Document:

exv10w2

Exhibit 10.2

First Amendment to Separation Agreement and Release

This amendment effective as of                      modifies the separation agreement and release dated
February 8, 2008 (the “Agreement”) between Vocus, Inc. (“Vocus”) and Robert Lentz (“Employee”).

	1.	 	Capitalized terms not defined herein shall have the meaning given to them in the Agreement.
	 
	2.	 	Section II (B) is hereby deleted in its entirety and replaced with the following:

“(B) Stock Options. Notwithstanding any provision set forth in any plan documents
or agreements, any stock options and any other equity awards (including but not limited too
any restricted stock) granted by Vocus to Employee as of the Resignation Date shall
continue to vest for twelve (12) months following the Resignation Date, in accordance with
the terms and conditions (other than the vesting terms) of the applicable plan documents
associated with any such stock options and any other equity awards (including but not
limited too any restricted stock award), provided that such continued vesting shall only
occur if Employee continues acting as a strategic consultant and as a member of Vocus’
Board of Directors as set forth in Section III below.”

	3.	 	Section V(g) beginning “for any claims...” is hereby deleted in its entirety and replaced with
the following:

“for any claims relating to any stock options or any other equity awards granted to
Employee by Vocus; and”

	4.	 	This amendment, together with the Agreement, represents the entire agreement between the
parties, and supersedes all other prior or contemporaneous communications between the parties
(whether written or oral) relating to the subject matter of this Agreement. In the event of
any inconsistency between the terms of this amendment and the Agreement, the terms of this
amendment shall control.

Agreed and accepted:

	 	 	 	 	 	 	 
	Vocus, Inc.	 	Robert Lentz
	 
	 	 	 	 	 	 
	By:	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	 	 	Date:exv10w53

Exhibit 10.53

AMENDMENT 10

This Amendment 10 (“Amendment”) effective as of this 1st day of January, 2007
(“Effective Date”) between Double-Take Software, Inc. (formerly known as NSI Software,
Inc.), 257 Turnpike Road, Suite 210, Southborough, MA 01772 (“NSI”) and Sunbelt Software
Distribution, Inc., 101 North Garden Avenue, Clearwater, FL 33755 (“VAR”) amends the
Xcelerate Partner Agreement (the “Agreement”), between the parties dated August 2, 2001.

WHEREAS, NSI and VAR wish to modify certain provisions pertaining to Aggregate Dollar Value;

NOW THEREFORE in consideration of the mutual covenants contained herein, the Parties agree to
amend the Agreement as follows:

1. VAR hereby agrees and understands that NSI has changed its company name on July 25, 2006 to
Double-Take Software, Inc. VAR and NSI agree to delete all references to NSI Software, Inc.
and replace same with Double-Take Software, Inc.

2. The Aggregate Dollar Commitment shall be changed as follows:

The annual Aggregate Dollar Value committed is $8,500,000.00 which shall be distributed over
the four contract quarters as indicated below:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	QI 2007	 	Q2 2007	 	Q3 2007	 	Q4 2007	 
	$1,900,000,00
	 	$	2,200,000.00	 	 	$	2,100,000.00	 	 	$	2,300,000,00	 

3. Schedule B (3) of the Agreement shall be deleted and replaced with the following table:

	 	 	 	 	 	 	 
	 	 	 	 	Then Current Partner
	 	 	 	 	Price Discount for the
	Discount Class	 	Products	 	Territory
	SKU Class A

	 	Class A products and
maintenance
as listed in the Partner
Price List Training products
for use internally
	 	 	30	%
	SKU Class B

	 	Class B products and
maintenance as listed in
Partner Price List
	 	 	20	%
	SKU Class C

	 	Professional Services
	 	 	15	%
	SKU Class D

	 	Training products for re-sale
	 	 	10	%
	SKU Class E

	 	 	 	No Discount

	SKD Class F

	 	Class F products and
maintenance as listed in the
Partner Price List
	 	TBD1

 

			
	1	 	SKU Class F Discount is for third party products that are being licensed/sublicensed by
Company to Partner. Partner Discount may vary for products in SKU Class F. Class F purchases
can not be applied to Aggregate dollar Value, rebate, or Opportunity Registration. VAR shall
contact its Company Channel Partner Manager for the discount associated with any purchase
under this Discount Class.

The discount for Training scheduled for internal use shall be at 30% off the then current
partner price discount for
the Territory.

4. The following shall be attached as Schedule F to the Agreement:

The Double-Take Software, Inc. Graphic Style Guide is located at
http://xcelerate.doubletake.com/ select Sales Tools then select Graphic Style
Guide.

					
	 	 	 	 	 
	Confidential
	 	Page 1
	 	02/02/2007

 

Please note that a username and password are required to access this site.

A listing
of Double-Take Software, Inc. trademarks is located at http://www.doubletake.com/legal.aspx.

Except as modified under this Amendment 10, all other terms and conditions of the Agreement shall
remain in full force and effect. In the event of a conflict between the terms and the conditions
of this Amendment and the Agreement, the terms and conditions of this Amendment shall supersede.

IN WITNESS THEREOF, the parties hereto have caused this Amendment to be executed by their duly
authorized representatives.

	 	 	 	 	 	 	 	 	 	 	 
	Double-Take Software Inc.	 	 	 	Sunbelt Software
Distribution, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	/s/ S. Craig Huke
	 	 	 	Signature:
	 	/s/ J. Murciano	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Print Name:

	 	S. Craig Huke
	 	 	 	Print Name:
	 	J. Murciano	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	C.F.O
	 	 	 	Title:
	 	C.E.O	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	02/02/07
	 	 	 	Date:
	 	FEB
2nd, 2007	 	 

Page 2exv10w54

Exhibit
10.54

Amendment 11

This
Amendment 11(“Amendment”) effective as
of this
1st day of January, 2008
(“Effective Date”) between Double-take Software Inc.
(Formerly known as NSI Software Inc.) 257 Turnpike
Road. Suite 210 Southborough MA 01772 (“Double-Take”) and Sunbelt Software Distribution Inc. 101
North Garden Avenue Clearwater FL 33755 (“VAR”) amends the Xcelerate Partner Agreement (the
“Agreement”) between the parties dated August 2, 2001.

WHERE
AS Double-Take and VAR wish to modify certain provisions
pertaining to Aggregate Dollar Value.

NOW
THEREFORE in consideration of the mutual covenants contained herein the Parties agrees to
amend the Agreement as follows.

	 	1	 	The Aggregate Dollar Commitment shall be changed as follows

	 	 	 	The Annual Aggregate Dollar Value committed is $10,500,000,00 which shall be distributed over the
four contract quarters as indicated bellow

	 	 	 	 	 	 	 
	Q1 2008	 	Q2 2008	 	Q3 2008	 	Q4 2008
	$2,400,000,00
	 	$2,700,000,00
	 	$2,600,000,00
	 	$2,800,000,00

Except
as modified under this Amendment 11, all other terms and conditions of the Agreement
shall remain in full force and effect. In the event of the conflict between the terms and
conditions of this Amendment and the Agreement, the terms and conditions of this Amendment shall
supersede.

IN
WITNESS THEREOF, the parties hereto have caused this Amendment to be executed by their duly
authorized representatives.

	 	 	 	 	 	 	 	 	 	 	 
	Double-Take Software Inc.	 	 	 	Sunbelt Software Distribution Inc.(“VAR”)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	/s/ S. Craig Huke
	 	 	 	Signature:
	 	/s/ Alex Eckelberry	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Print Name:

	 	S. Craig Huke
	 	 	 	Print Name:
	 	Alex Eckelberry	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	C.F.O
	 	 	 	Title:
	 	C.E.O	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	01/28/08
	 	 	 	Date:
	 	1/21/08	 	 

Page 1exv10w1

Exhibit 10.1

Prepared by, and after recording

return to:

David J. McPherson, Esquire

Troutman Sanders LLP

P.O. Box 1122

Richmond, Virginia 23218-1122

MULTIFAMILY MORTGAGE,

ASSIGNMENT OF RENTS

AND SECURITY AGREEMENT

(INDIANA)

							
	 	 	 	 	 	 	 
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT -

INDIANA
	 	 	 	Form 4015
	 	11/01

©
1997-2001 Fannie Mae

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	1. DEFINITIONS 
	 	 	1	 
	 
	2. UNIFORM COMMERCIAL CODE SECURITY AGREEMENT 
	 	 	5	 
	 
	3. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN
POSSESSION
	 	 	6	 
	 
	4. ASSIGNMENT OF LEASES; LEASES AFFECTING THE MORTGAGED PROPERTY
	 	 	8	 
	 
	5. PAYMENT OF INDEBTEDNESS; PERFORMANCE UNDER LOAN DOCUMENTS;
PREPAYMENT PREMIUM
	 	 	9	 
	 
	6. EXCULPATION 
	 	 	9	 
	 
	7. DEPOSITS FOR TAXES, INSURANCE AND OTHER CHARGES 
	 	 	9	 
	 
	8. COLLATERAL AGREEMENTS 
	 	 	10	 
	 
	9. APPLICATION OF PAYMENTS 
	 	 	10	 
	 
	10. COMPLIANCE WITH LAWS 
	 	 	11	 
	 
	11. USE OF PROPERTY 
	 	 	11	 
	 
	12. PROTECTION OF LENDER’S SECURITY 
	 	 	11	 
	 
	13. INSPECTION 
	 	 	12	 
	 
	14. BOOKS AND RECORDS; FINANCIAL REPORTING 
	 	 	12	 
	 
	15. TAXES; OPERATING EXPENSES 
	 	 	13	 
	 
	16. LIENS; ENCUMBRANCES 
	 	 	14	 
	 
	17. PRESERVATION, MANAGEMENT AND MAINTENANCE OF MORTGAGED
PROPERTY
	 	 	14	 
	 
	18. ENVIRONMENTAL HAZARDS
	 	 	15	 
	 
	19. PROPERTY AND LIABILITY INSURANCE
	 	 	19	 
	 
	20. CONDEMNATION
	 	 	20	 
	 
	21. TRANSFERS OF THE MORTGAGED PROPERTY OR INTERESTS IN
BORROWER
	 	 	21	 
	 
	22. EVENTS OF DEFAULT 
	 	 	24	 

							
	 	 	 	 	 	 	 
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT -

INDIANA
	 	Form 4015
	 	11/01
	 	Page i

 ©
1997-2001 Fannie Mae

 

 

	 	 	 	 	 
	 	 	PAGE	 
	23. REMEDIES CUMULATIVE 
	 	 	25	 
	 
	24. FORBEARANCE 
	 	 	25	 
	 
	25. LOAN CHARGES 
	 	 	25	 
	 
	26. WAIVER OF STATUTE OF LIMITATIONS
	 	 	26	 
	 
	27. WAIVER OF MARSHALLING 
	 	 	26	 
	 
	28. FURTHER ASSURANCES 
	 	 	26	 
	 
	29. ESTOPPEL CERTIFICATE 
	 	 	26	 
	 
	30. GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE 
	 	 	26	 
	 
	31. NOTICE 
	 	 	27	 
	 
	32. SALE OF NOTE; CHANGE IN SERVICER 
	 	 	27	 
	 
	33. SINGLE ASSET BORROWER 
	 	 	27	 
	 
	34. SUCCESSORS AND ASSIGNS BOUND 
	 	 	27	 
	 
	35. JOINT AND SEVERAL LIABILITY 
	 	 	27	 
	 
	36. RELATIONSHIP OF PARTIES; NO THIRD PARTY BENEFICIARY
	 	 	27	 
	 
	37. SEVERABILITY; AMENDMENTS 
	 	 	28	 
	 
	38. CONSTRUCTION 
	 	 	28	 
	 
	39. LOAN SERVICING 
	 	 	28	 
	 
	40. DISCLOSURE OF INFORMATION 
	 	 	28	 
	 
	41. NO CHANGE IN FACTS OR CIRCUMSTANCES 
	 	 	28	 
	 
	42. SUBROGATION 
	 	 	28	 
	 
	43. ACCELERATION; REMEDIES 
	 	 	29	 
	 
	44. PREPARATION AND FILING OF FINANCING STATEMENTS 
	 	 	29	 
	 
	45. RELEASE 
	 	 	29	 
	 
	46. WAIVER OF VALUATION AND APPRAISEMENT 
	 	 	29	 
	 
	47. WAIVER OF TRIAL BY JURY 
	 	 	29	 

							
	 	 	 	 	 	 	 
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT -

INDIANA
	 	Form 4015
	 	11/01
	 	Page ii

 

 

Sunrise of Fall Creek

MULTIFAMILY MORTGAGE,

ASSIGNMENT OF RENTS

AND SECURITY AGREEMENT

     THIS MULTIFAMILY MORTGAGE, ASSIGNMENT OF RENTS AND SECURITY AGREEMENT (the “Instrument”) is
dated as of the 7th day of May, 2008, between SUNRISE FALL CREEK ASSISTED LIVING,
L.L.C., a limited liability company organized and existing under the laws of Indiana, whose address
is c/o Sunrise Senior Living Investments, Inc., 7902 Westpark Drive, McLean, Virginia 22102, as
mortgagor (“Borrower”), and CAPMARK BANK, an industrial bank organized and existing under the laws
of Utah, whose address is 6955 Union Park Center, Suite 330, Midvale, Utah 84047, Attn: President,
with a copy to Capmark Finance Inc., 116 Welsh Road, Horsham, Pennsylvania 19044, Attn: Servicing
– Executive Vice President, as mortgagee (“Lender”).

     Borrower is indebted to Lender in the principal amount of $10,558,000.00, as evidenced by
Borrower’s Multifamily Note payable to Lender dated as of the date of this Instrument, and maturing
on June 1, 2013.

     TO SECURE TO LENDER the repayment of the Indebtedness, and all renewals, extensions and
modifications of the Indebtedness, and the performance of the covenants and agreements of Borrower
contained in the Loan Documents, Borrower mortgages, warrants, grants, conveys and assigns to
Lender the Mortgaged Property, including the Land located in the County of Marion, State of Indiana
and described in Exhibit A attached to this Instrument.

     Borrower represents and warrants that Borrower is lawfully seized of the Mortgaged Property
and has the right, power and authority to mortgage, grant, convey and assign the Mortgaged
Property, and that the Mortgaged Property is unencumbered. Borrower covenants that Borrower will
warrant and defend generally the title to the Mortgaged Property against all claims and demands,
subject to any easements and restrictions listed in a schedule of exceptions to coverage in any
title insurance policy issued to Lender contemporaneously with the execution and recordation of
this Instrument and insuring Lender’s interest in the Mortgaged Property.

     Covenants. Borrower and Lender covenant and agree as follows:

     1. DEFINITIONS. The following terms, when used in this Instrument (including when used in the
above recitals), shall have the following meanings:

     (a) “Borrower” means all persons or entities identified as “Borrower” in the first paragraph
of this Instrument, together with their successors and assigns.

     (b) “Collateral Agreement” means any separate agreement between Borrower and Lender for the
purpose of establishing replacement reserves for the Mortgaged Property, establishing a fund to
assure completion of repairs or improvements specified in that agreement, or assuring reduction of
the outstanding principal balance of the Indebtedness if the occupancy of or income from the
Mortgaged Property does not increase to a level specified in that agreement, or any other agreement
or agreements between Borrower and Lender which provide for the establishment of any other fund,
reserve or account.

							
	 	 	 	 	 	 	 
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT -

INDIANA
	 	Form 4015
	 	11/01
	 	Page 1

Ó 1997-2001 Fannie Mae

 

 

     (c) “Environmental Permit” means any permit, license, or other authorization issued under any
Hazardous Materials Law with respect to any activities or businesses conducted on or in relation to
the Mortgaged Property.

     (d) “Event of Default” means the occurrence of any event listed in Section 22.

     (e) “Fixtures” means all property which is so attached to the Land or the Improvements as to
constitute a fixture under applicable law, including: machinery, equipment, engines, boilers,
incinerators, installed building materials; systems and equipment for the purpose of supplying or
distributing heating, cooling, electricity, gas, water, air, or light; antennas, cable, wiring and
conduits used in connection with radio, television, security, fire prevention, or fire detection or
otherwise used to carry electronic signals; telephone systems and equipment; elevators and related
machinery and equipment; fire detection, prevention and extinguishing systems and apparatus;
security and access control systems and apparatus; plumbing systems; water heaters, ranges, stoves,
microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers and other
appliances; light fixtures, awnings, storm windows and storm doors; pictures, screens, blinds,
shades, curtains and curtain rods; mirrors; cabinets, paneling, rugs and floor and wall coverings;
fences, trees and plants; swimming pools; and exercise equipment.

     (f) “Governmental Authority” means any board, commission, department or body of any municipal,
county, state or federal governmental unit, or any subdivision of any of them, that has or acquires
jurisdiction over the Mortgaged Property or the use, operation or improvement of the Mortgaged
Property.

     (g) “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 the Mortgaged Property is prohibited by any federal, state or local
authority; any substance that requires special handling; and any other material or substance now or
in the future defined as a “hazardous substance,” “hazardous material,” “hazardous waste,” “toxic
substance,” “toxic pollutant,” “contaminant,” or “pollutant” within the meaning of any Hazardous
Materials Law.

     (h) “Hazardous Materials Laws” means all federal, state, and local laws, ordinances and
regulations and standards, rules, policies and other governmental requirements, administrative
rulings and court judgments and decrees in effect now or in the future and including all
amendments, that relate to Hazardous Materials and apply to Borrower or to the Mortgaged Property.
Hazardous Materials Laws include, but are not limited to, the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. Section 9601, et seq., the Resource Conservation and
Recovery Act, 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.

     (i) “Impositions” and “Imposition Deposits” are defined in Section 7(a).

     (j) “Improvements” means the buildings, structures, improvements, and alterations now
constructed or at any time in the future constructed or placed upon the Land, including any future
replacements and additions.

