Document:

Assumption Agreement

 Exhibit 10.12 
 When Recorded Return to: 
 Stewart Title Guaranty Company 

Attn: Carma D. Weymouth 
 National Commercial
Escrow Officer 
 50 S. Steele Street, Suite 600 
 Denver, CO 80209 
 File No. 10331228 
 Freddie Mac Loan Number: 534384196 
 Dakota Hill at Valley Ranch Apartments 

ASSUMPTION AGREEMENT 
 (for use with electronic mortgage documents only) 
 Revision Date 5-14-10

 THIS ASSUMPTION AGREEMENT is made effective as of the 26th day of October, 2010, by and among DAKOTA HILL
PROPERTIES, A TEXAS LIMITED PARTNERSHIP, a Texas limited partnership (“Original Borrower”); KBS LEGACY PARTNERS DAKOTA HILL LLC, a Delaware limited liability company (“New Borrower”); and the FEDERAL HOME LOAN MORTGAGE
CORPORATION (“Freddie Mac”) and is acknowledged and consented to by IRET PROPERTIES, A NORTH DAKOTA LIMITED PARTNERSHIP, a North Dakota limited partnership (“Original Guarantor”) and C. PRESTON BUTCHER, Individually and C.
PRESTON BUTCHER, as THE PRESTON BUTCHER LEGACY PARTNERS BUSINESS ASSETS REVOCABLE TRUST UNDER DECLARATION OF TRUST DATED MAY 12, 2003 and KBS LEGACY PARTNERS PROPERTIES LLC, a Delaware limited liability company (collectively, “New
Guarantor”). 
 RECITALS 
  

	A.	Original Borrower obtained a mortgage loan (the “Loan”) from CBRE Capital Markets, Inc. (“Original Lender”), which loan is secured by certain Land
and Improvements (the “Property”), located in the City of Irving, Dallas County, Texas. The Land is more particularly described in Exhibit A, attached to this Agreement. 

 

	B.	 Original Borrower executed a promissory note evidencing the Loan, dated February 1, 2010, in the original principal amount of TWENTY THREE MILLION FOUR
HUNDRED SEVENTY FIVE THOUSAND and 00/100 DOLLARS (US $23,475,000.00), payable to Original Lender (the “Note”). The Original Guarantor guaranteed payment of certain 

  
  

Page 1 

 
amounts due under the Note by executing a Guaranty dated February 1, 2010 (the “Original Guaranty”). 

 

	C.	To secure repayment of the Loan, Original Borrower executed and delivered to Original Lender a Multifamily Deed of Trust, Assignment of Rents and Security Agreement and
Fixture Filing (the “Security Instrument”) of even date with the Note, which is recorded in the Official Public Records of Real Property of Dallas County, Texas (the “Land Records”) in Clerk’s File No. 2010-27352. Any
capitalized terms used in this Agreement and not defined shall have the meaning ascribed to them in the Security Instrument. 

  

	D.	The Note, Security Instrument and any other document executed by Original Borrower in connection with the Loan that will be assumed by New Borrower, all as listed on
Exhibit B to this Agreement, are referred to collectively in this Agreement as the “Assumed Loan Documents”. 

  

	E.	Original Lender endorsed the Note to the order of Freddie Mac and by instrument dated February 1, 2010 filed for record on February 3, 2010 in the Land
Records in Clerk’s File No. 2010-46552 sold, assigned and transferred all right, title and interest of the Original Lender in and to the Security Instrument and the Loan Documents to Freddie Mac. Freddie Mac is now the owner and holder of
the Note and the Loan is serviced by GEMSA Loan Services, L.P. (the “Servicer”). 

  

	F.	Original Borrower has transferred or has agreed to transfer all of its right, title, and interest in and to the Property to New Borrower (the “Transfer”).

  

	G.	New Borrower has agreed to assume all of Original Borrower’s rights, obligations, and liabilities created or arising under the Assumed Loan Documents, with certain
modifications, if any, as set forth in Exhibit C to this Agreement (the “Assumption”). 

  

	H.	Subject to the full satisfaction of all conditions set forth below, Freddie Mac has agreed to consent to New Borrower’s Assumption. 

 

	I.	Original Borrower desires to be released by Freddie Mac from any and all obligations and liabilities under the terms and provisions of the Loan Documents, and Freddie
Mac has agreed to release Original Borrower from further liability (except as provided in Section 14 of this Agreement). 

 NOW, THEREFORE, in consideration of these premises, the mutual covenants contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the
parties agree as follows: 
  

	1.	 Assumption of Obligations. New Borrower covenants, promises and agrees that New Borrower, jointly and severally if more than one, will
unconditionally assume and be bound by all terms, provisions, and covenants of the Assumed Loan Documents as if New Borrower had been the original maker of the Assumed Loan Documents. New Borrower

  
  

Page 2 

 
will pay all sums to be paid and perform each and every obligation to be performed by Original Borrower under and in accordance with the terms and conditions of the Assumed Loan Documents.

  

	2.	Affirmation by New Borrower. New Borrower agrees that the Assumed Loan Documents are and will be and remain in full force and effect, enforceable against New
Borrower in accordance with their terms, except as modified by Exhibit C to this Agreement. The Property will remain subject to the lien, charge and encumbrance of the Security Instrument. Nothing contained in this Agreement or done pursuant
to this Agreement will affect or be construed to affect the lien, charge, and encumbrance of the Security Instrument or the priority of the Security Instrument over other liens, charges and encumbrances. Nothing contained in this Agreement or done
pursuant to this Agreement will release or be construed to release or affect the liability of any party or parties who may now or after the date of this Agreement be liable under or on account of the Note and the Security Instrument, except as
expressly provided in this Agreement. New Borrower will be liable for the payment of all sums and the performance of every obligation required under the Assumed Loan Documents to the extent set forth in the Assumed Loan Documents, as modified by
this Agreement. 

  

	3.	Subordination of Rights of Original Borrower and New Borrower. Any indebtedness of Original Borrower to New Borrower, or of New Borrower to Original Borrower,
now or existing after the date of this Agreement, together with any interest on such debt, is hereby subordinated to any indebtedness of Original Borrower or New Borrower to Freddie Mac under the Loan Documents or the Assumed Loan Documents, as
applicable. Any collection or receipts with respect to any such indebtedness of Original Borrower to New Borrower, or of New Borrower to Original Borrower, will be collected, enforced and received by New Borrower or Original Borrower (as applicable)
in trust for the benefit of Freddie Mac, and will be paid over to Freddie Mac on account of the indebtedness of Original Borrower and New Borrower to Freddie Mac, but without impairing or affecting in any manner the liability of Original Borrower or
New Borrower under the other provisions of the Loan Documents or the Assumed Loan Documents, as applicable, and this Agreement. However, until the occurrence of an Event of Default under the Security Instrument, Original Borrower or New Borrower (as
applicable) will be entitled to retain for its own account all payments made on account of the principal of and interest on any such indebtedness; provided no such payment is made more than ten (10) days in advance of the due date.

  

	4.	Modification of Note and Security Instrument. New Borrower and Freddie Mac agree that the provisions of the Assumed Loan Documents are modified as set forth on
Exhibit C to this Agreement. 

  

	5.	 Replacement Reserve. New Borrower and Freddie Mac agree that a Replacement Reserve Fund will be established with Servicer with payments to be
made by New Borrower to such account in the amount of Eleven Thousand Five Hundred Eight Dollars ($11,508.00) per month, in accordance with the terms and provisions of Freddie Mac’s current form of Replacement Reserve Agreement to be executed
by New Borrower and Freddie Mac on the 

  
  

Page 3 

 
same date as this Agreement.  
  

	6.	Repairs. No Repairs are required and no Repair Escrow will be established as of the date of this Agreement. Original Borrower acknowledges and agrees that
Freddie Mac is not holding any funds pursuant to the Repair Escrow Agreement or Repair and Escrow Agreement, if any, executed by Original Borrower. 

  

	7.	Escrows for Taxes, Insurance and Other Charges. 

 On or prior to the execution of this Agreement, to ensure that sufficient funds are available for the payment of taxes and insurance, an escrow account will be established with Servicer, with payments to
be made by New Borrower to such account in the amount required by Freddie Mac and/or Servicer. 
 New Borrower will not be
required to establish and pay escrows for flood insurance or ground rent. 
 The Note is hereby amended as set forth in
Exhibit C to evidence the personal liability of New Borrower and New Guarantor for any taxes, hazard insurance, flood insurance, ground rent or such other charges or assessments for which no escrow is being collected, but which are not timely
paid. By execution of this Agreement, Original Borrower acknowledges and agrees that it relinquishes any right, title or interest it has or may have in any escrow account held by Servicer in connection with the Property. 

 

	8.	Guaranty Requirements. On the date of execution of this Agreement, C. PRESTON BUTCHER, individually and C. PRESTON BUTCHER, as Trustee OF THE PRESTON BUTCHER
LEGACY PARTNERS BUSINESS ASSETS REVOCABLE TRUST UNDER DECLARATION OF TRUST DATED MAY 12, 2003 and KBS LEGACY PARTNERS PROPERTIES LLC, a Delaware limited liability company (jointly and severally if more than one, “New Guarantor”) will
execute and deliver to Freddie Mac the appropriate version of Freddie Mac’s current form of Guaranty (the “Guaranty”) under which the New Guarantor guarantees the full and punctual payment and performance, when due, of certain
obligations of the Borrower in connection with the Loan, as more fully set forth in the Guaranty. The Guaranty will provide that New Guarantor is personally liable for zero percent (0%) of the outstanding principal balance of the Loan. New Guarantor
automatically will become liable for one hundred percent (100%) of all amounts payable under the Assumed Loan Documents upon the occurrence of certain events more specifically set forth in the Guaranty. 

