Common use of Additional Advance Clause in Contracts

Additional Advance. On or after the date that is six (6) calendar months from the date hereof, Borrower shall be entitled to an additional funding of Loan proceeds of an amount up to $4,000,000.00 (the “Additional Advance”), pursuant to the following terms and conditions: (a) Upon Borrower’s satisfaction of the Additional Advance Conditions (defined below), Lender shall fund the Additional Advance to Borrower on or before ten (10) Business Days thereof in accordance with the terms hereof, which, once funded, shall constitute part of the Obligations. Interest on the Additional Advance shall begin to accrue in accordance with the terms of the Loan Documents on the day that Lender funds the Additional Advance. Under no circumstance shall Borrower be entitled to receive or Lender be obligated to advance any funds in excess of the Additional Advance. Notwithstanding the foregoing, and regardless of Borrower’s satisfaction of the Additional Advance Conditions, on February 1, 2023 (the “Additional Advance Termination Date”), Borrower’s ability to obtain the Additional Advance shall terminate and Lender shall have no obligation to fund the Additional Advance,. (b) The term “Additional Advance Conditions” shall mean that with respect to any disbursement of the Additional Advance, (i) prior to the Additional Advance Termination Date Borrower has provided Lender with Borrower’s written request for the Additional Advance (the date of such request, the “Request Date”); (ii) no Trigger Period, or any event which Borrower has notice from Lender, that with the passage of time, would cause a Trigger Period, shall have occurred and remain uncured on the Request Date or on the date Lender funds the Additional Advance (the “Advance Date”); (iii) on the Request Date and on the Advance Date, the Debt Service Coverage Ratio, adjusted to reflect a debt constant of the amount of principal and interest that would be due and payable under this Agreement and the Note assuming an amortization of twenty-five (25) years and taking into account the Additional Advance, is greater than or equal to 1.30x; (iv) on the Request Date and on the Advance Date, the Debt Yield for the Property, taking into account the Additional Advance, is greater than or equal to 7.75%; (v) Lender’s internal asset management has approved the Additional Advance (applying substantially the same underwriting criteria used to approve the Initial Advance); and (vi) if required by Lender, Borrower has provided a date down endorsement to Lender’s Title Insurance Policy in connection with the Additional Advance to ensure Lender’s continuing first lien for the entire outstanding Principal Amount (including the Additional Advance) on the Property.

Additional Advance. On or after Subject to the date that is six (6) calendar months from the date hereofterms and conditions of this Agreement, Borrower Lenders agree to provide Borrowers, and Borrowers shall be entitled deemed to have accepted (if and when disbursed), an additional funding advance in the principal sum of Loan proceeds of an amount up to $4,000,000.00 8,000,000.00 (the “"Additional Advance”"). The Additional Advance, together with the principal amount of the Original Loan, shall be evidenced by the Note, as amended hereby, and shall be secured by the Deeds of Trust and the other Loan Documents (except those Loan Documents specifically stated to be unsecured). For avoidance of doubt, under no circumstances shall the Additional Advance be considered to be, or constitute, the exercise by Borrowers of their Accordion Option (as defined in Section 7.20 of the Loan Agreement). The Original Loan shall be deemed consolidated with the Additional Advance to form a single indebtedness in the principal amount of $108,000,000.00 (the "Increased Committed Amount"). Subject to further increases of the Increased Committed Amount pursuant to the following exercise of the Accordion Option under the terms of Section 7.20 of the Loan Agreement, at no time during the term of the Loan shall the outstanding amounts owing under the Loan exceed the Increased Committed Amount. The allocation of the Additional Advance between the Term Commitment and conditions:the Revolving Commitment shall be sixty percent (60%) to the Revolving Commitment (i.e. $64,800,000.00) and forty percent (40%) to the Term Commitment (i.e. $43,200,000.00). (a) Upon Borrower’s satisfaction of the Additional Advance Conditions (defined below), Lender shall fund the Additional Advance Exhibit E to Borrower on or before ten (10) Business Days thereof in accordance with the terms hereof, which, once funded, shall constitute part of the Obligations. Interest on the Additional Advance shall begin to accrue in accordance with the terms of the Loan Documents on the day that Lender funds the Additional Advance. Under no circumstance shall Borrower be entitled to receive or Lender be obligated to advance any funds Agreement is hereby deleted in excess of the Additional Advance. Notwithstanding the foregoing, its entirety and regardless of Borrower’s satisfaction of the Additional Advance Conditions, on February 1, 2023 (the “Additional Advance Termination Date”), Borrower’s ability to obtain the Additional Advance shall terminate and Lender shall have no obligation to fund the Additional Advance,replaced with Exhibit E attached hereto. (b) Exhibit I to the Loan Agreement is hereby deleted in its entirety and replaced with Exhibit I attached hereto. (c) The term “Additional Advance Conditions” shall mean that with respect reference to any disbursement "$60,000,000.00" in the definition of "Revolving Commitment" set forth in the "Definitions" Section of the Additional Advance, Loan Agreement is hereby changed to "$64,800,000.00." (d) The reference to "$40,000,000.00" in the definition of "Term Commitment" set forth in the "Definitions" Section of the Loan Agreement is hereby changed to "$43,200,000.00." (e) Any references in any of the Loan Documents to (i) prior to the Additional Advance Termination Date Borrower has provided Lender "$60,000,000" or other similar references are hereby replaced with Borrower’s written request for the Additional Advance (the date of such request"$64,800,000", the “Request Date”); and (ii) no Trigger Period, to "$40,000,000" or any event which Borrower has notice from Lender, that other similar references are hereby replaced with "$43,200,000." (f) The reference to "$100,000,000" in the passage definition of time, would cause a Trigger Period, shall have occurred and remain uncured on "Committed Amount" set forth in the Request Date or on the date Lender funds the Additional Advance (the “Advance Date”); (iii) on the Request Date and on the Advance Date, the Debt Service Coverage Ratio, adjusted to reflect a debt constant "Definitions" Section of the amount Loan Agreement is hereby changed to "$108,000,000." (g) All references in any of principal and interest that would be due and payable under this Agreement and the Deeds of Trust or the Note assuming an amortization of twenty-five and all other references in the Loan Documents to (25i) years "One Hundred Million", "$100,000,000" or other similar references are hereby replaced with "One Hundred Eight Million" and taking into account the Additional Advance"$108,000,000", is greater than or equal to 1.30x; (iv) on the Request Date and on the Advance Daterespectively, the Debt Yield for the Property, taking into account the Additional Advance, is greater than or equal to 7.75%; (v) Lender’s internal asset management has approved the Additional Advance (applying substantially the same underwriting criteria used to approve the Initial Advance); and (viii) if required to the "Note" or "Notes" shall mean the Note as amended hereby and by Lender, Borrower has provided a date down endorsement to Lender’s Title Insurance Policy in connection with the Additional Advance to ensure Lender’s continuing first lien for the entire outstanding Principal Amount Short Form Agreements (including the Additional Advance) on the Propertyas defined below).