Document:

Registration Rights Agreement

 Exhibit 10.97 
 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION RIGHTS AGREEMENT, dated
July 13, 2012 (the “Agreement”), is entered into by and among SBA Telecommunications, Inc., a Florida corporation (the “Company”), SBA Communications Corporation, a Florida corporation (the
“Guarantor”), and the several initial purchasers listed in Schedule 2 hereto (the “Initial Purchasers”). 
 The Company, the Guarantor and the Initial Purchasers are parties to the Purchase Agreement dated July 10, 2012 (the “Purchase Agreement”), which provides for the sale by the Company
to the Initial Purchasers of $800,000,000 aggregate principal amount of 5.750% Senior Notes due 2020 of the Company (the “Securities”), which will be guaranteed on an unsecured senior basis by the Guarantor. As an inducement to the
Initial Purchasers to enter into the Purchase Agreement, the Company and the Guarantor have agreed to provide to the Initial Purchasers and their direct and indirect transferees the registration rights set forth in this Agreement. The execution and
delivery of this Agreement is a condition to the closing under the Purchase Agreement. 
 In consideration of the foregoing, the
parties hereto agree as follows: 
 1. Definitions. As used in this Agreement, the following terms shall have the
following meanings: 
 “Agreement” shall have the meaning set forth in the preamble. 

“Business Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks in New York City
are authorized or required by law to remain closed. 
 “Company” shall have the meaning set forth in the
preamble and shall also include any successor entity. 
 “Closing Date” shall mean the first date on which any
Securities are initially issued. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended
from time to time. 
 “Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

 “Exchange Offer” shall mean the exchange offer by the Company and the Guarantor of Exchange Securities for
Registrable Securities pursuant to Section 2(a) hereof. 
 “Exchange Offer Registration” shall mean a
registration under the Securities Act effected pursuant to Section 2(a) hereof. 
 “Exchange Offer Registration
Statement” shall mean an exchange offer registration statement on Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to such registration statement, in each case including the Prospectus contained
therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein. 
 “Exchange
Securities” shall mean senior notes issued by the Company and guaranteed by the Guarantor under the Indenture containing terms identical to the Securities (except that the Exchange Securities will not be subject to restrictions on transfer
or to any increase in annual interest rate for failure to comply with this Agreement) and to be offered to Holders of Securities in exchange for Registrable Securities pursuant to the Exchange Offer. 

 “FINRA” shall mean the Financial Industry Regulatory Authority. 

“Free Writing Prospectus” shall mean a free writing prospectus, as defined in Rule 405 under the Securities Act.

 “Guarantee” shall mean the guarantee of the Securities and Exchange Securities by the Guarantor under the
Indenture. 
 “Guarantor” shall have the meaning set forth in the preamble. 

“Holder” shall mean each Initial Purchaser, for so long as it owns any Registrable Securities, and each of the Initial
Purchasers’ successors, assigns and direct and indirect transferees who becomes an owner of Registrable Securities under the Indenture; provided that for purposes of Sections 4 and 5 of this Agreement, the term “Holders” shall include
Participating Broker-Dealers. 
 “Indemnified Person” shall have the meaning set forth in Section 5(c)
hereof. 
 “Indemnifying Person” shall have the meaning set forth in Section 5(c) hereof. 

“Indenture” shall mean the indenture relating to the Securities, dated as of July 13, 2012 among the Company, the
Guarantor and U.S. Bank National Association, as trustee, and as the same may be amended from time to time in accordance with the terms thereof. 
 “Initial Purchasers” shall have the meaning set forth in the preamble. 
 “Inspector” shall have the meaning set forth in Section 3(a)(xiii) hereof. 
 “Issuer Free Writing Prospectus” shall mean an issuer free writing prospectus, as defined in Rule 433 under the Securities Act. 

“Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof. 

“Permitted Free Writing Prospectus” shall have the meaning set forth in Section 6(k) hereof. 

“Person” shall mean an individual, partnership, limited liability company, corporation, trust or unincorporated
organization, or a government or agency or political subdivision thereof. 
 “Prospectus” shall mean the
prospectus included in, or, pursuant to the rules and regulations of the Securities Act, deemed a part of, a Registration Statement, including any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including a prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other amendments and supplements to such prospectus, and in
each case including any document incorporated by reference therein. 
 “Purchase Agreement” shall have the
meaning set forth in the preamble. 
 “Registrable Securities” shall mean the Securities; provided that such
Securities shall cease to be Registrable Securities (i) when such Securities cease to be outstanding, (ii) when a Registration Statement with respect to such Securities has become effective under the Securities Act and such Securities have
been exchanged or disposed of pursuant to such Registration Statement or (iii) except in the case of Securities that otherwise remain Registrable Securities and that are held by an Initial Purchaser and that are ineligible to be exchanged in
the Exchange Offer, when the Exchange Offer is consummated. 

 “Registration Expenses” shall mean any and all expenses incident to
performance of or compliance by the Company and the Guarantor with this Agreement, including without limitation: (i) all SEC, stock exchange or FINRA registration and filing fees, (ii) all fees and expenses incurred in connection with
compliance with state securities or blue sky laws (including reasonable fees and disbursements of one counsel for any Underwriters or Holders in connection with blue sky qualification of any Exchange Securities or Registrable Securities),
(iii) all expenses of any Persons in preparing or assisting in preparing, word processing, printing and distributing any Registration Statement, any Prospectus and any amendments or supplements thereto, any underwriting agreements, securities
sales agreements or other similar agreements and any other documents relating to the performance of and compliance with this Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating to the qualification of the
Indenture under applicable securities laws, (vi) the reasonable fees and disbursements of the Trustee and its counsel, (vii) the reasonable fees and disbursements of counsel for the Company and the Guarantor and, in the case of a Shelf
Registration Statement, the reasonable fees and disbursements of one counsel for the Holders (which counsel shall initially be counsel for the Initial Purchasers, subject to replacement upon action by a majority of Holders) and (viii) the fees
and disbursements of the independent public accountants of the Company and the Guarantor, including the expenses of any special audits or “comfort” letters required by or incident to the performance of and compliance with this Agreement,
but excluding fees and expenses of counsel to the Underwriters (other than fees and expenses set forth in clause (ii) above) or the Holders and underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating
to the sale or disposition of Registrable Securities by a Holder. 
 “Registration Statement” shall mean any
registration statement of the Company and the Guarantor that covers any of the Exchange Securities or Registrable Securities pursuant to the provisions of this Agreement and all amendments and supplements to any such registration statement,
including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein. 

“SEC” shall mean the United States Securities and Exchange Commission. 

“Securities” shall have the meaning set forth in the preamble. 

“Securities Act” shall mean the Securities Act of 1933, as amended from time to time. 

“Shelf Additional Interest Date” shall have the meaning set forth in Section 2(d) hereof. 

“Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof. 

“Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof. 

“Shelf Registration Statement” shall mean a “shelf” registration statement of the Company and the Guarantor
filed under the Securities Act providing for the registration on a continuous or delayed basis of the Registrable Securities pursuant to Rule 415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all amendments and
supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein. 

“Shelf Request” shall have the meaning set forth in Section 2(b) hereof. 

 “Staff” shall mean the staff of the SEC. 

“Target Registration Date” shall have the meaning set forth in Section 2(d) hereof. 

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to time. 

“Trustee” shall mean the trustee with respect to the Securities under the Indenture. 

“Underwriter” shall have the meaning set forth in Section 3(e) hereof. 

“Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an Underwriter for reoffering
to the public. 
 2. Registration Under the Securities Act. (a) To the extent not prohibited by any
applicable law or applicable interpretations of the Staff, the Company and the Guarantor shall use reasonable best efforts to (i) cause to be filed an Exchange Offer Registration Statement covering offers to the Holders to exchange all the
Registrable Securities for Exchange Securities, (ii) have such Registration Statement remain effective until 180 days after the last Exchange Date for use by one or more Participating Broker-Dealers, (iii) commence the Exchange Offer
promptly after the Exchange Offer Registration Statement is declared effective by the SEC and (iv) complete the Exchange Offer within 360 days after the Closing Date. 
 The Company and the Guarantor shall commence the Exchange Offer by mailing the related Prospectus, appropriate letters of transmittal and other accompanying documents to each Holder stating, in addition
to such other disclosures as are required by applicable law, substantially the following: 
  

	 	(i)	that the Exchange Offer is being made pursuant to this Agreement and that all Registrable Securities validly tendered and not properly withdrawn will be accepted for
exchange; 

  

	 	(ii)	the dates of acceptance for exchange (which shall be a period of at least 20 Business Days from the date such notice is mailed) (the “Exchange Dates”);

  

	 	(iii)	that any Registrable Security not tendered will remain outstanding and continue to accrue interest but will not retain any rights under this Agreement, except as
otherwise specified herein; 

  

	 	(iv)	that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange Offer will be required to (A) surrender such Registrable Security,
together with the appropriate letter of transmittal, to the institution and at the address (located in the Borough of Manhattan, The City of New York) and in the manner specified in the notice, or (B) effect such exchange otherwise in
compliance with the applicable procedures of the depositary for such Registrable Security, in each case prior to the close of business on the last Exchange Date; and 

 

	 	(v)	that any Holder will be entitled to withdraw its election, not later than the close of business on the last Exchange Date, by (A) sending to the institution and at
the address (located in the Borough of Manhattan, The City of New York) specified in the notice, a telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the principal amount of Registrable Securities delivered for
exchange and a statement that such Holder is withdrawing its election to have such Securities exchanged or (B) effecting such withdrawal in compliance with the applicable procedures of the depositary for the Registrable Securities.

 As a condition to participating in the Exchange Offer, a Holder will be required to
represent to the Company and the Guarantor that (i) any Exchange Securities to be received by it will be acquired in the ordinary course of its business, (ii) at the time of the commencement of the Exchange Offer it has no arrangement or
understanding with any Person to participate in the distribution (within the meaning of the Securities Act) of the Exchange Securities in violation of the provisions of the Securities Act, (iii) it is not an “affiliate” (within the
meaning of Rule 405 under the Securities Act) of the Company or the Guarantor and (iv) if such Holder is a broker-dealer that will receive Exchange Securities for its own account in exchange for Registrable Securities that were acquired as a
result of market-making or other trading activities, then such Holder will deliver a Prospectus (or, to the extent permitted by law, make available a Prospectus to purchasers) in connection with any resale of such Exchange Securities. 

As soon as practicable after the last Exchange Date, the Company and the Guarantor shall: 

 

	 	(i)	accept for exchange Registrable Securities or portions thereof validly tendered and not properly withdrawn pursuant to the Exchange Offer; and 

 

	 	(ii)	deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities or portions thereof so accepted for exchange by the Company and issue, and
cause the Trustee to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal amount to the principal amount of the Registrable Securities tendered by such Holder. 

The Company and the Guarantor shall use reasonable best efforts to complete the Exchange Offer as provided above and shall comply with
the applicable requirements of the Securities Act, the Exchange Act and other applicable laws and regulations in connection with the Exchange Offer. The Exchange Offer shall not be subject to any conditions, other than that the Exchange Offer shall
not violate any applicable law or applicable interpretations of the Staff. 
 (b) In the event that
(i) the Company and the Guarantor determine that the Exchange Offer Registration provided for in Section 2(a) above is not available or may not be completed as soon as practicable after the last Exchange Date because it would violate any
applicable law or applicable interpretations of the Staff, (ii) the Exchange Offer is not for any other reason completed by the 360th calendar day following the Closing Date or (iii) upon receipt of a written request (a “Shelf
Request”) from any Initial Purchaser representing that it holds Registrable Securities that are or were ineligible to be exchanged in the Exchange Offer, the Company and the Guarantor shall use reasonable best efforts to cause to be filed
as soon as practicable after such determination date or Shelf Request, as the case may be, a Shelf Registration Statement providing for the sale of all the Registrable Securities by the Holders thereof and to have such Shelf Registration Statement
become effective. 
 In the event that the Company and the Guarantor are requested to file a Shelf Registration Statement
pursuant to clause (iii) of the preceding sentence, the Company and the Guarantor shall use reasonable best efforts to file and have become effective both an Exchange Offer Registration Statement pursuant to Section 2(a) with respect to
all Registrable Securities and a Shelf Registration Statement (which may be a combined Registration Statement with the Exchange Offer Registration Statement) with respect to offers and sales of Registrable Securities held by the Initial Purchasers
after completion of the Exchange Offer. 
 The Company and the Guarantor agree to use reasonable best efforts to keep the Shelf
Registration Statement continuously effective until the expiration of the time period referred to in Rule 144 under the Securities Act (or any similar rule in force, but not Rule 144A), or such shorter period that will terminate

 
when the Registrable Securities have been sold pursuant to the Shelf Registration Statement (the period from the Closing Date to such earlier day, the “Shelf Effectiveness
Period”). The Company and the Guarantor further agree to supplement or amend the Shelf Registration Statement and the related Prospectus if required by the rules, regulations or instructions applicable to the registration form used by the
Company for such Shelf Registration Statement or by the Securities Act or by any other rules and regulations thereunder or if reasonably requested by a Holder of Registrable Securities with respect to information relating to such Holder, and to use
reasonable best efforts to cause any such amendment to become effective, if required, and such Shelf Registration Statement and Prospectus to become usable as soon as thereafter practicable. The Company and the Guarantor agree to furnish to the
Holders of Registrable Securities copies of any such supplement or amendment promptly after its being used or filed with the SEC. 
 (c) The Company and the Guarantor shall pay all Registration Expenses in connection with any registration pursuant to Section 2(a) or Section 2(b) hereof. Each Holder shall pay all underwriting
discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement. 

(d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof will not be deemed to have become effective unless it
has been declared effective by the SEC. A Shelf Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become effective unless it has been declared effective by the SEC or is automatically effective upon filing with
the SEC as provided by Rule 462 under the Securities Act. 
 In the event that either the Exchange Offer is
not completed or the Shelf Registration Statement, if required pursuant to Section 2(b)(i) or 2(b)(ii) hereof, has not become effective on or prior to the 360th calendar day following the Closing Date (the “Target Registration Date”), the interest rate on the
Registrable Securities will be increased by (i) 0.25% per annum for the first 90-day period immediately following the Target Registration Date and (ii) an additional 0.25% per annum with respect to each subsequent 90 day period
thereafter, in each case until the Exchange Offer is completed or the Shelf Registration Statement, if required hereby, becomes effective, up to a maximum increase of 1.00% per annum. In the event that the Company receives a Shelf Request
pursuant to Section 2(b)(iii), and the Shelf Registration Statement required to be filed thereby has not become effective by the later of the 360th calendar day following the Closing Date or (y) 120 days after delivery of such Shelf Request (such later date,
the “Shelf Additional Interest Date”), then the interest rate on the Registrable Securities will be increased by (i) 0.25% per annum for the first 90-day period payable commencing from one day after the Shelf Additional
Interest Date and (ii) an additional 0.25% per annum with respect to each subsequent 90 day period thereafter, in each case until the Shelf Registration Statement becomes effective or the expiration of the Shelf Effectiveness Period, up to
a maximum increase of 1.00% per annum. 
 If the Shelf Registration Statement, if required hereby, has
become effective and thereafter either ceases to be effective or the Prospectus contained therein ceases to be usable, in each case whether or not permitted by this Agreement, at any time during the Shelf Effectiveness Period, and such failure to
remain effective or usable exists for more than 30 days (whether or not consecutive) in any 12-month period, then the interest rate on the Registrable Securities will be increased by (i) 0.25% per annum for the first 90-day period
commencing on the 31st day in such 12-month period that
such Shelf Registration Statement ceases to be effective or the Prospectus contained therein ceases to be usable and (ii) an additional 0.25% per annum with respect to each subsequent 90 day period thereafter, in each case until the Shelf
Registration Statement has again become effective, the Prospectus again becomes usable or the expiration of the Shelf Effectiveness Period, up to a maximum increase of 1.00% per annum. 

 (e) Without limiting the remedies available to the Initial Purchasers and the Holders, the
Company and the Guarantor acknowledge that any failure by the Company or the Guarantor to comply with their obligations under Section 2(a) and Section 2(b) hereof may result in material irreparable injury to the Initial Purchasers or the
Holders for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the Initial Purchasers or any Holder may obtain such relief as may be
required to specifically enforce the Company’s and the Guarantor’s obligations under Section 2(a) and Section 2(b) hereof. 
 (f) The Company represents, warrants and covenants that it (including its agents and representatives) will not prepare, make, use, authorize, approve or refer to any Free Writing Prospectus. 

3. Registration Procedures.  
 (a) In connection with their obligations pursuant to Section 2(a) and Section 2(b) hereof, the Company and the Guarantor shall as expeditiously as possible: 

 

	 	(i)	use reasonable best efforts to prepare and file with the SEC a Registration Statement on the appropriate form under the Securities Act, which form (x) shall be
selected by the Company and the Guarantor, (y) shall, in the case of a Shelf Registration, be available for the sale of the Registrable Securities by the Holders thereof and (z) shall comply as to form in all material respects with the
requirements of the applicable form and include all financial statements required by the SEC to be filed therewith; and use reasonable best efforts to cause such Registration Statement to become effective and remain effective for the applicable
period in accordance with Section 2 hereof; 

  

	 	(ii)	use reasonable best efforts to prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep
such Registration Statement effective for the applicable period in accordance with Section 2 hereof and cause each Prospectus to be supplemented by any required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424
under the Securities Act; and keep each Prospectus current during the period described in Section 4(3) of and Rule 174 under the Securities Act that is applicable to transactions by brokers or dealers with respect to the Registrable Securities
or Exchange Securities; 

  

	 	(iii)	in the case of a Shelf Registration, use reasonable best efforts to furnish to each Holder of Registrable Securities, to counsel for the Initial Purchasers, to counsel
for such Holders and to each Underwriter of an Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each Prospectus or preliminary prospectus, and any amendment or supplement thereto, as such Holder, counsel or
Underwriters may reasonably request in order to facilitate the sale or other disposition of the Registrable Securities thereunder; and the Company and the Guarantor consent to the use of such Prospectus, preliminary prospectus and any amendment or
supplement thereto in accordance with applicable law by each of the Holders of Registrable Securities and any such Underwriters in connection with the offering and sale of the Registrable Securities covered by and in the manner described in such
Prospectus, preliminary prospectus or any amendment or supplement thereto in accordance with applicable law; 

  

	 	(iv)	 use reasonable best efforts to register or qualify the Registrable Securities under all applicable state securities or “blue sky” laws of
such jurisdictions as any Holder of Registrable Securities covered by a Registration Statement shall reasonably request in 

	 	
writing by the time the applicable Registration Statement becomes effective; cooperate with such Holders in connection with any filings required to be made with FINRA; and do any and all other
acts and things that may be reasonably necessary or advisable to enable each Holder to complete the disposition in each such jurisdiction of the Registrable Securities owned by such Holder; provided that neither the Company nor the Guarantor
shall be required to (1) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (2) file any general consent to service of process in
any such jurisdiction or (3) subject itself to taxation in any such jurisdiction if it is not so subject; 

  

	 	(v)	notify counsel for the Initial Purchasers and, in the case of a Shelf Registration, notify each Holder of Registrable Securities and counsel for such Holders promptly
and, if requested by any such Holder or counsel, confirm such advice in writing (1) when a Registration Statement has become effective, when any post-effective amendment thereto has been filed and becomes effective and when any amendment or
supplement to the Prospectus has been filed, (2) of any request by the SEC or any state securities authority for amendments and supplements to a Registration Statement or Prospectus or for additional information after the Registration Statement
has become effective, (3) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, including the receipt by
the Company of any notice of objection of the SEC to the use of a Shelf Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act, (4) if, between the applicable effective date of a Shelf
Registration Statement and the closing of any sale of Registrable Securities covered thereby, the representations and warranties of the Company or the Guarantor contained in any underwriting agreement, securities sales agreement or other similar
agreement, if any, relating to an offering of such Registrable Securities cease to be true and correct in all material respects or if the Company or the Guarantor receives any notification with respect to the suspension of the qualification of the
Registrable Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose, (5) of the happening of any event during the period a Registration Statement is effective that makes any statement made in such
Registration Statement or the related Prospectus untrue in any material respect or that requires the making of any changes in such Registration Statement or Prospectus in order to make the statements therein not misleading and (6) of any
determination by the Company or the Guarantor that a post-effective amendment to a Registration Statement or any amendment or supplement to the Prospectus would be appropriate; 

 

	 	(vi)	use reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement or, in the case of a Shelf Registration, the
resolution of any objection of the SEC pursuant to Rule 401(g)(2), including by filing an amendment to such Shelf Registration Statement on the proper form, at the earliest possible moment and provide immediate notice to each Holder of the
withdrawal of any such order or such resolution; 

  

	 	(vii)	in the case of a Shelf Registration, furnish to each Holder of Registrable Securities, without charge, at least one conformed copy of each Registration Statement and
any post-effective amendment thereto (without any documents incorporated therein by reference or exhibits thereto, unless requested); 

  

	 	(viii)	 in the case of a Shelf Registration, cooperate with the Holders of Registrable Securities to facilitate the timely preparation and delivery of
certificates representing Registrable 

	 	
Securities to be sold and not bearing any restrictive legends and enable such Registrable Securities to be issued in such denominations and registered in such names (consistent with the
provisions of the Indenture) as such Holders may reasonably request at least one Business Day prior to the closing of any sale of Registrable Securities; 

  

	 	(ix)	in the case of a Shelf Registration, upon the occurrence of any event contemplated by Section 3(a)(v)(5) hereof, use reasonable best efforts to prepare and file
with the SEC a supplement or post-effective amendment to such Shelf Registration Statement or any related Prospectus or Issuer Free Writing Prospectus or any document incorporated therein by reference or file any other required document so that, as
thereafter delivered (or, to the extent permitted by law, made available) to purchasers of the Registrable Securities, such Prospectus or Issuer Free Writing Prospectus will cease to have the identified deficiencies and will not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and the Company and the Guarantor shall notify the Holders of
Registrable Securities to suspend use of the Prospectus or Issuer Free Writing Prospectus as promptly as practicable after the occurrence of such an event, and such Holders hereby agree to suspend use of the Prospectus or Issuer Free Writing
Prospectus until the Company and the Guarantor have amended or supplemented the Prospectus or Issuer Free Writing Prospectus to correct such misstatement or omission; 

 

	 	(x)	a reasonable time prior to the filing of any Registration Statement, any Prospectus, any Issuer Free Writing Prospectus, any amendment to a Registration Statement or
amendment or supplement to a Prospectus or Issuer Free Writing Prospectus or of any document that is to be incorporated by reference into a Registration Statement or a Prospectus after initial filing of a Registration Statement, provide copies of
such document to the Initial Purchasers and their counsel (and, in the case of a Shelf Registration Statement, to the Holders of Registrable Securities and their counsel) and make such of the representatives of the Company and the Guarantor as shall
be reasonably requested by the Initial Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities or their counsel) available for discussion of such document; and the Company and the
Guarantor shall not, at any time after initial filing of a Registration Statement, use or file any Prospectus, any Issuer Free Writing Prospectus, any amendment of or supplement to a Registration Statement or a Prospectus, or any document that is to
be incorporated by reference into a Registration Statement or a Prospectus, of which the Initial Purchasers and their counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities and their counsel) shall not
have previously been advised and furnished a copy or to which the Initial Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities or their counsel) shall reasonably object within five
Business Days after the receipt thereof; 

  

	 	(xi)	obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case may be, not later than the initial effective date of a Registration Statement;

  

	 	(xii)	cause the Indenture to be qualified under the Trust Indenture Act in connection with the registration of the Exchange Securities or Registrable Securities, as the case
may be; cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be required for the Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and execute, and use reasonable best efforts
to cause the Trustee to execute, all documents as may be required to effect such changes and all other forms and documents required to be filed with the SEC to enable the Indenture to be so qualified in a timely manner; 

	 	(xiii)	in the case of a Shelf Registration, make available for inspection by a representative of the Holders of the Registrable Securities (an “Inspector”), any
Underwriter participating in any disposition pursuant to such Shelf Registration Statement, any attorneys and accountants designated by a majority of the Holders of Registrable Securities to be included in such Shelf Registration and any attorneys
and accountants designated by such Underwriter, at reasonable times and in a reasonable manner, all pertinent financial and other records, documents and properties of the Company, the Guarantor and their respective subsidiaries, and cause the
respective officers, directors and employees of the Company and the Guarantor to supply all information reasonably requested by any such Inspector, Underwriter, attorney or accountant in connection with a Shelf Registration Statement;
provided that if any such information is identified by the Company or the Guarantor as being confidential or proprietary, each Person receiving such information shall take such actions as are reasonably necessary to protect the
confidentiality of such information to the extent such action is otherwise not inconsistent with, an impairment of or in derogation of the rights and interests of any Inspector, Holder or Underwriter; 

 

	 	(xiv)	in the case of a Shelf Registration, use reasonable best efforts to cause all Registrable Securities to be listed on any securities exchange or any automated quotation
system on which similar securities issued or guaranteed by the Company or the Guarantor are then listed if requested by the majority of Holders, to the extent such Registrable Securities satisfy applicable listing requirements;

  

	 	(xv)	if reasonably requested by any Holder of Registrable Securities covered by a Shelf Registration Statement, promptly include in a Prospectus supplement or post-effective
amendment such information with respect to such Holder as such Holder reasonably requests to be included therein and make all required filings of such Prospectus supplement or such post-effective amendment as soon as reasonably practicable after the
Company has received notification of the matters to be so included in such filing; and 

  

	 	(xvi)	 in the case of a Shelf Registration, enter into such customary agreements and take all such other actions in connection therewith (including those
requested by a majority of the Holders) in order to expedite or facilitate the disposition of such Registrable Securities including, but not limited to, an Underwritten Offering and in such connection, (1) to the extent possible, make such
representations and warranties to the Holders and any Underwriters of such Registrable Securities with respect to the business of the Company, the Guarantor and their respective subsidiaries and the Registration Statement, Prospectus and documents
incorporated by reference or deemed incorporated by reference, if any, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings and confirm the same if and when requested,
(2) obtain opinions of counsel to the Company and the Guarantor (which counsel and opinions, in form, scope and substance, shall be reasonably satisfactory to the Holders and such Underwriters and their respective counsel) addressed to each
selling Holder and Underwriter of Registrable Securities, covering the matters customarily covered in opinions requested in underwritten offerings, (3) obtain “comfort” letters from the independent certified public accountants of the
Guarantor (and, if necessary, any other certified public accountant of the Company or any subsidiary of the Company or the Guarantor, or of any business acquired by the Company or the Guarantor for which financial statements and financial data are
or are required to be included in the Registration Statement) addressed to each selling Holder (to 

	 	
the extent permitted by applicable professional standards) and Underwriter of Registrable Securities, such letters to be in customary form and covering matters of the type customarily covered in
“comfort” letters in connection with underwritten offerings, including but not limited to financial information contained in any preliminary prospectus or Prospectus and (4) deliver such documents and certificates as may be reasonably
requested by the Holders of a majority in principal amount of the Registrable Securities being sold or the Underwriters, and which are customarily delivered in underwritten offerings, to evidence the continued validity of the representations and
warranties of the Company and the Guarantor made pursuant to clause (1) above and to evidence compliance with any customary conditions contained in an underwriting agreement. 

