Document:

Exhibit 10.09

 

Marquis at Stone Oak

f/k/a The Mansions at Canyon Springs

 

ASSUMPTION AND RELEASE AGREEMENT

 

This ASSUMPTION AND
RELEASE AGREEMENT (“Agreement”) is dated as of June 9, 2017, by and among BRE MF CANYON SPRINGS LLC, a
Delaware limited liability company (“Transferor”), BR CWS CANYON SPRINGS OWNER, LLC, a Delaware limited liability
company (“Transferee”), BRE APARTMENT HOLDINGS LLC, a Delaware limited liability company (“Original
Guarantor”), STEVEN J. SHERWOOD and THE STEVEN SHERWOOD TRUST, ESTABLISHED SEPTEMBER 8, 1994 (“New Guarantor”)
and FANNIE MAE, a corporation duly organized under the Federal National Mortgage Association Charter Act, as amended,
12 U.S.C. §1716 et seq. and duly organized and existing under the laws of the United States (“Fannie Mae”).

 

RECITALS: 

 

A.           Pursuant
to that certain Multifamily Loan and Security Agreement dated as of May 27, 2014, executed by and between Transferor and Wells
Fargo Bank, National Association, a national banking association (“Original Lender”) (as amended, restated,
replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”), Original Lender made
a loan to Transferor in the original principal amount of Forty-Three Million One Hundred Twenty-Five Thousand and 00/100 Dollars
($43,125,000.00) (the “Mortgage Loan”), as evidenced by, among other things, that certain Multifamily Note dated
as of May 27, 2014, executed by Transferor and made payable to Original Lender in the amount of the Mortgage Loan (as amended,
restated, replaced, supplemented or otherwise modified from time to time, the “Note”), which Note has been assigned
to Fannie Mae. The current servicer of the Mortgage Loan is Wells Fargo Bank, National Association, a national banking association
(“Loan Servicer”).

 

B.           In
addition to the Loan Agreement, the Mortgage Loan and the Note are secured by, among other things, (i) a Multifamily Mortgage,
Deed of Trust or Deed to Secure Debt dated as of May 27, 2014 and recorded May 28, 2014 in Volume 16694 and page number 1414 in
the land records of Bexar County, Texas (as amended, restated, replaced, supplemented or otherwise modified from time to time,
the “Security Instrument”) encumbering the land as more particularly described in Exhibit A attached
hereto (the “Mortgaged Property”); and (ii) an Environmental Indemnity Agreement by Transferor for the benefit
of Original Lender dated as of the date of the Loan Agreement (the “Environmental Indemnity”).

 

C.           The
Security Instrument has been assigned to Fannie Mae pursuant to that certain Assignment of Multifamily Mortgage, Deed of Trust
or Deed to Secure Debt dated as of May 27, 2014 and recorded May 28, 2014 in Volume 16694 and page number 1443 in the land records
of Bexar County, Texas.

 

D.           The
Loan Agreement, the Note, the Security Instrument, the Environmental Indemnity and any other documents executed in connection with
the Mortgage Loan, including but not limited to those listed on Exhibit B to this Agreement, are referred to collectively
as the “Loan Documents.” Transferor is liable for the payment and performance of all of Transferor's obligations
under the Loan Documents.

 

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E.           Original
Guarantor is liable under the Guaranty of Non-Recourse Obligations dated as of May 27, 2014 (the “Guaranty”). The
Loan Documents, the Guaranty and the Interest Rate Cap Reserve and Security Agreement dated as of May 27, 2014, by Transferor and
Original Lender (the “Original Interest Rate Cap Agreement”) are referred to collectively as the “Original
Loan Documents”.

 

F.           Each
of the Loan Documents has been duly assigned or endorsed to Fannie Mae.

 

G.           Fannie
Mae has been asked to consent to (i) the transfer of the Mortgaged Property to Transferee and the assumption by Transferee of the
obligations of Transferor under the Loan Documents (the “Transfer”) and (ii) the release of Original Guarantor
from its obligations under the Guaranty.

 

H.           Fannie
Mae has agreed to consent to the Transfer subject to the terms and conditions stated below.

 

AGREEMENTS: 

 

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

 

		1.	Recitals.

 

The recitals set forth above are incorporated herein
by reference.

 

		2.	Defined Terms.

 

Capitalized terms
used and not specifically defined herein have the meanings given to such terms in the Loan Agreement. The following terms, when
used in this Agreement, shall have the following meanings:

 

“Amended Loan Agreement”
means either (a) the Amendment to Multifamily Loan and Security Agreement executed by Transferee and Fannie Mae dated as of
even date herewith, together with the Loan Agreement, or (b) the Amended and Restated Multifamily Loan and Security Agreement executed
by Transferee and Fannie Mae dated as of even date herewith.

 

“Claims” means any and
all possible claims, demands, actions, costs, expenses and liabilities whatsoever, known or unknown, at law or in equity, originating
in whole or in part, on or before the date of this Agreement, which Transferor, Original Guarantor, or any of their respective
partners, members, officers, agents or employees, may now or hereafter have against the Indemnitees, if any and irrespective of
whether any such claims arise out of contract, tort, violation of laws, or regulations, or otherwise in connection with any of
the Loan Documents, including, without limitation, any contracting for, charging, taking, reserving, collecting or receiving interest
in excess of the highest lawful rate applicable thereto and any loss, cost or damage, of any kind or character, arising out of
or in any way connected with or in any way resulting from the acts, actions or omissions of the Indemnitees, including any requirement
that the Loan Documents be modified as a condition to the transactions contemplated by this Agreement, any charging, collecting
or contracting for prepayment premiums, transfer fees, or assumption fees, any breach of fiduciary duty, breach of any duty of
fair dealing, breach of confidence, breach of funding commitment, undue influence, duress, economic coercion, violation of any
federal or state securities or Blue Sky laws or regulations, conflict of interest, negligence, bad faith, malpractice, violations
of the Racketeer Influenced and Corrupt Organizations Act, intentional or negligent infliction of mental distress, tortious interference
with contractual relations, tortious interference with corporate governance or prospective business advantage, breach of contract,
deceptive trade practices, libel, slander, conspiracy or any claim for wrongfully accelerating the Note or wrongfully attempting
to foreclose on any collateral relating to the Mortgage Loan, but in each case only to the extent permitted by applicable law.

 

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“Indemnitees” means,
collectively, Original Lender, Fannie Mae, Loan Servicer and their respective successors, assigns, agents, directors, officers,
employees and attorneys, and each current or substitute trustee under the Security Instrument.

 

“Transfer Fee” means $431,250.00.

 

		3.	Assumption of Transferor's Obligations.

 

Transferor hereby assigns
and Transferee hereby assumes all of the payment and performance obligations of Transferor set forth in the Note, the Security
Instrument, the Loan Agreement, and the other Loan Documents in accordance with their respective terms and conditions, as the same
may be modified from time to time, including payment of all sums due by Transferor under the Loan Documents. Transferee further
agrees to abide by and be bound by all of the terms of the Loan Documents, all as though each of the Loan Documents had been made,
executed and delivered by Transferee.

 

		4.	Release of Transferor and Original Guarantor.

 

In reliance on Transferor's,
Original Guarantor's and Transferee's and New Guarantor's representations and warranties in this Agreement, Fannie Mae releases
Transferor and Original Guarantor from all of their respective obligations under the Original Loan Documents, provided, however,
that Transferor is not released from any liability pursuant to this Agreement, or the Environmental Indemnity, and Original Guarantor
is not released from any liability pursuant to this Agreement or the Guaranty with respect to guaranteed obligations of Transferor
under the Environmental Indemnity, in each case which liability arises and accrues prior to the date hereof, regardless of when
such liability is discovered. If any material element of the representations and warranties made by Transferor and Original Guarantor
contained herein is false as of the date of this Agreement, then the release set forth in this Section 4 will be deemed modified
as of the date of this Agreement and Transferor and Original Guarantor will remain obligated under the Original Loan Documents
with respect to liability for such material element as though there had been no such release with respect thereto.

 

		5.	Transferor's and Original Guarantor's Representations
and Warranties.

 

Transferor and Original
Guarantor represent and warrant to Fannie Mae as of the date of this Agreement that:

 

(a)          the
Note has an unpaid principal balance of $43,125,000.00 and prior to default currently bears interest at the Adjustable Rate;

 

(b)          the
Loan Documents require that monthly payments in the amount of the Monthly Debt Service Payment be made on or before the first (1st)
day of each month, continuing to and including the Maturity Date, when all sums due under the Loan Documents will be immediately
due and payable in full;

 

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(c)          there
are no defenses, offsets or counterclaims to the Note, the Security Instrument, the Loan Agreement, the Guaranty or the other Loan
Documents;

 

(d)          there
are no defaults by Transferor under the provisions of the Note, the Security Instrument, the Loan Agreement, the Guaranty or the
other Loan Documents;

 

(e)          all
provisions of the Note, the Security Instrument, the Loan Agreement, the Guaranty and other Loan Documents are in full force and
effect; and

 

(f)          there
are no subordinate liens covering or relating to the Mortgaged Property, nor are there any mechanics' liens or liens for unpaid
taxes or assessments encumbering the Mortgaged Property, nor has notice of a lien or notice of intent to file a lien been received
except for mechanics' or materialmen's liens which attach automatically under the laws of the Governmental Authority upon the commencement
of any work upon, or delivery of any materials to, the Mortgaged Property and for which Transferor is not delinquent in the payment
for any such services or materials.

