Document:

Property Management Agreement

 Exhibit 10.20 
 POPLAR CREEK APARTMENTS, SCHAUMBURG, ILLINOIS 
 PROPERTY MANAGEMENT AGREEMENT

 BETWEEN 
 RMK MANAGEMENT CORPORATION 
 AND 

KBS LEGACY PARTNERS POPLAR LLC 

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
		
	 Recitals
	  	 	1	  
	 ARTICLE 1.         DEFINITIONS
	  	 	1	  
	 1.01.
	 	Definitions	  	 	1	  
	 ARTICLE 2.         APPOINTMENT AND SERVICES OF PROPERTY
MANAGER
	  	 	2	  
	 2.01.
	 	Term	  	 	2	  
	 ARTICLE 3.         COMPENSATION AND EXPENSES OF PROPERTY
MANAGER
	  	 	9	  
	 3.01.
	 	Fees	  	 	9	  
	 3.02.
	 	Expenses to be Borne by Property Manager	  	 	10	  
	 3.04.
	 	Nonperformance	  	 	11	  
	 ARTICLE 4.         PERSONNEL AND BONDING
	  	 	12	  
	 4.01.
	 	Stability of Management Team	  	 	12	  
	 4.02.
	 	Fidelity Bond	  	 	12	  
	 4.03.
	 	Affiliates	  	 	12	  
	 ARTICLE 5.         COMPLIANCE WITH LAWS
	  	 	12	  
	 5.01.
	 	Compliance	  	 	13	  
	 5.02.
	 	Notice	  	 	13	  
	 5.03.
	 	Hazardous Wastes	  	 	13	  
	 5.04.
	 	Asbestos and Similar Compliance Matters	  	 	14	  
	 ARTICLE 6.         FINANCIAL MATTERS
	  	 	14	  
	 6.01.
	 	Books and Records	  	 	14	  
	 6.02.
	 	Reports	  	 	14	  
	 6.03.
	 	Audit	  	 	15	  
	 6.04.
	 	Other Reports and Statements	  	 	16	  
	 6.05.
	 	Contracts and Other Agreements	  	 	16	  
	 6.06.
	 	Final Accounting	  	 	16	  
	 6.07.
	 	Tax Returns	  	 	16	  
	 6.08.
	 	Certification	  	 	16	  
	 ARTICLE 7.         BANK ACCOUNTS
	  	 	16	  
	 7.01.
	 	Property Accounts	  	 	16	  
	 7.02.
	 	Expenses Paid By Owner	  	 	16	  
	 ARTICLE 8.         INSURANCE AND INDEMNITY
	  	 	17	  
	 8.01.
	 	INDEMNIFICATION	  	 	17	  
	 8.02.
	 	Property Manager’s Insurance Responsibility	  	 	18	  
	 8.03.
	 	Contract Documents; Indemnity Provisions	  	 	19	  
	 8.04.
	 	Ratings of Insurance Companies	  	 	20	  
	 8.05.
	 	Owner’s Insurance Responsibility	  	 	20	  
	 ARTICLE 9.         RELATIONSHIP OF PARTIES and REPRESENTATIONS and
WARRANTIES
	  	 	20	  
	 9.01.
	 	Nature of Relationship	  	 	20	  
	 9.02.
	 	Communications Between Parties	  	 	21	  
	 9.03.
	 	Relationship of Owner and Property Manager with Respect to Leasing	  	 	21	  
	 9.04.
	 	No Sales Brokerage Agreement	  	 	21	  
	 9.05.
	 	Confidentiality	  	 	22	  

							
	 9.06.
	  	Property Manager Not to Pledge Owner’s Credit	  	 	22	  
	 9.07
	  	Representations and Warranties	  	 	22	  
	 ARTICLE 10.     TERMINATION
	  	 	22	  
	 10.01.
	  	Termination by Owner Without Cause	  	 	22	  
	 10.02.
	  	Termination by Owner for Cause	  	 	22	  
	 10.03.
	  	Termination by Property Manager	  	 	23	  
	 10.04.
	  	Orderly Transition	  	 	23	  
	 10.05.
	  	Rights Which Survive Termination or Expiration	  	 	24	  
	 ARTICLE 11.     MISCELLANEOUS
	  	 	24	  
	 11.01.
	  	Governing Law	  	 	24	  
	 11.02.
	  	Table of Contents and Headings	  	 	24	  
	 11.03.
	  	Entire Agreement	  	 	24	  
	 11.04.
	  	Successors and Assigns	  	 	24	  
	 11.05.
	  	Waiver	  	 	24	  
	 11.07.
	  	Time	  	 	25	  
	 11.08.
	  	Attorneys’ Fees	  	 	25	  
	 11.09.
	  	Further Acts	  	 	25	  
	 11.10.
	  	No Advertising	  	 	25	  
	 11.11.
	  	Signs	  	 	25	  
	 11.12.
	  	Owner Exculpatory Clause; Waivers of Jury Trial and Punitive Damages	  	 	25	  
	 11.14.
	  	Notices	  	 	26	  
	 11.15.
	  	Counterparts	  	 	27	  
		
	 EXHIBITS:
	  			
			
	 A -
	  	 LEGAL DESCRIPTION
	  	 	A-1	  
			
	 B -
	  	 RENTAL GUIDELINES
	  	 	B-1	  
			
	 C -
	  	 STANDARD RESIDENTIAL LEASE FORM
	  	 	C-2	  

 PROPERTY MANAGEMENT AGREEMENT 

This PROPERTY MANAGEMENT AGREEMENT (this “Agreement”) is made as of February 9, 2012 (the
“Effective Date”) between RMK Management Corporation, a Illinois (“Property Manager”), and KBS LEGACY PARTNERS POPLAR LLC, a Delaware limited liability company (“Owner”). 

RECITALS 
 A.      Owner is the record or beneficial owner of the Property (as defined below) and Property Manager is experienced in the management, operation, leasing, service, repair
and supervision of residential apartment projects similar to the Property. 

B.      The parties desire to enter into this Agreement and set forth the terms and
conditions under which Property Manager will manage the Property. 
 NOW, THEREFORE, in consideration of
the mutual covenants herein contained and other good and valuable consideration, Owner and Property Manager agree as follows: 

AGREEMENT 
  

	ARTICLE 1.	DEFINITIONS. 

 1.01.   Definitions. As used in this Agreement, the following terms shall have the respective meanings set forth below: 

“Affiliate” shall mean, when used with respect to any person (a) if such person is a corporation, any
officer or director thereof and any person which is directly, or indirectly, the beneficial owner of more than 10% of any class of equity security (as defined in the Securities Exchange Act of 1934) thereof, or if any such beneficial owner is a
partnership, any partner thereof, or if any such beneficial owner is a corporation, any person controlling, controlled by or under common control with such beneficial owner or of any officer or director of such beneficial owner or of any corporation
occupying any such control relationship, (b) if such person is a partnership, any partner thereof, and (c) any other person which directly or indirectly controls or is controlled by or is under common control with such person. For the
purpose of this definition, “control” (including the correlative meanings of the term “controlling,” “controlled by” and “under common control with”), with respect to any person, shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of such person, whether through the ownership of voting securities or by contract or otherwise. The term “Affiliate” shall also mean, when
used with respect to any individual, the parents and grandparents of such individual, the parents and grandparents of any other individual who is an Affiliate of such individual by virtue of any one or more of the foregoing clauses (a),
(b) and (c) of this definition, any descendant (whether natural or adopted) of any such parents or grandparents and any spouse of any such descendant. 

  
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 “Annual Business Plan” shall have the meaning described in
Section 2.02(q). 
 “Approved Capital Budget” and “Approved Operating Budget” shall
have the meanings described in Section 2.02(b). 
 “Fiscal Year” shall mean the twelve
(12) months commencing January 1 and ending December 31. 
 “Gross Monthly
Collections” shall mean the total gross monthly collections received from the Property, including, without limitation, tenant rental income, pet rents and other charges and miscellaneous income items of Owner as applicable. Any payments by
tenants on account of any taxes imposed on rentals collected by Property Manager shall be excluded from Gross Monthly Collections. Any advance rental payments shall be included in Gross Monthly Collections when received. Security and other deposits
shall not be included therein unless the same are no longer used for security purposes and are applied to income. Without limitation, any payment of money by a tenant to Owner or Property Manager in consideration for or in conjunction with a rental
deposit, the termination, cancellation, expiration, renewal, extension or modification of a tenant’s lease, property insurance loss proceeds, remodeling and tenant improvement charge costs, condemnation proceeds, or proceeds received by Owner
in connection with the sale of any portion of the Property or the refinancing of any indebtedness secured by a lien on any portion of the Property, shall be excluded from the Gross Monthly Collections. Proceeds of business interruption insurance
shall be included in Gross Monthly Collections. 
 “Legacy” shall mean Legacy Partners Residential
L.P., a Delaware limited partnership. Legacy has been retained by Owner as an independent contractor for the provision of certain record keeping and accounting services with respect to the Property. In the event Owner notifies Property Manager that
Legacy is no longer retained by Owner, all references to Legacy shall be deemed references to Owner. 

“Property” shall mean that certain real property consisting of approximately twelve and eighth-tenths
(12.8) acres and improvements constructed thereon consisting of one hundred ninety six (196) residential units (commonly known as the Poplar Creek Apartments) and zero (-0-) square feet of retail space located in the Schaumburg, Illinois
as more particularly described on Exhibit A attached hereto. 
 “Records Office” shall mean Property
Manager’s offices located at the Property and its corporate office in Chicago, Illinois. 
 “Rental
Guidelines” shall mean those guidelines attached hereto as Exhibit B, as amended from time to time. 
  

	ARTICLE 2.	APPOINTMENT AND SERVICES OF PROPERTY MANAGER. 

 2.01.    Term.     Owner hereby hires Property Manager as the exclusive manager of the Property upon the terms and conditions herein stated, and Property Manager
hereby accepts said engagement, for a term beginning on the date of this Agreement and ending at 12:00 midnight on the 

  
 2 

 
one-year anniversary of the beginning date, unless sooner terminated by Owner or Property Manager as provided in Article 10 of this Agreement. At the expiration of said term, this Agreement
will be renewed automatically for successive periods of one (1) year each, unless written notice of non-renewal is given by Owner to Property Manager at least thirty (30) days prior to the end of the then-existing term, or by Property
Manager to Owner at least ninety (90) days prior to the end of the then-existing term; such renewal terms shall be subject to termination as provided in Article 10 of this Agreement. 

2.02.   Services of Property Manager. Property Manager shall direct, supervise, manage, operate,
maintain and repair the Property and develop, institute and follow programs and policies to facilitate the efficient operation of the Property in compliance with this Agreement, the Rental Guidelines and all written directions of Owner on as
profitable a basis as reasonably possible. Without limiting the generality of the foregoing and subject at all times to such procedures and directions that shall be set forth in this Agreement and the Rental Guidelines (as revised or amended from
time to time), Property Manager shall do all of the following: 

(a)        Employees. Property Manager shall select,
employ, pay, supervise and discharge all employees and personnel necessary for the operation, maintenance and protection of the Property (subject to the limitations set forth in Section 4.01 hereof). All persons so employed by Property Manager
shall be employees of Property Manager or independent contractors retained by Property Manager, and not by Owner. All costs of gross salary and wages, payroll taxes, medical and dental insurance, worker’s compensation insurance, incentive
leasing bonuses and other costs and employee benefit expenses payable on account of such employees, shall be included in the Approved Operating Budget. Property Manager shall fully comply with all applicable laws and regulations having to do with
workers’ compensation, social security, unemployment insurance, hours of labor, wages, working conditions and other employer/employee-related subjects. 

(b)        Records and Budgets. Property Manager shall
keep or cause to be kept at the Records Office suitable books of control as provided in this Agreement. Property Manager shall prepare on Microsoft Excel worksheets (using Yardi templates) and submit to Owner and Legacy such monthly, quarterly,
annual or other operating and capital budgets as shall be required by Owner. Without limitation, Property Manager shall prepare and submit to Owner and Legacy a proposed operating budget and a proposed capital budget for the Property for the
management and operation of the Property for the forthcoming Fiscal Year no later than November 1 of each year during the term hereof. All proposed operating budgets and capital budgets shall be on a form submitted by Property Manager and
approved by Owner. Owner will consider the proposed budgets and endeavor to approve such budgets by December 1 of each year during the term hereof. The proposed budgets shall become the Approved Capital Budget and the Approved Operating Budget
only when approved by Owner. 
 In the event an annual operating budget for a Property has not
been approved by Owner prior to the commencement of any Fiscal Year during the term hereof, the operating budget for each month (the “Current Month”) until the annual operating budget is approved shall be the amount of the most
recent Approved Operating Budget for the Property for the 

  
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same calendar month (“Base Month”), as adjusted to reflect (a) any increase or decrease between the Base Month and the Current Month in the Consumer Price Index for All
Urban Consumers for the metropolitan area in which the Property is located (base year 1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics and (b) any increase or decrease in the occupancy of the Property
between the Base Month and the Current Month and (c) any increase or decrease in the taxes, insurance and utilities of the Property. 
 Owner may revoke its approval of either Budget at any time upon twenty (20) days’ prior written notice to Property Manager and Legacy. Owner may amend its approval of either Budget and cause the
Budget to be amended to conform to such approval at any time upon twenty (20) days’ prior written notice to Property Manager and, in such event, only the Budget as so amended shall be deemed approved. 

With respect to the first Fiscal Year of the term, if not a full twelve months, Property Manager shall
submit to Owner and Legacy for approval an operating and capital budget for the balance of such calendar year as soon as possible and no later than thirty (30) days after the date hereof. 

Property Manager shall have the right, from time to time, during each calendar year to submit revised
Budgets to Owner and Legacy for approval. Property Manager agrees to use diligence and all reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the Approved Operating Budget or the Approved
Capital Budget pertaining thereto, as applicable. 

(c)        Leasing. Property Manager shall coordinate the
leasing activities of the Property and, subject to Section 9.03 below, shall use commercially reasonable efforts to obtain responsible tenants for all unleased units and to renew existing leases at rental rates at least equal to the Rental
Guidelines. Property Manager may negotiate and execute leases using the standard lease forms for Owner approved by Owner and attached hereto as Exhibit C. Any deviation from the standard lease forms or the Rental Guidelines shall require the prior
written consent of Owner. 
 (d)        Rent.
Property Manager shall use reasonable efforts to ensure that all rents and all other monies payable under the leases are paid by the tenants of the Property as and when the same shall become due and payable directly to Property Manager. Property
Manager shall adjust rentals and other required payments where adjustment is contemplated by the leases, shall notify Owner and tenants of such adjustments and shall sign and serve in the name of Owner such notices (except as limited by
Section 2.02(e) below), including without limitation letters demanding past due and currently owed rents and other monies, as are deemed appropriate or necessary by Property Manager. Property Manager shall collect and identify any income due
Owner from miscellaneous services provided to tenants or the public, including, but not limited to, parking income, tenant storage and cable television charges. All rents and other monies so collected by Property Manager shall be immediately
deposited in the Property Bank Account (as defined below). 