(b) In the case of a Shelf Registration Statement, the Company may require each Holder of Registrable Securities to furnish to the
Company such information regarding such Holder and the proposed disposition by such Holder of such Registrable Securities as the Company and the Guarantor may from time to time reasonably request in writing. 

(c) In the case of a Shelf Registration Statement, each Holder of Registrable Securities covered in such Shelf Registration Statement
agrees that, upon receipt of any notice from the Company and the Guarantor of the happening of any event of the kind described in Section 3(a)(v)(3) or 3(a)(v)(5) hereof, such Holder will forthwith discontinue disposition of Registrable
Securities pursuant to the Shelf Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus or Issuer Free Writing Prospectus contemplated by Section 3(a)(ix) hereof and, if so directed by
the Company and the Guarantor, such Holder will deliver to the Company and the Guarantor all copies in its possession, other than permanent file copies then in such Holder’s possession, of the Prospectus and any Issuer Free Writing Prospectuses
covering such Registrable Securities that are current at the time of receipt of such notice. 
 (d) If the Company and the
Guarantor shall give any notice to suspend the disposition of Registrable Securities pursuant to a Registration Statement, the Company and the Guarantor shall extend the period during which such Registration Statement shall be maintained effective
pursuant to this Agreement by the number of days during the period from and including the date of the giving of such notice to and including the date when the Holders of such Registrable Securities shall have received copies of the supplemented or
amended Prospectus necessary to resume such dispositions. The Company and the Guarantor may give any such notice only twice during any 365-day period and any such suspensions shall not exceed 30 days for each suspension and there shall not be more
than two suspensions in effect during any 365-day period. 
 (e) The Holders of Registrable Securities covered by a Shelf
Registration Statement who desire to do so may sell such Registrable Securities in an Underwritten Offering. In any such Underwritten Offering, the investment bank or investment banks and manager or managers (each, an “Underwriter”) that
will administer the offering will be selected by the Holders of a majority in principal amount of the Registrable Securities included in such offering. 
 4. Participation of Broker-Dealers in Exchange Offer.  

(a) The Staff has taken the position that any broker-dealer that receives Exchange Securities for its own account in the Exchange
Offer in exchange for Securities that were acquired by such broker-dealer as a result of market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be an “underwriter” within the meaning
of the Securities Act and must deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of such Exchange Securities. 

 The Company and the Guarantor understand that it is the Staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a plan of distribution containing a statement to the above effect and the means by which Participating Broker-Dealers may resell the Exchange Securities, without naming the
Participating Broker-Dealers or specifying the amount of Exchange Securities owned by them, such Prospectus may be delivered by Participating Broker-Dealers (or, to the extent permitted by law, made available to purchasers) to satisfy their
prospectus delivery obligation under the Securities Act in connection with resales of Exchange Securities for their own accounts, so long as the Prospectus otherwise meets the requirements of the Securities Act. 

(b) In light of the above, and notwithstanding the other provisions of this Agreement, the Company and the Guarantor agree to amend or
supplement the Prospectus contained in the Exchange Offer Registration Statement for a period of up to 180 days after the last Exchange Date (as such period may be extended pursuant to Section 3(d) of this Agreement), in order to expedite or
facilitate the disposition of any Exchange Securities by Participating Broker-Dealers consistent with the positions of the Staff recited in Section 4(a) above. The Company and the Guarantor further agree that Participating Broker-Dealers shall
be authorized to deliver such Prospectus (or, to the extent permitted by law, make available) during such period in connection with the resales contemplated by this Section 4. 

(c) The Initial Purchasers shall have no liability to the Company, the Guarantor or any Holder with respect to any request that they may
make pursuant to Section 4(b) above. 
 5. Indemnification and Contribution.  

(a) The Company and the Guarantor, jointly and severally, agree to indemnify and hold harmless each Initial Purchaser and each
Holder, their respective affiliates, directors and officers and each Person, if any, who controls any Initial Purchaser or any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
against any and all losses, claims, damages and liabilities (including, without limitation, legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred),
joint or several, that arise out of, or are based upon, (1) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements therein not misleading, or (2) any untrue statement or alleged untrue statement of a material fact contained in any Prospectus or any Issuer Free Writing Prospectus, or
any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case except insofar as such losses, claims,
damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information provided by any Initial Purchaser or Holder expressly for
use therein. In connection with any Underwritten Offering permitted by Section 3, the Company and the Guarantor, jointly and severally, will also indemnify the Underwriters, if any, selling brokers, dealers and similar securities industry
professionals participating in the distribution, their respective affiliates and each Person who controls such Persons (within the meaning of the Securities Act and the Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders, if requested in connection with any Registration Statement, any Prospectus or any Issuer Free Writing Prospectus. 

 (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the
Company, the Guarantor, the Initial Purchasers and the other selling Holders, the directors of the Company and the Guarantor, each officer of the Company and the Guarantor who signed the Registration Statement and each Person, if any, who controls
the Company, the Guarantor, any Initial Purchaser and any other selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in paragraph
(a) above, but only with respect to any losses, claims, damages or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any
information relating to such Holder furnished to the Company in writing by such Holder expressly for use in any Registration Statement, any Prospectus or any Issuer Free Writing Prospectus. 

(c) If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or
asserted against any Person in respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”) shall promptly notify the Person against whom such
indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have under paragraph (a) or
(b) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have to an Indemnified Person otherwise than under paragraph (a) or (b) above. If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the
Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others entitled to indemnification pursuant to this Section 5 that the
Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such proceeding and shall pay the fees and expenses of such counsel related to such proceeding, as incurred. In any such proceeding, any Indemnified Person
shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the
contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal defenses
available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified
Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding
or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be reimbursed as they are
incurred. Any such separate firm (x) if designated for one or more Initial Purchasers or affiliates, directors, officers or control Persons of one or more Initial Purchasers shall be designated in writing by J.P. Morgan Securities LLC unless
such representation is to include Holders that are not Initial Purchasers, (y) if designated for one or more Holders or directors, officers or control Persons of any Holder, in each case including one or more Holders other than Initial
Purchasers, shall be designated in writing by a majority of the Holders to be represented and (z) in all other cases shall be designated in writing by the Company. The Indemnifying Person shall not be liable for any settlement of any proceeding
effected without its prior written consent, but if settled with such consent or if there is a final non-appealable judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability
by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel as contemplated
by this paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days

 
after receipt by the Indemnifying Person of such request, (ii) the Indemnifying Person shall not have reimbursed the Indemnified Person for such amounts as are not in dispute in accordance
with such request prior to the date of such settlement and (iii) the Indemnifying Person shall not have notified the Indemnified Person in writing (and in reasonable detail) of its good faith belief that such reimbursement is not required. No
Indemnifying Person shall, without the prior written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could
have been sought hereunder by such Indemnified Person, unless such settlement (A) includes an unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from all liability on
claims that are the subject matter of such proceeding and (B) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person. 

(d) If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an Indemnified Person or insufficient
in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantor from the offering of the Securities and the
Exchange Securities, on the one hand, and by the Holders from receiving Securities or Exchange Securities registered under the Securities Act, on the other hand, or (ii) if the allocation provided by clause (i) is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) but also the relative fault of the Company and the Guarantor on the one hand and the Holders on the other in connection
with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative fault of the Company and the Guarantor on the one hand and the Holders on the other
shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and the Guarantor
or by the applicable Holders, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 
 (e) The Company, the Guarantor and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 5 were determined by pro rata allocation (even if
the Holders were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (d) above. The amount paid or payable by an Indemnified Person as
a result of the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection
with any such action or claim. Notwithstanding the provisions of this Section 5, in no event shall a Holder be required to contribute any amount in excess of the amount by which the total price at which the Securities or Exchange Securities
sold by such Holder exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to this Section 5 are
several and not joint. 
 (f) The remedies provided for in this Section 5 are not exclusive and shall not limit any rights
or remedies that may otherwise be available to any Indemnified Person at law or in equity. 
 (g) The indemnity and contribution
provisions contained in this Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of the Initial Purchasers or any Holder or any
Person controlling any Initial Purchaser or any 

 
Holder, or by or on behalf of the Company or the Guarantor or the officers or directors of or any Person controlling the Company or the Guarantor, (iii) acceptance of any of the Exchange
Securities and (iv) any sale of Registrable Securities pursuant to a Shelf Registration Statement. 
 6. General.

 (a) No Inconsistent Agreements. The Company and the Guarantor represent, warrant and agree that (i) the
rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of any other outstanding securities issued or guaranteed by the Company or the Guarantor under any other
agreement and (ii) neither the Company nor the Guarantor has entered into, or on or after the date of this Agreement will enter into, any agreement that is inconsistent with the rights granted to the Holders of Registrable Securities in this
Agreement or otherwise conflicts with the provisions hereof. 
 (b) Amendments and Waivers. The provisions of this
Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Company and the Guarantor have obtained the written
consent of a majority of the Holders affected by such amendment, modification, supplement, waiver or consent; provided that no amendment, modification, supplement, waiver or consent to any departure from the provisions of Section 5
hereof shall be effective as against any Holder of Registrable Securities unless consented to in writing by such Holder. Any amendments, modifications, supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing
executed by each of the parties hereto. 
 (c) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, registered first-class mail, telex, or any courier guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such Holder to the Company by means of a notice
given in accordance with the provisions of this Section 6(c), which address initially is, with respect to the Initial Purchasers, the addresses set forth in the Purchase Agreement; (ii) if to the Company and the Guarantor, initially at the
Company’s address set forth in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(c); and (iii) to such other persons at their respective addresses
as provided in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(c). All such notices and communications shall be deemed to have been duly given: at the
time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged, if transmitted by facsimile; and on the next Business Day if timely delivered to an air
courier guaranteeing overnight delivery. Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee, at the address specified in the Indenture. 

(d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors, assigns and
transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders; provided that nothing herein shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or otherwise, such Registrable Securities
shall be held subject to all the terms of this Agreement, and by taking and holding such Registrable Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement
and such Person shall be entitled to receive the benefits hereof. The Initial Purchasers (in their capacity as Initial Purchasers) shall have no liability or obligation to the Company or the Guarantor with respect to any failure by a Holder to
comply with, or any breach by any Holder of, any of the obligations of such Holder under this Agreement. 

 (e) Third Party Beneficiaries. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Company and the Guarantor, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights or the rights of other Holders hereunder. 
 (f) Counterparts. This Agreement may be
executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

(g) Headings. The headings in this Agreement are for convenience of reference only, are not a part of this Agreement and shall not
limit or otherwise affect the meaning hereof. 
 (h) Governing Law. This Agreement, and any claim, controversy or dispute
relating to or arising out of this Agreement, shall be governed by and construed in accordance with the laws of the State of New York. Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive
jurisdiction of the federal and state courts located in New York County, New York, including the United States District Court for the Southern District of New York, in connection with any claim brought with respect to this Agreement or related
matter and waives any right to claim such forum would be inappropriate, including concepts of forum non conveniens. 

(i) Waiver of Jury Trial. The Company, the Guarantor and each of the Initial Purchasers hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. 

(j) Entire Agreement; Severability. This Agreement contains the entire agreement between the parties relating to the subject
matter hereof and supersedes all oral statements and prior writings with respect thereto. If any term, provision, covenant or restriction contained in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable
or against public policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated. The Company, the Guarantor and the Initial
Purchasers shall endeavor in good faith negotiations to replace the invalid, void or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, void or unenforceable provisions.

 (k) Free Writing Prospectuses. Each Holder represents that it has not prepared or had prepared on its behalf or used
or referred to, and agrees that it will not prepare or have prepared on its behalf or use or refer to, any Free Writing Prospectus, and has not distributed and will not distribute any written materials in connection with the offer or sale of the
Registrable Securities without the prior express written consent of the Company. Any such Free Writing Prospectus consented to by the Company is hereinafter referred to as a “Permitted Free Writing Prospectus.” The Company
represents and agrees that it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus, including in respect of timely filing with the SEC, legends and record-keeping. 

(l) Majorities. Any reference herein to a majority of Holders or Electing Holders shall be deemed to refer to a majority of the
relevant aggregate principal amount of the outstanding Registrable Securities of each series and any reference herein to a majority of Electing Holders shall be deemed to refer to a majority of the relevant aggregate principal amount of the
outstanding Registrable Securities the Holder of which is an Electing Holder with respect to such Registrable Securities; provided that whenever the 

 
consent or approval of Holders or Electing Holders is required hereunder, any Registrable Securities owned directly or indirectly by the Company or any of its affiliates shall not be counted in
determining whether such consent or approval was given by the required majority. 
 [Signature Page Follows] 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above. 
  

			
	SBA COMMUNICATIONS CORPORATION
		
	By:	 	 /s/ Thomas P. Hunt

			
	Name: Thomas P. Hunt
	Title: Senior Vice President, Chief Administrative Officer and General Counsel
	
	SBA TELECOMMUNICATIONS, INC.
		
	By:	 	 /s/ Thomas P. Hunt

			
	Name: Thomas P. Hunt
	Title: Senior Vice President and General Counsel

  
 [Signature
Page to the Registration Rights Agreement] 

 Confirmed and accepted as of the date first above written: 

 

			
	J.P. MORGAN SECURITIES LLC
	
	 By: /s/ Jessica Kearns

	Name: Jessica Kearns
	Title: Managing Director

 For itself and as Representative of the other Initial Purchasers. 

  
 [Signature
Page to the Registration Rights Agreement] 

 Schedule 1 
 Guarantor 
 SBA Communications Corporation 

 Schedule 2 
 Initial Purchasers 
 J.P. Morgan Securities LLC 

Barclays Capital Inc. 
 Citigroup Global
Markets Inc. 
 Deutsche Bank Securities Inc. 
 RBS Securities Inc. 
 TD Securities (USA) LLC 

Wells Fargo Securities, LLC 
 Raymond
James & Associates, Inc. 
 SunTrust Robinson Humphrey, Inc.Multifamily Loan and Security Agreement

 Exhibit 10.39 
 MULTIFAMILY LOAN AND SECURITY AGREEMENT 
 (NON-RECOURSE) 

BY AND BETWEEN 
 KBS LEGACY PARTNERS GREER LLC, 
 a Delaware limited liability company

 AND 
 BERKELEY POINT CAPITAL LLC, 
 a Delaware limited liability company

 DATED AS OF 
 May 3, 2012 
  
 

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	ARTICLE 1     - DEFINITIONS; SUMMARY OF MORTGAGE LOAN TERMS	  	 	1	  
			
	 Section 1.01
	 	Defined Terms	  	 	1	  
			
	 Section 1.02
	 	Schedules, Exhibits and Attachments Incorporated	  	 	1	  
		
	ARTICLE 2     - GENERAL MORTGAGE LOAN TERMS	  	 	1	  
			
	 Section 2.01
	 	Mortgage Loan Origination and Security	  	 	1	  
			
	 (a)
	 	Making of Mortgage Loan	  	 	1	  
			
	 (b)
	 	Security for Mortgage Loan	  	 	2	  
			
	 (c)
	 	Protective Advances	  	 	2	  
			
	 Section 2.02
	 	Payments on Mortgage Loan	  	 	2	  
			
	 (a)
	 	Debt Service Payments	  	 	2	  
			
	 (b)
	 	Capitalization of Accrued But Unpaid Interest	  	 	3	  
			
	 (c)
	 	Late Charges	  	 	3	  
			
	 (d)
	 	Default Rate	  	 	3	  
			
	 (e)
	 	Address for Payments	  	 	5	  
			
	 (f)
	 	Application of Payments	  	 	5	  
			
	 Section 2.03
	 	Lockout/Prepayment	  	 	5	  
			
	 (a)
	 	Prepayment; Prepayment Lockout; Prepayment Premium	  	 	5	  
			
	 (b)
	 	Voluntary Prepayment in Full	  	 	5	  
			
	 (c)
	 	Acceleration of Mortgage Loan	  	 	6	  
			
	 (d)
	 	Application of Collateral	  	 	6	  
			
	 (e)
	 	Casualty and Condemnation	  	 	7	  
			
	 (f)
	 	No Effect on Payment Obligations	  	 	7	  
			
	 (g)
	 	Loss Resulting from Prepayment	  	 	7	  
		
	ARTICLE 3     - PERSONAL LIABILITY	  	 	7	  
			
	 Section 3.01
	 	Non-Recourse Mortgage Loan; Exceptions	  	 	7	  
			
	 Section 3.02
	 	Personal Liability of Borrower (Exceptions to Non-Recourse Provision)	  	 	8	  
			
	 (a)
	 	Personal Liability Based on Lender’s Loss	  	 	8	  
			
	 (b)
	 	Full Personal Liability for Mortgage Loan	  	 	8	  
			
	 Section 3.03
	 	Personal Liability for Indemnity Obligations	  	 	9	  
			
	 Section 3.04
	 	Lender’s Right to Forego Rights Against Mortgaged Property	  	 	9	  

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page i
	 Fannie Mae
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

							
	ARTICLE 4     - BORROWER STATUS	  	 	9	  
			
	 Section 4.01
	  	Representations and Warranties	  	 	9	  
			
	 (a)
	  	Due Organization and Qualification	  	 	10	  
			
	 (b)
	  	Location	  	 	10	  
			
	 (c)
	  	Power and Authority	  	 	10	  
			
	 (d)
	  	Due Authorization	  	 	10	  
			
	 (e)
	  	Valid and Binding Obligations	  	 	10	  
			
	 (f)
	  	Effect of Mortgage Loan on Borrower’s Financial Condition	  	 	10	  
			
	 (g)
	  	Economic Sanctions, Anti-Money Laundering and Anti-Corruption	  	 	11	  
			
	 (h)
	  	Borrower Single Asset Status	  	 	12	  
			
	 (i)
	  	No Bankruptcies or Judgments	  	 	12	  
			
	 (j)
	  	No Litigation	  	 	13	  
			
	 (k)
	  	Payment of Taxes, Assessments and Other Charges	  	 	13	  
			
	 (l)
	  	Not a Foreign Person	  	 	13	  
			
	 (m)
	  	ERISA	  	 	13	  
			
	 (n)
	  	Default Under Other Obligations	  	 	14	  
			
	 (o)
	  	Prohibited Person	  	 	14	  
			
	 Section 4.02
	  	Covenants	  	 	14	  
			
	 (a)
	  	Maintenance of Existence; Organizational Documents	  	 	14	  
			
	 (b)
	  	Economic Sanctions and Anti-Money Laundering	  	 	15	  
			
	 (c)
	  	Payment of Taxes, Assessments and Other Charges	  	 	16	  
			
	 (d)
	  	Borrower Single Asset Status	  	 	16	  
			
	 (e)
	  	ERISA	  	 	16	  
			
	 (f)
	  	Notice of Litigation or Insolvency	  	 	17	  
			
	 (g)
	  	Payment of Costs, Fees, and Expenses	  	 	17	  
		
	 ARTICLE 5     - THE MORTGAGE LOAN
	  	 	18	  
			
	 Section 5.01
	  	Representations and Warranties	  	 	18	  
			
	 (a)
	  	Receipt and Review of Loan Documents	  	 	18	  
			
	 (b)
	  	No Default	  	 	18	  
			
	 Section 5.02
	  	Covenants	  	 	18	  
			
	 (a)
	  	Ratification of Covenants; Estoppels; Certifications	  	 	19	  
			
	 (b)
	  	Further Assurances	  	 	19	  

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page ii
	 Fannie Mae
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

							
			
	 (c)
	  	Sale of Mortgage Loan	  	 	20	  
			
	 (d)
	  	Limitations on Further Acts of Borrower	  	 	20	  
			
	 (e)
	  	Financing Statements; Record Searches	  	 	20	  
		
	 ARTICLE 6     - PROPERTY USE, PRESERVATION AND MAINTENANCE
	  	 	21	  
			
	 Section 6.01
	  	Representations and Warranties	  	 	21	  
			
	 (a)
	  	Compliance with Law; Permits and Licenses	  	 	21	  
			
	 (b)
	  	Property Characteristics	  	 	21	  
			
	 (c)
	  	Property Ownership	  	 	22	  
			
	 Section 6.02
	  	Covenants	  	 	22	  
			
	 (a)
	  	Use of Property	  	 	22	  
			
	 (b)
	  	Property Maintenance	  	 	22	  
			
	 (c)
	  	Property Preservation	  	 	24	  
			
	 (d)
	  	Property Inspections	  	 	24	  
			
	 (e)
	  	Compliance with Laws	  	 	25	  
			
	 Section 6.03
	  	Mortgage Loan Administration Matters Regarding the Property	  	 	25	  
			
	 (a)
	  	Property Management	  	 	25	  
			
	 (b)
	  	Subordination of Fees to Affiliated Property Managers	  	 	25	  
			
	 (c)
	  	Physical Needs Assessment	  	 	26	  
		
	 ARTICLE 7     - LEASES AND RENTS
	  	 	26	  
			
	 Section 7.01
	  	Representations and Warranties	  	 	26	  
			
	 (a)
	  	Prior Assignment of Rents	  	 	26	  
			
	 (b)
	  	Prepaid Rents	  	 	26	  
			
	 Section 7.02
	  	Covenants	  	 	26	  
			
	 (a)
	  	Leases	  	 	26	  
			
	 (b)
	  	Commercial Leases	  	 	27	  
			
	 (c)
	  	Payment of Rents	  	 	28	  
			
	 (d)
	  	Assignment of Rents	  	 	28	  
			
	 (e)
	  	Further Assignments of Leases and Rents	  	 	28	  
			
	 (f)
	  	Options to Purchase by Tenants	  	 	28	  
			
	 Section 7.03
	  	Mortgage Loan Administration Regarding Leases and Rents	  	 	29	  
			
	 (a)
	  	Material Commercial Lease Requirements	  	 	29	  
			
	 (b)
	  	Residential Lease Requirements	  	 	29	  

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page iii
	 Fannie Mae
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

							
	 ARTICLE 8     - BOOKS AND RECORDS; FINANCIAL REPORTING
	  	 	29	  
			
	 Section 8.01
	  	Representations and Warranties	  	 	29	  
			
	 (a)
	  	Financial Information	  	 	30	  
			
	 (b)
	  	No Change in Facts or Circumstances	  	 	30	  
			
	 Section 8.02
	  	Covenants	  	 	30	  
			
	 (a)
	  	Obligation to Maintain Accurate Books and Records	  	 	30	  
			
	 (b)
	  	Items to Furnish to Lender	  	 	30	  
			
	 (c)
	  	Delivery of Books and Records	  	 	32	  
			
	 Section 8.03
	  	Mortgage Loan Administration Matters Regarding Books and Records and Financial Reporting	  	 	32	  
			
