Exhibit 10.22


 


Marquis at Crown Ridge


f/k/a The Estates at Crown Ridge


 


FIRST AMENDMENT TO MULTIFAMILY LOAN AND
SECURITY AGREEMENT


AND OTHER LOAN DOCUMENTS


(Multipurpose)


 


This FIRST AMENDMENT
TO MULTIFAMILY LOAN AND SECURITY AGREEMENT AND OTHER LOAN DOCUMENTS (this “Amendment”) dated as of June 9, 2017,
is executed by and between BR CWS CROWN RIDGE OWNER, LLC, a Delaware limited liability company (“Borrower”)
and FANNIE MAE, a corporation duly organized under the Federal National Mortgage Association Charter Act, as amended,
12 U.S.C. §1716 et seq. and duly organized and existing under the laws of the United States (“Fannie Mae”).


 


RECITALS:


 


A.           Pursuant
to that certain Multifamily Loan and Security Agreement dated as of May 27, 2014 (the “Effective Date”), executed
by and between BRE MF Crown Ridge LLC, a Delaware limited liability company (“Original Borrower”) and Wells
Fargo Bank, National Association, a national banking association (“Prior Lender”) (as amended, restated, replaced,
supplemented, or otherwise modified from time to time, the “Loan Agreement”), Prior Lender made a loan to Original
Borrower in the original principal amount of Thirty Million Ninety-One Thousand and 00/100 Dollars ($30,091,000.00) (the “Mortgage
Loan”), as evidenced by that certain Multifamily Note dated as of the Effective Date, executed by Original Borrower and
made payable to Prior Lender in the amount of the Mortgage Loan (as amended, restated, replaced, supplemented, or otherwise modified
from time to time, the “Note”).


 


B.           In
addition to the Loan Agreement, the Mortgage Loan and the Note are also secured by, among other things, a certain Multifamily Mortgage,
Deed of Trust, or Deed to Secure Debt dated as of the Effective Date (as amended, restated, replaced, supplemented or otherwise
modified from time to time, the “Security Instrument”).


 


C.           Fannie
Mae is the successor-in-interest to the Prior Lender under the Loan Agreement, the holder of the Note and the mortgagee or beneficiary
under the Security Instrument.


 


D.           Prior
Lender services the Mortgage Loan on behalf of Fannie Mae.


 


E.           Pursuant
to the Assumption and Release Agreement dated as of the date hereof (“Assumption Agreement”) and this Amendment,
Borrower has agreed to ratify and assume all of Original Borrower’s rights, obligations, and liabilities created or arising
under the Loan Documents, as those rights, obligations and liabilities may have been modified in writing by this Amendment, the
Assumption Agreement or otherwise (“Assumption”).


 


F.           In
consideration of Fannie Mae’s consent to the Assumption, Borrower and Fannie Mae have agreed to make certain amendments to
the Loan Agreement.


 


NOW, THEREFORE, in
consideration of the mutual promises contained in this Amendment and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Borrower and Fannie Mae agree as follows:


 




    	First Amendment to Multifamily Loan and
	 	 
	Security Agreement (Multipurpose)
	Form 6601
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AGREEMENTS:


 


		Section 1.	Recitals.



 


The recitals set forth
above are incorporated herein by reference as if fully set forth in the body of this Amendment.


 


		Section 2.	Defined Terms.



 


Capitalized terms used
and not specifically defined herein shall have the meanings given to such terms in the Loan Agreement.


 


		Section 3.	Amendment and Modification of Loan Documents.



 


(a)          Amendment
and Modification of Loan Agreement. The Loan Agreement is hereby amended and restated in its entirety in the form attached
as Exhibit A.


 


(b)          Amendment
and Modification of Environmental Indemnity Agreement. The Environmental Indemnity Agreement dated as of May 27, 2014 is modified
as shown on the attached Exhibit B.


 


		Section 4.	Reserved.



 


		Section 5.	Authorization.



 


Borrower represents
and warrants that Borrower is duly authorized to execute and deliver this Amendment and is and will continue to be duly authorized
to perform its obligations under the Loan Agreement, as amended hereby.


 


		Section 6.	Compliance with Loan Documents.



 


The representations
and warranties set forth in the Loan Documents, as amended hereby, are true and correct with the same effect as if such representations
and warranties had been made on the date hereof, except for such changes as are specifically permitted under the Loan Documents.
In addition, Borrower has complied with and is in compliance with all of the covenants set forth in the Loan Documents, as amended
hereby.


 


		Section 7.	No Event of Default.



 


Borrower represents
and warrants that, to Borrower’s knowledge after due inquiry and investigation, as of the date hereof, no Event of Default
under the Loan Documents, as amended hereby, or event or condition which, with the giving of notice or the passage of time, or
both, would constitute an Event of Default, has occurred and is continuing.


 


		Section 8.	Costs.



 


Borrower agrees to
pay all fees and costs (including attorneys’ fees) incurred by Fannie Mae and any Loan Servicer in connection with this Amendment.


 




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	Security Agreement (Multipurpose)
	Form 6601
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		Section 9.	Continuing Force and Effect of Loan Documents.



 


Except as specifically
modified or amended by the terms of this Amendment, all other terms and provisions of the Loan Agreement and the other Loan Documents
are incorporated by reference herein and in all respects shall continue in full force and effect. Borrower, by execution of this
Amendment, hereby reaffirms, assumes and binds itself to all of the obligations, duties, rights, covenants, terms and conditions
that are contained in the Loan Agreement and the other Loan Documents, including Section 15.01 (Governing Law; Consent to Jurisdiction
and Venue), Section 15.04 (Counterparts), Section 15.07 (Severability; Entire Agreement; Amendments) and Section 15.08 (Construction)
of the Loan Agreement.


 


		Section 10.	Counterparts.



 


This Amendment may
be executed in any number of counterparts with the same effect as if the parties hereto had signed the same document and all such
counterparts shall be construed together and shall constitute one instrument.


 


[Remainder of Page Intentionally Blank]


 




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	Security Agreement (Multipurpose)
	Form 6601
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IN WITNESS
WHEREOF, Borrower and Fannie Mae have signed and delivered this Amendment under seal (where applicable) or have caused this Amendment
to be signed and delivered under seal (where applicable) by their duly authorized representatives. Where applicable law so provides,
Borrower and Fannie Mae intend that this Amendment shall be deemed to be signed and delivered as a sealed instrument.


 


	 	BORROWER
	 	 
	 	BR CWS CROWN RIDGE OWNER, LLC, a Delaware limited liability company
	 	 	 
	 	By:	BR CWS 2017 Portfolio N, LLC, a Delaware limited liability company, its sole member
	 	 	 
	 	 	By: BR CWS Portfolio Member, LLC, a Delaware limited liability company, its manager
	 	 	 	 
	 	 	By:	/s/ Jordan B Ruddy
	 	 	 	Jordan B Ruddy
	 	 	 	Authorized Signatory


 




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	Security Agreement (Multipurpose)
	Form 6601
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	 	FANNIE MAE
	 	 	 
	 	By:	Wells Fargo Bank, National Association, a national banking association, its Attorney-in-Fact
	 	 	 	 
	 	 	By:	/s/ Christian Adrian
	 	 	 	Christian Adrian Managing
	 	 	 	Director


 




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	Security Agreement (Multipurpose)
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EXHIBIT A


 


Amended and Restated Multifamily Loan and
Security Agreement


 


See Attached


 




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AMENDED
AND RESTATED


MULTIFAMILY
LOAN AND SECURITY AGREEMENT


(NON-RECOURSE)


 


BY AND
BETWEEN


 


BR CWS
CROWN RIDGE OWNER, LLC,


a Delaware
limited liability company


 


AND


 


FANNIE
MAE,


a corporation
duly organized under the


Federal National
Mortgage Association Charter Act,

as amended, 12 U.S.C. § 1716 et seq., and duly organized


and existing
under the laws of the United States


 


DATED
AS OF 


 


June 9, 2017


 


Fannie Mae.


 




     


     


    

 


TABLE OF CONTENTS


 


	ARTICLE 1 - DEFINITIONS; SUMMARY OF MORTGAGE LOAN TERMS	2
	 	 
	SECTION 1.01 DEFINED TERMS	2
	SECTION 1.02 SCHEDULES, EXHIBITS, AND ATTACHMENTS INCORPORATED	2
	 	 
	ARTICLE 2 - GENERAL MORTGAGE LOAN TERMS	2
	 	 
	SECTION 2.01 MORTGAGE LOAN ORIGINATION AND SECURITY	2
	(a)	Making of Mortgage Loan	2
	(b)	Security for Mortgage Loan	2
	(c)	Protective Advances	2
	SECTION 2.02 PAYMENTS ON MORTGAGE LOAN.	3
	(a)	Debt Service Payments	3
	(b)	Capitalization of Accrued But Unpaid Interest	4
	(c)	Late Charges	4
	(d)	Default Rate	4
	(e)	Address for Payments	5
	(f)	Application of Payments	6
	SECTION 2.03 LOCKOUT/PREPAYMENT	6
	(a)	Prepayment; Prepayment Lockout; Prepayment Premium	6
	(b)	Voluntary Prepayment in Full	6
	(c)	Acceleration of Mortgage Loan	7
	(d)	Application of Collateral	7
	(e)	Casualty and Condemnation	7
	(f)	No Effect on Payment Obligations	7
	(g)	Loss Resulting from Prepayment	8
	 	 
	ARTICLE 3 - PERSONAL LIABILITY	8
	 	 
	SECTION 3.01 NON-RECOURSE MORTGAGE LOAN; EXCEPTIONS	8
	SECTION 3.02 PERSONAL LIABILITY OF BORROWER (EXCEPTIONS TO NON-RECOURSE PROVISION)	8
	(a)	Personal Liability Based on Lender’s Loss	8
	(b)	Full Personal Liability for Mortgage Loan	9
	SECTION 3.03 PERSONAL LIABILITY FOR INDEMNITY OBLIGATIONS.	10
	SECTION 3.04 LENDER’S RIGHT TO FOREGO RIGHTS AGAINST MORTGAGED PROPERTY	10
	 	 
	ARTICLE 4 - BORROWER STATUS	10
	 	 
	SECTION 4.01 REPRESENTATIONS AND WARRANTIES	10
	(a)	Due Organization and Qualification	11
	(b)	Location	11
	(c)	Power and Authority	11
	(d)	Due Authorization	11
	(e)	Valid and Binding Obligations	11
	(f)	Effect of Mortgage Loan on Borrower’s Financial Condition.	12
	(g)	Economic Sanctions, Anti-Money Laundering, and Anti-Corruption	12
	(h)	Borrower Single Asset Status	12
	(i)	No Bankruptcies or Judgments	14
	(j)	No Actions or Litigation	14
	(k)	Payment of Taxes, Assessments, and Other Charges	14


 




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	(1)	Not a Foreign Person	15
	(m)	ERISA	15
	(n)	Default Under Other Obligations	15
	(o)	Prohibited Person	15
	(p)	No Contravention	15
	(q)	Lockbox Arrangement	16
	SECTION 4.02 COVENANTS	16
	(a)	Maintenance of Existence; Organizational Documents	16
	(b)	Economic Sanctions, Anti-Money Laundering, and Anti-Corruption	16
	(c)	Payment of Taxes, Assessments, and Other Charges	17
	(d)	Borrower Single Asset Status	17
	(e)	ERISA	18
	(f)	Notice of Litigation or Insolvency	19
	(g)	Payment of Costs, Fees, and Expenses	19
	(h)	Restrictions on Distributions	19
	(i)	Lockbox Arrangement	19
	 	 
	ARTICLE 5 - THE MORTGAGE LOAN	20
	 	 
	SECTION 5.01 REPRESENTATIONS AND WARRANTIES	20
	(a)	Receipt and Review of Loan Documents	20
	(b)	No Default	20
	(c)	No Defenses	20
	(d)	Loan Document Taxes	20
	SECTION 5.02 COVENANTS	20
	(a)	Ratification of Covenants; Estoppels; Certifications	20
	(b)	Further Assurances	21
	(c)	Sale of Mortgage Loan	21
	(d)	Limitations on Further Acts of Borrower	22
	(e)	Financing Statements; Record Searches	22
	(f)	Loan Document Taxes	23
	 	 
	ARTICLE 6 - PROPERTY USE, PRESERVATION, AND MAINTENANCE	23
	 	 
	SECTION 6.01 REPRESENTATIONS AND WARRANTIES	23
	(a)	Compliance with Law; Permits and Licenses	23
	(b)	Property Characteristics	23
	(c)	Property Ownership	24
	(d)	Condition of the Mortgaged Property	24
	(e)	Personal Property	24
	SECTION 6.02 COVENANTS	24
	(a)	Use of Property	24
	(b)	Property Maintenance	25
	(c)	Property Preservation	26
	(d)	Property Inspections.	27
	(e)	Compliance with Laws	27
	SECTION 6.03 MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING THE PROPERTY	28
	(a)	Property Management	28
	(b)	Subordination of Fees to Affiliated Property Managers	28
	(c)	Property Condition Assessment	28


 




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	ARTICLE 7 - LEASES AND RENTS	28
	 	 
	SECTION 7.01 REPRESENTATIONS AND WARRANTIES	28
	(a)	Prior Assignment of Rents	28
	(b)	Prepaid Rents	29
	SECTION 7.02 COVENANTS	29
	(a)	Leases	29
	(b)	Commercial Leases	29
	(c)	Payment of Rents	30
	(d)	Assignment of Rents	31
	(e)	Further Assignments of Leases and Rents	31
	(f)	Options to Purchase by Tenants	31
	SECTION 7.03 MORTGAGE LOAN ADMINISTRATION REGARDING LEASES AND RENTS.	31
	(a)	Material Commercial Lease Requirements	31
	(b)	Residential Lease Form	32
	 	 
	ARTICLE 8 - BOOKS AND RECORDS; FINANCIAL REPORTING	32
	 	 
	SECTION 8.01 REPRESENTATIONS AND WARRANTIES	32
	(a)	Financial Information	32
	(b)	No Change in Facts or Circumstances	32
	SECTION 8.02 COVENANTS	32
	(a)	Obligation to Maintain Accurate Books and Records	32
	(b)	Items to Furnish to Lender	33
	(c)	Audited Financials	35
	(d)	Delivery of Books and Records	35
	SECTION 8.03 MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING BOOKS AND RECORDS AND FINANCIAL REPORTING	36
	(a)	Lender’s Right to Obtain Audited Books and Records	36
	(b)	Credit Reports; Credit Score	36
	 	 
	ARTICLE 9 - INSURANCE	36
	 	 
	SECTION 9.01 REPRESENTATIONS AND WARRANTIES	 36
	(a)	Compliance with Insurance Requirements	36
	(b)	Property Condition	37
	SECTION 9.02 COVENANTS	37
	(a)	Insurance Requirements	37
	(b)	Delivery of Policies, Renewals, Notices, and Proceeds	37
	SECTION 9.03 MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING INSURANCE	38
	(a)	Lender’s Ongoing Insurance Requirements	38
	(b)	Application of Proceeds on Event of Loss	39
	(c)	Payment Obligations Unaffected	41
	(d)	Foreclosure Sale	41
	(e)	Appointment of Lender as Attorney-In-Fact	41
	 	 
	ARTICLE 10 - CONDEMNATION	41
	 	 
	SECTION 10.01 REPRESENTATIONS AND WARRANTIES	41
	(a)	Prior Condemnation Action	41
	(b)	Pending Condemnation Actions	41


 




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	SECTION 10.02 COVENANTS	42
	(a)	Notice of Condemnation	42
	(b)	Condemnation Proceeds	42
	SECTION 10.03 MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING CONDEMNATION	42
	(a)	Application of Condemnation Awards	42
	(b)	Payment Obligations Unaffected	42
	(c)	Appointment of Lender as Attorney-In-Fact	42
	(d)	Preservation of Mortgaged Property	43
	 	 
	ARTICLE 11 - LIENS, TRANSFERS, AND ASSUMPTIONS	43
	 	 
	SECTION 1 1.01 REPRESENTATIONS AND WARRANTIES	43
	(a)	No Labor or Materialmen’s Claims	43
	(b)	No Other Interests	43
	SECTION 1 I .02 COVENANTS	43
	(a)	Liens; Encumbrances	43
	(b)	Transfers	44
	(c)	No Other Indebtedness	47
	(d)	No Mezzanine Financing or Preferred Equity.	47
	SECTION 11.03 MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING LIENS, TRANSFERS, AND ASSUMPTIONS	47
	(a)	Assumption of Mortgage Loan	47
	(b)	Transfers to Key Principal-Owned Affiliates or Guarantor-Owned Affiliates	49
	(c)	Estate Planning	49
	(d)	Termination or Revocation of Trust	50
	(e)	Death of Key Principal or Guarantor; Transfer Due to Death	50
	(f)	Bankruptcy of Guarantor	52
	(g)	Further Conditions to Transfers and Assumption	53
	(h)	Additional Conditionally Permitted Transfers	53
	SECTION 11.04 PERMITTED TRANSFERS AND PERMITTED PROPERTY TRANSFERS TO SHERWOOD AFFILIATES	57
	(a)	Requirements for Permitted Transfers and Permitted Property Tranfers	57
	(b)	Permitted Transfer to a Sherwood Affiliate	58
	(c)	Permitted Property Transfer to Sherwood Affiliates	58
	SECTION 11.05 PERMITTED TRANSFERS AND PERMITTED PROPERTY TRANSFERS BY NON- SHERWOOD CO-TENANT	
	(a)	Permitted Transfer by a Non-Sherwood Co-Tenant to an Affliate of a Non-Sherwood Co-Tenant	
	 	 
	ARTICLE 12 - IMPOSITIONS	59
	 	 
	SECTION 12.01 REPRESENTATIONS AND WARRANTIES	59
	(a)	Payment of Taxes, Assessments, and Other Charges	59
	SECTION 12.02 COVENANTS	59
	(a)	Imposition Deposits, Taxes, and Other Charges	59
	SECTION 12.03 MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING IMPOSITIONS	60
	(a)	Maintenance of Records by Lender	60
	(b)	Imposition Accounts	60
	(c)	Payment of Impositions; Sufficiency of Imposition Deposits	60
	(d)	Imposition Deposits Upon Event of Default	61
	(e)	Contesting Impositions	61


 




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	(f) 	Release to Borrower	61
	 	 
	ARTICLE 13 - REPLACEMENT RESERVE AND REPAIRS	61
	 	 
	SECTION 13.01 COVENANTS	61
	(a)	Initial Deposits to Replacement Reserve Account and Repairs Escrow Account	61
	(b)	Monthly Replacement Reserve Deposits	62
	(c)	Payment for Replacements and Repairs	62
	(d)	Assignment of Contracts for Replacements and Repairs	62
	(e)	Indemnification	62
	(f)	Amendments to Loan Documents	62
	(g)	Administrative Fees and Expenses	63
	SECTION 13.02 MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING RESERVES	63
	(a)	Accounts, Deposits, and Disbursements	63
	(b)	Approvals of Contracts; Assignment of Claims	70
	(c)	Delays and Workmanship	70
	(d)	Appointment of Lender as Attorney-In-Fact	70
	(e)	No Lender Obligation	70
	(f)	No Lender Warranty	71
	 	 
	ARTICLE 14 - DEFAULTS/REMEDIES	71
	 	 
	SECTION 14.01 EVENTS OF DEFAULT	71
	(a)	Automatic Events of Default	71
	(b)	Events of Default Subject to a Specified Cure Period	72
	(c)	Events of Default Subject to Extended Cure Period	73
	SECTION 14.02 REMEDIES	73
	(a)	Acceleration; Foreclosure	73
	(b)	Loss of Right to Disbursements from Collateral Accounts.	73
	(c)	Remedies Cumulative	74
	SECTION 14.03 ADDITIONAL LENDER RIGHTS; FORBEARANCE	74
	(a)	No Effect Upon Obligations	74
	(b)	No Waiver of Rights or Remedies	75
	(c)	Appointment of Lender as Attorney-In-Fact	75
	(d)	Borrower Waivers	76
	SECTION 14.04 WAIVER OF MARSHALING	77
	 	 
	ARTICLE 15 - MISCELLANEOUS	77
	 	 
	SECTION 15.01 GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE	77
	(a)	Governing Law	77
	(b)	Venue	77
	SECTION 15.02 NOTICE	78
	(a)	Process of Serving Notice	78
	(b)	Change of Address	78
	(c)	Default Method of Notice	78
	(d)	Receipt of Notices	78
	SECTION 15.03 SUCCESSORS AND ASSIGNS BOUND; SALE OF MORTGAGE LOAN	79
	(a)	Binding Agreement	79
	(b)	Sale of Mortgage Loan; Change of Servicer	79


 




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	SECTION 15.04 COUNTERPARTS	79
	SECTION 15.05 JOINT AND SEVERAL (OR SOLIDARY) LIABILITY	79
	SECTION 15.06 RELATIONSHIP OF PARTIES; No THIRD PARTY BENEFICIARY	79
	(a)	Solely Creditor and Debtor	79
	(b)	No Third Party Beneficiaries	79
	SECTION 15.07 SEVERABILITY; ENTIRE AGREEMENT; AMENDMENTS	80
	SECTION 15.08 CONSTRUCTION	80
	SECTION 15.09 MORTGAGE LOAN SERVICING	81
	SECTION 15.10 DISCLOSURE OF INFORMATION	81
	SECTION 15.11 WAIVER; CONFLICT	81
	SECTION 15.12 No RELIANCE	81
	SECTION 15.13 SUBROGATION	82
	SECTION 15.14 COUNTING OF DAYS	82
	SECTION 15.15 REVIVAL AND REINSTATEMENT OF INDEBTEDNESS	82
	SECTION 15.16 TIME IS OF THE ESSENCE	. 82
	SECTION 15.17 FINAL AGREEMENT	82
	SECTION 15.18 WAIVER OF TRIAL BY JURY	83


 




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SCHEDULES & EXHIBITS


 


	Schedules	 	 
	Schedule 1	Definitions Schedule (required)	Form 6101.SARM
	Schedule 2	Summary of Loan Terms (required)	Form 6102.SARM
	Schedule 2	Addenda to Schedule 2 - Summary of Loan Terms (Replacement Reserve Deposits — Deposits Partially or Fully Waived)	Form 6102.04
	Schedule 3	Interest Rate Type Provisions (required)	Form 6103.SARM
	Schedule 4	Prepayment Premium Schedule (required)	Form 6104.11
	Schedule 5	Required Replacement Schedule (required)	Form 6001.NR
	Schedule 6	Required Repair Schedule (required)	Form 6001.NR
	Schedule 7	Exceptions to Representations and Warranties Schedule (required)	Form 6001.NR


 


	Exhibits 	 	 
	Exhibit A	Modifications to Multifamily Loan and Security Agreement (Co-Tenants)	Form 6232 
	Exhibit B	Modifications to Multifamily Loan and Security Agreement (Replacement Reserve — Deposits
    Partially or Fully Waived)	Form 6220
	Exhibit C	Modifications to Multifamily Loan and Security Agreement (Waiver of Imposition Deposits)	Form 6228 


 




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Marquis at Crown Ridge


f/k/a The Estates at Crown Ridge


 


AMENDED AND
RESTATED


MULTIFAMILY
LOAN AND SECURITY AGREEMENT

(Non-Recourse)


 


This AMENDED AND RESTATED
MULTIFAMILY LOAN AND SECURITY AGREEMENT (as amended, restated, replaced, supplemented or otherwise modified from time to time,
the “Loan Agreement”) is made as of the Effective Date (as hereinafter defined) by and between BR CWS CROWN RIDGE OWNER,
LLC, a Delaware limited liability company (“Borrower”), and FANNIE MAE, a corporation duly organized under the Federal
National Mortgage Association Charter Act, as amended, 12 U.S.C. § 1716 et seq., and duly organized and existing under the
laws of the United States (“Lender”).


 


RECITALS:


 


WHEREAS, Wells Fargo
Bank, National Association, a national banking association (“Prior Lender”) made the Mortgage Loan (as hereinafter
defined) to BRE MF Crown Ridge LLC, a Delaware limited liability company (“Original Borrower”) pursuant to that certain
Multifamily Loan and Security Agreement dated as of the Effective Date, executed by and between Original Borrower and Prior Lender
(as amended, restated, replaced, supplemented, or otherwise modified from time to time, the “Original Loan Agreement”),
as evidenced by the Note (as hereinafter defined).


 


WHEREAS, in addition
to the Original Loan Agreement, the Mortgage Loan and the Note are also secured by, among other things, a certain Multifamily Mortgage,
Deed of Trust, or Deed to Secure Debt dated as of the Effective Date (as amended, restated, replaced, supplemented or otherwise
modified from time to time, the “Security Instrument”).


 


WHEREAS, Lender is
the successor-in-interest to the Prior Lender under the Original Loan Agreement, the holder of the Note and the mortgagee or beneficiary
under the Security Instrument.


 


WHEREAS, Prior Lender services the Mortgage Loan on
behalf of Lender.


 


WHEREAS, Pursuant to
the Assumption and Release Agreement dated as of the date hereof (“Assumption Agreement”), Borrower has agreed to ratify
and assume all of Original Borrower’s rights, obligations, and liabilities created or arising under the Loan Documents, as
those rights, obligations and liabilities may have been modified in writing by the Assumption Agreement and all other transfer
documents executed in connection with Borrower’s assumption of the Mortgage Loan (the “Assumption”).


 


NOW, THEREFORE, in
consideration of Lender’s consent to the Assumption and other good and valuable consideration, the receipt and adequacy of
which are hereby conclusively acknowledged, the parties hereby agree to amend and restate the Original Loan Agreement as follows:


 




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AGREEMENTS:


 


ARTICLE 1
- DEFINITIONS; SUMMARY OF MORTGAGE LOAN TERMS


 


Section 1.01         Defined
Terms.


 


Capitalized terms not
otherwise defined in the body of this Loan Agreement shall have the meanings set forth in the Definitions Schedule attached as
Schedule 1 to this Loan Agreement.


 


Section 1.02         Schedules,
Exhibits, and Attachments Incorporated.


 


The schedules, exhibits,
and any other addenda or attachments are incorporated fully into this Loan Agreement by this reference and each constitutes a substantive
part of this Loan Agreement.


 


ARTICLE 2
- GENERAL MORTGAGE LOAN TERMS


 


Section 2.01         Mortgage
Loan Origination and Security.


 


(a)          Making
of Mortgage Loan.


 


Subject to the terms
and conditions of this Loan Agreement and the other Loan Documents, Lender hereby makes the Mortgage Loan to Borrower, and Borrower
hereby accepts the Mortgage Loan from Lender. Borrower covenants and agrees that it shall:


 


(1)         pay
the Indebtedness, including the Prepayment Premium, if any (whether in connection with any voluntary prepayment or in connection
with an acceleration by Lender of the Indebtedness), in accordance with the terms of this Loan Agreement and the other Loan Documents;
and


 


(2)         perform,
observe, and comply with this Loan Agreement and all other provisions of the other Loan Documents.


 


(b)          Security
for Mortgage Loan.


 


The Mortgage Loan is
made pursuant to this Loan Agreement, is evidenced by the Note, and is secured by the Security Instrument, this Loan Agreement,
and the other Loan Documents that are expressly stated to be security for the Mortgage Loan.


 


(c)          Protective
Advances.


 


As provided in the
Security Instrument, Lender may take such actions or disburse such funds as Lender reasonably deems necessary to perform the obligations
of Borrower under this Loan Agreement and the other Loan Documents and to protect Lender’s interest in the Mortgaged Property.


 




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Section 2.02         Payments
on Mortgage Loan.


 


(a)          Debt
Service Payments.


 


(1)         Short
Month Interest.


 


If the date
the Mortgage Loan proceeds are disbursed is any day other than the first day of the month, interest for the period beginning on
the disbursement date and ending on and including the last day of the month in which the disbursement occurs shall be payable by
Borrower on the date the Mortgage Loan proceeds are disbursed. In the event that the disbursement date is not the same as the Effective
Date, then:


 


(A)         the
disbursement date and the Effective Date must be in the same month, and


 


(B)         the
Effective Date shall not be the first day of the month.


 


(2)         Interest
Accrual and Computation.


 


Except as
provided in Section 2.02(a)(1), interest shall be paid in arrears. Interest shall accrue as provided in the Schedule of Interest
Rate Type Provisions and shall be computed in accordance with the Interest Accrual Method. If the Interest Accrual Method is “Actual/360,”
Borrower acknowledges and agrees that the amount allocated to interest for each month will vary depending on the actual number
of calendar days during such month.


 


(3)         Monthly
Debt Service Payments.


 


Consecutive
monthly debt service installments (comprised of either interest only or principal and interest, depending on the Amortization Type),
each in the amount of the applicable Monthly Debt Service Payment, shall be due and payable on the First Payment Date, and on each
Payment Date thereafter until the Maturity Date, at which time all Indebtedness shall be due. Any regularly scheduled Monthly Debt
Service Payment that is received by Lender before the applicable Payment Date shall be deemed to have been received on such Payment
Date solely for the purpose of calculating interest due. All payments made by Borrower under this Loan Agreement shall be made
without set-off, counterclaim, or other defense.


 


(4)         Payment
at Maturity.


 


The unpaid
principal balance of the Mortgage Loan, any Accrued Interest thereon and all other Indebtedness shall be due and payable on the
Maturity Date.


 


(5)         Interest
Rate Type.


 


See the Schedule
of Interest Rate Type Provisions for additional provisions, if any, specific to the Interest Rate Type.


 




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(b)          Capitalization
of Accrued But Unpaid Interest.


 


Any accrued and unpaid
interest on the Mortgage Loan remaining past due for thirty (30) days or more may, at Lender’s election, be added to and
become part of the unpaid principal balance of the Mortgage Loan.


 


(c)          Late
Charges.


 


(1)          If
any Monthly Debt Service Payment due hereunder is not received by Lender within ten (10) days (or fifteen (15) days for any Mortgaged
Property located in Mississippi or North Carolina to comply with applicable law) after the applicable Payment Date, or any amount
payable under this Loan Agreement (other than the payment due on the Maturity Date for repayment of the Mortgage Loan in full)
or any other Loan Document is not received by Lender within ten (10) days (or fifteen (15) days for any Mortgaged Property located
in Mississippi or North Carolina to comply with applicable law) after the date such amount is due, inclusive of the date on which
such amount is due, Borrower shall pay to Lender, immediately without demand by Lender, the Late Charge.


 


The Late Charge is payable in
addition to, and not in lieu of, any interest payable at the Default Rate pursuant to Section 2.02(d).


 


(2)          Borrower
acknowledges and agrees that:


 


(A)         its
failure to make timely payments will cause Lender to incur additional expenses in servicing and processing the Mortgage Loan;


 


(B)         it
is extremely difficult and impractical to determine those additional expenses;


 


(C)         Lender
is entitled to be compensated for such additional expenses; and


 


(D)         the
Late Charge represents a fair and reasonable estimate, taking into account all circumstances existing on the date hereof, of the
additional expenses Lender will incur by reason of any such late payment.


 


(d)          Default
Rate.


 


(1)          Default
interest shall be paid as follows:


 


(A)         If
any amount due in respect of the Mortgage Loan (other than amounts due on the Maturity Date) remains past due for thirty (30) days
or more, interest on such unpaid amount(s) shall accrue from the date payment is due at the Default Rate and shall be payable upon
demand by Lender.


 


(B)         If
any Indebtedness due is not paid in full on the Maturity Date, then interest shall accrue at the Default Rate on all such unpaid
amounts from the Maturity Date until fully paid and shall be payable upon demand by Lender.


 




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Absent a demand by Lender, any
such amounts shall be payable by Borrower in the same manner as provided for the payment of Monthly Debt Service Payments. To the
extent permitted by applicable law, interest shall also accrue at the Default Rate on any judgment obtained by Lender against Borrower
in connection with the Mortgage Loan. To the extent Borrower or any other Person is vested with a right of redemption, interest
shall continue to accrue at the Default Rate during any redemption period until such time as the Mortgaged Property has been redeemed.


 


(2)         Borrower
acknowledges and agrees that:


 


(A)         its
failure to make timely payments will cause Lender to incur additional expenses in servicing and processing the Mortgage Loan; and


 


(B)         in
connection with any failure to timely pay all amounts due in respect of the Mortgage Loan on the Maturity Date, or during the time
that any amount due in respect of the Mortgage Loan is delinquent for more than thirty (30) days:


 


(i)          Lender’s
risk of nonpayment of the Mortgage Loan will be materially increased;


 


(ii)         Lender’s
ability to meet its other obligations and to take advantage of other investment opportunities will be adversely impacted;


 


(iii)        Lender
will incur additional costs and expenses arising from its loss of the use of the amounts due;


 


(iv)        it
is extremely difficult and impractical to determine such additional costs and expenses;


 


(v)         Lender
is entitled to be compensated for such additional risks, costs, and expenses; and


 


(vi)        the
increase from the Interest Rate to the Default Rate represents a fair and reasonable estimate of the additional risks, costs, and
expenses Lender will incur by reason of Borrower’s delinquent payment and the additional compensation Lender is entitled
to receive for the increased risks of nonpayment associated with a delinquency on the Mortgage Loan (taking into account all circumstances
existing on the Effective Date).


 


(e)          Address
for Payments.


 


All payments due pursuant
to the Loan Documents shall be payable at Lender’s Payment Address, or such other place and in such manner as may be designated
from time to time by written notice to Borrower by Lender.


 




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(f)          Application
of Payments.


 


If at any time Lender
receives, from Borrower or otherwise, any payment in respect of the Indebtedness that is less than all amounts due and payable
at such time, then Lender may apply such payment to amounts then due and payable in any manner and in any order determined by Lender
or hold in suspense and not apply such payment at Lender’s election. Neither Lender’s acceptance of a payment that
is less than all amounts then due and payable, nor Lender’s application of, or suspension of the application of, such payment,
shall constitute or be deemed to constitute either a waiver of the unpaid amounts or an accord and satisfaction. Notwithstanding
the application of any such payment to the Indebtedness, Borrower’s obligations under this Loan Agreement and the other Loan
Documents shall remain unchanged.


 


Section 2.03        Lockout/Prepayment.


 


(a)          Prepayment;
Prepayment Lockout; Prepayment Premium.


 


(1)         Borrower
shall not make a voluntary full or partial prepayment on the Mortgage Loan during any Prepayment Lockout Period nor shall Borrower
make a voluntary partial prepayment at any time. Except as expressly provided in this Loan Agreement (including as provided in
the Prepayment Premium Schedule), a Prepayment Premium calculated in accordance with the Prepayment Premium Schedule shall be payable
in connection with any prepayment of the Mortgage Loan.


 


(2)         If
a Prepayment Lockout Period applies to the Mortgage Loan, and during such Prepayment Lockout Period Lender accelerates the unpaid
principal balance of the Mortgage Loan or otherwise applies collateral held by Lender to the repayment of any portion of the unpaid
principal balance of the Mortgage Loan, the Prepayment Premium shall be due and payable and equal to the amount obtained by multiplying
the percentage indicated (if at all) in the Prepayment Premium Schedule by the amount of principal being prepaid at the time of
such acceleration or application.


 


(b)          Voluntary
Prepayment in Full.


 


At any time after the
expiration of any Prepayment Lockout Period, Borrower may voluntarily prepay the Mortgage Loan in full on a Permitted Prepayment
Date so long as:


 


(1)         Borrower
delivers to Lender a Prepayment Notice specifying the Intended Prepayment Date not more than sixty (60) days, but not less than
thirty (30) days (if given via U.S. Postal Service) or twenty (20) days (if given via facsimile, e-mail, or overnight courier)
prior to such Intended Prepayment Date; and


 


(2)         Borrower
pays to Lender an amount equal to the sum of:


 


(A)         the
entire unpaid principal balance of the Mortgage Loan; plus


 


(B)         all
Accrued Interest (calculated through the last day of the month in which the prepayment occurs); plus


 


(C)         the
Prepayment Premium; plus


 


(D)         all
other Indebtedness.


 




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In connection
with any such voluntary prepayment, Borrower acknowledges and agrees that interest shall always be calculated and paid through
the last day of the month in which the prepayment occurs (even if the Permitted Prepayment Date for such month is not the last
day of such month, or if Lender approves prepayment on an Intended Prepayment Date that is not a Permitted Prepayment Date).
Borrower further acknowledges that Lender is not required to accept a voluntary prepayment of the Mortgage Loan on any day other
than a Permitted Prepayment Date. However, if Lender does approve an Intended Prepayment Date that is not a Permitted Prepayment
Date and accepts a prepayment on such Intended Prepayment Date, such prepayment shall be deemed to be received on the immediately
following Permitted Prepayment Date. If Borrower fails to prepay the Mortgage Loan on the Intended Prepayment Date for any reason
(including on any Intended Prepayment Date that is approved by Lender) and such failure either continues for five (5) Business
Days, or into the following month, Lender shall have the right to recalculate the payoff amount. If Borrower prepays the Mortgage
Loan either in the following month or more than five (5) Business Days after the Intended Prepayment Date that was approved by
Lender, Lender shall also have the right to recalculate the payoff amount based upon the amount of such payment and the date such
payment was received by Lender. Borrower shall immediately pay to Lender any additional amounts required by any such recalculation.