							
	 	 	 	 	 	 	 
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT -

INDIANA
	 	Form 4015
	 	11/01
	 	Page 2

Ó 1997-2001 Fannie Mae

 

 

     (k) “Indebtedness” means the principal of, interest on, and all other amounts due at any time
under, the Note, this Instrument or any other Loan Document, including prepayment premiums, late
charges, default interest, and advances as provided in Section 12 to protect the security of this
Instrument.

     (l) [Intentionally omitted]

     (m) “Key Principal” means the natural person(s) or entity identified as such at the foot of
this Instrument, and any person or entity who becomes a Key Principal after the date of this
Instrument and is identified as such in an amendment or supplement to this Instrument.

     (n) “Land” means the land described in Exhibit A.

     (o) “Leases” means all present and future leases, subleases, licenses, concessions or grants
or other possessory interests now or hereafter in force, whether oral or written, covering or
affecting the Mortgaged Property, or any portion of the Mortgaged Property (including proprietary
leases or occupancy agreements if Borrower is a cooperative housing corporation), and all
modifications, extensions or renewals.

     (p) “Lender” means the entity identified as “Lender” in the first paragraph of this Instrument
and its successors and assigns, or any subsequent holder of the Note.

     (q) “Loan Documents” means the Note, this Instrument, all guaranties, all indemnity
agreements, all Collateral Agreements, O&M Programs, and any other documents now or in the future
executed by Borrower, Key Principal, any guarantor or any other person in connection with the loan
evidenced by the Note, as such documents may be amended from time to time.

     (r) “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, this Instrument and any other Loan
Document, and otherwise to service the loan evidenced by the Note for the benefit of Lender.
Unless Borrower receives notice to the contrary, the Loan Servicer is the entity identified as
“Lender” in the first paragraph of this Instrument.

     (s) “Mortgaged Property” means all of Borrower’s present and future right, title and interest
in and to all of the following:

	 	(1)	 	the Land;
	 
	 	(2)	 	the Improvements;
	 
	 	(3)	 	the Fixtures;
	 
	 	(4)	 	the Personalty;
	 
	 	(5)	 	all current and future rights, including air rights,
development rights, zoning rights and other similar rights or interests,
easements, tenements, rights-of-way, strips and gores of land, streets, alleys,
roads, sewer rights, waters, watercourses, and appurtenances related to or
benefitting the Land or the Improvements, or both, and all rights-of-way,
streets, alleys and roads which may have been or may in the future be vacated;
	 
	 	(6)	 	all proceeds paid or to be paid by any insurer of the Land, the
Improvements, the Fixtures, the Personalty or any other part of the

							
	 	 	 	 	 	 	 
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT -

INDIANA
	 	Form 4015
	 	11/01
	 	Page 3

Ó 1997-2001 Fannie Mae

 

 

	 	 	 	Mortgaged Property, whether or not Borrower obtained the insurance pursuant
to Lender’s requirement;
	 
	 	(7)	 	all awards, payments and other compensation made or to be made
by any municipal, state or federal authority with respect to the Land, the
Improvements, the Fixtures, the Personalty or any other part of the Mortgaged
Property, including any awards or settlements resulting from condemnation
proceedings or the total or partial taking of the Land, the Improvements, the
Fixtures, the Personalty or any other part of the Mortgaged Property under the
power of eminent domain or otherwise and including any conveyance in lieu
thereof;
	 
	 	(8)	 	all contracts, options and other agreements for the sale of the
Land, the Improvements, the Fixtures, the Personalty or any other part of the
Mortgaged Property entered into by Borrower now or in the future, including
cash or securities deposited to secure performance by parties of their
obligations;
	 
	 	(9)	 	all proceeds from the conversion, voluntary or involuntary, of
any of the above into cash or liquidated claims, and the right to collect such
proceeds;
	 
	 	(10)	 	all Rents and Leases;
	 
	 	(11)	 	all earnings, royalties, accounts receivable, issues and
profits from the Land, the Improvements or any other part of the Mortgaged
Property, and all undisbursed proceeds of the loan secured by this Instrument
and, if Borrower is a cooperative housing corporation, maintenance charges or
assessments payable by shareholders or residents;
	 
	 	(12)	 	all Imposition Deposits;
	 
	 	(13)	 	all refunds or rebates of Impositions by any municipal, state
or federal authority or insurance company (other than refunds applicable to
periods before the real property tax year in which this Instrument is dated);
	 
	 	(14)	 	all tenant security deposits which have not been forfeited by
any tenant under any Lease; and
	 
	 	(15)	 	all names under or by which any of the above Mortgaged Property
may be operated or known, and all trademarks, trade names, and goodwill
relating to any of the Mortgaged Property.

     (t) “Note” means the Multifamily Note described on page 1 of this Instrument, including the
Acknowledgment and Agreement of Key Principal to Personal Liability for Exceptions to Non-Recourse
Liability (if any), and all schedules, riders, allonges and addenda, as such Multifamily Note may
be amended from time to time.

     (u) “O&M Program” is defined in Section 18(a).

     (v) “Personalty” means all equipment, inventory, general intangibles which are used now or in
the future in connection with the ownership, management or operation of the Land or the
Improvements or are located on the Land or in the Improvements, including furniture,

							
	 	 	 	 	 	 	 
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT -

INDIANA
	 	Form 4015
	 	11/01
	 	Page 4

Ó 1997-2001 Fannie Mae

 

 

furnishings, machinery, building materials, appliances, goods, supplies, tools, books, records
(whether in written or electronic form), computer equipment (hardware and software) and other
tangible personal property (other than Fixtures) which are used now or in the future in connection
with the ownership, management or operation of the Land or the Improvements or are located on the
Land or in the Improvements, and any operating agreements relating to the Land or the Improvements,
and any surveys, plans and specifications and contracts for architectural, engineering and
construction services relating to the Land or the Improvements and all other intangible property
and rights relating to the operation of, or used in connection with, the Land or the Improvements,
including all governmental permits relating to any activities on the Land.

     (w) “Property Jurisdiction” is defined in Section 30(a).

     (x) “Rents” means all rents (whether from residential or non-residential space), revenues and
other income of the Land or the Improvements, including subsidy payments received from any sources
(including, but not limited to payments under any Housing Assistance Payments Contract) parking
fees, laundry and vending machine income and fees and charges for food, health care and other
services provided at the Mortgaged Property, whether now due, past due, or to become due, and
deposits forfeited by tenants.

     (y) “Taxes” means all taxes, assessments, vault rentals and other charges, if any, 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.

     (z) “Transfer” means (A) a sale, assignment, transfer or other disposition (whether voluntary,
involuntary or by operation of law); (B) the granting, creating or attachment of a lien,
encumbrance or security interest (whether voluntary, involuntary or by operation of law); (C) 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; (D) the withdrawal,
retirement, removal or involuntary resignation of a partner in a partnership or a member or manager
in a limited liability company; or (E) the merger, dissolution, liquidation, or consolidation of a
legal entity. “Transfer” does not include (i) a conveyance of the Mortgaged Property at a judicial
or non-judicial foreclosure sale under this Instrument or (ii) the Mortgaged Property becoming part
of a bankruptcy estate by operation of law under the United States Bankruptcy Code. For purposes
of defining the term “Transfer,” the term “partnership” shall mean a general partnership, a limited
partnership, a joint venture and a limited liability partnership, and the term “partner” shall mean
a general partner, a limited partner and a joint venturer.

     2. UNIFORM COMMERCIAL CODE SECURITY AGREEMENT. This Instrument is also a security agreement
under the Uniform Commercial Code for any of the Mortgaged Property which, under applicable law,
may be subject to a security interest under the Uniform Commercial Code, whether acquired now or in
the future, and all products and cash and non-cash proceeds thereof (collectively, “UCC
Collateral”), and Borrower hereby grants to Lender a security interest in the UCC Collateral.
Borrower hereby authorizes Lender to file financing statements, continuation statements and
financing statement amendments, in such form as Lender may require to perfect or continue the
perfection of this security interest and Borrower agrees, if Lender so requests, to execute and
deliver to Lender such financing statements, continuation statements and amendments. Borrower
shall pay all filing costs and all costs and expenses of any record searches for financing
statements that Lender may require. Without the prior written consent of Lender, Borrower shall
not create or permit to exist any other lien or security interest in any of the UCC Collateral. If
an Event of Default has occurred and is

							
	 	 	 	 	 	 	 
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continuing, Lender shall have the remedies of a secured party under the Uniform Commercial
Code, in addition to all remedies provided by this Instrument or existing under applicable law. In
exercising any remedies, Lender may exercise its remedies against the UCC Collateral separately or
together, and in any order, without in any way affecting the availability of Lender’s other
remedies. This Instrument constitutes a financing statement with respect to any part of the
Mortgaged Property which is or may become a Fixture.

     3. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION.

     (a) As part of the consideration for the Indebtedness, Borrower absolutely and unconditionally
assigns and transfers to Lender all Rents. It is the intention of Borrower to establish a present,
absolute and irrevocable transfer and assignment to Lender of all Rents and to authorize and
empower Lender to collect and receive all Rents without the necessity of further action on the part
of Borrower. Promptly upon request by Lender, Borrower agrees to execute and deliver such further
assignments as Lender may from time to time require. Borrower and Lender intend this assignment of
Rents to be immediately effective and to constitute an absolute present assignment and not an
assignment for additional security only. For purposes of giving effect to this absolute assignment
of Rents, and for no other purpose, Rents shall not be deemed to be a part of the “Mortgaged
Property,” as that term is defined in Section 1(s). However, if this present, absolute and
unconditional assignment of Rents is not enforceable by its terms under the laws of the Property
Jurisdiction, then the Rents shall be included as a part of the Mortgaged Property and it is the
intention of the Borrower that in this circumstance this Instrument create and perfect a lien on
Rents in favor of Lender, which lien shall be effective as of the date of this Instrument.

     (b) After the occurrence of an Event of Default, Borrower authorizes Lender to collect, sue
for and compromise Rents and directs each tenant of the Mortgaged Property to pay all Rents to, or
as directed by, Lender, and Borrower shall, upon Borrower’s receipt of any Rents from any sources
(including, but not limited to subsidy payments under any Housing Assistance Payments Contract),
pay the total amount of such receipts to the Lender. However, until the occurrence of an Event of
Default, Lender hereby grants to Borrower a revocable license to collect and receive all Rents, to
hold all Rents in trust for the benefit of Lender and to apply all Rents to pay the installments of
interest and principal then due and payable under the Note and the other amounts then due and
payable under the other Loan Documents, including Imposition Deposits, and to pay the current costs
and expenses of managing, operating and maintaining the Mortgaged Property, including utilities,
Taxes and insurance premiums (to the extent not included in Imposition Deposits), tenant
improvements and other capital expenditures. So long as no Event of Default has occurred and is
continuing, the Rents remaining after application pursuant to the preceding sentence may be
retained by Borrower free and clear of, and released from, Lender’s rights with respect to Rents
under this Instrument. From and after the occurrence of an Event of Default, and without the
necessity of Lender entering upon and taking and maintaining control of the Mortgaged Property
directly, or by a receiver, Borrower’s license to collect Rents shall automatically terminate and
Lender shall without notice be entitled to all Rents as they become due and payable, including
Rents then due and unpaid. Borrower shall pay to Lender upon demand all Rents to which Lender is
entitled. At any time on or after the date of Lender’s demand for Rents, Lender may give, and
Borrower hereby irrevocably authorizes Lender to give, notice to all tenants of the Mortgaged
Property instructing them to pay all Rents to Lender, no tenant shall be obligated to inquire
further as to the occurrence or continuance of an Event of Default, and no tenant shall be
obligated to pay to Borrower any amounts which are actually paid to Lender in response to such a
notice. Any such notice by Lender shall be delivered to each tenant personally, by mail or by
delivering such demand to each rental unit. Borrower shall not interfere with and shall cooperate
with Lender’s collection of such Rents.

							
	 	 	 	 	 	 	 
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     (c) Borrower represents and warrants to Lender that Borrower has not executed any prior
assignment of Rents (other than an assignment of Rents securing indebtedness that will be paid off
and discharged with the proceeds of the loan evidenced by the Note), that Borrower has not
performed, and Borrower covenants and agrees that it will not perform, any acts and has not
executed, and shall not execute, any instrument which would prevent Lender from exercising its
rights under this Section 3, and that at the time of execution of this Instrument there has been no
anticipation or prepayment of any Rents for more than two months prior to the due dates of such
Rents. Borrower shall not collect or accept payment of any Rents more than two months prior to the
due dates of such Rents.

     (d) If an Event of Default has occurred and is continuing, Lender may, regardless of the
adequacy of Lender’s security or the solvency of Borrower and even in the absence of waste, enter
upon and take and maintain full control of the Mortgaged Property in order to perform all acts that
Lender in its discretion determines to be necessary or desirable for the operation and maintenance
of the Mortgaged Property, including the execution, cancellation or modification of Leases, the
collection of all Rents, the making of repairs to the Mortgaged Property and the execution or
termination of contracts providing for the management, operation or maintenance of the Mortgaged
Property, for the purposes of enforcing the assignment of Rents pursuant to Section 3(a),
protecting the Mortgaged Property or the security of this Instrument, or for such other purposes as
Lender in its discretion may deem necessary or desirable. Alternatively, if an Event of Default
has occurred and is continuing, regardless of the adequacy of Lender’s security, without regard to
Borrower’s solvency and without the necessity of giving prior notice (oral or written) to Borrower,
Lender may apply to any court having jurisdiction for the appointment of a receiver for the
Mortgaged Property to take any or all of the actions set forth in the preceding sentence. If
Lender elects to seek the appointment of a receiver for the Mortgaged Property at any time after an
Event of Default has occurred and is continuing, Borrower, by its execution of this Instrument,
expressly consents to the appointment of such receiver, including the appointment of a receiver ex
parte if permitted by applicable law. Lender or the receiver, as the case may be, shall be
entitled to receive a reasonable fee for managing the Mortgaged Property. Immediately upon
appointment of a receiver or immediately upon the Lender’s entering upon and taking possession and
control of the Mortgaged Property, Borrower shall surrender possession of the Mortgaged Property to
Lender or the receiver, as the case may be, and shall deliver to Lender or the receiver, as the
case may be, all documents, records (including records on electronic or magnetic media), accounts,
surveys, plans, and specifications relating to the Mortgaged Property and all security deposits and
prepaid Rents. In the event Lender takes possession and control of the Mortgaged Property, Lender
may exclude Borrower and its representatives from the Mortgaged Property. Borrower acknowledges
and agrees that the exercise by Lender of any of the rights conferred under this Section 3 shall
not be construed to make Lender a mortgagee-in-possession of the Mortgaged Property so long as
Lender has not itself entered into actual possession of the Land and Improvements.

     (e) If Lender enters the Mortgaged Property, Lender shall be liable to account only to
Borrower and only for those Rents actually received. Lender shall not be liable to Borrower,
anyone claiming under or through Borrower or anyone having an interest in the Mortgaged Property,
by reason of any act or omission of Lender under this Section 3, and Borrower hereby releases and
discharges Lender from any such liability to the fullest extent permitted by law.

     (f) If the Rents are not sufficient to meet the costs of taking control of and managing the
Mortgaged Property and collecting the Rents, any funds expended by Lender for such purposes shall
become an additional part of the Indebtedness as provided in Section 12.

     (g) Any entering upon and taking of control of the Mortgaged Property by Lender or the
receiver, as the case may be, and any application of Rents as provided in this Instrument shall

							
	 	 	 	 	 	 	 
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not cure or waive any Event of Default or invalidate any other right or remedy of Lender under
applicable law or provided for in this Instrument.

     4. ASSIGNMENT OF LEASES; LEASES AFFECTING THE MORTGAGED PROPERTY.

     (a) As part of the consideration for the Indebtedness, Borrower absolutely and unconditionally
assigns and transfers to Lender all of Borrower’s right, title and interest in, to and under the
Leases, including Borrower’s right, power and authority to modify the terms of any such Lease, or
extend or terminate any such Lease. It is the intention of Borrower to establish a present,
absolute and irrevocable transfer and assignment to Lender of all of Borrower’s right, title and
interest in, to and under the Leases. Borrower and Lender intend this assignment of the Leases to
be immediately effective and to constitute an absolute present assignment and not an assignment for
additional security only. For purposes of giving effect to this absolute assignment of the Leases,
and for no other purpose, the Leases shall not be deemed to be a part of the “Mortgaged Property,”
as that term is defined in Section 1(s). However, if this present, absolute and unconditional
assignment of the Leases is not enforceable by its terms under the laws of the Property
Jurisdiction, then the Leases shall be included as a part of the Mortgaged Property and it is the
intention of the Borrower that in this circumstance this Instrument create and perfect a lien on
the Leases in favor of Lender, which lien shall be effective as of the date of this Instrument.

     (b) Until Lender gives notice to Borrower of Lender’s exercise of its rights under this
Section 4, Borrower shall have all rights, power and authority granted to Borrower under any Lease
(except as otherwise limited by this Section or any other provision of this Instrument), including
the right, power and authority to modify the terms of any Lease or extend or terminate any Lease.
Upon the occurrence of an Event of Default, the permission given to Borrower pursuant to the
preceding sentence to exercise all rights, power and authority under Leases shall automatically
terminate. Borrower shall comply with and observe Borrower’s obligations under all Leases,
including Borrower’s obligations pertaining to the maintenance and disposition of tenant security
deposits.

