Document:

EX-10.72

 Exhibit 10.72 
 Freddie Mac Loan Number: 708083366 
 Property Name: Crystal Park at Waterford 

MULTIFAMILY LOAN AND SECURITY AGREEMENT 
 (CME) 
 (Revised 1-1-2013) 

 

			
	Borrower:	  	  
 KBS LEGACY PARTNERS CRYSTAL LLC,
 a Delaware limited liability company

 

	Lender:	  	  

CBRE CAPITAL MARKETS, INC., a Texas corporation

 

	Date:	  	  
 May 8, 2013
  

  
  

Reserve Fund Information 
 (See Article IV) 
  
  

 

					
	Imposition Reserves	  	(Deferred)  Insurance            	  	(Collect)  Taxes    (Deferred)  water/sewer
			
		  	(N/A)  Ground Rents	  	(Deferred)  assessments/other charges

  
  

 

									
	Repair Reserve	  	Repairs required?	 	   X         Yes	 	             No	 	
					
		  	If Yes, is a Reserve required?	 	   X         Yes	 	             No	 	        
				
	 If Yes to Repairs, but No Reserve, is a Letter of Credit required?
	 	               Yes	 	             No	 	

  
  

 

											
	Replacement Reserve	 	   X     Yes	 	      If Yes:     X   	 	Funded          	 	             Deferred	 	
						
		 	           No	 		 		 		 	

  
  

 

											
	Rental Achievement Reserve  	 	           Yes	 	    If Yes:             	 	Cash  	 	             Letter of Credit	 	
						
		 	   X    No	 		 		 		 	

  
  

 

					
	External Rate Cap Reserve	 	             Yes	 	     X   No

  
  

 

					
	Other Reserve(s)	 	          Yes	 	       X   No

 If Yes, specify:
                                         
                                         
                                         
      
  
  

 TABLE OF CONTENTS 

 
  

							
	ARTICLE I	  	DEFINED TERMS; CONSTRUCTION	  	
			
	1.01	 	Defined Terms	  	1
	1.02	 	Construction	  	1
			
	ARTICLE II	  	LOAN	  	
			
	2.01	 	Loan Terms	  	2
	2.02	 	Prepayment Premium	  	2
	2.03	 	Exculpation	  	2
	2.04	 	Application of Payments	  	2
	2.05	 	Usury Savings	  	2
	2.06	 	Adjustable Rate Mortgage - Third Party Cap Agreement	  	2
			
	ARTICLE III	  	LOAN SECURITY AND GUARANTY	  	
			
	3.01	 	Security Instrument	  	3
	3.02	 	Reserve Funds	  	3
	3.03	 	Uniform Commercial Code Security Agreement	  	4
	3.04	 	Cap Collateral	  	4
	3.05	 	Guaranty	  	4
			
	ARTICLE IV	  	RESERVE FUNDS AND REQUIREMENTS	  	
			
	4.01	 	Reserves Generally	  	4
	4.02	 	Reserves for Taxes, Insurance and Other Charges	  	5
	4.03	 	Repairs; Repair Reserve Fund	  	6
	4.04	 	Replacement Reserve Fund	  	6
	4.05	 	Rental Achievement Provisions	  	6
	4.06	 	Reserved	  	6
	4.07	 	External Cap Agreement Reserve Fund	  	6
			
	ARTICLE V	  	REPRESENTATIONS AND WARRANTIES	  	
			
	5.01	 	Review of Documents	  	7
	5.02	 	Condition of Mortgaged Property	  	7
	5.03	 	No Condemnation	  	7
	5.04	 	Actions; Suits; Proceedings	  	7
	5.05	 	Environmental	  	7
	5.06	 	Commencement of Work; No Labor or Materialmen’s Claims	  	8
	5.07	 	Compliance with Applicable Laws and Regulations	  	9
	5.08	 	Access; Utilities; Tax Parcels	  	9
	5.09	 	Licenses and Permits	  	9

  
 Page i

							
	5.10	 	No Other Interests	  	9
	5.11	 	Term of Leases	  	9
	5.12	 	No Prior Assignment; Prepayment of Rents	  	9
	5.13	 	Illegal Activity	  	10
	5.14	 	Taxes Paid	  	10
	5.15	 	Title Exceptions	  	10
	5.16	 	No Change in Facts or Circumstances	  	10
	5.17	 	Financial Statements	  	10
	5.18	 	ERISA – Borrower Status	  	11
	5.19	 	No Fraudulent Transfer or Preference	  	11
	5.20	 	No Insolvency or Judgment	  	11
	5.21	 	Working Capital	  	11
	5.22	 	Cap Collateral	  	12
	5.23	 	Ground Lease	  	12
	5.24	 	Purpose of Loan	  	12
	5.25	 	Survival	  	12
			
	ARTICLE VI	  	BORROWER COVENANTS	  	
			
	6.01	 	Compliance with Laws	  	13
	6.02	 	Compliance with Organizational Documents	  	13
	6.03	 	Use of Mortgaged Property	  	13
	6.04	 	Non-Residential Leases	  	14
	6.05	 	Prepayment of Rents	  	16
	6.06	 	Inspection	  	16
	6.07	 	Books and Records; Financial Reporting	  	17
	6.08	 	Taxes; Operating Expenses; Ground Rents	  	20
	6.09	 	Preservation, Management and Maintenance of Mortgaged Property	  	21
	6.10	 	Property and Liability Insurance	  	23
	6.11	 	Condemnation	  	33
	6.12	 	Environmental Hazards	  	35
	6.13	 	Single Purpose Entity Requirements	  	37
	6.14	 	Repairs and Capital Replacements	  	42
	6.15	 	Residential Leases Affecting the Mortgaged Property	  	43
	6.16	 	Litigation; Government Proceedings	  	44
	6.17	 	Further Assurances and Estoppel Certificates; Lender’s Expenses	  	44
	6.18	 	Cap Collateral	  	44
	6.19	 	Ground Lease	  	44
	6.20	 	ERISA Requirements	  	44
			
	ARTICLE VII	  	TRANSFERS OF THE MORTGAGED PROPERTY OR INTERESTS IN BORROWER	  	
			
	7.01	 	Permitted Transfers	  	45
	7.02	 	Prohibited Transfers	  	46
	7.03	 	Conditionally Permitted Transfers	  	47

  
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	7.04	 	Preapproved Intrafamily Transfers	  	49
	7.05	 	Lender’s Consent to Prohibited Transfers	  	49
			
	ARTICLE VIII	  	SUBROGATION	  	
			
	ARTICLE IX	  	EVENTS OF DEFAULT AND REMEDIES	  	
			
	9.01	 	Events of Default	  	52
	9.02	 	Protection of Lender’s Security; Security Instrument Secures Future Advances	  	56
	9.03	 	Remedies	  	57
	9.04	 	Forbearance	  	57
	9.05	 	Waiver of Marshalling	  	58
			
	ARTICLE X	  	RELEASE; INDEMNITY	  	
			
	10.01	 	Release	  	58
	10.02	 	Indemnity	  	59
			
	ARTICLE XI	  	MISCELLANEOUS PROVISIONS	  	
			
	11.01	 	Waiver of Statute of Limitations, Offsets and Counterclaims	  	63
	11.02	 	Governing Law; Consent to Jurisdiction and Venue	  	64
	11.03	 	Notice	  	64
	11.04	 	Successors and Assigns Bound	  	65
	11.05	 	Joint and Several Liability	  	65
	11.06	 	Relationship of Parties; No Third Party Beneficiary	  	65
	11.07	 	Severability; Amendments	  	65
	11.08	 	Disclosure of Information	  	65
	11.09	 	Determinations by Lender	  	66
	11.10	 	Sale of Note; Change in Servicer; Loan Servicing	  	66
	11.11	 	Supplemental Financing	  	66
	11.12	 	Defeasance	  	70
	11.13	 	Lender’s Rights to Sell or Securitize	  	75
	11.14	 	Cooperation with Rating Agencies and Investors	  	75
	11.15  	 	Time is of the Essence	  	75
			
	ARTICLE XII	  	DEFINITIONS	  	
			
	ARTICLE XIII	  	INCORPORATION OF ATTACHED RIDERS	  	
			
	ARTICLE XIV	  	INCORPORATION OF ATTACHED EXHIBITS	  	

  
 Page iii

 MULTIFAMILY LOAN AND SECURITY AGREEMENT 

THIS MULTIFAMILY LOAN AND SECURITY AGREEMENT (“Loan Agreement”) is dated as of the 8th day of May, 2013 and is made by
and between KBS LEGACY PARTNERS CRYSTAL LLC, a Delaware limited liability company (“Borrower”), and CBRE CAPITAL MARKETS, INC., a Texas corporation (together with its successors and assigns, “Lender”). 

RECITAL 

Lender has agreed to make and Borrower has agreed to accept a loan in the original principal amount of $29,380,000.00
(“Loan”). Lender is willing to make the Loan to Borrower upon the terms and subject to the conditions set forth in this Loan Agreement. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of these promises, the mutual
covenants contained in this Loan Agreement and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 

 

	ARTICLE I	DEFINITIONS; CONSTRUCTION. 

  

	1.01	 Defined Terms. Each defined term in this Loan Agreement will have the meaning ascribed to that term in Article XII unless otherwise defined
in this Loan Agreement. 

  

	1.02	 Construction. The captions and headings of the Articles and Sections of this Loan Agreement are for convenience only and will be disregarded
in construing this Loan Agreement. Any reference in this Loan Agreement to an “Exhibit,” an “Article” or a “Section” will, unless otherwise explicitly provided, be construed as referring, respectively, to an Exhibit
attached to this Loan Agreement or to an Article or Section of this Loan Agreement. All Exhibits and Riders attached to or referred to in this Loan Agreement are incorporated by reference in this Loan Agreement. Any reference in this Loan
Agreement to a statute or regulation will be construed as referring to that statute or regulation as amended from time to time. Use of the singular in this Loan Agreement includes the plural and use of the plural includes the singular. As used in
this Loan Agreement, the term “including” means “including, but not limited to” and the term “includes” means “includes without limitation.” The use of one gender includes the other gender, as the context may
require. Unless the context requires otherwise, (a) any definition of or reference to any agreement, instrument or other document in this Loan Agreement will be construed as referring to such agreement, instrument or other document as from time
to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth in this Loan Agreement), and (b) any reference in this Loan Agreement to any Person will be construed to
include such Person’s successors and assigns. 

  

			
		  	Page 1

	ARTICLE II	LOAN. 

  

	2.01	 Loan Terms. The Loan will be evidenced by the Note and will bear interest and be paid in accordance with the payment terms set forth in the
Note. 

  

	2.02	 Prepayment Premium. Borrower will be required to pay a prepayment premium in connection with certain prepayments of the Indebtedness,
including a payment made after Lender’s exercise of any right of acceleration of the Indebtedness, as provided in the Note. 

  

	2.03	 Exculpation. Borrower’s personal liability for payment of the Indebtedness and for performance of the other obligations to be performed
by it under this Loan Agreement is limited in the manner, and to the extent, provided in the Note. 

  

	2.04	 Application of Payments. If at any time Lender receives, from Borrower or otherwise, any amount applicable to the Indebtedness which is less
than all amounts due and payable at such time, then Lender may apply that payment to amounts then due and payable in any manner and in any order determined by Lender (unless otherwise required by applicable law), in Lender’s sole and absolute
discretion. Neither Lender’s acceptance of an amount that is less than all amounts then due and payable, nor Lender’s application of such payment in the manner authorized, will constitute or be deemed to constitute either a waiver of the
unpaid amounts or an accord and satisfaction. Notwithstanding the application of any such amount to the Indebtedness, Borrower’s obligations under this Loan Agreement, the Note and all other Loan Documents will remain unchanged.

  

	2.05	 Usury Savings. If any applicable law limiting the amount of interest or other charges permitted to be collected from Borrower is interpreted
so that any charge provided for in any Loan Document, whether considered separately or together with other charges levied in connection with any other Loan Document, violates that law, and Borrower is entitled to the benefit of that law, that charge
is hereby reduced to the extent necessary to eliminate that violation. The amounts, if any, previously paid to Lender in excess of the permitted amounts will be applied by Lender to reduce the principal amount of the Indebtedness. For the purpose of
determining whether any applicable law limiting the amount of interest or other charges permitted to be collected from Borrower has been violated, all Indebtedness which constitutes interest, as well as all other charges levied in connection with
the Indebtedness which constitute interest, will be deemed to be allocated and spread ratably over the stated term of the Note. Unless otherwise required by applicable law, such allocation and spreading will be effected in such a manner that the
rate of interest so computed is uniform throughout the stated term of the Note. 

  

	2.06	 Adjustable Rate Mortgage - Third Party Cap Agreement. If (a) the Note does not provide for interest to accrue at an adjustable or
variable interest rate, and (b) a third party Cap Agreement is not required, then this Section 2.06 and Section 3.04 will be of no force or effect. 

 

	 	(a)	 So long as there is no Event of Default, Lender or Loan Servicer will remit to Borrower each Cap Payment received by Lender or Loan Servicer with
respect to 

  

			
		  	Page 2

	 	 
any month for which Borrower has paid in full the monthly installment of principal and interest or interest only, as applicable, due under the Note. Alternatively, at Lender’s option, so
long as there is no Event of Default, Lender may apply a Cap Payment received by Lender or Loan Servicer with respect to any month to the applicable monthly payment of accrued interest due under the Note if Borrower has paid in full the remaining
portion of such monthly payment of principal and interest or interest only, as applicable. 

  

	 	(b)	 Neither the existence of a Cap Agreement nor anything in this Loan Agreement will relieve Borrower of its primary obligation to timely pay in full
all amounts due under the Note and otherwise due on account of the Indebtedness. 

  

	ARTICLE III	LOAN SECURITY AND GUARANTY. 

  

	3.01	 Security Instrument. Borrower will execute the Security Instrument dated of even date with this Loan Agreement. The Security Instrument will
be recorded in the applicable land records in the Property Jurisdiction. 

  

	3.02	 Reserve Funds. 

  

	 	(a)	 Security Interest. To secure Borrower’s obligations under this Loan Agreement and to further secure Borrower’s obligations under
the Note and the other Loan Documents, Borrower conveys, pledges, transfers and grants to Lender a security interest pursuant to the Uniform Commercial Code of the Property Jurisdiction or any other applicable law in and to all money in the Reserve
Funds, as the same may increase or decrease from time to time, all interest and dividends thereon and all proceeds thereof. 

  

	 	(b)	 Supplemental Loan. If this Loan Agreement is entered into in connection with a Supplemental Loan and if the same Person is or becomes both
Senior Lender and Supplemental Lender, then: 

  

	 	(i)	 Borrower assigns and grants to Supplemental Lender a security interest in the Reserve Funds established in connection with the Senior Indebtedness
as additional security for all of Borrower’s obligations under the Supplemental Note. 

  

	 	(ii)	 In addition, Borrower assigns and grants to Senior Lender a security interest in the Reserve Funds established in connection with the Supplemental
Indebtedness as additional security for all of Borrower’s obligations under the Senior Note. 

  

	 	(iii)	 It is the intention of Borrower that all amounts deposited by Borrower in connection with either the Senior Loan Documents, the Supplemental Loan
Documents, or both, constitute collateral for the Supplemental Indebtedness secured by the Supplemental Instrument and the Senior Indebtedness secured by the Senior Instrument, with the application of

  

			
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such amounts to such Senior Indebtedness or Supplemental Indebtedness to be at the discretion of Senior Lender and Supplemental Lender. 

 

	3.03	 Uniform Commercial Code Security Agreement. This Loan Agreement is also a security agreement under the Uniform Commercial Code for any of the
Mortgaged Property which, under applicable law, may be subjected to a security interest under the Uniform Commercial Code, for the purpose of securing Borrower’s obligations under this Loan Agreement and to further secure Borrower’s
obligations under the Note, Security Instrument and other Loan Documents, whether such Mortgaged Property is owned now or acquired in the future, and all products and cash and non-cash proceeds thereof (collectively, “UCC
Collateral”), and by this Loan Agreement, Borrower grants to Lender a security interest in the UCC Collateral. 

  

	3.04	 Cap Collateral. Reserved. 

  

	3.05	 Guaranty. Borrower will cause each Guarantor (if any) to execute a Guaranty of all or a portion of Borrower’s obligations under the Loan
Documents effective as of the date of this Loan Agreement. 

  

	ARTICLE IV	RESERVE FUNDS AND REQUIREMENTS. 

  

	4.01	Reserves Generally. 

  

	 	(a)	 Establishment of Reserve Funds; Investment of Deposits. Unless otherwise provided in Section 4.04, each Reserve Fund will be established
on the date of this Loan Agreement and all Reserve Funds will be deposited in an Eligible Account at an Eligible Institution or invested in “permitted investments” as then defined and required by the Rating Agencies. Lender will not be
obligated to open additional accounts or deposit Reserve Funds in additional institutions when the amount of any Reserve Fund exceeds the maximum amount of the federal deposit insurance or guaranty. Borrower acknowledges and agrees that it will not
have the right to direct Lender as to any specific investment of monies in any Reserve Fund. Lender will not be responsible for any losses resulting from investment of monies in any Reserve Fund or for obtaining any specific level or percentage of
earnings on such investment. 

  

	 	(b)	 Interest on Reserve Funds; Trust Funds. Unless applicable law requires, Lender will not be required to pay Borrower any interest, earnings or
profits on the Reserve Funds. Any amounts deposited with Lender under this Article IV will not be trust funds, nor will they operate to reduce the Indebtedness, unless applied by Lender for that purpose pursuant to the terms of this Loan Agreement.

  

	 	(c)	 Use of Reserve Funds. Each Reserve Fund will, except as otherwise provided in this Loan Agreement, be used for the sole purpose of paying, or
reimbursing Borrower for payment of, the item(s) for which the applicable Reserve Fund was established. Borrower acknowledges and agrees that, except as specified in this Loan Agreement, monies in one Reserve Fund will not be used to pay, or

  

			
		  	Page 4

	 	 
reimburse Borrower for, matters for which another Reserve Fund has been established. 

  

	 	(d)	 Termination of Reserve Funds. Upon the payment in full of the Indebtedness, Lender will pay to Borrower all funds remaining in any Reserve
Funds. 

  

	4.02	Reserves for Taxes, Insurance and Other Charges. 

  

	 	(a)	 Deposits to Imposition Reserve Deposits. Borrower will deposit with Lender on the day monthly installments of principal or interest, or both,
are due under the Note (or on another day designated in writing by Lender), until the Indebtedness is paid in full, an additional amount sufficient to accumulate with Lender the entire sum required to pay, when due, the items marked
“Collect” below. Except as provided in Section 4.02(e), Lender will not require Borrower to make Imposition Reserve Deposits with respect to the items marked “Deferred” below. 

 

							
		  	[Deferred]	 	Hazard Insurance premiums or premiums for other Insurance required by Lender under Section 6.10	  	
				
		  	[Collect]	 	Taxes and payments in lieu of taxes	  	
				
		  	[Deferred]	 	water and sewer charges that could become a Lien on the Mortgaged Property	  	
				
		  	[N/A]	 	Ground Rents	  	
				
		  	[Deferred]	 	assessments or other charges that could become a Lien on the Mortgaged Property	  	

 The amounts deposited pursuant to this Section 4.02(a) are collectively referred to
in this Loan Agreement as the “Imposition Reserve Deposits.” The obligations of Borrower for which the Imposition Reserve Deposits are required are collectively referred to in this Loan Agreement as “Impositions.”
The amount of the Imposition Reserve Deposits must be sufficient to enable Lender to pay each Imposition before the last date upon which such payment may be made without any penalty or interest charge being added. Lender will maintain records
indicating how much of the monthly Imposition Reserve Deposits and how much of the aggregate Imposition Reserve Deposits held by Lender are held for the purpose of paying Taxes, Insurance premiums, Ground Rent (if applicable) and each other
Imposition. 
  

	 	(b)	 Disbursement of Imposition Reserve Deposits. Lender will apply the Imposition Reserve Deposits to pay Impositions so long as no Event of
Default has occurred and is continuing. Lender will pay all Impositions from the Imposition Reserve Deposits held by Lender upon Lender’s receipt of a bill or invoice for an Imposition. If Borrower holds a ground lessee interest in the
Mortgaged Property and Imposition Reserve Deposits are collected for Ground Rent, then Lender will pay the monthly or other periodic installments of Ground Rent from the 

  

			
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Imposition Reserve Deposits, whether or not Lender receives a bill or invoice for such installments. Lender will have no obligation to pay any Imposition to the extent it exceeds the amount of
the Imposition Reserve Deposits then held by Lender. Lender may pay an Imposition according to any bill, statement or estimate from the appropriate public office, Ground Lessor (if applicable) or insurance company without inquiring into the accuracy
of the bill, statement or estimate or into the validity of the Imposition. 

  

	 	(c)	 Excess or Deficiency of Imposition Reserve Deposits. If at any time the amount of the Imposition Reserve Deposits held by Lender for payment
of a specific Imposition exceeds the amount reasonably deemed necessary by Lender, the excess will be credited against future installments of Imposition Reserve Deposits. If at any time the amount of the Imposition Reserve Deposits held by Lender
for payment of a specific Imposition is less than the amount reasonably estimated by Lender to be necessary, Borrower will pay to Lender the amount of the deficiency within 15 days after Notice from Lender. 

 

	 	(d)	 Delivery of Invoices. Borrower will promptly deliver to Lender a copy of all notices of, and invoices for, Impositions.

  

	 	(e)	 Deferral of Collection of Any Imposition Reserve Deposits; Delivery of Receipts. If Lender does not collect an Imposition Reserve Deposit
with respect to an Imposition either marked “Deferred” in Section 4.02(a) or pursuant to a separate written deferral by Lender, then on or before the date each such Imposition is due, or on the date this Loan Agreement requires each
such Imposition to be paid, Borrower will provide Lender with proof of payment of each such Imposition. Upon Notice to Borrower, Lender may revoke its deferral and require Borrower to deposit with Lender any or all of the Imposition Reserve Deposits
listed in Section 4.02(a), regardless of whether any such item is marked “Deferred” (i) if Borrower does not timely pay any of the Impositions, (ii) if Borrower fails to provide timely proof to Lender of such payment, or
(iii) at any time during the existence of an Event of Default. 

  

	4.03	Repairs; Repair Reserve Fund. See Rider. 

  

	4.04	Replacement Reserve Fund. See Rider. 

  

	4.05	Rental Achievement Provisions. Reserved. 

  

	4.06	Reserved. 

  

	4.07	External Cap Agreement Reserve Fund. Reserved. 

  

			
		  	Page 6

	ARTICLE V	REPRESENTATIONS AND WARRANTIES. 

Borrower represents and warrants to Lender as follows as of the date of this Loan Agreement: 

 

	5.01	 Review of Documents. Borrower has reviewed (a) the Note, (b) the Security Instrument, (c) the Commitment Letter, and
(d) all other Loan Documents. 

  

	5.02	 Condition of Mortgaged Property. Except as Borrower may have disclosed to Lender in writing in connection with the issuance of the Commitment
Letter, the Mortgaged Property has not been damaged by fire, water, wind or other cause of loss, or any previous damage to the Mortgaged Property has been fully restored. 

 

	5.03	 No Condemnation. No part of the Mortgaged Property has been taken in Condemnation or other like proceeding, and, to the best of
Borrower’s knowledge after due inquiry and investigation, no such proceeding is pending or threatened for the partial or total Condemnation or other taking of the Mortgaged Property. 

 

	5.04	 Actions; Suits; Proceedings. There are no judicial, administrative, mediation or arbitration actions, suits or proceedings pending or, to the
best of Borrower’s knowledge, threatened in writing against or affecting Borrower (and, if Borrower is a limited partnership, any of its general partners or if Borrower is a limited liability company, any member of Borrower) or the Mortgaged
Property which, if adversely determined, would have a Material Adverse Effect. 

  

	5.05	 Environmental. Except as previously disclosed by Borrower to Lender in writing (which written disclosure may be in certain environmental
assessments and other written reports accepted by Lender in connection with the funding of the Indebtedness and dated prior to the date of this Loan Agreement), each of the following is true: 

 

	 	(a)	 Borrower has not at any time engaged in, caused or permitted any Prohibited Activities or Conditions on the Mortgaged Property.

  

	 	(b)	 To the best of Borrower’s knowledge after due inquiry and investigation, no Prohibited Activities or Conditions exist or have existed on the
Mortgaged Property. 

  

	 	(c)	 The Mortgaged Property does not now contain any underground storage tanks, and, to the best of Borrower’s knowledge after due inquiry and
investigation, the Mortgaged Property has not contained any underground storage tanks in the past. If there is an underground storage tank located on the Mortgaged Property that has been previously disclosed by Borrower to Lender in writing, that
tank complies with all requirements of Hazardous Materials Laws. 

  

	 	(d)	 To the best of Borrower’s knowledge after due inquiry and investigation, Borrower has complied with all Hazardous Materials Laws, including all
requirements for notification regarding releases of Hazardous Materials. Without limiting the generality of the foregoing, all Environmental Permits required for the operation of the Mortgaged Property in accordance with Hazardous Materials

  

			
		  	Page 7

	 	 
Laws now in effect have been obtained and all such Environmental Permits are in full force and effect. 

 

	 	(e)	 To the best of Borrower’s knowledge after due inquiry and investigation, no event has occurred with respect to the Mortgaged Property that
constitutes, or with the passage of time or the giving of notice, or both, would constitute, noncompliance with the terms of any Environmental Permit. 

 

	 	(f)	 There are no actions, suits, claims or proceedings pending or, to the best of Borrower’s knowledge after due inquiry and investigation,
threatened in writing, that involve the Mortgaged Property and allege, arise out of, or relate to any Prohibited Activity or Condition. 

  

	 	(g)	 Borrower has received no actual or constructive notice of any written complaint, order, notice of violation or other communication from any
Governmental Authority with regard to air emissions, water discharges, noise emissions or Hazardous Materials, or any other environmental, health or safety matters affecting the Mortgaged Property or any property that is adjacent to the Mortgaged
Property. 

  

	5.06	 Commencement of Work; No Labor or Materialmen’s Claims. Except as set forth on Exhibit E, prior to the recordation of the
Security Instrument, no work of any kind has been or will be commenced or performed upon the Mortgaged Property, and no materials or equipment have been or will be delivered to or upon the Mortgaged Property, for which the contractor, subcontractor
or vendor continues to have any rights including the existence of or right to assert or file a mechanic’s or materialman’s Lien. If any such work of any kind has been commenced or performed upon the Mortgaged Property, or if any such
materials or equipment have been ordered or delivered to or upon the Mortgaged Property, then prior to the execution of the Security Instrument, Borrower has satisfied each of the following conditions: 

 

	 	(a)	 Borrower has fully disclosed in writing to the title insurance company issuing the mortgagee title insurance policy insuring the Lien of the
Security Instrument that work has been commenced or performed on the Mortgaged Property, or materials or equipment have been ordered or delivered to or upon the Mortgaged Property. 

 

	 	(b)	 Borrower has obtained and delivered to Lender and the title company issuing the mortgagee title insurance policy insuring the Lien of the Security
Instrument Lien waivers from all contractors, subcontractors, suppliers or any other applicable party, pertaining to all work commenced or performed on the Mortgaged Property, or materials or equipment ordered or delivered to or upon the Mortgaged
Property. 

 Borrower represents and warrants that all parties furnishing labor and materials
for which a Lien or claim of Lien may be filed against the Mortgaged Property have been paid in full and, except for such Liens or claims insured against by the policy of title insurance to be issued in connection with the Loan, there are no
mechanics’, laborers’ or 

  

			
		  	Page 8

 
materialmen’s Liens or claims outstanding for work, labor or materials affecting the Mortgaged Property, whether prior to, equal with or subordinate to the Lien of the Security Instrument.

  

	5.07	 Compliance with Applicable Laws and Regulations. To the best of Borrower’s knowledge after due inquiry and investigation, (a) all
Improvements and the use of the Mortgaged Property comply with all applicable statutes, rules and regulations, including all applicable statutes, rules and regulations pertaining to requirements for equal opportunity, anti-discrimination, fair
housing, environmental protection, zoning and land use (“legal, non-conforming” status with respect to uses or structures will be considered to comply with zoning and land use requirements for the purposes of this representation),
(b) the Improvements comply with applicable health, fire, and building codes, and (c) there is no evidence of any illegal activities relating to controlled substances on the Mortgaged Property. 

 

	5.08	 Access; Utilities; Tax Parcels. The Mortgaged Property (a) has ingress and egress via a publicly dedicated right of way or via an
irrevocable easement permitting ingress and egress, (b) is served by public utilities and services generally available in the surrounding community or otherwise appropriate for the use in which the Mortgaged Property is currently being
utilized, and (c) constitutes one or more separate tax parcels. 

  

	5.09	 Licenses and Permits. Borrower, any commercial tenant of the Mortgaged Property and/or any operator of the Mortgaged Property is in
possession of all material licenses, permits and authorizations required for use of the Mortgaged Property, which are valid and in full force and effect as of the date of this Loan Agreement. 

 

	5.10	 No Other Interests. To the best of Borrower’s knowledge after due inquiry and investigation, no Person has (a) any possessory
interest in the Mortgaged Property or right to occupy the Mortgaged Property except under and pursuant to the provisions of existing Leases by and between tenants and Borrower (a form of residential lease having been previously provided to Lender
together with the material terms of any and all Non-Residential Leases at the Mortgaged Property), or (b) an option to purchase the Mortgaged Property or an interest in the Mortgaged Property, except as has been disclosed to and approved in
writing by Lender. 

  

	5.11	 Term of Leases. All Leases for residential dwelling units with respect to the Mortgaged Property are on forms acceptable to Lender, are for
initial terms of at least 6 months and not more than 2 years (unless otherwise approved in writing by Lender), and do not include options to purchase. 

 

	5.12	 No Prior Assignment; Prepayment of Rents. Borrower has (a) not executed any prior assignment of Rents (other than an assignment of Rents
securing any prior indebtedness that is being assigned to Lender, or paid off and discharged with the proceeds of the Loan evidenced by the Note or, if this Loan Agreement is entered into in connection with a Supplemental Loan, other than an
assignment of Rents securing any Senior Indebtedness), and (b) not performed any acts and has not executed, and will not execute, any instrument which would prevent Lender from exercising its rights under any Loan

  

			
		  	Page 9

	 	 
Document. At the time of execution of this Loan Agreement, unless otherwise approved by Lender in writing, there has been no prepayment of any Rents for more than 2 months prior to the due
dates of such Rents. 

  

	5.13	 Illegal Activity. No portion of the Mortgaged Property has been or will be purchased with the proceeds of any illegal activity.

  

	5.14	 Taxes Paid. Borrower has filed all federal, state, county and municipal tax returns required to have been filed by Borrower, and has paid all
Taxes which have become due pursuant to such returns or to any notice of assessment received by Borrower, and Borrower has no knowledge of any basis for additional assessment with respect to such taxes. To the best of Borrower’s knowledge after
due inquiry and investigation, there are not presently pending any special assessments against the Mortgaged Property or any part of the Mortgaged Property. 

 

	5.15	 Title Exceptions. To the best of Borrower’s knowledge after due inquiry and investigation, none of the items shown in the schedule of
exceptions to coverage in the title policy issued to and accepted by Lender contemporaneously with the execution of this Loan Agreement and insuring Lender’s interest in the Mortgaged Property will have a Material Adverse Effect on the
(a) ability of Borrower to pay the Loan in full, (b) ability of Borrower to use all or any part of the Mortgaged Property in the manner in which the Mortgaged Property is being used on the Closing Date, except as set forth in
Section 6.03, (c) operation of the Mortgaged Property, or (d) value of the Mortgaged Property. 

  

	5.16	 No Change in Facts or Circumstances. 

  

	 	(a)	 All information in the application for the Loan submitted to Lender, including all financial statements for the Mortgaged Property, Borrower, and
any Borrower Principal, and all Rent Schedules, reports, certificates, and any other documents submitted in connection with the application (collectively, “Loan Application”) is complete and accurate in all material respects as of
the date such information was submitted to Lender. 

  

	 	(b)	 There has been no Material Adverse Change since the Loan Application was submitted to Lender in any fact or circumstance that would make any
information submitted as part of the Loan Application incomplete or inaccurate. 

  

	 	(c)	 The organizational structure of Borrower is as set forth in Exhibit H. 

 

	5.17	 Financial Statements. The financial statements of Borrower and each Borrower Principal furnished to Lender as part of the Loan Application
reflect in each case a positive net worth as of the date of the applicable financial statement. 

  

			
		  	Page 10

	5.18	ERISA – Borrower Status. Borrower is not one of the following: 

 

	 	(a)	 An “investment company,” or a company under the Control of an “investment company,” as such terms are defined in the Investment
Company Act of 1940, as amended. 

  

	 	(b)	 An “employee benefit plan,” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA and the assets of Borrower do
not constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101. 

  

	5.19	 No Fraudulent Transfer or Preference. No Borrower or Borrower Principal (a) has made, or is making in connection with and as security
for the Loan, a transfer of an interest in property of the Borrower or Borrower Principal to or for the benefit of Lender or otherwise as security for any of the obligations under the Loan Documents which is or could constitute a voidable preference
under federal bankruptcy, state insolvency or similar applicable creditors’ rights laws, or (b) has made, or is making in connection with the Loan, a transfer (including any transfer to or for the benefit of an insider under an employment
contract) of an interest of Borrower or any Borrower Principal in property, or (c) has incurred, or is incurring in connection with the Loan, any obligation (including any obligation to or for the benefit of an insider under an employment
contract) within 2 years of the date of this Loan Agreement which is or could constitute a fraudulent transfer under federal bankruptcy, state insolvency, or similar applicable creditors’ rights laws. 

 

	5.20	 No Insolvency or Judgment. 

  

	 	(a)	 No Pending Proceedings or Judgments. No Borrower or Borrower Principal is (i) the subject of or a party to (other than as a creditor)
any completed or pending bankruptcy, reorganization or insolvency proceeding, or (ii) the subject of any judgment unsatisfied of record or docketed in any court located in the United States. 

 

	 	(b)	 Insolvency. Borrower is not presently insolvent, and the Loan will not render Borrower insolvent. As used in this Section, the term
“insolvent” means that the total of all of a Person’s liabilities (whether secured or unsecured, contingent or fixed, or liquidated or unliquidated) is in excess of the value of all of the assets of the Person that are available to
satisfy claims of creditors. 

  

	5.21	 Working Capital. After the Loan is made, Borrower intends to have sufficient working capital, including cash flow from the Mortgaged Property
or other sources, not only to adequately maintain the Mortgaged Property, but also to pay all of Borrower’s outstanding debts as they come due (other than any balloon payment due upon the maturity of the Loan). Lender acknowledges that no
members or partners of Borrower or any Borrower Principal will be obligated to contribute equity to Borrower for purposes of providing working capital to maintain the Mortgaged Property or to pay Borrower’s

  

			
		  	Page 11

	 	 
outstanding debts except as may otherwise be required under their organizational documents. 

  

	5.22	 Cap Collateral. Reserved. 

  

	5.23	 Ground Lease. Reserved. 

  

	5.24	 Purpose of Loan. The purpose of the Loan is as indicated by the checked boxes below: 

 

	 	[      ]	 Refinance Loan: The Loan is a refinancing of existing indebtedness and, except to the extent specifically required by Lender, there is to be
no change in the ownership of either the Mortgaged Property or Borrower Principals. The intended use of any cash received by Borrower from Lender, to the extent applicable, in connection with the refinancing has been fully disclosed to Lender.

  

	 	[ X ]	 Acquisition Loan: All of the consideration given or received or to be given or received in connection with the acquisition of the Mortgaged
Property has been fully disclosed to Lender. The Mortgaged Property was or will be purchased from FCP Crystal Park, LLC, a Maryland limited liability company (“Property Seller”). No Borrower or Borrower Principal has or had,
directly or indirectly (through a family member or otherwise), any interest in the Property Seller and the acquisition of the Mortgaged Property is an arm’s-length transaction. To the best of Borrower’s knowledge after due inquiry and
investigation, the purchase price of the Mortgaged Property represents the fair market value of the Mortgaged Property and Property Seller is not or will not be insolvent subsequent to the sale of the Mortgaged Property.

  

	 	[      ]	 Supplemental Loan: The Loan is a Supplemental Loan and, except to the extent specifically required or approved by Lender, there has been no
change in the ownership of either the Mortgaged Property or Borrower Principals since the date of the Senior Note. The intended use of any cash received by Borrower from Lender, to the extent applicable, in connection with the refinancing has been
fully disclosed to Lender. 

  

	 	[      ]	 Cross-Collateralized/Cross-Defaulted Loan Pool: The Loan is part of a cross-collateralized/cross-defaulted pool of loans described as
follows: 

           
  being simultaneously made to Borrower and/or Borrower’s Affiliates 

             made previously to Borrower and/or
Borrower’s Affiliates 
 The intended use of any cash received by Borrower from Lender, to the extent
applicable, in connection with the Loan and the other loans comprising the cross-collateralized/cross-defaulted loan pool has been fully disclosed to Lender. 
  

	5.25	 Survival. The representations and warranties set forth in this Loan Agreement will survive until the Indebtedness is paid in full; however,
the representations and warranties 

  

			
		  	Page 12

	 	 
set forth in Section 5.05 will survive beyond repayment of the entire Indebtedness, to the extent provided in Section 10.02(i). 

 

	ARTICLE VI	BORROWER COVENANTS. 

