Document:

Exhibit 10.213

 

ARIUM Grande Lakes (f/k/a Venue Apartments)

 

INTEREST RATE CAP RESERVE AND SECURITY
AGREEMENT

 

This INTEREST RATE CAP RESERVE AND
SECURITY AGREEMENT (this "Agreement"), dated as of November 4, 2014, is by and between BR CARROLL ARIUM GRANDE LAKES
OWNER, LLC, a Delaware limited liability company ("Borrower"), and WALKER & DUNLOP, LLC, a Delaware
limited liability company ("Lender").

 

RECITALS:

 

A.           Pursuant
to that certain Multifamily Loan and Security Agreement dated as of the date hereof, executed by and between Borrower and Lender
(as amended, restated, replaced, supplemented or otherwise modified from time to time, the "Loan Agreement"),
Lender has agreed to make a loan to Borrower in the original principal amount of Twenty-Nine Million Four Hundred Forty-Four Thousand
and 00/100 Dollars ($29,444,000.00) (the "Mortgage Loan"), as evidenced by, among other things, that certain Consolidated,
Amended and Restated Multifamily Note dated as of the date hereof, executed by 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 Consolidated, Amended and Restated
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 even date herewith, granting a lien on certain real
property located in Orlando (Orange County), Florida (the "Mortgaged Property").

 

C.           Lender
has required, and Borrower has agreed to acquire, maintain and pledge to Lender hereunder 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.

 

D.           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.

 

E.           To
(i) evidence Borrower's obligations to maintain an Interest Rate Cap for the entire term of the Mortgage Loan, (ii) 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, Borrower and Lender are entering into this Agreement.

 

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:

 

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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 4.0 l (a) through Section 4.0 l (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.

 

"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 (1/48) 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.

 

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"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 six and thirty-six hundredths percent
(6.36%).

 

"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.

 

(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.

 

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(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.

 

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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.

 

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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 3.06 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.

 

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);

 

(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;

 

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(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;

 

(j)          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.

 

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;

 

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

 

(d)          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;

 

(e)          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;

 

(f)          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;

 

(g)         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

 

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(h)         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;

 

(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, misleading or incorrect when made or deemed made;

 

(c)         the
occurrence of an event which would, with the passage of time or the giving of notice or both, constitute an Event of Default under
any Loan Document; and

 

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

 

(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

 

(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,

 

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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 7.02 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.

 

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

 

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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.

 

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.

 

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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.

 

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]

 

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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 CARROLL ARIUM GRANDE LAKES OWNER, LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ Jordan Ruddy
	 	 	Jordan Ruddy 
	 	 	Authorized Signatory 

 

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	 	LENDER:
	 	 
	 	WALKER & DUNLOP, LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ Jamie Petitt
	 	 	Jamie Petitt
	 	 	Closing Office 

 

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EXHIBIT A

TO

INTEREST RATE CAP RESERVE AND SECURITY AGREEMENT

 

Interest Rate Cap 

Documents

 

See Attached

 

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EXHIBIT B

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 [NAME OF BORROWER], a [DESCRIPTION OF BORROWER], 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
_________________ (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 at all times during the term of the Mortgage Loan. Each Interest Rate Cap will
be represented by one or more Interest Rate Cap Documents.

 

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

 

C.          Borrower
is entering into a Subsequent Interest Rate Cap (as such term is 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.

 

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

 

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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]

 

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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:	 	 

 

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ATTACHMENT I

TO

INTEREST RATE CAP RESERVE AND SECURITY AGREEMENT

 

Interest Rate Cap Documents for Subsequent Interest
Rate Cap

 

[TO BE SUPPLIED]

 

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© 2013 Fannie MaeExhibit 10.214

 

ARIUM Grande Lakes (f/k/a Venue Apartments)

 

ENVIRONMENTAL INDEMNITY AGREEMENT

 

This ENVIRONMENTAL
INDEMNITY AGREEMENT (this "Agreement"), dated as of November 4, 2014, is executed by BR CARROLL ARIUM GRANDE
LAKES OWNER, LLC, a Delaware limited liability company ("Borrower"), to and for the benefit of WALKER &
DUNLOP, LLC, a Delaware limited liability company ("Lender").

 

RECITALS:

 

A.           Borrower
is the owner of the real property more particularly described on Exhibit A attached hereto and made a part hereof (the "Mortgaged
Property").

 

B.           Pursuant
to that certain Multifamily Loan and Security Agreement dated as of the date hereof, by and between Borrower and Lender (as amended,
restated, replaced, supplemented or otherwise modified from time to time, the "Loan Agreement"), Lender is making
a loan to Borrower in the original principal amount of Twenty-Nine Million Four Hundred Forty-Four Thousand and 00/ l00 Dollars
($29,444,000.00) (the "Mortgage Loan"), as evidenced by that certain Consolidated, Amended and Restated Multifamily
Note dated as of the date hereof, executed by Borrower and made payable to the order of Lender in the amount of the Mortgage Loan
(as amended, restated, replaced, supplemented or otherwise modified from time to time, the "Note").