  
 4 

(e)        Collections. Property Manager shall undertake
the collection of rents and monetary payments of every kind and of any form due from tenants of the Property. Monthly rent shall be collected from new or renewing tenants of the Property using Electronic Funds Transfer (EFT) or Automatic Clearing
House (ACH) debits from tenant’s accounts in accordance with the approved form of lease; Property Manager shall use commercially reasonable efforts to collect rent from existing tenants of the Property using EFT or ACH debits from tenant’s
accounts. Manager shall thereafter actively pursue collection of all such rent and payments. Except as allowed by applicable law, Property Manager shall not terminate any lease, lock out a tenant, institute a suit for rent or for use and occupancy,
or institute proceedings for recovery of possession. In the event that any tenant at the Property shall be delinquent in any payment due to Owner beyond any applicable grace periods or otherwise be in default under the terms of its lease, Property
Manager shall employ such methods as are commercially reasonable to either collect unpaid rent or to evict the tenant from the premises. Property Manager shall employ a collection agency to pursue payment collection and, except as otherwise required
by applicable law, shall utilize legal counsel only if a tenant refuses to vacate an apartment unit following proper notice. The commencement of any litigation (other than for routine residential tenant eviction and residential rent collection
matters, including bringing suit for and recovery of any delinquent rents or damages and possession of the premises in the name of Owner as an agent with a beneficial interest), shall require the prior written approval of Owner. In connection with
all suits or proceedings (other than for routine residential tenant eviction and residential rent collection matters, including bringing suit for and recovery of any delinquent rents or damages and possession of the premises in the name of Owner as
an agent with a beneficial interest), only legal counsel approved by Owner shall be retained, but Property Manager shall recommend legal counsel and furnish Owner with the estimated costs of legal services to be incurred in bringing such suit or
proceeding. 
 (f)        Maintenance. Property
Manager shall maintain or cause to be maintained (to the extent not maintained by tenants) the Property and common areas thereof, external and internal, including, without limitation, sidewalks, signs, mechanical, electrical and other systems,
parking lots and landscaping, in good and clean condition and repair, provided no maintenance expense, repairs or alterations other than emergency repairs, which are not specifically identified within the Approved Operating Budget, shall be
undertaken without the prior written consent of Owner. Property Manager shall coordinate and supervise all construction activities (including, without limitation, tenant improvements, tenant refurbishment, common area refurbishment, maintenance and
repairs) on the Property. All maintenance expenses, repairs or alterations (including, without limitation, alterations required for the occupancy of new tenants) requiring expenditures in excess of $25,000 shall, at Owner’s election, be planned
and supervised by an architect, designer, inspector or general contractor designated by Property Manager and approved in writing by Owner. Property Manager shall institute and effectuate a preventative maintenance program. Notwithstanding the
foregoing, in the event of an emergency in which there is an immediate danger to persons or property or in which action is required in order to avoid suspension of services, Property Manager shall take such action as is reasonable and prudent under
the circumstances and shall be reimbursed for any expense incurred in such action, even if not in the Approved Operating Budget, so long as Property Manager attempts to consult with Owner in advance

  
 5 

 
and, in any event, notifies Owner within 48 hours of taking such action explaining the reasons therefor. Property Manager shall obtain all necessary receipts, releases, waivers, discharges and
assurances necessary to keep the Property free of any mechanics’, laborers’, materials suppliers’ or vendors’ liens in connection with the maintenance or operation of the Property. All such documentation shall be in such form as
required by Owner. 
 (g)        Contracts.
Property Manager shall not enter into any contract without Owner’s prior written approval (including approval of the provisions of any equipment lease); provided, however, that Owner’s prior written approval shall not be required with
respect to any utility or service contract which is (i) entered into in the usual course of business, (ii) for a term of one year or less, and (iii) specifically provided for in the Approved Operating Budget. Without limiting the
foregoing, each contract entered into by Property Manager pursuant to this Section 2.02(g) shall contain a thirty (30) day (or less) cancellation clause exercisable by Owner without cause and without penalty or fee, unless otherwise
approved in writing by Owner. All utility, supply, service, vending and related contracts or equipment leases are to be entered into by Property Manager on behalf of Owner. Property Manager shall assure that any contractor performing work on the
Property maintains insurance satisfactory to Owner, including, but not limited to, Workers’ Compensation Insurance (and, when required by law, compulsory Non-Occupational Disability Insurance) and insurance against liability for injury to
persons and property arising out of all such contractor’s operations naming Property Manager and Owner as additional insureds. Property Manager shall obtain certificates of insurance for all such insurance before the work begins. Property
Manager shall furnish copies of the certificates to Owner if requested by Owner. 

(h)        Purchases. Property Manager shall supervise and
purchase or arrange for the purchase of all reasonable inventories, provisions, supplies and operating equipment which are provided for in the Approved Operating Budget or otherwise specifically approved by Owner in writing. To the extent available,
Property Manager shall give, or obtain for Owner, all volume purchasing benefits and discounts available to Property Manager or to properties of the size and class of the Property. 

(i)        Operating Expenses. Property Manager shall
approve payment of all normal operating expenses specifically provided for in the Approved Operating Budget not paid for by tenants of the Property; Owner (or Legacy in its capacity as agent of Owner) shall pay such expenses in a manner commercially
reasonable for the Property . Property Manager shall recommend that Owner purchase major items of new or replacement equipment when Property Manager believes such purchase to be necessary or desirable. Owner may arrange to purchase and install such
items itself or may authorize Property Manager to do so subject to any supervision and specification requirements and conditions prescribed by Owner. Prior to purchasing, Property Manager must obtain Owner’s specific written authorization for
all capital expenditures that are not included in the Approved Capital Budget as well as for all capital expenditures of $25,000 or more that are included and itemized with specificity in any one (1) line item in the Approved Capital Budget.
Unless otherwise directed by Owner, Property Manager shall obtain at least three (3) written estimates from qualified bidders for any capital improvement project if the cost of such project is reasonably expected to exceed

  
 6 

 
$25,000. All capital improvement projects requiring expenditures in excess of $25,000 shall, at Owner’s election, be planned and supervised by an architect, designer, inspector or general
contractor designated by Property Manager and approved in writing by Owner. 

(j)        Conservation Techniques. Property Manager shall
provide proper energy management and utilize utility conservation techniques. 

(k)        Security. Property Manager shall use reasonable
efforts to maintain security adequate to the needs of the Property as directed by Owner from time to time. Property Manager shall promptly notify Owner of any incidents or conditions which reflect on or affect the adequacy of the security provisions
for the Property. 
 (l)        Taxes. Property
Manager shall obtain and caused to be verified bills for real estate and personal property taxes, sales taxes on rental payments, improvement assessments and other like charges which are or may become liens against any portion of the Property
(collectively, “Taxes”). Property Manager shall remit all bills for Taxes to Owner and Legacy within fifteen (15) calendar days of receipt of such bills. 

(m)      Compliance. Property Manager shall operate the Property in
compliance with all terms and conditions of applicable law, any ground lease, space lease, mortgage, deed of trust or other security instrument affecting the Property and of which Property Manager has knowledge, but Property Manager shall not be
required to make any payment (except those provided in the Approved Operating Budget) on account thereof unless specifically instructed to do so by Owner in writing. Property Manager shall also comply or supervise compliance with the provisions of
any insurance policy or policies insuring Owner in relation to the Property (so as not to decrease the insurance coverage or increase the insurance premiums). Property Manager shall be responsible for performance by Owner under all license
agreements, easement agreements, covenants, conditions, restrictions, documents of record, use permits, development agreements, operating agreements or other similar documents governing or applicable to the title, operation, management, occupancy,
promotion and leasing of the Property known to Property Manager. 

(n)        Licenses and Permits. Property Manager shall
assist in obtaining at Owner’s expense all licenses, permits or other instruments required for the operation of the Property or any portion thereof (collectively, “Licenses”). Property Manager shall send to Owner a copy of all
initial or renewal license applications. Licenses shall be obtained in Owner’s name whenever possible. Any Licenses held in the name of Property Manager shall be held by it on behalf of Owner, and upon the termination or expiration of this
Agreement, Property Manager shall transfer or assign any such Licenses to Owner or to such person as Owner may direct. Property Manager shall keep in full force and effect all licenses, permits, consents and authorizations as may be necessary for
the proper performance by Property Manager of its duties and obligations under this Agreement (including, without limitation, qualification to do business) or as may be required under any lease covering any portion of the Property. All such
licenses, permits, consents and authorizations shall be in the name of Property Manager. 

  
 7 

 (o)        Notice
and Cooperation in Legal Proceedings. Owner and Property Manager shall forthwith give notice to each other of the commencement of any action, suit or proceeding against Owner or against Property Manager with respect to the operations of the
Property or otherwise affecting the Property. Property Manager shall fully cooperate, and shall cause all its employees to fully cooperate, in connection with the prosecution or defense of all legal proceedings affecting the Property. 

(p)        Other Complaints and Notices. Property Manager
shall handle promptly complaints and requests from tenants, concessionaires and licensees and notify Owner of any major complaint made by a tenant, concessionaire or licensee. Property Manager shall notify Owner promptly of: (i) any notice
received by Property Manager or known to Property Manager of violation of any governmental requirements (and make recommendations regarding compliance therewith); (ii) any defect or unsafe condition in the Property known to Property Manager;
(iii) any notice received by Property Manager or known to Property Manager of violation of covenants, conditions and restrictions affecting the Property or noncompliance with loan documents affecting the Property, if any; (iv) any fire,
accident or other casualty or damage to the Property; (v) any condemnation proceedings, rezoning or other governmental order, lawsuit or threat thereof involving the Property; (vi) any violations relative to the leasing, use, repair and
maintenance of the Property under governmental laws, rules, regulations, ordinances or like provisions; (vii) defaults under any leases or other agreements affecting the Property (excluding resident leases); or (viii) any violation of any
insurance requirement. Property Manager shall promptly deliver to Owner copies of any documentation in its possession relating to such matters. Property Manager shall keep Owner reasonably informed of the status of the particular matter through the
final resolution thereof. In the case of any fire or other damage to the Property or violation or alleged violation of laws respecting Hazardous Wastes (as defined in Section 5.03), Property Manager shall immediately give telephonic notice
thereof to Owner. Property Manager shall complete all necessary and customary loss reports in connection with any fire or other damage to the Property. Property Manager shall retain in the records it maintains for the Property copies of all
supporting documentation with reference to such notices. 

(q)        Business Plan and Property Review Program.
Property Manager shall provide Owner and Legacy with a draft of a business plan for the Property for the forthcoming Fiscal Year no later than November 1 of each year during the term hereof containing such information as Owner may reasonably
request, including (i) a list of all properties competitive with the Property, a list of the tenants of each and all other reasonably available information respecting each, and (ii) basic demographic data relating to the market area of the
Property, including population growth, major employers, employment and unemployment levels and, if the Property is a retail property, retail sales and housing starts. With respect to the first Fiscal Year of the term, Property Manager shall submit
to Owner for approval a draft of a business plan for the balance of such calendar year as soon as possible and no later than thirty (30) days after the date hereof. Owner will consider the business plans and endeavor to approve such business
plans by December 1 of each year during the term hereof. The proposed business plans shall become the Annual Business Plan only when approved by Owner. In addition, Property Manager shall participate in Owner’s property review programs to
the extent requested by Owner. Such review shall include asset, investment, financial and 

  
 8 

 
strategy profiles in form and substance satisfactory to Owner and such assistance as Owner may request in connection with appraisals of the Property. Property Manager shall respond, within 10
days, to Owner’s management evaluation reports concerning actions to be taken by Property Manager to correct or modify its management standards for the operations or financial services provided for the Property. 

(r)        General.   Property Manager shall
afford such supervision, professional management and in-house staff services as may be necessary or desirable to operate the Property in the same manner as is customary and usual in the operation of other properties of substantially comparable
location, class, size and standing, and shall provide such services at the Property as are consistent with the Property’s size and existing facilities. Subject only to those express limitations set forth in this Agreement, Property Manager
shall have control and discretion in the management and operation of the Property and in the performance of the foregoing services. Without limiting the foregoing, if applicable, Property Manager shall review and, if so directed by Owner, conduct an
audit of each retail tenant’s compliance with its obligation to pay a percentage rent or any other amount determined on the basis of the tenant’s sales or gross or net income. 

 

	ARTICLE 3.	COMPENSATION AND EXPENSES OF PROPERTY MANAGER. 

 3.01.   Fees. 

(a)        Owner shall pay Property Manager, and Property Manager
shall accept as full compensation for the property management services to be rendered to Owner hereunder during the term hereof, a sum equivalent to two percent (2%) of Gross Monthly Collections (the “Management Fee”). Such
compensation shall be payable monthly on or before the 20th of the subsequent month. 

(b)        In the event that Property Manager is requested by
Owner to coordinate and supervise major repairs or improvements to a Property (after its development is completed) that should be capitalized under generally accepted accounting principles (“Capital Expenditures”), Property Manager
shall receive a construction supervision fee equal to a percentage of the hard costs of such Capital Expenditures (the “Construction Supervision Fee”) as follows: 

 

							
		 	JOB COST:	  	FEE:	  	
	 	 Under $100,000
	  	8%	  
	 	 $100,000 - $249,999
	  	6.5%	  
	 	 $250,000 - $499,999
	  	6.0%	  
	 	 $500,000 – 4,999,999
	  	5.0%	  
	 	 Over $5,000,000
	  	Negotiable	  

 (c)        If the Property
includes retail space, Owner may agree to pay a leasing commission (the “Retail Commission”) to Property Manager, at a rate to be agreed upon, for retail leases executed during the term of this Agreement between Owner and the retail
tenants procured or obtained by Property Manager. Notwithstanding the foregoing, Owner 

  
 9 

 
shall have the right in its sole and absolute discretion to reject any prospective retail lease, renewal or extension agreement and, in such event, no Retail Commission or other compensation
shall be earned or payable in connection with such proposed retail lease, renewal or extension agreement or the activities of Property Manager, or any other broker in connection therewith. 

(d)        Except with respect to other services provided by
Affiliates of Property Manager in accordance with Section 3.01(e), which shall be reimbursed by Owner pursuant to Section 3.01(e), Property Manager shall pay from the Management Fee all costs associated with or relating to its own office
overhead and management personnel not located or employed at the Property, including without limitation, the salaries, wages and all other compensation, together with associated unemployment and social security taxes and contributions, as well as
expenses specifically stated in this Agreement to be borne by Property Manager. 

(e)        If included in the Approved Capital Budget or with the
prior approval and direction of Owner, Property Manager may obtain services and materials including, but not limited to, advertising, consulting, training, computer hardware and software, forms for use at the Property, contract services and building
materials through the organization, subsidiaries or Affiliates of Property Manager for the benefit of the Property, provided the quality of service and the price thereof is competitive with comparable prices and services offered by third parties,
and the costs therefore shall be reimbursed by Owner. All discounts, rebates and other savings realized thereon by Property Manager are to be passed on to Owner, in full. 
 3.02.   Expenses to be Borne by Property Manager. Unless otherwise provided in the Approved Operating Budget or Section 4.01(b) below, expenses incurred in rendering all overall
supervisory, lease negotiation (exclusive of lease commissions, if any), rent and other collection (exclusive of on-site personnel, attorneys’ fees and outside collection agency fees), lease enforcement (exclusive of on-site personnel and
attorneys’ fees), lease termination, management and recordkeeping and other services to be rendered by Property Manager in connection with the operations of the Property shall be borne by Property Manager and not charged to Owner. Without
limiting the generality of the foregoing provisions of this section, the following expenses and costs incurred by and/or on behalf of Property Manager shall be at the sole cost and expense of Property Manager and shall not be reimbursed by Owner:

 (a)        All costs of gross salary and wages,
payroll taxes, insurance, workmen’s compensation and other costs of Property Manager’s corporate office and executive personnel (other than full time or part time personnel whose positions and salaries are specifically authorized in the
Approved Operating Budget); 
 (b)        All costs
incurred as a result of Property Manager’s breach of this Agreement, and/or the negligence and/or willful misconduct of Property Manager and/or any one or more of its Affiliates, employees, independent contractors, agents and/or other
representatives; 
 (c)        Unless otherwise provided
in the Approved Operating Budget, all costs of 

  
 10 

 
forms, accounting materials, administrative materials, papers, ledgers and other supplies and equipment used in Property Manager’s corporate office, all costs of Property Manager’s data
processing equipment located at Property Manager’s corporate office and all costs of data processing provided by computer service companies to Property Manager’s corporate office; 

(d)        All costs of bonuses, incentive compensation, profit
sharing or any pay advances to employees employed by Property Manager in connection with the operation and management of the Property, except for payments to individuals specifically set forth in the Approved Operating Budget or otherwise approved
in writing by Owner in advance; 
 (e)        All costs
of automobile purchases and/or rentals, unless provided for in the Approved Operating Budget or Approved Capital Budget or the automobile is being provided by Owner; 

(f)        All costs of comprehensive crime insurance purchased
by Property Manager for its own account; 

(g)        All costs of meals, travel and hotel accommodations
for Property Manager’s home or regional office personnel who travel to and from the Property, unless expressly authorized by Owner; and 
 (h)        All costs (exclusive of fees that are directly property related, e.g., registration fee) of obtaining and maintaining such licenses, permits,
consents and authorizations as are required by Section 2.02(n). 
 3.03.   Noncustomary Services.
Notwithstanding anything provided in this Agreement to the contrary, Property Manager shall not furnish or render to the tenants of the Property services other than those services customarily furnished to tenants of properties similar to the
Property unless: (a) Property Manager makes a separate, adequate charge to tenants for such services; (b) such separate charge is received and retained by Property Manager; (c) Property Manager bears the cost of providing such
services; (d) Property Manager first obtains the consent in writing of Owner; and (e) Property Manager certifies in writing to Owner that (i) Property Manager qualifies as an independent contractor with respect to Owner (and
Owner’s direct and indirect beneficial owners) under Section 856(d)(3) of the Internal Revenue Code, and (ii) Owner (and Owner’s direct and indirect beneficial owners) does not derive or receive any income
from Property Manager. For purposes of this Section 3.03, it is agreed, without limitation, that the furnishing of water, heat, light and air conditioning, public entrances and exits, the performance of general maintenance and of janitorial
services and cleaning services, the collection of trash, watchmen or guard services and parking facilities are examples of services customarily furnished to the tenants of similar properties. 