	 (a)
	  	Right to Audit Books and Records	  	 	32	  
			
	 (b)
	  	Credit Reports; Credit Score	  	 	32	  
		
	 ARTICLE 9       - INSURANCE
	  	 	32	  
			
	 Section 9.01
	  	Representations and Warranties	  	 	32	  
			
	 (a)
	  	Compliance with Insurance Requirements	  	 	33	  
			
	 (b)
	  	Property Condition	  	 	33	  
			
	 Section 9.02
	  	Covenants	  	 	33	  
			
	 (a)
	  	Insurance Requirements	  	 	33	  
			
	 (b)
	  	Delivery of Policies, Renewals, Notices and Proceeds	  	 	33	  
			
	 Section 9.03
	  	Mortgage Loan Administration Matters Regarding Insurance	  	 	34	  
			
	 (a)
	  	Lender’s Ongoing Insurance Requirements	  	 	34	  
			
	 (b)
	  	Application of Proceeds on Event of Loss	  	 	35	  
			
	 (c)
	  	Payment Obligations Unaffected	  	 	37	  
			
	 (d)
	  	Foreclosure Sale	  	 	37	  
			
	 (e)
	  	Appointment of Lender as Attorney-In-Fact	  	 	37	  
		
	 ARTICLE 10       - CONDEMNATION
	  	 	37	  
			
	 Section 10.01
	  	Representations and Warranties	  	 	37	  
			
	 (a)
	  	Prior Condemnation Action	  	 	37	  
			
	 (b)
	  	Pending Condemnation Actions	  	 	38	  
			
	 Section 10.02
	  	Covenants	  	 	38	  
			
	 (a)
	  	Notice of Condemnation	  	 	38	  
			
	 (b)
	  	Condemnation Proceeds	  	 	38	  
			
	 Section 10.03
	  	Mortgage Loan Administration Matters Regarding Condemnation	  	 	38	  

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page iv
	 Fannie Mae
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

							
			
	 (a)
	  	Application of Condemnation Awards	  	 	38	  
			
	 (b)
	  	Payment Obligations Unaffected	  	 	38	  
			
	 (c)
	  	Appointment of Lender as Attorney-In-Fact	  	 	38	  
			
	 (d)
	  	Application of Proceeds	  	 	39	  
		
	 ARTICLE 11  - LIENS, TRANSFERS AND ASSUMPTIONS
	  	 	39	  
			
	 Section 11.01
	  	Representations and Warranties	  	 	39	  
			
	 (a)
	  	No Labor or Materialmen’s Claims	  	 	39	  
			
	 (b)
	  	No Other Interests	  	 	39	  
			
	 Section 11.02
	  	Covenants	  	 	39	  
			
	 (a)
	  	Liens; Encumbrances	  	 	39	  
			
	 (b)
	  	Transfers	  	 	40	  
			
	 Section 11.03
	  	Mortgage Loan Administration Matters Regarding Liens, Transfers and Assumptions	  	 	42	  
			
	 (a)
	  	Assumption of Mortgage Loan	  	 	42	  
			
	 (b)
	  	Transfers to Key Principal-Owned Affiliates or Guarantor-Owned Affiliates	  	 	43	  
			
	 (c)
	  	Estate Planning	  	 	43	  
			
	 (d)
	  	Termination or Revocation of Trust	  	 	44	  
			
	 (e)
	  	Death of Key Principal or Guarantor	  	 	44	  
			
	 (f)
	  	Bankruptcy of Guarantor	  	 	45	  
			
	 (g)
	  	Further Conditions to Transfers and Assumption	  	 	46	  
			
	 (h)
	  	Permitted Transfers	  	 	47	  
		
	 ARTICLE 12  - IMPOSITIONS
	  	 	48	  
			
	 Section 12.01
	  	Representations and Warranties	  	 	48	  
			
	 (a)
	  	Payment of Taxes, Assessments and Other Charges	  	 	48	  
			
	 Section 12.02
	  	Covenants	  	 	48	  
			
	 (a)
	  	Imposition Deposits, Taxes, and Other Charges	  	 	48	  
			
	 Section 12.03
	  	Mortgage Loan Administration Matters Regarding Impositions	  	 	49	  
			
	 (a)
	  	Maintenance of Records by Lender	  	 	49	  
			
	 (b)
	  	Imposition Accounts	  	 	49	  
			
	 (c)
	  	Payment of Impositions; Sufficiency of Imposition Deposits	  	 	49	  
			
	 (d)
	  	Imposition Deposits Upon Event of Default	  	 	50	  
			
	 (e)
	  	Contesting Impositions	  	 	50	  

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page v
	 Fannie Mae
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

							
			
	 (f)
	  	Release to Borrower	  	 	50	  
		
	 ARTICLE 13  - REPLACEMENT RESERVE AND REPAIRS
	  	 	51	  
			
	 Section 13.01
	  	Covenants	  	 	51	  
			
	 (a)
	  	Initial Deposits to Replacement Reserve Account and Repairs Escrow Account	  	 	51	  
			
	 (b)
	  	Monthly Replacement Reserve Deposits	  	 	51	  
			
	 (c)
	  	Payment for Replacements and Repairs	  	 	51	  
			
	 (d)
	  	Assignment of Contracts for Replacements and Repairs	  	 	51	  
			
	 (e)
	  	Indemnification	  	 	51	  
			
	 (f)
	  	Amendments to Loan Documents	  	 	52	  
			
	 (g)
	  	Administrative Fees and Expenses	  	 	52	  
			
	 Section 13.02
	  	Mortgage Loan Administration Matters Regarding Reserves	  	 	52	  
			
	 (a)
	  	Accounts, Deposits, and Disbursements	  	 	52	  
			
	 (b)
	  	Approvals of Contracts; Assignment of Claims	  	 	58	  
			
	 (c)
	  	Delays and Workmanship	  	 	59	  
			
	 (d)
	  	Appointment of Lender as Attorney-In-Fact	  	 	59	  
			
	 (e)
	  	No Lender Obligation	  	 	59	  
			
	 (f)
	  	No Lender Warranty	  	 	60	  
		
	 ARTICLE 14  - DEFAULTS/REMEDIES
	  	 	60	  
			
	 Section 14.01
	  	Events of Default	  	 	60	  
			
	 (a)
	  	Automatic Events of Default	  	 	60	  
			
	 (b)
	  	Events of Default Subject to a Specified Cure Period	  	 	61	  
			
	 (c)
	  	Events of Default Subject to Extended Cure Period	  	 	62	  
			
	 Section 14.02
	  	Remedies	  	 	62	  
			
	 (a)
	  	Acceleration; Foreclosure	  	 	62	  
			
	 (b)
	  	Loss of Right to Receive Replacement Reserve Disbursements and Repairs Disbursements	  	 	62	  
			
	 (c)
	  	Remedies Cumulative	  	 	63	  
			
	 Section 14.03
	  	Additional Lender Rights; Forbearance	  	 	63	  
			
	 (a)
	  	No Effect Upon Obligations	  	 	63	  
			
	 (b)
	  	No Waiver of Rights or Remedies	  	 	64	  
			
	 (c)
	  	Appointment of Lender as Attorney-in-Fact	  	 	64	  
			
	 Section 14.04
	  	Waiver of Marshaling	  	 	66	  

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page vi
	 Fannie Mae
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

							
	 ARTICLE 15  - MISCELLANEOUS
	  	 	66	  
			
	 Section 15.01
	  	Governing Law; Consent to Jurisdiction and Venue	  	 	66	  
			
	 (a)
	  	Governing Law	  	 	66	  
			
	 (b)
	  	Venue	  	 	66	  
			
	 Section 15.02
	  	Notice	  	 	67	  
			
	 (a)
	  	Process of Serving Notice	  	 	67	  
			
	 (b)
	  	Change of Address	  	 	67	  
			
	 (c)
	  	Default Method of Notice	  	 	67	  
			
	 (d)
	  	Receipt of Notices	  	 	67	  
			
	 Section 15.03
	  	Successors and Assigns Bound; Sale of Mortgage Loan	  	 	68	  
			
	 (a)
	  	Binding Agreement	  	 	68	  
			
	 (b)
	  	Sale of Mortgage Loan; Change of Servicer	  	 	68	  
			
	 Section 15.04
	  	Counterparts	  	 	68	  
			
	 Section 15.05
	  	Joint and Several (or Solidary) Liability	  	 	68	  
			
	 Section 15.06
	  	Relationship of Parties; No Third Party Beneficiary	  	 	68	  
			
	 (a)
	  	Solely Creditor and Debtor	  	 	68	  
			
	 (b)
	  	No Third Party Beneficiaries	  	 	68	  
			
	 Section 15.07
	  	Severability; Entire Agreement; Amendments	  	 	69	  
			
	 Section 15.08
	  	Construction	  	 	69	  
			
	 Section 15.09
	  	Mortgage Loan Servicing	  	 	70	  
			
	 Section 15.10
	  	Disclosure of Information	  	 	70	  
			
	 Section 15.11
	  	Waiver; Conflict	  	 	70	  
			
	 Section 15.12
	  	Determinations by Lender	  	 	70	  
			
	 Section 15.13
	  	Subrogation	  	 	71	  
			
	 Section 15.14
	  	Counting of Days	  	 	71	  
			
	 Section 15.15
	  	Revival and Reinstatement of Indebtedness	  	 	71	  
			
	 Section 15.16
	  	Time is of the Essence	  	 	71	  
			
	 Section 15.17
	  	Final Agreement	  	 	71	  
			
	 Section 15.18
	  	WAIVER OF TRIAL BY JURY	  	 	72	  

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page vii
	 Fannie Mae
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 SCHEDULES & EXHIBITS 

 

					
	 Schedules
	  		  	
	 Schedule 1
	  	Definitions Schedule (required)	  	Form 6101.FR
	 Schedule 2
	  	Summary of Loan Terms (required)	  	Form 6102.FR
	 Schedule 3
	  	Interest Rate Type Provisions (required)	  	Form 6103.FR
	 Schedule 4
	  	Prepayment Premium Schedule (required)	  	Form 6104.01
	 Schedule 5
	  	Required Replacement Schedule (required)	  	
	 Schedule 6
	  	Required Repair Schedule (required)	  	
	 Schedule 7
	  	Exceptions to Representations and Warranties Schedule (required)	  	
			
	 Exhibits
	  		  	
	 Exhibit A
	  	Modifications to Loan Agreement – Waiver of Imposition Deposits	  	Form 6228

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page viii
	 Fannie Mae
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 MULTIFAMILY LOAN AND SECURITY AGREEMENT 

(Non-Recourse) 
 This MULTIFAMILY LOAN AND SECURITY AGREEMENT (as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”) is made as of the Effective Date
(as hereinafter defined) by and between KBS LEGACY PARTNERS GREER LLC, a Delaware limited liability company (“Borrower”), and BERKELEY POINT CAPITAL LLC, a Delaware limited liability company (“Lender”). 

RECITALS: 
 WHEREAS, Borrower desires to obtain the Mortgage Loan (as hereinafter defined) from Lender to be secured by the Mortgaged Property (as hereinafter defined); and 

WHEREAS, Lender is willing to make the Mortgage Loan on the terms and conditions contained in this Loan Agreement and in the other Loan
Documents (as hereinafter defined); 
 NOW, THEREFORE, in consideration of the making of the Mortgage Loan by Lender and other
good and valuable consideration, the receipt and adequacy of which are hereby conclusively acknowledged, the parties hereby covenant, agree, represent and warrant as follows: 
 AGREEMENTS: 
 ARTICLE 1 - DEFINITIONS; SUMMARY OF MORTGAGE LOAN
TERMS 
 Section 1.01     Defined Terms. 

Capitalized terms not otherwise defined in the body of this Loan Agreement shall have the meanings set forth in the Definitions Schedule
attached as Schedule 1 to this Loan Agreement. 
 Section 1.02     Schedules, Exhibits and Attachments
Incorporated. 
 The schedules, exhibits and any other addenda or attachments are incorporated fully into this Loan
Agreement by this reference and each constitutes a substantive part of this Loan Agreement. 
 ARTICLE 2 - GENERAL MORTGAGE
LOAN TERMS 
 Section 2.01      Mortgage Loan Origination and Security. 

 

	 	(a)	Making of Mortgage Loan. 

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

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page 1
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	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

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

	 	(b)	Security for Mortgage Loan. 

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

	 	(c)	Protective Advances. 

 As
provided in the Security Instrument, Lender may take such actions or disburse such funds as Lender reasonably deems necessary to perform the obligations of Borrower under this Loan Agreement and the other Loan Documents and to protect Lender’s
interest in the Mortgaged Property. 
 Section 2.02      Payments on Mortgage Loan. 

 

	 	(a)	Debt Service Payments. 

  

	 	(1)	Short Month Interest. 

If the Effective Date is any day other than the first day of the month, interest for the period beginning on the Effective Date and
ending on and including the last day of the month in which the Effective Date occurs shall be payable by Borrower on the Effective Date. 
  

	 	(2)	Interest Accrual and Computation. 

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

	 	(3)	Monthly Debt Service Payments. 

 Consecutive monthly debt service installments (comprised of either interest only or principal and interest, depending on the Amortization Type), each in the amount of the applicable Monthly Debt Service
Payment, shall be due and payable on the First Payment Date, and on each Payment Date thereafter until the Maturity Date at which time all Indebtedness shall be due. Any regularly scheduled Monthly Debt Service Payment that is received by Lender
before the applicable Payment Date shall be deemed to have been received on such Payment Date solely for the purpose of calculating interest due. 

  

					
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	 (Non-Recourse)
	  	Form 6001.NR	  	Page 2
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(Alta Crescent Apartments) 

	 	(4)	Payment at Maturity. 

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

	 	(5)	Interest Rate Type. 

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

 

	 	(b)	Capitalization of Accrued But Unpaid Interest. 

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

	 	(c)	Late Charges. 

 (1)        If any Monthly Debt Service Payment (other than the payment due on the Maturity Date for repayment of the Mortgage Loan in full) due hereunder is not
received by Lender within five (5) days (or fifteen (15) days for any Mortgaged Property located in Mississippi or North Carolina to comply with applicable law) after the applicable Payment Date, or if any other amount payable under this
Loan Agreement or any other Loan Document is not received by Lender within five (5) days (or fifteen (15) days for any Mortgaged Property located in Mississippi or North Carolina to comply with applicable law) after the date such amount is
due, inclusive of the date on which such amount is due, Borrower shall pay to Lender, immediately and without demand by Lender, the Late Charge. 
 The Late Charge is payable in addition to, and not in lieu of, any interest payable at the Default Rate pursuant to Section 2.02(d). 

(2)        Borrower acknowledges and agrees that: 

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

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

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

 

	 	(d)	Default Rate. 

  

					
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	  	Form 6001.NR	  	Page 3
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(Alta Crescent Apartments) 

 (1)        Default interest shall be
paid as follows: 
 (A)        If any amount due on the
Mortgage Loan (other than amounts due on the Maturity Date) remains past due for thirty (30) days or more, interest on such unpaid amount(s) shall accrue from the date payment is due at the Default Rate and shall be payable upon demand by
Lender. 
 (B)        If any principal, Accrued
Interest or other Indebtedness due on the Mortgage Loan is not paid in full on the Maturity Date, then interest shall accrue at the Default Rate on all such unpaid amounts from the Maturity Date until fully paid and shall be payable upon demand by
Lender. 
 Absent a demand by Lender, any such amounts shall be payable by Borrower in the same manner as provided for the
payment of Monthly Debt Service Payments. To the extent permitted by applicable law, interest shall also accrue at the Default Rate on any judgment obtained by Lender against Borrower in connection with the Mortgage Loan. 

(2)        Borrower acknowledges and agrees that: 

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

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

(i)       Lender’s risk of nonpayment of the Mortgage Loan will
be materially increased; 
 (ii)      Lender’s ability to
meet its other obligations and to take advantage of other investment opportunities will be adversely impacted; 
 (iii)     Lender will incur additional costs and expenses arising from its loss of the use of the amounts due; 

(iv)     it is extremely difficult and impractical to determine such additional
costs and expenses; 
 (v)      Lender is entitled to be
compensated for such additional risks, costs and expenses; and 

(vi)     the increase from the Interest Rate to the Default Rate represents a
fair and reasonable estimate of the additional risks, costs and expenses Lender will incur by reason of Borrower’s delinquent payment and the additional compensation Lender is entitled to receive for the increased risks of nonpayment associated
with a delinquency on the 

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page 4
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(Alta Crescent Apartments) 

 
Mortgage Loan (taking into account all circumstances existing on the Effective Date). 
  

	 	(e)	Address for Payments. 

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

	 	(f)	Application of Payments. 

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

Section 2.03      Lockout/Prepayment. 

 

	 	(a)	Prepayment; Prepayment Lockout; Prepayment Premium. 

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

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

	 	(b)	Voluntary Prepayment in Full. 

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

(1)        Borrower delivers to Lender a Prepayment Notice
specifying the Intended Prepayment Date not more than sixty (60) days, but not less than thirty (30) days (if 

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page 5
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(Alta Crescent Apartments) 

 
given via U.S. Postal Service) or twenty (20) days (if given via facsimile, e-mail or overnight courier) prior to such Intended Prepayment Date; and 

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

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

 (B)        all Accrued Interest (calculated through the last day of
the month in which the prepayment occurs); plus 
 (C)        the
Prepayment Premium; plus 
 (D)        all other Indebtedness.

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

	 	(c)	Acceleration of Mortgage Loan. 

 Upon acceleration of the Mortgage Loan, Borrower shall pay to Lender: 
 (1)        the entire unpaid principal balance of the Mortgage Loan; 
 (2)        all Accrued Interest (calculated through the last day of the month in which the acceleration occurs); 

(3)        the Prepayment Premium; and 

(4)        all other Indebtedness. 

 

	 	(d)	Application of Collateral. 

 Any application by Lender of any collateral or other security to the repayment of all or any portion of the unpaid principal balance of the Mortgage Loan prior to the Maturity Date in accordance with the
Loan Documents shall be deemed to be a prepayment by Borrower. Any 

  

					
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such prepayment shall require the payment to Lender by Borrower of the Prepayment Premium calculated on the amount being prepaid in accordance with this Loan Agreement. 

 

	 	(e)	Casualty and Condemnation. 

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

	 	(f)	No Effect on Payment Obligations. 

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

 

	 	(g)	Loss Resulting from Prepayment. 

 Borrower acknowledges and agrees that: 

(1)        any prepayment of the unpaid principal balance of the
Mortgage Loan, whether voluntary or involuntary, or resulting from a default by Borrower, will result in Lender’s incurring loss, including reinvestment loss, additional risk, expense and frustration or impairment of Lender’s ability to
meet its commitments to third parties; 
 (2)        it
is extremely difficult and impractical to ascertain the extent of such losses, risks and damages; 
 (3)        the formula for calculating the Prepayment Premium represents a reasonable estimate of the losses, risks and damages Lender will incur as a result of a
prepayment; and 
 (4)        the provisions regarding
the Prepayment Premium contained in this Loan Agreement are a material part of the consideration for the Mortgage Loan, and that the terms of the Mortgage Loan are in other respects more favorable to Borrower as a result of Borrower’s voluntary
agreement to such prepayment provisions. 
 ARTICLE 3 - PERSONAL LIABILITY 

Section 3.01    Non-Recourse Mortgage Loan; Exceptions. 

Except as otherwise provided in this Article 3 or in any other Loan Document, none of Borrower, or any member, manager, partner,
director, officer or employee of Borrower or thereof, shall have personal liability under this Loan Agreement or any other Loan Document for the repayment of the Indebtedness or for the performance of any other obligations of Borrower under the Loan
Documents, and Lender’s only recourse for the satisfaction of such Indebtedness and the performance of such obligations shall be Lender’s exercise of its rights and remedies 

  

					
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with respect to the Mortgaged Property and any other collateral held by Lender as security for the Indebtedness. This limitation on Borrower’s liability shall not limit or impair
Lender’s enforcement of its rights against any Guarantor under any Loan Document. 

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

 

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

 Borrower shall be personally liable to Lender for the repayment of the portion of the Indebtedness equal to any loss or damage suffered by Lender as a result of: 

(1)        failure to pay to Lender upon demand after an Event of
Default, all Rents to which Lender is entitled under the Loan Documents and the amount of all security deposits collected by Borrower from tenants; 

(2)        failure to maintain all insurance policies required by
the Loan Documents; 
 (3)        failure to apply all
insurance proceeds and any condemnation award as required by the Loan Documents; 

(4)        failure to comply with any provision of this Loan
Agreement or any other Loan Document relating to the delivery of books and records, statements, schedules and reports; 
 (5)        failure to apply Rents to the ordinary and necessary expenses of owning and operating the Mortgaged Property (other than property management fees that
are not currently payable pursuant to the terms of any collateral assignment of property management agreement required by Lender), and to Debt Service Amounts, except that Borrower will not be personally liable with respect to Rents that are
distributed in any calendar year if Borrower has paid all ordinary and necessary expenses of owning and operating the Mortgaged Property and Debt Service Amounts for the calendar year that such Rents are attributable; or 

(6)        waste or abandonment of the Mortgaged Property;

 provided, however, Borrower shall not have personal liability under clauses (1), (3), or (5) above to the extent that
Borrower lacks the legal right to direct the disbursement of the applicable funds due to an involuntary Bankruptcy Event that occurs without the consent, encouragement or active participation of Guarantor, Key Principal or Borrower Affiliate.

  

	 	(b)	Full Personal Liability for Mortgage Loan. 

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

 (1)        failure by Borrower to comply with the
single-asset entity requirements of this Loan Agreement or any other Loan Document; 

  

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

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

(4)        fraud or written material misrepresentation by
Borrower, Guarantor, Key Principal, or any officer, director, partner, member, or shareholder of Borrower, Guarantor, or Key Principal or material omission in connection with: any application for or creation of the Indebtedness, on-going financial
or other reporting, or any request for action or consent by Lender. 
 Section 3.03      Personal
Liability for Indemnity Obligations. 
 Borrower shall be personally and fully liable to Lender for Borrower’s
indemnity obligations under Section 13.01(e), the Environmental Indemnity Agreement and any other indemnity provided by Borrower under any other Loan Document. Borrower’s liability for such indemnity obligations shall not be limited by the
amount of the Indebtedness, the repayment of the Indebtedness, or otherwise. 

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

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

 ARTICLE 4 - BORROWER STATUS 
 Section 4.01      Representations and Warranties. 
 The representations and warranties made by Borrower to Lender in this Section 4.01 are made as of the Effective Date, and are true and correct except as disclosed on the Exceptions to Representations
and Warranties Schedule. 

  

					
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	 	(a)	Due Organization and Qualification. 

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

	 	(b)	Location. 

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

 

	 	(c)	Power and Authority. 

Borrower has the requisite power and authority: 

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

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

	 	(d)	Due Authorization. 

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

 

	 	(e)	Valid and Binding Obligations. 

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

 

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

  

					
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 Borrower is not presently Insolvent and the Mortgage Loan will not render Borrower
Insolvent. Borrower has sufficient working capital, including proceeds from the Mortgage Loan, cash flow from the Mortgaged Property, or other sources, not only to adequately maintain the Mortgaged Property, but also to pay all of Borrower’s
outstanding debts as they come due, including all Debt Service Amounts. 
  

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

None of Borrower, any Guarantor, any Key Principal, or any Principal, nor to Borrower’s knowledge, its general
partners, managing members, managers (if non-member managed), or any Person owning a Controlling Interest in or controlling any of them: 
 (1)        is in violation of: 
 (A)        any applicable anti-money laundering laws, including those contained in the Bank Secrecy Act; 

(B)        any applicable economic sanction laws administered by
OFAC or by the United States Department of State; or 

(C)        any applicable anti-drug trafficking, anti-terrorism,
or anti-corruption laws, civil or criminal; or 

(2)        is a Person: 

(A)        that is charged with, or has reason to believe that
he, she or it is under investigation for, any violation of any such laws; 

(B)        that has been convicted of any violation of, has been
subject to civil penalties pursuant to, or had any of its property seized or forfeited under any such laws; 
 (C)        named on the list of “Specially Designated Nationals or Blocked Persons” maintained by OFAC (or any successor United States government office
or list), or any similar list maintained by the United States Department of State (or any successor United States government office or list); 
 (D)        with whom any United States Person, any entity organized under the laws of the United States or its constituent states or territories, or any entity,
regardless of where organized, having its principal place of business within the United States or any of its territories, is prohibited from transacting business of the type contemplated by this Loan Agreement and the other Loan Documents under any
other applicable law; or 
 (E)        that is owned,
controlled by, or affiliated with any Person identified in clause (A), (B), (C), and/or (D) of this Section 4.01(g)(2); or 

  

					
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 (3)        is in
violation of any obligation to maintain appropriate internal controls as required by the governing laws of the jurisdiction of such Person as are necessary to ensure compliance with the economic sanctions, anti-money laundering and anti-corruption
laws of the United States and the jurisdiction where the Person resides, is domiciled or has its principal place of business. 
  

	 	(h)	 Borrower Single Asset Status. 

