Document:

Exhibit 10.54

 

	 	Loan Agreement – SFR (Revised 6-29-2018)

                                                                      

                                                                     Freddie
                                         Mac Loan Number:
	505040506

 

	Borrower:	Reven Housing Funding 1, LLC
	Lender:	Arbor Agency Lending, LLC
	Effective Date:	September 28, 2018
	Loan Amount:	$51,362,000.00

 

This Loan Agreement (“Loan Agreement”)
is made by and between Borrower and Lender and is dated as of the Effective Date. Lender has agreed to make and Borrower has agreed
to accept a loan for the Loan Amount (“Loan”) upon the terms and subject to the conditions in this Loan Agreement.
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. Lender and Borrower each acknowledge the receipt and sufficiency of adequate consideration for the making and receiving
of this Loan.

 

	Table of Contents	 	 	 
	Article I	Key Terms	Article VII	Transfers
	Article II	Security Agreement	Article VIII	Events of Default and Remedies
	Article III	Personal Liability	Article IX	Release; Indemnity
	Article IV	Reserve Funds and Requirements	Article X	Miscellaneous Provisions
	Article V	Representations and Warranties	Article XI	Defined Terms
	Article VI	Covenants	 	 

 

ARTICLE I –  KEY TERMS.

 

	Modifications and Riders
	x	Loan Agreement modifications are included in Exhibit B
	 ̈	The following rider(s) are attached to this Loan Agreement: 

[if checked, list]

 

	Base Recourse
	A portion of the Indebtedness equal to 25% of the Loan Amount (see Article III)

 

	Tax, Insurance, and HOA Fee Reserves	 
	Taxes
    -            x
    Collected or      ̈ Deferred	Insurance premiums - x Collected or  ̈ Deferred
	HOA
    Fees -      ̈ Collected
    or     x Deferred	 
	(See Article IV)	 

 

	Capital Replacement and Repair Reserve
	Capital
Replacement and Repair Reserve Monthly Deposit of $41,200.00 is x Collected
or  ̈ Deferred
	 ̈	One
    Time Capital Replacement Deposit of $ ______________ is required for Additional Capital Replacements.
	 ̈	One Time Repair Deposit of $ ______________is required for Priority Repairs
	Capital Replacement and Repair Reserve Fund Disbursement Minimum is $10,000.
	
        (See Article IV)

        Recourse and other requirements related to Repairs are detailed
        in Sections 3.03, 3.04, and Section 6.14.

  

	Required Additional Capital Replacements and Repairs
	 ̈	
        Additional Capital Replacements are required and are listed
        in Exhibit B.

        The Additional Capital Replacements Completion Date is_______days
        after the Effective Date.

	x	Priority Repairs
    are required and are listed in Exhibit B.

 

    	Loan Agreement – SFR	Page 1

     

    

 

	Special Purpose Reserve
	 ̈	
        One Time Special Purpose Reserve Fund Deposit in the
        amount of $ ________ is required

        The Termination Date is _________ days after the Effective
        Date. The Release         Conditions are listed in Exhibit B.

	(See Article IV)

  

	Property Management
	As of the Effective Date, the Mortgaged Properties are managed by the following Property Manager(s):
	Marathon Management, LLC
	WFI Management, LLC (D/B/A Anchor Property Management)
	SunCoast Property Management, LLC
	AHI Properties, LLC
	(See Section 6.09 for requirements for management of the Mortgaged Properties.)

 

	Required Rent to Debt Service Ratio	Property Release Cap
	1.40 : 1:00	124 Mortgaged Properties
	(See Section 7.05 for Mortgaged Property release provisions.)

 

	Guarantor(s)
	Reven Housing REIT, Inc.
	 
	 

 

	Pledgor
	Reven Housing Funding Manager, LLC

 

	Notices
	Addresses for Notices as of the Effective Date are as follows (See Section 10.03)
	If to Lender:	Arbor Agency Lending, LLC
	 	3360 Walden Avenue, Suite 114
	 	Depew, New York 14043
	If to Borrower:	Reven Housing Funding 1, LLC
	 	875 Prospect Street, Suite 304
	 	La Jolla, CA 92037
	 	Attn: Thad Meyer

 

    	Loan Agreement – SFR	Page 2

     

    

 

		ARTICLE II	SECURITY AGREEMENT.

 

		2.01	Uniform Commercial Code Security Agreement. This
Loan Agreement is also a security agreement for any portion of the Mortgaged Properties which, under applicable law, may be subjected
to a security interest under the UCC, 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 the Mortgaged
Properties are owned now or acquired in the future, and all products and cash and non-cash proceeds of the Mortgaged Properties
and all Reserve Funds (collectively, “UCC Collateral”), and by this Loan Agreement, Borrower grants to Lender
a security interest under the UCC in the UCC Collateral.

 

		ARTICLE III	PERSONAL LIABILITY.

 

		3.01	Limited Recourse Generally. Except as otherwise
provided in this Article III, neither Borrower, Pledgor, nor any member or manager of Pledgor will have any personal liability
under the Note, this Loan Agreement or any other Loan Document for the repayment of the Indebtedness or for the performance of
or compliance with any other obligations of Borrower under the Loan Documents, and Lender’s only recourse for the satisfaction
of the Indebtedness and the performance of such obligations will be Lender’s exercise of its rights and remedies with respect
to the Mortgaged Properties, the equity interests in Borrower pursuant to the terms of the Pledge Agreement, and to any other
collateral held by Lender as security for the Indebtedness. This limitation on Borrower’s liability will not limit or impair
Lender’s enforcement of its rights against any Guarantor.

 

		3.02	Base Recourse. Borrower will be personally liable
to Lender for the Base Recourse specified in Article I (“Base Recourse”), plus any other amounts for which
Borrower has personal liability under this Article III.

 

		3.03	Loss or Damage Recourse. Borrower will be personally
liable to Lender for the repayment of a portion of the Indebtedness equal to any loss or damage suffered by Lender as a result
of the occurrence of any of the following events:

 

		(a)	Borrower fails to complete any of the Priority Repairs.

 

		(b)	Borrower fails to pay to Lender upon demand after an
Event of Default all Rents to which Lender is entitled under Section 3 of the Security Instrument and the amount of all security
deposits collected by Borrower from tenants then in residence. This Section 3.03(b) will not apply if Borrower’s failure
is a result of a valid order issued in, or an automatic stay applicable because of, bankruptcy, receivership, or a similar judicial
proceeding.

 

		(c)	Borrower fails to apply all Insurance proceeds and Condemnation
proceeds as required by this Loan Agreement. This Section 3.03(c) will not apply if Borrower’s failure is a result of a
valid order issued in, or an automatic stay applicable because of, bankruptcy, receivership, or a similar judicial proceeding.

 

		(d)	If an Event of Default has occurred and is continuing,
Borrowerfails to deliver allBooks and Records, contracts, Leases and other instruments relating to the Mortgaged Properties
or their operation in accordance with the provisions of Section 6.07.

 

		(e)	Borrower fails to pay when due any of the following:

 

		(i)	Taxes, if Lender does not collect a Tax Reserve Fund.

 

		(ii)	Insurance premiums, if Lender does not collect an Insurance
Reserve Fund.

 

		(iii)	Water and sewer charges that could become a lien on any
Mortgaged Property.

 

    	Loan Agreement – SFR	Page 3

     

    

 

		(iv)	Assessments or any Other Charges that could become a
lien on any Mortgaged Property.

 

		(v)	Transfer or recording Taxes required to be paid by Borrower.

 

		(f)	Borrower engages in any willful act of material waste
of any Mortgaged Property.

 

		(g)	Any of the following Transfers occurs:

 

		(i)	Any Person that is not an Affiliate of Borrower or a
Borrower Principal creates a mechanic’s lien or other involuntary lien or encumbrance against any Mortgaged Property and
Borrower has not complied with the provisions of Article VII.

 

		(ii)	A Transfer by devise, descent or operation of law occurs
upon the death of a natural person and such Transfer does not meet Lender’s requirements in Article VII.

 

		(iii)	Borrower grants an easement that does not meet Lender’s
requirements.

 

		(iv)	Borrower executes a Lease that does not meet Lender’s
requirements.

 

		(h)	If any Mortgaged Property is located in Ohio and such
Mortgaged Property is subject to any oil or gas lease, pipeline agreement, or other instrument related to the production or sale
of oil or natural gas that under applicable state law has been given priority over the Security Instrument.

 

		(i)	If any Mortgaged Property is non-conforming under the
applicable zoning laws, ordinances and/or regulations in the applicable Property Jurisdiction (“Zoning Code”),
either of the following circumstances occurs following a casualty affecting the Mortgaged Property and the Borrower does not Transfer
the Mortgaged Property to a third party pursuant to either Section 7.05(a) or Section 7.05(b):

 

		(i)	The Improvements impacted by the casualty cannot be rebuilt
or restored to their pre-casualty condition under the terms of the Zoning Code and the Mortgaged Property Insurance proceeds
available to Lender under the terms of this Loan Agreement are insufficient to repay the Indebtedness in full.

 

		(ii)	Borrower fails to commence and diligently pursue completion
of any Restoration within the time frame required by both the Zoning Code and any permits issued pursuant to the Zoning Code which
are necessary to allow the Restoration of such Mortgaged Property to its pre-casualty condition.

 

		(j)	If primary ingress to and egress from a Mortgaged Property
is through an easement or private road, any party takes, or threatens to take, any action to deny ingress to or egress from such
Mortgaged Property from or to a publicly dedicated and maintained right-of-way.

 

		(k)	If Borrower fails to pay in full the amount of principal
and interest due under the Note on each of the first three Payment Dates under the Note.

 

		(l)	Any Loan Party commences any legal or other proceeding
related to the Loan that delays, opposes, impedes, obstructs, hinders, enjoins or otherwise interferes with or frustrates the
efforts of Lender to exercise any rights and remedies available to Lender under the Loan Documents, except for any proceedings
instituted in good faith or are otherwise expressly permitted under the Loan Documents.

 

		(m)	Borrower or Pledgor fails to comply with any provision
of Section 6.13(a)(i) through (iv) and Section 6.13(a)(vii) through (xiii) (subject to possible full recourse liability as set
forth in Section 3.05(b)).

 

    	Loan Agreement – SFR	Page 4

     

    

 

		(n)	Borrower or any Affiliate or employee of Borrower makes
an unintentional written material misrepresentation in connection with (i) the application for or creation of the Indebtedness,
(ii) on-going financial or other reporting requirements or information required by the Loan Documents, or (iii) any request by
Borrower or Guarantor for any action or consent by Lender; provided that the assumption will be that any written material misrepresentation
was intentional and the burden of proof will be on Borrower to prove that there was no intent.

 

		3.04	Performance and Cost Recourse. Borrower will bepersonally
liable to Lenderfor all of the following:

 

		(a)	The performance of, and the cost to Lender of any nonperformance
of, all of Borrower’s obligations under each of the following:

 

		(i)	Section 6.14(a) (relating to completion of Priority Repairs).

 

		(ii)	Sections 6.12 and 9.02(b) (relating to environmental
matters).

 

		(b)	The cost to Lender of each of the following:

 

		(i)	Any audit required under Section 6.07.

 

		(ii)	Any expenses incurred in connection with the collection
of any amount for which Borrower is personally liable under this Article III, including Attorneys’ Fees and Costs and the
costs of conducting any independent audit of Borrower’s Books and Records to determine the amount for which Borrower has
personal liability.

 

		3.05	FullRecourse. Borrower will become personallyliable
to Lender for the repayment of all of the Indebtedness upon the occurrence of any of the following:

 

		(a)	Borrower or Pledgor fails to comply with Sections 6.13(a)(v)
or (vi).

 

		(b)	Borrower or Pledgor fails to comply with any provision
of any of Sections 6.13(a)(i) through (iv) or Sections 6.13(a)(vii) through (xiii) and a court of competent jurisdiction holds
or determines that such failure or combination of failures is the basis, in whole or in part, for the substantive consolidation
of the assets and liabilities of Borrower and/or Pledgor with the assets and liabilities of a debtor pursuant to Title 11 of the
Bankruptcy Code.

 

		(c)	A Transfer that is an Event of Default under Section
7.02 occurs, other than a Transfer set forth in Section 3.03(g) (for which Borrower will have personal liability for Lender’s
loss or damage); provided, however, that Borrower will not have any personal liability for a Transfer consisting solely of the
involuntary removal or involuntary withdrawal of a general partner in a limited partnership or a manager in a limited liability
company.

 

		(d)	There was fraud or intentional written material misrepresentation
by Borrower or any Affiliate or employee of Borrower in connection with (i) the application for or creation of the Indebtedness,
(ii) on-going financial or other reporting requirements or information required by the Loan Documents, or (iii) any request by
Borrower or Guarantor for any action or consent by Lender.

 

		(e)	A Bankruptcy Event occurs with respect to Borrower.

 

		3.06	Exercise of Lender’s Rights and Application
of Payment. If Borrower has personal liability under this Article III, then Lender may, to the fullest extent permitted by
applicable law, exercise its rights against Borrower personally without regard to whether Lender has exercised any rights against
a Mortgaged Property or any other security, or pursued any rights against any Guarantor, or pursued any other rights available
to Lender under the Note, this Loan Agreement, any other Loan Document or applicable law. To the fullest extent permitted by applicable
law, in any action to enforce Borrower’s personal liability under this Article III, Borrower waives any right to set off
the value of a Mortgaged Property against such personal liability. All payments made by Borrower with respect to the Indebtedness
and all amounts received by Lender from the enforcement of its rights under the Loan Documents will be applied first to the portion
of the Indebtedness for which Borrower has no personal liability.

 

    	Loan Agreement – SFR	Page 5

     

    

 

		ARTICLE IV	RESERVE FUNDS AND REQUIREMENTS.

 

		4.01	Reserves Generally.

 

		(a)	Establishment of Reserve Funds. Each Reserve Fund
marked in Article I as required or collected will be established on the Closing Date and funded in accordance with this Article
IV. Upon Notice to Borrower following (i) an Event of Default or (ii) a Transfer requiring Lender’s approval under Article
VII, Lender may require Borrower to establish and make deposits into any Reserve Fund marked in Article I as deferred.

 

		(b)	Investment of Reserve Funds. 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. 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. Unless applicable law requires, Lender will not
be required to pay Borrower any interest, earnings or profits on any 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.

 

		(c)	Use of Reserve Funds; No Disbursements during Event
of Default. 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 is established. 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. Lender will not be obligated to make disbursements from any Reserve Fund if any Event of Default
has occurred and is continuing. If an Event of Default has occurred and is continuing, then Lender may use any Reserve Fund for
the payment or performance of any obligation of Borrower to Lender or otherwise with respect to any Mortgaged Property.

 

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

 

		(e)	Release of Mortgaged Properties. Upon the release
of any Mortgaged Property from the applicable Security Instrument pursuant to this Agreement, if Lender determines that all Reserve
Funds are fully funded, Lender will pay to Borrower all funds in any Reserve Funds that relate solely to such Release Property.

 

		4.02	Tax, Insurance, and HOA Fee Reserves.

 

		(a)	Deposits. When required by Lender, Borrower will
deposit with Lender on the Closing Date and on each Payment Date under the Note an additional amount sufficient to accumulate
with Lender the entire sum required to pay, when due, Taxes (“Tax Reserve Fund”) and HOA Fees (“HOA
Reserve Fund”) and 110% of the entire sum required to pay, when due, Insurance premiums (“Insurance Reserve
Fund”).

 

			The amount of each required deposit into the Tax Reserve Fund, the Insurance Reserve Fund and
                                                                                the HOA Reserve Fund must be sufficient to enable Lender to pay the Taxes, Insurance premiums or HOA Fees, as applicable,
                                                                                before the last date upon which the payment may be made without any penalty or interest charge being added with a 10%
                                                                                additional deposit amount with respect to the Insurance Fund.

 

    	Loan Agreement – SFR	Page 6

     

    

 

		(b)	Disbursements.

 

		(i)	Lender willpay Taxes from the Tax Reserve Fund held
by Lender upon Lender’s receipt of a bill or invoice for Taxes and, once received, prior to the addition of any interest,
penalty, or cost for nonpayment. Lender will have no obligation to pay Taxes to the extent the amount payable exceeds the Tax
Reserve Fund then held by Lender. Lender may pay Taxes according to any bill, statement or estimate from either the appropriate
public office or the Borrower without inquiring into the accuracy of the bill, statement or estimate.

 

		(ii)	Lender willpay Insurance premiums from the Insurance
Reserve Fund held by Lender upon Lender’s receipt of a bill or invoice for Insurance premiums and, once received, prior
to the addition of any interest, penalty, or cost for nonpayment. Lender will have no obligation to pay Insurance premiums to
the extent the amount payable exceeds the Insurance Reserve Fund then held by Lender. Lender may pay Insurance premiums according
to any bill, statement or estimate from either an insurance company or the Borrower without inquiring into the accuracy of the
bill, statement or estimate.

 

		(ii)	Lender willpay HOA Fees from the HOA Reserve Fund
held by Lender upon Lender’s receipt of a bill or invoice for HOA Fees and, once received, prior to the addition of any
interest, penalty, or cost for nonpayment. Lender will have no obligation to pay HOA Fees to the extent the amount payable exceeds
the HOA Reserve Fund then held by Lender. Lender may pay HOA Fees according to any bill, statement or estimate from an HOA or
the Borrower without inquiring into the accuracy of the bill, statement or estimate.

 

		(c)	Adjustments to Reserve Fund Deposits. If at any
time the amount of the Tax Reserve Fund, the Insurance Reserve Fund or the HOA Reserve Fund held by Lender for payment of Taxes,
Insurance premiums or HOA Fees exceeds the amount reasonably deemed necessary by Lender, then the excess will be credited against
future payments into the applicable Reserve Fund. If at any time the amount of the Tax Reserve Fund, the Insurance Reserve Fund
or the HOA Reserve Fund is less than the amount reasonably estimated by Lender to be necessary, then Borrower will pay to Lender
the amount of the deficiency within 20 days after Notice from Lender.

 

		(d)	Delivery of Invoices; Proof of Payment by Borrower.
Borrower will promptly deliver to Lender a copy of all notices of, and invoices for, Taxes, Insurance premiums and HOA Fees. If
Lender has not established a Reserve Fund for Taxes, Insurance premiums or HOA Fees, then on or before the date the Taxes, Insurance
premiums or HOA Fees are due, Borrower will provide Lender with proof of payment of the Taxes, Insurance premiums or HOA Fees.

 

		4.03	Special Purpose Reserve Fund.

 

		(a)	Deposit. If a Special Purpose Reserve is required
in Article I, then Borrower will pay to Lender on the Closing Date the amount set forth in Article I (“Special Purpose
Reserve Fund”).

 

		(b)	Disbursements. Lender will disburse the funds
in the Special Purpose Reserve Fund to Borrower when the Release Conditions specified in Exhibit B have been satisfied
in Lender’s discretion.

 

		(c)	Application of Reserve Funds after the Termination
Date. If Borrower has not satisfied the Release Conditions on or before the Termination Date specified in Article I, then
Lender may apply some or all of the Special Purpose Reserve Fund to the Indebtedness, and Borrower will pay a prepayment premium
computed using the formula set forth in the Note with respect to any such prepayment of principal under the Note. Borrower may
not pay the prepayment premium from funds drawn from the Special Purpose Reserve Fund.

 

    	Loan Agreement – SFR	Page 7

     

    

 

		4.04	Capital Replacement and Repair Reserve Fund.

 

		(a)	Monthly Deposits.  If
                                         the Capital Replacement and Repair Reserve Monthly Deposit is shown as collected in Article
                                         I, then on each Payment Date under the Note, Borrower will pay to Lender the Capital
                                         Replacement and Repair Reserve Monthly Deposit amount shown in Article I (“Capital
                                         Replacement and Repair Reserve Fund”).

 

		(b)	Disbursements from Capital Replacement and Repair
Reserve Fund. Lender will disburse funds from the Capital Replacement and Repair Reserve Fund to Borrower for payment or reimbursement
of, or to defray the cost of, each of the following, provided the conditions set forth in Sections 4.04(f) and (g) are satisfied:

 

		(i)	Replacing any of the items listed in Schedule II
and other items that Lender may approve after the Effective Date, subject to any conditions that Lender may require (“Basic
Capital Replacements,” and together with any Additional Capital Replacements listed in Exhibit B, “Capital
Replacements”).

 

		(ii)	Completing the Priority Repairs, provided a Repair Deposit
is required in Article I.

 

		(c)	Additional Capital Replacements Deposit. If an
Additional Capital Replacements Deposit is required in Article I, then on the Closing Date, Borrower will pay the Additional Capital
Replacements Deposit to Lender for deposit into the Capital Replacement and Repair Reserve Fund. The Additional Capital Replacements
Deposit will be available to reimburse Borrower only for reimbursement of, or to defray, the cost of the Additional Capital Replacements
listed in Exhibit B.

 

 Borrower may not displace or relocate tenants to undertake or complete the Additional Capital Replacements unless such displacement or relocation has been approved by Lender. Borrower must complete the Additional Capital Replacements on or before the Additional Capital Replacements Completion Date specified in Article I, as may be extended by Lender in its discretion. Any funds from the Additional Capital Replacements Deposit remaining in the Capital Replacement and Repair Reserve Fund after the Additional Capital Replacements are completed in a manner satisfactory to Lender will be returned to Borrower.

 

		(d)	Repair Deposit. If a Repair Deposit is required
in Article I, then on the Closing Date, Borrower will pay the Repair Deposit to Lender for deposit into the Capital Replacement
and Repair Reserve Fund. The Repair Deposit will be available to reimburse Borrower only for payment or reimbursement of, or to
defray the cost of, completing Priority Repairs. Any funds from the Repair Deposit remainingin the Capital Replacement and Repair
Reserve Fund after all of the Priority Repairs are completed in a manner satisfactory to Lender will be returned to Borrower.

 

		(e)	Insufficient Amount in Capital Replacement and Repair
Reserve Fund. If Borrower requests disbursement from the Capital Replacement and Repair Reserve Fund for a Capital Replacement
or a Priority Repair in an amount that exceeds the amount on deposit in the Capital Replacement and Repair Reserve Fund, then
Lender will disburse to Borrower only the amount on deposit in the Capital Replacement and Repair Reserve Fund. Borrower will
pay all additional amounts required in connection with any such Capital Replacement or Priority Repair from Borrower’s own
funds.

 

		(f)	Limits on Disbursements. Lender will disburse
funds fromthe Capital Replacement and Repair Reserve Fund no more frequently than once per calendar month, and no disbursement
will be made in an amount less than the Capital Replacement and Repair Reserve Fund Disbursement Minimum specified in Article
I.

 

		(g)	Performance of Capital Replacements and Priority Repairs;
Requests for Disbursement.

 

		(i)	If Borrower determines that a Capital Replacement is
necessary or desirable, then Borrower will perform such Capital Replacement and request from Lender, in writing, payment or reimbursement
for the cost of such Capital Replacement from the Capital Replacement and Repair Reserve Fund using the Disbursement Request attached
to this Loan Agreement as Exhibit A. The Disbursement Request must be accompanied by paid invoices or bills that show Borrower
has paid for the applicable Capital Replacement.

 

    	Loan Agreement – SFR	Page 8

     

    

 

		(ii)	Borrower must complete all Priority Repairs pursuant
to Section 6.14. After Borrower performs one or more Priority Repairs, Borrower may request from Lender reimbursement for the
cost of such Priority Repair(s) from the Capital Replacement and Repair Reserve Fund using the Disbursement Request attached to
this Loan Agreement as Exhibit A. The Disbursement Request must be accompanied by paid invoices or bills that show Borrower has
paid for the applicable Priority Repair.

 

		(iii)	If requested by Lender, Borrower must provide any other
information, documents, lien waivers, certifications, or professional engineering reports regarding the work and the cost of such
Capital Replacements or Priority Repairs. Lender, at its option, may retain a professional inspection engineer or other qualified
third party to inspect any Capital Replacement or Priority Repair. If Lender retains such a third party, then it will charge Borrower
an amount sufficient to pay all reasonable costs and expenses charged by such third party inspector. Lender may, at its election,
either deduct such cost from the Capital Replacement and Repair Reserve Fund or send Borrower a Notice of the amount of such charge,
which Borrower must pay within 20 days following its receipt of such Notice.

 

		(iv)	If Lender reasonably determines at any time that a Capital
Replacement or a Repair is necessary for the proper maintenance of a Mortgaged Property, then Lender will give Notice to Borrower
requesting that Borrower obtain and submit to Lender bids for all labor and materials required in connection with such Capital
Replacement or Repair. In response, Borrower will submit such bids and a time schedule for completing each Capital Replacement
or Repair to Lender within 30 days after Borrower’s receipt of Lender’s Notice. Borrower will perform such Capital
Replacement or Repair in conformity with the requirements of this Section 4.04 and then may request reimbursement for such Capital
Replacement or Repair in accordance with this Section 4.04.

 

		(h)	Adjustments
                                         to Reserve Fund Deposits. If the initial term of the Loan is greater than 120 months,
                                         then following each of the 120th and 180th Payment Dates under
                                         the Note, Lender may adjust the amount of the Capital Replacement and Repair Reserve
                                         Monthly Deposit based on Lender’s most recent assessment of the physical condition
                                         of the Mortgaged Properties and will provide Borrower Notice of this revised Capital
                                         Replacement and Repair Reserve Monthly Deposit amount. Borrower will begin paying this
                                         revised Capital Replacement and Repair Reserve Monthly Deposit on the next Payment Date
                                         following its receipt of the Notice from Lender.

 

		ARTICLE V	REPRESENTATIONS AND WARRANTIES.

 

Borrower represents and warrants to Lender as follows as of
the Effective Date:

 

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

 

		5.02	Condition of Mortgaged Properties. Except as Borrower
may have disclosed to Lender in writing in connection with the issuance of the Commitment Letter (which written disclosure may
be in certain written reports accepted by Lender in connection with the funding of the Indebtedness and dated prior to the Effective
Date), no Mortgaged Property has been damaged by fire, water, wind or other cause of loss, or, if so damaged, any previous damage
to a Mortgaged Property has been fully restored.

 

		5.03	No Condemnation. No part of any Mortgaged Property
has been taken in Condemnation or other similar 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 a Mortgaged
Property.

 

    	Loan Agreement – SFR	Page 9

     

    

 

		5.04	Actions; Suits; Proceedings. 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, any Borrower Principal, or any Mortgaged Property which, if adversely determined,
would have a Material Adverse Effect.

 

		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 Effective Date), each of the following
is true:

 

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

 

		(b)	ToBorrower’s knowledge, no Prohibited Activities
or Conditions exist or have existed on any Mortgaged Property.

 

		(c)	NoMortgaged Property contains any underground storage
tanks, and, to Borrower’s knowledge, noMortgaged Property has 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)	Tothe 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.

 

		(e)	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.

 

		(f)	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
any Mortgaged Property or any property that is adjacent to any Mortgaged Property.

 

		5.06	No Labor or Materialmen’s Claims. Except
as described on Exhibit B, Borrower represents and warrants that all parties furnishing labor and materials for which a
Lien or claim of Lien may be filed against any Mortgaged Property have been paid in full and there are no mechanics’, laborers’
or materialmen’s Liens or claims outstanding for work, labor or materials affecting any Mortgaged Property, whether prior
to, equal with or subordinate to the Lien of the Security Instrument, except such Liens or claims that Borrower has disclosed
to both Lender and the title company and which are insured against by the policy of title insurance to be issued in connection
with the Loan.

 

		5.07	Compliance with Applicable Laws and Regulations. Each
of the following is true:

 

		(a)	All Improvements and the use of each 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).

 

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

 

		(c)	Neither Borrower nor any Property Manager has knowledge
of any illegal activities relating to controlled substances on any Mortgaged Property.

 

    	Loan Agreement – SFR	Page 10

     

    

 

		(d)	No Mortgaged Property is (a) zoned for, or being used
for, any purpose other than a one to four unit single-family residential or residential condominium occupancy, (b) an assisted
living facility, or (c) subject to any rent control, rent stabilization or similar law limiting, or placing conditions upon, the
amount of rent that can be charged under a Lease or the ability of a landlord to decline the renewal or extension of a Lease.

 

		5.08	Access; Utilities; Tax Parcels. Each 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 current use of such Mortgaged Property, and (c) constitutes one or more separate tax parcels.

 

		5.09	Licenses and Permits; Property Documents. Borrower
is in possession of all material licenses, permits and authorizations required for use of each Mortgaged Property, which are valid
and in full force and effect as of the Effective Date. The uses being made of each Mortgaged Property are in conformity in all
material respects with all such licenses and permits and all Property Documents for such Property. The certificate of occupancy
for each Mortgaged Property does not permit the use of such Property for any purpose other than as a one to four unit single-family
residential home or residential condominium.

 

		5.10	No Other Interests. No Person has (a) any possessory
interest in any Mortgaged Property or right to occupy any Mortgaged Property except under the provisions of existing Leases by
and between tenants and Borrower, or (b) an option to purchase any Mortgaged Property or an interest in any Mortgaged Property,
except as has been disclosed to and approved in writing by Lender. No Person has any direct ownership interest in Borrower other
than the Pledgor who has executed the Pledge Agreement in favor of Lender.

 

		5.11	Leasing.

 

		(a)	Each Property is either (i) leased by Borrower to and
occupied by an Eligible Tenant pursuant to an Eligible Lease that is in full force and effect and is not in default in any material
respect or (ii) in lease ready condition, meaning that the Mortgaged Property has been cleaned, no renovations or repairs to the
Mortgaged Property are needed and the Mortgaged Property is immediately available to be leased to an Eligible Tenant.

 

		(b)	No Loan Party, Affiliate of any Loan Party or any Immediate
Family Member of any of the foregoing is in occupancy of a Mortgaged Property.

 

		(c)	Borrower has delivered to Lender true and complete copies
of all Leases, and there are no material oral agreements with respect thereto.

 

		(d)	To Borrower’s and each Property Manager’s
knowledge, each Mortgaged Property is being used exclusively as a residential rental property and no illegal activity is taking
place at any Mortgaged Property.

 

		(e)	No Person has any option, right of first refusal, or
any similar preferential right to purchase all or any portion of any Mortgaged Property, whether pursuant to Lease or any other
recorded or unrecorded document.

 

		(f)	Borrower has maintained records of all documentation
collected and all diligence performed in connection with any current or prospective tenant.

 

		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), 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 there has been no prepayment of any Rents for more than 30 days prior
to the due dates of such Rents other than the last month’s Rent, if collected at the time a tenant enters into a Lease.

 

    	Loan Agreement – SFR	Page 11

     

    

 

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

 

		5.14	Taxes and Other Charges Paid. Borrower has filed
all federal, state, county, and municipal tax returns required to have been filed by Borrower, and has paid all Taxes and Other
Charges 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 assessments with respect to such Taxes or Other Charges. To the best of Borrower’s
knowledge after due inquiry and investigation, there are not presently pending any special assessments against any Mortgaged Property
or any part of any 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
insurance policy issued to and accepted by Lender contemporaneously with the execution of this Loan Agreement and insuring Lender’s
interest in each Mortgaged Property (“Permitted Encumbrances”) 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 a Mortgaged Property in the
manner in which the Mortgaged Property is being used on the Effective Date, (c) operation of any Mortgaged Property as a residential
rental property, or (d) value of any 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 Properties, 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.

 

		5.17	ERISA - Borrower Status.

 

		(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.

 

		(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.

 

		5.18	No Fraudulent Transfer or Preference. No Borrower
or Borrower Principal has taken or will take any of the following actions:

 

		(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.

 

		(b)	Transfer of (including any Transfer to or for the benefit
of an insider under an employment contract) 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.

 

    	Loan Agreement – SFR	Page 12

     

    

 

		(c)	Incur 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.

 

		5.19	No Insolvency or Judgment.

 

		(a)	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 unsatisfied judgment that is of record or docketed in any court located in the United States.

 

		(b)	Borrower is not presently insolvent, and the Loan will
not render Borrower insolvent. As used in this Section 5.19, 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.

 

		5.20	Working Capital. After the Loan is made, Borrower
intends to have sufficient working capital, including cash flow from the Mortgaged Properties or other sources, to (a) adequately
maintain the Mortgaged Properties, and (b) 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 Properties
or to pay Borrower’s outstanding debts except as may otherwise be required under their organizational documents.

 

		5.21	Regulatory Agreement. No Mortgaged Property is
subject to a Regulatory Agreement.

 

		5.22	Commercial Purpose; No Right to Residency. Borrower
represents that Borrower is incurring the Indebtedness solely for the purpose of carrying on a business or commercial enterprise,
and not for consumer, personal, family, household or agricultural purposes.

 

		5.23	Prohibited Parties Lists and AML Laws.

 

		(a)	Neither Borrower, and to the best of Borrower’s
knowledge after due inquiry and investigation, no Borrower Principal or Non-U.S. Equity Holder:

 

		(i)	is identified on the OFAC Lists.

 

		(ii)	has been convicted of a violation of the AML Laws or
been the subject of a final enforcement action relating to the AML Laws.

 

		(iii)	Is the subject of any pending proceedings for any violation
of the AML Laws.

 

		(b)	Borrower is not listed, and to the best of Borrower’s
knowledge after due inquiry and investigation, no Borrower Principal is listed, on the FHFA SCP List.

 

		5.24	Internal Controls. Borrower has in place, and
to the best of Borrower’s knowledge after due inquiry and investigation, Borrower has determined that each Borrower Principal
has in place, practices and procedures for the admission of investors which prevent the admission of:

 

		(a)	Anyinvestor that is in violation of any criminal
or civil law or regulation intended to prevent money laundering or the funding of terrorist or illegal drug trafficking activities.