 

		6.	Transferee's and New Guarantor's Representations and
Warranties.

 

Transferee
and New Guarantor represent and warrant to Fannie Mae as of the date of this Agreement that neither Transferee nor any New Guarantor
has any knowledge that any of the representations made by Transferor and Original Guarantor in Section 5 above are not true and
correct.

 

		7.	Consent to Transfer.

 

(a)          Fannie
Mae hereby consents to the Transfer and to the assumption by Transferee of all of the obligations of Transferor under the Loan
Documents, subject to the terms and conditions set forth in this Agreement. Fannie Mae's consent to the transfer of the Mortgaged
Property to Transferee is not intended to be and shall not be construed as a consent to any subsequent transfer which requires
Lender's consent pursuant to the terms of the Loan Agreement.

 

(b)          Transferor,
Transferee, New Guarantor and Original Guarantor understand and intend that Fannie Mae will rely on the representations and warranties
contained herein.

 

		8.	Intentionally Omitted.

 

		9.	Amendment and Modification of Loan Documents.

 

As additional
consideration for Fannie Mae's consent to the Transfer as provided herein, Transferee, New Guarantor and Fannie Mae hereby agree
to a modification and amendment of the Loan Documents as set forth in this Agreement and in the Amended Loan Agreement.

 

(a)          Amendment
and Modification of Security Instrument. The Security Instrument is modified as shown on Exhibit C attached to this
Agreement.

 

		10.	Consent to Key Principal Change.

 

The parties
hereby agree that the party identified as the Key Principal in the Loan Agreement is hereby changed to Steven J. Sherwood, The
Steven Sherwood Trust, Established September 8, 1994, and Bluerock Residential Growth REIT, Inc.

 

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		11.	Limitation of Amendment.

 

Except as
expressly stated herein and in the Amended Loan Agreement, all terms and conditions of the Loan Documents, including the Loan Agreement,
Note and Security Instrument, shall remain unchanged and in full force and effect.

 

		12.	Further Assurances.

 

Transferee
and New Guarantor agree at any time and from time to time upon request by Fannie Mae to take, or cause to be taken, any action
and to execute and deliver any additional documents which, in the opinion of Fannie Mae, may be necessary in order to assure to
Fannie Mae the full benefits of the amendments contained in this Agreement.

 

		13.	Modification.

 

This Agreement
and the Amended Loan Agreement embody and constitute the entire understanding among the parties with respect to the transactions
contemplated herein, and all prior or contemporaneous agreements, understandings, representations, and statements, oral or written,
are merged into this Agreement. Neither this Agreement nor any provision hereof may be waived, modified, amended, discharged, or
terminated except by an instrument in writing signed by the party against which the enforcement of such waiver, modification, amendment,
discharge, or termination is sought, and then only to the extent set forth in such instrument. Except as expressly modified by
this Agreement and the Amended Loan Agreement, the Loan Documents shall remain in full force and effect and this Agreement shall
have no effect on the priority or validity of the liens set forth in the Security Instrument or the other Loan Documents, which
are incorporated herein by reference. Transferee and New Guarantor hereby ratify the agreements made by Transferor and Original
Guarantor to Fannie Mae in connection with the Mortgage Loan and agree(s) that, except to the extent modified hereby and in the
Amended Loan Agreement, all of such agreements remain in full force and effect.

 

		14.	Priority; No Impairment of Lien.

 

Nothing
set forth herein shall affect the priority, validity or extent of the lien of any of the Loan Documents, nor, except as expressly
set forth herein, release or change the liability of any party who may now be or after the date of this Agreement, become liable,
primarily or secondarily, under the Loan Documents.

 

		15.	Costs.

 

Transferee
and Transferor agree to pay all fees and costs (including attorneys' fees) incurred by Fannie Mae and the Loan Servicer in connection
with Fannie Mae's consent to and approval of the Transfer, and the Transfer Fee in consideration of the consent to that transfer.

 

		16.	Financial Information.

 

Transferee
and New Guarantor represent and warrant to Fannie Mae that all financial information and information regarding the management capability
of Transferee and New Guarantor provided to the Loan Servicer or Fannie Mae was true and correct as of the date provided to the
Loan Servicer or Fannie Mae and remains materially true and correct as of the date of this Agreement.

 

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		17.	Indemnification.

 

(a)          Transferee
and Transferor and Original Guarantor and New Guarantor each unconditionally and irrevocably releases and forever discharges the
Indemnitees from all Claims, agrees to indemnify the Indemnitees, and hold them harmless from any and all claims, losses, causes
of action, costs and expenses of every kind or character in connection with the Claims or the transfer of the Mortgaged Property.
Notwithstanding the foregoing, Transferor and Original Guarantor shall not be responsible for any Claims arising from the action
or inaction of Transferee and New Guarantor, and Transferee and New Guarantor shall not be responsible for any Claims arising from
the action or inaction of Transferor or Original Guarantor.

 

(b)          This
release is accepted by Fannie Mae and Loan Servicer pursuant to this Agreement and shall not be construed as an admission of liability
on the part of any party.

 

(c)          Each
of Transferor and Transferee and Original Guarantor and New Guarantor hereby represents and warrants that it has not assigned,
pledged or contracted to assign or pledge any Claim to any other person.

 

		18.	Non-Recourse.

 

Solely
respecting the Transferee and the New Guarantor, and without limitation on Section 4 respecting the Transferor and the Original
Guarantor, Article 3 (Personal Liability) of the Loan Agreement is hereby incorporated herein as if fully set forth in the body
of this Agreement.

 

		19.	Governing Law; Consent to Jurisdiction and Venue.

 

Section
15.01 (Governing Law; Consent to Jurisdiction and Venue) of the Loan Agreement is hereby incorporated herein as if fully set forth
in the body of this Agreement.

 

		20.	Notice.

 

(a)          Process
of Serving Notice.

 

All notices under this Agreement shall be:

 

(1)         in
writing and shall be:

 

(A)         delivered,
in person;

 

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

 

(C)         sent
by overnight courier; or

 

(D)         sent
by electronic mail with originals to follow by overnight courier;

 

(2)         addressed
to the intended recipient at its respective address set forth at the end of this Agreement; and

 

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

 

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

 

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

 

(b)          Change
of Address.

 

Any party
to this Agreement may change the address to which notices intended for it are to be directed by means of notice given to the other
parties to this Agreement in accordance with this Section 20.

 

(c)          Default
Method of Notice.

 

Any required
notice under this Agreement which does not specify how notices are to be given shall be given in accordance with this Section 20.

 

(d)          Receipt
of Notices.

 

No party
to this Agreement shall refuse or reject delivery of any notice given in accordance with this Agreement. Each party is required
to acknowledge, in writing, the receipt of any notice upon request by the other party.

 

		21.	Counterparts.

 

This Agreement
may be executed in any number of counterparts, each of which shall be considered an original for all purposes; provided, however,
that all such counterparts shall constitute one and the same instrument.

 

		22.	Severability; Entire Agreement; Amendments.

 

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

 

		23.	Construction.

 

(a)          The
captions and headings of the sections of this Agreement are for convenience only and shall be disregarded in construing this Agreement.

 

(b)          Any
reference in this Agreement to an “Exhibit” or “Schedule” or a “Section” or an “Article”
shall, unless otherwise explicitly provided, be construed as referring, respectively, to an exhibit or schedule attached to this
Agreement or to a Section or Article of this Agreement. All exhibits and schedules attached to or referred to in this Agreement,
if any, are incorporated by reference into this Agreement.

 

(c)          Any
reference in this Agreement to a statute or regulation shall be construed as referring to that statute or regulation as amended
from time to time.

 

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(d)          Use
of the singular in this Agreement includes the plural and use of the plural includes the singular.

 

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

 

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

 

(g)          Unless
otherwise provided in this Agreement, if Lender's approval is required for any matter hereunder, such approval may be granted or
withheld in Lender's sole and absolute discretion.

 

(h)          Unless
otherwise provided in this Agreement, if Lender's designation, determination, selection, estimate, action or decision is required,
permitted or contemplated hereunder, such designation, determination, selection, estimate, action or decision shall be made in
Lender's sole and absolute discretion.

