert from an Oregon limited liability company to a Delaware limited liability company, in accordance with all applicable laws. 

 

	 	(c)	All references to “Borrower” in this Rider, other than in subparagraphs (a)(i)(C) and (b)(xxiii)above, shall mean both Original Entity and Borrower prior to the Conversion and as of the date hereof.

  

	B.	The following definition is added to Article XII: 

 “Related Party Affiliate”
means any of the Borrower’s Affiliates, constituents, or owners, or any guarantors of any of the Borrower’s obligations or any Affiliate of any of the foregoing. 

  

			
	Rider to Multifamily Loan and Security Agreement	  	Page 4
	Recycled Borrower – Converted Entity	  	

 EXHIBIT A 

DESCRIPTION OF THE LAND 
 Real property in the
City of Toledo, County of Lucas, State of Ohio, described as follows: 
 Parcel I (Parcel No. 24-00301): 

A parcel of land being part of the Southwest 1/4 of the Southeast 1/4 of Section 1, Town 9, South, Range 6 East, in the City of Toledo, Lucas County,
Ohio, said parcel of land being bounded and described as follows: 
 Commencing at the Southwest corner of the said Southeast 1/4 of Section 1; 

Thence in an Easterly direction along the South line of the said Southeast 1/4 of Section 1, having an assumed bearing of North 88o 16’
01” East, a distance of 683.28 feet to the intersection of the East line of the West 20.48 acres (so-called) of the Southwest 1/4 of the Southeast 1/4 of Section 1, said intersection being the true point of beginning; 

Thence North 00o 00’ 00” East along the said East line of the West 20.48 acres (so-called) of the Southwest 1/4 of the Southeast 1/4 of
Section 1, a distance of 220.61 feet to a point; 
 Thence South 56o 19’ 03” East along a line, a distance of 360.77 feet to a point;
said point being 200.00 feet Northwesterly of the centerline of Alexis Road as measured at right angles to the said centerline of Alexis Road; 
 Thence
South 22o 02’ 20” East along a line drawn at right angles to the said centerline of Alexis Road, a distance of 12.20 feet to the intersection of the said South line of the Southeast 1/4 of Section 1; 

Thence South 88o 16’ 01” West along the said South line of the Southeast 1/4 of Section 1, a distance of 304.92 feet to the true point of
beginning. 
 Parcel II (Parcel No. 24-01009): 
 A parcel
of land being a part of the Northwest 1/4 of the Northeast 1/4 of Section 12, Township 9 South, Range 6 East, in the City of Toledo, Lucas County, Ohio, and being more particularly described as follows: 

Commencing at an iron pin at the Northwest corner of the Northeast 1/4 of Section 12, Township 9 South, Range 6 East; 

Thence North 88o 16’ 47” East on the North line of the Northeast 1/4, a distance of 297.00 feet to an iron pipe, said iron pipe being the true
point of beginning of the parcel herein described; 
 Thence continuing North 88o 16’ 47” East on the North line of the Northeast 1/4, a
distance of 196.50 feet to an iron pipe; 
 Thence South 07o 34’ 59” East, a distance of 271.18 feet to an iron pipe on the Northerly
right-of-way line of Alexis Road; 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page A-1

 Thence continuing South 07o 34’ 59” East, a distance of 30.13 feet to a point on the centerline of
Alexis Road; 
 Thence South 77o 09’ 48” West on the centerline of Alexis Road, a distance of 105.50 feet to a brass plate; 

Thence South 79o 43’ 38” West and continuing on the centerline of Alexis Road, a distance of 117.26 feet to a point; 

Thence North 03o 02’ 37” West, a distance of 30.21 feet to a concrete monument found at the Southeast corner of Lot Number 1 of the Robertson
Addition; 
 Thence continuing North 03o 02’ 37” West on the East line of Lot Number 1 of Robertson Addition, a distance of 169.79 feet to a
concrete monument; 
 Thence continuing North 03o 02’ 37” West, a distance of 137.60 feet to the true point of beginning of the parcel herein
described. 
 Excepting therefrom that pat deeded to the City of Toledo, an Ohio Municipal Corporation, for road purposes by Official Record
20030701-0034410. 
 Parcel III (Parcel No. 24-01017): 

That part of the West 4.88 acres of that part of the Northwest 1/4 of the Northeast 1/4 of Section 12, Town 9 South, Range 6 East, in the City of Toledo,
Lucas County, Ohio, lying North of the center of Alexis Road and described as follows: 
 Beginning at the Northeast corner of said 4.88 acres; 

Thence South along the Easterly line of said 4.88 acres to the center of Alexis Road; 

Thence in a Westerly direction along the center line of Alexis Road, a distance of 120 feet; 

Thence in a Northerly direction to a point on the North line of said 4.88 acres, 145 feet West of the Northeast corner of said 4.88 acres; 

Thence East along the Northerly line of said 4.88 acres to the place of beginning. 

Excepting therefrom that part deeded to the City of Toledo, an Ohio Municipal Corporation, for road purposes by Official Record 20030701-0034410. 

Parcel IV (Parcel No. 24-01014): 
 Tract I: 

The East 2.7509 acres of that part of the Northwest 1/4 of the Northeast 1/4 of Section 12, Town 9 South, Range 6 East in the City of Toledo, Lucas
County, Ohio, lying Northerly of the centerline of Toledo and Sylvania Plank Road, so-called, less a parcel of land being part of the Northwest 1/4 of the Northeast 1/4 of Section 12, Town 9 South, Range 6 East, in City of Toledo, Lucas County,
Ohio, said parcel of land being bounded and described as follows: 
 Commencing at the Northwest corner of the said Northeast 1/4 of Section 12; 

  

			
	Rider To Multifamily Loan and Security Agreement	  	Page A-2

 Thence in an Easterly direction along the North line of the said Northeast 1/4 of Section 12, having an
assumed bearing of North 88o 16’ 47” East, a distance of 988.20 feet to the intersection of a line drawn at right angles to the centerline of Alexis Road, said intersection being the true point of beginning; 

Thence continuing North 88o 16’ 47” East along the said North line of the Northeast 1/4 of Section 12, a distance of 428.16 feet to the
intersection of the East line of the West 1/2 of the said Northeast 1/4 of Section 12; 
 Thence South 02o 33’ 04” East along the said
East line of the West 1/2 of the Northeast 1/4 of Section 12, a distance of 45.98 feet to the intersection of the said centerline of Alexis Road; 

Thence South 86o 25’ 25” West along the said centerline of Alexis Road, a distance of 13.82 feet to an angle point; 

Thence South 67o 57’ 40” West along the said centerline of Alexis Road, a distance of 373.10 feet to the intersection of said line drawn at
right angles to the centerline of Alexis Road; 
 Thence North 22o 02’ 20” West along said line drawn at right angles to the centerline of
Alexis Road, a distance of 187.56 feet to the true point of beginning. 
 Tract II: 

A parcel of land being part of the Northwest 1/4 of the Northeast 1/4 of Section 12, Town 9 South, Range 6 East, in the City of Toledo, Lucas County,
Ohio, said parcel of land being bounded and described as follows: 
 Commencing at the Northwest corner of the said Northeast 1/4 of Section 12; 

Thence in an Easterly direction along the North line of the said Northeast 1/4 of Section 12, having an assumed bearing of North 88o 16’
47” East, a distance of 638.50 feet to the intersection of the East line of the West 4.88 acres of the said Northwest 1/4 of the Northeast 1/4 of Section 12, lying North of the centerline of Alexis Road, said intersection being the true
point of beginning; 
 Thence continuing North 88o 16’ 47” East along the said North line of the Northeast 1/4 of Section 12, a distance
of 57.54 feet to the intersection of the West line of the East 2.7509 acres of the said Northwest 1/4 of the Northeast 1/4 of Section 12, lying North of the centerline of Alexis Road; 

Thence South 02o 33’ 04” East along the said West line of the East 2.7509 acres of the Northwest 1/4 of the Northeast 1/4 of Section 12
lying North of the centerline of Alexis Road, a distance of 264.87 feet to the intersection of the said centerline of Alexis Road; 
 Thence South 77o
09’ 48” West along the said centerline of Alexis Road, a distance of 61.00 feet to the intersection of the East line of the West 4.88 acres of the Northwest 1/4 of the Northeast 1/4 of Section 12 lying North of the centerline of
Alexis Road; 
 Thence North 02o 27’ 03” West along the said East line of the West 4.88 acres of the Northwest 1/4 of the Northeast 1/4 of
Section 12, lying North of the centerline of Alexis Road, a distance of 276.62 feet to the true point of beginning. 

  

			
	Rider To Multifamily Loan and Security Agreement	  	Page A-3

 Excepting therefrom that part deeded to the City of Toledo, an Ohio Municipal Corporation, for road purposes by
Official Record 20030701-0034410 and Excepting therefrom that part conveyed to The Board of County Commissioners of Lucas County, Ohio by deed recorded in Volume 1647 of Deeds, Page 323, Lucas County, Ohio Records. 

  

			
	Rider To Multifamily Loan and Security Agreement	  	Page A-4

 EXHIBIT B 

MODIFICATIONS TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

The following modifications are made to the text of the Loan Agreement that precedes this Exhibit. 

 

	A.	Sponsor Specific Modifications 

  

	1.	Section 2.06(a) is revised to read in its entirety as follows: 

  

	 	(a)	So long as there is no Event of Default exists, Lender or Loan Servicer will remit to Borrower each Cap Payment received by Lender or Loan
Servicer with respect to any month for which Borrower has paid in full the monthly installment of principal and interest or interest only, as applicable, due under the Note. Alternatively, at Lender’s option, so long as there is
no Event of Default exists, Lender may apply a Cap Payment received by Lender or Loan Servicer with respect to any month to the applicable monthly payment of accrued interest due
under the Note if Borrower has paid in full the remaining portion of such monthly payment of principal and interest or interest only, as applicable. 

  

	2.	Section 3.06(c) is revised to read in its entirety as follows: 

  

	 	(c)	Attorney-in-Fact. To the extent permitted by applicable law, Borrower irrevocably constitutes and appoints Lender as Borrower’s attorney-in-fact to
demand, receive and enforce Borrower’s rights with respect to the Licenses and to do any and all acts in Borrower’s name or in the name of Lender with the same force and effect as Borrower could do if this Loan Agreement had not been made.
This appointment will be deemed to be coupled with an interest and irrevocable. 

  

	3.	Section 4.02(e) is revised to read in its entirety as follows: 

  

	 	(e)	Deferral of Collection of Any Imposition Reserve Deposits; Delivery of Receipts. If Lender does not collect an Imposition Reserve Deposit with respect to an Imposition either marked “Deferred” in
Section 4.02(a) or pursuant to a separate written deferral by Lender, then on or before the earlier of the date each such Imposition is due, or the date this Loan Agreement requires each such Imposition to be paid
last day upon which such payment may be made without any penalty or fine being added, Borrower will provide Lender with proof of payment of each such Imposition. Upon Notice to
Borrower, Lender may revoke its deferral and require Borrower to deposit with Lender any or all of the Imposition Reserve Deposits listed in Section 4.02(a), regardless of whether any such item is marked “Deferred” (i) if
Borrower does not timely pay any of the Impositions, (ii) if Borrower fails to provide timely proof to Lender of such payment, (iii) at any time during the existence of an Event of Default or (iv) upon placement of a Supplemental Loan
in accordance with Section 11.11. 

  

	4.	Section 5.02 is revised to read in its entirety as follows: 

  

	 	5.02	Condition of Mortgaged Property. Except as Borrower may have disclosed to Lender in writing in connection with the issuance of the Commitment Letter, the Mortgaged Property has not been
materially damaged by fire, water, wind or other cause of loss, or any previous except to the extent such damage
to the Mortgaged Property has been fully restored. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-1

	5.	Section 5.03 is revised to read in its entirety as follows: 

  

	 	5.03	No Condemnation. No part of the Mortgaged Property has been taken in Condemnation or other like proceeding, and, to To the best of
Borrower’s knowledge after due inquiry and investigation, no such Condemnation proceeding is pending or threatened for the partial or total Condemnation or other
taking of the Mortgaged Property. 

  

	6.	Section 5.04(b) is revised to read in its entirety as follows: 

  

	 	(b)	Without limiting the generality of subsection (a) above, except as previously disclosed to Lender to Lender in writing, none of Borrower (and, if Borrower
is a limited partnership, any of its general partners or if Borrower is a limited liability company, any member of Borrower), any Facility Operator, or the Facility or, to Borrower’s
knowledge, Property Manager, are subject to any proceeding, suit or investigation by any Governmental Authority and neither Borrower nor any Facility Operator has received any notice from any Governmental Authority which may, directly or
indirectly, or with the passage of time, result in the imposition of a fine, or interim or final sanction, or would do any of the following: 

  

	 	(i)	Have a Material Adverse Effect. 

  

	 	(ii)	Result in the appointment of a receiver or trustee with respect to Borrower or the Mortgaged Property. 

 

	 	(iii)	Affect Borrower’s or any Facility Operator’s ability to accept and retain residents. 

  

	 	(iv)	Result in the Downgrade, revocation, transfer, surrender or suspension, or non-renewal or reissuance or other impairment of any License. 

 

	 	(v)	Affect Borrower’s or operator’s continued participation in any Governmental Payor Program, or any successor programs thereto, at current rate certifications. 

 

	7.	Section 5.05(e) is revised to read in its entirety as follows: 

  

	 	(e)	To the best of Borrower’s knowledge after due inquiry and investigation, except for matters that have been fully resolved, no event has occurred with
respect to the Mortgaged Property that constitutes, or with the passage of time or the giving of notice, or both, would constitute, noncompliance with the terms of any Environmental Permit. 

 

	8.	Section 5.05(g) is revised to read in its entirety as follows: 

  

	 	(g)	Except for matters that have been fully resolved, Borrower has received no actual or constructive notice of any written complaint, order, notice of violation
or other communication from any Governmental Authority with regard to air emissions, water discharges, noise emissions or Hazardous Materials, or any other environmental, health or safety matters affecting the Mortgaged Property or any property that
is adjacent to the Mortgaged Property. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-2

	9.	The last paragraph of Section 5.06 is revised to read in its entirety as follows: 

Borrower represents and warrants as of the date hereof that all parties furnishing
labor and materials for which a Lien or claim of Lien may be filed against the Mortgaged Property have been paid in full for all amounts due and, except for such Liens or claims insured
against by the policy of title insurance to be issued in connection with the Loan, there are no mechanics’, laborers’ or materialmen’s Liens or claims outstanding for work, labor or materials affecting the Mortgaged Property, whether
prior to, equal with or subordinate to the Lien of the Security Instrument. 
  