 Borrower: 

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

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

(3)        has no material financial obligation under any
indenture, mortgage, deed of trust, deed to secure debt, loan agreement or other agreement or instrument to which Borrower is a party or by which Borrower or the Mortgaged Property is otherwise bound, other than unsecured obligations incurred in the
ordinary course of the operation of the Mortgaged Property and obligations under the Loan Documents and obligations secured by the Mortgaged Property to the extent permitted by the Loan Documents; 

(4)        has accurately maintained its financial statements,
accounting records and other partnership, real estate investment trust, limited liability company or corporate documents, as the case may be, separate from those of any other Person; 

(5)        has not commingled its assets or funds with those of
any other Person; 
 (6)        has been adequately
capitalized in light of its contemplated business operations; 

(7)        has not assumed, guaranteed or become obligated for
the liabilities of any other Person (except in connection with the Mortgage Loan or the endorsement of negotiable instruments in the ordinary course of business) or held out its credit as being available to satisfy the obligations of any other
Person; and 
 (8)        has not entered into, and was
not a party to, any transaction with any affiliate of any Person, except in the ordinary course of business and on terms which are no less favorable to any such Person than would be obtained in a comparable arm’s length transaction with an
unrelated third party. 
  

	 	(i)	 No Bankruptcies or Judgments. 

 None of Borrower, any Guarantor, any Key Principal, or any Principal, nor to Borrower’s knowledge, its general partners, managing members, managers (if non-member managed), or any Person owning a
Controlling Interest in any of them is currently: 

  

					
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 (1)        the subject of or a party
to any completed or pending bankruptcy, reorganization, including any receivership or other insolvency proceeding; 
 (2)        preparing or intending to be the subject of a Bankruptcy Event; or 

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

 

	 	(j)	No Litigation. 

 There
are no actions, suits or proceedings at law or in equity by or before any Governmental Authority now pending or, to Borrower’s knowledge, threatened against or affecting Borrower, any Guarantor, any Key Principal, any Principal or the Mortgaged
Property. 
  

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

 Borrower confirms that: 

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

(2)        it has paid all taxes, governmental charges and
assessments due and payable with respect to such returns and reports; 

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

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

	 	(l)	 Not a Foreign Person. 

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

	 	(m)	 ERISA. 

 Borrower acknowledges that: 

(1)        it has no Employee Benefit Plan and does not maintain
or sponsor an Employee Benefit Plan intended to meet the requirements of a “qualified plan” under Section 401(a) of the Internal Revenue Code; 

(2)        it does not maintain, sponsor or contribute to any
Employee Benefit Plan that is subject to Title IV of ERISA or Section 412 of the Internal Revenue Code; 

  

					
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 (3)        it has
not engaged in a non-exempt “prohibited transaction” described in Section 406 of ERISA or Section 4975 of the Internal Revenue Code that could result in an assessment of a civil penalty under Section 502(i) of ERISA or
excise tax under Section 4975 of the Internal Revenue Code and none of the assets of Borrower constitute “plan assets” (within the meaning of Department of Labor Regulation Section 2510.3 101) of any Employee Benefit Plan subject
to Title I of ERISA; 
 (4)        it has not incurred
any “withdrawal liability” and no “reportable event” has occurred (as such terms are described in Title IV of ERISA) with respect to any such Employee Benefit Plan, unless approved by the appropriate Governmental Authority;

 (5)        none of Borrower, any general partner,
manager (if non-member managed), or managing member of Borrower, or any Guarantor, Principal, or Key Principal, or any person under common control with Borrower, is or ever has been obligated to contribute to any “multiemployer plan” (as
defined in Section 3(37) of ERISA; and 

(6)        it has no unpaid obligations or liabilities that have
not been discharged arising under ERISA of a character which if unpaid or unperformed might result in the imposition of a Lien against any of its properties or assets, including satisfaction of any plan funding requirements. 

 

	 	(n)	 Default Under Other Obligations. 

(1)        The execution, delivery and performance of the
obligations imposed on Borrower under this Loan Agreement and the Loan Documents to which it is a party will not cause Borrower to be in default under the provisions of any agreement, judgment or order to which Borrower is a party or by which such
Borrower is bound. 
 (2)        None of Borrower, any
general partner, manager (if non-member managed) or managing member of Borrower, or any Guarantor, Principal or Key Principal is in default under any obligation to Lender. 

 

	 	(o)	 Prohibited Person. 

 None of Borrower, any Guarantor, any Key Principal or any Principal, nor to Borrower’s knowledge, its general partners, managing members, managers (if non-member managed) or any Person owning a
Controlling Interest in any of them is a Prohibited Person. 
 Section 4.02    Covenants.

  

	 	(a)	 Maintenance of Existence; Organizational Documents. 

Borrower shall maintain its existence, its entity status, franchises, rights and privileges under the laws of the state of its formation
or organization (as applicable). Borrower shall continue to be duly qualified and in good standing to transact business in each jurisdiction that qualification or standing is required according to applicable law to conduct its business with respect
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Borrower’s operation of the Mortgaged Property or the validity, enforceability or the ability of Borrower to perform its obligations under this Loan Agreement or any other Loan Document.
Borrower shall not make any material change to its organizational documents, including changes relating to control of, or the ability to oversee management and day-to-day operations of, Borrower, without Lender’s prior written consent.

  

	 	(b)	Economic Sanctions and Anti-Money Laundering. 

(1)        Borrower shall at all times remain, and shall cause
its general partners, managing members and managers (if non-member managed), and any Guarantor, Key Principal, Principal and any Person owning a Controlling Interest in or controlling any of them to remain, in compliance with: 

(A)        any applicable anti-money laundering laws, including
those contained in the Bank Secrecy Act; 

(B)        any applicable economic sanction laws administered by
OFAC or by the United States Department of State; and 

(C)        any applicable anti-drug trafficking, anti-terrorism,
or anti-corruption laws, civil or criminal. 

(2)        At no time shall Borrower, or its general partners,
managing members, managers (if non-member managed), any Guarantor, Key Principal, Principal, or any Person owning a Controlling Interest in or controlling any of them, be a Person: 

(A)        that is charged with, or has reason to believe that
he, she or it is under investigation for, any violation of any such laws; 

(B)        that has been convicted of any violation of, has been
subject to civil penalties pursuant to, or had any of its property seized or forfeited under, any such laws; 
 (C)        named on the list of “Specially Designated Nationals or Blocked Persons” maintained by OFAC (or any successor United States government office
or list), or any similar list maintained by the United States Department of State (or any successor United States government office or list); 
 (D)        with whom any United States Person, any entity organized under the laws of the United States or its constituent states or territories, or any entity,
regardless of where organized, having its principal place of business within the United States or any of its territories, is prohibited from transacting business of the type contemplated by this Loan Agreement and the other Loan Documents under any
other applicable law; or 
 (E)        that is owned,
controlled by or affiliated with any Person identified in clause (A), (B), (C), and/or (D) of this Section 4.02(b)(2)). 

  

					
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 (3)        At no
time shall Borrower, its general partners, managing members, managers, non-member managers, any Guarantor, Key Principal, Principal and any Person owning a Controlling Interest in or controlling any of them, be a Person in violation of any
obligation to maintain appropriate internal controls as required by the governing laws of the jurisdiction of such Person as are necessary to ensure compliance with the economic sanctions, anti-money laundering, and anti-corruption laws of the
United States and the jurisdiction where the Person resides, is domiciled or has its principal place of business. 
  

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

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

	 	(d)	 Borrower Single Asset Status. 

 Until the Indebtedness is fully paid, Borrower: 

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

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

(3)        shall not commingle its assets or funds with those of
any other Person unless such assets or funds can be segregated and identified; 

(4)        shall accurately maintain its financial statements,
accounting records and other partnership, real estate investment trust, limited liability company or corporate documents, as the case may be, separate from those of any other Person; 

(5)        shall not assume, guaranty or become obligated for,
the liabilities of any other Person (except in connection with the Mortgage Loan or the endorsement of negotiable instruments in the ordinary course of business) or hold out its credit as being available to satisfy the obligations of any other
Person; or 
 (6)        shall not enter into, or become
a party to, any transaction with any affiliate of any Person, except in the ordinary course of business and on terms which are no less favorable to any such Person than would be obtained in a comparable arm’s length transaction with an
unrelated third party. 
  

	 	(e)	 ERISA. 

 Borrower acknowledges that: 

  

					
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 (1)        it shall
not maintain or sponsor an Employee Benefit Plan or fail to comply with the requirements of a “qualified plan” under Section 401(a) of the Internal Revenue Code; 

(2)        it shall not maintain, sponsor or contribute to any
Employee Benefit Plan that is subject to Title IV of ERISA or Section 412 of the Internal Revenue Code; 
 (3)        it shall not engage in a non-exempt “prohibited transaction” described in Section 406 of ERISA or Section 4975 of the Internal
Revenue Code that could result in an assessment of a civil penalty under Section 502(i) of ERISA or excise tax under Section 4975 of the Internal Revenue Code, and none of the assets of Borrower shall constitute “plan assets”
(within the meaning of Department of Labor Regulation Section 2510.3 101) of any Employee Benefit Plan subject to Title I of ERISA; 
 (4)        it shall not incur any “withdrawal liability” or trigger a “reportable event” (as such terms are described in Title IV of ERISA) with
respect to any such Employee Benefit Plan, unless approved by the appropriate Governmental Authority; 
 (5)        none of Borrower, any general partner, manager, managing member or Principal of Borrower, or any Guarantor or Key Principal, or any person under common
control with Borrower, shall withdraw from any Employee Benefit Plan that is a “multiemployer plan” (as defined in Section 3(37) of ERISA); and 

(6)        it shall not incur any liabilities under ERISA that if
unpaid or unperformed might result in the imposition of a Lien against any of its properties or assets, including satisfaction of any plan funding requirements. 
  

	 	(f)	Notice of Litigation or Insolvency. 

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

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

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

  

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

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

(A)        the Mortgaged Property; 

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

(C)        the relationship between Lender, Borrower, Key
Principal and Guarantor in connection with this Loan Agreement or any of the transactions contemplated by this Loan Agreement; 
 (3)        the administration or enforcement of, or preservation of rights or remedies under, this Loan Agreement or any other Loan Documents including or in
connection with any litigation or appeals, any Foreclosure Event or other disposition of any collateral granted pursuant to the Loan Documents; 
 (4)        any Bankruptcy Event or Guarantor Bankruptcy Event; and 

(5)        any disclosure documents, including fees payable to
any rating agencies, including the reasonable fees and expenses of Lender’s attorneys and accountants. 
 ARTICLE 5
– THE MORTGAGE LOAN 
 Section 5.01    Representations and Warranties. 

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

	 	(a)	Receipt and Review of Loan Documents. 

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

	 	(b)	No Default. 

 No Event of
Default exists under any of the Loan Documents and the execution, delivery and performance of the obligations imposed on Borrower under the Loan Documents will not cause Borrower to be in default under the provisions of any agreement, judgment or
order to which Borrower is a party or by which Borrower is bound. 
 Section 5.02    Covenants. 

  

					
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	 	(a)	Ratification of Covenants; Estoppels; Certifications. 

 Borrower shall: 

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

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

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

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

 (C)        the date to which interest on the
Mortgage Loan has been paid; 
 (D)        that
Borrower is not in default in paying the Indebtedness or in performing or observing any of the covenants or agreements contained in this Loan Agreement or any of the other Loan Documents (or, if Borrower is in default, describing such default in
reasonable detail); 
 (E)        whether or not there
are then existing any setoffs or defenses known to Borrower against the enforcement of any right or remedy of Lender under the Loan Documents; and 

(F)        any additional facts requested by Lender. 

 

	 	(b)	Further Assurances. 

  

	 	(1)	Other Documents As Lender May Require. 

 Borrower shall execute, acknowledge and deliver, at its cost and expense, all further acts, deeds, conveyances, assignments, estoppel certificates, financing statements, 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 other Loan Documents. 

 

	 	(2)	Corrective Actions. 

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

  

					
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	 	(c)	Sale of Mortgage Loan. 

 Borrower shall: 

(1)        do anything necessary to comply with the requirements
of Lender or any Investor of the Mortgage Loan or provide, or cause to be provided, to Lender or any Investor of the Mortgage Loan, at Borrower’s cost and expense, such further documentation or information required by Lender or Investor, in
order to enable: 
 (A)        Lender to sell the
Mortgage Loan to such Investor; 
 (B)        Lender to
obtain a refund of any commitment fee from any such Investor; or 

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

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

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

 

	 	(d)	 Limitations on Further Acts of Borrower. 

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

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

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

	 	(e)	 Financing Statements; Record Searches. 

(1)        Borrower shall pay all filing costs and all costs and
expenses associated with any filing or recording of: 

  

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

(B)        any record searches for financing statements that
Lender may require. 
 (2)        Borrower hereby
authorizes Lender to file any financing statements, continuation statements, termination statements and amendments as Lender may require in order to protect and preserve Lender’s lien priority and security interest in the Mortgaged Property
(and to the extent Lender has filed any such financing statements, continuation statements or amendments prior to the Effective Date, such filings by Lender are hereby authorized and ratified by Borrower). 

ARTICLE 6 - PROPERTY USE, PRESERVATION AND MAINTENANCE 
 Section 6.01      Representations and Warranties. 
 The representations and warranties made by Borrower to Lender in this Section 6.01 are made as of the Effective Date, and are true and correct except as disclosed on the Exceptions to Representations
and Warranties Schedule. 
  

	 	(a)	Compliance with Law; Permits and Licenses. 

(1)        To Borrower’s knowledge, all improvements to the
Land and the use of the Mortgaged Property comply with all applicable laws, ordinances, statutes, rules and regulations, including all applicable statutes, rules and regulations pertaining to requirements for equal opportunity, anti-discrimination,
fair housing and environmental protection. 

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

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

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

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

	 	(b)	Property Characteristics. 

  

					
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 (1)        The
Mortgaged Property contains not less than: 

(A)        the Property Square Footage; 

(B)        the Total Parking Spaces; and 

(C)        the Total Residential Units. 

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

	 	(c)	Property Ownership. 

 Borrower is sole owner of the Mortgaged Property. 
 Section 6.02    
Covenants 
  

	 	(a)	Use of Property. 

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

(1)        allow changes in the use of all or any part of the
Mortgaged Property; 
 (2)        convert any individual
dwelling units or common areas to commercial use; 

(3)        initiate or acquiesce in a change in the zoning
classification of the Land; 
 (4)        establish any
condominium or cooperative regime with respect to the Mortgaged Property; or 

(5)        subdivide the Land. 

 

	 	(b)	Property Maintenance. 

Borrower shall: 
 (1)        pay the expenses of operating, managing, maintaining and repairing the Mortgaged Property (including insurance premiums, utilities, Repairs and
Replacements) before the last date upon which each such payment may be made without any penalty or interest charge being added; 
 (2)        keep the Mortgaged Property in good repair and marketable condition (including the replacement of Personalty and Fixtures with items of equal or better
function and quality) and subject to Section 9.03(b) and Section 10.03(d) restore or repair promptly, in a good and workmanlike manner, any damaged part of the Mortgaged Property to the equivalent of its original condition or condition
immediately prior to the 

  

					
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damage (if improved after the Effective Date), whether or not insurance proceeds are or any condemnation award is available to cover any costs of such restoration or repair; 

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

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

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

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

(4)        make, construct, install, diligently perform and
complete all Replacements and Repairs: 
 (A)        in
a good and workmanlike manner as soon as practicable following the commencement thereof, free and clear of any Liens, including mechanics’ or materialmen’s liens and encumbrances (except for Permitted Encumbrances); 

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

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

  

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

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

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

	 	(c)	Property Preservation. 

 Borrower shall: 

(1)        not commit waste, or abandon or permit impairment or
deterioration of the Mortgaged Property; 

(2)        except as otherwise permitted herein in connection
with Repairs and Replacements, not remove, demolish or alter the Mortgaged Property or any part of the Mortgaged Property (or permit any tenant or any other person to do the same) except in connection with the replacement of tangible Personalty or
Fixtures (provided such Personalty and Fixtures are replaced with items of equal or better function and quality); 
 (3)        not engage in or knowingly permit, and shall take appropriate measures to prevent and abate or cease and desist, any illegal activities at the Mortgaged
Property that could endanger tenants or visitors, result in damage to the Mortgaged Property, result in forfeiture of the Land or otherwise materially impair the lien created by the Security Instrument or Lender’s interest in the Mortgaged
Property; 
 (4)        not permit any condition to
exist on the Mortgaged Property that would invalidate any part of any insurance coverage required by this Loan Agreement; or 
 (5)        not subject the Mortgaged Property to any voluntary, elective or non-compulsory tax lien or assessment (or opt in to any voluntary, elective or
non-compulsory special tax district or similar regime). 
  

	 	(d)	Property Inspections. 

 Borrower shall: 

(1)        permit Lender, its agents, representatives and
designees to enter upon and inspect the Mortgaged Property (including in connection with any replacement, repair or environmental inspections), and shall cooperate and provide access to all areas of the Mortgaged Property (subject to the rights of
tenants under the Leases) during normal business hours or at such other reasonable time upon reasonable notice, and at any time after an Event of Default or when exigent circumstances exist; and 

  

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

	 	(e)	Compliance with Laws. 

 Borrower shall: 

(1)        comply with all laws, ordinances, statutes, rules and
regulations of any Governmental Authority and all recorded lawful covenants and agreements relating to or affecting the Mortgaged Property, including all laws, ordinances, statutes, rules and regulations and covenants pertaining to construction of
improvements on the Land, fair housing and requirements for equal opportunity, anti-discrimination, environmental protection and Leases; 
 (2)        maintain all required permits, licenses and certificates necessary to comply with all zoning and land use statutes, laws, ordinances, rules and
regulations, and all applicable health, fire, safety and building codes and for the lawful use and operation of the Mortgaged Property, including certificates of occupancy, apartment licenses or the equivalent; 

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

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

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

Section 6.03     Mortgage Loan Administration Matters Regarding the Property. 

 

	 	(a)	Property Management. 

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

	 	(b)	Subordination of Fees to Affiliated Property Managers. 

 Any Property Manager that is a Borrower Affiliate to whom fees are payable for the management of the Mortgaged Property must enter into a collateral agreement with Lender, in a

  

					
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form approved by Lender, providing for subordination of those fees and such other provisions as Lender may require. 

 

	 	(c)	Physical Needs Assessment. 

 If, in connection with any inspection of the Mortgaged Property, Lender determines that the condition of the Mortgaged Property has deteriorated since the Effective Date, Lender may obtain, at
Borrower’s expense, a physical needs assessment of the Mortgaged Property. Lender’s right to obtain a physical needs assessment pursuant to this Section 6.03(c) shall be in addition to any other rights available to Lender under this
Loan Agreement in connection with any such deterioration. Any such inspection or physical needs assessment may result in Lender requiring Additional Lender Repairs or Additional Lender Replacements as further described in
Section 13.02(a)(9)(B). 
 ARTICLE 7 - LEASES AND RENTS 
 Section 7.01     Representations and Warranties. 

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

	 	(a)	Prior Assignment of Rents. 

 Borrower has not executed any: 
 (1)
        prior assignment of Rents (other than an assignment of Rents securing prior indebtedness that has been paid off and discharged or will be paid off and discharged with the proceeds of the Mortgage
Loan); or 
 (2)         instrument which would prevent
Lender from exercising its rights under this Loan Agreement or the Security Instrument. 
  

	 	(b)	Prepaid Rents. 

 Borrower
has not accepted, and does not expect to receive prepayment of, any Rents for more than two (2) months prior to the due dates of such Rents. 
 Section 7.02     Covenants. 
  

	 	(a)	Leases. 

 Borrower shall:

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

  

					
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 (2)
        surrender possession of the Mortgaged Property, including all Leases and all security deposits and prepaid Rents, immediately upon appointment of a receiver or Lender’s entry upon and taking of
possession and control of the Mortgaged Property, as applicable; and 
 (3)
        promptly provide Lender a copy of any non-Residential Lease at the time such Lease is executed (subject to Lender’s consent rights for Material Commercial Leases in Section 7.02(b)), and,
upon Lender’s request, promptly provide Lender a copy of any Residential Lease then in effect as requested by Lender. 
  

	 	(b)	 Commercial Leases. 

(1)         With respect to Material Commercial Leases, Borrower
shall not: 
 (A)         enter into any Material
Commercial Lease except with the prior written consent of Lender and Lender’s written approval of such Material Commercial Lease; or 
 (B)         modify the terms of, extend or terminate any Material Commercial Lease (including any Material Commercial Lease in existence on the Effective Date)
without the prior written consent of Lender. 
 (2)
        With respect to any non-Material Commercial Lease, Borrower shall not: 
 (A)         enter into any non-Material Commercial Lease that materially alters the use and type of operation of the premises subject to the Lease in effect as of
the Effective Date, reduces the number or size of residential units at the Mortgaged Property or causes such non-Material Commercial Lease to be deemed a Material Commercial Lease; or 

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

(3)         With respect to any Material Commercial Lease or
non-Material Commercial Lease, Borrower shall cause the applicable tenant to provide within ten (10) days of the request, a certificate of estoppel, or if not provided by tenant within such ten (10) day period, Borrower shall provide such
certificate of estoppel, certifying: 
 (A)
        that such Material Commercial Lease or non-Material Commercial Lease is unmodified and in full force and effect (or if there have been modifications, that such Material Commercial Lease or non-Material
Commercial Lease is in full force and effect as modified and stating the modifications); 

  

					
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 (B)         the
term of the Lease including any extensions thereto; 
 (C)
        the dates to which the Rent and any other charges hereunder have been paid by tenant; 
 (D)         the amount of any security deposit delivered to Borrower as landlord; 

(E)         whether or not Borrower is in default (or whether
any event or condition exists which, with the passage of time, would constitute an event of default) under such Lease; 
 (F)         the address to which notices to tenant should be sent; and 

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

	 	(c)	 Payment of Rents. 

 Borrower shall: 
 (1)
        pay to Lender upon demand all Rents after the occurrence of an Event of Default; 
 (2)         shall cooperate with Lender’s efforts in connection with the assignment of Rents set forth in the Security Instrument; and 

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

	 	(d)	 Assignment of Rents. 

 Borrower shall not: 
 (1)
        perform any acts and shall not execute any instrument that would prevent Lender from exercising its rights under the assignment of Rents granted in the Security Instrument or in any other Loan
Document; or 
 (2)         interfere with Lender’s
collection of such Rents. 
  

	 	(e)	Further Assignments of Leases and Rents. 

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

	 	(f)	Options to Purchase by Tenants. 

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

  

					
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 Section 7.03       Mortgage Loan Administration Regarding Leases and
Rents. 
  

	 	(a)	Material Commercial Lease Requirements. 

 Each Material Commercial Lease, including any renewal or extension of any Material Commercial Lease in existence as of the Effective Date, shall provide, directly or pursuant to a subordination,
non-disturbance and attornment agreement approved by Lender, that: 
 (1)
        the tenant shall, upon written notice from Lender after the occurrence of an Event of Default, pay all Rents payable under such Lease to Lender; 

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

(4)         the tenant agrees to execute such further evidences
of attornment as Lender or any purchaser at a Foreclosure Event may from time to time request; and 
 (5)         such Lease shall not terminate as a result of a Foreclosure Event unless Lender or any other purchaser at such Foreclosure Event, but subject to the
terms of the subordination, non-disturbance and attornment agreement, affirmatively elects to terminate such Lease. 
  

	 	(b)	Residential Lease Requirements. 

 All Residential Leases shall be: 
 (1)
        on forms approved by Lender; and 
 (2)
        for initial lease terms of not less than six (6) months and not more than twenty-four (24) months (however, if customary in the applicable market, Residential Leases with terms of less than
six (6) months may be permitted with Lender’s prior written consent). 
 Notwithstanding the foregoing, Borrower may
enter into Residential Leases with terms less than six (6) months without Lender’s prior written consent, provided that (i) no more than five percent (5%) of the Residential Leases shall have terms of less than six
(6) months, and (ii) all such Residential Leases must have a term of at least one (1) month. 
 ARTICLE 8 -
BOOKS AND RECORDS; FINANCIAL REPORTING 
 Section 8.01     Representations and Warranties. 

  

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

	 	(a)	Financial Information. 

All financial statements and data, including statements of cash flow and income and operating expenses, that have been delivered to
Lender in respect of the Mortgaged Property: 
 (1)
        are true, complete and correct in all material respects; and 
 (2)         accurately represent the financial condition of the Mortgaged Property as of such date. 

 

	 	(b)	No Change in Facts or Circumstances. 

 All information in the Loan Application and in all financial statements, rent rolls, reports, certificates and other documents submitted in connection with the Loan Application are complete and accurate
in all material respects. There has been no material adverse change in any fact or circumstance that would make any such information incomplete or inaccurate. 
 Section 8.02     Covenants. 
  

	 	(a)	Obligation to Maintain Accurate Books and Records. 

 Borrower shall keep and maintain at all times at the Mortgaged Property or the property management agent’s offices or Borrower’s General Business Address and, upon Lender’s request, shall
make available at the Land: 
 (1)         complete and accurate books
of account and records (including copies of supporting bills and invoices) adequate to reflect correctly the operation of the Mortgaged Property; and 
 (2)         copies of all written contracts, Leases and other instruments that affect Borrower or the Mortgaged Property. 