 

		(b)	AnyPerson that will have a 25% or more ownership
interest in Borrower (whether directly or indirectly) that is on the Prohibited Parties Lists.

 

		(c)	AnyNon-U.S. Equity Holder thatis on the OFAC
Lists.

 

		5.25	Crowdfunding. Except as has been disclosed in
writing to and approved in writing by Lender, no direct or indirect ownership (or other economic) interest of 25% or more in the
aggregate in Borrower or any Borrower Principal has been marketed or sold to investors through any form of Crowdfunding.

 

    	Loan Agreement – SFR	Page 13

     

    

 

		5.26	Organizational Structure. The organizational chart
attached as Exhibit D accurately represents the ownership and control of Borrower, Pledgor and Guarantor (if an entity).

 

		5.27	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, as provided in Sections 9.02(b) and 9.02(h).

 

		ARTICLE VI	BORROWER COVENANTS.

 

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

 

		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 Mortgaged Property Jurisdiction.
Borrower will at all times comply with its organizational documents.

 

		6.03	Use of Mortgaged Property. Unless required by
applicable law, without the prior written consent of Lender, Borrower will not take any of the following actions:

 

		(a)	Allow any Mortgaged Property to be used for any purpose
other than a residential rental property.

 

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

 

		(c)	Establish any condominium or cooperative regime with
respect to any Mortgaged Property beyond any that may be in existence on the Effective Date.

 

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

 

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

 

		(f)	Add to or change any location at which any of any collateral
for the Loan 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 or amendment which may be filed in connection with this
Loan Agreement, as Lender may require.

 

		(g)	Permit any Mortgaged Property to be subject to a Regulatory
Agreement.

 

    	Loan Agreement – SFR	Page 14

     

    

 

		6.04	Leasing.

 

		(a)	Borrower will not permit the occupancy of any Property
other than pursuant to an Eligible Lease with an Eligible Tenant.

 

		(b)	Borrower or Property Manager will maintain records of
all documentation collected and all diligence performed in connection with any Tenant and Borrower will provide any such items
to Lender upon Lender’s request, including at least one of the following:

 

		(i)	A credit report from a national credit reporting agency
on each Eligible Tenant (except that no such credit report will be required for any tenant of a Mortgaged Property where the Lease
payment is subsidized with Section 8 vouchers in accordance with HUD guidelines).

 

		(ii)	Other evidence that Borrower or Property Manager has
verified, based on bona fide written documentation, that the tenant has sufficient financial resources to satisfy its obligations
under the Lease for the Mortgaged Property.

 

		(c)	Borrower will not permit a Related Party or any Immediate
Family Member of a Related Party to occupy any Mortgaged Property.

 

		(d)	Borrower will perform the obligations of the lessor under
all Leases, and will enforce, in a commercially reasonable manner, the obligations of the Tenants under such Leases.

 

		(e)	Borrower will not grant or permit Property Manager to
grant any tenant or other Person an option, right of first refusal, or any similar preferential right to purchase all or any portion
of any Mortgaged Property, whether pursuant to a Lease or any other recorded or unrecorded document.

 

		6.05	Prepayment of Rents. Borrower will not collect
any Rent more than 30 days in advance of its due date; provided, that the foregoing restriction will not prevent Borrower from
collecting both the first and last month’s rent contemporaneously with the execution of a Lease in accordance with customary
residential leasing practices.

 

		6.06	Inspection. Borrower authorizes Lender and its
agents, representatives, and designees to enter, at any reasonable time (subject to applicable law and the rights of tenants),
any portion of any Mortgaged Property to inspect, attend to Lender’s interests, and perform any of the acts that Lender
is authorized to perform pursuant to the Loan Documents, including with respect to Restoration, Repairs, and Capital Replacements.

 

		6.07	Books and Records; Financial Reporting.

 

		(a)	Maintenance of Books and Records.

 

		(i)	Borrower will keep and maintain at all times at Borrower’s
main business office or a Mortgaged Property Manager’s office, and upon Lender’s request will make available at such
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 Properties, and copies of all written contracts, Leases, and other instruments that affect
any Mortgaged Property (“Books and Records”).

 

		(ii)	The Books and Records will be kept in accordance with
one of the following accounting methods, consistently applied, and Borrower will promptly provide Lender Notice of any change
in Borrower’s accounting methods:

 

		(A)	Generally accepted accounting principles (GAAP).

 

    	Loan Agreement – SFR	Page 15

     

    

 

		(B)	Tax method of accounting, provided that under the tax
method of accounting, the accrual basis may be used for interest expense, real estate taxes and insurance expense, and the cash
basis will be used for all other items, including income, prepaid rent, utilities and payroll expense. Financial statements may
exclude depreciation and amortization.

 

		(C)	Such other method that is acceptable to Lender.

 

		(iii)	The Books and Records will be subject to examination
and inspection by Lender at any reasonable time with or without prior Notice to Borrower.

 

		(b)	Delivery of Borrower FinancialInformation - Annual
Requirements. Within 90 days after the end of each calendar year (or the end of Borrower’s fiscal year, if Borrower
has adopted fiscal year financial reporting), Borrower will deliver to Lender an annual statement of income and expenses for Borrower’s
operation of the Mortgaged Properties.

 

		(c)	Delivery of Borrower FinancialInformation - Quarterly
Requirement. Within 25 days after the end of each calendar quarter each year (or the end of the second quarter of Borrower’s
fiscal year, if Borrower has adopted fiscal year financial reporting), Borrower will deliver the following to Lender:

 

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

 

		(ii)	a quarterly statement of income and expenses for Borrower’s
operation of the Mortgaged Properties.

 

		(d)	Delivery of Borrower Financial Information - When
Requested by Lender. Within 25 days following a Notice from Lender including a request for such information, Borrower will
deliver the following to Lender:

 

		(i)	The Rent Schedule for any period specified by Lender.

 

		(ii)	A statement of income and expenses for Borrower as of
the end of (A) the quarter that ended at least 30 days prior to the due date of the requested item, and/or (B) the fiscal year
that ended at least 90 days prior to the due date of the requested item.

 

		(iii)	A balance sheet showing all assets and liabilities of
Borrower as of the end of (A) the quarter that ended at least 30 days prior to the due date of the requested item, and/or (B)
the fiscal year that ended at least 90 days prior to the due date of the requested item.

 

		(iv)	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.

 

		(v)	A property management report for the Mortgaged Properties,
showing the number of inquiries made and rental applications received from tenants or prospective tenants and deposits received
from tenants for any period specified by Lender.

 

		(vi)	Copies of Borrower’s state and federal tax returns,
including current tax return extensions.

 

		(vii)	Written updates on the status of all litigation proceedings
that were disclosed or should have been disclosed by Borrower to Lender either (A) as of the Effective Date or (B) during the
term of the Loan pursuant to Section 6.16.

 

    	Loan Agreement – SFR	Page 16

     

    

 

		(viii)	A statement that identifies all owners of any direct
interest in Borrower and any Person(s) that Control(s) Borrower (except that the statement need not identify the owners of a publicly-traded
entity). The statement must identify the percentage and type of ownership or Control interest held by each Person and must also
identify any Non-U.S. Equity Holders.

 

		(ix)	Such other financial information or property management
information as Lender may require (including information on tenants under Leases if such information is available to Borrower
and copies of bank account statements from financial institutions where funds owned or controlled by Borrower are maintained).

 

		(e)	Delivery of Guarantor or Pledgor’s Financial
Information - When Requested by Lender. Within 25 days following a Notice from Lender including a request for such information,
Borrower will cause Guarantor or Pledgor, as applicable, to deliver the following to Lender:

 

		(i)	Its balance sheet and profit and loss statement (or if
such party is a natural person, such party’s personal financial statements) as of the end of (A) the quarter that ended
at least 30 days prior to the due date of the requested items, and/or (B) the fiscal year that ended at least 90 days prior to
the due date of the requested items.

 

		(ii)	Other financial statements as Lender may reasonably require.

 

		(iii)	Written updates on the status of all litigation proceedings
that Guarantor or Pledgor, as applicable, disclosed or should have disclosed to Lender as of the Effective Date.

 

		(iv)	If an Event of Default has occurred and is continuing,
copies of Guarantor’s or Pledgor’s, as applicable, state and federal tax returns, including current tax return extensions.

 

		(f)	Form of Financial Statements. All financial statements
required under this Agreement should be prepared using the template available from Lender, which may be revised from time to time,
or in a format otherwise acceptable to Lender.

 

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

 

		(h)	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)-(f), then Lender will give Notice to
                                                                               Borrower specifying the statements, schedules and reports required by Sections 6.07(b)-(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 an independent certified public accountant
                                                                               acceptable to Lender.

 

		(i)	Reporting Upon Event of Default. If an Event of Default has occurred and is
                                                                               continuing, then Borrower will deliver to Lender upon written demand all Books and Records and other instruments that affect
                                                                               the Mortgaged Properties.

 

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

 

    	Loan Agreement – SFR	Page 17

     

    

 

		6.08	Taxes; Operating Expenses.

 

		(a)	Payment of Taxes and Other Charges. Subject to
the provisions of Section 6.08(c), Borrower will pay or cause to be paid all Taxes and Other Charges when due and before the addition
of any interest, fine, penalty or cost for nonpayment.

 

		(b)	Payment of Operating Expenses and Insurance Premiums.
Subject to the provisions of Section 6.08(d), Borrower will (i) pay the expenses of operating, managing, maintaining and repairing
the Mortgaged Properties (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 prior to the expiration date of
each policy of Insurance.

 

		(c)	Payment of Taxes and Reserve Funds. If Lender
is collecting Tax Reserves pursuant to Article IV, then so long as no Event of Default exists, Borrower will not be obligated
to pay Taxes, but only if Lender holds sufficient Tax Reserves and Borrower has timely delivered to Lender any bills or notices
that it has received with respect to Taxes. Lender will have no liability to Borrower for failing to pay any Taxes if any of the
following conditions exist: (i) any Event of Default has occurred and is continuing, (ii) Lender holds insufficient Tax Reserves
at the time a Tax becomes due and payable, or (iii) Borrower has failed to provide Lender with bills and notices as provided in
this Section 6.08.

 

		(d)	Payment of Insurance and Reserve Funds. If Lender
is collecting Insurance Reserves pursuant to Article IV, then so long as no Event of Default exists, Borrower will not be obligated
to pay Insurance premiums but only if Lender holds sufficient Insurance Reserve Deposits and Borrower has timely delivered to
Lender any bills or premium notices that it has received with respect to Insurance premiums. Lender will have no liability to
Borrower for failing to pay any Insurance premiums if any of the following conditions exist: (i) any Event of Default has occurred
and is continuing, (ii) Lender holds insufficient Insurance Reserve Deposits at the time an Insurance premium becomes due and
payable, or (iii) Borrower has failed to provide Lender with bills and premium notices as provided in this Section 6.08.

 

		(e)	Payment of HOA Fees and Reserve Funds. If Lender
is collecting HOA Reserves pursuant to Article IV, then so long as no Event of Default exists, Borrower will not be obligated
to pay HOA Fees for the applicable Mortgaged Properties but only if Lender holds sufficient HOA Reserve Deposits and Borrower
has timely delivered to Lender any bills or invoices that it has received with respect to HOA Fees. Lender will have no liability
to Borrower for failing to pay any HOA Fees if any of the following conditions exist: (i) any Event of Default has occurred and
is continuing, (ii) Lender holds insufficient HOA Reserve Deposits at the time an HOA Fee becomes due and payable, or (iii) Borrower
has failed to provide Lender with bills and invoices as provided in this Section 6.08.

 

		(f)	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 Taxes or Other
Charges, if: (i) Borrower notifies Lender of the commencement or expected commencement of such proceedings, (ii) no Mortgaged
Property is in danger of being sold or forfeited, (iii) if Borrower has not already paid the Taxes or Other Charges, Borrower
deposits with Lender reserves sufficient to pay the contested Taxes or Other Charges, 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 Taxes or Other Charges.

 

		6.09	Preservation, Management, and Maintenance of Mortgaged
Property.

 

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

 

    	Loan Agreement – SFR	Page 18

     

    

 

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

 

		(c)	Preservation of Mortgaged Property.

 

		(i)	Borrower will promptly restore or repair, in a good and
workmanlike manner, any damaged part of any 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 (A)
no Event of Default has occurred and is continuing, and (B) Lender has elected to apply any available Insurance proceeds and/or
Condemnation awards to the payment of Indebtedness pursuant to Section 6.10(j) or Section 6.11(b).

 

		(ii)	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.

 

		(d)	Alteration of Mortgaged Property - Consent Required.
Before taking any of the following actions (or permitting any tenant or other Person to take any of the following actions, Borrower
must have the prior written consent of Lender:

 

		(i)	Converting any residential unit or common area to non-residential
use.

 

		(ii)	Converting, in whole or in part, any income producing
unit to a non-income producing unit.

 

		(iii)	Displacing or relocating tenants to undertake or complete
any Repair, Capital Replacement, or other Property Improvements, unless such displacement or relocation is required by law.

 

		(iv)	Removing, demolishing or altering any Mortgaged Property
or any part of any Mortgaged Property, including any removal, demolition, or alteration occurring in connection with a rehabilitation of all or part of any Mortgaged Property.

 

		(v)	Modifying the number of bedrooms in any residential unit.

 

		(e)	Alteration of Mortgaged Property - Consent Not Required.
Notwithstanding Section 6.09(d)(iv), Borrower may undertake, or permit a Tenant to undertake, any of the following without the
prior written consent of Lender.

 

		(i)	Repairs and Capital Replacements.

 

		(ii)	Replacement of tangible Personalty.

 

		(iii)	Making an individual unit ready for a new occupant.

 

		(iv)	Preservation and maintenance of a Mortgaged Property
in accordance with Sections 6.09(a) and (d).

 

		(v)	Alterations intended to renovate or upgrade the Mortgaged
Property (“Property Improvement”), provided the Property Improvement complies with Section 6.14 and it does
not:

 

		(A)	Include any of the actions listed in Sections 6.09(d)(i)-(iii)
or (v).

 

    	Loan Agreement – SFR	Page 19

     

    

 

		(B)	Require demolition of any existing Improvements.

 

		(C)	Cause 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 the Property Improvement is underway.

 

		(D)	Have an adverse effect on any major building systems,
including the following:

 

		(1)	Electrical (electrical lines or power upgrades, excluding
fixture replacement).

 

		(2)	HVAC (central and unit systems, excluding replacement
of in kind unit systems).

 

		(3)	Plumbing (supply and waste lines, excluding fixture replacement).

 

		(4)	Structural (foundation, framing, and all building support
elements).

 

		(f)	Property Documents. Borrower will observe and
perform in all material respects each term to be observed or performed by Borrower pursuant to the terms of each Property Document.
Borrower will enforce in a commercially reasonable manner the performance and observance of Property Document, will do all things
reasonably necessary to preserve and to keep unimpaired its material rights thereunder and cause each Mortgaged Property to be
operated in accordance therewith. Borrower will not, without the prior written consent of Lender, consent to the increase of the
amount of any charges under any Property Document or the reduction of any material right thereunder. During the continuance of
an Event of Default Borrower will not exercise any rights, make any decisions, grant any approvals or otherwise take any action
under the Property Documents without Lender’s prior written consent.

 

		(g)	Inspection of Mold. If Lender determines that
Mold has or may have developed as a result of a water intrusion event or leak, then Lender may require that a professional inspector
inspect the applicable 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.

 

		(h)	Property Management. Borrower will provide for
professional management of the Mortgaged Properties by one or more Property Managers at all times under property management agreements
approved by Lender in writing. Without Lender’s prior consent, Borrower will not cancel or modify any property management
agreement, except that Borrower and a Property Manager may renew a property management agreement on identical terms. Borrower
will cause each Property Manager to execute an Assignment of Management Agreement with Borrower and Lender, in a form acceptable
to Lender. If at any time Lender consents to the appointment of one or more new Property Managers, each such new Property Manager(s)
and Borrower will, as a condition of Lender’s consent, execute an Assignment of Management Agreement in a form acceptable
to Lender. As of the Effective Date, Borrower has confirmed that each Property Manager is not on any Prohibited Parties List.
Borrower will confirm at the time of entering into or renewing any property management agreement that each Property Manager is
not on any Prohibited Parties List.

 

		6.10	Insurance.

 

		(a)	Insurance Covenant. Borrower will at all times
during the term of this Loan Agreement maintain, at its sole expense, for the mutual benefit of Borrower and Lender, Insurance
as required by Lender and applicable law, with such endorsements as Lender may reasonably require from time to time and which
are customarily required by institutional lenders for properties comparable to the Mortgaged Properties.

 

    	Loan Agreement – SFR	Page 20

     

    

 

		(b)	Property Insurance. Borrower will maintain Insurance
against relevant physical hazards that may cause damage to the Mortgaged Properties, which Insurance will include coverage against
loss or damage from fire, wind, hail, and other perils within the scope of a “Special Causes of Loss” policy form,
an “All Risk” policy form, or a standard fire insurance policy with a customary extended coverage endorsement that
includes replacement cost valuation, business income/rental value for all relevant perils, and 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”) (collectively, “Property Insurance”). Property Insurance may also include coverage
for other risks that Lender may reasonably require such as earthquake, Named Storm, sinkhole, mine subsidence, and ordinance or
law (if any Mortgaged Property does not conform with applicable building, zoning or land use laws, rules or regulations).

 

		(c)	Liability Insurance. Borrower will maintain commercial
general liability Insurance, which may include workers’ compensation Insurance, and such other liability, errors and omissions,
and fidelity Insurance coverage.

 

		(d)	Builder’s Risk. During any period of construction
or Restoration, Borrower will maintain 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.

 

		(e)	Payment of Premiums. All premiums for Insurance
required under this Section 6.10 will be paid in the manner provided in Article IV and Section 6.08, 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)	AllInsurance policies will be with one or more insurance
companies that are satisfactory to Lender, in a form and with the terms required by Lender, and in amounts and with maximum deductibles
as required by Lender.

 

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

 

		(iii)	All commercial general liability and excess umbrella
liability policies will name Lender and its successors and assigns as an additional insured party.

 

		(iv)	AllProperty Insurance policies will provide that
the insurer will notify Lender in writing of cancellation of policies at least 10 days before the cancellation of the policy by
the insurer for nonpayment of the premium or nonrenewal and at least 30 days before cancellation 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, nonrenewal, cancellation, and other notices received by Borrower with respect to the policies. Borrower will ensure
that the Mortgaged Properties are continuously covered by the required Insurance. Prior to the expiration date of each Insurance
policy, Borrower will deliver to Lender evidence acceptable to Lender that each Insurance policy has been renewed. If the evidence
of a renewal does not include a legible copy of the renewal policy, then Borrower will deliver a legible copy of such renewal
policy no later than the earlier of (i) 60 days after the expiration date of the original policy or (ii) the date of any Notice
of an insured loss given to Lender under Section 6.10(i).

 

    	Loan Agreement – SFR	Page 21

     

    

 

		(h)	Compliance WithInsurance Requirements. Borrower
will comply with all Insurance requirements and will not permit any condition to exist on any 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 will promptly restore or repair the Mortgaged
Property to the equivalent of its original condition or to a condition approved by Lender (“Restoration”),
subject to the limitations of Section 6.09(c)(i).

 

		(iii)	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 toincur any expense or take any action.

 

		(j)	Lender’s OptionsFollowing a Casualty.
Following a casualty, Lender may, at Lender’s option, do any of the following:

 

		(i)	Require a “repair or replacement” settlement,
in which case the proceeds will be used to reimburse Borrower for the cost of 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 residential properties. If Lender 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.

 

		(iii)	If, in Lender’s discretion, the cost of Restoration
following a casualty will equal or exceed 50% of the Release Amount, then Lender may require Borrower to Transfer the Mortgaged
Property to a third-party and pay down the Indebtedness by an amount equal to the Release Amount plus all interest amounts required
under the Note in accordance with Section 7.05(b) of this Agreement. If Lender elects to exercise its option under this Section
6.10(j)(iii), then Lender will provide Borrower with Notice that the Mortgaged Property must be Transferred in accordance with
Section 7.05(b) no later than 30 days following the date of the Notice.

 

		(k)	Borrower’s Rights Following a Casualty.
Subject to Section 6.10(j), and provided no Event of Default has occurred and is continuing, following a casualty, Borrower may
take the following actions:

 

		(i)	If a casualty results in damage to any Mortgaged Property
for which the cost of Repairs required to complete the Restoration will be equal to or less than $20,000, 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 Insurance proceeds are used solely for the Restoration of the applicable Mortgaged Property.

 

    	Loan Agreement – SFR	Page 22

     

    

 

		(ii)	If a casualty results in damage to any Mortgaged Property
for which the cost of Repairs required to complete the Restoration will be more than $20,000, but less than 50% of the Release
Amount for the Mortgaged Property, Borrower is authorized to make proof of loss and adjust and compromise the claim without the
prior consent of Lender, and Lender will, at its option, hold the applicable Insurance proceeds to be used to reimburse Borrower
for the cost of Restoration of the Mortgaged Property.

 

		(iii)	If a casualty results in damage to the Mortgaged Property
for which the cost of Repairs required to complete the Restoration will be equal to or greater than 50% of the Release Amount
for the Mortgaged Property, Borrower must obtain the consent of Lender prior to making any proof of loss or adjusting or compromising
the claim, and Lender will, at its option, hold the applicable Insurance proceeds to be used to reimburse Borrower for the cost
of Restoration of the Mortgaged Property.

 

		(l)	Lender’s Succession to Insurance Policies.
If any Mortgaged Property is sold at a foreclosure sale or Lender acquires title to a Mortgaged Property, then 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 such Mortgaged Property prior to such sale or acquisition.

 

		(m)	Payments 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, or change the amount, of any monthly payments referred to in the Note or Article IV of this Loan Agreement.

 

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

 

		(o)	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 Properties.

 

		(p)	Blanket Policy. The Insurance coverage required
by this Section 6.10 may be effected under a blanket policy or policies covering all the Mortgaged Properties if such blanket
policy has been approved in advance by Lender.

 

		6.11	Condemnation.

 

		(a)	Borrower’s Obligations 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 any 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 any Mortgaged Property caused by governmental action that does not result in a
Condemnation. Borrower agrees to execute such further evidence of assignment of any Condemnation awards or proceeds as Lender
may require.

 

    	Loan Agreement – SFR	Page 23

     

    

 

		(b)	Lender’s Options Following a Condemnation.

 

		(i)	Following a Condemnation, Lender may, at Lender’s
option, (i) hold the Condemnation award or proceeds to be used to reimburse Borrower for the cost of Restoration of the Mortgaged
Property, or (ii) apply the Condemnation award or proceeds to the payment of the Indebtedness, whether or not then due. Unless
Lender otherwise agrees in writing, any application of any Condemnation award to the Indebtedness will not extend or postpone
the due date, or change the amount, of any monthly payments referred to in the Note or Article IV of this Loan Agreement.

 

		(ii)	If, in Lender’s discretion, the cost of Restoration
following a Condemnation will exceed 50% of the Release Amount, then Lender may require Borrower to Transfer the Mortgaged Property
to a third-party and pay down the Indebtedness by an amount equal to the Release Amount plus all interest amounts required under
the Note in accordance with Section 7.05(b) of this Agreement.

 

		(iii)	If Lender elects to exercise its option under Section
6.11(b)(ii), then Lender will provide Borrower with Notice that the Mortgaged Property must be Transferred in accordance with
Section 7.05(b) no later than 30 days following the date of the Notice.

 

		(c)	Borrower’s Rights Following a Casualty.
Subject to Section 6.11, and provided no Event of Default has occurred and is continuing, then following a Condemnation, Borrower
may take the following actions:

 

		(i)	If a Condemnation results in proceeds or awards of $20,000
or less, 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 applicable Mortgaged Property.

 

		(ii)	If a Condemnation results in proceeds or awards of more
than $20,000, but less than 50% of the Release Amount for the Mortgaged Property, Borrower is authorized to make proof of loss
and adjust and compromise the claim without the prior consent of Lender, and Lender will, at its option, hold the applicable Insurance
proceeds to be used to reimburse Borrower for the cost of Restoration of the applicable Mortgaged Property.

 

		(iii)	If a Condemnation results in damage to the Mortgaged
Property for which the cost of Repairs required to complete the Restoration will be equal to or greater than 50% of the Release
Amount for the Mortgaged Property, Borrower must obtain the consent of Lender prior to making any proof of loss or adjusting or
compromising the claim, and Lender will, at its option, hold the applicable Insurance proceeds to be used to reimburse Borrower
for the cost of Restoration of the applicable Mortgaged Property

 

		(d)	Succession to Condemnation Proceeds. If any Mortgaged
Property is sold at a foreclosure sale or Lender acquires title to the Mortgaged Property, then 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. Borrower
will comply with all Hazardous Materials Laws applicable to any Mortgaged Property and will not cause or permit Prohibited Activities
or Conditions.

 

		(b)	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.

 

    	Loan Agreement – SFR	Page 24

     

    

 

		(ii)	Borrower’s receipt of or knowledge of any written
complaint, order, notice of violation or other communication from any tenant, Property Manager, 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 Properties.

 

		(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.

 

		(c)	Lender’s Option following a Hazardous Materials
Event.

 

		(i)	If notwithstanding Borrower’s obligations under
this Section 6.12, Borrower fails to comply with Hazardous Materials Laws applicable to a Mortgaged Property or Prohibited Activities
or Conditions exist at a Mortgaged Property (“Hazardous Materials Event”), then Lender may require Borrower
to Transfer the Mortgaged Property to a third party and pay down the Indebtedness by an amount equal to the Release Amount plus
all interest amounts required under the Note in accordance with Section 7.05(b) of this Agreement.

 

		(ii)	If Lender elects to exercise its option under Section 6.12(c)(i), then Lender will provide
                                                                                Borrower with Notice that the Mortgaged Property must be Transferred in accordance with Section 7.05(b) no later than 30 days
                                                                                following the date of the Notice.

 

		(d)	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 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 8.02. 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, 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.

 

    	Loan Agreement – SFR	Page 25

     

    

 

		(e)	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, then 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, then 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 8.02.

 

		(g)	Borrower Contest of Order. Notwithstanding Section
6.12(e), Borrower may contest the order of any Governmental Authority in good faith through appropriate proceedings, provided
that (i) Borrower has demonstrated to Lender’s satisfaction that any delay in completing Remedial Work pending the outcome
of such proceedings would not (A) result in damage to the Mortgaged Property or to persons who use or occupy the Improvements
or (B) otherwise impair Lender’s interest under this Loan Agreement, and (ii) if any delay in completing the Remedial Work
results in a Lien against the Mortgaged Property, Borrower must promptly furnish to Lender a bond or other security satisfactory
to Lender in an amount not less than 150% of the claim that underlies the Lien.

 

		6.13	Borrower and Pledgor Entity Requirements and Limitations

 

		(a)	Until the Indebtedness is paid in full, Borrower and each
Pledgor will satisfy each of the following requirements:

 

		(i)	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.

 

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

 

		(iii)	It will not take any action to dissolve, wind-up, terminate or liquidate in whole or
                                                                                inpart; to sell, transfer or otherwise dispose of all or substantially all of its assets; to change its legal structure;
                                                                                to 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; to issue additional partnership, membership or
                                                                                other equity interests, as applicable, or to seek to accomplish any of the foregoing.

 

		(iv)	It will not maintain its assets in a way difficult to segregate
and identify.

 

		(v)	Borrower will not acquire, own, hold, lease, operate, manage,
maintain, develop or improve any assets other than the Mortgaged Properties and such Personalty as may be necessary for the operation
of the Mortgaged Properties and will conduct and operate its business as presently conducted and operated. Pledgor will not acquire,
own, hold, lease, operate, manage, maintain, develop or improve any assets other than its ownership interest in Borrower.

 

		(vi)	Borrower will not engage in any business or activity other
than the ownership, operation and maintenance of the Mortgaged Property and activities incidental to such ownership, operation,
and maintenance. Pledgor will not engage in any business or activity other than the ownership of its interest in Borrower.

 

		(vii)	Borrower will not incur or assume any debt other than the
Indebtedness, except that Borrower is permitted to incur unsecured trade payables that are necessary for owning and operating
the Mortgaged Property (“Trade Payables”). The Trade Payables:

 

		(1)	Must not be evidenced by a promissory note.

 

		(2)	Must be paid within 60 days of the date incurred.

 

    	Loan Agreement – SFR	Page 26

     

    

 

		(3)	In the aggregate, at any one time, must not exceed 3% of
the Loan Amount.

 

Pledgor will not incur or assume any debt.

 

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

 

		(ix)	It will identify its assets on its financial statements
separate from those of any other Person.

 

		(x)	Except for the terms of the Pledge Agreement, it will not
guaranty the debts or obligations of, hold itself out to be responsible for the debts of, pledge its assets for the benefit of
or to secure the obligations of, or hold out its credit as being available to satisfy the obligations of, any other Person.

 

		(xi)	Borrower will pay (or cause the Property Manager to pay
on behalf of Borrower from Borrower’s funds) its own liabilities (including salaries of its own employees) from its own
funds; provided, however, that this requirement will not be deemed to require additional capital contributions by Borrower’s
or Pledgor’s members, limited partners, or any Guarantor.

 

		(xii)	It will not enter into any agreement with any affiliate
of any Loan Party except upon commercially reasonable terms and conditions that are comparable to those of an arms-length basis
with unaffiliated third parties.

 

		(xiii)	It will not dissolve, merge, liquidate, consolidate with
any other Person or sell, transfer, dispose, or encumber (except with respect to the Loan Documents) all or substantially all
of its assets.

 

		(xiv)	It will not make any loans or advances to any third party
(including any affiliate of any Loan Party).

 

		(xv)	It will do, all things necessary to observe organizational
formalities and preserve its existence, and it will not, nor will it permit any Person to, (i) terminate or fail to comply with
the provisions of its organizational documents, or (ii) unless Lender has consented, amend, modify or otherwise change its organizational
documents in any material respect.

 

		(xvi)	It will hold itself out to the public as, a legal entity
separate and distinct from any other entity (including any of its affiliates), will correct any known misunderstanding regarding
its status as a separate entity, will conduct business in its own name, will not identify itself or any of its affiliates as a
division or department or part of the other and will maintain and utilize separate stationery, invoices and checks bearing its
own name.

 

		(xvii)	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; provided,
however, that this requirement will not be deemed to require additional capital contributions by Borrower’s or Pledgor’s
members, limited partners, or any Guarantor.

 

		(b)	Borrower represents that it 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.

 

		(c)	Neither Borrower nor Pledgor will change its jurisdiction of formation or name without
                                                                                 receiving Lender’s prior written consent and promptly providing Lender such information and replacement Uniform
                                                                                 Commercial Code financing statements as Lender may reasonably request in connection with such a change.

 

    	Loan Agreement – SFR	Page 27

     

    

 

 

		(d)	Borrower and Pledgor will at all times elect to be treated
as a “partnership” or “disregarded entity” that is not taxable as a corporation for state and U.S. federal
tax purposes.

 

		(e)	Borrower is and will continue to be a single member limited
liability company wholly owned and controlled by Pledgor.

 

		(f)	Pledgor is and will continue to be a limited liability
company formed in Delaware.

 

		6.14	Restoration, Priority Repairs, Capital Replacements,
Property Improvements, and Other Repairs.

 

		(a)	Borrower Obligated to Complete Priority Repairs.
Borrower will commence all Priority Repairs as soon as practicable after the Effective Date and will diligently proceed with and
complete such Repairs.

		 	 

		(b)	Completion Work in Good and Workmanlike Manner.
All (i) Restoration, (ii) Priority Repairs, (iii) Capital Replacements and (iv) Property Improvements and other Repairs Borrower
elects to begin (collectively, “Work”) 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 Properties. 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.

 

		(c)	No Conditional Sales Contracts or Lease Agreements.
Without the prior written consent of Lender, no materials, machinery, equipment, fixtures or any other part of any Work will be
purchased or installed under conditional sale contracts or lease agreements, or any other arrangement wherein title to such Work
or any portion of such Work 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 Work, or to consider them as personal property.

 

		(d)	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 Work,
and will keep the Mortgaged Properties 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.

 

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

 

		(f)	Right to Complete Work. If Borrower abandons or
fails to proceed diligently with any Restoration, Priority Repair, or Capital Replacement or abandons any other Repair or Property
Improvement once undertaken by Borrower, and such abandonment or failure continues for 30 days after Notice from Lender, then
Lender will have the right (but not the obligation) to enter upon any Mortgaged Property and take over and cause the completion
of such Work. However, no such Notice or cure period will apply in the case of such failure which could, in Lender’s discretion,
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 Work and the payment,
settlement or compromise of all bills and claims for materials and work performed in connection with the Work) and do any and
all things necessary or proper to complete any Work, 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 Work, but Lender
may 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. Borrower waives all claims it may
have against Lender for materials used, work performed or resultant damage to a Mortgaged Property.

 

    	Loan Agreement – SFR	Page 28

     

    

 

		(g)	Completion of Work Not a Certification by Lender.
Lender’s disbursement of monies from any Reserve Fund or other acknowledgment of completion of any Work in a manner satisfactory
to Lender will not be deemed a certification by Lender that the Work 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 Work is completed in accordance with all such requirements of any
Governmental Authority.

