Document:

Unassociated Document

    REVOLVING
CREDIT AND SECURITY AGREEMENT

    

    THIS
REVOLVING CREDIT AND SECURITY AGREEMENT (this “Agreement”) dated as
of September 14, 2010 (this “Agreement”) is by and
between SYNTHEMED, INC., a Delaware corporation (the “Borrower”), and
PATHFINDER, LLC, a Massachusetts limited liability company (the “Lender”).

    

    WHEREAS,
the Borrower may, from time to time request Revolving Loans from the Lender, and
the parties wish to provide for the terms and conditions upon which such
Revolving Loans shall be made;

    

    NOW
THEREFORE, in consideration of any Revolving Loan hereafter made to the Borrower
by the Lender, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the Borrower, the parties hereto
agree as follows:

    

    ARTICLE
1

    DEFINITIONS

    

    
      	
               
      

            	
              1.1

            	
              Defined
      Terms.  As used in this Agreement, the following terms have
      the meanings specified below:

            

    

    

    
      “Account”, “Account
Debtor”, “Chattel
Paper”, “Commercial
Tort Claims”,
“Deposit
Accounts”, “Documents”, “Electronic
Chattel Paper”,
“Equipment”, “General
Intangibles”,
“Instruments”,
“Inventory”,
“Investment
Property”, “Letter-of-Credit
Rights”, “Proceeds”,  “Supporting
Obligations” and “Tangible
Chattel Paper” shall have the respective meanings assigned to such terms
in the UCC.

    

    

    “Borrower”
has the meaning set forth in the first paragraph of this Agreement.

    

    “Borrowing”
means a Revolving Loan made by the Lender on a single date under this
Agreement.

    

    “Business
Day” means any
day that is not a Saturday, Sunday or other day on which commercial banks in New
York City, New York are authorized or required by law to remain
closed.

    

    “Change of
Control” means
the occurrence of any of the following in one or a series of related
transactions: (i) an acquisition after the date hereof by an individual or legal
entity or “group” (as described in Rule 13d-5(b)(1) under the Exchange Act) of
more than one-half of the voting rights or equity interests in the Borrower;
(ii) a merger or consolidation of the Borrower or any Subsidiary or a sale or
distribution of substantially all of the assets of the Borrower in one or a
series of related transactions, unless following such transaction or series of
transactions, the holders of the Borrower's securities prior to the first such
transaction continue to hold at least two-thirds of the voting rights and equity
interests in the surviving entity or acquirer of such assets; or (iii) a
recapitalization, reorganization or other transaction involving the Borrower or
any Subsidiary that constitutes or results in a transfer of more than one-half
of the voting rights or equity interests in the Borrower, unless following such
transaction or series of transactions, the holders of the Borrower's securities
prior to the first such transaction continue to hold at least two-thirds of the
voting rights and equity interests in the surviving entity.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    “Closing
Date” means the date set forth in Section
6.1.

    

    “Collateral” has the meaning assigned to
such term in Section
3.1.

    

    “Common
Stock” means the common stock of the Borrower, par value $.001 per share,
or any other securities into which such common stock may hereafter be
reclassified.

    

    “Default”
means any event or condition which constitutes an Event of Default or which upon
notice, lapse of time or both would, or could reasonably be expected to, unless
cured or waived, become an Event of Default.

    

    “Event of
Default” has the meaning assigned to such term in Section
8.1.

    

    “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

    

    “GAAP”
means United States Generally Accepted Accounting Principles.

    

    “Lender”
has the meaning set forth in the first paragraph of this Agreement.

    

    “Material
Adverse Effect” means any of (i) a material and adverse effect on the
legality, validity or enforceability of this Agreement or (ii) a material and
adverse effect on the results of operations, assets, properties, prospects,
business or condition (financial or otherwise) of the Borrower and its
Subsidiaries, taken as a whole.

     

    “Obligations”
means any and all obligations and liabilities of the Borrower now or hereafter
arising under this Agreement and all of the other Transaction Documents, whether
for principal, interest, fees, expenses, indemnities or otherwise, and whether
primary, secondary, direct, indirect, contingent, fixed or otherwise (including
obligations of performance).

     

    “Patents
and Trademarks”
has the meaning assigned to such term in Section 4.10.

     

    “Person” shall mean any individual,
sole proprietorship, partnership, joint venture, trust, unincorporated
organization, association, corporation, limited liability company, institution,
entity, party, or foreign or United States government (whether federal, state,
county, city, municipal or otherwise), including, without limitation, any
instrumentality, division, agency, body or department thereof.

     

    “Regulatory
Permits” and “Regulatory
Applications”
have the meanings assigned to such terms in Section
4.9.

    

    “Revolving
Credit Commitment” has the meaning set forth in Section
2.1.

    

    “Revolving
Credit Note(s)” means the promissory notes, substantially in the form
of Exhibit A
annexed hereto, issued by the Borrower in favor of the Lender pursuant to Section
2.1(f).

    

    “Revolving
Credit Period” means the period from and including the Closing Date to
the earlier of (a) December 31, 2010 or (b) such earlier date as the Lender
shall determine, in its sole and absolute discretion, upon at least five
(5) Business Days’
prior written notice to the Borrower.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    “Revolving
Loan” means a loan made by the Lender pursuant to Section
2.1.

    

    “SEC”
means the United States Securities and Exchange Commission.

    

    “Securities
Act” means the Securities Act of 1933, as amended.

    

    “Subsidiary”
means any “subsidiary” of the Borrower as defined in Rule 1-02(x) of Regulation
S-X promulgated by the SEC under the Exchange Act.

    

    “Transaction
Documents” means this Agreement, the Revolving Credit Notes, the
intellectual property security agreement referred to in Section 7.3, and all
other agreements, instruments and documents executed in connection therewith, in
each case as the same may at any time be amended, supplemented, restated or
otherwise modified and in effect.

    

    “UCC”
means the Uniform Commercial Code as the same may be in effect on the date
hereof and from time to time in the State of New York; provided, that if by
reason of mandatory provisions of law, the perfection or the effect of
perfection or non-perfection of the security interests in any Collateral or the
availability of any remedy hereunder is governed by the Uniform Commercial Code
as in effect on or after the date hereof in any other jurisdiction, “UCC” means
the Uniform Commercial Code as in effect in such other jurisdiction for the
purposes of the provisions hereof relating to such perfection or effect of
perfection or non-perfection or availability of such remedy.

    

    ARTICLE
2

    THE REVOLVING CREDIT
FACILITY

    

    
      	
               
      

            	
              2.1

            	
              Revolving
      Loans.

            

    

    

    (a)          Revolving Credit
Commitment.  Subject to and upon the terms and conditions set forth
herein, Lender, at the request of the Borrower, agrees to lend to the Borrower,
from time to time during the Revolving Credit Period, such Revolving Loans as
may be requested by the Borrower (i) in an amount equal to wages and payroll
taxes for Borrower’s employees for each pay period or portion thereof during
which Lender’s funding commitment hereunder is in effect and (ii) such
additional amounts as the Lender, in its absolute and sole discretion, shall
approve (the “Revolving Credit
Commitment”).  Within the foregoing limits and subject to the terms
and conditions set forth herein, the Borrower may borrow, repay and reborrow the
Revolving Loans.

    

    (b)         Funding of Revolving
Loans.  The Revolving Loans shall be disbursed, as the Borrower
shall direct, upon the satisfaction of the conditions set forth in Sections 6.1 and 6.2 hereof.  The
Borrower shall deliver to the Lender a written request for a Revolving Loan not
later than five Business Days prior to the proposed funding date thereof;
provided, however, that the initial funding hereunder shall occur in the amount
of $55,776 within one Business Day of the date hereof.  After the initial
funding, each such written request required under this Section 2.1(b) shall
specify the requested amount of the proposed Borrowing, a description of the use
of proceeds and the proposed borrowing date.

    
      
         

      

      
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    (c)          Interest on Revolving
Loans.  Each Revolving Loan shall bear interest at the annual rate
of 6%. Accrued interest on each Revolving Loan shall be payable in arrears on
the date on which the applicable principal amount becomes due and payable as set
forth under Section
2.1(d) below.  All interest shall be computed on the basis of a year
of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).   Upon and after
the occurrence of an Event of Default, each Revolving Loan shall bear interest
on its principal amount outstanding from time to time at a rate per annum of 10%
(the "Default
Rate").   In no contingency or event whatsoever shall interest
charged hereunder or under any Revolving Credit Note, however such interest may
be characterized or computed, exceed the highest rate permissible under any law
which a court of competent jurisdiction shall, in a final determination, deem
applicable hereto.  In the event that such a court determines that the
Lender has received interest hereunder in excess of the highest rate applicable
hereto, the Lender shall promptly refund such excess interest to the
Borrower.

    

    (d)          Repayment of Revolving
Loans.  The outstanding principal amount of each Revolving Loan
and all accrued and unpaid interest thereon shall become due and payable on
demand on the earlier to occur of (i) the first anniversary of each Revolving
Loan and (ii) the occurrence of a Change of Control, in either case if not
sooner paid in full as provided in this Agreement or in the Revolving Credit
Note applicable thereto.  Any and all such payments hereunder and under any
Revolving Credit Note (including, without limitation, any prepayments pursuant
to Section
2.3) shall be made to the Lender at such place as the Lender directs the
Borrower in writing.  Any and all payments hereunder and under any
Revolving Credit Note (including, without limitation, any prepayments pursuant
to Section 2.3)
shall be applied first to accrued and unpaid interest and the remainder to
principal unless the Borrower otherwise directs in writing at the time of such
payment.   

    

    (e)          Loan Accounts.
 Lender shall maintain an account evidencing the indebtedness of the
Borrower to Lender resulting from each Revolving Loan made by Lender, including
the amounts of principal and interest payable and paid to Lender from time to
time hereunder.  Lender shall maintain accounts in which it shall record
the amount of each Revolving Loan made hereunder, the amount of any principal or
interest due and payable or to become due and payable from the Borrower to
Lender hereunder and the amount of any sum received by the Lender hereunder.
 All such accounts maintained by Lender pursuant to this Section 2.1(e) shall
be conclusive absent manifest error of the amount of the Revolving Loans made by
the Lender to the Borrower and the interest and payments thereon.  Any
failure to so record or any error in doing so shall not limit or otherwise
affect the obligation of the Borrower hereunder to pay any amount owing with
respect to the Obligations.  

    

    (f)          Revolving Credit
Note.  On the date of each Revolving Loan, the Borrower shall
execute and deliver to Lender a Revolving Credit Note, substantially in the form
attached hereto as Exhibit A, in the
aggregate principal amount of such Revolving Loan.

    

    2.2        Funding of
Borrowings.

    

    Lender
shall make each Revolving Loan to be made by it hereunder on the proposed
funding date thereof by wire transfer of immediately available funds to the
account of Borrower most recently designated by it for such purpose by notice to
the Lender in accordance with Section 2.1(b).
 

    

    
      	
               
      

            	
              2.3

            	
              Prepayment of
      Revolving Loans.

            

    

    

    The
Borrower shall have the right at any time and from time to time to prepay any
Revolving Loan in whole or in part.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    ARTICLE
3

    SECURITY
INTEREST

    

    3.1.        Grant of
Security Interest.
 As security for the payment of all Revolving Loans now or in the
future made by the Lender hereunder and for the payment or other satisfaction of
all other Obligations, the Borrower hereby assigns to Lender and grants to the
Lender a continued security interest in the following property, whether now
owned, existing, acquired or arising and wherever now or hereafter located
(collectively, the “Collateral”):

    

    (a)          all
Accounts and cash;

    

    (b)          all
Chattel Paper (including, without limitation, all Electronic Chattel Paper and
all Tangible Chattel Paper), Equipment, Instruments, Documents and General
Intangibles (including, without limitation, all patents, patent applications,
trademarks and trademark applications (including without limitation the Patents
and Trademarks), trade names, trade secrets, goodwill, copyrights, copyright
applications, governmental and regulatory registrations and permits and
approvals, and applications with respect thereto (including without limitation
the Regulatory Permits and the Regulatory Applications), licenses, software,
franchises, customer lists, tax refund claims, claims against carriers and
shippers, guarantee claims, contract rights, payment intangibles, security
interests, security deposits and rights to indemnification);

    

    (c)          all
Inventory;

    

    (d)          all
Investment Property;

    

    (e)          all
Deposit Accounts and all other demand, deposit, time, savings, cash management,
passbook and similar accounts maintained by the Borrower with any Person and all
monies, securities, Instruments and other investments deposited or required to
be deposited in any of the foregoing;

    

    (f)          all
Letter-of-Credit Rights (whether or not the respective letter of credit is
evidenced by a writing);

    

    (g)          all
Commercial Tort Claims;

    

    (h)          all
Supporting Obligations; and

    

    (i)          all
additions and accessions to, substitutions for, and replacements, products and
Proceeds of the foregoing property, including, without limitation, proceeds of
all insurance
policies insuring the foregoing property, and all of the Borrower’s books and
records relating to any of the foregoing and to the Borrower’s
business.

    

    Notwithstanding
anything to the contrary contained herein, (i) the term "Collateral" shall
exclude any of the foregoing in which the Borrower is contractually precluded
from granting a security interest and (ii) the Borrower shall be free at any
time prior to an Event of Default to sell any part or all of the Collateral free
and clear of any security interest of the Lender hereunder, provided that the
Lender shall continue to retain a security interest hereunder in the Proceeds
thereof.

    
      
         

      

      
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    3.2.        Preservation
of Collateral and Perfection of Security Interests Therein.  The Borrower shall, at
the Lender’s request, at any time and from time to time, authenticate, execute
and deliver to the Lender such financing statements, documents and other
agreements and instruments (and pay the cost of filing or recording the same in
all public offices deemed necessary or advisable by the Lender) and do such
other acts and things or cause third parties to do such other acts and things as
the Lender may deem necessary or desirable in its sole discretion in order to
establish and maintain a valid, attached and perfected security interest in the
Collateral in favor of the Lender to secure payment of the Obligations, and in
order to facilitate the collection of the Collateral.  The Borrower
irrevocably hereby makes, constitutes and appoints the Lender (and all persons
designated by the Lender for that purpose) as the Borrower’s true and lawful
attorney and agent-in-fact to execute and file such financing statements,
documents and other agreements and instruments and do such other acts and things
as may be necessary to preserve and perfect the Lender’s security interest in
the Collateral.  The Borrower further agrees that a carbon, photographic,
photostatic or other reproduction of this Agreement or of a financing statement
shall be sufficient as a financing statement.  The Borrower further
ratifies and confirms the prior filing by the Lender of any and all financing
statements which identify the Borrower as debtor, Lender as secured party and
any or all Collateral as collateral.

    

    ARTICLE
4

    REPRESENTATIONS AND
WARRANTIES OF BORROWER

    

    The
Borrower represents and warrants to the Lender that:

    

    4.1         Organization,
Good Standing and Qualification.  The Borrower and each
of the Subsidiaries is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware and each has all requisite
corporate power and authority to carry on its business as presently conducted or
proposed to be conducted. The Borrower and the Subsidiaries are duly
qualified to transact business and are in good standing in each jurisdiction in
which the failure so to qualify would have a Material Adverse
Effect.

    

    4.2         Authorization.
 The Borrower has full power and authority to enter into this Agreement,
all corporate action on the part of the Borrower necessary for the
authorization, execution and delivery of this Agreement and the other
Transaction Documents and the authorization, issuance and delivery of the
Revolving Credit Notes has been taken, and each Transaction Document, when
executed and delivered by the Borrower, and assuming due execution and delivery
by the Lender (as appropriate), shall constitute a valid and legally binding
obligation of the Borrower, enforceable against the Borrower in accordance with
its terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, or other laws of general
application relating to or affecting the enforcement of creditors’ rights
generally, and as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    4.3         No
Conflicts.  Neither the Borrower nor any Subsidiary is  in
default under any agreement to which it is a party, the effect of which will
materially adversely affect performance by the Borrower of its obligations
pursuant to and as contemplated by the terms and provisions of this Agreement or
any of the Transaction Documents.  The execution, delivery and performance
of each Transaction Document and any other documents to be executed and
delivered by the Borrower and the consummation by the Borrower of the
transactions contemplated thereby do not and will not (i) conflict with or
violate any provision of the Borrower's or any Subsidiary's certificate or
articles of incorporation, bylaws or other organizational or charter documents,
or (ii) conflict with, or constitute a Default (or an event that with notice or
lapse of time or both would become a Default) under, or give to others any
rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Borrower or Subsidiary debt or otherwise) or other
understanding to which the Borrower or any Subsidiary is a party or by which any
property or asset of the Borrower or any Subsidiary is bound or affected, or
(iii) result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority
to which the Borrower or a Subsidiary is subject (including federal and state
securities laws and regulations), or by which any property or asset of the
Borrower or a Subsidiary is bound or affected; except in the case of each of
clauses (ii) and (iii), such as could not, individually or in the aggregate,
have or reasonably be expected to result in a Material Adverse Effect.
 

    

    4.4         Filings,
Consents and Approvals.  The Borrower is not required to obtain any
consent, waiver, authorization or order of, give any notice to, or make any
filing or registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the
execution, delivery and performance by the Borrower of the Transaction
Documents, other than (i) filings required by the Exchange Act and (ii) those
that have been made or obtained prior to the date of this
Agreement.

    

    4.5         SEC
Reports; Financial Statements.  The Borrower has filed all reports
and statements required to be filed by it under the Securities Act and the
Exchange Act since the beginning of the Borrower’s most recently completed
fiscal year, including pursuant to Section 13(a) or 15(d) thereof (the foregoing
materials being collectively referred to herein as the "SEC
Reports" and, together with the Schedules to this Agreement (if any), the
 "Disclosure
Materials").  As of their respective dates, the SEC Reports filed by
the Borrower with the SEC complied in all material respects with the
requirements of the Securities Act and the Exchange Act and the rules and
regulations of the SEC  promulgated thereunder, and none of the SEC
Reports filed by the Borrower with the SEC,  when filed, contained
any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.  The financial statements of the Borrower included in the SEC
Reports comply in all material respects with applicable accounting requirements
and the rules and regulations of the SEC with respect thereto as
in effect at the time of filing.  Such financial statements have been
prepared in accordance with GAAP applied on a consistent basis during the
periods involved, except as may be otherwise specified in such financial
statements or the notes thereto, and fairly present in all material respects the
financial position of the Borrower and its consolidated Subsidiaries as of and
for the dates thereof and the results of operations and cash flows for the
periods then ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.

    
      
         

      

      
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    4.6         Material
Changes.  Since the date of the latest audited financial statements
included within the SEC Reports, except as set forth in the SEC Reports, (i) the
Borrower has not altered its method of accounting or the identity of its
auditors and (ii) the Borrower has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital
stock.  

    

    4.7         Litigation.
 There is no action, suit or proceeding pending or threatened against the
Borrower or any of the Subsidiaries which (i) adversely affects or challenges
the legality, validity or enforceability of any Transaction Document or (ii)
could, if there were an unfavorable decision, individually or in the aggregate,
have or reasonably be expected to result in a Material Adverse
Effect.  There has not been, and to the knowledge of the Borrower,
there is not pending any investigation by the SEC involving the Borrower or any
current or former director or officer of the Borrower (in his or her capacity as
such).  

    

    4.8         Compliance.
 Neither the Borrower nor any Subsidiary (i) is in default under or in
violation of (and no event has occurred that has not been waived that, with
notice or lapse of time or both, would result in a default by the Borrower or
any Subsidiary under), nor has the Borrower or any Subsidiary received notice of
a claim that it is in default under or that it is in violation of, any
indenture, loan or credit agreement or any other agreement or instrument to
which it is a party or by which it or any of its properties is bound (whether or
not such default or violation has been waived), (ii) is in violation of any
order of any court, arbitrator or governmental body, or (iii) is or has been in
violation of any statute, rule or regulation of any governmental authority,
including without limitation all foreign, federal, state and local laws relating
to taxes, environmental protection, occupational health and safety, product
quality and safety and employment and labor matters, except in each case as
could not, individually or in the aggregate, have or reasonably be expected to
result in a Material Adverse Effect.

    

    4.9         Regulatory
Permits.  The Borrower and the Subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities (collectively the “Regulatory
Approvals”) and has filed applications for all such additional certificates,
authorizations and permits (the “Regulatory Applications”) with such authorities
necessary to conduct their respective businesses, except where the failure to
possess such permits could not, individually or in the aggregate, have or
reasonably be expected to result in a Material Adverse Effect, and neither the
Borrower nor any Subsidiary has received any notice of proceedings relating to
the revocation or modification of any such permits. Schedule 4.9 attached hereto
contains a complete and accurate list of the Regulatory Permits and the
Regulatory Approvals.

    

    4.10       Patents
and Trademarks.  The Borrower and the Subsidiaries have, or have
rights to use, all patents, patent applications, trademarks, trademark
applications and service marks and service mark applications, trade names, and
brand names (collectively the “Patents and Trademarks”) copyrights, licenses and
other similar rights that are necessary or material for use in connection with
their respective businesses as described in the SEC Reports and which the
failure to so have could, individually or in the aggregate, have or reasonably
be expected to result in a Material Adverse Effect (collectively, the "Intellectual
Property Rights").  Neither the Borrower nor any Subsidiary has
received a written notice that the Intellectual Property Rights used by the
Borrower or any Subsidiary violates or infringes upon the rights of any Person.
 To the knowledge of the Borrower, all such Intellectual Property Rights
are enforceable and there is no existing infringement by another Person of any
of the Intellectual Property Rights.  Neither the Borrower nor any
Subsidiary is in default under or in relation to any license, sublicense,
covenant or agreement with respect to the Intellectual Property
Rights.  Schedule 4.10 attached hereto
contains a complete and accurate list of the Patents and
Trademarks.

    
      
         

      

      
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    4.11       Insurance.
 The Borrower and the Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as
are prudent and customary in the businesses in which the Borrower and the
Subsidiaries are engaged.  The Borrower has no reason to believe that,
other than as a result of its financial condition, it will not be able to renew
its and the Subsidiaries’ existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary
to continue its business on terms consistent with market for the Borrower’s and
such Subsidiaries’ respective lines of business.

    

    4.12       Investment
Company Act.  The Borrower is not, and is not an affiliate of, and
immediately following the Closing will not have become, an “investment company”
within the meaning of the Investment Company Act of 1940, as
amended.

    

    4.13       Certain
Fees.  No brokerage or finder’s fees or commissions are or will be
payable by the Borrower to any broker, financial advisor or consultant, finder,
placement agent, investment banker, bank or other Person with respect to the
transactions contemplated by this Agreement.  The Lender shall have no
obligation with respect to any fees or with respect to any claims (other than
such fees or commissions owed by the Lender pursuant to written agreements
executed by the Lender, which fees or commissions shall be the sole
responsibility of the Lender) made by or on behalf of other Persons for fees of
a type contemplated in this Section that may be due in connection with the
transactions contemplated by this Agreement.

    

    4.14       Taxes.
 The Borrower has filed all state and federal income tax returns that are
required to be filed, and has paid all taxes shown to be due on such returns and
such assessments received by the Borrower to the extent that the same had become
due.

    

    4.15       Representations
and Warranties to be Continuing.  All of the foregoing
representations and warranties will be true at the date of the initial
disbursement and at the dates of all subsequent disbursements of the Revolving
Loans.  All representations, warranties, covenants, and agreements made
herein or in any certificate or other document delivered to the Lender by or on
behalf of the Borrower shall be deemed to have been relied upon by the Lender
notwithstanding any investigation heretofore or hereafter made by the Lender or
on its behalf, and shall survive the making of any or all of the disbursements
contemplated hereby and shall continue in full force and effect as long as there
remains unpaid any obligation to the Lender hereunder or under any of the
Transaction Documents.

    

    ARTICLE
5

    REPRESENTATIONS AND
WARRANTIES OF THE LENDER

    

    The
Lender hereby represents and warrants to the Borrower that:

    
      
         

      

      
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    5.1         Authorization.  The Lender has full
power and authority to enter into this Agreement.  This Agreement, when
executed and delivered by the Lender, will constitute a valid and legally
binding obligation of the Lender, enforceable in accordance with its terms,
except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, and any other laws of general application
affecting enforcement of creditors’ rights generally, and as limited by laws
relating to the availability of a specific performance, injunctive relief, or
other equitable remedies.

    

    5.2         Disclosure
of Information.
 The Lender has had an opportunity to discuss the Borrower’s business,
management, financial affairs and the terms and conditions of the offering of
the Revolving Credit Notes with the Borrower’s management and have had an
opportunity to review the Borrower’s facilities and has had all questions
related thereto answered to the full satisfaction of the Lender.  The
Lender understands that such discussions and any written information delivered
by the Borrower to the Lender were intended to describe the aspects of the
Borrower’s business which the Lender believe to be material. The Lender
understands that no Person other than the Borrower has been authorized to make
any representation and if made, such representation may not be relied on.
 The Borrower has not, however, rendered any investment advice to the
Lender with respect to the suitability of the purchase of any of the Revolving
Credit Notes or an investment in the Borrower.  

     

    5.3         Brokers.  No finder or broker
was or is engaged by the Lender in connection with this Agreement.
 

     

    ARTICLE
6

    CONDITIONS

    

    6.1         Closing
Date.  The Closing Date shall be the date on which each of the
following conditions is satisfied or waived:

    

    (a)          Revolving Credit
Note.  The Lender shall have received the duly completed and
executed Revolving Credit Note in the amount of the initial
Borrowing.

    

    (b)          Authorization
Documents.  The Lender shall have received a certificate of the
Borrower’s Secretary certifying and attaching resolutions of its board of
directors (or similar governing body) approving and authorizing the Borrower’s
execution, delivery and performance of the Transaction Documents and the
transactions contemplated thereby.

    

    (c)          UCC Financing
Statements.  The Lender shall have received each document (including
Uniform Commercial Code financing statements) required hereunder or under law or
deemed necessary by the Lender filed, registered or recorded in order to create
in favor of the Lender, a perfected lien on the Collateral, including without
limitation the Financing Statement attached hereto as Exhibit B for filing with the
Delaware Secretary of State.

    

    (d)          Necessary Governmental
Permits, Licenses and Authorizations and Consents; Etc.  The
Borrower shall have obtained all permits, licenses, authorizations and consents
necessary or advisable in connection with the transactions contemplated by this
Agreement and each of the foregoing shall be in full force and effect, in each
case other than those the failure to obtain or maintain which, either
individually or in the aggregate, would not reasonably be expected to have a
Material Adverse Effect.

    

    6.2         Each
Borrowing.
 The obligation of Lender to make a Revolving Loan on the occasion
of any Borrowing, is subject to the satisfaction of the following
conditions:

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    (a)          Representations and
Warranties; Covenants.  (i) The representations and warranties of
the Borrower set forth in Article 5 of this
Agreement shall be true and correct in all material respects on and as of the
date of such Borrowing (or, if any such representation or warranty is expressly
stated to have been made as of a specific date, such representation or warranty
shall be or have been true and correct as of such specific date); and (ii) the
Borrower shall be in compliance with each of the covenants set forth in Article 7 of this
Agreement.

    

    (b)          No Defaults.  At
the time of, and immediately after giving effect to, such Borrowing, no Default
shall have occurred and be continuing.

    

    (c)          No Material Adverse
Effect.  At the time of, and immediately after giving effect to,
such Borrowing, there shall be no facts, events or circumstances then existing
and nothing shall have occurred which shall have come to the attention of the
Lender which constitutes a Material Adverse Effect.

    

    (d)          Security
Requirements.  Other than with respect to the initial Borrowing
hereunder, the Borrower shall have satisfied (or the Lender, in its sole
discretion, has waived), each of the requirements set forth in Section 7.3
hereto.

    

    

    (e)          Revolving Credit
Note.  The Lender shall have received a duly completed and executed
Revolving Credit Note with respect to the requested Revolving Loan in the amount
of the requested Borrowing, in form and substance satisfactory to the
Lender.

    

    (f)          Other Documents.
 The Lender shall have received such other documents as the Lender may
reasonably request.

    

    (g)          Officer's
Certificate.  The Lender shall have received, duly executed by an
authorized officer of the Company, a certificate certifying that all covenants,
agreements and obligations required by Section 6.2 of this
Agreement to be performed or complied with by the Company prior to or at a
Borrowing, have been performed or complied with.

