EXHIBIT 10.1

PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS

by and between

RML Construction, LLP, a Kentucky limited liability partnership

(“Seller”)

as Owner of 100% of the Membership Interests in

Forty/57, LLC, a Kentucky limited liability company

(“Property Owner”)

and

STEADFAST ASSET HOLDINGS, INC.,
a California corporation

(“Buyer”)

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TABLE OF CONTENTS
Page No.
1.PURCHASE AND SALE.    1
1.1Property    1
1.2No Warranty    2
2.PURCHASE PRICE.    2
3.PAYMENT OF PURCHASE PRICE.    2
3.1Deposit    3
3.2Remainder of Purchase Price    3
3.3Buyer Default; Liquidated Damages    3
3.4Seller Default; Specific Performance    4
4.ESCROW INSTRUCTIONS.    4
4.1Opening of Escrow    4
4.2Conditions to Close    5
4.3Recordation and Transfer    6
5.CLOSING.    6
5.1Generally    6
5.2Extension Option    6
6.BUYER’S REVIEW.    6
6.1Delivery of Documents    6
6.2Access    7
6.3Title and Survey.    8
6.4Buyer’s Due Diligence    9
6.5Buyer’s Termination Right    9
6.6Contracts    9
6.7Radon Holdback    9
7.REPRESENTATIONS AND WARRANTIES.    10
7.1Seller’s Representations and Warranties    10
7.2Buyer’s Representations and Warranties    16
8.COVENANTS.    17
8.1Seller    17
8.2Buyer    20
9.ADJUSTMENTS AND PRORATIONS.    20
9.1Generally    21
9.2Rental Income    21
9.3Proration Period    21
9.4Rent Ready    21
10.CLOSING DOCUMENTS.    22
10.1Seller’s Deliveries    22
10.2Buyer’s Deliveries    23
10.3Other Closing Documents    23
10.4Closing Documents    23
11.COSTS    23

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12.CASUALTY OR CONDEMNATION    24
13.ATTORNEYS’ FEES    24
14.ASSIGNMENT    24
15.WAIVER    24
16.GOVERNING LAW    25
17.NOTICES    25
18.ENTIRE AGREEMENT    25
19.COUNTERPARTS; COPIES    26
20.AUTHORITY    26
21.RECORD ACCESS AND RETENTION.    26
22.CONTRACT CONSIDERATION    27
23.JURY TRIAL WAIVER    27
24.COUNSEL    27
25.EQUAL PARTICIPATION    27
26.TAX-FREE EXCHANGE    27

EXHIBITS
Exhibit “A”
Real Property Description
Exhibit “B”
Personal Property Description
Exhibit “C”
Due Diligence Documents
Exhibit “D”
Form of Membership Interests Assignment and Assumption
Exhibit “E”
Form of General Assignment
Exhibit “F”
Form of Bill of Sale
Exhibit “G”
Form of Non-Foreign Certificate
Exhibit “H”
Form of Tenant Notice
Exhibit “I”
Form of Deed

SCHEDULES
Schedule 1
Leases
Schedule 2
Contracts
Schedule 3
Approvals
Schedule 4
Rent Roll
Schedule 5
Organizational Documents
Schedule 6
Statement of Liabilities

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LIST OF DEFINED TERMS
Agreement
1

Approvals
2

Business Day
3

Buyer
1

Close of Escrow
6

Closing
6

Closing Date
6

Closing Documents
23

Contracts
2

Date of Closing
6

Deposit
3

Due Diligence Period
9

Environmental Laws
7

ERISA
16

Escrow
4

Escrow Holder
3

Executive Order
16

General Assignment
22

Hazardous Substances
7

Initial Deposit
3

Intangible Property
2

Leases
2

Lenders
16

Membership Interests
1

New Title Matter
8

Objections
8

OFAC
16

Opening of Escrow
5

Outside Closing Date
6

Permitted Exceptions
8

Personal Property
2

Property
1

Property Owner
1

Purchase Price
2

Real Property
1

Release
7

Seller
1

Seller Deliveries
7

Seller's Cure Period
8

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Settlement Statement
5

Title Commitment
8

Title Objection Notice
8

Title Objection Period
8

Title Policy
24

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PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS

This PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is
made and entered into as of the 5th day of November, 2012, by and between RML
Construction, LLP, a Kentucky limited liability partnership (“Seller”), and
STEADFAST ASSET HOLDINGS, INC., a California corporation (“Buyer”), with
reference to the following facts:
RECITALS:
A.Seller is the owner of 100% of the membership interests (“Membership
Interests”), in Forty/57, LLC, a Kentucky limited liability company (“Property
Owner”).
B.Property Owner is, or as of the Closing Date will be, the fee simple owner of
that certain land with a multifamily residential project commonly known as Forty
57 at Glasford Apartments, consisting of 436 units situated thereon, located at
4057 Mooncoin Way, Lexington, KY, and more particularly described in Exhibit “A”
attached hereto, together with all structures, improvements, machinery, fixtures
and equipment affixed or attached to the land (collectively referred to herein
as the “Real Property”).
C.Seller desires to sell the Membership Interests and all rights pertaining
thereto, along with certain related personal and intangible property, to Buyer,
and Buyer desires to purchase such Membership Interests and related rights from
Seller in accordance with the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth,
the parties hereto mutually agree as follows:
1.PURCHASE AND SALE.
1.1    Property. Subject to the terms and conditions of this Agreement, and for
the consideration herein set forth, Seller agrees to sell and transfer, and
Buyer agrees to purchase and acquire, the Membership Interests and all rights,
title and privileges of Seller relating thereto. After the Closing, Seller will
have no right, title or interest in Property Owner or any of its assets or
property (including, without limitation, the Property, as hereinafter defined).
Property Owner is, or as of the Closing Date will be, the owner of the following
(collectively, the “Property”):
1.1.1    The Real Property;
1.1.2    All easements, licenses, interests, rights, privileges, tenements,
hereditaments and appurtenances on or in anywise appertaining to the Real
Property;
1.1.3    All equipment, tools, machinery, materials, furniture, furnishings,
supplies and other tangible personal property owned by Property Owner and
located on or used in connection with or arising out of the ownership,
management or operation of the Real Property as of the date hereof, as more
particularly described in Exhibit “B” attached hereto (collectively, “Personal
Property”);

    
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1.1.4    All leases and occupancy agreements relating to the Property in effect
on the Date of Closing (as hereinafter defined), including all amendments
thereto (collectively, “Leases”) (the Leases in effect on the date of this
Agreement are identified on Schedule 1 attached hereto);
1.1.5    Subject to Section 6.6 below, all service, maintenance, supply or other
contracts relating to the operation of the Property in effect as of the date
hereof (including without limitation all warranties and license agreements),
which are identified on Schedule 2 attached hereto (collectively, “Contracts”);
1.1.6    All licenses, permits, certificates of occupancy and governmental
approvals relating to the Property, including without limitation those
identified on Schedule 3 attached hereto (collectively, “Approvals”) and any
plans, specifications, studies, reports or surveys relating to the Property; and
1.1.7    All entitlements and intangible personal property in connection with or
arising out of the ownership of the Real Property, including, without
limitation, all trade names and logos, and, unless otherwise expressly agreed to
by Buyer, all web domains, websites, and internet addresses (the “Intangible
Property”); provided, however that Seller shall retain a non-exclusive right
(with Buyer, Property Owner, and affiliates of each) after the Closing Date to
use the name "Glasford" with respect to property owned by Seller or an affiliate
of Seller adjacent to the Real Property.
Included in the Property shall be any and all the foregoing items in which any
affiliate of Property Owner (including Seller) has any right, title or interest,
to the extent the same is used solely in connection with the Real Property
unless otherwise expressly agreed to by Buyer; it being understood and agreed
that Seller shall cause such affiliate to convey the same to Buyer at Closing.
1.2    No Warranty. Subject to the representations, warranties and covenants of
Seller set forth in this Agreement, Seller is selling and Buyer is purchasing
the Membership Interests “AS IS WHERE IS” with all faults.
2.    PURCHASE PRICE.
The total purchase price (“Purchase Price”) to be paid by Buyer to Seller for
the Property shall be FIFTY-THREE MILLION SIX HUNDRED THOUSAND AND 00/100
DOLLARS ($53,600,000.00), payable all in cash.
3.    PAYMENT OF PURCHASE PRICE.
The Purchase Price shall be paid as follows:

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3.1    Deposit. As part of the Opening of Escrow (as defined below), Buyer shall
deliver to Chicago Title Insurance Company (“Escrow Holder”), which has an
address of 4041 MacArthur Blvd # 490, Newport Beach, CA 92660, Attn. Rick
Fortunato, the sum of FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($500,000.00)
(“Initial Deposit”) in immediately available funds as a good faith deposit. The
Initial Deposit and all interest earned thereon shall be collectively referred
to in this Agreement as the “Deposit“. At Buyer’s discretion, Escrow Holder
shall place the Deposit in one or more government insured interest-bearing
accounts (at Buyer’s discretion) satisfactory to Seller and Buyer (which shall
have no penalty for early withdrawal), and shall not commingle the Deposit with
any funds of Escrow Holder or any other person or entity. All interest earned on
the Deposit shall be included within the meaning of the term “Deposit” in this
Agreement. If Closing occurs in accordance with this Agreement, the Deposit
shall be applied against the Purchase Price. The Deposit shall be returned to
Buyer within one (1) Business Day if (y) Buyer elects to terminate this
Agreement in accordance with Section 6.5 below or (z) Escrow fails to close due
to (i) Seller’s breach of this Agreement, (ii) the failure of a condition to
close under Section 4.2 (other than a failure of Buyer to deliver funds or
instruments under Section 4.2.2 or a breach by Buyer under Section 4.2.4), or
(iii) a casualty or condemnation event as described in Section 12 below occurs.
In the event of a termination of this Agreement by either Seller or Buyer for
any reason other than pursuant to Section 6.5, Escrow Holder is authorized to
deliver the Deposit to the party hereto entitled to same pursuant to the terms
hereof on or before the tenth (10th) Business Day following receipt by Escrow
Holder and the non-terminating party of written notice of such termination from
the terminating party, unless the other party hereto notifies Escrow Holder that
it disputes the right of the other party to receive the Deposit. In such event,
Escrow Holder may interplead the Deposit into a court of competent jurisdiction
in the county in which the Deposit has been deposited. All attorneys’ fees and
costs and Escrow Holder’s costs and expenses incurred in connection with such
interpleader shall be assessed against the party that is not awarded the
Deposit, or if the Deposit is distributed in part to both parties, then in the
inverse proportion of such distribution. As used in this Agreement, “Business
Day” means any day other than a Saturday or Sunday or a legal holiday on which
commercial banks are authorized or required to be closed for business in the
State of California.
3.2    Remainder of Purchase Price. On or before the Closing Date, Buyer shall
deposit into Escrow immediately available funds in an amount which, when added
to the Deposit, will equal the Purchase Price plus any additional amounts
necessary to cover costs and/or prorations under this Agreement.

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3.3    Buyer Default; Liquidated Damages. SELLER AND BUYER AGREE THAT, IF THE
PURCHASE AND SALE OF THE MEMBERSHIP INTERESTS IS NOT COMPLETED AND THIS
AGREEMENT TERMINATES BECAUSE BUYER MATERIALLY DEFAULTS UNDER OR MATERIALLY
BREACHES THIS AGREEMENT (AFTER WRITTEN NOTICE AND A REASONABLE OPPORTUNITY TO
CURE), THE DEPOSIT SHALL BE PAID TO SELLER UPON TERMINATION OF THIS AGREEMENT
AND RETAINED BY SELLER AS LIQUIDATED DAMAGES AND AS SELLER’S SOLE REMEDY AT LAW
OR IN EQUITY. SELLER AND BUYER AGREE THAT, UNDER THE CIRCUMSTANCES EXISTING AS
OF THE DATE OF THIS AGREEMENT, ACTUAL DAMAGES MAY BE DIFFICULT TO ASCERTAIN AND
THE DEPOSIT IS A REASONABLE ESTIMATE OF THE DAMAGES THAT WILL BE INCURRED BY
SELLER IF BUYER MATERIALLY DEFAULTS UNDER OR MATERIALLY BREACHES THIS AGREEMENT
AND FAILS TO PURCHASE THE MEMBERSHIP INTERESTS.
SELLER'S INITIALS:
DRB
 
BUYER'S INITIALS:
AMDR

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3.4    Seller Default; Specific Performance. If Seller fails to consummate the
sale of the Membership Interests and/or fails to transfer all the Property to
Property Owner on or prior to the Closing Date pursuant to this Agreement or
otherwise materially defaults on its obligations hereunder at or prior to
Closing for any reason except failure by Buyer to perform hereunder, or if prior
to Closing any one or more of Seller’s representations or warranties are
breached in any material respect, and such default or breach is not cured by the
earlier of the third (3rd) Business Day after written notice thereof from Buyer
or the Closing Date (Buyer hereby agreeing to give such written notice to Seller
within three (3) Business Day after Buyer first learns of any such default or
breach by Seller, except no notice or cure period shall apply if Seller fails to
consummate the sale of the Membership Interests hereunder), Buyer may elect to
(a) terminate this Agreement by giving Seller timely written notice of such
election prior to or at Closing and recover the Deposit and any and all costs
incurred to date, (b) enforce specific performance to consummate the sale of the
Membership Interests hereunder, (c) waive said failure or breach and proceed to
Closing without any reduction in the Purchase Price, or (d) exercise any other
remedies at law or in equity. Notwithstanding anything herein to the contrary,
Buyer shall be deemed to have elected to terminate this Agreement if Buyer fails
to deliver to Seller written notice of its intent to file a claim or assert a
cause of action for specific performance against Seller on or before ten (10)
Business Days following the Outside Closing Date or, having given such notice,
fails to file a lawsuit asserting such claim or cause of action in the county in
which the Property is located within two months following the Outside Closing
Date. Buyer’s remedies shall be limited to those described in this Section 3.4
and Section 13. In the event that Buyer elects to terminate this Agreement under
subsection (a) above, then Seller's obligation to reimburse Buyer's costs
incurred to date shall be capped at $150,000 plus any rate lock or commitment
fees paid by Buyer to any potential lender unless such default or breach by
Seller constitutes an Intentional Seller Default (as hereinafter defined. For
purposes of this Agreement, “Intentional Seller Default” means any one or more
of the following: (a) intentional or grossly negligent breach by Seller of any
of its obligations under this Agreement, (b) if Seller had actual knowledge that
any representation or warranty was untrue when made, or Seller fraudulently made
such representation or warranty, (c) failure to deliver (or cause to deliver)
any of the documents required under Section 10 of this Agreement, or (d) any
intentional act of Seller taken on or after the Effective Date that results in
Purchaser’s inability to consummate the transaction contemplated in this
Agreement.
4.    ESCROW INSTRUCTIONS.
4.1    Opening of Escrow. Within three (3) Business Days after the mutual
execution of this Agreement by Seller and Buyer, the parties shall open an
escrow (“Escrow”) with Escrow Holder in order to consummate the purchase and
sale in accordance with the terms and provisions hereof by (i) Buyer delivering
to Escrow Holder the Initial Deposit and (ii) Buyer and Seller delivering to
Escrow Holder their respective executed counterparts of this Agreement
(collectively, the “Opening of Escrow”). Escrow Holder shall deliver written
confirmation of the date of the Opening of Escrow to the parties in the manner
set forth in Section 17 of this Agreement. This Agreement shall be countersigned
by Escrow Holder and the provisions hereof shall constitute joint primary escrow
instructions to Escrow Holder; provided, however, that the parties shall execute
such additional instructions as requested by Escrow Holder not inconsistent with
the provisions hereof.

