Document:

Exhibit 10.17

 

Amended and Restated

Federal Home Loan Banks P&I Funding and Contingency Plan Agreement

 

This Amended and Restated Federal Home Loan Banks P&I Funding and Contingency Plan Agreement (“Agreement”) is entered into as of this 1st day of January, 2017 (the “Effective Date”) by and among the Office of Finance (the “OF”) and each of the Federal Home Loan Banks (“Banks”) and supersedes the Federal Home Loan Banks P&I Funding and Contingency Plan Agreement, effective as of July 20, 2006, by and among the OF and Banks.  The OF and the Banks are sometimes referred to herein individually as a “party” and collectively as the “parties.” All references in this Agreement to any of the parties to this Agreement include such party or any successor entity.

 

WHEREAS, the Banks are jointly and severally liable for the payment of consolidated obligations issued pursuant to Section 11 of the Federal Home Loan Bank Act, as amended (12 U.S.C. §1431) (“COs”); and

 

WHEREAS, the OF has the authority under 12 CFR § 1273.6(a), or any successor provision adopted by the Federal Housing Finance Agency (the “Finance Agency”), to issue and service (including making timely payments on principal and interest due) consolidated obligations issued on behalf of the Banks pursuant to, and in accordance with, the policies and procedures established by the OF Board of Directors; and

 

WHEREAS, the OF and the Banks have developed P&I Funding and Contingency Plan Procedures (as the same may be amended, modified, or supplemented, the “Procedures”) to deal with the possibility that a Bank may not make a payment of debt service on COs to the OF on a timely basis; and

 

WHEREAS, the OF Board of Directors has approved the Procedures and determined that the OF should obtain the written agreement of the Banks on several matters relating to the Procedures, which matters are included in this Agreement; and

 

WHEREAS, the Federal Housing Finance Board (“Finance Board,” predecessor to the Finance Agency), supported the initial adoption of the OF’s and the Bank’s Procedures to deal with the possibility that a Bank may not make a payment of debt service on COs to the OF on a timely basis by issuing the waiver attached hereto as Exhibit A  of its prohibition of the direct placement of COs with Banks  (contained in former 12 CFR § 966.8(c), and superseded by 12 CFR § 1270.9, which prohibits COs from being purchased by any Bank as part of an initial issuance whether purchased directly from the OF or indirectly through an underwriter) to accommodate the implementation of the such Procedures, based in part on its view that timely payment of all principal and interest to investors in COs is essential to maintain the confidence of investors and potential investors in COs; and

 

WHEREAS, the Waiver provides that the interest rate paid by the Bank that has not remitted all the funds to the OF by the agreed upon deadline on the CO issued pursuant to the Waiver shall be at least 500 basis points above the federal funds rate.

 

 

NOW THEREFORE, in consideration of the mutual promises set forth herein and other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge, the parties hereby agree as follows:

 

1.              Authorization of Issuance of COs

 

Each Bank agrees that if it is a “Delinquent Bank” (as defined below), the OF may cause one or more overnight “Plan COs” (as defined below) to be issued on behalf of the Delinquent Bank for the benefit of one or more “Contingency Banks” (as defined below), each such Plan CO to be issued to a Contingency Bank in the principal amount equal to the amount of funds provided by that Contingency Bank on behalf of that Delinquent Bank, to mature on the following Business Day (as defined below), and to bear interest on such principal amount from the date of issuance to but not including that maturity date, due and payable on that maturity date, at the rate per annum (the “Base Cost”) equal to (a) the overnight fed funds quote obtained by the OF from a recognized funds broker to be paid for any available funds delivered to the OF by a Contingency Bank or withheld from its “positive net position” as described in Section 2 of this Agreement or (b) the actual cost if funds are purchased by that Contingency Bank in the open market and delivered to the OF.  All such interest shall be calculated on an actual/360 basis based on the number of days the Plan CO is outstanding, including non-Business Days.  The Delinquent Bank shall also be obligated to pay “Additional Interest” as set forth in Section 3 of this Agreement, all or a portion of which will satisfy the obligation of the Delinquent Bank under the Waiver to pay an interest rate on the Plan CO that is at least 500 basis points above the federal funds rate.

 

The OF shall issue a Plan CO in physical form under those circumstances and apply the proceeds therefrom on behalf of that Delinquent Bank as provided for in the Procedures.  Each Bank hereby authorizes the OF, and the OF hereby agrees, to hold any Plan COs issued as agent for each such Bank when it acts as a Contingency Bank.

 

For purposes of this Agreement,

 

a “Delinquent Bank” means a Bank that misses any funding time specified in the Procedures, including a funding time for the repayment of Plan COs; and

 

a “Plan CO” means a CO issued on behalf of a Delinquent Bank to one or more Contingency Banks.  For the avoidance of doubt, although a Delinquent Bank is primarily responsible for repayment of a Plan CO issued on its behalf, each Plan CO is the joint and several obligation of all of the Banks; and

 

a “Contingency Bank” means any Bank that provides funds for a Delinquent Bank under the Procedures; and

 

“Business Day” means any day other than (i) a Saturday, (ii) a Sunday or (iii) any day on which banking institutions in New York City are authorized or required by law or executive order to close.

 

2.              Use of Proceeds to Purchase COs

 

Each Bank shall be obligated to provide and authorizes the OF to apply any “positive net position” (i.e., the amount by which end-of-day proceeds received by a Bank from

 

2

 

sale of COs on one day exceed payments by that Bank on COs on the same day) of that Bank to the purchase of a Plan CO issued on behalf of a Delinquent Bank, thereby causing such Bank to become a Contingency Bank, based on the priority established in the matrix attached hereto as Exhibit B (“Contingency Funding Matrix”) and otherwise in accordance with the Procedures.

 

3.              Additional Interest

 

Each Bank agrees that if it is a Delinquent Bank, then it will pay an amount (“Additional Interest”) in accordance with the following schedule in addition to interest equal to the Base Cost:

 

	
1st offense
    	
 
    	
PLUS 500 basis points per annum of the delinquent amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
2nd offense
    	
 
    	
PLUS 750 basis points per annum of the delinquent   amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
3rd and subsequent offenses              PLUS 1,000 basis points per annum of the delinquent amount
    	
 
    

 

The Additional Interest will be calculated on an actual/360 basis based on the actual number of days the related Plan CO is outstanding, including non-Business Days, from the date of issuance to but excluding the stated maturity date.  For purposes of this calculation, Additional Interest attributable to a delinquent amount that is not related to the principal amount of a Plan CO (i.e., because the Delinquent Bank pays all or a portion of its delinquent amount after a deadline but before a Contingency Bank is entitled to have a Plan CO issued for its benefit on behalf of the Delinquent Bank with respect to such amount) will be assessed on that delinquent amount assuming that a Plan CO was issued with a principal amount equal to that delinquent amount and that the Plan CO would mature on the next Business Day.

 

For purposes of calculating Additional Interest, each different time deadline established under the Procedures will accrue its own separate count of the number of offenses, so that a Delinquent Bank will pay a separate amount for each such time deadline missed, and the step-up in Additional Interest for the occurrence of a particular offense will only be measured with regard to offenses that have occurred within the 36-month period ending on the date of that particular offense (the “Delinquency Measurement Period”).  For example, if a Delinquent Bank twice misses a morning deadline and once misses an afternoon deadline, all as established under the Procedures, within a Delinquency Measurement Period, then the Delinquent Bank shall have been subject to Additional Interest of 500 basis points with respect to the first morning deadline missed, Additional Interest of 750 basis points with respect to the second morning deadline missed, and Additional Interest of 500 basis points with respect to the afternoon deadline missed.

 

Each Bank agrees that (i) for each Plan CO issued, the first 100 basis points of the Additional Interest shall be assessed against the Delinquent Bank for the benefit of the Contingency Bank that purchased the Plan CO as provided in Section 1 of this Agreement, and the balance of the Additional Interest assessed against the Delinquent Bank (i.e., 400 basis points, 650 basis points, or 900 basis points) will be divided equally among the Banks (including the Contingency Banks) that are not Delinquent Banks with

 

3

 

respect to the same funding time specified in the Procedures and (ii) for Additional Interest attributable to a delinquent amount that is not related to a Plan CO, the Additional Interest will be divided equally among the Banks that are not Delinquent Banks with respect to the same funding time specified in the Procedures.   Each of the Banks and the OF agree that any Additional Interest will be allocated and paid through the monthly assessment from the OF, and that the Additional Interest is not the joint and several obligation of the Banks.

 

Notwithstanding anything in this Section 3 or Section 7(a) or (b) of this Agreement to the contrary, and subject to Sections 5(a) and (d) below, each Bank agrees that assessment of the Additional Interest shall be subject to the appellate process contained in the Procedures and that the OF shall have the authority to waive all or any portion of the Additional Interest or excuse the occurrence of any offense as provided for in the Procedures.  To the extent permitted under the Waiver, the assessment of Additional Interest shall be suspended pending completion of the appellate process.

 

4.              Reallocation of COs

 

Each Bank agrees that if a Bank is a Delinquent Bank, with respect to each Plan CO issued to a Contingency Bank on behalf of a Delinquent Bank, each Bank that is a “Reallocation Bank” (as defined below) shall immediately have the obligation to purchase that Reallocation Bank’s “Pro Rata Share” (as defined below) of such Plan CO from that Contingency Bank, with such obligation to purchase being effective immediately upon the issuance of the Plan CO , subject to the proviso in the following paragraph.

 

Each Bank agrees that if it is a Reallocation Bank, it will wire to the Contingency Bank  that holds a Plan CO an amount equal to (i) its Pro Rata Share of the principal amount of that Plan CO, plus (ii) accrued interest thereon from the date of issue of the Plan CO until its stated maturity date equal to the Base Cost, not later than 1:00 p.m., Eastern Time, on the  second Business Day following the date of issuance of that Plan CO; provided, however, that such Reallocation Bank shall not be required to wire funds to the extent that it determines in good faith such purchase will violate any rule, regulation or binding policy of the Finance Agency, and under those circumstances such Reallocation Bank shall be excused from its obligation to make such payment to the Contingency Bank, but not from its joint and several obligation, with respect to such Plan CO.  The wire shall be sent to the account identified by the Contingency Bank for that purpose, and time is of the essence with respect to the wire.  In the event there are multiple Plan COs issued on a particular date, Reallocation Banks shall not favor any Contingency Bank over any other Contingency Bank, and shall purchase its Pro Rata Shares of such Plan COs on a proportional basis.  To the extent that a Plan CO is repaid prior to the settlement of a Reallocation Bank’s obligations to purchase its Pro Rata Share, that Pro Rata Share shall be reduced proportionally by the amount so repaid.