  

	6.01	 Compliance with Laws. Borrower will comply with all laws, ordinances, rules, regulations and requirements of any Governmental Authority
having jurisdiction over the Mortgaged Property and all licenses and permits and all recorded covenants and agreements relating to or affecting the Mortgaged Property, including all laws, ordinances, regulations, requirements and covenants
pertaining to health and safety, construction of improvements on the Mortgaged Property, Repairs, Capital Replacements, fair housing, disability accommodation, zoning and land use, applicable building codes, special use permits and environmental
regulations, Leases and the maintenance and disposition of tenant security deposits. Borrower will take appropriate measures to prevent, and will not engage in or knowingly permit, any illegal activities at the Mortgaged Property, including those
that could endanger tenants or visitors, result in damage to the Mortgaged Property, result in forfeiture of the Mortgaged Property, or otherwise materially impair the Lien created by the Security Instrument or Lender’s interest in the
Mortgaged Property. Borrower will at all times maintain records sufficient to demonstrate compliance with the provisions of this Section 6.01. 

  

	6.02	 Compliance with Organizational Documents. Borrower will at all times comply with all laws, regulations and requirements of any Governmental
Authority relating to Borrower’s formation, continued existence and good standing in its state of formation and, if different, in the Property Jurisdiction. Borrower will at all times comply with its organizational documents, including its
partnership agreement (if Borrower is a partnership), its by-laws (if Borrower is a corporation or housing cooperative corporation or association) or its operating agreement (if Borrower is a limited liability company or tenancy-in-common). If
Borrower is a housing cooperative corporation or association, Borrower will at all times maintain its status as a “cooperative housing corporation” as such term is defined in Section 216(b) of the Internal Revenue Code of 1986, as
amended, or any successor statute thereto. 

  

	6.03	 Use of Mortgaged Property. Unless required by applicable law, without the prior written consent of Lender, Borrower will not take any of the
following actions: 

  

	 	(a)	 Allow changes in the use for which all or any part of the Mortgaged Property is being used at the time this Loan Agreement is executed.

  

	 	(b)	 Convert any individual dwelling units or common areas to commercial use. 

 

	 	(c)	 Initiate a change in the zoning classification of the Mortgaged Property or acquiesce to a change in the zoning classification of the Mortgaged
Property. 

  

	 	(d)	 Establish any condominium or cooperative regime with respect to the Mortgaged Property beyond any which may be in existence on the date of this Loan
Agreement. 

  

			
		  	Page 13

	 	(e)	 Combine all or any part of the Mortgaged Property with all or any part of a tax parcel which is not part of the Mortgaged Property.

  

	 	(f)	 Subdivide or otherwise split any tax parcel constituting all or any part of the Mortgaged Property. 

 

	 	(g)	 Add to or change any location at which any of the Mortgaged Property is stored, held or located unless Borrower (i) gives Notice to Lender
within 30 days after the occurrence of such addition or change, (ii) executes and delivers to Lender any modifications of or supplements to this Loan Agreement that Lender may require, and (iii) authorizes the filing of any financing
statement which may be filed in connection with this Loan Agreement, as Lender may require. 

Notwithstanding anything contained in this Section to the contrary, if Borrower is a housing cooperative corporation or
association, Lender acknowledges and consents to Borrower’s use of the Mortgaged Property as a housing cooperative. 
  

	6.04	 Non-Residential Leases. 

  

	 	(a)	 Prohibited New Non-Residential Leases or Modified Non-Residential Leases. Except as set forth in Section 6.04(b), Borrower will not
enter into any New Non-Residential Lease, enter into any Modified Non-Residential Lease or terminate any Non-Residential Lease (including any Non-Residential Lease in existence on the date of this Loan Agreement) without the prior written consent of
Lender. 

  

	 	(b)	 New Non-Residential Leases or Modified Non-Residential Leases for which Lender’s Consent is Not Required. Lender’s consent will not
be required for Borrower to enter into a Modified Non-Residential Lease or a New Non-Residential Lease, provided that the Modified Non-Residential Lease or New Non-Residential Lease satisfies each of the following requirements:

  

	 	(i)	 The tenant under the New Non-Residential Lease or Modified Non-Residential Lease is not an Affiliate of Borrower or any Guarantor.

  

	 	(ii)	 The terms of the New Non-Residential Lease or Modified Non-Residential Lease are at least as favorable to Borrower as those customary in the
applicable market at the time Borrower enters into the New Non-Residential Lease or Modified Non-Residential Lease. 

  

	 	(iii)	 The Rents paid to Borrower pursuant to the New Non-Residential Lease or Modified Non-Residential Lease are not less than 90% of the rents paid to
Borrower pursuant to the Non-Residential Lease, if any, for that portion of the Mortgaged Property that was in effect prior to the New Non-Residential Lease or Modified Non-Residential Lease. 

 

	 	(iv)	 The term of the New Non-Residential Lease or Modified Non-Residential Lease, including any option to extend, is 10 years or less.

  

			
		  	Page 14

	 	(v)	 Any New Non-Residential Lease must provide that the space may not be used or operated, in whole or in part, for any of the following:

  

	 	(A)	 The operation of a so-called “head shop” or other business devoted to the sale of articles or merchandise normally used or associated with
illegal or unlawful activities such as, but not limited to, the sale of paraphernalia used in connection with marijuana or controlled drugs or substances. 

 

	 	(B)	 A gun shop, shooting gallery or firearms range. 

  

	 	(C)	 A so-called massage parlor or any business which sells, rents or permits the viewing of so-called “adult” or pornographic materials such
as, but not limited to, adult magazines, books, movies, photographs, sexual aids, sexual articles and sex paraphernalia. 

  

	 	(D)	 Any use involving the sale or distribution of any flammable liquids, gases or other Hazardous Materials. 

 

	 	(E)	 An off-track betting parlor or arcade. 

  

	 	(F)	 A liquor store or other establishment whose primary business is the sale of alcoholic beverages for off-site consumption.

  

	 	(G)	 A burlesque or strip club. 

  

	 	(H)	 Any illegal activity. 

  

	 	(vi)	 The aggregate of the income derived from the space leased pursuant to the New Non-Residential Lease accounts for less than 20% of the gross income
of the Mortgaged Property on the date that Borrower enters into the New Non-Residential Lease. 

  

	 	(vii)	 Such New Non-Residential Lease is not an oil or gas lease, pipeline agreement or other instrument related to the production or sale of oil or
natural gas. 

  

	 	(c)	 Executed Copies of Non-Residential Leases. Borrower will, without request by Lender, deliver a fully executed copy of each Non-Residential
Lease to Lender promptly after such Non-Residential Lease is signed. 

  

	 	(d)	 Subordination and Attornment Requirements. All Non-Residential Leases, regardless of whether Lender’s consent or approval is required,
will specifically include the following provisions: 

  

	 	(i)	 The Lease is subordinate to the Lien of the Security Instrument, with such subordination to be self-executing. 

  

			
		  	Page 15

	 	(ii)	 The tenant will attorn to Lender and any purchaser at a foreclosure sale, such attornment to be self-executing and effective upon acquisition of
title to the Mortgaged Property by any purchaser at a foreclosure sale or by Lender in any manner. 

  

	 	(iii)	 The tenant agrees to execute such further evidences of attornment as Lender or any purchaser at a foreclosure sale may from time to time request.

  

	 	(iv)	 The tenant will, upon receipt of a written request from Lender following the occurrence of and during the continuance of an Event of Default, pay
all Rents payable under the Lease to Lender. 

  

	6.05	 Prepayment of Rents. Borrower will not receive or accept Rent under any Lease (whether a residential Lease or a Non-Residential Lease) for
more than 2 months in advance. 

  

	6.06	 Inspection. 

  

	 	(a)	 Right of Entry. Borrower will permit Lender, its agents, representatives and designees and any interested Governmental Authority to make or
cause to be made entries upon and inspections of the Mortgaged Property to inspect, among other things, (i) Repairs, (ii) Capital Replacements, in process and upon completion, and (iii) Improvements (including environmental
inspections and tests performed by professional inspection engineers) during normal business hours, or at any other reasonable time, upon reasonable Notice to Borrower if the inspection is to include occupied residential units (which Notice need not
be in writing). During normal business hours, or at any other reasonable time, Borrower will also permit Lender to examine all books and records and contracts and bills pertaining to the foregoing. Notice to Borrower will not be required in the case
of an emergency, as determined in Lender’s Discretion, or when an Event of Default has occurred and is continuing. 

  

	 	(b)	 Inspection of Mold. If Lender determines that Mold has or may have developed as a result of a water intrusion event or leak, Lender, at
Lender’s Discretion, may require that a professional inspector inspect the Mortgaged Property to confirm whether Mold has developed and, if so, thereafter as frequently as Lender determines is necessary until any issue with Mold and its
cause(s) are resolved to Lender’s satisfaction. Such inspection will be limited to a visual and olfactory inspection of the area that has experienced the Mold, water intrusion event or leak. Borrower will be responsible for the cost of each
such professional inspection and any remediation deemed to be necessary as a result of the professional inspection. After any issue with Mold is remedied to Lender’s satisfaction, Lender will not require a professional inspection any more
frequently than once every 3 years unless Lender otherwise becomes aware of Mold as a result of a subsequent water intrusion event or leak. 

  

			
		  	Page 16

	 	(c)	 Certification in Lieu of Inspection. If Lender or Loan Servicer determines not to conduct an annual inspection of the Mortgaged Property, and
in lieu thereof Lender requests a certification, Borrower will provide to Lender a factually correct certification, each year that the annual inspection is waived, to the following effect: 

 

			
	 Borrower has not received any written complaint, notice, letter or other written communication from any tenant, Property Manager or
governmental authority regarding mold, fungus, microbial contamination or pathogenic organisms (“Mold”) or any activity, condition, event or omission that causes or facilitates the growth of Mold on or in any part of the Mortgaged Property
or, if Borrower has received any such written complaint, notice, letter or other written communication, that Borrower has investigated and determined that no Mold activity, condition or event exists or alternatively has fully and properly remediated
such activity, condition, event or omission in compliance with the Moisture Management Plan for the Mortgaged Property.
	  	

 If Borrower is unwilling or unable to provide such certification, Lender may require a
professional inspection of the Mortgaged Property at Borrower’s expense. 
  

	6.07	Books and Records; Financial Reporting. 

  

	 	(a)	 Delivery of Books and Records. Borrower will keep and maintain at all times at the Mortgaged Property or the Property Manager’s office,
and upon Lender’s request will make available at the Mortgaged Property (or, at Borrower’s option, at the Property Manager’s office), complete and accurate books of account and records (including copies of supporting bills and
invoices) adequate to reflect correctly the operation of the Mortgaged Property, in accordance with GAAP consistently applied (or such other method which is reasonably acceptable to Lender), and copies of all written contracts, Leases, and other
instruments which affect the Mortgaged Property. The books, records, contracts, Leases and other instruments will be subject to examination and inspection by Lender at any reasonable time. 

 

	 	(b)	 Delivery of Statement of Income and Expenses; Rent Schedule and Other Statements. Borrower will furnish to Lender each of the following:

  

	 	(i)	 Within 25 days after the end of each calendar quarter prior to Securitization and within 35 days after each calendar quarter after Securitization,
each of the following: 

  

	 	(A)	 A Rent Schedule dated no earlier than the date that is 5 days prior to the end of such quarter. 

  

			
		  	Page 17

	 	(B)	 A statement of income and expenses for Borrower’s operation of the Mortgaged Property that is either of the following:

  

	 	(1)	 For the 12 month period ending on the last day of such quarter. 

 

	 	(2)	 If at the end of such quarter Borrower or any Affiliate of Borrower has owned the Mortgaged Property for less than 12 months, for the period
commencing with the acquisition of the Mortgaged Property by Borrower or its Affiliate, and ending on the last day of such quarter. 

  

	 	(ii)	 Within 90 days after the end of each fiscal year of Borrower, each of the following: 

 

	 	(A)	 An annual statement of income and expenses for Borrower’s operation of the Mortgaged Property for that fiscal year.

  

	 	(B)	 A statement of changes in financial position of Borrower relating to the Mortgaged Property for that fiscal year. 

 

	 	(C)	 A balance sheet showing all assets and liabilities of Borrower relating to the Mortgaged Property as of the end of that fiscal year and a profit and
loss statement for Borrower. 

  

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

  

	 	(iii)	 Within 30 days after the date of filing, copies of all tax returns filed by Borrower. 

 

	 	(c)	 Delivery of Borrower Financial Statements Upon Request. Borrower will furnish to Lender each of the following: 

 

	 	(i)	 Upon Lender’s request, in Lender’s sole and absolute discretion prior to a Securitization, and thereafter upon Lender’s request in
Lender’s Discretion, a monthly Rent Schedule and a monthly statement of income and expenses for Borrower’s operation of the Mortgaged Property, in each case within 25 days after the end of each month. 

 

	 	(ii)	 Upon Lender’s request in Lender’s sole and absolute discretion prior to a Securitization, and thereafter upon Lender’s request in
Lender’s Discretion, a statement that identifies all owners of any interest in 

  

			
		  	Page 18

	 	 
Borrower and any Designated Entity for Transfers and the interest held by each (unless Borrower or any Designated Entity for Transfers is a publicly-traded entity in which case such statement of
ownership will not be required), and if Borrower or a Designated Entity for Transfers is a corporation then all officers and directors of Borrower and the Designated Entity for Transfers, and if Borrower or a Designated Entity for Transfers is a
limited liability company then all Managers who are not members, in each case within 10 days after such request. 

  

	 	(iii)	 Upon Lender’s request in Lender’s Discretion, such other financial information or property management information (including information
on tenants under Leases to the extent such information is available to Borrower, copies of bank account statements from financial institutions where funds owned or controlled by Borrower are maintained, and an accounting of security deposits) as may
be required by Lender from time to time, in each case within 30 days after such request. 

  

	 	(iv)	 Upon Lender’s request in Lender’s Discretion, a monthly property management report for the Mortgaged Property, showing the number of
inquiries made and rental applications received from tenants or prospective tenants and deposits received from tenants and any other information requested by Lender within 30 days after such request. However, Lender will not require the
foregoing more frequently than quarterly except when there has been an Event of Default and such Event of Default is continuing, in which case Lender may require Borrower to furnish the foregoing more frequently. 

 

	 	(d)	 Form of Statements; Audited Financials. A natural person having authority to bind Borrower (or the SPE Equity Owner or Guarantor, as
applicable) will certify each of the statements, schedules and reports required by Sections 6.07(b), 6.07(c) and 6.07(f) to be complete and accurate. Each of the statements, schedules and reports required by Sections 6.07(b), 6.07(c)(i) and
(iii) and 6.07(f) will be in such form and contain such detail as Lender may reasonably require. Lender also may require that any of the statements, schedules or reports listed in Sections 6.07(b), 6.07(c) and 6.07(f) be audited at
Borrower’s expense by independent certified public accountants acceptable to Lender, at any time when an Event of Default has occurred and is continuing or at any time that Lender, in its reasonable judgment, determines that audited financial
statements are required for an accurate assessment of the financial condition of Borrower or of the Mortgaged Property. 

  

	 	(e)	 Failure to Timely Provide Financial Statements. If Borrower fails to provide in a timely manner the statements, schedules and reports
required by Sections 6.07(b), 6.07(c) and 6.07(f), Lender will give Notice to Borrower specifying the statements, schedules and reports required by Sections 6.07(b), 6.07(c) and 6.07(f) that Borrower has failed to provide. If Borrower has not
provided the required statements, schedules and reports within 10 Business Days following 

  

			
		  	Page 19

	 	 
such Notice, then (i) Borrower will pay a late fee of $500 for each late statement, schedule or report, plus an additional $500 per month that any such statement, schedule or report
continues to be late, and (ii) Lender will have the right to have Borrower’s books and records audited, at Borrower’s expense, by independent certified public accountants selected by Lender in order to obtain such statements,
schedules and reports, and all related costs and expenses of Lender will become immediately due and payable and will become an additional part of the Indebtedness as provided in Section 9.02. Notice to Borrower of Lender’s exercise of its
rights to require an audit will not be required in the case of an emergency, as determined in Lender’s Discretion, or when an Event of Default has occurred and is continuing. 

 

	 	(f)	 Delivery of Guarantor and SPE Equity Owner Financial Statements Upon Request. Borrower will cause each Guarantor and, at Lender’s
request in Lender’s Discretion, any SPE Equity Owner, to provide to Lender (i) within 90 days after the close of such party’s fiscal year, such party’s balance sheet and profit and loss statement (or if such party is a
natural person, within 90 days after the close of each calendar year, such party’s personal financial statements) in form reasonably satisfactory to Lender and certified by such party to be accurate and complete, and (ii) such
additional financial information (including copies of state and federal tax returns with respect to any SPE Equity Owner but Lender will only require copies of such tax returns with respect to each Guarantor if an Event of Default has occurred and
is continuing) as Lender may reasonably require from time to time and in such detail as reasonably required by Lender. 

  

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

  

	 	(h)	 Credit Reports. Borrower authorizes Lender to obtain a credit report on Borrower at any time. 

 

	6.08	Taxes; Operating Expenses; Ground Rents. 

  

	 	(a)	 Payment of Taxes and Ground Rent. Subject to the provisions of Sections 6.08(c) and (d), Borrower will pay or cause to be paid (i) all
Taxes when due and before the addition of any interest, fine, penalty or cost for nonpayment, and (ii) if Borrower’s interest in the Mortgaged Property is as a Ground Lessee, then the monthly or other periodic installments of Ground Rent
before the last date upon which each such installment may be made without penalty or interest charges being added. 

  

	 	(b)	 Payment of Operating Expenses. Subject to the provisions of Section 6.08(c), Borrower will (i) pay the expenses of operating,
managing, maintaining and repairing the Mortgaged Property (including utilities, Repairs and Capital Replacements) before the last date upon which each such payment may be made without any penalty or interest charge being added, and (ii) pay
Insurance 

  

			
		  	Page 20

	 	 
premiums at least 30 days prior to the expiration date of each policy of Insurance, unless applicable law specifies some lesser period. 

 

	 	(c)	 Payment of Impositions and Reserve Funds. If Lender is collecting Imposition Reserve Deposits pursuant to Article IV, then so long as no
Event of Default exists, Borrower will not be obligated to pay any Imposition for which Imposition Reserve Deposits are being collected, whether Taxes, Insurance premiums, Ground Rent (if applicable) or any other individual Impositions, but only to
the extent that sufficient Imposition Reserve Deposits are held by Lender for the purpose of paying that specific Imposition and Borrower has timely delivered to Lender any bills or premium notices that it has received with respect to that specific
Imposition (other than Ground Rent). Lender will have no liability to Borrower for failing to pay any Impositions to the extent that (i) any Event of Default has occurred and is continuing, (ii) insufficient Imposition Reserve Deposits are
held by Lender at the time an Imposition becomes due and payable, or (iii) Borrower has failed to provide Lender with bills and premium notices as provided in this Section. 

 

	 	(d)	 Right to Contest. Borrower, at its own expense, may contest by appropriate legal proceedings, conducted diligently and in good faith, the
amount or validity of any Imposition other than Insurance premiums and Ground Rent (if applicable), if (i) Borrower notifies Lender of the commencement or expected commencement of such proceedings, (ii) the Mortgaged Property is not in
danger of being sold or forfeited, (iii) if Borrower has not already paid the Imposition, Borrower deposits with Lender reserves sufficient to pay the contested Imposition, if requested by Lender, and (iv) Borrower furnishes whatever
additional security is required in the proceedings or is reasonably requested by Lender, which may include the delivery to Lender of reserves established by Borrower to pay the contested Imposition. 

 

	6.09	Preservation, Management and Maintenance of Mortgaged Property. 

  

	 	(a)	 Maintenance of Mortgaged Property; No Waste. Borrower will keep the Mortgaged Property in good repair, including the replacement of
Personalty and Fixtures with items of equal or better function and quality. Borrower will not commit waste or permit impairment or deterioration of the Mortgaged Property. 

 

	 	(b)	 Abandonment of Mortgaged Property. Borrower will not abandon the Mortgaged Property. 

 

	 	(c)	 Preservation of Mortgaged Property. Borrower will restore or repair promptly, in a good and workmanlike manner, any damaged part of the
Mortgaged Property to the equivalent of its original condition, or such other condition as Lender may approve in writing, whether or not Insurance proceeds or Condemnation awards are available to cover any costs of such Restoration or repair;
provided, however, that Borrower will not be obligated to perform such Restoration or repair if (i) no Event of Default has occurred and is continuing, and (ii) Lender has elected to

  

			
		  	Page 21

	 	 
apply any available Insurance proceeds and/or Condemnation awards to the payment of Indebtedness pursuant to Section 6.10(j) or Section 6.11(d). 

 

	 	(d)	 Property Management. Borrower will provide for professional management of the Mortgaged Property by the Property Manager or by a residential
rental Property Manager satisfactory to Lender at all times under a property management agreement approved by Lender in writing. Borrower will not surrender, terminate, cancel, modify, renew or extend its property management agreement, or enter into
any other agreement relating to the management or operation of the Property with Property Manager or any other Person, or consent to the assignment by the Property Manager of its interest under such property management agreement, in each case
without the consent of Lender, which consent will not be unreasonably withheld. If at any time Lender consents to the appointment of a new Property Manager, such new Property Manager and Borrower will, as a condition of Lender’s consent,
execute an Assignment of Management Agreement in a form acceptable to Lender. If any such replacement Property Manager is an Affiliate of Borrower, and if a nonconsolidation opinion was delivered on the Closing Date, Borrower will deliver to Lender
an updated nonconsolidation opinion in form and substance satisfactory to the Rating Agencies (unless waived by the Rating Agencies) with regard to nonconsolidation. 

 

	 	(e)	 Alteration of Mortgaged Property. 

  

	 	(i)	 Borrower will give Notice to Lender of and, unless otherwise directed in writing by Lender, will appear in and defend any action or proceeding
purporting to affect the Mortgaged Property, Lender’s security or Lender’s rights under this Loan Agreement. Borrower will not (and will not permit any tenant or other Person to) remove, demolish or alter the Mortgaged Property or any part
of the Mortgaged Property, including any removal, demolition or alteration occurring in connection with a rehabilitation of all or part of the Mortgaged Property, except that each of the following is permitted: 

 

	 	(A)	 Repairs or Capital Replacements pursuant to Sections 4.03 or 4.04. 

 

	 	(B)	 Replacement of tangible Personalty. 

  

	 	(C)	 If Borrower is a cooperative housing corporation or association, Repairs or Capital Replacements to the extent permitted with respect to individual
dwelling units under the form of a proprietary lease or occupancy agreement. 

  

	 	(D)	 Repairs and Capital Replacements in connection with making an individual unit ready for a new occupant or pursuant to Sections 6.09(a) and (c).

  

	 	(E)	Repairs made in connection with and pursuant to the Repair Schedule of Work, if applicable. 

  

			
		  	Page 22

	 	(ii)	Reserved. 

  

	 	(f)	 Establishment of MMP. Unless otherwise waived by Lender in writing, Borrower will have or will establish and will adhere to the MMP. If
Borrower is required to have an MMP, Borrower will keep all MMP documentation at the Mortgaged Property or at the Property Manager’s office and available for review by Lender or the Loan Servicer during any annual assessment or other inspection
of the Mortgaged Property that is required by Lender. At a minimum, the MMP must contain a provision for (i) staff training, (ii) information to be provided to tenants, (iii) documentation of the plan, (iv) the appropriate
protocol for incident response and remediation, and (v) routine, scheduled inspections of common space and unit interiors. 

  

	 	(g)	 No Reduction of Housing Cooperative Charges. If Borrower is a housing cooperative corporation or association, until the Indebtedness is paid
in full, Borrower will not reduce the maintenance fees, charges or assessments payable by shareholders or residents under proprietary leases or occupancy agreements below a level which is sufficient to pay all expenses of Borrower, including all
operating and other expenses for the Mortgaged Property and all payments due pursuant to the terms of the Note and any Loan Documents. 

  

	6.10	Property and Liability Insurance. 

  

	 	(a)	 Hazard and Other Insurance. At all times during the term of this Loan Agreement, Borrower will maintain, at its sole cost and expense, for
the mutual benefit of Borrower and Lender, the following Insurance coverages: 

  

	 	(i)	 All-Risks of Physical Loss. Insurance against any peril included within the classification “All Risks of Physical Loss” in amounts
not less than the Replacement Cost of the Mortgaged Property. In all cases where any of the Improvements or the use of the Mortgaged Property will at any time constitute legal non-conforming structures or uses under applicable legal requirements of
any Governmental Authority, the policy referred to in this Section 6.10 will include “Ordinance and Law Coverage,” with “Loss to the Undamaged Portion of the Building,” “Demolition Cost” and “Increased Cost of
Construction” endorsements, in the amount of coverage required by Lender and will either include a “Time Element” endorsement or the business income/rental value Insurance for the Mortgaged Property will be endorsed to cover
income/rent loss arising out of any increased time necessary to repair or rebuild the Mortgaged Property due to the enforcement of any zoning laws. 

  

	 	(ii)	 Commercial General Liability. Commercial general liability Insurance on an occurrence-based policy form that insures against legal liability
resulting from bodily injury, property damage, personal injury and advertising injury, and includes contractual liability coverage and any and all claims, including all legal liability (to the extent insurable) imposed

  

			
		  	Page 23

 
upon Borrower and all Attorneys’ Fees and Costs arising out of or connected with the possession, use, leasing, operation, maintenance or condition of the Mortgaged Property with a combined
limit of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate. 
 In addition, Borrower must
maintain umbrella or excess liability coverage with the following minimum limits: 
  

							
		 	        Number 
of Stories        	  	        
Minimum umbrella or          
excess liability limits    
	  	
		 	1 to 3
 
	  	$1,000,000
 
	  	
		 	4 to 10
 
	  	$3,000,000
 
	  	
		 	11 to 20
 
	  	$5,000,000
 
	  	
		 	Greater than 20
 
	  	$10,000,000
 
	  	

 If the Borrower owns, leases, hires, rents, borrows, uses, or has another use on its
behalf a vehicle in conjunction with the operation of the Mortgaged Property, vehicle liability Insurance of not less than $1,000,000 per occurrence. 
  

	 	(iii)	 Business Income/Rental Value. Business income/rental value Insurance for the Mortgaged Property in an amount equal to at least the effective
gross Rents attributable to the Mortgaged Property for (A) 12 months if the Indebtedness is less than or equal to $50,000,000, and (B) 18 months if the Indebtedness is greater than $50,000,000, based on effective gross Rents for the
immediately preceding year and otherwise sufficient to avoid any co-insurance penalty; coverage will include a 90-day extended period of indemnity if the Indebtedness is equal to or greater than $50,000,000. The waiting period for this coverage will
not exceed 7 days. 

  

	 	(iv)	 Flood. If any portion of the Improvements is located within an area identified by the Federal Emergency Management Agency (or any successor)
as a special flood hazard area (“SFHA”), flood Insurance in an amount equal to the greater of the following: 

  

	 	(A)	 The maximum flood Insurance available under the National Flood Insurance Program (“NFIP”) for each building within a SFHA.

  

	 	(B)	 The sum of the following for each building within a SFHA being insured: 

 

	 	(1)	 The Replacement Cost of all areas of the Improvements below grade. 

  

			
		  	Page 24

	 	(2)	 The Replacement Cost of the bottom two stories (above grade) of the Improvements. 

 

	 	(3)	 Any additional coverage dictated by the nature of the Mortgaged Property as determined by Lender in Lender’s Discretion.

 Such coverage may be purchased through excess carriers if the required coverage exceeds
the maximum Insurance available under the NFIP. 
  

	 	(v)	 Boiler and Machinery. If the Mortgaged Property contains a central heating, ventilation and cooling system (“HVAC System”)
where steam boilers and/or other pressurized systems are in operation and are regulated by the Property Jurisdiction, Insurance providing coverage for damage to the HVAC System or other portions of the Mortgaged Property, if the damage is the result
of an explosion of steam boilers, pressure vessels or similar apparatus now or hereafter installed at the Mortgaged Property, with minimum limits at least equal to the Replacement Cost of the building housing the HVAC System, including the
Replacement Cost of the HVAC System. 

  

	 	(vi)	 Terrorism. Insurance coverage required under Section 6.10(a)(i) through (iii) will cover perils of terrorism and acts of terrorism.
Such coverage may be provided through one or more separate policies, which will be on terms (including amounts) consistent with those required under Section 6.10(a)(i) through (iii). 

 

	 	(vii)	 Builder’s All Risk. During any period of Restoration, builder’s “All Risk” Insurance (including fire and other perils
within the scope of a policy known as a “Causes of Loss – Special Form” or “All Risk” policy) in an amount at least equal to 100% of the sum of the contract or contracts and all materials to complete the Restoration (as
determined by Lender in Lender’s Discretion). 

  

	 	(viii)	 Earthquake. If Lender requires earthquake Insurance, the amount of coverage will be equal to the greater of the following:

  

	 	(A)	 $1,000,000. 

  

	 	(B)	 150% of the difference between the following items: 

 

	 	(1)	 The Replacement Cost of the Mortgaged Property multiplied by the probable maximum loss for the Mortgaged Property, as determined by a Site Specific
Seismic Report. 

  

			
		  	Page 25

	 	(2)	 The Replacement Cost of the Mortgaged Property multiplied by the projected loss with a 20% probable maximum loss. 

Lender will not require earthquake Insurance if the probable maximum loss for the Mortgaged Property is less than 20%.
If any updated reports or other documentation are reasonably required by Lender in order to determine whether such additional Insurance is necessary or prudent, Borrower will pay for all such documentation at its sole cost and expense. 

 

	 	(ix)	 Windstorm. If windstorm and/or windstorm related perils and/or “named storms” (“Windstorm Coverage”) are excluded
from the “All Risks” policy required under Section 6.10(a)(i), Borrower will obtain separate coverage for such risks, either through an endorsement or a separate policy. Windstorm Coverage will be written in an amount equal to 100% of
the Replacement Cost. Business income/rental value Insurance required under Section 6.10(a)(iii) will be in force for all losses covered by Windstorm Coverage. 

 

	 	(x)	 Other. Such other Insurance against loss or damage with respect to the Improvements and Personalty located on the Mortgaged Property as
required by Lender (including liquor/dramshop and Mold Insurance) provided such Insurance is of the kind for risks from time to time customarily insured against and in such minimum coverage amounts and maximum deductibles as are generally required
by institutional lenders for properties comparable to the Mortgaged Property or which Lender may deem necessary in Lender’s Discretion. 

 All Insurance required pursuant to Section 6.10(a)(i) and Section 6.10(a)(iii) through (x) will be referred to as “Hazard Insurance.” 

 

	 	(b)	 Deductibles – Specific Insurance. 

  

	 	(i)	 The Insurance required pursuant to Section 6.10(a)(i) [All Risks of Physical Loss], (iv) [Flood], (v) [Boiler and machinery],
(vi) [Terrorism], (vii) [Builder’s All Risk] and (ix) [Windstorm] will have a per occurrence deductible meeting the following requirements: 

 

	 	(A)	 The deductible will not exceed $50,000 if the Replacement Cost of the Mortgaged Property is less than $10,000,000. 

 

	 	(B)	 The deductible will not exceed $75,000 if the Replacement Cost of the Mortgaged Property is equal to or greater than $10,000,000.

  

	 	(C)	 For Windstorm Coverage the deductible will not exceed 5% of the Replacement Cost if the Mortgaged Property is located (1) in Florida, or
(2) within 50 miles of the coast of any East Coast or Gulf Coast state. 

  

			
		  	Page 26

	 	(D)	 For flood insurance provided under the NFIP, the deductible will comply with the NFIP deductible for the type of improvement insured.

  

	 	(ii)	 Commercial general liability Insurance required pursuant to Section 6.10(a)(ii) will have a maximum per occurrence deductible or self-insured
retention, or combined deductible or self-insured retention that meets the following requirements: 

  

	 	(A)	 The deductible or self-insured retention, as applicable, will not exceed $35,000 if the Indebtedness is less than or equal to $25,000,000.

  

	 	(B)	 The deductible or self-insured retention, as applicable, will not exceed $50,000 if the Indebtedness is greater than $25,000,000.

  

	 	(c)	 Payment of Premiums. All Hazard Insurance premiums and premiums for other Insurance required under this Section 6.10 will be paid in the
manner provided in Article IV, unless Lender has designated in writing another method of payment. 

  

	 	(d)	 Policy Requirements. All policies will be in a form approved by Lender. All policies of Hazard Insurance will include a standard
non-contributing, non-reporting mortgagee clause in favor of, and in a form approved by, Lender. All policies for general liability Insurance will contain a standard additional insured provision, in favor of, and in a form approved by Lender. If any
policy referred to in this Section 6.10 contains a coinsurance clause, such coinsurance clause will be offset by an agreed amount endorsement in an amount not less than the Replacement Cost. All Insurance policies and renewals of Insurance
policies required by this Section 6.10 will be for such periods as Lender may from time to time require. Unless required otherwise by state law, all policies of Hazard Insurance will provide that the insurer will notify the named mortgagee in
writing at least 10 days before the cancelation of the policy for nonpayment of the premium or nonrenewal and at least 30 days before cancelation for any other reason. 

 

	 	(e)	 Evidence of Insurance; Renewals. Borrower will deliver to Lender a legible copy of each Insurance policy (or duplicate original), and
Borrower will promptly deliver to Lender a copy of all renewal and other notices received by Borrower with respect to the policies. Borrower will ensure that the Mortgaged Property is continuously covered by the required Insurance policies and will
deliver to Lender evidence acceptable to Lender in Lender’s Discretion that each policy has been renewed at least 15 days prior to the expiration date of such Insurance policy. If the evidence of a renewal does not include a legible copy of the
renewal policy (or duplicate original), Borrower will deliver a legible copy of such renewal policy (or duplicate original) in a form satisfactory to Lender in Lender’s Discretion prior to the earlier of (i) 60 days after the
expiration date of the original policy, or (ii) the date of any Notice to Lender under Section 6.10(i). 

  

			
		  	Page 27

	 	(f)	Insurance Company Rating Requirements. Borrower will maintain the Insurance coverage described in this Section 6.10 with companies acceptable to Lender
having a rated claims paying ability of at least one of the following: 

  

	 	(i)	“A-” by Fitch, Inc. 

  

	 	(ii)	“A-” by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 

 

	 	(iii)	“A3” by Moody’s Investors Service, Inc. 

  

	 	(iv)	“A-” by A.M. Best Company and a financial size rating by A.M. Best Company of: 

 

	 	(A)	“VII” for companies with an Aggregate Carrier Exposure of $5,000,000 or less. 

 

	 	(B)	“VIII” for companies with an Aggregate Carrier Exposure greater than $5,000,000 and less than or equal to $25,000,000. 

 

	 	(C)	“IX” for companies with an Aggregate Carrier Exposure greater than $25,000,000. 

All insurers providing Insurance required by this Loan Agreement will be authorized to issue Insurance in the Property
Jurisdiction. 
  

	 	(g)	 Compliance With Insurance Requirements. Borrower will comply with all Insurance requirements and will not permit any condition to exist on
the Mortgaged Property that would invalidate any part of any Insurance coverage required under this Loan Agreement. 

  

	 	(h)	 Blanket Insurance; Master Program. Borrower may provide Insurance coverage described in this Section 6.10 under a blanket insurance
policy or master program which provides one “per occurrence” (per peril) limit of coverage as a shared limit for two or more properties (“Blanket Insurance Policy”) provided that each of the following conditions is
satisfied: 

  

	 	(i)	 The Blanket Insurance Policy is acceptable to Lender in Lender’s Discretion. 

 

	 	(ii)	 The coverages under the Blanket Insurance Policy for the “All Risks” policy required under Section 6.10(a)(i) will be at least to the
greater of: 

  

	 	(A)	 The largest individual Total Insurable Value of any property covered by the Blanket Insurance Policy. 

 

	 	(B)	 10% of the aggregate Total Insurable Value of all properties covered by the Blanket Insurance Policy. 

  

			
		  	Page 28

	 	(iii)	 The coverages under the Blanket Insurance Policy for Windstorm Coverage will be at least equal to: 

 

	 	(A)	 40% of the aggregate Total Insurable Value for all properties covered by the Blanket Policy if the Mortgaged Property is located (1) in
Florida, or (2) within 50 miles of the coast of any East Coast or Gulf Coast state. 

  

	 	(B)	 If the Mortgaged Property is not located (1) in Florida, or (2) within 50 miles of the coast of any East Coast or Gulf Coast state, the
greater of: 

  

	 	(x)	 The largest individual Total Insurable Value of any property covered by the Blanket Insurance Policy. 

 

	 	(y)	 10% of the aggregate Total Insurable Value of all properties covered by the Blanket Insurance Policy. 

 

	 	(iv)	 The coverages under the Blanket Insurance Policy for flood Insurance will be at least equal to the greater of: 

 

	 	(A)	 The sum of the maximum flood Insurance available under the NFIP for each building covered by the Blanket Insurance Policy located in a SFHA.

  

	 	(B)	 The largest individual Total Insurable Value of any property covered by the Blanket Insurance Policy that is required to be covered by flood
Insurance. 

  

	 	(C)	 40% of the largest aggregate Total Insurable Value within any Metropolitan Statistical Area that contains properties for which flood Insurance is
required. 

  

	 	(v)	 For all other coverages provided under the Blanket Insurance Policy, the per occurrence limits for the applicable coverage will be at least equal to
the coverages required under this Section 6.10 for the property having the largest individual Total Insurable Value of any property covered by the Blanket Insurance Policy. 

