Common use of Interest Reserve Clause in Contracts

Interest Reserve. A portion of the “Loan Proceeds” shown on Exhibit “B” hereto consists of “Interest Reserve” as part of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent to an “Interest Reserve Account”. As an accommodation to Borrower and provided no Event of Default has occurred and is continuing, Administrative Agent shall fund the interest due on the Note from the Interest Reserve Account for the account of Borrower, by Administrative Agent’s bookkeeping entries. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then Borrower shall still be responsible for payment of each monthly interest payment in full. Upon disbursement of funds from the Interest Reserve Account, the amount disbursed shall be added to the outstanding principal sum of the Loan and shall bear interest at the rate set forth in the Note. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent shall so require in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums of the Interest Reserve Account if an Event of Default has occurred and is continuing. Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources to pay interest, if in the Administrative Agent’s reasonable discretion there are, at any time prior to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion of the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing in this Agreement shall be construed to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months.

Interest Reserve. A portion Borrower acknowledges and agrees that the amount of Nine Hundred Forty-One Thousand Eight Hundred Thirteen and No/100 Dollars ($941,813.00), as specified in the “Approved Budget, represents reserves for interest on the Loan Proceeds” shown on Exhibit “B” hereto consists of “(the "Interest Reserve” "). So long as part of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent to an “Interest Reserve Account”. As an accommodation to Borrower and provided no Event of Default has occurred exists and is continuingno event exists which with the giving of notice or the passage of time or both would reasonably be expected to constitute an Event of Default, Administrative Agent shall fund the interest due on and payable under the Note may be paid from the Interest Reserve Account for the account of Borrower, by Administrative Agent’s bookkeeping entriesReserve. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then Borrower shall still notify Lender in writing as to the amount to be responsible for payment of each monthly interest payment in full. Upon disbursement of funds disbursed from the Interest Reserve, subject to verification by Lender. Borrower hereby authorizes and directs Lender, and Lender shall have the right to, disburse and charge the Interest Reserve Account, for interest due under the amount disbursed shall be added Loan on the seventeenth (17th) day of each month as interest payments become due and payable pursuant to the outstanding principal sum terms of the Loan Documents. Such disbursements shall be made by a bookkeeping entry on Lender's records and shall bear be reflected as additional Advances under the Loan, in amounts equal to the accrued interest at due and payable on the rate set forth in the Noteseventeenth (17th) day of each month. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments Such bookkeeping entry shall be paid deemed to be as if Borrower had delivered a check to Lender for the amount in question. Unless otherwise directed by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent shall so require Lender in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums of the Interest Reserve Account if an Event shall be available only for disbursements of Default has occurred the periodic payments of accrued interest due to Lender on the Loan pursuant to the terms of this Agreement and is continuingthe other Loan Documents. Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources to pay interest, if Any funds disbursed in the Administrative Agent’s reasonable discretion there are, at any time prior to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion of the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing manner provided in this Agreement Section 2.17 shall be construed have been deemed paid to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsreceived by Borrower.

Interest Reserve. A portion of Borrower acknowledges that the “Aggregate Commitment includes a reserve for interest due on the Loan Proceeds” shown on Exhibit “B” hereto consists of “(the "Interest Reserve” as part of ") in the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent amount set forth in the Budget. Subject to an “Interest Reserve Account”. As an accommodation to Borrower and provided no Event of Default has occurred and is continuingthe limitations set forth below, Administrative Agent shall fund the interest due on the Note from disburse and charge the Interest Reserve Account for interest due under the account of Notes on the Interest Payment Dates and for any payments due from Borrower to the Lender Swap Providers under any Lender Swap Agreement. Such disbursements shall be made by a bookkeeping entry on Administrative Agent's and each Lender's records reflecting, an amount equal to the accrued interest due and payable on the relevant payment date which shall be set off against any amounts owed such parties by Borrower under any Lender Swap Agreement. Borrower agrees that although such payments for amounts owed under the Lender Swap Agreements will be charged against the Interest Reserve, such payments shall in no event constitute or be characterized as interest under this Agreement or otherwise. Borrower shall cause the Lender Swap Providers to pay to Administrative Agent, for application towards interest owed hereunder, all amounts due Borrower under any Lender Swap Agreement. Any such funds disbursed in the manner provided in this Section shall be deemed paid to and received by Borrower, by Administrative Agent’s bookkeeping entries. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then Borrower shall still be responsible for payment of each monthly interest payment in full. Upon disbursement of funds from the Interest Reserve Account, the amount disbursed shall be added to the outstanding principal sum balance of the Loan and the Aggregate Outstanding Credit Exposure and shall bear interest at the rate set forth in the Notethis Agreement. When It is understood and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments agreed that no Lender shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation obligated to pay interest under the Note in the event Administrative Agent shall so require in its sole and absolute discretion. Notwithstanding disburse any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums portion of the Interest Reserve Account if an Event of Default has occurred and is continuing. Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources to pay interest, if in the Administrative Agent’s reasonable discretion there are, at any time prior when any condition to completion the making of an advance of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining in Loan is not satisfied (except that the Lenders shall have the right to fund such interest from the Interest Reserve Account even if no Draw Request has been submitted to fully cover projected interest costs prior to completion of or approved by the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing in this Agreement shall be construed to contravene any of Lenders or Administrative Agent’s rights under ). In the Collateral Assignment of Leases, Rents and Contract Rights. At such time as event the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall Lenders are not be required obligated to fund any sums disburse out of the Interest Reserve Account. Notwithstanding as aforesaid, and for any remaining portion of interest due on the foregoingLoan, if at any time and Borrower shall be responsible for the current payment of interest on the Loan from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsBorrower's own funds.

