Document:

Exhibit 10.12

 

Fox Hill Apartments

 

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT
AGREEMENT

 

This Subordination, Non-Disturbance
And Attornment Agreement (this “Agreement”) dated as of the 26th day of March, 2015, is executed by and among
WALKER & DUNLOP, LLC, a Delaware limited liability company (“Lender”), BR FOX HILLS TIC-1, LLC,
a Delaware limited liability company and BR FOX HILLS TIC-2, LLC, a Delaware limited liability company, as tenants in common
(individually and together, “Landlord”) and COINMACH CORPORATION (“Tenant”).

 

RECITALS:

 

A.           Tenant
has entered into a Lease Agreement dated as of February 22, 2010 (the “Lease”) with Landlord (or predecessor-in-interest
to Landlord), covering certain premises more fully described in the Lease (the “Premises”), which Premises are
a part of the real property located in Austin (Travis County), Texas (the “Mortgaged Property”).

 

B.           Pursuant
to that certain Multifamily Loan and Security Agreement dated as of the date hereof, executed by and between Landlord and Lender
(as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”),
Lender has agreed to make a loan to Landlord in the original principal amount of Twenty-Six Million Seven Hundred Five Thousand
and 00/100 Dollars ($26,705,000.00) (the “Mortgage Loan”), as evidenced by that certain Multifamily Note dated
as of the date hereof, executed by Landlord and made payable to the order of Lender in the amount of the Mortgage Loan (as amended,
restated, replaced, supplemented or otherwise modified from time to time, the “Note”).

 

C.           In
addition to the Loan Agreement, the Mortgage Loan and the Note are also secured by a certain Multifamily Mortgage, Deed
of Trust, or Deed to Secure Debt dated as of the date hereof (as amended, restated, replaced, supplemented or otherwise modified
from time to time, the “Security Instrument”). The Note, the Security Instrument, the Loan Agreement and any
other agreement executed in connection with the Mortgage Loan are referred to collectively as the “Loan Documents.”

 

D.           Tenant
has agreed to the subordination of the Lease to the Security Instrument and the other Loan Documents on the condition that it is
assured of continued occupancy of the Premises under the terms of the Lease and this Agreement.

 

AGREEMENTS:

 

NOW THEREFORE, in consideration
of the mutual covenants in this Agreement and for other valuable consideration, the receipt and sufficiency of which are acknowledged,
Landlord, Lender, and Tenant agree as follows:

 

Section
1.          Recitals.

 

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

 

	Subordination, Non-Disturbance and Attornment Agreement	Form 6415	Page 1
	Fannie Mae	09-13	© 2013 Fannie Mae

 

    	 

    	 

    

 

Section
2.          Defined Terms.

 

The following terms, when
used in this Agreement, shall have the following meanings:

 

“Foreclosure Event” means
(a) the foreclosure of the Security Instrument or any other sale by Lender or any trustee for Lender pursuant to the Security
Instrument or any other Loan Document; (b) any other exercise by Lender of its rights and remedies as holder of the Mortgage
Loan or the Security Instrument as a result of which Lender or any other Successor Landlord acquires title to, or the right of
possession of, the Mortgaged Property; or (c) acquisition of title to the Mortgaged Property in lieu of foreclosure or other
conveyance of Landlord’s interest in the Mortgaged Property in lieu of any of the foregoing.

 

“Subsequent Sale” means
the first sale of the Mortgaged Property by Lender, Lender’s nominee or any trustee for Lender after a Foreclosure Event.

 

“Successor Landlord” means
any party that becomes owner of the Mortgaged Property as the result of a Foreclosure Event or a Subsequent Sale, including, without
limitation, Lender and any nominee of Lender.

 

Section
3.          Lease Subordination.

 

The Lease and all estates,
rights, options, liens, and charges therein contained or created under the Lease are and shall be subject and subordinate to the
lien and effect of the Security Instrument and the other Loan Documents insofar as it affects the real and personal property of
which the Premises form a part, and to all renewals, modifications, consolidations, replacements, and extensions thereof, and to
all advances made or to be made thereunder, to the full extent of amounts secured thereby and interest thereon. Without limiting
the generality of the foregoing subordination provision, Tenant hereby agrees that any of its right, title and interest in and
to insurance proceeds and condemnation awards (or other similar awards arising from eminent domain proceedings) with respect to
damage to or the condemnation (or similar taking) of any of the Mortgaged Property, shall be subject and subordinate to Lender’s
right, title and interest in and to such proceeds and awards.

 

Section
4.          Default.

 

Lender agrees that, so
long as Tenant is not then in default under any of the terms, covenants, or conditions of the Lease or this Agreement, (a) Tenant
shall not be named or joined as a party in any suit, action or proceeding for the foreclosure of the Security Instrument or the
enforcement of any rights of Lender under the Security Instrument (unless Tenant is a necessary party under applicable law), and
(b) in the event that Lender becomes Successor Landlord, Lender agrees not to affect, terminate or disturb Tenant’s
right to quiet enjoyment and possession of the Premises under the terms of the Lease or any of Tenant’s other rights under
the Lease in the exercise of Lender’s rights under the Security Instrument and the other Loan Documents.

 

	Subordination, Non-Disturbance and Attornment Agreement	Form 6415	Page 2
	Fannie Mae	09-13	© 2013 Fannie Mae

 

    	 

    	 

    

 

Section
5.          Possession of the Mortgaged Property.

 

In the event that a Successor
Landlord acquires title to or the right to possession of the Mortgaged Property upon a Foreclosure Event or a Subsequent Sale,
the Successor Landlord and Tenant hereby agree to recognize one another as landlord and tenant, respectively, under the Lease and
to be bound to one another under all of the terms, covenants, and conditions of the Lease, Successor Landlord shall assume all
of the obligations of Landlord under the Lease subject to the provisions of this Agreement and Tenant agrees to attorn to such
Successor Landlord and to recognize such Successor Landlord as “landlord” under the Lease without any additional documentation
to effect such attornment (provided, however, if applicable law shall require additional documentation at the time Lender exercises
its remedies then Tenant shall execute such additional documents evidencing such attornment as may be required by applicable law).
Accordingly, from and after such event, Successor Landlord and Tenant shall have the same remedies against each other for the breach
of an agreement contained in the Lease as Tenant and Landlord had before Successor Landlord succeeded to the interest of Landlord;
provided, however, that Successor Landlord shall not be:

 

(a)          liable
for any act or omission of any prior landlord (including Landlord);

 

(b)          subject
to any offsets or defenses that Tenant might have against any prior landlord (including Landlord);

 

(c)          bound
by any rent or additional rent that Tenant might have paid for more than one (1) month in advance to any prior landlord (including
Landlord);

 

(d)          bound
by any amendment or modification of the Lease made after the date of this Agreement without Lender’s prior written consent;

 

(e)          liable
for return of any security deposit not actually paid over to such Successor Landlord by the Landlord;

 

(f)          bound
by, or liable for, any breach of any representation or warranty or indemnity agreement contained in the Lease or otherwise made
by any prior landlord (including Landlord); or

 

(g)          personally
liable for the payment of any claim hereunder or for the performance of any obligation, agreement, contribution, or term to be
performed or observed by Successor Landlord hereunder or under the Security Instrument, the Loan Agreement, or any other agreement
or document securing or collateral to the Security Instrument, such Successor Landlord’s liability being limited in all cases
to its interest in the Mortgaged Property.