 

	 	(vi)	 Borrower will provide evidence acceptable to Lender in Lender’s Discretion that the per occurrence limit of the Insurance coverages provided by
the Blanket Insurance Policy will be no less than the Replacement Cost of the property with the largest replacement cost exposure covered by the Blanket Insurance Policy unless a higher amount is required by Lender in Lender’s Discretion.

  

	 	(vii)	 The maximum per occurrence deductible for the Blanket Insurance Policy providing property damage coverage and/or Windstorm Coverage is 1% of

  

			
		  	Page 29

	 	 
the Replacement Cost of the covered properties (to a maximum of $250,000). However, if the Blanket Insurance Policy provides Windstorm Coverage and the Mortgaged Property is located (A) in
Florida, or (B) within 50 miles of the coast of any East Coast or Gulf Coast state, then the maximum per occurrence deductible for Windstorm Coverage will not exceed 5% of the aggregate Replacement Cost of the covered properties. The waiting
period for business income/rental value Insurance coverage provided by the Blanket Insurance Policy will not exceed 7 days. 

  

	 	(viii)	 The minimum umbrella or excess liability coverage required if the Blanket Insurance Policy provides commercial general liability Insurance is as
follows: 

  

					
	 Number of

properties covered
 by the policy
  
	  	 Number
of
 stories (based
 on the covered
 property with

the greatest

number of

stories)
  
	  	
Minimum umbrella or
 excess liability
  

	2 to 3	  	 3
or fewer
 4 – 10
 11 – 20
 greater than 20
	  	 $3,000,000
 $5,000,000

$10,000,000

$15,000,000

	4 to 10	  	 3
or fewer
 4 – 10
 11 – 20
 greater than 20
	  	 $5,000,000
 $10,000,000

$15,000,000

$20,000,000

	11 to 20	  	 3
or fewer
 4 – 10
 11 – 20
 greater than 20
	  	 $10,000,000
 $15,000,000

$20,000,000

$25,000,000

	Greater than 20	  	 3
or fewer
 4 – 10
 11 – 20
 greater than 20
	  	 $15,000,000
 $20,000,000

$25,000,000

$50,000,000

  

	 	(i)	 Obligations Upon Casualty; Proof of Loss. 

  

	 	(i)	 In the event of loss, Borrower will give immediate written notice to the Insurance carrier and to Lender. 

 

	 	(ii)	 Borrower authorizes and appoints Lender as attorney in fact for Borrower to make proof of loss, to adjust and compromise any claims under policies
of Hazard Insurance, to appear in and prosecute any action arising from 

  

			
		  	Page 30

	 	 
such Hazard Insurance policies, to collect and receive the proceeds of Hazard Insurance, to hold the proceeds of Hazard Insurance, and to deduct from such proceeds Lender’s expenses incurred
in the collection of such proceeds. This power of attorney is coupled with an interest and therefore is irrevocable. However, nothing contained in this Section 6.10 will require Lender to incur any expense or take any action. Lender may, at
Lender’s option, take one of the following actions: 

  

	 	(A)	 Require a “repair or replacement” settlement, in which case the proceeds will be used to reimburse Borrower for the cost of restoring and
repairing the Mortgaged Property to the equivalent of its original condition or to a condition approved by Lender (“Restoration”). If Lender determines to require a repair or replacement settlement and to apply Insurance proceeds to
Restoration, Lender will apply the proceeds in accordance with Lender’s then-current policies relating to the Restoration of casualty damage on similar multifamily properties. 

 

	 	(B)	 Require an “actual cash value” settlement in which case the proceeds may be applied to the payment of the Indebtedness, whether or not
then due. 

  

	 	(iii)	 Subject to Section 6.10(j), Borrower may take the following actions: 

 

	 	(A)	 If a casualty results in damage to the Mortgaged Property for which the cost of Repairs will be less than the Borrower Proof of Loss Threshold,
Borrower will have the sole right to make proof of loss, adjust and compromise the claim and collect and receive any proceeds directly without the approval or prior consent of Lender so long as the Insurance proceeds are used solely for the
Restoration of the Mortgaged Property. 

  

	 	(B)	 If a casualty results in damage to the Mortgaged Property for which the cost of Repairs will be more than the Borrower Proof of Loss Threshold, but
less than the Borrower Proof of Loss Maximum, Borrower is authorized to make proof of loss and adjust and compromise the claim without the prior consent of Lender, and Lender will hold the applicable Insurance proceeds to be used to reimburse
Borrower for the cost of Restoration of the Mortgaged Property and will not apply such proceeds to the payment of the Indebtedness. 

  

	 	(j)	 Right to Apply Insurance Proceeds to Indebtedness. Lender will have the right to apply Insurance proceeds to the payment of the Indebtedness
if Lender determines, in Lender’s Discretion, that any of the following conditions are met: 

  

			
		  	Page 31

	 	(i)	 An Event of Default (or any event, which, with the giving of Notice or the passage of time, or both, would constitute an Event of Default) has
occurred and is continuing. 

  

	 	(ii)	 There will not be sufficient funds from Insurance proceeds, anticipated contributions of Borrower of its own funds or other sources acceptable to
Lender to complete the Restoration. 

  

	 	(iii)	 The rental income from the Mortgaged Property after completion of the Restoration will not be sufficient to meet all operating costs and other
expenses, deposits to Reserve Funds and Loan repayment obligations relating to the Mortgaged Property. 

  

	 	(iv)	 The Restoration will not be completed by the earlier of (A) at least one year before the Maturity Date (or 6 months before the Maturity
Date if re-leasing of the Mortgaged Property will be completed within such 6 month period) or (B) the expiration of the business interruption coverage. 

 

	 	(v)	 The Restoration will not be completed within one year after the date of the loss or casualty. 

 

	 	(vi)	 The casualty involved an actual or constructive loss of more than 30% of the fair market value of the Mortgaged Property, and rendered untenantable
more than 30% of the residential units of the Mortgaged Property. 

  

	 	(vii)	 After completion of the Restoration the fair market value of the Mortgaged Property is expected to be less than the fair market value of the
Mortgaged Property immediately prior to such casualty (assuming the affected portion of the Mortgaged Property is relet within a reasonable period after the date of such casualty). 

 

	 	(viii)	 Leases covering less than 35% of the residential units of the Mortgaged Property will remain in full force and effect during and after the
completion of Restoration. 

  

	 	(k)	 Succession to Insurance Policies. If the Mortgaged Property is sold at a foreclosure sale or Lender acquires title to the Mortgaged Property,
Lender will automatically succeed to all rights of Borrower in and to any Insurance policies and unearned Insurance premiums and in and to the proceeds resulting from any damage to the Mortgaged Property prior to such sale or acquisition.

  

	 	(l)	 Payment of Installments After Application of Insurance Proceeds. Unless Lender otherwise agrees in writing, any application of any Insurance
proceeds to the Indebtedness will not extend or postpone the due date of any monthly installments referred to in the Note, Article IV of this Loan Agreement or change the amount of such installments. 

  

			
		  	Page 32

	 	(m)	 Assignment of Insurance Proceeds. Borrower agrees to execute such further evidence of assignment of any Insurance proceeds as Lender may
require. 

  

	6.11	 Condemnation. 

  

	 	(a)	 Rights Generally. Borrower will promptly notify Lender in writing of any action or proceeding or notice relating to any proposed or actual
condemnation or other taking, or conveyance in lieu thereof, of all or any part of the Mortgaged Property, whether direct or indirect (“Condemnation”). Borrower will appear in and prosecute or defend any action or proceeding
relating to any Condemnation unless otherwise directed by Lender in writing. Borrower authorizes and appoints Lender as attorney in fact for Borrower to commence, appear in and prosecute, in Lender’s or Borrower’s name, any action or
proceeding relating to any Condemnation and to settle or compromise any claim in connection with any Condemnation, after consultation with Borrower and consistent with commercially reasonable standards of a prudent lender. This power of attorney is
coupled with an interest and therefore is irrevocable. However, nothing contained in this Section 6.11(a) will require Lender to incur any expense or take any action. Borrower transfers and assigns to Lender all right, title and interest of
Borrower in and to any award or payment with respect to (i) any Condemnation, or any conveyance in lieu of Condemnation, and (ii) any damage to the Mortgaged Property caused by governmental action that does not result in a Condemnation.

  

	 	(b)	 Application of Award. Lender may hold such awards or proceeds and apply such awards or proceeds, after the deduction of Lender’s
expenses incurred in the collection of such amounts (including Attorneys’ Fees and Costs) at Lender’s option, to the Restoration or repair of the Mortgaged Property or to the payment of the Indebtedness, with the balance, if any, to
Borrower. Unless Lender otherwise agrees in writing, any application of any awards or proceeds to the Indebtedness will not extend or postpone the due date of any monthly installments referred to in the Note or Article IV of this Loan Agreement, or
change the amount of such installments. Borrower agrees to execute such further evidence of assignment of any Condemnation awards or proceeds as Lender may require. 

 

	 	(c)	 Borrower’s Right to Condemnation Proceeds. Notwithstanding any provision to the contrary in this Section 6.11, but subject to
Section 6.11(e), in the event of a partial Condemnation of the Mortgaged Property, as long as no Event of Default, or any event which, with the giving of Notice or the passage of time, or both, would constitute an Event of Default, has occurred
and is continuing, in the event of a partial Condemnation resulting in proceeds or awards in the amount of less than $100,000, Borrower will have the sole right to make proof of loss, adjust and compromise the claim and collect and receive any
proceeds directly without the approval or prior consent of Lender so long as the proceeds or awards are used solely for the Restoration of the Mortgaged Property. 

 

	 	(d)	 Right to Apply Condemnation Proceeds to Indebtedness. In the event of a partial Condemnation of the Mortgaged Property resulting in proceeds
or awards in the 

  

			
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amount of $100,000 or more and subject to Section 6.11(e), Lender will have the right to exercise its option to apply Condemnation proceeds to the payment of the Indebtedness only if Lender,
in Lender’s Discretion, determines that at least one of the following conditions is met: 

  

	 	(i)	 An Event of Default (or any event, which, with the giving of Notice or the passage of time, or both, would constitute an Event of Default) has
occurred and is continuing. 

  

	 	(ii)	 There will not be sufficient funds from Condemnation proceeds, anticipated contributions of Borrower of its own funds or other sources acceptable to
Lender to complete the Restoration. 

  

	 	(iii)	 The rental income from the Mortgaged Property after completion of the Restoration will not be sufficient to meet all operating costs and other
expenses, deposits to Reserve Funds and Loan repayment obligations relating to the Mortgaged Property. 

  

	 	(iv)	 The Restoration will not be completed at least one year before the Maturity Date (or 6 months before the Maturity Date if re-leasing of the
Mortgaged Property will be completed within such 6 month period). 

  

	 	(v)	 The Restoration will not be completed within one year after the date of the Condemnation. 

 

	 	(vi)	 The Condemnation involved an actual or constructive loss of more than 15% of the fair market value of the Mortgaged Property, and rendered
untenantable more than 25% of the residential units of the Mortgaged Property. 

  

	 	(vii)	 After Restoration the fair market value of the Mortgaged Property is expected to be less than the fair market value of the Mortgaged Property
immediately prior to the Condemnation (assuming the affected portion of the Mortgaged Property is relet within a reasonable period after the date of the Condemnation). 

 

	 	(viii)	 Leases covering less than 35% of residential units of the Mortgaged Property will remain in full force and effect during and after the completion of
Restoration. 

  

	 	(e)	 Right to Apply Condemnation Proceeds in Connection with a Partial Release. Notwithstanding anything to the contrary set forth in this Loan
Agreement, including this Section 6.11, for so long as the Loan or any portion thereof is included in a Securitization, if any portion of the Mortgaged Property is released from the Lien of the Loan in connection with a Condemnation and if the
ratio of (i) the unpaid principal balance of the Loan to (ii) the value of the Mortgaged Property (taking into account only the related land and buildings and not any personal property or going-concern value), as determined by Lender in
its sole 

  

			
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and absolute discretion based on a commercially reasonable valuation method permitted in connection with a Securitization, is greater than 125% immediately after such Condemnation and before any
Restoration or repair of the Mortgaged Property (but taking into account any planned Restoration or repair of the Mortgaged Property as if such planned Restoration or repair were completed) Lender will apply any net proceeds or awards from such
Condemnation, in full, to the payment of the principal of the Indebtedness whether or not then due and payable, unless Lender will have received an opinion of counsel that a different application of such net proceeds or awards will not cause such
Securitization to fail to meet applicable federal income tax qualification requirements or subject such Securitization to any tax. 

  

	 	(f)	 Succession to Condemnation Proceeds. If the Mortgaged Property is sold at a foreclosure sale or Lender acquires title to the Mortgaged
Property, Lender will automatically succeed to all rights of Borrower in and to any Condemnation proceeds and awards prior to such sale or acquisition. 

 

	6.12	 Environmental Hazards. 

  

	 	(a)	 Prohibited Activities and Conditions. Except for matters described in this Section 6.12, Borrower will not cause or permit Prohibited
Activities or Conditions. Borrower will comply with all Hazardous Materials Laws applicable to the Mortgaged Property. Without limiting the generality of the previous sentence, Borrower will (i) obtain and maintain all Environmental Permits
required by Hazardous Materials Laws and comply with all conditions of such Environmental Permits, (ii) cooperate with any inquiry by any Governmental Authority, and (iii) comply with any governmental or judicial order that arises from any
alleged Prohibited Activity or Condition. 

  

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

  

	 	(c)	 O&M Programs. As required by Lender, Borrower will also have established a written operations and maintenance program with respect to
certain Hazardous Materials. Each such operations and maintenance program and any additional or revised operations and maintenance programs established for the Mortgaged Property pursuant to this Section 6.12 must be approved by Lender and will
be referred to in this Loan Agreement as an “O&M Program.” Borrower will comply in a timely manner with, and cause all employees, agents, and contractors of Borrower and any other Persons present on the Mortgaged Property to
comply with each O&M Program. Borrower will pay all costs of performance of 

  

			
		  	Page 35

	 	 
Borrower’s obligations under any O&M Program, and Lender’s out of pocket costs incurred in connection with the monitoring and review of each O&M Program must be paid by Borrower
upon demand by Lender. Any such out-of-pocket costs of Lender that Borrower fails to pay promptly will become an additional part of the Indebtedness as provided in Section 9.02. 

 

	 	(d)	 Notice to Lender. Borrower will promptly give Notice to Lender upon the occurrence of any of the following events:

  

	 	(i)	 Borrower’s discovery of any Prohibited Activity or Condition. 

 

	 	(ii)	 Borrower’s receipt of or knowledge of any written complaint, order, notice of violation or other communication from any tenant, Property
Manager, Governmental Authority or other Person with regard to present or future alleged Prohibited Activities or Conditions, or any other environmental, health or safety matters affecting the Mortgaged Property. 

 

	 	(iii)	 Borrower’s breach of any of its obligations under this Section 6.12. 

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

	 	(e)	 Environmental Inspections, Tests and Audits. Borrower will pay promptly the costs of any environmental inspections, tests or audits, a
purpose of which is to identify the extent or cause of or potential for a Prohibited Activity or Condition (“Environmental Inspections”), required by Lender in connection with any foreclosure or deed in lieu of foreclosure, or as a
condition of Lender’s consent to any Transfer under Article VII, or required by Lender following a reasonable determination by Lender that Prohibited Activities or Conditions may exist. Any such costs incurred by Lender (including
Attorneys’ Fees and Costs and the costs of technical consultants whether incurred in connection with any judicial or administrative process or otherwise) that Borrower fails to pay promptly will become an additional part of the Indebtedness as
provided in Section 9.02. As long as (i) no Event of Default has occurred and is continuing, (ii) Borrower has actually paid for or reimbursed Lender for all costs of any such Environmental Inspections performed or required by Lender,
and (iii) Lender is not prohibited by law, contract or otherwise from doing so, Lender will make available to Borrower, without representation of any kind, copies of Environmental Inspections prepared by third parties and delivered to Lender.
Lender reserves the right, and Borrower expressly authorizes Lender, to make available to any party, including any prospective bidder at a foreclosure sale of the Mortgaged Property, the results of any Environmental Inspections made by or for Lender
with respect to the Mortgaged Property. Borrower consents to Lender notifying any party (either as part of a notice of sale or otherwise) of the results of any Environmental Inspections made by or for Lender. Borrower acknowledges that Lender cannot
control or otherwise ensure the truthfulness or accuracy of the results of any 

  

			
		  	Page 36

	 	 
Environmental Inspections and that the release of such results to prospective bidders at a foreclosure sale of the Mortgaged Property may have a material and adverse effect upon the amount that a
party may bid at such sale. Borrower agrees that Lender will have no liability whatsoever as a result of delivering the results of any Environmental Inspections made by or for Lender to any third party, and Borrower releases and forever discharges
Lender from any and all claims, damages or causes of action arising out of, connected with or incidental to the results of the delivery of any Environmental Inspections made by or for Lender. 

 

	 	(f)	 Remedial Work. If any investigation, site monitoring, containment, clean-up, Restoration or other remedial work (“Remedial
Work”) is necessary to comply with any Hazardous Materials Law or order of any Governmental Authority that has or acquires jurisdiction over the Mortgaged Property or the use, operation or improvement of the Mortgaged Property, or is
otherwise required by Lender as a consequence of any Prohibited Activity or Condition or to prevent the occurrence of a Prohibited Activity or Condition, Borrower will, by the earlier of (i) the applicable deadline required by Hazardous
Materials Law or (ii) 30 days after Notice from Lender demanding such action, begin performing the Remedial Work, and thereafter diligently prosecute it to completion, and must in any event complete the work by the time required by
applicable Hazardous Materials Law. If Borrower fails to begin on a timely basis or diligently prosecute any required Remedial Work, Lender may, at its option, cause the Remedial Work to be completed, in which case Borrower will reimburse Lender on
demand for the cost of doing so. Any reimbursement due from Borrower to Lender will become part of the Indebtedness as provided in Section 9.02. 

  

	6.13	 Single Purpose Entity Requirements. 

  

	 	(a)	 Single Purpose Entity Requirements. Until the Indebtedness is paid in full, each Borrower and any SPE Equity Owner will remain a
“Single Purpose Entity,” which means at all times since its formation and thereafter it will satisfy each of the following conditions: 

 

	 	(i)	 It will not engage in any business or activity, other than the ownership, operation and maintenance of the Mortgaged Property and activities
incidental thereto. 

  

	 	(ii)	 It will not acquire, own, hold, lease, operate, manage, maintain, develop or improve any assets other than the Mortgaged Property and such
Personalty as may be necessary for the operation of the Mortgaged Property and will conduct and operate its business as presently conducted and operated. 

 

	 	(iii)	 It will preserve its existence as an entity duly organized, validly existing and in good standing (if applicable) under the laws of the jurisdiction
of its formation or organization and will do all things necessary to observe organizational formalities. 

  

			
		  	Page 37

	 	(iv)	 It will not merge or consolidate with any other Person. 

 

	 	(v)	 It will not take any action to dissolve, wind-up, terminate or liquidate in whole or in part; to sell, transfer or otherwise dispose of all or
substantially all of its assets; to change its legal structure; transfer or permit the direct or indirect transfer of any partnership, membership or other equity interests, as applicable, other than Transfers permitted under this Loan Agreement;
issue additional partnership, membership or other equity interests, as applicable, or seek to accomplish any of the foregoing. 

  

	 	(vi)	 It will not, without the prior unanimous written consent of all of Borrower’s partners, members, or shareholders, as applicable, and, if
applicable, the prior unanimous written consent of 100% of the members of the board of directors or of the board of Managers of Borrower or the SPE Equity Owner, take any of the following actions: 

 

	 	(A)	 File any insolvency, or reorganization case or proceeding, to institute proceedings to have Borrower or any SPE Equity Owner be adjudicated bankrupt
or insolvent. 

  

	 	(B)	 Institute proceedings under any applicable insolvency law. 

 

	 	(C)	 Seek any relief under any law relating to relief from debts or the protection of debtors. 

 

	 	(D)	 Consent to the filing or institution of bankruptcy or insolvency proceedings against Borrower or any SPE Equity Owner. 

 

	 	(E)	 File a petition seeking, or consent to, reorganization or relief with respect to Borrower or any SPE Equity Owner under any applicable federal or
state law relating to bankruptcy or insolvency. 

  

	 	(F)	 Seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian, or any similar official for Borrower or a
substantial part of its property or for any SPE Equity Owner or a substantial part of its property. 

  

	 	(G)	 Make any assignment for the benefit of creditors of Borrower or any SPE Equity Owner. 

 

	 	(H)	 Admit in writing Borrower’s or any SPE Equity Owner’s inability to pay its debts generally as they become due.

  

	 	(I)	 Take action in furtherance of any of the foregoing. 

 

	 	(vii)	 It will not amend or restate its organizational documents if such change would cause the provisions set forth in those organizational documents not
to comply with the requirements set forth in this Section 6.13. 

  

			
		  	Page 38

	 	(viii)	 It will not own any subsidiary or make any investment in, any other Person. 

 

	 	(ix)	 It will not commingle its assets with the assets of any other Person and will hold all of its assets in its own name. 

 

	 	(x)	 It will not incur any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than, (A) the
Indebtedness (and any further indebtedness as described in Section 11.11 with regard to Supplemental Instruments), and (B) customary unsecured trade payables incurred in the ordinary course of owning and operating the Mortgaged Property
provided the same are not evidenced by a promissory note, do not exceed, in the aggregate, at any time a maximum amount of 2% of the original principal amount of the Indebtedness and are paid within 60 days of the date incurred.

  

	 	(xi)	 It will maintain its records, books of account, bank accounts, financial statements, accounting records and other entity documents separate and
apart from those of any other Person and will not list its assets as assets on the financial statement of any other Person; provided, however, that Borrower’s assets may be included in a consolidated financial statement of its Affiliate
provided that (A) appropriate notation will be made on such consolidated financial statements to indicate the separateness of Borrower from such Affiliate and to indicate that Borrower’s assets and credit are not available to satisfy the
debts and other obligations of such Affiliate or any other Person and (B) such assets will also be listed on Borrower’s own separate balance sheet. 

 

	 	(xii)	 Except for capital contributions or capital distributions permitted under the terms and conditions of its organizational documents, it will only
enter into any contract or agreement with any general partner, member, shareholder, principal or Affiliate of Borrower or any Guarantor, or any general partner, member, principal or Affiliate thereof, upon terms and conditions that are commercially
reasonable and substantially similar to those that would be available on an arm’s-length basis with third parties. 

  

	 	(xiii)	 It will not maintain its assets in such a manner that will be costly or difficult to segregate, ascertain or identify its individual assets from
those of any other Person. 

  

	 	(xiv)	 It will not assume or guaranty (excluding any guaranty that has been executed and delivered in connection with the Note) the debts or obligations of
any other Person, hold itself out to be responsible for the debts of another Person, pledge its assets to secure the obligations of any other Person or otherwise pledge its assets for the benefit of any other Person, or hold out its credit as being
available to satisfy the obligations of any other Person. 

  

			
		  	Page 39

	 	(xv)	 It will not make or permit to remain outstanding any loans or advances to any other Person except for those investments permitted under the Loan
Documents and will not buy or hold evidence of indebtedness issued by any other Person (other than cash or investment-grade securities). 

  

	 	(xvi)	 It will file its own tax returns separate from those of any other Person, except to the extent that Borrower is treated as a “disregarded
entity” for tax purposes and is not required to file tax returns under applicable law, and will pay any taxes required to be paid under applicable law. 

 

	 	(xvii)	 It will hold itself out to the public as a legal entity separate and distinct from any other Person and conduct its business solely in its own name,
will correct any known misunderstanding regarding its separate identity and will not identify itself or any of its Affiliates as a division or department of any other Person. 

 

	 	(xviii)	 It will maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its
contemplated business operations and will pay its debts and liabilities from its own assets as the same become due. 

  

	 	(xix)	 It will allocate fairly and reasonably shared expenses with Affiliates (including shared office space) and use separate stationery, invoices and
checks bearing its own name. 

  

	 	(xx)	 It will pay (or cause the Property Manager to pay on behalf of Borrower from Borrower’s funds) its own liabilities (including salaries of its
own employees) from its own funds. 

  

	 	(xxi)	 It will not acquire obligations or securities of its partners, members, shareholders, or Affiliates, as applicable. 

 

	 	(xxii)	 Except as contemplated or permitted by the property management agreement with respect to the Property Manager, it will not permit any Affiliate or
constituent party independent access to its bank accounts. 

  

	 	(xxiii)	 It will maintain a sufficient number of employees (if any) in light of its contemplated business operations and pay the salaries of its own
employees, if any, only from its own funds. 

  

	 	(xxiv)	 If such entity is a single member limited liability company, such entity will satisfy each of the following conditions:

  

	 	(A)	 Be formed and organized under Delaware law. 

  

	 	(B)	 Have either one springing member that is a corporation whose stock is 100% owned by the sole member of Borrower and that satisfies the requirements
for a corporate springing member set 

  

			
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forth below in this Section or two springing members who are natural persons. 

  

	 	(C)	 Otherwise comply with all Rating Agencies criteria for single member limited liability companies (including the delivery of Delaware single member
limited liability company opinions acceptable in all respects to Lender and to the Rating Agencies). If the springing member is a corporation, such springing member will at all times comply, and will cause Borrower or SPE Equity Owner (as
applicable) to comply, with each of the representations, warranties and covenants contained in Section 6.13 as if such representation, warranty or covenant were made directly by such corporation. If there is more than one springing member, only
one springing member will be the sole member of Borrower or SPE Equity Owner (as applicable) at any one time, and the second springing member will become the sole member only upon the first springing member ceasing to be a member.

  

	 	(D)	 At all times Borrower or SPE Equity Owner (as applicable) will have one and only one member. 

 

	 	(xxv)	 If such entity is a single member limited liability company that is board-managed, such entity will have a board of Managers separate from that of
Guarantor and any other Person and will cause its board of Managers to keep minutes of board meetings and actions and observe all other Delaware limited liability company required formalities. 

 

	 	(xxvi)	 If an SPE Equity Owner is required pursuant to this Loan Agreement, if Borrower is (A) a limited liability company with more than one member,
then Borrower has and will have at least one member that is an SPE Equity Owner that has satisfied and will satisfy the requirements of Section 6.13(b) and such member is its managing member, or (B) a limited partnership, then all of its
general partners are SPE Equity Owners that have satisfied and will satisfy the requirements set forth in Section 6.13(b). 

  

	 	(b)	 SPE Equity Owner Requirements. The SPE Equity Owner, if applicable, will at all times since its formation and thereafter comply in its own
right (subject to the modifications set forth below), and will cause Borrower to comply, with each of the requirements of a Single Purpose Entity. Upon the withdrawal or the disassociation of an SPE Equity Owner from Borrower, Borrower will
immediately appoint a new SPE Equity Owner, whose organizational documents are substantially similar to those of the withdrawn or disassociated SPE Equity Owner, and deliver a new nonconsolidation opinion to the Rating Agencies and Lender in form
and substance satisfactory to Lender and to the Rating Agencies (unless the opinion is waived by the Rating Agencies), with regard to 

  

			
		  	Page 41

	 	 
nonconsolidation by a bankruptcy court of the assets of each of Borrower and SPE Equity Owner with those of its Affiliates. 

 

	 	(i)	 With respect to Section 6.13(a)(i), the SPE Equity Owner will not engage in any business or activity other than being the sole managing member
or general partner, as the case may be, of Borrower and owning at least 0.5% equity interest in Borrower. 

  

	 	(ii)	 With respect to Section 6.13(a)(ii), the SPE Equity Owner has not and will not acquire or own any assets other than its equity interest in
Borrower and personal property related thereto. 

  

	 	(iii)	 With respect to Section 6.13(a)(viii), the SPE Equity Owner will not own any subsidiary or make any investment in any other Person, except for
Borrower. 

  

	 	(iv)	 With respect to Section 6.13(a)(x), the SPE Equity Owner has not and will not incur any debt, secured or unsecured, direct or contingent
(including guaranteeing any obligation), other than (A) customary unsecured payables incurred in the ordinary course of owning Borrower provided the same are not evidenced by a promissory note, do not exceed, in the aggregate, at any time a
maximum amount of $10,000 and are paid within 60 days of the date incurred and (B) in its capacity as general partner of Borrower (if applicable). 

 

	 	(v)	 With respect to Section 6.13(a)(xiv), the SPE Equity Owner will not assume or guaranty the debts or obligations of any other Person, hold
itself out to be responsible for the debts of another Person, pledge its assets to secure the obligations of any other Person or otherwise pledge its assets for the benefit of any other Person, or hold out its credit as being available to satisfy
the obligations of any other Person, except for in its capacity as general partner of Borrower (if applicable). 

  

	 	(c)	 Effect of Transfer on Special Purpose Entity Requirements. Notwithstanding anything to the contrary in this Loan Agreement, no Transfer will
be permitted under Article VII unless the provisions of this Section 6.13 are satisfied at all times. 

  

	6.14	Repairs and Capital Replacements. 

  

	 	(a)	 Completion of Repairs. Borrower will commence any Repairs as soon as practicable after the date of this Loan Agreement and will diligently
proceed with and complete such Repairs on or before the Completion Date. All Repairs and Capital Replacements will be completed in a good and workmanlike manner, with suitable materials, and in accordance with good building practices and all
applicable laws, ordinances, rules, regulations, building setback lines and restrictions applicable to the Mortgaged Property. Borrower agrees to cause the replacement of any material or work that is defective, unworkmanlike or that does

  

			
		  	Page 42

	 	 
not comply with the requirements of this Loan Agreement, as determined by Lender. 

  

	 	(b)	 Purchases. Without the prior written consent of Lender, no materials, machinery, equipment, fixtures or any other part of the Repairs or
Capital Replacements will be purchased or installed under conditional sale contracts or lease agreements, or any other arrangement wherein title to such Repairs or Capital Replacements is retained or subjected to a purchase money security interest,
or the right is reserved or accrues to anyone to remove or repossess any such Repairs or Capital Replacements, or to consider them as personal property. 

 

	 	(c)	 Lien Protection. Borrower will promptly pay or cause to be paid, when due, all costs, charges and expenses incurred in connection with the
construction and completion of the Repairs or Capital Replacements, and will keep the Mortgaged Property free and clear of any and all Liens other than the Lien of the Security Instrument and any other junior Lien to which Lender has consented.

  

	 	(d)	 Adverse Claims. Borrower will promptly advise Lender in writing of any litigation, Liens or claims affecting the Mortgaged Property and of
all complaints and charges made by any Governmental Authority that may delay or adversely affect the Repairs or Capital Replacements. 

  

	6.15	Residential Leases Affecting the Mortgaged Property. 

  

	 	(a)	 Borrower will, promptly upon Lender’s request, deliver to Lender an executed copy of each residential Lease then in effect. All Leases for
residential dwelling units will be on forms acceptable to Lender, will be for initial terms of at least 6 months and not more than 2 years, and will not include options to purchase. 

 

	 	(b)	 If Borrower is a cooperative housing corporation or association, notwithstanding anything to the contrary contained in this Loan Agreement, so long
as Borrower remains a cooperative housing corporation or association and is not in breach of any covenant of this Loan Agreement, Lender consents to each of the following: 

 

	 	(i)	 The execution of Leases for terms in excess of 2 years to a tenant shareholder of Borrower, so long as such Leases, including proprietary
Leases, are and will remain subordinate to the Lien of the Security Instrument. 

  

	 	(ii)	 The surrender or termination of such Leases where the surrendered or terminated Lease is immediately replaced or where Borrower makes its best
efforts to secure such immediate replacement by a newly-executed Lease of the same apartment to a tenant shareholder of Borrower. However, no consent is given by Lender to any execution, surrender, termination or assignment of a Lease under terms
that would waive or reduce the obligation of the resulting tenant shareholder under such Lease to pay cooperative assessments in full when due or the obligation of the former tenant shareholder to pay any unpaid portion of such assessments.

  

			
		  	Page 43

	6.16	 Litigation; Government Proceedings. Borrower will give prompt Notice to Lender of any litigation or governmental proceedings pending or, to
the best of Borrower’s knowledge, threatened in writing against Borrower which might have a Material Adverse Effect. 

  

	6.17	 Further Assurances and Estoppel Certificates; Lender’s Expenses. Within 10 days after a request from Lender, in Lender’s
Discretion, Borrower will take each of the following actions: 

  

	 	(a)	 Deliver to Lender a written statement, signed and acknowledged by Borrower, certifying to Lender or any Person designated by Lender, as of the date
of such statement, (i) that the Loan Documents are unmodified and in full force and effect (or, if there have been modifications, that the Loan Documents are in full force and effect as modified and setting forth such modifications),
(ii) the unpaid principal balance of the Note, (iii) the date to which interest under the Note has been paid, (iv) that Borrower is not in default in paying the Indebtedness or in performing or observing any of the covenants or
agreements contained in this Loan Agreement or any of the other Loan Documents (or, if Borrower is in default, describing such default in reasonable detail), (v) whether there are any then-existing setoffs or defenses known to Borrower against
the enforcement of any right or remedy of Lender under the Loan Documents, and (vi) any additional facts requested by Lender. 

  

	 	(b)	 Execute, acknowledge and/or deliver, at its sole cost and expense, all further acts, deeds, conveyances, assignments, estoppel certificates,
financing statements or amendments, transfers and assurances as Lender may require from time to time in order to better assure, grant and convey to Lender the rights intended to be granted, now or in the future, to Lender under this Loan Agreement
and the Loan Documents or in connection with Lender’s consent rights under Article VII. 

Borrower acknowledges and agrees that, in connection with each request by Borrower under this Loan Agreement or any Loan
Document, Borrower will pay all reasonable Attorneys’ Fees and Costs and expenses incurred by Lender and Loan Servicer, including any fees charged by the Rating Agencies, regardless of whether the matter is approved, denied or withdrawn. Any
amounts payable by Borrower under this Loan Agreement will be deemed a part of the Indebtedness, will be secured by the Security Instrument and will bear interest at the Default Rate if not fully paid within 10 days of written demand for
payment. 
  

	6.18	 Cap Collateral. Reserved. 

  

	6.19	 Ground Lease. Reserved. 

  

	6.20	 ERISA Requirements. 

  

	 	(a)	 Borrower will not engage in any transaction which would cause an obligation, or action taken or to be taken under this Loan Agreement (or the
exercise by Lender of any of its rights under the Note, this Loan Agreement or any of the other Loan 

  

			
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Documents) to be a non-exempt (under a statutory or administrative class exemption) prohibited transaction under ERISA. 

 

	 	(b)	 Borrower will deliver to Lender such certifications or other evidence from time to time throughout the term of this Loan Agreement, as requested by
Lender in Lender’s Discretion, that (i) Borrower is not an “employee benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the meaning of
Section 3(32) of ERISA, (ii) Borrower is not subject to state statutes regulating investments and fiduciary obligations with respect to governmental plans, and (iii) one or more of the following circumstances is true:

  

	 	(A)	 Equity interests in Borrower are publicly offered securities within the meaning of 29 C.F.R. Section 2510.3-101(b)(2), as amended from time to
time or any successor provision. 

  

	 	(B)	 Less than 25% of each outstanding class of equity interests in Borrower are held by “benefit plan investors” within the meaning of
Section 3(42) of ERISA, as amended from time to time or any successor provision. 

  

	 	(C)	 Borrower qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R.
Section 2510.3-101(c), as amended from time to time or any successor provision, or within the meaning of 29 C.F.R. Section 2510.3-101(e) as an investment company registered under the Investment Company Act of 1940.

  

	ARTICLE VII	 TRANSFERS OF THE MORTGAGED PROPERTY OR INTERESTS IN BORROWER. 

Upon the occurrence of a Transfer prohibited by or requiring Lender’s approval (if applicable) under this Article VII, Lender may,
in Lender’s Discretion, by Notice to Borrower and the proposed transferee(s), modify or render void, any or all of the negotiated modifications to the Loan Documents (and/or deferral of deposits to Reserve Funds) as a condition to Lender’s
consent to the proposed Transfer. 
  

	7.01	 Permitted Transfers. The occurrence of any of the following Transfers will not constitute an Event of Default under this Loan Agreement,
notwithstanding any provision of Section 7.02 to the contrary: 

  

	 	(a)	 A Transfer to which Lender has consented. 

  

	 	(b)	 A Transfer that is not a prohibited Transfer pursuant to Section 7.02. 

 

	 	(c)	 A Transfer that is conditionally permitted pursuant to Section 7.03 upon the satisfaction of all applicable conditions.

  

			
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	 	(d)	 The grant of a leasehold interest in an individual dwelling unit for a term of 2 years or less (or longer if approved by Lender in writing) not
containing an option to purchase. 

  

	 	(e)	 Entering into any New Non-Residential Lease, or modifying or terminating any Non-Residential Lease, in each case in compliance with
Section 6.04. 

  

	 	(f)	 A Transfer of obsolete or worn out Personalty or Fixtures that are contemporaneously replaced by items of equal or better function and quality,
which are free of Liens, encumbrances and security interests other than those created by the Loan Documents or consented to by Lender. 

  

	 	(g)	 The creation of a mechanic’s, materialman’s, or judgment Lien against the Mortgaged Property, which is released of record, bonded, or
otherwise remedied to Lender’s satisfaction within 60 days of the date of creation; provided, however, if Borrower is diligently prosecuting such release or other remedy and advises Lender that such release or remedy cannot be consummated
within such 60-day period, Borrower will have an additional period of time (not exceeding 120 days from the date of creation or such earlier time as may be required by applicable law in which the lienor must act to enforce the Lien) within which to
obtain such release of record or consummate such other remedy. 