 

		6.15	Residential Leases.

 

		(a)	All Leases for residential units executed on or after the
Effective Date (including renewals of any existing Leases) will satisfy the following conditions:

 

		(i)	They will be on forms acceptable to Lender.

 

		(ii)	They will not include options to purchase or have purchase
options associated with them.

 

		(iii)	They will be for initial terms of at least 6 months.

 

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

 

		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
after due inquiry and investigation, threatened in writing against Borrower or any Borrower Principal which might have a Material
Adverse Effect.

 

		6.17	Estoppel Certificates; Further Assurances; Lender’s
Expenses. Within 10 days after a request from Lender, 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 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 under any of the 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.

 

    	Loan Agreement – SFR	Page 29

     

    

 

		(b)	Execute, acknowledge and deliver and, if applicable, cause
Guarantor, Pledgor, or Property Manager to execute, acknowledge and deliver, at Borrower’s expense (i) all amendments, modifications,
corrections, deletions or additions to this Loan Agreement, the Note, the Security Instrument and/or any other Loan Document,
and (ii) any further acts, deeds, conveyances, assignments, estoppel certificates, financing statements, transfers and assurances,
as may be required by Lender from time to time in order to correct clerical errors and legal deficiencies and 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
other Loan Documents, or in connection with Lender’s consent rights under Article VII; provided, however, that this Section
6.17 is not intended to require Borrower to execute any corrective amendment or modification of the Loan Documents that has the
effect of (x) changing the essential economic terms of the Loan set forth in the Commitment Letter, or (y) imposing greater liability
under the Loan Documents than that set forth in the terms of the Commitment Letter.

 

		(c)	Borrower agrees that, in connection with each request by
Borrower under this Loan Agreement or any Loan Document, Borrower will pay or reimburse Lender for 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 reimbursement due from Borrower to Lender will become part
of the Indebtedness as provided in Section 8.02.

 

		6.18	ERISA Requirements.

 

		(a)	Borrower will not engage in any transaction which would
cause an action by either Borrower or Lender permitted or required under this Loan Agreement or any other Loan Document to be
a non-exempt prohibited transaction under either ERISA or Section 4975 of the Tax Code.

 

		(b)	When requested by Lender, Borrower will deliver to Lender
a certification from Borrower with supporting evidence satisfactory to Lender that each of the following is true:

 

		(i)	Borrower is not any of the following:

 

		(A)	An “employee benefit plan” as defined in Section
3(3) of ERISA, which is subject to Title I of ERISA.

 

		(B)	A “plan” to which Section 4975 of the Tax Code
applies.

 

		(C)	An entity whose underlying assets constitute “plan
assets” of one or more of the plans described in Sections 6.18(c)(i)(A) and (B).

 

		(D)	A “governmental plan” within the meaning of
Section 3(32) of ERISA.

 

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

 

		(iii)	At least one of the following circumstances is true:

 

		(A)	None of the equity interests in Borrower are held by “benefit
plan investors” within the meaning of Section 3(42) of ERISA.

 

		(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.

 

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

 

    	Loan Agreement – SFR	Page 30

     

    

 

		(D)	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 or any successor provisions.

 

		(E)	Borrower is an investment company registered under the
Investment Company Act of 1940.

 

		6.19	Economic Sanctions Laws: AML Laws. Borrower will
comply with, and will take reasonable measures to ensure that each Borrower Principal will comply with, all Economic Sanctions
Laws and AML Laws. Borrower and each Borrower Principal will have in place practices and procedures for the admission of investors
which prevent the admission of:

 

		(a)	Any Non-U.S. Equity Holder, or any investor that would
have a 25% or more ownership interest in Borrower (whether directly or indirectly), and that has been convicted of a violation
of the AML Laws or been the subject of a final enforcement action relating to the AML Laws.

 

		(b)	Any Person with a 25% or more ownership interest in Borrower
(whether directly or indirectly) that is on the Prohibited Parties Lists.

 

		(c)	Any Non-U.S. Equity Holder that is on the OFAC Lists.

 

		6.20	Crowdfunding. Borrower and each Borrower Principal
will not permit direct or indirect ownership (or other economic) interests of 25% or more in Borrower or any Borrower Principal
that have been marketed or sold to investors through any fund of Crowdfunding.

 

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

 

		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)	A Preapproved Intrafamily Transfer that satisfies the requirements
of Section 7.04.

 

		(e)	A Release Property Transfer or Mandatory Release Property
Transfer that satisfies the requirements of Section 7.05(a) or 7.05(b), as applicable.

 

		(f)	A Transfer that satisfies the requirements of Section 7.06.

 

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

 

		(h)	A Transfer of a Mortgaged Property that has been released
from the applicable Security Instrument pursuant to Section 6.10(j) or Section 6.12(c).

 

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

 

		(j)	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.

 

    	Loan Agreement – SFR	Page 31

     

    

 

		(k)	The creation of a mechanic’s, materialmen’s
or judgment Lien against any Mortgaged Property which is released of record, bonded or otherwise remedied to Lender’s satisfaction
within 60 days after the date of creation or is being contested as otherwise provided in this Loan Agreement; 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 lienholder must act to enforce the Lien) within which to obtain
such release of record or consummate such other remedy.

 

		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 any Mortgaged Property
or any interest in any Mortgaged Property, including the grant, creation or existence of any Lien on a 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 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 of any direct ownership interest in Borrower.

 

		(d)	A Transfer or series of Transfers of any legal or equitable
interest since the Effective Date that result(s) in (a) a change of more than 49% of the indirect ownership interests (or beneficial
interests, if the applicable entity is a trust) in Borrower or (b) a change of more than 49% of the direct or indirect interests
in any Person that Controls Borrower.

 

		(e)	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 if such partnership or
limited liability company, as applicable, is a Person that Controls Borrower.

 

		(f)	If Any Person that Controls Borrower 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.

 

		(g)	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
direct or indirect ownership interest in Borrower or any Person that Controls Borrower, if the foreclosure of such Lien would
result in a Transfer prohibited under Sections 7.02(b), (c), (d), (e), or (f).

 

		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 7.03.

 

		(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 (but excluding a Transfer as
a result of the death of a Borrower that is a natural person) 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 (if applicable) continues to be responsible
for the management of the Mortgaged Properties, and such Transfer will not result in a change in the day-to-day operations of
the Mortgaged Properties.

 

    	Loan Agreement – SFR	Page 32

     

    

 

		(ii)	Lender receives confirmation acceptable to Lender that
Borrower continues to satisfy the requirements of Section 6.13.

 

		(iii)	Following the Transfer, no Non-U.S. Equity Holder or Person
with a direct or indirect interest in Borrower equal to or greater than 25% is on any Prohibited Parties List.

 

		(iv)	Each Guarantor executes such documents and agreements as
Lender requires to ratify each Guaranty, or in the event of the death of any Guarantor, Borrower causes one of the following to
occur:

 

		(A)	Within 60 days following the Guarantor’s death, one
or more Persons acceptable to Lender execute(s) and deliver(s) to Lender a replacement guaranty in a form acceptable to Lender
and in substantially the same form as the Guaranty executed on the Effective 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 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 Effective Date, without any cost or expense to Lender.

 

		(v)	Borrower gives Lender Notice of such Transfer together
with copies of all documents effecting such Transfer not more than 30 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 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.

 

		(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)	Affiliate Transfer. A Transfer of any direct or
indirect interests in Pledgor held by an entity owned and directly or indirectly Controlled by Guarantor to one or more of Guarantor’s
Affiliates (“Affiliate Transfer”) provided that each of the following conditions is satisfied:

 

		(i)	Borrower provides Lender with at least 30 days prior Notice
of the proposed Affiliate Transfer, including organizational charts and documents reflecting the structure of Borrower prior to
and after the proposed Affiliate Transfer.

 

		(i)	At the time of the proposed Affiliate 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.

 

		(ii)	Borrower delivers to Lender a certification that following
the proposed Affiliate Transfer, each of the following conditions will be satisfied:

 

		(A)	Control and management of the day-to-day operations of
Borrower will continue to be held by the Person exercising such Control and management immediately prior to the Affiliate Transfer.

 

    	Loan Agreement – SFR	Page 33

     

    

 

		(B)	No Non-U.S. Equity Holder, and no other person with a direct
or indirect interest in Borrower equal to or greater than 25%, is on any Prohibited Parties List.

 

		(iv)	Borrower and Guarantor execute such additional documents
as Lender may require to evidence the Affiliate Transfer.

 

		(v)	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.

 

		(c)	Publicly-Held Fund or Publicly-Held Real Estate Investment
Trust. If Guarantor 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 Pledgor or Guarantor, if within 30 days following the acquisition, Borrower
does each of the following:

 

		(A)	Provides notice to Lender of that acquisition.

 

		(B)	Complies with each of the following conditions:

 

		(1)	Borrower certifies in writing to Lender that as of the
date of the Transfer either (i) there will be not be any Person with a collective equity interest (whether direct or indirect)
of 25% or more in Borrower or (ii) no Borrower Principal (A) is on any Prohibited Parties Lists, (B) has been convicted of any
violation of the AML Laws, or (C) has been the subject of a final enforcement action relating to the AML Laws.

 

		(2)	Borrower certifies in writing to Lender that as of the
date of the Transfer either (i) there will not be any Non-U.S. Equity Holders, or (ii) no Non- U.S. Equity Holder (A) is on the
OFAC Lists, (B) has been convicted of any violation of the AML Laws, or (C) has been the subject of a final enforcement action
relating to the AML Laws.

 

		(d)	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.

 

		(ii)	Prior to the grant, Lender determines 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 Processing Fee or a Transfer Fee.

 

    	Loan Agreement – SFR	Page 34

     

    

 

		(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.

 

		(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)	That there will be no imposition of a tax under applicable
REMIC provisions as a result of such grant.

 

		7.04	Preapproved Intrafamily Transfers. The occurrence
of a Transfer or a series of Transfers of limited partnership interests or non-managing membership interests that result in a
change of more than a 49% indirect interest in Borrower or a 49% direct or indirect interest in a Person that Controls Borrower
as set forth in this Section 7.04 will be considered a “Preapproved Intrafamily Transfer” if each of the conditions
set forth in Sections 7.04(a) and (b) is satisfied:

 

		(a)	Type of Transfer. The Transfer is one of the following:

 

		(i)	A sale or transfer to one or more of the transferor’s
Immediate Family Members.

 

		(ii)	A sale or transfer to any trust having as its sole beneficiaries
the transferor and/or one or more of the transferor’s Immediate Family Members.

 

		(iii)	A sale or transfer from a trust to any one or more of its
beneficiaries who are the settlor and/or Immediate Family Members of the settlor of the trust.

 

		(iv)	The substitution or replacement of the trustee of any trust
with a trustee who is an Immediate Family Member of the settlor of the trust.

 

		(v)	A sale or transfer from a natural person to an entity owned
and under the Control of the transferor or the transferor’s Immediate Family Members.

 

		(b)	Conditions. The Preapproved Intrafamily Transfer
satisfies each of the following conditions:

 

		(i)	Borrower provides Lender with 30 days prior Notice of the
proposed Preapproved Intrafamily Transfer and pays the Transfer Processing Fee.

 

		(ii)	Following the 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 Transfer
and there is no change in Guarantor, if applicable.

 

		(iii)	Following the Transfer, no Non-U.S. Equity Holder or Person
with a direct or indirect interest in Borrower equal to or greater than 25% is on any Prohibited Parties List.

 

		(iv)	At the time of the Preapproved Intrafamily 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.

 

    	Loan Agreement – SFR	Page 35

     

    

 

		(v)	Borrower pays Lender all of Lender’s costs, including
the cost of all title searches, title insurance and recording costs, and all Attorneys’ Fees and Costs; provided, however,
that Lender will not be entitled to collect a Transfer Fee.

 

		(vi)	Lender receives confirmation acceptable to Lender that
Section 6.13 continues to be satisfied.

 

		7.05	Mortgaged Property Releases.

 

		(a)	The Transfer of one or more of the Mortgaged Properties
(each a “Release Property”) will be considered a “Release Property Transfer” if each of
the conditions set forth in this Section 7.05(a) is satisfied.

 

		(i)	No Release Property Transfers can occur in the six months
immediately prior to the Maturity Date.

 

		(ii)	No Event of Default has occurred and is continuing, except
that if the Release Property Transfer will cure the Event of Default, then the Release Property may be released and the release
of such Release Property will be deemed to cure the applicable Event of Default.

 

		(iii)	No more than two Release Property Transfers can occur in
a calendar year.

 

		(iv)	Borrower has submitted to Lender, not less than 30 days
prior to the proposed Release Property Transfer Date, all the following:

 

		(A)	A Release Property Transfer request substantially in the
form attached to this Loan Agreement as Exhibit C.

 

		(B)	Evidence satisfactory to Lender that the conditions of
this Section 7.05 are or will be satisfied in connection with the Release Property Transfer

 

		(C)	The Release Property Processing Fee.

 

		(v)	The Rent to Debt Service Ratio calculated as of each of
the following dates is equal to or greater than the Required Rent to Debt Service Ratio specified in Article I:

 

		(A)	The last day of the calendar quarter ended immediately
prior to the request for a Release Property Transfer.

 

		(B)	The last day of the month ended immediately prior to the
request for a Release Property Transfer.

 

For the purposes of this Section 7.05, the “Rent
to Debt Service Ratio” means a ratio as calculated by Lender of (a) Rents actually collected by Borrower for the Mortgaged
Properties for the immediately preceding twelve full calendar months, minus the Rents during that period attributable to the Release
Properties to (b) twelve times the amount of principal and interest payable under the Note for the immediately preceding month.

 

		(vi)	The sum of the Mortgaged Properties released in connection
with this and all prior Release Property Transfers does not exceed the Property Release Cap specified in Article I.

 

		(vii)	Borrower, Pledgor, and Guarantor execute such additional
documents as Lender may require to evidence the Release Property Transfer.

 

    	Loan Agreement – SFR	Page 36

     

    

 

		(viii)	The Release Property will be Transferred in exchange for
United States dollars on arms-length terms and conditions to a Person that is not an Affiliate of the Borrower.

 

		(viii)	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 Release Property Transfer.

 

		(ix)	At the time of the Transfer, Borrower pays the Release
Amount to Lender, plus all interest and prepayment premium amounts required under the Note; provided, however, that Lender will
not be entitled to collect a Transfer Processing Fee or a Transfer Fee.

 

		(b)	The required Transfer of one or more of the Mortgaged Properties
following a casualty, condemnation, or Hazardous Materials Event pursuant to Section 6.10(j), 6.11(b), or 6.12(c) (each a “Mandatory
Release Property”) will be considered a “Mandatory Release Property Transfer” if each of the conditions
set forth in this Section 7.05(b) is satisfied.

 

		(i)	Borrower has received notice from Lender that a Mandatory
ReleaseProperty Transfer is required.

 

		(ii)	Borrower, Pledgor, and Guarantor execute such additional
documents as Lender may require to evidence the Mandatory Release Property Transfer.

 

		(iii)	Borrower pays or reimburses Lender, upon demand, for all
costs andexpensesincluding all Attorneys’ Fees and Costs, incurred by Lender in connection with the Mandatory Release
Property Transfer

 

		(iv)	At the time of the Transfer, Borrower pays the Release
Amount to Lender; plus all interest amounts required under the Note; provided, however, that Lender will not be entitled to collect
a Release Property Processing Fee, Transfer Processing Fee, a Transfer Fee, or a prepayment premium.

 

		7.06	Lender’s Consent to Prohibited Transfers. A
Transfer that results in a change in the direct or indirect Control of the Borrower or the Pledgor will not constitute a prohibited
Transfer under Section 7.02 if each of the conditions set forth in this Section 7.06 is satisfied.

 

		(a)	Borrower provides Lender with at least 30 days prior Notice
of the proposed Transfer, including organizational charts and documents reflecting the direct and indirect ownership and Control
of Borrower and Pledgor prior to and after the proposed Transfer, and pays the Transfer Processing Fee.

 

		(b)	At the time of the proposed 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)	No Non-U.S. Equity Holder and no other person with a direct
or indirect interest in Borrower equal to or greater than 25%, is on any Prohibited Parties List.

 

		(d)	Lender determines that each of the following conditions
is satisfied:

 

		(i)	The transferee meets Lender’s eligibility, credit,
management and other standards (including any standards with respect to previous relationships between Lender and the transferee).

 

		(ii)	The transferee’s organization, credit and experience
in the management of similar properties is appropriate to the overall structure and documentation of the Loan.

 

    	Loan Agreement – SFR	Page 37

     

    

 

		(iii)	At the time of the proposed Transfer, all the Mortgaged
Properties meet Lender’s standards as to their physical condition, occupancy, net operating income and the accumulation
of reserves.

 

		(iv)	Following the Transfer, the Mortgaged Properties will be
managed by one or more Property Managers meeting the requirements of Section 6.09(d).

 

		(vii)	Following the Transfer, Borrower and Pledgor will continue
to meet the requirements of Section 6.13.

 

		(e)	Borrower, Pledgor, Guarantor, and transferee(s) execute
such additional documents as Lender may require to evidence the Transfer, provided there will not be 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.

 

		(f)	Lender has received such legal opinions as Lender deems
necessary, including an opinion that the assignment and assumption of the Loan Documents has been duly authorized, executed, and
delivered and that the assignment documents are enforceable as the obligations of Borrower, Pledgor, Guarantor, and transferee(s),
as applicable.

 

		(g)	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 Transfer, and pays
Lender the Transfer Fee.

 

		ARTICLE VIII	EVENTS OF DEFAULT AND REMEDIES.

 

		8.01	Events of Default. The occurrence of any one or more of the followingwill
                                                                                      constitute an “Event of Default” under this Loan Agreement:

 

		(a)	Borrower fails to pay or deposit when due any amountrequired
by the Note, this Loan Agreement or any other Loan Document.

 

		(b)	Borrower or any of its officers, directors, trustees, general
partners, or managers, or any Guarantor, commits fraud or makes a material misrepresentation or material omission in connection
with any of the following:

 

		(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.

 

		(iii)	Any request for Lender’s consent to any proposed
action, including a request for disbursement of funds under this Loan Agreement or a release of a Mortgaged Property.

 

		(c)	Borrower has made any representation or warranty in this
LoanAgreement that is false or misleading in any material respect.

 

		(d)	Borrower fails to maintain the Insurance coverage required
by Section 6.10.

 

		(e)	Borrower fails to comply with the Condemnation provisions
of Section 6.11.

 

		(f)	Borrower fails to comply with the provisions of Section
6.13.

 

		(g)	A Transfer occurs that violates the provisions of Article
VII, whether or not any actual impairment of Lender’s security results from such Transfer.

 

    	Loan Agreement – SFR	Page 38

     

    

 

		(h)	A forfeiture action or proceeding, whether civil or criminal,
is commenced which could result in a forfeiture of any Mortgaged Property or otherwise materially impair the Lien created by the
Security Instrument or Lender’s interest in any Mortgaged Property.

 

		(i)	Reserved.

 

		(j)	Borrower fails to perform any of its obligations under
any PropertyDocuments, and such failure continues beyond any applicable cure period, if any.

 

		(k)	Reserved.

 

		(l)	Any of the following occurs:

 

		(i)	Borrower 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 8.01(l)(i) against Borrower 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 within a period of 90 days
following commencement.

 

		(iii)	Any case, proceeding or other action is commenced against
Borrower 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 of such order.

 

		(iv)	Borrower takes any action in furtherance of, or indicating
its consent to, approval of, or acquiescence in, any of the acts set forth in Section 8.01(l)(i), (ii) or (iii).

 

		(m)	Reserved.

 

		(n)	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, each of whom executes and delivers to Lender a replacement Guaranty in form
and content acceptable to Lender; provided, however, that if Lender determines that any proposed replacement Guarantor is not
acceptable, then the action will constitute a prohibited Transfer governed by Section 7.02.

 

		(iii)	If Borrower must provide a replacement Guarantor pursuant
to Section 8.01(n)(ii), Borrower pays the Transfer Processing Fee to Lender.

 

    	Loan Agreement – SFR	Page 39

     

    

 

		(o)	The dissolution of any Guarantor that is an entity, unless
within 30 days following the dissolution of Guarantor, Borrower causes one or more Persons acceptable to Lender 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
Effective Date, without any cost or expense to Lender.

 

		(p)	The death of any Guarantor who is a natural person, unless
Borrower satisfies one of the conditions set forth in Section 7.03(a)(iii).

 

		(q)	If the Guaranty includes the “Expiring Term of Existence”
rider, the Expiring Guarantor (as defined in the rider) does not comply with any of the requirements in the rider, including extending
its term of existence, providing one or more replacement guarantors, or providing cash or letter of credit collateral for its
obligations under the Guaranty.

 

		(r)	Borrower fails to perform any of its obligations under
this Loan Agreement (other than those Events of Default specified in Sections 8.01(a) through (q) or included on any exhibit,
schedule, or rider attached to this Loan Agreement) as and when required, and that failure continues for a period of 30 days after
Notice of the failure by Lender to Borrower.

 

However, if Borrower’s failure to perform its obligations
as described in this Section 8.01(r) is of the nature that it cannot be cured within the 30-day cure period after Notice from Lender
but reasonably could be cured within 90 days, then Borrower will have additional time as determined by Lender (not to exceed an
additional 60 days) in which to cure the default, provided that Borrower has diligently commenced to cure the default during the
initial 30-day cure period and diligently pursues the cure of the default.

 

No Notice or cure periods will apply in the case of any
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, this Loan Agreement,
or any other security given under any other Loan Document.

 

		(s)	Any Loan Party fails to perform any of its obligations
as and when required under any Loan Document other than this Loan Agreement and that failure continues beyond the applicable cure
period, if any, specified in that Loan Document.

 

		8.02	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 any 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 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 a 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 8.02,
or under any other provision of this Loan Agreement that treats such disbursement as being made under this Section 8.02, 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.

 

    	Loan Agreement – SFR	Page 40

     

    

 

		(c)	Nothing in this Section 8.02 will require Lender to incur
any expense or take any action.

 

		8.03	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 associated costs, 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 UCC, the Loan Documents and under applicable law.

 

		(d)	Lender may also retain all money in the Reserve Funds,
including interest, and in Lender’s 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.

 

		8.04	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 any of the Loan Documents.

 

		(iii)	Release anyone liable for the payment of any amounts due
under any of the Loan Documents.

 

		(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 any 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 payments payable under the Note.

 

		(x)	Otherwise modify this Loan Agreement, the Note or any other
Loan Document.

 

    	Loan Agreement – SFR	Page 41

     

    

 

		(b)	Any forbearance by Lender in exercising any right or remedy
under any of the Loan Documents, 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 of remedies by Lender 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.

 

		8.05	Waiver of Marshalling. Notwithstanding the existence
of any other security interests in the Mortgaged Properties 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 Properties 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 owns or acquires a security interest in any Mortgaged Property and who has actual or constructive notice of the
Security Instrument waives any and all right to require the marwilling of assets or to require that any Mortgaged Property be
sold in the inverse order of alienation or that any 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.

 

		8.06	Severance.

 

		(a)	During the continuance of an Event of Default, Lender will
have the right from time to time to partially foreclose any Security Instrument or the Lien of any of the other Loan Documents
in any manner and for any amounts secured by the Loan Documents then due and payable as determined by Lender, including the following
circumstances: (A) if Borrower defaults beyond any applicable grace period in the payment of one or more required payments of
principal and interest, Lender may foreclose one or more of the Security Instruments or other Loan Documents to recover such delinquent
payments, or (B) if Lender elects to accelerate less than the entire outstanding principal balance of the Loan, Lender may foreclose
one or more of the Security Instruments or other Loan Documents to recover so much of the principal balance of the Loan as Lender
may accelerate and such other sums secured by the Mortgages and the other Loan Documents as Lender may elect. Notwithstanding
one or more partial foreclosures, the collateral for the Loan will remain subject to the Security Instruments and the other Loan
Documents to secure payment of the sums secured by the Loan Documents and not previously recovered.

 

		(b)	During the continuance of an Event of Default, Lender will
have the right from time to time to sever the Note and the other Loan Documents into one or more separate notes, Loan Documents
and other security documents in such denominations as Lender will determine for purposes of evidencing and enforcing its rights
and remedies provided under the Loan Documents. Borrower will execute and deliver to Lender from time to time, promptly after
the request of Lender, a severance agreement and such other documents as Lender will request in order to effect the severance
described in the preceding sentence, all in form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and
irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute
all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney will do
by virtue thereof; provided, however, Lender will not make or execute any such documents under such power until
three days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such power.

 

		ARTICLE IX	RELEASE; INDEMNITY.

 

		9.01	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, or 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.

 

    	Loan Agreement – SFR	Page 42

     

    

 

		9.02	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
any Mortgaged Property to comply with the laws, regulations, ordinances, codes or decrees of any Governmental Authority, including
those pertaining to the Americans with Disabilities Act, zoning, occupancy and subdivision of real property, (ii) failure of Borrower
or any Borrower Principal to comply with the Economic Sanction Laws or AML Laws, or (iii) any obligation of Borrower under any
Lease, and (iv) any accident, injury or death to any natural person on any Mortgaged Property or any damage to personal property
located on any 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.

 

		(iv)	The presence or alleged presence of Hazardous Materials
on or under any 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 DISCRETION) THAT LENDER MAY INCUR,
DIRECTLY OR INDIRECTLY, AS A RESULT OF DEFAULT UNDER SECTION 6.18. THIS INDEMNITY WILL SURVIVE ANY TERMINATION, SATISFACTION OR
FORECLOSURE OF THE SECURITY INSTRUMENT.

 

		(d)	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 IX 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, Lender
will permit Borrower to undertake the actions referenced in this Article IX 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.

 

    	Loan Agreement – SFR	Page 43

     

    

 

		(e)	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.

 

		(f)	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.

 

		(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 any of the Loan Documents.

 

		(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.

 

		(g)	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 arising out of any matters against which Indemnitees
are entitled to be indemnified under this Article IX.

 

		(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 IX.

 

		(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 IX, or in monitoring and participating in any legal or administrative proceeding.

 

		(h)	Other Obligations. The provisions of this Article IX 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 IX without regard to whether Lender or that Indemnitee has
                                                                                 exercised any rights against the Mortgaged Properties or any of them 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, then the obligation of those Persons to indemnify the Indemnitees under this Article IX will be joint and
                                                                                 several. The obligation of Borrower to indemnify the Indemnitees under this Article IX 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 of record of the Lien of the Security Instrument. However, if Lender has never been a
                                                                                 mortgagee-in-possession of, or held title to, the Mortgaged Properties or any of them, Borrower will have no obligation to
                                                                                 indemnify the Indemniteesunder this Article IX 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.

 

    	Loan Agreement – SFR	Page 44

     

    

 

		ARTICLE X	MISCELLANEOUS PROVISIONS.

 

		10.01	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.

 

		10.02.	Governing Law; Consent to Jurisdiction and Venue.The
partiesintend that Lender will assign the Loan, the Loan Agreement, the Security Instruments, the Pledge Agreement andthe
other Loan Documents to the Federal Home Loan Mortgage Corporation, a congressionally-chartered government-sponsored enterprise
having its principal place of business in McLean, Virginia. This Agreement will be governed by and construed in accordance with
the laws of the Commonwealth of Virginia. Borrower submits to the in personam jurisdiction of any federal or state court
in (i) any state or jurisdiction in which any Mortgaged Property is located and (ii) the Commonwealth of Virginia with respect
to any proceeding arising out of or relating to this Agreement. Borrower irrevocably waives, to the fullest extent permitted under
applicable law, any objections Borrower may now or hereafter have to the venue of any suit, action or proceeding brought in any
such court and any claim that the same has been brought in an inconvenient forum. Borrower acknowledges that the foregoing venue
provision is integral to Lender’s realization of its rights hereunder. Borrower further acknowledges that it is not in a
disparate bargaining position, that it is a commercial enterprise, with sophisticated financial, legal and economic experience,
and that the venue selections contained in this Agreement are not unreasonable, unjust, inconvenient or overreaching.

 

		10.03	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 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 shown in Article I.

 

		(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
10.03. Each party agrees that it will not refuse or reject delivery of any Notice given in accordance with this Section 10.03,
that it will acknowledge, in writing, the receipt of any Notice upon request by the other party and that any Notice that it rejects
or refuses will be deemed for purposes of this Section 10.03 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 any other Loan Document that does not
specify how Notices are to be given will be given in accordance with this Section 10.03.

 

		10.04	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.

 

    	Loan Agreement – SFR	Page 45

     

    

 

		10.05	Joint and Several (and Solidary) Liability. If
more than one Person signs this Loan Agreement as Borrower, then 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, then the obligations
of such Persons will 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.”

 

		10.06	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. Any arrangement between Lender
and any Loan Servicer for loss sharing or interim advancement of funds (“Servicing Arrangement”) will constitute
a contractual obligation of such Loan Servicer that is independent of the obligation of Borrower for the payment of the Indebtedness.
Borrower will not be a third party beneficiary of any Servicing Arrangement. No payment by the Loan Servicer under any Servicing
Arrangement will reduce the amount of the Indebtedness.

 

		10.07	Subrogation. If the proceeds of the Loan, or subsequent
advances under Section 8.02, are used to pay, satisfy or discharge a Prior Lien, then 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.

 

		10.08	Severability. 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.

 

		10.09	Amendments. This Loan Agreement may not be amended
or modified except by a writing signed by the party against whom enforcement is sought.

 

		10.10	Disclosure of Information; Authorization to Publicly
Use Loan Information.

 

		(a)	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 (if applicable) 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, a Mortgaged
Property, Borrower or any Guarantor, as Lender determines necessary or desirable and that such information may be included in
disclosure documents in connection with a Securitization (if applicable) 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.

 

		(b)	Borrower agrees that Lender may publicly use, at Lender’s
discretion, photographs of the Mortgaged Property, and basic transaction information (for example, the number of units in a Mortgaged
Property and the Loan Amount) relating to the Loan.

 

    	Loan Agreement – SFR	Page 46

     

    

 

		10.11	Determinations by Lender. In any instance where
the consent or approval of Lender may be given or is required, or where Lender is authorized to render any determination, judgment,
or decision 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 option and in
its discretion.

 

		10.12	Sale of Note; Change in Loan 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, then Borrower will be
given Notice of the change. The Loan Servicer may take all actions regarding the servicing of the Loan unless Borrower receives
Notice to the contrary, including the collection of payments, the disbursement and application of Reserve Funds, the giving and
receipt of Notice, inspections of the Mortgaged Properties, inspections of Books and Records, and the granting of consents and
approvals. If Borrower receives conflicting Notices regarding the identity of the Loan Servicer or any other subject, then any
such Notice from Lender will govern.

 

		10.13	Reserved.

 

		10.14	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, at its expense, agrees to cooperate with all 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.

 

		(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 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 as required in Section 6.16.

 

		(e)	Reviewing information contained in any Disclosure
Document and providing a mortgagor estoppel certificate, written confirmation of Borrower’s indemnification obligations
under this Loan Agreement, and such other information about Borrower, any Guarantor, any Pledgor, any Property Manager, or the
Mortgaged Properties as Lender may require for Lender’s offering materials.

 

Notwithstanding anything set forth above in this Section 10.14,
Borrower will not be required to execute any document that changes the interest rate, the Maturity Date or the Amortization Period
set forth in the Note, or that modifies or amends any essential economic terms of the Loan.

 

		10.15	Cooperation with Rating Agencies and Investors.
If Lender decides to include the Loan as an asset of a Secondary Market Transaction, then 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 Properties.

 

		(b)	Permit Lender or its representatives to provide related
information to the Rating Agencies and/or investors.

 

    	Loan Agreement – SFR	Page 47

     

    

 

		(c)	Cooperate with the reasonable requests of the Rating
Agencies and/or investors in connection with all of the foregoing.

 

Notwithstanding anything set forth above in this Section 10.14,
Borrower will not be required to execute any document that changes the interest rate, the Maturity Date or the Amortization Period
set forth in the Note, or that modifies or amends any essential economic terms of the Loan.

 

		10.16	Exhibits, Schedules, and Riders. This Loan
Agreement incorporates all the attached exhibits, schedules, and riders that are listed in Article I or elsewhere in this Loan
Agreement.

 

		10.17	Reserved.

 

		10.18	Time is of the Essence. Time is of the essence
with respect to each covenant of this Loan Agreement.

 

		10.19	Construction; Interpretation.

 

		(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. 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.

 

		(b)	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.

 

		(c)	Use of the singular in this Loan Agreement includes
the plural and use of the plural includes the singular. The use of one gender includes the other gender, as the context may require.

 

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

 

		(e)	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.

 

		(f)	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.

 

		10.20	Right to Apply Proceeds in Connection with Releases.
For so long as the Loan or any portion of the Loan is included in a Securitization, then each of the following will apply:

 

		(a)	Notwithstanding anything to the contrary contained
herein or in any other Loan Document, if any Mortgaged Property is released from the Lien of the Loan in connection with a casualty,
Condemnation or Transfer and if the ratio of (A) the unpaid principal balance of the Loan to (B) the value of the Mortgaged Properties
(taking into account only the related land and buildings and not any personal property or going-concern value), as determined
by Lender in its discretion based on a commercially reasonable valuation method permitted in connection with a Securitization,
is greater than 125% immediately after such casualty, Condemnation or Transfer and before any Restoration or Repair of any Mortgaged
Property (but taking into account any planned Restoration or repair ofthe Mortgaged Property as if such plannedRestoration
orrepair were completed), then Lender will apply any net proceeds or awards from such casualty, Condemnation or Transfer,
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 that a different application of such 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.

