Document:

Exhibit 10.9

 

AMENDMENT TO

PURCHASE AND SALE AGREEMENT

 

THIS AMENDMENT TO
PURCHASE AND SALE AGREEMENT (“Amendment”) dated the 14th day of January, 2014, is entered into by and among
WAKE FOREST APARTMENTS, LLC, a North Carolina limited liability company (“Company”), WOODFIELD INVESTMENT COMPANY,
LLC (“Manager”), and the members listed on Schedule 1, attached hereto (individually “Member”
and collectively “Members”) (Manager and the Members are referred to herein individually as a “Seller”
and collectively as the “Sellers”), and TRADE STREET OPERATING PARTNERSHIP, L.P. (“Buyer”).

 

WITNESSETH:

 

WHEREAS, Company and
Buyer entered into that certain Purchase and Sale Agreement having an Effective Date of October 29, 2012 (“Agreement”);
and

 

WHEREAS, Company owns
all of the Property; and

 

WHEREAS, the parties
desire to amend certain terms and provisions of the Agreement as hereinafter set forth.

 

NOW, THEREFORE, in
consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt, adequacy and sufficiency of which
are hereby acknowledged, the parties intending to be legally bound, hereby agree as follows:

 

1.          The
recitations heretofore set forth are true and correct and are incorporated herein by this reference.

 

2.          The
Agreement as amended by this Amendment is hereby ratified and restated and remains in full force and effect. To the extent of
any inconsistency between the terms of this Amendment and the terms of the Agreement, the terms of this Amendment shall supersede
and control to the extent of such inconsistency. Terms not otherwise defined herein shall have the meaning set forth in the Agreement.

 

3.          Section
2.3 of the Agreement is hereby amended to provide that the Management Agreement with the Management Company shall be terminated
on the Closing Date and at Closing, Manager shall resign as the manager of the Company and a replacement manager shall be appointed
by Buyer.

 

4.          Notwithstanding
any provision of Section 2.2.5 of the Agreement to the contrary, upon the Company’s completion of the Project (subject to
any Punch List items as described below), the Company shall provide Buyer with a written certification that the Project has been
completed (“Completion Notice”), together with true and correct copies of the following “Completion Documents”
(i) all Final Certificates of Occupancy for the entire Project, and (ii) the certificate of the Project Architect or the AIA Document
G-704 Certificate of Substantial Completion (or factual equivalent from the Project Architect) as provided in Section 2.2.5 of
the Agreement. After delivery of the Completion Notice and Completion Documents, the Buyer shall have the right to perform the
Final Inspection as provided in Section 2.2.5 of the Agreement. There are no Change Requests under the Agreement other than as
set forth in Schedule 2. Manager, on behalf of the Company and the Sellers, shall complete the work on the
Punch List (if any) as required under the Agreement on or before the Closing.

 

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5.           Assignment
of Interests.

 

(a)          Instead
of Buyer acquiring the Property, at Closing, each Member and Manager shall collectively assign to the Buyer one hundred percent
(100%) of the management and ownership interests in the Company (collectively, “Interests”), free and clear of all
liens, claims and encumbrances. At Closing (i) the Sellers shall execute and deliver to Buyer the Assignment and Assumption Agreement
in the form attached hereto as Schedule 3 (the “Assignment and Assumption”), whereby the Interests
are assigned to Buyer, free and clear of all liens, claims and encumbrances, (ii) Buyer (or its designee) shall become a “Substituted
Member” (as defined in the Constituent Documents) and the sole member of the Company, all managers and officers of the Company
shall resign and Buyer’s designees shall be appointed as managers and officers of the Company, and (iii) the Company shall
continue to own the Property, subject only to the Permitted Exceptions. Manager shall execute and deliver to Buyer at Closing
(i) a FIRPTA Affidavit, (ii) the Assignment and Assumption, (iii) as to the Member Entities, certificates of good standing and
resolutions authorizing this transaction, (iv) the “Non-Imputation Documents” (as hereinafter defined), a “Closing
Affidavit” in form required by the Title Company to delete the gap, party(ies) in possession (other than the Leases) and
mechanics’ lien exceptions in the Title Commitment, (v) the documents set forth in Sections 5.4.4 through and including
5.4.12 of the Agreement and (vi) a closing statement (the “Closing Statement”) reflecting the allocation of the Purchase
Price among the Sellers and other prorations and credits as contemplated in the Agreement or this Amendment. The Manager shall
be responsible for performing all post closing repair obligations of the Company (previously the obligation of the Company) but
at the expense of the Sellers. The parties acknowledge and agree that the documents set forth in Sections 5.4.1 through and including
5.4.3 of the Agreement shall be inapplicable to the Closing as contemplated by this Amendment and the Sellers shall have no obligation
to deliver such documents.

 

(b)          At
Closing, Buyer shall execute and deliver (i) the items set forth in Sections 5.5.1 and 5.5.3 through and including 5.5.5 of the
Agreement and (ii) the Closing Statement. The parties acknowledge and agree that the document set forth in Section 5.5.2 of the
Agreement shall be inapplicable to the Closing as contemplated by this Amendment and Buyer shall have no obligation to deliver
such documents.

 

(c)          On
the Closing Statement, the amounts payable to the Sellers shall be adjusted to provide an appropriate credit against (or increase
to, as applicable) the Purchase Price for all prorations and adjustments under the Agreement, including the $1,000 Rent Ready
credit for each unit which is not Rent Ready. The Sellers agree that a portion of the Purchase Price in the amount of [$250,000]
(the “Sellers’ Holdback”) shall be disbursed to and held by Manager after Closing for the purpose of satisfying
any post-Closing obligations or liabilities of the Sellers. Upon any post-Closing obligation or liability of the Sellers becoming
due and payable, Manager shall disburse the applicable portion of the Sellers’ Holdback as necessary to satisfy such obligation
or liability. Upon the first (1st) anniversary of the Closing Date, Manager shall disburse the remaining balance of the Seller’s
Holdback, if any, to the Sellers on a pro rata basis in accordance with their respective shares of the Purchase Price as
set forth in the Closing Statement. The provisions of this Section 5(c) shall survive Closing.

 

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(d)          On
or before the Closing, Manager on behalf of the Sellers shall provide to Buyer up-to-date (i.e., within the thirty (30)
day period prior to Closing) (i) UCC, judgment and tax lien searches for each Seller and the Company in the appropriate jurisdiction(s)
for each such Seller and the Company reflecting that there are no liens or encumbrances affecting the Interests or any personal
property owned by the Company (other than the lien of the Company’s construction financing that will satisfied at Closing)
and (ii) judgment and litigation searches for the Company reflecting that there is no pending judgment lien or litigation affecting
the Company or the Property. To the extent that such searches reflect any lien encumbering a Seller’s Interest, or the Property
such Seller (as to itself) and the Manager, (as to the Property) shall either satisfy any such obligation or provide evidence
reasonably acceptable to Buyer that any lien is not applicable to such Seller’s Interest or the Property, as applicable.

 

(e)          At
Closing, the Company shall pay and have completely performed in full all obligations required to be paid or performed by the Company
under the Total Contracts (as defined below), except the Company shall remain obligated to pay for goods or services provided
under those contracts set forth on Schedule 7 (“Specified Contracts”) only to the extent such
goods or services are provided to the Company from and after Closing.

 

6.          Immediately
prior to Closing, all of cash on hand for the Company shall be distributed to the Sellers in accordance with the terms of the
applicable Constituent Documents (as defined in Section 10(l) herein) and Schedule 4 attached hereto, and such disbursement
of funds shall not in any way whatsoever give rise to a credit against the Purchase Price or any other form of compensation or
consideration benefitting Buyer, except Buyer shall be entitled to the prorations and adjustments set forth in the Agreement.

 

7.          All
proceeds delivered to the Sellers at or in connection with Closing pursuant to the terms of the Agreement shall be shared among
the Sellers in the same proportions and manner as set forth in the Constituent Documents if the Company sold the Property and
each of said Sellers would have shared in said proceeds if the form of the transaction had remained a sale of the Property by
the Company, rather than a sale and assignment of the Interests, and if said proceeds had been distributed immediately by the
Company to all of its Members in the manner prescribed in the Constituent Documents of the Company.

 

8.          The
term “Member Entity” shall mean singularly, and the term “Member Entities” shall mean collectively, all
entities that comprise the Members of the Company, including Manager, but excluding any entity that is an IRA custodian or IRA
trustee for the benefit of an individual.

 

9.          The
term “Individual Members” shall mean all individuals that comprise the Members of the Company. The term “Individual
Member” shall mean such individuals singularly.

 

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10.        Manager’s
Representations and Warranties. Manager hereby represents, warrants and covenants unto Buyer as of the date hereof and as
of Closing and agrees with Buyer as follows, to wit:

 

(a)          Ability
to Perform. Each of the covenants, representations and warranties of the Company in the Agreement are and, at Closing, shall
be true and correct.

 

(b)          Taxes.
The Company has paid or will pay prior to Closing all federal, state and municipal income, sales, use, occupational, property
and other taxes, assessments, fees, and charges levied upon its assets and income or otherwise relating or attributable to the
Property and/or the assets of or business conducted by the Company as of the Closing Date (as applicable); provided, however,
for the avoidance of doubt, that this sentence shall not apply to (i) any taxes or assessments that are subject to proration in
accordance with the Agreement or (ii) any taxable gain or income of the Company that is allocated to the Members in accordance
with applicable law. The Company has paid all sales and similar taxes with respect to the Property and all rentals paid with respect
thereto. The Company has not received any written notice from any applicable governmental authority of any pending or threatened
special assessments pertaining to the Property, the Interests or the Company. The Company is not delinquent in the payment of
any tax, estimated tax, assessment or governmental charge. There are no tax liens affecting Manager’s Interest, the Property
or assets of the Company, except liens for non-delinquent property taxes on the Property (being prorated at Closing). At Closing,
all taxes and assessments on the Property and prior years will be paid to the extent due to enable the Title Company to only take
exception for taxes for the year of Closing and subsequent years with respect to the Property. Manager shall cause the Company
to file a short-year tax return for the Company that includes the period from its formation date through the Closing Date, and
the Sellers shall be solely responsible for payment of any and all taxes due to any governmental agency related to the filing
of such short-year tax return. In the event that after the Closing Date a deficiency is determined in the amount of any federal,
state or local tax payable by the Company that would affect the Company or the Buyer or its assigns (directly or indirectly) and
which deficiency relates to any period ending prior to the Closing Date, then, in that event, the Sellers shall be fully responsible
for the payment of said deficiency and agree to indemnify the Buyer and/or its assigns related thereto.

 

(c)          Litigation.
There is no litigation, action, or proceeding pending or, to Manager’s knowledge, threatened relating to the Company, the
Property, or the transactions contemplated by the Agreement, including, but not limited to, those alleging the violation of any
laws, ordinances, orders or regulations of governmental or quasi-governmental authorities.

 

(d)          Employees.
From the date of each Company’s formation, the Company has not ever had any employees or pension, profit sharing or other
benefit plans.

 

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(e)          Financial
Statements. The balance sheets, income statements, tax statements and other financial information pertaining to the Company
attached hereto as Schedule 5 or which may be supplied by Manager to Buyer (“Financial Records”) are
in accordance with the books and records of the Company, used in its day-to-day operations for the periods therein specified and
same fairly presents in all material respects, the financial condition of the Company. Specifically, but not by way of limitation,
the balance sheets comprising the Financial Records disclose all of the debts, liabilities and obligations of any nature (whether
absolute, accrued, contingent or otherwise, and whether due or to become due) of the Company at the applicable balance sheet date
and have been prepared consistently. Notwithstanding anything to the contrary in this Section, the parties acknowledge that the
Financial Records of the Company may not be complete for the period of operation of the Company through the Closing Date. Manager
shall cause the Company to update such Financial Records through the Closing to reflect any material changes in such Financial
Records from the date of such Financial Records through the Closing Date. As of Closing, there shall be no loans or obligations
owed by the Company to any person, firm or entity, other than the Specified Liabilities.

 

(f)          Present
Status. Since the dates of the most recent balance sheets comprising the Financial Records, the Company has not:

 

(i)          Except
for the Specified Liabilities, incurred any obligations or liabilities, absolute, accrued, contingent or otherwise except to the
extent same shall be paid in full or prorated as part of Closing;

 

(ii)         Sold
or transferred any assets, except in the ordinary course of business;

 

(iii)        Suffered
any damage, destruction or loss (whether or not covered by insurance) materially affecting its properties, business or prospects;

 

(iv)        Waived
or modified any contractual rights of substantial value;

 

(v)         Entered
into any transaction other than in the ordinary course of business; or

 

(vi)        Experienced
any event or condition (financial or otherwise) which does have, or reasonably might have, a material adverse affect on its assets,
condition or business prospects.

 

(g)          Specified
Liabilities. Immediately following the completion of the Closing, the Company shall not have any liabilities or obligations
other than the Leases, Specified Contracts, Permitted Exceptions (collectively “Specified Liabilities”). The Company
has paid and shall pay in full on or before Closing all hard and soft costs in connection with development and construction of
the Project. The Company and Manager hereby (i) terminate all agreements between Company and Manager effective as of Closing,
and (ii) agree that all obligations of the Company to Manager, including, but not limited to, any obligations under any agreements
between the Company and Manager, including, but not limited to, any indemnities, shall be deemed satisfied or waived by Manager
as of Closing.

 

(h)          FIRPTA.
Manager is a “United States person” within the meaning of the Internal Revenue Code of 1986, as amended.

 

(i)        
  Free and Clear. Manager’s Interest in and rights as manager of the Company as of the Closing Date shall
be free and clear of all liens and encumbrances.

 

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(j)    
      No Warrants. The Company has not issued any outstanding options, warrants or other
rights to purchase any interest in the Company or the Property. The Company has not issued or authorized any outstanding purchase
rights, subscription rights, conversion rights, exchange rights or other contracts or commitments that could require the Company
to issue, sell or otherwise cause to become outstanding any additional interests in the Company.

 

(k)          Interest.
The Interests of the Members, collectively, to be assigned by the Members to Buyer comprise all of the issued and outstanding
legal and beneficial Interests in the Company. The percentage of each Interest owned by each Member in the Company is set forth
on Schedule 1. The Members set forth on Schedule 1 comprise all “Investor Members” (as
defined in the Constituent Documents) of the Company. Manager owns its Interest in the Company free and clear of all liens, claims,
and encumbrances. All of such Interests have been duly authorized, are validly issued, fully paid and nonassessable, and are not
subject to preemptive rights, rights of first refusal or any other right or interest of any third party created by statute or
any agreement to which the Company or Manager is a party or by which either the Company or Manager is bound or subject. Neither
the Company nor Manager has issued or granted any interests, options, interest appreciation rights, performance units or similar
rights related to Company. All necessary consents, approvals and requirements to transfer Manager’s Interest to Buyer, free
of liens, claims and encumbrances, including, but not limited to, requirements under the Constituent Documents, have been obtained
as of the date hereof. There are no contracts, commitments or agreements relating to voting, purchase or sale of all or any portion
of Manager’s Interest, or any or rights to distributions with respect thereto, except as set forth in the Constituent Documents.

 

(l)        
  Constituent Documents. True and correct copies of the Company’s operating agreement and all amendments,
assignments and supplements thereto (the “Constituent Documents”) are set forth on Schedule 4. Such
Constituent Documents shall not be amended prior to Closing without Buyer’s written approval. Schedule 1 sets
forth the name of each Member and such Member’s percentage Interest in the Company.

 

(m)    
    Tax Returns. The Company shall file or cause to be filed all applicable federal, state and local
tax returns applicable to the Company required to be filed before Closing and has paid all taxes due with respect to the Company
with respect to the periods covered by such returns for the period prior to Closing. Neither the Internal Revenue Service nor
any other taxing authority is now asserting or to the knowledge of Manager threatening to assert against any of the Sellers any
deficiency or claim for additional taxes or interest thereon or penalties in connection therewith relating to income or gain allocated
to them by the Company. After Closing, Manager agrees to cause all tax returns and reports that are required to be prepared and
filed for the period of operations of the Company prior to the Closing Date, including but not limited to the short tax year for
the year of Closing and any taxes due related thereto as otherwise set forth herein, to be timely prepared and filed, at the Sellers’
expense. The Sellers shall satisfy all amounts falling due prior to the Closing Date with respect thereto.

 

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(n)          Sales
Tax. At Closing, all sales tax returns to the extent such returns are due prior to Closing with respect to the Property owned
by the Company will have been filed. Any outstanding obligation for sales tax on rents which have been paid shall be prorated
with the Sellers responsible for such sales taxes in connection with the Property at or prior to Closing and the Company shall
be responsible for such sales taxes in connection with the Property subsequent to Closing. Notwithstanding the previous sentence,
to the extent the Company has collected sales tax on rent payments made prior to the Closing, the amount of all such sales taxes
that were collected (or should have been so collected) shall be retained by the Company and not disbursed to Members (to the extent
not previously paid to the North Carolina Department of Revenue) at the Closing to be used to satisfy the obligation to collect
and remit such sales taxes to the North Carolina Department of Revenue. All transfer taxes and withholdings with respect to this
transaction shall be paid by the Sellers at Closing.

 

(o)    
     The Company has been and is in compliance in all material respects with the loan documents for the Company’s
construction loan that is secured by the Property.

 

(p)          Recycled
Entities. The Company:

 

(i)          has
not entered into any contract or agreement with any of its “Affiliates”, constituents, or owners, or any guarantors
of any of its obligations or any Affiliate of any of the foregoing (individually, a “Related Affiliate Party,” and
collectively, the “Related Affiliate Parties”), except upon terms and conditions that are commercially reasonable
and substantially similar to those available in an arm’s-length transaction with an unrelated party. “Affiliate”
of any person, firm or entity (“Person”) means (i) any other Person which, directly or indirectly, is in Control of,
is under the Control of, or is under common Control with, such Person; (ii) any other Person who is a director or officer of (A)
such Person, (B) any subsidiary of such Person, or (C) any Person described in clause (i) of this definition; or (iii) any corporation,
limited liability company or partnership which has as a director any Person described in Section (ii) of this definition;

 

(ii)         has
done or caused to be done all things necessary to observe all organizational formalities applicable to it and to preserve its
existence;

 

(iii)        has
maintained all of its books, records, financial statements and bank accounts separate from those of any other Person;

 

(iv)        has
not had its assets listed as assets on the financial statement of any other Person;

 

(v)         has
filed its own tax returns (except to the extent that it has been a tax disregarded entity not required to file tax returns under
applicable law) and, if it is a corporation, has not filed a consolidated federal income tax return with any other Person;

 

(vi)        has
been, and at all times has held itself out to the public as, a legal entity separate and distinct from any other Person (including
any Affiliate or other Related Affiliate Party);

 

(vii)       has
conducted all of its business and held all of its assets in its own name;

 

(viii)      has
not commingled its assets with those of any other Person and has held all of its assets in its own name;

 

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(ix)         has
not guaranteed or become obligated for the debts of any other Person;

 

(x)          has
not held itself out as being responsible for the debts or obligations of any other Person; has allocated fairly and reasonably
any overhead expenses that have been shared with an Affiliate, including paying for office space and services performed by any
employee of an Affiliate or Related Affiliate Party;

 

(xi)         has
not pledged its assets to secure the obligations of any other Person and no such pledge remains outstanding; and

 

(xii)        has
not had any of its obligations guaranteed by an Affiliate or other Related Affiliate Party, except for guarantees that have been
either released or discharged (or that will be discharged as a result of the Closing).

 

The Company is a “Single
Purpose Entity” which is a limited liability company which, at all times since its formation and thereafter:

 

(i)          The
Company does not own and has not owned, either directly or indirectly, any asset or property other than (1) the Property, and
(2) incidental personal property necessary for the ownership or operation of the Property;

 

(ii)         The
Company has not engaged in and will not engage in any business other than the ownership, management and operation of the Property
(with respect to Company), and the Company will conduct and operate its business as presently conducted and operated;

 

(iii)        The
Company has not entered and will not enter into any contract or agreement with any affiliate of the Company, any Member of Company
or any affiliate of any Member, except upon terms and conditions that are intrinsically fair, commercially reasonable and substantially
similar to those that would be available on an arms-length basis with unaffiliated third parties;

 

(iv)        The
Company has not incurred and will not incur any indebtedness, secured or unsecured, direct or indirect, absolute or contingent
(including guaranteeing any obligation), other than (1) trade and operational debt incurred in the ordinary course of business
with trade creditors in amounts as are normal and reasonable under the circumstances provided that such debt is paid by Closing,
and (2) except for debt which is being paid in full on or before Closing. At Closing, there shall be no secured debt (subordinate
or pari passu) encumbering the Property, nor any liabilities other than the Specified Liabilities;

 

(v)         The
Company has not made and will not make any loans or advances to any third party (including any affiliate, constituent party or
any affiliate of any constituent party), and has not and will not acquire obligations or securities of its affiliates or any constituent
party.

 

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(vi)        The
Company has been, are and will remain solvent and the Company has and will pay its own debts and liabilities from its assets,
as the same shall become due.

 

(vii)       The
Company has done or caused to be done and will do or cause to be done all things necessary to observe organizational formalities
and preserve its existence, and the Company has not and will not, prior to Closing, nor has the Company permitted nor will Company
permit any of its Members or Manager, to amend, modify or otherwise change the partnership certificate, partnership agreement,
articles of incorporation, bylaws, articles of organization, operating agreement, trust agreement or other organizational document
of Company in a manner which would result in a breach of any of the representations, warranties or covenants set forth in this
Amendment or in a manner that would otherwise adversely affect the Company’s single purpose status.

 

(viii)      The
Company has and will maintain all of its books, records, financial statements and bank accounts separate from those of its affiliates,
any Member and any other person; provided, however, Company may include its financial statements as part of a consolidated financial
statement if (i) such statements contain a notation that makes clear that Company is a separate entity and that the assets and
credit of the Company are not available to satisfy liabilities of any other person and that the assets and credit of such other
person are not available to satisfy liabilities of the Company, the Company has and will file its own tax returns as required
by applicable state and federal law; the Company has maintained and shall maintain its books, records, resolutions and agreements
as official records.

 

(ix)         The
Company has been and will be, and at all times has and will hold itself out to the public as, a legal entity separate and distinct
from any other entity (including any affiliate of the Company or any Member, or any affiliate of any Member), has corrected and
will correct any known misunderstanding regarding its status as a separate entity, has conducted and will conduct business in
its own name, has not identified and shall not identify itself or any of its affiliates as a division or part of the other and
has maintained and shall maintain and utilize separate stationery, invoices and checks.

 

(x)          The
Company has not assumed or guaranteed and will not assume or guaranty the debts of any other person, has not held and will not
hold itself out to be responsible for the debts of any other person, and has not and will not otherwise pledge its assets for
the benefit of any other person or hold out its credit as being available to satisfy the obligations of any other person.

 

(xi)         The
Company has maintained and will maintain adequate capital for the normal obligations reasonably foreseeable in a business of its
size and character and in light of its contemplated business operations.

 

(xii)        Neither
the Company, Manager, nor any of their respective Members has caused or will cause or permit the dissolution, winding up, liquidation,
consolidation or merger in whole or in part, of the Company; and neither Company nor any of its respective Members has disposed
or will dispose of all or substantially all of the assets of Company and has not changed and will not change Company legal structure.

 

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(xiii)       The
Company has not commingled and will not commingle the funds and other assets of Company with those of any affiliate or Member
or any other person.

 

(xiv)      The
Company has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain
or identify its individual assets from those of any affiliate or constituent party, or any other person.

 

(xv)       The
Company does not and will not hold itself out to be responsible for the debts or obligations of any other person.

 

(xvi)      The
Company does and shall continue to (i) allocate fairly and reasonably any overhead and expense for office space shared with any
affiliated person, (ii) pay any liabilities, including salaries of its employees, out of its own funds and not from funds of any
affiliated person and/or (iii) maintain a sufficient number of employees (which may be zero) in light of its contemplated business
operations.

 

(xvii)     The
Company shall not institute proceedings to be adjudicated bankrupt or insolvent, or consent to the institution of such proceedings
against it, or file a petition seeking, or consent to, reorganization or relief, under any chapter of the Bankruptcy Code (Title
11 of the United States Code), as amended, or any other bankruptcy or similar laws, or consent to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator or similar official of it or of a substantial part of its assets or property, or make
an assignment for the benefit of creditors, or admit in writing its inability to pay its debts generally as they become due, or
take any action in furtherance of any of the foregoing. Without
limiting the foregoing and notwithstanding any other provision of the Agreement or of any of the organizational documents of Company
or any provision of law that otherwise so empowers the Company, the Company shall not be authorized or empowered to, nor shall
the Company institute proceedings to have the Company adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy
or insolvency proceedings against the Company or file a voluntary petition seeking, or consent to, reorganization or relief with
respect to the Company under any applicable federal or state law relating to bankruptcy, or seek or consent to the appointment
of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or a substantial part of
its property, or make any assignment for the benefit of creditors of the Company, or admit in writing the Company’s inability
to pay its debts generally as they become due, or to the fullest extent permitted by law, to take any action in furtherance of
any such action. The Company shall not be authorized or empowered, nor shall the Company consolidate, merge, dissolve, liquidate
or sell all or substantially all of the Company’s assets.

 

(q)          At
Closing, the Company shall own the Property free and clear of all liens and encumbrances, subject only to the Permitted Exceptions.

 

(r)          There
has been no dissolution of the Company.

 

(s)          As
of Closing, no buy-sell has been exercised under the Constituent Documents.

 

(t)          All
outstanding debts and operating expenses of the Company shall be paid in full as of the Closing, except to the extent that any
such items shall be prorated or otherwise shall be the Company’s or the Buyer’s responsibility after Closing in accordance
with the express terms of the Agreement, as amended hereby.

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(u)          Schedule
6 attached hereto and made a part hereof is a true and correct schedule of all contracts to which the Company is a party
(“Total Contracts”). The term “Specified Contracts” is amended to include the contracts set forth on Schedule
7. At Closing and subject to the provisions of the Agreement relating to proration of expenses, the Company shall pay
and have completely performed in full all obligations required to be paid or performed by the Company under the Total Contracts,
except the Company shall remain obligated to pay for services provided under the Specified Contracts for services first provided
to the Company from and after Closing. The Company is and at Closing shall be current and in good standing in all material respects
under all of the Total Contracts.

 

(v)         All
loans, fees and expenses of the Company shall be paid in full at Closing except for the Specified Liabilities and items which
will be prorated and paid in accordance with the terms of the Agreement.

 

Section 7.3 of the
Agreement shall apply to the representations and warranties made in this Section 10 and the representations and warranties made
pursuant to this Section 10 shall survive for the statute of limitations period; however, all representations and warranties referred
to in Section 7.3 of the Agreement shall survive only to the extent provided for in Section 7.3 of the Agreement.

 

11.         Manager’s
Indemnity; Joint Liability.

 

(a)          Manager
hereby agrees to indemnify and hold Buyer harmless for all loss, costs, or expense, including reasonable attorneys’ fees
through all trial and appellate levels for any breach of representations or warranties in Section 10 of this Amendment. The provisions
of this Section shall survive Closing for the statute of limitations period.

 

(b)          Manager
shall be jointly and severally liable for all representations, warranties, covenants and obligations of the Sellers under this
Amendment except for (i) the representations of the Member Entities (other than Manager) under Section 12 hereof; (ii) the indemnification
obligations of the Member Entities (other than Manager) under Section 13 hereof; (iii) the representations of the Individual Members
under Section 14 hereof; and (iv) the indemnification obligations of the Individual Members under Section 15 hereof.

 

12.         Member
Entities’ Representations and Warranties. Notwithstanding anything to the contrary contained in this Agreement, each
of the Member Entities (including Manager in its capacity as a Member Entity), individually and severally, hereby represents,
warrants and covenants, on behalf of itself only and with respect only to its respective share of and interest in the Interests,
and not jointly with any other Sellers, unto Buyer and agrees with Buyer as follows, to wit:

 

(a)          Ability
to Perform. Such Member Entity has the full power and authority to execute, deliver and carry out the terms and provisions
of this Amendment applicable to it. No order, permission, consent, approval, license, authorization, registration or validation
of, or filing with, or exemption by, any governmental agency, commission, board or public authority is required to authorize,
or is required in connection with, the execution, delivery and performance of this Amendment by such Member Entity performing
its obligations under this Amendment including, but not limited to, transferring such Member Entity’s Interest to Buyer
(or its designees).

 

    	11

    	 

    

 

(b)          Taxes.
Such Member Entity has paid or will pay prior to Closing all federal, state and municipal income, sales, use, occupational, property
and other taxes, assessments, fees, and charges levied upon its assets and income or otherwise relating or attributable to the
assets of or business conducted by it and that are due as of the Closing Date (as applicable); provided, however, for the avoidance
of doubt, that this sentence shall not apply to any taxes or assessments that are subject to proration in accordance with the
Agreement. Such Member Entity has not received any written notice from any applicable governmental authority of any pending or
threatened special assessments pertaining to such Member Entity’s Interest. Such Member Entity is not delinquent in the
payment of any tax, estimated tax, assessment or governmental charge. There are no tax liens affecting the Interest of such Member
Entity. In the event that after the Closing Date a deficiency is determined in the amount of any federal, state or local tax payable
by such Member Entity that would affect Buyer or its assigns (directly or indirectly) and which deficiency relates to periods
ending prior to the Closing Date, then, in that event, such Member Entity shall be fully responsible for the payment of said deficiency
and agrees to indemnify the Buyer and/or its assigns related thereto as set forth in Section 13 hereof.

 

(c)          Duly
Organized. Such Member Entity is duly organized and validly existing and is in good standing in the state of its formation.
Such Member Entity has full power and authority to enter into this Amendment and to perform its respective obligations hereunder.

 

(d)          Litigation.
There is no litigation, action, or proceeding pending or, to such Member Entity’s knowledge, threatened relating to such
Member Entity or such Member Entity’s Interest, including, but not limited to, those alleging the violation of any laws,
ordinances, orders or regulations of governmental or quasi-governmental authorities.

 

(e)          FIRPTA.
Such Member Entity is a “United States person” within the meaning of the Internal Revenue Code of 1986, as amended.

 

(f)     
     Free and Clear. The Interest of such Member Entity as of the Closing Date is in the
percentage set forth on Schedule 1 and such Interest shall be transferred to Buyer free and clear of all liens
and encumbrances.

 

(g)          No
Warrants. Except as set forth in the Constituent Documents for the Company, such Member Entity has not issued or been issued
any outstanding options, warrants or other rights to purchase the Interest held by such Member Entity, and such Member Entity
has not issued or authorized or been issued any purchase rights, subscription rights, conversion rights, exchange rights or other
contracts or commitments that could require such Member Entity to transfer, sell or otherwise cause any third party to hold its
respective Interest.

