Document:

Freddie Mac Loan Number: 708272169

 

Property Name: Enders Place at Baldwin Park

 

MULTIFAMILY LOAN AND SECURITY AGREEMENT

(CME)

 

(Revised 7-20-2012)

 

	Borrower:	WAYPOINT ENDERS OWNER, LLC, a Delaware limited liability company
	 	 
	Lender:	JONES LANG LASALLE OPERATIONS, L.L.C., an Illinois limited liability company
	 	 
	Date:	October 2, 2012

 

 

 

Reserve Fund Information

(See Article IV)

 

 

 

Imposition Reserves       
Collect  Insurance      Collect Taxes     Deferred  water/sewer

(fill in “Collect” or “Deferred”

as appropriate for each item)  N/A 
Ground Rents  Deferred  assessments/other charges

 

 

 

	Repair Reserve	Repairs required?	x  Yes	 ̈  No
	 	 	 	 
	 	If Yes, is a Reserve required?	 ̈   Yes	x  No
	 	 	 	 
	If Yes to Repairs, but No Reserve, is a Letter of Credit required?	 ̈   Yes	x  No

 

 

 

	Replacement Reserve	xYes   If
    Yes:  x  Funded   ̈  Deferred
	 	 
	 	 ̈  No

 

 

 

	Rental Achievement Reserve	 ̈  Yes  If
    Yes:   ̈ Cash  
     ̈ Letter
    of Credit
	 	 
	 	x  No

 

 

	External Rate Cap Reserve	 ̈  Yes	x  No

 

 

 

	Other Reserve(s)	 ̈  Yes	x  No

 

	 	If Yes, specify:	 

 

 

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	ARTICLE I	DEFINED TERMS; CONSTRUCTION

 

	1.01	Defined Terms	1
	1.02	Construction	1
	 	 	 

	ARTICLE II	LOAN

	 	 	 
	2.01	Loan Terms	2
	2.02	Prepayment Premium	2
	2.03	Exculpation	2
	2.04	Application of Payments	2
	2.05	Usury Savings	2
	2.06	Adjustable Rate Mortgage - Third Party Cap Agreement	2
	 	 	 

	ARTICLE III	LOAN SECURITY AND GUARANTY

 

	3.01	Security Instrument	3
	3.02	Reserve Funds	3
	3.03	Uniform Commercial Code Security Agreement	4
	3.04	Cap Collateral	4
	3.05	Guaranty 	4
	 	 	 

	ARTICLE IV	RESERVE FUNDS AND REQUIREMENTS

 

	4.01	Reserves Generally	4
	4.02	Reserves for Taxes, Insurance and Other Charges	5
	4.03	Repairs; Repair Reserve Fund	6
	4.04	Replacement Reserve Fund	6
	4.05	Rental Achievement Provisions	6
	4.06	Reserved	6
	4.07	External Cap Agreement Reserve Fund	6
	 	 	 

	ARTICLE V	REPRESENTATIONS AND WARRANTIES

 

	5.01	Review of Documents 	7
	5.02	Condition of Mortgaged Property 	7
	5.03	No Condemnation 	7
	5.04	Actions; Suits; Proceedings 	7
	5.05	Environmental	7
	5.06	Commencement of Work; No Labor or Materialmen’s Claims 	8
	5.07	Compliance with Applicable Laws and Regulations 	9
	5.08	Access; Utilities; Tax Parcels 	9
	5.09	Licenses and Permits 	9

 

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	5.10	No Other Interests 	9
	5.11	Term of Leases	9
	5.12	No Prior Assignment; Prepayment of Rents	9
	5.13	Illegal Activity	10
	5.14	Taxes Paid 	10
	5.15	Title Exceptions 	10
	5.16	No Change in Facts or Circumstances	10
	5.17	Financial Statements  	10
	5.18	ERISA – Borrower Status 	10
	5.19	No Fraudulent Transfer or Preference 	11
	5.20	No Insolvency or Judgment	11
	5.21	Working Capital 	11
	5.22	Cap Collateral 	12
	5.23	Ground Lease 	12
	5.24	Purpose of Loan	12
	5.25	Survival	12
	 	 	 

	ARTICLE VI	BORROWER COVENANTS

	 	 	 
	6.01	Compliance with Laws	13
	6.02	Compliance with Organizational Documents	13
	6.03	Use of Mortgaged Property	13
	6.04	Non-Residential Leases	14
	6.05	Prepayment of Rents	16
	6.06	Inspection	16
	6.07	Books and Records; Financial Reporting	17
	6.08	Taxes; Operating Expenses; Ground Rents	20
	6.09	Preservation, Management and Maintenance of Mortgaged Property	21
	6.10	Property and Liability Insurance	23
	6.11	Condemnation	32
	6.12	Environmental Hazards	34
	6.13	Single Purpose Entity Requirements	36
	6.14	Repairs and Capital Replacements	41
	6.15	Residential Leases Affecting the Mortgaged Property	42
	6.16	Litigation; Government Proceedings	42
	6.17	Further Assurances and Estoppel Certificates; Lender’s Expenses	42
	6.18	Cap Collateral	43
	6.19	Ground Lease	43
	6.20	ERISA Requirements	43
	 	 	 

	ARTICLE VII	TRANSFERS OF THE MORTGAGED PROPERTY OR INTERESTS IN BORROWER

 

	7.01	Permitted Transfers	44
	7.02	Prohibited Transfers	45
	7.03	Conditionally Permitted Transfers	46

 

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	7.04	Preapproved Intrafamily Transfers	48
	7.05	Lender’s Consent to Prohibited Transfers	49

	ARTICLE VIII	SUBROGATION
	 	 
	ARTICLE IX	EVENTS OF DEFAULT AND REMEDIES

 

	9.01	Events of Default	52
	9.02	Protection of Lender’s Security; Security Instrument Secures Future Advances	56
	9.03	Remedies	56
	9.04	Forbearance	57
	9.05	Waiver of Marshalling	58

 

	ARTICLE X	RELEASE; INDEMNITY

 

	10.01	Release	58
	10.02	Indemnity	59
	 	 	 

	ARTICLE XI	MISCELLANEOUS PROVISIONS

	 	 	 
	11.01	Waiver of Statute of Limitations, Offsets and Counterclaims	63
	11.02	Governing Law; Consent to Jurisdiction and Venue	63
	11.03	Notice	64
	11.04	Successors and Assigns Bound	64
	11.05	Joint and Several Liability	65
	11.06	Relationship of Parties; No Third Party Beneficiary	65
	11.07	Severability; Amendments	65
	11.08	Disclosure of Information	65
	11.09	Determinations by Lender	66
	11.10	Sale of Note; Change in Servicer; Loan Servicing	66
	11.11	Supplemental Financing	66
	11.12	Defeasance	70
	11.13	Lender’s Rights to Sell or Securitize	75
	11.14	Cooperation with Rating Agencies and Investors	75
	11.15	Time is of the Essence	75

	 	 
	ARTICLE XII	DEFINITIONS
	 	 
	ARTICLE XIII	INCORPORATION OF ATTACHED RIDERS
	 	 
	ARTICLE XIV	INCORPORATION OF ATTACHED EXHIBITS

 

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MULTIFAMILY
LOAN AND SECURITY AGREEMENT

 

THIS MULTIFAMILY LOAN AND SECURITY AGREEMENT
(“Loan Agreement”) is dated as of the ___ day of __________, 2012 and is made by and between WAYPOINT ENDERS
OWNER, LLC, a Delaware limited liability company (“Borrower”), and JONES LANG LASALLE OPERATIONS, L.L.C, an
Illinois limited liability company (together with its successors and assigns, “Lender”).

 

RECITAL

 

Lender has agreed to make and Borrower has
agreed to accept a loan in the original principal amount of $17,500,000.00 (“Loan”). Lender is willing to make
the Loan to Borrower upon the terms and subject to the conditions set forth in this Loan Agreement.

 

AGREEMENT

 

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

 

		ARTICLE I	DEFINITIONS; CONSTRUCTION.

 

		1.01	Defined Terms. Each defined term in this Loan Agreement will have the meaning ascribed to that
term in Article XII unless otherwise defined in this Loan Agreement.

 

		1.02	Construction. The captions and headings of the Articles and Sections of this Loan Agreement
are for convenience only and will be disregarded in construing this Loan Agreement. Any reference in this Loan Agreement to an
“Exhibit,” an “Article” or a “Section” will, unless otherwise explicitly provided, be construed
as referring, respectively, to an Exhibit attached to this Loan Agreement or to an Article or Section of this Loan Agreement.
All Exhibits and Riders attached to or referred to in this Loan Agreement are incorporated by reference in this Loan Agreement.
Any reference in this Loan Agreement to a statute or regulation will be construed as referring to that statute or regulation as
amended from time to time. Use of the singular in this Loan Agreement includes the plural and use of the plural includes the singular.
As used in this Loan Agreement, the term “including” means “including, but not limited to” and the term
“includes” means “includes without limitation.” The use of one gender includes the other gender, as the
context may require. Unless the context requires otherwise, (a) any definition of or reference to any agreement, instrument or
other document in this Loan Agreement will be construed as referring to such agreement, instrument or other document as from time
to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth in this Loan Agreement), and (b) any reference in this Loan Agreement to any Person will be construed to include such
Person’s successors and assigns.

 

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		ARTICLE II	LOAN.

 

		2.01	Loan Terms. The Loan will be evidenced by the Note and will bear interest and be paid in accordance
with the payment terms set forth in the Note.

 

		2.02	Prepayment Premium. Borrower will be required to pay a prepayment premium in connection with
certain prepayments of the Indebtedness, including a payment made after Lender’s exercise of any right of acceleration of
the Indebtedness, as provided in the Note.

 

		2.03	Exculpation. Borrower’s personal liability for payment of the Indebtedness and for performance
of the other obligations to be performed by it under this Loan Agreement is limited in the manner, and to the extent, provided
in the Note.

 

		2.04	Application of Payments. If at any time Lender receives, from Borrower or otherwise, any amount
applicable to the Indebtedness which is less than all amounts due and payable at such time, then Lender may apply that payment
to amounts then due and payable in any manner and in any order determined by Lender (unless otherwise required by applicable law),
in Lender’s sole and absolute discretion. Neither Lender’s acceptance of an amount that is less than all amounts then
due and payable, nor Lender’s application of such payment in the manner authorized, will constitute or be deemed to constitute
either a waiver of the unpaid amounts or an accord and satisfaction. Notwithstanding the application of any such amount to the
Indebtedness, Borrower’s obligations under this Loan Agreement, the Note and all other Loan Documents will remain unchanged.

 

		2.05	Usury Savings. If any applicable law limiting the amount of interest or other charges permitted
to be collected from Borrower is interpreted so that any charge provided for in any Loan Document, whether considered separately
or together with other charges levied in connection with any other Loan Document, violates that law, and Borrower is entitled to
the benefit of that law, that charge is hereby reduced to the extent necessary to eliminate that violation. The amounts, if any,
previously paid to Lender in excess of the permitted amounts will be applied by Lender to reduce the principal amount of the Indebtedness.
For the purpose of determining whether any applicable law limiting the amount of interest or other charges permitted to be collected
from Borrower has been violated, all Indebtedness which constitutes interest, as well as all other charges levied in connection
with the Indebtedness which constitute interest, will be deemed to be allocated and spread ratably over the stated term of the
Note. Unless otherwise required by applicable law, such allocation and spreading will be effected in such a manner that the rate
of interest so computed is uniform throughout the stated term of the Note.

 

		2.06	Adjustable Rate Mortgage - Third Party Cap Agreement. If (a) the Note does not provide for
interest to accrue at an adjustable or variable interest rate, and (b) a third party Cap Agreement is not required, then this Section 2.06
and Section 3.04 will be of no force or effect.

 

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		(a)	So long as there is no Event of Default, Lender or Loan Servicer will remit to Borrower each Cap Payment
received by Lender or Loan Servicer with respect to any month for which Borrower has paid in full the monthly installment of principal
and interest or interest only, as applicable, due under the Note. Alternatively, at Lender’s option, so long as there is
no Event of Default, Lender may apply a Cap Payment received by Lender or Loan Servicer with respect to any month to the applicable
monthly payment of accrued interest due under the Note if Borrower has paid in full the remaining portion of such monthly payment
of principal and interest or interest only, as applicable.

 

		(b)	Neither the existence of a Cap Agreement nor anything in this Loan Agreement will relieve Borrower
of its primary obligation to timely pay in full all amounts due under the Note and otherwise due on account of the Indebtedness.

 

		ARTICLE III	LOAN SECURITY AND GUARANTY.

 

		3.01	Security Instrument. Borrower will execute the Security Instrument dated of even date with
this Loan Agreement. The Security Instrument will be recorded in the applicable land records in the Property Jurisdiction.

 

		3.02	Reserve Funds. 

 

		(a)	Security Interest. To secure Borrower’s obligations under this Loan Agreement and to
further secure Borrower’s obligations under the Note and the other Loan Documents, Borrower conveys, pledges, transfers and
grants to Lender a security interest pursuant to the Uniform Commercial Code of the Property Jurisdiction or any other applicable
law in and to all money in the Reserve Funds, as the same may increase or decrease from time to time, all interest and dividends
thereon and all proceeds thereof.

 

		(b)	Supplemental Loan. If this Loan Agreement is entered into in connection with a Supplemental
Loan and if the same Person is or becomes both Senior Lender and Supplemental Lender, then:

 

		(i)	Borrower assigns and grants to Supplemental Lender a security interest in the Reserve Funds established
in connection with the Senior Indebtedness as additional security for all of Borrower’s obligations under the Supplemental
Note.

 

		(ii)	In addition, Borrower assigns and grants to Senior Lender a security interest in the Reserve Funds
established in connection with the Supplemental Indebtedness as additional security for all of Borrower’s obligations under
the Senior Note.

 

		(iii)	It is the intention of Borrower that all amounts deposited by Borrower in connection with either the
Senior Loan Documents, the Supplemental Loan Documents, or both, constitute collateral for the Supplemental Indebtedness secured
by the Supplemental Instrument and the Senior Indebtedness secured by the Senior Instrument, with the application of such amounts
to such Senior Indebtedness or Supplemental Indebtedness to be at the discretion of Senior Lender and Supplemental Lender.

 

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		3.03	Uniform Commercial Code Security Agreement. This Loan Agreement is also a security agreement
under the Uniform Commercial Code for any of the Mortgaged Property which, under applicable law, may be subjected to a security
interest under the Uniform Commercial Code, for the purpose of securing Borrower’s obligations under this Loan Agreement
and to further secure Borrower’s obligations under the Note, Security Instrument and other Loan Documents, whether such Mortgaged
Property is owned now or acquired in the future, and all products and cash and non-cash proceeds thereof (collectively, “UCC
Collateral”), and by this Loan Agreement, Borrower grants to Lender a security interest in the UCC Collateral.

 

		3.04	Cap Collateral. Reserved.

 

		3.05	Guaranty. Borrower will cause each Guarantor (if any) to execute a Guaranty of all or a portion
of Borrower’s obligations under the Loan Documents effective as of the date of this Loan Agreement.

 

		ARTICLE IV	RESERVE FUNDS AND REQUIREMENTS.

 

		4.01	Reserves Generally. 

 

		(a)	Establishment of Reserve Funds; Investment of Deposits. Unless otherwise provided in Section 4.04,
each Reserve Fund will be established on the date of this Loan Agreement and all Reserve Funds will be deposited in an Eligible
Account at an Eligible Institution or invested in “permitted investments” as then defined and required by the Rating
Agencies. Lender will not be obligated to open additional accounts or deposit Reserve Funds in additional institutions when the
amount of any Reserve Fund exceeds the maximum amount of the federal deposit insurance or guaranty. Borrower acknowledges and agrees
that it will not have the right to direct Lender as to any specific investment of monies in any Reserve Fund. Lender will not be
responsible for any losses resulting from investment of monies in any Reserve Fund or for obtaining any specific level or percentage
of earnings on such investment.

 

		(b)	Interest on Reserve Funds; Trust Funds. Unless applicable law requires, Lender will not be
required to pay Borrower any interest, earnings or profits on the Reserve Funds. Any amounts deposited with Lender under this Article
IV will not be trust funds, nor will they operate to reduce the Indebtedness, unless applied by Lender for that purpose pursuant
to the terms of this Loan Agreement.

 

		(c)	Use of Reserve Funds. Each Reserve Fund will, except as otherwise provided in this Loan Agreement,
be used for the sole purpose of paying, or reimbursing Borrower for payment of, the item(s) for which the applicable Reserve Fund
was established. Borrower acknowledges and agrees that, except as specified in this Loan Agreement, monies in one Reserve Fund
will not be used to pay, or reimburse Borrower for, matters for which another Reserve Fund has been established.

 

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		(d)	Termination of Reserve Funds. Upon the payment in full of the Indebtedness, Lender will pay
to Borrower all funds remaining in any Reserve Funds.

 

		4.02	Reserves for Taxes, Insurance and Other Charges.

 

		(a)	Deposits to Imposition Reserve Deposits. Borrower will deposit with Lender on the day monthly
installments of principal or interest, or both, are due under the Note (or on another day designated in writing by Lender), until
the Indebtedness is paid in full, an additional amount sufficient to accumulate with Lender the entire sum required to pay, when
due, the items marked “Collect” below. Except as provided in Section 4.02(e), Lender will not require Borrower to make
Imposition Reserve Deposits with respect to the items marked “Deferred” below.

 

		[Collect]	Hazard Insurance premiums or premiums for other Insurance required by Lender under Section 6.10

 

		[Collect]	Taxes and payments in lieu of taxes

 

		[Deferred]	water and sewer charges that could become a Lien on the Mortgaged Property

 

		[N/A]	Ground Rents

 

		[Deferred]	assessments or other charges that could become a Lien on the Mortgaged Property

 

The amounts deposited pursuant to
this Section 4.02(a) are collectively referred to in this Loan Agreement as the “Imposition Reserve Deposits.”
The obligations of Borrower for which the Imposition Reserve Deposits are required are collectively referred to in this Loan Agreement
as “Impositions.” The amount of the Imposition Reserve Deposits must be sufficient to enable Lender to pay each
Imposition before the last date upon which such payment may be made without any penalty or interest charge being added. Lender
will maintain records indicating how much of the monthly Imposition Reserve Deposits and how much of the aggregate Imposition Reserve
Deposits held by Lender are held for the purpose of paying Taxes, Insurance premiums, Ground Rent (if applicable) and each other
Imposition.

 

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		(b)	Disbursement of Imposition Reserve Deposits. Lender will apply the Imposition Reserve Deposits
to pay Impositions so long as no Event of Default has occurred and is continuing. Lender will pay all Impositions from the Imposition
Reserve Deposits held by Lender upon Lender’s receipt of a bill or invoice for an Imposition. If Borrower holds a ground
lessee interest in the Mortgaged Property and Imposition Reserve Deposits are collected for Ground Rent, then Lender will pay the
monthly or other periodic installments of Ground Rent from the Imposition Reserve Deposits, whether or not Lender receives a bill
or invoice for such installments. Lender will have no obligation to pay any Imposition to the extent it exceeds the amount of the
Imposition Reserve Deposits then held by Lender. Lender may pay an Imposition according to any bill, statement or estimate from
the appropriate public office, Ground Lessor (if applicable) or insurance company without inquiring into the accuracy of the bill,
statement or estimate or into the validity of the Imposition.

 

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

 

		(d)	Delivery of Invoices. Borrower will promptly deliver to Lender a copy of all notices of, and
invoices for, Impositions.

 

		(e)	Deferral of Collection of Any Imposition Reserve Deposits;
Delivery of Receipts. If Lender does not collect an Imposition Reserve Deposit with respect to an Imposition either marked
“Deferred” in Section 4.02(a) or pursuant to a separate written deferral by Lender, then on or before the date
each such Imposition is due, or on the date this Loan Agreement requires each such Imposition to be paid, Borrower will provide
Lender with proof of payment of each such Imposition. Upon Notice to Borrower, Lender may revoke its deferral and require Borrower
to deposit with Lender any or all of the Imposition Reserve Deposits listed in Section 4.02(a), regardless of whether any
such item is marked “Deferred” (i) if Borrower does not timely pay any of the Impositions, (ii) if Borrower fails
to provide timely proof to Lender of such payment, or (iii) at any time during the existence of an Event of Default.

 

		4.03	Repairs; Repair Reserve Fund. Reserved.

 

		4.04	Replacement Reserve Fund. See Rider.

 

		4.05	Rental Achievement Provisions. Reserved.

 

		4.06	Reserved.

 

		4.07	External Cap Agreement Reserve Fund. Reserved.

 

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		ARTICLE V	REPRESENTATIONS AND WARRANTIES.

 

Borrower represents and warrants to Lender
as follows as of the date of this Loan Agreement:

 

		5.01	Review of Documents. Borrower has reviewed (a) the Note, (b) the Security Instrument,
(c) the Commitment Letter, and (d) all other Loan Documents.

 

		5.02	Condition of Mortgaged Property. Except as Borrower may have disclosed to Lender in writing
in connection with the issuance of the Commitment Letter, the Mortgaged Property has not been damaged by fire, water, wind or other
cause of loss, or any previous damage to the Mortgaged Property has been fully restored.

 

		5.03	No Condemnation. No part of the Mortgaged Property has been taken in Condemnation or other
like proceeding, and, to the best of Borrower’s knowledge after due inquiry and investigation, no such proceeding is pending
or threatened for the partial or total Condemnation or other taking of the Mortgaged Property.

 

		5.04	Actions; Suits; Proceedings. There are no judicial, administrative, mediation or arbitration
actions, suits or proceedings pending or, to the best of Borrower’s knowledge, threatened in writing against or affecting
Borrower (and, if Borrower is a limited partnership, any of its general partners or if Borrower is a limited liability company,
any member of Borrower) or the Mortgaged Property which, if adversely determined, would have a Material Adverse Effect.

 

		5.05	Environmental. Except as previously disclosed by Borrower to Lender in writing (which written
disclosure may be in certain environmental assessments and other written reports accepted by Lender in connection with the funding
of the Indebtedness and dated prior to the date of this Loan Agreement), each of the following is true:

 

		(a)	Borrower has not at any time engaged in, caused or permitted any Prohibited Activities or Conditions
on the Mortgaged Property.

 

		(b)	To the best of Borrower’s knowledge after due inquiry and investigation, no Prohibited Activities
or Conditions exist or have existed on the Mortgaged Property.

 

		(c)	The Mortgaged Property does not now contain any underground storage tanks, and, to the best of Borrower’s
knowledge after due inquiry and investigation, the Mortgaged Property has not contained any underground storage tanks in the past.
If there is an underground storage tank located on the Mortgaged Property that has been previously disclosed by Borrower to Lender
in writing, that tank complies with all requirements of Hazardous Materials Laws.

 

		(d)	To the best of Borrower’s knowledge after due inquiry and investigation, Borrower has complied
with all Hazardous Materials Laws, including all requirements for notification regarding releases of Hazardous Materials. Without
limiting the generality of the foregoing, all Environmental Permits required for the operation of the Mortgaged Property in accordance
with Hazardous Materials Laws now in effect have been obtained and all such Environmental Permits are in full force and effect.

 

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		(e)	To the best of Borrower’s knowledge after due inquiry and investigation, no event has occurred
with respect to the Mortgaged Property that constitutes, or with the passage of time or the giving of notice, or both, would constitute,
noncompliance with the terms of any Environmental Permit.

 

		(f)	There are no actions, suits, claims or proceedings pending or, to the best of Borrower’s knowledge
after due inquiry and investigation, threatened in writing, that involve the Mortgaged Property and allege, arise out of, or relate
to any Prohibited Activity or Condition.

 

		(g)	Borrower has received no actual or constructive notice of 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 property that
is adjacent to the Mortgaged Property.

 

		5.06	Commencement of Work; No Labor or Materialmen’s Claims. Except as set forth on Exhibit E,
prior to the recordation of the Security Instrument, no work of any kind has been or will be commenced or performed upon the Mortgaged
Property, and no materials or equipment have been or will be delivered to or upon the Mortgaged Property, for which the contractor,
subcontractor or vendor continues to have any rights including the existence of or right to assert or file a mechanic’s or
materialman’s Lien. If any such work of any kind has been commenced or performed upon the Mortgaged Property, or if any such
materials or equipment have been ordered or delivered to or upon the Mortgaged Property, then prior to the execution of the Security
Instrument, Borrower has satisfied each of the following conditions:

 

		(a)	Borrower has fully disclosed in writing to the title insurance company issuing the mortgagee title
insurance policy insuring the Lien of the Security Instrument that work has been commenced or performed on the Mortgaged Property,
or materials or equipment have been ordered or delivered to or upon the Mortgaged Property.

 

		(b)	Borrower has obtained and delivered to Lender and the title company issuing the mortgagee title insurance
policy insuring the Lien of the Security Instrument Lien waivers from all contractors, subcontractors, suppliers or any other applicable
party, pertaining to all work commenced or performed on the Mortgaged Property, or materials or equipment ordered or delivered
to or upon the Mortgaged Property.

 

Borrower represents and warrants
that all parties furnishing labor and materials for which a Lien or claim of Lien may be filed against the Mortgaged Property have
been paid in full and, except for such Liens or claims insured against by the policy of title insurance to be issued in connection
with the Loan, there are no mechanics’, laborers’ or materialmen’s Liens or claims outstanding for work, labor
or materials affecting the Mortgaged Property, whether prior to, equal with or subordinate to the Lien of the Security Instrument.

 

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		5.07	Compliance with Applicable Laws and Regulations. To
the best of Borrower’s knowledge after due inquiry and investigation, (a) all Improvements and the use of the Mortgaged
Property comply with all applicable statutes, rules and regulations, including all applicable statutes, rules and regulations pertaining
to requirements for equal opportunity, anti-discrimination, fair housing, environmental protection, zoning and land use (“legal,
non-conforming” status with respect to uses or structures will be considered to comply with zoning and land use requirements
for the purposes of this representation), (b) the Improvements
comply with applicable health, fire, and building codes, and (c)
there is no evidence of any illegal activities relating to controlled
substances on the Mortgaged Property.

 

		5.08	Access; Utilities; Tax Parcels. The Mortgaged Property (a) has ingress and egress via
a publicly dedicated right of way or via an irrevocable easement permitting ingress and egress, (b) is served by public utilities
and services generally available in the surrounding community or otherwise appropriate for the use in which the Mortgaged Property
is currently being utilized, and (c) constitutes one or more separate tax parcels.

 

		5.09	Licenses and Permits. Borrower, any commercial tenant of the Mortgaged Property and/or any
operator of the Mortgaged Property is in possession of all material licenses, permits and authorizations required for use of the
Mortgaged Property, which are valid and in full force and effect as of the date of this Loan Agreement.

 

		5.10	No Other Interests. To the best of Borrower’s knowledge after due inquiry and investigation,
no Person has (a) any possessory interest in the Mortgaged Property or right to occupy the Mortgaged Property except under and
pursuant to the provisions of existing Leases by and between tenants and Borrower (a form of residential lease having been previously
provided to Lender together with the material terms of any and all Non-Residential Leases at the Mortgaged Property), or (b) an
option to purchase the Mortgaged Property or an interest in the Mortgaged Property, except as has
been disclosed to and approved in writing by Lender.

 

		5.11	Term of Leases. All Leases for residential dwelling units with respect to the Mortgaged Property
are on forms acceptable to Lender, are for initial terms of at least 6 months and not more than 2 years (unless otherwise
approved in writing by Lender), and do not include options to purchase.

 

		5.12	No Prior Assignment; Prepayment of Rents. Borrower has (a) not executed any prior assignment
of Rents (other than an assignment of Rents securing any prior indebtedness that is being assigned to Lender, or paid off and discharged
with the proceeds of the Loan evidenced by the Note or, if this Loan Agreement is entered into in connection with a Supplemental
Loan, other than an assignment of Rents securing any Senior Indebtedness), and (b) not performed any acts and has not executed,
and will not execute, any instrument which would prevent Lender from exercising its rights under any Loan Document. At the time
of execution of this Loan Agreement, unless otherwise approved by Lender in writing, there has been no prepayment of any Rents
for more than 2 months prior to the due dates of such Rents.

 

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		5.13	Illegal Activity. No portion of the Mortgaged Property has been or will be purchased with the
proceeds of any illegal activity.

 

		5.14	Taxes Paid. Borrower has filed all federal, state, county and municipal tax returns required
to have been filed by Borrower, and has paid all Taxes which have become due pursuant to such returns or to any notice of assessment
received by Borrower, and Borrower has no knowledge of any basis for additional assessment with respect to such taxes. To the best
of Borrower’s knowledge after due inquiry and investigation,
there are not presently pending any special assessments against the Mortgaged Property or any part of the Mortgaged Property.

 

		5.15	Title Exceptions. To the best of Borrower’s knowledge after due inquiry and investigation,
none of the items shown in the schedule of exceptions to coverage in the title policy issued to and accepted by Lender contemporaneously
with the execution of this Loan Agreement and insuring Lender’s interest in the Mortgaged Property will have a Material Adverse
Effect on the (a) ability of Borrower to pay the Loan in full, (b) ability of Borrower to use all or any part of the Mortgaged
Property in the manner in which the Mortgaged Property is being used on the Closing Date, except as set forth in Section 6.03,
(c) operation of the Mortgaged Property, or (d) value of the Mortgaged Property.

 

		5.16	No Change in Facts or Circumstances. 

 

		(a)	All information in the application for the Loan submitted to Lender, including all financial statements
for the Mortgaged Property, Borrower, and any Borrower Principal, and all Rent Schedules, reports, certificates, and any other
documents submitted in connection with the application (collectively, “Loan Application”) is complete and accurate
in all material respects as of the date such information was submitted to Lender.

 

		(b)	There has been no Material Adverse Change since the Loan Application was submitted to Lender in any
fact or circumstance that would make any information submitted as part of the Loan Application incomplete or inaccurate.

 

		(c)	The organizational structure of Borrower is as set forth in Exhibit H.

 

		5.17	Financial Statements. The financial
statements of Borrower and each Borrower Principal furnished to Lender as part of the Loan Application reflect in each case a positive
net worth as of the date of the applicable financial statement. 

 

		5.18	ERISA – Borrower Status. Borrower is not one of the following:

 

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		(a)	An “investment company,” or a company under the Control of an “investment company,”
as such terms are defined in the Investment Company Act of 1940, as amended.

 

		(b)	An “employee benefit plan,” as defined in Section 3(3) of ERISA, which is subject
to Title I of ERISA and the assets of Borrower do not constitute “plan assets” of one or more such plans within the
meaning of 29 C.F.R. Section 2510.3-101.

 

		5.19	No Fraudulent Transfer or Preference. No Borrower or Borrower Principal (a) has made, or is
making in connection with and as security for the Loan, a transfer of an interest in property of the Borrower or Borrower Principal
to or for the benefit of Lender or otherwise as security for any of the obligations under the Loan Documents which is or could
constitute a voidable preference under federal bankruptcy, state insolvency or similar applicable creditors’ rights laws,
or (b) has made, or is making in connection with the Loan, a transfer (including any transfer to or for the benefit of an insider
under an employment contract) of an interest of Borrower or any Borrower Principal in property, or (c) has incurred, or is
incurring in connection with the Loan, any obligation (including any obligation to or for the benefit of an insider under an employment
contract) within 2 years of the date of this Loan Agreement which is or could constitute a fraudulent transfer under federal bankruptcy,
state insolvency, or similar applicable creditors’ rights laws.

 

		5.20	No Insolvency or Judgment.

 

		(a)	No Pending Proceedings or Judgments. No Borrower or Borrower Principal is (i) the subject of
or a party to (other than as a creditor) any completed or pending bankruptcy, reorganization or insolvency proceeding, or (ii)
the subject of any judgment unsatisfied of record or docketed in any court located in the United States.

 

		(b)	Insolvency. Borrower is not presently insolvent, and the Loan will not render Borrower insolvent.
As used in this Section, the term “insolvent” means that the total of all of a Person’s liabilities (whether
secured or unsecured, contingent or fixed, or liquidated or unliquidated) is in excess of the value of all of the assets of the
Person that are available to satisfy claims of creditors.

 

		5.21	Working
Capital. After the Loan is made, Borrower intends to have sufficient working capital, including cash flow from the
Mortgaged Property or other sources, not only to adequately maintain the Mortgaged Property, but also to pay all of Borrower’s
outstanding debts as they come due (other than any balloon payment due upon the maturity of the Loan). Lender
acknowledges that no members or partners of Borrower or any Borrower Principal will be obligated to contribute equity to Borrower
for purposes of providing working capital to maintain the Mortgaged Property or to pay Borrower’s outstanding debts except
as may otherwise be required under their organizational documents.

 

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		5.22	Cap Collateral. Reserved.

 

		5.23	Ground Lease. Reserved.

 

		5.24	Purpose of Loan. The purpose of the Loan is as
indicated by the checked boxes below: 
	 	 	 

		 ̈	Refinance Loan: The Loan is a refinancing of existing indebtedness and, except to the extent
specifically required by Lender, there is to be no change in the ownership of either the Mortgaged Property or Borrower Principals.
The intended use of any cash received by Borrower from Lender, to the extent applicable, in connection with the refinancing has
been fully disclosed to Lender.

 

		x	Acquisition Loan: All of the consideration given or received or to be given or received in
connection with the acquisition of the Mortgaged Property has been fully disclosed to Lender. The Mortgaged Property was or will
be purchased from Enders Holdings, LLC (“Property Seller”). No Borrower or Borrower Principal has or had, directly
or indirectly (through a family member or otherwise), any interest in the Property Seller and the acquisition of the Mortgaged
Property is an arm’s-length transaction. To the best of Borrower’s knowledge after due inquiry and investigation, the
purchase price of the Mortgaged Property represents the fair market value of the Mortgaged Property and Property Seller is not
or will not be insolvent subsequent to the sale of the Mortgaged Property.

 

		 ̈	Supplemental Loan: The Loan is a Supplemental Loan and, except to the extent specifically required
or approved by Lender, there has been no change in the ownership of either the Mortgaged Property or Borrower Principals since
the date of the Senior Note. The intended use of any cash received by Borrower from Lender, to the extent applicable, in connection
with the refinancing has been fully disclosed to Lender.

 

		 ̈	Cross-Collateralized/Cross-Defaulted Loan Pool: The Loan is part of a cross-collateralized/cross-defaulted
pool of loans described as follows:

 

____   being
simultaneously made to Borrower and/or Borrower’s Affiliates

 

____   made
previously to Borrower and/or Borrower’s Affiliates

 

The intended use of any cash received
by Borrower from Lender, to the extent applicable, in connection with the Loan and the other loans comprising the cross-collateralized/cross-defaulted
loan pool has been fully disclosed to Lender.

 

		5.25	Survival. The representations and warranties set forth in this Loan Agreement will survive
until the Indebtedness is paid in full; however, the representations and warranties set forth in Section 5.05 will survive
beyond repayment of the entire Indebtedness, to the extent provided in Section 10.02(i).

 

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		ARTICLE VI	BORROWER COVENANTS.