	10.	The lead-in paragraph of Section 5.07 is revised to read in its entirety as follows: 

  

	 	5.07	Compliance with Applicable Laws and Regulations. Except as disclosed to Lender in writing: 

 

	11.	The lead-in paragraph of Section 5.07(a) is revised to read in its entirety as follows: 

  

	 	(a)	To the best of Borrower’s knowledge after due inquiry and investigation, each of the following is true: 

  

	12.	The lead-in paragraph of Section 5.07(b) is revised to read in its entirety as follows: 

  

	 	(b)	Without limiting the generality of subsection (a) above, to the best of Borrower’s knowledge, Borrower, any Facility Operator, and the Facility (and
its operation) and all residential care agreements and residential Leases in effect as of the date hereof are in compliance with the applicable provisions of all laws, regulations,
ordinances, orders or standards of any Governmental Authority having jurisdiction over the operation of the Facility (including any Governmental Payor Program requirements and disclosure of ownership and related information requirements), including:

  

	13.	Section 5.07(c) is revised to read in its entirety as follows: 

  

	 	(c)	Borrower has received no written notice of, and is not aware of, any violation of applicable antitrust laws or securities laws relating to the Facility,
Borrower, or any Facility Operator or any Property Manager. 

  

	14.	Section 5.08 is revised to read in its entirety as follows: 

  

	 	5.08	Access; Utilities; Tax Parcels. The Except as otherwise disclosed in the title policy issued to and accepted by Lender on the Closing Date,
the Mortgaged Property: (a) has ingress and egress via a publicly dedicated right of way or via an irrevocable easement permitting ingress and egress, (b) is served by public utilities and services generally available
in the surrounding community or otherwise appropriate for the use in which the Mortgaged Property is currently being utilized, and (c) constitutes one or more separate tax parcels. 

 

	15.	Section 5.09 is revised to read in its entirety as follows: 

  

	 	5.09	Licenses and Permits. 

  

	 	(a)	 Borrower, Facility Operator and/or, to Borrower’s knowledge after due inquiry and
investigation, any Property Manager and any commercial tenant of the Mortgaged Property, any Facility Operator, and or any  

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-3

	 	
Property Manager is in possession of all material licenses, permits and authorizations required for use of the Mortgaged Property,
which and such licenses, permits and authorizations are valid and in full force and effect as of the date of this Loan Agreement. 

 

	 	(b)	Without limiting the generality of subsection (a) above, Borrower has obtained or has caused any Facility Operator or Property Manager to obtain all
Licenses necessary to use, occupy or operate the Facility for its Intended Use (such Licenses being in its own name or in the name of a Facility Operator, if any or Property
Manager, as applicable, and in any event in the names of the Persons required by the applicable Governmental Authorities), and all such Licenses are in full force and effect. Borrower has provided Lender with complete and accurate copies of all
material Licenses. The Intended Use of the Facility is in conformity compliance with all certificates of
occupancy and Licenses and any other restrictions or covenants affecting the Facility. The Facility has all equipment, staff and supplies necessary to use and operate the Facility for its Intended Use. 

 

	 	(c)	Borrower or any Facility Operator or, to Borrower’s knowledge after due inquiry and investigation, Property Manager, has timely filed or has caused to be
timely filed all reports and other information that the Licenses require to be filed. 

  

	 	(d)	Each License, and the name of the Person in whose name each License is issued, is identified on Exhibit K, and a true and complete copy of each License is attached as Exhibit K. 

 

	 	(e)	As of the Closing date, the Licenses attached as Exhibit K are current and Borrower has not been subject to or received written notice of any pending inquiry,
audit, investigation demand or violation that have not been brought to Lender’s attention in writing. 

  

	 	(f)	Except as previously disclosed to Lender in writing, Borrower is not aware of any deficiencies, actions or inactions that, in the aggregate, could result in a
suspension, Downgrade, revocation, termination, restriction, or conditioning of any License. 

  

	 	(g)	There has been no previous assignment or encumbrance of the material Licenses except assignments of encumbrances terminate prior to Borrower entering into this
Loan Agreement or collateral assignments or encumbrances terminated by any Facility Operator prior to Borrower entering into this Loan Agreement. 

  

	 	(h)	Except as set forth on Exhibit K, other than the Licenses attached as Exhibit K, as of the Closing Date, no other Licenses are required to operate the Facility as it is currently being operated and for its Intended Use.

  

	 	(i)	Neither the execution and delivery of the Note, this Loan Agreement, the Security Instrument nor any other Loan Document, Borrower’s performance under the Loan Documents, nor the recordation of the Security
Instrument, nor the exercise of any remedies by Lender pursuant to the Loan Documents, at law or in equity, will adversely affect the Licenses. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-4

	16.	Section 5.10 is revised to read in its entirety as follows: 

  

	 	5.10	No Other Interests. To the best of Borrower’s knowledge after due inquiry and investigation, no Person has (a) any possessory interest in the Mortgaged Property or right to occupy the Mortgaged Property
except under and pursuant to (i) any operating Lease with Facility Operator, (ii) the provisions of existing Leases by and between tenants and Borrower (a form of
residential lease having been previously provided to Lender together with or any Facility Operator (on the standard forms customarily used at the Facility) and (iii) any tenant
pursuant to any existing Non-Residential Lease (the material terms of any and all Non-Residential Leases at the Mortgaged Property having been previously provided to Lender), or
(b) an option to purchase the Mortgaged Property or an interest in the Mortgaged Property, except as has been disclosed to and approved in writing by Lender. 

 

	17.	Section 5.11(a) is revised to read as follows: 

  

	 	(a)	They are on forms disclosed to Lender that are customary for similar senior housing facilities in the Property Jurisdiction. 

 

	18.	Section 5.14 is revised to read in its entirety as follows: 

  

	 	5.14	Taxes Paid. Borrower has filed all federal, state, county and municipal tax returns required to have been filed by Borrower, and has paid all Taxes which have become due pursuant to such returns or to any notice
of assessment received by Borrower, and Borrower has no knowledge of any basis for additional assessment with respect to such taxes. To the best of Borrower’s knowledge after due inquiry and investigation,
except as disclosed in the title policy issued to and accepted by Lender on the Closing Date, there are not presently pending any special assessments against the Mortgaged Property or any
part of the Mortgaged Property. 

  

	19.	Section 5.16(a) is revised to read in its entirety as follows: 

  

	 	(a)	All To the best of Borrower’s knowledge after due inquiry and investigation, all information in the application for the Loan submitted to
Lender, including all financial statements for the Mortgaged Property, Borrower, and any Borrower Principal, and all Rent Schedules, reports, certificates, and any other documents submitted in connection with the application
(collectively, “Loan Application”) is complete and accurate correct in all material respects as of the date such information
Loan Application was submitted to Lender. (provided (i) Borrower represents to Lender as of the date
hereof only that any information provided in any report, Rent Schedule or other document delivered by Borrower in connection with the Loan Application is complete and correct in all material respects as of the date indicated in such report, Rent
Schedule or other document, as applicable, and (ii) any projections and pro forma financial information are excepted from the representations set forth in this Section 5.16(a), Lender acknowledging that such projections and financial
information are based upon good faith estimates and assumptions believed by management of Borrower, any Borrower Principal and/or the Guarantor to be reasonable at the time made and it being recognized by the Lender that such financial information
as it relates to future events is not to be viewed as fact and that actual results during the period or periods covered by such projections and financial information may differ from the projected results set forth therein by a material amount.

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-5

	20.	Section 5.17 is revised to read in its entirety as follows: 

  

	 	5.17	Financial Statements. The financial statements of Borrower and each Borrower Principal furnished to Lender as part of the Loan Application reflect in each case a positive net worth
based on fair market values as of the date of the applicable financial statement. 

  

	21.	Section 5.18 is revised to read in its entirety as follows: 

  

	 	5.18	ERISA – Borrower Status. Borrower represents as follows: 

  

	 	(a)	Borrower is not an a registered “investment company,” or a company under the Control of
an a registered “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended. 

 

	22.	Section 5.21 is revised to read in its entirety as follows: 

  

	 	5.21	Working Capital. After the Loan is made, subject to the requirements of Section 6.13(a)(xx),Borrower
and/or Facility Operator intends to have sufficient working capital, including cash flow from the Mortgaged Property or other sources, not only to adequately maintain the Mortgaged
Property, but also to pay all of Borrower’s and Facility Operator’s outstanding debts as they come due (other than any balloon payment due upon the maturity of the Loan). Lender
acknowledges that no members or partners of Borrower or any Borrower Principal or Facility Operator will be obligated to contribute equity
or make funds available to Borrower or Facility Operator for purposes of providing working capital to maintain the
Mortgaged Property or to pay Borrower’s outstanding debts except as may otherwise be required under their organizational documents. 

 

	23.	Section 5.24 is revised to read in its entirety as follows: 

  

	 	5.24	Purpose of Loan. The purpose of the Loan is as indicated by the checked boxes below: 

  

	 	 ̈	Refinance Loan: The Loan is a refinancing of existing indebtedness and, except to the extent specifically required by Lender, there is to be no change in the ownership of either the Mortgaged Property or Borrower
Principals. The intended use of any cash received by Borrower from Lender, to the extent applicable, in connection with the refinancing has been fully disclosed to Lender. 

 

	 	x	Acquisition Loan: All of the consideration given or received or to be given or received in connection with the acquisition of the Mortgaged Property has been fully disclosed to Lender. The Mortgaged Property was
or will be purchased from Toledo Retirement Residence LLC (“Property Seller”). No Borrower or Borrower Principal has or had, directly or indirectly (through a family member or otherwise), any interest in the Property Seller and the
acquisition of the Mortgaged Property is an arm’s-length transaction. To the best of Borrower’s knowledge after due inquiry and investigation, the purchase price of the Mortgaged Property represents the fair market value of the Mortgaged
Property and Property Seller is not or will not be insolvent subsequent to the sale of the Mortgaged Property. 

  

	 	 ̈	 Supplemental Loan: The Loan is a Supplemental Loan and, except to the extent specifically required or approved by Lender, there has been no

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-6

	 	
change in the ownership of either the Mortgaged Property or Borrower Principals since the date of the Senior Note. The intended use of any cash received by Borrower from Lender, to the extent
applicable, in connection with the refinancing has been fully disclosed to Lender. 

  

	 	x	Cross-Collateralized/Cross-Defaulted Loan Pool: The Loan is part of a cross-collateralized/cross-defaulted pool of loans described as follows: 

 

			
	  X  	  	being simultaneously made to Borrower and/or Borrower’s Affiliates
		
	        	  	made previously to Borrower and/or Borrower’s Affiliates

 The intended use of any cash received by Borrower from Lender, to the extent applicable, in connection
with the Loan and the other loans comprising the cross-collateralized/cross-defaulted loan pool has been fully disclosed to Lender. 
  

	24.	The lead-in to Section 5.25(a) is revised to read in its entirety as follows: 

  

	 	(a)	The Subject to the modifications permitted by subsection (b) below, the residential units in the Facility are allocated as follows
(“Intended Use”): 

  

	25.	Section 5.25(b) is revised to read in its entirety as follows: 

  

	 	(b)	The number of units set aside asat the Facility as of the date hereof shall not be increased by more than 10%, and shall not be decreased by more
than 3%, during the term of the Loan. The units in the Facility may be transitioned to a higher acuity so long as the total number of Independent Living Units transitioned to Assisted Living Residences and Independent Living Units may be
decreased by no more than 10% of the present number of total units in the Facility.or Assisted Living Residences devoted to memory care (collectively, “AL Units”) does not
represent a change of more than 25% of the total units in the Facility, based on the Intended Use acuity mix as of the date of this Loan Agreement. The Independent Living Units in the Facility transitioned to a higher acuity as provided above, if
any, may be transitioned back to Independent Living Units. The number of units set aside as Assisted Living Residences and Independent Living Units may be increased by no more than 25% of the present number of total units in the
Facility; provided, however, that in the case of Independent Living Units, the percentage of Independent Living Units cannot exceed 50% of the total number of units in the Facility. 

 

	26.	Section 5.27 is revised to read in its entirety as follows: 

  

	 	5.27	Participant in Federal Programs. Neither Borrower nor any Facility Operator or any Property Manager is a participant in any federal program under which
any Governmental Authority may have the right to recover funds by reason of the advance of federal funds. 

  

	27.	Section 5.28 is deleted and replaced as follows: 

  

	 	5.28	[Intentionally Deleted] 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-7

	28.	Section 5.29 is revised to read in its entirety as follows: 

  

	 	5.29	Contracts. 

  

	 	(a)	Exhibit M lists all Contracts in effect as of the date of this Loan Agreement involving aggregate payments in excess of $50,000 per year, the names of
the parties to such Contracts and the dates of such Contracts. 

  

	 	(b)	With regard to each Contract listed in Exhibit M, to the best of Borrower’s knowledge after due inquiry and investigation, (i) the Contract is
in full force and effect in accordance with its terms, and (ii) there is no default by any party under the Contract. 

  

	 	(c)	Borrower has delivered to Lender a copy of each Contract in excess of $50,000 per year, together with all amendments, modifications, supplements and renewals
thereto in effect as of the date of this Loan Agreement. 

  

	 	(d)	Except as set forth on Exhibit M, each Contract listed in Exhibit M provides that it is terminable by Borrower or any Facility Operator or any
Property Manager upon not more than 30 days’ notice without the necessity of establishing cause and without payment of a penalty or termination fee by Borrower or any Facility
Operator or their respective successors or assigns, except only Third Party Provider Agreements and National Contracts. 

 

	29.	Section 5.30 is revised to read in its entirety as follows: 

  

	 	5.30	Material Contracts. 

  

	 	(a)	Exhibit N lists all Material Contracts in effect as of the date of this Loan Agreement. 

  

	 	(b)	With regard to each Material Contract listed in Exhibit N:, except as set forth on Exhibit N, (i) the Material Contract is
assignable by Borrower, or if Borrower is not a party thereto, or by a Facility Operator, without the consent of the other party thereto (or Borrower and
or any Facility Operator, as applicable, has obtained express written consent to the assignment from the other party thereto), except only Third Party Provider
Agreements and National Contracts; (ii) no previous assignment of Borrower’s or any Facility Operator’s interest in the Material Contract has been made except such
assignments that have been properly terminated prior to or concurrently with the execution and delivery of this Loan Agreement; (iii) the Material Contract is in full force and effect in accordance with its terms; and
(iv) to the best of Borrower’s knowledge after due inquiry and investigation, there is no default by any party under the Material Contract. 

 

	 	(c)	Borrower has delivered to Lender a copy of each Material Contract, together with all amendments, modifications, supplements and renewals thereto in effect as of the date of this Loan Agreement. 

 

	 	(d)	Each Material Contract listed in Except as set forth on Exhibit N, each
Material Contract provides that it is terminable upon not more than 30 days’ notice without the necessity of establishing cause and without payment of a penalty or termination fee
by Borrower or any Facility Operator or their respective successors or assigns, except only Third Party Provider Agreements. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-8

	30.	Section 5.32 is revised to read in its entirety as follows: 

  

	 	5.32	Medicare and Medicaid. If Borrower or any Facility Operator or Property Manager participates in any Governmental Payor Program in connection with the operation of the Facility, all of the following are true:

  

	 	(a)	The Facility is in compliance in all material respects with the requirements for participation in the Governmental Payor Program, including without limitation, the Medicare and Medicaid Patient Protection Act of 1987.

  

	 	(b)	The Facility conforms in all material respects to all insurance, reimbursement and cost reporting requirements, and has a current provider agreement under Title XVIII and/or XIX of the Social Security Act or any other
applicable laws for reimbursement necessary for its Intended Use. 