Interest Reserve. A portion Property is insufficient to pay interest, based upon the Pay Rate ("Debt Service"), Borrower may obtain an Advance equal to the difference between Debt Service and Net Cash Flow (but in no event will any such advance be greater than the amount of Debt Service payable for the “Loan Proceeds” shown period in question), on Exhibit “B” hereto consists the following conditions (any or all of “Interest Reserve” as part which may be waived by Lender). Any amount drawn under this Section 2.9 (which shall in no event exceed the sum total of $1,000,000.00) shall be used only for the “Soft Costs” payment of Debt Service, and Borrower agrees that Lender shall have the right to make an Advance hereunder directly to Lender (and such sum has been allocated by Administrative Agent shall nevertheless be deemed advanced to an “Interest Reserve Account”. As an accommodation to Borrower and provided no Event of Default has occurred and is continuingBorrower) or, Administrative Agent shall fund at the Lender's option, interest due on the Note payments from the Interest Reserve Account shall be funded by Lender for the account of BorrowerBorrower on the first day of each respective month, as the same become due, by Administrative Agent’s Lender's bookkeeping entries. Provided, however, that if Administrative Agent fails unless Borrower elects to fund the pay interest due on in cash to Lender. Each request for an Advance hereunder shall be accompanied by a detailed report for the Noteperiod in question establishing Net Cash Flow, then Borrower shall still be responsible for payment of each monthly interest payment in fulltogether with such supporting data as Lender may request. Upon disbursement of funds from the Interest Reserve Account, the amount disbursed shall be added to the outstanding principal sum of the Loan and shall bear interest at the rate set forth in the Note. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent Lender shall so require in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent Lender shall not be required to fund any sums of the Interest Reserve Account if (i) Borrower is in default under any provision of this Agreement; or (ii) any request for an Event Advance under this Section 2.9 made more than fifteen (15) days period for which an insufficiency of Default has occurred and Net Cash Flow is continuingclaimed. Borrower agrees expressly acknowledges than, whether or not it actually receives funds which are advanced pursuant to this Section 2.9, any such Advances are of direct and substantial benefit to Borrower inasmuch as they are used exclusively to make Debt Service payments on Borrower's behalf, and inasmuch as such advances eliminate the need for Borrower to obtain loans to replace the Advances or obtain additional equity from its shareholders, therefor, both of which Borrower represents it is unwilling and unable to do, it being the intention of Borrower and Lender that at Administrative Agent’s requestAdvances under this Section 2.9 be deemed Advances of principal for all purposes, Borrower will be required to apply net income generated by the property or other sources to pay interest, if in the Administrative Agent’s reasonable discretion there are, including interest calculations and usury analysis. If at any time prior (i) Borrower asserts, directly or indirectly, that funds and Advances pursuant to completion of the Improvements and issuance of a Final Certificate of Occupancythis Section 2.9 are not loan principal, insufficient funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion of the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing in this Agreement shall be construed to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three or (3ii) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time Lender receives evidence, by case law or otherwise, based upon which it reasonably believes that its understanding on the closing of the Loan that funds advanced for payment of loan interest constitute loan principal are (a) incorrect or (b) being attacked by any third party in any action or proceeding, whether or not relating to time the Debt Service Coverage Ratio falls below 1.0xLoan, then Lender at its option shall have the funds right to accelerate maturity of the loan unless within fifteen (15) days after notice of intent to accelerate Borrower repays to Lender a sum equal to all Advances under this Section 2.9 plus all interest thereon and executes in favor of Lender an instrument deleting this Section 2.9 and all references thereto as of the Interest Reserve Account will be available for draws closing of the Loan and containing a full release in accordance favor of Lender waiving any claims Borrower might have with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsrespect to this Section 2.9.

Interest Reserve. A portion of the “Loan Proceeds” shown on Exhibit “B” hereto consists A Amount, in the amount of Five Million Five Hundred Thirty Nine Thousand and No/100 Dollars ($5,539,000.00) is hereby allocated to and designated as the “Interest Reserve” as part ”. The Interest Reserve is an unfunded reserve, representing a portion of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent undisbursed Loan Proceeds, dedicated to an “Interest Reserve Account”. As an accommodation the sole purpose of lending funds to Borrower to enable Borrower to pay interest on Loan A and provided Loan B as and when such interest becomes due and payable. Provided that no Event of Default has shall have occurred and is be continuing, Administrative Agent Lender A shall fund the interest due on the Note make advances from the Interest Reserve Account to itself on each Payment Date for the account purpose of Borrowerpayment when due of accrued and unpaid interest on Loan A. Each such advance shall be credited to the amount of interest due and payable by Borrower on such Payment Date and shall reduce, by Administrative Agent’s bookkeeping entriesan equivalent amount, the remaining amount available to be advanced from the Interest Reserve. Provided, however, Borrower acknowledges and agrees that if Administrative Agent fails to fund the interest due on the Note, then Borrower shall still be responsible for payment of each monthly such accrued and unpaid interest payment in fullby the method described herein is for its convenience and benefit. Upon disbursement of funds If at any time the amount available to be advanced from the Interest Reserve Accountis reduced to zero, the amount disbursed Lender shall no longer have any obligation for funding of accrued and unpaid interest, whereupon Borrower shall be added and remain responsible for the continuation of all such payments from funds other than Loan Proceeds. If at any time Lender, in its reasonable judgment, estimates that the interest remaining to the outstanding principal sum of be paid on the Loan and shall bear interest at through the rate set forth in Maturity Date exceeds the Note. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation undisbursed Loan Proceeds allocated to pay interest under the Note in the event Administrative Agent shall so require in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums of the Interest Reserve Account if an Event plus the amount of Default has occurred and is continuing. Borrower agrees Operating Cash Flow that at Administrative Agent’s request, Borrower Lender reasonably estimates will be required available for payment of such interest plus the amount of any cost savings or Contingency that may be reallocated to apply net income generated the interest expense line item as permitted by the property or other sources to pay interestthis Agreement, if in the Administrative Agent’s reasonable discretion there areBorrower, at any time prior to completion of the Improvements and issuance of within ten (10) days after request by Lender, will make a Final Certificate of Occupancy, insufficient funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion of the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing in this Agreement shall be construed to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months “Balancing Deposit” (as defined in Section 4.4) in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums amount of the Interest Reserve Account. Notwithstanding shortfall which shall first be exhausted before any further disbursement of the foregoing, if at any time and from time Loan Proceeds to time pay interest on the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsLoan.

