Document:

Exhibit 10.1

 Exhibit 10.1 
  
 AGREEMENT OF SALE AND PURCHASE 
 between 
  
 ASP WASHINGTON, L.L.C.,

 a Delaware limited liability company, 
  
 and 
  
 ASP WASHINGTON DEVELOPMENT, L.L.C., 
 a Delaware limited liability company, 

 
 collectively, 
 “Seller” 
  
 and 
 COHEN COMPANIES, LLC 
  
 a Maryland limited liability company 
 “Buyer” 
  
 with Escrow Instructions for

 New Enterprise Title Group, Inc. 

 Table of Contents 
  

					
	 	  	 	  	Page

	 ARTICLE 1 - C ERTAIN DEFINITIONS
	  	1
			
	     Section 1.1
	  	 Definitions
	  	1
	     Section 1.2
	  	 Rules of Construction
	  	7
		
	 ARTICLE 2 - AGREEMENT OF PURCHASE AND SALE; PURCHASE PRICE
	  	7
			
	     Section 2.1
	  	 Agreement of Purchase and Sale
	  	7
	     Section 2.2
	  	 Purchase Price
	  	7
	     Section 2.3
	  	 Deposit
	  	7
	     Section 2.4
	  	 Independent Consideration
	  	7
	     Section 2.5
	  	 Indivisible Economic Package
	  	8
	     Section 2.6
	  	 Assumption of Obligations
	  	8
		
	 ARTICLE 3 - BUYER'S DUE DILIGENCE/CONDITION OF THE PROPERTY
	  	8
			
	     Section 3.1
	  	 Buyer's Inspections and Due Diligence
	  	8
	     Section 3.2
	  	 Due Diligence Items; Delivery Period.
	  	8
	     Section 3.3
	  	 Site Visits
	  	9
	     Section 3.4
	  	 Due Diligence Indemnity
	  	10
	     Section 3.5
	  	 Confidentiality
	  	10
	     Section 3.6
	  	 Due Diligence Period
	  	11
	     Section 3.7
	  	 Estoppel Certificates.
	  	11
	     Section 3.8
	  	 SNDA's
	  	12
		
	 ARTICLE 4 - TITLE AND SURVEY
	  	12
			
	     Section 4.1
	  	 Title to Real Property
	  	12
	     Section 4.2
	  	 Certain Exceptions to Title
	  	12
	     Section 4.3
	  	 Title Insurance
	  	13
		
	 ARTICLE 5 - REMEDIES AND DEPOSIT INSTRUCTIONS
	  	13
			
	     Section 5.1
	  	 Permitted Termination; Seller Default
	  	13
	     Section 5.2
	  	 Buyer Default; Liquidated Damages
	  	14
	     Section 5.3
	  	 Deposit Instructions
	  	14
	     Section 5.4
	  	 Designation of Reporting Person
	  	15
		
	 ARTICLE 6 - REPRESENTATIONS AND WARRANTIES OF SELLER
	  	16
			
	     Section 6.1
	  	 Representations and Warranties of Development
	  	16
	     Section 6.2
	  	 Representations and Warranties of Washington
	  	17
	     Section 6.3
	  	 Limited Liability
	  	18
	     Section 6.4
	  	 Knowledge
	  	19
	     Section 6.5
	  	 Liability of Representations and Warranties
	  	19
		
	 ARTICLE 7 - REPRESENTATIONS AND WARRANTIES OF BUYER
	  	19
			
	     Section 7.1
	  	 Buyer's Representations and Warranties
	  	19
	     Section 7.2
	  	 Buyer's Independent Investigation.
	  	20
	     Section 7.3
	  	 Buyer's Release of Seller
	  	22
	     Section 7.4
	  	 Discharge
	  	23

  

 (i) 

					
	 ARTICLE 8 - LEASES; MAINTENANCE OF PROPERTY
	  	23
			
	     Section 8.1
	  	 New Leases; Lease Modifications.
	  	23
	     Section 8.2
	  	 Lease Expenses
	  	24
	     Section 8.3
	  	 Lease Enforcement
	  	24
	     Section 8.4
	  	 Certain Interim Operating Covenants
	  	24
		
	 ARTICLE 9 - CLOSING AND CONDITIONS
	  	25
			
	     Section 9.1
	  	 Escrow Instructions
	  	25
	     Section 9.2
	  	 Closing
	  	25
	     Section 9.3
	  	 Seller's Closing Documents and Other Items
	  	26
	     Section 9.4
	  	 Buyer's Closing Documents and Other Items
	  	27
	     Section 9.5
	  	 Prorations and Closing Costs.
	  	27
	     Section 9.6
	  	 Broker
	  	29
	     Section 9.7
	  	 Expenses
	  	30
		
	 ARTICLE 10 - MISCELLANEOUS
	  	30
			
	     Section 10.1
	  	 Amendment and Modification
	  	30
	     Section 10.2
	  	 Risk of Loss and Insurance Proceeds.
	  	30
	     Section 10.3
	  	 Notices
	  	31
	     Section 10.4
	  	 Assignment
	  	32
	     Section 10.5
	  	 Governing Law and Consent to Jurisdiction
	  	32
	     Section 10.6
	  	 Counterparts
	  	33
	     Section 10.7
	  	 Entire Agreement
	  	33
	     Section 10.8
	  	 Severability
	  	33
	     Section 10.9
	  	 Attorney Fees
	  	33
	     Section 10.10
	  	 Payment of Fees and Expenses
	  	33
	     Section 10.11
	  	 Confidential Information
	  	33
	     Section 10.12
	  	 No Joint Venture
	  	34
	     Section 10.13
	  	 Waiver of Jury Trial
	  	34
	     Section 10.14
	  	 Limited Liability
	  	34
	     Section 10.15
	  	 Time of Essence
	  	34
	     Section 10.16
	  	 No Waiver
	  	34