  

	 	(c)	There Except as disclosed to Lender, there is no action pending
or, to the best of Borrower’s knowledge after due inquiry and investigation, threatened to terminate the Facility’s participation in the Governmental Payor Program nor is
there has Borrower or any Facility Operator received written notice of any decision not to renew any provider agreement related to the Facility, nor is there any action pending or
threatened to impose material intermediate or alternative sanctions with respect to the Facility. 

  

	 	(d)	All Governmental Payor Program and private insurance cost reports and financial reports submitted by Borrower, any Facility Operator, or any Property Manager for the Facility are and will be materially
accurate and complete and have not been and will not be are not misleading in any material respects
respect. 

  

	 	(e)	No cost reports for the Facility remain “open” or unsettled, except as otherwise disclosed in writing to Lender. 

  

	 	(f)	TheExcept as disclosed in writing to Lender, (i) the Facility has not received a “Level A” (or equivalent) violation,
and(ii) no statement of charges or deficiencies has been made or penalty enforcement action has been undertaken against the Facility, any Property Manager or Facility
Operator or the Borrower (or any officer, director or stockholder of any of the foregoing) during the last 3 calendar years, and (iii) there have been no violations over the past 3
calendar years which have threatened any certification of the Facility, any Property Manager or Facility Operator or the Borrower for participation in any Governmental Payor Program. 

 

	 	(g)	There are no resident care agreements with residents of the Facility or with any other Persons which deviate in any material respect from the standard forms
disclosed to Lender and customarily used at a comparable first-class facility the Facility or
which conflict with any statutory or regulatory requirements. 

  

	 	(h)	All resident records at the Facility, including any resident trust fund accounts, are true and correct in all material respects. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-9

	 	(i)	Except as disclosed to Lender, (i) Borrower and the Facility are not subject to any proceeding, suit, or investigation by any Governmental
Authority. None and (ii) none of the Borrower, any Property Manager, or any Facility Operator has received any notice from any Governmental Authority which has not
been provided for on the financial statements provided to Lender and which may result in the imposition of a fine or interim or final sanction or which would result in a lower reimbursement rate for services rendered to eligible residents.

  

	 	(j)	The execution and delivery of the Note, this Loan Agreement, the Security Instrument, or any other Loan Document, Borrower’s performance under the Loan Documents,
and the recordation of the Security Instrument, and the exercise of any remedies by Lender, will not do any of the following: 

 

	 	(i)	Adversely affect the right by Borrower, a Facility Operator, or the Facility to receive Governmental Payor Program payments and reimbursements with respect to the Facility. 

 

	 	(ii)	Materially reduce the Governmental Payor Program payments and reimbursements which Borrower or a Facility Operator is receiving as of the date of this Loan Agreement. 

 

	 	(iii)	Adversely affect any of the Licenses. 

  

	 	(k)	If any existing management agreement or operating lease is terminated or Lender acquires the Facility through foreclosure or otherwise, none of the Borrower, Lender, any subsequent management agent, any
subsequent operator of the Facility, or any subsequent purchaser (through foreclosure or otherwise) will be required to obtain a certificate of need from any Governmental Authority (other than giving of any notice required under the applicable state
law or regulation) prior to receiving certification to receive Governmental Payor Program payments (or any successor programs) for residents having coverage under any Governmental Payor Program so long as neither the type of service nor any unit
complement is changed. 

  

	31.	Section 5.33 is revised to read in its entirety as follows: 

  

	 	5.33	Third-Party Payor Programs and Private Commercial Insurance Managed Care and Employee Assistance Programs. There Except as disclosed to
Lender, to the best of Borrower’s knowledge after due inquiry and investigation, there is no threatened or pending revocation, suspension, termination, probation, restriction, limitation or nonrenewal affecting Borrower or Facility
Operator or Property Manager, of any participation or provider agreement with any Governmental Payor Program or any private commercial insurance managed care or employee assistance program
to which Borrower or Facility Operator or Property Manager is subject. All Governmental Payor Program and private insurance cost reports and financial reports submitted by Borrower or
Facility Operator or Property Manager are and will be materially accurate and complete and have not been and will not be misleading in any
in all material respects. No cost reports for the Facility remain “open” or unsettled, except as otherwise
disclosed in writing to Lender. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-10

	32.	Section 5.34 is revised to read in its entirety as follows: 

  

	 	5.34	No Transfer or Pledge of Licenses. The Licenses, including the certificate of need, may not be, and have not been, transferred to any location other than the Facility, have not
been pledged as collateral security for any other loan or indebtedness, and are held free from restrictions or known conflicts that would materially impair the use or operation of the Facility for its Intended Use, and are not provisional,
probationary, or restricted in any way. 

  

	33.	Section 5.36 is revised to read in its entirety as follows: 

  

	 	5.36	Patient and Resident Care Agreements. To the best of Borrower’s knowledge after due inquiry and investigation, there There are no
patient or resident care agreements with patients or residents or with any other persons that deviate in any material adverse respect from the standard forms disclosed to
Lender and customarily used at the Facility. 

  

	34.	Section 5.38(a) is revised to read in its entirety as follows: 

  

	 	(a)	TheExcept as disclosed to Lender or except for issues which are fully corrected or for which a plan of correction is in place or has been approved
by the applicable Governmental Authority, (i) the Facility has not received a statement of charges or deficiencies and no penalty enforcement actions have been undertaken against the Facility, the Facility Operator or Borrower or against
any officer, director or stockholder thereof, by any Governmental Authority during the last three calendar years, and (ii) there have been no violations over the past three years that
have threatened the Facility’s or the Facility Operator’s or Borrower’s certification for participation in any Governmental Payor Program. 

  

	35.	Section 6.01 is revised to read in its entirety as follows: 

  

	 	6.01	Compliance with Laws. Borrower will comply with all laws, ordinances, rules, regulations and requirements of any Governmental Authority having jurisdiction over the Mortgaged Property and all licenses and permits
and all recorded covenants and agreements relating to or affecting the Mortgaged Property, including all laws, ordinances, regulations, requirements and covenants pertaining to health and safety, construction of improvements on the Mortgaged
Property, Repairs, Capital Replacements, fair housing, disability accommodation, zoning and land use, applicable building codes, special use permits and environmental regulations, Leases and the maintenance and disposition of tenant security
deposits. Borrower will take appropriate measures to prevent, and will not engage in or knowingly permit, any illegal activities at the Mortgaged Property, including those that could endanger tenants or visitors, result in damage to the Mortgaged
Property, result in forfeiture of the Mortgaged Property, or otherwise materially impair the Lien created by the Security Instrument or Lender’s interest in the Mortgaged Property. Borrower will at all times maintain
customary business records sufficient to demonstrate related to such compliance with the provisions of
this Section 6.01. 

  

	36.	Section 6.02 is revised to read in its entirety as follows: 

  

	 	6.02	 Compliance with Organizational Documents. Borrower will at all times
comply, in all material respects, with all laws, regulations and requirements of any Governmental Authority relating to Borrower’s formation, continued existence and good
standing in its state of formation and, if different, in the 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-11

	 	
Property Jurisdiction. Borrower will at all times comply, in all material respects, with its organizational documents,
including its partnership agreement (if Borrower is a partnership), its by-laws (if Borrower is a corporation or housing cooperative corporation or association) or its operating agreement (if Borrower is a limited liability company or
tenancy-in-common). If Borrower is a housing cooperative corporation or association, Borrower will at all times maintain its status as a “cooperative housing corporation” as such term is defined in Section 216(b) of the Internal
Revenue Code of 1986, as amended, or any successor statute thereto. 

  

	37.	Section 6.03(a)(i) is revised to read in its entirety as follows: 

  

	 	(i)	Except as otherwise permitted by this Loan Agreement, allow changes in the use for which all or any part of the Mortgaged Property is being used at the time
this Loan Agreement is executed. 

  

	38.	Section 6.04(a) is revised to read in its entirety as follows: 

  

	 	(a)	Prohibited New Non-Residential Leases or Modified Non-Residential Leases. Borrower will not enter into any New Non-Residential Lease, enter into any Modified Non-Residential Lease or terminate any Non-Residential
Lease (including any Non-Residential Lease in existence on the date of this Loan Agreement) without the prior written consent of Lender.; provided that Lender’s prior
consent shall not be required for the execution, modification or termination of any Non–Residential Lease if such Non-Residential Lease is (i) of any non-residential space that was non-residential space on the date hereof and for a use
relating or ancillary to, or otherwise consistent with, the Intended Use, (ii) for space of less than 2,500 square feet or the annual consideration of which is not greater than $50,000 (upon execution and following any such modification, as
applicable), (iii) with a tenant that is not an Affiliate of Borrower and (iv) on market terms. 

  

	39.	Section 6.04(c) is revised to read in its entirety as follows: 

  

	 	(c)	Executed Copies of Non-Residential Leases. Borrower will, without request by Lender, deliver a fully executed copy of each Non-Residential Lease to
Lender, promptly after such Non-Residential Lease is signed, a fully executed copy of any Non-Residential Lease for which
Lender’s consent is required. 

  

	40.	The lead-in paragraph to Section 6.04(d) is revised to read in its entirety as follows: 

  

	 	(d)	Subordination and Attornment Requirements. All Non-Residential Leases executed after the date hereof will specifically include the following provisions:

  

	41.	Section 6.06(a) is revised to read in its entirety as follows: 

  

	 	(a)	 Right of Entry. Borrower will permit Lender, its agents, representatives and designees and any interested Governmental Authority to make or
cause to be made entries upon and inspections of the Mortgaged Property to inspect, among other things: (i) Repairs, (ii) Capital Replacements, (iv) Restorations, (iv) Property Improvement Alterations, and (v) any other
Improvements, both in process and upon completion (including environmental inspections and tests performed by professional inspection engineers) during normal business hours, or at any other reasonable time, upon reasonable Notice to Borrower
if the inspection is to include occupied residential units (which Notice need not be in 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-12

	 	
writing). During normal business hours, or at any other reasonable time, Borrower will also permit Lender to examine all books and records and contracts and bills pertaining to the foregoing.
Notice to Borrower will not be required in the case of an emergency, as determined in Lender’s Discretion, or when an Event of Default has occurred and is continuing. Except as otherwise
set forth in this Loan Agreement, Lender shall be responsible for the cost of any inspection unless such inspection is conducted during the existence of an Event of Default. 

 

	42.	Section 6.07(a) is revised to read in its entirety as follows: 

  

	 	(a)	Delivery of Books and Records. Borrower will keep and maintain at all times at the Mortgaged Property or the Property Manager’s or Facility Operator’s office, and upon Lender’s
reasonable request will make available at the Mortgaged Property (or, at Borrower’s option, at the Property Manager’s or Facility Operator’s office), complete and
accurate books of account and records (including copies of supporting bills and invoices) adequate to reflect correctly the operation of the Mortgaged Property, in accordance with GAAP consistently applied (or such other method
which is reasonably acceptable to Lender), and copies of all written contracts, Leases, and other instruments which affect the Mortgaged Property. The books, records, contracts, Leases and other instruments will be subject to examination and
inspection by Lender at any reasonable time, provided Lender shall be responsible for the cost of Lender’s, not to include third party examiners, examination or inspection, excepting
(i) one examination or inspection during any 12 month period, which shall be paid by Borrower, or (2) any such examination or inspection is conducted during the existence of an Event of Default, which shall be paid by Borrower.

  

	43.	The lead-in paragraph of Section 6.07(b) is revised to read in its entirety as follows: 

  

	 	(b)	Delivery of Statement of Income and Expenses; Rent Schedule and Other Statements. Borrower will furnish (or will cause to be furnished) to Lender each
of the following: 

  

	44.	The lead-in paragraph of Section 6.07(b)(i)(B) is revised to read in its entirety as follows: 

  

	 	(B)	A statement of income and expenses for Borrower’s the operation of the Mortgaged Property that is either of the following:

  

	45.	A new Section 6.07(b)(iv) is added as follows: 

  

	 	(iv)	Within 120 days after the end of each fiscal quarter of Borrower, Borrower will deliver or cause Property Manager or the Facility Operator to deliver to Lender
information in sufficient detail, as reasonably determined by Lender, to show by patient mix (i.e., private and Governmental Payor Program, if applicable) the average monthly census of the Facility, occupancy rates and the amount of income
attributed to reimbursements or payments from a Governmental Payor Program. 

  

	46.	Section 6.07(c) is revised to read in its entirety as follows: 

  

	 	(c)	Delivery of Borrower Financial Statements Upon Request. Borrower will furnish to Lender each of the following: 

  

	 	(i)	 Upon Lender’s request, in Lender’s sole and absolute discretion prior to a Securitization, and thereafter upon Lender’s request in
Lender’s 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-13

	 	
Discretion, a monthly Rent Schedule and a monthly statement of income and expenses for Borrower’s operation of the Mortgaged Property, in each case within 25 days after the end of each
month prior to a Securitization and within 35 days after the end of each month following a Securitization. 

 

	 	(ii)	Upon Lender’s request in Lender’s sole and absolute discretion prior to a Securitization, and thereafter upon Lender’s request in Lender’s Discretion, a statement that identifies all
direct owners of any interest in Borrower and any Designated Entity for Transfers and the interest held by each (unless Borrower or any Designated Entity for Transfers is a publicly-traded
entity in which case such statement of ownership will not be required), and if Borrower or a Designated Entity for Transfers is a corporation then all officers and directors of Borrower and the Designated Entity for Transfers, and if Borrower or a
Designated Entity for Transfers is a limited liability company then all Managers who are not members, in each case within 10 days Business Days after such request.

  

	 	(iii)	Upon Lender’s request in Lender’s Discretion, such other financial information or property management information (including information on tenants under Leases to the extent such information is available to
Borrower, copies of bank account statements from financial institutions where funds owned or controlled by Borrower are maintained, and an accounting of security deposits) as may be required by Lender from time to time, in each case within 30 days
after such request. 

  

	 	(iv)	Upon Lender’s request in Lender’s Discretion, a monthly property management report for the Mortgaged Property, showing the number of inquiries made and rental applications received from tenants or prospective
tenants and deposits received from tenants and any other information reasonably requested by Lender within 30 days after such request. However, Lender will not require the foregoing more
frequently than quarterly except when there has been an Event of Default and such Event of Default is continuing, in which case Lender may require Borrower to furnish the foregoing more frequently. 

 

	47.	Section 6.07(d) is revised to read in its entirety as follows: 

 (d) Form of Statements;
Audited Financials. A natural person having authority to bind Borrower (or the SPE Equity Owner or Guarantor, as applicable) will certify each of the statements, schedules and reports required by Sections 6.07(b), 6.07(c) and 6.07(f) to be
complete and accurate. Each of the statements, schedules and reports required by Sections 6.07(b), 6.07(c) and 6.07(f) will be in such form and contain such detail as Lender may reasonably require. Lender also may require that any of the statements,
schedules or reports listed in Sections 6.07(b), 6.07(c) and 6.07(f) be audited at Borrower’s expense by independent certified public accountants acceptable to Lender, at any time when an Event of Default has occurred and is continuing or at
any time that Lender, in its reasonable judgment, determines that audited financial statements are required for an accurate assessment of the financial condition of Borrower or of the Mortgaged Property, not to exceed once per year. 