     (c) Borrower acknowledges and agrees that the exercise by Lender, either directly or by a
receiver, of any of the rights conferred under this Section 4 shall not be construed to make Lender
a mortgagee-in-possession of the Mortgaged Property so long as Lender has not itself entered into
actual possession of the Land and the Improvements. The acceptance by Lender of the assignment of
the Leases pursuant to Section 4(a) shall not at any time or in any event obligate Lender to take
any action under this Instrument or to expend any money or to incur any expenses. Lender shall not
be liable in any way for any injury or damage to person or property sustained by any person or
persons, firm or corporation in or about the Mortgaged Property. Prior to Lender’s actual entry
into and taking possession of the Mortgaged Property, Lender shall not (i) be obligated to perform
any of the terms, covenants and conditions contained in any Lease (or otherwise have any obligation
with respect to any Lease); (ii) be obligated to appear in or defend any action or proceeding
relating to the Lease or the Mortgaged Property; or (iii) be responsible for the operation,
control, care, management or repair of the Mortgaged Property or any portion of the Mortgaged
Property. The execution of this Instrument by Borrower shall constitute conclusive evidence that
all responsibility for the operation, control, care, management and repair of the Mortgaged
Property is and shall be that of Borrower, prior to such actual entry and taking of possession.

     (d) Upon delivery of notice by Lender to Borrower of Lender’s exercise of Lender’s rights
under this Section 4 at any time after the occurrence of an Event of Default, and without the
necessity of Lender entering upon and taking and maintaining control of the Mortgaged

							
	 	 	 	 	 	 	 
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Property directly, by a receiver, or by any other manner or proceeding permitted by the laws
of the Property Jurisdiction, Lender immediately shall have all rights, powers and authority
granted to Borrower under any Lease, including the right, power and authority to modify the terms
of any such Lease, or extend or terminate any such Lease.

     (e) Borrower shall, promptly upon Lender’s request, deliver to Lender an executed copy of each
residential Lease then in effect. All Leases for residential dwelling units shall be on forms
approved by Lender, shall be for initial terms of at least six months and not more than two years,
and shall not include options to purchase. If customary in the applicable market, residential
Leases with terms of less than six months may be permitted with Lender’s prior written consent.

     (f) Borrower shall not lease any portion of the Mortgaged Property for non-residential use
except with the prior written consent of Lender and Lender’s prior written approval of the Lease
agreement. Borrower shall not modify the terms of, or extend or terminate, any Lease for
non-residential use (including any Lease in existence on the date of this Instrument) without the
prior written consent of Lender. Borrower shall, without request by Lender, deliver an executed
copy of each non-residential Lease to Lender promptly after such Lease is signed. All
non-residential Leases, including renewals or extensions of existing Leases, shall specifically
provide that (1) such Leases are subordinate to the lien of this Instrument (unless waived in
writing by Lender); (2) the tenant shall attorn to Lender and any purchaser at a foreclosure sale,
such attornment to be self-executing and effective upon acquisition of title to the Mortgaged
Property by any purchaser at a foreclosure sale or by Lender in any manner; (3) the tenant agrees
to execute such further evidences of attornment as Lender or any purchaser at a foreclosure sale
may from time to time request; (4) the Lease shall not be terminated by foreclosure or any other
transfer of the Mortgaged Property; (5) after a foreclosure sale of the Mortgaged Property, Lender
or any other purchaser at such foreclosure sale may, at Lender’s or such purchaser’s option, accept
or terminate such Lease; and (6) the tenant shall, upon receipt after the occurrence of an Event of
Default of a written request from Lender, pay all Rents payable under the Lease to Lender.

     (g) Borrower shall not receive or accept Rent under any Lease (whether residential or
non-residential) for more than two months in advance.

     5. PAYMENT OF INDEBTEDNESS; PERFORMANCE UNDER LOAN DOCUMENTS; PREPAYMENT PREMIUM. Borrower
shall pay the Indebtedness when due in accordance with the terms of the Note and the other Loan
Documents and shall perform, observe and comply with all other provisions of the Note and the other
Loan Documents. Borrower shall pay a prepayment premium in connection with certain prepayments of
the Indebtedness, including a payment made after Lender’s exercise of any right of acceleration of
the Indebtedness, as provided in the Note.

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

     7. DEPOSITS FOR TAXES, INSURANCE AND OTHER CHARGES.

     (a) Borrower shall deposit with Lender on the day monthly installments of principal or
interest, or both, are due under the Note (or on another day designated in writing by Lender),
until the Indebtedness is paid in full, an additional amount sufficient to accumulate with Lender
the entire sum required to pay, when due (1) any water and sewer charges which, if not paid, may
result in a lien on all or any part of the Mortgaged Property, (2) the premiums for fire and other
hazard insurance, rent loss insurance and such other insurance as Lender may require under

							
	 	 	 	 	 	 	 
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Section 19, (3) Taxes, and (4) amounts for other charges and expenses which Lender at any time
reasonably deems necessary to protect the Mortgaged Property, to prevent the imposition of liens on
the Mortgaged Property, or otherwise to protect Lender’s interests, all as reasonably estimated
from time to time by Lender. The amounts deposited under the preceding sentence are collectively
referred to in this Instrument as the “Imposition Deposits”. The obligations of Borrower for which
the Imposition Deposits are required are collectively referred to in this Instrument as
“Impositions”. The amount of the Imposition Deposits shall be sufficient to enable Lender to pay
each Imposition before the last date upon which such payment may be made without any penalty or
interest charge being added. Lender shall maintain records indicating how much of the monthly
Imposition Deposits and how much of the aggregate Imposition Deposits held by Lender are held for
the purpose of paying Taxes, insurance premiums and each other obligation of Borrower for which
Imposition Deposits are required. Any waiver by Lender of the requirement that Borrower remit
Imposition Deposits to Lender may be revoked by Lender, in Lender’s discretion, at any time upon
notice to Borrower.

     (b) Imposition Deposits shall be held in an institution (which may be Lender, if Lender is
such an institution) whose deposits or accounts are insured or guaranteed by a federal agency.
Lender shall not be obligated to open additional accounts or deposit Imposition Deposits in
additional institutions when the amount of the Imposition Deposits exceeds the maximum amount of
the federal deposit insurance or guaranty. Lender shall apply the Imposition Deposits to pay
Impositions so long as no Event of Default has occurred and is continuing. Unless applicable law
requires, Lender shall not be required to pay Borrower any interest, earnings or profits on the
Imposition Deposits. Borrower hereby pledges and grants to Lender a security interest in the
Imposition Deposits as additional security for all of Borrower’s obligations under this Instrument
and the other Loan Documents. Any amounts deposited with Lender under this Section 7 shall not be
trust funds, nor shall they operate to reduce the Indebtedness, unless applied by Lender for that
purpose under Section 7(e).

     (c) If Lender receives a bill or invoice for an Imposition, Lender shall pay the Imposition
from the Imposition Deposits held by Lender. Lender shall have no obligation to pay any Imposition
to the extent it exceeds Imposition Deposits then held by Lender. Lender may pay an Imposition
according to any bill, statement or estimate from the appropriate public office or insurance
company without inquiring into the accuracy of the bill, statement or estimate or into the validity
of the Imposition.

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

     (e) If an Event of Default has occurred and is continuing, Lender may apply any Imposition
Deposits, in any amounts and in any order as Lender determines, in Lender’s discretion, to pay any
Impositions or as a credit against the Indebtedness. Upon payment in full of the Indebtedness,
Lender shall refund to Borrower any Imposition Deposits held by Lender.

     8. COLLATERAL AGREEMENTS. Borrower shall deposit with Lender such amounts as may be required
by any Collateral Agreement and shall perform all other obligations of Borrower under each
Collateral Agreement.

     9. APPLICATION OF PAYMENTS. If at any time Lender receives, from Borrower or otherwise, any
amount applicable to the Indebtedness which is less than all amounts

							
	 	 	 	 	 	 	 
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due and payable at such time, then Lender may apply that payment to amounts then due and
payable in any manner and in any order determined by Lender, in Lender’s discretion. Neither
Lender’s acceptance of an amount which is less than all amounts then due and payable nor Lender’s
application of such payment in the manner authorized shall constitute or be deemed to constitute
either a waiver of the unpaid amounts or an accord and satisfaction. Notwithstanding the
application of any such amount to the Indebtedness, Borrower’s obligations under this Instrument
and the Note shall remain unchanged.

     10. COMPLIANCE WITH LAWS. Borrower shall comply with all laws, ordinances, regulations and
requirements of any Governmental Authority and all recorded lawful covenants and agreements
relating to or affecting the Mortgaged Property, including all laws, ordinances, regulations,
requirements and covenants pertaining to health and safety, construction of improvements on the
Mortgaged Property, fair housing, zoning and land use, and Leases. Borrower also shall comply with
all applicable laws that pertain to the maintenance and disposition of tenant security deposits.
Borrower shall at all times maintain records sufficient to demonstrate compliance with the
provisions of this Section 10. Borrower shall take appropriate measures to prevent, and shall not
engage in or knowingly permit, any illegal activities at the Mortgaged Property that could endanger
tenants or visitors, result in damage to the Mortgaged Property, result in forfeiture of the
Mortgaged Property, or otherwise materially impair the lien created by this Instrument or Lender’s
interest in the Mortgaged Property. Borrower represents and warrants to Lender that no portion of
the Mortgaged Property has been or will be purchased with the proceeds of any illegal activity.

     11. USE OF PROPERTY. Unless required by applicable law, Borrower shall not (a) except for any
change in use approved by Lender, allow changes in the use for which all or any part of the
Mortgaged Property is being used at the time this Instrument was executed, (b) convert any
individual dwelling units or common areas to commercial use, (c) initiate or acquiesce in a change
in the zoning classification of the Mortgaged Property, or (d) establish any condominium or
cooperative regime with respect to the Mortgaged Property.

     12. PROTECTION OF LENDER’S SECURITY.

     (a) If Borrower fails to perform any of its obligations under this Instrument or any other
Loan Document, or if any action or proceeding is commenced which purports to affect the Mortgaged
Property, Lender’s security or Lender’s rights under this Instrument, 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 at Lender’s option may make such appearances, 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 (1) payment of fees and out-of-pocket expenses of attorneys,
accountants, inspectors and consultants, (2) entry upon the Mortgaged Property to make repairs or
secure the Mortgaged Property, (3) procurement of the insurance required by Section 19, and (4)
payment of amounts which Borrower has failed to pay under Sections 15 and 17.

     (b) Any amounts disbursed by Lender under this Section 12, or under any other provision of
this Instrument that treats such disbursement as being made under this Section 12, shall be added
to, and become part of, the principal component of the Indebtedness, shall be immediately due and
payable and shall bear interest from the date of disbursement until paid at the “Default Rate”, as
defined in the Note.

     (c) Nothing in this Section 12 shall require Lender to incur any expense or take any action.

							
	 	 	 	 	 	 	 
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     13. INSPECTION. Lender, its agents, representatives, and designees may make or cause to be
made entries upon and inspections of the Mortgaged Property (including environmental inspections
and tests) during normal business hours, or at any other reasonable time.

     14. BOOKS AND RECORDS; FINANCIAL REPORTING.

     (a) Borrower shall keep and maintain at all times at the Mortgaged Property or the management
agent’s offices, and upon Lender’s request shall make available at the Mortgaged Property, complete
and accurate books of account and records (including copies of supporting bills and invoices)
adequate to reflect correctly the operation of the Mortgaged Property, and copies of all written
contracts, Leases, and other instruments which affect the Mortgaged Property. The books, records,
contracts, Leases and other instruments shall be subject to examination and inspection at any
reasonable time by Lender.

          (b) Borrower shall furnish to Lender all of the following:

	 	(1)	 	within 120 days after the end of each fiscal year of Borrower,
a statement of income and expenses for Borrower’s operation of the Mortgaged
Property for that fiscal year, a statement of changes in financial position of
Borrower relating to the Mortgaged Property for that fiscal year and, when
requested by Lender, a balance sheet showing all assets and liabilities of
Borrower relating to the Mortgaged Property as of the end of that fiscal year;
	 
	 	(2)	 	within 120 days after the end of each fiscal year of Borrower,
and at any other time upon Lender’s request, a rent schedule for the Mortgaged
Property showing the name of each tenant, and for each tenant, the space
occupied, the lease expiration date, the rent payable for the current month,
the date through which rent has been paid, and any related information
requested by Lender;
	 
	 	(3)	 	within 120 days after the end of each fiscal year of Borrower,
and at any other time upon Lender’s request, 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;
	 
	 	(4)	 	within 120 days after the end of each fiscal year of Borrower,
and at any other time upon Lender’s request, a statement that identifies all
owners of any interest in Borrower and the interest held by each, if Borrower
is a corporation, all officers and directors of Borrower, and if Borrower is a
limited liability company, all managers who are not members;
	 
	 	(5)	 	upon Lender’s request, a monthly property management report for
the Mortgaged Property, showing the number of inquiries made and rental
applications received from tenants or prospective tenants and deposits received
from tenants and any other information requested by Lender;

							
	 	 	 	 	 	 	 
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	 	(6)	 	upon Lender’s request, a balance sheet, a statement of income
and expenses for Borrower and a statement of changes in financial position of
Borrower for Borrower’s most recent fiscal year; and
	 
	 	(7)	 	if required by Lender, a statement of income and expense for
the Mortgaged Property for the prior month or quarter.

     (c) Each of the statements, schedules and reports required by Section 14(b) shall be certified
to be complete and accurate by an individual having authority to bind Borrower, and shall be in
such form and contain such detail as Lender may reasonably require. Lender also may require that
any statements, schedules or reports be audited at Borrower’s expense by independent certified
public accountants acceptable to Lender.

     (d) If Borrower fails to provide in a timely manner the statements, schedules and reports
required by Section 14(b), Lender shall have the right to have Borrower’s books and records
audited, at Borrower’s expense, by independent certified public accountants selected by Lender in
order to obtain such statements, schedules and reports, and all related costs and expenses of
Lender shall become immediately due and payable and shall become an additional part of the
Indebtedness as provided in Section 12.

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

     (f) Borrower authorizes Lender to obtain a credit report on Borrower at any time.

     (g) If an Event of Default has occurred and Lender has not previously required Borrower to
furnish a quarterly statement of income and expense for the Mortgaged Property, Lender may require
Borrower to furnish such a statement within 45 days after the end of each fiscal quarter of
Borrower following such Event of Default.

     15. TAXES; OPERATING EXPENSES.

     (a) Subject to the provisions of Section 15(c) and Section 15(d), Borrower shall pay, or cause
to be paid, all Taxes when due and before the addition of any interest, fine, penalty or cost for
nonpayment.

     (b) Subject to the provisions of Section 15(c), Borrower shall pay the expenses of operating,
managing, maintaining and repairing the Mortgaged Property (including insurance premiums,
utilities, repairs and replacements) before the last date upon which each such payment may be made
without any penalty or interest charge being added.

     (c) As long as no Event of Default exists and Borrower has timely delivered to Lender any
bills or premium notices that it has received, Borrower shall not be obligated to pay Taxes,
insurance premiums or any other individual Imposition to the extent that sufficient Imposition
Deposits are held by Lender for the purpose of paying that specific Imposition. If an Event of
Default exists, Lender may exercise any rights Lender may have with respect to Imposition Deposits
without regard to whether Impositions are then due and payable. Lender shall have no liability to
Borrower for failing to pay any Impositions to the extent that any Event of Default has occurred
and is continuing, insufficient Imposition Deposits are held by Lender at the time an Imposition
becomes due and payable or Borrower has failed to provide Lender with bills and premium notices as
provided above.

							
	 	 	 	 	 	 	 
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     (d) Borrower, at its own expense, may contest by appropriate legal proceedings, conducted
diligently and in good faith, the amount or validity of any Imposition other than insurance
premiums, if (1) Borrower notifies Lender of the commencement or expected commencement of such
proceedings, (2) the Mortgaged Property is not in danger of being sold or forfeited, (3) Borrower
deposits with Lender reserves sufficient to pay the contested Imposition, if requested by Lender,
and (4) Borrower furnishes whatever additional security is required in the proceedings or is
reasonably requested by Lender, which may include the delivery to Lender of the reserves
established by Borrower to pay the contested Imposition.

     (e) Borrower shall promptly deliver to Lender a copy of all notices of, and invoices for,
Impositions, and if Borrower pays any Imposition directly, Borrower shall promptly furnish to
Lender receipts evidencing such payments.

     16. LIENS; ENCUMBRANCES. Borrower acknowledges that, to the extent provided in Section 21,
the grant, creation or existence of any mortgage, deed of trust, deed to secure debt, security
interest or other lien or encumbrance (a “Lien”) on the Mortgaged Property (other than the lien of
this Instrument) or on certain ownership interests in Borrower, whether voluntary, involuntary or
by operation of law, and whether or not such Lien has priority over the lien of this Instrument, is
a “Transfer” which constitutes an Event of Default.

     17. PRESERVATION, MANAGEMENT AND MAINTENANCE OF MORTGAGED PROPERTY.

     (a) Borrower (1) shall not commit waste or permit impairment or deterioration of the Mortgaged
Property, (2) shall not abandon the Mortgaged Property, (3) shall restore or repair promptly, in a
good and workmanlike manner, any damaged part of the Mortgaged Property to the equivalent of its
original condition, or such other condition as Lender may approve in writing, whether or not
insurance proceeds or condemnation awards are available to cover any costs of such restoration or
repair, (4) shall keep the Mortgaged Property in good repair, including the replacement of
Personalty and Fixtures with items of equal or better function and quality, (5) shall provide for
professional management of the Mortgaged Property by a residential rental property manager
satisfactory to Lender under a contract approved by Lender in writing, and (6) shall give notice to
Lender of and, unless otherwise directed in writing by Lender, shall appear in and defend any
action or proceeding purporting to affect the Mortgaged Property, Lender’s security or Lender’s
rights under this Instrument. Borrower shall not (and shall not permit any tenant or other person
to) remove, demolish or alter the Mortgaged Property or any part of the Mortgaged Property except
in connection with the replacement of tangible Personalty.