 

	 	(b)	Items to Furnish to Lender. 

 Borrower shall furnish to Lender the following, certified as true, complete and accurate by an individual having authority to bind Borrower (or Guarantor, as applicable), in such form and with such detail
as Lender reasonably requires: 
 (1)         within forty-five
(45) days after the end of each first, second and third calendar quarter, a statement of income and expenses for Borrower on a year-to-date basis as of the end of each calendar quarter; 

(2)         within one hundred twenty (120) days after the end of each
calendar year: 

  

					
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 (A)        a
statement of income and expenses for Borrower and Guarantor for such calendar year; 

(B)        a statement of cash flows of Borrower and Guarantor
for such calendar year; 
 (C)        when requested by
Lender, balance sheet(s) showing all assets and liabilities of Borrower and Guarantor as of the end of such calendar year; and 
 (D)        a written certification ratifying and affirming that: 

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

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

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

(iv)        Borrower has taken no action and has no knowledge of
any action that would violate the provisions of Section 11.02(b)(1)(F) regarding liens encumbering the Mortgaged Property; 
 (E)        an accounting of all security deposits held pursuant to all Leases, including the name of the institution (if any) and the names and identification
numbers of the accounts (if any) in which such security deposits are held and the name of the person to contact at such financial institution, along with any authority or release necessary for Lender to access information regarding such accounts;
and 
 (F)        a statement that identifies all
owners of any interest in Borrower and the interest held by each, and if Borrower is a corporation, the names of all officers and directors of Borrower, and if Borrower is a limited liability company, the names of all managers who are not members;

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

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

  

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

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

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

	 	(c)	Delivery of Books and Records. 

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

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

 

	 	(a)	Right to Audit Books and Records. 

 Lender may require that any or all of the statements, schedules and reports of Borrower or the Mortgaged Property be audited, at Borrower’s expense, by independent certified public accountants
acceptable to Lender; provided that such requirement shall be limited to not more than once per Borrower’s fiscal year so long as no Event of Default has occurred (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). If Borrower fails, in a timely manner, to provide any such required audited materials, Lender shall have the right, at Borrower’s expense, to have such materials audited by
independent certified public accountants selected by Lender. All related costs and expenses of Lender shall become immediately due and payable within ten (10) Business Days after demand therefor. 

 

	 	(b)	Credit Reports; Credit Score. 

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

ARTICLE 9 - INSURANCE 

Section 9.01     Representations and Warranties. 

  

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

	 	(a)	Compliance with Insurance Requirements. 

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

	 	(b)	Property Condition. 

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

(2)        if previously damaged, any previous damage to the
Mortgaged Property has been repaired and the Mortgaged Property has been fully restored. 
 Section 9.02
    Covenants. 
  

	 	(a)	Insurance Requirements. 

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

(A)        keep the Improvements insured at all times against
any hazards, which insurance shall include coverage against loss by fire and allied perils, general boiler and machinery coverage, business income coverage and flood (if any of the Improvements are located in an area identified by the Federal
Emergency Management Agency (or any successor) as an area having special flood hazards and to the extent flood insurance is available in that area), and may include sinkhole insurance, mine subsidence insurance, earthquake insurance, terrorism
insurance and, if the Mortgaged Property does not conform to applicable building, zoning or land use laws, ordinance and law coverage; 
 (B)        maintain at all times commercial general liability insurance, workmen’s compensation insurance and such other liability, errors and omissions and
fidelity insurance coverage; and 
 (C)        maintain
workmen’s compensation insurance, builder’s risk and public liability insurance, and other insurance in connection with completing the Repairs or Replacements, as applicable. 

 

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

 Borrower shall: 

  

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

 (2)        promptly deliver to Lender a copy of all
renewal and other notices received by Borrower with respect to the policies and all receipts for paid premiums; 
 (3)        deliver evidence, in form and content acceptable to Lender, that each existing insurance policy has been renewed not less than thirty (30) days
prior to the applicable expiration date and (if such evidence is other than an original or duplicate original of a renewal policy) deliver the original or duplicate original of each renewal policy in form and content acceptable to Lender within
ninety (90) days after the applicable expiration date of the original insurance policy); 

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

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

(6)        provide immediate written notice to Lender of
Borrower’s receipt of any insurance proceeds under any insurance policy required by Section 9.02(a)(1)(A) above and, if requested by Lender, deliver to Lender all of such proceeds received by Borrower to be applied by Lender in accordance
with this Article 9. 
 Section 9.03     Mortgage Loan Administration Matters Regarding Insurance 

 

	 	(a)	Lender’s Ongoing Insurance Requirements. 

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

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

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

(3)        issued by insurance companies satisfactory to Lender. 

BORROWER ACKNOWLEDGES THAT ANY FAILURE TO COMPLY WITH INSURANCE PROVISIONS SHALL PERMIT LENDER TO PURCHASE SUCH INSURANCE AT
BORROWER’S COST. SUCH INSURANCE MAY, BUT NEED NOT, PROTECT BORROWER’S INTERESTS. THE COVERAGE THAT LENDER PURCHASES MAY NOT PAY ANY CLAIM THAT BORROWER MAKES OR ANY CLAIM THAT IS MADE AGAINST BORROWER IN CONNECTION WITH THE MORTGAGED
PROPERTY. IF LENDER PURCHASES INSURANCE FOR THE MORTGAGED PROPERTY, 

  

					
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BORROWER WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AT THE DEFAULT RATE AND ANY OTHER CHARGES LENDER MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE
UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR THE EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE SHALL BE ADDED TO BORROWER’S TOTAL OUTSTANDING BALANCE OR OBLIGATION AND SHALL CONSTITUTE ADDITIONAL INDEBTEDNESS. THE COSTS OF THE
INSURANCE MAY BE MORE THAN THE COST OF INSURANCE BORROWER MAY BE ABLE TO OBTAIN ON ITS OWN. BORROWER MAY LATER CANCEL ANY INSURANCE PURCHASED BY LENDER, BUT ONLY AFTER PROVIDING EVIDENCE THAT BORROWER HAS OBTAINED INSURANCE AS REQUIRED BY THIS LOAN
AGREEMENT AND THE OTHER LOAN DOCUMENTS. 
  

	 	(b)	Application of Proceeds on Event of Loss. 

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

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

(B)        apply such proceeds to the payment of the
Indebtedness, whether or not then due; provided, however, Lender shall not apply insurance proceeds to the payment of the Indebtedness and shall permit Restoration pursuant to Section 9.03(b)(1) if all of the following conditions
are met: 
 (i)        no Event of Default has occurred
(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)        Lender determines that there will be sufficient
funds to complete the Restoration; 

(iii)        Lender determines that the net operating income
generated by the Mortgaged Property after completion of the Restoration will be sufficient to support a debt service coverage ratio not less than the debt service coverage ratio immediately prior to the event of loss, but in no event less than 1.0x
(the debt service coverage ratio shall be calculated on a thirty (30) year amortizing basis in all events and shall include all operating costs and other expenses, Imposition Deposits, deposits to Collateral Accounts and Mortgage Loan repayment
obligations); 
 (iv)        Lender determines that the
Restoration will be completed before the earlier of (x) one (1) year before the stated Maturity Date or (y) one (1) year after the date of the loss or casualty; and 

  

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

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

(2)        Notwithstanding the foregoing, if any loss is
estimated to be in an amount equal to or less than $50,000, Lender shall not exercise its rights and remedies as power-of-attorney herein and shall allow Borrower to make proof of loss, to adjust and compromise any claims under policies of property
damage insurance, to appear in and prosecute any action arising from such policies of property damage insurance, and to collect and receive the proceeds of property damage insurance; provided that each of the following conditions shall be satisfied:

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

(B)        no Event of Default has occurred (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); 
 (C)        the Restoration will be completed before the earlier of (i) one (1) year before the stated Maturity Date or (ii) one (1) year after
the date of the loss or casualty; 
 (D)        there
will be sufficient funds to complete the Restoration; 

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

(F)        all proceeds of property damage insurance shall be
applied to the Restoration; 
 (G)        Borrower
shall deliver to Lender evidence satisfactory to Lender of completion of the Restoration and obtainment of all lien releases; 
 (H)        Borrower shall have complied to Lender’s satisfaction with the foregoing requirements on any prior claims subject to this provision, if any; and

 (I)        Lender shall have the right to inspect
the Mortgaged Property. 
 (3)        If Lender elects
to apply insurance proceeds to the Indebtedness in accordance with the terms of this Loan Agreement, Borrower shall not be obligated to restore or repair the Mortgaged Property. Rather, Borrower shall restrict access to the damaged portion of the
Mortgaged Property and, at its expense and regardless of whether such costs are covered by insurance, clean up any debris resulting from the casualty 

  

					
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event, and, if required or otherwise permitted by Lender, demolish or raze any remaining part of the damaged Mortgaged Property to the extent necessary to keep and maintain the Mortgaged Property
in a safe, habitable and marketable condition. Nothing in this Section 9.03(b) shall affect any of Lender’s remedial rights against Borrower in connection with a breach by Borrower of any of its obligations under this Loan Agreement or
under any Loan Document, including any failure to timely pay Monthly Debt Service Payments or maintain the insurance coverage(s) required by this Loan Agreement. 
  

	 	(c)	Payment Obligations Unaffected. 

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

	 	(d)	Foreclosure Sale. 

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

 

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

 Borrower hereby authorizes and appoints Lender as attorney-in-fact pursuant to Section 14.03(c). 
 ARTICLE 10 - CONDEMNATION 
 Section 10.01    Representations
and Warranties. 
 The representations and warranties made by Borrower to Lender in this Section 10.01 are made as of
the Effective Date, and are true and correct except as disclosed on the Exceptions to Representations and Warranties Schedule. 
  

	 	(a)	Prior Condemnation Action. 

  

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

  

	 	(b)	Pending Condemnation Actions. 

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

Section 10.02    Covenants. 
  

	 	(a)	Notice of Condemnation. 

Borrower shall: 
 (1)        promptly notify Lender of any Condemnation Action; 

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

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

	 	(b)	Condemnation Proceeds. 

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

Section 10.03    Mortgage Loan Administration Matters Regarding Condemnation. 

 

	 	(a)	Application of Condemnation Awards. 

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

(1)        the restoration or repair of the Mortgaged Property;
or 
 (2)        the payment of the Indebtedness, with
the balance, if any, paid to Borrower. 
  

	 	(b)	Payment Obligations Unaffected. 

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

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

  

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

	 	(d)	Application of Proceeds. 

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

ARTICLE 11 - LIENS, TRANSFERS AND ASSUMPTIONS 
 Section 11.01    Representations and Warranties. 

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

	 	(a)	No Labor or Materialmen’s Claims. 

 All parties furnishing labor and materials have been paid in full and there are no mechanics’ or 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. 
  

	 	(b)	No Other Interests. 

 No
Person: 
 (1)        other than Borrower has any
possessory ownership or interest in the Mortgaged Property or right to occupy the same except under and pursuant to the provisions of existing Leases, the material terms of all such Leases having been previously disclosed to Lender; 

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

Section 11.02    Covenants. 
  

	 	(a)	Liens; Encumbrances. 

  

					
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 Other than Permitted Encumbrances and the lien of the Security Instrument and this Loan
Agreement, Borrower shall not permit the grant, creation or existence of any Lien, whether voluntary, involuntary or by operation of law, on all or any portion of the Mortgaged Property (including any voluntary, elective or non-compulsory tax lien
or assessment pursuant to a voluntary, elective or non-compulsory special tax district or similar regime). 
  

	 	(b)	Transfers. 

  

	 	(1)	Mortgaged Property. 

Borrower shall not Transfer, or cause or permit a Transfer of, all or any part of the Mortgaged Property (including any interest in the
Mortgaged Property) other than: 
 (A)        a
Transfer to which Lender has consented in writing; 

(B)        the grant of a Residential Lease for a term of two
(2) years or less and not containing an option to purchase or right of first refusal (except as required by applicable law); 
 (C)        the grant of a non-Material Commercial Lease provided the use and type of operation of such space is unchanged from the use and type of operation in
effect as of the Effective Date and the number and size of residential units at the Mortgaged Property are not reduced; 
 (D)        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 (other than those created by the Loan Documents); 

(E)        the grant of an easement, servitude or restrictive
covenant to which Lender has consented, and Borrower has paid to Lender, upon demand, all costs and expenses incurred by Lender in connection with reviewing Borrower’s request; or 

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

	 	(2)	Interests in Borrower and/or Key Principal and/or Guarantor. 

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

(A)        a direct or indirect Controlling Interest in
Borrower, Key Principal or Guarantor (if applicable); 

  

					
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 (B)        more
than forty-nine percent (49%) of any Key Principal’s or Guarantor’s direct or indirect ownership interests in Borrower that existed on the Effective Date (individually or on an aggregate basis); 

(C)        the economic benefits or rights to cash flows
attributable to any ownership interests in Borrower, Key Principal or Guarantor (if applicable) separate from the Transfer of the underlying ownership interests if the Transfer of the underlying ownership interest is prohibited by this Loan
Agreement; or 
 (D)        a Transfer to a new key
principal or new guarantor (if such new key principal or guarantor is an entity) which entity has an organizational existence termination date that ends before the Maturity Date. 

 

	 	(3)	 Entity Conversion. 

(A)        Borrower shall not change its name, change its
jurisdiction or organization, or cause or permit a conversion of Borrower from one type of entity into another type of entity if such conversion results in either: 

(i)        a Transfer of a Controlling Interest; or 

(ii)       a change in any assets, liabilities, legal rights or
obligations of Borrower (or of Key Principal, Guarantor or any general partner, manager (if non-member managed) or managing member of Borrower, as applicable), by operation of law or otherwise. 

(B)        Notwithstanding the foregoing, Borrower may convert
from one type of legal entity into another type of legal entity for tax or other structuring purposes, provided: 
 (i)        the provisions of Section 11.02(b)(2) are satisfied; 

(ii)       Borrower provides Lender with at least ten (10) days
prior written notice of such conversion; 
 (iii)      Borrower
provides Lender any certificates evidencing such conversion filed with the appropriate Secretary of State within ten (10) days after filing such certificates; 

(iv)      Borrower provides Lender new certificates of good standing for
such entity at least five (5) days prior to such conversion; 

(v)       Lender reserves the right to file UCC-3 amendments where
necessary reflecting the conversion; 
 (vi)      if required by
Lender, Borrower executes an amendment to this Loan Agreement documenting the conversion; and 

  

					
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(vii)        Borrower shall provide Lender with confirmation from
the title company (via electronic mail or letter) that nothing is needed in the land records (of the appropriate Property Jurisdiction) at such time to evidence such conversion, and no endorsements to the Title Policy are necessary to maintain
Lender’s coverage; or if any endorsements are necessary, Borrower shall provide such endorsements at Borrower’s cost. 

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

 

	 	(a)	 Assumption of Mortgage Loan. 

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

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

(2)        no Event of Default has occurred, and no event which,
with the giving of notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing; 
 (3)        Lender determines that: 
 (A)        the proposed new borrower, new key principal and any other new guarantor fully satisfy all of Lender’s then-applicable borrower, key principal or
guarantor eligibility, credit, management and other loan underwriting standards (including any standards with respect to previous relationships between Lender and the proposed new borrower, new key principal and new guarantor and the organization of
the new borrower, new key principal and new guarantor (if applicable)); 

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

(4)        Lender determines that the Mortgaged Property
satisfies all of Lender’s then-applicable loan underwriting standards, including physical condition, occupancy and net operating income; 
 (5)        the proposed new borrower has executed an assumption agreement acceptable to Lender that, among other things, requires the proposed new borrower to
assume and perform all obligations of Borrower (or any other transferor), and that may 

  

					
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require that the new borrower comply with any provisions of any Loan Document which previously may have been waived by Lender for Borrower, subject to the terms of Section 11.03(g);

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

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

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

(7)        Lender has reviewed and approved the Transfer
documents; and 
 (8)        Lender has received the
fees described in Section 11.03(g). 
  

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

(1)        Transfers of direct or indirect ownership interests in
Borrower that are not otherwise permitted by this Loan Agreement but in which Key Principal or Guarantor, or an entity in which Key Principal or Guarantor, as applicable, owns a Controlling Interest, is the transferee shall be consented to by Lender
if such Transfer satisfies the applicable requirements of Section 11.03(a), other than Section 11.03(a)(5). 
 (2)        Transfers of direct or indirect interests in Borrower held by a Key Principal or Guarantor to other Key Principals or Guarantors, as applicable, shall be
consented to by Lender if such Transfer satisfies the following conditions: 

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

(B)        the transferor Key Principal or Guarantor maintains
the same right and ability to manage and control Borrower as existed prior to the Transfer. 
 If the conditions set forth in this
Section 11.03(b) are satisfied, the Transfer Fee shall be waived provided Borrower shall pay the Review Fee and out-of-pocket costs set forth in Section 11.03(g). 

 

	 	(c)	 Estate Planning. 

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

  

					
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(A)        Immediate Family Members of such Key Principal or
Guarantor; 
 (B)        United States domiciled trusts
established for the benefit of the transferor Key Principal or transferor Guarantor, or Immediate Family Members of the transferor Key Principal or the transferor Guarantor; or 

(C)        partnerships or limited liability companies of which
the partners or members, respectively, are all Immediate Family Members of such Key Principal or Guarantor. 
 If the conditions set forth in
this Section 11.03(c) are satisfied, the Transfer Fee shall be waived provided Borrower shall pay the Review Fee and out-of-pocket costs set forth in Section 11.03(g). 

 

	 	(d)	Termination or Revocation of Trust. 

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

(1)        Lender is notified within thirty (30) days of the
death; and 
 (2)        such Borrower, Guarantor or Key
Principal, as applicable, is replaced with an individual or entity acceptable to Lender, in accordance with the provisions of Section 11.03(a) within ninety (90) days of the date of death. 

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

	 	(e)	Death of Key Principal or Guarantor. 

 (1)        If Key Principal or Guarantor is a natural person, Borrower must notify Lender in writing within ninety (90) days in the event Key Principal or
Guarantor dies. Unless waived in writing by Lender, the deceased Key Principal or Guarantor shall be replaced by an individual or entity within one hundred eighty (180) days, subject to Borrower’s satisfaction of the following conditions:

 (A)        Borrower has submitted to Lender all
information required by Lender to make the determination required by this Section 11.03(e); 
 (B)        Lender determines that: 
 (i)        the proposed new key principal and any other new guarantor fully satisfies all of Lender’s then-applicable key principal or guarantor eligibility,
credit, management and other loan underwriting standards (including any standards with respect to previous relationships between Lender and the proposed new key principal and new guarantor 

  

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

 (iii)      none of the proposed new key principal or any new
guarantor (if any of such are entities) shall have an organizational existence termination date that ends before the Maturity Date; and 
 (C)        if applicable, one or more individuals or entities acceptable to Lender as new guarantors have executed and delivered to Lender: 

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

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

(2)        In the event a replacement Key Principal or Guarantor
is required by Lender due to the death described in this Section 11.03(e), and such replacement has not occurred within such period, the period for replacement may be extended by Lender to a date not more than one (1) year from the date of
Key Principal’s or Guarantor’s death; however, Lender may require as a condition to any such extension that: 
 (A)        the then-current property manager be replaced with a property manager reasonably acceptable to Lender (or if a property manager has not been previously
engaged, a property manager reasonably acceptable to Lender be engaged); or 

(B)        a lockbox or cash management arrangement (with the
property manager) reasonably acceptable to Lender during such extended replacement period be instituted. 
 If the conditions set forth in this
Section 11.03(e) are satisfied, the Transfer Fee shall be waived, provided Borrower shall pay the Review Fee and out-of-pocket costs set forth in Section 11.03(g). 

 

	 	(f)	Bankruptcy of Guarantor. 

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

  

					
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 (A)        Borrower
has submitted to Lender all information required by Lender to make the determination required by this Section 11.03(f); 
 (B)        Lender determines that 
 (i)        the proposed new guarantor fully satisfies all of Lender’s then-applicable guarantor eligibility, credit, management and other loan underwriting
standards (including any standards with respect to previous relationships between Lender and the proposed new guarantor and the organization of the new guarantor (if applicable)); 

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

 (iii)       no new guarantor (if any of such are
entities) shall have an organizational existence termination date that ends before the Maturity Date; and 
 (C)        one or more individuals or entities acceptable to Lender as new guarantors have executed and delivered to Lender: 

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

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

(2)        In the event a replacement Guarantor is required by
Lender due to the Guarantor Bankruptcy Event described in this Section 11.03(f), and such replacement has not occurred within such period, the period for replacement may be extended by Lender in its discretion; however, Lender may require as a
condition to any such extension that: 
 (A)        the
then-current property manager be replaced with a property manager reasonably acceptable to Lender (or if a property manager has not been previously engaged, a property manager reasonably acceptable to Lender be engaged); or 

(B)        a lockbox or cash management arrangement (with the
property manager) reasonably acceptable to Lender during such extended replacement period be instituted. 
 If the conditions set forth in this
Section 11.03(f) are satisfied, the Transfer Fee shall be waived, provided Borrower shall pay the Review Fee and out-of-pocket costs set forth in Section 11.03(g). 

 

	 	(g)	Further Conditions to Transfers and Assumption. 

  

					
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 (1)        In
connection with any Transfer of the Mortgaged Property, or an ownership interest in Borrower, Key Principal or Guarantor for which Lender’s approval is required under this Loan Agreement, Lender may, as a condition to any such approval,
require: 
 (A)        additional collateral,
guaranties or other credit support to mitigate any risks concerning the proposed transferee or the performance or condition of the Mortgaged Property; 

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

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

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

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

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

(C)        all of Lender’s out-of-pocket costs (including
reasonable attorneys’ fees) incurred in reviewing the Transfer request, to the extent such costs exceed the Review Fee. 
 (3)        Borrower shall provide Lender written notice of all Transfers whether or not such Transfers are permitted under this Loan Agreement or approved by Lender
no later than ten (10) days prior to the date of the Transfer, provided that Borrower shall not be required to provide notice of Transfers of Residential Leases or of the replacement of Fixtures or Personalty performed pursuant to the terms of
the Loan Documents. 
  

	 	(h)	Permitted Transfers. 

 Notwithstanding anything to the contrary in Section 11.02(b)(2), any Transfer of shares in KBS Legacy Partners Apartment REIT, Inc. shall be permitted without the consent of Lender and shall not
require the payment of any fees to Lender, so long as after the completion of such transaction KBS Legacy Partners Apartment REIT, Inc. continues to be a Publicly-Held Corporation or Publicly-Held Trust and provided that no modification or amendment
shall be made to the charter or other organizational documents of KBS Legacy Partners Apartment REIT, Inc. that would have the effect of permitting any one person or entity to own more than 9.8% of the issued and outstanding shares of KBS Legacy
Partners Apartment REIT, Inc. and no exemption to such restriction shall be granted by the board of directors unless Lender has granted its prior written approval of such modification, amendment, or exemption. 

  

					
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 ARTICLE 12 - IMPOSITIONS 
 Section 12.01   Representations and Warranties. 
 The
representations and warranties made by Borrower to Lender in this Section 12.01 are made as of the Effective Date, and are true and correct except as disclosed on the Exceptions to Representations and Warranties Schedule. 

 

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

 Borrower has: 

(1)        paid (or with the approval of Lender, established an
escrow fund sufficient to pay when due and payable) all amounts and charges relating to the Mortgaged Property that have become due and payable, including Impositions, leasehold payments and ground rents; 

(2)        paid all Taxes for the Mortgaged Property that have
become due pursuant to any notice of assessment received by Borrower and any and all taxes that have become due against Borrower; 
 (3)        no knowledge of any basis for any additional assessments; 

(4)        no knowledge of any presently pending special
assessments against all or any part of the Mortgaged Property, or any presently pending special assessments against Borrower; and 
 (5)        not received any written notice of any contemplated special assessment against the Mortgaged Property, or any contemplated special assessment against
Borrower. 
 Section 12.02   Covenants. 
  

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

 Borrower shall: 

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

  

					
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 (2)        deposit
with Lender, within ten (10) days after notice from Lender (subject to applicable law), such additional amounts estimated by Lender to be reasonably necessary to cure any deficiency in the amount of the Imposition Deposits held for payment of a
specific Imposition; 
 (3)        pay, or cause to be
paid, all Impositions, leasehold payments, ground rents and Borrower taxes when due and before the addition of any interest, fine, penalty or cost for nonpayment, except to the extent Lender is obligated to use Imposition Deposits for such purpose
pursuant to Section 12.03(c); 

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

(5)        promptly deliver to Lender a copy of all notices of
any special assessments and contemplated special assessments against the Mortgaged Property or Borrower. 
 Section 12.03
  Mortgage Loan Administration Matters Regarding Impositions. 
  

	 	(a)	Maintenance of Records by Lender. 

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

	 	(b)	Imposition Accounts. 