    

    ARTICLE
7

    COVENANTS

    

    The
Borrower covenants and agrees with the Lender that so long as the Revolving
Credit Note shall be outstanding:  

    

    7.1         Books and
Records, Inspection Rights.  The Borrower shall
keep proper books of records and accounts in which entries are made of all
dealings and transactions in relation to its business and activities which
fairly record such transactions and activities.  The Borrower shall permit
any representatives designated by the Lender to visit and inspect its
properties, to examine and make extracts from its books and records, and to
discuss its affairs, finances and condition with its officers and independent
accountants as frequently as the Lender deems appropriate; provided that all
such visits shall be on reasonable prior notice, at reasonable times during
regular business hours of the Borrower.

    

    7.2         Use of
Proceeds.
 The proceeds of the Revolving Loans will be used only for working
capital and other general corporate purposes. Borrower shall not use the
proceeds of the Revolving Loans to pay any individual expenditure in excess of
$500 other than employee wages and payroll taxes without the prior written
authorization of Lender (which authorization may be in the form of electronic
transmission).

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    7.3         Intellectual
Property Security Matters.  The Borrower shall provide to the
Lender, in form and substance satisfactory to the Lender, a duly executed
original of a  security agreement relating to Borrower’s rights in and
to all Patents and Trademarks,  together with all instruments,
documents and agreements executed pursuant thereto, and the Lender shall have
received any and all documents required hereunder or under law or deemed
necessary by the Lender to be filed, registered or recorded in order to create
in favor of the Lender, a perfected lien on the Patents and
Trademarks.

    

    ARTICLE
8

    EVENTS OF
DEFAULT

    

    8.1.        Events of
Default.
 The occurrence of any of the following events shall be deemed to
constitute an “Event of Default” hereunder:

    

    (a)          the
Borrower shall fail to pay to the Lender, on the date on which such payment is
due, any principal of or interest on any Revolving Loan or any Revolving Credit
Note, or the Borrower shall fail to pay, within ten (10) days after the date on
which payment thereof is due, any other sum due and payable under this Agreement
or any Transaction Document;

    

    

    (b)          the
Borrower shall fail to keep or perform any agreement, undertaking, obligation,
covenant or condition set forth in any Transaction Document, which failure, if
curable, is not cured within ten (10) days of written notice from the Lender to
the Borrower;

     

    (c)          (i)
any representation, warranty or certification made by or on behalf of the
Borrower in connection with or pursuant to this Agreement shall prove to have
been incorrect in any material respect when made or given; or (ii) any
representation, warranty or certification made by or on behalf of the Borrower
in connection with or pursuant to this Agreement, although true in all respects
when such representation, warranty or certification was made or given, proves to
be untrue in any material respect at any subsequent time when such
representation, warranty or certification is operative or applicable and such
representation, warranty or certification continues to be untrue ten (10) days
after written notice from the Lender to the Borrower;

    

    (d)         an
involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of the
Borrower or its debts, or of a substantial part of its assets, under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law
now or hereafter in effect or (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Borrower or for
a substantial part of its assets, and, in any such case, such proceeding or
petition shall continue undismissed for 60 days or an order or decree approving
or ordering any of the foregoing shall be entered; or

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (e)          the
Borrower shall (i) voluntarily commence any proceeding or file any petition
seeking liquidation, reorganization or other relief under any Federal, state or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect, (ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in clause (d) of this
Section 8.1,
(iii) apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for the Borrower or for a
substantial part of its assets, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, or (v) make a
general assignment for the benefit of creditors.

    

    8.2.        Remedies.
 After the occurrence of any Event of Default, the Lender shall have the
right in addition to all of the remedies conferred upon the Lender by law or
equity or the terms of any the Transaction Documents, to do any or all of the
following, concurrently or successively

    

    (a)          declare
the Revolving Credit Notes to be, and the Revolving Credit Notes shall thereupon
become, immediately due and payable, provided that if an Event of Default
described in Section
8.1(d) or 8.1(e) shall occur or
exist, the Revolving Credit Notes shall automatically become immediately due and
payable, without presentment, demand, protest or notice of any kind, all of
which are hereby expressly waived, anything contained herein or in the
Transaction Documents to the contrary notwithstanding;

    

    (b)          terminate
the Lender’s obligations under this Agreement to extend credit of any kind or to
make any disbursement, whereupon the commitment and obligations of the Lender to
extend credit or to make disbursements hereunder shall terminate;
and

    

    (c)          exercise
all rights and remedies of a secured party under the UCC and otherwise,
including, without limitation, the right to foreclose the security interest
granted herein by any available judicial or other procedure and/or to take
possession of any or all of the Collateral and the books and records relating
thereto with or without judicial process, for which purpose the Lender may enter
on any or all of the premises where any of the Collateral or books or records
may be situated and take possession and remove the same therefrom; proceed to
protect and enforce its rights or remedies either by suit in equity or by action
at law, or both; require the Borrower to assemble any or all of the Collateral
and any or all certificates of title and other documents relating to the
Collateral at a place designated by the Lender; and exercise in the Borrower's
name all rights with respect to the Collateral, including the right to collect
any and all money due or to become due, endorse checks, notes, drafts,
instruments, or other evidences of payment, receive and open mail addressed to
the Borrower, and settle, adjust, or compromise any dispute with respect to any
item of Collateral.   

    

    ARTICLE
9

    MISCELLANEOUS

    

    9.1    
    Indemnification
of Lender.
 The Borrower will indemnify and hold the Lender and its members,
managers, officers, employees and agents (each, a “Lender Party”)
harmless from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments, amounts
paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation (collectively, “Losses”) that any
such Lender Party may suffer or incur as a result of or relating to any
misrepresentation, breach or inaccuracy of any representation, warranty,
covenant or agreement made by the Borrower in this Agreement.  In addition
to the indemnity contained herein, the Borrower will reimburse each Lender Party
for its reasonable legal and other expenses (including the cost of any
investigation, preparation and travel in connection therewith) incurred in
connection therewith, as such expenses are incurred.  Borrower’s
obligations under this Section shall survive repayment of the Revolving Loans,
cancellation of the Revolving Credit Notes, and termination of this
Agreement.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    9.2         Further
Assurances.  The Borrower agrees that, at any time or from time to
time, upon the written request of the Lender, it will execute and deliver all
such further documents and do all such other acts and things as the Lender may
reasonably request to give effect to this Agreement and the Transaction
Documents.  The Borrower agrees that it will, at its own expense make,
execute, endorse, acknowledge, file and/or deliver to the Lender from time to
time such lists, descriptions and designations of its Collateral, warehouse
receipts, receipts in the nature of warehouse receipts, bills of lading,
documents of title, vouchers, invoices, schedules, confirmatory assignments,
conveyances, financing statements, transfer endorsements, powers of attorney,
certificates, reports and other assurances of instruments and take such further
steps relating to the Collateral and other property or rights covered by the
security interest hereby granted, as the Lender requests to perfect, preserve or
protect its security interest in the Collateral.

    

    

    9.3         Limitation
of Liability.
 Notwithstanding anything herein to the contrary, the Borrower
acknowledges and agrees that the liability of Lender arising directly or
indirectly, under this Agreement of any and every nature whatsoever shall be
satisfied solely out of the assets of Lender, and that no affiliate of Lender or
any member or manager thereof shall be personally liable for any liabilities of
Lender.  

    

    9.4      
  Successors
and Assigns.
 The terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties.
 Nothing in this Agreement, express or implied, is intended to confer upon
any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations, or liabilities under or by reason of
this Agreement, except as expressly provided in this Agreement. Borrower may not
assign any rights or obligations under this Agreement without the prior written
consent of the Lender.

    

    9.5         Governing
Law.  This
Agreement and the Revolving Credit Notes and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto shall be governed,
construed and interpreted in accordance with the laws of the State of New York,
without giving effect to principles of conflicts of law. The Borrower consents
to the nonexclusive jurisdiction and venue of the state or federal courts
located in the City of New York.  Each party hereto irrevocably waives, to
the fullest extent permitted by applicable law, (a) any objection that it may
now or hereafter have to the laying of venue of any such legal proceeding in the
state or federal courts located in the City of New York and (b) any right it may
have to a trial by jury in any suit, action, proceeding, claim or counterclaim
brought by or on behalf of any party related to or arising out of this Agreement
or any Transaction Document, the transactions contemplated hereby, or the
performance of services hereunder.

    

    9.6         Counterparts.  This Agreement may be
executed in any number of counterparts, each of which shall be deemed an
original and all of which together shall constitute one instrument.

    

    9.7         Titles
and Subtitles.
 The titles and subtitles used in this Agreement are used for convenience
only and are not to be considered in construing or interpreting this
Agreement.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    9.8         Notices.   All notices and other
communications under this Agreement shall be in writing and shall be deemed
given (i) when delivered personally by hand (with written confirmation of
receipt), (ii) when sent by facsimile (with written confirmation of
transmission) or (iii) one Business Day following the day sent by overnight
courier (with written confirmation of receipt), in each case at the following
addresses and facsimile numbers (or such other address or facsimile number as a
party may have specified by notice given to other party pursuant to this
provision):

    

    If to
Borrower:

    

    SyntheMed,
Inc.

    200
Middlesex Turnpike, Suite 210

    Iselin,
New Jersey 08830

    Facsimile:(732)
404-1118

    Attention:
Robert Hickey, CEO

    

    With a
copy to:

    

    Eilenberg
& Krause, LLP

    11 East
44th
Street, 19th
Floor

    New York,
New York 10017

    Facsimile:
(212) 986-2399

    Attention:
Keith Moskowitz, Esq.

    

    If to the
Lender:

    

    Pathfinder,
LLC

    12
Bow Street

    Cambridge,
MA 02138

    Attention:
Richard L. Franklin, Manager

    

    With a
copy to:

    

    Casner
& Edwards, LLP

    303
Congress Street

    Boston,
MA 02210

    Facsimile:
(617) 426-8810

    Attention:
David J. Chavolla, Esq.

    
 

    9.9         Costs and
Expenses.
 The Borrower agrees to pay all reasonable out-of-pocket costs and
expenses (including legal costs) incurred by the Lender after an Event of
Default in connection with the collection of the Obligations and enforcement of
this Agreement, the other Transaction Documents or any such other documents.
 Borrower’s obligations under this Section shall survive repayment of the
Revolving Loans, cancellation of the Revolving Credit Notes, and termination of
this Agreement.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    9.10       Entire
Agreement.
 This Agreement and the Transaction Documents constitute the entire
agreement between the parties hereto pertaining to the subject matter hereof,
any and all other written or oral agreements relating to the subject matter
hereof existing between the parties hereto are expressly canceled, and may not
be modified or amended in any manner other than by supplemental written
agreement executed by the parties hereto.  

     

    [SIGNATURE
PAGE FOLLOWS]

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the
parties have executed this Revolving Credit and Security Agreement on and as of
the day first written above.

    

    
      
        
          
            
              
                	 
      	
                        THE BORROWER:

                      	 
      
	 
      	 
      	 
      
	 
      	
                        SYNTHEMED,
      INC.

                      	 
      
	 
      	 
      	 
      
	 
      	
                        By:

                      	

                        /s/
      Robert Hickey

                      	 
      
	 
      	 
      	
                        Robert
      Hickey, CEO

                      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                        THE LENDER:

                      	 
      
	 
      	 
      	 
      
	 
      	
                        PATHFINDER,
      LLC

                      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                        By:

                      	

                        /s/
      Richard L. Franklin

                      	 
      
	 
      	 
      	
                        Richard
      L. Franklin, Manager

                      	 
      

              

            

          

        

      

    

    

    [Signature
Page to Revolving Credit and Security Agreement]

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    EXHIBIT
A

    

    FORM
OF REVOLVING CREDIT NOTE

    $_________

    [Date]

    

    FOR VALUE
RECEIVED, the undersigned, SyntheMed, Inc., a Delaware corporation (the “Borrower”), promises
to pay to the order of Pathfinder, LLC (the “Lender”), at the
place and times provided in that certain Revolving Credit and Security Agreement
dated as of September 14, 2010 (together with all amendments and other
modifications, if any, from time to time hereafter made thereto, the “Agreement”) between
the Borrower and the Lender, together with interest to maturity (whether by
lapse of time, acceleration or otherwise) on the balance of principal remaining
from time to time outstanding at a rate per annum equal to 6%.  Interest
shall be calculated on the basis of a 360-day year and actual days.  This
Revolving Credit Note is being executed and delivered by the Borrower pursuant
to Section
2.1(f) of the Agreement.  Capitalized terms used herein and not
defined herein shall have the meanings ascribed to them in the
Agreement.

    

    The
outstanding principal amount of this Revolving Credit Note and all accrued and
unpaid interest thereon shall become due and payable on demand on the earlier to
occur of (i) the first anniversary of the original issuance date of this
Revolving Credit Note and (ii) the occurrence of a Change of
Control.  If an Event of Default (as defined in the Agreement) shall
occur, the outstanding principal of and accrued and unpaid interest on this
Revolving Credit Note shall become immediately due and payable as provided in
and subject to the terms of the Agreement.  

    

    All
payments on account of the indebtedness evidenced by this Revolving Credit Note
shall be applied first to accrued and unpaid interest and the remainder to
principal (except as otherwise provided in the Agreement).  Payments on
this Revolving Credit Note shall be made in lawful currency of the United States
of America in immediately available funds to the Lender at such place as the
Lender directs the Borrower in writing.

    

    This
Revolving Credit Note is secured by and as provided in the Agreement and other
documents, agreements, and instruments executed by the Borrower.  This
Revolving Credit Note is made and delivered pursuant to the Agreement and is
subject to the further terms and conditions thereof, including the right of the
holder to accelerate payment of the principal of and accrued and unpaid interest
on this Revolving Credit Note and other remedies upon the occurrence of an Event
of Default, all of which are hereby incorporated and made a part of this
Revolving Credit Note by reference.

    

    Upon and
after the occurrence of an Event of Default, interest shall accrue at the
Default Rate.

    

    Any
waiver of any payment due hereunder or the acceptance by the Lender of partial
payments hereunder shall not, at any other time, be taken to be a waiver of the
terms of this Revolving Credit Note or the Agreement or any other agreement
between the Borrower and the Lender.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    THIS
REVOLVING CREDIT NOTE SHALL BE GOVERNED, CONSTRUED AND ENFORCED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO THE CONFLICTS OR
CHOICE OF LAW PRINCIPLES THEREOF.

    

    The
Lender and the Borrower hereby waive the right to any jury trial in any action,
proceeding or counterclaim brought by either the Lender or the Borrower against
each other.

    

    The
Borrower hereby waives all requirements as to diligence, presentment, demand of
payment, protest and (except as required by the Agreement) notice of any kind
with respect to this Revolving Credit Note.

    

    In the
event the holder of this Revolving Credit Note shall refer this Revolving Credit
Note for collection, the Borrower agrees to pay, in addition to unpaid principal
and interest, all of the costs and expenses incurred in attempting or effecting
collection, including reasonable attorneys’ fees, whether or not suit is
instituted.

    

    IN
WITNESS WHEREOF, the undersigned Borrower has executed this Revolving Credit
Note as of the day and year first above written.

    

    
      
        
          	 
      	
                  SYNTHEMED,
      INC.

                	 
      
	 
      	 
      	 
      
	 
      	
                  By:

                	

                   

                	 
      
	 
      	 
      	
                  Robert
      Hickey, CEO

                	 
      

        

      

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    [Exhibit
B and Schedules have been omitted.]EXHIBIT
10.1

     

    PURCHASE
AND SALE AGREEMENT

     

    THIS
PURCHASE AND SALE AGREEMENT (the “Agreement”),
made as of October 8, 2010 by and between EDR Berkeley Place Limited
Partnership, a Delaware limited partnership (“Berkeley”), Western Place, LLC, a
Georgia limited liability company (“Western”), Statesboro Place, LLC, a
Georgia limited liability company (“Statesboro”) and EDR BG, LP, a Delaware
limited partnership (“BG”), and together with
Berkeley, Western, and Statesboro (the “Seller” or Sellers”)
each with an address at 530 Oak Court Drive, Suite 300, Memphis, Tennessee 38117
and KAREP REIT I, INC., a Delaware corporation, or its permitted assignee or
assignees (“Buyer”),
with an address at 200 Business Park Drive, Suite 309, Armonk, New York
10504:

     

    WITNESSETH:

     

    WHEREAS,
each Seller is the fee title owner of its respective property as described in
Exhibit A-1 – Exhibit
A-4, each attached hereto and made a part hereof (singly and
collectively, the “Premises”).  Each
of the Premises, together with each such Premises’ respective Leases, Service
Contracts, Warranties, Permits, and Personal Property, as such terms are
hereafter defined, being sometimes hereinafter singly and collectively referred
to as the “Property”;
and

     

    WHEREAS,
each Seller has agreed to sell to the Buyer, and Buyer has agreed to buy from
each Seller, all of the Property of that Seller, subject to the terms and
conditions herein expressed.

     

    NOW,
THEREFORE, in consideration of the foregoing, the mutual agreements herein
contained and other good and valuable consideration to each of the parties
hereto paid by the other, the receipt and sufficiency whereof are hereby
acknowledged, it is hereby mutually covenanted and agreed by each Seller and
Buyer as follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.           Property to be
Conveyed.  Subject to the terms and conditions hereof, each
Seller shall convey to Buyer, with respect to its Premises, and, except as
expressly provided herein, AS IS, WHERE IS AND WITH ALL FAULTS: (i) fee simple
title to its respective Premises, including, without limitation, all buildings
and improvements thereon or therein; any and all rights of such Seller in and to
all roadways, alleys, easements, rights of way, streets and/or ways adjacent or
appurtenant to its respective Premises; any rights of such Seller to any land
lying in the bed of any existing dedicated street, road or alley adjoining its
respective Premises; all rights of such Seller of ingress and egress to its
respective Premises, whether public or otherwise; all strips and gores adjoining
or abutting its respective Premises; all development rights, air rights, sewer
rights, whether private or otherwise, mineral rights, water, water rights and
water stock relating to its respective Premises; all easements and rights of way
used in connection with the beneficial use and enjoyment of its respective
Premises, and, subject to Section 7 hereof, the
unpaid awards and insurance policy proceeds due to such Seller for taking by
condemnation or eminent domain or for damage to its respective Premises by
reason of casualty or for a change of grade of any street or highway; (ii) good
title to all of such Seller’s equipment, fixtures, appliances, mechanical
systems, machinery, keys, furnishings, all rights to the trade names with
respect to each such Seller’s respective Premises (and all marks related
thereto), except with respect to the trade names “Western Place”, “Statesboro
Place” and “Berkeley Place” which Buyer acknowledges the applicable Sellers do
not have the right to convey, any and all rights of each such Seller (but not of
Seller’s Affiliates) in the web sites and domain names for each of the Premises
and ownership of all social media networks, plans and specifications,
engineering and architectural drawings and renderings, telephone exchange
numbers, and all other tangible and intangible personal property owned by such
Seller of every type and kind now or hereafter placed on, installed in or on, or
used in connection with, such Seller’s respective Premises, except for any items
listed on Exhibit
B attached hereto and made a part hereto (the “Personal
Property”); (iii) any and all service and maintenance contracts and
agreements (but not including any property management agreement, which property
management agreements shall be terminated by such Seller as of the Closing Date)
relating to or affecting all of such Seller’s Property, including, but not
limited to, those listed on Exhibit C-1 attached
hereto and made a part hereto, provided, however, that Buyer may elect not to
assume any service and maintenance contract or agreement that is cancelable with
no more than thirty (30) day’s notice without cost to such Seller (the “Short-Term
Contracts”) by notifying such Seller in writing on or before 5:00 p.m.
(EDT) on the last day of the Due Diligence Period of those Short-Term Contracts
that Buyer elects not to assume (the assumed contracts and agreements are herein
referred to as the “Service
Contracts”); (iv) any and all warranties and guaranties currently in
effect relating to such Seller’s respective Personal Property or any of such
Seller’s respective Premises including, but not limited to, those listed on
Exhibit C-2
attached hereto and made a part hereto (the “Warranties”);
(v) all certificates of occupancy, variances, permits, licenses, sewer hookup
permits and approvals, consents and approvals issued by any governmental or
quasi-governmental authority which are necessary for the construction,
ownership, use, operation and/or occupancy of such Seller’s Premises, including,
but not limited to, those listed on Exhibit C-2 (the
“Permits”);
and (vi) all lease, tenancy and occupancy agreements (both written and verbal),
including all security and other refundable tenant deposits (including all
interest thereon to which the tenants are entitled to receive by law or under
any such lease, tenancy or occupancy agreement), all lease guaranties in
connection therewith, leasing materials and forms and marketing materials in
both printed (hard) form and electronic form (but only to the extent that such
marketing materials contain no reference to such Seller or any Affiliates),
including virtual tours and other electronic media and computers, monitors and
other equipment utilized for the display of same and all tenant files and
records for such Seller’s Premises (the “Leases”).
The title to each of the Sellers’ Premises and all improvements thereon or
therein shall be good and marketable fee simple title, free and clear of liens
and encumbrances except: (1) applicable building and zoning laws, ordinances and
regulations which do not prohibit the use of each such Seller’s respective
Premises for multi-tenant residential use, including student housing, (2) the
lien of current real estate taxes not yet due and payable subject to adjustment
as provided herein, and (3) all title and survey matters approved by Buyer in
accordance with Section 5.
hereof.  The exceptions set forth in clauses (1), (2) and (3) are
sometimes herein collectively called the “Permitted
Exceptions”.  For purposes of this Agreement, “Affiliates” of any Seller
shall mean entities controlling, controlled by, or under common control with,
such Seller.

    
      
         

      

      
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    2.           Inspection and Due Diligence
Period.  This Agreement is contingent upon Buyer being
satisfied that all of the Property is acceptable to Buyer in its sole and
absolute discretion.  Commencing on the Effective Date, as defined in
Section 27
hereof, Buyer shall have until October 8, 2010 (subject to extension for a
Delivery Failure as defined below) (the “Due
Diligence Period”), to conduct any examinations, inspections, reviews,
studies or tests as to the condition of each of the Premises, including any
buildings or improvements thereon, all parking areas, landscaping and amenities,
and to otherwise perform any due diligence with respect to each of the Premises
and the other Property it deems necessary in its sole and absolute discretion
(the “Inspections”);
provided, however, all Inspections shall be subject to the provisions of Section
15 of this Agreement.

     

    Buyer’s
right to conduct the Inspections shall include the right to perform or cause to
be performed such examinations, inspections, reviews, studies or tests of each
of the Premises and all of the other Property as Buyer shall deem necessary in
its sole discretion, including, without limitation, soil tests and borings,
zoning, traffic, marketing and land use studies, engineering inspections of all
building and improvements, including all apartment units, the roofs, load
bearing walls, structural support, elevators, HVAC and other mechanical systems,
and environmental assessments.  Buyer may also inspect and copy all
books and records with respect to the operation of each of the
Premises.  Seller agrees to fully and promptly cooperate in good faith
with Buyer’s Inspections.  Seller has provided to Buyer the documents
and items listed on Schedule 2
hereto.  To the extent reasonably available to Seller, without the
expenditure by Seller of any sum in excess of Five Hundred Dollars and 00/100
($500.00) per Premises, Seller will provide, within two (2) business days of
Buyer’s written request therefore, at any time during the Due Diligence Period,
such other documents and items as Buyer may reasonably have requested in
connection with Buyer’s inspection of each of the Premises and the other
Property, including, without limitation, the following: copies of any existing
surveys, appraisals, termite and pest inspections, title policies or reports
(including legible copies of all exceptions), engineering reports, all pleadings
(including settlement agreements) for all Material Litigation, as such term is
defined in Section
12.(b)iv.2. hereof, commenced by or against Seller or with respect to the
Property during the three year period prior to the date hereof, engineering
plans and specifications, insurance policies, operating statements and budgets,
financial records, a list of operating expenses, copies of all service and
maintenance contracts, warranties, permits, soil studies, environmental studies
and reports (including any radon, asbestos or lead paint studies), market
studies, architectural drawings and renderings, rent rolls, Leases, tenant files
and work orders and other records regarding the Property (collectively the
“Documents”)
and shall, commencing with the Effective Date, provide Buyer with reasonable
access to all portions of each of the Premises, subject to the provisions of
Section 15 of
this Agreement, including any required notice to tenants of the
Premises.

     

    If Seller
fails to timely comply with its obligations set forth in this Section 2. (a “Delivery
Failure”), then Buyer may either:  (i) terminate this Agreement
and all of its obligations hereunder, or (ii) extend the Due Diligence Period
until Seller shall, in Buyer’s sole reasonable determination, cure such Delivery
Failure, but in no event shall the Due Diligence Period be extended for more
than seven (7) days from the date that Seller has cured each such Delivery
Failure.  If, in the event of a Delivery Failure,
either:  (1) Buyer elects to terminate this Agreement or (2) Buyer
elects to extend the Due Diligence Period and at the end of the Due Diligence
Period as so extended, the Delivery Failure remains uncured and Buyer elects to
terminate this Agreement, then in either event, this Agreement shall be null and
void in all respects, and thereafter neither party shall have any further
rights, liabilities or obligations hereunder, except as provided in Section 14. and Section 15. hereof,
each of which shall expressly survive such termination, and the Escrow Agent
shall promptly return the Deposit to Buyer.

    
      
         

      

      
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    If Buyer
shall determine, in its sole and absolute discretion, without any explanation to
Seller, that it is not satisfied with the results of its review, test and
inspection of each of the Premises, or for any or for no reason, then Buyer
shall have the right to terminate this Agreement and all of its obligations
hereunder by giving Seller written notice of such decision on or before 5:00
p.m. (EDT) on the last day of the Due Diligence Period or, if the last day of
the Due Diligence Period is not a business day, then by 5:00 p.m. (EDT) on the
next business day immediately following the last day of the Due Diligence
Period.  In the event Buyer so elects to terminate this Agreement,
then this Agreement shall be null and void in all respects, and thereafter
neither party shall have any further rights, liabilities or obligations
hereunder, except as provided in Section 14. and Section 15. hereof,
each of which shall expressly survive such termination, and the Escrow Agent
shall promptly return the Deposit to Buyer.  In the event Buyer does
not elect to terminate this Agreement as permitted by this Section 2, Buyer is
deemed to have waived all matters relating to the Inspections that arose prior
to or during the Due Diligence Period (except title and survey matters, which
are governed by Section 5), and Buyer shall deliver the Deposit to the Escrow
Agent within two (2) business days after the last day of the Due Diligence
Period.

     

    3.           Purchase
Price.

     

    (a)           Purchase
Price.  The Purchase Price for the Property shall be equal to
Thirty Nine Million One Hundred and Seventy Three Thousand Dollars and 00/100
($39,173,000.00), payable in cash as hereafter provided.   The
Purchase Price shall be paid by Buyer to Seller at Closing as provided
herein:

     

    i.           Within
two (2) business days after the last day of the Due Diligence Period, to be
deposited and held in escrow by the Escrow Agent as provided in Section 3. (b)
hereof: One Million Dollars and 00/100 ($1,000,000.00);

     

    ii.           At
Closing, subject to adjustment and proration as provided in Section 9. hereof:
Thirty Eight Million One Hundred and Seventy Three Thousand Dollars and 00/100
($38,173,000);

     

    iii.          The
Purchase Price shall be allocated among each of the Premises as set forth on
Schedule
3(a)(iii).

    
      
         

      

      
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    (b)           Deposit.  Within
two (2) business days after the last day of the Due Diligence Period, as same
may be extended pursuant to Section 2 hereof,
Buyer shall deposit funds in the amount of One Million Dollars and 00/100
($1,000,000.00) (together with any interest earned thereon, the “Deposit”)
with Chicago Title Insurance Company (the “Escrow
Agent”) located at 711 Third Avenue, 5th Floor,
New York, NY 10017, Attention: Kathleen Fiorito, pursuant to the wire
instructions attached hereto as Schedule
3(b).  In the event this Agreement is closed as contemplated
herein, the Deposit shall be applied to the cash portion of the Purchase Price
at Closing as a credit to Buyer, otherwise, the Escrow Agent shall hold and
apply the Deposit as provided in this Agreement.  Buyer and Sellers
shall provide their respective federal employer identification numbers to Escrow
Agent for purposes of federal and state tax reporting of interest earned on the
Deposit.  If this Agreement closes as provided herein or if the
Deposit is returned to Buyer as provided herein, Buyer shall be responsible for
the payment of any federal and state income tax with respect to any such accrued
interest.  If this Agreement does not close and Seller is entitled to
retain the Deposit, then it shall be responsible for the payment of any federal
and state income tax with respect to any such accrued interest.  Upon
expiration of the Due Diligence Period, the Deposit becomes non-refundable to
Buyer and shall be paid to or applied for the benefit of Seller in accordance
with the provisions hereof, except as expressly provided herein.