 


(c)          Acceleration
of Mortgage Loan.


 


Upon acceleration of the Mortgage Loan, Borrower shall
pay to Lender:


 


(1)         the
entire unpaid principal balance of the Mortgage Loan;


 


(2)         all
Accrued Interest (calculated through the last day of the month in which the acceleration occurs);


 


(3)         the
Prepayment Premium; and


 


(4)         all
other Indebtedness.


 


(d)          Application
of Collateral.


 


Any application by
Lender of any collateral or other security to the repayment of all or any portion of the unpaid principal balance of the Mortgage
Loan prior to the Maturity Date in accordance with the Loan Documents shall be deemed to be a prepayment by Borrower. Any such
prepayment shall require the payment to Lender by Borrower of the Prepayment Premium calculated on the amount being prepaid in
accordance with this Loan Agreement.


 


(e)          Casualty
and Condemnation.


 


Notwithstanding any
provision of this Loan Agreement to the contrary, no Prepayment Premium shall be payable with respect to any prepayment occurring
as a result of the application of any insurance proceeds or amounts received in connection with a Condemnation Action in accordance
with this Loan Agreement.


 


(f)          No
Effect on Payment Obligations.


 


Unless otherwise expressly
provided in this Loan Agreement, any prepayment required by any Loan Document of less than the entire unpaid principal balance
of the Mortgage Loan shall not extend or postpone the due date of any subsequent Monthly Debt Service Payments, Monthly Replacement
Reserve Deposit, or other payment, or change the amount of any such payments or deposits.


 




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(g)          Loss
Resulting from Prepayment.


 


In any circumstance
in which a Prepayment Premium is due under this Loan Agreement, Borrower acknowledges that:


 


(1)         any
prepayment of the unpaid principal balance of the Mortgage Loan, whether voluntary or involuntary, or following the occurrence
of an Event of Default by Borrower, will result in Lender’s incurring loss, including reinvestment loss, additional risk,
expense, and frustration or impairment of Lender’s ability to meet its commitments to third parties;


 


(2)         it
is extremely difficult and impractical to ascertain the extent of such losses, risks, and damages;


 


(3)         the
formula for calculating the Prepayment Premium represents a reasonable estimate of the losses, risks, and damages Lender will incur
as a result of a prepayment; and


 


(4)         the
provisions regarding the Prepayment Premium contained in this Loan Agreement are a material part of the consideration for the Mortgage
Loan, and that the terms of the Mortgage Loan are in other respects more favorable to Borrower as a result of Borrower’s
voluntary agreement to such prepayment provisions.


 


ARTICLE 3
- PERSONAL LIABILITY


 


Section 3.01         Non-Recourse
Mortgage Loan; Exceptions.


 


Except as otherwise
provided in this Article 3 or in any other Loan Document, none of Borrower, or any director, officer, manager, member, partner,
shareholder, trustee, trust beneficiary, or employee of Borrower, shall have personal liability under this Loan Agreement or any
other Loan Document for the repayment of the Indebtedness or for the performance of any other obligations of Borrower under the
Loan Documents, and Lender’s only recourse for the satisfaction of such Indebtedness and the performance of such obligations
shall be Lender’s exercise of its rights and remedies with respect to the Mortgaged Property and any other collateral held
by Lender as security for the Indebtedness. This limitation on Borrower’s liability shall not limit or impair Lender’s
enforcement of its rights against Guarantor under any Loan Document.


 


Section 3.02         Personal
Liability of Borrower (Exceptions to Non-Recourse Provision).


 


(a)          Personal
Liability Based on Lender’s Loss.


 


Borrower shall be personally
liable to Lender for the repayment of the portion of the Indebtedness equal to any loss or damage suffered by Lender as a result
of, subject to any notice and cure period, if any:


 


(1)         failure
to pay as directed by Lender upon demand after an Event of Default (to the extent actually received by Borrower):


 


(A)         all
Rents to which Lender is entitled under the Loan Documents; and


 




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(B)         the
amount of all security deposits then held or thereafter collected by Borrower from tenants and not properly applied pursuant
to the applicable Leases;


 


(2)          failure
to maintain all insurance policies required by the Loan Documents, except to the extent Lender has the obligation to pay the premiums
pursuant to Section 12.03(c);


 


(3)          failure
to apply all insurance proceeds received by Borrower or any amounts received by Borrower in connection with a Condemnation Action,
as required by the Loan Documents;


 


(4)       
  failure to comply with any provision of this Loan Agreement or any other Loan Document relating to the delivery
of books and records, statements, schedules, and reports;


 


(5)         except
to the extent directed otherwise by Lender pursuant to Section 3.02(a)(1), failure to apply Rents to the ordinary and necessary
expenses of owning and operating the Mortgaged Property and Debt Service Amounts, as and when each is due and payable, except that
Borrower will not be personally liable with respect to Rents that are distributed by Borrower in any calendar year if Borrower
has paid all ordinary and necessary expenses of owning and operating the Mortgaged Property and Debt Service Amounts for such calendar
year;


 


(6)         waste
or abandonment of the Mortgaged Property; or


 


(7)         grossly
negligent or reckless unintentional material misrepresentation or omission by Borrower, Guarantor, Key Principal, or any officer,
director, partner, manager, member, shareholder, or trustee of Borrower, Guarantor, or Key Principal in connection with on-going
financial or other reporting required by the Loan Documents, or any request for action or consent by Lender.


 


Notwithstanding the foregoing, Borrower
shall not have personal liability under clauses (1), (3), or (5) above to the extent that Borrower lacks the legal right to direct
the disbursement of the applicable funds due to an involuntary Bankruptcy Event that occurs without the consent, encouragement,
or active participation of (A) Borrower, Guarantor, or Key Principal, (B) any Person Controlling Borrower, Guarantor, or Key Principal
or (C) any Person Controlled by or under common Control with Borrower, Guarantor, or Key Principal.


 


(b)          Full
Personal Liability for Mortgage Loan.


 


Borrower shall be
personally liable to Lender for the repayment of all of the Indebtedness, and the Mortgage Loan shall be fully recourse to Borrower,
upon the occurrence of any of the following:


 


(1)         failure
by Borrower to comply with the single-asset entity requirements of Section 4.02(d) of this Loan Agreement;


 


(2)         a
Transfer (other than a conveyance of the Mortgaged Property at a Foreclosure Event pursuant to the Security Instrument and this
Loan Agreement) that is not permitted under this Loan Agreement or any other Loan Document;


 




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(3)         the
occurrence of any Bankruptcy Event (other than an acknowledgement in writing as described in clause (b) of the definition of “Bankruptcy
Event”); provided, however, in the event of an involuntary Bankruptcy Event, Borrower shall only be personally liable
if such involuntary Bankruptcy Event occurs with the consent, encouragement, or active participation of (A) Borrower, Guarantor,
or Key Principal, (B) any Person Controlling Borrower, Guarantor, or Key Principal, or (C) any Person Controlled by or under common
Control with Borrower, Guarantor, or Key Principal;


 


(4)         fraud,
written material misrepresentation, or material omission by Borrower, Guarantor, Key Principal, or any officer, director, partner,
manager, member, shareholder, or trustee of Borrower, Guarantor, or Key Principal in connection with any application for or creation
of the Indebtedness; or


 


(5)         fraud,
written intentional material misrepresentation, or intentional material omission by Borrower, Guarantor, Key Principal, or any
officer, director, partner, manager, member, shareholder, or trustee of Borrower, Guarantor, or Key Principal in connection with
on-going financial or other reporting required by the Loan Documents, or any request for action or consent by Lender.


 


Section 3.03         Personal
Liability for Indemnity Obligations.


 


Borrower shall be personally
and fully liable to Lender for Borrower’s indemnity obligations under Section 13.01(e) of this Loan Agreement, the Environmental
Indemnity Agreement, and any other express indemnity obligations provided by Borrower under any Loan Document. Borrower’s
liability for such indemnity obligations shall not be limited by the amount of the Indebtedness, the repayment of the Indebtedness,
or otherwise, provided that Borrower’s liability for such indemnities shall not include any loss caused by the gross negligence
or willful misconduct of Lender as determined by a court of competent jurisdiction pursuant to a final non-appealable court order.


 


Section 3.04         Lender’s
Right to Forego Rights Against Mortgaged Property.


 


To the extent that
Borrower has personal liability under this Loan Agreement or any other Loan Document, Lender may exercise its rights against Borrower
personally to the fullest extent permitted by applicable law without regard to whether Lender has exercised any rights against
the Mortgaged Property, the UCC Collateral, or any other security, or pursued any rights against Guarantor, or pursued any other
rights available to Lender under this Loan Agreement, any other Loan Document, or applicable law. For purposes of this Section
3.04 only, the term “Mortgaged Property” shall not include any funds that have been applied by Borrower as required
or permitted by this Loan Agreement prior to the occurrence of an Event of Default, or that Borrower was unable to apply as required
or permitted by this Loan Agreement because of a Bankruptcy Event. To the fullest extent permitted by applicable law, in any action
to enforce Borrower’s personal liability under this Article 3, Borrower waives any right to set off the value of the Mortgaged
Property against such personal liability.


 


ARTICLE 4
- BORROWER STATUS


 


Section 4.01         Representations
and Warranties.


 


The representations
and warranties made by Borrower to Lender in this Section 4.01 are made as of the Effective Date and are true and correct except
as disclosed on the Exceptions to Representations and Warranties Schedule.


 




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(a)          Due
Organization and Qualification.


 


Borrower is validly
existing and qualified to transact business and is in good standing in the state in which it is formed or organized, the Property
Jurisdiction, and in each other jurisdiction that qualification or good standing is required according to applicable law to conduct
its business with respect to the Mortgaged Property and where the failure to be so qualified or in good standing would adversely
affect Borrower’s operation of the Mortgaged Property or the validity, enforceability or the ability of Borrower to perform
its obligations under this Loan Agreement or any other Loan Document.


 


(b)          Location.


 


Borrower’s General
Business Address is Borrower’s principal place of business and principal office.


 


(c)          Power
and Authority.


 


Borrower has the requisite power and authority:


 


(1)         to
own the Mortgaged Property and to carry on its business as now conducted and as contemplated to be conducted in connection with
the performance of its obligations under this Loan Agreement and under the other Loan Documents to which it is a party; and


 


(2)         to
execute and deliver this Loan Agreement and the other Loan Documents to which it is a party, and to carry out the transactions
contemplated by this Loan Agreement and the other Loan Documents to which it is a party.


 


(d)          Due
Authorization.


 


The execution, delivery,
and performance of this Loan Agreement and the other Loan Documents to which it is a party have been duly authorized by all necessary
action and proceedings by or on behalf of Borrower, and no further approvals or filings of any kind, including any approval of
or filing with any Governmental Authority, are required by or on behalf of Borrower as a condition to the valid execution, delivery,
and performance by Borrower of this Loan Agreement or any of the other Loan Documents to which it is a party, except filings required
to perfect and maintain the liens to be granted under the Loan Documents and routine filings to maintain good standing and its
existence.


 


(e)          Valid
and Binding Obligations.


 


This Loan Agreement
and the other Loan Documents to which it is a party have been duly executed and delivered by Borrower and constitute the legal,
valid, and binding obligations of Borrower, enforceable against Borrower in accordance with their respective terms, except as such
enforceability may be limited by applicable Insolvency Laws or by the exercise of discretion by any court.


 




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(f)           Effect of Mortgage Loan on Borrower’s
Financial Condition.


 


The Mortgage Loan will
not render Borrower Insolvent. Borrower has sufficient working capital, including proceeds from the Mortgage Loan, cash flow from
the Mortgaged Property, or other sources, not only to adequately maintain the Mortgaged Property, but also to pay all of Borrower’s
outstanding debts as they come due, including all Debt Service Amounts, exclusive of Borrower’s ability to refinance or pay
in full the Mortgage Loan on the Maturity Date. In connection with the execution and delivery of this Loan Agreement and the other
Loan Documents (and the delivery to, or for the benefit of, Lender of any collateral contemplated thereunder), and the incurrence
by Borrower of the obligations under this Loan Agreement and the other Loan Documents, Borrower did not receive less than reasonably
equivalent value in exchange for the incurrence of the obligations of Borrower under this Loan Agreement and the other Loan Documents.


 


(g)          Economic
Sanctions, Anti-Money Laundering, and Anti-Corruption.


 


(1)         None
of Borrower, Guarantor, or Key Principal, nor to Borrower’s knowledge, any Person Controlling Borrower, Guarantor, or Key
Principal, nor any Person Controlled by Borrower, Guarantor, or Key Principal that also has a direct or indirect ownership interest
in Borrower, Guarantor, or Key Principal, is in violation of any applicable civil or criminal laws or regulations, including those
requiring internal controls, intended to prohibit, prevent, or regulate money laundering, drug trafficking, terrorism, or corruption,
of the United States and the jurisdiction where the Mortgaged Property is located or where the Person resides, is domiciled, or
has its principal place of business.


 


(2)         None
of Borrower, Guarantor, or Key Principal, nor to Borrower’s knowledge, any Person Controlling Borrower, Guarantor, or Key
Principal, nor any Person Controlled by Borrower, Guarantor, or Key Principal that also has a direct or indirect ownership interest
in Borrower, Guarantor, or Key Principal, is a Person:


 


(A)         against
whom proceedings are pending for any alleged violation of any laws described in Section 4.01(g)(1);


 


(B)         that
has been convicted of any violation of, has been subject to civil penalties or Economic Sanctions pursuant to, or had any of its
property seized or forfeited under, any laws described in Section 4.01(g)(1); or


 


(C)         with
whom any United States Person, any entity organized under the laws of the United States or its constituent states or territories,
or any entity, regardless of where organized, having its principal place of business within the United States or any of its territories,
is a Sanctioned Person or is otherwise prohibited from transacting business of the type contemplated by this Loan Agreement and
the other Loan Documents under any other applicable law.


 


(3)         Borrower,
Guarantor, and Key Principal are in compliance with all applicable Economic Sanctions laws and regulations.


 


(h)          Borrower
Single Asset Status.


 


Borrower:


 


(1)         does
not own or lease any real property, personal property, or assets other than the Mortgaged Property;


 




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(2)         does
not own, operate, or participate in any business other than the leasing, ownership, management, operation, and maintenance of the
Mortgaged Property;


 


(3)          has
no material financial obligation under or secured by any indenture, mortgage, deed of trust, deed to secure debt, loan agreement,
or other agreement or instrument to which Borrower is a party, or by which Borrower is otherwise bound, or to which the Mortgaged
Property is subject or by which it is otherwise encumbered, other than:


 


(A)         unsecured
trade payables incurred in the ordinary course of the operation of the Mortgaged Property (exclusive of amounts for rehabilitation,
restoration, repairs, or replacements of the Mortgaged Property) that (i) are not evidenced by a promissory note, (ii) are payable
within sixty (60) days of the date incurred, and (iii) as of the Effective Date, do not exceed, in the aggregate, four percent
(4%) of the original principal balance of the Mortgage Loan;


 


(B)         if
the Security Instrument grants a lien on a leasehold estate, Borrower’s obligations as lessee under the ground lease creating
such leasehold


estate; and


 


(C)         obligations
under the Loan Documents and obligations secured by the Mortgaged Property to the extent permitted by the Loan Documents;


 


(4)         has
maintained its financial statements, accounting records, and other partnership, real estate investment trust, limited liability
company, or corporate documents, as the case may be, separate from those of any other Person (unless Borrower’s assets have
been included in a consolidated financial statement prepared in accordance with generally accepted accounting principles);


 


(5)         has
not commingled its assets or funds with those of any other Person, unless such assets or funds can easily be segregated and identified
in the ordinary course of business from those of any other Person;


 


(6)         has
been adequately capitalized in light of its contemplated business


operations;


 


(7)         has
not assumed, guaranteed, or pledged its assets to secure the liabilities or obligations of any other Person (except in connection
with the Mortgage Loan or other mortgage loans that have been paid in full or collaterally assigned to Lender, including in connection
with any Consolidation, Extension and Modification Agreement or similar instrument), or held out its credit as being available
to satisfy the obligations of any other Person;


 


(8)         has
not made loans or advances to any other Person; and


 


(9)         has
not entered into, and is not a party to, any transaction with any Borrower Affiliate, except in the ordinary course of business
and on terms which are no more favorable to any such Borrower Affiliate than would be obtained in a comparable arm’s length
transaction with an unrelated third party.


 




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(i)          No
Bankruptcies or Judgments.


 


None of Borrower, Guarantor,
or Key Principal, nor to Borrower’s knowledge, any Person Controlling Borrower, Guarantor, or Key Principal, nor any Person
Controlled by Borrower, Guarantor, or Key Principal that also has a direct or indirect ownership interest in Borrower, Guarantor,
or Key Principal, is currently:


 


(1)         the
subject of or a party to any completed or pending bankruptcy, reorganization, including any receivership or other insolvency proceeding;


 


(2)         preparing
or intending to be the subject of a Bankruptcy Event; or


 


(3)         the
subject of any judgment unsatisfied of record or docketed in any court; or


 


(4)         Insolvent.


 


(j)          No
Actions or Litigation.


 


(1)         There
are no claims, actions, suits, or proceedings at law or in equity by or before any Governmental Authority now pending against or,
to Borrower’s knowledge, threatened against or affecting Borrower or the Mortgaged Property not otherwise covered by insurance
(except claims, actions, suits, or proceedings regarding fair housing, anti-discrimination, or equal opportunity, which shall always
be disclosed); and


 


(2)         there
are no claims, actions, suits, or proceedings at law or in equity by or before any Governmental Authority now pending or, to Borrower’
s knowledge, threatened against or affecting Guarantor or Key Principal, which claims, actions, suits, or proceedings, if adversely
determined (individually or in the aggregate) reasonably would be expected to materially adversely affect the financial condition
or business of Borrower, Guarantor, or Key Principal or the condition, operation, or ownership of the Mortgaged Property (except
claims, actions, suits, or proceedings regarding fair housing, anti-discrimination, or equal opportunity, which shall always be
deemed material).


 


(k)          Payment
of Taxes, Assessments, and Other Charges.


 


Borrower confirms that:


 


(1)         it
has filed all federal, state, county, and municipal tax returns and reports required to have been filed by Borrower;


 


(2)         it
has paid, before any fine, penalty, interest, lien, or costs may be added thereto, all taxes, governmental charges, and assessments
due and payable with respect to such returns and reports;


 


(3)         there
is no controversy or objection pending, or to the knowledge of Borrower, threatened in respect of any tax returns of Borrower;
and


 


(4)         it
has made adequate reserves on its books and records for all taxes that have accrued but which are not yet due and payable.


 




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(1)         Not
a Foreign Person.


 


Borrower is not a “foreign
person” within the meaning of Section 1445(0(3) of the Internal Revenue Code.


 


(m)         ERISA.


 


Borrower represents and warrants
that:


 


(1)         Borrower
is not an Employee Benefit Plan;


 


(2)         no
asset of Borrower constitutes “plan assets” (within the meaning of Section 3(42) of ERISA and Department of Labor Regulation
Section 2510.3-101) of an Employee Benefit Plan;


 


(3)         no
asset of Borrower is subject to any laws of any Governmental Authority governing the assets of an Employee Benefit Plan; and



 


(4)         neither
Borrower nor any ERISA Affiliate is subject to any obligation or liability with respect to any ERISA Plan.


 


(n)          Default
Under Other Obligations.


 


(1)         The
execution, delivery, and performance of the obligations imposed on Borrower under this Loan Agreement and the Loan Documents to
which it is a party will not cause Borrower to be in default under the provisions of any agreement, judgment, or order to which
Borrower is a party or by which Borrower is bound.


 


(2)         None
of Borrower, Guarantor, or Key Principal is in default under any obligation to Lender.


 


(o)          Prohibited
Person.


 


None of Borrower, Guarantor,
or Key Principal is a Prohibited Person, nor to Borrower’s knowledge, is any Person:


 


(1)         Controlling
Borrower, Guarantor, or Key Principal a Prohibited Person; or


 


(2)         Controlled
by and having a direct or indirect ownership interest in Borrower, Guarantor, or Key Principal a Prohibited Person.


 


(p)          No
Contravention.


 


Neither the execution
and delivery of this Loan Agreement and the other Loan Documents to which Borrower is a party, nor the fulfillment of or compliance
with the terms and conditions of this Loan Agreement and the other Loan Documents to which Borrower is a party, nor the performance
of the obligations of Borrower under this Loan Agreement and the other Loan Documents does or will conflict with or result in any
breach or violation of, or constitute a default under, any of the terms, conditions, or provisions of Borrower’s organizational
documents, or any indenture, existing agreement, or other instrument to which Borrower is a party or to which Borrower, the Mortgaged
Property, or other assets of Borrower are subject.


 




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(q)          Lockbox
Arrangement.


 


Neither Borrower nor
the direct or indirect owners of Borrower is party to any type of lockbox agreement or other similar cash management arrangement
with respect to the Mortgaged Property with any direct or indirect owner of Borrower that has not been approved by Lender in writing.
In the event that Lender has approved any such arrangement, Borrower has, at Lender’s option, entered into a lockbox agreement
or other similar cash management agreement with Lender in form and substance acceptable to Lender.


 


Section 4.02         Covenants.


 


(a)          Maintenance
of Existence; Organizational Documents.


 


Borrower shall maintain
its existence, its entity status, franchises, rights, and privileges under the laws of the state of its formation or organization
(as applicable). Borrower shall continue to be duly qualified and in good standing to transact business in each jurisdiction in
which qualification or standing is required according to applicable law to conduct its business with respect to the Mortgaged Property
and where the failure to do so would adversely affect Borrower’s operation of the Mortgaged Property or the validity, enforceability,
or the ability of Borrower to perform its obligations under this Loan Agreement or any other Loan Document. Neither Borrower nor
any partner, member, manager, officer, or director of Borrower shall:


 


(1)         make
or allow any material change to the organizational documents or organizational structure of Borrower, including changes relating
to the Control of Borrower, or


 


(2)         file
any action, complaint, petition, or other claim to:


 


(A)         divide,
partition, or otherwise compel the sale of the Mortgaged Property, or


 


(B)         otherwise
change the Control of Borrower.


 


(b)          Economic
Sanctions, Anti-Money Laundering, and Anti-Corruption.


 


(1)         Borrower,
Guarantor, Key Principal, and any Person Controlling Borrower, Guarantor, or Key Principal, or any Person Controlled by Borrower,
Guarantor, or Key Principal that also has a direct or indirect ownership interest in Borrower, Guarantor, or Key Principal shall
remain in compliance with any applicable civil or criminal laws or regulations (including those requiring internal controls) intended
to prohibit, prevent, or regulate money laundering, drug trafficking, terrorism, or corruption, of the United States and the jurisdiction
where the Mortgaged Property is located or where the Person resides, is domiciled, or has its principal place of business.


 


(2)         At
no time shall Borrower, Guarantor, or Key Principal, or any Person Controlling Borrower, Guarantor, or Key Principal, or any Person
Controlled by Borrower, Guarantor, or Key Principal that also has a direct or indirect ownership interest in Borrower, Guarantor,
or Key Principal, be a Person:


 


(A)         against
whom proceedings are pending for any alleged violation of any laws described in Section 4.02(b)(1);


 




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(B)         that
has been convicted of any violation of, has been subject to civil penalties or Economic Sanctions pursuant to, or had any of its
property seized or forfeited under, any laws described in Section 4.02(b)(1); or


 


(C)         with
whom any United States Person, any entity organized under the laws of the United States or its constituent states or territories,
or any entity, regardless of where organized, having its principal place of business within the United States or any of its territories,
is a Sanctioned Person or is otherwise prohibited from transacting business of the type contemplated by this Loan Agreement and
the other Loan Documents under any other applicable law.


 


(3)         Borrower,
Guarantor, and Key Principal shall at all times remain in compliance with any applicable Economic Sanctions laws and regulations.


 


(c)          Payment
of Taxes, Assessments, and Other Charges.


 


Borrower shall file
all federal, state, county, and municipal tax returns and reports required to be filed by Borrower and shall pay, before any fine,
penalty, interest, or cost may be added thereto, all taxes payable with respect to such returns and reports.


 


(d)          Borrower
Single Asset Status.


 


Until the Indebtedness is fully paid, Borrower:


 


(1)         shall
not acquire or lease any real property, personal property, or assets other than the Mortgaged Property;


 


(2)         shall
not acquire, own, operate, or participate in any business other than the leasing, ownership, management, operation, and maintenance
of the Mortgaged Property;


 


(3)         shall
not commingle its assets or funds with those of any other Person, unless such assets or funds can easily be segregated and identified
in the ordinary course of business from those of any other Person;


 


(4)          shall
maintain its financial statements, accounting records, and other partnership, real estate investment trust, limited liability company,
or corporate documents, as the case may be, separate from those of any other Person (unless Borrower’s assets are included
in a consolidated financial statement prepared in accordance with generally accepted accounting principles);


 


(5)          shall
have no material financial obligation under any indenture, mortgage, deed of trust, deed to secure debt, loan agreement, or other
agreement or instrument to which Borrower is a party or by which Borrower is otherwise bound, or to which the Mortgaged Property
is subject or by which it is otherwise encumbered, other than:


 




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(A)         unsecured
trade payables incurred in the ordinary course of the operation of the Mortgaged Property (exclusive of amounts (i) to be paid
out of the Replacement Reserve Account or Repairs Escrow Account, or (ii) for rehabilitation, restoration, repairs, or replacements
of the Mortgaged Property or otherwise approved by Lender) so long as such trade payables (1) are not evidenced by a promissory
note, (2) are payable within sixty (60) days of the date incurred, and (3) as of any date, do not exceed, in the aggregate, two
percent (2%) of the original principal balance of the Mortgage Loan; provided, however, that otherwise compliant outstanding trade
payables may exceed two percent (2%) up to an aggregate amount of four percent (4%) of the original principal balance of the Mortgage
Loan for a period (beginning on or after the Effective Date) not to exceed ninety (90) consecutive days;


 


(B)         if
the Security Instrument grants a lien on a leasehold estate, Borrower’s obligations as lessee under the ground lease creating
such leasehold estate; and


 


(C)         obligations
under the Loan Documents and obligations secured by the Mortgaged Property to the extent permitted by the Loan Documents;


 


(6)         shall
not assume, guaranty, or pledge its assets to secure the liabilities or obligations of any other Person (except in connection with
the Mortgage Loan or other mortgage loans that have been paid in full or collaterally assigned to Lender, including in connection
with any Consolidation, Extension and Modification Agreement or similar instrument) or hold out its credit as being available to
satisfy the obligations of any other Person;


 


(7)         shall
not make loans or advances to any other Person; or


 


(8)         shall
not enter into, or become a party to, any transaction with any Borrower Affiliate, except in the ordinary course of business and
on terms which are no more favorable to any such Borrower Affiliate than would be obtained in a comparable arm’s-length transaction
with an unrelated third party.


 


(e)          ERISA.


 


Borrower covenants that:


 


(1)         no
asset of Borrower shall constitute “plan assets” (within the meaning of Section 3(42) of ERISA and Department of Labor
Regulation Section 2510.3-101) of an Employee Benefit Plan;


 


(2)         no
asset of Borrower shall be subject to the laws of any Governmental Authority governing the assets of an Employee Benefit Plan;
and


 


(3)         neither
Borrower nor any ERISA Affiliate shall incur any obligation or liability with respect to any ERISA Plan.


 




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(f)          Notice
of Litigation or Insolvency.


 


Borrower shall give
immediate written notice to Lender of any claims, actions, suits, or proceedings at law or in equity (including any insolvency,
bankruptcy, or receivership proceeding) by or before any Governmental Authority pending or, to Borrower’s knowledge, threatened
against or affecting Borrower, Guarantor, Key Principal, or the Mortgaged Property, which claims, actions, suits, or proceedings,
if adversely determined reasonably would be expected to materially adversely affect the financial condition or business of Borrower,
Guarantor, or Key Principal, or the condition, operation, or ownership of the Mortgaged Property (including any claims, actions,
suits, or proceedings regarding fair housing, anti-discrimination, or equal opportunity, which shall always be deemed material).


 


(g)          Payment
of Costs, Fees, and Expenses.


 


In addition to the
payments specified in this Loan Agreement, Borrower shall pay, on demand, all of Lender’s out-of-pocket fees, costs, charges,
or expenses (including the reasonable fees and expenses of attorneys, accountants, and other experts) incurred by Lender in connection
with:


 


(1)         any
amendment to, or consent, or waiver required under, this Loan Agreement or any of the Loan Documents (whether or not any such amendments,
consents, or waivers are entered into);


 


(2)         defending
or participating in any litigation arising from actions by third parties and brought against or involving Lender with respect to:


 


(A)         the
Mortgaged Property;


 


(B)         any
event, act, condition, or circumstance in connection with the Mortgaged Property; or


 


(C)         the
relationship between or among Lender, Borrower, Key Principal, and Guarantor in connection with this Loan Agreement or any of the
transactions contemplated by this Loan Agreement;


 


(3)         the
administration or enforcement of, or preservation of rights or remedies under, this Loan Agreement or any other Loan Documents
including or in connection with any litigation or appeals, any Foreclosure Event or other disposition of any collateral granted
pursuant to the Loan Documents; and


 


(4)         any
Bankruptcy Event or Guarantor Bankruptcy Event.


 


(h)          Restrictions
on Distributions.


 


No distributions or
dividends of any nature with respect to Rents or other income from the Mortgaged Property shall be made to any Person having a
direct ownership interest in Borrower if an Event of Default has occurred and is continuing.


 


Lockbox Arrangement.


 


Neither Borrower nor
the direct or indirect owners of Borrower shall enter into any type of lockbox agreement or other similar cash management arrangement
with respect to the Mortgaged Property with any direct or indirect owner of Borrower without the prior written consent of Lender.
In the event that Lender issues such consent, Borrower shall, at Lender’s option, be required to enter into a lockbox agreement
or other similar cash management agreement with Lender in form and substance acceptable to Lender.


 




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ARTICLE 5
- THE MORTGAGE LOAN


 


Section 5.01         Representations
and Warranties.


 


The representations
and warranties made by Borrower to Lender in this Section 5.01 are made as of the Effective Date and are true and correct except
as disclosed on the Exceptions to Representations and Warranties Schedule.


 


(a)          Receipt
and Review of Loan Documents.


 


Borrower has received
and reviewed this Loan Agreement and all of the other Loan Documents.


 


(b)          No
Default.


 


No default exists under any of the Loan Documents.


 


(c)          No
Defenses.


 


The Loan Documents
are not currently subject to any right of rescission, set-off, counterclaim, or defense by either Borrower or Guarantor, including
the defense of usury, and neither Borrower nor Guarantor has asserted any right of rescission, set-off, counterclaim, or defense
with respect thereto.


 


(d)          Loan
Document Taxes.


 


All mortgage, mortgage
recording, stamp, intangible, or any other similar taxes required to be paid by any Person under applicable law currently in effect
in connection with the execution, delivery, recordation, filing, registration, perfection, or enforcement of any of the Loan Documents,
including the Security Instrument, have been paid or will be paid in the ordinary course of the closing of the Mortgage Loan.


 


Section 5.02         Covenants.


 


(a)          Ratification
of Covenants; Estoppels; Certifications.


 


Borrower shall:


 


(1)         promptly
notify Lender in writing upon any violation of any covenant set forth in any Loan Document of which Borrower has notice or knowledge;
provided, however, any such written notice by Borrower to Lender shall not relieve Borrower of, or result in a waiver of,
any obligation under this Loan Agreement or any other Loan Document; and


 


(2)         within
ten (10) days after a request from Lender, provide a written statement, signed and acknowledged by Borrower, certifying to Lender
or any person designated by Lender, as of the date of such statement:


 


(A)         that
the Loan Documents are unmodified and in full force and effect (or, if there have been modifications, that the Loan Documents are
in full force and effect as modified and setting forth such modifications);


 




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(B)         the
unpaid principal balance of the Mortgage Loan;


 


(C)         the
date to which interest on the Mortgage Loan has been paid;


 


(D)         that
Borrower is not in default in paying the Indebtedness or in performing or observing any of the covenants or agreements contained
in this Loan Agreement or any of the other Loan Documents (or, if Borrower is in default, describing such default in reasonable
detail);


 


(E)         whether
or not there are then-existing any setoffs or defenses known to Borrower against the enforcement of any right or remedy of Lender
under the Loan Documents; and


 


(F)         any
additional facts reasonably requested in writing by Lender.


 


(b)          Further
Assurances.


 


(1)         Other
Documents As Lender May Require.


 


Within ten
(10) days after request by Lender, Borrower shall, subject to Section 5.02(d) below, execute, acknowledge, and deliver, at its
cost and expense, all further acts, deeds, conveyances, assignments, financing statements, transfers, documents, agreements, assurances,
and such other instruments as Lender may reasonably require from time to time in order to better assure, grant, and convey to Lender
the rights intended to be granted, now or in the future, to Lender under this Loan Agreement and the other Loan Documents.


 


(2)         Corrective
Actions.


 


Within ten
(10) days after request by Lender, Borrower shall provide, or cause to be provided, to Lender, at Borrower’s cost and expense,
such further documentation or information reasonably deemed necessary or appropriate by Lender in the exercise of its rights under
the related commitment letter between Borrower and Lender or to correct patent mistakes in the Loan Documents, the Title Policy,
or the funding of the Mortgage Loan.


 


(c)          Sale
of Mortgage Loan.


 


Borrower shall, subject to Section 5.02(d) below:


 


(1)         comply
with the reasonable requirements of Lender or any Investor of the Mortgage Loan or provide, or cause to be provided, to Lender
or any Investor of the Mortgage Loan within ten (10) days of the request, at Borrower’s cost and expense, such further documentation
or information as Lender or Investor may reasonably require, in order to enable:


 


(A)         Lender
to sell the Mortgage Loan to such Investor;


 


(B)         Lender
to obtain a refund of any commitment fee from any such Investor; or


 




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(C)         any
such Investor to further sell or securitize the Mortgage Loan;


 


(2)         ratify
and affirm in writing the representations and warranties set forth in any Loan Document as of such date specified by Lender modified
as necessary to reflect changes that have occurred subsequent to the Effective Date;


 


(3)         confirm
that Borrower is not in default in paying the Indebtedness or in performing or observing any of the covenants or agreements contained
in this Loan Agreement or any of the other Loan Documents (or, if Borrower is in default, describing such default in reasonable
detail); and


 


(4)         execute
and deliver to Lender and/or any Investor such other documentation, including any amendments, corrections, deletions, or additions
to this Loan Agreement or other Loan Document(s) as is reasonably required by Lender or such Investor.


 


(d)          Limitations
on Further Acts of Borrower.


 


Nothing in Section
5.02(b) and Section 5.02(c) shall require Borrower to do any further act that has the effect of:


 


(1)         changing
the economic terms of the Mortgage Loan set forth in the related commitment letter between Borrower and Lender;


 


(2)         imposing
on Borrower or Guarantor greater personal liability under the Loan Documents than that set forth in the related commitment letter
between Borrower and Lender; or


 


(3)         materially
changing the rights and obligations of Borrower or Guarantor under the commitment letter.


 


(e)          Financing
Statements; Record Searches.


 


(1)         Borrower
shall pay all costs and expenses associated with:


 


(A)         any
filing or recording of any financing statements, including all continuation statements, termination statements, and amendments
or any other filings related to security interests in or liens on collateral; and


 


(B)         any
record searches for financing statements that Lender may require.


 


(2)         Borrower
hereby authorizes Lender to file any financing statements, continuation statements, termination statements, and amendments (including
an “all assets” or “all personal property” collateral description or words of similar import) in form and
substance as Lender may require in order to protect and preserve Lender’s lien priority and security interest in the Mortgaged
Property (and to the extent Lender has filed any such financing statements, continuation statements, or amendments prior to the
Effective Date, such filings by Lender are hereby authorized and ratified by Borrower).


 




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(f)           Loan Document Taxes.


 


Borrower shall pay,
on demand, any transfer taxes, documentary taxes, assessments, or charges made by any Governmental Authority in connection with
the execution, delivery, recordation, filing, registration, perfection, or enforcement of any of the Loan Documents or the Mortgage
Loan.


 


ARTICLE 6
- PROPERTY USE, PRESERVATION, AND MAINTENANCE


 


Section 6.01         Representations
and Warranties.


 


The representations
and warranties made by Borrower to Lender in this Section 6.01 are made as of the Effective Date and are true and correct except
as disclosed on the Exceptions to Representations and Warranties Schedule.


 


(a)          Compliance
with Law; Permits and Licenses.


 


(1)         To
Borrower’s knowledge, all improvements to the Land and the use of the Mortgaged Property comply with all applicable laws,
ordinances, statutes, rules, and regulations, including all applicable statutes, rules, and regulations pertaining to requirements
for equal opportunity, anti-discrimination, fair housing, and rent control, and Borrower has no knowledge of any action or proceeding
(or threatened action or proceeding) regarding noncompliance or nonconformity with any of the foregoing.


 


(2)         To
Borrower’s knowledge, there is no evidence of any illegal activities on the Mortgaged Property.