  

	 	(h)	 If Borrower is a housing cooperative corporation or association, the Transfer of the shares in the housing cooperative or the assignment of the
occupancy agreements or Leases relating thereto to tenant shareholders of the housing cooperative or association. 

  

	 	(i)	 A Supplemental Instrument that complies with Section 11.11 or Defeasance that complies with Section 11.12. 

 

	 	(j)	 A Preapproved Intrafamily Transfer pursuant to Section 7.04, if applicable. 

 

	7.02	 Prohibited Transfers. The occurrence of any of the following Transfers will constitute an Event of Default under this Loan Agreement:

  

	 	(a)	 A Transfer of all or any part of the Mortgaged Property or any interest in the Mortgaged Property, including the grant, creation or existence of any
Lien on the Mortgaged Property, whether voluntary, involuntary or by operation of law, and whether or not such Lien has priority over the Lien of the Security Instrument, other than the Lien of the Security Instrument or, if this Loan Agreement is
entered into in connection with a Supplemental Loan, the Lien of the Senior Instrument, or any other Lien to which Lender has consented. 

  

	 	(b)	 A Transfer or series of Transfers of any legal or equitable interest of any Guarantor which owns a direct or indirect interest in Borrower that
result(s) in such Guarantor no longer owning any direct or indirect interest in Borrower. 

  

			
		  	Page 46

	 	(c)	 A Transfer or series of Transfers of any legal or equitable interest since the Closing Date that result(s) in a change of more than 50% of the
ownership interests (or beneficial interests, if the applicable entity is a trust) in Borrower or any Designated Entity for Transfers. 

  

	 	(d)	 A Transfer of any general partnership interest in a partnership, or any manager interest (whether a member manager or nonmember manager) in a
limited liability company, or a change in the trustee of a trust other than as permitted in Section 7.04, if such partnership, limited liability company, or trust, as applicable, is the Borrower or a Designated Entity for Transfers.

  

	 	(e)	 If Borrower or any Designated Entity for Transfers is a corporation whose outstanding voting stock is held by 100 or more shareholders, other than a
real estate investment trust, one or more Transfers by a single transferor within a 12-month period affecting an aggregate of 10% or more of that stock. 

 

	 	(f)	 The grant, creation or existence of any Lien, whether voluntary, involuntary or by operation of law, and whether or not such Lien has priority over
the Lien of the Security Instrument, on any ownership interest in Borrower or any Designated Entity for Transfers, if the foreclosure of such Lien would result in a Transfer prohibited under Sections 7.02(b), (c), (d), or (e).

  

	7.03	 Conditionally Permitted Transfers. The occurrence of any of the following Transfers will not constitute a prohibited Transfer under
Section 7.02, provided that Borrower has complied with all applicable specified conditions in this Section. 

  

	 	(a)	 Transfer by Devise, Descent or Operation of Law. Upon the death of a natural person, a Transfer which occurs by devise, descent, or by
operation of law to one or more Immediate Family Members of such natural person or to a trust or family conservatorship established for the benefit of such Immediate Family Members (each a “Beneficiary”), provided that each of the
following conditions is satisfied: 

  

	 	(i)	 The Property Manager (or a replacement Property Manager approved by Lender), if applicable, continues to be responsible for the management of the
Mortgaged Property, and such Transfer will not result in a change in the day-to-day operations of the Mortgaged Property. 

  

	 	(ii)	 Lender receives confirmation acceptable to Lender, in Lender’s Discretion, that Borrower continues to satisfy the requirements of
Section 6.13. 

  

	 	(iii)	 Each Guarantor executes such documents and agreements as Lender requires in Lender’s Discretion to evidence and effect the ratification of each
Guaranty, or in the event of the death of any Guarantor, Borrower causes one of the following to occur: 

  

	 	(A)	 One or more Persons acceptable to Lender, in Lender’s Discretion, execute(s) and deliver(s) to Lender a guaranty in a form acceptable

  

			
		  	Page 47

	 	 
to Lender and in substantially the same form as the Guaranty executed on the Closing Date, without any cost or expense to Lender. 

 

	 	(B)	 The estate of the deceased Guarantor immediately ratifies the Guaranty in writing, and within 6 months after the date of the death of the deceased
Guarantor one or more Persons, acceptable to Lender in Lender’s Discretion, execute(s) and deliver(s) to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed on the Closing Date, without
any cost or expense to Lender. 

  

	 	(iv)	 Borrower gives Lender Notice of such Transfer together with copies of all documents effecting such Transfer not more than 30 calendar days
after the date of such Transfer, and contemporaneously with the Notice, takes each of the following additional actions: 

  

	 	(A)	 Borrower reaffirms the representations and warranties under Article V. 

 

	 	(B)	 Borrower satisfies Lender, in Lender’s Discretion, that the Beneficiary’s organization, credit and experience in the management of similar
properties are appropriate to the overall structure and documentation of the existing financing. 

  

	 	(v)	 Borrower or Beneficiary causes to be delivered to Lender such legal opinions as Lender deems necessary, in Lender’s Discretion, including an
opinion that the Beneficiary and any SPE Equity Owner of Beneficiary is in compliance with Section 6.13 (if applicable), a nonconsolidation opinion (if a nonconsolidation opinion was delivered on the Closing Date and if required by Lender), an
opinion that the ratification of the Loan Documents and Guaranty (if applicable) have been duly authorized, executed, and delivered and that the ratification documents and Guaranty (if applicable) are enforceable as the obligations of Borrower,
Beneficiary or Guarantor, as applicable. 

  

	 	(vi)	 Borrower (A) pays the Transfer Review Fee to Lender, and (B) pays or reimburses Lender, upon demand, for all costs and expenses including
all Attorneys’ Fees and Costs, incurred by Lender in connection with such Transfer; provided, however, that Lender will not be entitled to collect a Transfer Fee. 

 

	 	(b)	 Easement, Restrictive Covenant or Other Encumbrance. The grant of an easement, restrictive covenant or other encumbrance, provided that each
of the following conditions is satisfied: 

  

	 	(i)	 Borrower provides Lender with at least 30 days prior Notice of the proposed grant and pays the Transfer Review Fee to Lender.

  

			
		  	Page 48

	 	(ii)	 Prior to the grant, Lender determines, in Lender’s Discretion, that the easement, restrictive covenant or other encumbrance will not materially
affect the operation or value of the Mortgaged Property or Lender’s interest in the Mortgaged Property. 

  

	 	(iii)	 Borrower pays or reimburses Lender, upon demand, for all costs and expenses, including all Attorneys’ Fees and Costs, incurred by Lender in
connection with reviewing Borrower’s request for Lender’s review of such grant of easement, restrictive covenant or other encumbrance; provided, however, that Lender will not be entitled to collect a Transfer Fee.

  

	 	(iv)	 If the Note is held by a REMIC trust, if required by Lender, Borrower provides an opinion of counsel for Borrower, in form and substance
satisfactory to Lender in its sole and absolute discretion, confirming each of the following: 

  

	 	(A)	 The grant of such easement has been effected in accordance with the requirements of Treasury Regulation Section 1.860G-2(a)(8) (as such
regulation may be modified, amended or replaced from time to time). 

  

	 	(B)	 The qualification and status of the REMIC trust as a REMIC will not be adversely affected or impaired as a result of such grant.

  

	 	(C)	 The REMIC trust will not incur a tax under Section 860G(d) of the Tax Code as a result of such grant. 

 

	 	(c)	 Publicly-Held Fund or Real Estate Investment Trust. If a Designated Entity for Transfers is a publicly-held fund or real estate investment
trust, either of the following: 

  

	 	(i)	 The public issuance of common stock, convertible debt, equity or other similar securities (“Public Fund/REIT Securities”) and the
subsequent Transfer of such Public Fund/REIT Securities. 

  

	 	(ii)	 The acquisition by a single Public Fund/REIT Securities holder of an ownership percentage of 10% or more in the Designated Entity for Transfers, if
Borrower provides notice of that acquisition to Lender within 30 days following the acquisition. 

  

	 	(d)	 Reserved. 

  

	7.04	 Preapproved Intrafamily Transfers. Not applicable. 

 

	7.05	 Lender’s Consent to Prohibited Transfers. 

 

	 	(a)	 Conditions for Lender’s Consent. With respect to a Transfer that would otherwise constitute an Event of Default under this Article VII,
Lender will consent, without 

  

			
		  	Page 49

	 	 
any adjustment to the rate at which the Indebtedness bears interest or to any other economic terms of the Indebtedness set forth in the Note, provided that, prior to such Transfer, each of the
following requirements is satisfied: 

  

	 	(i)	 Borrower has submitted to Lender all information required by Lender to make the determination required by this Section along with the Transfer
Review Fee. 

  

	 	(ii)	 No Event of Default has occurred and is continuing and no event or condition has occurred and is continuing that, with the giving of Notice or the
passage of time, or both, would become an Event of Default unless such Transfer would cure the Event of Default. 

  

	 	(iii)	 Lender in Lender’s Discretion has determined that the transferee meets Lender’s eligibility, credit, management and other standards
(including any standards with respect to previous relationships between Lender and the transferee). 

  

	 	(iv)	 Lender in Lender’s Discretion has determined that the transferee’s organization, credit and experience in the management of similar
properties to be appropriate to the overall structure and documentation of the Loan. 

  

	 	(v)	 Lender in Lender’s Discretion has determined that the Mortgaged Property will be managed by a Property Manager meeting the requirements of
Section 6.09(d). 

  

	 	(vi)	 Lender in Lender’s Discretion has determined that the Mortgaged Property, at the time of the proposed Transfer, meets all of Lender’s
standards as to its physical condition, occupancy, net operating income and the accumulation of reserves. 

  

	 	(vii)	 Lender in Lender’s Discretion has determined that the transferee and any SPE Equity Owner of such transferee meet the requirements of
Section 6.13. 

  

	 	(viii)	 If a Supplemental Instrument is outstanding, Borrower has obtained the consent of the Supplemental Lender. 

 

	 	(ix)	 In the case of a Transfer of all or any part of the Mortgaged Property, each of the following conditions is satisfied: 

 

	 	(A)	 The transferee executes Lender’s then-standard assumption agreement that, among other things, requires the transferee to perform all
obligations of Borrower set forth in the Note, the Security Instrument, this Loan Agreement and any other Loan Document, and may require that the transferee comply with any 

  

			
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provisions of this Loan Agreement or any other Loan Document which previously may have been waived or modified by Lender. 

 

	 	(B)	 If Lender requires, the transferee causes one or more Persons acceptable to Lender, in Lender’s Discretion, to execute and deliver to Lender a
Guaranty in a form acceptable to Lender. 

  

	 	(C)	 The transferee executes such additional documentation (including filing financing statements, as applicable) as Lender may require.

  

	 	(x)	 In the case of a Transfer of any interest in Borrower or a Designated Entity for Transfers, if a Guarantor requests that Lender release the
Guarantor from its obligations under a Guaranty executed and delivered in connection with the Note, this Loan Agreement or any of the other Loan Documents, then Borrower causes one or more Persons acceptable to Lender, in Lender’s Discretion,
to execute and deliver to Lender a Guaranty in a form acceptable to Lender. 

  

	 	(xi)	 Lender has received such legal opinions as Lender deems necessary, including an opinion that the transferee and any SPE Equity Owner is in
compliance with Section 6.13, a nonconsolidation opinion (if a nonconsolidation opinion was delivered on the Closing Date and if required by Lender), an opinion that the assignment and assumption of the Loan Documents has been duly authorized,
executed, and delivered and that the assignment documents and the Loan Documents are enforceable as the obligations of Borrower, transferee and Guarantor, as applicable. 

 

	 	(xii)	 Lender collects all costs, including the cost of all title searches, title insurance and recording costs, and all Attorneys’ Fees and Costs
incurred in reviewing the Transfer request and any fees charged by the Rating Agencies. 

  

	 	(xiii)	 At the time of the Transfer, Borrower pays the Transfer Fee to Lender. 

 

	 	(b)	 Continuing Liability of Borrower. If Borrower requests a release of its liability under the Loan Documents in connection with a Transfer of
all of the Borrower’s interest in the Mortgaged Property, and Lender approves the Transfer pursuant to Section 7.05(a), then one of the following will apply: 

 

	 	(i)	 If Borrower delivers to Lender a current Site Assessment which (A) is dated within 90 days prior to the date of the proposed Transfer, and
(B) evidences no presence of Hazardous Materials on the Mortgaged Property and no other Prohibited Activities or Conditions with respect to the Mortgaged Property (“Clean Site Assessment”), then Lender will release Borrower
from any liability under Section 6.12 or Section 10.02(b) with respect to any indemnified matters created or arising solely from any Prohibited Activities or Conditions first existing after the date of the

  

			
		  	Page 51

	 	 
Transfer, provided such loss, liability, damage, claim, cost or expense does not directly or indirectly arise from or relate to any Prohibited Activities or Conditions existing prior to the date
of the Transfer. 

  

	 	(ii)	 If Borrower does not deliver a Clean Site Assessment as described in Section 7.05(b)(i), then Lender will release Borrower from all of
Borrower’s obligations under the Loan Documents except for liability under Section 6.12 or Section 10.02(b). 

  

	 	(c)	 Continuing Liability of Guarantor. If Guarantor requests a release of its liability under the Guaranty in connection with a Transfer which
Lender has approved pursuant to Section 7.05(a), and Borrower has provided a replacement Guarantor acceptable to Lender under the terms of Section 7.05(a)(ix)(B), then one of the following will apply: 

 

	 	(i)	 If Borrower delivers to Lender a Clean Site Assessment, then Lender will release Guarantor from Guarantor’s obligation to guaranty
Borrower’s liability under Section 6.12 or Section 10.02(b) with respect to any indemnified matters created or arising solely from any Prohibited Activities or Conditions first existing after the date of the Transfer, provided such
loss, liability, damage, claim, cost or expense does not directly or indirectly arise from or relate to any Prohibited Activities or Conditions existing prior to the date of the Transfer. 

 

	 	(ii)	 If Borrower does not deliver a Clean Site Assessment as described in Section 7.05(b)(i), then Lender will release Guarantor from all of
Guarantor’s obligations except for Guarantor’s obligation to guaranty Borrower’s liability under Section 6.12 or Section 10.02(b). 

 

	ARTICLE VIII	 SUBROGATION. 

 If, and to the extent that, the proceeds of the Loan, or subsequent advances under Section 9.02, are used to pay, satisfy or discharge a Prior Lien, such Loan proceeds or advances will be deemed to
have been advanced by Lender at Borrower’s request, and Lender will automatically, and without further action on its part, be subrogated to the rights, including Lien priority, of the owner or holder of the obligation secured by the Prior Lien,
whether or not the Prior Lien is released. 
  

	ARTICLE IX	 EVENTS OF DEFAULT AND REMEDIES. 

  

	9.01	 Events of Default. The occurrence of any one or more of the following will constitute an Event of Default under this Loan Agreement:

  

	 	(a)	 Borrower fails to pay or deposit when due any amount required by the Note, this Loan Agreement or any other Loan Document.

  

	 	(b)	 Borrower fails to maintain the Insurance coverage required by Section 6.10. 

  

			
		  	Page 52

	 	(c)	 Borrower or any SPE Equity Owner fails to comply with the provisions of Section 6.13 or if any of the assumptions contained in any
nonconsolidation opinions delivered to Lender at any time is or becomes untrue in any material respect. 

  

	 	(d)	 Borrower or any SPE Equity Owner, any of its officers, directors, trustees, general partners or managers or any Guarantor commits fraud or a
material misrepresentation or material omission in connection with (i) the application for or creation of the Indebtedness, (ii) any financial statement, Rent Schedule, or other report or information provided to Lender during the term of
the Indebtedness, or (iii) any request for Lender’s consent to any proposed action, including a request for disbursement of funds under this Loan Agreement. 

 

	 	(e)	 Borrower fails to comply with the Condemnation provisions of Section 6.11. 

 

	 	(f)	 A Transfer occurs that violates the provisions of Article VII, whether or not any actual impairment of Lender’s security results from such
Transfer. 

  

	 	(g)	 A forfeiture action or proceeding, whether civil or criminal, is commenced which could result in a forfeiture of the Mortgaged Property or otherwise
materially impair the Lien created by the Security Instrument or Lender’s interest in the Mortgaged Property. 

  

	 	(h)	 Borrower fails to perform any of its obligations under this Loan Agreement (other than those specified in Sections 9.01(a) through (g)), as and when
required, which failure continues for a period of 30 days after Notice of such failure by Lender to Borrower. However, if Borrower’s failure to perform its obligations as described in this Section 9.01(h) is of the nature that it
cannot be cured within the 30 day cure period after such Notice from Lender but reasonably could be cured within 90 days, then Borrower will have additional time as determined by Lender in Lender’s Discretion, not to exceed an
additional 60 days, in which to cure such default, provided that Borrower has diligently commenced to cure such default during the initial 30 day cure period and diligently pursues the cure of such default. However, no such Notice or cure
periods will apply in the case of any such failure which could, in Lender’s judgment, absent immediate exercise by Lender of a right or remedy under this Loan Agreement, result in harm to Lender, danger to tenants or third parties, or
impairment of the Note, the Security Instrument or this Loan Agreement or any other security given under any other Loan Document. 

  

	 	(i)	 Borrower fails to perform any of its obligations as and when required under any Loan Document other than this Loan Agreement which failure continues
beyond the applicable cure period, if any, specified in that Loan Document. 

  

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

  

			
		  	Page 53

	 	(k)	 Any of the following occurs: 

  

	 	(i)	 Borrower or any SPE Equity Owner commences any case, Proceeding or other action under any existing or future law of any jurisdiction, domestic or
foreign, relating to bankruptcy, insolvency, reorganization, conservatorship or relief of debtors (A) seeking to have an order for relief entered with respect to it, or seeking to adjudicate it bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debt, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or
any substantial part of its assets. 

  

	 	(ii)	 Any party other than Lender commences any case, Proceeding, or other action of a nature referred to in Section 9.01(k)(i) against Borrower or
any SPE Equity Owner which (A) results in the entry of an order for relief or any such adjudication or appointment, or (B) has not been dismissed, discharged or bonded for a period of 90 days. 

 

	 	(iii)	 Any case, Proceeding or other action is commenced against Borrower or any SPE Equity Owner seeking issuance of a warrant of attachment, execution,
distraint or similar process against all or any substantial part of its assets which results in the entry of any order by a court of competent jurisdiction for any such relief which is not vacated, discharged, or stayed or bonded pending appeal
within 90 days from the entry thereof. 

  

	 	(iv)	 Borrower or any SPE Equity Owner takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts
set forth in Section 9.01(k)(i), (ii) or (iii). 

  

	 	(l)	 Borrower or any SPE Equity Owner has made any representation or warranty in Article V or any other Section of this Loan Agreement that is false
or misleading in any material respect. 

  

	 	(m)	 If the Loan is secured by an interest under a Ground Lease, Borrower fails to comply with the provisions of Section 6.19.

  

	 	(n)	 If the Loan is a Supplemental Loan, any Event of Default occurs under (i) the Senior Note, the Senior Instrument or any other Senior Loan
Document, or (ii) any loan document related to another loan in connection with the Mortgaged Property, regardless of whether Borrower has obtained Supplemental Lender’s approval of the placement of such Lien on the Mortgaged Property. In
addition, if the Loan is a Supplemental Loan, as Borrower under both the Supplemental Instrument and the Senior Instrument, Borrower acknowledges and agrees that if there is an Event of Default under the Supplemental Note, the Supplemental
Instrument or any other Supplemental Loan Document, such Event of Default will be an Event of Default under the terms of the Senior Instrument and will entitle 

  

			
		  	Page 54

	 	 
Senior Lender to invoke any and all remedies permitted to Senior Lender by applicable law, the Senior Note, the Senior Instrument or any of the other Senior Loan Documents.

  

	 	(o)	 If the Mortgaged Property is subject to any covenants, conditions and/or restrictions, land use restriction agreements or similar agreements,
Borrower fails to perform any of its obligations under any such agreement as and when required, and such failure continues beyond any applicable cure period. 

 

	 	(p)	 A Guarantor files for bankruptcy protection under the Bankruptcy Code or a Guarantor voluntarily becomes subject to any reorganization,
receivership, insolvency proceeding or other similar proceeding pursuant to any other federal or state law affecting debtor and creditor rights, or any creditor (other than Lender) of a Guarantor commences any involuntary case against a Guarantor
pursuant to the Bankruptcy Code or other federal or state law affecting debtor and creditor rights, unless each of the following conditions is satisfied: 

 

	 	(i)	 Borrower or Guarantor provides Notice of such action to Lender within 30 days after the filing of such action. 

 

	 	(ii)	 Either (A) the case is dismissed or discharged within 90 days after filing, or (B) within 90 days following the date of such
filing or commencement, the affected Guarantor is replaced with one or more other Persons acceptable to Lender, in Lender’s Discretion, each of whom executes and delivers to Lender a replacement Guaranty in form and content acceptable to
Lender, together with such legal opinions as Lender deems necessary; provided, however, that if Lender determines, in Lender’s Discretion, that any proposed replacement Guarantor is not acceptable, then the action will constitute a prohibited
Transfer governed by Section 7.02. 

  

	 	(iii)	 If Lender approves a replacement Guarantor, Borrower pays the Transfer Review Fee to Lender. 

 

	 	(q)	 With respect to a Guarantor, either of the following occurs: 

 

	 	(i)	 The death of any Guarantor who is a natural person, unless within 30 days following the Guarantor’s death, Borrower causes one of the
following to occur: 

  

	 	(A)	 One or more Persons acceptable to Lender, in Lender’s Discretion, execute(s) and deliver(s) to Lender a guaranty in a form acceptable to Lender
and in substantially the same form as the Guaranty executed on the Closing Date, without any cost or expense to Lender. 

  

	 	(B)	 The estate of the deceased Guarantor immediately ratifies the Guaranty in writing, and within 6 months after the date of the death of the deceased
Guarantor one or more Persons, acceptable 

  

			
		  	Page 55

	 	 
to Lender in Lender’s Discretion, execute(s) and deliver(s) to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed on the Closing
Date, without any cost or expense to Lender. 

  

	 	(ii)	 The dissolution of any Guarantor who is an entity, unless within 30 days following the dissolution of the Guarantor, Borrower causes one or
more Persons acceptable to Lender, in Lender’s Discretion, to execute and deliver to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed on the Closing Date, without any cost or expense
to Lender. 

  

	 	(r)	 If a Cap Agreement is required, Borrower fails to provide Lender with a Replacement Cap Agreement prior to the expiration of the then-existing Cap
Agreement. 

  

	9.02	Protection of Lender’s Security; Security Instrument Secures Future Advances. 

 

	 	(a)	 If Borrower fails to perform any of its obligations under this Loan Agreement or any other Loan Document, or if any action or proceeding is
commenced which purports to affect the Mortgaged Property, Lender’s security or Lender’s rights under this Loan Agreement, including eminent domain, insolvency, code enforcement, civil or criminal forfeiture, enforcement of Hazardous
Materials Laws, fraudulent conveyance or reorganizations or proceedings involving a bankrupt or decedent, then Lender, in Lender’s Discretion, may make such appearances, file such documents, disburse such sums and take such actions as Lender
reasonably deems necessary to perform such obligations of Borrower and to protect Lender’s interest, including (i) payment of Attorneys’ Fees and Costs, (ii) payment of fees and out-of-pocket expenses of accountants, inspectors
and consultants, (iii) entry upon the Mortgaged Property to make Repairs or secure the Mortgaged Property, (iv) procurement of the Insurance required by Section 6.10, (v) payment of amounts which Borrower has failed to pay under
Section 6.08, (vi) performance of Borrower’s obligations under Section 6.09, and (vii) advances made by Lender to pay, satisfy or discharge any obligation of Borrower for the payment of money that is secured by a Prior Lien.

  

	 	(b)	 Any amounts disbursed by Lender under this Section 9.02, or under any other provision of this Loan Agreement that treats such disbursement as
being made under this Section 9.02, will be secured by the Security Instrument, will be added to, and become part of, the principal component of the Indebtedness, will be immediately due and payable and will bear interest from the date of
disbursement until paid at the Default Rate. 

  

	 	(c)	 Nothing in this Section 9.02 will require Lender to incur any expense or take any action. 

  

			
		  	Page 56

	9.03	Remedies. 

  

	 	(a)	 Upon an Event of Default, Lender may exercise any or all of its rights and remedies provided under the Loan Documents and Borrower will pay all
costs associated therewith, including Attorneys’ Fees and Costs. 

  

	 	(b)	 Each right and remedy provided in this Loan Agreement is distinct from all other rights or remedies under this Loan Agreement or any other Loan
Document or afforded by applicable law or equity, and each will be cumulative and may be exercised concurrently, independently or successively, in any order. Lender’s exercise of any particular right or remedy will not in any way prevent Lender
from exercising any other right or remedy available to Lender. Lender may exercise any such remedies from time to time and as often as Lender chooses. 

 

	 	(c)	 Lender will have all remedies available to Lender under Revised Article 9 of the Uniform Commercial Code of the Property Jurisdiction, the Loan
Documents and under applicable law. 

  

	 	(d)	 Lender may also retain (i) all money in the Reserve Funds, including interest, and (ii) any Cap Payment, and in Lender’s sole and
absolute discretion, may apply such amounts, without restriction and without any specific order of priority, to the payment of any and all Indebtedness. 

 

	 	(e)	 If a claim or adjudication is made that Lender has acted unreasonably or unreasonably delayed acting in any case where, by law or under this Loan
Agreement or the other Loan Documents, Lender has an obligation to act reasonably or promptly, then Lender will not be liable for any monetary damages, and Borrower’s sole remedy will be limited to commencing an action seeking injunctive relief
or declaratory judgment. Any action or proceeding to determine whether Lender has acted reasonably will be determined by an action seeking declaratory judgment. 

 

	9.04	Forbearance. 

  

	 	(a)	 Lender may (but will not be obligated to) agree with Borrower, from time to time, and without giving Notice to, or obtaining the consent of, or
having any effect upon the obligations of, any Guarantor or other third party obligor, to take any of the following actions: 

  

	 	(i)	 Extend the time for payment of all or any part of the Indebtedness. 

 

	 	(ii)	 Reduce the payments due under this Loan Agreement, the Note or any other Loan Document. 

 

	 	(iii)	 Release anyone liable for the payment of any amounts under this Loan Agreement, the Note or any other Loan Document. 

 

	 	(iv)	 Accept a renewal of the Note. 

  

			
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	 	(v)	 Modify the terms and time of payment of the Indebtedness. 

 

	 	(vi)	 Join in any extension or subordination agreement. 

 

	 	(vii)	 Release any portion of the Mortgaged Property. 

  

	 	(viii)	 Take or release other or additional security. 

  

	 	(ix)	 Modify the rate of interest or period of amortization of the Note or change the amount of the monthly installments payable under the Note.

  

	 	(x)	 Otherwise modify this Loan Agreement, the Note or any other Loan Document. 

 

	 	(b)	 Any forbearance by Lender in exercising any right or remedy under the Note, this Loan Agreement or any other Loan Document or otherwise afforded by
applicable law, will not be a waiver of or preclude the exercise of any other right or remedy, or the subsequent exercise of any right or remedy. The acceptance by Lender of payment of all or any part of the Indebtedness after the due date of such
payment, or in an amount which is less than the required payment, will not be a waiver of Lender’s right to require prompt payment when due of all other payments on account of the Indebtedness or to exercise any remedies for any failure to make
prompt payment. Enforcement by Lender of any security for the Indebtedness will not constitute an election by Lender of remedies so as to preclude the exercise of any other right available to Lender. Lender’s receipt of any awards or proceeds
under Sections 6.10 and 6.11 will not operate to cure or waive any Event of Default. 

  

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

 

	ARTICLE X	RELEASE; INDEMNITY. 

  

	10.01	 Release. Borrower covenants and agrees that, in performing any of its duties under this Loan Agreement, none of Lender, Loan Servicer or any
of their respective agents or employees will be liable for any losses, claims, damages, liabilities and expenses that may be incurred by any of them as a result of such performance, except that no party will

  

			
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be released from liability for any losses, claims, damages, liabilities or expenses arising out of the willful misconduct or gross negligence of such party. 

 

	10.02	Indemnity. 

  

	 	(a)	 General Indemnity. Borrower agrees to indemnify, hold harmless and defend Lender, including any custodian, trustee and other fiduciaries who
hold or have held a full or partial interest in the Loan for the benefit of third parties, any prior owner or holder of the Note, the Loan Servicer, any prior Loan Servicer, the officers, directors, shareholders, partners, employees and trustees of
each of the foregoing, and the heirs, legal representatives, successors and assigns of each of the foregoing (collectively, “Indemnitees”) against any and all losses, claims, damages, liabilities and expenses including
Attorneys’ Fees and Costs, which may be imposed or incurred by any of them directly or indirectly arising out of, or in any way relating to, or as a result of (i) any failure of the Mortgaged Property to comply with the laws, regulations,
ordinance, code or decree of any Governmental Authority, including those pertaining to the Americans with Disabilities Act, zoning, occupancy and subdivision of real property, (ii) any obligation of Borrower under any Lease, and (iii) any
accident, injury or death to any natural person on the Mortgaged Property or any damage to personal property located on the Mortgaged Property, except that no such party will be indemnified from liability for any losses, claims, damages, liabilities
or expenses arising out of the willful misconduct or gross negligence of such party. 

  

	 	(b)	 Environmental Indemnity. Borrower agrees to indemnify, hold harmless and defend Indemnitees from and against all proceedings, claims,
damages, penalties and costs (whether initiated or sought by Governmental Authorities or private parties), including Attorneys’ Fees and Costs and remediation costs, whether incurred in connection with any judicial or administrative process or
otherwise, arising directly or indirectly from any of the following: 

  

	 	(i)	 Any breach of any representation or warranty of Borrower in Section 5.05. 

 

	 	(ii)	 Any failure by Borrower to perform any of its obligations under Section 6.12. 

 

	 	(iii)	 The existence or alleged existence of any Prohibited Activity or Condition. 

 

	 	(iv)	 The presence or alleged presence of Hazardous Materials on or under the Mortgaged Property or in any of the Improvements.

  

	 	(v)	 The actual or alleged violation of any Hazardous Materials Law. 

 

	 	(c)	 Indemnification Regarding ERISA Covenants. BORROWER WILL INDEMNIFY LENDER AND DEFEND AND HOLD LENDER HARMLESS FROM AND AGAINST ALL CIVIL
PENALTIES, EXCISE TAXES, OR OTHER LOSS, COST, DAMAGE AND EXPENSE (INCLUDING 

  

			
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REASONABLE ATTORNEYS’ FEES AND COSTS INCURRED IN THE INVESTIGATION, DEFENSE AND SETTLEMENT OF CLAIMS AND LOSSES INCURRED IN CORRECTING ANY PROHIBITED TRANSACTION OR IN THE SALE OF A
PROHIBITED LOAN, AND IN OBTAINING ANY INDIVIDUAL PROHIBITED TRANSACTION EXEMPTION UNDER ERISA THAT MAY BE REQUIRED, IN LENDER’S SOLE AND ABSOLUTE DISCRETION) THAT LENDER MAY INCUR, DIRECTLY OR INDIRECTLY, AS A RESULT OF DEFAULT UNDER
SECTION 6.20. THIS INDEMNITY WILL SURVIVE ANY TERMINATION, SATISFACTION OR FORECLOSURE OF THE SECURITY INSTRUMENT. 

  

	 	(d)	 Securitization Indemnification. 

  

	 	(i)	 Borrower agrees to indemnify, hold harmless and defend the Indemnified Parties from and against any and all proceedings, losses, claims, damages,
liabilities, penalties, costs and expenses (whether initiated or sought by Governmental Authorities or private parties), including Attorneys’ Fees and Costs, which may be incurred by any Indemnified Party (either directly or indirectly), which
arise out of, are in any way related to, or are as a result of a claim that the Borrower Information contains an untrue statement of any material fact or the Borrower Information omits to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they are made, not misleading (collectively, the “Securitization Indemnification”). 

 

	 	(ii)	 Borrower will not be liable under the Securitization Indemnification if the claim is based on Borrower Information which Lender has materially
misstated or materially misrepresented in the Disclosure Document. 

  

	 	(iii)	 For purposes of this Section 10.02(d): 

  

	 	(A)	 “Borrower Information” includes any information provided at any time to Lender or Loan Servicer by Borrower, any SPE
Equity Owner, any Guarantor, any Property Manager or any Affiliates of the foregoing with respect to any of the following: 

  

	 	(1)	 Any Person listed in Section 10.02(d)(iii)(A). 

 

	 	(2)	 The Loan. 

  

	 	(3)	 The Mortgaged Property. 

 Borrower Information includes (i) representations and warranties made in the Loan Documents, (ii) financial statements of Borrower, any SPE Equity Owner, any Designated Entity for Transfers or
any Guarantor, and (iii) operating statements and rent rolls with respect to the Mortgaged Property. 

  

			
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	 	(B)	 The term “Lender” includes its officers and directors. 

 

	 	(C)	 An “Issuer Person” includes all of the following: 

 

	 	(1)	 Any Affiliate of Lender that has filed the registration statement, if any, relating to the Securitization. 

 

	 	(2)	 Any Affiliate of Lender which is acting as issuer, depositor, sponsor and/or in a similar capacity with respect to the Securitization.

  

	 	(D)	 The “Issuer Group” includes all of the following: 

 

	 	(1)	 Each director and officer of any Issuer Person. 

  

	 	(2)	 Each entity that Controls any Issuer Person within the meaning of Section 15 of the Securities Act or Section 20 of the Securities
Exchange Act. 

  

	 	(E)	 The “Underwriter Group” includes all of the following: 

 

	 	(1)	 Each entity which is acting as an underwriter, manager, placement agent, initial purchaser or in a similar capacity with respect to the
Securitization. 

  

	 	(2)	 Each of its directors and officers. 

  

	 	(3)	 Each entity that Controls any such entity within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange
Act and is acting as an underwriter, manager, placement agent, initial purchaser or in a similar capacity with respect to the Securitization. 

  

	 	(4)	 The directors and officers of such entity described in Section 10.02(d)(iii)(E)(1). 

 

	 	(F)	 “Indemnified Party” or “Indemnified Parties” means one or more of Lender, Issuer Person, Issuer Group, and
Underwriter Group. 

  

	 	(e)	 Selection and Direction of Counsel. Counsel selected by Borrower to defend Indemnitees will be subject to the approval of those Indemnitees.
In any circumstances in which the indemnity under this Article X applies, Lender may employ its own legal counsel and consultants to prosecute, defend or negotiate any claim or legal or administrative proceeding and Lender, with the prior written
consent of Borrower (which will not be unreasonably withheld, delayed or conditioned) may settle or compromise any action or legal or administrative proceeding. However, unless an Event of Default has occurred and is continuing,

  

			
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or the interests of Borrower and Lender are in conflict, as determined by Lender in Lender’s Discretion, Lender will permit Borrower to undertake the actions referenced in this Article X so
long as Lender approves such action, which approval will not be unreasonably withheld or delayed. Borrower will reimburse Lender upon demand for all costs and expenses incurred by Lender, including all costs of settlements entered into in good
faith, consultants’ fees and Attorneys’ Fees and Costs. 

  

	 	(f)	 Settlement or Compromise of Claims. Borrower will not, without the prior written consent of those Indemnitees who are named as parties to a
claim or legal or administrative proceeding (“Claim”), settle or compromise the Claim if the settlement (i) results in the entry of any judgment that does not include as an unconditional term the delivery by the claimant or
plaintiff to Lender of a written release of those Indemnitees, satisfactory in form and substance to Lender, or (ii) may materially and adversely affect Lender, as determined by Lender in Lender’s Discretion. 

 

	 	(g)	 Effect of Changes to Loan on Indemnification Obligations. Borrower’s obligation to indemnify the Indemnitees will not be limited or
impaired by any of the following, or by any failure of Borrower or any Guarantor to receive notice of or consideration for any of the following: 

  

	 	(i)	 Any amendment or modification of any Loan Document. 

 

	 	(ii)	 Any extensions of time for performance required by any Loan Document. 

 

	 	(iii)	 Any provision in any of the Loan Documents limiting Lender’s recourse to property securing the Indebtedness, or limiting the personal liability
of Borrower or any other party for payment of all or any part of the Indebtedness. 

  

	 	(iv)	 The accuracy or inaccuracy of any representations and warranties made by Borrower under this Loan Agreement or any other Loan Document.

  

	 	(v)	 The release of Borrower or any other Person, by Lender or by operation of law, from performance of any obligation under any Loan Document.

  

	 	(vi)	 The release or substitution in whole or in part of any security for the Indebtedness. 

 

	 	(vii)	 Lender’s failure to properly perfect any Lien or security interest given as security for the Indebtedness. 

 

	 	(h)	 Payments by Borrower. Borrower will, at its own cost and expense, do all of the following: 

 

	 	(i)	 Pay or satisfy any judgment or decree that may be entered against any Indemnitee or Indemnitees in any legal or administrative proceeding

  

			
		  	Page 62

	 	 
incident to any matters against which Indemnitees are entitled to be indemnified under this Article X. 

 

	 	(ii)	 Reimburse Indemnitees for any expenses paid or incurred in connection with any matters against which Indemnitees are entitled to be indemnified
under this Article X. 

  

	 	(iii)	 Reimburse Indemnitees for any and all expenses, including Attorneys’ Fees and Costs, paid or incurred in connection with the enforcement by
Indemnitees of their rights under this Article X, or in monitoring and participating in any legal or administrative proceeding. 