 

		6.01	Compliance with Laws. Borrower will comply with all laws, ordinances, rules, regulations and
requirements of any Governmental Authority having jurisdiction over the Mortgaged Property and all licenses and permits and all
recorded covenants and agreements relating to or affecting the Mortgaged Property, including all laws, ordinances, regulations,
requirements and covenants pertaining to health and safety, construction of improvements on the Mortgaged Property, Repairs, Capital
Replacements, fair housing, disability accommodation, zoning and land use, applicable building codes, special use permits and environmental
regulations, Leases and the maintenance and disposition of tenant security deposits. Borrower will take appropriate measures to
prevent, and will not engage in or knowingly permit, any illegal activities at the Mortgaged Property, including those that could
endanger tenants or visitors, result in damage to the Mortgaged Property, result in forfeiture of the Mortgaged Property, or otherwise
materially impair the Lien created by the Security Instrument or Lender’s interest in the Mortgaged Property. Borrower will
at all times maintain records sufficient to demonstrate compliance with the provisions of this Section 6.01.

 

		6.02	Compliance with Organizational Documents. Borrower will at all times comply with all laws,
regulations and requirements of any Governmental Authority relating to Borrower’s formation, continued existence and good
standing in its state of formation and, if different, in the Property Jurisdiction. Borrower will at all times comply with its
organizational documents, including its partnership agreement (if Borrower is a partnership), its by-laws (if Borrower is a corporation
or housing cooperative corporation or association) or its operating agreement (if Borrower is a limited liability company or tenancy-in-common).
If Borrower is a housing cooperative corporation or association, Borrower will at all times maintain its status as a “cooperative
housing corporation” as such term is defined in Section 216(b) of the Internal Revenue Code of 1986, as amended, or
any successor statute thereto.

 

		6.03	Use of Mortgaged Property. Unless required by applicable law, without the prior written consent
of Lender, Borrower will not take any of the following actions:

 

		(a)	Allow changes in the use for which all or any part of the Mortgaged Property is being used at the
time this Loan Agreement is executed.

 

		(b)	Convert any individual dwelling units or common areas to commercial use.

 

		(c)	Initiate a change in the zoning classification of the Mortgaged Property or acquiesce to a change
in the zoning classification of the Mortgaged Property.

 

		(d)	Establish any condominium or cooperative regime with respect to the Mortgaged Property beyond any
which may be in existence on the date of this Loan Agreement.

 

		(e)	Combine all or any part of the Mortgaged Property with all or any part of a tax parcel which is not
part of the Mortgaged Property.

 

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		(f)	Subdivide or otherwise split any tax parcel constituting all or any part of the Mortgaged Property.

 

		(g)	Add to or change any location at which any of the Mortgaged Property is stored, held or located unless
Borrower (i) gives Notice to Lender within 30 days after the occurrence of such addition or change, (ii) executes and delivers
to Lender any modifications of or supplements to this Loan Agreement that Lender may require, and (iii) authorizes the filing of
any financing statement which may be filed in connection with this Loan Agreement, as Lender may require.

 

Notwithstanding anything contained
in this Section to the contrary, if Borrower is a housing cooperative corporation or association, Lender acknowledges and consents
to Borrower’s use of the Mortgaged Property as a housing cooperative.

 

		6.04	Non-Residential Leases. 

 

		(a)	Prohibited New Non-Residential Leases or Modified Non-Residential Leases. Except as set forth
in Section 6.04(b), Borrower will not enter into any New Non-Residential Lease, enter into any Modified Non-Residential Lease
or terminate any Non-Residential Lease (including any Non-Residential Lease in existence on the date of this Loan Agreement) without
the prior written consent of Lender.

 

		(b)	New Non-Residential Leases or Modified Non-Residential Leases for which Lender’s Consent
is Not Required. Lender’s consent will not be required for Borrower to enter into a Modified Non-Residential Lease or
a New Non-Residential Lease, provided that the Modified Non-Residential Lease or New Non-Residential Lease satisfies each of the
following requirements:

 

		(i)	The tenant under the New Non-Residential Lease or Modified Non-Residential Lease is not an Affiliate
of Borrower or any Guarantor.

 

		(ii)	The terms of the New Non-Residential Lease or Modified Non-Residential Lease are at least as favorable
to Borrower as those customary in the applicable market at the time Borrower enters into the New Non-Residential Lease or Modified
Non-Residential Lease.

 

		(iii)	The Rents paid to Borrower pursuant to the New Non-Residential Lease or Modified Non-Residential Lease
are not less than 90% of the rents paid to Borrower pursuant to the Non-Residential Lease, if any, for that portion of the Mortgaged
Property that was in effect prior to the New Non-Residential Lease or Modified Non-Residential Lease.

 

		(iv)	The term of the New Non-Residential Lease or Modified Non-Residential Lease, including any option
to extend, is 10 years or less.

 

		(v)	Any New Non-Residential Lease must provide that the space may not be used
or operated, in whole or in part, for any of the following: 

 

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		(A)	The operation of a so-called “head shop” or other business devoted to the sale of articles
or merchandise normally used or associated with illegal or unlawful activities such as, but not limited to, the sale of paraphernalia
used in connection with marijuana or controlled drugs or substances.

 

		(B)	A gun shop, shooting gallery or firearms range.

 

		(C)	A so-called massage parlor or any business which sells, rents or permits the viewing of so-called
“adult” or pornographic materials such as, but not limited to, adult magazines, books, movies, photographs, sexual
aids, sexual articles and sex paraphernalia.

 

		(D)	Any use involving the sale or distribution of any flammable liquids, gases or other Hazardous Materials.

 

		(E)	An off-track betting parlor or arcade.

 

		(F)	A liquor store or other establishment whose primary business is the sale of alcoholic beverages for
off-site consumption.

 

		(G)	A burlesque or strip club.

 

		(H)	Any illegal activity.

 

		(vi)	The aggregate of the income derived from the space leased pursuant to the New Non-Residential Lease
accounts for less than 20% of the gross income of the Mortgaged Property on the date that Borrower enters into the New Non-Residential
Lease.
	 	 	 

		(vii)	Such New Non-Residential Lease is not an oil or gas lease, pipeline agreement
or other instrument related to the production or sale of oil or natural gas.

 

		(c)	Executed Copies of Non-Residential Leases. Borrower will, without request by Lender, deliver
a fully executed copy of each Non-Residential Lease to Lender promptly after such Non-Residential Lease is signed.

 

		(d)	Subordination and Attornment Requirements. All Non-Residential Leases, regardless of whether
Lender’s consent or approval is required, will specifically include the following provisions:

 

		(i)	The Lease is subordinate to the Lien of the Security Instrument, with such subordination to be self-executing.

 

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		(ii)	The tenant will attorn to Lender and any purchaser at a foreclosure sale, such attornment to be self-executing
and effective upon acquisition of title to the Mortgaged Property by any purchaser at a foreclosure sale or by Lender in any manner.

 

		(iii)	The tenant agrees to execute such further evidences of attornment as Lender or any purchaser at a
foreclosure sale may from time to time request.

 

		(iv)	The tenant will, upon receipt of a written request from Lender following the occurrence of and during
the continuance of an Event of Default, pay all Rents payable under the Lease to Lender.

 

		6.05	Prepayment of Rents. Borrower will not receive or accept Rent under any Lease (whether a residential
Lease or a Non-Residential Lease) for more than 2 months in advance.

 

		6.06	Inspection. 

 

		(a)	Right of Entry. Borrower will permit Lender, its agents, representatives and designees and
any interested Governmental Authority to make or cause to be made entries upon and inspections of the Mortgaged Property to inspect,
among other things, (i) Repairs, (ii) Capital Replacements, in process and upon completion, and (iii) Improvements (including environmental
inspections and tests performed by professional inspection engineers) during normal business hours, or at any other reasonable
time, upon reasonable Notice to Borrower if the inspection is to include occupied residential units (which Notice need not be in
writing). During normal business hours, or at any other reasonable time, Borrower will also permit Lender to examine all books
and records and contracts and bills pertaining to the foregoing. Notice to Borrower will not be required in the case of an emergency,
as determined in Lender’s Discretion, or when an Event of Default has occurred and is continuing.

 

		(b)	Inspection of Mold. If Lender determines that Mold has or may have developed as a result of
a water intrusion event or leak, Lender, at Lender’s Discretion, may require that a professional inspector inspect the Mortgaged
Property to confirm whether Mold has developed and, if so, thereafter as frequently as Lender determines is necessary until any
issue with Mold and its cause(s) are resolved to Lender’s satisfaction. Such inspection will be limited to a visual and olfactory
inspection of the area that has experienced the Mold, water intrusion event or leak. Borrower will be responsible for the cost
of each such professional inspection and any remediation deemed to be necessary as a result of the professional inspection. After
any issue with Mold is remedied to Lender’s satisfaction, Lender will not require a professional inspection any more frequently
than once every 3 years unless Lender otherwise becomes aware of Mold as a result of a subsequent water intrusion event or
leak.

 

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		(c)	Certification in Lieu of Inspection. If Lender or Loan Servicer determines not to conduct an
annual inspection of the Mortgaged Property, and in lieu thereof Lender requests a certification, Borrower will provide to Lender
a factually correct certification, each year that the annual inspection is waived, to the following effect:

 

Borrower has not received any written
complaint, notice, letter or other written communication from any tenant, Property Manager or governmental authority regarding
mold, fungus, microbial contamination or pathogenic organisms (“Mold”) or any activity, condition, event or omission
that causes or facilitates the growth of Mold on or in any part of the Mortgaged Property or, if Borrower has received any such
written complaint, notice, letter or other written communication, that Borrower has investigated and determined that no Mold activity,
condition or event exists or alternatively has fully and properly remediated such activity, condition, event or omission in compliance
with the Moisture Management Plan for the Mortgaged Property.

 

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

 

		6.07	Books and Records; Financial Reporting.

 

		(a)	Delivery of Books and Records. Borrower will keep and maintain at all times at the Mortgaged
Property or the Property Manager’s office, and upon Lender’s request will make available at the Mortgaged Property
(or, at Borrower’s option, at the Property Manager’s office), complete and accurate books of account and records (including
copies of supporting bills and invoices) adequate to reflect correctly the operation of the Mortgaged Property, in accordance with
GAAP consistently applied (or such other method which is reasonably acceptable to Lender), and copies of all written contracts,
Leases, and other instruments which affect the Mortgaged Property. The books, records, contracts, Leases and other instruments
will be subject to examination and inspection by Lender at any reasonable time.

 

		(b)	Delivery of Statement of Income and Expenses; Rent Schedule and Other Statements. Borrower
will furnish to Lender each of the following:

 

		(i)	Within 25 days after the end of each calendar quarter prior to Securitization and within 35 days after
each calendar quarter after Securitization, each of the following:

 

		(A)	A Rent Schedule dated no earlier than the date that is 5 days prior to the end of such quarter.

 

		(B)	A statement of income and expenses for Borrower’s operation of the Mortgaged Property that is
either of the following:

 

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		(1)	For the 12 month period ending on the last day of such quarter.

 

		(2)	If at the end of such quarter Borrower or any Affiliate of Borrower has owned the Mortgaged Property
for less than 12 months, for the period commencing with the acquisition of the Mortgaged Property by Borrower or its Affiliate,
and ending on the last day of such quarter.

 

		(ii)	Within 90 days after the end of each fiscal year of Borrower, each of the following:

 

		(A)	An annual statement of income and expenses for Borrower’s operation of the Mortgaged Property
for that fiscal year.

 

		(B)	A statement of changes in financial position of Borrower relating to the Mortgaged Property for that
fiscal year.

 

		(C)	A balance sheet showing all assets and liabilities of Borrower relating to the Mortgaged Property
as of the end of that fiscal year and a profit and loss statement for Borrower.

 

		(D)	An accounting of all security deposits held pursuant to all Leases, including the name of the institution
(if any) and the names and identification numbers of the accounts (if any) in which such security deposits are held and the name
of the person to contact at such financial institution, along with any authority or release necessary for Lender to access information
regarding such accounts.

 

		(iii)	Within 30 days after the date of filing, copies of all tax returns filed by Borrower.

 

		(c)	Delivery of Borrower Financial Statements Upon Request. Borrower will furnish to Lender each
of the following:

 

		(i)	Upon Lender’s request, in Lender’s sole and absolute discretion prior to a Securitization,
and thereafter upon Lender’s request in Lender’s Discretion, a monthly Rent Schedule and a monthly statement of income
and expenses for Borrower’s operation of the Mortgaged Property, in each case within 25 days after the end of each month.

 

		(ii)	Upon Lender’s request in Lender’s sole and absolute discretion prior to a Securitization,
and thereafter upon Lender’s request in Lender’s Discretion, a statement that identifies all owners of any interest
in Borrower and any Designated Entity for Transfers and the interest held by each (unless Borrower or any Designated Entity for
Transfers is a publicly-traded entity in which case such statement of ownership will not be required), and if Borrower or a Designated
Entity for Transfers is a corporation then all officers and directors of Borrower and the Designated Entity for Transfers, and
if Borrower or a Designated Entity for Transfers is a limited liability company then all Managers who are not members, in each
case within 10 days after such request.

 

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		(iii)	Upon Lender’s request in Lender’s Discretion, such other financial information or property
management information (including information on tenants under Leases to the extent such information is available to Borrower,
copies of bank account statements from financial institutions where funds owned or controlled by Borrower are maintained, and an
accounting of security deposits) as may be required by Lender from time to time, in each case within 30 days after such request.

 

		(iv)	Upon Lender’s request in Lender’s Discretion, a monthly property management report for
the Mortgaged Property, showing the number of inquiries made and rental applications received from tenants or prospective tenants
and deposits received from tenants and any other information requested by Lender within 30 days after such request. However,
Lender will not require the foregoing more frequently than quarterly except when there has been an Event of Default and such Event
of Default is continuing, in which case Lender may require Borrower to furnish the foregoing more frequently.

 

		(d)	Form of Statements; Audited Financials. A natural person having authority to bind Borrower
(or the SPE Equity Owner or Guarantor, as applicable) will certify each of the statements, schedules and reports required by Sections
6.07(b), 6.07(c) and 6.07(f) to be complete and accurate. Each of the statements, schedules and reports required by Sections 6.07(b),
6.07(c)(i) and (iii) and 6.07(f) will be in such form and contain such detail as Lender may reasonably require. Lender also may
require that any of the statements, schedules or reports listed in Sections 6.07(b), 6.07(c) and 6.07(f) be audited at Borrower’s
expense by independent certified public accountants acceptable to Lender, at any time when an Event of Default has occurred and
is continuing or at any time that Lender, in its reasonable judgment, determines that audited financial statements are required
for an accurate assessment of the financial condition of Borrower or of the Mortgaged Property.

 

		(e)	Failure to Timely Provide Financial Statements. If Borrower fails to provide in a timely manner
the statements, schedules and reports required by Sections 6.07(b), 6.07(c) and 6.07(f), Lender will give Notice to Borrower specifying
the statements, schedules and reports required by Sections 6.07(b), 6.07(c) and 6.07(f) that Borrower has failed to provide. If
Borrower has not provided the required statements, schedules and reports within 10 Business Days following such Notice, then
(i) Borrower will pay a late fee of $500 for each late statement, schedule or report, plus an additional $500 per month that
any such statement, schedule or report continues to be late, and (ii) Lender will have the right to have Borrower’s
books and records audited, at Borrower’s expense, by independent certified public accountants selected by Lender in order
to obtain such statements, schedules and reports, and all related costs and expenses of Lender will become immediately due and
payable and will become an additional part of the Indebtedness as provided in Section 9.02. Notice to Borrower of Lender’s
exercise of its rights to require an audit will not be required in the case of an emergency, as determined in Lender’s Discretion,
or when an Event of Default has occurred and is continuing.

 

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		(f)	Delivery of Guarantor and SPE Equity Owner Financial Statements Upon Request. Borrower will
cause each Guarantor and, at Lender’s request in Lender’s Discretion, any SPE Equity Owner, to provide to Lender (i)
within 90 days after the close of such party’s fiscal year, such party’s balance sheet and profit and loss statement
(or if such party is a natural person, within 90 days after the close of each calendar year, such party’s personal financial
statements) in form reasonably satisfactory to Lender and certified by such party to be accurate and complete, and (ii) such additional
financial information (including copies of state and federal tax returns with respect to any SPE Equity Owner but Lender will only
require copies of such tax returns with respect to each Guarantor if an Event of Default has occurred and is continuing) as Lender
may reasonably require from time to time and in such detail as reasonably required by Lender.

 

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

 

		(h)	Credit Reports. Borrower authorizes Lender to obtain a credit report on Borrower at any time.

 

		6.08	Taxes; Operating Expenses; Ground Rents. 

 

		(a)	Payment of Taxes and Ground Rent. Subject to the provisions of Sections 6.08(c) and (d), Borrower
will pay or cause to be paid (i) all Taxes when due and before the addition of any interest, fine, penalty or cost for nonpayment,
and (ii) if Borrower’s interest in the Mortgaged Property is as a Ground Lessee, then the monthly or other periodic installments
of Ground Rent before the last date upon which each such installment may be made without penalty or interest charges being added.

 

		(b)	Payment of Operating Expenses. Subject to the provisions of Section 6.08(c), Borrower
will (i) pay the expenses of operating, managing, maintaining and repairing the Mortgaged Property (including utilities, Repairs
and Capital Replacements) before the last date upon which each such payment may be made without any penalty or interest charge
being added, and (ii) pay Insurance premiums at least 30 days prior to the expiration date of each policy of Insurance, unless
applicable law specifies some lesser period.

 

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		(c)	Payment of Impositions and Reserve Funds. If Lender is collecting Imposition Reserve Deposits
pursuant to Article IV, then so long as no Event of Default exists, Borrower will not be obligated to pay any Imposition for
which Imposition Reserve Deposits are being collected, whether Taxes, Insurance premiums, Ground Rent (if applicable) or any other
individual Impositions, but only to the extent that sufficient Imposition Reserve Deposits are held by Lender for the purpose of
paying that specific Imposition and Borrower has timely delivered to Lender any bills or premium notices that it has received with
respect to that specific Imposition (other than Ground Rent). Lender will have no liability to Borrower for failing to pay any
Impositions to the extent that (i) any Event of Default has occurred and is continuing, (ii) insufficient Imposition Reserve Deposits
are held by Lender at the time an Imposition becomes due and payable, or (iii) Borrower has failed to provide Lender with bills
and premium notices as provided in this Section.

 

		(d)	Right to Contest. Borrower, at its own expense, may contest by appropriate legal proceedings,
conducted diligently and in good faith, the amount or validity of any Imposition other than Insurance premiums and Ground Rent
(if applicable), if (i) Borrower notifies Lender of the commencement or expected commencement of such proceedings, (ii) the Mortgaged
Property is not in danger of being sold or forfeited, (iii) if Borrower has not already paid the Imposition, Borrower deposits
with Lender reserves sufficient to pay the contested Imposition, if requested by Lender, and (iv) Borrower furnishes whatever additional
security is required in the proceedings or is reasonably requested by Lender, which may include the delivery to Lender of reserves
established by Borrower to pay the contested Imposition.

 

		6.09	Preservation, Management and Maintenance of Mortgaged Property. 

 

		(a)	Maintenance of Mortgaged Property; No Waste. Borrower will keep the Mortgaged Property in good
repair, including the replacement of Personalty and Fixtures with items of equal or better function and quality. Borrower will
not commit waste or permit impairment or deterioration of the Mortgaged Property.

 

		(b)	Abandonment of Mortgaged Property. Borrower will not abandon the Mortgaged Property.

 

		(c)	Preservation of Mortgaged Property. Borrower will restore or repair promptly, in a good and
workmanlike manner, any damaged part of the Mortgaged Property to the equivalent of its original condition, or such other condition
as Lender may approve in writing, whether or not Insurance proceeds or Condemnation awards are available to cover any costs of
such Restoration or repair; provided, however, that Borrower will not be obligated to perform such Restoration or repair if (i)
no Event of Default has occurred and is continuing, and (ii) Lender has elected to apply any available Insurance proceeds and/or
Condemnation awards to the payment of Indebtedness pursuant to Section 6.10(j) or Section 6.11(d).

 

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		(d)	Property Management. Borrower will provide for professional management of the Mortgaged Property
by the Property Manager or by a residential rental Property Manager satisfactory to Lender at all times under a property management
agreement approved by Lender in writing. Borrower will not surrender, terminate, cancel, modify, renew or extend its property management
agreement, or enter into any other agreement relating to the management or operation of the Property with Property Manager or any
other Person, or consent to the assignment by the Property Manager of its interest under such property management agreement, in
each case without the consent of Lender, which consent will not be unreasonably withheld. If at any time Lender consents to the
appointment of a new Property Manager, such new Property Manager and Borrower will, as a condition of Lender’s consent, execute
an Assignment of Management Agreement in a form acceptable to Lender. If any such replacement Property Manager is an Affiliate
of Borrower, and if a nonconsolidation opinion was delivered on the Closing Date, Borrower will deliver to Lender an updated nonconsolidation
opinion in form and substance satisfactory to the Rating Agencies (unless waived by the Rating Agencies) with regard to nonconsolidation.

 

		(e)	Alteration of Mortgaged Property.

 

		(i)	Borrower will give Notice to Lender of and, unless otherwise
directed in writing by Lender, will appear in and defend any action or proceeding purporting to affect the Mortgaged Property,
Lender’s security or Lender’s rights under this Loan Agreement. Borrower will not (and will not permit any tenant
or other Person to) remove, demolish or alter the Mortgaged Property or any part of the Mortgaged Property, including any removal,
demolition or alteration occurring in connection with a rehabilitation of all or part of the Mortgaged Property, except that each
of the following is permitted:

 

		(A)	Repairs or Capital Replacements pursuant to Sections 4.03 or 4.04.

 

		(B)	Replacement of tangible Personalty.

 

		(C)	If Borrower is a cooperative housing corporation or association, Repairs or Capital Replacements to
the extent permitted with respect to individual dwelling units under the form of a proprietary lease or occupancy agreement.

 

		(D)	Repairs and Capital Replacements in connection with making an individual unit ready for a new occupant
or pursuant to Sections 6.09(a) and (c).

 

		(E)	Repairs made in connection with and pursuant to the Repair Schedule of Work, if applicable.

 

		(ii)	Reserved.

 

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		(f)	Establishment of MMP. Unless otherwise waived by Lender in writing, Borrower will have or will
establish and will adhere to the MMP. If Borrower is required to have an MMP, Borrower will keep all MMP documentation at the Mortgaged
Property or at the Property Manager’s office and available for review by Lender or the Loan Servicer during any annual assessment
or other inspection of the Mortgaged Property that is required by Lender. At a minimum, the MMP must contain a provision for (i)
staff training, (ii) information to be provided to tenants, (iii) documentation of the plan, (iv) the appropriate protocol for
incident response and remediation, and (v) routine, scheduled inspections of common space and unit interiors.

 

		(g)	No Reduction of Housing Cooperative Charges. If Borrower is a housing cooperative corporation
or association, until the Indebtedness is paid in full, Borrower will not reduce the maintenance fees, charges or assessments payable
by shareholders or residents under proprietary leases or occupancy agreements below a level which is sufficient to pay all expenses
of Borrower, including all operating and other expenses for the Mortgaged Property and all payments due pursuant to the terms of
the Note and any Loan Documents.

 

		6.10	Property and Liability Insurance.

 

		(a)	Hazard and Other Insurance. At all times during the term of this Loan Agreement, Borrower will
maintain, at its sole cost and expense, for the mutual benefit of Borrower and Lender, the following Insurance coverages:

 

		(i)	All-Risks of Physical Loss. Insurance against any peril included within the classification
“All Risks of Physical Loss” in amounts not less than the Replacement Cost of the
Mortgaged Property. In all cases where any of the Improvements or the use of the Mortgaged Property will at any time constitute
legal non-conforming structures or uses under applicable legal requirements of any Governmental Authority, the policy referred
to in this Section 6.10 will include “Ordinance and Law Coverage,” with “Loss to the Undamaged Portion of
the Building,” “Demolition Cost” and “Increased Cost of Construction” endorsements, in the amount
of coverage required by Lender and will either include a “Time Element” endorsement or the
business income/rental value Insurance for the Mortgaged Property will be endorsed to
cover income/rent loss arising out of any increased time necessary to repair or rebuild the Mortgaged Property due to the enforcement
of any zoning laws.

 

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		(ii)	Commercial General Liability. Commercial general liability Insurance on an occurrence-based
policy form that insures against legal liability resulting from bodily injury, property damage, personal injury and advertising
injury, and includes contractual liability coverage and any and all claims, including all legal liability (to the extent insurable)
imposed upon Borrower and all Attorneys’ Fees and Costs arising out of or connected with the possession, use, leasing, operation,
maintenance or condition of the Mortgaged Property with a combined limit of not less than $2,000,000 in the aggregate and $1,000,000
per occurrence; umbrella or excess liability coverage with minimum limits in the aggregate and per occurrence of $1,000,000 in
coverage for each story of the Improvements with a maximum required coverage of $8,000,000 (provided, however, that if the Indebtedness
is $3,000,000 or less and the Improvements have 3 stories or fewer, then no umbrella or excess liability coverage is required);
and if the Borrower owns, leases, hires, rents, borrows, uses, or has another use on its behalf a vehicle in conjunction with the
operation of the Mortgaged Property, vehicle liability Insurance of not less than $1,000,000 per occurrence. The maximum per occurrence
deductible or self-insured retention, or combined deductible or self-insured retention, for all coverage required under this Section
6.10(a)(ii), will not exceed $35,000.

 

		(iii)	Business Income/Rental Value. Business income/rental value Insurance for the Mortgaged Property
in an amount equal to at least the estimated gross Rents attributable to the Mortgaged Property for 12 months (18 months when (A)
the Improvements have 5 or more stories, or (B) at all times during which the Indebtedness is equal to or greater than $50,000,000)
based on gross Rents for the immediately preceding year and otherwise sufficient to avoid any co-insurance penalty; coverage will
include a 90-day extended period of indemnity if (X) the Improvements have 5 or more stories, or (Y) the Indebtedness is equal
to or greater than $25,000,000. The waiting period for this coverage will not exceed 72 hours.

 

		(iv)	Flood. If any portion of the Improvements is located within an area
identified by the Federal Emergency Management Agency (or any successor) as a special flood hazard area (“SFHA”),
flood Insurance in an amount equal to the greater of the following:

 

		(A)	The maximum flood Insurance available under the National Flood Insurance Program (“NFIP”)
for each building within a SFHA.

 

		(B)	The sum of the following for each building within a SFHA being insured:

 

		(1)	The Replacement Cost of all areas of the Improvements below grade.

 

		(2)	The Replacement Cost of the bottom two stories (above grade) of the Improvements.

 

		(3)	Any additional coverage dictated by the nature of the Mortgaged Property as determined by Lender in
Lender’s Discretion.

 

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Such coverage
may be purchased through excess carriers if the required coverage exceeds the maximum Insurance available under the NFIP.

 

		(v)	Boiler and Machinery. If the Mortgaged Property contains a central heating, ventilation and
cooling system (“HVAC System”) where steam boilers and/or other pressurized systems are in operation and are
regulated by the Property Jurisdiction, Insurance providing coverage for damage to the HVAC System or other portions of the Mortgaged
Property, if the damage is the result of an explosion of steam boilers, pressure vessels or similar apparatus now or hereafter
installed at the Mortgaged Property, with minimum limits at least equal to the Replacement Cost of the building housing the HVAC
System, including the Replacement Cost of the HVAC System.

 

		(vi)	Terrorism. Insurance coverage required under Section 6.10(a)(i) through (iii) will
cover perils of terrorism and acts of terrorism. Such coverage may be provided through one or more separate policies, which will
be on terms (including amounts) consistent with those required under Section 6.10(a)(i) through (iii).

 

		(vii)	Builder’s All Risk. During any period of Restoration, builder’s “All Risk”
Insurance (including fire and other perils within the scope of a policy known as a “Causes of Loss – Special Form”
or “All Risk” policy) in an amount at least equal to 100% of the sum of the contract or contracts and all materials
to complete the Restoration (as determined by Lender in Lender’s Discretion).

 

		(viii)	Earthquake. If Lender requires earthquake Insurance, the amount of coverage will be equal to
the greater of the following:

 

		(A)	$1,000,000.

 

		(B)	150% of the difference between the following items:

 

		(1)	The Replacement Cost of the Mortgaged Property multiplied by the probable maximum loss for the Mortgaged
Property, as determined by a Site Specific Seismic Report.

 

		(2)	The Replacement Cost of the Mortgaged Property multiplied by the projected loss with a 20% probable
maximum loss.

 

Lender
will not require earthquake Insurance if the probable maximum loss for the Mortgaged Property is less than 20%. If any updated
reports or other documentation are reasonably required by Lender in order to determine whether such additional Insurance is necessary
or prudent, Borrower will pay for all such documentation at its sole cost and expense.

 

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		(ix)	Windstorm. If windstorm and/or windstorm related perils and/or
“named storms” (“Windstorm Coverage”) are excluded from the ”All Risks” policy required
under Section 6.10(a)(i), Borrower will obtain separate coverage for such risks, either through an endorsement or a separate policy.
Windstorm Coverage will be written in an amount equal to 100% of the Replacement Cost. Business
income/rental value Insurance required under Section 6.10(a)(iii) will be in force for all losses covered by Windstorm Coverage.

 

		(x)	Other. Such other Insurance against loss or damage with respect
to the Improvements and Personalty located on the Mortgaged Property as required by Lender (including liquor/dramshop and Mold
Insurance) provided such Insurance is of the kind for risks from time to time customarily insured against and in such minimum coverage
amounts and maximum deductibles as are generally required by institutional lenders for properties
comparable to the Mortgaged Property or which Lender may deem necessary in Lender’s Discretion.

 

All Insurance required pursuant to
Section 6.10(a)(i) and Section 6.10(a)(iii) through (x) will be referred to as “Hazard Insurance.”

 

		(b)	Deductibles. The Insurance required pursuant to Section 6.10(a)(i), (iv), (v), (vi), (vii)
and (ix) will have a per occurrence deductible meeting the following requirements:

 

		(i)	The deductible will not exceed $50,000 if the Replacement Cost of the Mortgaged Property is less than
$10,000,000.

 

		(ii)	The deductible will not exceed $75,000 if the Replacement
Cost of the Mortgaged Property is equal to or greater than $10,000,000.

 

		(iii)	For Windstorm Coverage the deductible will not exceed 5% of the Replacement
Cost if the Mortgaged Property is located (1) in Florida, or (2) within 50 miles of the coast of any East Coast or Gulf
Coast state.

 

		(iv)	For flood insurance provided under the NFIP, the deductible will comply with the NFIP deductible for
the type of improvement insured.

 

		(c)	Payment of Premiums. All Hazard Insurance premiums and premiums for other Insurance required
under this Section 6.10 will be paid in the manner provided in Article IV, unless Lender has designated in writing another
method of payment.

 

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		(d)	Policy Requirements. All policies will be in a form approved by Lender. All policies of Hazard
Insurance will include a standard non-contributing, non-reporting mortgagee clause in favor of, and in a form approved by, Lender.
All policies for general liability Insurance will contain a standard additional insured provision, in favor of, and in a form approved
by Lender. If any policy referred to in this Section 6.10 contains a coinsurance clause, such coinsurance clause will be offset
by an agreed amount endorsement in an amount not less than the Replacement Cost. All Insurance policies and renewals of Insurance
policies required by this Section 6.10 will be for such periods as Lender may from time to time require. Unless required otherwise
by state law, all policies of Hazard Insurance will provide that the insurer will notify the named mortgagee in writing at least
10 days before the cancelation of the policy for nonpayment of the premium or nonrenewal and at least 30 days before cancelation
for any other reason.

 

		(e)	Evidence of Insurance; Renewals. Borrower will deliver to Lender a legible copy of each Insurance
policy (or duplicate original), and Borrower will promptly deliver to Lender a copy of all renewal and other notices received by
Borrower with respect to the policies. Borrower will ensure that the Mortgaged Property is continuously covered by the required
Insurance policies and will deliver to Lender, at least 15 days prior to the expiration of each Insurance policy, evidence acceptable
to Lender in Lender’s Discretion that each policy has been renewed. If the evidence of a renewal does not include a legible
copy of the renewal policy (or duplicate original), Borrower will deliver a legible copy of such renewal policy (or duplicate original)
in a form satisfactory to Lender in Lender’s Discretion prior to the earlier of (i) 60 days after the expiration
date of the original policy, or (ii) the date of any Notice to Lender under Section 6.10(i).

 

		(f)	Insurance Company Rating Requirements. Borrower will maintain the Insurance coverage described
in this Section 6.10 with companies acceptable to Lender having the following ratings:

 

		(i)	A rated claims paying ability rating of at least “A-” for financial strength or its equivalent
by A.M. Best Company.

 

		(ii)	A financial size rating or its equivalent by A.M. Best Company of at least one of the following:

 

		(A)	“VII” for companies with an Aggregate Carrier Exposure of $5,000,000 or less.

 

		(B)	“VIII” for companies with an Aggregate Carrier Exposure greater than $5,000,000 and less
than or equal to $25,000,000.

 

		(C)	“IX” for companies with an Aggregate Carrier Exposure greater than $25,000,000 and a rated
claims paying ability of at least one of the following:

 

		(1)	“A-” or its equivalent by Fitch, Inc.

 

		(2)	“A-” or its equivalent by Standard & Poor’s Ratings Services, a division of
The McGraw-Hill Companies, Inc.

 

		(3)	“A3” or its equivalent by Moody’s Investors Service, Inc.

 

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All insurers providing
Insurance required by this Loan Agreement will be authorized to issue Insurance in the Property Jurisdiction.

 

		(g)	Compliance With Insurance Requirements. Borrower will comply with all Insurance requirements
and will not permit any condition to exist on the Mortgaged Property that would invalidate any part of any Insurance coverage required
under this Loan Agreement.

 

		(h)	Blanket Insurance; Master Program. Borrower may provide Insurance coverage described in this
Section 6.10 under a blanket insurance policy or master program which provides one “per occurrence” (per peril)
limit of coverage for two or more properties (“Blanket Insurance Policy”) provided that each of the following
conditions is met:

 

		(i)	The Blanket Insurance Policy is acceptable to Lender in Lender’s Discretion.

 

		(ii)	The coverages under the Blanket Insurance Policy meet the requirements of this Section 6.10.

 

		(iii)	Borrower will provide evidence acceptable to Lender in Lender’s Discretion that the per occurrence
limit of the Insurance coverages provided by the Blanket Insurance Policy will be no less than the Replacement Cost of the property
with the largest replacement cost exposure covered by the Blanket Insurance Policy unless a higher amount is required by Lender
in Lender’s Discretion.

 

		(iv)	The maximum per occurrence deductible for the Blanket Insurance Policy providing property damage coverage
and/or Windstorm Coverage is as follows:

 

	 	Aggregate Replacement
 Cost of the covered
 properties	 	Maximum per occurrence
 deductible
	 	$5,000,000 or less	 	$50,000
	 	Greater than $5,000,000 but less than or equal to $7,500,000	 	$75,000
	 	Greater than $7,500,000	 	1% of the Replacement Cost of the covered properties (to a maximum of $250,000)

 

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However, if the Blanket Insurance
Policy provides Windstorm Coverage and the Mortgaged Property is located (A) in Florida, or (B) within
50 miles of the coast of any East Coast or Gulf Coast state, then the maximum per occurrence deductible for Windstorm Coverage
will not exceed 5% of the aggregate Replacement Cost of the covered properties. 

