Document:

Exhibit

Exhibit 10.11

PURCHASE AND SALE AGREEMENT
CANTERWOOD APARTMENTS
BOULDER, COLORADO
BETWEEN
TRM - MEREDITH PARK CORP.
AS SELLER
AND
RRE OPPORTUNITY OP II, LP
AS PURCHASER
Dated:
December 1, 2015
(the “Effective Date”)

TABLE OF CONTENTS

Page

		
	1.
	THE PROPERTY    1

		
	1.1
	Description.    1

		
	1.2
	“As‐Is” Purchase.    2

		
	1.3
	Agreement to Convey.    3

		
	2.
	PRICE AND PAYMENT.    4

		
	2.1
	Purchase Price.    4

		
	2.2
	Payment.    4

		
	2.3
	Closing.    5

		
	3.
	INSPECTIONS AND APPROVALS.    5

		
	3.1
	Inspections.    5

		
	3.2
	Title and Survey; Approval or Disapproval.    8

		
	3.3
	Contracts.    9

		
	3.4
	Permitted Encumbrances.    9

		
	3.5
	Purchaser’s Right to Terminate.    10

		
	3.6
	Delivery of Title Policy at Closing.    10

	
			
	 
	i
	 

TABLE OF CONTENTS
(continued)
Page

		
	4.
	SELLER’S COVENANTS FOR PERIOD PRIOR TO CLOSING.    10

		
	4.1
	Insurance.    10

		
	4.2
	Operation.    11

		
	4.3
	New Contracts.    11

		
	4.4
	New Leases.    11

		
	4.5
	Rent-Ready.    11

		
	4.6
	Material Events.    11

		
	5.
	REPRESENTATIONS AND WARRANTIES.    11

		
	5.1
	By Seller.    11

		
	5.2
	By Purchaser.    13

		
	5.3
	Mutual.    14

		
	6.
	COSTS AND PRORATIONS.    14

		
	6.1
	Purchaser’s Costs.    14

		
	6.2
	Seller’s Costs.    15

		
	6.3
	Prorations.    15

	
			
	 
	ii
	 

TABLE OF CONTENTS
(continued)
Page

		
	6.4
	Taxes.    15

		
	6.5
	In General.    16

		
	6.6
	Purpose and Intent.    16

		
	7.
	DAMAGE, DESTRUCTION OR CONDEMNATION.    16

		
	7.1
	Material Event.    16

		
	7.2
	Immaterial Event.    16

		
	7.3
	Termination and Return of Deposit.    17

		
	8.
	NOTICES.    17

		
	9.
	CLOSING AND ESCROW.    18

		
	9.1
	Escrow Instructions.    18

		
	9.2
	Seller’s Deliveries.    18

		
	9.3
	Purchaser’s Deliveries.    19

		
	9.4
	Possession.    19

		
	9.5
	Insurance.    19

		
	9.6
	Post‐Closing Collections.    19

	
			
	 
	iii
	 

TABLE OF CONTENTS
(continued)
Page

		
	9.7
	Additional Obligations of Seller and Purchaser.    19

		
	10.
	DEFAULT; FAILURE OF CONDITION.    20

		
	10.1
	Purchaser Default.    20

		
	10.2
	Seller Default.    20

		
	10.3
	Failure of Condition.    21

		
	11.
	MISCELLANEOUS.    21

		
	11.1
	Entire Agreement.    21

		
	11.2
	Severability; Construction.    21

		
	11.3
	Applicable Law.    21

		
	11.4
	Assignability.    22

		
	11.5
	Successors Bound.    22

		
	11.6
	Breach.    22

		
	11.7
	No Public Disclosure.    22

		
	11.8
	Captions.    22

		
	11.9
	Attorneys’ Fees.    22

	
			
	 
	iv
	 

TABLE OF CONTENTS
(continued)
Page

		
	11.10
	No Partnership.    23

		
	11.11
	Time of Essence.    23

		
	11.12
	Counterparts; Electronic or Facsimile Copies.    23

		
	11.13
	Recordation.    23

		
	11.14
	Proper Execution.    23

		
	11.15
	Tax Protest.    23

		
	11.16
	Survival and Limitation of Representations and Warranties; Seller’s Knowledge.    23

		
	11.17
	No Processing.    24

		
	11.18
	Calculation of Time Periods.    24

		
	11.19
	Section 1031 Exchange.    24

		
	11.20
	Limitation of Liability.    24

		
	11.21
	Jury Waiver.    24

		
	11.22
	Prohibited Persons and Transactions.    25

	
			
	 
	v
	 

LIST OF EXHIBITS
		
	Exhibit 1.1.1
	Legal Description

		
	Exhibit 1.1.3
	Inventory of Personal Property

		
	Exhibit 1.1.6
	Schedule of Tenants (Rent Roll)

		
	Exhibit 3.1
	Property Documents (Due Diligence)

		
	Exhibit 3.3
	Schedule of Service Contracts

		
	Exhibit 9.2.1
	Form of Special Warranty Deed

		
	Exhibit 9.2.2
	Form of Bill of Sale and Assignment and Assumption Agreement

		
	Exhibit 9.2.6
	Form of FIRPTA Affidavit

		
	Exhibit 9.2.7
	Form of Tenant Notice Letter

List of Exhibits
Page 1

LIST OF CERTAIN DEFINED TERMS
	
		
	PURCHASER:
	RRE Opportunity OP II, LP, a Delaware limited partnership

	SELLER:
	TRM – Meredith Park Corp., an Illinois corporation

	PURCHASE PRICE:
	$65,200,000

	DEPOSIT:
	$2,500,000

	APPROVAL DATE:
	December 4, 2015

	TITLE NOTICE DATE:
	December 9, 2015

	RESPONSE DATE:
	As defined in Section 3.2, two (2) business days of Seller’s receipt of the Title Notice from Purchaser

	CURE DATE:
	As defined in Section 3.2, two (2) business days of the Response Date, but in no event later than the Approval Date

	CLOSING DATE:
	December 18, 2015

	TITLE COMPANY:
	Stewart Title Guaranty Company

	BROKER:
	ARA Newmark

	PROPERTY MANAGER:
	Lincoln Apartment Management Limited Partnership

Defined Terms
Page 1

PURCHASE AND SALE AGREEMENT
THIS PURCHASE AND SALE AGREEMENT (this “Agreement”), dated as of the Effective Date, is made by and between Seller and Purchaser.
A G R E E M E N T S:
NOW, THEREFORE, in consideration of the covenants, promises and undertakings set forth herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser agree as follows:
1.THE PROPERTY
1.1    Description.  Subject to the terms and conditions of this Agreement, and for the consideration herein set forth, Seller agrees to sell and transfer, and Purchaser agrees to purchase and acquire, that certain 216-unit multi-family residential project commonly known as Canterwood Apartments, located in Boulder, Colorado, consisting of all of the following (collectively, the “Property”):
1.1.1    That certain land (the “Land”) more specifically described in Exhibit 1.1.1 attached hereto; 
1.1.2    The buildings, parking areas, improvements, installations, structures and fixtures now situated on the Land (the “Improvements”) (the Land and the Improvements are sometimes collectively referred to herein as the “Real Property”);
1.1.3    All furniture, personal property, machinery, apparatus, supplies and equipment owned by Seller and currently used in the operation, repair and maintenance of the Land and Improvements and situated thereon (collectively, the “Personal Property”), and generally described on Exhibit 1.1.3 attached hereto.  The Personal Property to be conveyed is subject to depletions, replacements and additions in the ordinary course of Seller’s business;
1.1.4    Seller’s assignable and transferrable right, title and interest in and to all rights, privileges, easements, hereditaments, and appurtenances belonging to or inuring to the benefit of Seller and pertaining to the Land or used by Seller in connection with the operation of the Real Property, if any;
1.1.5    All right, title and interest of Seller in and to any streets, alleys or rights-of-way (whether open, closed or proposed), within or adjacent to the Land;

1.1.6    All of Seller’s right, title and interest as landlord or lessor in, to and under all leases or occupancy agreements, including those in effect on the Effective Date and described on Exhibit 1.1.6 attached hereto (the “Rent Roll”), and any new leases entered into pursuant to Section 4.4, which as of the Closing (as hereinafter defined) affect all or any portion of the Land or Improvements (collectively, the “Leases”), and any security deposits actually held by Seller or Property Manager with respect to any such Leases;
1.1.7    All right, title and interest of Seller in, to and under the Designated Service Contracts (as hereinafter defined);
1.1.8    All right, title and interest of Seller in and to the common name of the Property and all signs, logos, trade names, trademarks, symbols or styles relating to the Real Property owned by Seller (specifically including the name “Canterwood” but excluding the name “Capri”) and all other intangible property now owned or hereafter acquired by Seller in connection with the Real Property or the Personal Property, including without limitation all brochures, manuals, lists of prospective tenants, advertising and marketing materials (including, all social media accounts and logo, photo, video and e-brochure files), assignable telephone and facsimile numbers, plans, specifications, drawings, reports, studies and any and all web addresses, domain names and URLs relating to the Real Property (collectively, the “Intangible Personal Property”);
1.1.9    All right, title and interest of Seller in and to all unexpired assignable warranties, guaranties and sureties relating to the Real Property or the Personal Property (the “Warranties”); and
1.1.10    All right, title and interest of Seller in and to all assignable governmental permits, licenses, certificates and authorizations relating to the use, occupancy or operation of the Real Property or the Personal Property (the “Permits”).
1.2    “As‐Is” Purchase.  Except as expressly set forth in this Agreement, the Property is being sold in an “AS IS, WHERE IS” condition and “WITH ALL FAULTS” as of the Effective Date and of Closing.  Except as expressly set forth in this Agreement or the Deed and Bill of Sale as referenced in Section 9.2, no representations or warranties have been made or are made and no responsibility has been or is assumed by Seller or by any partner, officer, person, firm, agent, attorney or representative acting or purporting to act on behalf of Seller as to (i) the condition or state of repair of the Property; (ii) the compliance or non-compliance of the Property with any applicable laws, regulations or ordinances (including, without limitation, any applicable zoning, building or development codes); (iii) the value, expense of operation, or income potential of the Property; (iv) any other fact or condition which has or might affect the Property or the condition, state of repair, compliance, value, expense of operation or income potential of the Property or any portion thereof; (v) whether the Property contains asbestos or harmful or toxic substances or 

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pertaining to the extent, location or nature of same; or (vi) any other matter related in any way to the Property.  The parties agree that all understandings and agreements heretofore made between them or their respective agents or representatives are merged in this Agreement and the Exhibits hereto annexed, which alone fully and completely express their agreement, and that this Agreement has been entered into with the parties satisfied with the opportunity afforded for full investigation, neither party relying upon any statement or representation by the other unless such statement or representation is specifically embodied in this Agreement or the Exhibits annexed hereto.
With the exception of any Claims (as defined below) resulting from the material inaccuracy or material breach of any representations or warranties expressly made by Seller in this Agreement, Purchaser waives its right to recover from, and forever releases and discharges Seller, Seller’s affiliates, Seller’s investment advisor and manager, the partners, trustees, shareholders, directors, officers, attorneys, employees and agents of each of them, and their respective heirs, successors, personal representatives and assigns (collectively, the “Releasees”) from any and all demands, claims (including, without limitation, causes of action in tort), legal or administrative proceedings, losses, liabilities, damages, penalties, fines, liens, judgments, costs or expenses whatsoever (including, without limitation, attorneys’ fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen (collectively, “Claims”), that may arise on account of or in any way be connected with the Property, the physical condition thereof, or any law or regulation applicable thereto (including, without limitation, claims under the Clean Air Act (42 U.S.C. 7401, et seq.), as amended, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601, et seq.), the Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901, et seq.), as amended, the Clean Water Act (33 U.S.C. Section 1251, et seq.), as amended, the Safe Drinking Water Act (49 U.S.C. Section 1801, et seq.), as amended, the Hazardous Materials Transportation Act (49 U.S.C. Section 1801, et seq.), as amended, and the Toxic Substances Control Act (15 U.S.C. Section 2601, et seq.).  Without limiting the foregoing, with the exception of any Claims resulting from the material inaccuracy or material breach of any representations or warranties expressly made by Seller in this Agreement or the Deed and Bill of Sale, Purchaser, upon Closing, shall be deemed to have waived, relinquished and released Seller and all other Releasees from any and all Claims, matters arising out of latent or patent defects or physical conditions, violations of applicable laws (including, without limitation, any environmental laws) and any and all other acts, omissions, events, circumstances or matters affecting the Property.  As part of the provisions of this Section 1.2, but not as a limitation thereon, Purchaser hereby agrees, represents and warrants that the matters released herein are not limited to matters which are known or disclosed, and Purchaser hereby waives any and all rights and benefits which it now has, or in the future may have conferred upon it, by virtue of the provisions of federal, state or local law, rules and regulations.  Without limiting Seller’s post-Closing obligations under Section 11.16, Purchaser agrees that should any cleanup, remediation or removal of hazardous substances 

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or other environmental conditions on or about the Property be required after the date of Closing, such clean-up, removal or remediation shall not be the responsibility of Seller.
1.3    Agreement to Convey.  Seller agrees to convey, and Purchaser agrees to accept, title to the Land and Improvements by Deed (as hereinafter defined) in the condition described in Section 3.4, and title to the Personal Property, the Leases, the Intangible Personal Property, the Warranties and the Permits by the Bill of Sale (as hereinafter defined).
1.4    Condominium Conversion.  Purchaser hereby acknowledges and agrees that, except as expressly set forth in this Agreement, Seller has made no representations or warranties whatsoever concerning the Property or the ability to convert the Property to condominiums, and that Purchaser has solely relied on its own due diligence and investigation in deciding to purchase the Property pursuant to the terms and conditions of this Agreement.  Accordingly, Purchaser, for itself and its successors and assigns under this Agreement, hereby agrees to advance, indemnify, defend, and hold Seller and its respective parents, subsidiaries, affiliates, divisions, companies and partnerships, and their respective partners, members, shareholders, managers, officers, directors, insurers, contractors, subcontractors, sub-subcontractors, attorneys, agents, trustees, investors, employees, representatives and their respective transferees, assigns, heirs, executors and administrators (collectively, the “Indemnified Parties”) free and harmless from any losses, liabilities, lawsuits, obligations, responsibilities, duties, actions, rights of action, causes of action, cross-claims, injuries, damages, judgments, awards, settlements, claims, liens, construction costs, demands, remedies, costs and/or expenses, including attorneys’ fees and costs, of whatever kind, nature or description, in law or equity or otherwise, in contract, tort or otherwise, whether known or unknown, foreseeable or unforeseeable, suspected or unsuspected, fixed or contingent, liquidated or unliquidated, arising out of, relating to or in connection with, directly or indirectly, at any time, any action that may be taken by Purchaser to effect the conversion of the Property from the existing rental apartment complex into a condominium project (“Condominium Conversion”), including, without limitation, (i) the condition of the Property, and (ii) any construction, maintenance or other work done or performed on or about the Property during periods prior to and after the Closing insofar as such matters could give rise to claims incident to a Condominium Conversion (collectively, the “Indemnification Claims”).
2.    PRICE AND PAYMENT.
2.1    Purchase Price.  Purchaser agrees to pay the Purchase Price for the acquisition of the Property, subject to the terms of this Agreement.
2.2    Payment.  Payment of the Purchase Price is to be made in cash as follows:
2.2.1    Within one (1) business day after the Effective Date, Purchaser shall deliver the Deposit, as an earnest money deposit, to the Title Company.  If Purchaser timely delivers 

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the Termination Notice pursuant to Section 3.5 of this Agreement on or prior to the Approval Date, or timely elects to terminate this Agreement pursuant to Section 3.2.2, this Agreement shall automatically terminate, in which event the Deposit together with all interest accrued thereon shall be returned to Purchaser and, except for the Surviving Obligations (as hereinafter defined), Seller and Purchaser shall have no further obligations or liabilities to each other hereunder.
2.2.2    The Deposit will be placed with and held in escrow by the Title Company, in immediately available funds in an interest-bearing account at a mutually acceptable, federally-insured banking institution (the “Escrow Account”).  Any interest earned by the Deposit shall accrue, except as otherwise provided in this Agreement, for the benefit of Purchaser and be considered as part of the Deposit.  Except as otherwise provided in this Agreement, the Deposit will be applied to the Purchase Price at Closing.
2.2.3    Prior to or contemporaneous with the execution hereof by Purchaser and Seller, Purchaser has paid to Seller $100.00 (the “Independent Contract Consideration”), which amount Seller and Purchaser bargained for and agreed to as consideration for Seller’s execution and delivery of this Agreement.  The Independent Contract Consideration is non-refundable and in addition to any other payment or deposit required by this Agreement, and Seller shall retain the Independent Contract Consideration notwithstanding any other provision of this Agreement to the contrary.
2.2.4    At Closing, Purchaser shall deliver the balance of Purchase Price, subject to adjustment for the prorations as provided herein, to the Title Company for disbursement to Seller via wire transfer in immediately available funds.
2.3    Closing.  Payment of the Purchase Price and the closing hereunder (the “Closing”) will take place pursuant to an escrow closing on or before the Closing Date, provided that this Agreement does not terminate prior to such date.  Closing shall occur through an escrow with the Title Company.  Funds shall be deposited into and held by the Title Company in the Escrow Account by 11:00 a.m. local Colorado time.  Upon satisfaction or completion of all Closing conditions and deliveries, the parties shall direct the Title Company to immediately record and deliver the closing documents to the appropriate parties and make disbursements from the Escrow Account according to the closing statements executed by Seller and Purchaser.  Closing shall be performed on a “gap” basis (i.e., disbursement of the funds deposited by Purchaser shall occur immediately following receipt of all required escrow deposits by Title Company and authorization by the parties to close, rather than following recordation of the Deed).
3.    INSPECTIONS AND APPROVALS.
3.1    Inspections.

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3.1.5    Commencing on the Effective Date and continuing thereafter so long as this Agreement remains in full force and effect, Seller agrees to allow Purchaser and Purchaser’s engineers, architects, employees, agents and representatives (collectively, “Purchaser’s Agents”) reasonable access, during normal business hours, to the Property and to the records, if any, maintained for Seller by the Property Manager during normal business hours.  Such access shall be for the sole purpose of undertaking inspections and investigations of the Property as Purchaser deems desirable to evaluate the Property, including, without limitation, (i) reviewing Leases and contracts and any records relating thereto; (ii) reviewing records relating to operating expenses; and (iii) inspecting the physical condition of the Property and conducting non-intrusive physical or environmental inspections of the Property.  Purchaser shall not conduct or allow any invasive testing at the Property or any physically intrusive testing of, on or under the Property without first obtaining Seller’s written consent as to the timing and scope of work to be performed and entering into an access agreement in form and substance satisfactory to Seller.  To the extent Seller has not previously done so, it shall deliver or cause to be delivered to Purchaser all Leases and the items listed in Exhibit 3.1 attached hereto (collectively, the “Property Documents”) within three (3) business days after the Effective Date; provided, however, that Seller may make the Leases and the Lease files available to Purchaser at the Property for scanning in lieu of delivering the Leases to Purchaser.
3.1.6    Purchaser agrees that, in making any physical or environmental inspections of the Property, Purchaser and all of Purchaser’s Agents entering onto the Property shall carry not less than $2,000,000 commercial general liability insurance insuring all activity and conduct of Purchaser and such representatives while exercising such right of access and naming Seller, Capri Capital Partners, LLC, and the Property Manager as additional insureds.  Purchaser represents and warrants that it carries not less than $2,000,000 commercial general liability insurance with contractual liability endorsement which insures Purchaser’s indemnity obligations hereunder.  Seller confirms receipt and approval of Purchaser’s written evidence of insurance.
3.1.7    Purchaser agrees that in exercising its right of access hereunder, Purchaser will use and will cause Purchaser’s Agents to use their best efforts not to interfere with the activity of tenants or any persons occupying or providing service at the Property.  Purchaser shall, at least twenty-four (24) hours prior to inspection, give Seller written (which may include e-mailed) notice of its intention to conduct any inspections, so that Seller shall have an opportunity to have a representative present during any such inspection, and Seller expressly reserves the right to have such a representative present, including, but not limited to, any discussion with any tenants.  Purchaser agrees to cooperate with any reasonable request by Seller in connection with the timing of any such inspection.  If Purchaser elects not to proceed with its purchase of the Property, at Seller’s option, Purchaser shall supply Seller with copies of any third party tests, studies or inspections of the Property performed under this Section 3 (the “Third Party Reports”) solely in the event Seller reimburses Purchaser fifty percent (50%) of its costs related to the Third Party Reports and the applicable vendors agree to release such Third Party Reports.  The parties 

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acknowledge and agree that Purchaser’s delivery of the Third Party Reports shall not constitute a representation or warranty as to any of the information contained therein.  The foregoing agreement to deliver the Third Party Reports shall survive Closing or termination of this Agreement.
3.1.8    Unless Seller specifically and expressly otherwise agrees in writing, Purchaser agrees that (a) the results of all inspections, analyses, studies and similar reports relating to the Property prepared by or for Purchaser utilizing any information acquired in whole or in part through the exercise of Purchaser’s inspection rights; and (b) all information (the “Proprietary Information”) regarding the Property of whatsoever nature made available to Purchaser by Seller or Seller’s agents or representatives is confidential and shall not be disclosed to any other person except those assisting Purchaser with the transaction (including, without limitation, Purchaser’s prospective investors and lenders, Purchaser’s Agents and Purchaser’s accountants, consultants, attorneys and other advisors), and then only upon Purchaser making such persons aware of the confidentiality restriction (in which event Purchaser shall be responsible for such person’s breach of such confidentiality restrictions, as if such breach were committed by Purchaser).  Purchaser agrees not to use or allow to be used any such information for any purpose other than to determine whether to proceed with the contemplated purchase, or if Closing is consummated, in connection with the operation of the Property post-Closing.  Further, if the purchase and sale contemplated hereby fails to close for any reason whatsoever, Purchaser agrees to return to Seller, or cause to be returned to Seller, or, if hard copies were not provided to Purchaser, to destroy all Proprietary Information provided to Purchaser by Seller or Seller’s Agents.  Notwithstanding any other term of this Agreement, (i) Purchaser shall not be prohibited from making any disclosures to any governmental authority which Purchaser is required to make by law or order of a court or such governmental authority, and (ii) the provisions of this Section 3.1.4 shall survive Closing or the termination of this Agreement.
3.1.9    Except as otherwise provided in Section 3.1.7 below, Purchaser shall, at its sole cost and expense, promptly restore to substantially the same condition prior to such inspections any physical damage or alteration of the physical condition of the Property which results from any inspections conducted by or on behalf of Purchaser, reasonable wear and tear excepted.  All inspections shall be conducted at Purchaser’s sole cost and expense and in strict accordance with all requirements of applicable law.
3.1.10    Except as specifically set forth herein, Seller makes no representations or warranties as to the truth, accuracy, completeness, methodology of preparation or otherwise concerning any engineering or environmental reports or any other materials, data or other information supplied to Purchaser in connection with Purchaser’s inspection of the Property (e.g., that such materials are complete, accurate or the final version thereof).  It is the parties’ express understanding and agreement that any materials which Purchaser is allowed to review are provided only for Purchaser’s convenience in making its own examination and determination prior to the 