Interest Reserve. A portion of Borrower acknowledges that the “Loan Proceeds” shown on Exhibit “B” hereto consists of “Interest Reserve” as part of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent to an “Interest Reserve Account”. As an accommodation to Borrower and provided no Event of Default has occurred and is continuing, Administrative Agent shall fund the amount includes a reserve for interest due on the Note from Loan (the "Interest Reserve") in the amount set forth in the Budget. Subject to the limitations set forth below, Bank shall disburse and charge the Interest Reserve Account for interest due under the account of Note on the date such interest payments become due. Such disbursements shall be made by a bookkeeping entry on Bank's records reflecting, as an additional Advance, an amount equal to the accrued interest due and payable on the relevant payment date. Any such funds disbursed in the manner provided in this subsection shall be deemed paid to and received by Borrower, by Administrative Agent’s bookkeeping entries. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then Borrower shall still be responsible for payment of each monthly interest payment in full. Upon disbursement of funds from the Interest Reserve Account, the amount disbursed shall be added to the outstanding principal sum balance of the Loan and shall bear interest at the rate set forth in the Note. When It is understood and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent shall so require in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent agreed that (i) Bank shall not be required obligated to disburse any portion of-the Interest Reserve at any time when any condition to an Advance is not satisfied (except that Bank shall have the right to fund such interest from the Interest Reserve even if no draw request has been submitted to or approved by Bank), and (ii) all payments received by Borrower under leases for any sums portion of the Property, prior to the occurrence of an Event of Default, shall be applied first to the approved operating expenses of the Property and then toward interest due on the Loan, with only the balance funded out of the Interest Reserve. So long as funds remain available under the Interest Reserve, Borrower shall submit to Bank on the tenth day of each month a management certified income and expense report, in form and substance satisfactory to Bank, for the immediately preceding month. In the event Bank is not obligated to disburse out of the Interest Reserve Account if an Event of Default has occurred and is continuing. Borrower agrees that at Administrative Agent’s requestas aforesaid, Borrower will be required to apply net income generated by the property or other sources to pay interest, if in the Administrative Agent’s reasonable discretion there are, at any time prior to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion of the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing in this Agreement shall be construed to contravene any responsible for the current payment of Administrative Agent’s rights under interest on the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and Loan from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsBorrower's own funds.

Interest Reserve. A portion On the date hereof, Loan proceeds in the amount of $[____________________] will be withheld by Xxxxxx and allocated for the “payment of estimated interest due and owing under this Agreement, the Note and the other Loan Proceeds” shown on Exhibit “B” hereto consists of Documents (the “Interest Reserve” as part ”) for a period of [number of months in words] ([number of months in numbers]) months. Lender shall have the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent right to an “Interest Reserve Account”. As an accommodation to Borrower and provided no Event of Default has occurred and is continuing, Administrative Agent shall fund the interest due on the Note from apply amounts in the Interest Reserve Account for towards the account payment to Lender of Borrower, by Administrative Agent’s bookkeeping entries. Provided, however, accrued but unpaid interest accrued hereunder on each date that if Administrative Agent fails to fund interest is due and payable under the interest due on the Note, then Borrower shall still be responsible for payment of each monthly interest payment Note until all amounts in full. Upon disbursement of funds from the Interest Reserve Accountare depleted. Lender is hereby authorized, without the amount disbursed shall be added necessity of notifying Borrower, to charge the outstanding principal sum Note directly for each such payment of interest by interest journal entries on Xxxxxx’s books. Upon full distribution of the Loan and shall bear interest at the rate set forth in the Note. When and if such Interest Reserve Account is depletedor upon an Event of Default, then and in such event all monthly interest Borrower shall make payments shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay for interest under the Note directly to Lender in accordance with the event Administrative Agent shall so require in its sole provisions of the Note. Xxxxxxxx agrees and absolute discretion. Notwithstanding any other provision contained in this Agreement to acknowledges that the contrary, Administrative Agent shall not be required to fund any sums insufficiency of the amount of the Interest Reserve Account if or the election of Lender not to apply amounts in the Interest Reserve upon an Event of Default has occurred and is continuing. shall not constitute a limitation on the obligation of Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources to pay interestinterest due and owing under the Note. Upon the occurrence and continuance of an Event of Default, if in the Administrative Agent’s reasonable discretion there are, at any time prior to completion application of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining amounts in the Interest Reserve Account to fully cover projected interest costs prior to completion of the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing in this Agreement shall be construed to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents at Lender's sole discretion and Contract Rights. At for such time purposes as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined Xxxxxx's shall elect in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsits sole discretion.

Interest Reserve. A portion In the event the Project Budget for a Construction Loan includes an interest reserve in the amount of interest expected to be paid during the term of such Construction Loan (an "Interest Reserve"), during construction of the “Loan Proceeds” shown on Exhibit “B” hereto consists of “Interest Reserve” as part of applicable Project prior to the “Soft Costs” and Borrower agrees that applicable Construction Completion Date amounts in such sum has been allocated by Administrative Agent to an “Interest Reserve Account”. As an accommodation will be advanced by Lenders from time to Borrower and provided time as interest payments become due to pay regularly scheduled interest on such Construction Loan so long as (i) no Facility Event of Default has occurred hereunder, and is continuing(ii) with respect to the Project financed by such Construction Loan, Administrative Agent shall fund the interest due no Project Event of Default has occurred hereunder. Interest will be payable by Borrower on the Note from the that portion of any Interest Reserve Account actually disbursed by Lenders. Any Interest Reserve will not be included in the computation of the undisbursed portion of a Construction Loan for purposes of determining whether, with respect to the account applicable Construction Loan, a Construction Loan Balance Default exists. If, for any reason other than payment by Borrower of Borrowerinterest from other than Advances of the applicable Construction Loan, by Administrative Agent’s bookkeeping entries. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then Borrower shall still be responsible for payment of each monthly interest payment in full. Upon disbursement of Lenders do not advance funds from the Interest Reserve Account, the amount disbursed shall be added to the outstanding principal sum of the Loan and shall bear interest at the rate set forth in the Note. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent when due (which shall so require in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums of the Interest Reserve Account only occur if an Event of Default has occurred described in subsection (i) and is continuing. (ii) of this Section 3.7 shall have occurred), Agent shall so notify Borrower, in writing, and of the reason therefor, and Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources shall have a period of five (5) days from such notification to pay interestthe interest due; provided, if in however, that neither Lender shall have any obligation to make any further Advances hereunder (with respect to the Administrative Agent’s reasonable discretion there are, at particular Construction Loan involved or with respect to any time prior to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion of the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing in this Agreement shall be construed to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3other Construction Loan) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as such interest is paid. In the Premises achieves a Debt Service Coverage Ratio event any Interest Reserve is reduced to an amount less than the total amount of 1.0x for three interest due or reasonably anticipated to become due in connection with the applicable Construction Loan (3an "Interest Reserve Deficiency Default"), Agent will notify Borrower of such default and the amount of the deficiency, in writing, and Borrower shall deposit with Agent cash or the cash equivalent thereof within fifteen (15) consecutive monthsdays following notification from Agent; provided, however, that neither Lender shall have any obligation to make any further Advances hereunder (with respect to the particular Construction Loan involved or with respect to any other Construction Loan) until such time as Borrower has complied with the requirements hereof.