 

    	Loan Agreement – SFR	Page 48

     

    

 

		(b)	If neither Borrower nor Lender has the right to receive
any or all of the net proceeds or awards as a result of the provisions of any agreement affecting any Mortgaged Property (including
any condominium document or reciprocal easement agreement) and, therefore cannot apply such net proceeds or awards to the payment
of the principal of the Indebtedness as set forth above, then Borrower will prepay the Indebtedness in an amount which Lender,
in its 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 casualty, Condemnation, or Transfer.

 

		ARTICLE XI	DEFINED TERMS.

 

Capitalized terms used but not otherwise defined in this Loan
Agreement have the following definitions:

 

“Affiliate” of any Person means (i) any other
individual or entity that is, directly or indirectly, (A) in Control of the applicable Person, (B) under the Control of the applicable
Person or (C) under common Control with the applicable Person; (ii) any individual that is a director or officer of the applicable
Person or (iii) any individual that is a director or officer of any entity described in clause (i) of this definition.

 

“Allocated Loan Amount” means, with respect
to each Mortgaged Property, an amount equal to the portion of the Loan made with respect to such Mortgaged Property, as set forth
on Schedule I.

 

“Amortization Period” is defined in the Note.se

 

“AML Laws” means applicable federal anti-money
laundering laws and regulations including 18 U.S.C. 1956 and 1957, as amended.

 

“Assignment of Management Agreement” means
each Assignment of Management Agreement and Subordination of Management Fees among Borrower, a Property Manager and Lender, executed
pursuant to the terms of this Loan Agreement.

 

“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 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.

 

“Bankruptcy Event” with respect to any Person,
means the occurrence of any of the following:

 

		(a)	Such Person voluntarily files for bankruptcy protection
under the Bankruptcy Code.

 

		(b)	Such Person 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.

 

		(c)	Any Mortgaged Property becomes an asset in a voluntary
bankruptcy or becomes subject to any voluntary reorganization, receivership, insolvency proceeding, or other similar voluntary
proceeding pursuant to any other federal or state law affecting debtor and creditor rights.

 

		(d)	An order of relief is entered against such Person
pursuant to the Bankruptcy Code or other federal or state law affecting debtor and creditor rights in any involuntary bankruptcy
proceeding initiated or joined in by a Related Party. If such Person, any general partner of such person if such Person is a general
partnership, any Guarantor, or any Related Party has solicited creditors to initiate or participate in such a proceeding, regardless
of whether any of the creditors solicited actually initiates or participates in the proceeding, then such proceeding will be considered
as having been initiated by a Related Party.

 

    	Loan Agreement – SFR	Page 49

     

    

 

		(e)	Aninvoluntary bankruptcy or other involuntary
insolvency proceeding is commenced against such Person (by a party other than Lender) but only if such Person has failed to use
commercially reasonable efforts to dismiss such proceeding or has consented to such proceeding. “Commercially reasonable
efforts” will not require any direct or indirect interest holders in such Person to contribute or cause the contribution
of additional capital to such Person.

 

		(f)	If such Person is a general partnership, any of the
following occur:

 

		(i)	Any general partner of such Person voluntarily files
for bankruptcy protection under the Bankruptcy Code.

 

		(ii)	Any general partner of such Person 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.

 

		(iii)	An order of relief is entered against any general partner of such Person pursuant to the
                                                                                     Bankruptcy Code or other federal or state law affecting debtor and creditor rights in any involuntary bankruptcy proceeding initiated or joined in by
a Related Party.

 

		(viii)	An involuntary bankruptcy or other involuntary insolvency
proceeding is commenced against any general partner of such Person (by a party other than Lender) but only if such Person or such
general partner of such Person has failed to use commercially reasonable efforts to dismiss suchproceeding or has consented
to such proceeding. “Commercially reasonable efforts” will not require
any direct or indirect interest holders in such Person or such general partner of such Person to contribute or cause the contribution
of additional capital to such Person.

 

“Books and Records” is defined in Section
6.07(a).

 

“Borrower” means all Persons identified as
“Borrower” on page 1 of this Loan Agreement, together with their successors and assigns.

 

“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% (if Borrower is an entity) (iv) any trustee of Borrower (if Borrower is
a trust), or (v) any Guarantor.

 

“BusinessDay” means any day other than
a Saturday,a Sunday,orany other day on which Lender or the national banking associations are not open for business.

 

“Claim” is defined in Section 9.02(e).

 

“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.

 

“Condemnation” is defined in Section 6.11(a).

 

    	Loan Agreement – SFR	Page 50

     

    

 

“Condemnation Prepayment Amount” is defined
in Section 6.11(b).

 

“Control” means to possess, directly or indirectly
through one or more intermediate entities, the power to direct or cause the direction of the management, operation, 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.

 

For example, a trustee of a trust is a Person that Controls
that trust; a general partner in a limited partnership is a Person that Controls that limited partnership; a managing member or
a non-member manager of a limited liability company is a Person that Controls that limited liability company; members of a limited
liability company with a voting interest that permits them (individually or collectively) to direct or control the decisions of
the limited liability company are Persons that Control that limited liability company; every general partner in a general partnership
or member in a joint venture is a Person that Controls that entity; a shareholder of a corporation that holds 50% or more of the
shares in the corporation (whether individually or in the aggregate with its Affiliates) is a Person that Controls that corporation.

 

“Crowdfunding” means the practice of funding
a project or venture by raising capital by either of the following methods:

 

		(i)	Via general solicitation (i.e., marketing directed
to the public at large, whether via the internet or otherwise) that (A) names Freddie Mac, or (B) names or contains any information
about the Mortgaged Property.

 

		(ii)	From unaccredited investors in a public offering (e.g.,
under the related exemptions of Title III or Title IV of the Jumpstart Our Business Startups (JOBS) Act.

 

“Default Rate” is defined in the Note.

 

“Disclosure Document” is defined in Section
10.10.

 

“Economic Sanctions Laws” means the foreign
assets control regulations, 31 C.F.R. Chapter V, as amended, and any amending federal legislation or executive order relating thereto,
as administered by OFAC.

 

“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 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, then the Loan Servicer must move the Eligible Account
within 30 days of such event to an appropriately rated Eligible Institution.

 

“Eligible Lease” means, unless otherwise
approved by Lender, a written Lease that satisfies all of the following characteristics:

 

		(i)	It is on a form approved by Lender.

 

		(ii)	It is executed by an Eligible Tenant and Borrower,
or Property Manager on behalf of Borrower (or, in the case of a Lease existing on the Closing Date, such Lease has been assigned
to Borrower).

 

    	Loan Agreement – SFR	Page 51

     

    

 

		(iii)	It has a rental rate and terms consistent with existing
local market rates and terms.

 

		(iv)	As of the date the Lease was executed, the Lease had
an initial term of at least 6 months and not more than 2 years.

 

		(v)	It complies with all applicable law in all material
respects and includes all disclosures required by applicable law.

 

		(vi)	It covers 100% of the square footage of the applicable
Mortgaged Property or Unit.

 

		(vii)	It does not include any purchase option, right of
refusal, right of first offer or other similar interest in any Property in favor of any Tenant or other Person.

 

“Eligible Tenant” means a bona fide third-party
lessee of a Mortgaged Property who satisfies each of the following criteria:

 

		(i)	Borrower or Property Manager has verified, based on
bona fide written documentation, that the tenant has sufficient financial resources to satisfy its obligations under the Lease
for the Mortgaged Property.

 

		(ii)	The tenant is not subject to an ongoing Bankruptcy
Event as such date of initial screening (or if not so initially screened, as of the Closing Date).

 

		(iii)	The tenant is not a Loan Party, Affiliate of any Loan
Party, or any Immediate Family Member of any of the foregoing.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended, and any successor provision.

 

“Fixtures” is defined in the Security Instrument.

 

“FHFA” means the Federal Housing Finance
Authority.

 

“FHFA SCP List” means the Suspended Counterparty
List maintained by the FHFA which is currently published at https://www.fhfa.gov/SupervisionRegulation/LegalDocuments/suspendedcounterpartyprogram.

 

“Freddie Mac” means the Federal Home Loan
Mortgage Corporation.

 

“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, which has or acquires jurisdiction over any Mortgaged Property, or the use, operation or improvement of any Mortgaged
Property, or over Borrower.

 

“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 Effective Date are set forth in Article I.

 

“Guaranty” means the Guaranty (whether one
or more) 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 friable; underground or above-ground storage tanks, whether empty or containing any
substance; any substance the presence of which on any Mortgaged Property is prohibited by any Governmental Authority; 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.

 

    	Loan Agreement – SFR	Page 52

     

    

 

“Hazardous Materials Event” is defined in
Section 6.12(c).

 

“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 any 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.

 

“HOA” means a homeowners or condominium association,
board, corporation or similar entity with authority to create a Lien on a Mortgaged Property as a result of the non-payment of
HOA Fees that are payable with respect to such Mortgaged Property.

 

“HOA Fees” means all homeowner’s and
condominium dues, fees, assessments and impositions, and any other charges levied or assessed or imposed against a Mortgaged Property,
or any part thereof, by an HOA.

 

“HOA Reserve Fund” is defined in Section
4.02(a).

 

“Immediate Family Members” means a Person’s
spouse, parent (including step-parent), child (including stepchild), grandchild (including step-grandchild) or sibling (including
step-siblings).

 

“Improvements” is defined in the Security
Instrument.

 

“Indebtedness” means (i) the principal of,
(ii) interest at the fixed or variable rate set forth in the Note on the principal of, and (iii) all other amounts due at any time
under, the Note, this Loan Agreement or any other Loan Document, including prepayment charges, late charges, default interest,
and advances to protect the security of the Security Instrument as provided in Section 8.02.

 

“Insurance” means Property Insurance, liability
insurance and all other insurance that Lender requires Borrower to maintain pursuant to this Loan Agreement.

 

“Insurance Reserve Fund” is defined in Section
4.02(a).

 

“Land” means the land described in Exhibit
A to the Security Instrument(s).

 

“Leases” is defined in the Security Instrument(s).

 

“Lender” means the entity identified as “Lender”
on page 1 of this Loan Agreement, or any subsequent holder of the Note.

 

“Lien” means any mortgage, deed of trust,
deed to secure debt, security interest or other lien or encumbrance on any Mortgaged Property or any direct or indirect ownership
interest in Borrower.

 

“Loan” is defined on page 1 of this Loan
Agreement.

 

“Loan Documents” means the Note, the Security
Instrument(s), the Pledge Agreement, this Loan Agreement, the Guaranty, any Assignment of Management Agreement, all other guaranties,
all indemnity agreements, all collateral agreements, UCC filings and any other documents now or in the future executed by Borrower,
any Guarantor or any other Person in connection with the Loan.

 

“Loan Party” means Borrower, each Guarantor
and the Pledgor.

 

“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(s),
the Pledge Agreement this Loan Agreement and any other Loan Document, and otherwise to service the Loan for the benefit of Lender.

 

    	Loan Agreement – SFR	Page 53

     

    

 

“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.

 

“Material Adverse Effect” means a significant
detrimental effect on: (i) the Mortgaged Properties taken as a whole, (ii) the business, prospects, profits, operations or condition
(financial or otherwise) of Borrower, (iii) the enforceability, validity, perfection or priority of the Lien of any Loan Document,
or (iv) the ability of Borrower to perform any obligations under any Loan Document.

 

“Maturity Date” is defined in the Note.

 

“Mold” means mold, fungus, microbial contamination
or pathogenic organisms.

 

“Mortgaged Property” means, individually,
and “Mortgaged Properties” means, collectively, the residential real properties encumbered by the Security Instruments.

 

“Non-U.S. Equity Holder” means any Person
with a collective equity interest (whether direct or indirect) of 10% or more in Borrower, and which is either (a) an individual
who is not a citizen of the United States, or (b) an entity formed outside the United States.

 

“Note” means the Note (including any Amended
and Restated Note, Consolidated, Amended and Restated Note, or Extended and Restated Note) evidencing the Indebtedness executed
by Borrower in favor of Lender and dated as of the Effective Date, including all schedules, riders, allonges and addenda.

 

“Notice” or “Notices”
means all notices, demands, Lender approvals, and other communication required under the Loan Documents, provided in accordance
with the requirements of Section 10.03.

 

“OFAC” means the U.S. Department of the Treasury’s
Office of Foreign Assets Control.

 

“OFAC Lists” means either one of the following:

 

		(i)	The OFAC Specially Designated Nationals and Blocked
Persons List.

 

		(ii)	The OFAC Consolidated Sanctions List.

 

“Other Charges” means, (i) all rent and other
payments owing to any ground lessor or to any holder of any superior interest in a Mortgaged Property, (ii) HOA Fees and (iii)
any other charges levied or assessed or imposed against a Property, or any part thereof, other than Taxes.

 

“Payment Date” has the meaning given to it
in the Note.

 

“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” is defined in the Security Instrument(s).

 

“Pledge Agreement” the Pledge Agreement (whether
one or more) executed by Pledgor.

 

“Pledgor” means the Person who own 100% of
the direct interests in Borrower, which interest is pledged to the Lender pursuant to the Pledge Agreement. The required Pledgor
as of the Effective Date is set forth in Article I.

 

“Preapproved Intrafamily Transfer” is defined
in Section 7.04.

 

“Prepayment” is defined in the Note.

 

    	Loan Agreement – SFR	Page 54

     

    

 

“Principal” is defined in the Note.

 

“Prior Lien” means a pre-existing mortgage,
deed of trust or other Lien encumbering the Mortgaged Property.

 

“Priority Repairs” are identified in Exhibit
B.

 

“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 a Mortgaged Property.

 

		(ii)	The transportation of any Hazardous Materials to,
from or across a Mortgaged Property.

 

		(iii)	Any occurrence or condition on a Mortgaged Property,
which occurrence or condition is or may be in violation of Hazardous Materials Laws.

 

The term “Prohibited Activity or Condition” excludes
the safe and lawful use and storage of each of the following materials, so long as the materials are used, stored, handled, transported,
and disposed of in compliance with Hazardous Materials Laws:

 

		(A)	Prepackaged supplies, cleaning materials, and petroleum
products customarily used in the operation and maintenance of comparable properties.

 

		(B)	Cleaning materials, personal grooming items, and other
items sold in pre-packaged containers for consumer use and used by tenants and occupants of residential units in the Mortgaged
Properties.

 

		(C)	Petroleum products used in the operation and maintenance
of motor vehicles from time to time located on the Mortgaged Property’s parking areas.

 

“Prohibited Parties List” means any one or
more of the following:

 

		(i)	The OFAC Lists.

 

		(ii)	The FHFA SCP List.

 

“Property Document” means each agreement
relating to a Mortgaged Property and each other instrument binding on any Mortgaged Property, including any reciprocal easement
agreement, declaration of covenants, conditions and restrictions and any condominium or home owner’s association governing
documents, rules and regulations.

 

“Property Improvement” is defined in Section
6.09(e)(v)

 

“Property Jurisdiction” means the jurisdiction
in which the Land is located for any particular Mortgaged Property.

 

“Property Manager” or “Property
Managers” means the Person(s) that manage the Mortgaged Properties as of the Effective Date as listed in Article I, or
other residential rental property manager(s) approved by Lender to manage the Mortgaged Properties.

 

“Rating Agencies” means Fitch, Inc., Moody’s
Investors Service, Inc., or Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., Kroll
Bond Rating Agency, Inc. or any successor entity of the foregoing, or any other nationally recognized statistical rating organization.

 

“Regulatory Agreement” means any recorded
or unrecorded agreement with a Regulatory Agreement Agency that encumbers any Mortgaged Property and which imposes use, occupancy
and/or rent restrictions on any Mortgaged Property and/or its operation.

 

    	Loan Agreement – SFR	Page 55

     

    

 

“Regulatory Agreement Agency” means a Governmental
Authority, acting through any authorized representative, or any quasi-governmental authority, that is entitled to enforce the provisions
of a Regulatory Agreement that encumbers any Mortgaged Property.

 

“Related Party”means all the following:

 

		(i)	Borrower.

 

		(ii)	Any generalpartner of Borrower if Borrower is
a general partnership.

 

		(iii)	Any Guarantor.

 

		(iv)	Any Person that holds, directly or indirectly, any
ownership interest (including any shareholder, member or partner) in Borrower, any general partner of Borrower if Borrower
is a general partnership, any Guarantor, or any Person that has a right to manage Borrower, any general partner of Borrower if
Borrower is a general partnership, or any Guarantor.

 

		(v)	Any Person in which Borrower, any general partner
of Borrower if Borrower is a general partnership, or any Guarantor has any ownership interest (direct or indirect) or right to
manage.

 

		(vi)	Any Person in which any partner, shareholder, or member
of Borrower, any general partner of Borrower if Borrower is a general partnership, or any Guarantor has an ownership interest
or right to manage.

 

		(vii)	Any Person in which any Person holding an interest
in Borrower, any general partner of Borrower if Borrower is a general partnership, or any Guarantor also has any ownership interest.

 

		(viii)	Any creditor of Borrower that is related by blood,
marriage or adoption to Borrower or any Guarantor.

 

		(ix)	Any creditor of Borrower or any general partner of
Borrower if Borrower is a general partnership that is related to any partner, shareholder or member of, or any other Person holding
an interest in, Borrower, any general partner of Borrower if Borrower is a general partnership, or any Guarantor.

 

“Release Amount” means one of the following,
as applicable:

 

		(i)	For a Release Property where there is no continuing
Event of Default, 115% of the Allocated Loan Amount for such Mortgaged Property.

 

		(ii)	For a Release Property where there is a continuing
Event of Default, the greater of 115% of the Allocated Loan Amount for such Mortgaged Property and 100% of Transfer Proceeds for
such Mortgaged Property.

 

		(iii)	For a Mandatory Release Property, 100% of the Allocated
Loan Amount for such Mortgaged Property.

 

“Release Cap” - means the number of Mortgaged
Properties that are eligible for release under Section 7.05 and set forth in Article I.

 

“Release Property” is defined in Section
7.05.

 

“Release Property Processing Fee” means a
nonrefundable fee of $400 for Lender’s review of a proposed Release Property Transfer.

 

“Rent(s)” is defined in the Security Instrument(s).

 

    	Loan Agreement – SFR	Page 56

     

    

 

“Rent Schedule” means a written schedule
for the Mortgaged Properties 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.
The Rent Schedule should be prepared using the template available from Lender, which may be revised from time to time, or in a
format otherwise acceptable to Lender.

 

“Repairs” means all repairs made to the Mortgaged
Properties, including all Priority Repairs.

 

“Replacement Cost” means the estimated replacement
cost of the Improvements, Fixtures, and Personalty, excluding any deduction for depreciation, all as determined annually by Borrower
using customary methodology and sources of information acceptable to Lender. Replacement Cost will not include the cost to reconstruct
foundations or site improvements, such as driveways, parking lots, sidewalks, and landscaping.

 

“Required Rent to Debt Service Ratio” means
the ratio set forth in Article I.

 

“Reserve Fund” means the Tax Reserve Fund,
Insurance Reserve Fund, Special Purpose Reserve Fund, Capital Replacement and Repair Reserve Fund, HOA Reserve Fund, and any other
account established pursuant to Article IV.

 

“Restoration” is defined in Section 6.10(i).

 

“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 the 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 a transaction in which
the Note or any portion of the Note is assigned to a REMIC or grantor trust.

 

“Security Instrument” means the mortgage(s),
deed(s) of trust, deed(s) to secure debt or other similar security instrument(s) encumbering one or more Mortgaged Properties and
securing Borrower’s performance of its Loan obligations, including Borrower’s obligations under the Note and this Loan
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).

 

“Tax Code” means the Internal Revenue Code
of the United States, 26 U.S.C. Section 1 et seq.

 

“Tax Reserve Fund” is defined in Section
4.02(a).

 

“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, including any payments made in lieu of Taxes.

 

“Transfer” means any of the following: (i)
a sale, assignment, transfer or other disposition or divestment of any direct or indirect interest in Borrower, a Person that Controls
Borrower, or a 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), (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 and (vi) a change of 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.

 

    	Loan Agreement – SFR	Page 57

     

    

 

“Transfer” does not include any of the following:
(i) a conveyance of a Mortgaged Property at a judicial or nonjudicial foreclosure sale under the Security Instrument, (ii) a Mortgaged
Property becoming part of a bankruptcy estate by operation of law under the Bankruptcy Code or (iii) the filing or recording of
a Lien against a Mortgaged Property for local taxes and/or assessments not then due and payable.

 

“Transfer Date” means the date upon which
a Transfer of a Mortgaged Property is consummated.

 

“Transfer Expenses” means, with respect to
the Transfer of any Property, the reasonable expenses of Borrower incurred in connection therewith (not to exceed six percent (6.00%)
of all gross amounts realized), for any of the following: (i) third party real estate commissions, (ii) the closing costs of the
purchaser of such Property actually paid by Borrower and (iii) Borrower’s miscellaneous closings costs, including title,
escrow and appraisal costs and expenses.

 

“Transfer Fee” means a fee paid when the
Transfer is completed. Unless otherwise specified, the Transfer Fee will be 1% of the outstanding principal balance of the Indebtedness
as of the date of the Transfer.

 

“Transfer Proceeds” means, with respect to
the Transfer of any Property, the gross sales price for such Property (including any earnest money, down payment or similar deposit
included in the total sales price paid by the purchaser), less Transfer Expenses.

 

“Transfer Processing Fee” means a nonrefundable
fee of $15,000 for Lender’s review of a proposed or completed Transfer.

 

“UCC” means the Uniform Commercial Code as
promulgated in the applicable jurisdiction.

 

“Unit” means each separate legal address
comprising all or part of a Mortgaged Property.

 

“Work” is defined in Section 6.14(b)

 

    	Loan Agreement – SFR	Page 58

     

    

 

Reven Housing Funding 1, LLC, as Borrower

 

	By:	/s/ Thad Meyer	 
	Name: 	Thad Meyer	 
	Title: 	Chief Financial Officer	 

 

 

    	Loan Agreement – SFR	Page 1

     

    

 

Arbor Agency Lending, LLC, as Lender

 

	By:  	/s/ Adam Dratch	 
	Name: 	Adam Dratch	 
	Title: 	VP. Closing	 

 

    	Loan Agreement – SFR	Page 2EX-10.1

 Exhibit 10.1 

Execution Version 

LOAN AND SECURITY AGREEMENT 

THIS LOAN AND SECURITY AGREEMENT is made and dated as of March 20, 2019 and is entered into by and among CONSTELLATION PHARMACEUTICALS,
INC., a Delaware corporation, together with its Subsidiaries that deliver a Joinder Agreement pursuant to Section 7.13 of this Agreement (hereinafter collectively referred to as, the “Borrower”), the several banks and other financial
institutions or entities from time to time parties to this Agreement (collectively, referred to as “Lender”) and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and collateral agent for itself and
the Lender (in such capacity, the “Agent”). 
 RECITALS 

A.    Borrower has requested Lender to make available to Borrower a loan in an aggregate principal amount of up to Forty
Million Dollars ($40,000,000) (the “Term Loan”); and 
 B.    Lender is willing to make the Term Loan on the
terms and conditions set forth in this Agreement. 
 AGREEMENT 

NOW, THEREFORE, Borrower, Agent and Lender agree as follows: 

SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION 

1.1    Unless otherwise defined herein, the following capitalized terms shall have the following meanings:

 “Account Control Agreement(s)” means any agreement entered into by and among the Agent, Borrower and a third party Bank or
other institution (including a Securities Intermediary) in which Borrower maintains a Deposit Account or an account holding Investment Property and which perfects Agent’s first priority security interest in the subject account or accounts. 

“ACH Authorization” means the ACH Debit Authorization Agreement in substantially the form of Exhibit I, which account numbers shall
be redacted for security purposes if and when filed publicly by the Borrower. 
 “Advance(s)” means a Term Loan Advance. 

“Advance Date” means the funding date of any Advance. 

“Advance Request” means a request for an Advance submitted by Borrower to Agent in substantially the form of Exhibit A, on
which request account numbers shall be redacted for security purposes if and when filed publicly by the Borrower. 

 “Affiliate” means (a) any Person that directly or indirectly controls, is
controlled by, or is under common control with the Person in question, (b) any Person directly or indirectly owning, controlling or holding with power to vote twenty percent (20%) or more of the outstanding voting securities of another Person,
or (c) any Person twenty percent (20%) or more of whose outstanding voting securities are directly or indirectly owned, controlled or held by another Person with power to vote such securities. As used in the definition of “Affiliate,”
the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

“Agent” has the meaning given to it in the preamble to this Agreement. 

“Agreement” means this Loan and Security Agreement, as amended from time to time. 

“Amortization Date” means May 1, 2021.  

“Anti-Corruption Laws” shall mean all laws, rules, and regulations of any jurisdiction applicable to Borrower or any of its
Affiliates from time to time concerning or relating to bribery or corruption, including without limitation the United States Foreign Corrupt Practices Act of 1977, as amended, the UK Bribery Act 2010 and other similar legislation in any other
jurisdictions. 
 “Anti-Terrorism Laws” means any laws, rules, regulations or orders
relating to terrorism or money laundering, including without limitation Executive Order No. 13224 (effective September 24, 2001), the USA PATRIOT Act, the laws comprising or implementing the Bank Secrecy Act, and the laws administered by
OFAC. 
 “Assignee” has the meaning given to it in Section 11.13. 

“Blocked Person” means any Person: (a) listed in the annex to, or is otherwise subject to the provisions of, Executive Order
No. 13224, (b) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (c) a Person with which any Lender is
prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law, (d) a Person that commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order No. 13224, or
(e) a Person that is named a “specially designated national” or “blocked person” on the most current list published by OFAC or other similar list. 

“Borrower Products” means all products, software, service offerings, technical data or technology currently being designed,
manufactured or sold by Borrower or which Borrower intends to sell, license, or distribute in the future including any products or service offerings under development, collectively, together with all products, software, service offerings, technical
data or technology that have been sold, licensed or distributed by Borrower since its incorporation. 

  
 2 

 “Business Day” means any day other than Saturday, Sunday and any other day on
which banking institutions in the State of New York are closed for business. 
 “Cash” means all cash, cash equivalents and liquid
funds. 
 “Cash Interest Reduction Amount” has the meaning set forth in Section 2.2(c)(iii). 

“Change in Control” means any reorganization, recapitalization, consolidation or merger (or similar transaction or series of related
transactions) of Borrower, sale or exchange of outstanding shares (or similar transaction or series of related transactions) of Borrower in which the holders of Borrower’s outstanding shares immediately before consummation of such transaction
or series of related transactions do not, immediately after consummation of such transaction or series of related transactions, retain shares representing more than fifty percent (50%) of the voting power of the surviving entity of such transaction
or series of related transactions (or the parent of such surviving entity if such surviving entity is wholly owned by such parent), in each case without regard to whether Borrower is the surviving entity. 

“Claims” has the meaning given to it in Section 11.10. 

“Closing Date” means the date of this Agreement. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Collateral” means the property described in Section 3. 

“Compliance Certificate” means a Compliance Certificate substantially in the form of Exhibit F hereto. 

“Confidential Information” has the meaning given to it in Section 11.12. 

“Contingent Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person
with respect to (i) any Indebtedness, lease, dividend, letter of credit or other obligation of another Person, including any such obligation directly or indirectly guaranteed, endorsed, co-made or
discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued
for the account of that Person; and (iii) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to
protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course
of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support
arrangement. 

  
 3 

 “Copyright License” means any written agreement granting any right to use any
Copyright or Copyright registration, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 

“Copyrights” means all copyrights, whether registered or unregistered, held pursuant to the laws of the United States of
America, any State thereof, or of any other country. 
 “Deposit Accounts” means any “deposit accounts,” as such term is
defined in the UCC, and includes any checking account, savings account, or certificate of deposit. 
 “Domestic Subsidiary” means
any Subsidiary that is not a Foreign Subsidiary. 
 “Due Diligence Fee” means $35,000, which fee has been paid to Lender as of the
Closing Date, and shall be deemed fully earned and non-refundable on the Closing Date regardless of the early termination of this Agreement. 

“End of Term Charge” means any end of term charge payable pursuant to Section 2.6. 

“Equity Interests” means, with respect to any Person, the capital stock, partnership or limited liability company interest, or other
equity securities or equity ownership interests of such Person. 
 “ERISA” means the Employee Retirement Income Security Act of
1974, as amended, and the regulations promulgated thereunder. 
 “Event of Default” has the meaning given to it in Section 9.

 “Excluded Account” means the following accounts which are disclosed in writing to Agent on the Closing Date or the next
Compliance Certificate required to be delivered pursuant to Section 7.1(d) hereof for any such accounts opened on or after the Closing Date: (i) accounts used solely to fund payroll or employee benefits, provided that the aggregate funds
in such accounts shall not exceed the amount to be paid in the ordinary course of business in the then-next payroll cycle, (ii) withholding tax, benefits, trust, escrow, or fiduciary accounts, (iii) accounts pledged to the extent permitted
pursuant to clause (xiv) of the definition of Permitted Liens, (iv) zero balance accounts, (v) accounts held by the MSC Subsidiary and (vi) other Accounts that have an aggregate balance not to exceed Fifty Thousand Dollars
($50,000.00) for all such Accounts at any time. 
 “Excluded Taxes” means any of the following Taxes imposed on or with respect to
a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of
such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are
Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a 

  
 4 

 
Loan or Term Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Term Commitment or (ii) such Lender changes its lending
office, except in each case to the extent that, pursuant to Section 2.9, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately
before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.9(g) and (d) any withholding Taxes imposed under FATCA. 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is
substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory
legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among governmental authorities and implementing such Sections of the Code. 

“Financial Statements” has the meaning given to it in Section 7.1. 

“Foreign Lender” means any Lender that is not a U.S. Person. 

“Foreign Subsidiary” means any Subsidiary other than a Subsidiary organized under the laws of any state within the United States of
America. 
 “GAAP” means generally accepted accounting principles in the United States of America, as in effect from time to time.

 “Indebtedness” means all of the following: (a) all indebtedness for borrowed money or the deferred purchase price of
property or services (excluding trade credit entered into in the ordinary course of business due within one hundred eighty (180) days), including reimbursement and other obligations with respect to surety bonds and letters of credit,
(b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations, (d) equity securities of any Person subject to repurchase or redemption other than at the sole option of such Person,
(e) “earnouts”, purchase price adjustments, profit sharing arrangements, deferred purchase money amounts and similar payment obligations or continuing obligations of any nature arising out of purchase and sale contracts, in each case
to the extent not paid when due, and (f) all Contingent Obligations. 
 “Indemnified Taxes” means (a) Taxes, other than
Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes. 

“Initial Facility Charge” means Two Hundred Fifty-Five Thousand Dollars ($255,000). 

“Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy
or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other similar relief. 

  
 5 

 “Intellectual Property” means all of Borrower’s Copyrights; Trademarks;
Patents; Licenses; trade secrets and inventions; mask works; Borrower’s applications therefor and reissues, extensions, or renewals thereof; and Borrower’s goodwill associated with any of the foregoing, together with Borrower’s rights
to sue for past, present and future infringement of Intellectual Property and the goodwill associated therewith. 
 “Investment”
means any beneficial ownership (including stock, partnership or limited liability company interests) of or in any Person, or any loan, advance or capital contribution to any Person or the acquisition of all, or substantially all, of the assets of
another Person, other than strategic alliances that could not result in the formation, whether intentional or not, of any legal entity or other Person under applicable law. 

“IRS” means the United States Internal Revenue Service. 

“Joinder Agreements” means for each Subsidiary, a completed and executed Joinder Agreement in substantially the form attached hereto
as Exhibit G. 
 “Lender” has the meaning given to it in the preamble to this Agreement. 

“License” means any Copyright License, Patent License, Trademark License or other license of rights or interests. 

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien
or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional sale or other title retention agreement, and any lease in the nature of a security interest. 

“Loan” means the Advances made under this Agreement. 

“Loan Documents” means this Agreement, the Notes (if any), the ACH Authorization, the Account Control Agreements, the Joinder
Agreements, all UCC Financing Statements, the Pledge Agreement and any other documents executed in connection with the Secured Obligations or the transactions contemplated hereby, as the same may from time to time be amended, modified, supplemented
or restated. 
 “Material Adverse Effect” means a material adverse effect upon: (i) the business, operations, properties,
assets or financial condition of Borrower and its Subsidiaries taken as a whole; or (ii) the ability of Borrower to perform or pay the Secured Obligations in accordance with the terms of the Loan Documents, or the ability of Agent or Lender to
enforce any of its rights or remedies with respect to the Secured Obligations; or (iii) the Collateral or Agent’s Liens on the Collateral or the priority of such Liens. 

“Maximum Rate” shall have the meaning assigned to such term in Section 2.3. 

  
 6 

 “Maximum Term Loan Amount” means Forty Million and No/100 Dollars ($40,000,000).

 “MSC Investment Conditions” means that Borrower maintains Unrestricted Cash in an amount equal to or greater than the lesser of
(i) the aggregate outstanding Secured Obligations or (ii) 100% of the consolidated Cash of Borrower and its Subsidiaries. 
 “MSC
Subsidiary” means a wholly-owned Subsidiary incorporated in the Commonwealth of Massachusetts or the State of Delaware for the purpose of holding Investments as a Massachusetts security corporation under 830 CMR 63.38B.1 of the Massachusetts
tax code and applicable regulations (as the same may be amended, modified or replaced from time to time). 