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

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

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

(1)        no Event of Default exists; 

  

					
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 (2)        Borrower
has timely delivered to Lender all applicable bills or premium notices that it has received; and 
 (3)        sufficient Imposition Deposits are held by Lender for each Imposition at the time such Imposition becomes due and payable. 

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

	 	(d)	Imposition Deposits Upon Event of Default. 

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

	 	(e)	Contesting Impositions. 

Other than insurance premiums, Borrower may contest, at its expense, by appropriate legal proceedings, the amount or validity of any
Imposition if: 
 (1)        Borrower notifies Lender of
the commencement or expected commencement of such proceedings; 

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

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

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

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

	 	(f)	Release to Borrower. 

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

  

					
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 ARTICLE 13 - REPLACEMENT RESERVE AND REPAIRS 

Section 13.01   Covenants. 
  

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

On the Effective Date, Borrower shall pay to Lender: 

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

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

	 	(b)	Monthly Replacement Reserve Deposits. 

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

 

	 	(c)	Payment for Replacements and Repairs. 

 Borrower shall: 

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

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

	 	(d)	Assignment of Contracts for Replacements and Repairs. 

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

 

	 	(e)	Indemnification. 

Borrower shall indemnify and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses,
damages, obligations and costs or expenses, including litigation costs and reasonable attorneys’ fees, arising from or in any way connected with the 

  

					
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performance of the Replacements or Repairs or investment of the Reserve/Escrow Account Funds. 
  

	 	(f)	Amendments to Loan Documents. 

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

	 	(g)	Administrative Fees and Expenses. 

 Borrower shall pay to Lender: 

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

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

(3)        upon demand, all reasonable fees charged by any
engineer, architect, inspector or other person inspecting the Mortgaged Property on behalf of Lender for each inspection of the Mortgaged Property in connection with a Repair or Replacement, plus all other reasonable costs and out-of-pocket expenses
relating to such inspections. 
 Section 13.02   Mortgage Loan Administration Matters Regarding Reserves. 

 

	 	(a)	Accounts, Deposits, and Disbursements. 

  

	 	(1)	Custodial Accounts. 

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

  

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

	 	(2)	Disbursements by Lender Only. 

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

	 	(3)	Adjustment of Deposits. 

  

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

 If the Loan Term exceeds ten (10) years, a physical needs assessment shall be ordered by Lender for the Mortgaged Property at the expense of Borrower (which expense may be paid out of the Replacement
Reserve Account if excess funds are available). The physical needs assessment shall be performed no earlier than the sixth (6th) month and no later than the ninth (9th) month of the tenth (10th) Loan Year (and of the twentieth
(20th) Loan Year if the Loan Term exceeds twenty (20) years). After review of the physical needs assessment, the amount of the Monthly Replacement Reserve Deposit may be adjusted by Lender for the remaining Loan Term by written notice to
Borrower so that the Monthly Replacement Reserve Deposits are sufficient to fund the Replacements as and when required and/or the amount to be held in the Repairs Escrow Account may be adjusted by Lender so that the Repairs Escrow Deposit is
sufficient to fund the Repairs as and when required. 
  

	 	(B)	Transfers. 

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

 

	 	(4)	Insufficient Funds. 

Lender may, upon thirty (30) days prior written notice to Borrower, require an additional deposit(s) to the Replacement Reserve
Account or Repairs Escrow Account, or an 

  

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

	 	(5)	Disbursements for Replacements and Repairs. 

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

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

 

	 	(6)	Disbursement Requests. 

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

  

					
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 (A)        if
applicable, specify the quantity and price of the items or materials purchased, grouped by type or category; 
 (B)        if applicable, specify the cost of all contracted labor or other services involved in the Replacement or Repair for which such request for disbursement
is made; 
 (C)        if applicable, include copies of
invoices for all items or materials purchased and all contracted labor or services provided; 

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

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

	 	(7)	Conditions to Disbursement. 

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

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

(C)        either: 

(i)        a search of title to the Mortgaged Property effective
to the date of disbursement; or 
 (ii)       a
“date-down” endorsement to Lender’s Title Policy extending the effective date of such policy to the date of disbursement, and showing no Liens other than Permitted Encumbrances (or liens which

  

					
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Borrower is diligently contesting in good faith that have been bonded off to the satisfaction of Lender); and 

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

	 	(8)	Joint Checks for Periodic Disbursements. 

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

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

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

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

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

(E)        Lender determines that the remaining funds in the
Replacement Reserve Account designated for such Replacement, or in the Repairs Escrow Account designated for such Repair, as applicable, are sufficient to complete the Replacement or Repair; 

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

(G)        all other conditions for disbursement have been
satisfied. 
 (9)      Replacements and Repairs Other than Required Replacements and/or
Required Repairs. 

  

					
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 (A)        Borrower Requested
Replacements and Borrower Requested Repairs. 
 In the event Borrower requests a disbursement from the
Replacement Reserve Account or the Repairs Escrow Account to reimburse Borrower for any Borrower Requested Replacement or Borrower Requested Repair, any related disbursement request must also contain support for why Lender should allow such
disbursement. Lender may make disbursements for Borrower Requested Replacements or Borrower Requested Repairs if Lender determines that: 
 (i)        they are of the type intended to be covered by the Replacement Reserve Account or the Repairs Escrow Account, as applicable; 

(ii)        the costs are reasonable; 

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

(iv)        all conditions for disbursement from the Replacement
Reserve Account or Repairs Escrow Account, as applicable, have been satisfied. 
 Nothing in this Loan Agreement shall limit
Lender’s right to require an additional deposit to the Replacement Reserve Account or an increase to the Monthly Replacement Reserve Deposit in connection with any such Borrower Requested Replacements, or an additional deposit to the Repairs
Escrow Account for any such Borrower Requested Repairs. 

(B)        Additional Lender Replacements and Additional Lender Repairs.

 Lender may require, as set forth in Section 6.02(b)(3), Section 6.03(c), or otherwise from
time to time, upon written notice to Borrower, that Borrower make Additional Lender Replacements or Additional Lender Repairs. Lender may make disbursements from the Replacement Reserve Account for Additional Lender Replacements or from the Repairs
Escrow Account for Additional Lender Repairs, as applicable, if Lender determines that: 

(i)        the costs are reasonable; 

  

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

(iii)        all conditions for disbursement from the Replacement
Reserve Account or Repairs Escrow Account, as applicable, have been satisfied. 
 Nothing in this Loan Agreement shall limit
Lender’s right to require an additional deposit to the Replacement Reserve Account or an increase to the Monthly Replacement Reserve Deposit for any such Additional Lender Replacements or an additional deposit to the Repairs Escrow Account for
any such Additional Lender Repair. 
  

	 	(10)	Excess Costs. 

 In the
event any Replacement or Repair exceeds the approved cost set forth on the Required Replacement Schedule for Replacements, or the Maximum Repair Cost for Repairs, Borrower may submit a disbursement request to reimburse Borrower for such excess cost.
The disbursement request must contain support for why Lender should allow such disbursement. Lender may make disbursements from the Replacement Reserve Account or the Repairs Escrow Account, as applicable, if: 

(A)        the excess cost is reasonable; 

(B)        the amount of funds in the Replacement Reserve
Account or the Repairs Escrow Account, as applicable, is sufficient to pay such excess cost and the then-current estimated cost of completing all remaining Replacements and Repairs at the Maximum Repair Cost; and 

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

	 	(11)	Final Disbursements. 

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

	 	(b)	Approvals of Contracts; Assignment of Claims. 

  

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

 

	 	(c)	Delays and Workmanship. 

If Lender determines that any work for any Replacement or Repair has not timely commenced, has not been timely performed in a workmanlike
manner, or has not been timely completed in a workmanlike manner, Lender may, without notice to Borrower: 
 (1)        withhold disbursements from the Replacement Reserve Account or Repairs Escrow Account for such unsatisfactory Replacement or Repair, as applicable;

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

(3)        apply the funds in the Replacement Reserve Account or
Repairs Escrow Account toward the labor and materials necessary to make or complete such Replacement or Repair, as applicable; or 
 (4)        exercise any and all other remedies available to Lender under this Loan Agreement or any other Loan Document, including any remedies otherwise available
upon an Event of Default pursuant to the terms of Section 14.02. 
 To facilitate Lender’s completion or making of such Replacements
or Repairs, Lender shall have the right to enter onto the Mortgaged Property and perform any and all work and labor necessary to make or complete the Replacements or Repairs and employ watchmen to protect the Mortgaged Property from damage. All
funds so expended by Lender shall be deemed to have been advanced to Borrower, shall be part of the Indebtedness and shall be secured by the Security Instrument and this Loan Agreement. 

 

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

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

	 	(e)	No Lender Obligation. 

Nothing in this Loan Agreement shall: 
 (1)        make Lender responsible for making or completing the Replacements or Repairs; 

  

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

(3)        obligate Lender to proceed with the Replacements or
Repairs; or 
 (4)        obligate Lender to demand from
Borrower additional sums to make or complete any Replacement or Repair. 
  

	 	(f)	 No Lender Warranty. 

Lender’s approval of any plans for any Replacement or Repair, release of funds from the Replacement Reserve Account or Repairs
Escrow Account, inspection of the Mortgaged Property by Lender or its agents, representatives or designees, or other acknowledgment of completion of any Replacement or Repair in a manner satisfactory to Lender shall not be deemed an acknowledgment
or warranty to any person that the Replacement or Repair has been completed in accordance with applicable building, zoning or other codes, ordinances, statutes, laws, regulations or requirements of any governmental agency, such responsibility being
at all times exclusively that of Borrower. 
 ARTICLE 14 - DEFAULTS/REMEDIES 

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

 

	 	(a)	Automatic Events of Default. 

 The following shall constitute automatic Events of Default: 
 (1)        any failure by Borrower to pay or deposit when due any amount required by the Note, this Loan Agreement or any other Loan Document; 

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

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

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

(5)        fraud, gross negligence, willful misconduct or
material misrepresentation or material omission by Borrower, or any of its officers, directors, trustees, partners, members or managers, or any Guarantor, Key Principal or Principal or any of their

  

					
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employees, officers, directors, trustees, partners, members or managers in connection with: 

(A)        the application for, or creation of, the
Indebtedness; 
 (B)        any financial statement,
rent roll or other report or information provided to Lender during the term of the Mortgage Loan; 
 (C)        any request for Lender’s consent to any proposed action, including a request for disbursement of Reserve/Escrow Account Funds or Collateral Account
Funds; 
 (6)        the occurrence of any Transfer not
permitted by the Loan Documents; 
 (7)        the
occurrence of a Bankruptcy Event; 
 (8)        the
commencement of a forfeiture action or proceeding, whether civil or criminal, which, in Lender’s reasonable judgment, could result in a forfeiture of the Mortgaged Property or otherwise materially impair the lien created by this Loan Agreement
or the Security Instrument or Lender’s interest in the Mortgaged Property; 

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

(10)       if Borrower, Guarantor or Key Principal is a trust, the
termination or revocation of such trust, except as set forth in Section 11.03(d); 

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

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

 

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

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

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

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

  

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

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

 The following shall constitute an Event of Default subject to the cure period set forth below: 
 (1)        Any failure by Borrower to perform any of its obligations under this Loan Agreement or any Loan Document (other than those specified in
Section 14.01(a) or Section 14.01(b) above) as and when required, which failure continues for a period of thirty (30) days after notice of such failure by Lender to Borrower, provided, however, such period may be extended for up to an
additional thirty (30) days if Borrower, in the discretion of Lender, is diligently pursuing a cure of such; provided, further, however, no such notice, grace period or extension shall apply if, in Lender’s discretion,
immediate exercise by Lender of a right or remedy under this Loan Agreement or any Loan Document is required to avoid harm to Lender or impairment of the Mortgage Loan (including the Loan Documents), the Mortgaged Property or any other security
given for the Mortgage Loan. 
 Section 14.02 Remedies. 

 

	 	(a)	Acceleration; Foreclosure. 

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

 

	 	(b)	Loss of Right to Receive Replacement Reserve Disbursements and Repairs Disbursements. 

Upon the occurrence of an Event of Default under this Loan Agreement, Borrower shall immediately lose all of its rights to receive
disbursements from the Reserve/Escrow Accounts 

  

					
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and any Collateral Accounts. Upon any such Event of Default, Lender may use the Reserve/Escrow Account Funds and any Collateral Account Funds (or any portion thereof) for any purpose, including:

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

(2)        reimbursement of Lender for all losses and expenses
(including reasonable legal fees) suffered or incurred by Lender as a result of such Event of Default; 
 (3)        completion of the Replacement or Repair or for any other replacement or repair to the Mortgaged Property; and 

(4)        payment of any amount expended in exercising (and the
exercise of) all rights and remedies available to Lender at law or in equity or under this Loan Agreement or under any of the other Loan Documents. 
 Nothing in this Loan Agreement shall obligate Lender to apply all or any portion of the Reserve/Escrow Account Funds or Collateral Account Funds on account of any Event of Default by Borrower or to
repayment of the Indebtedness or in any specific order of priority. 
  

	 	(c)	Remedies Cumulative. 

Each right and remedy provided in this Loan Agreement is distinct from all other rights or remedies under this Loan Agreement or any
other Loan Document or afforded by applicable law, and each shall be cumulative and may be exercised concurrently, independently or successively, in any order. Lender shall not be required to demonstrate any actual impairment of its security or any
increased risk of default in order to exercise any of its remedies with respect to an Event of Default. 
 Section 14.03 Additional
Lender Rights; Forbearance. 
  

	 	(a)	No Effect Upon Obligations. 

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

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

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

  

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

(4)        the maturity of the Indebtedness may be accelerated as
provided in the Loan Documents; 
 (5)        any or all
payments due under the Loan Agreement or any other Loan Document may be reduced; 

(6)        any Loan Document may be modified or amended by Lender
and Borrower in any respect, including an increase in the principal amount of the Mortgage Loan; 
 (7)        any amounts under this Loan Agreement or any other Loan Document may be released ; 

(8)        any security for the Indebtedness may be modified,
exchanged, released, surrendered or otherwise dealt with or additional security may be pledged or mortgaged for the Indebtedness; 
 (9)        the payment of the Indebtedness or any security for the Indebtedness, or both, may be subordinated to the right to payment or the security, or both, of
any other present or future creditor of Borrower; 
 (10)      any
payments made by Borrower to Lender may be applied to the Indebtedness in such priority as Lender may determine in its discretion; or 
 (11)      any other terms of the Loan Documents may be modified. 
  

	 	(b)	No Waiver of Rights or Remedies. 

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

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

  

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

(1)        use any of the funds in the Replacement Reserve
Account or Repairs Escrow Account for the purpose of making or completing the Replacements or Repairs; 
 (2)        make such additions, changes and corrections to the Replacements or Repairs as shall be necessary or desirable to complete the Replacements or Repairs;

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

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

(5)        adjust and compromise any claims under any and all
policies of insurance required pursuant to this Loan Agreement and any other Loan Document; 

(6)        appear in and prosecute any action arising from any
insurance policies; 
 (7)        collect and receive
the proceeds of insurance, and to deduct from such proceeds Lender’s expenses incurred in the collection of such proceeds; 
 (8)        commence, appear in and prosecute, in Lender’s or Borrower’s name, any action or proceeding relating to any condemnation; 

(9)        settle or compromise any claim in connection with any
condemnation; 
 (10)      execute all applications and
certificates in the name of Borrower which may be required by any of the contract documents related to the Replacements or Repairs or to any of the other actions Lender is authorized to take pursuant to this Section 14.03(c); 

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

(12)      take such actions as are permitted in this Loan Agreement and any
other Loan Documents; 
 (13)      execute such financing
statements and other documents and to do such other acts as Lender may require to perfect and preserve Lender’s security interest in, and to enforce such interests in, the collateral; and 

(14)      carry out any remedy provided for in this Loan Agreement and any
other Loan Documents, including endorsing Borrower’s name to checks, drafts, instruments 

  

					
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and other items of payment and proceeds of the collateral, executing change of address forms with the postmaster of the United States Post Office serving the address of Borrower, changing the
address of Borrower to that of Lender, opening all envelopes addressed to Borrower and applying any payments contained therein to the Indebtedness. 
 Borrower hereby acknowledges that the constitution and appointment of such proxy and attorney-in-fact are coupled with an interest and are irrevocable and shall not be affected by the disability or
incompetence of Borrower. Borrower specifically acknowledges and agrees that this power of attorney granted to Lender may be assigned by Lender to Lender’s successors or assigns as holder of the Note (and the Mortgage Loan). However, the
foregoing shall not require Lender to incur any expense or take any action. Borrower hereby ratifies and confirms all that such attorney-in-fact may do or cause to be done by virtue of any provision of this Loan Agreement and any other Loan
Documents. 
 Section 14.04  Waiver of Marshaling. 

Notwithstanding the existence of any other security interests in the Mortgaged Property held by Lender or by any other party, Lender
shall have the right to determine the order in which any or all of the Mortgaged Property shall be subjected to the remedies provided in this Loan Agreement, any other Loan Document or applicable law. Lender shall have the right to determine the
order in which all or any part of the Indebtedness is satisfied from the proceeds realized upon the exercise of such remedies. Borrower and any party who now or in the future acquires a security interest in the Mortgaged Property and who has actual
or constructive notice of this Loan Agreement waives any and all right to require the marshaling of assets or to require that any of the Mortgaged Property be sold in the inverse order of alienation or that any of the Mortgaged Property be sold in
parcels or as an entirety in connection with the exercise of any of the remedies permitted by applicable law or provided in this Loan Agreement or any other Loan Documents. 
 ARTICLE 15 - MISCELLANEOUS 
 Section 15.01  Governing Law; Consent to
Jurisdiction and Venue. 
  

	 	(a)	 Governing Law. 

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

	 	(b)	 Venue. 

 Any
controversy arising under or in relation to this Loan Agreement or any other Loan Document shall be litigated exclusively in the Property Jurisdiction without regard to conflicts of laws principles. The state and federal courts and authorities with
jurisdiction in the Property Jurisdiction shall have exclusive jurisdiction over all controversies which shall arise under or in relation to this Loan Agreement or any other Loan Document. Borrower irrevocably consents to

  

					
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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.

 Section 15.02   Notice. 
  

	 	(a)	Process of Serving Notice. 

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

(1)        in writing and shall be: 

(A)        delivered, in person; 

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

 (D)        sent by electronic mail with originals to follow by
overnight courier; 
 (2)        addressed to the intended recipient at
Borrower’s Notice Address and Lender’s Notice Address, as applicable; and 

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

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

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

	 	(b)	Change of Address. 

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

 

	 	(c)	Default Method of Notice. 

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

	 	(d)	Receipt of Notices. 

  

					
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 Neither Borrower nor Lender shall refuse or reject delivery of any Notice given in
accordance with this Loan Agreement. Each party is required to acknowledge, in writing, the receipt of any Notice upon request by the other party. 
 Section 15.03   Successors and Assigns Bound; Sale of Mortgage Loan. 
  

	 	(a)	Binding Agreement. 

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

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

 Nothing in this Loan Agreement shall limit Lender’s (including its successors and assigns) right to sell or transfer the Mortgage Loan or any interest in the Mortgage Loan. The Mortgage Loan or a
partial interest in the Mortgage Loan (together with this Loan Agreement and the other Loan Documents) may be sold one (1) or more times without prior notice to Borrower. A sale may result in a change of the Loan Servicer. 

Section 15.04   Counterparts. 
 This Loan Agreement may be executed in any number of counterparts with the same effect as if the parties hereto had signed the same document and all such counterparts shall be construed together and shall
constitute one (1) instrument. 
 Section 15.05   Joint and Several (or Solidary) Liability. 

If more than one Person signs this Loan Agreement as Borrower, the obligations of such Persons shall be joint and several (solidary
instead for purposes of Louisiana law). 
 Section 15.06   Relationship of Parties; No Third Party Beneficiary.

  

	 	(a)	Solely Creditor and Debtor. 

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

 

	 	(b)	No Third Party Beneficiaries. 

 No creditor of any party to this Loan Agreement and no other person shall be a third party beneficiary of this Loan Agreement or any other Loan Document or any account created or contemplated under this
Loan Agreement or any other Loan Document. Nothing contained in this Loan Agreement shall be deemed or construed to create an obligation on the part of Lender 

  

					
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to any third party nor shall any third party have a right to enforce against Lender any right that Borrower may have under this Loan Agreement. Without limiting the foregoing: 

(1)        any Servicing Arrangement between Lender and any Loan Servicer shall
constitute a contractual obligation of such Loan Servicer that is independent of the obligation of Borrower for the payment of the Indebtedness; 
 (2)        Borrower shall not be a third party beneficiary of any Servicing Arrangement; and 

(3)        no payment by the Loan Servicer under any Servicing Arrangement will
reduce the amount of the Indebtedness. 
 Section 15.07  Severability; Entire Agreement; Amendments. 

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

Section 15.08  Construction. 
 (a)        The captions and headings of the sections of this Loan Agreement and the Loan Documents are for convenience only and shall be disregarded in construing
this Loan Agreement and the Loan Documents. 
 (b)        Any reference in this Loan
Agreement to an “Exhibit” or “Schedule” or a “Section” or an “Article” shall, unless otherwise explicitly provided, be construed as referring, respectively, to an exhibit or schedule attached to this Loan
Agreement or to a Section or Article of this Loan Agreement. 
 (c)        Any reference
in this Loan Agreement to a statute or regulation shall be construed as referring to that statute or regulation as amended from time to time. 
 (d)        Use of the singular in this Loan Agreement includes the plural and use of the plural includes the singular. 

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

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

  

					
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 (g)        Unless otherwise provided in this Loan
Agreement, if Lender’s approval is required for any matter hereunder, such approval may be granted or withheld in Lender’s sole and absolute discretion. 
 (h)        Unless otherwise provided in this Loan Agreement, if Lender’s designation, determination, selection, estimate, action or decision is required,
permitted or contemplated hereunder, such designation, determination, selection, estimate, action or decision shall be made in Lender’s sole and absolute discretion. 
 (i)        All references in this Loan Agreement to a separate instrument or agreement shall include such instrument or agreement as the same may be amended or
supplemented from time to time pursuant to the applicable provisions thereof. 

(j)        “Lender may” shall mean at Lender’s discretion, but shall not be an
obligation. 
 Section 15.09   Mortgage Loan Servicing. 

All actions regarding the servicing of the Mortgage Loan, including the collection of payments, the giving and receipt of notice,
inspections of the Mortgaged Property, inspections of books and records, and the granting of consents and approvals, may be taken by the Loan Servicer unless Borrower receives notice to the contrary. If Borrower receives conflicting notices
regarding the identity of the Loan Servicer or any other subject, any such notice from Lender shall govern. The Loan Servicer may change from time to time (whether related or unrelated to a sale of the Mortgage Loan). If there is a change of the
Loan Servicer, Borrower will be given notice of the change. 
 Section 15.10   Disclosure of Information. 

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

Section 15.11   Waiver; Conflict. 
 No specific waiver of any of the terms of this Loan Agreement shall be considered as a general waiver. If any provision of this Loan Agreement is in conflict with any provision of any other Loan Document,
the provision contained in this Loan Agreement shall control. 
 Section 15.12   Determinations by Lender. 

In any instance in this Loan Agreement 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, except as otherwise provided herein, the granting, withholding or denial of such consent or approval and the rendering of such determination,

  

					
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	  	Form 6001.NR	  	Page 70
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(Alta Crescent Apartments) 

 
judgment or decision shall be made or exercised by Lender (or its designated representative) at its discretion. 
 Section 15.13   Subrogation. 
 If, and to the extent that,
the proceeds of the Mortgage Loan are used to pay, satisfy or discharge any obligation of Borrower for the payment of money that is secured by a pre-existing mortgage, deed of trust or other lien encumbering the Mortgaged Property, such Mortgage
Loan proceeds shall be deemed to have been advanced by Lender at Borrower’s request, and Lender shall automatically, and without further action on its part, be subrogated to the rights, including lien priority, of the owner or holder of the
obligation secured by such prior lien, whether or not such prior lien is released. 
 Section 15.14   Counting of Days.

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

Section 15.15   Revival and Reinstatement of Indebtedness. 

If the payment of all or any part of the Indebtedness by Borrower, Key Principal or any Guarantor or the transfer to Lender of any
collateral or other property should for any reason subsequently be declared to be void or voidable under any state or federal law relating to creditors’ rights, including provisions of the Insolvency Laws relating to a Voidable Transfer, and if
Lender is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the advice of its counsel, then the amount of such Voidable Transfer or the amount of such Voidable Transfer that Lender is required or
elects to repay or restore, including all reasonable costs, expenses and attorneys’ fees incurred by Lender in connection therewith, and the Indebtedness shall automatically shall be revived, reinstated and restored by such amount and shall
exist as though such Voidable Transfer had never been made. 
 Section 15.16   Time is of the Essence. 

Borrower agrees that, with respect to each and every obligation and covenant contained in this Loan Agreement and the other Loan
Documents, time is of the essence. 
 Section 15.17   Final Agreement. 