Interest Reserve. A portion The Loan includes an initial interest reserve of $2,694,100 (the “Loan Proceeds” shown on Exhibit “B” hereto consists of “Interest Reserve” as part ”). Subject to the terms and conditions of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent to an “Interest Reserve Account”. As an accommodation to Borrower and provided no Event of Default has occurred and is continuingthis Agreement, Administrative Agent shall fund the interest due on the Note Borrowers may request a disbursement from the Interest Reserve Account pursuant to §2.6. By execution hereof, each Borrower irrevocably authorizes the Agent, without the necessity of any further authorization, to cause the Banks to disburse directly to itself for the account of Borrowerthe Banks or to the holders of the Hedge Obligations, by Administrative Agent’s bookkeeping entries. Providedas applicable, however, that if Administrative Agent fails rather than to fund the Borrowers out of the Interest Reserve such sums as are necessary to pay (a) accrued interest due on the NoteLoan on each Interest Payment Date, then Borrower and (b) any regular quarterly payments due with respect to the Hedge Obligations (but not including any payments due as a result of a default, event of default, termination event or similar occurrence under the applicable Interest Rate Contract) (and any amount so advanced by the Banks without the submission by the Borrowers of a Loan Request shall still be responsible for payment of each monthly interest payment Base Rate Loans). Borrowers shall first use any amounts in full. Upon disbursement of funds the “Debt Service Sub-Account” (as defined in the Cash Collateral Agreement) before requesting any amounts from the Interest Reserve AccountReserve. Upon disbursement, the amount that is disbursed shall be disbursed pro rata by the Banks and shall be added to the then outstanding principal sum of the Loan Loans and shall bear interest at the rate set forth provided for in this Agreement. Upon the Note. When occurrence and if such during the continuance of an Event of Default under this Agreement or any other Loan Document, the Agent shall have the right but not the obligation to continue to cause disbursements of interest installments from the Interest Reserve Account is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether the Premises is producing incomeReserve. Establishment of an the Interest Reserve Account shall in no way relieve Borrower the Borrowers of its their obligation to pay make interest payments or payments with respect to the Hedge Obligations. Upon the occurrence of a Default or an Event of Default and during the continuance thereof under any Loan Document, the Note in Agent may, at its option, cease making any further disbursement from the event Administrative Agent shall so require in its sole and absolute discretionInterest Reserve. Notwithstanding any other provision contained anything in this Agreement to the contrary, Administrative Agent the Banks shall not be required have no obligation to fund make disbursements from the Interest Reserve for any sums purpose from and after such time as MMPI declares and pays its first (1st) dividend on any common stock of MMPI, at which time the amount of the Interest Reserve Account if an Event of Default has occurred and is continuing. Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources to pay interest, if in the Administrative Agent’s reasonable discretion there are, at any time prior to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion of the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing in this Agreement shall be construed to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three zero (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”$0), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months.

Interest Reserve. A portion Borrower acknowledges and agrees that the amount of Eight Hundred Twenty Eight Thousand ($828,000.00), as specified in the “Approved Budget, represents reserves for interest on the Loan Proceeds” shown on Exhibit “B” hereto consists of “(the "Interest Reserve” "). So long as part of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent to an “Interest Reserve Account”. As an accommodation to Borrower and provided no Event of Default has occurred exists and is continuingno event exists which with the giving of notice or the passage of time or both could constitute an Event of Default, Administrative Agent shall fund the interest due on and payable under the Note may be paid from the Interest Reserve Account for the account of Borrower, by Administrative Agent’s bookkeeping entriesReserve. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then Borrower shall still notify Lender in writing as to the amount to be responsible for payment of each monthly interest payment in full. Upon disbursement of funds disbursed from the Interest Reserve, subject to verification by Lender. Borrower hereby authorizes and directs Lender, and Lender shall have the right to disburse and charge the Interest Reserve Account, for interest due under the amount disbursed shall be added Loan on the first (1st) day of each month as interest payments become due and payable pursuant to the outstanding principal sum terms of the Loan Documents. Such disbursements shall be made by a bookkeeping entry on Lender's records and shall bear be reflected as additional Advances under the Loan, in amounts equal to the accrued interest at due and payable on the rate set forth in the Notefirst (1st) day of each month. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments Such bookkeeping entry shall be paid deemed to be as if Borrower had delivered a check to Lender for the amount in question. Unless otherwise directed by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent shall so require Lender in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums of the Interest Reserve Account if an Event shall be available only for disbursements of Default has occurred the periodic payments of accrued interest due to Lender on the Loan pursuant to the terms of this Agreement and is continuingthe other Loan Documents. Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources to pay interest, if Any funds disbursed in the Administrative Agent’s reasonable discretion there are, at any time prior to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion of the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing manner provided in this Agreement Section 2.17 shall be construed have been deemed paid to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsreceived by Borrower.

Interest Reserve. A portion No later than thirty (30) days after Closing, Borrower shall deposit the amount of $500,000.00 (the “Loan Proceeds” shown on Exhibit “B” hereto consists of “Interest Reserve” as part of the “Soft Costs” and Borrower agrees that such sum has been allocated ”) into an account established by Administrative Agent to an “Interest Reserve Account”in Borrower’s name but exclusively controlled by Administrative Agent. As an accommodation to Borrower and provided Provided that no Event of Default has shall have occurred and be continuing and the Property is continuingnot generating positive NOI, Administrative Agent shall fund the interest due on the Note make disbursements from the Interest Reserve Account for payment when due of any accrued and unpaid interest on the account Loan that cannot be paid with NOI. Borrower acknowledges and agrees that the payment of Borrowersuch accrued and unpaid interest by the method described herein is for its convenience and benefit. In the event that the Interest Reserve will be exhausted prior to the Property achieving a Debt Service Coverage Ratio of 1.20 to 1.00, by within ten (10) days of Administrative Agent’s bookkeeping entries. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then request Borrower shall still be responsible for payment of each monthly interest payment in full. Upon disbursement of funds from deposit into the Interest Reserve Account, an amount sufficient to bring the amount disbursed shall be added to the outstanding principal sum of the Loan and shall bear interest at the rate set forth in the Note. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent shall so require in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums balance of the Interest Reserve Account if an Event of Default has occurred and is continuingto $500,000.00. Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources to pay interest, if in the Administrative Agent’s reasonable discretion there are, If at any time prior to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient there are no funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion Reserve, Administrative Agent shall have no obligation for funding of the Improvements accrued and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoingunpaid interest, nothing in this Agreement whereupon Borrower shall be construed to contravene any and remain responsible for the continuation of Administrative Agent’s rights under all such payments from its own funds. Once the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises Property achieves a Debt Service Coverage Ratio of 1.0x 1.20 to 1.00 for three at least ninety (390) consecutive months (days as defined determined by Administrative Agent, all payments of interest on the Loan shall be paid from NOI and any funds remaining in the Interest Reserve shall be disbursed to Borrower; provided, however, that in the event the Debt Service Coverage Ratio calculation set forth in Exhibit “H”)ever falls below 1.20 to 1.00 as determined by Administrate Agent, then Administrative Agent shall not be required to fund any sums reinstate the usage of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time Borrower’s obligation to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in fund and replenish the Interest Reserve Account will be available for draws as provided in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsthis Section 2.15.