3.04.   Nonperformance.   If Property Manager fails to perform any act required under this Agreement, then
Owner, after ten (10) days’ written notice to Property Manager (or, in the case of any emergency, without notice) and without waiving or releasing Property Manager from any of its obligations hereunder, may (but shall not be required to)
perform such act. Owner shall have (in addition to any other right or remedy) the right to offset all costs and expenses incurred in exercising its rights under this Section 3.04 against any sums due or to become due to Property Manager,

  
 11 

 
including, without limitation, the Management Fee. 
  

	ARTICLE 4.	PERSONNEL AND BONDING. 

4.01.   Stability of Management Team. Owner and Property Manager recognize the benefits inherent in promoting stability
in the management team engaged in the operation of the Property. 

(a)        Property Manager shall, in the hiring of all employees
and in retaining independent contractors, use reasonable care to select qualified, competent and trustworthy employees and independent contractors. Subject to the provisions of this Section 4.01, the selection, terms of employment (including
rates of compensation) and termination thereof, and the supervision, training and assignment of duties of all employees of Property Manager engaged in the operation of the Property shall be the duty and responsibility of and shall be determined by
Property Manager. All personnel at the Property shall be employees of Property Manager and/or contractors of Property Manager. 
 (b)        Property Manager shall employ at Property Manager’s sole cost and expense (unless otherwise provided in the Approved Operating Budget) a manager who
works from the Records Office and manages the Property and other properties (the costs and expenses for whom, if provided for in the Approved Operating Budget, shall be pro rated in light of the time spent managing the Property as opposed to other
properties). 
 4.02.   Fidelity Bond. Property Manager, at Property Manager’s cost, shall obtain a
fidelity bond or bonds covering Property Manager, and all persons who handle, have access to, or are responsible for, Owner’s monies in such amount and in such forms as are reasonably acceptable to Owner, at all times and to cover all periods,
during the term of this Agreement. Any changes in such bond(s) must be approved by Owner. Property Manager hereby agrees to add Owner as a joint loss payee under its blanket crime policy as it pertains to the Property. Property Manager hereby
assigns all proceeds of said bond(s) as they relate to the Property to Owner and agrees to execute such further assignments and notices thereof as shall be required by Owner. Such bond(s) shall indemnify Owner against any loss of money or other
property which Owner shall sustain through any criminal, fraudulent or dishonest act or acts committed by Property Manager or any of its employees or agents, during the performance of their obligations under this Agreement or their employment.
Alternatively, Property Manager may obtain a crime insurance policy covering the Property Manager, and all persons who handle, have access to, or are responsible for, Owner’s monies which shall be obtained at Manager’s sole expense and
shall provide Owner coverage of Two Million Dollars ($2,000,000.00) per occurrence with a Fifty Thousand Dollar ($50,000.00) deductible which deductible shall be an expense of Manager. Owner shall be furnished by Property Manager with a certificate
or other satisfactory documentation relating to the bond(s) or alternative crime insurance policy immediately upon issuance thereof. 
 4.03.   Affiliates. Property Manager shall not contract for outside services for the Property with any Affiliate of Property Manager without the prior written consent of Owner.

  

	ARTICLE 5.	COMPLIANCE WITH LAWS. 

  
 12 

 5.01.   Compliance. Property Manager shall comply fully with and abide by
all laws, rules, regulations, requirements, orders, notices, determinations and ordinances (collectively, “Requirements”) of any federal, state or municipal authority to the extent applicable, including, but not by way of
limitation, the federal Occupational Safety and Health Act (OSHA) statutes, rules and regulations, and all requirements of the insurers of the Property and Owner’s liabilities with regard thereto. If the cost of compliance is (i) not
included in the Approved Operating Budget or Approved Capital Budget or (ii) in excess of $10,000, Property Manager shall notify Owner promptly and obtain Owner’s prior written approval prior to making the expenditure. 

5.02.   Notice. Property Manager shall promptly notify Owner of any non-compliance with, or alleged violation of, any
Requirement after becoming aware of the same. 
 5.03.   Hazardous Wastes. 

(a)        Property Manager shall not place, cause or permit to
be placed on the Property, other than in the ordinary course of performing its obligations under this Agreement and in compliance with applicable law, any hazardous or toxic wastes or substances, as such terms are defined by federal, state or
municipal statutes or regulations promulgated thereunder (collectively, “Hazardous Wastes”). If Property Manager discovers the existence of any Hazardous Wastes on the Property (other than Hazardous Wastes used, generated or stored
in the ordinary course of business and in compliance with applicable law), Property Manager shall immediately notify Owner. If such Hazardous Wastes were placed or knowingly permitted to be placed on the Property by Property Manager, Property
Manager shall, at its cost, diligently arrange for and complete the immediate removal thereof in accordance with applicable laws and Owner’s directions. Except as expressly provided herein to the contrary, Property Manager shall not be
responsible for any Hazardous Wastes present on the Property prior to the Effective Date hereof, unless deposited thereon by Property Manager, nor shall Property Manager be responsible for any Hazardous Wastes brought onto the Property by a person
other than Property Manager, its agents or employees. Property Manager shall immediately notify Owner of any notice received by Property Manager from any governmental authority of any actual or threatened violation of any applicable laws,
regulations or ordinances governing the use, storage or disposal of any Hazardous Wastes and shall cooperate with Owner in responding to such notice and correcting or contesting any alleged violation at Owner’s expense. 

(b)        Property Manager shall provide its employees, agents,
consultants, governmental entities and the public with any notices or disclosures concerning Hazardous Wastes associated with the Property required to be delivered by Property Manager under any applicable laws, including without limitation, any
notices or disclosures concerning Hazardous Waste which Property Manager has received from Owner. Owner shall have the right to review such notices and disclosures before their distribution or submission by Property Manager and shall have the right,
but not the obligation, to prescribe the form and content of any such notices or disclosures as long as the form and content prescribed by Owner comply with all applicable laws relating to such notices or disclosures. Owner shall provide Property
Manager with any notices or disclosures concerning Hazardous Waste associated with the Property required to be delivered by Owner under any applicable laws. 

  
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 (c)        Without
limiting any other indemnification obligations provided by law or specified in this Agreement, Property Manager shall indemnify, defend (at Property Manager’s sole cost and expense and with legal counsel approved by Owner which approval shall
not be unreasonably withheld) and hold harmless the Owner, its agents, employees and contractors from and against any and all claims, demands, losses, damage, disbursements, liabilities, obligations, fines, penalties, actions, causes of action,
suits, costs and expenses, including without limitation, reasonable attorneys’ fees and costs, and all other professionals’ or consultants’ expenses incurred in investigating, preparing for, serving as a witness in, or defending any
action or proceeding, whether actually commenced or threatened, or in removing or remediating any Hazardous Wastes on, under, from or about the Property, arising out of or relating to, directly or indirectly, Property Manager’s breach of any of
the terms of this Section 5.03. This indemnity shall survive termination of this Agreement. 
 5.04.  
Asbestos and Similar Compliance Matters. If the Property is subject to the Occupational Safety and Health Administration’s regulations relating to asbestos, or to any state law or regulation relating to asbestos or to any state law or
regulation relating to carcinogenic or toxic chemicals, Property Manager shall, at Owner’s expense, comply with such laws and regulations as they relate to the Property. 

 

	ARTICLE 6.	FINANCIAL MATTERS. 

 6.01.   Books and Records. Property Manager shall cause to be kept for Owner at the Records Office books and records of the Property, pursuant to methods and systems, and in form and
substance, approved by Owner and Legacy, showing all receipts, expenditures and all other records necessary or convenient for the recording of the results of operations of the Property. Such books are to be maintained utilizing the Yardi accounting
software hosted by Legacy. Such original books and records shall be kept in a secure location at the Records Office and shall be open to inspection by Owner and Legacy and their representatives during normal business hours and Property Manager
agrees to cooperate in making such books and records available for inspection. Upon the effective date of any termination of this Agreement, all of such books and records shall be delivered forthwith to Owner so as to ensure the orderly continuance
of the operation of the Property. Cut-off date for books on a monthly basis will be the 23nd day of each month or as modified by Legacy. 
 6.02.   Reports. 

(a)        On or before the last day of each month, Property
Manager shall provide such reports and data to Owner and Legacy as shall be required from time to time by Owner. Without limitation, Property Manager shall provide the following to Owner for the current calendar month: 

(i)        A detailed report of all monies collected (identified
by tenant or other source) which shall include, but not be limited to, rents collected (including laundry or other vending income, garage or parking income, percentage rent and other amounts payable under any retail leases, if any), rents prepaid
beyond the current month, and security deposits collected, and of vacancies and delinquent rents. 

  
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 (ii)       A detailed
report of all expenses paid. 
 (iii)      A comparison of the
current month and year-to-date account of actual revenue and expenses to budgeted amounts; calculations of monthly and year-to-date variances from the Approved Operating and Capital Budgets, appropriate descriptions of any significant monthly or
year-to-date variances, and, if requested by Owner, a revised annualized projection of monies to be collected and expenses to be paid for the balance of the calendar year. 

(iv)     A written report describing any material changes in the Property which
occurred during the month or are anticipated to occur. 

(v)      A reconciliation of amounts receivable or due to Owner
accompanied by payment of same. 
 (vii)    Any other special information
as required from time to time by Owner. 
 (b)    Property Manager shall
provide a monthly management report to be submitted with the applicable monthly financial statements which shall contain without limitation, the recommendations of Property Manager regarding the physical condition or operation of the Property and
leasing status reports (which shall include a list of retail leases, if any, executed, written lease proposals, security deposits and rents received, and leasing commissions earned on each retail lease). In addition, if applicable, on or before
January 30 after the end of each calendar year, Property Manager shall at its sole cost and expense submit to Owner an annual report summarizing all retail leasing activities, if any. 

(c)    Periodically, Property Manager shall furnish to Owner as reasonably requested:

 (i)      Market surveys and any other tenant information in
accordance with Section 2.02(q) above. 
 (ii)     Reports
covering on-site physical inspections and operating reviews. 
 (iii)    A
current inventory of personal property and equipment used in connection with the Property. Such an inventory shall be submitted to Owner no later than thirty (30) days prior to the end of each calendar year. 

6.03.   Audit. Owner shall have the right to conduct an audit of the Property’s operations at any time. Property
Manager shall promptly correct all weaknesses and errors disclosed by Owner’s audits, and shall timely inform Owner in writing of all corrective actions taken. Owner’s audit shall be at Owner’s expense unless an error is discovered
attributable to the services provided under this Agreement that is equal to or greater than two percent (2%) of annual gross receipts of the Property for the period audited, in which case Property Manager shall bear the full cost of the subject
audit. Any adjustments in amounts due and owing from Owner or Property Manager shall be paid within 

  
 15 

 
fifteen (15) calendar days following Owner’s receipt of the audit. 
 6.04.   Other Reports and Statements. Property Manager shall furnish to Owner, as promptly as practicable, such other reports, statements or other information with respect to the
operations of the Property as Owner may from time to time reasonably request. 
 6.05.   Contracts and Other
Agreements. Property Manager shall maintain at the Records Office one original (or a copy, if no original is available) of all contracts, occupancy leases, lease abstracts, tenant income certifications, equipment leases, maintenance agreements
and all other agreements relating to the Property. 
 6.06.   Final Accounting. Following termination of this
Agreement, whether by expiration of the term hereof or sooner, Property Manager shall be responsible for preparing a final accounting within thirty (30) days after the effective date of said termination. Such final accounting shall set forth
all current income, all current expenses, and all other expenses contracted for on Owner’s behalf but not yet incurred in connection with the Property. The final accounting shall also include all other items reasonably requested by Owner.
Property Manager shall be entitled to receive a prorated share of its Management Fee to the date of termination and all earned but unpaid Construction Supervision Fees. 
 6.07.   Tax Returns. Property Manager shall file all tax returns for all sales taxes, payroll taxes and other taxes directly related to the Property; excluding, however, federal and state
income tax returns of Owner. 
 6.08.   Certification. All financial statements shall be certified as true and
correct in all material respects by Property Manager.. 
  

	ARTICLE 7.	BANK ACCOUNTS. 

7.01.   Property Accounts. 

(a)        All funds received by Property Manager derived from
the operation of the Property, as well as working capital furnished by Owner, shall be deposited in an account (the “Property Bank Account”) in the Property’s name, as established by Legacy, which such account will be in
compliance with applicable law. All funds so deposited shall be deemed to be trust funds held for the benefit of Owner. Legacy shall establish another custodial and/or trust account as required by applicable law or the Owner for the deposit of
tenant security deposits (the “TSD Account”). 

(b)        No non-Property funds shall be commingled with the
funds in the Property Bank Account or TSD Account (collectively, the “Accounts”). 
 (c)        Property Manager may not, under any circumstances, write a check transfer funds from the Accounts. Only those persons specifically authorized by Owner
shall have authority to write checks from the Accounts. 
 7.02.   Expenses Paid by Owner. The following costs are to be
paid directly by Owner (or Legacy, 

  
 16 

 
acting on Owners behalf): 

(a)        Any and all costs necessary for the management,
operation and maintenance of the Property, provided such costs are provided for and are within the limits of the Approved Operating Budget or specifically approved in writing by Owner; 

(b)        Capital expenditures provided for in the Approved
Capital Budget or authorized in writing by Owner and directed by Owner to be incurred by Property Manager; and 
 (c)        Any and all costs necessary for emergency expenses as provided in Section 2.02(f). 

Property Manager shall not be obligated to make any advance to or for the account of Owner or to pay any sums except as
otherwise provided in this Agreement. 
  

	ARTICLE 8.	INSURANCE AND INDEMNITY. 

8.01.   INDEMNIFICATION. 

(A)    PROPERTY MANAGER AGREES TO AND SHALL, COMPLETELY AND TO THE MAXIMUM EXTENT
PERMITTED BY LAW, INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO OWNER), PROTECT AND HOLD OWNER AND ITS RESPECTIVE PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AUTHORIZED SUCCESSORS, AUTHORIZED ASSIGNS AND
AGENTS HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, ACTIONS, FINES, PENALTIES, LIABILITIES, LOSSES, TAXES, DAMAGES, INJURIES AND EXPENSES (INCLUDING, WITHOUT LIMITATION, ACTUAL ATTORNEYS’, CONSULTANTS’ AND EXPERT WITNESS’
FEES, AND DEFENSE COSTS AT BOTH THE TRIAL AND APPELLATE LEVELS) (COLLECTIVELY, “DAMAGES”) IN ANY MANNER RELATED TO, ARISING OUT OF OR RESULTING FROM (I) ANY FAILURE OF PROPERTY MANAGER TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT
CAUSING DAMAGE TO OWNER, BUT ONLY TO THE EXTENT SUCH DAMAGES ARE NOT COVERED BY THE INSURANCE MAINTAINED BY OWNER UNDER SECTION 8.05 BELOW, (II) ANY ACTS OF PROPERTY MANAGER BEYOND THE SCOPE OF ITS AUTHORITY UNDER THIS AGREEMENT, (III) ANY
NEGLIGENCE, WILLFUL MISCONDUCT OR OTHER WRONGFUL OR INTENTIONAL ACTS OR OMISSIONS OF PROPERTY MANAGER, BUT WITH REGARD TO NEGLIGENCE OF PROPERTY MANAGER (AS OPPOSED TO GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR OTHER WRONGFUL OR INTENTIONAL ACTS OR
OMISSIONS) ONLY TO THE EXTENT SUCH DAMAGES ARE NOT COVERED BY THE INSURANCE MAINTAINED BY OWNER UNDER SECTION 8.05 BELOW, (IV) ANY INJURY, DAMAGE OR DEATH TO PROPERTY MANAGER, ITS OFFICERS, DIRECTORS, PARTNERS,

  
 17 

 
EMPLOYEES, AGENTS AND OTHER REPRESENTATIVES, AND (V) ANY INJURY, DAMAGE AND/OR DEATH TO ANY INDEPENDENT CONTRACTORS OF PROPERTY MANAGER. THE OBLIGATIONS OF PROPERTY MANAGER UNDER THIS
SUBSECTION (A) SHALL APPLY ONLY TO THE EXTENT DAMAGES OF AN INDEMNIFIED PARTY ARE NOT FULLY PAID BY OWNER’S COMMERCIAL GENERAL LIABILITY INSURANCE DESCRIBED BELOW IN SECTION 8.05(B). NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
AGREEMENT TO THE CONTRARY, PROPERTY MANAGER’S OBLIGATIONS UNDER THIS SECTION 8.01 SHALL SURVIVE THE EXPIRATION, TERMINATION OR CANCELLATION OF THIS AGREEMENT, AND SHALL BIND ANY AND ALL OF THE HEIRS, SUCCESSORS, ASSIGNS, TRANSFEREES AND
REPRESENTATIVES OF PROPERTY MANAGER. THE RIGHTS OF OWNER UNDER THIS SECTION 8.01 SHALL ALSO INURE TO THE BENEFIT OF ANY AND ALL OF THEIR PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, TRUSTEES, HEIRS,
BENEFICIARIES, TRUSTS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES, AND TO THE BENEFIT OF ANY AND ALL PERSONS AND LEGAL ENTITIES WHO ARE, COULD BE OR ARE ALLEGED TO BE, LIABLE FOR THE OBLIGATIONS OF OWNER OR SUCH PRINCIPALS, OFFICERS,
DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, TRUSTEES, HEIRS, BENEFICIARIES, TRUSTS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES. 