 

Each Contingency Bank shall promptly notify the OF of its receipt of payment of the Pro Rata Share amounts from the Reallocation Banks.  Promptly following receipt of that notice and confirmation of the payment from the Reallocation Banks, the OF shall cancel such original outstanding physical Plan CO and shall reissue replacement physical Plan COs with the principal amounts representing the respective Pro Rata Shares of the Reallocation Banks that have paid for their purchase of the Plan CO, along with a Plan

 

4

 

CO representing the balance of the principal amount of the original Plan CO that is retained by the Contingency Bank.  Each such reissued Plan CO remains a “Plan CO” for purposes of this Agreement and the Procedures, but a Reallocation Bank will not be treated as the Contingency Bank with respect thereto.   Each Bank hereby authorizes the OF, and the OF hereby agrees, to hold any such reissued Plan COs payable to such Bank as agent for such Bank’s benefit, and to pay debt service on such CO to the record owner of such Plan CO as reflected on the OF’s books following reissuance.

 

For purposes of this Section,

 

a “Reallocation Bank” with respect to a Plan CO  means each Bank other than (i) any Delinquent Bank on behalf of which that Plan CO or any other Plan CO was originally  issued on the same date, and (ii) the Contingency Bank that owns that Plan CO;

 

“Pro Rata Share” of a Reallocation Bank means a fraction, the numerator of which is the total amount of outstanding COs for which the Reallocation Bank is primary obligor as of the Most Recent Measurement Date, and the denominator of which is the total amount of outstanding COs for which all Reallocation Banks and the Contingency Bank are primary obligor as of the Most Recent Measurement Date; and

 

“Most Recent Measurement Date” means the most recent month-end data calculated by the OF and available on the OF’s Debt Servicing System, which amount is not adjusted for inter-bank ownership of COs.

 

The Banks agree that the provisions of this Section 4 shall not affect the allocation of Additional Interest pursuant to the fourth paragraph of Section 3 of this Agreement, including without limitation the allocation of the first 100 basis points of Additional Interest pursuant to such paragraph to a Contingency Bank that acquired the Plan CO at original issuance.

 

One or more Contingency Banks and Reallocation Banks may agree among themselves to net their payments to each other that are due as a result of multiple Plan COs having been issued and subject to reallocation on the same date.

 

Each Bank agrees that the formula for determining the Pro Rata Shares has been agreed to by the Banks solely for the purpose of this Agreement and is not intended to represent an agreed upon allocation of risk or responsibility for any other purpose.

 

The provisions of this Section 4 shall survive any termination of this Agreement with respect to any Plan CO issued prior to such termination.

 

5.              Acknowledgements

 

Each Bank acknowledges and agrees that:

 

(a)         the Base Cost plus the Additional Interest assessed against a Delinquent Bank may not be lower than the amount required to be paid by the Delinquent Bank under the Waiver;

 

5

 

(b)         the OF shall be required to provide any notice of issuance of a Plan CO hereunder to the Finance Agency, which notice is presently required by the Waiver to be provided no later than 5:00 P.M. eastern time on the date of the issuance of the Plan CO;

 

(c)          its agreement in Section 1 of this Agreement with respect to any Plan CO issued on its behalf as a Delinquent Bank satisfies the regulatory requirement contained in 12 CFR § 1270.9(b) that provides that COs may be offered for sale only to the extent the Banks are committed to take the proceeds;

 

(d)         the appellate process referred to in the last paragraph of Section 3 of this Agreement will be subject to the terms of the Waiver;

 

(e)          no Bank will be entitled to a Plan CO in the amount of any positive net position except to the extent its end-of-day positive net position is used to purchase a Plan CO; and

 

(f)  the Additional Interest will be calculated based on the principal amount of a Plan CO, as well as any other delinquent amount paid late to the OF by the Delinquent Bank.

 

6.              Representations and Warranties of the Parties

 

As of the date of its execution and delivery of this Agreement, each party represents and warrants to the other parties that:

 

(a)           This Agreement is within such party’s powers and has been duly authorized by all necessary corporate action.

 

(b)           This Agreement has been duly executed and delivered by such party and constitutes a legal, valid and binding obligation of such party enforceable in accordance with its terms.

 

7.              Termination and Amendments

 

(a)           This Agreement will be deemed to be effective as of the Effective Date and will continue in full force until such time as (i) at least two-thirds (2/3) of the Banks agree to its termination, (ii) the Finance Agency rescinds the Finance Board’s Waiver or (iii) the Finance Agency takes any action, including without limitation modification of the Waiver, that makes compliance by the OF or the Banks with this Agreement not commercially reasonable.

 

(b)           This Agreement may be amended only in a signed writing executed and delivered by all of the Banks and the OF.  Any such amendment shall be effective as of the effective date set forth in the amendment.

 

(c)           This Agreement shall also be subject to termination at 11:59 p.m. on December 31, 2019, and at 11:59 p.m. on each third December 31 thereafter (“Expiration Time”) if at least one-third (1/3) of the Banks provide notice of their respective election to terminate to each other Bank and the OF at least one year prior to the Expiration Time.

 

6

 

Such notice shall identify with reasonable specificity the reason or reasons such Bank wishes to terminate the Agreement at the next Expiration Time.  The Banks and the OF agree to negotiate in good faith toward the resolution of the issues raised in the notices of termination with a view of reaching agreement on a new agreement at or prior to the Expiration Time.

 

8.              Successors and Assigns

 

This Agreement shall be binding upon and inure to the benefit of the successors and permitted and authorized assigns of each Bank and the OF.

 

9.              Governing Law; Severability

 

This Agreement shall be governed by the statutory and common law of the United States and, to the extent federal law incorporates or defers to state law, the laws (exclusive of the choice of law provisions) of the State of New York.  Any term or provision of this Agreement that is determined to be invalid or unenforceable shall be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement.

 

10.       Notice

 

Except for any notices of payment delivered pursuant to Section 4 of this Agreement, which shall be delivered promptly either telephonically or electronically, any notice required or permitted to be given or made under this Agreement, including a notice to effect a change in a party’s address for notice, must be in writing and addressed to the other parties at the addresses of such parties set forth beneath their signatures below, and will be deemed to be properly given or made on the earliest of (i) actual delivery, (ii) two (2) Business Days after being sent, with delivery charges paid by the sending party, by a nationally recognized commercial courier service for delivery on the next Business Day, and (iii) three (3) Business Days after being sent through the United States Postal Service, certified mail, return receipt requested, postage prepaid.

 

11.       Counterparts

 

This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same agreement.

 

12.       Entire Agreement; Conflicts

 

This Agreement constitutes the entire agreement of the parties and supersedes all prior understandings or agreements, oral or written, among the parties on the subjects addressed in this Agreement.  Nothing in this Agreement, including without limitation the right of Banks to terminate it or the right of Banks to withhold approval of an amendment, shall be construed to (i) conflict with or limit the authority of the OF to carry out its duties pursuant to law, including without limitation Finance Agency regulations; or (ii) alter the Banks’ joint and several liability on COs, including the Plan

 

7

 

COs issued hereunder.  This Agreement does not constitute “an agreement to obtain financial assistance to meet a Bank’s current obligations... due during the quarter”, a “consolidated obligation payment plan,” an “inter-Bank assistance agreement” or “a payment on any [CO] on behalf of another Bank” as these terms are used in 12 CFR § 1270.10.  If any applicable provision contained in the Procedures irreconcilably conflicts with any express provision of this Agreement, then such express provision of this Agreement shall control.

 

13.       No Third Party Rights Created

 

Nothing in this Agreement shall create or be deemed to create any rights in any third party.

 

14.       Suspension of Obligations

 

If the Finance Agency issues any order or enters into or amends any written agreement, that prohibits or prevents a party to this Agreement from either being a party to this Agreement, or from performing its obligations under this Agreement, after the Effective Date, then that party’s duty to perform its obligations under this Agreement shall be suspended while such order by or agreement with the Finance Agency is in effect.

 

[Signature Pages to Follow]

 

8

 

IN WITNESS WHEREOF, this Agreement has been executed, on the date(s) set forth below, as of the day and year first above written.