THIS LOAN AGREEMENT ALONG WITH ALL OF THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE
SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE 

  

					
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PARTIES. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Loan Agreement and the other Loan Documents. This Loan
Agreement, the other Loan Documents and any of their provisions may not be waived, modified, amended, discharged or terminated except by an agreement in writing signed by the party against which the enforcement of the waiver, modification,
amendment, discharge or termination is sought, and then only to the extent set forth in that agreement. 
 Section 15.18  
WAIVER OF TRIAL BY JURY. 
 TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF BORROWER AND LENDER
(A) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS LOAN AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER AND LENDER, THAT IS TRIABLE OF RIGHT BY A JURY
AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE
BENEFIT OF COMPETENT LEGAL COUNSEL. 
 [Remainder of Page Intentionally Blank] 

  

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

									
	BORROWER:
	
	KBS Legacy Partners Greer LLC, a Delaware limited liability company
		
	 By:    
	 	KBS Legacy Partners Properties LLC, a
		 	Delaware limited liability company,
		 	its sole member
			
		 	By:    	 	 KBS Legacy Partners Limited Partnership,
 a Delaware limited partnership,
 its sole member

				
		 		 	By:    	 	 KBS Legacy Partners Apartment
 REIT, Inc., a Maryland corporation,
 its sole general
partner

					
		 		 		 	By:	 	 /s/ Guy K. Hays

		 		 		 	Name:	 	Guy K. Hays
		 		 		 	Title: Executive Vice President

 [SIGNATURES CONTINUE ON FOLLOWING PAGE] 

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	S-1
	 Signature Page
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 [SIGNATURES CONTINUED FROM PREVIOUS PAGE] 

 

					
	LENDER:	 	
		
	 BERKELEY POINT CAPITAL LLC, a Delaware
 limited liability company
	 	
			
	By:	 	 /s/ Heidi Marrin
	 	

 
					
	Name:	 	Heidi Marrin	 	

 
					
	Title:	 	Vice President	 	

 
					
			
	By:	 	
/s/Deborah Demoney                
                      
	 	

 
					
	Name:	 	Deborah Demoney	 	

 
					
	Title:	 	Associate	 	

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	S-2
	 Signature Page
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 SCHEDULE 1 TO  

MULTIFAMILY LOAN AND SECURITY AGREEMENT 
 Definitions Schedule 
 (Interest Rate Type – Fixed Rate)

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

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

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

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

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

“Bankruptcy Event” means any one or more of the following: 
 (a)        the commencement, filing or continuation of a voluntary case or proceeding under one or more of the Insolvency Laws by Borrower; 

(b)        the acknowledgment in writing by Borrower (other than to Lender in connection with a
workout) that it is unable to pay its debts generally as they mature; 
 (c)        the
making of a general assignment for the benefit of creditors by Borrower; 

(d)        the commencement, filing or continuation of an involuntary case or proceeding under
one or more Insolvency Laws against Borrower; or 
 (e)        the appointment of a
receiver, liquidator, custodian, sequestrator, trustee or other similar officer who exercises control over Borrower or any substantial part of the assets of Borrower; 

  

					
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provided, however, that any proceeding or case under (d) or (e) above shall not be a Bankruptcy Event until the ninetieth (90th) day after filing (if not earlier dismissed) so long
as such proceeding or case occurred without the consent, encouragement or active participation of Borrower, Guarantor, Key Principal, Principal or any Borrower Affiliate (in which event such case or proceeding shall be a Bankruptcy Event
immediately). 
 “Borrower” means, individually (and jointly and severally (solidarily instead for purposes of Louisiana law)
if more than one), the entity (or entities) identified as “Borrower” in the first paragraph of the Loan Agreement. 

“Borrower Affiliate” means, as to Borrower, Guarantor or Key Principal: 

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

(b)        any entity in which Borrower, Guarantor or Key Principal directly or indirectly owns,
controls or holds with the power to vote, twenty percent (20%) or more of the outstanding voting securities of such entity; 
 (c)        any entity controlled by or under common control with, or which controls Borrower, Guarantor or Key Principal (the term “control” for these
purposes means the ability, whether by the ownership of shares or other equity interests, by contract or otherwise, to elect a majority of the directors of a corporation, to make management decisions on behalf of, or independently to select the
managing partner of, a partnership, or otherwise to have the power independently to remove and then select a majority of those individuals exercising managerial authority over an entity, and control shall be conclusively presumed in the case of the
ownership of fifty percent (50%) or more of the equity interests); 

(d)        any partner, manager, member or shareholder of Borrower, Guarantor or Key Principal;
or 
 (e)        any other individual that is related (to the third degree of
consanguinity) by blood or marriage to Borrower, Guarantor or Key Principal. 
 “Borrower Requested Repairs” means repairs not
listed on the Required Repair Schedule requested by Borrower to be reimbursed from the Repairs Escrow Account. 
 “Borrower Requested
Replacements” means replacements not listed on the Required Replacement Schedule requested by Borrower to be reimbursed from the Replacement Reserve Account. 
 “Borrower’s General Business Address” has the meaning set forth in the Summary of Loan Terms. 
 “Borrower’s Notice Address” has the meaning set forth in the Summary of Loan Terms. 

  

					
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(Alta Crescent Apartments) 

 “Business Day” means any day other than Saturday, Sunday or any other day on which Lender
is not open for business. 
 “Collateral Account Funds” means, collectively, the funds on deposit in any or all of the
Collateral Accounts, including the Reserve/Escrow Account Funds. 
 “Collateral Accounts” means any account designated as such
by Lender pursuant to a Collateral Agreement or as established pursuant to this Loan Agreement, including the Reserve/Escrow Account. 

“Collateral Agreement” means any separate agreement between Borrower and Lender for the establishment of any other fund, reserve or
account. 
 “Completion Period” has the meaning set forth in the Summary of Loan Terms. 

“Condemnation Action” has the meaning set forth in the Security Instrument. 
 “Controlling Interest” means: 

(a)        with respect to any entity, the following: 

(1)        if such entity is a general partnership or a joint venture, fifty-one
percent (51%) of all general partnership or joint venture interests in such entity; 

(2)        if such entity is a limited partnership: 

(A)        any general partnership interest; or 

(B)        fifty-one percent (51%) of all limited partnership interests in
such entity; 
 (3)        if such entity is a limited liability company
or a limited liability partnership: 
 (A)        fifty-one percent
(51%) of all membership or other ownership interests in such entity; 

(B)        the amount of membership or ownership interests sufficient to have
the power to appoint or change any manager; or 
 (C)        the
interest of any manager; 
 (4)        if such entity is a corporation
(other than a Publicly-Held Corporation) with only one class of voting stock, fifty-one percent (51%) of voting stock in such corporation; 

  

					
	 Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 3
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(Alta Crescent Apartments) 

 (5)        if such entity is a
corporation (other than a Publicly-Held Corporation) with more than one class of voting stock, the amount of shares of voting stock sufficient to have the power to elect the majority of directors of such corporation; 

(6)        if such entity is a trust (other than a land trust or a Publicly-Held
Trust), the trustee of such trust or the ability to remove, appoint or substitute the trustee of such trust (unless the trustee of such trust after such removal, appointment or substitution is a trustee identified in the trust agreement approved by
Lender); or 
 (b)        the power or right in any agreement (including provisions
contained in the organizational and/or governing documents of Borrower, Guarantor or Key Principal) to control or otherwise limit or modify, directly or indirectly, the management and operations of Borrower, Guarantor or Key Principal, including the
power to: 
 (1)        cause a change in or replacement of the Person
that controls the management and operations of Borrower, Guarantor or Key Principal; or 

(2)        limit or otherwise modify the extent of such Person’s control
over the management and operations of Borrower, Guarantor or Key Principal. 
 “Credit Score” means a numerical value or a
categorization derived from a statistical tool or modeling system used to measure credit risk and predict the likelihood of certain credit behaviors, including default. 
 “Debt Service Amounts” means the Monthly Debt Service Payments and all other amounts payable under the Loan Agreement, the Note, the Security Instrument or any other Loan Document.

 “Default Rate” means an interest rate equal to the lesser of: 

(a)        the sum of the Interest Rate plus four (4) percentage points; or 

(b)        the maximum interest rate which may be collected from Borrower under applicable law.

 “Definitions Schedule” means this Schedule 1 (Definitions Schedule) to the Loan Agreement. 

“Effective Date” has the meaning set forth in the Summary of Loan Terms. 
 “Employee Benefit Plan” has the meaning as defined in Section 3(3) of ERISA. 

“Enforcement Costs” has the meaning set forth in the Security Instrument. 
 “Environmental Indemnity Agreement” means that certain Environmental Indemnity Agreement dated as of the Effective Date made by Borrower to and for the benefit of Lender, as the same may
be amended, restated, replaced, supplemented, or otherwise modified from time to time. 

  

					
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 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 4
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(Alta Crescent Apartments) 

 “Environmental Laws” has the meaning set forth in the Environmental Indemnity Agreement.

 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“Event of Default” means the occurrence of any event listed in Section 14.01 (Events of Default) of the Loan Agreement. 

“Exceptions to Representations and Warranties” means the exceptions to Borrower’s representations and warranties set forth on
Schedule 7 (Exceptions to Representations and Warranties Schedule) to the Loan Agreement. 
 “First Payment Date” has
the meaning set forth in the Summary of Loan Terms. 
 “First Principal and Interest Payment Date” has the meaning set forth in
the Summary of Loan Terms, if applicable. 
 “Fixed Rate” has the meaning set forth in the Summary of Loan Terms. 

“Fixtures” has the meaning set forth in the Security Instrument. 
 “Foreclosure Event” means: 

(a)        foreclosure under the Security Instrument; 

(b)        any other exercise by Lender of rights and remedies (whether under the Security
Instrument or under applicable law, including Insolvency Laws) as holder of the Mortgage Loan and/or the Security Instrument, as a result of which Lender (or its designee or nominee) or a third party purchaser becomes owner of the Mortgaged
Property; 
 (c)        delivery by Borrower to Lender (or its designee or nominee) of a
deed or other conveyance of Borrower’s interest in the Mortgaged Property in lieu of any of the foregoing; or 

(d)        in Louisiana, any dation en paiement. 

“Governmental Authority” means any board, commission, department or body of any municipal, county, state or federal governmental unit,
or any subdivision of any of them, that has or acquires jurisdiction over Borrower or the Mortgaged Property or the use, operation or improvement of the Mortgaged Property. 
 “Guarantor” means any guarantor of the Indebtedness or any other obligation of Borrower under any Loan Document. 
 “Guarantor Bankruptcy Event” means any one or more of the following: 
 (a)        the commencement, filing or continuation of a voluntary case or proceeding under one or more of the Insolvency Laws by Guarantor; 

  

					
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 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 5
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(Alta Crescent Apartments) 

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

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

 (d)        the commencement, filing or continuation of an involuntary case or
proceeding under one or more Insolvency Laws against Guarantor; or 
 (e)        the
appointment of a receiver, liquidator, custodian, sequestrator, trustee or other similar officer who exercises control over Guarantor or any substantial part of the assets of Guarantor, as applicable; 

provided, however, that any proceeding or case under (d) or (e) above shall not be a Guarantor Bankruptcy Event until the ninetieth
(90th) day after filing (if not earlier dismissed) so long as such proceeding or case occurred without the consent, encouragement or active participation of Borrower, Guarantor, Key Principal, Principal, or any Borrower Affiliate (in which
event such case or proceeding shall be a Guarantor Bankruptcy Event immediately). 
 “Guarantor’s General Business
Address” has the meaning set forth in the Summary of Loan Terms. 
 “Guarantor’s Notice Address” has the meaning
set forth in the Summary of Loan Terms. 
 “Guaranty” means, individually and collectively, any Payment Guaranty, Non-Recourse
Guaranty or other guaranty executed by Guarantor in connection with the Mortgage Loan. 
 “Immediate Family Members” means a
child, grandchild, spouse, sibling, or parent, each of whom must have obtained a legal age of majority. 
 “Imposition
Deposits” has the meaning set forth in the Security Instrument. 
 “Impositions” has the meaning set forth in the
Security Instrument. 
 “Improvements” has the meaning set forth in the Security Instrument. 

“Indebtedness” has the meaning set forth in the Security Instrument. 
 “Initial Replacement Reserve Deposit” has the meaning set forth in the Summary of Loan Terms. 
 “Insolvency Laws” means the United States Bankruptcy Code, 11 U.S.C. Section 101, et seq., together with any other federal or state law affecting debtor and creditor rights or
relating to the bankruptcy, insolvency, reorganization, arrangement, moratorium, readjustment of debt, dissolution, liquidation or similar laws, proceedings, or equitable principles affecting the enforcement of creditors’ rights, as amended
from time to time. 
 “Insolvent” means: 

  

					
	 Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 6
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(Alta Crescent Apartments) 

 (a) that the sum total of all of a specified Person’s liabilities (whether secured or
unsecured, contingent or fixed, or liquidated or unliquidated) is in excess of the value of such Person’s non-exempt assets, i.e., all of the assets of such Person that are available to satisfy claims of creditors; or 

(b) such Person’s inability to pay its debts as they become due. 
 “Intended Prepayment Date” means the date upon which Borrower intends to make a prepayment on the Mortgage Loan, as set forth in the Prepayment Notice. 

“Interest Accrual Method” has the meaning set forth in the Summary of Loan Terms. 

“Interest Only Term” has the meaning set forth in the Summary of Loan Terms. 
 “Interest Rate” means the Fixed Rate. 
 “Interest Rate Type” has
the meaning set forth in the Summary of Loan Terms. 
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as
amended. 
 “Investor” means any Person to whom Lender intends to sell, transfer, deliver or assign the Mortgage Loan in the
secondary mortgage market. 
 “Key Principal” means, collectively: 

(a)        the natural person(s) or entity that controls and manages Borrower that Lender
determines is critical to the successful operation and management of Borrower and the Mortgaged Property, as identified as such in the Summary of Loan Terms; or 
 (b)        any natural person or entity who becomes a Key Principal after the date of the Loan Agreement and is identified as such in an assumption agreement, or
another amendment or supplement to the Loan Agreement. 
 “Key Principal’s General Business Address” has the meaning set
forth in the Summary of Loan Terms. 
 “Key Principal’s Notice Address” has the meaning set forth in the Summary of Loan
Terms. 
 “Land” means the land described in Exhibit A to the Security Instrument. 

“Last Interest Only Payment Date” has the meaning set forth in the Summary of Loan Terms, if applicable. 

“Late Charge” means an amount equal to the delinquent amount then due under the Loan Documents multiplied by five percent (5%).

 “Leases” has the meaning set forth in the Security Instrument. 

  

					
	 Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 7
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(Alta Crescent Apartments) 

 “Lender” means the entity identified as “Lender” in the first paragraph of the
Loan Agreement and its transferees, successors and assigns, or any subsequent holder of the Note. 
 “Lender’s General Business
Address” has the meaning set forth in the Summary of Loan Terms. 
 “Lender’s Notice Address” has the meaning set
forth in the Summary of Loan Terms. 
 “Lender’s Payment Address” has the meaning set forth in the Summary of Loan Terms.

 “Lien” has the meaning set forth in the Security Instrument. 
 “Loan Agreement” means the Multifamily Loan and Security Agreement dated as of the Effective Date executed by and between Borrower and Lender to which this Definitions Schedule is
attached, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Loan
Amount” has the meaning set forth in the Summary of Loan Terms. 
 “Loan Application” means the application for the
Mortgage Loan submitted by Borrower to Lender. 
 “Loan Documents” means the Note, the Loan Agreement, the Security Instrument,
the Environmental Indemnity Agreement, the Guaranty, all guaranties, all indemnity agreements, all Collateral Agreements, all O&M Programs, and any other documents now or in the future executed by Borrower, Guarantor, Key Principal, any
guarantor or any other person in connection with the Mortgage Loan, as such documents may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Loan Servicer” means the entity that from time to time is designated by Lender to collect payments and deposits and receive notices under the Note, the Loan Agreement, the Security
Instrument and any other Loan Document, and otherwise to service the Mortgage Loan for the benefit of Lender. Unless Borrower receives notice to the contrary, the Loan Servicer shall be the Lender originally named on the Summary of Loan Terms.

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

“Loan Year” has the meaning set forth in the Summary of Loan Terms. 
 “Material Commercial Lease” means any non-Residential Lease, including any master lease (which term “master lease” shall include any master lease to a single corporate
tenant), other than: 
 (a)        a non-Residential Lease that comprises less than five
percent (5%) of total gross income of the Mortgaged Property on an annualized basis, so long as the lease is not a cell tower lease or a solar (power) lease; 

  

					
	 Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 8
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 (b)        a cable television lease, so long as the
lessee is not a Borrower Affiliate, Key Principal or Guarantor; 
 (c)        storage
units leased pursuant to any Residential Lease; or 
 (d)        a laundry lease, so
long as: 
 (1)        the lessee is not a Borrower Affiliate, Key Principal or
Guarantor; 
 (2)        the rent payable is not below-market (as determined by
Lender); and 
 (3)        such laundry lease is terminable for cause by lessor.

 “Maturity Date” has the meaning set forth in the Summary of Loan Terms. 

“Maximum Inspection Fee” has the meaning set forth in the Summary of Loan Terms. 

“Maximum Repair Cost” shall be the amount(s) set forth in the Required Repair Schedule, if any. 

“Maximum Repair Disbursement Interval” has the meaning set forth in the Summary of Loan Terms. 

“Maximum Replacement Reserve Disbursement Interval” has the meaning set forth in the Summary of Loan Terms. 

“Minimum Repairs Disbursement Amount” has the meaning set forth in the Summary of Loan Terms. 

“Minimum Replacement Reserve Disbursement Amount” has the meaning set forth in the Summary of Loan Terms. 

“Monthly Debt Service Payment” has the meaning set forth in the Summary of Loan Terms. 

“Monthly Replacement Reserve Deposit” has the meaning set forth in the Summary of Loan Terms. 

“Mortgage Loan” means the mortgage loan made by Lender to Borrower in the principal amount of the Note made pursuant to the Loan
Agreement, evidenced by the Note and secured by the Loan Documents that are expressly stated to be security for the Mortgage Loan. 

“Mortgaged Property” has the meaning set forth in the Security Instrument. 
 “Multifamily Project” has the meaning set forth in the Summary of Loan Terms. 

“Multifamily Project Address” has the meaning set forth in the Summary of Loan Terms. 

  

					
	 Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 9
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 “Non-Recourse Guaranty” means, if applicable, that certain Guaranty of Non-Recourse
Obligations of even date herewith executed by Guarantor to and for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Note” means that certain Multifamily Note of even date herewith in the original principal amount of the stated Loan Amount made by Borrower in favor of Lender, and all schedules, riders,
allonges and addenda attached thereto, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Notice” means any notices, requests, demands or other communications. 
 “O&M Program” has the meaning set forth in the Environmental Indemnity Agreement. 
 “OFAC” means the United States Treasury Department, Office of Foreign Assets Control, and any successor thereto. 
 “Payment Date” means the First Payment Date and the first day of each month thereafter until the Mortgage Loan is fully paid. 
 “Payment Guaranty” means, if applicable, that certain Guaranty (Payment) of even date herewith executed by Guarantor to and for the benefit of Lender, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time. 
 “Permitted Encumbrance” has the meaning set forth
in the Security Instrument. 
 “Permitted Prepayment Date” means the last Business Day of a calendar month. 

“Person” means an individual, an estate, a trust, a corporation, a partnership, a limited liability company or any other organization or
entity (whether governmental or private). 
 “Personalty” has the meaning set forth in the Security Instrument. 

“Prepayment Lockout Period” has the meaning set forth in the Summary of Loan Terms. 

“Prepayment Notice” means the written notice that Borrower is required to provide to Lender in accordance with Section 2.03
(Lockout/Prepayment) of the Loan Agreement in order to make a prepayment on the Mortgage Loan, which shall include, at a minimum, the Intended Prepayment Date. 
 “Prepayment Premium” means the amount payable by Borrower in connection with a prepayment of the Mortgage Loan, as provided in Section 2.03 (Lockout/Prepayment) of the Loan Agreement
and calculated in accordance with the Prepayment Premium Schedule. 
 “Prepayment Premium Period End Date” or
“Yield Maintenance Period End Date” has the meaning set forth in the Summary of Loan Terms. 

  

					
	 Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 10
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 “Prepayment Premium Period Term” or “Yield Maintenance Period Term” has
the meaning set forth in the Summary of Loan Terms. 
 “Prepayment Premium Schedule” means that certain Schedule 4
(Prepayment Premium) to the Loan Agreement. 
 “Principal” means any Person owning at least a twenty-five percent
(25%) interest (direct or indirect) in Borrower, Guarantor or Key Principal. 
 “Prohibited Person” means: 

(a)        any Person with whom Lender or Fannie Mae is prohibited from doing business pursuant
to any law, rule, regulation, judicial proceeding or administrative directive; or 

(b)        any Person identified on the United States Department of Housing and Urban
Development’s “Limited Denial of Participation, HUD Funding Disqualifications and Voluntary Abstentions List,” or on the General Services Administration’s “Excluded Parties List System,” each of which may be amended
from time to time, and any successor or replacement thereof; or 
 (c)        any Person
that is determined by Fannie Mae to pose an unacceptable credit risk due to the aggregate amount of debt of such Person owned or held by Fannie Mae; or 
 (d)        any Person that has caused any unsatisfactory experience of a material nature with Fannie Mae or Lender, such as a default, fraud, intentional
misrepresentation, litigation, arbitration or other similar act. 
 “Property Jurisdiction” has the meaning set forth in the
Security Instrument. 
 “Property Square Footage” has the meaning set forth in the Summary of Loan Terms. 

“Publicly-Held Corporation” means a corporation, the outstanding voting stock of which is registered under Sections 12(b) or 12(g) of
the Securities Exchange Act of 1934, as amended. 
 “Publicly-Held Trust” means a real estate investment trust the outstanding
voting shares or beneficial interests of which are registered under Sections 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended. 

“Remedial Work” means, in connection with the Mortgaged Property, any investigation, site monitoring, containment, clean-up, restoration
or other remedial work necessary to comply with any Environmental Law or order of any Governmental Authority. 
 “Rents” has
the meaning set forth in the Security Instrument. 
 “Repair Threshold” has the meaning set forth in the Summary of Loan Terms.

 “Repairs” means, individually and collectively, the Required Repairs, Borrower Requested Repairs, and Additional Lender
Repairs. 

  

					
	 Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 11
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 “Repairs Escrow Account” means the account established by Lender into which the Repairs
Escrow Deposit is deposited to fund the Repairs. 
 “Repairs Escrow Account Administrative Fee” has the meaning set forth in
the Summary of Loan Terms. 
 “Repairs Escrow Deposit” has the meaning set forth in the Summary of Loan Terms. 

“Replacement Reserve Account” means the account established by Lender into which the Replacement Reserve Deposits are deposited to fund
the Replacements. 
 “Replacement Reserve Account Administration Fee” has the meaning set forth in the Summary of Loan Terms.

 “Replacement Reserve Account Interest Disbursement Frequency” has the meaning set forth in the Summary of Loan Terms.

 “Replacement Reserve Deposits” means the Initial Replacement Reserve Deposit, Monthly Replacement Reserve Deposits and any
other deposits to the Replacement Reserve Account required by the Loan Agreement. 
 “Replacement Threshold” has the meaning
set forth in the Summary of Loan Terms. 
 “Replacements” means, individually and collectively, the Required Replacements,
Borrower Requested Replacements and Additional Lender Replacements. 
 “Required Repair Schedule” means that certain
Schedule 6 (Required Repairs) to the Loan Agreement. 
 “Required Repairs” means those items listed on the Required
Repair Schedule. 
 “Required Replacement Schedule” means that certain Schedule 5 (Required Replacements) to the Loan
Agreement. 
 “Required Replacements” means those items listed on the Required Replacement Schedule. 

“Reserve/Escrow Account Funds” means, collectively, the funds on deposit in the Reserve/Escrow Accounts. 

“Reserve/Escrow Accounts” means, together, the Replacement Reserve Account and the Repairs Escrow Account. 

“Residential Lease” means a leasehold interest in an individual dwelling unit and shall not include any master lease. 

“Restoration” means restoring and repairing the Mortgaged Property to the equivalent of its original economic and physical condition or
to a condition approved by Lender following a casualty. 

  

					
	 Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 12
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 “Review Fee” means the non-refundable fee of Three Thousand Dollars ($3,000) payable to
Lender in connection with a Transfer for which Lender’s consent is required (including any assumption of the Mortgage Loan). 

“Schedule of Interest Rate Type Provisions” means that certain Schedule 3 (Schedule of Interest Rate Type Provisions) to the Loan
Agreement. 
 “Security Instrument” means that certain multifamily mortgage, deed to secure debt or deed of trust executed and
delivered by Borrower as security for the Mortgage Loan and encumbering the Mortgaged Property, including all riders or schedules attached thereto, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

 “Servicing Arrangement” means any arrangement between Lender and the Loan Servicer for loss sharing or interim advancement
of funds. 
 “Summary of Loan Terms” means that certain Schedule 2 (Summary of Loan Terms) to the Loan Agreement.