  
  

 (ii) 

 AGREEMENT OF SALE AND PURCHASE 
  
 THIS AGREEMENT OF SALE AND PURCHASE (this “Agreement”), dated as of May
        , 2001, is between ASP WASHINGTON DEVELOPMENT, L.L.C., a Delaware limited liability company (“Development”), and ASP WASHINGTON, L.L.C., a Delaware limited liability company
(“Washington;” Development and Washington are sometimes hereinafter referred to collectively as “Seller”), and THE COHEN COMPANIES, LLC, a Maryland limited liability company or its permitted assigns (“Buyer”)

  
 ARTICLE 1 - CERTAIN DEFINITIONS 
  
 Section 1.1 Definitions. The parties hereby agree that the following terms
shall have the meanings hereinafter set forth, such definitions to be applicable equally to the singular and plural forms, and to the masculine and feminine forms, of such terms: 
  
 1.1.1 “Additional Deposit” shall have the meaning ascribed in Section 2.3. 
  
 1.1.2 “Affiliate” shall mean with respect to Seller, any person or
entity that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with Seller, or with respect to Buyer, any entity established for estate planning purposes that is directly, or indirectly
through one or more intermediaries, controlled by Ronald Cohen. For the purposes of this definition, “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a
person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have the meanings correlative to the foregoing. 
  
 1.1.3 “Assignment and Assumption of Contracts” shall have the
meaning ascribed in Section 9.34. 
  
 1.1.4 “Assignment and
Assumption of Leases” shall have the meaning ascribed in Section 9.3.3. 
  
 1.1.5 “Bill of Sale’ shall have the meaning ascribed in Section 9.3.2. 
  
 1.1.6 “Broker” shall mean Trammell Crow Company. 
  
 1.1.7 “Broker’s Commission” shall have the meaning ascribed in Section 9.6. 
  
 1.1.8 “Closing” shall have the meaning ascribed in Section 9.2. 
  
 1.1.9 “Closing Date” shall mean the date set forth in Section 9.2.

  
 1.1.10 “Closing Statement” shall have the meaning
ascribed in Section 9.5.1(a). 
  
 1.1.11 “Code” shall
have the meaning ascribed in Section 5.4. 
  
 1.1.12
“Commissions” shall mean all commissions, referral fees, payments and obligations of Seller or the Property Manager to make payments to leasing agents, leasing brokers or other parties with respect to the leasing of all or any of the
Property, whether such agreements are contained in a Lease or in any separate Commission Agreement. 

 1.1.13 “Commission Agreements” shall mean all written agreements and documents entered into by
Seller or the Property Manager to pay Commissions that are not contained in a Lease, together with all amendments thereto or modifications thereof. 
  
 1.1.14 “Contracts” shall mean the service contracts and other contracts described in Exhibit C and all other service contracts entered into by
Seller after the Effective Date with respect to the Property in accordance with Section 8.4. 
  
 1.1.15 “Deed” shall have the meaning ascribed in Section 9.3.1. 
  
 1.1.16 “Deposit” shall have the meaning ascribed in Section 2.3. 
  
 1.1.17 “Development Land” shall mean those certain parcels of land in Washington Business Park, Lanham, Maryland,
consisting of approximately seventy-nine (79) acres, and all appurtenances thereto, as more particularly described on Exhibit A-2, including Development’s right, title and interest, if any, in and to all rights-of-way, open or proposed streets
(public or private), alleys, easements, strips or gores of land adjacent thereto. 
  
 1.1.18 “Disclosure Items” shall have the meaning ascribed in Section 6.1. 
  
 1.1.19 “Due Diligence” shall have the meaning ascribed in Section 3.1. 
  
 1.1.20 “Due Diligence Items” shall have the meaning ascribed in Section 3.2. 
  
 1.1.21 “Due Diligence Period” shall mean the time period provided
for in Section 3.1 of this Agreement. 
  
 1.1.22 “Effective
Date” shall mean the date this Agreement shall have been fully executed and delivered by all parties hereto. 
  
 1.1.23 “Environmental Laws” means all federal, state and local environmental laws, rules, statutes, directives, binding written interpretations,
binding written policies, ordinances and regulations issued by any Governmental Entity and in effect as of the date of this Agreement with respect to or which otherwise pertain to or affect the Real Property or the Improvements, or any portion
thereof, the use, ownership, occupancy or operation of the Real Property or the Improvements, or any portion thereof, or any owner of the Real Property, and as same have been amended, modified or supplemented from time to time prior to the date of
this Agreement, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et seq.), the Hazardous Substances Transportation Act (49 U.S.C. § 1802 et seq.), the Resource
Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Water Pollution Control Act (3.3 U.S.C. § 1251 et seq.), the Safe Drinking Water Act (42 U.S.C. § 300f et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the
Solid Waste Disposal Act (42 U.S.C. § 6901 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Emergency Planning and Community Right-to-Know Act of 1986 (42 U.S.C. § 11001 et seq. ), the Radon and Indoor Air
Quality Research Act (42 U.S.C. § 7401 note, 
  

 - 2 - 

 et seq.), the Superfund Amendment Reauthorization Act of 1986 (42 U.S.C. § 9601 et seq.), comparable state and local
laws, and any and all rules and regulations which have become effective prior to the date of this Agreement under any and all of tine aforementioned laws. 
  