 

	9.	Ratification of Original Guaranty. By signing the Acknowledgment and Consent to this Agreement where indicated below, the Original Guarantor:

  

	 	a)	 ratifies the Original Guaranty under which it guaranteed payments of certain amounts under the Loan Documents only to the extent that it guaranties
payments of the Borrower’s liability under Section 18 (ENVIRONMENTAL HAZARDS) of the Security Instrument arising out of conditions existing on or before the date of this

  
  

Page 4 

 
Agreement (“Preexisting Conditions”); and 
  

	 	b)	agrees that Section 18 (ENVIRONMENTAL HAZARDS) of the Security Instrument as assumed by New Borrower and modified by this Agreement will continue to be guaranteed
by the Original Guarantor as and to the full extent provided in the Original Guaranty for such Preexisting Conditions. 

  

	 	c)	Freddie Mac hereby releases Original Guarantor from any and all liability under the Original Guaranty except to the extent that the Original Guaranty guarantees payment
of the Original Borrower’s liability under Section 18 of the Security Instrument arising out of Preexisting Conditions. 

  

	10.	Representations. Original Borrower represents and warrants to Freddie Mac: 

 

	 	a)	As of the date of this Agreement, the amount of the unpaid indebtedness under the Note is $23,158,669.63. 

 

	 	b)	Interest at the rate set forth in the Note has been paid to Freddie Mac in full through and including November 1, 2010. 

 

	 	c)	All of the representations and warranties in the Loan Documents are true as of the date on which Original Borrower executes this Agreement. 

 

	 	d)	No Event of Default (or event which, with the giving of notice or the passage of time or both, would be an Event of Default) has occurred or is continuing under the
Security Instrument. 

  

	 	e)	Original Borrower has no claims, offsets, defenses, or counterclaims of any kind to its performance under, or Freddie Mac’s enforcement of, the Note and the other
Loan Documents; and to the extent any such counterclaims, setoffs, defenses or other causes of action may exist, whether known or unknown, Original Borrower waives all such items. Original Borrower acknowledges that all of Freddie Mac’s actions
in connection with the Loan have been in compliance with the terms of the applicable Loan Documents, and Original Borrower acknowledges and agrees that Freddie Mac has not breached or failed to perform any duty or obligation that Freddie Mac may owe
Original Borrower. 

  

	 	f)	There are no suits or actions threatened or pending against Original Borrower which affect the enforcement or validity of the Note, the Security Instrument and/or the
Loan Documents. 

  

	11.	 Additional Transfers. Notwithstanding Freddie Mac’s consent to the Transfer of the Property to New Borrower, New Borrower understands and
agrees that such consent will in no way limit or operate as a waiver of Freddie Mac’s continuing rights under Section 21 of 

  
  

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the Security Instrument. 
  

	12.	Continuing Obligations. New Borrower will execute, acknowledge and deliver an Operations and Maintenance Agreement and such other documents as Freddie Mac, or
Servicer may require to document the Assumption and to more fully effectuate the provisions of this Agreement. The failure of New Borrower to comply with the additional obligations contained in this Section will constitute an Event of Default under
the Security Instrument, and Freddie Mac will be entitled to exercise all remedies available to it under the terms of the Assumed Loan Documents. 

  

	13.	Additional Obligations. 

  

	 	a)	To induce Freddie Mac to consent to New Borrower’s Assumption, in addition to the covenants and agreements set forth in the Assumed Loan Documents, New Borrower
agrees that it will comply with the Additional Obligations set forth on Exhibit D to this Agreement, if applicable. 

  

	 	b)	The failure of New Borrower to comply with the Additional Obligations, if applicable, will constitute an Event of Default under the Security Instrument, and Freddie Mac
will be entitled to exercise all remedies available to it under the terms of the Assumed Loan Documents. 

  

	14.	Release of Original Borrower; Rights of Freddie Mac. 

  

	 	a)	In reliance upon Original Borrower’s representations and warranties, Freddie Mac releases Original Borrower from any and all obligations under the terms and
provisions of the Loan Documents; provided, however, that Original Borrower is not released from any liability pursuant to Section 18 (ENVIRONMENTAL HAZARDS) of the Security Instrument arising out of conditions existing on or before the date of
this Agreement (“Preexisting Conditions”). 

  

	 	b)	If any material element of Original Borrower’s representations and warranties are materially false or misleading, this release will be canceled and Original
Borrower will remain obligated under the Loan Documents as though there had been no release. 

  

	 	c)	 If at any time all or any part of any payment by Original Borrower which has been applied by Freddie Mac to payment of the Loan on or prior to the date
of this Agreement is or must be rescinded, repaid or returned by Freddie Mac for any reason whatsoever (including, without limitation, the application of any bankruptcy, insolvency or other law), for purposes of this Agreement, to the extent that
such payment is or must be rescinded, repaid or returned, such payment will be deemed to have continued to be due and payable, notwithstanding such application by Freddie Mac and this Agreement will continue to be effective as to such payment as
though such application by Freddie Mac had not been made. Original Borrower and 

  
  

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New Borrower will each remain liable to Freddie Mac for the amount so rescinded, repaid, or returned to the same extent as if such amount had never originally been received by Freddie Mac,
notwithstanding any cancellation of the Note, release or satisfaction of the Security Instrument, or the cancellation of any other Loan Document. 
  

	15.	Expenses. New Borrower’s execution of this Agreement will constitute New Borrower’s agreement to pay all expenses incurred by Freddie Mac in connection
with this Assumption, including without limitation the payment of any title endorsement costs, legal costs (including in-house legal costs) attorney’s fees, and assumption fees required by Freddie Mac. 

 

	16.	Miscellaneous. 

  

	 	a)	This Agreement will be binding upon and will inure to the benefit of the parties to the Agreement and their respective heirs, successors and permitted assigns.

  

	 	b)	Except as expressly modified by this Agreement, the Note, the Security Instrument and all other Loan Documents will be unchanged and remain in full force and effect,
and are hereby expressly approved, ratified and confirmed. No provision of this Agreement that is held to be inoperative, unenforceable or invalid will affect the remaining provisions, and to this end all provisions of this Agreement are declared to
be severable. 

  

	 	c)	Time is of the essence of this Agreement. 

  

	 	d)	This Agreement may not be changed orally, but only by an agreement in writing, signed by the party against whom enforcement of any waiver, change, modification or
discharge is sought. 

  

	 	e)	This Agreement will be construed in accordance with the laws of the jurisdiction in which the Property is located. 

 

	 	f)	This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same document.

  

	 	g)	All notices given pursuant to the Agreement must be in writing and will be effectively given if personally delivered or, if mailed, postage prepaid, certified or
registered mail, return receipt requested, to the addresses of the parties set forth below or to such other address as any party subsequently may designate in writing. 

 

	 	h)	 The failure of New Borrower to comply with the additional obligations contained in this Agreement will constitute an Event of Default under the
Security Instrument, and Freddie Mac will be entitled to exercise all remedies available to it under the 

  
  

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terms of the Assumed Loan Documents. 
  

	17.	Executed Originals. An executed original of this Agreement will be (i) attached permanently to the Note as an amendment to the Note, and (ii) recorded
in the Land Records as a modification to the Security Instrument. 

  

	18.	State Specific Requirements. N/A 

 ATTACHED EXHIBITS. The following Exhibits are attached to this Instrument: 
  

			
	 [X] Exhibit A
	  	Legal Description of the Land (required)
		
	 [X] Exhibit B
	  	List of Assumed Loan Documents (required)
		
	 [X] Exhibit C
	  	Modifications to Note and Security Instrument (required)
		
	 [X] Exhibit D
	  	Additional Obligations of New Borrower
		
	 [X] Exhibit E
	  	Modifications to Assumption Agreement

  
  

Page 8 

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

 ORIGINAL BORROWER: 

DAKOTA HILL PROPERTIES, A TEXAS LIMITED PARTNERSHIP, 
 a Texas limited partnership 
  

	By:	DAKOTA – IRET INC., 

 a
Texas corporation, 
 as its general partner 
 By: /s/ Thomas A. Wentz, Jr. 
 Name: Thomas A. Wentz, Jr. 

Title: Vice President 

Address for Notice to Original Borrower: 

DAKOTA HILL PROPERTIES, A TEXAS LIMITED PARTNERSHIP 
 3015 16th
Street Southwest, Suite 100 
 Minot North Dakota 58701 

 

			
	THE STATE OF NORTH DAKOTA	 	§
		 	§
	COUNTY OF WARD	 	§

 This instrument was acknowledged
before me on the 21st day of October, 2010, by Thomas A. Wentz, Jr., as Vice President of Dakota – IRET Inc., a Texas corporation, on behalf of said corporation, as the sole General Partner of Dakota Hill Properties,
a Texas Limited Partnership, a Texas limited partnership, on behalf of said limited partnership. 
 /s/ Jo
E. Boyko 
 Notary Public, State of North Dakota 

  
  

Page 9 

 NEW BORROWER: 
 KBS LEGACY PARTNERS DAKOTA HILL LLC, 
 a Delaware limited liability company 

 

	By:	KBS LEGACY PARTNERS PROPERTIES LLC, 

 a Delaware limited liability company, 
 as its Sole Member 

 

	 	By:	KBS LEGACY PARTNERS LIMITED PARTNERSHIP, 

 a Delaware limited partnership, 
 as its Sole Member 

 

	 	By:	KBS LEGACY PARTNERS APARTMENT REIT, INC., 

 a Maryland corporation, 
 its sole General Partner 

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

Tax identification number for New Borrower 

                27-3201318       
          
 Address for Notice to New Borrower: 

KBS Legacy Partners Dakota Hill LLC 
 c/o KBS
Realty Advisors, LLC 
 620 Newport Center Drive, Suite 1300 
 Newport Beach, California 92660 
 Attn: David Snyder 

KBS Legacy Partners Dakota Hill LLC 
 c/o Legacy
Partners Residential Development, Inc. 
 13155 Noel Road, Suite 825 
 Dallas, Texas 75240-6814 
 Attn: Spencer Stuart, Jr. 