 

C.           The
Mortgage Loan is evidenced by the Note issued pursuant to the Loan Agreement and is secured by, among other things, the Security
Instrument and the Loan Agreement.

 

D.           As
a condition to the making of the Mortgage Loan to Borrower, Lender requires Borrower to deliver this Agreement.

 

AGREEMENTS:

 

NOW, THEREFORE, for
and in consideration of the foregoing and for other good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged, Borrower agrees as follows:

 

1.           Recitals.

 

The recitals set forth above are true and correct and are hereby
incorporated by reference.

 

2.           Defined
Terms.

 

All capitalized terms
used but not defined in this Agreement shall have the meanings assigned to them in the Loan Agreement. As used in this Agreement,
the following terms shall have the following meanings:

 

"Environmental Inspections"
means environmental inspections, reports, tests, investigations, studies, audits, reviews or other analyses (including those related
to Significant Mold) with respect to the Mortgaged Property.

 

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"Environmental
Laws" means (a) all present and future federal, state and local laws, ordinances, regulations, standards, rules, policies
and other governmental requirements, administrative rulings, court judgments and decrees, and all amendments thereto, relating
to pollution or protection of human health, wildlife, wetlands, natural resources or the environment (including ambient air, surface
water, ground water, land surface or subsurface strata) including such laws governing or regulating the use, generation, storage,
removal, remediation, recovery, treatment, handling, transport, disposal, control, release, discharge of, or exposure to, Hazardous
Materials. Environmental Laws include the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section
9601, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. , the Toxic Substances
Control Act, 15 U.S.C. Section 2601, et seq., the Federal Water Pollution Control Act, 33 U.S.C. Section 1251, et seq.,
the Hazardous Materials Transportation Act, 49 U.S.C. Section 5101, et seq. , the Clean Air Act, 42 U.S.C. Section 7401,
et seq., the Safe Drinking Water Act, 42 U.S.C. Section 300f, et seq., the Occupational Safety and Health Act, 29
U.S.C. Chapter 15, et seq., the Oil Pollution Act of 1990, 33 U.S.C. Section 2701, et seq., the Federal Insecticide,
Fungicide and Rodenticide Act, 7 U.S.C. Section 136, et seq., and the River and Harbors Appropriation Act, 33 U.S.C. Section
403, et seq., and their state and local analogs, as any such statutes may be amended, restated, modified, or supplemented
from time to time, and (b) all voluntary cleanup programs and/or brownfields programs under federal, state or local law, as may
be amended, restated, modified, or supplemented from time to time.

 

"Environmental
Permit" means any permit, license, agreement (including any agreement or undertaking pursuant to a voluntary cleanup program
and/or a brownfields program) or other authorization issued under any Environmental Law with respect to any activities or businesses
conducted on or in relation to the Mortgaged Property.

 

"Hazardous
Materials" means any substance, chemical, material or waste now or in the future defined as a "hazardous substance,"
"hazardous material," "hazardous waste," "toxic substance," "toxic pollutant," "contaminant"
or "pollutant" within the meaning of or regulated or addressed under any Environmental Law. Without limiting the generality
of the foregoing, Hazardous Materials includes: Significant Mold; petroleum and petroleum products and compounds containing them
or derived from them, including natural gas, gasoline, diesel fuel, oil and other fuels and petroleum products or fractions thereof;
radon; carcinogenic materials; explosives; flammable materials; infectious materials; corrosive materials; mutagenic materials;
radioactive materials; polychlorinated biphenyls (PCBs) and compounds containing them; lead and lead based paint; asbestos or asbestos-containing
materials in any form that is or could become friable; underground or above-ground storage tanks, whether empty or containing any
substance; pipelines constructed for the purpose of transporting Hazardous Materials, whether empty or containing any substance;
any substance the presence of which on, under or about the Mortgaged Property is regulated or prohibited by any Governmental Authority;
any substance that is designated, classified or regulated pursuant to any Environmental Law; and any medical products or devices,
including those materials defined as "medical waste" or "biological waste" under relevant statutes or regulations
pertaining to any Environmental Law.

 

"Indemnitees" means, collectively:

 

(a)          Lender;

 

(b)          any
prior owner or holder of the Note;

 

(c)          the
Loan Servicer;

 

(d)          any
prior Loan Servicer;

 

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(e)          the
officers, directors, shareholders, partners, managers, members, employees and trustees of any of the foregoing; and

 

(f)          the
heirs, legal representatives, successors and assigns of each of the foregoing.

 

"O&M Plan" means a
written plan, document, or agreement containing ongoing operating, maintenance, or monitoring actions for the Mortgaged Property
or Improvements thereon.