 1.1.24 “Escrow Agent” shall mean New Enterprise Title Group, Inc. or in the event of an occurrence as described in Section 4.2, First American
Title Insurance Company. 
  
 1.1.25 “Estoppel Period”
shall have the meaning ascribed in Section 3.7(a). 
  
 1.1.26
“Excluded Property Records” shall have the meaning ascribed in Section 3.2. 
  
 1.1.27 “Fixtures” shall mean the fixtures which are located at and affixed to any of the Improvements as of the Closing Date, but specifically excluding any trade fixtures of the Tenants under the Leases.

  
 1.1.28 “Governmental Entity” means the various
governmental and quasi- governmental bodies or agencies having jurisdiction over Seller, the Real Property or any portion thereof. 
  
 1.1.29 “Hazardous Materials” means any pollutants, contaminants, hazardous or toxic substances, materials or wastes (including petroleum,
petroleum by-products, radon, asbestos and asbestos containing materials, polychlorinated biphenyls (“PCBs”), PCB-containing equipment, radioactive elements, infectious agents, and urea formaldehyde), as such terms are used in any
Environmental Laws (excluding solvents, cleaning fluids and other lawful substances used in the ordinary operation and maintenance of the Real Property, to the extent in closed containers). 
  
 1.1.30 “Improvements” shall mean the buildings, improvements, and
structures located on the Washington Land, including, but not limited to, two (2) office buildings and seven (7) flex buildings. 
  
 1.1.31 “Independent Consideration” shall have the meaning ascribed in Section 2.4. 
  
 1.1.32 “Initial Deposit” shall have the meaning ascribed in Section 2.3. 
  
 1.1.33 “Leases” shall mean all unexpired leases, subleases,
occupancy agreements, and any other agreements, including all modifications or amendments thereto, for the use, possession, or occupancy of any portion of the Real Property as of the Closing Date, including any tenant guaranties delivered in
connection with any of the foregoing. 
  
 1.1.34 “Leasing
Parameters” shall have the meaning ascribed in Section 8.1.2. 
  
 1.1.35 “Licensee Parties” shall mean those authorized agents, contractors, consultants and representatives of Buyer who shall inspect, investigate, test or evaluate the Property on behalf of Buyer in accordance with this
Agreement. 
  

 - 3 - 

 1.1.36 “Licenses and Permits” shall mean, collectively, to the extent assignable, all licenses,
permits, approvals, certificates of occupancy, dedications, subdivision maps and entitlements now or hereafter issued, approved or granted by any Governmental Entity in connection with the Real Property, together with all renewals and modifications
thereof. 
  
 1.1.37 “Liens” shall have the meaning
ascribed in Section 4.2. 
  
 1.1.38 “New Leases” or
“New Lease” shall mean, collectively, or singularly, any Lease for space at the Property entered into between the Effective Date and the Closing Date. 
  

1.1.39 “Operating Expenses” shall have the meaning ascribed in Section 9.5.1(c). 
  
 1.1.40 “Permitted Exceptions” shall mean and include all of the
following: (a) applicable zoning and building ordinances and land use regulations; (b) those matters revealed by the Survey (as the same may be updated by Buyer prior to the Closing Date); (c) the lien of taxes and assessments not yet due and
payable (it being agreed by Buyer and Seller that if any tax or assessment is levied or assessed with respect to the Property after the date hereof and the owner of the Property has the election to pay such tax or assessment either immediately or
under a payment plan with interest, Seller may elect to pay under a payment plan, which election shall be binding on Buyer); (d) any exclusions from coverage set forth in the jacket of any Owner’s Policy of Title Insurance or any standard
printed exceptions; (e) any exceptions caused by Buyer, its agents, representatives or employees; (f) such other exceptions as the Title Company shall commit to insure over, without any additional cost to Buyer, whether such insurance is made
available in consideration of payment, bonding, indemnity by Seller or otherwise; (g) the rights of the Tenants under the Leases; and (h) any matters deemed to constitute Permitted Exceptions under Section 4 2 hereof. 
  
 1.1.41 “Permitted Outside Parties” shall have the meaning ascribed
in Section 3.5. 
  
 1.1.42 “Personal Property” shall
mean all of the right, title, and interest of Seller in and to the tangible personal property, which is located at and used in connection with any of the Improvements as of the Closing Date, but specifically excluding (a) any personal property
owned, financed or leased by the Tenants under the Leases, (b) any computer software which either is licensed to Seller, or Seller deems proprietary, (c) any tangible personal property used, whether owned or leased, by any affiliated or unaffiliated
on-site property manager and (d) any warrants, stock options or other equity securities related to the Property Personal Property shall not include any appraisals, budgets, strategic plans for the Real Property, internal analyses, marketing
information, submissions relating to Seller’s obtaining of corporate authorization, attorney and accountant work product, attorney-client privileged documents, or other information in the possession or control of Seller or Seller’s
Property Manager which Seller deems proprietary. 
  
