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  STACK METHOD — DRAFT TEMPLATE — NOT LEGAL ADVICE — ATTORNEY REVIEW REQUIRED
  Provided "as is," for education only. No liability accepted. [BRACKETS] = fill in.
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                 BALLOON-EXTENSION PROTECTION ADDENDUM

This Addendum amends the [Security Agreement (Doc 04) / Operating Agreement (Doc 05)
/ Promissory Note (Doc 07)] dated [DATE] for [PROPERTY ADDRESS].

1.  PURPOSE. To protect BOTH parties if the Property cannot be refinanced cleanly at
    the Balloon Date through no fault or bad faith of the Company — so the Seller is
    made whole through an orderly refinance rather than a forced, below-value sale,
    and the Company's position is preserved.

2.  QUALIFYING EVENTS. Any of the following that materially prevents a refinance that
    would pay the Seller in full at the Balloon Date:
    (a) sustained vacancy or cash-flow shortfall reducing DSCR below [__];
    (b) a major unexpected casualty or repair (> $[__]) harming income/value;
    (c) a market decline / appraisal coming in below the amount needed to refinance
        (depreciation or deflation in value).

3.  EXTENSION. On a Qualifying Event, the Balloon Date automatically extends by
    [24] months, with up to one further [12]-month extension (total [36] months),
    provided the Company:
    (a) gives the Seller written notice with evidence of the Qualifying Event before
        the original Balloon Date;
    (b) keeps all Obligated Payments (taxes, insurance, HOA, senior loan, and any
        Seller payments) current during the extension;
    (c) uses commercially reasonable efforts to refinance and pay the Seller as soon
        as feasible; and
    (d) [accrues an additional return of [__]% to the Seller during the extension].

4.  NO ABUSE. The extension may not be used to delay payment absent a genuine
    Qualifying Event. Failure to meet the conditions in Section 3 ends the extension
    and the default/cure remedies apply.

5.  SELLER ACKNOWLEDGEMENT. The Seller understands an extension means waiting longer
    to be paid in full, and that this protection exists to avoid a forced sale and to
    preserve the prospect of full payment. (See the Risk and Closing modules.)

6.  ALL OTHER TERMS UNCHANGED.

Company (by Managing Member): ____________________  Date: ______
Seller: ____________________  Date: ______