 

"Prohibited Activities or Conditions" means
any of the following:

 

(a)          the
presence, use, generation, release, treatment, processing, storage, handling or disposal of any Hazardous Materials on, about
or under the Mortgaged Property or any other property owned, leased or otherwise controlled by Borrower, Guarantor, Key Principal
or any Borrower Affiliate that is adjacent to the Mortgaged Property or which impacts the Mortgaged Property; 

 

(b)          the
transportation of any Hazardous Materials to, from or across the Mortgaged Property;

 

(c)          any
Remedial Work at, about or under the Mortgaged Property that has not been fully conducted in accordance with an O&M Plan approved
in writing by Lender;

 

(d)          any
activity on the Mortgaged Property that requires an Environmental Permit or other written authorization under Environmental Laws
without Lender's prior written consent;

 

(e)          any
occurrence or condition on the Mortgaged Property or any other property owned, leased or otherwise controlled by Borrower, Guarantor,
Key Principal or any Borrower Affiliate that is adjacent to the Mortgaged Property, which occurrence or condition is or is expected
to be in violation of or noncompliance with Environmental Laws, or in violation of or noncompliance with the terms of any Environmental
Permit; or

 

(f)          any
activities on the Mortgaged Property that directly or indirectly result in other property (whether adjacent to the Mortgaged Property
or otherwise) being contaminated with Hazardous Materials or which causes such other property to be in violation of or noncompliance
with Environmental Laws.

 

Provided, however, excluded from this definition shall be the
safe and lawful use and storage of:

 

(1)         pre-packaged
supplies, cleaning materials and petroleum products in such quantities and types as are customarily used for residential purposes
and in the operation and maintenance of comparable multifamily properties so long as all of the foregoing are used, stored, handled,
transported and disposed of in compliance with Environmental Laws;

 

(2)         cleaning
materials, personal grooming items and other items sold in pre- packaged containers for consumer use in such quantities and types
as are customarily found in comparable multifamily properties and which are used by tenants and occupants of residential dwelling
units in the Mortgaged Property;

 

(3)         petroleum
products used in the operation and maintenance of motor vehicles from time to time located on the Mortgaged Property's parking
areas, in such quantities and types as are customarily used in the operation and maintenance of comparable multifamily properties
and so long as all of the foregoing are used, stored, handled, transported and disposed of in compliance with Environmental Laws;

 

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(4)         petroleum
products stored in above-ground and underground storage tanks, so long as the existence of such above-ground and underground storage
tanks has been previously disclosed by Borrower to Lender in writing and any such tank complies with and at all times continues
to comply with all requirements of Environmental Laws; and

 

(5)         natural
gas when transported and used for residential purposes in combustion appliances.

 

"Remedial Work"
means any investigation, site monitoring, containment, abatement, clean-up, removal, restoration or other remedial work in connection
with any Significant Mold, Environmental Laws, or order of or agreement with any Governmental Authority that has or acquires jurisdiction
over the Mortgaged Property, or the use, operation or improvement of the Mortgaged Property under any Environmental Law or as recommended
in writing by an environmental professional, certified industrial hygienist or person with similar qualifications with respect
to Significant Mold.

 

"Significant
Mold" means any mold, fungus, bacterial, viral, or microbial matter or pathogenic organisms at, in or about the Mortgaged
Property of a type or quantity that:

 

(a)          results
in, or should reasonably result in, Remedial Work or a significant risk to human health or the environment as determined by a written
analysis prepared by an environmental professional, certified industrial hygienist or person with similar qualifications reasonably
acceptable to Lender;

 

(b)          is
required or recommended to be addressed pursuant to Environmental Law, or written recommendation of an environmental professional,
certified industrial hygienist or person with similar qualifications; or

 

(c)          would
materially and negatively impact the value of the Mortgaged Property.

 

3.           Environmental
Representations and Warranties.

 

Borrower represents
and warrants to Lender that as of the Effective Date, except as previously disclosed by Borrower to Lender in writing or as set
forth in any Environmental Inspection performed with respect to the origination of the Mortgage Loan dated prior to the Effective
Date:

 

(a)          neither
Borrower nor any Borrower Affiliates are in possession of any Environmental Inspections (or any environmental inspections of any
other property owned, leased or otherwise controlled by Borrower or Borrower Affiliate that is adjacent to the Mortgaged Property)
that have not been provided to Lender, nor have any Environmental Inspections (or any environmental inspections of any other property
owned, leased or otherwise controlled by Borrower or Borrower Affiliate that is adjacent to the Mortgaged Property) been conducted
by or on behalf of Borrower that have not been provided to Lender;

 

(b)          Borrower
has not at any time engaged in, caused or permitted any Prohibited Activities or Conditions other than Prohibited Activities or
Conditions that are the subject of an O&M Plan approved in writing by Lender;

 

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(c)          Guarantor
has not at any time engaged in, caused or permitted any Prohibited Activities or Conditions with respect to the Mortgaged Property
or any adjacent property owned by Borrower, Guarantor, Key Principal or any Borrower Affiliate;

 

(d)          to
Borrower's knowledge, no Prohibited Activities or Conditions exist or have existed on the Mortgaged Property or on any adjacent
property owned, leased or otherwise controlled by Borrower, Guarantor, Key Principal or any Borrower Affiliate;

 