 

(i)          All
references in this Agreement to a separate instrument or agreement shall include such instrument or agreement as the same may be
amended or supplemented from time to time pursuant to the applicable provisions thereof.

 

“Lender may” shall mean at Lender's discretion,
but shall not be an obligation.

 

		24.	WAIVER OF TRIAL BY JURY.

 

TO THE MAXIMUM
EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO (A) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT
TO ANY ISSUE ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR THE RELATIONSHIP BETWEEN THE PARTIES, 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.

 

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

 

	 	TRANSFEROR:
	 	 
	 	BRE MF CANYON SPRINGS LLC, a Delaware
	 	limited liability company
	 	 	 
	 	By:	/s/ Ola Hixon
	 	 	Name: Ola Hixon
	 	 	Title: Vice President
	 	 	 
	 	Notice Address: 345 Park Avenue
	 	New York, New York 10154

 

	STATE OF  NEW YORK	NEW YORK 	County ss:

 

BEFORE ME, the undersigned, a Notary Public
in and for said County and State, on this day personally appeared 
Ola Hixon , known to me to be the 
Vice President of BRE MF Canyon Springs LLC, the limited liability company that executed the foregoing instrument, known
to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of
the said limited liability company, and that he/she executed the same as the act of such limited liability company for the purposes
and consideration therein expressed and in the capacity therein stated.

 

GIVEN UNDER MY HAND
AND SEAL OF OFFICE this  26th day of May  

 

	 	
	 	Notary Public in and for _____________________ County,

 ______________

 

	My Commission Expires: ____________	LOUISA D. LUNA
	 	Notary Public, State of New York
	 	No. 01.1116194439
	 	Qualified in Kings County
	 	Commission Expires 09/29/2020

 

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    6625	Page S-1
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	 	ORIGINAL GUARANTOR:
	 	 
	 	BRE APARTMENT HOLDINGS LLC, a
	 	Delaware limited liability company
	 	 	 
	 	By:	/s/ Ola Hixson
	 	 	Name: Ola Hixson
	 	 	Title: Vice President

 

	 	Notice Address:	345 Park Avenue
	 	 	New York, New York 10154

 

	STATE OF  NEW YORK 	NEW YORK 	County ss:

 

BEFORE ME, the undersigned, a Notary Public
in and for said County and State, on this day personally appeared 
Ola Nixon, known to me to be the Vice President of BRE
Apartment Holdings LLC, the limited liability company that executed the foregoing instrument, known to me to be the person whose
name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said limited liability
company, and that he/she executed the same as the act of such limited liability company for the purposes and consideration therein
expressed and in the capacity therein stated.

 

GIVEN UNDER
MY HAND AND SEAL OF OFFICE this 26 day of May,
2017

 

	 	/s/ Louisa D. Luna
	 	 
	 	Notary Public in and for _____________________ County,

 ______________

 

	My Commission Expires: _____________	
        LOUISA D. LUNA

        Notary Public, State of New York

        No.
        011.116194439

        Qualified in Kings County

        Commission Expires 09/29/20122:±r

 

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    Release Agreement 

    Fannie Mae	Form 6625

        08-13
	Page S-2

        © 2013 Fannie Mae

 

     

     

    

 

	 	TRANSFEREE:
	 	 
	 	BR CWS CANYON SPRINGS OWNER, LLC, a Delaware limited liability company

 

	 	By:	BR CWS 2017 Portfolio JV, LLC, a Delaware limited liability company, its sole member

 

	 	By:	BR CWS Portfolio Member, LLC, a
	 	 	Delaware linf 'ability company, its manager

 

	 	By:	/s/ Jordan B Ruddy
	 		Jordan B Ruddy
	 	 	Authorized Signatory

 

	 	The name, chief executive office and organizational identification number of Borrower (as Debtor under any applicable Uniform Commercial Code) are:
	 	 
	 	Debtor Name/Record Owner:
	 	BR CWS Canyon Springs Owner, LLC

 

	 	Debtor Chief Executive Office Address:
	 	Bluerock Real Estate, L.L.C.
	 	712 Fifth Avenue, 9th Floor
	 	New York, New York 10019
	 	 
	 	Debtor Organizational ID Number: 6356655

 

	 	Notice Address:	c/o Bluerock Real Estate, L.L.C. 712 Fifth Avenue, 9th Floor New York, New York 10019 Attention: Jordan B. Ruddy
	 	 	 
	 	with a copy to:	CWS Capital Partners LLC 14 Corporate Playa, Suite 210 Newport Beach, CA 92660

 

[Acknowledgement Follows on Next Page]

 

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	STATE OF 	 New York	 	New York	County ss:

 

BEFORE ME, the undersigned,
a Notary Public in and for said County and State, on this day personally appeared Jordan B. Ruddy, known to me to be the Authorized
Signatory of BR CWS Portfolio Member, LLC, a Delaware limited liability company, the manager of BR CWS 2017 Portfolio JV, LLC,
a Delaware limited liability company, the sole member of BR CWS Canyon Springs Owner, LLC, the limited liability company that executed
the foregoing instrument, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to
me that the same was the act of the said limited liability company, and that he/she executed the same as the act of such limited
liability company for the purposes and consideration therein expressed and in the capacity therein stated.

 

GIVEN UNDER
MY HAND AND SEAL OF OFFICE this 22 day of  May 2017.

 

	 	/s/ Dale Pozzi
	 	Notary Public in and for New York County,
	 	New York

 

	My Commission Expires: ________	 

 

	 	DALE POZZI 

NOTARY PUBLIC-STATE OF NEW YORK 

No. 01P06270397 

Qualified In New York County 

My Commission Expires 01-28-2021

 

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	 	NEW GUARANTOR:
	 	 
	 	/s/ Steven J. Sherwood
	 	Steven J. Sherwood
	 	 
	 	Address for Notices to Guarantor:
	 	9606 North Mopac Expressway, Suite 500
	 	Austin, Texas 78759
	 	Email address: mbarlow@cwscapital.com 
	 	gcarrnell@cwscapital.com 
	 	brose@cwscapital.com 

 

	A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

ACKNOWLEDGMENT

 

State of-Texas

 

County of  Tarrant

 

On
April 24, 2017 before me, 
Caroline Reynolds, Notary Public

(Insert name and Title of the Officer)

personally appeared Steven J. Sherwood, 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 Texas that the

foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

Signature /s/ Caroline Reynolds (Seal)

 

Commission Expires 05-06-2017

 

Commission Expires I

	Assumption and Release

        Agreement Fannie Mae
	Form 6625

        08-13
	Page S-5

        © 2013 Fannie Mae

 

     

     

    

 

	 	GUARANTOR:
	 	 
	 	THE STEVEN SHERWOOD TRUST, ESTABLISHED SEPTEMBER 8, 1994, a California trust
	 	 
	 	By: 	/s/ Steven J. Sherwood
	 	 	Steven J. Sherwood
	 	 	Trustee
	 	 
	 	Address for Notices to Guarantor:
	 	9606 North Mopac Expressway, Suite 500 

Austin, Texas 78759
	 	
        Email address: mbarlow@cwscapital.com

          gcarmell@cwscapital.com

           brose@cwscapital.com

 

	A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

ACKNOWLEDGMENT

 

State of
Texas

 

County of Tarrant

 

On 
April 24, 2017  before me, /s/
Caroline Reynolds, Notary Public 

(Insert Name and Title of the Officer)

personally appeared Steven
J. Sherwood, 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 PURJURY under the laws of the State
of Texas that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	Signature 	/s/ Caroline Reynolds	 (Seal)	 

 

Commission Expires 05-06-2017

 

	Assumption and Release Agreement

        Fannie Mae
	Form 6625

        08-13
	Page S-6

        © 2013 Fannie Mae

 

     

     

    

 

	 	FANNIE MAE:
	 	 	 
	 	By:	Wells Fargo Bank, National Association, a national banking association, its attorney-in-fact

 

	 	By:	/s/ Christian Adrian
	 	 	Christian Adrian
	 	 	Managing Director

 

	 	Notice Address:	Attention: Multifamily Operations
	 	 	- Asset Management
	 	 	Drawer AM
	 	 	3900 Wisconsin Avenue, N.W.
	 	 	Washington, DC 20016

 

	STATE OF 	 New York, New York	 		County ss:

 

BEFORE ME, the undersigned,
a Notary Public in and for said County and State, on this day personally appeared Christian Adrian, known to me to be the Managing
Director of Wells Fargo Bank, National Association, the national banking association, as attorney-in-fact for Fannie Mae, that
executed the foregoing instrument, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of the said national banking association, and that he/she executed the same as the act of such
national banking association for the purposes and consideration therein expressed and in the capacity therein stated.

 

GIVEN UNDER MY HAND AND SEAL OF OFFICE this19th
day of May .  2017.