 

	
Federal Home Loan Bank   of Atlanta
    	
 
    	
Federal Home Loan Bank   of Boston
    
	
 
    	
 
    	
 
    
	
President:   
    	
/s/ Wesley McMullan
    	
 
    	
President: 
    	
/s/ Edward A. Hjerpe   III
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
January 12, 2017
    	
 
    	
Date:
    	
December 22, 2016
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address for notice:
    	
 
    	
Address for notice:
    
	
 
    	
 
    	
 
    
	
1475 Peachtree Street   NE
    	
 
    	
800 Boylston Street
    
	
 
    	
 
    	
 
    
	
Atlanta, GA 30309
    	
 
    	
Boston, MA 02199
    
	
 
    	
 
    	
 
    
	
Federal Home Loan Bank   of Chicago
    	
 
    	
Federal Home Loan Bank   of Cincinnati
    
	
 
    	
 
    	
 
    
	
President:
    	
/s/ Matthew R. Feldman
    	
 
    	
President: 
    	
/s/ Andrew S. Howell
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
December 23, 2016
    	
 
    	
Date: 
    	
December 15, 2016
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address for notice:
    	
 
    	
Address for notice:
    
	
 
    	
 
    	
 
    
	
200 E. Randolph Drive
    	
 
    	
221 East Fourth Street
    
	
 
    	
 
    	
 
    
	
18th Floor
    	
 
    	
Suite 600
    
	
 
    	
 
    	
 
    
	
Chicago, IL 60601
    	
 
    	
Cincinnati, OH 45202
    
	
 
    	
 
    	
 
    
	
Federal Home Loan Bank   of Dallas
    	
 
    	
Federal Home Loan Bank   of Des Moines
    
	
 
    	
 
    	
 
    
	
President:   
    	
/s/ Sanjay K. Bhasin
    	
 
    	
President: 
    	
/s/ Michael L. Wilson
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
December 30, 2016
    	
 
    	
Date: 
    	
January 20, 2017
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address for notice:
    	
 
    	
Address for notice:
    
	
 
    	
 
    	
 
    
	
8500 Freeport Parkway   South, Suite 100
    	
 
    	
801 Walnut Street
    
	
 
    	
 
    	
 
    
	
Irving, TX 75063
    	
 
    	
Suite 200
    
	
 
    	
 
    	
 
    
	
Attn: General Counsel
    	
 
    	
Des Moines, IA   50309
    
	
 
    	
 
    	
 
    	
 
    
	
Federal Home Loan Bank   of Indianapolis
    	
 
    	
Federal Home Loan Bank   of New York
    
	
 
    	
 
    	
 
    
	
President: 
    	
/s/ Cindy L. Konich
    	
 
    	
President: 
    	
/s/ José R. González
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
January 4, 2017
    	
 
    	
Date: 
    	
December 27, 2016
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address for notice:
    	
 
    	
Address for notice:
    
	
 
    	
 
    	
 
    
	
8250 Woodfield Crossing   Boulevard
    	
 
    	
101 Park Avenue
    
	
 
    	
 
    	
 
    
	
Indianapolis, IN   46240
    	
 
    	
New York, NY 10178
    
											

 

9

 

	
Federal Home Loan Bank   of Pittsburgh
    	
 
    	
Federal Home Loan Bank   of San Francisco
    
	
 
    	
 
    	
 
    
	
President:   
    	
/s/ Winthrop Watson
    	
 
    	
President: 
    	
/s/ Greg Seibly
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
January 3, 2017
    	
 
    	
Date: 
    	
December 22, 2016
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address for notice:
    	
 
    	
Address for notice:
    
	
 
    	
 
    	
 
    
	
601 Grant Street
    	
 
    	
600 California Street
    
	
 
    	
 
    	
 
    
	
Pittsburgh, PA 15219
    	
 
    	
Suite 300
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
San Francisco, CA 94108
    
	
 
    	
 
    	
 
    
	
Federal Home Loan Bank   of Topeka
    	
 
    	
Office of Finance
    
	
 
    	
 
    	
 
    
	
President:
    	
/s/ Mark E. Yardley
    	
 
    	
Chief Executive   Officer:
    	
/s/ John Fisk
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
January 9, 2017
    	
 
    	
Date:
    	
 January 3, 2017
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address for notice:
    	
 
    	
Address for notice:
    
	
 
    	
 
    	
 
    
	
One Security Benefit   Place, Suite 100
    	
 
    	
1818 Library Street
    
	
 
    	
 
    	
 
    
	
Topeka, KS 66606-2444
    	
 
    	
Suite 200
    
	
 
    	
 
    	
 
    
	
Attn: General Counsel
    	
 
    	
Reston, VA 20190
    
									

 

10

 

EXHIBIT A

 

WAIVER

 

11

 

	

    	
Number:

Date:
    	
2005-22

December 14, 2005
    

 

FEDERAL HOUSING FINANCE BOARD

 

Waiver Concerning the Direct Placement of Consolidated Obligations

 

WHEREAS, section 2A of the Federal Home Loan Bank Act (12 U.S.C. § 1422a(a)(3)) requires the Federal Housing Finance Board (Finance Board) to ensure that  the  Federal  Home  Loan Banks (Banks) remain adequately capitalized and able to raise funds in the capital markets to the extent consistent with ensuring the safe and sound operation of the Banks;

 

WHEREAS, timely payment of all principal and interest to investors in consolidated obligations (COs) is essential to maintain the confidence of investors and potential investors in COs;

 

WHEREAS, the Federal Reserve Bank of New York will implement procedures that will prevent a Bank or any other government sponsored enterprise from incurring an overdraft in the accounts at the Federal Reserve Bank of New York used to pay the principal and interest due  on securities;

 

WHEREAS, the Banks Office of Finance (OF) serves as agent for each Bank in remitting to the Federal Reserve Bank of New York all funds due for principal and interest payments on COs;

 

WHEREAS, under 12 C.F.R. §§ 907.2 and 907.6, any party may request a waiver of a provision, restriction, or requirement of the Finance Board regulations not otherwise required by law if such waiver is not inconsistent with the law, does not adversely affect any substantial existing rights and the Finance Board finds that application of the restriction would adversely effect achievement of the purposes of the Bank Act, or upon a showing of good cause;

 

WHEREAS, on October 18, 2005, the OF submitted to the Finance Board a request to waive the prohibition on direct placement of COs in 12 C.F.R. § 966.8(c) when a Bank has not provided to the OF by the agreed upon deadline all funds for principal and interest payments due that day on COs, or portions of COs, for which that Bank is the primary obligor; and

 

WHEREAS, Finance Board staff has reviewed the waiver request and determined that it is consistent with the Bank Act, for good cause, and raises no legal or safety and soundness concerns if the waiver is granted pursuant to the terms of this resolution.

 

NOW, THEREFORE, IT IS RESOLVED that effective July 1, 2006, the Board of Directors hereby waives 12 C.F.R. § 966.8(c) when direct placement of COs is necessary to assure that the Federal Reserve Bank of New York has sufficient funds to timely pay all principal and interest due that day on COs or portions of COs;

 

12

 

Resolution Number 2005-22

Page 2 of 2

 

IT IS FURTHER  RESOLVED that the OF must notify the Office of Supervision no later than 5:00 pm, eastern time, on any day it directly places a CO pursuant to this waiver; and

 

IT IS FURTHER RESOLVED that the interest rate paid by the Bank that has not remitted all the funds to the OF by the agreed upon deadline on the CO issued pursuant to this waiver shall be at least 500 basis points above the federal funds rate.

 

	
 
    	
By the Board of   Directors
    
	
 
    	
of the Federal Housing   Finance Board
    
	
 
    	
 
    
	
 
    	
/s/   Ronald A. Rosenfeld
    
	
 
    	
Ronald A. Rosenfeld 
    
	
 
    	
Chairman
    

 

 

EXHIBIT B

 

Contingency Funding Matrix1

 

	
Year
    	
 
    	
January
    	
 
    	
February
    	
 
    	
March
    	
 
    	
April
    	
 
    	
May
    	
 
    	
June
    	
 
    	
July
    	
 
    	
August
    	
 
    	
September
    	
 
    	
October
    	
 
    	
November
    	
 
    	
December
    
	
2017
    	
 
    	
BOST
    	
 
    	
NWYK
    	
 
    	
PITT
    	
 
    	
ATLA
    	
 
    	
CINC
    	
 
    	
INDP
    	
 
    	
CHIC
    	
 
    	
DSMN
    	
 
    	
DALL
    	
 
    	
TPKA
    	
 
    	
SNFR
    	
 
    	
BOST
    
	
2018
    	
 
    	
NWYK
    	
 
    	
PITT
    	
 
    	
ATLA
    	
 
    	
CINC
    	
 
    	
INDP
    	
 
    	
CHIC
    	
 
    	
DSMN
    	
 
    	
DALL
    	
 
    	
TPKA
    	
 
    	
SNFR
    	
 
    	
BOST
    	
 
    	
NWYK
    
	
2019
    	
 
    	
PITT
    	
 
    	
ATLA
    	
 
    	
CINC
    	
 
    	
INDP
    	
 
    	
CHIC
    	
 
    	
DSMN
    	
 
    	
DALL
    	
 
    	
TPKA
    	
 
    	
SNFR
    	
 
    	
BOST
    	
 
    	
NWYK
    	
 
    	
PITT
    
	
2020
    	
 
    	
ATLA
    	
 
    	
CINC
    	
 
    	
INDP
    	
 
    	
CHIC
    	
 
    	
DSMN
    	
 
    	
DALL
    	
 
    	
TPKA
    	
 
    	
SNFR
    	
 
    	
BOST
    	
 
    	
NWYK
    	
 
    	
PITT
    	
 
    	
ATLA
    
	
2021
    	
 
    	
CINC
    	
 
    	
INDP
    	
 
    	
CHIC
    	
 
    	
DSMN
    	
 
    	
DALL
    	
 
    	
TPKA
    	
 
    	
SNFR
    	
 
    	
BOST
    	
 
    	
NWYK
    	
 
    	
PITT
    	
 
    	
ATLA
    	
 
    	
CINC
    
	
2022
    	
 
    	
INDP
    	
 
    	
CHIC
    	
 
    	
DSMN
    	
 
    	
DALL
    	
 
    	
TPKA
    	
 
    	
SNFR
    	
 
    	
BOST
    	
 
    	
NWYK
    	
 
    	
PITT
    	
 
    	
ATLA
    	
 
    	
CINC
    	
 
    	
INDP
    
	
2023
    	
 
    	
CHIC
    	
 
    	
DSMN
    	
 
    	
DALL
    	
 
    	
TPKA
    	
 
    	
SNFR
    	
 
    	
BOST
    	
 
    	
NWYK
    	
 
    	
PITT
    	
 
    	
ATLA
    	
 
    	
CINC
    	
 
    	
INDP
    	
 
    	
CHIC
    
	
2024
    	
 
    	
DSMN
    	
 
    	
DALL
    	
 
    	
TPKA
    	
 
    	
SNFR
    	
 
    	
BOST
    	
 
    	
NWYK
    	
 
    	
PITT
    	
 
    	
ATLA
    	
 
    	
CINC
    	
 
    	
INDP
    	
 
    	
CHIC
    	
 
    	
DSMN
    
	
2025
    	
 
    	
DALL
    	
 
    	
TPKA
    	
 
    	
SNFR
    	
 
    	
BOST
    	
 
    	
NWYK
    	
 
    	
PITT
    	
 
    	
ATLA
    	
 
    	