 

		(v)	The minimum umbrella or excess liability coverage required if the Blanket Insurance Policy provides
commercial general liability Insurance is as follows:

 

	Number of
 properties covered
 by the policy	 	Number of 
 stories in any of
 the covered
 properties	 	Minimum umbrella or
 excess liability	 
	2 to 3	 	3 or fewer	 	$	3,000,000	 
	2 to 3	 	More than 3	 	$	10,000,000	 
	4 to 5	 	3 or fewer	 	$	5,000,000	 
	4 to 5	 	More than 3	 	$	12,000,000	 
	6 to 10	 	3 or fewer	 	$	7,000,000	 
	6 to 10	 	More than 3	 	$	15,000,000	 
	11 to 19	 	3 or fewer	 	$	9,000,000	 
	11 to 19	 	More than 3	 	$	20,000,000	 
	20 or more	 	3 or fewer	 	$	15,000,000	 
	20 or more	 	More than 3	 	$	30,000,000	 

 

		(i)	Obligations Upon Casualty; Proof of Loss.

 

		(i)	In the event of loss, Borrower will give immediate written notice to the Insurance carrier and to
Lender.

 

		(ii)	Borrower authorizes and appoints Lender as attorney in fact for Borrower to make proof of loss, to
adjust and compromise any claims under policies of Hazard Insurance, to appear in and prosecute any action arising from such Hazard
Insurance policies, to collect and receive the proceeds of Hazard Insurance, to hold the proceeds of Hazard Insurance, and to deduct
from such proceeds Lender’s expenses incurred in the collection of such proceeds. This power of attorney is coupled with
an interest and therefore is irrevocable. However, nothing contained in this Section 6.10 will require Lender to incur any
expense or take any action. Lender may, at Lender’s option, take one of the following actions:

 

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		(A)	Require a “repair or replacement” settlement, in which case the proceeds will be used
to reimburse Borrower for the cost of restoring and repairing the Mortgaged Property to the equivalent of its original condition
or to a condition approved by Lender (“Restoration”). If Lender determines to require a repair or replacement
settlement and to apply Insurance proceeds to Restoration, Lender will apply the proceeds in accordance with Lender’s then-current
policies relating to the Restoration of casualty damage on similar multifamily properties.

 

		(B)	Require an “actual cash value” settlement in which case the proceeds may be applied to
the payment of the Indebtedness, whether or not then due.

 

		(iii)	Subject to Section 6.10(j), Borrower may take the following actions:

 

		(A)	If a casualty results in damage to the Mortgaged Property for which the cost of Repairs will be less
than the Borrower Proof of Loss Threshold, Borrower will have the sole right to make proof of loss, adjust and compromise the claim
and collect and receive any proceeds directly without the approval or prior consent of Lender so long as the Insurance proceeds
are used solely for the Restoration of the Mortgaged Property.

 

		(B)	If a casualty results in damage to the Mortgaged Property for which the cost of Repairs will be more
than the Borrower Proof of Loss Threshold, but less than the Borrower Proof of Loss Maximum, Borrower is authorized to make proof
of loss and adjust and compromise the claim without the prior consent of Lender, and Lender will hold the applicable Insurance
proceeds to be used to reimburse Borrower for the cost of Restoration of the Mortgaged Property and will not apply such proceeds
to the payment of the Indebtedness.

 

		(j)	Right to Apply Insurance Proceeds to Indebtedness. Lender will have the right to apply Insurance
proceeds to the payment of the Indebtedness if Lender determines, in Lender’s Discretion, that any of the following conditions
are met:

 

		(i)	An Event of Default (or any event, which, with the giving of Notice or the passage of time, or both,
would constitute an Event of Default) has occurred and is continuing.

 

		(ii)	There will not be sufficient funds from Insurance proceeds, anticipated contributions of Borrower
of its own funds or other sources acceptable to Lender to complete the Restoration.

 

		(iii)	The rental income from the Mortgaged Property after completion of the Restoration will not be sufficient
to meet all operating costs and other expenses, deposits to Reserve Funds and Loan repayment obligations relating to the Mortgaged
Property.

 

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		(iv)	The Restoration will not be completed by the earlier of (A) at least one year before the Maturity
Date (or 6 months before the Maturity Date if re-leasing of the Mortgaged Property will be completed within such 6 month
period) or (B) the expiration of the business interruption coverage.

 

		(v)	The Restoration will not be completed within one year after the date of the loss or casualty.

 

		(vi)	The casualty involved an actual or constructive loss of more than 30% of the fair market value of
the Mortgaged Property, and rendered untenantable more than 30% of the residential units of the Mortgaged Property.

 

		(vii)	After completion of the Restoration the fair market value of the Mortgaged Property is expected to
be less than the fair market value of the Mortgaged Property immediately prior to such casualty (assuming the affected portion
of the Mortgaged Property is relet within a reasonable period after the date of such casualty).

 

		(viii)	Leases covering less than 35% of the residential units of the Mortgaged Property will remain in full
force and effect during and after the completion of Restoration.

 

		(k)	Succession to Insurance Policies. If the Mortgaged Property is sold at a foreclosure sale or
Lender acquires title to the Mortgaged Property, Lender will automatically succeed to all rights of Borrower in and to any Insurance
policies and unearned Insurance premiums and in and to the proceeds resulting from any damage to the Mortgaged Property prior to
such sale or acquisition.

 

		(l)	Payment of Installments After Application of Insurance Proceeds. Unless Lender otherwise agrees
in writing, any application of any Insurance proceeds to the Indebtedness will not extend or postpone the due date of any monthly
installments referred to in the Note, Article IV of this Loan Agreement or change the amount of such installments.

 

		(m)	Assignment of Insurance Proceeds. Borrower agrees to execute such further evidence of assignment
of any Insurance proceeds as Lender may require.

 

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		6.11	Condemnation. 

 

		(a)	Rights Generally. Borrower will promptly notify Lender in writing of any action or proceeding
or notice relating to any proposed or actual condemnation or other taking, or conveyance in lieu thereof, of all or any part of
the Mortgaged Property, whether direct or indirect (“Condemnation”). Borrower will appear in and prosecute or
defend any action or proceeding relating to any Condemnation unless otherwise directed by Lender in writing. Borrower authorizes
and appoints Lender as attorney in fact for Borrower to commence, appear in and prosecute, in Lender’s or Borrower’s
name, any action or proceeding relating to any Condemnation and to settle or compromise any claim in connection with any Condemnation,
after consultation with Borrower and consistent with commercially reasonable standards of a prudent lender. This power of attorney
is coupled with an interest and therefore is irrevocable. However, nothing contained in this Section 6.11(a) will require
Lender to incur any expense or take any action. Borrower transfers and assigns to Lender all right, title and interest of Borrower
in and to any award or payment with respect to (i) any Condemnation, or any conveyance in lieu of Condemnation, and (ii) any damage
to the Mortgaged Property caused by governmental action that does not result in a Condemnation.

 

		(b)	Application of Award. Lender may hold such awards or proceeds and apply such awards
or proceeds, after the deduction of Lender’s expenses incurred in the collection of such amounts (including Attorneys’
Fees and Costs) at Lender’s option, to the Restoration or repair of the Mortgaged Property or to the payment of the Indebtedness,
with the balance, if any, to Borrower. Unless Lender otherwise agrees in writing, any application of any awards or proceeds to
the Indebtedness will not extend or postpone the due date of any monthly installments referred to in the Note or Article IV of
this Loan Agreement, or change the amount of such installments. Borrower agrees to execute such further evidence of assignment
of any Condemnation awards or proceeds as Lender may require.

 

		(c)	Borrower’s Right to Condemnation Proceeds. Notwithstanding any provision to the contrary
in this Section 6.11, but subject to Section 6.11(e), in the event of a partial Condemnation of the Mortgaged Property,
as long as no Event of Default, or any event which, with the giving of Notice or the passage of time, or both, would constitute
an Event of Default, has occurred and is continuing, in the event of a partial Condemnation resulting in proceeds or awards in
the amount of less than $100,000, Borrower will have the sole right to make proof of loss, adjust and compromise the claim and
collect and receive any proceeds directly without the approval or prior consent of Lender so long as the proceeds or awards are
used solely for the Restoration of the Mortgaged Property.

 

		(d)	Right to Apply Condemnation Proceeds to Indebtedness. In the event of a partial Condemnation
of the Mortgaged Property resulting in proceeds or awards in the amount of $100,000 or more and subject to Section 6.11(e),
Lender will have the right to exercise its option to apply Condemnation proceeds to the payment of the Indebtedness only if Lender,
in Lender’s Discretion, determines that at least one of the following conditions is met:

 

		(i)	An Event of Default (or any event, which, with the giving of Notice or the passage of time, or both,
would constitute an Event of Default) has occurred and is continuing.

 

		(ii)	There will not be sufficient funds from Condemnation proceeds, anticipated contributions of Borrower
of its own funds or other sources acceptable to Lender to complete the Restoration.

 

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		(iii)	The rental income from the Mortgaged Property after completion of the Restoration will not be sufficient
to meet all operating costs and other expenses, deposits to Reserve Funds and Loan repayment obligations relating to the Mortgaged
Property.

 

		(iv)	The Restoration will not be completed at least one year before the Maturity Date (or 6 months
before the Maturity Date if re-leasing of the Mortgaged Property will be completed within such 6 month period).

 

		(v)	The Restoration will not be completed within one year after the date of the Condemnation.

 

		(vi)	The Condemnation involved an actual or constructive loss of more than 15% of the fair market value
of the Mortgaged Property, and rendered untenantable more than 25% of the residential units of the Mortgaged Property.

 

		(vii)	After Restoration the fair market value of the Mortgaged Property is expected to be less than the
fair market value of the Mortgaged Property immediately prior to the Condemnation (assuming the affected portion of the Mortgaged
Property is relet within a reasonable period after the date of the Condemnation).

 

		(viii)	Leases covering less than 35% of residential units of the Mortgaged Property will remain in full force
and effect during and after the completion of Restoration.

 

		(e)	Right to Apply Condemnation Proceeds in Connection with a Partial Release. Notwithstanding
anything to the contrary set forth in this Loan Agreement, including this Section 6.11, for so long as the Loan or any portion
thereof is included in a Securitization, if any portion of the Mortgaged Property is released from the Lien of the Loan in connection
with a Condemnation and if the ratio of (i) the unpaid principal balance of the Loan to (ii) the value of the Mortgaged Property
(taking into account only the related land and buildings and not any personal property or going-concern value), as determined by
Lender in its sole and absolute discretion based on a commercially reasonable valuation method permitted in connection with a Securitization,
is greater than 125% immediately after such Condemnation and before any Restoration or repair of the Mortgaged Property (but taking
into account any planned Restoration or repair of the Mortgaged Property as if such planned Restoration or repair were completed)
Lender will apply any net proceeds or awards from such Condemnation, in full, to the payment of the principal of the Indebtedness
whether or not then due and payable, unless Lender will have received an opinion of counsel that a different application of such
net proceeds or awards will not cause such Securitization to fail to meet applicable federal income tax qualification requirements
or subject such Securitization to any tax.

 

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		(f)	Succession to Condemnation Proceeds. If the Mortgaged Property is sold at a foreclosure sale
or Lender acquires title to the Mortgaged Property, Lender will automatically succeed to all rights of Borrower in and to any Condemnation
proceeds and awards prior to such sale or acquisition.

 

		6.12	Environmental Hazards. 

 

		(a)	Prohibited Activities and Conditions. Except for matters described in this Section 6.12,
Borrower will not cause or permit Prohibited Activities or Conditions. Borrower will comply with all Hazardous Materials Laws applicable
to the Mortgaged Property. Without limiting the generality of the previous sentence, Borrower will (i) obtain and maintain all
Environmental Permits required by Hazardous Materials Laws and comply with all conditions of such Environmental Permits, (ii) cooperate
with any inquiry by any Governmental Authority, and (iii) comply with any governmental or judicial order that arises from any alleged
Prohibited Activity or Condition.

 

		(b)	Employees, Tenants and Contractors. Borrower will take all commercially reasonable actions
(including the inclusion of appropriate provisions in any Leases executed after the date of this Loan Agreement) to prevent its
employees, agents and contractors, and all tenants and other occupants from causing or permitting any Prohibited Activities or
Conditions. Borrower will 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)	O&M Programs. As required by Lender, Borrower will also have established a written operations
and maintenance program with respect to certain Hazardous Materials. Each such operations and maintenance program and any additional
or revised operations and maintenance programs established for the Mortgaged Property pursuant to this Section 6.12 must be
approved by Lender and will be referred to in this Loan Agreement as an “O&M Program.” Borrower will comply
in a timely manner with, and cause all employees, agents, and contractors of Borrower and any other Persons present on the Mortgaged
Property to comply with each O&M Program. Borrower will pay all costs of performance of Borrower’s obligations under
any O&M Program, and Lender’s out of pocket costs incurred in connection with the monitoring and review of each O&M
Program must be paid by Borrower upon demand by Lender. Any such out-of-pocket costs of Lender that Borrower fails to pay promptly
will become an additional part of the Indebtedness as provided in Section 9.02.

 

		(d)	Notice to Lender. Borrower will promptly give Notice to Lender upon the occurrence of any of
the following events:

 

		(i)	Borrower’s discovery of any Prohibited Activity or Condition.

 

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		(ii)	Borrower’s receipt of or knowledge of any written complaint, order, notice of violation or other
communication from any tenant, Property Manager, 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.

 

		(iii)	Borrower’s breach of any of its obligations under this Section 6.12.

 

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

 

		(e)	Environmental Inspections, Tests and Audits. Borrower will pay promptly the costs of any environmental
inspections, tests or audits, a purpose of which is to identify the extent or cause of or potential for a Prohibited Activity or
Condition (“Environmental Inspections”), required by Lender in connection with any foreclosure or deed in lieu
of foreclosure, or as a condition of Lender’s consent to any Transfer under Article VII, or required by Lender following
a reasonable determination by Lender that Prohibited Activities or Conditions may exist. Any such costs incurred by Lender (including
Attorneys’ Fees and Costs and the costs of technical consultants whether incurred in connection with any judicial or administrative
process or otherwise) that Borrower fails to pay promptly will become an additional part of the Indebtedness as provided in Section 9.02.
As long as (i) no Event of Default has occurred and is continuing, (ii) Borrower has actually paid for or reimbursed Lender for
all costs of any such Environmental Inspections performed or required by Lender, and (iii) Lender is not prohibited by law, contract
or otherwise from doing so, Lender will make available to Borrower, without representation of any kind, copies of Environmental
Inspections prepared by third parties and delivered to Lender. Lender reserves the right, and Borrower 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 or for Lender 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 made by or for Lender.
Borrower acknowledges that Lender cannot control or otherwise ensure 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 that a party may bid at such sale. Borrower agrees that Lender will have no liability
whatsoever as a result of delivering the results of any Environmental Inspections made by or for Lender to any third party, and
Borrower releases and forever discharges Lender from any and all claims, damages or causes of action arising out of, connected
with or incidental to the results of the delivery of any Environmental Inspections made by or for Lender.

 

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		(f)	Remedial Work. If any investigation, site monitoring, containment, clean-up, Restoration or
other remedial work (“Remedial Work”) is necessary to comply with any Hazardous Materials Law or order of any
Governmental Authority that has or acquires jurisdiction over the Mortgaged Property or the use, operation or improvement of the
Mortgaged Property, or 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 will, by the earlier of (i) the applicable deadline required by Hazardous
Materials Law or (ii) 30 days after Notice from Lender demanding such action, begin performing the Remedial Work, and thereafter
diligently prosecute it to completion, and must in any event complete the work by the time required by applicable Hazardous Materials
Law. 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 will reimburse Lender on demand for the cost of doing so. Any reimbursement
due from Borrower to Lender will become part of the Indebtedness as provided in Section 9.02.

 

		6.13	Single Purpose Entity Requirements.

 

		(a)	Single Purpose Entity Requirements. Until the Indebtedness is paid in full, each Borrower and
any SPE Equity Owner will remain a “Single Purpose Entity,” which means at all times since its formation and
thereafter it will satisfy each of the following conditions:

 

		(i)	It will not engage in any business or activity, other than the ownership, operation and maintenance
of the Mortgaged Property and activities incidental thereto.

 

		(ii)	It will not acquire, own, hold, lease, operate, manage, maintain, develop or improve any assets other
than the Mortgaged Property and such Personalty as may be necessary for the operation of the Mortgaged Property and will conduct
and operate its business as presently conducted and operated.

 

		(iii)	It will preserve its existence as an entity duly organized, validly existing and in good standing
(if applicable) under the laws of the jurisdiction of its formation or organization and will do all things necessary to observe
organizational formalities.

 

		(iv)	It will not merge or consolidate with any other Person.

 

		(v)	It will not take any action to dissolve, wind-up, terminate or liquidate in whole or in part; to sell,
transfer or otherwise dispose of all or substantially all of its assets; to change its legal structure; transfer or permit the
direct or indirect transfer of any partnership, membership or other equity interests, as applicable, other than Transfers permitted
under this Loan Agreement; issue additional partnership, membership or other equity interests, as applicable, or seek to accomplish
any of the foregoing.

 

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		(vi)	It will not, without the prior unanimous written consent of all of Borrower’s partners, members,
or shareholders, as applicable, and, if applicable, the prior unanimous written consent of 100% of the members of the board of
directors or of the board of Managers of Borrower or the SPE Equity Owner, take any of the following actions:

 

		(A)	File any insolvency, or reorganization case or proceeding, to institute proceedings to have Borrower
or any SPE Equity Owner be adjudicated bankrupt or insolvent.

 

		(B)	Institute proceedings under any applicable insolvency law.

 

		(C)	Seek any relief under any law relating to relief from debts or the protection of debtors.

 

		(D)	Consent to the filing or institution of bankruptcy or insolvency proceedings against Borrower or any
SPE Equity Owner.

 

		(E)	File a petition seeking, or consent to, reorganization or relief with respect to Borrower or any SPE
Equity Owner under any applicable federal or state law relating to bankruptcy or insolvency.

 

		(F)	Seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian,
or any similar official for Borrower or a substantial part of its property or for any SPE Equity Owner or a substantial part of
its property.

 

		(G)	Make any assignment for the benefit of creditors of Borrower or any SPE Equity Owner.

 

		(H)	Admit in writing Borrower’s or any SPE Equity Owner’s inability to pay its debts generally
as they become due.

 

		(I)	Take action in furtherance of any of the foregoing.

 

		(vii)	It will not amend or restate its organizational documents if such change would cause the provisions
set forth in those organizational documents not to comply with the requirements set forth in this Section 6.13.

 

		(viii)	It will not own any subsidiary or make any investment in, any other Person.

 

		(ix)	It will not commingle its assets with the assets of any other Person and will hold all of its assets
in its own name.

 

		(x)	It will not incur any debt, secured or unsecured, direct or contingent (including guaranteeing any
obligation), other than, (A) the Indebtedness (and any further indebtedness as described in Section 11.11 with regard to Supplemental
Instruments), and (B) customary unsecured trade payables incurred in the ordinary course of owning and operating the Mortgaged
Property provided the same are not evidenced by a promissory note, do not exceed, in the aggregate, at any time a maximum amount
of 2% of the original principal amount of the Indebtedness and are paid within 60 days of the date incurred.

  

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		(xi)	It will maintain its records, books of account, bank accounts, financial statements, accounting records
and other entity documents separate and apart from those of any other Person and will not list its assets as assets on the financial
statement of any other Person; provided, however, that Borrower’s assets may be included in a consolidated financial statement
of its Affiliate provided that (A) appropriate notation will be made on such consolidated financial statements to indicate the
separateness of Borrower from such Affiliate and to indicate that Borrower’s assets and credit are not available to satisfy
the debts and other obligations of such Affiliate or any other Person and (B) such assets will also be listed on Borrower’s
own separate balance sheet.

 

		(xii)	Except for capital contributions or capital distributions permitted under the terms and conditions
of its organizational documents, it will only enter into any contract or agreement with any general partner, member, shareholder,
principal or Affiliate of Borrower or any Guarantor, or any general partner, member, principal or Affiliate thereof, upon terms
and conditions that are commercially reasonable and substantially similar to those that would be available on an arm’s-length
basis with third parties.

 

		(xiii)	It will not maintain its assets in such a manner that will be costly or difficult to segregate, ascertain
or identify its individual assets from those of any other Person.

 

		(xiv)	It will not assume or guaranty (excluding any guaranty that has been executed and delivered in connection
with the Note) the debts or obligations of any other Person, hold itself out to be responsible for the debts of another Person,
pledge its assets to secure the obligations of any other Person or otherwise pledge its assets for the benefit of any other Person,
or hold out its credit as being available to satisfy the obligations of any other Person.

 

		(xv)	It will not make or permit to remain outstanding any loans or advances to any other Person except
for those investments permitted under the Loan Documents and will not buy or hold evidence of indebtedness issued by any other
Person (other than cash or investment-grade securities).

 

		(xvi)	It will file its own tax returns separate from those of any other Person, except to the extent that
Borrower is treated as a “disregarded entity” for tax purposes and is not required to file tax returns under applicable
law, and will pay any taxes required to be paid under applicable law.

  

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		(xvii)	It will hold itself out to the public as a legal entity separate and distinct from any other Person
and conduct its business solely in its own name, will correct any known misunderstanding regarding its separate identity and will
not identify itself or any of its Affiliates as a division or department of any other Person.

 

		(xviii)	It will maintain adequate capital for the normal obligations reasonably foreseeable in a business
of its size and character and in light of its contemplated business operations and will pay its debts and liabilities from its
own assets as the same become due.

 

		(xix)	It will allocate fairly and reasonably shared expenses with Affiliates (including shared office space)
and use separate stationery, invoices and checks bearing its own name.

 

		(xx)	It will pay (or cause the Property Manager to pay on behalf of Borrower from Borrower’s funds)
its own liabilities (including salaries of its own employees) from its own funds.

 

		(xxi)	It will not acquire obligations or securities of its partners, members, shareholders, or Affiliates,
as applicable.

 

		(xxii)	Except as contemplated or permitted by the property management agreement with respect to the Property
Manager, it will not permit any Affiliate or constituent party independent access to its bank accounts.

 

		(xxiii)	It will maintain a sufficient number of employees (if any) in light of its contemplated business operations
and pay the salaries of its own employees, if any, only from its own funds.

 

		(xxiv)	If such entity is a single member limited liability company, such entity will satisfy each of the
following conditions:

 

		(A)	Be formed and organized under Delaware law.

 

		(B)	Have either one springing member that is a corporation whose stock is 100% owned by the sole member
of Borrower and that satisfies the requirements for a corporate springing member set forth below in this Section or two springing
members who are natural persons.

  

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		(C)	Otherwise comply with all Rating Agencies criteria for single member limited liability companies (including
the delivery of Delaware single member limited liability company opinions acceptable in all respects to Lender and to the Rating
Agencies). If the springing member is a corporation, such springing member will at all times comply, and will cause Borrower or
SPE Equity Owner (as applicable) to comply, with each of the representations, warranties and covenants contained in Section 6.13
as if such representation, warranty or covenant were made directly by such corporation. If there is more than one springing member,
only one springing member will be the sole member of Borrower or SPE Equity Owner (as applicable) at any one time, and the second
springing member will become the sole member only upon the first springing member ceasing to be a member.

 

		(D)	At all times Borrower or SPE Equity Owner (as applicable) will have one and only one member.

 

		(xxv)	If such entity is a single member limited liability company that is board-managed, such entity will
have a board of Managers separate from that of Guarantor and any other Person and will cause its board of Managers to keep minutes
of board meetings and actions and observe all other Delaware limited liability company required formalities.

 

		(xxvi)	If an SPE Equity Owner is required pursuant to this Loan Agreement, if Borrower is (A) a limited liability
company with more than one member, then Borrower has and will have at least one member that is an SPE Equity Owner that has satisfied
and will satisfy the requirements of Section 6.13(b) and such member is its managing member, or (B) a limited partnership,
then all of its general partners are SPE Equity Owners that have satisfied and will satisfy the requirements set forth in Section 6.13(b).

 

		(b)	SPE Equity Owner Requirements. The SPE Equity Owner, if applicable, will at all times since
its formation and thereafter comply in its own right (subject to the modifications set forth below), and will cause Borrower to
comply, with each of the requirements of a Single Purpose Entity. Upon the withdrawal or the disassociation of an SPE Equity Owner
from Borrower, Borrower will immediately appoint a new SPE Equity Owner, whose organizational documents are substantially similar
to those of the withdrawn or disassociated SPE Equity Owner, and deliver a new nonconsolidation opinion to the Rating Agencies
and Lender in form and substance satisfactory to Lender and to the Rating Agencies (unless the opinion is waived by the Rating
Agencies), with regard to nonconsolidation by a bankruptcy court of the assets of each of Borrower and SPE Equity Owner with those
of its Affiliates.

 

		(i)	With respect to Section 6.13(a)(i), the SPE Equity Owner will not engage in any business or activity
other than being the sole managing member or general partner, as the case may be, of Borrower and owning at least 0.5% equity interest
in Borrower.

 

		(ii)	With respect to Section 6.13(a)(ii), the SPE Equity Owner has not and will not acquire or own
any assets other than its equity interest in Borrower and personal property related thereto.

  

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		(iii)	With respect to Section 6.13(a)(viii), the SPE Equity Owner will not own any subsidiary or make
any investment in any other Person, except for Borrower.

 

		(iv)	With respect to Section 6.13(a)(x), the SPE Equity Owner has not and will not incur any debt, secured
or unsecured, direct or contingent (including guaranteeing any obligation), other than (A) customary unsecured payables incurred
in the ordinary course of owning Borrower provided the same are not evidenced by a promissory note, do not exceed, in the aggregate,
at any time a maximum amount of $10,000 and are paid within 60 days of the date incurred and (B) in its capacity as general
partner of Borrower (if applicable).

 

		(v)	With respect to Section 6.13(a)(xiv), the SPE Equity Owner will not assume or guaranty the debts
or obligations of any other Person, hold itself out to be responsible for the debts of another Person, pledge its assets to secure
the obligations of any other Person or otherwise pledge its assets for the benefit of any other Person, or hold out its credit
as being available to satisfy the obligations of any other Person, except for in its capacity as general partner of Borrower (if
applicable).

 

		(c)	Effect of Transfer on Special Purpose Entity Requirements. Notwithstanding anything to the
contrary in this Loan Agreement, no Transfer will be permitted under Article VII unless the provisions of this Section 6.13
are satisfied at all times.

 

		6.14	Repairs and Capital Replacements.

 

		(a)	Completion of Repairs. Borrower will commence any Repairs as soon as practicable after the
date of this Loan Agreement and will diligently proceed with and complete such Repairs on or before the Completion Date. All Repairs
and Capital Replacements will be completed in a good and workmanlike manner, with suitable materials, and in accordance with good
building practices and all applicable laws, ordinances, rules, regulations, building setback lines and restrictions applicable
to the Mortgaged Property. Borrower agrees to cause the replacement of any material or work that is defective, unworkmanlike or
that does not comply with the requirements of this Loan Agreement, as determined by Lender.

 

		(b)	Purchases. Without the prior written consent of Lender, no materials, machinery, equipment,
fixtures or any other part of the Repairs or Capital Replacements will be purchased or installed under conditional sale contracts
or lease agreements, or any other arrangement wherein title to such Repairs or Capital Replacements is retained or subjected to
a purchase money security interest, or the right is reserved or accrues to anyone to remove or repossess any such Repairs or Capital
Replacements, or to consider them as personal property.

  

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		(c)	Lien Protection. Borrower will promptly pay or cause to be paid, when due, all costs, charges
and expenses incurred in connection with the construction and completion of the Repairs or Capital Replacements, and will keep
the Mortgaged Property free and clear of any and all Liens other than the Lien of the Security Instrument and any other junior
Lien to which Lender has consented.

 

		(d)	Adverse Claims. Borrower will promptly advise Lender in writing of any litigation, Liens or
claims affecting the Mortgaged Property and of all complaints and charges made by any Governmental Authority that may delay or
adversely affect the Repairs or Capital Replacements.

 

		6.15	Residential Leases Affecting the Mortgaged Property. 

 

		(a)	Borrower will, promptly upon Lender’s request, deliver to Lender an executed copy of each residential
Lease then in effect. All Leases for residential dwelling units will be on forms acceptable to Lender, will be for initial terms
of at least 6 months and not more than 2 years, and will not include options to purchase.

 

		(b)	If Borrower is a cooperative housing corporation or association, notwithstanding anything to the contrary
contained in this Loan Agreement, so long as Borrower remains a cooperative housing corporation or association and is not in breach
of any covenant of this Loan Agreement, Lender consents to each of the following:

 

		(i)	The execution of Leases for terms in excess of 2 years to a tenant shareholder of Borrower, so
long as such Leases, including proprietary Leases, are and will remain subordinate to the Lien of the Security Instrument.

 

		(ii)	The surrender or termination of such Leases where the surrendered or terminated Lease is immediately
replaced or where Borrower makes its best efforts to secure such immediate replacement by a newly-executed Lease of the same apartment
to a tenant shareholder of Borrower. However, no consent is given by Lender to any execution, surrender, termination or assignment
of a Lease under terms that would waive or reduce the obligation of the resulting tenant shareholder under such Lease to pay cooperative
assessments in full when due or the obligation of the former tenant shareholder to pay any unpaid portion of such assessments.

 

		6.16	Litigation; Government Proceedings. Borrower will give prompt Notice to Lender of any litigation
or governmental proceedings pending or, to the best of Borrower’s knowledge, threatened in writing against Borrower which
might have a Material Adverse Effect.

 

		6.17	Further Assurances and Estoppel Certificates; Lender’s Expenses. Within 10 days
after a request from Lender, in Lender’s Discretion, Borrower will take each of the following actions:

  

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		(a)	Deliver to Lender a written statement, signed and acknowledged by Borrower, certifying to Lender or
any Person designated by Lender, as of the date of such statement, (i) that the Loan Documents are unmodified and in full force
and effect (or, if there have been modifications, that the Loan Documents are in full force and effect as modified and setting
forth such modifications), (ii) the unpaid principal balance of the Note, (iii) the date to which interest under the Note has been
paid, (iv) that Borrower is not in default in paying the Indebtedness or in performing or observing any of the covenants or agreements
contained in this Loan Agreement or any of the other Loan Documents (or, if Borrower is in default, describing such default in
reasonable detail), (v) whether there are any then-existing setoffs or defenses known to Borrower against the enforcement of any
right or remedy of Lender under the Loan Documents, and (vi) any additional facts requested by Lender.

 

		(b)	Execute, acknowledge and/or deliver, at its sole cost and expense, all further acts, deeds, conveyances,
assignments, estoppel certificates, financing statements or amendments, transfers and assurances as Lender may require from time
to time in order to better assure, grant and convey to Lender the rights intended to be granted, now or in the future, to Lender
under this Loan Agreement and the Loan Documents or in connection with Lender’s consent rights under Article VII.

 

Borrower acknowledges
and agrees that, in connection with each request by Borrower under this Loan Agreement or any Loan Document, Borrower will pay
all reasonable Attorneys’ Fees and Costs and expenses incurred by Lender and Loan Servicer, including any fees charged by
the Rating Agencies, regardless of whether the matter is approved, denied or withdrawn. Any amounts payable by Borrower under this
Loan Agreement will be deemed a part of the Indebtedness, will be secured by the Security Instrument and will bear interest at
the Default Rate if not fully paid within 10 days of written demand for payment.

 

		6.18	Cap Collateral. Reserved.

 

		6.19	Ground Lease. Reserved.

 

		6.20	ERISA Requirements. 

 

		(a)	Borrower will not engage in any transaction which would cause an obligation, or action taken or to
be taken under this Loan Agreement (or the exercise by Lender of any of its rights under the Note, this Loan Agreement or any of
the other Loan Documents) to be a non-exempt (under a statutory or administrative class exemption) prohibited transaction under
ERISA.

 

		(b)	Borrower will deliver to Lender such certifications or other evidence from time to time throughout
the term of this Loan Agreement, as requested by Lender in Lender’s Discretion, that (i) Borrower is not an “employee
benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental plan”
within the meaning of Section 3(32) of ERISA, (ii) Borrower is not subject to state statutes regulating investments and fiduciary
obligations with respect to governmental plans, and (iii) one or more of the following circumstances is true:

  

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		(A)	Equity interests in Borrower are publicly offered securities within the meaning of 29 C.F.R. Section 2510.3-101(b)(2),
as amended from time to time or any successor provision.

 

		(B)	Less than 25% of each outstanding class of equity interests in Borrower are held by “benefit
plan investors” within the meaning of Section 3(42) of ERISA, as amended from time to time or any successor provision.

 

		(C)	Borrower qualifies as an “operating company” or a “real estate operating company”
within the meaning of 29 C.F.R. Section 2510.3-101(c), as amended from time to time or any successor provision, or within
the meaning of 29 C.F.R. Section 2510.3-101(e) as an investment company registered under the Investment Company Act of 1940.

 

		ARTICLE VII	TRANSFERS OF THE MORTGAGED PROPERTY OR INTERESTS IN BORROWER.

 

Upon the occurrence of a Transfer prohibited
by or requiring Lender’s approval (if applicable) under this Article VII, Lender may, in Lender’s Discretion, by Notice
to Borrower and the proposed transferee(s), modify or render void, any or all of the negotiated modifications to the Loan Documents
(and/or deferral of deposits to Reserve Funds) as a condition to Lender’s consent to the proposed Transfer.

 

		7.01	Permitted Transfers. The occurrence of any of the following Transfers will not constitute an
Event of Default under this Loan Agreement, notwithstanding any provision of Section 7.02 to the contrary:

 

		(a)	A Transfer to which Lender has consented.

 

		(b)	A Transfer that is not a prohibited Transfer pursuant to Section 7.02.

 

		(c)	A Transfer that is conditionally permitted pursuant to Section 7.03 upon the satisfaction of
all applicable conditions.

 

		(d)	The grant of a leasehold interest in an individual dwelling unit for a term of 2 years or less
(or longer if approved by Lender in writing) not containing an option to purchase.

 

		(e)	Entering into any New Non-Residential Lease, or modifying
or terminating any Non-Residential Lease, in each case in compliance with Section 6.04.

  

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		(f)	A Transfer of obsolete or worn out Personalty or Fixtures that are contemporaneously replaced by items
of equal or better function and quality, which are free of Liens, encumbrances and security interests other than those created
by the Loan Documents or consented to by Lender.

 

		(g)	The creation of a mechanic’s, materialman’s, or judgment Lien against the Mortgaged Property,
which is released of record, bonded, or otherwise remedied to Lender’s satisfaction within 60 days of the date of creation;
provided, however, if Borrower is diligently prosecuting such release or other remedy and advises Lender that such release or remedy
cannot be consummated within such 60-day period, Borrower will have an additional period of time (not exceeding 120 days from the
date of creation or such earlier time as may be required by applicable law in which the lienor must act to enforce the Lien) within
which to obtain such release of record or consummate such other remedy.