(B)        OWNER AGREES TO AND SHALL, COMPLETELY AND TO THE
MAXIMUM EXTENT PERMITTED BY LAW, INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO PROPERTY MANAGER), PROTECT AND HOLD PROPERTY MANAGER (AND ITS EMPLOYEES, AGENTS, SUCCESSORS, ASSIGNS AND TRANSFEREES) HARMLESS FROM AND AGAINST ANY AND ALL
DAMAGES IN ANY MANNER RELATED TO OR ARISING OUT OF PROPERTY MANAGER’S PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT WHICH ARE (A) WITHIN THE SCOPE OF ITS AUTHORITY UNDER THIS AGREEMENT, AND (B) NOT WITHIN THE SCOPE OF PROPERTY
MANAGER’S INDEMNITY SET FORTH IN SECTION 8.01(A) ABOVE. 

(C)        THE RIGHTS AND OBLIGATIONS OF INDEMNITY PROVIDED IN
THIS SECTION 8.01 SHALL NOT BE EXCLUSIVE AND SHALL BE IN ADDITION TO SUCH OTHER RIGHTS AND OBLIGATIONS AS OTHERWISE EXIST INDEPENDENT OF THE PROVISIONS OF THIS SECTION 8.01. 
 8.02.    Property Manager’s Insurance Responsibility. 
 (a)        The Property Manager shall maintain during the term of this Agreement, and any extensions or renewals thereof, each of the following insurance coverages
with deductibles, if applicable: 

  
 18 

	 	(i)	Workers’ Compensation Insurance at no less than statutory requirements including employer’s liability with a limit of not less than $1,000,000 each accident
for bodily injury accident and $1,000,000 each employee and policy limit for bodily injury by disease. 

  

	 	(ii)	Non-Occupational Disability Insurance when required by law, if applicable. 

(iii)    Commercial General Liability Insurance with a minimum combined bodily injury
and property damage per occurrence limit of liability of $5,000,000, a products-completed operations aggregate limit of $5,000,000 and a general aggregate limit of $10,000,000. Limits of liability may be satisfied through the maintenance of a
combination of primary and umbrella/excess liability policies. 

(iv)    Automobile Liability Insurance covering owned, hired and nonowned vehicles,
separate coverage in an amount not less than $1,000,000 combined single limit for bodily injury and property damage of $1,000,000 each accident. 

(v)    Errors and Omissions Insurance coverage in an amount not less than $1,000,000
each claim and general aggregate. 
 (b)        Property
Manager shall promptly provide Owner no later than three (3) days after the Effective Date with certificates of insurance or other satisfactory documentation which evidence that all required insurance is in full force and effect. Upon request,
Property Manager shall provide Owner with a copy of the foregoing insurance policies. The insurance as required in Subsections 8.02(a)(i), (ii) and (v) to be maintained by Property Manager shall provide that the insurer shall provide
to Owner thirty (30) days’ advance notice of cancellation or material change. The liability policies required by Subsections 8.02(a)(iii) and (iv) shall provide that the insurer shall provide to Owner thirty (30) days’
advance notice of cancellation or material change and shall name Owner and its principals, officers, directors, shareholders, partners, members, trustees, beneficiaries and employees as additional insureds. All liability policies shall be written to
apply to all bodily injury, property damage, personal injury and other covered loss, however occasioned, which occurred or arose (or the onset of which occurred or arose) in whole or in part during the policy period. Such liability policies also
shall contain endorsements including cross-liability and waiver of subrogation, and shall contain such other endorsements as may be reasonably required by Owner. The liability policies required by Subsections 8.02(a)(iii) shall include
broad form contractual liability insurance coverage. 
 8.03.    Contract Documents; Indemnity
Provisions. Property Manager shall use its best efforts to include in service and supply contracts prepared or executed by Property Manager respecting the Property provisions to the effect that the other contracting party shall, to maximum
extent permitted by law, indemnify, defend (with counsel reasonably acceptable to Owner), protect and hold harmless Property Manager and Owner and their respective principals, officers, directors, shareholders, partners, members, managers, trustees,
beneficiaries and employees from and against any and all 

  
 19 

 
Damages in any manner related to, arising out of and/or resulting from any damage to or injury to, or death of, persons or property caused or occasioned by or in connection with or arising out of
any acts or omissions of said contracting party or its employees or agents or contractors and agree that no principal, officer, director, shareholder, partner, member, manager, investor, trustee, officer, employee or agent of Owner shall be
personally liable for any of the obligations of Owner hereunder. 
 8.04.   Ratings of Insurance
Companies. All insurance required to be carried by Property Manager shall be written with companies having a policyholder and asset rate, as circulated by Best’s Insurance Reports, of A-:VIII or better unless an exception is approved by
Owner. 
 8.05.   Owner’s Insurance Responsibility. Owner shall maintain during the term of this
Agreement, and any extensions thereof, each of the following insurance coverages which shall be primary and noncontributory insurance with respect to to the Property: 

(a)        All-Risk Property Damage Insurance and Loss of Rents
Insurance coverage on the Property. 

(b)        Commercial General Liability Insurance coverage with a
minimum general aggregate limit of not less than $10,000,000. Property Manager shall be designated an insured under Owner’s commercial general liability insurance policy while acting within the scope of its authority as Owner’s property
manager. All other terms and conditions of this Agreement (including, without limitation, the indemnification provisions of Section 8.01 and Property Manager’s obligation to maintain insurance described in Section 8.02) shall not be
affected by this Section 8.05(b). 
 8.06.   Property Manager’s Duties in Case of
Loss.   Property Manager shall: 

(a)        Immediately notify Owner of any fire or other damage
to the Property; and in the event of any serious damage to the Property or any releases of hazardous materials or contaminants, telephone Owner so that an insurance adjustor may view the Property before repairs are started, but in no event shall
Property Manager settle any losses, complete loss reports or adjust losses on behalf of Owner or meet with any federal, state or local regulatory agency without the prior written consent of Owner. 

(b)        Promptly notify Owner of any personal injury or
property damage occurring to or claimed by any tenant or third party on or with respect to the Property; and immediately forward copies to Owner of any summons, subpoena or other like legal document served upon Property Manager relating to actual or
alleged potential liability of Owner, Property Manager or the Property. 
  

	ARTICLE 9.	RELATIONSHIP OF PARTIES and REPRESENTATIONS and WARRANTIES. 

 9.01.   Nature of Relationship. In taking any action pursuant to this Agreement, Property Manager 

  
 20 

 
will be acting only as an independent contractor, and nothing in this Agreement, expressed or implied, shall be construed as creating a partnership or joint venture or an employment relationship
or that of principal and agent between Property Manager (or any person employed by Property Manager) and Owner or any other relationship between the parties hereto except that of property owner and independent contractor. 

9.02.   Communications Between Parties.    Owner shall rely on Property Manager to direct and
control all operations at the Property; provided, however, Owner reserves the right to communicate directly with the manager specified in Subsection 4.01(b)(i), Property Manager’s accountant(s) working on Property matters, all tenants and
tenants’ representatives, all lease prospects, all advertising, management, cleaning and servicing firms doing work for the Property, and all parties contracting with Owner or Property Manager with respect to the Property. 

9.03.   Relationship of Owner and Property Manager with Respect to Leasing. Property Manager shall not be entitled to
any commission or other fee in connection with the leasing of apartment units at the Property, except as specifically provided in Article 3 hereof. On-site employees of Property Manager shall be entitled to receive incentive leasing bonuses as may
be included in the Approved Operating Budget. Property Manager shall procure references from prospective tenants, investigate such references, and use its best judgment in the selection of prospective tenants. As soon as practicable prior to any
residential unit vacancy, Property Manager shall prepare rental listings and attempt to find a new tenant for such unit. Prior to entering into any leasing arrangement with any retail tenant, if any, Property Manager shall prepare and submit to
Owner for its approval a written lease proposal setting forth proposed leasing terms, including, without limitation, duration of the lease, rental rate, tax and operating expense escalations, consumer price index adjustments, common area maintenance
charges or other rental adjustments, rent and/or parking/other concessions, insurance requirements, expansion and renewal rights, tenant improvement allowance, the desired mix of tenants, and policy with respect to guarantees, and such other matters
as Owner deems appropriate. The parties intend that Property Manager shall be obligated to give available residential units and any retail space at the Property exposure at least equal to the exposure Property Manager gives other available
residential units and retail space in similar projects owned, leased, managed or operated by Property Manager or an Affiliate, and Owner shall have the right to terminate this Agreement pursuant to Section 10.02(e) below if Property Manager
fails so to do. The parties also intend that the Property Manager shall be obligated to use reasonable efforts to retain existing tenants at the Property, and Owner shall have the right to terminate this Agreement pursuant to Section 10.02(e)
below if Property Manager fails so to do. 
 9.04.   No Sales Brokerage Agreement. There are no sales brokerage
agreements between Owner and Property Manager; Property Manager has no brokerage agreement or understanding (exclusive or otherwise) with respect to the sale of all or part of the Property on behalf of Owner; and in the event that Owner effects a
sale of the Property, whether on its own or through the use of others, brokers or otherwise, Property Manager shall be entitled to no compensation, fee or commission or other payment on account of such sale under this Agreement. Unless specifically
approved by Owner, Property Manager shall have no right to obligate Owner for the payment of any fees or commissions to any outside real estate agent or broker for tenant leases. Except as expressly provided to the contrary elsewhere herein or as
otherwise approved by Owner in writing, Property Manager shall be fully responsible for any compensation due employees of Property Manager and 

  
 21 

 
any real estate brokers cooperating with Property Manager. Property Manager shall indemnify and hold Owner harmless with respect to any action, proceeding, claim, liability, loss, cost or expense
(including reasonable attorneys’ fees) arising in connection with any claim for brokerage or finder’s fees or any other like payment payable as a result of a breach under this Section 9.04 by Property Manager. Property Manager’s
obligations with respect to the foregoing indemnity shall survive the expiration or earlier termination of this Agreement. 

9.05.   Confidentiality. Except as may be otherwise required by law, Property Manager and Owner shall maintain the
confidentiality of all matters pertaining to this Agreement and all operations and transactions relating to the Property. 

9.06.   Property Manager Not to Pledge Owner’s Credit. Property Manager shall not, except in the purchase of goods,
wares, merchandise, materials, supplies and services reasonably required in the ordinary course of business in the operation of the Property or as may be otherwise required in the performance of its obligations under this Agreement and in either
case as previously approved by Owner, pledge the credit of Owner; nor shall Property Manager, in the name or on behalf of Owner, borrow any money or execute any promissory note, installment purchase agreement, bill of exchange or other obligation
binding on Owner or the Property. 
 9.07    Representations and Warranties. 

(a)        Property Manager represents and warrants that
(i) Property Manager has full power, authority and legal right to execute, deliver and perform this Agreement and to perform all of its obligations hereunder and (ii) the execution, delivery and performance of all or any portion of this
Agreement do not and will not (x) require any consent or approval from any governmental authority, (y) violate any provisions of law or any government order or (z) conflict with, result in a breach of, or constitute a default under,
the charter or bylaws of Property Manager or any instrument to which Property Manager is a party or by which it or any of its property is bound. 

(b)        Owner represents and warrants that it has full power,
authority and legal right to execute, deliver and perform this Agreement. 

(c)        Property Manager acknowledges and agrees that Owner is
relying upon the representations and warranties set forth in Sections 9.07 (a) in entering into this Agreement, and Owner acknowledges and agrees that Property Manager is relying upon the representations and warranties set forth in
Section 9.07 (b) in entering into this Agreement. 
 ARTICLE
10.          TERMINATION. 
 10.01.  Termination by Owner
Without Cause. This Agreement may be terminated by Owner at any time without cause and upon written notice to Property Manager by Owner, effective thirty (30) days from the date of such notice, which shall be considered the effective date
of termination. 
 10.02.  Termination by Owner for Cause. This Agreement may be terminated by Owner (or the

  
 22 

 
Property Manager may be required by Owner to change its personnel assigned as Property Manager for the Property) at any time during the term hereof upon written notice to Property Manager
effective immediately for any of the following causes: 

(a)         If Property Manager shall suspend or discontinue
business; 
 (b)         If a court shall enter a decree
or order for relief in respect of Property Manager in an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal, state or foreign bankruptcy, insolvency or other similar law, or appoint a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Property Manager or for any substantial part of its property, or for the winding-up, dissolution or liquidation of its affairs, and such decree or order shall
continue unstayed and in effect for a period of sixty (60) consecutive days or if Property Manager shall consent to any of the foregoing; 
 (c)         If Property Manager shall commence a voluntary case or action under the federal bankruptcy laws, as now or hereafter constituted, or any other
applicable federal or state bankruptcy insolvency or other similar law, or consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Property Manager or
for any substantial part of its property, or make any assignment for the benefit of creditors, or admit in writing that it is unable, or fail generally to pay its debts as such debts become due, or take action in furtherance of any of the foregoing;

 (d)         If Property Manager is grossly negligent
or engages in willful misconduct with respect to its duties or obligations to Owner under this Agreement; or 
 (e)         If Property Manager commits any other material default in the performance of any of its obligations under this Agreement, unless such default is cured
with thirty (30) days after written notice of such default is given to Property Manager, or, if not curable within thirty (30) days, commenced within such thirty (30) days and diligently prosecuted to completion. 

10.03.  Termination by Property Manager. This Agreement may be terminated by Property Manager, without cause, upon
ninety (90) days’ written notice to Owner. This Agreement may be terminated by Property Manager for cause if Owner commits any material default in the performance of any of its obligations under this Agreement, including, without
limitation, its obligation to pay to Property Manager any fees due and payable under Section 3.01 above, and such default shall continue for a period of thirty (30) days after notice thereof by Property Manager to Owner. 

10.04.  Orderly Transition. In the event of any termination or expiration of this Agreement, Property Manager shall use
its best efforts to effect an orderly transition of the management and operation of the Property to an agent designated by Owner and to cooperate with such agent. Upon termination or expiration of this Agreement, Property Manager’s rights, if
any, to withdraw funds from any account which contains funds collected in connection with the Property shall terminate. Property Manager shall remove all signs that it may have placed at the Property containing its name and

  
 23 

 
repair any resulting damage. In addition, Property Manager shall deliver the following to Owner on or before thirty (30) days following the termination or expiration date: 

(a)        A final report, reflecting the balance of income and
expenses for the Property as of the date of termination or expiration; and 

(c)        All keys, property, supplies, records, contracts,
drawings, leases and correspondence, in existence at the time of termination or expiration and all other papers or documents pertaining to the Property. All data, information and documents shall at all times be the property of Owner. 