 

Section
6.          Delivery of Documents.

 

Although the foregoing
provisions of this Agreement shall be self-operative, Tenant agrees to execute and deliver to Successor Landlord, such other instrument
or instruments as Successor Landlord shall from time to time request in order to confirm such provision.

 

Section
7.          Representations, Warranties, Covenants and Agreements.

 

Tenant hereby warrants
and represents, covenants, and agrees to and with Lender:

 

(a)         that
the Lease constitutes the entire agreement between Tenant and Landlord with respect to the Premises and there are no other agreements,
written or verbal, governing the tenancy of Tenant with respect to the Premises;

 

(b)         not
to alter or modify the Lease in any respect without prior written consent of Lender;

 

(c)         to
deliver to Lender in accordance with Section 11 a duplicate of each notice of default delivered to Landlord at the same time as
such notice is given to Landlord;

 

	Subordination, Non-Disturbance and Attornment Agreement	Form 6415	Page 3
	Fannie Mae	09-13	© 2013 Fannie Mae

 

    	 

    	 

    

 

(d)          that
Tenant is now the sole owner of the leasehold estate created by the Lease and shall not hereafter transfer the Lease except as
permitted by the terms thereof;

 

(e)          not
to seek to terminate the Lease by reason of any default of Landlord without prior written notice thereof to Lender and the lapse
thereafter of such time as under the Lease was offered to Landlord in which to remedy the default, and the lapse of thirty (30)
days after the expiration of such time as Landlord was permitted to cure such default; provided, however, that with respect to
any default of Landlord under the Lease which cannot be remedied within such time, if Lender commences to cure such default within
such time and thereafter diligently proceeds with such efforts and pursues the same to completion, Lender shall have such time
as is reasonably necessary to complete curing such default. Notwithstanding the foregoing, in the event either Lender or Landlord
do not cure or commence curing such default within the time provided to Landlord under the Lease and the nature of the default
threatens Tenant’s ability to conduct its daily business or threatens to materially or adversely damage Tenant’s property
located on the Premises, Tenant shall be permitted to exercise its right under the Lease;

 

(f)          not
to pay any rent or other sums due or to become due under the Lease more than thirty (30) days in advance of the date on which
the same are due or to become due under the Lease; and

 

(g)          to
certify promptly in writing to Lender in connection with any proposed assignment of the Loan Agreement, whether or not any default
on the part of Landlord then exists under the Lease.

 

Section
8.          Assignment.

 

Tenant further acknowledges
that Landlord has collaterally assigned to Lender the Lease and the rents and other amounts, including lease termination fees,
if any, due and payable under such leases. In connection therewith, Tenant agrees that, upon receipt by Tenant of a notice from
Lender of the occurrence of a default by Landlord under such assignment and a demand by Lender for direct payment to Lender of
the rents due under the Lease, Tenant will honor such demand and make all subsequent rent payments directly to Lender. Landlord
hereby agrees that any rents, fees or other amounts paid by Tenant to or as directed by Lender pursuant to this section shall be
deemed to have been duly and validly paid by Tenant under the Lease, and any such amounts shall be credited against Tenant’s
obligations under the Lease as if the same were paid directly to Landlord. Landlord and Tenant each agree that Tenant shall have
no obligation to determine whether Landlord is in default under such assignment, and Tenant may rely on such notice and direction
from Lender without any duty to investigate.

 

Section
9.          Successors and Assigns.

 

This Agreement shall inure
to the benefit of and be binding upon the parties hereto and their successors and assigns.

 

Section
10.         Trustee.

 

If the Security Instrument
is a deed of trust, then, this Agreement is entered into by one or more trustees acting on behalf of Lender in his, her or its
capacity as trustee and not individually, then Tenant agrees that neither such trustees, nor any of its officers, employees, agents,
or shareholders shall be personally liable under this Agreement.

 

	Subordination, Non-Disturbance and Attornment Agreement	Form 6415	Page 4
	Fannie Mae	09-13	© 2013 Fannie Mae

 

    	 

    	 

    

 

Section
11.         Notice.

 

(a)          All
notices under this Agreement 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, or

 

(C)         sent
by overnight express courier;

 

(2)         addressed
to the intended recipient at its respective address set forth at the end of this Agreement; and

 

(3)         deemed
given 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)          Any
party to this Agreement may change the address to which notices intended for it are to be directed by means of notice given to
the other party in accordance with this Section 11.

 

(c)          Any
required notice under this Agreement which does not specify how notices are to be given shall be given in accordance with this
Section 11.

 

Section
12.         Counterparts.

 

This Agreement may be executed
in any number of counterparts, each of which shall be considered an original for all purposes; provided, however, that all such
counterparts shall constitute one and the same instrument.

 

Section
13.         Governing Law; Venue and Consent to Jurisdiction.

 

(a)         Governing
Law.

 

This Agreement shall be
governed by the laws of the jurisdiction in which the Mortgaged Property is located (the “Property Jurisdiction”),
without regard to the application of choice of law principles.

 

(b)         Venue;
Consent to Jurisdiction.

 

Any controversy arising
under or in relation to this Agreement 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 Agreement. Tenant 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.

 

	Subordination, Non-Disturbance and Attornment Agreement	Form 6415	Page 5
	Fannie Mae	09-13	© 2013 Fannie Mae

 

    	 

    	 

    

 

Section
14.         Severability; Amendments.

 

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

 

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

 

[Remainder of Page Intentionally Blank]

 

	Subordination, Non-Disturbance and Attornment Agreement	Form 6415	Page 6
	Fannie Mae	09-13	© 2013 Fannie Mae

 

    	 

    	 

    

 

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

 

	 	TENANT:
	 	 
	 	 	COINMACH CORPORATION, a Delaware corporation
	 	 	 
	 	By: 	/s/ Melissa John
	 	 	Name: Melissa John
	 	 	Title: Senior Corporate Counsel

 

	 	Address:	Coinmach Corporation
	 	 	404 Wyman Street, Suite 400
	 	 	Waltham, MA 02451
	 	 	Attn: Legal Department

 

	COMMONWEALTH OF MASSACHUSETTS	)
	 	)
	COUNTY OF MIDDLESEX	)

 

On this  18  day
of March, 2015, before me, the undersigned notary public, personally appeared Melissa John, Senior Corporate Counsel of Coinmach
Corporation, a Delaware corporation, who is personally known to me, and who acknowledged to me that she signed this document voluntarily
for its stated purpose, on behalf of the corporation.