 

		(h)	If Borrower is a housing cooperative corporation or association, the Transfer of the shares in the
housing cooperative or the assignment of the occupancy agreements or Leases relating thereto to tenant shareholders of the housing
cooperative or association.

 

		(i)	A Supplemental Instrument that complies with Section 11.11 or Defeasance that complies with Section 11.12.

 

		(j)	A Preapproved Intrafamily Transfer pursuant to Section 7.04, if applicable.

 

		7.02	Prohibited Transfers. The occurrence of any of the following Transfers will constitute an Event
of Default under this Loan Agreement:

 

		(a)	A Transfer of all or any part of the Mortgaged Property or any interest
in the Mortgaged Property, including the grant, creation or existence of any Lien on the Mortgaged Property, whether voluntary,
involuntary or by operation of law, and whether or not such Lien has priority over the Lien of the Security Instrument, other than
the Lien of the Security Instrument or, if this Loan Agreement is entered into in connection with a Supplemental Loan, the Lien
of the Senior Instrument, or any other Lien to which Lender has consented.

 

		(b)	A Transfer or series of Transfers of any legal or equitable interest of any Guarantor which owns a
direct or indirect interest in Borrower that result(s) in such Guarantor no longer owning any direct or indirect interest in Borrower.

 

		(c)	A Transfer or series of Transfers of any legal or equitable interest since the Closing Date that result(s)
in a change of more than 50% of the ownership interests (or beneficial interests, if the applicable entity is a trust) in Borrower
or any Designated Entity for Transfers.

 

		(d)	A Transfer of any general partnership interest in a partnership, or any manager interest (whether
a member manager or nonmember manager) in a limited liability company, or a change in the trustee of a trust other than as permitted
in Section 7.04, if such partnership, limited liability company, or trust, as applicable, is the Borrower or a Designated Entity
for Transfers.

  

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		(e)	If Borrower or any Designated Entity for Transfers is a corporation whose outstanding voting stock
is held by 100 or more shareholders, other than a real estate investment trust, one or more Transfers by a single transferor within
a 12-month period affecting an aggregate of 10% or more of that stock.

 

		(f)	The grant, creation or existence of any Lien, whether voluntary, involuntary
or by operation of law, and whether or not such Lien has priority over the Lien of the Security Instrument, on any ownership interest
in Borrower or any Designated Entity for Transfers, if the foreclosure of such Lien would result in a Transfer prohibited under
Sections 7.02(b), (c), (d), or (e).

 

		7.03	Conditionally Permitted Transfers. The occurrence of any of the following Transfers will not
constitute a prohibited Transfer under Section 7.02, provided that Borrower has complied with all applicable specified conditions
in this Section.

 

		(a)	Transfer by Devise, Descent or Operation of Law. Upon the death of a natural person, a Transfer
which occurs by devise, descent, or by operation of law to one or more Immediate Family Members of such natural person or to a
trust or family conservatorship established for the benefit of such Immediate Family Members (each a “Beneficiary”),
provided that each of the following conditions is satisfied:

 

		(i)	The Property Manager (or a replacement Property Manager approved by Lender), if applicable, continues
to be responsible for the management of the Mortgaged Property, and such Transfer will not result in a change in the day-to-day
operations of the Mortgaged Property.

 

		(ii)	Lender receives confirmation acceptable to Lender, in Lender’s Discretion, that Borrower continues
to satisfy the requirements of Section 6.13.

 

		(iii)	Each Guarantor executes such documents and agreements as Lender requires in Lender’s Discretion
to evidence and effect the ratification of each Guaranty, or in the event of the death of any Guarantor, Borrower causes one of
the following to occur:

 

		(A)	One or more Persons acceptable to Lender, in Lender’s Discretion, execute(s) and deliver(s)
to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed on the Closing
Date, without any cost or expense to Lender.

 

		(B)	The estate of the deceased Guarantor immediately ratifies the Guaranty in writing, and within 6 months
after the date of the death of the deceased Guarantor one or more Persons, acceptable to Lender in Lender’s Discretion, execute(s)
and deliver(s) to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed
on the Closing Date, without any cost or expense to Lender.

  

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		(iv)	Borrower gives Lender Notice of such Transfer together with copies of all documents effecting such
Transfer not more than 30 calendar days after the date of such Transfer, and contemporaneously with the Notice, takes each
of the following additional actions:

 

		(A)	Borrower reaffirms the representations and warranties under Article V.

 

		(B)	Borrower satisfies Lender, in Lender’s Discretion,
that the Beneficiary’s organization, credit and experience in the management of similar properties are appropriate to the
overall structure and documentation of the existing financing.

 

		(v)	Borrower or Beneficiary causes to be delivered to Lender such legal opinions as Lender deems necessary,
in Lender’s Discretion, including an opinion that the Beneficiary and any SPE Equity Owner of Beneficiary is in compliance
with Section 6.13 (if applicable), a nonconsolidation opinion (if a nonconsolidation opinion was delivered on the Closing
Date and if required by Lender), an opinion that the ratification of the Loan Documents and Guaranty (if applicable) have been
duly authorized, executed, and delivered and that the ratification documents and Guaranty (if applicable) are enforceable as the
obligations of Borrower, Beneficiary or Guarantor, as applicable.

 

		(vi)	Borrower (A) pays the Transfer Review Fee to Lender, and (B) pays or reimburses Lender,
upon demand, for all costs and expenses including all Attorneys’ Fees and Costs, incurred by Lender in connection with such
Transfer; provided, however, that Lender will not be entitled to collect a Transfer Fee.

 

		(b)	Easement, Restrictive Covenant or Other Encumbrance. The grant of an easement, restrictive
covenant or other encumbrance, provided that each of the following conditions is satisfied:

 

		(i)	Borrower provides Lender with at least 30 days prior
Notice of the proposed grant and pays the Transfer Review Fee to Lender.

 

		(ii)	Prior to the grant, Lender determines, in Lender’s
Discretion, that the easement, restrictive covenant or other encumbrance will not materially affect the operation or value of
the Mortgaged Property or Lender’s interest in the Mortgaged Property.

 

		(iii)	Borrower pays or reimburses Lender, upon demand, for
all costs and expenses, including all Attorneys’ Fees and Costs, incurred by Lender in connection with reviewing Borrower’s
request for Lender’s review of such grant of easement, restrictive covenant or other encumbrance; provided, however, that
Lender will not be entitled to collect a Transfer Fee.

  

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		(iv)	If the Note is held by a REMIC trust, if required by Lender, Borrower provides an opinion of counsel
for Borrower, in form and substance satisfactory to Lender in its sole and absolute discretion, confirming each of the following:

 

		(A)	The grant of such easement has been effected in accordance with the requirements of Treasury Regulation
Section 1.860G-2(a)(8) (as such regulation may be modified, amended or replaced from time to time).

 

		(B)	The qualification and status of the REMIC trust as a REMIC will not be adversely affected or impaired
as a result of such grant.

 

		(C)	The REMIC trust will not incur a tax under Section 860G(d) of the Tax Code as a result of such
grant.

 

		(c)	Publicly-Held Fund or Real Estate Investment Trust. If a Designated Entity for Transfers is
a publicly-held fund or real estate investment trust, either of the following:

 

		(i)	The public issuance of common stock, convertible debt,
equity or other similar securities (“Public Fund/REIT Securities”) and the subsequent Transfer of such Public
Fund/REIT Securities.

 

		(ii)	The acquisition by a single Public Fund/REIT Securities
holder of an ownership percentage of 10% or more in the Designated Entity for Transfers, if Borrower provides notice of that acquisition
to Lender within 30 days following the acquisition.

 

		(d)	Reserved.

 

		7.04	Preapproved Intrafamily Transfers. The occurrence of a Transfer of more than a 50% interest
in Borrower or a Designated Entity for Transfers as set forth in this Section will be considered to be a “Preapproved
Intrafamily Transfer” provided that each of the following conditions is satisfied:

 

		(a)	Type of Transfer. The Transfer is one of the following:

 

		(i)	A sale or transfer to one or more of the transferor’s Immediate Family Members.

 

		(ii)	A sale or transfer to any trust having as its sole beneficiaries the transferor and/or one or more
of the transferor’s Immediate Family Members.

 

		(iii)	A sale or transfer from a trust to any one or more of its beneficiaries who are the settlor and/or
Immediate Family Members of the settlor of the trust.

  

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		(iv)	The substitution or replacement of the trustee of any trust with a trustee who is an Immediate Family
Member of the settlor of the trust.

 

		(v)	A sale or transfer to an entity owned and under the Control of the transferor or the transferor’s
Immediate Family Members.

 

		(b)	Conditions. The Preapproved Intrafamily Transfer satisfies each of the following conditions:

 

		(i)	Borrower provides Lender with 30 days prior Notice of the proposed Preapproved Intrafamily Transfer,
along with the Transfer Review Fee.

 

		(ii)	Robert C. Rohdie continues to manage (either directly or through an entity) the day to day
operations of Borrower.

 

		(iii)	At the time of the Preapproved Intrafamily Transfer, no Event of Default has occurred and is continuing
and no event or condition has occurred and is continuing that, with the giving of Notice or the passage of time, or both, would
become an Event of Default.

 

		(iv)	Lender collects all costs, including the cost of all title searches, title insurance and recording
costs, and all Attorneys’ Fees and Costs; provided, however, that Lender will not be entitled to collect a Transfer Fee.

 

		(v)	If a nonconsolidation opinion was delivered on the Closing Date and if, after giving effect to all
Preapproved Intrafamily Transfers and all prior Transfers, 50% or more in the aggregate of direct or indirect interests in Borrower
are owned by any Person and its Affiliates that owned less than a 50% direct or indirect interest in Borrower as of the Closing
Date, Borrower provides an opinion of counsel for Borrower, in form and substance satisfactory to Lender and to the Rating Agencies,
with regard to nonconsolidation.

 

		(vi)	Lender receives confirmation acceptable to Lender, in Lender’s Discretion, that Section 6.13
continues to be satisfied.

 

		7.05	Lender’s Consent to Prohibited Transfers.

 

		(a)	Conditions for Lender’s Consent. With respect
to a Transfer that would otherwise constitute an Event of Default under this Article VII, Lender will consent, without any adjustment
to the rate at which the Indebtedness bears interest or to any other economic terms of the Indebtedness set forth in the Note,
provided that, prior to such Transfer, each of the following requirements is satisfied:

 

		(i)	Borrower has submitted to Lender all information required by Lender to make the determination required
by this Section along with the Transfer Review Fee.

  

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		(ii)	No Event of Default has occurred and is continuing and no event or condition has occurred and is continuing
that, with the giving of Notice or the passage of time, or both, would become an Event of Default unless such Transfer would cure
the Event of Default.

 

		(iii)	Lender in Lender’s Discretion has determined that the transferee meets Lender’s eligibility,
credit, management and other standards (including any standards with respect to previous relationships between Lender and the transferee).

 

		(iv)	Lender in Lender’s Discretion has determined that the transferee’s organization, credit
and experience in the management of similar properties to be appropriate to the overall structure and documentation of the Loan.

 

		(v)	Lender in Lender’s Discretion has determined that the Mortgaged Property will be managed by
a Property Manager meeting the requirements of Section 6.09(d).

 

		(vi)	Lender in Lender’s Discretion has determined that the Mortgaged Property, at the time of the
proposed Transfer, meets all of Lender’s standards as to its physical condition, occupancy, net operating income and the
accumulation of reserves.

 

		(vii)	Lender in Lender’s Discretion has determined that the transferee and any SPE Equity Owner of
such transferee meet the requirements of Section 6.13.

 

		(viii)	If a Supplemental Instrument is outstanding, Borrower has obtained the consent of the Supplemental
Lender.

 

		(ix)	In the case of a Transfer of all or any part of the Mortgaged Property, each of the following conditions
is satisfied:

 

		(A)	The transferee executes Lender’s then-standard assumption agreement that, among other things,
requires the transferee to perform all obligations of Borrower set forth in the Note, the Security Instrument, this Loan Agreement
and any other Loan Document, and may require that the transferee comply with any provisions of this Loan Agreement or any other
Loan Document which previously may have been waived or modified by Lender.

 

		(B)	If Lender requires, the transferee causes one or more Persons acceptable to Lender, in Lender’s
Discretion, to execute and deliver to Lender a Guaranty in a form acceptable to Lender.

 

		(C)	The transferee executes such additional documentation (including filing financing statements, as applicable)
as Lender may require.

  

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		(x)	In the case of a Transfer of any interest in Borrower or a Designated Entity for Transfers, if a Guarantor
requests that Lender release the Guarantor from its obligations under a Guaranty executed and delivered in connection with the
Note, this Loan Agreement or any of the other Loan Documents, then Borrower causes one or more Persons acceptable to Lender, in
Lender’s Discretion, to execute and deliver to Lender a Guaranty in a form acceptable to Lender.

 

		(xi)	Lender has received such legal opinions as Lender deems necessary, including an opinion that the transferee
and any SPE Equity Owner is in compliance with Section 6.13, a nonconsolidation opinion (if a nonconsolidation opinion was
delivered on the Closing Date and if required by Lender), an opinion that the assignment and assumption of the Loan Documents has
been duly authorized, executed, and delivered and that the assignment documents and the Loan Documents are enforceable as the obligations
of Borrower, transferee and Guarantor, as applicable.

 

		(xii)	Lender collects all costs, including the cost of all title searches, title insurance and recording
costs, and all Attorneys’ Fees and Costs incurred in reviewing the Transfer request and any fees charged by the Rating Agencies.

 

		(xiii)	At the time of the Transfer, Borrower pays the Transfer Fee to Lender.

 

		(b)	Continuing Liability of Borrower. If Borrower
requests a release of its liability under the Loan Documents in connection with a Transfer of all of the Borrower’s interest
in the Mortgaged Property, and Lender approves the Transfer pursuant to Section 7.05(a), then one of the following will apply:

 

		(i)	If Borrower delivers to Lender a current Site Assessment
which (A) is dated within 90 days prior to the date of the proposed Transfer, and (B) evidences no presence of Hazardous
Materials on the Mortgaged Property and no other Prohibited Activities or Conditions with respect to the Mortgaged Property (“Clean
Site Assessment”), then Lender will release Borrower from any liability under Section 6.12 or Section 10.02(b)
with respect to any indemnified matters created or arising solely from any Prohibited Activities or Conditions first existing
after the date of the Transfer, provided such loss, liability, damage, claim, cost or expense does not directly or indirectly
arise from or relate to any Prohibited Activities or Conditions existing prior to the date of the Transfer.

 

		(ii)	If Borrower does not deliver a Clean Site Assessment
as described in Section 7.05(b)(i), then Lender will release Borrower from all of Borrower’s obligations under the
Loan Documents except for liability under Section 6.12 or Section 10.02(b).

  

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		(c)	Continuing Liability of Guarantor. If Guarantor
requests a release of its liability under the Guaranty in connection with a Transfer which Lender has approved pursuant to Section 7.05(a),
and Borrower has provided a replacement Guarantor acceptable to Lender under the terms of Section 7.05(a)(ix)(B), then one
of the following will apply:

 

		(i)	If Borrower delivers to Lender a Clean Site Assessment,
then Lender will release Guarantor from Guarantor’s obligation to guaranty Borrower’s liability under Section 6.12
or Section 10.02(b) with respect to any indemnified matters created or arising solely from any Prohibited Activities or Conditions
first existing after the date of the Transfer, provided such loss, liability, damage, claim, cost or expense does not directly
or indirectly arise from or relate to any Prohibited Activities or Conditions existing prior to the date of the Transfer.

 

		(ii)	If Borrower does not deliver a Clean Site Assessment
as described in Section 7.05(b)(i), then Lender will release Guarantor from all of Guarantor’s obligations except for
Guarantor’s obligation to guaranty Borrower’s liability under Section 6.12 or Section 10.02(b).

 

		ARTICLE VIII	SUBROGATION.

 

If, and to the extent that, the proceeds of
the Loan, or subsequent advances under Section 9.02, are used to pay, satisfy or discharge a Prior Lien, such Loan proceeds
or advances will be deemed to have been advanced by Lender at Borrower’s request, and Lender will automatically, and without
further action on its part, be subrogated to the rights, including Lien priority, of the owner or holder of the obligation secured
by the Prior Lien, whether or not the Prior Lien is released.

 

		ARTICLE IX	EVENTS OF DEFAULT AND REMEDIES.

 

		9.01	Events of Default. The occurrence of any one or more of the following will constitute an Event
of Default under this Loan Agreement:

 

		(a)	Borrower fails to pay or deposit when due any amount required by the Note, this Loan Agreement or
any other Loan Document.

 

		(b)	Borrower fails to maintain the Insurance coverage required by Section 6.10.

 

		(c)	Borrower or any SPE Equity Owner fails to comply with the provisions of Section 6.13 or if any
of the assumptions contained in any nonconsolidation opinions delivered to Lender at any time is or becomes untrue in any material
respect.

 

		(d)	Borrower or any SPE Equity Owner, any of its officers, directors, trustees, general partners or managers
or any Guarantor commits fraud or a material misrepresentation or material omission in connection with (i) the application for
or creation of the Indebtedness, (ii) any financial statement, Rent Schedule, or other report or information provided to Lender
during the term of the Indebtedness, or (iii) any request for Lender’s consent to any proposed action, including a request
for disbursement of funds under this Loan Agreement.

  

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		(e)	Borrower fails to comply with the Condemnation provisions of Section 6.11.

 

		(f)	A Transfer occurs that violates the provisions of Article VII, whether or not any actual impairment
of Lender’s security results from such Transfer.

 

		(g)	A forfeiture action or proceeding, whether civil or criminal, is commenced which could result in a
forfeiture of the Mortgaged Property or otherwise materially impair the Lien created by the Security Instrument or Lender’s
interest in the Mortgaged Property.

 

		(h)	Borrower fails to perform any of its obligations under this Loan Agreement (other than those specified
in Sections 9.01(a) through (g)), as and when required, which failure continues for a period of 30 days after Notice of such
failure by Lender to Borrower. However, if Borrower’s failure to perform its obligations as described in this Section 9.01(h)
is of the nature that it cannot be cured within the 30 day cure period after such Notice from Lender but reasonably could
be cured within 90 days, then Borrower will have additional time as determined by Lender in Lender’s Discretion, not
to exceed an additional 60 days, in which to cure such default, provided that Borrower has diligently commenced to cure such
default during the initial 30 day cure period and diligently pursues the cure of such default. However, no such Notice or
cure periods will apply in the case of any such failure which could, in Lender’s judgment, absent immediate exercise by Lender
of a right or remedy under this Loan Agreement, result in harm to Lender, danger to tenants or third parties, or impairment of
the Note, the Security Instrument or this Loan Agreement or any other security given under any other Loan Document.

 

		(i)	Borrower fails to perform any of its obligations as and when required under any Loan Document other
than this Loan Agreement which failure continues beyond the applicable cure period, if any, specified in that Loan Document.

 

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

 

		(k)	Any of the following occurs:

 

		(i)	Borrower or any SPE Equity Owner commences any case, Proceeding or other action under any existing
or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, conservatorship or
relief of debtors (A) seeking to have an order for relief entered with respect to it, or seeking to adjudicate it bankrupt
or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief
with respect to it or its debt, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official
for it or for all or any substantial part of its assets.

  

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		(ii)	Any party other than Lender commences any case, Proceeding, or other action of a nature referred to
in Section 9.01(k)(i) against Borrower or any SPE Equity Owner which (A) results in the entry of an order for relief or any
such adjudication or appointment, or (B) has not been dismissed, discharged or bonded for a period of 90 days.

 

		(iii)	Any case, Proceeding or other action is commenced against Borrower or any SPE Equity Owner seeking
issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets
which results in the entry of any order by a court of competent jurisdiction for any such relief which is not vacated, discharged,
or stayed or bonded pending appeal within 90 days from the entry thereof.

 

		(iv)	Borrower or any SPE Equity Owner takes any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the acts set forth in Section 9.01(k)(i), (ii) or (iii).

 

		(l)	Borrower or any SPE Equity Owner has made any representation or warranty in Article V or any
other Section of this Loan Agreement that is false or misleading in any material respect.

 

		(m)	If the Loan is secured by an interest under a Ground Lease, Borrower fails to comply with the provisions
of Section 6.19.

 

		(n)	If the Loan is a Supplemental Loan, any Event of Default occurs under (i) the Senior Note, the Senior
Instrument or any other Senior Loan Document, or (ii) any loan document related to another loan in connection with the Mortgaged
Property, regardless of whether Borrower has obtained Supplemental Lender’s approval of the placement of such Lien on the
Mortgaged Property. In addition, if the Loan is a Supplemental Loan, as Borrower under both the Supplemental Instrument and the
Senior Instrument, Borrower acknowledges and agrees that if there is an Event of Default under the Supplemental Note, the Supplemental
Instrument or any other Supplemental Loan Document, such Event of Default will be an Event of Default under the terms of the Senior
Instrument and will entitle Senior Lender to invoke any and all remedies permitted to Senior Lender by applicable law, the Senior
Note, the Senior Instrument or any of the other Senior Loan Documents.

 

		(o)	If the Mortgaged Property is subject to any covenants, conditions and/or restrictions, land use restriction
agreements or similar agreements, Borrower fails to perform any of its obligations under any such agreement as and when required,
and such failure continues beyond any applicable cure period.

  

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		(p)	A Guarantor files for bankruptcy protection under the Bankruptcy Code or a Guarantor voluntarily becomes
subject to any reorganization, receivership, insolvency proceeding or other similar proceeding pursuant to any other federal or
state law affecting debtor and creditor rights, or any creditor (other than Lender) of a Guarantor commences any involuntary case
against a Guarantor pursuant to the Bankruptcy Code or other federal or state law affecting debtor and creditor rights, unless
each of the following conditions is satisfied:

 

		(i)	Borrower or Guarantor provides Notice of such action to Lender within 30 days after the filing
of such action.

 

		(ii)	Either (A) the case is dismissed or discharged within 90 days after filing, or (B) within
90 days following the date of such filing or commencement, the affected Guarantor is replaced with one or more other Persons
acceptable to Lender, in Lender’s Discretion, each of whom executes and delivers to Lender a replacement Guaranty in form
and content acceptable to Lender, together with such legal opinions as Lender deems necessary; provided, however, that if Lender
determines, in Lender’s Discretion, that any proposed replacement Guarantor is not acceptable, then the action will constitute
a prohibited Transfer governed by Section 7.02.

 

		(iii)	If Lender approves a replacement Guarantor, Borrower
pays the Transfer Review Fee to Lender.

 

		(q)	With respect to a Guarantor, either of the following
occurs:

 

		(i)	The death of any Guarantor who is a natural person, unless within 30 days following the Guarantor’s
death, Borrower causes one of the following to occur:

 

		(A)	One or more Persons acceptable to Lender, in Lender’s Discretion, execute(s) and deliver(s)
to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed on the Closing
Date, without any cost or expense to Lender.

 

		(B)	The estate of the deceased Guarantor immediately ratifies the Guaranty in writing, and within 6 months
after the date of the death of the deceased Guarantor one or more Persons, acceptable to Lender in Lender’s Discretion, execute(s)
and deliver(s) to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed
on the Closing Date, without any cost or expense to Lender.

 

		(ii)	The dissolution of any Guarantor who is an entity, unless within 30 days following the dissolution
of the Guarantor, Borrower causes one or more Persons acceptable to Lender, in Lender’s Discretion, to execute and deliver
to Lender a guaranty in a form acceptable to Lender and in substantially the same form as the Guaranty executed on the Closing
Date, without any cost or expense to Lender.

  

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		(r)	If a Cap Agreement is required, Borrower fails to provide Lender with a Replacement Cap Agreement
prior to the expiration of the then-existing Cap Agreement.

 

		9.02	Protection of Lender’s Security; Security Instrument Secures Future Advances. 

 

		(a)	If Borrower fails to perform any of its obligations under this Loan Agreement or any other Loan Document,
or if any action or proceeding is commenced which purports to affect the Mortgaged Property, Lender’s security or Lender’s
rights under this Loan Agreement, including eminent domain, insolvency, code enforcement, civil or criminal forfeiture, enforcement
of Hazardous Materials Laws, fraudulent conveyance or reorganizations or proceedings involving a bankrupt or decedent, then Lender,
in Lender’s Discretion, may make such appearances, file such documents, disburse such sums and take such actions as Lender
reasonably deems necessary to perform such obligations of Borrower and to protect Lender’s interest, including (i) payment
of Attorneys’ Fees and Costs, (ii) payment of fees and out-of-pocket expenses of accountants, inspectors and consultants,
(iii) entry upon the Mortgaged Property to make Repairs or secure the Mortgaged Property, (iv) procurement of the Insurance required
by Section 6.10, (v) payment of amounts which Borrower has failed to pay under Section 6.08, (vi) performance of Borrower’s
obligations under Section 6.09, and (vii) advances made by Lender to pay, satisfy or discharge any obligation of Borrower
for the payment of money that is secured by a Prior Lien.

 

		(b)	Any amounts disbursed by Lender under this Section 9.02, or under any other provision of this
Loan Agreement that treats such disbursement as being made under this Section 9.02, will be secured by the Security Instrument,
will be added to, and become part of, the principal component of the Indebtedness, will be immediately due and payable and will
bear interest from the date of disbursement until paid at the Default Rate.

 

		(c)	Nothing in this Section 9.02 will require Lender to incur any expense or take any action.

 

		9.03	Remedies. 

 

		(a)	Upon an Event of Default, Lender may exercise any or all of its rights and remedies provided under
the Loan Documents and Borrower will pay all costs associated therewith, including Attorneys’ Fees and Costs.

 

		(b)	Each right and remedy provided in this Loan Agreement is distinct from all other rights or remedies
under this Loan Agreement or any other Loan Document or afforded by applicable law or equity, and each will be cumulative and may
be exercised concurrently, independently or successively, in any order. Lender’s exercise of any particular right or remedy
will not in any way prevent Lender from exercising any other right or remedy available to Lender. Lender may exercise any such
remedies from time to time and as often as Lender chooses.

  

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		(c)	Lender will have all remedies available to Lender under Revised Article 9 of the Uniform Commercial
Code of the Property Jurisdiction, the Loan Documents and under applicable law.

 

		(d)	Lender may also retain (i) all money in the Reserve Funds, including interest, and (ii) any
Cap Payment, and in Lender’s sole and absolute discretion, may apply such amounts, without restriction and without any specific
order of priority, to the payment of any and all Indebtedness.

 

		(e)	If a claim or adjudication is made that Lender has acted unreasonably or unreasonably delayed acting
in any case where, by law or under this Loan Agreement or the other Loan Documents, Lender has an obligation to act reasonably
or promptly, then Lender will not be liable for any monetary damages, and Borrower’s sole remedy will be limited to commencing
an action seeking injunctive relief or declaratory judgment. Any action or proceeding to determine whether Lender has acted reasonably
will be determined by an action seeking declaratory judgment.

 

		9.04	Forbearance. 

 

		(a)	Lender may (but will not be obligated to) agree with Borrower, from time to time, and without giving
Notice to, or obtaining the consent of, or having any effect upon the obligations of, any Guarantor or other third party obligor,
to take any of the following actions:

 

		(i)	Extend the time for payment of all or any part of the Indebtedness.

 

		(ii)	Reduce the payments due under this Loan Agreement, the Note or any other Loan Document.

 

		(iii)	Release anyone liable for the payment of any amounts under this Loan Agreement, the Note or any other
Loan Document.

 

		(iv)	Accept a renewal of the Note.

 

		(v)	Modify the terms and time of payment of the Indebtedness.

 

		(vi)	Join in any extension or subordination agreement.

 

		(vii)	Release any portion of the Mortgaged Property.

 

		(viii)	Take or release other or additional security.

 

		(ix)	Modify the rate of interest or period of amortization of the Note or change the amount of the monthly
installments payable under the Note.

  

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		(x)	Otherwise modify this Loan Agreement, the Note or any other Loan Document.

 

		(b)	Any forbearance by Lender in exercising any right or remedy under the Note, this Loan Agreement or
any other Loan Document or otherwise afforded by applicable law, will not be a waiver of or preclude the exercise of any other
right or remedy, or the subsequent exercise of any right or remedy. The acceptance by Lender of payment of all or any part of the
Indebtedness after the due date of such payment, or in an amount which is less than the required payment, will not be a waiver
of Lender’s right to require prompt payment when due of all other payments on account of the Indebtedness or to exercise
any remedies for any failure to make prompt payment. Enforcement by Lender of any security for the Indebtedness will not constitute
an election by Lender of remedies so as to preclude the exercise of any other right available to Lender. Lender’s receipt
of any awards or proceeds under Sections 6.10 and 6.11 will not operate to cure or waive any Event of Default.

 

		9.05	Waiver of Marshalling. Notwithstanding the existence of any other security interests in the
Mortgaged Property held by Lender or by any other party, Lender will have the right to determine the order in which any or all
of the Mortgaged Property will be subjected to the remedies provided in this Loan Agreement or any other Loan Document or applicable
law. Lender will have the right to determine the order in which any or all portions of the Indebtedness are satisfied from the
proceeds realized upon the exercise of such remedies. Borrower and any party who now or in the future acquires a security interest
in the Mortgaged Property and who has actual or constructive notice of the Security Instrument waives any and all right to require
the marshalling of assets or to require that any of the Mortgaged Property be sold in the inverse order of alienation or that any
of the Mortgaged Property be sold in parcels or as an entirety in connection with the exercise of any of the remedies permitted
by applicable law or provided in this Loan Agreement.

 

		ARTICLE X	RELEASE; INDEMNITY.

 

		10.01	Release. Borrower covenants and agrees that, in performing any of its duties under this Loan
Agreement, none of Lender, Loan Servicer or any of their respective agents or employees will be liable for any losses, claims,
damages, liabilities and expenses that may be incurred by any of them as a result of such performance, except that no party will
be released from liability for any losses, claims, damages, liabilities or expenses arising out of the willful misconduct or gross
negligence of such party.

  

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		10.02	Indemnity.

 

		(a)	General Indemnity. Borrower agrees to indemnify, hold harmless and defend Lender, including
any custodian, trustee and other fiduciaries who hold or have held a full or partial interest in the Loan for the benefit of third
parties, any prior owner or holder of the Note, the Loan Servicer, any prior Loan Servicer, the officers, directors, shareholders,
partners, employees and trustees of each of the foregoing, and the heirs, legal representatives, successors and assigns of each
of the foregoing (collectively, “Indemnitees”) against any and all losses, claims, damages, liabilities and
expenses including Attorneys’ Fees and Costs, which may be imposed or incurred by any of them directly or indirectly arising
out of, or in any way relating to, or as a result of (i) any failure of the Mortgaged Property to comply with the laws, regulations,
ordinance, code or decree of any Governmental Authority, including those pertaining to the Americans with Disabilities Act, zoning,
occupancy and subdivision of real property, (ii) any obligation of Borrower under any Lease, and (iii) any accident, injury or
death to any natural person on the Mortgaged Property or any damage to personal property located on the Mortgaged Property, except
that no such party will be indemnified from liability for any losses, claims, damages, liabilities or expenses arising out of the
willful misconduct or gross negligence of such party.

 

		(b)	Environmental Indemnity. Borrower agrees to indemnify, hold harmless and defend Indemnitees
from and against all proceedings, claims, damages, penalties and costs (whether initiated or sought by Governmental Authorities
or private parties), including Attorneys’ Fees and Costs and remediation costs, whether incurred in connection with any judicial
or administrative process or otherwise, arising directly or indirectly from any of the following:

 

		(i)	Any breach of any representation or warranty of Borrower in Section 5.05.

 

		(ii)	Any failure by Borrower to perform any of its obligations under Section 6.12.

 

		(iii)	The existence or alleged existence of any Prohibited Activity or Condition.

 

		(iv)	The presence or alleged presence of Hazardous Materials on or under the Mortgaged Property or in any
of the Improvements.

 

		(v)	The actual or alleged violation of any Hazardous Materials Law.

 

		(c)	Indemnification Regarding ERISA Covenants. BORROWER WILL INDEMNIFY LENDER AND DEFEND AND
HOLD LENDER HARMLESS FROM AND AGAINST ALL CIVIL PENALTIES, EXCISE TAXES, OR OTHER LOSS, COST, DAMAGE AND EXPENSE (INCLUDING REASONABLE
ATTORNEYS’ FEES AND COSTS INCURRED IN THE INVESTIGATION, DEFENSE AND SETTLEMENT OF CLAIMS AND LOSSES INCURRED IN CORRECTING
ANY PROHIBITED TRANSACTION OR IN THE SALE OF A PROHIBITED LOAN, AND IN OBTAINING ANY INDIVIDUAL PROHIBITED TRANSACTION EXEMPTION
UNDER ERISA THAT MAY BE REQUIRED, IN LENDER’S SOLE AND ABSOLUTE DISCRETION) THAT LENDER MAY INCUR, DIRECTLY OR INDIRECTLY,
AS A RESULT OF DEFAULT UNDER SECTION 6.20. THIS INDEMNITY WILL SURVIVE ANY TERMINATION, SATISFACTION OR FORECLOSURE OF THE
SECURITY INSTRUMENT.

  

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		(d)	Securitization Indemnification. 

 

		(i)	Borrower agrees to indemnify, hold harmless and defend the Indemnified
Parties from and against any and all proceedings, losses, claims, damages, liabilities, penalties, costs and expenses (whether
initiated or sought by Governmental Authorities or private parties), including Attorneys’ Fees and Costs, which may be incurred
by any Indemnified Party (either directly or indirectly), which arise out of, are in any way related to, or are as a result of
a claim that the Borrower Information contains an untrue statement of any material fact or the Borrower Information omits to state
a material fact necessary in order to make the statements therein, in light of the circumstances under which they are made, not
misleading (collectively, the “Securitization Indemnification”).

 

		(ii)	Borrower will not be liable under the Securitization
Indemnification if the claim is based on Borrower Information which Lender has materially misstated or materially misrepresented
in the Disclosure Document.

 

		(iii)	For purposes of this
Section 10.02(d):

 

		(A)	“Borrower
Information” includes any information provided at any time to Lender or Loan Servicer by Borrower, any SPE Equity Owner,
any Guarantor, any Property Manager or any Affiliates of the foregoing with respect to any of the following:

 

		(1)	Any Person listed in
Section 10.02(d)(iii)(A).

 

		(2)	The Loan.

 

		(3)	The Mortgaged Property.

 

			Borrower Information includes (i) representations and warranties made in
the Loan Documents, (ii) financial statements of Borrower, any SPE Equity Owner, any Designated Entity for Transfers or any Guarantor,
and (iii) operating statements and rent rolls with respect to the Mortgaged Property.

 

		(B)	The term “Lender” includes its officers and directors.

 

		(C)	
                                                                                                                            An “Issuer Person” includes all of the following:

 

		(1)	Any Affiliate of Lender
that has filed the registration statement, if any, relating to the Securitization.