     

    4.           Conveyances.  On
the Closing Date, each Seller shall, with respect to its respective Premises:
(i) convey to Buyer good and marketable fee simple title, subject to only the
Permitted Exceptions, to its respective Premises, by special warranty deed using
the applicable form provided by the Escrow Agent, as approved by Buyer and
Seller and where requested by Buyer, Seller shall quit claim any difference
between the surveyor’s description and the description of the property set forth
in the vesting deeds (singly and collectively, the “Deed”);
(ii) convey to Buyer good title to its respective Personal Property by a Bill of
Sale in the form attached hereto and made a part hereof as Exhibit D (the “Bill of
Sale”); (iii) assign to Buyer its respective Warranties, Service
Contracts and Permits by an Assignment in the form attached hereto and made a
part hereof as Exhibit
E (the “Assignment”)
and (iv) assign to Buyer its respective Leases by an Assignment and Assumption
of Leases in the form attached hereto and made a part hereof as Exhibit F (the “Assignment
of Leases”).  Notwithstanding anything in this Agreement to the
contrary, Buyer and Seller agree that this Agreement is for an “all or none”
sale of the Premises and Buyer shall buy and Seller shall sell all of the
Premises or none of the Premises.

     

    5.           Title and
Survey.

     

    (a)           Title.  Seller
has provided Buyer with a copy of Seller’s current title
policy for each of the Premises (singly and collectively, the “Existing
Title Policy”).  Buyer may at its option, and at Buyer’s sole
cost and expense: 
(i) promptly apply for and pursue completion of an update of any Existing Title
Policy, or (ii) apply for a new title commitment for any of the Premises (singly and
collectively, the
“Commitment”)
including true, correct and complete legible copies of all items and documents
referred to therein, each Commitment evidencing the title company’s
agreement to issue
to the Buyer at Closing, an owner’s policy or policies of title insurance on
ALTA Form B-2006 in an amount equal to the portion of the Purchase Price
allocated to each Premises in accordance with Schedule 3(a)(iii)
hereof; insuring the good and clear marketable indefeasible fee title, both of
record and in fact, of the Buyer to each of the Premises, subject only to the
respective Permitted Exceptions; which policy or policies shall each provide
extended coverage over any unrecorded mechanics liens arising prior to the
Closing Date, insure the “gap” between Closing and the recording of the
respective Deed, delete as an exception to such policy the survey exception and
contain such endorsements as Buyer may require in its reasonable discretion
(singly and collectively, the “Title
Policy”).  Seller will cooperate, to a reasonable extent, with
Buyer’s efforts to obtain its desired title endorsements, at no cost or expense
to Seller.  Buyer shall, on or before 5:00 p.m. (EDT) on the last day
of the Due Diligence Period notify Seller in writing specifying Buyer’s
objections (the “Title
Objections”), if any, to the state of title as reflected in the
Commitment (“Buyer’s
Title Notice”).  All matters contained in the Commitment, which
are not listed as Title Objections in Buyer’s Title Notice, shall be deemed to
be accepted by Buyer and considered to be Permitted Exceptions with respect to
the Premises in question in addition to those Permitted Exceptions specified in
Section 1.
hereof.

    
      
         

      

      
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    (b)           Seller
shall use reasonable, good faith and diligent efforts to remove, on or before
the Closing Date, any Title Objections that Buyer has listed in the Buyer’s
Title Notice.  Notwithstanding the foregoing, Seller shall not be
required to expend a sum in excess of one-percent (1%) of the Purchase Price
allocable to any Premises to correct Title Objections as to that Premises,
except for mortgages and liens, which Seller shall remove in any event
regardless of the amount thereof. If Seller is unable or reasonably believes
that it will be unable as of the Closing Date, after such reasonable, good faith
and diligent efforts, to remove any such Title Objections, Seller shall notify
Buyer in writing of such fact as soon as reasonably possible, but in no event
later than the date that is ten (10) days after the date of Buyer’s Title
Notice.  In such event, Buyer may, at its sole election: (i) terminate
this Agreement, or (ii) accept title to each of the Premises subject to all such
Title Objections, provided that it shall give to the Seller written notice of
its election on or before the tenth (10th) day after the date on which it
receives Seller’s notice of Seller’s inability to cure such Title
Objections.

     

    In the
event that any title matter arises between the date of the Commitment and the
Closing Date, that was not contained in the Existing Title Policy or the
Commitment and that is objectionable to Buyer, Buyer shall give Seller prompt
written notice of any such new Title Objections and Seller shall, subject to the
cost limitations set forth in this Section 5.(a) above,
use reasonable, good faith and diligent efforts to remove such Title
Objections.  If Seller is unable or reasonably believes that it will
be unable, after reasonable, good faith and diligent efforts, to cure such
additional Title Objections by the Closing Date, it shall promptly, but in no
event later than ten (10) business days prior to the Closing Date, notify Buyer
in writing, in which case, Buyer may, at its election, by written notice to
Seller:  (1) terminate this Agreement, or (2) extend the Closing Date
for a reasonable period of time not to exceed thirty (30) days from the Closing
Date, during which time Seller shall, subject to the provisions of this Section 5.(a), use
reasonable, good faith and diligent efforts to remove such additional Title
Objections, or (3) accept title to such Premises subject to such additional
Title Objections.  If Buyer elects the alternative contained in Subsection (2) and at
the expiration of such period, Seller is unsuccessful in removing any additional
Title Objections, Seller shall notify Buyer of such fact and Buyer shall have
the option of either:  (a) accepting the title to all of the Premises
subject to such additional Title Objections, or (b) terminating this Agreement;
provided that it shall give to the Seller written notice of its election on or
before the tenth (10th) day after the date on which it receives notice of
Seller’s inability to cure such additional Title Objections.

     

    If Buyer
elects to terminate this Agreement under any of the foregoing provisions, then
this Agreement shall be null and void in all respects, and thereafter neither
party shall have any further rights, liabilities or obligations hereunder,
except as provided in Section 14. and Section 15. hereof,
each of which shall expressly survive such termination, and the Escrow Agent
shall promptly return the Deposit, if any, to Buyer

    
      
         

      

      
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    (b)           Survey.  Seller
has provided Buyer with a legible copy of the most current “as-built” boundary
line survey for each of the Premises, prepared by a registered land surveyor and
so certified by the surveyor as having been made in compliance with the
requirements of an ALTA survey (singly and collectively, the “Survey”).
Buyer may at its option, and at Buyer’s sole cost and expense, promptly apply
for and pursue completion of an update of each Survey. If any Survey discloses
easements, restrictions, rights of way, encroachments or other matters which
would adversely and materially affect the use and occupancy of any of the
Premises for multi-tenant residential use, including student housing, as
determined in Buyer’s sole discretion, and which are not Permitted Exceptions
(“Survey
Objections”), Buyer may, at its option, on or before 5:00 p.m. (EDT) on
the last day of the Due Diligence Period, by written notice to Seller either:
(1) terminate this Agreement or (2) accept title to all of the Premises subject
to such Survey Objections.

     

    If Buyer
elects to terminate this Agreement as provided above, this Agreement shall be
null and void in all respects, and thereafter neither party shall have any
further rights, liabilities or obligations hereunder, except as provided in
Section 14. and
Section 15.
hereof, each of which shall expressly survive such termination, and the Escrow
Agent shall promptly return the Deposit to Buyer.

     

    6.           Conditions Precedent to
Buyer’s and Seller’s Obligation to Close.

     

    (a) Conditions to Buyer’s
Obligation to Close. Without limitation of any other provisions hereof,
Buyer’s obligation to perform the terms of this Agreement shall be subject to
the satisfaction (as determined in Buyer’s sole discretion) of each of the
following conditions precedent with respect to each of the Premises (hereafter
“Buyer’s
Conditions”) (any one or more of which may be waived in writing by Buyer
in its sole and absolute discretion):

     

    i.           that
the Seller has cured all Title Objections as provided in Section 5.(a)
hereof;

     

    ii.       
  that Buyer has not exercised its right to terminate this Agreement
under Section
2., Section
5., Section
6.(b), Section
7., Section
10., Section
12. or Section
13. hereof;

     

    iii.       
 that each of the Seller’s representations, warranties, and covenants
hereunder shall be true and correct in all material respects and not materially
misleading as of the Closing Date;

     

    iv.         Buyer
has determined that no Hazardous or Toxic Material shall have been discharged,
disposed of or released or otherwise exist in, on or under any of the Premises
as of the Closing Date, which Hazardous or Toxic Material was not in existence
on the last day of the Due Diligence Period;

     

    v.          that
the physical condition of each of the Premises, and any improvements thereon, on
the Closing Date shall not have deteriorated from their condition on the last
day of the Due Diligence Period, reasonable wear and tear
excepted.

    
      
         

      

      
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    vi.           that
occupancy, gross revenues and general financial condition, including expenses
and revenues of each of the Premises is not adversely different from the
occupancy, gross revenues and general financial condition, including expenses
and revenues of each such Premises on the last day of the Due Diligence Period,
or if adversely different, there is no more than a five percent (5%)
variance;

     

    vii.           the
purchase and sale transaction contemplated by this Agreement has been
consummated with respect to each of the Premises in accordance with terms and
provisions hereof, except as expressly provided herein; and

     

    viii.           that
Seller has performed all of its obligations hereunder as provided
herein.

     

    If Buyer
shall determine, in its sole discretion, that any of the Buyer’s Conditions are
not satisfied on the Closing Date with respect to each of the Premises (a “Buyer’s
Condition Failure”), then Buyer shall have the right, in its sole
discretion, and in addition to its other rights and remedies hereunder, to: (i)
terminate this Agreement, in which case this Agreement shall be null and void in
all respects, and thereafter neither party shall have any further rights,
liabilities or obligations hereunder, except as provided in Section 14. and Section 15. hereof,
each of which shall expressly survive such termination, and the Escrow Agent
shall promptly return the Deposit to Buyer or (ii) waive the Buyer’s Condition
Failure and proceed to closing in accordance with the terms and provisions
hereof.

     

    (b)           Conditions to Seller’s
Obligation to Close.   Without limitation of any other
provisions hereof, Seller’s obligation to perform the terms of this Agreement
shall be subject to the satisfaction (as determined in Seller’s sole discretion)
of each of the following conditions precedent with respect to each of the
Premises (hereafter “Seller’s
Conditions”):  (i) Buyer has
not timely delivered notice of termination pursuant to the terms of this
Agreement, and (ii) all representations and warranties made by Buyer shall have
remained true in all material respects, (iii) Buyer shall not be in default of
its obligations under this Agreement.  If Seller shall determine, in
its sole discretion, that any of the Seller’s Conditions, or any of the other
obligations of Buyer under this Agreement, are not satisfied on the Closing Date
with respect to each of the Premises (a “Seller’s
Condition Failure”), then Seller shall have the
right, in its sole discretion to:  (i) terminate this Agreement and
exercise its remedies under Section 13(b) hereof
or (ii) waive the Seller’s Condition Failure and proceed to closing in
accordance with the terms and provisions hereof.

    
      
         

      

      
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    7.           Condemnation and Damage and
Destruction.

     

    (a)           If
after the Effective Date hereof and prior to the Closing Date, all or a material
portion of any of the Premises is taken by eminent domain or condemnation (or
sale in lieu thereof) or experiences any material damage, destruction or
casualty (a “Condemnation
or Casualty Event”), Buyer may by written notice to Seller elect to:
terminate this Agreement, in which case this Agreement shall be null and void in
all respects, and thereafter neither party shall have any further rights,
liabilities or obligations hereunder, except as provided in Section 14. and Section 15. hereof,
each of which shall expressly survive such termination, and the Escrow Agent
shall promptly return the Deposit, if any, to Buyer.  If Buyer does
not elect to cancel this Agreement as provided above, this Agreement shall
remain in full force and effect and the purchase contemplated herein, less any
interest taken by eminent domain or condemnation, shall be effected with no
adjustment or abatement of the Purchase Price, other than a credit to Buyer for
any applicable insurance deductible in the event of a casualty; provided, however, that at the Closing,
Seller shall pay to Buyer all amounts received by Seller with respect to such
Condemnation or Casualty Event and shall assign, transfer and set over to Buyer
all of the right, title and interest of Seller in and to: (i) any awards that
have been or that may thereafter be made for such Condemnation or Casualty
Event, and (ii) the rights to any and all insurance proceeds relating to such
Condemnation or Casualty Event.

     

    (b)           If
after the Effective Date and prior to the Closing Date as a result of a
Condemnation or Casualty Event, an immaterial portion of any of the Premises is
taken or suffers any damage, this Agreement shall remain in full force and
effect and the purchase contemplated herein, less any interest taken as a result
of such Condemnation or Casualty Event, shall take place in accordance with the
provisions of this Agreement with no further adjustment or abatement of the
Purchase Price, other than for a credit to Buyer for any applicable insurance
deductible in the event of a casualty; provided, however, that at Closing,
Seller shall pay to Buyer all amounts received by Seller for such Condemnation
or Casualty Event and shall assign, transfer and set over to Buyer all of the
right, title and interest of Seller in and to: (i) any awards that have been or
that my hereafter be made for such taking, and (ii) the rights to any and all
insurance proceeds relating thereto.

     

    (c)           For
purposes of Subsection
7.(a), the term “material portion” shall refer to a portion of any or all
of the Premises, a taking of which or destruction or damage to which as a result
of a Condemnation or Casualty Event would, in the reasonable judgment of Buyer:
(i) require restoration or repair costing either: (A) $200,000 or more for any
one of the Premises or (B) $500,000 or more for all of the Premises in the
aggregate, (ii) decrease the value: (A) of any one of the Premises by $200,000
or more or (B) of all of the Premises, in the aggregate, by $500,000 or more, or
(iii) would materially adversely affect: (1) the ingress and/or egress to or
from any of the Premises or (2) the intended use of any of the Premises as
multifamily residential property, including student housing.  For
purposes of Subsection
7.(b), an “immaterial portion” shall refer to a portion of any Premises,
a taking of which or destruction or damage to which as a result of a
Condemnation or Casualty Event would, in the reasonable judgment of Buyer: (i)
require restoration or repair costing: (A) for any one of the Premises, of less
than $200,000 or (B) for more than one of the Premises, of less than $500,000 in
the aggregate, (ii) decrease the value: (A) of any one of the Premises, by less
than $200,000 or (B) of more than one of the Premises, by less than $500,000 in
the aggregate, (iii) does not materially adversely affect: (1) the ingress
and/or egress to or from any of the Premises or (2) the intended use of any of
the Premises as multifamily residential property, including student
housing.

     

    (d)           Prior
to Closing, in the event of any casualty or condemnation, Seller shall, subject
to the provisions of this Agreement, bear the sole risk of any loss resulting
from a Condemnation or Casualty Event.

    
      
         

      

      
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    8.            
Closing.

     

    (a)           The
transaction contemplated hereunder shall close (the “Closing”)
by escrow established with the Escrow Agent on November 30, 2010, or otherwise
if agreed to by the parties hereto (the “Closing
Date”), provided,
however, Buyer shall be entitled upon written notice to Seller on or before
November 15, 2010, to extend the Closing Date until December 30,
2010.

     

    (b)           At
least five (5) business days prior to Closing, each Seller will deliver to Buyer
(or make available at the Premises as indicated) for its respective Premises,
the following:

     

    i.           A
current rent roll for such Seller’s respective Premises certified by such Seller
containing the name of each tenant, the date of the respective lease, the lease
rent being collected, the lease maturity date, the security deposit, if any, any
interest accrued thereon, and the date to which rent has been collected and the
amount so collected, together with copies of any Leases not previously delivered
to Buyer;

     

    ii.          Copies
of all Service Contracts, to the extent assumed by Buyer, and not previously
delivered to Buyer pursuant to Section 2 (made
available at the Premises);

     

    iii.         Copies
of all employment contracts, if any not previously delivered to Buyer pursuant
to Section 2.,
and evidence of termination of all employees and employment contract not
expressly assumed by Buyer (made available at the Premises);

     

    iv.         Proof
of the valid existence of such Seller in the form of a current certificate of
legal existence dated not more than 30 days prior to the Closing Date and proof
of such Seller’s authority to consummate the purchase and sale contemplated by
this Agreement.

     

    v.          A
closing statement setting forth all adjustments and pro rations as of the
Closing Date as provided in Section 9(a) hereof
(the “Closing
Statement”);

     

    vi.         Copies
of all such Seller’s proposed closing documents, including, without limitation,
the Deed, Bills of Sale, Assignments, Assignment of Lease and all transfer tax
forms;

     

    vii.        A
payoff statement for each mortgage encumbering the Premises; and

     

    viii.       Any
additional documents that Buyer or the Escrow Agent may reasonably require in
connection with the transfer of title.

     

    (c)           On
the Closing Date, Seller shall be responsible for paying its legal fees, the costs of
curing any Title Objections (subject to Section 5.(a)) and
one-half of the cost of the escrow fee.  All conveyance and other
transfer taxes and sales and use taxes which may be assessed in connection with
the conveyance of the Property to Buyer, including the cost of filing the
required reporting forms therefor, shall be allocated in accordance with the
custom of the location in which each Premises is located.  All costs
associated with Buyer’s inspection rights under Section 2 hereof, the
Commitment, the Title Policy, the update of the Survey, one-half of the escrow
fee and its legal fees shall be paid solely by Buyer. At least one (1) business
day prior to the Closing Date, each Seller shall, with respect to its respective
Premises, deliver to the Escrow Agent in escrow (except as expressly noted
below), the fully executed, witnessed and acknowledged Deed, Bill of
Sale, Assignment, and the Assignment of Leases with all exhibits attached to
each such document, together with the following items:

    
      
         

      

      
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    i.           a
mechanic’s lien and parties in possession affidavit, in form and substance
satisfactory to the Escrow Agent, executed by such Seller that: (A) shows its
respective Premises to be free of any liens, other than the liens included as
Permitted Exceptions, and that no work has been performed or contracted which
might give rise to any liens and (B) shows its respective Premises to be free
from possession by third parties other than pursuant to the tenant leases with
rights as tenants only;

     

    ii.           releases
or equivalent documents, for any mortgage or other liens encumbering its
respective Premises, or in the alternative, evidence of the payment in full of
such items satisfactory to the Escrow Agent so as to permit the Escrow Agent to
remove any such item as an exception to title on the Title Policy;

     

    iii.           a
current rent roll for such Seller’s respective Premises, certified by such
Seller to be delivered to Buyer at Closing, and all original tenant files,
including all original Leases, work orders and other documents with respect to
the Leases, and receipts for security deposits shall be available to Buyer at
Sellers’ respective Premises;

     

    iv.           to
the extent not previously provided to Buyer as part of the Documents,
correspondence with respect to suppliers and vendors, unpaid bills (to the
extent payment thereof is the obligation of Buyer hereunder or affects such
Seller’s respective Property after Closing), the original Warranties, Service
Contracts and Permits, and all mechanical drawings, plans and specifications,
engineering reports, environmental and soil tests and reports, appraisals,
surveys and maps, operating budgets, correspondence, and books and records for
such Seller’s respective Premises in such Seller’s possession or under its
control, which items shall be delivered to Buyer at such Seller’s respective
Premises;

     

    v.          evidence
reasonably satisfactory to Buyer and the Escrow Agent of such Seller’s authority
to consummate the transactions contemplated by this Agreement, including,
without limitation, corporate and partnership resolutions, incumbency
certificates, evidence of payment of all franchise and other taxes and
certificates of good standing or their equivalent from the appropriate
governmental authorities;

     

    vi.         a
FIRPTA Affidavit signed by such Seller or the appropriate tax-paying
entity;

     

    vii.        the
Closing Statement executed by such Seller;

     

    viii.       if
required by the Escrow Agent to issue the Title Policy, the customary “gap”
indemnity;

     

    ix.          written
cancellation letters for all Service Contracts not assumed by
Buyer;

    
      
         

      

      
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    x.           a
fully completed IRS Form 1099S, which shall be the responsibility of the closing
settlement agent to file;

     

    xi.          a
certificate in form and substance reasonably acceptable to Buyer, confirming
that as of the Closing Date all of such Seller’s representations and warranties
set forth herein are true and correct;

     

    xii.         letters
to tenants under the Leases in the form attached hereto as Exhibit G shall be
delivered to Buyer at Sellers’ respective Premises; and

     

    xiii.        such
other documents and agreements as the Buyer or the Escrow Agent may reasonably
request.

     

    (d)           At
least one (1) business day prior to the Closing Date, in addition to each
Closing Statement, each Assignment and each Assignment of Leases executed by the
Buyer, Buyer shall deliver to the Escrow Agent:  (i) such other
documents and instruments as Seller and the Escrow Agent may reasonably request
and (ii) the cash portion of the Purchase Price as fully determined after
computation of adjustments and prorations as provided in Section 9. hereof, to
be delivered in the form of a wire transfer of immediately available federal
funds to the Escrow Agent.

     

    (e)           Buyer
shall have the right, during the ten (10) business day period immediately prior
to the Closing Date, to inspect all portions of each of the Premises and all
other Property and to review all tenant files and other property
records.

     

    (f)           Possession
of the Property shall be delivered to Buyer by Seller at the Closing, subject
only to such rights of tenants set forth on the Rent Roll.

     

    (g)          Whenever
under the terms of this Agreement, the time for performance falls on a Saturday,
Sunday or legal holiday, such time for performance shall be extended to the next
business day.

     

    (h)           Except
for liabilities expressly assumed in accordance with this Agreement, Buyer
assumes none of the liabilities of Seller.

     

    9.           Prorations and
Adjustments.

     

    (a)           The
following items shall comprise prorations and adjustments to be determined as of
11:59 p.m. of the day immediately preceding the Closing Date, and shall increase
or decrease the cash portion of the Purchase Price, as the case may
be:

    
      
         

      

      
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    i.           Income
and Expenses.  All income and
expenses of the Real Property and Improvements.  All rents prepaid for
a portion of the term on or after the Closing, shall be paid by credit to Buyer
at the Closing.  All other income and expense items subject to
proration pertaining to the period prior to the Closing Date will be allocated
to and paid by Seller and all income and expense items subject to proration
pertaining to the period starting on the Closing Date will be allocated to and
paid by Buyer.  Seller is responsible for lease commissions due
Seller's employees and locater fees for leases under which the tenant moves into
a unit prior to the Closing Date.  All non-refundable and fully earned
application fees which are not prepaid security deposits shall be retained by
Seller.  Any income receivable in connection with any service contract
will be prorated, but no lump sum or up front payments paid to Seller with
respect to any service contract will be prorated.  Except as provided
in subsection (vi) below, Rent will be prorated based on the Rent Roll provided
by Seller at the Closing as provided in subsection 8(b)(i), including collected
and uncollected rent for the month of Closing.  No later than three
(3) business days prior to the Closing Date, Buyer and Seller shall mutually
approve and provide to the Title Company a schedule of prorations in as complete
and accurate a form as possible.  No later than sixty (60) days after
the Closing, Seller and Buyer shall make appropriate post-Closing adjustments to
the prorations of income and expenses but in no event will any readjustment be
made after the 180th day
after the Closing Date, other than a readjustment of ad valorem taxes and
assessments.

     

    ii.           Deposits.  All deposits paid
as refundable security for rent, cleaning, pet deposits, or any other purposes
will be paid to Buyer at the Closing and the obligation, if any, to refund the
cash deposits to tenants is assumed by Buyer.  No non-refundable
deposits or fees paid by tenants shall be paid or payable to Buyer.

     

    iii.         Taxes.  Ad valorem taxes
and personal property taxes (if any) for the Property for the current calendar
year shall be prorated to date of the Closing, and Buyer shall credit to Seller
at the Closing, Buyer’s pro-rata portion of such taxes, all in accordance with
the custom for the jurisdiction in which the respective property is
located.  Buyer’s pro rata portion of such taxes shall be based upon
taxes actually assessed for the current calendar year. If, for any reason, ad
valorem taxes and personal property taxes (if any) for the current calendar year
have not been assessed on the Property, such prorating shall be estimated based
upon ad valorem taxes and personal property taxes (if any) for the immediately
preceding calendar year, and adjusted within thirty (30) days of the date that
actual amounts are available.  Buyer and Seller agree that the sale of
the Premises does not constitute an “applicable asset acquisition” within the
meaning of Section 1060 of the Internal Revenue Code and will file all tax
returns consistently therewith.

     

    iv.         Expenses.  All other income
and ordinary operating expenses for or pertaining to the Property, including,
but not limited to, public utility charges, maintenance, service charges,
housekeeping expenses and all other normal operating charges of the Property
shall be prorated at the Closing. In the event the meter readings are not
available at the Closing, utility costs will be prorated based on the best
information available.

     

    v.          Reproration.  In the event any
prorations made by the parties are found to be erroneous, then either party
hereto who is entitled to additional monies shall invoice the other party for
such additional amounts as may be owing, and such amount shall be paid within
ten (10) days from receipt of the invoice. The obligations of Seller and Buyer
to reprorate shall survive the Closing for a period of 180 days, except as
provided in paragraph 9(a)(iii) with respect to taxes.

    
      
         

      

      
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    vi.         Accounts
Receivable.  At Closing, all accounts receivable, more than
thirty (30) days old but not more than ninety (90) days old as of the Closing
Date, due from tenants at a Seller’s respective Property (the “Purchased
Receivables”) will be purchased from such Seller by Buyer at a discount
of fifty percent (50%) of the amount past due and Buyer shall have no further
obligation to such Seller for any accounts receivable
collections.  Such Seller may pursue collection of any delinquent
rents that are more than ninety (90) days old as of the Closing Date provided
that such Seller shall have no right to terminate a Lease or any tenant’s
occupancy under any Lease in connection therewith.

     

    vii.        Any
sales and use taxes generated in connection with the purchase or sale of the
Personal Property shall be allocated in accordance with the local custom in
which each Premises is located.

     

    viii.       Buyer
shall receive a credit against the Purchase Price at Closing in the amount of
Five Hundred Thousand Dollars and 00/100 ($500,000.00).

     

    (b)           With
respect to each Property, the parties shall cause the reading of all utility
services at such Property, including, without limitation, oil, water, electric,
telephone, gas and sewer, to be made as of 11:59 p.m. of the day immediately
preceding the Closing Date (as determined by the local time in which such
Property is located), or as soon prior thereto as possible, and the Seller for
such respective Property shall pay final utility bills that are not billed
directly to and paid by tenants through and including the aforementioned 11:59
p.m. time.  Each Seller shall obtain refunds of any security deposits
made for such utilities with respect to its respective Property, and Buyer shall
make its own utility deposits with respect to such Property to assure continued
services, or Buyer, if it elects, shall pay to such Seller the amount of such
deposits related to such Seller’s respective Property and receive the transfer
of such deposits.

     

    (c)           To
the extent that any adjustment set forth herein is based upon estimated bills,
such amounts will be readjusted upon final determination of the amounts in
question; in all events by that date which is one hundred eighty (180) days
after the Closing Date.