 

	 	/s/ Geeta Singh Ludwiczak	 
	 	Notary Public in and for __________ County,	 
	 	_______________	 
	 	 	 
	 	Geeta Singh Ludwiczak	 
	 	Notary Public State of new York 	 
	 	New York County 	 
	 	LIC #01LU6078059	 
	 	Commission Expires 6/7/19	 

 

	Assumption and Release Agreement	Form 6625	Page S-7
	Fannie Mae	08-13	© 2013 Fannie Mae

 

     

     

    

 

EXHIBIT A to

ASSUMPTION AND RELEASE AGREEMENT

 

[Description of the Land]

 

LOTS 3, 4, AND 5, BLOCK 21, CB 4929, THE
MANSIONS AT CANYON SPRINGS II, BEXAR COUNTY, TEXAS, ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN VOLUME 9570, PAGES 154-156,
DEED AND PLAT RECORDS OF BEXAR COUNTY, TEXAS.

 

	Assumption and Release Agreement	Form 6625	Page A-1
	Fannie Mae	08-13	© 2013 Fannie Mae

 

     

     

    

 

EXHIBIT B to

ASSUMPTION AND RELEASE AGREEMENT

 

		1.	Multifamily Loan and Security Agreement (including any amendments, riders, exhibits, addenda or supplements, if any) dated
as of May 27, 2014, by and between Transferor and Original Lender.

 

		2.	Multifamily Note dated as of May 27, 2014, by Transferor for the benefit of Original• Lender (including any amendments,
riders, exhibits, addenda or supplements, if any).

 

		3.	Multifamily Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, (including any amendments,
riders, exhibits, addenda or supplements, if any) dated as of May 27, 2014, by Transferor for the benefit of Original Lender.

 

		4.	Environmental Indemnity Agreement dated as of May 27, 2014, by Transferor for the benefit of Original Lender (including any
amendments, riders, exhibits, addenda or supplements, if any).

 

	Assumption and Release Agreement	Form 6625	Page B-1
	Fannie Mae	08-13	© 2013 Fannie Mae

 

     

     

    

 

EXHIBIT C to

ASSUMPTION AND RELEASE AGREEMENT

 

[Modification to Security Instrument]

 

		1.	Section 1(m) of the Security Instrument is modified to remove the following from the end thereof:

 

(but excluding any trademarks,
trade names or goodwill relating to the names “Orion” or “Blackstone” or any derivatives thereof);

 

		2.	Section 1(m) of the Security Instrument is further modified by adding the following to the end
thereof:

 

, excluding the names “CWS”, “Marq”
and “Marquis”.

 

		3.	Section 3(b) of the Security Instrument is modified by deleting the following phrase from the last sentence of the section:

 

to its direct and indirect partners and members”.

 

	Assumption and Release Agreement	Form 6625	Page C-1
	Fannie Mae	08-13	© 2013 Fannie Mae

 

     

     

    

 

	 	/s/ initials	 
	 	Borrower Initials	 

 

	Assumption and Release Agreement	Form 6625	Page C-2
	Fannie Mae	08-13	© 2013 Fannie MaeExhibit 10.10

 

Marquis at Stone Oak

f/k/a The Mansions at Canyon Springs

 

INTEREST RATE CAP RESERVE AND SECURITY
AGREEMENT

 

This INTEREST RATE CAP RESERVE AND
SECURITY AGREEMENT (this "Agreement"), dated as of June 9, 2017, is by and between BR CWS CANYON SPRINGS
OWNER, LLC, a Delaware limited liability company ("Borrower"), and FANNIE MAE, a corporation duly
organized under the Federal National Mortgage Association Charter Act, as amended, 12 U.S.C. §1716 et seq. and duly
organized and existing under the laws of the United States ("Lender").

 

RECITALS:

 

A.           Pursuant
to that certain Multifamily Loan and Security Agreement dated May 27, 2014, executed by and between BRE MF Canyon Springs LLC,
a Delaware limited liability company ("Original Borrower") and Wells Fargo Bank, National Association, a national
banking association ("Original Lender") (as amended, restated, replaced, supplemented or otherwise modified from
time to time, the "Loan Agreement"), Original Lender has agreed to make a loan to Original Borrower in the original
principal amount of $43,125,000.00 (the "Mortgage Loan"), as evidenced by, among other things, that certain Multifamily
Note dated May 27, 2014, executed by Original Borrower and made payable to Lender in the amount of the Mortgage Loan (as amended,
restated, replaced, supplemented or otherwise modified from time to time, the "Note").

 

B.           In
addition to the Loan Agreement, the Mortgage Loan and the Note are also secured by a certain Multifamily Mortgage, Deed of Trust
or Deed to Secure Debt (as amended, restated, replaced, supplemented or otherwise modified from time to time, the "Security
Instrument"), dated as of May 27, 2014, granting a lien on certain real property located in San Antonio (Bexar County),
Texas (the "Mortgaged Property").

 

C.           Borrower
is assuming the Mortgage Loan from Original Borrower.

 

D.           Lender
has required, and Borrower has agreed to acquire, maintain and pledge to Lender an interest rate cap (the "Interest Rate
Cap"), pursuant to one or more interest rate cap agreements, in order to provide additional support and collateral for
Borrower's obligations to Lender under the Loan Agreement and other Loan Documents (as defined in the Loan Agreement).

 

E.           To
the extent that the term of the initial Interest Rate Cap acquired by Borrower is less than the term of the Mortgage Loan, Borrower
is required to make monthly deposits with Lender for the acquisition of a subsequent Interest Rate Cap, such deposits to be held
in an escrow account by Lender pursuant to the terms of this Agreement.

 

F.           Borrower
and Lender are entering into this Agreement to (i) evidence Borrower's obligation to maintain an Interest Rate Cap for the remaining
term of the Mortgage Loan, (ii) evidence Borrower's obligation to make monthly deposits for the acquisition of a subsequent
Interest Rate Cap (if applicable), and (iii) provide further security for Borrower's obligations under the Loan Documents.

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page 1
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

NOW, THEREFORE, in
consideration of the above and the mutual promises contained in this Agreement and for other valuable consideration, including
Lender's making the Mortgage Loan to Borrower, the receipt and sufficiency of which are acknowledged, Borrower and Lender agree
as follows:

 

ARTICLE 1

DEFINITIONS; RULES OF CONSTRUCTION

 

Section 1.01        Recitals. 

 

The recitals set forth
above are incorporated herein by reference as if fully set forth in the body of this Agreement.

 

Section 1.02        Defined
Terms.

 

Capitalized terms used
and not specifically defined herein shall have the meanings given to such terms in the Loan Agreement. Unless otherwise defined
in this Agreement, terms used in this Agreement that are defined in the UCC shall have the meaning given those terms in the UCC.
The following terms in this Agreement shall have the following meanings:

 

"Collateral"
means the items listed in Section 4.0l(a) through Section 4.0l(k) of this Agreement.

 

"Collateral Liens" means
any lien, security interest, option or other charge or encumbrance.

 

"Counterparty"
means (a) an interest rate cap provider acceptable to Lender under the Interest Rate Cap Documents, or (b) a counterparty
on any list of acceptable counterparties for interest rate caps of the type required by this Agreement maintained by Lender, as
any such list may be modified by Lender from time to time.

 

"Event of Default" has
the meaning set forth in Section 7.01 of this Agreement.

 

"Initial Interest Rate Cap"
means the initial Interest Rate Cap purchased by Borrower with respect to the Mortgage Loan.

 

"Initial
Interest Rate Cap Term" means the period in which the Initial Interest Rate Cap shall be in effect, beginning on
or prior to the Effective Date and terminating not earlier than the first to occur of (a) the last day of the forty-eighth (48th)
full calendar month thereafter and (b) the Maturity Date.

 

"Interest Rate Cap" has
the meaning set forth in Recital C of this Agreement.

 

"Interest Rate Cap Documents"
means the rate cap agreements and related documentation in form and content acceptable to Lender.

 

"Interest Rate Cap Reserve Escrow"
means all Monthly Deposits and all other funds held in the Interest Rate Cap Reserve Escrow Account.

 

"Interest Rate Cap Reserve Escrow
Account" means an interest-bearing account which meets the standards for custodial accounts as required by Lender from
time to time.

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page 2
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

"Monthly
Deposit" means, with respect to the first six (6) months after the purchase of the Initial Interest Rate Cap, an
amount equal to one-forty-eighth (1148th) of one hundred percent (100%) of the cost, as reasonably estimated by Lender, to obtain
any required Subsequent Interest Rate Cap. Thereafter, the Monthly Deposit shall mean the amount determined by Lender in accordance
with Section 3.02 of this Agreement.

 

"Payment
Date" means the date by which the Counterparty requires payment of the Purchase Price.

 

"Payments"
means any and all moneys payable to Borrower, from time to time, pursuant to the Interest Rate Cap Documents by the
Counterparty, whether credited to the Interest Rate Cap Reserve Escrow Account, held in the course of payment or collection by
Lender, or otherwise.