CINC
    	
 
    	
INDP
    	
 
    	
CHIC
    	
 
    	
DSMN
    	
 
    	
DALL
    
	
2026
    	
 
    	
TPKA
    	
 
    	
SNFR
    	
 
    	
BOST
    	
 
    	
NWYK
    	
 
    	
PITT
    	
 
    	
ATLA
    	
 
    	
CINC
    	
 
    	
INDP
    	
 
    	
CHIC
    	
 
    	
DSMN
    	
 
    	
DALL
    	
 
    	
TPKA
    
	
2027
    	
 
    	
SNFR
    	
 
    	
BOST
    	
 
    	
NWYK
    	
 
    	
PITT
    	
 
    	
ATLA
    	
 
    	
CINC
    	
 
    	
INDP
    	
 
    	
CHIC
    	
 
    	
DSMN
    	
 
    	
DALL
    	
 
    	
TPKA
    	
 
    	
SNFR
    

 

1  The primary Contingency Bank shall be determined on a rotating basis each month beginning January 2017 with the initial order and priority set forth above (e.g., Boston shall be the Contingency Bank in January 2017, unless at that time Boston were the Delinquent Bank, in which case New York would become the Contingency Bank, and if New York were also a Delinquent Bank, Pittsburgh would become the Contingency Bank, etc.).  The primary Contingency Bank will be responsible for funding any Delinquent Bank’(s) P&I obligations during the month for which it is the designated Contingency Bank, and on the first day of the following month the order and priority will rotate, so that the then current primary Contingency Bank will move to the last position, the current secondary Contingency Bank will move to the primary position, the current tertiary Contingency Bank will move to the secondary position, etc.  Following 2027, the Primary Contingency Bank rotation will begin again at the top of the table with the row for 2017 being applicable for 2028, 2018 being applicable for 2029 and 2019 being applicable for 2030, and so on.EX-10.1

 Exhibit 10.1 

AMENDED AND RESTATED ADVISORY AGREEMENT 

AMONG 
 BLACKSTONE REAL
ESTATE INCOME TRUST, INC., 
 BREIT OPERATING PARTNERSHIP, L.P., 

AND 
 BX REIT ADVISORS
L.L.C. 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 1.
	 	Definitions	  	 	3	 
	 2.
	 	Appointment	  	 	6	 
	 3.
	 	Duties of the Adviser	  	 	6	 
	 4.
	 	Authority of Adviser	  	 	8	 
	 5.
	 	Bank Accounts	  	 	9	 
	 6.
	 	Records; Access	  	 	9	 
	 7.
	 	Limitations on Activities	  	 	9	 
	 8.
	 	Other Activities of the Adviser	  	 	10	 
	 9.
	 	Relationship with Directors and Officers	  	 	11	 
	 10.
	 	Management Fee	  	 	12	 
	 11.
	 	Expenses	  	 	12	 
	 12.
	 	Other Services	  	 	14	 
	 13.
	 	Reimbursement to the Adviser	  	 	14	 
	 14.
	 	No Joint Venture	  	 	15	 
	 15.
	 	Term of Agreement	  	 	15	 
	 16.
	 	Termination by the Parties	  	 	15	 
	 17.
	 	Assignment to an Affiliate	  	 	15	 
	 18.
	 	Payments to and Duties of Adviser Upon Termination	  	 	15	 
	 19.
	 	Indemnification by the Company and the Operating Partnership	  	 	16	 
	 20.
	 	Indemnification by Adviser	  	 	16	 
	 21.
	 	Non-Solicitation	  	 	16	 
	 22.
	 	Miscellaneous	  	 	16	 
	 23.  
	 	Initial Investment	  	 	18	 

  
 ii 

 ADVISORY AGREEMENT 

THIS AMENDED AND RESTATED ADVISORY AGREEMENT (this “Agreement”), dated as of the 21st day of March, 2017, is by and
among Blackstone Real Estate Income Trust, Inc., a Maryland corporation (the “Company”), BREIT Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”), and BX REIT Advisors L.L.C.,
a Delaware limited liability company (the “Adviser”). This Agreement amends and restates the Advisory Agreement dated August 31, 2017, and effective as of the date the Registration Statement (as defined below) was declared
effective by the Securities and Exchange Commission (the “Effective Date”). Capitalized terms used herein shall have the meanings ascribed to them in Section 1 below. 

W I T N E S S E T H 

WHEREAS, the Company intends to qualify as a REIT, and to invest its funds in investments permitted by the terms of Sections 856 through
860 of the Code; 
 WHEREAS, the Company is the general partner of the Operating Partnership and intends to conduct all of its business and
make all or substantially all Investments through the Operating Partnership; 
 WHEREAS, the Company and the Operating Partnership desire to
avail themselves of the knowledge, experience, sources of information, advice, assistance and certain facilities available to the Adviser and to have the Adviser undertake the duties and responsibilities hereinafter set forth, on behalf of, and
subject to the supervision of, the Board, all as provided herein; and 
 WHEREAS, the Adviser is willing to undertake to render such
services, subject to the supervision of the Board, on the terms and conditions hereinafter set forth. 
 NOW, THEREFORE, in consideration of
the foregoing and of the mutual covenants and agreements contained herein, the parties agree as follows: 
 1. DEFINITIONS. As
used in this Agreement, the following terms have the definitions hereinafter indicated: 
 “Acquisition
Expenses” shall have the meaning set forth in the Charter. 
 “Adviser” shall mean BX REIT
Advisors L.L.C., a Delaware limited liability company. 
 “Adviser Expenses” shall have the meaning set forth in
Section 12(b). 
 “Affiliate” shall have the meaning set forth in the Charter. 

“Average Invested Assets” shall have the meaning set forth in the Charter. 

“Blackstone” means, collectively, The Blackstone Group L.P., a Delaware limited partnership, and any Affiliate
thereof. 
 “Board” shall mean the board of directors of the Company, as of any particular time. 

“Business Day” shall have the meaning set forth in the Charter. 

“Bylaws” shall mean the bylaws of the Company, as amended from time to time. 

  
 3 

 “Cause” shall mean, with respect to the termination of this
Agreement, fraud, criminal conduct, willful misconduct or willful or negligent breach of fiduciary duty by the Adviser in connection with performing its duties hereunder. 

“CEA” shall mean the U.S. Commodities Exchange Act, as amended. 

“Change of Control” shall mean any event (including, without limitation, issue, transfer or other disposition of
shares of capital stock of the Company or equity interests in the Operating Partnership, merger, share exchange or consolidation) after which any “person” (as that term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934, as amended) is or becomes the “beneficial owner” (as defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Company or the
Operating Partnership representing greater than 50% or more of the combined voting power of Company’s or the Operating Partnership’s then outstanding securities, respectively; provided, that, a Change of Control shall not be deemed to
occur as a result of any widely distributed public offering of the Shares. 
 “Charter ” shall mean the Articles of
Incorporation of the Company filed with the Maryland State Department of Assessments and Taxation in accordance with the Maryland General Corporation Law, as amended from time to time. 

“Class D Common Shares” shall have the meaning set forth in the Charter. 

“Class I Common Shares” shall have the meaning set forth in the Charter. 

“Class S Common Shares” shall have the meaning set forth in the Charter. 

“Class T Common Shares” shall have the meaning set forth in the Charter. 

“Class D NAV per Share” shall have the meaning set forth in the Charter. 

“Class I NAV per Share” shall have the meaning set forth in the Charter. 

“Class S NAV per Share” shall have the meaning set forth in the Charter. 

“Class T NAV per Share” shall have the meaning set forth in the Charter. 

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

“Commencement Date” shall mean the date on which the Company breaks escrow for its initial Offering. 

“Company” shall have the meaning set forth in the preamble of this Agreement. 

“Director ” shall mean a member of the Board. 

“Distributions” shall have the meaning set forth in the Charter. 

“Effective Date” shall have the meaning set forth in the preamble of this Agreement. 

“Excess Amount” shall have the meaning set forth in Section 14. 

“Exchange Act” shall have the meaning set forth in the Charter. 

“Expense Year” shall have the meaning set forth in Section 14. 

  
 4 

 “GAAP” shall mean generally accepted accounting principles as in
effect in the United States of America from time to time. 
 “ Gross Proceeds” shall mean the aggregate
purchase price of all Shares sold for the account of the Company through an Offering, without deduction for Selling Commissions. The purchase price of any Class T Common Share or Class S Common Share shall be deemed to be the full, non-discounted offering price at the time of purchase of each such Class T Common Share or Class S Common Share. 

“Independent Appraiser” shall have the meaning set forth in the Charter. 

“Independent Director” shall have the meaning set forth in the Charter. 

“Initial Investment” shall have the meaning set forth in Section 24. 

“Investment Company Act” shall mean the Investment Company Act of 1940, as amended. 

“Investment Guidelines” shall mean the investment guidelines adopted by the Board, as amended from time to time,
pursuant to which the Adviser has discretion to acquire and dispose of Investments for the Company without the prior approval of the Board. 

“Investments” shall mean any investments by the Company or the Operating Partnership, directly or indirectly, in
Real Property, Real Estate-Related Assets or other assets. 
 “Joint Ventures” shall have the meaning set forth
in the Charter. 
 “Management Fee” shall have the meaning set forth in Section 10(a). 

“Mortgage” shall have the meaning set forth in the Charter. 

“NASAA REIT Guidelines” shall have the meaning set forth in the Charter. 

“NAV” shall mean the Company’s net asset value, calculated pursuant to the Valuation Guidelines. 

“Net Income” shall have the meaning set forth in the Charter. 

“Offering” shall have the meaning set forth in the Charter. 

“Operating Partnership” shall have the meaning set forth in the preamble of this Agreement. 

“Operating Partnership Agreement” shall mean the Limited Partnership Agreement of the Operating Partnership, as
amended from time to time. 
 “Organization and Offering Expenses” shall have the meaning set forth in the
Charter. 
 “Other Blackstone Accounts” shall mean investment funds, REITs, vehicles, accounts, products and/or
other similar arrangements sponsored, advised and/or managed by Blackstone, whether currently in existence or subsequently established (in each case, including any related successor funds, alternative vehicles, supplemental capital vehicles, surge
funds, over-flow funds, co-investment vehicles and other entities formed in connection with Blackstone side-by-side or additional
general partner investments with respect thereto). 
 “Person ” shall mean an individual, corporation, business
trust, estate, trust, partnership, joint venture, limited liability company or other legal entity. 