     (b) If, in connection with the making of the loan evidenced by the Note or at any later date,
Lender waives in writing the requirement of Section 17(a)(5) above that Borrower enter into a
written contract for management of the Mortgaged Property and if, after the date of this
Instrument, Borrower intends to change the management of the Mortgaged Property, Lender shall have
the right to approve such new property manager and the written contract for the management of the
Mortgaged Property and require that Borrower and such new property manager enter into an Assignment
of Management Agreement on a form approved by Lender. If required by Lender (whether before or
after an Event of Default), Borrower will cause any Affiliate of Borrower to whom fees are payable
for the management of the Mortgaged Property to enter into an agreement with Lender, in a form
approved by Lender, providing for subordination of those fees and such other provisions as Lender
may require. “Affiliate of Borrower” means any corporation, partnership, joint venture, limited
liability company, limited liability partnership, trust or individual controlled by, under common
control with, or which controls Borrower (the term “control” for these purposes shall mean the
ability, whether by the ownership of shares or other equity interests, by

							
	 	 	 	 	 	 	 
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contract or otherwise, to elect a majority of the directors of a corporation, to make
management decisions on behalf of, or independently to select the managing partner of, a
partnership, or otherwise to have the power independently to remove and then select a majority of
those individuals exercising managerial authority over an entity, and control shall be conclusively
presumed in the case of the ownership of 50% or more of the equity interests).

     18. ENVIRONMENTAL HAZARDS.

     (a) Except for matters covered by a written program of operations and maintenance approved in
writing by Lender (an “O&M Program”) or matters described in Section 18(b), Borrower shall not
cause or permit any of the following:

	 	(1)	 	the presence, use, generation, release, treatment, processing,
storage (including storage in above ground and underground storage tanks),
handling, or disposal of any Hazardous Materials on or under the Mortgaged
Property or any other property of Borrower that is adjacent to the Mortgaged
Property;
	 
	 	(2)	 	the transportation of any Hazardous Materials to, from, or
across the Mortgaged Property;
	 
	 	(3)	 	any occurrence or condition on the Mortgaged Property or any
other property of Borrower that is adjacent to the Mortgaged Property, which
occurrence or condition is or may be in violation of Hazardous Materials Laws;
or
	 
	 	(4)	 	any violation of or noncompliance with the terms of any
Environmental Permit with respect to the Mortgaged Property or any property of
Borrower that is adjacent to the Mortgaged Property.

     The matters described in clauses (1) through (4) above are referred to collectively in this
Section 18 as “Prohibited Activities or Conditions”.

     (b) Prohibited Activities and Conditions shall not include the safe and lawful use and storage
of quantities of (1) pre-packaged supplies, cleaning materials and petroleum products customarily
used in the operation and maintenance of comparable multifamily properties, (2) cleaning materials,
personal grooming items and other items sold in pre-packaged containers for consumer use and used
by tenants and occupants of residential dwelling units in the Mortgaged Property; and (3) petroleum
products used in the operation and maintenance of motor vehicles from time to time located on the
Mortgaged Property’s parking areas, so long as all of the foregoing are used, stored, handled,
transported and disposed of in compliance with Hazardous Materials Laws.

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

     (d) If an O&M Program has been established with respect to Hazardous Materials, Borrower shall
comply in a timely manner with, and cause all employees, agents, and contractors

							
	 	 	 	 	 	 	 
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of Borrower and any other persons present on the Mortgaged Property to comply with the O&M
Program. All costs of performance of Borrower’s obligations under any O&M Program shall be paid by
Borrower, and Lender’s out-of-pocket costs incurred in connection with the monitoring and review of
the O&M Program and Borrower’s performance shall be paid by Borrower upon demand by Lender. Any
such out-of-pocket costs of Lender which Borrower fails to pay promptly shall become an additional
part of the Indebtedness as provided in Section 12.

     (e) Borrower represents and warrants to Lender that, except as previously disclosed by
Borrower to Lender in writing:

	 	(1)	 	Borrower has not at any time engaged in, caused or permitted
any Prohibited Activities or Conditions;
	 
	 	(2)	 	to the best of Borrower’s knowledge after reasonable and
diligent inquiry, no Prohibited Activities or Conditions exist or have existed;
	 
	 	(3)	 	except to the extent previously disclosed by Borrower to Lender
in writing, the Mortgaged Property does not now contain any underground storage
tanks, and, to the best of Borrower’s knowledge after reasonable and diligent
inquiry, the Mortgaged Property has not contained any underground storage tanks
in the past. If there is an underground storage tank located on the Property
which has been previously disclosed by Borrower to Lender in writing, that tank
complies with all requirements of Hazardous Materials Laws;
	 
	 	(4)	 	Borrower has complied with all Hazardous Materials Laws,
including all requirements for notification regarding releases of Hazardous
Materials. Without limiting the generality of the foregoing, Borrower has
obtained all Environmental Permits required for the operation of the Mortgaged
Property in accordance with Hazardous Materials Laws now in effect and all such
Environmental Permits are in full force and effect;
	 
	 	(5)	 	no event has occurred with respect to the Mortgaged Property
that constitutes, or with the passing of time or the giving of notice would
constitute, noncompliance with the terms of any Environmental Permit;
	 
	 	(6)	 	there are no actions, suits, claims or proceedings pending or,
to the best of Borrower’s knowledge after reasonable and diligent inquiry,
threatened that involve the Mortgaged Property and allege, arise out of, or
relate to any Prohibited Activity or Condition; and
	 
	 	(7)	 	Borrower has not received any complaint, order, notice of
violation or other communication from any Governmental Authority with regard to
air emissions, water discharges, noise emissions or Hazardous Materials, or any
other environmental, health or safety matters affecting the Mortgaged Property
or any other property of Borrower that is adjacent to the Mortgaged Property.

The representations and warranties in this Section 18 shall be continuing representations and
warranties that shall be deemed to be made by Borrower throughout the term of the loan evidenced by
the Note, until the Indebtedness has been paid in full.

							
	 	 	 	 	 	 	 
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     (f) Borrower shall promptly notify Lender in writing upon the occurrence of any of the
following events:

	 	(1)	 	Borrower’s discovery of any Prohibited Activity or Condition;
	 
	 	(2)	 	Borrower’s receipt of or knowledge of any complaint, order,
notice of violation or other communication from any Governmental Authority or
other person with regard to present or future alleged Prohibited Activities or
Conditions or any other environmental, health or safety matters affecting the
Mortgaged Property or any other property of Borrower that is adjacent to the
Mortgaged Property; and
	 
	 	(3)	 	any representation or warranty in this Section 18 becomes
untrue after the date of this Agreement.

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

     (g) Borrower shall pay promptly the costs of any environmental inspections, tests or audits
(“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 Section 21, or required
by Lender following a reasonable determination by Lender that Prohibited Activities or Conditions
may exist. Any such costs incurred by Lender (including the fees and out-of-pocket costs of
attorneys and technical consultants whether incurred in connection with any judicial or
administrative process or otherwise) which Borrower fails to pay promptly shall become an
additional part of the Indebtedness as provided in Section 12. The results of all Environmental
Inspections made by Lender shall at all times remain the property of Lender and Lender shall have
no obligation to disclose or otherwise make available to Borrower or any other party such results
or any other information obtained by Lender in connection with its Environmental Inspections.
Lender hereby reserves the right, and Borrower hereby 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 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 of Lender’s Environmental Inspections. Borrower acknowledges that
Lender cannot control or otherwise assure the truthfulness or accuracy of the results of any of its
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
which a party may bid at such sale. Borrower agrees that Lender shall have no liability whatsoever
as a result of delivering the results of any of its Environmental Inspections to any third party,
and Borrower hereby 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 of Lender’s Environmental Inspections.

     (h) 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 under any Hazardous Materials Law, Borrower
shall, by the earlier of (1) the applicable deadline required by Hazardous Materials Law or (2) 30
days after notice from Lender demanding such action, begin performing the Remedial Work, and
thereafter diligently prosecute it to completion, and shall 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,

							
	 	 	 	 	 	 	 
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Lender may, at its option, cause the Remedial Work to be completed, in which case Borrower
shall reimburse Lender on demand for the cost of doing so. Any reimbursement due from Borrower to
Lender shall become part of the Indebtedness as provided in Section 12.

     (i) Borrower shall cooperate with any inquiry by any Governmental Authority and shall comply
with any governmental or judicial order which arises from any alleged Prohibited Activity or
Condition.

     (j) Borrower shall indemnify, hold harmless and defend (i) Lender, (ii) any prior owner or
holder of the Note, (iii) the Loan Servicer, (iv) any prior Loan Servicer, (v) the officers,
directors, shareholders, partners, employees and trustees of any of the foregoing, and (vi) the
heirs, legal representatives, successors and assigns of each of the foregoing (collectively, the
“Indemnitees”) from and against all proceedings, claims, damages, penalties and costs (whether
initiated or sought by Governmental Authorities or private parties), including fees and
out-of-pocket expenses of attorneys and expert witnesses, investigatory fees, and remediation
costs, whether incurred in connection with any judicial or administrative process or otherwise,
arising directly or indirectly from any of the following:

	 	(1)	 	any breach of any representation or warranty of Borrower in
this Section 18;
	 
	 	(2)	 	any failure by Borrower to perform any of its obligations under
this Section 18;
	 
	 	(3)	 	the existence or alleged existence of any Prohibited Activity
or Condition;
	 
	 	(4)	 	the presence or alleged presence of Hazardous Materials on or
under the Mortgaged Property or any property of Borrower that is adjacent to
the Mortgaged Property; and
	 
	 	(5)	 	the actual or alleged violation of any Hazardous Materials Law.

     (k) Counsel selected by Borrower to defend Indemnitees shall be subject to the approval of
those Indemnitees. However, any Indemnitee may elect to defend any claim or legal or
administrative proceeding at the Borrower’s expense.

     (l) Borrower shall not, without the prior written consent of those Indemnitees who are named
as parties to a claim or legal or administrative proceeding (a “Claim”), settle or compromise the
Claim if the settlement (1) 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 (2) may materially and
adversely affect Lender, as determined by Lender in its discretion.

     (m) Lender agrees that the indemnity under this Section 18 shall be limited to the assets of
Borrower and Lender shall not seek to recover any deficiency from any natural persons who are
general partners of Borrower.

     (n) Borrower shall, at its own cost and expense, do all of the following:

	 	(1)	 	pay or satisfy any judgment or decree that may be entered
against any Indemnitee or Indemnitees in any legal or administrative proceeding
incident to any matters against which Indemnitees are entitled to be
indemnified under this Section 18;

							
	 	 	 	 	 	 	 
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	 	(2)	 	reimburse Indemnitees for any expenses paid or incurred in
connection with any matters against which Indemnitees are entitled to be
indemnified under this Section 18; and
	 
	 	(3)	 	reimburse Indemnitees for any and all expenses, including fees
and out-of-pocket expenses of attorneys and expert witnesses, paid or incurred
in connection with the enforcement by Indemnitees of their rights under this
Section 18, or in monitoring and participating in any legal or administrative
proceeding.

     (o) In any circumstances in which the indemnity under this Section 18 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 shall
not be unreasonably withheld, delayed or conditioned), may settle or compromise any action or legal
or administrative proceeding. Borrower shall reimburse Lender upon demand for all costs and
expenses incurred by Lender, including all costs of settlements entered into in good faith, and the
fees and out-of-pocket expenses of such attorneys and consultants.

     (p) The provisions of this Section 18 shall 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 shall be entitled to indemnification under this Section 18 without regard to
whether Lender or that Indemnitee has exercised any rights against the Mortgaged Property or any
other security, pursued any rights against any guarantor, or pursued any other rights available
under the Loan Documents or applicable law. If Borrower consists of more than one person or entity,
the obligation of those persons or entities to indemnify the Indemnitees under this Section 18
shall be joint and several. The obligation of Borrower to indemnify the Indemnitees under this
Section 18 shall 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 this Instrument.

     19. PROPERTY AND LIABILITY INSURANCE.

     (a) Borrower shall keep the Improvements insured at all times against such hazards as Lender
may from time to time require, which insurance shall include but not be limited to coverage against
loss by fire and allied perils, general boiler and machinery coverage, and business income
coverage. Lender’s insurance requirements may change from time to time throughout the term of the
Indebtedness. If Lender so requires, such insurance shall also include sinkhole insurance, mine
subsidence insurance, earthquake insurance, and, if the Mortgaged Property does not conform to
applicable zoning or land use laws, building ordinance or law coverage. If any of the Improvements
is located in an area identified by the Federal Emergency Management Agency (or any successor to
that agency) as an area having special flood hazards, and if flood insurance is available in that
area, Borrower shall insure such Improvements against loss by flood.

     (b) All premiums on insurance policies required under Section 19(a) shall be paid in the
manner provided in Section 7, unless Lender has designated in writing another method of payment.
All such policies shall also be in a form approved by Lender. All policies of property damage
insurance shall include a non-contributing, non-reporting mortgage clause in favor of, and in a
form approved by, Lender. Lender shall have the right to hold the original policies or duplicate
original policies of all insurance required by Section 19(a). Borrower shall promptly deliver to
Lender a copy of all renewal and other notices received by Borrower with respect to the policies
and all receipts for paid premiums. At least 30 days prior to the expiration date of a

							
	 	 	 	 	 	 	 
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policy, Borrower shall deliver to Lender the original (or a duplicate original) of a renewal
policy in form satisfactory to Lender.

     (c) Borrower shall maintain at all times commercial general liability insurance, workers’
compensation insurance and such other liability, errors and omissions and fidelity insurance
coverages as Lender may from time to time require.

     (d) All insurance policies and renewals of insurance policies required by this Section 19
shall be in such amounts and for such periods as Lender may from time to time require, and shall be
issued by insurance companies satisfactory to Lender.

     (e) Borrower shall comply with all insurance requirements and shall not permit any condition
to exist on the Mortgaged Property that would invalidate any part of any insurance coverage that
this Instrument requires Borrower to maintain.

     (f) In the event of loss, Borrower shall give immediate written notice to the insurance
carrier and to Lender. Borrower hereby 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
damage insurance, to appear in and prosecute any action arising from such property damage insurance
policies, to collect and receive the proceeds of property damage 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 19 shall require Lender to incur any expense or take any action. Lender may, at Lender’s
option, (1) hold the balance of such proceeds to be used to reimburse Borrower for the cost of
restoring and repairing the Mortgaged Property to the equivalent of its original condition or to a
condition approved by Lender (the “Restoration”), or (2) apply the balance of such proceeds to the
payment of the Indebtedness, whether or not then due. To the extent Lender determines to apply
insurance proceeds to Restoration, Lender shall do so in accordance with Lender’s then-current
policies relating to the restoration of casualty damage on similar multifamily properties.

     (g) Lender shall not exercise its option to apply insurance proceeds to the payment of the
Indebtedness if all of the following conditions are met: (1) no Event of Default (or any event
which, with the giving of notice or the passage of time, or both, would constitute an Event of
Default) has occurred and is continuing; (2) Lender determines, in its discretion, that there will
be sufficient funds to complete the Restoration; (3) Lender determines, in its discretion, that the
rental income from the Mortgaged Property after completion of the Restoration will be sufficient to
meet all operating costs and other expenses, Imposition Deposits, deposits to reserves and loan
repayment obligations relating to the Mortgaged Property; (4) Lender determines, in its discretion,
that the Restoration will be completed before the earlier of (A) one year before the maturity date
of the Note or (B) one year after the date of the loss or casualty; and (5) upon Lender’s request,
Borrower provides Lender evidence of the availability during and after the Restoration of the
insurance required to be maintained by Borrower pursuant to this Section 19.

     (h) If the Mortgaged Property is sold at a foreclosure sale or Lender acquires title to the
Mortgaged Property, Lender shall automatically succeed to all rights of Borrower in and to any
insurance policies and unearned insurance premiums and in and to the proceeds resulting from any
damage to the Mortgaged Property prior to such sale or acquisition.

     20. CONDEMNATION.

     (a) Borrower shall promptly notify Lender of any action or proceeding relating to any
condemnation or other taking, or conveyance in lieu thereof, of all or any part of the Mortgaged

							
	 	 	 	 	 	 	 
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	Property, whether direct or indirect (a “Condemnation”). Borrower shall 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. This power of attorney is coupled with an interest and therefore is irrevocable.
However, nothing contained in this Section 20 shall require Lender to incur any expense or take any
action. Borrower hereby transfers and assigns to Lender all right, title and interest of Borrower
in and to any award or payment with respect to (i) any Condemnation, or any conveyance in lieu of
Condemnation, and (ii) any damage to the Mortgaged Property caused by governmental action that does
not result in a Condemnation.

     (b) Lender may apply such awards or proceeds, after the deduction of Lender’s expenses
incurred in the collection of such amounts, at Lender’s option, to the restoration or repair of the
Mortgaged Property or to the payment of the Indebtedness, with the balance, if any, to Borrower.
Unless Lender otherwise agrees in writing, any application of any awards or proceeds to the
Indebtedness shall not extend or postpone the due date of any monthly installments referred to in
the Note, Section 7 of this Instrument or any Collateral Agreement, or change the amount of such
installments. Borrower agrees to execute such further evidence of assignment of any awards or
proceeds as Lender may require.

     21. TRANSFERS OF THE MORTGAGED PROPERTY OR INTERESTS IN BORROWER.

     (a) The occurrence of any of the following events shall constitute an Event of Default under
this Instrument:

	 	(1)	 	a Transfer of all or any part of the Mortgaged Property or any
interest in the Mortgaged Property;
	 
	 	(2)	 	a Transfer of a Controlling Interest in Borrower;
	 
	 	(3)	 	a Transfer of a Controlling Interest in any entity which owns,
directly or indirectly through one or more intermediate entities, a Controlling
Interest in Borrower;
	 
	 	(4)	 	a Transfer of all or any part of Key Principal’s ownership
interests (other than limited partnership interests) in Borrower, or in any
other entity which owns, directly or indirectly through one or more
intermediate entities, an ownership interest in Borrower;
	 
	 	(5)	 	if Key Principal is an entity, (A) a Transfer of a Controlling
Interest in Key Principal, or (B) a Transfer of a Controlling Interest in any
entity which owns, directly or indirectly through one or more intermediate
entities, a Controlling Interest in Key Principal;
	 
	 	(6)	 	if Borrower or Key Principal is a trust, the termination or
revocation of such trust; and
	 
	 	(7)	 	a conversion of Borrower from one type of legal entity into
another type of legal entity, whether or not there is a Transfer.