 1.1.43
“Pre-Effective Date Leases” or “Pre-Effective Date Lease” shall mean, collectively, or singularly, any Lease for space at the Property in effect as of the Effective Date. 
  
 1.1.44 “Property” shall mean the Real Property, the Personal
Property, the Leases, the Contracts, and to the extent transferable, all of Seller’s right, title and interest in and 
  

 - 4 - 

 to all tangible and intangible assets of any nature relating to the Property, including without limitation, (a) all
warranties upon the Improvements or the Personal Property, (b) rights to any plans, specifications, engineering studies, reports, drawings, and prints relating to the construction, reconstruction, modification, and alteration of Improvements, (c)
all works of art, graphic designs, and other intellectual or intangible property owned and used by Seller in connection with the Property, including any trade name associated with the Improvements, (d) all claims and causes of action arising out of
or in connection with the Property after the Closing Date, and (e) the Licenses and Permits. 
  
 1.1.45 “Property Manager” shall mean those individuals or entities which manage the Property. 
  
 1.1.46 “Proration Items” shall have the meaning ascribed in Section 9.5.1(a). 
  
 1.1.47 “Proration Time” shall have the meaning ascribed in Section 9.5.1(a). 
  
 1.1.48 “Purchase Price” shall have the meaning ascribed in Section
2.2. 
  
 1.1.49 “Real Property” shall mean the
Development Land, the Washington Land, the improvements, and the Fixtures. 
  
 1.1.50 “Reimbursable Capital Expenses” shall mean costs or expenses for any capital expenditures or improvements made by Seller after the Effective Date hereof but before Closing or as otherwise listed on
Exhibit 4 hereto. 
  
 1.1.51 “Reimbursable Lease
Expenses” shall mean, collectively, any and all fees paid by Seller prior to Closing or costs and expenses paid or incurred by Seller prior to Closing arising out of or in connection with any extensions, renewals or expansions under any Lease
for space at the Property exercised or granted between the Effective Date and the Closing Date, and any New Lease. Reimbursable Lease Expenses shall include, without limitation, (a) brokerage commissions and fees payable pursuant to a Commission
Agreement or a Lease or New Lease to effect any such leasing transaction (including, without limitation, any fees owed to the Property Manager), (b) expenses incurred for repairs, improvements, equipment, painting, decorating, partitioning and other
items to satisfy the tenant’s requirements with regard to such leasing transaction, (c) legal fees for services in connection with the preparation of documents and other services rendered in connection with the effectuation of the leasing
transaction, (d) if there are any rent concessions covering any period that the tenant has the right to be in possession of the demised space, the rents that would have accrued during the period of such concession prior to the Closing Date as if
such concession were amortized over (i) with respect to any extension or renewal, the term of such extension or renewal, (ii) with respect to any expansion, that portion of the term remaining under the subject Lease after the date of any expansion,
or (iii) with respect to any New Lease. the entire initial term of any such New Lease, and (e) expenses incurred for the purpose of satisfying or terminating the obligations of a tenant under a New Lease to the landlord under another lease (whether
or not such other lease covers space in the Property). 
  
 1.1.52
“Rent Roll” shall have the meaning ascribed in Section 3.2(a). 
  

 - 5 - 

 1.1.53 “Rent” or “Rents” shall mean and include fixed monthly rentals, additional
rentals, percentage rentals, escalation rentals (which include each Tenant’s proration share of building operation and maintenance costs and expenses as provided for under the applicable Lease, to the extent the same exceeds any expense stop
specified in such Lease), retroactive rentals, all administrative charges, utility charges, tenant or real property association dues, storage rentals, special event proceeds, temporary rents, telephone receipts, locker rentals, vending machine
receipts and other sums and charges payable by tenants under the Leases or from other occupants or users of the Property, but excluding amounts received for Operating Expenses. 
  
 1.1.54 “Reporting Person” shall have the meaning ascribed in Section 5.4(a). 
  
 1.1.55 “SNDA’s” shall have the meaning ascribed in Section
3.8. 
  
 1.1.56 “Survey” shall mean, collectively, those
certain existing ALTA surveys of the Development Land and the Washington Land and the Improvements more particularly described on Exhibit I attached hereto. 
  
 1.1.57 “Tenant Deposit” means all advance rents and security deposits (whether cash or noncash) paid or deposited by a Tenant to Seller, as
landlord, or any other person on Seller’s behalf pursuant to a Lease (together with any interest which has accrued thereon as required by the terms of such Lease, but only to the extent such interest has accrued for the account of the
respective Tenant or as required by law). 
  
 1.1.58
“Tenant” or “Tenants” shall mean all persons or entities occupying or entitled to possession of any portion of the Real Property pursuant to the Leases, including tenants, subtenants, and licensees. 
  
 1.1.59 “Title Commitment” shall have the meaning ascribed in
Section 4.1. 
  
 1.1.60 “Title Company” shall mean
Stewart Title Guaranty Company, or in the event of an occurrence as described in Section 4.2, First American Title Insurance Company. 
  
 1.1.61 “Title Documents” shall have the meaning ascribed in Section 4.1. 
  
 1.1.62 “Title Objections” shall have the meaning ascribed in Section 4.2. 
  
 1.1.63 “Title Policy” shall have the meaning ascribed in Section
4.3. 
  