“Non-Disclosure Agreement” means that certain Confidential Disclosure Agreement by and
between Constellation Pharmaceuticals, Inc. and Hercules Capital, Inc. dated as of November 20, 2018. 
 “Note(s)” means a
Term Note. 
 “OFAC” is the U.S. Department of Treasury Office of Foreign Assets Control. 

“OFAC Lists” are, collectively, the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to Executive
Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) and/or any other list of terrorists or other restricted Persons maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Executive Orders. 

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between
such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security
interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document). 

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise
from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are
Other Connection Taxes imposed with respect to an assignment. 
 “Patent License” means any written agreement granting any right
with respect to any invention on which a Patent is in existence or a Patent application is pending, in which agreement Borrower now holds or hereafter acquires any interest. 

“Patents” means all letters patent of, or rights corresponding thereto, in the United States of America or in any other country, all
registrations and recordings thereof, and all applications for letters patent of, or rights corresponding thereto, in the United States of America or any other country. 

  
 7 

 “Performance Milestone” means satisfaction of each of the following events:
(a) no default or Event of Default shall have occurred and be continuing; and (b) Borrower shall have received after the Closing Date and on or prior to March 31, 2020, an amount equal to at least Fifty Million Dollars ($50,000,000)
in unrestricted (including, not subject to any redemption, clawback, escrow or similar encumbrance or restriction other than in the case the Permitted Convertible Debt Financing) net cash proceeds from one or more bona fide equity financings,
Subordinated Indebtedness (which, for the avoidance of doubt, may include the net proceeds received from any Permitted Convertible Debt Financing) and/or upfront or other milestone proceeds from business development transactions permitted under this
Agreement, in each case subject to verification by Agent (including supporting documentation reasonably requested by Agent).  

“Permitted Convertible Debt Financing” means issuance by Borrower of convertible notes in an aggregate principal amount of not more
than Two Hundred Fifty Million Dollars ($250,000,000); provided that for so long as any portion of the Secured Obligations remain outstanding such convertible notes shall (a) have a scheduled maturity date no earlier than one
hundred eighty (180) days after the Term Loan Maturity Date, (b) be unsecured, (c) not be guaranteed by any Subsidiary of Borrower, (d) contain usual and customary subordination terms for underwritten offerings of senior
subordinated convertible notes and (e) shall specifically designate this Agreement and all Secured Obligations as “designated senior indebtedness” or similar term so that the foregoing subordination terms referred to in clause
(d) of this definition specifically refer to such notes as being subordinated to the Secured Obligations pursuant to such subordination terms. 

“Permitted Indebtedness” means: (i) Indebtedness of Borrower in favor of Lender or Agent arising under this Agreement or any
other Loan Document; (ii) Indebtedness existing on the Closing Date which is disclosed in Schedule 1A; (iii) Indebtedness of up to $500,000 outstanding at any time secured by a Lien described in clause (vii) of the defined term
“Permitted Liens,” provided such Indebtedness does not exceed the cost (including any customary fees or other charges) of the Equipment financed with such Indebtedness; (iv) Indebtedness to trade creditors incurred in the ordinary
course of business, including Indebtedness incurred in the ordinary course of business with corporate credit cards; (v) Indebtedness that also constitutes a Permitted Investment; (vi) Subordinated Indebtedness; (vii) reimbursement
obligations in connection with letters of credit and cash management services (including credit cards, debit cards and similar instruments) that are secured by Cash and issued on behalf of the Borrower or a Subsidiary thereof and Cash deposits in
connection with real estate leases in the ordinary course of business, collectively in an aggregate amount not to exceed $2,000,000 at any time outstanding, (viii) other Indebtedness in an amount not to exceed $250,000 at any time outstanding,
of which an amount not to exceed $50,000 may be secured by Liens permitted under clause (xvii) of the definition of “Permitted Liens”, (ix) intercompany Indebtedness as long as each of the Subsidiary obligor and the Subsidiary obligee
under such Indebtedness is a Subsidiary that has executed a Joinder Agreement,(x) guarantees of any items of Permitted Indebtedness; (xi) Permitted Convertible Debt Financing, (xii) Indebtedness arising in respect of endorsements of
instruments or other payment items for deposit in the ordinary course of business, (xiii) Indebtedness owed to any Person providing property, casualty or liability insurance to either Borrower or any Subsidiary, so long as (i) such
Indebtedness shall not be in 

  
 8 

 
excess of the amount of the unpaid cost of, and shall be incurred only to defer the cost of, unpaid premiums for such insurance for the annual period in which such Indebtedness is incurred,
(xiv) Indebtedness of either Borrower and its respective Subsidiaries arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of
business; provided that such Indebtedness is extinguished within five (5) Business Days after receipt of notice of its incurrence, (xv) Indebtedness under or in respect of surety bonds, appeal bonds, performance and return-of-money bonds, workers’ compensation claims, self-insurance obligations or bankers’ acceptances incurred in the ordinary course of business in connection
with bids, leases and similar commercial contracts, (xvi) Indebtedness representing deferred compensation, severance, pension and health and welfare retirement benefits or the equivalent thereof to current and former employees of either
Borrower or its Subsidiaries incurred in the ordinary course of business or in connection with Permitted Investments, not to exceed $500,000 in the aggregate in any fiscal year and (xvii) extensions, refinancings and renewals of any items of
Permitted Indebtedness, provided that the principal amount is not increased (except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing) or the
terms modified to impose materially more burdensome terms upon any Borrower or its Subsidiary, as the case may be. 
 “Permitted
Investment” means: (i) Investments (including Subsidiaries) existing on the Closing Date which are disclosed in Schedule 1B or Schedule 5.14, as applicable; (ii) (a) marketable direct obligations issued or unconditionally guaranteed
by the United States of America or any agency or any State thereof maturing within one year from the date of acquisition thereof, (b) commercial paper maturing no more than two years from the date of creation thereof and at the time of the
Investment having a rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s Investors Service, (c) certificates of
deposit issued by any bank with assets of at least $500,000,000 maturing no more than two years from the date of investment therein, (d) money market accounts, and (e) such other Investments as are described in the investment guidelines
approved by Borrower’s board of directors and delivered to Agent prior to the Closing Date or with such changes made after the Closing Date and approved by Agent in writing; (iii) repurchases of stock from former employees, directors, or
consultants of Borrower under the terms of applicable repurchase agreements at the original issuance price of such securities in an aggregate amount not to exceed $250,000 in any fiscal year, provided that no Event of Default has occurred, is
continuing or would exist after giving effect to the repurchases; (iv) Investments accepted in connection with Permitted Transfers; (v) Investments (including debt obligations) received in connection with the bankruptcy or reorganization
of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s business; (vi) Investments consisting of notes receivable of, or prepaid
royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business, provided that this subparagraph (vi) shall not apply to Investments of Borrower in any Subsidiary;
(vii) Investments consisting of loans not involving the net transfer on a substantially contemporaneous basis of cash proceeds to employees, officers or directors relating to the purchase of capital stock of Borrower pursuant to employee stock
purchase plans or other similar agreements approved by Borrower’s board of directors; (viii) Investments consisting of travel advances, employee relocation loans and other employee loans and advances in the ordinary course of business, not
to exceed $250,000 in any 

  
 9 

 
fiscal year; (ix) Investments in newly-formed Domestic Subsidiaries, provided that each such Subsidiary enters into a Joinder Agreement promptly after its formation by Borrower and execute
such other documents as shall be reasonably requested by Agent within the time frame set forth in Section 7.13; (x) Investments in Foreign Subsidiaries approved in advance in writing by Agent; (xi) joint ventures or strategic alliances in
the ordinary course of Borrower’s business consisting of the exclusive or nonexclusive licensing of technology, or the development of technology or the providing of technical support or similar activities, provided that any such licensing of
Borrower’s technology is a Permitted Transfer hereunder; provided further that the aggregate cash Investments by Borrower in joint ventures and strategic alliances that result in the formation, whether intentional or not, of any legal entity or
other Person under applicable law, do not exceed $1,000,000 in the aggregate in any fiscal year; (xii) the in-licensing of Intellectual Property in the ordinary course of business; provided that the
payments made by Borrower and its Subsidiaries shall not exceed $2,000,000 in the aggregate for all such licenses in any fiscal year; (xiii) Investments consisting of the endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business; (xiv) Investments in the MSC Subsidiary, so long as an Event of Default does not exist at the time of such Investment and would not exist after giving effect to such Investment and
provided that Borrower is, at all times, in compliance with the MSC Investment Conditions and (xv) additional Investments that do not exceed $250,000 in the aggregate. 

“Permitted Liens” means any and all of the following: (i) Liens in favor of Agent or Lender; (ii) Liens existing on the
Closing Date which are disclosed in Schedule 1C; (iii) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings; provided, that Borrower
maintains adequate reserves therefor in accordance with GAAP; (iv) Liens securing claims or demands of materialmen, artisans, mechanics, carriers, warehousemen, landlords and other like Persons arising in the ordinary course of Borrower’s
business and imposed without action of such parties; provided, that the payment thereof is not yet required; (v) Liens arising from judgments, decrees or attachments in circumstances which do not constitute an Event of Default hereunder;
(vi) the following deposits (including by way of deposits to secure letters of credit issued to secure the same), to the extent made in the ordinary course of business: deposits under worker’s compensation, unemployment insurance, social
security and other similar laws, or to secure the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure indemnity, performance or other similar bonds for the performance of bids, tenders or contracts
(other than for the repayment of borrowed money) or to secure statutory obligations (other than Liens arising under ERISA or environmental Liens) or surety or appeal bonds, or to secure indemnity, performance or other similar bonds; (vii) Liens
on Equipment or other capital assets, or software or other intellectual property constituting purchase money Liens and Liens in connection with capital leases securing Indebtedness permitted in clause (iii) of “Permitted
Indebtedness”; (viii) Liens incurred in connection with Subordinated Indebtedness; (ix) leasehold interests in leases or subleases, licenses or sublicenses granted in the ordinary course of business and not interfering in any material
respect with the business of the licensor; (x) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of custom duties that are promptly paid on or before the date they become due or being contested in
good faith by appropriate proceedings; provided, that the Borrower maintain adequate reserves therefor in accordance with GAAP; (xi) Liens on insurance proceeds securing the payment of financed 

  
 10 

 
insurance premiums that are promptly paid on or before the date they become due (provided that such Liens extend only to such insurance proceeds and not to any other property or assets); (xii)
statutory, common law and contractual rights of set-off and other similar rights as to deposits of cash and securities in favor of banks, other depository institutions and brokerage firms;
(xiii) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business so long
as they do not materially impair the value or marketability of the related property; (xiv) Liens on Cash securing obligations permitted under clause (vii) of the definition of Permitted Indebtedness; (xv) [Reserved], (xvi) precautionary
filings in connection with operating leases in the Equipment that is the subject of such leases; provided that such Liens and collateral descriptions in such precautionary filings be limited to such specific operating leases and not all assets or
substantially all assets of the Borrower or any Subsidiary, (xvii) additional Liens securing obligations not in excess of $50,000 at any time outstanding; provided that such Liens and collateral descriptions in any filings be limited to
specific assets and not all assets or substantially all assets of the Borrower or any Subsidiary, and (xviii) Liens incurred in connection with the extension, renewal or refinancing of the Indebtedness secured by Liens of the type described in
clauses (i) through (xiv) above; provided, that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed, refinanced,
modified, amended, restated or amended and restated (as may have been reduced by any payment thereon) does not increase. 
 “Permitted
Transfers” means (i) sales of Inventory in the ordinary course of business, (ii) non-exclusive licenses, sublicenses and similar arrangements for the use of Intellectual Property of Borrower or
Borrower Products and related assets in the ordinary course of business, (iii) exclusive licenses, sublicenses and similar arrangements for the use of Intellectual Property of Borrower or Borrower Products and related assets in the ordinary
course of business that may be exclusive in respects other than territory, and that may be exclusive as to territory only as to discreet geographical areas outside of the United States of America, (iv) exclusive licenses, sublicenses and
similar arrangements in the ordinary course of business for the use of Intellectual Property of Borrower or Borrower Products and related assets that is exclusive as to territory inside the United States of America, provided that each such license
(a) is for a specific disease indication and/or a specific drug target, and (b) constitutes an arms-length transaction, the terms of which, on their face, do not provide for a sale or assignment by Borrower of any Intellectual Property,
(v) dispositions of worn-out, obsolete or surplus Equipment at fair market value in the ordinary course of business, (vi) transfers by and among Borrower and any Subsidiary that has executed a
Joinder Agreement, (vii) the use or transfer of cash or cash equivalents in a manner that is not prohibited by the terms of this Agreement or the other Loan Documents and in the ordinary course of business, (viii) transfers consisting of
Permitted Liens or Permitted Investments, (ix) subleases of real property in the ordinary course of business and (x) other transfers of assets having a fair market value of not more than $250,000 in the aggregate in any fiscal year. 

“Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association,
corporation, limited liability company, institution, other entity or government. 

  
 11 

 “PIK Deferral Period” has the meaning set forth in 2.2(c)(iii). 

“Pledge Agreement” means the Pledge Agreement dated as of the Closing Date between Borrower and Agent, as the same may from time to
time be amended, restated, modified or otherwise supplemented. 
 “Prepayment Charge” shall have the meaning assigned to such term
in Section 2.5. 
 “Receivables” means (i) all of Borrower’s Accounts, Instruments, Documents, Chattel Paper,
Supporting Obligations, letters of credit, proceeds of any letter of credit, and Letter of Credit Rights, and (ii) all customer lists, software, and business records related thereto. 

“Recipient” means (a) the Agent, or (b) any Lender. 

“Required Lenders” means at any time, the holders of more than 50% of the sum of the aggregate unpaid principal amount of the Term
Loans then outstanding. 
 “Sanctioned Country” shall mean, at any time, a country or territory which is the subject or target of
any Sanctions. 
 “Sanctioned Person” shall mean, at any time, (a) any Person listed in any Sanctions-related list of
designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or by the United Nations Security Council, the European Union or any EU member state, (b) any Person
operating, organized or resident in a Sanctioned Country or (c) any Person controlled by any such Person. 
 “Sanctions”
shall mean economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the
Treasury or the U.S. Department of State, or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom. 

“SBA” shall have the meaning assigned to such term in Section 7.16. 

“SBA Funding Date” means each date on which each of the following has occurred (i) a Lender which is an SBIC funds any portion
of the Term Loans, (ii) prior written notice of the same has been provided to Borrower and (iii) a completed Addendum 1 to this agreement has been delivered by Borrower to Agent, which shall occur promptly (but in any event within three
(3) Business Days) after the notice provided in clause (ii) above. 
 “SBIC” shall have the meaning assigned to such
term in Section 7.16. 
 “SBIC Act” shall have the meaning assigned to such term in Section 7.16. 

“SEC” means the Securities and Exchange Commission. 

  
 12 

 “Secured Obligations” means Borrower’s obligations under this Agreement and
any Loan Document, including any obligation to pay any amount now owing or later arising. 
 “Securities Act” means the Securities
Act of 1933, as amended. 
 “Subordinated Indebtedness” means Indebtedness subordinated to the Secured Obligations in amounts and
on terms and conditions satisfactory to Agent in its sole discretion and subject to a subordination agreement in form and substance satisfactory to Agent in its sole discretion. 

“Subsidiary” means an entity, whether corporate, partnership, limited liability company, joint venture or otherwise, in which
Borrower owns or controls 50% or more of the outstanding voting securities, including each entity listed on Schedule 1 hereto. 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding),
assessments, fees or other charges imposed by any governmental authority, including any interest, additions to tax or penalties applicable thereto. 

“Term Commitment” means as to any Lender, the obligation of such Lender, if any, to make a Term Loan Advance to the Borrower in a
principal amount not to exceed the amount set forth under the heading “Term Commitment” opposite such Lender’s name on Schedule 1.1. 

“Term Loan Advance” means each Tranche 1 Advance, Tranche 2 Advance, Tranche 3 Advance, Tranche 4 Advance and any other Term Loan
funds advanced under this Agreement. 
 “Term Loan Cash Interest Rate” means, for any day a per annum rate of interest equal to
the greater of (i) the “prime rate” as reported in The Wall Street Journal plus 2.55%, and (ii) 8.55%; provided that the Term Loan Cash Interest Rate may be reduced from time to time in accordance with Section 2.2(c)(iii).

 “Term Loan Maturity Date” means April 1, 2023. 

“Term Loan PIK Interest” has the meaning set forth in Section 2.2(c)(ii). 

“Term Loan PIK Interest Rate” means, for any day a per annum rate of interest equal to the Cash Interest Reduction Amount,
multiplied by 1.2. 
 “Term Note” means a Promissory Note in substantially the form of Exhibit B. 

“Trademark License” means any written agreement granting any right to use any Trademark or Trademark registration, now owned or
hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 
 “Trademarks” means all
trademarks (registered, common law or otherwise) and any applications in connection therewith, including registrations, recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United
States of America, any State thereof or any other country or any political subdivision thereof. 

  
 13 

 “Tranche 1 Advance” shall have the meaning assigned to such term in
Section 2.2(a)(i). 
 “Tranche 2 Advance” shall have the meaning assigned to such term in Section 2.2(a)(ii). 

“Tranche 3 Advance” shall have the meaning assigned to such term in Section 2.2(a)(iii). 

“Tranche 3 Facility Charge” means 0.85% of the Tranche 3 Advance, which is payable to Lender in accordance with Section 4.2(d).

 “Tranche 4 Advance” shall have the meaning assigned to such term in Section 2.2(a)(iv). 

“Tranche 4 Facility Charge” means 0.85% of the Tranche 4 Advance, which is payable to Lender in accordance with Section 4.2(e).

 “Transfusion Independent” means absence of red blood cell transfusions and hemoglobin levels at or above 8g/dL in the prior 12
weeks. 
 “UCC” means the Uniform Commercial Code as the same is, from time to time, in effect in the State of New York; provided,
that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Agent’s Lien on any Collateral is governed by the Uniform Commercial Code as the same is,
from time to time, in effect in a jurisdiction other than the State of New York, then the term “UCC” shall mean the Uniform Commercial Code as in effect, from time to time, in such other jurisdiction solely for purposes of the provisions
thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions. 

“Unrestricted Cash” means unrestricted Cash held by Borrower in account(s) subject to an Account Control Agreement in favor of
Agent. 
 “U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the
Code. 
 “Withholding Agent” means the Borrower and the Agent. 

Unless otherwise specified, all references in this Agreement or any Annex or Schedule hereto to a “Section,” “subsection,”
“Exhibit,” “Annex,” or “Schedule” shall refer to the corresponding Section, subsection, Exhibit, Annex, or Schedule in or to this Agreement. Unless otherwise specifically provided herein, any accounting term used in
this Agreement or the other Loan Documents shall have the meaning customarily given such term in accordance with GAAP, and all financial computations hereunder shall be computed in accordance with GAAP, consistently applied. If at any time any
change in GAAP would affect the computation of any 

  
 14 

 
requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall so request, the Agent, the Lenders and the Borrower shall negotiate in good faith to amend such
ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (A) such ratio or requirement shall continue to be computed
in accordance with GAAP prior to such change therein and (B) the Borrower shall provide to the Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a
reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. Unless otherwise defined herein or in the other Loan Documents, terms that are used herein or in the other Loan Documents
and defined in the UCC shall have the meanings given to them in the UCC. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s
laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person and
(b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time. 

SECTION 2. THE LOAN 

2.1    [Reserved]. 

2.2    Term Loan. 

(a)    Advances. 

(i)    Tranche 1 Advance. Subject to the terms and conditions of this Agreement, each Lender shall
severally (and not jointly) make in an amount not to exceed its respective Term Commitment, and Borrower agrees to draw, a Term Loan Advance of Twenty Million Dollars ($20,000,000) on the Closing Date (the “Tranche 1 Advance”). 

(ii)    Tranche 2 Advance. Subject to the terms and conditions of this Agreement, beginning on
June 30, 2019 and continuing through September 30, 2019, Borrower may request and each Lender shall severally (and not jointly) make in an amount not to exceed its respective Term Commitment an additional Term Loan Advance in an aggregate
principal amount of up to Ten Million Dollars ($10,000,000) (the “Tranche 2 Advance”). 

(iii)    Tranche 3 Advance. Subject to the terms and conditions of this Agreement, beginning on the date
Borrower achieves the Performance Milestone and continuing through March 31, 2020, Borrower may request and each Lender shall severally (and not jointly) make in an amount not to exceed its respective Term Commitment an additional Term Loan
Advance in an aggregate principal amount of up to Five Million Dollars ($5,000,000) (the “Tranche 3 Advance”). 

  
 15 

 (iv)    Tranche 4 Advance. Subject to the terms and
conditions of this Agreement, and conditioned on approval by Lenders’ investment committee in its sole discretion, on or before March 31, 2020, Borrower may request and Lender shall severally (and not jointly) make in an amount not to
exceed its respective Term Commitment an additional Term Loan Advance in an aggregate principal amount of up to Five Million Dollars ($5,000,000) (the “Tranche 4 Advance”). 

(v)    In each case, Term Loan Advances must be in minimum increments of Five Million Dollars ($5,000,000).
The aggregate outstanding Term Loan Advances may be up to the Maximum Term Loan Amount. 
 (b)    
Advance Request. To obtain a Term Loan Advance, Borrower shall complete, sign and deliver an Advance Request (at least three (3) Business Days before the Advance Date other than the Closing Date, which shall be at least one (1) Business
Day, or, in each case, such shorter period of time as Agent may approve in its sole discretion) to Agent. Lender shall fund the Term Loan Advance in the manner requested by the Advance Request provided that each of the conditions precedent to such
Term Loan Advance is satisfied as of the requested Advance Date. 
 (c)    Interest. 

(i)    Term Loan Cash Interest Rate. The principal balance (including, for the avoidance of doubt, any
amount equal to the Term Loan PIK Interest added to principal pursuant to Section 2.2(c)(ii)) of each Term Loan Advance shall bear interest thereon from such Advance Date at the Term Loan Cash Interest Rate (as may be reduced for a given period
in an amount equal to the applicable Cash Interest Reduction Amount pursuant to Section 2.2(c)(iii)) based on a year consisting of 360 days, with interest computed daily based on the actual number of days elapsed. 

(ii)    Term Loan PIK Interest Rate. In addition to interest accrued pursuant to the Term Loan Cash
Interest Rate, the principal balance of each Term Loan Advance shall bear interest thereon during any PIK Deferral Period at the Term Loan PIK Interest Rate based on a year consisting of 360 days, with interest computed daily based on the actual
number of days elapsed (the “Term Loan PIK Interest”), which amount shall be added to the outstanding principal balance and so capitalized so as to increase the outstanding principal balance of the Term Loan Advances on each payment date
for such Advance, and which amount shall be payable when the principal amount of the applicable Advance is payable in accordance with Section 2.2(d). 

(iii)    Borrower may elect, by prior written notice to Agent either: (a) prior to an Advance Date, or
(b) at least five (5) Business Days prior to the first Business Day of a month (or such shorter period as Agent may allow in its sole discretion), to reduce the then effective per annum Term Loan Cash Interest Rate applicable to the Term
Loan Advances, by up to 1.00% (the amount of such reduction, the “Cash Interest Reduction Amount”) for a period specified in such 

  
 16 

 
notice, provided that such period shall begin on the first Business Day of the next month and shall end on the last day of the third month or any subsequent month thereafter (the “PIK
Deferral Period”), provided that after the expiration of the PIK Deferral Period, the reduction to the rate of interest shall cease to apply. If during a PIK Deferral Period, Borrower desires to terminate the PIK Deferral Period prior to the
previously requested end date of the PIK Deferral Period, Borrower may by written notice to Agent at least five Business Days prior to the previously scheduled end date of the PIK Deferral Period (or such shorter period as Agent may allow in its
sole discretion), elect an earlier end date (which must be the last day of a month that is no earlier than the last day of the third month after the commencement of the PIK Deferral Period). If during a PIK Deferral Period, Borrower desires to
change the Cash Interest Reduction Amount, Borrower may by written notice to Agent at least five Business Days prior to the first Business Day of the month when such change is to take effect (or such shorter period as Agent may allow in its sole
discretion), elect a different Cash Interest Reduction Amount, provided that the Cash Interest Reduction Amount shall not be changed more frequently than once during any consecutive three month period. 

(d)    Payment. Borrower will pay accrued but unpaid interest on each Term Loan Advance on the first
Business Day of each month, beginning the month after the Advance Date continuing until the Amortization Date. Borrower shall repay the principal balance of the Term Loan Advance that is outstanding on the day immediately preceding the Amortization
Date, in equal monthly installments of principal and interest (mortgage style) beginning on the Amortization Date and continuing on the first Business Day of each month thereafter until the Secured Obligations (other than inchoate indemnity
obligations) are repaid, provided that if the Term Loan Cash Interest Rate is adjusted in accordance with its terms, or the Amortization Date or the Term Loan Maturity Date is extended, or a PIK Deferral Period becomes effective, the amount
of each subsequent monthly installment shall be recalculated so that the remaining payments shall be equal monthly installments of principal and interest (mortgage style) beginning on the first Business Day of the month following such recalculation
and continuing on the first Business Day of each month thereafter until the Secured Obligations (other than inchoate indemnity obligations) are repaid in full. The entire principal balance of the Term Loan Advance and all accrued but unpaid interest
hereunder, shall be due and payable on the Term Loan Maturity Date. Borrower shall make all payments under this Agreement without setoff, recoupment or deduction and regardless of any counterclaim or defense. Lender will initiate debit entries to
the Borrower’s account as authorized on the ACH Authorization (i) on each payment date of all periodic obligations payable to Lender with respect to the Term Loan Advance and (ii) reasonable and documented out-of-pocket legal fees and costs incurred by Agent or Lender in connection with Section 11.11 of this Agreement; provided that, with respect to clause (i) above,
in the event that Lender or Agent provides written notice to Borrower that Lender will not initiate a debit entry to Borrower’s account for a certain amount of the periodic obligations due on a specific payment date, Borrower shall pay to
Lender such amount of periodic obligations in full in immediately available funds on such payment date; provided, further, that, with respect to clause (i) above, if Lender or Agent informs Borrower that Lender will not initiate a debit

  
 17 

 
entry as described above later than the date that is three (3) Business Days prior to the relevant payment date, Borrower shall pay to Lender such amount of periodic obligations in full in
immediately available funds on the date that is three (3) Business Days after the date on which Lender or Agent notifies Borrower thereof; provided, further, that, with respect to clause (ii) above, in the event that Lender or Agent
provides written notice to Borrower that Lender will not initiate a debit entry to a Borrower’s account for specified out-of-pocket legal fees and costs incurred by
Agent or Lender, Borrower shall pay to Lender such amount in full in immediately available funds within three (3) Business Days. 

2.3    Maximum Interest. Notwithstanding any provision in this Agreement or any other Loan Document, it is
the parties’ intent not to contract for, charge or receive interest at a rate that is greater than the maximum rate permissible by law that a court of competent jurisdiction shall deem applicable hereto (which under the laws of the State of New
York shall be deemed to be the laws relating to permissible rates of interest on commercial loans) (the “Maximum Rate”). If a court of competent jurisdiction shall finally determine that Borrower has actually paid to Lender an amount of
interest in excess of the amount that would have been payable if all of the Secured Obligations had at all times borne interest at the Maximum Rate, then such excess interest actually paid by Borrower shall be applied as follows: first, to the
payment of the Secured Obligations consisting of the outstanding principal; second, after all principal is repaid, to the payment of Lender’s accrued interest, costs, expenses, professional fees and any other Secured Obligations; and third,
after all Secured Obligations are repaid, the excess (if any) shall be refunded to Borrower. 

2.4    Default Interest. In the event any payment is not paid on the scheduled payment date, subject to
any applicable grace periods as set forth in Section 9.1, an amount equal to four percent (4%) of the past due amount shall be payable on demand. In addition, upon the occurrence and during the continuation of an Event of Default hereunder, at
the election of the Agent, all Secured Obligations, including principal, interest, compounded interest, and professional fees, shall bear interest at a rate per annum equal to the rate set forth in Section 2.2(c), plus four percent (4%) per
annum. In the event any interest is not paid when due hereunder, delinquent interest shall be added to principal and shall bear interest on interest, compounded at the rate set forth in Section 2.2(c) or Section 2.4, as applicable. 

2.5    Prepayment. At its option, Borrower may at any time prepay all or a portion of the outstanding
Advances by paying the entire principal balance (or such portion thereof), all accrued and unpaid interest thereon, together with a prepayment charge equal to the following percentage of the Advance amount being prepaid: with respect to each
Advance, if such Advance amounts are prepaid in any of the first twelve (12) months following the Advance Date of such Advance, 2.00%; after twelve (12) months but prior to twenty four (24) months, 1.00%; and thereafter, 0.50% (each,
a “Prepayment Charge”). Borrower agrees that the Prepayment Charge is a reasonable calculation of Lender’s lost profits in view of the difficulties and impracticality of determining actual damages resulting from an early repayment of
the Advances. 

  
 18 

 
Borrower shall prepay the outstanding amount of all principal and accrued interest through the prepayment date and the Prepayment Charge upon the occurrence of a Change in Control.
Notwithstanding the foregoing, Agent and Lender agree to waive the Prepayment Charge if Agent, Lender or one of their respective Affiliates (in their sole and absolute discretion) agree in writing to refinance the Advances prior to the Term Loan
Maturity Date. Any amounts paid under this Section shall be applied by Agent to the then unpaid amount of any Secured Obligations (including principal and interest) in such order and priority as Agent may choose in its sole discretion.
Notwithstanding anything to the contrary contained in this Agreement, Borrower may rescind any notice of prepayment if such prepayment would have resulted from a refinancing of all or a portion of the Term Loan Advances or a transaction resulting in
a Change of Control, which refinancing or transaction shall not be consummated or shall otherwise be delayed. 

2.6    End of Term Charge. On the earliest to occur of (i) the Term Loan Maturity Date, (ii) the
date that Borrower prepays the outstanding Secured Obligations (other than any inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) in full, or (iii) the date that the
Secured Obligations become due and payable, Borrower shall pay Lender a charge equal to 6.35% of the aggregate Term Loan Advances. Notwithstanding the required payment date of such charge, it shall be deemed earned by Lender as of the Closing Date.

 2.7    Notes. If so requested by Lender by written notice to Borrower, then Borrower shall execute
and deliver to Lender (and/or, if applicable and if so specified in such notice, to any Person who is an assignee of Lender pursuant to Section 11.13) (promptly after the Borrower’s receipt of such notice) a Note or Notes to evidence
Lender’s Loans. 
 2.8    Pro Rata Treatment. Each payment (including prepayment) hereunder and any
reduction of the Term Loans shall be made pro rata according to the Term Commitments of the relevant Lender. 

2.9    Taxes. 

(a)    Defined Terms. For purposes of this Section, the term “applicable law” includes FATCA.

 (b)    Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower
under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction
or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant
governmental authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such
deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made. 

  
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 (c)    Payment of Other Taxes by Borrower. The Borrower
shall timely pay to the relevant governmental authority in accordance with applicable law, or at the option of the Agent timely reimburse it for the payment of, any Other Taxes. 

(d)    Indemnification by Borrower. The Borrower shall indemnify each Recipient, within 10 days after
demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a
payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant governmental authority. A certificate as to the
amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error. 

(e)    Indemnification by the Lenders. Each Lender shall severally indemnify the Agent, within 10 days
after written demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Agent for such Indemnified Taxes and without limiting the obligation of the
Borrower to do so), and (ii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto,
whether or not such Taxes were correctly or legally imposed or asserted by the relevant governmental authority. A reasonably detailed certificate as to the amount of such payment or liability delivered to any Lender by the Agent shall be conclusive
absent manifest error. Each Lender hereby authorizes the Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Agent to the Lender from any other source against any amount
due to the Agent under this paragraph (e). 
 (f)    Evidence of Payments. As soon as practicable after
any payment of Taxes by the Borrower to a governmental authority pursuant to this Section, the Borrower shall deliver to the Agent the original or a certified copy of a receipt issued by such governmental authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably satisfactory to the Agent. 

(g)    Status of Lenders. 

(i)    Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to
payments made under any Loan Document shall deliver to the Borrower and the Agent, at the time or times reasonably requested by the Borrower or the Agent, such properly completed and executed documentation reasonably requested by the Borrower or the
Agent as will permit such payments to be made without withholding or at a reduced rate of 

  
 20 

 
withholding. In addition, any Lender, if reasonably requested by the Borrower or the Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the
Borrower or the Agent as will enable the Borrower or the Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences,
the completion, execution and submission of such documentation (other than such documentation set forth in paragraphs (g)(ii)(1), (ii)(2) and (iv) of this Section) shall not be required if in the Lender’s reasonable judgment such
completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender. 

(ii)    Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

  

	 	1.	 any Lender that is a U.S. Person shall deliver to the Borrower and the Agent on or about the date on which such
Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt
from U.S. federal backup withholding Tax; 

  

	 	2.	 any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Agent
(in such number of copies as shall be requested by the recipient) on or about the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Agent),
whichever of the following is applicable: 

 A.    in the case of a Foreign Lender claiming the
benefits of an income Tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such Tax treaty and (y) with
respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption
from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such Tax treaty; 

B.    executed copies of IRS Form W-8ECI; 

C.    in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under
Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit K-1 to the 

  
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effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning
of Section 871(h)(3)(B) of the Code, or a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of
IRS Form W-8BEN or IRS Form W-8BEN-E; or 

D.    to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form
W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit K-2 or Exhibit
K-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more
direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit K-4 on
behalf of each such direct and indirect partner; 
 (iii)    any Foreign Lender shall, to the extent it
is legally entitled to do so, deliver to the Borrower and the Agent (in such number of copies as shall be requested by the recipient) on or about the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the reasonable request of the Borrower or the Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with
such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Agent to determine the withholding or deduction required to be made; and 

(iv)    if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding
Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and
the Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and
such additional documentation reasonably requested by the Borrower or the Agent as may be necessary for the Borrower and the Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s
obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this clause (iv), “FATCA” shall include any amendments made to FATCA after the date of this Agreement. 