KBS Legacy Partners Dakota Hill LLC 
 c/o Legacy
Partners Residential Realty LLC 
 4000 E. Third Avenue, Sixth Floor 
 Foster City, California 94404 
 Attn: W. Dean Henry/ Guy K. Hays 

  
  

Page 10 

  

			
	THE STATE OF CALIFORNIA	 	§
		 	§
	COUNTY OF San Mateo§	 	

 On October 19, 2010 before me, Suzan C. Cochrane, a notary public, personally
appeared Guy K. Hays, who proved to me on the basis of satisfactory evidence to be the person whose name is/are subscribed to the within authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument. 
 I certify under PENALTY OF PERJURY under the laws of the State of
California that the foregoing paragraph is true and correct. 
 WITNESS my hand and official seal. 

/s/ Suzan C. Cochrane (seal) 

  
  

Page 11 

 CONSENTED TO BY FREDDIE MAC: 
 FEDERAL HOME LOAN MORTGAGE 
 CORPORATION 

By: /s/ David J. Goozman 
 Name:
David J. Goozman 
 Title: Asset Transactions Associate Director 
 Date: October 20, 2010 
 Address for Notice to Freddie Mac: 

8200 Jones Branch Drive 
 McLean, Virginia 22102

  

			
	THE STATE OF Virginia    §	 	
		 	§
	COUNTY OF Fairfax §	 	

 This instrument was acknowledged before me on the 20th day of October, 2010, by
David Goozman as Associate Director of the Federal Home Loan Mortgage Corporation, a corporation organized and existing under the laws of the United States, on behalf of said corporation. 

Jennifer Michelle Lam 
 Notary Public, State of Virginia 

  
  

Page 12 

 ACKNOWLEDGED AND CONSENTED TO: 

ORIGINAL GUARANTOR: 
 IRET
PROPERTIES, A NORTH DAKOTA LIMITED PARTNERSHIP, 
 a North Dakota limited partnership 

 

	By:	IRET, INC., 

 a North Dakota
corporation, 
 as its General Partner 
 By:/s/ Thomas A. Wentz, Jr. 
 Name: Thomas A. Wentz, Jr. 

Title: Senior Vice President 
 Date:10/21/10 
 Address for Notice to Original Guarantor: 

3015
16th Street Southwest, Suite 100 

Minot, North Dakota 58701 
  

			
	THE STATE OF NORTH DAKOTA	 	§
		 	§
	COUNTY OF WARD	 	§

 This instrument was acknowledged
before me on the 21st day of October, 2010, by Thomas A. Wentz, Jr., as Senior Vice President of IRET, Inc., a North Dakota corporation, on behalf of said corporation, as the sole General Partner of IRET Properties,
a North Dakota Limited Partnership, a North Dakota limited partnership, on behalf of said limited partnership. 
 /s/ Jo E. Boyko 
 Notary Public, State of North Dakota

  
  

Page 13 

 NEW GUARANTORS: 
 /s/ C. Preston Butcher 
 C. PRESTON BUTCHER 

/s/ C. Preston Butcher 
 C. PRESTON
BUTCHER, AS TRUSTEE OF THE 
 PRESTON BUTCHER LEGACY PARTNERS BUSINESS 
 ASSETS REVOCABLE TRUST UNDER DECLARATION 
 OF TRUST DATED MAY 12, 2003 

KBS LEGACY PARTNERS PROPERTIES LLC, 
 a Delaware
limited liability company 
  

	By:	KBS LEGACY PARTNERS LIMITED PARTNERSHIP, 

 a Delaware limited partnership, 
 its Sole Member 

 

	 	By:	KBS LEGACY PARTNERS APARTMENT REIT, INC., 

 a Maryland corporation, 
 its sole General Partner 

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

Address for Notice to New Guarantor: 
 C.
Preston Butcher 
 c/o Legacy Partners Residential Realty LLC 
 4000 E. Third Avenue, Sixth Floor 
 Foster City, California 94404 

With a copy to: 

c/o Legacy Partners Residential Realty LLC 
 4000 E. Third Avenue, Sixth Floor 
 Foster City, California 94404 

Attn: W. Dean Henry/ Guy K. Hays 

  
  

Page 14 

 KBS Legacy Partners Properties LLC 
 c/o KBS Realty Advisors, LLC 
 620 Newport Center Drive, Suite 1300 

Newport Beach, California 92660 
 Attn: David
Snyder 
 With copies to: 
 KBS Legacy Partners Properties LLC 
 c/o Legacy Partners
Residential Development, Inc. 
 13155 Noel Road, Suite 825 

Dallas, Texas 75240-6814 
 Attn: Spencer Stuart, Jr. 
 KBS Legacy Partners Properties LLC

 c/o Legacy Partners Residential Realty LLC 

4000 E. Third Avenue, Sixth Floor 
 Foster City, California 94404 
 Attn: W. Dean Henry/ Guy K. Hays

  
  

Page 15 

  

			
	THE STATE OF CALIFORNIA	 	§
		 	§
	COUNTY OF San Mateo§	 	

 On October 15, 2010 before me, Sylvia Stein, a notary public, personally appeared
Preston Butcher, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 
 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 
 WITNESS my hand and official seal. 
 /s/ Sylvia Stein (Seal) 

Signature of Notary 
  

			
	THE STATE OF CALIFORNIA	 	§
		 	§
	COUNTY OF San Mateo§	 	

 On October 15, 2010 before me, Sylvia Stein, a notary public, personally appeared
Preston Butcher, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 
 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 
 WITNESS my hand and official seal. 
 /s/ Sylvia Stein (Seal) 

Signature of Notary 

  
  

Page 16 

  

			
	THE STATE OF CALIFORNIA	 	§
		 	§
	COUNTY OF San Mateo§	 	

 On October 19, 2010 before me, Suzan c. Cochrane, a notary public, personally
appeared Guy K. Hays, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 
 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 
 WITNESS my hand and official seal. 
 /s/ Suzan C. Cochrane (Seal) 

Signature of Notary 

  
  

Page 17 

 EXHIBIT A 

REQUIRED 

Legal Description of Land 

BEING ALL of Lot 2R, Block A, of JEFFERSON AT VALLEY RANCH SUBDIVISION, REVISED, an addition to the City of Irving, Dallas County, Texas, described by
Plat recorded in Volume 99215, Page 489, Deed Records, Dallas County, Texas. 

  
 Page A-1

 EXHIBIT B 

REQUIRED 

(List of Assumed Loan Documents) 
 Multifamily Note dated February 1, 2010, executed by Original Borrower and payable to Original Lender in the original principal sum of $23,475,000.00. 

Multifamily Deed of Trust, Assignment of Rents and Security Agreement and Fixture Filing dated February 1, 2010, executed by Original Borrower for
the benefit of Original Lender, recorded in recorded in Clerk’s File No. 2010-27352 of the Official Public Records of Dallas County, Texas. 

  
 Page B-1

 EXHIBIT C 

REQUIRED 

Modifications to all Assumed Loan Documents 
 As used in the Assumed Loan Documents, all references to Borrower will be deemed to refer to New Borrower. 
  

	A.	MODIFICATIONS TO NOTE: 

  

	1.	Section 9(c) of the Note is deleted in its entirety and replaced with the following new subsection (iv): 

(iv)    Borrower fails to pay when due the amount of any item below marked “Deferred” in accordance with the
terms of the Security Instrument; provided however, that if no item is marked “Deferred”, this Section 9(c)(iv) shall be of no force or effect. 

 

			
	[Deferred]	  	Hazard Insurance premiums or other insurance premiums,
	[Collect]	  	Taxes,
	[Deferred]	  	water and sewer charges (that could become a lien on the Mortgaged Property),
	[N/A]	  	ground rents,
	[Deferred]	  	assessments or other charges (that could become a lien on the Mortgaged Property)

 

	B.	MODIFICATIONS TO SECURITY INSTRUMENT: 

The following modifications are made to the text of the Security Instrument: 

 

	1.	Section 7 is deleted in its entirety and replaced with the following: 

 

	 	7.	DEPOSITS FOR TAXES, INSURANCE AND OTHER CHARGES. 

  

	 	(a)	Unless this requirement is waived in writing by Lender, which waiver may be contained in this Section 7(a), Borrower shall deposit with Lender on the day monthly
installments of principal or interest, or both, are due under the Note (or on another day designated in writing by Lender), until the Indebtedness is paid in full, an additional amount sufficient to accumulate with Lender the entire sum required to
pay, when due, the items marked “Collect” below. Lender will not require Borrower to make Imposition Deposits with respect to the items marked “Deferred” below. 