Interest Reserve. A portion of the “Loan Proceeds” shown on Exhibit “B” hereto consists of “Interest Reserve” as part proceeds of the “Soft Costs” Loan in the amount of Three Million and Borrower agrees that such sum has been allocated No/100 Dollars ($3,000,000.00) shall be retained by Administrative Agent Lenders to fund an “Interest Reserve Account”. As an accommodation interest reserve (the "INTEREST RESERVE") and shall be advanced by Lenders to Borrower and provided no Event of Default has occurred and is continuing, Administrative Agent shall fund pay the interest due on the Note Loan to the extent that such interest for a calendar month exceeds Net Cash Flow from the Project for such calendar month, subject to the terms hereof. Lenders shall not be required to make any other disbursements from the Interest Reserve Account except as set forth above. No portion of the Interest Reserve shall bear interest hereunder unless and until such portion is advanced by Lenders. Absent a default hereunder or under any of the other Loan Documents, and subject to Agent's prior approval which may be withheld in Agent's sole discretion regardless of whether a default is then continuing under any of the Loan Documents, Lenders shall make disbursements from the Interest Reserve on the applicable due date for the account payment of Borrower, by Administrative Agent’s bookkeeping entries. Provided, however, that if Administrative Agent fails to fund the interest due on the NoteLoan, then Borrower shall still be responsible for payment of each monthly interest payment in fullaccordance with Section 1.4 hereof. Upon disbursement of funds Disbursements from the Interest Reserve Account, the amount disbursed shall be added made no more than once a month, with the final disbursement to be made no later than the outstanding principal sum of Maturity Date. The aggregate disbursements from the Loan and shall bear interest at the rate set forth in the Note. When and if such Interest Reserve Account is depleted, then shall not exceed Three Million and No/100 Dollars ($3,000,000.00). Nothing in such event all monthly interest payments this subsection 1.1.4 shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way deemed to relieve Borrower of its obligation to timely pay all interest as it comes due. If Borrower has not paid all interest due on the Loan on the due date pursuant to Section 1.4, and if Lenders make an advance of interest under this subsection which is greater than the Note required amount of such advance, then upon determination and notification thereof by Agent to Borrower, Borrower shall repay the excess advance within two (2) Business Days after Borrower's receipt of such notice (notwithstanding anything to the contrary contained in the event Administrative Agent Section 1.6 hereof). Such repayment shall so require in its sole and absolute discretion. Notwithstanding constitute a permitted prepayment of principal, without penalty of any sort, notwithstanding any other provision contained in of this Agreement Amendment or the other Loan Documents to the contrary. For example: if prior to any Loan advance, Administrative Agent shall not be required to fund any sums on the first day of a calendar month, $100.00 of interest had accrued for the prior month (the "PRIOR MONTH") on the portion of the Interest Reserve Account if an Event Loan advanced; and the Borrower paid no interest on such day; and Lenders advanced the entire $100.00 of Default has occurred and is continuing. Borrower agrees interest due on that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources to pay interest, if in the Administrative Agent’s reasonable discretion day (there are, at any time prior to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient being sufficient funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion do so); and the financial reports for the Project for the Prior Month received by Agent by the twentieth (20th) of the Improvements month following the Prior Month show that the Net Cash Flow for the Prior Month was $30.00, the entire advance of $100.00 would be added to the principal balance of the Loan on the date of the advance. If Agent sends Borrower a notice stating that the Interest Reserve was overadvanced by $30.00, Borrower would then be obligated to pay back the $30.00 within two (2) Business Days after Borrower received such notice. Upon receipt of the $30.00 by Agent, the principal balance would be reduced as of that date by $30.00, the Interest Reserve would be increased by the $30.00 repayment, and issuance such partial prepayment of a Final Certificate principal would be allowed without penalty of Occupancyany sort. Notwithstanding the foregoing, nothing Nothing in this Agreement shall example should be construed to contravene any either (i) relieve Borrower of Administrative Agent’s rights under its obligation to have paid the Collateral Assignment of Leases, Rents and Contract Rights. At such time as $30.00 on the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums first day of the Interest Reserve Account. Notwithstanding month following the foregoingPrior Month, if at any time and from time or (ii) require Lenders to time have advanced the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months$30.00.

Interest Reserve. A portion Notwithstanding any provisions of paragraph 1 of this Article I to the contrary, Lender shall be entitled to withhold the Interest Reserve undisbursed from the proceeds of the “Loan Proceeds” shown on Exhibit “B” hereto consists of “Interest Reserve” Loan. So long as part of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent to an “Interest Reserve Account”. As an accommodation to Borrower and provided no Event of Default has occurred and is continuing, Administrative Agent Lender shall fund the interest due on the Note from apply such portion of the Interest Reserve Account for the account of Borrower, by Administrative Agent’s bookkeeping entries. Provided, however, that if Administrative Agent fails as is available and may be necessary to fund the pay any monthly interest due and payable on the Note, then Borrower shall still be responsible for payment of each monthly interest payment in full. Upon disbursement of funds from Loan on the Due Date thereof by debiting the Interest Reserve Account, in the amount disbursed appropriate amount. Lender shall be added provide Borrower on a monthly basis with an accounting of all debits and credits made to the outstanding principal sum of the Loan and shall bear interest at the rate set forth in the Note. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether as aforesaid. Following the Premises is producing income. Establishment occurrence of an Interest Reserve Account shall in no way relieve Borrower Event of its obligation to pay interest under the Note in the event Administrative Agent shall so require Default, Lender, in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent may, but shall not be required to fund any sums obligated to, apply such portion of the Interest Reserve Account if an Event to pay any accrued interest on the Loan or to pay any other sums payable to Lender under this Loan Agreement or any of Default has occurred and is continuingthe other Loan Documents. Borrower agrees that at Administrative Agent’s request, Borrower will be required hereby consents to apply net income generated by and approves the property or other sources to pay interest, if in the Administrative Agent’s reasonable discretion there are, at any time prior to completion use of such Interest Reserve for each and all of the Improvements and issuance above purposes without any further direction from Borrower at the time of a Final Certificate of Occupancyany such application. To the extent not applied by Lender as set forth hereinabove, insufficient such proceeds shall not be available to be drawn by Borrower hereunder for any other purpose; provided, however, any funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion at the end of the Improvements Construction Period after payment of all accrued and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing in this Agreement unpaid interest shall be construed applied to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums reduction of the principal balance of the Loan unless the parties agree otherwise in writing to a different application of such excess funds. Establishment of this Interest Reserve Account. Notwithstanding does not absolve the foregoing, if at any time Borrower from responsibility for the payment of interest on the Loan as and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the when due should funds in the Interest Reserve Account will at any time be available insufficient for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthspurpose.