 

	 	/s/ Thomas Bladek
	 	Name: Thomas Bladek
	 	Notary Public
	 	 
	 	My Commission Expires February 27, 2020

 

THOMAS R. BLADEK 

NOTARY PUBLIC

COMMONWEALTH OF MASSACHUSETTS

My Commission Expires 

February 27, 2020

 

	Subordination, Non-Disturbance and Attornment Agreement	Form 6415	Page 7
	Fannie Mae	09-13	© 2013 Fannie Mae

 

    	 

    	 

    

 

	 	LANDLORD:
	 	 
	 	BR FOX HILLS TIC-1, LLC, a Delaware limited liability company
	 	 
	 	By:	23Hundred, LLC, a Delaware limited liability company, its sole member

 

	 	 	By:	/s/ Jordan Ruddy
	 	 	 	Name: Jordan Ruddy
	 	 	 	Title: Authorized Signatory

 

	 	Address:	c/o Bluerock Real Estate, L.L.C.
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, New York 10019

 

STATE OF New York, New York County
ss:

 

BEFORE ME, the undersigned,
a Notary Public in and for said County and State, on this day personally appeared Jordan Ruddy, known to me to be the Authorized
Signatory of 23Hundred, LLC, a Delaware limited liability company, sole member of BR Fox Hills TIC-1, LLC, the limited liability
company that executed the foregoing instrument, known to me to be the person whose name is subscribed to the foregoing instrument,
and acknowledged to me that the same was the act of the said limited liability company, and that he/she executed the same as the
act of such limited liability company for the purposes and consideration therein expressed and in the capacity therein stated.

 

GIVEN UNDER MY HAND AND
SEAL OF OFFICE this 10th day of March, 2015        .

 

DALE POZZI

NOTARY PUBLIC –STATE OF NEW
YORK

No. 01P06275397

Qualified in New York County

My Commission Expires January 28,
2017

 

	 	/s/ Dale Pozzi
	 	Notary Public in and for New York County, New York

 

My Commission Expires:______________

 

	Subordination, Non-Disturbance and Attornment Agreement	Form 6415	Page 8
	Fannie Mae	09-13	© 2013 Fannie Mae

 

    	 

    	 

    

 

	 	LANDLORD:
	 	 
	 	BR FOX HILLS TIC-2, LLC, a Delaware limited liability company

 

	 	By:	Bell BR Waterford Crossing JV, LLC, a Delaware limited liability company, its sole member

 

	 	 	By:	/s/ Jordan Ruddy
	 	 	 	Name: Jordan Ruddy
	 	 	 	Title: Authorized Signatory

 

	 	Address:	c/o Bluerock Real Estate, L.L.C.
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, New York 10019

 

STATE OF New York, New York County
ss:

 

BEFORE ME, the undersigned,
a Notary Public in and for said County and State, on this day personally appeared Jordan Ruddy, known to me to be the Authorized
Signatory of Bell BR Waterford Crossing JV, LLC, a Delaware limited liability company, sole member of BR Fox Hills TIC-2, LLC,
the limited liability company that executed the foregoing instrument, known to me to be the person whose name is subscribed to
the foregoing instrument, and acknowledged to me that the same was the act of the said limited liability company, and that he/she
executed the same as the act of such limited liability company for the purposes and consideration therein expressed and in the
capacity therein stated.

 

GIVEN UNDER MY HAND
AND SEAL OF OFFICE this 10th day of March, 2015         .

 

DALE POZZI

NOTARY PUBLIC –STATE OF NEW
YORK

No. 01P06275397

Qualified in New York County

My Commission Expires January 28,
2017

 

	 	/s/ Dale Pozzi
	 	Notary Public in and for New York County, New York

 

My Commission Expires:______________

 

	Subordination, Non-Disturbance and Attornment Agreement	Form 6415	Page 9
	Fannie Mae	09-13	© 2013 Fannie Mae

 

    	 

    	 

    

 

	 	LENDER:
	 	 
	 	WALKER & DUNLOP, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Loretta Webb
	 	 	Loretta Webb
	 	 	Vice President

 

	 	Address:	7501 Wisconsin Avenue, Suite 1200E
	 	 	Bethesda, Maryland 20814

 

STATE OF Texas   ,
Dallas    County ss:

 

BEFORE ME, the undersigned,
a Notary Public in and for said County and State, on this day personally appeared Loretta Webb, Vice President of Walker &
Dunlop, LLC, a Delaware limited liability company, the limited liability company that executed the foregoing instrument, known
to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of
the said limited liability company, and that he/she executed the same as the act of such limited liability company for the purposes
and consideration therein expressed and in the capacity therein stated.

 

GIVEN UNDER MY HAND AND
SEAL OF OFFICE this 10 day of March, 2015.

 

EVELYN V. CEPAK 

NOTARY PUBLIC –STATE OF TEXAS

My Commission Expires

August 22, 2015

 

	 	/s/ Evelyn V. Cepak
	 	Notary Public in and for _______________ County, ______________

 

My Commission Expires:_________________

 

	Subordination, Non-Disturbance and Attornment Agreement	Form 6415	Page 10
	Fannie Mae	09-13	© 2013 Fannie MaeExhibit 10.13

 

Fox Hill Apartments

 

ENVIRONMENTAL INDEMNITY AGREEMENT

 

This ENVIRONMENTAL INDEMNITY
AGREEMENT (this “Agreement”), dated as of March 26, 2015, is executed by BR FOX HILLS TIC-1, LLC, a Delaware
limited liability company and BR FOX HILLS TIC-2, LLC, a Delaware limited liability company, as tenants in common (individually
and together, “Borrower”), to and for the benefit of WALKER & DUNLOP, LLC, a Delaware limited liability
company (“Lender”).

 

RECITALS:

 

A.           Borrower
is the owner of the real property more particularly described on Exhibit A attached hereto and made a part hereof (the
“Mortgaged Property”).

 

B.           Pursuant
to that certain Multifamily Loan and Security Agreement dated as of the date hereof, by and between Borrower and Lender (as amended,
restated, replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”), Lender is making
a loan to Borrower in the original principal amount of Twenty-Six Million Seven Hundred Five Thousand and 00/100 Dollars ($26,705,000.00)
(the “Mortgage Loan”), as evidenced by that certain Multifamily Note dated as of the date hereof, executed by
Borrower and made payable to the order of Lender in the amount of the Mortgage Loan (as amended, restated, replaced, supplemented
or otherwise modified from time to time, the “Note”).

 

C.           The
Mortgage Loan is evidenced by the Note issued pursuant to the Loan Agreement and is secured by, among other things, the Security
Instrument and the Loan Agreement.

 

D.           As
a condition to the making of the Mortgage Loan to Borrower, Lender requires Borrower to deliver this Agreement.

 

AGREEMENTS:

 

NOW, THEREFORE, for and
in consideration of the foregoing and for other good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged, Borrower agrees as follows:

 

1.            Recitals.

 

The recitals set forth
above are true and correct and are hereby incorporated by reference.