 “Taxes” has the meaning set forth in the Security Instrument. 
 “Title Policy” means the mortgagee’s loan policy of title insurance issued in connection with the Mortgage Loan and insuring the lien of the Security Instrument as set forth therein,
as approved by Lender. 
 “Total Parking Spaces” has the meaning set forth in the Summary of Loan Terms. 

“Total Residential Units” has the meaning set forth in the Summary of Loan Terms. 

“Transfer” means: 
 (a)        a sale, assignment, transfer or other disposition (whether voluntary, involuntary, or by operation of law); 

(b)        a granting, pledging, creating or attachment of a lien, encumbrance or security
interest (whether voluntary, involuntary, or by operation of law); 
 (c)        an
issuance or other creation of a direct or indirect ownership interest; 
 (d)        a
withdrawal, retirement, removal or involuntary resignation of any owner or manager of a legal entity; or 

(e)        a merger, consolidation, dissolution or liquidation of a legal entity. 

“Transfer Fee” means a fee equal to one percent (1%) of the unpaid principal balance of the Mortgage Loan payable to Lender in
connection with a Transfer of the Mortgaged Property or of an ownership interest in Borrower, Guarantor or Key Principal for which Lender’s consent is required (including in connection with an assumption of the Mortgage Loan). 

  

					
	 Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 13
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 “UCC” has the meaning set forth in the Security Instrument. 

“UCC Collateral” has the meaning set forth in the Security Instrument. 
 “Voidable Transfer” means any fraudulent conveyance, preference or other voidable or recoverable payment of money or transfer of property. 

“Yield Maintenance Period End Date” or “Prepayment Premium Period End Date” has the meaning set forth in the Summary of
Loan Terms. 
 “Yield Maintenance Period Term” or “Prepayment Premium Period Term” has the meaning set forth
in the Summary of Loan Terms. 
  
 [BORROWER’S
INITIALS FOLLOW ON NEXT PAGE] 

  

					
	 Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 14
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 (CONTINUED FROM PREVIOUS PAGE) 

 

	
	 

	Borrower Initials

  

					
	 Schedule 1 to Multifamily Loan and
 Security Agreement - Definitions Schedule
	  	
	(Interest Rate - Fixed Rate)	  	Form 6101.FR	  	Page 15
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 SCHEDULE 2 TO  

MULTIFAMILY LOAN AND SECURITY AGREEMENT 
 Summary of Loan Terms 
 (Interest Rate Type - Fixed Rate) 

 

			
	I.
            GENERAL PARTY AND MULTIFAMILY PROJECT INFORMATION
	Borrower	 	  
 KBS LEGACY PARTNERS GREER LLC, a Delaware limited liability company
  

	Lender	 	  
 BERKELEY POINT CAPITAL LLC, a Delaware limited liability company
  

	Key Principal	 	  
 KBS LEGACY PARTNERS PROPERTIES LLC, a Delaware limited liability company
  

	Guarantor	 	  
 KBS LEGACY PARTNERS PROPERTIES LLC, a Delaware limited liability company
  

	Multifamily Project	 	  
 Alta Crescent Apartments
  

	ADDRESSES            
	Borrower’s General Business
Address	 	  
 c/o KBS Legacy Partners Properties LLC
 620 Newport Center Drive, Suite 1300

Newport Beach, California 92660
  

	Borrower’s Notice Address	 	  
 c/o Legacy Partners Residential, Inc.
 4000 East Third Avenue, Suite 600

Foster City, California 94404
 Attention: Dean
Henry/Guy K. Hays
 dhenry@legacypartners.com
 hays@legacypartners.com
  

	Multifamily Project Address	 	  
 401 Elizabeth Sarah Blvd., Greer, SC 29650
  

	Multifamily Project County	 	  
 Greenville County
  

  

					
	 Schedule 2 to Multifamily Loan and
 Security Agreement - Summary of Loan
	  	
	Terms (Interest Rate Type - Fixed Rate)	  	Form 6102.FR	  	Page 1
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

			
	Key Principal’s General Business Address	 	  

c/o KBS Legacy Partners Properties LLC
 620
Newport Center Drive, Suite 1300
 Newport Beach, California 92660
  

	Key Principal’s Notice Address	 	  
 c/o Legacy Partners Residential, Inc.
 4000 East Third Avenue, Suite 600

Foster City, California 94404
 Attention: Dean
Henry/Guy K. Hays
 dhenry@legacypartners.com
 hays@legacypartners.com
  

	Guarantor’s General Business
Address	 	  
 c/o KBS Legacy Partners Properties LLC
 620 Newport Center Drive, Suite 1300

Newport Beach, California 92660
  

	Guarantor’s Notice Address	 	  
 c/o Legacy Partners Residential, Inc.
 4000 East Third Avenue, Suite 600

Foster City, California 94404
 Attention: Dean
Henry/Guy K. Hays
 dhenry@legacypartners.com
 hays@legacypartners.com
  

	Lender’s General Business Address	 	  
 Berkeley Point Capital LLC
 4550 Montgomery Avenue, Suite 1100

Bethesda, Maryland 20814
  

	Lender’s Notice Address	 	  
 Berkeley Point Capital LLC
 Attention: Director, Loan Servicing

One Beacon Street, 14th Floor
 Boston,
Massachusetts 02108
 Servicing.Requests@BerkPoint.com

 

  

					
	 Schedule 2 to Multifamily Loan and
 Security Agreement - Summary of Loan
	  	
	Terms (Interest Rate Type - Fixed Rate)	  	Form 6102.FR	  	Page 2
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

			
	Lender’s Payment Address	 	  

Regular Mail:
 Berkeley Point Capital
LLC
 Lockbox
 Box 773194

3194 Solutions Center
 Chicago, Illinois
60677-3001
  
 or by overnight delivery:

Berkeley Point Capital LLC
 Lockbox

Box 773194
 350 East Devon Avenue

Itasca, Illinois 60143
  
 or by wire transfer:
 PNC Bank, N.A.
 ABA# 043000096
 Berkeley Point Capital LLC
 Credit#: 1019788912
 Ref Loan#: 077040328

 

  

			
	II.         MULTIFAMILY
PROJECT INFORMATION
	Property Square Footage	 	  
 21.68 acres
  

	Total Parking Spaces	 	  
 418
  

	Total Residential Units	 	  
 240
  

  

			
	III.
        MORTGAGE LOAN INFORMATION
	Amortization Period	 	  
 360 months
  

	Amortization Type	 	  
 [Select only one:]
  ̈
    Amortizing
  ̈     Full Term Interest Only

x     Partial Interest Only
  

  

					
	 Schedule 2 to Multifamily Loan and
 Security Agreement - Summary of Loan
	  	
	Terms (Interest Rate Type - Fixed Rate)	  	Form 6102.FR	  	Page 3
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

			
	 	 
	 Effective
Date
  
	 	 May 3, 2012

 

	 	 
	 First
Payment Date
  
	 	 The first day of July, 2012

 

	 	 
	 First
Principal and Interest Payment Date
  
	 	 The first day of July, 2013

 

	 	 
	 Fixed
Rate
  
	 	 3.47%

 

	 	 
	Interest Accrual Method	 	 x         Actual/360 (computed on the basis of a three hundred sixty (360) day year and the actual number of calendar days during the applicable month, calculated
by multiplying the unpaid principal balance of the Mortgage Loan by the Interest Rate, dividing the product by three hundred sixty (360), and multiplying the quotient obtained by the actual number of days elapsed in the applicable
month).
  

	 	 
	 Interest
Only Term
  
	 	 12 months

 

	 	 
	 Interest
Rate
  
	 	 The Fixed Rate

 

	 	 
	 Interest
Rate Type
  
	 	 Fixed Rate

 

	 	 
	 Last
Interest Only Payment Date
  
	 	 The first day of June, 2013

 

	 	 
	 Loan
Amount
  
	 	 $14,560,000.00

 

	 	 
	 Loan
Term
  
	 	 84 months

 

	 	 
	 Loan
Year
  
	 	 The period beginning on
the Effective Date and ending on the last day of May, 2013 and each successive twelve (12) month period thereafter.
  

  

					
	 Schedule 2 to Multifamily Loan and
 Security Agreement - Summary of Loan
	  	
	Terms (Interest Rate Type - Fixed Rate)	  	Form 6102.FR	  	Page 4
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

			
	Maturity Date	 	  

The first day of June, 2019, or any earlier date on which the unpaid principal balance of the Mortgage Loan becomes due and payable by
acceleration or otherwise.
  

	Monthly Debt Service Payment	 	  
 For Partial Interest Only (Actual/360):
  

(i)          $42,102.67 for the First Payment
Date;
  

(ii)         for each Payment Date thereafter
through and including the Last Interest Only Payment Date:
  
  (a)         $39,295.82 if the prior month was a 28-day month;
  

 (b)         $40,699.24 if the prior month was a 29-day month;

 
  (c)
        $42,102.67 if the prior month was a 30-day month; and
  

 (d)         $43,506.09 if the prior month was a 31-day month;
and
  

(iii)        $65,137.32 for the First Principal and
Interest Payment Date and each Payment Date thereafter until the Mortgage Loan is fully paid.
  

	Prepayment Lockout Period	 	  
 0 year(s) from the Effective Date
  

  

					
	 Schedule 2 to Multifamily Loan and
 Security Agreement - Summary of Loan
	  	
	Terms (Interest Rate Type - Fixed Rate)	  	Form 6102.FR	  	Page 5
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

			
	IV.         YIELD
MAINTENANCE/PREPAYMENT PREMIUM INFORMATION
	  

Yield Maintenance Period End Date
  

or        

 
 Prepayment Premium Period End Date

 
	 	  
 The last day of November, 2018.

	  

Yield Maintenance Period Term
  

or        

 
 Prepayment Premium Period Term

 
	 	78 months

  

			
	V.         RESERVE
INFORMATION
	Completion Period	 	  
 Within six months after the Effective Date or as otherwise shown on the Required Repair Schedule.

 

	 	 
	 Initial
Replacement Reserve Deposit
  
	 	 $-0-

 

	 	 
	 Maximum
Inspection Fee
  
	 	 $1,000

 

	 	 
	 Maximum
Repair Disbursement Interval
  
	 	 One time per calendar month

 

	 	 
	 Maximum
Replacement Reserve Disbursement Interval
  
	 	 One time per calendar month

 

	 	 
	 Minimum
Repairs Disbursement Amount
  
	 	 $5,000

 

	 	 
	 Minimum
Replacement Reserve Disbursement Amount
  
	 	 $5,000

 

	 	 
	 Monthly
Replacement Reserve Deposit
  
	 	 $5,000

 

	 	 
	 Repair
Threshold
  
	 	 $10,000

 

  

					
	 Schedule 2 to Multifamily Loan and
 Security Agreement - Summary of Loan
	  	
	Terms (Interest Rate Type - Fixed Rate)	  	Form 6102.FR	  	Page 6
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

			
	 	 
	 Repairs
Escrow Account Administrative Fee
  
	 	$0.00, payable one time
	 	 
	 Repairs
Escrow Deposit
  
	 	$-0-
	 	 
	
Replacement Reserve Account Administration Fee

 
	 	$0.00, payable annually
	 	 
	
Replacement Reserve Account Interest Disbursement Frequency

 
	 	quarterly
	 	 
	
Replacement Threshold
  
	 	$10,000

 [BORROWER’S INITIALS FOLLOW ON NEXT PAGE] 

  

					
	 Schedule 2 to Multifamily Loan and
 Security Agreement - Summary of Loan
	  	
	Terms (Interest Rate Type - Fixed Rate)	  	Form 6102.FR	  	Page 7
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 [CONTINUED FROM PREVIOUS PAGE] 

 

			
	 

 Borrower Initials
	 	

  

					
	 Schedule 2 to Multifamily Loan and
 Security Agreement - Summary of Loan
	  	
	Terms (Interest Rate Type - Fixed Rate)	  	Form 6102.FR	  	Page 8
	Fannie Mae	  	07-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 SCHEDULE 3 TO  

MULTIFAMILY LOAN AND SECURITY AGREEMENT 
 Schedule of Interest Rate Type Provisions 
 (Fixed Rate) 

 

	1.	Defined Terms. 

Capitalized terms not otherwise defined in this Schedule have the meanings given to such terms in the Definitions Schedule to the Loan
Agreement. 
  

	2.	Interest Accrual. 

Except as otherwise provided in the Loan Agreement, interest shall accrue at the Interest Rate until fully paid. 

 

			
	 

 Borrower Initials
	 	

  

					
	 Schedule 3 to Multifamily Loan and
 Security Agreement - Interest Rate Type
	  	
	Provisions (Fixed Rate)	  	Form 6103.FR	  	Page 1
	Fannie Mae	  	01-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 SCHEDULE 4 TO  

MULTIFAMILY LOAN AND SECURITY AGREEMENT 
 Prepayment Premium Schedule 
 (Standard Yield Maintenance – Fixed
Rate) 
  

	1.	Defined Terms. 

 All capitalized terms used but not defined in this Prepayment Premium Schedule shall have the meanings assigned to them in the Loan Agreement. 

 

	2.	Prepayment Premium. 

 Any Prepayment Premium payable under Section 2.03 (Lockout/Prepayment) of the Loan Agreement shall be computed as follows: 

(a)        If the prepayment is made at any time after the Effective Date and
before the Yield Maintenance Period End Date, the Prepayment Premium shall be the greater of: 

(1)        one percent (1%) of the amount of principal being
prepaid; or 
 (2)        the product obtained by
multiplying: 
 (A)        the amount of principal
being prepaid, 
 by 

(B)        the difference obtained by subtracting from the Fixed
Rate on the Mortgage Loan, the Yield Rate (as defined below) on the twenty-fifth (25th) Business Day preceding (i) the Intended Prepayment Date, or (ii) the date Lender accelerates the Mortgage Loan or otherwise accepts a prepayment
pursuant to Section 2.03(d) (Application of Collateral) of the Loan Agreement, 

by 

(C)        the present value factor calculated using the
following formula: 
  

					
		  	 1 - (1 + r)-n/12
	  	
		  	      r	  	

  

					
		 	[r =	    	Yield Rate
			
		 	n =	    	the number of months remaining between (i) either of the following: (x) in the case of a voluntary prepayment, the last day of the month in which the prepayment is
made, or

  

					
	Schedule 4 to Multifamily Loan and	  		  	
	Security Agreement (Prepayment Premium	  		  	
	Schedule – Standard Yield Maintenance –	  		  	
	Fixed Rate)	  	Form 6104.01	  	Page 1
	Fannie Mae	  	01-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 
(y) in any other case, the date on which Lender accelerates the unpaid principal balance of the Mortgage Loan and (ii) the Yield Maintenance Period End Date. 

For purposes of this clause (2), the “Yield Rate” means the yield calculated by interpolating the
yields for the immediately shorter and longer term U.S. “Treasury constant maturities” (as reported in the Federal Reserve Statistical Release H.15 Selected Interest Rates (the “Fed Release”) under the heading “U.S.
government securities”) closest to the remaining term of the Yield Maintenance Period Term, as follows (rounded to three (3) decimal places): 

 

					
		 		    	

			
		 	a =	    	 the yield for the longer U.S. Treasury constant maturity

		 	b =	    	 the yield for the shorter U.S. Treasury constant maturity

		 	x =	    	 the term of the longer U.S. Treasury constant maturity

		 	y =	    	 the term of the shorter U.S. Treasury constant maturity

		 	z =	    	 “n” (as defined in the present value factor calculation above) divided by twelve (12).

 Notwithstanding any provision to the contrary, if “z” equals a
term reported under the U.S. “Treasury constant maturities” subheading in the Fed Release, the yield for such term shall be used, and interpolation shall not be necessary. If publication of the Fed Release is discontinued by the Federal
Reserve Board, Lender shall determine the Yield Rate from another source selected by Lender. Any determination of the Yield Rate by Lender will be binding absent manifest error.] 

(b)        If the prepayment is made on or after the Yield Maintenance Period End
Date but before the last calendar day of the fourth (4th) month prior to the month in which the Maturity Date occurs, the Prepayment Premium shall be one percent (1%) of the amount of principal being prepaid. 

  

					
	 Schedule 4 to Multifamily Loan and
 Security Agreement (Prepayment Premium
 Schedule – Standard Yield
Maintenance –
 Fixed Rate)
	  		  	
	  	Form 6104.01	  	Page 2
	Fannie Mae	  	01-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 (c)        Notwithstanding the
provisions of Section 2.03 (Lockout/Prepayment) of the Loan Agreement, no Prepayment Premium shall be payable with respect to any prepayment made on or after the last calendar day of the fourth (4th) month prior to the month in which the
Maturity Date occurs. 
  

			
	 

	 	
	Borrower Initials	 	

  

					
	 Schedule 4 to Multifamily Loan and
 Security Agreement (Prepayment Premium
 Schedule – Standard Yield Maintenance
–
 Fixed Rate)
	  		  	
	  	Form 6104.01	  	Page 3
	Fannie Mae	  	01-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 SCHEDULE 5 TO 
 MULTIFAMILY LOAN AND SECURITY AGREEMENT 
 REPLACEMENT RESERVE
REQUIREMENTS 
  

	A.	Initial Deposit to the Reserve Account: $0 

  

	B.	Monthly Deposit to the Reserve Account 

  

											
		    		 		 		 		 	
	Loan Year 1	    	$5,000            	 		 	Loan Year 6	 	$5,000            	 
	Loan Year 2	    	$5,000            	 		 	Loan Year 7	 	$5,000            	 
	Loan Year 3	    	$5,000            	 		 	Loan Year 8	 	$5,000            	 
	Loan Year 4	    	$5,000            	 		 	Loan Year 9	 	$5,000            	 
	Loan Year 5	    	$5,000            	 		 	Loan Year 10	 	$5,000            	 

  

	C.	The following outlines the Replacement Components for which a release from the Replacement Reserve Account may be requested: 

Item: 
 CARPETS (common area and unit interior) 
 DISHWASHERS 

MICROWAVES 

VINYL FLOORING 

ASPHALT/PARKING LOT SEALING 
 EXTERIOR PAINT/WALL FINISH/RE CAULKING 
 COMMON AREA FIXTURES & EQUIPMENT

 POOL EQUIPMENT 
 Requests for reimbursement of costs may only be made for the replacement of the components specified above. Releases will not be allowed for parts or ongoing repairs and maintenance of these items. Labor
costs for in-house personnel may not be included. 
 [BORROWER’S INITIALS FOLLOW ON NEXT PAGE] 

  

					
	Multifamily Loan and Security Agreement	  		  	
	(Non-Recourse)	  	Form 6001.NR	  	Page 1
	Schedule 5	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 [CONTINUED FROM PREVIOUS PAGE] 

 

			
	 

	 	
	Borrower Initials	 	

  

					
	Multifamily Loan and Security Agreement	  		  	
	(Non-Recourse)	  	Form 6001.NR	  	Page 2
	Schedule 5	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 SCHEDULE 6 TO 

MULTIFAMILY LOAN AND SECURITY AGREEMENT 
 Required Repair Schedule 
 COMPLETION REPAIR REQUIREMENTS 

 

							
	 	 	REPAIR ITEM/SCOPE (DETAIL)	  	TOTAL COST	  	BPC Use    
	 
	
Items to be completed prior to Closing:

 

	 1.
	 	 N/A

 
  
	  	 	  	 ̈
	 	 	 
	 Items to be completed within six months of Closing:
  
	  	 	  	 
	 1.
	 	Replace cracked and settled sections of concrete stairs. Three areas of cast in concrete step risers, two
along the southern side of the pool deck and one leading from the courtyard at the southwestern corner of building 2 were cracked through multiple times.	  	$1,400    	  	 ̈
	 
	
Items to be completed within one year of Closing:

 

	 1.
	 	5 units tested over 4.0 pCi/L radon levels. The five units require immediate retesting, if any units are
above the maximum level of 4.0 then long term radon testing is required. Long term radon testing is conducted for 90 days. If any units are above the maximum level of 4.0 then borrower agrees to install an acceptable radon mitigation system in the
unit. The units #’s that require retesting are 101, 203, 308, 507, and 1108. Additionally a Radon O&M will be required on units which have long term radon test results above 4.0.	  	$0    	  	 ̈
		 	TOTAL:  	  	$1,400    	  	
		 	25% FACTOR:  	  	NA    	  	
		 	TOTAL ESCROW AMOUNT:  	  	WAIVED    	  	

 [BORROWER’S INITIALS FOLLOW ON NEXT PAGE] 

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page 1
	 Schedule 6
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 [CONTINUED FROM PREVIOUS PAGE] 

 

	
	 

	Borrower Initials

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page 2
	 Schedule 6
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 SCHEDULE 7 TO 

MULTIFAMILY LOAN AND SECURITY AGREEMENT 
 Exceptions to Representations and Warranties Schedule 
 NONE. 

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page 1
	 Schedule 7
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 [CONTINUED FROM PREVIOUS PAGE] 

 

			
	 

	 	
	Borrower Initials	 	

  

					
	 Multifamily Loan and Security Agreement
	  	
	 (Non-Recourse)
	  	Form 6001.NR	  	Page 2
	 Schedule 7
	  	04-11	  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 EXHIBIT A 
 MODIFICATIONS TO MULTIFAMILY LOAN AND SECURITY AGREEMENT 
 (Waiver of
Imposition Deposits) 
 The foregoing Loan Agreement is hereby modified as follows: 

1.        Capitalized terms used and not specifically defined herein have the meanings given to
such terms in the Loan Agreement. 
 2.        The Definitions Schedule is hereby
amended by adding the following new definition in the appropriate alphabetical order: 
 “Insurance
Impositions” means the premiums for maintaining all Required Insurance Coverage. 
 “Required Insurance
Coverage” means the insurance coverage required pursuant to Article 9 (Insurance) of the Loan Agreement and under any other Loan Document. 
 3.        Section 12.02 (Imposition Deposits, Taxes, and Other Charges – Covenants) of the Loan Agreement is hereby amended by adding the following
provisions to the end thereof: 
  

	 	(b)	Conditional Waiver of Collection of Imposition Deposits. 

(1)        [Intentionally Omitted.] 

(2)        Notwithstanding anything contained in
this Section 12.02 (Imposition Deposits, Taxes, and Other Charges – Covenants) to the contrary, Lender hereby agrees to waive the collection of Imposition Deposits for Insurance Impositions, provided, that: 

(A)        Borrower pays such Insurance
Impositions directly to the carrier or agent ten (10) days prior to expiration or as necessary to prevent the Required Insurance Coverage from lapsing due to non-payment of premiums; 

(B)        Borrower provides Lender with proof
of payment acceptable to Lender of all Insurance Impositions within five (5) days of the date such Insurance Impositions are paid, and 

(C)        Borrower causes its insurance agent
to provide the Lender such certifications regarding the Required Insurance Coverage as Lender may request from time to time evidencing that the Insurance Impositions have been paid in a timely manner and

  

					
	 Modifications to Multifamily Loan and
	  	
	 Security Agreement (Waiver of Imposition
	  		  	
	 Deposits)
	  	Form 6228	  	Page 1
	 Fannie Mae
	  		  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 
that all of the Required Insurance Coverage is in full force and effect. 
 (3)        Lender reserves the right to require Borrower to deposit the Imposition Deposits with Lender on each Payment Date for Insurance Impositions in accordance
with this Section 12.02 (Imposition Deposits, Taxes, and Other Charges – Covenants) upon: 
 (A)        Borrower’s failure to pay Insurance Impositions or to provide Lender with proof of payment of Insurance Impositions as required in this
Section 12.02(b) (Conditional Waiver of Collection of Imposition Deposits); 
 (B)        Borrower’s failure to maintain insurance coverage in accordance with the requirements of Article 9 (Insurance); 

(C)        the occurrence of any Transfer which
is not permitted by the Loan Documents, or any Transfer which requires Lender’s consent; or 
 (D)        the occurrence of a default under any of the other terms, conditions and covenants set forth in this Loan Agreement or any of the other Loan Documents.

 (4)        Except as specifically
provided in this Section 12.02(b) (Conditional Waiver of Collection of Imposition Deposits), the provisions of Article 9 (Insurance) shall remain in full force and effect. 

 
 [BORROWER’S INITIALS FOLLOW ON NEXT PAGE] 

  

					
	 Modifications to Multifamily Loan and
	  	
	 Security Agreement (Waiver of Imposition
	  		  	
	 Deposits)
	  	Form 6228	  	Page 2
	 Fannie Mae
	  		  	© 2011 Fannie Mae

(Alta Crescent Apartments) 

 [CONTINUED FROM PREVIOUS PAGE] 

 

	
	 

	Borrower Initials

  

					
	 Modifications to Multifamily Loan and
	  	
	 Security Agreement (Waiver of Imposition
	  		  	
	 Deposits)
	  	Form 6228	  	Page 3
	 Fannie Mae
	  		  	© 2011 Fannie Mae

(Alta Crescent Apartments)

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