 1.1.64 “Washington Land” shall mean those
certain parcels of land in Washington Business Park, Lanham, Maryland, commonly known as (i) 4640 Forbes Boulevard, (ii) 4601 Forbes Boulevard, (iii) 5001 Forbes Boulevard, (iv) 5200 Philadelphia Way, (v) 5000 Philadelphia Way, (vi) 9201
Philadelphia Court (vii) 9901 Business Parkway, (viii) 4819-4881 Walden Lane, and (ix) 4850 Forbes Boulevard, and all appurtenances thereto, as more particularly described on Exhibit A-2, including Development’s right, title and interest, if
any, in and to all rights-of-way, open or proposed streets (public or private), alleys, easements, strips or gores of land adjacent thereto. 
  

 - 6 - 

 Section 1.2 Rules of Construction. Article and Section captions used in this Agreement are for
convenience only and shall not affect the construction of this Agreement. All references to “Article” or “Sections” without reference to a document other than this Agreement, are intended to designate articles and sections of
this Agreement, and the words “herein,” “hereof,” “hereunder,” and other words of similar import refer to this Agreement as a whole and not to any particular Article or Section, unless specifically designated otherwise.
The use of the term “including” shall mean in all cases “including but not limited to,” unless specifically designated otherwise. No rules of construction against the drafter of this Agreement shall apply in any interpretation or
enforcement of this Agreement, any documents or certificates executed pursuant hereto, or any provisions of any of the foregoing. 
  
 ARTICLE 2 - AGREEMENT OF PURCHASE AND SALE; PURCHASE PRICE 
  
 Section 2.1 Agreement of Purchase and Sale. Seller agrees to sell, transfer, assign and convey to Buyer, and Buyer agrees to purchase, accept and assume
subject to the terms and conditions stated herein, all of Seller’s right, title and interest in and to the Property. 
  
 Section 2.2 Purchase Price. Buyer shall pay Seller the purchase price of Fifty-Six Million Five Hundred Thousand and N01100 Dollars ($56,500,000.00) (the
“Purchase Price”) at Closing. The Purchase Price and such other funds as may be necessary to pay Buyer’s expenses hereunder, subject to closing adjustments, shall be deposited with the Escrow Agent on or before the Closing Date in
accordance with this Agreement and paid to Seller upon satisfaction of all conditions precedent to the Closing as described herein. 
  
 Section 2.3 Deposit. Within three (3) business days after this Agreement is executed by Buyer and Seller, Buyer shall deposit via wire transfer the sum of
Two Hundred Thousand and N0/100 Dollars ($200,000.00) in immediately available funds as a deposit (the “Initial Deposit”) with Escrow Agent whose address is as indicated in Section 10.3. Buyer shall deposit via wire transfer an additional
Five Hundred Thousand and N0/100 Dollars ($500,000.00) (the “Additional Deposit”, the Initial Deposit and the Additional Deposit, collectively, the “Deposit”) in immediately available funds with Escrow Agent by 5:00 p.m. Eastern
Time on the last day of the Estoppel Period (as the same may have been extended pursuant Section 3.7(a) hereof). The Deposit shall be non-refundable except as provided in Sections 3.6, 3.7, 4.2, 5.1, 8.1 and 10.2 and shall be held and delivered by
Escrow Agent in accordance with the provisions of Article 5, or shall be held and delivered by Seller as hereinafter provided. Interest earned on the Deposit shall be considered part of the Deposit and shall be deemed to have been earned by, and
constitute income of, Buyer. Except as otherwise expressly set forth herein, the Deposit shall be applied against the Purchase Price on the Closing Date. 
  
 Section 2.4 Independent Consideration. Contemporaneously with the execution and delivery of this Agreement, Buyer has paid to Seller as further
consideration for this Agreement, in cash, the sum of One Hundred Dollars ($100.00) (the “Independent Consideration”), in addition to the Deposit and the Purchase Price and independent of any other consideration provided hereunder, which
Independent Consideration is fully earned by Seller and is non-refundable under any circumstances. 
  

 - 7 - 

 Section 2.5 Indivisible Economic Package. Buyer has no right to purchase, and Seller has no obligation to
sell, less than all of the Property, it being the express agreement and understanding of Buyer and Seller that, as a material inducement to Seller and Buyer to enter into this Agreement, Buyer has agreed to purchase, and Seller has agreed to sell,
all of the Property, subject to and in accordance with the terms and conditions hereof. 
  
 Section 2.6 Assumption of Obligations. As additional consideration for the purchase and sale of the Property, at Closing Buyer will: (a) assume and perform (i) all of the covenants and obligations of Seller,
Seller’s predecessors in title and Seller’s Affiliates pursuant to the Leases and Contracts (including, without limitation, those relating to any tenant deposits) which arise on or after the Closing Date and (ii) all obligations under the
Leases and Contracts relating to the physical and environmental condition of the Property regardless of whether such obligations arise before, on or after the Closing Date; (b) assume and agree to discharge, perform and comply with each and every
liability, duty, covenant, debt or obligation of Seller or any of its Affiliates (i) resulting front, arising out of, or in any way related to the Disclosure Items set forth in Exhibit B, past, present or future, known or unknown, and (ii) resulting
from, arising out of, or in any way related to any Licenses and Permits and arising on or after the Closing Date; and (c) assume Seller’s obligations to pay, when due (whether on a stated due date or accelerated) any Reimbursable Lease Expenses
in accordance with Section 8.2 of this Agreement or any Reimbursable Capital Expenses that are unpaid as of the Closing Date. Buyer hereby indemnifies and holds Seller harmless from and against any and all claims, liens, damages, demands, causes of
action, liabilities, lawsuits, judgments, losses, costs and expenses (including but not limited to attorneys’ fees and expenses) asserted against or incurred by Seller and arising out of the failure of Buyer to perform its obligations pursuant
to this Section 2.6. The provisions of this Section 2.6 shall survive the Closing without limitation. 
  