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4.2    Conditions to Close. Escrow shall not close unless and until the
following conditions precedent and contingencies have been satisfied or waived
in writing by the party for whose benefit the conditions have been included:
4.2.1    All contingencies described in Section 6 below have either been
satisfied or waived in writing by Buyer.
4.2.2    All funds and instruments described in Sections 3 and 10 have been
delivered to Escrow Holder and Seller and Buyer have approved, executed and
delivered a settlement statement reflecting the Purchase Price, all prorations,
and all closing costs as required under this Agreement (the “Settlement
Statement”), which shall include the mutually agreed amount of the Radon
Holdback (as hereinafter defined) or credit as determined under Section 6.7
below.
4.2.3    Seller shall have caused the title department of Escrow Holder to have
irrevocably committed to Buyer in writing to issue an ALTA extended owner’s
policy of title insurance, in form and content acceptable to Buyer in its sole
and absolute discretion, insuring Buyer’s fee simple title to the Real Property
in an amount equal to the Purchase Price subject only to the Permitted
Exceptions.
4.2.4    Seller and Buyer shall each have materially performed, observed and
complied with all covenants, agreements and conditions required by this
Agreement to be performed, observed and/or complied with by such party prior to,
or as of, the Closing.
4.2.5    Seller’s representations and warranties contained herein shall be true
and correct in all material respects as of the date hereof and as of the Closing
Date, except for representations and warranties made as of, or limited by, a
specific date, which will be true and correct in all material respects as of the
specified date or as limited by the specified date.
4.2.6    There shall exist no pending or threatened actions, suits,
arbitrations, claims, attachments, proceedings, assignments for the benefit of
creditors, insolvency, bankruptcy, reorganization or other proceedings, against
the other party that would materially and adversely affect that party’s ability
to perform its obligations under this Agreement.
4.2.7    Unless otherwise approved by Buyer in its sole discretion, the
stabilized physical occupancy of the Property shall average 90% or greater for
the past 90 days of occupancy with rents under any Leases executed or extended
from and after the date hereof being not less than the current rents set forth
on the rent roll set forth on Schedule 4 attached hereto attached hereto and
with no free rent periods or other economic concessions during said 90 day
period.
4.2.8    Buyer and Seller shall mutually agree to the terms of an easement
agreement prior to the expiration of the Due Diligence Period for the access to
and maintenance of the signage on the Real Property at the corner of Man O' War
Boulevard and Osborn Way by Seller and, if Buyer fails to do so, the maintenance
of the entrance island (from Man O' War Boulevard) and the banks adjacent
thereto (the "Easement"), to be executed by Property Owner and the Glasford
Homeowner's Association and recorded on the Closing Date in Fayette County,
Kentucky.

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4.2.9    Seller shall have conveyed all of the Property to Property Owner on the
Closing Date.
4.3    Recordation and Transfer. Upon satisfaction of the conditions set forth
in Section 4.2 above, Escrow Holder shall transfer the Membership Interests as
follows:
4.3.1    Intentionally omitted;
4.3.2    Deliver to the parties entitled thereto the other Closing Documents (as
hereinafter defined); and
4.3.3    Disburse all funds deposited with Escrow Holder by Buyer in payment of
the Purchase Price for the Membership Interests (subject to applicable
prorations) to Seller or, for closing costs, to the party entitled thereto, all
as set forth in the Settlement Statement.
5.    CLOSING.
5.1    Generally. Escrow shall close upon the delivery and acceptance of the
Assignment in accordance with the provisions of this Agreement (“Date of
Closing“, “Closing Date“, “Closing“ or “Close of Escrow”). The Close of Escrow
shall occur on a date selected by Buyer, but in no event later December 31, 2012
(“Outside Closing Date”) at the office of Escrow Holder (or such other location
as may be mutually agreed upon by Seller and Buyer), unless otherwise extended
(i) by operation of Sections 6.3, 12 or 21 below, (ii) by Buyer pursuant to
Section 5.2 below, or (iii) by written agreement between Buyer and Seller. Time
is of the essence with respect to the Outside Closing Date and all dates and
time-periods set forth in this Agreement.
5.2    Extension Option. Intentionally omitted.
6.    BUYER’S REVIEW.
6.1    Delivery of Documents. Within three (3) days after the Opening of Escrow,
Seller shall, at the sole expense of Seller, deliver to Buyer or, solely with
respect to the items that are difficult or costly to copy (due to size or
volume), make available to Buyer at the Property, copies (which shall be in
electronic format to the extent possible) all documents pertaining to the
Property that have been prepared by, for or at the request of Seller or are in
the possession or control of, or are reasonably available to, Seller, including,
without limitation, the documents listed on Exhibit “C” attached hereto and all
organizational documents of Property Owner, including without limitation any
operating agreement, articles of organization, membership certificates or other
similar documents, all of which are described on Schedule 5 attached hereto
(collectively, the “Organizational Documents”, and collectively with the
documents listed on Exhibit C, the “Seller Deliveries”). Seller hereby
acknowledges and agrees that the following are in the possession of or control
of, or are reasonably available to, Seller and will be provided as required in
the previous sentence: monthly operating statements (year-to-date and 3-year
historical); year-end financial statements, audited if available (past 3 years);
general ledger (year-to-date and 3-year historical); and copies of all Leases.

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As used in this Agreement, the following definitions shall apply: “Environmental
Laws” shall mean all federal, state and local laws, ordinances, rules and
regulations now or hereafter in force, as amended from time to time, in any way
relating to or regulating human health or safety, or industrial hygiene or
environmental conditions, or protection of the environment, or pollution or
contamination of the air, soil, surface water or groundwater, and includes the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42
U.S.C. § 9601, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §
6901, et seq., the Clean Water Act, 33 U.S.C. § 1251, et seq., and the Hazardous
Substance Account Act. “Hazardous Substances” shall mean any substance or
material that is described as a toxic or hazardous substance waste or material
or a pollutant or contaminant, or words of similar import, in any of the
Environmental Laws, and includes asbestos, petroleum (including crude oil or any
fraction thereof, natural gas, natural gas liquids, liquefied natural gas, or
synthetic gas usable for fuel, or any mixture thereof), petroleum products,
polychlorinated biphenyls, urea formaldehyde, radon gas, radioactive matter,
medical waste, and chemicals which may cause cancer or reproductive toxicity.
“Release” shall mean any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, dumping or disposing into
the environment, including continuing migration, of Hazardous Substances into or
through soil, surface water or groundwater.
6.2    Access. Commencing upon the execution of this Agreement by Buyer and
Seller, Seller shall allow (or cause to be allowed) Buyer or Buyer’s agents,
employees, contractors, lenders or representatives access to the Property for
purposes of any non-intrusive physical or environmental test, study or
inspection of the Property and, to the extent copies are not provided to Buyer
by Seller pursuant to Section 6.1, review and copying of Seller’s books and
records relating to the Membership Interests and/or the Property and any of the
documents described in Section 6.1 above, and other matters necessary in the
discretion of Buyer to evaluate and analyze the feasibility of the Membership
Interests and the Property for Buyer’s intended use thereof. Buyer shall not
conduct or authorize any physically intrusive testing of, on, or under the
Property without first obtaining Seller’s consent as to the timing and scope of
work to be performed, which consent shall not be unreasonably withheld,
conditioned or delayed. Seller hereby acknowledges and agrees that Buyer or
Buyer’s representatives may communicate with any governmental authority or
quasi-governmental authority for the purpose of gathering information in
connection with the Membership Interests, the Property or the Seller, or the
transaction contemplated by this Agreement.

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6.3    Title and Survey.
6.3.1    Within three (3) days after the Opening of Escrow, Seller shall cause
Escrow Holder to issue to Buyer a current commitment for an owner’s policy of
title insurance in the amount of the Purchase Price on an ALTA 2006 form (“Title
Commitment”) together with copies of all documents of record reflected therein
as exceptions to title at Seller’s sole cost and expense (as provided in Section
11 below). Buyer shall have thirty (30) days following its receipt of the Title
Commitment (“Title Objection Period”) in which to notify Seller in writing of
any objections Buyer has, in Buyer’s sole and absolute discretion, to any
matters shown on the Title Commitment (“Title Objection Notice”). All objections
raised by Buyer in the manner herein provided are hereafter called “Objections.”
Subject to the limitations set forth in the penultimate sentence of this Section
6.3.1, Seller shall make reasonable efforts to remedy or remove all Objections
(or agree irrevocably in writing to remedy or remove all such Objections at or
prior to Closing) within fifteen (15) days following Seller’s receipt of the
Title Objection Notice (“Seller’s Cure Period”). In the event Seller is unable
to remedy or cause the removal of any Objections (or agree irrevocably to do so
at or prior to Closing) within Seller’s Cure Period, then Buyer, within ten (10)
days after the expiration of Seller’s Cure Period, shall deliver to Seller
written notice electing, in Buyer’s sole and absolute discretion, to either (i)
terminate this Agreement, or (ii) unconditionally waive any such Objections,
failing which Buyer shall conclusively be deemed to have elected (i) above. Any
new title or survey information received by Seller or Buyer after the expiration
of the Title Objection Period or Seller’s Cure Period, as applicable, from a
supplemental title report, survey or other source which is not the result of the
acts or omissions of Buyer or its agents, contractors or invitees (each, a “New
Title Matter”) shall be subject to the same procedure provided in this Section
6.3 (and the Date of Closing shall be extended commensurately if the Closing
would have occurred but for those procedures being implemented for a New Title
Matter), except that the Buyer’s Title Objection Period and Seller’s Cure Period
for any New Title Matters shall be five (5) Business Days each. Close of Escrow
shall be delayed as needed to accommodate such additional time periods. Seller
shall have no obligation to cure title objections except financing liens of an
ascertainable amount created by, under or through Seller or Property Owner,
which liens Seller shall cause to be released at or prior to Closing (with
Seller having the right to apply the Purchase Price or a portion thereof for
such purpose), and Seller shall deliver the Membership Interests and the
Property free and clear of any such financing liens. Seller further agrees to
remove any exceptions or encumbrances to title which are voluntarily created by,
under or through Seller or Property Owner after the date hereof without Buyer’s
consent. The term “Permitted Exceptions” shall mean: the specific exceptions
(excluding exceptions that are part of the promulgated title insurance form) in
the Title Commitment that Escrow Holder is not permitted to remove; other
exceptions to which Buyer has not raised an Objection as provided herein or has
subsequently waived such Objection in writing and that Seller is not required to
remove as provided above; items shown on the Survey which have not been removed
as of the end of the Due Diligence Period; real estate taxes not yet due and
payable; and rights of tenants (as tenants only) under the Leases.

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6.3.2    Within three (3) days after the Opening of Escrow, Seller shall provide
Buyer with a copy of any existing survey of the Property in Seller’s possession
or control. Buyer, at its sole cost and expense, may elect to obtain a new
survey or revise, modify, or re-certify an existing survey of the Property as
necessary in order for the title department of Escrow Holder to delete the
survey exception from title or to otherwise satisfy Buyer’s objectives.
6.4    Buyer’s Due Diligence. Subject to Section 21 below, Buyer shall have
twenty-five (25) Business Days from and after the later to occur of (i) the
Opening of Escrow and (ii) the date of delivery by Seller to Buyer of the
Seller's Deliveries, the Title Commitment and related recorded exception
documents, and any existing survey (“Due Diligence Period”) to evaluate and
analyze the feasibility of the Membership Interests and the Property for Buyer’s
intended use thereof, including, without limitation, the zoning of the Property,
the physical, environmental and geotechnical condition of the Property and the
economic feasibility of owning the Membership Interests and operating the
Property. If, during the Due Diligence Period, Buyer determines that the
Membership Interests or the Property are not acceptable for any reason
whatsoever in Buyer’s sole and absolute discretion, Buyer shall have the right,
by giving written notice to Seller on or before the last day of the Due
Diligence Period, to terminate this Agreement. Buyer agrees to indemnify and
hold Seller harmless and defend Seller from and against any claims, liabilities,
liens, cause of action, expenses, costs, or damages (including reasonable
attorneys’ fees and personal injury claims) resulting from the inspection of the
Property prior to the Closing Date by Buyer or Buyer’s contractors, employees,
representatives, or agents; provided, however, that Buyer shall not be
responsible for any losses or expenses resulting from the discovery of adverse
information regarding the Membership Interests or the Property. In the event
this Agreement is terminated for any reason, Buyer shall restore the Property to
the extent of any physical change or damage made as a result of the conduct of
any inspection or investigation of the Property by Buyer or Buyer’s agents,
representatives or contractors to substantially the same condition that existed
immediately prior to Buyer’s inspection and investigation. Any provision to the
contrary herein notwithstanding, the provisions of the previous two sentences
shall survive termination of this Agreement for any reason for a period of three
(3) months and control over any provisions to the contrary herein.
6.5    Buyer’s Termination Right. If Buyer exercises the right to terminate this
Agreement in accordance with Sections 6.3 (including without limitation for any
New Title Matter) or 6.4 hereof, this Agreement shall terminate as of the date
the termination notice is given by Buyer (except as to such matters that are
expressly specified to survive the termination of this Agreement), and Escrow
Holder shall return the Deposit to Buyer If Buyer does not exercise the right to
terminate this Agreement in accordance with Sections 6.3 or Section 6.4 hereof,
this Agreement shall continue in full force and effect and the Deposit shall
become non-refundable except as provided in Section 3.1 above.
6.6    Contracts. On or before the expiration of the Due Diligence Period, Buyer
shall notify Seller in writing as to which of the Contracts Buyer elects to have
continue after Closing, in Buyer’s sole and absolute discretion. Seller shall
notify the vendors under those Contract(s) which Buyer has not agreed to have
continue after Closing and, provided that Closing occurs hereunder, such
Contracts shall terminate effective as of the Date of Closing.

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6.7    Radon Holdback. On or before the expiration of the Due Diligence Period,
Buyer and Seller shall mutually agree upon the amount of proceeds of the
Purchase Price that will either (a) be held in escrow by Escrow Agent after
Closing pending completion of additional long-term (i.e., 90-day) testing with
respect to potential radon required by Buyer's lender (the "Radon Holdback") or
(b) in the event that such additional long-term testing is not to be conducted,
be credited against the Purchase Price for mitigation otherwise mutually agreed
to be necessary. Promptly after Opening of Escrow, Buyer or Buyer's lender, at
Buyer's cost, shall obtain a third-party estimate of the costs of mitigation of
the Potential Radon (as hereinafter defined). In the event that the additional
long-term testing is to be conducted, the Radon Holdback will be released (in
whole or in part, as applicable): (i) to Seller if and to the extent such
testing reveals mitigation is not required, or (ii) to Buyer if and to the
extent such testing reveals mitigation is required.
7.    REPRESENTATIONS AND WARRANTIES.
7.1    Seller’s Representations and Warranties. The representations, warranties
and covenants of Seller in this Section 7.1 are a material inducement for Buyer
to enter into this Agreement. Buyer would not purchase the Membership Interests
without such representations, warranties and covenants of Seller. Such
representations, warranties and covenants shall survive the Closing for nine (9)
months. Seller represents, warrants and covenants to Buyer as of the date of
this Agreement and as of the Closing Date as follows:
7.1.1    Seller is a limited liability partnership duly organized and validly
existing and in good standing under the laws of the State of Kentucky. Seller
has full power and authority to enter into this Agreement and to perform this
Agreement, including, without limitation, all right, power and authority to
assign, deliver and transfer the Membership Interests as provided by this
Agreement. The execution, delivery and performance of this Agreement by Seller
have been duly and validly authorized by all necessary action on the part of
Seller and all required consents and approvals have been duly obtained. This
Agreement is a legal, valid and binding obligation of Seller, enforceable
against Seller in accordance with its terms. There is no agreement to which
Seller or Property Owner is a party or, to Seller’s knowledge, that is binding
on Seller or Property Owner which is in conflict with this Agreement. At
Closing, Seller will convey good and valid title to the Membership Interests to
Buyer.