 

    	12

    	 

    

 

(h)          Interest.
The Interest of such Member Entity as shown on Schedule 1 comprises all of the legal and beneficial Interest
of such Member Entity in the Company. Such Member Entity owns such issued and outstanding legal and beneficial Interest free and
clear of all liens, claims, and encumbrances. To such Member Entity’s knowledge, its Interest has been duly authorized,
is validly issued, fully paid and nonassessable, free and clear of any liens and encumbrances of any kind, and is not subject
to preemptive rights, rights of first refusal or any other right or interest of any third party created by statute or any agreement
to which such Member Entity is a party or by which it is bound or subject. Such Member Entity has not issued or granted any interests,
options, interest appreciation rights, performance units or similar rights related to its Interest. All necessary consents, approvals
and requirements of such Member Entity to transfer the Interest to Buyer, free of liens, claims and encumbrances, including, but
not limited to, the requirements of the Constituent Documents have been obtained as of the date hereof. There are no contracts,
commitments or agreements relating to voting, purchase or sale of such Member Entity’s Interest, or any rights to distributions
with respect thereto, except as set forth in the Constituent Documents for the Company.

 

(i)      
    Tax Returns. Such Member Entity shall file or cause to be filed all applicable federal, state
and local tax returns applicable to it and required to be filed before Closing and has paid all taxes due with respect to
such Member Entity with respect to the periods covered by such returns for the period prior to Closing. Neither the Internal
Revenue Service nor any other taxing authority is now asserting or, to the knowledge of such Member Entity, threatening to
assert against it any deficiency or claim for additional taxes or interest thereon or penalties in connection therewith,
which additional taxes, interest or penalties, if any, such Member Entity shall promptly pay upon assessment, unless such
assessment is disputed in good faith. After Closing, such Member Entity agrees to cause all tax returns and reports that are
required to be prepared and each filed for the period of operations of such Member Entity prior to the Closing Date.

 

The representations
and warranties made pursuant to this Section 12 shall survive for the statute of limitations period.

 

13.         No
Joint Liability of Member Entities; Member Entities Indemnity. It is hereby understood, acknowledged and agreed by all parties
hereto that each Member Entity (including the Manager in its capacity as a Member Entity) shall be severally liable as to its
representations and obligations as one of the Member Entities as set forth in Section 12. Each Member Entity (including the Manager
in its capacity as a Member Entity) will indemnify and hold Buyer harmless for all loss, costs, or expense, including reasonable
attorneys’ fees through all trial and appellate levels for any breach of such Member Entity’s representations or warranties
in Section 12 of this Amendment. The provisions of this Section shall survive Closing for the statute of limitations period.

 

14.         Individual
Members Representations and Warranties. Notwithstanding anything to the contrary contained in this Agreement, each of the
Individual Members, individually and severally, hereby represents, warrants and covenants, on behalf of himself or herself only
and with respect only to his or her respective share of and interest in the Interests, and not jointly with any other Sellers
unto Buyer and agrees with Buyer as follows, to wit:

 

    	13

    	 

    

 

(a)          Ability
to Perform. Such Individual Member has the full power and authority to execute, deliver and carry out the terms and provisions
of this Amendment applicable to him or her. No order, permission, consent, approval, license, authorization, registration or validation
of, or filing with, or exemption by, any governmental agency, commission, board or public authority is required to authorize,
or is required in connection with, the execution, delivery and performance of this Amendment by such Individual Member performing
his or her obligations under this Amendment including, but not limited to, transferring such Individual Member’s Interest
to Buyer (or its designees).

 

(b)          Taxes.
Such Individual Member has paid or will pay prior to Closing all federal, state and municipal income, sales, use, occupational,
property and other taxes, assessments, fees, and charges levied upon its assets and income or otherwise relating or attributable
to the assets of or business conducted by him or her and that are due as of the Closing Date (as applicable); provided, however,
for the avoidance of doubt, that this sentence shall not apply to any taxes or assessments that are subject to proration in accordance
with the Agreement. Such Individual Member has not received any written notice from any applicable governmental authority of any
pending or threatened special assessments pertaining to such Individual Member’s Interest. Such Individual Member is not
delinquent in the payment of any tax, estimated tax, assessment or governmental charge. There are no tax liens affecting the Interest
of such Individual Member. In the event that after the Closing Date a deficiency is determined in the amount of any federal, state
or local tax payable by such Individual Member that would affect Buyer or its assigns (directly or indirectly) and which deficiency
relates to periods ending prior to the Closing Date, then, in that event, such Individual Member shall be fully responsible for
the payment of said deficiency and agrees to indemnify the Buyer and/or its assigns related thereto as set forth in Section 14.

 

(c)          Litigation.
There is no litigation, action, or proceeding pending or, to such Individual Member’s knowledge, threatened relating to
such Individual Member or his or her Interest, including, but not limited to, those alleging the violation of any laws, ordinances,
orders or regulations of governmental or quasi-governmental authorities.

 

(d)          FIRPTA.
Such Individual Member is a “United States person” within the meaning of the Internal Revenue Code of 1986, as amended.

 

(e)          Free
and Clear. The Interest of such Individual Member as of the Closing Date is in the percentage set forth on Schedule 1
and such Interest shall be transferred to Buyer free and clear of all liens and encumbrances.

 

(f)     
     No Warrants. Except as set forth in the Constituent Documents for the Company, such
Individual Member has not issued or has been issued any outstanding options, warrants or other rights to purchase the
Interest held by such Individual member, and such Individual Member has not issued or authorized or has been issued any
purchase rights, subscription rights, conversion rights, exchange rights or other contracts or commitments that could require
such Individual Member to transfer, sell or otherwise cause any third party to hold his or her respective Interest.

 

    	14

    	 

    

 

(g)          Interest.
The Interest of such Individual Member as shown on Schedule 1 comprises all of the legal and beneficial Interest
of such Individual Member in the Company. Such Individual Member owns his or her issued and outstanding legal and beneficial Interest
in the Company free and clear of all liens, claims, and encumbrances. To such Individual Member’s knowledge, his or her
Interest has been duly authorized, is validly issued, fully paid and nonassessable, free and clear of any liens and encumbrances
of any kind, and is not subject to preemptive rights, rights of first refusal or any other right or interest of any third party
created by statute or any agreement to which such Individual Member is a party or by which he or she is bound or subject. Such
Individual Member has not issued or granted any interests, options, interest appreciation rights, performance units or similar
rights related to his or her Interest. All necessary consents, approvals and requirements to transfer the Interest of such Individual
Member to Buyer, free of liens, claims and encumbrances, including but not limited to, the requirements of the Constituent Documents,
have been obtained as of the date hereof. There are no contracts, commitments or agreements relating to voting, purchase or sale
of such Individual Member’s Interest, or any rights to distributions with respect thereto, except as set forth in the Constituent
Documents for the Company.

 

(h)          
Tax Returns. Such Individual Member shall file or cause to be filed all applicable federal, state and local tax returns
applicable to him or her and required to be filed before Closing and has paid all taxes due with respect to such Individual Member
with respect to the periods covered by such returns for the period prior to Closing. Neither the Internal Revenue Service nor
any other taxing authority is now asserting or, to the knowledge of such Individual Member, threatening to assert against him
or her any deficiency or claim for additional taxes or interest thereon or penalties in connection therewith, which additional
taxes, interest or penalties, if any, such Individual Member shall promptly pay upon assessment, unless such assessment is disputed
in good faith, whereupon such Individual Member shall pay same (which may be paid under protest). After Closing, such Individual
Member agrees to cause all tax returns and reports that are required to be prepared and each filed for the period prior to the
Closing Date.

 

The representations
and warranties made in this Section 14 and the representations and warranties made pursuant to this Section 14 shall survive for
the statute of limitations period.

 

15.        No
Joint Liability of Individual Members; Individual Members Indemnity. It is hereby understood, acknowledged and agreed by all
parties hereto that each Individual Member shall be severally liable for its representations, warranties and obligations set forth
in Section 14. Each Individual Member will indemnify and hold Buyer harmless for all loss, costs, or expense, including reasonable
attorneys’ fees through all trial and appellate levels for any breach of such Individual Member’s representations
or warranties in Section 14 of this Amendment. The provisions of this Section shall survive Closing for the statute of limitations
period.

 

16.        Conversion.
On or before Closing, the Sellers shall cause the Company to be converted to a Delaware limited liability company in accordance
with applicable law based on documents prepared by Seller reasonably approved by Buyer.

 

17.        Non-Imputation.
At Closing, Manager shall execute and deliver an affidavit in the form of Schedule 8 attached hereto and made a
part hereof and such other reasonable documentation required by the Title Company to issue a non-imputation endorsement to the
Title Policy to be issued to Buyer at Closing (“Non-Imputation Documents”).

 

    	15

    	 

    

  

18.        Breach.
Notwithstanding any provisions of Sections 10 through 15, inclusive, to the contrary, a breach by any of the Sellers of their
respective representations, warranties or covenants under this Agreement on or before Closing shall constitute a Seller default
under the Agreement entitling Buyer to the remedies for such default under the Agreement.

 

19.        Counterpart.
This Amendment may be executed in any number of counterparts, each of which, when executed, shall be deemed an original and all
of which shall be deemed one and the same instrument. Facsimile transmission signatures of this Amendment shall be deemed to be
original signatures.

 

20.        Advice.
Each party to this Amendment has been individually and separately advised and represented by such legal, tax and other advisors
as such party has desired, or has purposely chosen to forego such separate representations and advice.

 

[THIS SPACE INTENTIONALLY LEFT BLANK]

 

    	16

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this Amendment as of the day and year first above written.

   

	 	BUYER:  
	 	 
	 	 	TRADE STREET OPERATING
	 	 	PARTNERSHIP, LP, a Delaware limited
	 	 	partnership
	 	 	 	 	 	 
	 	 	By:	Trade Street OP GP, LLC, a Delaware
	 	 	 	limited liability company, its General
	 	 	 	Partner
	 	 	 	 	 	 
	 	 	 	By:	Trade Street Residential, Inc., a
	 	 	 	 	Maryland corporation, its Sole
	 	 	 	 	Member
	 	 	 	 	 	 
	 	 	 	 	By:	/s/ Richard Ross
	 	 	 	 	Name:	Richard Ross
	 	 	 	 	Title:	CFO
	 	 	 	 	Date:	January 14, 2014

 

	 	SELLERS:	 
	 	 	 
	 	 	WOODFIELD INVESTMENT COMPANY,
	 	 	LLC, as Manager
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	Date:	 

 

The signatures for the Members as Sellers are set forth either
above or below their respective names on Schedule 1 attached hereto.

 

The Company hereby joins this Amendment for the purposes of
consenting to the transaction described herein and the provisions hereof.

 

    	17

    	 

    

	 	WAKE FOREST APARTMENTS, LLC,
	 	a North Carolina limited liability company
	 	LLC, as Manager
	 	 
	 	By: Woodfield Investment Company, LLC, its Manager
	 	 	 	 
	 	 	By:	/s/ Michael A. Underwood
	 	 	Name:	Michael A. Underwood
	 	 	Title:	Manager
	 	 	Date:	January 14, 2014

 

    	18

    	 

    

 

SCHEDULE 1

 

 

	MEMBERS	 	PERCENTAGE INTEREST
	Woodfield Investment Company, LLC	 	55.000%
	 	 	 	 
	By:	/s/  Michael A. Underwood	 	 
	Name:	Michael A. Underwood	 	 
	Title:  	Manager	 	 
	Date:  	January 14, 2014	 	 
	 	 	 	 
	ARA Investment Partners III LLC	 	1.380%
	 	 	 	 
	By:	/s/  Blake Okland	 	 
	Name:	Blake Okland	 	 
	Title:	Principal	 	 
	Date: 	December 16, 2013	 	 
	 	 	 	 
	Atlantic Associates, Ltd.	 	4.140%
	 	 	 	 
	By:	/s/ Leon E. Teske	 	 
	Name:  	Leon E. Teske	 	 
	Title:	President	 	 
	Date:	December 16, 2013	 	 
	 	 	 	 
	 	 	 	 
	/s/ John Coleman	 	0.690%
	John Coleman	 	 
	Date:	December 17, 2013	 	 
	 	 	 	 
	Commercial Investment Group – Woodfield Creek, GP	 	7.658%
	 	 	 	 
	By:	/s/ Kevin M. Johnson	 	 
	Name:	Kevin M. Johnson	 	 
	Title:	President	 	 
	Date:	December 17, 2013	 	 
	 	 	 	 
	/s/ Robert P. Conlon	 	0.690%
	Robert P. Conlon	 	 
	Date:	January 10, 2014	 	 

 

    	19

    	 

    

 

	Connark Company, Ltd.	 	1.035%
	 	 	 	 
	By:	/s/ Leon E. Teske	 	 
	Name:	Leon E. Teske	 	 
	Title:	President	 	 
	Date:	December 16, 2013	 	 
	 	 	 	 
	 	 	 	 
	/s/ Kenneth A. Gill	 	1.380%
	Kenneth A. Gill	 	 
	Date:	December 19, 2013	 	 
	 	 	 	 
	 	 	 	 
	/s/ Robert K. Grunewald	 	1.725%
	Robert K. Grunewald	 	 
	Date:	January 6, 2014	 	 
	 	 	 	 
	 	 	 	 
	/s/ Robert A. Jones	 	1.380%
	Robert A. Jones	 	 
	Date:	December 15, 2013	 	 
	 	 	 	 
	 	 	 	 
	/s/ Jeff M. Kane	 	0.690%
	Jeff M> Kane	 	 
	Date:	December 31, 2013	 	 
	 	 	 	 
	Delaware Charter Guarantee & Trust F/B/O Alain LeCoque SEP IRA	 	0.690%
	 	 	 	 
	By:  	/s/ Rachel Heil, on behalf of Delaware Charter	 	 
	Name:	Rachel Heil, on behalf of Delaware Charter	 	 
	Title:	Retirement Plans Supervisor	 	 
	Date:	December 19, 2013	 	 

 

    	20

    	 

    

 

	PENSCO Trust Co. Custodian F/B/O Brian P. Schick IRA	 	1.483%
	 	 	 	 
	By:	/s/ Brian P. Schick, IRA Holder	 	 
	Name:	Brian P. Schick	 	 
	Title:	IRA Holder	 	 
	Date:	December 30, 2013	 	 
	 	 	 	 
	 	 	 	 
	/s/ Lori N. Ring	 	0.690%
	Lori N. Ring	 	 
	Date:	December 16, 2013	 	 
	 	 	 	 
	 	 	 	 
	/s/ Michael G. Smith	 	0.690%
	Michael G. Smith	 	 
	Date:	December 15, 2013	 	 
	 	 	 	 
	Stifel Nicholas C/F Paul Finnen SEP IRA	 	1.380%
	 	 	 	 
	By:	/s/ Paul Finnen	 	 
	Name:	Paul Finnen	 	 
	Title:	SEP IRA	 	 
	Date:	December 19, 2013	 	 
	 	 	 	 
	By:	/s/ William R. Greenwald	 	 
	Name:	William R. Greenwald	 	 
	Title:	Vice President	 	 
	Date:	December 18, 2013	 	 
	 	 	 	 
	Sunwest Trust Inc. Custodian for Scott Vuncannon IRA	 	0.690%
	 	 	 	 
	By:	/s/ Scott Vuncannon	 	 
	Name:	Scott Vuncannon	 	 
	Title:	IRA Owner	 	 
	Date:	December 17, 2013	 	 
	 	 	 	 
	By:	/s/ Cynthia Archulett	 	 
	Name:	Cynthia Archulett	 	 
	Title:	Executive Vice President	 	 
	Date:	December 30, 2013	 	 

 

    	21

    	 

    

 

	/s/ Kyle. W. Taylor	 	2.070%
	Kyle W. Taylor	 	 
	Date:	December 16, 2013	 	 
	 	 	 	 
	WCF Wake Forest LLC	 	10.349%
	 	 	 	 
	By:  	Theresa R. Gebhart	 	 
	Name:	Theresa R. Gebhart	 	 
	Title:	Co-Manager	 	 
	Date:	December 31, 2013	 	 
	 	 	 	 
	 	 	 	 
	/s/ William C. Whitley	 	0.690%
	William C. Whitley	 	 
	Date:	December 16, 2013	 	 
	 	 	 	 
	DKTTP Capital LLC	 	1.380%
	 	 	 	 
	By:	/s/ Todd Gordon	 	 
	Name:	Todd Gordon	 	 
	Title:	Managing Member	 	 
	Date:	December 19, 2013	 	 
	 	 	 	 
	 /s/ John Ford	 	0.690%
	John Ford	 	 
	Date:	December 15, 2013	 	 
	 	 	 	 
	 /s/ Margaret Ford	 	 
	Margaret Ford	 	 
	Date:	December 15, 2013	 	 
	 	 	 	 
	 /s/ Greg Bonifield	 	0.772%
	Greg Bonifield	 	 
	Date:	January 6, 2014	 	 
	 	 	 	 
	PENSCO Trust Co. F/B/O Todd Jacobus IRA	 	0.772%
	 	 	 	 
	By:	/s/ Todd Jacobus	 	 
	Name:	Todd Jacobus	 	 
	Title:	Member	 	 
	Date:	December 16, 2013	 	 
	 	 	 	 
	PENSCO Trust Co. F/B/O Michael Schwarz IRA	 	0.772%
	 	 	 	 
	By:	/s/ Michael Schwarz	 	 
	Name:	Michael Schwarz	 	 
	Title:	 	 	 
	Date:	December 12, 2013	 	 

 

    	22

    	 

    

 

	PENSCO Trust Co. F/B/O Mike Underwood Roth IRA	 	0.772%
	 	 	 	 
	By:	/s/ Michael A. Underwood	 	 
	Name:	Michael A. Underwood	 	 
	Title:	 	 	 
	Date:	December 20, 2013	 	 
	 	 	 	 
	PENSCO Trust Co. F/B/O Chad Hagler IRA	 	0.345%
	 	 	 	 
	By:	/s/ Chad Hagler	 	 
	Name:	Chad Hagler	 	 
	Title:	 	 	 
	Date:	December 16, 2013	 	 
	 	 	 	 
	 	 	 	 
	TOTAL:	 	 	100%

 

    	23

    	 

    

 

SCHEDULE 2

 

CHANGE REQUESTS

 

    	1

    	 

    

 

SCHEDULE 3

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This Assignment and
Assumption Agreement (“Assignment”) is entered into as of _____ day of ____________2014 (“Effective
Date”), by and among __________________________________________ (“Assignee”), and the members listed
on Schedule A, attached hereto (each an “Assignor” and collectively the “Assignors”),
with the joinder of Woodfield Investment Company, LLC (“Manager”).

 

RECITALS:

 

A.           Wake
Forest Apartments LLC (“Company”) was formed upon filing Articles of Organization with the North Carolina Secretary
of State on February 28, 2012 and is governed by that certain Operating Agreement of Wake Forest Apartments LLC dated July 13,
2012 (as amended, the “Operating Agreement”).

 

B.           Each
Assignor severally represents that he, she or it owns such Assignor’s respective membership interest in the Company as shown
on Schedule A attached hereto (each, an “Interest” and collectively, the “Interests”),
free of all liens, claims and encumbrances.

 

C.           Manager
represents that it is the sole manager of the Company and that the Interests set forth on Schedule A attached hereto
comprise one hundred percent (100%) of the membership interests of the Company.

 

D.           Pursuant
to that certain Purchase and Sale Agreement effective October 29, 2012 (the “Original Agreement”) by and between
the Company and Trade Street Operating Partnership, L.P. (“Trade Street”), as amended by that certain Amendment
to Purchase and Sale Agreement dated ______________, 2014 (the “First Amendment”) by and among the Company,
Trade Street, Manager and the Assignors (the Original Agreement together with the First Amendment, and as may be further amended,
being referred to herein as the “Agreement”), the Assignors desire to assign the Interests in the Company to
Assignee, free of liens and encumbrances, Manager desires to resign as manager of the Company, and the Assignors desire to consent
to Assignee’s appointment of a replacement manager of the Company.

 

AGREEMENT:

 

NOW, THEREFORE, in
consideration of Ten Dollars ($10.00), the mutual covenants set forth in this Assignment and the Operating Agreement, the consideration
to be paid in cash or immediately available funds to Assignors from the proceeds of the Closing pursuant to Section 1.1.1 of the
Agreement (the “Consideration”), and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

    	1

    	 

    

 

1.          Definitions.
All terms used herein which have their initial letter capitalized which have been specially defined in the Operating Agreement
shall have the same meaning herein as set forth in the Operating Agreement, unless expressly provided otherwise herein. All terms
used herein which have their initial letter capitalized and which have not been specifically defined in the Operating Agreement
but which have been specifically defined in the Agreement shall have the same meaning herein as set forth in the Agreement, unless
expressly provided otherwise herein.

 

2.          Assignment.
Each Assignor hereby assigns and transfers of his, her or its respective Interest (including the management and voting rights
related thereto, if any) in the Company to Assignee free of all liens, claims and encumbrances. Each Assignor and Manager hereby
approve the transfer of the Interests in the Company (including any and all applicable management rights related thereto) to Assignee
as set forth above and in the Agreement. Each Assignor consents to the admission of Assignee as the sole Member of the Company
owning the Interests (including any and all applicable the management and voting rights related thereto).

 

3.          Assumption.
Assignee hereby accepts the assignment of the Assignors’ Interests in the Company and assumes all obligations with respect
to such Interests first accruing from and after the Effective Date of this Assignment.

 

4.          Replacement
Manager. Manager hereby resigns as the manager of the Company, and Assignee appoints ______________ [to be designated by
Assignee] as the sole manager of the Company. Each Assignor hereby consents to the designation of such replacement manager
of the Company.

 

5.          Amendments.
The definition of “Members” in the Operating Agreements is amended to mean the Assignee.

 

6.          Sequencing.
Each Assignor hereby consents that all acts contemplated and effected by this Assignment and the Agreement shall be deemed, for
all purposes, to be effectuated in the following order: (i) the resignation of Manager as the manager of the Company, (ii) the
appointment of ________________ [to be designated by Assignee] as sole manager of the Company, (iii) the assignment of
all of the Interests in the Company from all Assignors to Assignee and admission of Assignee as sole Member in the Company, and
(iv) the amendment to the Operating Agreement to reflect the foregoing; provided, however, that all of the foregoing shall be
deemed to have occurred only upon the conclusion of Closing and the contemporaneous payment of the Consideration by Assignee in
cash or immediately available funds.

 

7.          Consideration.
The parties to this Assignment acknowledge and agree that they are each receiving reasonably equivalent value and sufficient consideration
for executing this Assignment.

 

8.          Representations
and Warranties. The representations and warranties of Manager and each of the Members contained in the Amendment are hereby
separately and severally recertified as of the Effective Date of this Assignment by each such party to the same extent set forth
in such Amendment.

 

    	2

    	 

    

 

9.          No
Joint Liability. The parties understand and acknowledge that the Assignors are signing this single, consolidated Assignment,
as opposed to signing separate assignment documents for each Assignor, for convenience purposes only. Notwithstanding anything
to the contrary contained in this Assignment, the Agreement or any other documents executed in connection with the subject transaction
and Closing, each Assignor set forth on Schedule A hereto joins in the execution of this Assignment for the limited
and specific purpose of performing his, her or its obligations hereunder only with respect to each such Assignor’s respective
share of and interest in the Interests, as if each Assignor were signing a separate assignment and assumption document for such
purposes. No Assignor shall be bound by or liable with respect to the obligations, liabilities, indemnifications, representations
or warranties of any other Assignor.

 

10.        Miscellaneous.

 

a.           This
Assignment may be executed in a number of identical counterparts which, taken together, shall constitute collectively one (1)
agreement; but in making proof of this Assignment, it shall not be necessary to produce or account for more than one such counterpart
executed by the party to be charged. This Assignment may be executed by email and/or telecopy.

 

b.           Any
future waiver, alteration, amendment or modification of any of the provisions of this Assignment shall not be valid or enforceable
unless in writing and signed by the parties affected.

 

c.           This
Assignment shall be binding upon and shall inure to the benefit of the parties hereto, their heirs, executors, administrators,
successors, legal representatives, and assigns.

 

d.           The
headings of paragraphs in this Assignment are for convenience of reference only and shall not in any way affect the interpretation
or construction of this Assignment.

 

e.           Notwithstanding
any provision to the contrary in the Agreement, this Assignment shall be governed by the laws of the State of North Carolina,
without regard to is conflicts of law and to Federal law, as applicable. The exclusive venue for any action arising out of or
related to this Assignment shall be the State or Federal courts in Wake County, North Carolina, and all parties agree to submit
to the personal jurisdiction of such courts.

 

f.            The
terms and conditions set forth in this Assignment are the product of joint draftsmanship by all parties, each party being represented
by counsel to the extent such party desired to be (or having knowingly and voluntarily elected not to be represented by counsel),
and any ambiguities in this Assignment or any documentation prepared pursuant to or in connection with this Assignment shall not
be construed against any of the parties because of draftsmanship.

 

    	3

    	 

    

 

g.           In
the event any provision of this Assignment shall be deemed invalid, such invalidity shall not invalidate the remainder of this
Assignment.

 

h.           In
the event all provisions of this Assignment require enforcement by such court, the prevailing party in any such action, in the
event of any judgment in such case, including all appellate levels, shall be entitled to an award of reasonable attorneys’
fees and costs incurred therein.

 

i.            All
covenants, representations and warranties set forth in this Assignment shall survive the execution of this Assignment for the
statute of limitations period.

 

[SIGNATURE PAGE FOLLOWS]

 

    	4

    	 

    

 

EXECUTED as of the date first above written.

 

	 	ASSIGNEE:
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	Date:	 

 

    	5

    	 

    

  

Manager hereby joins and consents to the
terms of this Assignment to agree to the terms of this Assignment.

 

	 	MANAGER
	 	 	 	 
	 	 	Woodfield Investment Company, LLC
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	Date:	 

 

    	6

    	 

    

 

SCHEDULE A to

Assignment and Assumption Agreement

 

	 	ASSIGNOR:
	 	 	 	 
	 	 	 
	 	 	Name:	 
	 	 	 	 
	 	 	 
	 	 	Name:	 

 

    	7

    	 

    

 

SCHEDULE 4

 

CONSTITUENT DOCUMENTS

 

    	1

    	 

    

 

SCHEDULE 5

 

FINANCIAL STATEMENTS

 

    	1

    	 

    

 

SCHEDULE 6

 

TOTAL CONTRACTS

 

NAME

 

    	1

    	 

    

 

SCHEDULE 7

 

SPECIFIED CONTRACTS

 

NAME

 

    	2

    	 

    

 

SCHEDULE 8

State of ___________

 

County of ________

 

AFFIDAVIT AND INDEMNITY

 

The undersigned, being first duly sworn,
on oath, deposes and says the following:

 

1.          The
undersigned is __________________________[title or capacity] of_________________________________[name of entity].

 

2.          To
the best knowledge of the undersigned,

 

		a.	There are presently
no defects in or liens, encumbrances or other claims against the title to the property described in that certain Commitment for
Title Insurance No. _________________________________  issued by [insert name of the insuring company] (hereinafter
referred to as “the Company"), having an Effective Date of _______ ______, (“the Commitment”),
other than those exceptions set forth therein, and other than the following: (If none, state "None");

 

and

 

		b.	There are presently no inchoate rights which may ripen
into any defect, lien, encumbrance or claim against the title to said property, other than the following: (If none, state "None")

 

3.          The
undersigned makes these statements after having questioned all of the other members or partners and the employees and agents,
if any, of [name of entity] who have had any substantial contact with any transaction or negotiation involving the property described
in the Commitment.

 

    	1

    	 

    

 

4.          The
undersigned makes these statements for the purpose of inducing the Company to issue the endorsement attached hereto as Exhibit
A to one or more of the owner’s or loan policies issued pursuant to the Commitment. 

 

	Sworn to and subscribed	 	 
	before me this ____ day of	 	 
	________________, 2011	 	 
		 	Name:  	 
	 	 	 	 
	Notary Public	 	 	 
	 	 	 	 
	(NOTARY SEAL)	 	 	 
	 	 	 	 
	My Commission Expires:	 	 	 
	 	 	 	 

 

The following indemnity is given to the
Company as a further inducement to it to issue the said endorsement:

 

The undersigned hereby indemnifies the
Company against any loss which the Company may suffer by virtue of any valid claim made under the said endorsement based on the
existence of any defect in or lien, encumbrance, right or claim against or with respect to the title to the aforesaid property
which was not disclosed in the above affidavit but which should have been so disclosed in order to make all statements in the
affidavit true and correct. The undersigned understands such losses may include court costs and attorney's fees expended by the
Company in defending the title or interest of the insured against such lien, encumbrance, right or claim.

 

Dated:_______________________________

 

	 	WOODFIELD INVESTMENT COMPANY, LLC, a Delaware limited liability company
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	2Exhibit 10.10

 

DEED
OF TRUST, ASSIGNMENT OF LEASES AND RENTS

AND
SECURITY AGREEMENT AND FIXTURE FILING

 

(COLLATERAL INCLUDES FIXTURES)

 

WAKE
FOREST APARTMENTS LLC, a Delaware limited liability company,

 

Grantor

 

to

 

THE
FIDELITY COMPANY, a North Carolina corporation,

Trustee

 

for
the benefit of

 

NEW
YORK LIFE INSURANCE COMPANY,

Beneficiary

 

Dated as of: January 21, 2014

 

Premises:              Estates at Wake
Forest Apartments

1524 Woodfield Creek Drive, Wake
Forest, North Carolina 27587

 

Drafted by and Record And Return To:

 

Womble Carlyle Sandridge & Rice, LLP

One West Fourth Street

Winston-Salem, NC 27101

Attn: Hardin G. Halsey, Esq. 