							
	 	 	 	 	 	 	 
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     Lender shall not be required to demonstrate any actual impairment of its security or any
increased risk of default in order to exercise any of its remedies with respect to an Event of
Default under this Section 21.

     (b) The occurrence of any of the following events shall not constitute an Event of Default
under this Instrument, notwithstanding any provision of Section 21(a) to the contrary:

	 	(1)	 	a Transfer to which Lender has consented;
	 
	 	(2)	 	a Transfer that occurs by devise, descent, or by operation of
law upon the death of a natural person;
	 
	 	(3)	 	the grant of a leasehold interest in an individual dwelling
unit for a term of two years or less not containing an option to purchase;
	 
	 	(4)	 	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;
	 
	 	(5)	 	the grant of an easement, if before the grant Lender determines
that the easement will not materially affect the operation or value of the
Mortgaged Property or Lender’s interest in the Mortgaged Property, and Borrower
pays to Lender, upon demand, all costs and expenses incurred by Lender in
connection with reviewing Borrower’s request; and
	 
	 	(6)	 	the creation of a tax lien or a mechanic’s, materialman’s or
judgment lien against the Mortgaged Property which is bonded off, released of
record or otherwise remedied to Lender’s satisfaction within 30 days of the
date of creation.

     (c) Lender shall consent, without any adjustment to the rate at which the Indebtedness secured
by this Instrument bears interest or to any other economic terms of the Indebtedness, to a Transfer
that would otherwise violate this Section 21 if, prior to the Transfer, Borrower has satisfied each
of the following requirements:

	 	(1)	 	the submission to Lender of all information required by Lender
to make the determination required by this Section 21(c);
	 
	 	(2)	 	the absence of any Event of Default;
	 
	 	(3)	 	the transferee meets all of the eligibility, credit, management
and other standards (including any standards with respect to previous
relationships between Lender and the transferee and the organization of the
transferee) customarily applied by Lender at the time of the proposed Transfer
to the approval of borrowers in connection with the origination or purchase of
similar mortgages, deeds of trust or deeds to secure debt on multifamily
properties;
	 
	 	(4)	 	the Mortgaged Property, at the time of the proposed Transfer,
meets all standards as to its physical condition that are customarily applied
by Lender at the time of the proposed Transfer to the approval of properties

							
	 	 	 	 	 	 	 
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	 	 	 	in connection with the origination or purchase of similar mortgages on
multifamily properties;
	 
	 	(5)	 	in the case of a Transfer of all or any part of the Mortgaged
Property, or direct or indirect ownership interests in Borrower or Key
Principal (if an entity), if transferor or any other person has obligations
under any Loan Document, the execution by the transferee or one or more
individuals or entities acceptable to Lender of an assumption agreement
(including, if applicable, an Acknowledgement and Agreement of Key Principal to
Personal Liability for Exceptions to Non-Recourse Liability) that is acceptable
to Lender and that, among other things, requires the transferee to perform all
obligations of transferor or such person set forth in such Loan Document, and
may require that the transferee comply with any provisions of this Instrument
or any other Loan Document which previously may have been waived by Lender;
	 
	 	(6)	 	if a guaranty has been executed and delivered in connection
with the Note, this Instrument or any of the other Loan Documents, the Borrower
causes one or more individuals or entities acceptable to Lender to execute and
deliver to Lender a guaranty in a form acceptable to Lender; and
	 
	 	(7)	 	Lender’s receipt of all of the following:

	 	(A)	 	a non-refundable review fee in the amount of
$3,000 and a transfer fee equal to 1 percent of the outstanding
Indebtedness immediately prior to the Transfer.
	 
	 	(B)	 	In addition, Borrower shall be required to
reimburse Lender for all of Lender’s out-of-pocket costs (including
reasonable attorneys’ fees) incurred in reviewing the Transfer request,
to the extent such expenses exceed $3,000.

     (d) For purposes of this Section, the following terms shall have the meanings set forth below:

	 	(1)	 	“Initial Owners” means, with respect to Borrower or any other
entity, the persons or entities who on the date of the Note own in the
aggregate 100% of the ownership interests in Borrower or that entity.
	 
	 	(2)	 	A Transfer of a “Controlling Interest” shall mean, with respect
to any entity, the following:

	 	(i)	 	if such entity is a general partnership or a
joint venture, a Transfer of any general partnership interest or joint
venture interest which would cause the Initial Owners to own less than
51% of all general partnership or joint venture interests in such
entity;
	 
	 	(ii)	 	if such entity is a limited partnership, a
Transfer of any general partnership interest;
	 
	 	(iii)	 	if such entity is a limited liability company
or a limited liability partnership, a Transfer of any membership or
other ownership

							
	 	 	 	 	 	 	 
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	 	 	 	interest which would cause the Initial Owners to own less than 51% of
all membership or other ownership interests in such entity;
	 
	 	(iv)	 	if such entity is a corporation (other than a
Publicly-Held Corporation) with only one class of voting stock, a
Transfer of any voting stock which would cause the Initial Owners to
own less than 51% of voting stock in such corporation;
	 
	 	(v)	 	if such entity is a corporation (other than a
Publicly-Held Corporation) with more than one class of voting stock, a
Transfer of any voting stock which would cause the Initial Owners to
own less than a sufficient number of shares of voting stock having the
power to elect the majority of directors of such corporation; and
	 
	 	(vi)	 	if such entity is a trust, the removal,
appointment or substitution of a trustee of such trust other than (A)
in the case of a land trust, or (B) if the trustee of such trust after
such removal, appointment or substitution is a trustee identified in
the trust agreement approved by Lender.

	 	(3)	 	“Publicly-Held Corporation” shall mean a corporation the
outstanding voting stock of which is registered under Section 12(b) or 12(g) of
the Securities and Exchange Act of 1934, as amended.

     22. EVENTS OF DEFAULT. The occurrence of any one or more of the following shall constitute an
Event of Default under this Instrument:

     (a) any failure by Borrower to pay or deposit when due any amount required by the Note, this
Instrument or any other Loan Document;

     (b) any failure by Borrower to maintain the insurance coverage required by Section 19;

     (c) any failure by Borrower to comply with the provisions of Section 33;

     (d) fraud or material misrepresentation or material omission by Borrower, or any of its
officers, directors, trustees, general partners or managers, Key Principal or any guarantor in
connection with (A) the application for or creation of the Indebtedness, (B) any financial
statement, rent roll, or other report or information provided to Lender during the term of the
Indebtedness, or (C) any request for Lender’s consent to any proposed action, including a request
for disbursement of funds under any Collateral Agreement;

     (e) any Event of Default under Section 21;

     (f) the commencement of a forfeiture action or proceeding, whether civil or criminal, which,
in Lender’s reasonable judgment, could result in a forfeiture of the Mortgaged Property or
otherwise materially impair the lien created by this Instrument or Lender’s interest in the
Mortgaged Property;

     (g) any failure by Borrower to perform any of its obligations under this Instrument (other
than those specified in Sections 22(a) through (f)), as and when required, which continues for a
period of 30 days after notice of such failure by Lender to Borrower, but no such notice or grace
period shall apply in the case of any such failure which could, in Lender’s judgment,

							
	 	 	 	 	 	 	 
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absent immediate exercise by Lender of a right or remedy under this Instrument, result in harm
to Lender, impairment of the Note or this Instrument or any other security given under any other
Loan Document;

     (h) any failure by Borrower to perform any of its obligations as and when required under any
Loan Document other than this Instrument which continues beyond the applicable cure period, if any,
specified in that Loan Document; and

     (i) any exercise by the holder of any other debt instrument secured by a mortgage, deed of
trust or deed to secure debt on the Mortgaged Property of a right to declare all amounts due under
that debt instrument immediately due and payable.

     23. REMEDIES CUMULATIVE. Each right and remedy provided in this Instrument is distinct from
all other rights or remedies under this Instrument or any other Loan Document or afforded by
applicable law, and each shall be cumulative and may be exercised concurrently, independently, or
successively, in any order.

     24. FORBEARANCE.

     (a) Lender may (but shall 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: extend the
time for payment of all or any part of the Indebtedness; reduce the payments due under this
Instrument, the Note, or any other Loan Document; release anyone liable for the payment of any
amounts under this Instrument, the Note, or any other Loan Document; accept a renewal of the Note;
modify the terms and time of payment of the Indebtedness; join in any extension or subordination
agreement; release any Mortgaged Property; take or release other or additional security; modify the
rate of interest or period of amortization of the Note or change the amount of the monthly
installments payable under the Note; and otherwise modify this Instrument, the Note, or any other
Loan Document.

     (b) Any forbearance by Lender in exercising any right or remedy under the Note, this
Instrument, or any other Loan Document or otherwise afforded by applicable law, shall not be a
waiver of or preclude the exercise of any other 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, shall 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
shall not constitute an election by Lender of remedies so as to preclude the exercise of any other
right available to Lender. Lender’s receipt of any awards or proceeds under Sections 19 and 20
shall not operate to cure or waive any Event of Default.

     25. LOAN CHARGES. If any applicable law limiting the amount of interest or other charges
permitted to be collected from Borrower is interpreted so that any charge provided for in any Loan
Document, whether considered separately or together with other charges levied in connection with
any other Loan Document, violates that law, and Borrower is entitled to the benefit of that law,
that charge is hereby reduced to the extent necessary to eliminate that violation. The amounts, if
any, previously paid to Lender in excess of the permitted amounts shall be applied by Lender to
reduce the principal of the Indebtedness. For the purpose of determining whether any applicable
law limiting the amount of interest or other charges permitted to be collected from Borrower has
been violated, all Indebtedness which constitutes interest, as well as all other charges levied in
connection with the Indebtedness which constitute interest, shall be deemed to be allocated and
spread over the stated term of the Note. Unless

							
	 	 	 	 	 	 	 
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otherwise required by applicable law, such allocation and spreading shall be effected in such
a manner that the rate of interest so computed is uniform throughout the stated term of the Note.

     26. WAIVER OF STATUTE OF LIMITATIONS. Borrower hereby waives the right to assert any statute
of limitations as a bar to the enforcement of the lien of this Instrument or to any action brought
to enforce any Loan Document.

     27. WAIVER OF MARSHALLING. Notwithstanding the existence of any other security interests in
the Mortgaged Property held by Lender or by any other party, Lender shall have the right to
determine the order in which any or all of the Mortgaged Property shall be subjected to the
remedies provided in this Instrument, the Note, any other Loan Document or applicable law. Lender
shall have the right to determine the order in which any or all portions of the Indebtedness are
satisfied from the proceeds realized upon the exercise of such remedies. Borrower and any party
who now or in the future acquires a security interest in the Mortgaged Property and who has actual
or constructive notice of this Instrument waives any and all right to require the marshalling of
assets or to require that any of the Mortgaged Property be sold in the inverse order of alienation
or that any of the Mortgaged Property be sold in parcels or as an entirety in connection with the
exercise of any of the remedies permitted by applicable law or provided in this Instrument.

     28. FURTHER ASSURANCES. Borrower shall execute, acknowledge, and deliver, at its sole cost
and expense, all further acts, deeds, conveyances, assignments, estoppel certificates, financing
statements, transfers and assurances as Lender may require from time to time in order to better
assure, grant, and convey to Lender the rights intended to be granted, now or in the future, to
Lender under this Instrument and the Loan Documents.

     29. ESTOPPEL CERTIFICATE. Within 10 days after a request from Lender, Borrower shall deliver
to Lender a written statement, signed and acknowledged by Borrower, certifying to Lender or any
person designated by Lender, as of the date of such statement, (i) that the Loan Documents are
unmodified and in full force and effect (or, if there have been modifications, that the Loan
Documents are in full force and effect as modified and setting forth such modifications); (ii) the
unpaid principal balance of the Note; (iii) the date to which interest under the Note has been
paid; (iv) that Borrower is not in default in paying the Indebtedness or in performing or observing
any of the covenants or agreements contained in this Instrument or any of the other Loan Documents
(or, if the Borrower is in default, describing such default in reasonable detail); (v) whether or
not there are then existing any 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.

     30. GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE.

     (a) This Instrument, and any Loan Document which does not itself expressly identify the law
that is to apply to it, shall be governed by the laws of the jurisdiction in which the Land is
located (the “Property Jurisdiction”).

     (b) Borrower agrees that any controversy arising under or in relation to the Note, this
Instrument, or any other Loan Document shall be litigated exclusively in the Property Jurisdiction.
The state and federal courts and authorities with jurisdiction in the Property Jurisdiction shall
have exclusive jurisdiction over all controversies which shall arise under or in relation to the
Note, any security for the Indebtedness, or any other Loan Document. Borrower irrevocably consents
to service, jurisdiction, and venue of such courts for any such litigation and waives any other
venue to which it might be entitled by virtue of domicile, habitual residence or otherwise.

							
	 	 	 	 	 	 	 
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     31. NOTICE.

     (a) All notices, demands and other communications (“notice”) under or concerning this
Instrument shall be in writing. Each notice shall be addressed to the intended recipient at its
address set forth in this Instrument, and shall be deemed given on the earliest to occur of (1) the
date when the notice is received by the addressee; (2) 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 (3) the third Business Day after the notice is deposited in the
United States mail with postage prepaid, certified mail, return receipt requested. As used in this
Section 31, the term “Business Day” means any day other than a Saturday, a Sunday or any other day
on which Lender is not open for business.

     (b) Any party to this Instrument 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 31.
Each party agrees that it will not refuse or reject delivery of any notice given in accordance with
this Section 31, that it will acknowledge, in writing, the receipt of any notice upon request by
the other party and that any notice rejected or refused by it shall be deemed for purposes of this
Section 31 to have been received by the rejecting party on the date so refused or rejected, as
conclusively established by the records of the U.S. Postal Service or the courier service.

     (c) Any notice under the Note and any other Loan Document which does not specify how notices
are to be given shall be given in accordance with this Section 31.

     32. SALE OF NOTE; CHANGE IN SERVICER. The Note or a partial interest in the Note (together
with this Instrument and the other Loan Documents) may be sold one or more times without prior
notice to Borrower. A sale may result in a change of the Loan Servicer. There also may be one or
more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the
Loan Servicer, Borrower will be given notice of the change.

     33. SINGLE ASSET BORROWER. Until the Indebtedness is paid in full, Borrower (a) shall not
acquire any real or personal property other than the Mortgaged Property and personal property
related to the operation and maintenance of the Mortgaged Property; (b) shall not operate any
business other than the management and operation of the Mortgaged Property; and (c) shall not
maintain its assets in a way difficult to segregate and identify.

     34. SUCCESSORS AND ASSIGNS BOUND. This Instrument shall bind, and the rights granted by this
Instrument shall inure to, the respective successors and assigns of Lender and Borrower. However,
a Transfer not permitted by Section 21 shall be an Event of Default.

     35. JOINT AND SEVERAL LIABILITY. If more than one person or entity signs this Instrument as
Borrower, the obligations of such persons and entities shall be joint and several.

     36. RELATIONSHIP OF PARTIES; NO THIRD PARTY BENEFICIARY.

     (a) The relationship between Lender and Borrower shall be solely that of creditor and debtor,
respectively, and nothing contained in this Instrument shall create any other relationship between
Lender and Borrower.

     (b) No creditor of any party to this Instrument and no other person shall be a third party
beneficiary of this Instrument or any other Loan Document. Without limiting the generality of the
preceding sentence, (1) any arrangement (a “Servicing Arrangement”)

							
	 	 	 	 	 	 	 
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between the Lender and any Loan Servicer for loss sharing or interim advancement of funds
shall constitute a contractual obligation of such Loan Servicer that is independent of the
obligation of Borrower for the payment of the Indebtedness, (2) Borrower shall not be a third party
beneficiary of any Servicing Arrangement, and (3) no payment by the Loan Servicer under any
Servicing Arrangement will reduce the amount of the Indebtedness.

     37. SEVERABILITY; AMENDMENTS. The invalidity or unenforceability of any provision of this
Instrument shall not affect the validity or enforceability of any other provision, and all other
provisions shall remain in full force and effect. This Instrument contains the entire agreement
among the parties as to the rights granted and the obligations assumed in this Instrument. This
Instrument may not be amended or modified except by a writing signed by the party against whom
enforcement is sought.

     38. CONSTRUCTION. The captions and headings of the sections of this Instrument are for
convenience only and shall be disregarded in construing this Instrument. Any reference in this
Instrument to an “Exhibit” or a “Section” shall, unless otherwise explicitly provided, be construed
as referring, respectively, to an Exhibit attached to this Instrument or to a Section of this
Instrument. All Exhibits attached to or referred to in this Instrument are incorporated by
reference into this Instrument. Any reference in this Instrument to a statute or regulation shall
be construed as referring to that statute or regulation as amended from time to time. Use of the
singular in this Agreement includes the plural and use of the plural includes the singular. As
used in this Instrument, the term “including” means “including, but not limited to.”

     39. LOAN SERVICING. All actions regarding the servicing of the loan evidenced by the Note,
including the collection of payments, the giving and receipt of notice, inspections of the
Property, inspections of books and records, and the granting of consents and approvals, may be
taken by the Loan Servicer unless Borrower receives notice to the contrary. If Borrower receives
conflicting notices regarding the identity of the Loan Servicer or any other subject, any such
notice from Lender shall govern.