 

2.           Defined
Terms.

 

All capitalized terms used
but not defined in this Agreement shall have the meanings assigned to them in the Loan Agreement. As used in this Agreement, the
following terms shall have the following meanings:

 

“Environmental Inspections”
means environmental inspections, reports, tests, investigations, studies, audits, reviews or other analyses (including those related
to Significant Mold) with respect to the Mortgaged Property.

 

	Environmental Indemnity Agreement	Form 6085	Page 1
	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

“Environmental Laws” means
(a) all present and future federal, state and local laws, ordinances, regulations, standards, rules, policies and other governmental
requirements, administrative rulings, court judgments and decrees, and all amendments thereto, relating to pollution or protection
of human health, wildlife, wetlands, natural resources or the environment (including ambient air, surface water, ground water,
land surface or subsurface strata) including such laws governing or regulating the use, generation, storage, removal, remediation,
recovery, treatment, handling, transport, disposal, control, release, discharge of, or exposure to, Hazardous Materials. 
Environmental Laws include the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601,
et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., the Toxic Substances
Control Act, 15 U.S.C. Section 2601, et seq., the Federal Water Pollution Control Act, 33 U.S.C. Section 1251,
et seq., the Hazardous Materials Transportation Act, 49 U.S.C. Section 5101, et seq., the Clean Air Act,
42 U.S.C. Section 7401, et seq., the Safe Drinking Water Act, 42 U.S.C. Section 300f, et seq.,
the Occupational Safety and Health Act, 29 U.S.C. Chapter 15, et seq., the Oil Pollution Act of 1990, 33 U.S.C.
Section 2701, et seq., the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Section 136, et
seq., and the River and Harbors Appropriation Act, 33 U.S.C. Section 403, et seq., and their state and local
analogs, as any such statutes may be amended, restated, modified, or supplemented from time to time, and (b) all voluntary cleanup
programs and/or brownfields programs under federal, state or local law, as may be amended, restated, modified, or supplemented
from time to time.

 

“Environmental Permit” means
any permit, license, agreement (including any agreement or undertaking pursuant to a voluntary cleanup program and/or a brownfields
program) or other authorization issued under any Environmental Law with respect to any activities or businesses conducted on or
in relation to the Mortgaged Property.

 

“Hazardous Materials” means
any substance, chemical, material or waste now or in the future defined as a “hazardous substance,” “hazardous
material,” “hazardous waste,” “toxic substance,” “toxic pollutant,” “contaminant”
or “pollutant” within the meaning of or regulated or addressed under any Environmental Law. Without limiting the generality
of the foregoing, Hazardous Materials includes: Significant Mold; petroleum and petroleum products and compounds containing them
or derived from them, including natural gas, gasoline, diesel fuel, oil and other fuels and petroleum products or fractions thereof;
radon; carcinogenic materials; explosives; flammable materials; infectious materials; corrosive materials; mutagenic materials;
radioactive materials; polychlorinated biphenyls (PCBs) and compounds containing them; lead and lead-based paint; asbestos or asbestos-containing
materials in any form that is or could become friable; underground or above-ground storage tanks, whether empty or containing any
substance; pipelines constructed for the purpose of transporting Hazardous Materials, whether empty or containing any substance;
any substance the presence of which on, under or about the Mortgaged Property is regulated or prohibited by any Governmental Authority;
any substance that is designated, classified or regulated pursuant to any Environmental Law; and any medical products or devices,
including those materials defined as “medical waste” or “biological waste” under relevant statutes or regulations
pertaining to any Environmental Law.

 

“Indemnitees” means, collectively:

 

(a)          Lender;

 

(b)          any
prior owner or holder of the Note;

 

(c)          the
Loan Servicer;

 

(d)          any
prior Loan Servicer;

 

	Environmental Indemnity Agreement	Form 6085	Page 2
	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

(e)          the
officers, directors, shareholders, partners, managers, members, employees and trustees of any of the foregoing; and

 

(f)          the
heirs, legal representatives, successors and assigns of each of the foregoing.

 

“O&M Plan” means a written
plan, document, or agreement containing ongoing operating, maintenance, or monitoring actions for the Mortgaged Property or Improvements
thereon.

 

“Prohibited Activities or Conditions”
means any of the following:

 

(a)          the
presence, use, generation, release, treatment, processing, storage, handling or disposal of any Hazardous Materials on, about or
under the Mortgaged Property or any other property owned, leased or otherwise controlled by Borrower, Guarantor, Key Principal
or any Borrower Affiliate that is adjacent to the Mortgaged Property or which impacts the Mortgaged Property;

 

(b)          the
transportation of any Hazardous Materials to, from or across the Mortgaged Property;

 

(c)          any
Remedial Work at, about or under the Mortgaged Property that has not been fully conducted in accordance with an O&M Plan approved
in writing by Lender;

 

(d)          any
activity on the Mortgaged Property that requires an Environmental Permit or other written authorization under Environmental Laws
without Lender’s prior written consent;

 

(e)          any
occurrence or condition on the Mortgaged Property or any other property owned, leased or otherwise controlled by Borrower, Guarantor,
Key Principal or any Borrower Affiliate that is adjacent to the Mortgaged Property, which occurrence or condition is or is expected
to be in violation of or noncompliance with Environmental Laws, or in violation of or noncompliance with the terms of any Environmental
Permit; or

 

(f)          any
activities on the Mortgaged Property that directly or indirectly result in other property (whether adjacent to the Mortgaged Property
or otherwise) being contaminated with Hazardous Materials or which causes such other property to be in violation of or noncompliance
with Environmental Laws.

 

Provided, however, excluded from this definition
shall be the safe and lawful use and storage of:

 

(1)         pre-packaged
supplies, cleaning materials and petroleum products in such quantities and types as are customarily used for residential purposes
and in the operation and maintenance of comparable multifamily properties so long as all of the foregoing are used, stored, handled,
transported and disposed of in compliance with Environmental Laws;

 

(2)         cleaning
materials, personal grooming items and other items sold in pre-packaged containers for consumer use in such quantities and types
as are customarily found in comparable multifamily properties and which are used by tenants and occupants of residential dwelling
units in the Mortgaged Property;

 

(3)         petroleum
products used in the operation and maintenance of motor vehicles from time to time located on the Mortgaged Property’s parking
areas, in such quantities and types as are customarily used in the operation and maintenance of comparable multifamily properties
and so long as all of the foregoing are used, stored, handled, transported and disposed of in compliance with Environmental Laws;

 

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(4)         petroleum
products stored in above-ground and underground storage tanks, so long as the existence of such above-ground and underground storage
tanks has been previously disclosed by Borrower to Lender in writing and any such tank complies with and at all times continues
to comply with all requirements of Environmental Laws; and

 

(5)         natural
gas when transported and used for residential purposes in combustion appliances.