  

	 	(i)	 Other Obligations. The provisions of this Article X will be in addition to any and all other obligations and liabilities that Borrower may
have under applicable law or under other Loan Documents, and each Indemnitee will be entitled to indemnification under this Article X without regard to whether Lender or that Indemnitee has exercised any rights against the Mortgaged Property or any
other security, pursued any rights against any Guarantor, or pursued any other rights available under the Loan Documents or applicable law. If Borrower consists of more than one Person, the obligation of those Persons to indemnify the Indemnitees
under this Article X will be joint and several. The obligation of Borrower to indemnify the Indemnitees under this Article X will survive any repayment or discharge of the Indebtedness, any foreclosure proceeding, any foreclosure sale, any delivery
of any deed in lieu of foreclosure, and any release of record of the Lien of the Security Instrument. Notwithstanding the foregoing, if Lender has never been a mortgagee-in-possession of, or held title to, the Mortgaged Property, Borrower will have
no obligation to indemnify the Indemnitees under this Article X after the date of the release of record of the Lien of the Security Instrument by payment in full at the Maturity Date or by voluntary prepayment in full. 

 

	ARTICLE XI	MISCELLANEOUS PROVISIONS. 

  

	11.01	 Waiver of Statute of Limitations, Offsets and Counterclaims. Borrower waives the right to assert any statute of limitations as a bar to the
enforcement of this Loan Agreement or the Lien of the Security Instrument or to any action brought to enforce any Loan Document. Borrower waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding
brought against it by Lender or otherwise to offset any obligations to make the payments required by the Loan Documents. No failure by Lender to perform any of its obligations under the Loan Documents will be a valid defense to, or result in any
offset against, any payments that Borrower is obligated to make under any of the Loan Documents. 

  

			
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	11.02	Governing Law; Consent to Jurisdiction and Venue. 

  

	 	(a)	 This Loan Agreement, and any Loan Document which does not itself expressly identify the law which is to apply to it, will be governed by the laws of
the Property Jurisdiction. 

  

	 	(b)	 Borrower agrees that any controversy arising under or in relation to the Note, the Security Instrument, this Loan Agreement or any other Loan
Document may be litigated in the Property Jurisdiction. The state and federal courts and authorities with jurisdiction in the Property Jurisdiction will have jurisdiction over all controversies that may arise under or in relation to the Note, any
security for the Indebtedness or any other Loan Document. Borrower irrevocably consents to service, jurisdiction and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile,
habitual residence or otherwise. However, nothing in this Section 11.02 is intended to limit Lender’s right to bring any suit, action or proceeding relating to matters under this Loan Agreement in any court of any other jurisdiction.

  

	11.03	 Notice. 

  

	 	(a)	 All Notices under or concerning this Loan Agreement will be in writing. Each Notice will be deemed given on the earliest to occur of (i) the
date when the Notice is received by the addressee, (ii) the first Business Day after the Notice is delivered to a recognized overnight courier service, with arrangements made for payment of charges for next Business Day delivery, or
(iii) the third Business Day after the Notice is deposited in the United States mail with postage prepaid, certified mail, return receipt requested. Addresses for Notice are as follows: 

 

			
	If to Lender:	  	 c/o GEMSA Loan Services, L.P.

1500 Citywest Boulevard, Suite 200
 Houston,
Texas 77042
 Attention: Loan Servicing

 

	If to Borrower:  	  	 c/o
Legacy Partners Residential, Inc.
 4000 East Third Avenue, Suite 600
 Foster City, California 94404
 Attention: Guy K. Hays/Robert Calleja

 

  

	 	(b)	 Any party to this Loan Agreement may change the address to which Notices intended for it are to be directed by means of Notice given to the other
party in accordance with this Section 11.03. Each party agrees that it will not refuse or reject delivery of any Notice given in accordance with this Section 11.03, that it will acknowledge, in writing, the receipt of any Notice upon
request by the other party and that any Notice rejected or refused by it will be deemed for purposes of this Section 11.03 to have been received by the rejecting party on the date so

  

			
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refused or rejected, as conclusively established by the records of the U.S. Postal Service or the courier service. 

 

	 	(c)	 Any Notice under the Note and any other Loan Document that does not specify how Notices are to be given will be given in accordance with this
Section 11.03. 

  

	11.04	 Successors and Assigns Bound. This Loan Agreement will bind the respective successors and assigns of Borrower and Lender, and the rights
granted by this Loan Agreement will inure to Lender’s successors and assigns. 

  

	11.05	 Joint and Several Liability. If more than one Person signs this Loan Agreement as Borrower, the obligations of such Persons will be joint and
several. 

  

	11.06	 Relationship of Parties; No Third Party Beneficiary. 

 

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

  

	 	(b)	 No creditor of any party to this Loan Agreement and no other Person will be a third party beneficiary of this Loan Agreement or any other Loan
Document. Without limiting the generality of the preceding sentence, (i) any arrangement (“Servicing Arrangement”) between Lender and any Loan Servicer for loss sharing or interim advancement of funds will constitute a
contractual obligation of such Loan Servicer that is independent of the obligation of Borrower for the payment of the Indebtedness, (ii) Borrower will not be a third party beneficiary of any Servicing Arrangement, and (iii) no payment by
the Loan Servicer under any Servicing Arrangement will reduce the amount of the Indebtedness. 

  

	11.07	 Severability; Amendments. 

  

	 	(a)	 The invalidity or unenforceability of any provision of this Loan Agreement will not affect the validity or enforceability of any other provision,
and all other provisions will remain in full force and effect. This Loan Agreement contains the entire agreement among the parties as to the rights granted and the obligations assumed in this Loan Agreement. 

 

	 	(b)	 This Loan Agreement may not be amended or modified except by a writing signed by the party against whom enforcement is sought.

  

	11.08	 Disclosure of Information. Borrower acknowledges that Lender may provide to third parties with an existing or prospective interest in the
servicing, enforcement, evaluation, performance, ownership, purchase, participation or Securitization of the Loan, including any of the Rating Agencies, any entity maintaining databases on the underwriting and performance of commercial mortgage
loans, as well as governmental regulatory agencies 

  

			
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having regulatory authority over Lender, any and all information which Lender now has or may hereafter acquire relating to the Loan, the Mortgaged Property, Borrower, any SPE Equity Owner or any
Guarantor, as Lender determines necessary or desirable and that such information may be included in disclosure documents in connection with a Securitization or syndication of participation interests, including a prospectus, prospectus supplement,
offering memorandum, private placement memorandum or similar document (each, a “Disclosure Document”) and also may be included in any filing with the Securities and Exchange Commission pursuant to the Securities Act or the
Securities Exchange Act. To the fullest extent permitted under applicable law, Borrower irrevocably waives all rights, if any, to prohibit such disclosure, including any right of privacy. 

 

	11.09	 Determinations by Lender. Unless otherwise provided in this Loan Agreement, in any instance where the consent or approval of Lender may be
given or is required, or where any determination, judgment or decision is to be rendered by Lender under this Loan Agreement, the granting, withholding or denial of such consent or approval and the rendering of such determination, judgment or
decision will be made or exercised by Lender (or its designated representative) at its sole and exclusive option and in its sole and absolute discretion. 

 

	11.10	 Sale of Note; Change in Servicer; Loan Servicing. The Note or a partial interest in the Note (together with this Loan Agreement and the other
Loan Documents) may be sold one or more times without prior Notice to Borrower. A sale may result in a change of the Loan Servicer. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of
the Loan Servicer, Borrower will be given Notice of the change. All actions regarding the servicing of the Loan evidenced by the Note, including the collection of payments, the giving and receipt of Notice, inspections of the Mortgaged Property,
inspections of books and records, and the granting of consents and approvals, may be taken by the Loan Servicer unless Borrower receives Notice to the contrary. If Borrower receives conflicting Notices regarding the identity of the Loan Servicer or
any other subject, any such Notice from Lender will govern. 

  

	11.11	 Supplemental Financing. 

  

	 	(a)	 This Section will apply only if at the time of any application referred to in Section 11.11(b), Freddie Mac has in effect a product
described in its Multifamily Seller/Servicer Guide under which it purchases supplemental mortgages on multifamily properties that meet specified criteria (“Supplemental Mortgage Product”). For purposes of this
Section 11.11 only, the term “Freddie Mac” will include any affiliate or subsidiary of Freddie Mac. 

  

	 	(b)	 After the first anniversary of the date of the Senior Indebtedness, Freddie Mac will consider an application from an originating lender that is
generally approved by Freddie Mac to sell mortgages to Freddie Mac under the Supplemental Mortgage Product (“Approved Seller/Servicer”) for the purchase by Freddie Mac of a proposed indebtedness of Borrower to the Approved
Seller/Servicer to be secured by one or more Supplemental Instruments on the Mortgaged Property. 

  

			
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Freddie Mac will purchase each Supplemental Loan secured by the Mortgaged Property if each of the following conditions is satisfied: 

 

	 	(i)	 At the time of the proposed Supplemental Loan, no Event of Default may have occurred and be continuing and no event or condition may have occurred
and be continuing that, with the giving of Notice or the passage of time, or both, would become an Event of Default. 

  

	 	(ii)	 Borrower and the Mortgaged Property must be acceptable to Freddie Mac under its Supplemental Mortgage Product. 

 

	 	(iii)	 New loan documents must be entered into to reflect each Supplemental Loan, such documents to be acceptable to Freddie Mac in its discretion.

  

	 	(iv)	 No Supplemental Loan may cause the combined debt service coverage ratio of the Mortgaged Property after the making of that Supplemental Loan to be
less than the Required DSCR. As used in this Section, the term “combined debt service coverage ratio” means, with respect to the Mortgaged Property, the ratio of: 

 

	 	(A)	 the annual net operating income from the operations of the Mortgaged Property at the time of the proposed Supplemental Loan,

 to 

 

	 	(B)	 the aggregate of the annual principal and interest payable on all of the following: 

 

	 	(I)	 the Indebtedness under this Loan Agreement (using a 30 year amortization schedule), 

 

	 	(II)	 any “Indebtedness” as defined in any security instruments recorded against the Mortgaged Property (using a 30 year amortization
schedule for any Supplemental Loans), and 

  

	 	(III)	 the proposed “Indebtedness” for any Supplemental Loan (using a 30 year amortization schedule). 

As used in this Section, “annual principal and interest” with respect to an adjustable-rate loan will be
calculated by Freddie Mac using an interest rate equal to one of the following: 
  

	 	(X)	 If the loan has an internal interest rate cap, the Capped Interest Rate. 

 

	 	(Y)	 If the loan has an external interest rate cap, the external interest rate cap. 

  

			
		  	Page 67

	 	(Z)	 If the loan has no interest rate cap, the greater of (I) 7%, or (II) the then-current LIBOR Index Rate plus the Margin plus 300 basis
points. 

 The annual net operating income of the Mortgaged Property will be as determined by
Freddie Mac in its discretion considering factors such as income in place at the time of the proposed Supplemental Loan and income during the preceding 12 months, and actual, historical and anticipated operating expenses. Freddie Mac will
determine the combined debt service coverage ratio of the Mortgaged Property based on its underwriting. Borrower will provide Freddie Mac such financial statements and other information Freddie Mac may require to make these determinations.

  

	 	(v)	 No Supplemental Loan may cause the combined loan to value ratio of the Mortgaged Property after the making of that Supplemental Loan to exceed the
Required LTV, as determined by Freddie Mac. As used in this Section, “combined loan to value ratio” means, with respect to the Mortgaged Property, the ratio, expressed as a percentage, of: 

 

	 	(A)	 the aggregate outstanding principal balances of all of the following: 

 

	 	(I)	 the Indebtedness under this Loan Agreement, 

  

	 	(II)	 any “Indebtedness” as defined in any security instruments recorded against the Mortgaged Property, and 

 

	 	(III)	 the proposed “Indebtedness” for any Supplemental Loan, 

to 
  

	 	(B)	 the value of the Mortgaged Property. 

 Freddie Mac will determine the combined loan to value ratio of the Mortgaged Property based on its underwriting. Borrower will provide Freddie Mac such financial statements and other information Freddie
Mac may require to make these determinations. In addition, Freddie Mac, at Borrower’s expense, may obtain MAI appraisals of the Mortgaged Property in order to assist Freddie Mac in making the determinations under this Section. If Freddie Mac
requires an appraisal, then the value of the Mortgaged Property that will be used to determine whether the Required LTV has been met will be the lesser of the appraised value set forth in such appraisal or the value of the Mortgaged Property as
determined by Freddie Mac. 

  

			
		  	Page 68

	 	(vi)	 Borrower’s organizational documents are amended to permit Borrower to incur additional debt in the form of Supplemental Loans (Lender will
consent to such amendment(s)). 

  

	 	(vii)	 One or more Persons acceptable to Freddie Mac executes and delivers to the Approved Seller/Servicer a Guaranty in a form acceptable to Freddie Mac
with respect to the exceptions to non-recourse liability described in Freddie Mac’s form promissory note, unless Freddie Mac has elected to waive its requirement for a Guaranty. 

 

	 	(viii)	 The loan term of each Supplemental Loan will be coterminous with the Senior Indebtedness or longer than the Senior Indebtedness, in Freddie
Mac’s discretion. 

  

	 	(ix)	 The Prepayment Premium Period of each Supplemental Loan will be coterminous with the Prepayment Premium Period or the combined Lockout Period and
Defeasance Period, as applicable, of the Senior Indebtedness. 

  

	 	(x)	 The interest rate of each Supplemental Loan will be determined by Freddie Mac in its discretion. 

 

	 	(xi)	 Lender enters into an intercreditor agreement (“Intercreditor Agreement”) acceptable to Freddie Mac and to Lender for each
Supplemental Loan. 

  

	 	(xii)	 Borrower’s payment of fees and other expenses charged by Lender, Freddie Mac, the Approved Seller/Servicer, and the Rating Agencies (including
reasonable Attorneys’ Fees and Costs) in connection with reviewing and originating each Supplemental Loan. 

  

	 	(xiii)	 Notwithstanding anything to the contrary in Article IV, Borrower will make all required deposits under the Senior Indebtedness for the payment of
any Impositions, so long as a Supplemental Loan is outstanding, and such deposits will be credited to the payment of any such required Impositions under any Supplemental Loan. 

 

	 	(xiv)	 If any covenants, conditions and restrictions affecting the Mortgaged Property provide for a lien for any assessments or other unpaid amounts,
Borrower will provide satisfactory evidence that such lien will be subordinate to the lien of the Supplemental Instrument. 

  

	 	(xv)	 All other requirements of the Supplemental Mortgage Product must be met, unless Freddie Mac has elected to waive one or more of its requirements.

  

			
		  	Page 69

	 	(c)	 No later than 5 Business Days after Lender’s receipt of a written request from Borrower, Lender will provide the following information to
an Approved Seller/Servicer: 

  

	 	(i)	 The then-current outstanding principal balance of the Senior Indebtedness. 

 

	 	(ii)	 Payment history of the Senior Indebtedness. 

  

	 	(iii)	 Whether any Reserve Funds are being collected on the Senior Indebtedness and the amount of each such Reserve Fund deposit as of the date of the
request. 

  

	 	(iv)	 Whether any Repairs, Capital Replacements or improvements or rental achievement or burn-off guaranty requirements are existing or outstanding under
the terms of the Senior Indebtedness. 

  

	 	(v)	 A copy of the most recent inspection report for the Mortgaged Property. 

 

	 	(vi)	 Whether any modifications or amendments have been made to the Loan Documents for the Senior Indebtedness since origination of the Senior
Indebtedness and, if applicable, a copy of such modifications and amendments. 

  

	 	(vii)	 Whether to Lender’s knowledge any Event of Default exists under the Senior Indebtedness. 

Lender will only be obligated to provide this information in connection with Borrower’s request for a Supplemental
Loan from an Approved Seller/Servicer. Notwithstanding anything in this Section to the contrary, if Freddie Mac is the owner of the Note, this Section 11.11(c) is not applicable. 

 

	 	(d)	 Lender will have no obligation to consent to any mortgage or Lien on the Mortgaged Property that secures any indebtedness other than the
Indebtedness, except as set forth in this Loan Agreement. 

  

	 	(e)	 If a Supplemental Loan is made to Borrower, Borrower agrees that the terms of the Intercreditor Agreement will govern with respect to any
distributions of excess proceeds by Lender to the Supplemental Lender, and Borrower agrees that Lender may distribute any excess proceeds received by Lender pursuant to the Loan Documents to Supplemental Lender pursuant to the Intercreditor
Agreement. 

  

	11.12	 Defeasance. (Section Applies if Loan is Assigned to REMIC Trust Prior to the Cut-off Date). This Section 11.12 will apply if the
Note is assigned to a REMIC trust prior to the Cut-off Date, and, subject to Section 11.12(a) and (c), Borrower will have the right to defease the Loan in whole (“Defeasance”) and obtain the release of the Mortgaged Property
from the Lien of the Security Instrument upon the satisfaction of each of the following conditions: 

  

			
		  	Page 70

	 	(a)	 Borrower will not have the right to obtain Defeasance at any of the following times: 

 

	 	(i)	 If the Loan is not assigned to a REMIC trust. 

  

	 	(ii)	 During the Lockout Period. 

  

	 	(iii)	 After the expiration of the Defeasance Period. 

  

	 	(iv)	 After Lender has accelerated the maturity of the unpaid principal balance of, accrued interest on, and other amounts payable under, the Note
pursuant to Section 11 of the Note. 

  

	 	(b)	 Borrower will give Lender Notice (“Defeasance Notice”) specifying a Business Day (“Defeasance Closing Date”) on
which Borrower desires to close the Defeasance. The Defeasance Closing Date specified by Borrower may not be more than 60 calendar days, nor less than 30 calendar days, after the date on which the Defeasance Notice is received by Lender.
Lender will acknowledge receipt of the Defeasance Notice and will state in such receipt whether Lender will designate the Successor Borrower or will permit Borrower to designate the Successor Borrower. 

 

	 	(c)	 The Defeasance Notice must be accompanied by a $10,000 non-refundable fee (“Defeasance Fee”). If Lender does not receive the
Defeasance Fee, then Borrower’s right to obtain Defeasance pursuant to that Defeasance Notice will terminate. 

  

	              (d) 
	(i)	 If Borrower timely pays the Defeasance Fee, but Borrower fails to perform its other obligations under this Section, Lender will have
the right to retain the Defeasance Fee as liquidated damages for Borrower’s default and, except as provided in Section 11.12(d)(ii), Borrower will be released from all further obligations under this Section 11.12. Borrower
acknowledges that Lender will incur financing costs in arranging and preparing for the release of the Mortgaged Property from the Lien of the Security Instrument in reliance on the executed Defeasance Notice. Borrower agrees that the Defeasance Fee
represents a fair and reasonable estimate, taking into account all circumstances existing on the date of this Loan Agreement, of the damages Lender will incur by reason of Borrower’s default. 

 

	 	(ii)	 If the Defeasance is not consummated on the Defeasance Closing Date for any reason, Borrower agrees to reimburse Lender for all third party costs
and expenses (other than financing costs covered by Section 11.12(d)(i)) incurred by Lender in reliance on the executed Defeasance Notice, within 5 Business Days after Borrower receives a written demand for payment, accompanied by a statement,
in reasonable detail, of Lender’s third party costs and expenses. 

  

			
		  	Page 71

	 	(iii)	 All payments required to be made by Borrower to Lender pursuant to this Section 11.12 will be made by wire transfer of immediately available
funds to the account(s) designated by Lender in its acknowledgement of the Defeasance Notice. 

  

	 	(e)	 No Event of Default has occurred and is continuing. 

 

	 	(f)	 Each of the following documents must be delivered to Lender on or prior to the Defeasance Closing Date: 

 

	 	(i)	 An opinion of counsel for Borrower, in form and substance satisfactory to Lender, to the effect that Lender has a valid and perfected Lien and
security interest of first priority in the Defeasance Collateral and the proceeds thereof. 

  

	 	(ii)	 An opinion of counsel for Borrower, in form and substance satisfactory to Lender, to the effect that the Pledge Agreement is duly authorized,
executed, delivered and enforceable against Borrower in accordance with the respective terms. 

  

	 	(iii)	 Unless waived by Lender or unless Lender designates the Successor Borrower, an opinion of counsel for Successor Borrower, in form and substance
satisfactory to Lender, to the effect that the Transfer and Assumption Agreement is duly authorized, executed, delivered and enforceable against Successor Borrower in accordance with the respective terms. 

 

	 	(iv)	 Unless waived by Lender or unless Lender designates the Successor Borrower, an opinion of counsel for Successor Borrower, in form and substance
satisfactory to Lender, to the effect that the Successor Borrower has been validly created. 

  

	 	(v)	 If Borrower designates the Successor Borrower, an opinion of counsel for Successor Borrower, in form and substance satisfactory to Lender and to the
Rating Agencies, with regard to nonconsolidation of the assets of the Successor Borrower with those of its Affiliates by a bankruptcy court. 

  

	 	(vi)	 Unless waived by Lender, an opinion of counsel for Borrower, in form and substance satisfactory to Lender, confirming each of the following:

  

	 	(A)	 If, as of the Defeasance Closing Date, the Note is held by a REMIC trust, (1) the Defeasance has been effected in accordance with the
requirements of Treasury Regulation Section 1.860G-2(a)(8) (as such regulation may be modified, amended or replaced from time to time), (2) the qualification and status of the REMIC trust as a REMIC will not be adversely affected or
impaired as a result of the Defeasance, and (3) the REMIC trust will not incur a 

  

			
		  	Page 72

	 	 
tax under Section 860G(d) of the Tax Code as a result of the Defeasance. 

  

	 	(B)	 The Defeasance will not result in a “sale or exchange” of the Note within the meaning of Section 1001(c) of the Tax Code and the
temporary and final regulations promulgated thereunder. 

  

	 	(vii)	 Unless waived by Lender, a written certificate from an independent certified public accounting firm (reasonably acceptable to Lender), confirming
that the Defeasance Collateral will generate cash sufficient to make all Scheduled Debt Payments as they fall due under the Note, including full payment due on the Note on the Maturity Date. 

 

	 	(viii)	 Lender’s form of a pledge and security agreement (“Pledge Agreement”) and financing statements which pledge and create a first
priority security interest in the Defeasance Collateral in favor of Lender. 

  

	 	(ix)	 Lender’s form of a transfer and assumption agreement (“Transfer and Assumption Agreement”), whereupon Borrower and any
Guarantor (in each case, subject to satisfaction of all requirements under this Loan Agreement) will be relieved from liability in connection with the Loan (other than any liability under Sections 6.12 and 10.02 for events that occur prior to the
Defeasance Closing Date, whether discovered before or after the Defeasance Closing Date) and Successor Borrower will assume all remaining obligations. 

 

	 	(x)	 Forms of all documents necessary to release the Mortgaged Property from the Liens created by the Security Instrument and related UCC financing
statements (collectively, “Release Instruments”), each in appropriate form required by the state in which the Mortgaged Property is located. 

 

	 	(xi)	 Such other opinions, certificates, documents or instruments as Lender may reasonably request. 

 

	 	(g)	 Borrower will deliver to Lender on or prior to the Defeasance Closing Date each of the following: 

 

	 	(i)	 The Defeasance Collateral, which meets all of the following requirements: 

 

	 	(A)	 It is owned by Borrower, free and clear of all Liens and claims of third-parties. 

 

	 	(B)	 It is in an amount to provide for (A) redemption payments to occur prior, but as close as possible, to all successive Installment Due Dates
occurring under the Note after the Defeasance Closing Date, and (B) deliver redemption proceeds at least equal to the amount of principal and interest due on the Note on each Installment Due

  

			
		  	Page 73

	 	 
Date including full payment due on the Note on the Maturity Date (“Scheduled Debt Payments”). 

 

	 	(C)	 It is arranged such that redemption payments received from the Defeasance Collateral are paid directly to Lender to be applied on account of the
Scheduled Debt Payments. 

  

	 	(D)	 Unless otherwise agreed in writing by Lender, the pledge of the Defeasance Collateral will be effected through the book-entry facilities of a
qualified securities intermediary designated by Lender in conformity with all applicable laws. 

  

	 	(ii)	 All accrued and unpaid interest and all other sums due under the Note, this Loan Agreement and under the other Loan Documents, including all amounts
due under Section 11.12(i), up to the Defeasance Closing Date. 

  

	 	(h)	 If Lender permits Borrower to designate the Successor Borrower, then Borrower will, at Borrower’s expense, designate or establish an
accommodation borrower (“Successor Borrower”) satisfactory to Lender (or Lender, at its option, may designate the Successor Borrower) which satisfies Lender’s then current requirements for a “Single Purpose Entity” to
assume at the time of Defeasance ownership of the Defeasance Collateral and liability for all of Borrower’s obligations under the Pledge Agreement and the Loan Documents (to the extent that liability thereunder survives release of the Lien of
the Security Instrument). Borrower will pay to Successor Borrower a fee of $1,000.00 as consideration of Successor Borrower’s assumption of Borrower’s obligations under the Loan Documents. Notwithstanding any contrary provision in this
Loan Agreement, no Transfer Fee is payable to Lender upon a Transfer of the Loan in accordance with this Section. 

  

	 	(i)	 Borrower will pay all reasonable costs and expenses incurred by Lender in connection with the Defeasance in full on or prior to the Defeasance
Closing Date, which payment is required prior to Lender’s issuance of the Release Instruments and whether or not Defeasance is completed. Such expenses include the following: 

 

	 	(A)	 All fees, costs and expenses incurred by Lender and its agents in connection with the Defeasance (including reasonable Attorneys’ Fees and
Costs for the review and preparation of the Pledge Agreement and of the other materials described in this Loan Agreement and any related documentation, and any servicing fees, Rating Agencies’ fees or other costs related to the Defeasance).

  

	 	(B)	 Reasonable Attorneys’ Fees and Costs. 

  

	 	(C)	 A processing fee to cover Lender’s administrative costs to process Borrower’s Defeasance request.

  

			
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Lender reserves the right to require that Borrower post a deposit to cover costs which Lender reasonably anticipates will be incurred. 

 

	11.13	 Lender’s Rights to Sell or Securitize. Borrower acknowledges that Lender, and each successor to Lender’s interest, may (without
prior Notice to Borrower or Borrower’s prior consent), sell or grant participations in the Loan (or any part of the Loan), sell or subcontract the servicing rights related to the Loan, securitize the Loan or include the Loan as part of a trust.
Borrower, at its expense, agrees to cooperate with all reasonable requests of Lender in connection with any of the foregoing including executing any financing statements or other documents deemed necessary by Lender or its transferee to create,
perfect or preserve the rights and interest to be acquired by such transferee, providing any updated financial information with appropriate verification through auditors letters, delivering revised organizational documents and counsel opinions
satisfactory to the Rating Agencies, executed amendments to the Loan Documents, and review information contained in a preliminary or final private placement memorandum, prospectus, prospectus supplements or other Disclosure Document, and providing a
mortgagor estoppel certificate and such other information about Borrower, any SPE Equity Owner, any Guarantor, any Property Manager or the Mortgaged Property as Lender may require for Lender’s offering materials. 

 

	11.14	 Cooperation with Rating Agencies and Investors. Borrower covenants and agrees that if Lender decides to include the Loan as an asset of a
Secondary Market Transaction, Borrower will (a) at Lender’s request, meet with representatives of the Rating Agencies and/or investors to discuss the business and operations of the Mortgaged Property, and (b) permit Lender or its
representatives to provide related information to the Rating Agencies and/or investors, and (c) cooperate with the reasonable requests of the Rating Agencies and/or investors in connection with all of the foregoing.

  

	11.15	 Time is of the Essence. Time is of the essence with respect to each covenant of this Loan Agreement. 

 

	ARTICLE XII	DEFINITIONS. 

 The
following terms, when used in this Loan Agreement (including when used in the recitals), will have the following meanings: 

“Affiliate” of any Person means (i) any other Person which, directly or indirectly, is in Control of, is under the
Control of, or is under common Control with, such Person; (ii) any other Person who is a director or officer of (A) such Person, (B) any subsidiary of such Person, or (C) any Person described in clause (i) of this
definition; or (iii) any corporation, limited liability company or partnership which has as a director any Person described in Section (ii) of this definition. 
 “Aggregate Carrier Exposure” means: 
  

	 	(i)	 For each individual carrier providing Hazard Insurance, one of the following: 

  

			
		  	Page 75

	 	(A)	 The sum of the required building coverage limits and required business income/rental value Insurance if such coverage is provided by specific
Insurance or a policy covering only the Mortgaged Property. 

  

	 	(B)	 The blanket Insurance or master program limit if such coverage is provided by a Blanket Insurance Policy or master program from a single carrier.

  

	 	(C)	 The total limit provided by the carrier in all layers in which the carrier participates if such coverage is provided by a Blanket Insurance Policy
or master program with more than one carrier participating with layered limits. 

  

	 	(ii)	 For each individual carrier providing liability Insurance pursuant to Section 6.10(a)(ii) or as otherwise required by Lender, one of the
following: 

  

	 	(A)	 The total aggregate limits (general liability plus excess/umbrella) if such coverage is provided by specific Insurance or a policy covering only the
Mortgaged Property. 

  

	 	(B)	 The total aggregate limits (general liability plus excess/umbrella) if such coverage is provided by liability Insurance for multiple properties or a
master program from a single carrier. 

  

	 	(C)	 The total limit provided by the carrier in all layers in which the carrier participates if such coverage is provided by an individual policy,
liability Insurance policy for multiple properties or a master program with more than one carrier participating with layered limits Blanket Insurance Policy or master program with more than one carrier participating with layered limits.

 “Approved Seller/Servicer” is defined in Section 11.11(b). 

“Assignment of Management Agreement” means the Assignment of Management Agreement and Subordination of Management Fees
of even date herewith among Borrower, Lender and Property Manager, including all schedules, riders, allonges and addenda, as such Assignment of Management Agreement may be amended from time to time. 

“Attorneys’ Fees and Costs” means (i) fees and out of pocket costs of Lender’s and Loan Servicer’s
attorneys, as applicable, including costs of Lender’s and Loan Servicer’s in-house counsel, support staff costs, costs of preparing for litigation, computerized research, telephone and facsimile transmission expenses, mileage, deposition
costs, postage, duplicating, process service, videotaping and similar costs and expenses; (ii) costs and fees of expert witnesses, including appraisers; (iii) investigatory fees; and (iv) costs for any opinion required by Lender
pursuant to the terms of the Loan Documents. 
 “Bankruptcy Code” means the United States Bankruptcy Code, 11
U.S.C. Section 101 et seq., as amended from time to time. 

  

			
		  	Page 76

 “Blanket Insurance Policy” is defined in Section 6.10(h). 

“Borrower” means all Persons identified as “Borrower” in the first paragraph of this Loan Agreement, together
with their successors and assigns. 
 “Borrower Information” is defined in Section 10.02(d). 

“Borrower Principal” means any of the following: 

 

	 	(i)	 Any general partner of Borrower (if Borrower is a partnership). 

 

	 	(ii)	 Any manager or managing member of Borrower (if Borrower is a limited liability company). 

 

	 	(iii)	 Any Person (limited partner, member or shareholder) with a collective direct or indirect equity interest in Borrower equal to or greater than 25%.

  

	 	(iv)	 Any Guarantor of all or any portion of the Loan or of any obligations of Borrower under the Loan Documents. 

“Borrower Proof of Loss Threshold” means $147,000.00. 

“Borrower Proof of Loss Maximum” means $588,000.00. 

“Business Day” means any day other than a Saturday, a Sunday, or any other day on which Lender or the national banking
associations are not open for business. 
 “Cap Agreement” means any interest rate cap agreement, interest rate
swap agreement or other interest rate-hedging contract or agreement obtained by Borrower from a Cap Provider as a requirement of any Loan Document or as a condition of Lender’s making the Loan. 

“Cap Collateral” means all of the following: 

 

	 	(i)	 The Cap Agreement. 

  

	 	(ii)	 The Cap Payments. 

  

	 	(iii)	 All rights of Borrower under any Cap Agreement and all rights of Borrower to all Cap Payments, including contract rights and general intangibles,
whether existing now or arising after the date of this Loan Agreement. 

  

	 	(iv)	 All rights, liens and security interests or guaranties granted by a Cap Provider or any other Person to secure or guaranty payment of any Cap
Payments whether existing now or granted after the date of this Loan Agreement. 

  

	 	(v)	 All documents, writings, books, files, records and other documents arising from or relating to any of the foregoing, whether existing now or created
after the date of this Loan Agreement. 

  

			
		  	Page 77

	 	(vi)	 All cash and non-cash proceeds and products of (ii) through (v) of this definition. 

“Cap Payment(s)” means any and all monies payable pursuant to any Cap Agreement by a Cap Provider. 

“Cap Provider” means the interest rate cap provider or other counterparty to a Cap Agreement or any guarantor of the
obligations of any such cap provider or counterparty. 
 “Capital Replacement” means the replacement of those
items listed on Exhibit F and such other replacements of equipment, major components or capital systems related to the Improvements as may be approved in writing or required by Lender. 

“Capped Interest Rate” is defined in the Note. 
 “Claim” is defined in Section 10.02(f). 
 “Clean
Site Assessment” is defined in Section 7.05(b)(i). 
 “Closing Date” means the date on which
Lender disburses the proceeds of the Loan to or for the account of Borrower. 
 “Commitment Letter” means the
fully executed commitment letter or early rate lock application between Lender and Borrower issued in connection with the Loan, as such document may have been modified, amended or extended. 

“Completion Date” means August 6, 2013, or such other date(s) as may be specified for particular Repairs in
Exhibit C, as such date may be extended. 
 “Condemnation” is defined in Section 6.11(a).

 “Control” means to possess, directly or indirectly, the power to direct or cause the direction of the
management or policies of a Person, whether through the ownership of voting securities, by contract or otherwise, including the power to elect a majority of the directors or trustees of a corporation or trust, as the case may be. 

“Cut-off Date” is defined in the Note. 
 “Default Rate” is defined in the Note. 

“Defeasance” is defined in Section 11.12. 
 “Defeasance Closing Date” is defined in Section 11.12(b). 

“Defeasance Collateral” means (i) a Freddie Mac Debt Security, (ii) a Fannie Mae Debt Security,
(iii) U.S. Treasury Obligations, or (iv) FHLB Obligations. 
 “Defeasance Fee” is defined in
Section 11.12(c). 
 “Defeasance Notice” is defined in Section 11.12(b). 

  

			
		  	Page 78

 “Defeasance Period” is defined in the Note. 

“Designated Entity for Transfers” means each entity so identified in Exhibit I, and that entity’s successors
and permitted assigns. 
 “Disclosure Document” is defined in Section 11.08. 

“Eligible Account” means an identifiable account which is separate from all other funds held by the holding institution
that is either (i) an account or accounts maintained with the corporate trust department of a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution, or (ii) a
segregated trust account or accounts maintained with the corporate trust department of a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository
institution or trust company is subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state
authority. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument. 

“Eligible Institution” means a federal or state chartered depository institution or trust company insured by the Federal
Deposit Insurance Corporation, the short term unsecured debt obligations or commercial paper of which are rated at least A-1 by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., P-1 by Moody’s
Investors Service, Inc. and F-3 by Fitch, Inc. in the case of accounts in which funds are held for 30 days or less or, in the case of letters of credit or accounts in which funds are held for more than 30 days, the long term unsecured debt
obligations of which are rated at least “A” by Fitch, Inc. and Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and “A2” by Moody’s Investors Service, Inc. If at any time an
Eligible Institution does not meet the required rating, the Loan Servicer must move the Eligible Account within 30 days of such event to an appropriately rated Eligible Institution. 

“Environmental Inspections” is defined in Section 6.12(e). 

“Environmental Permit” means any permit, license, or other authorization issued under any Hazardous Materials Law with
respect to any activities or businesses conducted on or in relation to the Mortgaged Property. 
 “ERISA” means
the Employee Retirement Income Security Act of 1974, as amended. 
 “Event of Default” means the occurrence of
any event listed in Section 9.01. 
 “External Cap Agreement Reserve Fund” means the account established
pursuant to Section 4.07, if applicable, to pay for the cost of a Replacement Cap Agreement. 
 “Fannie Mae Debt
Security” means any non-callable bond, debenture, note, or other similar debt obligation issued by the Federal National Mortgage Association. 
 “FHLB Obligations” mean direct, non-callable and non-redeemable securities issued, or fully insured as to payment, by the Federal Home Loan Bank. 

  

			
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 “Fixtures” means all property owned by Borrower which is attached to the
Land or the Improvements so as to constitute a fixture under applicable law, including: machinery, equipment, engines, boilers, incinerators and installed building materials; systems and equipment for the purpose of supplying or distributing
heating, cooling, electricity, gas, water, air or light; antennas, cable, wiring and conduits used in connection with radio, television, security, fire prevention or fire detection or otherwise used to carry electronic signals; telephone systems and
equipment; elevators and related machinery and equipment; fire detection, prevention and extinguishing systems and apparatus; security and access control systems and apparatus; plumbing systems; water heaters, ranges, stoves, microwave ovens,
refrigerators, dishwashers, garbage disposers, washers, dryers and other appliances; light fixtures, awnings, storm windows and storm doors; pictures, screens, blinds, shades, curtains and curtain rods; mirrors; cabinets, paneling, rugs and floor
and wall coverings; fences, trees and plants; swimming pools; and exercise equipment. 
 “Freddie Mac” means
the Federal Home Loan Mortgage Corporation. 
 “Freddie Mac Debt Security” means any non-callable bond,
debenture, note, or other similar debt obligation issued by Freddie Mac. 
 “Freddie Mac Web Site” means
the web site of Freddie Mac, located at www.freddiemac.com.  
 “GAAP” means generally accepted
accounting principles. 
 “Governmental Authority” means any board, commission, department, agency or body of
any municipal, county, state or federal governmental unit, or any subdivision of any of them, that has or acquires jurisdiction over the Mortgaged Property, or the use, operation or improvement of the Mortgaged Property, or over Borrower.