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Approval Date as to whether it wishes to purchase the Property, and in doing so, Purchaser shall rely exclusively on its own independent investigation and evaluation of every aspect of the Property and not on any materials supplied by Seller.  Purchaser expressly disclaims any intent to rely on any such materials provided to it by Seller in connection with its inspection and agrees that it shall rely solely on its own independently developed or verified information.
3.1.11    PURCHASER AGREES (WHICH AGREEMENT SHALL SURVIVE CLOSING OR TERMINATION OF THIS AGREEMENT) TO INDEMNIFY, DEFEND, AND HOLD SELLER, CAPRI CAPITAL PARTNERS, LLC, AND THE PROPERTY MANAGER FREE AND HARMLESS FROM ANY LOSS, INJURY, DAMAGE, CLAIM, LIEN, COST OR EXPENSE, INCLUDING REASONABLE ATTORNEYS’ FEES AND COSTS, ARISING OUT OF A BREACH OF THIS SECTION 3 BY PURCHASER IN CONNECTION WITH THE INSPECTION OF THE PROPERTY, OR OTHERWISE FROM THE EXERCISE BY PURCHASER OR PURCHASER’S AGENTS OF THE RIGHT OF ACCESS ON THE PROPERTY (COLLECTIVELY, “PURCHASER’S INDEMNITY OBLIGATIONS”).  PURCHASER HEREBY ACKNOWLEDGES AND AGREES THAT IN THE EVENT THAT PRIOR TO THE EFFECTIVE DATE PURSUANT TO THE TERMS OF THAT CERTAIN ACCESS AND DUE DILIGENCE AGREEMENT BETWEEN PURCHASER AND SELLER DATED AS OF NOVEMBER 10, 2015, PURCHASER, OR ANY OF ITS EMPLOYEES, AGENTS, CONTRACTORS, CONSULTANTS, OR OTHER REPRESENTATIVES, HAVE ENTERED ONTO THE PROPERTY TO INSPECT, TEST, SURVEY OR OTHERWISE EXAMINE THE PROPERTY, AND THE RECORDS RELATING THERETO, THE INDEMNITY SET FORTH IN THIS SECTION 3.1.7 OF THIS AGREEMENT SHALL APPLY RETROACTIVELY TO THE DATE OF SUCH INSPECTIONS, TESTING, SURVEYING, AND EXAMINATION.  NOTWITHSTANDING ANYTHING IN THIS SECTION 3.1.7 OR IN SECTION 3.1.5 TO THE CONTRARY, PURCHASER SHALL HAVE NO LIABILITY FOR (A) EXCEPT FOR THE EXACERBATION OF SUCH CONDITION, ANY RELEASE OF PRE-EXISTING HAZARDOUS SUBSTANCES ARISING FROM THE CONDUCT OF ANY INVESTIGATION OR TESTING OF THE PROPERTY, (B) ANY GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SELLER OR ANY AGENT, CONTRACTOR OR EMPLOYEE OF SELLER, OR (C) EXCEPT FOR THE EXACERBATION OF SUCH CONDITION, ANY PRE-EXISTING CONDITIONS ON OR ABOUT THE PROPERTY.  THIS SECTION 3.1.7 SHALL SURVIVE CLOSING OR THE TERMINATION OF THIS AGREEMENT.  
3.1.12    Purchaser shall keep the Property free from any liens arising out of any work performed, materials furnished or obligations incurred by or on behalf of Purchaser or Purchaser’s Agents with respect to any inspection or testing of the Property.  If any such lien at any time shall be filed, Purchaser shall cause the same to be discharged of record within fifteen (15) days thereafter by satisfying the same or, if Purchaser, in its discretion and in good faith determines 

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that such lien should be contested, by recording a bond.  Failure by Purchaser to discharge such lien shall be a material breach of this Agreement.
3.1.13    Purchaser understands that any financial statements and data, including, without limitation, gross rental income, operating expenses and cash flow statements, which may be made available by Seller to Purchaser, will be unaudited financial statements and data not prepared or reviewed by independent public accountants, and that except as expressly set forth in this Agreement, Seller makes no representation as to the accuracy or completeness thereof.
3.2    Title and Survey; Approval or Disapproval.  
3.2.1    Prior to or contemporaneously with execution of this Agreement Seller has caused to be delivered to Purchaser a commitment for title insurance on the Real Property, together with copies of all items shown as exceptions to title therein, issued by the Title Company (the “Title Commitment”), and Seller has provided to Purchaser prior to the Effective Date a copy of Seller’s existing survey of the Land.  Purchaser has ordered, at its expense, an update to such survey.  The updated survey obtained by Purchaser, shall constitute the “Survey” hereunder.  Purchaser shall have until the Title Notice Date to provide written notice to Seller of any matters shown by the Title Commitment or the Survey which are not satisfactory to Purchaser, which notice (the “Title Notice”) must specify the reason such matter(s) are not satisfactory (collectively, the “Title Objections”).  In the event Seller is unable or unwilling to eliminate or modify all of the Title Objections, Seller shall so notify Purchaser in writing within two (2) business days of receipt of the Title Notice (the “Response Date”), and Purchaser may (as its sole and exclusive remedy) terminate this Agreement by delivering written notice thereof to Seller not later than two (2) business days after the Response Date (the “Cure Date”).  Except for Voluntary Liens, Seller shall have no obligation whatsoever to expend or agree to expend any funds, to undertake or agree to undertake any obligations or otherwise to cure or agree to cure any Title Objections, and Seller shall not be deemed to have any obligation to cure unless Seller expressly undertakes such an obligation by a written notice to or written agreement with Purchaser given or entered into on or prior to the Closing Date and which recites that it is in response to the Title Notice.  Purchaser’s sole right with respect to any Title Objection shall be to elect on or before the Cure Date to terminate this Agreement (other than continuing obligations under Section 3.1.4 and 3.1.7 that expressly survive the Closing or termination of this Agreement, which are herein called the “Surviving Obligations”) and to receive a refund of the Deposit. All matters shown on the Title Commitment and/or Survey with respect to which Purchaser fails to give a Title Notice on or before the last date for so doing, or with respect to which a timely Title Notice is given but Seller fails to undertake an express obligation to cure as provided above, shall be deemed to be approved by Purchaser and shall be deemed a “Permitted Encumbrance” as provided in Section 3.4 hereof, subject, however, to Purchaser’s termination right provided above.  Notwithstanding anything to the contrary contained in this Agreement, Seller shall, on or prior to the Closing Date discharge or remove of record or cause to be paid, discharged 

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or removed of record at Seller’s sole cost and expense, all of the Voluntary Liens (as hereinafter defined) (including judgments and federal, state and municipal tax liens).  The term “Voluntary Liens” as used herein shall mean (i) delinquent taxes or assessments, (ii) any deed of trust, mortgage or other lien securing financing with respect to the Property or any part thereof, (iii) any lien, encumbrance or other matter affecting title to the Property or any monetary liens on or against the Property that was created, consented to or caused by Seller after the effective date of the initial Title Commitment without Purchaser’s written consent.
3.2.2    Notwithstanding anything to the contrary herein, on or before the Cure Date, Purchaser shall advise Seller in writing that it has elected to either approve or disapprove all title and survey matters with respect to the Property.  In the event that Purchaser has timely elected in writing to disapprove such title and survey, the Agreement shall terminate and Seller shall direct the Title Company to promptly return the Deposit to Purchaser and neither party shall have any further liability hereunder except for the Surviving Obligations.  However, if Purchaser has (i) timely elected in writing to approve the title and survey matters with respect to the Property or (ii) has failed to timely give any written notice to Seller as to Purchaser’s approval or disapproval of such title and survey matters, Purchaser shall be deemed to have elected to approve such title and survey matters, and in either such event Purchaser shall have waived its right to terminate this Agreement with respect to title and survey matters relating to the Property (except as otherwise specifically provided in Section 3.2.1) and the entire Deposit shall be deemed non-refundable except as otherwise specifically provided in this Agreement.
3.3    Contracts.  On or before the Approval Date, Purchaser shall notify Seller in writing if Purchaser elects not to assume at Closing any of the service, maintenance, supply or other contracts relating to the operation of the Property which are identified on Exhibit 3.3 attached hereto (collectively, the “Service Contracts”), provided, however, in the event that Purchaser has not received copies of all of the Service Contracts as of the Approval Date, Purchaser shall have one (1) business day following receipt of any of the missing Service Contracts to elect by written notice to Seller to not assume at Closing any such Service Contracts.  Following the Approval Date, Seller shall use commercially reasonable efforts to negotiate the termination of any disapproved Service Contracts with the other parties to such Service Contracts such that all disapproved Service Contracts will terminate on the Closing Date; provided, if by the terms of the disapproved Service Contract Seller has no right to terminate same on or prior to Closing, or if any fee or other compensation is due thereunder as a result of such termination, Purchaser shall be required at Closing to assume all obligations thereunder from the Closing Date until the effective date of the termination and to assume the obligation to pay or to reimburse Seller for the payment of the termination charge.  Purchaser shall have no obligation to assume any Service Contracts that are not assignable without the applicable other party’s consent where such consent has not been obtained prior to the Closing Date.  Purchaser shall be responsible to pay the costs/fees under the Service Contracts which are terminated at Purchaser’s election pursuant to this Section 3.3 for the stub period from and after 

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Closing to the termination date of any such Senior Contracts, during which period Purchaser shall be solely responsible to pay all such costs until termination of such Service Contracts. All Service Contracts which Purchaser elects to assume, or which Purchaser is required to assume pursuant to this Section 3.3, are collectively referred to herein as the “Designated Service Contracts.”  Notwithstanding anything contained in this Section 3.3 to the contrary, Seller shall be obligated, at no cost or expense to Purchaser, to terminate the property management agreement with Property Manager and any asset management or other agreement with Capri Capital Partners, LLC or its affiliates effective as of the Closing Date.
3.4    Permitted Encumbrances.  Unless Purchaser terminates this Agreement pursuant to Sections 3.2 or 3.5 hereof following its opportunity fully to inspect the Property, the state of title thereto and all other matters relating to the Property, including its feasibility for Purchaser’s intended use and its suitability as an investment, Purchaser shall be deemed to have approved and to have agreed to purchase the Property subject to the following:
3.4.1    All exceptions to title shown in the Title Commitment or matters shown on the Survey which Purchaser has approved or is deemed to have approved pursuant to Section 3.2 hereof;
3.4.2    The lien of non‐delinquent real and personal property taxes and assessments;
3.4.3    Rights of possession of the tenants, as residential tenants only, under the Leases; and
3.4.4    Matters created by or resulting from Purchaser’s actions.
All of the foregoing are referred to herein collectively as “Permitted Encumbrances.”  Notwithstanding the foregoing, the Permitted Encumbrances shall not include any mortgage or deed of trust that was granted by Seller and that encumbers the Land.
3.5    Purchaser’s Right to Terminate.  Purchaser may terminate this Agreement at any time during the period ending at 5:00 p.m. (Colorado Time) on the Approval Date (the “Feasibility Period”) for any or no reason.  If Purchaser determines, in its sole discretion, not to proceed with the purchase of the Property, Purchaser shall have the right by giving Seller written notice (the “Termination Notice”) on or before the Approval Date to terminate its obligation to purchase the Property.  If the Termination Notice is timely given, Seller shall direct the Title Company to promptly return the Deposit to Purchaser and neither party shall have any further liability hereunder except for the Surviving Obligations; provided, however, if Purchaser terminates this Agreement after the Cure Period as a result of a title or survey matter, the Deposit shall be paid to Seller. If the Termination Notice is not timely given, Purchaser shall have no further right to terminate 

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this Agreement except as otherwise provided under Section 3.2, Section 7 and Section 10.2 hereof in this Agreement.
3.6    Delivery of Title Policy at Closing.  As a condition to Purchaser’s obligation to close, the Title Company shall deliver to Purchaser at Closing  an ALTA Owner’s Policy of Title Insurance (the “Title Policy”) issued by the Title Company as of the date and time of the recording of the Deed, in the amount of the Purchase Price, insuring Purchaser as owner of fee simple title to the Property, and subject only to the Permitted Encumbrances.  Seller shall execute and deliver to the Title Company at Closing such affidavits and agreements (in form reasonably acceptable to Seller) to facilitate the issuance of the Title Policy (but not additional matters required for any endorsements required by Purchaser, except in connection with any title or survey objection which Seller elects or is required to cure pursuant to the terms hereof).  The Title Policy may be delivered after the Closing if at the Closing the Title Company issues a currently effective, duly-executed “marked-up” Title Commitment and irrevocably commits in writing to issue the Title Policy in the form of the “marked-up” Title Commitment promptly after the Closing Date.  Purchaser may elect to obtain additional coverage or endorsements to the Title Policy at Purchaser’s sole cost and expense but obtaining such additional coverage or endorsements shall not be a condition precedent to Purchaser’s Closing obligations under this Agreement.
4.    SELLER’S COVENANTS FOR PERIOD PRIOR TO CLOSING.  Until Closing, Seller or Seller’s agent shall:
4.1    Insurance.  Keep the Property insured under its current or comparable policies against fire and other hazards covered by extended coverage endorsement and commercial general liability insurance against claims for bodily injury, death and property damage occurring in, on or about the Property.
4.2    Operation.  Operate, repair, manage and maintain the Property in good order and repair substantially in accordance with Seller’s current practices with respect to the Property, normal wear and tear excepted, and perform when due all of its obligations with respect to the Property, including, without limitation, its obligations under the Leases, the Service Contracts, the Permitted Encumbrances, any mortgages or deeds of trust affecting the Property and applicable laws.  
4.3    New Contracts.  Following the Approval Date, not execute any amendments to existing Service Contracts and enter into only those third-party service contracts which are necessary to carry out its obligations under Section 4.2 and which shall be cancelable on thirty (30) days written notice without penalty.  If Seller enters into any such contract, it shall promptly provide written notice thereof to Purchaser and unless Purchaser, within three (3) business days thereafter, 

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notifies Seller in writing of its intention to assume such contract, it shall be treated as a Designated Service Contract under Section 3.3 hereof.  
4.4    New Leases.  Seller shall use commercially reasonable efforts to enter into new residential Leases and grant renewals and extensions of existing residential Leases, provided that the same are done in the ordinary course of business at market rents and for a term of one (1) year or less.  In addition, following the Approval Date, Seller may continue to execute new leases or amend, terminate or accept the surrender of any existing tenancies or approve any subleases without the prior consent of Purchaser in accordance with Seller’s past practices.
4.5    Rent-Ready.  At Closing all rental units vacant for more than seven (7) days prior to Closing shall be delivered to Purchaser in “rent-ready” condition in accordance with Seller’s normal standard operating procedure.  Notwithstanding the foregoing, in lieu of delivering any such vacant unit in rent-ready condition, Seller may provide Purchaser with a $500.00 credit per such vacant unit.
4.6    Material Events.  Seller shall promptly inform Purchaser in writing of any breach or default under the Leases or Service Contracts or any event that materially or adversely affects the ownership, use, occupancy, operation or maintenance of the Property, including any Violations (as hereinafter defined) or any Litigation (as hereinafter defined).
5.    REPRESENTATIONS AND WARRANTIES.
5.1    By Seller.  Seller represents and warrants to Purchaser as follows as of the Effective Date and at Closing as of the Closing Date:
5.1.1    Seller is duly organized and validly existing under the laws of the State in which it was organized and is authorized to do business in the State in which the Land is located.  Seller owns the Property and has duly authorized the execution and performance of this Agreement and the transactions contemplated hereunder, and such execution and performance will not violate any term of its articles of incorporation, bylaws or other organizational documents.  No third party approval or consent is required for Seller to enter into this Agreement or to consummate the transactions contemplated hereby.  This Agreement and all documents required hereby to be executed by Seller are and shall be valid, legally binding obligations of and enforceable against Seller in accordance with their terms.
5.1.2    Performance of this Agreement will not result in any breach of, or constitute any default under, or result in the imposition of any lien or encumbrance upon the Property under, any agreement to which Seller is a party.

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5.1.3    There is no existing or pending litigation with respect to the Property nor, to the best of Seller’s knowledge, have any such actions, suits, proceedings or claims been threatened or asserted, which could have an adverse effect on the Property or Seller’s ability to consummate the transactions contemplated hereby (collectively, “Litigation”).  No petition in bankruptcy (voluntary or otherwise), assignment for the benefit of creditors, or petition seeking reorganization or arrangement or other action under federal or state bankruptcy laws is pending against or contemplated by Seller.
5.1.4    Seller has not received any written notice from any governmental authority of a violation of any governmental laws, regulations, codes or other requirements (including, without limitation, environmental, zoning, building, fire, health and anti-discrimination laws, regulations and codes) on the Property (collectively, “Violations”), which has not been remedied.
5.1.5    Seller has no actual knowledge of, nor has Seller received notice from any governmental authority regarding, any change to the zoning classification, any condemnation proceedings or proceedings to widen or realign any street or highway adjacent to the Property.
5.1.6    The list of Service Contracts attached hereto as Exhibit 3.3 is true, correct and complete in all material respects as of the Effective Date, which shall be updated by Seller prior to Closing, if necessary, to include new Service Contracts and delete terminated Service Contracts.  To Seller’s knowledge, true, correct and complete copies of all Service Contracts were provided to Purchaser in accordance with this Agreement and all Service Contracts are in full force and effect and free from material default.  To Seller's knowledge, there are no service or maintenance contracts, warranties, guarantees, listing agreements, parking agreements or bonds (whether oral or written) which will be obligations of Purchaser or the Property, other than the Service Contracts.
5.1.7    Seller is not a “foreign person” within the meaning of Sections 1445 and 7701 the Internal Revenue Code of 1986, as amended (hereinafter, the “Code”).
5.1.8    Except for those tenants in possession of the Improvements under written residential leases for space in the Improvements, as shown in the Rent Roll attached hereto as Exhibit 1.1.6, there are no other tenants in possession of, or claiming any possession to, any portion of the Improvements.  To the best of Seller’s knowledge, the Rent Roll contains a complete and correct list of all Leases as of the Effective Date, which shall be updated by Seller prior to Closing.   To Seller’s knowledge, true, correct and complete copies of all Leases listed on the Rent Roll have been provided or made available to Purchaser and all such Leases are in full force and effect and free from material default.
5.1.9    Seller has no employees at the Property.

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5.1.10    Seller has not granted, and to Seller’s actual knowledge there exist no, recorded or unrecorded options to purchase or rights of first refusal or first offer on the Property or any portion thereof.
5.1.11    Seller is (a) not an “employee benefit plan” (within the meaning of Section 3(3) of the Employment Retirement Income Security Act of 1974, as amended (“ERISA”)), which is subject to ERISA, (b)  is a “government plan” under Section 3(32) of ERISA, and state pension statutes governing Seller do not prohibit or otherwise restrict the sale of the Property,  (c) is not a “plan” (within the meaning of Section 4975(e)(1) of the Code, as amended), which is subject to Section 4975 of the Code, as amended and the sale of the Property is not a non-exempt prohibited transaction under such section and (d) is not an entity whose underlying assets include “plan assets” by reason of a plan’s investment in such entity.
5.1.12    To the best of Seller’s knowledge, the operating statements delivered to Purchaser pursuant to Section 3.1 present fairly the financial condition of the Property at such date and the result of its operations for the periods described therein.
5.1.13    To the best of Seller’s knowledge, Exhibit 1.1.3 constitutes a list of all Personal Property as of the Effective Date.  The Personal Property is not subject to any liens or encumbrances (except for any liens or encumbrances which will be satisfied at Closing), and Seller owns and has good title to all Personal Property.  
5.2    By Purchaser.  Purchaser represents and warrants to Seller as follows:
5.2.5    Purchaser is duly organized, validly existing and in good standing under the laws of the State in which it was organized, is or will be prior to Closing authorized to do business in the State in which the Land is located, has duly authorized the execution and performance of this Agreement, and such execution and performance will not violate any term of its organizational documents.
5.2.6    No petition in bankruptcy (voluntary or otherwise), assignment for the benefit of creditors, or petition seeking reorganization or arrangement or other action under federal or state bankruptcy laws is pending against or contemplated by Purchaser.
5.2.7    Purchaser acknowledges that, by the Closing Date, Purchaser will have had sufficient opportunity to inspect the Property fully and completely at its expense in order to ascertain to its satisfaction the extent to which the Property complies with applicable zoning, building, environmental, health and safety and all other laws, codes and regulations.
5.2.8    Purchaser acknowledges that, by the Closing Date, Purchaser will have had sufficient opportunity to review the Leases, Service Contracts, expenses and other matters 

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relating to the Property in order to determine, based upon its own investigations, inspections, tests and studies and Seller’s representations and warranties set forth in this Agreement, whether to purchase the Property and to assume Seller’s obligations under the Leases, contracts and otherwise with respect to the Property.
5.2.9    Purchaser will not use the assets of an employee benefit plan as defined in Section 3(3) of ERISA and covered under Title I, Part 4 of ERISA or Section 4975 of the Code, as amended, in the performance or discharge of its obligations hereunder, including the acquisition of the Property.  Purchaser will not assign its interest hereunder to any person or entity which does not expressly make this covenant and warranty for the benefit of Seller.
5.3    Mutual.  Each of Seller and Purchaser represents to the other that it has had no dealings, negotiations, or consultations with any broker, representative, employee, agent or other intermediary in connection with the Agreement or the sale of the Property, except for Broker, who will be paid by Seller upon the Closing of the transaction contemplated hereby and not otherwise, pursuant to a separate written agreement between Seller and Broker.  Said commission shall in no event be earned, due or payable unless and until the transaction contemplated hereby is closed and fully consummated strictly in accordance with the terms and conditions of this Agreement and Seller has actually received the Purchase Price in immediately available funds.  Seller and Purchaser agree that each will indemnify, defend and hold the other free and harmless from the claims of any other broker(s), representative(s), employee(s), agent(s) or other intermediary(ies) claiming to have represented Seller or Purchaser, respectively, or otherwise to be entitled to compensation in connection with this Agreement or in connection with the sale of the Property.  The terms and provisions of this paragraph shall survive Closing hereunder.
6.    COSTS AND PRORATIONS.
6.1    Purchaser’s Costs.  Purchaser shall pay the following costs of closing this transaction:
6.1.10    The fees and disbursements of its counsel, inspecting architect and engineer and any other consultants engaged by Purchaser, if any;
6.1.11    Except as otherwise provided by Section 6.2.3 below, the cost of any extended coverage or special endorsements to the Title Policy, including, any additional premium charge(s) for endorsements and/or deletion(s) of exception items and any cancellation charge(s) imposed by the Title Company in the event the Title Policy is not issued, unless caused by default of Seller hereunder;
6.1.12    Any and all recording fees for the Deed and any loan related document related to financing obtained by Purchaser;

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6.1.13    One half (1/2) of any and all closing escrow fees;
6.1.14    Any and all real estate transfer, stamp or documentary taxes;
6.1.15    Any and all sales or use taxes relating to the transfer of personal property to Purchaser;
6.1.16    Any other expense(s) incurred by Purchaser or its representative(s) in inspecting or evaluating the Property or closing this transaction; and
6.1.17    All costs relating to any update, recertification or changes to the Survey.
6.2    Seller’s Costs.  Seller shall pay the following costs of closing this transaction:
6.2.1    The fees and disbursements of Seller’s counsel;
6.2.2    One half (1/2) of any and all closing escrow fees;
6.2.3    the basic premium for the Title Policy for coverage in the amount of the Purchase Price and the premium for any endorsements or modifications to the Title Policy that Seller has agreed to pay in order to cure any title defects,
6.2.4    the costs of curing all title objections for which Seller is responsible under this Agreement; and
6.2.5    the costs of recording all mortgage and deed of trust cancellations.
6.3    Prorations.  The following shall be prorated as of the Closing Date and be adjusted against the Purchase Price due at Closing: (a) Rents and any other amounts actually collected from tenants and other persons using or occupying the Property as of the Closing Date; (b) personal property taxes, installment payments of special assessment liens, sewer charges, utility charges (utility charges shall be prorated based on the last reading of meters prior to Closing performed at Seller’s request, if possible) and normally prorated operating expenses actually billed or paid as of the Closing Date; (c) amounts owed by Seller or paid under the Designated Service Contracts as of the Closing Date, including, without limitation, any amounts paid by any service provider under the Designated Service Contracts prior to Closing; provided, however, that Purchaser hereby assumes all payments coming due under the Designated Service Contracts from and after the Closing Date (provided that Purchaser shall receive a credit for the portion of any such payment that relates to the period prior to the Closing Date), including, but not limited to, the stub period until the term of the Designated Service Contracts expire; and (d) leasing commissions, finder’s fees and locator fees shall be paid in full by Seller for each lease executed by Seller prior to the Closing Date; 

17

provided, however, that Purchaser hereby assumes all such fees and commissions for each lease executed from and after the Closing Date.  Within ninety (90) days after the Closing (the “Reproration Period”), Purchaser and Seller will make a further adjustment for such rents, taxes or charges which may have accrued or been incurred prior to the Closing Date, but not billed or paid at that date; such obligations shall survive the Closing.
6.4    Taxes.  General real estate taxes and special assessments relating to the Property payable during the year in which Closing occurs shall be prorated as of the Closing Date.  If Closing shall occur before the actual taxes and special assessments payable during such year are known, the apportionment of taxes shall be upon the basis of the taxes for the Property payable during the immediately preceding year, provided that, if the taxes and special assessments payable during the year in which Closing occurs are thereafter determined to be more or less than the taxes payable during the preceding year (after any appeal of the assessed valuation thereof is concluded), Seller and Purchaser promptly (but no later than March 31, 2016, except in the case of an ongoing tax protest) shall adjust the proration of such taxes and special assessments, and Seller or Purchaser, as the case may be, shall pay to the other any amount required as a result of such adjustment and this covenant shall not merge with the Deed delivered hereunder but shall survive the Closing. 
6.5    In General.  Any other costs or charges of closing this transaction not specifically mentioned in this Agreement shall be paid and adjusted in accordance with local custom in the County in which the Land is located.  All prorations shall be made on a 365-day calendar year basis, based on the actual number of days in the applicable month.
6.6    Purpose and Intent.  Except as expressly provided herein, the purpose and intent as to the provisions of prorations and apportionments set forth in this Section 6 and elsewhere in this Agreement is that Seller shall bear all expenses of ownership and operation of the Property and shall receive all income therefrom accruing through midnight at the end of the day preceding the Closing Date and Purchaser shall bear all such expenses and receive all such income accruing thereafter.
6.7    Settlement Statements. Seller shall deliver to Purchaser no later than two (2) business days prior to the Closing Date invoices or bills for all prorated expenses and other reasonable backup information.  Seller and Purchaser shall use commercially reasonable efforts to cause the Title Company to prepare a draft settlement statements containing the prorations described above and deliver the same to the parties no later than 12:00 p.m. (Denver time) one (1) business day prior to the Closing Date.  Prior to Closing, Seller and Purchaser shall sign off on the prorations and other information set forth in the settlement statements.
7.    DAMAGE, DESTRUCTION OR CONDEMNATION.