Interest Reserve. A portion At the closing of the “Loan, Loan Proceeds” shown on Exhibit “B” hereto consists proceeds in the ---------------- amount of “$400,000.00 shall be deposited as an interest reserve (the "Interest Reserve” as part ") with the Disbursement Agent. The Interest Reserve shall be disbursed monthly directly to Lender, without any instruction or request for disbursement from Borrower, in payment of interest which accrues and becomes due under the Note. Lender shall provide Borrower with a monthly interest statement setting forth the amount of interest accrued each month under the Note. Depletion of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent to an “Interest Reserve Account”shall not release Borrower from any of Borrower's obligations under the Loan Documents, including but not limited to the obligation to pay interest accruing under the Note. As an accommodation After the depletion of the Interest Reserve, or so long as any condition to the making of any disbursement under this Agreement has not been satisfied, all interest payments under the Note shall be made by Borrower using its own funds; provided that Lender at its option and provided in its sole discretion may make disbursements from the Interest Reserve notwithstanding that all such conditions may not have been satisfied. All interest earned on the Interest Reserve funds while on deposit with the Disbursement Agent shall be added to the Interest Reserve funds and upon full repayment of the Note, so long as no Event of Default has occurred and is continuing, Administrative Agent shall fund the interest due on the Note from the Interest Reserve Account be payable to, or for the account of benefit of, Borrower, by Administrative Agent’s bookkeeping entries. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then Borrower shall still be responsible for payment of each monthly interest payment in full. Upon disbursement of funds from the Interest Reserve Account, the amount disbursed shall be added to the outstanding principal sum of the Loan and shall bear interest at the rate set forth in the Note. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in So long as no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent shall so require in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums of the Interest Reserve Account if an Event of Default has occurred and is continuing. Borrower agrees that at Administrative Agent’s request, Borrower will be required may add up to apply net income generated by $25,000.00 from the property or other sources home escrow closing proceeds for each Phase to pay interestthe Interest Reserve, if in the Administrative Agent’s reasonable discretion there are, at any time prior provided that Borrower may add no more than $75,000.00 to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion over the term of the Improvements and issuance Loan. Any such addition by Borrower shall reduce the amount of a Final Certificate of Occupancy. Notwithstanding principal reduction payable to Lender from the foregoing, nothing in this Agreement shall be construed to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Control Account. Notwithstanding the foregoing, if at any time and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months.

Interest Reserve. A Contemporaneously with the execution hereof, Borrower has established with Lender, from proceeds of the Loan, a reserve (the "Interest Reserve") in an initial amount equal to Six Hundred Seventeen Thousand Five Hundred and No/100 Dollars ($617,500.00). The Interest Reserve may be periodically disbursed directly by Lender to Lender for the payment of interest which accrues and becomes due under the Note pursuant to the terms and conditions of this Section 2.4 and Section 3.1.2. If at any time there is an Interest Reserve Deficiency, Borrower shall, within thirty (30) days after written notice by Lender, deposit with Lender (or into a Reserve established by Lender) the amount of the Interest Reserve Deficiency. Such deposit by Borrower (other than the initial amount of $617,500.00 specified above) shall be derived from additional Borrower Equity and shall not come from Loan proceeds or otherwise be borrowed. Lender is hereby authorized to charge the Loan directly for such interest payments when due by reducing the amount in the Interest Reserve pursuant to the terms and conditions of this Section 2.4 and Section 3.1.2. If Lender disburses funds to Lender directly from the Interest Reserve, Lender shall provide Borrower with a monthly interest statement. Depletion of the Interest Reserve shall not release Borrower from any of Borrower’s obligations under the Loan Documents including, without limitation, payment of all accrued and due interest. Lender shall have no obligation to release any portion of the “Loan Proceeds” shown on Exhibit “B” hereto consists of “Interest Reserve” as part of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent to an “Interest Reserve Account”. As during any period that a Default (other than an accommodation to Borrower and provided no Unintentional Non-Monetary Default) or an Event of Default exists and is continuing. Commencing on March 1, 2015, Borrower shall fund and maintain the Interest Reserve by delivering to Lender on each Payment Date a deposit into the Interest Reserve equal to One Hundred Thousand and No/Dollars ($100,000) per month; provided, however, that, Borrower shall have no obligation to fund the Interest Reserve for the months of December, January and February of each year (it being understood that the monthly deposits into the Interest Reserve shall recommence in March of each year). Lender shall have the right, in its reasonable discretion, to increase the amount of monthly deposits required to be made by Borrower into the Interest Reserve from time to time following Lender’s review of the Approved Budget. So long as no Default (other than an Unintentional Non-Monetary Default) or Event of Default hereunder or under the other Loan Documents has occurred and is continuing, Administrative Agent shall fund the interest due on the Note from all sums in the Interest Reserve Account for and disbursed to Borrower (pursuant to the account of Borrowerterms hereof, including Section 3.1) shall be held by Administrative Agent’s bookkeeping entries. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then Borrower shall still be responsible for payment of each monthly interest payment Lender in full. Upon disbursement of funds from the Interest Reserve Account, for the amount disbursed shall be added to payment of interest which accrues and becomes due under the outstanding principal sum Note. Upon assignment of the Loan by Lender, any funds in the Interest Reserve shall be turned over to the assignee and any responsibility of Lender, as assignor, with respect thereto shall bear interest at terminate. Funds in the rate Interest Reserve shall only be used for the purpose set forth in the Note. When and this Section, except that if such Interest Reserve Account there is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent shall so require in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums of the Interest Reserve Account if an Event of Default has occurred and is continuing. Borrower agrees that at Administrative Agent’s requestunder the Loan Documents, Borrower will Lender may, but shall not be required to obligated to, apply net income generated by the property or other sources to pay interest, if in the Administrative Agent’s reasonable discretion there are, at any time prior to completion that such Event of Default is continuing the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds balance then remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion of against the Improvements and issuance of a Final Certificate of Occupancyindebtedness secured hereby in whatever order Lender shall subjectively determine. Notwithstanding the foregoing, nothing in this Agreement shall be construed to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At No such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums application of the Interest Reserve Accountshall be deemed to cure any Default or Event of Default hereunder. Notwithstanding Upon full payment of the foregoingindebtedness secured hereby in accordance with its terms or at such earlier time as Lender may elect, if the balance of the Interest Reserve then in Lender's possession shall be paid over to Borrower and no other party shall have any right or claim thereto. The Interest Reserve shall not, unless otherwise explicitly required by applicable law, be or be deemed to be escrow or trust funds, but, at any time Lender's option and from time in Lender's discretion, may either be held in a separate account or be commingled by Lender with the general funds of Lender or Lender's loan servicer. Borrower understands and agrees that, notwithstanding the establishment of the Interest Reserve as herein required, all of the proceeds of the Note have been, and shall be considered, fully disbursed and shall bear interest and be payable on the terms provided therein. Borrower grants to time the Debt Service Coverage Ratio falls below 1.0x, then the Lender a first priority security interest in all funds on deposit in the Interest Reserve Account will be available for draws to secure its obligations under the Loan Documents. Borrower shall execute any and all documents or agreements, and take such actions, as Lender in accordance with its good faith reasonably deems necessary or advisable to ensure that Lender shall at all times retain a first-priority perfected security interest in the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsInterest Reserve.