 

	48.	Section 6.07(e) is revised to read in its entirety as follows: 

 (e) Failure to Timely
Provide Financial Statements. If Borrower fails to provide in a timely manner the statements, schedules and reports required by Sections 6.07(b), 6.07(c) and 6.07(f), Lender will give Notice to Borrower specifying the statements, schedules

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-14

 
and reports required by Sections 6.07(b), 6.07(c) and 6.07(f) that Borrower has failed to provide. If Borrower has not provided the required statements, schedules and reports within 10 Business
Days following such Notice, then (i) Borrower will pay a late fee of $500 for each late statement, schedule or report, plus an additional $500 per month that any such statement, schedule or report continues to be late, and (ii) if such
failure continues for a period that is 30 days after receipt by Borrower from Lender of Notice of said failure, Lender will have the right to have Borrower’s books and records audited, at Borrower’s expense, by independent certified
public accountants selected by Lender in order to obtain such statements, schedules and reports, and all related costs and expenses of Lender will become immediately due, and payable within 5 Business Days of Lender’s demand and
will become an additional part of the Indebtedness as provided in Section 9.02. Notice to Borrower of Lender’s exercise of its rights to require an audit will not be required in the case of an emergency, as determined in Lender’s
Discretion, or when an Event of Default has occurred and is continuing. 
  

	49.	Section 6.07(f) is revised to read in its entirety as follows: 

  

	 	(f)	Delivery of Guarantor and SPE Equity Owner Financial Statements Upon Request. Borrower will cause each Guarantor and, at Lender’s request in Lender’s Discretion, any SPE Equity Owner, to provide to
Lender (i) within 90 days after the close of such party’s fiscal year, such party’s balance sheet and profit and loss statement (or if such party is a natural person, within 90 days after the close of each
calendar year, such party’s personal financial statements) in form reasonably satisfactory to Lender and certified by such party to be accurate and complete, and (ii) such additional financial information (including copies of state and
federal tax returns with respect to any SPE Equity Owner but Lender will only require copies of such tax returns with respect to each Guarantor if an Event of Default has occurred and is continuing) publicly available financial information
as Lender may reasonably require from time to time and in such detail as reasonably required by Lender. 

  

	50.	Section 6.08 is revised to read in its entirety as follows: 

  

	 	6.08	Taxes; Operating Expenses; Ground Rents. 

  

	 	(a)	Payment of Taxes and Ground Rent. Subject to the provisions of Sections 6.08(c) and (d), Borrower will pay or cause to be paid (i) all Taxes when due and before the addition of any interest,
fine, penalty or cost for nonpayment, and (ii) if Borrower’s interest in the Mortgaged Property is as a Ground Lessee, then the monthly or other periodic installments of Ground Rent before the last date upon which each such installment may
be made without penalty or interest charges being added. 

  

	 	(b)	Payment of Operating Expenses. Subject to the provisions of Section 6.08(c), Borrower will (i) pay or cause to be paid the expenses of
operating, managing, maintaining and repairing the Mortgaged Property (including utilities, Repairs and Capital Replacements) before the last date upon which each such payment may be made without any penalty or interest charge being added, and
(ii) pay Insurance premiums at least 30 days prior to the expiration date of each policy of Insurance (provided such premiums
shall not be required to be paid more than 5 days prior to the expiration date of each policy of Insurance containing a mortgagee clause and lender loss payable endorsement in accordance with the requirements of
Section 6.10(f)(viii)), unless applicable law specifies some lesser period. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-15

	 	(c)	Payment of Impositions and Reserve Funds. If Lender is collecting Imposition Reserve Deposits pursuant to Article IV, then so long as no Event of Default exists, Borrower will not be obligated to pay any
Imposition for which Imposition Reserve Deposits are being collected (or any penalties or late payments relating thereto), whether Taxes, Insurance premiums, Ground Rent (if applicable) or
any other individual Impositions, but only to the extent that sufficient Imposition Reserve Deposits are held by Lender for the purpose of paying that specific Imposition and Borrower has timely delivered to Lender any bills or premium notices that
it has received with respect to that specific Imposition (other than Ground Rent). Lender will have no liability to Borrower for failing to pay any Impositions to the extent that: (i) any Event of Default has occurred and is continuing,
(ii) insufficient Imposition Reserve Deposits are held by Lender at the time an Imposition becomes due and payable, or (iii) Borrower has failed to provide Lender with bills and premium notices as provided in this Section.

  

	 	(d)	Right to Contest. Borrower, at its own expense, may contest by appropriate legal proceedings, conducted diligently and in good faith, the amount or validity of any Imposition other than Insurance premiums and
Ground Rent (if applicable), if: (i) Borrower notifies Lender of the commencement or expected commencement of such proceedings, (ii) the Mortgaged Property is not in danger of being sold or forfeited, (iii) if Borrower has not already
paid the Imposition, Borrower deposits with Lender reserves sufficient to pay the contested Imposition, if requested by Lender, and (iv) Borrower furnishes whatever additional security is required in the proceedings or is reasonably requested
by Lender, which may include the delivery to Lender of reserves established by Borrower to pay the contested Imposition. 

  

	51.	Section 6.09(a) is revised to read in its entirety as follows: 

  

	 	(a)	Maintenance of Mortgaged Property; No Waste. Borrower will keep the Mortgaged Property in good repair, (including the replacement of Personalty and Fixtures with items of equal or better
function and quality), ordinary wear and tear and casualty excepted. Borrower will not commit waste or permit impairment or deterioration of the Mortgaged Property. 

 

	52.	Section 6.09(c) is revised to read in its entirety as follows: 

  

	 	(c)	Preservation of Mortgaged Property. Borrower will restore or repair promptly, in a good and workmanlike manner, any damaged part of the Mortgaged Property to the equivalent of its original
condition or better, or such other condition as Lender may approve in writing, whether or not Insurance proceeds or Condemnation awards are available to cover any costs of such Restoration
or repair; provided, however, that Borrower will not be obligated to perform such Restoration or repair if (i) no Event of Default has occurred and is continuing, and (ii) Lender has elected to apply any available Insurance proceeds and/or
Condemnation awards to the payment of Indebtedness pursuant to Section 6.10(l) or Section 6.11(d). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-16

	53.	Section 6.09(d) is revised to read in its entirety as follows: 

  

	 	(d)	Property Management. Borrower or Facility Operator will provide for professional management of the Mortgaged Property by the Property Manager at all
times under a property management agreement approved by Lender in writing or in a form substantially similar to the forms of property management agreement existing on the Closing Date which
such property management agreements have been approved by Lender as of the date hereof (each, an “Approved Property Management Agreement”). Borrower will not, and will cause
Primary Property Manager not to, surrender, terminate, cancel, modify, renew or extend (except in each case by its terms) its Approved Property Management Agreement, or enter into any
other agreement relating to the management or operation of the Mortgaged Property with Property Manager or any other Person (other than an Approved Property Management
Agreement), or consent to the assignment by the Property Manager of its interest under such property management agreement, in each case without the consent of Lender, which consent will not be unreasonably
withheld.in Lender’s Discretion, provided, that Lender’s consent shall not be required with respect to (i) an assignment of the Approved Property Management Agreement to
or (ii) the entering into of a new Approved Property Management Agreement (and the termination, surrender and cancellation of the existing Approved Property Management Agreement in connection therewith) with (x) a property manager
previously approved by Freddie Mac in connection with a Seniors Housing mortgage loan to which Guarantor or Guarantor’s Affiliate is a party and which loan was purchased by Freddie Mac, provided that the same property manager continues in that
capacity at such property at the time it becomes the replacement Property Manager pursuant to this section; (y) any manager that is managing any other Related Mortgaged Property; or (z) an Affiliate of the Property Manager. Notwithstanding
anything to the contrary in this Loan Agreement or any Loan Document, Borrower or Primary Property Manager shall be entitled to make immaterial modifications to and renewals of the Approved Property Management Agreement without Lender’s
consent. For the avoidance of doubt, any reference in this Section 6.09(d) to a “property management agreement” will be deemed to include any agreement between a primary manager and a sub-manager. 

 

	 	(i)	If at any time Lender consents to the appointment of a new Property Manager is appointed, or the Approved Property Management Agreement is
assigned, in accordance with the terms of this Section 6.09(d), such new Property Manager and Borrower (or Facility Operator) will, as a condition of Lender’s consent, execute
an Assignment of Management Agreement in a form acceptable to Lender substantially similar to the form of Assignment of Management Agreement delivered on the Closing Date.

  

	 	(ii)	If any such replacement Property Manager is an Affiliate of Borrower, and if a nonconsolidation opinion was delivered on the Closing Date, Borrower will deliver to Lender an updated nonconsolidation opinion in form and
substance substantially similar to the form delivered on the Closing Date. 

  

	 	(iii)	Reserved. 

  

	54.	Section 6.09(e)(iv) is revised to read in its entirety as follows: 

  

	 	(iv)	Repairs or Capital Replacements repairs or capital improvements in connection with making an individual unit ready for a new occupant or
pursuant to Sections 6.09(a) and (c). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-17

	55.	Section 6.09(e)(v)(C) is revised to read in its entirety as follows: 

  

	 	(C)	Neither the performance nor completion of the Property Improvement Alterations may result in any of the following: 

  

	 	(1)	An adverse effect on any Major Building System. 

  

	 	(2)	Except as permitted by Section 5.25(b), a A change in residential dwelling unit configurations on a permanent basis. 

 

	 	(3)	An aggregate increase of more than 10% or decrease
of more than 3% in the total number of residential dwelling units in accordance with Section 5.25(b). 

 

	 	(4)	Except in connection with any unit conversion pursuant to Section 5.25(b), the  The demolition of any existing
Improvements. 

  

	 	(5)	A permanent obstruction of tenants’ access to units or a temporary obstruction of tenants’ access to units without a reasonable alternative access provided during the period of renovation which causes the
obstruction. 

  

	56.	Section 6.09(e)(v)(H) is revised to read in its entirety as follows: 

  

	 	(H)	Borrower must deliver to Lender within 10 days Business Days of Lender’s request a written status update on the Property Improvement
Alterations. 

  

	57.	A new Section 6.10(f)(viii) is added as follows: 

  

	 	(viii)	All policies of Insurance will contain a standard mortgagee clause and lender’s loss payable provision, including a provision that the policy remains in full
force and effect as to the interests of the Lender for a period of 10 days after its expiration, provided the policy has not been renewed or replaced. 

  

	58.	Section 6.10(g) is revised to read in its entirety as follows: 

  

	 	(g)	Evidence of Insurance; Insurance Policy Renewals. Borrower will deliver to Lender a legible copy of each Insurance policy, and Borrower will promptly deliver to Lender a copy of all renewal and other notices
received by Borrower with respect to the policies. Borrower will ensure that the Mortgaged Property is continuously covered by the required Insurance. At least 15 days prior
Prior to the expiration date of each Insurance policy, Borrower will deliver to Lender evidence acceptable to Lender in Lender’s Discretion that each policy has been renewed. If the
evidence of a renewal does not include a legible copy of the renewal policy, Borrower will deliver a legible copy of such renewal no later than the earlier of the following: 

 

	 	(i)	60 days after the expiration date of the original policy. 

  

	 	(ii)	The date of any Notice of an insured loss given to Lender under Section 6.10(i). 

  

			
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	59.	Section 6.10(i) is revised to read in its entirety as follows: 

  

	 	(i)	Obligations Upon Casualty; Proof of Loss. 

  

	 	(i)	If an insured loss occurs, then Borrower will give immediate prompt written notice to the Insurance carrier and to Lender. 

 

	60.	Section 6.10(k)(i) is revised to read in its entirety as follows: 

  

	 	(i)	If a casualty results in damage to the Mortgaged Property for which the cost of Repairs will be equal to or less than the Borrower Proof of Loss Threshold,
Borrower will have the sole right to make proof of loss, adjust and compromise the claim and collect and receive any proceeds directly without the approval or prior consent of Lender so long as the Insurance proceeds are used solely for the
Restoration of the Mortgaged Property. 

  

	61.	Section 6.10(l)(iii) is revised to read in its entirety as follows: 

  

	 	(iii)	The rental income from the Mortgaged Property 6 months after completion of the Restoration will not be sufficient to meet all operating costs and other
expenses, deposits to Reserve Funds and Loan repayment obligations relating to the Mortgaged Property. 

  

	62.	A new Section 6.10(q) is added as follows: 

  

	 	(q)	Insurance Generally. Notwithstanding anything to the contrary contained in this Section 6.10, if Insurance required hereunder is not available at commercially
reasonable rates and if the related coverages are not at the time commonly insured against for properties similar to the Mortgaged Property and located in or around the region in which the Mortgaged Property is located, then Lender may opt to
temporarily suspend, cap or otherwise limit the requirement to have such Insurance for a period not to exceed one year, unless such suspension or cap will be renewed by Lender for such additional one year increments. 

 

	63.	Section 6.11(b) is revised to read in its entirety as follows: 

  

	 	(b)	Application of Award. Lender may hold such awards or proceeds and apply such awards or proceeds, after the deduction of Lender’s out of pocket
expenses incurred in the collection of such amounts (including Attorneys’ Fees and Costs) at Lender’s option, to the Restoration or repair of the Mortgaged Property or to the payment of the Indebtedness, with the balance, if any, to
Borrower. Unless Lender otherwise agrees in writing, any application of any awards or proceeds to the Indebtedness will not extend or postpone the due date of any monthly installments referred to in the Note or Article IV of this Loan Agreement, or
change the amount of such installments. Borrower agrees to execute such further evidence of assignment of any Condemnation awards or proceeds as Lender may require. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-19

	64.	Section 6.11(c) is revised to read in its entirety as follows: 

  

	 	(c)	Borrower’s Right to Condemnation Proceeds. Notwithstanding any provision to the contrary in this Section 6.11, but subject to Section 6.11(e), in the event of a partial Condemnation of the
Mortgaged Property, as long as no Event of Default, or any event which, with the giving of Notice or the passage of time, or both, would constitute an Event of Default, has occurred and is continuing, in the event of a partial
Condemnation resulting in proceeds or awards in the amount of less than $100,000500,000, Borrower will have the sole right to make proof of loss, adjust and compromise the
claim and collect and receive any proceeds directly without the approval or prior consent of Lender so long as the proceeds or awards are used solely for the Restoration of the Mortgaged Property. 

 

	65.	The lead-in paragraph of Section 6.11(d) is revised to read in its entirety as follows: 

  

	 	(d)	Right to Apply Condemnation Proceeds to Indebtedness. In the event of a partial Condemnation of the Mortgaged Property resulting in proceeds or awards in the amount of
$100,000500,000 or more and subject to Section 6.11(e), Lender will have the right to exercise its option to apply Condemnation proceeds to the payment of the
Indebtedness only if Lender, in Lender’s Discretion, determines that at least one of the following conditions is met: 

  

	66.	Section 6.11(d)(iii) is revised to read in its entirety as follows: 

  

	 	(iii)	The rental income from the Mortgaged Property 6 months after completion of the Restoration will not be sufficient to meet all operating costs and other
expenses, deposits to Reserve Funds and Loan repayment obligations relating to the Mortgaged Property. 