 ARTICLE 3 - BUYER’S DUE DILIGENCE/CONDITION OF THE PROPERTY 
  
 Section 3.1 Buyer’s Inspections and Due Diligence. Buyer acknowledges that commencing on the Effective Date and continuing for a period which will
expire at 5:00 p.m. Eastern Time on the thirtieth (30th) day, after the Effective Date (the “Due Diligence Period”), Buyer shall conduct its examinations, inspections, testing, studies and investigations of the Property, information
regarding the Property and such documents applicable to the Property, including, without limitation, the documents that Seller delivers or makes available, as set forth in Section 3.2 below (collectively, the “Due Diligence”). Except for
any limitations as may be imposed by Section 3.3 below, Buyer may conduct such due diligence activities, inspections, and studies of the Property as it deems necessary or appropriate, and examine and investigate to its full satisfaction all facts,
circumstances, and matters relating to the Property (including the physical condition and use, availability and adequacy of utilities, access, zoning, compliance with applicable laws, environmental conditions, engineering and structural matters),
title and survey matters, and any other matters it deems necessary or appropriate for purposes of consummating this transaction. The Due Diligence shall be at Buyer’s sole cost and expense. 
  
 Section 3.2 Due Diligence Items; Delivery Period. 
  
 (a) On or before five (5) business days after the Effective Date, Seller
shall deliver to Buyer, or make available to Buyer for inspection at the Property or at the office of the 
  

 - 8 - 

 Property Manager, the following: (i) the most recent rent roll statement (the “Rent Roll”) with respect to the
Property prepared by Seller, in the form and containing such information as maintained by Seller from time to time, together with copies of all Leases referenced on the Rent Roll and copies of any subleases or amendments relating thereto and Tenant
correspondence in Seller’s possession and a listing of all refundable Tenant Deposits in the actual possession of Seller or the Property Manager as of the last day of the calendar month prior to the Effective Date; (ii) the Survey; (iii) copies
of all Contracts (including any Commission Agreements); (iv) copies of any of the following items pertaining to the Property to the extent they exist and are in Seller’s possession or, control: monthly cashflow reports for the current year to
date; operating statements for the Property for calendar years (or partial years if applicable) 1998, 1999 and 2000; the 2001 budget for Operating Expenses; copies of existing engineering studies and existing environmental audits prepared by third
parties in connection with the Property; the Licenses and Permits; and any lists of material items of personal property owned by Seller and located on the Real Property; (v) a copy of any title insurance commitments and Seller’s existing
policy(ies) of title insurance; (vi) copies of the last two real property tax bills and the most recent assessment notice (collectively, the “Due Diligence Items”). 
  
 (b) All documents, materials, and information furnished to or made available to Buyer pursuant to this Section 3.2 are being
furnished or made available to Buyer for information purposes only and without any representation or warranty by Seller with respect thereto, express or implied, except as may otherwise be expressly set forth in Sections 6.1 and 6.2 below and as
limited by Sections 6.3 and 7.2 below, and all such documents, materials, and information are expressly understood by Buyer to be subject to the confidentiality provisions of Section 3.5 below. 
  
 Notwithstanding any terms to the contrary in this Agreement, (a) Seller shall
not be obligated or otherwise required to furnish or make available to Buyer any of the following (collectively, “Excluded Property Records”): (i) any appraisals or other economic evaluations of, or projections with respect to, all or any
portion of the Property prepared by or on behalf of Seller or any Affiliate of Seller, (ii) any documents, materials or information which are subject to attorney/client, work product or similar privilege, which constitute attorney communications
with respect to the purchase of the Property by Seller, or which are subject to a confidentiality agreement, and (iii) those documents listed on Schedule 3.2 attached hereto; (b) Due Diligence Items shall not include any Excluded Property Records;
and (c) Seller shall have no obligation or liability of any kind to Buyer as a result of Seller not furnishing or making available to Buyer the Excluded Property Records. 
  
 Section 3.3 Site Visits. Buyer and its Licensee Parties shall have reasonable access to the Real Property at agreed upon
times for agreed upon purposes on at least one (1) business day prior notice to Seller. Such notice shall describe the scope of the Due Diligence Buyer intends to conduct during Buyer’s access to the Real Property. Seller shall make reasonable
efforts to have an agent available to accompany Buyer or any Licensee Parties, and in all events Seller shall have the right to have a representative present during any visits to or inspections of any Real Property or any meetings or discussions
with any Tenant by Buyer or any Licensee Parties. Buyer will conduct its Due Diligence in a manner so as to minimize, to the extent reasonably possible to do so, any interference with the operations and occupancy of the Property and to minimize, to
the extent reasonably possible to do so, any disturbance to Tenants. Buyer will not 
  