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7.1.2    Seller is the record and beneficial owner of the Membership Interests.
Seller has not previously transferred or assigned or otherwise encumbered all or
any portion of the Membership Interests and owns the Membership Interests free
and clear of any right, claim, lien, encumbrance, pledge or hypothecation
thereof or interest in favor of any other person. Seller has not granted to any
person other than Buyer any options, rights of first offer, rights of first
refusal or any other agreement of any kind to purchase or otherwise acquire all
or any portion of the Membership Interests. Except for the Organizational
Documents, Property Owner is not a party to, and no Seller is a party to, any
voting agreement, voting trusts, proxies or any other agreements, instruments or
understandings with respect to the voting of any of the Membership Interests, or
any agreements with respect to the transferability of any of the Membership
Interests. The Membership Interests represent all of the rights, titles and
interests Property Owner. There are no subscriptions, warrants, options,
conversion rights or other agreements of any kind to purchase or otherwise
acquire or sell any membership or other ownership interest in Property Owner.
Property Owner has no subsidiaries.
7.1.3    The Organizational Documents (i) constitute the entire agreement of
Seller with respect to Property Owner, and (ii) have not been amended or
otherwise modified except as described on Schedule 5. Seller has delivered to
Buyer prior to the date hereof true, correct and complete copies of the
financial statements for Property Owner for the fiscal year ended December 31,
2011 and for the first two quarters of the fiscal year 2012, which includes all
material assets and liabilities of Property Owner as of the date thereof,
including, without limitation all material known contingent or potential
liabilities (the “Financial Statements"). The Financial Statements (including
the notes thereto) have been prepared in accordance with sound accounting
practices, consistently applied, on a cash basis and present fairly and
accurately the financial condition of Property Owner for such periods (including
all liabilities and obligations of any kind whether accrued, absolute, fixed or
contingent) and no other material liabilities have been or will be incurred for
the period commencing April 1, 2012 and ending on the Closing Date other than as
set forth in the Financial Statements and there has been and will be no adverse
change in the financial condition as reflected therein since the dates of the
Financial Statements. It shall be a condition to Buyer's obligation to close
hereunder that Seller deliver to Buyer at Closing updated Financial Statements
certified by an officer of Seller and prepared in accordance with sound
accounting practices, consistently applied, on a cash basis, dated as of (i)
October 31, 2012 showing no material adverse change in the financial condition
as reflected therein since the dates of the Financial Statements. There are no
liabilities or other obligations or contingent liabilities or other contingent
obligations (together, “Obligations”) of Property Owner as of the Closing Date
not set forth in the Financial Statements or attached hereto as Schedule 6 (the
“Statement of Liabilities”) that arose, directly or indirectly, from any act of
Seller or any of its affiliates. There are no Obligations of Property Owner that
arose prior to the Closing Date directly or indirectly from any act or failure
to act of Seller. Between the date that the most recent of the Financial
Statements and the Closing Date, and other than as expressly approved or
consented to by Buyer, Property Owner has not and will not incur any
obligations, contingent or non-contingent liabilities or liabilities for any
charges, long-term leases or unusual forward or long-term commitments.

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7.1.4    All federal, state and other applicable tax returns required to be
filed by or with respect to Property Owner have been filed and all taxes that
are due and payable by Property Owner have been paid. No deficiencies for
federal, state or other applicable taxes have been claimed, assessed or proposed
against Property Owner by any governmental authority. There are no pending or,
to the knowledge of Seller after due inquiry, threatened audits, investigations
or claims for or relating to any liability in respect of federal, state or other
applicable taxes, and there are no matters under discussion with any
governmental authorities with respect to federal, state or other applicable
taxes that could result in an assessment of federal, state or other applicable
taxes against Property Owner. Complete copies of all federal income tax
schedules and reports relating to Property Owner and all reports received by
Seller or Property Owner from any applicable governmental authority relating to
examinations thereof have been (or will be as provided herein) delivered to
Buyer. Neither Seller, nor to its knowledge, any other party has taken any
action, or failed to take any action, that would cause Property Owner to be
treated as taxable as a corporation for income tax purposes.
7.1.5    There are no outstanding debts or liabilities between Property Owner
and Seller or affiliates of Seller. Neither Seller nor any affiliate of Seller
provides or causes to be provided to Property Owner any products, services,
equipment, facilities, or similar items, other than management services (which
will terminate at Closing), or has any agreement with Property Owner that will
survive Closing. Neither Property Owner nor any other person or entity has or
may have any claims against Seller due to matters arising under the terms of the
Organizational Documents or against Seller or Property Owner as a result of any
act or omission of Seller with respect to Property Owner or its property, assets
or business prior to the Closing (collectively, the “Residual Claims”); it being
understood and agreed that such Residual Claims shall remain an obligation of
Seller (provided however, that in no event shall Residual Claims include claims
by Buyer against Seller relating to the physical or environmental condition of
the Property except to the extent such claims arise under this Agreement as a
result of a breach of a representation or warranty by Seller, a default by
Seller or an indemnification obligation of Seller, each as and to the extent
expressly provided in this Agreement).
7.1.6    Property Owner is a limited liability company duly organized and
validly existing and in good standing under the laws of the State of Kentucky.
Seller currently has, and as of the Closing Date Property Owner will have, good
and indefeasible title to the Real Property, free and clear of all liens,
encumbrances, security interests and adverse claims of any kind or nature
whatsoever other than the Permitted Encumbrances. Property Owner has full power
and authority to carry on the business it currently conducts and, Seller
currently has, and as of the Closing Date Property Owner will have, full power
and authority to own, market, sell, lease and use the Property.

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7.1.7    All of the Personal Property is described in Exhibit “B” attached
hereto, which is a materially accurate and materially complete list of all
tangible and intangible personal property owned by Seller or Property Owner
relating to the ownership, management, operation, maintenance or repair of the
Real Property. No tangible and intangible personal property relating to the
ownership, management, operation, maintenance or repair of the Real Property is
owned by Seller or any affiliate of Seller (other than Property Owner), other
than intangible personal property owned by Seller or any affiliate of Seller
(other than Property Owner) that (i) will be transferred or otherwise conveyed
to Property Owner on the Closing Date or (ii) does not relate to the Real
Property and/or Property Owner. All of the Personal Property is located at the
Real Property. Except for the liens granted to Lenders (as hereinafter defined),
which Seller shall cause to be removed from title at or before Closing pursuant
to subsection 7.1.19 below, Seller currently has, and as of the Closing Date
Property Owner will have, good title to the Personal Property, free and clear of
all liens, encumbrances, security interests and adverse claims of any kind or
nature whatsoever.
7.1.8    All of the Leases are described in Schedule 1 attached hereto, and
there are no persons leasing, using or occupying the Real Property or any part
thereof except the tenants under the Leases. All of the Contracts are described
in Schedule 2 attached hereto, which is an accurate and complete list of all
presently effective contracts, agreements, warranties and guaranties relating to
the leasing, advertising, promotion, design, construction, ownership,
management, operation, maintenance or repair of the Real Property. All of the
Approvals are described in Schedule 3 attached hereto, which is an accurate and
complete list of all presently effective building permits, certificates of
occupancy, and other certificates, permits, licenses and approvals relating to
the design, construction, ownership, occupancy, use, management, operation,
maintenance or repair of the Real Property. Except for the liens granted to
Lenders (as hereinafter defined), which Seller shall cause to be removed from
title at or before Closing pursuant to subsection 7.1.19 below, Seller currently
has, and as of the Closing Date Property Owner will have, good title to the
Leases, the Contracts and the Approvals, free and clear of all liens,
encumbrances, security interests and adverse claims of any kind or nature
whatsoever. To Seller’s knowledge, all of the copies of the documents delivered
to Buyer pursuant to Section 6.1 hereof are accurate and complete copies of all
originals of the documents described in Section 6.1 hereof and fairly and
accurately represent the financial, physical and environmental condition of the
Membership Interests and the Property.

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7.1.9    All information provided to Buyer concerning the Leases is accurate and
complete. Except as disclosed to Buyer, to the knowledge of Seller, the Leases
are in full force and effect and the full current rent is accruing thereunder.
The Leases have not been amended or modified except as disclosed in writing to
Buyer. No monthly rent has been paid more than one (1) month in advance (except
as otherwise expressly permitted or required pursuant to the terms of the Lease)
and no security deposit or prepaid rent has been paid except as otherwise
disclosed in writing to Buyer. No tenant under the Leases is entitled to
interest on any security deposit. The tenants have accepted possession of their
respective premises under the Leases and all improvements and construction
required to be performed by the landlord under the Leases have been completed.
Except as set forth on the rent roll delivered to Buyer, to the knowledge of
Seller, there is no existing breach or default by the landlord or by any tenant
under the Leases and, to Seller’s knowledge, the tenants have no defenses,
claims or demands against the landlord, under the Leases or otherwise, which can
be offset against rents or other charges due or to become due under the Leases.
To Seller’s knowledge, no event has occurred or condition exists which, with or
without notice or the passage of time, or both, would constitute a breach or a
default by the landlord or by any tenant under the Leases. To Seller’s
knowledge, Seller has received no notice from any tenant under the Leases
claiming any breach or default by Seller under any of the Leases. To the
knowledge of Seller, no money is owed to any tenant for improvements or
otherwise under the Leases and no improvement, moving, relocation or other
payment or credit of any kind is presently owed, or will or could become due and
payable, to any tenant under the Leases. There are no leasing commissions or
other commissions, fees or compensation presently owed or which will become due
and payable with respect to any of the Leases or which could become due and
payable in the future upon the exercise of any right or option contained in any
of the Leases. Except for liens granted to Lenders, which Seller shall cause to
be removed from title at or before Closing pursuant to subsection 7.1.19 below,
neither Seller nor Property Owner has assigned, transferred, pledged or
encumbered in any manner any of the Leases or any rents or other amount payable
by any tenant thereunder. To Seller’s knowledge, the information contained in
the rent roll attached hereto as Schedule 4 is true and complete in all material
respects.
7.1.10    To Seller’s knowledge, there are no defects or deficiencies in the
design, construction, fabrication, manufacture or installation of the
improvements to the Real Property or any part thereof or any system, element or
component thereof. To Seller’s knowledge, all systems, elements and components
of the Property (including all machinery, fixtures and equipment, the roof,
foundation and structural elements, and the elevator, mechanical, electrical and
life safety systems) are in good working order and repair and sound operating
condition. To Seller’s knowledge, the Approvals have been duly and validly
issued, are in full force and effect, and are all of the certificates, permits,
licenses and approvals that are required by law to own, operate, use and occupy
the Real Property as it is presently owned, operated, used and occupied. Seller
and/or Property Owner has fully performed, satisfied and discharged all of the
obligations, requirements and conditions imposed on the Real Property by the
Approvals.

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7.1.11    Neither Seller nor Property Owner has received any written notice of
any kind from any insurance broker, agent or underwriter that any noninsurable
condition exists in, on or about the Real Property or any part thereof. Neither
Seller nor Property Owner has received any written notice that the Real Property
is in violation of any applicable building, earthquake, zoning, land use,
environmental, antipollution, health, fire, safety, access and accommodations
for the physically handicapped, subdivision, energy and resource conservation
and similar laws, statutes, rules, regulations and ordinances or any covenants,
conditions and restrictions applicable to the Real Property.
7.1.12    To Seller’s knowledge, except with respect to the potentially elevated
levels of radon identified in the draft Phase I Environmental Site Assessment
prepared by GRS Group for Buyer's lender on or about the date hereof (the
"Potential Radon"), there are no Hazardous Substances present in, on or under
the Real Property or any nearby real property which could migrate to the Real
Property, and to Seller’s knowledge, there is no present Release or threatened
Release of any Hazardous Substances in, on or under the Real Property in
violation of applicable laws. Neither Seller nor Property Owner has ever used
the Real Property or any part thereof, or has ever permitted any person to use
the Real Property or any part thereof, for the production, processing,
manufacture, generation, treatment, handling, storage or disposal of Hazardous
Substances in violation of applicable Environmental Laws. To Seller’s knowledge,
no underground storage tanks of any kind are located at the Real Property. To
Seller’s knowledge, except with respect to the Potential Radon, the Real
Property and every part thereof, and all operations and activities therein and
thereon and the use and occupancy thereof, comply with all applicable
Environmental Laws, and neither Seller, Property Owner, nor any person using or
occupying the Real Property or any part thereof is violating any Environmental
Laws. To Seller’s knowledge, Seller currently has, and as of the Closing Date
Property Owner will have, all permits, licenses and approvals (which are
included in the Approvals) required by all applicable Environmental Laws for the
use and occupancy of, and all operations and activities in, the Real Property.
To Seller’s knowledge, Seller currently is, and as of the Closing Date Property
Owner will be, in full compliance with all such permits, licenses and approvals,
and to Seller’s knowledge, all such permits, licenses and approvals are in full
force and effect. No claim, demand, action or proceeding of any kind relating to
any past or present Release or threatened Release of any Hazardous Substances
in, on or under the Real Property or any past or present violation of any
Environmental Laws at the Real Property has been made or commenced, or is
pending, or to Seller’s knowledge is being threatened or contemplated by any
person. Seller shall not be deemed to have breached the foregoing
representations and warranties with respect to the safe and lawful use and
storage by Seller, Property Owner, any tenant or any other person 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 Property, and (iii) petroleum
products used in the operation and maintenance of motor vehicles from time to
time located on the Property’s parking areas, so long as all of the foregoing
are used, stored, handled, transported and disposed of in compliance with
Environmental Laws (collectively, the "Lawful Substances").

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7.1.13    There is no litigation, arbitration or other legal or administrative
suit, action, proceeding or investigation of any kind pending (including,
without limitation, involving the federal Department of Housing and Urban
Development) or to Seller’s knowledge threatened or being contemplated against
or involving Seller or Property Owner relating to the Membership Interests, the
Property or any part thereof and, to Seller’s knowledge, there is no valid basis
for any such litigation, arbitration or other legal or administrative suit,
action, proceeding or investigation (including, without limitation, involving
the federal Department of Housing and Urban Development). To Seller’s knowledge,
there is no general plan, land use or zoning action or proceeding of any kind,
or general or special assessment action or proceeding of any kind, or
condemnation or eminent domain action or proceeding of any kind pending or
threatened or being contemplated with respect to the Membership Interests, the
Real Property or any part thereof. There is no legal or administrative action or
proceeding pending to contest or appeal the amount of real property taxes or
assessments levied against the Real Property or any part thereof or the assessed
value of the Real Property or any part thereof for real property tax purposes.
To Seller’s knowledge, no supplemental real property taxes have been or will be
levied against or assessed with respect to the Real Property or any part thereof
based on any change in ownership or new construction or other event or
occurrence relating to the Real Property before the date of this Agreement,
except any such supplemental real property taxes as have been paid in full and
discharged.
7.1.14    To Seller’s knowledge, all water, sewer, electric, telephone and
drainage facilities and all other utilities required by law or reasonably
necessary or proper and usual for the full operation, use and occupancy of the
Real Property are installed to the boundary lines of the Real Property, are
connected with valid permits, if required, and are adequate to service the Real
Property and to allow full compliance with all applicable laws, and the cost of
installation and connection of all such utilities to the Property has been fully
paid.
7.1.15    Seller is not “foreign person” as defined in Section 1445 of the
Internal Revenue Code of 1986, as amended, and the Income Tax Regulations
thereunder.
7.1.16    No withholding of tax or reporting will be required with respect to
the sale of the Membership Interests by Seller.
7.1.17    Neither Seller nor Property Owner has made a general assignment for
the benefit of its creditors, or admitted in writing its inability to pay its
debts as they become due, nor has Seller or Property Owner filed, nor does it
contemplate the filing of, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or any other proceeding for the relief of
debts in general, nor has any such proceeding been instituted by or against
Seller or Property Owner.
7.1.18    Except for ARA/Midwest, Seller has not dealt with any investment
adviser, real estate broker or finder, or incurred any liability for any
commission or fee to any investment adviser, real estate broker or finder, in
connection with the sale of the Membership Interests to Buyer or this Agreement.