 


(3)         To
Borrower’s knowledge, no permits or approvals from any Governmental Authority, other than those previously obtained and furnished
to Lender, are necessary for the commencement and completion of the Repairs or Replacements, as applicable, other than those permits
or approvals which will be timely obtained in the ordinary course of business.


 


(4)         All
required permits, licenses, and certificates to comply with all zoning and land use statutes, laws, ordinances, rules, and regulations,
and all applicable health, fire, safety, and building codes, and for the lawful use and operation of the Mortgaged Property, including
certificates of occupancy, apartment licenses, or the equivalent, have been obtained and are in full force and effect.


 


(5)         No
portion of the Mortgaged Property has been purchased with the proceeds of any illegal activity.


 


(b)          Property
Characteristics.


 


(1)         The
Mortgaged Property contains at least:


 


(A)         the
Property Square Footage;


 


(B)         the
Total Parking Spaces; and


 


(C)         the
Total Residential Units.


 




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(2)         No
part of the Land is included or assessed under or as part of another tax lot or parcel, and no part of any other property is included
or assessed under or as part of the tax lot or parcels for the Land.


 


(c)          Property
Ownership.


 


Borrower is sole owner or ground lessee of the Mortgaged
Property.


 


(d)          Condition
of the Mortgaged Property.


 


(1)         Borrower
has not made any claims, and to Borrower’s knowledge, no claims have been made, against any contractor, engineer, architect,
or other party with respect to the construction or condition of the Mortgaged Property or the existence of any structural or other
material defect therein; and


 


(2)         neither
the Land nor the Improvements has sustained any damage other than damage which has been fully repaired, or is fully insured and
is being repaired in the ordinary course of business.


 


(e)          Personal
Property.


 


Borrower owns (or,
to the extent disclosed on the Exceptions to Representations and Warranties Schedule, leases) all of the Personal Property that
is material to and is used in connection with the management, ownership, and operation of the Mortgaged Property.


 


Section 6.02         Covenants


 


(a)          Use
of Property.


 


From and after the
Effective Date, Borrower shall not, unless required by applicable law or Governmental Authority:


 


(1)         change
the use of all or any part of the Mortgaged Property;


 


(2)         convert
any individual dwelling units or common areas to commercial use, or convert any common area or commercial use to individual dwelling
units without Lender’s prior written consent;


 


(3)         initiate
or acquiesce in a change in the zoning classification of the Land;


 


(4)         establish
any condominium or cooperative regime with respect to the Mortgaged Property;


 


(5)         subdivide
the Land; or


 


(6)         suffer,
permit, or initiate the joint assessment of any Mortgaged Property with any other real property constituting a tax lot separate
from such Mortgaged Property which could cause the part of the Land to be included or assessed under or as part of another tax
lot or parcel, or any part of any other property to be included or assessed under or as part of the tax lot or parcels for the
Land.


 




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(b)          Property
Maintenance. 


 


Borrower shall:


 


(1)         pay
the expenses of operating, managing, maintaining, and repairing the Mortgaged Property (including insurance premiums, utilities,
Repairs, and Replacements) before the last date upon which each such payment may be made without any penalty or interest charge
being added;


 


(2)         keep
the Mortgaged Property in good repair and marketable condition (ordinary wear and tear excepted) (including the replacement of
Personalty and Fixtures with items of equal or better function and quality) and subject to Section 9.03(b)(3) and Section 10.03(d)
restore or repair promptly, in a good and workmanlike manner, any damaged part of the Mortgaged Property to the equivalent of its
original condition or condition immediately prior to the damage (if improved after the Effective Date), whether or not any insurance
proceeds or amounts received in connection with a Condemnation Action are available to cover any costs of such restoration or repair;


 


(3)         commence
all Required Repairs, Additional Lender Repairs, and Additional Lender Replacements as follows:


 


(A)         with
respect to any Required Repairs, promptly following the Effective Date (subject to Force Majeure, if applicable), in accordance
with the timelines set forth on the Required Repair Schedule, or if no timelines are provided, as soon as practical following the
Effective Date;


 


(B)         with
respect to Additional Lender Repairs, in the event that Lender determines that Additional Lender Repairs are necessary from time
to time or pursuant to Section 6.03(c), promptly following Lender’s written notice of such Additional Lender Repairs (subject
to Force Majeure, if applicable), commence any such Additional Lender Repairs in accordance with Lender’s timelines, or if
no timelines are provided, as soon as practical;


 


(C)         with
respect to Additional Lender Replacements, in the event that Lender determines that Additional Lender Replacements are necessary
from time to time or pursuant to Section 6.03(c), promptly following Lender’s written notice of such Additional Lender Replacements
(subject to Force Majeure, if applicable), commence any such Additional Lender Replacements in accordance with Lender’s timelines,
or if no timelines are provided, as soon as practical;


 


(4)          make,
construct, install, diligently perform, and complete all Replacements and Repairs:


 


(A)         in
a good and workmanlike manner as soon as practicable following the commencement thereof, free and clear of any Liens, including
mechanics’ or materialmen’s liens and encumbrances (except Permitted Encumbrances and mechanics’ or materialmen’s
liens which attach automatically under the laws of any Governmental Authority upon the commencement of any work upon, or delivery
of any materials to, the Mortgaged Property and for which Borrower is not delinquent in the payment for any such work or materials);


 




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(B)         in
accordance with all applicable laws, ordinances, rules, and regulations of any Governmental Authority, including applicable building
codes, special use permits, and environmental regulations;


 


(C)         in
accordance with all applicable insurance and bonding requirements; and


 


(D)         within
all timeframes required by Lender, and Borrower acknowledges that it shall be an Event of Default if Borrower abandons or ceases
work on any Repair at any time prior to the completion of the Repairs for a period of longer than twenty (20) days (except when
Force Majeure exists and Borrower is diligently pursuing the reinstitution of such work, provided, however, any such abandonment
or cessation shall not in any event allow the Repair to be completed after the Completion Period, subject to Force Majeure); and


 


(5)         subject
to the terms of Section 6.03(a) provide for professional management of the Mortgaged Property by a residential rental property
manager satisfactory to Lender under a contract approved by Lender in writing;


 


(6)         give
written notice to Lender of, and, unless otherwise directed in writing by Lender, appear in and defend any action or proceeding
purporting to affect the Mortgaged Property, Lender’s security for the Mortgage Loan, or Lender’s rights under this
Loan Agreement; and


 


(7)         upon
Lender’s written request, submit to Lender any contracts or work orders described in Section 13.02(b).


 


(c)          Property
Preservation.


 


Borrower shall:


 


(1)         not
commit waste or abandon or (ordinary wear and tear excepted) permit impairment or deterioration of the Mortgaged Property;


 


(2)         except
as otherwise permitted herein in connection with Repairs and Replacements, not remove, demolish, or alter the Mortgaged Property
or any part of the Mortgaged Property (or permit any tenant or any other person to do the same) except in connection with the replacement
of tangible Personalty or Fixtures (provided such Personalty and Fixtures are replaced with items of equal or better function and
quality);


 


(3)         not
engage in or knowingly permit, and shall take appropriate measures to prevent and abate or cease and desist, any illegal activities
at the Mortgaged Property that could endanger tenants or visitors, result in damage to the Mortgaged Property, result in forfeiture
of the Land or otherwise materially impair the lien created by the Security Instrument or Lender’s interest in the Mortgaged
Property;


 




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(4)         not
permit any condition to exist on the Mortgaged Property that would invalidate any part of any insurance coverage required by this
Loan Agreement; or


 


(5)         not
subject the Mortgaged Property to any voluntary, elective, or non-compulsory tax lien or assessment (or opt in to any voluntary,
elective, or non-compulsory special tax district or similar regime).


 


(d)          Property
Inspections.


 


Borrower shall:


 


(1)         permit
Lender, its agents, representatives, and designees to enter upon and inspect the Mortgaged Property (including in connection with
any Replacement or Repair, or to conduct any Environmental Inspection pursuant to the Environmental Indemnity Agreement), and shall
cooperate and provide access to all areas of the Mortgaged Property (subject to the rights of tenants under the Leases):


 


(A)         during
normal business hours;


 


(B)         at
such other reasonable time upon reasonable notice of not less than one (1) Business Day;


 


(C)         at
any time when exigent circumstances exist; or


 


(D)         at
any time after an Event of Default has occurred and is continuing; and


 


(2)         pay
for reasonable costs or expenses incurred by Lender or its agents in connection with any such inspections.


 


(e)          Compliance
with Laws.


 


Borrower shall:


 


(1)         comply
with all laws, ordinances, statutes, rules, and regulations of any Governmental Authority and all recorded lawful covenants and
agreements relating to or affecting the Mortgaged Property, including all laws, ordinances, statutes, rules and regulations, and
covenants pertaining to construction of improvements on the Land, fair housing, and requirements for equal opportunity, anti-discrimination,
and Leases;


 


(2)         procure
and maintain all required permits, licenses, charters, registrations, and certificates necessary to comply with all zoning and
land use statutes, laws, ordinances, rules and regulations, and all applicable health, fire, safety, and building codes and for
the lawful use and operation of the Mortgaged Property, including certificates of occupancy, apartment licenses, or the equivalent;


 


(3)         comply
with all applicable laws that pertain to the maintenance and disposition of tenant security deposits;


 


(4)         at
all times maintain records sufficient to demonstrate compliance with the provisions of this Section 6.02(e); and


 




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(5)         promptly
after receipt or notification thereof, provide Lender copies of any building code or zoning violation from any Governmental Authority
with respect to the Mortgaged Property.


 


Section 6.03         Mortgage
Loan Administration Matters Regarding the Property.


 


(a)          Property
Management.


 


From and after the
Effective Date, each property manager and each property management agreement must be approved by Lender. If, in connection with
the making of the Mortgage Loan, or at any later date, Lender waives in writing the requirement that Borrower enter into a written
contract for management of the Mortgaged Property, and Borrower later elects to enter into a written contract or change the management
of the Mortgaged Property, such new property manager or the property management agreement must be approved by Lender. As a condition
to any approval by Lender, Lender may require that Borrower and such new property manager enter into a collateral assignment of
the property management agreement on a form approved by Lender.


 


(b)          Subordination
of Fees to Affiliated Property Managers.


 


Any property manager
that is a Borrower Affiliate to whom fees are payable for the management of the Mortgaged Property must enter into an assignment
of management agreement or other agreement with Lender, in a form approved by Lender, providing for subordination of those fees
and such other provisions as Lender may require.


 


(c)          Property
Condition Assessment.


 


If, in connection with
any inspection of the Mortgaged Property, Lender determines that the condition of the Mortgaged Property has deteriorated (ordinary
wear and tear excepted) since the Effective Date, Lender may obtain, at Borrower’s expense, a property condition assessment
of the Mortgaged Property. Lender’s right to obtain a property condition assessment pursuant to this Section 6.03(c) shall
be in addition to any other rights available to Lender under this Loan Agreement in connection with any such deterioration. Any
such inspection or property condition assessment may result in Lender requiring Additional Lender Repairs or Additional Lender
Replacements as further described in Section 13.02(a)(9)(B).


 


ARTICLE 7
- LEASES AND RENTS


 


Section 7.01         Representations
and Warranties.


 


The representations
and warranties made by Borrower to Lender in this Section 7.01 are made as of the Effective Date and are true and correct except
as disclosed on the Exceptions to Representations and Warranties Schedule.


 


(a)          Prior
Assignment of Rents.


 


Borrower has not executed any:


 


(1)         prior
assignment of Rents (other than an assignment of Rents securing prior indebtedness that has been paid off and discharged or will
be paid off and discharged with the proceeds of the Mortgage Loan); or


 




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(2)         instrument
which would prevent Lender from exercising its rights under this Loan Agreement or the Security Instrument.


 


(b)          Prepaid
Rents.


 


Borrower has not accepted,
and does not expect to receive prepayment of, any Rents for more than two (2) months prior to the due dates of such Rents.


 


Section 7.02         Covenants.


 


(a)          Leases.


 


Borrower shall:


 


(1)         comply
with and observe Borrower’s obligations under all Leases, including Borrower’s obligations pertaining to the maintenance
and disposition of tenant security deposits;


 


(2)         surrender
possession of the Mortgaged Property, including all Leases and all security deposits and prepaid Rents, immediately upon appointment
of a receiver or Lender’s entry upon and taking of possession and control of the Mortgaged Property, as applicable;


 


(3)         require
that all Residential Leases have initial lease terms of not less than six (6) months and not more than twenty-four (24) months
(notwithstanding the foregoing, Residential Leases with initial terms of less than six (6) months but not less than one (1) month
shall be permitted for up to ten percent (10%) of the units of the Mortgaged Property without Lender’s consent; however,
if customary in the applicable market for properties comparable to the Mortgaged Property, more than ten percent (10%) of the Residential
Leases with terms of less than six (6) months (but in no case less than one (1) month) may be permitted with Lender’s prior
written consent); and


 


(4)         promptly
provide Lender a copy of any non-Residential Lease at the time such Lease is executed (subject to Lender’s consent rights
for Material Commercial Leases in Section 7.02(b)) and, upon Lender’s written request, promptly provide Lender a copy of
any Residential Lease then in effect.


 


(b)          Commercial
Leases.


 


(1)         With
respect to Material Commercial Leases, Borrower shall not:


 


(A)         enter
into any Material Commercial Lease except with the prior written consent of Lender; or


 


(B)         modify
the terms of, extend, or terminate any Material Commercial Lease (including any Material Commercial Lease in existence on the
Effective Date) without the prior written consent of Lender.


 




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(2)         With
respect to any non-Material Commercial Lease, Borrower shall not:


 


(A)         enter
into any non-Material Commercial Lease that materially alters the use and type of operation of the premises subject to the Lease
in effect as of the Effective Date or reduces the number or size of residential units at the Mortgaged Property; or


 


(B)         modify
the terms of any non-Material Commercial Lease (including any non-Material Commercial Lease in existence on the Effective Date)
in any way that materially alters the use and type of operation of the premises subject to such non-Material Commercial Lease in
effect as of the Effective Date, reduces the number or size of residential units at the Mortgaged Property, or results in such
non-Material Commercial Lease being deemed a Material Commercial Lease.


 


(3)         With
respect to any Material Commercial Lease or non-Material Commercial Lease, Borrower shall cause the applicable tenant to provide
within ten (10) days after a request by Borrower, a certificate of estoppel, or if not provided by tenant within such ten (10)
day period, Borrower shall provide such certificate of estoppel, certifying:


 


(A)         that
such Material Commercial Lease or non-Material Commercial Lease is unmodified and in full force and effect (or if there have been
modifications, that such Material Commercial Lease or non-Material Commercial Lease is in full force and effect as modified and
stating the modifications);


 


(B)         the
term of the Lease including any extensions thereto;


 


(C)         the
dates to which the Rent and any other charges hereunder have been paid by tenant;


 


(D)         the
amount of any security deposit delivered to Borrower as landlord;


 


(E)         whether
or not Borrower is in default (or whether any event or condition exists which, with the passage of time, would constitute an event
of default) under such Lease;


 


(F)         the
address to which notices to tenant should be sent; and


 


(G)         any
other information as may be reasonably required by Lender.


 


(c)          Payment
of Rents.


 


Borrower shall:


 


(1)         pay
to Lender upon demand all Rents after an Event of Default has occurred and is continuing;


 




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(2)         cooperate
with Lender’s efforts in connection with the assignment of Rents set forth in the Security Instrument; and


 


(3)         not
accept Rent under any Lease (whether a Residential Lease or a non-Residential Lease) for more than two (2) months in advance.


 


(d)          Assignment
of Rents.


 


Borrower shall not:


 


(1)         perform
any acts nor execute any instrument that would prevent Lender from exercising its rights under the assignment of Rents granted
in the Security Instrument or in any other Loan Document; nor


 


(2)         interfere
with Lender’s collection of such Rents.


 


(e)          Further
Assignments of Leases and Rents.


 


Borrower shall execute
and deliver any further assignments of Leases and Rents as Lender may reasonably require.


 


(f)          Options
to Purchase by Tenants.


 


No Lease (whether a
Residential Lease or a non-Residential Lease) shall contain an option to purchase, right of first refusal to purchase or right
of first offer to purchase, except as required by applicable law.


 


Section 7.03         Mortgage
Loan Administration Regarding Leases and Rents.


 


(a)          Material
Commercial Lease Requirements.


 


Each Material Commercial
Lease, including any renewal or extension of any Material Commercial Lease in existence as of the Effective Date, shall provide,
directly or pursuant to a subordination, non-disturbance and attornment agreement approved by Lender, that:


 


(1)         the
tenant shall, upon written notice from Lender after the occurrence of an Event of Default, pay all Rents payable under such Lease
to Lender;


 


(2)         such
Lease and all rights of the tenant thereunder are expressly subordinate to the lien of the Security Instrument;


 


(3)         the
tenant shall attorn to Lender and any purchaser at a Foreclosure Event (such attornment to be self-executing and effective upon
acquisition of title to the Mortgaged Property by any purchaser at a Foreclosure Event or by Lender in any manner);


 


(4)         the
tenant agrees to execute such further evidences of attornment as Lender or any purchaser at a Foreclosure Event may from time to
time request; and


 


(5)         such
Lease shall not terminate as a result of a Foreclosure Event unless Lender or any other purchaser at such Foreclosure Event affirmatively
elects to terminate such Lease pursuant to the terms of the subordination, non-disturbance and attornment agreement.


 




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(b)          Residential
Lease Form.


 


All Residential Leases
entered into from and after the Effective Date shall be on forms approved by Lender.


 


ARTICLE 8
- BOOKS AND RECORDS; FINANCIAL REPORTING


 


Section 8.01         Representations
and Warranties.


 


The representations
and warranties made by Borrower to Lender in this Section 8.01 are made as of the Effective Date and are true and correct except
as disclosed on the Exceptions to Representations and Warranties Schedule.


 


(a)          Financial
Information.


 


All financial statements
and data, including statements of cash flow and income and operating expenses, that have been delivered to Lender in respect of
the Mortgaged Property:


 


(1)       are
true, complete, and correct in all material respects; and


 


(2)         accurately
represent the financial condition of the Mortgaged Property as of such date.


 


(b)          No
Change in Facts or Circumstances.


 


All information in
the Loan Application and in all financial statements, rent rolls, reports, certificates, and other documents submitted in connection
with the Loan Application are complete and accurate in all material respects. There has been no material adverse change in any
fact or circumstance that would make any such information incomplete or inaccurate.


 


Section 8.02         Covenants.


 


(a)          Obligation
to Maintain Accurate Books and Records.


 


Borrower shall keep
and maintain at all times at the Mortgaged Property or the property management agent’s offices or Borrower’s General
Business Address and, upon Lender’s written request, shall make available at the Land:


 


(1)         complete
and accurate books of account and records (including copies of supporting bills and invoices) adequate to reflect correctly the
operation of the Mortgaged Property; and


 


(2)         copies
of all written contracts, Leases, and other instruments that affect Borrower or the Mortgaged Property.


 




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(b)          Items
to Furnish to Lender.


 


Borrower shall furnish
to Lender the following, certified as true, complete, and accurate in all material respects, by an individual having authority
to bind Borrower (or Guarantor, as applicable), in such form and with such detail as Lender reasonably requires:


 


(1)         within
forty-five (45) days after the end of each first, second, and third calendar quarter, a statement of income and expenses for Borrower
on a year-to-date basis as of the end of each calendar quarter;


 


(2)         within
one hundred twenty (120) days after the end of each calendar year (or one hundred eighty (180) days for any items to be provided
by the Guarantor):


 


(A)         for
any Borrower and any Guarantor that is an entity, a statement of income and expenses and a statement of cash flows for such calendar
year;


 


(B)         for
any Borrower and any Guarantor that is an individual, or a trust established for estate-planning purposes, a personal financial
statement for such calendar year;


 


(C)         when
requested in writing by Lender, balance sheet(s) showing all assets and liabilities of Borrower and Guarantor and a statement of
all contingent liabilities as of the end of such calendar year;


 


(D)         if
an energy consumption metric for the Mortgaged Property is required to be reported to any Governmental Authority, the Fannie Mae
Energy Performance Metrics report, as generated by ENERGY STAR® Portfolio Manager, for the Mortgaged Property for
such calendar year, which report must include the ENERGY STAR score, the Source Energy Use Intensity (EUI), the month and year
ending period for such ENERGY STAR score and such Source Energy Use Intensity, and the ENERGY STAR Portfolio Manager Property Identification
Number; provided that, if the Governmental Authority does not require the use of ENERGY STAR Portfolio Manager for the reporting
of the energy consumption metric and Borrower does not use ENERGY STAR Portfolio Manager, then Borrower shall furnish to Lender
the Source Energy Use Intensity for the Mortgaged Property for such calendar year;


 


(E)         a
written certification ratifying and affirming that:


 


(i)          Borrower
has taken no action in violation of Section 4.02(d) regarding its single asset status;


 


(ii)         Borrower
has received no notice of any building code violation, or if Borrower has received such notice, evidence of remediation;


 


(iii)        Borrower
has made no application for rezoning nor received any notice that the Mortgaged Property has been or is being rezoned; and


 




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(iv)        Borrower
has taken no action and has no knowledge of any action that would violate the provisions of Section 11.02(b)(1)(F) regarding liens
encumbering the Mortgaged Property;


 


(F)         an
accounting of all security deposits held pursuant to all Leases, including the name of the institution (if any) and the names and
identification numbers of the accounts (if any) in which such security deposits are held and the name of the person to contact
at such financial institution, along with any authority or release necessary for Lender to access information regarding such accounts;
and


 


(G)         written
confirmation of:


 


(i)          any
changes occurring since the Effective Date (or that no such changes have occurred since the Effective Date) in (1) the direct owners
of Borrower, (2) the indirect owners (and any non-member managers) of Borrower that Control Borrower (excluding any Publicly-Held
Corporations or Publicly-Held Trusts), or (3) the indirect owners of Borrower that hold twenty-five percent (25%) or more of the
ownership interests in Borrower (excluding any Publicly-Held Corporations or Publicly-Held Trusts), and their respective interests;


 


(ii)         the
names of all officers and directors of (1) any Borrower which is a corporation, (2) any corporation which is a general partner
of any Borrower which is a partnership, or (3) any corporation which is the managing member or non-member manager of any Borrower
which is a limited liability company; and


 


(iii)        the
names of all managers who are not members of (1) any Borrower which is a limited liability company, (2) any limited liability company
which is a general partner of any Borrower which is a partnership, or (3) any limited liability company which is the managing member
or non-member manager of any Borrower which is a limited liability company; and


 


(H)         if
not already provided pursuant to Section 8.02(b)(2)(A) above, a statement of income and expenses for Borrower’s operation
of the Mortgaged Property on a year-to-date basis as of the end of each calendar year;


 


(3)         within
forty-five (45) days after the end of each first, second, and third calendar quarter and within one hundred twenty (120) days after
the end of each calendar year, and at any other time upon Lender’s written request, a rent schedule for the Mortgaged Property
showing the name of each tenant and for each tenant, the space occupied, the lease expiration date, the rent payable for the current
month, the date through which rent has been paid, and any related information requested by Lender; and


 


(4)         upon
Lender’s written request (but, absent an Event of Default, no more frequently than once in any six (6) month period):


 




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(A)         any
item described in Section 8.02(b)(1) or Section 8.02(b)(2) for Borrower, certified as true, complete, and accurate by an individual
having authority to bind Borrower;


 


(B)         a
property management or leasing report for the Mortgaged Property, showing the number of rental applications received from tenants
or prospective tenants and deposits received from tenants or prospective tenants, and any other information requested by Lender;


 


(C)         a
statement of income and expenses for Borrower’s operation of the Mortgaged Property on a year-to-date basis as of the end
of each month for such period as requested by Lender, which statement shall be delivered within thirty (30) days after the end
of such month requested by Lender;


 


(D)         a
statement of real estate owned directly or indirectly by Borrower and Guarantor for such period as requested by Lender, which statement(s)
shall be delivered within thirty (30) days after the end of such month requested by Lender; and


 


(E)         a
statement that identifies:


 


(i)          the
direct owners of Borrower and their respective interests;


 


(ii)         the
indirect owners (and any non-member managers) of Borrower that Control Borrower (excluding any Publicly-Held Corporations or Publicly-Held
Trusts) and their respective interests; and


 


(iii)        the
indirect owners of Borrower that hold twenty-five percent (25%) or more of the ownership interests in Borrower (excluding any Publicly-Held
Corporations or Publicly-Held Trusts) and their respective interests.


 


(c)          Audited
Financials.


 


In the event Borrower
or Guarantor receives or obtains any audited financial statements and such financial statements are required to be delivered to
Lender under Section 8.02(b), Borrower shall deliver or cause to be delivered to Lender the audited versions of such financial
statements.


 


(d)          Delivery
of Books and Records.


 


If an Event of Default
has occurred and is continuing, Borrower shall deliver to Lender, upon written demand, all books and records relating to the Mortgaged
Property or its operation.


 




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Section
8.03         Mortgage Loan Administration Matters Regarding Books and Records and
Financial Reporting.



 


(a)          Lender’s
Right to Obtain Audited Books and Records.


 


Lender may require
that Borrower’s or Guarantor’s books and records be audited, at Borrower’s expense, by an independent certified
public accountant selected by Lender in order to produce or audit any statements, schedules, and reports of Borrower, Guarantor,
or the Mortgaged Property required by Section 8.02, if:


 


(1)         Borrower
or Guarantor fails to provide in a timely manner the statements, schedules, and reports required by Section 8.02 and, thereafter,
Borrower or Guarantor fails to provide such statements, schedules, and reports within the cure period provided in Section 14.01(c);


 


(2)         the
statements, schedules, and reports submitted to Lender pursuant to Section 8.02 are not full, complete, and accurate in all material
respects as determined by Lender and, thereafter, Borrower or Guarantor fails to provide such statements, schedules, and reports
within the cure period provided in Section 14.01(c); or


 


(3)         an
Event of Default has occurred and is continuing.


 


Notwithstanding the
foregoing, the ability of Lender to require the delivery of audited financial statements shall be limited to not more than once
per Borrower’s fiscal year so long as no Event of Default has occurred during such fiscal year (or any event which, with
the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing).
Borrower shall cooperate with Lender in order to satisfy the provisions of this Section 8.03(a). All related costs and expenses
of Lender shall become immediately due and payable by Borrower within ten (10) Business Days after demand therefor.


 


(b)          Credit
Reports; Credit Score.


 


No more often than
once in any twelve (12) month period, Lender is authorized to obtain a credit report (if applicable) on Borrower or Guarantor,
the cost of which report shall be paid by Borrower. Lender is authorized to obtain a Credit Score (if applicable) for Borrower
or Guarantor at any time at Lender’s expense.


 


ARTICLE 9
- INSURANCE


 


Section 9.01         Representations
and Warranties.


 


The representations
and warranties made by Borrower to Lender in this Section 9.01 are made as of the Effective Date and are true and correct except
as disclosed on the Exceptions to Representations and Warranties Schedule.


 


(a)          Compliance
with Insurance Requirements.


 


Borrower is in compliance
with Lender’s insurance requirements (or has obtained a written waiver from Lender for any non-compliant coverage) and has
timely paid all premiums on all required insurance policies.


 




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(b)          Property
Condition.


 


(1)         The
Mortgaged Property has not been damaged by fire, water, wind, or other cause of loss; or


 


(2)         if
previously damaged, any previous damage to the Mortgaged Property has been repaired and the Mortgaged Property has been fully restored.


 


Section 9.02         Covenants.


 


(a)          Insurance
Requirements.


 


(1)         As
required by Lender and applicable law, and as may be modified from time to time, Borrower shall:


 


(A)         keep
the Improvements insured at all times against any hazards, which insurance shall include coverage against loss by fire and all
other perils insured by the “special causes of loss” coverage form, general boiler and machinery coverage, business
income coverage, and flood (if any of the Improvements are located in an area identified by the Federal Emergency Management Agency
(or any successor) as an area having special flood hazards and to the extent flood insurance is available in that area), and may
include sinkhole insurance, mine subsidence insurance, earthquake insurance, terrorism insurance, windstorm insurance and, if the
Mortgaged Property does not conform to applicable building, zoning, or land use laws, ordinance, and law coverage;


 


(B)         maintain
at all times commercial general liability insurance, workmen’s compensation insurance, and such other liability, errors and
omissions, and fidelity insurance coverage; and


 


(C)         maintain
builder’s risk and public liability insurance, and other insurance in connection with completing the Repairs or Replacements,
as applicable.


 


(b)          Delivery
of Policies, Renewals, Notices, and Proceeds.


 


Borrower shall:


 


(1)         cause
all insurance policies (including any policies not otherwise required by Lender) which can be endorsed with standard non-contributing,
non-reporting mortgagee clauses making loss payable to Lender (or Lender’s assigns) to be so endorsed;


 


(2)         promptly
deliver to Lender a copy of all renewal and other notices received by Borrower with respect to the policies and all receipts for
paid premiums;


 




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(3)         deliver
evidence, in form and content acceptable to Lender, that each required insurance policy under this Article 9 has been renewed not
less than five (5) days prior to the applicable expiration date, and (if such evidence is other than an original or duplicate original
of a renewal policy) deliver the original or duplicate original of each renewal policy (or such other evidence of insurance as
may be required by or acceptable to Lender) in form and content acceptable to Lender within ninety (90) days after the applicable
expiration date of the original insurance policy;


 


(4)         provide
immediate written notice to the insurance company and to Lender of any event of loss;


 


(5)         execute
such further evidence of assignment of any insurance proceeds as Lender may require; and


 


(6)         provide
immediate written notice to Lender of Borrower’s receipt of any insurance proceeds under any insurance policy required by
Section 9.02(a)(1)(A) above and, if requested by Lender, deliver to Lender all of such proceeds received by Borrower to be applied
by Lender in accordance with this Article 9.


 


Section 9.03         Mortgage
Loan Administration Matters Regarding Insurance


 


(a)          Lender’s
Ongoing Insurance Requirements.


 


Borrower acknowledges
that Lender’s insurance requirements may change from time to time. All insurance policies and renewals of insurance policies
required by this Loan Agreement shall be:


 


(1)         in
the form and with the terms required by Lender;


 


(2)         in
such amounts, with such maximum deductibles and for such periods required by Lender; and


 


(3)         issued
by insurance companies satisfactory to Lender.


 


BORROWER ACKNOWLEDGES
THAT ANY FAILURE OF BORROWER TO COMPLY WITH THE REQUIREMENTS SET FORTH IN SECTION 9.02(a) OR SECTION 9.02(b)(3) ABOVE SHALL PERMIT
LENDER TO PURCHASE THE APPLICABLE INSURANCE AT BORROWER’S COST. SUCH INSURANCE MAY, BUT NEED NOT, PROTECT BORROWER’S
INTERESTS. THE COVERAGE THAT LENDER PURCHASES MAY NOT PAY ANY CLAIM THAT BORROWER MAKES OR ANY CLAIM THAT IS MADE AGAINST BORROWER
IN CONNECTION WITH THE MORTGAGED PROPERTY. IF LENDER PURCHASES INSURANCE FOR THE MORTGAGED PROPERTY AS PERMITTED HEREUNDER, BORROWER
WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AT THE DEFAULT RATE AND ANY OTHER CHARGES LENDER MAY IMPOSE
IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR THE EXPIRATION OF THE INSURANCE.
THE COSTS OF THE INSURANCE SHALL BE ADDED TO BORROWER’S TOTAL OUTSTANDING BALANCE OR OBLIGATION AND SHALL CONSTITUTE ADDITIONAL
INDEBTEDNESS. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE BORROWER MAY BE ABLE TO OBTAIN ON ITS OWN. BORROWER
MAY LATER CANCEL ANY INSURANCE PURCHASED BY LENDER, BUT ONLY AFTER PROVIDING EVIDENCE THAT BORROWER HAS OBTAINED INSURANCE AS REQUIRED
BY THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS.


 




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(b)          Application
of Proceeds on Event of Loss.


 


(1)         Upon
an event of loss, Lender may, at Lender’s option:


 


(A)         hold
such proceeds to be applied to reimburse Borrower for the cost of Restoration (in accordance with Lender’s then-current policies
relating to the restoration of casualty damage on similar multifamily residential properties); or


 


(B)         apply
such proceeds to the payment of the Indebtedness, whether or not then due; provided, however, Lender shall not apply insurance
proceeds to the payment of the Indebtedness and shall permit Restoration pursuant to Section 9.03(b)(1)(A) if all of the following
conditions are met:


 


(i)          no
Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time,
or both, would constitute an Event of Default has occurred and is continuing);


 


(ii)         Lender
determines that the combination of insurance proceeds and amounts provided by Borrower will be sufficient funds to complete the
Restoration;


 


(iii)        Lender
determines that the net operating income generated by the Mortgaged Property after completion of the Restoration will be sufficient
to support a debt service coverage ratio not less than the debt service coverage ratio immediately prior to the event of loss,
but in no event less than 1.0x (the debt service coverage ratio shall be calculated on a thirty (30) year amortizing basis (if
applicable, on a proforma basis approved by Lender) in all events and shall include all operating costs and other
expenses, Imposition Deposits, deposits to Collateral Accounts, and Mortgage Loan repayment obligations);


 


(iv)        Lender
determines that the Restoration will be completed before the earlier of (1) one year before the stated Maturity Date, or (2) one
year after the date of the loss or casualty; and


 


(v)         Borrower
provides Lender, upon written request, evidence of the availability during and after the Restoration of the insurance required
to be maintained by Borrower pursuant to this Loan Agreement.


 


After the completion of Restoration
in accordance with the above requirements, as determined by Lender, the balance, if any, of such proceeds shall be returned to
Borrower.


 


(2)         Notwithstanding
the foregoing, if any loss is estimated to be in an amount equal to or less than $100,000, Lender shall not exercise its
rights and remedies as power-of-attorney herein and shall allow Borrower to make proof of loss, to adjust and compromise any
claims under policies of property damage insurance, to appear in and prosecute any action arising from such policies of
property damage insurance, and to collect and receive the proceeds of property damage insurance; provided that each of
the following conditions shall be satisfied:


 




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(A)         Borrower
shall immediately notify Lender of the casualty giving rise to the claim;


 


(B)         no
Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of
time, or both, would constitute an Event of Default has occurred and is continuing);


 


(C)         the
Restoration will be completed before the earlier of (i) one year before the stated Maturity Date, or (ii) one year after the date
of the loss or casualty;


 


(D)         Lender
determines that the combination of insurance proceeds and amounts provided by Borrower will be sufficient funds to complete the


Restoration;


 


(E)         all
proceeds of property damage insurance shall be issued in the form of joint checks to Borrower and Lender;


 


(F)         all
proceeds of property damage insurance shall be applied to the Restoration;


 


(G)         Borrower
shall deliver to Lender evidence satisfactory to Lender of completion of the Restoration and obtainment of all lien releases;


 


(H)         Borrower
shall have complied to Lender’s satisfaction with the foregoing requirements on any prior claims subject to this provision,
if any; and


 


(I)         Lender
shall have the right to inspect the Mortgaged Property (subject to the rights of tenants under the Leases).


 


(3)         If
Lender elects to apply insurance proceeds to the Indebtedness in accordance with the terms of this Loan Agreement, Borrower shall
not be obligated to restore or repair the Mortgaged Property. Rather, Borrower shall restrict access to the damaged portion of
the Mortgaged Property and, at its expense and regardless of whether such costs are covered by insurance, clean up any debris resulting
from the casualty event, and, if required or otherwise permitted by Lender, demolish or raze any remaining part of the damaged
Mortgaged Property to the extent necessary to keep and maintain the Mortgaged Property in a safe, habitable, and marketable condition.
Nothing in this Section 9.03(b) shall affect any of Lender’s remedial rights against Borrower in connection with a breach
by Borrower of any of its obligations under this Loan Agreement or under any Loan Document, including any failure to timely pay
Monthly Debt Service Payments or maintain the insurance coverage(s) required by this Loan Agreement.


 




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(c)          Payment
Obligations Unaffected.


 


The application of
any insurance proceeds to the Indebtedness shall not extend or postpone the Maturity Date, or the due date or the full payment
of any Monthly Debt Service Payment, Monthly Replacement Reserve Deposit, or any other installments referred to in this Loan Agreement
or in any other Loan Document. Notwithstanding the foregoing, if Lender applies insurance proceeds to the Indebtedness in connection
with a casualty of less than the entire Mortgaged Property, and after such application of proceeds the debt service coverage ratio
(as determined by Lender) is less than 1.25x based on the then-applicable Monthly Debt Service Payment and the anticipated on-going
net operating income of the Mortgaged Property after such casualty event, then Lender may, at its discretion, permit an adjustment
to the Monthly Debt Service Payments that become due and owing thereafter, based on Lender’s then-current underwriting requirements.
In no event shall the preceding sentence obligate Lender to make any adjustment to the Monthly Debt Service Payments.


 


(d)          Foreclosure
Sale.


 


If the Mortgaged Property
is transferred pursuant to a Foreclosure Event or Lender otherwise acquires title to the Mortgaged Property, Borrower acknowledges
that Lender shall automatically succeed to all rights of Borrower in and to any insurance policies and unearned insurance premiums
applicable to the Mortgaged Property and in and to the proceeds resulting from any damage to the Mortgaged Property prior to such
Foreclosure Event or such acquisition.