  
 Page C-1

  

			
	[Deferred]	  	Hazard Insurance premiums or other insurance premiums required by Lender under Section 19,
	[Collect]	  	Taxes,
	[Deferred]	  	water and sewer charges (that could become a lien on the Mortgaged Property),
	[N/A]	  	ground rents,
	[Deferred]	  	assessments or other charges (that could become a lien on the Mortgaged Property)

 The amounts deposited under the preceding sentence are collectively referred to in this Instrument as the “Imposition Deposits.” The obligations of Borrower for which the Imposition Deposits are
required are collectively referred to in this Instrument as “Impositions.” The amount of the Imposition Deposits shall be sufficient to enable Lender to pay each Imposition before the last date upon which such payment may be made without
any penalty or interest charge being added. Lender shall maintain records indicating how much of the monthly Imposition Deposits and how much of the aggregate Imposition Deposits held by Lender are held for the purpose of paying Taxes, insurance
premiums and each other Imposition. 
  

	 	(b)	Imposition Deposits shall be held in an institution (which may be Lender, if Lender is such an institution) whose deposits or accounts are insured or guaranteed by
a federal agency. Lender shall not be obligated to open additional accounts or deposit Imposition Deposits in additional institutions when the amount of the Imposition Deposits exceeds the maximum amount of the federal deposit insurance or guaranty.
Lender shall apply the Imposition Deposits to pay Impositions so long as no Event of Default has occurred and is continuing. Unless applicable law requires, Lender shall not be required to pay Borrower any interest, earnings or profits on the
Imposition Deposits. As additional security for all of Borrower’s obligations under this Instrument and the other Loan Documents, Borrower hereby pledges and grants to Lender a security interest in the Imposition Deposits and all proceeds of,
and all interest and dividends on, the Imposition Deposits. Any amounts deposited with Lender under this Section 7 shall not be trust funds, nor shall they operate to reduce the Indebtedness, unless applied by Lender for that purpose under
Section 7(e). 

  

	 	(c)	If Lender receives a bill or invoice for an Imposition, Lender shall pay the Imposition from the Imposition Deposits held by Lender. Lender shall have no obligation to
pay any Imposition to the extent it exceeds Imposition Deposits then held by Lender. Lender may pay an Imposition according to any bill, statement or estimate from the appropriate public office or insurance company without inquiring into the
accuracy of the bill, statement or estimate or into the validity of the Imposition. 

  
 Page C-2

  

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

  

	 	(e)	If an Event of Default has occurred and is continuing, Lender may apply any Imposition Deposits, in any amounts and in any order as Lender determines, in Lender’s
discretion, to pay any Impositions or as a credit against the Indebtedness. Upon payment in full of the Indebtedness, Lender shall refund to Borrower any Imposition Deposits held by Lender. 

 

	 	(f)	If Lender does not collect an Imposition Deposit with respect to an Imposition either marked “Deferred” in Section 7(a) or pursuant to a separate written
waiver by Lender, then on or before the date each such Imposition is due, or on the date this Instrument requires each such Imposition to be paid, Borrower must provide Lender with proof of payment of each such Imposition for which Lender does not
require collection of Imposition Deposits. Lender may revoke its deferral or waiver and require Borrower to deposit with Lender any or all of the Imposition Deposits listed in Section 7(a), regardless of whether any such item is marked
“Deferred” in such section, upon Notice to Borrower, (i) if Borrower does not timely pay any of the Impositions, (ii) if Borrower fails to provide timely proof to Lender of such payment, or (iii) at any time during the
existence of an Event of Default. 

  

	 	(g)	In the event of a Transfer prohibited by or requiring Lender’s approval under Section 21, Lender’s waiver of the collection of any Imposition Deposit in
this Section 7 may be modified or rendered void by Lender at Lender’s option by Notice to Borrower and the transferee(s) as a condition of Lender’s approval of such Transfer. 

 

	2.	A new Section 53 is hereby added as follows: 

  

	 	53.	Moisture Management Plan and Mold 

 Unless otherwise waived by Lender in writing, Borrower must have or must establish and must adhere to a moisture management plan (an “MMP”). If the Borrower is required to have an MMP, the
Borrower must keep all MMP documentation at the Mortgaged Property or at the management agent’s office and available for the Lender or the Loan Servicer to review during any annual assessment or other inspection of the Mortgaged Property that
is required by Lender. 

  
 Page C-3

 If Lender determines that Mold has developed as a result of a water intrusion event or leak,
Lender, at Lender’s discretion, may require that a professional inspector inspect the Mortgaged Property as frequently as Lender determines is necessary until any issue with Mold and its cause(s) are resolved to Lender’s satisfaction. Such
inspection shall be limited to a visual and olfactory inspection of the area that has experienced the Mold, water intrusion event or leak. Borrower shall be responsible for the cost of such professional inspection and any remediation deemed to be
necessary as a result of the professional inspection. After any issue with Mold, water intrusion or leaks is remedied to Lender’s satisfaction, Lender shall not be entitled to require a professional inspection any more frequently than once
every three years unless Lender is otherwise aware of Mold as a result of a subsequent water intrusion event or leak. 
 If
Lender or Loan Servicer determines not to conduct an annual inspection of the Mortgaged Property, and in lieu thereof Lender requests a certification, Borrower shall be prepared to provide and must actually provide to Lender a factually correct
certification each year that the annual inspection is waived to the following effect: 
 Borrower has not received any written
complaint, notice, letter or other written communication from tenants, management agent or governmental authorities regarding odors, indoor air quality, mold, fungus, microbial contamination or pathogenic organisms (“Mold”) or any
activity, condition, event or omission that causes or facilitates the growth of Mold on or in any part of the Mortgaged Property or if Borrower has received any such written complaint, notice, letter or other written communication that Borrower has
investigated and determined that no Mold activity, condition or event exists or alternatively has fully and properly remediated such activity, condition, event or omission in compliance with the Moisture Management Plan for the Mortgaged Property.

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

	3.	Items 3, 4, 5 and 7 as set forth in Exhibit B to the Security Instrument are hereby deleted; 

 

	4.	Section 1(a) is modified to add the word “reasonable” before the phrase “fees and out-of-pocket costs”. 

 

	5.	A new definition is added to Section 1 as follows: 

 “(gg) “Notice” is defined in Section 31(a).” 
  

	6.	The following sentence is added at the end of Section 7(e): 

 “Lender’s failure to pay a bill or invoice that it receives when sufficient Imposition 

  
 Page C-4

 
Deposits have been timely deposited with Lender shall not be an Event of Default.” 
  

	7.	Section 17(f) is modified by adding a comma and deleting the word “and” prior to subsection (iii) and by adding a new subsection (iv) at the
end to read as follows: 

 “and (iv) repairs and replacements done in the normal course of business that
do not have an adverse affect on the value of the Mortgaged Property.” 
  

	8.	Section l8(e) is modified to substitute the word “includes” for the phrase “may be in” in the second line. 

 

	9.	The first sentence of Section 18(e)(iii) is herby amended to add the following phrase at the beginning of the sentence: 

“To the best of Borrower’s knowledge after reasonable and diligent inquiry,” 

 

	10.	The first sentence of Section 18(e)(vi) is hereby amended to add the following phrase at the beginning of the sentence: 

“To the best of Borrower’s knowledge after reasonable and diligent inquiry,” 

 

	11.	Section 18(k) is modified to add the phrase “, which approval shall not be unreasonably withheld” at the end of the first sentence.

  

	12.	Sections 19(a), (c) and (d) are modified to add the word “reasonably” between the phrase “from time to time” and the word
“require” in each section. 

  

	13.	Section 19(g) is hereby modified to change the referenced amount of the cost of repairs in both subsections (i) and (ii) from $10,000 to $20,000, and to
increase the referenced amount of costs of repairs in subsection (ii) from $50,000 to $100,000. 

  

	14.	Section 19(h)(i) is amended by deleting the parenthetical “(or any event, which, with the giving of Notice or the passage of time, or both, would constitute
an Event of Default)”. 

  

	15.	Section 21(c)(vii)(B) is amended to add the following phrase before the semicolon: “or a sale or transfer from a trust to another trust having the same
beneficiaries.” 

  

	16.	Section 21(b) is amended to include the following subsection (iv): 

 

	 	(iv)	any transaction which consists of: 

  

	 	(A)	prior to the Escrow Termination Date (as defined below), any sale, transfer or issuance of interests in KBS Legacy Partners Apartment REIT, Inc., a publicly traded real
estate investment trust (“KBS REIT”), and 

  
 Page C-5

  

	 	(B)	commencing 12 months after KBS REIT has issued a minimum of 250,000 shares of its common stock (the “Escrow Termination Date”), any sale, transfer or
issuance of interests in KBS REIT, so long as such sale, transfer or issuance of interests in KBS REIT does not result in five (5) or fewer individuals or their affiliates, collectively, owning, directly or indirectly, more than 50 percent of
the issued and outstanding shares of beneficial interest of KBS REIT. 

  

	17.	Section 21(c)(vii)(F)(3) is amended to read as follows: 

 “Either directly or indirectly, each of C. Preston Butcher and KBS Legacy Partners Properties LLC, a Delaware limited liability company, shall retain at all times a managing interest in the
Borrower.” 
  