  
 5 

 “Prospectus” shall have the meaning set forth in the Charter. 

“Real Estate-Related Securities” shall have the meaning set forth in the Charter. 

“Real Estate-Related Assets” shall mean any investments by the Company or the Operating Partnership in Mortgages
and Real Estate-Related Securities. 
 “Real Property” shall have the meaning set forth in the Charter. 

“Registration Statement” shall mean the registration statement on Form
S-11, as may be amended from time to time, of the Company filed with the Securities and Exchange Commission related to the registration of the Shares for the Company’s initial Offering. 

“REIT” shall have the meaning set forth in the Charter. 

“Securities Act” shall have the meaning set forth in the Charter. 

“Select Opportunistic Blackstone Accounts” shall mean Other Blackstone Accounts that invest in
“opportunistic” real estate and real estate-related assets globally that receive priority over the Company with respect to investments. 

“Selling Commissions” shall have the meaning set forth in the Charter. 

“Services” shall have the meaning set forth in Section 8(c). 

“Shares” shall have the meaning set forth in the Charter. 

“Stockholder Servicing Fee” shall have the meaning set forth in the Charter. 

“Stockholders” shall have the meaning set forth in the Charter. 

“Termination Date” shall mean the date of termination of this Agreement or expiration of this Agreement in the
event this Agreement is not renewed for an additional term. 
 “Total Operating Expenses” shall have the
meaning set forth in the Charter. 
 “Treasury Regulations” shall mean the Procedures and Administration Regulation
promulgated by the U.S. Department of Treasury under the Code, as amended. 
 “2%/25% Guidelines” shall have
the meaning set forth in the Charter. 
 “Valuation Guidelines” shall mean the valuation guidelines adopted by
the Board, as amended from time to time. 
 2. APPOINTMENT. The Company and the Operating Partnership hereby appoint the
Adviser to serve as their investment adviser on the terms and conditions set forth in this Agreement, and the Adviser hereby accepts such appointment. By accepting such appointment, the Adviser acknowledges that it has a contractual and fiduciary
responsibility to the Company and the Stockholders. Except as otherwise provided in this Agreement, the Adviser hereby agrees to use its commercially reasonable efforts to perform the duties set forth herein, provided that the Company reimburses the
Adviser for costs and expenses in accordance with Section 12 hereof. 
 3. DUTIES OF THE ADVISER. Subject to the oversight
of the Board and the terms and conditions of this Agreement (including the Investment Guidelines) and consistent with the provisions of the Company’s most 

  
 6 

 
recent Prospectus for the Shares, the Charter and Bylaws and the Operating Partnership Agreement, the Adviser will have plenary authority with respect to the management of the business and
affairs of the Company and the Operating Partnership and will be responsible for implementing the investment strategy of the Company and the Operating Partnership. The Adviser will perform (or cause to be performed through one or more of its
Affiliates or third parties) such services and activities relating to the selection of investments and rendering investment advice to the Company and the Operating Partnership as may be appropriate or otherwise mutually agreed from time to time,
which may include, without limitation: 
 (a) serving as an advisor to the Company and the Operating Partnership with respect to the
establishment and periodic review of the Investment Guidelines for the Company’s and the Operating Partnership’s investments, financing activities and operations; 

(b) sourcing, evaluating and monitoring the Company’s and Operating Partnership’s investment opportunities and executing the
acquisition, management, financing and disposition of the Company’s and Operating Partnership’s assets, in accordance with the Company’s Investment Guidelines, policies and objectives and limitations, subject to oversight by the
Board; 
 (c) with respect to prospective acquisitions, purchases, sales, exchanges or other dispositions of Investments, conducting
negotiations on the Company’s and Operating Partnership’s behalf with sellers, purchasers, and other counterparties and, if applicable, their respective agents, advisors and representatives, and determining the structure and terms of such
transactions; 
 (d) providing the Company with portfolio management and other related services; 

(e) serving as the Company’s advisor with respect to decisions regarding any of the Company’s financings, hedging activities or
borrowings undertaken by the Company, including (1) assisting the Company in developing criteria for debt and equity financing that is specifically tailored to the Company’s investment objectives, and (2) advising the Company with
respect to obtaining appropriate financing for the Investments (which, in accordance with applicable law and the terms and conditions of this Agreement and the Company’s Charter and Bylaws, may include financing by the Adviser or its
Affiliates) and (3) negotiating and entering into, on the Company’s and Operating Partnership’s behalf, financing arrangements (including one or more credit facilities), repurchase agreements, interest rate or currency swap
agreements, hedging arrangements, foreign exchange transactions, derivative transactions, and other agreements and instruments required or appropriate in connection with the Company’s and Operating Partnership’s activities; 

(f) engaging and supervising, on the Company’s and Operating Partnership’s behalf and at the Company’s and Operating
Partnership’s expense, independent contractors, advisors, consultants, attorneys, accountants, administrators, auditors, appraisers, independent valuation agents, escrow agents and other service providers (which may include Affiliates of the
Adviser) that provide various services with respect to the Company and Operating Partnership, including, without limitation, on-site managers, building and maintenance personnel, investment banking, securities
brokerage, mortgage brokerage, credit analysis, risk management services, asset management services, loan servicing, other financial, legal or accounting services, due diligence services, underwriting review services, and all other services
(including custody and transfer agent and registrar services) as may be required relating to the Company’s and Operating Partnership’s activities or investments (or potential Investments); 

(g) coordinating and managing operations of any Joint Venture or co-investment interests held by the
Company or Operating Partnership and conducting matters with the Joint Venture or co-investment partners; 

(h) communicating on the Company’s and Operating Partnership’s behalf with the holders of any of the Company’s equity or debt
securities as required to satisfy the reporting and other requirements of any governmental bodies or agencies or trading markets and to maintain effective relations with such holders; 

  
 7 

 (i) advising the Company in connection with policy decisions to be made by the Board; 

(j) engaging one or more subadvisors with respect to the management of the Company and Operating Partnership, including, where appropriate,
Affiliates of the Adviser; 
 (k) evaluating and recommending to the Board hedging strategies and engaging in hedging activities on the
Company’s and Operating Partnership’s behalf, consistent with the Company’s qualification as a REIT and with the Investment Guidelines; 

(l) investing and reinvesting any moneys and securities of the Company and the Operating Partnership (including investing in short-term
investments pending investment in other investments, payment of fees, costs and expenses, or payments of dividends or distributions to the Company’s stockholders and partners) and advising the Company as to the Company’s and Operating
Partnership’s capital structure and capital raising; 
 (m) determining valuations for the Company’s Real Property and Real
Estate-Related Assets and calculate, as of the last Business Day of each month, the Class T NAV per Share, Class S NAV per Share, Class D NAV per Share and Class I NAV per Share in accordance with the Valuation Guidelines, and in
connection therewith, obtain appraisals performed by an Independent Appraiser and other independent third party appraisal firms concerning the value of the Real Properties and obtain market quotations or conduct fair valuation determinations
concerning the value of Real Estate-Related Assets; 
 (n) providing input in connection with the appraisals performed by the Independent
Appraisers; 
 (o) monitoring the Company’s Real Property and Real Estate Related Assets for events that may be expected to have a
material impact on the most recent estimated values; 
 (p) monitoring each Independent Appraiser’s valuation process to ensure that it
complies with the Company’s valuation guidelines; 
 (q) delivering to, or maintain on behalf of, the Company copies of appraisals
obtained in connection with the investments in any Real Property; 
 (r) in the event that the Company is a commodity pool under the CEA,
acting as the Company’s commodity pool operator for the period and on the terms and conditions set forth in this Agreement, including, for the avoidance of doubt, the authority to make any filings, submissions or registrations (including for
exemptive or “no action” relief) to the extent required or desirable under the CEA (and the Company hereby appoints the Adviser to act in such capacity and the Adviser accepts such appointment and agrees to be responsible for such
services); 
 (s) placing, or arranging for the placement of, orders of Real Estate-Related Assets pursuant to the Adviser’s investment
determinations for the Company and the Operating Partnership either directly with the issuer or with a broker or dealer (including any Affiliated broker or dealer); and 

(t) performing such other services from time to time in connection with the management of the Company’s investment activities as the
Board shall reasonably request and/or the Adviser shall deem appropriate under the particular circumstances. 
 4. AUTHORITY OF
ADVISER. 
 (a) Pursuant to the terms of this Agreement (including the restrictions included in this Section 4 and in
Section 7), and subject to the continuing and exclusive authority of the Board over the management of the Company, the Board (by virtue of its approval of this Agreement and authorization of the execution hereof by the

  
 8 

 
officers of the Company) hereby delegates to the Adviser the authority to take, or cause to be taken, any and all actions and to execute and deliver any and all agreements, certificates,
assignments, instruments or other documents and to do any and all things that, in the judgment of the Adviser, may be necessary or advisable in connection with the Adviser’s duties described in Section 3, including the making of any
Investment that fits within the Company’s investment objectives, strategy and guidelines, policies and limitations and within the discretionary limits and authority as granted to the Adviser from time to time by the Board. 

(b) Notwithstanding the foregoing, any Investment that does not fit within the Investment Guidelines will require the prior approval of the
Board or any duly authorized committee of the Board, as the case may be. Except as otherwise set forth herein, in the Investment Guidelines or in the Charter, any Investment that fits within the Investment Guidelines may be made by the Adviser on
the Company’s or the Operating Partnership’s behalf without the prior approval of the Board or any duly authorized committee of the Board. 