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7.1.19    Any loans with lenders with liens affecting the Membership Interests
and/or the Property, including, without limitation, BB&T (collectively,
“Lenders”), are currently in good standing and not in default, and Seller shall
cause all lenders, including, without limitation, Lenders, to reconvey or
release such liens at the Close of Escrow.
7.1.20    The transaction contemplated by this Agreement (and any underlying
obligations contemplated by this Agreement) does not and shall not constitute
a non-exempt prohibited transaction under the Employee Retirement Income
Security Act of 1974 (“ERISA”) or a comparable violation of state law.
7.1.21    Neither Seller nor Property Owner is any of the following: (i) a
person or entity that is listed in the annex to, or is otherwise subject to the
provisions of, Executive Order No. 13224 on Terrorist Financing (effective
September 24, 2001) (herein called the “Executive Order”); (ii) a person or
entity owned or controlled by, or acting for or on behalf of any person or
entity that is listed in the Annex to, or is otherwise subject to the provisions
of, the Executive Order; (iii) a person or entity that is named as a
“specifically designated national” or “blocked person” on the most current list
published by the U.S. Treasury Department’s Office of Foreign Assets Control
(herein called “OFAC”) at its official website,
http://www.treas.gov/offices/enforcement/ofac; (iv) a person or entity that is
otherwise the target of any economic sanctions program currently administered by
OFAC; or (v) a person or entity that is affiliated with any person or entity
identified in the foregoing clauses (i), (ii), (iii), or (iv).
7.1.22    Property Owner owns no real property or personal property except, as
of the Closing Date, the Property. As of the Closing Date, Seller will own no
real or personal property located on or used in connection with the Property.
7.1.23    To Seller’s knowledge, all of the Seller Deliveries provided to Buyer
are true and complete copies of such documents. To Seller’s knowledge, Seller
has used commercially reasonable efforts to disclose to Buyer, in writing (which
disclosure may be by delivery of the Seller Deliveries), all material
information, knowledge and findings relating to the Membership Interests and the
Property and its operations in Seller’s possession or control.
7.1.24    All employees of Seller or Property Owner or any property manager
employed at or in connection with the Property have been paid their respective
salaries and any fringe benefits (including vacation and sick-leave) accruing
through the date hereof and will be paid in full as of the Closing Date.
7.2    Buyer’s Representations and Warranties. Buyer represents and warrants to
Seller as follows:
7.2.3    Buyer is a corporation, duly formed, validly existing, and in good
standing under the laws of the State of California.

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7.2.4    Buyer has all requisite power and authority to execute and deliver this
Agreement and to carry out its obligations hereunder and the transactions
contemplated hereby. This Agreement has been, and the documents contemplated
hereby will be, duly executed and delivered by Buyer and constitute its legal,
valid, and binding obligation enforceable against it in accordance with its
terms.
7.2.5    Except for ARA/Midwest, Buyer has not dealt with any investment
adviser, real estate broker or finder, or incurred any liability for any
commission or fee to any investment adviser, real estate broker or finder, in
connection with the purchase of the Membership Interests or this Agreement.
8.    COVENANTS.
8.1    Seller. Seller covenants and agrees with Buyer as follows:
8.1.6    Between the date of this Agreement and the Closing Date, neither Seller
nor Property Owner shall execute any additional lease affecting the Real
Property or amend, modify, renew, extend or terminate any of the Leases, the
Contracts or the Approvals in any respect without the prior approval of Buyer,
which approval may not be unreasonably withheld by Buyer; provided, however,
that any Leases which are either executed or renewed on a month-to-month basis
or which are consistent with the current leasing practices of Seller, including,
without limitation, current rental rates, shall be deemed to be automatically
approved by Buyer, and provided further that any Contracts that are not
terminable upon no more than thirty (30) days notice may be disapproved by Buyer
in its sole and absolute discretion. Further, Buyer shall be deemed to have
approved a proposed Lease if Buyer has not made an objection to such contract
within two (2) Business Days of a receipt of a written request for approval.
Further, Seller, in emergency situations or in situations that are critical to
the operation of the Property, may enter into Contracts for goods and services
without the approval of Buyer, provided that such Contracts must be terminable
upon no more than thirty (30) days notice without payment of any penalty or fee.
Between the date of this Agreement and the Closing Date, neither Seller nor
Property Owner shall consent to any assignment or sublease requested by any
tenant under any of the Leases without the prior approval of Buyer, which
approval shall not be unreasonably withheld or delayed. Between the date of this
Agreement and the Closing Date, Seller shall manage, operate, maintain and
repair the Real Property and the Personal Property in the ordinary course of
business in accordance with Seller's existing practices (including, without
limitation, maintenance of substantially the same advertising and marketing
programs for the Real Property in effect as of the date of this Agreement),
comply with the Approvals and all covenants, conditions, restrictions, laws,
statutes, rules, regulations and ordinances applicable to the Real Property or
the Personal Property, keep the Leases, the Contracts and the Approvals in
force, immediately give Buyer copies of all notices received by Seller and/or
Property Owner asserting any breach or default under the Leases or the Contracts
or any violation of the Approvals or any covenants, conditions, restrictions,
laws, statutes, rules, regulations or ordinances applicable to the Membership
Interests, the Real Property or the Personal Property, and perform when due all
of Seller's obligations under the Leases, the Contracts and the Approvals in
accordance with the Leases, the Contracts and the Approvals and all applicable
laws. Neither Seller nor Property Owner shall (i) create or agree to any
easements, liens, mortgages, encumbrances or

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other interests that would affect the Membership Interests or the Property or
Seller’s ability to comply with this Agreement; (ii) initiate or consent to,
approve or otherwise take any action with respect to zoning or any other
governmental rules or regulations presently applicable to all or any part of the
Real Property; (iii) fail to pay when due and payable all taxes and other public
charges assessed against the Membership Interests, the Real Property, Property
Owner or Seller; (iv) fail to keep current and free from monetary or material
non-monetary default any and all secured financing against the Membership
Interests or the Property; or (v) fail to pay in a timely fashion all proper
bills for labor or services for work performed for or on behalf of Seller or
Property Owner with respect to the Membership Interests or the Property. Between
the date of this Agreement and the Closing Date, Seller and/or Property Owner
shall keep in force property insurance covering all buildings, structures,
improvements, machinery, fixtures and equipment included in the Real Property
insuring against all risks of physical loss or damage, subject to standard
exclusions, in an amount equal to the actual replacement cost (without deduction
for depreciation) of such buildings, structures, improvements, machinery,
fixtures and equipment.
8.1.7    Between the date of this Agreement and the Closing Date, neither Seller
nor Property Owner shall use, produce, process, manufacture, generate, treat,
handle, store or dispose of any Hazardous Substances in violation of applicable
laws in, on or under the Real Property, or use the Real Property for any such
purposes, or, except for the Potential Radon, Release any Hazardous Substances
in violation of applicable laws, into any air, soil, surface water or
groundwater comprising the Real Property, or permit any person using or
occupying the Real Property or any part thereof to do any of the foregoing.
Between the date of this Agreement and the Closing Date, Seller and Property
Owner shall comply, and shall cause all persons using or occupying the Real
Property or any part thereof to comply, with all Environmental Laws applicable
to the Real Property, or the use or occupancy thereof, or any operations or
activities therein or thereon. Between the date of this Agreement and the
Closing Date, Seller and/or Property Owner shall duly obtain all permits,
licenses and approvals required by all applicable Environmental Laws for the use
and occupancy of, and all operations and activities in, the Real Property,
comply fully with all such permits, licenses and approvals, and keep all such
permits, licenses and approvals in full force and effect. Immediately after
Seller or Property Owner obtains any information indicating that any Hazardous
Substances other than the Potential Radon may be present or any Release or
threatened Release of Hazardous Substances may have occurred in, on or under the
Real Property (or any nearby real property which could migrate to the Real
Property) or that any violation of any Environmental Laws may have occurred at
the Real Property, Seller shall give written notice thereof to Buyer with a
reasonably detailed description of the event, occurrence or condition in
question. Seller shall immediately furnish to Buyer copies of all written
communications received by Seller or Property Owner from any person (including
notices, complaints, claims or citations that any Release or threatened Release
of any Hazardous Substances or any violation of any Environmental Laws has
actually or allegedly occurred) or given by Seller or Property Owner to any
person concerning any past or present Release or threatened Release of any
Hazardous Substances in, on or under the Real Property (or any nearby real
property which could migrate to the Real Property) or any past or present
violation of any Environmental Laws at the Real Property. Seller shall not be
deemed to have breached the foregoing covenants with respect to Lawful
Substances.

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8.1.8    Seller shall use commercially reasonable efforts, in good faith and
with diligence, to cause all of the representations and warranties made by
Seller in Section 7.1 hereof to be true and correct on and as of the Closing
Date.
8.1.9    Seller shall promptly notify Buyer in writing of any litigation,
arbitration, condemnation or administrative hearing before any court or
governmental agency concerning Seller, Property Owner, the Membership Interests
or the Property which is instituted after the date hereof, other than eviction
or unlawful detainer actions that will be completed prior to Closing.
8.1.10    Seller shall indemnify and defend Buyer against and hold Buyer
harmless from all claims, demands, liabilities, losses, damages, costs and
expenses, including reasonable attorneys’ fees and disbursements, (i) that may
be suffered or incurred by Buyer if any representation or warranty made by
Seller in Section 7.1 hereof was untrue or incorrect in any material respect
when made or on the Closing Date, or that may be caused by any material breach
by Seller of any such representation or warranty, (ii) that may be suffered or
incurred by Buyer or Property Owner as a result of (a) fraud or misappropriation
or misapplication of funds of Property Owner committed by Seller or any of its
affiliates, (b) entering into, terminating or otherwise modifying any material
contract to which Property Owner is a party by Seller or any of its affiliates
in violation of the Organizational Documents, (c) theft, embezzlement,
intentional destruction or committing waste to the Property by Seller or any of
its affiliates, (d) gross negligence of Seller or any of its affiliates, (e) any
other intentional misconduct, breach of a fiduciary duty or illegal acts not set
forth above, or (f) any Residual Claims, and (iii) arising from or based on any
condition, event or circumstance relating to the Membership Interests that
existed or occurred before the Closing Date, or any personal injury occurring
in, on or about the Real Property before the Closing Date. Any claim of Buyer in
connection with said indemnities shall be made within nine (9) months after the
Closing or shall automatically be null, void and of no force or effect
whatsoever, and Buyer’s remedies for any such claim shall be limited to recovery
of damages not to exceed ONE MILLION AND 00/100 DOLLARS ($1,000,000.00);
provided, however, that there shall be no such monetary limitation on Buyer’s
damages in connection with any third party personal injury claims or claims by
made by tenants for breach of a Lease; provided, however, that said ONE MILLION
DOLLAR cap shall be reduced to Buyer's actual third-party costs and damages (not
to exceed $500,000 in the aggregate) with respect to a loss under subsection (i)
hereof if such failure or breach by Seller does not constitute an Intentional
Seller Default.
8.1.11    Between the date of this Agreement and the Closing Date, except as
required under Section 8.1.10, neither Seller nor Property Owner shall in any
manner sell, convey, assign, transfer, encumber or otherwise dispose of the
Membership Interests, the Property or any part thereof or interest therein.
8.1.12    Between the date of this Agreement and the Closing Date, and other
than as expressly approved or consented to by Buyer, Property Owner will not
incur any obligations, or liabilities (contingent or non-contingent) for any
long-term leases or unusual forward or long-term commitments.

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8.1.13    Seller shall pay all commissions, fees and expenses due to
ARA/Midwest, in respect of the sale of the Membership Interests to Buyer or this
Agreement. Seller hereby agrees to indemnify and hold Buyer harmless from and
against any and all claims for brokerage or finder’s fees or other similar
commissions or compensation made by any and all other brokers or finders
claiming to have dealt with Seller in connection with this Agreement or the
consummation of the transaction contemplated hereby. The indemnification
obligations of Seller set forth in this Section 8.1.6 shall survive the Closing
or the termination of this Agreement for any reason for a period of nine (9)
months.
8.1.14    Seller shall not dissolve its existing entity and shall remain validly
existing and in good standing under the laws of the State of Kentucky during the
period commencing on the date of this Agreement and ending on the date that is
nine (9) months after the Closing Date; provided, however, that if Buyer gives
Seller written notice of a claim under this Agreement on or before the
expiration of such period, such covenant shall extend until the later to occur
of (a) the date that is eighteen (18) months after the Closing Date, or (b) the
date such claim has been satisfactorily resolved as determined by the mutual
agreement of Seller and Buyer or by a court of competent jurisdiction.
8.1.15    On the Closing Date, but immediately prior to Closing, Seller shall
convey, assign, or otherwise transfer all of the Property to Property Owner.
8.2    Buyer. Buyer covenants and agrees with Seller as follows:
8.2.1    All representations and warranties made by Buyer in Section 7.2 hereof
shall survive the Closing for a period of nine (9) months. Buyer shall use
commercially reasonable efforts, in good faith and with diligence, to cause all
of the representations and warranties made by Buyer in Section 7.2 hereof to be
true and correct on and as of the Closing Date. Buyer shall indemnify and defend
Seller against and hold Seller harmless from all claims, demands, liabilities,
losses, damages, costs and expenses, including reasonable attorneys’ fees and
disbursements, that may be suffered or incurred by Seller if any representation
or warranty made by Buyer in Section 7.2 hereof was untrue or incorrect in any
material respect when made or that may be caused by any breach by Buyer of any
such representation or warranty.
8.2.2    Subject to Seller’s representations, warranties and covenants set forth
in Section 7.1 above, Buyer shall indemnify and defend Seller against and hold
Seller harmless from all claims, demands, liabilities, losses, damages, costs
and expenses, including reasonable attorneys’ fees and disbursements, arising
from or based on any failure by Buyer to perform all obligations of Buyer in
accordance with the Leases or the Contracts arising or accruing on or after the
Closing Date and during Buyer’s ownership of the Membership Interests or any
breach, default or violation by Buyer (or any event by Buyer or condition which,
after notice or the passage of time, or both, would constitute a breach, default
or violation by Buyer) under the Leases or the Contracts that occurs on or after
the Closing Date and during Buyer’s ownership of the Membership Interests,
except to the extent that such claims, demands, liabilities, losses, damages,
costs and expenses arise out of or relate to any Residual Claim.

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9.    ADJUSTMENTS AND PRORATIONS.
9.1    Generally. All taxes (including, without limitation, real estate taxes
and personal property taxes), collected rents, laundry income, parking income,
furniture rental, charges for utilities (including water, sewer, and fuel oil)
and for utility services, maintenance services, maintenance and service
contracts, all operating costs and expenses, and all other income, costs, and
charges of every kind which in any manner relate to the operation of the
Property (but not including insurance premiums) shall be prorated as of 11:59 pm
the day prior to the Date of Closing. If the amount of said taxes, assessments,
rents, income, costs, charges, etc. is not known at such time, they shall be
apportioned on the basis of the amounts for the preceding year, with a
reapportionment as soon as the new amounts can be ascertained. Any deposits on
utilities paid by Seller shall be returned to Seller. On the Date of Closing,
Seller shall deliver to Buyer all inventories of supplies on hand at the
Property owned by Seller or Property Owner, if any, at no additional cost to
Buyer. All cash that Property Owner has on-hand as of 11:59 pm the day prior to
the Closing Date will be paid to Seller at the Closing. Seller’s insurance
policies will not be assigned to Buyer; it being understood that Seller will
have no responsibility for maintaining any insurance policies with respect to
the Property and Property Owner for any period from and after the Closing.
9.2    Rental Income. Rental income from the Property shall be prorated as of
11:59 pm the day prior to the Closing Date. Non-delinquent rents shall be
prorated as of 11:59 pm the day prior to the Closing Date. Rents delinquent as
of such time, but collected later, shall be prorated as of 11:59 pm the day
prior to the Closing Date when collected. Rents collected after the Closing Date
from tenants whose rental was delinquent at the Closing Date shall be deemed to
apply first to the current rental due at the time of payment and second to
rentals which were delinquent at the Closing Date. Rents collected after the
Closing Date to which Seller is entitled shall be promptly paid to Seller. For a
period of sixty (60) days after the Closing Date, Buyer shall use reasonable
efforts to collect all rents which are delinquent as of the Closing Date with no
obligation to incur any expenses or commence litigation to collect such rents.
Commencing as of sixty one (61) days after the Closing Date, Seller may use
reasonable efforts, including litigation, to collect any rents delinquent as of
the Closing Date which are still uncollected; provided, however, in exercising
its remedies against tenants as outlined in this Section, Seller shall not evict
any tenant of the Property or otherwise unreasonably interfere with Buyer’s or
Property Owner's operation of the Property. With respect to security deposits,
if any, made by tenants at the Property, Buyer shall receive credit therefor at
Closing. Any leasing commissions with respect to the Leases shall be the sole
responsibility of Seller, and shall be paid or discharged fully at or prior to
Closing.
9.3    Proration Period. If any of the items subject to proration hereunder
cannot be prorated because the information necessary to compute such proration
is unavailable, or if any errors or omissions in computing prorations at the
Close of Escrow are discovered subsequent to the Close of Escrow, then such item
shall be reapportioned and such errors and omissions corrected as soon as
practicable after the Close of Escrow and the proper party reimbursed.