 

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		(2)	Any Affiliate of Lender
which is acting as issuer, depositor, sponsor and/or in a similar capacity with respect to the Securitization.

 

		(D)	The “Issuer Group” includes all of the following:

 

		(1)	Each director and officer
of any Issuer Person.

 

		(2)	Each entity that Controls
any Issuer Person within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act.

 

		(E)	The
                                                                                                                            “Underwriter
                                                                                                                            Group”
                                                                                                                            includes
                                                                                                                            all
                                                                                                                            of
                                                                                                                            the
                                                                                                                            following:

 

		(1)	Each entity which is
acting as an underwriter, manager, placement agent, initial purchaser or in a similar capacity with respect to the Securitization.

 

		(2)	Each of its directors
and officers.

 

		(3)	Each entity that Controls
any such entity within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act and is acting
as an underwriter, manager, placement agent, initial purchaser or in a similar capacity with respect to the Securitization.

 

		(4)	The directors and officers
of such entity described in Section 10.02(d)(iii)(E)(1).

 

		(F)	“Indemnified
                                                                                                                            Party”
                                                                                                                            or
                                                                                                                            “Indemnified
                                                                                                                            Parties”
                                                                                                                            means
                                                                                                                            one
                                                                                                                            or
                                                                                                                            more
                                                                                                                            of
                                                                                                                            Lender,
                                                                                                                            Issuer
                                                                                                                            Person,
                                                                                                                            Issuer
                                                                                                                            Group,
                                                                                                                            and
                                                                                                                            Underwriter
                                                                                                                            Group.
                                                                                                                            

 

		(e)	Selection and Direction of Counsel. Counsel selected by Borrower to defend Indemnitees will
be subject to the approval of those Indemnitees. In any circumstances in which the indemnity under this Article X applies, Lender
may employ its own legal counsel and consultants to prosecute, defend or negotiate any claim or legal or administrative proceeding
and Lender, with the prior written consent of Borrower (which will not be unreasonably withheld, delayed or conditioned) may settle
or compromise any action or legal or administrative proceeding. However, unless an Event of Default has occurred and is continuing,
or the interests of Borrower and Lender are in conflict, as determined by Lender in Lender’s Discretion, Lender will permit
Borrower to undertake the actions referenced in this Article X so long as Lender approves such action, which approval will not
be unreasonably withheld or delayed. Borrower will reimburse Lender upon demand for all costs and expenses incurred by Lender,
including all costs of settlements entered into in good faith, consultants’ fees and Attorneys’ Fees and Costs.

  

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		(f)	Settlement or Compromise of Claims. Borrower will not, without the prior written consent of
those Indemnitees who are named as parties to a claim or legal or administrative proceeding (“Claim”), settle
or compromise the Claim if the settlement (i) 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 those Indemnitees, satisfactory in form and substance
to Lender, or (ii) may materially and adversely affect Lender, as determined by Lender in Lender’s Discretion.

 

		(g)	Effect of Changes to Loan on Indemnification Obligations. Borrower’s obligation to indemnify
the Indemnitees will 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:

 

		(i)	Any amendment or modification of any Loan Document.

 

		(ii)	Any extensions of time for performance required by any Loan Document.

 

		(iii)	Any provision in any of the Loan Documents limiting Lender’s recourse to property securing the
Indebtedness, or limiting the personal liability of Borrower or any other party for payment of all or any part of the Indebtedness.

 

		(iv)	The accuracy or inaccuracy of any representations and warranties made by Borrower under this Loan
Agreement or any other Loan Document.

 

		(v)	The release of Borrower or any other Person, by Lender or by operation of law, from performance of
any obligation under any Loan Document.

 

		(vi)	The release or substitution in whole or in part of any security for the Indebtedness.

 

		(vii)	Lender’s failure to properly perfect any Lien or security interest given as security for the
Indebtedness.

 

		(h)	Payments by Borrower. Borrower will, at its own cost and expense, do all of the following:

 

		(i)	Pay or satisfy any judgment or decree that may be entered against any Indemnitee or Indemnitees in
any legal or administrative proceeding incident to any matters against which Indemnitees are entitled to be indemnified under this
Article X.

 

		(ii)	Reimburse Indemnitees for any expenses paid or incurred in connection with any matters against which
Indemnitees are entitled to be indemnified under this Article X.

  

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		(iii)	Reimburse Indemnitees for any and all expenses, including Attorneys’ Fees and Costs, paid or
incurred in connection with the enforcement by Indemnitees of their rights under this Article X, or in monitoring and participating
in any legal or administrative proceeding.

 

		(i)	Other Obligations. The provisions of this Article X will 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 will
be entitled to indemnification under this Article X 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. If Borrower consists of more than one Person, the obligation of those Persons to indemnify
the Indemnitees under this Article X will be joint and several. The obligation of Borrower to indemnify the Indemnitees under this
Article X will survive any repayment or discharge of the Indebtedness, any foreclosure proceeding, any foreclosure sale, any delivery
of any deed in lieu of foreclosure, and any release of record of the Lien of the Security Instrument. Notwithstanding the foregoing,
if Lender has never been a mortgagee-in-possession of, or held title to, the Mortgaged Property, Borrower will have no obligation
to indemnify the Indemnitees under this Article X after the date of the release of record of the Lien of the Security Instrument
by payment in full at the Maturity Date or by voluntary prepayment in full.

 

		ARTICLE XI	MISCELLANEOUS PROVISIONS.

 

		11.01	Waiver of Statute of Limitations, Offsets and Counterclaims. Borrower waives the right to assert
any statute of limitations as a bar to the enforcement of this Loan Agreement or the Lien of the Security Instrument or to any
action brought to enforce any Loan Document. Borrower waives the right to assert a counterclaim, other than a compulsory counterclaim,
in any action or proceeding brought against it by Lender or otherwise to offset any obligations to make the payments required by
the Loan Documents. No failure by Lender to perform any of its obligations under the Loan Documents will be a valid defense to,
or result in any offset against, any payments that Borrower is obligated to make under any of the Loan Documents.

 

		11.02	Governing Law; Consent to Jurisdiction and Venue. 

 

		(a)	This Loan Agreement, and any Loan Document which does not itself expressly identify the law which
is to apply to it, will be governed by the laws of the Property Jurisdiction.

  

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		(b)	Borrower agrees that any controversy arising under or in relation to the Note, the Security Instrument,
this Loan Agreement or any other Loan Document may be litigated in the Property Jurisdiction. The state and federal courts and
authorities with jurisdiction in the Property Jurisdiction will have jurisdiction over all controversies that may arise under or
in relation to the Note, any security for the Indebtedness 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. However, nothing in this Section 11.02 is intended to limit Lender’s right
to bring any suit, action or proceeding relating to matters under this Loan Agreement in any court of any other jurisdiction.

 

		11.03	Notice. 

 

		(a)	All Notices under or concerning this Loan Agreement will be in writing. Each Notice will be deemed
given on the earliest to occur of (i) the date when the Notice is received by the addressee, (ii) the first Business Day after
the Notice is delivered to a recognized overnight courier service, with arrangements made for payment of charges for next Business
Day delivery, or (iii) the third Business Day after the Notice is deposited in the United States mail with postage prepaid, certified
mail, return receipt requested. Addresses for Notice are as follows:

 

	If to Lender:	
        Jones Lang LaSalle Operations, L.L.C.

        3344 Peachtree Road, N.E.

        Suite 1200

        Atlanta, Georgia 30326

         

	 	Attention:  Faron G. Thompson
	 	 
	If to Borrower:	
        Waypoint Enders Owner, LLC

        c/o Waypoint Residential, LLC

        3 Pickwick Plaza, 4th Floor

        Greenwich, Connecticut 06830

         

	 	Attention: Neil Paris

  

		(b)	Any party to this Loan Agreement may change the address to which Notices intended for it are to be
directed by means of Notice given to the other party in accordance with this Section 11.03. Each party agrees that it will
not refuse or reject delivery of any Notice given in accordance with this Section 11.03, that it will acknowledge, in writing,
the receipt of any Notice upon request by the other party and that any Notice rejected or refused by it will be deemed for purposes
of this Section 11.03 to have been received by the rejecting party on the date so refused or rejected, as conclusively established
by the records of the U.S. Postal Service or the courier service.

 

		(c)	Any Notice under the Note and any other Loan Document that does not specify how Notices are to be
given will be given in accordance with this Section 11.03.

 

		11.04	Successors and Assigns Bound. This Loan Agreement will bind the respective successors and assigns
of Borrower and Lender, and the rights granted by this Loan Agreement will inure to Lender’s successors and assigns.

  

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		11.05	Joint and Several Liability. If more than one Person signs this Loan Agreement as Borrower,
the obligations of such Persons will be joint and several.

 

		11.06	Relationship of Parties; No Third Party Beneficiary. 

 

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

 

		(b)	No creditor of any party to this Loan Agreement and no other Person will be a third party beneficiary
of this Loan Agreement or any other Loan Document. Without limiting the generality of the preceding sentence, (i) any arrangement
(“Servicing Arrangement”) between Lender and any Loan Servicer for loss sharing or interim advancement of funds
will constitute a contractual obligation of such Loan Servicer that is independent of the obligation of Borrower for the payment
of the Indebtedness, (ii) Borrower will not be a third party beneficiary of any Servicing Arrangement, and (iii) no payment by
the Loan Servicer under any Servicing Arrangement will reduce the amount of the Indebtedness.

 

		11.07	Severability; Amendments. 

 

		(a)	The invalidity or unenforceability of any provision of
this Loan Agreement will not affect the validity or enforceability of any other provision, and all other provisions will remain
in full force and effect. This Loan Agreement contains the entire agreement among the parties as to the rights granted and the
obligations assumed in this Loan Agreement.

 

		(b)	This Loan Agreement may not be amended or modified except by a writing signed by the party against
whom enforcement is sought.

 

		11.08	Disclosure of Information. Borrower acknowledges that Lender may provide to third parties with
an existing or prospective interest in the servicing, enforcement, evaluation, performance, ownership, purchase, participation
or Securitization of the Loan, including any of the Rating Agencies, any entity maintaining databases on the underwriting and performance
of commercial mortgage loans, as well as governmental regulatory agencies having regulatory authority over Lender, any and all
information which Lender now has or may hereafter acquire relating to the Loan, the Mortgaged Property, Borrower, any SPE Equity
Owner or any Guarantor, as Lender determines necessary or desirable and that such information may be included in disclosure documents
in connection with a Securitization or syndication of participation interests, including a prospectus, prospectus supplement, offering
memorandum, private placement memorandum or similar document (each, a “Disclosure Document”) and also may be
included in any filing with the Securities and Exchange Commission pursuant to the Securities Act or the Securities Exchange Act.
To the fullest extent permitted under applicable law, Borrower irrevocably waives all rights, if any, to prohibit such disclosure,
including any right of privacy.

  

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		11.09	Determinations by Lender. Unless otherwise provided in this Loan Agreement, in any instance
where the consent or approval of Lender may be given or is required, or where any determination, judgment or decision is to be
rendered by Lender under this Loan Agreement, the granting, withholding or denial of such consent or approval and the rendering
of such determination, judgment or decision will be made or exercised by Lender (or its designated representative) at its sole
and exclusive option and in its sole and absolute discretion.

 

		11.10	Sale of Note; Change in Servicer; Loan Servicing. The Note or a partial interest in the Note
(together with this Loan Agreement and the other Loan Documents) may be sold one or more times without prior Notice to Borrower.
A sale may result in a change of the Loan Servicer. There also may be one or more changes of the Loan Servicer unrelated to a sale
of the Note. If there is a change of the Loan Servicer, Borrower will be given Notice of the change. All actions regarding the
servicing of the Loan evidenced by the Note, including the collection of payments, the giving and receipt of Notice, inspections
of the Mortgaged Property, inspections of books and records, and the granting of consents and approvals, may be taken by the Loan
Servicer unless Borrower receives Notice to the contrary. If Borrower receives conflicting Notices regarding the identity of the
Loan Servicer or any other subject, any such Notice from Lender will govern.

 

		11.11	Supplemental Financing.

 

		(a)	This Section will apply only if at the time of any application referred to in Section 11.11(b),
Freddie Mac has in effect a product described in its Multifamily Seller/Servicer Guide under which it purchases supplemental
mortgages on multifamily properties that meet specified criteria (“Supplemental Mortgage Product”). For purposes
of this Section 11.11 only, the term “Freddie Mac” will include any affiliate or subsidiary of Freddie Mac.

 

		(b)	After the first anniversary of the date of the Senior Indebtedness, Freddie Mac will consider an application
from an originating lender that is generally approved by Freddie Mac to sell mortgages to Freddie Mac under the Supplemental Mortgage
Product (“Approved Seller/Servicer”) for the purchase by Freddie Mac of a proposed indebtedness of Borrower
to the Approved Seller/Servicer to be secured by one or more Supplemental Instruments on the Mortgaged Property. Freddie Mac will
purchase each Supplemental Loan secured by the Mortgaged Property if each of the following conditions is satisfied:

 

		(i)	At the time of the proposed Supplemental Loan, no Event of Default may have occurred and be continuing
and no event or condition may have occurred and be continuing that, with the giving of Notice or the passage of time, or both,
would become an Event of Default.

  

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		(ii)	Borrower and the Mortgaged Property must be acceptable to Freddie Mac under its Supplemental Mortgage
Product.

 

		(iii)	New loan documents must be entered into to reflect each Supplemental Loan, such documents to be acceptable
to Freddie Mac in its discretion.

 

		(iv)	No Supplemental Loan may cause the combined debt service coverage ratio of the Mortgaged Property
after the making of that Supplemental Loan to be less than the Required DSCR. As used in this Section, the term “combined
debt service coverage ratio” means, with respect to the Mortgaged Property, the ratio of:

 

		(A)	the annual net operating income from the operations of the Mortgaged Property at the time of the proposed
Supplemental Loan,

 

to

 

		(B)	the aggregate of the annual principal and interest payable on all of the
following:

 

		(I)	the Indebtedness under this Loan Agreement (using a 30 year
amortization schedule), 

 

		(II)	any “Indebtedness” as defined in any security instruments recorded
against the Mortgaged Property (using a 30 year amortization schedule for any Supplemental Loans), and

 

		(III)	the proposed “Indebtedness” for any Supplemental Loan
(using a 30 year amortization schedule). 

 

As used in this
Section, “annual principal and interest” with respect to an adjustable-rate loan will be calculated by Freddie Mac
using an interest rate equal to one of the following:

 

		(X)	If the loan has an internal interest rate cap, the Capped
Interest Rate.

 

		(Y)	If the loan has an external interest rate cap, the external interest rate cap.

 

		(Z)	If the loan has no interest rate cap, the greater of (I) 7%, or (II) the then-current LIBOR
Index Rate plus the Margin plus 300 basis points.

  

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The annual net
operating income of the Mortgaged Property will be as determined by Freddie Mac in its discretion considering factors such as income
in place at the time of the proposed Supplemental Loan and income during the preceding 12 months, and actual, historical and
anticipated operating expenses. Freddie Mac will determine the combined debt service coverage ratio
of the Mortgaged Property based on its underwriting. Borrower will provide Freddie Mac such financial statements and other
information Freddie Mac may require to make these determinations.

 

		(v)	No Supplemental Loan may cause the combined loan to value ratio of the Mortgaged Property after the
making of that Supplemental Loan to exceed the Required LTV, as determined by Freddie Mac. As used in
this Section, “combined loan to value ratio” means, with respect to the Mortgaged Property, the ratio, expressed as
a percentage, of:

 

		(A)	the aggregate outstanding principal balances of all of the following:

 

		(I)	the Indebtedness under this Loan Agreement,

 

		(II)	any “Indebtedness” as defined in any security instruments recorded against the Mortgaged
Property, and

 

		(III)	the proposed “Indebtedness” for any Supplemental Loan,

 

to 

 

		(B)	the value of the Mortgaged Property.

 

Freddie
Mac will determine the combined loan to value ratio of the Mortgaged Property based on its underwriting. Borrower will provide
Freddie Mac such financial statements and other information Freddie Mac may require to make these determinations. In addition,
Freddie Mac, at Borrower’s expense, may obtain MAI appraisals of the Mortgaged Property in order to assist Freddie Mac in
making the determinations under this Section. If Freddie Mac requires an appraisal, then the value of the Mortgaged Property that
will be used to determine whether the Required LTV has been met will be the lesser of the appraised value set forth in such appraisal
or the value of the Mortgaged Property as determined by Freddie Mac.

 

		(vi)	Borrower’s organizational documents are amended to permit Borrower to incur additional debt
in the form of Supplemental Loans (Lender will consent to such amendment(s)).

 

		(vii)	One or more Persons acceptable to Freddie Mac executes and delivers to the Approved Seller/Servicer
a Guaranty in a form acceptable to Freddie Mac with respect to the exceptions to non-recourse liability described in Freddie Mac’s
form promissory note, unless Freddie Mac has elected to waive its requirement for a Guaranty.

  

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		(viii)	The loan term of each Supplemental Loan will be coterminous with the Senior Indebtedness or longer
than the Senior Indebtedness, in Freddie Mac’s discretion.

 

		(ix)	The Prepayment Premium Period of each Supplemental Loan will be coterminous with the Prepayment Premium
Period or the combined Lockout Period and Defeasance Period, as applicable, of the Senior Indebtedness.

 

		(x)	The interest rate of each Supplemental Loan will be determined by Freddie Mac in its discretion.

 

		(xi)	Lender enters into an intercreditor agreement (“Intercreditor Agreement”) acceptable
to Freddie Mac and to Lender for each Supplemental Loan.

 

		(xii)	Borrower’s payment of fees and other expenses charged by Lender, Freddie Mac, the Approved Seller/Servicer,
and the Rating Agencies (including reasonable Attorneys’ Fees and Costs) in connection with reviewing and originating each
Supplemental Loan.

 

		(xiii)	Notwithstanding anything to the contrary in Article IV, Borrower will make all required deposits under
the Senior Indebtedness for the payment of any Impositions, so long as a Supplemental Loan is outstanding, and such deposits will
be credited to the payment of any such required Impositions under any Supplemental Loan.

 

		(xiv)	If any covenants, conditions and restrictions affecting the Mortgaged Property
provide for a lien for any assessments or other unpaid amounts, Borrower will provide satisfactory evidence that such lien will
be subordinate to the lien of the Supplemental Instrument.

 

		(xv)	All other requirements of the Supplemental Mortgage Product must be met, unless Freddie Mac has elected
to waive one or more of its requirements.

 

		(c)	No later than 5 Business Days after Lender’s receipt of a written request from Borrower,
Lender will provide the following information to an Approved Seller/Servicer:

 

		(i)	The then-current outstanding principal balance of the Senior Indebtedness.

 

		(ii)	Payment history of the Senior Indebtedness.

 

		(iii)	Whether any Reserve Funds are being collected on the Senior Indebtedness and the amount of each such
Reserve Fund deposit as of the date of the request.

  

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		(iv)	Whether any Repairs, Capital Replacements or improvements or rental achievement or burn-off guaranty
requirements are existing or outstanding under the terms of the Senior Indebtedness.

 

		(v)	A copy of the most recent inspection report for the Mortgaged Property.

 

		(vi)	Whether any modifications or amendments have been made to the Loan Documents for the Senior Indebtedness
since origination of the Senior Indebtedness and, if applicable, a copy of such modifications and amendments.

 

		(vii)	Whether to Lender’s knowledge any Event of Default exists under the Senior Indebtedness.

 

			Lender will only be obligated to provide this information in connection with Borrower’s request
for a Supplemental Loan from an Approved Seller/Servicer. Notwithstanding anything in this Section to the contrary, if Freddie
Mac is the owner of the Note, this Section 11.11(c) is not applicable.

 

		(d)	Lender will have no obligation to consent to any mortgage or Lien on the Mortgaged Property that secures
any indebtedness other than the Indebtedness, except as set forth in this Loan Agreement.

 

		(e)	If a Supplemental Loan is made to Borrower, Borrower agrees that the terms of the Intercreditor Agreement
will govern with respect to any distributions of excess proceeds by Lender to the Supplemental Lender, and Borrower agrees that
Lender may distribute any excess proceeds received by Lender pursuant to the Loan Documents to Supplemental Lender pursuant to
the Intercreditor Agreement.

 

		11.12	Defeasance. (Section Applies if Loan is Assigned to REMIC Trust Prior to the Cut-off
Date). This Section 11.12 will apply if the Note is assigned to a REMIC trust prior to the Cut-off Date, and, subject
to Section 11.12(a) and (c), Borrower will have the right to defease the Loan in whole (“Defeasance”) and
obtain the release of the Mortgaged Property from the Lien of the Security Instrument upon the satisfaction of each of the following
conditions:

 

		(a)	Borrower will not have the right to obtain Defeasance at any of the following times:

 

		(i)	If the Loan is not assigned to a REMIC trust.

 

		(ii)	During the Lockout Period.

 

		(iii)	After the expiration of the Defeasance Period.

  

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		(iv)	After Lender has accelerated the maturity of the unpaid principal balance of, accrued interest on,
and other amounts payable under, the Note pursuant to Section 11 of the Note.

 

		(b)	Borrower will give Lender Notice (“Defeasance Notice”) specifying a Business Day
(“Defeasance Closing Date”) on which Borrower desires to close the Defeasance. The Defeasance Closing Date specified
by Borrower may not be more than 60 calendar days, nor less than 30 calendar days, after the date on which the Defeasance
Notice is received by Lender. Lender will acknowledge receipt of the Defeasance Notice and will state in such receipt whether Lender
will designate the Successor Borrower or will permit Borrower to designate the Successor Borrower.

 

		(c)	The Defeasance Notice must be accompanied by a $10,000 non-refundable fee (“Defeasance Fee”).
If Lender does not receive the Defeasance Fee, then Borrower’s right to obtain Defeasance pursuant to that Defeasance Notice
will terminate.

 

		(d)	(i)           If Borrower timely pays the Defeasance Fee, but Borrower fails to perform its other obligations under this Section, Lender will have the right to retain the Defeasance Fee as liquidated damages for Borrower’s default and, except as provided in Section 11.12(d)(ii), Borrower will be released from all further obligations under this Section 11.12. Borrower acknowledges that Lender will incur financing costs in arranging and preparing for the release of the Mortgaged Property from the Lien of the Security Instrument in reliance on the executed Defeasance Notice. Borrower agrees that the Defeasance Fee represents a fair and reasonable estimate, taking into account all circumstances existing on the date of this Loan Agreement, of the damages Lender will incur by reason of Borrower’s default. 

 

		(ii)	If the Defeasance is not consummated on the Defeasance Closing Date for any reason, Borrower agrees
to reimburse Lender for all third party costs and expenses (other than financing costs covered by Section 11.12(d)(i)) incurred
by Lender in reliance on the executed Defeasance Notice, within 5 Business Days after Borrower receives a written demand for payment,
accompanied by a statement, in reasonable detail, of Lender’s third party costs and expenses.

 

		(iii)	All payments required to be made by Borrower to Lender pursuant to this Section 11.12 will be
made by wire transfer of immediately available funds to the account(s) designated by Lender in its acknowledgement of the Defeasance
Notice.

 

		(e)	No Event of Default has occurred and is continuing.

 

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		(f)	Each of the following documents must be delivered to Lender on or prior to the Defeasance Closing
Date:

 

		(i)	An opinion of counsel for Borrower, in form and substance satisfactory to Lender, to the effect that
Lender has a valid and perfected Lien and security interest of first priority in the Defeasance Collateral and the proceeds thereof.

 

		(ii)	An opinion of counsel for Borrower, in form and substance satisfactory to Lender, to the effect that
the Pledge Agreement is duly authorized, executed, delivered and enforceable against Borrower in accordance with the respective
terms.

 

		(iii)	Unless waived by Lender or unless Lender designates the Successor Borrower, an opinion of counsel
for Successor Borrower, in form and substance satisfactory to Lender, to the effect that the Transfer and Assumption Agreement
is duly authorized, executed, delivered and enforceable against Successor Borrower in accordance with the respective terms.

 

		(iv)	Unless waived by Lender or unless Lender designates the Successor Borrower, an opinion of counsel
for Successor Borrower, in form and substance satisfactory to Lender, to the effect that the Successor Borrower has been validly
created.

 

		(v)	If Borrower designates the Successor Borrower, an opinion of counsel for Successor Borrower, in form
and substance satisfactory to Lender and to the Rating Agencies, with regard to nonconsolidation of the assets of the Successor
Borrower with those of its Affiliates by a bankruptcy court.

 

		(vi)	Unless waived by Lender, an opinion of counsel for Borrower, in form and substance satisfactory to
Lender, confirming each of the following:

 

		(A)	If, as of the Defeasance Closing Date, the Note is held by a REMIC trust, (1) the Defeasance has been
effected in accordance with the requirements of Treasury Regulation Section 1.860G-2(a)(8) (as such regulation may be modified,
amended or replaced from time to time), (2) the qualification and status of the REMIC trust as a REMIC will not be adversely affected
or impaired as a result of the Defeasance, and (3) the REMIC trust will not incur a tax under Section 860G(d) of the Tax Code
as a result of the Defeasance.

 

		(B)	The Defeasance will not result in a “sale or exchange” of the Note within the meaning
of Section 1001(c) of the Tax Code and the temporary and final regulations promulgated thereunder.

  

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		(vii)	Unless waived by Lender, a written certificate from an independent certified public accounting firm
(reasonably acceptable to Lender), confirming that the Defeasance Collateral will generate cash sufficient to make all Scheduled
Debt Payments as they fall due under the Note, including full payment due on the Note on the Maturity Date.

 

		(viii)	Lender’s form of a pledge and security agreement (“Pledge Agreement”) and
financing statements which pledge and create a first priority security interest in the Defeasance Collateral in favor of Lender.

 

		(ix)	Lender’s form of a transfer and assumption agreement (“Transfer and Assumption Agreement”),
whereupon Borrower and any Guarantor (in each case, subject to satisfaction of all requirements under this Loan Agreement) will
be relieved from liability in connection with the Loan (other than any liability under Sections 6.12 and 10.02 for events
that occur prior to the Defeasance Closing Date, whether discovered before or after the Defeasance Closing Date) and Successor
Borrower will assume all remaining obligations.

 

		(x)	Forms of all documents necessary to release the Mortgaged Property from the Liens created by the Security
Instrument and related UCC financing statements (collectively, “Release Instruments”), each in appropriate form
required by the state in which the Mortgaged Property is located.

 

		(xi)	Such other opinions, certificates, documents or instruments as Lender may reasonably request.

 

		(g)	Borrower will deliver to Lender on or prior to the Defeasance Closing Date each of the following:

 

		(i)	The Defeasance Collateral, which meets all of the following requirements:

 

		(A)	It is owned by Borrower, free and clear of all Liens and claims of third-parties.

 

		(B)	It is in an amount to provide for (A) redemption payments to occur prior, but as close as possible,
to all successive Installment Due Dates occurring under the Note after the Defeasance Closing Date, and (B) deliver redemption
proceeds at least equal to the amount of principal and interest due on the Note on each Installment Due Date including full payment
due on the Note on the Maturity Date (“Scheduled Debt Payments”).

 

		(C)	It is arranged such that redemption payments received from the Defeasance Collateral are paid directly
to Lender to be applied on account of the Scheduled Debt Payments.

  

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		(D)	Unless otherwise agreed in writing by Lender, the pledge of the Defeasance Collateral will be effected
through the book-entry facilities of a qualified securities intermediary designated by Lender in conformity with all applicable
laws.

 

		(ii)	All accrued and unpaid interest and all other sums due under the Note, this Loan Agreement and under
the other Loan Documents, including all amounts due under Section 11.12(i), up to the Defeasance Closing Date.

 

		(h)	If Lender permits Borrower to designate the Successor Borrower, then Borrower will, at Borrower’s
expense, designate or establish an accommodation borrower (“Successor Borrower”) satisfactory to Lender (or
Lender, at its option, may designate the Successor Borrower) which satisfies Lender’s then current requirements for a “Single
Purpose Entity” to assume at the time of Defeasance ownership of the Defeasance Collateral and liability for all of Borrower’s
obligations under the Pledge Agreement and the Loan Documents (to the extent that liability thereunder survives release of the
Lien of the Security Instrument). Borrower will pay to Successor Borrower a fee of $1,000.00 as consideration of Successor Borrower’s
assumption of Borrower’s obligations under the Loan Documents. Notwithstanding any contrary provision in this Loan Agreement,
no Transfer Fee is payable to Lender upon a Transfer of the Loan in accordance with this Section.

 

		(i)	Borrower will pay all reasonable costs and expenses incurred by Lender in connection with the Defeasance
in full on or prior to the Defeasance Closing Date, which payment is required prior to Lender’s issuance of the Release Instruments
and whether or not Defeasance is completed. Such expenses include the following:

 

		(A)	All fees, costs and expenses incurred by Lender and its agents in connection with the Defeasance (including
reasonable Attorneys’ Fees and Costs for the review and preparation of the Pledge Agreement and of the other materials described
in this Loan Agreement and any related documentation, and any servicing fees, Rating Agencies’ fees or other costs related
to the Defeasance).

 

		(B)	Reasonable Attorneys’ Fees and Costs.

 

		(C)	A processing fee to cover Lender’s administrative costs to process Borrower’s Defeasance
request.

 

Lender reserves
the right to require that Borrower post a deposit to cover costs which Lender reasonably anticipates will be incurred.

  

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		11.13	Lender’s Rights to Sell or Securitize. Borrower acknowledges that Lender, and each successor
to Lender’s interest, may (without prior Notice to Borrower or Borrower’s prior consent), sell or grant participations
in the Loan (or any part of the Loan), sell or subcontract the servicing rights related to the Loan, securitize the Loan or include
the Loan as part of a trust. Borrower, at its expense, agrees to cooperate with all reasonable requests of Lender in connection
with any of the foregoing including executing any financing statements or other documents deemed necessary by Lender or its transferee
to create, perfect or preserve the rights and interest to be acquired by such transferee, providing any updated financial information
with appropriate verification through auditors letters, delivering revised organizational documents and counsel opinions satisfactory
to the Rating Agencies, executed amendments to the Loan Documents, and review information contained in a preliminary or final private
placement memorandum, prospectus, prospectus supplements or other Disclosure Document, and providing a mortgagor estoppel certificate
and such other information about Borrower, any SPE Equity Owner, any Guarantor, any Property Manager or the Mortgaged Property
as Lender may require for Lender’s offering materials.

 

		11.14	Cooperation with Rating Agencies and Investors. Borrower covenants and agrees that if Lender
decides to include the Loan as an asset of a Secondary Market Transaction, Borrower will (a) at Lender’s request, meet
with representatives of the Rating Agencies and/or investors to discuss the business and operations of the Mortgaged Property,
and (b) permit Lender or its representatives to provide related information to the Rating Agencies and/or investors, and (c) cooperate
with the reasonable requests of the Rating Agencies and/or investors in connection with all of the foregoing.

 

		11.15	Time is of the Essence. Time is of the essence with
respect to each covenant of this Loan Agreement.

 

		ARTICLE XII	DEFINITIONS.

 

The following terms, when used in this Loan
Agreement (including when used in the recitals), will have the following meanings:

 

“Affiliate” of any Person
means (i) any other Person which, directly or indirectly, is in Control of, is under the Control of, or is under common Control
with, such Person; (ii) any other Person who is a director or officer of (A) such Person, (B) any subsidiary of such Person, or
(C) any Person described in clause (i) of this definition; or (iii) any corporation, limited liability company or partnership which
has as a director any Person described in Section (ii) of this definition.

 

“Aggregate
Carrier Exposure” means:

 

		(i)	For each individual carrier providing Hazard Insurance, one of the following:

 

		(A)	The sum of the required building coverage limits and required business income/rental value Insurance
if such coverage is provided by specific Insurance or a policy covering only the Mortgaged Property.

 

		(B)	The blanket Insurance or master program limit if such coverage is provided by a Blanket Insurance
Policy or master program from a single carrier.

  

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		(C)	The total limit provided by the carrier in all layers in which the carrier
participates if such coverage is provided by a Blanket Insurance Policy or master program with more than one carrier participating
with layered limits.

 

		(ii)	For each individual carrier providing liability Insurance pursuant to Section 6.10(a)(ii) or
as otherwise required by Lender, one of the following:

 

		(A)	The total aggregate limits (general liability plus excess/umbrella)
if such coverage is provided by specific Insurance or a policy covering only the Mortgaged Property.

 

		(B)	The total aggregate limits (general liability plus excess/umbrella)
if such coverage is provided by liability Insurance for multiple properties or a master program from
a single carrier.

 

		(C)	The total limit provided by the carrier in all layers in which the carrier
participates if such coverage is provided by an individual policy, liability Insurance policy
for multiple properties or a master program with more than one carrier participating with layered limits Blanket Insurance
Policy or master program with more than one carrier participating with layered limits.

 

“Approved Seller/Servicer”
is defined in Section 11.11(b).

 

“Assignment of Management Agreement”
means the Assignment of Management Agreement and Subordination of Management Fees of even date herewith among Borrower, Lender
and Property Manager, including all schedules, riders, allonges and addenda, as such Assignment of Management Agreement may be
amended from time to time.

 

“Attorneys’ Fees and Costs”
means (i) fees and out of pocket costs of Lender’s and Loan Servicer’s attorneys, as applicable, including costs of
Lender’s and Loan Servicer’s in-house counsel, support staff costs, costs of preparing for litigation, computerized
research, telephone and facsimile transmission expenses, mileage, deposition costs, postage, duplicating, process service, videotaping
and similar costs and expenses; (ii) costs and fees of expert witnesses, including appraisers; (iii) investigatory fees; and (iv)
costs for any opinion required by Lender pursuant to the terms of the Loan Documents.

 

“Bankruptcy Code” means
the United States Bankruptcy Code, 11 U.S.C. Section 101 et seq., as amended from time to time.

 

“Blanket Insurance Policy”
is defined in Section 6.10(h).

 

“Borrower” means all Persons
identified as “Borrower” in the first paragraph of this Loan Agreement, together with their successors and assigns.

 

“Borrower Information”
is defined in Section 10.02(d).

  

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“Borrower
Principal” means any of the following:

 

		(i)	Any general partner of Borrower
(if Borrower is a partnership).

 

		(ii)	Any manager or managing member of Borrower (if Borrower is
a limited liability company).

 

		(iii)	Any Person (limited partner, member or shareholder) with a collective direct or indirect equity interest
in Borrower equal to or greater than 25%.

 

		(iv)	Any Guarantor of all or any portion of the Loan or of any obligations of Borrower under the Loan Documents.

 

“Borrower Proof of Loss Threshold”
means $88,000.00.

 

“Borrower Proof of Loss Maximum”
means $352,000.00.

 

“Business Day” means any
day other than a Saturday, a Sunday, or any other day on which Lender or the national banking associations are not open for business.

 

“Cap Agreement” means
any interest rate cap agreement, interest rate swap agreement or other interest rate-hedging contract or agreement obtained by
Borrower from a Cap Provider as a requirement of any Loan Document or as a condition of Lender’s making the Loan.