 

"Purchase Price" means
the purchase price of the Subsequent Interest Rate Cap.

 

"Required Strike Rate" means
four percent (4.00%).

 

"Subsequent
Interest Rate Cap" means a subsequent Interest Rate Cap required to be purchased and pledged to Lender pursuant
to the terms of this Agreement.

 

"Subsequent
Interest Rate Cap Term" means the period in which the Subsequent Interest Rate Cap shall be in effect, beginning
on or prior to the termination date of the Interest Rate Cap then in effect and terminating not earlier than the first to occur
of (a) the last day of the forty-eighth (48th) full calendar month thereafter and (b) the
Maturity Date.

 

"UCC"
means the Uniform Commercial Code as adopted in the state in which Borrower is organized.

 

ARTICLE 2

TERMS OF INTEREST RATE CAP

 

Section 2.01        General
Terms.

 

To protect against
fluctuations in interest rates during the term of the Mortgage Loan, Borrower shall make arrangements for an Interest Rate Cap
to be in place and maintained at all times with respect to the Mortgage Loan in accordance with the following terms and conditions:

 

(a)          Term.

 

Except as hereinafter
permitted, the Initial Interest Rate Cap shall be in effect for the Initial Interest Rate Cap Term. If
the Initial Interest Rate Cap Term is less than the term of the Mortgage Loan, a Subsequent Interest Rate Cap shall be required.
Any Subsequent Interest Rate Cap shall be in effect for the Subsequent Interest Rate Cap Term.

 

(b)          Notional
Amount.

 

The notional amount
of the Initial Interest Rate Cap shall be equal to the original principal balance of the Mortgage Loan for the entire term of the
Initial Interest Rate Cap. The notional amount of any Subsequent Interest Rate Cap shall be equal to the outstanding principal
balance of the Mortgage Loan at the time that any Subsequent Interest Rate Cap is to become effective. Unless otherwise agreed
by Lender, the notional amount of any Interest Rate Cap shall not amortize over its term.

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page 3
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

(c)          Strike
Rate.

 

Each Initial and any
Subsequent Interest Rate Cap shall have a strike rate equal to or less than the Required Strike Rate.

 

(d)          Interest
Rate Cap Documents and Counterparty.

 

All Interest Rate Caps
shall be evidenced, governed and secured on terms and conditions pursuant to Interest Rate Cap Documents between Borrower and the
Counterparty.

 

Section 2.02        Payments Made
under Interest Rate Cap.

 

The Interest Rate Cap
Documents shall require the Counterparty to make all payments due under the Interest Rate Cap directly to Lender for so long as
the Interest Rate Cap is subject to the pledge established hereunder. Such payments will be paid over to Borrower only if (a) there
is no Event of Default, and (b) Lender has received payment in full for all amounts due on the Mortgage Loan as required by the
Loan Documents.

 

Section 2.03        Rights and Remedies
under Interest Rate Cap Documents.

 

For so long as an Interest
Rate Cap is pledged as collateral for the Mortgage Loan pursuant to the terms of this Agreement, Borrower shall not exercise any
right or remedy under any Interest Rate Cap Documents without Lender's prior written consent and shall exercise its rights and
remedies under the Interest Rate Cap Documents as directed by Lender in writing. Rights and remedies under the Interest Rate Cap
Documents include, but are not limited to, any right to designate an "Early Termination Date" or otherwise terminate
the Interest Rate Cap due to the occurrence of a "Termination Event," an "Additional Termination Event" or
an "Event of Default." All capitalized terms appearing in this Section 2.03 in quotation marks are used as defined in
the Interest Rate Cap Documents.

 

Section 2.04        Termination of
Interest Rate Cap.

 

Borrower shall not
terminate, transfer or consent to any transfer of any existing Interest Rate Cap without Lender's prior written consent; provided,
however, that if, and at such time as any amounts due and owing on the Mortgage Loan as required by the Loan Documents are paid
in full or if the Mortgage Loan is converted to a fixed rate of interest, Borrower shall have the right to terminate the existing
Interest Rate Cap in accordance with Section 8.02 of this Agreement. If an Interest Rate Cap
unexpectedly and unavoidably terminates or terminates for any reason on a date other than its scheduled expiration date without
the prior written consent of Lender, Borrower shall, within ten (10) Business Days of such termination, obtain a new Interest Rate
Cap satisfying the requirements of this Agreement.

 

ARTICLE 3

INTEREST RATE CAP RESERVE ESCROW ACCOUNT

 

Section 3.01        Obligation to Maintain
Interest Rate Cap Reserve Escrow Account.

 

During any period in
which an Interest Rate Cap with an original term of less than the remaining term of the Mortgage Loan is in effect, Borrower is
required to make Monthly Deposits to be held in the Interest Rate Cap Reserve Escrow Account to provide a cash reserve for the
purchase of a Subsequent Interest Rate Cap. Borrower shall, with each monthly payment due on the Mortgage Loan, deposit with Lender
the Monthly Deposit into the Interest Rate Cap Reserve Escrow Account.

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page 4
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

Section 3.02        Adjustment of
Monthly Deposit.

 

At the end of each
six (6) month period following the date of this Agreement, Lender shall estimate the cost of the Subsequent Interest Rate Cap and
shall adjust the Monthly Deposit based on the then current estimate for purchase of the Subsequent Interest Rate Cap. No adjustment
shall be made to the Monthly Deposit if Lender determines that the current estimate of the cost of the Subsequent Interest Rate
Cap remains the same or has decreased. Borrower shall continue to make the Monthly Deposits at the level required for the most
recent six (6) month period until Lender delivers written notice of a change in the amount of the Monthly Deposit.

 

Section 3.03        Terms of Interest
Rate Cap Reserve Escrow Account.

 

Lender shall deposit
the Monthly Deposits into the Interest Rate Cap Reserve Escrow Account. Lender or a designated representative of Lender shall have
the sole right to make withdrawals from the Interest Rate Cap Reserve Escrow Account. All interest earned on or profits realized
from amounts on deposit in the Interest Rate Cap Reserve Escrow Account shall be added to and become part of the Interest Rate
Cap Reserve Escrow. Lender shall not be responsible for any losses resulting from the investment of the Interest Rate Cap Reserve
Escrow or for obtaining any specific level or percentage of earnings on such investment. If applicable
law requires and provided no Event of Default exists under any of the Loan Documents, Lender shall pay to Borrower the interest
earned on the Interest Rate Cap Reserve Escrow on January 1 of each year. Otherwise, all interest earnings shall remain in the
Interest Rate Cap Reserve Escrow Account.

 

Section 3.04        Lender's Duties
Regarding the Interest Rate Cap Reserve Escrow Account.

 

Lender acknowledges
that:

 

(a)          it
will hold the Monthly Deposits and any investments in the Interest Rate Cap Reserve Escrow pursuant to the terms of this Agreement;

 

(b)          it
will credit all Monthly Deposits and any investments in the Interest Rate Cap Reserve Escrow on its own books and records to the
Interest Rate Cap Reserve Escrow Account, subject to the security interests created in this Agreement;

 

(c)          it
will hold all Monthly Deposits for the credit of the Interest Rate Cap Reserve Escrow, subject to the security interest and the
terms of this Agreement; and

 

(d)          it
will keep accurate records regarding amounts on deposit in the Interest Rate Cap Reserve Escrow Account and any interest earned
on or profits realized from amounts on deposit in the Interest Rate Cap Reserve Escrow Account.

 

Section 3.05        Irrevocable Deposits
in Escrow.

 

All deposits into the
Interest Rate Cap Reserve Escrow Account constitute irrevocable payments in escrow solely for use as described in this Agreement.
Borrower shall not have any control over the use of, or any right to withdraw, any moneys from the Interest Rate Cap Reserve Escrow
Account or any proceeds thereof except as provided in Section 3.07 of this Agreement, nor shall Borrower have any right, title
or interest in the Interest Rate Cap Reserve Escrow Account, other than Borrower's right to receive interest pursuant to Section
3.03 above.

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page 5
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

Section 3.06        Request for Disbursement.

 

At least ten (10) Business
Days prior to the date on which the Initial Interest Rate Cap is to expire, Borrower shall be required to purchase the Subsequent
Interest Rate Cap on terms and conditions satisfactory to Lender. In such event, and provided that funds are available in the Interest
Rate Cap Reserve Escrow Account, Borrower shall request a withdrawal from the Interest Rate Cap Reserve Escrow Account to acquire
the Subsequent Interest Rate Cap. Each written request for disbursement from the Interest Rate Cap Reserve Escrow Account shall
specify (a) the Purchase Price, (b) the name, address, contact name, telephone number and wiring instructions of the Counterparty,
(c) the Payment Date, and (d) such other information as Lender may require.

 

Section 3.07        Disbursement
for Purchase of Subsequent Interest Rate Cap.