     

    10.          Representations, Warranties
and Agreements of and Indemnity by Seller.  To induce Buyer to
execute, deliver and perform this Agreement, each Seller hereby represents and
warrants to, and agrees for the benefit of, Buyer that, with respect to its
respective Property, each of the following representations, warranties and
agreements on and as of the date hereof are, and will be on and as of the
Closing Date, true, complete, correct in all material respects and not
misleading in any material adverse respect:

     

    (a)           that
such Seller is the sole owner of its respective Property and such Seller has
full capacity, right, power and authority to execute, deliver and perform this
Agreement and all documents to be executed by such Seller pursuant hereto, and
all required action and approvals therefor have been duly taken and obtained,
and that the individuals signing this Agreement and all other documents executed
or to be executed pursuant hereto on behalf of such Seller are and shall be duly
authorized to sign the same on such Seller’s behalf and to bind such Seller
thereto, and that this Agreement and all documents to be executed pursuant
hereto by such Seller are and shall be binding upon and enforceable against such
Seller in accordance with their respective terms, and the transaction
contemplated hereby will not result in a breach of or constitute a default or
permit acceleration of maturity under any indenture, mortgage, deed of trust,
loan agreement or other agreement to which such Seller or its respective
Premises are subject or by which such Seller or its respective Premises are
bound;

    
      
         

      

      
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    (b)           that
there are, and will be as of the Closing Date, no liens against the Property,
other than the Permitted Exceptions;

     

    (c)           that
Seller has not received any notice of, and has no actual knowledge of any
health, safety, building, pollution, environmental, zoning or other violations
of law, including, without limitation, any Environmental Laws, as such term is
hereafter defined, with respect to any of the Premises which have not been
entirely corrected;

     

    (d)           that:
(1) except as noted in the certified rent rolls described in Sections 8.(b)i. and
8(d)(iii). hereof, each of the Leases is and on the Closing Date will be
in full force and effect and Seller has not received notice from any tenant
thereunder of, nor is Seller aware of, a default by Seller of its obligations
under any such Lease, (2) except as noted in the certified rent rolls described
in Section
8.(b)i. hereof, there are and will be on the Closing Date no rents under
any of the Leases paid more than 30 days in advance, (3) Seller has complied in
all material respects with all of the terms and conditions to be performed by
the landlord under the Leases as of the date hereof, (4) except as noted in the
certified rent rolls described in Section 8.(b)i. hereof, to best of Seller’s
knowledge, it is not aware of any event of default by any tenant under any
Lease, (5) there is not, nor will there be as of the Closing Date, any
obligation on the part of the landlord under the Leases to any tenant thereof to
perform any work, other than customary and normal maintenance and repair work,
(6) the rent roll attached hereto as Exhibit H is true and
correct in all respects, (7) the security deposits set forth on the rent roll
are the only security deposits with respect to the Leases and Seller has
complied with applicable state law governing tenant security deposits, and (8)
with the exception of typical disputes for security deposit refunds (for which
Seller shall remain fully liable after the Closing), Seller is not aware of any
defense, counterclaim or right of setoff which any tenant may have under any
Lease;

     

    (e)           that
Seller has complied in all material respects with all the terms and conditions
to be performed by Seller under the Service Contracts that will affect the Buyer
or any of the Premises after Closing; that all Service Contracts, including any
management and leasing contracts, are identified in Exhibit C-1,
including, but not limited to, any management and leasing contracts that may be
terminated without cause on 30-days’ notice; that other than the Service
Contracts, there are no outstanding written contracts or agreements, whether for
maintenance, labor, materials, supplies, services or otherwise, with any person,
firm, labor union or entity with respect to the Property, and there are, and
will be as of the Closing Date, no past due amounts thereunder; that except as
noted on Exhibit
I, there are no employees of Seller, Seller has not made any promise or
commitment to any employee for or on behalf of Buyer for continued employment
after the Closing Date; and the employment of all of Seller’s employees for each
of the Premises shall be terminated by Seller effective as of the Closing Date
and in connection therewith Seller shall be responsible for payment of wages,
accrued benefits and unemployment withholding and Seller shall comply with all
state and federal law regarding such terminations;

     

    (f)           that
no foreign person, as defined in the Internal Revenue Code, has an interest in
Seller, or will receive any moneys from the sale of the Premises, or is subject
to withholding as required by Section 1445 of the Internal Revenue
Code;

    
      
         

      

      
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    (g)           that
Seller has not received any written notice of, nor, to the best of Seller’s
knowledge, are there any pending or threatened condemnation or eminent domain
suits, relative to any of the Premises;

     

    (h)           that
on the Closing Date, the improvements on each of the Premises and all
electrical, plumbing and mechanical systems, including, without limitation, the
heating, ventilating and air conditioning system and all other equipment will be
in the same condition as on the last day of the Due Diligence Period, reasonable
wear and tear excepted.  The inventory of appliances, furnishings,
furniture, fixtures, equipment and machinery provided to Buyer by Seller as part
of the Documents is a full and complete list of all such Personal Property to be
transferred hereunder all of which is currently fully operational.  On
the Closing Date, possession of the Property and each of the Premises shall be
delivered to the Buyer in a fully operational condition and all apartment units
shall be in a fully rentable condition;

     

    (i)           that
attached hereto as Exhibit J is a
current list of all real and personal property taxes, assessments and impact
fees for each of the Premises, each of which are and will be on the Closing Date
current.  To the best of Seller’s knowledge: (1) there are no present
proceeding with respect to such taxes, impact fees and assessment; and (2) all
sales and use taxes due and payable with respect to the Property, including any
sales and use taxes due and payable in connection with any property management
agreement, are, and will be as of the Closing Date, current.

     

    (j)           that
except as set forth in Exhibit K, Seller has
not received any written notice of, nor, to the best of Seller’s knowledge, does
Seller have any knowledge of any pending or threatened law suits, arbitrations
or claims, including mechanics liens.  Seller shall immediately give
Buyer written notice, by certified mail, return receipt requested, of any such
pending or threatened law suits, arbitrations or claims, including mechanics
liens.  In the event such pending or threatened law suits,
arbitrations or claims, including mechanics liens, shall involve a potential
loss or expense in excess of Ten Thousand Dollars ($10,000) (except condemnation
or eminent domain suits, which are governed by Section 7. hereof and
litigation involving tenants which is governed by Section 12. hereof),
or would adversely affect the use and occupancy of any of the Premises as
currently used as multifamily residential student housing, and such lawsuit,
arbitration or claim, including any mechanics lien, is not resolved by Seller to
Buyer’s reasonable satisfaction within Seller’s cure periods under Section 13.(a)
hereof, then Buyer shall have the option to (i) terminate this Agreement, in
which case this Agreement shall be null and void in all respects, and thereafter
neither party shall have any further rights, liabilities or obligations
hereunder, except as provided in Section 14. and Section 15. hereof,
each of which shall expressly survive such termination, and the Escrow Agent
shall promptly return the Deposit, if any, to Buyer or (ii) waive the objection
and proceed to Closing in accordance with the terms and provisions hereof;
provided that Buyer shall, within ten (10) days of Buyer’s receipt from Seller
of written notice as aforesaid, give to Seller written notice of Buyer’s
election; and

     

    (k)           that
there are not, nor will there be as of the Closing Date, any commissions, or
other compensation owed to any person in connection with the Premises, including
any commissions paid to any person for finding tenants for the
Premises;

    
      
         

      

      
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    (l)           that
there are no sales, income, franchise, withholding or similar taxes due and
owing from Seller, or any Affiliate, that are, or could, become a lien on any of
the Property and that each Seller, or any Affiliate, has timely filed all
returns for all such taxes for the period on or before the Closing that are
required to be filed on or before the Closing Date; and

     

    (m)           that
to the best of such Seller’s actual knowledge, without any investigation or
inquiry: (1) there has not been any escape, removal, seepage, spillage,
discharge, emission or release of any Hazardous or Toxic Material caused by such
Seller, or any Affiliates, on, under, above or emanating from any of such
Seller’s respective Premises, or any parts thereof, including any of the
buildings and improvements thereon; and (2) there are no pending or anticipated
suits, actions, proceedings or notices from any governmental or quasi
governmental agency with respect to any of the Premises, or any parts thereof,
including the buildings and improvements thereon.  For purposes of
this Agreement, the term “Hazardous
or Toxic Material” shall be defined to include: (x) asbestos or any
material composed of or containing asbestos in any form and of any type, or (y)
the presence of lead paint at any of the Premises or (z) any actionable amount
of hazardous, toxic or dangerous waste, substance, material, smoke, gas or
particulate matter, as from time to time defined by or for purposes of the
Comprehensive Environmental Response Compensation and Liability Act, and any law
commonly referred to as of the date hereof as “Superfund” or “Superlien” or any
successor to such laws, or any other federal, state or local environmental,
health or safety statute, ordinance, code, rule, regulation, order or decree
regulating, relating to or imposing liability or standards concerning or in
connection with hazardous, toxic or dangerous wastes, substances, material, gas
or particulate matter as now or at any time hereinafter in effect (collectively,
the “Environmental
Laws”).  Seller shall give prompt written notice to Buyer if
Seller knows that there may be any Hazardous or Toxic Materials in or around any
of the Premises or if Seller or any of the Premises is subject to any threatened
or pending investigation by any governmental authority under any governmental
requirement or ordinance pertaining to any Hazardous or Toxic
Material;

     

    Seller
agrees to indemnify and hold Buyer harmless from and against all liabilities,
claims, actions, cost and expenses (including sums paid in settlement of claims
and all consultant, expert and legal fees and expenses of Buyer and its counsel)
or a loss directly or indirectly arising out of or resulting from any Hazardous
or Toxic Materials in or upon any part of any of the Premises, or in the soil,
ground water or soil vapor on or under any of the Premises (including those
incurred in connection with any investigation of site conditions or any cleanup,
remediation, removal, or restoration work, or any resulting damage or injuries
to the person or property of any third parties or to any natural resources) and
(i) which was caused by the acts, omissions or negligence of Seller, its
Affiliates, agents or employees, and (ii) which arose during the Seller’s
ownership of the Property (and not before); and (iii) which was not disclosed in
any environmental report or test provided to or secured by Buyer and (iv) except
for any such damages which may arise from any Hazardous or Toxic Materials which
have been discharged, disposed of or released in, on or under the Premises after
the Closing Date, or before the Closing Date as a result of Buyer’s negligence
or willful misconduct.  Upon Buyer’s demand and reasonable belief that
the presence of such Hazardous or Toxic Materials has given rise to any
investigation, action, or proceeding alleging the presence of any Hazardous or
Toxic Material which affects any of the Premises in question or which is
otherwise brought or commenced against Buyer, whether alone or together with
Seller or any other persons, Seller shall defend any such investigation, action
or proceeding, all at Seller’s own cost and by counsel to be approved by Buyer
in the exercise of its reasonable judgment.  Seller shall not
compromise or settle any such investigation, action or proceeding or consent to
any fine, penalty or sanction in connection therewith, without Buyer’s consent,
unless the total burden of such fine, penalty or sanction falls solely on the
Seller and does not, in Buyer’s reasonable judgment, affect Buyer or any of the
Premises.  If it is subsequently determined or agreed that the
presence of such Hazardous or Toxic Materials giving rise to the investigation,
action, or proceeding was not caused by Seller, its Affiliates, agents or
employees, then Buyer shall reimburse Seller for all costs and expenses
(including sums paid in settlement of claims and all consultant, expert and
legal fees and expenses incurred by Seller and its counsel or any other losses
suffered by Seller) incurred or suffered by Seller in defending Buyer and any of
the Premises from such claim, action, or proceeding;

    
      
         

      

      
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    If
between the date hereof and Closing, Seller has actual knowledge that any of the
foregoing representations and warranties proves or becomes untrue, incorrect or
misleading in any material adverse respect, then Seller shall promptly notify
Buyer in writing of such fact and then in such event Buyer shall have the option
to: (i) terminate this Agreement, in which case this Agreement shall be null and
void in all respects, and thereafter neither party shall have any further
rights, liabilities or obligations hereunder, except as provided in Section 14. and Section 15. hereof,
each of which shall expressly survive such termination, and the Escrow Agent
shall promptly return the Deposit, if any, to Buyer or (ii) waive the objection
and proceed to Closing in accordance with the terms and provisions hereof;
provided that Buyer shall, within ten (10) days of Buyer’s receipt from Seller
of written notice as aforesaid, give Seller written notice of Buyer’s
election.

     

    11.          Representations, Warranties
and Agreements of Buyer.  To induce Seller to execute, deliver
and perform this Agreement, Buyer, subject to the Buyer’s Conditions, hereby
represents, warrants to, and agrees for the benefit of each Seller on and as of
the date hereof and on and as of the Closing Date as follows:

     

    (a)           Buyer
is a corporation validly existing and in good standing under the laws of its
jurisdiction of organization; all representations and warranties of Buyer
appearing in other sections and subsections of this Agreement are true and
correct in all material respects and each Buyer’s assignees will
on  the Closing Date be qualified to do business in the states in
which the respective Premises being acquired by such assignee is
located;

     

    (b)           Buyer
has full capacity and all necessary authority to execute, deliver and perform
this Agreement and all documents to be executed by Buyer pursuant hereto are and
shall be binding upon and enforceable against Buyer in accordance with their
respective terms; the person(s) executing this Agreement on behalf of Buyer is
(are) authorized to do so;

     

    (c)           There
are no attachments, executions, assignments for the benefit of creditors,
appointments of receivers, voluntary of involuntary proceedings in bankruptcy or
under other debtor relief laws contemplated by, pending or threatened against
Buyer; and

     

    (d)           Neither
Buyer nor, to the best of Buyer’s reasonable knowledge, any beneficial owner of
Buyer:

    
      
         

      

      
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    i.           is
listed on the Specially Designated Nationals and Blocked Persons Listed
maintained by OFAC and/or on any other list of terrorists or terrorist
organizations maintained pursuant to any of the rules and regulations of OFAC or
pursuant to any other applicable legal authority (such lists are collectively
referred to as the Lists);

     

    ii.           is
a Person who has been determined by competent authority to be a Person with whom
a U.S. Person is prohibited from transacting business, whether such prohibition
arises under U.S. law, regulation, executive orders or any lists published by
the United States Department of Commerce, the United States Department of State
including any agency or office thereof;

     

    iii.         is
owned or controlled by, or acts for or on behalf of, any Person on the Lists or
any other Person who has been determined by competent authority to be a Person
with whom a U.S. Person is prohibited from transacting business, whether such
prohibition arises under U.S. law, regulation, executive orders or any lists
published by the United States Department of Treasury or the United States
Department of State including any agency or office thereof; or

     

    iv.     
   Is under investigation by any governmental authority for, or
has been charged with, or convicted of, money laundering, drug trafficking,
terrorist-related activities, any crimes which in the United States would be
predicate crimes to money laundering, or any violation of any Anti-Money
Laundering Laws.

     

    (e)           On
or before the expiration of the Due Diligence Period, Buyer shall inform Seller
of any Short-Term Contracts that Buyer wishes Seller to terminate.

     

    12.          Covenants and Agreements of
Seller and Buyer.

     

    (a)           From
the date hereof to the Closing Date or earlier termination of this Agreement,
Seller shall not do, suffer or permit, or agree to do, any of the
following:

     

    i.           enter
into any transaction, contract or agreement in respect to or affecting any of
the Property after Closing;

     

    ii.          sell,
encumber or grant any interest in any of the Property, or any part thereof,
which will prevent Seller’s full performance of Seller’s obligations hereunder
except for residential leases in the ordinary course of business, as provided in
Section
12.(b)(ii) hereof; and

     

    iii.         fail
to operate each of the Premises in compliance with all applicable governmental
laws, statutes, regulations, ordinances and codes; fail to give Buyer prompt
written notice of any Hazardous or Toxic Material or violation of any
Environmental Law of which it has received notice of or has actual knowledge of,
on or at any of the Premises of which Seller is aware or should, with the
exercise of reasonable diligence, be aware; enter into any easement, covenant,
restriction or right of way for or burdening any of the Premises; or modify,
terminate or extend any Service Contract.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    (b)           Between
the date hereof and the Closing Date, Seller shall do the
following:

     

    i.           maintain
all current insurance in all current amounts on all of the
Property;

     

    ii.         continue
to manage, lease, operate, repair and maintain all of the Property in a manner
consistent with the Seller’s current standards and practices; continue to
perform all obligations of the landlord arising under the Leases and may
continue to negotiate leases and enter into a new Lease or renew an existing
Lease for any unit space on its current Lease form as delivered to and approved
by Buyer, provided such lease renewal or new Lease so entered into by Seller
shall be on a monthly rental and on other terms approved by the Buyer, and
Seller consults with Buyer with respect to all pricing and lease related
decisions related to the Premises; Seller’s obligations under this Subsection ii. shall
include, but not be limited to, actively marketing the lease-up of all units,
continue to maintain the units at each of the Premises and respond to tenant
requests regarding such maintenance, repairs and refurbishments to the units at
each of the Premises and to promptly repair, refurbish and restore units at each
of the Premises as such units become vacant so that such vacant units are
promptly restored to a “rentable” condition;

     

    iii.        subject
to Section 7.
hereof, Seller shall repair, at its sole cost and expense, all damage to each of
the Premises occurring after the Due Diligence Period and on or prior to the
Closing Date except to the extent caused by Buyer or its agents; any such
repairs and any capital improvements to each of the Premises shall be completed,
lien free and at the sole cost and expense of Seller, in a manner reasonably
satisfactory to Buyer; if Seller is currently undertaking any capital
improvement at the Premises or commences any such capital improvement prior to
the Closing Date, such capital improvement must be completed, at Seller’s sole
cost and expense, to the reasonable satisfaction of Buyer, lien free, prior to
the Closing Date; and

     

    iv.        in
the event of any litigation filed between the date hereof and the Closing Date
by or against Seller or any of the Premises in connection with the Leases,
Seller shall retain complete control of such litigation, shall have the right to
select and direct counsel regarding same, and the right to enter into any
settlement agreement deemed appropriate by Seller.  Seller shall not
settle any litigation with any tenant in a manner that will adversely affect
Buyer or any of the Premises after the Closing Date, including, without
limitation, abating the rent or otherwise agreeing to modify the terms of the
current Leases.  From and after the Closing Date, should any such
litigation remain pending, or thereafter be filed or commenced for events
occurring prior to Closing Date, Seller shall prosecute or defend such action,
shall be totally responsible for all costs and judgments incurred in connection
therewith, and shall be entitled to all judgments, awards and costs which Seller
may obtain by way of successful prosecution or defense of such action, by way of
prevailing upon any counterclaim filed in connection therewith, or by way of
settlement, except for rent for periods subsequent to the
Closing.  Seller agrees not to enter into any settlement of litigation
that continues after Closing without prior written consent of Buyer that shall
not be unreasonably withheld.  It is the intention of both Buyer and
Seller that the foregoing provision shall apply solely to litigation filed after
the date hereof, Seller having, by its execution hereof, agreed with Buyer that,
to the best of Seller’s knowledge, no such litigation, whether by or against
Seller, is presently pending or contemplated except as expressly provided in
Exhibit K
hereto.  Regarding the foregoing litigation, by its execution hereof,
Buyer and Seller expressly agree as follows:

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    1.           Other
than the litigation, claims, suits and charges which may be pending on the
Closing Date, or which may arise after Closing for events occurring or accruing
prior to Closing, which shall be the sole responsibility of Seller, Buyer shall,
at Closing, assume responsibility for all litigation, claims, suits and charges
(other than by litigation between Seller and Buyer) which may in the future be
filed in connection with the Premises.

     

    2.           Buyer’s
obligation to close the transaction as provided herein shall be and remain
unaffected by any pending tenant litigation or disputes so long as such tenant
litigation or dispute does not, with respect to each of the Premises, involve a
claim or claims in excess of $50,000.00 for any one of the Premises or
$125,000.00 in the aggregate for all of the Premises, or involve or include, in
the aggregate, five percent (5%) or more of the total units at any of the
Premises.  If, on the Closing Date, with respect to any of the
Premises, such tenant litigation involves or includes, claims in excess of
$50,000.00 for any one of the Premises or $125,000.00 in the aggregate for all
of the Premises, or involve or include, in the aggregate, five percent (5%) or
more of the total units at any of the Premises, then the Buyer, at its option,
may elect to: (i) terminate this Agreement, in which case this Agreement shall
be null and void in all respects, and thereafter neither party shall have any
further rights, liabilities or obligations hereunder, except as provided in
Section 14. and
Section 15.
hereof, each of which shall expressly survive such termination, and the Escrow
Agent shall promptly return the Deposit, if any, to Buyer or (ii) waive the
objection and proceed to Closing in accordance with the terms and provisions
hereof.  All pending litigation is listed in Exhibit
K.  Seller shall promptly notify Buyer of any changes to this
list.  For purposes of this Agreement, any litigation, claim, suit or
action in excess of the threshold amounts specified above or in Section 10.(j)
hereof, either singly or collectively, shall be deemed a “Material
Litigation”.

     

    3.           Seller
agrees to indemnify, defend and hold Buyer harmless from and against any
litigation, claim, suit, action, charge, cost or expense, including reasonable
attorneys’ fees, which is currently pending, was pending or which arises either
before or after Closing as a result of any act, omission, condition or event
occurring prior to the Closing Date.  Buyer agrees to indemnify,
defend and hold Seller harmless from and against any litigation, claim, suit,
action, charge, cost or expense, including reasonable attorneys’ fees, which
arises as a result of any act, omission, condition or event occurring on or
after the Closing Date.

     

    (c)           Buyer
covenants and agrees, at no cost to Buyer, to cooperate with Seller and Seller’s
accountants and independent auditors to provide reasonable and necessary access
to financial records related to the Premises, including, but not limited to any
financial statements and supporting records.  This provision shall
survive the Closing for one (1) year.  All such access shall be on
reasonable prior written notice from Seller to Buyer and at such reasonable
times and days as Buyer may determine.

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    13.          Default.

     

    (a)           Seller’s
Default.  The obligation of Buyer to close the transaction
contemplated hereby is, at Buyer’s option, subject to satisfaction of Buyer’s
Conditions and all obligations of Seller to have been performed on or before the
Closing Date having been timely and duly performed.  In addition, if
Seller remains in default hereunder after five (5) business days’ written notice
from Buyer, then Buyer shall, in its sole discretion, elect as its sole and
exclusive remedy for such default by Seller to either: (i) terminate this
Agreement, in which case this Agreement shall be null and void in all respects,
and thereafter neither party shall have any further rights, liabilities or
obligations hereunder, except as provided in Section 14. and Section 15. hereof,
each of which shall expressly survive such termination, and the Escrow Agent
shall promptly return the Deposit to Buyer, (ii) waive the default and proceed
to Closing in accordance with the terms and provisions hereof or (iii) bring
suit for specific performance of Seller’s obligations hereunder.  If
the court in which suit for default of this Agreement is brought finds that
Seller is in default and that Buyer should be awarded a judgment against Seller,
but such court refuses to permit the equitable remedy of specific performance,
in such case, the parties agree that an award of damages for actual out of
pocket costs incurred (and no exemplary, consequential or punitive damages)
would be appropriate.

     

    (b)           Buyer’s
Default.  The obligation of Seller to close the transaction
contemplated hereby is, at Seller’s option, subject to all obligations of Buyer
to have been performed on or before the Closing Date having been timely and duly
performed.  If Buyer shall remain in default of its obligation under
this Agreement after five (5) business days’ written notice from Seller, Seller,
at its sole and exclusive remedy for such default by Buyer, shall be entitled to
terminate this Agreement and retain the Deposit.  Upon such
termination by Seller, this Agreement shall become null and void and of no
further force or effect, except as provided in Section 14. and Section 15. hereof,
each of which shall expressly survive such termination.

     

    14.           Broker.  Buyer
and Seller represent and warrant to each other that each has not dealt with any
broker, agent or similar person in connection with this transaction or the
Premises.  Each of Buyer and Seller agrees to indemnify, defend and
hold harmless the other party from and against any and all litigation, claim,
suit, action, charge, cost or expense, including reasonable attorneys’ fees, for
any brokerage or agent commission or fee arising out of this transaction by any
broker or agent with whom the indemnifying party has dealt.  Each such
party shall have the right, however, to participate in the defense of any action
brought by such agent or broker.  The provisions of this Section 14. shall
survive the Closing Date.

     

    15.           Buyer’s Inspection
Indemnification.  (a)  From the Effective Date to the
earlier of the Closing Date or termination of this Agreement, Seller shall
permit Buyer and representatives, accountants, agents, attorneys, employees,
lenders, contractors, appraisers; architects and engineers designated by Buyer
(collectively “Permittees”),
upon reasonable notice and at reasonable times, access to and entry upon each of
the Premises to examine, inspect, measure and test the Property, all at Buyer’s
sole cost and expense. Seller shall have the right to require that a
representative may accompany any or all of the Permittees provided that such right
shall not cause undue delay in Buyer’s inspection.  Buyer will not,
and will cause the Permittees to not, unreasonably interfere with or permit
unreasonable interference with the quiet enjoyment of all or any portion of any
of the Premises by any tenant thereof, or interfere with or permit the
unreasonable interference with any person occupying or providing service at the
Premises.  Buyer and its Permittees shall restore any damage to the
Property caused by its tests and inspections. Buyer does hereby indemnify and
forever defend and hold Seller, and its members, agents, and employees harmless
from any loss, liability, suit, action judgment, or claim (including, without
limitation, any mechanics’ liens which may be filed against any of the Premises)
which any of the indemnified parties may suffer or sustain as a result of the
exercise by Buyer of its rights (and that of its Permittees) to enter upon the
Property or the office of Seller pursuant to this Section
15.  Notwithstanding the foregoing or anything else to the
contrary contained in this Agreement, Buyer’s obligations under this Section
shall survive the Closing or any termination of this Agreement.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    (b)           Buyer
shall provide, as a condition precedent to entering onto any of the Premises, a
public liability insurance policy in such form and issued by such company as
shall be satisfactory to Seller insuring against bodily injury, including death,
and personal injury, including without limitation libel, slander and invasion of
privacy, in an amount not less than $1,000,000.00 per occurrence, and
$3,000,000.00 in the aggregate, with deductible provisions not to exceed
$10,000.00 per occurrence, and for damage to or loss or destruction of property,
including loss of use thereof, in an amount not less than $500,000.00 per
occurrence and not less than $3,000,000.00 in the aggregate, with deductible
provisions not to exceed $10,000.00 per occurrence.  Each such policy
shall expressly provide therein that coverage includes the contractual liability
assumed by Buyer pursuant to this Agreement.  Furthermore, each such
policy shall be endorsed to show Seller as an additional named insured, shall
contain a waiver of subrogation rights and shall provide for no less than thirty
(30) days notice of any cancellation or adverse change to such
policy.

     

    (c)           Certificates
of insurance acceptable to Seller shall be provided to Seller on the Effective
Date.

     

    (d)           Buyer
hereby assumes all liability for any and all damage to property or injury to
persons resulting from or arising out of Buyer’s negligence or the negligence of
any Permittee.  Nothing contained in this Agreement shall be deemed or
construed to limit Buyer’s obligation under this paragraph so as to exclude
Buyer’s liability for damages which are not covered by or which exceed the
amount of insurance maintained pursuant to the provisions set forth
above.

     

    (e)           Buyer
further agrees to indemnify and hold Seller harmless from and against, and to
reimburse Seller with respect to, any claim, loss, damage, liability, cost or
expense (including reasonable attorney’s fees and disbursements) which may be
sustained or suffered by Seller arising out of, based upon, or by reason of,
Buyer’s negligence or the negligence of any Permittee, including without
limitation all costs, expenses and liability arising out of a claim for personal
injury or death to persons or damage to property.

     

    (f)           Buyer
does hereby indemnify and forever defend and hold Seller, and its members,
agents, and employees harmless from any loss, liability, suit, action judgment,
or claim (including, without limitation, reasonable attorneys’ fees and court
costs and any mechanics’ or other liens which may be filed or asserted against
any of the Premises) which any of the indemnified parties may suffer or sustain,
or be threatened with, as a result of or in connection with the exercise by
Buyer of its rights (and that of its Permittees) to enter upon the Property or
the office of Seller or to conduct such examinations, inspections or tests
pursuant to this Section 15.  Notwithstanding the foregoing or
anything else to the contrary contained in this Agreement, Buyer’s obligations
under this Section shall survive the Closing or any termination of this
Agreement.

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    (g)           Notwithstanding
anything herein to the contrary, from the Effective Date to the earlier of the
Closing Date or termination of this Agreement, Seller shall provide to each
Permittee, within two (2) business days of Buyer’s written request therefore, to
the extent reasonably available to Seller without the expenditure by Seller of
any sum in excess of Five Hundred Dollars and 00/100 ($500.00) per Premises,
such documents, instruments, agreements and items as the Permittee may
reasonably request.

     

    16.           Waivers.  No
delay or omission by either of the parties hereto in exercising any right or
power accruing upon the non-compliance or failure of performance by the other
party under the provisions of this Agreement shall impair any such right or
power or be construed to be a waiver thereof.  A waiver by either of
the parties hereto of any of the covenants, conditions or agreements hereof to
be performed by the other party shall not be construed to be a waiver of any
subsequent breach thereof or of any other covenant, condition or agreement
herein contained.

     

    17.           Remedies
Cumulative.  All rights, privileges and remedies afforded the
parties by this Agreement shall be deemed cumulative and the exercise of one of
such remedies shall not be deemed to be a waiver of any other right, remedy or
privilege provided for herein.

     

    18.           Applicable
Law.  This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Tennessee, without regard to conflict
of laws rules.