 “Guarantor” means the Person(s) required by Lender to guaranty all or a portion of Borrower’s
obligations under the Loan Documents, as set forth in the Guaranty. The required Guarantors are set forth in Exhibit I. 

“Guaranty” means the Guaranty executed by Guarantor and/or any replacement or supplemental guaranty executed pursuant to
the terms of this Loan Agreement. 
 “Hazard Insurance” is defined in Section 6.10(a). 

“Hazardous Materials” means petroleum and petroleum products and compounds containing them, including gasoline, diesel
fuel and oil; explosives; flammable materials; radioactive materials; polychlorinated biphenyls (PCBs) and compounds containing them; lead and lead-based paint; asbestos or asbestos containing materials in any form that is or could become friable;
underground or above-ground storage tanks, whether empty or containing any substance; any substance the presence of which on the Mortgaged Property is prohibited by any Governmental Authority; any substance that requires special handling and any
other material or substance now or in the future that (i) is defined as a “hazardous substance,” “hazardous material,” “hazardous waste,” “toxic substance,” “toxic pollutant,”
“contaminant,” or “pollutant” by or within the meaning of any Hazardous Materials Law, or (ii) is regulated in any way by or within the meaning of any Hazardous Materials Law. 

  

			
		  	Page 80

 “Hazardous Materials Law” and “Hazardous Materials Laws”
means any and all federal, state and local laws, ordinances, regulations and standards, rules, policies and other governmental requirements, administrative rulings and court judgments and decrees in effect now or in the future, including all
amendments, that relate to Hazardous Materials or the protection of human health or the environment and apply to Borrower or to the Mortgaged Property. Hazardous Materials Laws include the Comprehensive Environmental Response, Compensation and
Liability Act, 42 U.S.C. Section 9601, et seq., the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Section 6901, et seq., the Toxic Substance Control Act, 15 U.S.C. Section 2601, et seq., the Clean Water Act, 33 U.S.C.
Section 1251, et seq., and the Hazardous Materials Transportation Act, 49 U.S.C. Section 5101 et seq., and their state analogs. 
 “HVAC System” is defined in Section 6.10(a)(v). 

“Immediate Family Members” means a Person’s spouse, parent, child (including stepchild), grandchild (including
step-grandchild) or sibling. 
 “Imposition Reserve Deposits” is defined in Section 4.02(a). 

“Impositions” is defined in Section 4.02(a). 

“Improvements” means the buildings, structures and improvements now constructed or at any time in the future constructed
or placed upon the Land, including any future alterations, replacements and additions. 
 “Indebtedness” means
the principal of, interest at the fixed or variable rate set forth in the Note on, and all other amounts due at any time under, the Note, this Loan Agreement or any other Loan Document, including prepayment premiums, late charges, default interest,
and advances as provided in Section 9.02 to protect the security of the Security Instrument. 
 “Indemnified
Party/ies” is defined in Section 10.02(d). 
 “Indemnitees” is defined in Section 10.02(a).

 “Inspection Fee” means a fee payable to Lender or Loan Servicer for performing any inspection required by
this Agreement in an amount not to exceed $500.00 per inspection. 
 “Insurance” means Hazard Insurance,
liability insurance and all other insurance that Lender requires Borrower to maintain pursuant to this Loan Agreement. 

“Intercreditor Agreement” is defined in Section 11.11(b)(xi). 

“Investment Fee” means a one time fee for establishing the (i) Replacement Reserve Fund in the amount of $500.00,
and (ii) Repair Reserve Fund in the amount of $500.00. 
 “Issuer Group” is defined in
Section 10.02(d). 
 “Issuer Person” is defined in Section 10.02(d). 

  

			
		  	Page 81

 “Land” means the land described in Exhibit A. 

“Leases” means all present and future leases, subleases, licenses, concessions or grants or other possessory interests
now or hereafter in force, whether oral or written, covering or affecting the Mortgaged Property, or any portion of the Mortgaged Property (including proprietary leases or occupancy agreements if Borrower is a cooperative housing corporation), and
all modifications, extensions or renewals. 
 “Lender” means the entity identified as “Lender” in the
first paragraph of this Loan Agreement, or any subsequent holder of the Note. 
 “Lender’s Discretion”
means Lender’s reasonable discretion unless otherwise set forth in this Loan Agreement. 
 “Letter of
Credit” means any letter of credit required under the terms of this Loan Agreement. 
 “LIBOR Index
Rate,” if applicable, is defined in the Note. 
 “Lien” means any mortgage, deed of trust, deed to
secure debt, security interest or other lien or encumbrance on the Mortgaged Property. 
 “Loan” is defined on
Page 1 of this Loan Agreement. 
 “Loan Agreement” means this Multifamily Loan and Security Agreement.

 “Loan Application” is defined in Section 5.16(a). 

“Loan Documents” means the Note, the Security Instrument, this Loan Agreement, all guaranties, all indemnity agreements,
all collateral agreements, UCC filings, O&M Programs, the MMP and any other documents now or in the future executed by Borrower, any Guarantor or any other Person in connection with the Loan evidenced by the Note, as such documents may be
amended from time to time. 
 “Loan Servicer” means the entity that from time to time is designated by Lender
to collect payments and deposits and receive Notices under the Note, the Security Instrument, this Loan Agreement and any other Loan Document, and otherwise to service the Loan evidenced by the Note for the benefit of Lender. Unless Borrower
receives Notice to the contrary, the Loan Servicer is the entity identified as “Lender” in the first paragraph of this Loan Agreement. 
 “Lockout Period” is defined in the Note. 

“Manager” or “Managers” means a Person who is named or designated as a manager or managing member or
otherwise acts in the capacity of a manager or managing member of a limited liability company in a limited liability company agreement or similar instrument under which the limited liability company is formed or operated. 

“Margin,” if applicable, is defined in the Note. 

  

			
		  	Page 82

 “Material Adverse Change” means any set of circumstances or events which,
in Lender’s Discretion would have or is then reasonably expected to have a Material Adverse Effect on (i) the validity or enforceability of this Loan Agreement or the other Loan Documents taken as a whole, (ii) the ability of Borrower
to duly and punctually pay the Indebtedness or perform its obligations, (iii) the ability of Lender to enforce its legal remedies pursuant to this Loan Agreement or the other Loan Documents taken as a whole, including by realizing upon any
collateral or any guaranty, (iv) the business prospects or financial condition of Borrower or any Guarantor, (v) the financial performance or market value of the Mortgaged Property, or (vi) the compliance of the Mortgaged Property
with any law dealing with the use, ownership or operation of the Mortgaged Property or any law, the noncompliance with which could reasonably be expected to have a Material Adverse Effect on the financial performance or market value of the Mortgaged
Property. 
 “Material Adverse Effect” means a significant detrimental effect on (i) the Mortgaged
Property, (ii) the business, prospects, profits, operations or condition (financial or otherwise) of Borrower, (iii) the enforceability, validity, perfection or priority of the Lien of any Loan Document, or (iv) the ability of
Borrower to perform any obligations under any Loan Document. 
 “Maturity Date” means the Scheduled Maturity
Date, as defined in the Note. 
 “MMP” means a moisture management plan to control water intrusion and prevent
the development of Mold or moisture at the Mortgaged Property throughout the term of this Loan Agreement. 
 “Modified
Non-Residential Lease” means an extension or modification of any Non-Residential Lease, which Non-Residential Lease was in existence as of the date of this Loan Agreement. 

“Mold” means mold, fungus, microbial contamination or pathogenic organisms. 

“Mortgaged Property” means all of Borrower’s present and future right, title and interest in and to all of the
following: 
  

	 	(i)	 The Land, or, if Borrower’s interest in the Land is pursuant to a Ground Lease, the Ground Lease and the Leasehold Estate.

  

	 	(ii)	 The Improvements. 

  

	 	(iii)	 The Fixtures. 

  

	 	(iv)	 The Personalty. 

  

	 	(v)	 All current and future rights, including air rights, development rights, zoning rights and other similar rights or interests, easements, tenements,
rights of way, strips and gores of land, streets, alleys, roads, sewer rights, waters, watercourses and appurtenances related to or benefiting the Land or the Improvements, or both, and all rights-of-way, streets, alleys and roads which may have
been or may in the future be vacated. 

  

			
		  	Page 83

	 	(vi)	 All proceeds paid or to be paid by any insurer of the Land, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged
Property, whether or not Borrower obtained the Insurance pursuant to Lender’s requirement. 

  

	 	(vii)	 All awards, payments and other compensation made or to be made by any municipal, state or federal authority with respect to the Land or the
Leasehold Estate, as applicable, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property, including any awards or settlements resulting from Condemnation proceedings or the total or partial taking of the Land, the
Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property under the power of eminent domain or otherwise and including any conveyance in lieu thereof. 

 

	 	(viii)	 All contracts, options and other agreements for the sale of the Land, or the Leasehold Estate, as applicable, the Improvements, the Fixtures, the
Personalty or any other part of the Mortgaged Property entered into by Borrower now or in the future, including cash or securities deposited to secure performance by parties of their obligations. 

 

	 	(ix)	 All proceeds from the conversion, voluntary or involuntary, of any of the items described in items (i) through (viii) of this definition,
into cash or liquidated claims, and the right to collect such proceeds. 

  

	 	(x)	 All Rents and Leases. 

  

	 	(xi)	 All earnings, royalties, accounts receivable, issues and profits from the Land, the Improvements or any other part of the Mortgaged Property, and
all undisbursed proceeds of the Loan. 

  

	 	(xii)	 All Imposition Reserve Deposits. 

  

	 	(xiii)	 All refunds or rebates of Impositions by any Governmental Authority or insurance company (other than refunds applicable to periods before the real
property tax year in which this Loan Agreement is dated). 

  

	 	(xiv)	 All tenant security deposits which have not been forfeited by any tenant under any Lease and any bond or other security in lieu of such deposits.

  

	 	(xv)	 All names under or by which any of the Mortgaged Property may be operated or known, and all trademarks, trade names and goodwill relating to any of
the Mortgaged Property. 

  

	 	(xvi)	 If required by the terms of Section 4.05, all rights under the Letter of Credit and the Proceeds, as such Proceeds may increase or decrease
from time to time. 

  

	 	(xvii)	 If the Note provides for interest to accrue at an adjustable or variable rate and there is a Cap Agreement, the Cap Collateral.

  

			
		  	Page 84

 “New Non-Residential Lease” is any Non-Residential Lease not in existence
as of the date of this Loan Agreement. 
 “NFIP” is defined in Section 6.10(a)(iv). 

“Non-Residential Lease” is a Lease of a portion of the Mortgaged Property to be used for non-residential purposes.

 “Note” means the Multifamily Note (including any Amended and Restated Note, Consolidated, Amended and
Restated Note, or Extended and Restated Note) executed by Borrower in favor of Lender and dated as of the date of this Loan Agreement, including all schedules, riders, allonges and addenda, as such Multifamily Note may be amended, modified and/or
restated from time to time. 
 “Notice” or “Notices” means all notices, demands and other
communication required under the Loan Documents, provided in accordance with the requirements of Section 11.03. 

“O&M Program” is defined in Section 6.12(c) and consists of the following: an operations and maintenance plan
for asbestos. 
 “Person” means any natural person, sole proprietorship, corporation, general partnership,
limited partnership, limited liability company, limited liability partnership, limited liability limited partnership, joint venture, association, joint stock company, bank, trust, estate, unincorporated organization, any federal, state, county or
municipal government (or any agency or political subdivision thereof), endowment fund or any other form of entity. 

“Personalty” means all of the following: 

 

	 	(i)	 Accounts (including deposit accounts) of Borrower related to the Mortgaged Property. 

 

	 	(ii)	 Equipment and inventory owned by Borrower, which are used now or in the future in connection with the ownership, management or operation of the Land
or Improvements or are located on the Land or Improvements, including furniture, furnishings, machinery, building materials, goods, supplies, tools, books, records (whether in written or electronic form) and computer equipment (hardware and
software). 

  

	 	(iii)	 Other tangible personal property owned by Borrower which is used now or in the future in connection with the ownership, management or operation of
the Land or Improvements or is located on the Land or in the Improvements, including ranges, stoves, microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers and other appliances (other than Fixtures).

  

	 	(iv)	 Any operating agreements relating to the Land or the Improvements. 

 

	 	(v)	 Any surveys, plans and specifications and contracts for architectural, engineering and construction services relating to the Land or the
Improvements. 

  

			
		  	Page 85

	 	(vi)	 All other intangible property, general intangibles and rights relating to the operation of, or used in connection with, the Land or the
Improvements, including all governmental permits relating to any activities on the Land and including subsidy or similar payments received from any sources, including a Governmental Authority. 

 

	 	(vii)	 Any rights of Borrower in or under any Letter of Credit. 

 “Pledge Agreement” is defined in Section 11.12(f)(viii). 

“Preapproved Intrafamily Transfer” is defined in Section 7.04. 

“Prepayment Premium Period” is defined in the Note. 

“Prior Lien” means a pre-existing mortgage, deed of trust or other Lien encumbering the Mortgaged Property. 

“Proceeding” means, whether voluntary or involuntary, any case, proceeding or other action against Borrower or any SPE
Equity Owner under any existing or future law of any jurisdiction relating to bankruptcy, insolvency, reorganization or relief of debtors. 
 “Proceeds” means the cash obtained by a draw on a Letter of Credit. 
 “Prohibited Activity or Condition” means each of the following: 
  

	 	(i)	 The presence, use, generation, release, treatment, processing, storage (including storage in above-ground and underground storage tanks), handling
or disposal of any Hazardous Materials on or under the Mortgaged Property. 

  

	 	(ii)	 The transportation of any Hazardous Materials to, from or across the Mortgaged Property. 

 

	 	(iii)	 Any occurrence or condition on the Mortgaged Property, which occurrence or condition is or may be in violation of Hazardous Materials Laws.

  

	 	(iv)	 Any violation of or noncompliance with the terms of any Environmental Permit with respect to the Mortgaged Property. 

 

	 	(v)	 Any violation or noncompliance with the terms of any O&M Program. 

However, the term “Prohibited Activity or Condition” expressly excludes lawful conditions permitted by an O&M Program or
the safe and lawful use and storage of quantities of (i) pre-packaged supplies, cleaning materials and petroleum products customarily used in the operation and maintenance of comparable multifamily properties, (ii) cleaning materials,
personal grooming items and other items sold in pre-packaged containers for consumer use and used by tenants and occupants of residential dwelling units in the Mortgaged Property, and (iii) petroleum products used in the operation and
maintenance of motor vehicles from time to time 

  

			
		  	Page 86

 
located on the Mortgaged Property’s parking areas, so long as all of the foregoing are used, stored, handled, transported and disposed of in compliance with Hazardous Materials Laws.

 “Property Jurisdiction” means the jurisdiction in which the Land is located. 

“Property Manager” means Bozzuto Management Company, a Maryland corporation. 

“Property Seller” is defined in Section 5.24. 

“Public Fund/REIT Securities” is defined in Section 7.03(c). 

“Rating Agencies” means Fitch, Inc., Moody’s Investors Service, Inc., or Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc., or any successor entity of the foregoing, or any other nationally recognized statistical rating organization. 
 “Release Instruments” is defined in Section 11.12(f)(x). 

“Remedial Work” is defined in Section 6.12(f). 

“Rent(s)” means all rents (whether from residential or non-residential space), revenues and other income of the Land or
the Improvements, parking fees, laundry and vending machine income and fees and charges for food, health care and other services provided at the Mortgaged Property, whether now due, past due or to become due, and deposits forfeited by tenants, and,
if Borrower is a cooperative housing corporation or association, maintenance fees, charges or assessments payable by shareholders or residents under proprietary leases or occupancy agreements, whether now due, past due or to become due. 

“Rent Schedule” means a written schedule for the Mortgaged Property showing the name of each tenant, and for each
tenant, the space occupied, the lease expiration date, the rent payable for the current month, the date through which rent has been paid, and any related information requested by Lender. 

“Repairs” means the repairs to be made to the Mortgaged Property, as described on the Repair Schedule of Work or as
otherwise required by Lender in accordance with this Loan Agreement. 
 “Replacement Cap Agreement” means any
replacement Cap Agreement provided to Lender pursuant to Section 4.07(c). The Replacement Cap Agreement must satisfy each of the following requirements: 
  

	 	(i)	 It must have an effective date not later than the day following the last day of the term of the Cap Agreement that preceded it, and may not expire
before the earlier of (A) the 5th anniversary of the effective date of such Replacement Cap Agreement or (B) the Maturity Date. 

  

	 	(ii)	 It must obligate the Cap Provider, which Cap Provider must be acceptable to Lender, to make monthly payments to Lender equal to the excess of
(A) the actual interest on a notional principal amount of the Indebtedness over (B) interest on that notional amount at a specified fixed cap rate. 

  

			
		  	Page 87

 “Replacement Cost” means the estimated replacement cost of the
Improvements, Fixtures, and Personalty (or, when used in reference to a property that is not the Mortgaged Property, all improvements, fixtures, and personalty located on such property), excluding any deduction for depreciation, all as determined
annually by Borrower using customary methodology and sources of information acceptable to Lender in Lender’s Discretion. Replacement Cost will not include the cost to reconstruct foundations or site improvements, such as driveways, parking
lots, sidewalks, and landscaping. 
 “Required DSCR” means, with respect to a Supplemental Loan, (i) if
the Senior Indebtedness bears interest at a fixed rate, 1.25:1, or (ii) if the Senior Indebtedness bears interest at an adjustable rate, 1.15:1. 
 “Required LTV” means 65%. 
 “Reserve Fund” means
each account established for Imposition Reserve Deposits, the Replacement Reserve Fund, the Repair Reserve Fund (if any), the External Cap Agreement Reserve Fund (if any), the Rental Achievement Fund (if any), and any other account established
pursuant to Article IV of this Loan Agreement. 
 “Restoration” is defined in Section 6.10(i). 

“Scheduled Debt Payments” is defined in Section 11.12(g)(i)(B). 

“Secondary Market Transaction” means (i) any sale or assignment of this Loan Agreement, the Note and the other Loan
Documents to one or more investors as a whole loan, (ii) a participation of the Loan to one or more investors, (iii) any deposit of this Loan Agreement, the Note and the other Loan Documents with a trust or other entity which may sell
certificates or other instruments to investors evidencing an ownership interest in the assets of such trust or other entity, or (iv) any other sale, assignment or transfer of the Loan or any interest in the Loan to one or more investors.

 “Securitization” means when the Note or any portion of the Note is assigned to a REMIC trust. 

“Security Instrument” means the mortgage, deed of trust, deed to secure debt or other similar security instrument
encumbering the Mortgaged Property and securing Borrower’s performance of its Loan obligations, including Borrower’s obligations under the Note and this Loan Agreement (including any Amended and Restated Security Instrument, Consolidation,
Modification and Extension Agreement, Extension and Modification Agreement or similar agreement or instrument amending and restating existing security instruments). 
 “Senior Indebtedness” means, for a Supplemental Loan, if any, the Indebtedness evidenced by each Senior Note and secured by each Senior Instrument for the benefit of each Senior Lender.

 “Senior Instrument” – Not applicable. 

“Senior Lender” means each holder of a Senior Note. 

  

			
		  	Page 88

 “Senior Loan Documents” means, for a Supplemental Loan, if any, all
documents relating to each loan evidenced by a Senior Note. 
 “Senior Note” means, for a Supplemental Loan, if
any, each Multifamily Note secured by a Senior Instrument. 
 “Servicing Arrangement” is defined in
Section 11.06(b). 
 “SFHA” is defined in Section 6.10(a)(iv). 

“Single Purpose Entity” is defined in Section 6.13(a). 

“Site Assessment” means an environmental engineering report for the Mortgaged Property prepared at Borrower’s
expense by an engineer engaged by Borrower, or by Lender on behalf of Borrower, and approved by Lender, and in a manner reasonably satisfactory to Lender, based upon an investigation relating to and making appropriate inquiries concerning the
existence of Hazardous Materials on or about the Mortgaged Property, and the past or present discharge, disposal, release or escape of any such substances, all consistent with ASTM Standard E1527-93 (or any successor thereto published by ASTM) and
good customary and commercial practice. 
 “SPE Equity Owner” is not applicable. Borrower will not be required
to maintain an SPE Equity Owner in its organizational structure during the term of the Loan and all references to SPE Equity Owner in this Loan Agreement and in the Note will be of no force or effect. 

“Successor Borrower” is defined in Section 11.12(h). 

“Supplemental Indebtedness” the Indebtedness evidenced by the Supplemental Note and secured by the Supplemental
Instrument for the benefit of Supplemental Lender, if any. 
 “Supplemental Instrument” means, for a
Supplemental Loan, if any, the Security Instrument executed to secure the Supplemental Note. 
 “Supplemental
Lender” means, for a Supplemental Loan, if any, the Approved Seller/Servicer named in the Supplemental Instrument and its successors and/or assigns. 
 “Supplemental Loan” means a loan that is subordinate to the Senior Indebtedness. 
 “Supplemental Loan Documents” means, for a Supplemental Loan, if any, all documents relating to the loan evidenced by the Supplemental Note. 

“Supplemental Mortgage Product” is defined in Section 11.11(a). 

“Supplemental Note” means, for a Supplemental Loan, if any, the Multifamily Note secured by the Supplemental Instrument.

 “Tax Code” means the Internal Revenue Code of the United States, 26 U.S.C. Section 1 et seq., as
amended from time to time. 

  

			
		  	Page 89

 “Taxes” means all taxes, assessments, vault rentals and other charges, if
any, whether general, special or otherwise, including all assessments for schools, public betterments and general or local improvements, which are levied, assessed or imposed by any public authority or quasi-public authority, and which, if not paid,
will become a Lien on the Land or the Improvements. 
 “Third Party Information” is defined in
Section 10.02(d). 
 “Total Insurable Value” means the sum of the Replacement Cost, business income/rental
value Insurance and the value of any business personal property. 
 “Transfer” means any of the following:

  

	 	(i)	 A sale, assignment, transfer or other disposition or divestment of any interest in Borrower or the Mortgaged Property (whether voluntary,
involuntary or by operation of law). 

  

	 	(ii)	 The granting, creating or attachment of a Lien, encumbrance or security interest (whether voluntary, involuntary or by operation of law).

  

	 	(iii)	 The issuance or other creation of an ownership interest in a legal entity, including a partnership interest, interest in a limited liability company
or corporate stock. 

  

	 	(iv)	 The withdrawal, retirement, removal or involuntary resignation of a partner in a partnership or a member or Manager in a limited liability company.

  

	 	(v)	 The merger, dissolution, liquidation, or consolidation of a legal entity or the reconstitution of one type of legal entity into another type of
legal entity. 

  

	 	(vi)	 A change of the Guarantor. 

 For purposes of defining the term “Transfer,” the term “partnership” means a general partnership or a limited partnership, and the term “partner” means a general partner or a
limited partner. 
 “Transfer” does not include any of the following: 

 

	 	(i)	 A conveyance of the Mortgaged Property at a judicial or non-judicial foreclosure sale under the Security Instrument. 

 

	 	(ii)	 The Mortgaged Property becoming part of a bankruptcy estate by operation of law under the Bankruptcy Code. 

 

	 	(iii)	 The filing or recording of a Lien against the Mortgaged Property for local taxes and/or assessments not then due and payable.

 “Transfer and Assumption Agreement” is defined in Section 11.12(f)(ix). 

“Transfer Fee” means a fee paid when the Transfer is completed. Unless otherwise specified, the Transfer Fee will be
equal to 1% of the outstanding principal balance of the Indebtedness as 

  

			
		  	Page 90

 
of the date of the Transfer. Notwithstanding anything set forth in Article VII to the contrary, the Transfer Fee will not exceed 1% of the outstanding principal balance of the Loan.

 “Transfer Review Fee” means a nonrefundable fee of $5,000 for Lender’s review of a proposed Transfer.

 “U.S. Treasury Obligations” means direct, non-callable and non-redeemable securities issued, or fully
insured as to payment, by the United States of America. 
 “UCC Collateral” is defined in Section 3.03.

 “Underwriter Group” is defined in Section 10.02(d). 

“Uniform Commercial Code” means the Uniform Commercial Code as promulgated in the applicable jurisdiction. 

“Windstorm Coverage” is defined in Section 6.10(a)(ix). 

 

	ARTICLE XIII	 INCORPORATION OF ATTACHED RIDERS. 

 The following Riders are attached to this Loan Agreement: 
  

			
	
Name of Rider

 
	  	Date Revised
	 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT

(CME AND PORTFOLIO) - REPLACEMENT RESERVE FUND – IMMEDIATE DEPOSITS
  
	  	1-11-2012
	 RIDER TO MULTIFAMILY LOAN AND SECURITY
AGREEMENT
 (CME) - REPAIR RESERVE FUND

 
	  	1-11-2012
	 RIDER TO MULTIFMAILY LOAN AND SECURITY AGREEMENT

(CME AND PORTFOLIO) - TERMITE OR WOOD DAMAGING INSECT CONTROL

 
	  	9-1-2011
	 RIDER TO MULTIFAMILY LOAN AND SECURITY
AGREEMENT
 (CME) - ADDITIONAL PROVISIONS FOR LOANS EQUAL TO OR GREATER THAN $25,000,000

 
	  	1-15-2013
	 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT

(CME AND PORTFOLIO) - MONTH TO MONTH LEASES

 
	  	1-11-2012

  

			
		  	Page 91

	ARTICLE XIV	INCORPORATION OF ATTACHED EXHIBITS. 

 The following Exhibits, if marked with an “X” in the space provided, are attached to this Loan Agreement: 
  

							
	X  	    	Exhibit A	    	Description of the Land (required)	  	    
		    		    		  	
	X  	    	Exhibit B	    	Modifications to Multifamily Loan and Security Agreement	  	    
		    		    		  	
	X  	    	Exhibit C	    	Repair Schedule of Work	  	    
		    		    		  	
	X  	    	Exhibit D	    	Repair Disbursement Request	  	    
		    		    		  	
	X  	    	Exhibit E	    	Work Commenced at Mortgaged Property	  	    
		    		    		  	
	X  	    	Exhibit F	    	Capital Replacements (required)	  	    
		    		    		  	
	 	    	Exhibit G	    	Description of Ground Lease	  	    
		    		    		  	
	X  	    	Exhibit H	    	Organizational Chart of Borrower as of the Closing Date (required)	  	    
		    		    		  	
	X  	    	Exhibit I	    	Designated Entities for Transfers and Guarantor(s) (required)	  	    

 REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; 

SIGNATURES ON FOLLOWING PAGES 

  

			
		  	Page 92

 SIGNATURE PAGE OF BORROWER 

TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 
  

											
	BORROWER:	 	 KBS LEGACY PARTNERS CRYSTAL 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/ W. Dean
Henry                    
	Name:	 	W. Dean Henry
	Title:	 	Chief Executive Officer

  
 SIGNATURES CONTINUE ON
FOLLOWING PAGE 

  

			
		  	Page 93

 SIGNATURE PAGE OF LENDER 

TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 
  

									
	LENDER:	 		 	CBRE CAPITAL MARKETS, INC.,
		 		 	a Texas corporation
				
		 		 	By: /s/ Jeffrey W.
Hurley                    	 	
		 		 	Name: Jeffrey W. Hurley	 	
		 		 	Title:   Vice President	 	

  

			
		  	Page 94

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

(CME AND PORTFOLIO) 
 REPLACEMENT RESERVE FUND – IMMEDIATE DEPOSITS 
 (Revised 1-11-2012)

 The following changes are made to the Loan Agreement which precedes this Rider: 

 

	A.	Section 4.04 is deleted and replaced with the following: 

  

	 	4.04	Replacement Reserve Fund. 

  

	 	(a)	 Deposits to Replacement Reserve Fund. On the Closing Date, the parties will establish the Replacement Reserve Fund and Borrower will pay the
Initial Deposit to Lender for deposit into the Replacement Reserve Fund. Commencing on the date the first installment of principal and/or interest is due under the Note and continuing on the same day of each successive month until the Loan is paid
in full, Borrower will pay the Monthly Deposit to Lender for deposit into the Replacement Reserve Fund, together with its regular monthly payments of principal and/or interest as required by the Note. A transfer of funds into the Replacement Reserve
Fund from the Repair Reserve Fund, pursuant to the terms of Section 4.03(e), if applicable, will not alter or reduce the amount of any deposits to the Replacement Reserve Fund. 

 

	 	(b)	 Fees Deducted From Replacement Reserve Fund. Lender will be entitled to deduct from the Replacement Reserve Fund (i) the Investment Fee
for establishing the Replacement Reserve Fund and (ii) the Inspection Fee for any inspection required pursuant to this Section 4.04. If Lender, in its discretion, retains a professional inspection engineer or other qualified third party to
inspect any Capital Replacements pursuant to the terms of Section 6.06, Lender also will be entitled to deduct from the Replacement Reserve Fund an amount sufficient to pay all reasonable fees and expenses charged by such third party inspector.

  

	 	(c)	 Adjustments to Replacement Reserve Fund. Lender reserves the right to adjust the amount of the Monthly Deposit based on Lender’s
assessment of the physical condition of the Mortgaged Property. Unless the Loan has an initial term of greater than 120 months, Lender will not make such an adjustment prior to the date that is 120 months after the first installment due
date, nor more frequently than every 10 years thereafter during the term of the Loan. Upon Notice from Lender or Loan Servicer, Borrower will begin paying the Revised Monthly Deposit on the first monthly payment date that is at least
30 days after the date of Lender’s or Loan Servicer’s Notice. If Lender or Loan Servicer does not provide Borrower with Notice of a Revised Monthly Deposit, Borrower will continue to pay the Monthly Deposit or the Revised Monthly
Deposit then in effect. 

  

			
		  	Page 95

	 	(d)	 Insufficient Amount in Replacement Reserve Fund. If Borrower requests disbursement from the Replacement Reserve Fund for a Capital
Replacement in accordance with this Loan Agreement in an amount which exceeds the amount on deposit in the Replacement Reserve Fund, Lender will disburse to Borrower only the amount on deposit in the Replacement Reserve Fund. Borrower will pay all
additional amounts required in connection with any such Capital Replacement from Borrower’s own funds. 

  

	 	(e)	 INTENTIONALLY OMITTED. 

  

	 	(f)	 INTENTIONALLY OMITTED. 

  

	 	(g)	 Disbursements from Replacement Reserve Fund. 

 

	 	(i)	 Requests for Disbursement. Lender will disburse funds from the Replacement Reserve Fund as follows: 

 

	 	(A)	 Borrower’s Request. If Borrower determines, at any time or from time to time, that a Capital Replacement is necessary or desirable,
Borrower will perform such Capital Replacement and request from Lender, in writing, reimbursement for such Capital Replacement. Borrower’s request for reimbursement will include (1) a detailed description of the Capital Replacement
performed, together with evidence, satisfactory to Lender, that the cost of such Capital Replacement has been paid, and (2) if required by Lender, lien waivers from each contractor and material supplier supplying labor or materials for such
Capital Replacement. 

  

	 	(B)	 Lender’s Request. If Lender reasonably determines at any time or from time to time, that a Capital Replacement is necessary for the
proper maintenance of the Mortgaged Property, it will so notify Borrower, in writing, requesting that Borrower obtain and submit to Lender bids for all labor and materials required in connection with such Capital Replacement. Borrower will submit
such bids and a time schedule for completing each Capital Replacement to Lender within 30 days after Borrower’s receipt of Lender’s Notice. Borrower will perform such Capital Replacement and request from Lender, in writing,
reimbursement for such Capital Replacement. Borrower’s request for reimbursement will include (1) a detailed description of the Capital Replacement performed, together with evidence, satisfactory to Lender, that the cost of such Capital
Replacement has been paid, and (2) if required by Lender, 

  

			
		  	Page 96

	 	 
lien waivers from each contractor and material supplier supplying labor or materials for such Capital Replacement. 

 

	 	(ii)	 Conditions Precedent. Disbursement from the Replacement Reserve Fund will be made no more frequently than once every Replacement Reserve
Disbursement Period and, except for the final disbursement, no disbursement will be made in an amount less than the Minimum Replacement Disbursement Request Amount. Disbursements will be made only if the following conditions precedent have been
satisfied, as reasonably determined by Lender in Lender’s Discretion: 

  

	 	(A)	 Each Capital Replacement has been performed and/or installed on the Mortgaged Property in a good and workmanlike manner with suitable materials (or
in the case of a partial disbursement, performed and/or installed on the Mortgaged Property to an acceptable stage), in accordance with good building practices and all applicable laws, ordinances, rules and regulations, building setback lines and
restrictions applicable to the Mortgaged Property, and has been paid for by Borrower as evidenced by copies of all applicable paid invoices or bills submitted to Lender by Borrower at the time Borrower requests disbursement from the Replacement
Reserve Fund. 

  

	 	(B)	 There is no condition, event or act that would constitute a default (with or without Notice and/or lapse of time). 

 

	 	(C)	 No Lien or claim based on furnishing labor or materials has been recorded, filed or asserted against the Mortgaged Property, unless Borrower has
properly provided a bond or other security against loss in accordance with applicable law. 

  

	 	(D)	 All licenses, permits and approvals of any Governmental Authority required for the Capital Replacement as completed to the applicable stage have
been obtained and submitted to Lender upon Lender’s request. 

  

	 	(h)	 Right to Complete Capital Replacements. If Borrower abandons or fails to proceed diligently with any Capital Replacement in a timely fashion
or an Event of Default occurs and continues under this Loan Agreement for 30 days after Notice of such failure by Lender to Borrower, Lender will have the right (but not the obligation) to enter upon the Mortgaged Property and take over and
cause the completion of such Capital Replacement. However, no such Notice or cure period will apply in the case of such failure which could, in Lender’s sole and absolute judgment,

  

			
		  	Page 97

	 	 
absent immediate exercise by Lender of a right or remedy under this Loan Agreement, result in harm to Lender, tenants or third parties or impairment of the security given under this Loan
Agreement, the Security Instrument or any other Loan Document. Any contracts entered into or indebtedness incurred upon the exercise of such right may be in the name of Borrower, and Lender is irrevocably appointed the attorney in fact for Borrower,
such appointment being coupled with an interest, to enter into such contracts, incur such obligations, enforce any contracts or agreements made by or on behalf of Borrower (including the prosecution and defense of all actions and proceedings in
connection with the Capital Replacement and the payment, settlement or compromise of all bills and claims for materials and work performed in connection with the Capital Replacement) and do any and all things necessary or proper to complete any
Capital Replacement, including signing Borrower’s name to any contracts and documents as may be deemed necessary by Lender. In no event will Lender be required to expend its own funds to complete any Capital Replacement, but Lender may, in
Lender’s Discretion, advance such funds. Any funds advanced will be added to the Indebtedness, secured by the Security Instrument and payable to Lender by Borrower in accordance with the provisions of the Note, this Loan Agreement, the Security
Instrument and any other Loan Document pertaining to the protection of Lender’s security and advances made by Lender. 

  

	 	(i)	 Completion of Capital Replacements. Lender’s disbursement of monies from the Replacement Reserve Fund or other acknowledgment of
completion of any Capital Replacement in a manner satisfactory to Lender in Lender’s Discretion will not be deemed a certification by Lender that the Capital Replacement has been completed in accordance with applicable building, zoning or other
codes, ordinances, statutes, laws, regulations or requirements of any Governmental Authority. Borrower will at all times have the sole responsibility for ensuring that all Capital Replacements are completed in accordance with all such requirements
of any Governmental Authority. 

  

	B.	The following definitions are added to Article XII: 

  

	 	“Initial Deposit” means $-0-. 

  

	 	“Minimum Replacement Disbursement Request Amount” means $2,500.00. 

 

	 	“Monthly Deposit” means $12,612.00. 

  

	 	 “Replacement Reserve Deposit” means the Initial Deposit, the Monthly Deposit and/or the Revised Monthly Deposit, as appropriate.

  

			
		  	Page 98

	 	 “Replacement Reserve Disbursement Period” means the interval between disbursements from the Replacement Reserve Fund, which
interval will be no shorter than once a month. 

  

	 	 “Replacement Reserve Fund” means the account established pursuant to this Loan Agreement to defray the costs of Capital
Replacements. 

  

	 	 “Revised Monthly Deposit” means the adjusted amount per month that Lender determines Borrower must deposit in the Replacement
Reserve Fund following any adjustment determination by Lender pursuant to Section 4.04(c). 

  
 [END OF RIDER] 

  

			
		  	Page 99

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

(CME) 

REPAIR RESERVE FUND 
 (Revised 1-11-2012) 
 The following changes are made to the Loan Agreement which precedes
this Rider: 
  

	A.	Section 4.03 is deleted and replaced with the following: 

  

	 	4.03	Repair Reserve Fund. 

  

	 	(a)	 Deposits to Repair Reserve Fund. Lender and Borrower acknowledge that Borrower has established the Repair Reserve Fund by depositing the
Repair Reserve Deposit with Lender on the date of this Loan Agreement, and that Borrower must complete the Repairs required pursuant to Section 6.14. 

 

	 	(b)	 Fees Deducted From Repair Reserve Fund. Lender will be entitled to deduct from the Repair Reserve Fund each of the following fees:

  

	 	(i)	 The Investment Fee. 