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7.1    Material Event.  If, prior to Closing, the number of parking spaces on the Property are reduced by fifteen percent (15%) or more, the Improvements are damaged and the cost of repair exceeds $500,000.00 (as determined by Seller and its contractors in consultation with Purchaser) or all access to the Property is rendered completely unusable, or is destroyed or taken under power of eminent domain and the cost or repair exceeds $500,000.00 (as determined by Seller and its contractors in consultation with Purchaser) (a “Material Event”), Purchaser may elect to terminate this Agreement by giving written notice of its election to Seller within seven (7) days after receiving  written notice of such destruction or taking from Seller of such Material Event, in which case, that Purchaser timely terminates this Agreement, the Title Company shall promptly return the Deposit to Purchaser and the parties shall have no further liability hereunder except for any Surviving Obligations.  If Purchaser does not give such written termination notice within such seven (7) day period, this transaction shall be consummated on the Closing Date and at the Purchase Price provided for in Section 2, and Seller will assign to Purchaser the physical damage proceeds of any insurance policy(ies) payable to Seller, or Seller’s portion of any condemnation award, in both cases, up to the amount of the Purchase Price, and, if an insured casualty, pay to Purchaser as a credit to the Purchase Price at Closing the amount of any deductible but not to exceed the amount of the loss.
7.2    Immaterial Event.  If, prior to Closing, the Property is subject to a casualty or a condemnation event that is not a Material Event, Purchaser shall close this transaction on the date and at the Purchase Price agreed upon in Section 2, and Seller will assign to Purchaser the physical damage proceeds of any insurance policies payable to Seller, or Seller’s rights to any portion of any condemnation award (or reduce the Purchase Price by the amount of such proceeds or award), in both cases, up to the amount of the Purchase Price and, if an insured casualty, pay to Purchaser as a credit to the Purchase Price at Closing the amount of any deductible but not to exceed the amount of the loss.
7.3    Termination and Return of Deposit.  If Purchaser elects to terminate this Agreement pursuant to this Section 7, Seller shall promptly direct the Title Company to return the Deposit to Purchaser, and neither party shall have any further liability hereunder except for the Surviving Obligations.
8.    NOTICES.  Any notice required or permitted to be given hereunder shall be deemed to be given by either party or their respective counsel when hand delivered or one (1) business day after pickup by UPS, Airborne, Federal Express, or similar overnight express service, or by facsimile or email (only as provided below) in either case addressed to the parties at their respective addresses referenced below:

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	If to Seller:
	TRM – Meredith Park Corp.
c/o Capri Capital Partners, LLC
875 N. Michigan Avenue, Suite 3430
Chicago, Illinois 60611
Attention:    Jason Lewis
Telephone:    (312) 676-4152
EMAIL:    jlewis@capricapital.com

	With a copy to:
	Holland & Knight LLP
131 South Dearborn Street, 30th Floor
Chicago, Illinois 60603
Attention:    Bruce D. Loring
      James T. Mayer
Telephone:    (312) 715-5855
      (312) 715-5841
Email:      bruce.loring@hklaw.com
      james.mayer@hklaw.com

	If to Purchaser:
	RRE Opportunity OP II, LP
c/o Resource Real Estate, Inc.
1845 Walnut Street, 18th Floor
Philadelphia, Pennsylvania 19103
Attention:  Pamela Arms
Telephone:     (215) 640-6607
      (215) 761-0491
Email:      parms@resourcerei.com

	With a copy to:
	Resource Real Estate, Inc.
1845 Walnut Street, 18th Floor
Philadelphia, Pennsylvania 19103
Attention:  Aldie Jennings Loubier, Esq.
Telephone:     (215) 209-4424
      (215) 553-8426
Email:      aloubier@resourcerei.com

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	If to Title Company:
	Stewart Title Guaranty Company
Stewart Commercial Services
10 S. Riverside Plaza, Suite 1450
Chicago, Illinois 60606
Attention:   Christopher F. Cantafio
   Senior Business Development Officer
Direct:   (312) 857-2001  
Cell:   (847) 899-1655
Fax:    (312) 849-4410
E-mail    CCantafi@Stewart.com

or in each case to such other address as either party may from time to time designate by giving notice in writing to the other party.  Except for facsimile or email notices between 9:00 a.m. and 5:00 p.m. Central time on a business day that are followed up by an overnight courier delivery, telephone and facsimile numbers and email addresses are for informational purposes only.  Effective notice will be deemed given only as provided above.
9.    CLOSING AND ESCROW.
9.1    Escrow Instructions; Closing Date.  Upon execution of this Agreement, the parties shall deliver an executed counterpart of this Agreement to the Title Company to serve as the instructions to the Title Company as the escrow holder for consummation of the transaction contemplated herein.  Seller and Purchaser agree to execute such additional and supplementary escrow instructions as may be appropriate to enable the Title Company to comply with the terms of this Agreement; provided, however that in the event of any conflict between the provisions of this Agreement and any supplementary escrow instructions, the terms of the Agreement shall prevail.  
9.2    Seller’s Deliveries.  Seller shall deliver to the Title Company one (1) day prior to Closing or by making available at the Property, as appropriate for the items in Sections 9.2.3, 9.2.4 and 9.2.5 below, the following original documents, each executed and, if required, acknowledged:
9.2.1    A Special Warranty Deed to the Property, in the form attached hereto as Exhibit 9.2.1, conveying to Purchaser all of Seller’s right, title and interest in and to the Real Property, subject only to the Permitted Encumbrances and any other matters subsequently approved in writing by Purchaser or Purchaser’s counsel (the “Deed”).
9.2.2    A Bill of Sale and Assignment and Assumption Agreement in the form attached hereto as Exhibit 9.2.2 (the “Bill of Sale”).
9.2.3    (i) The Leases described in Section 1.1.6 which are still in effect as of Closing, and any new leases entered into pursuant to Section 4.4; and (ii) a current listing of any 

21

tenant security deposits and prepaid rents held by Seller with respect to the Property as set forth in a current Rent Roll which shall be certified by Seller, to the best of Seller’s knowledge, to be true and correct in all material respects.
9.2.4    Copies of all Designated Service Contracts.
9.2.5    All books and records at the Property held by or for the account of Seller, including, without limitation, plans and specifications, as available.
9.2.6    An affidavit pursuant to the Foreign Investment and Real Property Tax Act in the form attached hereto as Exhibit 9.2.6.
9.2.7    A letter notifying tenants of the conveyance of the Property in the form attached hereto as Exhibit 9.2.7.
9.2.8    The Title Company’s standard owner’s affidavit, subject to the terms of this Agreement.
9.3    Purchaser’s Deliveries.  At the Closing, Purchaser shall pay Seller the Purchase Price.  One (1) day prior to the Closing Purchaser shall deliver executed originals of the agreements referred to in Sections 9.2.2 and 9.2.7 to the Title Company.
9.4    Possession.  Purchaser shall be entitled to possession of the Property upon conclusion of the Closing, subject to the Permitted Encumbrances.  
9.5    Insurance.  Seller shall terminate its policies of insurance as of noon Central Time on the Closing Date, and Purchaser shall be responsible for obtaining its own insurance thereafter. 
9.6    Post‐Closing Collections.  Purchaser shall use its best efforts during the four (4) month period immediately following Closing to collect and promptly remit to Seller rents or other amounts due Seller for the period prior to Closing.  Purchaser shall apply such rents or other amounts received after the Closing Date, first for the account of Purchaser for amounts currently due to Purchaser; second, to Seller for any and all amounts due to Seller for periods prior to Closing; and the balance to be retained by Purchaser.  If Purchaser uses its best efforts to collect past-due amounts owed to Seller for the first four (4) months after Closing but is unsuccessful, Seller shall have the right to collect delinquent rents thereafter, but in no event shall Seller have the right to evict any tenant or terminate any tenant’s lease.  This Section shall survive the Closing.
9.7    Additional Obligations of Seller and Purchaser.  In addition to the other obligations of Purchaser and Seller described in this Section 9, at Closing, the following shall occur 

22

(either directly or through Title Company, as is customary for transactions of this type in the State of Colorado):
9.7.1    Seller and Purchaser shall execute and deliver any applicable ownership information or other disclosure forms or reports required under the laws of the State of Colorado or the United States.
9.7.2    To the extent the same are in Seller’s possession, Seller shall deliver to Purchaser the original certificates of occupancy for the Property and the originals of the other certificates, licenses and permits necessary for the ownership and operation of the Property, except to the extent the same are required to be and are affixed at the Property.
9.7.3    Seller and Purchaser shall execute and deliver settlement statements approved by the parties to reflect the credits, prorations and adjustments specifically provided for in this Agreement.
9.7.4    Seller and Purchaser agree to execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, any and all other instruments and documents as may be reasonably necessary in order to complete the transaction herein provided and to carry out the intent and purposes of this Agreement, including taking any actions or executing any documents post-Closing required by third parties to transfer the web addresses, domain names and URLs to Purchaser and required under the Designated Service Contracts. 
10.    DEFAULT; FAILURE OF CONDITION.
10.1    Purchaser Default.  If Purchaser shall become in breach of or default under this Agreement and the breach or default continues beyond the expiration of the notice and cure period, if any, provided in Section 11.6 hereof, the Deposit shall be retained by Seller as liquidated damages, and both parties shall be relieved of and released from any further liability hereunder except for the Surviving Obligations.  Seller and Purchaser agree that the Deposit is a fair and reasonable amount to be retained by Seller as agreed and liquidated damages in light of Seller’s removal of the Property from the market and the costs incurred by Seller and shall not constitute a penalty or a forfeiture.
10.2    Seller Default.  If Seller shall become in breach of or default under this Agreement and the breach or default continues beyond the expiration of the notice and cure period, if any, provided in Section 11.6 hereof, Purchaser shall elect as its sole and exclusive remedy hereunder either to (i) terminate the Agreement and recover the Deposit or; (ii) enforce Seller’s obligations to convey the Property by delivering written notice to Seller within ten (10) days after the scheduled Closing which describes such default and states Purchaser’s election to enforce specific performance and actually filing suit within such 10-day period, provided if such limitation 

23

on the time period to file suit is prohibited or limited by law, the time period shall be extended to the minimum limitation period allowed by law, and provided that no such action in specific performance shall seek to require Seller to do any of the following:  (1) change the condition of the Property or restore the same after any fire or other casualty; (2) subject to Section 10.3, below, expend money or post a bond to remove a title encumbrance or defect or correct any matter shown on a survey of the Property; or (3) secure any permit, approval, or consent with respect to the Property or Seller’s conveyance of the Property.  Purchaser waives any right to receive damages as a result of Seller’s default.  In the event Purchaser terminates this Agreement in accordance with this Section 10.2,  then Seller shall reimburse Purchaser for Purchaser’s actual unrelated third party out-of-pocket costs, not to exceed a maximum aggregate reimbursement of Fifty Thousand Dollars ($50,000.00) (the “Reimbursement”) and Seller’s obligation to make the Reimbursement shall survive the termination of this Agreement.
10.3    Failure of Condition.  If, prior to Closing, Seller discloses to Purchaser or Purchaser discovers that (i) title to the Property is subject to defects, limitations or encumbrances other than Permitted Encumbrances; or (ii) any representation or warranty of Seller contained in this Agreement is or, as of the Closing Date, will be materially inaccurate or untrue, then Purchaser shall promptly give Seller written notice of its objection thereto.  Notwithstanding the foregoing, Purchaser may not object to the state of title of the Property on the basis of matters set out in Section 3.4 above after the Cure Period.  Seller shall have five (5) days after notice from Purchaser to provide written notice to Purchaser about whether Seller will attempt to cure any such objection; provided, however, the parties acknowledge and agree that Seller shall have no obligation to cure any objection within (i) or (ii) above.  In the event that Seller elects to attempt to cure any such objection, Seller may elect to postpone the Closing for thirty (30) days and attempt to cure such objection.  If Purchaser fails to waive any such objection within five (5) days after notice from Seller that Seller will not cure the objection, this Agreement will terminate automatically and Seller shall promptly direct the Title Company to return the Deposit to Purchaser, and neither party shall have any liability to the other except for the Surviving Obligations.  For the purposes of this Agreement, any title defect, limitation or encumbrance other than a Permitted Encumbrance shall be deemed cured if Title Company will agree to issue the Title Policy, which policy takes no exception for such defect, limitation or encumbrance and is issued for no additional premium or for an additional premium if Seller agrees to pay such additional premium upon Closing.  Notwithstanding the foregoing or any other provision of this Agreement, it shall not be a failure of a condition precedent, a breach of any representation or warranty, or a default by Seller if a tenant is in default of his or her Lease.
11.    MISCELLANEOUS.
11.1    Entire Agreement.  This Agreement, together with the Exhibits attached hereto, all of which are incorporated by reference, is the entire agreement between the parties with 

24

respect to the subject matter hereof, and no alteration, modification or interpretation hereof shall be binding unless in writing and signed by both parties.
11.2    Severability; Construction.  If any provision of this Agreement or application to any party or circumstances shall be determined by any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement or the application of such provision to such person or circumstances, other than those as to which it is so determined invalid or unenforceable, shall not be affected thereby, and each provision hereof shall be valid and shall be enforced to the fullest extent permitted by law.  All dollar amounts stated in this Agreement are U.S. dollar amounts.  The normal rule of construction that any ambiguities be resolved against the drafting party shall not apply to the interpretation of this Agreement or any exhibits or amendments hereto.
11.3    Applicable Law.  THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE IN WHICH THE LAND IS LOCATED.
11.4    Assignability.  Except for an assignment to a wholly owned subsidiary of Purchaser with five (5) days’ prior written notice to Seller, Purchaser may not assign this Agreement without first obtaining Seller’s written consent.  Any assignment in contravention of this provision shall be void.  No assignment shall release the Purchaser herein named from any obligation or liability under this Agreement.  Any assignee shall be deemed to have made any and all representations and warranties made by Purchaser hereunder, as if the assignee were the original signatory hereto.  If Purchaser requests Seller’s written consent to any assignment, Purchaser shall (1) notify Seller in writing of the proposed assignment; (2) provide Seller with the name and address of the proposed assignee; (3) provide Seller with financial information including financial statements of the proposed assignee; and (4) provide Seller with a copy of the proposed assignment.
11.5    Successors Bound.  This Agreement shall be binding upon and inure to the benefit of Purchaser and Seller and their respective successors and permitted assigns.
11.6    Breach.  Should either party be in breach of or default under or otherwise fail to comply with any of the terms of this Agreement, except as otherwise provided in this Agreement, the complying party shall have the option to cancel this Agreement upon ten (10) days written notice to the other party of the alleged breach, default or failure by such other party to cure such breach within such ten (10) day period.  The non‐defaulting party shall promptly notify the defaulting party in writing of any such alleged breach, default or failure upon obtaining knowledge thereof.  The Closing Date shall be extended to the extent necessary to afford the defaulting party the full ten‐day period within which to cure such breach, default or failure; provided, however, that the failure or refusal by a party to perform on the scheduled Closing Date (except in respect of a 

25

Pending Default by the other party) shall be deemed to be an immediate default without the necessity of notice; and provided further, that if the Closing Date shall have been once extended as a result of default by a party, such party shall be not be entitled to any further notice or cure rights with respect to that or any other default.  For purposes of this Section 11.6, a “Pending Default” shall be a default for which (i) written notice was given by the non‐defaulting party, and (ii) the cure period extends beyond the scheduled Closing Date.
11.7    No Public Disclosure.  Neither Purchaser nor Seller shall make any public disclosure of the terms of this transaction before Closing, without the prior written consent of the other party, except that Purchaser may, without Seller’s consent, discuss the transaction in confidence with Purchaser’s Agents, proposed joint venturers or prospective mortgagees; make disclosure required by applicable law, including disclosures required to be made to the Securities and Exchange Commission; and issue a press release provided such press release does not disclose the name of the Seller, Teachers’ Retirement System of the State of Illinois, Capri Capital Partners, LLC, or the Purchase Price.  The provisions of this Section 11.7 shall survive Closing and any termination of this Agreement.
11.8    Captions.  The captions in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope of this Agreement or the scope or content of any of it provisions.
11.9    Attorneys’ Fees.  In the event of any litigation arising out of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees and costs.
11.10    No Partnership.  Nothing contained in this Agreement shall be construed to create a partnership or joint venture between the parties or their successors in interest.
11.11    Time of Essence.  Time is of the essence in this Agreement.
11.12    Counterparts; Electronic or Facsimile 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.  Facsimile or other electronic copies of signatures may be used in place of original signatures to this Agreement and shall be in all respects be treated in court proceedings or otherwise as the legal equivalent of an original signature.
11.13    Recordation.  Purchaser and Seller agree not to record this Agreement or any memorandum hereof.  The terms of this Section 11.13 shall survive any termination of this Agreement.