 - 9 - 

 enter the Real Property or contact any leasing agents for the Real Property or the Property Manager of the Real Property
or any Governmental Entity without Seller’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed; provided that Buyer may contact any independent leasing agents without Seller’s prior written
consent. Neither Buyer nor any Licensee Parties may contact any Tenants at the Real Property or make any inquiries of such Tenants which in any way relate to the Real Property, any of the tenant estoppel certificates, or to Seller without
Seller’s prior written consent. In the event Buyer desires to conduct any physically intrusive Due Diligence, such as sampling of soils, other media, building materials, or the like, Buyer will identify in writing exactly what procedures Buyer
desires to perform and request Seller’s express written consent. Seller may withhold or condition consent to any physically intrusive Due Diligence in Seller’s sole and absolute discretion (other than with respect to core samples of roofs
and asphalt on parking lots for which Seller’s consent shall not be unreasonably withheld or delayed). Seller’s consent to samples of roofs and asphalt parking lots shall be deemed to have been given if Seller does not disapprove such
sampling on or prior to two (2) business days after Seller’s receipt of Buyer’s reasonably detailed sampling plan therefor. Upon receipt of Seller’s written consent, Buyer and all Licensee Parties shall, in performing such Due
Diligence, comply with the agreed upon procedures and with any and all laws, ordinances, rules, and regulations applicable to the Property and will not engage in any activities which would violate any permit, license, or environmental law or
regulation. Buyer and any Licensee Parties will: (a) maintain comprehensive general liability (occurrence) insurance in an amount of not less than $5,000,000 covering any accident arising in connection with the presence of Buyer or the other
Licensee Parties on the Real Property or Improvements, and deliver a certificate of insurance, which names the Seller and the Property Manager as additional insureds thereunder verifying such coverage to Seller prior to entry upon the Real Property
or Improvements; (b) promptly pay when due the costs of all entry and inspections and examinations done with regard to the Property; and (c) restore the Real Property and Improvements to the condition in which the same were found before any such
entry upon the Real Property and inspection or examination was undertaken. 
  
 Section 3.4 Due Diligence Indemnity. Buyer shall defend, indemnify, and hold harmless Seller, Seller’s partners, shareholders or members, as applicable, and the Property Manager from and against all losses,
costs, damages, claims, and liabilities (whether arising out of injury or death to persons or damage to the Property or otherwise) including, but not limited to, costs of remediation, restoration and other similar activities, mechanic’s and
materialmen’s liens and attorneys’ fees, arising out of or in connection with Buyer’s Due Diligence, Buyer’s breach of its obligations under Section 3.5 or Buyer’s or any Licensee Parties’ entry upon the Real Property,
unless any of the same are caused by the gross negligence or willful misconduct of Seller, Seller’s partners, shareholders or members, as applicable, and/or the Property Manager. The provisions of this Section 3.4 shall survive the Closing or,
if the purchase and sale is not consummated, any termination of this Agreement, and shall not be subject to the twelve month limitation set forth in Section 6.3. 
  
 Section 3.5 Confidentiality. Buyer agrees that any information obtained by Buyer or its Licensee Parties, attorneys,
partners, accountants, lenders or investors (collectively, for purposes of this Section 3.5, the “Permitted Outside Parties”) in the conduct of its Due Diligence shall be treated as confidential pursuant to Section 10.11 of this Agreement
and shall be used only to evaluate the acquisition of the Property from Seller. Buyer further agrees that within its 
  

 - 10 - 

 organization, or as to the Permitted Outside Parties, the Due Diligence Items will be disclosed and exhibited only to
those persons within Buyer’s organization or to those Permitted Outside Parties who are involved in determining the feasibility of Buyer’s acquisition of the Property. Buyer farther acknowledges that the Due Diligence Items and other
information relating to the leasing arrangements between Seller and any tenants or prospective tenants are proprietary and confidential in nature. Buyer agrees not to divulge the contents of such Due Diligence Items or any other information except
in strict accordance with Sections 3.5 and 10.11 of this Agreement In permitting Buyer and the Permitted Outside Parties to review the Due Diligence Items and other information to assist Buyer, Seller has not waived any privilege or claim of
confidentiality with respect thereto, and no third party benefits or relationships of any kind, either express or implied, have been offered, intended or created by Seller and any such claims are expressly rejected by Seller and waived by Buyer and
the Permitted Outside Parties, for whom, by its execution of this Agreement, Buyer is acting as an agent with regard to such waiver. The provisions of this Section 3.5 shall survive the Closing without limitation. 
  
 Section 3.6 Due Diligence Period. Buyer, by giving Seller and Escrow Agent
written notice on or before the end of the Due Diligence Period, may terminate its obligations hereunder without further liability except as described in this Section 3.6 and in Sections 3.4, 3.5, 9.6, and 10.11. If before the end of the Due
Diligence Period, Buyer fails to give Seller such written notice, then Buyer shall be deemed to have elected to waive its rights to terminate this Agreement and to have approved all of the matters described in Sections 3.1 and 3.2. If Buyer timely
elects to terminate its obligations hereunder as described above, Buyer shall provide to Seller, promptly after receipt of a request from Seller, originals of all third party reports, studies and appraisals relating to the Property in its
possession, without representation or warranty and at no cost to Seller. The foregoing obligation shall survive any termination of this Agreement. On the final day of the Due Diligence Period unless Buyer has elected to terminate this Agreement as
provided herein, Buyer shall deliver to Seller invoices from third parties for examinations, tests, inspections, studies or investigations performed in connection with Seller’s Due Diligence (including, without limitation, environmental
studies), and a copy of an executed commitment letter and evidence of payment of a commitment fee with respect to Buyer’s financing for the Property. Subject to the terms of this Agreement, Buyer, after the expiration of the Due Diligence
Period, may continue to conduct further physical Due Diligence or other examinations, inspections, tests, studies and investigations regarding the Property; provided, however, that except as otherwise expressly provided in Sections 5.1 and 10.2.2,
in no event shall Buyer have any right to terminate or otherwise modify its obligations hereunder after the end of the Due Diligence Period as a result of any such further physical Due Diligence or other examinations, inspections, tests, studies or
investigations regarding the Property, and the provisions of this Article 3, including, without limitation, the indemnification provisions, shall continue to apply. 
  