(e)          the
Mortgaged Property does not now contain any above-ground or underground storage tanks, and, to Borrower's knowledge, the Mortgaged
Property has not contained any above-ground or underground storage tanks in the past. If there is or was any storage tank located
on the Mortgaged Property which has been previously disclosed by Borrower to Lender in writing or in any Environmental Inspection,
that tank complies with, or has been removed in accordance with, all requirements of Environmental Laws;

 

(f)          Borrower
has complied with all Environmental Laws, including all requirements for notification regarding the presence of or any releases
of Hazardous Materials. Without limiting the generality of the foregoing, Borrower has obtained all Environmental Permits required
for the operation of the Mortgaged Property in accordance with Environmental Laws now in effect, Borrower has disclosed all such
Environmental Permits to Lender, and all such Environmental Permits are in full force and effect;

 

(g)         to
Borrower's knowledge, no event has occurred with respect to the Mortgaged Property that constitutes, or with the passing of time
or the giving of notice would constitute, noncompliance with the terms of any Environmental Permit;

 

(h)         there
are no actions, suits, claims, orders, proceedings pending or, to Borrower's knowledge, threatened that involve the Mortgaged Property
and allege, arise out of or relate to any Prohibited Activity or Condition; and

 

(i)          Borrower
has not received any written complaint, order, notice of violation or other communication from any Governmental Authority with
regard to air emissions, water discharges, noise emissions or Hazardous Materials, or any other environmental, health or safety
matters affecting the Mortgaged Property or any other property owned, leased or otherwise controlled by Borrower, Guarantor, Key
Principal or any Borrower Affiliate that is adjacent to the Mortgaged Property.

 

4.           Environmental
Covenants.

 

(a)         Borrower
shall not engage in, cause or permit any Prohibited Activities or Conditions other than Prohibited Activities or Conditions that
are the subject of an O&M Plan approved in writing by Lender so long as Borrower remains in full compliance therewith.

 

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

 

(c)         Borrower
shall not permit Guarantor to engage in, cause or permit any Prohibited Activities or Conditions with respect to any property that
is adjacent to the Mortgaged Property that is owned, leased or otherwise controlled by Borrower, Guarantor, Key Principal
or any Borrower Affiliate.

 

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(d)          Lender
shall have the right to require the establishment of, monitor and review an O&M Plan with respect to Hazardous Materials on
the Mortgaged Property or any other property owned, leased or otherwise controlled by Borrower, Guarantor, Key Principal or any
Borrower Affiliate that is adjacent to the Mortgaged Property. If an
O&M Plan has been established, Borrower and its employees shall comply in a timely manner with, and shall use all commercially
reasonable efforts to cause all agents and contractors of Borrower and any other persons present on the Mortgaged Property to comply
with, the O&M Plan. All costs of performance of Borrower's obligations under any O&M Plan shall be paid by Borrower, and
Lender's reasonable out-of-pocket costs incurred in connection with the monitoring and review of the O&M Plan and Borrower's
performance shall be paid by Borrower within ten ( 10) days of demand by Lender. Any such out-of-pocket costs of Lender which Borrower
fails to pay promptly shall become an additional part of the Indebtedness as provided in the Security Instrument.

 

(e)          Borrower
shall comply with all Environmental Laws applicable to the Mortgaged Property, including (1) all requirements for notification
regarding the presence of or any releases of Hazardous Materials, and (2) all requirements governing the presence or removal of
any above-ground or underground storage tank located on the Mortgaged Property. Without limiting the generality of the previous
sentence, Borrower shall obtain and maintain all Environmental Permits required by Environmental Laws, shall comply with all conditions
of such Environmental Permits and all such Environmental Permits shall be kept in full force and effect.

 

(f)          Borrower
shall promptly notify Lender in writing upon the occurrence of any of the following events:

 

(1)         Borrower's
discovery of any Prohibited Activity or Condition;

 

(2)         any
plans to conduct or requirements to conduct any Remedial Work;

 

(3)         Borrower's
receipt of notice of any action, suit, claim, proceeding, order, notice of violation or other communication from any property management
agents, Governmental Authority or other Person with regard to present or future alleged Prohibited Activities or Conditions or
any other environmental, health or safety matters affecting the Mortgaged Property or any other property owned, leased or otherwise
controlled by Borrower, Guarantor, Key Principal or any Borrower Affiliate that is adjacent to the Mortgaged Property; and

 

(4)         any
representation or warranty in Section 3 of this Agreement was untrue as of the date of this Agreement, or Borrower's breach of
any of its obligations under this Section 4.

 

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

 

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5.           Inspections.