 

    	
WCSR 31792892	 	Deed of Trust
Loan No. 374-0551

    	 

    

 

TABLE OF CONTENTS

 

	DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS AND SECURITY AGREEMENT AND FIXTURE FILING	1
	 	 
	GRANTING CLAUSES	1
	 	 
	DEFINITIONS AND INTERPRETATION	5
	 	 
	ARTICLE I COVENANTS AND AGREEMENTS	10
	 	 	 	 
	1.01	Payment, Performance and Security	10
	 	 	 
	1.02	Payment of Taxes, Assessments, etc.	10
	 	 	 	 
	 	A.	 Impositions	10
	 	 	 	 
	 	B.	Installments	11
	 	 	 	 
	 	C.	Receipts	11
	 	 	 	 
	 	D.	Evidence of Payment	11
	 	 	 	 
	 	E.	Payment by Beneficiary	11
	 	 	 	 
	 	F.	Change in Law	11
	 	 	 	 
	 	G.	Joint Assessment	12
	 	 	 	 
	 	H.	Permitted Contests	12
	 	 	 	 
	 	I.	No Lease Default	12
	 	 	 	 
	1.03	Insurance	 	13
	 	 	 	 
	 	A.	All Risk Coverage	13
	 	 	 	 
	 	B.	Additional Coverage	13
	 	 	 	 
	 	C.	Separate Insurance	14
	 	 	 	 
	 	D.	Insurers; Policies	14
	 	 	 	 
	 	E.	Beneficiary's Right to Secure Coverage	15
	 	 	 	 
	 	F.	Damage or Destruction	15
	 	 	 	 
	 	G.	Transfer of Interest in Policies	16
	 	 	 	 
	 	H.	Grantor's Use of Proceeds	16
	 	 	 	 
	1.04	Escrow Payments	18
	 	 	 	 
	1.05	Care and Use of the Premises	18
	 	 	 	 
	 	A.	Maintenance and Repairs	18

 

    	
WCSR 31792892	i	Deed of Trust
Loan No. 374-0551

    	 

    

 

	 	B.	Standard of Repairs	19
	 	 	 	 
	 	C.	Removal of Equipment	19
	 	 	 	 
	 	D.	Compliance With Laws and Insurance	19
	 	 	 	 
	 	E.	Hazardous Materials	19
	 	 	 	 
	 	F.	Compliance With Instruments of Record	22
	 	 	 	 
	 	G.	Alteration of Secured Property	22
	 	 	 	 
	 	H.	 Parking	22
	 	 	 	 
	 	I.	Entry on Secured Property	22
	 	 	 	 
	 	J.	No Consent to Alterations or Repairs	22
	 	 	 	 
	 	K.	Preservation of Lien; Mechanic's Liens	23
	 	 	 	 
	 	L.	Use of Secured Property by Grantor	23
	 	 	 	 
	 	M.	Use of Secured Property by Public	23
	 	 	 	 
	 	N.	 Management	23
	 	 	 	 
	 	O.	Permitted Contests	23
	 	 	 	 
	1.06	Financial Information	24
	 	 	 	 
	 	A.	Financial Statements	24
	 	 	 	 
	 	B.	Right to Inspect Books and Records	24
	 	 	 	 
	1.07	Condemnation	25
	 	 	 	 
	 	A.	Beneficiary's Right to Participate in Proceedings	25
	 	 	 	 
	 	B.	Application of Condemnation Award	25
	 	 	 	 
	 	C.	Reimbursement of Costs	26
	 	 	 	 
	 	D.	Existing Obligations	26
	 	 	 	 
	1.08	Leases	27
	 	 	 	 
	 	A.	Performance of Lessor's Covenants	27
	 	 	 	 
	 	B.	Notice of Default	27
	 	 	 	 
	 	C.	Representations Regarding Leases	27
	 	 	 	 
	 	D.	Covenants Regarding Leases	28
	 	 	 	 
	 	E.	Application of Rents	29
	 	 	 	 
	 	F.	Indemnity Against Unapproved Lease Modifications and Amendment	29
	 	 	 	 
	1.09	Assignment
of Leases, Rents, Income, Profits and Cash Collateral	30
	 	 	 	 
	 	A.	Assignment; Discharge of Obligations	30
	 	 	 	 
	 	B.	Entry Onto Secured Property; Lease of Secured Property	30
	 	 	 	 
	 	C.	License to Manage Secured Property	30
	 	 	 	 
	 	D.	Delivery of Assignments	31

 

    	
WCSR 31792892	ii	Deed of Trust
Loan No. 374-0551

    	 

    

 

	 	E.	Indemnity	31
	 	 	 	 
	1.10.	Further Assurances	 	31
	 	 	 	 
	 	A.	General; Appointment of Attorney-in-Fact	31
	 	 	 	 
	 	B.	Statement Regarding Obligations	31
	 	 	 	 
	 	C.	Additional Security Instruments	32
	 	 	 	 
	 	D.	Security Agreement	32
	 	 	 	 
	 	E.	Preservation of Grantor's Existence	33
	 	 	 	 
	 	F.	Further Indemnities	33
	 	 	 	 
	 	G.	Absence of Insurance	34
	 	 	 	 
	1.11	Prohibition on Transfers, Liens or Further Encumbrances	34
	 	 	 	 
	 	A.	Continuing Ownership and Management	34
	 	 	 	 
	 	B.	Prohibition on Transfers, Liens or Further Encumbrances	34
	 	 	 	 
	 	C.	Acceleration of Obligations	35
	 	 	 	 
	1.12	Expenses	 	35
	 	 	 	 
	ARTICLE II REPRESENTATIONS AND WARRANTIES	36
	 	 	 	 
	2.01	Warranty of Title	36
	 	 	 
	2.02	Ownership Of Additional or Replacement Improvements and Personal Property	36
	 	 	 	 
	2.03	No Pending Material Litigation or Proceeding; No Hazardous Materials	36
	 	 	 	 
	 	A.	Proceedings Affecting Grantor	36
	 	 	 	 
	 	B.	Proceedings Affecting Secured Property	37
	 	 	 	 
	 	C.	No Hazardous Material	37
	 	 	 	 
	 	D.	No Litigation Regarding Hazardous Material	37
	 	 	 	 
	2.04	Valid Organization, Good Standing and Qualification of Grantor; Other Organizational Information	38
	 	 	 
	2.05	Authorization; No Legal Restrictions on Performance	38
	 	 	 
	2.06	Compliance With Laws	39
	 	 	 
	2.07	Tax Status	39
	 	 	 
	2.08	Absence of Foreign or Enemy Status; Absence of Blocked Persons; Foreign Corrupt Practices Act	39
	 	 	 
	2.09	Federal Reserve Board Regulations	40
	 	 	 
	2.10	Investment Company Act and Public Utility Holding Company Act	40
	 	 	 
	2.11	Exempt Status of Transactions Under Securities Act and Representations Relating Thereto	40
	 	 	 
	2.12	ERISA	40

 

    	
WCSR 31792892	iii	Deed of Trust
Loan No. 374-0551

    	 

    

 

	ARTICLE III  DEFAULTS	41
	 	 	 	 
	3.01	Events of Default	41

 

	ARTICLE IV	REMEDIES	43
	 	 	 
	4.01	Acceleration, Foreclosure, etc.	43
	 	 	 	 
	 	A.	Foreclosure	43
	 	 	 	 
	 	B.	Partial Foreclosure	43
	 	 	 	 
	 	C.	Entry	44
	 	 	 	 
	 	D.	Collection of Rents, etc.	44
	 	 	 	 
	 	E.	Receivership	44
	 	 	 	 
	 	F.	Specific Performance	44
	 	 	 	 
	 	G.	Recovery of Sums Required To Be Paid	45
	 	 	 	 
	 	H.	Other Remedies	45
	 	 	 	 
	 	I.	State Specific Remedies	45
	 	 	 	 
	4.02	No Election of Remedies	45
	 	 	 
	4.03	Beneficiary's Right to Release, etc.	45
	 	 	 
	4.04	Beneficiary's Right to Remedy Defaults, etc.	46
	 	 	 
	4.05	Waivers	46
	 	 	 
	4.06	Prepayment	47
	 	 	 
	  ARTICLE V	MISCELLANEOUS	48
	 	 	 
	5.01	Non-Waiver	48
	 	 	 
	5.02	Sole Discretion of Beneficiary	48
	 	 	 
	5.03	Legal Tender	48
	 	 	 
	5.04	No Merger or Termination	48
	 	 	 
	5.05	Discontinuance of Actions	49
	 	 	 
	5.06	Headings	49
	 	 	 
	5.07	Notice to Parties	49
	 	 	 
	5.08	Successors and Assigns Included In Parties	50
	 	 	 
	5.09	Changes and Modifications	50
	 	 	 
	5.10	Applicable Law	50
	 	 	 
	5.11	Invalid Provisions to Affect No Others	50
	 	 	 
	5.12	Usury Savings Clause	50
	 	 	 
	5.13	No Statute of Limitations	51
	 	 	 
	5.14	Late Charges	51

 

    	
WCSR 31792892	iv	Deed of Trust
Loan No. 374-0551

    	 

    

 

	5.15	Waiver of Jury Trial	51
	 	 	 
	5.16	Continuing Effectiveness	51
	 	 	 
	5.17	Time of Essence	51
	 	 	 
	5.18	Non-Recourse	51
	 	 	 
	5.19	Non-Business Days	54
	 	 	 
	5.20	Single Purpose Entity	54
	 	 	 
	ARTICLE VI	SPECIAL STATE PROVISIONS	59
	 	 	 	 
	6.01	Maturity Date	59
	 	 	 
	6.02	Attorneys’ Fees	60
	 	 	 
	6.03	Interest Before and After Judgment	60
	 	 	 
	6.04	Power of Sale	60
	 	 	 
	6.05	Environmental Laws	61
	 	 	 
	6.06	Substitution of Trustee	61
	 	 	 
	6.07	Waiver	61
	 	 	 
	6.08	Deed of Trust as Financing Statement	62
	 	 	 
	6.09	Security Agreement	62

 

    	
WCSR 31792892	v	Deed of Trust
Loan No. 374-0551

    	 

    

 

DEED OF TRUST, ASSIGNMENT OF LEASES AND
RENTS

AND SECURITY AGREEMENT AND FIXTURE FILING

 

(Collateral Includes Fixtures)

 

DEED OF TRUST,
ASSIGNMENT OF LEASES AND RENTS AND SECURITY AGREEMENT AND FIXTURE FILING ("Deed of Trust"), dated as of the
date set forth on the cover page hereof, from WAKE FOREST APARTMENTS LLC ("Grantor"), a
Delaware limited liability company, having an office at 19950 West Country Club Drive, Suite 800, Aventura, Florida 33180, Attn:
Richard Ross, to THE FIDELITY COMPANY, a North Carolina corporation, having its principal place of business at One
West Fourth Street, Winston-Salem, North Carolina 27101 (“Trustee”), as trustee for the benefit of NEW YORK LIFE
INSURANCE COMPANY ("Beneficiary"), a New York mutual insurance company, having an office at 51 Madison Avenue,
New York, New York 10010-1603.

 

Grantor has executed
and delivered to Beneficiary a Promissory Note (the promissory note, together with all extensions, renewals or modifications thereof,
being hereinafter collectively called the "Note"), dated as of even date herewith, payable to the order of Beneficiary
in the original principal sum of Eighteen Million Six Hundred Twenty-Five Thousand and No/100 Dollars ($18,625,000.00), lawful
money of the United States of America. The Note is secured by this Deed of Trust and the terms, covenants and conditions of the
Note are hereby incorporated herein and made a part hereof.

 

In consideration of
the sum of Ten Dollars ($10.00) paid and other good and lawful consideration, the receipt and sufficiency of which are hereby acknowledged
and in order to secure the Obligations (as hereinafter defined), Grantor hereby irrevocably grants, bargains, sells, assigns, transfers
and conveys to Trustee, its successors and assigns, in fee simple forever, IN TRUST, WITH POWER OF SALE, the following property
and rights, whether now owned or held or hereafter acquired and Grantor further grants to Trustee a security interest in the following
property:

 

GRANTING CLAUSE ONE

 

All that tract or parcel
of land ("Land") more particularly described in Exhibit A hereto.

 

GRANTING CLAUSE TWO

 

    	
WCSR 31792892	1	Deed of Trust
Loan No. 374-0551

    	 

    

 

All buildings, structures
and improvements (collectively, "Improvements") now or hereafter located on the Land, including, but not limited
to, all of Grantor’s right, title and interest in and to all machinery, apparatus, equipment and fixtures attached to, or
used or procured for use in connection with the operation or maintenance of, any Improvement, all refrigerators, shades, awnings,
venetian blinds, screens, screen doors, storm doors, storm windows, stoves, ranges, dishwashers, curtain fixtures, partitions,
attached floor coverings and fixtures, apparatus, equipment or articles used to supply sprinkler protection and waste removal,
laundry equipment, furniture, furnishings, appliances, office equipment, elevators, escalators, tanks, dynamos, motors, generators,
switchboards, communication equipment, electrical equipment, television and radio systems, heating, plumbing, lifting and ventilating
apparatus, air-cooling and air conditioning apparatus, gas and electric fixtures, fittings and machinery and all other personal
property and equipment of every kind and description, excluding trade fixtures and personal property of any Lessee (as hereinafter
defined), unless such trade fixtures or personal property become the property of Grantor upon expiration or termination of the
term of the Lease in question, and all accessions, renewals and replacements thereof and all articles in substitution therefor.
Whether or not any of the foregoing are attached to the Land or any of the Improvements in any manner, all such items shall be
deemed to be fixtures, part of the real estate and security for the Obligations. The Land and Improvements are herein collectively
called "Premises". To the extent any of the Improvements are not deemed real estate under the laws of the State,
they shall be deemed personal property and this grant shall include all of Grantor's right, title and interest in, under and to
such personal property and all other personal property now or hereafter attached to or located upon the Premises or used or useable
in the management, maintenance or operation of the Improvements or the activities conducted on the Premises, including, but not
limited to, all computer hardware and software, but excluding trade fixtures and personal property of any Lessee, unless such personal
property becomes the property of Grantor upon expiration or termination of the Lease in question, and all accessions, renewals
and replacements thereof and all articles in substitution therefor (collectively, “Personal Property”).

 

GRANTING CLAUSE THREE

 

All now or hereafter
existing easements and rights-of-way and all right, title and interest of Grantor, in and to any land lying within the right-of-way
of any street, opened or proposed, adjoining the Premises, any and all sidewalks, alleys and strips and gores of land, streets,
ways, passages, sewer rights, waters, water courses, water rights and powers, estates, rights, titles, interests, privileges, liberties,
tenements, hereditaments, air rights, development rights, covenants, conditions, restrictions, credits and appurtenances of any
nature whatsoever, in any way belonging, relating or pertaining to, or above or below the Premises, whether now or hereafter existing.

 

GRANTING CLAUSE FOUR

 

All intangible
rights, interests and properties of Grantor relating to the Premises or any part thereof, and necessary or desirable for the continued
ownership, use, operation, leasing or management thereof, whether now or hereafter existing, including, but not limited to, any
trademarks, servicemarks, logos or trade names relating to the Premises or by which the Premises or any part thereof may be known
and any other franchises or other agreements relating to services in connection with the use, occupancy, or maintenance of the
Premises, instruments, actions or rights in action and all intangible property and rights relating to the Premises.

 

GRANTING CLAUSE FIVE

 

All accounts receivable,
insurance policies, contract rights, interests, rights under all oil, gas and mineral leases and agreements and all benefits arising
therefrom, and all other claims, both at law and in equity, relating to the Premises, which Grantor now has or may hereafter acquire.

 

    	
WCSR 31792892	2	Deed of Trust
Loan No. 374-0551

    	 

    

 

GRANTING CLAUSE SIX

 

All estate, interest,
right, title and other claim or demand which Grantor now has or may hereafter acquire in any and all awards or payments relating
to the taking by eminent domain, or by any proceeding or purchase in lieu thereof, of the whole or any part of the Premises, including,
but not limited to, all awards resulting from a change of grade of any street and awards for severance damages, together, in all
cases, with all interest thereon.

 

GRANTING CLAUSE SEVEN

 

All proceeds of, and
any unearned premiums on, insurance policies covering all or any part of the Premises, including, but not limited to, the right
to receive and apply the proceeds of all insurance or judgments related to the Premises, or settlements made in lieu thereof.

 

GRANTING CLAUSE EIGHT

 

All estate, interest,
right, title and other claim or demand which Grantor now has or may hereafter acquire against anyone with respect to any damage
to all or any part of the Premises, including, but not limited to, damage arising or resulting from any defect in or with respect
to the design or construction of all or any part of the Improvements.

 

GRANTING CLAUSE NINE

 

All deposits or other
security or advance payments, including, but not limited to, rental payments, made by or on behalf of Grantor to others in connection
with the Obligations or the ownership or operation of all or any part of the Premises, including, but not limited to, any such
deposits or payments made with respect to (a) Impositions (as hereinafter defined),(b) insurance policies, (c) utility service,
(d) cleaning, maintenance, repair or similar services, (e) refuse removal or sewer service, (f) rental of equipment, if any, used
by or on behalf of Grantor, and (g) parking or similar services or rights.

 

GRANTING CLAUSE TEN

 

All remainders, reversions
or other estates in the Premises or any part thereof.

 

GRANTING CLAUSE ELEVEN

 

All management contracts,
permits, certificates, licenses, approvals, contracts, entitlements and authorizations, however characterized, now or hereafter
issued or in any way furnished for the acquisition, construction, development, operation and/or use of the Land, the Improvements
or the Leases, including, but not limited to, building permits, environmental certificates, licenses, certificates of operation
or occupancy, warranties and guaranties, except, in each case, to the extent that such mortgage, grant, assignment, transfer or
pledge is restricted by the terms of such management contract, permit, certificate, license, approval, contract, entitlement or
authorization and such restriction is enforceable under applicable law.

 

    	
WCSR 31792892	3	Deed of Trust
Loan No. 374-0551

    	 

    

 

GRANTING CLAUSE TWELVE

 

All right, title and
interest of Grantor in and to (1) all Leases and all other tenancies, occupancies, subleases, franchises and concessions of the
Land or Improvements or which in any way affect the use or occupancy of all or any part of the Land or Improvements, and any other
agreements affecting the use and occupancy of all or any part of the Land or Improvements, in each case, whether now or hereafter
existing, and all right, title and interest of Grantor thereunder, including all rights to all security or other deposits, (2)
all guarantees of the obligations of any lessee, licensee or other similar party under any of the foregoing, whether now or hereafter
existing, and (3) the Rents, regardless of whether the Rents accrue before or after foreclosure or during the full period of redemption.

 

GRANTING CLAUSE THIRTEEN

 

All right, title and
interest of Grantor in and to all options to purchase the Premises or any portion thereof or interest therein or in and to any
greater estate in the Premises owned or hereafter acquired by Grantor and the right to exercise the benefits of any options or
rights of first refusal, to give consents and to receive monies payable to Grantor thereunder and in connection therewith.

 

GRANTING CLAUSE FOURTEEN

 

All right, title and
interest of Grantor in and to all easements, roads, streets, ways, sidewalks, alleys, passages, sewer rights, other utility rights,
encroachment rights, and all estates, rights, titles, interests, privileges, liberties, tenements, hereditaments, air rights, and
appurtenances of any nature whatsoever, in any way belonging, relating or pertaining to, or arising under easement agreements,
declarations, reciprocal easement agreements or other instruments, benefitting the Land or Improvements whether now or hereafter
existing.

 

GRANTING CLAUSE FIFTEEN

 

All proceeds, products,
replacements, additions, substitutions, renewals and accessions of any of the foregoing, including, but not limited to, personal
property acquired with cash proceeds.

 

WITH RESPECT to any
portion of the Secured Property (as hereinafter defined) which is not real estate under the laws of the State in which the Secured
Property is located, Grantor hereby grants a security interest in the same to Beneficiary for the purposes set forth hereunder
and the references above to Trustee shall be deemed to also include Beneficiary with respect to such portion of the Secured Property
and Beneficiary shall also be vested with all rights, power and authority granted hereunder or by law to Trustee with respect thereto.

 

TO HAVE AND TO HOLD
the above granted and described Secured Property unto and to the use and benefit of Trustee and its successors and assigns in fee
simple forever for the benefit of Beneficiary and the successors and assigns of Beneficiary forever.

    	
WCSR 31792892	4	Deed of Trust
Loan No. 374-0551

    	 

    

 

IN TRUST, WITH POWER
OF SALE, to secure the payment and performance to Beneficiary of the Obligations at the time and in the manner provided for its
payment and performance in the Note, this Deed of Trust and in the other Obligations;

 

PROVIDED, HOWEVER,
these presents are upon the express condition, if Grantor shall well and truly pay and perform to Beneficiary the Obligations at
the time and in the manner provided in the Note, this Deed of Trust and in the other Obligations and shall well and truly abide
by and comply with each and every covenant and condition set forth herein, in the Note, the Obligations and in the other Loan Instruments,
then this Deed of Trust shall be released and cancelled of record;

 

DEFINITIONS AND INTERPRETATION

 

As used in this Deed
of Trust, the following terms shall have the meanings specified below:

 

“Acceptable
Delaware LLC” means a limited liability company formed under Delaware law which (a) has at least one springing member,
which, upon the dissolution of all of the members of the limited liability company or the withdrawal or the disassociation of all
of the members from the limited liability company, shall immediately become the sole member of such limited liability company,
and (b) otherwise meets Beneficiary’s criteria applicable to such entities.

 

"Assignment"
shall mean the Assignment of Leases, Rents, Income and Cash Collateral, dated as of the date hereof, from Grantor, as assignor,
to Beneficiary, as assignee.

 

"Beneficiary's
Architect" shall mean a licensed architect or registered engineer approved by Beneficiary.

 

"Code"
shall mean the Uniform Commercial Code of the State.

 

"Condemnation
Proceedings" shall have the meaning set forth in Section 1.07A.

 

"Debt Coverage
Ratio" shall mean, for any period, a fraction, the numerator of which shall equal the projected net operating income of
the Secured Property for such period less a replacement reserve amount equal to $250 per unit per year, and the denominator of
which shall equal the aggregate of the principal and interest for such period utilizing a thirty (30) year amortization schedule.
Such calculation shall be as determined by Beneficiary.

 

“Environmental
Claim” shall mean any asserted claim or demand, of any kind or nature, by any Person, for any actual or alleged Environmental
Damage, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute, ordinance or
regulation, common law or otherwise.

 

"Environmental
Damage" shall mean any and all claims, judgments, damages (including consequential and punitive damages), losses, penalties,
interest, fines, liabilities (including strict liability), obligations, responsibilities, encumbrances, liens, costs and expenses,
of whatever kind or nature, contingent or otherwise, matured or unmatured, foreseeable or unforeseeable, including attorneys’,
experts’ and consultants’ fees and disbursements, including:

 

    	
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		(a)	those relating to any investigation, defense or settlement of any claim, suit, administrative proceeding
or investigation of any kind or any directive of any Governmental Agency (as hereinafter defined);

 

		(b)	those relating to damages for personal injury, or injury to property including natural resources,
occurring in, on, under or about the Secured Property, including lost profits and the cost of demolition and rebuilding of any
improvements on real property;

 

		(c)	diminution in the value of the Secured Property, and damages for the loss, or restriction on the
use or adverse impact on the marketing, of the Secured Property or any part thereof;

 

		(d)	loss of the priority of the lien of this Deed of Trust due to the imposition of a lien against
the Secured Property; and

 

		(e)	those incurred in connection with the investigation, cleanup, remediation, removal, abatement,
containment, closure, restoration, monitoring work or other cure of any violation of an Environmental Requirement required by any
Governmental Agency or reasonably necessary to make full economic use of the Secured Property or in connection with any other property,
including the performance of any pre-remedial studies and investigations and post remedial monitoring and cure, or any action to
prevent a Release or threat of Release or to minimize the further Release of any Hazardous Material so it does not migrate or endanger
or threaten to endanger public health or the environment.

 

“Environmental
Requirements” shall mean any and all Legal Requirements (as hereinafter defined) relating to the protection of the environment,
health or safety, including:

 

		(a)	all Legal Requirements pertaining to reporting, licensing,
permitting, investigation, remediation or removal of, or pertaining to Releases or threatened Releases of, Hazardous Materials,
chemical substances, pollutants, contaminants or hazardous or toxic substances, materials or wastes, whether solid, liquid or
gaseous in nature, including Releases or threatened Releases into the air, soil, surface water, ground water or land;

 

		(b)	all Legal Requirements pertaining to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of Hazardous Materials, chemical substances, pollutants, contaminants or hazardous or
toxic substances, materials or wastes, whether solid, liquid or gaseous in nature; and

 

    	
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		(c)	all Legal Requirements pertaining to industrial hygiene or the protection of the health and safety
of employees or the public.

 

"ERISA"
shall have the meaning set forth in Section 2.12.

 

"Event of Default"
shall have the meaning set forth in Section 3.01.

 

"Governmental
Agency" shall mean any government, quasi-governmental or government sponsored enterprise, legislative body, commission,
board, regulatory authority, bureau, administrative or other agency, court, arbitrator, grand jury or any other public body or
entity or instrumentality, whether domestic, foreign, federal, state, county or municipal.

 

"Guarantor,"
shall mean any guarantor of all or any portion of the Obligations and any indemnitor (other than Grantor) under the Environmental
Indemnity Agreement of even date herewith, executed by Grantor and such indemnitor in favor of Beneficiary or any subsequent Environmental
Indemnity Agreement or similar agreement executed by Grantor and an indemnitor in favor of Beneficiary and such term shall include,
without limitation, the Limited Guarantor (as hereinafter defined).

 

"Hazardous
Materials" shall mean any substance:

 

		(a)	the presence of which requires notification, investigation or remediation under any Environmental
Requirement;

 

		(b)	which is or becomes designated, defined, classified or regulated as "hazardous", "toxic",
"noxious", "waste", "pollutant", "contaminant" or other similar term, or which requires
remediation or is regulated under any present or future Environmental Requirement, including the Comprehensive Environmental Response,
Compensation and Liability Act (42 U.S.C. Section 9601 et seq.), Resource Conservation and Recovery Act (42 U.S.C.
Section 6901 et seq.), Federal Clean Air Act (42 U.S.C. Section 7401 et seq.), Federal Hazardous Materials
Transportation Act (49 U.S.C. Section 5101 et seq.), Federal Clean Water Act (33 U.S.C. Section 1251 et seq.),
Federal Environmental Pesticide Control Act (7 U.S.C. Section 136 et seq.), Federal Toxic Substances Control Act
(15 U.S.C. Section 2601 et seq.), Federal Safe Drinking Water Act (42 U.S.C. Sections 300(f), et seq.),
and the State Environmental Laws described in the Special State Provisions of Article VI below;

 

		(c)	which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic
or otherwise hazardous and is or becomes regulated by any Governmental Agency;

 

    	
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		(d)	the presence of which on the Secured Property causes or threatens to cause a nuisance relating
to the Secured Property or adjacent properties or poses or threatens to pose a hazard relating to the Secured Property or adjacent
properties or to the health or safety of Persons on or about the Secured Property or adjacent properties;

 

		(e)	which contains asbestos, gasoline, diesel fuel or other petroleum hydrocarbons, volatile organic
compounds, polychlorinated biphenyls (PCBs) or urea formaldehyde foam insulation;

 

		(f)	which contains or emits radioactive particles, waves or material, including radon gas;

 

		(g)	which is or constitutes a part of an underground storage tank; or

 

		(h)	which is or contains mold, mildew, fungi, bacteria or other microbial matter which poses a threat
to human health or the environment.

 

"Hazardous
Material Claims" shall have the meaning set forth in Section 1.05E(4).

 

"Impositions"
shall have the meaning set forth in Section 1.02A.

 

"Improvements"
shall have the meaning set forth in Granting Clause Two.

 

"Increased
Rate" shall have the meaning set forth in the Note.

 

“Indemnified
Claims” shall have the meaning set forth in Section 1.05E(1).

 

"Land"
shall have the meaning set forth in Granting Clause One.

 

"Lease"
and "Leases" shall have the respective meanings set forth in Section 1.08A.

 

"Legal Requirements"
shall mean all present or future laws, statutes, permits, approvals, plans, authorizations, guidelines, franchises, ordinances,
restrictions, orders, rules, codes, regulations, judgments, decrees, injunctions or requirements of all Governmental Agencies or
any officers thereof, including any Board of Fire Underwriters.

 

"Lessee"
shall have the meaning set forth in Section 1.08A.

 

“Limited Guarantor”
shall mean collectively, Trade Street Operating Partnership, LP and Trade Street Residential, Inc.

 

"Loan"
shall mean the mortgage loan evidenced by the Note and secured by this Deed of Trust.

 

    	
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"Loan Instruments"
shall mean the Note, this Deed of Trust, the Assignment and each other instrument now or hereafter given to evidence, secure, indemnify,
guaranty or otherwise assure or provide for the payment or performance of the Obligations or otherwise executed in connection with
the Loan by Grantor, Guarantor or any other Person liable for any of the Obligations.

 

“Make-Whole
Amount” shall have the meaning set forth in the Note.

 

"Maturity Date"
shall have the meaning set forth in the Note and which is also reflected in Article VI hereof.

 

“Non-Recourse
Exceptions” shall have the meaning set forth in Section 5.18.

 

"Note"
shall have the meaning set forth in the second introductory paragraph of this Deed of Trust.

 

"Obligations"
shall mean and include all indebtedness, obligations, covenants, agreements and liabilities of Grantor to Beneficiary, including
all obligations to pay interest, the Make-Whole Amount and all charges and advances, whether direct or indirect, existing, future,
contingent or otherwise, due or to become due, pursuant to or arising out of or in connection with the Note, this Deed of Trust,
the Assignment or any other Loan Instrument, all modifications, extensions and renewals of any of the foregoing and all expenses
and costs of collection or enforcement, including reasonable attorneys' fees and disbursements incurred by Beneficiary in the collection
or enforcement of any of the Loan Instruments or in the exercise of any rights or remedies pursuant to the Loan Instruments or
applicable law.

 

"Partial Foreclosure"
shall have the meaning set forth in Section 4.01B.

 

"Person"
shall mean a corporation, a limited or general partnership, a limited liability company or partnership, a joint stock company,
a joint venture, a trust, an unincorporated association, a Governmental Agency, an individual or any other entity similar to any
of the foregoing.

 

"Personal Property"
shall have the meaning set forth in Granting Clause Two.

 

"Premises"
shall have the meaning set forth in Granting Clause Two.

 

"Proceeds"
shall have the meaning set forth in Section 1.03F(2).

 

"Rents"
shall mean all rents, issues, profits, cash collateral, royalties, income and other benefits derived from the Secured Property
or any part thereof, including, without limitation, benefits accruing from all present and future leases and agreements, including,
without limitation, oil, gas and mineral leases and agreements.

 

"Rent Roll"
shall mean the rent roll for the Secured Property attached to the Rent Roll Certification.

 

    	
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"Rent Roll
Certification" shall mean the certification dated of even date executed by Grantor in favor of Beneficiary certifying
facts with respect to the Rent Roll.

 

“Release”
shall mean any release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration
into the environment.

 

"Reserve Deposit
Agreement" shall mean that certain Reserve Deposit Agreement of even date herewith between Beneficiary and Grantor, as
amended from time to time.

 

"Secured Property"
shall mean the Premises, the Personal Property and all other rights and interests described in the Granting Clauses of this Deed
of Trust.

 

"State"
shall mean the State, Commonwealth or territory in which the Land is located.

 

"Transfer"
shall have the meaning set forth in Section 1.11B.

 

As used in this Deed
of Trust (a) words such as "herein", "hereof", "hereto", "hereunder" and "hereby"
or similar terms refer to this Deed of Trust as a whole and not to any specific Section or provision hereof; (b) wherever the singular
or plural number or the masculine, feminine or neuter gender is used, it shall include each other number or gender; and (c) the
word "including" shall mean "including, without limitation," and the word "includes" shall mean "includes,
without limitation.”

 

ARTICLE I

COVENANTS AND AGREEMENTS

 

Grantor hereby covenants
and agrees as follows:

 

1.01      Payment,
Performance and Security. Grantor shall pay when due the amount of, and otherwise timely perform, all Obligations.

 

This Deed of Trust shall secure all Obligations.

 

1.02      Payment
of Taxes, Assessments, etc.

 

1.02A.  Impositions.
Grantor shall pay prior to delinquency, before any fine, penalty, interest or cost for the nonpayment thereof may be added thereto,
and without any right of offset or credit against any interest or other amounts payable to Beneficiary pursuant to this Deed of
Trust or on the Note, all taxes, assessments, water and sewer rents, rates and charges, transit taxes, charges for public utilities,
excises, levies, vault taxes or charges, license and permit fees and other governmental charges, general and special, ordinary
and extraordinary, unforeseen and foreseen, of any kind and nature whatsoever (including penalties, interest costs and charges
accrued or accumulated thereon), which at any time may be assessed, levied, confirmed, imposed upon, or become due and payable
out of or in respect to, or become a lien on, the Secured Property or any part thereof, or any appurtenance thereto (all of the
foregoing collectively, "Impositions" and individually, an "Imposition").