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9.4    Rent Ready. Not more than forty-eight (48) hours prior to the Closing
Date, a representative of Buyer and a representative of Seller shall conduct an
onsite walk-through of the then unoccupied rental units on the Property to
determine whether any of such unoccupied rental units are in “rent ready”
condition. With respect to any rental unit which is vacated on or before five
(5) days prior to Closing, Seller shall, at Seller’s option, either (i) make
such unoccupied rental unit into a “rent ready” condition, or (ii) provide Buyer
with a credit against the Purchase Price due at Closing in the amount of One
Thousand Five Hundred Dollars ($1,500.00) per such unoccupied rental unit. With
respect to any rental unit that is vacated later than five (5) days prior to
Closing, Seller shall have no responsibility or liability to put such unoccupied
rental unit into a “rent ready” condition, and Seller shall not have to
compensate Buyer if such unit is not “rent ready” as of the Closing Date. “Rent
ready” condition shall mean the Seller's current practice of placing units in
“rent ready” condition.
10.    CLOSING DOCUMENTS.
10.1    Seller’s Deliveries. Conditioned upon performance by Buyer hereunder,
Seller shall execute and/or deliver, as applicable, to Escrow Holder or Buyer
prior to Closing the following documents and other deliveries:
10.1.1    Assignment. An assignment and assumption of Membership Interests
executed by Seller and Buyer in the form of attached Exhibit “D” (the
“Assignment”);
10.1.2    Assignment and Assumption of Leases, Contracts and Approvals. An
assignment of all of Seller’s right, title and interest in and to the Leases,
Contracts and Approvals to Property Owner in the form of attached Exhibit “E”
(“General Assignment”);
10.1.3    Bill of Sale. A bill of sale in the form of attached Exhibit “F”,
assigning and transferring to Property Owner all of the right, title, and
interest of Seller in and to the Personal Property;
10.1.4    Non-Foreign Certificates. Certifications that Seller is not a
non-resident aliens (a foreign corporation, partnership, trust, or estate as
defined in the Internal Revenue Code and Treasury Regulations promulgated
thereunder), in favor of Property Owner and Buyer, each in the form of attached
Exhibit “G”; and
10.1.5    Tenant Notices. Notices to the tenants under all Leases in the form of
attached Exhibit “H”.
10.1.6    Deed. A warranty deed in favor of Property Owner with respect to the
Real Property, executed by Seller in the form of attached Exhibit “I” (the
“Deed”), subject only to the Permitted Exceptions;

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10.1.7    Affidavit(s). An affidavit(s) as to construction, debts, liens and
parties in possession in the form customarily used by Escrow Holder, certified
to Property Owner, Buyer and Escrow Holder, identifying no construction, debts,
liens or parties in possession (other than residential tenants disclosed to
Buyer) that may affect the Membership Interests and/or the Property after the
Closing Date.
10.1.8    Possession. Sole possession of the Membership Interests and the
Property, subject to rights of tenants in possession as tenants only under the
Leases, and of all books and records of Property Owner and any other property
and assets of Property Owner in the possession or under the control of Seller.
10.1.9    Accounts. If requested by Buyer, notices closing all existing bank
accounts.
10.1.10    Application to Change EIN/754 Election. A completed application for
change of the Employer Identification Number of Property Owner and, if requested
by Buyer, any necessary tax elections under Section 754 of the Internal Revenue
Code.
10.1.11    Financial Statements. Financial statements for the period between
January 1, 2012 and the most recent month ending at least 30 days prior to
Closing, prepared in a manner substantially consistent with the preparation of
the Financial Statements.
10.1.12    Waiver of Rights Under Organizational Documents. If requested by
Buyer in writing, an executed waiver by Seller of any options, rights of offer,
rights of first refusal or any other right of any kind to purchase or otherwise
acquire all or any portion of the Membership Interests that is contained with
the Organizational Documents.
10.1.13    Updated Rent Roll. A current rent roll for the Property in the form
of the rent roll attached as Schedule 4.
10.2    Buyer’s Deliveries. Conditioned upon performance by Seller hereunder,
Buyer shall execute and deliver to Escrow Holder prior to Closing the
Assignment.
10.3    Other Closing Documents. Each party shall deliver to the other party or
Escrow Holder such duly executed and acknowledged or verified certificates,
affidavits, and other usual and customary closing documents respecting the power
and authority to perform the obligations hereunder and as to the due
authorization thereof by the appropriate corporate, partnership, or other
representatives acting for it, as counsel for the other party or Escrow Holder
may reasonably request, and such conveyancing or transfer tax forms or returns,
if any, as are required to be delivered by Seller or Buyer under applicable
state or local law in connection with the conveyance of the Membership
Interests. Each party shall deliver any additional documents that the other
party or Escrow Holder may reasonably require for the proper consummation of the
transaction contemplated by this Agreement; provided, however, no such
additional document shall expand any obligation, covenant, representation or
warranty of such party or result in any new or additional obligation, covenant,
representation or warranty of such party under this Agreement beyond those
expressly set forth in this Agreement.

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10.4    Closing Documents. All documents to be delivered to Escrow Holder
pursuant to this Section 10 shall hereinafter be referred to as “Closing
Documents”.
11.    COSTS. Seller shall pay all real estate transfer taxes and documentary
stamps and the costs of any endorsements to the Title Policy (as hereinafter
defined) to the extent that such endorsements are necessary to cure any Title
Objections that Seller agreed or was required to cure, and the cost of
preparation of Seller’s Closing Documents. Buyer shall pay the cost of the Title
Commitment and any updates thereto, the cost of a standard ALTA Owner’s Policy
of Title Insurance (the “Title Policy”, the cost for any extended ALTA title
insurance coverage, if desired, the cost of any endorsements to the Title Policy
(if requested by Buyer other than those required to be paid by Seller), the cost
of preparation of Buyer’s Closing Documents, and the cost of any updated survey,
if desired. Seller and Buyer shall each pay one-half (1/2) of (i) Escrow
Holder’s escrow fee in an amount not to exceed $6,000.00 (excluding charges
assessed by Escrow Holder for special services, which shall be paid by the party
requesting or using such special services), (ii) recording fees for the Deed,
and (iii) other closing costs. Each party shall pay its own attorney’s fees.
12.    CASUALTY OR CONDEMNATION. During the period from the Opening of Escrow
through Closing, all risk of loss from fire or other casualty or condemnation
shall be borne by Seller. If, before the Closing Date, (i) the improvements on
the Real Property are materially damaged by any casualty, as reasonably
determined by Buyer, or (ii) proceedings are commenced for the taking by
exercise of the power of eminent domain of all or a material part of the
Property, as reasonably determined by Buyer, Buyer shall have the right, by
giving notice to Seller within twenty (20) days after Seller gives written
notice of the casualty or condemnation to Buyer, to terminate this Agreement, in
which event this Agreement shall automatically terminate and the Deposit shall
be returned to Buyer. If, before the Closing Date, (a) the improvements on the
Real Property are damaged by any casualty, but not in a material manner, (b)
proceedings are commenced for the taking by exercise of the power of eminent
domain of less than such a material part of the Property, or (c) Buyer has the
right to terminate this Agreement pursuant to the preceding sentence but Buyer
does not exercise such right, then this Agreement shall remain in full force and
effect and, on the Closing Date, one of the following shall occur, as
applicable: (1) the full repair and restoration cost, as mutually determined by
Buyer and Seller, shall be a credit to Buyer against the total Purchase Price
for the Membership Interests, or (2) the condemnation award (or, if not
theretofore received, the right to receive such award) payable on account of the
taking shall be transferred to Buyer. Seller shall give notice to Buyer
immediately after the occurrence of any damage to the improvements on the Real
Property by any casualty or the commencement of any eminent domain proceedings.
Buyer shall have a period of twenty (20) days after Seller has given the notice
to Buyer required by this Section 12 to make the determination as to whether to
terminate this Agreement. If necessary, the Closing Date shall be postponed
until Seller has given the notice to Buyer required by this Section 12 and the
period of twenty (20) days described in this Section 12 has expired.
13.    ATTORNEYS’ FEES. In any action to enforce or interpret the provisions of
this Agreement, the prevailing party shall be entitled to an award of its
attorneys’ fees and costs.

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14.    ASSIGNMENT. Buyer shall have the right, by giving notice to Seller before
the Closing Date, to assign this Agreement or to have Seller convey, assign and
transfer the Membership Interests at the Closing in accordance with this
Agreement to any person or entity designated by Buyer in such notice.
15.    WAIVER. No waiver of any breach of any agreement or provision contained
herein shall be deemed a waiver of any preceding or succeeding breach of any
other agreement or provision herein contained. No extension of time for the
performance of any obligation or act shall be deemed an extension of time for
the performance of any other obligation or act.
16.    GOVERNING LAW. This Agreement shall be construed under the laws of the
State of Kentucky (without regard to the principles thereof governing conflicts
of laws).

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17.    NOTICES. All notices required or permitted to be given hereunder shall be
in writing and sent by overnight delivery service (such as Federal Express), in
which case notice shall be deemed given on the day after the date sent, or by
personal delivery, in which case notice shall be deemed given on the date
received, or by certified mail, in which case notice shall be deemed given three
(3) days after the date sent, or by electronic mail (with copy by overnight
delivery service), in which case notice shall be deemed given on the date sent,
to the appropriate address set forth below or at such other place or places as
either Buyer or Seller may, from time to time, respectively, designate in a
written notice given to the other in the manner described above.
To Seller:

With Copy To:

Ball Homes
3609 Walden Drive 
Lexington, KY  40517
Attn: D. Ray Ball, Jr.
E-mail: rball@ballhomes.com Telephone No.: 859-268-1192

Ball Homes
3609 Walden Drive 
Lexington, KY  40517
Attn: Jonathan Norris, General Counsel
E-mail: jrnorris@ballhomes.com            Telephone No.: 859-514-3427 

To Buyer:

Steadfast Asset Holdings, Inc.
18100 Von Karman, Suite 500
Irvine, California 92612
Attn: Ana Marie del Rio, Esq.
E-mail: adelrio@SteadfastCompanies.com
Telephone No.: (949) 852-0700

With Copy To:
Katten Muchin Rosenman LLP
2900 K Street, NW
North Tower – Suite 200
Washington, DC 20007
Attn: Virginia A. Davis, Esq.
E-mail: virginia.davis@kattenlaw.com Telephone No.: (202) 625-3602

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18.    ENTIRE AGREEMENT. This instrument, executed in duplicate, sets forth the
entire agreement between the parties and may not be canceled, modified, or
amended except by a written instrument executed by both Seller and Buyer.
19.    COUNTERPARTS; COPIES. This Agreement may be executed and delivered in any
number of counterparts, each of which so executed and delivered shall be deemed
to be an original and all of which shall constitute one and the same instrument.
Electronic, photocopy and facsimile copies of signatures may be used in place
and stead of original signatures with the same force and effect as originals.
20.    AUTHORITY. The individual(s) executing this Agreement on behalf of each
party hereto hereby represent and warrant that he/she has the capacity, with
full power and authority, to bind such party to the terms and provisions of this
Agreement.
21.    RECORD ACCESS AND RETENTION.
21.1. Seller shall provide to Buyer (at Buyer’s expense) copies of, or shall
provide Buyer reasonable access to, such factual information as may be
reasonably requested by Buyer, and in the possession or control of Seller,
Property Owner or its property manager or accountants, to enable Buyer’s auditor
to conduct an audit, in accordance with Rule 3-14 of Securities and Exchange
Commission Regulation S-X, of the income statements of the Property for the year
to date of the year in which Closing occurs plus one (1) prior calendar year
(provided, however, such audit shall not include an audit of asset management
fees internally allocated by Seller (as opposed to paid to a thirty party) or
interest expenses attributable to the Seller). Buyer shall be responsible for
all out-of-pocket costs associated with this audit. Seller shall reasonably
cooperate (at no cost to Seller) with Buyer’s auditor in the conduct of such
audit. In addition, Seller agrees to provide to Buyer or any affiliate of Buyer,
if requested by such auditor, historical financial statements for the Membership
Interests and/or the Property, including (without limitation) income and balance
sheet data for the Property, whether required before or after Closing. Without
limiting the foregoing, (i) Buyer or its designated independent or other auditor
may audit Property Owner's operating statements of the Property or Seller's
statements of the Membership Interests, at Buyer’s expense, and Seller shall
provide such documentation as Buyer or its auditor may reasonably request in
order to complete such audit, and (ii) Seller shall furnish to Buyer such
financial and other information as may be reasonably required by Buyer or any
affiliate of Buyer to make any required filings with the Securities and Exchange
Commission or other governmental authority. Seller’s obligation to maintain its
records for use under this Section 21.1 shall be an on-going condition to
Buyer’s obligation to close Escrow, and Seller shall maintain its records for
use under this Section 21.1 for a period of not less than one (1) year after the
Closing Date. The provisions of this Section shall survive Closing.

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21.2    As requested from time to time by Buyer in writing during the Due
Diligence Period, in addition to the items delivered pursuant to Section 6.1,
Seller promptly shall provide to Buyer access to or copies of all such requested
documents and information in the possession of Seller, Property Owner or its
property manager(s) respecting the Membership Interests and/or the physical
condition, operation, leasing, management, maintenance or repair of the Real
Property, and the right at the cost and expense of Buyer to inspect the same and
make copies thereof, it being acknowledged that such rights of access and
inspection and right to receive or make copies is given without any express or
implied representation or warranty made by Seller in any respect except as
otherwise provided in Section 7 of this Agreement.
22.    CONTRACT CONSIDERATION. The parties have bargained for and expressly
agree that the rights and obligations of each party contained in this Agreement,
including, without limitation, Buyer’s obligation to deliver the Initial Deposit
to Escrow Holder, constitute sufficient consideration for the other party’s
execution, delivery and obligations under this Agreement, including without
limitation, Buyer’s exclusive right to inspect and purchase the Membership
Interests pursuant to this Agreement and all contingencies and conditions of
Closing for the benefit of Buyer set forth in this Agreement.
23.    JURY TRIAL WAIVER. EACH OF THE PARTIES HEREBY WAIVES TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO WHICH SELLER AND/OR BUYER MAY BE PARTIES ARISING OUT OF,
IN CONNECTION WITH, OR IN ANY WAY PERTAINING TO, THIS AGREEMENT. THIS WAIVER IS
KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY THE PARTIES AND EACH HEREBY
REPRESENTS AND WARRANTS TO THE OTHER THAT NO REPRESENTATIONS OF FACT OR OPINION
HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN
ANY WAY MODIFY OR NULLIFY ITS EFFECT. EACH PARTY FURTHER REPRESENTS AND WARRANTS
TO THE OTHER THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND
THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OF ITS OWN FREE WILL,
AND HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. THE PROVISIONS
OF THIS SECTION SHALL SURVIVE CLOSING OR THE TERMINATION OF THIS AGREEMENT.
24.    COUNSEL. EACH PARTY HERETO WARRANTS AND REPRESENTS THAT EACH PARTY HAS
BEEN AFFORDED THE OPPORTUNITY TO BE REPRESENTED BY COUNSEL OF ITS CHOICE IN
CONNECTION WITH THE EXECUTION OF THIS AGREEMENT AND HAS HAD AMPLE OPPORTUNITY TO
READ, REVIEW, AND UNDERSTAND THE PROVISIONS OF THIS AGREEMENT.
25.    EQUAL PARTICIPATION. SELLER AND BUYER HAVE PARTICIPATED EQUALLY IN THE
PREPARATION OF THIS AGREEMENT, AND, THEREFORE, THIS AGREEMENT AND EACH PROVISION
THEREOF SHALL NOT BE CONSTRUED IN FAVOR OF OR AGAINST ANY PARTY TO THIS
AGREEMENT BY REASON OF ONE PARTY’S BEING DEEMED TO PREPARED THIS AGREEMENT OR
IMPOSED SUCH PROVISION.