 


(e)          Appointment
of Lender as Attorney-In-Fact.


 


Borrower hereby authorizes
and appoints Lender as attorney-in-fact pursuant to Section 14.03(c).


 


ARTICLE 10
- CONDEMNATION


 


Section 10.01       Representations
and Warranties.


 


The representations
and warranties made by Borrower to Lender in this Section 10.01 are made as of the Effective Date and are true and correct except
as disclosed on the Exceptions to Representations and Warranties Schedule.


 


(a)          Prior
Condemnation Action.


 


No part of the Mortgaged
Property has been taken in connection with a Condemnation Action.


 


(b)          Pending
Condemnation Actions.


 


No Condemnation Action
is pending nor, to Borrower’s knowledge, is threatened for the partial or total condemnation or taking of the Mortgaged
Property.


 




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Section 10.02     Covenants.


 


(a)          Notice
of Condemnation. 


 


Borrower shall:


 


(1)         promptly
notify Lender of any Condemnation Action of which Borrower has knowledge;


 


(2)         appear
in and prosecute or defend, at its own cost and expense, any action or proceeding relating to any Condemnation Action, including
any defense of Lender’s interest in the Mortgaged Property tendered to Borrower by Lender, unless otherwise directed by Lender
in writing; and


 


(3)         execute
such further evidence of assignment of any condemnation award in connection with a Condemnation Action as Lender may require.


 


(b)          Condemnation
Proceeds.


 


Borrower shall pay
to Lender all awards or proceeds of a Condemnation Action promptly upon receipt.


 


Section 10.03      Mortgage
Loan Administration Matters Regarding Condemnation.


 


(a)          Application
of Condemnation Awards.


 


Lender may apply any
awards or proceeds of a Condemnation Action, after the deduction of Lender’s expenses incurred in the collection of such
amounts, to:


 


(1)         the
restoration or repair of the Mortgaged Property, if applicable;


 


(2)         the
payment of the Indebtedness, with the balance, if any, paid to Borrower; or


 


(3)         Borrower.


 


(b)          Payment
Obligations Unaffected.


 


The application of
any awards or proceeds of a Condemnation Action to the Indebtedness shall not extend or postpone the Maturity Date, or the due
date or the full payment of any Monthly Debt Service Payment, Monthly Replacement Reserve Deposit, or any other installments referred
to in this Loan Agreement or in any other Loan Document.


 


(c)          Appointment
of Lender as Attorney-In-Fact.


 


Borrower hereby authorizes
and appoints Lender as attorney-in-fact pursuant to Section 14.03(c).


 




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(d)          Preservation
of Mortgaged Property.


 


If a Condemnation Action
results in or from damage to the Mortgaged Property and Lender elects to apply the proceeds or awards from such Condemnation Action
to the indebtedness in accordance with the terms of this Loan Agreement, Borrower shall not be obligated to restore or repair the
Mortgaged Property. Rather, Borrower shall restrict access to any portion of the Mortgaged Property which has been damaged or destroyed
in connection with such Condemnation Action and, at Borrower’s expense and regardless of whether such costs are covered by
insurance, clean up any debris resulting in or from the Condemnation Action, and, if required by any Governmental Authority or
otherwise permitted by Lender, demolish or raze any remaining part of the damaged Mortgaged Property to the extent necessary to
keep and maintain the Mortgaged Property in a safe, habitable, and marketable condition. Nothing in this Section 10.03(d) shall
affect any of Lender’s remedial rights against Borrower in connection with a breach by Borrower of any of its obligations
under this Loan Agreement or under any Loan Document, including any failure to timely pay Monthly Debt Service Payments or maintain
the insurance coverage(s) required by this Loan Agreement.


 


ARTICLE II
- LIENS, TRANSFERS, AND ASSUMPTIONS


 


Section 11.01       Representations
and Warranties.


 


The representations
and warranties made by Borrower to Lender in this Section 11.01 are made as of the Effective Date and are true and correct except
as disclosed on the Exceptions to Representations and Warranties Schedule.


 


(a)          No
Labor or Materialmen’s Claims.


 


All parties furnishing
labor and materials on behalf of Borrower have been paid in full. There are no mechanics’ or materialmen’s liens (whether
filed or unfiled) outstanding for work, labor, or materials (and no claims or work outstanding that under applicable law could
give rise to any such mechanics’ or materialmen’s liens) affecting the Mortgaged Property, whether prior to, equal
with, or subordinate to the lien of the Security Instrument.


 


(b)          No
Other Interests.


 


No Person:


 


(1)         other
than Borrower has any possessory ownership or interest in the Mortgaged Property or right to occupy the same except under and pursuant
to the provisions of existing Leases, the material terms of all such Leases having been previously disclosed in writing to Lender;
nor


 


(2)         has
an option, right of first refusal, or right of first offer (except as required by applicable law) to purchase the Mortgaged Property,
or any interest in the Mortgaged Property.


 


Section 11.02       Covenants.


 


(a)          Liens;
Encumbrances.


 


Borrower shall not
permit the grant, creation, or existence of any Lien, whether voluntary, involuntary, or by operation of law, on all or any portion
of the Mortgaged Property (including any voluntary, elective, or non-compulsory tax lien or assessment pursuant to a voluntary,
elective, or non-compulsory special tax district or similar regime) other than:


 


(1)         Permitted
Encumbrances;


 




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(2)         the
creation of:


 


(A)         any
tax lien, municipal lien, utility lien, mechanics’ lien, materialmen’s lien, or judgment lien against the Mortgaged
Property if bonded off, released of record, or otherwise remedied to Lender’s satisfaction within sixty (60) days after the
earlier of the date Borrower has actual notice or constructive notice of the existence of such lien; or


 


(B)         any
mechanics’ or materialmen’s liens which attach automatically under the laws of any Governmental Authority upon the
commencement of any work upon, or delivery of any materials to, the Mortgaged Property and for which Borrower is not delinquent
in the payment for any such work or materials; and


 


(3)         the
lien created by the Loan Documents.


 


(b)          Transfers.


 


(1)         Mortgaged
Property.


 


Borrower shall not Transfer, or cause or permit a
Transfer of, all or any part of the Mortgaged Property (including any interest in the Mortgaged Property) other than:


 


(A)         a
Transfer to which Lender has consented in writing;


 


(B)         Leases
permitted pursuant to the Loan Documents;


 


(C)         [reserved];


 


(D)         a
Transfer of obsolete or worn out Personally or Fixtures that are contemporaneously replaced by items of equal or better function
and quality which are free of Liens (other than those created by the Loan Documents);


 


(E)         the
grant of an easement, servitude, or restrictive covenant to which Lender has consented, and Borrower has paid to Lender, upon demand,
all costs and expenses incurred by Lender in connection with reviewing Borrower’s request. Notwithstanding the foregoing,
Borrower shall be permitted to grant an easement over the Mortgaged Property to a publicly operated or private franchise utility
where (a) such easement is between Borrower and the utility, (b) the granting of such easement does not affect Borrower’s
access to the Mortgaged Property or the use of any easements or amenities which benefit the Mortgaged Property, (c) the granting
of such easement does not result in the loss of the use of any units, (d) the granting of such easement does not result in an effect
on the Mortgaged Property’s value or marketability, or on the health or safety of the tenants under any Residential Leases,
that is adverse in any meaningful way, and (e) the consideration paid to Borrower (which consideration may be retained by Borrower
as provided in the following sentence), after deducting Borrower’s costs and expenses incurred in connection with the granting
of such easement, is less than $250 per individual dwelling unit. Prior to the granting of an easement described in the immediately
preceding sentence, Borrower shall (x) provide Lender with copies of the utility easement, for Lender’s review and approval,
which approval shall not be unreasonably withheld, conditioned or delayed, and, (y) deliver evidence reasonably satisfactory to
Lender that conditions in subsections (a) through (e) have been met. So long as no Event of Default exists, any compensation received
from the easement holder shall be paid: first, to cover the expenses of recording the easement; second, to reimburse or pay Lender’s
out of pocket expenses incurred by Lender in connection with its review of the easement in accordance with this Section 11.02(b)(1)(E);
third, if applicable, to pay the cost to repair or restore any portion of the Mortgaged Property damaged as a result of the exercise
of the rights granted by easement holder, to the extent not paid directly by such easement holder, and fourth, to Borrower for
its own account; provided, that in the event any compensation to be retained by the Borrower in accordance with this provision
exceeds $250 per dwelling unit (after deducting Borrower’s costs and expenses incurred in connection with the granting of
such easement), such amounts shall be deposited in the Replacement Reserve Account;


 




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(F)         a
lien permitted pursuant to Section 11.02(a) of this Loan Agreement; or


 


(G)         the
conveyance of the Mortgaged Property following a Foreclosure Event.


 


(2)         Interests
in Borrower, Key Principal, or Guarantor.


 


Other than
a Transfer to which Lender has consented in writing, Borrower shall not Transfer, or cause or permit to be Transferred:


 


(A)         any
direct or indirect ownership interest in Borrower, Key Principal, or Guarantor (if applicable) if such Transfer would cause a change
in Control;


 


(B)         a
direct or indirect Restricted Ownership Interest in Borrower, Key Principal, or Guarantor (if applicable);


 


(C)         fifty
percent (50%) or more of Key Principal’s or Guarantor’s direct or indirect ownership interests in Borrower that existed
on the Effective Date (individually or on an aggregate basis);


 


(D)         the
economic benefits or rights to cash flows attributable to any ownership interests in Borrower, Key Principal, or Guarantor (if
applicable) separate from the Transfer of the underlying ownership interests if the Transfer of the underlying ownership interest
is prohibited by this Loan Agreement; or


 




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(E)         a
Transfer to a new key principal or new guarantor (if such new key principal or guarantor is an entity), which entity has an organizational
existence termination date that ends before the Maturity Date.


 


Notwithstanding the foregoing,
if a Publicly-Held Corporation or a Publicly-Held Trust Controls Borrower, Key Principal, or Guarantor, or owns a direct or indirect
Restricted Ownership Interest in Borrower, Key Principal, or Guarantor, a Transfer of any ownership interests in such Publicly-Held
Corporation or Publicly-Held Trust shall not be prohibited under this Loan Agreement as long as (i) such Transfer does not result
in a conversion of such Publicly-Held Corporation or Publicly-Held Trust to a privately held entity, and (ii) Borrower provides
written notice to Lender not later than thirty (30) days thereafter of any such Transfer that results in any Person owning twenty
percent (20%) or more of the ownership interests in such Publicly-Held Corporation or Publicly-Held Trust.


 


(3)         Name
Change or Entity Conversion.


 


Lender shall
consent to Borrower changing its name, changing its jurisdiction of organization, or converting from one type of legal entity into
another type of legal entity for any lawful purpose, provided that:


 


(A)         Lender
receives written notice at least thirty (30) days prior to such change or conversion, which notice shall include organizational
charts that reflect the structure of Borrower both prior to and subsequent to such name change or entity conversion;


 


(B)         such
Transfer is not otherwise prohibited under the provisions of Section 11.02(b)(2);


 


(C)         Borrower
executes an amendment to this Loan Agreement and any other Loan Documents required by Lender documenting the name change or entity
conversion;


 


(D)         Borrower
agrees and acknowledges, at Borrower’s expense, that (i) Borrower will execute and record in the land records any instrument required
by the Property Jurisdiction to be recorded to evidence such name change or entity conversion (or provide Lender with written
confirmation from the title company (via electronic mail or letter) that no such instrument is required), (ii) Borrower will execute
any additional documents required by Lender, including the amendment to this Loan Agreement, and allow such documents to be recorded
or filed in the land records of the Property Jurisdiction, (iii) Lender will obtain a “date down” endorsement to the
Lender’s Loan Policy (or obtain either (x) a “Form T-38” endorsement pursuant to Procedural Rule P-9.b.(3) or the then
current promulgated form and rule, or (y) a new Loan Policy if a “date down” endorsement is not available in the Property
Jurisdiction), evidencing title to the Mortgaged Property being in the name of the successor entity and the Lien of the Security
Instrument against the Mortgaged Property, and (iv) Lender will file any required UCC-3 financing statement and make any other
filing deemed necessary to maintain the priority of its Liens on the Mortgaged Property; and


 






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(E)         no
later than ten (10) days subsequent to such name change or entity conversion, Borrower shall provide Lender (i) the documentation
filed with the appropriate office in Borrower’s state of formation evidencing such name change or entity conversion, (ii) copies
of the organizational documents of Borrower, including any amendments, filed with the appropriate office in Borrower’s state of
formation reflecting the post-conversion Borrower name, form of organization, and structure, and (iii) if available, new certificates
of good standing or valid formation for Borrower.


 


(4)         No
Delaware Statutory Trust or Series LLC Conversion.


 


Notwithstanding
any provisions herein to the contrary, no Borrower, Guarantor, or Key Principal shall convert to a Delaware Statutory Trust or
a series limited liability company.


 


(c)          No
Other Indebtedness.


 


Other than the Mortgage
Loan, Borrower shall not incur or be obligated at any time with respect to any loan or other indebtedness (except trade payables
as otherwise permitted in this Loan Agreement), including any indebtedness secured by a Lien on, or the cash flows from, the Mortgaged
Property.


 


(d)          No
Mezzanine Financing or Preferred Equity.


 


Neither Borrower nor
any direct or indirect owner of Borrower shall: (1) incur any Mezzanine Debt other than Permitted Mezzanine Debt; (2) issue any
Preferred Equity other than Permitted Preferred Equity; or (3) incur any similar indebtedness or issue any similar equity.


 


Section 11.03         Mortgage
Loan Administration Matters Regarding Liens, Transfers, and Assumptions


 


(a)          Assumption
of Mortgage Loan.


 


Lender shall consent
to a Transfer of the Mortgaged Property to and an assumption of the Mortgage Loan by a new borrower if each of the following conditions
is satisfied prior to the Transfer:


 


(1)         Borrower
has submitted to Lender all information required by Lender to make the determination required by this Section 11.03(a);


 


(2)         no
Event of Default has occurred and is continuing, and no event which, with the giving of written notice or the passage of time,
or both, would constitute an Event of Default has occurred and is continuing;


 




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(3)         Lender
determines that:


 


(A)         the
proposed new borrower, new key principal, and any other new guarantor fully satisfy all of Lender’s then-applicable borrower, key
principal, or guarantor eligibility, credit, management, and other loan underwriting standards, which shall include an analysis
of (i) the previous relationships between Lender and the proposed new borrower, new key principal, new guarantor, and any Person
in Control of them, and the organization of the new borrower, new key principal, and new guarantor (if applicable), and (ii) the
operating and financial performance of the Mortgaged Property, including physical condition and occupancy;


 


(B)         none
of the proposed new borrower, new key principal, and any new guarantor, or any owners of the proposed new borrower, new key principal,
and any new guarantor, are a Prohibited Person; and


 


(C)         none
of the proposed new borrower, new key principal, and any new guarantor (if any of such are entities) shall have an organizational
existence termination date that ends before the Maturity Date;


 


(4)         [reserved];


 


(5)         the
proposed new borrower has:


 


(A)         executed
an assumption agreement acceptable to Lender that, among other things, requires the proposed new borrower to assume and perform
all obligations of Borrower (or any other transferor), and that may require that the new borrower comply with any provisions of
any Loan Document that previously may have been waived by Lender for Borrower, subject to the terms of Section 11.03(g);


 


(B)         if
required by Lender, delivered to the Title Company for filing and/or recording in all applicable jurisdictions, all applicable
Loan Documents including the assumption agreement to correctly evidence the assumption and the confirmation, continuation, perfection,
and priority of the Liens created hereunder and under the other Loan Documents; and


 


(C)         delivered
to Lender a “date-down” endorsement to the Title Policy acceptable to Lender (or either (x) a “Form T-38” endorsement
pursuant to Procedural Rule P-9.b.(3) or the then current promulgated form and ruling, or (y) a new title insurance policy if a
“date-down” endorsement is not available);


 


(6)         one
or more individuals or entities acceptable to Lender as new guarantors have executed and delivered to Lender:


 




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(A)         an
assumption agreement acceptable to Lender that requires the new guarantor to assume and perform all obligations of Guarantor under
any Guaranty given in connection with the Mortgage Loan; or


 


(B)         a
substitute Non-Recourse Guaranty and other substitute guaranty in a form acceptable to Lender;


 


(7)         Lender
has reviewed and approved the Transfer documents; and


 


(8)         Lender
has received the fees described in Section 11.03(g).


 


(b)          Transfers
to Key Principal-Owned Affiliates or Guarantor-Owned Affiliates.


 


(1)         Except
as otherwise covered in Section 11.03(b)(2) below, Transfers of direct or indirect ownership interests in Borrower to Key Principal
or Guarantor, or to a transferee through which Key Principal or Guarantor (as applicable) Controls Borrower with the same rights
and abilities as Key Principal or Guarantor (as applicable) Controls Borrower immediately prior to the date of such Transfer,
shall be consented to by Lender if:


 


(A)         such
Transfer satisfies the applicable requirements of Section 11.03(a), other than Section 11.03(a)(5); and


 


(B)         after
giving effect to any such Transfer, each Key Principal or Guarantor (as applicable) continues to own not less than fifty percent
(50%) of such Key Principal’s or Guarantor’s (as applicable) direct or indirect ownership interests in Borrower that existed on
the Effective Date.


 


(2)         Transfers
of direct or indirect interests in Borrower held by a Key Principal or Guarantor to other Key Principals or Guarantors, as applicable,
shall be consented to by Lender if such Transfer satisfies the following conditions:


 


(A)         the
Transfer does not cause a change in the Control of Borrower; and


 


(B)         the
transferor Key Principal or Guarantor maintains the same right and ability to Control Borrower as existed prior to the Transfer.


 


If the conditions set forth in this Section
11.03(b) are satisfied, the Transfer Fee shall be waived provided Borrower shall pay the Review Fee and out-of-pocket costs set
forth in Section 11.03(g).


 


(c)          Estate
Planning.


 


Notwithstanding the
provisions of Section 11.02(b)(2), so long as (1) the Transfer does not cause a change in the Control of Borrower, and (2) Key
Principal and Guarantor, as applicable, maintain the same right and ability to Control Borrower as existed prior to the Transfer,
Lender shall consent to Transfers of direct or indirect ownership interests in Borrower and Transfers of direct or indirect ownership
interests in an entity Key Principal or entity Guarantor to:


 




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(A)         Immediate
Family Members of such transferor, each of whom must have obtained the legal age of majority;


 


(B)         United
States domiciled trusts established for the benefit of the transferor or Immediate Family Members of the transferor; or


 


(C)         partnerships
or limited liability companies of which the partners or members, respectively, are comprised entirely of (i) such transferor and
Immediate Family Members (each of whom must have obtained the legal age of majority) of such transferor, (ii) Immediate Family
Members (each of whom must have obtained the legal age of majority) of such transferor, or (iii) United States domiciled trusts
established for the benefit of the transferor or Immediate Family Members of the transferor.


 


If the conditions set forth in this Section
11.03(c) are satisfied, the Transfer Fee shall be waived provided Borrower shall pay the Review Fee and out-of-pocket costs set
forth in Section 11.03(g). In addition, Lender shall consent to a Permitted Transfer by Sherwood (not including any Sherwood replacement
guarantors pursuant to Section 11.03(e)) in Borrower (or if Borrower is comprised of Co-Tenants, any Sherwood Affiliate) or in
any other entity which owns, directly or indirectly through one or more intermediate entities, an ownership interest in such Borrower
or Co-Tenant, to (i) Immediate Family Members, or (ii) trusts or other entities established for the benefit of Sherwood and/or
Immediate Family Members of Sherwood; provided, that, following such Permitted Transfer, Sherwood (but not any Sherwood replacement
guarantor pursuant to Section 11.03(e)) maintains the same right and ability to Control Borrower as existed prior to the Transfer.


 


(d)          Termination
or Revocation of Trust.


 


If any of Borrower,
Guarantor, or Key Principal is a trust, or if Control of Borrower, Guarantor, or Key Principal is Transferred or if a Restricted
Ownership Interest in Borrower, Guarantor, or Key Principal would be Transferred due to the termination or revocation of a trust,
the termination or revocation of such trust is an unpermitted Transfer; provided that the termination or revocation of the trust
due to the death of an individual trustor shall not be considered an unpermitted Transfer so long as:


 


(1)         Lender
is notified within thirty (30) days of the death; and


 


(2)         such
Borrower, Guarantor, Key Principal, or other Person, as applicable, is replaced with an individual or entity acceptable to Lender,
in accordance with the provisions of Section 11.03(a) within ninety (90) days of the date of the death causing the termination
or revocation.


 


If the conditions set forth in this Section
11.03(d) are satisfied, the Transfer Fee shall be waived; provided Borrower shall pay the Review Fee and out-of-pocket costs set
forth in Section 11.03(g).


 


(e)          Death
of Key Principal or Guarantor; Transfer Due to Death.


 


(1)         If
a Key Principal or Guarantor that is a natural person dies, or if Control of Borrower, Guarantor, or Key Principal is
Transferred, or if a Restricted Ownership Interest in Borrower, Guarantor, or Key Principal would be Transferred as a result
of the death of a Person (except in the case of trusts which is addressed in Section 11.03(d)), Borrower must notify Lender
in writing within ninety (90) days in the event of such death. Unless waived in writing by Lender, the deceased shall be
replaced by an individual or entity within one hundred eighty (180) days, subject to Borrower’s satisfaction of the following
conditions:


 






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(A)          Borrower
has submitted to Lender all information required by Lender to make the determination required by this Section 11.03(e);


 


(B)          Lender
determines that, if applicable:


 


(i)          any
proposed new key principal and any other new guarantor (or Person Controlling such new key principal or new guarantor) fully satisfies
all of Lender’s then-applicable key principal or guarantor eligibility, credit, management, and other loan underwriting standards
(including any standards with respect to previous relationships between Lender and the proposed new key principal and new guarantor
(or Person Controlling such new key principal or new guarantor) and the organization of the new key principal and new guarantor);


 


(ii)         none
of any proposed new key principal or any new guarantor, or any owners of the proposed new key principal or any new guarantor, is
a Prohibited Person; and


 


(iii)        none
of any proposed new key principal or any new guarantor (if any of such are entities) shall have an organizational existence termination
date that ends before the Maturity Date; and


 


(C)         if
applicable, one or more individuals or entities acceptable to Lender as new guarantors have executed and delivered to Lender:


 


(i)          an
assumption agreement acceptable to Lender that requires the new guarantor to assume and perform all obligations of Guarantor under
any Guaranty given in connection with the Mortgage Loan; or


 


(ii)         a
substitute Non-Recourse Guaranty and other substitute guaranty in a form acceptable to Lender.


 


(2)         In
the event a replacement Key Principal, Guarantor, or other Person is required by Lender due to the death described in this Section
11.03(e), and such replacement has not occurred within such period, the period for replacement may be extended by Lender to a
date not more than one year from the date of such death; however, Lender may require as a condition to any such extension that:


 


(A)         the
then-current property manager be replaced with a property manager reasonably acceptable to Lender (or if a property manager has
not been previously engaged, a property manager reasonably acceptable to Lender be engaged); or


 




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(B)         a
lockbox agreement or similar cash management arrangement (with the property manager) reasonably acceptable to Lender during such
extended replacement period be instituted.


 


If the conditions set forth in this Section
11.03(e) are satisfied, the Transfer Fee shall be waived, provided Borrower shall pay the Review Fee and out-of-pocket costs set
forth in Section 11.03(g).


 


(f)          Bankruptcy
of Guarantor.


 


(1)         Upon
the occurrence of any Guarantor Bankruptcy Event, unless waived in writing by Lender, the applicable Guarantor shall be replaced
by an individual or entity within ninety (90) days of such Guarantor Bankruptcy Event, subject to Borrower’s satisfaction of the
following conditions:


 


(A)         Borrower
has submitted to Lender all information required by Lender to make the determination required by this Section 11.03(f);


 


(B)         Lender
determines that:


 


(i)          the
proposed new guarantor fully satisfies all of Lender’s then-applicable guarantor eligibility, credit, management, and other loan
underwriting standards (including any standards with respect to previous relationships between Lender and the proposed new guarantor
and the organization of the new guarantor (if applicable));


 


(ii)         no
new guarantor is a Prohibited Person; and


 


(iii)        no
new guarantor (if any of such are entities) shall have an organizational existence termination date that ends before the Maturity
Date; and


 


(C)         one
or more individuals or entities acceptable to Lender as new guarantors have executed and delivered to Lender:


 


(i)          an
assumption agreement acceptable to Lender that requires the new guarantor to assume and perform all obligations of Guarantor under
any Guaranty given in connection with the Mortgage Loan; or


 


(ii)         a
substitute Non-Recourse Guaranty and other substitute guaranty in a form acceptable to Lender.


 


(2)         In
the event a replacement Guarantor is required by Lender due to the Guarantor Bankruptcy Event described in this Section 11.03(f),
and such replacement has not occurred within such period, the period for replacement may be extended by Lender in its discretion;
however, Lender may require as a condition to any such extension that:


 


(A)         the
then-current property manager be replaced with a property manager reasonably acceptable to Lender (or if a property manager
has not been previously engaged, a property manager reasonably acceptable to Lender be engaged); or


 




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(B)         a
lockbox agreement or similar cash management arrangement (with the property manager) reasonably acceptable to Lender during such
extended replacement period be instituted.


 


If the conditions set forth in this Section
11.03(f) are satisfied, the Transfer Fee shall be waived, provided Borrower shall pay the Review Fee and out-of-pocket costs set
forth in Section 11.03(g).


 


(g)          Further Conditions to
Transfers and Assumption.


 


(1)         In
connection with any Transfer of the Mortgaged Property, or an ownership interest in Borrower, Key Principal, or Guarantor for
which Lender’s approval is required under this Loan Agreement (including Section 11.03(a)), Lender may, as a condition to any
such approval, require:


 


(A)         additional
collateral, guaranties, or other credit support to mitigate any risks concerning the proposed transferee or the performance or
condition of the Mortgaged Property;


 


(B)         amendment
of the Loan Documents to delete or modify any specially negotiated terms or provisions previously granted for the exclusive benefit
of original Borrower, Key Principal, or Guarantor and to restore the original provisions of the standard Fannie Mae form multifamily
loan documents, to the extent such provisions were previously modified; or


 


(C)         a
modification to the amounts required to be deposited into the Reserve/Escrow Account pursuant to the terms of Section 13.02(a)(3)(B).


 


(2)         In
connection with any request by Borrower for consent to a Transfer, Borrower shall pay to Lender upon demand:


 


(A)         the
Transfer Fee (to the extent charged by Lender);


 


(B)         the
Review Fee (regardless of whether Lender approves or denies such request); and


 


(C)         all
of Lender’s out-of-pocket costs (including reasonable attorneys’ fees) incurred in reviewing the Transfer request, regardless of
whether Lender approves or denies such request.


 


(h)          Additional
Conditionally Permitted Transfers.


 


Notwithstanding anything
in Section 11.02(b) of the Loan Agreement to the contrary and in addition to, and without limiting, any Transfer that would otherwise
be permitted under Section 11.02(b) of the Loan Agreement, the occurrence of the following shall not constitute an Event of Default
under the Loan Agreement and shall be permitted without payment of the Transfer Fee:


 


(1)         a
Transfer of any direct or indirect interest in Borrower held by an entity owned or Controlled by any Guarantor or Key Principal
to one or more of such Guarantor’s or Key Principal’s Affiliates (“Affiliate Transfer”) provided that:


 




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(A)         Borrower
has submitted to Lender all information required by Lender to make the determination required by this Section;


 


(B)         No
Event of Default has occurred, and no event which, with the giving of notice or the passage of time, or both, would constitute
an Event of Default has occurred and is continuing;


 


(C)         Lender
determines, in lender’s discretion, that the Affiliate meets Lender’s eligibility, credit, management and other standards;


 


(D)         Following
the Affiliate Transfer, Control and management of the day-to-day operations of Borrower continue to be held by the Person exercising
such Control and management immediately prior to the Affiliate Transfer;


 


(E)         Borrower
delivers to Lender for each transferee with an interest of 25% or more a certification that (a) he/she has not been convicted of
fraud or a crime involving moral turpitude (or if an entity, then no principal of such entity has been convicted of fraud or a
crime involving moral turpitude), and (b) he/she/it has not been involved in a bankruptcy or reorganization within the ten years
preceding the Notice to Lender;


 


(F)         No
transferee is a Prohibited Person;


 


(G)         Lender
has reviewed and approved the Affiliate Transfer documents and received organizational charts reflecting the structure of Borrower
prior to and after the Affiliate Transfer and copies of the then-current organizational documents of Borrower, including any amendments;


 


(H)         Borrower
provides Lender with at least 30 days prior written notice of the proposed Affiliate Transfer and pays the Review Fee in conjunction
with the delivery of such prior written notice;


 


(I)         Borrower
pays or reimburses Lender, upon demand, for all of Lender’s out-of-pocket costs (including reasonable attorneys’ fees) incurred
in reviewing the Affiliate Transfer request; and


 


(J)         Lender
receives confirmation acceptable to Lender that Section 4.02(d) continues to be satisfied;


 


(2)         As
used in Section 11.03(h)(1) only “Affiliate” means, as to each Guarantor or Key Principal respectively:


 


(A)         any
entity that directly or indirectly owns, Controls or holds with power to vote, twenty percent (20%) or more of the outstanding
voting securities of the Guarantor or Key Principal;


 


(B)         any
entity in which the Guarantor or Key Principal directly or indirectly owns, Controls or holds with the power to vote, twenty percent
(20%) or more of the outstanding voting securities of the entity; or


 






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(C)         any
entity Controlled by or under common Control with, or which Controls the Guarantor or Key Principal (the term “Control”
for these purposes means the ability, whether by the ownership of shares or other equity interests, by contract or otherwise,
to elect a majority of the directors of a corporation, to make management decisions on behalf of, or independently to select the
managing partner of, a partnership, or otherwise to have the power independently to remove and then select a majority of those
individuals exercising managerial authority over an entity, and Control shall be conclusively presumed in the case of the ownership
of fifty percent (50%) or more of the equity interests).


 


(3)         a
Transfer (a “BR to CWS Transfer”) of the membership interests in BR CWS 2017 Portfolio JV, LLC, a Delaware limited
liability company (“Venture”), the sole member of Borrower, by BR CWS Portfolio Member, LLC, a Delaware limited liability
company (“BR Member”), to CWS 2017 Portfolio, LLC, a Delaware limited liability company (“CWS Member”).
The following provisions shall apply in connection with any BR to CWS Transfer:


 


(A)         Following
the BR to CWS Transfer, (i) Control of Borrower will be held, directly or indirectly, by CWS SAF X LLC, a Delaware limited liability
company, the manager of the CWS Member, (ii) Control of CWS Member continues to be held, directly or indirectly, by Steven J. Sherwood
and The Steven Sherwood Trust, Established September 8, 1994, a California trust (the “CWS Guarantor”) and (iii) the
CWS Guarantor continues to have a direct or indirect ownership interest in CWS Member. Borrower and Guarantor shall provide Lender
with written certification of the same within fifteen (15) days prior to such Transfer;


 


(B)         no
Event of Default has occurred, and no event which, with the giving of notice or passage of time, or both, would constitute an Event
of Default has occurred and is continuing, and Borrower shall provide Lender with written certification of the same within fifteen
(15) days prior to such Transfer; provided, however, if the existence of an Event of Default has arisen out of the acts or omissions
of the BR Member that are personal defaults of such member (e.g., a Transfer by such member or its affiliates that is not permitted
under the Loan Documents or the occurrence of a Bankruptcy Event with respect to such member or its affiliates), and the CWS Member
has elected to exercise its buy out rights in order to cure such Event of Default, then the CWS Member may proceed under this Section
11.03(h)(3) to acquire the interests of the BR Member as long as such acquisition and cure are effectuated within sixty (60) days;


 


(C)         Lender
has received and approved the Transfer documents and received organizational charts reflecting the structure of Borrower prior
to and after the Transfer, and copies of the then-current organizational documents of Borrower, including any amendments;


 


(D)         Borrower
provides Lender with at least fifteen (15) days’ prior written notice of the proposed Transfer and pays the Review Fee in conjunction
with the delivery of such prior written notice;


 


(E)         Borrower
pays or reimburses Lender, upon demand, for all of Lender’s out-of-pocket costs (including reasonable attorneys’ fees) incurred
in reviewing the Transfer request;


 


(F)         the
CWS Guarantor shall reaffirm its status as a Guarantor.


 




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(4)         a
Transfer (a “CWS to BR Transfer”) of the membership interests in Venture by the CWS Member to the BR Member.
The following provisions shall apply in connection with any CWS to BR Transfer:


 


(A)         following
the CWS to BR Transfer, Control of Borrower continues to be held, directly or indirectly, by Bluerock Residential Growth REIT,
Inc. (the “BR Key Principal”), the BR Key Principal continues to have a direct or indirect ownership interest
in BR Member and Borrower shall provide Lender with written certification of the same within fifteen (15) days prior to such Transfer;


 


(B)         no
Event of Default has occurred, and no event which, with the giving of notice or passage of time, or both, would constitute an Event
of Default has occurred and is continuing, and Borrower shall provide Lender with written certification of the same within fifteen
(15) days prior to such Transfer; provided, however, if the existence of an Event of Default has arisen out of the acts or omissions
of the CWS Member that are personal defaults of such member (e.g., a Transfer by such member or its affiliates that is not permitted
under the Loan Documents or the occurrence of a Bankruptcy Event with respect to such member or its affiliates), and the BR Member
has elected to exercise its buy out rights in order to cure such Event of Default, then the BR Member may proceed under this Section
11.03(h)(4) to acquire the interests of the CWS Member as long as such acquisition and cure are effectuated within sixty (60) days;


 


(C)         Lender
has received and approved the Transfer documents and received organizational charts reflecting the structure of Borrower prior
to and after the Transfer, and copies of the then-current organizational documents of Borrower, including any amendments;


 


(D)         Borrower
provides Lender with at least fifteen (15) days’ prior written notice of the proposed Transfer and pays the Review Fee in conjunction
with the delivery of such prior written notice;


 


(E)         Borrower
pays or reimburses Lender, upon demand, for all of Lender’s out-of-pocket costs (including reasonable attorneys’ fees) incurred
in reviewing the Transfer request;


 


(F)         the
BR Key Principal (Lender having pre-approved the BR Key Principal as having met all applicable Guarantor applicability, credit,
management and other loan underwriting standards) or another affiliate of BR Member acceptable to Lender shall execute a substitute
Non-Recourse Guaranty, and Lender will release CWS Guarantor from all of its obligations under the Guaranty; provided, however,
that:


 


(i)          CWS
Guarantor is not released from any liability pursuant to the Guaranty relating to the Environmental Indemnity Agreement for any
liability that relates to the period prior to the date of the Transfer, regardless of when such environmental hazard is discovered;


 


(ii)         With
respect to a Non-Recourse Guaranty executed by an affiliate of BR Member other than BR Key Principal, Lender determines that the
affiliate of the BR Member satisfies all of Lender’s then- applicable guarantor applicability, credit
management and other loan underwriting standards; and


 






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(iii) With
respect to a Non-Recourse Guaranty executed by BR Key Principal, BR Key Principal provides Lender with a certification of no material
adverse change satisfactory to Lender.


 


For the avoidance
of doubt, if any Transfers prohibited under this Section 11.03(h) conflict with any provisions of Section 11.02 of this Loan Agreement,
the provisions of this Section 11.03(h) shall be deemed to Control.


 


Section 11.04         Permitted
Transfers and Permitted Property Transfers to Sherwood Affiliates


 


Notwithstanding anything to the contrary
set forth in this Loan Agreement, subsequent to or concurrently with a BR to CWS Transfer, the occurrence of any of the Permitted
Transfers or Permitted Property Transfers set forth in this Section 11.04 shall not constitute an Event of Default and shall not
require the payment of any Transfer Fee so long as all of the conditions for such Permitted Transfer or Permitted Property Transfer,
as applicable, set forth below have been satisfied.