 

“Cap Collateral” means
all of the following:

 

		(i)	The Cap Agreement.

 

		(ii)	The Cap Payments.

 

		(iii)	All rights of Borrower under any Cap Agreement and all rights of Borrower to all Cap Payments, including
contract rights and general intangibles, whether existing now or arising after the date of this Loan Agreement.

 

		(iv)	All rights, liens and security interests or guaranties granted by a Cap Provider or any other Person
to secure or guaranty payment of any Cap Payments whether existing now or granted after the date of this Loan Agreement.

 

		(v)	All documents, writings, books, files, records and other documents arising from or relating to any
of the foregoing, whether existing now or created after the date of this Loan Agreement.

 

		(vi)	All cash and non-cash proceeds and products of (ii) through (v) of this definition.

 

“Cap Payment(s)” means
any and all monies payable pursuant to any Cap Agreement by a Cap Provider.

 

“Cap Provider” means
the interest rate cap provider or other counterparty to a Cap Agreement or any guarantor of the obligations of any such cap provider
or counterparty.

  

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“Capital Replacement” means
the replacement of those items listed on Exhibit F and such other replacements of equipment, major components or capital
systems related to the Improvements as may be approved in writing or required by Lender.

 

“Capped Interest Rate”
is defined in the Note.

 

“Claim” is defined in Section 10.02(f).

 

“Clean Site Assessment”
is defined in Section 7.05(b)(i).

 

“Closing Date” means the
date on which Lender disburses the proceeds of the Loan to or for the account of Borrower.

 

“Commitment Letter” means
the fully executed commitment letter or early rate lock application between Lender and Borrower issued in connection with the Loan,
as such document may have been modified, amended or extended.

 

“Completion Date” means
December 31, 3012, or such other date(s) as may be specified for particular Repairs in Exhibit C, as such date may be extended.

 

“Condemnation” is defined
in Section 6.11(a).

 

“Control” means to possess,
directly or indirectly, the power to direct or cause the direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise, including the power to elect a majority of the directors or trustees
of a corporation or trust, as the case may be.

 

“Cut-off Date” is defined
in the Note.

 

“Default Rate” is defined
in the Note.

 

“Defeasance” is defined
in Section 11.12.

 

“Defeasance Closing Date”
is defined in Section 11.12(b).

 

“Defeasance Collateral”
means (i) a Freddie Mac Debt Security, (ii) a Fannie Mae Debt Security, (iii) U.S. Treasury Obligations, or (iv) FHLB Obligations.

 

“Defeasance Fee” is defined
in Section 11.12(c).

 

“Defeasance Notice” is
defined in Section 11.12(b).

 

“Defeasance Period” is
defined in the Note.

 

“Designated Entity for
Transfers” means each entity so identified in Exhibit I, and that entity’s successors and permitted assigns.

 

“Disclosure Document” is
defined in Section 11.08.

 

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“Eligible Account” means
an identifiable account which is separate from all other funds held by the holding institution that is either (i) an account or
accounts maintained with the corporate trust department of a federal or state-chartered depository institution or trust company
which complies with the definition of Eligible Institution, or (ii) a segregated trust account or accounts maintained with the
corporate trust department of a federal or state chartered depository institution or trust company acting in its fiduciary capacity
which, in the case of a state chartered depository institution or trust company is subject to regulations substantially similar
to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision
or examination by federal and state authority. An Eligible Account will not be evidenced by a certificate of deposit, passbook
or other instrument.

 

“Eligible Institution”
means a federal or state chartered depository institution or trust company insured by the Federal Deposit Insurance Corporation,
the short term unsecured debt obligations or commercial paper of which are rated at least A-1 by Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc., P-1 by Moody’s Investors Service, Inc. and F-3 by Fitch, Inc. in
the case of accounts in which funds are held for 30 days or less or, in the case of letters of credit or accounts in which
funds are held for more than 30 days, the long term unsecured debt obligations of which are rated at least “A”
by Fitch, Inc. and Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and “A2”
by Moody’s Investors Service, Inc. If at any time an Eligible Institution does not meet the required rating, the Loan Servicer
must move the Eligible Account within 30 days of such event to an appropriately rated Eligible Institution.

 

“Environmental Inspections”
is defined in Section 6.12(e).

 

“Environmental Permit”
means any permit, license, or other authorization issued under any Hazardous Materials Law with respect to any activities or businesses
conducted on or in relation to the Mortgaged Property.

 

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

 

“Event of Default” means
the occurrence of any event listed in Section 9.01.

 

“External Cap Agreement Reserve Fund”
means the account established pursuant to Section 4.07, if applicable, to pay for the cost of a Replacement Cap Agreement.

 

“Fannie Mae Debt Security”
means any non-callable bond, debenture, note, or other similar debt obligation issued by the Federal National Mortgage Association.

 

“FHLB Obligations”
mean direct, non-callable and non-redeemable securities issued, or fully insured as to payment, by the Federal Home Loan Bank.

 

 

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“Fixtures” means
all property owned by Borrower which is attached to the Land or the Improvements so as to constitute a fixture under applicable
law, including: machinery, equipment, engines, boilers, incinerators and installed building materials; systems and equipment for
the purpose of supplying or distributing heating, cooling, electricity, gas, water, air or light; antennas, cable, wiring and conduits
used in connection with radio, television, security, fire prevention or fire detection or otherwise used to carry electronic signals;
telephone systems and equipment; elevators and related machinery and equipment; fire detection, prevention and extinguishing systems
and apparatus; security and access control systems and apparatus; plumbing systems; water heaters, ranges, stoves, microwave ovens,
refrigerators, dishwashers, garbage disposers, washers, dryers and other appliances; light fixtures, awnings, storm windows and
storm doors; pictures, screens, blinds, shades, curtains and curtain rods; mirrors; cabinets, paneling, rugs and floor and wall
coverings; fences, trees and plants; swimming pools; and exercise equipment.

 

“Freddie Mac”
means the Federal Home Loan Mortgage Corporation.

 

“Freddie Mac Debt Security”
means any non-callable bond, debenture, note, or other similar debt obligation issued by Freddie Mac.

 

“Freddie Mac Web Site”
means the web site of Freddie Mac, located at www.freddiemac.com.

 

“GAAP” means
generally accepted accounting principles.

 

“Governmental Authority”
means any board, commission, department, agency or body of any municipal, county, state or federal governmental unit, or any subdivision
of any of them, that has or acquires jurisdiction over the Mortgaged Property, or the use, operation or improvement of the Mortgaged
Property, or over Borrower.

 

“Guarantor”
means the Person(s) required by Lender to guaranty all or a portion of Borrower’s obligations under the Loan Documents, as
set forth in the Guaranty. The required Guarantors are set forth in Exhibit I.

 

“Guaranty” means
the Guaranty executed by Guarantor and/or any replacement or supplemental guaranty executed pursuant to the terms of this Loan
Agreement.

 

“Hazard Insurance”
is defined in Section 6.10(a).

 

“Hazardous Materials”
means petroleum and petroleum products and compounds containing them, including gasoline, diesel fuel and oil; explosives; flammable
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; any substance the presence of which on the Mortgaged Property is prohibited by any Governmental
Authority; any substance that requires special handling and any other material or substance now or in the future that (i) is defined
as a “hazardous substance,” “hazardous material,” “hazardous waste,” “toxic substance,”
“toxic pollutant,” “contaminant,” or “pollutant” by or within the meaning of any Hazardous
Materials Law, or (ii) is regulated in any way by or within the meaning of any Hazardous Materials Law.

  

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“Hazardous Materials Law”
and “Hazardous Materials Laws” means any and all federal, state and local laws, ordinances, regulations and
standards, rules, policies and other governmental requirements, administrative rulings and court judgments and decrees in effect
now or in the future, including all amendments, that relate to Hazardous Materials or the protection of human health or the environment
and apply to Borrower or to the Mortgaged Property. Hazardous Materials Laws include the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. Section 9601, et seq., the Resource Conservation and Recovery Act of 1976, 42 U.S.C.
Section 6901, et seq., the Toxic Substance Control Act, 15 U.S.C. Section 2601, et seq., the Clean Water Act, 33 U.S.C.
Section 1251, et seq., and the Hazardous Materials Transportation Act, 49 U.S.C. Section 5101 et seq., and their state
analogs.

 

“HVAC
System” is defined in Section 6.10(a)(v).

 

“Immediate Family Members”
means a Person’s spouse, parent, child (including stepchild), grandchild (including step-grandchild) or sibling.

 

“Imposition Reserve Deposits”
is defined in Section 4.02(a).

 

“Impositions”
is defined in Section 4.02(a).

 

“Improvements”
means the buildings, structures and improvements now constructed or at any time in the future constructed or placed upon the Land,
including any future alterations, replacements and additions.

 

“Indebtedness”
means the principal of, interest at the fixed or variable rate set forth in the Note on, and all other amounts due at any time
under, the Note, this Loan Agreement or any other Loan Document, including prepayment premiums, late charges, default interest,
and advances as provided in Section 9.02 to protect the security of the Security Instrument.

 

“Indemnified Party/ies”
is defined in Section 10.02(d).

 

“Indemnitees”
is defined in Section 10.02(a).

 

“Inspection Fee”
means a fee payable to Lender or Loan Servicer for performing any inspection required by this Agreement in an amount not to exceed
$500.00 per inspection.

 

“Insurance”
means Hazard Insurance, liability insurance and all other insurance that Lender requires Borrower to maintain pursuant to this
Loan Agreement.

 

“Intercreditor Agreement”
is defined in Section 11.11(b)(xi).

 

“Investment Fee”
means a one time fee for establishing the (i) Replacement Reserve Fund in the amount of $250.00, and (ii) Repair Reserve Fund in
the amount of $250.00.

 

“Issuer Group”
is defined in Section 10.02(d).

 

“Issuer Person”
is defined in Section 10.02(d).

 

“Land” means
the land described in Exhibit A.

 

“Leases” means
all present and future leases, subleases, licenses, concessions or grants or other possessory interests now or hereafter in force,
whether oral or written, covering or affecting the Mortgaged Property, or any portion of the Mortgaged Property (including proprietary
leases or occupancy agreements if Borrower is a cooperative housing corporation), and all modifications, extensions or renewals.

  

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“Lender” means
the entity identified as “Lender” in the first paragraph of this Loan Agreement, or any subsequent holder of the Note.

 

“Lender’s Discretion”
means Lender’s reasonable discretion unless otherwise set forth in this Loan Agreement.

 

“Letter of Credit”
means any letter of credit required under the terms of this Loan Agreement.

 

“LIBOR Index Rate,” if
applicable, is defined in the Note.

 

“Lien” means
any mortgage, deed of trust, deed to secure debt, security interest or other lien or encumbrance on the Mortgaged Property.

 

“Loan” is defined
on Page 1 of this Loan Agreement.

 

“Loan Agreement”
means this Multifamily Loan and Security Agreement.

 

“Loan Application”
is defined in Section 5.16(a).

 

“Loan Documents”
means the Note, the Security Instrument, this Loan Agreement, all guaranties, all indemnity agreements, all collateral agreements,
UCC filings, O&M Programs, the MMP and any other documents now or in the future executed by Borrower, any Guarantor or any
other Person in connection with the Loan evidenced by the Note, as such documents may be amended from time to time.

 

“Loan Servicer”
means the entity that from time to time is designated by Lender to collect payments and deposits and receive Notices under the
Note, the Security Instrument, this Loan Agreement and any other Loan Document, and otherwise to service the Loan evidenced by
the Note for the benefit of Lender. Unless Borrower receives Notice to the contrary, the Loan Servicer is the entity identified
as “Lender” in the first paragraph of this Loan Agreement.

 

“Lockout Period”
is defined in the Note.

 

“Manager”
or “Managers” means a Person who is named or designated as a manager or managing member or otherwise
acts in the capacity of a manager or managing member of a limited liability company in a limited liability company agreement or
similar instrument under which the limited liability company is formed or operated.

 

“Margin,” if
applicable, is defined in the Note.

 

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“Material Adverse Change”
means any set of circumstances or events which, in Lender’s Discretion would have or is then reasonably expected to have
a Material Adverse Effect on (i) the validity or enforceability of this Loan Agreement or the other Loan Documents taken as a whole,
(ii) the ability of Borrower to duly and punctually pay the Indebtedness or perform its obligations, (iii) the ability of Lender
to enforce its legal remedies pursuant to this Loan Agreement or the other Loan Documents taken as a whole, including by realizing
upon any collateral or any guaranty, (iv) the business prospects or financial condition of Borrower or any Guarantor, (v) the financial
performance or market value of the Mortgaged Property, or (vi) the compliance of the Mortgaged Property with any law dealing with
the use, ownership or operation of the Mortgaged Property or any law, the noncompliance with which could reasonably be expected
to have a Material Adverse Effect on the financial performance or market value of the Mortgaged Property.

 

“Material Adverse Effect”
means a significant detrimental effect on (i) the Mortgaged Property, (ii) the business, prospects, profits, operations
or condition (financial or otherwise) of Borrower, (iii) the enforceability, validity, perfection or priority of the Lien
of any Loan Document, or (iv) the ability of Borrower to perform any obligations under any Loan Document.

 

“Maturity Date”
means the Scheduled Maturity Date, as defined in the Note.

 

“MMP” means
a moisture management plan to control water intrusion and prevent the development of Mold or moisture at the Mortgaged Property
throughout the term of this Loan Agreement.

 

“Modified Non-Residential
Lease” means an extension or modification of any Non-Residential Lease, which Non-Residential Lease was in existence
as of the date of this Loan Agreement.

 

“Mold” means
mold, fungus, microbial contamination or pathogenic organisms.

 

“Mortgaged Property”
means all of Borrower’s present and future right, title and interest in and to all of the following:

 

		(i)	The Land, or, if Borrower’s interest in the Land is pursuant to a Ground Lease, the Ground Lease
and the Leasehold Estate.

 

		(ii)	The Improvements.

 

		(iii)	The Fixtures.

 

		(iv)	The Personalty.

 

		(v)	All current and future rights, including air rights, development rights, zoning rights and other similar
rights or interests, easements, tenements, rights of way, strips and gores of land, streets, alleys, roads, sewer rights, waters,
watercourses and appurtenances related to or benefiting the Land or the Improvements, or both, and all rights-of-way, streets,
alleys and roads which may have been or may in the future be vacated.

 

		(vi)	All proceeds paid or to be paid by any insurer of the Land, the Improvements, the Fixtures, the Personalty
or any other part of the Mortgaged Property, whether or not Borrower obtained the Insurance pursuant to Lender’s requirement.

 

 

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		(vii)	All awards, payments and other compensation made or to be made by any municipal, state or federal
authority with respect to the Land or the Leasehold Estate, as applicable, the Improvements, the Fixtures, the Personalty or any
other part of the Mortgaged Property, including any awards or settlements resulting from Condemnation proceedings or the total
or partial taking of the Land, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property under
the power of eminent domain or otherwise and including any conveyance in lieu thereof.

 

		(viii)	All contracts, options and other agreements for the sale of the Land, or the Leasehold Estate, as
applicable, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property entered into by Borrower
now or in the future, including cash or securities deposited to secure performance by parties of their obligations.

 

		(ix)	All proceeds from the conversion, voluntary or involuntary, of any of the items described in items
(i) through (viii) of this definition, into cash or liquidated claims, and the right to collect such proceeds.

 

		(x)	All Rents and Leases.

 

		(xi)	All earnings, royalties, accounts receivable, issues and profits from the Land, the Improvements or
any other part of the Mortgaged Property, and all undisbursed proceeds of the Loan.

 

		(xii)	All Imposition Reserve Deposits.

 

		(xiii)	All refunds or rebates of Impositions by any Governmental Authority or insurance company (other than
refunds applicable to periods before the real property tax year in which this Loan Agreement is dated).

 

		(xiv)	All tenant security deposits which have not been forfeited by any tenant under any Lease and any bond
or other security in lieu of such deposits.

 

		(xv)	All names under or by which any of the Mortgaged Property may be operated or known, and all trademarks,
trade names and goodwill relating to any of the Mortgaged Property.

 

		(xvi)	If required by the terms of Section 4.05, all rights under the Letter of Credit and the Proceeds,
as such Proceeds may increase or decrease from time to time.

 

		(xvii)	If the Note provides for interest to accrue at an adjustable or variable rate and there is a Cap Agreement,
the Cap Collateral.

 

“New Non-Residential
Lease” is any Non-Residential Lease not in existence as of the date of this Loan Agreement.

 

“NFIP”
is defined in Section 6.10(a)(iv).

 

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“Non-Residential Lease”
is a Lease of a portion of the Mortgaged Property to be used for non-residential purposes.

 

“Note” means
the Multifamily Note (including any Amended and Restated Note, Consolidated, Amended and Restated Note, or Extended and Restated
Note) executed by Borrower in favor of Lender and dated as of the date of this Loan Agreement, including all schedules, riders,
allonges and addenda, as such Multifamily Note may be amended, modified and/or restated from time to time.

 

“Notice” or
“Notices” means all notices, demands and other communication required under the Loan Documents, provided in
accordance with the requirements of Section 11.03.

 

“O&M Program”
is defined in Section 6.12(c) and consists of the following: asbestos

 

“Person”
means any natural person, sole proprietorship, corporation, general partnership, limited partnership, limited liability company,
limited liability partnership, limited liability limited partnership, joint venture, association, joint stock company, bank, trust,
estate, unincorporated organization, any federal, state, county or municipal government (or any agency or political subdivision
thereof), endowment fund or any other form of entity.

 

“Personalty”
means all of the following:

 

		(i)	Accounts (including deposit accounts) of Borrower related to the Mortgaged Property.

 

		(ii)	Equipment and inventory owned by Borrower, which are used now or in the future in connection with
the ownership, management or operation of the Land or Improvements or are located on the Land or Improvements, including furniture,
furnishings, machinery, building materials, goods, supplies, tools, books, records (whether in written or electronic form) and
computer equipment (hardware and software).

 

		(iii)	Other tangible personal property owned by Borrower which is used now or in the future in connection
with the ownership, management or operation of the Land or Improvements or is located on the Land or in the Improvements, including
ranges, stoves, microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers and other appliances (other than
Fixtures).

 

		(iv)	Any operating agreements relating to the Land or the Improvements.

 

		(v)	Any surveys, plans and specifications and contracts for architectural, engineering and construction
services relating to the Land or the Improvements.

 

		(vi)	All other intangible property, general intangibles and rights relating to the operation of, or used
in connection with, the Land or the Improvements, including all governmental permits relating to any activities on the Land and
including subsidy or similar payments received from any sources, including a Governmental Authority.

 

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		(vii)	Any rights of Borrower in or under any Letter of Credit.

 

“Pledge Agreement”
is defined in Section 11.12(f)(viii).

 

“Preapproved Intrafamily
Transfer” is defined in Section 7.04.

 

“Prepayment Premium Period”
is defined in the Note.

 

“Prior Lien”
means a pre-existing mortgage, deed of trust or other Lien encumbering the Mortgaged Property.

 

“Proceeding”
means, whether voluntary or involuntary, any case, proceeding or other action against Borrower or any SPE Equity Owner under any
existing or future law of any jurisdiction relating to bankruptcy, insolvency, reorganization or relief of debtors.

 

“Proceeds” means
the cash obtained by a draw on a Letter of Credit.

 

“Prohibited Activity or
Condition” means each of the following:

 

		(i)	The presence, use, generation, release, treatment, processing, storage (including storage in above-ground
and underground storage tanks), handling or disposal of any Hazardous Materials on or under the Mortgaged Property.

 

		(ii)	The transportation of any Hazardous Materials to, from or across the Mortgaged Property.

 

		(iii)	Any occurrence or condition on the Mortgaged Property, which occurrence or condition is or may be
in violation of Hazardous Materials Laws.

 

		(iv)	Any violation of or noncompliance with the terms of any Environmental Permit with respect to the Mortgaged
Property.

 

		(v)	Any violation or noncompliance with the terms of any O&M Program.

 

However, the term “Prohibited
Activity or Condition” expressly excludes lawful conditions permitted by an O&M Program or the safe and lawful use and
storage of quantities of (i) pre-packaged supplies, cleaning materials and petroleum products customarily used in the operation
and maintenance of comparable multifamily properties, (ii) cleaning materials, personal grooming items and other items sold in
pre-packaged containers for consumer use and used by tenants and occupants of residential dwelling units in the Mortgaged Property,
and (iii) petroleum products used in the operation and maintenance of motor vehicles from time to time located on the Mortgaged
Property’s parking areas, so long as all of the foregoing are used, stored, handled, transported and disposed of in compliance
with Hazardous Materials Laws.

 

“Property Jurisdiction”
means the jurisdiction in which the Land is located.

 

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“Property Manager”
means Bridge Real Estate Group, LLC, a Florida limited liability company, d/b/a Waypoint Management, and Waypoint Residential,
LLC, a Delaware limited liability company, both individually and collectively.

 

“Property Seller”
is defined in Section 5.24.

 

“Public Fund/REIT Securities”
is defined in Section 7.03(c).

 

“Rating Agencies”
means Fitch, Inc., Moody’s Investors Service, Inc., or Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., or any successor entity of the foregoing, or any other nationally recognized statistical rating organization.

 

“Release Instruments”
is defined in Section 11.12(f)(x).

 

“Remedial Work”
is defined in Section 6.12(f).

 

“Rent(s)” means
all rents (whether from residential or non-residential space), revenues and other income of the Land or the Improvements, parking
fees, laundry and vending machine income and fees and charges for food, health care and other services provided at the Mortgaged
Property, whether now due, past due or to become due, and deposits forfeited by tenants, and, if Borrower is a cooperative housing
corporation or association, maintenance fees, charges or assessments payable by shareholders or residents under proprietary leases
or occupancy agreements, whether now due, past due or to become due.

 

“Rent Schedule”
means a written schedule for the Mortgaged Property showing the name of each tenant, and for each tenant, the space occupied, the
lease expiration date, the rent payable for the current month, the date through which rent has been paid, and any related information
requested by Lender.

 

“Repairs” means
the repairs to be made to the Mortgaged Property, as described on the Repair Schedule of Work or as otherwise required by Lender
in accordance with this Loan Agreement.

 

“Replacement Cap Agreement”
means any replacement Cap Agreement provided to Lender pursuant to Section 4.07(c). The Replacement Cap Agreement must
satisfy each of the following requirements:

 

		(i)	It must have an effective date not later than the day following the last day of the term of the
Cap Agreement that preceded it, and may not expire before the earlier of (A) the 5th anniversary of the effective date of such
Replacement Cap Agreement or (B) the Maturity Date.

 

		(ii)	It must obligate the Cap Provider, which Cap Provider must be acceptable to Lender, to make monthly
payments to Lender equal to the excess of (A) the actual interest on a notional principal amount of the Indebtedness over
(B) interest on that notional amount at a specified fixed cap rate.

 

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“Replacement
Cost” means the estimated replacement cost of the Improvements, Fixtures, and Personalty (or, when used in reference
to a property that is not the Mortgaged Property, all improvements, fixtures, and personalty located on such property), excluding
any deduction for depreciation, all as determined annually by Borrower using customary methodology and sources of information acceptable
to Lender in Lender’s Discretion. Replacement Cost will not include the cost to reconstruct foundations or site improvements,
such as driveways, parking lots, sidewalks, and landscaping.

 

“Required DSCR”
means, with respect to a Supplemental Loan, (i) if the Senior Indebtedness bears interest at a fixed rate, 1.25:1, or (ii) if
the Senior Indebtedness bears interest at an adjustable rate, 1.15:1.

 

“Required LTV”
means 64%. 

 

“Reserve Fund”
means each account established for Imposition Reserve Deposits, the Replacement Reserve Fund, the Repair Reserve Fund (if any),
the External Cap Agreement Reserve Fund (if any), the Rental Achievement Fund (if any), and any other account established  pursuant
to Article IV of this Loan Agreement.

 

“Restoration”
is defined in Section 6.10(i).

 

“Scheduled Debt Payments”
is defined in Section 11.12(g)(i)(B).

 

“Secondary Market Transaction”
means (i) any sale or assignment of this Loan Agreement, the Note and the other Loan Documents to one or more investors as
a whole loan, (ii) a participation of the Loan to one or more investors, (iii) any deposit of this Loan Agreement, the
Note and the other Loan Documents with a trust or other entity which may sell certificates or other instruments to investors evidencing
an ownership interest in the assets of such trust or other entity, or (iv) any other sale, assignment or transfer of the Loan
or any interest in the Loan to one or more investors.

 

“Securitization”
means when the Note or any portion of the Note is assigned to a REMIC trust.

 

“Security Instrument”
means the mortgage, deed of trust, deed to secure debt or other similar security instrument encumbering the Mortgaged Property
and securing Borrower’s performance of its Loan obligations, including Borrower’s obligations under the Note and this
Loan Agreement (including any Amended and Restated Security Instrument, Consolidation, Modification and Extension Agreement, Extension
and Modification Agreement or similar agreement or instrument amending and restating existing security instruments).

 

“Senior Indebtedness”
means, for a Supplemental Loan, if any, the Indebtedness evidenced by each Senior Note and secured by each Senior Instrument for
the benefit of each Senior Lender.

 

“Senior Instrument”
– Not applicable.

 

“Senior Lender”
means each holder of a Senior Note.

 

“Senior Loan Documents”
means, for a Supplemental Loan, if any, all documents relating to each loan evidenced by a Senior Note.

 

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“Senior Note”
means, for a Supplemental Loan, if any, each Multifamily Note secured by a Senior Instrument.

 

“Servicing Arrangement”
is defined in Section 11.06(b).

 

“SFHA”
is defined in Section 6.10(a)(iv).

 

“Single
Purpose Entity” is defined in Section 6.13(a).

“Site Assessment” means an environmental
engineering report for the Mortgaged Property prepared at Borrower’s expense by an engineer engaged by Borrower, or by Lender
on behalf of Borrower, and approved by Lender, and in a manner reasonably satisfactory to Lender, based upon an investigation relating
to and making appropriate inquiries concerning the existence of Hazardous Materials on or about the Mortgaged Property, and the
past or present discharge, disposal, release or escape of any such substances, all consistent with ASTM Standard E1527-93 (or any
successor thereto published by ASTM) and good customary and commercial practice.

 

“SPE Equity Owner”
is not applicable. Borrower will not be required to maintain an SPE Equity Owner in its organizational structure during the term
of the Loan and all references to SPE Equity Owner in this Loan Agreement and in the Note will be of no force or effect.

 

“Successor Borrower”
is defined in Section 11.12(h).

 

“Supplemental Indebtedness”
the Indebtedness evidenced by the Supplemental Note and secured by the Supplemental Instrument for the benefit of Supplemental
Lender, if any.

 

“Supplemental Instrument”
means, for a Supplemental Loan, if any, the Security Instrument executed to secure the Supplemental Note.

 

“Supplemental Lender”
means, for a Supplemental Loan, if any, the Approved Seller/Servicer named in the Supplemental Instrument and its successors and/or
assigns.

 

“Supplemental Loan”
means a loan that is subordinate to the Senior Indebtedness.

 

“Supplemental Loan Documents”
means, for a Supplemental Loan, if any, all documents relating to the loan evidenced by the Supplemental Note.

 

“Supplemental Mortgage
Product” is defined in Section 11.11(a).

 

“Supplemental Note”
means, for a Supplemental Loan, if any, the Multifamily Note secured by the Supplemental Instrument.

 

“Tax Code” means
the Internal Revenue Code of the United States, 26 U.S.C. Section 1 et seq., as amended from time to time.

 

“Taxes” means
all taxes, assessments, vault rentals and other charges, if any, whether general, special or otherwise, including all assessments
for schools, public betterments and general or local improvements, which are levied, assessed or imposed by any public authority
or quasi-public authority, and which, if not paid, will become a Lien on the Land or the Improvements.

 

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“Third Party Information”
is defined in Section 10.02(d).

 

“Transfer” means
any of the following:

 

		(i)	A sale, assignment, transfer or other disposition or divestment of any interest in Borrower or the
Mortgaged Property (whether voluntary, involuntary or by operation of law).

 

		(ii)	The granting, creating or attachment of a Lien, encumbrance or security interest (whether voluntary,
involuntary or by operation of law).

 

		(iii)	The issuance or other creation of an ownership interest in a legal entity, including a partnership
interest, interest in a limited liability company or corporate stock.

 

		(iv)	The withdrawal, retirement, removal or involuntary resignation of a partner in a partnership or a
member or Manager in a limited liability company.

 

		(v)	The merger, dissolution, liquidation, or consolidation of a legal entity or the reconstitution of
one type of legal entity into another type of legal entity.

 

		(vi)	A change of the Guarantor.

 

For purposes of defining the term
“Transfer,” the term “partnership” means a general partnership or a limited partnership, and the term “partner”
means a general partner or a limited partner.

 

“Transfer” does not
include any of the following:

 

		(i)	A conveyance of the Mortgaged Property at a judicial or non-judicial foreclosure sale under the Security
Instrument.

 

		(ii)	The Mortgaged Property becoming part of a bankruptcy estate by operation of law under the Bankruptcy
Code.

 

		(iii)	The filing or recording of a Lien against the Mortgaged Property for local taxes and/or assessments
not then due and payable.

 

“Transfer and Assumption
Agreement” is defined in Section 11.12(f)(ix).

 

“Transfer Fee”
means a fee paid when the Transfer is completed. Unless otherwise specified, the Transfer Fee will be equal to 1% of the outstanding
principal balance of the Indebtedness as of the date of the Transfer. Notwithstanding anything set forth in Article VII to
the contrary, the Transfer Fee will not exceed 1% of the outstanding principal balance of the Loan.

 

“Transfer Review Fee”
means a nonrefundable fee of $5,000 for Lender’s review of a proposed Transfer.

 

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“U.S. Treasury Obligations”
means direct, non-callable and non-redeemable securities issued, or fully insured as to payment, by the United States of America.

 

“UCC Collateral”
is defined in Section 3.03.

 

“Underwriter Group”
is defined in Section 10.02(d).

 

“Uniform Commercial Code”
means the Uniform Commercial Code as promulgated in the applicable jurisdiction.

 

“Windstorm
Coverage” is defined in Section 6.10(a)(ix).

 

ARTICLE XIII      INCORPORATION
OF ATTACHED RIDERS.

 

The following Riders are attached to this
Loan Agreement:

 

	Name of Rider	 	Date Revised
	Rider to Multifamily Loan and Security Agreement (CME andPortfolio) Replacement Reserve Fund – Immediate Deposits	 	1-11-2012
	Rider to Multifamily Loan and Security Agreement (CME) Repairs – No Repair Reserve Established	 	1-11-2012
	Rider to Multifamily Loan and Security Agreement (CME andPortfolio) Future Acquisition of Additional Property [Transaction Specific]	 	7-26-2012
	Rider to Multifamily Loan and Security Agreement (CME andPortfolio) Entity Guarantor	 	9-1-2011
	Rider to Multifamily Loan and Security Agreement (CME andPortfolio) Termite or Wood Damaging Insect Control	 	9-1-2011
	Rider to Multifamily Loan and Security Agreement (CME) Buy-Sell Transfer	 	9-1-2011
	Rider to Multifamily Loan and Security Agreement (CME) Affiliate Transfer	 	9-1-2011

  

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ARTICLE XIV      INCORPORATION
OF ATTACHED EXHIBITS.

 

The following Exhibits, if marked with an
“X” in the space provided, are attached to this Loan Agreement:

 

	X	 	Exhibit A	Description of the Land (required)
	 	 	 	 
	X	 	Exhibit B	Modifications to Multifamily Loan and Security Agreement
	 	 	 	 
	X	 	Exhibit C	Repair Schedule of Work
	 	 	 	 
	 	 	Exhibit D	Repair Disbursement Request
	 	 	 	 
	X	 	Exhibit E	Work Commenced at Mortgaged Property
	 	 	 	 
	X	 	Exhibit F	Capital Replacements (required)
	 	 	 	 
	 	 	Exhibit G	Description of Ground Lease
	 	 	 	 
	X	 	Exhibit H	Organizational Chart of Borrower as of the Closing Date (required)
	 	 	 	 
	X	 	Exhibit I	Designated Entities for Transfers and Guarantor(s) (required)
	X	 	Exhibit J	Future Acquisition Parcel

 

{Signatures on next page.}

 

    	Multifamily Loan and Security Agreement (CME)
Page 92

    	 

    

 

	 	BORROWER:
	 	 
	 	WAYPOINT ENDERS OWNER, LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ Scott Lawlor 	(Seal)
	 	Name: Scott Lawlor
	 	Title: President

 

{Signatures continue on next page.}

 

    	Multifamily Loan and Security Agreement (CME)
Page 93

    	 

    

 

	 	LENDER:
	 	 
	 	JONES LANG LASALLE OPERATIONS, L.L.C., an Illinois limited liability company
	 	 
	 	By:	/s/ Faron G. Thompson	(Seal)
	 	Name:	Faron G. Thompson
	 	Title:	Managing Director
	 	 	Capital Markets-Real Estate
	 	 	Investment Banking

 

    	Multifamily Loan and Security Agreement (CME)
Page 94

    	 

    

 

RIDER TO MULTIFAMILY LOAN AND SECURITY
AGREEMENT  

(CME AND PORTFOLIO)

 

REPLACEMENT
RESERVE FUND – IMMEDIATE DEPOSITS

 

(Revised 1-11-2012)

 

The following changes are made to the Loan
Agreement which precedes this Rider:

 

		A.	Section 4.04 is deleted and replaced with the following:

 

		4.04	Replacement Reserve Fund. 

 

		(a)	Deposits to Replacement Reserve Fund. On the Closing Date, the parties will establish the Replacement
Reserve Fund and Borrower will pay the Initial Deposit to Lender for deposit into the Replacement Reserve Fund. Commencing on the
date the first installment of principal and/or interest is due under the Note and continuing on the same day of each successive
month until the Loan is paid in full, Borrower will pay the Monthly Deposit to Lender for deposit into the Replacement Reserve
Fund, together with its regular monthly payments of principal and/or interest as required by the Note. A transfer of funds into
the Replacement Reserve Fund from the Repair Reserve Fund, pursuant to the terms of Section 4.03(e), if applicable, will not
alter or reduce the amount of any deposits to the Replacement Reserve Fund.

 

		(b)	Fees Deducted From Replacement Reserve Fund. Lender will be entitled to deduct from the Replacement
Reserve Fund (i) the Investment Fee for establishing the Replacement Reserve Fund and (ii) the Inspection Fee for any inspection
required pursuant to this Section 4.04. If Lender, in its discretion, retains a professional inspection engineer or other
qualified third party to inspect any Capital Replacements pursuant to the terms of Section 6.06, Lender also will be entitled
to deduct from the Replacement Reserve Fund an amount sufficient to pay all reasonable fees and expenses charged by such third
party inspector.