     

    19.           Partial
Invalidity.  If any provisions of this Agreement or the
application thereof to any party or circumstances shall, to any extent, be
invalid or unenforceable, the remainder of this Agreement shall not be affected
thereby and each provision of this Agreement shall be valid and enforceable to
the fullest extent permitted by law; provided, that the transaction as a
whole as contemplated hereby can still be substantially completed.

     

    Notices.  Every
notice, demand or consent or other document or instrument required or desired to
be given to either of the parties hereto shall be in writing and shall be deemed
to have been given on the date of such notice, demand or consent if delivered by
electronic mail, facsimile or overnight courier (with evidence of transmission)
or mailed by registered or certified United States mail, postage prepaid, return
receipt requested, addressed to the respective parties as hereafter set forth,
unless otherwise changed in writing by the parties hereto:

     

    
      
        
          
            	
                    In
      the case of a notice to Seller:

                  	 	
                    Education
      Realty Trust, Inc. (“EDR”)

                    530
      Oak Court Drive,  Suite 300

                    Memphis,
      TN  38117

                    Attn:  Chief
      Financial Officer

                               rbrown@edrtrust.com

                    Attn:  Chief
      Investment Officer

                               ttrubiana@edrtrust.com

                    Phone: (901)
      259-2500

                    Fax:      (901)
      259-2594

                  

          

        

      

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    
      
        	
                With
      a copy of such notice to (delivery of which shall not constitute notice to
      Seller):

              	 	
                Martin
      Tate, Morrow & Marston, P.C.

                6410
      Poplar Avenue, Suite 1000

                Memphis,
      TN  38119

                Attn:  Lee
      Welch, Esq.

                          lwelch@martintate.com

                Phone:
      (901) 259-2524

                Fax:     (901)
      259-2594

              

      

    

    

    
      
        
          	
                  In
      the case of a notice to Buyer to:

                	 	
                  c/o
      Kayne Anderson Real Estate Partners

                  200
      Business Park Drive, Suite 309

                  Armonk,
      New York 10504

                  Attn:
      Frank L. Duemmler, Esq.

                  Phone:
      (914)-940-6042

                  Fax:  (914)-273-1904

                  Email:
      fduemmler@kaynecapital.com

                
	 
      	 	 
      
	
                  With
      a copy of such notice to (delivery of which shall not constitute notice to
      Buyer):

                	 	
                  Robinson
      & Cole LLP

                  280
      Trumbull Street

                  Hartford,
      Connecticut 06103

                  Attn:
      Samuel L. Molinari, Esq.

                  Phone:
      (860)-275-8397

                  Fax:
      (860)-275-8299

                  Email:
      smolinari@rc.com

                

        

      

    

    

     All
such copies shall be sent in the manner set forth above in this Section
20.  Each Seller acknowledges and agrees that any notice given
by Buyer to EDR in accordance with this Section 20 shall
constitute notice to each Seller.

     

    20.           Successors and
Assigns.  This Agreement shall be binding upon and shall inure
to the benefit of the respective successors and assigns of the parties
hereto.

     

    21.           Section Headings and
Exhibits.  The section headings in this Agreement are for
convenience and for reference only and in no way define or limit the scope or
contents of this Agreement or in any way affect its provisions.  All
exhibits attached hereto are hereby made a part of this
Agreement.

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    22.           Assignment.  Buyer
may assign this Agreement, and all of its rights hereunder, with respect to all
or any of the Premises, to any one or more entities controlled by it and each
such entity shall have all of the rights, remedies and obligations of Buyer with
respect to the Premises in question.  In the event of an assignment by
Buyer, Buyer shall nonetheless remain liable for all of the obligations under
this Agreement, including those obligations that survive this
Agreement.

     

    23.           Survival.  Seller’s
and Buyer’s representations, warranties, covenants, and indemnifications set
forth in this Agreement shall survive the Closing Date for a period of twelve
(12) months thereafter, provided, however, that nothing herein shall be deemed a
release or limitation of Seller’s liability under the Deed’s warranty of
title.  By executing below, EDR agrees to guaranty to Buyer and its
assignees the prompt performance of all obligations of each Seller hereunder,
including, but not limited to, each Seller’s representations, warranties,
covenants and indemnifications, as set forth in this Agreement, and to indemnify
and hold the Buyer, and each of its assignees, harmless from and against, and to
reimburse Buyer, and each of its assignees with respect to, any claim, loss,
damage, liability, cost or expense (including reasonable attorney’s fees and
disbursements) which may be sustained or suffered by Buyer, or any of its
assignees, arising out of, based upon, or by reason of, a default by any Seller
of its obligations hereunder, including without, limitation, if any of the
representations and warranties of Seller hereunder proves to be untrue,
incorrect or intentionally misleading.

     

    24.           Counterparts.  This
Agreement may be signed in several counterparts, each of which shall be deemed
an original, and all such counterparts shall constitute one and the same
instrument.  Any counterpart to which is attached the signatures of
all parties (including a facsimile or electronic version thereof) shall
constitute an original of this Agreement.

     

    25.           Modifications.  This
Agreement may only be modified, amended or supplemented by an agreement in
writing signed by Seller and Buyer.

     

    26.           Effective
Date.  Seller and Buyer shall each deliver four fully executed
copies of this Agreement (including by facsimile or electronic mail) to the
Escrow Agent, including signatures of Broker, if any.  Upon Escrow
Agent’s receipt of four fully executed copies of this Agreement from Buyer and
Seller, Escrow Agent shall notify each of Buyer and Seller by facsimile or
electronic mail that it has received four fully executed copies of this
Agreement from Buyer and Seller and the date of such notice shall be considered
the “Effective Date” for purposes of this Agreement.

     

    27.           Confidentiality.  Sellers,
and each of their respective partners, employees and agents, shall each maintain
the confidentiality of the terms and provisions of this Agreement and any and
all information provided by Buyer to Sellers.  Buyer, and its
managers, members, directors, officers, and agents, shall:  (a)
maintain the confidentiality of the results of investigation and all documents
delivered by the Sellers and (b) the confidentiality of the terms and provisions
of this Agreement.  Neither Sellers nor Buyer, nor their respective
officers, directors, partners, employees or agents, shall disclose either the
terms and provision of this Agreement or the results of any investigations made
or information delivered in connection herewith, except to its lenders,
employees, agents, attorneys, accountants, prospective investors, consultants
and advisors who need or deem it useful to review such terms, conditions and
information in connection with the transaction contemplated hereby provided,
however, nothing in this Agreement shall, or shall be deemed to, restrict or
limit Sellers in complying with securities laws, rules and regulations,
provided, that Buyer shall have the right to approve any filing or disclosure
that references Buyer or any of its affiliates, including any assignee of Buyer,
or the transaction contemplated by this Agreement, which approval it agrees not
to unreasonably withhold, delay or condition.

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

     

    28.           Time.  Time
is of the essence in the performance of each of the parties’ respective
agreements and obligations contained herein.

     

    29.           No Recording. This
Agreement shall not be recorded by either party, but Buyer and Seller agree that
upon request from the other to execute a Memorandum of this Agreement containing
the information permitted or required by the laws of the jurisdiction in which a
Premises for recordation in the proper office for the recording of deeds in the
jurisdiction in which a Premises is located,; provided, however, the cost of
recording shall be paid by the party requesting the recording.

     

    30.           Entire
Agreement.  This Agreement, together with the Exhibits hereto,
sets forth all of the agreements, representations, warranties and conditions of
the parties hereto with respect to the subject matter hereof, and supersedes all
prior or contemporaneous letters of intent, agreements, representations,
warranties and conditions.

     

    THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.

     

    
      
        
          
            
              	
                      SELLERS:

                    
	 
      
	
                      EDR
      BERKELEY PLACE LIMITED

                      PARTNERSHIP,
      a Delaware limited partnership

                    
	 
      	 
      
	
                      By:

                    	
                      EDR
      Berkeley Place GP, LLC,

                    
	 
      	
                      a
      Delaware limited liability company,

                    
	 
      	
                      its
      general partner

                    
	 
      	 
      
	
                      By:

                    	
                      Education
      Realty Operating Partnership,

                      LP,
      a Delaware limited partnership

                    
	 
      	
                      its
      managing member

                    
	 
      	 
      
	
                      By:

                    	
                      Education
      Realty OP GP, Inc.,

                    
	 
      	
                      a
      Delaware corporation,

                    
	 
      	
                      its
      general partner

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Olan Brevard

                    
	 
      	
                      Olan
      Brevard

                    
	 
      	
                      Vice
      President

                    
	 
      	 
      
	
                      WESTERN
      PLACE, LLC,

                    
	
                      a
      Georgia limited liability company

                    
	 
      	 
      
	
                      By:

                    	
                      EDR
      Manager, LLC,

                    
	 
      	
                      a
      Delaware limited liability company,

                    
	 
      	
                      its
      manager

                    
	 
      	 
      
	
                      By:

                    	
                      Education
      Realty Operating Partnership,

                      LP,
      a Delaware limited partnership

                    
	 
      	
                      its
      managing member

                    
	 
      	 
      
	
                      By:

                    	
                      Education
      Realty OP GP, Inc.,

                    
	 
      	
                      a
      Delaware corporation,

                    
	 
      	
                      its
      general partner

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Olan Brevard

                    
	 
      	
                      Olan
      Brevard

                    
	 
      	
                      Vice
      President

                    

            

          

        

      

    

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              	
                      EDR
      BG, LP,

                    
	
                      a
      Delaware limited partnership

                    
	 
      	 
      
	
                      By:

                    	
                      EDR
      BG GP, LLC,

                    
	 
      	
                      a
      Delaware limited liability company,

                    
	 
      	
                      its
      general partner

                    
	 
      	 
      
	
                      By:

                    	
                      Education
      Realty Operating Partnership,

                      LP,
      a Delaware limited partnership

                    
	 
      	
                      its
      managing member

                    
	 
      	 
      
	
                      By:

                    	
                      Education
      Realty OP GP, Inc.,

                    
	 
      	
                      a
      Delaware corporation,

                    
	 
      	
                      its
      general partner

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Olan Brevard

                    
	 
      	
                      Olan
      Brevard

                    
	 
      	
                      Vice
      President

                    

            

          

        

      

    

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     

    
      
        
          	
                  STATESBORO
      PLACE, LLC,

                
	
                  a
      Georgia limited liability company

                
	 
      	 
      
	
                  By:

                	
                  Education
      Realty Operating Partnership,

                  LP,
      a Delaware limited partnership

                
	 
      	
                  its
      manager

                
	 
      	 
      
	
                  By:

                	
                  Education
      Realty OP GP, Inc.,

                
	 
      	
                  a
      Delaware corporation,

                
	 
      	
                  its
      general partner

                
	 
      	 
      
	
                  By:

                	
                  /s/ Olan Brevard

                
	 
      	
                  Olan
      Brevard

                
	 
      	
                  Vice
      President

                

        

      

    

    

    
      
        	
                FOR
      PURPOSES OF THE OBLIGATIONS

                SET
      FORTH IN SECTION 23 OF THE

                AGREEMENT
      ONLY:

              
	 
      
	
                EDUCATION
      REALTY TRUST, INC.

              

      

    

    

    
      
        	
                By

              	
                /s/Olan
Brevard

              

      

    

    

    
      
        	
                Name:

              	
                Olan
Brevard

              

      

    

    

    
      
        	
                Title:

              	
                Vice
President

              

      

    

    

    
      
        	
                BUYER:

              
	
                KAREP
      REIT I, INC., a Delaware corporation

              
	 
      
	
                By

              	
                /s/ Frank L.
  Duemmler

              

      

    

    
      
        	
                Name:

              	
                Frank L.
Duemmler

              

      

    

    
      
        	
                Title:

              	
                Vice
President

              

      

    

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

     

    The
Escrow Agent hereby executes this Agreement solely for the purpose of
acknowledging receipt of the Deposit and acknowledging and agreeing to be bound
by the provisions of this Agreement relating to the Deposit.

    

    
      
        	
                ESCROW
      AGENT:

              
	 
      	 
      
	
                By:

              	
                /s/ Yosi (Joe)
  Benlevi

              

      

    

    
      
        	
                Name:

              	
                Yosi (Joe)
  Benlevi

              

      

    

    
      
        	
                Title:

              	
                V.P. & Senior Underwriting
      Counsel

              

      

    

    

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    

    LIST
OF EXHIBITS

    

    
      
        
          	
                  Exhibit
      A-1

                	 
      	
                  Berkeley
      Real Property Legal Description

                
	 
      	 
      	 
      
	
                  Exhibit
      A-2

                	 
      	
                  Western
      Place Real Property Legal Description

                
	 
      	 
      	 
      
	
                  Exhibit
      A-3

                	 
      	
                  Statesboro
      Place Real Property Legal Description

                
	 
      	 
      	 
      
	
                  Exhibit
      A-4

                	 
      	
                  The
      Gables Real Property Legal Description

                
	 
      	 
      	 
      
	
                  Exhibit
      B

                	 
      	
                  List
      of Excluded Personal Property

                
	 
      	 
      	 
      
	
                  Exhibit
      C-1

                	 
      	
                  List
      of Service and Maintenance Contracts

                
	 
      	 
      	 
      
	
                  Exhibit
      C-2

                	 
      	
                  List
      of Guaranties, Warranties and Permits

                
	 
      	 
      	 
      
	
                  Exhibit
      D

                	 
      	
                  Form
      of Bill of Sale

                
	 
      	 
      	 
      
	
                  Exhibit
      E

                	 
      	
                  Form
      of Assignment (contracts, etc.)

                
	 
      	 
      	 
      
	
                  Exhibit
      F

                	 
      	
                  Form
      of Assignment of Leases (tenant leases & security
      deposits)

                
	 
      	 
      	 
      
	
                  Exhibit
      G

                	 
      	
                  Tenant
      Letters

                
	 
      	 
      	 
      
	
                  Exhibit
      H

                	 
      	
                  Rent
      Roll

                
	 
      	 
      	 
      
	
                  Exhibit
      I

                	 
      	
                  List
      of Employees

                
	 
      	 
      	 
      
	
                  Exhibit
      J

                	 
      	
                  Real
      and Personal Property Taxes

                
	 
      	 
      	 
      
	
                  Exhibit
      K

                	 
      	
                  Litigation

                

        

      

    

    

    
      
        
          	
                  Schedule
      2

                	 
      	
                  Due
      Diligence Checklist

                
	 
      	 
      	 
      
	
                  Schedule 3(a)(iii)

                	 
      	
                  Purchase
      Price Allocations

                
	 
      	 
      	 
      
	
                  Schedule
      3(b)

                	 
      	
                  Wire
      Instructions

                

        

      

    

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    EXHIBIT
A-1

    

    BERKELEY

    REAL PROPERTY LEGAL
DESCRIPTION –

    

    All that
certain lot, piece or tract of land in the County of Pickens, State of South
Carolina, lying and being situate on Abel Road containing 13.03 Acres more or
less and being designated at Tract A as shown on a plat of survey entitled
“Boundary Survey for Berkley Place, LLC”, dated October 30, 1998, prepared by
Johnson Surveying, Inc., and having according to said plat the following metes
and bounds to wit:

    

    BEGINNING
at an Old Nail in the center of Abel Rd; said Nail being the common corner of
Abel Baptist Church and Tract A as herein described; thence running with the
center of Abel Road the following six courses:

    1) N
31-55-51 E a distance or 138.93 feet to a Nail; 2) N 20-16-39 E a distance of
54.59 feet; 3) N 02-17-52 E a distance of 209.01 feet to a Nail; 4) along the
chord of a curve concave to the right and having a radius of 136.67 feet, N
21-01-53 E a distance of 89.48 feet to an Old Nail; 5) N 41-47-17 E a
distance of 26.93 feet to an Old Nail; 6) along the chord of a curve concave to
the left and having a radius of 79.88 feet, N 14-58-54 E a distance of 71.94
feet to a Nail; thence S 42-31-34 E a distance of 96.15 feet to a 1/2"Rebar;
thence N 42-52-33 E a distance of 276.32 feet to a 1/2"Rebar; thence S 46-58-53
E a distance of 328.77 feet to a 1/2"Rebar; thence S 00-03-41 E a distance of
272.39 feet to a 1/2"Rebar; thence S 04-41-00 W a distance of 75.19 feet to a
1/2"Rebar; thence S 09-34-58 W a distance of 74.28 feet to a 1/2"Rebar; thence S
13-21-23 W a distance of 404.78 feet to a 1/2"Rebar; thence S 04-26-38 W a
distance of 88.72 feet to a 1/2"Rebar; thence S 01-28-26 E a distance of 89.72
feet to a 1/2"Rebar; thence S 08-23-57 E a distance of 83.39 feet to a
1/2"Rebar; thence S 02-39-29 W a distance of 214.57 feet to a 1/2"Rebar; thence
N 76-45-08 W a distance of 29.38 feet to a 3/8"Rebar; thence N 76-32-06 W a
distance of 125.45 feet to a 1"Pipe; thence N 71-54-38 W a distance of 73.67
feet to a 3/4"Pipe; N 01-59-56 E a distance of 358.78 feet to a 3/8"Rebar;
thence N 28-01-36 W a distance of 120.12 feet to a 1"Pipe; thence N 31-01-41 W a
distance of 66.89 feet to a 1"Pipe; thence N 45-00-25 W a distance of 354.48
feet to an Old Nail in the center of Abel Road; said Old Nail being the POINT
AND PLACE OF BEGINNING.

    

    This is a
portion of the same property conveyed to Sara Kinsler Colvin and Joseph Kinsler
from the Estate of Blanche Madden Kinsler who died Testate on May 11, 1987, by
Device and Descent filed in Book 30, at Page 185 and Pickens County Probate File
87-ES-39-00188.

    

    TMS #
Portion of D20-30-0056

    

    Title Company needs to
verify

    
      
         

      

      
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    EXHIBIT
A-2

    

    WESTERN
PLACE

    REAL PROPERTY LEGAL
DESCRIPTION

    

    Lot 9 – 1, containing 11,778 acres, as
shown on Amendment No. 2 to the Plat of Nashville Road Center Subdivision
recorded in Plat Cabinet 31, Pages 178 through 180 in the Clerk’s Office of
Warren County (the “Plat”).

    

    TOGETHER WITH and SUBJECT TO easements,
covenants and restrictions contained in (a) Reciprocal Easement Agreement
recorded in Book 731, Page 752, aforesaid records, (b) Restrictive Covenants
Agreement recorded in Book 731, Page 785, aforesaid records and (c) the
Plat.

    

    SUBJECT TO taxes for 1999 which are
prorated between the parties.

    

    SUBJECT TO easements, covenants and
restrictions of record in the Clerk's Office of Warren County.

    

    The above-described property is a
portion of the property conveyed to Grantor by deed from Conley B. Larmon, et al., recorded in Deed
Book 731, Page 744, aforesaid records.

    
      
         

      

      
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    EXHIBIT
A-3

    

    STATESBORO
PLACE

    REAL PROPERTY LEGAL
DESCRIPTION

    

    ALL that
tract or parcel of land situate, lying and being in the 209th G.M.D.,
Bulloch County, Georgia, containing 26.6 acres, more or less, as shown on a plat
entitled "Survey for John H. Barrett", dated August 29, 1989, by Lamar O.
Reddick, Registered Land Surveyor, said plat being recorded at Plat Book 31,
page 112, in the Office of the Clerk of the Superior Court of Bulloch County,
Georgia, and being incorporated herein by reference for a more particular
description.

    
      
         

      

      
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    EXHIBIT
A-4

    

    THE
GABLES

    REAL PROPERTY LEGAL
DESCRIPTION

    

    BEING
KNOWN AS LOT 2 OF THE CHANDLER AND ROBINSON SUBDIVISION AS REVISED IN PLAT BOOK
30 PAGE 20 ON FILE IN THE WARREN COUNTY CLERK'S OFFICE IN BOWLING GREEN,
KENTUCKY AND MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS
FOLLOWS:

    

    NOTE:  ALL
SET IRON PINS ARE 5/8" X 30" REBAR HAVING A PLASTIC CAP IMPRINTED WITH "JAMES R.
ADAMS 1891".

    

    BEGINNING
AT AN IRON PIN FOUND IN THE NORTHWEST RIGHT-OF-WAY INTERSECTION OF CREASON
STREET AND ROBINSON AVENUE; THENCE WITH THE RIGHT-OF-WAY LINE OF CREASON STREET
S 40 DEG 57'40" W, 210.23 FEET TO AN IRON PIN FOUND; THENCE WITH A CURVE TO THE
RIGHT HAVING A RADIUS OF 507.03 FEET, AN ARC LENGTH OF 197.47 FEET AND A CHORD
BEARING AND DISTANCE OF S 52 DEG 07'06" W, 196.22 FEET TO AN IRON PIN FOUND;
THENCE S 63 DEG 16'31" W, 202.60 FEET TO AN IRON PIN FOUND, CORNER COMMON TO LOT
1 OF PLAT BOOK 27, PAGE 151; THENCE LEAVING SAID RIGHT-OF-WAY AND WITH THE
COMMON LINE OF SAID LOT 1 N 51 DEG 41'29" W, 340.78 FEET TO AN IRON PIN FOUND IN
THE SOUTHEAST RIGHT-OF-WAY LINE OF THE CSX RAILROAD; THENCE LEAVING SAID COMMON
LINE AND WITH THE RIGHT-OF-WAY LINE OF CSX RAILROAD N 37 DEG 41'31" E, 562.99
FEET TO AN IRON PIN FOUND LOCATED IN THE SOUTHWEST RIGHT-OF-WAY OF ROBINSON
AVENUE; THENCE LEAVING SAID RAILROAD RIGHT-OF-WAY AND WITH THE RIGHT-OF-WAY LINE
OF ROBINSON AVENUE S 54 DEG 10'50" E, 489.38 FEET TO THE POINT OF BEGINNING,
CONTAINING 5.840 ACRES, AND BEING ALL OF LOT 2 OF CHANDLER AND ROBINSON
SUBDIVISION REVISED AS RECORDED IN PLAT BOOK 30, PAGE 20, AT THE WARREN COUNTY
CLERK'S OFFICE, BOWLING GREEN, KENTUCKY. BEING ALL OF THE PROPERTY CONVEYED TO
THE GABLES, LLC BY DEED DATED JULY 23, 1996 AND OF RECORD IN DEED BOOK 729, PAGE
783 IN THE WARREN COUNTY CLERK'S OFFICE AND BEING THE SAME PROPERTY CONVEYED
FROM THE GABLES, LLC, A KENTUCKY LIMITED LIABILITY COMPANY TO ALLEN & O'HARA
EDUCATIONAL PROPERTIES, LLC, A TENNESSEE LIMITED LIABILITY COMPANY, BY DEED
DATED MARCH 6, 2000, AND OF RECORD IN DEED BOOK 799 PAGE 387, IN THE WARREN
COUNTY CLERK’S OFFICE.

    
      
         

      

      
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    EXHIBIT
B

    LIST OF EXCLUDED PERSONAL
PROPERTY

    (Applies to all Properties
except where noted)

    

    
      	
              1.

            	
              Telephone
      Services:  Telephone service will be cut off at
      Closing.  Office and administrative  telephone
      equipment will remain at the  property.  Telephone
      exchange numbers will be  ported/transferred to the
      Premises.

            

    

    

    
      	
              2.

            	
              Property
      Websites:  Existing websites will be shut down at Closing
      and not transferred.  Domain  names will be
      transferred to Buyer.

            

    

    

    
      	
              6.

            	
              AMSI (eSite, ePO and
      eService):  Access to these systems (application and
      data) will be  shut  down at time at
      Closing.

            

    

    

    
      	
              7.

            	
              Property Solutions
      (Resident Pay, Resident Works, Prospect Portal):  Access
      to these systems  (application and data) will be shut down at
      Closing.

            

    

    

    
      	
              8.

            	
              Performance Management
      System (PM):  Access to these systems (application and
      data)  will be  shut down at
  Closing.

            

    

    

    
      	
              9.

            	
              EDR
      Intranet:  Access to this system (application and
      content) will be shut down at
Closing.

            

    

    

    
      	
              10.

            	
              Company
      E-Mail:  Access to each e-mail account (including saved
      e-mails) will be   shut down at
  Closing.

            

    

    

    
      	
              12.

            	
              Symantec Anti-Virus
      Software:  Remains the property of Sellers or their
      affiliates.

            

    

    

    
      	
              13.

            	
              “Western Place”,
      “Statesboro Place” and “Berkeley Place”:  Sellers have no
      right transfer  the name “Place” in conjunction with these
      Premises.  Buyer shall have a period of
      thirty  (30)  days after the Closing Date to remove
      any such signs referencing “Western Place”,  “Statesboro Place”
      and “Berkeley Place” from the applicable
  Premises.

            

    

    

    Seller
shall afford Buyer, during the period after Closing, with reasonable access to
Sellers’ (or their affiliates’) proprietary software for the purpose of copying
information generated by such proprietary software with regard to the Premises,
however, Seller does not require Buyer to change the name of any streets or to
remove street signs.

    
      
         

      

      
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    EXHIBIT
C-1

    LIST OF SERVICE AND
MAINTENANCE CONTRACTS

    

    See
attached

    

    Buyer has
requested that Seller terminate the copier and scanner
contracts.  Seller has agreed to terminate such copier and scanner
contracts as may be terminated upon thirty (30) days notice and without any cost
to Seller.

     

    
      
        
        

      

      
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    EXHIBIT
C-2

    LIST OF GUARANTIES,
WARRANTIES AND PERMITS

    

    NONE,
except any manufacturer’s warranties for replacement appliances

    (e.g.,
hot water heaters, air conditioning units, garbage disposals
etc.)

    
      
         

      

      
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    EXHIBIT
D

    FORM OF BILL OF
SALE

    

    BILL
OF SALE

    

    FOR
VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the
undersigned, _______________________, a _______________________ (herein referred
to as “Seller”),
does hereby grant, sell, convey and transfer to  a  (herein
after referred to as “Buyer”),
any and all right, title and interest which Seller may have in the personal
property and intangibles described in Exhibit A.  Seller represents to
the Buyer that Seller has good title to the personal property and intangibles,
subject to the claims or rights of no person.

       

    IN
WITNESS WHEREOF, the parties have executed this Bill of Sale as of this ______
day of ___________, _______

    

    
      
        
          
            	
                    SELLER:

                  
	 
      	 
      	 
      
	 
      	
                    By

                  	 
      
	 
      	Name:	
                     

                  
	 
      	

                    Title:

                  	
                     

                  

          

        

      

    

    

    
      
        
          	
                  State
      of

                	
                  )

                	 
      
	
                  County
      of

                	
                  )

                	
                  ss.:

                

        

      

    

    

    On the ______ day of ____________,
_____ before me, the undersigned personally appeared
______________________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to
the within instrument and acknowledged to me that he/she executed the same in
his/her capacity, and that by his/her signature on the instrument, the
individual, or the person on behalf of which the individual acted, executed the
instrument.

    

    
      
        
          	 
      
	
                  Notary
      Public

                

        

      

    

     

    My
Commission Expires:_________________

    
      
         

      

      
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    EXHIBIT
E

    FORM OF
ASSIGNMENT

    

    ASSIGNMENT

     

    THIS
ASSIGNMENT, is executed as of the ____ day of __________, ________, by and
between ______________________, a ________________________ (hereinafter referred
to as “Assignor”),
and,
a  (herein referred to as “Assignee”).

       

    WITNESSETH

    

    WHEREAS,
Assignor has of even date herewith conveyed to Assignee the land, with the
buildings and the improvements located thereon, more particularly described on
Exhibit A
attached hereto and by this reference made a part hereof (herein referred to as
the “Property”);
and

     

    WHEREAS,
in connection with the conveyance of the Property, Assignor and Assignee intend
that Assignor’s rights, title and interest in, to and under any and all service
contracts, construction contracts, guaranties, warranties, certificates,
agreements and other matters stated herein be assigned and transferred to
Assignee.

     

    NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows:

     

    1.           Service
Contracts.  Assignor hereby assigns, conveys, transfers and
sets over to the Assignee any and all of Assignor’s right, title and interest in
and to those certain operating and service contracts and agreements relating to
the Property, including, but not limited to, the operating and service contracts
and agreements listed in Exhibit B-1 hereto
(collectively, the “Service
Contracts”).  Assignor agrees to cancel any other operating and
service contracts and agreements relating to the Property and shall indemnify
and hold Assignee harmless from any claims or losses under such other operating
and service contracts and agreements.