  

	67.	Section 6.12(d)(iii) is hereby renumbered as Section 6.12(d)(iv). 

  

	68.	A new Section 6.12(d)(iii) is added as follows: 

  

	 	(iii)	Borrower’s knowledge of any Mold which poses, or has been alleged to pose, a material threat to
human health at any Mortgage Facility and which Borrower has not remediated within 30 days of such knowledge. 

  

	69.	Section 6.13(a)(v) is revised to read in its entirety as follows: 

  

	 	(v)	It will not take any action to dissolve, wind up, terminate or liquidate in whole or in part; to sell, transfer or otherwise dispose of all or substantially all of its assets; to change its legal
structure; transfer or permit the direct or indirect transfer of any partnership, membership or other equity interests, as applicable, other than Transfers permitted under this Loan Agreement; issue additional partnership, membership or
other equity interests, as applicable, or seek to accomplish any of the foregoing. 

  

	70.	Section 6.13(a)(vi)(H) is revised to read in its entirety as follows: 

  

	 	(H)	Admit in writing to any Person other than Lender and Loan Servicer Borrower’s or any SPE Equity Owner’s inability to pay its debts generally as they become due. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-20

	71.	Reserved. 

  

	72.	Section 6.13(a)(ix) is amended to read in its entirety as follows: 

  

	 	(ix)	It will not commingle its assets with the assets of any other Person and will hold all of its assets in its own name, except as permitted with the Other Sponsor Borrowers, with whom assets may be held in one bank
account for up to 30 days after the Closing Date, provided that the assets of Borrower are separately identifiable to the assets of the Other Sponsor Borrowers. In the 30 days after the Closing Date, funds in the single bank account will not be
pledged to any Person. 

  

	73.	Section 6.13(a)(x)(B) is revised to read in its entirety as follows: 

  

	 	(B)	Customary unsecured trade payables incurred in the ordinary course of owning and operating the Mortgaged Property provided the same are not evidenced by a promissory note, do not exceed, in the aggregate, at any time a
maximum amount of 2the greater of 3% of the original principal amount of the Indebtedness and $300,000, and are
paid within 60 days of the date incurred or when due, if later. 

  

	74.	Section 6.13(a)(xi) is amended to read in its entirety as follows: 

  

	 	(xi)	It will maintain its records, books of account, bank accounts, financial statements, accounting records and other entity documents separate and apart from those of any other Person and will not list its assets as assets
on the financial statement of any other Person, except as provided in subsection (ix) above; provided, however, that Borrower’s assets may be included in a consolidated financial statement of its Affiliate provided that
(A) appropriate notation will be made on such consolidated financial statements to indicate the separateness of Borrower from such Affiliate and to indicate that Borrower’s assets and credit are not available to satisfy the debts and other
obligations of such Affiliate or any other Person except as provided by the Cross-Collateralization Agreement, and (B) such assets will also be listed on Borrower’s own separate balance sheet. 

 

	75.	Reserved. 

  

	76.	Reserved. 

  

	77.	Section 6.13(a)(xviii) is revised to read in its entirety as follows: 

  

	 	(xviii)	It will maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations and will pay its debts and liabilities
from its own assets as the same become due; provided however, the aforementioned shall not be deemed to require any direct or indirect investor of the Borrower to contribute additional capital
to the Borrower. 

  

	78.	Section 6.13(a)(xix) is revised to read in its entirety as follows: 

  

	 	(xix)	It will allocate fairly and reasonably shared expenses with Affiliates (including shared office space) and use separate stationery, invoices and checks bearing its own
name (or may allow the use of the stationary, invoices and checks of the Property Manager in connection with the operation of the Facility). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-21

	79.	Section 6.13(a)(xx) is amended to read in its entirety as follows: 

  

	 	(xx)	It will pay (or cause the Property Manager or any Facility Operator to pay on behalf of Borrower from Borrower’s funds) its own liabilities (including salaries of its own employees, if any) from its
own funds; provided however, the aforementioned shall not be deemed to require any direct or indirect investor of Borrower to contribute additional capital to Borrower. Borrower’s “own funds” includes funds held in bank accounts
together with the Other Sponsor Borrowers for up to 30 days after the Closing Date, but which are separately identifiable to Borrower and the Mortgaged Property. Borrower’s funds will not be used to pay the liabilities of the Other Sponsor
Borrowers and vice versa. 

  

	80.	Section 6.14(a) is revised to read in its entirety as follows: 

  

	 	(a)	Completion of Repairs. Borrower will commence any Repairs as soon as practicable after the date of this Loan Agreement and will diligently proceed with and complete such Repairs on or before the Completion Date.
All Repairs and Capital Replacements will be completed in a good and workmanlike manner, with suitable materials, and in accordance with good customary building practices
and all applicable laws, ordinances, rules, regulations, building setback lines and restrictions applicable to the Mortgaged Property. Borrower agrees to cause the replacement of any material or work that is defective, unworkmanlike or that does not
comply with the requirements of this Loan Agreement, as determined by Lender. 

  

	81.	Section 6.14(b) is revised to read in its entirety as follows: 

  

	 	(b)	Purchases. Without the prior written consent of Lender, no materials, machinery, equipment, fixtures or any other part of the Repairs or Capital Replacements will be purchased or installed under conditional sale
contracts or lease agreements, or any other arrangement wherein title to such Repairs or Capital Replacements is retained or subjected to a purchase money security interest, or the right is reserved or accrues to anyone to remove or repossess any
such Repairs or Capital Replacements, or to consider them as personal property. Notwithstanding anything to the contrary contained in this Loan Agreement, leases or financing agreements entered
into by Borrower or Facility Operator in the ordinary course of business with third party vendors/lessors for personal property and equipment located at, and used in connection with the operation of, the Facility shall be permitted without the prior
consent of Lender (and such assets shall not be Collateral or Mortgaged Property), provided that the counterparty to such arrangement is not an Affiliate of Borrower and such arrangement is on market terms and the total of all leases or financing
agreements is subject to Section 6.13(a)(x)(B). 

  

	82.	The lead in provision of Section 6.15(b) is revised to read as follows: 

  

	 	(b)	All Leases for residential dwelling units entered into after the date hereof will satisfy the following conditions: 

  

	83.	Section 6.15(b)(i) is revised to read as follows: 

  

	 	(i)	They will be on forms approved by Lender that are customary for similar seniors housing facilities in the Property Jurisdiction. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-22

	84.	Section 6.16 is revised to read in its entirety as follows: 

  

	 	6.16	Litigation; Government Proceedings. Borrower will give prompt Notice to Lender of any litigation or governmental proceedings pending or, to the best of Borrower’s knowledge, threatened in writing against
Borrower, any Borrower Principal, the Facility Operator, or Property Manager which might would or could reasonably be expected to have a Material Adverse Effect. As and
when requested by Lender, Borrower will provide Lender with written updates on the status of all litigation proceedings affecting Borrower, any Borrower Principal, the Facility Operator or Property Manager. 

 

	85.	The lead-in paragraph of 6.17 is revised to read in its entirety as follows: 

  

	 	6.17	Further Assurances and Estoppel Certificates; Lender’s Expenses. Within 10 days after a request from Lender prior to Securitization, and within 20 days
after a request from Lender after a Securitization, in Lender’s Discretion, Borrower will take each of the following actions: 

  

	86.	Section 6.17(a) is revised to read in its entirety as follows: 

  

	 	(a)	Deliver to Lender a written statement, signed and acknowledged by Borrower, certifying to Lender or any Person designated by Lender, as of the date of such statement: (i) that the Loan Documents are unmodified and
in full force and effect (or, if there have been modifications, that the Loan Documents are in full force and effect as modified and setting forth such modifications), (ii) the unpaid principal balance of the Note, (iii) the date to which
interest under the Note has been paid, (iv) that Borrower is not in default in paying the Indebtedness or in performing or observing any of the covenants or agreements contained in this Loan Agreement or any of the other Loan Documents
(or, if Borrower is in default no Event of Default exists (or, if an Event of Default exists, describing such default
the same in reasonable detail), (v) whether there are any then-existing setoffs or defenses known to Borrower against the enforcement of any right or remedy of Lender under
the Loan Documents, and (vi) any additional facts requested by Lender. 

  

	87.	The lead-in paragraph of Section 6.20(b) is revised to read in its entirety as follows: 

  

	 	(b)	Borrower will deliver to Lender such certifications or other evidence certifications, or other evidence reasonably requested by Lender, from
time to time throughout the term of this Loan Agreement, as requested by Lender in Lender’s Discretion, confirming each of the following: 

  

	88.	Section 6.20(b)(iv)(C) is revised to read in its entirety as follows: 

  

	 	(C)	Borrower qualifies as either an “operating company,” a “venture capital operating company,” or a “real estate operating company”
within the meaning of 29 C.F.R. Section 2510.3-101(c), (d) or (e), as either may be amended from time to time or any successor provisions, or is an investment company registered
under the Investment Company Act of 1940. 

  

	89.	Section 6.21(a) is revised to read in its entirety as follows: 

  

	 	(a)	Without limiting the generality of Section 6.03, Borrower will, or will cause any Facility Operator to, operate the Facility for its Intended Use and will, or will cause any Facility Operator to, provide,
to Lender’s reasonable satisfaction, maintain all of the facilities, services, staff, equipment and supplies required or normally associated with a typical high
quality property devoted to the to operate the Facility for its Intended Use. 

  

			
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	90.	Section 6.21(b) is revised to read in its entirety as follows: 

  

	 	(b)	Borrower will, or will cause any Facility Operator to, operate the Facility in a manner such that all applicable Licenses now or hereafter in effect will remain in full force and effect. Borrower will not, and will not
allow any Facility Operator or Property Manager to: (i) transfer any License (or any rights thereunder) to any location other than the Facility, (ii) pledge any License (or any
rights thereunder) as collateral security for any other loan or indebtedness, (iii) terminate any License or permit fail to renew any License not to be renewed
or reissued or fail to apply for the reissuance of any License, as applicable, (iv) rescind, withdraw, revoke, amend, supplement, modify or otherwise alter the nature, tenor
or scope of any License, or (v) permit any License to become the subject of any Downgrade, revocation, suspension, restriction, condition or probation (including any restriction on new admissions or residents). 

 

	91.	Section 6.22 is revised to read in its entirety as follows: 

  

	 	6.22	Facility Reporting. 

  

	 	(a)	Borrower will, or will cause any Facility Operator to, furnish to Lender, within 10 days Business Days after receipt by Borrower or any
Facility Operator, any and all written notices from any Governmental Authority that: (i) any License is being Downgraded, revoked, terminated, suspended, restricted or conditioned or may not be renewed or reissued or that action is pending or
being considered to Downgrade, revoke, terminate, suspend, restrict or condition (or not renew or reissue) any such License, (ii) any violation, fine, finding, investigation or corrective action concerning any
  License is pending or being considered, rendered or adopted, or (iii) any Healthcare Law or any health or safety code or building code violation or other deficiency at the
Mortgaged Property has been identified, but in each case only if the subject matter of such written notice (A) materially impact the operation or value of the Facility, or (B) requires additional formal or informal action by Borrower or
Facility Operator that is more than development or implementation of a routine plan of correction, including participation in hearings concerning continued licensing or Medicare or Medicaid participation, entering into consent orders affecting
licensing affecting the Facility, or engaging in oversight management. 

  

	 	(b)	 Borrower will, or will cause any Facility Operator to, furnish to Lender, within 10 days
Business Days after receipt by Borrower or any Facility Operator, a copy of any survey, report or statement of deficiencies by any Governmental Authority, but only if the subject
matter of such survey, report or statement of deficiencies (i) could materially impact the operation or value of the Facility, or (ii) requires additional formal or informal action by Borrower or Facility Operator that is more than
development or implementation of a routine plan of correction, including participation in hearings concerning continued licensing or Medicare or Medicaid participation, entering into consent orders affecting licensing affecting the Facility, or
engaging in oversight management. Within the time period specified by the Governmental Authority for furnishing a plan of correction, Borrower, or if applicable, a Facility Operator, will do so and

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-24

	 	
will furnish or will cause to be furnished to Lender a copy of the plan of correction concurrently therewith. Borrower will correct or will cause to be corrected in a timely manner (and in all
events by the date required by the Governmental Authority) any deficiency if the failure to do so could cause any License to be Downgraded, revoked, suspended, restricted, conditioned or not renewed or reissued. 

 

	 	(c)	Upon Lender’s request and subject to Privacy Laws, Borrower will, or will cause the Facility Operator to, furnish to Lender true and correct rent rolls and copies of all Leases. 

 

	 	(d)	Borrower will provide Lender with a copy of any material License issued or renewed in the future by a Governmental Authority within 30 days after its issuance or renewal. To the extent that any such License is
assignable, Borrower will assign it to Lender as additional security for the Indebtedness, using a customary form of assignment acceptable to Lender in its discretion. If any License is
issued to a Facility Operator, to the extent such License is assignable, Borrower will cause such operator or management agent Facility Operator to assign the License to
Lender as additional security for the Indebtedness, using a customary form of assignment acceptable to Lender in its discretion. 

 

	 	(e)	Subject to all laws and regulations, including Privacy Laws, Borrower will furnish, and will cause any Facility Operator to furnish, to Lender at
Borrower’s expense all evidence, which Lender may from time to time reasonably request as to the continuing accuracy and validity of all representations and warranties made by Borrower in the Loan Documents and the continuing
compliance with and satisfaction of all covenants and conditions contained in the Loan Documents. 

  

	92.	Section 6.23 is revised to read in its entirety as follows: 

  

	 	6.23	Covenants Regarding Material Contracts. 

  

	 	(a)	Borrower will not, and will not permit any Facility Operator to, enter into any Material Contract, unless that approved by Lender or unless
such Material Contract provides that it is terminable upon not more than 30 days’ notice by Borrower, or if Borrower is not a party to the Material Contract, the Facility Operator,
and their respective successors and assigns, without the necessity of establishing cause and without payment of a penalty or termination fee or extra charge. 