10.05.  Rights Which Survive Termination or Expiration.   Termination and/or expiration of this Agreement
shall in no event terminate or prejudice any right arising out of or accruing in connection with the terms of this Agreement attributable to events and circumstances occurring prior to termination or expiration of this Agreement, and/or all rights
and obligations specified in this Agreement to survive such termination and/or expiration. 
 ARTICLE
11.             MISCELLANEOUS. 
 11.01.  Governing
Law.   This Agreement shall be construed and enforced in accordance with the laws of the State in which the property is located without going effect to the conflict of law principles of such State. 

11.02.  Table of Contents and Headings.   The Table of Contents preceding this Agreement and the headings of
the various articles and sections of this Agreement have been inserted for convenient reference only and shall not have the effect of modifying or amending the express terms and provisions of this Agreement. 

11.03.  Entire Agreement.   This Agreement contains the entire agreement between the parties with regard to
the subject matter hereof, and this Agreement shall not be amended, modified or cancelled except in writing signed by both parties or by their duly authorized agents. 
 11.04.  Successors and Assigns.   All terms, conditions and agreements herein set forth shall inure to the benefit of, and be binding upon the parties, and any and all of their
respective permitted heirs, successors, representatives and assigns. Notwithstanding the foregoing, this Agreement may not be assigned by Property Manager nor shall Property Manager delegate any of its duties hereunder without Owner’s prior
written consent, which consent may be granted or withheld in Owner’s sole and absolute discretion. Any attempted assignment or delegation by Property Manager hereunder in violation of this Section 11.04 shall be null and void and of no
force or effect. 
 11.05.  Waiver.   The failure of either party to insist upon a strict performance
of any of the terms or provisions of this Agreement or to exercise any option, right or remedy herein contained, shall not be construed as a waiver or as a relinquishment for the future of such terms, provisions, option, right or remedy, but the
same shall continue and remain in full force and effect. No waiver by either party 

  
 24 

 
of any terms or provisions hereof shall be deemed to have been made unless expressed in writing and signed by such party. In the event of consent by Owner to an assignment of this Agreement, no
further assignment shall be made without the express written consent of Owner. 
 11.06.  Severability.
Whenever possible each provision of this Agreement shall be interpreted in such manner as to be effective and valid under all applicable laws. However, if any provision of this Agreement is invalid under any applicable law, such provision shall be
ineffective only to the extent of such invalidity without invalidating the remaining provisions of this Agreement and, to the fullest extent possible, this Agreement shall be interpreted so as to give effect to the stated written intent of the
parties. 
  

	11.07.  Time.	   Time is of the essence of this Agreement. 

 11.08.  Attorneys’ Fees. In the event of any legal or equitable proceeding for enforcement of any of the terms or conditions of this Agreement, or any alleged disputes, breaches,
defaults or misrepresentations in connection with any provision of this Agreement, the prevailing party in such proceeding, or the non-dismissing party where the dismissal occurs other than by reason of a settlement, shall be entitled to recover its
reasonable costs and expenses, including without limitation reasonable attorneys’ fees and costs, paid or incurred in good faith at the pre-trial, trial and appellate levels, and in enforcing any award or judgment granted pursuant thereto. Any
award, judgment or order entered in any such proceeding shall contain a specific provision providing for the recovery of attorneys’ fees and costs incurred in enforcing such award or judgment, including without limitation (a) post-award or
post-judgment motions, (b) contempt proceedings, (c) garnishment, levy, and debtor and third party examinations, (d) discovery and (e) bankruptcy litigation. The “prevailing party”, for purposes of this Agreement, shall
be deemed to be that party that obtains substantially the result sought, whether by dismissal, award or judgment. 

11.09.  Further Acts. Owner and Property Manager shall execute such other documents and perform such other acts as may
be reasonably necessary and/or helpful to carry out the purposes of this Agreement. 
 11.10.  No Advertising.
No publication, announcement or other public advertisement of the name of Owner in connection with the Property shall be made by Property Manager, except as may be required by applicable law or with the prior written consent of Owner. 

11.11.  Signs. Signs and building directories are prohibited unless specifically approved by Owner. Property Manager may
place reasonable leasing signs as required with the prior approval of Owner. All signs must meet all requirements of local sign codes and ordinances. 
 11.12.  Owner Exculpatory Clause; Waivers of Jury Trial and Punitive Damages. Property Manager agrees that no principal, officer, director, shareholder, partner, member, investor,
manager, representative, trustee, officer, employee or agent of Owner or of its members or partners shall be personally liable for any of the obligations of Owner hereunder and that Property Manager must look solely to the assets of Owner for the
enforcement of any claims against Owner arising hereunder. In addition, Property Manager hereby waives in connection with any such claim any right it may have to a jury trial and any punitive or consequential damages. 

  
 25 

 11.14.  Notices. Any notice required or desired to be given under this
Agreement shall be given in writing and shall be deemed sufficiently given and served for all purposes when personally delivered or delivered by any generally recognized courier, or by certified or registered mail, addressed to the appropriate
address shown below. Any notice given by depositing it in the United States mail as certified or registered mail, postage prepaid, shall be deemed given five (5) business days after deposit. 

 

			
	 Owner:
	    	 KBS Legacy Partners Poplar LLC
 c/o KBS Capital Advisors, LLC
 620 Newport Center Drive, Suite 1300

Newport Beach, California 92660

Attn:  David Snyder

		
	 With a copy to:
	    	 KBS Legacy Partners Poplar LLC
 c/o Legacy Partners Residential, Inc.
 7525 SE 24th Street, Suite 180

Mercer Island, WA 98040

Attention:  Kerry Nicholson

		
	 With a copy to:
	    	 KBS Legacy Partners Poplar LLC
 c/o Legacy Partners Residential, Inc.
 4000 E. Third Avenue, Sixth Floor

Foster City, California 94404

Attn:  W. Dean Henry/Guy K. Hays

		
	 Property Manager:
	    	 RMK Management Corporation

1 N Franklin
 Suite 700

Chicago, IL 60606
 Attn:  Diana J.
Pittro

		
	 With a copy to:
	    	 RMK Management Corporation

1 N Franklin
 Suite 700

Chicago, IL 60606
 Attn:  Anthony Rossi
Sr.

		
	 Legacy:
	    	 Legacy Partners Residential, Inc.
 4000 E. Third Avenue, Sixth Floor
 Foster City, California 94404

Attn:  Carol Foster

		
	 With a copy to:
	    	 Legacy Partners Residential, Inc.
 4000 E. Third Avenue, Sixth Floor
 Foster City, California 94404

  
 26 

			
		    	Attn:  W. Dean Henry/Guy K. Hays

 11.15.  Counterparts.  This Agreement may be executed in any number of
counterparts and each such counterpart shall be deemed to be an original instrument, but all such executed counterparts together shall constitute one and the same instrument. 

 
 [remainder of page intentionally left blank] 

  
 27 

 IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be executed as of the Effective Date. 
  

											
	 OWNER:
	  	KBS LEGACY PARTNERS POPLAR LLC, a Delaware
		  	limited liability company
			
		  	By:	  	KBS LEGACY PARTNERS PROPERTIES
		  		  	 LLC, a Delaware limited liability company, its
 sole member

				
		  		  	By:	 	KBS LEGACY PARTNERS LIMITED
		  		  		 	  PARTNERSHIP, a Delaware limited
  partnership, its sole member

					
		  		  		 	By:	    	KBS LEGACY PARTNERS
		  		  		 		    	APARTMENT REIT, INC., a
		  		  		 		    	 Maryland corporation, its sole
 general partner

					
		  		  		 		    	By: /s/ Guy K. Hays                
		  		  		 		    	Name: Guy K. Hays
		  		  		 		    	Title: Executive Vice President
			
	 PROPERTY MANAGER:
	  		  	RMK MANAGEMENT CORPORATION, an
		  		  	Illinois corporation
			
		  		  	By: /s/  Diana
Pittro                      
		  		  	Name: Diana
Pittro                      
		  		  	Its:       Executive Vice President

  
 28 

 Apartment Transfer Request Form 

Resident information: 
  

			
	 Today’s date:        /
        /         
	 	

			
	
Your name:                     
                                         
                                         
                                         
                                         
                                         
      

			
	
Name(s) of other residents:                 
                                         
                                         
                                         
                                         
                       

			
	
Home phone:                     
                                         
                                  
	 	Work phone:                          
                                         
                           
	
Original move-in date:                  
                                         
                      
	 	Current lease-end date:                       
                                         
              
		
	Transferring from:	 	Transferring to:
	
Apartment number:                    
                                         
                          
	 	Apartment number:                         
                                         
                 
	
Address:                      
                                         
                                         
  
	 	Address:                            
                                         
                                
	City:
                                        
 State:                                  Zip:  
                   	 	City:                            
            State:                           
      Zip:                    
	Requested move-out date:                        
                                         
          	 	Requested move-in
date:                                        
                                  

 Leasing Consultant Assisting you in the transfer
process:                                      
                                         
                                         
                             
 Resident Responsibilities: 

	•	 	 A 30-day notice to vacate and relocate/transfer is required and you must have lived in your current apartment for at least 6-months. Submitting this
Request serves as your written notice of intent to vacate your current apartment on the move-out date indicated on this form. If you fail to move out on the agreed upon move-out date, you will assume liability for increased holdover rents and one
month’s lease extension in the event of unauthorized holdover. 

  

	•	 	 If multiple residents are on the lease, a notice to vacate will need all lease holders signatures to proceed with apartment transfer.

  

	•	 	 If the current lease contract has not expired, there will be a non-refundable apartment transfer fee of $750 plus, submission of a new refundable
security deposit and or surety bond is required before your move in date. 

  

	•	 	 Once we receive this signed Request, RMK may clean, repair and relet your current apartment for occupancy by a new resident on the day after the
move-out date indicated on this form. 

  

	•	 	 You must sign a new 12 month lease term for the apartment to which you are moving, no exceptions. 

Your move-out inspection is scheduled for:
                                         
                                         
                                         
                                         
                 
  

							
	  
	    	  

	Resident signature	  	Date	    	Community Manager Signature Approval	  	Date

  

	 	*	Residents are considered in “good standing” based on rental payment history and community policies compliance. 

 

	
	  

(OFFICE USE ONLY)

	
•      Resident in good standing: Y      
N      (rental payment history      policy compliance      preliminary apartment
inspection      )

	
•      Current rent payment (includes all monthly charges, i.e. W/D, pets):
$                

	
•      Was an up-front rental concession issued? Y      
N       If yes, specify amount $                

	
•      Refundable security deposit:
$                

	
•      Lease transfer fee:
$                (if applicable)

	
•      Credit currently due on account:
$                

	
•      Balance/Credit
explanation:                                       
                                         
                                         
                                         
                                

	
•      Balance currently due on account:
$                

	 •      Total Due $                . This amount must be paid in full prior to
moving.
  

 LEASE CONTRACT UTILITY ADDENDUM FOR 

WATER/WASTEWATER METERING AND TRASH REMOVAL ALLOCATION AND BILLING 
 1. Your rent payments made under this lease (no matter duration of lease) do not include a payment for water, wastewater or trash removal service. Instead, by this agreement, you (resident)
agree to the water/wastewater and trash removal allocation format outlined below. You agree to pay said bill by the date specified on the bill. You agree to submit payment to the address specified on the bill. We (owner) will be responsible for
paying the master metered water and wastewater costs as well as the master trash removal bill and wi|l be responsible for paying any penalties, late fees, or interest pertaining to said accounts. 

2. For the duration of your lease we are authorized to allocate a portion of the property’s water/wastewater and trash removal costs using the
following format: 
  

	 	•	 	 Your bill for water and wastewater cost will be calculated by recording your usage of water and applying the then current rates for water and
wastewater as charged to the property by the local billing authority 

  

	 	•	 	 Your bill for trash removal will be a fixed monthly amount determined by the average monthly trash expense during the proceeding 12 months divided by
the number of units on the property. This amount will be adjusted once annually. 

 3. The cost of providing water/sewer
and trash removal services to the Apartment is considered additional rent. In the event such bill is not paid within 30 days of the due date, such failure to pay, at Management’s election, shall constitute a default under the
lease. Outstanding balances will be deducted from Security Deposit at lease termination. 
 4. A late fee (which may be changed from
time to time) will be added to all delinquent bills and an NSF charge (which may be changed from time to time) will be assessed for any returned checks. A one-time Account Activation fee of $10.00 will be charged to all new accounts.

 5. Resident agrees that an administrative charge (which may be changed from time to time) will be included in the cost of providing,
and billing for, water/wastewater and trash removal service to the Apartment. 
 6. Month to Month Lease. Resident acknowledges that upon
the expiration of their lease, should they elect to continue leasing on a month-to-month basis, they will remain responsible for their water/wastewater and trash removal charges as outlined above. 

7. Management is not liable for any loss or damages Resident incurs as the result of outages, interruptions or fluctuations in utilities provided
to Resident’s apartment unless said loss or damage is a direct result of negligence by Management or its Employees. 
 8. Residents
shall not tamper with, interfere with, adjust or disconnect any water submetering system or device. Violation of this provision is a material breach or default of this Water Metering and Trash Removal Allocation and Billing Lease Addendum and
Lease Contract and, as such, entitles Management to exercise all remedies available under said Lease. 
 9. The undersigned acknowledge they have
read this addendum and accept its conditions. 
  

							
	Signature of Lessee	 		  	Signature of Lessor (As Agent for Owner)	  	
				
	  
	 		  	  
	  	
				
	  
	 		  		  	
				
	  
	 		  		  	
				
	Date:	 		  	Unit #:	  	

 WATER BED ADDENDUM 
 This rider amends the terms of your Residential Occupancy Agreement (Lease) between the undersigned with respect
to                                        
                                         
                                         
                                         
          Apt #         
 I (We) take full
responsibility for all damages to the apartment and surrounding apartments if any should occur as a result of the waterbed. 
 It is a
requirement of the lease that you must carry insurance on your waterbed. In addition, a copy of this policy needs to be attached to the Addendum. 
  

 

					
	Signature of Lessee	 		  	Signature of Lessor (As Agent for Owner)
			
	  
	 		  	                             
                                         

			
	  
	 		  	
			
	  
	 		  	
			
	Date:	 		  	Unit #:

 GARAGE LEASE AGREEMENT 

 

							
		 	LESSEE	  	      LESSOR	  	
	NAME(s):	 		  		  	
		 		  	NAME	  	
	APT. NO.	 		  		  	
	ADDRESS OF PREMISES:	 		  	ADDRESS:	  	
	CITY:	 		  		  	
		 		  	CITY:	  	

  

							
	Stall #	 	Year and Make	 	License Number	 	Window Sticker #
	 	 	 	 	 	 	 

 TO THE RESIDENT: This lease is a binding legal document. By signing it you and the Landlord agree to be bound by
everything it contains. Before signing this lease, make sure all the blanks are filled in. Make sure that you understand what the lease means. After you sign the lease, ask for and keep a copy. 

 

	 	1.	DEFINITIONS Throughout this lease 

	 	a.	“Landlord” means the owner of
                                        
and RMK Management 

 Corporation as agent for
                                        .

	 	b.	“Resident” means the person(s) who has/have signed this agreement. 

	 	c.	“Car” means the car/s listed above. 

  

	 	2.	RENTAL OF PARKING STALL The Resident rents from the Landlord
                             parking stall(s) located in building
                     for
                     months, beginning on
                     and ending on
                    . The total rent is
                     and the Resident must pay the Landlord rent of
                     on the first day of each month in advance. The Resident must make the payment to
“                                        
” ,                             ,
                            . Landlord reserves the right to cancel this lease at any time without
notice if the Lessee’s account is more than (10) days delinquent. 

  

	 	3.	STORAGE ONLY. This agreement is made so that the Resident can store his car. It is not made for any other purpose. No car or vehicle of any kind may be parked in
the building without a
                                        
parking permit. 

  

	 	4.	WINDOW STICKER. The Landlord will issue the Resident a window sticker to identify the Resident’s car. The Resident will put the sticker on the driver’s
side rear window of his car and keep it there as long as this agreement is in effect. The sticker is the Landlord’s property. If the Resident sells or otherwise disposes of his car, the Resident will promptly notify the Landlord of any
replacement car. Within a reasonable time, the Landlord will issue a substitute window sticker. The Resident must put this sticker on the driver’s side rear window of his replacement car and keep it there as long as this agreement is in effect.
Lost window sticker is $10.00. 