 

Lender shall have the
right to cause to be undertaken and thereafter obtain any Environmental Inspections in connection with any Foreclosure Event, or
as a condition of Lender's consent to any Transfer, or required by Lender following a reasonable determination by Lender that Prohibited
Activities or Conditions may exist. Borrower shall pay within ten (10) days after written demand from Lender the reasonable costs
of any Environmental Inspections required by Lender in accordance with this Section 5. Any such costs incurred by Lender (including
the fees and out-of-pocket costs of attorneys and technical consultants whether incurred in connection with any judicial or administrative
process or otherwise) which Borrower fails to pay promptly after notice and request by Lender shall become an additional part of
the Indebtedness as provided in the Security Instrument. The results of all Environmental Inspections made by Lender shall at all
times remain the property of Lender and Lender shall have no obligation to disclose or otherwise make available to Borrower or
any other party such results or any other information obtained by Lender in connection with its Environmental Inspections; provided,
however, if Borrower reimbursed Lender for the cost of such Environmental Inspections, upon request by Borrower, Lender shall provide
a copy of such Environmental Inspections to Borrower. Lender hereby reserves the right, and Borrower hereby expressly authorizes
Lender, to make available to any party, including any prospective bidder at a foreclosure sale of the Mortgaged Property, the results
of any Environmental Inspections made by Lender or Borrower with respect to the Mortgaged Property. Borrower consents to Lender
notifying any party (either as part of a notice of sale or otherwise) of the results of any Environmental Inspections. Borrower
acknowledges that Lender cannot control or otherwise assure the truthfulness or accuracy of the results of any Environmental Inspections
and that the release of such results to prospective bidders at a foreclosure sale of the Mortgaged Property may have a material
and adverse effect upon the amount which a party may bid at such sale. Borrower agrees that Lender shall have no liability whatsoever
as a result of delivering the results of any Environmental Inspections to any third party, and Borrower hereby releases and forever
discharges Lender from any and all actions, suits, claims, proceedings, orders, damages or causes of action, arising out of, connected
with or incidental to conducting any such Environmental Inspections or providing the results of the same or delivering the same
to any person or entity.

 

6.           Remedial
Work.

 

If
any Remedial Work is contemplated, planned or undertaken at or about the Mortgaged Property or is (a) necessary to comply
with or required by any Environmental Law or order (that has not been stayed on appeal) of any Governmental Authority that has
or acquires jurisdiction over the Mortgaged Property or the use, operation or improvement of the Mortgaged Property under any Environmental
Law or order, or (b) required by Lender based on written recommendation from an environmental professional, certified industrial
hygienist or person with similar qualifications with respect to Significant Mold, or (c) is otherwise required by Lender as a consequence
of any Prohibited Activity or Condition or to prevent the occurrence of a Prohibited Activity or Condition, Borrower shall, at
its sole cost and expense and by the earlier of (1) thirty (30) days after notice from Lender demanding such action, or (2) the
applicable deadline required by Environmental Law or order, begin performing the Remedial Work, and thereafter diligently prosecute
it to completion, and shall in any event complete the work by the time required by applicable Environmental Law or order or relevant
Governmental Authority. If Borrower fails to begin on a timely basis
or diligently prosecute any required Remedial Work, Lender may, at its option, cause the Remedial Work to be completed, in which
case Borrower shall reimburse Lender on demand for the cost of doing so (including any related reasonable attorneys' fees). Any
reimbursement due from Borrower to Lender shall be due and payable within ten (10) days of demand by Lender.

 

7.           Cooperation.

 

Borrower, at its sole
cost and expense, shall cooperate with any inquiry by any Governmental Authority and any determination of Lender that Prohibited
Activities or Conditions may exist (as provided in Section 5), and shall timely comply with any governmental or judicial order
which arises from any alleged Prohibited Activity or Condition.

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8.            Indemnification.

 

(a)          Except
(1) in connection with any Prohibited Activity or Condition caused directly by Lender or its agents or employees after it takes
possession as mortgagee-in possession or otherwise, (2) as set forth in Section 8(g), or (3) to the extent that any such items
occur solely as a result of the gross negligence or willful misconduct of Lender or its affiliates, employees or representatives,
as determined by a court of competent jurisdiction pursuant to a final non-appealable court order, Borrower shall indemnify, hold
harmless and defend the Indemnitees for, from and against all actions, suits, claims, proceedings, orders, damages, penalties and
costs (whether initiated or sought by Governmental Authorities or private parties), including any reasonable fees and out-of-pocket
expenses of attorneys and expert witnesses, investigatory fees and remediation costs, whether incurred in connection with any judicial
or administrative process or otherwise, arising directly or indirectly from any of the following:

 

(A)         any
breach of any representation or warranty of Borrower in this Agreement;

 

(B)         any
failure by Borrower to perform any of its obligations under this Agreement;

 

(C)         any
Remedial Work;

 

(D)         the
existence or alleged existence of any Prohibited Activity or Condition, including any loss, cost or damage arising out of the existence
of any underground storage tank on the Mortgaged Property, whether known or unknown to any Borrower;

 

(E)         the
presence or alleged presence of Hazardous Materials on or under (i) the Mortgaged Property or (ii) any other property if the Hazardous
Materials were derived from, or alleged to have derived from, the Mortgaged Property; and

 

(F)         the
actual or alleged violation of any Environmental Law at the Mortgaged Property.