	18.	A new Subsection 22(m) is added as follows: 

 (m) Guarantors fail to collectively maintain the Minimum Net Worth Requirement or provide the annual net worth reporting requirements as defined and described in the Guaranty executed by C. Preston
Butcher, individually and as Trustee of the Preston Butcher Legacy Partners Business Assets Revocable Trust under declaration of trust dated May 12, 2003 and KBS Legacy Partners Properties LLC, a Delaware limited liability company (collectively
“Guarantors”), and dated as of even date with this Agreement in connection with the Loan. Lender’s remedies for an Event of Default under this Section 22(m) shall include, but shall not be limited to, requiring a letter of credit
or a partial prepayment of the Mortgage. 

  
 Page C-6

 EXHIBIT D 

APPLICABLE X 
 NOT APPLICABLE _____ 
 (Additional Obligations of New Borrower)

  

	 	1.	Replacement Reserve Agreement; 

	 	2.	Operations and Maintenance Agreement; and 

	 	3.	UCC-1 Financing Statement for recording in the Official Records of Real Property of Dallas County, Texas. 

	 	4.	UCC-1 Financing Statement for recording with the Texas Secretary of State. 

	 	5.	Borrower’s Certificate of Representations and Warranties. 

  
 Page D-1

 EXHIBIT E 

APPLICABLE X 
 NOT APPLICABLE 
 (Modification to Assumption Agreement) 

 

	1.	Section 6 is modified to add “, Replacement Reserve Agreement,” after “Repair Escrow Agreement” 

 

	2.	Section 7 is modified in its entirety to read as follows: 

  

	 	7.	Escrows for Taxes, Insurance and Other Charges. 

 On or prior to the execution of this Agreement, to ensure that sufficient funds are available for the payment of taxes, an escrow account will be established with Servicer, with payments to be made by New
Borrower to such account in the amount required by Freddie Mac and/or Servicer. 
 New Borrower will not be required to
establish and pay escrows for hazard insurance, flood insurance or ground rent. 
 The Note is hereby amended as set forth in
Exhibit C to evidence the personal liability of New Borrower and New Guarantor for any taxes, hazard insurance, flood insurance, ground rent or such other charges or assessments for which no escrow is being collected, but which are not timely
paid. On or prior to the date of this Agreement, Servicer shall refund to Original Borrower all funds escrowed pursuant to that certain Excess Funds Escrow Agreement executed by Original Borrower and Original Lender in connection with the Loan. By
execution of this Agreement, Original Borrower acknowledges and agrees that it relinquishes any right, title or interest it has or may have in any other escrow account held by Servicer in connection with the Property, except for
escrows of taxes. On or prior to the date of this Agreement, Servicer shall refund to Original Borrower all funds that Original Borrower has escrowed with Servicer pursuant to the Loan Documents for taxes . 

 

	3.	Section 10(c) is modified in its entirety to read as follows: 

 To the best of Original Borrower’s knowledge, after reasonable inquiry and investigation, all of the representations and warranties in the Loan Documents are true and correct in all material
respects, as of the date on which Original Borrower executes this Agreement. 
  

	4.	Section 14(b) is modified in its entirety to read as follows: 

 (b) Notwithstanding the release set forth in Section 14(a), if any material element of Original Borrower’s representations and warranties are materially false or misleading,

  
 Page E-1

 
Original Borrower shall remain liable to Lender for any such materially false or misleading representation or warranty, this release will be canceled and Original Borrower will remain obligated
under the Loan Documents as though there had been no release, provided however, the liability of Original Borrower for any such materially false or misleading representation or warranty shall be limited to Lender’s actual loss sustained as a
result of such materially false or misleading representation or warranty. 

  
 Page E-2Multifamily Note

 Exhibit 10.13 
 FHLMC LOAN NO. 534384196 
 MULTIFAMILY NOTE 

MULTISTATE – ADJUSTABLE RATE 
 (REVISION DATE 08-10-2009) 
  

			
	US $23,475,000.00	  	Effective Date: February 1, 2010

 FOR VALUE RECEIVED, the undersigned (together with such party’s or parties’ successors and assigns, “Borrower”), jointly and severally (if more than one) promises to pay to the
order of CBRE CAPITAL MARKETS, INC., a Texas corporation, the principal sum of TWENTY THREE MILLION FOUR HUNDRED SEVENTY FIVE THOUSAND and 00/100 DOLLARS (US $23,475,000.00), with interest on the unpaid principal balance, as hereinafter provided.

 1.        Defined Terms. 

(a)      As used in this Note: 

“Adjustable Interest Rate” means the variable annual interest rate calculated for each
Interest Adjustment Period so as to equal the Index Rate for such Interest Adjustment Period (truncated at the fifth
(5th) decimal place if necessary) plus the Margin.
However, in no event will the Adjustable Interest Rate exceed the Capped Interest Rate. 
 “Amortization
Period” means a period of 360 full consecutive calendar months. 
 “Base Recourse”
means a portion of the Indebtedness equal to zero percent (0%) of the original principal balance of this Note. 

“Business Day” means any day other than a Saturday, a Sunday or any other day on which Lender or the
national banking associations are not open for business. 
 “Capped Interest Rate” means seven
and one quarter percent (7.25%) per annum. 
 “Default Rate” means a variable annual
interest rate equal to four (4) percentage points above the Adjustable Interest Rate in effect from time to time. However, at no time will the Default Rate exceed the Maximum Interest Rate. 

“Index Rate” means, for any Interest Adjustment Period, the Reference
Bill® Index Rate for such Interest Adjustment Period. 

  
 Page 1

 “Installment Due Date” means, for any monthly installment of
interest only or principal and interest, the date on which such monthly installment is due and payable pursuant to Section 3 of this Note. The “First Installment Due Date” under this Note is March 1, 2010. 

“Interest Adjustment Period” means each successive one (1) calendar month period until the entire
Indebtedness is paid in full, except that the first Interest Adjustment Period is the period from the date of this Note through February 28, 2010. Therefore, the second Interest Adjustment Period shall be the period from March 1, 2010
through March 31, 2010, and so on until the entire Indebtedness is paid in full. 
 “Lender”
means the holder from time to time of this Note. 
 “LIBOR Index” means the British Bankers
Association’s (BBA) one (1) month LIBOR Rate for United States Dollar deposits, as displayed on the LIBOR Index Page used to establish the LIBOR Index Rate. 
 “LIBOR Index Rate” means, for any Interest Adjustment Period after the first Interest Adjustment Period, the BBA’s LIBOR Rate for the LIBOR Index released by the BBA
most recently preceding the first day of such Interest Adjustment Period, as such LIBOR Rate is displayed on the LIBOR Index Page. The LIBOR Index Rate for the first Interest Adjustment Period means the British Bankers Association’s (BBA) LIBOR
Rate for the LIBOR Index released by the BBA most recently preceding the first day of the month in which the first Interest Adjustment Period begins, as such LIBOR Rate is displayed on the LIBOR Index Page. “LIBOR Index Page” is the
Bloomberg L.P., page “BBAM”, or such other page for the LIBOR Index as may replace page BBAM on that service, or at the option of Lender (i) the applicable page for the LIBOR Index on another service which electronically transmits or
displays BBA LIBOR Rates, or (ii) any publication of LIBOR rates available from the BBA. In the event the BBA ceases to set or publish a LIBOR rate/interest settlement rate for the LIBOR Index, Lender will designate an alternative index, and
such alternative index shall constitute the LIBOR Index Page. 
 “Loan” means the loan evidenced
by this Note. 
 “Lockout Period” is not applicable, there is no Lockout Period under this Note.

 “Margin” means three and sixty two hundredths (3.62) percentage points (362 basis
points). 

  
 Page 2

 “Maturity Date” means the earlier of
(i) February 1,2017 (the “Scheduled Maturity Date”), and (ii) the date on which the unpaid principal balance of this Note becomes due and payable by acceleration or otherwise pursuant to the Loan Documents or the
exercise by Lender of any right or remedy under any Loan Document. 
 “Maximum Interest Rate”
means the rate of interest that results in the maximum amount of interest allowed by applicable law. 

“Prepayment Premium Period” means the period during which, if a prepayment of principal occurs, a
prepayment premium will be payable by Borrower to Lender. The Prepayment Premium Period is the period from and including the date of this Note until but not including the first day of the Window Period. 

“Reference Bills®” means the unsecured general obligations of the Federal Home Loan Mortgage
Corporation (“Freddie Mac”) designated by Freddie Mac as “Reference Bills®Securities” and having original durations to maturity most comparable to the term of the Reference Bill Index, and issued by Freddie Mac
at regularly scheduled auctions. In the event Freddie Mac shall at any time cease to designate any unsecured general obligations of Freddie Mac as “Reference Bills Securities”, then at the option of Lender (i) Lender may select from
time to time another unsecured general obligation of Freddie Mac having original durations to maturity most comparable to the term of the Reference Bill Index and issued by Freddie Mac at regularly scheduled auctions, and the term “Reference
Bills” as used in this Note shall mean such other unsecured general obligations as selected by Lender; or (ii) for any one or more Interest Adjustment Periods, Lender may use the applicable LIBOR Index Rate as the Index Rate for such
Interest Adjustment Period(s). 
 “Reference Bill Index” means the one month Reference Bills.
One-month reference bills have original durations to maturity of approximately 30 days. 
 “Reference Bill Index
Rate” means, for any Interest Adjustment Period after the first Interest Adjustment Period, the Money Market Yield for the Reference Bills as established by the Reference Bill auction conducted by Freddie Mac most recently preceding
the first day of such Interest Adjustment Period, as displayed on the Reference Bill Index Page. The Reference Bill Index Rate for the first Interest Adjustment Period means the Money Market Yield for the Reference Bills as established by the
Reference Bill auction conducted by Freddie Mac most recently preceding the first day of the month in which the first Interest Adjustment Period begins, as displayed on the Reference Bill Index Page. The “Reference Bill Index Page”
is the Freddie Mac Debt Securities Web Page (accessed via the Freddie Mac internet site at www.freddiemac.com), or at the option of Lender, any publication of Reference Bills auction results available

  
 Page 3

 
from Freddie Mac. However, if Freddie Mac has not conducted a Reference Bill auction within the 60-calendar day period prior to the first day of an Interest Adjustment Period, the Reference Bill
Index Rate for such Interest Adjustment Period will be the LIBOR Index Rate for such Interest Adjustment Period. 