Interest Reserve. A portion On the Effective Date, Agent shall set aside out of the “Loan Proceeds” shown on Exhibit “B” hereto consists of “Interest Reserve” as part undisbursed proceeds of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent Loan an interest reserve for payment of Interest Incurred in the amount equal to an not less than twelve (12) months of projected Interest Incurred for the Loan (the “Interest Reserve AccountAmount”). As an accommodation to Borrower and provided no Event of Default has occurred and is continuing, Administrative Agent shall fund the interest due on the Note from the The Interest Reserve Account for the account of Borrower, by Administrative Agent’s bookkeeping entries. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then Borrower Amount shall still be responsible for payment of each monthly interest payment deposited in full. Upon disbursement of funds from the Interest Reserve Account, the amount disbursed shall be added . Borrower hereby grants to the outstanding principal sum Agent on behalf of the Loan Lenders a perfected, first-in-priority security interest in and shall bear interest at the rate set forth in the Note. When and if such Interest Reserve Account is depleted, then and in such event to all monthly interest payments shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent shall so require in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums of the Interest Reserve Account if an Event of Default has occurred and is continuing. Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property funds now or other sources to pay interest, if in the Administrative Agent’s reasonable discretion there are, at any time prior to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining hereafter held on deposit in the Interest Reserve Account to fully cover projected interest costs prior to completion secure the payment and performance of the Improvements Obligations, and issuance the Agent shall have all rights and remedies available to a secured party under the Uniform Commercial Code with respect to such funds. Nothing set forth in this Section 2.2(b) shall be deemed to limit or impair Borrower’s obligation to pay interest and all other amounts due hereunder as and when such amounts become due. The aggregate amount of a Final Certificate the Interest Reserve shall be deducted from the proceeds of Occupancythe Loan otherwise available for disbursement in accordance with this Agreement. Notwithstanding the foregoing, nothing Agent may in this Agreement its commercially reasonable discretion disburse the Interest Reserve Amount in payment of Interest Incurred. The Interest Reserve Amount shall be construed required to contravene be fully funded at all times (with Borrower agreeing to repay any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents balance or disbursements in such Interest Reserve Account on each Interest Payment Date and Contract Rightsin any event no later than five (5) Business Days after notice from Agent as to such deficiency). At such time as the Premises achieves a Debt Service Coverage Ratio Borrower commences deliveries of 1.0x Homes for the Brightwater Project pursuant to the Housing Purchase Contracts the Interest Reserve Amount shall be reduced to an amount not less than three (3) consecutive months (as defined in of projected Interest Incurred for the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsLoan.

Interest Reserve. A portion Borrower acknowledges and agrees that the amount of Two Million One Hundred Seventy Thousand One Hundred Seventy-Two and No/100 Dollars ($2,170,172.00), as specified in the “Approved Budget, represents reserves for interest on the Loan Proceeds” shown on Exhibit “B” hereto consists of “(the "Interest Reserve” "). So long as part of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent to an “Interest Reserve Account”. As an accommodation to Borrower and provided no Event of Default has occurred exists and is continuingno event exists which with the giving of notice or the passage of time or both would reasonably be expected to constitute an Event of Default, Administrative Agent shall fund the interest due on and payable under the Note may be paid from the Interest Reserve Account for the account of Borrower, by Administrative Agent’s bookkeeping entriesReserve. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then Borrower shall still notify Lender in writing as to the amount to be responsible for payment of each monthly interest payment in full. Upon disbursement of funds disbursed from the Interest Reserve, subject to verification by Lender. Borrower hereby authorizes and directs Lender, and Lender shall have the right to disburse and charge the Interest Reserve Account, for interest due under the amount disbursed shall be added Loan on the seventeenth (17th) day of each month as interest payments become due and payable pursuant to the outstanding principal sum terms of the Loan Documents. Such disbursements shall be made by a bookkeeping entry on Lender's records and shall bear be reflected as additional Advances under the Loan, in amounts equal to the accrued interest at due and payable on the rate set forth in the Noteseventeenth (17th) day of each month. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments Such bookkeeping entry shall be paid deemed to be as if Borrower had delivered a check to Lender for the amount in question. Unless otherwise directed by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent shall so require Lender in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums of the Interest Reserve Account if an Event shall be available only for disbursements of Default has occurred the periodic payments of accrued interest due to Lender on the Loan pursuant to the terms of this Agreement and is continuingthe other Loan Documents. Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources to pay interest, if Any funds disbursed in the Administrative Agent’s reasonable discretion there are, at any time prior to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining in the Interest Reserve Account to fully cover projected interest costs prior to completion of the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing manner provided in this Agreement Section 2.17 shall be construed have been deemed paid to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsreceived by Borrower.