 


(a)          Requirements
for Permitted Transfers and Permitted Property Transfers


 


The following conditions
shall be required to be satisfied as specifically set forth in subsections (b), or (c) of this Section 11.04:


 


(1)         Borrower
shall give at least thirty (30) days prior written notice of the Permitted Transfer or Permitted Property Transfer to Lender, which
notice shall be accompanied by a non-refundable Review Fee;


 


(2)         No
Event of Default shall have occurred and no event or condition shall have occurred and be continuing that, with the giving of notice
or the passage of time, or both, would become an Event of Default. Notwithstanding anything to the contrary of the foregoing, if
(A) a curable default or an Event of Default shall have occurred and be continuing, (B) a Sherwood Affiliate is the transferee
of the Permitted Transfer or Permitted Property Transfer, and (C) completion of such Permitted Transfer or Permitted Property Transfer
is required to cure such curable default or Event of Default, then Borrower shall have a period of sixty (60) days to cure such
default or Event of Default following such Permitted Transfer or Permitted Property Transfer, time being of the essence;


 


(3)         Borrower
shall satisfy all conditions set forth in Section 11.03(a)(1), (3) and (7) and shall provide all necessary information and documents,
including organizational charts, financial statements, any new or amended Tenancy in Common Agreement (if applicable) and other
underwriting documentation, as required by Lender;


 


(4)         Borrower
shall reimburse Lender, upon demand, for all costs and expenses in connection with such Permitted Transfer or Permitted Property
Transfer, including the costs of all title searches, title insurance and recording costs, pursuant to the terms of Section 11.03(g)(2);


 






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(5)         In
the case of a Permitted Property Transfer, any new Borrower or Co-Tenant shall execute an assumption agreement which
requires such new Borrower or Co-Tenant to perform all obligations of the Borrower set forth in the Note, this Loan
Agreement and in any other Loan Document, and Borrower shall provide Lender with (A) a title policy or an endorsement
reflecting the change in ownership of the Mortgaged Property (or obtain a “Form T-38” endorsement, pursuant to
Procedural Rule P-9.b.(3), or the then current promulgated form and rule), (B) a recorded copy of the assumption agreement,
(C) a recorded copy of the transfer deed, and (D) if Borrower is comprised of 2 or more Co-Tenants, a certification from
Borrower, including any new Co-Tenant, reaffirming each of the representations and warranties set forth in Exhibit A; and


 


(6)         The
Mortgaged Property continues to be managed by (i) the same property manager managing the Mortgaged Property prior to the Permitted
Transfer or Permitted Property Transfer, or (ii) a successor property manager shall be hired as approved by Lender and in accordance
with the terms and conditions set forth in Section 6.03.


 


(b)          Permitted
Transfer to a Sherwood Affiliate


 


Lender shall consent
to a Permitted Transfer to a Sherwood Affiliate provided that the following conditions have been satisfied:


 


(1)         Borrower
shall satisfy all conditions set forth in Section 11.04(a)(1)-(6) above;


 


(2)         If
Borrower is comprised of two (2) or more Co-Tenants, Sherwood shall maintain Control of (A) each of the Sherwood Co-Tenants, and
(B) the general partner, managing member, manager or Controlling shareholder, as applicable, of each of the Sherwood Co-Tenants.
If the Borrower is not comprised of Co-Tenants, Sherwood shall maintain Control of (A) Borrower, and (B) the general partner, managing
member, manager or Controlling shareholder, as applicable, of Borrower; and


 


(3)         Sherwood
shall maintain the Required Sherwood Ownership Percentages.


 


(c)          Permitted
Property Transfer to Sherwood Affiliates


 


Lender shall consent
to a Permitted Property Transfer to a Sherwood Affiliate provided that the following conditions have been satisfied:


 


(1)         Borrower
shall satisfy all conditions set forth in Section 11.04(a)(1)-(6) above, and each Guarantor has reaffirmed in writing its obligations
under the Guaranty;


 


(2)         Sherwood
shall maintain Control of (A) the Sherwood Affiliate that is the transferee of the Permitted Property Transfer, and (B) the general
partner, managing member, manager or Controlling shareholder, as applicable, of such Sherwood Affiliate;


 


(3)         Sherwood
shall maintain the Required Sherwood Ownership Percentages; and


 


(4)         If
Borrower is comprised of 2 or more Co-Tenants, the total number of Co-Tenants comprising Borrower shall not exceed six (6).


 




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ARTICLE 12
- IMPOSITIONS


 


Section 12.01         Representations
and Warranties.


 


The representations
and warranties made by Borrower to Lender in this Section 12.01 are made as of the Effective Date and are true and correct except
as disclosed on the Exceptions to Representations and Warranties Schedule.


 


(a)          Payment
of Taxes, Assessments, and Other Charges.


 


Borrower has:


 


(1)         paid
(or with the approval of Lender, established an escrow fund sufficient to pay when due and payable) all amounts and charges relating
to the Mortgaged Property that have become due and payable before any fine, penalty interest, lien, or costs may be added thereto,
including Impositions, leasehold payments, and ground rents;


 


(2)         paid
all Taxes for the Mortgaged Property that have become due before any fine, penalty interest, lien, or costs may be added thereto
pursuant to any notice of assessment received by Borrower and any and all taxes that have become due against Borrower before any
fine, penalty interest, lien, or costs may be added thereto;


 


(3)         no
knowledge of any basis for any additional assessments;


 


(4)         no
knowledge of any presently pending special assessments against all or any part of the Mortgaged Property, or any presently pending
special assessments against Borrower; and


 


(5)         not
received any written notice of any contemplated special assessment against the Mortgaged Property, or any contemplated special
assessment against Borrower.


 


Section 12.02         Covenants.


 


(a)          Imposition
Deposits, Taxes, and Other Charges.


 


Borrower shall:


 


(1)         deposit
the Imposition Deposits with Lender on each Payment Date (or on another day designated in writing by Lender) in amount sufficient,
in Lender’s discretion, to enable Lender to pay each Imposition before the last date upon which such payment may be made without
any penalty or interest charge being added, plus an amount equal to no more than one-sixth (1/6) (or the amount permitted by applicable
law) of the Impositions for the trailing twelve (12) months (calculated based on the aggregate annual Imposition costs divided
by twelve (12) and multiplied by two (2));


 


(2)         deposit
with Lender, within ten (10) days after written notice from Lender (subject to applicable law), such additional amounts estimated
by Lender to be reasonably necessary to cure any deficiency in the amount of the Imposition Deposits held for payment of a specific
Imposition;


 




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(3)         except
as set forth in Section 12.03(c) below, pay all Impositions, leasehold payments, ground rents, and Taxes when due and before any
fine, penalty, interest, lien, or costs may be added thereto;


 


(4)         promptly
deliver to Lender a copy of all notices of, and invoices for, Impositions, and, if Borrower pays any Imposition directly, Borrower
shall promptly furnish to Lender receipts evidencing such payments; and


 


(5)         promptly
deliver to Lender a copy of all notices of any special assessments and contemplated special assessments against the Mortgaged Property
or Borrower.


 


Section 12.03         Mortgage
Loan Administration Matters Regarding Impositions.


 


(a)          Maintenance
of Records by Lender.


 


Lender shall maintain
records of the monthly and aggregate Imposition Deposits held by Lender for the purpose of paying Taxes, insurance premiums, and
each other obligation of Borrower for which Imposition Deposits are required.


 


(b)          Imposition
Accounts.


 


All Imposition Deposits
shall be held in an institution (which may be Lender, if Lender is such an institution) whose deposits or accounts are insured
or guaranteed by a federal agency and which accounts meet the standards for custodial accounts as required by Lender from time
to time. Lender shall not be obligated to open additional accounts, or deposit Imposition Deposits in additional institutions,
when the amount of the Imposition Deposits exceeds the maximum amount of the federal deposit insurance or guaranty. No interest,
earnings, or profits on the Imposition Deposits shall be paid to Borrower unless applicable law so requires. Imposition Deposits
shall not be trust funds, nor shall they operate to reduce the Indebtedness, unless applied by Lender for that purpose in accordance
with this Loan Agreement. For the purposes of 9-104(a)(3) of the UCC, Lender is the owner of the Imposition Deposits and shall
be deemed a “customer” with sole control of the account holding the Imposition Deposits.


 


(c)          Payment
of Impositions; Sufficiency of Imposition Deposits.


 


Lender may pay an Imposition
according to any bill, statement, or estimate from the appropriate public office or insurance company without inquiring into the
accuracy of the bill, statement, or estimate or into the validity of the Imposition. Imposition Deposits shall be required to be
used by Lender to pay Taxes, insurance premiums and any other individual Imposition only if:


 


(1)         no
Event of Default exists;


 


(2)         Borrower
has timely delivered to Lender all applicable bills or premium notices that it has received; and


 


(3)         sufficient
Imposition Deposits are held by Lender for each Imposition at the time such Imposition becomes due and payable.


 


Lender shall have
no liability to Borrower or any other Person for failing to pay any Imposition if any of the conditions are not satisfied. If
at any time the amount of the Imposition Deposits held for payment of a specific Imposition exceeds the amount reasonably deemed
necessary by Lender to be held in connection with such Imposition, the excess may be credited against future installments of Imposition
Deposits for such Imposition.


 






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(d)          Imposition
Deposits Upon Event of Default.


 


If an Event of Default
has occurred and is continuing, Lender may apply any Imposition Deposits, in such amount and in such order as Lender determines,
to pay any Impositions or as a credit against the Indebtedness.


 


(e)          Contesting
Impositions.


 


Other than insurance
premiums, Borrower may contest, at its expense, by appropriate legal proceedings, the amount or validity of any Imposition if:


 


(1)         Borrower
notifies Lender of the commencement or expected commencement of such proceedings;


 


(2)         Lender
determines that the Mortgaged Property is not in danger of being sold or forfeited;


 


(3)         Borrower
deposits with Lender (or the applicable Governmental Authority if required by applicable law) reserves sufficient to pay the contested
Imposition, if required by Lender (or the applicable Governmental Authority);


 


(4)         Borrower
furnishes whatever additional security is required in the proceedings or is reasonably requested in writing by Lender; and


 


(5)         Borrower
commences, and at all times thereafter diligently prosecutes, such contest in good faith until a final determination is made by
the applicable Governmental Authority.


 


(f)            Release to Borrower.


 


Upon payment in full
of all sums secured by the Security Instrument and this Loan Agreement and release by Lender of the lien of the Security Instrument,
Lender shall disburse to Borrower the balance of any Imposition Deposits then on deposit with Lender.


 


ARTICLE 13
- REPLACEMENT RESERVE AND REPAIRS


 


Section 13.01         Covenants.


 


(a)          Initial
Deposits to Replacement Reserve Account and Repairs Escrow


Account.


 


On the Effective Date, Borrower shall pay to Lender:


 


(1)         the
Initial Replacement Reserve Deposit for deposit into the Replacement Reserve Account; and


 


(2)         the
Repairs Escrow Deposit for deposit into the Repairs Escrow Account.


 




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(b)          Monthly
Replacement Reserve Deposits.


 


Borrower shall deposit
the applicable Monthly Replacement Reserve Deposit into the Replacement Reserve Account on each Payment Date.


 


(c)          Payment
for Replacements and Repairs.


 


Borrower shall:


 


(1)         pay
all invoices for the Replacements and Repairs, regardless of whether funds on deposit in the Replacement Reserve Account or the
Repairs Escrow Account, as applicable, are sufficient, prior to any request for disbursement from the Replacement Reserve Account
or the Repairs Escrow Account, as applicable (unless Lender has agreed to issue joint checks in connection with a particular Replacement
or Repair);


 


(2)         pay
all applicable fees and charges of any Governmental Authority on account of the Replacements and Repairs, as applicable; and


 


(3)         provide
evidence satisfactory to Lender of completion of the Replacements and any Required Repairs (within the Completion Period or within
such other period or by such other date set forth in the Required Repair Schedule and any Borrower Requested Repairs and Additional
Lender Repairs (by the date specified by Lender for any such Borrower Requested Repairs or Additional Lender Repairs)).


 


(d)          Assignment
of Contracts for Replacements and Repairs.


 


Borrower shall collaterally
assign to Lender as additional security any contract or subcontract for Replacements or Repairs, upon Lender’s written request,
on a form of assignment approved by Lender.


 


(e)          Indemnification.


 


If Lender elects to
exercise its rights under Section 14.02 due to Borrower’s failure to timely commence or complete any Replacements or Repairs, Borrower
shall indemnify and hold Lender harmless for, from and against any and all actions, suits, claims, demands, liabilities, losses,
damages, obligations, and costs or expenses, including litigation costs and reasonable attorneys’ fees, arising from or in any
way connected with the performance by Lender of the Replacements or Repairs or investment of the Reserve/Escrow Account Funds;
provided that Borrower shall have no indemnity obligation for the actual cost of completing such Replacements or Repairs, or if
such actions, suits, claims, demands, liabilities, losses, damages, obligations, and costs or expenses, including litigation costs
and reasonable attorneys’ fees, arise as a result of the willful misconduct or gross negligence of Lender, Lender’s agents, employees,
or representatives as determined by a court of competent jurisdiction pursuant to a final non-appealable court order.


 


(f)           Amendments to Loan Documents.


 


Subject to Section
5.02, Borrower shall execute and deliver to Lender, upon written request, an amendment to this Loan Agreement, the Security Instrument,
and any other Loan Document deemed necessary or desirable to perfect Lender’s lien upon any portion of the Mortgaged Property for
which Reserve/Escrow Account Funds were expended.


 




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(g)          Administrative
Fees and Expenses.


 


Borrower shall pay to Lender:


 


(1)         by
the date specified in the applicable invoice, the Repairs Escrow Account Administrative Fee and the Replacement Reserve Account
Administration Fee for Lender’s services in administering the Repairs Escrow Account and Replacement Reserve Account and investing
the funds on deposit in the Repairs Escrow Account and the Replacement Reserve Account, respectively;


 


(2)         upon
demand, a reasonable inspection fee, not exceeding the Maximum Inspection Fee, for each inspection of the Mortgaged Property by
Lender in connection with a Repair or Replacement, plus all other reasonable costs and out-of-pocket expenses relating to such
inspections; and


 


(3)         upon
demand, all reasonable fees charged by any engineer, architect, inspector or other person inspecting the Mortgaged Property on
behalf of Lender for each inspection of the Mortgaged Property in connection with a Repair or Replacement, plus all other reasonable
costs and out-of-pocket expenses relating to such inspections.


 


Section 13.02         Mortgage
Loan Administration Matters Regarding Reserves.


 


(a)          Accounts,
Deposits, and Disbursements.


 


(1)         Custodial
Accounts.


 


(A)         The
Replacement Reserve Account shall be an interest-bearing account that meets the standards for custodial accounts as required by
Lender from time to time. Lender shall not be responsible for any losses resulting from the investment of the Replacement Reserve
Deposits or for obtaining any specific level or percentage of earnings on such investment. All interest, if any, earned on the
Replacement Reserve Deposits shall be added to and become part of the Replacement Reserve Account; provided, however, if
applicable law requires, and so long as no Event of Default has occurred and is continuing under any of the Loan Documents, Lender
shall pay to Borrower the interest earned on the Replacement Reserve Account not less frequently than the Replacement Reserve
Account Interest Disbursement Frequency. In no event shall Lender be obligated to disburse funds from the Reserve/Escrow Account
if an Event of Default has occurred and is continuing.


 


(B)         Lender
shall not be obligated to deposit the Repairs Escrow Deposits into an interest-bearing account.


 


(2)         Disbursements
by Lender Only.


 


Only Lender
or a designated representative of Lender may make disbursements from the Replacement Reserve Account and the Repairs Escrow Account.
Except as provided in Section 13.02(a)(8), disbursements shall only be made upon Borrower request and after satisfaction of all
conditions for disbursement.


 




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(3)         Adjustment
to Deposits.


 


(A)         Mortgage
Loan Terms Exceeding Ten (10) Years.


 


If the Loan
Term exceeds ten (10) years (or five (5) years in the case of any Mortgaged Property that is an “affordable housing property”
as indicated on the Summary of Loan Terms), a property condition assessment shall be ordered by Lender for the Mortgaged Property
at the expense of Borrower (which expense may be paid out of the Replacement Reserve Account if excess funds are available). The
property condition assessment shall be performed no earlier than the sixth (6th) month and no later than the ninth (9th) month
of the tenth (10th) Loan Year and every tenth (10th) Loan Year thereafter if the Loan Term exceeds twenty (20) years (or the fifth
(5th) Loan Year in the case of any Mortgaged Property that is an “affordable housing property” as indicated on the Summary
of Loan Terms and every fifth (5th) Loan Year thereafter if the Loan Term exceeds ten (10) years). After review of the property
condition assessment, the amount of the Monthly Replacement Reserve Deposit may be adjusted by Lender for the remaining Loan Term
by written notice to Borrower so that the Monthly Replacement Reserve Deposits are sufficient to fund the Replacements as and when
required and/or the amount to be held in the Repairs Escrow Account may be adjusted by Lender so that the Repairs Escrow Deposit
is sufficient to fund the Repairs as and when required


 


(B)         Transfers.


 


In connection
with any Transfer of the Mortgaged Property, or any Transfer of an ownership interest in Borrower, Guarantor, or Key Principal
that requires Lender’s consent, Lender may review the amounts on deposit, if any, in the Replacement Reserve Account or the Repairs
Escrow Account, the amount of the Monthly Replacement Reserve Deposit and the likely repairs and replacements required by the Mortgaged
Property, and the related contingencies which may arise during the remaining Loan Term. Based upon that review, Lender may require
an additional deposit to the Replacement Reserve Account or the Repairs Escrow Account, or an increase in the amount of the Monthly
Replacement Reserve Deposit as a condition to Lender’s consent to such Transfer.


 


(4)         Insufficient
Funds.


 


Lender may,
upon thirty (30) days’ prior written notice to Borrower, require an additional deposit(s) to the Replacement Reserve Account or
Repairs Escrow Account, or an increase in the amount of the Monthly Replacement Reserve Deposit, if Lender determines that the
amounts on deposit in either the Replacement Reserve Account or the Repairs Escrow Account are not sufficient to cover the costs
for Required Repairs or Required Replacements or, pursuant to the terms of Section 13.02(a)(9), not sufficient to cover the costs
for Borrower Requested Repairs, Additional Lender Repairs, Borrower Requested Replacements, or Additional Lender Replacements.
Borrower’s agreement to complete the Replacements or Repairs as required by this Loan Agreement shall not be affected by the insufficiency
of any balance in the Replacement Reserve Account or the Repairs Escrow Account, as applicable.


 




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(5)         Disbursements
for Replacements and Repairs.


 


(A)         Disbursement
requests may only be made after completion of the applicable Replacements and only to reimburse Borrower for the actual approved
costs of the Replacements. Lender shall not disburse from the Replacement Reserve Account the costs of routine maintenance to the
Mortgaged Property or for costs which are to be reimbursed from the Repairs Escrow Account or any similar account. Disbursement
from the Replacement Reserve Account shall not be made more frequently than the Maximum Replacement Reserve Disbursement Interval.
Other than in connection with a final request for disbursement, disbursements from the Replacement Reserve Account shall not be
less than the Minimum Replacement Reserve Disbursement Amount.


 


(B)         Disbursement
requests may only be made after completion of the applicable Repairs and only to reimburse Borrower for the actual cost of the
Repairs, up to the Maximum Repair Cost. Lender shall not disburse any amounts which would cause the funds remaining in the Repairs
Escrow Account after any disbursement (other than with respect to the final disbursement) to be less than the Maximum Repair Cost
of the then-current estimated cost of completing all remaining Repairs. Lender shall not disburse from the Repairs Escrow Account
the costs of routine maintenance to the Mortgaged Property or for costs which are to be reimbursed from the Replacement Reserve
Account or any similar account. Disbursement from the Repairs Escrow Account shall not be made more frequently than the Maximum
Repair Disbursement Interval. Other than in connection with a final request for disbursement, disbursements from the Repairs Escrow
Account shall not be less than the Minimum Repairs Disbursement Amount.


 


(6)         Disbursement
Requests.


 


Each request
by Borrower for disbursement from the Replacement Reserve Account or the Repairs Escrow Account must be in writing, must specify
the Replacement or Repair for which reimbursement is requested (provided that for any Borrower Requested Replacements, Borrower
Requested Repairs, Additional Lender Replacements, and Additional Lender Repairs, Lender shall have approved the use of the Reserve/Escrow
Account Funds for such replacements or repairs pursuant to the terms of Section 13.02(a)(9)), and must:


 


(A)         if
applicable, specify the quantity and price of the items or materials purchased, grouped by type or category;


 


(B)         if
applicable, specify the cost of all contracted labor or other services involved in the Replacement or Repair for which such request
for disbursement is made;


 


(C)         if
applicable, include copies of invoices for all items or materials purchased and all contracted labor or services provided;


 




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(D)         include
evidence of payment of such Replacement or Repair satisfactory to Lender (unless Lender has agreed to issue joint checks in connection
with a particular Repair or Replacement as provided in this Loan Agreement); and


 


(E)         contain
a certification by Borrower that the Repair or Replacement has been completed lien free and in a good and workmanlike manner,
in accordance with any plans and specifications previously approved by Lender (if applicable) and in compliance with all applicable
laws, ordinances, rules, and regulations of any Governmental Authority having jurisdiction over the Mortgaged Property, and otherwise
in accordance with the provisions of this Loan Agreement.


 


(7)         Conditions
to Disbursement.


 


Lender may
require any or all of the following at the expense of Borrower as a condition to disbursement of funds from the Replacement Reserve
Account or the Repairs Escrow Account (provided that for any Borrower Requested Replacements, Borrower Requested Repairs, Additional
Lender Replacements, and Additional Lender Repairs, Lender shall have approved the use of the Reserve/Escrow Account Funds for
such replacements or repairs pursuant to the terms of Section 13.02(a)(9)):


 


(A)         an
inspection by Lender of the Mortgaged Property and the applicable Replacement or Repair;


 


(B)         an
inspection or certificate of completion by an appropriate independent qualified professional (such as an architect, engineer or
property inspector, depending on the nature of the Repair or Replacement) selected by Lender;


 


(C)         either:


 


(i)          a
search of title to the Mortgaged Property effective to the date of disbursement; or


 


(ii)         a
“date-down” endorsement to Lender’s Title Policy (or a new Lender’s Title Policy if a “date-down” is not available)
extending the effective date of such policy to the date of disbursement, and showing no Liens other than (1) Permitted Encumbrances,
(2) liens which Borrower is diligently contesting in good faith that have been bonded off to the satisfaction of Lender, or (3)
mechanics’ or materialmen’s liens which attach automatically under the laws of any Governmental Authority upon the commencement
of any work upon, or delivery of any materials to, the Mortgaged Property and for which Borrower is not delinquent in the payment
for any such work or materials; and


 






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(D)         an
acknowledgement of payment, waiver of claims, and release of lien for work performed and materials supplied from each contractor,
subcontractor or materialman in accordance with the requirements of applicable law and covering all work performed and materials
supplied (including equipment and fixtures) for the Mortgaged Property by that contractor, subcontractor, or materialman through
the date covered by the disbursement request (or, in the event that payment to such contractor, subcontractor, or materialman
is to be made by a joint check, the release of lien shall be effective through the date covered by the previous disbursement).


 


(8)         Joint
Checks for Periodic Disbursements.


 


Lender may,
upon Borrower’s written request, issue joint checks, payable to Borrower and the applicable supplier, materialman, mechanic, contractor,
subcontractor, or other similar party, if:


 


(A)         the
cost of the Replacement or Repair exceeds the Replacement Threshold or the Repair Threshold, as applicable, and the contractor
performing such Replacement or Repair requires periodic payments pursuant to the terms of the applicable written contract;


 


(B)         the
contract for such Repair or Replacement requires payment upon completion of the applicable portion of the work;


 


(C)         Borrower
makes the disbursement request after completion of the applicable portion of the work required to be completed under such contract;


 


(D)         the
materials for which the request for disbursement has been made are on site at the Mortgaged Property and are properly secured or
installed;


 


(E)         Lender
determines that the remaining funds in the Replacement Reserve Account designated for such Replacement, or in the Repairs Escrow
Account designated for such Repair, as applicable, are sufficient to pay such costs and the then-current estimated cost of completing
all remaining Required Replacements or Required Repairs (at the Maximum Repair Cost), as applicable, and any other Borrower Requested
Replacements, Borrower Requested Repairs, Additional Lender Replacements, or Additional Lender Repairs that have been previously
approved by Lender;


 


(F)         each
supplier, materialman, mechanic, contractor, subcontractor, or other similar party receiving payments shall have provided, if requested
in writing by Lender, a waiver of liens with respect to amounts which have been previously paid to them; and


 


(G)         all
other conditions for disbursement have been satisfied.


 




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(9)         Replacements
and Repairs Other than Required Replacements or Required Repairs.


 


(A)         Borrower
Requested Replacements and Borrower Requested Repairs.


 


Borrower
may submit a disbursement request from the Replacement Reserve Account or the Repairs Escrow Account to reimburse Borrower
for any Borrower Requested Replacement or Borrower Requested Repair. The disbursement request must be in writing and include
an explanation for such request. Lender shall make disbursements for Borrower Requested Replacements or Borrower Requested
Repairs if:


 


(i)          they
are of the type intended to be covered by the Replacement Reserve Account or the Repairs Escrow Account, as applicable;


 


(ii)         the
costs are commercially reasonable;


 


(iii)        the
amount of funds in the Replacement Reserve Account or Repairs Escrow Account, as applicable, is sufficient to pay such costs and
the then-current estimated cost of completing all remaining Required Replacements or Required Repairs (at the Maximum Repair Cost),
as applicable, and any other Borrower Requested Replacements, Borrower Requested Repairs, Additional Lender Replacements or Additional
Lender Repairs that have been previously approved by Lender; and


 


(iv)        all
conditions for disbursement from the Replacement Reserve Account or Repairs Escrow Account, as applicable, have been satisfied.


 


Nothing in this Loan Agreement
shall limit Lender’s right to require an additional deposit to the Replacement Reserve Account or an increase to the Monthly Replacement
Reserve Deposit in connection with any such Borrower Requested Replacements, or an additional deposit to the Repairs Escrow Account
for any such Borrower Requested Repairs.


 


(B)         Additional
Lender Replacements and Additional Lender Repairs.


 


Lender may
require, as set forth in Section 6.02(b), Section 6.03(c), or otherwise from time to time, upon written notice to Borrower, that
Borrower make Additional Lender Replacements or Additional Lender Repairs. Lender shall make disbursements from the Replacement
Reserve Account for Additional Lender Replacements or from the Repairs Escrow Account for Additional Lender Repairs, as applicable,
if:


 


(i)          the
costs are commercially reasonable;


 


(ii)         the
amount of funds in the Replacement Reserve Account or the Repairs Escrow Account, as applicable, is sufficient to pay such costs
and the then-current estimated cost of completing all remaining Required Replacements or Required Repairs (at the Maximum Repair
Cost), as applicable, and any other Borrower Requested Replacements, Borrower Requested Repairs, Additional Lender Replacements,
or Additional Lender Repairs that have been previously approved by Lender; and


 






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(iii)        all
conditions for disbursement from the Replacement Reserve Account or Repairs Escrow Account, as applicable, have been satisfied.


 


Nothing in this Loan Agreement
shall limit Lender’s right to require an additional deposit to the Replacement Reserve Account or an increase to the Monthly Replacement
Reserve Deposit for any such Additional Lender Replacements or an additional deposit to the Repairs Escrow Account for any such
Additional Lender Repair.


 


(10)        Excess Costs.


 


In the event
any Replacement or Repair exceeds the approved cost set forth on the Required Replacement Schedule for Replacements, or the Maximum
Repair Cost for Repairs, Borrower may submit a disbursement request to reimburse Borrower for such excess cost. The disbursement
request must be in writing and include an explanation for such request. Lender shall make disbursements from the Replacement Reserve
Account or the Repairs Escrow Account, as applicable, if:


 


(A)         the
excess cost is commercially reasonable;


 


(B)         the
amount of funds in the Replacement Reserve Account or the Repairs Escrow Account, as applicable, is sufficient to pay such costs
and the then-current estimated cost of completing all remaining Required Replacements or Required Repairs (at the Maximum Repair
Cost), as applicable, and any other Borrower Requested Replacements, Borrower Requested Repairs, Additional Lender Replacements,
or Additional Lender Repairs that have been previously approved by Lender; and


 


(C)         all
conditions for disbursement from the Replacement Reserve Account or the Repairs Escrow Account have been satisfied.


 


(11)        Final Disbursements.


 


Upon completion
of all Repairs in accordance with this Loan Agreement and so long as no Event of Default has occurred and is continuing, Lender
shall disburse to Borrower any amounts then remaining in the Repairs Escrow Account. Upon payment in full of the Indebtedness and
release by Lender of the lien of the Security Instrument, Lender shall disburse to Borrower any and all amounts then remaining
in the Replacement Reserve Account and the Repairs Escrow Account (if not previously released).


 




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(b)          Approvals
of Contracts; Assignment of Claims.


 


Lender retains the
right to approve all contracts or work orders with materialmen, mechanics, suppliers, subcontractors, contractors, or other parties
providing labor or materials in connection with the Replacements or Repairs. Notwithstanding Borrower’s assignment (in the Security
Instrument) of its rights and claims against all Persons supplying labor or materials in connection with the Replacement or Repairs,
Lender will not pursue any such right or claim unless an Event of Default has occurred and is continuing or as otherwise provided
in Section 14.03(c).


 


(c)          Delays
and Workmanship.


 


If any work for any
Replacement or Repair has not timely commenced, has not been timely performed in a workmanlike manner, or has not been timely completed
in a workmanlike manner, Lender may, without notice to Borrower:


 


(1)         withhold
disbursements from the Replacement Reserve Account or Repairs Escrow Account for such unsatisfactory Replacement or Repair, as
applicable;


 


(2)         proceed
under existing contracts or contract with third parties to make or complete such Replacement or Repair;


 


(3)         apply
the funds in the Replacement Reserve Account or Repairs Escrow Account toward the labor and materials necessary to make or complete
such Replacement or Repair, as applicable; or


 


(4)         exercise
any and all other remedies available to Lender under this Loan Agreement or any other Loan Document, including any remedies otherwise
available upon an Event of Default pursuant to the terms of Section 14.02.


 


To facilitate Lender’s completion or making
of such Replacements or Repairs, Lender shall have the right to enter onto the Mortgaged Property and perform any and all work
and labor necessary to make or complete the Replacements or Repairs and employ watchmen to protect the Mortgaged Property from
damage. All funds so expended by Lender shall be deemed to have been advanced to Borrower, shall be part of the Indebtedness and
shall be secured by the Security Instrument and this Loan Agreement.


 


(d)          Appointment
of Lender as Attorney-In-Fact.


 


Borrower hereby authorizes
and appoints Lender as attorney-in-fact pursuant to Section 14.03(c).


 


(e)          No
Lender Obligation.


 


Nothing in this Loan Agreement shall:


 


(1)         make
Lender responsible for making or completing the Replacements or Repairs;


 


(2)         require
Lender to expend funds, whether from the Replacement Reserve Account, the Repairs Escrow Account, or otherwise, to make or complete
any Replacement or Repair;


 




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(3)         obligate
Lender to proceed with the Replacements or Repairs; or


 


(4)         obligate
Lender to demand from Borrower additional sums to make or complete any Replacement or Repair.


 


(f)             No Lender Warranty.


 


Lender’s approval of
any plans for any Replacement or Repair, release of funds from the Replacement Reserve Account or Repairs Escrow Account, inspection
of the Mortgaged Property by Lender or its agents, representatives, or designees, or other acknowledgment of completion of any
Replacement or Repair in a manner satisfactory to Lender shall not be deemed an acknowledgment or warranty to any Person that the
Replacement or Repair has been completed in accordance with applicable building, zoning, or other codes, ordinances, statutes,
laws, regulations, or requirements of any Governmental Authority, such responsibility being at all times exclusively that of Borrower.


 


ARTICLE
14 - DEFAULTS/REMEDIES


 


Section 14.01         Events
of Default.


 


The occurrence of any
one or more of the following in this Section 14.01 shall constitute an Event of Default under this Loan Agreement.


 


(a)          Automatic
Events of Default.


 


Any of the following shall constitute an automatic
Event of Default:


 


(1)         any
failure by Borrower to pay or deposit when due any amount required by the Note, this Loan Agreement or any other Loan Document;


 


(2)         any
failure by Borrower to maintain the insurance coverage required by any Loan Document;


 


(3)         any
failure by Borrower to comply with the provisions of Section 4.02(d) relating to its single asset status;


 


(4)         if
any warranty, representation, certification, or statement of Borrower, Guarantor, or Key Principal in this Loan Agreement or any
of the other Loan Documents is false, inaccurate, or misleading in any material respect when made;


 


(5)         fraud,
gross negligence, willful misconduct, or material misrepresentation or material omission by or on behalf of Borrower, Guarantor,
or Key Principal or any of their officers, directors, trustees, partners, members, or managers in connection with:


 


(A)         the
application for, or creation of, the Indebtedness;


 


(B)         any
financial statement, rent roll, or other report or information provided to Lender during the term of the Mortgage Loan; or


 




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(C)         any
request for Lender’s consent to any proposed action, including a request for disbursement of Reserve/Escrow Account Funds or Collateral
Account Funds;


 


(6)         the
occurrence of any Transfer not permitted by the Loan Documents;


 


(7)         the
occurrence of a Bankruptcy Event;


 


(8)         the
commencement of a forfeiture action or other similar proceeding, whether civil or criminal, which, in Lender’s reasonable judgment,
could result in a forfeiture of the Mortgaged Property or otherwise materially impair the lien created by this Loan Agreement or
the Security Instrument or Lender’s interest in the Mortgaged Property;


 


(9)         if
Borrower, Guarantor, or Key Principal is a trust, or if Control of Borrower, Guarantor, or Key Principal is Transferred or if a
Restricted Ownership Interest in Borrower, Guarantor, or Key Principal would be Transferred due to the termination or revocation
of a trust, the termination or revocation of such trust, except as set forth in Section 11.03(d);


 


(10)        any
failure by Borrower to complete any Repair related to fire, life, or safety issues in accordance with the terms of this Loan Agreement
within the Completion Period (or such other date set forth on the Required Repair Schedule or otherwise required by Lender in writing
for such Repair); or


 


(11)        any
exercise by the holder of any other debt instrument secured by a mortgage, deed of trust, or deed to secure debt on the Mortgaged
Property of a right to declare all amounts due under that debt instrument immediately due and payable.


 


(b)          Events
of Default Subject to a Specified Cure Period.


 


Any of the following
shall constitute an Event of Default subject to the cure period set forth in the Loan Documents:


 


(1)         if
Key Principal or Guarantor is a natural person, the death of such individual, unless all requirements of Section 11.03(e) are met;


 


(2)         the
occurrence of a Guarantor Bankruptcy Event, unless requirements of Section 11.03(f) are met;


 


(3)         any
failure by Borrower, Key Principal, or Guarantor to comply with the provisions of Section 5.02(b) and Section 5.02(c); or


 


(4)         any
failure by Borrower to perform any obligation under this Loan Agreement or any Loan Document that is subject to a specified written
notice and cure period, which failure continues beyond such specified written notice and cure period as set forth herein or in
the applicable Loan Document.


 






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(c)          Events
of Default Subject to Extended Cure Period.


 


The following shall
constitute an Event of Default if the existence of such condition or event, or such failure to perform or default in performance
continues for a period of thirty (30) days after written notice by Lender to Borrower of the existence of such condition or event,
or of such failure to perform or default in performance, provided, however, such period may be extended for up to an additional
thirty (30) days if Borrower, in the discretion of Lender, is diligently pursuing a cure of such; provided, further, however,
no such written notice, grace period, or extension shall apply if, in Lender’s discretion, immediate exercise by Lender of a right
or remedy under this Loan Agreement or any Loan Document is required to avoid harm to Lender or impairment of the Mortgage Loan
(including the Loan Documents), the Mortgaged Property or any other security given for the Mortgage Loan:


 


(1)         any
failure by Borrower to perform any of its obligations under this Loan Agreement or any Loan Document (other than those specified
in Section 14.01(a) or Section 14.01(b) above) as and when required.


 


Section 14.02         Remedies.


 


(a)          Acceleration;
Foreclosure.


 


If an Event of Default
has occurred and is continuing, the entire unpaid principal balance of the Mortgage Loan, any Accrued Interest, interest accruing
at the Default Rate, the Prepayment Premium (if applicable), and all other Indebtedness, at the option of Lender, shall immediately
become due and payable, without any prior written notice to Borrower, unless applicable law requires otherwise (and in such case,
after any required written notice has been given). Lender may exercise this option to accelerate regardless of any prior forbearance.
In addition, Lender shall have all rights and remedies afforded to Lender hereunder and under the other Loan Documents, including,
foreclosure on and/or the power of sale of the Mortgaged Property, as provided in the Security Instrument, and any rights and remedies
available to Lender at law or in equity (subject to Borrower’s statutory rights of reinstatement, if any). Any proceeds of a Foreclosure
Event may be held and applied by Lender as additional collateral for the Indebtedness pursuant to this Loan Agreement. Notwithstanding
the foregoing, the occurrence of any Bankruptcy Event shall automatically accelerate the Mortgage Loan and all obligations and
Indebtedness shall be immediately due and payable without written notice or further action by Lender.


 


(b)          Loss
of Right to Disbursements from Collateral Accounts.


 


If an Event of Default
has occurred and is continuing, Borrower shall immediately lose all of its rights to receive disbursements from the Reserve/Escrow
Accounts and any Collateral Accounts. During the continuance of any such Event of Default, Lender may use the Reserve/Escrow Account
Funds and any Collateral Account Funds (or any portion thereof) for any purpose, including:


 


(1)         repayment
of the Indebtedness, including principal prepayments and the Prepayment Premium applicable to such full or partial prepayment,
as applicable (however, such application of funds shall not cure or be deemed to cure any Event of Default);


 


(2)         reimbursement
of Lender for all losses and expenses (including reasonable legal fees) suffered or incurred by Lender as a result of such Event
of Default;


 


(3)         completion
of the Replacement or Repair or for any other replacement or repair to the Mortgaged Property; and


 







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(4)         payment
of any amount expended in exercising (and the exercise of) all rights and remedies available to Lender at law or in equity or
under this Loan Agreement or under any of the other Loan Documents.