     40. DISCLOSURE OF INFORMATION. Lender may furnish information regarding Borrower or the
Mortgaged Property to third parties with an existing or prospective interest in the servicing,
enforcement, evaluation, performance, purchase or securitization of the Indebtedness, including
trustees, master servicers, special servicers, rating agencies, and organizations maintaining
databases on the underwriting and performance of multifamily mortgage loans. Borrower irrevocably
waives any and all rights it may have under applicable law to prohibit such disclosure, including
any right of privacy.

     41. NO CHANGE IN FACTS OR CIRCUMSTANCES. All information in the application for the loan
submitted to Lender (the “Loan Application”) and in all financial statements, rent rolls, reports,
certificates and other documents submitted in connection with the Loan Application are complete and
accurate in all material respects. There has been no material adverse change in any fact or
circumstance that would make any such information incomplete or inaccurate.

     42. SUBROGATION. If, and to the extent that, the proceeds of the loan evidenced by the Note
are used to pay, satisfy or discharge any obligation of Borrower for the payment of money that is
secured by a pre-existing mortgage, deed of trust or other lien encumbering the Mortgaged Property
(a “Prior Lien”), such loan proceeds shall be deemed to have been advanced by Lender at Borrower’s
request, and Lender shall 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.

							
	 	 	 	 	 	 	 
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     43. ACCELERATION; REMEDIES. At any time during the existence of an Event of Default, Lender,
at Lender’s option, may declare the Indebtedness to be immediately due and payable without further
demand, and may institute an action of mortgage foreclosure pursuant to applicable law and proceed
to final judgment and execution thereon for the amount of the Indebtedness (as of the date of such
judgment) and may invoke any other remedies permitted by applicable law or provided in this
Instrument or in any other Loan Document. Lender shall be entitled to collect all costs and
expenses incurred in pursuing such remedies, including attorneys’ fees, costs of documentary
evidence, abstracts and title reports and the attorneys’ out of pocket expenses described in
Paragraph 11 of the Note. If Lender is the purchaser at the foreclosure sale of the Mortgaged
Property, the foreclosure sale price (Lender’s final bid) shall be applied against the
Indebtedness.

     44. PREPARATION AND FILING OF FINANCING STATEMENTS. Borrower authorizes Lender to prepare,
execute and file, on Borrower’s behalf and without Borrower’s signature, all financing statements
and continuation statements under the Uniform Commercial Code necessary or appropriate to give
notice of, or to perfect, Lender’s security interest in UCC Collateral.

     45. RELEASE. Upon payment of the Indebtedness, Lender shall release this Instrument.
Borrower shall pay Lender’s reasonable costs incurred in releasing this Instrument.

     46. WAIVER OF VALUATION AND APPRAISEMENT. Borrower waives all right of valuation and
appraisement.

     47. WAIVER OF TRIAL BY JURY. BORROWER AND LENDER EACH (A) COVENANTS AND AGREES NOT TO
ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS INSTRUMENT OR THE RELATIONSHIP
BETWEEN THE PARTIES AS BORROWER AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY
RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR
IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY
AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

     ATTACHED EXHIBITS. The following Exhibits are attached to this Instrument:

	 	 	 	 	 	 	 
	 

	 	ý	 	Exhibit A
	 	Description of the Land (required)
	 
	 	 	 	 	 	 
	 

	 	ý
	 	Exhibit B
	 	Modifications to Instrument

     IN WITNESS WHEREOF, Borrower has signed and delivered this Instrument or has caused this
Instrument to be signed and delivered by its duly authorized representative.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

							
	 	 	 	 	 	 	 
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	 	 	SUNRISE FALL CREEK ASSISTED LIVING, L.L.C., an

      Indiana limited liability company
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	Sunrise Senior Living Investments, Inc., a	 	 
	 	 	 	 	Virginia corporation, its sole member	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ James S. Pope	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	James S. Pope	 	 
	 

	 	 	 	 	 	Vice President	 	 

STATE OF VIRGINIA, Fairfax County ss:

     On this 7th day of May, 2008, before me, the undersigned, a Notary Public in and
for said County, personally appeared James S. Pope, Vice President of Sunrise Senior Living
Investments, Inc., a Virginia corporation, sole member of Sunrise Fall Creek Assisted Living,
L.L.C., an Indiana limited liability company, and acknowledged the execution of the foregoing
instrument.

     WITNESS my hand and official seal.

My Commission expires:

	 	 	 	 	 
	 

	 	/s/ Marguerite W. Capen
	 	 
	 

	 	 	 	 
	 

	 	Notary Public	 	 

							
	 	 	 	 	 	 	 
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KEY PRINCIPAL

Sunrise Senior Living, Inc.

7902 Westpark Drive

McLean, Virginia 22102

Attention: General Counsel

							
	 	 	 	 	 	 	 
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EXHIBIT
A

[DESCRIPTION OF THE LAND]

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
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EXHIBIT B

MODIFICATIONS TO INSTRUMENT

(Seniors Housing)

          The following modifications are made to the text of the Instrument that precedes this Exhibit:

     1. Section 1 of the Instrument is hereby amended to add the following paragraphs at the end
thereof:

“(aa) “Accounts” means all money, funds, investment property, accounts, general
intangibles, deposit accounts, chattel paper, documents, instruments, judgments,
claims, settlements of claims, causes of action, refunds, rebates, reimbursements,
reserves, deposits, subsidies, proceeds, products, rents and profits, now or
hereafter arising, received or receivable, from or on account of the Borrower’s
management and operation of the Mortgaged Property as a Seniors Housing Facility.”

“(bb) “Contract(s)” means any contract or other agreement for the provision of goods
or services at or otherwise in connection with the operation, use or management of
the Mortgaged Property, including cash deposited to secure performance by parties of
their obligations.”

“(cc) “Inventory” means all right, title and interest of Borrower in and to
inventory of every type and description, now owned and hereafter acquired,
including, without limitation, raw materials, work in process, finished goods, goods
returned or repossessed or stopped in transit, goods used for demonstration,
promotion, marketing or similar purposes, property in, on or with which any of the
foregoing may be stored or maintained, all materials and supplies usable or used or
consumed at the Mortgaged Property, and all documents and documents of title
relating to any of the foregoing, together with all present and future parts,
additions, accessories, attachments, accessions, replacements, replacement parts and
substitutions therefore or thereto in any form whatsoever.”

“(dd) “License(s)” means any operating licenses, certificates of occupancy, health
department licenses, food service licenses, certificates of need, business licenses,
permits, registrations, certificates, authorizations, approvals, and similar
documents required by applicable laws and regulations for the operation of the
Mortgaged Property as a Seniors Housing Facility, including replacements and
additions thereto.”

“(ee) “Operating Lease” means any master lease, operating agreement, operating lease
or similar document, preapproved by Lender, under which control of the occupancy,
use, operation, maintenance and administration of the Mortgaged Property as a
Seniors Housing Facility has been granted to any individual or entity other than the
Borrower.”

“(ff) “Operator” means any qualified and licensed (if so required by the applicable
laws of the Property Jurisdiction) individual or entity obligated under the terms of
an Operating Lease with the Borrower.”

					
	 	 	 	 	 
	Seniors Housing Modifications to Instrument
	 	Form 4075
	 	Page B-2
	 	 	 	 	 
	 
	 	05-05
	 	© 2000-2005 Fannie Mae

 

 

“(gg) “Seniors Housing Facility” means a residential housing facility which
qualifies as “housing for older persons” under the Fair Housing Amendments Act of
1988 and the Housing for Older Persons Act of 1995 comprised of assisted living
units and Alzheimer’s/dementia care units.”

“(hh) “Third Party Payments” means all payments and the rights to receive such
payments from Medicaid programs or similar federal, state or local programs, boards,
bureaus or agencies, and from residents, private insurers or others.”

     2. Section 1(g) of the Instrument is hereby amended to add the following sentence at the end
thereof:

“The term “Hazardous Materials” shall also include any medical products or devices,
including, but not limited to, those materials defined as “medical waste” or
“biological waste” under relevant statutes or regulations pertaining to any
Hazardous Materials Law.”

     3. Section 1(o) of the Instrument is hereby amended to add the following sentence at the end
thereof:

“The term “Leases” shall also include any residency, occupancy, admission and care
agreements pertaining to residents of the Mortgaged Property and any Operating
Lease.”

     4. Section 1(s) of the Instrument is hereby amended:

          A) to revise subsection (14) to read as follows:

“(14) all resident and tenant security deposits, entrance fees, application
fees, processing fees, community fees and any other amounts or fees
deposited by any resident or tenant upon execution of a Lease which have not
been forfeited by the resident or tenant; and”

and

          B) to add the following subsections (16), (17), (18) and (19) at the end thereof

“(16) all payments due, or received, from residents, second party charges
added to base rental income, base and/or additional meal sales, commercial
operations located on the Mortgaged Property or provided as a service to the
residents of the Mortgaged Property, rental from guest suites, seasonal
lease charges, furniture leases, and laundry services, and any and all other
services provided to residents in connection with the Mortgaged Property,
and any and all other personal property on the Mortgaged Property, excluding
personal property belonging to residents of the Mortgaged Property (other
than Personalty belonging to Borrower);”

“(17) subject to applicable law and regulations, all Licenses and Contracts
relating to the operation and authority to operate the Mortgaged Property as
a Seniors Housing Facility;”

 
					
	 	 	 	 	 
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“(18) all Third Party Payments arising from the operation of the Mortgaged
Property as a Seniors Housing Facility, utility deposits, unearned premiums,
accrued, accruing or to accrue under insurance policies now or hereafter
obtained by the Borrower and all proceeds of any conversion of the Mortgaged
Property or any part thereof including, without limitation, proceeds of
hazard, property, flood and title insurance and all awards and compensation
for the taking by eminent domain, condemnation or otherwise, of all or any
part of the Mortgaged Property or any easement therein;” and

“(19) all of Borrower’s Accounts and Inventory.”

     5. Section 1(v) of the Instrument is hereby amended to add the following sentence at the end
thereof:

“The term “Personalty” shall also include all personal property currently owned or
acquired by Borrower after the date hereof used in connection with the ownership and
operation of the Mortgaged Property as a Seniors Housing Facility, all kitchen or
restaurant supplies and facilities, dining room supplies and facilities, medical
supplies and facilities, leasehold improvements, or related furniture and equipment,
together with all present and future parts, additions, accessories, replacements,
attachments, accessions, replacement parts and substitutions therefor, and the
proceeds thereof (cash and non-cash including insurance proceeds) and any other
equipment, supplies or furniture owned by Borrower and leased to any third party
service provider or any Operator under any Operating Lease, use, occupancy, or lease
agreements, as well as all Licenses, to the extent permitted by applicable law and
regulations, including replacements and additions thereto.”

     6. Section 1(x) of the Instrument is hereby amended to provide as follows:

“Rents” means all rents (whether from residential or non-residential space),
revenues and other income of the Land or the Improvements, including rent paid under
any Operating Lease, subsidy payments received from any sources (including but not
limited to payments under any Housing Assistance Payments Contract), parking fees,
laundry and vending machine income and fees and charges for food, healthcare, and
other services provided at the Mortgaged Property, whether now due, past due, or to
become due, security deposits, entrance fees, application fees, processing fees,
community fees and any other amounts or fees forfeited by any resident or tenant,
together with and including all proceeds from any private insurance for residents to
cover rental charges and charges for services at or in connection with the Mortgaged
Property, and the right to Third Party Payments due for the rents or services of
residents at the Mortgaged Property. Each of the foregoing shall be considered
“Rents” for the purposes of the actions and rights set forth in Section 3 of this
Instrument.

     7. Section 3(b) of the Instrument is hereby amended to add the following sentence at the end
thereof:

“After an Event of Default, Lender is further authorized to give notice to all Third
Party Payment payors (other than governmental entities) at Lender’s option,
instructing them to pay all Third Party Payments which would be otherwise paid to

					
	 	 	 	 	 
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Borrower to Lender, to the extent permitted by law. In the case of Third Party
Payments from Third Party Payment payors which are governmental entities, including
Medicaid, Lender and Borrower have executed a Depositary Agreement of even date
herewith which establishes special procedures for the receipt and disposition of the
Third Party Payments.”

     8. Section 3(c) of the Instrument is hereby amended to add the following sentence at the end
thereof:

“In order to induce Lender to lend funds hereunder, Borrower (together with any
Operator or manager of the Mortgaged Property; provided such Operator or manager is
compensated for its services in accordance with the operating lease or management
agreement, as applicable, for the Mortgaged Property and the Loan Documents) hereby
agrees upon the occurrence of an Event of Default and at the option of Lender, that
it shall continue to provide all necessary services required under any Operating
Lease or applicable licensing or regulatory requirements and shall fully cooperate
with Lender and any receiver as may be appointed by a court, in performing these
services and agrees to arrange for an orderly transition to a replacement operator,
manager or provider of the necessary services, and to execute promptly all
applications, assignments, consents and documents requested by Lender to facilitate
such transition.”

     9. The first sentence in Section 4(b) of the Instrument is hereby amended to add the following
at the end thereof:

“, with the exception of any Operating Lease.”

     10. Section 4(e) of the Instrument is hereby amended to state as follows:

“Borrower shall, promptly upon Lender’s request, deliver to Lender an executed copy
of each residential Lease then in effect. All Leases for residential dwelling units
shall be on forms approved by Lender, shall be for initial terms of at least six
months and not more than two years, and shall not include options to purchase. Up
to five percent (5%) of the licensed beds at the Mortgaged Property may be used for
respite care. If customary in the applicable market, residential Leases with a
month-to-month term or with terms of less than six months may be permitted with
Lender’s prior written consent.”

     11. The first sentence in Section 4(f) of the Instrument is hereby amended to add the
following at the end thereof:

“with the exception of any Operating Lease which has previously been approved by
Lender.”

     12. Section 4 of the Instrument is hereby amended to add the following as Section
4(h):

“Any Operating Lease is and shall be subject and subordinate in all respects to the
liens, terms, covenants and conditions of the Instrument and the other Loan
Documents, and to all renewals, modifications, consolidations, replacements and
extensions thereof, and to all advances heretofore made or which may hereafter be
made pursuant to the Instrument (including all sums advanced for the purposes of (x)
protecting or further securing the lien of the Instrument, curing defaults by
Borrower

					
	 	 	 	 	 
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under the Loan Documents or for any other purposes expressly permitted by the
Instrument or (y) constructing, renovating, repairing, furnishing, fixturing or
equipping the Mortgaged Property.”

     13. Section 11 of the Instrument is hereby amended to add the following sentences at the end
thereof:

“Borrower acknowledges that as of the date of this Instrument, Borrower and the
Mortgaged Property are not certified to participate in the Medicaid assisted living
waiver program administered by the Property Jurisdiction (“Program”). Borrower
covenants and agrees that it will notify Lender in writing 30 days prior to
Borrower’s submission of its request to participate in the Program, and will provide
Lender with copies of all correspondence and documentation received from the
Property Jurisdiction or any authorizing entity concerning its submission. In the
event the Mortgaged Property or Borrower becomes eligible to participate in the
Program, Borrower agrees to execute then-current Fannie Mae forms of Medicaid
reserve agreement and depositary agreement as Lender may require.”

“Borrower further covenants and agrees that it shall not permit more than 20% of its
effective gross income to be derived from units relying on Medicaid payments. If by
reason of applicable law or regulation more than 20% of effective gross income
becomes derived from units relying on Medicaid payments, the Borrower shall
diligently and expeditiously take all reasonable steps necessary to bring the
Mortgaged Property into compliance with the preceding sentence to the extent
permissible by applicable law or regulation. Borrower further covenants and agrees
that it shall limit the use and occupancy of the Mortgaged Property to residents
that meet the standards for independent living or assisted living, and that it shall
not accept residents that require skilled nursing care or permit residents requiring
skilled nursing care to remain at the Mortgaged Property as a routine matter.”

     14. Section 12(a) of the Instrument is hereby amended to add the following at the end thereof:

“and, (5) payments for any required licensing fees, permits, or other expenses
related to the operation of the Mortgaged Property as a Seniors Housing Facility by
or on behalf of the Lender, any fines or penalties that may be assessed against the
Mortgaged Property, any costs incurred to bring the Mortgaged Property into full
compliance with applicable codes and regulatory requirements, and any fees or costs
related to Lender’s employment of any operator or service provider for the Mortgaged
Property.”