 

    	
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1.02B.  Installments.
Notwithstanding anything to the contrary contained in Section 1.02A , if by law any Imposition, at the option of the taxpayer,
may be paid in installments, and provided interest shall not accrue on the unpaid balance of such Impositions, Grantor may exercise
the option to pay the same in installments and, in such event, shall pay such installments as the same become due and before any
fine, penalty, interest or cost may be added thereto.

 

1.02C.  Receipts.
Grantor, upon request of Beneficiary, will furnish to Beneficiary within ten (10) days before the date when any Imposition would
become delinquent, official receipts of the appropriate taxing authority, or other evidence reasonably satisfactory to Beneficiary,
evidencing the payment thereof.

 

1.02D.  Evidence
of Payment. The bill, certificate or advice of nonpayment, issued by the appropriate official (designated by law either to
make or issue the same or to receive payment of any Imposition), of the nonpayment of an Imposition shall be prima facie evidence
that such Imposition is due and unpaid at the time of the making or issuance of such certificate, advice or bill. Grantor shall
pay Beneficiary, on demand, all charges, costs and expenses of every kind including each tax service search fee or charge incurred
by Beneficiary at any time or times during the term of this Deed of Trust in connection with obtaining evidence satisfactory to
Beneficiary that the payment of all Impositions is current and that there is no Imposition due and owing or which has become or
given rise to a lien on the Secured Property or any part thereof or any appurtenance thereto.

 

1.02E.  Payment
by Beneficiary. If Grantor shall fail to pay any Imposition in accordance with the provisions of this Section 1.02,
Beneficiary, at its option and at such time as it may elect, may pay such Imposition, but shall be under no obligation to do so.
Grantor will repay to Beneficiary, on demand, any amount so paid by Beneficiary, with interest thereon at the Increased Rate from
the date of such payment by Beneficiary to the date of repayment by Grantor. This Deed of Trust shall secure each such amount and
such interest.

 

1.02F.  Change in
Law. In the event of the passage after the date of this Deed of Trust of any law deducting the Obligations from the value of
the Secured Property or any part thereof for the purpose of taxation or resulting in any lien thereon, or changing in any way the
laws now in force for the taxation of this Deed of Trust or the Obligations for state or local purposes, or the manner of the operation
of any such taxes so as to affect the interest of Beneficiary, then, and in such event, Grantor shall bear and pay the full amount
of such taxes, provided that if for any reason payment by Grantor of any such new or additional taxes would be unlawful or if the
payment thereof would constitute usury or render the Loan or the Obligations wholly or partially usurious under any of the terms
or provisions of the Note, this Deed of Trust or otherwise, Beneficiary may, at its option, declare all Obligations secured by
this Deed of Trust, with interest thereon, to be immediately due and payable, or Beneficiary may, at its option, pay that amount
or portion of such taxes as renders the Loan or the Obligations unlawful or usurious, in which event Grantor shall concurrently
therewith pay the remaining lawful and non-usurious portion or balance of such taxes.

 

    	
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1.02G. Joint Assessment.
Grantor shall not suffer, permit or initiate the joint assessment of the Premises and the Personal Property, or any other procedure
whereby personal property taxes and real property taxes shall be assessed, levied or charged to the Secured Property as a single
lien.

 

1.02H. Permitted Contests.
Notwithstanding anything herein to the contrary, if, and for so long as, Grantor is not in default pursuant to any of the Loan
Instruments, Grantor shall have the right to contest the amount or the validity, in whole or in part, of any Imposition, by appropriate
proceedings diligently conducted in good faith and without cost or expense to Beneficiary. Subject to the provisions of Section
1.02I and provided Grantor is in compliance with the provisions of the next sentence, Grantor may postpone or defer payment
of such Imposition if Grantor, on or before the due date thereof, shall (1) deposit or cause to be deposited with Beneficiary a
surety bond issued by a surety company of recognized responsibility acceptable to Beneficiary, guaranteeing and securing the payment
in full of such Imposition, pending the determination of such contest, (2) deposit or cause to be deposited with Beneficiary an
amount equal to one hundred (100%) percent of such Imposition or any balance thereof remaining unpaid, and from time to time, but
not more frequently than quarterly, deposit amounts in order to keep on deposit at all such times an amount equal to one hundred
(100%) percent of the Imposition remaining unpaid, or (3) furnish or cause to be furnished to Beneficiary other security reasonably
satisfactory to Beneficiary. If such deposit is made or such security furnished and Grantor continues in good faith to contest
the validity of such Imposition by appropriate legal proceedings which shall operate to prevent the collection of such Imposition
so contested, the imposition of interest, fines or other penalties with respect to such Imposition and the sale of the Secured
Property or any part thereof to satisfy such Imposition, Grantor shall have no obligation to pay such Imposition until such time
as it has been finally determined to be a valid, due and payable Imposition. Upon termination of any such proceeding, or at any
earlier time that Grantor shall have been adjudicated liable for the payment of such Imposition, Grantor shall pay in full the
amount of such Imposition or part thereof as shall have been finally determined in such proceeding, together with all liabilities
in connection therewith. Beneficiary shall have the full power and authority to apply or require the application of any amounts
that may have been deposited pursuant to this Section 1.02H to payment of any unpaid Imposition. However, Beneficiary shall
not have any liability for application of, or failure to apply, any amount so deposited, except for Beneficiary’s intentional
and willful failure to apply a deposited amount after Grantor shall have notified Beneficiary of such final decision and Grantor
or the Person making such deposit shall have requested in writing the application of such amount to the payment of the particular
Imposition with respect to which it was deposited. Beneficiary shall repay to Grantor, or as directed by Grantor, the remainder
of any such deposit after payment in full of the related Imposition, unless Grantor shall be in default pursuant to any of the
Loan Instruments. If a default then exists, Beneficiary may, in its discretion, apply all or any part of such remainder to the
curing of such default. After the curing of all such defaults (and the payment in full of all then due and payable Impositions),
Beneficiary shall pay the remainder of such surplus, if any, to Grantor.

 

1.02I. No Lease
Default. If contesting the validity or amount of any Imposition shall cause a breach of any of the terms, conditions or covenants
required to be performed by Grantor as lessor under any Lease, Grantor shall not have the right to contest the same as provided
in Section 1.02H, and Grantor shall pay such Imposition pursuant to Section 1.02A.

 

    	
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1.03      Insurance.

 

1.03A.All Risk Coverage.

 

(1) Grantor, at its
sole cost and expense, shall keep the Improvements and the Personal Property insured against loss or damage by fire and against
loss or damage by other risks now covered by All Risk" or “Special Perils insurance, in form and substance satisfactory
to Beneficiary. Such All Risk or Special Perils insurance shall cover acts of terrorism (both foreign and domestic) (“Terrorism
Insurance”). If any of the Terrorism Insurance is obtained through a separate insurance policy rather than as part of an
All Risk or Special Perils policy, the requirements set forth herein with respect to All Risk or Special Perils insurance,
nevertheless, shall be deemed to apply to any such insurance provided in a separate policy.

 

(2) The All Risk or
Special Perils insurance shall be in an amount equal to at least one hundred percent (100%) of the full replacement cost of the
Improvements and the Personal Property, including work performed for tenants, without deduction for depreciation. The "All
Risk" or “Special Perils insurance” shall include coverage for law and ordinance, demolition and increased cost
of construction and an agreed amount endorsement for the estimated replacement cost.

 

(3) The All Risk or
Special Perils insurance shall include rent and/or business income interruption insurance coverage, including coverage for rental
loss (a) of not less than twenty-four (24) months of aggregate rentals or (b) Actual Loss Sustained, with no time element restrictions,
and in the case of the coverage described in the preceding clause (a) or clause (b), an Extended Period of Indemnity of not less
than twelve (12) months. The rental loss coverage with respect to each Lease shall include all Rent payable thereunder, including
minimum rent, escalation charges, percentage rent and all other additional rent of every kind and any other amounts payable by
tenants or other occupants, from time to time, at the Secured Property pursuant to Leases or otherwise.

 

1.03B.Additional
Coverage. Grantor, at its sole cost and expense, shall at all times also maintain:

 

(1) Commercial general
liability insurance against claims for bodily injury, personal injury or property damage, occurring in, on, under or about the
Secured Property or in, on, under or about the adjoining streets, sidewalks and passageways; such insurance to be in amounts and
in form and substance satisfactory to Beneficiary;

 

(2) If the Improvements
are located in a flood hazard area, flood insurance on the Improvements and the Personal Property, in an amount equal to one hundred
percent (100%) of the full replacement cost of the Improvements and the Personal Property, including work performed for tenants,
without deduction for depreciation;

 

(3) Insurance, in such
amounts as Beneficiary shall from time to time require, against loss or damage from leakage or explosion of steam boilers, air
conditioning equipment, pressure vessels or similar apparatus, now or hereafter installed in or on the Secured Property; and

 

    	
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(4) Such other insurance
and any replacements, substitutions or additions thereto as shall at any time be required by Beneficiary against other insurable
hazards, including war risk, terrorism, nuclear reaction or radioactive contamination, each in such amount as Beneficiary shall
determine.

 

1.03C.Separate
Insurance. Grantor shall not carry separate insurance, concurrent in kind or form and contributing in the event of loss with
any insurance required hereunder. Grantor may, however, effect for its own account any insurance not required pursuant to the provisions
of this Deed of Trust, but any such insurance effected by Grantor on the Secured Property, whether or not required pursuant to
this Section 1.03, shall be for the mutual benefit of Grantor and Beneficiary, as their respective interests may appear,
and shall be subject to all other provisions of this Section 1.03.

 

1.03D.Insurers;
Policies.

 

(1)      All insurance
provided for in this Section 1.03 shall be effected under valid and enforceable policies issued by financially responsible
insurers, rated by A.M. Best as “A” or better and as having a class size of at least “X(10)” and authorized
to do business in the State, with deductibles acceptable to Beneficiary and otherwise in form and substance acceptable to Beneficiary.
An original copy of all such policies shall be deposited with and held by Beneficiary and shall contain the standard non-contributory
mortgagee clause in favor of Beneficiary and a waiver of subrogation endorsement, all in form and content satisfactory to Beneficiary.
All such policies shall contain a provision that such policies will not be cancelled or materially amended (including any reduction
in the scope or limits of coverage), without at least thirty (30) days' prior written notice to Beneficiary. Not less than fifteen
(15) days prior to the expiration dates of the expiring policies theretofore furnished pursuant to this Section 1.03, originals
of the policies bearing notations evidencing the full payment of the annual premium or accompanied by other evidence satisfactory
to Beneficiary of such payment shall be delivered by Grantor to Beneficiary.

 

(2)      Grantor’s
insurance policies may be part of a blanket insurance policy provided that (a) such blanket policy specifically lists the Secured
Property as covered and includes the per occurrence and aggregate limits (if any) for the Secured Property, which limits must be
acceptable to Beneficiary, (b) Beneficiary receives the documentation reasonably required to determine the adequacy of the shared
blanket limits among the properties insured by the blanket policy, which documentation shall include, a list of the properties
covered by the blanket policy, including the Secured Property, and their respective locations and a statement of insurable values
for all Special Perils, for each of such properties, and (c) the blanket policy includes an endorsement naming Beneficiary, with
respect to any property insurance, as a certificate holder, mortgagee and lender loss payee and with respect to any liability insurance,
as an additional insured.

 

    	
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1.03E.Beneficiary's
Right to Secure Coverage. If Grantor fails to furnish to Beneficiary and keep in force the original policies of insurance required
by this Section 1.03, Beneficiary, at its option, may procure such insurance, which procurement, at Beneficiary's further
option, may be by the purchase of insurance policies or by the addition of the Secured Property to Beneficiary's blanket policy.
In the event that Beneficiary has exercised either of such options, promptly upon demand by Beneficiary, Grantor (i) will reimburse
Beneficiary for all premiums on the policies purchased by Beneficiary or (ii) in the event Beneficiary has added the Secured Property
to its blanket policy, will pay to Beneficiary an amount equal to the estimated cost of the insurance coverage which Beneficiary
has added to its blanket policy had such coverage been obtained under a separate policy and not under a blanket policy, in either
case, with interest thereon at the Increased Rate from the date Beneficiary pays such premiums to the date Grantor repays such
premiums to Beneficiary in full. Until they are so repaid, this Deed of Trust shall secure the amount of such premiums and interest.

 

1.03F.Damage or
Destruction. Upon the occurrence of any damage or casualty to the Secured Property or any part thereof, the following shall
apply:

 

(1)       Grantor shall
give Beneficiary written notice of such damage or casualty as soon as possible, but not later than ten (10) days from the date
such damage or casualty occurs.

 

(2)       All proceeds
of insurance ("Proceeds") paid or to be paid pursuant to any of the policies maintained pursuant to this Deed
of Trust shall be payable to Beneficiary. Grantor hereby authorizes and directs any affected insurer to make payment of the Proceeds
directly to Beneficiary. Beneficiary may commingle, with other monies in Beneficiary's possession, all Proceeds received by Beneficiary.
All such Proceeds shall constitute additional security for the Obligations and Grantor shall not be entitled to the payment of
interest thereon. Beneficiary may settle, adjust or compromise all claims for loss, damage or destruction pursuant to any policy
or policies of insurance; provided, however, that (i) if no Event of Default has occurred which continues beyond any applicable
grace or cure period, (ii) Grantor complies with all other restoration requirements set forth in this Deed of Trust, and (iii)
the proceeds of insurance are less than $200,000.00, then Grantor shall be entitled to settle, adjust or compromise such claim
and such insurance proceeds shall be disbursed directly to Grantor for purposes of application to the restoration instead of being
held by Beneficiary for disbursement, and Grantor covenants and agrees promptly to commence and complete such restoration, and
use such proceeds to pay for such restoration.

 

(3)       Subject to the
terms of Section 1.03H, Beneficiary shall have the option, in its discretion, and without regard to the adequacy of its security
hereunder, of applying all or part of the Proceeds to (a) the Obligations, whether or not then due, in such order as Beneficiary
shall determine, (b) the repair or restoration of the Secured Property, (c) reimburse Beneficiary for its costs and expenses in
connection with the recovery of the Proceeds, or (d) any combination of the foregoing, subject, however, to the limitations on
charging the Make-Whole Amount upon the application of insurance proceeds (and applicable deductible) and condemnation awards as
set forth in the paragraph of the Note which commences with the phrase “Notwithstanding the foregoing, in the event of a
casualty or condemnation . . .”.

 

    	
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(4)       Nothing herein
contained shall be deemed to excuse Grantor from repairing or maintaining the Secured Property as provided in Section 1.05
or restoring all damage or destruction to the Secured Property, regardless of whether there are Proceeds available or whether the
Proceeds are sufficient in amount, and the application or release by Beneficiary of any Proceeds shall not cure or waive any Event
of Default or notice of default pursuant to this Deed of Trust or invalidate any act done pursuant to such notice.

 

1.03G.Transfer
of Interest in Policies. In the event of the foreclosure of this Deed of Trust or other transfer of title or assignment of
the Secured Property in payment and performance, in whole or in part, of the Obligations, all right, title and interest of Grantor
in and to all policies of insurance required by this Section 1.03 shall inure to the benefit of, and pass to the purchaser
or grantee of the Secured Property. If, prior to Beneficiary’s receipt of the Proceeds, the Secured Property shall have been
sold through the foreclosure of this Deed of Trust or other similar proceeding, Beneficiary shall have the right to receive the
Proceeds to the extent that any portion of the Obligations are still unpaid after application of the proceeds of the foreclosure
sale or similar proceeding, together with interest thereon at the Increased Rate, plus attorney’s fees and other costs and
disbursements incurred by Beneficiary in connection with the collection of the Proceeds and in establishing the amount of and collecting
the deficiency. Grantor hereby assigns, transfers and sets over to Beneficiary all of the Grantor's right, title and interest in
and to said sum. The balance, if any, shall be paid to Grantor, or as otherwise required by law.

 

1.03H. Grantor's Use
of Proceeds.

 

(1) Notwithstanding any
provision herein to the contrary, but subject to the provisions of Section 1.03(H)(4), in the event of any destruction to
the Secured Property by fire or other casualty of not more than seventeen (17) apartment units contained in the Improvements, the
Proceeds shall be made available to Grantor for repair and restoration, after deducting therefrom and payment to Beneficiary of
an amount equal to Beneficiary's costs in connection with collection, review and disbursement of the Proceeds of such damage or
casualty, provided that:

 

(a) The Proceeds are
deposited with Beneficiary;

 

(b) No Event of Default
shall have occurred and be continuing under the terms of any of the Loan Instruments;

 

(c) The insurer does
not deny liability to any named insured;

 

(d) Beneficiary is furnished
with, and has approved (i) a complete, final set of plans and specifications for the work to be performed in connection with the
repair or restoration, (ii) an estimate of the cost of repair and restoration, and (iii) a certificate of Beneficiary's Architect
as to such costs;

 

(e)The value, quality
and condition of the Secured Property so repaired or restored shall be at least equal to that of the Secured Property prior to
such damage or casualty;

 

    	
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(f)Grantor furnishes
Beneficiary with evidence reasonably satisfactory to Beneficiary that all Improvements so repaired or restored and their use shall
fully comply with all applicable (i) easements, covenants, conditions, restrictions or other private agreements or instruments
of record affecting the Secured Property and (ii) Legal Requirements;

 

(g)If the estimated
cost of such repair or restoration exceeds the Proceeds available, Grantor shall (i) furnish a bond of completion or provide other
evidence satisfactory to Beneficiary of Grantor's ability to pay such excess costs, or (ii) deposit with Beneficiary additional
funds equal to such excess;

 

(h)Beneficiary shall
have received written notice of damage or casualty from Grantor within ten (10) business days from the date of such damage or casualty,
which notice shall state the date of such damage or casualty, and shall contain a request to Beneficiary to make the Proceeds available
to Grantor;

 

(i)Beneficiary shall
have received a report or proof of claim from the insurer describing the damage or casualty and the insurer’s payment therefor;

 

(j)During and after
the repair and restoration period, the aggregate monthly net income pursuant to rent and/or business income interruption insurance
coverage and/or pursuant to all Leases remaining in full force and effect shall be in an amount sufficient to pay the monthly installments
of principal and interest required to be paid on the Obligations, as well as all payments for taxes and insurance required pursuant
to Section 1.04 and all Secured Property operating expenses, as estimated by Beneficiary; and

 

		(k)	the Debt Coverage Ratio is not less than 1.20x.

 

(2)        Beneficiary
shall disburse the Proceeds during the course of repair or restoration upon (a) the certification of Beneficiary's Architect as
to the cost of the work done, (b) the conformity, as determined by Beneficiary, of the work to plans and specifications approved
by Beneficiary, and (c) receipt of evidence of a title insurance company acceptable to Beneficiary that there are no liens arising
out of the repair or restoration or otherwise. Notwithstanding the above, a portion of the Proceeds may be released prior to the
commencement of repair or restoration to pay for items approved by Beneficiary in its discretion. Subject to satisfaction of the
foregoing conditions, Beneficiary shall make such disbursements within ten (10) business days after a written request by Grantor.
No payment made prior to the final completion of work shall exceed ninety percent (90%) of the value of the work performed from
time to time, and at all times the undisbursed balance of the Proceeds remaining with Beneficiary must be at least sufficient to
pay for the cost of completion of the work (as estimated by Beneficiary in its discretion), free and clear of liens. Beneficiary
shall make final payment after receipt of a certification of Beneficiary's Architect confirming the completion of the work in accordance
with plans and specifications approved by Beneficiary.

 

(3)        At its option,
Beneficiary shall (a) return to Grantor the balance of the Proceeds after full disbursement in accordance with Sections 1.03H(1)
and (2), or (b) apply such balance to the Obligations, whether or not then due, in such order as Beneficiary shall determine,
subject, however, to the limitations on charging the Make-Whole Amount upon the application of insurance proceeds (and applicable
deductible) and condemnation awards as set forth in the paragraph of the Note which commences with the phrase “Notwithstanding
the foregoing, in the event of a casualty or condemnation . . .”.

 

    	
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(4)        In all cases
in which any destruction of the Secured Property by fire or other casualty occurs during the last twelve (12) months prior to the
Maturity Date, or in Beneficiary's judgment, Grantor is not proceeding with the repair or restoration in a manner that would entitle
Grantor to have the Proceeds disbursed to it, or for any other reason Beneficiary determines in its judgment that Grantor shall
not be entitled to the Proceeds pursuant to the terms of this Deed of Trust, Beneficiary shall have the options set forth in Section
1.03 F(3).

 

(5)       Under no circumstances
shall Beneficiary become personally liable for the fulfillment of the terms, covenants and conditions contained in any of the Leases
or obligated to take any action to repair or restore the Secured Property.

 

1.04       Escrow Payments.
To further secure the Obligations as to payment of the Impositions (as set forth in Section 1.02) and premiums for insurance
(as set forth in Section 1.03), Grantor will pay to Beneficiary, or its designee, on the due date of each monthly installment
of principal and/or interest pursuant to the Note, a sum equal to the Impositions and insurance premiums next due on the Secured
Property, all as estimated by Beneficiary, less all sums already paid with respect to the Impositions and insurance premiums for
such period, divided by the number of months to elapse before one month prior to the date when such Impositions and insurance premiums
shall become due and payable. Beneficiary or its designee shall hold all payments without any obligation for the payment of interest
thereon to Grantor and free of all liens or claims on the part of creditors of Grantor and as a part of the Secured Property. Beneficiary
or its designee shall use such payments to pay current Impositions and insurance premiums, as the same accrue and are payable.
Such payments shall not be, nor be deemed to be, trust funds, but may be commingled with the general funds of Beneficiary, or its
designee. If at any time and for any reason Beneficiary determines that such payments are insufficient to pay the Impositions and
insurance premiums in full as they become payable, Grantor will pay to Beneficiary or its designee, within ten (10) days after
demand therefor, such additional sum or sums as may be required in order for Beneficiary or its designee to so pay such Impositions
and insurance premiums in full. Grantor shall furnish Beneficiary with the bills therefor within sufficient time to enable Beneficiary
or its designee to pay the Impositions and insurance premiums before any penalty attaches and before any policy lapses. Upon any
default in the provisions of any Loan Instrument, Beneficiary may, at its discretion and without regard to the adequacy of its
security hereunder, apply any unused portion of such payments to the payment of the Obligations in such manner as it may elect.
Transfer of legal title to the Secured Property shall automatically transfer to the new owner any then remaining rights of Grantor
in all sums held by Beneficiary pursuant to this Section 1.04.

 

1.05       Care and
Use of the Premises.

 

1.05A.Maintenance
and Repairs. Grantor, at its sole cost and expense, shall (1) take good care of the Secured Property and the sidewalks and
curbs adjoining the Secured Property and keep the same in good order and condition, (2) make all necessary repairs thereto, interior
and exterior, structural and nonstructural, ordinary and extraordinary, foreseen and unforeseen, (3) not commit or suffer to be
committed any waste of the Secured Property, and (4) not do or suffer to be done anything which will increase the risk of fire
or other hazard to the Secured Property or any part thereof.

 

    	
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1.05B. Standard
of Repairs. The necessity for and adequacy of repairs to the Secured Property pursuant to Section 1.05A shall be measured
by the standard which is appropriate for a first class apartment complex and related facilities of similar construction and type
located in the Wake Forest, North Carolina area. Further, Grantor shall make all repairs necessary to avoid any structural damage
to the Improvements and to keep the Secured Property in a proper condition for its intended use. When used in this Section 1.05,
the terms "repair" and "repairs" shall include all necessary renewals and replacements. Grantor shall make
all repairs with new, first-class materials and in a good, substantial and workerlike manner which shall be equal or better in
quality and class to the original work.

 

1.05C. Removal
of Equipment. Grantor shall have the right, at any time and from time to time, to remove and dispose of equipment which may
have become obsolete or unfit for use or which is no longer useful in the operation of the Secured Property. Grantor will promptly
replace all equipment so disposed of or removed with other equipment of a value and serviceability equal to or greater than the
original value and serviceability of the equipment so removed or disposed of, free of all liens, claims or other encumbrances.
If by reason of technological or other developments in the operation and maintenance of buildings of the general character of the
Improvements, no replacement of the building equipment so removed or disposed of is necessary or desirable in the proper operation
or maintenance of the Improvements, Grantor shall not be required to replace same. The security interest of this Deed of Trust
shall cover all such replacement equipment.

 

1.05D.Compliance
With Laws and Insurance. Grantor shall promptly comply with any and all applicable Legal Requirements including maintaining
the Secured Property in compliance with all Legal Requirements. Grantor shall not bring or keep any article upon the Secured Property
or cause or permit any condition to exist thereon which would be prohibited by or could invalidate any insurance coverage maintained,
or required hereunder to be maintained, by Grantor on or with respect to any part of the Secured Property. Grantor shall do all
other acts, which from the character or use of the Secured Property may be necessary to protect the Secured Property. Upon request
of Beneficiary, Grantor shall furnish to Beneficiary a copy of any license, permit or approval required by any Governmental Agency
with respect to the Secured Property and/or the operations conducted thereon.

 

1.05E.   Hazardous
Materials.

 

(1)                 Grantor hereby
unconditionally and irrevocably agrees to indemnify, reimburse, defend, exonerate, pay and hold harmless Beneficiary, and its directors,
officers, policyholders, shareholders, employees, successors (including any successor to Beneficiary’s interest in the chain
of title), assigns, agents, attorneys, contractors, subcontractors, experts, licensees, visitors, affiliates, lessees, mortgagees,
trustees and invitees, from and against any and all of the following (referred to collectively as the “Indemnified Claims”):
all Environmental Damages and Environmental Claims that may be incurred by, imposed upon, or asserted against, any Person indemnified
hereunder, arising out of, related to, or in connection with:

 

    	
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(a)        the presence of
Hazardous Materials in, on, under or about or the Release or threatened Release of any Hazardous Materials to or from (i) the Secured
Property or (ii) any other property legally or beneficially owned (or any interest or estate which is owned) by Grantor, regardless
of whether or not the presence of such Hazardous Materials arose prior to the present ownership or operation of the property in
question or as a result of the acts or omissions of Grantor or any other Person,

 

(b)        the violation or
alleged violation of any Environmental Requirement affecting or applicable to the SecuredProperty or any activities thereon,
regardless of whether or not the violation of such Environmental Requirement arose prior to the present ownership or operation
of the property in question or as a result of the acts or omissions of Grantor or any other Person,

 

(c)        the breach of any
warranty or covenant or the inaccuracy of any representation contained in the Loan Instruments pertaining to Hazardous Materials
or other environmental matters, including the covenants contained in Sections 1.05E(2), (3), (4) and (5) and the representations
and warranties contained in Sections 1.05E(4) and 2.03C and D,

 

(d)        the transport,
treatment, recycling, storage or disposal or arrangement therefor, of any Hazardous Material to, at or from the Secured Property,
or

 

(e)         the enforcement
or attempted enforcement of this indemnity.

 

Grantor’s obligations pursuant to
the foregoing indemnity shall include the burden and expense of (x) defending against all Indemnified Claims, even if such Indemnified
Claims are groundless, false or fraudulent, (y) conducting all negotiations of any description with respect to the Indemnified
Claims, and (z) paying and discharging any and all Indemnified Claims, when and as the same become due, against or from Beneficiary
or any other Person indemnified pursuant to this Section 1.05E(1). Grantor’s obligations under this Section 1.05E(1)
shall survive (i) the repayment of all sums due under the Note; (ii) the release of the Secured Property or any portion thereof
from the lien of this Deed of Trust; (iii) the reconveyance of or foreclosure under this Deed of Trust (notwithstanding that all
or a portion of the obligations secured by this Deed of Trust shall have been discharged thereby); (iv) the acquisition of the
Secured Property by Beneficiary; and/or (v) the transfer of all of Beneficiary’s rights in and to the Note and/or the Secured
Property.

 

(2) Grantor shall
maintain the Secured Property in compliance with, and shall not cause or permit the Secured Property to be in violation of, any
applicable Environmental Requirements. Grantor shall not, and shall not permit any lessee or occupant of the Secured Property to,
use, generate, manufacture, store, maintain, dispose of or permit to exist in, on, under or about the Secured Property any Hazardous
Materials, except for the use, storage and disposal (such use, storage and disposal to be in all cases in accordance with all applicable
Legal Requirements) of de minimis amounts of janitorial and cleaning supplies and other Hazardous Materials typically used in (A)
the ordinary course of operating and maintaining a first class apartment complex and/or (B) the ordinary course of tenants’
use of the Secured Property for residential purposes. Grantor shall, at all times, comply fully and in a timely manner, and cause
all of its employees, agents, contractors and subcontractors and any other Persons occupying or present on the Secured Property
to so comply, with all applicable Environmental Requirements.

 

    	
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(3)Promptly, upon
the written request of Beneficiary, but not more frequently than once per year, Grantor shall provide Beneficiary, at Grantor's
expense, with an environmental site assessment or environmental audit report prepared by an environmental engineering firm acceptable
to Beneficiary and in a form acceptable to Beneficiary, assessing the presence or absence of any Hazardous Materials and the potential
costs in connection with the abatement, cleanup or removal of any Hazardous Materials found in, on, under or about the Secured
Property. Grantor shall cooperate in the conduct of such site assessment or environmental audit.

 

(4) Grantor represents
and warrants that, except as may be described in that certain Phase I Environmental Site Assessment Report prepared by SES Environmental,
Inc., Project #133856, dated January 3, 2014 (the “Environmental Report”), (a) no enforcement, cleanup, removal or
other governmental or regulatory action has, at any time, been instituted, contemplated or threatened against Grantor, or to its
best knowledge, the Secured Property, pursuant to any Environmental Requirements; (b) to the best of its knowledge, no violation
or noncompliance with any Environmental Requirements has occurred with respect to the Secured Property at any time; (c) to the
best of its knowledge, no claims have, at any time, been made or threatened by any third party against the Secured Property or
against Grantor with respect to the Secured Property, relating to damage, contribution, cost recovery, compensation, loss or injury
resulting from any Hazardous Materials (the matters set forth in this Section 1.05E(4) (a), (b) and (c) are herein referred
to as "Hazardous Materials Claims"). Grantor shall promptly advise Beneficiary, in writing, if any Hazardous Materials
Claims are hereafter asserted, or if Grantor obtains knowledge of any Release of any Hazardous Materials in, on, under or about
the Secured Property.

 

(5) Without Beneficiary's
prior written consent, Grantor shall not (a) take any remedial action in response to the presence of any Hazardous Materials in,
on, under or about the Secured Property, or (b) enter into any settlement agreement, consent decree or other compromise in respect
of any such Hazardous Materials or any Hazardous Material Claims. However, Beneficiary's prior consent shall not be necessary in
the event that the presence of any Hazardous Materials in, on, under or about the Secured Property either poses an immediate threat
to the health, safety or welfare of any individual or is of such a nature that an immediate remedial response is necessary and
it is not possible to obtain Beneficiary's consent before taking such action. In such event, Grantor shall notify Beneficiary as
soon as practical of any action so taken. Beneficiary shall not withhold its consent, where such consent is required hereunder,
if either (a) a particular remedial action is ordered by a court of competent jurisdiction, or (b) Grantor establishes to the satisfaction
of Beneficiary that there is no reasonable alternative to such remedial action which would result in less impairment to the Secured
Property, or (c) Grantor establishes to the reasonable satisfaction of Beneficiary that such remedial action is required by Environmental
Requirements.