 


Nothing in this Loan Agreement shall obligate
Lender to apply all or any portion of the Reserve/Escrow Account Funds or Collateral Account Funds on account of any Event of Default
by Borrower or to repayment of the Indebtedness or in any specific order of priority.


 


(c)          Remedies
Cumulative.


 


Each right and remedy
provided in this Loan Agreement is distinct from all other rights or remedies under this Loan Agreement or any other Loan Document
or afforded by applicable law, and each shall be cumulative and may be exercised concurrently, independently, or successively,
in any order. Lender shall not be required to demonstrate any actual impairment of its security or any increased risk of additional
default by Borrower in order to exercise any of its remedies with respect to an Event of Default.


 


Section 14.03         Additional
Lender Rights; Forbearance.


 


(a)          No
Effect Upon Obligations.


 


Lender may, but shall
not be obligated to, agree with Borrower, from time to time, and without giving notice to, or obtaining the consent of, or having
any effect upon the obligations of, Guarantor, Key Principal, or other third party obligor, to take any of the following actions:


 


(1)         the
time for payment of the principal of or interest on the Indebtedness may be extended, or the Indebtedness may be renewed in whole
or in part;


 


(2)         the
rate of interest on or period of amortization of the Mortgage Loan or the amount of the Monthly Debt Service Payments payable under
the Loan Documents may be modified;


 


(3)         the
time for Borrower’s performance of or compliance with any covenant or agreement contained in any Loan Document, whether presently
existing or hereinafter entered into, may be extended or such performance or compliance may be waived;


 


(4)         any
or all payments due under this Loan Agreement or any other Loan Document may be reduced;


 


(5)         any
Loan Document may be modified or amended by Lender and Borrower in any respect, including an increase in the principal amount of
the Mortgage Loan;


 


(6)         any
amounts under this Loan Agreement or any other Loan Document may be released;


 


(7)         any
security for the Indebtedness may be modified, exchanged, released, surrendered, or otherwise dealt with, or additional security
may be pledged or mortgaged for the Indebtedness;


 







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(8)         the
payment of the Indebtedness or any security for the Indebtedness, or both, may be subordinated to the right to payment or the security,
or both, of any other present or future creditor of Borrower; or


 


(9)         any
other terms of the Loan Documents may be modified.


 


(b)          No
Waiver of Rights or Remedies.


 


Any waiver of an Event
of Default or forbearance by Lender in exercising any right or remedy under this Loan Agreement or any other Loan Document or otherwise
afforded by applicable law, shall not be a waiver of any other Event of Default or preclude the exercise or failure to exercise
of any other right or remedy. The acceptance by Lender of payment of all or any part of the Indebtedness after the due date of
such payment, or in an amount which is less than the required payment, shall not be a waiver of Lender’s right to require prompt
payment when due of all other payments on account of the Indebtedness or to exercise any remedies for any failure to make prompt
payment. Enforcement by Lender of any security for the Indebtedness shall not constitute an election by Lender of remedies so as
to preclude the exercise or failure to exercise of any other right available to Lender. Lender’s receipt of any insurance proceeds
or amounts in connection with a Condemnation Action shall not operate to cure or waive any Event of Default.


 


(c)          Appointment
of Lender as Attorney-In-Fact.


 


Borrower hereby irrevocably
makes, constitutes, and appoints Lender (and any officer of Lender or any Person designated by Lender for that purpose) as Borrower’s
true and lawful proxy and attorney-in-fact (and agent-in-fact) in Borrower’s name, place, and stead, with full power of substitution,
to:


 


(1)         use
any of the funds in the Replacement Reserve Account or Repairs Escrow Account for the purpose of making or completing the Replacements
or Repairs;


 


(2)         make
such additions, changes, and corrections to the Replacements or Repairs as shall be necessary or desirable to complete the Replacements
or Repairs;


 


(3)         employ
such contractors, subcontractors, agents, architects, and inspectors as shall be required for such purposes;


 


(4)         pay,
settle, or compromise all bills and claims for materials and work performed in connection with the Replacements or Repairs, or
as may be necessary or desirable for the completion of the Replacements or Repairs, or for clearance of title;


 


(5)         adjust
and compromise any claims under any and all policies of insurance required pursuant to this Loan Agreement and any other Loan Document,
subject only to Borrower’s rights under this Loan Agreement;


 


(6)         appear
in and prosecute any action arising from any insurance policies;


 


(7)         collect
and receive the proceeds of insurance, and to deduct from such proceeds Lender’s expenses incurred in the collection of such proceeds;


 


(8)         commence,
appear in, and prosecute, in Lender’s or Borrower’s name, any Condemnation Action;


 




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(9)         settle
or compromise any claim in connection with any Condemnation Action;


 


(10)        execute
all applications and certificates in the name of Borrower which may be required by any of the contract documents;


 


(11)        prosecute
and defend all actions or proceedings in connection with the Mortgaged Property or the rehabilitation and repair of the Mortgaged
Property;


 


(12)        take
such actions as are permitted in this Loan Agreement and any other Loan Documents;


 


(13)        execute
such financing statements and other documents and to do such other acts as Lender may require to perfect and preserve Lender’s
security interest in, and to enforce such interests in, the collateral; and


 


(14)        carry
out any remedy provided for in this Loan Agreement and any other Loan Documents, including endorsing Borrower’s name to checks,
drafts, instruments and other items of payment and proceeds of the collateral, executing change of address forms with the postmaster
of the United States Post Office serving the address of Borrower, changing the address of Borrower to that of Lender, opening all
envelopes addressed to Borrower, and applying any payments contained therein to the Indebtedness.


 


Borrower hereby acknowledges
that the constitution and appointment of such proxy and attorney-in-fact are coupled with an interest and are irrevocable and shall
not be affected by the disability or incompetence of Borrower. Borrower specifically acknowledges and agrees that this power of
attorney granted to Lender may be assigned by Lender to Lender’s successors or assigns as holder of the Note (and the other Loan
Documents). The foregoing powers conferred on Lender under this Section 14.03(c) shall not impose any duty upon Lender to exercise
any such powers and shall not require Lender to incur any expense or take any action. Borrower hereby ratifies and confirms all
that such attorney-in-fact may do or cause to be done by virtue of any provision of this Loan Agreement and any other Loan Documents.


 


Notwithstanding the foregoing
provisions, Lender shall not exercise its rights as set forth in this Section 14.03(c) unless: (A) an Event of Default has occurred
and is continuing, or (B) Lender determines, in its discretion, that exigent circumstances exist or that such exercise is necessary
or prudent in order to protect and preserve the Mortgaged Property, or Lender’s lien priority and security interest in the Mortgaged
Property.


 


(d)          Borrower
Waivers.


 


If more than one Person
signs this Loan Agreement as Borrower, each Borrower, with respect to any other Borrower, hereby agrees that Lender, in its discretion,
may:


 


(1)         bring
suit against Borrower, or any one or more of Borrower, jointly and severally, or against any one or more of them;


 


(2)         compromise
or settle with any one or more of the persons constituting Borrower, for such consideration as Lender may deem proper;


 


(3)         release
one or more of the persons constituting Borrower, from liability; or


 




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(4)         otherwise
deal with Borrower, or any one or more of them, in any manner, and no such action shall impair the rights of Lender to collect
from any Borrower the full amount of the Indebtedness.


 


Section 14.04         Waiver
of Marshaling.


 


Notwithstanding the
existence of any other security interests in the Mortgaged Property held by Lender or by any other party, Lender shall have the
right to determine the order in which any or all of the Mortgaged Property shall be subjected to the remedies provided in this
Loan Agreement, any other Loan Document or applicable law. Lender shall have the right to determine the order in which all or any
part of the Indebtedness is satisfied from the proceeds realized upon the exercise of such remedies. Borrower and any party who
now or in the future acquires a security interest in the Mortgaged Property and who has actual or constructive notice of this Loan
Agreement waives any and all right to require the marshaling of assets or to require that any of the Mortgaged Property be sold
in the inverse order of alienation or that any of the Mortgaged Property be sold in parcels or as an entirety in connection with
the exercise of any of the remedies permitted by applicable law or provided in this Loan Agreement or any other Loan Documents.


 


Lender shall account
for any moneys received by Lender in respect of any foreclosure on or disposition of collateral hereunder and under the other Loan
Documents provided that Lender shall not have any duty as to any collateral, and Lender shall be accountable only for amounts that
it actually receives as a result of the exercise of such powers. NONE OF LENDER OR ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES,
AGENTS, OR REPRESENTATIVES SHALL BE RESPONSIBLE TO BORROWER (A) FOR ANY ACT OR FAILURE TO ACT UNDER ANY POWER OF ATTORNEY OR OTHERWISE,
EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED PURSUANT
TO A FINAL, NON-APPEALABLE COURT ORDER BY A COURT OF COMPETENT JURISDICTION, NOR (B) FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL
DAMAGES.


 


ARTICLE 15
- MISCELLANEOUS


 


Section 15.01         Governing
Law; Consent to Jurisdiction and Venue.


 


(a)          Governing
Law.


 


This Loan Agreement
and any other Loan Document which does not itself expressly identify the law that is to apply to it, shall be governed by the laws
of the Property Jurisdiction without regard to the application of choice of law principles.


 


(b)          Venue.


 


Any controversy arising
under or in relation to this Loan Agreement or any other Loan Document shall be litigated exclusively in the Property Jurisdiction
without regard to conflicts of laws principles. The state and federal courts and authorities with jurisdiction in the Property
Jurisdiction shall have exclusive jurisdiction over all controversies which shall arise under or in relation to this Loan Agreement
or any other Loan Document. Borrower irrevocably consents to service, jurisdiction, and venue of such courts for any such litigation
and waives any other venue to which it might be entitled by virtue of domicile, habitual residence, or otherwise.


 




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Section 15.02         Notice.


 


(a)          Process
of Serving Notice.


 


Except as otherwise
set forth herein or in any other Loan Document, all notices under this Loan Agreement and any other Loan Document shall be:


 


(1)         in
writing and shall be:


 


(A)         delivered,
in person;


 


(B)         mailed,
postage prepaid, either by registered or certified delivery, return receipt requested;


 


(C)         sent
by overnight courier; or


 


(D)         sent
by electronic mail with originals to follow by overnight courier;


 


(2)         addressed
to the intended recipient at Borrower’s Notice Address and Lender’s Notice Address, as applicable; and


 


(3)         deemed
givers on the earlier to occur of:


 


(A)         the
date when the notice is received by the addressee; or


 


(B)         if
the recipient refuses or rejects delivery, the date on which the notice is so refused or rejected, as conclusively established
by the records of the United States Postal Service or such express courier service.


 


(b)          Change
of Address.


 


Any party to this Loan
Agreement may change the address to which notices intended for it are to be directed by means of notice given to the other parties
identified on the Summary of Loan Terms in accordance with this Section 15.02.


 


(c)          Default
Method of Notice.


 


Any required notice
under this Loan Agreement or any other Loan Document which does not specify how notices are to be given shall be given in accordance
with this Section 15.02.


 


(d)          Receipt
of Notices.


 


Neither Borrower nor
Lender shall refuse or reject delivery of any notice given in accordance with this Loan Agreement. Each party is required to acknowledge,
in writing, the receipt of any notice upon request by the other party.


 




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Section 15.03         Successors
and Assigns Bound; Sale of Mortgage Loan.


 


(a)          Binding
Agreement.


 


This Loan Agreement
shall bind, and the rights granted by this Loan Agreement shall inure to, the successors and assigns of Lender and the permitted
successors and assigns of Borrower. However, a Transfer not permitted by this Loan Agreement shall be an Event of Default and shall
be void ab initio.


 


(b)          Sale
of Mortgage Loan; Change of Servicer.


 


Nothing in this Loan
Agreement shall limit Lender’s (including its successors and assigns) right to sell or transfer the Mortgage Loan or any interest
in the Mortgage Loan. The Mortgage Loan or a partial interest in the Mortgage Loan (together with this Loan Agreement and the other
Loan Documents) may be sold one or more times without prior written notice to Borrower. A sale may result in a change of the Loan
Servicer.


 


Section 15.04         Counterparts.


 


This Loan Agreement
may be executed in any number of counterparts with the same effect as if the parties hereto had signed the same document and all
such counterparts shall be construed together and shall constitute one instrument.


 


Section 15.05         Joint
and Several (or Solidary) Liability.


 


If more than one Person
signs this Loan Agreement as Borrower, the obligations of such Persons shall be joint and several (solidary instead for purposes
of Louisiana law).


 


Section 15.06         Relationship
of Parties; No Third Party Beneficiary.


 


(a)          Solely
Creditor and Debtor.


 


The relationship between
Lender and Borrower shall be solely that of creditor and debtor, respectively, and nothing contained in this Loan Agreement shall
create any other relationship between Lender and Borrower. Nothing contained in this Loan Agreement shall constitute Lender as
a joint venturer, partner, or agent of Borrower, or render Lender liable for any debts, obligations, acts, omissions, representations,
or contracts of Borrower.


 


(b)          No
Third Party Beneficiaries.


 


No creditor of any
party to this Loan Agreement and no other Person shall be a third party beneficiary of this Loan Agreement or any other Loan Document
or any account created or contemplated under this Loan Agreement or any other Loan Document. Nothing contained in this Loan Agreement
shall be deemed or construed to create an obligation on the part of Lender to any third party nor shall any third party have a
right to enforce against Lender any right that Borrower may have under this Loan Agreement. Without limiting the foregoing:


 


(1)         any
Servicing Arrangement between Lender and any Loan Servicer shall constitute a contractual obligation of such Loan Servicer that
is independent of the obligation of Borrower for the payment of the Indebtedness;


 




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(2)         Borrower
shall not be a third party beneficiary of any Servicing Arrangement; and


 


(3)         no
payment by the Loan Servicer under any Servicing Arrangement will reduce the amount of the Indebtedness.


 


Section 15.07        Severability;
Entire Agreement; Amendments.


 


The invalidity
or unenforceability of any provision of this Loan Agreement or any other Loan Document shall not affect the validity or enforceability
of any other provision of this Loan Agreement or of any other Loan Document, all of which shall remain in full force and effect,
including the Guaranty. This Loan Agreement contains the complete and entire agreement among the parties as to the matters covered,
rights granted, and the obligations assumed in this Loan Agreement. This Loan Agreement may not be amended or modified except by
written agreement signed by the parties hereto.


 


Section 15.08         Construction.


 


(a)          The
captions and headings of the sections of this Loan Agreement and the Loan Documents are for convenience only and shall be disregarded
in construing this Loan Agreement and the Loan Documents.


 


(b)          Any
reference in this Loan Agreement to an “Exhibit” or “Schedule” or a “Section” or an “Article”
shall, unless otherwise explicitly provided, be construed as referring, respectively, to an Exhibit or Schedule attached to this
Loan Agreement or to a Section or Article of this Loan Agreement.


 


(c)          Any
reference in this Loan Agreement to a statute or regulation shall be construed as referring to that statute or regulation as amended
from time to time.


 


(d)          Use
of the singular in this Loan Agreement includes the plural and use of the plural includes the singular.


 


(e)          As
used in this Loan Agreement, the term “including” means “including, but not limited to” or “including,
without limitation,” and is for example only and not a limitation.


 


(f)          Whenever
Borrower’s knowledge is implicated in this Loan Agreement or the phrase “to Borrower’s knowledge” or a similar phrase
is used in this Loan Agreement, Borrower’s knowledge or such phrase(s) shall be interpreted to mean to the best of Borrower’s knowledge
after reasonable and diligent inquiry and investigation.


 


(g)          Unless
otherwise provided in this Loan Agreement, if Lender’s approval, designation, determination, selection, estimate, action, or decision
is required, permitted, or contemplated hereunder, such approval, designation, determination, selection, estimate, action, or decision
shall be made in Lender’s sole and absolute discretion.


 


(h)          All
references in this Loan Agreement to a separate instrument or agreement shall include such instrument or agreement as the same
may be amended or supplemented from time to time pursuant to the applicable provisions thereof.


 


(i)          “Lender
may” shall mean at Lender’s discretion, but shall not be an obligation.


 




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If the Mortgage Loan
proceeds are disbursed on a date that is later than the Effective Date, as described in Section 2.02(a)(1), the representations
and warranties in the Loan Documents with respect to the ownership and operation of the Mortgaged Property shall be deemed to be
made as of the disbursement date.


 


Section 15.09         Mortgage
Loan Servicing.


 


All actions regarding
the servicing of the Mortgage Loan, including the collection of payments, the giving and receipt of notice, inspections of the
Mortgaged Property, inspections of books and records, and the granting of consents and approvals, may be taken by the Loan Servicer
unless Borrower receives notice to the contrary. If Borrower receives conflicting notices regarding the identity of the Loan Servicer
or any other subject, any such written notice from Lender shall govern. The Loan Servicer may change from time to time (whether
related or unrelated to a sale of the Mortgage Loan). If there is a change of the Loan Servicer, Borrower will be given written
notice of the change.


 


Section 15.10         Disclosure
of Information.


 


Lender may furnish
information regarding Borrower, Key Principal, or Guarantor, or the Mortgaged Property to third parties with an existing or prospective
interest in the servicing, enforcement, evaluation, performance, purchase, or securitization of the Mortgage Loan, including trustees,
master servicers, special servicers, rating agencies, and organizations maintaining databases on the underwriting and performance
of multifamily mortgage loans. Borrower irrevocably waives any and all rights it may have under applicable law to prohibit such
disclosure, including any right of privacy.


 


Section 15.11         Waiver;
Conflict.


 


No specific waiver
of any of the terms of this Loan Agreement shall be considered as a general waiver. If any provision of this Loan Agreement is
in conflict with any provision of any other Loan Document, the provision contained in this Loan Agreement shall control.


 


Section 15.12         No
Reliance.


 


Borrower acknowledges, represents, and warrants that:


 


(a)          it
understands the nature and structure of the transactions contemplated by this Loan Agreement and the other Loan Documents;


 


(b)          it
is familiar with the provisions of all of the documents and instruments relating to such transactions;


 


(c)          it
understands the risks inherent in such transactions, including the risk of loss of all or any part of the Mortgaged Property;


 


(d)          it
has had the opportunity to consult counsel; and


 


(e)          it
has not relied on Lender for any guidance or expertise in analyzing the financial or other consequences of the transactions contemplated
by this Loan Agreement or any other Loan Document or otherwise relied on Lender in any manner in connection with interpreting,
entering into, or otherwise in connection with this Loan Agreement, any other Loan Document, or any of the matters contemplated
hereby or thereby.


 




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Section 15.13        Subrogation.


 


If, and to the extent
that, the proceeds of the Mortgage Loan are used to pay, satisfy, or discharge any obligation of Borrower for the payment of money
that is secured by a pre-existing mortgage, deed of trust, or other lien encumbering the Mortgaged Property, such Mortgage Loan
proceeds shall be deemed to have been advanced by Lender at Borrower’s request, and Lender shall automatically, and without further
action on its part, be subrogated to the rights, including lien priority, of the owner or holder of the obligation secured by such
prior lien, whether or not such prior lien is released.


 


Section 15.14        Counting
of Days.


 


Except where otherwise
specifically provided, any reference in this Loan Agreement to a period of “days” means calendar days, not Business Days.
If the date on which Borrower is required to perform an obligation under this Loan Agreement is not a Business Day, Borrower shall
be required to perform such obligation by the Business Day immediately preceding such date; provided, however, in respect
of any Payment Date, or if the Maturity Date is other than a Business Day, Borrower shall be obligated to make such payment by
the Business Day immediately following such date.


 


Section 15.15       Revival
and Reinstatement of Indebtedness.


 


If the payment of all
or any part of the Indebtedness by Borrower, Guarantor, or any other Person, or the transfer to Lender of any collateral or other
property should for any reason’ subsequently be declared to be void or voidable under any state or federal law relating to creditors’
rights, including provisions of the Insolvency Laws relating to a Voidable Transfer, and if Lender is required to repay or restore,
in whole or in part, any such Voidable Transfer, or elects to do so upon the advice of its counsel, then the amount of such Voidable
Transfer or the amount of such Voidable Transfer that Lender is required or elects to repay or restore, including all reasonable
costs, expenses, and attorneys’ fees incurred by Lender in connection therewith, and the Indebtedness shall be automatically revived,
reinstated, and restored by such amount and shall exist as though such Voidable Transfer had never been made.


 


Section 15.16        Time
is of the Essence.


 


Borrower agrees that,
with respect to each and every obligation and covenant contained in this Loan Agreement and the other Loan Documents, time is of
the essence.


 


Section 15.17        Final
Agreement.


 


THIS LOAN AGREEMENT
ALONG WITH ALL OF THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER
HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS. THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES. All prior or contemporaneous agreements, understandings, representations, and statements,
oral or written, are merged into this Loan Agreement and the other Loan Documents. This Loan Agreement, the other Loan Documents,
and any of their provisions may not be waived, modified, amended, discharged, or terminated except by an agreement in writing signed
by the party against which the enforcement of the waiver, modification, amendment, discharge, or termination is sought, and then
only to the extent set forth in that agreement.


 







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Section 15.18        WAIVER OF TRIAL BY JURY.


 


TO THE MAXIMUM EXTENT
PERMITTED BY APPLICABLE LAW, EACH OF BORROWER AND LENDER (a) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO
ANY ISSUE ARISING OUT OF THIS LOAN AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER AND
LENDER, THAT IS TRIABLE OF RIGHT BY A JURY, AND (b) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT
THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY
AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.


 


IN WITNESS WHEREOF,
Borrower and Lender have signed and delivered this Loan Agreement under seal (where applicable) or have caused this Loan Agreement
to be signed and delivered under seal (where applicable) by their duly authorized representatives. Where applicable law so provides,
Borrower and Lender intend that this Loan Agreement shall be deemed to be signed and delivered as a sealed instrument.


 


[Remainder of Page Intentionally Blank]


 






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	 	BORROWER:
	 	 
	 	BR CWS CROWN RIDGE OWNER, LLC, a 
	 	Delaware limited liability company


 


	 	By:	BR CWS 2017 Portfolio JV, LLC, a Delaware 
	 	 	limited liability company, its sole member
	 	 	By: BR CWS Portfolio Member, LLC, a 
	 	 	Delaware limited iability company, its 
	 	 	manager


 


	 	By:	BR CWS Portfolio Member, LLC, a
	 	 	Delaware limited liability company, its 
	 	 	manager


 


	 	By:	/s/Jordan B Ruddy
	 	 	Jordan B Ruddy 
	 	 	Authorized Signatory


 






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	 	FANNIE MAE:
	 	 	 
	 	By:	Wells Fargo Bank, National Association, a national banking association, its attorney-in-fact


 


	 	By:	/s/ Christian Adrian
	 	 	Christian Adrian 
	 	 	Managing Director


 




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SCHEDULE 1


TO MULTIFAMILY LOAN AND SECURITY AGREEMENT


 


Definitions Schedule


(Interest Rate Type — Structured
ARM (1 and 3 Month LIBOR))


 


Capitalized terms used
in the Loan Agreement have the meanings given to such terms in this Definitions Schedule.


 


“Accrued Interest” means
unpaid interest, if any, on the Mortgage Loan that has not been added to the unpaid principal balance of the Mortgage Loan pursuant
to Section 2.02(b) (Capitalization of Accrued But Unpaid Interest) of the Loan Agreement.


 


“Additional Lender Repairs”
means repairs of the type listed on the Required Repair Schedule but not otherwise identified thereon that are determined advisable
by Lender to keep the Mortgaged Property in good order and repair (ordinary wear and tear excepted) and in good marketable condition
or to prevent deterioration of the Mortgaged Property.


 


“Additional Lender Replacements”
means replacements of the type listed on the Required Replacement Schedule but not otherwise identified thereon that are determined
advisable by Lender to keep the Mortgaged Property in good order and repair (ordinary wear and tear excepted) and in good marketable
condition or to prevent deterioration of the Mortgaged Property.


 


“Adjustable Rate” has the meaning set forth
in the Summary of Loan Terms.


 


“Affiliate” of any Person
means any other Person which, directly or indirectly, is in Control of, is under the Control of, or is under Control with, such
Person.


 


“Affiliate Transfer” shall
have the meaning set forth in Section 11.03(h)(1) of the Loan Agreement.


 


“Amortization Period” has
the meaning set forth in the Summary of Loan Terms. “Amortization Type” has the meaning set forth in the Summary
of Loan Terms.


 


“Bank Secrecy Act” means
the Bank Secrecy Act of 1970, as amended (e.g., 31 U.S.C. Sections 5311-5330).


 


“Bankruptcy Event” means any one or more of
the following:


 


(a)          the
commencement, filing or continuation of a voluntary case or proceeding under one or more of the Insolvency Laws by Borrower;


 


(b)          the
acknowledgment in writing by Borrower (other than to Lender in connection with a workout) that it is unable to pay its debts generally
as they mature;


 


(c)          the
making of a general assignment for the benefit of creditors by Borrower;


 


(d)          the
commencement, filing or continuation of an involuntary case or proceeding under one or more Insolvency Laws against Borrower; or


 




    
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(e)          the
appointment of a receiver(other than a receiver appointed at the direction or request of Lender under the terms of the Loan Documents),
liquidator, custodian, sequestrator, trustee or other similar officer who exercises control over Borrower or any substantial part
of the assets of Borrower;


 


provided, however, that any proceeding or case under (d) or (e) above shall not be a Bankruptcy Event
until the ninetieth (90th) day after filing (if not earlier dismissed) so long as such proceeding or case occurred without the
consent, encouragement or active participation of (1) Borrower, Guarantor, or Key Principal, (2) any Person Controlling Borrower,
Guarantor, or Key Principal, or (3) any Person Controlled by or under common Control with Borrower, Guarantor, or Key Principal
(in which event such case or proceeding shall be a Bankruptcy Event immediately).


 


“Borrower” means, individually
(and jointly and severally (solidarily instead for purposes of Louisiana law) if more than one), the entity (or entities) identified
as “Borrower” in the first paragraph of the Loan Agreement.


 


“Borrower Affiliate” means, as to Borrower, Guarantor
or Key Principal:


 


(a)          any
Person that owns any direct ownership interest in Borrower, Guarantor or Key Principal; except that if Guarantor or Key Principal
is a Publicly-Held Corporation or a Publicly-Held Trust, then only the shareholders or beneficial owners of such Publicly-Held
Corporation or a Publicly-Held Trust with the power to vote twenty percent (20%) or more of the ownership interests in Guarantor
or Key Principal;


 


(b)          any
Person that indirectly owns, with the power to vote, twenty percent (20%) or more of the ownership interests in Borrower, Guarantor
or Key Principal;


 


(c)          any
Person Controlled by, under common Control with, or which Controls, Borrower, Guarantor or Key Principal;


 


(d)          any
entity in which Borrower, Guarantor or Key Principal directly or indirectly owns, with the power to vote, twenty percent (20%)
or more of the ownership interests in such entity; or


 


(e)          any
other individual that is related (to the third degree of consanguinity) by blood or marriage to Borrower, Guarantor or Key Principal.


 


“Borrower Requested Repairs”
means repairs not listed on the Required Repair Schedule requested by Borrower to be reimbursed from the Repairs Escrow Account
and determined advisable by Lender to keep the Mortgaged Property in good order and repair and in a good marketable condition or
to prevent deterioration of the Mortgaged Property.


 


“Borrower Requested Replacements”
means replacements not listed on the Required Replacement Schedule requested by Borrower to be reimbursed from the Replacement
Reserve Account and determined advisable by Lender to keep the Mortgaged Property in good order and repair and in a good marketable
condition or to prevent deterioration of the Mortgaged Property.


 


“Borrower’s General Business Address”
has the meaning set forth in the Summary of Loan Terms.


 


“Borrower’s Notice Address” has the meaning set forth
in the Summary of Loan Terms.


 




    
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“BR Member” shall have the meaning set forth
in Section 11.03(h)(3) of the Loan Agreement.


 


“Business Day” means any
day other than (a) a Saturday, (b) a Sunday, (c) a day on which Lender is not open for business, or (d) a day on which the Federal
Reserve Bank of New York is not open for business.


 


“Collateral Account Funds”
means, collectively, the funds on deposit in any or all of the Collateral Accounts, including the Reserve/Escrow Account Funds.


 


“Collateral Accounts” means
any account designated as such by Lender pursuant to a Collateral Agreement or as established pursuant to this Loan Agreement,
including the Reserve/Escrow Account.


 


“Collateral Agreement” means
any separate agreement between Borrower and Lender for the establishment of any other fund, reserve or account.


 


“Completion Period” has
the meaning set forth in the Summary of Loan Terms. “Condemnation Action” has the meaning set forth in the Security
Instrument.


 


“Control” (including with
correlative meanings, such as “Controlling,” “Controlled by” and “under common Control with”) means,
as applied to any entity, the ability, directly or indirectly, whether by ownership or shares or other equity interests, by contract
or otherwise, (a) to elect a majority of the directors of a corporation, (b) to make management decisions on behalf of, or independently
to select the managing partner of a partnership or the managing member or manager (if non-member managed) of a limited liability
company, (c) to remove, appoint or substitute the trustee of a trust, or (d) independently to remove and then select a majority
of those individuals exercising managerial authority over an entity.


 


“Conversion” means the
conversion of the Mortgage Loan from an adjustable rate to a fixed rate and, if applicable, the extension of the Maturity Date
of the Mortgage Loan to the New Maturity Date.


 


“Conversion Amendment” means
Lender’s then-current form of Amendment to Multifamily Loan and Security Agreement to be executed by Borrower and Lender to amend
or restate all or any part of this Loan Agreement (including any Schedules, Exhibits or other attachments) in connection with,
and reflecting the terms of, a Conversion of the Mortgage Loan.


 


“Conversion Closing Date”
means, after Borrower exercises the Conversion Option, the date designated by Lender for the closing of the Conversion which
date (a) is a Business Day, (b) is within the Conversion Period, and (c) is not more than ten (10) days after the Conversion Exercise
Date.


 


“Conversion Effective Date”
means, if the Conversion Exercise Date occurs on a Payment Date, the first (1st) day of the calendar month following the Conversion
Exercise Date, or, if the Conversion Exercise Date occurs on any other day other than a Payment Date, the first (1st) day of the
second (2nd) calendar month following the Conversion Exercise Date, but in no event shall the Conversion Effective Date be after
the last day of the Conversion Period.


 


“Conversion Exercise Date”
means the date that Borrower accepts the rate quote provided by Lender in connection with Borrower’s Rate Lock Request.


 







    
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“Conversion Option” means
Borrower’s one-time option to effect the Conversion pursuant to the terms of the Loan Agreement.


 


“Conversion Period” means
the period commencing on the first (1st) day of the second (2nd) Loan Year and ending on the first (1st) day of the third (3rd)
month prior to the Maturity Date of the Mortgage Loan.


 


“Conversion Review Fee” has the meaning set
forth in the Summary of Loan Terms.


 


“Credit Score” means a
numerical value or a categorization derived from a statistical tool or modeling system used to measure credit risk and predict
the likelihood of certain credit behaviors, including default.


 


“Current Index” has the meaning set forth in
the Summary of Loan Terms.


 


“Debt Service Amounts” means
the Monthly Debt Service Payments and all other amounts payable under the Loan Agreement, the Note, the Security Instrument or
any other Loan Document.


 


“Debt Service Coverage Ratio”
means the ratio of (a) the Net Operating Income of the Mortgaged Property, to (b) the underwritten debt service for the Mortgage
Loan at the proposed Fixed Rate for the trailing twelve (12) month period from the date of the most recently received quarterly
financial statements prepared by Borrower for the Mortgaged Property, provided that (1) the interest rate used in determining such
ratio shall be the greater of (A) the Fixed Rate, or (B) the Underwriting Interest Rate (if any), and (2) an Amortization Period
of three hundred sixty (360) months shall be used in determining such ratio.


 


“Default Rate” means an interest rate equal
to the lesser of:


 


(a)          the
sum of the Interest Rate plus four (4) percentage points; or


 


(b)          the
maximum interest rate which may be collected from Borrower under applicable law.


 


“Definitions Schedule” means this Schedule
1 (Definitions Schedule) to the Loan Agreement.


 


“Economic Sanctions” means any economic or
financial sanction administered or enforced by the United States Government (including, without limitation, those administered
by OFAC at http://www.treasury.gov/about/organizational-structure/offices/Pages/Office-of-Foreign-Assets-Control.aspx),
the U.S. Department of Commerce, or the U.S. Department of State.


 


“Effective Date” has the meaning set forth
in the Summary of Loan Terms.


 


“Employee Benefit Plan” means
a plan described in Section 3(3) of ERISA, regardless of whether the plan is subject to ERISA.


 


“Enforcement Costs” has the meaning set forth
in the Security Instrument.


 


“Environmental Indemnity Agreement”
means that certain Environmental Indemnity Agreement dated as of the Effective Date made by Original Borrower to and for the
benefit of Lender, as the same may be amended, restated, replaced, supplemented, or otherwise modified from time to time.


 







    
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“Environmental Inspections”
has the meaning set forth in the Environmental Indemnity Agreement.


 


“Environmental Laws” has the meaning set forth
in the Environmental Indemnity Agreement. “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended.


 


“ERISA Affiliate” shall
mean, with respect to Borrower, any entity that, together with Borrower, would be treated as a single employer under Section 414(b)
or (c) of the Internal Revenue Code, or Section 4001(a)(14) of ERISA, or the regulations thereunder.


 


“ERISA Plan” means any
employee pension benefit plan within the meaning of Section 3(2) of ERISA (or related trust) that is subject to the requirements
of Title IV of ERISA, Sections 430 or 431 of the Internal Revenue Code, or Sections 302, 303, or 304 of ERISA, which is maintained
or contributed to by Borrower or its ERISA Affiliates.


 


“Event of Default” means
the occurrence of any event listed in Section 14.01 (Events of Default) of the Loan Agreement.


 


“Exceptions to Representations
and Warranties Schedule” means that certain Schedule 7 (Exceptions to Representations and Warranties Schedule)
to the Loan Agreement.


 


“First Payment Date” has the meaning set forth
in the Summary of Loan Terms.


 


“First Principal and Interest Payment
Date” has the meaning set forth in the Summary of Loan Terms, if applicable.


 


“Fixed Monthly Principal Component”
has the meaning set forth in the Summary of Loan Terms.


 


“Fixed Rate” means an
interest rate per annum equal to the sum of the Investor Yield, the Servicing Fee and the Guaranty Fee.


 


“Fixed Rate Amortization Factor” has the meaning
set forth in the Summary of Loan Terms.


 


“Fixed Rate Option” means,
in connection with a Conversion, Borrower’s selection of one (1) of the following fixed rate options for the Mortgage Loan, which
shall be effective from and after the Conversion Effective Date:


 


(a)          seven
(7) year term with a five (5) year yield maintenance period;


 


(b)          seven
(7) year term with a six and one-half (6.5) year yield maintenance period;


 


(c)          ten
(10) year term with a seven (7) year yield maintenance period; or


 


(d)          ten
(10) year term with a nine and one-half (9.5) year yield maintenance period.


 


“Fixtures” has the meaning set forth
in the Security Instrument.


 


“Force Majeure” shall
mean acts of God, acts of war, civil disturbance, governmental action (including the revocation or refusal to grant licenses or
permits, where such revocation or refusal is not due to the fault of Borrower), strikes, lockouts, fire, unavoidable casualties
or any other causes beyond the reasonable control of Borrower (other than lack of financing), and of which Borrower shall have
notified Lender in writing within ten (10) days after its occurrence.


 






    
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 Security Agreement - Definitions Schedule	 	 
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“Foreclosure Event” means:


 


(a)          foreclosure
under the Security Instrument;


 


(b)          any
other exercise by Lender of rights and remedies (whether under the Security Instrument or under applicable law, including Insolvency
Laws) as holder of the Mortgage Loan and/or the Security Instrument, as a result of which Lender (or its designee or nominee) or
a third party purchaser becomes owner of the Mortgaged Property;


 


(c)          delivery
by Borrower to Lender (or its designee or nominee) of a deed or other conveyance of Borrower’s interest in the Mortgaged Property
in lieu of any of the foregoing; or


 


(d)          in
Louisiana, any dation en paiement.


 


“Good Faith Deposit” means a
fee in an amount equal to two percent (2%) of the unpaid principal balance of the Mortgage Loan immediately prior to the Initial
Fixed Rate Payment Date.


 


“Goods” has the meaning set forth in the Security
Instrument.


 


“Governmental Authority” means
any court, board, commission, department or body of any municipal, county, state or federal governmental unit, or any subdivision
of any of them, that has or acquires jurisdiction over Borrower or the Mortgaged Property or the use, operation or improvement
of the Mortgaged Property.


 


“Guarantor” means, individually
and collectively, any guarantor of the Indebtedness or any other obligation of Borrower under any Loan Document.