(c) The prior approval of a majority of the Directors (including a majority of the Independent Directors) not otherwise interested in the
transaction will be required for each transaction to which the Adviser or its Affiliates is a party. 
 (d) The Board will review the
Investment Guidelines with sufficient frequency and at least annually and may, at any time upon the giving of notice to the Adviser, amend the Investment Guidelines; provided, however, that such modification or revocation shall be
effective upon receipt by the Adviser or such later date as is specified by the Board and included in the notice provided to the Adviser and such modification or revocation shall not be applicable to investment transactions to which the Adviser has
committed the Company or the Operating Partnership prior to the date of receipt by the Adviser of such notification, or if later, the effective date of such modification or revocation specified by the Board. 

(e) The Adviser may retain, for and on behalf, and at the sole cost and expense, of the Company, such services as the Adviser deems necessary
or advisable in connection with the management and operations of the Company, which may include Affiliates of the Adviser; provided, that any such services may only be provided by Affiliates to the extent such services are approved by a
majority of the Directors (including a majority of the Independent Directors) not otherwise interested in such transactions as being fair and reasonable to the Company and on terms and conditions not less favorable to the Company than those
available from non-Affiliated third parties. In performing its duties under Section 3, the Adviser shall be entitled to rely reasonably on qualified experts and professionals (including, without
limitation, accountants, legal counsel and other professional service providers) hired by the Adviser at the Company’s sole cost and expense. 

5. BANK ACCOUNTS. The Adviser may establish and maintain one or more bank accounts in the name of the Company and the
Operating Partnership and any subsidiary thereof and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company or the Operating Partnership, consistent with the
Adviser’s authority under this Agreement, provided that no funds shall be commingled with the funds of the Adviser; and the Adviser shall from time to time render, upon request by the Board, its audit committee or the auditors of the Company,
appropriate accountings of such collections and payments to the Board, its audit committee and the auditors of the Company, as applicable. 

6. RECORDS; ACCESS. The Adviser shall maintain appropriate records of its activities hereunder and make such records
available for inspection by the Board and by counsel, auditors and authorized agents of the Company, at any time or from time to time during normal business hours. The Adviser shall at all reasonable times have access to the books and records of the
Company and the Operating Partnership. 
 7. LIMITATIONS ON ACTIVITIES. The Adviser shall refrain from any action that,
in its sole judgment made in good faith, (i) is not in compliance with the Investment Guidelines, (ii) would adversely and materially affect the qualification of the Company as a REIT under the Code or the Company’s and the Operating
Partnership’s status as entities excluded from investment company status under the Investment Company Act, or 

  
 9 

 
(iii) would materially violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Company and the Operating Partnership or of any exchange on which
the securities of the Company may be listed or that would otherwise not be permitted by the Charter, Bylaws or Operating Partnership Agreement. If the Adviser is ordered to take any action by the Board, the Adviser shall seek to notify the Board if
it is the Adviser’s reasonable judgment that such action would adversely and materially affect such status or violate any such law, rule or regulation or the Charter, Bylaws or Operating Agreement. Notwithstanding the foregoing, neither the
Adviser nor any of its Affiliates shall be liable to the Company, the Operating Partnership, the Board, or the Stockholders for any act or omission by the Adviser or any of its Affiliates, except as provided in Section 20 of this Agreement.

 8. OTHER ACTIVITIES OF THE ADVISER. 

(a) Nothing in this Agreement shall (i) prevent the Adviser or any of its Affiliates, officers, directors or employees from engaging in
other businesses or from rendering services of any kind to any other Person or entity, whether or not the investment objectives or policies of any such other Person or entity are similar to those of the Company, including, without limitation, the
sponsoring, closing and/or managing of any Other Blackstone Accounts, (ii) in any way bind or restrict the Adviser or any of its Affiliates, officers, directors or employees from buying, selling or trading any securities or commodities for
their own accounts or for the account of others for whom the Adviser or any of its Affiliates, officers, directors or employees may be acting, or (iii) prevent the Adviser or any of its Affiliates, officers, directors or employees from
receiving fees or other compensation or profits from such activities described in this Section 8(a) which shall be for the sole benefit of the Adviser (and/or its Affiliates, officers, directors or employees). While information and
recommendations supplied to the Company shall, in the Adviser’s reasonable and good faith judgment, be appropriate under the circumstances and in light of the investment objectives and policies of the Company, such information and
recommendations may be different in certain material respects from the information and recommendations supplied by the Adviser or any Affiliate of the Adviser to others (including, for greater certainty, the Other Blackstone Accounts and their
investors, as described more fully in Section 8(b)). 
 (b) The Adviser and the Company acknowledge and agree that, notwithstanding
anything to the contrary contained herein, (i) Affiliates of the Adviser sponsor, advise and/or manage Other Blackstone Accounts and may in the future sponsor, advise and/or manage additional Other Blackstone Accounts (including Select
Opportunistic Blackstone Accounts), (ii) with respect to Other Blackstone Accounts with investment objectives or guidelines that overlap with the Company’s but that do not have priority over the Company, the Adviser and its Affiliates will
allocate investment opportunities between the Company and such Other Blackstone Accounts in accordance with Blackstone’s prevailing policies and procedures on a basis that the Adviser and its Affiliates determine to be reasonable in their sole
discretion, and there may be circumstances where investments that are consistent with the Company’s Investment Guidelines may be shared with or allocated to one or more Other Blackstone Accounts (in lieu of the Company) in accordance with
Blackstone’s prevailing policies and procedures and (iii) Select Opportunistic Blackstone Accounts will receive priority over the Company with respect to investments within such accounts’ investment objectives and guidelines and the
Adviser will not allocate investment opportunities to the Company unless the investment advisers of the Select Opportunistic Blackstone Accounts forgo, in their sole discretion, all or a portion of such investments because of such accounts’
investment objectives, guidelines, concentration limitations or otherwise. 
 (c) In connection with the services of the Adviser hereunder,
the Company and the Board acknowledge and/or agree that (i) as part of Blackstone’s regular businesses, personnel of the Adviser and its Affiliates may from
time-to-time work on other projects and matters (including with respect to one or more Other Blackstone Accounts), and that conflicts may arise with respect to the
allocation of personnel between the Company and one or more Other Blackstone Accounts and/or the Adviser and such other Affiliates, (ii) unless prohibited by the Charter, Other Blackstone Accounts may invest, from time to time, in investments
in which the Company also invests (including at a different level of an issuer’s capital structure (e.g., an investment by an Other Blackstone Account in a debt or mezzanine interest with respect to the same portfolio entity in which the
Company owns an 

  
 10 

 
equity interest or vice versa) or in a different tranche of equity or debt with respect to an issuer in which the Company has an interest) and while Blackstone will seek to resolve any such
conflicts in a fair and reasonable manner (subject to any priorities of the Select Opportunistic Blackstone Accounts) in accordance with its prevailing policies and procedures with respect to conflicts resolution among Other Blackstone Accounts
generally, such transactions are not required to be presented to the Board or any committee thereof for approval (unless otherwise required by the Charter or Investment Guidelines), and there can be no assurance that any conflicts will be resolved
in the Company’s favor, (iii) the Company will from time to time pay fees to the Adviser and its Affiliates, including portfolio entities of Other Blackstone Accounts, for providing various services described in the Prospectus
(collectively, “Services”), which fees will be in addition to the compensation paid to the Adviser pursuant to Section 10 hereof, (iv) the Adviser and its Affiliates will from time to time receive fees from portfolio entities or
other issuers for providing Services, including with respect to Other Blackstone Accounts and related portfolio entities, and while such fees will give rise to conflicts of interest the Company will not receive the benefit of any such fees, and
(v) the terms and conditions of the governing agreements of such Other Blackstone Accounts (including with respect to the economic, reporting, and other rights afforded to investors in such Other Blackstone Accounts) are materially different
from the terms and conditions applicable to the Company and the Stockholders, and neither the Company nor the Stockholders (in such capacity) shall have the right to receive the benefit of any such different terms applicable to investors in such
Other Blackstone Accounts as a result of an investment in the Company or otherwise. The Adviser shall keep the Board reasonably informed on a periodic basis in connection with the foregoing. 

(d) The Adviser is not permitted to consummate on the Company’s behalf any transaction that involves (i) the sale of any investment
to or (ii) the acquisition of any investment from Blackstone, any Other Blackstone Account or any of their Affiliates unless such transaction is approved by a majority of the Directors, including a majority of the Independent Directors, not
otherwise interested in such transaction as being fair and reasonable to the Company. In addition, for any such acquisition by the Company, the Company’s purchase price will be limited to the cost of the property to the Affiliate, including
acquisition-related expenses, or if substantial justification exists, the current appraised value of the property as determined by an Independent Appraiser. In addition, the Company may enter into Joint Ventures with Other Blackstone Accounts, or
with Blackstone, the Adviser, one or more Directors, or any of their respective Affiliates, only if a majority of the Directors (including a majority of the Independent Directors) not otherwise interested in the transaction approve the transaction
as being fair and reasonable to the Company and on substantially the same, or no less favorable, terms and conditions as those received by other Affiliate joint venture partners. The Adviser will seek to resolve any conflicts of interest in a fair
and reasonable manner (subject to any priorities of the Select Blackstone Accounts) in accordance with its prevailing policies and procedures with respect to conflicts resolution among Other Blackstone Accounts generally, but only those transactions
set forth in this Section 8(d) will be expressly required to be presented for approval to the Independent Directors or any committee thereof (unless otherwise required by the Charter or the Investment Guidelines). 

(e) For the avoidance of doubt, it is understood that neither the Company nor the Board has the authority to determine the salary, bonus or
any other compensation paid by the Adviser to any director, officer, member, partner, employee, or stockholder of the Adviser or its Affiliates, including any person who is also a director or officer employee of the Company. 

9. RELATIONSHIP WITH DIRECTORS AND OFFICERS. Subject to Section 7 of this Agreement and to restrictions advisable with
respect to the qualification of the Company as a REIT, directors, managers, officers and employees of the Adviser or an Affiliate of the Adviser or any corporate parent of an Affiliate, may serve as a Director or officer of the Company, except that
no director, officer or employee of the Adviser or its Affiliates who also is a Director or officer of the Company shall receive any compensation from the Company for serving as a Director or officer other than (a) reasonable reimbursement for
travel and related expenses incurred in attending meetings of the Board or (b) as otherwise approved by the Board, including a majority of the Independent Directors, and no such Director shall be deemed an Independent Director for purposes of
satisfying the Director independence requirement set forth in the Charter. 

