On February 11, 2021, MHP Pursuits LLC, a wholly owned subsidiary of Manufactured Housing Properties Inc. (the “Company”), entered into a purchase and sale agreement (the “Purchase Agreement”) with Gilmer and Sons Mobile Homes Sales and Rentals, Inc. for the purchase of ten manufactured housing communities located in Anderson County, South Carolina consisting of 179 sites on approximately 50 acres (the “Property”) for a total purchase price of $5,200,000. On July 16, 2021, MHP Pursuits LLC assigned the Purchase Agreement to the Company’s newly formed wholly owned subsidiary Anderson MHP LLC (“MHP Anderson”), pursuant to an assignment of purchase and sale agreement (the “Assignment”). On July 20, 2021, closing of the Purchase Agreement was completed and MHP Anderson purchased the land and land improvements and Gvest Anderson Homes LLC (“Gvest Anderson”), a wholly owned subsidiary of the Company’s variable interest entity, Gvest Finance LLC, purchased the buildings.

In connection with the closing, on July 20, 2021, MHP Anderson entered into a loan agreement (the “Loan Agreement”) with Vanderbilt Mortgage and Finance, Inc. (the “Lender”) for a loan in the principal amount of $4,160,000 and MHP Anderson issued a promissory note to the Lender in the principal amount of $4,160,000 (the “Note”). The remainder of the purchase price, or $1,040,000, was paid in cash.

The Note bears interest at a rate of 5.21% per annum and matures on July 10, 2026. Payment for the first twenty-four (24) months of the term of the Note shall be interest-only based on the principal outstanding, days in the period, and daily interest rate. Thereafter, principal and interest, in the amount of $22,869 per month, shall be due and payable based on a thirty (30) year amortization schedule. MHP Anderson may prepay the Note in part or in full at any time if it pays a prepayment premium calculated in accordance with the Loan Agreement.

The Loan Agreement contains customary closing conditions, representations and warranties, financial and other covenants and events of default for a loan of this type.

The loan is secured by a mortgage and first priority security interest in the Property and its related assets pursuant to a mortgage, assignment of rents and leases, security agreement and fixture filing that MHP Anderson entered into with the Lender (the “Mortgage”) and a security agreement and assignment of rents that Gvest Anderson entered into with the Lender (the “Security Agreement”). The loan is guaranteed by Gvest Anderson pursuant to a guaranty that it entered into with the Lender (the “Guaranty”) and by Raymond M. Gee, the Company’s Chief Executive Officer.

The foregoing summary of the terms and conditions of the Purchase Agreement, the Assignment, the Loan Agreement, the Note, the Mortgage, the Security Agreement and the Guaranty does not purport to be complete and is qualified in its entirety by reference to the full text of the agreements attached hereto as Exhibits 10.1 to 10.3, which are incorporated herein by reference.