 


“Guarantor Bankruptcy Event” means any one or more
of the following:


 


(a)          the
commencement, filing or continuation of a voluntary case or proceeding under one or more of the Insolvency Laws by Guarantor;


 


(b)          the
acknowledgment in writing by Guarantor (other than to Lender in connection with a workout) that it is unable to pay its debts generally
as they mature;


 


(c)          the
making of a general assignment for the benefit of creditors by Guarantor;


 


(d)          the
commencement, filing or continuation of an involuntary case or proceeding under one or more Insolvency Laws against Guarantor;
or


 


(e)          the
appointment of a receiver, liquidator, custodian, sequestrator, trustee or other similar officer who exercises control over Guarantor
or any substantial part of the assets of Guarantor, as applicable;


 


provided, however, that any proceeding
or case under (d) or (e) above shall not be a Guarantor Bankruptcy Event until the ninetieth (90th) day after filing (if not earlier
dismissed) so long as such proceeding or case occurred without the consent, encouragement or active participation of (1) Borrower,
Guarantor or Key Principal, (2) any Person Controlling Borrower, Guarantor or Key Principal, or (3) any Person Controlled by or
under common Control with Borrower, Guarantor or Key Principal (in which event such case or proceeding shall be a Guarantor Bankruptcy
Event immediately).


 






    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
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“Guarantor’s General Business Address”
has the meaning set forth in the Summary of Loan Terms.


 


“Guarantor’s Notice Address” has the meaning
set forth in the Summary of Loan Terms.


 


“Guaranty” means, individually
and collectively, any Payment Guaranty, Non-Recourse Guaranty or other guaranty executed by Guarantor in connection with the Mortgage
Loan.


 


“Guaranty Fee” has the meaning set forth in
the Summary of Loan Terms.


 


“Immediate Family Members”
means a child, stepchild, grandchild, spouse, sibling, or parent, each of whom is not a Prohibited Person.


 


“Imposition Deposits” has the meaning set forth
in the Security Instrument. 


 


“Impositions” has the meaning set forth in the Security Instrument. 


 


“Improvements”
has the meaning set forth in the Security Instrument.


 


“Indebtedness” has the meaning set forth in the Security
Instrument.


 


“Index” has the meaning set forth in the Summary of Loan Terms.


 


“Initial Adjustable Rate”
has the meaning set forth in the Summary of Loan Terms.


 


“Initial Fixed Rate Payment Date”
means the first (1st) day of the calendar month following the Conversion Effective Date.


 


“Initial Monthly Debt Service Payment”
has the meaning set forth in the Summary of Loan Terms.


 


“Initial Replacement Reserve Deposit”
has the meaning set forth in the Summary of Loan Terms.


 


“Insolvency Laws” means
the United States Bankruptcy Code, 11 U.S.C. Section 101, et seq., together with any other federal or state law affecting debtor
and creditor rights or relating to the bankruptcy, insolvency, reorganization, arrangement, moratorium, readjustment of debt, dissolution,
liquidation or similar laws, proceedings, or equitable principles affecting the enforcement of creditors’ rights, as amended from
time to time.


 


“Insolvent” means:


 


(a)          that
the sum total of all of a specified Person’s liabilities (whether secured or unsecured, contingent or fixed, or liquidated or unliquidated)
is in excess of the value of such Person’s non-exempt assets, i.e., all of the assets of such Person that are available to satisfy
claims of creditors; or


 


(b)          such
Person’s inability to pay its debts as they become due.


 







    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
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“Intended Prepayment Date”
means the date upon which Borrower intends to make a prepayment on the Mortgage Loan, as set forth in the Prepayment Notice.


 


“Interest Accrual Method” has the meaning set
forth in the Summary of Loan Terms.


 


“Interest Only Term” has the meaning set forth in the Summary of Loan Terms.


 


“Interest Rate” means the Initial Adjustable Rate or the Adjustable Rate, as applicable.


 


“Interest Rate
Type” has the meaning set forth in the Summary of Loan Terms.


 


“Internal Revenue Code” means the Internal
Revenue Code of 1986, as amended.


 


“Investor” means any Person
to whom Lender intends to (a) sell, transfer, deliver or assign the Mortgage Loan in the secondary mortgage market, or (b) sell
an MBS backed by the Mortgage Loan.


 


“Investor Yield” means,
in connection with a Conversion, the percentage equal to (a) the required net yield offered for purchase by Fannie Mae or (b) the
MBS pass-through rate offered for purchase by regular buyers of mortgage backed securities, as applicable, for a new Fannie Mae
mortgage loan with the same or substantially similar loan terms and credit characteristics as the Mortgage Loan (taking into account
the Fixed Rate Option selected by Borrower).


 


“Key Principal” means, collectively:


 


(a)          the
natural person(s) or entity that Controls Borrower that Lender determines is critical to the successful operation and management
of Borrower and the Mortgaged Property, as identified as such in the Summary of Loan Terms; or


 


(b)          any
natural person or entity who becomes a Key Principal after the date of the Loan Agreement and is identified as such in an assumption
agreement, or another amendment or supplement to the Loan Agreement.


 


“Key Principal’s General Business
Address” has the meaning set forth in the Summary of Loan Terms.


 


“Key Principal’s Notice Address” has the meaning
set forth in the Summary of Loan Terms.


 


“Land” means the land described in Exhibit A to the Security Instrument.


 


“Last Interest Only Payment Date”
has the meaning set forth in the Summary of Loan Terms, if applicable.


 


“Late Charge” means an
amount equal to the delinquent amount then due under the Loan Documents multiplied by five percent (5%).


 


“Leases” has the meaning set forth in the Security
Instrument.


 


“Lender” means the entity
identified as “Lender” in the first paragraph of the Loan Agreement and its transferees, successors and assigns, or any
subsequent holder of the Note.


 







    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
	(Interest Rate Type - SARM)	Form 6101.SARM	Page 8
	Fannie Mae	01-16	© 2016 Fannie Mae




     


    

 


“Lender’s General Business Address”
has the meaning set forth in the Summary of Loan Terms.


 


“Lender’s Notice Address” has the meaning set
forth in the Summary of Loan Terms. 


 


“Lender’s Payment Address” has the meaning set forth in the Summary of Loan
Terms.


 


“Lien” has the meaning set forth in the Security Instrument.


 


“Loan Agreement” means
the Multifamily Loan and Security Agreement dated as of the date hereof executed by and between Borrower and Lender to which this
Definitions Schedule is attached, as the same may be amended, restated, replaced, supplemented or otherwise modified from time
to time.


 


“Loan Amount” has the meaning set forth in
the Summary of Loan Terms.


 


“Loan Application” means
the application for the Mortgage Loan submitted by Original Borrower to Lender.


 


“Loan Documents” means
the Note, the Loan Agreement, the Security Instrument, the Environmental Indemnity Agreement, the Guaranty, all guaranties, all
indemnity agreements, all Collateral Agreements, all O&M Plans, and any other documents now or in the future executed by Borrower,
Guarantor, Key Principal, any other guarantor or any other Person in connection with the Mortgage Loan, as such documents may be
amended, restated, replaced, supplemented or otherwise modified from time to time.


 


“Loan Servicer” means
the entity that from time to time is designated by Lender to collect payments and deposits and receive notices under the Note,
the Loan Agreement, the Security Instrument and any other Loan Document, and otherwise to service the Mortgage Loan for the benefit
of Lender. Unless Borrower receives notice to the contrary, the Loan Servicer shall be the Lender originally named on the Summary
of Loan Terms.


 


“Loan Term” has the meaning set forth in the
Summary of Loan Terms.


 


“Loan Year” has the meaning set forth in the
Summary of Loan Terms.


 


“Margin” has the meaning set forth in the Summary
of Loan Terms.


 


“Material Commercial Lease” means any Lease
that is not a Residential Lease, and which is:


 


(a)          a
Lease comprising five percent (5%) or more of total gross income of the Mortgaged Property on an annualized basis;


 


(b)          a
master Lease (which term “master Lease” shall include any master Lease to a single corporate tenant);


 


(c)          a
cell tower Lease;


 


(d)          a
solar (power) Lease;


 


(e)          a
solar power purchase agreement; or


 







    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
	(Interest Rate Type - SARM)	Form 6101.SARM	Page 9
	Fannie Mae	01-16	© 2016 Fannie Mae




     


    

 


(f)          a
Lease of oil, gas, or mineral rights.


 


“Maturity Date” has the
meaning set forth in the Summary of Loan Terms.


 


“Maximum Fixed Rate” means
the maximum Fixed Rate to which the Mortgage Loan may be converted, as determined by Lender, so that the Debt Service Coverage
Ratio of the Mortgage Loan is not less than the Minimum Conversion Debt Service Coverage Ratio.


 


“Maximum Inspection Fee” has
the meaning set forth in the Summary of Loan Terms.


 


“Maximum Repair Cost” shall
be the amount(s) set forth in the Required Repair Schedule, if any.


 


“Maximum Repair Disbursement Interval”
has the meaning set forth in the Summary of Loan Terms.


 


“Maximum Replacement Reserve Disbursement
Interval” has the meaning set forth in the Summary of Loan Terms.


 


“MBS” means an investment
security that represents an undivided beneficial interest in a pool of mortgage loans or participation interests in mortgage loans
held in trust pursuant to the terms of a governing trust document.


 


“Mezzanine Debt” means
a loan to a direct or indirect owner of Borrower secured by a pledge of such owner’s interest in an entity owning a direct or indirect
interest in Borrower.


 


“Minimum Conversion Debt Service
Coverage Ratio” has the meaning set forth in the Summary of Loan Terms.


 


“Minimum Repairs Disbursement Amount”
has the meaning set forth in the Summary of Loan Terms.


 


“Minimum Replacement Reserve Disbursement
Amount” has the meaning set forth in the Summary of Loan Terms.


 


“Monthly Debt Service Payment”
has the meaning set forth in the Summary of Loan Terms.


 


“Monthly Replacement Reserve Deposit”
has the meaning set forth in the Summary of Loan Terms.


 


“Mortgage Loan” means
the mortgage loan made by Lender to Original Borrower in the principal amount of the Note made pursuant to the Loan Agreement,
evidenced by the Note and secured by the Loan Documents that are expressly stated to be security for the Mortgage Loan.


 


“Mortgaged Property” has
the meaning set forth in the Security Instrument.


 


“Multifamily Project” has
the meaning set forth in the Summary of Loan Terms.


 


“Multifamily Project Address”
has the meaning set forth in the Summary of Loan Terms.


 


“Net Operating Income” means
the amount determined by Lender to be the net operating income of the Mortgaged Property.


 







    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
	(Interest Rate Type - SARM)	Form 6101.SARM	Page 10
	Fannie Mae	01-16	© 2016 Fannie Mae




     


    

 


“New Maturity Date” means
the Maturity Date of the Mortgage Loan following the Conversion, as set forth on the Summary of Loan Terms attached as Schedule
2 to the Conversion Amendment, which date may be the same as, or later than, the Maturity Date prior to the exercise of the
Conversion.


 


“NOI Determination Notice”
means the notice given by Lender to Borrower pursuant to the Conversion Option in which Lender establishes the Net Operating
Income and the Maximum Fixed Rate to which the Mortgage Loan may be converted.


 


“NOI Determination Request”
means the notice given by Borrower to Lender to exercise the Conversion Option in which Borrower requests that Lender determines
the Net Operating Income and the Maximum Fixed Rate to which the Mortgage Loan may be converted.


 


“Non-Recourse Guaranty” means,
if applicable, that certain Guaranty of Non-Recourse Obligations of even date herewith executed by Guarantor to and for the benefit
of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.


 


“Note” means that certain
Multifamily Note dated as of the Effective Date in the original principal amount of the stated Loan Amount made by Original Borrower
in favor of Prior Lender, and all schedules, riders, allonges and addenda attached thereto, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time.


 


“O&M Plan” has the meaning set forth in
the Environmental Indemnity Agreement.


 


“OFAC” means the United
States Treasury Department, Office of Foreign Assets Control, and any successor thereto.


 


“Payment Change Date” has the meaning set forth
in the Summary of Loan Terms.


 


“Payment Date” means the
First Payment Date and the first (1st) day of each month thereafter until the Mortgage Loan is fully paid.


 


“Payment Guaranty” means,
if applicable, that certain Guaranty (Payment) of even date herewith executed by Guarantor to and for the benefit of Lender, as
the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.


 


“Permitted Encumbrance” has the meaning set
forth in the Security Instrument.


 


“Permitted Mezzanine Debt”
means Mezzanine Debt incurred by a direct or indirect owner or owners of Borrower where the exercise of any of the rights and
remedies by the holder or holders of the Mezzanine Debt would not in any circumstance cause (a) a change in Control in Borrower,
Key Principal, or Guarantor, or (b) a Transfer of a direct or indirect Restricted Ownership Interest in Borrower, Key Principal,
or Guarantor (or, with respect to clauses (a) and (b), if such rights are provided, the exercise of such rights do not violate
the Loan Documents or are otherwise exercised with the prior written consent of Lender in accordance with Article 11 (Liens, Transfers
and Assumptions) of the Loan Agreement and the payment of all applicable fees and expenses as set forth in Section 11.03(g) (Further
Conditions to Transfers and Assumption)).


 






    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
	(Interest Rate Type - SARM)	Form 6101.SARM	Page 11
	Fannie Mae	01-16	© 2016 Fannie Mae




     


    

 


“Permitted Preferred Equity”
means Preferred Equity that does not (a) require mandatory dividends, distributions, payments or returns (including at maturity
or in connection with a redemption), or (b) provide the Preferred Equity owner with rights or remedies on account of a failure
to receive any preferred dividends, distributions, payments or returns (or, with respect to clauses (a) and (b), if such rights
are provided, the exercise of such rights do not violate the Loan Documents or are otherwise exercised with the prior written
consent of Lender in accordance with Article 11 (Liens, Transfers and Assumptions) of the Loan Agreement and the payment of all
applicable fees and expenses as set forth in Section 11.03(g) (Further Conditions to Transfers and Assumption)).


 


“Permitted Prepayment Date” means the last
Business Day of a calendar month.


 


“Permitted Property Transfer”
shall mean, subject to the satisfaction of the stated conditions in Section 11.04, any sale, transfer or other disposition
of all or any portion of the Mortgaged Property and the assumption of the Mortgage Loan by the transferee.


 


“Permitted Transfer” shall
mean, subject to the satisfaction of the stated conditions in Section 11.03(h) or 11.04, as applicable, any sale, transfer or other
disposition (whether by devise or descent or by operation of law upon death or incapacity) of any direct or indirect (i) equity
interest in Borrower; or (ii) non-member manager interest in Borrower.


 


“Person” means an individual,
an estate, a trust, a corporation, a partnership, a limited liability company or any other organization or entity (whether governmental
or private).


 


“Personal Property” means
the Goods, accounts, choses of action, chattel paper, documents, general intangibles (including Software), payment intangibles,
instruments, investment property, letter of credit rights, supporting obligations, computer information, source codes, object codes,
records and data, all telephone numbers or listings, claims (including claims for indemnity or breach of warranty), deposit accounts
and other property or assets of any kind or nature related to the Land or the Improvements, including operating agreements, surveys,
plans and specifications and contracts for architectural, engineering and construction services relating to the Land or the Improvements,
and all other intangible property and rights relating to the operation of, or used in connection with, the Land or the Improvements,
including all governmental permits relating to any activities on the Land.


 


“Personalty” has the meaning set forth in the
Security Instrument.


 


“Preferred Equity” means
a direct or indirect equity ownership interest in, economic interests in, or rights with respect to, Borrower that provide an equity
owner preferred dividend, distribution, payment, or return treatment relative to other equity owners.


 


“Prepayment Lockout Period” has the meaning
set forth in the Summary of Loan Terms.


 


“Prepayment Notice” means
the written notice that Borrower is required to provide to Lender in accordance with Section 2.03 (Lockout/Prepayment) of the Loan
Agreement in order to make a prepayment on the Mortgage Loan, which shall include, at a minimum, the Intended Prepayment Date.


 


“Prepayment Premium” means
the amount payable by Borrower in connection with a prepayment of the Mortgage Loan, as provided in Section 2.03 (Lockout/Prepayment)
of the Loan Agreement and calculated in accordance with the Prepayment Premium Schedule.


 


“Prepayment Premium Schedule”
means that certain Schedule 4 (Prepayment Premium Schedule) to the Loan Agreement.


 







    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
	(Interest Rate Type - SARM)	Form 6101.SARM	Page 12
	Fannie Mae	01-16	© 2016 Fannie Mae




     


    

 


“Prepayment Premium Term” has the meaning set
forth in the Summary of Loan Terms.


 


“Prohibited Person” means:


 


(a)          any
Person with whom Lender or Fannie Mae is prohibited from doing business pursuant to any law, rule, regulation, judicial proceeding
or administrative directive; or


 


(b)          any
Person identified on the United States Department of Housing and Urban Development’s “Limited Denial of Participation, HUD
Funding Disqualifications and Voluntary Abstentions List,” or on the General Services Administration’s “System for
Award Management (SAM)” exclusion list, each of which may be amended from time to time, and any successor or replacement thereof;
or


 


(c)          any
Person that is determined by Fannie Mae to pose an unacceptable credit risk due to the aggregate amount of debt of such Person
owned or held by Fannie Mae; or


 


(d)          any
Person that has caused any unsatisfactory experience of a material nature with Fannie Mae or Lender, such as a default, fraud,
intentional misrepresentation, litigation, arbitration or other similar act.


 


“Property Jurisdiction” has the meaning set
forth in the Security Instrument. 


 


“Property Square Footage” has the meaning set forth in the Summary of Loan Terms.


 


“Publicly-Held Corporation”
means a corporation, the outstanding voting stock of which is registered under Sections 12(b) or 12(g) of the Securities Exchange
Act of 1934, as amended.


 


“Publicly-Held Trust” means
a real estate investment trust, the outstanding voting shares or beneficial interests of which are registered under Sections 12(b)
or 12(g) of the Securities Exchange Act of 1934, as amended.


 


“Rate Change Date” has the meaning set forth
in the Summary of Loan Terms.


 


“Rate Lock Request” means
a request from Borrower to Lender for a rate quote for the Fixed Rate (based on the Fixed Rate Option selected by Borrower) which
shall apply after the Conversion Effective Date.


 


“Rents” has the meaning set forth in the Security
Instrument.


 


“Repair Threshold” has the meaning set forth
in the Summary of Loan Terms.


 


“Repairs” means, individually
and collectively, the Required Repairs, Borrower Requested Repairs, and Additional Lender Repairs.


 


“Repairs Escrow Account” means
the account established by Lender into which the Repairs Escrow Deposit is deposited to fund the Repairs.


 


“Repairs Escrow Account Administrative
Fee” has the meaning set forth in the Summary of Loan Terms.


 


“Repairs Escrow Deposit” has the meaning set
forth in the Summary of Loan Terms.


 







    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
	(Interest Rate Type - SARM)	Form 6101.SARM	Page 13
	Fannie Mae	01-16	© 2016 Fannie Mae




     


    

 


“Replacement Reserve Account”
means the account established by Lender into which the Replacement Reserve Deposits are deposited to fund the Replacements.


 


“Replacement Reserve Account Administration
Fee” has the meaning set forth in the Summary of Loan Terms.


 


“Replacement Reserve Account Interest
Disbursement Frequency” has the meaning set forth in the Summary of Loan Terms.


 


“Replacement Reserve Deposits”
means the Initial Replacement Reserve Deposit, Monthly Replacement Reserve Deposits and any other deposits to the Replacement
Reserve Account required by the Loan Agreement.


 


“Replacement Threshold” has the meaning set
forth in the Summary of Loan Terms.


 


“Replacements” means,
individually and collectively, the Required Replacements, Borrower Requested Replacements and Additional Lender Replacements.


 


“Required Repair Schedule”
means that certain Schedule 6 (Required Repair Schedule) to the Loan Agreement.


 


“Required Repairs” means those items listed
on the Required Repair Schedule.


 


“Required Replacement Schedule”
means that • certain Schedule 5 (Required Replacement Schedule) to the Loan Agreement.


 


“Required Replacements” means those items listed
on the Required Replacement Schedule.


 


“Required Sherwood Control Entity
Percentage” shall mean the requirement that Sherwood maintain, either directly or indirectly, at least fifteen percent
(15%) of the limited partnership, membership or shareholder interests in any entity that Controls Borrower or if Borrower is comprised
of 2 or more Co-Tenants any such Co-Tenant that is a Sherwood Co-Tenant (subject to any Permitted Transfers under Section 11.03(c))


 


“Required Sherwood Ownership Percentages”
shall mean the Required Sherwood Control Entity Percentage.


 


“Reserve/Escrow Account Funds”
means, collectively, the funds on deposit in the Reserve/Escrow Accounts.


 


“Reserve/Escrow Accounts”
means, together, the Replacement Reserve Account and the Repairs Escrow Account.


 


“Residential Lease” means
a Lease of an individual dwelling unit and shall not include any master Lease (which term “master Lease” includes any
master Lease to a single corporate tenant).


 


“Restoration” means restoring
and repairing the Mortgaged Property to the equivalent of its physical condition immediately prior to the casualty or to a condition
approved by Lender following a casualty.


 


“Restricted Ownership Interest” means, with
respect to any entity, the following:


 







    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
	(Interest Rate Type - SARM)	Form 6101.SARM	Page 14
	Fannie Mae	01-16	© 2016 Fannie Mae




     


    

 


(a)          if
such entity is a general partnership or a joint venture, fifty percent (50%) or more of all general partnership or joint venture
interests in such entity;


 


(b)          if
such entity is a limited partnership:


 


(1)         the
interest of any general partner; or


 


(2)         fifty
percent (50%) or more of all limited partnership interests in such entity;


 


(c)          if
such entity is a limited liability company or a limited liability partnership:


 


(1)         the
interest of any managing member or the contractual rights of any nonmember manager; or


 


(2)         fifty
percent (50%) or more of all membership or other ownership interests in such entity;


 


(d)          if
such entity is a corporation (other than a Publicly-Held Corporation) with only one class of voting stock, fifty percent (50%)
or more of voting stock in such corporation;


 


(e)          if
such entity is a corporation (other than a Publicly-Held Corporation) with more than one class of voting stock, the amount of
shares of voting stock sufficient to have the power to elect the majority of directors of such corporation; or


 


(f)          if
such entity is a trust (other than a land trust or a Publicly-Held Trust), the power to Control such trust vested in the
trustee of such trust or the ability to remove, appoint or substitute the trustee of such trust (unless the trustee of such
trust after such removal, appointment or substitution is a trustee identified in the trust agreement approved by Lender).


 


“Review Fee” means the non-refundable fee of $3,000
payable to Lender.


 


“Sanctioned Country” means a
country subject to a comprehensive country-wide sanctions program administered and enforced by OFAC, which list is updated from
time to time.


 


“Sanctioned Person” means (a)
a Person named on the list of “Specially Designated Nationals and Blocked Persons” maintained by OFAC, available at
http://www.treasury.goviresource-center/sanctions/SDN-List/Pages/default.aspx, or as otherwise published from time to time;
(b) (1) an agency of the government of a Sanctioned Country, (2) an organization controlled by a Sanctioned Country, or (3) a
Person resident in a Sanctioned Country, to the extent any Person described in clauses (1), (2) or (3) is the subject of a sanctions
program administered by OFAC; and, (c) a Person whose property and interests in property are blocked pursuant to an Executive
Order or regulations administered by OFAC consistent with the guidance issued by OFAC.


 


“Schedule of Interest Rate Type Provisions”
means that certain Schedule 3 (Schedule of Interest Rate Type Provisions) to the Loan Agreement.


 


“Security Instrument” means that
certain multifamily mortgage, deed to secure debt or deed of trust executed and delivered by Original Borrower as security for
the Mortgage Loan and encumbering the Mortgaged Property, including all riders or schedules attached thereto, as the same may be
amended, restated, replaced, supplemented or otherwise modified from time to time.


 







    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
	(Interest Rate Type - SARM)	Form 6101.SARM	Page 15
	Fannie Mae	01-16	© 2016 Fannie Mae




     


    

 


“Servicing Arrangement” means
any arrangement between Lender and the Loan Servicer for loss sharing or interim advancement of funds.


 


“Servicing Fee” has the
meaning set forth in the Summary of Loan Terms.


 


“Sherwood” means Steven
J. Sherwood or in the event of the death of Sherwood, the replacement guarantor(s) approved by Lender pursuant to Section 11.03(e).


 


“Sherwood Affiliate” means
any partnership, limited partnership, corporation, limited liability company or other type of entity that Sherwood Controls, and
whose general partner, managing member, manager or Controlling shareholder, as applicable, Sherwood Controls.


 


“Sherwood Co-Tenants” means
any Co-Tenant that Sherwood Controls and whose general partner, managing member, manager or Controlling shareholder, as applicable,
Sherwood Controls.


 


“Summary of Loan Terms” means
that certain Schedule 2 (Summary of Loan Terms) to the Loan Agreement.


 


“Survey” means the plat
of survey of the Mortgaged Property approved by Lender.


 


“Taxes” has the meaning set forth in the Security Instrument.


 


“Title Policy” means the
mortgagee’s loan policy of title insurance issued in connection with the Mortgage Loan and insuring the lien of the Security Instrument
as set forth therein, as approved by Lender.


 


“Tenancy-in-Common Agreement”
means any future agreement, approved by Lender, executed between owners of the Mortgaged Property as Tenants-in-Common.


 


“Total Parking Spaces” has
the meaning set forth in the Summary of Loan Terms.


 


“Total Residential Units” has the meaning set forth in the
Summary of Loan Terms. 


 


“Transfer” means:


 


(a)          a
sale, assignment, transfer or other disposition (whether voluntary, involuntary, or by operation of law), other than Residential
Leases, Material Commercial Leases or non-Material Commercial Leases permitted by this Loan Agreement;


 


(b)          a
granting, pledging, creating or attachment of a lien, encumbrance or security interest (whether voluntary, involuntary, or by operation
of law);


 


(c)          an
issuance or other creation of a direct or indirect ownership interest;


 


(d)          a
withdrawal, retirement, removal or involuntary resignation of any owner or manager of a legal entity; or


 


(e)          a
merger, consolidation, dissolution or liquidation of a legal entity.


 


“Transfer Fee” means a
fee equal to one percent (1%) of the unpaid principal balance of the Mortgage Loan payable to Lender.


 




    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
	(Interest Rate Type - SARM)	Form 6101.SARM	Page 16
	Fannie Mae	01-16	© 2016 Fannie Mae




     


    

 


“UCC” has the meaning set forth in the Security Instrument.


 


“UCC Collateral” has the meaning set forth
in the Security Instrument.


 


“Underwriting Interest Rate”
means, in connection with the Conversion, the then-current minimum underwriting interest rate (if applicable) used by Lender
for underwriting new loans with the same or substantially similar loan terms and credit characteristics as the Mortgage Loan (taking
into account the Fixed Rate Option selected by Borrower).


 


“Voidable Transfer” means
any fraudulent conveyance, preference or other voidable or recoverable payment of money or transfer of property.


 







    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
	(Interest Rate Type - SARM)	Form 6101.SARM	Page 17
	Fannie Mae	01-16	© 2016 Fannie Mae




     


    

 


	 	/s/ Initials
	 	Borrower Initials


 




    
	Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule	 	 
	(Interest Rate Type - SARM)	Form 6101.SARM	Page 18
	Fannie Mae	01-16	© 2016 Fannie Mae




     


    







 


SCHEDULE 2


TO MULTIFAMILY
LOAN AND SECURITY AGREEMENT


 


Summary of Loan
Terms


(Interest Rate
Type - Structured ARM (1 and 3 Month LIBOR))


 


I.                GENERAL
PARTY AND MULTIFAMILY PROJECT INFORMATION


 


	Borrower	 	BR CWS CROWN RIDGE OWNER, LLC, a Delaware limited liability company
	 	 	 
	Lender	 	FANNIE MAE, a corporation duly organized under the Federal National Mortgage Association
    Charter Act, as amended, 12 U.S.C. § 1716 et seq., and duly organized and existing under the laws of the United States
	 	 	 
	Key Principal	 	Bluerock Residential Growth
        REIT, Inc.

        Steven J. Sherwood

        The Steven Sherwood Trust, Established
        September 8, 1994

	 	 	 
	Guarantor	 	Steven J. Sherwood

        The Steven Sherwood Trust, Established
        September 8, 1994

	 	 	 
	Multifamily Project	 	Marquis at Crown Ridge f/k/a The Estates at Crown Ridge
	 	 	 
	 	 	ADDRESSES
	 	 	 
	Borrower’s General Business Address	 	c/o Bluerock Real Estate, L.L.C. 

    712 Fifth Avenue, 9th Floor 

    New York, New York 10019 

    Attn: Jordan Ruddy
	 	 	 
	Borrower’s Notice Address	 	c/o Bluerock Real Estate, L.L.C.

        712 Fifth Avenue, 9th Floor

        New York, New York 10019

        Attn: Jordan Ruddy

        Email: jruddy@bluerockre.com

        with a copy to:

         

        CWS Capital Partners LLC

        14 Corporate Plaza, Suite 210

        Newport Beach, CA 92660

        Email: mbarlow@cwscapital.com

        gcarmell@cwscapital.com

        brose@cwscapital.com



 




    	 Schedule 2 to Multifamily Loan and 
 Security Agreement - Summary of Loan
 Terms (Interest Rate Type - SARM)
	Form 6102.SARM
	Page 1 
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    

  


	Multifamily Project Address	 	18385 Babcock RoadSan Antonio, Texas 78255
	 	 	 
	Multifamily Project County	 	Bexar County
	 	 	 
	Key Principal’s General Business Address	 	Bluerock Residential Growth
        REIT, Inc.

        do Bluerock Real Estate, L.L.C.

        712 Fifth Avenue, 9th Floor

        New York, New York 10019

        Attn: Jordan Ruddy

        Steven J. Sherwood and The Steven
        Sherwood Trust,

        Established September
        8, 1994

        9606 North Mopac Expressway,
        Suite 500

        Austin, Texas 78759

	 	 	 
	 	 	Key Principal’s
        Notice Address

         

        Bluerock Residential Growth
        REIT, Inc.

        c/o Bluerock Real Estate, L.L.C.

        712 Fifth Avenue, 9th Floor

        New York, New York 10019

        Attn: Jordan Ruddy

        Email: jruddy@bluerockre.com

        Steven J. Sherwood and The Steven
        Sherwood Trust,

        Established September
        8, 1994

        9606 North Mopac Expressway,
        Suite 500

        Austin, Texas 78759

        Email: mbarlow@cwscapital.com

        gcarmell@cwscapital.com

        brose@cwscapital.com

	 	 	 
	Guarantor’s General Business Address	 	9606 North Mopac Expressway, Suite 500 

    Austin, Texas 78759
	 	 	 
	Guarantor’s Notice Address	 	9606 North Mopac Expressway,
        Suite 500

        Austin, Texas 78759

        Email:
        mbarlow@cwscapital.com

        gcarmell@cwscapital.com

        brose@cwscapital.com

	 	 	 
	Lender’s General Business Address	 	2010 Corporate Ridge, Suite 1000McLean, Virginia 22102
	 	 	 
	Lender’s Notice Address	 	2010 Corporate Ridge, Suite
        1000

        McLean, Virginia 22102

        Email: maureen.c.fitzgerald@wellsfargo.com

	 	 	 
	Lender’s Payment Address	 	2010 Corporate Ridge, Suite 1000 

    McLean, Virginia 22102


 




    	 Schedule 2 to Multifamily Loan and 
 Security Agreement - Summary of Loan
 Terms (Interest Rate Type - SARM)
	Form 6102.SARM
	Page 2 
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    

  


II.              MULTIFAMILY
PROJECT INFORMATION


 


	Property Square Footage	 	15.37 acres
	 	 	 
	Total Parking Spaces	 	537
	 	 	 
	Total Residential Units	 	352
	 	 	 
	Affordable Housing Property	 	[-I        Yes




	 	 	             No


 


III.              MORTGAGE
LOAN INFORMATION


 


	Adjustable
                           Rate

        
	 	Until the first Rate Change Date,
    the Initial Adjustable Rate, and from and after each Rate Change Date following the first Rate Change Date until the next
    Rate Change Date, a per annum interest rate that is the sum of (i) the Current Index, and (ii) the Margin, which sum is then
    rounded to the nearest three (3) decfmal places; provided, however, that the Adjustable Rate shall never be less than the
    Margin.
	 	 	 
	Amortization Period	 	360 months.
	 	 	 
	Amortization Type	 	ri          Amortizing
	 	 	E        Full
        Term Interest Only Partial Interest Only
	 	 	 
	Current Index	 	The published Index that is effective on the Business
    Day immediately preceding the applicable Rate Change Date.
	 	 	 
	Effective Date	 	As of May 27, 2014
	 	 	 
	First Payment Date	 	July 1, 2014
	 	 	 
	First Principal and Interest Payment Date	 	July 1, 2016
	 	 	 
	Fixed Monthly Principal 

    Component	 	$48,581.35


 




    	 Schedule 2 to Multifamily Loan and 
 Security Agreement - Summary of Loan
 Terms (Interest Rate Type - SARM)
	Form 6102.SARM
	Page 3 
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    

  


	Fixed Rate Amortization Factor	 	4.11% per annum.
	 	 	 
	Index	 	The
        ICE Benchmark Administration Limited (or any successor administrator) fixing of the London Inter-Bank Offered Rate for
        1-month U.S. Dollar-denominated deposits as reported by Reuters through electronic transmission. If the Index is no longer
        available, or is no longer posted through electronic transmission, Lender will choose a new index that is based upon
        comparable information.

	 	 	 
	Initial Adjustable Rate	 	1.760% per annum.
	 	 	 
	Initial Monthly Debt Service Payment	 	$44,133.47
	 	 	 
	Interest Accrual Method	 	Actual/360
(computed on the basis of a three hundred sixty (360) day year and the actual number of calendar days
during the applicable month, calculated by multiplying the unpaid principal balance of the Mortgage
Loan by the Interest Rate, dividing the product by three hundred sixty (360), and multiplying the quotient obtained by the actual
number of days elapsed in the applicable month).

	 	 	 
	Interest Only Term	 	24 months.
	 	 	 
	Interest Rate Type	 	Structured ARM
	 	 	 
	Last Interest Only Payment Date	 	June 1, 2016
	 	 	 
	Loan Amount	 	$30,091,000.00
	 	 	 
	Loan Term	 	120 months
	 	 	 
	Loan Year	 	The period beginning on the Effective Date and
    ending on the last day of May, 2015, and each successive twelve (12) month period thereafter.
	 	 	 
	Margin	 	1.610%


 




    	 Schedule 2 to Multifamily Loan and 
 Security Agreement - Summary of Loan
 Terms (Interest Rate Type - SARM)
	Form 6102.SARM
	Page 4 
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    




 


	Maturity Date	 	June 1, 2024, or any later date to
which the Maturity Date may be extended (if at all) in connection with an election by Borrower to convert the Interest Rate on
the Mortgage Loan to a fixed rate pursuant to the terms of the Loan Agreement, or any earlier date on which the unpaid principal
balance of the Mortgage Loan becomes due and payable by acceleration or otherwise.
	 	 	 
	Monthly Debt Service Payment	 	(i)           for
        the First Payment Date, the Initial Monthly Debt Service Payment;

         

        (ii)          for
        each Payment Date thereafter through and including the Last Interest Only Payment Date, the amount obtained by multiplying
        the unpaid principal balance of the Mortgage Loan by the Adjustable Rate, dividing the product by three hundred sixty
        (360), and multiplying the quotient by the actual number of days elapsed in the applicable month;

         

        (iii)          for
        the First Principal and Interest Payment Date and each Payment Date thereafter until the Mortgage Loan is fully paid,
        an amount equal to the sum of:

         

        (1)      the Fixed Monthly Principal Component; plus

         

        (2)      an
        interest payment equal to the amount obtained by multiplying the unpaid principal balance of the Mortgage Loan by the Adjustable Rate, dividing the product by three hundred sixty (360), and
        multiplying the quotient by the actual number of days elapsed in the applicable month.

	 	 	 
	Payment Change Date	 	The first (1st) day of the
    month following each Rate Change Date until the Mortgage Loan is fully paid.
	 	 	 
	Prepayment Lockout Period	 	The first (1st) Loan Year
    of the term of the Mortgage Loan.
	 	 	 
	Rate Change Date	 	The First Payment Date and the first (1st) day
    of each month thereafter until the Mortgage Loan is fully paid.


 


IV.             YIELD
                                         MAINTENANCE/PREPAYMENT PREMIUM INFORMATION


 


	Prepayment Premium Term	 	The period beginning
    on the Effective Date and ending on the last calendar day of the fourth (4th) month prior to the month in which the Maturity
    Date occurs.




 






    	 Schedule 2 to Multifamily Loan and 
 Security Agreement - Summary of Loan
 Terms (Interest Rate Type - SARM)
	Form 6102.SARM
	Page 5 
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    

 


V.              RESERVE
INFORMATION


 


	Completion Period	 	Within sixty
    (60) days after June 9, 2017 or as otherwise shown on the Required Repair Schedule.
	 	 	 