 

    	
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(6) Beneficiary, if
it so elects, shall have the right to join and participate as a party in any legal proceedings or actions initiated by any Person
in connection with any Hazardous Materials Claim and, in such case, Grantor shall pay all of Beneficiary's attorneys' fees and
expenses incurred in connection therewith.

 

1.05F.Compliance
With Instruments of Record. Grantor shall promptly perform and observe, or cause to be performed and observed, all terms, covenants
and conditions of all instruments of record affecting the Secured Property, non-compliance with which may affect the priority of
the lien of this Deed of Trust, or which may impose any duty or obligation upon Grantor or any lessee or other occupant of the
Secured Property or any part thereof. Grantor shall do or cause to be done all things necessary to preserve intact and unimpaired
all easements, appurtenances and other interests and rights in favor, or constituting any part, of the Secured Property.

 

1.05G. Alteration
of Secured Property. Grantor shall not demolish, remove, construct, restore, add to or alter any portion of the Secured Property
or any extension thereof, or consent to or permit any such demolition, removal, construction, restoration, addition or alteration
in an amount greater than $100,000.00 in any calendar year, without Beneficiary’s prior written consent, except for (1) initial
tenant improvement work provided for in any Lease in effect on the date hereof and in any other Lease approved by Beneficiary in
writing, and (2) ordinary, non-structural maintenance work.

 

1.05H.Parking.
Grantor shall comply with all Legal Requirements for parking and shall grant no parking rights in the Secured Property other than
those provided for in existing Leases or in Leases for residential apartment use entered into after the date hereof as permitted
by the Loan Instruments, except with Beneficiary's prior written consent, not to be unreasonably withheld. The Secured Property
shall contain at all times not less than the greater of (i) the number of parking spaces required to comply with all covenants,
restrictions, easements, Leases and other applicable agreements affecting the Secured Property or (ii) the number of parking spaces
required to comply with all Legal Requirements. If any part of the automobile parking areas included within the Secured Property
is taken by condemnation or such areas are otherwise reduced, Grantor shall provide parking facilities in kind, size and location
as required to comply with all Leases and with the parking requirements set forth herein and all applicable Legal Requirements.
Any lease or other contract for such additional parking facilities, if required, must be assignable and must be otherwise in form
and substance satisfactory to Beneficiary. Before entering into any such lease or other contract for additional parking, Grantor
will furnish to Beneficiary satisfactory assurance of the completion of such facilities free of all liens and in conformity with
all Legal Requirements.

 

1.05I.Entry on
Secured Property. Beneficiary or its representatives may enter upon and inspect the Secured Property at all reasonable times;
provided that as long as no Event of Default or emergency then exists, any such inspection shall only occur after reasonable notice
has been given to Grantor (which notice may be given by telephone or email).

 

1.05J.No Consent
to Alterations or Repairs. Nothing contained in this Deed of Trust shall in any way constitute the consent or request of Beneficiary,
expressed or implied, by inference or otherwise, to any contractor, subcontractor, laborer or materialman for the performance of
any labor or the furnishing of any materials for any specific improvement, alteration or repair of the Secured Property or any
part thereof.

 

    	
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1.05K.Preservation
of Lien; Mechanic's Liens. Grantor shall do or cause to be done everything necessary so that the lien of this Deed of Trust
shall be fully preserved, at the sole cost of Grantor. Grantor shall discharge, pay or bond, or cause to be discharged, paid or
bonded, from time to time when the same shall become due, all lawful claims and demands of mechanics, materialmen, laborers and
others which, if unpaid, might result in, or permit the creation of, a lien on the Secured Property or any part thereof, or on
the revenues, rents, issues, income or profits arising therefrom.

 

1.05L.Use of Secured
Property by Grantor. Grantor shall use, or cause to be used, the Secured Property principally and continuously as and for a
first-class apartment complex. Grantor shall not use, or permit the use of, the Secured Property or any part thereof, for any other
principal use without the prior written consent of Beneficiary. Grantor shall not initiate or acquiesce to any change in any zoning
or other land use classification now or hereafter in effect and affecting the Secured Property or any part thereof without in each
case obtaining Beneficiary’s prior written consent thereto.

 

1.05M.Use of Secured
Property by Public. Grantor shall not suffer or permit the Secured Property, or any part thereof, to be used by the public
as such, without restriction or in such manner as might impair Grantor's title to the Secured Property or any part thereof, or
in such manner as might make possible a claim or claims of adverse usage or adverse possession, or of any implied dedication to
the public of the Secured Property or any part thereof.

 

1.05N.Management.
Management of the Premises shall be satisfactory to Beneficiary and shall be performed by Grantor or a management company approved
in writing by Beneficiary and under a management contract satisfactory to Beneficiary, which management contract shall be subject
and subordinate to the rights and title of Beneficiary under this instrument.

 

1.05O.Permitted
Contests. If, and for so long as, Grantor is not in default pursuant to any of the Loan Instruments, Grantor shall have the
right, after prior notice to Beneficiary, to contest, by appropriate legal proceedings, diligently conducted in good faith and
without cost or expense to Beneficiary, the validity or application of any Legal Requirement, subject to the following:

 

(1) Such contest shall
not subject Beneficiary or Grantor to any civil or criminal liability;

 

(2) By the terms of
any such Legal Requirement, compliance therewith pending the prosecution of any such legal proceedings may legally be delayed without
incurring (or increasing the risk of incurring) any damage or injury of any kind to the Secured Property or any Person or property
and without incurring any lien or charge of any kind against the Secured Property or any fine or penalty against Grantor, Grantor
may delay compliance therewith until the final determination of such legal proceedings; and

 

    	
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(3) Such contest shall
not cause a breach of any of the terms, conditions or covenants of any Lease or other agreement on Grantor’s part to be performed.

 

1.06      Financial
Information.

 

1.06A.Financial
Statements. Grantor shall keep and maintain complete and accurate books and records of the earnings and expenses of the Secured
Property. Grantor shall furnish to Beneficiary, at its own expense, within one hundred twenty (120) days after the end of each
fiscal year of Grantor and within thirty (30) days after the end of each fiscal quarter of Grantor, including the fiscal year during
which the Loan is closed, annual or quarterly audited financial statements, as applicable, prepared and certified by an independent
certified public accountant reasonably satisfactory to Beneficiary, in accordance with generally accepted accounting principles
relating to real estate consistently applied. Notwithstanding the foregoing, if Grantor is not then in default of any of the Obligations,
the quarterly financial statements may be prepared and certified by any officer or other authorized party of Grantor. The annual
and quarterly financial statements required hereunder shall include with respect to the Secured Property: (1) a balance sheet,
(2) a statement of cash flows, (3) a detailed summary of operations, including, all rents and other income derived from and all
operating and capital expenses paid or incurred in connection with the Secured Property and (4) a certified rent roll and other
pertinent information regarding the leasing as may be reasonably required by Beneficiary. In addition to such annual financial
statements, Grantor shall furnish to Beneficiary such interim statements of financial position and cash flows and such interim
summaries of operations and interim rent rolls, including any of the information described in the foregoing clauses (1) through
(4), as Beneficiary shall require. As to any Guarantor, and without any expense to Beneficiary, Grantor shall furnish, or cause
to be furnished, to Beneficiary, within one hundred twenty (120) days after the end of each fiscal year of each Guarantor and within
thirty (30) days after the end of each fiscal quarter of each Guarantor, if any, including the fiscal year during which the Loan
is closed, annual or quarterly audited financial statements, (as applicable), for each Guarantor, prepared and certified by an
independent, certified public accountant, reasonably satisfactory to Beneficiary, in accordance with generally accepted accounting
principles, consistently applied. Notwithstanding the foregoing, if Grantor is not then in default of any of the Obligations, the
quarterly financial statements may be prepared and certified by any officer or other authorized party of Guarantor. The annual
and quarterly financial statements required hereunder shall include a balance sheet, a statement of cash flows and a statement
of profit and loss. Within forty-five (45) days after the end of each fiscal quarter of Grantor, Grantor shall also deliver the
certifications required by Section 5.20 of this Deed of Trust. 

 

1.06B.Right to
Inspect Books and Records. Beneficiary or its representatives shall have the right to examine and make copies of all books
and records and all supporting vouchers and data related to the Secured Property at reasonable times upon reasonable written notice
to Grantor. Such examination may occur at the Secured Property or at Grantor's principal place of business and shall be at Grantor's
sole cost and expense at reasonable times upon reasonable written notice to Grantor.

 

    	
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1.07      Condemnation.

 

1.07A. Beneficiary's
Right to Participate in Proceedings. If the Secured Property, or any part thereof, shall be taken in condemnation proceedings
or by exercise of any right of eminent domain (collectively, "Condemnation Proceedings"), Beneficiary shall have
the right to participate in any such Condemnation Proceedings and all awards or payments (collectively, "Award")
that may be made in any such Condemnation Proceedings are hereby assigned to Beneficiary, and shall be deposited with Beneficiary
and applied in the manner set forth in this Section 1.07. Grantor shall give Beneficiary immediate notice of the actual
or threatened (in writing) commencement of any Condemnation Proceedings affecting all or any part of the Secured Property, including
all such Condemnation Proceedings as to severance and consequential damage and change in grade in streets, and will deliver to
Beneficiary copies of any and all papers served or received in connection with any Condemnation Proceedings. Notwithstanding the
foregoing, Beneficiary is hereby authorized, at its option, to commence, appear in and prosecute in its own or Grantor's name any
action or proceeding relating to any Condemnation Proceedings and to settle or compromise any claim in connection therewith. No
settlement for the damages sustained in connection with any Condemnation Proceedings shall be made by Grantor without Beneficiary's
prior written approval, not to be unreasonably withheld. Grantor shall execute any and all further documents that may be required
in order to facilitate the collection of each Award.

 

1.07B.Application
of Condemnation Award. (1) If at any time title or temporary possession of the whole or any part of the Secured Property shall
be taken in any Condemnation Proceeding or pursuant to any agreement among Grantor, Beneficiary and/or those authorized to exercise
the right of condemnation, Beneficiary, in its discretion and without regard to the adequacy of its security hereunder, shall have
the right to apply any Award received to payment of the Obligations whether or not due, in such order as Beneficiary shall determine,
subject, however, to the limitations on charging the Make-Whole Amount upon the application of insurance proceeds and condemnation
awards as set forth in the paragraph of the Note which commences with the phrase “Notwithstanding the foregoing, in the event
of a casualty or condemnation . . .”. If all or substantially all of the Secured Property is taken and the amount of the
Award received by Beneficiary is not sufficient to pay the then unpaid balance of the Obligations, the balance of the Obligations
shall, at the option of Beneficiary, become immediately due and payable and Grantor shall, within ten (10) days after written notice
to Grantor that Beneficiary has so applied the Award, pay the difference between such balance and the amount of the Award. "Substantially
all of the Secured Property" shall be deemed to have been taken if the balance of the Secured Property, in the reasonable
opinion of Beneficiary,(a) cannot be restored to a self-contained and architecturally complete unit or units or (b) the balance
of the Secured Property as restored will not be economically viable and capable of supporting all carrying charges and operating
and maintenance expenses.

 

    	
WCSR 31792892	25	Deed of Trust
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(2) Notwithstanding any
provision contained herein to the contrary, but subject to the provisions of Section 1.07B(3), if less than Substantially All of
the Secured Property shall be taken in a Condemnation Proceeding (except for a taking (a) of more than seventeen (17) apartment
units contained in the Improvements, (b) of an amount of parking spaces which would cause the Secured Property to be in violation
of zoning or other applicable law or Legal Requirements or to be in violation of any covenants, restrictions, easements, Leases
and other applicable agreements affecting the Secured Property, and/or (c) that affects access to the Premises or any part thereof
from a public right of way), Beneficiary shall, after deducting Beneficiary's costs in connection with collection, review and disbursement
related to the Award and the Condemnation Proceeding, apply the balance of the Award to the cost of restoring, repairing or altering
the remaining portion of the Secured Property, subject to the provisions of Section 1.03(H) (which provisions shall apply
in all respects except that any reference therein to Proceeds shall be deemed to refer to the Award), and Grantor will promptly
restore, repair or alter the remaining Secured Property, subject to the provisions of Section 1.03(H). The provisions of
this Section 1.07(B)(2) shall not apply unless Grantor shall furnish to Beneficiary evidence satisfactory to Beneficiary
that the Secured Property, as so restored, reconstructed or altered, and its use would fully comply with all Legal Requirements.
The balance of the Award so deposited with Beneficiary, after disbursement in accordance with this Section 1.07(B)(2), shall
be applied to the payment of the Obligations, whether or not due, in such order as Beneficiary shall determine, subject, however,
to the limitations on charging the Make-Whole Amount upon the application of insurance proceeds (and applicable deductible) and
condemnation awards as set forth in the paragraph of the Note which commences with the phrase “Notwithstanding the foregoing,
in the event of a casualty or condemnation . . .”. The Award and other sums deposited with Beneficiary, until disbursed or
applied as provided in this Section 1.07)B)(2), may be commingled with the general funds of Beneficiary, shall constitute
additional security for the Obligations, and shall not bear interest.

 

(3) In all cases in which
any taking occurs during the last twelve (12) months prior to the Maturity Date, or in Beneficiary's judgment, Grantor is not proceeding
with the repair or restoration in a manner that would entitle Grantor to have the Award disbursed to it, or for any other reason
Beneficiary determines, in its judgment, that Grantor shall not be entitled to the Award pursuant to the terms of this Deed of
Trust, Beneficiary, without regard to the adequacy of its security hereunder, shall have the right to apply the Award to payment
of the Obligations, whether or not due, in such order as Beneficiary shall determine, subject, however, to the limitations on charging
the Make-Whole Amount upon the application of insurance proceeds (and applicable deductible) and condemnation awards as set forth
in the paragraph of the Note which commences with the phrase “Notwithstanding the foregoing, in the event of a casualty or
condemnation . . .”.

 

1.07C.Reimbursement
of Costs. In the case of any taking covered by the provisions of this Section 1.07, Beneficiary (to the extent that
Beneficiary has not been reimbursed therefor by Grantor) shall be entitled, as a first priority, to reimbursement out of any Award
for all reasonable costs, fees, and expenses incurred in the determination and collection of the Award.

 

1.07D.Existing
Obligations. Notwithstanding any taking by Condemnation Proceedings or any application of the Award to the Obligations, Grantor
shall continue to pay the monthly installments due pursuant to the Note, as well as all other sums secured by this Deed of Trust.
If prior to Beneficiary's receipt of the Award, the Secured Property shall have been sold through foreclosure of this Deed of Trust
or other similar proceeding, Beneficiary shall have the right to receive the Award to the extent that any portion of the Obligations
are still unpaid after application of the proceeds of the foreclosure sale or similar proceeding, with interest thereon at the
Increased Rate, plus attorneys' fees and other costs and disbursements incurred by Beneficiary in connection with the collection
of the Award and in establishing the amount of, and collecting, any deficiency. The application of the Award to the Obligations,
whether or not then due or payable, shall not postpone, abate or reduce any of the periodic installments of interest or principal
thereafter to become due pursuant to the Note or this Deed of Trust until the Obligations are paid and performed in full.

 

    	
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1.08       Leases.

 

1.08A.Performance
of Lessor's Covenants. Grantor, as lessor, has entered and will enter into leases or licenses with tenants, as lessees or licensees,
respectively, for parts or all of the Secured Property (all such leases and licenses are hereinafter referred to individually as
a "Lease" and collectively as "Leases" and the lessees or licensees under such Leases are hereinafter
referred to individually as a "Lessee" and collectively as "Lessees"). Grantor shall faithfully
perform the lessor's material covenants under the Leases. Grantor shall neither do, nor neglect to do, nor permit to be done (other
than enforcing the terms of such Leases and exercising the lessor's remedies thereunder following a default or event of default
on the part of any Lessee in the performance of its obligations pursuant to the Lease or except as provided for in the Assignment),
anything which may cause the modification or termination of any of the Leases, or of the obligations of any Lessee or any other
person claiming through such Lessee, or which may diminish or impair the value of any Lease or the rents provided for therein,
or the interest of the lessor or of Beneficiary therein or thereunder. Each Lease shall make provision for the attornment of the
Lessee thereunder to any person succeeding to the interest of Grantor as the result of any judicial or nonjudicial foreclosure
or transfer in lieu of foreclosure hereunder, such provision to be in form and substance approved by Beneficiary, provided that
nothing herein shall be construed to require Beneficiary to agree to recognize the rights of any Lessee under any Lease following
any such foreclosure or transfer in lieu thereof unless Beneficiary shall expressly hereafter agree thereto in writing with respect
to a particular Lease.

 

1.08B.Notice of
Default. Grantor shall give Beneficiary immediate notice of any notice of a material default or of any Event of Default, extension,
renewal, expansion, surrender or cancellation given to or received from any Lessee or from any other Person with respect to any
Lease and shall furnish Beneficiary with a copy of each such notice.

 

1.08C.Representations
Regarding Leases. Grantor represents and warrants that (1) to the best of Grantor’s knowledge after due inquiry, all
representations made by it in the Leases are true; (2) to the best of Grantor’s knowledge after due inquiry, all Improvements
and the leased space demised and let pursuant to each Lease have been completed to the satisfaction of the applicable Lessee; (3)
each Lessee is in possession of its leased space and has commenced payment of Rent under its Lease except as disclosed to Beneficiary
in writing in the Rent Roll or Rent Roll Certification; (4) all Rents and other charges due and payable under the Leases have been
paid except as disclosed to Beneficiary in writing in the Rent Roll or Rent Roll Certification; (5) no Rent has been prepaid, except
as expressly provided pursuant to the applicable Lease; (6) there is no existing default or breach of any covenant or condition
on the part of any Lessee or lessor under any Lease except as disclosed to Beneficiary in writing in the Rent Roll or Rent Roll
Certification; (7) there are no options to purchase all or any portion of the Secured Property contained in any Lease; (8) there
are no options to renew, cancel, extend or expand by any Lessee except as stated in the Leases;(9) there are no amendments of or
modifications to any Leases except as disclosed in writing to Beneficiary; (10) Grantor is the absolute owner of each Lease with
full right and title to assign the same and the Rents thereunder to Beneficiary; (11) to the best of Grantor’s knowledge
after due inquiry, each Lease is valid and in full force and effect; (12) except as provided in the Assignment, there is no outstanding
assignment or pledge thereof or of the Rents due or to become due; (13) to the best of Grantor’s knowledge after due inquiry,
no Lessee has any defense, set-off or counterclaim against Grantor; (14) no Rents payable pursuant to any Lease have been or will
be anticipated, discounted, released, waived, compromised or otherwise discharged, except as may be expressly permitted by such
Lease; and (15) all Leases are subject and subordinate to this Deed of Trust. 

 

    	
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1.08D.Covenants
Regarding Leases. Grantor shall not, without the prior written consent of Beneficiary obtained in each instance:

 

(1)      lease to any Person,
all or any part of the space in, on or over any of the Premises; except Leases for actual occupancy by the Lessee made in the ordinary
course of the business of owning and operating a first-class apartment project in a prudent manner, on Grantor’s standard
lease form, approved by Beneficiary, without material deviation therefrom;

 

(2)      cancel, terminate
or accept a surrender or suffer or permit any cancellation, termination or surrender of any Lease or any guaranty of any Lease
except, with respect to any Lease, in the ordinary course of business of owning and operating a first class apartment project in
a prudent manner;

 

(3)      modify any Lease
so as to (i) reduce the term thereof or the Rents payable thereunder, (ii) change any renewal provision contained therein, (iii)
otherwise increase any obligation of Grantor thereunder, or (iv) reduce any obligation of Lessee thereunder except, with respect
to any Lease, in the ordinary course of business of owning and operating a first class apartment project in a prudent manner;

 

(4)      commence any summary
proceeding or other action to recover possession of any space demised pursuant to any Lease, other than a proceeding brought in
good faith by reason of a default of any Lessee;

 

(5)      receive or collect,
or permit the receipt or collection of, any Rents for more than one month in advance of the payment due dates plus a one-month
security deposit;

 

(6)      take any other
action with respect to any Lease which would tend to impair the security of Beneficiary pursuant to this Deed of Trust;

 

(7)      extend any present
Lease other than in accordance with the terms presently provided for therein; except leases for actual occupancy by the Lessee
made in the ordinary course of business of owning and operating a first-class apartment project in a prudent manner;

 

(8)      execute any agreement
or instrument or create or permit a lien which may be or become superior to any Lease;

 

    	
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(9)      suffer or permit
to occur any release of liability of any Lessee or the accrual of any right in any Lessee to withhold payment of any Rent except,
with respect to any Lease, in the ordinary course of business of owning and operating a first class apartment project in a prudent
manner;

 

(10)    sell, assign,
transfer, mortgage, pledge or otherwise dispose of or encumber, whether by merger, consolidation, operation of law or otherwise,
any Lease or any Rents;

 

(11)    alter, modify
or change the terms of any guaranty of any Lease or consent to the release of any party thereto except, with respect to any Lease,
in the ordinary course of business of owning and operating a first class apartment project in a prudent manner; or

 

(12)    request, consent,
agree to, or accept, the subordination of any Lease to any mortgage (other than this Deed of Trust) or other encumbrance now or
hereafter affecting the Premises.

 

1.08E.Application
of Rents. Grantor shall use and apply all Rents from the Secured Property first to the payment and performance of the Obligations
in accordance with the terms of the Loan Instruments as they become due (but subject to the last sentence of this Section), and
then to the payment of all Impositions and the costs and expenses of management, operation, repair, maintenance, preservation,
reconstruction and restoration of the Secured Property in accordance with the requirements of this Deed of Trust and the obligations
of Grantor as the lessor under any Lease. Grantor shall not use any Rents for purposes unrelated to the Secured Property unless
and until all current payments of the Obligations, Impositions and such costs and expenses have been paid or provided for and adequate
cash reserves have been set aside to ensure the timely future payment of all such items.

 

1.08F.Indemnity
Against Unapproved Lease Modifications and Amendment. In the event that Beneficiary or any grantee or assignee of Beneficiary
takes title to, or otherwise comes into possession of, the Secured Property and thereafter a Lessee under a Lease attorns to Beneficiary
or such other party pursuant to a Subordination, Non-Disturbance and Attornment Agreement entered into by Beneficiary and such
Lessee, Grantor hereby indemnifies and holds Beneficiary harmless from and against any and all claims, liabilities, costs and expenses
of any kind or nature against or incurred by Beneficiary arising out of the enforcement by any Lessee against Beneficiary or any
grantee or assignee of Beneficiary, of any affirmative claim, cost or expense, or any defense, abatement or right of set off under
any modification or amendment to a Lease which is binding upon Beneficiary and which was entered into by Grantor after the date
of this Deed of Trust in violation of the requirements of subsection 1.08D hereof

 

    	
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		1.09	Assignment of Leases, Rents, Income, Profits and Cash Collateral.

 

1.09A. Assignment;
Discharge of Obligations. Grantor hereby unconditionally, absolutely and presently bargains, sells, grants, assigns, releases
and sets over unto Beneficiary and Trustee (1) all Leases and all other tenancies, occupancies, subleases, franchises and concessions
of the Land or Improvements or which in any way affect the use or occupancy of all or any part of the Land or Improvements, and
any other agreements affecting the use and occupancy of all or any part of the Land or Improvements, in each case, whether now
or hereafter existing, and all right, title and interest of Grantor thereunder, including all rights to all security or other deposits,
(2) all guarantees of the obligations of any lessee, licensee or other similar party under any of the foregoing, whether now or
hereafter existing, and (3) the Rents, regardless of whether the Rents accrue before or after foreclosure or during the full period
of redemption. For the aforesaid purpose, Grantor does hereby irrevocably constitute and appoint Beneficiary its attorney-in-fact,
in its name, to receive and collect all Rents, as the same accrue, and, out of the amount so collected, Beneficiary, its successors
and assigns, are hereby authorized (but not obligated) to pay and discharge the Obligations (including any accelerated Obligations)
in such order as Beneficiary may determine and whether due or not, and to pay the remainder, if any, to Grantor, or as otherwise
required by law. Neither this assignment nor any such action shall constitute Beneficiary as a "mortgagee in possession"
or otherwise make Beneficiary responsible or liable in any manner with respect to the Secured Property or the use, occupancy, enjoyment
or operation of all or any portion thereof, unless and until Beneficiary, in person or by agent, assumes actual possession thereof.
Nor shall appointment of a receiver for the Secured Property by any court at the request of Beneficiary or by agreement with Grantor,
or the entering into possession of the Secured Property or any part thereof by such receiver, be deemed to make Beneficiary a mortgagee-in-possession
or otherwise responsible or liable in any manner with respect to the Secured Property or the use, occupancy, enjoyment or operation
of all or any portion thereof. The assignment of all Leases and Rents in this Section 1.09 is intended to be an absolute,
unconditional and present assignment from Grantor to Beneficiary and not merely the passing of a security interest. Grantor shall,
at any time or from time to time, upon request of Beneficiary, execute and deliver any instrument as may be requested by Beneficiary
to further evidence the assignment and transfer to Beneficiary of Grantor's interest in any Lease or Rents. Nothing herein shall
in any way limit Beneficiary's remedies or Grantor's Obligations under the Assignment.

 

1.09B. Entry Onto
Secured Property; Lease of Secured Property. Beneficiary, at its option, may enter and take possession of the Secured Property
and manage and operate the same as provided in Section 4.01, such management and operation to include the right to enter
into Leases and new agreements and to take any action which, in Beneficiary's judgment, is necessary or proper to conserve the
value of the Secured Property. The expenses (including any receiver's fees, attorneys' fees and agent's compensation) incurred
pursuant to the powers herein contained shall be secured hereby. Beneficiary shall not be liable to account to Grantor for any
action taken pursuant hereto other than to account for any Rents actually received by Beneficiary.

 

1.09C.License
to Manage Secured Property. Notwithstanding anything to the contrary contained in Section 1.09A or Section 1.09B,
so long as there shall exist no Event of Default hereunder, Grantor shall have the license to manage and operate the Secured Property,
including the right to enter into Leases, and collect all Rents as they accrue (but not more than one month in advance).

 

    	
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1.09D. Delivery
of Assignments. Grantor shall execute such additional documents as may be reasonably requested from time to time by Beneficiary,
to evidence the assignment to Beneficiary or its nominee of any Leases now or hereafter made, such assignment documents to be in
form and content acceptable to Beneficiary. Grantor shall deliver to Beneficiary, within thirty (30) days after Beneficiary's written
request therefor (1) a duplicate original or photocopy of each Lease which is at the time of such request outstanding upon the
Secured Property and (2) a complete schedule, certified by Grantor, of each Lease, showing the unit number, type, Lessee name,
monthly rental, date to which Rents have been paid, term of Lease, date of occupancy, date of expiration, existing defaults, if
any, and every special provision, concession or inducement granted to such Lessee.

 

1.09E.Indemnity.
Grantor shall assert no claim or liability related to Beneficiary’s exercise of its rights pursuant to this Section 1.09.
Grantor expressly waives all such claims and liabilities. Grantor hereby holds Beneficiary harmless from and against any and all
claims, liabilities and expenses of any kind or nature against or incurred by Beneficiary arising out of Beneficiary's exercise
of its rights pursuant to this Section 1.09, including Beneficiary's management, operation or maintenance of the Secured
Property or the collection and disposition of Rents.

 

1.10      Further
Assurances.

 

1.10A.General;
Appointment of Attorney-in-Fact. Upon request by Beneficiary, from time to time, Grantor shall prepare, execute and deliver,
or cause to be prepared, executed and delivered, to Beneficiary, all instruments, certificates and other documents which may, in
the reasonable opinion of Beneficiary, be necessary or desirable in order to effectuate, complete, perfect or continue and preserve
the Obligations and the lien of this Deed of Trust provided that such instruments, certificates and other documents do not (i)
materially increase any obligation imposed on Grantor or (ii) materially change the applicability, scope or effect of any covenant,
condition, or restriction contained in any of the Loan Instruments. Upon any failure by Grantor to do so, Beneficiary may prepare,
execute and record any such instruments, certificates and documents for and in the name of Grantor and Grantor hereby appoints
Beneficiary the agent and attorney-in-fact of Grantor for such purposes. This power is coupled with an interest and shall be irrevocable
so long as any part of the Obligations remain unpaid or unperformed. Grantor shall reimburse Beneficiary for all sums expended
by Beneficiary in preparing, executing and recording such instruments, certificates and documents and such sums shall be secured
by this Deed of Trust.

 

1.10B.Statement
Regarding Obligations. Grantor shall, within ten (10) days after request by Beneficiary, furnish Beneficiary with a written
statement, duly acknowledged, setting forth (1) the unpaid principal balance of the Loan and the accrued but unpaid interest thereon,(2)
whether or not any setoffs or defenses exist against the payment of such principal or interest, and (3) if such setoffs or defenses
exist, the particulars thereof.

 

    	
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1.10C.Additional
Security Instruments. Grantor, from time to time and within fifteen (15) days after request by Beneficiary, shall execute,
acknowledge and deliver to Beneficiary such chattel mortgages, security agreements or other similar security instruments, in form
and substance reasonably satisfactory to Beneficiary, covering all property of any kind whatsoever owned by Grantor or in which
Grantor may have any interest which, in the opinion of Beneficiary, is necessary to the operation and maintenance of the Secured
Property or is otherwise a part of the Secured Property. Grantor, from time to time and within fifteen (15) days after request
by Beneficiary, shall also execute, acknowledge and deliver any financing statement, renewal, affidavit, certificate, continuation
statement, supplementary mortgage or other document as Beneficiary may reasonably request in order to perfect, preserve, continue,
extend or maintain the security interest under, and the priority of, this Deed of Trust or such chattel mortgage or other security
instrument, as a first lien. Grantor shall pay to Beneficiary on demand all costs and expenses incurred by Beneficiary in connection
with the preparation, execution, recording, filing and refiling of any such instrument or document, including charges for examining
title and attorneys' fees and expenses for rendering an opinion as to the priority of this Deed of Trust and of each such chattel
mortgage or other security agreement or instrument as a valid and subsisting first lien on such property. Neither a request so
made by Beneficiary, nor the failure of Beneficiary to make such a request, shall be construed as a release of such property, or
any part thereof, from the lien of this Deed of Trust. This covenant and each such mortgage, chattel or other security agreement
or instrument, delivered to Beneficiary are cumulative and given as additional security. Grantor shall pay all premiums and related
costs in connection with any title insurance policy or policies in full or partial replacement of the title insurance policy now
insuring or which will insure the lien of this Deed of Trust.

 

1.10D.Security
Agreement. This Deed of Trust shall constitute a security agreement under Article 9 of the Code with respect to the Personal
Property covered by this Deed of Trust. Pursuant to the applicable Granting Clauses hereof, Grantor has granted Beneficiary a security
interest in the Personal Property and in all additions and accessions thereto, substitutions therefor and proceeds thereof for
the purpose of securing all Obligations now or hereafter secured by this Deed of Trust. The following provisions relate to such
security interest:

 

(1)      The Personal Property
includes all now existing or hereafter acquired or arising equipment, inventory, accounts, chattel paper, instruments, documents,
deposit accounts, investment property, letter-of-credit rights, commercial tort claims, supporting obligations and general intangibles
now or hereafter used or procured for use on the Premises or otherwise relating to the Premises. If Grantor shall at any time acquire
a commercial tort claim relating to the Premises, Grantor shall immediately notify Beneficiary in a writing signed by Grantor of
the brief details thereof and grant to Beneficiary a security interest therein and in the proceeds thereof.