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26.    TAX-FREE EXCHANGE.  Should Seller intend to complete a like-kind exchange
in accordance with Section 1031 of the Internal Revenue Code (“like-kind
exchange”), Seller may enter into a like-kind exchange agreement with a third
party exchange accommodation titleholder or qualified intermediary and, in
connection therewith, assign its rights under this Agreement to said third party
provided that said Agreement shall be binding upon the assignee in all respects
as to the obligations to the Buyer.  Buyer hereby agrees to reasonably cooperate
with Seller in the like-kind exchange without any cost, expense or liability to
Buyer and without reduction or alteration of the rights of Buyer under this
Agreement and with respect to Seller; provided, however that Buyer shall not be
required to undertake any liability or obligation and provided further that such
like-kind exchange does not extend the Closing Date or be a condition to
Closing.  As part of such like-kind exchange, Seller shall convey the Membership
Interests directly to Buyer and Buyer shall not be obligated to acquire any
other property or interests as part of such like-kind exchange.  Seller shall
indemnify and hold Buyer harmless and defend Buyer from any and all claims,
demands, causes of action, liabilities, losses, costs, damages and expenses
(including reasonable attorneys’ fees and expenses and court costs) of any kind
and nature in connection with Buyer’s cooperation with Seller to accomplish the
like-kind exchange for benefit of Seller.  Nothing herein shall release Seller
of any of the obligations or liabilities under this Agreement.  The terms of
this Section 26 shall survive Closing or any earlier termination of this
Agreement.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed
the day and year first above written.

SELLER:

RML Construction, LLP, a Kentucky limited liability partnership

    
By:
/s/ D. Ray Ball, Jr.
Name:
D. Ray Ball, Jr.
Its:
Partner

BUYER:

STEADFAST ASSET HOLDINGS, INC.,
a California corporation

By:
/s/ Ana Marie del Rio
Name:
Ana Marie del Rio
Its:
Vice President and Secretary

ACKNOWLEDGED AND AGREED:

Forty/57, LLC, a Kentucky limited liability company

        
By:
/s/ D. Ray Ball, Jr.
Name:
D. Ray Ball, Jr., as a Partner of RML
Its:
Construction, LLP, in its capacity as the sole manager of Forty 57, LLC

    
WAS01_41891870v5

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THE UNDERSIGNED HEREBY ACCEPTS THE FOREGOING PURCHASE AND SALE AGREEMENT AS OF
NOVEMBER 5, 2012, AND AGREES TO ACT AS ESCROW HOLDER IN ACCORDANCE THEREWITH.
Escrow to be governed under the laws of the State of California.

Escrow No. 749-M19

CHICAGO TITLE INSURANCE COMPANY
By:
/s/ Lorri Beasley

Escrow Officer

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EXHIBIT “A”
Description of Property

Being all of Lots 1a and 1b as shown on the 2nd Amended Final Record Plat of
Mahan Property, 4057 Mooncoin Way and 4161 & 4205 Victoria Way, Lexington,
Fayette County, Kentucky, of record in Plat Cabinet N, Slide 681, in the Fayette
County Clerk’s office.  

Being the same property conveyed to Grantor by Deed dated _____________, 2012,
of record in Deed Book ____, Page ____, in the Fayette County Clerk’s office.

EXHIBIT “A”
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EXHIBIT “B”

Personal Property Description
[Attached]

EXHIBIT “B”
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EXHIBIT “C”
Due Diligence Documents
 
CONSTRUCTION / REHABILITATION
1
Plans & Specifications: Site plan and most current civil, landscape,
architectural, structural mechanical, electrical and fire protection plans,
including elevations
2
Construction contracts, if any
3
Current capital improvements with schedule (past 3 years) and Capital
expenditure budget for next 3 years
4
Warranties in effect, if any (construction, roof, mechanical equipment, etc.)
5
Copies of all licenses and permits, including business license (with expiration
date & annual costs) and building permits (showing placed in service dates)
6
Certificate(s) of Occupancy for all buildings
7
List and description of tenant work in progress, if any
8
Copies of all governmental correspondence or notices pertaining to the property,
including but not limited to building code, health code, zoning and fire code
9
Maintenance records/work orders, including water intrusion log, for past 12
months
10
Operation & Maintenance (O&M) Manuals, if any, for maintenance of equipment
 
FINANCIAL
1
Monthly operating statements, YTD & 3-year historical (cash flow and income
statements, balance sheets)
2
Year-end financial statements: Trailing-12 and audited statements, past 3 years
3
Operating budget, current year and/or next available
4
Property tax bills and Assessment, current and past 3 years, with proof of
payment (including special assessments or districts and appeals)
5
Utility bills for any master-metered utility expenses and any resident unit
utilities paid by the Property, monthly YTD and past calendar year
6
List of utilities paid by Owner/Residents and list of account numbers
7
List of meters and required deposits (if any / typically for gas, electric,
water, phone)
8
Security deposit/resident ledgers, current
9
Name and version of accounting software
10
Tax returns, past 3 years - For company purchases only
11
Loan documents (full closing binder) - For loan assumptions only
12
REIT Property Services Questionnaire (form for completion attached hereto at end
of Exhibit C)
13
General Ledger, prior year, most recent quarter-end and YTD (in Excel format)
14
Trial Balance, prior year, most recent quarter-end and YTD (in Excel format)
15
Bank Statements and Reconciliations, prior year, most recent quarter-end and YTD
(monthly)
16
Cash Disbursement Journal, prior year, most recent quarter-end and YTD
17
Check Register, prior year, most recent quarter-end and YTD
18
Accounts Payable Aging Detail, prior year, most recent quarter-end and YTD
19
Aged Delinquency Report (showing total rent outstanding) with status of any
files placed for eviction or collection
20
Rent and expense selections, prior year, most recent quarter-end and YTD (25
respective selections to be made by Buyer’s independent REIT 3-14 auditors based
upon items received for #12-16 above)
21
Payroll selections, prior year, most recent quarter-end and YTD (2-months of
selections with detailed support to be made by Buyer’s independent REIT 3-14
auditors; detailed support to be requested may include inputs, timecards,
reimbursement calculations, agreements or contracts as necessary, to support and
recalculate the payroll amounts shown in the financial statements)
 
MANAGEMENT/LEASING/OPERATIONS

EXHIBIT “C”
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1
Monthly rent rolls, prior year and YTD, in Excel (format should include unit
square footage, monthly rent, deposits, financial concessions, other
concessions, lease term, extension options, defaults (financial or otherwise),
and such other information as Buyer may require)
2
Market rent survey (comparison of subject w/other properties)
3
Occupancy history, monthly for past 3 years and current YTD
4
Current leases for all tenants with all available tenant correspondence files
(including amendments/letters/agreements/default notices given or received)
5
Current or former lease selections, as the case may be, with copies of back-up
for rents received (for both resident and any housing authority portion paid, as
applicable), prior year and YTD (25 selections to be made by Buyer’s independent
REIT 3-14 auditors)
6
Current form of lease with all addenda
7
List of leases under negotiation or currently out for signature
8
Current tenant contact sheet (name, address, phone number)
9
Current staff list (names, titles, hire dates, salary, unit information)
10
Inventory of personal property on site, including items such as furniture,
supplies, appliances
11
Property brochure
12
Current list of all vendors utilized at the property (name, function, contact
information)
13
Copies of all operating and management service contracts, including but not
limited to:
 
a. Advertising
 
b. Alarm monitoring
 
c. Cable/TV (if none, please indicate so in writing)
 
d. Copier and any other equipment leases
 
e. Elevator
 
f. Equipment leases (such as copier, etc.)
 
g. Fire extinguisher
 
h. Furniture rental
 
i. HVAC
 
j. Janitorial services
 
k. Landscaping
 
l. Laundry
 
m. Pest control
 
n. Phone (landlines, cell phones, pagers)
 
o. Pool
 
p. Property management agreement; indicate whether entity is related party for
disclosure purposes
 
q. Security
 
r. Trash
 
PHYSICAL ITEMS
1
Property information, including number of pools, spas, dumpsters (with size),
buildings, storage units, laundry rooms
2
Marketing photos, including aerial photos if available
3
Parking: indicate carport, garages, or open spaces and how many of each
4
Unit floor plans with sq. footage
5
List of model units, if any (apt. #, bedrooms, rent loss)
6
List of fire safety equipment, such as smoke sensors, suppression devices, etc.
(including system type, rating, map of locations, etc.)
7
Current insurance certificates: Evidence of Commercial Property Insurance and
Certificate of Insurance
8
Insurance loss run history, past 3 years and YTD

EXHIBIT “C”
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9
Copies of insurance policies, past 3 years
10
All existing third party reports, including, but not limited to:
 
a. Certified, as-built ALTA Survey
 
b. Appraisal (if dated w/n 24 months)
 
c. Asbestos
 
d. Engineering study or inspection (structural or otherwise)
 
e. Lead Based Paint report
 
f. Mold
 
g. Phase I Environmental
 
h. Physical Needs Assessment
 
i. Operations & Maintenance (O&M) Plans, if any
 
j. Radon
 
k. Soils/Geotechnical
 
l. Termite
 
TITLE AND AGREEMENTS
1
Title Insurance Commitment and all recorded documents referenced therein
2
Zoning: any reports, compliance letters, maps, ordinances, amendments, CC&R’s,
special use permits, etc.
3
Pending litigation information, if applicable
4
Any agreements impacting the property: city or county development agreements,
bonds, etc.
5
Condo / Association documents, if applicable (articles of incorporation, bylaws,
CC&R’s, Declaration of Horizontal Regime, etc.)
 
OTHER DOCUMENTS SPECIFIC TO MEMBERSHIP INTERESTS TRANSFER
 
Resolutions of the members of Seller authorizing the transaction and from any
general partner (if applicable)
 
Incumbency certificates for the officers authorized to execute certain documents
 
Any minutes of meetings of the members (with any actions/resolutions) or written
consents/actions/resolutions in lieu of such meetings
 
Any letters from legal counsel delivered to auditors or any auditors reports
 
Confirmation that no changes in the accounting methods throughout the history of
Seller have occurred
 
Any outstanding Power of Attorneys
 
Any governmental agency inquiry or reports, including, without limitation, from
the EEOC, OSHA, or EPA.
 
List of all bank accounts
 
Copies of any municipal tax returns
 
Copies of all reports to members/stockholders
 
All Organizational Documents listed on Schedule 5 and amendments thereto
 
Current good standing certificate for Property Owner (state of formation and
property location)
 
All stockholder/member agreements regarding voting or other matters

REIT Property Services Questionnaire follows.

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REIT PROPERTY SERVICES QUESTIONNAIRE
MULTI-FAMILY APARTMENT PROPERTY

Property Information
Name of the property: ___________________________________________________
Location of the property: _________________________________________________
Description of the property: _______________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Are the on-site employees employed by the owner or by the property manager?
______
______________________________________________________________________

Property Manager Information    
Name of property management company: ____________________________________
Name of person completing this checklist and telephone and e-mail contact:
_________
______________________________________________________________________

1.
Is the amount of any rent received under any lease of space in the property
based or determined in full, or in part, on the “net” income or profits of the
tenant or any other person? [Note: rents based on a fixed percentage or
percentages of gross receipts or sales are not based on “net” income or
profits.]

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

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2.
Are there any leases where the FMV of the leased personal property (e.g.,
furniture, equipment, appliances, etc.) represents more than 15% of the total
fair market value of both the real property and personal property that is leased
under the lease?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

3.
Are there any leases in which the property owner owns, directly or indirectly,
10% or more of the ownership interests in the tenant?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

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4.
Please indicate whether the property owner provides any of the following
services to its tenants by checking the “Service Provided” box. Check the
“Customary” box if the service is usually and customarily offered or provided to
tenants of similar class properties in the same geographic market in which the
property is located. Also indicate (by checking “D” or “IK”) whether the owner
provides the service directly through its employees (D) or indirectly by
contracting with an independent contractor (IK) to provide the service. Check
the “Separate Charge” box, if the owner separately bills and collects a charge
for the service.

                
Service                Separate
Provided    Customary    D    IK    Charge

a.
Utilities (electricity, gas, water, sewer)     o    o    o    o    o

b.
Air conditioning, heating, lighting     o    o    o    o    o

c.
Telecommunication services (e.g.,     o    o    o    o    o

telephone, internet, cable, etc.)
d.
Repair and maintenance of building     o    o    o    o    o

and building systems
e.
Repair and maintenance of individual units    o    o    o    o    o

HVAC, ceiling, floors, walls, appliances
f.
Security of building common areas,     o    o    o    o    o

including security guards
g.
Fire protection and sprinkler systems     o    o    o    o    o

h.
Key and security card replacements     o    o    o    o    o

i.
Lock-out, lock changing service, rekeying    o    o    o    o    o

j.
Grounds maintenance and landscaping     o    o    o    o    o

k.
Janitorial/cleaning and maintenance    o    o    o    o    o

of common areas
l.
Trash removal from designated locations    o    o    o    o    o

m.
Washing exterior windows    o    o    o    o    o

n.
Pest control    o    o    o    o    o

o.
Provision of parking spaces    o    o    o    o    o

p.
Organizing social activities    o    o    o    o    o

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5.
Please indicate whether the property owner provides any of the following
amenities to its tenants by checking the “Amenity Provided” box. Check the
“Customary” box if the amenity is usually and customarily offered or provided to
tenants of similar class properties in the same geographic market in which the
property is located.

Amenity                
Provided    Customary    

a.
Fitness center, health club     o    o

b.
Locker facilities, showers    o    o

c.
Towels    o    o

d.
Other recreational facilities    o    o    

e.
Business center    o    o    

f.
Clubhouse, party room    o    o

g.
Car wash area    o    o

h.
Coin-operated laundry machines (through    o    o

a lease/license with a vendor)    
i.
Coin-operated vending machines (through     o    o    

a lease/license with a vendor)
j.
ATM (through     o    o    

a lease/license with a vendor)
k.
Pay telephone (through     o    o    

a lease/license with a vendor)
l.
Shoe shine booth (through     o    o    

a lease/license with a vendor)
m.
Mail and express mail drop boxes    o    o

n.
Loading dock    o    o

o.
Dry cleaning drop-off & pick-up location    o    o

p.
CPR training, blood drives    o    o

q.
Seasonal/holiday parties, events, displays    o    o

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If any services are provided in connection with the amenities (other than
electricity and general maintenance and cleaning of the area where an amenity is
located), please explain. For example, explain the duties of any attendants
involved with the business center. Also indicate whether these services are
usually and customarily offered or provided to tenants of similar class
properties in the same geographic market in which the property is located.
(Note: fitness centers and other recreational facilities are addressed in more
detail in a following question.) ______________________________
____________________________________________________________________________________________________________________________________________________________________
______________________________________________________________________

6.    Please indicate whether the property owner provides any of the following
courtesies to its tenants by checking the “Courtesy Provided” box. Check the
“Customary” box if the courtesy is usually and customarily offered or provided
to tenants of similar class properties in the same geographic market in which
the property is located.