 

“Remedial Work” means any
investigation, site monitoring, containment, abatement, clean-up, removal, restoration or other remedial work in connection with
any Significant Mold, Environmental Laws, or order of or agreement with any Governmental Authority that has or acquires jurisdiction
over the Mortgaged Property, or the use, operation or improvement of the Mortgaged Property under any Environmental Law or as recommended
in writing by an environmental professional, certified industrial hygienist or person with similar qualifications with respect
to Significant Mold.

 

“Significant Mold” means
any mold, fungus, bacterial, viral, or microbial matter or pathogenic organisms at, in or about the Mortgaged Property of a type
or quantity that:

 

(a)          results
in, or should reasonably result in, Remedial Work or a significant risk to human health or the environment as determined by a written
analysis prepared by an environmental professional, certified industrial hygienist or person with similar qualifications reasonably
acceptable to Lender;

 

(b)          is
required or recommended to be addressed pursuant to Environmental Law, or written recommendation of an environmental professional,
certified industrial hygienist or person with similar qualifications; or

 

(c)          would
materially and negatively impact the value of the Mortgaged Property.

 

3.           Environmental
Representations and Warranties.

 

Borrower represents and
warrants to Lender that as of the Effective Date, except as previously disclosed by Borrower to Lender in writing or as set forth
in any Environmental Inspection performed with respect to the origination of the Mortgage Loan dated prior to the Effective Date:

 

(a)          neither
Borrower nor any Borrower Affiliates are in possession of any Environmental Inspections (or any environmental inspections of any
other property owned, leased or otherwise controlled by Borrower or Borrower Affiliate that is adjacent to the Mortgaged Property)
that have not been provided to Lender, nor have any Environmental Inspections (or any environmental inspections of any other property
owned, leased or otherwise controlled by Borrower or Borrower Affiliate that is adjacent to the Mortgaged Property) been conducted
by or on behalf of Borrower that have not been provided to Lender;

 

(b)          Borrower
has not at any time engaged in, caused or permitted any Prohibited Activities or Conditions other than Prohibited Activities or
Conditions that are the subject of an O&M Plan approved in writing by Lender;

 

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(c)          Guarantor
has not at any time engaged in, caused or permitted any Prohibited Activities or Conditions with respect to the Mortgaged Property
or any adjacent property owned by Borrower, Guarantor, Key Principal or any Borrower Affiliate;

 

(d)          to
Borrower’s knowledge, no Prohibited Activities or Conditions exist or have existed on the Mortgaged Property or on any adjacent
property owned, leased or otherwise controlled by Borrower, Guarantor, Key Principal or any Borrower Affiliate;

 

(e)          the
Mortgaged Property does not now contain any above-ground or underground storage tanks, and, to Borrower’s knowledge, the
Mortgaged Property has not contained any above-ground or underground storage tanks in the past. If there is or was any storage
tank located on the Mortgaged Property which has been previously disclosed by Borrower to Lender in writing or in any Environmental
Inspection, that tank complies with, or has been removed in accordance with, all requirements of Environmental Laws;

 

(f)          Borrower
has complied with all Environmental Laws, including all requirements for notification regarding the presence of or any releases
of Hazardous Materials. Without limiting the generality of the foregoing, Borrower has obtained all Environmental Permits required
for the operation of the Mortgaged Property in accordance with Environmental Laws now in effect, Borrower has disclosed all such
Environmental Permits to Lender, and all such Environmental Permits are in full force and effect;

 

(g)          to
Borrower’s knowledge, no event has occurred with respect to the Mortgaged Property that constitutes, or with the passing
of time or the giving of notice would constitute, noncompliance with the terms of any Environmental Permit;

 

(h)          there
are no actions, suits, claims, orders, proceedings pending or, to Borrower’s knowledge, threatened that involve the Mortgaged
Property and allege, arise out of or relate to any Prohibited Activity or Condition; and

 

(i)          Borrower
has not received any written complaint, order, notice of violation or other communication from any Governmental Authority with
regard to air emissions, water discharges, noise emissions or Hazardous Materials, or any other environmental, health or safety
matters affecting the Mortgaged Property or any other property owned, leased or otherwise controlled by Borrower, Guarantor, Key
Principal or any Borrower Affiliate that is adjacent to the Mortgaged Property.

 

4.           Environmental
Covenants.

 

(a)          Borrower
shall not engage in, cause or permit any Prohibited Activities or Conditions other than Prohibited Activities or Conditions that
are the subject of an O&M Plan approved in writing by Lender so long as Borrower remains in full compliance therewith.

 

(b)          Borrower
shall take all commercially reasonable actions (including the inclusion of appropriate provisions in any Leases executed after
the date of this Agreement) to prevent its employees, agents and contractors, and all tenants and other occupants from causing
or permitting any Prohibited Activities or Conditions. Borrower shall not lease or allow the sublease or use of all or any portion
of the Mortgaged Property to any tenant or subtenant for nonresidential use by any user that, in the ordinary course of its business,
would cause or permit any Prohibited Activity or Condition.

 

(c)          Borrower
shall not permit Guarantor to engage in, cause or permit any Prohibited Activities or Conditions with respect to any property that
is adjacent to the Mortgaged Property that is owned, leased or otherwise controlled by Borrower, Guarantor, Key Principal or any
Borrower Affiliate.

 

	Environmental Indemnity Agreement	Form 6085	Page 5
	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

(d)          Lender
shall have the right to require the establishment of, monitor and review an O&M Plan with respect to Hazardous Materials on
the Mortgaged Property or any other property owned, leased or otherwise controlled by Borrower, Guarantor, Key Principal or any
Borrower Affiliate that is adjacent to the Mortgaged Property. If an O&M Plan has been established, Borrower and its employees
shall comply in a timely manner with, and shall use all commercially reasonable efforts to cause all agents and contractors of
Borrower and any other persons present on the Mortgaged Property to comply with, the O&M Plan. All costs of performance of
Borrower’s obligations under any O&M Plan shall be paid by Borrower, and Lender’s reasonable out-of-pocket costs
incurred in connection with the monitoring and review of the O&M Plan and Borrower’s performance shall be paid by Borrower
within ten (10) days of demand by Lender. Any such out-of-pocket costs of Lender which Borrower fails to pay promptly shall
become an additional part of the Indebtedness as provided in the Security Instrument.

 

(e)          Borrower
shall comply with all Environmental Laws applicable to the Mortgaged Property, including (1) all requirements for notification
regarding the presence of or any releases of Hazardous Materials, and (2) all requirements governing the presence or removal of
any above-ground or underground storage tank located on the Mortgaged Property. Without limiting the generality of the previous
sentence, Borrower shall obtain and maintain all Environmental Permits required by Environmental Laws, shall comply with all conditions
of such Environmental Permits and all such Environmental Permits shall be kept in full force and effect.