  

	 	5.	RIGHT TO ENTER AND LEAVE The Resident has the right to enter and leave at all times. 

 

	 	6.	PARKING The Resident will keep his car between the lines of stalls and will not park it in the aisles. 

 

	 	7.	REPAIR. Except for emergencies, the Resident may not do any repair work in the garage. 

 

	 	8.	SERVICE The Landlord does not have to provide any kind of service to the Resident or his car. 

	 	9.	 RESIDENT’S RISK OF LOSS. The car, its accessories and everything in it are stored at the Resident’s own risk.

  

	 	10.	 LANDLORD NOT RESPONSIBLE The Landlord will not be responsible for loss or damage to the car, its accessories or anything in it by any of the
following causes: 

	 	a.	 Fire; 

	 	b.	 Theft; 

	 	c.	 Storm; 

	 	d.	 Accident; 

	 	e.	 Acts, or failures to act, by other Residents or other customers of the Landlord; or 

	 	f.	 Any other cause beyond the Landlord’s control. 

 

	 	11.	 LANDLORD’S EMPLOYEES. The Landlord’s garage is a self-park garage. The Landlord has not permitted its agents and employees to drive
the Resident’s car. The Landlord will not be responsible for anything that happens if its agent or employees drive the Resident’s car. 

  

	 	12.	 CONDITION OF GARAGE By this agreement, the Landlord is only providing a parking space. The Landlord does not say or promise anything about
the condition of the garage. The Landlord is not responsible for damage or injury caused by any defects in the garage. 

  

	 	13.	 NO TRANSFER The Resident will not transfer his rights and obligations under this agreement to anyone else. The Resident will not let anyone
else park in his space. The fee for a lost/damaged garage door opener is $50.00. 

  

	 	14.	 SIGNATURES READ THIS AGREEMENT BEFORE YOU SIGN IT. I have read this agreement and agree to it. I have received a copy of this agreement.

  

							
	RESIDENT	  		  	 LANDLORD

RMK Management Corporation

As Authorized Agent for

				
	  
	  		  		  	
				
	  
	  		  	By:	  	  

				
	Apartment No. and Telephone	  		  		  	
				
	
                        
                    
	  		  		  	
                         
                       

				
	Date	  		  		  	DateProperty Mangement  - Account Serivces Agreement

 Exhibit 10.21 
 POPLAR CREEK APARTMENTS, SCHAUMBURG, ILLINOIS 
  
 PROPERTY MANAGEMENT – 
 ACCOUNT SERVICES AGREEMENT 

BETWEEN 
 LEGACY
PARTNERS RESIDENTIAL L.P. 
 AND 
 KBS LEGACY PARTNERS POPLAR LLC 

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
		
	 Recitals
	  	 	1	  
	 ARTICLE 1.
	 	    DEFINITIONS	  	 	1	  
	 1.01.   Definitions
	  	 	1	  
	ARTICLE 2.	 	    APPOINTMENT AND SERVICES OF AGENT	  	 	2	  
	 2.01.   Term
	  	 	2	  
	ARTICLE 3.	 	    COMPENSATION AND EXPENSES OF AGENT	  	 	3	  
	 3.01.   Fees
	  	 	3	  
	 3.02.   Expenses to be Borne by Agent
	  	 	4	  
	 3.03.   Noncustomary Services
	  	 	5	  
	 3.04.   Nonperformance
	  	 	5	  
	ARTICLE 4.	 	    PERSONNEL AND BONDING	  	 	5	  
	 4.01.   Stability of Management Team
	  	 	5	  
	 4.02.   Fidelity Bond
	  	 	5	  
	 4.03.   Affiliates
	  	 	6	  
	ARTICLE 5.	 	    COMPLIANCE WITH LAWS	  	 	6	  
	 5.01.   Compliance
	  	 	6	  
	 5.02.   Notice
	  	 	6	  
	ARTICLE 6.	 	    FINANCIAL MATTERS	  	 	6	  
	 6.01.   Books and Records
	  	 	6	  
	 6.02.   Reports
	  	 	6	  
	 6.03.   Audit
	  	 	7	  
	 6.04.   Other Reports and Statements
	  	 	7	  
	 6.05.   Reserved
	  	 	7	  
	 6.06.   Final Accounting
	  	 	7	  
	 6.07.   Reserved
	  	 	7	  
	 6.08.   Certification
	  	 	7	  
	ARTICLE 7.	 	    BANK ACCOUNTS	  	 	7	  
	 7.01.   Property Accounts
	  	 	7	  
	 7.02.   Expenses Paid By Owner
	  	 	8	  
	ARTICLE 8.	 	    INSURANCE AND INDEMNITY	  	 	8	  
	 8.01.   INDEMNIFICATION
	  	 	8	  
	 8.02.   Agent’s Insurance Responsibility
	  	 	10	  
	 8.03.   Contract Documents; Indemnity Provisions
	  	 	11	  
	 8.04.   Ratings of Insurance Companies
	  	 	11	  
	 8.05.   Owner’s Insurance Responsibility
	  	 	11	  
	 8.06.   Reserved
	  	 	11	  
	ARTICLE 9.	 	    RELATIONSHIP OF PARTIES and REPRESENTATIONS and WARRANTIES	  	 	11	  
	 9.01.   Nature of Relationship
	  	 	11	  
	 9.02.   Communications Between Parties
	  	 	12	  
	 9.03.   Relationship of Owner and Agent with Respect to Leasing
	  	 	12	  
	 9.04.   No Sales Brokerage Agreement
	  	 	12	  
	 9.05.   Confidentiality
	  	 	12	  

							
	 9.06.   Agent Not to Pledge Owner’s Credit
	  	 	12	  
	 9.07    Representations and Warranties
	  	 	12	  
	 ARTICLE 10.
	 	    TERMINATION	  	 	13	  
	 10.01.   Termination by Owner Without Cause
	  	 	13	  
	 10.02.   Termination by Owner for Cause
	  	 	13	  
	 10.03.   Termination by Agent
	  	 	14	  
	 10.04.   Orderly Transition
	  	 	14	  
	 10.05.   Rights Which Survive Termination or Expiration
	  	 	14	  
	 ARTICLE 11.
	 	    MISCELLANEOUS	  	 	14	  
	 11.01.   Governing Law
	  	 	14	  
	 11.02.   Table of Contents and Headings
	  	 	14	  
	 11.03.   Entire Agreement
	  	 	14	  
	 11.04.   Successors and Assigns
	  	 	15	  
	 11.05.   Waiver
	  	 	15	  
	 11.07.   Time
	  	 	15	  
	 11.08.   Attorneys’ Fees
	  	 	15	  
	 11.09.   Further Acts
	  	 	15	  
	 11.10.   No Advertising
	  	 	15	  
	 11.11.   Signs
	  	 	16	  
	 11.12.   Owner Exculpatory Clause; Waivers of Jury Trial and Punitive Damages
	  	 	16	  
	 11.14.   Notices
	  	 	16	  
	 11.15.   Counterparts
	  	 	17	  

 EXHIBITS: 
  

			
	 A -         LEGAL DESCRIPTION

 PROPERTY MANAGEMENT - ACCOUNT SERVICES AGREEMENT 

    This PROPERTY MANAGEMENT - ACCOUNT SERVICES AGREEMENT (this “Agreement”) is made
as of February 9, 2012 (the “Effective Date”) between LEGACY PARTNERS RESIDENTIAL L.P., a Delaware limited partnership (“Agent”), and KBS LEGACY PARTNERS POPLAR LLC, a Delaware limited liability company
(“Owner”). 
 RECITALS 

    A.         Owner is the record or beneficial owner of the
Property (as defined below) and Agent is experienced in the management, operation and accounting of residential apartment projects similar to the Property. 
     B.         The parties desire to enter into this Agreement and set forth the terms and conditions under which Agent will provide certain
services with regard to account maintenance and bookkeeping services. 
     NOW,
THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, Owner and Agent agree as follows: 
 AGREEMENT 
 ARTICLE 1. DEFINITIONS. 

1.01.      Definitions. As used in this Agreement, the following terms shall have the respective meanings
set forth below: 
     “Affiliate” shall mean, when used with respect to any
person (a) if such person is a corporation, any officer or director thereof and any person which is directly, or indirectly, the beneficial owner of more than 10% of any class of equity security (as defined in the Securities Exchange Act of
1934) thereof, or if any such beneficial owner is a partnership, any partner thereof, or if any such beneficial owner is a corporation, any person controlling, controlled by or under common control with such beneficial owner or of any officer or
director of such beneficial owner or of any corporation occupying any such control relationship, (b) if such person is a partnership, any partner thereof, and (c) any other person which directly or indirectly controls or is controlled by
or is under common control with such person. For the purpose of this definition, “control” (including the correlative meanings of the term “controlling,” “controlled by” and “under common control with”), with
respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person, whether through the ownership of voting securities or by contract or otherwise.
The term “Affiliate” shall also mean, when used with respect to any individual, the parents and grandparents of such individual, the parents and grandparents of any other individual who is an Affiliate of such individual by virtue of any
one or more of the foregoing clauses (a), (b) and (c) of this definition, any descendant (whether natural or adopted) of any such parents or grandparents and any spouse of any such descendant. 

  
 1 

     “Approved Capital Budget” and
“Approved Operating Budget” shall have the meanings set forth in the Property Management Agreement. 

    “Fiscal Year” shall mean the twelve (12) months commencing January 1 and
ending December 31. 
     “Gross Monthly Collections” shall have the meaning
set forth in the Property Management Agreement. 
     “Property” shall mean that
certain real property consisting of approximately twelve and eighth-tenths (12.8) acres and improvements constructed thereon consisting of one hundred ninety six (196) residential units (commonly known as the Poplar Creek Apartments) and
zero (-0-) square feet of retail space located in the Schaumburg, Illinois as more particularly described on Exhibit A attached hereto. 
     “Property Management Agreement” shall mean that certain Property Management Agreement dated as of even date herewith between Owner and Property Manager for the provision
of property management services with respect to the Property. 
     “Property
Manager” shall mean RMK Management Corporation, an Illinois corporation. 

    “Records Office” shall mean Agent’s corporate office in Foster City, California.

 ARTICLE 2. APPOINTMENT AND SERVICES OF AGENT. 

2.01.     Term. Owner hereby hires Agent to provide account maintenance and bookkeeping
services upon the terms and conditions herein stated, and Agent hereby accepts said engagement, for a term beginning on the date of this Agreement and ending at 12:00 midnight on the one-year anniversary of the beginning date, unless sooner
terminated by Owner or Agent as provided in Article 10 of this Agreement. At the expiration of said term, this Agreement, if not renewed in writing by Owner and Agent, shall then be deemed a month-to-month agreement cancelable by either party
on not less than thirty (30) days’ advance written notice, which notice may be given at any time during a month, provided that in any event the cancellation shall be effective at the end of the calendar month in which the thirty
(30) day notice period ends. 
 2.02.      Services of Agent. Agent shall
maintain the Accounts (as defined below) and provide bookkeeping services to facilitate the efficient operation of the Property in compliance with this Agreement. Without limiting the generality of the foregoing and subject at all times to such
procedures and directions that shall be set forth in this Agreement (as revised or amended from time to time), Agent shall do all of the following: 

     (a)        Employees. Agent
shall select, employ, pay, supervise and discharge all employees and personnel necessary to provide the services required under this Agreement (subject to the limitations set forth in Section 4.01 hereof). All persons so employed by

  
 2 

 
Agent shall be employees of Agent or independent contractors retained by Agent, and not by Owner. All costs of gross salary and wages, payroll taxes, medical and dental insurance, worker’s
compensation insurance, incentive leasing bonuses and other costs and employee benefit expenses payable on account of such employees, shall be included in the Approved Operating Budget. Agent shall fully comply with all applicable laws and
regulations having to do with workers’ compensation, social security, unemployment insurance, hours of labor, wages, working conditions and other employer/employee-related subjects. 

    (b)        Records and Budgets.
Agent shall keep or cause to be kept at the Records Office suitable books of control as provided in this Agreement. Agent shall assist Owner in reviewing monthly, quarterly, annual or other operating and capital budgets as shall be required by
Owner. 

    (c)        Operating Expenses.
Unless otherwise directed by Owner, at the written request and direction of Property Manager, Agent shall process payment of all operating and capital expenses in a manner commercially reasonable for the Property. 

    (d)        Business Plan and Property
Review Program. Agent shall assist Owner in reviewing business plans for the Property submitted by Property Manager. In addition, Agent shall participate in Owner’s property review programs to the extent requested by Owner and applicable to
the services provided under this Agreement. Such review shall include asset, investment, financial and strategy profiles in form and substance satisfactory to Owner and such assistance as Owner may request in connection with appraisals of the
Property. Agent shall respond, within 10 days, to Owner’s management evaluation reports concerning actions to be taken by Agent to correct or modify its management standards for the operations or financial services provided for the Property.

 ARTICLE 3. COMPENSATION AND EXPENSES OF AGENT. 
 3.01.   Fees. 

    (a)        Owner shall pay Agent, and
Agent shall accept as full compensation for the services to be rendered to Owner hereunder during the term hereof, a sum equivalent to one percent (1%) of Gross Monthly Collections (the “Services Fee”). Such compensation shall
be payable monthly on or before the 20th of the subsequent month. 

    (b)        Except with respect to other
services provided by Affiliates of Agent in accordance with Section 3.01(c), which shall be reimbursed by Owner pursuant to Section 3.01(c), Agent shall pay from the Services Fee all costs associated with or relating to its own office
overhead and management personnel not located or employed at the Property, including without limitation, the salaries, wages and all other compensation, together with associated unemployment and social security taxes and contributions, as well as
expenses specifically stated in this Agreement to be borne by Agent. 

    (c)        If included in the Approved
Operating Budget or with the prior approval and 

  
 3 

 
direction of Owner, Agent may obtain services and materials including, but not limited to, consulting, training, computer hardware and software, contract services and accounting and bookkeeping
services through the organization, subsidiaries or Affiliates of Agent for the benefit of the Property, provided the quality of service and the price thereof is competitive with comparable prices and services offered by third parties, and the costs
therefore shall be reimbursed by Owner. All discounts, rebates and other savings realized thereon by Agent are to be passed on to Owner, in full. 
 3.02.   Expenses to be Borne by Agent. Unless otherwise provided in the Approved Operating Budget or Section 4.01(b) below, expenses incurred in rendering all overall supervisory,
management and recordkeeping and other services to be rendered by Agent in connection with the operations of the Property shall be borne by Agent and not charged to Owner. Without limiting the generality of the foregoing provisions of this section,
the following expenses and costs incurred by and/or on behalf of Agent shall be at the sole cost and expense of Agent and shall not be reimbursed by Owner: 

    (a)        All costs of gross salary and
wages, payroll taxes, insurance, workmen’s compensation and other costs of Agent’s corporate office and executive personnel (other than full time or part time personnel whose positions and salaries are specifically authorized in the
Approved Operating Budget); 

    (b)        All costs incurred as a result
of Agent’s breach of this Agreement, and/or the negligence and/or willful misconduct of Agent and/or any one or more of its Affiliates, employees, independent contractors, agents and/or other representatives; 

    (c)        Unless otherwise provided in
the Approved Operating Budget, all costs of forms, accounting materials, administrative materials, papers, ledgers and other supplies and equipment used in Agent’s corporate office, all costs of Agent’s data processing equipment located at
Agent’s corporate office and all costs of data processing provided by computer service companies to Agent’s corporate office; 
     (d)        All costs of bonuses, incentive compensation, profit sharing or any pay advances to employees employed by Agent in connection
with the operation and management of the Property, except for payments to individuals specifically set forth in the Approved Operating Budget or otherwise approved in writing by Owner in advance; 

    (e)        All costs of automobile
purchases and/or rentals, unless provided for in the Approved Operating Budget or Approved Capital Budget or the automobile is being provided by Owner; 

    (f)        All costs of comprehensive
crime insurance purchased by Agent for its own account; 

    (g)        All costs of meals, travel and
hotel accommodations for Agent’s home or regional office personnel who travel to and from the Property, unless expressly authorized by Owner; and 

  
 4 

    (h)        Unless otherwise provided in
the Approved Operating Budget, all costs (exclusive of fees that are directly property related, e.g., registration fee) of obtaining and maintaining such licenses, permits, consents and authorizations. 