 

(2)      Grantor hereby
irrevocably authorizes Beneficiary at any time and from time to time to file in any filing office in any Uniform Commercial Code
jurisdiction any initial financing statements and amendments thereto that (a) indicate the collateral as “all assets used
or procured for use or otherwise relating to” the Premises or words of similar effect, or as being of equal or lesser scope
or in greater detail, and to indicate the Premises as defined, or in a manner consistent with the term as defined, in this Deed
of Trust and (b) contain any other information required by part 5 of Article 9 of the Uniform Commercial Code of the filing office
for the sufficiency or filing office acceptance of any initial financing statement or amendment, including whether Grantor is an
organization, the type of organization and any organizational identification number issued to Grantor. Grantor agrees to provide
any such information to Beneficiary promptly upon written request. Grantor also ratifies its authorization for Beneficiary to have
filed in any filing office in any Uniform Commercial Code jurisdiction any like initial financing statements or amendments thereto
if filed prior to the date hereof. Grantor shall pay to Beneficiary, from time to time, upon demand, any and all costs and expenses
incurred by Beneficiary in connection with the filing of any such initial financing statements and amendments, including attorneys’
fees and all disbursements. Such costs and expenses shall bear interest at the Increased Rate from the date paid by Beneficiary
until the date repaid by Grantor and such costs and expenses together with such interest, shall be part of the Obligations and
shall be secured by this Deed of Trust.

 

    	
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(3)      Grantor shall
any time and from time to time take such steps as Beneficiary may reasonably request for Beneficiary to obtain “control”
of any Personal Property for which control is a permitted or required method to perfect or to insure priority of the security interest
in such Personal Property granted hereby.

 

(4)      Upon the occurrence
of an Event of Default, Beneficiary shall have the rights and remedies of a secured party under the Code as well as all other rights
and remedies available at law or in equity or under this Deed of Trust.

 

(5)      This Deed of Trust
also constitutes a fixture filing.

 

(6)      If Grantor does
not have an organizational identification number and later obtains one, Grantor shall forthwith notify Beneficiary of such organizational
identification number.

 

(7)      Terms defined
in the Code and not otherwise defined in this Deed of Trust have the same meanings in this Section 1.10D as are set forth
in the Code. In the event that a term is used in Article 9 of the Code and also in another Article of the Code, the term used in
this Section 1.10D is that used in Article 9. The term “control", as used in this Paragraph, has the meaning
given in Section 9-104, 9-105, 9-106 or 9-107 of Article 9 of the Code, as applicable.

 

1.10E.Preservation
of Grantor's Existence. Grantor shall do all things necessary to preserve and keep in full force and effect its existence,
franchises, rights and privileges under the laws of the state of its formation and of the State, and shall comply with all applicable
Legal Requirements.

 

1.10F.Further
Indemnities. In addition to any other indemnities contained in the Loan Instruments, and except as otherwise limited in the
Loan Instruments, Grantor hereby agrees to indemnify and hold Beneficiary harmless from and against all losses, liabilities, suits,
obligations, fines, damages, penalties, claims, costs, charges and expenses, including architects', engineers' and attorneys' fees
and disbursements which may be imposed upon, incurred or asserted against Beneficiary by reason of: (1) the construction of the
Improvements, (2) any capital improvements, other work or things, done in, on, under or about the Secured Property or any part
thereof, (3) any use, nonuse, misuse, possession, occupation, alteration, repair, condition, operation, maintenance or management
of the Secured Property or any part thereof or any street, drive, sidewalk, curb, passageway or space adjacent thereto, (4) any
negligence or willful act or omission on the part of Grantor, any Lessee or any agent, contractor, servant, employee, licensee
or invitee of any Lessee or of Grantor, (5) any accident, injury (including death) or damage to any person or property occurring
in, on, under or about the Secured Property or any part thereof or in, on, under or about any street, drive, sidewalk, curb, passageway
or space adjacent thereto, (6) any default under any Loan Instrument or any Event of Default, (7) any lien or claim arising or
alleged to have arisen on or against the Secured Property or any part thereof under any Legal Requirement or any liability asserted
against Beneficiary with respect thereto, (8) any tax attributable to the execution, delivery, filing or recording of any Loan
Instrument, (9) any contest permitted pursuant to the provisions of this Deed of Trust, or (10) the enforcement or attempted enforcement
of this indemnity.

 

    	
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1.10G.Absence
of Insurance. The obligations of Grantor under this Deed of Trust and the other Loan Instruments shall not in any way be affected
by (1) the absence, in any case, of adequate insurance, (2) the amount of the insurance or (3) the failure or refusal of any insurer
to perform any obligation required to be performed by it pursuant to any insurance policy affecting the Secured Property. If any
claim, action or proceeding is made or brought against Beneficiary by reason of any event as to which Grantor is obligated to indemnify
Beneficiary, then, upon demand by Beneficiary, Grantor, at Grantor’s sole cost and expense, shall resist or defend such claim,
action or proceeding in Beneficiary's name, if necessary, by such attorneys as Beneficiary shall approve. Notwithstanding the foregoing,
Beneficiary may engage its own attorneys, in its discretion, to defend it or to assist in its defense, and Grantor shall pay the
fees and disbursements of such attorneys and, until so paid, such amounts shall bear interest at the Increased Rate and shall be
secured by this Deed of Trust.

 

1.10H.Lost Note.
Upon Beneficiary furnishing to Grantor an affidavit stating that the Note has been mutilated, destroyed, lost or stolen (and that
Beneficiary is the current owner thereof free of liens), Grantor shall deliver to Beneficiary, in substitution therefor, a new
note containing the same terms and conditions as the Note, with a notation thereon of the unpaid principal balance and accrued
and unpaid interest thereon. Upon execution and delivery of the replacement note, all references in any of the Loan Instruments
to the “Note” shall mean the replacement note.

 

1.11     Prohibition
on Transfers, Liens or Further Encumbrances.

 

1.11A.Continuing
Ownership and Management. Grantor acknowledges that the continuous ownership of the Secured Property and its continuous management
and operational control by Grantor are material to the making of the Loan.

 

1.11B.Prohibition
on Transfers, Liens or Further Encumbrances. Except with the prior written consent of Beneficiary, neither Grantor, nor any
other Person, may transfer, convey, assign, sell, alienate, mortgage, encumber, pledge, hypothecate, grant a security interest
in, or otherwise dispose of (in each instance whether voluntarily or involuntarily, by operation of law or otherwise, directly
or indirectly, and, in each case, also prohibiting the granting of an option or the execution of an agreement relating to any of
the foregoing):

 

		(1)	all or any part of the Secured Property and/or the Rents, or any interest therein;

 

    	
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		(2)	any legal or beneficial ownership interest in Grantor or in any of Grantor’s constituent
entities, whether direct or indirect, and on all levels, whether made directly or through an intermediary, and whether made in
one transaction or effected in more than one transaction; or

 

		(3)	the management and operation by Grantor of the Secured Property.

 

Without limiting the generality of the
foregoing, for purposes of this Section 1.11, a transfer or disposition of the Secured Property (or the Rents, as applicable)
or any part thereof or interest therein shall include (a) the change of Grantor's type of organization, jurisdiction of organization
or other legal structure, (b) the transfer of the Secured Property or any part thereof or interest therein to a cooperative corporation
or association, (c) the conversion of all or any part of the Secured Property or interest therein to a condominium form of ownership,
(d) any lease for space in any Improvements for purposes other than occupancy by the tenant, (e) any lease for space in the Improvements
containing an option to purchase, (f) any conditional sale or any title retention agreement with regard to, all or any part of
the Secured Property or the Rents and (g) unless Grantor has provided Beneficiary with at least thirty (30) days prior written
notice thereof, any change of Grantor's name, place of business or, if Grantor has more than one place of business, any change
of its chief executive office, or any change of Grantor's mailing address or organizational identification number if it has one.
Any action or event described in this Section 1.11B is herein called a "Transfer" and all Transfers are
prohibited without the prior written consent of Beneficiary.

 

1.11C.Acceleration
of Obligations. In the event of a Transfer without the prior written consent of Beneficiary, Beneficiary may, without limiting
any other right or remedy available to Beneficiary at law, in equity or by agreement with Grantor, and in Beneficiary's discretion,
and without regard to the adequacy of its security, accelerate the maturity of the Note and require the payment of all then existing
Obligations, including the Make-Whole Amount provided in Section 4.06. The giving of consent by Beneficiary to a Transfer
in any one or more instances shall not limit or waive the need for such consent in any other or subsequent instances.

 

1.12      Expenses.
Promptly after Beneficiary’s demand therefor, Grantor shall pay Beneficiary for all costs and expenses, including attorneys’
fees and expenses and costs of obtaining evidence of title, incurred by Beneficiary in connection with any action, suit, legal
proceeding, claim or dispute (a) arising under or in connection with the performance of any rights or obligations under any Loan
Instrument or affecting the Obligations or the Secured Property, (b) involving any insurance proceeds or condemnation awards with
respect to the Secured Property, (c) to protect the security hereof, (d) as to any concern of Beneficiary with the condition of
the Secured Property, or (e) of any other kind or nature in which Beneficiary is made a party relating to the Secured Property
or the Loan, or appears as a party, including those related to the estate of an insolvent or decedent or any bankruptcy, receivership,
or other insolvency under any chapter of the Bankruptcy Code (Title 11 of the United States Code), as amended, or any other insolvency
proceeding or any exercise of the power of sale or judicial foreclosure as set forth in this Deed of Trust. If the Obligations
are referred to attorneys for collection, foreclosure or any cause set forth in Article III, Grantor shall pay all costs and expenses
incurred by Beneficiary, including attorneys' fees and expenses, all costs of collection, litigation costs and costs (which may
be estimated as to items to be expended after completion of any foreclosure or other action) of procuring title insurance policies,
whether or not obtained, Torrens certificates and similar assurances with respect to title and value as Beneficiary may deem necessary
together with all statutory costs, with or without the institution of an action or proceeding. All costs and expenses described
in this Section 1.12, with interest thereon at the Increased Rate from the date paid by Beneficiary to the date paid by Grantor,
shall be paid by Grantor on demand, and shall be secured by this Deed of Trust.

 

    	
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ARTICLE II

REPRESENTATIONS AND WARRANTIES

 

Grantor represents and
warrants:

 

2.01       Warranty of
Title. Grantor (a) lawfully owns and holds title to the Secured Property (other than the Personal Property), in fee simple,
subject to no mortgage, lien, charge or other encumbrance, except as specifically set forth in the title insurance policy issued
to Beneficiary upon recordation of this Deed of Trust (the “Title Policy”), (b) has full power and lawful authority
to grant, bargain, sell, convey, assign, release, pledge, set over, transfer and mortgage the Secured Property as set forth herein,(c)
lawfully owns and holds title to the Personal Property subject to no mortgage, lien, charge or other encumbrance except as set
forth herein, and (d) does warrant and will defend the title to the Secured Property against all claims and demands whatsoever.

 

2.02       Ownership of
Additional or Replacement Improvements and Personal Property. All Improvements and Personal Property hereafter affixed, placed
or used by Grantor on the Secured Property shall be owned by Grantor free from all mortgages, liens, charges or other encumbrances
other than set forth in the Title Policy.

 

2.03      No Pending
Material Litigation or Proceeding; No Hazardous Materials.

 

2.03A. Proceedings
Affecting Grantor. There are no actions, suits, investigations or proceedings of any kind pending, or, to the best knowledge
and belief of Grantor, threatened, against or affecting Grantor, or any Guarantor, or against any shareholder, general partner
or member of Grantor or any Guarantor, or the business, operations, properties or assets of Grantor or any shareholder, general
partner or member of Grantor or any Guarantor, or before or by any Governmental Agency, which may result in any material adverse
change in the business, operations, properties or assets or in the condition, financial or otherwise, of Grantor or any Guarantor
or any general partner or member of Grantor or any Guarantor, or in the ability of Grantor to pay or otherwise perform the Obligations.
To the best knowledge and belief of Grantor, no default exists with respect to any judgment, order, writ, injunction, decree, demand,
rule or regulation of any Governmental Agency, which might materially and adversely affect the business, operations, properties
or assets or the condition, financial or otherwise, of Grantor or any Guarantor or any general partner or member of Grantor or
the ability of Grantor to pay or otherwise perform the Obligations.

 

    	
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2.03B. Proceedings
Affecting Secured Property. There are no actions, suits, investigations or proceedings of any kind pending, or, to the best
knowledge and belief of Grantor, threatened, against or affecting the Secured Property (including any attempt or threat by any
Governmental Agency to condemn or rezone all or any portion of the Secured Property), or involving the validity, enforceability
or priority of the Loan Instruments or enjoining or preventing or threatening to enjoin or prevent the use and occupancy of the
Secured Property or the performance by Grantor of the Obligations, and there are no rent controls, governmental moratoria or environmental
controls (other than those generally imposed by federal or state law) presently in existence or, to the best knowledge and belief
of Grantor, threatened, affecting the Secured Property.

 

2.03C. No Hazardous
Material. Neither Grantor nor, to the best knowledge and belief of Grantor, any other Person has ever:

 

(1)       caused or knowingly
permitted any Hazardous Material to be placed, held, located or disposed of, in, on, under or about the Secured Property or any
part thereof, except for the use, storage and disposal (such use, storage and disposal to be in all cases in accordance with all
applicable Legal Requirements) of de minimis amounts of janitorial and cleaning supplies and other Hazardous Materials typically
used in the ordinary course of operating and maintaining a first class apartment complex, or caused or knowingly permitted, in
violation of any Legal Requirement, any Hazardous Material to be placed, held, located or disposed of, in, on, under or about any
other real property legally or beneficially owned (or any interest or estate which is so owned) by Grantor in any jurisdiction
now or hereafter having in effect a so-called "superlien" law or ordinance (the effect of which superlien law or ordinance
would be to permit the creation of a lien on the Secured Property to secure any obligation), and neither the Secured Property,
nor any part thereof, nor any other real property legally or beneficially owned (or any interest or estate therein which is so
owned) by Grantor in any jurisdiction now or hereafter having in effect a so-called "superlien" law or ordinance or any
part thereof, has ever been used (whether by Grantor or, to the best knowledge or belief of Grantor, by any other Person) as a
dump site, storage (whether permanent or temporary) site or transfer site for any Hazardous Material; or

 

(2)      caused or knowingly
permitted any asbestos or underground fuel storage facility to be located in, on, under or about the Secured Property; or

 

(3)      discovered any
occurrence or condition on any real property adjoining or in the vicinity of the Secured Property that could cause the Secured
Property or any part thereof to be subject to any remediation requirements or any restrictions on the ownership, occupancy, transferability
or use of the Secured Property under any Environmental Requirement.

 

2.03D.No Litigation
Regarding Hazardous Material. To the best knowledge and belief of Grantor after due inquiry, no Person has brought, settled
or threatened any litigation or administrative action or proceeding alleging the presence, Release or threatened Release of any
Hazardous Material in, on, under or about the Secured Property.

 

    	
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2.04      Valid Organization,
Good Standing and Qualification of Grantor; Other Organizational Information. Grantor is a duly and validly organized and existing
limited liability company in good standing under the laws of the jurisdiction of its organization, and is duly licensed or qualified
and in good standing in all other jurisdictions where its ownership or leasing of property or the nature of the business transacted
by it makes such qualification necessary, and is entitled to own its properties and assets and to carry on its business, all as,
and in the places where, such properties and assets are now owned or operated or such business is now conducted. Grantor has paid
all franchise and similar taxes in the jurisdiction in which the Secured Property is located and in all of the jurisdictions in
which it is so qualified, insofar as such taxes are due and payable at the date of this Deed of Trust. Grantor’s exact legal
name is that indicated on the signature page hereof. Grantor is an organization of the type, and is organized in the jurisdiction,
as set forth in the first paragraph of this Deed of Trust. Grantor’s organizational identification number is 5465572. Section
5.07 accurately sets forth Grantor’s place of business or, if Grantor has more than one place of business, its chief executive
office as well as Grantor’s mailing address if different.

 

2.05      Authorization;
No Legal Restrictions on Performance. The execution and delivery by Grantor of the Loan Instruments and its compliance with
the terms and conditions of the Loan Instruments have been duly and validly authorized by all necessary corporate, partnership,
membership or other applicable action by Grantor and its constituent entities and the Loan Instruments are valid and enforceable
obligations of Grantor in accordance with the terms thereof. Neither the execution and delivery by Grantor of the Loan Instruments,
nor the consummation of the transactions contemplated by the Loan Instruments, nor compliance with the terms and conditions thereof
will (A) conflict with or result in a breach of, or constitute a default under, any of the terms, obligations, covenants or conditions
or provisions of (1) any corporate charter or bylaws, partnership agreement, limited liability company operating agreement, or
other organizational or qualification document, restriction, indenture, mortgage, deed of trust, pledge, bank loan or credit agreement,
or any other agreement or instrument to which Grantor is now a party or by which Grantor or its properties may be bound or affected,
or (2) to the best knowledge and belief of Grantor, any judgment, order, writ, injunction, decree or demand of any Governmental
Agency, or (B) result in (1) the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any property
or asset of Grantor pursuant to the terms or provisions of any of the foregoing or (2) the violation of any Legal Requirement applicable
to Grantor or any Guarantor. Grantor is not in default in the performance, observance or fulfillment of any of the terms, obligations,
covenants or conditions contained in any indenture or other agreement creating, evidencing or securing the Obligations or pursuant
to which Grantor is a party or by which the Grantor or its properties may be bound or affected.

 

In addition, (a) the
Obligations incurred by Grantor and the granting of this Deed of Trust and of the security interest, rights, and/or lien in and
to the Secured Property in connection with the Loan are not made or incurred with the intent to hinder, delay, or defraud any present
or future creditor of Grantor; (b) Grantor has not received less than reasonably equivalent value in exchange for incurring the
Obligations and/or the granting of this Deed of Trust and of the security interest, rights, and/or lien in and to the Secured Property
in connection with the Loan; (c) Grantor is solvent as of the date hereof, and Grantor will not become insolvent as a result of
incurring the Obligations and/or the granting of this Deed of Trust and of the security interest, rights, and/or lien in and to
the Secured Property in connection with the Loan; (d) Grantor is not engaged, and Grantor is not about to engage, in business or
a transaction for which any property remaining with Grantor is an unreasonably small capital; (e) Grantor has not and does not
intend to incur, and Grantor does not believe that it will incur, debts that would be beyond Grantor’s ability to pay as
such debts mature; and (f) Grantor is not granting this Deed of Trust and the security interest, rights, and/or lien in and to
the Secured Property and/or incurring the Obligations to or for the benefit of an insider (as defined in 11 U.S.C. § 101(31)),
under an employment contract and other than in the ordinary course of business.

 

    	
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2.06      Compliance
With Laws. Grantor has, to the best knowledge and belief of Grantor, complied with all applicable Legal Requirements with respect
to the conduct of its business and ownership of its properties. No governmental orders, permissions, consents, approvals or authorizations
are required to be obtained, and no registrations or declarations are required to be filed in connection with the execution, delivery
or performance by Grantor of its obligations under the Loan Instruments.

 

2.07     Tax Status.
Grantor has filed all United States income tax returns and all state and municipal tax returns which are required to be filed,
and has paid, or made provision for the payment of, all taxes which have become due pursuant to such returns or pursuant to any
assessment received by Grantor. The United States income tax liability of Grantor, if any, has been finally determined by the Internal
Revenue Service and satisfied for all taxable years up to and including the taxable year ending December 31, 2012.

 

2.08     Absence
of Foreign or Enemy Status; Absence of Blocked Persons; Foreign Corrupt Practices Act. Neither the Loan, nor Grantor's use
of the proceeds thereof, will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations
of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order
relating thereto. Grantor is and shall remain in compliance with the requirements of Executive Order 13224 of September 23, 2001
“Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism”
(66 Fed. Reg. 49079 (2001)) (the “Order”) and other similar requirements contained in the rules and regulations of
the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) and in any enabling legislation or other
executive orders or regulations in respect thereof (the Order and such other rules regulations, legislation or orders are referred
to hereinafter, collectively, as the “Orders”). Without limiting the generality of the foregoing, neither Grantor,
nor any subsidiary or affiliate of Grantor, nor any member, partner or shareholder or other beneficial owner of Grantor or of any
such subsidiary, affiliate, member, partner, shareholder or other beneficial owner (A) is listed on the Specially Designated Nationals
and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other list of terrorists or terrorist organizations
maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Orders, (B) is or will become
a “blocked person” described in Section 1 of the Order or (C) knowingly engages or will engage in any dealings or transactions,
or is or will be otherwise associated, with any such blocked person. No part of the proceeds of the Loan will be used, directly
or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate
for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the Foreign Corrupt Practices Act of 1977, as amended. Grantor shall promptly notify Beneficiary
should Grantor become aware of any information which would render untrue any of the representations, warranties or covenants set
forth in this Section 2.08.

 

    	
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2.09      Federal
Reserve Board Regulations. No part of the proceeds of the Loan will be used, directly or indirectly, for the purpose of buying
or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR
221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve Grantor in a
violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said
Board (12 CFR 220). Margin stock does not constitute any of the value of the consolidated assets of Grantor and its subsidiaries,
if any, and Grantor does not have any present intention that margin stock will constitute any of the value of such assets. As used
in this Section, the terms "margin stock" and "purpose of buying or carrying" shall have the meanings assigned
to them in said Regulation U.

 

2.10       Investment
Company Act and Public Utility Holding Company Act. Neither Grantor, nor any subsidiary of Grantor, if any, is subject to regulation
under the Investment Company Act of 1940, as amended, the Public Utility Holding Company Act of 1935, as amended, the Interstate
Commerce Act, as amended, or the Federal Power Act as amended.

 

2.11       Exempt Status
of Transactions Under Securities Act and Representations Relating Thereto. Neither Grantor, nor anyone acting on its behalf,
has (a) solicited offers to make all or any part of the Loan, from more than ten Persons or (b) otherwise approached, negotiated
or communicated with more than ten Persons regarding the making of all or any part of the Loan by such Person(s). Neither Grantor,
nor anyone acting on its behalf has taken, or will take, any action that would subject the making of the Loan to the registration
requirements of Section 5 of the Securities Act of 1933, as amended.

 

2.12       ERISA .

 

2.12A.      Neither Grantor
nor any entity that holds a direct or indirect interest in Grantor (a “Constituent Entity”) is or shall be (i) an employee
benefit plan within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974 (“ERISA”) regardless
of whether such plan is actually subject to ERISA, (ii) a plan to which Internal Revenue Code Section 4975 applies, or (iii) an
entity the underlying assets of which include ERISA “plan assets” by reason of a plan’s investment in the entity
(e.g., insurance company general or separate account; bank commingled fund).

 

2.12B.      Transactions by
or with Grantor are not and will not be subject to any Legal Requirements regulating investments of and fiduciary obligations with
respect to an employee benefit plan (within the meaning of Section 3(3) of ERISA), regardless of whether such plan is actually
subject to ERISA.

 

2.12C.      Any liability
or obligation that Grantor (or any Constituent Entity) may have in respect of an employee benefit plan as defined in Section 3(3)
of ERISA regardless of whether such plan is actually subject to ERISA has been and shall continue to be satisfied in full.

 

    	
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ARTICLE III

DEFAULTS

 

3.01     Events of
Default. The existence of any of the following circumstances shall be deemed an "Event of Default" pursuant to this
Deed of Trust, without cure or grace period unless expressly otherwise provided herein:

 

3.01A. if Grantor
fails to pay any portion of the Obligations as and when the same shall become due and payable as provided in the Loan Instruments;
or

 

3.01B. if Grantor fails
to perform or observe any other term, provision, covenant or agreement in the Loan Instruments other than as described in the other
clauses of this Section 3.01 and such failure continues for thirty (30) days following written notice from Beneficiary, provided
that if such failure to perform is not monetary and by its nature cannot reasonably be remedied within thirty (30) days following
such written notice from Beneficiary, but is capable of cure, Grantor shall have such additional period of time (but in no event
exceeding an additional thirty (30) days) as may be reasonably necessary to cure such default provided that Grantor commences such
cure in good faith promptly upon receipt of Beneficiary’s notice and proceeds diligently thereafter to cure same; or

 

3.01C. if any representation,
warranty, certification, financial statement or other information made or furnished at any time pursuant to the terms of the Loan
Instruments or otherwise, by or on behalf of Grantor, any Guarantor or any other Person liable for the Obligations, shall prove
to be materially false; or

 

3.01D. if Grantor
shall:

 

(1)   apply for, consent
to or acquiesce in the appointment of a receiver, trustee or liquidator of Grantor or of all or any part of Grantor's assets or
the Secured Property or any interest in any part thereof (the term "acquiesce" includes the failure to file a petition
or motion to vacate or discharge any order, judgment or decree providing for such appointment within ten (10) days after the appointment);
or

 

(2)   commence a voluntary
case or other proceeding in bankruptcy, or admit in writing its inability to pay its debts as they come due; or

 

(3)   make a general
assignment for the benefit of creditors; or

 

(4)  file a petition
or an answer seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself
under any present or future bankruptcy code or any other statute or law relating to bankruptcy, insolvency or other relief for
debtors; or

 

(5)   file an answer
admitting the material allegations of, or consent to, or default in answering, a petition filed against it in any bankruptcy, reorganization
or insolvency case or proceeding; or

 

    	
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3.01E.if a court
of competent jurisdiction enters an order for relief against Grantor under any present or future bankruptcy code or any other statute
or law relating to bankruptcy, insolvency or other relief for debtors, which order shall continue unstayed and in effect for any
period of forty-five (45) consecutive days; or

 

3.01F.if a court
of competent jurisdiction enters an order, judgment or decree adjudicating Grantor insolvent, approving a petition seeking reorganization
or arrangement of Grantor or appointing a receiver, custodian, trustee or liquidator of Grantor or of all or any part of Grantor's
assets or the Secured Property or any interest in any part thereof, and such order, judgment or decree shall continue unstayed
and in effect for any period of forty-five (45) consecutive days; or

 

3.01G.if Grantor
assigns or purports to assign the whole or any part of the Rents arising from the Secured Property or any part thereof without
the prior written consent of Beneficiary; or

 

3.01H.if a Transfer
in violation of the Loan Instruments shall occur without the prior written consent of Beneficiary; or

 

3.01I.if Grantor
shall be in default beyond any applicable grace period pursuant to any other mortgage, security instrument or other agreement affecting
Grantor or any substantial part of its assets or all or any part of the Secured Property; or

 

3.01J.if any mechanic's,
laborer's or materialman's lien, federal tax lien, broker's lien or other lien not permitted hereunder and affecting the Secured
Property or any part thereof is not discharged, by payment, bonding, order of a court of competent jurisdiction or otherwise, within
twenty (20) days after Grantor receives notice thereof from the lienor or from Beneficiary; or

 

3.01K.if any of the
events described in Section 3.01(D), Section 3.01(E) and/or Section 3.01(F) shall occur in respect of any
Guarantor; or

 

3.01L.if a default
by any Guarantor or other Person (other than Beneficiary) shall occur under any guaranty, indemnity agreement, or other instrument
which it has executed in connection with the Loan and such default continues for thirty (30) days following written notice from
Beneficiary, provided that such thirty (30) day grace period shall not apply to a monetary default or a default pursuant to Section
3.01(K) or Section 3.01(M); or

 

3.01M.if any Guarantor
shall contest, repudiate or purport to revoke any guaranty, indemnity agreement or other instrument which it has executed in connection
with the Loan for any reason or if any such guaranty, indemnity or other instrument shall cease to be in full force and effect
as to the Guarantor or shall be judicially declared null and void as to the Guarantor, or if any Guarantor shall be liquidated,
dissolved or wound-up.

 

    	
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ARTICLE IV

 

REMEDIES

 

4.01Acceleration,
Foreclosure, etc. Upon the happening of any Event of Default, Beneficiary may, at its sole option, declare the entire unpaid
balance of the Obligations, including, the Make-Whole Amount and any other prepayment charges, if any, due pursuant to any Loan
Instrument, immediately due and payable without further notice or demand, provided, however, simultaneously with the occurrence
of an Event of Default under Section 3.01D, 3.01E or 3.01F,and without the necessity of any notice or other
action by the Beneficiary, all Obligations shall automatically become and be due and payable, without notice or demand. In addition,
upon the happening of any Event of Default, Beneficiary may, at its sole option, without further delay, undertake any one or more
of the following or exercise any other remedies available to it under applicable law or equity:

 

4.01A.Foreclosure.
Institute an action, judicial or otherwise, to foreclose this Deed of Trust, or take such other action as may be allowed at law
or in equity, for the enforcement hereof and realization on the Secured Property or any other security which is herein or elsewhere
provided for, or proceed thereon through power of sale or to final judgment and execution thereon for the entire unpaid balance
of the Obligations, including interest at the rate specified in the Loan Instruments to the date of the Event of Default and thereafter
at the Increased Rate, and all other sums secured by this Deed of Trust, including all attorneys' fees and expenses, costs of suit
and other collection costs, interest at the Increased Rate on any judgment obtained by Beneficiary from and after the date of any
sale of the Secured Property (which may be sold in one parcel or in such parcels, manner or order as Beneficiary shall elect) until
actual payment is made of the full amount due Beneficiary pursuant to the Loan Instruments, any law, usage or custom to the contrary
notwithstanding.

 

4.01B.Partial
Foreclosure. Beneficiary shall have the right to foreclose the lien hereof to satisfy payment and performance of any part of
the Obligations from time to time. If an Event of Default exists as to the payment of any part of the Obligations, as an alternative
to the right of foreclosure to satisfy payment of the Obligations after acceleration thereof, to the extent permitted by applicable
law, Beneficiary may institute partial foreclosure proceedings ("Partial Foreclosure") with respect to the portion
of the Obligations as to which the Event of Default exists, as if under a full foreclosure, and without declaring the entire unpaid
balance of the Obligations due. If Beneficiary institutes a Partial Foreclosure, Beneficiary may sell, from time to time, such
part or parts of the Secured Property as Beneficiary, in its discretion, deems appropriate, and may make each such sale subject
to the continuing lien of this Deed of Trust for the remainder, from time to time, of the Obligations. No Partial Foreclosure,
if so made, shall in any manner affect the remainder, from time to time, of the Obligations or the priority of this Deed of Trust.
As to such remainder, this Deed of Trust and the lien hereof shall remain in full force and effect as though no foreclosure sale
had been made pursuant to the provisions of this Section 4.01B. Notwithstanding the filing of any Partial Foreclosure or the entry
of a decree of sale therein, Beneficiary may elect, at any time prior to any Partial Foreclosure, to discontinue such Partial Foreclosure
and the acceleration of the Obligations by reason of any Event of Default upon which such Partial Foreclosure was predicated, and
to proceed with full foreclosure proceedings. Beneficiary may commence a Partial Foreclosure, from time to time, as to any part
of the Obligations without exhausting the right of full foreclosure or Partial Foreclosure for any other part of the Obligations
as to which such Partial Foreclosure shall not have occurred.