26

11.14    Proper Execution.  The submission by Seller to Purchaser of this Agreement in unsigned form shall be deemed to be a submission solely for Purchaser’s consideration and not for acceptance and execution.  Such submission shall have no binding force and effect, shall not constitute an option, and shall not confer any rights upon Purchaser or impose any obligations upon Seller irrespective of any reliance thereon, change of position or partial performance.  The submission by Seller of this Agreement for execution by Purchaser and the actual execution and delivery thereof by Purchaser to Seller shall similarly have no binding force and effect on Seller unless and until Seller shall have executed this Agreement and the Deposit shall have been received by the Title Company and a counterpart thereof shall have been delivered to Purchaser.
11.15    Tax Protest.  If, as a result of any tax protest or otherwise, any refund is paid or reduction of any real property or other tax or assessment is made available relating to the Property with respect to any period prior to the Closing Date, Seller shall be entitled to receive or retain such refund or the benefit of such reduction, less the equitable prorated costs of collection.  The terms of this Section 11.15 shall survive the Closing. 
11.16    Survival and Limitation of Representations and Warranties; Seller’s Knowledge.  The representations and warranties set forth in this Agreement are made as of the Effective Date and are remade as of the Closing Date and Section 5.1 shall survive the Closing but written notification of any claim arising therefrom and lawsuit must be received by Seller and filed within six (6) months of the Closing Date or such claim shall be forever barred and Seller shall have no liability with respect thereto.  In addition, upon Seller’s receipt of written notification of any such claim, Seller shall first be afforded at least ten (10) days to cure any breach of Seller’s representations and warranties prior to Purchaser’s filing any claim in connection therewith.  The aggregate liability of Seller for breach of any representations and warranties shall not exceed $500,000.00; and recovery of actual damages up to that amount is Purchaser’s sole and exclusive remedy for any such breach; provided, however, Seller shall have no liability to Purchaser for matters disclosed by Seller or discovered by Purchaser prior to Closing.  In addition, Seller shall have no liability related to any representation or warranty made by Seller unless and until such liability exceeds $37,500.00 in the aggregate.  For matters disclosed or discovered prior to Closing, Purchaser’s sole rights and remedies shall be as set forth in Section 10.3.  Whenever a representation or warranty is made in this Agreement on the basis of the best knowledge of Seller, such representation and warranty is made with the exclusion of any facts otherwise known or disclosed to Purchaser, and is made solely on the basis of the actual knowledge without inquiry or investigation of Jason Lewis, the asset manager with Capri Capital Partners, LLC (Seller’s investment advisor); provided, however, that such individual shall have no personal liability with respect to any such representation or warranty.  The provisions of this Section 11.16 shall survive the Closing.
11.17    No Processing.  Without Seller’s prior written consent, until the Closing, Purchaser shall not make any application to any governmental agency for any permit, approval, 

27

license or other entitlement for the Property or the use or development thereof, or have any communications with any governmental agency or official relating to the condition (environmental or otherwise) of the Property.
11.18    Calculation of Time Periods.  Unless otherwise specified, in computing any period of time described herein, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included at, unless such last day is a Saturday, Sunday or legal holiday for national banks in the location where the Property is located, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday, or legal holiday.  The last day of any period of time described herein shall be deemed to end at 5:00 p.m. Colorado time.
11.19    Section 1031 Exchange.  Either party may consummate the purchase or sale (as applicable) of the Property as part of a so-called like kind exchange (an “Exchange”) pursuant to § 1031 of the Code, provided that: (a) the Closing shall not be delayed or affected by reason of the Exchange nor shall the consummation or accomplishment of an Exchange be a condition precedent or condition subsequent to the exchanging party’s obligations under this Agreement, (b) the exchanging party shall effect its Exchange through an assignment of this Agreement, or its rights under this Agreement, to a qualified intermediary, (c) neither party shall be required to take an assignment of the purchase agreement for the relinquished or replacement property or be required to acquire or hold title to any real property for purposes of consummating an Exchange desired by the other party; and (d) the exchanging party shall pay any additional costs that would not otherwise have been incurred by the non-exchanging party had the exchanging party not consummated the transaction through an Exchange (such payment obligation shall survive Closing or any termination of this Agreement).  Neither party shall by this Agreement or acquiescence to an Exchange desired by the other party have its rights under this Agreement affected or diminished in any manner or be responsible for compliance with or be deemed to have warranted to the exchanging party that its Exchange in fact complies with § 1031 of the Code.
11.20    Limitation of Liability.  Purchaser hereby acknowledges and agrees that in no event shall any partner, member, manager, shareholder, director or officer of Seller ever be liable to Purchaser as a result of a breach of this Agreement, and Purchaser agrees to look solely to Seller for satisfaction of any claim, loss or damage.  The provisions of this Section 11.20 shall survive Closing or any termination of this Agreement.
11.21    Jury Waiver.  PURCHASER AND SELLER DO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THEIR RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, OR UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE DOCUMENTS DELIVERED BY PURCHASER AT CLOSING OR SELLER AT CLOSING, OR ANY COURSE OF CONDUCT, 

28

COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ANY ACTIONS OF EITHER PARTY ARISING OUT OF OR RELATED IN ANY MANNER WITH THIS AGREEMENT OR THE PROPERTY (INCLUDING WITHOUT LIMITATION, ANY ACTION TO RESCIND OR CANCEL THIS AGREEMENT AND ANY CLAIMS OR DEFENSES ASSERTING THAT THIS AGREEMENT WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE).  THIS WAIVER IS A MATERIAL INDUCEMENT FOR SELLER TO ENTER INTO AND ACCEPT THIS AGREEMENT AND THE DOCUMENTS DELIVERED BY PURCHASER AT CLOSING AND SHALL SURVIVE THE CLOSING OF TERMINATION OF THIS AGREEMENT.
11.22    Prohibited Persons and Transactions.  Each of Purchaser and Seller, for itself, represents that neither it nor any of its affiliates, nor any of their respective partners, members, shareholders or other equity owners, and none of their respective employees, officers, directors, representatives or agents is, nor will they become, a person or entity with whom United States persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated Nationals and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and will not engage in any dealings or transactions or be otherwise associated with such persons or entities.  The foregoing representations shall survive Closing and any termination of this Agreement.  Notwithstanding anything contained in this Section 11.22 to the contrary, the individual teacher beneficiaries of Teachers’ Retirement System of the State of Illinois are expressly excluded from the representations of this Section 11.22.
11.23    Rule 3-14 Compliance.  Seller shall provide to Purchaser (at Purchaser’s expense) copies of, or shall provide Purchaser reasonable access to, such factual information as may be reasonably requested by Purchaser, and in the possession of Seller, or its property manager or accountants, necessary to enable Purchaser'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 the one (1) immediately preceding calendar year.  Purchaser shall be responsible for all out-of-pocket costs, including reasonable attorney fees, associated with this audit.  Seller shall reasonably cooperate (at no cost or expense to Seller) with Purchaser’s auditor in the conduct of such audit, which will include verbal requests for information regarding internal controls and follow-up questions on the financial information provided to the Purchaser.  In addition, Seller agrees to provide to Purchaser, if requested by such auditor, historical financial statements for the Property to the extent in Seller’s possession, including (without limitation) income and balance sheet data for the Property, whether required before or after Closing.  Without limiting the foregoing, (i) Purchaser or its designated independent or other auditor may audit Seller’s operating statements of the Property, at Purchaser’s sole cost 

29

and expense, and Seller shall provide such documentation to the extent in Seller’s possession as Purchaser or its auditor may reasonably request in order to complete such audit, and (ii) Seller shall furnish to Purchaser such financial and other information to the extent in Seller’s possession as may be reasonably required by Purchaser or any affiliate of Purchaser 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 11.23 shall be an on-going condition to Closing for Purchaser’s benefit until Closing.  Seller shall maintain its records for use under this Section 11.23 for a period of not less than two (2) years after the Closing Date.  The provisions of this Section shall survive Closing for a period of two (2) years.
[Remainder of page intentionally left blank]

30

IN WITNESS WHEREOF, Purchaser and Seller have executed this Agreement on the date set forth below, effective as of the Effective Date.
SELLER:
TRM – MEREDITH PARK CORP., an Illinois corporation
By:   /s/ Jason Lewis    
Name:  Jason Lewis    
Title:  Vice President    
PURCHASER:
RRE OPPORTUNITY OP II, LP, a Delaware limited partnership 
 
By: Resource Real Estate Opportunity REIT II, Inc., its general partner
By: /s/ Shelle Weisbaum    
Name:  Shelle Weisbaum    
Title:  Senior Vice President    

31

By execution hereof, the Title Company hereby covenants and agrees to be bound by the terms of this Agreement.  Further, Title Company, by acceptance of any funds deposited by Purchaser hereunder, agrees to hold such funds and disburse the same only in accordance with the terms and conditions of this Agreement.  If Title Company is in doubt as to its duties or liabilities hereunder, it may continue to hold such funds until the parties mutually agree to the disbursement thereof, or until an order or judgment of a court of competent jurisdiction shall determine the rights of the parties hereto.  Title Company is a depository only and shall not be liable for any loss, damage or cost including, but not limited to, attorneys’ fees, which may be suffered by Seller or Purchaser in connection with Title Company’s action or inaction except those caused by Title Company’s negligence or willful failure to perform its duties hereunder.  In no circumstance shall Title Company be responsible or liable for the failure of any financial institution into which any funds deposited with Title Company have been deposited.
STEWART TITLE GUARANTY COMPANY
By:  /s/ Michael Lebovitz    
Name:    Michael Lebovitz                
Title:    Commercial Escrow Officer        

EXHIBIT 1.1.1 
 
LEGAL DESCRIPTION

Lot 1,
Meredith Park,
County of Boulder,
State of Colorado.

EXHIBIT 1.1.3 
 
INVENTORY OF PERSONAL PROPERTY

-

EXHIBIT 1.1.6 
 
SCHEDULE OF TENANTS (RENT ROLL)

EXHIBIT 3.1 
 
PROPERTY DOCUMENTS

(1)Monthly income statements for the Property beginning December 2013 and through date 
of sale;  

(2)Monthly bank statements for the Property beginning December 2013 through date of sale;

(3)Reconciliations to aforementioned bank statements;

(4)Monthly rent rolls for December 2013 through month of sale;

		
	(5)
	Trial Balances for the years ended 2013, 2014 and last date the seller owns the Property;

		
	(6)
	Balance Sheet at 12/31/13, 12/31/14, and the last month the seller owns the Property;

(7)Account payable and account receivable detail listing/aging reports at 12/31/13, 12/31/14 
and date of sale;

(8)Check registers and payables registers for January 2014, February 2014, January 2015, 
and February 2015;

		
	(9)
	Copy of management agreement;

		
	(10)
	General Ledger for 2013 and 2014;

		
	(11)
	Copies of all insurance invoices for past 12 months;

		
	(12)
	Copies of all real estate tax bills for 2013 and 2014 as well as any assessments or tax bills for 2015;

		
	(13)
	Contact person at the property management company with whom the auditors can discuss internal control procedures and walkthrough information;

(14)Standard Lease form with respect to the Property;

(15)Copies of all property utility bills for past 12 months;

(16)Copies of all utility contracts if applicable;

(17)On-site access to make copies and/or review the Tenant Leases including any and all modifications, supplements or amendments thereto and all tenant lease files;

(18)Current resident ledger report as well as a report on the date of sale;

(19)Current notices to vacate report;

(20)A schedule of all tenant deposits in the form customarily utilized by Seller;
(21)Contracts relating to the maintenance and operation of the Property and access at the 
Property to all maintenance and service logs for the Property;

(22)To the extent available at the property, copies of or access to any and all site plans, as-
built, boundary and topographical surveys of the Property, zoning reports, soil and compaction studies or tests for the Property, architectural drawings, plans and specifications with respect to the Property;

(23)Insurance loss runs during the period of Seller’s ownership of the Property;

(24)Most recent elevation certificates (if available);

(25)To the extent available, copies of all guaranties or warranties currently in effect related to 
the roof or any structure or operating system at the Property;

(26)A list of employee units and model/office units, and employee rental and discount 
information;

(27)A schedule of capital improvements completed during the period of Seller’s ownership;
(28)Documentation related to eviction activity for the past 12 months as well as the status of  all evictions currently in process;

(29)List of all personal property to be conveyed with the Property;

(30)To the extent available, the most recent tax, license fee and permit bills and copies of all 
such licenses and permits, including the certificates of occupancy;

(31)List of current employees of the Property and payroll;

(32)All engineering studies, environmental reports, termite inspections or warranties, to the 
extent available and in the Seller’s possession, which relate to its Property and were prepared for such Seller by third parties;

(33)The Seller’s ACM plan, lead in water O&M, and other O&M plans, if any.

(34)The most recent Title and Survey in Seller’s possession, which relate to its Property and 
were prepared for such Seller by third parties;

(35)Monthly occupancy and turnover percentages for 2013, 2014, and 2015;

(36)Summary of bad debt written-off in 2013, 2014, and 2015;

(37)Copies of tenant utility billing reports (RUBS) for the past 12 months, if applicable;

(38)Loan documents and lender correspondence, if applicable.
    

EXHIBIT 3.3 
 
SCHEDULE OF SERVICE CONTRACTS

	
							
	Ongoing Service Contracts:
	 
	 
	 
	 
	 
	 

	Snow Removal
	Valley Crest
	 
	 
	 
	 
	30 day notice, no cancellation fee

	Pest Control
	Bug-A-Boo Best Control,inc
	 
	 
	 
	 
	30 day notice, no cancellation fee

	Key system
	Handy Trac
	No
	 
	No Union Avail
	 
	30 day notice, no cancellation fee

	Marketing
	Rooof
	 
	 
	 
	 
	Lincoln Master Contract

	Marketing
	Zillow
	 
	 
	 
	 
	Lincoln Master Contract

	Marketing
	Apartments.com
	 
	 
	 
	 
	Lincoln Master Contract

	ILS Market Survey Tools
	Spherexx
	 
	 
	 
	 
	Lincoln Master Contract

	Marketing
	For Rent
	 
	 
	 
	 
	Lincoln Master Contract

	Answering Service
	Indatus
	 
	 
	 
	 
	30 day notice, no cancellation fee

	Garbage Removal/Recycling
	Western Disposal
	 
	 
	 
	 
	30 day notice. No contract. Only provider in Boulder.

	Phone Service
	Integra
	 
	 
	 
	 
	30 day notice, no cancellation fee

	Lease Preparation
	Property Solutions
	 
	 
	 
	 
	Lincoln Master Contract

	Cable
	Comcast
	 
	 
	 
	 
	60 day notice, no cancellation fee

	Alarm Monitoring
	Global Fire
	 
	 
	 
	 
	30 day notice, no cancellation fee

EXHIBIT 9.2.1 
 
SPECIAL WARRANTY DEED

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

                        
                        
                        
Attention:                    

SPECIAL WARRANTY DEED

STATE OF COLORADO    §
§    KNOW ALL MEN BY THESE PRESENTS THAT:
COUNTY OF ___________    §

TRM – Meredith Park Corp., an Illinois corporation (hereinafter called “Grantor”), whose address is c/o Capri Capital partners, LLC, 875 N. Michigan Avenue, Suite 3430, Chicago, Illinois 60611, Attention:  Asset Manager, for and in consideration of the sum of Ten Dollars ($10.00) and other valuable consideration paid to Grantor by                                         , a                               (hereinafter called “Grantee”), whose address is ____________________________________ _________________________________, the receipt and sufficiency of which are hereby acknowledged, does hereby GRANT, SELL, CONVEY, ASSIGN and DELIVER to Grantee the real property described in Exhibit A attached hereto and made a part hereof, together with all buildings and other improvements situated thereon, all fixtures and other property affixed thereto, all right, title and interest of Grantor in and to adjacent streets, alleys and rights-of-way (whether open, closed or proposed) and all right, title and interest in rights, privileges, easements, hereditaments, and appurtenances belonging or in any way appertaining thereto, subject to the encumbrances described in Exhibit B attached hereto and made a part hereof (hereinafter called the “Permitted Encumbrances”).

TO HAVE AND TO HOLD the herein described property, together with all and singular the rights and appurtenances thereto in anywise belonging unto Grantee, its successors and assigns, forever, and Grantor does hereby bind itself and its successors and assigns to warrant and forever defend all and singular the said premises unto Grantee, its successors and assigns against every person whomsoever lawfully claiming, or to claim the same, or any part thereof, by, through, or under Grantor, but not otherwise, subject however, to the Permitted Encumbrances

Grantee hereby assumes the payment of 2015 ad valorem taxes on the herein described property.

Address of Property:  4970 Meredith Way, Boulder, Colorado 80303
IN WITNESS WHEREOF, this Deed is executed by Grantor on this         day of                 , ______, to be effective as of             , ______.

	
		
	 
	TRM – MEREDITH PARK CORP., an Illinois
corporation

By:      
Name:      
Title:         

STATE OF ILLINOIS        §
§
COUNTY OF COOK            §

This instrument was acknowledged before me on             , ______________ by ______________, __________ of TRM – Meredith Park Corp., an Illinois corporation, appeared before me this day in person and signed and sealed this instrument as her free and voluntary act on behalf of said TRM – Meredith Park Corp. 

        
Notary Public, State of Illinois
    
My Commission Expires:        

                    

EXHIBIT A
To Special Warranty Deed
PROPERTY DESCRIPTION

EXHIBIT B
To Special Warranty Deed
		
	1.
	Real property taxes and assessments for the year 2015 and thereafter, a lien not yet due and payable.

[INSERT PERMITTED ENCUMBRANCES]

EXHIBIT 9.2.2 
 
BILL OF SALE AND ASSIGNMENT AND ASSUMPTION AGREEMENT
For valuable consideration, the receipt and sufficiency of which are hereby acknowledged,                                         , a                         (“Seller”), hereby assigns, sells and conveys to                                         , a                      (“Purchaser”), all of Seller’s right, title and interest in and to, and obligations under or related to, the following (collectively, the “Conveyed Property”):
1.    The leases (collectively, the “Leases”) and the security deposits currently held by Assignor (collectively, the “Security Deposits”), in each case relating to the property commonly known as                          and more particularly described on Exhibit A attached hereto (the “Property”).  The tenants under the Leases and the Security Deposits are listed on the rent roll attached hereto as Exhibit B.
2.    The contracts described on Exhibit C attached hereto and relating to the Property (collectively, the “Contracts”).
3.    All furniture, personal property, machinery, apparatus, supplies and equipment owned by Seller and currently used in the ownership, operation, repair and maintenance of the Property and situated thereon, and generally described on Exhibit D attached hereto.
4.    The common name of the Property and all signs, logos, trade names, trademarks, symbols or styles relating to the Property owned by Seller (specifically including the name “Canterwood” but excluding the name “Capri”) and all other intangible property now owned or hereafter acquired by Seller in connection with the Property, including without limitation all brochures, manuals, lists of prospective tenants, advertising materials, assignable telephone and facsimile numbers, plans, specifications, drawings, reports, studies and any and all web addresses, domain names and URLs relating to the Property, and all social media accounts and logo, photo, video and e-brochure files for the Property.
5.    All unexpired assignable warranties, guaranties and sureties relating to the Property; and
6.    All assignable governmental permits, licenses, certificates and authorizations relating to the use, occupancy or operation of the Property.
Purchaser hereby assumes and accepts the conveyance, assignment and delegation of the Conveyed Property as aforesaid, on an “AS IS, WHERE IS” basis, and “WITH ALL FAULTS.”  Other than the express representations and warranties made herein and in that certain Purchase and Sale Agreement dated ______________ between Seller and Purchaser, but specifically subject to the terms and provisions in said Purchase and Sale Agreement.  Seller has not made, and does not make, any express or implied warranty or representation of any kind whatsoever with respect to the Conveyed Property, including, but not limited to:  title; merchantability; fitness for any particular purpose; its design or condition; its quality or capacity; workmanship or compliance with the requirements of any law, rule, specification or contract pertaining thereto; patent infringement; or latent defects.
Purchaser hereby agrees to indemnify, defend and hold harmless Seller from and against any and all cost, liability, loss, damage or expense, including, without limitation, reasonable attorneys’ fees, originating or relating to the period on or after the date hereof and arising out of the Purchaser’s obligations under or related to any Lease or Contract.
Seller hereby agrees to indemnify, defend and hold harmless Purchaser from and against any and all cost, liability, loss, damage or expense, including, without limitation, reasonable attorneys’ fees, originating or relating to the period prior to the date hereof and arising out of the Sellers’s obligations under or related to any Lease or Contract.
If any litigation between Purchaser and Seller arises out of the obligations of the parties under this agreement or concerning the meaning or interpretation of any provision contained herein, the non-prevailing party shall pay the prevailing party’s costs and expenses of such litigation, including, without limitation, reasonable attorneys’ fees.
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.
IN WITNESS WHEREOF, Seller and Purchaser have executed this agreement as of            , 20____.
	
		
	SELLER:
	TEM – MEREDITH PARK CORP., an Illinois
corporation

By:      
Name:   
Title:      

	
		
	PURCHASER:
	RRE OPPORTUNITY OP II, LP, a Delaware limited
partnership

By:      
Name:   
Title:      

EXHIBIT 9.2.6 
 
AFFIDAVIT PURSUANT TO FOREIGN INVESTMENT 
AND REAL PROPERTY TAX ACT
TRM – Meredith Park Corp., an Illinois corporation (“Transferor”), the transferor of the real property described in Exhibit A attached hereto, hereby certifies as follows:
		
	1.
	Transferor’s United States taxpayer identification number is __________.

		
	2.
	Transferor is not a “disregarded entity” as defined in Treasury Regulations, Section 1.1445-2(b)(2)(iii).

		
	3.
	Transferor is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Internal Revenue Code and Treasury Regulations).

Transferor understands that the purchaser of such real property intends to rely on the foregoing representations in connection with the United States Foreign Investment and Real Property Act.
TRM – MEREDITH PARK CORP., an Illinois
Corporation

By:      
Name:      
Title:      

EXHIBIT 9.2.7 
 
TENANT NOTICE LETTER
__________, 2015
RE:    Your Lease (the “Lease”) at _______________________, Boulder, Colorado (the “Property”)
Dear Tenant:
You are hereby notified that TRM- Meredith Park Corp., an Illinois corporation (“Seller”), as owner of the Property and the current landlord under the Lease, has sold the Property to _______________________ (“New Owner”), as of the date of this letter.  In connection with such sale, Seller has assigned and transferred its interest in the Lease and all security deposits relating thereto to New Owner, and New Owner has assumed and agreed to perform all of the landlord’s obligations under the Lease (including any obligations set forth in the Lease to repay or account for any security deposits thereunder from and after such date).  Accordingly, (a) all your obligations under the Lease from and after the date of this letter shall be performable for the benefit of New Owner, and (b) all the obligations of landlord under the Lease, including any obligations to repay or account for any security deposits thereunder, shall be the binding obligation of New Owner.

Unless and until you are otherwise notified in writing by New Owner, the address of New Owner for all purposes under your lease is as set forth on Exhibit A hereto:
SELLER:
TRM – MEREDITH PARK CORP., an Illinois
Corporation

By:      
Name:      
Title:      
PURCHASER:
_______________________, a __________
By:      
Name:      
Title:      
Exhibit A
Address of New Owner:
 

1Exhibit

Exhibit 10.12

AGREEMENT OF PURCHASE AND SALE

The Grand Reserve of Naperville

By and Between

HART GRAND RESERVE, LLC,
a Delaware limited liability company,
Seller

and

RRE OPPORTUNITY OP II, LP,
a Delaware limited partnership,
Purchaser

DATED:  December 1, 2015

AGREEMENT OF PURCHASE AND SALE
THE GRAND RESERVE OF NAPERVILLE

THIS AGREEMENT OF PURCHASE AND SALE (“Agreement”) is made and entered into this 1st day of December, 2015 by and between HART Grand Reserve, LLC, a Delaware limited liability company ("Seller"), having an address of c/o Heitman Capital Management LLC, 191 North Wacker Drive, Suite 2500, Chicago, Illinois 60606, Attention:  Howard J. Edelman; facsimile number (312) 541-6738, and RRE Opportunity OP II, LP, a Delaware limited partnership ("Purchaser"), having an address of 1845 Walnut St., 18th Floor, Philadelphia, Pennsylvania 19103; Attention: Pamela Arms; facsimile number (215) 553-8426.

RECITALS

Seller is the owner of a parcel of real estate in Naperville, Illinois, legally described on Exhibit A attached hereto (the “Land”) and all buildings, structures and other improvements thereon (collectively, the "Real Property"), located at 504 Chamberlain Lane, Naperville, Illinois and commonly known as the Grand Reserve of Naperville.  The Property includes eighteen (18) three-story buildings and one (1) two-story building, containing 319 residential apartment units, 178 garages, 513 surface and tandem parking spaces and the underlying parcel of land. 

Subject to and on the terms and provisions of and for the considerations set forth in this Agreement, Seller has agreed to sell, and Purchaser has agreed to buy, the Property (as defined below).

NOW, THEREFORE, the parties hereto hereby agree as follows:

1.    Definitions.  As used in this Agreement, the following terms have the following meanings:

Closing.  The closing of the purchase and sale transaction contemplated herein.

Closing Date.  December 15, 2015, subject to extension as provided in Section 20.

Due Diligence Period.  The period commencing on November 11, 2015, the date of the Access Agreement between Seller and Purchaser, and ending at 5:00 p.m. (Chicago time) on December 2, 2015.

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Escrow Company.  First American Title Insurance Company, 30 N. LaSalle Street, Suite 2700, Chicago, Illinois 60602, Attention: Cindy M. O’Donohue, Phone No. (312) 658-3432, e-mail codonohue@firstam.com. 

Title Company.  First American Title Insurance Company.

Property.  The Real Property collectively with (i) any and all appurtenances, easements, rights of way, privileges, licenses and other rights and benefits of Seller belonging to or in any way related to the Real Property, including without limitation, all water rights, open or proposed highways, streets, roads, avenues, alleys, strips and gores on, across, in front of, contiguous to, abutting, adjoining or otherwise benefiting the Real Property; (ii) all fixtures, machinery, equipment, furnishings, furniture, appliances and other tangible personal property owned by Seller and located on and used in connection with the ownership, maintenance or operation of the Real Property (collectively, the “Personal Property”); (iii) all leases, rental agreements and other occupancy agreements, including all modifications, addenda and/or amendments thereto, for the use, possession or occupancy of any portion of the Real Property (collectively, the “Leases”); (iv) the Storage Lease (as hereafter defined); and (v) all intangible property rights related to the ownership, use, maintenance and operation of the Real Property (collectively, the “Intangible Property”), including, without limitation, all warranties, guaranties, certificates of occupancy, permits, plans, consents, authorizations, variances, waivers, licenses, certificates, approvals, the right to use the name “Grand Reserve of Naperville” and variations thereof and any other trade names, trademarks, logos and symbols associated with or used in connection with the Real Property, any and all telephone and facsimile numbers assigned to Seller with respect to the Real Property, any and all web addresses, domain names and URLs with respect to the Real Property, and all social media accounts and logo, photo, video and e-brochure files for the Real Property.  The Property shall not include any service contracts and other agreements in effect with respect to the ownership, operation or maintenance of the Real Property (collectively, the “Service Contracts”), all of which are terminating at Closing.