 

(b)          Borrower
shall be fully and personally liable for its obligations under this Agreement. To the extent permitted by law, Borrower's liability
shall not be limited by the amount of the Indebtedness, the repayment of the Indebtedness or otherwise (including as a result of
any limitation on personal liability set forth in the Loan Agreement or any other Loan Document).

 

(c)          Counsel
selected by Borrower to defend Indemnitees shall be subject to the approval of those Indemnitees, which approval shall not be unreasonably
withheld, conditioned or delayed. However, any Indemnitee may elect to defend any action, suit, claim, proceeding, or order at
Borrower's expense if such lndemnitee reasonably determines that there is a conflict between the interests of Borrower and such
Indemnitee, or if such Indemnitee reasonably determines that such election is necessary to protect lndemnitee's security under
the Security Instrument. Notwithstanding the foregoing, Lender may employ at its own cost and expense its own legal counsel and
consultants to prosecute, defend or negotiate any action, suit, claim, proceeding, or order. Further, with the prior written consent
of Borrower (which shall not be unreasonably withheld, delayed or conditioned), Lender may settle or compromise any action, suit,
claim, proceeding, or order. Borrower shall reimburse Lender within fifteen (15) days of its receipt of written demand from Lender
for all reasonable costs and expenses incurred by Lender which are required to be reimbursed under the terms of this provision,
including all costs of settlements entered into in good faith, and the reasonable fees and out-of-pocket
expenses of attorneys and consultants.

 

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(d)          Borrower
shall not, without the prior written consent of those lndemnitees who are named as parties to any action, suit, claim, proceeding,
or order, settle or compromise such action, suit, claim, proceeding, or order if the settlement may materially and adversely affect
any Indemnitee, as determined by Lender, or results in the entry of any judgment that does not include as an unconditional term
the delivery by the claimant or plaintiff to Lender of a written release of the applicable lndemnitees (such release satisfactory
in form and substance to Lender).

 

(e)          Borrower's
obligation to indemnify the lndemnitees shall not be limited or impaired by any of the following, or by any failure of Borrower
or any guarantor to receive notice of or consideration for any of the following:

 

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

 

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

 

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

 

(4)         the
maturity of the Indebtedness may be accelerated as provided in the Loan Documents;

 

(5)         any
or all payments due under the Loan Agreement or any other Loan Document may be reduced;

 

(6)         any
Loan Document may be modified or amended by Lender and Borrower in any respect, including an increase in the principal amount of
the Mortgage Loan;

 

(7)         any
amounts under the Loan Agreement or any other Loan Document may be released;

 

(8)         any
security for the Indebtedness may be modified, exchanged, released, surrendered or otherwise dealt with or additional security
may be pledged or mortgaged for the Indebtedness;

 

(9)         the
payment of the Indebtedness or any security for the Indebtedness, or both, may be subordinated to the right to payment or the security,
or both, of any other present or future creditor of Borrower;

 

(10)        any
payments made by Borrower to Lender may be applied to the Indebtedness in such priority as Lender may determine; and

 

(11)        any
other terms of the Loan Documents may be modified as required by Lender.

 

(f)          Borrower
shall, at its own cost and expense, do all of the following:

 

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(1)         pay
or satisfy any judgment or decree that may be entered against any Indemnitee in any legal or administrative proceeding incident
to any matters against which Indemnitees are entitled to be indemnified under this Agreement;

 

(2)         reimburse
Indemnitees for any expenses paid or incurred in connection with any matters against which Indemnitees are entitled to be indemnified
under this Agreement; and

 

(3)         reimburse
Indemnitees for any and all expenses, including reasonable fees and out-of-pocket expenses of attorneys and expert witnesses, paid
or incurred in connection with the enforcement by Indemnitees of their rights under this Agreement, or in monitoring and participating
in any legal or administrative proceeding.

 

(g)          The
provisions of this Agreement shall be in addition to any and all other obligations and liabilities that Borrower may have under
applicable law or under other Loan Documents, and each Indemnitee shall be entitled to indemnification under this Agreement without
regard to whether Lender or that Indemnitee has exercised any rights against the Mortgaged Property or any other security, pursued
any rights against any guarantor, or pursued any other rights available under the Loan Documents or applicable law. The obligation
of Borrower to indemnify the Indemnitees under this Agreement shall not be applicable to any Prohibited Activities or Conditions
or any other environmental contamination that occurs after:

 

(1)         the
date of any Foreclosure Event, or

 

(2)         if
Borrower has a right under applicable law to physical possession or control of the Mortgaged Property following the date of any
Foreclosure Event, the earlier of the date

 

(A)         Lender
takes physical possession and control of the Mortgaged Property, or

 

(B)         Lender
has the legal right to take physical possession and control of the Mortgaged Property;

 

provided, however, that in any such event,
Borrower (i) must have relinquished physical possession and control of the Mortgaged Property as of such date, and (ii) shall have
the burden of providing evidence to Lender's satisfaction that any Prohibited Activities or Conditions or any other environmental
contamination occurred after such date.