 

    	
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4.01C. Entry.
Beneficiary personally, or by its agents or attorneys, may enter all or any part of the Secured Property, and may exclude Grantor,
its agents and servants wholly therefrom without liability for trespass, damages or otherwise. Grantor shall surrender possession
of the Secured Property to Beneficiary on demand after the happening of any Event of Default. Thereafter, Beneficiary may use,
operate, manage and control the Secured Property and conduct the business thereof, either personally or by its superintendents,
managers, agents, servants, attorneys or receivers. Upon each such entry, Beneficiary, at the expense of Grantor from time to time,
either by purchase, repairs or construction, may maintain and restore the Secured Property, may complete the construction of the
Improvements and in the course of such completion may make such changes in the contemplated or completed Improvements as Beneficiary
may deem desirable and may insure the same. At the expense of Grantor, Beneficiary may make, from time to time, all necessary or
desirable repairs, renewals and replacements and such alterations, additions, betterments and improvements thereto and thereon
as Beneficiary may reasonably deem advisable to protect the value of the Secured Property. In each of the circumstances described
in this Section 4.01C, Beneficiary shall have the right to manage and operate the Secured Property and to carry on the business
thereof and exercise all rights and powers of Grantor with respect thereto, either in the name of Grantor or otherwise as Beneficiary
shall deem best.

 

4.01D.Collection
of Rents, etc. Beneficiary may collect and receive all Rents. Beneficiary may deduct, from the monies so collected and received,
all expenses of conducting the business of the Secured Property and of all maintenance, repairs, renewals, replacements, alterations,
additions, betterments and improvements and amounts necessary to pay for Impositions, insurance, taxes and assessments, liens or
other charges upon the Secured Property or any part thereof, as well as reasonable compensation for the services of Beneficiary
and for all attorneys, agents, clerks, servants, and other employees engaged and employed by Beneficiary. After such deductions
and the establishment of all reasonable reserves, Beneficiary shall apply all such monies to the payment of the unpaid Obligations.
Beneficiary shall account only for Rents actually received by Beneficiary.

 

4.01E.Receivership.
Beneficiary may have a receiver appointed to enter into possession of the Secured Property, collect the Rents therefrom and apply
the same as the court may approve. Beneficiary may have a receiver appointed, as a matter of right without notice and without the
necessity of proving either the inadequacy of the security provided by this Deed of Trust or the insolvency of Grantor or any other
Person who may be legally or equitably liable to pay the Obligations. Grantor and each such Person, presently and prospectively,
waive such proof and consent to the appointment of such receiver. If Beneficiary or any receiver collects the Rents, the monies
so collected shall not be substituted for payment of the Obligations, nor can they be used to cure an Event of Default, without
the prior written consent of Beneficiary. Beneficiary shall not be liable to account for Rents not actually received by Beneficiary.

 

4.01F.Specific
Performance. Beneficiary may institute an action for specific performance of any covenant contained herein or in aid of the
execution of any power herein granted.

 

    	
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4.01G. Recovery
of Sums Required to be Paid. Beneficiary may, from time to time, take action to recover any sum or sums which constitute a
part of the Obligations as such sums shall become due, without regard to whether or not the remainder of the Obligations shall
be due, and without prejudice to the right of Beneficiary thereafter to bring an action of foreclosure or any other action for
each Event of Default existing from time to time.

 

4.01H.Other Remedies.
Beneficiary may take all actions permitted under the Uniform Commercial Code of the State and may take any other action, or pursue
any other right or remedy, as Beneficiary may have under applicable law, and Grantor does hereby grant such rights to Beneficiary.

 

4.01I.State Specific
Remedies. Beneficiary may exercise all other remedies as specified below in Article VI, Special State Provisions, which are
incorporated herein by reference.

 

4.02      No Election
of Remedies. Beneficiary may, in its discretion, exercise all or any of the rights and remedies provided herein or in the other
Loan Instruments, or which may be provided by statute, law, equity or otherwise, in such order and manner and from time to time,
as Beneficiary shall elect without impairing Beneficiary's lien, or rights pursuant to any of the Loan Instruments and without
affecting the liability of any Person for the Obligations.

 

4.03     Beneficiary's
Right to Release, etc. Beneficiary may, in its discretion, from time to time, release (for such consideration as Beneficiary
may require) any part of the Secured Property (A) without notice to, or the consent, approval or agreement of any other party in
interest, (B) without, as to the remainder of the Secured Property, in any way impairing or affecting the validity or the lien
of this Deed of Trust or any of the other Loan Instruments, or the priority thereof and (C) without releasing Grantor from any
liability for any of the Obligations. Beneficiary may accept, by assignment, pledge or otherwise, any other property in place of
any part of the Secured Property as Beneficiary may require without being accountable for so doing to any other lienor or other
Person. To the extent permitted by law, neither Grantor, nor the holder of any lien or encumbrance affecting the Secured Property
or any part thereof shall have the right to require Beneficiary to marshall assets.

 

    	
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4.04      Beneficiary's
Right to Remedy Defaults, etc. If Grantor defaults in the performance of any of the covenants or agreements contained in this
Deed of Trust or any of its other obligations under the other Loan Instruments beyond any applicable cure periods, or if any action
or proceeding is commenced which affects Beneficiary’s interest in the Secured Property or any part thereof, including, but
not limited to, eminent domain, code enforcement, or proceedings of any nature whatsoever under any federal or state law, whether
now existing or hereafter enacted or amended, relating to bankruptcy, insolvency, arrangement, reorganization or other form of
debtor relief, then Beneficiary may, but without obligation to do so and without releasing Grantor from any obligation hereunder,
cure such defaults, make such appearances, disburse such sums and/or take such other action as Beneficiary deems necessary or appropriate
to protect Beneficiary’s interest, including disbursement of attorneys’ fees, entry upon the Secured Property to make
repairs, payment of Impositions or insurance premiums or otherwise cure the default in question or protect the security of the
Secured Property, and payment, purchase, contest or compromise of any encumbrance, charge or lien encumbering the Secured Property.
Grantor further agrees to pay all expenses incurred by Beneficiary (including fees and disbursements of counsel) pursuant to this
Section 4.04, including those incident to the curing of any default and/or the protection of the rights of Beneficiary hereunder,
and enforcement or collection of payment of the Note or any future advances whether by judicial or nonjudicial proceedings, or
in connection with any bankruptcy, insolvency, arrangement, reorganization or other debtor relief proceeding of Grantor, or otherwise.
Any amounts disbursed by Beneficiary pursuant to this Section 4.04 shall be additional indebtedness of Grantor secured by
this Deed of Trust as of the date of disbursement and shall bear interest at the Increased Rate from such date until paid by Grantor
in full. All such amounts shall be payable by Grantor immediately without demand. Nothing contained in this Section 4.04
shall be construed to require Beneficiary to incur any expense, make any appearance, or take any other action and any action taken
by Beneficiary pursuant to this Section 4.04 shall be without prejudice to any other rights or remedies available to Beneficiary
pursuant to any Loan Instrument or at law or in equity.

 

4.05      Waivers.
Grantor waives and releases (A) all benefits that might accrue to Grantor by virtue of any present or future laws exempting the
Secured Property, or any part of the proceeds arising from any sale of the Secured Property, from attachment, levy or sale under
execution, or providing for any stay of execution, exemption from civil process or extension of time; (B) all benefits that might
accrue to Grantor from requiring valuation or appraisal of any part of the Secured Property levied or sold on execution of any
judgment recovered for the Obligations; (C) all notices not herein or in any other Loan Instrument specifically required as a result
of Grantor's default or of Beneficiary's exercise, or election to exercise, any option pursuant to any of the Loan Instruments;
and (D) all rights of redemption to the extent that Grantor may lawfully waive same. At no time will Grantor insist upon, plead
or in any manner whatsoever claim or take any benefit or advantage of any stay or extension or moratorium law or any exemption
from execution or sale of the Secured Property or any part thereof, whenever enacted, now or at any time hereafter in force, which
may affect the covenants or terms of performance of the Loan Instruments. Similarly, Grantor will not claim, take or insist upon
any benefit or advantage of any law now or hereafter in force providing for the valuation or appraisal of the Secured Property
or any part thereof, prior to any sale or sales thereof which may be made pursuant to any provision hereof, or pursuant to the
decree, judgment or order of any court of competent jurisdiction. After any such sale or sales, to the extent permitted by law,
Grantor shall not claim or exercise any right under any law or laws heretofore or hereafter enacted to redeem the property so sold
or any part thereof. Grantor waives all benefits or advantages of any such law or laws, and covenants not to hinder, delay or impede
the execution of any power herein granted or delegated to Beneficiary. Grantor shall suffer and permit the execution of every such
power as though no such law or laws had been made or enacted. To the extent permitted by law, the Secured Property may be sold
in one parcel, as an entirety, or in such parcels, manner or order as Beneficiary in its discretion may decide. To the extent permitted
by law, neither Grantor nor the holder of any lien or encumbrance affecting the Secured Property or any part thereof may require
Beneficiary to marshall assets.

 

    	
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4.06      Prepayment.
Except as otherwise set forth herein, Grantor shall pay the charge provided in the Note for prepayment of the Obligations if for
any reason (including the acceleration of the due date of the Obligations by Beneficiary following the occurrence of an Event of
Default) any of such Obligations shall be due and payable or paid prior to the stated maturity date thereof, whether or not such
payment is made prior to or at any sale held pursuant to or by virtue of this Article IV. Beneficiary has relied on Grantor's
creditworthiness and its agreement to repay the Obligations in strict accordance with the terms set forth in the Loan Instruments,
and would not make the Loan without the promises by Grantor to make all payments due pursuant to the Loan Instruments and not to
prepay all or any part of the principal balance of the Note prior to the final maturity date thereof, except on the terms expressly
set forth herein and in the Note. Therefore, any prepayment of the Note, whether occurring as a voluntary prepayment by Grantor
or occurring upon an acceleration of the Note by Beneficiary or otherwise, will prejudice Beneficiary's ability to meet its obligations
and to earn the return on the funds advanced to Grantor, which Beneficiary intended and expected to earn when it made the Loan,
and will also result in other losses and additional expenses to Beneficiary. In consideration of Beneficiary making the Loan at
the interest rate and for the term set forth in the Note, Grantor expressly waives all rights it may have under applicable law
to prepay, without charge or premium, all or any part of the Note, either voluntarily or upon an acceleration of the Note by Beneficiary,
including an acceleration upon the making or suffering by Grantor of any transfer or disposition prohibited by Section 1.11.
If a prepayment of all or any part of the principal balance of the Note is made by or on behalf of Grantor, for any reason, whether
due to the voluntary acceptance by Beneficiary of a prepayment tendered by Grantor, or the acceleration of the Note by Beneficiary,
or in connection with any reinstatement of the Loan Instruments pursuant to any foreclosure proceedings, or any right of redemption
exercised by Grantor or any other party having the right to redeem or to prevent any foreclosure of this Deed of Trust, or upon
the consummation of any foreclosure sale, or under any other circumstances, Grantor or any other Person making any such prepayment
shall be obligated to pay, concurrently therewith, the Make-Whole Amount, as defined and as set forth in the Note, and the payment
of the Make-Whole Amount shall be a condition to the making of such prepayment, and the payment of the Make-Whole Amount shall
be secured by this Deed of Trust and the other Loan Instruments. Grantor shall pay the Make-Whole Amount without prejudice to the
right of Beneficiary to collect any other amounts due pursuant hereto or to declare a default hereunder. Nothing herein shall be
construed as permitting any partial prepayment of the Obligations, except with Beneficiary's prior written consent thereto obtained
in each instance.

 

    	
WCSR 31792892	47	Deed of Trust
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ARTICLE V

MISCELLANEOUS

 

5.01     Non-Waiver.
The failure of Beneficiary to insist upon strict performance of any term of this Deed of Trust or any other Loan Instrument shall
not be deemed to be a waiver of any term of this Deed of Trust or any other Loan Instrument. Grantor shall not be relieved of its
obligation to pay and perform the Obligations, at the time and in the manner provided in the Loan Instruments, by reason of (A)
a failure by Beneficiary to take any action to foreclose this Deed of Trust or otherwise enforce any of the provisions of this
Deed of Trust or of any other Loan Instrument (regardless of whether or not Grantor has requested Beneficiary to do so), (B) the
release, regardless of consideration, of the whole or any part of the Secured Property or any other security for the Obligations,
or (C) any agreement or stipulation between Beneficiary and any subsequent owner or owners of the Secured Property or any other
Person extending the time of payment or otherwise modifying or supplementing the terms of this Deed of Trust or any other Loan
Instrument, without first having obtained the consent of Grantor. Grantor shall pay and perform the Obligations at the time and
in the manner provided in this Deed of Trust and the other Loan Instruments as so extended, modified or supplemented, unless expressly
released and discharged by Beneficiary. Regardless of consideration, and without the necessity for any notice to or consent by
the holder of any subordinate lien, encumbrance, right, title or interest in or to the Secured Property, Beneficiary may release
any Person at any time liable for the payment or performance of the Obligations, or any part thereof, or any part of the security
held for the Obligations, and may extend the time of such payment or performance or otherwise modify the terms of any Loan Instrument,
including a modification of the interest rate payable on the principal balance of the Note, without in any manner impairing or
affecting any of the Loan Instruments or the lien thereof or the priority of this Deed of Trust, as so extended and modified, as
security for the Obligations over any such subordinate lien, encumbrance, right, title or interest. Beneficiary may resort for
the payment and performance of the Obligations to any other security held by Beneficiary in such order and manner as Beneficiary,
in its discretion, may elect. Beneficiary may take action to require payment and performance of the Obligations, or any part thereof,
or to enforce any term of this Deed of Trust, without prejudice to the right of Beneficiary thereafter to foreclose this Deed of
Trust. In addition to the rights and remedies stated in this Deed of Trust, Beneficiary may exercise every additional right and
remedy now or hereafter afforded by law or in equity. Each right of Beneficiary pursuant to this Deed of Trust shall be separate,
distinct and cumulative, and no such right shall be given effect to the exclusion of any other. No act of Beneficiary shall be
construed as an election to proceed pursuant to any one provision of this Deed of Trust to the exclusion of any other provision.

 

5.02     Sole Discretion
of Beneficiary. Whenever pursuant to this Deed of Trust or in any other Loan Instrument (A) Beneficiary exercises any right
to approve or disapprove or to give or withhold its consent, (B) any arrangement or term is to be satisfactory to Beneficiary,
or (C) any other decision or determination is to be made by Beneficiary, Beneficiary may give or withhold such approval or consent,
determine whether or not such arrangement or term is satisfactory, and make all other decisions or determinations, in Beneficiary’s
sole and absolute discretion, and Beneficiary's decision shall be final and conclusive except where this Deed of Trust or such
other Loan Instrument expressly provides to the contrary. If Grantor shall seek the consent or approval of Beneficiary pursuant
to this Deed of Trust and Beneficiary shall fail or refuse to give such consent or approval, Grantor shall not be entitled to any
damages for any withholding of such approval or consent by Beneficiary. Grantor's sole remedy shall be an action for injunctive
or declaratory relief, which remedy shall be available only in those cases where Beneficiary has expressly agreed not to unreasonably
withhold its consent or approval.

 

5.03      Legal Tender.
Grantor shall pay all payments of principal, interest or other amounts required or provided for herein in lawful money of the United
States of America at the time of payment, at the above described office of Beneficiary or at such other place as Beneficiary may
from time to time designate.

 

5.04     No Merger
or Termination. If both the lessor's and Lessee's estates under any Lease or any portion thereof which constitutes a part of
the Secured Property shall at any time become vested in one owner, this Deed of Trust and the lien created hereby shall not be
destroyed or terminated by the application of the doctrine of merger and in such event, Beneficiary shall continue to have and
enjoy all of its rights and privileges as to the separate estates. In addition, the foreclosure of this Deed of Trust shall not
destroy or terminate any Lease or sublease then existing and created by Grantor, whether by application of the law of merger or
as a matter of law or otherwise, unless Beneficiary or any purchaser at any sale related to such foreclosure shall so elect. No
act by or on behalf of Beneficiary or any such purchaser shall constitute a termination of any Lease or sublease, unless Beneficiary
or such purchaser shall give written notice thereof to the related Lessee or sublessee.

 

    	
WCSR 31792892	48	Deed of Trust
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5.05     Discontinuance
of Actions. If Beneficiary shall enforce any right pursuant to this Deed of Trust by foreclosure, sale, entry or otherwise
and discontinue or abandon such enforcement for any reason or any such proceedings shall have been determined adversely, then,
in each such case, Grantor and Beneficiary shall be restored to their former positions and rights hereunder, and the Secured Property
shall remain subject to the lien of this Deed of Trust.

 

5.06     Headings.
The headings of the Sections and other subdivisions of this Deed of Trust are for the convenience of reference only, are not to
be considered a part hereof, and shall not limit or otherwise affect any of the terms hereof.

 

5.07     Notice to
Parties. All notices and demands or other communications hereunder shall be in writing, and shall be deemed to have been sufficiently
given or served for all purposes when presented personally or sent by generally recognized overnight delivery service, with postage
prepaid, addressed to Grantor or Beneficiary or Trustee, as applicable, at the addresses stated below, or at such other address
of which either Grantor or Beneficiary or Trustee may hereafter notify the other in writing:

 

	Grantor:		Wake Forest Apartments LLC
	 		19950 West Country Club Drive, Suite 800
	 		Aventura, Florida 33180
	 	 	Attn:  Richard Ross
	 	 	 
	with a copy to:	 	Greenspoon Marder
	 	 	100 W. Cypress Creek Road, Suite 700
	 	 	Fort Lauderdale, FL  33309
	 	 	Attn:  Barry E. Somerstein, Esq.
	 	 	 
	Beneficiary:	 	NEW YORK LIFE INSURANCE COMPANY
	 	 	c/o New York Life Investment Management LLC
	 	 	51 Madison Avenue
		 	New York, New York 10010-1603
	 	 	Attn:   Real Estate Group
	 	 	Director – Loan Administration Division
	 	 	Loan No. 374-0551
	 	 	 
	With a copy to:	 	NEW YORK LIFE INSURANCE COMPANY
	 	 	Office of the General Counsel
	 	 	51 Madison Avenue
		 	New York, New York 10010-1603
	 	 	Attn:   Managing Director – Real Estate Section
	 	 	Loan No. 374-0551

 

    	
WCSR 31792892	49	Deed of Trust
Loan No. 374-0551

    	 

    

 

	Trustee:	 	The Fidelity Company
	 	 	c/o Womble Carlyle Sandridge & Rice, LLP
	 	 	One West Fourth Street
	 	 	Winston-Salem, North Carolina 27101
	 	 	Attn:  Hardin G. Halsey

 

Each notice or demand so given or served
shall be deemed given and effective, (A) if personally delivered, on the day of actual delivery or refusal and (B) if sent by generally
recognized overnight delivery service, on the next business day. Notwithstanding the foregoing, service of any notice of default
or notice of sale provided or required by law in connection with Beneficiary’s exercise of any of its remedies following
an Event of Default shall, if mailed as required by law, be deemed given and effective on the date of mailing.

 

5.08     Successors
and Assigns Included In Parties. Subject to the provisions of Section 1.11, each reference herein to Grantor or Beneficiary
shall mean and include, the heirs, legal representatives, successors and assigns of such Person. All covenants and agreements contained
in this Deed of Trust by or on behalf of Grantor shall bind and inure to the benefit of Grantor’s heirs, legal representatives,
successors and assigns, and all covenants and agreements by or on behalf of Beneficiary shall bind and inure to the benefit of
Beneficiary’s successors and assigns.

 

5.09     Changes
and Modifications. This Deed of Trust may only be changed or modified by an agreement in writing, signed by both Grantor and
Beneficiary.

 

5.10     Applicable
Law. This Deed of Trust shall be construed and enforced according to the law of the State, other than such law with respect
to conflicts of laws.

 

5.11     Invalid
Provisions to Affect No Others. The unenforceability or invalidity of any provision or provisions of this Deed of Trust as
to any Persons or circumstances shall not render that provision or those provisions unenforceable or invalid as to any other Persons
or circumstances, and all provisions hereof, in all other respects, shall remain valid and enforceable.

 

5.12     Usury Savings
Clause. Grantor and Beneficiary intend to conform strictly to the usury laws now or hereafter in force in the State and all
interest and loan charges, including without limitation, any Late Charge (as defined in the Note), payable pursuant to the Note,
this Deed of Trust or any other Loan Instrument, unless exempt from such laws, shall be subject to reduction to the amount equal
to the maximum non-usurious amount allowed pursuant to such usury laws as now or hereafter construed by the courts having jurisdiction
over such matters. The aggregate of all interest and loan charges (whether designated as interest, service charges, points or otherwise)
contracted for, chargeable or receivable pursuant to the Note, this Deed of Trust or any other Loan Instrument shall under no circumstances
exceed the maximum non-usurious rates of interest and loan charges which Beneficiary may charge under applicable law from time
to time. Any interest and loan charges in excess of the maximum amount permitted by law shall be deemed a mistake and shall be
canceled automatically and, if theretofore paid, Beneficiary shall, at its option, either rebate such amounts to Grantor or credit
such amounts to the principal amount of the Obligations, or if all such principal has been repaid, Beneficiary shall rebate such
excess to Grantor.

 

    	
WCSR 31792892	50	Deed of Trust
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5.13     No Statute
of Limitations. To the full extent permitted by law, Grantor hereby waives the pleading of any statute of limitations as a
defense to any or all of the Obligations.

 

5.14     Late Charges.
If Grantor fails to pay, when due, without regard to any grace period, any installment of interest or principal, any payment due
pursuant to Section 1.04 or any deposit or reserve due pursuant to this Deed of Trust or any other Loan Instrument, Grantor
shall pay to Beneficiary (unless waived by Beneficiary) the Late Charge as defined and described in the Note; provided, however,
no Late Charge shall apply to the balloon payment due on the Maturity Date. Each such Late Charge, if not previously paid, shall,
at the option of Beneficiary, be added to and become part of the succeeding monthly payment to be made pursuant to the Note, and
shall be secured by this Deed of Trust.

 

5.15     Waiver of
Jury Trial. To the extent not prohibited by applicable law, Grantor waives any right to trial by jury with respect to any action
or proceeding (a) brought by Grantor, Beneficiary or any other Person relating to (i) the Obligations or any understandings or
prior dealings between Grantor and Beneficiary or (ii) the Loan Instruments, or (b) to which Beneficiary is a party.

 

5.16     Continuing
Effectiveness. This Deed of Trust shall secure all advances made pursuant to the Loan Instruments, all rearrangements and renewals
of the Obligations and all extensions as to the time of payment thereof, whether or not such advances, rearrangements, renewals
or extensions are evidenced by new promissory notes or other instruments hereafter executed and irrespective of whether filed or
recorded. The execution of this Deed of Trust shall not impair or affect any other security which may be given to secure the payment
of the Obligations, and all such additional security shall be considered as cumulative. The taking of additional security, execution
from time to time of partial releases as to the Secured Property or any extension of time of payment of the Obligations shall not
diminish the force, effect or lien of this Deed of Trust, and shall not affect or impair the liability of any maker, surety or
endorser for the payment of the Obligations.

 

5.17     Time
of Essence. Time is of the essence as to Grantor’s performance of each provision of this Deed of Trust, the Note and
the other Loan Instruments. Grantor agrees that where, by the terms of this Deed of Trust, the Note or any other Loan Instrument,
a day is named or a time is fixed for the payment of any sum of money or the performance of any obligation by Grantor, the day
and/or time stated enters into the consideration and is of the essence of the whole contract.

 

5.18      Non-Recourse.
If an Event of Default has occurred (and regardless of whether or not it has been cured), Beneficiary shall have all rights provided
in the Note, this Deed of Trust or any other Loan Instrument or at law or in equity, and shall have full recourse to the Secured
Property and to any other collateral given by Grantor to secure any or all of the Obligations, provided that any judgment obtained
by Beneficiary in any proceeding to enforce such rights shall be enforced only against the Secured Property and such other collateral.
Notwithstanding the foregoing, Beneficiary shall not in any way be prohibited from naming Grantor or any of its successors or assigns
or any Person holding under or through them as parties to any actions, suits or other proceedings initiated by Beneficiary to enforce
such rights or to foreclose the lien of this Deed of Trust or to otherwise realize upon any other lien or security interest created
in any other collateral given to secure the payment of the Obligations. The foregoing restriction shall not apply to, and Grantor
shall be personally liable for, and Beneficiary may seek and enforce judgment against Grantor for:

 

    	
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(A)                        any and all losses, claims,
damages, costs, expenses and/or liabilities, including, reasonable attorneys’ fees and expenses, incurred by Beneficiary:

 

(1) relating to or as a result
of any material misstatement of fact (a) by or on behalf of, Grantor or Guarantor to Beneficiary
or Beneficiary’s advisor relating to the Loan or (b) contained in any Loan Instrument,

 

(2) relating
to or as a result of fraud relating to the Loan, the Loan Instruments, or any documents, materials
or other information delivered by or on behalf of Grantor or Guarantor to Beneficiary, Beneficiary’s advisor or their respective
counsel relating to the Loan,

 

(3) relating
to or as a result of misapplication of (a) insurance proceeds in a manner which is not in accordance with the provisions of the
Loan Instruments, (b) condemnation awards in a manner which is not in accordance with the provisions of the Loan Instruments, (c)
trust funds or Lessee security deposits which are received by or on behalf of Grantor and are neither turned over to Beneficiary
or used in compliance with the Loan Instruments, or (d) Rents, issues, profits or other proceeds from the Secured Property received
by, or on behalf of, Grantor or Guarantor and not otherwise applied to the Loan or to payment of Secured Property operating expenses
as required by the Loan Instruments,

 

(4) relating to or as a result
of the breach of any representation or warranty contained in the Sections of this Deed of Trust pertaining to environmental matters,
including Section 1.05E(4), 2.03C or 2.03D, or any default with respect to any covenant contained in the Sections
of this Deed of Trust pertaining to environmental matters including Section 1.05E,

 

(5) relating
to or as a result of any default with respect to Grantor's covenant to pay Impositions, pursuant to Section 1.02 hereof,
or insurance premiums, pursuant to Section 1.03 hereof other than Impositions or insurance premiums accruing during periods
after which Grantor no longer has title to the Secured Property by reason of foreclosure of this Deed of Trust or tender of a deed
in lieu of foreclosure of this Deed of Trust to Beneficiary or with respect to Grantor’s covenant to obtain and maintain
the insurance, including without limitation, the Terrorism Insurance, required by this Deed of Trust through the date of foreclosure
of this Deed of Trust or the date Grantor tenders a deed in lieu of foreclosure of this Deed of Trust to Beneficiary of the Secured
Property,

 

    	
WCSR 31792892	52	Deed of Trust
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(6) arising
from, in respect of, as a consequence of, or in connection with: (1) the existence of any circumstance or the occurrence of any
action described in Section 1.05E(1), (2) claims asserted by any Person (including any Governmental Agency) in connection with,
or in any way arising out of, the presence, storage, use, disposal, generation, transportation or treatment of any Hazardous Material
in, on, or under or about the Secured Property, or (3) the violation or claimed violation of any law relating to any Hazardous
Material or any other Environmental Requirement in regard to the Secured Property, regardless of whether or not such violation
or claimed violation occurred prior to or after the date of this Deed of Trust or whether or not such violation or claimed violation
occurred prior to or after the time that Grantor became the owner of the Secured Property, and/or

 

(7) as a result of any intentional,
bad faith waste of the Secured Property committed by Grantor or its agents (such damages to include all repair costs incurred by
Beneficiary), (For purposes of this subparagraph, “bad faith waste” is intended to mean
the neglect or misconduct of Grantor resulting in material damage to the Secured Property or any portion thereof);

 

(B)        all outstanding principal,
interest and other Obligations, including the Make-Whole Amount:

 

(1) if there shall be a violation
of Section 1.11 of this Deed of Trust that is not waived or consented to by Beneficiary in writing
and/or

 

(2) in
the event that (a) any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar
federal or state law, shall be filed by, consented to or acquiesced in by Grantor or any Guarantor and/or if any proceeding for
the dissolution, liquidation or receivership of Grantor or any Guarantor shall be instituted by Grantor or any Guarantor and/or
(b) Grantor or any Guarantor shall be the subject of any petition or proceeding for an involuntary bankruptcy, reorganization or
arrangement pursuant to federal bankruptcy law, or any similar federal or state law and/or the subject of any liquidation, dissolution,
receivership or other similar proceeding, in which Grantor or any Guarantor or any affiliate of such parties colludes with, or
otherwise assists, the petitioning party or solicits or causes to be solicited petitioning creditors; and/or

 

(3) if there shall be a violation
of Section 5.20 of this Deed of Trust and/or

 

4) if this Deed of Trust or any
of the other Loan Instruments are deemed fraudulent conveyances or preferences or are otherwise deemed void pursuant to any principles
limiting the rights of creditors, whether such claims, demands or assertions are made under the United States Bankruptcy Code (as
amended or replaced from time to time), including, without limitation, under Sections 544, 547 or 548 thereof, or under any applicable
state fraudulent conveyance statues or similar laws; and

 

    	
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(C)       in the event of a loss
which would be covered by the Terrorism Insurance required by the Loan Instruments, an amount equal to the deductible on
such Terrorism Insurance, which amount shall either be applied by Beneficiary to the debt secured by this Deed of Trust or disbursed
by Beneficiary for the repair and restoration of the Secured Property, all in accordance with the terms of the Loan Instruments.

 

The restriction on enforcement
contained in the first sentence of this Section 5.18 shall not apply to the Environmental Indemnity Agreement of even date
herewith executed by Grantor and the other indemnitors, if any, in favor of Beneficiary and/or to the obligations of any Guarantor.
It is expressly understood and agreed, however, that nothing contained in this Section 5.18 shall (y) in any manner or way
constitute or be deemed to be a release of the Obligations or otherwise affect or impair the enforceability of the liens, assignments,
rights and security interests created by this Deed of Trust or any of the other Loan Instruments or any future advance or any related
agreements or (z) preclude Beneficiary from foreclosing this Deed of Trust or from exercising its other remedies set forth in this
Deed of Trust or the Assignment, or from enforcing any of its rights and remedies in law or in equity (including injunctive and
declaratory relief, restraining orders and receivership proceedings), except as provided in this Section 5.18. All
matters as to which this Section 5.18 provides that Grantor is personally liable shall be referred to herein as the “Non-Recourse
Exceptions”.

 

5.19    Non-Business
Days. If any payment required hereunder or under any other Loan Instrument becomes due on a Saturday, Sunday, or legal holiday
in the state in which the Premises are located, then such payment shall be due and payable on the immediately following business
day.

 

5.20 Single
Purpose Entity. Grantor represents, warrants and covenants that at all times since its formation and thereafter:

 

(A)       Each of Grantor
and its general partner or managing member, as applicable, does not own and will not own, either directly or indirectly, any asset
or property other than (1) the Secured Property, (2) with respect to Grantor, incidental personal property necessary for the ownership
or operation of the Secured Property and (3) with respect to the general partner or managing member of Grantor, incidental personal
property necessary for the ownership or operation of Grantor’s general partner or managing member,

 

(B)       Each of Grantor
and its general partner or managing member, as applicable, has not engaged in and will not engage in any business other than the
ownership, management and operation of the Secured Property (with respect to Grantor) or the ownership of the general partnership
or managing member interest in Grantor (with respect to Grantor’s general partner or managing member, as applicable), and
each of Grantor and its general partner or managing member, as applicable, will conduct and operate its business as presently conducted
and operated.