2.    Sale; Purchase Price.

2.1    Subject to the terms and provisions hereof, Seller agrees to sell and convey to Purchaser, and Purchaser agrees to purchase from Seller the Property.

2.2    The total purchase price (hereinafter called the "Purchase Price") to be paid by Purchaser to Seller for the Property shall be Sixty-Six Million Seven Hundred Thousand and no/100 Dollars ($66,700,000.00).  The Purchase Price shall be payable in the following manner:

EAST\116250601.1     4

(a)    Earnest Money.  Purchaser shall, within two (2) business days after the full execution and delivery of this Agreement, deposit with the Escrow Company, as escrow agent, the amount of Two Million, Five Hundred Thousand and 00/100 Dollars ($2,500,000.00) (together with all interest earned thereon, the "Earnest Money") which Earnest Money shall be in the form of a wire transfer of immediately available United States of America funds.  Prior to the expiration of the Due Diligence Period (as hereinafter defined), One Million and 00/100 Dollars of the Earnest Money (the “Refundable Portion”) shall be fully refundable to Purchaser (for any reason or no reason at all) and One Million, Five Hundred Thousand and 00/100 Dollars ($1,500,000.00) of the Earnest Money shall be nonrefundable to Purchaser subject, however, to Purchaser’s review, to its satisfaction, during the Due Diligence Period (except as otherwise provided in Section 3.2(b)), of the Title Commitment (hereinafter defined), the Existing Survey (hereinafter defined), a Phase I Environmental Assessment, and 2015 real estate taxes (payable in 2016).  Subject to Purchaser’s right to terminate this Agreement and receive a refund of the entire Earnest Money in accordance with this Agreement, the Refundable Portion, together with the remaining balance of the Earnest Money, shall become nonrefundable at 5:00 p.m. (Chicago time) on the last day of the Due Diligence Period unless this Agreement is terminated prior to such time.  The Earnest Money shall be held and disbursed by the Escrow Company acting as escrow agent pursuant to the Earnest Money Escrow Agreement in the form of Exhibit B attached hereto which the parties have executed simultaneously with this Agreement.  The Earnest Money shall be invested in a federally issued or insured interest bearing instrument and shall be paid to the party to which the Earnest Money is paid pursuant to the provisions hereof.  If the sale hereunder is consummated in accordance with the terms hereof, the Earnest Money shall be applied to the Purchase Price to be paid by Purchaser at the Closing.  In the event of a default hereunder by Purchaser or Seller or if this Agreement is terminated in accordance with any other provision herein, the Earnest Money shall be applied as provided herein.

(b)    Cash Balance.  Purchaser shall pay the balance of the Purchase Price, subject to the prorations and adjustments described in Section 5 below, in cash (the "Cash Balance") by wire transfer of immediately available United States of America funds to the Escrow Company in accordance with the terms and conditions of this Agreement, so that Seller shall receive such payment in its designated account no later than 12:00 p.m. (Chicago time) on the Closing Date.

3.    Conditions Precedent.  In the event any of the conditions set forth in Sections 3.2(b), or 3.3 below shall not have been fulfilled, accepted or deemed accepted or waived as provided herein on or before the applicable dates specified herein, Seller shall not be in default hereunder and shall have no liability as a result thereof, and Purchaser’s sole right and remedy as a result thereof shall be the right to terminate this Agreement by giving written 

EAST\116250601.1     5

notice thereof to Seller on or before the respective dates specified herein, and thereupon all Earnest Money shall be refunded to Purchaser and neither party shall have any further rights or obligations hereunder, except for the Surviving Obligations (as hereinafter defined).

3.1    Seller's Deliveries.  Seller has delivered or made available to Purchaser complete copies of the items set forth on Schedule 3.1 hereto pertaining to the Property to the extent in Seller’s actual possession.  In the event this Agreement terminates for any reason, Purchaser shall immediately return to Seller all information delivered by Seller or Seller’s agent(s) to Purchaser or Purchaser’s agent(s).  The foregoing provision shall survive termination of this Agreement.

3.2    Due Diligence.  Purchaser and its representatives shall be permitted to enter upon the Property at any reasonable time and from time to time during the Due Diligence Period to examine, inspect and investigate the Property as well as all records and other documentation provided by Seller or located at the Property (collectively, “Due Diligence”).  The Due Diligence shall be subject to the terms, conditions and limitations set forth in this Section 3.2 and Purchaser's conduct thereof shall be in strict compliance with its covenants and agreements contained herein.

(a)    Purchaser shall have a right to enter upon the Property for the purpose of conducting its Due Diligence provided that in each such instance (i) Purchaser notifies Seller of its intent to enter the Property to conduct its Due Diligence not less than forty-eight (48) hours prior to such entry; (ii) the date and approximate time period are scheduled with Seller; and (iii) Purchaser is in full compliance with the insurance requirements set forth in Section 3.2(f) hereof.  At Seller's election, a representative of Seller shall be present during any entry by Purchaser or its representatives upon the Property for conducting its Due Diligence.  Purchaser shall take all necessary actions to ensure that neither it nor any of its representatives interfere with the tenants or ongoing operations occurring at the Property.  Purchaser shall not cause or permit any mechanic liens, materialmen's liens or other liens to be filed against the Property as a result of its Due Diligence.

(b)    Purchaser shall have until the expiration of the Due Diligence Period to conduct its Due Diligence and, in Purchaser's sole discretion, to determine whether the Property is acceptable to Purchaser.  On or before the expiration of the Due Diligence Period, Purchaser shall deliver to Seller written notice indicating whether Purchaser will proceed with the purchase of the Property in accordance with the terms and conditions of this Agreement.  If no such written notice is received by Seller, Purchaser shall be deemed to have elected to proceed with the purchase of the Property in accordance with the terms and conditions of this Agreement, the condition precedent set forth in this Section 3.2(b) shall be deemed satisfied and this Agreement shall continue in full force and effect.  

EAST\116250601.1     6

Notwithstanding anything to the contrary in this Agreement, if the 2015 real estate tax assessed value for the Property becomes available for Purchaser’s review after the end of the Due Diligence Period and such assessed value is more than fifty percent (50%) higher than the current assessed value for the Property, Purchaser shall have the right to terminate this Agreement by providing written notice to Seller two (2) business days after receipt of such assessed value but in no event later than one (1) business day prior to Closing and receive a refund of the entire Earnest Money.  In the event Purchaser’s written notice to Seller under this Section 3.2(b) indicates that Purchaser will not proceed with the purchase of the Property in accordance with the terms and conditions of this Agreement, this Agreement shall terminate, the Refundable Portion shall be returned to Purchaser and neither party shall have any further obligations to the other party hereunder, except for the Surviving Obligations; provided, however, the entire Earnest Money shall be returned to Purchaser in the event Purchaser terminates this Agreement in accordance with this Section 3.2(b) as a result of an unsatisfactory review of the Phase I Environmental Assessment or the 2015 real estate taxes or if Purchaser terminates this Agreement in accordance with Section 3.3.

(c)    The parties acknowledge and agree that all of the Service Contracts are terminating at Closing.  Notwithstanding the foregoing, Seller shall assign to Purchaser at Closing all of Seller’s right, title and interest in that certain Lease/Rental Agreement dated November 4, 2015 between Seller and PS Illinois Trust (the “Storage Lease”), pursuant to which Seller leases space to store all of Seller’s pool furniture during the off-season. The assignment to Purchaser of the Storage Lease shall be subject to the written consent of the lessor thereunder. 

(d)    Purchaser shall have the right to conduct, at its sole cost and expense, any inspections, studies or tests that Purchaser deems appropriate in determining the condition of the Property, provided, however, Purchaser is not permitted to perform any sampling, boring, drilling or other physically intrusive testing into the structures or ground comprising the Property, including, without limitation, a Phase II environmental assessment, without (i) submitting to Seller the scope and specifications for such testing; and (ii) obtaining the prior written consent of Seller for such testing, which consent may be withheld in Seller’s sole and absolute discretion.

(e)    Prior to Closing, Purchaser agrees and covenants with Seller not to disclose to any third party (other than lenders, accountants, attorneys and other professionals and consultants in connection with the transaction contemplated herein) without Seller's prior written consent, unless Purchaser is obligated by law to make such disclosure, any of the reports or any other documentation or information obtained by Purchaser which relates to the Property or Seller in any way, all of which shall be used by Purchaser and its agents solely in connection with the transaction contemplated hereby.  In 

EAST\116250601.1     7

the event that this Agreement is terminated, Purchaser agrees that all such information will continue to be held in strict confidence.

(f)    Purchaser agrees to indemnify, protect, defend and hold Seller, Heitman Capital Management LLC (“HCM”), and their respective direct and indirect  partners, trustees, beneficiaries, shareholders, members, managers, officers, directors, employees, advisors and other agents (collectively, the "Indemnified Parties") harmless from and against any and all liabilities, demands, actions, causes of action, suits, claims, losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees, court costs and litigation expenses) suffered or incurred by any of the Indemnified Parties as a result of or in connection with any activities of Purchaser (including activities of any of Purchaser's employees, consultants, contractors or other agents) relating to the Property, including, without limitation, mechanics' liens, damage to the Property, injury to persons or property resulting from such activities in connection therewith.  Notwithstanding the foregoing, Purchaser’s indemnification obligations under this Section 3.2(f) shall not extend to any preexisting conditions merely found to exist by Purchaser (except to the extent that the actions of Purchaser or its representatives have exacerbated the same), or the gross negligence or willful misconduct of the Indemnified Parties.  In the event that the Property is disturbed or altered in any way as a result of such activities, Purchaser shall promptly restore the Property to substantially the same condition existing prior to the commencement of such activities which disturbed or altered the Property.  Furthermore, Purchaser agrees to maintain and cause any of its representatives or agents conducting any Due Diligence to maintain and have in effect commercial general liability insurance with (i) limits of not less than Two Million and 00/100 Dollars ($2,000,000.00) per occurrence for personal injury, including bodily injury and death, and property damage, (ii) HART Grand Reserve, LLC and Heitman Capital Management LLC named as additional insured parties, and (iii) waiver of subrogation.  Purchaser shall deliver to Seller a copy of the certificates of insurance effectuating the insurance required hereunder prior to the commencement of such activities which certificates shall provide that such insurance shall not be terminated or modified without at least thirty (30) days' prior written notice to Seller.

(g)    Purchaser acknowledges and agrees that it shall have no right to review or inspect any of the following:  (i) internal memoranda, correspondence, analyses, documents or reports prepared by or for Seller or HCM or an affiliate of Seller or HCM in connection with (A) this Agreement, (B) the transaction contemplated by this Agreement, or (C) the acquisition or refinancing of the Property by Seller (other than environmental reports, if any), (ii) communications between Seller and HCM, and (iii) appraisals or other valuations of the Property in the possession of Seller or HCM.

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(h)    Sections 3.2(e) and 3.2(f) and such other provisions in this Agreement designated as expressly surviving the termination hereof shall survive the termination of this Agreement (collectively, the "Surviving Obligations").

3.3    Title and Survey.  Seller shall, at Seller’s sole cost and expense, obtain and deliver to Purchaser for Purchaser's review a commitment for an ALTA owner's policy of title insurance along with a copy of each instrument listed as an exception thereon (the "Title Commitment") on the Real Property issued by the Title Company and the survey of the Property prepared by Robert F. Sluis and last updated on September 9, 2011 (the “Existing Survey”).  During the Due Diligence Period, Purchaser shall have the right to obtain, at its sole cost and expense, any desired endorsements to the Title Commitment which are available.  Seller has ordered, at Purchaser’s cost and expense, an amendment to the Existing Survey (the “Amended Survey”).  Purchaser shall have until the date which is two (2) business days prior to the expiration of the Due Diligence Period (such date being referred to as the "Title Review Date") for examination of Title Commitment and Existing Survey and the making of any objections thereto, said objections to be made in writing and delivered to Seller on or before the Title Review Date.  If Purchaser shall fail to make any objections on or before the Title Review Date, Purchaser shall be deemed to have accepted all exceptions to the Title Commitment and the form and substance of the Existing Survey and all matters shown thereon; all such exceptions and matters and any exceptions or matters caused by or through Purchaser shall be included in the term "Permitted Exceptions" as used herein.  In the event Purchaser elects to receive the Amended Survey, then Purchaser shall have until the expiration of the Due Diligence Period for examination of the Amended Survey and the making of objections only to matters shown thereon that were not shown on the Existing Survey, such objections to be made in writing and delivered to Seller on or before the expiration of the Due Diligence Period.  If Purchaser shall fail to make any such objections to the Amended Survey on or before the expiration of the Due Diligence Period, Purchaser shall be deemed to have accepted the form and substance of the Amended Survey and all matters shown thereon; all such exceptions and matters and any exceptions or matters caused by or through Purchaser shall be included as Permitted Exceptions.  If Purchaser makes any objections to (i) the Title Commitment or Existing Survey are made on or before the Title Review Date, or (ii) the Amended Survey with respect to matters not shown on the Existing Survey are made on or before the expiration of the Due Diligence Period, then Seller shall have until the second (2nd) business day after the expiration of the Due Diligence Period to notify Purchase in writing if it agrees to cure (by removal, endorsement or otherwise) such objections on or before the Closing Date.  If no such notice from Seller concerning such election is received by Purchaser by such date, then Seller shall be deemed to have elected not to cure any such objections.  If Seller is unable or unwilling to cure such objections, then Purchaser may as its only option, elect to either:  (y) waive such objection(s) and consummate the transaction contemplated by this Agreement without adjustment to the Purchase Price; or (z) within five (5) days of Seller’s notice or failure to transmit a notice 

EAST\116250601.1     9

as noted in the preceding sentence, send Seller a written notice to terminate this Agreement (and failure of Purchaser to send such written notice shall constitute a waiver of such right to terminate), in which event the Earnest Money shall be returned to Purchaser and neither party shall have any further obligations to the other party except for the Surviving Obligations. Notwithstanding the foregoing, Seller shall cause any and all mortgages and related documents executed by or through Seller encumbering the Property and any and all monetary liens on or against the Property to be removed (or, in the case of monetary liens other than the liens of Seller’s mortgage financing, insured over by the Title Company) as of the Closing Date.

4.    Closing; Conditions; Deliveries.

4.1    Place of Closing.  The Closing shall be held on the Closing Date through an escrow arrangement established with the Escrow Company.

4.2    Condition to Parties' Obligation to Close.  In addition to all other conditions set forth in this Agreement, the obligation of Seller, on the one hand, and Purchaser, on the other hand, to consummate the transaction contemplated hereunder shall be contingent upon the following:

(a)    The other party's representations and warranties contained herein shall be true and correct in all material respects as of the date of this Agreement and the Closing Date;

(b)    As of the Closing Date, the other party shall have performed its obligations hereunder in all material respects and all deliveries to be made at Closing by such other party have been tendered;

(c)    As of the Closing Date, there shall exist no pending or threatened action, suit or proceeding with respect to the other party filed by a third party unrelated to the parties to this Agreement before or by any court or administrative agency which seeks to restrain or prohibit, or to obtain damages or a discovery order with respect to, this Agreement or the consummation of the transactions contemplated hereby;

(d)    As of the Closing Date, there shall exist no actions, suits, arbitrations, claims, assignments for the benefit of creditors, insolvencies, bankruptcies, reorganizations or other proceedings, pending or threatened against Seller that would materially and adversely affect Seller’s ability to perform its obligations under this Agreement or which would have a material adverse effect upon the Property or Purchaser’s ownership or use thereof;

EAST\116250601.1     10

(e)    As of the Closing Date, the Title Company shall be unconditionally prepared to deliver to Purchaser an ALTA extended coverage owner’s policy of title insurance (the “Title Policy”) or an initialed mark-up of the Title Commitment approved by Purchaser, together with all endorsements requested by Purchaser, in the form of Purchaser’s final marked up Title Commitment, insuring that fee title in the Real Property is vested in Purchaser subject only to the Permitted Exceptions; and

(f)    As of the Closing Date, as a condition solely for Seller’s benefit, Seller’s counsel shall be satisfied that the transactions contemplated by this Agreement are not prohibited by, nor will violate, the Employee Retirement Income Security Act of 1974. 

4.3    Deliveries.  At Closing each party shall execute and deliver to the other and/or the Escrow Company the following documents:

(a)    Seller shall deliver to Purchaser and/or the Escrow Company:

(i)    a deed (the "Deed") to the Property in recordable form, duly executed by Seller and acknowledged and in substantially the same form as set forth in Exhibit D attached hereto, conveying to Purchaser title to the Real Property, subject to the Permitted Exceptions;

(ii)    a bill of sale duly executed by Seller and in substantially the same form as set forth in Exhibit E attached hereto, conveying to Purchaser title to all personal property owned by Seller and located at the Real Property, if any;

(iii)    an assignment to Purchaser of the Leases duly executed by Seller and in substantially the same form as set forth in Exhibit F attached hereto;

(iv)    an assignment to Purchaser of the Storage Lease being assumed hereunder, and the Intangible Property, duly executed by Seller and in substantially the same form as set forth in Exhibit G attached hereto;

(v)    a non-foreign transferor certification pursuant to Section 1445 of the Internal Revenue Code and any similar provisions of applicable state law, in substantially the same form as set forth on Exhibit H attached hereto;

(vi)    such documents as may be reasonably required by the Title Company to consummate the transaction which is the subject matter of this Agreement, including, without limitation, such evidence that Seller has the power, right and authority to consummate the sale of the Property and an ALTA owner’s affidavit in form reasonably acceptable to the Title Company; 

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(vii)    copies of notices sent to the other party to each Service Contract terminated in accordance with this Agreement; and

(vii)    originals (or copies to the extent that originals are not available to Seller) of the Leases, the Storage Lease and keys to the Property.

(b)    Purchaser shall deliver to Seller or the Escrow Company:

(i)    the Cash Balance, by wire transfer, as provided in Section 2.2(b) hereof; 

(ii)    an assumption duly executed by the Purchaser of the assignments described in Sections 4.3(a)(iii) and (iv); and

(iii)    such documents as may be reasonably required by the Title Company to consummate the transaction which is the subject matter of this Agreement, including, without limitation, such evidence as may be required by Title Company confirming that Purchaser has the power, right and authority to consummate the purchase of the Property.

(c)    Seller and Purchaser shall jointly deliver to the Escrow Company:

(i)    A closing statement approved by Seller and Purchaser; 

(ii)    All transfer declarations or similar documentation required by law, including, the Naperville Real Estate Transfer Declaration;

(iii)    A letter to the tenants of the Property in the form of Exhibit I attached hereto; and

(iv)    Notices in substantially the form of Exhibit J attached hereto to the other party to each Service Contract assumed by Purchaser pursuant to Section 3.2(c) of this Agreement.

4.4    Permitted Termination.  So long as a party is not in default hereunder, if any condition to such party’s obligation to proceed with the Closing hereunder has not been satisfied in all material respects or waived as of the Closing Date or such earlier date as provided herein, such party may, in its sole discretion, terminate this Agreement by delivering written notice to the other party before the Closing Date or such earlier date required 

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hereunder, or elect to close, notwithstanding the non-satisfaction of such condition, in which event such party shall be deemed to have waived any such condition.

5.    Prorations.  All items of income and expense shall be paid, prorated or adjusted as of the close of business on the day prior to the Closing Date (the "Proration Date") in the manner hereinafter set forth: 

5.1    Purchaser shall be credited with (i) the amount of all rents received by Seller and attributable to the period commencing on the Closing Date, (ii) all unapplied refundable cash security deposits held by Seller and which were made by tenants under all Leases in effect as of the Closing Date, and (iii) all prepaid security deposits for Leases whose terms have not commenced as of the Closing Date.

5.2    All collected rents for the month of Closing shall be prorated between Purchaser and Seller based upon their respective days of ownership for such month in which the Closing occurs.  Neither Purchaser nor Seller shall receive credit at Closing for any payments of rental obligations due but not paid as of the Proration Date. 

5.3    Purchaser covenants to bill tenants on a monthly basis for amounts due from tenants attributable to periods prior to Closing for a period of three (3) consecutive months but shall have no obligation to enforce collection of any such past due amounts from or against any tenant.  Any amounts received from tenants after Closing shall be applied on a tenant by tenant basis in the following order: (i) first on account of any amount then due and payable or past-due and payable to Purchaser from such tenant, (ii) next, on account of any amount due Seller from such tenant for the period up to and including the Proration Date and (iii) finally, any balance then remaining to Purchaser.  Seller retains the right to pursue its remedies against tenants after Closing for any delinquent payments or other amounts owed to Seller, except for actions or proceedings affecting possession or landlord liens.  However, Seller will not exercise any such rights or remedies unless such amounts have not been collected by Purchaser and paid to Seller within three (3) months after such amounts were due and payable to Seller.  Any money due to Seller under Section 5.2 or this Section 5.3 shall be remitted to Seller within fifteen (15) days after the end of each month in which Purchaser receives such money.

5.4    Operating expenses, including, without limitation, any prepaid expenses such as permits, licenses and membership dues, shall be prorated between Purchaser and Seller based upon the actual days of their respective ownership of the Property utilizing the actual expenses or reasonable estimates.

5.5    Real estate taxes shall be prorated on a cash basis, meaning that the real estate tax bills actually paid or to be paid in the year of Closing shall be apportioned based on the 

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number of days in the calendar year of closing that each party owns the property.  Such proration shall be without regard to the fiscal year to which the local assessor applies the payments.  Seller reserves the rights to continue to contest any assessment of the Property or any portion thereof and to attempt to obtain a refund for any taxes previously paid.  Seller shall retain all rights with respect to any refund of taxes applicable to any period prior to the Closing Date.

5.6    Except for utilities billed directly to tenants, utilities shall be prorated as of the Proration Date based upon estimates using the prior month's actual invoices. 

5.7    All insurance policies and property management agreements shall be terminated as of the Closing Date and there shall be no proration with respect to these items.

5.8    Not more than two (2) business days prior to Closing (“Walk-Though Date”), a representative of Purchaser and a representative of Seller shall conduct an onsite walk-through of the then unoccupied rental units on the Property to determine whether such unoccupied rental units are in “rent ready” condition.  With respect to any rental unit that is vacated on or before five (5) days prior to Closing that Seller has not placed in a “rent ready” condition before the Walk-Through Date, Purchaser shall receive a credit against the Purchase Price at Closing in the amount of $450.00 per unit.  As used herein, “rent ready” condition shall mean ready for occupancy, equipped with working appliances, cleaned and freshly painted, if necessary.