 

Upon receipt by Lender
of a written request from Borrower in accordance with Section 3.6  above, and the determination by Lender that all applicable
terms and conditions of this Agreement have been satisfied, Lender shall disburse to the Counterparty of the Subsequent Interest
Rate Cap, an amount from the Interest Rate Cap Reserve Escrow Account equal to the lesser of (a) the Purchase Price, or (b) the
amount then on deposit in the Interest Rate Cap Reserve Escrow Account. In no event shall Lender be obligated to disburse funds
from the Interest Rate Cap Reserve Escrow Account if an Event of Default has occurred and is continuing.

 

Section 3.08        Remaining
Balance After Payment of Purchase Price.

 

Provided that Borrower
has no obligation to purchase additional Subsequent Interest Rate Caps under the terms of this Agreement, any balance remaining
in the Interest Rate Cap Reserve Escrow Account after payment of the Purchase Price shall be delivered to Borrower on or promptly
following the Payment Date. Borrower's obligation to make Monthly Deposits hereunder shall cease and terminate upon the earlier
of (a) purchase of a Subsequent Interest Rate Cap with a term of at least the entire remaining term of the Mortgage Loan, (b) conversion
of the Mortgage Loan to a fixed rate of interest, and (c) payment in full of the Mortgage Loan.

 

ARTICLE 4

SECURITY INTEREST IN COLLATERAL; FURTHER
ASSURANCES

 

Section
4.01        Security Interest in Collateral.

 

As security for the
Indebtedness, Borrower hereby grants to Lender, its successors and assigns, a lien and continuing security interest in all of Borrower's
right, title and interest in and to the following Collateral whether now owned or hereafter acquired:

 

(a)          the
Interest Rate Cap and the Interest Rate Cap Documents representing the Initial Interest Rate Cap and any Subsequent Interest Rate
Cap;

 

(b)          any
and all Payments;

 

(c)          any
residual right, title or interest Borrower may have in the Interest Rate Cap Reserve Escrow Account (to the extent required by
this Agreement);

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page 6
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

(d)          all
Monthly Deposits, whether credited to the Interest Rate Cap Reserve Escrow Account, held in the course of payment or collection
by Lender, or otherwise;

 

(e)          all
interest earned and profits realized on funds in the Interest Rate Cap Reserve Escrow Account;

 

(f)          all
rights, liens and security interests or guarantees now existing or hereafter granted by the Counterparty or any other person to
secure or guaranty payment of the Payments due pursuant to the Interest Rate Cap Documents;

 

(g)          all
cash, funds, investments, securities, accounts, general intangibles and all other property held from time to time in the Interest
Rate Cap Reserve Escrow Account and all certificates and instruments representing or evidencing any of the foregoing;

 

(h)          all
rights of Borrower under any of the foregoing, including all rights of Borrower to the Payments, contract rights and general intangibles
now existing or hereafter arising with respect to any or all of the foregoing;

 

(i)          all
documents, writings, books, files, records and other documents arising from or relating to any of the foregoing, whether now existing
or hereafter arising;

 

G)        all
extensions, renewals and replacements of the foregoing; and

 

(k) all cash and non-cash
proceeds and products of any of the foregoing, including, without limitation, interest, dividends, cash, instruments, proceeds
of any insurance, and other property from time to time received, receivable or otherwise distributed or distributable in respect
of or in exchange for any or all of the foregoing.

 

TO HAVE AND TO HOLD
the Collateral, together with all right, title, interest, powers, privileges and preferences pertaining or incidental thereto,
unto Lender, its successors and assigns, forever, subject, however, to the terms, covenants and conditions herein set forth.
Borrower hereby authorizes Lender to file financing statements, continuation statements and financing statement amendments in such
form as Lender may require to perfect or continue the perfection of this security interest in the Collateral and Borrower agrees,
if Lender so requests, to execute and deliver to Lender such financing statements, continuation statements and amendments. Borrower
shall pay all filing costs and all costs and expenses of any record searches for financing statements that Lender may require.

 

Section 4.02        Further Assurances.

 

At any time and from
time to time, at the expense of Borrower, Borrower shall promptly give, execute, deliver, file and record any notice, statement,
instrument, document, agreement or other paper and do such other acts and things that may be necessary, or that Lender may request,
in order to perfect, continue and protect any security interest granted or purported to be granted by this Agreement or to enable
Lender to exercise and enforce its rights and remedies under this Agreement.

 

Section 4.03        Competing Security
Arrangements.

 

Borrower shall not
execute, file, permit to be filed or suffer to remain on file in any jurisdiction any security agreement, financing statement or
like agreement or instrument with respect to the Collateral, or any part of the Collateral, naming anyone other than Lender as
the secured party. Borrower shall not sell, exchange or transfer or otherwise dispose of any of the Collateral, or any interest
in the Collateral, other than any security interest or other lien in favor of Lender.

 

    
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Section 4.04        No Change.

 

Borrower will not voluntarily
or involuntarily change its principal place of business, chief executive office, name or identity, without at least thirty (30)
days prior written notice to Lender, except in the event of a change in principal place of business or chief executive office necessitated
by fire, flood or other calamity, in which case such notice shall be provided as soon as practicable.

 

Section 4.05        Defense of Collateral.

 

Borrower will defend
the Collateral against all claims and demands of all persons at any time claiming the same or any interest in the Collateral.

 

ARTICLE 5

DELIVERY OF INTEREST RATE CAP DOCUMENTS

 

Section 5.01        Acquisition
of Interest Rate Cap; Delivery of Interest Rate Cap Documents.

 

Borrower has, on or
before the date of this Agreement, executed and delivered the Interest Rate Cap Documents to the Counterparty and has delivered
to Lender fully executed originals of such Interest Rate Cap Documents. True, complete and correct copies of the Interest Rate
Cap Documents and all amendments thereto, fully executed by all parties, are attached as Exhibit A hereto. Borrower hereby
represents and warrants to Lender that there is no additional security for or any other arrangements or agreements relating to
the Interest Rate Cap Documents and that the Counterparty has consented to Borrower's pledge of its rights and interests in the
Interest Rate Cap to Lender as security for the Mortgage Loan.

 

Section 5.02        Obligations Remain
Absolute.

 

Nothing contained herein
shall relieve Borrower of its primary obligation to pay all amounts due in respect of its obligations on the Mortgage Loan as required
by the Loan Documents.

 

Section 5.03        Subsequent Interest
Rate Caps.

 

Borrower agrees to
execute and deliver to Lender a Supplemental Agreement substantially in the form of the attached Exhibit B attached hereto
on each occasion on which Borrower acquires a Subsequent Interest Rate Cap. Borrower shall, on or before the date any Subsequent
Interest Rate Cap is to become Collateral under this Agreement, execute and deliver the Interest Rate Cap Documents representing
such Subsequent Interest Rate Cap to the Counterparty and deliver to Lender fully executed originals of such Interest Rate Cap
Documents to be held under this Agreement as a part of the Collateral.

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page 8
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

  

ARTICLE 6

REPRESENTATIONS AND WARRANTIES

 

Section 6.01        Representations
and Warranties of Borrower.

 

Borrower represents
and warrants to Lender that:

 

(a)          Borrower
has paid to the Counterparty the entire cost of the Initial Interest Rate

Cap;

 

(b)          the
individuals who are signing and delivering this Agreement on behalf of Borrower have been duly authorized to do so in accordance
with the documents and instruments pursuant to which Borrower is organized and which govern the conduct of Borrower's business;

 

(c)          no
consent of any other person or entity and no authorization, approval, or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required or will be required (1) for the pledge by Borrower of the Collateral pursuant
to this Agreement or any Supplemental Agreement or for the execution, delivery or performance of this Agreement or any Supplemental
Agreement by Borrower (other than the consent of the Counterparty where such consent has been obtained), (2) for the perfection
or maintenance of the security interest created hereby or by any Supplemental Agreement (including the first priority nature of
such security interest) other than the filing of any financing statement as may be required by the UCC, or (3) for the execution,
delivery or performance of this Agreement by Borrower;

 

(d)          there
are no conditions precedent to the effectiveness of this Agreement that have not been satisfied or waived;

 

(e)          neither
the execution nor delivery of this Agreement or any Supplemental Agreement nor the performance by Borrower of its obligations under
this Agreement or any Supplemental Agreement, nor the consummation of the transactions contemplated by this Agreement or any Supplemental
Agreement, will (1) conflict with any provision of the organizational documents of Borrower, (2) conflict with, result in a breach
of, or constitute a default (or an event which would, with the passage of time or the giving of notice or both, constitute a default)
under, or give rise to a right to terminate, amend, modify, abandon or accelerate, any contract, agreement, promissory note, lease,
indenture, instrument or license to which Borrower is a party or by which Borrower's assets or properties may be bound or affected,
(3) violate or conflict with any federal, state or local law, statute, ordinance, rule, regulation, order, judgment, decree
or arbitration award which is either applicable to, binding upon or enforceable against Borrower, (4) result in or require the
creation or imposition of any Collateral Liens upon or with respect to the Collateral, other than Collateral Liens in favor of
Lender, (5) violate any legally protected right of any Person or give to any Person a right or claim against Borrower, or (6) require
the consent, approval, order or authorization of, or the registration, declaration or filing (except to the extent that the filing
of financing statements may be applicable) with, any federal, state or local government entity;