“Remaining Amortization Period” means, at any point in time, the number of consecutive calendar months
equal to the number of months in the Amortization Period minus the number of scheduled monthly installments of principal and interest that have elapsed since the date of this Note. 

“Security Instrument” means the multifamily mortgage, deed to secure debt or deed of trust effective as of
the effective date of this Note, from Borrower to or for the benefit of Lender and securing this Note. 
 “Window
Period” means the three (3) consecutive calendar month period prior to the Scheduled Maturity Date. 

“Yield Maintenance Period” is not applicable, there is no Yield Maintenance Period under this Note.

 (b)        Other capitalized terms used but not defined in this Note shall have the
meanings given to such terms in the Security Instrument. 
 2.        Address for
Payment.   All payments due under this Note shall be payable at P.O. Box 297480, Houston, Texas 77297, or such other place as may be designated by Notice to Borrower from or on behalf of Lender. 

3.         Payments. 

(a)        Interest will accrue on the outstanding principal balance of this Note at the
Adjustable Interest Rate, subject to the provisions of Section 8 of this Note. 

(b)        Interest under this Note shall be computed, payable and allocated on the basis of an
actual/360 interest calculation schedule (interest is payable for the actual number of days in each month, and each month’s interest is calculated by multiplying the unpaid principal amount of this Note as of the first day of the month for
which interest is being calculated by the applicable Adjustable Interest Rate, dividing the product by 360, and multiplying the quotient by the number of days in the month for which interest is being calculated). For convenience in determining the
amount of a monthly installment of principal and interest under this Note, Lender will use a 30/360 interest calculation payment schedule (each year is treated as consisting of twelve 30-day months). However, as provided above, the portion of the
monthly installment actually payable as and allocated to interest will be based upon an actual/360 interest calculation schedule, and the amount of each installment attributable to principal and the amount attributable to interest will vary based
upon the number of days in the month for which such installment is 

  
 Page 4

 
paid. Each monthly payment of principal and interest will first be applied to pay in full interest due, and the balance of the monthly payment paid by Borrower will be credited to principal.

 (c)        Unless disbursement of principal is made by Lender to Borrower on the
first day of a calendar month, interest for the period beginning on the date of disbursement and ending on and including the last day of such calendar month shall be payable by Borrower simultaneously with the execution of this Note. If disbursement
of principal is made by Lender to Borrower on the first day of a calendar month, then no payment will be due from Borrower at the time of the execution of this Note. The Installment Due Date for the first monthly installment payment under
Section 3(d) of interest only or principal and interest, as applicable, will be the First Installment Due Date set forth in Section l(a) of this Note. Except as provided in this Section 3(c) and in Section 10, accrued interest will be
payable in arrears. 
 (d)        Beginning on the First Installment Due Date, and
continuing until and including the monthly installment due on the Maturity Date, principal and accrued interest shall be payable by Borrower in consecutive monthly installments due and payable on the first day of each calendar month. The amount of
the monthly installment of principal and interest payable pursuant to this Section 3(d) on an Installment Due Date shall be calculated so as to equal the monthly payment amount which would be payable on the Installment Due Date as if the unpaid
principal balance of this Note as of the first day of the Interest Adjustment Period immediately preceding the Installment Due Date was to be fully amortized, together with interest thereon at the Adjustable Interest Rate in effect for such Interest
Adjustment Period, in equal consecutive monthly payments paid on the first day of each calendar month over the Remaining Amortization Period. 
 (e)        All remaining Indebtedness, including all principal and interest, shall be due and payable by Borrower on the Maturity Date. 

(f)        Lender shall provide Borrower with Notice, given in the manner specified in the
Security Instrument, of the amount of each monthly installment due under this Note. However, if Lender has not provided Borrower with prior notice of the monthly payment due on any Installment Due Date, then Borrower shall pay on that Installment
Due Date an amount equal to the monthly installment payment for which Borrower last received notice. If Lender at any time determines that Borrower has paid one or more monthly installments in an incorrect amount because of the operation of the
preceding sentence, or because Lender has miscalculated the Adjustable Interest Rate or has otherwise miscalculated the amount of any monthly installment, then Lender shall give notice to Borrower of such determination. If such determination
discloses that Borrower has paid less than the full amount due for the period for which the determination was made, Borrower, within 30 calendar days after receipt of the notice from Lender, shall pay to Lender the full amount of the deficiency. If
such determination discloses that Borrower has paid more than the full amount due for the period for which the determination was made, then the amount of the overpayment shall be credited to the next installment(s) of interest only or principal and
interest, as applicable, due under this Note (or, if an Event of Default has occurred 

  
 Page 5

 
and is continuing, such overpayment shall be credited against any amount owing by Borrower to Lender). 
 (g)      All payments under this Note shall be made in immediately available U.S. funds. 
 (h)      Any regularly scheduled monthly installment of interest only or principal and interest payable pursuant to this Section 3 that is received by Lender before the
date it is due shall be deemed to have been received on the due date for the purpose of calculating interest due. 

(i)        Any accrued interest remaining past due for 30 days or more, at Lender’s
discretion, may be added to and become part of the unpaid principal balance of this Note and any reference to “accrued interest” shall refer to accrued interest which has not become part of the unpaid principal balance. Any amount added to
principal pursuant to the Loan Documents shall bear interest at the applicable rate or rates specified in this Note and shall be payable with such interest upon demand by Lender and absent such demand, as provided in this Note for the payment of
principal and interest. 
 (j)        In accordance with Section 14, interest
charged under this Note cannot exceed the Maximum Interest Rate. If the Adjustable Interest Rate at any time exceeds the Maximum Interest Rate, resulting in the charging of interest hereunder to be limited to the Maximum Interest Rate, then any
subsequent reduction in the Adjustable Interest Rate shall not reduce the rate at which interest under this Note accrues below the Maximum Interest Rate until the total amount of interest accrued hereunder equals the amount of interest which would
have accrued had the Adjustable Interest Rate at all times been in effect. 

4.        Application of Payments.  If at any time Lender receives, from
Borrower or otherwise, any amount applicable to the Indebtedness which is less than all amounts due and payable at such time, Lender may apply the amount received to amounts then due and payable in any manner and in any order determined by Lender,
in Lender’s discretion. Borrower agrees that neither Lender’s acceptance of a payment from Borrower in an amount that is less than all amounts then due and payable nor Lender’s application of such payment shall constitute or be deemed
to constitute either a waiver of the unpaid amounts or an accord and satisfaction. 

5.        Security.  The Indebtedness is secured by, among other things, the
Security Instrument, and reference is made to the Security Instrument for other rights of Lender as to collateral for the Indebtedness. 
 6.        Acceleration.  If an Event of Default has occurred and is continuing, the entire unpaid principal balance, any accrued interest, any
prepayment premium payable under Section 10, and all other amounts payable under this Note and any other Loan Document, shall at once become due and payable, at the option of Lender, without any prior notice to Borrower (except if notice is
required by applicable law, then after such notice). Lender may exercise this option to accelerate regardless of any prior forbearance. For purposes of exercising such option, Lender shall calculate the prepayment premium as if prepayment occurred
on the date of 

  
 Page 6

 
acceleration. If prepayment occurs thereafter, Lender shall recalculate the prepayment premium as of the actual prepayment date. 

7.        Late Charge. 

(a)      If any monthly installment of interest or principal and interest or other amount payable under
this Note or under the Security Instrument or any other Loan Document is not received in full by Lender within five (5) days after the installment or other amount is due, counting from and including the date such installment or other amount is
due (unless applicable law requires a longer period of time before a late charge may be imposed, in which event such longer period shall be substituted), Borrower shall pay to Lender, immediately and without demand by Lender, a late charge equal to
five percent (5%) of such installment or other amount due (unless applicable law requires a lesser amount be charged, in which event such lesser amount shall be substituted). 