 

9.           Event
of Default.

 

Borrower understands
that a default of its obligations under this Agreement that is not cured after the expiration of all applicable notice and cure
periods, if any, shall be an Event of Default under the Loan Agreement (as provided in Article 14 thereof), and that in addition
to any remedies specified in this Agreement, Lender shall be entitled to exercise all of its rights and remedies under the Loan
Agreement and other Loan Documents, however, the obligations hereunder shall not be secured by the Security Instrument.

 

10.         Subrogation.

 

Borrower shall at
its sole cost and expense take any and all reasonable actions, including institution of legal action against third-parties, necessary
or appropriate to obtain reimbursement, payment or compensation from such persons responsible for any Prohibited Activities or
Conditions or for the presence of any Hazardous Materials at, in, on, under or near the Mortgaged Property or otherwise obligated
by law to bear the cost of any of the foregoing. Indemnitees shall be and hereby are subrogated to all of Borrower's rights now
or hereafter in such actions, suits, claims, or proceedings arising out of or relating to any Prohibited Activity or Condition
or any Hazardous Materials.

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11.         Termination
of Indemnification Obligations.

 

Except as provided
in Section 11(a), Section 11(b), and Section 11(c), upon full performance by Borrower of all of its obligations under the Loan
Documents, including payment in full by Borrower of all Indebtedness pursuant to the terms of the Loan Documents, either at the
Maturity Date or by voluntary prepayment, Borrower shall have no obligation to indemnify the lndemnitees from and after the date
of the receipt by Lender of payment in full of all Indebtedness under the Loan Documents (the "Repayment Date").
Notwithstanding the foregoing:

 

(a)          If
the payment of all or any part of the Indebtedness by Borrower, any Guarantor or any other Person should for any
reason subsequently be declared to be void or voidable under any state or federal law relating to creditors' rights, including
provisions of the Insolvency Laws relating to a Voidable Transfer, and if Lender is required to repay or restore, in whole or in
part, any such Voidable Transfer, or elects to do so upon the advice of its counsel, then this Agreement and the indemnification
obligations of Borrower under this Agreement shall automatically be revived, reinstated and restored, and shall exist as though
such Voidable Transfer had never been made and the Lien of the Security Instrument not been released.

 

(b)          The
indemnification obligations of Borrower under this Agreement shall survive payment in full of the Indebtedness with respect to
any claims, suits, orders, proceedings or actions existing as of the Repayment Date or which subsequently come into existence prior
to the date on which Lender repays or restores, in whole or in part, any such Voidable Transfer as set forth in Section 11(a).

 

(c)          The
obligation of Borrower to indemnify the Indemnitees under this Agreement, as limited by Section 8(g), shall survive the occurrence
of any Foreclosure Event, even if, as a result of the occurrence of such Foreclosure Event, the Indebtedness is paid or satisfied
in full.

 

12.         Entity
Representations.

 

Borrower represents and warrants that:

 

(a)          Borrower
has the full corporate, trust, limited liability company or partnership power and authority, as applicable, to execute and deliver
this Agreement and to perform its obligations hereunder;

 

(b)          the
execution, delivery and performance of this Agreement by Borrower has been duly and validly authorized;

 

(c)          all
requisite corporate, trust, limited liability company or partnership action, as applicable has been taken by Borrower to make this
Agreement valid and binding upon Borrower, enforceable in accordance with its terms, except as such enforceability may be limited
by applicable Insolvency Laws or the exercise of discretion by any court; and

 

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(d)          this
Agreement constitutes a valid, legal and binding obligation of Borrower, enforceable against it in accordance with the terms hereof,
except as such enforceability may be limited by applicable Insolvency Laws or the exercise of discretion by any court.

 

13.        Waiver.

 

Borrower hereby waives and relinquishes:

 

(a)          any
right or claim of right to cause a marshaling of Borrower's assets or to cause any Indemnitee to proceed against any other Person
or any of the security for the Indebtedness before proceeding under this Agreement against Borrower;

 

(b)          all
rights and remedies accorded by applicable law to indemnitors or guarantors or sureties, except any rights of subrogation which
Borrower may have, provided that the indemnity provided for hereunder shall neither be contingent upon the existence of any such
rights of subrogation nor subject to any actions, suits, claims, proceedings, orders or defenses whatsoever which may be asserted
in connection with the enforcement or attempted enforcement of such subrogation rights including any actions, suits, claims, proceedings,
or orders that such subrogation rights were abrogated by any acts of any Indemnitee;

 

(c)          the
right to assert a counterclaim, other than a mandatory or compulsory counterclaim, in any action or proceeding brought against
or by any Indemnitee;

 

(d)          notice
of acceptance hereof and of any action taken or omitted in reliance hereon;

 

(e)          presentment
for payment, demand of payment, protest or notice of nonpayment or failure to perform or observe, or other proof, or notice or
demand under this Agreement;

 

(f)          all
homestead exemption rights against the obligations hereunder and the benefits of any statutes of limitations or repose; and

 

(g)          any
limitation on the amount or type of damages, compensation or benefits payable by or for Borrower under workers' compensation acts,
disability benefit acts or other employee benefit acts.