  

	 	(b)	Borrower will (or if Borrower is not a party thereto, will cause a Facility Operator to) fully perform all of its obligations under each Material Contract, and
Borrower will not (and Borrower will not permit a Facility Operator to) enter into, terminate or amend, modify, assign or otherwise encumber its interest in any Material Contract without the prior written approval of Lender. If Borrower or a
Facility Operator enters into any Material Contract in the future (with Lender’s consent thereto), Borrower will (or will cause the operator to), simultaneously with entering into the Material Contract, if requested by Lender (i) assign
its rights under and interest in the Material Contract to Lender as additional security for the Indebtedness, and (ii) obtain and provide to Lender a consent to that assignment by the other party(ies) to the Material Contract. Both the
assignment and the consent must be in a customary form acceptable to Lender in its discretion. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-25

	93.	Section 6.25 is revised to read in its entirety as follows: 

  

	 	6.25	Property Manager and Operator of the Facility. Except as provided by Section 6.09(d),
Borrower will not surrender, terminate, cancel, modify, renew or extend its property management agreementApproved Property Management Agreement or any operating
lease (except for any renewal or extension pursuant to its terms, and except for immaterial modifications); permit the change of the Property Manager or any Facility Operator; enter into
any other agreement relating to the management or operation of the Facility with Property Manager, the Facility Operator, or any other Person (other than the Approved Property Management
Agreement or operating agreement with Property Manager or Facility Operator); or consent to the assignment by the Property Manager or Facility Operator of its interest under such property management
agreementApproved Property Management Agreement, operating lease or similar agreement, as applicable, in each case without the prior written approval of Lender, and in each such
instance the approval by Lender of the property management agreement (other than an Approved Property Management Agreement) and/or operating lease (or similar) agreement, as applicable. If at any time Lender consents to the appointment of a new
Property Manager or Facility Operator, such new Property Manager or Facility Operator and Borrower (or if Borrower is not a party thereto, a Facility Operator) will, as a condition of Lender’s consent, execute an Assignment of Management
Agreement or assignment of operating agreement, as the case may be, in a customary form acceptable to Lender in its discretion. If any such replacement Property Manager or Facility Operator
is an Affiliate of Borrower, and if a nonconsolidation opinion was delivered at the origination of the Loan, Borrower will deliver to Lender an updated nonconsolidation opinion in form and substance satisfactory to Lender with regard to
nonconsolidation. Without limiting the foregoing, except as permitted by Section 6.04(a), Borrower will not, and will not permit any Facility Operator to, enter into any New
Non-Residential Lease, enter into any Modified Non-Residential Lease or terminate any Non-Residential Lease, or enter into, terminate, extend or materially amend any Contract to lease,
manage or operate the Facility without in each instance Lender providing its prior written consent thereto, which may be conditioned upon Lender receiving an assignment thereof in a form acceptable to Lender. 

 

	94.	Section 6.27 is revised to read in its entirety as follows: 

  

	 	6.27	Performance Under Leases. Borrower or a Facility Operator, as applicable, will timely perform, in all material respects, all of the obligations of such
party under all Leases of the Facility or any Mortgaged Property. 

  

	95.	Section 6.28 is revised to read in its entirety as follows: 

  

	 	6.28	Governmental Payor Programs. 

  

	 	(a)	 No more than 5 If, as of the date hereof, 20%
or more of the total number of beds at the Facility shall be are allocated to residents who participate in a
Governmental Payor Program, no more than an additional 5% of the total number of beds may be allocated to residents who participate in a Governmental Payor Program during the term of the
Loan. If, as of the date hereof, less than 20% of the total number of beds at the Facility are 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-26

	 	
allocated to residents who participate in a Governmental Payor Program, no more
than 25% of the total number of beds may be allocated to residents who participate in a Governmental Payor Program during the term of the Loan. 

  

	 	(b)	If Borrower violates the covenant in Section 6.28(a), then Borrower must immediately fundshall not be in default hereunder so long as
Borrower promptly notifies Lender of such violation and, after written demand by Lender, funds a transition reserve with cash in an amount equal to the aggregate of 6 months of principal and interest payments due under the terms of the Note for
the next 6 months. If the Note provides for interest to accrue at a floating or variable interest rate (other than during the “Extension Period,” as defined in the Note, if applicable), then Lender will estimate the amount of the interest
due during such 6-month period. Borrower must also enter into a transition reserve agreement acceptable to Lender in form and content. 

  

	 	(c)	Borrower will furnish to Lender, within 10 daysBusiness Days after receipt by Borrower, any Facility Operator or any Property Manager, any and
all written notices from any Governmental Authority which state that the Governmental Payor Program certification of the Facility is being downgraded to a substandard category, revoked, or
suspended, or that action is pending or being considered to downgrade any such certification. 

  

	 	(d)	Borrower will furnish to Lender, within 10  days Business Days after receipt by Borrower, any Facility Operator or any Property Manager,
a copy of any survey, report or statement of deficiencies by any Governmental Authority administering Governmental Payor Program funds or programs. Within the time period specified by any such Governmental Authority for furnishing a plan of
correction, Borrower will furnish to Lender a copy of the plan of correction. By the date required for cure by the Governmental Authority, Borrower will correct or will cause to be corrected any deficiency the curing of which is a condition of
continued eligibility for Governmental Payor Program payment or reimbursement, including full participation in the Governmental Payor Program for existing residents and for new residents to be admitted with Governmental Payor Program coverage.

  

	 	(e)	Other than in the normal course of business, Borrower will not, and will not permit any Facility Operator or any Property Manager to, change the terms of any of the Governmental Payor Program or its normal billing
payment and reimbursement policies and procedures with respect to such Governmental Payor Program (including the amount and timing of finance charges, fees and write-offs). 

 

	 	(f)	Within 10 days Business Days of the required filing of cost reports of the Facility with the Governmental Payor Program agency or the date of
actual filing of such cost report of the Facility with such agency, whichever is earlier, Borrower will provide Lender with a complete and accurate copy of the annual Governmental Payor Program cost report of the Facility, which will be prepared by
an independent certified public accountant or by an experienced cost report preparer acceptable to Lender, and will promptly furnish Lender any amendments filed with respect to such reports and all responses, audit reports or inquiries with respect
to such reports. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-27

	 	(g)	Subject to prior written notice from Lender and subject to all Privacy Laws, Borrower will permit and will cause any Property Manager or any Facility Operator
to permit representatives appointed by Lender, including independent accountants, agents, attorneys, appraisers and any other persons, to visit and inspect any of the Facility during its normal business hours and at any other reasonable times, and
to take photographs of the Facility, and to write down and record any information such representatives obtain, and will permit Lender or its representatives to investigate and verify the accuracy of the information furnished to Lender under or in
connection with this Loan Agreement or any of the other Loan Documents and to discuss all such matters with its officers, employees and representatives, provided Lender shall be responsible for
the cost of Lender’s examination or inspection excepting (i) one examination or inspection during any 12 month period or (ii) any such examination or inspection conducted during the existence of an Event of Default.

  

	 	(h)	Subject to all applicable laws and regulations, including Privacy Laws, Borrower will furnish and will cause any management agent for the Facility or any
Facility Operator to furnish to Lender, at Borrower’s expense, evidence which Lender may from time to time reasonably request as to the accuracy and validity of or compliance with all representations and
warranties covenants made by Borrower in the Loan Documents and satisfaction of all conditions contained in the
Loan Documents. 

  

	 	(i)	Any inspection or audit of the Facility or the books and records of Borrower, any Property Manager (relating to the Facility) or any Facility Operator, or the
procuring of documents and financial and other information, by or on behalf of Lender, will be for Lender’s protection only, and will not constitute any assumption of responsibility or liability by Lender to Borrower, any Property Manager or
any Facility Operator or anyone else with regard to the condition, construction, maintenance or operation of the Facility. Lender’s approval of any certification given to Lender will not relieve Borrower, Property Manager, or a Facility
Operator of any of their respective obligations. 

  

	 	(j)	Within 120 days after the end of each fiscal quarter of Borrower, Borrower will deliver or cause Property Manager or the Facility Operator to deliver to Lender information in sufficient detail, as determined by Lender,
to show by patient mix (i.e., private and Governmental Payor Program, if applicable) the average monthly census of the Facility, occupancy rates and the amount of income attributed to reimbursements or payments from a Governmental Payor Program.

  

	 	(k)	After During the existence of an Event of Default, Lender is authorized to give notice to all third party payors at Lender’s option,
instructing them to pay all third party payments, including Medicare, Medicaid or TRICARE, which would be otherwise paid to Borrower or to a Facility Operator to Lender, to the extent permitted by law. 

 

	 	(l)	 Borrower will not and will not permit any breach or violation by any Person of any Healthcare Laws pertaining to the Facility or the operation of the
Facility, including any Healthcare Laws pertaining to billing for goods or services by Borrower or any Facility Operator. Borrower will not 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-28

	 	
and will not permit any circumstance to occur which would (i) cause Borrower, a Facility Operator or the Facility to be disqualified for participation in any Governmental Payor Program or
(ii) cause the non-renewal or termination of Borrower, a Facility Operator or the Facility’s participation in any such program, as applicable. 

  

	96.	Section 7.01(d) is revised to read in its entirety as follows: 

  

	 	(d)	The execution of an operating lease with Operating Tenant and the grant of a leasehold interest in an individual dwelling unit for a term of 2 years or less
(or longer if approved by Lender in writing) not containing an option to purchase. 

  

	97.	Section 7.01(g) is revised to read in its entirety as follows: 

  

	 	(g)	ASubject to Section 6.14(b), a Transfer of obsolete or worn out Personalty or Fixtures that are contemporaneously replaced by items of
equal or better function and quality, which are free of Liens, encumbrances and security interests other than those created by the Loan Documents or consented to by Lender. 

 

	98.	Section 7.01(h) is revised to read in its entirety as follows: 

  

	 	(h)	The creation of a mechanic’s, materialmen’s, or judgment Lien against the Mortgaged Property or any other Lien that is not affirmatively granted by
Borrower, which is released of record, bonded, or otherwise remedied to Lender’s satisfaction within 60 days of the date of creation; provided, however, if Borrower is diligently prosecuting such release or other remedy and advises Lender
that such release or remedy cannot be consummated within such 60-day period, Borrower will have an additional period of time (not exceeding 120 days from the date of creation or such earlier time as may be required by applicable law in which the
lienor must act to enforce the Lien) within which to obtain such release of record or consummate such other remedy. 

  

	99.	Section 7.01(k) is revised to read in its entirety as follows: 

  

	 	(k)	ReservedAny Transfer pursuant to a lease or financing arrangement of personal property or equipment permitted by the terms of this Loan
Agreement. 

  

	100.	Section 7.02(c) is revised to read in its entirety as follows: 

  

	 	(c)	A Transfer or series of Transfers of any legal or equitable interest since the Closing Date that result(s) in a change of more than 50% of the ownership interests (or beneficial interests, if the applicable entity is a
trust) in Borrower or any Designated Entity for Transfers, but excluding the Transfer of shares of a publicly held corporation or entity, subject to the requirements of
Section 7.02(e). 

  

	101.	Section 7.02(e) is revised to read in its entirety as follows: 

  

	 	(e)	If Borrower or any Designated Entity for Transfers is a corporation or entity whose outstanding voting stock
or interest is publicly held or held by 100 or more shareholders, one
or more Transfers by a single transferor within a 12-month period affecting an aggregate of 10% or more of that stock. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-29

	102.	Section 7.03(c) is revised to read in its entirety as follows: 

  

	 	(c)	Publicly-Held Entity, Corporation, Fund or Publicly-Held Real Estate Investment Trust. If a Designated Entity for Transfers is a publicly-held
entity, corporation, fund or a publicly-held real estate investment trust, either of the following: 

  

	 	(i)	The public issuance of common stock, preferred stock, convertible debt, equity or other similar securities (“Public Fund/REIT Securities”) and the
subsequent Transfer of such Public Fund/REIT Securities. 

  

	 	(ii)	The acquisition by a single Public Fund/REIT Securities holder of an ownership percentage of 10% or more in the Designated Entity for Transfers, if Borrower provides notice of that acquisition to Lender within 30 days
following the acquisition. 

  

	103.	The lead in sentence to Section 7.03(d)(vi) is revised to read in its entirety as follows: 

  

	 	(vi)	Limited Partner or Non-Managing Member Transfer. A Transfer that results in the cumulative Transfer of more than 50% and up to 100% of the non-managing membership interests in or the limited partnership interests
in Borrower or any Designated Entity for Transfer (“Investor Interests”) (but excluding Public Fund/REIT Securities)  to third party transferees
(“Investor Interest Transfer”), provided that each of the following conditions is satisfied: 

  

	104.	Section 7.03(d)(vi)(B) is revised to read in its entirety as follows: 

  

	 	(B)	At the time of the proposed Investor Interest Transfer, no No Event of Default has occurred and is continuing and no event or
condition has occurred and is continuing that, with the giving of Notice or the passage of time, or both, would become an Event of Default. 

  

	105.	Section 7.03(d)(vi)(E)(2) and (3) are revised to read in their entirety as follows: 

  

	 	(2)	Borrower pays or reimburses Lender, upon demand, for all out-of-pocket costs and expenses, including all Attorneys’ Fees and Costs, incurred by Lender in
connection with the Investor Interest Transfer. 

  

	 	(3)	Lender receives confirmation acceptable a certificate from Borrower confirming to Lender that (X) the requirements of Section 6.13
continue to be satisfied, and (Y) the term of existence of the holder of 25% or more of the Investor Interests after the Investor Interest Transfer (exclusive of any unexercised extension options or rights) does not expire prior to the Maturity
Date. 

  

	106.	Section 7.05(a)(v) is revised to read in its entirety as follows: 

  

	 	(v)	 Lender in Lender’s Discretion has determined that the Mortgaged Property will be managed by a Property Manager meeting the requirements of
Section 6.09(d), and, if applicable, ana Facility Operator whose organization, credit and experience in the operation of similar senior housing facilities is adequate
and appropriate to the overall structure and documentation of the Loan. Any new or replacement Facility Operator approved by Lender must either (A) assume the Loan Documents executed
by the prior Facility Operator, if applicable, or (B)

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-30

	 	
execute Lender’s then-standard documents governing operators of senior housing facilities and transferee will execute any modifications to the Loan Documents required by Lender to document
Facility Operator’s role in the operation of the Facility and appropriately secure the Loan. 

  

	107.	Section 7.05(b)(i) is revised to read in its entirety as follows: 

  

	 	(i)	If Borrower delivers to Lender a current Site Assessment which (A) is dated within 90 days prior to the date of the proposed Transfer, and (B) evidences no presence of Hazardous Materials on the
Mortgaged Property and no other Prohibited Activities or Conditions with respect to the Mortgaged Property (“Clean Site Assessment”), then Lender will release Borrower from all of Borrower’s obligations under the Loan
Documents except for any liability under Section 6.12 or Section 10.02(b) with respect to any loss, liability, damage, claim, cost or expense which directly or indirectly arises from or relates to any Prohibited Activities
or Conditions existing prior to the date of the Transfer. 

  

	108.	Section 9.01(e) is revised to read in its entirety as follows: 

  

	 	(e)	Borrower fails to apply Condemnation proceeds or awards received by Borrower in accordance with the comply with the Condemnation provisions of
Section 6.11. 

  

	109.	Section 9.01(h) is revised to read in its entirety as follows: 

  

	 	(h)	Borrower fails to perform any of its obligations under this Loan Agreement (other than those specified in Sections 9.01(a) through (g)), as and when required, which failure continues for a period of 30 days after Notice
of such failure by Lender to Borrower. However, if Borrower’s failure to perform its obligations as described in this Section 9.01(h) is of the nature that it cannot be cured within the 30 day cure period after such Notice from Lender but
reasonably could be cured within 90120 days, then, if Borrower commences such cure within the 30 day cure period,
and diligently pursues such cure thereafter, Borrower will have an additional time as determined by Lender in Lender’s Discretion, not to exceed an additional
6090 days, in which to cure such default, provided that Borrower has diligently commenced to cure such default during the initial 30 day cure period and diligently pursues the cure
of such default. However, no such Notice or cure periods will apply in the case of any such failure which could, in Lender’s judgment Discretion, absent immediate
exercise by Lender of a right or remedy under this Loan Agreement, result in harm to Lender, danger to tenants or third parties, or impairment of the Note, the Security Instrument or this Loan Agreement or any other security given
under any other Loan Document. 