 

		(c)	Adjustments to Replacement Reserve Fund. Lender reserves the right to adjust the amount of
the Monthly Deposit based on Lender’s assessment of the physical condition of the Mortgaged Property. Unless the Loan has
an initial term of greater than 120 months, Lender will not make such an adjustment prior to the date that is 120 months
after the first installment due date, nor more frequently than every 10 years thereafter during the term of the Loan. Upon
Notice from Lender or Loan Servicer, Borrower will begin paying the Revised Monthly Deposit on the first monthly payment date that
is at least 30 days after the date of Lender’s or Loan Servicer’s Notice. If Lender or Loan Servicer does not
provide Borrower with Notice of a Revised Monthly Deposit, Borrower will continue to pay the Monthly Deposit or the Revised Monthly
Deposit then in effect.

 

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		(d)	Insufficient Amount in Replacement Reserve Fund. If Borrower requests disbursement from the
Replacement Reserve Fund for a Capital Replacement in accordance with this Loan Agreement in an amount which exceeds the amount
on deposit in the Replacement Reserve Fund, Lender will disburse to Borrower only the amount on deposit in the Replacement Reserve
Fund. Borrower will pay all additional amounts required in connection with any such Capital Replacement from Borrower’s own
funds.

 

		(e)	INTENTIONALLY OMITTED.

 

		(f)	INTENTIONALLY OMITTED.

 

		(g)	Disbursements from Replacement Reserve Fund.

 

		(i)	Requests for Disbursement. Lender will disburse funds from the Replacement Reserve Fund as
follows:

 

		(A)	Borrower’s Request. If Borrower determines, at any time or from time to time, that a
Capital Replacement is necessary or desirable, Borrower will perform such Capital Replacement and request from Lender, in writing,
reimbursement for such Capital Replacement. Borrower’s request for reimbursement will include (1) a detailed description
of the Capital Replacement performed, together with evidence, satisfactory to Lender, that the cost of such Capital Replacement
has been paid, and (2) if required by Lender, lien waivers from each contractor and material supplier supplying labor or materials
for such Capital Replacement.

 

		(B)	Lender’s Request. If Lender reasonably determines at any time or from time to time, that
a Capital Replacement is necessary for the proper maintenance of the Mortgaged Property, it will so notify Borrower, in writing,
requesting that Borrower obtain and submit to Lender bids for all labor and materials required in connection with such Capital
Replacement. Borrower will submit such bids and a time schedule for completing each Capital Replacement to Lender within 30 days
after Borrower’s receipt of Lender’s Notice. Borrower will perform such Capital Replacement and request from Lender,
in writing, reimbursement for such Capital Replacement. Borrower’s request for reimbursement will include (1) a detailed
description of the Capital Replacement performed, together with evidence, satisfactory to Lender, that the cost of such Capital
Replacement has been paid, and (2) if required by Lender, lien waivers from each contractor and material supplier supplying labor
or materials for such Capital Replacement.

 

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		(ii)	Conditions Precedent. Disbursement from the Replacement Reserve Fund will be made no more frequently
than once every Replacement Reserve Disbursement Period and, except for the final disbursement, no disbursement will be made in
an amount less than the Minimum Replacement Disbursement Request Amount. Disbursements will be made only if the following conditions
precedent have been satisfied, as reasonably determined by Lender in Lender’s Discretion:

 

		(A)	Each Capital Replacement has been performed and/or installed on the Mortgaged Property in a good and
workmanlike manner with suitable materials (or in the case of a partial disbursement, performed and/or installed on the Mortgaged
Property to an acceptable stage), in accordance with good building practices and all applicable laws, ordinances, rules and regulations,
building setback lines and restrictions applicable to the Mortgaged Property, and has been paid for by Borrower as evidenced by
copies of all applicable paid invoices or bills submitted to Lender by Borrower at the time Borrower requests disbursement from
the Replacement Reserve Fund.

 

		(B)	There is no condition, event or act that would constitute a default (with or without Notice and/or
lapse of time).

 

		(C)	No Lien or claim based on furnishing labor or materials has been recorded, filed or asserted against
the Mortgaged Property, unless Borrower has properly provided a bond or other security against loss in accordance with applicable
law.

 

		(D)	All licenses, permits and approvals of any Governmental Authority required for the Capital Replacement
as completed to the applicable stage have been obtained and submitted to Lender upon Lender’s request.

 

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		(h)	Right to Complete Capital Replacements. If Borrower abandons or fails to proceed diligently
with any Capital Replacement in a timely fashion or an Event of Default occurs and continues under this Loan Agreement for 30 days
after Notice of such failure by Lender to Borrower, Lender will have the right (but not the obligation) to enter upon the Mortgaged
Property and take over and cause the completion of such Capital Replacement. However, no such Notice or cure period will apply
in the case of such failure which could, in Lender’s sole and absolute judgment, absent immediate exercise by Lender of a
right or remedy under this Loan Agreement, result in harm to Lender, tenants or third parties or impairment of the security given
under this Loan Agreement, the Security Instrument or any other Loan Document. Any contracts entered into or indebtedness incurred
upon the exercise of such right may be in the name of Borrower, and Lender is irrevocably appointed the attorney in fact for Borrower,
such appointment being coupled with an interest, to enter into such contracts, incur such obligations, enforce any contracts or
agreements made by or on behalf of Borrower (including the prosecution and defense of all actions and proceedings in connection
with the Capital Replacement and the payment, settlement or compromise of all bills and claims for materials and work performed
in connection with the Capital Replacement) and do any and all things necessary or proper to complete any Capital Replacement,
including signing Borrower’s name to any contracts and documents as may be deemed necessary by Lender. In no event will Lender
be required to expend its own funds to complete any Capital Replacement, but Lender may, in Lender’s Discretion, advance
such funds. Any funds advanced will be added to the Indebtedness, secured by the Security Instrument and payable to Lender by Borrower
in accordance with the provisions of the Note, this Loan Agreement, the Security Instrument and any other Loan Document pertaining
to the protection of Lender’s security and advances made by Lender.

 

		(i)	Completion of Capital Replacements. Lender’s disbursement of monies from the Replacement
Reserve Fund or other acknowledgment of completion of any Capital Replacement in a manner satisfactory to Lender in Lender’s
Discretion will not be deemed a certification by Lender that the Capital Replacement has been completed in accordance with applicable
building, zoning or other codes, ordinances, statutes, laws, regulations or requirements of any Governmental Authority. Borrower
will at all times have the sole responsibility for ensuring that all Capital Replacements are completed in accordance with all
such requirements of any Governmental Authority.

 

		B.	The following definitions are added to Article XII:

 

“Initial Deposit”
means $0.00.

 

“Minimum Replacement
Disbursement Request Amount” means $2,000.00.

 

“Monthly Deposit”
means $4,125.00.

 

“Replacement Reserve
Deposit” means the Initial Deposit, the Monthly Deposit and/or the Revised Monthly Deposit, as appropriate.

 

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“Replacement Reserve
Disbursement Period” means the interval between disbursements from the Replacement Reserve Fund, which interval will
be no shorter than once a month.

 

“Replacement Reserve
Fund” means the account established pursuant to this Loan Agreement to defray the costs of Capital Replacements.

 

“Revised Monthly Deposit”
means the adjusted amount per month that Lender determines Borrower must deposit in the Replacement Reserve Fund following any
adjustment determination by Lender pursuant to Section 4.04(c).

 

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Loan and Security Agreement (CME and Portfolio)

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RIDER TO MULTIFAMILY LOAN AND SECURITY
AGREEMENT  

(CME)

 

REPAIRS –
NO REPAIR RESERVE ESTABLISHED

 

(Revised 1-11-2012)

 

The following changes are made to the Loan
Agreement which precedes this Rider:

 

		A.	Section 4.03 is deleted and replaced with the following:

 

		4.03	Repairs – No Repair Reserve Fund Established. No Repair Reserve Fund has been established.
Borrower must commence and complete the Repairs as required pursuant to Section 6.14.

 

		(a)	Reporting Requirements; Completion. Prior to the Completion Date, Borrower will deliver all
of the following to Lender:

 

		(i)	Contractor’s Certificate. If required by Lender, a certificate signed by each major contractor
and supplier of materials, as reasonably determined by Lender, engaged to provide labor or materials for the Repairs to the effect
that such contractor or supplier has been paid in full for all work completed and that the portion of the Repairs provided by such
contractor or supplier has been fully completed in accordance with the plans and specifications (if any) provided to it by Borrower
and that such portion of the Repairs is in compliance with all applicable building codes and other rules and regulations promulgated
by any applicable regulatory authority or Governmental Authority.

 

		(ii)	Borrower’s Certificate. A certificate signed by Borrower to the effect that the Repairs
have been fully paid for and no claim exists against Borrower or against the Mortgaged Property out of which a lien based on furnishing
labor or material exists or might ripen. Borrower may except from the certificate described in the preceding sentence any claim(s)
that Borrower intends to contest, provided that any such claim is described in Borrower’s certificate. If required by Lender,
Borrower also must certify to Lender that such portion of the Repairs is in compliance with all applicable building codes and zoning
ordinances.

 

		(iii)	Engineer’s Certificate. If required by Lender, a certificate signed by the professional
engineer employed by Lender to the effect that the Repairs have been completed in a good and workmanlike manner in compliance with
the Repair Schedule of Work and all applicable building codes, zoning ordinances and other rules and regulations promulgated by
applicable regulatory or Governmental Authority.

 

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		(iv)	Other Certificates. Any other certificates of approval, acceptance or compliance required by
Lender from any Governmental Authority having jurisdiction over the Mortgaged Property and the Repairs.

 

		(b)	Right to Complete Repairs. If Borrower abandons or fails to proceed diligently with the Repairs
or otherwise or there exists an Event of Default under this Loan Agreement, Lender will have the right (but not the obligation)
to enter upon the Mortgaged Property and take over and cause the completion of the Repairs. Any contracts entered into or indebtedness
incurred upon the exercise of such right may be in the name of Borrower, and Lender is irrevocably appointed the attorney in fact
of Borrower, such appointment being coupled with an interest, to enter into such contracts, incur such obligations, enforce any
contracts or agreements made by or on behalf of Borrower (including the prosecution and defense of all actions and proceedings
in connection with the Repairs and the payment, settlement, or compromise of all claims for materials and work performed in connection
with the Repairs) and do any and all things necessary or proper to complete the Repairs including signing Borrower’s name
to any contracts and documents as may be deemed necessary by Lender. In no event will Lender be required to expend its own funds
to complete the Repairs, but Lender may, in Lender’s sole and absolute discretion, advance such funds. Any funds advanced
will be added to the Indebtedness, secured by the Security Instrument and payable to Lender by Borrower in accordance with the
provisions of the Loan Documents pertaining to the protection of Lender’s security and advances made by Lender.

 

		(c)	Completion of Repairs. Any acknowledgment by Lender of completion of any Repair in a manner
satisfactory to Lender will not be deemed a certification by Lender that the Repair has been completed in accordance with applicable
building, zoning or other codes, ordinances, statutes, laws, regulations or requirements of any Governmental Authority. Borrower
will at all times have the sole responsibility for insuring that all Repairs are completed in accordance with all such governmental
requirements.

 

		(d)	Fees Charged by Lender. Lender may charge the Borrower each of the following fees:

 

		(i)	The Inspection Fee for any inspection required pursuant to this Section 4.03.

 

		(ii)	The Extension/Modification Fee for any extension of the Completion Date or expansion of the scope
of Repairs that is requested by Borrower and agreed to by Lender.

 

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		(iii)	If Lender, in Lender’s Discretion, retains a professional inspection engineer or other qualified
third party to inspect any Repairs pursuant to the terms of Section 6.06, an amount sufficient to pay all reasonable fees and expenses
charged by such third party inspector.

 

Borrower will pay the amount
of such item to Lender immediately after Notice from Lender to Borrower of such charge.

 

		B.	The following definitions are added to Article XII:

 

“Extension/Modification
Fee” means a fee charged by Lender in the amount not to exceed $3,000 for any extension of the Completion Date
or expansion of the scope of Repairs that is requested by Borrower and agreed to by Lender.

 

“Repair Schedule of
Work” means the Repair Schedule of Work attached as Exhibit C.

 

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Agreement (CME)

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RIDER TO MULTIFAMILY LOAN AND SECURITY
AGREEMENT 

(CME AND PORTFOLIO)

 

FUTURE ACQUISITION
OF ADDITIONAL PROPERTY

 

(Revised 7-26-2012)

 

[TRANSACTION SPECIFIC]

 

The following changes are made to the Loan
Agreement which precedes this Rider:

 

		A.	The following new Sections are added to Article VII:

 

		7.06	Lender’s Consent to Future Acquisition. Notwithstanding the prohibition against Transfers
contained in this Loan Agreement, Lender agrees, upon the request of Borrower, to the Future Acquisition without any prepayment
of, or change in the interest rate on, the Indebtedness, provided that such Future Acquisition will be subject to and conditioned
upon satisfaction of each of the following conditions:

 

		(a)	The Borrower will deliver a written Notice to Lender specifying the date of the Future Acquisition
not less than 60 days prior to the proposed effective date of the Future Acquisition. The Borrower’s written request to effect
the Future Acquisition will be accompanied by a non-refundable review fee in the amount of $20,000.

 

		(b)	No Event of Default will have occurred and be continuing.

 

		(c)	The actual dimensions of the Future Acquisition Parcel will not materially deviate from the proposed
dimensions of the Future Acquisition Parcel as depicted on Exhibit J.

 

		(d)	Intentionally omitted.

 

		(e)	Lender will have received from Borrower a current Site Assessment evidencing the presence of no
Hazardous Materials on the Future Acquisition Parcel and no other Prohibited Activities or Conditions with respect to the Future
Acquisition Parcel dated not earlier than 90 days prior to the date of the proposed Future Acquisition.

 

		(f)	Intentionally omitted.
	 	 	 

		(g)	Borrower will submit to Lender, not less than 30 days prior to the date of the proposed Future Acquisition, all documents,
in a form appropriate in the Property Jurisdiction, required to add the Future Acquisition Parcel to the lien of the Security Instrument
and any required modifications to the Security Instrument and any of the other Loan Documents for execution by Lender.

 

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    	Future Acquisition of Additional Property	Page 1

    	 

    

 

		(h)	Lender will have received a commitment for an endorsement to the title insurance policy (i) amending
the insured legal description to include the Future Acquisition Parcel, (ii) insuring the Security Instrument (including the amendment
to the Security Instrument recorded to add the Future Acquisition Parcel to the legal description), (iii) reflecting that no title
matters other than those identified in the title insurance policy previously issued to Lender affect the Land (except those approved
by Lender in its discretion that affect the Future Acquisition Parcel), (iv) extending the effective date of the title policy to
the recording date of the deed or easement granting Borrower an interest in the Future Acquisition Parcel, and (v) further evidencing
the continued first lien priority of the Instrument on the Land, including the Future Acquisition Parcel. The original of the endorsement
must be delivered to Lender within 15 days after the recording of the deed or easement granting Borrower an interest in the Future
Acquisition Parcel.

 

		(i)	Following a Securitization (if applicable), no Future Acquisition of
the Future Acquisition Parcel will be permitted unless the following conditions are satisfied: 

 

		(i)	Either:

 

		a.	Immediately
                                                                                        after the Future Acquisition, the loan
                                                                                        to value ratio of the Mortgaged Property
                                                                                        (taking into account only the related
                                                                                        land and buildings and not any personal
                                                                                        property or going-concern value)
                                                                                        is equal to or less than 125% (such value
                                                                                        to be determined, in Lender’s sole
                                                                                        discretion, by any commercially reasonable
                                                                                        method permitted in connection with a
                                                                                        Securitization), or 

 

		b.	In connection with the Future Acquisition, the principal balance
of the Loan is paid down by an amount such that the loan-to-value ratio of the Loan (as determined by Lender) does not increase
after the Future Acquisition.

 

		(ii)	If required by Lender, Borrower delivers to Lender an opinion of counsel that the Securitization
will not fail to maintain its status as a REMIC as a result of the Future Acquisition.
	 	 	 

		(j)	Each Guarantor must deliver to Lender a written agreement that such Guarantor’s Guaranty continues in full force and
effect notwithstanding the Future Acquisition.

 

		(k)	Intentionally omitted.

 

		(l)	Borrower will pay all third party costs, taxes and expenses associated with the addition to the lien of the Security Instrument
and its acquisition of the Future Acquisition Parcel, including Lender’s and the Rating Agencies’ reasonable attorneys’
fees.

 

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		(m)	If undertaken, the Future Acquisition must be completed no later than two years before the Maturity Date.

 

		7.07	Termination of Condominium Instruments. If, following the Future Acquisition, Borrower owns
100% of the units that make up the Condominium, then notwithstanding any other provision of this Loan Agreement to the contrary,
Borrower may elect to terminate the Condominium Instruments in accordance with the laws of the Property Jurisdiction and Lender
will consent to such termination, provided Borrower pays Lender a $5,000 review fee and pays all third party costs, taxes and expenses
associated with the termination of the Condominium Instruments, including Lender’s and the Rating Agencies’ reasonable
attorneys’ fees.

 

		B.	INTENTIONALLY OMITTED.

 

		C.	The following definitions are added to Article XII:

 

“Future Acquisition”
means the one-time acquisition by Borrower of the Future Acquisition Parcel.

 

“Future Acquisition
Parcel” means one or more individual condominium units owned by Persons other than Borrower (“Remaining Units”),
up to at total of 22 units (which would make Borrower the 100% owner of the Condominium); the Remaining Units are described on
Exhibit J.

 

“Required Acquisition
Date” is not applicable.

 

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RIDER TO MULTIFAMILY LOAN AND SECURITY
AGREEMENT 

(CME AND PORTFOLIO)

 

ENTITY GUARANTOR

 

(Revised 9-1-2011)

 

The following changes are made to the Loan
Agreement which precedes this Rider:

 

		A.	The following is added as a new subsection to Section
9.01:

 

		(s)	Guarantor fails to comply with the provisions of the Section of the Guaranty entitled “Material Adverse Change”
or “Minimum Net Worth/Liquidity Requirements”, as applicable.

 

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RIDER TO MULTIFAMILY LOAN AND SECURITY
AGREEMENT 

(CME AND PORTFOLIO)

 

TERMITE OR WOOD
DAMAGING INSECT CONTROL

 

(Revised 9-1-2011)

 

The following changes are made to the Loan
Agreement which precedes this Rider:

 

		A.	The following is added as a new subsection to Section 6.09:

 

Termite or Wood Damaging Insect Control.
Borrower will maintain a contract with a qualified service provider for control of termites or other wood damaging insects at the
Mortgaged Property for so long as the Indebtedness remains outstanding.

 

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RIDER TO MULTIFAMILY
LOAN AND SECURITY AGREEMENT

 

(CME)

 

BUY-SELL TRANSFER

 

(Revised 9-1-2011)

 

The following changes are made to the Loan
Agreement which precedes this Rider:

 

		A.	Section 7.03(d) is deleted and replaced with the following:

 

		(d)	Buy-Sell Transfer. (1) A one-time
Transfer pursuant to a buy-sell agreement or similar agreement of the interests in Borrower of WAYPOINT BLUEROCK ENDERS JV, LLC
(“Managing Interest”) to WAYPOINT ENDERS INVESTORS LP (“Equity Interest”) (either by purchase
of the ownership interest of the Managing Interest or replacement of the Managing Interest as the general partner, manager or managing
member) or (2) a one-time
Transfer pursuant to a buy-sell agreement or similar agreement
of the Equity Interest to the Managing Interest, together with a
simultaneous one-time Transfer of the interest of Waypoint Enders GP, LLC in Managing Interest to BR Enders Managing Member,
LLC (each alternative a “Buy-Sell
Transfer”), provided that each of the following conditions is satisfied:

 

		(i)	Borrower provides Lender with at least 30 days prior Notice of the proposed Buy-Sell Transfer and
pays to Lender the Transfer Review Fee.

 

		(ii)	At the time of the proposed Buy-Sell Transfer, no Event of Default has occurred and is continuing
and no event or condition has occurred and is continuing that, with the giving of Notice or the passage of time, or both, would
become an Event of Default; provided, however, if the Buy-Sell Transfer would cure the Event of Default, the Buy-Sell Transfer
must occur within 60 days after all conditions in this Section have been met to Lender’s satisfaction.

 

		(iii)	Borrower pays or reimburses Lender, upon demand, for all costs and expenses, including all Attorneys’
Fees and Costs, incurred by Lender in connection with the Buy-Sell Transfer.

 

		(iv)	At the time of the Buy-Sell Transfer, Borrower pays to Lender a Transfer Fee in the following amount,
as applicable:

 

		(A)	$25,000 $50,000 if the Managing
Interest will retain the managing member interest or general partnership interest, as applicable, in Borrower.

 

		(B)	$50,000 $25,000 if the Equity
Interest will obtain directly or indirectly the managing member interest or general partnership interest in, or would become the
non-member manager of Borrower, as applicable (“New Borrower Principal”).

 

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		(v)	If there is a New Borrower Principal, New Borrower Principal At
the time of the Buy-Sell Transfer, if the Equity Interest is transferred to Managing Interest, then Managing Interest or its Affiliate
provides a replacement guarantor (“New Guarantor”) acceptable to Lender in Lender’s Discretion,
and each of the following requirements is met:

 

		(A)	New Guarantor has a net worth of at least $10,000,000, and liquid assets of at least $1,750,000.

 

		(B)	Lender has received all information and organizational documents requested by Lender in Lender’s Discretion, with respect
to New Guarantor.

 

		(C)	New Guarantor executes a Guaranty in a form acceptable to Lender and in substantially the same
form as the Guaranty executed on the Closing Date (“New Guaranty”), however, if New Guarantor is an entity, the New
Guaranty has been modified to include, at New Guarantor’s option, either the Rider to Guaranty – Material Adverse Change,
or the Rider to Guaranty – Minimum Net Worth/Liquidity.

 

		(D)	Section 9.01 will be deemed to be modified to insert the following as a new subsection:

 

		(t)	Any failure by Guarantor to comply with the Minimum Net Worth/Liquidity Rider to the Guaranty,
or the Material Adverse Change Rider to the Guaranty, if applicable.

 

		(vi)	The Mortgaged Property continues to be managed by the initial Property Manager or a successor Property
Manager satisfactory to Lender pursuant to a property management agreement approved by Lender in writing; provided that such successor
Property Manager and Borrower execute an assignment of the management agreement in form acceptable to Lender.

 

		(vii)	At the time of the proposed Buy-Sell Transfer, if the Equity Interest becomes a New Borrower Principal,
it certifies to Lender that its net worth and liquidity are substantially the same as its net worth and liquidity as of the date
of this Loan Agreement and there is not any pending bankruptcy, reorganization or litigation which would substantially negatively
affect such net worth and/or liquidity.

 

		(viii)	Lender receives organizational charts reflecting the structure of Borrower prior to and after the
Buy-Sell Transfer.

 

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Loan and Security Agreement (CME )

    	Buy-Sell Transfer	Page 2

    	 

    

 

		(ix)	If a nonconsolidation opinion was delivered on the Closing Date and if, after giving effect to the
Buy-Sell Transfer and all prior Transfers, 50% or more in the aggregate of direct or indirect interests in Borrower are owned by
any Person and its Affiliates that owned less than a 50% direct or indirect interest in Borrower as of the Closing Date, Borrower
delivers to Lender an opinion of counsel for Borrower, in form and substance satisfactory to Lender and to the Rating Agencies,
with regard to nonconsolidation.

 

		(x)	Lender receives confirmation acceptable to Lender that the requirements of Section 6.13 continue to
be satisfied.

 

		(xi)	For purposes of the Preapproved Intrafamily Transfers set forth in Section 7.04, if applicable,
New Guarantor will be deemed to be the person or entity set forth in Section 7.04(b)(ii).

 

		B.	The following definitions are added to Article XII:

 

“Buy-Sell Transfer”
is defined in Section 7.03(d).

 

“Equity Interest”
is defined in Section 7.03(d).

 

“Managing
Interest” is defined in Section 7.03(d).

 

Rider to Multifamily Loan and Security
Agreement (CME )

    	Buy-Sell Transfer	Page 3

    	 

    

 

RIDER TO MULTIFAMILY
LOAN AND SECURITY AGREEMENT

 

(CME)

 

AFFILIATE TRANSFER

 

(Revised 9-1-2011)

 

The following changes are made to the Loan
Agreement which precedes this Rider:

 

		A.	A new Section 7.03(e) is added as follows:

 

		(e)	Affiliate Transfer. A Transfer of any direct or indirect interests in Borrower held by an entity
wholly-owned and controlled by Bluerock Enhanced Multifamily Holdings LP to one or more of its Affiliates (“Affiliate
Transfer”) provided that each of the following conditions is satisfied:

 

		(i)	Borrower provides Lender with at least 30 days prior Notice of the proposed Affiliate Transfer and
pays to Lender the Transfer Review Fee.

 

		(ii)	At the time of the proposed Affiliate Transfer, no Event of Default has occurred and is continuing
and no event or condition has occurred and is continuing that, with the giving of Notice or the passage of time, or both, would
become an Event of Default.

 

		(iii)	Lender determines, in Lender’s Discretion, that the Affiliate meets Lender’s eligibility,
credit, management and other standards.

 

		(iv)	After the Affiliate Transfer, Control and management of the day-to-day operations of Borrower continue
to be held by the Person exercising such Control and management immediately prior to the Affiliate Transfer and there is no change
in the Guarantor, if applicable.

 

		(v)	Lender receives organizational charts reflecting the structure of Borrower prior to and after the
Affiliate Transfer.

 

		(vi)	Borrower pays or reimburses Lender, upon demand, for all costs and expenses including all Attorneys’
Fees and Costs, incurred by Lender in connection with the Affiliate Transfer.

 

		(vii)	At the time of the Affiliate Transfer, Borrower pays a $25,000 Transfer Fee to Lender.

 

		(viii)	If a nonconsolidation opinion was delivered on the Closing Date and if, after giving effect to the
Affiliate Transfer and all prior Transfers, 50% or more in the aggregate of direct or indirect interests in Borrower are owned
by any Person and its Affiliates that owned less than a 50% direct or indirect interest in Borrower as of the Closing Date, Borrower
delivers to Lender an opinion of counsel for Borrower, in form and substance satisfactory to Lender and to the Rating Agencies,
with regard to nonconsolidation.

 

Rider to Multifamily
Loan and Security Agreement (CME ) 

    	Affiliate Transfer	Page 1

    	 

    

 

		(ix)	If required by Lender, Lender receives confirmation acceptable to Lender that the requirements of
Section 6.13 continue to be satisfied.

 

		(x)	Borrower delivers to Lender a search confirming that the Affiliate is not on the list of Specially
Designated Nationals or other blocked persons published by the U.S. Office of Foreign Assets Control, or on the list of persons
or entities prohibited from doing business with the Department of Housing and Urban Development.

 

		B.	The following definition is added to Article XII:

 

“Affiliate
Transfer” is defined in Section 7.03(e).

 

Rider to Multifamily
Loan and Security Agreement (CME )

    	Affiliate Transfer	Page 2

    	 

    

 

EXHIBIT
A

 

DESCRIPTION
OF THE LAND

 

    	Multifamily
                                                                                                                                                                                               Loan
                                                                                                                                                                                               and
                                                                                                                                                                                               Security
                                                                                                                                                                                               Agreement
                                                                                                                                                                                               (CME)	Page
                                                                                                                                                                                                         A-1

    	 

    

 

EXHIBIT
B

 

MODIFICATIONS
TO Multifamily Loan and security AGREEMENT

 

		1.	Section 6.13(a)(i) is hereby deleted and replaced with the following:

 

		(i)	It will not engage in any business or activity, other than the ownership,
leasing, sale, financing, operation and/or maintenance of the
Mortgaged Property and activities incidental thereto.

 

		2.	Section 6.13(a)(xviii) is hereby deleted and replaced with the following:

 

(xviii) It
will maintain adequate capital for the normal obligations reasonably

 

foreseeable in a business of its
size and character and in light of its contemplated business operations and will pay its debts and liabilities from its own assets
as the same become due; provided, however, the aforementioned shall not be deemed
to require any member of the Borrower to contribute additional capital to the Borrower.

 

		3.	A new Section 6.21 is hereby added as follows:

 

		6.21.	CONDOMINIUM PROVISIONS

 

		(a)	Borrower represents and warrants that (i) the Mortgaged Property is a portion of a condominium
(the “Condominium”) consisting of Two Hundred Twenty (220) residential condominium units, of which One Hundred
Ninety-Eight (198) (the "Condominium Units") are owned by Borrower and Twenty-Two (22) are owned by Persons which
are not Affiliates of Borrower, and (ii) the Mortgaged Property granted, conveyed and assigned to Lender includes all rights, easements,
rights of way, reservations and powers of the Borrower under the Condominium Act of the State of Florida ("Condominium
Act"), the Declaration, as recorded in the official records of Orange County, State of Florida, in Book 8664, Page 4447,
the Bylaws, any Plats establishing and describing the Condominium and any other instruments establishing and governing the condominium
regime (collectively, the "Condominium Instruments") in Borrower's capacity as owner of the Condominium Units
as well as all rights, title and interest that Borrower may have, in any capacity, under the Condominium Act and the Condominium
Instruments, specifically including but not limited to all rights to approve any amendments to the Condominium Instruments.

 

		(b)	Borrower will not pledge, sell, convey, or encumber or enter into a contract to pledge, sell, convey,
or encumber any Condominium Unit or any of the common elements of the Condominium owned by Borrower without the prior written approval
of Lender, which may be given or withheld in Lender’s sole and absolute discretion.

 

    	Multifamily Loan and Security Agreement (CME)	Page B-1

    	 

    

 

		(c)	Borrower agrees that it will own, operate and maintain the Mortgaged Property in accordance with
the terms of this Instrument and operate the Mortgaged Property solely as a rental apartment project.

 

		(d)	Borrower will not consent to any change in the Condominium Instruments without the prior written
approval of Lender, which may be given or withheld in Lender’s sole and absolute discretion.

 

		(e)	Borrower will pay when due all assessments for common charges, expenses and other amounts due to
the association of condominium owners (the "Condominium Association").

 

		(f)	Borrower will immediately deliver to Lender a copy of any notice received by Borrower from the
Condominium Association asserting that Borrower is in breach of any payment obligation or in default under the Condominium Instruments.

 

		(g)	Notwithstanding any other provision contained in this Instrument, in the event of the appointment
of a receiver pursuant to this Instrument or otherwise which receiver has authority to replace any director or trustee of the Condominium
Association pursuant to the terms of the receivership order (the "Order"), (A) Borrower will, if directed by Lender,
cause any trustee or director of the Condominium Association to resign or otherwise be removed effective as of the date of such
appointment; and (B) Borrower agrees that any replacement trustee or director may thereafter be appointed by such receiver, to
the extent allowed for in the Order.

 

		(h)	If a casualty or condemnation results in distribution of proceeds to owners of units of the Condominium
Association, Borrower agrees that all proceeds allocable to the Condominium Units must be deposited into any Reserve Fund established
in connection with this Loan Agreement.

 

		(i)	The Borrower's insurance coverage for each Condominium Unit comprising the Property must include
coverage for the following matters, to the extent the Condominium Association insurance does not cover such matters:

 

		i.	coverage for the interior walls, for the space between the interior walls and the exterior walls,
as well as the floors and Fixtures; and

 

		ii.	coverage to pay, in the event of an insured loss, each Condominium Unit's share of the deductible
under the master policy held by the Condominium Association, which may be in the form of a special assessment levied on unit owners
by the Condominium Association.

 

    	Multifamily Loan and Security Agreement (CME)	Page B-2

    	 

    

 

		(j)	Borrower irrevocably constitutes and appoints Lender as Borrower's attorney-in-fact (which appointment
will be deemed coupled with an interest) for and in its behalf to perform all of the obligations of Borrower and to exercise all
of the rights and powers of Borrower under the Condominium Instruments without any liability (except for gross negligence or willful
misconduct).

 

		(k)	Borrower hereby instructs and grants and gives to Lender as Borrower's attorney-in-fact, full power
and authority to do and perform every act authorized, permitted, requisite or necessary to be done by Borrower under the provisions
of the Condominium Instruments to all intents and purposes the same as Borrower might do. Borrower hereby ratifies and confirms
all such acts such attorney-in-fact will lawfully do by virtue of this appointment. Borrower acknowledges and agrees that the provisions
set forth in this subsection do not impose, burden or obligate the Lender to do or perform any act whatsoever. Notwithstanding
anything in this subsection to the contrary, Lender may not exercise the rights and powers as Borrower's attorney-in-fact prior
to the occurrence of an Event of Default.

 

		(l)	It will be an Event of Default if Borrower fails to perform any of its obligations under this Section
and such failure continues for 30 days after Borrower's receipt of Notice, as set forth in Section 9.01(h) of this Loan Agreement;
provided, however, the occurrence of either of the events set forth below will constitute an immediate Event of Default and will
not be subject to the Notice provisions set forth in Section 9.01(h):

 

		i.	Borrower terminates or revokes or attempts to terminate or revoke the appointment of Lender as
Borrower's attorney-in-fact either permanently or as to any election in the Condominium Act or Condominium Instruments.

 

		ii.	Borrower agrees to modify the terms of the Condominium Instruments without the prior written consent
of Lender.

 

		(m)	Lender, at its sole option and discretion, may declare all sums secured by the Security Instrument
immediately due and payable and Lender may invoke any remedies permitted under this Loan Agreement if any of the following occurs:
	 	 	 

		i.	Any provision of the applicable statutes pursuant to which the Condominium is established is held
invalid and such invalidity would affect the lien of this Instrument, or impair the ability of Lender to enforce the lien of this
Instrument or otherwise materially affect the rights of Lender under the Loan Documents.

 

    	Multifamily Loan and Security Agreement (CME)	Page B-3

    	 

    

 

		ii.	The Condominium becomes subject to an action for partition at the suit
of any unit owner or otherwise, and such action has been commenced and not dismissed within 30 60
days after commencement of such suit.

 

		iii.	The Condominium is not considered a validly created condominium as established under the Condominium
Act as determined by a final order of a court of competent jurisdiction.

 

		(n)	Borrower agrees to indemnify and hold Lender harmless from and against any and all losses, cost,
liabilities, or damages (including attorney’s fees and disbursements) arising out of (i) the failure of the Borrower to comply
with any state or local law, ordinance, statute, or regulation by any governmental authority covering the condominium at the Mortgaged
Property, or (ii) any act or omission by Borrower with regard to the Condominium Instruments.

 

		(o)	Within 90 days of this Agreement, Borrower must deliver to Lender evidence satisfactory to Lender
that an amendment to the Condominium Instruments has been recorded in the real estate records which modifies such Condominium Instruments
to provide that the consent of at least a "super majority" of the lenders holding mortgages on the condominium units
(the "Mortgagees") is necessary in order to amend the Condominium Instruments concerning various rights, priorities,
remedies and interests of the Mortgagees, including the following:

 

		·	Changing the voting rights of any owner

		·	Changing any restrictions on the use of the condominium units

		·	Changing the priority of liens for assessments

		·	Reallocating the undivided interest in common elements

		·	Encumbering the common elements

		·	Expanding, contracting or terminating the Condominium

		·	Materially modifying the insurance requirements

		·	Using any insurance or condemnation proceeds for anything other than the repair of the Condominium
or distribution to the condominium unit owners

		·	Restricting the leasing of units

		·	Altering any provision that decrease the rights of any mortgagee

 

		p)	Within 90 days of this Agreement, Borrower must deliver to Lender evidence satisfactory to Lender
that an amendment to the Condominium Instruments has been recorded in the real estate records which modifies such Condominium Instruments
to provide that Lender may be named as an additional insured in the Condominium Association’s insurance policies.