     

    2.           Warranties
and Guaranties.  Assignor hereby assigns, conveys, transfers
and sets over unto Assignee any and all of Assignor’s right, title and interest
in and to all of those assignable guaranties, warranties and agreements from any
contractors, sub-contractors, vendors or suppliers regarding their performance,
quality of workmanship and quality of materials supplied in connection with the
construction, manufacture, development, installation and operation of any and
all fixtures, equipment, items of personal property and improvements located on
or used in connection with the Property, including, but not limited to, those
guaranties, warranties and agreements set forth in Exhibit B-2 hereof
(the “Warranties”).

     

    3.           Governmental
Approvals and Certificates.  Assignor hereby assigns,
transfers, conveys and sets over unto Assignee any and all of Assignor’s right,
title and interest, if any, in and under any zoning, construction, development,
use, occupancy and operating permits relating to the Property, and all other
permits, approvals and certificates obtained in connection with the Property,
including, but not limited to, the permits, approvals and certificates attached
hereto as Exhibit
C (the “Governmental
Permits”).

    
      
         

      

      
        Page 1 of 8

        
          

        

      

      
         

      

    

     

    4.           Trade
Name.  Assignor hereby transfers, sets over, conveys and
assigns to Assignee any and all of Assignor’s rights, title and interest to
utilize the names: “_____________” in connection with the Property, including
the right to use trade names, logos, service marks and similar design
identification marks in connection with the Property (the “Trade
Names”).  Assignor hereby agrees to discontinue the use of such
trade names, service marks, logo and similar design identification marks, and to
execute any release, relinquishment or transfer thereof that may be required by
law.

     

    OR, for
Western Place, Statesboro Place and Berkeley:  Assignee acknowledges
that Assignor has no right to transfer any interest or right to use
“__________Place”, and Assignee agrees that it will not use the term “Place” in
conjunction with the Premises.

     

    5.           Successors
and Assigns.  This Assignment shall inure to the benefit of,
and be binding upon, the successors, executors, administrators, legal
representatives and assigns of the parties hereto.

     

    6.           Governing
Law.  This Assignment shall be construed under and enforced in
accordance with the laws of the State of ____________, without regard to
conflict of law rules.

     

    7.           Assignee’s
Assumption.  Assignee hereby
assumes all of the obligations of the Assignor, from and after the date hereof,
under and with respect to the Service Contracts, Warranties, Governmental
Permits, and Trade Names which are the subject of this Assignment, the
obligations of which are to be performed after the date
hereof.  Assignee agrees to indemnify Assignor for all such
obligations arising on or after the date hereof and Assignor shall indemnify
Assignee for all such obligations arising prior to the date hereof.

     

    8.           Disclaimer.  This
Assignment is given by Assignor to Assignee in connection with the sale of the
Property by Assignor to the Assignee and no portion of the consideration paid by
Assignee to Assignor for the Property has been separately allocated to the
Service Contracts, Warranties, Governmental Permits or Trade Names assigned
hereunder by Assignor to Assignee.

     

    [THE
BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties have executed this Assignment as of the date set
forth above.

      

    
      
        
          
            
              	
                      ASSIGNOR:

                    
	 
      	 
      
	 
      	
                      By

                    	 
      
	 
      	
                      Name:

                    
	 
      	
                      Title:

                    

            

          

        

      

    

    

    
      
        
          	
                  ASSIGNEE:

                
	 
      
	
                  _____________________________________________,
      LLC

                

        

      

    

    

    
      
        
          	
                  By:

                	 
      

        

      

    

    

    
      
        
          	
                  Name:

                	 
      

        

      

    

    

    
      
        
          	
                  Title:

                	 
      

        

      

    

    
      
         

      

      
        Page 3 of 8

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  State
      of

                	
                  )

                	 
      
	
                  County
      of

                	
                  )

                	
                  ss.:

                

        

      

    

    

    On the
______ day of _____________, ______ before me, the undersigned personally
appeared ______________________________, personally known to me or proved to me
on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he/she executed
the same in his/her capacity, and that by his/her signature on the instrument,
the individual, or the person on behalf of which the individual acted, executed
the instrument.

     

    
      
        
          	 
      
	
                  Notary
      Public

                

        

      

    

    

    My
Commission Expires:_________________

    

    
      
        	
                State
      of

              	
                )

              	 
      
	
                County
      of

              	
                )

              	
                ss.:

              

      

    

    

    On the
______ day of _________, _______ before me, the undersigned personally appeared
______________________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to
the within instrument and acknowledged to me that he/she executed the same in
his/her capacity, and that by his/her signature on the instrument, the
individual, or the person on behalf of which the individual acted, executed the
instrument.

     

    
      
        
          	 
      
	
                  Notary
      Public

                

        

      

    

    

    My
Commission Expires:_________________

    
      
         

      

      
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    EXHIBIT
A

    DESCRIPTION OF
PROPERTY

    
      
         

      

      
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    EXHIBIT
B-1

    SERVICE
CONTRACTS

    
      
         

      

      
        Page 6 of 8

        
          

        

      

      
         

      

    

    EXHIBIT
B-2

    WARRANTIES

    
      
         

      

      
        Page 7 of 8

        
          

        

      

      
         

      

    

    EXHIBIT
C

    GOVERNMENTAL
PERMITS

    
      
         

      

      
        Page 8 of 8

        
          

        

      

      
         

      

    

    

    EXHIBIT
F

    FORM OF ASSIGNMENT OF
LEASES

     

    ASSIGNMENT OF TENANT LEASES
AND SECURITY DEPOSITS

    

    FOR
VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the
undersigned, ____________________, a ______________________
(herein referred to as “Assignor”),
does hereby transfer and assign to a (herein referred to as “Assignee”),
any and all rights, title and interest which Assignor may have as landlord or
otherwise, in all of the leases and rental agreements with tenants located on
the real property described on Exhibit “A” attached hereto and made a part
hereof, which leases and rental agreements (including tenant security and other
deposits, with all interest thereon) are set forth in the rent roll attached
hereto marked Exhibit “B” (the “Rent
Roll”).  Assignor represents that such Rent Roll is true,
accurate and correct as of the date hereof.

     

    Assignor
agrees to indemnify and hold harmless Assignee from and against all obligations
and liabilities arising out of Assignor’s performance or failure to perform
Assignor’s obligations as landlord under such leases and rental agreements up to
and including the date hereof, including, but not limited to, any and all
liabilities with respect to any claims for security deposits as set forth in the
Rent Roll which security deposits have been paid over to Assignee, the receipt
of which Assignee hereby acknowledges.

     

    Assignee
hereby accepts and agrees to perform all of the terms, covenants and conditions
of such leases and rental agreements on the part of the lessor therein required
to be performed from and after the date hereof, but not prior thereto,
including, but not limited to, the obligation to repay in accordance with the
terms of such leases and rental agreements to the lessees thereunder, security
and other deposits, but only to the extent such deposits have been disclosed by
Assignor as set forth in said Rent Roll and actually delivered to
Assignee.  Assignee covenants and agrees to indemnify, and hold
harmless Assignor from and against any and all losses, liability, claims or
causes of action existing in favor of, or asserted by, the lessees under such
leases and rental agreements, including but not limited to any and all
liabilities with respect to any claims for security deposits as set forth in the
Rent Roll which security deposits have been paid over or credited to Assignee,
arising out of or relating to Assignee’s failure to perform any of the
obligations as lessor under such leases and rental agreements after the date
hereof, but not prior thereto.

     

    [THE
BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        Page 1 of
5

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have executed this Assignment as of the ____ day of
_____________, ____.

       

    
      
        
          
            	
                    ASSIGNOR:

                  
	 
      
	 
      
	
                    By

                  	 
      
	
                    Name:

                  
	
                    Title:

                  

          

        

      

    

    

    
      
        
          
            
              	
                      ASSIGNEE:

                    
	_____________________________________________,
      LLC
	 
      
	
                      By:

                    	 
      

            

          

        

      

    

    

    
      
        
          	
                  Name:

                	 
      

        

      

    

    

    
      
        
          	
                  Title:

                	 
      

        

      

    

    
      
         

      

      
        Page 2 of
5

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  State
      of

                	
                  )

                	 
      
	
                  County
      of

                	
                  )

                	
                  ss.:

                

        

      

    

    

    On the
______ day of _____________, ________ before me, the undersigned personally
appeared ______________________________, personally known to me or proved to me
on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he/she executed
the same in his/her capacity, and that by his/her signature on the instrument,
the individual, or the person on behalf of which the individual acted, executed
the instrument.

     

    
      
        
          	 
      
	
                  Notary
      Public

                

        

      

    

    

    My
Commission Expires:___________________________

    

    
      
        
          	
                  State
      of

                	
                  )

                	 
      
	
                  County
      of

                	
                  )

                	
                  ss.:

                

        

      

    

    

    On the
______ day of _____________, _____ before me, the undersigned personally
appeared ______________________________, personally known to me or proved to me
on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he/she executed
the same in his/her capacity, and that by his/her signature on the instrument,
the individual, or the person on behalf of which the individual acted, executed
the instrument.

     

    
      
        
          	 
      
	
                  Notary
      Public

                

        

      

    

    

    My
Commission Expires:__________________________

    
      
         

      

      
        Page 3 of
5

        
          

        

      

      
         

      

    

    EXHIBIT
A

    DESCRIPTION OF
PROPERTY

    
      
         

      

      
        Page 4 of
5

        
          

        

      

      
         

      

    

    EXHIBIT
B

    RENT
ROLL

    
      
         

      

      
        Page 5 of
5

        
          

        

      

      
         

      

    

     

    EXHIBIT
G

    TENANT
LETTERS

    

    Letterhead
of Seller

    

    [Date]

    

    Dear
Tenant of _______________ Apartments

    

    
      	
              RE:

            	
              Lease
      (the “Lease”) of
      Unit ____________ in
______________________

            

    

    

    Ladies
and Gentlemen:

    

    Please be
advised that, effective as of the date of this letter, [insert Buyer’s name] (“Buyer”) has acquired the
__________________________, and in connection with the sale, (i) [insert name of Seller]
(“Seller”) has conveyed
to Buyer all of Seller’s right, title, and interest under the Lease,
(ii) Seller has transferred to Buyer any and all unapplied and refundable
portions of your security and/or other deposits, and (iii) Buyer has
assumed all rights and obligations under the Lease arising from and after the
date of this letter.  From and after the date of this letter, you are
advised to perform all of your duties under the Lease directly to
Buyer.  Please make all rent payments and provide all notices under
the Lease to Buyer at:

     

    [Insert
Buyer’s name and address]

    

    Sincerely,

    

    [Seller’s
Name]

    
      
         

      

      
        Page 1 of
1

        
          

        

      

      
         

      

    

    

    EXHIBIT
H

    RENT
ROLL

    

    To be
provided separately

    
      
         

      

      
        Page 1 of 1

        
          

        

      

      
         

      

    

    

    EXHIBIT
I

    LIST OF
EMPLOYEES

    

    NONE

    
      
         

      

      
        Page 1 of 1

        
          

        

      

      
         

      

    

    

    EXHIBIT
J

    REAL AND PERSONAL PROPERTY
TAXES

    
      
         

      

      
        Page 1 of 1

        
          

        

      

      
         

      

    

    

    EXHIBIT
K

    LITIGATION

    

    NONE

    
      
         

      

      
        Page 1 of
1

        
          

        

      

      
         

      

    

    SCHEDULE
2

    DUE DILIGENCE
CHECKLIST

    

    
      	
              1.

            	
              Team directory, including
      attorneys, consultants, contractors, lenders,
  etc.

            

    

    
      	
              2.

            	
              The past three (3) years detailed
      operating history (each by month), including
      concessions.

            

    

    
      	
              3.

            	
              Current Year Budget and Next Year
      Budget (if available)

            

    

    
      	
              4.

            	
              YTD Detailed Operating
      Statement

            

    

    
      	
              5.

            	
              Current Balance
      Sheet

            

    

    
      	
              6.

            	
              Occupancy history (past three
      years)

            

    

    
      	
              7.

            	
              Current Rent Roll with security
      deposits showing tenant name, apt. area, lease start and termination date,
      vacancies, reimbursements, overlapping renewals or new
      leases

            

    

    
      	
              8.

            	
              Trailing 24 month Rental
      Collections Report

            

    

    
      	
              9.

            	
              Trailing 24 month Incident
      Reports

            

    

    
      	
              10.

            	
              Trailing 24 month Work Order
      Reports

            

    

    
      	
              11.

            	
              Most recent tax
      bill(s)/assessment and last two years of all tax bills for the property,
      including real estate and personal property
  tax.

            

    

    
      	
              12.

            	
              Last 12 months of utility bills
      (gas, electric, oil, etc).  Any correspondence with the utility
      companies.  Are there any utility service issues relating to the
      Property?

            

    

    
      	
              13.

            	
              Current employee list with
      salaries and pay scale

            

    

    
      	
              14.

            	
              Copy of a standard lease (and all
      addendums)

            

    

    
      	
              15.

            	
              Current Market
      reports

            

    

    
      	
              16.

            	
              Current Preleasing
      Report

            

    

    
      	
              17.

            	
              Most recent Title
      Report

            

    

    
      	
              18.

            	
              Most recent Property
      Appraisal

            

    

    
      	
              19.

            	
              Most recent Property
      Survey.  Advise if there are any easements or other agreements
      relating to the Property and provide a copy of the documents if there
      are.  Include any agreements with adjacent Property owners or
      anyone else relating to the use of the Property or that would otherwise
      affect the Property.

            

    

    
      	
              20.

            	
              Copies of all agreements that
      affect the property, including ground lease, reciprocal use agreements,
      warranties, third-party service contracts, rooftop and signage leases
      and/or licenses, .

            

    

    
      	
              21.

            	
              Copies of permits, certificates
      and licenses needed to operate
      property.  Including  Certificates of Occupancy and
      Permits for Food Service, Pool, Sanitation, Leasing, Boiler, Sprinkler,
      etc.

            

    

    
      	
              22.

            	
              Owner’s insurance certificates
      and any insurance losses for 3
years.

            

    

    
      	
              23.

            	
              Owner's insurance casualty
      report.

            

    

    
      	
              24.

            	
              List of personal property
      included and excluded in the Property
  sale.

            

    

    
      	
              25.

            	
              List any Trademarks, Copyrighted
      Material and Websites associated with the
  Property

            

    

    
      	
              26.

            	
              Provide the Property's
      Telecommunications Contracts and
Provider

            

    

    
      	
              27.

            	
              Provide the Property's Website
      Hosting Information / Contracts and
  Provider

            

    

    
      	
              28.

            	
              Any
      reports concerning the condition of the Property and operation of the
      Property, including Property Condition Assessment Report(s), engineering
      report(s), fire flow / hydrant flow test, elevator inspections,
      etc.

            

    

    
      
         

      

      
        Page 1 of 2

        
          

        

      

      
         

      

    

    

    
      	
              29.

            	
              Last Termite Inspection
      Report

            

    

    
      	
              30.

            	
              Deferred maintenance
      schedule

            

    

    
      	
              31.

            	
              CapEx for past five years and
      projected CapEx for next five
years

            

    

    
      	
              32.

            	
              Any environmental reports,
      environmental insurance policies, O&M plans and other environmentally
      related documents.

            

    

    
      	
              33.

            	
              Advise and provide associated
      documentation for any outstanding legal matters anticipated or pending
      with any person, partnership, corporation, governmental agency, or other
      entity pertaining to, or that would have an effect on, the
      Property.

            

    

    
      	
              34.

            	
              All municipal correspondence
      affecting the property and/or proposed improvements.  Include
      any correspondence with any government agency regarding highway projects
      or any proposed taking of land on this
  site.

            

    

    
      	
              35.

            	
              Maps or pictures of the
      property.  Include those that show the property/properties in
      relation to the University or
College.

            

    

    
      	
              36.

            	
              Plans and specifications for the
      existing building and site
construction.

            

    

    
      	
              37.

            	
              Name of all architects,
      engineers, and major sub-contractors, material-men and suppliers used in
      construction and development of
property

            

    

    
      	
              38.

            	
              Name and Contact Info of all
      Vendors and Service
Contractors

            

    

    
      
         

      

      
        Page 2 of 2

        
          

        

      

      
         

      

    

    

    SCHEDULE
3(a)(iii)

    PURCHASE
PRICE ALLOCATIONS

    

    
      
        
          
            
              
                
                  	
                          Property

                        	 	
                          Total

                        	 
	
                          The
      Gables - 305

                        	 	$	5,034,250	 
	 
      	 	 	 	 
	
                          The
      Pointe at Southern - 370

                        	 	 	11,437,500	 
	 
      	 	 	 	 
	
                          Berkeley
      Place - 371

                        	 	 	13,250,000	 
	 
      	 	 	 	 
	
                          Western
      Place - 372

                        	 	 	9,451,250	 
	 
      	 	 	 	 
	
                          Total
      Purchase Price

                        	 	$	39,173,000	 

                

              

            

          

        

      

    

     

    
      
         

      

      
        Page 1 of
1

        
          

        

      

      
         

      

    

    

    SCHEDULE
3(b)

    WIRE
INSTRUCTIONS

    

    To be
provided to Escrow Agent prior to Closing

    
      
         

      

      
        Page 1 of
1

        
          

        

      

      
         

      

    

    EXHIBIT
C-1

    LIST OF SERVICE AND
MAINTENANCE CONTRACTS

    

    SERVICE
CONTRACTS AND LEASES FORM

    BERKELEY

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        VENDOR

                                      	 	
                                        DESCRIPTION

                                      	 	
                                        DATES OF

                                        TERM

                                      	 	
                                        ANNUAL

                                        AMOUNT

                                      	 	 	
                                        NO. OF

                                        INSTALLMENTS

                                      	 	
                                        NOTES

                                      
	
                                        Pavlov

                                      	 	
                                        Data
      Information

                                      	 	
                                        6/08
      - 6/1/2013

                                      	 	$	62,669.00	 	 	
                                        12

                                      	 	 
      
	
                                        Pavlov

                                      	 	
                                        Video
      Information

                                      	 	
                                        11/09
      - 10/31/2014

                                      	 	$	28,464.00	 	 	
                                        12

                                      	 	 
      
	
                                        Blue
      Ridge Security

                                      	 	
                                        Alarm
      Monitoring

                                      	 	
                                        6/13/07
      - 6/13/12

                                      	 	$	3,960.00	 	 	
                                        12

                                      	 	 
      
	
                                        Gregory's
      Pest Control

                                      	 	
                                        Termite
      Baiting

                                      	 	
                                        10/01/09
      - 10/01/10

                                      	 	$	10,136.00	 	 	
                                        1

                                      	 	 
      
	
                                        Gregory's
      Pest Control

                                      	 	
                                        Monthly
      Pest Control

                                      	 	
                                        1/11/09
      - 1/11/10

                                      	 	$	2,400.00	 	 	
                                        12

                                      	 	
                                        MTM

                                      
	
                                        Clemson
      Central Storage

                                      	 	
                                        Storage
      Building

                                      	 	
                                        8/20/2009

                                      	 	$	600.00	 	 	
                                        12

                                      	 	
                                        Notice
      5 days before ending

                                      
	
                                        Apartment
      Finder

                                      	 	
                                        Ad
      in Apt Finder Mag

                                      	 	
                                        1/1/08-12/31/08

                                      	 	$	3,300.00	 	 	
                                        12

                                      	 	
                                        MTM
      60 day written notice to cancel

                                      
	
                                        Diamond
      Rentals

                                      	 	
                                        Trash
      Compactor Rental

                                      	 	
                                        8/15/08
      - 8/15/09

                                      	 	$	4,200.00	 	 	
                                        12

                                      	 	
                                        MTM
      60 day written notice to cancel

                                      
	
                                        Toshiba
      Business Solutions

                                      	 	
                                        Copier

                                      	 	
                                        7/14/10
      - 10/14/13

                                      	 	$	4,260.00	 	 	
                                        12

                                      	 	 
      
	
                                        Clean
      Cut Service

                                      	 	
                                        Landscaping

                                      	 	
                                        7/1/2010
      - 6/30/2011

                                      	 	$	33,600.00	 	 	
                                        12

                                      	 	 
      
	
                                        Tiger
      Sports Marketing

                                      	 	
                                        Marketing

                                      	 	
                                        8/1/10
      - 6/1/11

                                      	 	$	13,095.50	 	 	
                                        1

                                      	 	 
      
	
                                        Tiger
      Sports Marketing

                                      	 	
                                        Marketing

                                      	 	
                                        8/1/11-6/1/12

                                      	 	$	13,750.00	 	 	
                                        1

                                      	 	 
      
	
                                        IRIO

                                      	 	
                                        Mobile
      Marketing - Text Alert

                                      	 	
                                        1/1/10
      - 1/31/2010

                                      	 	$	2,148.00	 	 	
                                        12

                                      	 	
                                        Send
      written notice at least (30) days before service commitment
      ends

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        Page 1 of
4

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    SERVICE CONTRACTS AND LEASES FORM

                                  
	
                                    BOWLING GREEN - WESTERN PLACE

                                  
	
                                    VENDOR

                                  	 	
                                    DESCRIPTION

                                  	 	
                                    DATES OF TERM

                                  	 	
                                    ANNUAL

                                    AMOUNT

                                  	 	 	
                                    NO. OF

                                    INSTALLMENTS

                                  	 	
                                    NOTES

                                  
	
                                    Pavlov

                                  	 	
                                    Internet

                                  	 	
                                    6/01/08
      - 6/01/13

                                  	 	$	64,109.00	 	 	
                                    12

                                  	 	 
      
	
                                    Insight

                                  	 	
                                    Resident
      Cable

                                  	 	
                                    11/01/06
      -10/31/11

                                  	 	$	45,684.00	 	 	
                                    12

                                  	 	 
      
	
                                    Canon

                                  	 	
                                    Copier
      Leasing

                                  	 	
                                    3/01/08
      - 8/10/2010

                                  	 	$	1,571.00	 	 	
                                    12

                                  	 	
                                    MTM
      60 day notice to cancel

                                  
	
                                    Calvert
      Springs

                                  	 	
                                    Water
      Cooler Rental

                                  	 	
                                    MTM

                                  	 	$	600.00	 	 	
                                    12

                                  	 	 
      
	
                                    Quality
      Lawns and Landscape

                                  	 	
                                    Lawn
      Care Service

                                  	 	
                                    MTM

                                  	 	$	29,532.00	 	 	
                                    12

                                  	 	 
      
	
                                    Scott
      Waste

                                  	 	
                                    Waste
      Removal

                                  	 	
                                    MTM

                                  	 	$	7,740.00	 	 	
                                    12

                                  	 	 
      
	
                                    Network
      Communications

                                  	 	
                                    Apartment
      Finder

                                  	 	
                                    MTM

                                  	 	$	5,760.00	 	 	
                                    12

                                  	 	 
      
	
                                    Diamond
      Rentals

                                  	 	
                                    Compactor
      Lease

                                  	 	
                                    MTM

                                  	 	$	4,452.00	 	 	
                                    12

                                  	 	 
      
	
                                    IRIO

                                  	 	
                                    mobile
      marketing

                                  	 	
                                    1/1/2010
      - 12/31/2010

                                  	 	$	2,148.00	 	 	
                                    12

                                  	 	 
      
	
                                    Overholt

                                  	 	
                                    Storage

                                  	 	
                                    MTM

                                  	 	$	2,220.00	 	 	
                                    12

                                  	 	 
      

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        Page 2 of
4

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              SERVICE CONTRACTS AND LEASES FORM

                                            
	
                                              BOWLING GREEN - GABLES

                                            
	
                                              VENDOR

                                            	 	
                                              DESCRIPTION

                                            	 	
                                              DATES OF TERM

                                            	 	
                                              ANNUAL AMOUNT

                                            	 	 	
                                              NO. OF

                                              INSTALLMENTS

                                            	 	
                                              NOTES

                                            
	
                                              Insight
      Communication

                                            	 	
                                              Resident
      Cable

                                            	 	
                                              8/10  -7/13

                                            	 	$	17,798.00	 	 	
                                              12

                                            	 	 
      
	
                                              Pavlov
      Media

                                            	 	
                                              Internet

                                            	 	
                                              11/08-
      10/13

                                            	 	$	39,751.00	 	 	
                                              12

                                            	 	 
      
	
                                              Calvert
      Springs

                                            	 	
                                              Water
      Cooler Rental

                                            	 	
                                              1/1/10
      - 12/31/11

                                            	 	$	216.00	 	 	
                                              12

                                            	 	 
      
	
                                              Royal
      Lawn

                                            	 	
                                              Lawn
      Care Service

                                            	 	
                                              1/1/10
      - 12/31/10

                                            	 	$	17,664.00	 	 	
                                              12

                                            	 	 
      
	
                                              Scott
      Waste

                                            	 	
                                              Waste
      Removal

                                            	 	
                                              7/1/10
      - 6/30/11

                                            	 	$	6,252.00	 	 	
                                              12

                                            	 	 
      
	
                                              Sprint

                                            	 	
                                              On-Call
      Cell Phone

                                            	 	
                                              10/16/08
      -10/15/10

                                            	 	$	636.00	 	 	
                                              12

                                            	 	 
      
	
                                              Overholt

                                            	 	
                                              Storage

                                            	 	
                                              MTM

                                            	 	$	2,400.00	 	 	
                                              12

                                            	 	 
      
	
                                              Network
      Comm

                                            	 	
                                              Apartment
      Finder

                                            	 	
                                              1/10-
      12/10

                                            	 	$	3,480.00	 	 	
                                              12

                                            	 	 
      
	
                                              Lang
      Company

                                            	 	
                                              Service
      Contract for Office Copier

                                            	 	
                                              MTM

                                            	 	$	708.00	 	 	
                                              12

                                            	 	 
      
	
                                              AA
      Rid All

                                            	 	
                                              Termite
      Control

                                            	 	
                                              MTM

                                            	 	
                                              $66
      Per Building

                                            	 	 	
                                              4

                                            	 	 
      
	
                                              IRIO

                                            	 	
                                              Text
      Alert - Mobile Marketing

                                            	 	
                                              1/1/10
      - 12/31/2010

                                            	 	$	2,148.00	 	 	
                                              12

                                            	 	
                                              Send
      written notice at least (30) days before service commitment
      ends

                                            

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        Page 3 of
4

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                SERVICE CONTRACTS AND LEASES FORM

                              
	
                                THE POINTE AT SOUTHERN

                              
	
                                VENDOR

                              	 	
                                DESCRIPTION

                              	 	
                                DATES OF TERM

                              	 	
                                ANNUAL

                                AMOUNT

                              	 	 	
                                NO. OF

                                INSTALLMENTS

                              	 	
                                NOTES

                              
	
                                Pavlov

                              	 	
                                Data
      Information

                              	 	
                                5/08
      -5/13

                              	 	$	67,985.00	 	 	
                                12

                              	 	 
      
	
                                Pavlov

                              	 	
                                Video
      Information

                              	 	
                                5/09
      - 5/14

                              	 	$	30,191.00	 	 	
                                12

                              	 	 
      
	
                                ADT

                              	 	
                                Alarm
      Monitoring

                              	 	
                                1/1/10
      - 12/31/10

                              	 	$	5,160.00	 	 	
                                12

                              	 	 
      
	
                                Knox
      Pest Control

                              	 	
                                Pest
      Control

                              	 	
                                MTM

                              	 	$	3,025.00	 	 	
                                12

                              	 	
                                MTM
      Contact - $252.12 Monthly

                              
	
                                CIT
      Technologies

                              	 	
                                Copier
      Rental

                              	 	
                                10/4/08-10/3/11

                              	 	$	3,235.00	 	 	
                                12

                              	 	 
      
	
                                R&R
      Landscape

                              	 	
                                Landscaping
      Service

                              	 	
                                MTM

                              	 	$	38,400.00	 	 	
                                12

                              	 	
                                MTM
      Contract - $3200 monthly

                              
	
                                Rental
      Guide

                              	 	
                                Marketing
      Publication

                              	 	
                                Quarterly

                              	 	$	3,400.00	 	 	
                                4

                              	 	 
      
	
                                Call
      Max

                              	 	
                                Answering
      Service

                              	 	
                                MTM

                              	 	$	2,340.00	 	 	
                                12

                              	 	
                                MTM
      30 day notice to cancel - $195.00 monthly

                              
	
