| 1 Loan No.: 2391615 ADDENDUM TO PROMISSORY NOTE ND COMMERCIAL SECURITY AGREEMENT THIS ADDENDUM TO PROMISSORY NOTE AND COMMERCIAL SECURITY AGREEMENT (“Addendum”) is entered into and effective as of June 19, 2024, by and between STERLING PROPERTIES, LLLP, whose address is 4340 18th Avenue S, Suite 200, Fargo, ND 58103 (“Borrower”) and BELL BANK (“Lender”) and modifies and amends (a) that certain Promissory Note dated of even date herewith, made payable by Borrower to the order of Lender (“Note”) and (b) that certain Commercial Security Agreement dated as of the date hereof by Sterling Real Estate Trust ("Grantor") in favor of Lender (“Security Agreement”), each with respect to loans made by Lender to Borrower pursuant to the Loan Agreement. RECITALS: WHEREAS, Borrower and Lender desire to modify and amend certain terms and provisions of the Note and Security Agreement as provided in this Addendum. AGREEMENT: NOW, THEREFORE, in consideration of the mutual agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender agree as follows: 1. Definitions. Capitalized terms that are used and not otherwise defined in this Addendum shall have the meanings respectively ascribed to them in the Note. The Note and Security Agreement and all ancillary transaction documents are collectively referred to as the “Loan Documents.” 2. Amendments to Note. The Note is hereby amended as follows: a. In the section titled “DEFAULT”: i. In the subsection titled “Default in Favor of Third Parties,” the phrase: “any of Borrower’s property or” is hereby deleted. ii. In the subsection titled “Death or Insolvency,” the phrase “or the death of any partner” is hereby deleted. iii. In the subsection titled “Events Affecting Guarantor,” the phrase: “dies or becomes incompetent, or” is hereby deleted. iv. In the subsection titled “Events Affecting General Partner of Borrower,” the phrase: “or any general partner dies or becomes incompetent” is hereby deleted. 3. Amendments to Security Agreement. The Security Agreement is hereby amended as follows: a. In the section titled “GRANTOR’S REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL:” i. In the subsection titled “Notices to Lender,” item (3) is deleted in its entirety. ii. In the subsection titled “Location of Collateral,” the following provision is deleted in its entirety: “Upon Lender’s request, Grantor will deliver to Lender in form satisfactory to Lender a schedule of real properties and Collateral locations relating to Grantor’s operations, including without limitation the following: (1) all real property Grantor owns or is purchasing; (2) all real property Grantor is renting or leasing; (3) all storage facilities Grantor owns, rents, leases or uses; and (4) all other properties where Collateral is or may be located.” |