  
 22 

 (h)    Each Lender agrees that if any form or
certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Agent in writing of its legal inability to do so. 

(i)    Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in good
faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section (including by the payment of additional amounts pursuant to this Section), it shall pay to the indemnifying party an amount equal to such
refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses
(including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant governmental authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to
such indemnified party the amount paid over pursuant to this paragraph (i) (plus any penalties, interest or other charges imposed by the relevant governmental authority) in the event that such indemnified party is required to repay such refund to
such governmental authority. Notwithstanding anything to the contrary in this paragraph (i), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (i) the payment of which would
place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted,
withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other
information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.  

2.10    Borrower agrees that any Prepayment Charge and any End of Term Charge payable in accordance with
the terms hereof shall be presumed to be the liquidated damages sustained by each Lender as the result of the early termination, and Borrower agrees that it is reasonable under the circumstances currently existing and existing as of the Closing
Date. The Prepayment Charge and the End of Term Charge shall also be payable in accordance with the terms hereof in the event the Secured Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of judicial
proceeding), deed in lieu of foreclosure, or by any other means. Borrower expressly waives (to the fullest extent it may lawfully do so) the provisions of any present or future statute or law that prohibits or may prohibit the collection of the
foregoing Prepayment Charge and End of Term Charge in connection with any such acceleration. Borrower agrees (to the fullest extent that each may lawfully do so): (a) each of the Prepayment Charge and the End of Term Charge is reasonable and is the
product of an arm’s length transaction between sophisticated business people, ably represented by counsel; (b) each of the Prepayment Charge and the End of Term Charge shall be payable in accordance with the terms hereof notwithstanding
the then prevailing market rates at the time payment is made; (c) there has been a course of conduct between the Lenders and Borrower giving specific consideration in this transaction for such agreement to pay the Prepayment Charge and the End
of Term Charge as a charge (and not interest) in the event of 

  
 23 

 
prepayment or acceleration; (d) Borrower shall be estopped from claiming differently than as agreed to in this paragraph. Borrower expressly acknowledges that their agreement to pay each of
the Prepayment Charge and the End of Term Charge to the Lenders as herein described was on the Closing Date and continues to be a material inducement to the Lenders to provide the Term Loans. 

SECTION 3. SECURITY INTEREST 

3.1    As security for the prompt and complete payment when due (whether on the payment dates or
otherwise) of all the Secured Obligations, Borrower grants to Agent a security interest in all of Borrower’s right, title, and interest in, to and under all of Borrower’s personal property and other assets including without limitation the
following (except as set forth herein) whether now owned or hereafter acquired (collectively, the “Collateral”): (a) Receivables; (b) Equipment; (c) Fixtures; (d) General Intangibles (other than Intellectual Property);
(e) Inventory; (f) Investment Property; (g) Deposit Accounts; (h) Cash; (i) Goods; and all other tangible and intangible personal property of Borrower whether now or hereafter owned or existing, leased, consigned by or to,
or acquired by, Borrower and wherever located, and any of Borrower’s property in the possession or under the control of Agent; and, to the extent not otherwise included, all Proceeds of each of the foregoing and all accessions to, substitutions
and replacements for, and rents, profits and products of each of the foregoing; provided, however, that the Collateral shall include all Accounts and General Intangibles that consist of rights to payment and proceeds from the sale, licensing
or disposition of all or any part, or rights in, the Intellectual Property (the “Rights to Payment”). 

3.2    Notwithstanding the broad grant of the security interest set forth in Section 3.1, above, the
Collateral shall not include: (a) non-assignable licenses or contracts, which by their terms require the consent of the licensor thereof or another party (but only to the extent such prohibition on
transfer is enforceable under applicable law, including, without limitation, Sections 9406, 9407 and 9408 of the UCC), (b) any Excluded Account, (c) any interest of Borrower as a lessee under an Equipment lease or other capital assets
constituting purchase money Liens to the extent permitted pursuant to clause (vii) of the definition of Permitted Liens if Borrower is prohibited by the terms of such lease from granting a security interest in such lease or under which such an
assignment or Lien would cause a default to occur under such lease; provided, however, that upon termination or cessation of such prohibition, such interest shall immediately become Collateral without any action by Borrower, Agent or Lenders,
(d) any Intellectual Property and (e) any particular asset if the pledge thereof or the security interest therein is prohibited or restricted by applicable law, rule or regulation (including any requirement to obtain the consent of any
governmental authority, regulatory authority or third party), provided that the foregoing exclusion of this clause (e) shall in no way be construed (1) to apply to the extent that any described prohibition or restriction is unenforceable
under Section 9-406, 9-407, 9-408, or 9-409 of the UCC or other applicable law or
(2) to apply to the extent that any consent or waiver has been obtained, or is hereafter obtained, that would permit the Agent’s security interest or Lien notwithstanding the prohibition or restriction on the pledge of such asset. 

  
 24 

 3.3    At such time as the Secured Obligations (other
than inchoate indemnity obligations) are paid in full in cash, Agent’s Lien on the Collateral shall be released and all rights therein shall revert to Borrower, and, at Borrower’s sole cost and expense, Agent agrees to execute such
documents and take such other steps as are reasonably necessary for Borrower to accomplish the foregoing, all at Borrower’s sole cost and expense. 

SECTION 4. CONDITIONS PRECEDENT TO LOAN 

The obligations of Lender to make the Loan hereunder are subject to the satisfaction by Borrower of the following conditions: 

4.1    Initial Advance. On or prior to the Closing Date, Borrower shall have delivered to Agent the
following: 
 (a)    executed copies of the Loan Documents, Account Control Agreements, all other
documents and instruments reasonably required by Agent to effectuate the transactions contemplated hereby or to create and perfect the Liens of Agent with respect to all Collateral, in all cases in form and substance reasonably acceptable to Agent;

 (b)    a legal opinion of Borrower’s counsel, in form and substance reasonably acceptable to
Agent; 
 (c)    certified copy of resolutions of Borrower’s board of directors evidencing approval
of the Loan and other transactions evidenced by the Loan Documents; 
 (d)    certified copies of the
Certificate of Incorporation and the Bylaws, as amended through the Closing Date, of Borrower; 

(e)    a certificate of good standing for Borrower from its state of incorporation and similar certificates
from all other jurisdictions in which it does business and where the failure to be qualified could have a Material Adverse Effect; 

(f)    payment of the Initial Facility Charge and reimbursement of Agent’s and Lender’s current
reasonable and documented out-of-pocket expenses reimbursable pursuant to this Agreement, which amounts may be deducted from the initial Advance; 

(g)    all certificates of insurance required hereunder; 

(h)    payment of the Due Diligence Fee; and 

(i)    such other documents as Agent may reasonably request. 

4.2    All Advances. On each Advance Date: 

(a)    Agent shall have received an Advance Request for the relevant Advance as required by
Section 2.2(b), each duly executed by a duly authorized officer of Borrower. 

  
 25 

 (b)    The representations and warranties set forth in
this Agreement shall be true and correct in all material respects on and as of the Advance Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date.

 (c)    with respect to the Tranche 3 Advance, Borrower shall have paid the applicable Tranche 3
Facility Charge. 
 (d)    with respect to the Tranche 4 Advance, Borrower shall have paid the applicable
Tranche 4 Facility Charge. 
 (e)    Each Advance Request shall be deemed to constitute a representation
and warranty by Borrower on the relevant Advance Date as to the matters specified in paragraph (b) of this Section 4.2 and Section 4.3 and as to the matters set forth in the Advance Request. 

4.3    No Default. As of the Closing Date and each Advance Date, (i) no fact or condition exists that
could (or could, with the passage of time, the giving of notice, or both) constitute an Event of Default and (ii) no event that has had or could reasonably be expected to have a Material Adverse Effect has occurred and is continuing. 

SECTION 5. REPRESENTATIONS AND WARRANTIES OF BORROWER 

Borrower represents and warrants that: 

5.1    Corporate Status. Borrower is a corporation duly organized, legally existing and in good standing
under the laws of the State of Delaware, and is duly qualified as a foreign corporation in all jurisdictions in which the nature of its business or location of its properties require such qualifications and where the failure to be qualified could
reasonably be expected to have a Material Adverse Effect. Borrower’s present name, former names (if any), locations, place of formation, Tax identification number, organizational identification number and other information are correctly set
forth in Exhibit C, as may be updated by Borrower in a written notice (including any Compliance Certificate) provided to Agent after the Closing Date. 

5.2    Collateral. Borrower owns the Collateral and the Intellectual Property owned by it free of all
Liens, except for Permitted Liens. Borrower has the power and authority to grant to Agent a Lien in the Collateral as security for the Secured Obligations. 

5.3    Consents. Borrower’s execution, delivery and performance of this Agreement and all other Loan
Documents (i) have been duly authorized by all necessary corporate action of Borrower, (ii) will not result in the creation or imposition of any Lien upon the Collateral, other than Permitted Liens and the Liens created by this Agreement
and the other Loan Documents, (iii) do not violate any provisions of Borrower’s Certificate or Articles of Incorporation (as applicable), bylaws, or any, law, regulation, order, injunction, judgment, decree or writ to which Borrower is
subject and (iv) except as 

  
 26 

 
described on Schedule 5.3, do not violate any material contract or agreement or require the consent or approval of any other Person pursuant to a material contract or agreement or applicable law
which has not already been obtained. The individual or individuals executing the Loan Documents are duly authorized to do so. 

5.4    Material Adverse Effect. No event that has had or could reasonably be expected to have a Material
Adverse Effect has occurred and is continuing. Borrower is not aware of any event likely to occur that would reasonably be expected to result in a Material Adverse Effect. 

5.5    Actions Before Governmental Authorities. There are no actions, suits or proceedings at law or in
equity or by or before any governmental authority now pending or, to the knowledge of Borrower, threatened against or affecting Borrower or its property, that is reasonably expected to result in a Material Adverse Effect. 

5.6    Laws. 

(a)    Neither Borrower nor any of its Subsidiaries is in violation of any law, rule or regulation, or in
default with respect to any judgment, writ, injunction or decree of any governmental authority, where such violation or default would reasonably be expected to result in a Material Adverse Effect. Borrower is not in default in any manner under any
provision of any agreement or instrument evidencing Indebtedness in excess of $500,000, or any other agreement to which it is a party or by which it is bound which default would reasonably be expected to result in a Material Adverse Effect. 

(b)    Neither Borrower nor any of its Subsidiaries is an “investment company” or a company
“controlled” by an “investment company” under the Investment Company Act of 1940, as amended. Neither Borrower nor any of its Subsidiaries is engaged as one of its important activities in extending credit for margin stock (under
Regulations X, T and U of the Federal Reserve Board of Governors). Borrower and each of its Subsidiaries has complied in all material respects with the Federal Fair Labor Standards Act. No Borrower nor any of its Subsidiaries is a “holding
company” or an “affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Neither
Borrower’s nor any of its Subsidiaries’ properties or assets has been used by Borrower or such Subsidiary or, to Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous
substance other than in material compliance with applicable laws. Borrower and each of its Subsidiaries has obtained all required consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all
Governmental Authorities, except where the failure to do so would not reasonably be expected to result in a Material Adverse Effect. 

(c)    None of Borrower, any of its Subsidiaries, or to Borrower’s knowledge any of Borrower’s or
its Subsidiaries’ Affiliates or to Borrower’s knowledge any of their respective agents acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement is (i) in violation of any Anti-Terrorism
Law, (ii) engaging in or conspiring to engage in any transaction that evades or avoids, or has the 

  
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purpose of evading or avoiding or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law, or (iii) is a Blocked Person. None of Borrower, its Subsidiaries, or to
the knowledge of Borrower, any of its Affiliates or agents, acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement, (x) conducts any business or engages in making or receiving any contribution of
funds, goods or services to or for the benefit of any Blocked Person, or (y) deals in, or otherwise engages in any transaction relating to, any property or interest in property blocked pursuant to Executive Order No. 13224, any similar
executive order or other Anti-Terrorism Law. None of the funds to be provided under this Agreement will be used, directly or indirectly, (a) for any activities in violation of any applicable anti-money laundering, economic sanctions and
anti-bribery laws and regulations laws and regulations or (b) for any payment to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 

5.7    Information Correct and Current. No written information, report, Advance Request, financial
statement, exhibit or schedule furnished (other than financial or business projections or other information of a forward-looking nature), by or on behalf of Borrower to Agent in connection with any Loan Document or included therein or delivered
pursuant thereto contained, or, when taken as a whole, contains or will contain any material misstatement of fact or, when taken together with all other such information or documents, omitted, omits or will omit to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were, are or will be made, not materially misleading at the time such statement was made or deemed made. Additionally, any and all financial or business projections
provided by Borrower to Agent, whether prior to or after the Closing Date, shall be (i) provided in good faith and based on the most current data and information available to Borrower, and (ii) the most current of such projections provided
to Borrower’s Board of Directors (it being understood that such projections are subject to significant uncertainties and contingencies, many of which are beyond the control of Borrower, that no assurance is given that any particular projections
will be realized, and that actual results may differ). 
 5.8    Tax Matters. Except as described on
Schedule 5.8 and except those Taxes being contested in good faith with adequate reserves under GAAP, (a) Borrower and its Subsidiaries have filed all material federal, state and local Tax returns that they are required to file,
(b) Borrower and its Subsidiaries have duly paid or fully reserved for all Taxes or installments thereof (including any interest or penalties) as and when due, which have or may become due pursuant to such returns, and (c) Borrower and its
Subsidiaries have paid or fully reserved for any Tax assessment received by any of them or the three (3) years preceding the Closing Date, if any (including any Taxes being contested in good faith and by appropriate proceedings), in each case
with respect to clauses (b) and (c), other than with respect to Taxes that do not exceed Twenty-Five Thousand Dollars ($25,000) in the aggregate. 

  
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 5.9    Intellectual Property Claims. Except for
Permitted Liens, Borrower is the sole owner of, or otherwise have the right to use, the Intellectual Property owned by Borrower and material to Borrower’s business. Except as described on Schedule 5.9, (i) to Borrower’s knowledge, each of
the material Copyrights, Trademarks and issued Patents is valid and enforceable, (ii) no material part of the Intellectual Property owned by Borrower has been judged by a decision of a court of competent jurisdiction, invalid or unenforceable,
in whole or in part, and (iii) no claim has been made to Borrower in writing that any material Intellectual Property of Borrower violates the rights of any third party except to the extent such claim would not reasonably be expected to have a
Material Adverse Effect. Exhibit D contains a true, correct and complete list of Borrower’s registered Patents, registered Trademarks, registered Copyrights, if any, together with application or registration numbers, as applicable, owned by
Borrower or any Subsidiary, and agreements under which Borrower licenses Intellectual Property from third parties that is material to the Borrower’s business (other than shrink-wrap software licenses), in each case as of the Closing Date.
Borrower is not in breach of, nor has Borrower failed to perform any obligations under, any of the foregoing contracts, licenses or agreements and, to Borrower’s knowledge, no third party to any such contract, license or agreement is in breach
thereof or has failed to perform any obligations thereunder, in each case, except where such breach or failure to perform would not reasonably be expected to have a Material Adverse Effect. 

5.10    Intellectual Property. Except as described on Schedule 5.10, Borrower has all material rights with
respect to Intellectual Property necessary or material in the operation or conduct of Borrower’s business as currently conducted and proposed to be conducted by Borrower. Without limiting the generality of the foregoing, and in the case of
Licenses, except for restrictions that are unenforceable under Division 9 of the UCC, Borrower has the right, to the extent required to operate Borrower’s business, to freely transfer, license or assign Borrower’s owned Intellectual
Property necessary or material in the operation or conduct of Borrower’s business as currently conducted and proposed to be conducted by Borrower, without condition, restriction or payment of any kind (other than license payments in the
ordinary course of business) to any third party, and Borrower owns or has the right to use, pursuant to valid licenses, all software development tools, library functions, compilers and all other third-party software and other items that are material
to Borrower’s business and used in the design, development, promotion, sale, license, manufacture, import, export, use or distribution of Borrower Products that are material to the Borrower’s business except customary covenants in inbound
license agreements and equipment leases where Borrower is the licensee or lessee. 
 5.11    Borrower
Products. Except as described on Schedule 5.11, no material Intellectual Property owned by Borrower or Borrower Product has been or is subject to any actual proceeding (including any proceeding in the United States Patent and Trademark Office or any
corresponding foreign office or agency) or outstanding decree, order, judgment, settlement agreement or stipulation that restricts in any material respect Borrower’s use, transfer or licensing thereof or that may affect the validity, use or
enforceability thereof. To the Borrower’s knowledge, there is no decree, order, judgment, agreement, stipulation, arbitral award or other provision entered into in connection with 

  
 29 

 
any litigation or proceeding that obligates Borrower to grant licenses or ownership interest in any future material Intellectual Property related to the operation or conduct of the business of
Borrower or Borrower Products. Borrower has not received any written notice or claim or, to the knowledge of Borrower, oral notice or claim, challenging or questioning Borrower’s ownership in any material Intellectual Property (or written
notice of any claim challenging or questioning the ownership in any licensed Intellectual Property of the owner thereof) or suggesting that any third party (other than the licensor or co-owner with Borrower)
has any claim of legal or beneficial ownership with respect thereto. To the Borrower’s knowledge, neither Borrower’s use of its material Intellectual Property nor the production and sale of Borrower Products infringes in any material
respect the Intellectual Property or other rights of others. 
 5.12    Financial Accounts. Exhibit E,
as may be updated by the Borrower in a written notice or Compliance Certificate provided to Agent after the Closing Date, is a true, correct and complete list of (a) all banks and other financial institutions at which Borrower or any Subsidiary
maintains Deposit Accounts and (b) all institutions at which Borrower or any Subsidiary maintains an account holding Investment Property, and such exhibit correctly identifies the name, address and telephone number of each bank or
other institution, the name in which the account is held, a description of the purpose of the account, and the complete account number therefor. 

5.13    Employee Loans. Except as permitted by Section 7.6, Borrower has no outstanding loans to any
employee, officer or director of Borrower nor has Borrower guaranteed the payment of any loan made to an employee, officer or director of Borrower by a third party. 

5.14    Capitalization and Subsidiaries. Borrower’s authorized, issued and outstanding shares as of
December 31, 2018 is set forth on Schedule 5.14 annexed hereto. Borrower does not own any stock, partnership interest or other securities of any Person, except for Permitted Investments. Attached as Schedule 5.14, as may be updated by Borrower
in a written notice provided after the Closing Date, is a true, correct and complete list of each Subsidiary. 
 SECTION 6. INSURANCE;
INDEMNIFICATION 
 6.1    Coverage. Borrower shall cause to be carried and maintained commercial
general liability insurance, on an occurrence form, against risks customarily insured against in Borrower’s line of business. Such risks shall include the risks of bodily injury, including death, property damage, personal injury, advertising
injury, and contractual liability per the terms of the indemnification agreement found in Section 6.3. Borrower must maintain a minimum of $2,000,000 of commercial general liability insurance for each occurrence. Borrower has and agrees to
maintain a minimum of $2,000,000 of directors’ and officers’ insurance for each occurrence and $5,000,000 in the aggregate. So long as there are any Secured Obligations outstanding, Borrower shall also cause to be carried and maintained
insurance upon the Collateral, insuring against all risks of physical loss or damage howsoever caused, in an amount not less than the full replacement cost of the Collateral, provided that such insurance may be subject to standard exceptions and
deductibles. 

  
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 6.2    Certificates. Borrower shall deliver to Agent on
or prior to the Closing Date certificates of insurance that evidence Borrower’s compliance with its insurance obligations in Section 6.1 and the obligations contained in this Section 6.2. Borrower’s insurance certificate shall
state Agent (shown as “Hercules Capital, Inc., as Agent”) is an additional insured for commercial general liability, a loss payee for all risk property damage insurance, subject to the insurer’s approval, and a loss payee for property
insurance and additional insured for liability insurance for any future insurance that Borrower may acquire from such insurer. Attached to the certificates of insurance will be additional insured endorsements for liability and lender’s loss
payable endorsements for all risk property damage insurance within the time frame set forth in Section 7.19(a). All certificates of insurance will provide for a minimum of thirty (30) days advance written notice to Agent of cancellation
(other than cancellation for non-payment of premiums, for which ten (10) days’ advance written notice shall be sufficient). Borrower shall give prompt notice to Agent of any other change to such
insurance policies materially adverse to Agent’s interests. Any failure of Agent to scrutinize such insurance certificates for compliance is not a waiver of any of Agent’s rights, all of which are reserved. Borrower shall provide Agent
with copies of each insurance policy included on the insurance certificates on the Closing Date within the time frame set forth in Section 7.19(a), and upon entering or amending any insurance policy required hereunder, Borrower shall promptly
notify Agent thereof, and upon Agent’s request, provide Agent with copies of such policies and shall promptly deliver to Agent updated insurance certificates with respect to such policies. 

6.3    Indemnity. Borrower agrees to indemnify and hold Agent, Lender and their officers, directors,
employees, agents, in-house attorneys, representatives and shareholders (each, an “Indemnified Person”) harmless from and against any and all claims, costs, expenses, damages and liabilities
(including such claims, costs, expenses, damages and liabilities based on liability in tort, including strict liability in tort), including reasonable attorneys’ fees and disbursements and other costs of investigation or defense (including
those incurred upon any appeal) (collectively, “Liabilities”), that may be instituted or asserted against or incurred by such Indemnified Person as the result of credit having been extended, suspended or terminated under this Agreement and
the other Loan Documents or the administration of such credit, or in connection with or arising out of the transactions contemplated hereunder and thereunder, or any actions or failures to act in connection therewith, or arising out of the
disposition or utilization of the Collateral, excluding in all cases Liabilities to the extent resulting directly from any Indemnified Person’s gross negligence or willful misconduct. This Section 6.3 shall survive the repayment of
indebtedness under, and otherwise shall survive the expiration or other termination of, the Agreement. In no event shall any Indemnified Person be liable on any theory of liability for any special, indirect, consequential or punitive damages
(including any loss of profits, business or anticipated savings). This Section shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages or liabilities arising from any
non-Tax claim. 

  
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 SECTION 7. COVENANTS OF BORROWER 

Borrower agrees as follows: 

7.1    Financial Reports. Borrower shall furnish to Agent the financial statements and reports listed
hereinafter (the “Financial Statements”): 
 (a)    as soon as practicable (and in any event
within 30 days) after the end of each calendar month, unaudited interim and year-to-date financial statements as of the end of such month (prepared on a consolidated and
consolidating basis, if available), including balance sheet and related statements of income and cash flows accompanied by a report detailing any material contingencies (including the commencement of any material litigation by or against Borrower)
or any other occurrence that could reasonably be expected to have a Material Adverse Effect, all certified by Borrower’s Chief Executive Officer or Chief Financial Officer to the effect that they have been prepared in accordance with GAAP,
except (i) for the absence of footnotes, (ii) that they are subject to normal year-end adjustments, and (iii) they do not contain certain non-cash items
that are customarily included in quarterly and annual financial statements; 
 (b)    as soon as
practicable (and in any event within 45 days) after the end of each calendar quarter (other than the fourth quarter of each fiscal year), unaudited interim and
year-to-date financial statements as of the end of such calendar quarter (prepared on a consolidated and consolidating basis, if available), including balance sheet and
related statements of income and cash flows accompanied by a report detailing any material contingencies (including the commencement of any material litigation by or against Borrower) or any other occurrence that could reasonably be expected to have
a Material Adverse Effect, certified by Borrower’s Chief Executive Officer or Chief Financial Officer to the effect that they have been prepared in accordance with GAAP, except (i) for the absence of footnotes, and (ii) that they are
subject to normal year-end adjustments; 
 (c)    as soon as
practicable (and in any event within ninety (90) days) after the end of each fiscal year, unqualified (other than going concern qualifications with respect to the maturity of any outstanding Term Loan Advance or Permitted Convertible Debt
Financing) audited financial statements as of the end of such year (prepared on a consolidated and consolidating basis, if available), including balance sheet and related statements of income and cash flows, and setting forth in comparative form the
corresponding figures for the preceding fiscal year, certified by Ernst & Young or another firm of independent certified public accountants selected by Borrower and reasonably acceptable to Agent, accompanied by any management report from
such accountants; 
 (d)    concurrently with the delivery of each of the Financial Statements, a
Compliance Certificate; 
 (e)    as soon as practicable (and in any event within 30 days) after the end
of each month, a report showing agings of accounts receivable and accounts payable; 

  
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 (f)    promptly after the sending or filing thereof, as
the case may be, copies of any proxy statements, financial statements or reports that Borrower has made available to holders of its preferred stock and copies of any regular, periodic and special reports or registration statements that Borrower
files with the Securities and Exchange Commission or any governmental authority that may be substituted therefor, or any national securities exchange; 

(g)    [Reserved]; 

(h)    financial and business projections within thirty (30) days following their approval by
Borrower’s board of directors, and in any event, within 60 days after the end of Borrower’s fiscal year, as well as budgets, operating plans and other financial information reasonably requested by Agent; and 

(i)    prompt notice if Borrower or any Subsidiary has knowledge that Borrower, or any Subsidiary or
Affiliate of Borrower, is listed on the OFAC Lists or (a) is convicted on, (b) pleads nolo contendere to, (c) is indicted on, or (d) is arraigned and held over on charges involving money laundering. 

Borrower shall not make any change in its (a) accounting policies or reporting practices unless required by a change in GAAP or
(b) fiscal years or fiscal quarters. The fiscal year of Borrower shall end on December 31. 
 The executed Compliance Certificate and
all Financial Statements required to be delivered pursuant to clauses (a), (b) and (c) shall be sent via e-mail to Agent at financialstatements@herculestech.com with a copy to mdutra@htgc.com,
bjadot@htgc.com, and legal@herculestech.com; provided, that if e-mail is not available or sending such Financial Statements via e-mail is not possible, they shall
be faxed to Agent at: (650) 473-9194, attention Account Manager: Constellation Pharmaceuticals, Inc. 

Notwithstanding the foregoing or anything else to the contrary in this Agreement, documents required to be delivered under Sections 7.1(a),
(b), (c) or (f) (to the extent any such documents are included in materials otherwise filed with the SEC or posted on the Borrower’s website) shall be deemed to have been delivered on the date on which Borrower emails a link thereto to Agent;
provided that Borrower shall directly provide Agent all Financial Statements required to be delivered pursuant to Section 7.1(b) and (c) hereunder. 

7.2    Inspections; Access to Management. Borrower shall permit any representative that Agent or Lender
authorizes, including its attorneys and accountants, to inspect the Collateral and examine and make copies and abstracts of the books of account and records of Borrower at reasonable times and upon reasonable notice during normal business hours;
provided, however, that so long as no Event of Default has occurred and is continuing, such examinations shall be limited to no more often than once per fiscal year. In addition, any such representative shall have the right at reasonable
times and intervals to meet with management and officers of Borrower to discuss such books of account and records. In addition, Agent or Lender shall be entitled at reasonable times and intervals to consult with and advise the management and
officers of Borrower concerning significant business issues affecting Borrower. Such consultations shall not unreasonably interfere 

  
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with Borrower’s business operations and management and officers of Borrower shall not be bound to accept any such advisement. The parties intend that the rights granted Agent and Lender
shall constitute “management rights” within the meaning of 29 C.F.R. Section 2510.3-101(d)(3)(ii), but that any advice, recommendations or participation by Agent or Lender with respect to any
business issues shall not be deemed to give Agent or Lender, nor be deemed an exercise by Agent or Lender of, control over Borrower’s management or policies. 

7.3    Further Assurances. Borrower shall from time to time execute, deliver and file, alone or with
Agent, any financing statements, security agreements, collateral assignments, notices, control agreements, or other documents to perfect or give the highest priority to Agent’s Lien on the Collateral (subject to Permitted Liens). Borrower shall
from time to time procure any instruments or documents as may be reasonably requested by Agent, and take all further action that may be necessary, or that Agent may reasonably request, to perfect and protect the Liens granted hereby and thereby. In
addition, and for such purposes only, Borrower hereby authorizes Agent to execute and deliver on behalf of Borrower and to file such financing statements (including in accordance with Section 9-504 of the
UCC), collateral assignments, notices, control agreements, security agreements and other documents without the signature of Borrower either in Agent’s name or in the name of Agent as agent and attorney-in-fact for Borrower. Borrower shall protect and defend Borrower’s title to the Collateral and Agent’s Lien thereon against all Persons claiming any interest adverse to Borrower or Agent
other than Permitted Liens. 
 7.4    Indebtedness. Borrower shall not create, incur, assume, guarantee
or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay any Indebtedness or take any actions which impose on Borrower an obligation to prepay any Indebtedness, except
for (a) the exchange or conversion of Indebtedness into equity securities and the payment of cash in lieu of fractional shares in connection with such exchange or conversion, (b) purchase money Indebtedness, (c) prepayment of
intercompany Permitted Indebtedness (i) owed by Borrower to any Subsidiary that has executed a Joinder Agreement or by any Subsidiary that has executed a Joinder Agreement to Borrower, or (ii) if such Subsidiary is not a Borrower,
intercompany Indebtedness owed by such Subsidiary to either Borrower or another Subsidiary that is not a Borrower, (d) obligations providing for the payment in full of the Secured Obligations (other than any inchoate indemnity obligations and
any other obligations which, by their terms, are to survive the termination of this Agreement), (e) prepayments of such Indebtedness to the extent permitted by any subordination agreement applicable thereto, (f) prepayments in connection with
refinancings of such Indebtedness, provided that the principal amount is not increased (except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such
refinancing) or (g) as otherwise permitted hereunder or approved in writing by Agent. 

7.5    Collateral; Negative Pledge. Borrower shall at all times keep the Collateral, the Intellectual
Property and all other property and assets used in Borrower’s business or in which Borrower now or hereafter holds any interest free and clear from any legal process 

  
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or Liens whatsoever (except for Permitted Liens), and shall give Agent prompt written notice of any legal process affecting the Collateral, the Intellectual Property, such other property and
assets, or any Liens thereon, provided however, that the Collateral and such other property and assets may be subject to Permitted Liens except that there shall be no Liens whatsoever on Intellectual Property. Borrower shall not agree with any
Person other than Agent or Lender not to encumber its property except (i) in connection with Permitted Liens, (ii) customary restrictions on the assignment of leases, licenses and other agreements, and (iii) in connection with
Permitted Transfers (provided that this clause (iii) shall not be construed to permit Borrower to agree with any Person (other than Agent or Lender) to grant a security interest on Borrower’s property in connection with a Permitted
Transfer). Borrower shall not enter into or suffer to exist or become effective any agreement that prohibits or limits the ability of Borrower to create, incur, assume or suffer to exist any Lien upon any of its Intellectual Property, whether now
owned or hereafter acquired, to secure its obligations under the Loan Documents to which it is a party, in each case other than (a) this Agreement and the other Loan Documents, (b) any agreements governing any purchase money Liens or
capital lease obligations otherwise permitted hereby (in which case, any prohibition or limitation shall only be effective against the assets financed thereby), (c) in connection with Permitted Liens, Permitted Indebtedness and Permitted Transfers,
and (d) customary restrictions on the assignment of leases, licenses and other agreements. Borrower shall cause its Subsidiaries to protect and defend such Subsidiary’s title to its assets from and against all Persons claiming any interest
adverse to such Subsidiary, and Borrower shall cause its Subsidiaries at all times to keep such Subsidiary’s property and assets free and clear from any Liens whatsoever (except for Permitted Liens) and shall give Agent prompt written notice of
any legal process adversely affecting such Subsidiary’s assets. 
 7.6    Investments. Borrower
shall not directly or indirectly acquire or own, or make any Investment in or to any Person, or permit any of its Subsidiaries so to do, other than Permitted Investments. 

7.7    Distributions. Borrower shall not, and shall not allow any Subsidiary to, (a) repurchase or
redeem any class of stock or other Equity Interest other than pursuant to employee, director or consultant repurchase plans or other similar agreements, provided, however, in each case the repurchase or redemption price does not exceed the original
consideration paid for such stock or Equity Interest or (b) declare or pay any cash dividend or make a cash distribution on any class of stock or other Equity Interest, except that a Subsidiary may pay dividends or make distributions to
Borrower, waive, release or forgive any Indebtedness owed by any employees, officers or directors in excess of $250,000 in the aggregate. 

7.8    Transfers. Except for Permitted Transfers, Borrower shall not, and shall not allow any Subsidiary
to, voluntarily or involuntarily transfer, sell, lease, license, lend or in any other manner convey any equitable, beneficial or legal interest in any material portion of its assets. 

  
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 7.9    Mergers or Acquisitions. Borrower shall not merge
or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any other business organization (other than mergers or consolidations of (a) a Subsidiary which is not a Borrower into another Subsidiary or into Borrower
or (b) a Borrower into another Borrower), or acquire, or permit any of its Subsidiaries to acquire, in each case including for the avoidance of doubt through a merger, purchase, in-licensing arrangement
or any similar transaction, all or substantially all of the capital stock or all or substantially all of the property of another Person. 