All other items which are customarily prorated in transactions similar to the transaction contemplated hereby and which were not heretofore dealt with, will be prorated as of the Proration Date.  Seller and Purchaser shall cause the Title Company to prepare a draft closing statement containing the prorations described above and deliver the same together with invoices or bills for all prorated expenses and other reasonable backup information from Seller no later than 12:00 p.m. (Chicago time) two (2) business days prior to the Closing Date.  In the event any prorations or computations made under this Section are based on estimates or prove to be incorrect, then either party shall be entitled to an adjustment to correct the same, provided that it makes written demand on the party from whom it is entitled to such adjustment within one hundred and twenty (120) days after the end of the calendar year in which the Closing occurs.  Purchaser shall indemnify and hold Seller harmless from and against any and all liabilities, losses, damages, claims and costs (including reasonable attorney fees, court costs and litigation expenses) which Purchaser received credits pursuant to this Section 5.  After the Closing, Seller agrees that it will take such actions and properly execute and deliver to Purchaser such further instruments of assignment, conveyance and transfer as may be necessary to assure, complete and evidence the full and effective transfer and conveyance of Property, including, without limitation, taking any actions or executing any documents required to transfer the web addresses, domain names and URLs to Purchaser 

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at Closing.  The indemnity set forth in the immediately preceding sentence and the covenants contained in this Section 5 shall survive Closing.

6.    Seller's Representations, Warranties and Covenants.  Seller hereby represents, warrants and covenants as follows:

6.1    Power.  Seller has the legal power, right and authority to enter into this Agreement and the instruments referenced herein and to consummate the transactions contemplated hereby.

6.2    Requisite Action.  All requisite limited liability company action has been taken by Seller in connection with entering into this Agreement and the instruments referenced herein and the consummation of the transactions contemplated hereby.  No consent of any partner, shareholder, member, creditor, investor, judicial or administrative body, authority or other party is required which has not been obtained to permit Seller to enter into this Agreement and consummate the transaction contemplated hereby.

6.3    Authority.  The individuals executing this Agreement and the instruments referenced herein on behalf of Seller have the legal power, right and actual authority to bind Seller to the terms and conditions hereof and thereof.

6.4    Validity.  This Agreement and all documents required hereby to be executed by Seller are and shall be valid, legally binding obligations of and enforceable against Seller in accordance with their terms and conditions.

6.5.    Conflicts.  None of the execution and delivery of this Agreement and documents referenced herein, the incurrence of the obligations set forth herein, the consummation of the transactions herein contemplated or referenced herein conflicts with or results in the material breach of any terms, conditions or provisions of or constitutes a default under, any bond, note, or other evidence of indebtedness or any contract, lease or other agreements or instruments to which Seller is a party.

6.6    Leases.  Attached hereto as Schedule 1 is a rent roll for the Property dated November 30, 2015, which shall be updated by Seller prior to Closing, if necessary, to include new tenants and delete terminated tenants.  Such rent roll is a true, correct and complete copy of the rent roll used by Seller in its ownership and management of the Property. To Seller’s knowledge, true, correct and complete copies of all Leases listed on the rent roll have been provided to Purchaser; and to Seller’s knowledge, all Leases are in full force and effect and free from material default.  Except as set forth in the rent roll, to Seller’s knowledge, there are no persons in occupancy of, or who will have any rights to occupy any portion of the Property after Closing, other than tenants under Leases.

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6.7    Service Contracts.  Attached hereto as Schedule 2 is a complete and accurate list of the Service Contracts as of the date of this Agreement, which shall be updated by Seller prior to Closing, if necessary, to include new Service Contracts and delete terminated Service Contracts.  To Seller’s knowledge, (i) true, correct and complete copies of all Service Contracts were provided to Purchaser in accordance with this Agreement; (ii) all Service Contracts are in full force and effect and free from material default; and (iii) there are no service or maintenance contracts that are obligations of Seller or the Property other than the Service Contracts.  

6.8    Notices.  Seller has not received any written notice that the Property, and all present uses and operations thereof, are currently in violation of any law or municipal ordinances, orders or requirements issued by the departments of building, fire, labor, health, environmental or other federal, state, county, municipal or other departments and governmental agencies having jurisdiction against or affecting the Property (collectively, “Applicable Laws”).

6.9    Litigation.  Except as set forth on Schedule 3 and except for matters covered by insurance, no litigation has been served upon Seller, nor to the best of the Seller’s knowledge has been filed, or threatened in writing, affecting the Seller's ability to consummate the transaction contemplated by this Agreement.  Schedule 3 shall be updated by Seller prior to Closing, if necessary.

6.10    No Bankruptcy.  Seller has not (a) made a general assignment for the benefit of creditors, (b) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by Seller’s creditors, (c) suffered the appointment of a receiver to take possession of all, or substantially all, of Seller’s assets, which remains pending as of the date of this Agreement, (d) suffered the attachment or other judicial seizure of all, or substantially all, of Seller’s assets, which remains pending as of the date of this Agreement, or (e) made an offer of settlement, extension or composition to its creditors generally

6.11    Non-Foreign Status.  Seller is not a “foreign person” within the meaning of IRC Section 1445(f)(3).

6.12    Indemnity.  Seller shall indemnify and hold Purchaser harmless from and against any and all claims, actions, judgments, liabilities, liens, damages, penalties, fines, costs and reasonable attorneys' fees, foreseen or unforeseen, asserted against, imposed on or suffered or incurred by Purchaser (or the Property) directly or indirectly arising out of or in connection with any breach of the warranties, representations and covenants set forth in this Agreement.  The warranties and representations set forth in this Section 6 shall be deemed remade as of Closing and updated if necessary, and said warranties and 

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representations as so remade and updated, and the indemnity obligation set forth in herein shall survive Closing, to the extent provided in Section 19 below.  In the event any update to Seller’s warranties and representations discloses a matter or circumstance that is immaterial (as reasonably determined by Purchaser), otherwise permitted herein, or not adverse to Purchaser (as reasonably determined by Purchaser), then Seller shall have no liability therefor and Purchaser shall not have the right to terminate this Agreement on account of such matter or circumstance.  In the event any update to Seller’s warranties and representations discloses a matter or circumstance that is material and adverse to Purchaser (as reasonably determined by Purchaser) and not otherwise permitted herein, Seller shall not be in default hereunder and shall have no liability as a result thereof, and Purchaser’s sole right and remedy as a result thereof shall be the right to terminate this Agreement by giving written notice thereof to Seller and (provided such material and adverse matter resulted from Seller’s Default, as hereinafter defined) receive the Reimbursement (as hereinafter defined), and thereupon all Earnest Money shall be refunded to Purchaser and neither party shall have any further rights or obligations hereunder, except for the Surviving Obligations.

As used in this Section 6, the term “to Seller's knowledge” “actual knowledge" or “best of Seller’s knowledge” or words of similar import (i) shall mean the actual knowledge of Howard Edelman and Helen Garrahy (the “Knowledge Individuals”) and not to any other persons, (ii) shall mean the actual knowledge of the Knowledge Individuals, without any investigation or inquiry of any kind, and (iii) shall not mean the Knowledge Individuals are charged with knowledge of the acts, omissions and/or knowledge of Seller's agents or employees.  Notwithstanding anything that may appear to be to the contrary, under no circumstances whatsoever shall any of the Knowledge Individuals be deemed to have any duties, obligations or liabilities hereunder or in connection herewith.

Notwithstanding anything contained in this Agreement to the contrary, Seller shall have no liability for breaches of any representations, warranties and certifications (individually, a “Representation” and collectively, the "Representations") which are made by Seller herein or in any of the documents or instruments required to be delivered by Seller hereunder if Purchaser, its officers, employees, shareholders, members, partners, or agents had knowledge of such breach by Seller (including, without limitation, knowledge gained by Purchaser or any such related party in the course of its Due Diligence as to a fact or circumstance which, by its nature, indicates that a Representation was or has become untrue or inaccurate) at Closing and Purchaser elects to proceed to close the transaction contemplated by this Agreement, and Purchaser shall not otherwise have the right to bring any lawsuit or other legal action against Seller, nor pursue any other remedies against Seller, as a result of the breach of such Representation caused thereby.

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7.    Purchase As-Is.  EXCEPT FOR THE REPRESENTATIONS OF SELLER EXPRESSLY SET FORTH IN THIS AGREEMENT OR ANY OF THE DOCUMENTS TO BE EXECUTED AND DELIVERED BY SELLER TO PURCHASER AT CLOSING (THE “SELLER’S CLOSING DOCUMENTS”), PURCHASER WARRANTS AND ACKNOWLEDGES TO AND AGREES WITH SELLER THAT PURCHASER IS PURCHASING THE PROPERTY IN ITS "AS-IS, WHERE IS" CONDITION "WITH ALL FAULTS" AND DEFECTS AS OF THE CLOSING DATE AND SPECIFICALLY AND EXPRESSLY WITHOUT ANY WARRANTIES, REPRESENTATIONS OR GUARANTEES, EITHER EXPRESS  OR IMPLIED, AS TO ITS CONDITION, FITNESS FOR ANY PARTICULAR PURPOSE, MERCHANTABILITY,  OR ANY OTHER WARRANTY OF ANY KIND, NATURE,  OR TYPE WHATSOEVER FROM OR ON BEHALF OF SELLER.  EXCEPT FOR THE REPRESENTATIONS OF SELLER EXPRESSLY SET FORTH IN THIS AGREEMENT OR ANY OF THE SELLER’S CLOSING DOCUMENTS, SELLER SPECIFICALLY DISCLAIMS ANY WARRANTY, GUARANTY OR REPRESENTATION, ORAL  OR WRITTEN, PAST OR PRESENT, EXPRESS OR IMPLIED, CONCERNING (A) THE VALUE, NATURE, QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE WATER, STRUCTURAL INTEGRITY, SOIL AND GEOLOGY; (B) THE INCOME TO BE DERIVED FROM THE PROPERTY; (C) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER MAY CONDUCT THEREON, INCLUDING THE POSSIBILITIES FOR FUTURE DEVELOPMENT OF THE PROPERTY; (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY  OR BODY; (E) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY; (F) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTY; (G) THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY; (H) THE PRESENCE OR ABSENCE OF MOLD OR OTHER BACTERIAL MATTER, RADON OR ANY HAZARDOUS MATERIALS AT, ON, UNDER, OR ADJACENT TO THE PROPERTY OR ANY OTHER ENVIRONMENTAL MATTER  OR CONDITION OF THE PROPERTY; OR (I) ANY OTHER MATTER WITH RESPECT TO THE PROPERTY.  PURCHASER ACKNOWLEDGES AND AGREES THAT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES OF SELLER CONTAINED IN THIS AGREEMENT, ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER WITH RESPECT TO THE PROPERTY WAS OBTAINED FROM A VARIETY OF SOURCES AND THAT SELLER HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND MAKES NO REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION.  SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS, 

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REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY, OR THE OPERATION THEREOF, FURNISHED BY ANY REAL ESTATE BROKER, AGENT, EMPLOYEE, SERVANT OR OTHER PERSON EXCEPT FOR THE EXPRESS REPRESENTATIONS SET FORTH IN THIS AGREEMENT.  PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT PURCHASER IS A SOPHISTICATED AND EXPERIENCED PURCHASER OF PROPERTIES SUCH AS THE PROPERTY AND HAS BEEN DULY REPRESENTED BY COUNSEL IN CONNECTION WITH THE NEGOTIATION OF THIS AGREEMENT.  SELLER HAS MADE NO AGREEMENT TO ALTER, REPAIR OR IMPROVE ANY OF THE PROPERTY.

UPON CLOSING, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES OF SELLER EXPRESSLY SET FORTH IN THIS AGREEMENT OR ANY OF THE SELLER’S CLOSING DOCUMENTS, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING, BUT NOT LIMITED TO, ADVERSE PHYSICAL OR CONSTRUCTION DEFECTS OR ADVERSE ENVIRONMENTAL, HEALTH OR SAFETY CONDITIONS MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INSPECTIONS AND INVESTIGATIONS, AND PURCHASER HEREBY FOREVER RELEASES AND DISCHARGES SELLER FROM ALL RESPONSIBILITY AND LIABILITY, INCLUDING WITHOUT LIMITATION, LIABILITIES AND RESPONSIBILITIES FOR SELLER’S OBLIGATIONS UNDER THE LEASES RELATING TO THE PHYSICAL, ENVIRONMENTAL OR LEGAL COMPLIANCE STATUS OF THE PROPERTY, WHETHER ARISING BEFORE OR AFTER THE DATE HEREOF, AND LIABILITIES UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT (“CERCLA”), REGARDING THE CONDITION, VALUATION, SALABILITY OR UTILITY OF THE PROPERTY, OR ITS SUITABILITY FOR ANY PURPOSE WHATSOEVER (INCLUDING, BUT NOT LIMITED TO, WITH RESPECT TO THE PRESENCE IN THE SOIL, AIR, STRUCTURES AND SURFACE AND SUBSURFACE WATERS, OF HAZARDOUS MATERIALS OR OTHER MATERIALS OR SUBSTANCES THAT HAVE BEEN OR MAY IN THE FUTURE BE DETERMINED TO BE TOXIC, HAZARDOUS, UNDESIRABLE OR SUBJECT TO REGULATION AND THAT MAY NEED TO BE SPECIALLY TREATED, HANDLED AND/OR REMOVED FROM THE PROPERTY UNDER CURRENT OR FUTURE FEDERAL, STATE AND LOCAL LAWS, REGULATIONS OR GUIDELINES, AND ANY STRUCTURAL AND GEOLOGIC CONDITIONS, SUBSURFACE SOIL AND WATER CONDITIONS AND SOLID AND HAZARDOUS WASTE AND HAZARDOUS MATERIALS ON, UNDER, ADJACENT TO OR OTHERWISE AFFECTING THE PROPERTY).  PURCHASER FURTHER HEREBY WAIVES (AND BY CLOSING THIS TRANSACTION WILL BE DEEMED TO HAVE WAIVED) ANY AND ALL OBJECTIONS AND COMPLAINTS (INCLUDING, BUT NOT LIMITED TO, FEDERAL, STATE AND LOCAL STATUTORY AND COMMON LAW BASED ACTIONS, AND ANY PRIVATE RIGHT OF ACTION 

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UNDER ANY FEDERAL, STATE OR LOCAL LAWS, REGULATIONS OR GUIDELINES TO WHICH THE PROPERTY IS OR MAY BE SUBJECT, INCLUDING, BUT NOT LIMITED TO, CERCLA) CONCERNING THE PHYSICAL CHARACTERISTICS AND ANY EXISTING CONDITIONS OF THE PROPERTY, INCLUDING WITHOUT LIMITATION, SELLER’S OBLIGATIONS UNDER THE LEASES RELATING TO THE PHYSICAL, ENVIRONMENTAL OR LEGAL COMPLIANCE STATUS OF THE PROPERTY, WHETHER ARISING BEFORE OR AFTER THE DATE HEREOF.

8.    Purchaser's Representations, Warranties and Covenants.  Purchaser hereby represents, warrants and covenants as follows:

8.1    Power.  Purchaser has the legal power, right and authority to enter into this Agreement and the instruments referenced herein and to consummate the transactions contemplated hereby.

8.2    Requisite Action.  All requisite action (corporate, trust, partnership or otherwise) has been taken by Purchaser in connection with entering into this Agreement and the instruments referenced herein and the consummation of the transactions contemplated hereby.  No consent of any partner, shareholder, member, creditor, investor, judicial or administrative body, authority or other party is required which has not been obtained or shall not be obtained prior to the expiration of the Due Diligence Period to permit Purchaser to enter into this Agreement and consummate the transaction contemplated hereby.

8.3    Authority.  The individuals executing this Agreement and the instruments referenced herein on behalf of Purchaser have the legal power, right and actual authority to bind Purchaser to the terms and conditions hereof and thereof.

8.4    Validity.  This Agreement and all documents required hereby to be executed by Purchaser are and shall be valid, legally binding obligations of and enforceable against Purchaser in accordance with their terms.

8.5    Conflicts.  Neither the execution and delivery of this Agreement and documents referenced herein, nor the incurrence of the obligations set forth herein, nor the consummation of the transactions herein contemplated, nor referenced herein conflict with or result in the material breach of any terms, conditions or provisions of or constitute a default under, any bond, note, or other evidence of indebtedness or any contract, lease or other agreements or instruments to which Purchaser is a party.

8.6    Litigation.  There is no action, suit or proceeding pending or threatened against Purchaser in any court or by or before any other governmental agency or instrumentality 

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which would materially and adversely affect the ability of Purchaser to carry out the transactions contemplated by this Agreement.

8.7    ERISA.  No assets used by Purchaser in connection with the transaction contemplated by this Agreement constitute the assets of (i) any “employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), which is subject to Title I of ERISA, (ii) any “plan” as defined in Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), which is subject to Section 4975 of the Code, or (iii) any entity deemed to hold “plan assets” (within the meaning of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA) of any such employee benefit plan or plan.

8.8     OFAC.  Neither Purchaser nor any person or entity that directly or, to Purchaser’s knowledge, indirectly owns an interest in Purchaser, nor any of its officers, directors or managing members, is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including Executive Order 13224 signed on September 24, 2001 and entitled “Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism”), or other governmental action, Purchaser’s activities do not violate the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 or the regulations or orders promulgated thereunder.  None of the funds of Purchaser have been or will be derived from any unlawful activity with the result that the investment of direct or indirect equity owners in Purchaser is prohibited by law or that the transaction or this Agreement is or will be in violation of law.

8.9    Indemnity.  Purchaser shall indemnify, protect and hold the Indemnified Parties harmless from and against any and all claims, actions, judgments, liabilities, liens, damages, penalties, fines, costs and reasonable attorneys' fees, foreseen or unforeseen, asserted against, imposed on or suffered or incurred by Seller directly or indirectly arising out of or in connection with any breach of the warranties, representations and covenants set forth in this Section 8.  The warranties, representations and indemnities set forth in this Section 8 shall be deemed remade as of Closing and shall survive Closing. 

9.    Closing Costs.  Seller shall pay the following expenses:  (i) the costs to obtain a base Title Policy; (ii) the costs of the Existing Survey; (iii) 50% of all closing escrow fees, including “New York Style” closing fees; (iv) Seller's legal fees and expenses; and (v) State and County transfer taxes.  Purchaser shall pay the following expenses: (a) the costs for any endorsements to the Title Policy; (b) the cost of any reinsurance of the Title Policy; (c) the costs to obtain the Amended Survey; (d) 50% of all closing escrow fees, including “New 

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York Style” closing fees; (e) the fee for the recording of the Deed; (f) all costs and expenses incurred in connection with the transfer of any transferable permits, warranties or licenses in connection with the ownership or operation of the Property; (g) all costs and expenses associated with Purchaser’s financing, if any (provided that Purchaser’s financing shall not be a condition to closing); (h) Purchaser's legal fees and expenses, and (i) City of Naperville transfer taxes.  The provisions of this Section 9 shall survive Closing or any termination of this Agreement.

10.    Commissions.  Seller shall be solely responsible for the payment of the commission to Moran and Company.  Seller and Purchaser each warrant and represent to the other that (other than Moran and Company) neither has had any dealings with any broker, agent, or finder relating to the sale of the Property or the transactions contemplated hereby, and each agrees to indemnify and hold the other harmless against any claim for brokerage commissions, compensation or fees by any broker, agent, or finder in connection with the sale of the Property or the transactions contemplated hereby resulting from the acts of the indemnifying party.  The provisions of this Section 10 shall survive Closing or any termination of this Agreement.

11.    New York Style Closing.  It is contemplated that the transaction shall be closed by means of a so-called New York Style Closing, with the concurrent delivery of the documents of title, transfer of interest, delivery of the Title Policy or an initialed mark-up Title Commitment described in Section 4.2(e) and the payment of the Purchase Price.  Seller and Purchaser agree to use reasonable efforts to complete all requirements for Closing prior to the Closing Date.  Seller and Purchaser also agree that disbursement of the Purchase Price, as adjusted by the prorations and adjustments, shall not be conditioned upon the recording of the Deed, but rather, upon the agreement by the Title Company to issue the Title Policy.  Seller and Purchaser shall each provide any undertaking to the Title Company reasonably necessary to accommodate the New York Style Closing.

12.    Attorneys' Fees and Costs.  In the event suit or action is instituted to interpret or enforce the terms of this Agreement, or in connection with any arbitration or mediation of any dispute, the prevailing party shall be entitled to recover from the other party such sum as the court, arbitrator or mediator may adjudge reasonable as such party's costs and attorney's fees, including such costs and fees as are incurred in any trial, on any appeal, in any bankruptcy proceeding (including the adjudication of issues peculiar to bankruptcy law) and in any petition for review.  Each party shall also have the right to recover its reasonable costs and attorney's fees incurred in collecting any sum or debt owed to it by the other party, with or without litigation, if such sum or debt is not paid within fifteen (15) days following written demand therefor.  The provisions of this Section 12 shall survive Closing or any termination of this Agreement.

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13.    Notice.  All notices, demands, deliveries and communications (a "Notice") under this Agreement shall be delivered or sent by: (i) first class, registered or certified mail, postage prepaid, return receipt requested, (ii) nationally recognized overnight carrier, or (iii) facsimile with original Notice sent via overnight delivery addressed to the address of the party in question set forth in the first paragraph of this Agreement and copies to the parties designated below or to such other address as either party may designate by Notice pursuant to this Section 13.  Notices shall be deemed given (x) three business days after being mailed as provided in clause (i) above, (y) one business day after delivery to the overnight carrier as provided in clause (ii) above, or (z) on the day of the transmission of the facsimile so long as it is received in its entirety by 5:00 p.m. (Chicago time) on such day and the original of such Notice is received the next business day via overnight mail as provided in clause (iii) above.

Notices to Seller copy to:        FisherBroyles, LLP
345 North Canal Street
Suite C-202
Chicago, Illinois 60606
Attention:  Richard P. Blessen
facsimile no. (312) 548-0645

Notices to Purchaser copy to:    Resource Real Estate, Inc.
1845 Walnut Street, 18th Floor
Philadelphia, Pennsylvania 19103
Attention: Aldie Jennings Loubier, Esq.
facsimile no. (215)-553-8426

14.    Fire or Other Casualty; Condemnation.

14.1    If the Property or any part thereof is damaged by fire or other casualty prior to the Closing Date which would cost in excess of $1,500,000.00 to repair (as determined by an insurance adjuster selected by the insurance carriers), Purchaser may terminate this Agreement by written notice to Seller given on or before the earlier of (i) twenty (20) days following such casualty or (ii) the Closing Date.  In the event of such termination, this Agreement shall be of no further force and effect and, except for the Surviving Obligations, neither party shall thereafter have any further obligation under this Agreement, and Seller shall direct the Escrow Company to promptly return all Earnest Money to Purchaser.  If Purchaser does not elect to terminate this Agreement or the cost of repair is determined by said adjuster to be less than $1,500,000.00, then the Closing shall take place as herein provided without abatement of the Purchase Price, and Seller shall assign and transfer to Purchaser on the Closing Date, without warranty or recourse, all of Seller's right, title and interest to the balance of insurance proceeds paid or payable to Seller on account of such 

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fire or casualty remaining after reimbursement to Seller for the total amount of all costs and expenses actually incurred by Seller in connection therewith including but not limited to making emergency repairs, securing the Property and complying with applicable governmental requirements.  Seller shall pay to Purchaser the amount of the deductible of any of Seller's applicable insurance policies.