3.03.   Noncustomary Services.    Notwithstanding anything provided in this Agreement to the
contrary, Agent shall not furnish or render to the tenants of the Property services other than those services customarily furnished to tenants of properties similar to the Property. 

3.04.   Nonperformance. If Agent fails to perform any act required under this Agreement, then Owner, after ten
(10) days’ written notice to Agent (or, in the case of any emergency, without notice) and without waiving or releasing Agent from any of its obligations hereunder, may (but shall not be required to) perform such act. Owner shall have (in
addition to any other right or remedy) the right to offset all costs and expenses incurred in exercising its rights under this Section 3.04 against any sums due or to become due to Agent, including, without limitation, the Services Fee.

 ARTICLE 4. PERSONNEL AND BONDING. 
 4.01.   Stability of Management Team.    Owner and Agent recognize the benefits inherent in promoting stability in the management team engaged in the operation of the
Property. 
     (a)        Agent
shall, in the hiring of all employees and in retaining independent contractors, use reasonable care to select qualified, competent and trustworthy employees and independent contractors. Subject to the provisions of this Section 4.01, the
selection, terms of employment (including rates of compensation) and termination thereof, and the supervision, training and assignment of duties of all employees of Agent engaged in the operation of the Property shall be the duty and responsibility
of and shall be determined by Agent. All personnel at the Property shall be employees of Agent and/or contractors of Agent. 
     (b)        Agent shall employ at Agent’s sole cost and expense (unless otherwise provided in the Approved Operating Budget) a
designated representative who works from the Records Office and is responsible for the Property and other properties (the costs and expenses for whom, if provided for in the Approved Operating Budget, shall be pro rated in light of the time spent
attending to the Property as opposed to other properties). 
 4.02. Fidelity Bond. Agent, at Agent’s cost, shall
obtain a fidelity bond or bonds covering Agent, and all persons who handle, have access to, or are responsible for, Owner’s monies in such amount and in such forms as are reasonably acceptable to Owner, at all times and to cover all periods,
during the term of this Agreement. Any changes in such bond(s) must be approved by Owner. Agent hereby agrees to add Owner as a joint loss payee under its blanket crime policy as it pertains to the Property. Agent hereby assigns all proceeds of said
bond(s) as they relate to the Property to Owner and agrees to execute such further assignments and notices thereof as shall be required by Owner. Such bond(s) shall indemnify Owner against any loss of money or other property which Owner shall
sustain through any criminal, fraudulent or dishonest act or acts committed by Agent or any of its employees or agents, during the performance of their obligations under this Agreement or their

  
 5 

 
employment. Alternatively, Agent may obtain a crime insurance policy covering the Agent, and all persons who handle, have access to, or are responsible for, Owner’s monies which shall be
obtained at Agent’s sole expense and shall provide Owner coverage of Two Million Dollars ($2,000,000.00) per occurrence with a Fifty Thousand Dollar ($50,000.00) deductible which deductible shall be an expense of Agent. Owner shall be furnished
by Agent with a certificate or other satisfactory documentation relating to the bond(s) or alternative crime insurance policy immediately upon issuance thereof. 
 4.03.   Affiliates. Agent shall not contract for outside services for the Property with any Affiliate of Agent without the prior written consent of Owner. 

ARTICLE 5. COMPLIANCE WITH LAWS. 
 5.01.   Compliance. Agent shall comply fully with and abide by all laws, rules, regulations, requirements, orders, notices, determinations and ordinances (collectively,
“Requirements”) of any federal, state or municipal authority to the extent applicable. If the cost of compliance is (i) not included in the Approved Operating Budget or Approved Capital Budget or (ii) in excess of $10,000,
Agent shall notify Owner promptly and obtain Owner’s prior written approval prior to making the expenditure. 

5.02.   Notice. Agent shall promptly notify Owner of any non-compliance with, or alleged violation of, any Requirement
after becoming aware of the same. 
  
 ARTICLE 6.
FINANCIAL MATTERS. 
 6.01.   Books and Records.   Property Manager shall keep accounts and books
and records of the Property in accordance with the terms of the Property Management Agreement and the methods and systems, and in form and substance, approved by Owner, showing all receipts, expenditures and all other records necessary or convenient
for the recording of the results of operations of the Property. Such books are to be maintained on both a cash and accrual accounting basis utilizing the Yardi accounting software hosted by Agent. Agent shall cooperate and assist Property Manager in
the production and retention of such books and records. To the extent held by Agent, any such original books and records shall be kept in a secure location at the Records Office and shall be open to inspection by Owner and their representatives
during normal business hours and Agent agrees to cooperate in making such books and records available for inspection. Upon the effective date of any termination of this Agreement, all of such books and records held by Agent shall be delivered
forthwith to Owner so as to ensure the orderly continuance of the operation of the Property. Cut-off date for books on a monthly basis will be the last working day of each month. 

 

	6.02.	   Reports. 

    (a)        On or before the last day of
each month, Agent shall provide such reports and data to Owner and Property Manager as shall be required from time to time by Owner. Without limitation, Agent shall provide the following to Owner and Property Manager for the current calendar month:

  
 6 

        (i)        a
detailed report of all monies collected (identified by tenant or other source) which shall include, but not be limited to, rents collected (including laundry or other vending income, garage or parking income, percentage rent and other amounts
payable under any retail leases, if any), rents prepaid beyond the current month, and security deposits collected, and of vacancies and delinquent rents; 

        (ii)        a
detailed report of all expenses paid; 

        (iii)       all bank
statements and reconciliations; and 

        (iv)       any other
special information as required from time to time by Owner. 
 6.03.   Audit.   Owner shall have the
right to conduct an audit of the Property’s accounts and records at any time. Agent shall promptly correct all weaknesses and errors disclosed by Owner’s audits, and shall timely inform Owner in writing of all corrective actions taken.
Owner’s audit shall be at Owner’s expense unless an error arising from Agent’s negligence or misconduct is discovered that is equal to or greater than two percent (2%) of annual gross receipts of the Property for the period
audited, in which case Agent shall bear the full cost of the subject audit. Any adjustments in amounts due and owing from Owner or Agent shall be paid within fifteen (15) calendar days following Owner’s receipt of the audit. 

6.04.   Other Reports and Statements.   Agent shall furnish to Owner, as promptly as practicable, such other
reports, statements or other information with respect to the operations of the Property or the Accounts as Owner may from time to time reasonably request. 
 6.05.   Reserved. 
 6.06.   Final Accounting.
  Following termination of this Agreement, whether by expiration of the term hereof or sooner, Agent shall be responsible for preparing a final accounting within thirty (30) days after the effective date of said termination. The final
accounting shall include all items reasonably requested by Owner. Agent shall be entitled to receive a prorated share of its Services Fee to the date of termination. 
 6.07.   Reserved. 
 6.08.   Certification. To
the extent applicable, all financial statements shall be certified as true and correct in all material respects by Agent. 

ARTICLE 7. BANK ACCOUNTS. 
 7.01.    Property Accounts. 

    (a)        All funds received by Agent
derived from the operation of the Property, as well as working capital furnished by Owner, shall be deposited in an account (the “Property Bank Account”) in Agent’s name, as agent for Owner, in an FDIC-insured bank designated

  
 7 

 
or approved by Owner, which such account will be in compliance with applicable law. Owner may direct Agent to change depository banks or the depository arrangements. All funds so deposited shall
be deemed to be trust funds held by Agent for the benefit of Owner and shall be held and disbursed as provided herein. Agent shall establish another custodial and/or trust account as required by applicable law or the Owner for the deposit of tenant
security deposits (the “TSD Account”). 

    (b)        No non-Property funds shall be
commingled with the funds in the Property Bank Account or TSD Account (collectively, the “Accounts”). 

7.02.   Expenses Paid by Owner. Except as otherwise directed by Owner, the following costs are to be paid directly by
Agent: 
     (a)        Any and all
costs necessary for the management, operation and maintenance of the Property requested by Property Manager, provided such costs are provided for and are within the limits of the Approved Operating Budget or specifically approved in writing by
Owner; 
     (b)        Capital
expenditures provided for in the Approved Capital Budget and requested by Property Manager or authorized in writing by Owner and directed by Owner to be incurred by Property Manager; and 

    (c)        Any and all costs necessary
for emergency expenses as provided in Section 2.02(f) of the Property Management Agreement and directed to be incurred by Property Manager. 
    Agent shall not be obligated to make any advance to or for the account of Owner. 
 ARTICLE 8. INSURANCE AND INDEMNITY. 

8.01.    INDEMNIFICATION. 

    (A)        AGENT AGREES TO AND SHALL,
COMPLETELY AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO OWNER), PROTECT AND HOLD OWNER AND ITS RESPECTIVE PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AUTHORIZED
SUCCESSORS, AUTHORIZED ASSIGNS AND AGENTS HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, ACTIONS, FINES, PENALTIES, LIABILITIES, LOSSES, TAXES, DAMAGES, INJURIES AND EXPENSES (INCLUDING, WITHOUT LIMITATION, ACTUAL ATTORNEYS’,
CONSULTANTS’ AND EXPERT WITNESS’ FEES, AND DEFENSE COSTS AT BOTH THE TRIAL AND APPELLATE LEVELS) (COLLECTIVELY, “DAMAGES”) IN ANY MANNER RELATED TO, ARISING OUT OF OR RESULTING FROM (I) ANY FAILURE OF AGENT TO PERFORM ITS
OBLIGATIONS UNDER THIS AGREEMENT CAUSING DAMAGE TO OWNER, 

  
 8 

 
BUT ONLY TO THE EXTENT SUCH DAMAGES ARE NOT COVERED BY THE INSURANCE MAINTAINED BY OWNER UNDER SECTION 8.05 BELOW, (II) ANY ACTS OF AGENT BEYOND THE SCOPE OF ITS AUTHORITY UNDER THIS
AGREEMENT, (III) ANY NEGLIGENCE, WILLFUL MISCONDUCT OR OTHER WRONGFUL OR INTENTIONAL ACTS OR OMISSIONS OF AGENT, BUT WITH REGARD TO NEGLIGENCE OF PROPERTY MANAGER (AS OPPOSED TO GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR OTHER WRONGFUL OR
INTENTIONAL ACTS OR OMISSIONS) ONLY TO THE EXTENT SUCH DAMAGES ARE NOT COVERED BY THE INSURANCE MAINTAINED BY OWNER UNDER SECTION 8.05 BELOW, (IV) ANY INJURY, DAMAGE OR DEATH TO AGENT, ITS OFFICERS, DIRECTORS, PARTNERS, EMPLOYEES, AGENTS AND
OTHER REPRESENTATIVES, AND (V) ANY INJURY, DAMAGE AND/OR DEATH TO ANY INDEPENDENT CONTRACTORS OF AGENT. THE OBLIGATIONS OF AGENT UNDER THIS SUBSECTION (A) SHALL APPLY ONLY TO THE EXTENT DAMAGES OF AN INDEMNIFIED PARTY ARE NOT FULLY PAID BY
OWNER’S COMMERCIAL GENERAL LIABILITY INSURANCE DESCRIBED BELOW IN SECTION 8.05(B). NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS AGREEMENT TO THE CONTRARY, AGENT’S OBLIGATIONS UNDER THIS SECTION 8.01 SHALL SURVIVE THE EXPIRATION,
TERMINATION OR CANCELLATION OF THIS AGREEMENT, AND SHALL BIND ANY AND ALL OF THE HEIRS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES OF AGENT. THE RIGHTS OF OWNER UNDER THIS SECTION 8.01 SHALL ALSO INURE TO THE BENEFIT OF ANY AND ALL OF
THEIR PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, TRUSTEES, HEIRS, BENEFICIARIES, TRUSTS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES, AND TO THE BENEFIT OF ANY AND ALL PERSONS AND LEGAL ENTITIES WHO
ARE, COULD BE OR ARE ALLEGED TO BE, LIABLE FOR THE OBLIGATIONS OF OWNER OR SUCH PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, TRUSTEES, HEIRS, BENEFICIARIES, TRUSTS, SUCCESSORS, ASSIGNS, TRANSFEREES AND
REPRESENTATIVES. 

    (B)        OWNER AGREES TO AND SHALL,
COMPLETELY AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO AGENT), PROTECT AND HOLD AGENT (AND ITS PARTNERS, EMPLOYEES, AGENTS, SUCCESSORS, ASSIGNS AND TRANSFEREES) HARMLESS FROM AND AGAINST ANY
AND ALL DAMAGES IN ANY MANNER RELATED TO OR ARISING OUT OF AGENT’S PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT WHICH ARE (A) WITHIN THE SCOPE OF ITS AUTHORITY UNDER THIS AGREEMENT, AND (B) NOT WITHIN THE SCOPE OF AGENT’S
INDEMNITY SET FORTH IN SECTION 8.01(A) ABOVE. 

    (C)        THE RIGHTS AND OBLIGATIONS
OF INDEMNITY PROVIDED IN THIS SECTION 8.01 SHALL NOT BE EXCLUSIVE AND SHALL BE IN ADDITION 

  
 9 

 
TO SUCH OTHER RIGHTS AND OBLIGATIONS AS OTHERWISE EXIST INDEPENDENT OF THE PROVISIONS OF THIS SECTION 8.01. 
 8.02.   Agent’s Insurance Responsibility. 
     (a)        The Agent shall maintain during the term of this Agreement, and any extensions or renewals thereof, each of the following
insurance coverages with deductibles, if applicable: 
  

	 	(i)	 Workers’ Compensation Insurance at no less than statutory requirements including employer’s liability with a limit of not less than
$1,000,000 each accident for bodily injury accident and $1,000,000 each employee and policy limit for bodily injury by disease. 

  

	 	(ii)	 Non-Occupational Disability Insurance when required by law, if applicable. 

     (iii)    Commercial General Liability Insurance with a
minimum combined bodily injury and property damage per occurrence limit of liability of $5,000,000, a products-completed operations aggregate limit of $5,000,000 and a general aggregate limit of $10,000,000. Limits of liability may be satisfied
through the maintenance of a combination of primary and umbrella/excess liability policies. 

     (iv)    Automobile Liability Insurance covering owned,
hired and nonowned vehicles, separate coverage in an amount not less than $1,000,000 combined single limit for bodily injury and property damage of $1,000,000 each accident. 

     (v)    Errors and Omissions Insurance coverage in an
amount not less than $1,000,000 each claim and general aggregate. 

    (b)        Agent shall promptly provide
Owner no later than three (3) days after the Effective Date with certificates of insurance or other satisfactory documentation which evidence that all required insurance is in full force and effect. Upon request, Agent shall provide Owner with
a copy of the foregoing insurance policies. The insurance as required in Subsections 8.02(a)(i), (ii) and (v) to be maintained by Agent shall provide that the insurer shall provide to Owner thirty (30) days’ advance notice
of cancellation or material change. The liability policies required by Subsections 8.02(a)(iii) and (iv) shall provide that the insurer shall provide to Owner thirty (30) days’ advance notice of cancellation or material change
and shall name Owner and its principals, officers, directors, shareholders, partners, members, trustees, beneficiaries and employees as additional insureds. All liability policies shall be written to apply to all bodily injury, property damage,
personal injury and other covered loss, however occasioned, which occurred or arose (or the onset of which occurred or arose) in whole or in part during the policy period. Such liability policies also shall contain endorsements including
cross-liability and waiver of subrogation, and shall contain such other endorsements as may be reasonably required by Owner. The liability policies 

  
 10 

 
required by Subsections 8.02(a)(iii) shall include broad form contractual liability insurance coverage. 
 8.03.   Contract Documents; Indemnity Provisions. Agent shall use its best efforts to include in service and supply contracts prepared or executed by Agent respecting the Property
provisions to the effect that the other contracting party shall, to maximum extent permitted by law, indemnify, defend (with counsel reasonably acceptable to Owner), protect and hold harmless Agent and Owner and their respective principals,
officers, directors, shareholders, partners, members, managers, trustees, beneficiaries and employees from and against any and all Damages in any manner related to, arising out of and/or resulting from any damage to or injury to, or death of,
persons or property caused or occasioned by or in connection with or arising out of any acts or omissions of said contracting party or its employees or agents or contractors and agree that no principal, officer, director, shareholder, partner,
member, manager, investor, trustee, officer, employee or agent of Owner shall be personally liable for any of the obligations of Owner hereunder. 
 8.04.   Ratings of Insurance Companies. All insurance required to be carried by Agent shall be written with companies having a policyholder and asset rate, as circulated by Best’s
Insurance Reports, of A-:VIII or better unless an exception is approved by Owner. 
 8.05.   Owner’s Insurance
Responsibility. Owner shall maintain during the term of this Agreement, and any extensions thereof, each of the following insurance coverages which shall be primary and noncontributory insurance: 

    (a)        All-Risk Property Damage
Insurance and Loss of Rents Insurance coverage on the Property. 