7.10    Taxes. Borrower and its Subsidiaries shall file all income and other material tax returns that it
is required to file and pay when due all income and other material Taxes now or hereafter imposed or assessed against Borrower or any Subsidiary or the Collateral or upon Borrower’s ownership, possession, use, operation or disposition thereof
or upon Borrower’s rents, receipts or earnings arising therefrom any Borrower’s rents, receipts or earnings arising therefrom. Borrower and its Subsidiaries shall file on or before the due date therefor all material federal and state Tax
returns required to be filed by them or in respect of the Collateral. Notwithstanding the foregoing, Borrower may contest, in good faith and by appropriate proceedings, taxes for which Borrower maintains adequate reserves therefor in accordance with
GAAP. 
 7.11    Corporate Changes; Change of Control; Relocations of Collateral. 

(a)    Neither Borrower nor any Subsidiary shall change its corporate name, legal form or jurisdiction of
formation without twenty (20) days’ prior written notice to Agent. Neither Borrower nor any Subsidiary shall relocate its chief executive office or its principal place of business unless: (i) it has provided prior written notice to
Agent; and (ii) such relocation shall be within the continental United States of America. 

(b)    Neither Borrower nor any Subsidiary shall suffer a Change in Control. 

(c)    Neither Borrower nor any Subsidiary shall relocate any item of Collateral (other than (A) sales
of Inventory in the ordinary course of business, (B) relocations of Borrower Products contract manufacturing organizations, distribution service firms, contract research organizations, clinical sites, clinical investigators and other
institutions necessary for the conducts of clinical studies, in each case, in the ordinary course of business, (C) in connection with Permitted Transfers, (D) relocations of
works-in-progress, raw materials or otherwise in the supply chain for commercial manufacturing or sale of Borrower Products, (E) relocations of Equipment for repair
or having an aggregate value of up to $250,000 in any fiscal year, and (F) relocations of Collateral from a location described on Exhibit C to another location described on Exhibit C) unless (i) it has provided prompt written notice to
Agent, (ii) such relocation is within the continental United States of America or replaces a location in another country described on Exhibit C or is otherwise approved in writing by Agent and, (iii) if such relocation is to a third party
bailee located in the United States and the Collateral has a book value in excess of $250,000, it has used commercially reasonable efforts to deliver a bailee agreement in form and substance reasonably acceptable to Agent. 

  
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 7.12    Deposit Accounts. Other than Excluded Accounts,
neither Borrower nor any Subsidiary shall maintain any Deposit Accounts, or accounts holding Investment Property, except with respect to which Agent has an Account Control Agreement. 

7.13    Subsidiary Formation. Borrower shall notify Agent of each Subsidiary formed subsequent to the
Closing Date and, within 15 days of formation (or such longer period as Agent may allow), shall (a) cause any such Subsidiary (other than any MSC Subsidiary) to execute and deliver to Agent a Joinder Agreement and any other documents and
filings requested by Agent pursuant to Section 7.3 and (b) execute and deliver to Agent an amendment to the Pledge Agreement and any other documentation requested by Agent to evidence a pledge of 100% of the Equity Interests of such
Subsidiary (including, for the avoidance of doubt, any MSC Subsidiary). 
 7.14    MSC Investment
Conditions. At any time that the MSC Subsidiary has any assets or liabilities, Borrower shall satisfy the MSC Investment Conditions at all times. 

7.15    Notification of Event of Default. Borrower shall notify Agent immediately of the occurrence of any
Event of Default. 
 7.16    SBIC. One or more affiliates of Agent have received a license from the U.S.
Small Business Administration (“SBA”) to extend loans as a small business investment company (“SBIC”) pursuant to the Small Business Investment Act of 1958, as amended, and the associated regulations (collectively, the “SBIC
Act”). Portions of the loan to Borrower may be made by a Lender that is an SBIC on any SBA Funding Date. Addendum 1 to this Agreement outlines various responsibilities of Agent, each Lender and Borrower associated with a loan made by a SBIC.
Addendum 1 shall be completed by Borrower on or before each SBA Funding Date and delivered to Agent, and shall thereupon be automatically incorporated in this Agreement without any further action of the parties hereto, and Agent, each Lender and
Borrower agree to the terms of such Addendum 1. 
 7.17    Use of Proceeds. Borrower agrees that the
proceeds of the Loans shall be used solely to pay related fees and expenses in connection with this Agreement and for working capital and general corporate purposes. The proceeds of the Loans will not be used in violation of Anti-Corruption Laws or
applicable Sanctions. 
 7.18    [Reserved]. 

7.19    Post-Closing Obligations. Notwithstanding any provision herein or in any other Loan Document to
the contrary, to the extent not actually delivered on or prior to the Closing Date, Borrower shall: 

(a)    Within 45 days of the Closing Date, deliver to Agent all insurance endorsements and copies of each
insurance policy required hereunder which shall be in form and substance reasonably satisfactory to Agent in its reasonable discretion; and 

  
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 (b)    Within 60 days of the Closing Date (or such later
date as Agent may agree to in its sole discretion), use commercially reasonable efforts to deliver to Agent, a fully-executed landlord waiver, in form and substance reasonably satisfactory to Agent, for Borrower’s location at: 215 First Street,
Suite 200, Cambridge, Massachusetts 02142. 
 7.20    Compliance with Laws. 

(a)    Borrower shall maintain, and shall cause its Subsidiaries to maintain, compliance in with all
applicable laws, rules or regulations (including any law, rule or regulation with respect to the making or brokering of loans or financial accommodations), except where the failure to do so would not reasonably be expected to result in a Material
Adverse Effect, and shall, or cause its Subsidiaries to, obtain and maintain all required governmental authorizations, approvals, licenses, franchises, permits or registrations, except where the failure to do so would not reasonably be expected to
result in a Material Adverse Effect. 
 (b)    Neither Borrower nor any of its Subsidiaries shall, nor
shall Borrower or any of its Subsidiaries permit any Affiliate under Borrower’s direct or indirect control to, directly or indirectly, knowingly enter into any documents, instruments, agreements or contracts with any Person listed on the OFAC
Lists. Neither Borrower nor any of its Subsidiaries shall, nor shall Borrower or any of its Subsidiaries, permit any Affiliate under Borrower’s direct or indirect control to, directly or indirectly, (i) conduct any business or engage in
any transaction or dealing with any Blocked Person, including, without limitation, the making or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked Person, (ii) deal in, or otherwise engage in any
transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224 or any similar executive order or other Anti-Terrorism Law, or (iii) engage in or conspire
to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in Executive Order No. 13224 or other
Anti-Terrorism Law. 
 (c)    Borrower has implemented and
maintains in effect policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and Borrower, its
Subsidiaries and their respective officers and employees and to the knowledge of Borrower its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. 

(d)    None of Borrower, any of its Subsidiaries or any of their respective directors, officers or
employees, or to the knowledge of Borrower, any agent for Borrower or its Subsidiaries that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No Loan, use of proceeds or other
transaction contemplated by this Agreement will violate Anti-Corruption Laws or applicable Sanctions. 

7.21    Transactions with Affiliates. Borrower shall not and shall not permit any Subsidiary to, directly
or indirectly, enter into or permit to exist any transaction of any 

  
 38 

 
kind with any Affiliate of Borrower or such Subsidiary (other than transactions constituting a Permitted Investment, Permitted Indebtedness, a Permitted Transfer or a transaction permitted by
Sections 7.7 or 7.9) on terms that are less favorable to Borrower or such Subsidiary, as the case may be, than those that might be obtained in an arm’s length transaction from a Person who is not an Affiliate of Borrower or such Subsidiary.

 SECTION 8. [RESERVED]. 

SECTION 9. EVENTS OF DEFAULT 

The occurrence of any one or more of the following events shall be an Event of Default: 

9.1    Payments. Borrower fails to (i) pay any principal, interest, fees or other scheduled amount
due under this Agreement or any of the other Loan Documents on the due date; provided, however, that an Event of Default shall not occur on account of a failure to pay due solely to an administrative or operational error of Agent or Lender or
Borrower’s bank if Borrower had the funds to make the payment when due and makes the payment within three (3) Business Days following Borrower’s knowledge of such failure to pay, or (ii) fails to pay any non-scheduled amounts within five (5) days after demand by Lender; or 

9.2    Covenants. Borrower breaches or defaults in the performance of any covenant or Secured Obligation
under this Agreement, or any of the other Loan Documents, and (a) with respect to a default under any covenant under this Agreement (other than under Sections 6, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.14, 7.15, 7.16, 7.17, 7.19 and 7.20), and any
other Loan Document, such default continues for more than ten (10) Business Days after the earlier of the date on which (i) Agent or Lender has given notice of such default to Borrower and (ii) Borrower has actual knowledge of such
default or (b) with respect to a default under any of Sections 6, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.14, 7.15, 7.16, 7.17, 7.19 and 7.20 the occurrence of such default; or 

9.3    Material Adverse Effect. A circumstance has occurred that could reasonably be expected to have a
Material Adverse Effect; provided that solely for purposes of this Section 9.3, the occurrence of any of the following, in and of itself, shall not constitute a Material Adverse Effect: (a) adverse results or delays in any nonclinical or
clinical trial, including without limitation, the failure to demonstrate the desired safety or efficacy of any drug or companion diagnostic; or (b) the denial, delay or limitation of approval of, or taking of any other regulatory action by, the
United States Food and Drug Administration or any other governmental entity with respect to any drug or companion diagnostic; or 

9.4    Representations. Any representation or warranty made by Borrower in any Loan Document shall have
been false or misleading in any material respect when made or when deemed made; or 
 9.5    Insolvency.
Borrower (A) (i) shall make an assignment for the benefit of creditors; or (ii) shall be unable to pay its debts as they become due, or be unable to pay 

  
 39 

 
the Secured Obligations under the Loan Documents, or shall become insolvent; or (iii) shall file a voluntary petition in bankruptcy; or (iv) shall file any petition, answer, or document
seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation pertinent to such circumstances; or (v) shall seek or consent to or
acquiesce in the appointment of any trustee, receiver, or liquidator of Borrower or of all or any substantial part (i.e., 33-1/3% or more) of the assets or property of Borrower; or (vi) shall cease
operations of its business as its business has normally been conducted for a period of more than three (3) consecutive Business Days, or terminate substantially all of its employees; or (vii) Borrower or its directors or majority
shareholders shall take any action initiating any of the foregoing actions described in clauses (i) through (vi); or (B) either (i) forty-five (45) days shall have expired after the commencement of an involuntary action against
Borrower seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, without such action being dismissed or all orders or proceedings thereunder
affecting the operations or the business of Borrower being stayed; or (ii) a stay of any such order or proceedings shall thereafter be set aside and the action setting it aside shall not be timely appealed; or (iii) Borrower shall file any
answer admitting or not contesting the material allegations of a petition filed against Borrower in any such proceedings; or (iv) the court in which such proceedings are pending shall enter a decree or order granting the relief sought in any
such proceedings; or (v) forty-five (45) days shall have expired after the appointment, without the consent or acquiescence of Borrower, of any trustee, receiver or liquidator of Borrower or of all or any substantial part of the properties
of Borrower without such appointment being vacated; or 
 9.6    Attachments; Judgments. Any portion of
Borrower’s assets with a fair market value, individually or in the aggregate, of at least $500,000, is attached or seized, or a levy is filed against any such assets, or a judgment or judgments is/are entered for the payment of money (not
covered by independent third party insurance as to which liability has not been rejected by such insurance carrier), individually or in the aggregate, of at least $500,000 and shall remain unsatisfied, unvacated, or unstayed for a period of ten
(10) days after the entry thereof (provided that no Advances will be made prior to the satisfaction, vacation, or stay of such judgment, order, or decree), or Borrower is enjoined or in any way prevented by court order from conducting any
material part of its business; or 
 9.7    Other Obligations. The occurrence of any default under any
agreement or obligation of Borrower involving any Indebtedness in excess of $500,000 resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of such Indebtedness. 

SECTION 10. REMEDIES 

10.1    General. Upon and during the continuance of any one or more Events of Default, (i) Agent may,
and at the direction of the Required Lenders, shall accelerate and demand payment of all or any part of the Secured Obligations together with a Prepayment 

  
 40 

 
Charge and declare them to be immediately due and payable (provided, that upon the occurrence of an Event of Default of the type described in Section 9.5, all of the Secured Obligations
(including, without limitation, the Prepayment Charge and the End of Term Charge) shall automatically be accelerated and made due and payable, in each case without any further notice or act), (ii) Agent may, at its option, sign and file in
Borrower’s name any and all collateral assignments, notices, control agreements, security agreements and other documents it deems necessary or appropriate to perfect or protect the repayment of the Secured Obligations, and in furtherance
thereof, Borrower hereby grants Agent an irrevocable power of attorney coupled with an interest, and (iii) Agent may notify any of Borrower’s account debtors to make payment directly to Agent, compromise the amount of any such account on
Borrower’s behalf and endorse Agent’s name without recourse on any such payment for deposit directly to Agent’s account. Upon and during the continuance of any one or more Events of Default, Agent may, and at the direction of the
Required Lenders shall, exercise all rights and remedies with respect to the Collateral under the Loan Documents or otherwise available to it under the UCC and other applicable law, including the right to release, hold, sell, lease, liquidate,
collect, realize upon, or otherwise dispose of all or any part of the Collateral and the right to occupy, utilize, process and commingle the Collateral. All Agent’s rights and remedies shall be cumulative and not exclusive. 

10.2    Collection; Foreclosure. Upon the occurrence and during the continuance of any Event of Default,
Agent may, and at the direction of the Required Lenders shall, at any time or from time to time, apply, collect, liquidate, sell in one or more sales, lease or otherwise dispose of, any or all of the Collateral, in its then condition or following
any commercially reasonable preparation or processing, in such order as Agent may elect. Any such sale may be made either at public or private sale at its place of business or elsewhere. Borrower agrees that any such public or private sale may occur
upon ten (10) calendar days’ prior written notice to Borrower. Agent may require Borrower to assemble the Collateral and make it available to Agent at a place designated by Agent that is reasonably convenient to Agent and Borrower. The
proceeds of any sale, disposition or other realization upon all or any part of the Collateral shall be applied by Agent in the following order of priorities: 

First, to Agent and Lender in an amount sufficient to pay in full Agent’s and Lender’s reasonable costs and professionals’ and
advisors’ fees and expenses as described in Section 11.11; 
 Second, to Lender in an amount equal to the then unpaid amount of the
Secured Obligations (including principal, interest, and the Default Rate interest), in such order and priority as Agent may choose in its sole discretion; and 

Finally, after the full and final payment in Cash of all of the Secured Obligations (other than inchoate obligations), to any creditor holding
a junior Lien on the Collateral, or to Borrower or its representatives or as a court of competent jurisdiction may direct. 
 Agent shall be deemed to have
acted reasonably in the custody, preservation and disposition of any of the Collateral if it complies with the obligations of a secured party under the UCC. 

  
 41 

 10.3    No Waiver. Agent shall be under no obligation to
marshal any of the Collateral for the benefit of Borrower or any other Person, and Borrower expressly waives all rights, if any, to require Agent to marshal any Collateral. 

10.4    Cumulative Remedies. The rights, powers and remedies of Agent hereunder shall be in addition to
all rights, powers and remedies given by statute or rule of law and are cumulative. The exercise of any one or more of the rights, powers and remedies provided herein shall not be construed as a waiver of or election of remedies with respect to any
other rights, powers and remedies of Agent. 
 SECTION 11. MISCELLANEOUS 

11.1    Severability. Whenever possible, each provision of this Agreement shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under such law, such provision shall be ineffective only to the extent and duration of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions of this Agreement. 

11.2    Notice. Except as otherwise provided herein, any notice, demand, request, consent, approval,
declaration, service of process or other communication (including the delivery of Financial Statements) that is required, contemplated, or permitted under the Loan Documents or with respect to the subject matter hereof shall be in writing, and shall
be deemed to have been validly served, given, delivered, and received upon the earlier of: (i) the day of transmission by electronic mail or hand delivery or delivery by an overnight express service or overnight mail delivery service; or
(ii) the third calendar day after deposit in the United States of America mails, with proper first class postage prepaid, in each case addressed to the party to be notified as follows: 

(a)    If to Agent: 

HERCULES CAPITAL, INC. 
 Legal
Department 
 Attention: Chief Legal Officer and Michael Dutra and Bryan Jadot 

400 Hamilton Avenue, Suite 310 

Palo Alto, CA 94301 
 email:
legal@herculestech.com; mdutra@htgc.com; bjadot@htgc.com 
 Telephone:
650-289-3060 
 (b)    If
to Lender: 
 HERCULES CAPITAL, INC. 

Legal Department 
 Attention:
Chief Legal Officer and Michael Dutra and Bryan Jadot 
 400 Hamilton Avenue, Suite 310 

Palo Alto, CA 94301 
 email:
legal@herculestech.com; mdutra@htgc.com; bjadot@htgc.com 
 Telephone:
650-289-3060 

  
 42 

 (c)    If to Borrower: 

CONSTELLATION PHARMACEUTICALS, INC. 

Attention: Karen H. Valentine, Chief Legal Officer & General Counsel 

215 First Street, Suite 200 Cambridge, MA 02142 

email: Karen.Valentine@constellationpharma.com 

Telephone: 617-714-0538 

with a copy to: 
 Wilmer Cutler
Pickering Hale and Dorr LLP 
 Attention: Chalyse Robinson 

1225 Seventeenth St., Suite 2600 

Denver, CO 80202 USA 
 email:
Chalyse.Robinson@wilmerhale.com 
 Telephone: 720-598-3442

 or to such other address as each party may designate for itself by like notice. 

11.3    Entire Agreement; Amendments. 

(a)    This Agreement and the other Loan Documents constitute the entire agreement and understanding of the
parties hereto in respect of the subject matter hereof and thereof, and supersede and replace in their entirety any prior proposals, term sheets, non-disclosure or confidentiality agreements, letters,
negotiations or other documents or agreements, whether written or oral, with respect to the subject matter hereof or thereof (including without limitation Agent’s revised proposal letter dated February 10, 2019 and the Non-Disclosure Agreement). 
 (b)    Neither this Agreement, any other
Loan Document, nor any terms hereof or thereof may be amended, supplemented or modified except in accordance with the provisions of this Section 11.3(b). The Required Lenders and Borrower party to the relevant Loan Document may, or, with the
written consent of the Required Lenders, the Agent and the Borrower party to the relevant Loan Document may, from time to time, (i) enter into written amendments, supplements or modifications hereto and to the other Loan Documents for the
purpose of adding any provisions to this Agreement or the other Loan Documents or changing in any manner the rights of the Lenders or of the Borrower hereunder or thereunder or (ii) waive, on such terms and conditions as the Required Lenders or
the Agent, as the case may be, may specify in such instrument, any of the requirements of this Agreement or the other Loan Documents or any default or Event of Default and its consequences; provided, however, that no such waiver and no such

  
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amendment, supplement or modification shall (A) forgive the principal amount or extend the final scheduled date of maturity of any Loan, extend the scheduled date of any amortization payment
in respect of any Term Loan, reduce the stated rate of any interest or fee payable hereunder (other than a waiver of default interest pursuant to Section 2.4 hereof) or extend the scheduled date of any payment thereof, in each case without the
written consent of each Lender directly affected thereby; (B) eliminate or reduce the voting rights of any Lender under this Section 11.3(b) without the written consent of such Lender; (C) reduce any percentage specified in the
definition of Required Lenders, consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement and the other Loan Documents, release all or substantially all of the Collateral or release a Borrower
from its obligations under the Loan Documents, in each case without the written consent of all Lenders; or (D) amend, modify or waive any provision of Section 11.17 without the written consent of the Agent. Any such waiver and any such
amendment, supplement or modification shall apply equally to each Lender and shall be binding upon Borrower, the Lender, the Agent and all future holders of the Loans. 

11.4    No Strict Construction. The parties hereto have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provisions of this Agreement. 
 11.5    No
Waiver. The powers conferred upon Agent and Lender by this Agreement are solely to protect its rights hereunder and under the other Loan Documents and its interest in the Collateral and shall not impose any duty upon Agent or Lender to exercise any
such powers. No omission or delay by Agent or Lender at any time to enforce any right or remedy reserved to it, or to require performance of any of the terms, covenants or provisions hereof by Borrower at any time designated, shall be a waiver of
any such right or remedy to which Agent or Lender is entitled, nor shall it in any way affect the right of Agent or Lender to enforce such provisions thereafter. 

11.6    Survival. All agreements, representations and warranties contained in this Agreement and the other
Loan Documents or in any document delivered pursuant hereto or thereto shall be for the benefit of Agent and Lender and shall survive the execution and delivery of this Agreement. Sections 2.9, 6.3 and 11.17(b) shall survive the termination of this
Agreement. Each party’s obligations under Section 2.9 shall survive the resignation or replacement of the Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Term Commitment and the repayment,
satisfaction or discharge of all obligations under any Loan Document. 
 11.7    Successors and Assigns.
The provisions of this Agreement and the other Loan Documents shall inure to the benefit of and be binding on Borrower and its permitted assigns (if any). Borrower shall not assign its obligations under this Agreement or any of the other Loan
Documents without Agent’s express prior written consent, and any such attempted assignment shall be void and of no effect. Agent and Lender may 

  
 44 

 
assign, transfer, or endorse its rights hereunder and under the other Loan Documents without prior notice to Borrower, and all of such rights shall inure to the benefit of Agent’s and
Lender’s successors and assigns; provided that as long as no Event of Default has occurred and is continuing, neither Agent nor any Lender may assign, transfer or endorse its rights hereunder or under the Loan Documents to any party that is a
direct competitor of Borrower (as reasonably determined by Agent), it being acknowledged that in all cases, any transfer to an Affiliate of any Lender or Agent shall be allowed. Notwithstanding the foregoing, (x) in connection with any
assignment by a Lender as a result of a forced divestiture at the request of any regulatory agency, the restrictions set forth herein shall not apply and Agent and Lender may assign, transfer or indorse its rights hereunder and under the other Loan
Documents to any Person or party and (y) in connection with a Lender’s own financing or securitization transactions, the restrictions set forth herein shall not apply and Agent and Lender may assign, transfer or indorse its rights
hereunder and under the other Loan Documents to any Person or party providing such financing or formed to undertake such securitization transaction and any transferee of such Person or party upon the occurrence of a default, event of default or
similar occurrence with respect to such financing or securitization transaction; provided that no such sale, transfer, pledge or assignment under this clause (y) shall release such Lender from any of its obligations hereunder or substitute any
such Person or party for such Lender as a party hereto until Agent shall have received and accepted an effective assignment agreement from such Person or party in form satisfactory to Agent executed, delivered and fully completed by the applicable
parties thereto, and shall have received such other information regarding such assignee as Agent reasonably shall require. The Agent, acting solely for this purpose as an agent of Borrower, shall maintain a register for the recordation of the names
and addresses of the Lenders and principal amounts (and state interest) of the Term Loans owing to each Lender pursuant to the terms hereof from time to time. The register shall be available for inspection by Borrower, from time to time upon
reasonable prior notice. 
 11.8    Governing Law. This Agreement and the other Loan Documents have been
negotiated and delivered to Agent and Lender in the State of New York. This Agreement and the other Loan Documents shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, excluding conflict of laws
principles that would cause the application of laws of any other jurisdiction. 
 11.9    CONSENT TO
JURISDICTION AND VENUE. ALL JUDICIAL PROCEEDINGS ARISING IN OR UNDER OR RELATED TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN ANY STATE COURT LOCATED IN THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, AND IN THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURTS FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT
OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK COURT OR, TO THE  

  
 45 

 
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A NON-APPEALABLE FINAL JUDGMENT IN ANY SUCH
ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT AGENT
OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWER OR ANY OTHER LOAN PARTY OR ITS OR THEIR PROPERTIES IN THE COURTS OF ANY JURISDICTION. BORROWER AND EACH OTHER
LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN THIS SECTION 11.9. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT. SERVICE OF PROCESS ON ANY PARTY HERETO IN ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE EFFECTIVE IF GIVEN IN ACCORDANCE WITH THE REQUIREMENTS FOR NOTICE SET FORTH IN SECTION 11.2, AND SHALL BE DEEMED
EFFECTIVE AND RECEIVED AS SET FORTH IN SECTION 11.2. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 

11.10    Mutual Waiver of Jury Trial. Because disputes arising in connection with complex financial
transactions are most quickly and economically resolved by an experienced and expert Person and the parties wish applicable state and federal laws to apply (rather than arbitration rules), the parties desire that their disputes be resolved by a
judge applying such applicable laws. EACH OF BORROWER, AGENT AND LENDER SPECIFICALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY,
“CLAIMS”) ASSERTED BY BORROWER AGAINST AGENT, LENDER OR THEIR RESPECTIVE ASSIGNEE OR BY AGENT, LENDER OR THEIR RESPECTIVE ASSIGNEE AGAINST BORROWER. This waiver extends to all such Claims, including Claims that involve Persons other than
Agent, Borrower and Lender; Claims that arise out of or are in any way connected to the relationship among Borrower, Agent and Lender; and any Claims for damages, breach of contract, tort, specific performance, or any equitable or legal relief of
any kind, arising out of this Agreement, any other Loan Document. 
 11.11    Professional Fees.
Borrower promises to pay Agent’s and Lender’s reasonable and documented fees and expenses necessary to finalize the loan 

  
 46 

 
documentation, including but not limited to reasonable and documented out-of-pocket attorneys’ fees, UCC
searches, filing costs, and other miscellaneous expenses. In addition, Borrower promises to pay any and all reasonable and documented out-of-pocket attorneys’ and
other professionals’ fees and expenses incurred by Agent and Lender after the Closing Date in connection with or related to: (a) the Loan; (b) the administration, collection, or enforcement of the Loan; (c) the amendment or
modification of the Loan Documents; (d) any waiver, consent, release, or termination under the Loan Documents; (e) the protection, preservation, audit, field exam, sale, lease, liquidation, or disposition of Collateral or the exercise of
remedies with respect to the Collateral; (f) any legal, litigation, administrative, arbitration, or out of court proceeding in connection with or related to Borrower or the Collateral, and any appeal or review thereof; and (g) any
bankruptcy, restructuring, reorganization, assignment for the benefit of creditors, workout, foreclosure, or other action related to Borrower, the Collateral, the Loan Documents, including representing Agent or Lender in any adversary proceeding or
contested matter commenced or continued by or on behalf of Borrower’s estate, and any appeal or review thereof. 

11.12    Confidentiality. Agent and Lender acknowledge that certain items of Collateral and information
provided to Agent and Lender by Borrower are confidential and proprietary information of Borrower, if and to the extent such information either (x) is marked as confidential by Borrower at the time of disclosure, or (y) should reasonably
be understood to be confidential (the “Confidential Information”). Accordingly, Agent and Lender agree that any Confidential Information it may obtain in the course of acquiring, administering, or perfecting Agent’s security interest
in the Collateral or otherwise in the negotiation, execution and administration of this Agreement and the other Loan Documents and the transactions contemplated thereby shall not be disclosed to any other Person or entity in any manner whatsoever,
in whole or in part, without the prior written consent of Borrower, except that Agent and Lender may disclose any such information: (a) to its own directors, officers, employees, accountants, counsel and other professional advisors and to its
Affiliates if Agent or Lender in their reasonable discretion determines that any such party should have access to such information in connection with such party’s responsibilities in connection with the Loan or this Agreement and, provided that
such recipient of such Confidential Information either (i) agrees to be bound by the confidentiality provisions of this paragraph or (ii) is otherwise subject to confidentiality restrictions that reasonably protect against the disclosure
of Confidential Information; (b) if such information is generally available to the public without any disclosure by Agent or Lender that would otherwise breach this Section; (c) if required or appropriate in any report, statement or
testimony submitted to any governmental authority having or claiming to have jurisdiction over Agent or Lender; (d) if required or appropriate in response to any summons or subpoena or in connection with any litigation, to the extent permitted
or deemed advisable by Agent’s or Lender’s counsel; (e) to comply with any legal requirement or law applicable to Agent or Lender; (f) to the extent reasonably necessary in connection with the exercise of any right or remedy
under any Loan Document, including Agent’s sale, lease, or other disposition of Collateral during the continuation of an Event of Default; (g) to any participant or assignee of Agent or Lender or any prospective participant or assignee;
provided, that such participant or assignee or prospective 

  
 47 

 
participant or assignee agrees in writing to be bound by this Section prior to disclosure; or (h) otherwise with the prior written consent of Borrower; provided, that any disclosure made in
violation of this Agreement shall not affect the obligations of Borrower or any of its Affiliates or any guarantor under this Agreement or the other Loan Documents. Agent’s and Lender’s obligations under this Section 11.12 shall
supersede all of their respective obligations under the Non-Disclosure Agreement. 

11.13     Assignment of Rights. Borrower acknowledges and understands that Agent or Lender may, in
accordance with Section 11.7, sell and assign all or part of its interest hereunder and under the Loan Documents to any Person or entity (an “Assignee”). After such assignment the term “Agent” or “Lender” as used
in the Loan Documents shall mean and include such Assignee, and such Assignee shall be vested with all rights, powers and remedies of Agent and Lender hereunder with respect to the interest so assigned; but with respect to any such interest not so
transferred, Agent and Lender shall retain all rights, powers and remedies hereby given. No such assignment by Agent or Lender shall relieve Borrower of any of its obligations hereunder. Lender agrees that in the event of any transfer by it of the
Note(s)(if any), it will endorse thereon a notation as to the portion of the principal of the Note(s), which shall have been paid at the time of such transfer and as to the date to which interest shall have been last paid thereon. 

11.14    Revival of Secured Obligations. This Agreement and the Loan Documents shall remain in full force
and effect and continue to be effective if any petition is filed by or against Borrower for liquidation or reorganization, if Borrower becomes insolvent or makes an assignment for the benefit of creditors, if a receiver or trustee is appointed for
all or any significant part of Borrower’s assets, or if any payment or transfer of Collateral is recovered from Agent or Lender. The Loan Documents and the Secured Obligations and Collateral security shall continue to be effective, or shall be
revived or reinstated, as the case may be, if at any time payment and performance of the Secured Obligations or any transfer of Collateral to Agent, or any part thereof is rescinded, avoided or avoidable, reduced in amount, or must otherwise be
restored or returned by, or is recovered from, Agent, Lender or by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment, performance, or
transfer of Collateral had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, avoided, avoidable, restored, returned, or recovered, the Loan Documents and the Secured Obligations shall be deemed, without any
further action or documentation, to have been revived and reinstated except to the extent of the full, final, and indefeasible payment to Agent or Lender in Cash. 

11.15    Counterparts. This Agreement and any amendments, waivers, consents or supplements hereto may be
executed in any number of counterparts, and by different parties hereto in separate counterparts, each of which when so delivered shall be deemed an original, but all of which counterparts shall constitute but one and the same instrument. 

11.16    No Third Party Beneficiaries. No provisions of the Loan Documents are intended, nor will be
interpreted, to provide or create any third-party beneficiary rights or any other rights of any kind in any Person other than Agent, Lender and Borrower unless specifically provided otherwise herein, and, except as otherwise so provided, all
provisions of the Loan Documents will be personal and solely among Agent, the Lender and the Borrower. 

  
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 11.17    Agency. 

(a)    Lender hereby irrevocably appoints Hercules Capital, Inc. to act on its behalf as the Agent
hereunder and under the other Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise such powers as are delegated to the Agent by the terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto. 
 (b)    Lender agrees to indemnify the Agent in its capacity as such (to
the extent not reimbursed by Borrower and without limiting the obligation of Borrower to do so), according to its respective Term Commitment percentages (based upon the total outstanding Term Loan Commitments) in effect on the date on which
indemnification is sought under this Section 11.17, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time be
imposed on, incurred by or asserted against the Agent in any way relating to or arising out of, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby
or thereby or any action taken or omitted by the Agent under or in connection with any of the foregoing. 

(c)    Agent in Its Individual Capacity. The Person serving as the Agent hereunder shall have the same
rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Agent and the term “Lender” shall, unless otherwise expressly indicated or unless the context otherwise requires, include
each such Person serving as Agent hereunder in its individual capacity. 
 (d)    Exculpatory Provisions.
The Agent shall have no duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Agent shall not: 

 

	 	(i)	 be subject to any fiduciary or other implied duties, regardless of whether any default or any Event of Default
has occurred and is continuing; 

  

	 	(ii)	 have any duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents that the Agent is required to exercise as directed in writing by the Lender, provided that the Agent shall not be required to take any action that, in its opinion or the
opinion of its counsel, may expose the Agent to liability or that is contrary to any Loan Document or applicable law; and 

  
 49 

	 	(iii)	 except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and the Agent
shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by any Person serving as the Agent or any of its Affiliates in any capacity.

 (e)    The Agent shall not be liable for any action taken or not taken by it
(i) with the consent or at the request of the Lender or as the Agent shall believe in good faith shall be necessary, under the circumstances or (ii) in the absence of its own gross negligence or willful misconduct. 

(f)    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 or Event of Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Section 4 or elsewhere herein, other than to confirm receipt of
items expressly required to be delivered to the Agent. 
 (g)    Reliance by Agent. Agent may rely, and
shall be fully protected in acting, or refraining to act, upon, any resolution, statement, certificate, instrument, opinion, report, notice, request, consent, order, bond or other paper or document that it has no reason to believe to be other than
genuine and to have been signed or presented by the proper party or parties or, in the case of cables, telecopies and telexes, to have been sent by the proper party or parties. In the absence of its gross negligence or willful misconduct, Agent may
conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to Agent and conforming to the requirements of the Loan Agreement or any of the other Loan
Documents. Agent may consult with counsel, and any opinion or legal advice of such counsel shall be full and complete authorization and protection in respect of any action taken, not taken or suffered by Agent hereunder or under any Loan Documents
in accordance therewith. Agent shall have the right at any time to seek instructions concerning the administration of the Collateral from any court of competent jurisdiction. Agent shall not be under any obligation to exercise any of the rights or
powers granted to Agent by this Agreement, the Loan Agreement and the other Loan Documents at the request or direction of Lenders unless Agent shall have been provided by Lender with adequate security and indemnity against the costs, expenses and
liabilities that may be incurred by it in compliance with such request or direction. 