Courtesy                
Provided    Customary    

a.
Fax, copier    o    o

b.
Loaning jumper cables, tools    o    o    

c.
Loaning vacuum cleaner, sports equipment    o    o

d.
Accepting tenant’s packages, flowers    o    o

e.
Notary public    o    o    

f.
Distribution of promotional materials    o    o

for third party

If any special services are provided in connection with the courtesies, please
explain. Also indicate whether any special services are usually and customarily
offered or provided to tenants of similar class properties in the same
geographic market in which the property is located.
___________________________________________________
______________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________

7.
Does the property owner provide maid service within any apartment unit (other
than “corporate” or “guest” units which are addressed in the following
question)?

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YES o NO o (If yes, answer the remaining questions)
If “yes”, please explain who provides the maid service, and explain the
contractual relationship pursuant to which the maid services is provided – e.g.,
whether the property owner or tenant contracts with the maid company.
_____________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Are the maid services that are provided of a kind that are usually and
customarily offered or provided to tenants of similar class properties in the
same geographic market in which the property is located? YES o NO o

Please provide (i) the estimated annual amount of income received or earned by
the property owner that is attributable to the maid service (e.g., any separate
charge received by the property owner for the service, or the amount of rents
received by the property owner that is attributable to such service) and (ii)
the estimated annual amount of direct costs incurred by the property owner in
providing the maid service. Also provide the estimated annual gross revenue
derived at the property. ________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

8.
Does the property owner lease “guest units” or “corporate units” where maid
service, linen service and other services are provided within fully furnished
units?

YES o NO o (If yes, answer the remaining questions)
If “yes”, please explain who provides the maid service and linen service, and
explain the contractual relationship pursuant to which the maid and linen
services are provided. Also identify all services provided that differ from
services that are provided to a tenant of a regular
unit._________________________________________________________
______________________________________________________________________
______________________________________________________________________

Are each of the maid and linen services and other services that are provided of
a kind that are usually and customarily offered or provided to tenants of
similar class properties in the same geographic market in which the property is
located?
YES o NO o

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Please provide (i) the estimated annual amount of income received or earned by
the property owner that is attributable to the maid, linen and other services
provided (e.g., any separate charge received by the property owner for such
services, or the amount of rents received by the property owner that is
attributable to such services) and (ii) the estimated annual amount of direct
costs incurred by the property owner in providing the services.
_______________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

9.
Does the property owner provide security services at the property?

YES o NO o (If yes, answer the remaining questions)
Are the security services (including duties of the security personnel) of a kind
that are usually and customarily offered or provided to tenants of similar class
properties in the same geographic market in which the property is located? YES o
NO o

Are the security services provided for the general property, and not include
specialized security services for a particular tenant? YES o NO o

10.
Does the property owner provide parking spaces to its tenants (other than by net
leasing the parking facilities to an unrelated person, who in turn, operates the
parking facilities as part of its own business)?

YES o NO o (If “yes”, answer the remaining questions)
Check the box or boxes that describe the parking facilities (check more than one
box if applicable):
•
Open lot or garage (circle one) with no gated entry

•
Open lot or garage (circle one) with gated entry

•
Open lot or garage (circle one) with gated entry and cashier / parking attendant
on duty

•
Reserved parking

•
Public parking available for a hourly, daily or monthly charge

Are the parking facilities located in or adjacent to the property, and are the
parking facilities appropriate in size for the number of tenants and their
guests, customers, and subtenants who are expected to use the facilities? YES o
NO o

Does the property owner provide any services in connection with the parking
facilities (other than maintenance, repair, and lighting of the facilities)? YES
o NO o

If “yes”, please explain. __________________________________________________
______________________________________________________________________
______________________________________________________________________

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______________________________________________________________________

Are the services provided in connection with the parking facilities of a kind
that are usually and customarily offered or provided to tenants of similar class
properties in the same geographic market in which the property is located? YES o
NO o

Do tenants make separate payments for the use of parking spaces? YES o NO o

Are certain parking spaces reserved for use by particular tenants? YES o NO o

If “yes”, are recurring functions unique to the reserved parking spaces (other
than assigning and marking such spaces), such as towing illegally parked cars,
performed by an independent contractor? YES o NO o

Are parking attendants provided at the parking facilities to facilitate parking
by the general public for a parking fee? YES o NO o

If “yes”, are the parking attendants employed by an independent contractor who
operates the parking facilities under a management agreement with the property
owner?
YES o NO o

Are the services provided by the independent contractor usually and customarily
offered or provided to tenants of similar class properties in the same
geographic market in which the property is located? YES o NO o

If the independent contractor provides any services (other than maintenance,
repairs, and cleaning of the parking facilities; collecting parking fees;
parking cars to achieve the maximum capacity of the parking facility or for
reasons of safety or security) please describe (e.g., indicate if the
independent contractor provides or arranges for automobile detailing, washing,
oil changes and repairs etc.). ________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Are these additional services provided by the independent contractor usually and
customarily offered or provided to tenants of similar class properties in the
same geographic market in which the property is located? YES o NO o

11.
Are all repair and maintenance services provided within the individual units
(e.g., repairs and maintenance of HVAC, plumbing, walls, ceilings, doors,
floors, and appliances) of a kind that are usually and customarily offered or
provided to tenants of similar class properties in the same geographic market in
which the property is located?

YES o NO o (answer the remaining questions)

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Are there any other services provided within a unit (excluding repair and
maintenance services described above and maid and other services addressed in
the preceding two questions)?
 
If “yes”, please describe the additional services provided.
________________________
______________________________________________________________________
______________________________________________________________________

Are each of these additional services provided of a kind that are usually and
customarily offered or provided to tenants of similar class properties in the
same geographic market in which the property is located? YES o NO o

12.
Does the property owner provide coin-operated laundry machines and vending
machines?

YES o NO o (If yes, answer the remaining questions)
Does the property owner lease/license space to the owner of the laundry and
vending machines and receive rental/license fees that are not based on “net”
income?
YES o NO o

Does the property owner provide any services other than electricity and cleaning
and maintenance of the area where the equipment is located? YES o NO o

If “yes”, please describe the additional services provided.
________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Are each of these additional services provided of a kind that are usually and
customarily offered or provided to tenants of similar class properties in the
same geographic market in which the property is located? YES o NO o

Does the property owner own any of the laundry or vending machines?
YES o NO o

If “yes”, please provide details of what is owned.
______________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

13.
Has the property owner entered into agreements (generally a license or lease
agreement) with telecommunication providers that permit the providers to wire
the building and provide telecommunication services (e.g., telephone, cable,
internet, data transmission, etc.) to

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tenants pursuant to which the property owner receives fees, or does the owner
otherwise directly provide telecommunication services (specify which applies)?
YES o NO o (If “yes”, answer the remaining questions)
If the owner directly provides telecommunication services to its tenants, please
explain the arrangement.
________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Are the telecommunications services offered to the tenants of the type usually
and customarily offered or provided to tenants of similar class properties
located in the same geographic market in which the property is located?
YES o NO o

14.
Does the property owner provide any “concierge” services (e.g., ordering food,
running errands, making restaurant reservations, ordering theatre tickets,
picking up dry cleaning, etc.) to the tenants?

YES o NO o
If “yes”, please describe the type of concierge services provided and by whom
(employees or independent contractor). ______________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Are each of the concierge services of the type usually and customarily offered
or provided to tenants of similar class properties located in the same
geographic market in which the property is located? YES o NO o

Please provide (i) the estimated annual amount of income received or earned by
the property owner that is attributable to the concierge services provided
(e.g., any separate charge received by the owner for such service, or the amount
of rents received by the property owner that is attributable to such service)
and (ii) the estimated annual amount of direct costs incurred by the property
owner in providing the concierge services. ____
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

15.
Does the property owner provide a fitness center or other recreational
facilities at the property?

EXHIBIT “C”
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YES o NO o
If “yes”, please describe the type of fitness center or other recreational
facilities provided at the property (e.g., fitness center, gym, basketball
court, swimming pool, etc.).
__________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Are the recreational facilities and equipment provided therein of the type
usually and customarily offered or provided to tenants of similar class
properties located in the same geographic market in which the property is
located? YES o NO o
Do tenants pay a fee to use any facility or is any facility open to non-tenants
for a fee? YES o NO o

If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________

Does the property owner provide any services in connection with the facilities
(other than electricity, lighting, and cleaning and maintenance) including for
example, any attendants on site proving fitness instruction or other services?
YES o NO o

If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
 
Are these additional services of a type usually and customarily offered or
provided to tenants of similar office properties located in the same geographic
markets where the properties are located? YES o NO o

Please provide (i) the estimated annual amount of income received or earned by
the property owner that is attributable to these additional services provided
(e.g., any separate charge received by the owner for such service, or the amount
of rents received by the property owner that is attributable to such service)
and (ii) the estimated annual amount of direct costs incurred by the property
owner in providing these additional services.
_______________________________________________________________
______________________________________________________________________
______________________________________________________________________

16.
Are there any services, amenities, or courtesies provided to tenants that are
not of a kind usually and customarily offered or provided to tenants of similar
class properties in the same

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geographic market in which the property is located (“noncustomary services”) and
that have not been identified in previous questions.
YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
For each noncustomary service, please provide (i) the estimated annual amount of
income received or earned by the property owner that is attributable to the
noncustomary service (e.g., any separate charge received by the owner for such
service, or the amount of rents received by the property owner that is
attributable to such service) and (ii) the estimated annual amount of direct
costs incurred by the property owner in providing the noncustomary service. Also
provide the estimated annual gross revenue derived at the property.
____________________________________________
______________________________________________________________________
______________________________________________________________________

17.
Does the property owner provide any of the services listed below?

YES o NO o (If “yes”, please circle the services provided.)
•
Provision of food service (e.g., including a cafeteria) either directly or
through a management agreement with a food service provider

•
Transportation services, shuttle bus

•
Day care or health care services

•
Full service conference center services

•
Secretarial services

•
Real estate brokerage

•
Pick-up, shipping of goods, logistics

•
Interior design & decorating

•
Plant care/watering within tenant’s space

•
Assisting tenant in move-in/move-out

•
Coffee butler services

•
Automobile detailing, washing

•
Automobile oil change, repairs

If the property owner provides any of these services, and the services have not
been reported as “noncustomary” services in Question #16, please describe
details associated with the service, and provide (i) the estimated annual amount
of income received or earned by the property owner that is attributable to the
noncustomary service (e.g., the separate charge received by the owner for such
service, or the amount of rents received by the property owner that is
attributable to such service)

EXHIBIT “C”
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and (ii) the estimated annual amount of direct costs incurred by the property
owner in providing the noncustomary service. Also provide the estimated annual
gross revenue derived at the property. ____
______________________________________________________________________
____________________________________________________________________________________________________________________________________________________________________

18.
Are there any other services, amenities, or courtesies offered or provided to
tenants which have not been covered or identified in the previous questions?

YES o NO o
If “yes”, please describe and indicate whether each service, amenity, or
courtesy is usually and customarily offered or provided to tenants of similar
class properties in the same geographic market in which the property is located.
________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

19.
Does the property owner have a below fair market lease with any tenant (e.g., a
restaurant, cafeteria, or health club tenant) at the property that is intended
to subsidize the provision of that tenant’s services to other tenants at the
property, or does the owner actually pay any subsidy to a tenant?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
20.
Are there any leases/licenses of property involving a term of less than 30 days?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

21.
Are you aware of any lease agreement with terms that are not usual, ordinary,
and customary?

YES o NO o

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If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

22.
In cases where the property owner offers or provides any services by contracting
with an independent contractor to provide such services, does the property owner
receive or derive any income from the independent contractor – e.g., through the
receipt of interest from a loan to such independent contractor, dividends from
an investment in such contractor, rents from leasing space to such contractor,
etc.? [Please consider whether a parking company that has been engaged to
operate a parking facility is paying rents to the owner under a lease of a
parking facility or other space at another property.]

YES o NO o

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If “yes”, please describe __________________________________________________
______________________________________________________________________
______________________________________________________________________

23.
In cases where the property owner offers or provides any services by contracting
with an independent contractor to provide such service, does the property owner
have any ownership interest in such independent contractor, or does the
independent contractor have an ownership interest in the property owner, or are
you aware of any other related-party ownership between the property owner and
the independent contractor?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

24.
Does the property owner receive a fee, commission, incentive payments, or any
other type of payment from any independent contractor that is providing services
to the tenants?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________

Are the services that are provided by the independent contractor of a kind that
are usually and customarily offered or provided to tenants of similar class
properties in the same geographic market in which the property is located? YES o
NO o
                        
25.
Does the property owner receive any amounts for selling any goods or services
(other than tenant services addressed in the preceding questions) to its tenants
or other parties?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________

26.
Does the property owner receive management fees for providing services to
properties that are not owned by the property owner or properties that are only
partially owned (e.g., through a partnership) by the property owner?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________

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______________________________________________________________________
                                                                                                    
27.
Are you aware of any other sources of property income not identified through the
previous questions (e.g., referral fees from 3rd parties, advertising income,
etc.)?    

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________

28.
Has the property owner made any loans to a tenant, vendor, or other parties or
otherwise received a promissory note?    

YES o NO o
If “yes”, please describe __________________________________________________
______________________________________________________________________
______________________________________________________________________

    

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EXHIBIT “D”
Form of Assignment
MEMBERSHIP INTERESTS ASSIGNMENT AND ASSUMPTION
THIS MEMBERSHIP INTERESTS ASSIGNMENT AND ASSUMPTION (this “Assignment”) is made
and entered into effective for all purposes and in all respects as of the ___
day of _______, 2012, by and between RML Construction, LLP, a Kentucky limited
liability partnership (“Assignor”), and ______________, a ___________
(“Assignee”).

RECITALS:

A.    Assignor is the owner of 100% of the membership interests (“Membership
Interests”) in Forty/57, LLC, a Kentucky limited liability company (the
“Company”), the fee simple property owner of that certain land with a
multifamily residential project commonly known as Forty 57 at Glasford
Apartments, consisting of 436 units situated thereon, located at 4057 Mooncoin
Way, Lexington, Kentucky. The Company exists as of the date hereof as a Kentucky
limited liability company pursuant to that certain Articles of Organization
filed with the Secretary of State of the State of Kentucky on March 8, 2011 and
is governed by that certain Operating Agreement dated as of March 8, 2011 (the
“Operating Agreement”).