    (b)        Commercial General Liability
Insurance coverage with a minimum general aggregate limit of not less than $10,000,000. Agent shall be designated an insured under Owner’s commercial general liability insurance policy while acting within the scope of its authority as
Owner’s property manager. All other terms and conditions of this Agreement (including, without limitation, the indemnification provisions of Section 8.01 and Agent’s obligation to maintain insurance described in Section 8.02)
shall not be affected by this Section 8.05(b). 
 8.06.   Reserved. 

 

	ARTICLE	  9. RELATIONSHIP OF PARTIES and REPRESENTATIONS and WARRANTIES. 

9.01.   Nature of Relationship. In taking any action pursuant to this Agreement, Agent will be acting only as an
independent contractor, and nothing in this Agreement, expressed or implied, shall be construed as creating a partnership or joint venture or an employment relationship or that of principal and agent between Agent (or any person employed by Agent)
and Owner or any other relationship between the parties hereto except that of property owner and independent contractor. 

  
 11 

 9.02.   Communications Between Parties. Owner shall rely on Agent to direct
and control all operations at the Property; provided, however, Owner reserves the right to communicate directly with the manager specified in Subsection 4.01(b), Agent’s accountant(s) working on Property matters, all tenants and
tenants’ representatives, all lease prospects, all advertising, management, cleaning and servicing firms doing work for the Property, and all parties contracting with Owner or Agent with respect to the Property. 

9.03.   Relationship of Owner and Agent with Respect to Leasing. Agent shall not be entitled to any commission or other
fee in connection with the leasing of apartment units at the Property. 
 9.04.   No Sales Brokerage Agreement.
There are no sales brokerage agreements between Owner and Agent; Agent has no brokerage agreement or understanding (exclusive or otherwise) with respect to the sale of all or part of the Property on behalf of Owner; and in the event that Owner
effects a sale of the Property, whether on its own or through the use of others, brokers or otherwise, Agent shall be entitled to no compensation, fee or commission or other payment on account of such sale. Unless specifically approved by Owner,
Agent shall have no right to obligate Owner for the payment of any fees or commissions to any outside real estate agent or broker for tenant leases. Except as expressly provided to the contrary elsewhere herein or as otherwise approved by Owner in
writing, Agent shall be fully responsible for any compensation due employees of Agent and any real estate brokers cooperating with Agent. Agent shall indemnify and hold Owner harmless with respect to any action, proceeding, claim, liability, loss,
cost or expense (including reasonable attorneys’ fees) arising in connection with any claim for brokerage or finder’s fees or any other like payment payable as a result of a breach under this Section 9.04 by Agent. Agent’s
obligations with respect to the foregoing indemnity shall survive the expiration or earlier termination of this Agreement. 

9.05.   Confidentiality. Except as may be otherwise required by law, Agent and Owner shall maintain the confidentiality
of all matters pertaining to this Agreement and all operations and transactions relating to the Property. 
 9.06.  
Agent Not to Pledge Owner’s Credit. Agent shall not, except in the purchase of goods, wares, merchandise, materials, supplies and services reasonably required in the performance of its obligations under this Agreement and approved by
Owner, pledge the credit of Owner; nor shall Agent, in the name or on behalf of Owner, borrow any money or execute any promissory note, installment purchase agreement, bill of exchange or other obligation binding on Owner or the Property.

 9.07   Representations and Warranties. 

    (a)        Agent represents and warrants
that (i) Agent has full power, authority and legal right to execute, deliver and perform this Agreement and to perform all of its obligations hereunder and (ii) the execution, delivery and performance of all or any portion of this
Agreement do not and will not (x) require any consent or approval from any governmental authority, (y) violate any provisions of law or any government order or (z) conflict with, result in a breach of, or constitute a default under,
the charter or bylaws of 

  
 12 

 
Agent or any instrument to which Agent is a party or by which it or any of its property is bound. 

    (b)        Owner represents and warrants
that it has full power, authority and legal right to execute, deliver and perform this Agreement. 
     (c)        Agent acknowledges and agrees that Owner is relying upon the representations and warranties set forth in Sections 9.07(a) in
entering into this Agreement, and Owner acknowledges and agrees that Agent is relying upon the representations and warranties set forth in Section 9.07(b) in entering into this Agreement. 

ARTICLE 10.             TERMINATION. 

10.01.   Termination by Owner Without Cause. This Agreement may be terminated by Owner at any time without cause and
upon written notice to Agent by Owner, effective thirty (30) days from the date of such notice, which shall be considered the effective date of termination. 
 10.02.   Termination by Owner for Cause. This Agreement may be terminated by Owner (or the Agent may be required by Owner to change its personnel assigned as Agent for the Property) at
any time during the term hereof upon written notice to Agent effective immediately for any of the following causes: 
     (a)        If Agent shall suspend or discontinue business; 

    (b)        If a court shall enter a
decree or order for relief in respect of Agent in an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal, state or foreign bankruptcy, insolvency or other similar law, or appoint a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Agent or for any substantial part of its property, or for the winding-up, dissolution or liquidation of its affairs, and such decree or order shall continue
unstayed and in effect for a period of sixty (60) consecutive days or if Agent shall consent to any of the foregoing; 
     (c)        If Agent shall commence a voluntary case or action under the federal bankruptcy laws, as now or hereafter constituted, or any
other applicable federal or state bankruptcy insolvency or other similar law, or consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Agent or for any
substantial part of its property, or make any assignment for the benefit of creditors, or admit in writing that it is unable, or fail generally to pay its debts as such debts become due, or take action in furtherance of any of the foregoing;

     (d)        If Agent is
grossly negligent or engages in willful misconduct with respect to its duties or obligations to Owner under this Agreement; or 
     (e)        If Agent commits any other material default in the performance of any of its obligations under this Agreement, unless such
default is cured with thirty (30) days after written notice of such default is given to Agent, or, if not curable within thirty (30) days, 

  
 13 

 
commenced within such thirty (30) days and diligently prosecuted to completion. 
 10.03.   Termination by Agent. This Agreement may be terminated by Agent, without cause, upon ninety (90) days’ written notice to Owner. This Agreement may be terminated by
Agent for cause if Owner commits any material default in the performance of any of its obligations under this Agreement, including, without limitation, its obligation to pay to Agent any fees due and payable under Section 3.01 above, and such
default shall continue for a period of thirty (30) days after notice thereof by Agent to Owner. 
 10.04.  
Orderly Transition. In the event of any termination or expiration of this Agreement, Agent shall use its best efforts to effect an orderly transition of the management and operation of the Property to an agent designated by Owner and to
cooperate with such agent. Upon termination or expiration of this Agreement, Agent’s rights, if any, to withdraw funds from any account which contains funds collected in connection with the Property shall terminate. Agent shall remove all signs
that it may have placed at the Property containing its name and repair any resulting damage. In addition, Agent shall deliver the following to Owner on or before thirty (30) days following the termination or expiration date: 

    (a)        A final report, reflecting the
balance of income and expenses for the Property as of the date of termination or expiration; and 
     (c)        All keys, property, supplies, records, contracts, drawings, leases and correspondence, in existence at the time of termination or
expiration and all other papers or documents pertaining to the Property. All data, information and documents shall at all times be the property of Owner. 
 10.05.   Rights Which Survive Termination or Expiration. Termination and/or expiration of this Agreement shall in no event terminate or prejudice any right arising out of or accruing in
connection with the terms of this Agreement attributable to events and circumstances occurring prior to termination or expiration of this Agreement, and/or all rights and obligations specified in this Agreement to survive such termination and/or
expiration. 
  

	ARTICLE	  11.             MISCELLANEOUS. 

11.01.   Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State in which
the property is located without going effect to the conflict of law principles of such State. 
 11.02.   Table of
Contents and Headings. The Table of Contents preceding this Agreement and the headings of the various articles and sections of this Agreement have been inserted for convenient reference only and shall not have the effect of modifying or amending
the express terms and provisions of this Agreement. 
  

	11.03.  	 Entire Agreement. This Agreement contains the entire agreement between the parties with

  
 14 

 
regard to the subject matter hereof, and this Agreement shall not be amended, modified or cancelled except in writing signed by both parties or by their duly authorized agents. 

11.04.   Successors and Assigns. All terms, conditions and agreements herein set forth shall inure to the benefit of,
and be binding upon the parties, and any and all of their respective permitted heirs, successors, representatives and assigns. Notwithstanding the foregoing, this Agreement may not be assigned by Agent nor shall Agent delegate any of its duties
hereunder without Owner’s prior written consent, which consent may be granted or withheld in Owner’s sole and absolute discretion. Any attempted assignment or delegation by Agent hereunder in violation of this Section 11.04 shall be
null and void and of no force or effect. 
 11.05.   Waiver. The failure of either party to insist upon a
strict performance of any of the terms or provisions of this Agreement or to exercise any option, right or remedy herein contained, shall not be construed as a waiver or as a relinquishment for the future of such terms, provisions, option, right or
remedy, but the same shall continue and remain in full force and effect. No waiver by either party of any terms or provisions hereof shall be deemed to have been made unless expressed in writing and signed by such party. In the event of consent by
Owner to an assignment of this Agreement, no further assignment shall be made without the express written consent of Owner. 

11.06.   Severability. Whenever possible each provision of this Agreement shall be interpreted in such manner as to be
effective and valid under all applicable laws. However, if any provision of this Agreement is invalid under any applicable law, such provision shall be ineffective only to the extent of such invalidity without invalidating the remaining provisions
of this Agreement and, to the fullest extent possible, this Agreement shall be interpreted so as to give effect to the stated written intent of the parties. 
 11.07.   Time. Time is of the essence of this Agreement. 

11.08.   Attorneys’ Fees. In the event of any legal or equitable proceeding for enforcement of any of the terms or
conditions of this Agreement, or any alleged disputes, breaches, defaults or misrepresentations in connection with any provision of this Agreement, the prevailing party in such proceeding, or the non-dismissing party where the dismissal occurs other
than by reason of a settlement, shall be entitled to recover its reasonable costs and expenses, including without limitation reasonable attorneys’ fees and costs, paid or incurred in good faith at the pre-trial, trial and appellate levels, and
in enforcing any award or judgment granted pursuant thereto. Any award, judgment or order entered in any such proceeding shall contain a specific provision providing for the recovery of attorneys’ fees and costs incurred in enforcing such award
or judgment, including without limitation (a) post-award or post-judgment motions, (b) contempt proceedings, (c) garnishment, levy, and debtor and third party examinations, (d) discovery and (e) bankruptcy litigation. The
“prevailing party”, for purposes of this Agreement, shall be deemed to be that party that obtains substantially the result sought, whether by dismissal, award or judgment. 

11.09.   Further Acts. Owner and Agent shall execute such other documents and perform such other acts as may be
reasonably necessary and/or helpful to carry out the purposes of this Agreement. 
 11.10.   No Advertising. No
publication, announcement or other public advertisement of the name of 

  
 15 

 
Owner in connection with the Property shall be made by Agent, except as may be required by applicable law or with the prior written consent of Owner. 

11.11.   Signs. Signs and building directories are prohibited unless specifically approved by Owner. Agent may place
reasonable leasing signs as required with the prior approval of Owner. All signs must meet all requirements of local sign codes and ordinances. 
 11.12.   Owner Exculpatory Clause; Waivers of Jury Trial and Punitive Damages. Agent agrees that no principal, officer, director, shareholder, partner, member, investor, manager,
representative, trustee, officer, employee or agent of Owner or of its members or partners shall be personally liable for any of the obligations of Owner hereunder and that Agent must look solely to the assets of Owner for the enforcement of any
claims against Owner arising hereunder. In addition, Agent hereby waives in connection with any such claim any right it may have to a jury trial and any punitive or consequential damages. 

11.14.   Notices. Any notice required or desired to be given under this Agreement shall be given in writing and shall be
deemed sufficiently given and served for all purposes when personally delivered or delivered by any generally recognized courier, or by certified or registered mail, addressed to the appropriate address shown below. Any notice given by depositing it
in the United States mail as certified or registered mail, postage prepaid, shall be deemed given five (5) business days after deposit. 
  

					
	Owner:	 	 KBS Legacy Partners Poplar LLC
 c/o KBS Capital Advisors, LLC
 620 Newport Center Drive, Suite 1300

Newport Beach, California 92660
 Attn:
  David Snyder
	  	
			
	With a copy to:	 	 KBS Legacy Partners Poplar LLC
 c/o Legacy Partners Residential, Inc.
 7525 SE 24th Street, Suite 180

Mercer Island, WA 98040
 Attention:
  Kerry Nicholson
	  	
			
	With a copy to:	 	 KBS Legacy Partners Poplar LLC
 c/o Legacy Partners Residential, Inc.
 4000 E. Third Avenue, Sixth Floor

Foster City, California 94404
 Attn:
  W. Dean Henry/Guy K. Hays
	  	
			
	Agent:	 	 c/o Legacy Partners Residential, Inc.
 4000 E. Third Avenue, Sixth Floor
 Foster City, California 94404

Attn:   Carol Foster
	  	

  
 16 

					
	With a copy to:	 	 c/o Legacy Partners Residential, Inc.
 4000 E. Third Avenue, Sixth Floor
 Foster City, California 94404

Attn:   W. Dean Henry/Guy K. Hays
	  	

 11.15.   Counterparts. This Agreement may be executed in any number of counterparts and each such
counterpart shall be deemed to be an original instrument, but all such executed counterparts together shall constitute one and the same instrument. 
 [remainder of page intentionally left blank] 

  
 17 

 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as
of the Effective Date. 
  

											
	 OWNER:
	 	KBS LEGACY PARTNERS POPLAR LLC, a Delaware
		 	limited liability company
			
		 	By:	 	KBS LEGACY PARTNERS PROPERTIES
		 		 	 LLC, a Delaware limited liability company, its
 sole member

				
		 		 	By:	  	    KBS LEGACY PARTNERS LIMITED
		 		 		  	     PARTNERSHIP, a Delaware limited
     partnership, its sole member

					
		 		 		  	    By:	  	    KBS LEGACY PARTNERS
		 		 		  		  	    APARTMENT REIT, INC., a
		 		 		  		  	     Maryland corporation, its sole
     general partner

						
		 		 		  		  		  	  By:    /s/ Guy K.
Hays                    
		 		 		  		  		  	  Name: Guy K. Hays
		 		 		  		  		  	  Title: Executive Vice President

  

									
	 AGENT:
	 	LEGACY PARTNERS RESIDENTIAL L.P., a
		 	Delaware limited partnership
			
		 	By:	 	Legacy Partners Residential, Inc., a
		 		 	 Delaware corporation, its managing general
 partner

				
		 		 	By:	 	/s/ Michael J.
King                                
		 		 	Name:	 	Michael J. King
		 		 	Its:	 	Vice President – Designated Real
		 		 		 	Estate Broker

  
 18 

 EXHIBIT A 
 LEGAL DESCRIPTION OF PROPERTY 
 LOT 1 IN WINDSONG SUBDIVISION
BEING A SUBDIVISION OF PART OF THE NORTHEAST  1/4 OF
SECTION 18, TOWNSHIP 41 NORTH, RANGE 10, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED AS DOCUMENT NO 86377271 ON AUGUST 26, 1986 IN THE OFFICE OF THE COUNTY RECORDER AND AS DOCUMENT NO. 3543545 ON AUGUST 26, 1986 IN
THE OFFICE OF THE RECORDER OF DEEDS, IN COOK COUNTY, ILLINOIS. 
  

			
	Permanent Index Numbers:	 	07-18-200-010-0000
		 	07-18-201-008-0000
		
	Commonly known as:	 	1900 Windsong Drive
		 	Schaumburg, Illinois 60194

 . 

  
 A-1

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