11.18    Publicity. None of the parties hereto nor any of its respective member businesses and Affiliates
shall, without the other parties’ prior written consent (which shall not be unreasonably withheld or delayed), publicize or use (a) the other party’s name (including a brief description of the relationship among the parties hereto),
logo or 

  
 50 

 
hyperlink to such other parties’ web site, separately or together, in written and oral presentations, advertising, promotional and marketing materials, client lists, public relations
materials or on its web site (together, the “ Publicity Materials”); (b) the names of officers of such other parties in the Publicity Materials; and (c) such other parties’ name, trademarks, servicemarks in any news or press
release concerning such party; provided however, notwithstanding anything to the contrary herein, no such consent shall be required (i) to the extent necessary to comply with the requests of any regulators, legal requirements or laws applicable
to such party, pursuant to any listing agreement with any national securities exchange (so long as such party provides prior notice to the other party hereto to the extent reasonably practicable, provided, that all parties acknowledge and agree and
no prior notice is required for Borrower to describe this Agreement and the transactions hereunder in their filings with the SEC) and (ii) to comply with Section 11.12. 

(SIGNATURES TO FOLLOW) 

  
 51 

 IN WITNESS WHEREOF, Borrower, Agent and Lender have duly executed and delivered this Loan
and Security Agreement as of the day and year first above written. 
  

			
	BORROWER:
	
	CONSTELLATION PHARMACEUTICALS, INC.
		
	Signature:	 	/s/ Emma Reeve
	Print Name:	 	Emma Reeve
	Title:	 	Chief Financial Officer

  
 [Signature Page to Loan
and Security Agreement] 

 
			
	AGENT:
	
	HERCULES CAPITAL, INC.
		
	Signature:	 	/s/ Jennifer Choe
	Print Name:	 	Jennifer Choe
	Title:	 	Assistant General Counsel
	
	LENDER:
	
	HERCULES CAPITAL, INC.
		
	Signature:	 	/s/ Jennifer Choe
	Print Name:	 	Jennifer Choe
	Title:	 	Assistant General Counsel

  
 [Signature Page to Loan
and Security Agreement] 

 Table of Addenda, Exhibits and Schedules 

 

			
	Addendum 1:	  	SBA Provisions
		
	Exhibit A:	  	Advance Request
		  	Attachment to Advance Request
		
	Exhibit B:	  	Term Note
		
	Exhibit C:	  	Name, Locations, and Other Information for Borrower
		
	Exhibit D:	  	Borrower’s Patents, Trademarks, Copyrights and Licenses
		
	Exhibit E:	  	Borrower’s Deposit Accounts and Investment Accounts
		
	Exhibit F:	  	Compliance Certificate
		
	Exhibit G:	  	Joinder Agreement
		
	Exhibit I:	  	ACH Debit Authorization Agreement
		
	Schedule 1	  	Subsidiaries
	Schedule 1.1	  	Commitments
	Schedule 1A	  	Existing Permitted Indebtedness
	Schedule 1B	  	Existing Permitted Investments
	Schedule 1C	  	Existing Permitted Liens
	Schedule 5.3	  	Consents, Etc.
		
	Schedule 5.8	  	Tax Matters
	Schedule 5.9	  	Intellectual Property Claims
	Schedule 5.10	  	Intellectual Property
	Schedule 5.11	  	Borrower Products
	Schedule 5.14	  	Capitalization

 ADDENDUM 1 to LOAN AND SECURITY AGREEMENT 

(a)    Borrower’s Business. For purposes of this Addendum 1, Borrower shall be deemed to
include its “affiliates” as defined in Title 13 Code of Federal Regulations Section 121.103. Borrower represents and warrants to Agent and Lender as of each SBA Funding Date and covenants to Agent and Lender for a period of one year
after each SBA Funding Date or for such longer period as set forth below, with respect to subsections 2, 3, 4, 5, 6 and 7 below, as follows: 
  

	 	1.	 Size Status. Borrower’s primary NAICS code is
             and has less than             _ employees in the aggregate; 

 

	 	2.	 No Relender. Borrower’s primary business activity does not involve, directly or indirectly, providing
funds to others, purchasing debt obligations, factoring, or long-term leasing of equipment with no provision for maintenance or repair; 

  

	 	3.	 No Passive Business. Borrower is engaged in a regular and continuous business operation (excluding the mere
receipt of payments such as dividends, rents, lease payments, or royalties). Borrower’s employees are carrying on the majority of day to day operations. Borrower will not pass through substantially all of the proceeds of the Loan to another
entity; 

  

	 	4.	 No Real Estate Business. Borrower is not classified under North American Industry Classification System (NAICS)
codes 531110 (lessors of residential buildings and dwellings), 531120 (lessors of nonresidential buildings except miniwarehouses), 531190 (lessors of other real estate property), 237210 (land subdivision), or 236117 (new housing for-sale builders). Borrower is not classified under NAICS codes 236118 (residential remodelers), 236210 (industrial building construction), or 236220 (commercial and institutional building construction), if
Borrower is primarily engaged in construction or renovation of properties on its own account rather than as a hired contractor. Borrower is not classified under NAICS codes 531210 (offices of real estate agents and brokers), 531311 (residential
property managers), 531312 (nonresidential property managers), 531320 (offices of real estate appraisers), or 531390 (other activities related to real estate), unless it derives at least 80 percent of its revenue from non-Affiliate sources. The proceeds of the Loan will not be used to acquire or refinance real property unless Borrower (x) is acquiring an existing property and will use at least 51 percent of the
usable square footage for its business purposes; (y) is building or renovating a building and will use at least 67 percent of the usable square footage for its business purposes; or (z) occupies the subject property and uses at least
67 percent of the usable square footage for its business purposes. 

	 	5.	 No Project Finance. Borrower’s assets are not intended to be reduced or consumed, generally without
replacement, as the life of its business progresses, and the nature of Borrower’s business does not require that a stream of cash payments be made to the business’s financing sources, on a basis associated with the continuing sale of
assets (e.g., real estate development projects and oil and gas wells). The primary purpose of the Loan is not to fund production of a single item or defined limited number of items, generally over a defined production period, where such production
will constitute the majority of the activities of Borrower (e.g., motion pictures and electric generating plants). 

  

	 	6.	 No Farm Land Purchases. Borrower will not use the proceeds of the Loan to acquire farm land which is or is
intended to be used for agricultural or forestry purposes, such as the production of food, fiber, or wood, or is so taxed or zoned. 

  

	 	7.	 No Foreign Investment. The proceeds of the Loan will not be used substantially for a foreign operation.
Borrower will not have, on or within one year after each SBA Funding Date and each other Loan provided by a Lender that is an SBIC more than 49 percent of its employees or tangible assets located outside the United States of America.

 (b)    Small Business Administration Documentation. Agent and Lender
acknowledge that Borrower completed, executed and delivered to Agent prior to each SBA Funding Date SBA Forms 480, 652 and 1031 (Parts A and B) together with a business plan showing Borrower’s financial projections (including balance
sheets and income and cash flows statements) for the period described therein and a written statement (whether included in the purchase agreement or pursuant to a separate statement) from Agent regarding its intended use of proceeds from the sale of
securities to Lender (the “Use of Proceeds Statement”). Borrower represents and warrants to Agent and Lender that the information regarding Borrower and its affiliates set forth in the SBA Form 480, Form 652 and
Form 1031 and the Use of Proceeds Statement delivered as of each SBA Funding Date is accurate and complete. 

(c)    Inspection. The following covenants contained in this Section (c) are
intended to supplement and not to restrict the related provisions of the Loan Documents. Subject to the preceding sentence, Borrower will permit, for so long as Lender holds any debt or equity securities of Borrower, Agent, Lender or their
representative, at Agent’s or Lenders’ expense, and examiners of the SBA to visit and inspect the properties and assets of Borrower, to examine its books of account and records, and to discuss Borrower’s affairs, finances and accounts
with Borrower’s officers, senior management and accountants, all at such reasonable times as may be requested by Agent or Lender or the SBA. 

 (d)    Annual Assessment. Upon request of
Agent or Lender, promptly after the end of each calendar year (but in any event prior to February 28 of each year) and at such other times as may be reasonably requested by Agent or Lender, Borrower will deliver to Agent a written assessment of
the economic impact of Lender’s investment in Borrower, specifying the full-time equivalent jobs created or retained in connection with the investment, the impact of the investment on the businesses of Borrower in terms of expanded revenue and
taxes, other economic benefits resulting from the investment (such as technology development or commercialization, minority business development, or expansion of exports) and such other information as may be required regarding Borrower in connection
with the filing of Lender’s SBA Form 468. Lender will assist Borrower with preparing such assessment. In addition to any other rights granted hereunder, Borrower will grant Agent and Lender and the SBA access to Borrower’s books
and records for the purpose of verifying the use of such proceeds. Borrower also will furnish or cause to be furnished to Agent and Lender such other information regarding the business, affairs and condition of Borrower as Agent or Lender may
from time to time reasonably request, and such information shall be certified by the President, Chief Executive Officer or Chief Financial Officer of Borrower to the extent requested by Agent or Lender for compliance with the SBIC Act. 

(e)    Use of Proceeds. Borrower will use the proceeds from the Loan only for purposes set
forth in Section 7.17. Borrower will deliver to Agent from time to time promptly following Agent’s request, a written report, certified as correct by Borrower’s Chief Financial Officer, verifying the purposes and amounts for which
proceeds from the Loan have been disbursed. Borrower will supply to Agent such additional information and documents as Agent reasonably requests with respect to its use of proceeds and will, to the extent required by Section 7.2, permit
Agent and Lender and the SBA to have access to any and all Borrower records and information and personnel as Agent deems necessary to verify how such proceeds have been or are being used, and to assure that the proceeds have been used for the
purposes specified in Section 7.17. 
 (f)    Activities and Proceeds. Neither Borrower nor
any of its affiliates (if any) will engage in any activities or use directly or indirectly the proceeds from the Loan for any purpose for which a small business investment company is prohibited from providing funds by the SBIC Act, including
13 C.F.R. §107.720. Without obtaining the prior written approval of Agent, Borrower will not change within 1 year of the SBA Funding Date, Borrower’s current business activity to a business activity which a licensee under the
SBIC Act is prohibited from providing funds by the SBIC Act. 
 (g)    [Reserved]. 

(h)    Compliance and Resolution. Borrower agrees that a failure to comply with Borrower’s
obligations under this Addendum, or any other set of facts or circumstances where it has been asserted by any governmental regulatory agency (or Agent or Lender believes that there is a substantial risk of such assertion) that Agent, Lender and
their 

 
affiliates are not entitled to hold, or exercise any significant right with respect to, any securities issued to Lender by Borrower, will constitute a breach of the obligations of Borrower under
the financing agreements among Borrower, Agent and Lender. In the event of (i) a failure to comply with Borrower’s obligations under this Addendum; or (ii) an assertion by any governmental regulatory agency (or Agent or Lender
believes that there is a substantial risk of such assertion) of a failure to comply with Borrower’s obligations under this Addendum, then (i) Agent, Lender and Borrower will meet and resolve any such issue in good faith to the satisfaction
of Borrower, Agent, Lender, and any governmental regulatory agency, and (ii) upon request of Lender or Agent, Borrower will cooperate and assist with any assignment of the financing agreements among Hercules Technology III, L.P. and Hercules
Capital, Inc. 

 EXHIBIT A 

ADVANCE REQUEST 
  

							
	To:	  	Agent:	  	                	  	Date:            
                        , 20[    ]

 Hercules Capital, Inc. (the “Agent”) 

400 Hamilton Avenue, Suite 310 

Palo Alto, CA 94301 
 email:
legal@herculestech.com 
 Attn: 
 Constellation
Pharmaceuticals, Inc., a Delaware corporation (“Borrower”) hereby requests from Hercules Capital, Inc. (“Lender”) an Advance in the amount of
                     Dollars
($                    ) on
                    ,              (the “Advance Date”) pursuant
to the Loan and Security Agreement among Borrower, Agent and Lender (the “Agreement”). Capitalized words and other terms used but not otherwise defined herein are used with the same meanings as defined in the Agreement. 

Please: 
  

	 	(a)	 Issue a check payable to Borrower
                     

or 
  

	 	(b)	 Wire Funds to Borrower’s account
                    [LAST 3 DIGITS] 

  

			
	Bank:	  	                                    

	Address:	  	                                    

		  	                                    

	ABA Number:	  	                                    

	Account Number:	  	                                    

	Account Name:	  	                                    

	Contact Person:	  	                                    

	Phone Number To Verify Wire Info:	  	                                    

	Email address:	  	                                    

 Borrower represents that the conditions precedent to the Advance set forth in the Agreement shall be satisfied
upon the making of such Advance, including but not limited to: (i) that no event that has had or could reasonably be expected to have a Material Adverse Effect has occurred and is continuing; (ii) that the representations and warranties
set forth in the Agreement are and shall be true and correct in all material respects on and as of the Advance Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate
to an earlier date; and (iii) that as of the Advance Date, no fact or condition exists that could (or could, with the passage of time, the giving of 

 
notice, or both) constitute an Event of Default under the Loan Documents. Borrower understands and acknowledges that Agent has the right to review the financial information
supporting this representation and, based upon such review in its sole discretion, Lender may decline to fund the requested Advance. 

Borrower hereby represents that Borrower’s corporate status and chief executive office have not changed since the date of the Agreement
(except as otherwise disclosed to Agent) or, if the Attachment to this Advance Request is completed, are as set forth in the Attachment to this Advance Request. 

Borrower agrees to notify Agent promptly before the funding of the Loan if any of the matters which have been represented above shall not be
true and correct on the Advance Date and if Agent has received no such notice before the Advance Date then the statements set forth above shall be deemed to have been made and shall be deemed to be true and correct as of the Advance Date. 

Executed as of [                    ],
20[    ]. 
  

			
	BORROWER:
	
	 CONSTELLATION
 PHARMACEUTICALS,
INC.

 
			
		
	SIGNATURE:	 	 

 
			
	TITLE:	 	 

 
			
	PRINT NAME:	 	 

 ATTACHMENT TO ADVANCE REQUEST 

Borrower hereby represents and warrants to Agent that Borrower’s current name and organizational status is as follows: 

 

			
	Name:	  	Constellation Pharmaceuticals, Inc.
	Type of organization:	  	Corporation
	State of organization:	  	Delaware
	Organization file number:	  	4488983

 Borrower hereby represents and warrants to Agent that its current chief executive office is as follows: 215 First Street,
Suite 200, Cambridge, MA 02142 

 EXHIBIT B 

SECURED TERM PROMISSORY NOTE 
 [THIS
NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”). PURSUANT TO TREASURY REGULATION SECTION 1.1275-3, FOR INFORMATION REGARDING THE ISSUE PRICE, AMOUNT OF OID, ISSUE DATE, AND YIELD TO
MATURITY, PLEASE CONTACT KAREN H. VALENTINE, CHIEF LEGAL OFFICE & GENERAL COUNSEL, 215 FIRST STREET, SUITE 200 CAMBRIDGE, MA 02142.] 
  

			
	$[        ],000,000	  	Advance Date:                      , 20[    ]
		  	Maturity Date:                      , 20[    ]

 FOR VALUE RECEIVED, Constellation Pharmaceuticals, Inc., a Delaware corporation (“Borrower”) hereby
promises to pay to Hercules Capital, Inc., a Maryland corporation or its registered assigns (the “Lender”) at 400 Hamilton Avenue, Suite 310, Palo Alto, CA 94301 or such other place of payment as the Lender may specify from time to time in
writing, in lawful money of the United States of America, the principal amount of [        ] Million Dollars ($[        ],000,000) or such other principal amount as
Lender has advanced to Borrower, together with interest at a rate as set forth in Section 2.2(c) of the Loan Agreement based upon a year consisting of 360 days, with interest computed daily based on the actual number of days in each month. 

This Secured Term Promissory Note (this “Promissory Note”) is the Note referred to in, and is executed and delivered in connection
with, that certain Loan and Security Agreement dated March 20, 2019, by and among Borrower, Hercules Capital, Inc., a Maryland corporation (the “Agent”) and the several banks and other financial institutions or entities from time to
time party thereto as lender (as the same may from time to time be amended, modified or supplemented in accordance with its terms, the “Loan Agreement”), and is entitled to the benefit and security of the Loan Agreement and the other Loan
Documents (as defined in the Loan Agreement), to which reference is made for a statement of all of the terms and conditions thereof. All payments shall be made in accordance with the Loan Agreement. All terms defined in the Loan Agreement shall have
the same definitions when used herein, unless otherwise defined herein. An Event of Default under the Loan Agreement shall constitute a default under this Promissory Note. 

Borrower waives presentment and demand for payment, notice of dishonor, protest and notice of protest under the UCC or any applicable law.
Borrower agrees to make all payments under this Promissory Note without setoff, recoupment or deduction and regardless of any counterclaim or defense. This Promissory Note has been negotiated and delivered to Lender in the State of New York. This
Promissory Note shall be governed by and construed and enforced in accordance with, the laws of the State of New York, excluding any conflicts of law rules or principles that would cause the application of the laws of any other jurisdiction. 

 BORROWER: 

			
	 CONSTELLATION
 PHARMACEUTICALS,
INC.

 
			
		
	SIGNATURE:	 	 

 
			
	TITLE:	 	 

 
			
	PRINT NAME:	 	 

 EXHIBIT C 

NAME, LOCATIONS, AND OTHER INFORMATION FOR BORROWER 

1. Borrower represents and warrants to Agent that Borrower’s current name and organizational status as of the Closing Date is as follows:

  

			
	Name:	  	Constellation Pharmaceuticals, Inc.
		
	Type of organization:	  	Corporation
		
	State of organization:	  	Delaware
		
	Organization file number:	  	4488983

 2. Borrower represents and warrants to Agent that for five (5) years prior to the Closing Date, Borrower
did not do business under any other name or organization or form except the following: 
 Name: Constellation Pharmaceuticals, Inc. 

Used during dates of: 
 Type of
Organization: 
 State of organization: 

Organization file Number: 

Borrower’s fiscal year ends on December 31 

Borrower’s federal employer tax identification number is:
                     
 3.
Borrower represents and warrants to Agent that its chief executive office is located at                     . 

 EXHIBIT D 

BORROWER’S PATENTS, TRADEMARKS, COPYRIGHTS AND LICENSES 

 EXHIBIT E 

BORROWER’S DEPOSIT ACCOUNTS AND INVESTMENT ACCOUNTS 

 EXHIBIT F 

COMPLIANCE CERTIFICATE 
 Hercules Capital,
Inc. (as “Agent”) 
 400 Hamilton Avenue, Suite 310 

Palo Alto, CA 94301 
 Reference is made to that
certain Loan and Security Agreement dated as of March 20, 2019 and the Loan Documents (as defined therein) entered into in connection with such Loan and Security Agreement all as may be amended from time to time (hereinafter referred to
collectively as the “Loan Agreement”) by and among Hercules Capital, Inc. (the “Agent”), the several banks and other financial institutions or entities from time to time party thereto (collectively, the “Lender”) and
Hercules Capital, Inc., as agent for the Lender (the “Agent”) and Constellation Pharmaceuticals, Inc., a Delaware corporation, as Borrower. All capitalized terms not defined herein shall have the same meaning as defined in the Loan
Agreement. 
 The undersigned is an Officer of the Company, knowledgeable of all Company financial matters, and is authorized to provide
certification of information regarding the Company; hereby certifies, in such capacity and not in his/her individual capacity, that as of the date hereof, that in accordance with the terms and conditions of the Loan Agreement, the Company is in
compliance for the period ending                      of all covenants, conditions and terms in the Loan Agreement (after giving effect to any
materiality qualifiers or grace periods therein) and hereby reaffirms that all representations and warranties set forth in the Loan Agreement are true and correct in all material respects (or if qualified by materiality in all respects) on and as of
the date of this Compliance Certificate with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall
have been true and correct in all material respects (or, if qualified by materiality, in all respects) as of such earlier date. Attached are the required documents supporting the above certification. The undersigned further certifies that these are
prepared in accordance with GAAP (except for the absence of footnotes with respect to unaudited financial statement and subject to normal year-end adjustments) and are consistent from one period to the next
except as explained below. 
  

					
	REPORTING REQUIREMENT	  	REQUIRED	  	CHECK IF ATTACHED
			
	Interim Financial Statements	  	Monthly within 30 days	  	
			
	Interim Financial Statements	  	Quarterly within 45 days	  	
			
	Audited Financial Statements	  	FYE within 90 days	  	

 The undersigned hereby also confirms the below disclosed accounts represent all depository accounts and
securities accounts presently open in the name of Borrower or its Subsidiary/Affiliate, as applicable. 
  

																							
	 	  	 	  	Depository
AC #	 	  	Financial
Institution	 	  	Account Type
(Depository /
Securities)	 	  	Last Month
Ending
Account
Balance	 	  	Purpose of
Account	 
	 BORROWER Name/Address:
	  		
		  	1	  	 	                    	 	  	 	                    	 	  	 	                    	 	  	 	                    	 	  	 	                    	 
	  	2	  				  				  				  				  			
	  	3	  				  				  				  				  			
	  	4	  				  				  				  				  			
	  	5	  				  				  				  				  			
	  	6	  				  				  				  				  			
	  	7	  				  				  				  				  			
	 BORROWER SUBSIDIARY / AFFILIATE COMPANY Name/Address
	  		
		  	1	  				  				  				  				  			
	  	2	  				  				  				  				  			
	  	3	  				  				  				  				  			
	  	4	  				  				  				  				  			
	  	5	  				  				  				  				  			
	  	6	  				  				  				  				  			
	  	7	  				  				  				  				  			

 Were any accounts above opened since the last Compliance Certificate? Yes
         / No          

 Very Truly Yours, 

 

			
	CONSTELLATION PHARMACEUTICALS, INC.

 
			
		
	By:	 	 
	Name:	 	 
	Its:	 	 

 EXHIBIT G 

FORM OF JOINDER AGREEMENT 

This Joinder Agreement (the “Joinder Agreement”) is made and dated as of
[                    ], 20[    ], and is entered into by and between
                    ., a
                     corporation (“Subsidiary”), and HERCULES CAPITAL, INC., a Maryland corporation (as “Agent”). 

RECITALS 
 A.
Subsidiary’s Affiliate, [                    ] (“Company”) [has entered/desires to enter] into that certain Loan and Security
Agreement dated as of March 20, 2019, with the several banks and other financial institutions or entities from time to time party thereto as lender (collectively, the “Lender”) and the Agent, as such agreement may be amended (the
“Loan Agreement”), together with the other agreements executed and delivered in connection therewith; 
 B. Subsidiary
acknowledges and agrees that it will benefit both directly and indirectly from Company’s execution of the Loan Agreement and the other agreements executed and delivered in connection therewith; 

AGREEMENT 
 NOW THEREFORE,
Subsidiary and Agent agree as follows: 
  

	1.	 The recitals set forth above are incorporated into and made part of this Joinder Agreement. Capitalized terms
not defined herein shall have the meaning provided in the Loan Agreement. 

  

	2.	 By signing this Joinder Agreement, Subsidiary shall be bound by the terms and conditions of the Loan Agreement
the same as if it were the Borrower (as defined in the Loan Agreement) under the Loan Agreement, mutatis mutandis, provided however, that (a) with respect to (i) Section 5.1 of the Loan Agreement, Subsidiary represents that it is an
entity duly organized, legally existing and in good standing under the laws of [                    ], (b) neither Agent nor Lender shall have any
duties, responsibilities or obligations to Subsidiary arising under or related to the Loan Agreement or the other Loan Documents, (c) that if Subsidiary is covered by Company’s insurance, Subsidiary shall not be required to maintain
separate insurance or comply with the provisions of Sections 6.1 and 6.2 of the Loan Agreement, and (d) that as long as Company satisfies the requirements of Section 7.1 of the Loan Agreement, Subsidiary shall not have to provide Agent
separate Financial Statements. To the extent that Agent or Lender has any duties, responsibilities or obligations arising under or related to the Loan Agreement or the other Loan Documents, those duties, responsibilities or obligations shall flow
only to Company and not to Subsidiary or any other Person or entity. By way of example (and not an exclusive list): (i) Agent’s providing notice to Company in accordance with the Loan Agreement or as otherwise agreed among Company, Agent and
Lender shall be deemed provided to Subsidiary; (ii) a Lender’s providing an Advance to Company shall be deemed an Advance to Subsidiary; and (iii) Subsidiary shall have no right to request an Advance or make any other demand on
Lender. 

  

	3.	 Presuming the Subsidiary’s equity securities are currently uncertificated, Subsidiary agrees not to
certificate its equity securities without Agent’s prior written consent, which consent may be conditioned on the delivery of such equity securities to Agent in order to perfect Agent’s security interest in such equity securities.

  

	4.	 Subsidiary acknowledges that it benefits, both directly and indirectly, from the Loan Agreement, and hereby
waives, for itself and on behalf on any and all successors in interest (including without limitation any assignee for the benefit of creditors, receiver, bankruptcy trustee or itself as
debtor-in-possession 

	 	
under any bankruptcy proceeding) to the fullest extent provided by law, any and all claims, rights or defenses to the enforcement of this Joinder Agreement on the basis that (a) it failed to
receive adequate consideration for the execution and delivery of this Joinder Agreement or (b) its obligations under this Joinder Agreement are avoidable as a fraudulent conveyance. 

 

	5.	 As security for the prompt, complete and indefeasible payment when due (whether on the payment dates or
otherwise) of all the Secured Obligations, Subsidiary grants to Agent a security interest in all of Subsidiary’s right, title, and interest in and to the Collateral. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 [SIGNATURE PAGE TO JOINDER AGREEMENT] 

SUBSIDIARY: 

                       
                 . 
 By: 

Name: 
 Title: 

Address: 
 Telephone:
                     
 email:
                     
 AGENT:

 HERCULES CAPITAL, INC. 

By:
                                        

 Name:
                                        

 Title:
                                        

 Address: 
 400 Hamilton
Ave., Suite 310 
 Palo Alto, CA 94301 

email: legal@herculestech.com 

Telephone: 650-289-3060 

 EXHIBIT H 

[Reserved] 

 EXHIBIT I 

ACH DEBIT AUTHORIZATION AGREEMENT 

Hercules Capital, Inc. 
 400 Hamilton Avenue, Suite 310 

Palo Alto, CA 94301 
 Re: Loan and Security
Agreement dated as of March 20, 2019 (the “Agreement”) by and among Constellation Pharmaceuticals, Inc., a Delaware corporation (the “Borrower”) and Hercules Capital, Inc., as agent (“Company”) and the lenders
party thereto (collectively, the “Lender”) 
 In connection with the above referenced Agreement, the Borrower hereby authorizes the Company to
initiate debit entries for (i) the periodic payments due under the Agreement and (ii) reasonable and documented out-of-pocket legal fees and costs incurred by
Agent or Lender pursuant to Section 11.11 of the Agreement to the Borrower’s account indicated below. The Borrower authorizes the depository institution named below to debit to such account. 

[IF FILED PUBLICLY, ACCOUNT INFO REDACTED FOR SECURITY PURPOSES] 
  

			
	DEPOSITORY NAME	  	BRANCH
		
	CITY	  	STATE AND ZIP CODE
		
	TRANSIT/ABA NUMBER	  	ACCOUNT NUMBER

 This authority will remain in full force and effect so long as any amounts are due under the Agreement. 

 

			
	CONSTELLATION PHARMACEUTICALS, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 EXHIBIT J 

[Reserved] 

 EXHIBIT K-1 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE 

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to Loan and Security Agreement dated as of March 20, 2019 (as amended, supplemented or otherwise modified from
time to time, the “Loan Agreement”) by and among Constellation Pharmaceuticals, Inc., a Delaware corporation (hereinafter referred to as the “Borrower”), the several banks and other financial institutions or entities from time to
time parties to the Loan Agreement (collectively, referred to as “Lender”), and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and collateral agent for itself and the Lender (in such capacity, the
“Agent”). 
 Pursuant to the provisions of Section 2.9 of the Loan Agreement, the undersigned hereby certifies that
(i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a “bank” within the meaning of
Section 881(c)(3)(A) of the Code, (iii) it is not a “ten percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a “controlled foreign corporation”
related to the Borrower as described in Section 881(c)(3)(C) of the Code. 
 The undersigned has furnished the Agent and the Borrower
with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E.
By executing this certificate, the undersigned agrees that (1) if the information provided in this certificate changes, the undersigned shall promptly so inform the Borrower and the Agent, and (2) the undersigned shall have at all times
furnished the Borrower and the Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 Unless otherwise defined herein, terms defined in the Loan Agreement and used herein shall have the meanings given to them in the Loan
Agreement. 
  

							
	Date:                      , 20    	 		 		 	[NAME OF LENDER]
				
		 		 	By:	 	 
		 		 	Name:	 	 
		 		 	Title:	 	 

 EXHIBIT K-2 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE 

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to Loan and Security Agreement dated as of March 20, 2019 (as amended, supplemented or otherwise modified from
time to time, the “Loan Agreement”) by and among Constellation Pharmaceuticals, Inc., a Delaware corporation (hereinafter referred to as the “Borrower”), the several banks and other financial institutions or entities from time to
time parties to the Loan Agreement (collectively, referred to as “Lender”), and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and collateral agent for itself and the Lender (in such capacity, the
“Agent”). 
 Pursuant to the provisions of Section 2.9 of the Loan Agreement, the undersigned hereby certifies that
(i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a
“ten percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of
the Code. 
 The undersigned has furnished its participating Lender with a certificate of its
non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this
certificate, the undersigned agrees that (1) if the information provided in this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender
with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 

Unless otherwise defined herein, terms defined in the Loan Agreement and used herein shall have the meanings given to them in the Loan
Agreement. 
  

							
	Date:                      , 20    	 		 	[NAME OF PARTICIPANT]
				
		 		 	By:	 	 
		 		 	Name:	 	 
		 		 	Title:	 	 

 EXHIBIT K-3 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE 

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to Loan and Security Agreement dated as of March 20, 2019 (as amended, supplemented or otherwise modified from
time to time, the “Loan Agreement”) by and among Constellation Pharmaceuticals, Inc., a Delaware corporation (hereinafter referred to as the “Borrower”), the several banks and other financial institutions or entities from time to
time parties to the Loan Agreement (collectively, referred to as “Lender”), and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and collateral agent for itself and the Lender (in such capacity, the
“Agent”). 
 Pursuant to the provisions of Section 2.9 of the Loan Agreement, the undersigned hereby certifies that
(i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such
participation, neither the undersigned nor any of its direct or indirect partners/members is a “bank” extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of
Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a “ten percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or
indirect partners/members is a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code. 

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the
following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form
W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned
agrees that (1) if the information provided in this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently
effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 

Unless otherwise defined herein, terms defined in the Loan Agreement and used herein shall have the meanings given to them in the Loan
Agreement. 
  

							
	Date:                      , 20    	 		 	[NAME OF PARTICIPANT]
				
		 		 	By:	 	 
		 		 	Name:	 	 
		 		 	Title:	 	 

 EXHIBIT K-4 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE 

(For Foreign lenders That Are Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to Loan and Security Agreement dated as of March 20, 2019 (as amended, supplemented or otherwise modified from
time to time, the “Loan Agreement”) by and among Constellation Pharmaceuticals, Inc., a Delaware corporation (hereinafter referred to as the “Borrower”), the several banks and other financial institutions or entities from time to
time parties to the Loan Agreement (collectively, referred to as “Lender”), and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and collateral agent for itself and the Lender (in such capacity, the
“Agent”). 
 Pursuant to the provisions of Section 2.9 of the Loan Agreement, the undersigned hereby certifies that
(i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such
Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Loan Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a
“bank” extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a
“ten percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a “controlled foreign corporation” related to the Borrower as
described in Section 881(c)(3)(C) of the Code. 
 The undersigned has furnished the Agent and the Borrower with IRS Form W- 8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned
agrees that (1) if the information provided in this certificate changes, the undersigned shall promptly so inform the Borrower and the Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Agent with a
properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 

Unless otherwise defined herein, terms defined in the Loan Agreement and used herein shall have the meanings given to them in the Loan
Agreement. 
  

							
	Date:                      , 20    	 		 	[NAME OF LENDER]
				
		 		 	By:	 	 
		 		 	Name:	 	 
		 		 	Title:	 	 

 SCHEDULE 1.1 

COMMITMENTS 
  

					
	 LENDER
	  	 TRANCHE
	  	 TERM COMMITMENT

	Hercules Capital, Inc.	  	Tranche 1	  	$20,000,000
	Hercules Capital, Inc.	  	Tranche 2	  	$10,000,000
	Hercules Capital, Inc.	  	Tranche 3	  	$5,000,000
	Hercules Capital, Inc.	  	Tranche 4*	  	$5,000,000*
	TOTAL COMMITMENTS	  		  	$40,000,000*

  

	*	 Funding of Tranche 4 is subject to approval by Lender’s investment committee in its sole discretion.

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