     15. Section 14(b) of the Instrument is hereby deleted in its entirety and replaced with the
following:

“(b) Subject to federal, state and local laws and regulations applicable to resident
and tenant privacy, including but not limited to the Health Insurance Portability
and Accountability Act (“HIPAA”) (collectively the “Privacy Laws”), Borrower shall
furnish to Lender all of the following:”

	 	“(1) 	 	 within 30 days after the end of each fiscal
quarter, a statement of income and expenses for Borrower’s or any
Operator’s operation of

					
	 	 	 	 	 
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	 	 	 	the Mortgaged Property for that quarter, a statement of changes in
financial position of Borrower relating to the Mortgaged Property for
that quarter and a balance sheet showing all assets and liabilities
of Borrower relating to the Mortgaged Property as of the end of that
quarter;”

	 	“(2) 	 	 within 90 days after the end of each twelve
consecutive month fiscal year, a statement of income and expenses for
Borrower’s or any Operator’s operation of the Mortgaged Property for
that fiscal year, prepared in accordance with generally accepted
accounting principles (“GAAP”), a statement of changes in financial
position of Borrower relating to the Mortgaged Property for that fiscal
year, and a balance sheet showing all assets and liabilities of
Borrower relating to the Mortgaged Property as of the end of that
fiscal year;”
	 
	 	“(3) 	 	 within 30 days after the end of each quarter of
Borrower, and at any other time upon Lender’s request, a rent schedule
for the Mortgaged Property showing the name of each resident and
tenant, and for each resident and tenant, the space occupied, the lease
expiration date, the rent payable for the current month, the date
through which rent has been paid, any income attributable to additional
resident services, and any related information requested by Lender;”

	 	“(4) 	 	 within 120 days after the end of each fiscal year of Borrower, and at
any other time upon Lender’s request, 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;”
	 
	 	“(5) 	 	 within 120 days after the end of each fiscal year of Borrower, and at
any other time upon Lender’s request, a statement that identifies all
owners of any interest in Borrower and the interest held by each, if
Borrower is a corporation, all officers and directors of Borrower,
and if Borrower is a limited liability company, all managers who are
not members;”
	 
	 	“(6) 	 	 upon Lender’s request, a monthly property management report for the
Mortgaged Property, showing the number of inquiries made and rental
applications received from residents or prospective residents and
deposits received from residents and any other information requested
by Lender;”
	 
	 	“(7) 	 	 if required by Lender, a statement of income and expense for the
Mortgaged Property for the prior month or quarter;”
	 
	 	“(8) 	 	 “within 10 days of Borrower’s receipt, copies
of all inspection reports, surveys, reviews, and certifications
prepared by, for, or on behalf of any licensing or regulatory authority
relating to the

					
	 	 	 	 	 
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	 	 	 	Mortgaged Property and any legal actions, orders, notices, or reports
relating to the Mortgaged Property issued by the applicable
regulatory or licensing authorities;”
	 
	 	“(9) 	 	 upon the request of Lender, copies of all
reports relating to the services and operations of the Mortgaged
Property, including, if applicable, Medicaid cost reports and records
relating to account balances due to or from Medicaid or any private
insurer; and”
	 
	 	“(10) 	 	 within 10 days of submission by Borrower,
copies of all incident reports submitted to any liability insurance
carrier, which may result in a loss of more than $25,000.00, or any
elderly affairs, regulatory or licensing authority.”

     16. Section 17(a)(5) is hereby amended to state the following:

“shall provide for professional management of the Mortgaged Property as a Seniors
Housing Facility either by Borrower, an Operator under an Operating Lease approved
by Lender in writing, or a management company engaged either by the Borrower or any
Operator under a Contract approved by Lender in writing.”

     17. Section 17(a) of the Instrument is hereby amended to add the following sentence at the end
thereof:

“Borrower further covenants and agrees that it shall maintain and operate the
Mortgaged Property as a Seniors Housing Facility at all times in accordance with the
standards required by any applicable Licenses and as required by any regulatory
authority, that it shall maintain in good standing all Licenses, and that it shall
cause to renew and extend all such required Licenses, and shall not fail to take any
action necessary to keep all such Licenses in good standing and full force and
effect. Borrower will immediately provide Lender with any notice or order of a
violation which may otherwise have an adverse impact on the Mortgaged Property, its
operations or its compliance with licensing and regulatory requirements.”

     18. Section 17 of the Instrument is hereby amended to add the following as subsection (c):

“Borrower has entered into the Contracts previously identified to Lender for the
provision of goods or services, at or otherwise in connection with the operation,
use or management of the Mortgaged Property. Borrower may in the future enter into
Contracts for the provision of additional goods or services at or otherwise in
connection with the operation, use or management of the Mortgaged Property. Until
Lender gives notice to Borrower of Lender’s exercise of its rights under this
Instrument, Borrower shall have all rights, power and authority granted to Borrower
under any Contract (except as otherwise limited by this subsection or any other
provision of this Instrument), including the right, power and authority to modify
the terms of any Contract or extend or terminate any Contract, with the exception of
any Operating Lease. Upon the occurrence of an Event of Default and at the option
of Lender, the permission given to Borrower pursuant to the preceding sentence to
exercise all rights, power and authority under Contracts shall terminate. Upon
Lender’s delivery of notice to Borrower of an Event of

					
	 	 	 	 	 
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Default, Lender shall immediately have all rights, powers and authority granted to
Borrower under any Contract, including the right, power and authority to modify the
terms of, extend or terminate any such Contract. Borrower hereby represents and
warrants and agrees with Lender that: (1) the Contracts are assignable and no
previous assignment of Borrower’s interest in the Contracts has been made; (2) the
Contracts are in full force and effect in accordance with their respective terms and
there are no defaults thereunder; (3) Borrower shall fully perform all of its
obligations under the Contracts, and Borrower agrees not to (A) assign, sell,
pledge, transfer, mortgage or otherwise encumber its interests in any of the
Contracts so long as this Instrument is in effect, or (B) consent to any transfer,
assignment or other disposition thereof without the written approval of Lender or
(C) amend or modify any Contract without the prior written approval of Lender after
an Event of Default; and (4) each Contract entered into by Borrower subsequent to
the date hereof, the average annual consideration of which, directly or indirectly,
is at least $20,000, shall provide: (i) that it shall be terminable for cause; and
(ii) that it shall be terminable, at Lender’s option, upon the occurrence of an
Event of Default.

     19. Section 18(b) of the Instrument is hereby amended to add the following sentence at the end
thereof:

“Prohibited Activities and Conditions also shall not include the safe and lawful use
and storage of medical products and devices customarily used in the operation of a
Seniors Housing Facility.”

     20. Section 19(c) is hereby amended to provide as follows:

“Borrower shall maintain or cause any Operator to maintain at all times commercial
professional liability and general liability insurance, workers’ compensation
insurance, and such other insurance as Lender may require from time to time.”

     21. Section 21(a) of the Instrument is hereby amended to add the following Sections (8) and
(9) at the end thereof:

“(8) a Transfer or change in the holder of the Licenses authorizing the Mortgaged
Property to operate as a Seniors Housing Facility; and”

“(9) a Transfer of the Borrower’s or any Operator’s respective interest(s) in any
Operating Lease.”

     22. Section 22 of the Instrument is hereby amended to add the following as Sections 22 (g),
(h), (i) and (j):

“(g) any failure by Borrower, Operator or any manager (as applicable) to comply with
the use and licensing requirements set forth in Sections 10 and 11”;

“(h) any loss by Borrower, Operator or any manager (as applicable) of any License or
other legal authority necessary to operate the Mortgaged Property as a Seniors
Housing Facility, or any failure by Borrower, Operator or any manager (as
applicable) to comply strictly with any consent order or decree or to correct,
within the time deadlines set by any federal, state or local licensing agency, any
deficiency where such failure results, or under applicable laws and regulations, is

					
	 	 	 	 	 
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reasonably likely to result, in an action by such agency with respect to the
Mortgaged Property that may have a material adverse effect on the income and
operations of the Mortgaged Property or Borrower’s interest in the Mortgaged
Property, including, without limitation, a termination, revocation or suspension of
any applicable Licenses, necessary for the operation of the Mortgaged Property as a
Seniors Housing Facility”;

“(i) if, without the consent of Lender, Borrower, Operator or any manager (as
applicable):

	 	“(i) 	 	 ceases to operate the Mortgaged Property as a
Seniors Housing Facility;”
	 
	 	“(ii) 	 	 ceases to provide such kitchens, separate
bathrooms, and areas for eating, sitting and sleeping in each
independent living or assisted living unit or at a minimum, central
bathing facilities for Alzheimer’s/dementia care, as are provided as of
the date of this Instrument;”
	 
	 	“(iii) 	 	 ceases to provide other facilities and services normally associated
with independent living or assisted living units, including, without
limitation, (A) central dining services providing up to three meals per
day, (B) periodic housekeeping, (C) laundry services, (D) customary
transportation services, and (E) social activities;”
	 
	 	“(iv) 	 	 provides or contracts for skilled nursing care
for any of the units;”
	 
	 	“(v) 	 	 leases or holds available for lease to
commercial tenants non-residential space (i.e., space other than the
units, dining areas, activity rooms, lobby, parlors, kitchen, mailroom,
marketing/management offices) exceeding ten percent (10%) of the net
rental area; or”
	 
	 	“(vi) 	 	 takes any action or permits to exist any
condition that causes the Mortgaged Property to be no longer classified
as housing for older persons pursuant to the Fair Housing Amendments
Act of 1988 and the Housing for Older Persons Act of 1995”; and

“(j) a default under any Operating Lease or under the Subordination, Assignment and
Security Agreement executed by Borrower, Operator and Lender in connection with this
Loan which continues beyond any applicable cure period, or the termination of any
Operating Lease without Lender’s prior written approval.”

          23. The former Sections 22(g), (h) and (i) are hereby amended to be Sections 22 (k), (l) and
(m), respectively and are amended to read as follows:

“(k) any failure by Borrower to perform any of its obligations under this Instrument
(other than those specified in Sections 22(a) through (j)), as and when

					
	 	 	 	 	 
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required, which continues for a period of 30 days after written notice of such
failure by Lender to Borrower, but no such notice or grace period shall apply in the
case of any such failure which could, in Lender’s judgment, absent immediate
exercise by Lender of a right or remedy under this Instrument, result in harm to
Lender, impairment of the Note or this Instrument or any other security given under
any other Loan Document;”

“(l) any failure by Borrower to perform any of its obligations as and when required
under any Loan Document other than this Instrument which continues beyond the
applicable cure period, if any, specified in that Loan Document; and”

“(m) any exercise by the holder of any other debt instrument secured by a mortgage,
deed of trust or deed to secure debt on the Mortgaged Property of a right to declare
all amounts due under that debt instrument immediately due and payable.”

     24. Section 43 of the Instrument is hereby amended to add the following sentences at the end
thereof:

“In addition to the remedies set forth herein and elsewhere in this Instrument, upon
an Event of Default Lender shall be entitled to mandate the use of a lockbox bank
account or other depositary account, to be maintained under the control and
supervision of Lender, for all income of the Mortgaged Property, including, but not
limited to, Rents, service charges, insurance payments and Third Party Payments.
Lender may, upon an Event of Default, cause the removal of Borrower, Operator or any
manager (as applicable) from any Mortgaged Property operations. Until such time as
Lender has located a replacement operator, Borrower, the acting Operator or manager
shall continue to provide all required services to maintain the Mortgaged Property
in full compliance with all licensing and regulatory requirements as a Seniors
Housing Facility. Borrower acknowledges that its failure to perform or to cause the
performance of this service shall constitute a form of waste of the Mortgaged
Property, causing irreparable harm to Lender and the Mortgaged Property, and shall
constitute sufficient cause for the appointment of a receiver.”

     25. The following new Section is added to the Instrument after the last numbered Section:

     “48. BORROWER’S REPRESENTATIONS AND WARRANTIES. In addition to any other
representations and warranties contained in this Instrument, Borrower hereby represents and
warrants to Lender as follows:”

“(a) The Mortgaged Property is duly licensed as a Residential Care Facility and is
in all respects otherwise legally authorized to operate the Mortgaged Property as a
Seniors Housing Facility, under the applicable laws of the Property Jurisdiction.”

“(b) Borrower and the Mortgaged Property (and the operation thereof) are in
compliance in all material respects with the applicable provisions of all laws,
statutes, regulations, ordinances, orders, standards, restrictions and rules of any
federal, state or local government or quasi-government body, agency, board or
authority having jurisdiction over the operation of the Mortgaged Property,
including, without limitation: (i) health care and fire safety codes; (ii) design
and construction requirements, (iii) laws regulating the handling and disposal of
medical or biological

 
					
	 	 	 	 	 
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waste; (iv) the applicable provisions of Seniors Housing Facility laws, rules,
regulations and published interpretations thereof to which the Borrower or the
Mortgaged Property is subject; (v) privacy, security and billing standards such as
those set forth in HIPAA, and (vi) all criteria established to classify the
Mortgaged Property as housing for older persons under the Fair Housing Amendments
Act of 1988 and the Housing for Older Persons Act of 1995;”

“(c) If required, Borrower has a current provider agreement under any and all
applicable federal, state and local laws for reimbursement: (a) to a Seniors Housing
Facility; or (b) for other type of care provided at such facility. There is no
decision not to renew any provider agreement related to the Mortgaged Property, nor
is there any action pending or threatened to impose alternative, interim or final
sanctions with respect to the Mortgaged Property;”

“(d) Borrower and the Mortgaged Property are not subject to any proceeding, suit or
investigation by any federal, state or local government or quasi-government body,
agency, board authority or any other administrative or investigative body which may
result in the imposition of a fine or an alternative, interim or final sanction, or
which would have a material adverse effect on Borrower or the operation of the
Mortgaged Property, or which would result in the appointment of a receiver or
manager or would result in the revocation, transfer, surrender, suspension or other
impairment of the Licenses for the Mortgaged Property to operate as a Seniors
Housing Facility;”

“(e) Upon Lender’s request and subject to Privacy Laws, copies of resident care
agreements and resident occupancy agreements shall be provided to Lender. All
resident records at the Mortgaged Property are true and correct in all material
respects;”

“(f) Neither the execution and delivery of the Note, the Instrument or the Loan
Documents, Borrower’s performance thereunder, nor the recordation of the Instrument
will adversely affect the Licenses necessary for the operation of the Mortgaged
Property as a Seniors Housing Facility in the Property Jurisdiction;”

“(g) Borrower is not a participant in any federal program whereby any federal, state
or local, government or quasi-governmental body, agency, board or other authority
may have the right to recover funds by reason of the advance of federal funds.
Borrower has received no notice, and is not aware of any violation of applicable
antitrust laws of any federal, state or local, government or quasi-government body,
agency, board or other authority; and,”

“(h) Except as otherwise specifically disclosed to the Lender in writing, in the
event any existing Operating Lease or management agreement is terminated or Lender
acquires the Mortgaged Property through foreclosure or otherwise, neither Borrower,
Lender, any subsequent operator or manager, nor any subsequent purchaser (through
foreclosure or otherwise) must obtain a certificate of need from any applicable
state health care regulatory authority or agency (other than giving such notice
required under the applicable state law or regulation) prior to applying for any
applicable License necessary for the operation of the Mortgaged Property as a
Seniors Housing Facility, provided that no service or unit complement is changed.”

          26. All capitalized terms used in this Exhibit not specifically defined herein shall have the
meanings set forth in the text of the Instrument that precedes this Exhibit.

 
					
	 	 	 	 	 
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EXHIBIT B

MODIFICATIONS TO INSTRUMENT

(Additional Modifications)

The following modifications are made to the text of the Instrument that precedes this Exhibit:

	1.	 	Section 1(s)(15) is deleted in its entirety and replaced with the following: “all goodwill
relating to any of the Mortgaged Property.”
	 
	2.	 	Section 1(v) is modified by adding after the word “specifications” and before the word “and”
the following: “but only for use with respect to the maintenance of the Improvements and not
for use in connection with the sale of the Mortgaged Property or to build other improvements”.
	 
	3.	 	The fourth sentence of Section 2 is amended to delete the period at the end thereof and to
add at the end thereof the following: “, provided Borrower may lease office equipment and
other equipment used in the normal course of business provided the total cost of such leased
equipment shall not exceed $75,000 at any one time.”
	 
	4.	 	The first sentence of Section 3(b) is amended to add the word “shall” after the phrase
“compromise Rents and” and to change the word “directs” to “direct”.
	 
	5.	 	The second sentence of Section 3(c) is amended to delete the period at the end thereof and to
add to the end thereof the following, “except community fees paid upon the initial occupancy
of the Mortgaged Property by residents thereof.”
	 
	6.	 	Section 3(d) of the Instrument is hereby amended to add the word “reasonable” between the
first occurrence of the words “its” and “discretion” in the first sentence.
	 
	7.	 	The period at the end of the first sentence of Section 4(f) is deleted and there is added at
the end thereof: “except for leases (i) with gross annual rents that do not exceed $15,000
and (ii) which cover 1,000 rentable square feet or less, copies of which are provided to
Lender simultaneously with the execution thereof, provided that the lessee and its business
and non-residential use of a portion of the Mortgaged Property are consistent with managing
senior housing and assisted living facilities as determined by Lender (“De Minimis Leases”).
	 
	8.	 	The period at the end of the second sentence of Section 4(f) is deleted and there is added at
the end thereof: “except De Minimis Leases with copies of such modifications extensions or
terminations provided to Lender simultaneously with the execution thereof.”
	 
	9.	 	Section 4(g) is modified by deleting the period at the end thereof and adding the following
“, except for community fees paid upon the initial occupancy of the Mortgaged Property by
residents thereof.”.
	 
	10.	 	Section 7 of the Instrument is hereby modified to add the following new subsection 7(f):

					
	 	 	 	 	 
	FANNIE MAE MULTIFAMILY INSTRUMENT - 

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	 	Form 4015   11/01
	 	Page B-13
	 	 	 	 	 
	 
	 	 
	 	© 1997-2001 Fannie Mae

 

 

     “(f) Conditional Waiver Of Impounds. Notwithstanding the foregoing provisions of this Section
7, Lender hereby conditionally waives the requirement of such Imposition Deposits for insurance
premiums and Taxes pursuant to Section 7(a)(2) and 7(a)(3) above; provided, that:

	 	(i)	 	Borrower provides Lender with annual proof of payment of insurance premiums and
Taxes (in the form of a paid invoice) no later than ten (10) days prior to the date
such Taxes are due or the expiration of the insurance policy, as applicable. Further,
Lender shall have the right to examine Borrower’s records relating to the payment of
Taxes, insurance and other expenses of the Property upon reasonable notice from Lender.
Lender shall have the right to retain a professional property tax service to monitor
Borrower’s payment of Taxes, and Borrower agrees to pay to Lender the cost of engaging
such tax search service firm;
	 
	 	(ii)	 	The Lender’s annual property inspections show that the Property is in good
condition;
	 
	 	(iii)	 	No change to, or replacement of, any insurance policy shall be made by
Borrower without the express written consent of Lender; provided, however, that
Borrower shall be permitted to change insurance carriers so long as the material terms
of the insurance policy remain the same, the new insurance policy complies with all
requirements of the Loan Documents, and the Lender is named as an additional insured;
	 
	 	(iv)	 	In the event of any Event of Default, whether monetary or non-monetary, the
suspension of the collection of monthly Imposition Deposits will automatically
terminate and Borrower shall, on the first day of the month following notice by Lender,
and throughout the remaining loan term resume and continue to pay Imposition Deposits;
	 
	 	(v)	 	If a Transfer of the Property occurs, Imposition Deposits will automatically
and immediately be reinstated; and
	 
	 	(vi)	 	The Lender, in its sole discretion, retains the right to reinstate monthly
Imposition Deposits at any time. In the event Lender exercises this right to reinstate
the collection of monthly Imposition Deposits, Borrower shall, on the first month
following notice by Lender, and throughout the remaining loan term resume and continue
to pay Imposition Deposits.”