 

    	Multifamily Loan and Security Agreement (CME)	Page B-4

    	 

    

 

		4.	Section 11.03 is hereby modified by adding a new subsection (d) as follows:

 

		(d)	Lender shall endeavor to give the individuals or entities listed below courtesy copies of any Notice
given to Borrower or any guarantor by Lender, at the addresses set forth below; provided, however, that failure to provide such
courtesy copies of Notices shall not affect the validity or sufficiency of any Notice to Borrower or any guarantor, shall not affect
Lender’s rights and remedies hereunder or under any other Loan Documents and shall not subject Lender to any claims by or
liability to Borrower, any guarantor or any other individual or entity. It is acknowledged and agreed that no individual or entity
listed below is a third-party beneficiary to any of the Loan Documents.

 

Waypoint Residential

3475 Piedmont
Road NE

Suite 1640

Atlanta GA
30305

Attention:
Ray Barrows

 

Waypoint Bluerock
Enders JV, LLC

c/o Bluerock
Real Estate

70 East 55th
Street, 9th Floor

New York, NY
10022

Attn: 
Michael L. Konig, Esq.

 

Reed Smith
LLP

599 Lexington
Avenue

New York, NY
10022

Attention:
Thomas G. Maira, Esq.

 

    	Multifamily Loan and Security Agreement (CME)	Page B-5

    	 

    

 

EXHIBIT
c

 

REPAIR
SCHEDULE OF WORK

 

	REPAIRS	 	COST	 	 	ESCROW AMOUNT, IF

 APPLICABLE
	Replace missing roof clay tiles at the northeast corner of building #7	 	$	250	 	 	N/A
	Investigate a water leak/ remove mold and mildew in unit 16-101	 	$	5,000	 	 	N/A
	Repair/replace damaged concrete sidewalks throughout the property	 	$	2,500	 	 	N/A
	Repair upheaved brick pavers due to tree roots (near unit 19-105 and unit 22-105)	 	$	2,500	 	 	N/A

 

    	Multifamily Loan and Security Agreement (CME)	Page C-1

    	 

    

 

EXHIBIT
d

 

REPAIR
DISBURSEMENT REQUEST

 

The undersigned hereby requests from
_______________________________________________________________(“Lender”) the disbursement of funds in
the amount of $_________________ (“Disbursement Request”) from the Repair Reserve Fund established pursuant to
the Multifamily Loan and Security Agreement dated ______________________, 20 ___  by and between Lender and the
undersigned ( “Loan Agreement”) to pay for repairs to the multifamily apartment project known as
_____________________________________ and located in ____________________.

 

The undersigned hereby represents and warrants
to Lender that the following information and certifications provided in connection with this Disbursement Request are true and
correct as of the date hereof:

 

		1.	Purpose for which disbursement is requested:

 

	 	 

 

		2.	To whom the disbursement will be made (may be the undersigned
in the case of reimbursement for advances and payments made or cost incurred for work done by the undersigned): _______________________________________________________________________

 

		3.	Estimated costs of completing the uncompleted Repairs
as of the date of this Disbursement Request: ____________________________________________________

 

		4.	The undersigned certifies that each of the following is true:

 

		(a)	The disbursement requested pursuant to this Disbursement
Request will be used solely to pay a cost or costs allowable under the Loan Agreement.

 

		(b)	None of the items for which disbursement is requested
pursuant to this Disbursement Request has formed the basis for any disbursement previously made from the Repair Reserve Fund.

 

		(c)	All labor and materials for which disbursements have
been requested have been incorporated into the Improvements or suitably stored upon the Mortgaged Property in accordance with
reasonable and standard building practices, the Loan Agreement and all applicable laws, ordinances, rules and regulations of any
governmental authority having jurisdiction over the Mortgaged Property.

 

		(d)	The materials, supplies and equipment furnished or installed
for the Repairs are not subject to any Lien or security interest or that the funds to be disbursed pursuant to this Disbursement
Request are to be used to satisfy any such Lien or security interest.

 

    		Multifamily Loan and Security Agreement (CME)

Page D-1

    	 

    

 

		5.	All capitalized terms used in this Disbursement Request without definition will have the meanings
ascribed to them in the Loan Agreement.

 

IN WITNESS WHEREOF, the undersigned has executed
this Disbursement Request as of the day and date first above written.

 

	 	BORROWER:
	 	 
	Date:	 	 	 
	 	 

 

    		Multifamily Loan and Security Agreement (CME)

Page D-2

    	 

    

 

EXHIBIT
e

 

WORK
COMMENCED AT MORTGAGED PROPERTY

 

None.

  

    	Multifamily Loan and Security Agreement (CME)
Page E-1

    	 

    

 

EXHIBIT
F

 

CAPITAL
REPLACEMENTS

 

		·	Carpet/vinyl flooring

		·	Window treatments

		·	Roofs

		·	Furnaces/boilers

		·	Air conditioners

		·	Ovens/ranges

		·	Refrigerators

		·	Dishwashers

		·	Water heaters

		·	Garbage disposals

 

The following additional items may also be
funded from the Replacement Reserve Fund: building exteriors – paint/maintain, seal coat and stripe asphalt, microwaves,
washer/dryer sets

 

    	Multifamily Loan and Security Agreement (CME)
Page F-1

    	 

    

 

EXHIBIT
G

 

DESCRIPTION
OF GROUND LEASE

 

    	Multifamily Loan and Security Agreement (CME)
Page G-1

    	 

    

 

EXHIBIT
H

 

ORGANIZATIONAL
CHART of borrower as of the closing date

 

 

    	Multifamily Loan and Security Agreement (CME)
Page H-1

    	 

    

 

EXHIBIT
I

 

DESIGNATED ENTITIES FOR TRANSFERS AND GUARANTOR(S)

 

Designated Entities for Transfers

 

Waypoint Enders Investors, LP

Waypoint Enders GP, LLC

Rohdie RLN, LLC

 

Waypoint Bluerock Enders JV, LLC

BR Enders Managing Member, LLC

Bluerock Special Opportunity + Income Fund
III, LLC

BEMT Enders, LLC

 

Guarantor(s)

 

Robert C. Rohdie

Bluerock Special Opportunity + Income Fund
III, LLC

 

    	Multifamily Loan and Security Agreement (CME)
Page I-1

    	 

    

 

EXHIBIT
J

 

FUTURE ACQUISITION PARCEL

 

BUILDING 2: UNITS 103, 108, 206; BUILDING
5: UNIT 103; BUILDING 10: UNITS 105, 205; BUILDING 11: UNITS 101, 105; BUILDING 12: UNIT 101; BUILDING 16: UNIT 102; BUILDING 17:
UNIT 102; BUILDING 18: UNITS 101, 105; BUILDING 19: UNIT 105; BUILDING 20: UNIT 103; BUILDING 22: UNITS 101, 202; BUILDING 27:
UNITS 103, 106, 108, 208 AND BUILDING 29: UNIT 101 OF ENDERS PLACE AT BALDWIN PARK, A CONDOMINIUM, ACCORDING TO THAT CERTAIN DECLARATION
OF CONDOMINIUM, AS RECORDED IN OFFICIAL RECORDS BOOK 8664, PAGE 4447, AND ANY SUBSEQUENT AMENDMENTS THERETO, OF THE PUBLIC RECORDS
OF ORANGE COUNTY, FLORIDA, TOGETHER WITH AN UNDIVIDED INTEREST OR SHARE IN THE COMMON ELEMENTS APPURTENANT THERETO.

 

    	Multifamily Loan and Security Agreement (CME)
Page I-1BACKSTOP AGREEMENT

 

THIS AGREEMENT (the
“Agreement”) is made as of the 2nd day of October, 2012 (the “Effective Date”),
by and among ROBERT C. ROHDIE (“Rohdie”); WAYPOINT ENDERS INVESTORS LP, a Delaware limited partnership
(“Waypoint LP”), WAYPOINT ENDERS GP, LLC, a Delaware limited liability company (“Waypoint GP”)(Waypoint
LP and Waypoint GP, each a “Waypoint Guarantor” or “Waypoint Party” and collectively, the
“Waypoint Guarantors” or “Waypoint Parties”); and BR ENDERS MANAGING MEMBER, LLC,
a Delaware limited liability company (“Managing Member,” also referred to herein as “BR Guarantor”)
(the BR Guarantor together with the Waypoint Guarantors are collectively, the “Guarantors” and each a “Guarantor”).

 

WITNESSETH

 

WHEREAS, Managing
Member and Waypoint GP have entered into that certain Limited Liability Company Agreement dated as of October 2, 2012 (“Company
Operating Agreement”) of WAYPOINT BLUEROCK ENDERS JV, LLC, a Delaware limited liability company (the “Company”);

 

WHEREAS, the
Company and Waypoint LP have entered into that certain Limited Liability Company Agreement dated as of October 2, 2012 (“Owner
Operating Agreement”) of WAYPOINT ENDERS OWNER, LLC a Delaware limited liability company (“Property Owner”),
the owner of fee simple title to the Property;

 

WHEREAS, (a)
the Property Owner is acquiring a loan in the original principal amount of Seventeen Million Five Hundred Thousand and No/100 Dollars
($17,500,000.00) and made by the Federal Home Loan Mortgage Corporation (“Lender”), secured by the Property
(collectively, the “Loan”) evidenced by a Promissory Note dated October 2, 2012 (the “Note”)
and secured by a deed of trust on the Property, and (b) pursuant to those certain guaranty agreements executed and delivered
by Rohdie and Special Opportunity + Income Fund III, LLC, a Delaware limited liability company (“SOIF III”),
which is a member of Managing Member (each of Rohdie and SOIF III shall be referred to herein as a “Mortgage Guarantor,”
and collectively, the “Mortgage Guarantors”) in favor of Lender (the “Mortgage Guaranty”),
certain obligations relating to the Loan are being guaranteed;

 

WHEREAS, although
not a Mortgage Guarantor, each of the Guarantors through their respective ownership interest in Property Owner or the Company is
directly or indirectly responsible for the management of the Property and, as a result thereof, may control events that trigger
liability under the Mortgage Guaranty;

 

WHEREAS, the
parties hereto have agreed to execute and deliver this Agreement to set forth their agreement with respect to liabilities which
may arise under the Mortgage Guaranty; and

 

WHEREAS, capitalized
terms used herein and not otherwise defined shall have the meaning ascribed thereto in the Operating Agreement.

 

NOW, THEREFORE,
for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties agree, as follows:

 

1.          Defined
Terms. The following terms (whether or not underscored) when used in this Agreement, including its preamble and recitals, shall,
except where the context otherwise requires, have the following meanings (such meanings to be equally applicable to the singular
and plural forms thereof):

 

    	 

    	 

    

 

“Acquiesces”
or “Acquiesced” means, with respect to any Person and any act or omission that may give rise to Guaranty Losses,
and such Person having received (separately, prior to and with particularity) written notice from the Person causing such action
to be taken or omitted and specifically describing such act or omission, such Person responding with a written statement within
five (5) Business Days of its receipt of such notice affirmatively stating that such Person does not object to such noticed
acts or omissions (it being specifically acknowledged and agreed, however, that if such Person does not so timely respond within
such five (5) Business Day period, then such Person shall be deemed to have not Acquiesced). For example, if (x) any Waypoint
Party desires to take or omit an action which if taken or omitted may give rise to Guaranty Losses, (y) Waypoint Party gives written
notice to Managing Member of the Waypoint Party’s intent with regard to such action, and (z) Managing Member fails to respond
within five (5) Business Days, then Managing Member shall be deemed to have
not Acquiesced to such action (and vice-versa if Managing Member is the party who desires to take or omit an action).

 

“BR Party”
means, any of (a) the BR Guarantor, (b) SOIF III, (c) any employee, agent, representative, officer or member of the BR Guarantor
or SOIF III, (d) and any Person, other than Waypoint GP or any Affiliate of Waypoint GP, that acquires a membership interest in
the Company from the Managing Member and (e) Bluerock Real Estate, L.L.C., a Delaware limited liability company.

 

“BR Party Caused
Guaranty Losses” means any Guaranty Losses that arise solely as a result of the acts or omissions of any BR Party or
actions taken by another Person at the direction of, or pursuant to any contract or subcontract entered into with any BR Party;
provided, however, if such action or omission (a) is Acquiesced to by Rohdie or the Waypoint Parties, then the
same shall not be deemed a BR Party Caused Guaranty Loss, but rather shall be deemed a Joint Loss among the Waypoint Guarantors
and the BR Guarantor; or (b) was undertaken at the written direction of a Waypoint Party, then the same shall not be deemed
a BR Party Caused Guaranty Loss but rather shall be deemed a Waypoint Party Caused Guaranty Loss.

 

“Business
Day” means a day of the year on which banks are open for business in the State of New York and the State of Florida other
than a (a) Saturday, (b) Sunday, (c) legal holiday in the State of New York or (d) legal holiday in the State of Florida. 

 

“Guaranty
Loss” or “Guaranty Losses” means (individually and collectively, as appropriate) any and all actual out-of-pocket
losses, damages, costs and expenses paid by Mortgage Guarantor to Lender (or its successor or assignee as lender under the Loan)
under any Mortgage Guaranty.

 

“Guaranty
Notice” means a written notice from a Mortgage Guarantor to the other Guarantors specifically describing an act or omission
which could give rise to a Guaranty Loss.

 

“Joint Loss”
or “Joint Losses” means (individually and collectively, as appropriate) any Guaranty Losses that are not a BR Party
Caused Guaranty Loss or a Waypoint Party Caused Guaranty Loss. The Waypoint Guarantors shall be responsible for 49% of any Joint
Loss, and the BR Guarantors shall be responsible for 51% of any Joint Loss.

 

“Rohdie Caused
Guaranty Losses” means any Guaranty Losses that arise solely as a result of the acts or omissions of Rohdie or actions
taken by another Person at the direction of, or pursuant to any contract or subcontract entered into with Rohdie; provided,
however, if such action or omission (a) is Acquiesced to by a BR Party and a Waypoint Party, then the same shall not
be deemed a Rohdie Caused Guaranty Loss, but rather shall be deemed a Joint Loss among the Waypoint Guarantors and the BR Guarantor;
or (b) was undertaken at the written direction of a BR Party, then the same shall not be deemed a Rohdie Caused Guaranty Loss
but rather shall be deemed a BR Guarantor Caused Guaranty Loss.

 

    	 

    	 

    

 

“Waypoint Party”
means, any of (a) the Waypoint Guarantors, (b) any employee, agent, representative, officer or member (other than Rohdie)
of any of the Waypoint Guarantors, and (c) any Person, other than Managing Member or any Affiliate of Managing Member, that
acquires a membership interest in the Company from a Waypoint Party.

 

“Waypoint Party
Caused Guaranty Losses” means any Guaranty Losses that arise solely as a result of the acts or omissions of any Waypoint
Party or actions taken by another Person at the direction of, or pursuant to any contract or subcontract entered into with any
Waypoint Party; provided, however, if such action or omission (a) is Acquiesced to by a BR Party, then the same
shall not be deemed a Waypoint Party Caused Guaranty Loss, but rather shall be deemed a Joint Loss among the BR Guarantor and the
Waypoint Guarantors; or (b) was undertaken at the written direction of a BR Party, then the same shall not be deemed a Waypoint
Party Caused Guaranty Loss but rather shall be deemed a BR Party Caused Guaranty Loss.

 

“Person”
means any natural person, partnership, corporation, limited liability company and any other form of business or legal entity.

 

2.          Indemnity.
Subject to Section 3 below:

 

(a)          The
Waypoint Guarantors hereby jointly and severally indemnify and hold any BR Party and Rohdie harmless from and against (i) all Waypoint
Party Caused Guaranty Losses; and (ii) 49% of all Joint Losses.

 

(b)          The
Waypoint Guarantors additionally hereby jointly and severally indemnify and hold any BR Party harmless from and against all Rohdie
Caused Guaranty Losses.

 

(c)          Rohdie
hereby indemnifies and holds any Waypoint Party and any BR Party harmless from and againt all Rohdie Caused Guaranty Losses.

 

(d)          The
BR Guarantor hereby indemnifies and holds any Waypoint Party and Rohdie harmless from and against (i) all BR Party Caused Guaranty
Losses; and (ii) 51% of all Joint Losses.

 

3.          Limitations.
Notwithstanding anything to the contrary contained in this Agreement, the parties acknowledge and agree as follows:

 

(a)          In
no event shall the BR Guarantor have any obligation under this Agreement for any Guaranty Loss incurred by Rohdie that is a Waypoint
Party Caused Guaranty Loss.

 

(b)          The
Waypoint Guarantors acknowledge and agree that (i)  the BR Guarantor shall have the right to make payments to either Rohdie
or any Waypoint Party for any BR Party Caused Losses, as directed by Waypoint Guarantors; and (ii) whichever of Rohdie or the applicable
Waypoint Party who did not receive payment shall not have any claim against the BR Guarantor arising from any such election and
payment (e.g., if there are claims against the BR Guarantor by both Rohdie and a Waypoint Party and BR Guarantor makes a payment
to Rohdie at the direction of the Waypoint Guarantors for any or all of such claim, in no event shall Rohdie have the right to
make a claim against the BR Guarantor to the extent of such payment) (it being agreed that (x) as between Rohdie and any Waypoint
Party, the party actually receiving any such payment from the BR Guarantor shall equitably contribute a portion of such payment
to the party who did not receive such payment; and (y) in no event shall the foregoing provisions of clause (x) modify the
foregoing provisions of this clause ii) (e.g., the BR Guarantor shall not be required to comply with any such agreement
between Rohdie and any Waypoint Party and in no event shall the BR Guarantor have any liability to Rohdie or any Waypoint Party
in the event that Rohdie or any Waypoint Party does not comply with the provisions of such clause (x)).

 

    	 

    	 

    

  

(c)          In
the event that any BR Party acquires all of the membership interests in the Property Owner and the Company owned on the Effective
Date hereof by a Waypoint Party (a “BR Party 100% Acquisition Event”), then none of the Waypoint Guarantors
shall have any further obligations under this Agreement (provided that nothing contained herein shall constitute a release of Rohdie
from potential liability to Lender pursuant to any Mortgage Guaranty executed by him), except with respect to the Waypoint Guarantors’
liability for (i) Waypoint Party Caused Guaranty Losses based on events or circumstances occurring prior to the occurrence
of such BR Party 100% Acquisition Event, (ii) Joint Losses based on events or circumstances occurring prior to the occurrence of
such BR Party 100% Acquisition Event, and (iii) reasonable attorneys’ fees or defense costs for which the Waypoint Guarantors
are liable under Section 4. Following any release of the Waypoint Guarantors from future liability in accordance with
this Paragraph 3(c), the BR Guarantor shall remain fully liable for all obligations owing by the BR Guarantor to Rohdie
and any Waypoint Party under Paragraph 2(c) hereof (provided, however, that for these purposes and only in this limited
circumstance, the BR Guarantor shall be liable for 100% of any Joint Loss), the same to survive the occurrence of a BR Party 100%
Acquisition Event.

 

(d)          In
the event that any Waypoint Party (or a combination of more than one Waypoint Party) acquires all of the membership interests in
the Property Owner and the Company owned (indirectly or directly) on the Effective Date hereof by the Managing Member or another
BR Party (a “Waypoint Party 100% Acquisition Event”), then the BR Guarantor shall have no further obligations
under this Agreement, except with respect to the BR Guarantor’s liability for (i) BR Party Caused Guaranty Losses based
on events or circumstances occurring prior to the occurrence of such Waypoint Party 100% Acquisition Event, (ii) Joint Losses based
on events or circumstances occurring prior to the occurrence of such Waypoint Party 100% Acquisition Event, and (iii) reasonable
attorneys’ fees or defense costs for which the BR Guarantors are liable under Section 4. Following any release of
the BR Guarantor from future liability in accordance with this Paragraph 3(d), the Waypoint Guarantors shall remain fully
liable for all obligations owing by the Waypoint Guarantors to any BR Party and Rohdie under Paragraph 2(a) hereof
(provided, however, that for these purposes and only in this limited circumstance, the Waypoint Guarantors shall be liable for
100% of any Joint Loss), the same to survive the occurrence of a Waypoint Party 100% Acquisition Event.

 

(e)          The
liability under this Agreement of each of the Waypoint Guarantors and the BR Guarantor shall be strictly limited to the membership
interests in the Company or Property Owner held by the Waypoint Guarantors or the BR Guarantor, respectively, and no other assets
of the Waypoint Guarantors or the BR Guarantor shall be available for satisfaction of claims made under this Agreement.

 

4.          Claim
Mechanics.

 

(a)          If
Mortgage Guarantor receives a notice of claim from the Lender under the Mortgage Guaranty executed by such Mortgage Guarantor (any
such notice, a “Lender Claim Notice”) and believes that it is entitled to indemnification under this Agreement,
then as a condition to the obligations of any Guarantor under this Agreement, the Mortgage Guarantor:

 

    	 

    	 

    

 

(i)          shall
deliver a notice (the “Claim Notice”) to the other Guarantors (each a “Recipient Guarantor”
in such instance) stating the amount claimed (the “Claimed Amount”), together with (x) a description of the
basis for its belief that the Recipient Guarantors are liable for all or a portion of such amounts and (y) a copy of the Lender
Claim Notice;

 

(ii)         shall
take no action (such as admission of liability or payment to Lender of amounts in respect of the claim under the Mortgage Guaranty)
that would prejudice the Recipient Guarantors in defense of any such claim; provided, however, that (x) the Mortgage Guarantor
shall be permitted to disclose information and/or make payments pursuant to the order of any court of competent jurisdiction (a
“Court Order”) requiring such disclosure and/or payment and take any other action necessary to avoid prejudice
to Mortgage Guarantor, and (y) the Mortgage Guarantor shall promptly (but in all events within five (5) days of Mortgage Guarantor’s
receipt of such Court Notice) notify the Recipient Guarantors of such Court Order to permit the Recipient Guarantors to seek a
protective order or to take other appropriate action (provided that failure of the Mortgage Guarantor to so promptly notify Recipient
Guarantors shall not serve to relieve the Recipient Guarantors from their obligations under this Agreement unless such failure
prejudices the Recipient Guarantors with respect to defense of the underlying claim). The Mortgage Guarantor shall, if requested
by the Recipient Guarantors, cooperate (at no cost or expense to the Mortgage Guarantor) in the Recipient Guarantors’ efforts
to obtain an order barring such disclosure and/or payment;

 

(iii)        agrees
that if the Recipient Guarantor(s) agrees that the Claim Notice relates to a Guaranty Loss caused by the Recipient Guarantor(s),
then the Recipient Guarantors shall have the exclusive right to conduct the defense to any claim, demand or suit relating to such
Lender Claim Notice, as long as the Mortgage Guarantor is adequately protected as part of such defense; and

 

(iv)        agrees
that if the Recipient Guarantor(s) agrees that the Claim Notice relates to a Guaranty Loss that is a Joint Loss, then the Guarantors
shall jointly conduct the defense to any claim, demand or suit relating to such Lender Claim Notice, and the Waypoint Guarantors
shall pay 49% and the BR Guarantor shall pay 51% of the actual and reasonable attorneys’ fees and other actual and reasonable
costs actually incurred in connection with such defense; provided, however, if the parties under such circumstance cannot agree
on joint legal counsel or that the Lender Claim Notice relates to a Joint Loss, then each of the Guarantors shall be entitled to
conduct its own defense and the provisions of Paragraph 4(c)(i) through (iv) shall apply.

 

(b)          On
or before the date which is ten (10) days after receipt of the Claim Notice, the Recipient Guarantors shall either:

 

(i)          pay
the Claimed Amount to the Mortgage Guarantor or directly to Lender;

 

(ii)         deliver
notice to the Mortgage Guarantor that the Recipient Guarantors agree that the Recipient Guarantors are liable for the Claimed Amount
and that the Recipient Guarantors are electing to defend against the Lender Claim Notice; or

 

(iii)        deliver
a notice to the Mortgage Guarantor disputing that the Recipient Guarantors are liable for any portion of the Claimed Amount (it
being acknowledged that the Recipient Guarantors’ failure to respond shall be deemed delivery of a notice under this subparagraph
(iii) on the last day of such ten (10) day period).

 

    	 

    	 

    

  

(c)          Each
party to this Agreement agrees that, notwithstanding any provision herein to the contrary, if a Recipient Guarantor proceeds under
the provisions of Paragraph 4(a)(iii) or Paragraph 4(b)(ii) above but such Recipient Guarantor thereafter fails
to diligently defend against any such Lender Claim Notice, then after notice of such failure by the Mortgage Guarantor to such
Recipient Guarantor and the failure of such Recipient Guarantor to diligently commence such defense within 10 days of such notice
(it being agreed that notices to Lender disputing the Lender Claim Notice shall constitute commencement of defense against such
Lender Claim Notice and in such event the Recipient Guarantors shall not be required to commence litigation, arbitration or take
other actions to be deemed to be defending against any such Lender Claim Notice unless necessary to prevent prejudice to Mortgage
Guarantor):

 

(i)          the
Mortgage Guarantor shall have the right to conduct the defense to the applicable Lender Claim Notice;

 

(ii)         the
Mortgage Guarantor shall not be required to obtain the consent of such Recipient Guarantor to any settlement or resolution of any
matters arising from the applicable Lender Claim Notice (including, without limitation, any proposed payment to Lender);

 

(iii)        if
it is ultimately determined that such Lender Claim Notice relates to a Waypoint Party Caused Guaranty Loss or a BR Party Caused
Guaranty Loss, then the applicable Recipient Guarantor shall be required to pay all actual and reasonable attorneys’ fees
and other reasonable costs actually incurred by the Mortgage Guarantor in connection with such defense; and

 

(iv)        if
it is ultimately determined that such Lender Claim Notice relates to a Joint Loss, the Waypoint Guarantors shall be required to
pay 49% and the BR Guarantor shall be required to pay 51% of the actual and reasonable attorneys’ fees and other reasonable
costs actually incurred by the Mortgage Guarantor in connection with such defense.

 

(d)          For
the avoidance of doubt, nothing contained in this Section 4 shall limit Mortgage Guarantor from delivering more than one
Claim Notice as to any particular Lender Claim Notice.

 

5.          WAIVER
OF JURY TRIAL. THE PARTIES HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT
TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION HEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY
BY THE PARTIES, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY
WOULD OTHERWISE ACCRUE. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE
OF THIS WAIVER BY EACH OTHER PARTY, AS APPLICABLE.

 

    	 

    	 

    

 

6.          VENUE
AND JURISDICTION. THE PARTIES HEREBY CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF
NEW YORK, STATE OF NEW YORK AND IRREVOCABLY AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT
SHALL BE LITIGATED IN SUCH COURTS. THE PARTIES ACCEPT FOR THEMSELVES AND IN CONNECTION WITH THEIR PROPERTIES, GENERALLY AND UNCONDITIONALLY,
THE JURISDICTION OF THE AFORESAID COURTS AND WAIVE ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREE TO BE BOUND BY ANY
JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY LAW, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE TO SUCH VENUE AS BEING AN INCONVENIENT FORUM.

 

7.          Entire
Agreement; Writing Required. This Agreement constitutes the entire agreement between the parties with respect to the matters
referred to herein, and no modification or waiver of any of the terms hereof shall be effective unless in writing, signed by the
party to be charged with such modification or waiver.

 

8.          Governing
Law. This Agreement shall be governed by the laws of the State of New York, without regard for conflicts of laws principles
or otherwise.

 

9.          Severability.
Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement.

 

10.         Notices.
Any notice or request required or permitted to be given hereunder (each, a “Notice” or a “notice”)
shall be in writing and shall be (as elected by the party giving such notice) (i) transmitted by certified or registered mail,
return receipt requested, postage prepaid, (ii) transmitted by personal delivery, or (iii) transmitted by nationally recognized
overnight courier service. Except as otherwise specified herein, all notices and other communications shall be deemed to have been
duly given (a) five (5) Business Days after the date of posting if transmitted by certified or registered mail, (b) the date of
delivery if transmitted by personal delivery or (c) the first Business Day after the date of posting if delivered by nationally-recognized
overnight courier service. Each party may change its address for purposes hereof by notice given to the other parties. Notices
hereunder shall be directed:

 

To the Waypoint Guarantors,
at:

 

c/o Waypoint Residential,
LLC

555 North Point Center East, Suite 408

Alpharetta, Georgia 30022

Attn: Eric J. Hade, Esq.

 

With a copy to:

 

Reed Smith LLP

599 Lexington Avenue

New York, NT 10022

Attn: Thomas G. Maira, Esq.

 

To Rohdie, at:

 

Robert C. Rohdie

52 Vanderbilt Ave, Rm 2007

New York, NY 10017

 

    	 

    	 

    

  

With a copy to:

 

Wachtel Masyr & Missry LLP

885 Second Avenue, 47th Floor

New York, NY 10017

Attn: Chuck Rubenstein, Esq.

 

To the BR Guarantors, at:

 

c/o Bluerock Real Estate, L.L.C.

Heron Tower

70 East 55th Street, 9th Floor

New York, New York 10022

Attn: R. Ramin Kamfar

 

With a copy to:

 

c/o Bluerock Real Estate, L.L.C.

Heron Tower

70 East 55th Street, 9th Floor

New York, New York 10022

Attn: Michael L. Konig, Esq.

 

11.         Counterparts.
This Agreement may be executed in counterparts (including facsimile counterparts), each of which shall be deemed an original and
all of which taken together shall constitute the same instrument. All signatories hereto intend (as evidenced by their execution
hereof) that a facsimile copy and signature shall have the same effect as an original.

 

12.         No
Third Party Beneficiary; Recitals Incorporated. This Agreement does not create, and shall not be construed as creating, any
rights or claims enforceable by any person or entity other than the parties hereto, it being the intention of the parties hereto
that no one shall be deemed to be a third party beneficiary of this Agreement. The recitals set forth above are incorporated into
this Agreement as if fully set forth herein.

 

13.         Prevailing
Party Fees. To the fullest extent permitted by law, in the event of any litigation arising out of this Agreement, including,
but not limited to, any claim for amounts due under Section 4, the prevailing party shall be entitled to receive from the
losing party an amount equal to the prevailing party’s costs incurred in such litigation, including, without limitation,
the prevailing party’s reasonable attorneys’ fees, costs and disbursements. Additionally, if any Guarantor becomes
subject to any bankruptcy proceeding, other relief from creditors, receivership or similar proceedings (whether same are voluntary
or involuntary), then the other Guarantors shall be entitled to receive reimbursement for all costs and expenses (including, without
limitation, actual and reasonable attorneys’ fees, costs and disbursements) incurred by such other Guarantors in responding
to or participating in such proceeding from the Guarantor subject to such bankruptcy or similar proceeding. The provisions of this
Section 13 shall survive the termination of this Agreement.

 

    	 

    	 

    

 

14.         Other
Matters.  Separate and apart from the indemnities otherwise set forth herein, Bluerock Enhanced Multifamily Trust, Inc.
(“BEMT”) and Waypoint Enders Owner, LLC (“WPEO”) have each executed a letter delivered to (a) Enders Holdings,
LLC (“EH”) and HSH Nordbank, AG (“HSH”) (the “EH/HSH Indemnity Letter”) and (b) Jones Lang
LaSalle Americas, Inc. (“JLL”) (the “JLL Indemnity Letter”), in connection with a representation letter
in that JLL will be delivering solely for the benefit of BEMT in connection with certain financial information which BEMT has asked
its auditor, BDO USA, LLP (“BDO”) to review and/or audit (the “314 Rep Letter”). BEMT hereby indemnifies
WPOE against any losses incurred in connection with its execution and delivery of the EH/HSH Indemnity Letter or the JLL Indemnity
Letter, upon which WPOE is not a party to and WPOE hereby acknowledges that it has not relied upon in any respect, and BEMT acknowledges
that this indemnity in favor of WPOE will indemnify and hold harmless WPOE from and against any and all claims, demands or the
cost or expense thereof, including reasonable attorney’s fees, arising out of any claim made against it by EH or HSH under
the EH/HSH Indemnity Letter or by JLL under the JLL Indemnity Letter.

 

15.         Further
Assurances. Each party hereto agrees that it will without further consideration execute and deliver such other documents and
take such other action, subsequent to the Effective Date as may be reasonably requested by another party hereto to consummate more
effectively the purposes or subject matter of this Agreement at no material out-of-pocket cost to such party.

 

[SIGNATURES ON FOLLOWING PAGES]

 

    	 

    	 

    

 

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the Effective Date.

 

	 	WAYPOINT GUARANTORS:
	 	 	 
	 	 	WAYPOINT ENDERS INVESTORS LP, 
	 	 	a Delaware limited partnership

 

	 	By:	Waypoint Enders GP, LLC,
	 	 	a Delaware limited liability company
	 	Its:	General Partner

 

	 	By:	/s/ Linda Lewis	 
	 	Name: Linda Lewis 
	 	Title: Authorized Signatory

 

	 	WAYPOINT ENDERS GP, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: 	/s/ Linda Lewis	 
	 	Name: Linda Lewis
	 	Title: Authorized Signatory

 

	 	ROBERT C. ROHDIE, an Individual:	 
	 	 
	 	/s/ Robert C. Rohdie	 
	 	ROBERT C. ROHDIE

  

     

     

    

 

BR GUARANTOR:

 

	BR ENDERS MANAGING MEMBER, LLC,	 
	a Delaware limited liability company	 
	 	 
	By: Bluerock Special Opportunity + Income III, LLC	 
	a Delaware limited liability company	 
	Its: Manager	 
	 	 
	By: BR SOIF III Manager, LLC	 
	a Delaware limited liability	 
	Its: Manager	 
	 	 
	By:	/s/ Jordan B. Ruddy	 
	Name:  Jordan B. Ruddy	 
	Its:  President	 

 

     

     

    

 

	 	FOR PURPOSES OF SECTION 14 ONLY:
	 	 
	 	 	BLUEROCK ENHANCED MULTIFAMILY TRUST, INC.,
	 	 	a Maryland corporation

 

	 	By:	/s/ Jordan B. Ruddy	 
	 	Name: Jordan B. Ruddy
	 	Its: President

 

	 	WAYPOINT ENDERS OWNERS, LLC,
	 	a Delaware limited liability company

 

	 	By:	Waypoint Bluerock Enders JV, LLC,
	 	 	a Delaware limited liability company
	 	Its:	Managing Member

 

	 	By:	BR Enders Managing Member, LLC,
	 	 	a Delaware limited liability company
	 	Its:	Managing Member

 

	 	By:	Special Opportunity + Income Fund III, LLC,
	 	 	a Delaware limited liability company
	 	Its:	Managing Member

 

	 	By:	BR SOIF III Manager, LLC,
	 	 	a Delaware limited liability company
	 	Its:	Manager

 

	 	By:	/s/ Jordan B. Ruddy	 
	 	Name: Jordan B. Ruddy
	 	Its: President

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