14.2    If any material portion of the Property is taken in eminent domain proceedings prior to Closing, Purchaser may terminate this Agreement by notice to Seller given on or before the earlier of (i) twenty (20) days after such taking or (ii) the Closing Date, and, in the event of such termination, this Agreement shall be of no further force and effect and, except for the Surviving Obligations, neither party shall thereafter have any further obligation under this Agreement, and Seller shall direct the Escrow Company to promptly return all Earnest Money to Purchaser.  If Purchaser does not so elect to terminate or if the taking is not material, then the Closing shall take place as herein provided without abatement of the Purchase Price, and Seller shall deliver or assign to Purchaser on the Closing Date, without warranty or recourse, all of Seller's right, title and interest in and to all condemnation awards paid or payable to Seller.

15.    Operations After Date of This Agreement.  Seller covenants and agrees with Purchaser that after the date hereof through the Closing, Seller will (except as specifically provided to the contrary herein):

(i)    Refrain from transferring any of the Property or creating on the Property any easements or mortgages which will survive Closing or permitting any changes to the zoning classification of the Land;

(ii)    Refrain from entering into or amending any contracts, or other agreements (excluding leases) regarding the Property (other than contracts in the ordinary and usual course of business and which are cancelable by Seller without penalty within thirty (30) days after giving notice thereof);

(iii)    Continue to manage, operate, maintain, repair and insure the Property in a good order and repair, reasonable wear and tear excepted and in a manner consistent with Seller's current practices, including, make ordinary repairs and replacements;

(iv)    Refrain from offering the Property for sale or marketing the same; 

(v)    Comply in all material respects with the terms of the Leases and Service Contracts;

EAST\116250601.1     24

(vi)      Enter into new Leases only on market terms;

(vii)    Deliver or make available to Purchaser copies of all new Leases and new Service Contracts entered into after the date hereof;

(viii)    Deliver or make available to Purchaser copies of all written notices received by Seller asserting any breach or default under the Leases or Service Contracts or any violation of any Applicable Law; and

(ix)    Deliver to Purchaser written notice of every threatened or actual litigation, suit, arbitration, unsatisfied order or judgment, governmental investigation or proceeding concerning or affecting the Property or any portion thereof.
    
16.    Assignment.  Except as set forth below, Purchaser shall not assign this Agreement without Seller's prior written consent which consent may be withheld for any reason or no reason.  Subject to the previous sentence, this Agreement shall apply to, inure to the benefit of and be binding upon and enforceable against the parties hereto and their respective successors and assigns.  Notwithstanding the foregoing, Purchaser shall have the right to assign this Agreement to an entity controlled by or under common control of Purchaser without Seller’s consent.  Any assignment shall be conditioned upon Seller’s receipt of a duly executed express assumption of all of the duties and obligations of Purchaser by the proposed assignee in a form acceptable to Seller not less than five (5) business days prior to the Closing Date.

17.    Remedies.

(a)    (i) IN THE EVENT THAT SELLER SHALL FAIL TO COMPLY WITH ITS EXPRESS OBLIGATIONS UNDER THIS AGREEMENT AFTER WRITTEN NOTICE FROM PURCHASER AND A FIVE (5) BUSINESS DAY PERIOD TO CURE, AND SUCH FAILURE IS NOT A RESULT OF PURCHASER'S DEFAULT OR A TERMINATION OF THIS AGREEMENT BY PURCHASER OR SELLER PURSUANT TO A RIGHT TO DO SO UNDER THE PROVISIONS HEREOF, PURCHASER, IN THE CASE WHERE SUCH FAILURE IS BASED UPON AN INTENTIONAL BREACH BY SELLER (“SELLER’S DEFAULT”), SHALL ONLY BE ENTITLED TO, AT ITS ELECTION, EITHER: (A) THE REMEDY OF SPECIFIC PERFORMANCE, OR (B) TO TERMINATE THIS AGREEMENT BY WRITTEN NOTICE TO SELLER AND RECEIVE A REFUND OF THE EARNEST MONEY.  IN NO EVENT SHALL SELLER BE LIABLE TO PURCHASER FOR ANY PUNITIVE, SPECULATIVE, CONSEQUENTIAL OR OTHER DAMAGES.  IN THE CASE WHERE SUCH FAILURE IS BASED UPON AN UNINTENTIONAL BREACH BY SELLER, PURCHASER, AS ITS SOLE AND EXCLUSIVE REMEDY, MAY TERMINATE THIS AGREEMENT AND RECEIVE A 

EAST\116250601.1     25

REFUND OF THE EARNEST MONEY.  EXCEPT IN CONNECTION WITH THE REMEDY OF SPECIFIC PERFORMANCE, PURCHASER SHALL NOT BE ENTITLED TO RECORD A LIS PENDENS OR NOTICE OF PENDENCY OF ACTION AGAINST THE PROPERTY FOR ANY REASON WHATSOEVER.  IN THE EVENT PURCHASER TERMINATES THIS AGREEMENT FOR SELLER’S DEFAULT IN ACCORDANCE WITH THE FIRST SENTENCE OF THIS SECTION 17,  THEN SELLER SHALL REIMBURSE PURCHASER FOR PURCHASER’S THIRD-PARTY, OUT-OF-POCKET COSTS, NOT TO EXCEED A MAXIMUM AGGREGATE REIMBURSEMENT OF SEVENTY-FIVE THOUSAND DOLLARS ($75,000) (THE “REIMBURSEMENT”) AND SELLER’S OBLIGATION TO MAKE THE REIMBURSEMENT SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT.  

(ii) PURCHASER SHALL (A) NOTIFY SELLER OF ITS ELECTION TO SEEK THE REMEDY OF SPECIFIC PERFORMANCE ON OR BEFORE THE DATE WHICH IS THIRTY (30) DAYS AFTER THE DATE OF SELLER’S DEFAULT AND (B) INSTITUTE PROCEEDINGS SEEKING SUCH REMEDY ON OR BEFORE THE DATE WHICH IS THIRTY (30) DAYS AFTER THE DATE OF PURCHASER’S NOTICE.

(iii) PURCHASER SHALL BE DEEMED TO HAVE WAIVED ITS ELECTION TO SEEK THE REMEDY OF SPECIFIC PERFORMANCE IF PURCHASER DOES NOT (x) NOTIFY SELLER OF SUCH ELECTION AS PROVIDED IN SECTION 17(a)(ii) (A) HEREINABOVE, OR (y) INSTITUTE PROCEEDINGS, SEEKING SUCH REMEDY AS PROVIDED IN SECTION 17(a)(ii)(B) HEREINABOVE.

(iv) NOTWITHSTANDING ANYTHING IN THIS SECTION 17(a) TO THE CONTRARY, FAILURE OF A CONDITION PRECEDENT SHALL NOT BE A DEFAULT HEREUNDER OR ENTITLE PURCHASER TO ANY REMEDY, AND SHALL ONLY ENTITLE PURCHASER TO A REFUND OF THE EARNEST MONEY AND, IN THE CASE OF A FAILURE OF A CONDITION PRECEDENT CAUSED BY SELLER’S DEFAULT, THE REIMBURSEMENT.

(b)    IN THE EVENT THAT PURCHASER SHOULD FAIL TO CONSUMMATE THIS AGREEMENT FOR ANY REASON, EXCEPT SELLER'S DEFAULT OR THE TERMINATION OF THIS AGREEMENT BY PURCHASER OR SELLER PURSUANT TO A RIGHT TO DO SO UNDER THE TERMS AND PROVISIONS HEREOF, THEN SELLER, AS ITS SOLE AND EXCLUSIVE REMEDY MAY TERMINATE THIS AGREEMENT BY NOTIFYING PURCHASER THEREOF AND RECEIVE OR RETAIN THE EARNEST MONEY AS LIQUIDATED DAMAGES, PROVIDED THAT THIS PROVISION SHALL NOT LIMIT SELLER'S RIGHTS TO PURSUE AND RECOVER ON A CLAIM WITH RESPECT TO ANY SURVIVING OBLIGATIONS.  THE PARTIES AGREE THAT SELLER WILL SUFFER DAMAGES IN THE EVENT OF PURCHASER'S 

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DEFAULT ON ITS OBLIGATIONS.  ALTHOUGH THE AMOUNT OF SUCH DAMAGES IS DIFFICULT OR IMPOSSIBLE TO DETERMINE, THE PARTIES AGREE THAT THE AMOUNT OF THE EARNEST MONEY IS A REASONABLE ESTIMATE OF SELLER'S LOSS IN THE EVENT OF PURCHASER'S DEFAULT.  THUS, SELLER SHALL ACCEPT AND RETAIN THE EARNEST MONEY AS LIQUIDATED DAMAGES BUT NOT AS A PENALTY.  EXCEPT AS OTHERWISE SET FORTH IN THIS SECTION 17(b), SUCH LIQUIDATED DAMAGES SHALL CONSTITUTE SELLER'S SOLE AND EXCLUSIVE REMEDY.  IN THE EVENT SELLER IS ENTITLED TO THE EARNEST MONEY AS LIQUIDATED DAMAGES, PURCHASER AGREES TO TAKE ALL SUCH ACTIONS AND EXECUTE AND DELIVER ALL SUCH DOCUMENTS NECESSARY OR APPROPRIATE TO EFFECT SUCH PAYMENT.  IN THE EVENT SELLER SUCCESSFULLY BRINGS SUIT OR ACTION TO ENFORCE THE FOREGOING PROVISION, SELLER SHALL BE ENTITLED TO RECOVER FROM PURCHASER ITS ACTUAL ATTORNEYS’ FEES, COURT COSTS AND LITIGATION EXPENSES IN CONNECTION THEREWITH.

SELLER AND PURCHASER ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THE PROVISIONS OF THE FOREGOING LIQUIDATED DAMAGES PROVISION AND BY THEIR SIGNATURES IMMEDIATELY BELOW AGREE TO BE BOUND BY ITS TERMS.

SELLER:                        PURCHASER:

HART Grand Reserve, LLC,            RRE Opportunity OP II, LP,
a Delaware limited liability company         a Delaware limited partnership
By:    Resource Real Estate Opportunity
REIT II, Inc., its general partner

By:    /s/ Helen Garrahy                By:    /s/ Shelle Weisbaum        
Name:        Helen Garrahy                Name:    Shelle Weisbaum    
Its:    Senior Vice President                Its:     Senior Vice President    

18.    Miscellaneous.

18.1    Entire Agreement.  This Agreement, together with the exhibits attached hereto, constitute the entire agreement of the parties hereto regarding the purchase and sale of the Property, and all prior agreements, understandings, representations and statements, oral or written, are hereby merged herein.  In the event of a conflict between 

EAST\116250601.1     27

the terms of this Agreement and any prior written agreements, the terms of this Agreement shall prevail.  This Agreement may only be amended or modified by an instrument in writing, signed by the party intended to be bound thereby.

18.2    Time.  All parties hereto agree that time is of the essence in this transaction.  If the time for performance of any obligation hereunder shall fall on a Saturday, Sunday or holiday (national, in the State of Illinois or the state in which the Property is located) such that the obligation hereby can not be performed, the time for performance shall be extended to the next such succeeding day where performance is possible.

18.3  Counterpart Execution.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original.

18.4  Governing Law.  THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF ILLINOIS AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS. 

18.5  Publicity.  Seller and Purchaser hereby covenant and agree that, at all times after the date of execution hereof and continuing after the Closing, unless consented to in writing by the other party, no press release or other public disclosure concerning the monetary terms of this transaction shall be made, and each party agrees to use best efforts to prevent such disclosures of this transaction; provided however, either party shall be permitted without the other party’s consent to (i) issue a press release as long as it does not identify the Purchase Price, the address of the Property or the name of the other party to this Agreement and (ii) make disclosures required by applicable law, including disclosures required to be made to the Securities and Exchange Commission, without the other party’s prior consent.  The provisions of this Section 18.5 shall survive Closing or any termination of this Agreement.

18.6  Recordation.  Purchaser shall not record this Agreement or a memorandum or other notice thereof in any public office without the express written consent of Seller.  A breach by Purchaser of this covenant shall constitute a material default by Purchaser under this Agreement.

18.7  Benefit.  This Agreement is for the benefit of Purchaser and Seller, and except as provided in the indemnities granted by Purchaser in this Agreement and in the Purchase Documents (as defined in Section 19) with respect to the Indemnified Parties listed therein, no other person or entity will be entitled to rely on this Agreement, receive any benefit from it or enforce any provisions of it against Purchaser or Seller.

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18.8  Section Headings.  The Section headings contained in this Agreement are for convenience only and shall in no way enlarge or limit the scope or meaning of the various and several Sections hereof.

18.9  Further Assurances.  Purchaser and Seller agree to execute all documents and instruments reasonably required in order to consummate the purchase and sale herein contemplated.

18.10  Severability.  If any portion of this Agreement is held to be unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect.

18.11  Waiver of Trial by Jury.  Seller and Purchaser, to the extent they may legally do so, hereby expressly waive any right to trial by jury of any claim, demand, action, cause of action, or proceeding arising under or with respect to this Agreement, or in any way connected with, or related to, or incidental to, the dealings of the parties hereto with respect to this Agreement or the transactions related hereto or thereto, in each case whether now existing or hereafter arising, and irrespective of whether sounding in contract, tort, or otherwise.  To the extent they may legally do so, Seller and Purchaser hereby agree that any such claim, demand, action, cause of action, or proceeding shall be decided by a court trial without a jury and that any party hereto may file an original counterpart or a copy of this Section with any court as written evidence of the consent of the other party or parties hereto to waiver of its or their right to trial by jury.

18.12  Independent Counsel.  Purchaser and Seller each acknowledge that: (a) they have been represented by independent counsel in connection with this Agreement; (b) they have executed this Agreement with the advice of such counsel; and (c) this Agreement is the result of negotiations between the parties hereto and the advice and assistance of their respective counsel.  The fact that this Agreement was prepared by Seller's counsel as a matter of convenience shall have no import or significance.  Any uncertainty or ambiguity in this Agreement shall not be construed against Seller because Seller's counsel prepared this Agreement in its final form.

18.13  Governmental Approvals.  Nothing contained in this Agreement shall be construed as authorizing Purchaser to apply for a zoning change, variance, subdivision maps, lot line adjustment, or other discretionary governmental act, approval or permit with respect to the Property prior to the Closing, and Purchaser agrees not to do so.  Purchaser agrees not to submit any reports, studies or other documents, including, without limitation, plans and specifications, impact statements for water, sewage, drainage or traffic, environmental review forms, or energy conservation checklists to any governmental agency, or any amendment or modification to any such instruments or documents prior to the Closing.  

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Purchaser's obligation to purchase the Property shall not be subject to or conditioned upon Purchaser's obtaining any variances, zoning amendments, subdivision maps, lot line adjustment or other discretionary governmental act, approval or permit.

18.14  No Waiver.  No covenant, term or condition of this Agreement other than as expressly set forth herein shall be deemed to have been waived by Seller or Purchaser unless such waiver is in writing and executed by Seller or Purchaser, as the case may be.

18.15  Discharge and Survival.  The delivery of the Deed by Seller, and the acceptance thereof by Purchaser shall be deemed to be the full performance and discharge of every covenant and obligation on the part of Seller to be performed hereunder except the obligations set forth herein which, by their terms, expressly survive Closing.  No action shall be commenced by Purchaser after the Closing on any covenant or obligation except the obligations set forth herein which, by their terms, expressly survive Closing.

18.16  Seller’s Access to Records after Closing.  At no cost to Purchaser, Purchaser shall reasonably cooperate with Seller for a period of two (2) years after Closing to make available Purchaser’s employees and Property records, as Seller may reasonably request, in case of Seller’s need in response to any legal requirement, tax audit, tax return preparation, securities law filing, or litigation threatened or brought against Seller, by allowing Seller and its agents or representatives access, upon reasonable advance written notice (which notice shall identify the nature of the information sought by Seller), at all reasonable times to examine and make copies of any and all instruments, files and records which predate the Closing and which pertain to the Property or Seller; provided, however, that nothing contained in this Section shall require Purchaser to retain any files or records for any particular period of time.  This Section 18.16 shall survive Closing.

19.  Exculpation of Seller and Related Parties.  Notwithstanding anything to the contrary contained in this Agreement or in any exhibits attached hereto or in any documents executed or to be executed in connection herewith (collectively, including this Agreement, said exhibits and all such documents, the "Purchase Documents"), from and after Closing it is expressly understood and agreed by and between the parties hereto that:  (i) the recourse of Purchaser or its successors or assigns against Seller with respect to the alleged breach by or on the part of Seller of any representation, warranty, covenant, undertaking, indemnity or agreement contained in any of the Purchase Documents (collectively, "Seller's Undertakings") shall (x) be deemed waived unless Purchaser has delivered to Seller written notice that Purchaser is seeking recourse under Seller's Undertakings (the “Recourse Notice”) after the Closing Date but prior to the date that is six (6) months after the Closing Date and Purchaser has filed suit with respect to same within one (1) month after the date of Purchaser's delivery to Seller of the Recourse Notice, and (y) be limited to an amount not to exceed $800,000.00 in the aggregate of all recourse of Purchaser under the Purchase 

EAST\116250601.1     30

Documents; and (ii) no personal liability or personal responsibility of any sort with respect to any of Seller's Undertakings or any alleged breach thereof is assumed by, or shall at any time be asserted or enforceable against, Seller or HCM, or against any of their respective direct or indirect shareholders, directors, officers, employees, agents, constituent partners, members, beneficiaries, trustees,  representatives or affiliates, except as provided in (i) above with respect to Seller only.

20.    Bulk Sales Release Letter.  As soon as reasonably practical after the execution and delivery of this Agreement, but no later than five (5) days after the Effective Date, Seller shall request and shall use good faith diligent efforts to obtain a release letter issued to Purchaser by the Illinois Department of Revenue showing that Purchaser has no liability for the payment of any of Seller’s assessed but unpaid taxes, penalties or interest due under the Illinois Income Tax Act, 35 ILCS 120/5j et seq. and any tax, penalty or interest due under the Retailer’s Occupation Tax Act 35 ILCS 5/902 et seq. (the “Bulk Sales Laws”).  Seller shall at or prior to Closing provide Purchaser with evidence of Seller’s timely request for such release letter.  It shall be a condition precedent to the obligation of Purchaser to close the transaction contemplated in this Agreement, that Purchaser receive such release letter from the State of Illinois under the Bulk Sales Laws; provided, however, (i) in the event that prior to Closing, Seller furnishes a certificate or statement (a “Stop Order”) from the Illinois Department of Revenue stating that any tax, penalty or interest is assessed against Seller but unpaid, such condition shall be deemed satisfied and Purchaser may withhold from the Purchase Price an amount equal to the amounts set forth in such Stop Order and deposit such amounts with the Title Company, as escrowee, which shall be held and disbursed by the Title Company pursuant to an escrow agreement to be executed by Purchaser, Seller and the Title Company, as escrowee, on the Closing Date, which escrow agreement shall be in a form reasonably satisfactory to Purchaser and Seller and in compliance with the Bulk Sales Laws and (ii) if the Stop Order or release letter, as the case may be, from the State of Illinois is not received by Closing, then, at Seller’s option, Closing shall be extended until such Stop Order or release is received, or shall occur so long as Seller shall execute an indemnification agreement, in form and substance reasonably satisfactory to Purchaser, indemnifying Purchaser against any claims by the State of Illinois for any unpaid taxes, penalties or interest owed by Seller.

21.    Rule 3-14 Compliance.  Seller shall on or up to forty-five days after Closing provide to Purchaser (at Purchaser’s expense) copies of, or shall provide Purchaser reasonable access to, such factual information as may be reasonably requested by Purchaser, and in the possession or control of Seller, or its property manager or accountants, necessary to enable Purchaser'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 the one (1) immediately preceding calendar year.  Purchaser shall be responsible for all out-of-pocket costs associated with this audit.  Seller shall up to forty-five days after the Closing reasonably cooperate (at no cost to Seller) with Purchaser’s auditor in the conduct of such audit, 

EAST\116250601.1     31

which will include responding to verbal requests for information regarding internal controls and follow-up questions on the financial information provided to the Purchaser.  In addition, on or up to forty-five days after Closing, Seller agrees to provide to Purchaser or any affiliate of Purchaser, if requested by such auditor, historical financial statements for the Property, including (without limitation) income and balance sheet data for the Property.  Without limiting the foregoing, (i) Purchaser or its designated independent or other auditor may audit Seller’s operating statements of the Property, at Purchaser’s expense, and Seller shall on or within forty-five (45) days of Closing provide such documentation as Purchaser or its auditor may reasonably request in order to complete such audit, and (ii) Seller shall on or before Closing furnish to Purchaser such financial and other information as may be reasonably required by Purchaser or any affiliate of Purchaser to make any required filings with the Securities and Exchange Commission or other governmental authority.  Seller shall maintain its records for use under this Section 21 for a period of not less than ninety (90) days after the Closing Date. The provisions of this Section shall survive Closing for a period of ninety (90) days.  Seller’s obligation to deliver to Purchaser its records for use under this Section 21 shall be an on-going condition to Closing for Purchaser’s benefit until Closing.  

    
[signature page follows]

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IN WITNESS WHEREOF, the parties hereto have caused these presents to be made as of the day and year first above stated.

SELLER:

HART GRAND RESERVE, LLC,
a Delaware limited liability company

By:    /s/ Helen Garrahy        
Name:     Helen Garrahy    
Its:     Senior Vice President    

PURCHASER:

RRE OPPORTUNITY OP II, LP,
a Delaware limited partnership

By:    Resource Real Estate Opportunity
REIT II, Inc., its general partner

By:    /s/ Shelle Weisbaum        
Name:    Shelle Weisbaum    
Its:     Senior Vice President    

EAST\116250601.1     33

LIST OF EXHIBITS AND SCHEDULES

Exhibit A    -    Legal Description
Exhibit B    -    Form of Earnest Money Escrow Agreement
Exhibit C    -    Intentionally Deleted
Exhibit D    -    Form of Deed
Exhibit E    -    Form of Bill of Sale
Exhibit F    -    Form of Assignment and Assumption of Leases
		
	Exhibit G
	-    Form of Assignment and Assumption of Storage Lease, Licenses and Permits

Exhibit H    -    Form of Non-Foreign Affidavit
Exhibit I    -    Form of Tenant Notification Letter
Exhibit J    -    Form of Vendor Notification Letter
Schedule 1    -    Rent Roll
Schedule 2    -    List of Service Contracts
Schedule 3    -    List of Litigation
Schedule 3.1        Seller Delivery Items

EAST\116250601.1     34

EXHIBIT A

LEGAL DESCRIPTION

PARCEL 1:

Lot 1 in Lira, being a subdivision of part of the Southwest 1⁄4 of Section 23, Township 38 North, Range 9, East of the Third Principal Meridian, according to the Plat thereof recorded December 11, 1996 as Document Number R96-199128, in DuPage County, Illinois. 

PARCEL 2:

An 11 foot by 11 foot triangle ingress/egress easement granted and located in Plat of Ogden Bend Development recorded February 4, 2002, as Document Number R2002-034662, for the benefit of Parcel 1.  

Address of Property:    504 Chamberlain Lane, Naperville, Illinois 60540
Permanent Index No.:     07-23-312-001

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EXHIBIT B
Form of Earnest Money Escrow Agreement

FIRST AMERICAN TITLE INSURANCE COMPANY

30 N. LaSalle St., St. 2700                    Phone:    (312) 658-3432
Chicago, IL 60602                        Fax:    (714) 913-6833
Attn:  Cindy M. O’Donohue
Escrow No.:____________                Re:    Grand Reserve Apartments
Date:______________2015                    504 Chamberlain Lane
Naperville, Illinois 60540

STRICT JOINT ORDER ESCROW

The accompanying Two Million, Five Hundred Thousand and 00/100 Dollars ($2,500,000.00) is deposited with First American Title Insurance Company as Escrowee to be delivered by it only upon the joint order of the undersigned or their respective legal representatives or assigns.