(b)      Borrower acknowledges that its failure to make timely payments will cause Lender to incur
additional expenses in servicing and processing the Loan and that it is extremely difficult and impractical to determine those additional expenses. Borrower agrees that the late charge payable pursuant to this Section represents a fair and
reasonable estimate, taking into account all circumstances existing on the date of this Note, of the additional expenses Lender will incur by reason of such late payment. The late charge is payable in addition to, and not in lieu of, any interest
payable at the Default Rate pursuant to Section 8. 
 8.        Default
Rate. 
 (a)      So long as (i) any monthly installment under this Note remains past due
for thirty (30) days or more or (ii) any other Event of Default has occurred and is continuing, then notwithstanding anything in Section 3 of this Note to the contrary, interest under this Note shall accrue on the unpaid principal
balance from the Installment Due Date of the first such unpaid monthly installment or the occurrence of such other Event of Default, as applicable, at the Default Rate. 
 (b)      From and after the Maturity Date, the unpaid principal balance shall continue to bear interest at the Default Rate until and including the date on which the entire
principal balance is paid in full. 
 (c)      Borrower acknowledges that (i) its failure to
make timely payments will cause Lender to incur additional expenses in servicing and processing the Loan, (ii) during the time that any monthly installment under this Note is delinquent for thirty (30) days or more, Lender will incur
additional costs and expenses arising from its loss of the use of the money due and from the adverse impact on Lender’s ability to meet its other obligations and to take advantage of other investment opportunities; and (iii) it is
extremely difficult and impractical to determine those additional costs and expenses. Borrower also acknowledges that, during the time that any monthly installment under this Note is delinquent for thirty (30) days or more or any other Event

  
 Page 7

 
of Default has occurred and is continuing, Lender’s risk of nonpayment of this Note will be materially increased and Lender is entitled to be compensated for such increased risk. Borrower
agrees that the increase in the rate of interest payable under this Note to the Default Rate represents a fair and reasonable estimate, taking into account all circumstances existing on the date of this Note, of the additional costs and expenses
Lender will incur by reason of the Borrower’s delinquent payment and the additional compensation Lender is entitled to receive for the increased risks of nonpayment associated with a delinquent loan. 

9.        Limits on Personal Liability. 

(a)      Except as otherwise provided in this Section 9, Borrower shall have no personal liability
under this Note, the Security Instrument or any other Loan Document for the repayment of the Indebtedness or for the performance of any other obligations of Borrower under the Loan Documents and Lender’s only recourse for the satisfaction of
the Indebtedness and the performance of such obligations shall be Lender’s exercise of its rights and remedies with respect to the Mortgaged Property and to any other collateral held by Lender as security for the Indebtedness. This limitation
on Borrower’s liability shall not limit or impair Lender’s enforcement of its rights against any guarantor of the Indebtedness or any guarantor of any other obligations of Borrower. 

(b)      Borrower shall be personally liable to Lender for the amount of the Base Recourse, plus any other
amounts for which Borrower has personal liability under this Section 9. 
 (c)      In
addition to the Base Recourse, Borrower shall be personally liable to Lender for the repayment of a further portion of the Indebtedness equal to any loss or damage suffered by Lender as a result of the occurrence of any of the following events:

  

	 	(i)	Borrower fails to pay to Lender upon demand after an Event of Default all Rents to which Lender is entitled under Section 3(a) of the Security Instrument and the
amount of all security deposits collected by Borrower from tenants then in residence. However, Borrower will not be personally liable for any failure described in this subsection (i) if Borrower is unable to pay to Lender all Rents and security
deposits as required by the Security Instrument because of a valid order issued in a bankruptcy, receivership, or similar judicial proceeding. 

  

	 	(ii)	Borrower fails to apply all insurance proceeds and condemnation proceeds as required by the Security Instrument. However, Borrower will not be personally liable for any
failure described in this subsection (ii) if Borrower is unable to apply insurance or condemnation proceeds as required by the Security Instrument because of a valid order issued in a bankruptcy, receivership, or similar judicial proceeding.

  
 Page 8

	 	(iii)	Borrower fails to comply with Section 14(g) or (h) of the Security Instrument relating to the delivery of books and records, statements, schedules and
reports. 

  

	 	(iv)	Borrower fails to pay when due in accordance with the terms of the Security Instrument the amount of any item below marked “Deferred”; provided however, that
if no item is marked “Deferred”, this Section 9(c)(iv) shall be of no force or effect. 

  

			
	[Deferred]	    	Hazard Insurance premiums or other insurance premiums,
	[Collect]	    	Taxes,
	[Deferred]	    	water and sewer charges (that could become a lien on the Mortgaged Property),
	[N/A]	    	ground rents,
	[Deferred]	    	assessments or other charges (that could become a lien on the Mortgaged Property)

 (d)      In addition to the Base Recourse, Borrower shall be personally liable to Lender for: 

 

	 	(i)	the performance of all of Borrower’s obligations under Section 18 of the Security Instrument (relating to environmental matters); 

 

	 	(ii)	the costs of any audit under Section 14(g) of the Security Instrument; and 

 

	 	(iii)	any costs and expenses incurred by Lender in connection with the collection of any amount for which Borrower is personally liable under this Section 9, including
Attorneys’ Fees and Costs and the costs of conducting any independent audit of Borrower’s books and records to determine the amount for which Borrower has personal liability. 

(e)        All payments made by Borrower with respect to the Indebtedness and all amounts
received by Lender from the enforcement of its rights under the Security Instrument and the other Loan Documents shall be applied first to the portion of the Indebtedness for which Borrower has no personal liability. 

(f)        Notwithstanding the Base Recourse, Borrower shall become personally liable to Lender
for the repayment of all of the Indebtedness upon the occurrence of any of the following Events of Default: 
  

	 	(i)	Borrower’s ownership of any property or operation of any business not permitted by Section 33 of the Security Instrument; 

  
 Page 9

	 	(ii)	a Transfer (including, but not limited to, a lien or encumbrance) that is an Event of Default under Section 21 of the Security Instrument, other than a Transfer
consisting solely of the involuntary removal or involuntary withdrawal of a general partner in a limited partnership or a manager in a limited liability company; or 

 

	 	(iii)	fraud or written material misrepresentation by Borrower or any officer, director, partner, member or employee of Borrower in connection with the application for or
creation of the Indebtedness or any request for any action or consent by Lender. 

(g)        To the extent that Borrower has personal liability under this Section 9, Lender
may exercise its rights against Borrower personally without regard to whether Lender has exercised any rights against the Mortgaged Property or any other security, or pursued any rights against any guarantor, or pursued any other rights available to
Lender under this Note, the Security Instrument, any other Loan Document or applicable law. To the fullest extent permitted by applicable law, in any action to enforce Borrower’s personal liability under this Section 9, Borrower waives any
right to set off the value of the Mortgaged Property against such personal liability. 

10.        Voluntary and Involuntary Prepayments. 

(a)        Any receipt by Lender of principal due under this Note prior to the Maturity Date,
other than principal required to be paid in monthly installments pursuant to Section 3, constitutes a prepayment of principal under this Note. Without limiting the foregoing, any application by Lender, prior to the Maturity Date, of any
proceeds of collateral or other security to the repayment of any portion of the unpaid principal balance of this Note constitutes a prepayment under this Note. 
 (b)        Borrower may not voluntarily prepay any portion of the principal balance of this Note during the Lockout Period, if a Lockout Period is applicable to
this Note. However, if any portion of the principal balance of this Note is prepaid during the Lockout Period by reason of the application by Lender of any proceeds of collateral or other security to any portion of the unpaid principal balance of
this Note or following a determination that the prohibition on voluntary prepayments during the Lockout Period is in contravention of applicable law, then Borrower must also pay to Lender upon demand by Lender, a prepayment premium equal to five
percent (5.0%) of the amount of principal being prepaid. 
 (c)        Following
the end of the Lockout Period, Borrower may voluntarily prepay all of the unpaid principal balance of this Note on an Installment Due Date so long as Borrower designates the date for such prepayment in a Notice from Borrower to Lender given at least
30 days prior to the date of such prepayment. If an Installment Due Date (as defined in Section l(a)) falls on a day which is not a Business Day, then with respect to payments made under this 

  
 Page 10

 
Section 10 only, the term “Installment Due Date” shall mean the Business Day immediately preceding the scheduled Installment Due Date. 

(d)        Notwithstanding subsection (c) above, Borrower may voluntarily prepay all of the
unpaid principal balance of this Note on a Business Day other than an Installment Due Date if Borrower provides Lender with the Notice set forth in subsection (c) and meets the other requirements set forth in this subsection. Borrower
acknowledges that Lender has agreed that Borrower may prepay principal on a Business Day other than an Installment Due Date only because Lender shall deem any prepayment received by Lender on any day other than an Installment Due Date to have been
received on the Installment Due Date immediately following such prepayment and Borrower shall be responsible for all interest that would have been due if the prepayment had actually been made on the Installment Due Date immediately following such
prepayment. 
 (e)        Unless otherwise expressly provided in the Loan Documents,
Borrower may not voluntarily prepay less than all of the unpaid principal balance of this Note. In order to voluntarily prepay all or any part of the principal of this Note, Borrower must also pay to Lender, together with the amount of principal
being prepaid, (i) all accrued and unpaid interest due under this Note, plus (ii) all other sums due to Lender at the time of such prepayment, plus (iii) any prepayment premium calculated pursuant to Section 10(f). 

(f)        Except as provided in Section 10(g), a prepayment premium shall be due and
payable by Borrower in connection with any prepayment of principal under this Note during the Prepayment Premium Period. The prepayment premium shall be: 
  

	 	(i)	5.0% of the amount of principal being prepaid if the prepayment occurs prior to the twelfth (12th) Installment Due Date under this Note; or

  

	 	(ii)	4.0% of the amount of principal being prepaid if the prepayment occurs on or after the twelfth (12th) Installment Due Date under this Note and prior to the
twenty-fourth (24th) Installment Due Date under this Note; or 

  

	 	(iii)	3.0% of the amount of principal being prepaid if the prepayment occurs on or after the twenty-fourth (24th) Installment Due Date under this Note and prior to the
thirty-sixth (36th) Installment Due Date under this Note; or 

  

	 	(iv)	2.0% of the amount of principal being prepaid if the prepayment occurs on or after the thirty-sixth (36th) Installment Due Date under this Note and prior to the
forty-eighth (48th) Installment Due Date under this Note; or 

  

	 	(v)	1.0% of the amount of principal being prepaid if the prepayment occurs on or after the forty-eighth (48th) Installment Due Date under this Note.