 

(f)          Borrower
shall promptly notify Lender in writing upon the occurrence of any of the following events:

 

(1)         Borrower’s
discovery of any Prohibited Activity or Condition;

 

(2)         any
plans to conduct or requirements to conduct any Remedial Work;

 

(3)         Borrower’s
receipt of notice of any action, suit, claim, proceeding, order, notice of violation or other communication from any property management
agents, Governmental Authority or other Person with regard to present or future alleged Prohibited Activities or Conditions or
any other environmental, health or safety matters affecting the Mortgaged Property or any other property owned, leased or otherwise
controlled by Borrower, Guarantor, Key Principal or any Borrower Affiliate that is adjacent to the Mortgaged Property; and

 

(4)         any
representation or warranty in Section 3 of this Agreement was untrue as of the date of this Agreement, or Borrower’s
breach of any of its obligations under this Section 4.

 

Any such notice given by Borrower shall not
relieve Borrower of, or result in a waiver of, any obligation under this Agreement, the Note or any other Loan Document.

 

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	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

5.           Inspections.

 

Lender shall have the right
to cause to be undertaken and thereafter obtain any Environmental Inspections in connection with any Foreclosure Event, or as a
condition of Lender’s consent to any Transfer, or required by Lender following a reasonable determination by Lender that
Prohibited Activities or Conditions may exist. Borrower shall pay within ten (10) days after written demand from Lender the
reasonable costs of any Environmental Inspections required by Lender in accordance with this Section 5. Any such costs incurred
by Lender (including the fees and out-of-pocket costs of attorneys and technical consultants whether incurred in connection with
any judicial or administrative process or otherwise) which Borrower fails to pay promptly after notice and request by Lender shall
become an additional part of the Indebtedness as provided in the Security Instrument. The results of all Environmental Inspections
made by Lender shall at all times remain the property of Lender and Lender shall have no obligation to disclose or otherwise make
available to Borrower or any other party such results or any other information obtained by Lender in connection with its Environmental
Inspections; provided, however, if Borrower reimbursed Lender for the cost of such Environmental Inspections, upon request by Borrower,
Lender shall provide a copy of such Environmental Inspections to Borrower. Lender hereby reserves the right, and Borrower hereby
expressly authorizes Lender, to make available to any party, including any prospective bidder at a foreclosure sale of the Mortgaged
Property, the results of any Environmental Inspections made by Lender or Borrower with respect to the Mortgaged Property. Borrower
consents to Lender notifying any party (either as part of a notice of sale or otherwise) of the results of any Environmental Inspections.
Borrower acknowledges that Lender cannot control or otherwise assure the truthfulness or accuracy of the results of any Environmental
Inspections and that the release of such results to prospective bidders at a foreclosure sale of the Mortgaged Property may have
a material and adverse effect upon the amount which a party may bid at such sale. Borrower agrees that Lender shall have no liability
whatsoever as a result of delivering the results of any Environmental Inspections to any third party, and Borrower hereby releases
and forever discharges Lender from any and all actions, suits, claims, proceedings, orders, damages or causes of action, arising
out of, connected with or incidental to conducting any such Environmental Inspections or providing the results of the same or delivering
the same to any person or entity.

 

6.           Remedial
Work.

 

If any Remedial Work is
contemplated, planned or undertaken at or about the Mortgaged Property or is (a) necessary to comply with or required by any Environmental
Law or order (that has not been stayed on appeal) of any Governmental Authority that has or acquires jurisdiction over the Mortgaged
Property or the use, operation or improvement of the Mortgaged Property under any Environmental Law or order, or (b) required by
Lender based on written recommendation from an environmental professional, certified industrial hygienist or person with similar
qualifications with respect to Significant Mold, or (c) is otherwise required by Lender as a consequence of any Prohibited Activity
or Condition or to prevent the occurrence of a Prohibited Activity or Condition, Borrower shall, at its sole cost and expense and
by the earlier of (1) thirty (30) days after notice from Lender demanding such action, or (2) the applicable deadline
required by Environmental Law or order, begin performing the Remedial Work, and thereafter diligently prosecute it to completion,
and shall in any event complete the work by the time required by applicable Environmental Law or order or relevant Governmental
Authority. If Borrower fails to begin on a timely basis or diligently prosecute any required Remedial Work, Lender may, at its
option, cause the Remedial Work to be completed, in which case Borrower shall reimburse Lender on demand for the cost of doing
so (including any related reasonable attorneys’ fees). Any reimbursement due from Borrower to Lender shall be due and payable
within ten (10) days of demand by Lender.

 

7.           Cooperation.

 

Borrower, at its sole cost
and expense, shall cooperate with any inquiry by any Governmental Authority and any determination of Lender that Prohibited Activities
or Conditions may exist (as provided in Section 5), and shall timely comply with any governmental or judicial order which arises
from any alleged Prohibited Activity or Condition.

 

	Environmental Indemnity Agreement	Form 6085	Page 7
	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

8.           Indemnification.

 

(a)          Except
(1) in connection with any Prohibited Activity or Condition caused directly by Lender or its agents or employees after it takes
possession as mortgagee-in-possession or otherwise, (2) as set forth in Section 8(g), or (3) to the extent that any such items
occur solely as a result of the gross negligence or willful misconduct of Lender or its affiliates, employees or representatives,
as determined by a court of competent jurisdiction pursuant to a final non-appealable court order, Borrower shall indemnify, hold
harmless and defend the Indemnitees for, from and against all actions, suits, claims, proceedings, orders, damages, penalties and
costs (whether initiated or sought by Governmental Authorities or private parties), including any reasonable fees and out-of-pocket
expenses of attorneys and expert witnesses, investigatory fees and remediation costs, whether incurred in connection with any judicial
or administrative process or otherwise, arising directly or indirectly from any of the following:

 

(A)         any
breach of any representation or warranty of Borrower in this Agreement;

 

(B)         any
failure by Borrower to perform any of its obligations under this Agreement;

 

(C)         any
Remedial Work;

 

(D)         the
existence or alleged existence of any Prohibited Activity or Condition, including any loss, cost or damage arising out of the existence
of any underground storage tank on the Mortgaged Property, whether known or unknown to any Borrower;

 

(E)         the
presence or alleged presence of Hazardous Materials on or under (i) the Mortgaged Property or (ii) any other property if the Hazardous
Materials were derived from, or alleged to have derived from, the Mortgaged Property; and

 

(F)         the
actual or alleged violation of any Environmental Law at the Mortgaged Property.

 

(b)          Borrower
shall be fully and personally liable for its obligations under this Agreement. To the extent permitted by law, Borrower’s
liability shall not be limited by the amount of the Indebtedness, the repayment of the Indebtedness or otherwise (including as
a result of any limitation on personal liability set forth in the Loan Agreement or any other Loan Document).