                                Knox
      Pest Control

                              	 	
                                Annual
      Termite Bond

                              	 	
                                Annual

                              	 	$	1,400.00	 	 	
                                1

                              	 	
                                Due
      in March each Year

                              
	
                                Fire
      Protection Services

                              	 	
                                Annual
      Fire Inspection

                              	 	
                                Annual

                              	 	$	1,350.00	 	 	
                                1

                              	 	 
      
	
                                Dustbusters

                              	 	
                                Monthly
      Clubhouse Cleaning

                              	 	
                                MTM

                              	 	$	2,100.00	 	 	
                                12

                              	 	
                                MTM
      Contract - $175 Monthly

                              
	
                                Logan
      Hagan

                              	 	
                                Helium
      Tank Rental

                              	 	
                                MTM

                              	 	$	84.00	 	 	
                                12

                              	 	
                                MTM
      Contract - $7 Monthly

                              
	
                                ABR

                              	 	
                                Monthly
      Usage for Copier

                              	 	 
      	 	
                                Varies

                              	 	 	
                                12

                              	 	
                                Monthly
      Usage Expense - Varies MTM

                              
	
                                Monster
      Storage

                              	 	
                                Storage
      Rental

                              	 	
                                MTM

                              	 	$	1,104.00	 	 	
                                12

                              	 	
                                MTM
      - $92 monthly

                              
	
                                Apartment
      Guide

                              	 	
                                Marketing
      Publication

                              	 	
                                1/1/10
      - 12/31/10

                              	 	$	7,080.00	 	 	
                                12

                              	 	
                                590
      monthly

                              
	
                                IRIO

                              	 	
                                Mobile
      Marketing and Alert

                              	 	
                                1/1/10
      - 12/31/2010

                              	 	$	2,418.00	 	 	
                                12

                              	 	
                                Send
      written notice at least (30) days before service commitment
      ends

                              
	
                                Delta
      Com

                              	 	
                                Monthly
      Maintenance Fee

                              	 	 
      	 	$	360.00	 	 	
                                12

                              	 	
                                Maint.
      Fee on Phone System ) $30
monthly

                              

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        Page 4 of
4

        
          

        

      

      
         

      

    

    EXHIBIT
C-1

    LIST OF SERVICE AND
MAINTENANCE CONTRACTS

    

    SERVICE
CONTRACTS AND LEASES FORM

    Chase at
Murray

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      VENDOR

                                    	 
      	
                                      DESCRIPTION

                                    	 
      	
                                            DATES OF TERM      

                                    	 
      	
                                      ANNUAL

                                      AMOUNT

                                    	 
      	
                                      NO. OF

                                      INSTALLMENTS

                                    	 
      	
                                      NOTES

                                    
	
                                      Canon
      Financial

                                    	 
      	
                                      Scanner
      Lease

                                    	 
      	
                                      03/01/2008 - 08/01/2010

                                    	 
      	
                                      $

                                    	
                                      528.00

                                    	 
      	
                                      MTM

                                    	 
      	 
      
	
                                      Canon
      Financial

                                    	 
      	
                                      Copier
      Lease

                                    	 
      	
                                      03/01/2008 - 03/01/2010

                                    	 
      	
                                      $

                                    	
                                      1,656.00

                                    	 
      	
                                      MTM

                                    	 
      	 
      
	
                                      New
      Wave

                                    	 
      	
                                      Cable

                                    	 
      	
                                      11/01/2006 - 10/31/2011

                                    	 
      	
                                      $

                                    	
                                      19,171.00

                                    	 
      	
                                      12

                                    	 
      	 
      
	
                                      Southern
      Pride

                                    	 
      	
                                      Landscape
      Contract

                                    	 
      	
                                      01/01/2010 - 12/31/2010

                                    	 
      	
                                      $

                                    	
                                      24,115.00

                                    	 
      	
                                      12

                                    	 
      	 
      
	
                                      Pavlov

                                    	 
      	
                                      Internet

                                    	 
      	
                                      06/01/2008 - 06/01/2013

                                    	 
      	
                                      $

                                    	
                                      54,444.00

                                    	 
      	
                                      12

                                    	 
      	 
      
	
                                      IRIO

                                    	 
      	
                                      Mobile
      Mktg and Alert

                                    	 
      	
                                      01/01/2010 - 12/31/2010

                                    	 
      	
                                      $

                                    	
                                      2,148.00

                                    	 
      	
                                      12

                                    	 
      	
                                      Send
      written notice at least (30) days before service commitment
      ends

                                    
	
                                      Diamond
      Rentals

                                    	 
      	
                                      Trash
      Compactor Rental

                                    	 
      	
                                      04/04/2000 - 08/01/2009

                                    	 
      	
                                      $

                                    	
                                      4,452.00

                                    	 
      	
                                      MTM

                                    	 
      	 
      
	
                                      Servall

                                    	
                                        

                                    	
                                      Extermination

                                    	
                                        

                                    	
                                      Bi-monthly

                                    	
                                        

                                    	
                                      $

                                    	
                                      650.00

                                    	
                                        

                                    	
                                      MTM

                                    	
                                        

                                    	 
      

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        Page 1 of
4

        
          

        

      

      
         

      

    

    

    SERVICE CONTRACTS AND LEASES FORM

    Reserve
at Jacksonville

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        VENDOR

                                      	 
      	
                                        DESCRIPTION

                                      	 
      	
                                            DATES OF TERM    

                                      	 
      	
                                        ANNUAL AMOUNT

                                      	 
      	
                                        NO. OF

                                        INSTALLMENTS

                                      	 
      	
                                        NOTES

                                      
	
                                        Canon
      Financial Services

                                      	 
      	
                                        Copier
      Lease

                                      	 
      	
                                        8/10/2010 - 8/9/2014

                                      	 
      	
                                        $

                                      	
                                        2,580.00

                                      	 
      	
                                        12

                                      	 
      	 
      
	
                                        ABS

                                      	 
      	
                                        Copier
      Service Agreement

                                      	 
      	
                                        MTM

                                      	 
      	
                                        $

                                      	
                                        420.00

                                      	
                                         
      

                                      	
                                        MTM

                                      	 
      	 
      
	
                                        Pavlov

                                      	 
      	
                                        Internet

                                      	 
      	
                                        06/01/2008 - 06/01/2013

                                      	 
      	
                                        $

                                      	
                                        67,428.00

                                      	 
      	
                                        12

                                      	 
      	 
      
	
                                        Diamond
      Rentals

                                      	 
      	
                                        Compactor
      Lease

                                      	 
      	
                                        8/1/2008 - 8/1/2011

                                      	 
      	
                                        $

                                      	
                                        13,356.00

                                      	 
      	
                                        3YR

                                      	 
      	 
      
	
                                        Knox
      Pest Control

                                      	 
      	
                                        Extermination

                                      	 
      	
                                        2/2009 - 2/2011

                                      	 
      	
                                        $

                                      	
                                        1,800.00

                                      	 
      	
                                        2YR

                                      	 
      	 
      
	
                                        Knox
      Pest Control

                                      	 
      	
                                        Termite
      Bond

                                      	 
      	
                                        5/1/2010 - 5/2011

                                      	 
      	
                                        $

                                      	
                                        1,250.00

                                      	
                                         
      

                                      	
                                        12

                                      	 
      	 
      
	
                                        ADT
      Security System

                                      	 
      	
                                        Office
      Alarm System

                                      	 
      	
                                        MTM

                                      	 
      	
                                        $

                                      	
                                        372.00

                                      	 
      	
                                        12

                                      	 
      	 
      
	
                                        Allied
      Waste

                                      	 
      	
                                        Waste
      Removal

                                      	 
      	
                                        MTM

                                      	 
      	 
      	
                                        per pound

                                      	
                                         
      

                                      	
                                        MTM

                                      	 
      	 
      
	
                                        All
      Tech

                                      	 
      	
                                        Fire
      Alarms

                                      	 
      	
                                        MTM

                                      	 
      	
                                        $

                                      	
                                        605.00

                                      	 
      	
                                        12

                                      	 
      	 
      
	
                                        Call
      Max

                                      	 
      	
                                        Office
      Answering Service

                                      	 
      	
                                        MTM

                                      	 
      	
                                        $

                                      	
                                        2,340.00

                                      	 
      	
                                        12

                                      	 
      	 
      
	
                                        Classified
      Venture

                                      	 
      	
                                        Online
      Advertisement

                                      	 
      	
                                        MTM

                                      	 
      	
                                        $

                                      	
                                        4,068.00

                                      	 
      	
                                        12

                                      	 
      	 
      
	
                                        Cable
      One

                                      	 
      	
                                        Resident
      Cable

                                      	 
      	
                                        3/8/2000 - 3/8/2005

                                      	 
      	
                                        $

                                      	
                                        22,272.00

                                      	 
      	
                                        12

                                      	 
      	
                                        Now
      YTY - expires 3/8/2011

                                      
	
                                        Jacksonville
      Apartment Guide

                                      	 
      	
                                        Advertising

                                      	 
      	
                                        8/2010 - 8/31/2011

                                      	 
      	
                                        $

                                      	
                                        2,940.00

                                      	 
      	
                                        12

                                      	 
      	 
      
	
                                        IRIO

                                      	 
      	
                                        Mobile
      Marketing Alert

                                      	 
      	
                                        1/1/2010 - 12/31/2010

                                      	 
      	
                                        $

                                      	
                                        2,148.00

                                      	 
      	
                                        12

                                      	 
      	
                                        Send
      written notice at least (30) days before service commitment
      ends

                                      
	
                                        Pitney
      Bowes

                                      	 
      	
                                        Postage
      Machine

                                      	 
      	
                                        MTM

                                      	 
      	
                                        $

                                      	
                                        345.00

                                      	 
      	
                                        12

                                      	 
      	 
      
	
                                        Game
      Cock Mini Storage

                                      	 
      	
                                        Storage

                                      	 
      	
                                        MTM

                                      	 
      	
                                        $

                                      	
                                        900.00

                                      	 
      	
                                        12

                                      	 
      	 
      
	
                                        AT&T
      Advertising

                                      	 
      	
                                        Advertising
      in Yellow Pages

                                      	 
      	
                                        5/2/2010 - 5/2/2011

                                      	 
      	
                                        $

                                      	
                                        2,555.00

                                      	 
      	
                                        12

                                      	 
      	 
      
	
                                        Sprint

                                      	 
      	
                                        Maintenance
      Radios

                                      	 
      	
                                        MTM

                                      	 
      	
                                        $

                                      	
                                        1,884.00

                                      	 
      	
                                        12

                                      	 
      	 
      
	
                                        Sauls
      Landscaping

                                      	
                                          

                                      	
                                        Landscaping
      Service

                                      	
                                          

                                      	
                                        MTM

                                      	
                                          

                                      	
                                        $

                                      	
                                        1,800.00

                                      	
                                          

                                      	
                                        12

                                      	
                                          

                                      	 
      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        Page 2 of
4

        
          

        

      

      
         

      

    

    

    SERVICE
CONTRACTS AND LEASES FORM

    Martin
Place

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      VENDOR

                                    	 
      	
                                      DESCRIPTION

                                    	 
      	
                                          DATES OF TERM    

                                    	 
      	
                                      ANNUAL

                                      AMOUNT

                                    	 
      	
                                      NO. OF

                                      INSTALLMENTS

                                    	 
      	
                                      NOTES

                                    
	
                                      Canon

                                    	 
      	
                                      Copier
      Rental

                                    	 
      	
                                      3/1/2008 - 8/1/2010 

                                    	 
      	
                                      $

                                    	
                                      2,551.44

                                    	 
      	
                                      12

                                    	 
      	 
      
	
                                      Charter

                                    	 
      	
                                      Cable

                                    	 
      	
                                      MTM

                                    	 
      	
                                      $

                                    	
                                      23,891.64

                                    	 
      	
                                      12

                                    	 
      	 
      
	
                                      Diamond
      Rentals

                                    	 
      	
                                      Trash
      Compactor Rental

                                    	 
      	
                                      MTM

                                    	 
      	
                                      $

                                    	
                                      4,609.56

                                    	 
      	
                                      12

                                    	 
      	 
      
	
                                      IRIO

                                    	 
      	
                                      Mobile
      Marketing - Text Alert

                                    	 
      	
                                      1/1/2010 - 12/31/2010

                                    	 
      	
                                      $

                                    	
                                      2,148.00

                                    	 
      	
                                      12

                                    	 
      	
                                      Send
      written notice at least (30) days before service commitment
      ends

                                    
	
                                      Southern
      Pride

                                    	 
      	
                                      Landscape
      Contract

                                    	 
      	
                                      1/1/2010-12/31/2010

                                    	 
      	
                                      $

                                    	
                                      27,420.00

                                    	 
      	
                                      12

                                    	 
      	 
      
	
                                      Servall

                                    	 
      	
                                      Pest
      Control

                                    	 
      	
                                      MTM

                                    	 
      	
                                      $

                                    	
                                      3,600.00

                                    	 
      	
                                      12

                                    	 
      	 
      
	
                                      Servall

                                    	 
      	
                                      Termite
      Contract

                                    	 
      	
                                      1/1/2010 - 12/31/2010

                                    	 
      	
                                      $

                                    	
                                      375.00

                                    	 
      	
                                      1

                                    	 
      	 
      
	
                                      Servall

                                    	 
      	
                                      Sentricon
      Termite Contract (200)

                                    	 
      	
                                      4/05/2010 - 4/05/2011

                                    	 
      	
                                      $

                                    	
                                      280.00

                                    	 
      	
                                      1

                                    	 
      	 
      
	
                                      Servall

                                    	 
      	
                                      Sentricon
      Termite Contract (800)

                                    	 
      	
                                      4/14/2010 - 4/14/2011 

                                    	 
      	
                                      $

                                    	
                                      280.00

                                    	 
      	
                                      1

                                    	 
      	 
      
	
                                      Servall

                                    	 
      	
                                      Sentricon
      Termite Contract (500)

                                    	 
      	
                                      3/18/2010 - 3/18/2011

                                    	 
      	
                                      $

                                    	
                                      280.00

                                    	 
      	
                                      1

                                    	 
      	 
      
	
                                      Servall

                                    	 
      	
                                      Sentricon
      Termite Contract (400)

                                    	 
      	
                                      7/7/2010 - 7/7/2011

                                    	 
      	
                                      $

                                    	
                                      280.00

                                    	 
      	
                                      1

                                    	 
      	 
      
	
                                      Servall

                                    	 
      	
                                      Sentricon
      Termite (600)

                                    	 
      	
                                      9/02/2010-9/02/2011

                                    	 
      	
                                      $

                                    	
                                      280.00

                                    	 
      	
                                      1

                                    	 
      	 
      
	
                                      Pavlov

                                    	 
      	
                                      Internet

                                    	 
      	
                                      6/1/2008 - 6/1/2013

                                    	 
      	
                                      $

                                    	
                                      56,678.00

                                    	 
      	
                                      12

                                    	 
      	 
      
	
                                      Barker
      Brothers Waste

                                    	 
      	
                                      Waste
      Removal

                                    	 
      	
                                      MTM

                                    	 
      	 
      	 
      	 
      	
                                      based
      per ton

                                    	 
      	 
      
	
                                      Pro-Tec
      Security

                                    	
                                        

                                    	
                                      Fire
      Monitoring

                                    	
                                        

                                    	
                                      12/4/2009 - 12/4/2010

                                    	
                                        

                                    	
                                      $

                                    	
                                      3,078.00

                                    	
                                        

                                    	
                                      12

                                    	
                                        

                                    	 
      

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
         

      

      
        Page 3 of
4

        
          

        

      

      
         

      

    

    

    SERVICE
CONTRACTS AND LEASES FORM

    Troy
Place

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  VENDOR

                                	 
      	
                                  DESCRIPTION

                                	 
      	
                                      DATES OF TERM    

                                	 
      	
                                  ANNUAL AMOUNT

                                	 
      	
                                  NO. OF

                                  INSTALLMENTS

                                	 
      	
                                  NOTES

                                
	
                                  Canon

                                	 
      	
                                  Copier
      Leasing

                                	 
      	
                                  8/1/2010

                                	 
      	
                                  $

                                	
                                  1,620.00

                                	 
      	
                                  12

                                	 
      	
                                  MTM

                                
	
                                  Canon

                                	 
      	
                                  Copier
      Scanner

                                	 
      	
                                  8/1/2010

                                	 
      	
                                  $

                                	
                                  500.00

                                	 
      	
                                  12

                                	 
      	
                                  MTM

                                
	
                                  Pavlov

                                	 
      	
                                  Internet

                                	 
      	
                                  5/2008 - 5/2013

                                	 
      	
                                  $

                                	
                                  43,968.00

                                	 
      	
                                  12

                                	 
      	 
      
	
                                  International
      Sports Properties

                                	 
      	
                                  Advertising

                                	 
      	
                                  1/1/2011 - 12/31/2012

                                	 
      	
                                  $

                                	
                                  8,000.00

                                	 
      	
                                  Annually

                                	 
      	
                                  Payment
      due 1/1/2011

                                
	
                                  ADT

                                	 
      	
                                  Office
      Security Monitoring

                                	 
      	
                                  4/29/2009 - 4/29/2014

                                	 
      	
                                  $

                                	
                                  332.00

                                	 
      	
                                  Quarterly

                                	 
      	 
      
	
                                  Alltech
      Sytems

                                	 
      	
                                  Fire
      Panel Monitoring

                                	 
      	
                                  8/1/2010 - 8/1/2011 

                                	 
      	
                                  $

                                	
                                  6,594.00

                                	 
      	
                                  12

                                	 
      	
                                  30
      Day cancel notice

                                
	
                                  Diamond
      Rentals

                                	 
      	
                                  Trash
      Compactor Rental

                                	 
      	
                                  8/1/2008 - 8/1/2013

                                	 
      	
                                  $

                                	
                                  4,200.00

                                	 
      	
                                  12

                                	 
      	 
      
	
                                  IRIO

                                	 
      	
                                  Mobile
      Alert/ Marketing

                                	 
      	
                                  1/1/2010 - 12/31/2010

                                	 
      	
                                  $

                                	
                                  2,148.00

                                	 
      	
                                  12

                                	 
      	
                                  Send
      written notice at least (30) days before service commitment
      ends

                                
	
                                  Troy
      Apartment Guide

                                	
                                    

                                	
                                  Advertisement

                                	
                                    

                                	
                                  1/1/2010 - 12/31/2010 

                                	
                                    

                                	
                                  $

                                	
                                  5,640.00

                                	
                                    

                                	
                                  Annually

                                	
                                    

                                	 
      

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
         

      

      
        Page 4 of
4

        
          

        

      

      
         

      

    

    EXHIBIT
E

    FORM OF
ASSIGNMENT

     

    ASSIGNMENT

     

    THIS
ASSIGNMENT, is executed as of the ____ day of __________, ________, by and
between ______________________, a ________________________ (hereinafter referred
to as “Assignor”),
and __________________,
a ___________________ (herein referred to as “Assignee”).

    

    WITNESSETH

    

    WHEREAS,
Assignor has of even date herewith conveyed to Assignee the land, with the
buildings and the improvements located thereon, more particularly described on
Exhibit A
attached hereto and by this reference made a part hereof (herein referred to as
the “Property”);
and

     

    WHEREAS,
in connection with the conveyance of the Property, Assignor and Assignee intend
that Assignor’s rights, title and interest in, to and under any and all service
contracts, construction contracts, guaranties, warranties, certificates,
agreements and other matters stated herein be assigned and transferred to
Assignee.

     

    NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows:

     

    1.           Service
Contracts.  Assignor hereby assigns, conveys, transfers and
sets over to the Assignee any and all of Assignor’s right, title and interest in
and to those certain operating and service contracts and agreements relating to
the Property, including, but not limited to, the operating and service contracts
and agreements listed in Exhibit B-1 hereto
(collectively, the “Service
Contracts”).  Assignor agrees to cancel any other operating and
service contracts and agreements relating to the Property and shall indemnify
and hold Assignee harmless from any claims or losses under such other operating
and service contracts and agreements.

     

    2.           Warranties
and Guaranties.  Assignor hereby assigns, conveys, transfers
and sets over unto Assignee any and all of Assignor’s right, title and interest
in and to all of those assignable guaranties, warranties and agreements from any
contractors, sub-contractors, vendors or suppliers regarding their performance,
quality of workmanship and quality of materials supplied in connection with the
construction, manufacture, development, installation and operation of any and
all fixtures, equipment, items of personal property and improvements located on
or used in connection with the Property, including, but not limited to, those
guaranties, warranties and agreements set forth in Exhibit B-2 hereof
(the “Warranties”).

     

    3.           Governmental
Approvals and Certificates.  Assignor hereby assigns,
transfers, conveys and sets over unto Assignee any and all of Assignor’s right,
title and interest, if any, in and under any zoning, construction, development,
use, occupancy and operating permits relating to the Property, and all other
permits, approvals and certificates obtained in connection with the Property,
including, but not limited to, the permits, approvals and certificates attached
hereto as Exhibit
C (the “Governmental
Permits”).

    
      
         

      

      
        Page 1 of
8

        
          

        

      

      
         

      

    

     

    4.           Trade
Name.  Assignor hereby transfers, sets over, conveys and
assigns to Assignee any and all of Assignor’s rights, title and interest to
utilize the names: “_____________” in connection with the Property, including
the right to use trade names, logos, service marks and similar design
identification marks in connection with the Property (the “Trade
Names”).  Assignor hereby agrees to discontinue the use of such
trade names, service marks, logo and similar design identification marks, and to
execute any release, relinquishment or transfer thereof that may be required by
law.

     

    OR, for
Western Place, Statesboro Place and Berkeley:  Assignee acknowledges
that Assignor has no right to transfer any interest or right to use
“__________Place”, and Assignee agrees that it will not use the term “Place” in
conjunction with the Premises.

     

    5.           Successors
and Assigns.  This Assignment shall inure to the benefit of,
and be binding upon, the successors, executors, administrators, legal
representatives and assigns of the parties hereto.

     

    6.           Governing
Law.  This Assignment shall be construed under and enforced in
accordance with the laws of the State of ____________, without regard to
conflict of law rules.

     

    7.           Assignee’s
Assumption.  Assignee hereby
assumes all of the obligations of the Assignor, from and after the date hereof,
under and with respect to the Service Contracts, Warranties, Governmental
Permits, and Trade Names which are the subject of this Assignment, the
obligations of which are to be performed after the date
hereof.  Assignee agrees to indemnify Assignor for all such
obligations arising on or after the date hereof and Assignor shall indemnify
Assignee for all such obligations arising prior to the date hereof.

     

    8.           Disclaimer.  This
Assignment is given by Assignor to Assignee in connection with the sale of the
Property by Assignor to the Assignee and no portion of the consideration paid by
Assignee to Assignor for the Property has been separately allocated to the
Service Contracts, Warranties, Governmental Permits or Trade Names assigned
hereunder by Assignor to Assignee.

     

    [THE
BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        Page 2 of
8

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have executed this Assignment as of the date set
forth above.

    

    
      
        
          
            	
                    ASSIGNOR:

                  	 
	 
      	 
	                 	
                    By

                  	
                      

                  	 
	 
      	
                    Name:

                  	 
	 
      	
                    Title:

                  	 

          

        

      

    

    

    
      
        
          
            
              
                
                  	 	
                          ASSIGNEE:

                        	 
	 	 
      	 
	 	
                          _______________________________,
      LLC

                        
	 	 
      	 
      	 
	 	
                          By:

                        	
                             

                        	 
	 	 
      	 
      	 
	 	
                          Name: 

                        	
                            

                        	 
	 	 
      	 
      	 
	 	
                          Title:

                        	
                             

                        	 

                

              

            

          

        

      

    

    
      
         

      

      
        Page 3 of
8

        
          

        

      

      
         

      

    

    
 

    
      
        
          	
                  State
      of

                	
                  )

                	 
      
	
                  County
      of

                	
                  )

                	
                  ss.:

                

        

      

    

    

    On the
______ day of _____________, ______ before me, the undersigned personally
appeared ______________________________, personally known to me or proved to me
on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he/she executed
the same in his/her capacity, and that by his/her signature on the instrument,
the individual, or the person on behalf of which the individual acted, executed
the instrument.

     

    
      
        	 
      	
                  

              
	 
      	
                Notary
      Public

              

      

    

    

    My
Commission Expires:_________________

    

    
      
        	
                State
      of

              	
                )

              	 
      
	
                County
      of

              	
                )

              	
                ss.:

              

      

    

    

    On the
______ day of _________, _______ before me, the undersigned personally appeared
______________________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to
the within instrument and acknowledged to me that he/she executed the same in
his/her capacity, and that by his/her signature on the instrument, the
individual, or the person on behalf of which the individual acted, executed the
instrument.

     

    
      	 
      	
                

            
	 
      	
              Notary
      Public

            

    

    

    My
Commission Expires:_________________

    
      
         

      

      
        Page 4 of
8

        
          

        

      

      
         

      

    

    EXHIBIT
A

    DESCRIPTION OF
PROPERTY

    
      
         

      

      
        Page 5 of
8

        
          

        

      

      
         

      

    

    EXHIBIT
B-1

    SERVICE
CONTRACTS

    
      
         

      

      
        Page 6 of
8

        
          

        

      

      
         

      

    

    EXHIBIT
B-2

    WARRANTIES

    
      
         

      

      
        Page 7 of
8

        
          

        

      

      
         

      

    

    EXHIBIT
C

    GOVERNMENTAL
PERMITS

    
      
         

      

      
        Page 8 of
8

        
          

        

      

      
         

      

    

    EXHIBIT
E

    FORM OF
ASSIGNMENT

     

    ASSIGNMENT

     

    THIS
ASSIGNMENT, is executed as of the ____ day of __________, ________, by and
between ______________________, a ________________________ (hereinafter referred
to as “Assignor”),
and _______________________________, a _________________ (herein
referred to as “Assignee”).

    

    WITNESSETH

    

    WHEREAS,
Assignor has of even date herewith conveyed to Assignee the land, with the
buildings and the improvements located thereon, more particularly described on
Exhibit A
attached hereto and by this reference made a part hereof (herein referred to as
the “Property”);
and

     

    WHEREAS,
in connection with the conveyance of the Property, Assignor and Assignee intend
that Assignor’s rights, title and interest in, to and under any and all service
contracts, construction contracts, guaranties, warranties, certificates,
agreements and other matters stated herein be assigned and transferred to
Assignee.

     

    NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows:

     

    1.           Service
Contracts.  Assignor hereby assigns, conveys, transfers and
sets over to the Assignee any and all of Assignor’s right, title and interest in
and to those certain operating and service contracts and agreements relating to
the Property, including, but not limited to, the operating and service contracts
and agreements listed in Exhibit B-1 hereto
(collectively, the “Service
Contracts”).  Assignor agrees to cancel any other operating and
service contracts and agreements relating to the Property and shall indemnify
and hold Assignee harmless from any claims or losses under such other operating
and service contracts and agreements.

     

    2.           Warranties
and Guaranties.  Assignor hereby assigns, conveys, transfers
and sets over unto Assignee any and all of Assignor’s right, title and interest
in and to all of those assignable guaranties, warranties and agreements from any
contractors, sub-contractors, vendors or suppliers regarding their performance,
quality of workmanship and quality of materials supplied in connection with the
construction, manufacture, development, installation and operation of any and
all fixtures, equipment, items of personal property and improvements located on
or used in connection with the Property, including, but not limited to, those
guaranties, warranties and agreements set forth in Exhibit B-2 hereof
(the “Warranties”).

     

    3.           Governmental
Approvals and Certificates.  Assignor hereby assigns,
transfers, conveys and sets over unto Assignee any and all of Assignor’s right,
title and interest, if any, in and under any zoning, construction, development,
use, occupancy and operating permits relating to the Property, and all other
permits, approvals and certificates obtained in connection with the Property,
including, but not limited to, the permits, approvals and certificates attached
hereto as Exhibit
C (the “Governmental
Permits”).

    
      
         

      

      
        Page 1 of
8

        
          

        

      

      
         

      

    

     

    4.           Trade
Name.  Assignor hereby transfers, sets over, conveys and
assigns to Assignee any and all of Assignor’s rights, title and interest to
utilize the names: “_____________” in connection with the Property, including
the right to use trade names, logos, service marks and similar design
identification marks in connection with the Property (the “Trade
Names”).  Assignor hereby agrees to discontinue the use of such
trade names, service marks, logo and similar design identification marks, and to
execute any release, relinquishment or transfer thereof that may be required by
law.