  

	 	(ii)	 The Inspection Fee for any inspection required pursuant to this Section 4.03. 

 

	 	(iii)	 The Extension/Modification Fee for any extension of the Completion Date or expansion of the scope of Repairs that is requested by Borrower and
agreed to by Lender. 

  

	 	(iv)	 If Lender, in Lender’s Discretion, retains a professional inspection engineer or other qualified third party to inspect any Repairs pursuant to
the terms of Section 6.06, an amount sufficient to pay all reasonable fees and expenses charged by such third party inspector. 

  

	 	(c)	 Insufficient Amount in Repair Reserve Fund. If Lender determines, in Lender’s Discretion that the money in the Repair Reserve Fund is
insufficient to pay for the Repairs, Lender will provide Borrower with Notice of such insufficiency, and as soon as possible (but in no event later than 20 days after such Notice) Borrower will pay to Lender an amount, in cash, equal to such
deficiency, which Lender will deposit in the Repair Reserve Fund. 

  

			
		  	Page 100

	 	(d)	Disbursements of Repair Reserve Fund. 

  

	 	(i)	 Disbursement. From time to time, as construction and completion of the Repairs progresses, upon Borrower’s submission of a Repair
Disbursement Request in the form attached to this Loan Agreement as Exhibit D, and provided that no Event of Default has occurred and no condition exists which but for the passage of time or giving of Notice, or both, would constitute an
Event of Default, Lender will make disbursements from the Repair Reserve Fund for payment or reimbursement of the actual costs of the Repairs. In connection with each disbursement, Borrower will take each of the following actions:

  

	 	(A)	 Sign Borrower’s Repair Disbursement Request. 

 

	 	(B)	 Include with each Repair Disbursement Request a report setting out the progress of the Repairs and any other reports or information relating to the
construction of the Repairs that may be reasonably requested by Lender. 

  

	 	(C)	 Include with each Repair Disbursement Request copies of any applicable invoices and/or bills and appropriate lien waivers for the prior period for
which disbursement was made, executed by all contractors and suppliers supplying labor or materials for the Repairs. 

  

	 	(D)	 Include with each Repair Disbursement Request, a report prepared by the professional engineer employed by Lender as to the status of the Repairs,
unless Lender has waived this requirement in writing. 

  

	 	(E)	 Include with each Repair Disbursement Request, Borrower’s written representation and warranty that the Repairs as completed to the applicable
stage do not violate any laws, ordinances, rules or regulations, or building setback lines or restrictions, applicable to the Mortgaged Property. 

  

	 	 	 Except for the final Repair Disbursement Request, no Repair Disbursement Request may be for an amount less than the Minimum Repair Disbursement
Request Amount. 

  

	 	(ii)	 Conditions Precedent. Lender will not be obligated to make any disbursement from the Repair Reserve Fund to or for the benefit of Borrower
unless at the time of such Repair Disbursement Request all of the following conditions exist: 

  

			
		  	Page 101

	 	(A)	 There exists no condition, event or act that would constitute a default (with or without Notice and/or lapse of time) under this Loan Agreement or
any other Loan Document. 

  

	 	(B)	 Borrower is in full compliance with the provisions of this Loan Agreement, the other Loan Documents and any request or demand by Lender permitted by
this Loan Agreement. 

  

	 	(C)	 No lien or claim based on furnishing labor or materials has been recorded, filed or asserted against the Mortgaged Property, unless Borrower has
properly provided bond or other security against loss in accordance with applicable law. 

  

	 	(D)	 All licenses, permits, and approvals of any Governmental Authority required for the Repairs as completed to the applicable stage have been obtained
and submitted to Lender upon Lender’s request. 

  

	 	(iii)	 Reporting Requirements; Completion. Prior to receiving the final disbursement from the Repair Reserve Fund, Borrower will deliver to Lender,
in addition to the information required by Section 4.03(d)(i) above, all of the following: 

  

	 	(A)	 Contractor’s Certificate. If required by Lender, a certificate signed by each major contractor and supplier of materials, as reasonably
determined by Lender, engaged to provide labor or materials for the Repairs to the effect that such contractor or supplier has been paid in full for all work completed and that the portion of the Repairs provided by such contractor or supplier has
been fully completed in accordance with the plans and specifications (if any) provided to it by Borrower and that such portion of the Repairs is in compliance with all applicable building codes and other rules and regulations promulgated by any
applicable regulatory authority or Governmental Authority. 

  

	 	(B)	 Borrower’s Certificate. A certificate signed by Borrower to the effect that the Repairs have been fully paid for and that all money
disbursed pursuant to this Loan Agreement has been used for the Repairs and no claim exists against Borrower or against the Mortgaged Property out of which a lien based on furnishing labor or material exists or might ripen. Borrower may except from
the certificate described in the preceding sentence any claim(s) that Borrower intends to contest, provided that any such claim is 

  

			
		  	Page 102

	 	 
described in Borrower’s certificate and Borrower certifies to Lender that the money in the Repair Reserve Fund is sufficient to make payment of the full amount which might in any event be
payable in order to satisfy such claim(s). If required by Lender, Borrower also must certify to Lender that such portion of the Repairs is in compliance with all applicable building codes and zoning ordinances. 

 

	 	(C)	 Engineer’s Certificate. If required by Lender, a certificate signed by the professional engineer employed by Lender to the effect that
the Repairs have been completed in a good and workmanlike manner in compliance with the Repair Schedule of Work and all applicable building codes, zoning ordinances and other rules and regulations promulgated by applicable regulatory or Governmental
Authorities. 

  

	 	(D)	 Other Certificates. Any other certificates of approval, acceptance or compliance required by Lender from any Governmental Authority having
jurisdiction over the Mortgaged Property and the Repairs. 

  

	 	(iv)	 Inspection. Prior to and as a condition of the final disbursement of funds from the Repair Reserve Fund, Lender will inspect or will cause
the Repairs and Improvements to be inspected in accordance with the terms of Section 6.06(a), to determine whether all interior and exterior Repairs have been completed in a manner acceptable to Lender. 

 

	 	(v)	 Indirect and Excess Disbursements from Repair Reserve Fund. Lender, in its sole and absolute discretion, is authorized to hold, use and
disburse funds from the Repair Reserve Fund to pay any and all costs, charges and expenses whatsoever and howsoever incurred or required in connection with the construction and completion of the Repairs, or, if an Event of Default has occurred and
is continuing, in the payment or performance of any obligation of Borrower to Lender. If Lender, for purposes specified in this Section 4.03, elects to pay any portion of the money in the Repair Reserve Fund to parties other than Borrower, then
Lender may do so, at any time and from time to time, and the amount of advances to which Borrower will be entitled under this Loan Agreement will be correspondingly reduced. 

 

	 	(vi)	 Repair Schedule of Work. All disbursements from the Repair Reserve Fund will be limited to the costs of those items set forth on the Repair
Schedule of Work. Without the prior written consent of Lender, Borrower will not make any payments from the Repair 

  

			
		  	Page 103

	 	 
Reserve Fund other than for the costs of those items set forth on the Repair Schedule of Work or alter the Repair Schedule of Work. 

 

	 	(e)	 Termination of Repair Reserve Fund. The provisions of this Section 4.03 will cease to be effective upon the completion of the Repairs in
accordance with this Loan Agreement to Lender’s satisfaction, and the full disbursement by Lender of the Repair Reserve Fund. If there are funds remaining in the Repair Reserve Fund after the Repairs have been completed in accordance with this
Loan Agreement, and provided no Event of Default has occurred and is continuing under this Loan Agreement or under any of the other Loan Documents, and no condition exists which but for the passage of time or giving of Notice, or both, would
constitute an Event of Default, such funds remaining in the Repair Reserve Fund will be refunded by Lender to Borrower. 

  

	 	(f)	 Right to Complete Repairs. If Borrower abandons or fails to proceed diligently with the Repairs or otherwise or there exists an Event of
Default under this Loan Agreement, Lender will have the right (but not the obligation) to enter upon the Mortgaged Property and take over and cause the completion of the Repairs. Any contracts entered into or indebtedness incurred upon the exercise
of such right may be in the name of Borrower, and Lender is irrevocably appointed the attorney in fact of Borrower, such appointment being coupled with an interest, to enter into such contracts, incur such obligations, enforce any contracts or
agreements made by or on behalf of Borrower (including the prosecution and defense of all actions and proceedings in connection with the Repairs and the payment, settlement, or compromise of all claims for materials and work performed in connection
with the Repairs) and do any and all things necessary or proper to complete the Repairs including signing Borrower’s name to any contracts and documents as may be deemed necessary by Lender. In no event will Lender be required to expend its own
funds to complete the Repairs, but Lender may, in Lender’s sole and absolute discretion, advance such funds. Any funds advanced will be added to the Indebtedness, secured by the Security Instrument and payable to Lender by Borrower in
accordance with the provisions of the Loan Documents pertaining to the protection of Lender’s security and advances made by Lender. Borrower waives any and all claims it may have against Lender for materials used, work performed or resultant
damage to the Mortgaged Property. 

  

	 	(g)	 Completion of Repairs. Lender’s disbursement of monies in the Repair Reserve Fund or other acknowledgment of completion of any Repair in
a manner satisfactory to Lender will not be deemed a certification by Lender that the Repair has been completed in accordance with applicable building, zoning or other codes, ordinances, statutes, laws, regulations or requirements of any
Governmental Authority. Borrower will at all times 

  

			
		  	Page 104

	 	 
have the sole responsibility for insuring that all Repairs are completed in accordance with all such governmental requirements. 

 

	B.	 The following definitions are added to Article XII: 

 

	 	 “Extension/Modification Fee” means a fee charged by Lender in the amount not to exceed $3,000 for any extension of the Completion
Date or expansion of the scope of Repairs that is requested by Borrower and agreed to by Lender. 

  

	 	 “Minimum Repair Disbursement Request Amount” means $2,500.00. 

 

	 	 “Repair Disbursement Request” means Borrower’s written requests to Lender in the form attached as Exhibit D for
the disbursement of money from the Repair Reserve Fund pursuant to Article IV. 

  

	 	 “Repair Reserve Deposit” means $52,125.00. 

 

	 	 “Repair Reserve Disbursement Period” means the interval between disbursements from the Repair Reserve Fund, which interval will be
no shorter than once every month during the term of this Loan Agreement. 

  

	 	 “Repair Reserve Fund” means the account which may be established by this Loan Agreement into which the Repair Reserve Deposit is
deposited. 

  

	 	 “Repair Schedule of Work” means the Repair Schedule of Work attached as Exhibit C. 

[END OF RIDER] 

  

			
		  	Page 105

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

(CME AND PORTFOLIO) 
 TERMITE OR WOOD DAMAGING INSECT CONTROL 
 (Revised 9-1-2011)

 The following changes are made to the Loan Agreement which precedes this Rider: 

 

	A.	The following is added as a new subsection to Section 6.09: 

  

	 	(h)	 Termite or Wood Damaging Insect Control. Borrower will maintain a contract with a qualified service provider for control of termites
or other wood damaging insects at the Mortgaged Property for so long as the Indebtedness remains outstanding. 

  

[END OF RIDER] 

  

			
		  	Page 106

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

(CME) 

ADDITIONAL PROVISIONS FOR 
 LOANS EQUAL TO OR GREATER THAN $25,000,000 
 (Revised 1-15-2013)

 The following changes are made to the Loan Agreement which precedes this Rider: 

 

	A.	 The following is added as a new Section to Article XI: 

 

	 	11.16	 Splitting the Note. 

  

	 	(a)	 Lender has the right from time to time to sever the Note into two or more separate promissory notes in such denominations as Lender determines in
its sole discretion, which promissory notes may be included in separate sales or Securitizations undertaken by Lender. In conjunction with any such action, Lender may redefine the interest rate and amortization schedule; provided however, each of
the following will be true: 

  

	 	(i)	 If Lender redefines the interest rate, the weighted average of the interest rates contained in the severed promissory notes taken in the aggregate
will equal the Fixed Interest Rate (as defined in the Note). 

  

	 	(ii)	 If Lender redefines the amortization schedule, the amortization of the severed promissory notes taken in the aggregate will require no more
amortization to be paid under the Loan than as required under the Note at the time such action was taken by Lender and such redefined amortization will not result in a change in the amount of the monthly payment due under the Note.

  

	 	(b)	 Borrower will only be required to make one payment under such separate promissory notes. Subject to the foregoing, each severed promissory note, and
the Loan evidenced by each severed promissory note, will be upon all of the terms and provisions contained in this Loan Agreement and the Loan Documents which continue in full force and effect, except that Lender may allocate specific collateral
given for the Loan as security for performance of specific promissory notes, in each case with or without cross default provisions. 

  

	 	(c)	 Borrower, at Borrower’s expense, agrees to cooperate with all reasonable requests of Lender to accomplish the foregoing, including execution
and prompt delivery 

  

			
		  	Page 107

	 	 
to Lender of a severance agreement and such other documents as Lender requires in Lender’s Discretion. 

 

	 	(d)	 Borrower hereby appoints Lender its attorney-in-fact with full power of substitution (which appointment will be deemed to be coupled with an
interest and irrevocable until the Loan is paid in full and the Security Instrument is discharged of record, with Borrower hereby ratifying all that its said attorney may do by virtue of such power) to make and execute all documents necessary or
desirable to effect the severance set forth in (a) above; provided, however, Lender will not make or execute any such documents under such power until 10 Business Days after Lender has given Borrower Notice of Lender’s intent to
exercise its rights under such power. 

  

	 	(e)	 Borrower’s failure to deliver any of the documents requested by Lender under this Section for a period of 10 Business Days after Notice of
such request by Lender will, at Lender’s option, constitute an Event of Default under this Loan Agreement. 

  

	B.	Section 11.14 is deleted and replaced with the following: 

  

	 	11.14	 Cooperation with Rating Agencies and Investors. At the request of Lender and, to the extent not already required to be provided by Borrower
under this Loan Agreement, Borrower must use reasonable efforts to satisfy the market standards to which Lender customarily adheres or which may be reasonably required in the marketplace or by the Rating Agencies in connection with any Securities
secured by or evidencing ownership interests in the Note and this Loan Agreement, including all of the following: 

  

	 	(a)	 Borrower will provide financial and other information with respect to the Mortgaged Property, the Borrower and the Property Manager.

  

	 	(b)	Borrower will perform or permit or cause to be performed or permitted such site inspections, appraisals, market studies, environmental reviews and reports (Phase I
and, if appropriate, Phase II), engineering reports and other due diligence investigations of the Mortgaged Property, as may be requested by Lender in Lender’s Discretion or may reasonably be requested by the Rating Agencies or as may be
necessary or appropriate in connection with the Secondary Market Transaction. 

  

	 	(c)	 Borrower will make such representations and warranties as of the closing date of the Secondary Market Transaction with respect to the Mortgaged
Property, Borrower and the Loan Documents as are customarily provided in securitization transactions and as may be requested by Lender in Lender’s Discretion or may reasonably be requested by the Rating Agencies and consistent with the facts
covered by such representations and warranties as they exist on the date of this Loan Agreement, including the representations and warranties made in the Loan Documents, together,

  

			
		  	Page 108

	 	 
if customary, with appropriate verification of and/or consents to the Provided Information through letters of auditors or opinions of counsel of independent attorneys acceptable to Lender and to
the Rating Agencies. 

  

	 	(d)	Borrower, at Borrower’s expense, will cause its counsel to render opinions, which may be relied upon by Lender, the Rating Agencies and their respective counsel,
agents and representatives, as to nonconsolidation, fraudulent conveyance, and true sale or any other opinion customary in securitization transactions with respect to the Mortgaged Property and Borrower and its Affiliates, which counsel and opinions
must be satisfactory to Lender in Lender’s Discretion and be reasonably satisfactory to the Rating Agencies. 

  

	 	(e)	 Borrower will execute such amendments to the Loan Documents and organizational documents, establish and fund the Replacement Reserve Fund, if any,
and complete any Repairs, if any, as may be requested by Lender or by the Rating Agencies or otherwise to effect the Secondary Market Transaction; provided, however, that the Borrower will not be required to modify or amend any Loan Document if such
modification or amendment would (i) change the interest rate, the stated maturity or the amortization of principal set forth in the Note, or (ii) modify or amend any other material economic term of the Loan. 

 

	 	(f)	Borrower will pay all reasonable third party costs and expenses incurred by Lender in connection with Borrower’s complying with requests made under this Section.

  

	C.	The following definitions are added to Article XII: 

  

	 	“Provided Information” means the information provided by Borrower as required by Section 11.14 (a), (b) and (c). 

 

	 	“Securities” means rated single or multi-class securities. 

 [END OF RIDER] 

  

			
		  	Page 109

 RIDER TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 

(CME AND PORTFOLIO) 
 MONTH TO MONTH LEASES 
 (Revised 1-11-2012) 

The following changes are made to the Loan Agreement which precedes this Rider: 

 

	A.	Section 5.11 is deleted and replaced with the following: 

  

	 	5.11	 Term of Leases. Unless otherwise approved in writing by Lender, all Leases for residential dwelling units with respect to the Mortgaged
Property are on forms acceptable to Lender, are for initial terms of at least 6 months and not more than 2 years, and do not include options to purchase; provided, however, that up to 10% of all Leases may be for an initial term of less than 6
months, but not less than 1 month. 

  

	B.	Section 6.15(a) is deleted and replaced with the following: 

  

	 	(a)	 Borrower will, promptly upon Lender’s request, deliver to Lender an executed copy of each residential Lease then in effect. All Leases for
residential dwelling units will be on forms acceptable to Lender, will be for initial terms of at least 6 months and not more than 2 years, and will not include options to purchase; provided, however, that up to 10% of all Leases may be for an
initial term of less than 6 months, but not less than 1 month. 

 [END OF RIDER] 

  

			
		  	Page 110

 EXHIBIT A 
 DESCRIPTION OF THE LAND 
 BEING KNOWN AND DESIGNATED as
Section 3-R in a subdivision known as “WATERFORD” per consolidation plat thereof recorded in Plat Book 45 at Plat No. 105 among the Land Records of Frederick County, Maryland. 

TOGETHER WITH a non-exclusive 24’ Access Easement providing access over a portion of Section 1, Waterford to Waterford
Drive as shown on Plats recorded in Plat Book 38 at Plat No. 189, Plat Book 39 at Plat No. 70 and Plat Book 45 at Plat No. 105 and as set forth in a Joint Construction, Maintenance and Use Agreement dated October 22, 1990 and
recorded among the Land Records of Frederick County, Maryland in Liber No. 1676, folio 35 by and between Winchester Homes, Inc., and Frederick Partners. 

  

			
		  	Page A-1

 EXHIBIT B 
 MODIFICATIONS TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 
 The following
modifications are made to the text of the Agreement that precedes this Exhibit: 
 1.   Section 6.07(c)(ii) is
amended to read in its entirety as follows: 
  

	 	(ii)	 Upon Lender’s request in Lender’s sole and absolute discretion prior to a Securitization, and thereafter upon Lender’s request in
Lender’s Discretion, a statement that identifies all owners of any interest in Borrower and any Designated Entity for Transfers and the interest held by each (unless Borrower or any Designated Entity for Transfers is a publicly-traded entity in
which case such statement of ownership will not be required, and in the case of KBS Legacy Partners Apartment REIT, Inc., only shareholders that own 10% or more of the total issued
shares of the corporation will need to be identified in such a statement of ownership), and if Borrower or a Designated Entity for Transfers is a corporation then all officers and directors of Borrower and the Designated Entity for
Transfers, and if Borrower or a Designated Entity for Transfers is a limited liability company then all Managers who are not members, in each case within 10 days after such request. 

2.   Section 6.10, subsections (d) and (e), are amended to read in their entirety as follows: 

 

	 	(d)	 Policy Requirements. All policies will be in a form approved by Lender. All policies of Hazard Insurance will include a standard
non-contributing, non-reporting mortgagee clause in favor of, and in a form approved by, Lender. All policies of Insurance will contain a Lender’s Loss Payable Endorsement including
a provision that the policy remains in full force and effect as to the interests of the Lender for a period of 10 days after its expiration. All policies for general liability Insurance will contain a standard additional insured provision,
in favor of, and in a form approved by Lender. If any policy referred to in this Section 6.10 contains a coinsurance clause, such coinsurance clause will be offset by an agreed amount endorsement in an amount not less than the Replacement Cost.
All Insurance policies and renewals of Insurance policies required by this Section 6.10 will be for such periods as Lender may from time to time require. Unless required otherwise by state law, all policies of Hazard Insurance will provide that
the insurer will notify the named mortgagee in writing at least 10 days before the cancelation of the policy for nonpayment of the premium or nonrenewal and at least 30 days before cancelation for any other reason. 

 

	 	(e)	 Evidence of Insurance; Renewals. Borrower will deliver to Lender a legible copy of each Insurance policy (or duplicate original), and
Borrower will promptly deliver to Lender a copy of all renewal and other notices received by Borrower with respect to the policies. Borrower will ensure that the Mortgaged Property is continuously covered by the required Insurance policies and will
deliver to 

  

			
		  	Page B-1

	 	 
Lender evidence acceptable to Lender in Lender’s Discretion that each policy has been renewed at least
155 days prior to the expiration date of such Insurance policy. If the evidence of a renewal does not include a legible copy of the renewal policy (or duplicate
original), Borrower will deliver a legible copy of such renewal policy (or duplicate original) in a form satisfactory to Lender in Lender’s Discretion prior to the earlier of (i) 60 days after the expiration date of the original
policy, or (ii) the date of any Notice to Lender under Section 6.10(i). 

 3.
  Section 6.10(h) is amended to read in its entirety as follows: 
  

	 	(h)	Blanket Insurance; Master Program. Borrower may provide Insurance coverage described in this Section 6.10 under a blanket insurance policy or master program
which provides one “per occurrence” (per peril) limit of coverage as a shared limit for two or more properties (“Blanket Insurance Policy”) provided that each of the following conditions is satisfied:

  

	 	(i)	The Blanket Insurance Policy is acceptable to Lender in Lender’s Discretion. 

 

	 	(ii)	The coverages under the Blanket Insurance Policy for the “All Risks” policy required under Section 6.10(a)(i) will be at least equal to the
greater of: 

  

	 	(A)	The largest individual Total Insurable Value of any property covered by the Blanket Insurance Policy. 

 

	 	(B)	10% of the aggregate Total Insurable Value of all properties covered by the Blanket Insurance Policy $500,000,000.

  

	 	(iii)	 The coverages under the Blanket Insurance Policy for Windstorm Coverage will be at least equal to: 

 

	 	(A)	 40% of the aggregate Total Insurable Value for all properties covered by the Blanket Policy if the Mortgaged Property is located (1) in
Florida, or (2) within 50 miles of the coast of any East Coast or Gulf Coast state. 

  

	 	(B)	 If the Mortgaged Property is not located (1) in Florida, or (2) within 50 miles of the coast of any East Coast or Gulf Coast state, the
greater of: 

  

	 	(x)	 The largest individual Total Insurable Value of any property covered by the Blanket Insurance Policy. 

 

	 	(y)	 10% of the aggregate Total Insurable Value of all properties covered by the Blanket Insurance Policy
$500,000,000. 

  

			
		  	Page B-2

 4.    Section 7.03(c) is deleted and the following is inserted in
its place: 
  

	 	(c)	 Publicly-Held Fund or Real Estate Investment Trust.    If a Designated Entity for Transfers is a publicly-held fund or
real estate investment trust (“Public Entity”), any of the Transfers set forth in (i) through (ii) provided that the applicable conditions are satisfied. 

 

	 	(i)	 The public issuance of preferred or common stock, convertible debt, equity or other similar securities (“Public Fund/REIT
Securities”) and the subsequent Transfer of such Public Fund/REIT Securities under the conditions set forth in (A) and (B). 

  

	 	(A)	 If any holder of Public Fund/REIT Securities acquires an ownership percentage of 10% or more (“10% Transfer”), the Borrower
provides Lender with Notice of the 10% Transfer within 30 days after the Public Entity receives written notice of the 10% Transfer along with a copy of the Securities and Exchange Commission Form 4, if applicable. 

 

	 	(B)	 If any holder of Public Fund/REIT Securities would acquire an ownership percentage of the Public Entity that would give it the right to appoint a
majority of the Board of Directors, the Borrower must obtain the consent of Lender prior to the Transfer. 

  

	 	(ii)	 The merger or consolidation of the Public Entity with any Person, the sale or other Transfer of all of the Public Entity’s assets to another
Person or the Transfer of interests in the Public Entity by operation of law to another Person. 

  

	 	(A)	 If the Public Entity is the Guarantor, the Borrower must remain Controlled directly or indirectly by the Guarantor (or any successor to Guarantor).

  

	 	(B)	 The Guarantor (or any successor entity) continues to meet the Minimum Net Worth Requirements as set forth in the Guaranty and assumes in writing all
of the Guarantor’s obligations. 

 5.    Section 9.01 is amended by adding the
following subsection (s): 
  

	 	(s)	 Borrower fails to deliver Notice of the 10% Transfer as required by Section 7.03(c) of this Loan Agreement and such failure continues for a
period of 30 days after Notice of such failure by Lender to Borrower; provided, however, notwithstanding anything to the contrary contained in this Loan Agreement or in any of the other Loan Documents, the failure to deliver Notice of the 10%
Transfer will not subject Borrower to personal liability pursuant to Section 9(c) of the Note. 

  

			
		  	Page B-3

 6.   Section 11.03 is amended by adding the following subsection (d):

  

	 	(d)	 Lender shall endeavor to give the individuals or entities listed below courtesy copies of any Notice given to Borrower or any Guarantor by Lender,
at the addresses set forth below; provided, however, that failure to provide such courtesy copies of Notices shall not affect the validity or sufficiency of any Notice to Borrower or any Guarantor, shall not affect Lender’s rights and remedies
hereunder or under any other Loan Documents and shall not subject Lender to any claims by or liability to Borrower, any guarantor or any other individual or entity. It is acknowledged and agreed that no individual or entity listed below is a
third-party beneficiary of any of the Loan Documents. 

 c/o KBS Realty Advisors LLC

 620 Newport Center Drive, Suite 1300 

Newport Beach, California 92660 
 Attention:   Jim Chiboucas and David Snyder 

and 
 Schultz & Wright, LLP 
 545 Middlefield Road, Suite 160

 Menlo Park, California 94025 
 Attention:   Steven J. Schultz/Thomas I. Johnston 
 7.
  Subparagraph (xv) in the definition of “Mortgaged Property” in Article XII is amended to read in its entirety as follows: 
  

	 	(xv)	 All names under or by which any of the Mortgaged Property may be operated or known, and all trademarks, trade names and goodwill relating to any of
the Mortgaged Property, except for the names “Legacy” and “KBS” or any variations thereof. 
	 

  

			
		  	Page B-4

 EXHIBIT C 
 REPAIR SCHEDULE OF WORK 
  

							
	
PRIORITY REPAIR
  
	  	 ESTIMATED  

COST
  
	  	 INFLATION  

FACTOR
  
	  	
TOTAL
  

	   Install Missing Rails

 
	  	$1,000	  	125%	  	$1,250.00
	   Install Ramp to Swimming Pool

 
	  	$7,500	  	125%	  	$9,375.00
	   Install Compliant Ramp to Tennis Court

 
	  	$7,500	  	125%	  	$9,375.00
	   Relocate Ramp to Community Building Entrance

 
	  	$10,000	  	125%	  	$12,500.00
	   Install Carbon Monoxide Alarms in each Unit

 
	  	$15,700	  	125%	  	$19,625.00
	
TOTAL REPAIR RESERVE DEPOSIT
  
	  	 	  	 	  	 $52,125.00
  

  

			
		  	Page C-1

 EXHIBIT D 
 REPAIR DISBURSEMENT REQUEST 
 The undersigned hereby requests
from                                        
 (“Lender”) the disbursement of funds in the amount of $                 (“Disbursement Request”) from the Repair Reserve Fund
established pursuant to the Multifamily Loan and Security Agreement dated May 8, 2013 by and between Lender and the undersigned ( “Loan Agreement”) to pay for repairs to the multifamily apartment project known as Crystal Park at
Waterford and located in Frederick, Maryland. 
 The undersigned hereby represents and warrants to Lender that the following
information and certifications provided in connection with this Disbursement Request are true and correct as of the date hereof: 
  

	1.	Purpose for which disbursement is requested: 

  

	        	                           
                                         
                                         
                                         
                                         
          

  

	2.	 To whom the disbursement will be made (may be the undersigned in the case of reimbursement for advances and payments made or cost incurred for work
done by the undersigned):
                                         
                                         
               

  

	3.	Estimated costs of completing the uncompleted Repairs as of the date of this Disbursement 

	  	Request:  
                                         
                                         
                                         
                                         
     

  

	4.	The undersigned certifies that each of the following is true: 

  

	 	(a)	 The disbursement requested pursuant to this Disbursement Request will be used solely to pay a cost or costs allowable under the Loan Agreement.

  

	 	(b)	 None of the items for which disbursement is requested pursuant to this Disbursement Request has formed the basis for any disbursement previously
made from the Repair Reserve Fund. 

  

	 	(c)	 All labor and materials for which disbursements have been requested have been incorporated into the Improvements or suitably stored upon the
Mortgaged Property in accordance with reasonable and standard building practices, the Loan Agreement and all applicable laws, ordinances, rules and regulations of any governmental authority having jurisdiction over the Mortgaged Property.

  

	 	(d)	 The materials, supplies and equipment furnished or installed for the Repairs are not subject to any Lien or security interest or that the funds to
be disbursed pursuant to this Disbursement Request are to be used to satisfy any such Lien or security interest. 

  

			
		  	Page D-1

	5.	 All capitalized terms used in this Disbursement Request without definition will have the meanings ascribed to them in the Loan Agreement.

 IN WITNESS WHEREOF, the undersigned has executed this Disbursement Request as of the day and date first
above written. 
  

							
		 		 		  	BORROWER:
				
	Date:	 	                             
                                         
  	 		  	  

				
		 		 		  	  

  

			
		  	Page D-2

 EXHIBIT E 
 WORK COMMENCED AT MORTGAGED PROPERTY 
 NONE 

  

			
		  	Page E-1

 EXHIBIT F 
 CAPITAL REPLACEMENTS 
  

	 	—	 	 Carpet/vinyl flooring 

  

	 	—	 	 Window treatments 

  

	 	—	 	 Roofs 

  

	 	—	 	 Furnaces/boilers 

  

	 	—	 	 Air conditioners 

  

	 	—	 	 Ovens/ranges 

  

	 	—	 	 Refrigerators 

  

	 	—	 	 Dishwashers 

  

	 	—	 	 Water heaters 

  

	 	—	 	 Garbage disposals 

 The
following items may also be funded from the Replacement Reserve Fund: 
  

	 	—	 	 Seal coat & striping 

  

	 	—	 	 Asphalt repair 

  

	 	—	 	 Pedestrian paving 

  

	 	—	 	 Pool/spa plaster/lining 

  

	 	—	 	 Washers and dryers 

  

	 	—	 	 Exterior walls 

  

			
		  	Page F-1

 EXHIBIT G 
 DESCRIPTION OF GROUND LEASE 
 N/A 

  

			
		  	Page G-1

 EXHIBIT H 
 ORGANIZATIONAL CHART OF BORROWER AS OF THE CLOSING DATE 
  

 

  

			
		  	Page H-1

 EXHIBIT I 
 DESIGNATED ENTITIES FOR TRANSFERS AND GUARANTOR(S) 
 Designated Entities for
Transfers 
 KBS Legacy Partners Properties LLC 
 KBS Legacy Partners Limited Partnership 
 KBS Legacy Partners Holdings LLC 

KBS Legacy Partners Apartment REIT, Inc. 
  

Guarantor(s) 
 KBS Legacy Partners
Properties LLC 

  

			
		  	Page I-1EX-10.73

 Exhibit 10.73 
 Freddie Mac Loan No. 708083366 
 Property Name: Crystal Park at Waterford

 MULTIFAMILY NOTE 
 (CME) 
 MULTISTATE – FIXED RATE 

DEFEASANCE 

(Revised 2-2-2012) 
  

			
	US $29,380,000.00	 	Effective Date:   May 8, 2013

 FOR VALUE RECEIVED, KBS LEGACY PARTNERS CRYSTAL LLC, a Delaware limited liability company (together with
such party’s or parties’ successors and assigns, “Borrower”), jointly and severally (if more than one) promises to pay to the order of CBRE CAPITAL MARKETS, INC., a Texas corporation, the principal sum of $29,380,000.00,
with interest on the unpaid principal balance, as hereinafter provided. 
  

	1.	Defined Terms. 

  

	 	(a)	 As used in this Note: 

 “Base Recourse” means a portion of the Indebtedness equal to -0-% of the original principal balance of this Note. 

“Business Day” means any day other than a Saturday, a Sunday or any other day on which Lender or the
national banking associations are not open for business. 
 “Cut-off
Date” means the 12th Installment Due Date.

 “Defeasance Date” means the 2nd anniversary of the “startup date” of the last REMIC within
the meaning of Section 860G(a)(9) of the Tax Code which holds all or any portion of the Loan. 

“Default Rate” means an annual interest rate equal to 4 percentage points above the Fixed Interest
Rate. However, at no time will the Default Rate exceed the Maximum Interest Rate. 
 “Defeasance
Period” is the period beginning the day after the Defeasance Date until but not including the first day of the Window Period. The Defeasance Period only applies if this Note is assigned to a REMIC trust prior to the Cut-off Date.

 “Fixed Interest Rate” means the annual interest rate of 2.500%. 

 “Installment Due Date” means, for any monthly installment
of interest-only or principal and interest, the date on which such monthly installment is due and payable pursuant to Section 3 of this Note. The “First Installment Due Date” under this Note is July 1, 2013. 

“Lender” means the holder from time to time of this Note. 

“Loan” means the loan evidenced by this Note. 

“Loan Agreement” means the Multifamily Loan and Security Agreement entered into by and between Borrower
and Lender, effective as of the effective date of this Note, as amended, modified or supplemented from time to time. 
 “Lockout Period” means the period beginning on the day that this Note is assigned to a REMIC trust until and including the Defeasance Date. The Lockout Period only applies if this Note is
assigned to a REMIC trust prior to the Cut-off Date. 
 “Maturity Date” means the earlier of
(i) June 1, 2018 (“Scheduled Maturity Date”), or (ii) the date on which the unpaid principal balance of this Note becomes due and payable by acceleration or otherwise pursuant to the Loan Documents or the exercise by
Lender of any right or remedy under any Loan Document; provided, however, that if the unpaid principal balance of this Note becomes due and payable by acceleration but such acceleration is rendered null and void and of no further force and effect by
operation of law or agreement by Lender, such acceleration will have no effect on the Maturity Date. 

“Maximum Interest Rate” means the rate of interest which results in the maximum amount of interest
allowed by applicable law. 
 “Prepayment Premium Period” means the period during which, if a
prepayment of principal occurs, a prepayment premium will be payable by Borrower to Lender. The Prepayment Premium Period is the period from and including the date of this Note until but not including (i) the day that this Note is assigned to a
REMIC trust, if this Note is assigned to a REMIC trust prior to the Cut-off Date, or (ii) the first day of the Window Period, if this Note is not assigned to a REMIC trust or if this Note is assigned to a REMIC trust on or after the Cut-off
Date. 
 “Security Instrument” means the multifamily mortgage, deed to secure debt or deed of
trust effective as of the effective date of this Note, from Borrower to or for the benefit of Lender and securing this Note, as amended, modified or supplemented from time to time. 

“Window Period” means the 3 consecutive calendar month period prior to the Scheduled Maturity Date.

  

			
		 	Page 2

 “Yield Maintenance Expiration Date” means March 1,
2018. 
 “Yield Maintenance Period” means the period from and including the date of this Note
until but not including (i) the day that this Note is assigned to a REMIC trust, if this Note is assigned to a REMIC trust prior to the Cut-off Date, or (ii) the Yield Maintenance Expiration Date, if this Note is not assigned to a REMIC
trust or if this Note is assigned to a REMIC trust on or after the Cut-off Date. 
  

	 	(b)	 Other capitalized terms used but not defined in this Note will have the meanings given to such terms in the Loan Agreement.

  

	2.	 Address for Payment. All payments due under this Note will be payable at P.O. Box 297480, Houston, Texas 77297, or such other place as
may be designated by Notice to Borrower from or on behalf of Lender. 

  

	3.	 Payments. 

  

	 	(a)	 Interest will accrue on the outstanding principal balance of this Note at the Fixed Interest Rate, subject to the provisions of Section 8 of
this Note. 

  

	 	(b)	 Interest under this Note will be computed, payable and allocated on the basis of an actual/360 interest calculation schedule (interest is payable
for the actual number of days in each month, and each month’s interest is calculated by multiplying the unpaid principal amount of this Note as of the first day of the month for which interest is being calculated by the Fixed Interest Rate,
dividing the product by 360, and multiplying the quotient by the number of days in the month for which interest is being calculated). The portion of the monthly installment of principal and interest under this Note attributable to principal and the
portion attributable to interest will vary based upon the number of days in the month for which such installment is paid. Each monthly payment of principal and interest will first be applied to pay in full interest due, and the balance of the
monthly installment payment paid by Borrower will be credited to principal. 