Escrowee is hereby expressly authorized to disregard, in its sole discretion, any and all notices or warnings given by any of the parties hereto, or by any other person or corporation, but the said Escrowee is hereby expressly authorized to regard and to comply with and obey any and all orders, judgments or decrees entered or issued by any court with or without jurisdiction, and in case the said Escrowee obeys or complies with any such order, judgment or decrees of any court it shall not be liable to any of the parties hereto or any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being entered without jurisdiction or being subsequently reversed, modified, annulled, set aside or vacated.  In case of any suit or proceeding regarding this escrow, to which said Escrowee is or may at any time become a party, it shall have a lien on the contents hereof for any and all out-of-pocket costs, reasonable attorneys' and solicitors' fees, whether such attorneys or solicitors shall be regularly retained or specially employed, and any other reasonable expenses which it may have incurred or become liable for on account thereof, and it shall be entitled to reimburse itself therefore out of said deposit, and the undersigned jointly and severally agree to pay said Escrowee upon demand all such costs, fees and expenses so incurred.

In no case shall the above mentioned deposits be surrendered except on an order signed by the parties hereto, their respective legal representatives or assigns, or in obedience of the process or order of court as aforesaid.

Deposits made pursuant to these instructions shall be invested in federally issued or insured interest bearing instrument(s) on behalf of any party or parties thereto; provided, that any direction to Escrowee for such investment shall be expressed in writing and contain the consent of all the parties to this escrow, and also provided that Escrowee is in receipt of the tax payer's identification number 

EAST\116250601.1     36

and investment forms as required.  Escrowee will, upon request, furnish information concerning its procedures and fee schedules for investment.

Except as to deposits of funds for which Escrowee has received express written direction concerning investment or other handling, the parties hereto agree that the Escrowee shall be under no duty to invest or reinvest any deposits at any time held by it hereunder; and further, that Escrowee may commingle such deposits with other deposits or with its own funds in the manner provided for the administration of funds under the applicable laws of the State in which the funds are held and may use any part or all such funds for its own benefit without obligation to any party for interest derived thereby, if any; provided, however, nothing herein shall diminish Escrowee's obligation to apply the full amount of the deposits in accordance with the terms of this Agreement.  In the event the Escrowee is requested to invest deposits hereunder, Escrowee is not to be held responsible for any loss of principal or interest which may be incurred as a result of making the investment for the purposes of these escrow instructions.

PURCHASER:

RRE Opportunity OP II, LP, 
a Delaware limited partnership

By:    Resource Real Estate Opportunity
REIT II, Inc., its general partner

Signed By:                    
Name:                        
Its:                        
Address: 1845 Walnut St., 18th Floor, Philadelphia, Pennsylvania 19103
Purchaser's Federal Tax Identification Number: 90-0892969

SELLER:

HART Grand Reserve, LLC, 
a Delaware limited liability company

Signed By:                     
Name:                        
Its:                        
Address - c/o Heitman Capital Management LLC, Suite 2500, 191 North Wacker Drive, Chicago, Illinois  60606.

ACCEPTED:

First American Title Insurance Company

By:                         

EAST\116250601.1     37

Name:                        
Its:                        

EAST\116250601.1     38

EXHIBIT C

INTENTIONALLY DELETED

EAST\116250601.1     39

EXHIBIT D

SPECIAL WARRANTY DEED

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This instrument was prepared by and after recording return to:

Richard P. Blessen
FisherBroyles, LLP
345 North Canal Street, Suite C-202
Chicago, Illinois 60606

Mail to:

                
                
                
                

Send Subsequent tax bills to:

                
                
                
                

SPECIAL WARRANTY DEED
This space reserved for Recorder’s use only.

THIS INDENTURE, made as of the       day of _________, 2015 by and between HART Grand Reserve, LLC, a Delaware limited liability company, party of the first part, and [To be formed DE LLC], a Delaware limited liability company, party of the second part, WITNESSETH, that the party of the first part, for and in consideration of the sum of Ten and No/100 Dollars in hand paid by the party of the second part, the receipt whereof is hereby acknowledged, by these presents does GRANT, BARGAIN, SELL, REMISE, RELEASE AND CONVEY unto the party of the second 

EAST\116250601.1     41

part, and to its heirs and assigns, FOREVER, the following described real estate, situated in the County of DuPage and State of Illinois known and described as follows, to wit:

See Exhibit "A" attached hereto and made a part hereof.

Together with all of the party of the first part's right, title and interest in the improvements, hereditaments, easements and appurtenances thereunto belonging, or in any way appertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits thereof, and all the estate, right, title, interest, claim or demand whatsoever, either in law or equity, of, in and to the above described premises, with the improvements, hereditaments, easements and appurtenances (collectively, the "Property"):  TO HAVE AND TO HOLD the Property, unto the party of the second part, its heirs and assigns forever.

And the party of the first part, for itself, and its successors, does covenant, promise and agree, to and with the party of the second part, its heirs and assigns, that it has not done or suffered to be done, anything whereby the said premises hereby granted are, or may be, in any manner encumbered or charged, except as provided on Exhibit B, and WILL WARRANT AND DEFEND against all persons lawfully claiming or to claim the same, by through or under it,  subject to the matters described on Exhibit B, and not otherwise.  
 

[Signature on Following Page]

EAST\116250601.1     42

IN WITNESS WHEREOF, said party of the first part has executed this Special Warranty Deed as of the date first above written.

By:  HART Grand Reserve, LLC, 
        a Delaware limited liability company

By:                        
Name:                        
Its:                         

STATE OF ___________    )
) SS.
COUNTY OF _________    )

I, the undersigned, a Notary Public in and for the County and State aforesaid, DO HEREBY CERTIFY, that the above named _____________ of  HART Grand Reserve, LLC, a Delaware limited liability company, personally known to me to be the same person whose name is subscribed to the foregoing instrument as such _______________, appeared before me this day in person and acknowledged that he signed and delivered the said instrument as his own free and voluntary act and as the free and voluntary act of said limited liability company, for the uses and purposes therein set forth.

Given under my hand and Notary Seal, this       day of ______, 2015.

                            
Notary Public

EAST\116250601.1     43

EXHIBIT A
(TO DEED)
LEGAL DESCRIPTION 

PARCEL 1:

Lot 1 in Lira, being a subdivision of part of the Southwest 1⁄4 of Section 23, Township 38 North, Range 9, East of the Third Principal Meridian, according to the Plat thereof recorded December 11, 1996 as Document Number R96-199128, in DuPage County, Illinois. 

PARCEL 2:

An 11 foot by 11 foot triangle ingress/egress easement granted and located in Plat of Ogden Bend Development recorded February 4, 2002, as Document Number R2002-034662, for the benefit of Parcel 1.  

Address of Property:    504 Chamberlain Lane, Naperville, Illinois 60540
Permanent Index No.:     07-23-312-001

1

EXHIBIT B
(TO DEED)
PERMITTED EXCEPTIONS

2

EXHIBIT E

BILL OF SALE

KNOW ALL MEN BY THESE PRESENTS, that HART Grand Reserve, LLC, a Delaware limited liability company ("Seller") in consideration of Ten and 00/00 Dollars ($10.00), the receipt and sufficiency of which is hereby acknowledged, does hereby sell, assign, transfer, quit claim and set over unto [To be formed DE LLC], a Delaware limited liability company ("Purchaser") all furniture, furnishings, fixtures, equipment and other personal property set forth on Exhibit A attached hereto and made a part hereof  together with any other personal property (collectively, the "Personal Property") located at, on and about the real estate commonly known as the Grand Reserve Apartments and legally described in the Agreement, as hereinafter defined (the "Premises").

TO HAVE AND TO HOLD the Personal Property unto Purchaser and Purchaser's heirs, legal representatives, successors and assigns forever.

ALL WARRANTIES OF QUALITY OF FITNESS FOR A PARTICULAR PURPOSE AND MERCHANTABILITY ARE EXPRESSLY EXCLUDED.  THE PERSONAL PROPERTY SOLD HEREUNDER IS SOLD IN "AS IS" CONDITION WITHOUT ANY REPRESENTATION OR WARRANTY BY SELLER.

Any liability of Seller hereunder shall be limited as set forth in Section 19 of that certain Agreement of Purchase and Sale between Seller and Purchaser dated _____________ ___, 2015 (the "Agreement").

IN WITNESS WHEREOF, Seller has signed this Bill of Sale at Chicago, Illinois this _____ day of ________________, 2015.

SELLER:

By:  HART Grand Reserve, LLC, 
        a Delaware limited liability company

By:                        
Name:                        
Its:                         

3

EXHIBIT A
(BILL OF SALE)
LIST OF PERSONAL PROPERTY

4

EXHIBIT F

ASSIGNMENT AND ASSUMPTION OF LEASES

FOR AND IN CONSIDERATION of the sum of Ten Dollars ($10.00) and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, HART Grand Reserve, LLC, a Delaware limited liability company, having its principal office c/o Heitman Capital Management LLC, 191 North Wacker Drive, Chicago, Illinois 60606 ("Assignor"), hereby sells, transfers, assigns and sets over unto [To be formed DE LLC], a Delaware limited liability company, 1845 Walnut Street, 18th Floor, Philadelphia, Pennsylvania 19103 ("Assignee"), its legal representatives, successors and assigns all of Assignor's right, title and interest in, to and under (a) the leases with the tenants referred to on Exhibit A attached hereto and made a part hereof (the "Leases") affecting the real estate legally described in the Agreement (as hereinafter defined) and commonly known as the Grand Reserve Apartments, Naperville, DuPage County, Illinois (the "Property") and (b) the rent therein referred except, however, that portion of said rent attributable to periods of time prior to the Closing Date (as defined in that certain Agreement of Purchase and Sale by and between Assignor and Assignee dated as of ______, 2015; the “Agreement”). 

Assignee does hereby accept the foregoing Assignment and Assumption of Leases subject to the terms and conditions herein and in the Leases, and does hereby assume, without exculpation, as of the date hereof, and become responsible for and agree to perform, discharge, fulfill and observe all of the obligations, terms, covenants, provisions and conditions under the Leases arising from and after the Closing Date, and Assignee agrees to be liable for the observance and performance thereof as fully as though Assignee was the original landlord or lessor thereunder.  Assignee agrees to protect, defend, indemnify and hold harmless Assignor, its legal representatives, successors and assigns from any and all losses, damages, expenses, fees (including without limitation reasonable attorneys' fees), court costs, suits, judgments, liability, claims and demands whatsoever in law or in equity, incurred or suffered by Assignor, its legal representatives, successors and assigns or any of them arising out of or in connection with the Leases as to events occurring from and after the Closing Date.  Assignor agrees to protect, defend, indemnify and hold harmless Assignee, its legal representatives, successors and assigns from any and all losses, damages, expenses, fees (including, without limitation, reasonable attorneys' fees), court costs, suits, judgments, liability, claims and demands whatsoever in law or in equity, incurred or suffered by Assignee, its legal representatives, successors and assigns or any of them arising out of or in connection with the Leases as to events occurring prior to the Closing Date.

Notwithstanding anything to the contrary contained in this Assignment and Assumption of Leases, it is expressly understood and agreed by and between the parties hereto that any liability of Assignor hereunder shall be limited as set forth in Section 19 of the Agreement.

5

This Assignment and Assumption of Leases shall be binding upon and shall inure to the benefit of Assignor and Assignee and their respective beneficiaries, legal representatives, heirs, successors and assigns.

This Assignment and Assumption of Leases may be executed in counterparts, and as so executed shall constitute one and the same agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Assignment and Assumption of Leases this ____ day of ___________, 2015.

ASSIGNOR:
HART Grand Reserve, LLC,
a Delaware limited liability company

By:                        
Name:                        
Its:                        
            
ASSIGNEE:
[To be formed DE LLC],
a Delaware limited liability company

By:                        
Name:                        
Its:                        

6

EXHIBIT A
(TO ASSIGNMENT AND ASSUMPTION OF LEASES)
LIST OF TENANTS

7

EXHIBIT G

ASSIGNMENT AND ASSUMPTION OF STORAGE LEASE,
LICENSES AND PERMITS

FOR AND IN CONSIDERATION of the sum of Ten Dollars ($10.00) and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, HART Grand Reserve, LLC, a Delaware limited liability company, having its principal office c/o Heitman Capital Management LLC, 191 North Wacker Drive, Chicago, Illinois 60606 ("Assignor"), hereby sells, transfers, assigns and sets over unto [To be formed DE LLC], a Delaware limited liability company, 1845 Walnut Street, 18th Floor, Philadelphia, Pennsylvania 19103 ("Assignee"), its legal representatives, successors and assigns effective as of the Closing Date (as defined in that certain Agreement of Purchase and Sale by and between Assignor and Assignee dated as of ________, 2015; the “Agreement”) all of Assignor's right, title and interest in, to and under (a) those agreements referred to on Exhibit A attached hereto and made a part hereof (the "Storage Lease") affecting the real estate legally described in the Agreement and commonly known as the Grand Reserve Apartments, Naperville, DuPage County, Illinois (the "Property") and (b) all intangible property rights related to the ownership, use, maintenance and operation of the Property (collectively, the “Intangible Property”), including, without limitation, all warranties, guaranties, certificates of occupancy, permits, plans, consents, authorizations, variances, waivers, licenses, certificates, approvals, the right to use the name “Grand Reserve of Naperville” and variations thereof and any other trade names, trademarks, logos and symbols associated with or used in connection with the Property, any and all telephone and facsimile numbers assigned to Seller with respect to the Property, any and all web addresses, domain names and URLs with respect to the Property, and all social media accounts and logo, photo, video and e-brochure files for the Property. 

Assignee does hereby accept the foregoing Assignment and Assumption of Storage Lease, Licenses and Permits and does hereby assume, without exculpation, as of the Closing Date, and become responsible for and agree to perform, discharge, fulfill and observe all of the obligations, terms, covenants, provisions and conditions under the Storage Lease arising from and after the date hereof, and Assignee agrees to be liable for the observance and performance thereof as fully as though Assignee was the original party thereunder.  Assignee agrees to protect, defend, indemnify and hold harmless Assignor, its legal representatives, successors and assigns from any and all losses, damages, expenses, fees (including without limitation reasonable attorneys' fees), court costs, suits, judgments, liability, claims and demands whatsoever in law or in equity, incurred or suffered by Assignor, its legal representatives, successors and assigns or any of them arising out of or in connection with the Storage Lease, as to events occurring from and after the Closing Date.  Assignor agrees to protect, defend, indemnify and hold harmless Assignee, its legal representatives, 

8

successors and assigns from any and all losses, damages, expenses, fees (including, without limitation, reasonable attorneys' fees), court costs, suits, judgments, liability, claims and demands whatsoever in law or in equity, incurred or suffered by Assignee, its legal representatives, successors and assigns or any of them arising out of or in connection with the Storage Lease, as to events occurring prior to the Closing Date.

Notwithstanding anything to the contrary contained in this Assignment and Assumption of Storage Lease, Licenses and Permits, it is expressly understood and agreed by and between the parties hereto that any liability of Assignor hereunder shall be limited as set forth in Section 19 of the Agreement.

This Assignment and Assumption of Storage Lease, Licenses and Permits shall be binding upon and shall inure to the benefit of Assignor and Assignee and their respective beneficiaries, legal representatives, heirs, successors and assigns.

This Assignment and Assumption of Storage Lease, Licenses and Permits may be executed in counterparts, and as so executed shall constitute one and the same agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Assignment and Assumption of Storage Lease, Licenses and Permits this ____ day of _______________, 2015.

ASSIGNOR:
HART Grand Reserve, LLC,
a Delaware limited liability company

By:                        
Name:                        
Its:                        

ASSIGNEE:
[To be formed DE LLC], 
a Delaware limited liability company,
        

By:                        
Name:                        
Its:                        

9

EXHIBIT A
(TO ASSIGNMENT AND ASSUMPTION OF STORAGE LEASE, 
LICENSES AND PERMITS)

LIST OF STORAGE LEASE

10

EXHIBIT H

NON-FOREIGN AFFIDAVIT

Section 1445 of the Internal Revenue Code of 1986, as amended, provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.  To inform the transferee that withholding of tax is not required upon the disposition of a U.S. real property interest by HART Grand Reserve, LLC, a Delaware limited liability company ("Transferor"), the undersigned hereby certifies the following on behalf of the Transferor:

1.    Transferor is not a foreign corporation, foreign partnership, foreign trust, foreign estate, or foreign person (as those terms are defined in the Internal Revenue Code and the Income Tax Regulations promulgated thereunder);

2.    Transferor's U.S. employer identification number is 77-0672767; and

3.    Transferor's address is c/o Heitman Capital Management LLC, 191 North Wacker Drive, Suite 2500, Chicago, Illinois 60606.

Transferor understands that this certification may be disclosed to the Internal Revenue Service by the transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.

Under penalties of perjury the undersigned declares that it has examined this certification and to the best of its knowledge and belief it is true, correct and complete, and it further declares that it has authority to sign this document on behalf of Transferor.

Dated:                        , 2015

Transferor:
HART Grand Reserve, LLC,
a Delaware limited liability company

By:                        
Name:                        
Its:                        

11

EXHIBIT I

Tenant Notification Letter

____________, 2015

Re:    Grand Reserve Apartments, Naperville, Illinois

Dear Tenant:

You are hereby advised that the above referenced property in which you are a tenant was sold and your lease was assigned and transferred effective as of the date of this letter to [To be formed DE LLC], a Delaware limited liability company (the "Purchaser").  Your security deposit and advance rental, if any, has been transferred to the Purchaser, whose address is set forth below.  The above referenced property will be managed by [[MANAGEMENT COMPANY]] and all checks for rent and other charges should be made payable to [[______________]] and forwarded to:

[[MANAGEMENT COMPANY]]
[[Property Address]]

In accordance with the terms of your lease, copies of all future notices to landlord should be sent to:

[To be formed DE LLC]
c/o Resource Real Estate Management, Inc.
[[Property Address]]

If you have any questions or need any additional information, please feel free to contact the management office at [[Telephone Number]].

Sincerely,

SELLER:        PURCHASER:

HART Grand Reserve, LLC,        [To be formed DE LLC],
a Delaware limited liability company        a Delaware limited liability company
By:            By:                    

12

Name:            Name:                    
Its:            Its:                    

13

EXHIBIT J

Vendor Notification Letter

               , 2015

VIA CERTIFIED MAIL - RETURN RECEIPT REQUESTED

[[Vendor]]

RE:    Grand Reserve Apartments, Naperville, Illinois

Gentlemen:

This is to advise you that the above referenced property was sold to [To be formed DE LLC], a Delaware limited liability company (the "Purchaser").  As part of the sale, your contract has been assigned to Purchaser, and any goods, services or utilities supplied to the property subsequent to the date of this letter shall be for its account.  The above referenced property will be managed by [[Management Company]] and all future invoices and correspondence and any and all Notices to Purchaser should be sent to:

[[ADDRESS]]

SELLER:        PURCHASER:

HART Grand Reserve, LLC,        [To be formed DE LLC],
a Delaware limited liability company    a Delaware limited liability company

By:            By:        
Name:        Name:    
Its:            Its:        

14

SCHEDULE 1

RENT ROLL

[See Attached]

15

SCHEDULE 2

LIST OF SERVICE CONTRACTS

1.    Jetter Services, LLC dated January 1, 2015 (pest control)

2.    Lupe Lawn Irrigation dated March 16, 2015 (landscaping)

3.    Waste Management of Illinois, Inc. dated January 22, 2015 (waste removal)

4.    Lease Agreement with LEAF Capital Funding, LLC dated August 22, 2013 (copier     lease)

16

SCHEDULE 3

LIST OF LITIGATION

-None-

17

SCHEDULE 3.1

SELLER DELIVERY ITEMS

		
	1.
	Monthly bank statements and reconciliations for the Property beginning December 2014;

		
	2.
	Trial balances for the year ended 2013;

		
	3.
	Balance sheet at 12/31/13; 

		
	4.
	Accounts payable and receivable detail listing/aging reports at 12/31/14;

		
	5.
	Monthly income statements for the Property beginning December 2013 and through date of sale;

		
	6.
	Monthly bank statements for the Property beginning December 2014 through date of sale;

		
	7.
	Reconciliations to aforementioned bank statements;

		
	8.
	Monthly rent rolls for December, 2013 through month of sale;

		
	9.
	Trial balances for the years ended 2014 and last date the Seller owns the Property;

		
	10.
	Balance sheet at 12/31/14, and the last month the Seller owns the Property;

		
	11.
	Account payable and account receivable detail listing/aging reports at 12/31/14 and date of sale;

		
	12.
	Check registers and payables registers for January 2014, February 2014, January, 2015, and February, 2015;

		
	13.
	Copy of Management Agreement;

		
	14.
	General ledger for 2013 and 2014;

		
	15.
	Copies of all insurance invoices for past 12 months;

		
	16.
	Copies of all real estate tax bills for 2013 and 2014 as well as any assessments or tax bills for 2015;

18

		
	17.
	Contact person at the property management company with whom the auditors can discuss internal control procedures and walkthrough information;

		
	18.
	Standard Lease form with respect to the Property;

		
	19.
	Copies of all property utility bills for past 12 months;

		
	20.
	On-Site access to make copies and/or review the Tenant Leases including any and all modifications, supplements or amendments thereto and all tenant lease files;

		
	21.
	Current resident ledger report as well as a report on the date of sale;

		
	22.
	Current notices to vacate report;

		
	23.
	A schedule of all tenant deposits in the form customarily utilized by Seller;

		
	24.
	Contracts relating to the maintenance and operation of the Property and access at the Property to all maintenance and service logs for the Property;

		
	25.
	To the extent available at the Property, copies of or access to any and all site plans, as-built, boundary and topographical surveys of the Property, and architectural drawings, plans and specifications with respect to the Property;

		
	26.
	Insurance loss runs during the last 2 years of Seller’s ownership of the Property;

		
	27.
	To the extent available, copies of all guaranties or warranties currently in effect related to the roof or any structure or operating system at the Property;

		
	28.
	A list of employee units and model/office units, and employee rental and discount information;

		
	29.
	A schedule of capital improvements completed during the past 3 years of Seller’s ownership;

		
	30.
	Documentation related to eviction activity for the past 12 months as well as the status of all evictions currently in process;

		
	31.
	List of all personal property to be conveyed with the Property;

		
	32.
	To the extent available, the most recent tax, license fee and permit bills and copies of all such licenses and permits, including the certificates of occupancy;

19

		
	33.
	List of current employees of the Property and payroll;

		
	34.
	All environmental reports, termite inspections or warranties, to the extent available and in the Seller’s possession, which relate to its Property and were prepared for Seller by third parties;

		
	35.
	The most recent title and survey in Seller’s possession, which relate to its Property and were prepared for Seller by third parties;

		
	36.
	Monthly occupancy and turnover percentages for 2014 and 2015;

		
	37.
	Summary of bad debt written off in 2014 and 2015; and

		
	38.
	Copies of tenant utility billing reports (RUBS) for the past 12 months, if applicable. 

4838-2350-2890, v.  8

20

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