 

Notwithstanding anything to the contrary
contained herein, Borrower hereby agrees to postpone the exercise of any rights of subrogation with respect to any collateral securing
the Indebtedness until the Indebtedness shall have been paid in full. No delay by any Indemnitee in exercising any right, power
or privilege under this Agreement shall operate as a waiver of any such power, privilege or right.

 

14.         Notices.

 

All notices, demands
and other communications under or concerning this Agreement shall be in writing and given in accordance with the provisions of
Section 15.02 (Notice) of the Loan Agreement.

 

15.         Rights
Cumulative.

 

The rights and remedies
provided herein are cumulative and not exclusive of any rights or remedies which Indemnitee has under the Note, the Loan Agreement,
the Security Instrument or any other Loan Document or would otherwise have at law or in equity.

 

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16.         Entire
Agreement.

 

This Agreement constitutes
the entire agreement of Borrower for the benefit of Lender and supersedes any prior agreements with respect to the subject matter
hereof.

 

17.         No
Modification Without Writing.

 

This Agreement may
not be terminated or modified in any way nor can any right of Lender or any obligation of Borrower be waived or modified, except
by a writing signed by Lender and Borrower.

 

18.         Severability.

 

Each provision of
this Agreement shall be interpreted so as to be effective and valid under applicable law, but if any provision of this Agreement
shall in any respect be ineffective or invalid under such law, such ineffectiveness or invalidity shall not affect the remainder
of such provision or the remaining provisions of this Agreement.

 

19.         Governing
Law.

 

This Agreement shall
be governed by and construed in accordance with the substantive law of the Property Jurisdiction without regard to the application
of choice of law principles that would result in the application of the laws of another jurisdiction.

 

20.         Jurisdiction.

 

Any controversy arising
under or in relation to this Agreement shall be litigated exclusively in the Property Jurisdiction without regard to conflict of
laws principles. The state and federal courts and authorities with jurisdiction in the Property Jurisdiction shall have exclusive
jurisdiction over all controversies which shall arise under or in relation to this Agreement or any other Loan Document. Borrower
irrevocably consents to service, jurisdiction and venue of such courts for any such litigation and waives any other venue to which
it might be entitled by virtue of domicile, habitual residence or otherwise.

 

21.         Successors
and Assigns.

 

Subject to the terms
of the Loan Agreement, no Borrower may transfer or assign any of its rights or obligations under this Agreement without the prior
written consent of Lender. Subject to the foregoing, this Agreement shall be continuing, irrevocable and binding on each Borrower
and its successors and assigns and shall inure to the benefit of Lender and the other Indemnitees, and Lender's successors and
assigns, including to any transferee pursuant to a Foreclosure Event.

 

22.         Time
is of the Essence.

 

Borrower agrees that,
with respect to each and every obligation and covenant contained in this Agreement, time is of the essence.

 

23.         Joint
and Several (or Solidary) Liability.

 

If
more than one Person executes this Agreement as Borrower, the obligations of such Persons shall be joint and several (solidary
instead for purposes of Louisiana law).

 

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24.         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.

 

(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.

 

(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
Borrower's knowledge is implicated in this Agreement or the phrase "to Borrower's knowledge" is used in this Agreement,
Borrower's knowledge or such phrase(s) shall be interpreted to mean to the best of Borrower's knowledge after reasonable and diligent
inquiry and investigation.

 

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

 

(h)          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.

 

25.         WAIVER
OF TRIAL BY JURY.

 

TO THE MAXIMUM
EXTENT PERMITTED BY APPLICABLE LAW, EACH OF BORROWER AND LENDER (A) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH
RESPECT TO ANY ISSUE ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, 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 GIVEN BY BORROWER AND LENDER, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF
COMPETENT LEGAL COUNSEL.

 

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.

 

[Remainder of Page Intentionally Blank]

 

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	 	BORROWER:
	 	 
	 	BR CARROLL ARIUM GRANDE LAKES
	 	OWNER, LLC, a Delaware limited liability company
	 	 	 
	 	By: 	/s/ Jordan Ruddy
	 	 	Jordan Rudddy
	 	 	Authorized Signatory

 

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EXHIBIT A 

TO

ENVIRONMENTAL INDEMNITY AGREEMENT

 

Description of the Land

 

(ARIUM Grande Lakes (f/k/a Venue Apartments)

 

Lot 1, Grande Lakes Apartments, according
to the plat thereof as recorded in Plat Book 59, Pages 46 and 47, Public Records of Orange County, Florida

 

TOGETHER WITH:

Tracts "A"
and "B", Grande Lakes Apartments, according to the plat thereof, as recorded in Plat Book 59, Pages 46 and 47, Public
Records of Orange County, Florida.

 

ALSO TOGETHER WITH:

Non-exclusive easements
for drainage set forth in Declaration of Covenants, Conditions, Restrictions, Easements and Reservations for Grande Lakes Master
Stormwater Management System, recorded on August 7, 2003, Official Records Book 7038, Page 2091, Public Records of Orange County,
Florida.

 

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