 

(f)          Borrower
is and shall be the sole legal and beneficial owner of, and has and will have good and marketable title to (and has full right
and authority to pledge and assign), the Collateral, free and clear of all Collateral Liens (other than in favor of Lender), all
fiduciary obligations of any kind and any adverse claim of title thereto and the Collateral is not subject to any offset, right
of redemption, defense or counterclaim of a third party. There is no additional security for or any other arrangements or agreements
relating to the Interest Rate Cap Documents, except as may have been disclosed to Lender in writing;

 

    
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(g)          the
security interest of Lender in the Collateral is, or when it attaches shall be, a first priority and perfected security interest.
No financing statement covering the Collateral, or any part of the Collateral (other than any financing statement naming only Lender
as the secured party), is outstanding or is on file in any public office;

 

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

 

(i)          Borrower
has not commenced (within the meaning of any Insolvency Laws) a voluntary case, consented to the entry of an order for relief against
it in an involuntary case, or consented to the appointment of a receiver or custodian of it or for any part of its property, nor
has a court of competent jurisdiction entered an order or decree under any Insolvency Law that is for relief against it in an involuntary
case or appointed a receiver or custodian for Borrower or any part of its property.

 

ARTICLE 7

EVENTS OF DEFAULT; RIGHTS AND REMEDIES

 

Section 7.01        Event
of Default.

 

The occurrence of any
one or more of the following events shall constitute an "Event of Default" under this Agreement:

 

(a)          the
failure by Borrower to observe and perform any duty, obligation or covenant required to be observed or performed by this Agreement
or any Supplemental Agreement subject to any applicable notice and cure rights provided in this Agreement, any Supplemental Agreement,
or the Loan Agreement;

 

(b)          any
representation or warranty on the part of Borrower contained in this Agreement or repeated and reaffirmed in this Agreement or
any Supplemental Agreement proves to be false, inaccurate, or misleading in any material respect when made or deemed made; and

 

(c)          the
occurrence of an Event of Default under any Loan Document.

 

Section 7.02        Remedies on Default.

 

If any Event of Default under this Agreement
has occurred and is continuing:

 

(a)          designee;
At the direction of Lender, Borrower shall deliver all Collateral to Lender or its

 

(b)          Lender
may, without further notice, exercise all rights, privileges or options pertaining to the Collateral as if Lender were the absolute
owner of such Collateral, upon such terms and conditions as Lender may determine, all without liability except to account for property
actually received by Lender, and Lender shall have no duty to exercise any of those rights, privileges or options and shall not
be responsible for any failure to do so or delay in so doing; and

 

    
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(c)          Lender
may, subject to the terms of the Interest Rate Cap Documents, exercise in respect of the Collateral, in addition to other rights
and remedies provided for in this Agreement or otherwise available to it, all of the rights and remedies of a secured party under
the UCC and also may, without notice except as specified below, sell the Collateral at public or private sale, at any of the offices
of Lender or elsewhere, for cash, on credit or for future delivery, and upon such other terms as may be commercially reasonable.
Borrower agrees that, to the extent notice of sale shall be required by applicable law, at least ten (10) days prior notice to
Borrower of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable
notification. Lender shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. Lender
may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so adjourned. In case of any sale by Lender of any of the
Collateral, the Collateral so sold may be retained by Lender until the selling price is paid by the purchaser, but Lender shall
not incur any liability in case of failure of the purchaser to take up and pay for the Collateral so sold. In case of any such
failure, such Collateral so sold may be again similarly sold.

 

The foregoing rights and remedies (1) shall
be cumulative and concurrent, (2) may be pursued separately, successively or concurrently against Borrower and any other party
obligated for the Indebtedness, or against the Collateral, or any other security for the Indebtedness, at the sole discretion of
Lender, (3) may be exercised as often as occasion therefor shall arise, it being agreed by Borrower that the exercise or failure
to exercise any of same shall not in any event be construed as a waiver or release thereof or of any other right, remedy or recourse,
and (4) are intended to be and shall be non-exclusive. Nothing in this Agreement shall require or be construed to require Lender
to accept tender of performance of any of Borrower's obligations under this Agreement after the expiration of any time period set
forth in this Agreement for the performance of such obligations and the expiration of any applicable cure periods, if any.

 

Section 7.03        Application of
Proceeds.

 

Lender shall apply
the Collateral or the cash proceeds actually received from any sale or other disposition of the Collateral in its sole and absolute
discretion to the following, in any order:

 

(a)          to
reimburse Lender for any amounts due to it pursuant to Section 7.0l(a) of this Agreement including the expenses of preparing for
sale, selling and the like and to reasonable attorneys' fees and legal expenses incurred by Lender in connection therewith;

 

(b)          to
the repayment of all amounts then due and unpaid on the Indebtedness in such order of priority as Lender may determine; and

 

(c)          to
purchase any required Subsequent Interest Rate Cap that meets the requirements of this Agreement or any of the other Loan Documents.

 

If the
proceeds of sale, collection or other realization of or upon the Collateral are insufficient to cover the costs and expenses of
such realization and the payment in full of the Indebtedness, Borrower shall remain liable for the deficiency, except to the extent
that Borrower's liability for payment of the Indebtedness is limited by the terms of the Loan Agreement.

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page 11
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

Section 7.04        No Additional
Waiver Implied by One Waiver.

 

If
any provision of this Agreement is breached by Borrower and thereafter waived by Lender in writing, such waiver shall be
limited to the particular breach so waived and shall not be deemed to waive any other breach under this Agreement.

 

Section 7.05        Lender Appointed
Attorney-in-Fact.

 

Borrower hereby appoints
Lender, through any duly authorized officer of Lender, as Borrower's attorney-in-fact, with full authority in the place and stead
of Borrower and in the name of Borrower or otherwise, from time to time in Lender's discretion during the continuance of an Event
of Default, to take any action and to execute any instrument which Lender may deem necessary or advisable to exercise the rights
and remedies granted in this Agreement, including, to receive, endorse and collect all instruments made payable to Borrower representing
any interest payment, dividend, or other distribution in respect of the Collateral or any part of the Collateral and to give full
discharge for the same. Borrower agrees that the power of attorney established pursuant to this Section 7.05 shall be deemed coupled
with an interest and shall be irrevocable.

 

Section 7.06        Nature of Lender's
Rights.

 

The right of Lender
to the Collateral held for its benefit under this Agreement shall not be subject to any right of redemption Borrower might otherwise
have and shall not be suspended, discontinued or reduced or terminated for any cause, including, without limiting the generality
of the foregoing, any event constituting force majeure or any acts or circumstances that may constitute commercial frustration
of purpose.

 

ARTICLE 8

 MISCELLANEOUS PROVISIONS

 

Section 8.01        Fees,
Costs and Expenses; Indemnification.

 

Borrower agrees to
reimburse Lender, on demand, for all out-of-pocket costs and expenses incurred by Lender in connection with the administration
and enforcement of this Agreement or any Supplemental Agreement and agrees to indemnify and hold harmless Lender from and against
any and all losses, costs, claims, damages, penalties, causes of action, suits, judgments, liabilities and expenses (including,
without limitation, reasonable attorneys' fees and expenses) incurred by Lender under this Agreement or any Supplemental Agreement
or in connection with this Agreement or any Supplemental Agreement, unless such liability shall be due to willful misconduct or
gross negligence on the part of Lender or its agents or employees. If
Borrower fails to do any act or thing which it has covenanted to do under this Agreement or any Supplemental Agreement or
any representation or warranty on the part of Borrower contained in this Agreement or any Supplemental Agreement or repeated and
reaffirmed in this Agreement or any Supplemental Agreement is breached, Lender may (but shall not be obligated to) do the same
or cause it to be done or remedy any such breach, and may expend its funds for such purpose. Any and all amounts so expended by
Lender shall be repayable to it by Borrower upon Lender's demand. The obligations of Borrower under this Section 8.01 shall survive
the termination of this Agreement or any Supplemental Agreement and the discharge of the other obligations of Borrower under this
Agreement or any Supplemental Agreement.

 

    
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	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

Section 8.02        Termination.