Interest Reserve. A portion Lender shall allocate the sum of $0.00 of the “---------------- Loan Proceeds” shown on Exhibit “B” hereto consists of “to an interest reserve (the "Interest Reserve” as part ") to ensure payment by Borrower of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent to an “Interest Reserve Account”. As an accommodation to Borrower and provided no Event of Default has occurred and is continuing, Administrative Agent shall fund the interest due on to Lender under the Note Loan. Lender shall disburse from the Interest Reserve Account for such amounts as may be necessary to pay interest on the account Loan on the first banking Business Day of Borrower, by Administrative Agent’s bookkeeping entries. Provided, however, each respective month that if Administrative Agent fails to fund the interest same becomes due on under the terms of the Note, then unless Borrower shall still be responsible for payment elects to pay such interest in cash when due. It is understood that as long as there are sufficient funds in the Interest Reserve, Borrower has the option of each monthly not paying such interest payment in full. Upon disbursement cash, but rather of funds having such interest paid from the Interest Reserve Account, and the amount amounts thus disbursed shall be added to the outstanding principal sum amount of the Loan principal of the Loan. This option is given at Borrower's request and for the benefit of Borrower and shall bear be deemed to have been exercised by Borrower without the necessity of further documentation on each interest at payment date during the rate set forth period that the Interest Reserve has sufficient funds. At any time that interest payments on the Loan shall be due, Lender shall xxxx Borrower for that interest and Borrower may either (a) pay the interest and request Lender to reimburse Borrower for any such Interest so paid from, the Interest Reserve and charge Borrower's account therefor, or (b) request Lender to advance any such amount of interest due to itself from the Interest Reserve and simultaneously charge Borrower's account therefor. Before any default in any of the Noteterms, covenants, and provisions of any of the documents evidencing and securing the Loan, Lender shall, to the extent the Interest Reserve is sufficient, either (a) advance any such amount of interest due to itself from the Interest Reserve and simultaneously charge Borrower's account therefor, or (b) reimburse Borrower from the Interest Reserve for any interest paid by Borrower, as may be requested by Borrower under the terms hereof. The amount of the each payment out of the Interest Reserve shall increase in respective amounts the then-outstanding principal balance due on the Loan. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether Borrower in cash. If at the Premises time the Final Advance under Paragraph 4.4 hereof is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent shall so require in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums of the Interest Reserve Account if an Event of Default has occurred and is continuing. Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources to pay interest, if in the Administrative Agent’s reasonable discretion made there are, at any time prior to completion of the Improvements and issuance of a Final Certificate of Occupancy, insufficient funds remaining remain undisbursed amounts in the Interest Reserve Account Reserve, such amounts shall be disbursed to fully cover projected interest costs prior to completion Borrower as part of the Improvements and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing in this Agreement shall be construed to contravene any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsAdvance.

Interest Reserve. A portion Included in the Approved Budget is an Interest Reserve estimated to be sufficient to meet interest requirements accruing under the Loan prior to the Maturity Date. Subject to the conditions to disbursement set forth in this Agreement, Bank shall use the Interest Reserve to allow Borrower to pay unpaid accrued interest on the Loan in one of the “Loan Proceeds” shown methods selected by Bank. Without limiting the foregoing, as one of the methods available to Bank, Bank may, for each and every calendar month, record on Exhibit “B” hereto consists and then enter into its books or records an additional advance of “principal of the Construction Funds in the amount of the unpaid accrued interest to then become due, on and effective as of the first day of the calendar month, or such day as the Bank shall elect, and Bank may simultaneously record and enter the receipt by it of such accrued interest, on and effective the same day. Every such recordation and entry of principal advance and receipt of interest payment shall be deemed to be made on the first day of the calendar month, notwithstanding that the actual recordation or entry may occur at a later date. No separate fund or account shall be created for the Interest Reserve” as part of the “Soft Costs” and Borrower agrees that such sum has been allocated by Administrative Agent . Bank may in its sole discretion refuse to an “Interest Reserve Account”. As an accommodation allow interest to Borrower and provided no Event of Default has occurred and is continuing, Administrative Agent shall fund the interest due on the Note be paid from the Interest Reserve Account for the account of Borrowerby any method, by Administrative Agent’s bookkeeping entries. Provided, however, that if Administrative Agent fails to fund the interest due on the Note, then Borrower shall still be responsible for payment of each monthly interest payment in full. Upon disbursement of funds from the Interest Reserve Account, the amount disbursed shall be added to the outstanding principal sum of the Loan and shall bear interest at the rate set forth in the Note. When and if such Interest Reserve Account is depleted, then and in such event all monthly interest payments shall be paid by Borrower, regardless of whether the Premises is producing income. Establishment of an Interest Reserve Account shall in no way relieve Borrower of its obligation to pay interest under the Note in the event Administrative Agent shall so require in its sole and absolute discretion. Notwithstanding any other provision contained in this Agreement to the contrary, Administrative Agent shall not be required to fund any sums of the Interest Reserve Account if (a) an Event of Default has occurred and is continuingoccurred, or (b) disbursements under the Loan have been suspended for any reason for a period of thirty (30) days or more. Borrower agrees that at Administrative Agent’s request, Borrower will be required to apply net income generated by the property or other sources If Bank determines not to pay interest, if interest in the Administrative Agent’s reasonable discretion there are, at event any time prior to completion of the Improvements and issuance foregoing conditions exist, or if the amount available for payment of a Final Certificate of Occupancy, insufficient funds remaining in interest from the Interest Reserve Account is insufficient to fully cover projected pay any accrued interest costs prior to completion of when due, the Improvements Bank shall so notify Borrower and issuance of a Final Certificate of Occupancy. Notwithstanding the foregoing, nothing in this Agreement thereupon Borrower shall be construed obligated to contravene pay such interest to Bank when due, without the use of any of Administrative Agent’s rights under the Collateral Assignment of Leases, Rents and Contract Rights. At such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive months (as defined in the Debt Service Coverage Ratio calculation set forth in Exhibit “H”), Administrative Agent shall not be required to fund any sums of the Interest Reserve Account. Notwithstanding the foregoing, if at any time and from time to time the Debt Service Coverage Ratio falls below 1.0x, then the funds in the Interest Reserve Account will be available for draws in accordance with the terms hereof until such time as the Premises achieves a Debt Service Coverage Ratio of 1.0x for three (3) consecutive monthsConstruction Funds therefor.