  
 11 

 10. MANAGEMENT FEE. 

(a) The Company will pay the Adviser a management fee (the “Management Fee”) equal to 1.25% of NAV per annum payable monthly,
before giving effect to any accruals for the Management Fee, the Stockholder Servicing Fee, the Performance Allocation (as defined in the Operating Partnership Agreement) or any Distributions. The Adviser shall receive the Management Fee as
compensation for services rendered hereunder. The Adviser has agreed to waive its management fee for the first six months following the Commencement Date. 

(b) The Management Fee may be paid, at the Adviser’s election, in cash or cash equivalent aggregate NAV amounts of Class I Common
Shares or Class I units of the Operating Partnership. If the Adviser elects to receive any portion of its Management Fee in Class I Common Shares or Class I units of the Operating Partnership, the Adviser may elect to have the Company
repurchase such Class I Common Shares or Class I units of the Operating Partnership from the Adviser at a later date. Class I Common Shares and Class I units of the Operating Partnership obtained by the Adviser will not be
subject to the repurchase limits of the Company’s share repurchase plan or any reduction or penalty for an early repurchase. The Operating Partnership will repurchase any such Operating Partnership units for cash unless the Board determines
that any such repurchase for cash would be prohibited by applicable law or the Charter, in which case such Operating Partnership units will be repurchased for the Company’s Class I Common Shares with an equivalent aggregate NAV. The
Adviser will have the option of exchanging Class I Common Shares for an equivalent aggregate NAV amount of Class T Shares, Class S Common Shares or Class D Common Shares and will have registration rights with respect to shares of
the Company’s common stock. 
 (c) In the event this Agreement is terminated or its term expires without renewal, the Adviser will be
entitled to receive its prorated Management Fee through the date of termination. Such pro ration shall take into account the number of days of any partial calendar month or calendar year for which this Agreement was in effect. 

(d) In the event the Company or the Operating Partnership commences a liquidation of its Investments during any calendar year, the Company
will pay the Adviser the Management Fee from the proceeds of the liquidation. 
 11. EXPENSES. 

(a) As required by the NASAA REIT Guidelines, the cumulative Selling Commissions, Stockholder Servicing Fees and Organization and Offering
Expenses paid by the Company will not exceed 15.0% of Gross Proceeds from the sale of Shares in an Offering. 
 (b) Subject to Sections 4(e)
and 11(c), the Adviser shall be responsible for the expenses related to any and all personnel of the Adviser who provide investment advisory services to the Company pursuant to this Agreement (including, without limitation, each of the officers of
the Company and any Directors who are also directors, officers or employees of the Adviser or any of its Affiliates), including, without limitation, salaries, bonus and other wages, payroll taxes and the cost of employee benefit plans of such
personnel, and costs of insurance with respect to such personnel (“Adviser Expenses”). 
 (c) In addition to the
compensation paid to the Adviser pursuant to Section 10 hereof, the Company or the Operating Partnership shall pay all of its costs and expenses directly or reimburse the Adviser or its Affiliates for costs and expenses of the Adviser and its
Affiliates incurred on behalf of the Company, other than Adviser Expenses. Without limiting the generality of the foregoing, it is specifically agreed that the following costs and expenses of the Company or the Operating Partnership are not Adviser
Expenses and shall be paid by the Company or the Operating Partnership and shall not be paid by the Adviser or Affiliates of the Adviser: 

(i) Organization and Offering Expenses; provided that within 60 days after the end of the month in which an
Offering terminates, the Adviser shall reimburse the Company to the extent the Organization and 

  
 12 

 
Offering Expenses, Selling Commissions and Stockholder Servicing Fees borne by the Company exceed 15.0% of the Gross Proceeds raised in the completed Offering; 

(ii) Acquisition Expenses, subject to limitations set forth in the Charter; 

(iii) fees, costs and expenses in connection with the issuance and transaction costs incident to the trading, settling,
disposition and financing of the Investments of the Company and its Subsidiaries (whether or not consummated), including brokerage commissions, hedging costs, prime brokerage fees, custodial expenses, clearing and settlement charges, forfeited
deposits, and other investment costs fees and expenses actually incurred in connection with the pursuit, making, holding, settling, monitoring or disposing of actual or potential investments; 

(iv) the actual cost of goods and services used by the Company and obtained from Persons not Affiliated with the Adviser,
including fees paid to administrators, consultants, attorneys, technology providers and other services providers, and brokerage fees paid in connection with the purchase and sale of Investments; 

(v) all fees, costs and expenses of legal, tax, accounting, consulting, auditing (including internal audit), finance,
administrative, investment banking, capital market, transfer agency, escrow agency, custody, prime brokerage, asset management, property management, data or technology services and other non-investment
advisory services rendered to the Company by the Adviser or its Affiliates in compliance with Section 4(e); 
 (vi)
expenses of managing and operating the Company’s and the Operating Partnership’s Real Properties, whether payable to an Affiliate of the Adviser or a non-Affiliated Person; 

(vii) the compensation and expenses of the Directors (excluding those directors who are directors, officers or employees of the
Adviser) and the cost of liability insurance to indemnify the Company’s directors and officers; 
 (viii) interest and
fees and expenses arising out of borrowings made by the Company, including, but not limited to, costs associated with the establishment and maintenance of any of the Company’s credit facilities, other financing arrangements, or other
indebtedness of the Company (including commitment fees, accounting fees, legal fees, closing and other similar costs) or any of the Company’s securities offerings; 

(ix) expenses connected with communications to holders of the Company’s securities or securities of the Subsidiaries and
other bookkeeping and clerical work necessary in maintaining relations with holders of such securities and in complying with the continuous reporting and other requirements of governmental bodies or agencies, including, without limitation, all costs
of preparing and filing required reports with the SEC, the costs payable by the Company to any transfer agent and registrar, expenses in connection with the listing and/or trading of the Company’s securities on any exchange, the fees payable by
the Company to any such exchange in connection with its listing, costs of preparing, printing and mailing the Company’s annual report to the Stockholders and proxy materials with respect to any meeting of the Stockholders and any other reports
or related statements; 
 (x) the Company’s allocable share of costs associated with technology-related expenses,
including without limitation, any computer software or hardware, electronic equipment or purchased information technology services from third-party vendors or Affiliates of the Adviser, technology service providers and related software/hardware
utilized in connection with the Company’s investment and operational activities; 
 (xi) the Company’s allocable
share of expenses incurred by managers, officers, personnel and agents of the Adviser for travel on the Company’s behalf and other out-of-pocket expenses incurred
by them in connection with the purchase, financing, refinancing, sale or other disposition of an Investment; 
 (xii)
expenses relating to compliance-related matters and regulatory filings relating to the Company’s activities (including, without limitation, expenses relating to the preparation and filing of Form PF, Form ADV, reports to be filed with the U.S.
Commodity Futures Trading Commission, reports, disclosures, and/or other regulatory filings of the Adviser and its Affiliates relating to the Company’s activities (including 

  
 13 

 
the Company’s pro rata share of the costs of the Adviser and its Affiliates of regulatory expenses that relate to the Company and Other Blackstone Accounts)); 

(xiii) the costs of any litigation involving the Company or the Operating Partnership or their assets and the amount of any
judgments or settlements paid in connection therewith, directors and officers, liability or other insurance and indemnification or extraordinary expense or liability relating to the affairs of the Company; 

(xiv) all taxes and license fees; 

(xv) all insurance costs incurred in connection with the operation of the Company’s business except for the costs
attributable to the insurance that the Adviser elects to carry for itself and its personnel; 
 (xvi) expenses of managing,
improving, developing, operating and selling Investments, whether payable to an Affiliate of the Adviser or a non-Affiliated Person; 

(xvii) expenses connected with the payments of interest, dividends or distributions in cash or any other form authorized or
caused to be made by the Board to or on account of holders of the Company’s securities, including, without limitation, in connection with any distribution reinvestment plan; 

(xviii) any judgment or settlement of pending or threatened proceedings (whether civil, criminal or otherwise) against the
Company or the Operating Partnership, or against any Director or officer of the Company or in his or her capacity as such for which the Company is required to indemnify such Director or officer by any court or governmental agency; and 

(xix) expenses incurred in connection with the formation, organization and continuation of any corporation, partnership, Joint
Venture or other entity through which the Company’s investments are made or in which any such entity invests. 
 (d) The Adviser may,
at its option, elect not to seek reimbursement for certain expenses during a given period, which determination shall not be deemed to construe a waiver of reimbursement for similar expenses in future periods. 

(e) Any reimbursement payments owed by the Company to the Adviser may be offset by the Adviser against amounts due to the Company from the
Adviser. Cost and expense reimbursement to the Adviser shall be subject to adjustment at the end of each calendar year in connection with the annual audit of the Company. 

(f) Notwithstanding the foregoing, the Adviser shall pay for all Organization and Offering Expenses (other than Selling Commissions and
Stockholder Servicing Fees) incurred prior to the first anniversary of the Commencement Date. All Organization and Offering Expenses (other than Selling Commissions and Stockholder Servicing Fees) paid by the Adviser pursuant to this
Section 11(f) shall be reimbursed by the Company to the Adviser in 60 equal monthly installments commencing with the first anniversary of the Commencement Date. 