  

	110.	Section 9.01(i) is revised to read in its entirety as follows: 

  

	 	(i)	Borrower fails to perform any of its obligations as and when required under any Loan Document other than this Loan Agreement which failure continues beyond the applicable cure period, if any, specified in that Loan
Document. (and if no notice and/or cure period is specified therein and such Loan Document does not specify that such failure is an immediate Event of Default, such failure
shall not constitute an Event of Default unless and until such failure continues beyond the notice and cure periods contemplated by Section 9.01(h) above). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-31

	111.	Section 9.01(l) is revised to read in its entirety as follows: 

  

	 	(l)	Borrower or any SPE Equity Owner has made any representation or warranty in Article V or any other Section of this Loan Agreement that is false or misleading in any material
respect when made. 

  

	112.	Section 9.01(p)(ii) is revised to read in its entirety as follows: 

  

	 	(ii)	Either (A) the case is dismissed or discharged within 90 days after filing, or (B) within 90 days following the date of such filing or commencement, the affected Guarantor is replaced with one or more other
Persons acceptable to Lender, in Lender’s Discretion, each of whom executes and delivers to Lender a replacement Guaranty in substantially the form of the Guaranty executed on the Closing
Date or otherwise in form and content acceptable to Lender, together with such customary legal opinions as Lender deems necessary. 

 

	113.	Section 9.01(q)(ii) is revised to read in its entirety as follows: 

  

	 	(ii)	The dissolution of any Guarantor who is an entity, unless each of the following conditions is satisfied: 

  

	 	(A)	Within 30 days following the dissolution of the Guarantor, Borrower causes one or more Persons acceptable to Lender, in Lender’s Discretion, to execute and deliver to Lender a guaranty in a form acceptable
to Lender and in substantially the same form asof the Guaranty executed on the Closing
Date or otherwise in form and content acceptable to Lender, without any cost or expense to Lender. 

  

	 	(B)	Borrower pays the Transfer Processing Fee to Lender. 

  

	114.	Section 9.01(t) is revised to read in its entirety as follows: 

  

	 	(t)	A default under any of the Material Contracts by Borrower or by any Facility Operator, which continues beyond the expiration of any applicable cure period which
could, in Lender’s Discretion, result in impairment of the Note, the Security Instrument or this Loan Agreement or any other security given under any other Loan Document. 

 

	115.	Section 9.02(a) is revised to read in its entirety as follows: 

  

	 	(a)	If Borrower fails to perform any of its obligations under this Loan Agreement or any other Loan Document beyond any notice and cure period provided herein or
therein, or if any action or proceeding is commenced which purports to affect the Mortgaged Property, Lender’s security or Lender’s rights under this Loan Agreement, including eminent domain, insolvency, code enforcement, civil or
criminal forfeiture, enforcement of Hazardous Materials Laws, fraudulent conveyance or reorganizations or proceedings involving a bankrupt or decedent, then Lender, in Lender’s Discretion, may make such appearances, file such documents,
disburse such sums and take such actions as Lender reasonably deems necessary to perform such obligations of Borrower and to protect Lender’s interest, including: (i) payment of Attorneys’ Fees and Costs, (ii) payment of fees and
out-of-pocket expenses of accountants, inspectors and consultants, (iii) entry upon the Mortgaged Property to make Repairs or secure the Mortgaged Property, (iv) procurement of the Insurance required by Section 6.10, (v) payment
of amounts which Borrower has failed to pay under Section 6.08, (vi) performance of Borrower’s obligations under Section 6.09, and (vii) advances made by Lender to pay, satisfy or discharge any obligation of Borrower for the
payment of money that is secured by a Prior Lien. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-32

	116.	Section 9.03(a) is revised to read in its entirety as follows: 

  

	 	(a)	Upon the occurrence and during the continuance of an Event of Default, Lender may exercise any or all of its rights and remedies provided under the Loan
Documents and Borrower will pay all costs associated therewith, including Attorneys’ Fees and Costs. 

  

	117.	Section 9.03(c) is revised to read in its entirety as follows: 

  

	 	(c)	Upon the occurrence and during the continuance of an Event of Default, Lender will have all remedies available to Lender under Revised Article 9 of the Uniform
Commercial Code of the Property Jurisdiction, the Loan Documents and under applicable law. 

  

	118.	Section 9.03(d) is revised to read in its entirety as follows: 

  

	 	(d)	Upon the occurrence and during the continuance of an Event of Default, Lender may also retain (i) all money in the Reserve Funds, including interest, and
(ii) any Cap Payment, and in Lender’s sole and absolute discretion, may apply such amounts, without restriction and without any specific order of priority, to the payment of any and all Indebtedness. 

 

	119.	A new paragraph is added to the end of Section 10.02(b) as follows: 

Notwithstanding the foregoing, or anything to the contrary contained in
Section 5.05 and/or Section 6.12, Borrower shall not be obligated hereunder or liable for indemnification with respect to the introduction and initial release of Hazardous Materials on or from the Mortgaged Property from and after the date
(the “Transfer Date”) that the Lender (or any successor to Lender) acquires title to and has assumed possession and control of the Mortgaged Property through power of sale, foreclosure or deed in lieu of foreclosure; provided, however,
that Borrower will bear the burden of proof that the introduction and initial release of such Hazardous Material (i) occurred subsequent to the Transfer Date, (ii) did not occur as a result of any action, or failure to act, on the part of
Borrower or any Affiliate of Borrower, in, on, under or near the Mortgaged Property, and (iii) did not occur as a result of any Prohibited Activity of Condition which occurred prior to the Transfer Date. 

 

	120.	Section 10.02(d)(ii) is revised to read in its entirety as follows: 

  

	 	(ii)	Borrower will not be liable under the Securitization Indemnification if the claim is based on Borrower Information which has not been approved by Borrower or
which Lender has materially misstated, omitted or materially misrepresented in the Disclosure Document. 

 

	121.	Section 10.02(e) is revised to read in its entirety as follows: 

  

	 	(e)	 Selection and Direction of Counsel. Counsel selected by Borrower to defend Indemnitees will be subject to the approval of those Indemnitees. In
any circumstances in which the indemnity under this Article X applies, Lender may employ its own legal counsel and consultants to prosecute, defend or negotiate any claim or legal or administrative proceeding and Lender, with the prior written

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-33

	 	
consent of Borrower (which will not be unreasonably withheld, delayed or conditioned) may settle or compromise any action or legal or administrative proceeding. However, unless an Event of
Default has occurred and is continuing, or the interests of Borrower and Lender are in conflict, as determined by Lender in Lender’s Discretion, Lender will permit Borrower to undertake the actions referenced in this Article X so long as Lender
approves such action, which approval will not be unreasonably withheld or delayed. Borrower will reimburse Lender upon demand for all out of pocket costs and expenses incurred by Lender,
including all costs of settlements entered into in good faith, consultants’ fees and Attorneys’ Fees and Costs. 

  

	122.	Section 10.02(h)(iii) is revised to read in its entirety as follows: 

  

	 	(iii)	Reimburse Indemnitees for any and all expenses, including Attorneys’ Fees and Costs, paid or incurred in connection with the enforcement by Indemnitees of their rights under this Article
X (but only with respect to any matters against which Indemnitees are entitled to be indemnified under this Article X), or in monitoring and participating in any legal or administrative
proceeding in connection with any matters against which Indemnitees are entitled to be indemnified under this Article X. 

 

	123.	Section 11.01 is revised to read in its entirety as follows: 

  

	 	11.01	Waiver of Statute of Limitations, Offsets and Counterclaims. To the extent permitted by applicable law, Borrower waives the right to assert any statute
of limitations as a bar to the enforcement of this Loan Agreement or the Lien of the Security Instrument or to any action brought to enforce any Loan Document. Borrower waives the right to assert a counterclaim, other than a compulsory counterclaim,
in any action or proceeding brought against it by Lender or otherwise to offset any obligations to make the payments required by the Loan Documents. No failure by Lender to perform any of its obligations under the Loan Documents will be a valid
defense to, or result in any offset against, any payments that Borrower is obligated to make under any of the Loan Documents. 

  

	124.	Section 11.02(b) is revised to read in its entirety as follows: 

  

	 	(b)	Borrower agrees that any controversy arising under or in relation to the Note, the Security Instrument, this Loan Agreement or any other Loan Document may be litigated in the Property Jurisdiction. The state and federal
courts and authorities with jurisdiction in the Property Jurisdiction will have jurisdiction over all controversies that may arise under or in relation to the Note, any security for the Indebtedness or any other Loan Document.
Each of Lender and Borrower irrevocably consents to service, jurisdiction and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue
of domicile, habitual residence or otherwise. However, nothing in this Section 11.02 is intended to limit Lender’s or Borrower’s right to bring any suit, action or proceeding
relating to matters under this Loan Agreement in any court of any other jurisdiction. 

  

	125.	Section 11.03 is amended by adding the following subsection (d): 

  

	 	(d)	 Lender shall endeavor to give the individuals or entities listed below courtesy copies of any Notice given to Borrower or any Guarantor by Lender, at
the addresses set forth below; provided, however, that failure to provide such courtesy copies of Notices shall not affect the validity or sufficiency of any 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-34

	 	
Notice to Borrower or any Guarantor, shall not affect Lender’s rights and remedies hereunder or under any other Loan Documents and shall not subject Lender to any claims by or liability to
Borrower, any guarantor or any other individual or entity. It is acknowledged and agreed that no individual or entity listed below is a third-party beneficiary to any of the Loan Documents. 

c/o Fortress Investment Group 

2901 North Dallas Parkway, Suite 380 

Plano, TX 75093 
 Attn: Matthew
Lucas 
  

	126.	Section 11.13(b) [SEE Additional Provisions – Sale of Securitization of Loan rider attached to this Loan Agreement] 

  

	127.	Section 11.17(c) is revised to read in its entirety as follows: 

  

	 	(c)	Borrower agrees to cooperate with all reasonable requests of Lender to accomplish the foregoing, including execution and prompt delivery to Lender of a severance agreement and such other documents
(each in customary form for similar transactions with institutional lenders) as Lender requires in Lender’s Discretion, and Lender will reimburse Borrower for all costs reasonably
incurred by Borrower in connection with actions taken by Borrower pursuant to Lender’s request under the terms of this Section 11.17. 

  

	128.	Article XII definitions are added or revised as follows: 

 “Attorneys’ Fees and
Costs” means: (i) fees and out of pocket costs of Lender’s and Loan Servicer’s outside attorneys, as applicable, including costs of Lender’s and Loan
Servicer’s in-house counsel, support staff costs, costs of preparing for litigation, computerized research, telephone and facsimile transmission expenses, mileage, deposition costs, postage, duplicating, process service, videotaping
and similar costs and expenses; (ii) costs and fees of expert witnesses, including appraisers; (iii) investigatory fees; and (iv) costs for any opinion required by Lender pursuant to the terms of the Loan Documents. 

“Borrower Principal” means any of the following: 
  

	 	(i)	Any general partner of Borrower (if Borrower is a partnership). 

  

	 	(ii)	Any manager or managing member of Borrower (if Borrower is a limited liability company). 

  

	 	(iii)	Any Person (limited partner, member or shareholder) with a collective direct or indirect equity interest in Borrower equal to or greater than 25% (excluding any
Person holding shares in a publicly held company or entity). 

  

	 	(iv)	Any Guarantor of all or any portion of the Loan or of any obligations of Borrower under the Loan Documents. 

“Environmental Permit” means any permit, license, or other authorization
issuedrequired under any Hazardous Materials Law with respect to anyfor the activities or
businesses conducted on or in relation to the Mortgaged Property. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-35

 “Facility Operator” means any tenant (an “Operating Tenant”)
under a lease with Borrower (as landlord) of all or substantially all of the Facility, as well as any manager or Facility Operator pursuant to a Contract with Borrower or with an Operating Tenant. The Facility Operator as of the
Closing Date is N/A. 
 “Hazardous Materials Law” and “Hazardous Materials Laws” means any and all
federal, state and local laws, ordinances, regulations and standards, rules, policies and other governmental requirements, administrative rulings and court judgments and decrees in effect now or in the future,
including all amendments, that relate to Hazardous Materials or the protection of human health (as related to exposure to Hazardous Materials) or the environment and apply to Borrower or to
the Mortgaged Property. Hazardous Materials Laws include the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601, et seq., the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Section 6901,
et seq., the Toxic Substance Control Act, 15 U.S.C. Section 2601, et seq., the Clean Water Act, 33 U.S.C. Section 1251, et seq., and the Hazardous Materials Transportation Act, 49 U.S.C. Section 5101 et seq., and their state analogs.

 “License” means any license, permit, regulatory agreement, certificate, approval, certificate of need or similar
certificate, authorization, accreditation, approved provider status in any approved provider payment program, or approval issued by an applicable state department of health (or any subdivision thereof) or state licensing agency, as applicable, in
each instance whether issued by a Governmental Authority or otherwise, used in connection with, or necessary or desirable to use, occupy or operate required by applicable law
for the use or operation of the Facility for its Intended Use, including the provision of all goods and services to be provided by Borrower or the Facility Operator to the residents of the Facility. 

“Material Contract” means Contracts, but specifically excluding
National Contracts: 
  

	 	(i)	For preparing or serving food (but do not include food supply Contracts), regardless ofthe annual consideration or
termof which, directly or indirectly, is at least $50,000 per year. 

  

	 	(ii)	For medical services or healthcare provider agreements, regardless ofthe annual consideration or
termof which, directly or indirectly, is at least $50,000 per year. 

  

	 	(iii)	The average annual consideration of which, directly or indirectly, is at least $20,000100,000. 

 

	 	(iv)	Having a term of more than one year and the annual consideration of which, directly or indirectly, is at least $50,000 per year, unless subject to termination
by Borrower or if Borrower is not a party to the Contract, the Facility Operator, and their respective successors and assigns, upon not more than 30 days’ notice, without cause and
without payment of any termination fee, penalty or extra charge. 

  

	 	(v)	Determined by Lender to be material to the operation of the Facility necessary to obtain or maintain a License required for the use and operation
of the Facility for its Intended Use. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-36

 “Mortgaged Property” means all of Borrower’s present and future right,
title and interest in and to all of the following: 
  

	 	(xix)	AllTo the extent assignable, all rights to payments from Governmental Payor Programs and rights to payment from private insurers, arising from
the operation of the Facility. 

  

	 	(xx)	AllTo the extent assignable, all Licenses. 

“National Contract” means any Contract to which any Property Manager
is a party that provides for the provision of goods or services to the Facility and to other facilities owned or leased by any Person that is not the Borrower or any Facility Operator. 

“Prohibited Activity or Condition” means each of the following: 

 

	 	(i)	The presence, use, generation, release, treatment, processing, storage (including storage in above-ground and underground storage tanks), handling or disposal of any Hazardous Materials on or under the Mortgaged
Property. 