	11.	 	Section 13 is modified by adding after the word “hours,” and before the word “or” in the last
line, the following: “upon reasonable notice (except when Lender determines in its sole
discretion that failure to give notice is necessary to protect the security afforded Lender by
this Instrument”.
	 
	12.	 	Section 15(c) is modified by deleting the period after the word “payable.” in the sixth line
and adding the words “upon notification thereof to Borrower.”
	 
	13.	 	Sections 18(b), 19(f) and 21(c)(4) are modified by changing the word “multifamily” to the
phrase “seniors housing facility”.

					
	 	 	 	 	 
	FANNIE MAE MULTIFAMILY INSTRUMENT -

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	 	© 1997-2001 Fannie Mae

 

 

	14.	 	The third sentence of Section 18(g) is amended by deleting the period at the end thereof and
adding to the end thereof the following, “unless such Environmental Inspections are paid for
by Borrower, in which case Lender shall make available to Borrower copies of any written
results of such Environmental Inspections provided to Lender at Borrower’s written request.”
	 
	15.	 	Section 18(k) is deleted in its entirety and restated as follows:
	 
	 	 	“Counsel selected by Borrower to defend Indemnitees shall be subject to the approval of
those Indemnitees. Notwithstanding the foregoing, any Indemnitee may, in its sole and
absolute discretion and at Borrower’s expense, engage its own attorneys and other
professionals to defend or assist it in the event any such Indemnitee determines that the
defense as conducted by Borrower is not proceeding or being conducted in a satisfactory
manner or that a conflict of interest exists between any of the parties represented by
Borrower’s counsel in such action or proceeding, and, at the option of any Indemnitee, its
attorneys shall thereafter control the resolution of claim or proceeding.”
	 
	16.	 	Section 18(m) is amended to add after the word “natural persons” the words “or entities”.
	 
	17.	 	Section 18(n)(3) is modified by adding after the word “including” and before the word “fees”
the word “reasonable”.
	 
	18.	 	Section 18(o) is modified by adding after the word “the” and before the word “fees” in the
last sentence, the word “reasonable”.
	 
	19.	 	Section 19(a) is modified by (a) adding after the word “require” in the second line, the
words “in writing”, and (b) adding after the word “requires” and before the comma in the third
sentence, the words “by written notice to Borrower”.
	 
	20.	 	Section 19(b) is modified by (a) deleting the fourth sentence and (b) deleting the last
sentence and replacing it with the following:
	 
	 	 	“At least 30 days prior to the expiration date of a policy, Borrower shall deliver to Lender
(i) with respect to property insurance, an Acord 28, version 2003/10, or other certification
acceptable to Lender, evidencing the renewal of the policy and (ii) with respect to
liability insurance, an Acord 25, or other certification acceptable to Lender, evidencing
the renewal of the policy.”
	 
	21.	 	Section 19(g) is modified by (a) adding at the end of item (2), the following: “or Borrower
deposits with the Lender funds sufficient in Lender’s sole determination to complete the
Restoration”, and (b) deleting the words “one year before” in item 4(A).
	 
	22.	 	Section 21(b) is amended by (i) deleting the word “and” at the end of subsection (b)(5), (ii)
adding “; and” at the end of subsection (b)(6) and (iii) adding the following new subsection
(b)(7):
	 
	 	 	“(7) the sale or transfer of stock in a Publicly-Held Corporation.”

					
	 	 	 	 	 
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	23.	 	Section 22(k) is amended by adding after the words “failure by Lender to Borrower,” and
before the words, “but no such notice or grace”, the words, “provided Borrower shall be
afforded such additional time as is reasonably necessary to cure such failure, not to exceed
60 days if Borrower commences to cure such failure in the initial 30 day period and proceeds
diligently and in good faith to cure the same within such additional 60 days”.
	 
	24.	 	The parenthetical appearing in Section 22(k) is amended to read as follows: “(other than
those specified in Sections 22(a) through (f) and (n) through (p))”.
	 
	25.	 	Section 22 is amended to add the following as Sections 22 (n), (o) and (p):
	 
	 	 	“(n) any failure of Key Principal to maintain on a quarterly basis cash and Cash
Equivalents of not less than $25,000,000.00. As used herein, the term “Cash Equivalents”
means

(i) securities issued or fully guaranteed or insured by the United States Government
or any agency thereof and backed by the full faith and credit of the United States
having maturities of not more than twelve (12) months from the date of acquisition;
and

(ii) certificates of deposit, time deposits, demand deposits, Eurodollar time
deposits, repurchase agreements, reverse repurchase agreements, or bankers’
acceptances, having in each case a term of not more than twelve (12) months, issued
by any commercial bank having membership in the FDIC, or by any U.S. commercial
lender (or any branch or agency of a non-U.S. bank licensed to conduct business in
the U.S.) having combined capital and surplus of not less than $100,000,000 whose
short-term securities are rated at least A-1 by Standard & Poor’s Corporation or P-1
by Moody’s Investors Service, Inc.; and

(iii) commercial paper of an issuer rated at least A-1 by Standard & Poor’s
Corporation or P-1 by Moody’s Investors Service, Inc. and in either case having a
term of not more than twelve (12) months; and

(iv) tax-exempt municipal (A) commercial paper with a minimum rating of MIG-1 or
VMIG-1 by Moody’s Investors Service, Inc. or A-1 by Standard & Poor’s Corporation
and (B) notes and bonds with a minimum rating of Aa by Moody’s Investors Service,
Inc. or AA by Standard & Poor’s Corporation.

(o) any failure of Key Principal to maintain on a quarterly basis its Net Worth so that it
is not less than $100,000,000.00. As used herein, the term “Net Worth” means, as of any
specified date, the excess of the Key Principal’s assets over the Key Principal’s
liabilities, determined in accordance with GAAP on a consolidated basis, provided that all
real property shall be valued on an undepreciated basis.

(p) any failure by Borrower to comply with the requirements of Paragraph 25(c) of the
Note.”

					
	 	 	 	 	 
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	 	Form 4015   11/01
	 	Page B-16
	 	 	 	 	 
	 
	 	 
	 	© 1997-2001 Fannie Mae

 

 

	26.	 	The last sentence of Section 40 is amended in its entirety to read as follows: “Borrower,
but not Sunrise Senior Living, Inc., a Delaware corporation, irrevocably waives any and all
rights it may have under applicable law to prohibit such disclosure, including any right of
privacy.”

					
	 	 	 	 	 
	FANNIE MAE MULTIFAMILY INSTRUMENT - 

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	 	Form 4015   11/01
	 	Page B-17
	 	 	 	 	 
	 
	 	 
	 	© 1997-2001 Fannie Mae

 

 

EXHIBIT B

MODIFICATIONS TO INSTRUMENT

(Cross-Default and Cross Collateralization)

          The following modifications are made to the text of the Instrument that precedes this Exhibit:

	 	1.	 	The following new Sections are added to the Instrument after the last numbered
Section:
	 
	 	 	 	“49. CROSS-DEFAULT AND CROSS COLLATERALIZATION.

     (a) The entity that owns a Controlling Interest in Borrower also owns a
Controlling Interest in the owner of each of the multifamily properties described on
Exhibit C to this Instrument (each, excluding Borrower, an “Owner”). All of the
properties described on Exhibit C, together with the Mortgaged Property, are
referred to herein individually and collectively as the “Owner’s Projects". Lender
has extended a loan to each Owner, each loan being secured by a Multifamily Mortgage
or Deed of Trust, Assignment of Rents and Security Agreement (a “Security
Instrument”) against one of the other Owner’s Projects.

     (b) Borrower acknowledges that Lender is unwilling to extend the loan evidenced
by the Note (the “Loan”) unless all of the Owner’s Projects will be treated as a
single project through the imposition of cross-collateralization, cross-default and
release provisions as set forth herein below.

     (c) Borrower hereby agrees and consents that as additional security to Lender,
each of the Owner’s Projects shall be subject to the lien of Lender’s Security
Instrument for each of the other of the Owner’s Projects, and that each of the
respective Owner’s Projects shall collateralize the other Owner’s Projects as
follows: all Mortgaged Property (as defined in the respective Security Instrument)
for each of the Owner’s Projects shall be considered part of the “Mortgaged
Property” under this Instrument, and shall be collateral under this Instrument and
the Loan Documents.

     (d) Borrower hereby agrees and consents that upon the occurrence of an Event of
Default under the Security Instrument securing one of the Owner’s Projects, then an
Event of Default shall exist under this Instrument with respect to the Mortgaged
Property and the other Owner’s Projects. No notice shall be required to be given to
the Borrower in connection with such Event of Default. In the event of an Event of
Default under the Security Instrument with respect to any one of the Owner’s
Projects, Lender shall have the right, in its sole and absolute discretion, to
exercise and perfect any and all rights in and under the Loan Documents with regard
to any or all of the other Owner’s Projects, including, but not limited to, an
acceleration of one or all of the Notes and the sale of one or all of the Owner’s
Projects in accordance with the terms of the respective Security Instrument. No
notice, except as may be required by the respective Security Instrument, shall be
required to be given to Borrower in connection with Lender’s exercise of any and all
of its rights after an Event of Default has occurred.

     (e) Borrower may request that Lender make a determination whether any of the
Owner’s Projects may be released from the cross-default and cross-

					
	 	 	 	 	 
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	 	© 1997-2001 Fannie Mae

 

 

collateral provisions of this Section if (i) an Owner proposes to pay off an
individual loan held by Lender and secured by one of the Owner’s Projects, or (ii)
an Owner proposes to sell one of the Owner’s Projects and have the Owner’s loan on
that project assumed by a buyer acceptable to Lender. Upon such request from
Borrower, Lender shall consent to the release of the Owner’s Project from the
cross-default and cross-collateral provisions of this Section, provided:

     (1) During the period that ends on the day immediately preceding the
third anniversary of the date of the Note, the remaining loans to Borrower
and Owners secured by the remaining Owner’s Projects that are not requested
to be released have, in the aggregate, a minimum overall 1.40 debt service
coverage, based on the remaining Owner’s Projects’ collective Net Operating
Income for the 12 months of operation immediately prior to Borrower’s
request for such release and a fixed interest rate of 5.92% per annum;

     (2) During the period that commences on the fourth anniversary of the
Note, the remaining loans to Borrower and Owners secured by the remaining
Owner’s Projects that are not requested to be released have, in the
aggregate, a minimum overall 1.45 debt service coverage, based on the
remaining Owner’s Projects’ collective Net Operating Income for the 12
months of operation immediately prior to Borrower’s request for such release
and a fixed interest rate of 5.92% per annum;

     (3) If the Owner’s loan is to be assumed by a buyer acceptable to and
approved by Lender, and the Owner’s loan is in a fixed-rate mode, the
assumed loan must also have a minimum 1.40 debt service coverage, based on
that project’s Net Operating Income for the 12 months of operation
immediately prior to Borrower’s request for such release and a fixed
interest rate of 5.92% per annum;

     (4) If the Owner’s loan is to be assumed by a buyer acceptable to and
approved by Lender, and the Owner’s loan is in a variable-rate mode, the
assumed loan must also have a minimum debt service coverage determined by
Lender at the time of the proposed assumption of such Owner’s loan;

     (5) Not more than thirty percent (30%) of the aggregate unpaid
principal balance of the remaining loans to Borrower and Owners is secured
by Owner’s Projects located in a single state; and

     (6) Not more than sixty-five percent (65%) of the aggregate unpaid
principal amount of the remaining loans to Borrower and Owners is secured by
Owner’s Projects located in the states of Indiana, Michigan and Ohio.

For purposes of (1) and (2) of this paragraph (e), “Net Operating Income” is defined
as:

     (i) the lesser of the actual rents collected for the 12 month period
(net of any concession) or 95% of the gross potential rental income for the
12 month period; plus

					
	 	 	 	 	 
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Cross-Collateralization
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	 	© 1997-2001 Fannie Mae

 

 

     (ii) the actual laundry income (coin operated machines), cable and
alarm fees, application fees, late fees and forfeited deposits for the 12
month period; less

     (iii) the greater of the actual operating expenses for the 12 month
period (including the required Replacement Reserves funding for the period)
or the operating expenses used by Lender in its final underwriting
(including Replacement Reserves), increased at the rate of 3% per annum.

     (f) Notwithstanding any provision of this Section to the contrary, Borrower
shall not be permitted to request a release of any of the Owner’s Projects from the
cross-default and cross-collateral provisions of this Section if, at the time of
such request, a default or Event of Default under any of the loans held by Lender on
any of the Owner’s Projects. No release of any of the Owner’s Projects from the
cross-default and cross-collateral provisions of this Section shall be permitted by
Lender unless Borrower has paid all costs and expenses of Lender incurred in
connection with its processing of the requested release, including, without
limitation, all title endorsement premiums, recording fees, inspection fees, and
attorney fees.”

     50. EXHIBIT C. Exhibit C is attached to this Instrument.

					
	 	 	 	 	 
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   Modification to Instrument (Multi-Project/Multi-Note)
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	 	Page B-20
	 	 	 	 	 
	 
	 	 
	 	© 1997-2001 Fannie Mae

 

 

EXHIBIT
C

OWNER’S PROJECTS

	 	 	 
	Property	 	Location
	SUNRISE OF ALBUQUERQUE

	 	Albuquerque NM
	SUNRISE OF ANN ARBOR

	 	Ann Arbor MI
	SUNRISE OF AUGUSTA

	 	Augusta GA
	SUNRISE OF COLORADO SPRINGS

	 	Colorado Springs CO
	SUNRISE OF ENGLEWOOD

	 	Englewood OH
	SUNRISE OF FAIRFAX

	 	Fairfax VA
	SUNRISE OF FALL CREEK

	 	Indianapolis IN
	SUNRISE OF FORT WAYNE

	 	Fort Wayne IN
	SUNRISE OF KENWOOD

	 	Cincinnati OH
	SUNRISE OF MONROEVILLE

	 	Monroeville PA
	SUNRISE OF OAKWOOD

	 	Dayton OH
	SUNRISE OF SOUTH CHARLOTTE

	 	Charlotte NC
	SUNRISE OF WEST HARTFORD

	 	West Hartford CT
	SUNRISE OF WILLOW LAKE

	 	Indianapolis IN
	SUNRISE OF WOOSTER

	 	Wooster OH
	VIRGINIA BEACH ESTATES

	 	Virginia Beach VA

 

 

I affirm under the penalties for perjury, that I have taken reasonable care to redact each Social
Security number in this document, unless required by law.

/s/                              

Prepared by, and after recording

return to:

David J. McPherson, Esquire

Troutman Sanders LLP

P.O. Box 1122

Richmond, Virginia 23218-1122

 

 

SCHEDULE TO EXHIBIT 10.1

     In accordance with the instructions to Item 601 of Regulation S-K, the multifamily notes for
the other 15 borrowers have been omitted. A list of properties, borrowers, property locations and
the principal amounts relating to the omitted multifamily notes is set forth below. Other terms of
the omitted multifamily notes are substantially the same as Exhibit 10.1.

	 	 	 	 	 	 	 	 	 
	Property	 	Borrower	 	Location	 	Loan Amount
	Sunrise of Albuquerque

	 	Karrington of Albuquerque Ltd.
	 	NM
	 	$	10,331,867	 
	Sunrise of Ann Arbor

	 	Sunrise Ann Arbor Assisted Living, L.L.C.
	 	MI
	 	$	11,579,505	 
	Sunrise of Augusta

	 	Sunrise Augusta Assisted Living Limited
Partnership
	 	GA
	 	$	3,680,843	 
	Sunrise of Colorado
Springs

	 	Karrington of Colorado Springs Ltd.
	 	CO
	 	$	6,425,140	 
	Sunrise of Englewood

	 	Karrington of Englewood Ltd.
	 	OH
	 	$	6,150,000	 
	Sunrise of Fairfax *

	 	Sunrise Fairfax Assisted Living, L.L.C.
	 	VA
	 	$	940,800	 
	Sunrise of Fort Wayne

	 	Sunrise Fort Wayne Assisted Living, L.L.C.
	 	IN
	 	$	5,757,000	 
	Sunrise of Kenwood

	 	Karrington of Kenwood Ltd.
	 	OH
	 	$	9,132,224	 
	Sunrise of Monroeville

	 	Sunrise Monroeville Assisted Living, L.L.C.
	 	PA
	 	$	6,875,500	 
	Sunrise of Oakwood

	 	Karrington of Oakwood Ltd. Liability Co.
	 	OH
	 	$	2,643,045	 
	Sunrise of South Charlotte

	 	Sunrise South Charlotte NC Senior Living, LLC
	 	NC
	 	$	4,847,758	 
	Virginia Beach Estates

	 	Sunrise Virginia Beach Estates, LLC
	 	VA
	 	$	6,300,000	 
	Sunrise of West Hartford

	 	Sunrise West Hartford Assisted Living, L.L.C.
	 	CT
	 	$	8,875,350	 
	Sunrise of Willow Lake

	 	Sunrise Willow Lake Assisted Living, L.L.C.
	 	IN
	 	$	7,800,000	 
	Sunrise of Wooster *

	 	Sunrise Wooster Assisted Living, L.L.C.
	 	OH
	 	$	4,800,000	 

 

* - Ground Lease Properties

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