 

    	
WCSR 31792892	54	Deed of Trust
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(C)       Each of Grantor
and its general partner or managing member, as applicable, has not entered and will not enter into any contract or agreement with
any affiliate of Grantor, any constituent party of Grantor or any affiliate of any constituent party, except upon terms and conditions
that are intrinsically fair, commercially reasonable and substantially similar to those that would be available on an arms-length
basis with unaffiliated third parties.

 

(D)       Each of Grantor
and its general partner or managing member, as applicable, has not incurred and will not incur any indebtedness, secured or unsecured,
direct or indirect, absolute or contingent (including guaranteeing any obligation), other than (1) the Obligations and (2) trade
and operational debt incurred in the ordinary course of business with trade creditors in amounts as are normal and reasonable under
the circumstances provided that such debt is paid within sixty (60) days of the date it is incurred. No indebtedness other than
the Obligations may be secured (subordinate or pari passu) by the Secured Property.

 

(E)       Each of Grantor
and its general partner or managing member, as applicable, has not made and will not make any loans or advances to any third party
(including any affiliate, constituent party or any affiliate of any constituent party), and have not and will not acquire obligations
or securities of its affiliates or any constituent party.

 

(F)       Each of Grantor
and its general partner or managing member, as applicable, has been, is and intends to remain solvent and each of Grantor and its
general partner or managing member, as applicable, have and will pay its own debts and liabilities from its assets (to the extent
of such funds and assets), as the same shall become due.

 

(G)       Each of Grantor
and its general partner or managing member, as applicable, has done or caused to be done and will do or cause to be done all things
necessary to observe organizational formalities and preserve its existence, and each of Grantor and its general partner or managing
member, as applicable, has not and will not, nor has Grantor or its general partner or managing member, as applicable, permitted
nor will Grantor or its general partner or managing member, as applicable, permit any of its constituent parties, to amend, modify
or otherwise change the partnership certificate, partnership agreement, articles of incorporation, bylaws, articles of organization,
operating agreement, trust agreement or other organizational document of Grantor, its general partner or managing member, as applicable,
or such constituent party in a manner which would result in a breach of any of the representations, warranties or covenants set
forth in this Section 5.20 or in a manner that would otherwise adversely affect Grantor’s and its general partner’s
or managing member’s, as applicable, single purpose status.

 

(H)       Each of Grantor
and its general partner or managing member, as applicable, has and will maintain all of its books, records, financial statements
and bank accounts separate from those of its affiliates, any constituent party and any other Person; provided, however, Grantor
or its general partner or managing member, as applicable, may include its financial statements as part of a consolidated financial
statement if (i) such statements contain a notation that makes clear that Grantor or its general partner or managing member, as
applicable is a separate entity and that the assets and credit of Grantor or its general partner or managing member, as applicable,
are not available to satisfy liabilities of any other Person and that the assets and credit of such other Person are not available
to satisfy liabilities of Grantor or its general partner or managing member, as applicable; each of Grantor and its general partner
or managing member, as applicable, has and will file its own tax returns as required by applicable state and federal law; each
of Grantor and its general partner or managing member, as applicable, has maintained and shall maintain its books, records, resolutions
and agreements as official records.

 

    	
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(I)       Each of Grantor
and its general partner or managing member, as applicable, has been and will be, and at all times has and will hold itself out
to the public as, a legal entity separate and distinct from any other entity (including any affiliate of Grantor or its general
partner or managing member, as applicable, any constituent party of Grantor or its general partner or managing member, as applicable,
or any affiliate of any constituent party), has corrected and will correct any known misunderstanding regarding its status as a
separate entity, has conducted and will conduct business in its own name, has not identified and shall not identify itself or any
of its affiliates as a division or part of the other and has maintained and shall maintain and utilize separate stationery, invoices
and checks.

 

(J)       Each of Grantor
and its general partner or managing member, as applicable, has not assumed or guaranteed and will not assume or guaranty the debts
of any other Person, has not held and will not hold itself out to be responsible for the debts of any other Person, and has not
and will not otherwise pledge its assets for the benefit of any other Person or hold out its credit as being available to satisfy
the obligations of any other Person.

 

(K)       Each of Grantor
and its general partner or managing member, as applicable, has maintained and intends to maintain adequate capital as reasonably
determined by Grantor for the normal obligations reasonably foreseeable in a business of its size and character and in light of
its contemplated business operations.

 

(L)       Neither Grantor
nor its general partner, or nor its managing member, as applicable, nor any of their respective constituent parties has caused
or will cause or permit the dissolution, winding up, liquidation, consolidation or merger in whole or in part, of Grantor or its
general partner or managing member, as applicable; and neither Grantor nor its general partner, nor its managing member, as applicable,
nor any of their respective constituent parties has disposed or will dispose of all or substantially all of the assets of Grantor
or its general partner or managing member, as applicable, and has not changed and will not change Grantor’s or its general
partner’s or managing member’s, as applicable, legal structure.

 

(M)       Each of Grantor
and its general partner or managing member, as applicable, has not commingled and will not commingle the funds and other assets
of Grantor or its general partner or managing member, as applicable, with those of any affiliate or constituent party or any other
Person.

 

(N)       Each of Grantor
and its general partner or managing member, as applicable, have maintained and will maintain its assets in such a manner that it
will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any affiliate or constituent
party, or any other Person.

 

    	
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(O)       Each of Grantor
and its general partner or managing member, as applicable, does not and will not hold itself out to be responsible for the debts
or obligations of any other Person.

 

(P)       Each of Grantor
and its general partner or managing member, as applicable, does and shall continue to (i) allocate fairly and reasonably any overhead
and expense for office space shared with any affiliated Person, (ii) pay any liabilities, including salaries of its employees,
out of its own funds and not from funds of any affiliated Person and/or (iii) maintain a sufficient number of employees (which
may be zero) in light of its contemplated business operations.

 

(Q)       Each of Grantor
and its general partner or managing member, as applicable shall not, without the prior unanimous consent of all of Grantor’s
and its general partner’s or managing member’s, as applicable, (i) members and managers (in the event that Grantor,
or its general partner or managing member, as applicable is a limited liability company), (ii) partners (in the event that Grantor
or its general partner or managing member, as applicable, is a general partnership), (iii) general partner (in the event that Grantor
or its general partner or managing member, as applicable, is a limited partnership) or (iv) shareholders or board of directors
(in the event that Grantor or its general partner or managing member, as applicable, is a corporation) and of the Independent Director
(as defined below) or Independent Manager (as defined below), as applicable, institute proceedings to be adjudicated bankrupt or
insolvent, or consent to the institution of such proceedings against it, or file a petition seeking, or consent to, reorganization
or relief, under any chapter of the Bankruptcy Code (Title 11 of the United States Code), as amended, or any other bankruptcy or
similar laws, or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator or similar official of it
or of a substantial part of its assets or property, or make an assignment for the benefit of creditors, or admit in writing its
inability to pay its debts generally as they become due, or take any action in furtherance of any of the foregoing. Without limiting
the foregoing and notwithstanding any other provision of this Deed of Trust or of any of the organizational documents of Grantor
or any provision of law that otherwise so empowers the Grantor, so long as any Obligations are outstanding, Grantor shall not be
authorized or empowered to, nor shall Grantor, without the prior unanimous written consent of the Independent Manager and/or Independent
Director, as the case may be, institute proceedings to have Grantor adjudicated bankrupt or insolvent, or consent to the institution
of bankruptcy or insolvency proceedings against Grantor or file a voluntary petition seeking, or consent to, reorganization or
relief with respect to Grantor under any applicable federal or state law relating to bankruptcy, or seek or consent to the appointment
of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of Grantor or a substantial part of its
property, or make any assignment for the benefit of creditors of Grantor, or admit in writing Grantor’s inability to pay
its debts generally as they become due, or to the fullest extent permitted by law, to take any action in furtherance of any such
action. To the fullest extent permitted by law, for so long as any Obligations are outstanding, Grantor shall not be authorized
or empowered, nor shall Grantor consolidate, merge, dissolve, liquidate or sell all or substantially all of Grantor’s assets
(other than such sales, if any, as are permitted hereunder).

 

(R)       Each of Grantor
and its general partner or managing member, as applicable, shall not violate or cause to be violated the assumptions made with
respect to Grantor and its general partner or managing member, as applicable, and their respective direct or indirect constituent
entities in any opinion letter pertaining to substantive consolidation delivered to Beneficiary in connection with the Loan, if
any.

 

    	
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(S)       Within forty-five
(45) days after the end of each fiscal quarter of Grantor, Grantor shall deliver to Beneficiary a certification executed by an
officer of Grantor certifying to Beneficiary that, as of such date, Grantor and its general partner or managing member, as applicable,
complies with the provisions of Section 5.20 of this Deed of Trust.

 

(T)       Each of Grantor
and its general partner(s) or managing member(s), as applicable, shall be formed in Delaware; and at all times, Grantor’s
and its general partner(s)’ or managing member’s, as applicable, limited liability company agreement, limited partnership
agreement or articles or incorporation, as applicable, shall contain the provisions set forth in Section 5.20(A)-(U) of
this Deed of Trust or as otherwise approved in writing by Beneficiary. So long as any Obligations are outstanding, none of such
instruments shall be amended, altered or changed without the prior written consent of Beneficiary.

 

    	
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(U)       In the event
that Grantor is a limited liability company, Grantor shall at all times cause there to be (i) at least one duly appointed manager
(an “Independent Manager”) of Grantor, and (ii) unless the managing member is an Acceptable Delaware LLC, a corporation
or other entity approved by Beneficiary, at least one springing non-economic member that will become a member of Grantor upon the
dissolution or withdrawal or similar event as to the sole remaining member of Grantor and that will satisfy the requirements of
Delaware law such that the dissolution or withdrawal or similar event as to the sole remaining member of Grantor will not cause
the dissolution of Grantor (the “Springing Member”). In the event that Grantor is a corporation, Grantor shall at all
times cause there to be at least one duly appointed director (an “Independent Director”) of Grantor. In the event that
Grantor is a partnership, in the case of a limited partnership, Grantor shall have as its only general partner (and in the case
of a general partnership, Grantor shall have as each of its general partners), a limited liability company or corporation that
complies with the provisions of Sections 5.20(A)-(U) of this Deed of Trust. The Independent Manager or Independent Director,
as applicable, shall be satisfactory to Beneficiary, and must be a natural person employed by, or an entity owned and controlled
by a nationally recognized corporate service provider and shall not at the time of initial appointment, nor at any time during
the preceding five (5) years have been: (1) a stockholder, director, officer, employee, partner, attorney or counsel of Grantor,
or any affiliate of Grantor; (2) a customer, supplier or other person who derives more than ten percent (10%) of its purchases
or revenues from its activities with Grantor or any affiliate of Grantor; (3) a Person or other entity controlling or under common
control with any such stockholder, partner, customer, supplier or other Person; or (4) a member of the immediate family of any
such stockholder, director, officer, employee, partner, customer, supplier or other Person. As used in this paragraph, the term
“control” means the possession, directly or indirectly, of the power to direct or cause the direction of management,
policies or activities of a Person or entity, whether through ownership of voting securities, by contract or otherwise. The Independent
Manager’s, Springing Member’s and/or Independent Director’s vote shall be required only for Material Actions
(as defined below) and those matters specifically requiring its vote in Grantor’s organizational documents, all as approved
by Beneficiary. As used herein, “Material Actions” shall mean (a) any proposed insolvency or bankruptcy proceeding
of Grantor, (b) any dissolution or liquidation of Grantor, and (c) any amendment or modification of any provision of Grantor’s
organizational documents relating to company purpose or Grantor’s bankruptcy-remote status. The affirmative vote or written
consent of the Independent Manager, Springing Member or Independent Director, as applicable, shall be required for the Grantor
to approve or take any Material Action. No termination or change of the Independent Manager, Springing Member or Independent Director,
as applicable, shall be made without giving Beneficiary at least five (5) Business Days prior written notice, which notice shall
include a copy of a resume for such proposed replacement Independent Manager, Springing Member or Independent Director, as applicable,
that reflects that such individual meets the requirements contained herein; provided further, that Beneficiary shall have the right
to object to the appointment of said replacement and in the event of such objection, the proposed replacement shall not be admitted.
Notwithstanding the foregoing, any current Independent Manager, Springing Member or Independent Director, as applicable, that receives
notice of the termination of its duties shall provide a copy of said notice to Beneficiary within five (5) days of receipt thereof.
To the fullest extent permitted by applicable law, and notwithstanding any duty otherwise existing at law or in equity, the Independent
Manager, Springing Member or Independent Director, as applicable, shall consider only the interests of Grantor (including its creditors)
and the members, partners or shareholders of Grantor, as applicable (“Constituent Owners”), in acting or otherwise
voting on any Material Actions or matters provided for in Grantor’s organizational documents (which such fiduciary duties
to the Constituent Owners and Grantor (including its creditors), in each case, shall be deemed to apply solely to the extent of
their respective economic interests in such entity, exclusive of (x) all other interests (including, without limitation, all other
interests of the Constituent Owners), (y) the interests of other affiliates of the Constituent Owners or of Grantor, as applicable,
and (z) the interests of any group of affiliates of which the Constituent Owners or Grantor, as applicable, is a part)). Regardless
of the solvency of Grantor, the Independent Manager, Springing Member or Independent Director, as applicable, shall owe duties
to protect creditors in the enforcement of their contractual rights, including all remedies. Other than as provided above, the
Independent Manager, Springing Member or Independent Director, as applicable, shall not have any fiduciary duties to any Constituent
Owners, any directors or managers of Grantor, as applicable, or any other Person, provided, however, that the foregoing shall not
eliminate the implied contractual covenant of good faith and fair dealing under applicable law. To the fullest extent permitted
by applicable law, an Independent Manager, Springing Member or Independent Director shall not be liable to Grantor, any Constituent
Owner or any other person for breach of contract or breach of duties (including fiduciary duties), unless such Independent Manager,
Springing Member or Independent Director acted in bad faith or engaged in willful misconduct. All other matters as to the Independent
Manager, Springing Member and/or Independent Director shall be set forth in the organizational documents of Grantor and shall be
satisfactory to Beneficiary.

 

ARTICLE VI

SPECIAL STATE PROVISIONS

 

The provisions of
this Article VI are an integral part of this Deed of Trust. In the event of any inconsistencies between the terms and conditions
of this Article VI and the other provisions of this Deed of Trust, the terms and conditions of Article VI shall be controlling.

 

6.01       Maturity
Date. The Maturity Date of the Note, unless renewed or extended, is February 10, 2021.

 

    	
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6.02       Attorneys’
Fees . In case the Note or this Deed of Trust or any other Loan Instrument should be placed in the hands of an attorney at
law for collection or enforcement, Grantor agrees to pay all costs of collection or enforcement including reasonable attorneys’
fees. Notwithstanding anything herein or in any other Loan Instrument to the contrary, whenever the term “reasonable attorneys’
fees” or other similar phrase is used it shall mean attorney and paralegal fees actually incurred (based on the actual number
of hours worked by legal counsel and paralegals multiplied by the usual and customary hourly rate then in effect), notwithstanding
any statutory presumption set forth in N.C.G.S. §6-21-2 or otherwise to the contrary. The foregoing provision shall not be
deemed to limit the obligation to pay out-of-pocket expenses and costs as provided in the Loan Instruments.

 

6.03       Interest
Before and After Judgment . Following an Event of Default, the Obligations evidenced by the Note, the other Obligations, all
accrued and unpaid interest thereon and all other sums evidenced and/or secured by the Loan Instruments shall bear interest at
the Increased Rate both before and after any judgment on the Obligations to the extent permitted by applicable law.

 

6.04       Power of
Sale . Upon the occurrence of an Event of Default, the Beneficiary may notify the Trustee to exercise the power of sale granted
hereunder and upon such notification it shall be lawful for and the duty of the Trustee, and the Trustee is hereby authorized and
empowered to expose to sale and to sell the Secured Property or any part thereof at public sale to the highest bidder for cash,
in compliance with all applicable requirements of North Carolina law then governing the exercise of powers of sale contained in
deeds of trust and upon such sale, the Trustee shall collect the purchase proceeds and convey title to the portion of the Secured
Property so sold to the purchaser in fee simple. In the event of a sale of the Secured Property or any part thereof, the proceeds
of sale shall be applied in the following order of priority: (i) to the payment of all costs and expenses for and in connection
with the effecting of such sale and all proceedings (either before the Clerk of Superior Court or otherwise) for such sale, including
a commission for the Trustee’s services as hereinafter provided and including reasonable attorney’s fees incurred by
the Trustee for legal services actually performed; (ii) to the reimbursement of Beneficiary for all sums expended or incurred by
the Beneficiary under the terms of this Deed of Trust or to establish, preserve or enforce this Deed of Trust or to collect or
enforce the Obligations secured hereby (including, without limitation, reasonable attorneys’ fees as provided herein or in
any instruments evidencing the Obligations secured hereby); (iii) to the payment of the Obligations secured hereby and interest
thereon and all other indebtedness hereby secured; and (iv) the balance, if any, shall be paid to the parties lawfully entitled
thereto. The Grantor agrees that in the event of a sale hereunder, the Beneficiary shall have the right to bid at such sale and
shall have the right to credit all or any portion of the Obligations secured hereby against the purchase price. The Trustee shall
have the right to designate the place of sale in compliance with applicable law and the sale shall be held at the place designated
by the notice of sale. The Trustee may require the successful bidder at any sale to deposit immediately with the Trustee cash or
certified check or cashier's check in an amount up to five percent (5.0%) of the bid provided notice of such deposit requirement
is published as required by law. The bid may be rejected if the deposit is not immediately made. Such deposit shall be refunded
in case of an upset bid or if the Trustee is unable to convey the portion of the Secured Property so sold to the bidder because
the power of sale has been terminated in accordance with applicable law. If the purchaser fails to comply with its bid, the deposit
may, at the option of the Trustee be retained and applied to any damages incurred by reason of such default (including, without
limitation, liability to the extent that the final sales price is less than the bid plus all the costs of resale as provided in
N.C. Gen. Stat. Section 45-21.30, as amended) or may be deposited with Clerk of Superior Court. In all other cases, the deposit
shall be applied to the purchase price. Pursuant to Section 25-9-604 of the North Carolina General Statutes (or any amendment thereto),
the Trustee is expressly authorized and empowered to expose to sale and sell together with the real estate any portion of the Secured
Property which constitutes personal property. If personal property is sold hereunder, it need not be at the place of sale. The
Secured Property may be sold in such parcels or lots as the Trustee may determine without regard to principles of marshalling and
the Secured Property may be sold at one sale or in multiple sales as determined by the Trustee. The exercise of the power of sale
hereunder by the Trustee on one or more occasions shall not be deemed to extinguish the power of sale which power of sale shall
continue in full force and effect until all of the Secured Property shall have been finally sold and properly conveyed to the purchasers
at the sales. The Trustee shall be entitled to receive a reasonable commission for either a completed or uncompleted foreclosure
based upon the actual number of hours worked by Trustee, its attorneys and paralegals, at their usual and customary hourly rates
then in effect. In addition, Grantor shall pay all out-of-pocket expenses actually incurred by the Trustee. Subject to the requirements
and limits imposed by law, the Trustee may postpone sale of all or any portion of the Secured Property by public announcement at
such time and place of sale, and from time to time thereafter may postpone such sale by public announcement or subsequently noticed
sale, and without further notice make such sale at the time fixed by the last postponement, or may, in its discretion, give a new
notice of sale.

 

    	
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6.05       Environmental
Laws. The listing of Environmental Laws in Paragraph (b) of the definition of “Hazardous
Materials” of this Deed of Trust, is amended to also include the following State laws: The Oil Pollution and Hazardous
Substances Control Act of 1978, N.C.G.S. § 143 215.75 et seq.; The North Carolina Inactive Hazardous Sites Act, N.C.G.S. §
130A-310, et seq.; The North Carolina Water and Air Resources Act, N.C.G.S. § 143-211, et seq.; The North Carolina Drinking
Water Act, N.C.G.S. § 130A-311, et seq.; and the North Carolina Solid Waste Management Act, N.C.G.S. § 130A-290, et seq.;
and the regulations promulgated pursuant to said laws, all as amended.

 

6.06       Substitution
of Trustee. Beneficiary shall at any time have the irrevocable right to remove the Trustee herein named without notice or cause
and to appoint his successor by an instrument in writing, duly acknowledged, in such form as to entitle such written instrument
to record in North Carolina, and in the event of the death or resignation of the Trustee herein named, Beneficiary shall have the
right to appoint his successor by such written instrument, and any Trustee so appointed shall be vested with the title to the Secured
Property hereinbefore described, and shall possess all the powers, duties and obligations herein conferred on the Trustee in the
same manner and to the same extent as though he were named herein as Trustee.

 

6.07       Waiver.
Grantor hereby waives any rights or remedies on account of any extensions of time, releases granted or other dealings between Beneficiary
and any subsequent owner of the Secured Property as said activities are contemplated or otherwise addressed in N.C. Gen. Stat.
Sec. 45-45.1 or any similar or subsequent law.

 

    	
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6.08       Deed of
Trust as Financing Statement. As to those items of personal property which are or are to become affixed to the Secured Property
and/or the Improvements, and all products and proceeds thereof, this Deed of Trust is and shall be effective as a Financing Statement
filed as a fixture filing as and from the date of its recordation in the real estate records of the county in which the real property
is situated. The name of the record owner of the real property and improvements is the Grantor identified on the first page of
this Deed of Trust. The name and address of the Grantor, as debtor, is set forth in Section 5.07 of this Deed of Trust. The name
and address of Beneficiary, as secured party, and from whom information concerning the security interest created herein may be
obtained, is set forth in Section 5.07 of this Deed of Trust. The provisions set forth in the Granting Clauses of this Deed of
Trust describe the types and items of the personal property affixed or to be affixed to the Secured Property and the Improvements.
The fixtures are related to the real estate described in Exhibit A attached hereto and incorporated herein by reference. The Grantor
is a limited liability company organized under the laws of the State of Delaware. The organizational identification number of the
Grantor, as debtor, is 5465572. This Deed of Trust shall remain in effect as a fixture filing until this Deed of Trust is released
or satisfied of record.

 

6.09       Security
Agreement. This Deed of Trust is both a real property Deed of Trust and a “security agreement” within the meaning
of the Uniform Commercial Code of the State. The Secured Property includes both real and personal property and all other rights
and interests, whether tangible or intangible in nature, of Grantor in the Secured Property. Grantor, by executing and delivering
this Deed of Trust grants to Beneficiary and Trustee (to the extent provided herein), as security for the Obligations, a security
interest in the Secured Property to the full extent that the Secured Property may be subject to the Uniform Commercial Code. If
an Event of Default shall occur, Beneficiary and/or Trustee, in addition to any other rights and remedies which it may have, shall
have and may exercise immediately and without demand, any and all rights and remedies granted to a secured party upon default under
the Uniform Commercial Code, including, without limiting the generality of the foregoing, the right to sell the Personal Property
at public or private sale, the right to take possession of the Personal Property or any part thereof, and to take such other measures
as Beneficiary and/or Trustee may deem necessary for the care, protection and preservation of the Personal Property. Upon request
or demand of Beneficiary and/or Trustee, Grantor shall at its expense assemble the Personal Property and make it available to Beneficiary
and/or Trustee at a convenient place acceptable to Beneficiary and/or Trustee. Grantor shall pay to Beneficiary and Trustee on
demand any and all expenses, including legal expenses and attorneys’ fees and disbursements, incurred or paid by Beneficiary
and Trustee in protecting its interest in the Personal Property and in enforcing its rights hereunder with respect to the Personal
Property. Any notice of sale, disposition or other intended action by Beneficiary and/or Trustee with respect to the Personal Property
sent to Grantor in accordance with the provisions hereof at least ten (10) days prior to such sale, disposition or action shall
constitute reasonable notice to Grantor. The proceeds of any disposition of the Personal Property, or any part thereof, may be
applied by Beneficiary to the payment of the Obligations in such priority and proportions as Beneficiary in its discretion shall
deem proper.

 

[Signature Page Follows]

 

    	
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[Signature Page - Deed of Trust]

 

IN WITNESS WHEREOF,
Grantor has executed this Deed of Trust under seal as of the date first above written.

 

	 	GRANTOR:	 	 	 	 	 
	 	 	 	 	 	 	 
	 	WAKE FOREST APARTMENTS LLC, 
	 	a Delaware limited liability company     (SEAL)
	 	 	 	 	 	 	 
	 	By:	Trade Street Operating Partnership, LP, a Delaware
	 	 	limited partnership, its Sole Member     (SEAL)
	 	 	 	 	 	 	 
	 	 	By:	Trade Street OP GP, LLC, a Delaware limited
	 	 	 	liability company, its general partner     (SEAL)
	 	 	 	 	 	 	 
	 	 	 	By:	Trade Street Residential, Inc., a Maryland
	 	 	 	 	corporation, its sole member    (SEAL)
	 	 	 	 	 	 	 
	 	 	 	 	By:	/s/ Richard Ross	(SEAL)
	 	 	 	 	Name:	Richard Ross	 
	 	 	 	 	Title:	Chief Financial Officer	 

 

Miami Dade County, State of Florida

 

I certify that the
following person(s) personally appeared before me this day, each acknowledging to me that he or she signed the foregoing document:

Richard Ross

name(s) of principal(s)

 

	Date:   January 14, 2014	/s/ Rachael Peters  
	 	(official signature of Notary)
	 	Rachael Peters, Notary Public
	 	(Notary's printed or typed name)
	 	 
	(Official Seal)	My commission expires: August 2, 2014
	Commission # EE013802	 

 

    	
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EXHIBIT A

 

Land

 

TRACT ONE

PROPERTY OF: WAKE FOREST APARTMENTS, LLC

DB 14848, PG. 366

PIN: 1830-73-4599

TOWN OF WAKE FOREST, WAKE COUNTY, NORTH CAROLINA

 

COMMENCING AT AN IRON PIPE FOUND IN THE SOUTHERN 60' RIGHT-OF-WAY
OF CAVENESS FARMS AVENUE, HAVING NC GRID, NAD 83/2001 COORDINATES OF Y(N): 804,156.619 Y(E): 2,136,752.391, SAID IRON PIPE BEING
THE POINT OF BEGINNING FOR TRACT ONE:

 

THENCE ALONG SAID RIGHT-OF-WAY THE FOLLOWING COURSES AND DISTANCES:

 

N60°55'12”E 33.85 FEET TO AN IRON PIPE FOUND;

 

ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 970.02 FEET, AN
ARC LENGTH OF 274.03 FEET, AND A CHORD BEARING AND DISTANCE OF N69°00'47”E, 273.12 FEET TO A PUNCHMARK SET;

 

N77°06'22”E, 612.66 FEET TO A REBAR SET;

 

ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 432.86 FEET, AN
ARC LENGTH OF 131.66 FEET, AND A CHORD BEARING AND DISTANCE OF N85°55'30”E, 131.15 FEET TO A REBAR SET;

 

S85°21'42”E, 78.35 FEET TO A REBAR SET;

 

ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 530.00 FEET, AN
ARC LENGTH OF 38.85 FEET, AND A CHORD BEARING AND DISTANCE OF S87°27'43”E, 38.84 FEET TO A REBAR SET;

 

ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 25.00 FEET, AN
ARC LENGTH OF 38.22 FEET, AND A CHORD BEARING AND DISTANCE OF S45°47'13”E, 34.61 FEET TO A REBAR SET ALONG THE WESTERN
RIGHT-OF-WAY OF LIGON MILL ROAD;

 

THENCE ALONG WITH SAID RIGHT-OF-WAY THE FOLLOWING COURSES AND
DISTANCES:

 

S01°59'12”E, 340.31 FEET TO A REBAR SET;

 

ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 1,155.00 FEET,
AN ARC LENGTH OF 200.31 FEET, AND A CHORD BEARING AND DISTANCE OF S02°53'07”W, 200.06 FEET TO A REBAR SET;

 

S07°58'35”W, 196.27 FEET TO A REBAR SET;

 

ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 895.00 FEET, AN
ARC LENGTH OF 501.35 FEET, AND A CHORD BEARING AND DISTANCE OF S08°04'17”E, 494.82 FEET TO A REBAR SET;

 

THENCE LEAVING SAID RIGHT-OF-WAY ALONG THE COMMON LINE WITH
LOT 2G S02°53'54”E, 111.10 FEET TO A POINT IN THE CENTER OF THE CREEK;

 

    	
WCSR 31792892	 	Deed of Trust
Loan No. 374-0551

    	 

    

 

THENCE WITH SAID CENTERLINE OF CREEK THE FOLLOWING COURSES AND
DISTANCES:

 

	S39°09'10”W, 27.73 FEET;	S73°32'52”W, 37.46 FEET;	S42°48'56”W, 47.67 FEET;
	S27°16'24”W, 49.40 FEET;	S57°52'57”W, 8.16 FEET;	N80°21'31”W, 22.34 FEET;
	S41°23'51”W, 62.56 FEET;	N75°55'15”W, 18.97 FEET;	S77°42'33”W, 22.04 FEET;
	N56°55'25”W, 11.92 FEET;	N69°52'33”W, 33.51 FEET;	S27°00'00”W, 45.90 FEET;
	S30°13'32”E, 41.36 FEET;	S17°53'51”E, 27.04 FEET;	S40°23'55”E, 66.57 FEET;
	N61°13'38”E, 19.85 FEET;	S33°47'30”E, 30.50 FEET;	S20°08'38”E, 46.82 FEET;
	S60°25'04”E, 16.95 FEET;	 	 

 

S07°17'06”W, 25.05 FEET; TO A POINT IN THE CENTER
OF THE CREEK ALONG THE COMMON LINE WITH WAL-MART;

 

THENCE WITH SAID COMMON LINE S86°01'24”W, 556.46 FEET
TO A POINT IN THE CENTERLINE OF THE CREEK COMMON LINE WITH WEINGARTEN INVESTMENTS;

 

THENCE WITH SAID CREEK NORTH TO THE PLACE OF BEGINNING.

 

THE FOLLOWING REFERENCE LINE COURSES AND DISTANCES ARE FOR REFERENCE
ONLY; THE CREEK IS THE PROPERTY LINE:

 

THENCE FROM THE CENTER OF THE CREEK N34°00'14”W, 146.82
FEET TO AN IRON PIPE FOUND;

 

N19°55'03”E, 107.90 FEET TO AN IRON PIPE FOUND;

 

N19°22'23”E, 100.20 FEET TO AN IRON PIPE FOUND;

 

N12°23'19”W, 211.90 FEET TO AN IRON PIPE FOUND;

 

N12°59'31”W, 182.68 FEET TO AN IRON PIPE FOUND;

 

N06°13'11”E, 225.05 FEET TO A REBAR SET;

 

N05°57'54”W, 200.44 FEET TO A REBAR SET;

 

N43°40'21”W, 261.16 FEET TO A REBAR SET;

 

N46°10'18”W, 314.20 FEET TO THE POINT OF BEGINNING,

 

CONTAINING 30.4472 (+/-) ACRES (BM 2012, PG. 248-252 / CENTER
OF THE CREEK) FOR TRACT ONE HEREIN DESCRIBED.

 

TOGETHER WITH the easements, rights and benefits as set forth
in the Reciprocal Easement Agreement recorded in Book 14848, Page 379, Wake County Registry.

 

    	
WCSR 31792892	 	Deed of Trust
Loan No. 374-0551

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