  

	 	(ii)	The transportation of any Hazardous Materials to, from or across the Mortgaged Property. 

  

	 	(iii)	Any occurrence or condition on the Mortgaged Property, which occurrence or condition is or may be in violation of Hazardous Materials Laws. 

 

	 	(iv)	Any violation of or noncompliance with the terms of any Environmental Permit with respect to the Mortgaged Property. 

  

	 	(v)	Any violation or noncompliance with the terms of any O&M Program. 

 However, the term
“Prohibited Activity or Condition” expressly excludes lawful conditions permitted by an O&M Program or the safe and lawful use and storage of quantities of: (i) medical products or devices or medical waste,
(ii) pre-packaged supplies, cleaning materials and petroleum products customarily used in the operation and maintenance of comparable multifamily properties, (iii) cleaning materials, personal grooming items and other items sold in
pre-packaged containers for consumer use and used by tenants and occupants of residential dwelling units in the Mortgaged Property, and (iv) petroleum products used in the operation and maintenance of
the Facility including, without limitation, the operation of motor vehicles from time to time located on the Mortgaged Property’s parking
areasand generators, so long as all of the foregoing are used, stored, handled, transported and disposed of in compliance with Hazardous Materials Laws. 

“Property Manager” means SNR 27 Alexis Gardens Management, LLC, a Delaware limited liability company, and Holiday AL
Management Sub LLC, a Delaware limited liability company, both individually and collectively, or another residential property manager which is managing the Facility in
accordance with Section 6.09(d) or approved by Lender in writing. 
 “Site Assessment” means an environmental
assessment report for the Mortgaged Property prepared at Borrower’s expense by a qualified environmental consultant engaged by Borrower, or by Lender on behalf of Borrower, and approved by Lender, and in a manner reasonably satisfactory to
Lender, based upon an investigation relating to and making appropriate inquiries to evaluate the risks associated with Mold and any existence of Hazardous Materials on or about the Mortgaged Property, and the past or present discharge, disposal,
release or escape of any such substances, all consistent with the most current version of the ASTM 1527 standard (or any successor standard published by ASTM) and good customary and commercial practice. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-37

	B.	Transaction Specific Modifications 

  

	1.	The following is added to Section 7.03(c) of the Loan Agreement: 

  

	 	(iii)	The merger or consolidation of a publicly held fund or public Real Estate Investment Trust (“Public Fund/REIT”) with any Person, the sale or other Transfer of all of the Public Fund/REIT’s assets
to another Person or the Transfer of interests in the Public Fund/REIT by operation of law to another Person if both of the following conditions are met. 

  

	 	(A)	If the Public Fund/REIT is the Guarantor, the Borrower must remain Controlled directly or indirectly by the Guarantor (or any successor to Guarantor). 

 

	 	(B)	The Guarantor (or any successor entity) continues to meet the Minimum Net Worth Requirements as set forth in the Guaranty and assumes in writing all of the Guarantor’s obligations. 

 

	2.	The following is added as an additional Event of Default under Section 9.01: 

  

	 	(pp)	The occurrence of an “Event of Default” under the Other Sponsor Loan Documents. 

  

	3.	The following new provision is added to Article XI: 

  

	 	11.21	Adjustment of Cross-Default. 

 In the event of an Event of Default under
Section 9.01(pp), Lender may elect, in Lender’s sole option and discretion, not to enforce the cross-default provision under Section 9.01(pp) with respect to one or more or all of the Other Sponsor Loans, at any time, or from
time to time. Any election by Lender not to enforce the cross default provisions will not constitute a waiver of Lender’s right to enforce those provisions in the future with respect to such default or any other future default, and will not
constitute a waiver of any of Lender’s other rights under the Loan Documents. 
  

	4.	The following new definitions are added to Article XII: 

 “Other Sponsor
Indebtedness” means, in the aggregate, the “Indebtedness” as defined in the Other Sponsor Loan Documents for each of the Other Sponsor Loans. 

“Other Sponsor Loan Documents” means the documents evidencing, securing and otherwise governing each of the Other Sponsor
Loans.  
 “Other Sponsor Loans” means the loans described on Exhibit P attached hereto, other than the
Loan.
 “Other Sponsor Borrowers” means the “Borrowers” under the Other Sponsor Loans, as further identified on
Exhibit P. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-38

 “Primary Property Manager” means SNR 27 Alexis Gardens Management LLC, a
Delaware limited liability company, or an entity that is owned and controlled by Guarantor and becomes a Property Manager pursuant to Section 6.09(d). 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page B-39

 EXHIBIT C 

REPAIR SCHEDULE OF WORK 
  

																	
	 Description of Repair
	  	 	 	  	 	 	 	 	 	  	 
	 Item
	  	 Required Action
	  	 Cost
	 	  	 Escrow %
	 	 	 Escrow
Amount
	 	  	 Completion
Date

	 ADA Compliance
	  	Number of designated parking stalls (1) and signage for vans are not provided	  	$	340.00	  	  	 	0	% 	 	$	0.00	  	  	180 days

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page C-1

 EXHIBIT D 

REPAIR DISBURSEMENT REQUEST 
 NOT
APPLICABLE 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page D-1

 EXHIBIT E 

WORK COMMENCED AT MORTGAGED PROPERTY 

NONE 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page E-1

 EXHIBIT F 

CAPITAL REPLACEMENTS 
  

	 	•	 	Carpet/vinyl flooring 

  

	 	•	 	Window treatments 

  

	 	•	 	Roofs 

  

	 	•	 	Furnaces/boilers 

  

	 	•	 	Air conditioners 

  

	 	•	 	Ovens/ranges 

  

	 	•	 	Refrigerators 

  

	 	•	 	Dishwashers 

  

	 	•	 	Water heaters 

  

	 	•	 	Garbage disposals 

  

	 	•	 	Other items that Lender may approve subject to any conditions that Lender may require, all in Lender’s sole and absolute discretion. 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page F-1

 EXHIBIT G 

DESCRIPTION OF GROUND LEASE 
 Not
Applicable 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page G-1

 EXHIBIT H 

ORGANIZATIONAL CHART OF BORROWER AS OF THE CLOSING DATE 
  

 
 

 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page H-1

 EXHIBIT I 

DESIGNATED ENTITIES FOR TRANSFERS AND GUARANTOR(S) 

Designated Entities for Transfers 
 Propco 27 LLC

 SNR 27 Owner LLC 
 New Senior Investment Group Inc. 

Guarantor(s) 
 New Senior Investment Group Inc.

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page I-1

 EXHIBIT J 

DESCRIPTION OF RELEASE PARCEL 

Not Applicable 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page J-1

 EXHIBIT K 

LICENSES 
  

			
	 LICENSE
	  	 HOLDER

	None	  	N/A
		  	
		  	
		  	

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page K-1

 EXHIBIT L 

FURNITURE, FIXTURES, EQUIPMENT, AND MOTOR VEHICLES 
  

					
	 FURNITURE, FIXTURES, EQUIPMENT, AND MOTOR VEHICLES
	  	 OWNER
	  	 LESSEE

			
	All tangible personal property, machinery, apparatus, appliances, equipment and supplies currently used in the operation, repair and maintenance of all or any portion of the Land and/or Improvements (excluding, however, any tangible
personal property and fixtures which are owned by residents)	  	Borrower	  	N/A
			
	 2002 Chevy Starcraft Allstar
	  	Borrower	  	N/A

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page L-1

 EXHIBIT M 

CONTRACTS 
 NOT APPLICABLE

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page M-1

 EXHIBIT N 

MATERIAL CONTRACTS 
 NOT
APPLICABLE 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page N-1

 EXHIBIT O 

BORROWER’S CERTIFICATE OF 

PROPERTY IMPROVEMENT ALTERATIONS COMPLETION 

THIS BORROWER’S CERTIFICATE OF PROPERTY IMPROVEMENT ALTERATIONS COMPLETION (“Certificate”) is made as of
                 , 20    , by
                    , a                     
(“Borrower”) for the benefit of                     , a
                    , and it successors and assigns (collectively, “Lender”). 

In connection with Section 6.09(e)(v)(G) of the Loan Agreement, Borrower certifies to Lender as follows: 

[INSERT THE APPLICABLE SECTION (a) AND DELETE THE OTHER:] 

[USE THE FOLLOWING IF ALL PROPERTY IMPROVEMENT ALTERATIONS THAT WERE COMMENCED HAVE BEEN COMPLETED] 

 

	(a)	All Property Improvement Alterations described in the Property Improvement Notice that were commenced have been completed. The completed Property Improvement Alterations and their completion dates are as follows:

  

			
	 Description of Property Improvement

Alteration Commenced
	  	 Completion Date

		  	
		  	

 [OR] 
 [USE THE
FOLLOWING IF MINIMUM OCCUPANCY HAS DECREASED BELOW THE MINIMUM OCCUPANCY REQUIREMENT AND NOT ALL THE PROPERTY IMPROVEMENT ALTERATIONS THAT WERE COMMENCED HAD BEEN COMPLETED AT SUCH TIME] 

 

	(a)	All Property Improvement Alterations described in the Property Improvement Notice that resulted in individual residential dwelling units not being available for leasing that were commenced have been or will be completed
in a timely manner. Such Property Improvement Alterations that were commenced and their completion dates and/or, if applicable, anticipated completion dates, are as follows: 

 

							
	 Description of Property

Improvement Alteration

Commenced
	 	 Completion

Date
	 	 Anticipated

Completion

Date
	  	 Comments

		 		 		  	
		 		 		  	

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page O-1

 [FOR ALL LOANS:] 
  

	(b)	The completed Property Improvement Alterations were completed in a good and workmanlike manner and in compliance with all laws (including, without limitation, any and all life safety laws, environmental laws, building
codes, zoning ordinances and laws for the handicapped and/or disabled) 

  

	(c)	Should Borrower intend to contest any claim or claims for labor, materials or other costs, Borrower agrees to give Lender notice within 30 days of the existence of such claim or claims and certifies to Lender that
payment of the full amount which might in any event be payable in order to satisfy such claim or claims will be made. 

 [INSERT THE
FOLLOWING IF MINIMUM OCCUPANCY HAS DECREASED BELOW THE MINIMUM OCCUPANCY REQUIREMENT] 
  

	(d)	Any additional Property Improvement Alterations not yet commenced which would cause residential dwelling units to be unavailable for leasing have been suspended. 

[BORROWER SIGNATURE] 

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page O-2

 EXHIBIT P 

OTHER SPONSOR LOANS 
  

											
	 Name of Project

City and State
	  	 Borrower
	  	Loan
Amount	 	  	Freddie Mac
Loan No.	 
	 Andover Place

(Little Rock, Arkansas)
	  	SNR 27 Andover Place Owner LLC	  	$	13,995,000	  	  	 	504193279	  
	 Arcadia Place

(Vista, California)
	  	SNR 27 Arcadia Place Owner LLC	  	$	16,575,000	  	  	 	504193287	  
	 Aspen View

(Billings, Montana)
	  	SNR 27 Aspen View Owner LLC	  	$	14,110,000	  	  	 	504193252	  
	 Augustine Landing

(Jacksonville, Florida)
	  	SNR 27 Augustine Landing Owner LLC	  	$	19,076,000	  	  	 	504193260	  
	 Cedar Ridge

(Burlington, North Carolina)
	  	SNR 27 Cedar Ridge Owner LLC	  	$	15,637,000	  	  	 	708640494	  
	 Echo Ridge

(Knoxville, Tennessee)
	  	SNR 27 Echo Ridge Owner LLC	  	$	20,910,000	  	  	 	504193538	  
	 Elm Park Estates

(Roanoke, Virginia)
	  	SNR 27 Elm Park Estates Owner LLC	  	$	13,582,000	  	  	 	504193473	  
	 Genesee Gardens

(Flint Township, Michigan)
	  	SNR 27 Genesee Gardens Owner LLC	  	$	15,900,000	  	  	 	504193759	  
	 Greenwood Terrace

(Olathe, Kansas)
	  	SNR 27 Greenwood Terrace Owner LLC	  	$	19,643,000	  	  	 	708640303	  
	 Holiday Hills Estates

Rapid City, South Dakota
	  	SNR 27 Holiday Hills Estates Owner LLC	  	$	12,063,000	  	  	 	504193856	  
	 Indigo Pines

(Hilton Head Island, South Carolina)
	  	SNR 27 Indigo Pines Owner LLC	  	$	15,334,000	  	  	 	504193880	  
	 Kalama Heights

(Kihei, Hawaii)
	  	SNR 27 Kalama Heights Owner LLC	  	$	22,896,000	  	  	 	504194224	  
	 Marion Woods

(Ocala, Florida)
	  	SNR 27 Marion Woods Owner LLC	  	$	19,936,000	  	  	 	708640346	  
	 Montara Meadows

(Las Vegas, Nevada)
	  	SNR 27 Montara Meadows Owner LLC	  	$	11,670,000	  	  	 	504194283	  
	 Niagara Village

(Erie, Pennsylvania)
	  	SNR 27 Niagara Village Owner LLC	  	$	12,845,000	  	  	 	708640133	  
	 Parkrose Chateau

(Portland, Oregon)
	  	SNR 27 Parkrose Chateau Owner LLC	  	$	12,569,000	  	  	 	708640141	  
	 Pinegate

(Macon, Georgia)
	  	SNR 27 Pinegate Owner LLC	  	$	12,902,000	  	  	 	504193767	  
	 Quail Run Estates

(Agawam, Massachusetts)
	  	SNR 27 Quail Run Estates Owner LLC	  	$	18,799,000	  	  	 	708640206	  
	 Quincy Place

(Denver, Colorado)
	  	SNR 27 Quincy Place Owner LLC	  	$	16,435,000	  	  	 	708640257	  
	 Stone Lodge

(Bend, Oregon)
	  	SNR 27 Stone Lodge Owner LLC	  	$	19,675,000	  	  	 	708640451	  
	 Redbud Hills

(Bloomington, Indiana)
	  	SNR 27 Redbud Hills Owner LLC	  	$	16,500,000	  	  	 	708640273	  
	 The Jefferson

(Middleton, Wisconsin)
	  	SNR 27 The Jefferson Owner LLC	  	$	13,394,000	  	  	 	708640419	  

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page P-1

											
	 The Remington

(Hanford, California)
	  	SNR 27 The Remington Owner LLC	  	$	13,628,000	  	  	 	708640699	  
	 The Springs of Escondido

(Escondido, California)
	  	SNR 27 The Springs of Escondido Owner LLC	  	$	15,375,000	  	  	 	708640427	  
	 The Springs of Napa

(Napa, California)
	  	SNR 27 The Springs of Napa Owner LLC	  	$	15,408,000	  	  	 	708640435	  
	 The Woods at Holly Tree

(Wilmington, North Carolina)
	  	SNR 27 The Woods at Holly Tree Owner LLC	  	$	27,382,000	  	  	 	708640753	  
	 University Pines

(Pensacola, Florida)
	  	SNR 27 University Pines Owner LLC	  	$	21,057,000	  	  	 	708640583	  

  

			
	Multifamily Loan and Security Agreement – Seniors Housing	  	Page P-2

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