  
 Page 11

 (g)        Notwithstanding any other provision of
this Section 10, no prepayment premium shall be payable with respect to (i) any prepayment made during the Window Period, or (ii) any prepayment occurring as a result of the application of any insurance proceeds or condemnation award
under the Security Instrument, or (iii) any prepayment of the entire principal balance of this Note that occurs on or after the sixtieth (60th) Installment Due Date under this Note with the proceeds of a fixed interest rate or
fixed-to-float interest rate mortgage loan that is the subject of a binding commitment for purchase between the Freddie Mac and a Freddie Mac-approved Program Plus® Seller/Servicer. 

(h)        Unless Lender agrees otherwise in writing, a permitted or required prepayment of less
than the unpaid principal balance of this Note shall not extend or postpone the due date of any subsequent monthly installments or change the amount of such installments. 
 (i)         Borrower recognizes that any prepayment of any of the unpaid principal balance of this Note, whether voluntary or involuntary or resulting from an
Event of Default by Borrower, will result in Lender’s incurring loss, including reinvestment loss, additional expense and frustration or impairment of Lender’s ability to meet its commitments to third parties. Borrower agrees to pay to
Lender upon demand damages for the detriment caused by any prepayment, and agrees that it is extremely difficult and impractical to ascertain the extent of such damages. Borrower therefore acknowledges and agrees that the formula for calculating
prepayment premiums set forth in this Note represents a reasonable estimate of the damages Lender will incur because of a prepayment. Borrower further acknowledges that any lockout and prepayment premium provisions of this Note are a material part
of the consideration for the Loan, and that the terms of this Note are in other respects more favorable to Borrower as a result of the Borrower’s voluntary agreement to the lockout and prepayment premium provisions. 

11.        Costs and Expenses.   To the fullest extent allowed by applicable
law, Borrower shall pay all expenses and costs, including Attorneys’ Fees and Costs incurred by Lender as a result of any default under this Note or in connection with efforts to collect any amount due under this Note, or to enforce the
provisions of any of the other Loan Documents, including those incurred in post-judgment collection efforts and in any bankruptcy proceeding (including any action for relief from the automatic stay of any bankruptcy proceeding) or judicial or
non-judicial foreclosure proceeding. 
 12.        Forbearance.   Any
forbearance by Lender in exercising any right or remedy under this Note, the Security Instrument, or any other Loan Document or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of that or any other right or
remedy. The acceptance by Lender of any payment after the due date of such payment, or in an amount which is less than the required payment, shall not be a waiver of Lender’s right to require prompt payment when due of all other payments or to
exercise any right or remedy with respect to any failure to make prompt payment. Enforcement by Lender of any security for Borrower’s obligations under this Note shall not constitute an election by Lender of remedies so as to preclude the
exercise of any other right or remedy available to Lender. 

  
 Page 12

 13.        Waivers.   Borrower and
all endorsers and guarantors of this Note and all other third party obligors waive presentment, demand, notice of dishonor, protest, notice of acceleration, notice of intent to demand or accelerate payment or maturity, presentment for payment,
notice of nonpayment, grace, and diligence in collecting the Indebtedness. 

14.        Loan Charges (Texas Only).   Borrower and Lender intend at all times
to comply with the law of the State of Texas governing the Maximum Interest Rate or maximum amount of interest payable on or in connection with this Note and the Indebtedness (or applicable United States federal law to the extent that it permits
Lender to contract for, charge, take, reserve or receive a greater amount of interest than under Texas law). If the applicable law is ever judicially interpreted so as to render usurious any amount payable under this Note or under any other Loan
Document, or contracted for, charged, taken, reserved or received with respect to the Indebtedness, or as a result of acceleration of the maturity of this Note, or if any prepayment by Borrower results in Borrower having paid any interest in excess
of that permitted by any applicable law, then Borrower and Lender expressly intend that all excess amounts collected by Lender shall be applied to reduce the unpaid principal balance of this Note (or, if this Note has been or would thereby be paid
in full, shall be refunded to Borrower), and the provisions of this Note, the Security Instrument and any other Loan Documents immediately shall be deemed reformed and the amounts thereafter collectible under this Note or any other Loan Document
reduced, without the necessity of the execution of any new documents, so as to comply with any applicable law, but so as to permit the recovery of the fullest amount otherwise payable under this Note or any other Loan Document. The right to
accelerate the Maturity Date of this Note does not include the right to accelerate any interest, which has not otherwise accrued on the date of such acceleration, and Lender does not intend to collect any unearned interest in the event of
acceleration. All sums paid or agreed to be paid to Lender for the use, forbearance or detention of the Indebtedness shall, to the extent permitted by any applicable law, be amortized, prorated, allocated and spread throughout the full term of the
Indebtedness until payment in full so that the rate or amount of interest on account of the Indebtedness does not exceed the applicable usury ceiling. Notwithstanding any provision contained in this Note, the Security Instrument or any other Loan
Document that permits the compounding of interest, including any provision by which any accrued interest is added to the principal amount of this Note, the total amount of interest that Borrower is obligated to pay and Lender is entitled to receive
with respect to the Indebtedness shall not exceed the amount calculated on a simple (i.e., non-compounded) interest basis at the maximum rate on principal amounts actually advanced to or for the account of Borrower, including all current and
prior advances and any advances made pursuant to the Security Instrument or other Loan Documents (such as for the payment of taxes, insurance premiums and similar expenses or costs). 

15.        Commercial Purpose.   Borrower represents that Borrower is incurring
the Indebtedness solely for the purpose of carrying on a business or commercial enterprise, and not for personal, family, household, or agricultural purposes. 
 16.        Counting of Days.   Except where otherwise specifically provided, any reference in this Note to a period of “days” means
calendar days, not Business Days. 

  
 Page 13

 17.        Governing Law.   This
Note shall be governed by the law of the Property Jurisdiction. 

18.        Captions.   The captions of the Sections of this Note are for
convenience only and shall be disregarded in construing this Note. 

19.        Notices; Written Modifications. 

(a)        All Notices, demands and other communications required or permitted to be given
pursuant to this Note shall be given in accordance with Section 31 of the Security Instrument. 

(b)        Any modification or amendment to this Note shall be ineffective unless in writing
signed by the party sought to be charged with such modification or amendment; provided, however, that in the event of a Transfer under the terms of the Security Instrument that requires Lender’s consent, any or some or all of the Modifications
to Multifamily Note set forth in Exhibit A to this Note may be modified or rendered void by Lender at Lender’s option, by Notice to Borrower and the transferee, as a condition of Lender’s consent. 

20.        Consent to Jurisdiction and Venue.   Borrower agrees that any
controversy arising under or in relation to this Note may be litigated in the Property Jurisdiction. The state and federal courts and authorities with jurisdiction in the Property Jurisdiction shall have jurisdiction over all controversies that
shall arise under or in relation to this Note. Borrower irrevocably consents to service, jurisdiction, and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual
residence or otherwise. However, nothing in this Note is intended to limit any right that Lender may have to bring any suit, action or proceeding relating to matters arising under this Note in any court of any other jurisdiction. 

21.        WAIVER OF TRIAL BY JURY.   BORROWER AND LENDER EACH (A) AGREES NOT TO
ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS NOTE OR THE RELATIONSHIP BETWEEN THE PARTIES AS LENDER AND BORROWER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE
EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. 

22.        State-Specific Provisions. N/A 

ATTACHED EXHIBIT.     The Exhibit noted below, if marked with an “X” in the space provided, is attached
to this Note: 

  
 Page 14

 [    ]     Exhibit A
    Modifications to Multifamily Note 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 Page 15

 SIGNATURE PAGE TO MULTIFAMLY NOTE 

IN WITNESS WHEREOF, and in consideration of the Lender’s agreement to lend Borrower the principal amount set forth
above, Borrower has signed and delivered this Note under seal or has caused this Note to be signed and delivered under seal by its duly authorized representative. Borrower intends that this Note shall be deemed to be signed and delivered as a sealed
instrument. 
  

					
	DAKOTA HILL PROPERTIES,
	 A TEXAS LIMITED PARTNERSHIP,
 a Texas limited partnership

		
	By:	    	 DAKOTA – IRET INC.,
 a Texas corporation,
 as its general
partner

  

					
		 	By:	 	 /s/ Thomas A. Wentz,
Jr.

					
		 	Name:	 	 Thomas A. Wentz,
Jr.

					
		 	Title:	 	 Vice President

 

					
	            
74-2939206                              
	Borrower’s Employer ID Number

  
 Page 16

 FHLMC LOAN NO. 534384196 

ALLONGE TO MULTIFAMILY NOTE 
 The following endorsement is made with respect to that certain Multifamily Note (the “Note”) dated as of February    1        ,
2010 executed by DAKOTA HILL PROPERTIES, A TEXAS LIMITED PARTNERSHIP, a Texas limited partnership, in favor of CBRE CAPITAL MARKETS, INC., a Texas corporation. 
 PAY TO THE ORDER OF
                                         
                   , WITHOUT RECOURSE, as of the              day
of                         , 2010. 

 

			
	CBRE CAPITAL MARKETS, INC.,
	a Texas corporation
		
	By:	 	 /s/ JAY R.
ARTHUR

			
	Name:	 	 JAY R.
ARTHUR

			
	Title	 	 SR. VICE PRESIDENT/CONTROLLER

 

  

			
	ALLONGE TO MULTIFAMILY NOTE	 	PAGE 1

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