B.    Assignor is the sole member of the Company and owns all of the limited
liability company interests in the Company.
C.     Assignor is conveying various assets to Assignee on even date herewith
(including, without limitation, the “Assigned Interest” (as hereinafter
defined)) pursuant to that certain Purchase and Sale Agreement and Joint Escrow
Instructions, dated as of November 5, 2012, by and between Assignor and Assignee
(as may be amended from time to time, the “Purchase Agreement”).
D.    In connection with the transactions described above and in the Purchase
Agreement, Assignor desires to transfer and assign to Assignee the Assigned
Interest effective as of the date hereof, and Assignee desires to accept the
transfer and assignment of the Assigned Interest upon the terms and conditions
provided herein.
NOW, THEREFORE, in consideration of the foregoing, of the mutual promises set
forth herein, and other good and valuable consideration, the receipt and
sufficiency of which hereby is acknowledged, it is hereby agreed as follows:
Section 1.Definitions. As used herein, the term “Assigned Interest” means all of
the Membership Interests in the Company held by Assignor, and all rights, title
and privileges of Assignor relating thereto, which also constitutes 100% of the
“Interests” and "Manager Interests" (as such term is defined in the Operating
Agreement), including, without limitation, all rights to all capital, profits,
losses, allocations and distributions, and rights to vote and grant or withhold
consents

EXHIBIT “D”
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and other rights and privileges under the Operating Agreement and the Ohio
Limited Liability Company Act appurtenant to Assignor's Membership Interests
assigned hereby.
Section 2.Assignment and Acceptance. Assignor does hereby transfer, assign and
deliver unto Assignee, and Assignee does hereby accept the transfer, assignment
and delivery of, the Assigned Interest. Assignee hereby accepts the Assigned
Interest and hereby assumes all obligations and liabilities arising or accruing
in connection with the Assigned Interest from and after the date hereof.
Section 3.Joinder to Operating Agreement. By execution of this Assignment,
Assignee shall be deemed joined as a party to the Operating Agreement and shall
be bound by all of the terms and conditions thereof as if Assignee had executed
the Operating Agreement. It is the intention of the parties that immediately
after giving effect to the consummation of the transactions contemplated by this
Assignment that Assignee shall be the sole member of the Company.
Section 4.Survival; Representations.    This Assignment is being delivered by
Assignor and Assignee pursuant to Section 10.1.1 and 10.2 of the Purchase
Agreement, respectively, and is given in accordance with the requirements of the
Purchase Agreement. The obligations of the parties thereunder, including any
representations and warranties made by the parties therein, shall survive the
closing of the transaction of the Purchase Agreement as provided therein.
Section 5.Incorporation of Recitals. The recitals set forth herein are hereby
incorporated by reference and made a part of this Assignment.
Section 6.Further Assurances. Each of the parties agrees to and shall execute
and deliver further assurances of the transfer, assignment and delivery of the
Assigned Interest, and the acceptance and assignment of the same, as the other
party shall reasonably request to effectuate the terms of this Assignment.
Section 7.Interpretation. This Assignment shall be governed and construed in
accordance with the internal laws of the State of Kentucky, without regard to
conflicts of interest considerations.
Section 8.Miscellaneous. The captions in this Assignment are inserted for
convenience only, and do not define, describe or limit the scope or intent of
this Assignment or the provisions hereof. Assignor and Assignee agree that this
Assignment shall be interpreted and construed in accordance with its plain
meaning and without reliance upon, or implication, inference or assumption
arising from, the fact that this Assignment may have been drafted, in whole or
in part, for or on behalf of any party hereto. This Assignment represents the
parties’ entire understanding with respect to its subject matter and supersedes
all prior communications, understandings and agreements with respect thereto.
This Assignment may be executed in one or more counterparts, each of which shall
be deemed to be an original, and all of which together shall constitute one and
the same instrument. This Assignment shall be binding upon and inure to the
benefit of Assignor and Assignee and their respective successors and assigns. If
any term or provision of this Assignment or the application thereof to any
persons or circumstances shall, to any extent, be invalid or unenforceable, the
remainder of this Assignment or the application of such term or provision to the
persons or

EXHIBIT “D”
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circumstances other than those as to which are held invalid or unenforceable
shall not be affected thereby, and each term and provision of this Assignment
shall be valid and enforceable to the fullest extent permitted by law.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

EXHIBIT “D”
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IN WITNESS WHEREOF, the parties have executed this Assignment effective as of
the date first written above.

ASSIGNOR

RML Construction, LLP, a Kentucky limited liability partnership

By: ________________________________
Name: ______________________________
Its: _________________________________

ASSIGNEE

[__________________]

By: ________________________________
Name: ______________________________
Its: _________________________________

EXHIBIT “D”
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EXHIBIT “E”
Form of Assignment of Leases
ASSIGNMENT AND ASSUMPTION
OF LEASES, CONTRACTS AND APPROVALS

THIS ASSIGNMENT AND ASSUMPTION OF LEASES, CONTRACTS AND APPROVALS (this
“Assignment”) is made as of the _____ day of __________________, 2012, by and
between RML Construction, LLP, a Kentucky limited liability partnership
(“Assignor”), and Forty/57, LLC, a Kentucky limited liability company
(“Assignee”).
W I T N E S S E T H:
For good and valuable consideration, receipt and sufficiency of which are hereby
acknowledged, Assignor and Assignee hereby agree as follows:
1.    Assignor hereby sells, transfers, assigns and conveys to Assignee the
following:
(a)    All right, title and interest of Assignor in and to those certain leases
described on Exhibit A attached hereto and made a part hereof (collectively, the
“Leases”), relating to the leasing of space in or on that certain land and
improvements located in the County of Fayette, State of Kentucky, more
particularly described in Exhibit B attached hereto, and all of the rights,
interests, benefits and privileges of the lessor thereunder, and all prepaid
rents and security or other deposits held by Assignor under the Leases and not
credited to Assignee under the Purchase Agreement (defined below) or credited or
returned to tenants; but subject to all terms, conditions, reservations and
limitations set forth in the Leases.
(b)    To the extent assignable and without costs to Seller, all right, title
and interest of Assignor in and to those certain contracts set forth on Exhibit
C attached hereto and made a part hereof, and all warranties, guaranties,
indemnities and claims (including, without limitation, for workmanship,
materials and performance) and which exist or may hereafter exist against any
contractor, subcontractor, manufacturer or supplier or laborer or other services
relating thereto (collectively, the “Contracts”).
(c)    To the extent assignable, all right, title and interest of Assignor in
and to those certain licenses, permits, certificates of occupancy and
governmental approvals relating to the Property, including without limitation
those identified on Exhibit D attached hereto and made a part hereof
(collectively, the “Approvals”) and any plans, specifications, studies, reports
or surveys relating to the Property.
2.    This Assignment is given pursuant to that certain Purchase and Sale
Agreement and Joint Escrow Instructions (as amended, the “Purchase Agreement”)
dated as of November 5, 2012, between Assignor and STEADFAST ASSET HOLDINGS,
INC., a California corporation, providing for, among other things, the
conveyance of the Leases, the Contracts and the Approvals to Assignee.

EXHIBIT “E”
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3.    Assignee hereby accepts the assignment of the Leases, the Contracts and
the Approvals and agrees to assume and discharge, in accordance with the terms
thereof, all of the obligations thereunder arising from and after the date
hereof.
4.    Assignor agrees to indemnify, defend and hold harmless Assignee from and
against any and all claims, damages, liabilities, losses, costs and expenses
(including, without limitation, reasonable attorneys’ fees and expenses)
asserted against or suffered or incurred by Assignee as a result of or in
connection with any liabilities or obligations under the Leases, the Contracts
or the Approvals relating to periods prior to the date hereof if and to the
extent and for the period provided in the Purchase Agreement.

5.    In any action to enforce the provisions of this Assignment, the prevailing
party shall be entitled to an award of its attorneys’ fees and costs. This
Assignment may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same Assignment. The terms, covenants and conditions
hereof shall inure to the benefit of and be binding upon the respective parties
hereto, their heirs, executors, administrators, successors and assigns. Any
alteration, change or modification of or to this Assignment, in order to become
effective, must be made in writing and in each instance signed on behalf of each
party to be charged. No provision of this Assignment that is held to be
inoperative, unenforceable or invalid shall affect the remaining provisions, and
to this end all provisions of this Agreement shall be severable. This Assignment
shall be governed by the laws of the State of Kentucky.

IN WITNESS WHEREOF, the parties have executed this Assignment as of the date
first above written.
                
ASSIGNOR:
 
RML Construction, LLP, a Kentucky limited liability partnership
 
 
By:
 
Name:
 
Its:
 

                
ASSIGNEE:
 
Forty/57, LLC, a Kentucky limited liability company
 
 
By:
 
Name:
 
Title:
 

EXHIBIT “E”
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Exhibit A    Leases
Exhibit B    Description of the Property
Exhibit C    Contracts
Exhibit D    Approvals

EXHIBIT “E”
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EXHIBIT “F”
Form of Bill of Sale
BILL OF SALE
Know all men by these presents, that RML Construction, LLP, a Kentucky limited
liability partnership (“Grantor”), for and in consideration of the sum of ten
dollars and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, does bargain, sell, grant, transfer, assign,
and convey to Forty/57, LLC, a Kentucky limited liability company (“Grantee”)
all of its right, title, and interest, if any, in and to any and all tangible
personal property owned by Grantor and now at, in or upon or used in connection
with the property commonly known as Forty 57 at Glasford Apartments, located in
the City of Lexington, County of Fayette and State of Kentucky (“Property”), and
more particularly described on Exhibit A attached hereto.
Grantor is selling and Grantee is purchasing the Property “AS IS WHERE IS” with
all faults except as provided in that certain Purchase and Sale Agreement and
Joint Escrow Instructions dated as of November 5, 2012 between Grantor and
STEADFAST ASSET HOLDINGS, INC., a California corporation.
IN WITNESS WHEREOF, Grantor has executed this Bill of Sale as of the ____ day of
___________________, 2012.

RML Construction, LLP, a Kentucky limited liability partnership

By: _____________________________________
Name: ___________________________________
Its: ______________________________________

EXHIBITS:
A - Legal Description

EXHIBIT “F”
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Exhibit A
Legal Description
Being all of Lots 1a and 1b as shown on the 2nd Amended Final Record Plat of
Mahan Property, 4057 Mooncoin Way and 4161 & 4205 Victoria Way, Lexington,
Fayette County, Kentucky, of record in Plat Cabinet N, Slide 681, in the Fayette
County Clerk’s office.  

Being the same property conveyed to Grantor by Deed dated _____________, 2012,
of record in Deed Book ____, Page ____, in the Fayette County Clerk’s office.

EXHIBIT “F”
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EXHIBIT “G”
Form of Non-Foreign Certificate
[ONE TO PROPERTY OWNER AND ONE TO BUYER AT CLOSING]
CERTIFICATE OF NON-FOREIGN STATUS
Section 1445 of the Internal Revenue Code provides that a transferee of a U.S.
real property interest must withhold tax if the transferor is a foreign person.
To inform _________________________ (“Transferee”), that withholding of tax is
not required upon the disposition of a U.S. real property interest by RML
Construction, LLP, a Kentucky limited liability partnership (“Transferor”), the
undersigned hereby certifies to Transferee the following on behalf of
Transferor:

1.    Transferor is not a foreign corporation, foreign partnership, foreign
trust, or foreign estate (as those terms are defined in the Internal Revenue
Code and Income Tax Regulations);
2.    Transferor’s U.S. employer identification number is _____________; and
3.    Transferor’s office address is _________________________________________.
Transferor understands that this certification may be disclosed to the Internal
Revenue Service by Transferee and that any false statement contained herein
could be punished by fine, imprisonment, or both.
Under penalties of perjury, the undersigned declares that the undersigned has
examined this certification and to the best of the undersigned’s knowledge and
belief it is true, correct and complete, and the undersigned further declares
that the undersigned has authority to sign this document on behalf of
Transferor.
Dated as of ____________________, 20__.
                        
RML Construction, LLP, a Kentucky limited liability partnership
 
 
By:
 
Name:
 
Title:
 

EXHIBIT “G”
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EXHIBIT “H”
Form of Tenant Notice

[**DATE**]

TO:
All Valued Residents of [**COMMUNITY NAME**]

Re:    Notice of Change of Address

This letter is to notify you of a change with respect to the property commonly
known as Forty 57 at Glasford Apartments, 4057 Mooncoin Way, Lexington, KY
(“Property”). All of the interest of the lessor/landlord under your lease of
space in the Property, together with your security deposit, have been
transferred to Forty/57, LLC, a Kentucky limited liability company.

You are hereby notified that from and after the date hereof and until further
notice, all future payments under your lease should be made payable to Forty 57
at Glasford Apartments and mailed to [**COMMUNITY LEASING OFFICE ADDRESS**]. In
addition, all questions or other matters regarding your lease should be directed
to the property manager at [**COMMUNITY LEASING OFFICE PHONE NUMBER**].

Thank you for your cooperation.

                
RML Construction, LLP, a Kentucky limited liability partnership
 
 
By:
 
Name:
 
Its:
 

                
Forty/57, LLC, a Kentucky limited liability company
 
 
By:
 
Name:
 
Its:
 

EXHIBIT “H”
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EXHIBIT “I”

Form of Deed

SPECIAL WARRANTY DEED

THIS SPECIAL WARRANTY DEED is made as of ____________ ___, 2012, between

___________________________________
____________________
____________________
____________________                             (the “Grantor”)

and
___________________________________
____________________
____________________
____________________                            (the “Grantee”)

W I T N E S S E T H:

For good and valuable consideration, the receipt of which is hereby acknowledged
by Grantor, Grantor does hereby grant and convey unto Grantee in fee simple and
with covenant of Special Warranty all of Grantor’s right, title and interest in
and to the real property, together with all improvements thereon and
appurtenances thereto, located in Fayette County, Kentucky and more fully
described as follows (the “Property”):

Being all of Lots 1a and 1b as shown on the 2nd Amended Final Record Plat of
Mahan Property, 4057 Mooncoin Way and 4161 & 4205 Victoria Way, Lexington,
Fayette County, Kentucky, of record in Plat Cabinet N, Slide 681, in the Fayette
County Clerk’s office.  

Being the same property conveyed to Grantor by Deed dated _____________, 2012,
of record in Deed Book ____, Page ____, in the Fayette County Clerk’s office.

Grantor covenants lawful seisin of the estate hereby conveyed, full right and
power to convey same and that said estate is free of encumbrances except liens
for real property taxes and assessments due and payable in 2012, and thereafter,
which Grantee assumes and agrees to pay; however, this conveyance is made
subject to easements, covenants, restrictions and stipulations of record and
governmental laws and regulations affecting the Property herein conveyed.

EXHIBIT “H”
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To have and to hold the Property together with all of the rights, privileges,
appurtenances and improvements thereunto belonging unto the Grantee, and its
successors and assigns forever, with covenant of special warranty of title.

TRANSFER YEAR PROPERTY TAX BILL TO BE ADDRESSED IN CARE OF THE GRANTEE,
__________________________________________________________________________.

GRANTOR:                         

___________________________________,
____________________

By:_________________________________________
    
Title:______________________________________
        
Date: ____________ ___, 2012

(the “Grantor”)

Consideration Certificate

For purposes of KRS Chapter 382.135, Grantor and Grantee, by execution of this
Special Warranty Deed swear and affirm, under penalty of perjury that the
Property herein conveyed is transferred for the full, accurate and true
consideration _______________________________ Dollars ($____________).

EXHIBIT “H”
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GRANTOR:                         GRANTEE:

___________________________________,        ___________________________________,
____________________                ____________________

By:________________________________        By:________________________________    

Title:_______________________________     Title:_______________________________
                            
Date: ____________ ___, 2012            Date: ____________ ___, 2012

COMMONWEALTH OF KENTUCKY     )
) SS:
COUNTY OF FAYETTE            )

The Special Warranty Deed and foregoing consideration statement were subscribed,
sworn to and acknowledged before me this ___ day of ____________, 2012, by
____________________ who acknowledged himself to be the ____________________ of
___________________________________, a ____________________, and the within
named Grantor, to be the free act and voluntary deed of said company and to be
his free act and voluntary deed as its officer aforesaid.

My commission expires: _________________________.

________________________________________
NOTARY PUBLIC

COMMONWEALTH OF KENTUCKY     )
) SS:
COUNTY OF FAYETTE            )

The Special Warranty Deed and foregoing consideration statement were subscribed,
sworn to and acknowledged before me this ___ day of ____________, 2012, by
____________________ who acknowledged himself to be the ____________________ of
___________________________________, a ____________________, and the within
named Grantee, to be the free act and voluntary deed of said company and to be
his free act and voluntary deed as its officer aforesaid.

EXHIBIT “I”
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My commission expires: _________________________.

________________________________________
NOTARY PUBLIC

THIS INSTRUMENT PREPARED BY:

__________________________________

EXHIBIT “I”
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SCHEDULE 1

LEASES

See Schedule 4 (Rent Roll)

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SCHEDULE 2

CONTRACTS

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SCHEDULE 4

RENT ROLL

[Attached]

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SCHEDULE 5

ORGANIZATIONAL DOCUMENTS

Articles of Organization filed with the Secretary of State of the State of
Kentucky on March 8, 2011

Operating Agreement dated as of March 8, 2011

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SCHEDULE 6

STATEMENT OF LIABILITIES

NONE

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