 

This Agreement and
each Supplemental Agreement and the assignments, pledges and security interests created or granted by this Agreement and each Supplemental
Agreement shall create a continuing security interest in the Collateral and shall terminate upon the earlier to occur of (a) payment
in full of all amounts due under the Loan Documents, or (b) the conversion of the Mortgage Loan to a fixed rate of interest pursuant
to the terms of the Conversion Agreement. Upon termination of this Agreement, Lender shall deliver to Borrower all Collateral and
documents then in the custody or possession of Lender and, if requested by Borrower, shall execute and deliver to Borrower for
recording or filing in each office in which any assignment or financing statement relative to the Collateral or the agreements
relating thereto or any part of the Collateral, shall have been filed or recorded, a termination statement or release under applicable
law (including, if relevant, any financing statement), releasing Lender's interest in the Collateral and such other documents and
instruments as Borrower may reasonably request, all without recourse to or any warranty whatsoever by Lender and at the cost and
expense of Borrower.

 

Section 8.03        No Deemed Waiver.

 

No failure on the part
of Lender or any of its agents to exercise, and no course of dealing with respect to, and no delay in exercising, any right, power
or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by Lender or any of its agents
of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power
or remedy. The remedies herein are cumulative and are not exclusive of any remedies provided by law.

 

Section 8.04        Non-Recourse.

 

Article 3 (Personal
Liability) of the Loan Agreement is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

Section 8.05        Governing Law;
Consent to Jurisdiction and Venue.

 

Section 15.01 (Governing
Law; Consent to Jurisdiction and Venue) of the Loan Agreement is hereby incorporated herein as if fully set forth in the body of
this Agreement.

 

Section 8.06        Notices.

 

Section 15.02 (Notice)
of the Loan Agreement is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

Section 8.07        Successors and
Assigns Bound; Sale of Mortgage Loan.

 

Section 15.03 (Successors
and Assigns Bound; Sale of Mortgage Loan) of the Loan Agreement is hereby incorporated herein as if fully set forth in the body
of this Agreement.

 

Section 8.08        Counterparts.

 

Section 15.04 (Counterparts)
of the Loan Agreement is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

    
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Section 8.09        Severability;
Entire Agreement; Amendments.

 

Section 15.07 (Severability;
Entire Agreement; Amendments) of the Loan Agreement is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

Section 8.10        Construction.

 

Section 15.08 (Construction)
of the Loan Agreement is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

Section 8.11        WAIVER OF TRIAL
BY JURY.

 

Section 15.18 (WAIVER
OF TRIAL BY JURY) of the Loan Agreement is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

[Remainder of Page Intentionally Blank]

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page 14
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IN WITNESS WHEREOF,
the parties have signed and delivered this Agreement under seal (where applicable) or have caused this Agreement to be signed and
delivered under seal (where applicable) by their duly authorized representative. Where applicable law so provides, the parties
intend that this Agreement shall be deemed to be signed and delivered as a sealed instrument.

 

	 	BORROWER:
	 	 
	 	BR CWS CANYON SPRINGS OWNER, LLC, a
	 	Delaware limited liability company

 

	 	By:	 BR CWS 2017 Portfolio JV, LLC, a Delaware limited liability company, its sole member

 

	 	By:	BR CWS Portfolio Member, LLC, a 
	 	 	Delaware limited liability company, its manager

 

	 	By:	/s/ Jordan B Ruddy
	 	 	Jordan B Ruddy
	 	 	Authorized Signatory

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page S-1
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

	 	LENDER: 
	 	 
	 	FANNIE MAE

 

	 	By:	Wells Fargo Bank, a national banking association, its Attorney-in-Fact

 

	 	By:	/s/ Christian Adrian
	 	 	Christian Adrian
	 	 	Managing Director

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page S-2
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

EXHIBIT A

TO

INTEREST RATE CAP RESERVE AND SECURITY
AGREEMENT

 

Interest Rate Cap Documents

 

See Attached

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page A-1
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

EXHIBITB

TO

INTEREST RATE CAP RESERVE AND SECURITY
AGREEMENT

 

SUPPLEMENTAL INTEREST RATE CAP RESERVE

AND SECURITY AGREEMENT

 

This SUPPLEMENTAL INTEREST RATE CAP RESERVE AND SECURITY AGREEMENT
("Supplemental Agreement"), dated as of _____, is made by BR CWS CANYON SPRINGS OWNER, LLC, a Delaware
limited liability company, together with its permitted successors and assigns ("Borrower"), for the benefit of
FANNIE MAE, a corporation duly organized under the Federal National Mortgage Association Charter Act, as amended, 12 U.S.C.
§1716 et seq. and duly organized and existing under the laws of the United States (together with its successors and assigns,
"Fannie Mae").

 

This Supplemental Agreement
supplements the Interest Rate Cap Reserve and Security Agreement dated as of ____________, by and between Borrower and WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association (the "Original Lender") (the "Agreement").

 

RECITALS:

 

A.           Borrower
and Original Lender entered into the Agreement pursuant to which Borrower is required to acquire and maintain or replace, as appropriate,
an Interest Rate Cap (as defined in the Agreement) at all times during the term of the Mortgage Loan (as defined in the Agreement).
Each Interest Rate Cap will be represented by one or more Interest Rate Cap Documents (as defined in the Agreement).

 

B.           Original
Lender assigned its interest in the Mortgage Loan to Fannie Mae and Fannie Mae is now the holder of the Note (as defined in the
Agreement) and the mortgagee or beneficiary under the Security Instrument (as defined in the Loan Agreement) and all other Loan
Documents (as defined in the Loan Agreement).

 

C.           Borrower
is entering into a Subsequent Interest Rate Cap (as defined in the Agreement).

 

D.           As
security for Borrower's obligations under the Loan Documents, Borrower is entering into this Supplemental Agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants and undertakings set forth in this Supplemental Agreement and other good and valuable consideration,
the receipt and sufficiency of which are acknowledged by Borrower, the parties agree as follows:

 

Section 1.            Capitalized Terms.

 

All capitalized terms
used in this Supplemental Agreement have the meanings given to those terms in the Agreement or elsewhere in this Supplemental Agreement
unless the context or use clearly indicates a different meaning.

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page B-1
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

Section 2.             Grant of Security
Interest.

 

As security for the
due, punctual, full and exact payment, performance or observance by Borrower of all obligations owing to Lender from time to time
under the Loan Documents, whether at stated maturity, by acceleration or otherwise, whether now outstanding or hereafter arising,
Borrower confirms and grants to Fannie Mae a continuing security interest in and to the Subsequent Interest Rate Cap described
in the attached Interest Rate Cap Documents and all such Interest Rate Cap Documents, whether now owned or hereafter acquired.

 

Section 3.             Acquisition of Interest
Rate Cap; Delivery of Interest Rate Cap Documents.

 

Borrower has, on or
before the date of this Supplemental Agreement, executed and delivered the Interest Rate Cap Documents representing the Subsequent
Interest Rate Cap to the Counterparty and has delivered to Fannie Mae fully executed originals of such Interest Rate Cap Documents
to be held under the Agreement as a part of the Collateral. The documents attached to this Supplemental Agreement as Attachment
I are true, complete and correct copies of the Interest Rate Cap Documents and all amendments thereto, representing the Subsequent
Interest Rate Cap, fully executed by all parties. There is no and shall be no additional security for or any other arrangements
or agreements relating to the Interest Rate Cap or the Interest Rate Cap Documents.

 

Section 4.            Representations and
Warranties.

 

As of the date of this
Supplemental Agreement, Borrower repeats and confirms all representations and warranties made by Borrower in the Agreement.

 

Section 5.            Agreement Confirmed.

 

Except as supplemented
by this Supplemental Agreement, Borrower confirms the original Agreement as previously supplemented and amended from time to time.

 

Section 6.            Obligations Remain
Absolute.

 

Nothing contained in
this Supplemental Agreement shall relieve Borrower of its primary obligation to pay all amounts due in respect of its obligations
under the Loan Documents.

 

Section 7.            Miscellaneous
Provisions.

 

The provisions of Article
8 of the Agreement are hereby incorporated into this Supplemental Agreement by this reference to the fullest extent as if the text
of such provisions were set forth in their entirety herein.

 

[Remainder of Page Intentionally Blank]

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page B-2
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

IN WITNESS WHEREOF,
Borrower has signed and delivered this Agreement under seal (where applicable) or has caused this Agreement to be signed and delivered
under seal (where applicable) by its duly authorized representative. Where applicable law so provides, Borrower intends that this
Agreement shall be deemed to be signed and delivered as a sealed instrument

 

	 	BORROWER
	 	 
	 	 

 

	 	By:	 	(SEAL)
	 	Name:	 	 
	 	Title:	 	 

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page B-3
	Fannie Mae	06-16	© 2016 Fannie Mae

    

    

 

ATTACHMENT I

TO

INTEREST RATE CAP RESERVE AND SECURITY AGREEMENT

 

Interest Rate Cap Documents for Subsequent
Interest Rate Cap

 

[TO BE SUPPLIED]

 

    
	Interest Rate Cap Reserve and Security Agreement	Form 6442	Page I-1
	Fannie Mae	06-16	© 2016 Fannie Mae

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