     

    OR, for
Western Place, Statesboro Place and Berkeley:  Assignee acknowledges
that Assignor has no right to transfer any interest or right to use
“__________Place”, and Assignee agrees that it will not use the term “Place” in
conjunction with the Premises.

     

    5.           Successors
and Assigns.  This Assignment shall inure to the benefit of,
and be binding upon, the successors, executors, administrators, legal
representatives and assigns of the parties hereto.

     

    6.           Governing
Law.  This Assignment shall be construed under and enforced in
accordance with the laws of the State of ____________, without regard to
conflict of law rules.

     

    7.           Assignee’s
Assumption.  Assignee hereby
assumes all of the obligations of the Assignor, from and after the date hereof,
under and with respect to the Service Contracts, Warranties, Governmental
Permits, and Trade Names which are the subject of this Assignment, the
obligations of which are to be performed after the date
hereof.  Assignee agrees to indemnify Assignor for all such
obligations arising on or after the date hereof and Assignor shall indemnify
Assignee for all such obligations arising prior to the date hereof.

     

    8.           Disclaimer.  This
Assignment is given by Assignor to Assignee in connection with the sale of the
Property by Assignor to the Assignee and no portion of the consideration paid by
Assignee to Assignor for the Property has been separately allocated to the
Service Contracts, Warranties, Governmental Permits or Trade Names assigned
hereunder by Assignor to Assignee.

     

    [THE
BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        Page 2 of
8

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have executed this Assignment as of the date set
forth above.

    

    
      
        
          
            	
                    ASSIGNOR:

                  	 
	 
      	 
	                   	
                    By

                  	
                      

                  	 
	 
      	
                    Name:

                  	 
	 
      	
                    Title:

                  	 

          

        

      

    

    

    
      
        	 	
                ASSIGNEE:

              
	 	 
      
	 	
                _______________________________,
      LLC

              
	 	 
      	 
      
	 	
                By:

              	
                   

              
	 	 
      	 
      
	 	
                Name: 

              	
                  

              
	 	 
      	 
      
	 	
                Title:

              	
                   

              

      

    

    
      
         

      

      
        Page 3 of
8

        
          

        

      

      
         

      

    

    
 

    
      
        
          	
                  State
      of

                	
                  )

                	 
      
	
                  County
      of

                	
                  )

                	
                  ss.:

                

        

      

    

    

    On the
______ day of _____________, ______ before me, the undersigned personally
appeared ______________________________, personally known to me or proved to me
on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he/she executed
the same in his/her capacity, and that by his/her signature on the instrument,
the individual, or the person on behalf of which the individual acted, executed
the instrument.

     

    
      
        	 
      	
                  

              
	 
      	
                Notary
      Public

              

      

    

    

    My
Commission Expires:_________________

    

    
      
        	
                State
      of

              	
                )

              	 
      
	
                County
      of

              	
                )

              	
                ss.:

              

      

    

    

    On the
______ day of _________, _______ before me, the undersigned personally appeared
______________________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to
the within instrument and acknowledged to me that he/she executed the same in
his/her capacity, and that by his/her signature on the instrument, the
individual, or the person on behalf of which the individual acted, executed the
instrument.

     

    
      	 
      	
                

            
	 
      	
              Notary
      Public

            

    

    

    My
Commission Expires:_________________

    
      
         

      

      
        Page 4 of
8

        
          

        

      

      
         

      

    

    EXHIBIT
A

    DESCRIPTION OF
PROPERTY

    
      
         

      

      
        Page 5 of
8

        
          

        

      

      
         

      

    

    EXHIBIT
B-1

    SERVICE
CONTRACTS

    
      
         

      

      
        Page 6 of
8

        
          

        

      

      
         

      

    

    EXHIBIT
B-2

    WARRANTIES

    
      
         

      

      
        Page 7 of
8

        
          

        

      

      
         

      

    

    EXHIBIT
C

    GOVERNMENTAL
PERMITS

    
      
         

      

      
        Page 8 of
8

        
          

        

      

      
         

      

    

    EXHIBIT
J

    REAL AND PERSONAL PROPERTY
TAXES

     

    See
Attached

    
      
         

      

      
        Page 1 of
5

        
          

        

      

      
         

      

    

    The
Gables

    1909
Creason Drive

    Bowling
Green, KY 42101

    2010
Property Tax Bill Schedule

    

    
      
        
          
            
              
                
                  
                    
                      	
                              Taxing Authority

                            	 	
                              Parcel

                              Number

                            	 	
                              Tax Type

                            	 	
                              2009

                              Amount Paid

                            	 	 	
                              2010 Forecasted/

                              Accrued Taxes

                            	 	
                              Due Date

                            	 	
                              Paid?

                            
	
                              WARREN
      COUNTY

                            	 	
                              040B-14-007

                            	 	
                              RE

                            	 	 	18,330.64	 	 	 	19,034.76	 	
                              11/1/2010

                            	 	
                              No

                            
	
                              BOWLING
      GREEN CITY

                            	 	
                              040B-14-007

                            	 	
                              RE

                            	 	 	51,283.58	 	 	 	52,320.24	 	
                              12/31/2010

                            	 	
                              No

                            
	 
      	 	 	 	
                              Total
      Real Estate Tax

                            	 	 	69,614.22	 	 	 	71,355.00	 	 
      	 	 
      
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 
      	 	 
      
	
                              WARREN
      COUNTY

                            	 	
                              G0162408

                            	 	
                              PP

                            	 	 	2,025.48	 	 	 	2,066.04	 	
                              11/1/2010

                            	 	
                              No

                            
	
                              BOWLING
      GREEN CITY

                            	 	
                              G0162408

                            	 	
                              PP

                            	 	 	2,721.06	 	 	 	2,775.48	 	
                              12/31/2010

                            	 	
                              No

                            
	 
      	 	 	 	
                              Total
      Personal Property Tax

                            	 	 	4,746.54	 	 	 	4,841.52	 	 
      	 	 
      
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 
      	 	 
      
	 
      	 	 	 	
                              Total
      Taxes

                            	 	 	74,360.76	 	 	 	76,196.52	 	 
      	 	 
      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                  

                                                  	

                                                          *

                                                        	

                                                          We
      have not received the 2010 tax bills for this property.  The
      amounts listed reflect the actual amount paid for the 2009 tax year and
      the estimated due date of the tax bills.

                                                        	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 
      	 	
                                                          City

                                                        	 	 
      	 	 
      
	 	 	
                                                          RE

                                                        	 	 
      	 	
                                                          not
      currently available

                                                        	 	
                                                          2010
      Based on

                                                        
	 	 	
                                                          PP

                                                        	 	 
      	 	
                                                          on the website

                                                        	 	
                                                          Assessor's
      Website

                                                        
	 	 	 
      	 	 
      	 	 
      	 	 
      
	 	 	 
      	 	
                                                          County

                                                        	 	 
      	 	 
      
	 	 	
                                                          RE

                                                        	 	 
      	 	
                                                          not
      currently available

                                                        	 	
                                                          2010
      Estimate Based

                                                        
	 	 	
                                                          PP

                                                        	 	 
      	 	
                                                          on the website

                                                        	 	
                                                          Assessor's
      Website

                                                        

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        Page 2 of
5

        
          

        

      

      
         

      

    

    The
Pointe at Southern

    1699
Statesboro Place Circle

    Statesboro,
GA 30117

    2010
Property Tax Bill Schedule

    

    
      
        
          
            
              
                
                  
                    
                      	
                              Taxing Authority

                            	 	
                              Parcel

                              Number

                            	 	
                              Tax Type

                            	 	
                              2009

                              Amount Paid

                            	 	 	
                              2010 Forecasted/

                              Accrued Taxes

                            	 	
                              Due Date

                            	 	
                              Paid?

                            
	
                              BULLOCH
      COUNTY

                            	 	
                              R574521005

                            	 	
                              RE

                            	 	 	81,874.08	 	 	 	109,906.68	 	
                              12/1/2010

                            	 	
                              No

                            
	
                              BULLOCH
      COUNTY

                            	 	
                              R574520005

                            	 	
                              RE

                            	 	 	53.53	 	 	 	 	 	
                              12/1/2010

                            	 	
                              No

                            
	
                              STATESBORO
      CITY

                            	 	
                              R574521005

                            	 	
                              RE

                            	 	 	25,281.95	 	 	 	 	 	
                              12/20/2010

                            	 	
                              No

                            
	
                              STATESBORO
      CITY

                            	 	
                              R574520005

                            	 	
                              RE

                            	 	 	16.53	 	 	 	 	 	
                              12/20/2010

                            	 	
                              No

                            
	 
      	 	 	 	
                              Total
      Real Estate Tax

                            	 	 	107,226.09	 	 	 	109,906.68	 	 
      	 	 
      
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 
      	 	 
      
	
                              BULLOCH
      COUNTY

                            	 	
                              38550P

                            	 	
                              PP

                            	 	 	1,949.96	 	 	 	2,603.16	 	
                              12/1/2010

                            	 	
                              No

                            
	
                              STATESBORO
      CITY

                            	 	
                              38550P

                            	 	
                              PP

                            	 	 	602.13	 	 	 	 	 	
                              12/20/2010

                            	 	
                              No

                            
	 
      	 	 	 	
                              Total
      Personal Property Tax

                            	 	 	2,552.09	 	 	 	2,603.16	 	 
      	 	 
      
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 
      	 	 
      
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 
      	 	 
      
	 
      	 	 	 	
                              Total
      2009 Taxes

                            	 	 	109,778.18	 	 	 	112,509.84	*	
                               

                            	 	 
      

                    

                  

                

              

            

          

        

      

    

     

    
      
        	

                *

              	

                

                  We
      have not received the 2010 tax bills for this property.  The
      amounts listed reflect the actual amount paid for the 2009 tax year and
      the estimated due date of the tax bills.

                

              	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 
      	 	
                City

              	 	 
      	 	 
      
	 	 	
                RE

              	 	 
      	 	
                

                  25,298.48

                

              	 	
                2010
      Based on

              
	 	 	
                PP

              	 	 
      	 	
                

                  NA

                

              	 	
                Assessor's
      Website

              
	 	 	 
      	 	 
      	 	 
      	 	 
      
	 	 	 
      	 	
                County

              	 	 
      	 	 
      
	 	 	
                RE

              	 	 
      	 	
                

                  81,890.61

                

              	 	
                2010
      Estimate Based

              
	 	 	
                PP

              	 	 
      	 	
                

                   NA

                

              	 	
                Assessor's
      Website

              

      

    
 

    
      
         

      

      
        Page 3 of
5

        
          

        

      

      
         

      

    

    Berkeley
Place

    700
Berkeley Place Circle

    Clemson,
SC 29631

    2010
Property Tax Bill Schedule

    

    
      
        
          
            
              
                
                  	
                          Taxing Authority

                        	 	
                          Parcel Number

                        	 	
                          Tax Type

                        	 	
                          2009

                          Amount Paid

                        	 	 	
                          2010 Forecasted/

                          Accrued Taxes

                        	 	
                          Due Date

                        	 	
                          Paid?

                        
	
                          PICKENS
      COUNTY

                        	 	
                          4054-12-85-3815

                        	 	
                          PP

                        	 	 	8,026.08	 	 	 	8,186.64	 	
                          1/15/2011

                        	 	
                          No

                        
	
                          PICKENS
      COUNTY

                        	 	
                          4054-12-85-3815

                        	 	
                          RE

                        	 	 	142,762.88	 	 	 	147,045.72	 	
                          1/15/2011

                        	 	
                          No

                        
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 
      	 	 
      
	 
      	 	 	 	
                          Total
      2009 Taxes

                        	 	 	150,788.96	 	 	 	155,232.36	 	 
      	 	 
      

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                	
                        

                          *

                        

                      	
                        We
      have not received the 2010 tax bills for this property.  The
      amounts listed reflect the actual amount paid for the 2009 tax year and
      the estimated due date of the tax bills.

                      	 

              

               

            

          

        

      

    

    
      
        
          
            	
                    RE

                  	 	
                    149,044.56

                  	 	
                    2010
      Estimate Based

                  
	
                    PP

                  	 	
                     NA

                  	 	
                    Assessor's
      Website

                  

          

        

      

    

    
      
         

      

      
        Page 4 of
5

        
          

        

      

      
         

      

    

    Western
Place

    720
Patton Way

    Bowling
Green, KY 42104

    2010
Property Tax Bill Schedule

     

    
      
        
          	
                  Taxing Authority

                	 	
                  Parcel

                  Number

                	 	
                  Tax Type

                	 	
                  2009

                  Amount Paid

                	 	 	
                  2010 Forecasted/

                  Accrued Taxes

                	 	
                  Due Date

                	 	
                  Paid?

                
	
                  

                    WARREN
      COUNTY

                  

                	 	
                  

                    W3010509-01

                  

                	 	
                  RE

                	 	 	

                  42,085.12

                	 	 	 	

                  56,016.96

                	 	
                  

                    11/1/2010

                  

                	 	
                  No

                
	
                  

                    BOWLING
      GREEN CITY

                  

                	 	
                  

                    041D-01B-000

                  

                	 	
                  RE

                	 	 	

                  12,566.00

                	 	 	 	 	 	
                  

                    12/31/2010

                  

                	 	
                  No

                
	 
      	 	 	 	
                  Total
      Real Estate Tax

                	 	 	

                  54,651.12

                	 	 	 	

                  56,016.96

                	 	 
      	 	 
      
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 
      	 	 
      
	
                  

                    WARREN
      COUNTY

                  

                	 	
                  

                    W3010456

                  

                	 	
                  PP

                	 	 	

                  5,218.32

                	 	 	 	

                  6,589.80

                	 	
                  

                    11/1/2010

                  

                	 	
                  No

                
	
                  

                    BOWLING
      GREEN CITY

                  

                	 	
                  

                    W3010456

                  

                	 	
                  PP

                	 	 	

                  1,242.22

                	 	 	 	 	 	
                  

                    12/31/2010

                  

                	 	
                  No

                
	 
      	 	 	 	
                  Total
      Personal Property Tax

                	 	 	

                  6,460.54

                	 	 	 	

                  6,589.80

                	 	 
      	 	 
      
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 
      	 	 
      
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 
      	 	 
      
	 
      	 	 	 	
                  Total
      2009 Taxes

                	 	 	

                  61,111.66

                	 	 	 	

                  62,606.76

                	 	
                   

                	 	 
      

        

      

    

     

    
      	

              *

            	

              

                We
      have not received the 2010 tax bills for this property.  The
      amounts listed reflect the actual amount paid for the 2009 tax year and
      the estimated due date of the tax bills.

              

            	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 
      	 	
              City

            	 	 
      	 	 
      
	 	 	
              RE

            	 	 
      	 	
              not
      currently available

            	 	
              2010
      Based on

            
	 	 	
              PP

            	 	 
      	 	
              on the website

            	 	
              Assessor's
      Website

            
	 	 	 
      	 	 
      	 	 
      	 	 
      
	 	 	 
      	 	
              County

            	 	 
      	 	 
      
	 	 	
              RE

            	 	 
      	 	
              not
      currently available

            	 	
              2010
      Estimate Based

            
	 	 	
              PP

            	 	 
      	 	
              on the website

            	 	
              Assessor's
      Website

            

    

    
      
         

      

      
        Page 5 of
5

        
          

        

      

      
         

      

    

    

    EXHIBIT
J

    REAL AND PERSONAL PROPERTY
TAXES

    

    See
Attached

     

    
      
        
           

        

        
          Page 1 of
5

          
            

          

        

        
           

        

      

    

     

    The
Reserve at Jacksonville

    331
Nisbet Street NW #50

    Jacksonville,
AL 36265

    2010
Property Tax Bill Schedule

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            	
                                                                    Taxing Authority

                                                                  	 	
                                                                    Parcel Number

                                                                  	 	
                                                                    Tax Type

                                                                  	 	
                                                                    2009

                                                                    Amount Paid

                                                                  	 
      	
                                                                    2010 Forecasted/

                                                                    Accrued Taxes

                                                                  	 	
                                                                    Due Date

                                                                  	 	
                                                                    Paid?

                                                                  
	
                                                                    CALHOUN

                                                                    COUNTY

                                                                  	 	
                                                                    12-01-11-2-001-

                                                                    003.005

                                                                  	 	
                                                                    RE

                                                                  	 	
                                                                    118,188.55

                                                                  	 
      	
                                                                    121,479.96

                                                                  	 	
                                                                    12/31/2010

                                                                  	 	
                                                                    No

                                                                  
	
                                                                    CALHOUN

                                                                    COUNTY

                                                                  	 	
                                                                    12-01-11-1-001-

                                                                    012.001

                                                                  	 	
                                                                    RE

                                                                  	 	
                                                                    328.70

                                                                  	 
      	 
      	 	
                                                                    12/31/2010

                                                                  	 	
                                                                    No

                                                                  
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 
      	 	
                                                                    Total
      Real Estate Tax

                                                                  	 	
                                                                    118,517.25

                                                                  	 
      	
                                                                    121,479.96

                                                                  	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	
                                                                    CALHOUN

                                                                    COUNTY

                                                                  	 	
                                                                    90-02-53-0-000-

                                                                    206.011

                                                                  	 	
                                                                    PP

                                                                  	 	
                                                                    2,987.75

                                                                  	 
      	
                                                                    3,047.52

                                                                  	 	
                                                                    12/31/2010

                                                                  	 	
                                                                    No

                                                                  
	 
      	 	 
      	 	
                                                                    Total
      Personal Property Tax

                                                                  	 	
                                                                    2,987.75

                                                                  	 
      	
                                                                    3,047.52

                                                                  	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                    Total
      Taxes*

                                                                  	 	
                                                                    121,505.00

                                                                  	 
      	
                                                                    124,527.48

                                                                  	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	
                                                                    *

                                                                  	 	
                                                                    We
      have not received the 2010 tax bills for this property.

                                                                  	 	 
      	 	 
      
	 
      	 	
                                                                    The
      amounts listed reflect the actual amount paid for the 2009

                                                                  	 	 
      	 	 
      
	 
      	 	
                                                                    tax
      year and the estimated due date of the tax bills.

                                                                  	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	
                                                                    .005
      - RE

                                                                  	 
      	
                                                                    105,014.90

                                                                  	 	
                                                                    2010
      Based on

                                                                  
	 
      	 	 
      	 	 
      	 	
                                                                    .001
      - RE

                                                                  	 
      	
                                                                    341.05

                                                                  	 	
                                                                    Assessor's
      Website

                                                                  

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
           

        

        
          Page 2 of
5

          
            

          

        

        
           

        

      

    

     

    The
Chase at Murray

    1700
Lowes Drive

    Murray,
KY 42071

    2010
Property Tax Bill Schedule

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            	
                                                                                    Taxing Authority

                                                                                  	 	
                                                                                    Parcel

                                                                                    Number

                                                                                  	 	
                                                                                    Tax Type

                                                                                  	 	
                                                                                    2009

                                                                                    Amount

                                                                                    Paid

                                                                                  	 
      	
                                                                                    2010 Forecasted/

                                                                                    Accrued Taxes

                                                                                  	 	
                                                                                    Due Date

                                                                                  	 	
                                                                                    Paid?

                                                                                  
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                    CITY
      OF MURRAY

                                                                                  	 	
                                                                                    04100129F

                                                                                  	 	
                                                                                    RE

                                                                                  	 	
                                                                                    25,135.50

                                                                                  	 
      	
                                                                                    72,276.60

                                                                                  	 	
                                                                                    10/31/2010

                                                                                  	 	
                                                                                    No

                                                                                  
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                    CALLOWAY
      COUNTY

                                                                                  	 	
                                                                                    04100129F

                                                                                  	 	
                                                                                    RE

                                                                                  	 	
                                                                                    45,035.90

                                                                                  	 
      	 
      	 	
                                                                                    11/30/2010

                                                                                  	 	
                                                                                    No

                                                                                  
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 
      	 	
                                                                                    Total
      Real Estate Tax

                                                                                  	 	
                                                                                    70,171.40

                                                                                  	 
      	
                                                                                    72,276.60

                                                                                  	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	
                                                                                    CITY
      OF MURRAY

                                                                                  	 	
                                                                                    126143501

                                                                                  	 	
                                                                                    PP

                                                                                  	 	
                                                                                    2,216.58

                                                                                  	 
      	
                                                                                    8,225.16

                                                                                  	 	
                                                                                    10/31/2010

                                                                                  	 	
                                                                                    No

                                                                                  
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                    CALLOWAY
      COUNTY

                                                                                  	 	
                                                                                    126143501

                                                                                  	 	
                                                                                    PP

                                                                                  	 	
                                                                                    5,847.35

                                                                                  	 
      	 
      	 	
                                                                                    11/30/2010

                                                                                  	 	
                                                                                    No

                                                                                  
	 
      	 	 
      	 	
                                                                                    Total
      Personal Property Tax

                                                                                  	 	
                                                                                    8,063.93

                                                                                  	 
      	
                                                                                    8,225.16

                                                                                  	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                                    Total
      Taxes

                                                                                  	 	
                                                                                    78,235.33

                                                                                  	 
      	
                                                                                    80,501.76

                                                                                  	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	
                                                                                    *

                                                                                  	 	
                                                                                    We
      have not received the 2010 tax bills for this property.

                                                                                  	 	 
      	 	 
      
	 
      	 	
                                                                                    The
      amounts listed reflect the actual amount paid for the 2009

                                                                                  	 	 
      
	 
      	 	
                                                                                    tax
      year and the estimated due date of the tax bills.

                                                                                  	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 	
                                                                                    City

                                                                                  	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	
                                                                                    RE

                                                                                  	 
      	
                                                                                    not
      currently

                                                                                    available

                                                                                  	 	
                                                                                    2010
      Based on

                                                                                  
	 
      	 	 
      	 	 
      	 	
                                                                                    PP

                                                                                  	 
      	
                                                                                    on
      the website

                                                                                  	 	
                                                                                    Assessor's
      Website

                                                                                  
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 	
                                                                                    County

                                                                                  	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	
                                                                                    RE

                                                                                  	 
      	
                                                                                    71,091.00

                                                                                  	 	
                                                                                    2010
      Estimate Based

                                                                                  
	 
      	 	 
      	 	 
      	 	
                                                                                    PP

                                                                                  	 
      	 
      	 	
                                                                                    on
      MFP Assessment
Letter

                                                                                  

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
           

        

        
          Page 3 of
5

          
            

          

        

        
           

        

      

    

     

    Clemson Place

    133
Clemson Place Circle

    Clemson,
SC 29631

    2010
Property Tax Bill Schedule

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      Taxing Authority

                                                    	 	
                                                      Parcel Number

                                                    	 	
                                                      Tax Type

                                                    	 	
                                                      2009

                                                      Amount

                                                      Paid

                                                    	 
      	
                                                      2010

                                                      Forecasted/

                                                      Accrued

                                                      Taxes

                                                    	 	
                                                      Due Date

                                                    	 	
                                                      Paid?

                                                    
	
                                                      PICKENS

                                                      COUNTY

                                                    	 	
                                                      4044-11-66-

                                                      9178P

                                                    	 	
                                                      PP

                                                    	 	
                                                      8,709.77

                                                    	 
      	
                                                      8,883.96

                                                    	 	
                                                      1/15/2011

                                                    	 	
                                                      No

                                                    
	
                                                      PICKENS

                                                      COUNTY

                                                    	 	
                                                      4044-11-66-

                                                      9178

                                                    	 	
                                                      RE

                                                    	 	
                                                      127,419.42

                                                    	 
      	
                                                      131,241.96

                                                    	 	
                                                      1/15/2011

                                                    	 	
                                                      No

                                                    
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                      Total
      Taxes*

                                                    	 	
                                                      136,129.19

                                                    	 
      	
                                                      140,125.92

                                                    	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	
                                                      *

                                                    	 	
                                                      We
      have not received the 2010 tax bills for this property.

                                                    	 	 
      	 	 
      
	 
      	 	
                                                      The
      amounts listed reflect the actual amount paid for the 2009

                                                    	 	 
      
	 
      	 	
                                                      tax
      year and the estimated due date of the tax bills.

                                                    	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	
                                                      PP

                                                    	 
      	
                                                      NA

                                                    	 	
                                                      2010
      Based on

                                                    
	 
      	 	 
      	 	 
      	 	
                                                      RE

                                                    	 
      	
                                                      146,529.21

                                                    	 	
                                                      Assessor's
      Website

                                                    

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
           

        

        
          Page 4 of
5

          
            

          

        

        
           

        

      

    

     

    The Reserve at Martin

    237
West Peach Street

    Martin,
TN 38237

    2010
Property Tax Bill Schedule

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          	
                                                                                  Taxing Authority

                                                                                	 	
                                                                                  Parcel Number

                                                                                	 	
                                                                                  Tax Type

                                                                                	 	
                                                                                  2009

                                                                                  Amount

                                                                                  Paid

                                                                                	 
      	
                                                                                  2010 Forecasted/

                                                                                  Accrued Taxes

                                                                                	 	
                                                                                  Due Date

                                                                                	 	
                                                                                  Paid?

                                                                                
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                  MARTIN
      CITY

                                                                                	 	
                                                                                  078D
      A 00800 000

                                                                                	 	
                                                                                  RE

                                                                                	 	
                                                                                  54,346.00

                                                                                	 
      	
                                                                                  133,445.76

                                                                                	 	
                                                                                  2/28/2011

                                                                                	 	
                                                                                  No

                                                                                
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                                  WEAKLEY
      COUNTY

                                                                                	 	
                                                                                  078D
      A 00800 000

                                                                                	 	
                                                                                  RE

                                                                                	 	
                                                                                  75,845.00

                                                                                	 
      	 
      	 	
                                                                                  2/28/2011

                                                                                	 	
                                                                                  No

                                                                                
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 
      	 	
                                                                                  Total
      Real Estate Tax

                                                                                	 	
                                                                                  130,191.00

                                                                                	 
      	
                                                                                  133,445.76

                                                                                	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	
                                                                                  MARTIN
      CITY

                                                                                	 	
                                                                                  078D
      A 00800 P 000

                                                                                	 	
                                                                                  PP

                                                                                	 	
                                                                                  699.00

                                                                                	 
      	
                                                                                  1,339.32

                                                                                	 	
                                                                                  2/28/2011

                                                                                	 	
                                                                                  No

                                                                                
	
                                                                                  WEAKLEY

                                                                                  COUNTY

                                                                                	 	 
      	 	
                                                                                  PP

                                                                                	 	
                                                                                  976.00

                                                                                	 
      	 
      	 	
                                                                                  2/28/2011

                                                                                	 	
                                                                                  No

                                                                                
	 
      	 	 
      	 	
                                                                                  Total
      Personal Property Tax

                                                                                	 	
                                                                                  1,675.00

                                                                                	 
      	
                                                                                  1,339.32

                                                                                	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                                  Total
      2009 Taxes

                                                                                	 	
                                                                                  131,866.00

                                                                                	 
      	
                                                                                  134,785.08

                                                                                	 	
                                                                                  *

                                                                                	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	
                                                                                  *

                                                                                	 	
                                                                                  We
      have not received the 2010 tax bills for this property.

                                                                                	 	 
      	 	 
      
	 
      	 	
                                                                                  The
      amounts listed reflect the actual amount paid for the 2009

                                                                                	 	 
      	 	 
      
	 
      	 	
                                                                                  tax
      year and the estimated due date of the tax bills.

                                                                                	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 	
                                                                                  City

                                                                                	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	
                                                                                  RE

                                                                                	 
      	
                                                                                  not
      currently

                                                                                  available

                                                                                	 	
                                                                                  2010
      Based on

                                                                                
	 
      	 	 
      	 	 
      	 	
                                                                                  PP

                                                                                	 
      	
                                                                                  on
      the website

                                                                                	 	
                                                                                  Assessor's
      Website

                                                                                
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 	
                                                                                  County

                                                                                	 
      	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	
                                                                                  RE

                                                                                	 
      	
                                                                                  76,017.00

                                                                                	 	
                                                                                  2010
      Estimate Based

                                                                                
	 
      	 	 
      	 	 
      	 	
                                                                                  PP

                                                                                	 
      	
                                                                                  1,072.00

                                                                                	 	
                                                                                  on
      MFP Assessment Letter

                                                                                
	 
      	 	 
      	 	 
      	 	 
      	 
      	 
      	 	 
      	 	 
      

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
           

        

        
          Page 5 of
5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00180-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00180-of-00352.parquet"}]]