 

(c)          Counsel
selected by Borrower to defend Indemnitees shall be subject to the approval of those Indemnitees, which approval shall not be unreasonably
withheld, conditioned or delayed. However, any Indemnitee may elect to defend any action, suit, claim, proceeding, or order at
Borrower’s expense if such Indemnitee reasonably determines that there is a conflict between the interests of Borrower and
such Indemnitee, or if such Indemnitee reasonably determines that such election is necessary to protect Indemnitee’s security
under the Security Instrument. Notwithstanding the foregoing, Lender may employ at its own cost and expense its own legal counsel
and consultants to prosecute, defend or negotiate any action, suit, claim, proceeding, or order. Further, with the prior written
consent of Borrower (which shall not be unreasonably withheld, delayed or conditioned), Lender may settle or compromise any action,
suit, claim, proceeding, or order. Borrower shall reimburse Lender within fifteen (15) days of its receipt of written demand
from Lender for all reasonable costs and expenses incurred by Lender which are required to be reimbursed under the terms of this
provision, including all costs of settlements entered into in good faith, and the reasonable fees and out-of-pocket expenses of
attorneys and consultants.

 

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	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

(d)          Borrower
shall not, without the prior written consent of those Indemnitees who are named as parties to any action, suit, claim, proceeding,
or order, settle or compromise such action, suit, claim, proceeding, or order if the settlement may materially and adversely affect
any Indemnitee, as determined by Lender, or results in the entry of any judgment that does not include as an unconditional term
the delivery by the claimant or plaintiff to Lender of a written release of the applicable Indemnitees (such release satisfactory
in form and substance to Lender).

 

(e)          Borrower’s
obligation to indemnify the Indemnitees shall not be limited or impaired by any of the following, or by any failure of Borrower
or any guarantor to receive notice of or consideration for any of the following:

 

(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)         the
maturity of the Indebtedness may be accelerated as provided in the Loan Documents;

 

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

 

(6)         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;

 

(7)         any
amounts under the Loan Agreement or any other Loan Document may be released;

 

(8)         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;

 

(9)         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;

 

(10)        any
payments made by Borrower to Lender may be applied to the Indebtedness in such priority as Lender may determine; and

 

(11)        any
other terms of the Loan Documents may be modified as required by Lender.

 

(f)          Borrower
shall, at its own cost and expense, do all of the following:

 

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	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

(1)         pay
or satisfy any judgment or decree that may be entered against any Indemnitee in any legal or administrative proceeding incident
to any matters against which Indemnitees are entitled to be indemnified under this Agreement;

 

(2)         reimburse
Indemnitees for any expenses paid or incurred in connection with any matters against which Indemnitees are entitled to be indemnified
under this Agreement; and

 

(3)         reimburse
Indemnitees for any and all expenses, including reasonable fees and out-of-pocket expenses of attorneys and expert witnesses, paid
or incurred in connection with the enforcement by Indemnitees of their rights under this Agreement, or in monitoring and participating
in any legal or administrative proceeding.

 

(g)          The
provisions of this Agreement shall be in addition to any and all other obligations and liabilities that Borrower may have under
applicable law or under other Loan Documents, and each Indemnitee shall be entitled to indemnification under this Agreement without
regard to whether Lender or that Indemnitee has exercised any rights against the Mortgaged Property or any other security, pursued
any rights against any guarantor, or pursued any other rights available under the Loan Documents or applicable law. The obligation
of Borrower to indemnify the Indemnitees under this Agreement shall not be applicable to any Prohibited Activities or Conditions
or any other environmental contamination that occurs after:

 

(1)         the
date of any Foreclosure Event, or

 

(2)         if
Borrower has a right under applicable law to physical possession or control of the Mortgaged Property following the date of any
Foreclosure Event, the earlier of the date

 

(A)         Lender
takes physical possession and control of the Mortgaged Property, or

 

(B)         Lender
has the legal right to take physical possession and control of the Mortgaged Property;

 

provided, however, that in any such
event, Borrower (i) must have relinquished physical possession and control of the Mortgaged Property as of such date, and (ii)
shall have the burden of providing evidence to Lender’s satisfaction that any Prohibited Activities or Conditions or any
other environmental contamination occurred after such date.

 

9.           Event
of Default.

 

Borrower understands that
a default of its obligations under this Agreement that is not cured after the expiration of all applicable notice and cure periods,
if any, shall be an Event of Default under the Loan Agreement (as provided in Article 14 thereof), and that in addition to any
remedies specified in this Agreement, Lender shall be entitled to exercise all of its rights and remedies under the Loan Agreement
and other Loan Documents, however, the obligations hereunder shall not be secured by the Security Instrument.

 

	Environmental Indemnity Agreement	Form 6085	Page 10
	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

10.         Subrogation.

 

Borrower shall at its sole
cost and expense take any and all reasonable actions, including institution of legal action against third-parties, necessary or
appropriate to obtain reimbursement, payment or compensation from such persons responsible for any Prohibited Activities or Conditions
or for the presence of any Hazardous Materials at, in, on, under or near the Mortgaged Property or otherwise obligated by law to
bear the cost of any of the foregoing. Indemnitees shall be and hereby are subrogated to all of Borrower’s rights now or
hereafter in such actions, suits, claims, or proceedings arising out of or relating to any Prohibited Activity or Condition or
any Hazardous Materials.

 

11.         Termination
of Indemnification Obligations.

 

Except as provided in Section
11(a), Section 11(b), and Section 11(c), upon full performance by Borrower of all of its obligations under the Loan Documents,
including payment in full by Borrower of all Indebtedness pursuant to the terms of the Loan Documents, either at the Maturity Date
or by voluntary prepayment, Borrower shall have no obligation to indemnify the Indemnitees from and after the date of the receipt
by Lender of payment in full of all Indebtedness under the Loan Documents (the “Repayment Date”). Notwithstanding
the foregoing:

 

(a)          If
the payment of all or any part of the Indebtedness by Borrower, any Guarantor or any other Person 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 this Agreement and the indemnification obligations of
Borrower under this Agreement shall automatically be revived, reinstated and restored, and shall exist as though such Voidable
Transfer had never been made and the Lien of the Security Instrument not been released.

 

(b)          The
indemnification obligations of Borrower under this Agreement shall survive payment in full of the Indebtedness with respect to
any claims, suits, orders, proceedings or actions existing as of the Repayment Date or which subsequently come into existence prior
to the date on which Lender repays or restores, in whole or in part, any such Voidable Transfer as set forth in Section 11(a).

 

(c)          The
obligation of Borrower to indemnify the Indemnitees under this Agreement, as limited by Section 8(g), shall survive the occurrence
of any Foreclosure Event, even if, as a result of the occurrence of such Foreclosure Event, the Indebtedness is paid or satisfied
in full.

 

12.         Entity
Representations.

 

Borrower represents and
warrants that:

 

(a)          Borrower
has the full corporate, trust, limited liability company or partnership power and authority, as applicable, to execute and deliver
this Agreement and to perform its obligations hereunder;

 

(b)          the
execution, delivery and performance of this Agreement by Borrower has been duly and validly authorized;

 

(c)          all
requisite corporate, trust, limited liability company or partnership action, as applicable has been taken by Borrower to make this
Agreement valid and binding upon Borrower, enforceable in accordance with its terms, except as such enforceability may be limited
by applicable Insolvency Laws or the exercise of discretion by any court; and

 

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	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

(d)          this
Agreement constitutes a valid, legal and binding obligation of Borrower, enforceable against it in accordance with the terms hereof,
except as such enforceability may be limited by applicable Insolvency Laws or the exercise of discretion by any court.