12. OTHER SERVICES. Should the Board request that the Adviser or any director, officer or employee thereof render services
for the Company and the Operating Partnership other than set forth in Section 3, such services shall be separately compensated at such rates and in such amounts as are agreed by the Adviser and the Independent Directors, subject to the
limitations contained in the Charter, and shall not be deemed to be services pursuant to the terms of this Agreement. 
 13.
REIMBURSEMENT TO THE ADVISER. Commencing upon the earlier to occur of four fiscal quarters after (i) the Corporation’s acquisition of its first asset or (ii) six months after the Commencement Date, the Company shall
not reimburse the Adviser at the end of any fiscal quarter for Total Operating Expenses that in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed (the “Excess Amount”) the greater of 2.0%
of Average Invested Assets or 25.0% of Net Income (the “2%/25% Guidelines”) for such four fiscal quarters unless the Independent Directors determine that such Excess Amount was justified, based on unusual

  
 14 

 
and nonrecurring factors that the Independent Directors deem sufficient. If the Independent Directors do not approve such Excess Amount as being so justified, the Adviser shall reimburse the
Company the amount by which the Total Operating Expenses exceeded the 2%/25% Guidelines. If the Independent Directors determine such Excess Amount was justified, then, within 60 days after the end of any fiscal quarter of the Company for which
Total Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, the Adviser, at the direction of the Independent Directors, shall cause such fact to be disclosed to the Stockholders in writing (or the Company shall disclose such fact to
the Stockholders in the next quarterly report of the Company or by filing a Current Report on Form 8-K with the Securities and Exchange Commission within 60 days of such quarter end), together with an
explanation of the factors the Independent Directors considered in determining that such excess were justified. The Company will ensure that such determination will be reflected in the minutes of the meetings of the Board. All figures used in the
foregoing computation shall be determined in accordance with GAAP applied on a consistent basis. 
 14. NO JOINT
VENTURE. The Company and the Operating Partnership, on the one hand, and the Adviser on the other, are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or
joint venturers or impose any liability as such on either of them. 
 15. TERM OF AGREEMENT. This Agreement shall
continue in force for a period of one year from the Effective Date, subject to an unlimited number of successive one-year renewals upon mutual consent of the parties. It is the duty of the Board to evaluate
the performance of the Adviser annually before renewing the Agreement, and each such renewal shall be for a term of no more than one year. 

16. TERMINATION BY THE PARTIES. This Agreement may be terminated (i) at the option of the Adviser immediately upon a
Change of Control of the Company or Operating Partnership; (ii) immediately by the Company or the Operating Partnership for Cause or upon the bankruptcy of the Adviser; or (iii) upon 60 days’ written notice without Cause or
penalty by a majority vote of the Independent Directors; or (iv) upon 60 days’ written notice by the Adviser. The provisions of Sections 18 through 22 survive termination of this Agreement. 

17. ASSIGNMENT TO AN AFFILIATE. This Agreement may be assigned by the Adviser to an Affiliate of the Adviser with the approval of
a majority of the Directors (including a majority of the Independent Directors). The Adviser may assign any rights to receive fees or other payments under this Agreement to any Person without obtaining the consent of the Board. This Agreement shall
not be assigned by the Company or the Operating Partnership without the approval of the Adviser, except in the case of an assignment by the Company or the Operating Partnership to a corporation or other organization which is a successor to all of
the assets, rights and obligations of the Company or the Operating Partnership, in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company and the Operating Partnership
are bound by this Agreement. This Agreement shall be binding on successors to the Company resulting from a Change in Control or sale of all or substantially all the assets of the Company or the Operating Partnership, and shall likewise be binding on
any successor to the Adviser. 
 18. PAYMENTS TO AND DUTIES OF ADVISER UPON TERMINATION. 

(a) After the Termination Date, the Adviser shall not be entitled to compensation for further services hereunder except it shall be entitled
to receive from the Company or the Operating Partnership within 30 days after the effective date of such termination all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Adviser prior to termination of this
Agreement, subject to the 2%/25% Guidelines to the extent applicable. 
 (b) The Adviser shall promptly upon termination: 

(i) pay over to the Company and the Operating Partnership all money collected and held for the account of the Company and the
Operating Partnership pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled; 

  
 15 

 (ii) deliver to the Board a full accounting, including a statement showing all
payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board; 

(iii) deliver to the Board all assets, including all Investments, and documents of the Company and the Operating Partnership
then in the custody of the Adviser; and 
 (iv) cooperate with, and take all reasonable actions requested by, the Company and
Board in making an orderly transition of the advisory function. 
 19. INDEMNIFICATION BY THE COMPANY AND THE OPERATING
PARTNERSHIP. The Company and the Operating Partnership shall indemnify and hold harmless the Adviser and its Affiliates, including their respective officers, directors, partners and employees, from all liability, claims, damages or
losses arising in the performance of their duties hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, and to
the fullest extent possible without such indemnification being inconsistent with the laws of the State of Maryland, the Charter or the provisions of Section II.G of the NASAA REIT Guidelines. 

20. INDEMNIFICATION BY ADVISER. The Adviser shall indemnify and hold harmless the Company and the Operating Partnership
from contract or other liability, claims, damages, taxes or losses and related expenses including attorneys’ fees, to the extent that (i) such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by
insurance and (ii) are incurred by reason of the Adviser’s bad faith, fraud, willful misconduct, gross negligence or reckless disregard of its duties under this Agreement; provided, however, that the Adviser shall not be held
responsible for any action of the Board in following or declining to follow any advice or recommendation given by the Adviser. 
 21. NON-SOLICITATION. In the event of a termination without Cause of this Agreement by the Company pursuant to Section 16(iii) hereof, for two (2) years after the Termination Date, the Company
shall not, without the consent of the Adviser, employ or otherwise retain any employee of the Adviser or any of its Affiliates or any person who has been employed by the Adviser or any of its Affiliates at any time within the two (2) year
period immediately preceding the date on which such person commences employment with or is otherwise retained by the Company. The Company acknowledges and agrees that, in addition to any damages, the Adviser may be entitled to equitable relief for
any violation of this Section 21 by the Company, including, without limitation, injunctive relief. 
 22. MISCELLANEOUS. 

(a) Notices. Any notice, report or other communication required or permitted to be given hereunder shall be in writing unless
some other method of giving such notice, report or other communication is required by the Charter, the Bylaws, or accepted by the party to whom it is given, and shall be given by being delivered by hand, by courier or overnight carrier, by
registered or certified mail, by electronic mail or posted on a password protected website maintained by the Adviser and for which the Company has received access instructions by electronic mail, when posted, using the contact information set forth
herein: 
  

			
	The Company:	  	 Blackstone Real Estate Income Trust, Inc.
 345
Park Avenue, 10th Floor
 New York, New York 10154
 Attention:
Chief Financial Officer
 Email: paul.quinlan@blackstone.com

 

			
	with required copies to:	  	 Simpson Thacher & Bartlett LLP
 425
Lexington Avenue
 New York, New York 10017
 Attention: Andrew
R. Keller
 Email: akeller@stblaw.com

 

  
 16 

			
		  	 Blackstone Real Estate Income Trust, Inc.
 345
Park Avenue, 10th Floor
 New York, New York 10154
 Attention:
Leon Volchyok
 Email: leon.volchyok@blackstone.com

  

			
	The Adviser:	  	 BX REIT Advisors L.L.C.
 c/o The Blackstone
Group L.P.
 345 Park Avenue, 42nd Floor
 New York, New York
10154
 Attention: General Counsel
 Email:
judy.turchin@blackstone.com

  

			
	with required copies to:	  	 Simpson Thacher & Bartlett LLP
 425
Lexington Avenue
 New York, New York 10017
 Attention: Michael
Wolitzer
 Email: mwolitzer@stblaw.com
  

		  	 BX REIT Advisors L.L.C.
 c/o The Blackstone
Group L.P.
 345 Park Avenue, 42nd Floor
 New York, New York
10154
 Attention: Leon Volchyok
 Email:
leon.volchyok@blackstone.com

 Any party may at any time give notice in writing to the other parties of a change in its address for the
purposes of this Section 22(a). 
 (b) Modification. This Agreement shall not be changed, modified, terminated, or
discharged, in whole or in part, except by an instrument in writing signed by the parties hereto, or their respective successors or assignees. 

(c) Severability. The provisions of this Agreement are independent of and severable from each other, and no provision shall be
affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part. 

(d) Governing Law; Exclusive Jurisdiction; Jury Trial. The provisions of this Agreement shall be construed and interpreted in
accordance with the laws of the State of New York. The parties hereby irrevocably submit to the exclusive jurisdiction of the courts of the State of New York and the Federal courts of the United States of America located in Borough of Manhattan, New
York for purposes of any suit, action or other proceeding arising from this Agreement, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof or thereof, that it is not
subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in such courts or that the venue thereof may not be appropriate or that this Agreement or any such document may not be enforced in or by such courts.
Each of the parties hereby consent to and grant any such court jurisdiction over the person of such parties and over the subject matter of any such dispute. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY
IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
 (e) Entire Agreement. This
Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied,
oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof. 

  
 17 

 (f) Indulgences, Not Waivers. Neither the failure nor any delay on the part of a
party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or
of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No
waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
 (g) Gender;
Number. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.

 (h) Headings. The titles and headings of Sections and Subsections contained in this Agreement are for convenience only, and
they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof. 
 (i) Execution in
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same
instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. 

23. INITIAL INVESTMENT. The Adviser or one of its Affiliates has contributed $200,000 (the “Initial Investment”)
in exchange for the initial issuance of Shares of the Company. The Adviser or its Affiliates may not sell any of the Shares purchased with the Initial Investment while the Adviser acts in an advisory capacity to the Company. The restrictions
included above shall not apply to any Shares acquired by the Adviser or its Affiliates other than the Shares acquired through the Initial Investment. Neither the Adviser nor its Affiliates shall vote any Shares they now own, or hereafter acquire, or
consent that such Shares be voted, on matters submitted to the Stockholders regarding (i) the removal of BX REIT Advisors L.L.C. as the Adviser; (ii) the removal of any member of the Board; or (iii) any transaction by and between the
Company and the Adviser, a member of the Board or any of their Affiliates. 

  
 18 

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

			
	Blackstone Real Estate Income Trust, Inc.
		
	 By:  
	 	   /s/ Wesley LePatner

		 	Name: Wesley LePatner
		 	Title: Chief Operating Officer
	
	BREIT Operating Partnership L.P.
		
	 By:
	 	 Blackstone Real Estate Income Trust, Inc., as

general partner

		
	 By:
	 	   /s/ Wesley LePatner

		 	Name: Wesley LePatner
		 	Title: Chief Operating Officer
	
	BX REIT Advisors L.L.C.
		
	 By:
	 	   /s/ Wesley LePatner

		 	Name: Wesley LePatner
		 	Title: Authorized Signatory

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