  

	 	(c)	 Unless disbursement of principal is made by Lender to Borrower on the first day of a calendar month, interest for the period beginning on the date
of disbursement and ending on and including the last day of such calendar month will be payable by Borrower simultaneously with the execution of this Note. If disbursement of principal is made by Lender to Borrower on the first day of a calendar
month, then no payment will be due from Borrower at the time of the execution of this Note. The Installment Due Date for the first monthly installment payment under Section 3(d) of interest-only or principal and interest, as applicable, will be
the First Installment Due Date set forth in Section 1(a) of this Note. Except as provided in this Section 3(c), Section 10 and in Section 11, accrued interest will be payable in arrears. 

  

			
		 	Page 3

	 	(d)	 Beginning on the First Installment Due Date, and continuing until and including the monthly installment due on the Maturity Date, principal and
accrued interest will be payable by Borrower in consecutive monthly installments due and payable on the first day of each calendar month. The amount of the monthly installment of principal and interest payable pursuant to this Section 3(d) on
an Installment Due Date will be $116,086.52. 

  

	 	(e)	 All remaining Indebtedness, including all principal and interest, will be due and payable by Borrower on the Maturity Date.

  

	 	(f)	 All payments under this Note must be made in immediately available U.S. funds. 

 

	 	(g)	 Any regularly scheduled monthly installment of interest-only or principal and interest payable pursuant to this Section 3 that is received by
Lender before the date it is due will be deemed to have been received on the due date for the purpose of calculating interest due. 

  

	 	(h)	 Any accrued interest remaining past due for 30 days or more, at Lender’s discretion, may be added to and become part of the unpaid principal
balance of this Note and any reference to “accrued interest” will refer to accrued interest which has not become part of the unpaid principal balance. Any amount added to principal pursuant to the Loan Documents will bear interest at the
applicable rate or rates specified in this Note and will be payable with such interest upon demand by Lender and absent such demand, as provided in this Note for the payment of principal and interest. 

 

	4.	 Application of Partial Payments. If at any time Lender receives, from Borrower or otherwise, any amount applicable to the Indebtedness which
is less than all amounts due and payable at such time, Lender may apply the amount received to amounts then due and payable in any manner and in any order determined by Lender, in Lender’s discretion. Borrower agrees that neither Lender’s
acceptance of a payment from Borrower in an amount that is less than all amounts then due and payable nor Lender’s application of such payment will constitute or be deemed to constitute either a waiver of the unpaid amounts or an accord and
satisfaction. 

  

	5.	 Security. The Indebtedness is secured by, among other things, the Security Instrument and reference is made to the Security Instrument and
Loan Agreement for other rights of Lender as to collateral for the Indebtedness. 

  

	6.	 Acceleration. If an Event of Default has occurred and is continuing, the entire unpaid principal balance, any accrued interest, any
prepayment premium payable under Section 10 and Section 11, and all other amounts payable under this Note and any other Loan Document, will at once become due and payable, at the option of Lender, without any prior Notice to Borrower
(except if notice is required by applicable law, then after such notice). Lender may exercise this option to accelerate regardless of any prior forbearance. For purposes of exercising such option, Lender will calculate the

  

			
		 	Page 4

	 	 
prepayment premium as if prepayment occurred on the date of acceleration. If prepayment occurs thereafter, Lender will recalculate the prepayment premium as of the actual prepayment date.

  

	7.	 Late Charge. 

  

	 	(a)	 If any monthly installment of interest or principal and interest or other amount payable under this Note or under the Loan Agreement or any other
Loan Document is not received in full by Lender within 10 days after the installment or other amount is due, counting from and including the date such installment or other amount is due (unless applicable law requires a longer period of time before
a late charge may be imposed, in which event such longer period will be substituted), Borrower must pay to Lender, immediately and without demand by Lender, a late charge equal to 5% of such installment or other amount due (unless applicable law
requires a lesser amount be charged, in which event such lesser amount will be substituted). If the Loan is not fully amortizing, the late charge will not be due on the final payment of principal owed on the Maturity Date if such payment is not
timely made. 

  

	 	(b)	 Borrower acknowledges that its failure to make timely payments will cause Lender to incur additional expenses in servicing and processing the Loan
and that it is extremely difficult and impractical to determine those additional expenses. Borrower agrees that the late charge payable pursuant to this Section represents a fair and reasonable estimate, taking into account all circumstances
existing on the date of this Note, of the additional expenses Lender will incur by reason of such late payment. The late charge is payable in addition to, and not in lieu of, any interest payable at the Default Rate pursuant to Section 8.

  

	8.	 Default Rate. 

  

	 	(a)	 So long as (i) any monthly installment under this Note remains past due for 30 days or more or (ii) any other Event of Default has
occurred and is continuing, then notwithstanding anything in Section 3 of this Note to the contrary, interest under this Note will accrue on the unpaid principal balance from the Installment Due Date of the first such unpaid monthly installment
or the occurrence of such other Event of Default, as applicable, at the Default Rate. 

  

	 	(b)	 From and after the Maturity Date, the unpaid principal balance will continue to bear interest at the Default Rate until and including the date on
which the entire principal balance is paid in full. 

  

	 	(c)	 Borrower acknowledges that (i) its failure to make timely payments will cause Lender to incur additional expenses in servicing and processing
the Loan, (ii) during the time that any monthly installment under this Note is delinquent for 30 days or more, Lender will incur additional costs and expenses arising from its loss of the use of the money due and from the adverse impact on
Lender’s ability 

  

			
		 	Page 5

	 	 
to meet its other obligations and to take advantage of other investment opportunities, and (iii) it is extremely difficult and impractical to determine those additional costs and expenses.
Borrower also acknowledges that, during the time that any monthly installment under this Note is delinquent for 30 days or more or any other Event of Default has occurred and is continuing, Lender’s risk of nonpayment of this Note will be
materially increased and Lender is entitled to be compensated for such increased risk. Borrower agrees that the increase in the rate of interest payable under this Note to the Default Rate represents a fair and reasonable estimate, taking into
account all circumstances existing on the date of this Note, of the additional costs and expenses Lender will incur by reason of the Borrower’s delinquent payment and the additional compensation Lender is entitled to receive for the increased
risks of nonpayment associated with a delinquent loan. 

  

	9.	 Limits on Personal Liability. 

  

	 	(a)	 Except as otherwise provided in this Section 9, Borrower will have no personal liability under this Note, the Loan Agreement or any other Loan
Document for the repayment of the Indebtedness or for the performance of or compliance with any other obligations of Borrower under the Loan Documents and Lender’s only recourse for the satisfaction of the Indebtedness and the performance of
such obligations will be Lender’s exercise of its rights and remedies with respect to the Mortgaged Property and to any other collateral held by Lender as security for the Indebtedness. This limitation on Borrower’s liability will not
limit or impair Lender’s enforcement of its rights against any Guarantor of the Indebtedness or any Guarantor of any other obligations of Borrower. 

 

	 	(b)	 Borrower will be personally liable to Lender for the amount of the Base Recourse, plus any other amounts for which Borrower has personal liability
under this Section 9. 

  

	 	(c)	 In addition to the Base Recourse, Borrower will be personally liable to Lender for the repayment of a further portion of the Indebtedness equal to
any loss or damage suffered by Lender as a result of the occurrence of any of the following events: 

  

	 	(i)	 Borrower fails to pay to Lender upon demand after an Event of Default all Rents to which Lender is entitled under Section 3 of the Security
Instrument and the amount of all security deposits collected by Borrower from tenants then in residence. However, Borrower will not be personally liable for any failure described in this Section 9(c)(i) if Borrower is unable to pay to Lender
all Rents and security deposits as required by the Security Instrument because of a valid order issued in a bankruptcy, receivership, or similar judicial proceeding. 

 

	 	(ii)	 Borrower fails to apply all Insurance proceeds and Condemnation proceeds as required by the Loan Agreement. However, Borrower will not

  

			
		 	Page 6

	 	 
be personally liable for any failure described in this Section 9(c)(ii) if Borrower is unable to apply Insurance or Condemnation proceeds as required by the Loan Agreement because of a valid
order issued in a bankruptcy, receivership, or similar judicial proceeding. 

  

	 	(iii)	 Either of the following occurs: 

  

	 	(A)	 Borrower fails to deliver the statements, schedules and reports required by Section 6.07 of the Loan Agreement and Lender exercises its right
to audit those statements, schedules and reports. 

  

	 	(B)	 If an Event of Default has occurred and is continuing, Borrower fails to deliver all books and records relating to the Mortgaged Property or its
operation in accordance with the provisions of Section 6.07 of the Loan Agreement. 

  

	 	(iv)	 Borrower fails to pay when due in accordance with the terms of the Loan Agreement the amount of any item below marked “Deferred”; provided
however, that if no item is marked “Deferred”, this Section 9(c)(iv) will be of no force or effect. 

  

			
	[Deferred]	  	Hazard Insurance premiums or other Insurance premiums
	[Collect]	  	Taxes or payments in lieu of taxes (PILOT)
	[Deferred]	  	water and sewer charges (that could become a lien on the Mortgaged Property)
	[N/A]	  	Ground Rents
	[Deferred]	  	assessments or other charges (that could become a lien on the Mortgaged Property)

  

	 	(v)	 Borrower engages in any willful act of material waste of the Mortgaged Property. 

 

	 	(vi)	 Borrower fails to comply with any provision of Section 6.13(a)(iii) through (xxvi) of the Loan Agreement or any SPE Equity Owner fails to
comply with any provision of Section 6.13(b)(iii) through (v) of the Loan Agreement (subject to possible full recourse liability as set forth in Section 9(f)(ii)). 

 

	 	(vii)	 Any of the following Transfers occurs: 

  

	 	(A)	 Any Person that is not an Affiliate creates a mechanic’s lien or other involuntary lien or encumbrance against the Mortgaged Property and
Borrower has not complied with the provisions of the Loan Agreement. 

  

			
		 	Page 7

	 	(B)	 A Transfer of property by devise, descent or operation of law occurs upon the death of a natural person and such Transfer does not meet the
requirements set forth in the Loan Agreement. 

  

	 	(C)	 Borrower grants an easement that does not meet the requirements set forth in the Loan Agreement. 

 

	 	(D)	 Borrower executes a Lease that does not meet the requirements set forth in the Loan Agreement. 

 

	 	(d)	 In addition to the Base Recourse, Borrower will be personally liable to Lender for all of the following: 

 

	 	(i)	 Borrower will be personally liable for the performance of and compliance with all of Borrower’s obligations under Sections 6.12 and
10.02(b) of the Loan Agreement (relating to environmental matters). 

  

	 	(ii)	 Borrower will be personally liable for the costs of any audit under Section 6.07 of the Loan Agreement. 

 

	 	(iii)	 Borrower will be personally liable for any costs and expenses incurred by Lender in connection with the collection of any amount for which Borrower
is personally liable under this Section 9, including Attorneys’ Fees and Costs and the costs of conducting any independent audit of Borrower’s books and records to determine the amount for which Borrower has personal liability.

  

	 	(e)	 All payments made by Borrower with respect to the Indebtedness and all amounts received by Lender from the enforcement of its rights under the Loan
Agreement and the other Loan Documents will be applied first to the portion of the Indebtedness for which Borrower has no personal liability. 

  

	 	(f)	 Notwithstanding the Base Recourse, Borrower will become personally liable to Lender for the repayment of all of the Indebtedness upon the occurrence
of any of the following Events of Default: 

  

	 	(i)	 Borrower fails to comply with Section 6.13(a)(i) or (ii) of the Loan Agreement or any SPE Equity Owner fails to comply with
Section 6.13(b)(i) or (ii) of the Loan Agreement. 

  

	 	(ii)	 Borrower fails to comply with any provision of Section 6.13(a)(iii) through (xxvi) of the Loan Agreement or any SPE Equity Owner fails to
comply with any provision of Section 6.13(b)(iii) through (v) of the Loan Agreement and a court of competent jurisdiction holds or determines that such failure or combination of failures is the basis, in whole or in part, for the
substantive consolidation of the assets and liabilities of Borrower or 

  

			
		 	Page 8

	 	 
any SPE Equity Owner with the assets and liabilities of a debtor pursuant to Title 11 of the Bankruptcy Code. 

 

	 	(iii)	 A Transfer that is an Event of Default under Section 7.02 of the Loan Agreement occurs other than a Transfer set forth in
Section 9(c)(vii) above (for which Borrower will have personal liability for Lender’s loss or damage); provided, however, that Borrower will not have any personal liability for a Transfer consisting solely of the involuntary removal or
involuntary withdrawal of a general partner in a limited partnership or a manager in a limited liability company. 

  

	 	(iv)	 There was fraud or written material misrepresentation by Borrower or any officer, director, partner, member or employee of Borrower in connection
with the application for or creation of the Indebtedness or there is fraud in connection with any request for any action or consent by Lender. 

  

	 	(v)	 Borrower or any SPE Equity Owner voluntarily files for bankruptcy protection under the Bankruptcy Code. 

 

	 	(vi)	 Borrower or any SPE Equity Owner voluntarily becomes subject to any reorganization, receivership, insolvency proceeding, or other similar proceeding
pursuant to any other federal or state law affecting debtor and creditor rights. 

  

	 	(vii)	 The Mortgaged Property or any part of the Mortgaged Property becomes an asset in a voluntary bankruptcy or becomes subject to any voluntary
reorganization, receivership, insolvency proceeding, or other similar voluntary proceeding pursuant to any other federal or state law affecting debtor and creditor rights. 

 

	 	(viii)	 An order of relief is entered against Borrower or any SPE Equity Owner pursuant to the Bankruptcy Code or other federal or state law affecting
debtor and creditor rights in any involuntary bankruptcy proceeding initiated or joined in by a Related Party. 

  

	 	(ix)	 An involuntary bankruptcy or other involuntary insolvency proceeding is commenced against Borrower or any SPE Equity Owner (by a party other than
Lender) but only if Borrower or such SPE Equity Owner has failed to use commercially reasonable efforts to dismiss such proceeding or has consented to such proceeding. “Commercially reasonable efforts” will not require any direct or
indirect interest holders in Borrower or any SPE Equity Owner to contribute or cause the contribution of additional capital to Borrower or any SPE Equity Owner. 

 

	 	(g)	 For purposes of Section 9(f) the term “Related Party” will include all of the following: 

  

			
		 	Page 9

	 	(i)	 Borrower, any Guarantor or any SPE Equity Owner. 

  

	 	(ii)	 Any Person that holds, directly or indirectly, any ownership interest (including any shareholder, member or partner) in Borrower, any Guarantor or
any SPE Equity Owner or any Person that has a right to manage Borrower, any Guarantor or any SPE Equity Owner. 

  

	 	(iii)	 Any Person in which Borrower, any Guarantor or any SPE Equity Owner has any ownership interest (direct or indirect) or right to manage.

  

	 	(iv)	 Any Person in which any partner, shareholder or member of Borrower, any Guarantor or any SPE Equity Owner has an ownership interest or right to
manage. 

  

	 	(v)	 Any Person in which any Person holding an interest in Borrower, any Guarantor or any SPE Equity Owner also has any ownership interest.

  

	 	(vi)	 Any creditor of Borrower that is related by blood, marriage or adoption to Borrower, any Guarantor or any SPE Equity Owner.

  

	 	(vii)	 Any creditor of Borrower that is related to any partner, shareholder or member of, or any other Person holding an interest in, Borrower, any
Guarantor or any SPE Equity Owner. 

  

	 	(h)	 If Borrower, any Guarantor, any SPE Equity Owner or any Related Party has solicited creditors to initiate or participate in any proceeding referred
to in Section 9(f), regardless of whether any of the creditors solicited actually initiates or participates in the proceeding, then such proceeding will be considered as having been initiated by a Related Party. 

 

	 	(i)	 To the extent that Borrower has personal liability under this Section 9, Lender may, to the fullest extent permitted by applicable law,
exercise its rights against Borrower personally without regard to whether Lender has exercised any rights against the Mortgaged Property or any other security, or pursued any rights against any Guarantor, or pursued any other rights available to
Lender under this Note, the Loan Agreement, any other Loan Document or applicable law. To the fullest extent permitted by applicable law, in any action to enforce Borrower’s personal liability under this Section 9, Borrower waives any
right to set off the value of the Mortgaged Property against such personal liability. 

  

			
		 	Page 10

	10.	 Voluntary and Involuntary Prepayments During the Prepayment Premium Period (Section Applies unless and until Loan is Assigned to REMIC Trust
Prior to the Cut-off Date). 

  

	 	(a)	 This Section 10 will apply unless and until this Note is assigned to a REMIC trust prior to the Cut-off Date. 

 

	 	(b)	 Any receipt by Lender of principal due under this Note prior to the Maturity Date, other than principal required to be paid in monthly installments
pursuant to Section 3, constitutes a prepayment of principal under this Note. Without limiting the foregoing, any application by Lender, prior to the Maturity Date, of any proceeds of collateral or other security to the repayment of any portion
of the unpaid principal balance of this Note constitutes a prepayment under this Note. 

  

	 	(c)	 During the Prepayment Premium Period, Borrower may voluntarily prepay all of the unpaid principal balance of this Note on an Installment Due Date so
long as Borrower designates the date for such prepayment in a Notice from Borrower to Lender given at least 30 days prior to the date of such prepayment. Unless Lender has previously notified Borrower of the expiration of the Prepayment Premium
Period, upon receipt of such Notice from Borrower, Lender will notify Borrower if the Note has been assigned to a REMIC trust prior to the Cut-off Date and the Prepayment Premium Period has expired. If an Installment Due Date (as defined in
Section 1(a)) falls on a day which is not a Business Day, then with respect to payments made under this Section 10 only, the term “Installment Due Date” will mean the Business Day immediately preceding the scheduled Installment
Due Date. 

  

	 	(d)	 Notwithstanding Section 10(c), Borrower may voluntarily prepay all of the unpaid principal balance of this Note on a Business Day other than an
Installment Due Date if Borrower provides Lender with the Notice set forth in Section 10(c) above and meets the other requirements set forth in this Section 10(d). Borrower acknowledges that Lender has agreed that Borrower may prepay
principal on a Business Day other than an Installment Due Date only because Lender will deem any prepayment received by Lender on any day other than an Installment Due Date to have been received on the Installment Due Date immediately following such
prepayment and Borrower will be responsible for all interest that would have been due if the prepayment had actually been made on the Installment Due Date immediately following such prepayment. 

 

	 	(e)	 Unless otherwise expressly provided in the Loan Documents, Borrower may not voluntarily prepay less than all of the unpaid principal balance of this
Note. In order to voluntarily prepay all of the principal of this Note, Borrower must pay to Lender, together with the amount of principal being prepaid, (i) all accrued and unpaid interest due under this Note, plus (ii) all other sums due
to Lender at the time of such prepayment, plus (iii) any prepayment premium calculated pursuant to Section 10(f). 

  

			
		 	Page 11

	 	(f)	 Except as provided in Section 10(g), a prepayment premium will be due and payable by Borrower in connection with any prepayment of principal
under this Note during the Prepayment Premium Period. The prepayment premium will be computed as follows: 

  

	 	(i)	 For any prepayment made during the Yield Maintenance Period, the prepayment premium will be whichever is the greater of subsections (A)
and (B) below: 

  

	 	(A)	 1.0% of the amount of principal being prepaid; or 

 

	 	(B)	 the product obtained by multiplying: 

  

	 	(1)	 the amount of principal being prepaid or accelerated, 

	 	    	 by 

	 	(2)	 the excess (if any) of the Monthly Note Rate over the 

	 	    	 Assumed Reinvestment Rate, 

	 	    	 by 

	 	(3)	 the Present Value Factor. 

 For purposes of Section 10(f)(i)(B), the following definitions will apply: 
 Monthly Note Rate: 1/12 of the Fixed Interest Rate, expressed as a decimal calculated to 5 digits. 
 Prepayment Date: in the case of a voluntary prepayment, the date on which the prepayment is made; in the case of the application by Lender of collateral or security to a portion of the principal
balance, the date of such application. 
 Assumed Reinvestment Rate: 1/12 of the yield rate expressed as
a decimal to 2 digits, as of the close of the trading session which is 5 Business Days before the Prepayment Date, found among the Daily Treasury Yield Curve Rates, commonly known as Constant Maturity Treasury (“CMT”) rates, with a
maturity equal to the remaining Yield Maintenance Period, as reported on the U.S. Department of the Treasury website. If no published CMT maturity matches the remaining Yield Maintenance Period, Lender will interpolate as a decimal to 2 digits the
yield rate between (a) the CMT with a maturity closest to, but shorter than, the remaining Yield Maintenance Period, and (b) the CMT with a maturity closest to, but longer than, the remaining Yield Maintenance Period, as follows:

  
 

 

  

			
		 	Page 12

 
			
	A =	  	 yield rate for the CMT with a maturity shorter than the remaining Yield Maintenance Period

	B =	  	 yield rate for the CMT with a maturity longer than the remaining Yield Maintenance Period

	C =	  	 number of months to maturity for the CMT maturity shorter than the remaining Yield Maintenance Period

	D =	  	 number of months to maturity for the CMT maturity longer than the remaining Yield Maintenance Period

	E =	  	 number of months remaining in the Yield Maintenance Period

 In the event the U.S. Department of the Treasury ceases publication of the CMT
rates, the Assumed Reinvestment Rate will equal the yield rate on the first U.S. Treasury security which is not callable or indexed to inflation and which matures after the expiration of the Yield Maintenance Period. 

The Assumed Reinvestment Rate may be a positive number, a negative number or zero. 

If the Assumed Reinvestment Rate is a positive number or a negative number, Lender will calculate the prepayment premium
using such positive number or negative number, as appropriate, as the Assumed Reinvestment Rate in Section 10(f)(i)(B)(2) and in the calculation of the Present Value Factor. 

If the Assumed Reinvestment Rate is zero, Lender will calculate the prepayment premium twice as set forth in
(I) and (II) below and will average the results to determine the actual prepayment premium. 
  

	 	(I)	 Lender will calculate the prepayment premium using an Assumed Reinvestment Rate of one basis point (+0.01%) in Section 10(f)(i)(B)(2) and in
the calculation of the Present Value Factor. 

  

	 	(II)	 Lender will calculate the prepayment premium using an Assumed Reinvestment Rate of negative one basis point (-0.01%) in Section 10(f)(i)(B)(2)
and in the calculation of the Present Value Factor. 

 Present Value Factor: the
factor that discounts to present value the costs resulting to Lender from the difference in interest rates during the months remaining in the Yield Maintenance Period, using the Assumed Reinvestment Rate as the discount rate, with monthly
compounding, expressed numerically as follows: 

  

			
		 	Page 13

  
 

 
 n = the number of months remaining in Yield Maintenance Period; provided,
however, if a prepayment occurs on an Installment Due Date, then the number of months remaining in the Yield Maintenance Period will be calculated beginning with the month in which such prepayment occurs and if such prepayment occurs on a Business
Day other than an Installment Due Date, then the number of months remaining in the Yield Maintenance Period will be calculated beginning with the month immediately following the date of such prepayment. 

ARR = Assumed Reinvestment Rate 
  

	 	(ii)	 For any prepayment made after the expiration of the Yield Maintenance Period but during the remainder of the Prepayment Premium Period, the
prepayment premium will be 1.0% of the amount of principal being prepaid. 

  

	 	(g)	 Notwithstanding any other provision of this Section 10, no prepayment premium will be payable with respect to (i) any prepayment made
during the Window Period, or (ii) any prepayment occurring as a result of the application of any Insurance proceeds or Condemnation award under the Loan Agreement. 

 

	 	(h)	 Unless Lender agrees otherwise in writing, a permitted or required prepayment of less than the unpaid principal balance of this Note will not extend
or postpone the due date of any subsequent monthly installments or change the amount of such installments. 

  

	 	(i)	 Borrower recognizes that any prepayment of any of the unpaid principal balance of this Note, whether voluntary or involuntary or resulting from an
Event of Default by Borrower, will result in Lender’s incurring loss, including reinvestment loss, additional expense and frustration or impairment of Lender’s ability to meet its commitments to third parties. Borrower agrees to pay to
Lender upon demand damages for the detriment caused by any prepayment, and agrees that it is extremely difficult and impractical to ascertain the extent of such damages. Borrower therefore acknowledges and agrees that the formula for calculating
prepayment premiums set forth in this Note represents a reasonable estimate of the damages Lender will incur because of a prepayment. Borrower further acknowledges that the prepayment premium provisions of this Note are a material part of the
consideration for the Loan, and that the terms of this Note are in other respects more favorable to Borrower as a result of the Borrower’s voluntary agreement to the prepayment premium provisions. 

  

			
		 	Page 14

	11.	 Voluntary and Involuntary Prepayments During the Lockout Period and During the Defeasance Period (Section Applies if Loan is Assigned to REMIC
Trust Prior to the Cut-off Date). 

  

	 	(a)	 This Section 11 will apply in the event this Note is assigned to a REMIC trust prior to the Cut-off Date. This Section 11 will be of no
effect if this Note is assigned to a REMIC trust on or after the Cut-off Date or if this Note is not assigned to a REMIC trust. 

  

	 	(b)	 Any receipt by Lender of principal due under this Note prior to the Maturity Date, other than principal required to be paid in monthly installments
pursuant to Section 3, constitutes a prepayment of principal under this Note. Without limiting the foregoing, any application by Lender, prior to the Maturity Date, of any proceeds of collateral or other security to the repayment of any portion
of the unpaid principal balance of this Note constitutes a prepayment under this Note. 

  

	 	(c)	 Borrower may not voluntarily prepay any portion of the principal balance of this Note during the Lockout Period or during the Defeasance Period;
provided, however, any prepayment occurring as a result of the application of any Insurance proceeds or Condemnation award under the Loan Agreement will be permitted during the Lockout Period and during the Defeasance Period. If any portion of the
principal balance of this Note is prepaid during the Lockout Period or during the Defeasance Period by reason of the application by Lender of any proceeds of collateral or other security to any portion of the unpaid principal balance of this Note or
following a determination that the prohibition on voluntary prepayments during the Lockout Period or during the Defeasance Period is in contravention of applicable law, then Borrower must also pay to Lender upon demand by Lender, a prepayment
premium equal to 5.0% of the amount of principal being prepaid. 

  

	 	(d)	 Notwithstanding any other provision of this Section 11, no prepayment premium will be payable with respect to (i) any prepayment made
during the Window Period, or (ii) any prepayment occurring as a result of the application of any Insurance proceeds or Condemnation award under the Loan Agreement. 

 

	 	(e)	 After the expiration of the Lockout Period and the Defeasance Period, Borrower may voluntarily prepay all of the unpaid principal balance of this
Note on an Installment Due Date so long as Borrower designates the date for such prepayment in a Notice from Borrower to Lender given at least 30 days prior to the date of such prepayment. If an Installment Due Date (as defined in Section 1(a))
falls on a day which is not a Business Day, then with respect to payments made under this Section 11 only, the term “Installment Due Date” will mean the Business Day immediately preceding the scheduled Installment Due Date.

  

	 	(f)	 Notwithstanding Section 11(e) above, following the end of the Lockout Period and the Defeasance Period, Borrower may voluntarily prepay all of
the unpaid 

  

			
		 	Page 15

	 	 
principal balance of this Note on a Business Day other than an Installment Due Date if Borrower provides Lender with the Notice set forth in Section 11(e) and meets the other requirements
set forth in this Section 11(f). Borrower acknowledges that Lender has agreed that Borrower may prepay principal on a Business Day other than an Installment Due Date only because Lender will deem any prepayment received by Lender on any day
other than an Installment Due Date to have been received on the Installment Due Date immediately following such prepayment and Borrower will be responsible for all interest that would have been due if the prepayment had actually been made on the
Installment Due Date immediately following such prepayment. 

  

	 	(g)	 Unless otherwise expressly provided in the Loan Documents, Borrower may not voluntarily prepay less than all of the unpaid principal balance of this
Note. In order to voluntarily prepay all of the principal of this Note, Borrower must also pay to Lender, together with the amount of principal being prepaid, (i) all accrued and unpaid interest due under this Note, plus (ii) all
other sums due to Lender at the time of such prepayment. 

  

	 	(h)	 Unless Lender agrees otherwise in writing, a permitted or required prepayment of less than the unpaid principal balance of this Note will not extend
or postpone the due date of any subsequent monthly installments or change the amount of such installments. 

  

	 	(i)	 Borrower recognizes that any prepayment of any of the unpaid principal balance of this Note, whether voluntary or involuntary or resulting from an
Event of Default by Borrower, will result in Lender’s incurring loss, including reinvestment loss, additional expense and frustration or impairment of Lender’s ability to meet its commitments to third parties. Borrower agrees to pay to
Lender upon demand damages for the detriment caused by any prepayment, and agrees that it is extremely difficult and impractical to ascertain the extent of such damages. Borrower therefore acknowledges and agrees that the formula for calculating
prepayment premiums set forth in Section 11(c) of this Note represents a reasonable estimate of the damages Lender will incur because of a prepayment. Borrower further acknowledges that the lockout and prepayment premium provisions of this Note
are a material part of the consideration for the Loan, and that the terms of this Note are in other respects more favorable to Borrower as a result of the Borrower’s voluntary agreement to the prepayment premium provisions.

  

	 	(j)	 If, after the expiration of the Lockout Period, Borrower defeases the Loan as described in Section 11.12 of the Loan Agreement during the
Defeasance Period, Borrower will not have the right to voluntarily prepay any of the principal of this Note at any time. 

  

			
		 	Page 16

	12.	 Defeasance (Section Applies if Loan is Assigned to REMIC Trust Prior to the Cut-off Date). 

 

	 	(a)	 This Section 12 will apply in the event this Note is assigned to a REMIC trust prior to the Cut-off Date. This Section 12 will be of no
effect if this Note is assigned to a REMIC trust on or after the Cut-off Date or if this Note is not assigned to a REMIC trust. 

  

	 	(b)	 Section 5 of this Note is amended by adding a new paragraph at the end of the Section as follows: 

If Borrower obtains a release of the Mortgaged Property from the lien of the Security Instrument pursuant to
Section 11.12 of the Loan Agreement, the Indebtedness will be secured by the Pledge Agreement and reference will be made to the Pledge Agreement for other rights of Lender as to collateral for the Indebtedness. 

 

	 	(c)	 Section 9 of this Note is amended by adding a new paragraph at the end thereof as follows: 

If Borrower obtains a release of the Mortgaged Property from the lien of the Security Instrument pursuant to
Section 11.12 of the Loan Agreement, Borrower will have no personal liability under this Note or the Pledge Agreement for the repayment of the Indebtedness or for the performance of any other obligations of Borrower under this Note or the
Pledge Agreement (other than any liability under Section 6.12 or Section 10.02 of the Loan Agreement for events that occur prior to the Defeasance Closing Date, whether discovered before or after the Defeasance Closing Date), and
Lender’s only recourse for the satisfaction of the Indebtedness and the performance of such obligations will be Lender’s exercise of its rights and remedies with respect to the collateral held by Lender under the Pledge Agreement as
security for the Indebtedness. 
  

	 	(d)	 Section 21(a) of this Note is amended by adding a new paragraph at the end of that subsection as follows: 

If Borrower obtains a release of the Mortgaged Property from the lien of the Security Instrument pursuant to
Section 11.12 of the Loan Agreement, all Notices, demands and other communications required or permitted to be given pursuant to this Note will be given in accordance with the Pledge Agreement. 

  

			
		 	Page 17

	13.	 Costs and Expenses. To the fullest extent allowed by applicable law, Borrower must pay all expenses and costs, including Attorneys’ Fees
and Costs incurred by Lender as a result of any default under this Note or in connection with efforts to collect any amount due under this Note, or to enforce the provisions of any of the other Loan Documents, including those incurred in
post-judgment collection efforts and in any bankruptcy proceeding (including any action for relief from the automatic stay of any bankruptcy proceeding) or judicial or non-judicial foreclosure proceeding. Borrower acknowledges and agrees that, in
connection with each request by Borrower under this Note or any Loan Document, Borrower must pay all reasonable Attorneys’ Fees and Costs and expenses incurred by Lender, including any fees charged by the Rating Agencies, regardless of whether
the matter is approved, denied or withdrawn. 

  

	14.	 Forbearance. Any forbearance by Lender in exercising any right or remedy under this Note, the Loan Agreement, or any other Loan Document or
otherwise afforded by applicable law, will not be a waiver of or preclude the exercise of that or any other right or remedy. The acceptance by Lender of any payment after the due date of such payment, or in an amount which is less than the required
payment, will not be a waiver of Lender’s right to require prompt payment when due of all other payments or to exercise any right or remedy with respect to any failure to make prompt payment. Enforcement by Lender of any security for
Borrower’s obligations under this Note will not constitute an election by Lender of remedies so as to preclude the exercise of any other right or remedy available to Lender. 

 

	15.	 Waivers. Borrower and all endorsers and Guarantors of this Note and all other third party obligors waive presentment, demand, notice of
dishonor, protest, notice of acceleration, notice of intent to demand or accelerate payment or maturity, presentment for payment, notice of nonpayment, grace, and diligence in collecting the Indebtedness. 

 

	16.	 Loan Charges. Neither this Note nor any of the other Loan Documents will be construed to create a contract for the use, forbearance or
detention of money requiring payment of interest at a rate greater than the Maximum Interest Rate. If any applicable law limiting the amount of interest or other charges permitted to be collected from Borrower in connection with the Loan is
interpreted so that any interest or other charge provided for in any Loan Document, whether considered separately or together with other charges provided for in any other Loan Document, violates that law, and Borrower is entitled to the benefit of
that law, that interest or charge is hereby reduced to the extent necessary to eliminate that violation. The amounts, if any, previously paid to Lender in excess of the permitted amounts will be applied by Lender to reduce the unpaid principal
balance of this Note. For the purpose of determining whether any applicable law limiting the amount of interest or other charges permitted to be collected from Borrower has been violated, all Indebtedness that constitutes interest, as well as all
other charges made in connection with the Indebtedness that constitute interest, will be deemed to be allocated and spread ratably over the stated term of this Note. Unless otherwise required by applicable law, such allocation and spreading will be
effected in such a manner that the rate of interest so computed is uniform throughout the stated term of this Note. 

  

			
		 	Page 18

	17.	 Commercial Purpose. Borrower represents that Borrower is incurring the Indebtedness solely for the purpose of carrying on a business or
commercial enterprise, and not for personal, family, household, or agricultural purposes. 

  

	18.	 Counting of Days. Any reference in this Note to a period of “days” means calendar days, not Business Days except where otherwise
specifically provided. 

  

	19.	 Governing Law. This Note will be governed by the law of the Property Jurisdiction. 

 

	20.	 Captions. The captions of the Sections of this Note are for convenience only and will be disregarded in construing this Note.

  

	21.	 Notices; Written Modifications. 

  

	 	(a)	 All Notices, demands and other communications required or permitted to be given pursuant to this Note will be given in accordance with
Section 11.03 of the Loan Agreement. 

  

	 	(b)	 Any modification or amendment to this Note will be ineffective unless in writing and signed by the party sought to be charged with such modification
or amendment; provided, however, in the event of a Transfer under the terms of the Loan Agreement that requires Lender’s consent, any or some or all of the Modifications to Multifamily Note set forth in Exhibit A to this Note may be
modified or rendered void by Lender at Lender’s option, by Notice to Borrower and the transferee, as a condition of Lender’s consent. 

  

	22.	 Consent to Jurisdiction and Venue. Borrower agrees that any controversy arising under or in relation to this Note may be litigated in the
Property Jurisdiction. The state and federal courts and authorities with jurisdiction in the Property Jurisdiction will have jurisdiction over all controversies that will arise under or in relation to this Note. Borrower irrevocably consents to
service, jurisdiction, and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. However, nothing in this Note is intended to limit any right
that Lender may have to bring any suit, action or proceeding relating to matters arising under this Note in any court of any other jurisdiction. 

  

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

  

			
		 	Page 19

	24.	State-Specific Provisions. N/A. 

  

	25.	 Attached Riders. The following Riders are attached to this Note: NONE. 

 

	26.	 Attached Exhibit. The following Exhibit, if marked with an “X” in the space provided, is attached to this Note:

  

					
	|X|	  	        Exhibit A        	  	Modifications to Multifamily Note

 [SIGNATURE PAGE FOLLOWS] 

  

			
		 	Page 20

 IN WITNESS WHEREOF, and in consideration of the Lender’s agreement to lend Borrower the
principal amount set forth above, Borrower has signed and delivered this Note or has caused this Note to be signed and delivered by its duly authorized representative. 
  

													
	BORROWER:	 		 	KBS LEGACY PARTNERS CRYSTAL 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/ W. Dean
Henry                    
		 		 		 		 		 	    Name: W. Dean
Henry                    
		 		 		 		 		 	    Title:   Chief Executive Officer         
					
		 		 		 		 	                    27-0668930     
                   
		 		 		 		 	    Borrower’s Employer ID Number

  

			
		 	Page 21

 Freddie Mac Loan No. 708083366 

Crystal Park at Waterford 
 The following endorsement is attached to that certain Multifamily Note executed by KBS LEGACY PARTNERS CRYSTAL LLC, a Delaware limited liability company, in favor of the undersigned. 

PAY TO THE ORDER OF
                                         WITHOUT
RECOURSE, as of the 8th day of May, 2013. 
  
  

			
	CBRE CAPITAL MARKETS, INC.,
	a Texas corporation

 
					
			
	By:	 	 /s/ Jeffrey W. Hurley
	 	

 
					
	Name:	 	Jeffrey W. Hurley	 	

 
					
	Title:	 	  Vice President	 	

  

  

			
		 	Page 22

 EXHIBIT A 
 MODIFICATIONS TO MULTIFAMILY NOTE 
 The following modifications are made to the text of the Note
that precedes this Exhibit: 
 NONE 

  

			
		 	Page A-1

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