 

13.         Waiver.

 

Borrower hereby waives
and relinquishes:

 

(a)          any
right or claim of right to cause a marshaling of Borrower’s assets or to cause any Indemnitee to proceed against any other
Person or any of the security for the Indebtedness before proceeding under this Agreement against Borrower;

 

(b)          all
rights and remedies accorded by applicable law to indemnitors or guarantors or sureties, except any rights of subrogation which
Borrower may have, provided that the indemnity provided for hereunder shall neither be contingent upon the existence of any such
rights of subrogation nor subject to any actions, suits, claims, proceedings, orders or defenses whatsoever which may be asserted
in connection with the enforcement or attempted enforcement of such subrogation rights including any actions, suits, claims, proceedings,
or orders that such subrogation rights were abrogated by any acts of any Indemnitee;

 

(c)          the
right to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any action or proceeding brought against
or by any Indemnitee;

 

(d)          notice
of acceptance hereof and of any action taken or omitted in reliance hereon;

 

(e)          presentment
for payment, demand of payment, protest or notice of nonpayment or failure to perform or observe, or other proof, or notice or
demand under this Agreement;

 

(f)          all
homestead exemption rights against the obligations hereunder and the benefits of any statutes of limitations or repose; and

 

(g)          any
limitation on the amount or type of damages, compensation or benefits payable by or for Borrower under workers’ compensation
acts, disability benefit acts or other employee benefit acts.

 

Notwithstanding anything to the contrary contained
herein, Borrower hereby agrees to postpone the exercise of any rights of subrogation with respect to any collateral securing the
Indebtedness until the Indebtedness shall have been paid in full. No delay by any Indemnitee in exercising any right, power or
privilege under this Agreement shall operate as a waiver of any such power, privilege or right.

 

14.         Notices.

 

All notices, demands and
other communications under or concerning this Agreement shall be in writing and given in accordance with the provisions of Section 15.02
(Notice) of the Loan Agreement.

 

15.         Rights
Cumulative.

 

The rights and remedies
provided herein are cumulative and not exclusive of any rights or remedies which Indemnitee has under the Note, the Loan Agreement,
the Security Instrument or any other Loan Document or would otherwise have at law or in equity.

 

	Environmental Indemnity Agreement	Form 6085	Page 12
	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

16.         Entire
Agreement.

 

This Agreement constitutes
the entire agreement of Borrower for the benefit of Lender and supersedes any prior agreements with respect to the subject matter
hereof.

 

17.         No
Modification Without Writing.

 

This Agreement may not
be terminated or modified in any way nor can any right of Lender or any obligation of Borrower be waived or modified, except by
a writing signed by Lender and Borrower.

 

18.         Severability.

 

Each provision of this
Agreement shall be interpreted so as to be effective and valid under applicable law, but if any provision of this Agreement shall
in any respect be ineffective or invalid under such law, such ineffectiveness or invalidity shall not affect the remainder of such
provision or the remaining provisions of this Agreement.

 

19.         Governing
Law.

 

This Agreement shall be
governed by and construed in accordance with the substantive law of the Property Jurisdiction without regard to the application
of choice of law principles that would result in the application of the laws of another jurisdiction.

 

20.         Jurisdiction.

 

Any controversy arising
under or in relation to this Agreement shall be litigated exclusively in the Property Jurisdiction without regard to conflict 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 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.

 

21.         Successors
and Assigns.

 

Subject to the terms of
the Loan Agreement, no Borrower may transfer or assign any of its rights or obligations under this Agreement without the prior
written consent of Lender. Subject to the foregoing, this Agreement shall be continuing, irrevocable and binding on each Borrower
and its successors and assigns and shall inure to the benefit of Lender and the other Indemnitees, and Lender’s successors
and assigns, including to any transferee pursuant to a Foreclosure Event.

 

22.         Time
is of the Essence.

 

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

 

23.         Joint
and Several (or Solidary) Liability.

 

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

 

	Environmental Indemnity Agreement	Form 6085	Page 13
	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

24.         Construction.

 

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

 

(b)          Any
reference in this 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
Agreement or to a Section or Article of this Agreement.

 

(c)          Any
reference in this 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 Agreement includes the plural and use of the plural includes the singular.

 

(e)          As
used in this 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 Agreement or the phrase “to Borrower’s knowledge” is used in
this 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 Agreement, if Lender’s designation, determination, selection, estimate, action, approval or decision
is required, permitted or contemplated hereunder, such designation, determination, selection, estimate, action, approval or decision
shall be made or withheld in Lender’s sole and absolute discretion.

 

(h)          All
references in this 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.

 

25.         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 AGREEMENT OR ANY OTHER LOAN DOCUMENT, 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 GIVEN BY BORROWER AND LENDER, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

 

IN WITNESS WHEREOF,
Borrower has signed and delivered this Agreement under seal (where applicable) or has caused this Agreement to be signed and delivered
under seal (where applicable) by its duly authorized representative. Where applicable law so provides, Borrower intends that this
Agreement shall be deemed to be signed and delivered as a sealed instrument.

 

[Remainder of Page Intentionally
Blank]

 

	Environmental Indemnity Agreement	Form 6085	Page 14
	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

	 	BORROWER:
	 	 
	 	BR FOX HILLS TIC-1, LLC, a Delaware limited liability company
	 	 
	 	By:	23Hundred, LLC, a Delaware limited liability company, its sole member
	 	 	 
	 	 	By:	/s/ Jordan Ruddy
	 	 	 	Name: Jordan Ruddy
	 	 	 	Title: Authorized Signatory

 

	Environmental Indemnity Agreement	Form 6085	Page 15
	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

	 	BORROWER:
	 	 
	 	BR FOX HILLS TIC-2, LLC, a Delaware limited liability company
	 	 
	 	By:	Bell BR Waterford Crossing JV, LLC, a Delaware limited liability company, its sole member
	 	 	 	 
	 	 	By:	/s/ Jordan Ruddy
	 	 	 	Name: Jordan Ruddy
	 	 	 	Title: Authorized Signatory

  

	Environmental Indemnity Agreement	Form 6085	Page 16
	Fannie Mae	08-14	© 2014 Fannie Mae

 

    	 

    	 

    

 

Exhibit
A

TO

ENVIRONMENTAL INDEMNITY AGREEMENT

 

Description of the Land

 

Lots
2 and 3, Block "A", PEDERNALES ELECTRIC COOPERATIVE-CIRCLE DRIVE, AUSTIN SUBDIVISION, a subdivision in Travis County,
Texas, according to the map or plat thereof, recorded under Document No. 200600156 of the Official Public Records of Travis County,
Texas.

 

	Environmental Indemnity Agreement	Form 6085	Page A-1
	Fannie Mae	08-14	© 2014 Fannie Mae

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