	Initial Replacement Reserve Deposit	 	$0.00
	 	 	 
	Maximum Inspection Fee	 	Actual expenses incurred
	 	 	 
	Maximum Repair Disbursement Interval	 	One time per calendar quarter
	 	 	 
	Maximum Replacement Reserve Disbursement Interval	 	One time per calendar quarter
	 	 	 
	Minimum Repairs Disbursement Amount	 	$5,000.00
	 	 	 
	Minimum Replacement Reserve Disbursement Amount	 	$5,000.00
	 	 	 
	Monthly Replacement Reserve Deposit	 	$7,333.33
	 	 	 
	Repair Threshold	 	$50,000.00
	 	 	 
	Repairs Escrow Account Administrative Fee	 	None
	 	 	 
	Repairs Escrow Deposit	 	$0.00
	 	 	 
	Replacement Reserve Account Administration
    Fee	 	None
	 	 	 
	Replacement Reserve Account Interest Disbursement
    Frequency	 	Quarterly
	 	 	 
	Replacement Threshold	 	$50,000.00


 




    	 Schedule 2 to Multifamily Loan and 
 Security Agreement - Summary of Loan
 Terms (Interest Rate Type - SARM)
	Form 6102.SARM
	Page 6 
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    




 


VI.                CONVERSION
OPTION — SARM LOAN


 


	Conversion Review Fee	 	A non-refundable fee in the amount of $5,000.00.
	 	 	 
	Guaranty Fee	 	The guaranty fee offered by Fannie Mae for a new Fannie Mae mortgage
    loan with the same or substantially similar loan terms and credit characteristics as the Mortgage Loan (taking into account
    the Fixed Rate Option selected by Borrower) at the time of the Conversion Effective Date.
	 	 	 
	Minimum Conversion Debt Service Coverage Ratio	 	1.25
	 	 	 
	Servicing Fee	 	The
        servicing fee offered by Fannie Mae for a new Fannie Mae mortgage loan with the same or substantially similar loan
        terms and credit characteristics as the Mortgage Loan (taking into account the Fixed Rate Option
        selected by Borrower) at the time of the Conversion Effective Date.



 




    	 Schedule 2 to Multifamily Loan and 
 Security Agreement - Summary of Loan
 Terms (Interest Rate Type - SARM)
	Form 6102.SARM
	Page 7 
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    

  


	 	/s/ Initials
	 	Borrower Initials


 




    	 Schedule 2 to Multifamily Loan and 
 Security Agreement - Summary of Loan
 Terms (Interest Rate Type - SARM)
	Form 6102.SARM
	Page 8 
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    

  


MODIFICATIONS TO
MULTIFAMILY LOAN AND SECURITY AGREEMENT


 


ADDENDA TO SCHEDULE
2 — SUMMARY OF LOAN TERMS

(Replacement Reserve Deposits — Deposits Partially or Fully Waived)






 


VII. REPLACEMENT RESERVE — DEPOSITS PARTIALLY OR FULLY WAIVED


  


	Reduced Monthly Replacement Reserve
    Deposit	 	$0.00


 



    	Modifications to Multifamily Loan and
 Security Agreement - Schedule 2 Addenda
 - Summary of Loan Terms (Replacement
 Reserve - Deposits Partially or Fully
 Waived)	Form 6102.04
	Page 1
	Fannie Mae	04-12
	© 2012 Fannie Mae




     


    




 


	 	/s/ Initials
	 	Borrower Initials


 




    	Modifications to Multifamily Loan and
 Security Agreement - Schedule 2 Addenda
 - Summary of Loan Terms (Replacement
 Reserve - Deposits Partially or Fully
 Waived)	Form 6102.04
	Page 2
	Fannie Mae	04-12
	© 2012 Fannie Mae




     


    

  


SCHEDULE 3


TO MULTIFAMILY
LOAN AND SECURITY AGREEMENT


 


Schedule of Interest
Rate Type Provisions


(Structured ARM
(1 and 3 Month LIBOR)) and Fixed Rate Conversion Option


 


1.            Defined Terms.


 


Capitalized
terms not otherwise defined in this Schedule have the meanings given to such terms in the Definitions Schedule to the Loan Agreement.


 


2.            Interest Accrual.


 


Except
as otherwise provided in the Loan Agreement, interest shall accrue at the Adjustable Rate until the Mortgage Loan is fully paid.


 


3.            Adjustable Rate; Adjustments.


 


The
Initial Adjustable Rate shall be effective until the first Rate Change Date. Thereafter, the Adjustable Rate shall change on each
Rate Change Date based on fluctuations in the Current Index.


 


4.            Fixed Monthly Principal Component.


 


Each
amortizing Monthly Debt Service Payment shall include a principal payment equal to the Fixed Monthly Principal Component, which
shall be determined using the Fixed Rate Amortization Factor.


 


5.            Notification of Interest Rate
Change and Monthly Debt Service Payment.


 


Before
each Payment Change Date, Lender shall notify Borrower of any change in the Adjustable Rate and the amount of the next Monthly
Debt Service Payment.


 


6.            Correction to Monthly Debt
Service Payments.


 


If
Lender determines at any time that it has miscalculated the amount of a Monthly Debt Service Payment (whether because of a miscalculation
of the Adjustable Rate or otherwise), then Lender shall give notice to Borrower of the corrected amount of the Monthly Debt Service
Payment (and the corrected Adjustable Rate, if applicable) and a. if the corrected amount of the Monthly Debt Service Payment
represents an increase, then Borrower shall, within thirty (30) calendar days thereafter, pay to Lender any sums that Borrower
would have otherwise been obligated to pay to Lender had the amount of the Monthly Debt Service Payment not been miscalculated,
or b. if the corrected amount of the Monthly Debt Service Payment represents a decrease and Borrower is not otherwise in default
under any of the Loan Documents, then Borrower shall thereafter be paid the sums that Borrower would not have otherwise been obligated
to pay to Lender had the amount of the Monthly Debt Service Payment not been miscalculated.


 




    	Schedule 3 to Multifamily Loan and
 Security Agreement - Interest Rate and
 Conversion Provisions (SARM)	Form 6103.SARM
	Page 1
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    

 


7.            Conversion to Fixed
Rate.


 


(a)            Conversion Option.


 


(1)             Subject to the following
terms and conditions, Borrower may exercise the Conversion Option pursuant to which the interest
rate payable on the Mortgage Loan may be converted, one (1) time only, on any Payment Date during the Conversion Period from the
Adjustable Rate to the Fixed Rate, after which the interest rate on the Mortgage Loan shall remain at the Fixed Rate until the
New Maturity Date.


 


(2)            For Mortgage Loans
that are full-term interest-only, the Amortization Period from and after the Conversion Effective
Date shall be three hundred sixty (360) months. For all other Mortgage Loans, including Mortgage Loans that are partial interest-only
or amortizing, the Amortization Period from and after the Conversion Effective Date shall be:


 


(A)            three
hundred sixty (360) months, if (i) Borrower selects a Fixed Rate Option having a term greater than or equal to the original term
of the Mortgage Loan from the Effective Date through the Maturity Date, and (ii) the most recent inspection of the Mortgaged Property
by Lender resulted in a rating of either “1” or “2”; or


 


(B)            in
all other cases, the number of months equal to (A) three hundred sixty (360) months, minus (B) the number of Monthly Debt Service
Payments that have elapsed since the Effective Date.


 


(3)         The
Monthly Debt Service Payment following a Conversion shall be in an amount required to pay the unpaid principal balance of the
Mortgage Loan immediately prior to the Initial Fixed Rate Payment Date in equal monthly installments, including accrued
interest at the Fixed Rate, over the Amortization Period utilizing the 30/360 Interest Accrual Method even if Actual/360 is
the Interest Accrual Method.


 


(4)        The
Conversion Option shall lapse (A) at 5:00 p.m. (Eastern Time) on the ninetieth (90th) day prior to the expiration of the
Conversion Period if Borrower has not previously delivered to Lender an NOI Determination Request in accordance with the
terms of this Schedule or (B) on the Conversion Effective Date, if the Conversion Option is timely exercised but the Fixed
Rate does not become effective on such Conversion Effective Date.


 


(5)        It
is anticipated that the Conversion will be effected by the issuance by Lender of a fixed-rate MBS or by the cash purchase of
the Mortgage Loan by Lender into its portfolio (subject to the provisions of Section 7(b)(2) of this Schedule). Borrower
acknowledges, however, that the Conversion is contingent on the capital markets generally, and that from time to time,
disruptions in the capital markets may make Conversion infeasible. In the event Lender is not able to obtain any quotes for
the Mortgage Loan at the Fixed Rate (and does not make a cash bid for the Mortgage Loan), or if the quotes exceed the Maximum
Fixed Rate, the interest rate on the Mortgage Loan shall remain at the Adjustable Rate.


 




    	Schedule 3 to Multifamily Loan and
 Security Agreement - Interest Rate and
 Conversion Provisions (SARM)	Form 6103.SARM
	Page 2
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    

  


(b)           Procedures for Conversion.


 


(1)           NOI Determination Request.


 


(A)            Subject
to the terms of the Loan Agreement, if Borrower desires to exercise the Conversion Option, Borrower shall submit an NOI Determination
Request to Lender, which shall include Borrower’s selection of a Fixed Rate Option.


 


(B)               The
NOI Determination Request shall be accompanied by the Conversion Review Fee in the form of a check payable to Lender or by wire
transfer to an account designated by Lender.


 


(C)               In
no event shall the NOI Determination Request be made prior to the commencement of the Conversion Period or less than ninety (90)
days prior to the expiration of the Conversion Period. Borrower may not submit an NOI Determination Request if an Event of Default
has occurred and is continuing at the time of the request or if an Event of Default has occurred at any time within the twelve
(12) month period immediately preceding the date of Borrower’s request. In addition, Borrower may not submit an NOI Determination
Request more than twice in any Loan Year. Borrower shall submit to Lender, within five (5) days after receipt of a request therefor,
all information relating to the operation of the Mortgaged Property required by Lender to determine the Net Operating Income and
Borrower’s compliance.with Section 7 of this Schedule. If Borrower fails to provide such information within such period, Borrower’s
NOI Determination Request shall be deemed canceled (however, such canceled NOI Determination Request shall count as a request
for the Loan Year in which the request was made).


 


(2)          Conversion Eligibility
Determination.


 


(A)               Within
fifteen (15) days after receipt of an NOI Determination Request (or, if Lender requests additional information from Borrower pursuant
to Section 7(b)(2)(B) of this Schedule, within fifteen (15) days after Lender’s receipt of such additional information), Lender
shall determine the Net Operating Income of the Mortgaged Property and the Maximum Fixed Rate to which the Mortgage Loan may be
converted and shall provide Borrower with the NOI Determination Notice.


 


(B)               Lender
shall determine the Net Operating Income for the trailing twelve (12) month period on the basis of the most recently received
quarterly financial statements (as such statements may be adjusted by Lender as necessary to accurately reflect items of income,
operating expenses, ground lease payments, if applicable, and replacement reserves to reflect suitable underwriting) prepared
by Borrower for the Mortgaged Property. In connection with any request by Lender for additional information, Borrower shall have
five (5) days after Borrower’s receipt of such request to provide Lender with such additional information.


 


(C)               Borrower
may not exercise the Conversion Option unless Lender determines that, based upon the Net Operating Income set forth in the NOI
Determination Notice and the Fixed Rate quoted in connection with a Rate Lock Request, the Debt Service Coverage Ratio for the
Mortgaged Property is equal to or greater than the Minimum Conversion Debt Service Coverage Ratio.


 




    	Schedule 3 to Multifamily Loan and
 Security Agreement - Interest Rate and
 Conversion Provisions (SARM)	Form 6103.SARM
	Page 3
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    




 


(3)            Exercise of Conversion
Option; Rate Lock Request.


 


(A)              If,
after receipt of the NOI Determination Notice, Borrower desires to exercise the Conversion Option,
Borrower shall, within fifteen (15) days of Borrower’s receipt of the NOI Determination Notice:


 


(i)                 provide
Lender with a title report for the Mortgaged Property prepared by, or by an agent for, the issuer of the Title Policy, showing
marketable fee simple or leasehold title to the Mortgaged Property (as applicable) to be vested in Borrower, free and clear of
all Liens and other matters affecting title other than the Permitted Encumbrances;


 


(ii)                 pay
to Lender the Good Faith Deposit; and


 


(iii)                 make
a Rate Lock Request.


 


(B)               If the Conversion closes,
Lender shall refund the Good Faith Deposit to Borrower within thirty (30) days after the Conversion Closing Date. If Borrower
pays the Good Faith Deposit but does not timely exercise the Conversion Option and the Fixed Rate is not rate locked, Lender shall
refund the Good Faith Deposit to Borrower within forty-five (45) days after receipt of a written request from Borrower (and the
interest rate shall remain at the Adjustable Rate). If Borrower timely exercises the Conversion Option, but the Conversion is
not consummated for any reason other than a default by Lender in performing its obligations under the Loan Agreement, Borrower
shall forfeit the Good Faith Deposit and (i) if the MBS Investor is not Fannie Mae, shall be fully liable for, and agrees to pay
on demand, any and all loss, costs and/or damages incurred by Lender in connection with Borrower’s failure to consummate the Conversion
as provided herein, including any loss, costs and/or damages incurred by Lender in excess of the Good Faith Deposit, and (ii)
if the MBS Investor is Fannie Mae or if the converted Mortgage Loan is held by Fannie Mae and does not back an MBS, the Good Faith
Deposit shall serve as liquidated damages resulting from failure to consummate the Conversion. Borrower expressly acknowledges
that by electing to convert the interest rate on the Mortgage Loan to the Fixed Rate, and agreeing to the Fixed Rate as provided
herein, Borrower is causing Lender to take a position in the financial markets in reliance thereon, and the failure of Borrower
to convert the interest rate on the Mortgage Loan to the Fixed Rate as provided herein may cause Lender to incur economic damages.


 


(C)               If Borrower desires
to exercise the Conversion Option and has complied with all other requirements of Section 7(d)
of this Schedule, within fifteen (15) days of Borrower’s receipt of the NOI Determination Notice, Borrower shall contact Lender
to initiate a Rate Lock Request. If the Fixed Rate quoted to Borrower is greater than the Maximum Fixed Rate, Borrower shall not
be permitted to accept the quoted Fixed Rate (or exercise its Conversion Option). On or before 5:00 p.m. (Eastern Time) of the
day Borrower accepts the quoted Fixed Rate, Borrower and Lender shall confirm to each other (by letter addressed from Lender to
Borrower, acknowledged and accepted in writing by Borrower and transmitted, in each case, by facsimile or other electronic transmission
acceptable to Lender), (i) the Fixed Rate, (ii) the New Maturity Date (if applicable), (iii) the Conversion Effective Date, (iv)
the new Monthly Debt Service Payment and (v) the Initial Fixed Rate Payment Date.


 




    	Schedule 3 to Multifamily Loan and
 Security Agreement - Interest Rate and
 Conversion Provisions (SARM)	Form 6103.SARM
	Page 4
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    

 


 


		(c)	Amendment
to Multifamily Loan and Security Agreement. 



 


The Conversion
shall be evidenced by the Conversion Amendment.


 


		(d)	Conditions Precedent to
                                         Closing of Conversion.



 


Borrower’s
right to consummate the Conversion and Lender’s obligation to execute and deliver the Conversion Amendment, shall be subject to
satisfaction of the conditions precedent below.


 


(a)           All
representations and warranties of Borrower set forth in the Loan Documents shall be true and correct in all material respects
on and as of the Conversion Closing Date as though made on and as of the Conversion Closing Date.


 


(b)           Borrower
shall have performed or complied with all of its obligations under the Loan Agreement to be performed or complied with on or before
the Conversion Closing Date.


 


(c)           On
the Conversion Closing Date, no Event of Default shall have occurred and be continuing (or any event which, with the giving of
notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing).


 


(d)           On
the Conversion Closing Date, Lender shall have received all of the following, each of which, where applicable, shall be
executed by individuals authorized to do so, shall be dated as of the Closing Date, and shall be in form and substance
acceptable to Lender:


 


(A)           the
Conversion Amendment;


 


(B)           an
endorsement to the Title Policy or a new Title Policy as of the Conversion Closing Date showing that the Security Instrument constitutes
a valid mortgage lien on the Mortgaged Property, with the same lien priority insured by the Title Policy, subject only to the
Permitted Encumbrances;


 


(C)           either
(i) the Survey, redated to a date within fifteen (15) days prior to the Conversion Closing Date showing that there are no Liens
or other matters that have arisen since the date of the Survey other than matters approved in writing by Lender, or (ii) affirmative
coverage in the title insurance endorsement referred to in Section 7(d)(4)(B) that there are no exceptions based upon the results
of a visual inspection of the Mortgaged Property, or the absence of any exception based upon any facts or conditions which have
arisen since the date of the Survey and which would be disclosed by a current survey of the Mortgaged Property;


 




    	Schedule 3 to Multifamily Loan and
 Security Agreement - Interest Rate and
 Conversion Provisions (SARM)	Form 6103.SARM
	Page 5
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    




 


(D)              if
necessary, as determined by Lender, an amendment to the Security Instrument to be recorded in the land records and insured as
a supplement to the Security Instrument to reflect the New Maturity Date;


 


(E)               an
opinion of counsel satisfactory to Lender as to such matters as Lender may reasonably request; and


 


(F)               such
other documents as Lender may reasonably request related to the Loan Agreement, the Conversion Amendment or the transactions contemplated
hereby or thereby.


 


(e)           The
Mortgaged Property shall not have been damaged, destroyed or subject to any condemnation or other taking, in whole or any material
part, and Lender shall have received a certificate of Borrower, dated as of the Conversion Closing Date, to such effect.


 


8.           Property Condition
Assessment.


 


Notwithstanding
the provisions of Section 13.02(a)(3)(A), if the Conversion Option is exercised for any Mortgaged Property other than an “affordable
housing property” (as indicated on the Summary of Loan Terms), and extends the Loan Term, then a new property condition assessment
shall be required in the earlier of (a) the Loan Year that would have been the final Loan Year of the Mortgage Loan had the Conversion
Option not been exercised, or (b) the tenth (10th) Loan Year. -


 




    	Schedule 3 to Multifamily Loan and
 Security Agreement - Interest Rate and
 Conversion Provisions (SARM)	Form 6103.SARM
	Page 6
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    

  


	 	/s/ Initials
	 	Borrower Initials


 




    	Schedule 3 to Multifamily Loan and
 Security Agreement - Interest Rate and
 Conversion Provisions (SARM)	Form 6103.SARM
	Page 7
	Fannie Mae	01-16
	© 2016 Fannie Mae




     


    

 


SCHEDULE 4


TO MULTIFAMILY
LOAN AND SECURITY AGREEMENT


 


Prepayment Premium
Schedule


(1% Prepayment Premium
— ARM, SARM)


 


1.             Defined Terms.


 


All
capitalized terms used but not defined in this Prepayment Premium Schedule shall have the meanings assigned to them in the Loan
Agreement.


 


2.            Prepayment Premium.


 


(a)       Any
Prepayment Premium payable under Section 2.03 (Lockout/Prepayment) of the Loan Agreement shall be equal to the following percentage
of the amount of principal being prepaid at the time of such prepayment, acceleration or application:


 


Prepayment
Lockout Period            5.00%


Second
Loan Year, and each 1.00% Loan


Year
thereafter


 


(b)       Notwithstanding
the provisions of Section 2.03 (Lockout/Prepayment) of the Loan Agreement or anything to the contrary in this Prepayment Premium
Schedule, no Prepayment Premium shall be payable with respect to any prepayment made on or after the last calendar day of the
fourth (4th) month prior to the month in which the Maturity Date occurs.


 




    	 Schedule 4 to Multifamily Loan and 
 Security Agreement (Prepayment Premium
 Schedule — 1% Prepayment Premium — 
 ARM, SARM)
	Form 6104.11
	Page 1 
	Fannie Mae	01-11
	© 2011 Fannie Mae




     


    

  


	 	/s/ Initials
	 	Borrower Initials


 




    	Multifamily Loan and Security Agreement
 (Non-Recourse)	Form 6001.NR
	Page 2
	Schedule 5	01-16	© 2016 Fannie Mae




     


    

 


SCHEDULE
5 TO


MULTIFAMILY LOAN
AND SECURITY AGREEMENT


 


Required
Replacement Schedule


 








 






    	Multifamily Loan and Security Agreement
 (Non-Recourse)	Form 6001.NR
	Page 1
	Schedule 5	01-16	© 2016 Fannie Mae




     


    

 


 


 



    	Multifamily Loan and Security Agreement
 (Non-Recourse)	Form 6001.NR
	Page 2
	Schedule 5	01-16	© 2016 Fannie Mae




     


    

 





SCHEDULE 6 TO


MULTIFAMILY LOAN
AND SECURITY AGREEMENT


 


Required Repair
Schedule


  


	Required
    Item	 	Estimated
    
 Cost	 	Required
    
 Escrow	 	Max.
    Time to 
 Complete
	Repair pool dence mounting coming detached from stucco wall	 	$	0	 	 	$	0	 	 	60 Days
	Have expert inspect natural earth retaining wall for structural integrity/stability	 	$	0	 	 	$	0	 	 	60 Days
	Totals	 	$	0	 	 	$	0	 	 	 



 




    	Multifamily Loan and Security Agreement
 (Non-Recourse)	Form 6001.NR
	Page 1
	Schedule 6	01-16	© 2016 Fannie Mae




     


    

  


	 	/s/ Initials
	 	Borrower Initials


 




    	Multifamily Loan and Security Agreement
 (Non-Recourse)	Form 6001.NR
	Page 2
	Schedule 6	01-16	© 2016 Fannie Mae




     


    

  


SCHEDULE 7 TO


MULTIFAMILY LOAN
AND SECURITY AGREEMENT


 


Exceptions to Representations
and Warranties Schedule


 


NONE


 




    	Multifamily Loan and Security Agreement
 (Non-Recourse)	Form 6001.NR
	Page 1
	Schedule 7	01-16	© 2016 Fannie Mae




     


    




 


	 	/s/ Initials
	 	Borrower Initials


 




    	Multifamily Loan and Security Agreement
 (Non-Recourse)	Form 6001.NR
	Page 2
	Schedule 7	01-16	© 2016 Fannie Mae




     


    

 


EXHIBIT A


 


MODIFICATIONS
TO MULTIFAMILY LOAN AND SECURITY AGREEMENT


(Co-Tenants)


 


This
Exhibit shall only be effective during such time that Borrower is comprised of two (2) or more Co-Tenants.


 


The foregoing Loan Agreement
is hereby modified as follows:


 


1.             Capitalized terms used
and not specifically defined herein have the meanings given to such terms in the Loan Agreement.


 


2.             The Definitions
Schedule is hereby amended by adding the following new definitions in the appropriate alphabetical
order:


 


“Co-Tenant” means,
individually and collectively, all persons, trusts or entities comprising Borrower.


 


“Co-Tenant Representative”
means the Co-Tenant Representative identified on the Summary of Loan Terms.


 


“Initial Bankruptcy
Case(s)” means one or more bankruptcy cases resulting from one or more Co-Tenants filing for relief under the Insolvency
Laws.


 


“Initial Debtor”
means the debtor of an Initial Bankruptcy Case.


 


“Subsequent Bankruptcy
Case” means any bankruptcy case filed by one or more Co-Tenants after an Initial Bankruptcy Case.


 


“Tenancy-in-Common
Agreement” means that certain Tenancy-in-Common Agreement identified on the Summary of Loan Terms.


 


3.             Section 3.02(a) (Personal
Liability of Borrower — Personal Liability Based on Lender’s Loss) of the Loan Agreement
is hereby amended by adding the following provisions to the end thereof:


 


(6)             the
modification, termination or waiver of any provisions under the Tenancy-in-Common Agreement, or the entering into a new agreement
related to the management of the Mortgaged Property, without the prior written consent of Lender; or


 


(7)             the
filing of any action, complaint, petition or other claim to divide the Mortgaged Property, cause the appointment of a receiver
for the Mortgaged Property or compel the sale of the Mortgaged Property.


 


4.             Section
14.01(a) (Events of Default — Automatic Events of Default) of the Loan Agreement is hereby
amended by adding the following provisions to the end thereof:


 




    	 Modifications to Multifamily Loan and
 Security Agreement (Co-Tenants)	Form 6232
	Page 1 
	Fannie Mae	08-13
	© 2013 Fannie Mae




     


    

 


 


(12)           the
filing of any action, complaint, petition or other claim to divide the Mortgaged Property, cause
the appointment of a receiver for the Mortgaged Property or compel the sale of the Mortgaged Property, without Lender’s prior
written consent.


 


5.             Section
15.02(a) (Process of Serving Notice) of the Loan Agreement is hereby amended by adding the following provision to the end thereof:


 


(4)               any
notice to be provided to Borrower under this Loan Agreement shall be provided in accordance with and in the manner set forth
in this Section 15.02 and directed to Co-Tenant Representative. Borrower agrees that any notice so sent shall constitute
notice to Borrower.


 


6.             The following article is hereby added
to the Loan Agreement as Article 16 (Co-Tenants):


 


ARTICLE
16 - CO-TENANTS


 


Section 16.01 Representations
and Warranties.


 


The
representations and warranties made by Borrower to Lender in this Section 16.01 are made as of the Effective Date, and are true
and correct.


 


(a)             No
partition action has been filed, or is currently being threatened, with respect to the Mortgaged Property.


 


(b)             Each
Co-Tenant has executed and delivered the Tenancy-in-Common Agreement and is currently a party thereto.


 


(c)             The
Tenancy-in-Common Agreement is in full force and effect and there are no defaults thereunder, nor has any event occurred that
with the passage of time, the giving of notice or both would result in such a default.


 


Section 16.02 Covenants.


 


(a)             No
Partition, Sale or Ouster.


 


Neither
Borrower nor any Co-Tenant shall file any action, complaint, petition or claim to seek partition or to otherwise divide the Mortgaged
Property, to compel any sale of the Mortgaged Property or to seek ouster of any Co-Tenant. Borrower and each Co-Tenant expressly
waives any and all rights to partition the Mortgaged Property or seek ouster of any Co-Tenant.


 


(b)             Notification
of Default under Tenancy-in-Common Agreement.


 


Borrower
hereby agrees that it will cause Co-Tenant Representative to notify Lender in writing within ten (10) days of a default by one
or more of the parties under the Tenancy-in-Common Agreement.


 




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Section 16.03 Subordination
of the Tenancy-in-Common Agreement.


 


It
is specifically agreed by Borrower and each Co-Tenant that the Tenancy-in-Common Agreement and all rights, remedies and indemnities
benefiting Borrower or each Co-Tenant thereunder, the Mortgaged Property or the ownership or operation thereof
are hereby expressly made fully junior, secondary, subject and subordinate to the rights and remedies of Lender under the Loan
Documents, including any future advances made by Lender. Each Co-Tenant further subordinates and hereby makes junior, secondary
and subject any and all purchase options, rights of first refusal and rights to purchase the Mortgaged Property or any right or
interest therein, whether now owned or hereafter acquired (including, without limitation, any rights arising under the Insolvency
Laws) to the terms and provisions of the Loan Documents. To the extent that any one or more Co-Tenant has or in the future obtains
any lien or similar interest whatsoever in or to the Mortgaged Property, or any right or interest therein, whether now owned or
hereafter acquired, such lien or other similar interest shall be and hereby is waived in its entirety until the Indebtedness is
paid in full. Each Co-Tenant further agrees and covenants that prior to the full and final payment of the Indebtedness and the
written final release and discharge of the Indebtedness by Lender, each Co-Tenant will not pursue any remedies against one another
to which it may be entitled pursuant to the Tenancy-in-Common Agreement or to which it may be entitled at law or in equity without
Lender’s prior written consent, other than the right expressly set forth in the Tenancy-in-Common Agreement to purchase the interest
of another Co-Tenant, to reduce the interest of another Co-Tenant, or (subject to the provisions in Section 16.04 (Bankruptcy)
below) the right to seek contribution from another Co-Tenant.


 


Section 16.04 Bankruptcy.


 


(a)                                       After the occurrence
of a Bankruptcy Event involving any one or more Co-Tenant(s), each Co-Tenant: •


 


(1)             agrees
not to seek the sale of its tenancy-in-common interest separate and apart from any sale of the undivided fee simple interest in
the Mortgaged Property. Each Co-Tenant acknowledges and agrees that the detriment to the interest of each other Co-Tenant outweighs
the benefit to such Co-Tenant.


 


(2)             assigns
to Lender, as additional security for the Indebtedness, its right to reject or ratify the Tenancy-in-Common Agreement under the
Insolvency Laws.


 


(b)                                     Neither Borrower nor
any Co-Tenant shall have any right of, and each hereby waives any claim for, subrogation or
reimbursement against any Co-Tenant or any general partner, member or manager of a Co-Tenant by reason of any payment by Borrower
or by any Co-Tenant of the Indebtedness, whether such right or claim arises at law or in equity or under any contract or statute,
until the Indebtedness has been paid in full and there has expired the maximum possible period thereafter during which any payment
made by Borrower or such Co-Tenant to Lender with respect to the Indebtedness could be deemed a preference under the Insolvency
Laws.


 


(c)                                     If
any payment by a Co-Tenant is held to constitute a preference under the Insolvency Laws, or
if for any other reason Lender is required to refund any sums to a Co-Tenant, such refund shall not constitute a release of any
liability of Borrower under the Note, the Security Instrument or any other Loan Documents. It is the intention of Lender and Borrower
that Borrower’s obligations under the Note, the Security Instrument and any other Loan Documents shall not be discharged except
by Borrower’s performance of such obligations and then only to the extent of such performance.


 




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(d)                                    If, as the result
of one or more Initial Bankruptcy Cases, an Initial Debtor


achieves confirmation of a
plan that impairs the liens granted Lender under the Security Instrument, then each Co-Tenant shall agree as follows:


 


(1)                each
Co-Tenant would be a party-in-interest in the Initial Bankruptcy Case(s);


 


(2)                each
Co-Tenant will bound by the terms of the plan confirmed in the Initial Bankruptcy Case(s);


 


(3)                each
Co-Tenant will receive a benefit by reason of any impairment of Lender’s lien that is authorized by the court in the Initial Bankruptcy
Case;


 


(4)                the
interest of each Co-Tenant in the Mortgaged Property and the terms of the lien impairment will have been adequately represented
by Initial Debtor(s);


 


(5)                the
impairment of the liens was a critical and necessary part of the plan and order confirming the plan issued in the Initial Bankruptcy
Case(s);


 


(6)                Lender
and each Co-Tenant constitute all of the material necessary parties to the Initial Bankruptcy Case(s) and any Subsequent Bankruptcy
Case(s) filed with respect to the Mortgaged Property;


 


(7)                the
confirmation order issued by a United States bankruptcy (or district) court will have been issued by a court of competent jurisdiction;


 


(8)                the
confirmation order in the Initial Bankruptcy Case(s) constitutes a final judgment on the merits;


 


(9)                any
lien impairment request in the Subsequent Bankruptcy Case will be identical in all material respects to the lien impairment claims
made in the Initial Bankruptcy Case(s); and


 


(10)                that
in view of the foregoing agreements, EACH CO-TENANT SHALL CONFIRM IT HAS WAIVED THE RIGHT TO REQUEST BANKRUPTCY RELIEF AFTER THE
CONFIRMATION OF A PLAN IN THE INITIAL BANKRUPTCY CASE(S), AND SHALL FURTHER AGREE IT WILL CONSENT TO ENTRY OF AN ORDER DISMISSING
ANY SUBSEQUENT BANKRUPTCY CASE CONCERNING THE MORTGAGED PROPERTY, AND THAT THE FAILURE OF ONE OR MORE CO-TENANTS TO CONSENT TO
AN ORDER OF DISMISSAL AS REQUESTED BY LENDER IN THE SUBSEQUENT BANKRUPTCY CASE SHALL EVIDENCE “BAD FAITH” ON THE PART
OF THE COTENANTS, AND SUCH FAILURE TO CONSENT SHALL CONSTITUTE ADEQUATE CAUSE FOR DISMISSAL OF THE SUBSEQUENT BANKRUPTCY CASE.


 




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	 	Borrower Initials


 




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EXHIBIT B


 


MODIFICATIONS
TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

(Replacement Reserve — Deposits Partially or Fully Waived)


 


The foregoing Loan Agreement is hereby
modified as follows:


 


1.            Capitalized
terms used and not specifically defined herein have the meanings given to such terms in the Loan Agreement.


 


2.            The
Definitions Schedule is hereby amended by adding the following new definition in the appropriate alphabetical order:


 


“Reduced
Monthly Replacement Reserve Deposit” has the meaning set forth in the Summary of Loan Terms.


 


3.            Section
13.01(b) (Monthly Replacement Reserve Deposits) of the Loan Agreement is hereby amended by adding the following provisions to
the end thereof:


 


(1)            Partial
or Full Waiver of Monthly Replacement Reserve Deposit.


 


Notwithstanding
the foregoing or anything in this Loan Agreement to the contrary, on the Effective Date, Lender has agreed to partially reduce,
defer or fully waive Borrower’s obligation to make full Monthly Replacement Reserve Deposits. Subject to the provisions of Section
13.01(b)(2) (Reinstatement of Monthly Replacement Reserve Deposit), Borrower shall deposit the applicable Reduced Monthly Replacement
Reserve Deposit into the Replacement Reserve Account on each Payment Date.


 


(2)            Reinstatement of
Monthly Replacement Reserve Deposit.


 


In
the event that (A) at any time during the Loan Term Lender provides written notice to Borrower that the Mortgaged Property is
not being maintained in accordance with the requirements set forth in the Loan Documents, or (B) an Event of Default has occurred
and is continuing under any of the Loan Documents, then upon the earlier of (i) the date specified by Lender in such written notice
to Borrower or (ii) the first day of the first calendar month after the occurrence of such Event of Default, Borrower shall commence
paying the full Monthly Replacement Reserve Deposits throughout the remaining Loan Term.


 




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 — Deposits Partially or Fully Waived)
	Form 6220
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	 	/s/ Initials
	 	Borrower Initials


 




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 — Deposits Partially or Fully Waived)
	Form 6220
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EXHIBIT C


 


MODIFICATIONS
TO MULTIFAMILY LOAN AND SECURITY AGREEMENT

(Waiver of Imposition Deposits)


 


The foregoing Loan Agreement is hereby
modified as follows:


 


1.            Capitalized
terms used and not specifically defined herein have the meanings given to such terms in the Loan Agreement.


 


2.            The
Definitions Schedule is hereby amended by adding the following new definitions in the appropriate alphabetical order:


 


“Insurance Impositions”
means the premiums for maintaining all Required Insurance Coverage.


 


“Required
Insurance Coverage” means the insurance coverage required pursuant to Article 9 (Insurance) of the Loan Agreement
and under any other Loan Document.


 


3.            Section
12.02 (Imposition Deposits, Taxes, and Other Charges — Covenants) of the Loan Agreement is hereby amended by adding the
following provisions to the end thereof:


 


(b) .     Conditional
Waiver of Collection of Imposition Deposits.


 


(1)                                    Notwithstanding
anything contained in this Section 12.02 (Imposition Deposits, Taxes, and Other Charges — Covenants)
to the contrary, Lender hereby agrees to waive the collection of Imposition Deposits for Insurance Impositions, provided, that:


 


(A)            Borrower
shall pay such Insurance Impositions directly to the carrier or agent ten (10) days prior to expiration or as necessary to prevent
the Required Insurance Coverage from lapsing due to nonpayment of premiums;


 


(B)            Borrower
shall provide Lender with proof of payment acceptable to Lender of all Insurance Impositions within five (5) days after the date
such Insurance Impositions are paid; and


 


(C)            Borrower
shall cause its insurance agent to provide Lender with such certifications regarding the Required Insurance Coverage as Lender
may request from time to time evidencing that the Insurance Impositions have been paid in a timely manner and that all of the
Required Insurance Coverage is in full force and effect.


 


(2)                                    Lender
reserves the right to require Borrower to deposit the Imposition Deposits with Lender on each
Payment Date for Insurance Impositions in accordance with this Section 12.02 (Imposition Deposits, Taxes, and Other Charges —
Covenants) upon:


 


(A)            Borrower’s failure to pay Insurance Impositions or to provide Lender with proof of payment
of Insurance Impositions as required in this Section 12.02(b) (Conditional Waiver of Collection of Imposition
Deposits);


 




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(B)            Borrower’s
failure to maintain insurance coverage in accordance with the requirements of Article 9 (Insurance);


 


(C)            the
occurrence of any Transfer which is not permitted by the Loan Documents, or any Transfer which requires Lender’s consent; or


 


(D)            the
occurrence of a default under any of the other terms, conditions and covenants set forth in this Loan Agreement or any of the
other Loan Documents.


 


(4)            Except
as specifically provided in this Section 12.02(b) (Conditional Waiver of Collection of Imposition Deposits), the provisions of
Article 9 (Insurance) shall remain in full force and effect.


 




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 Deposits)	Form 6228
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	 	/s/ Initials
	 	Borrower Initials


 




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 Deposits)	Form 6228
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EXHIBIT B to


FIRST AMENDMENT
TO MULTIFAMILY LOAN AND SECURITY AGREEMENT


 


[Modification
to Environmental Indemnity Agreement]


 


		1.	Section 8(b) is modified to remove the
                                         following from the second sentence:



 


and subject
to Section 8(g) below


 




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	 	/s/ Initials
	 	Borrower Initials


 




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 Security Agreement (Multipurpose)	Form 6601
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