 Section 3.7 Estoppel Certificates. 
  

(a) As a condition to Buyer’s obligation to close the transaction contemplated by this Agreement, Seller shall, within thirty (30) days of the
Effective Date (the “Estoppel Period”), obtain estoppel certificates from those Tenants, who, in the aggregate, as of the Effective Date, occupy or lease at least eighty-five percent (85%) of the total square footage of the Improvements.
Such certificates shall be substantially in a form mutually agreed upon within two (2) business days of the Effective Date or, if Buyer and Seller have not agreed upon a form 
  

 - 11 - 

 within such two (2) business day period, then in the form of Exhibit H attached hereto. A copy of each estoppel
certificate received by Seller from a Tenant shall be delivered by Seller to Buyer promptly after Seller receives such certificate from the Tenant. In the event that Seller has not delivered the requisite number of estoppel certificates within the
time period provided herein, then, either Seller or Buyer may, by written notice to the other party, extend the Estoppel Period for an additional ten (10) days to satisfy such condition. 
  
 (b) In the event that Buyer has not received the required estoppel certificates within the Estoppel Period, (as the same may
have been extended pursuant to Section 3.7(a) hereof), then Buyer may, by giving Seller and Escrow Agent written notice on or before the expiration of the Estoppel Period, terminate its obligations hereunder without further liability except as
described in Sections 3.4, 3.5, 3.6, 9.6 and 10.11, and Escrow Agent shall promptly thereafter return the Deposit to Buyer. If, before the end of the Estoppel Period, Buyer fails to give Seller such written notice, then Buyer shall be deemed to have
elected to waive its right to terminate this Agreement pursuant to this Section 3.7(b). After the expiration of the Estoppel Period, provided Buyer has not terminated this Agreement, Seller shall continue to use reasonable efforts to obtain and
deliver to Buyer estoppel certificates from the Tenants of the Property whose Leases will continue after the Closing to the extent Seller has not previously delivered to Buyer estoppel certificates from such Tenants; provided, however, in no event
shall Buyer have any right to terminate its obligations hereunder after the end of the Estoppel Period as a result of any estoppel certificates received or not received by Buyer after the end of the Estoppel Period. 
  
 Section 3.8 SNDA’s. Upon Buyer’s request, Seller will use
reasonable efforts to obtain from each Tenant a subordination, non-disturbance and attornment agreement in such form as the lender providing financing to Buyer may request (the “SNDA’s”). Buyer acknowledges that Seller shall have
exercised reasonable efforts by delivering the form of SNDA to the Tenants. Obtaining any such SNDA’s shall not, however, be a condition to the Closing, nor shall Seller incur any liability in connection with failing to obtain any such
SNDA’s. Seller will deliver an original of each SNDA to Buyer promptly following Seller’s receipt of the same. 
  
 ARTICLE 4 - TITLE AND SURVEY 
  
 Section 4.1 Title to Real Property. Seller shall make available to Buyer not later than five (5) business days after the Effective Date (a) a commitment
to issue an owner’s policy of title insurance with respect to the Property issued by the Title Company (the “Title Commitment”), (b) copies of all recorded documents referred to on Schedule B of the Title Commitment as exceptions to
coverage (the “Title Documents”), and (c) the Survey. 
  
 Section 4.2 Certain Exceptions to Title. Buyer shall have the right to object in writing to any title matters that are not Permitted Exceptions and that materially adversely affect Buyer’s title to the Real Property which are disclosed
in the Title Commitment or Survey (herein collectively called “Liens”) within fifteen (15) days after receipt of the Title Commitment and Survey. Unless Buyer shall timely object to the Liens, all such Liens and any other encumbrances
which do not materially adversely affect Buyer’s title to the Real Property which are set forth in the Title Commitment and any such supplemental reports or updates shall be deemed to constitute additional Permitted Exceptions. Any exceptions
which are timely objected 
  

 - 12 - 

 to by Buyer shall be herein collectively called the “Title Objections.” Seller may elect (but shall not be
obligated) to remove or cause to be removed, or insured over, at its expense, any Title Objections, and shall be entitled to a reasonable adjournment of the Closing (not to exceed ninety (90) days) for the purpose of such removal, which removal will
be deemed effected by the issuance of title insurance eliminating or insuring against the effect of the Title Objections. Seller shall notify Buyer in writing within ten (10) days after receipt of Buyer’s notice of Title Objections whether
Seller elects to remove the same. Notwithstanding anything to the contrary contained herein, in the event that any Title Objection exists which the Title Company will not remove or endorse over but which First American Title Insurance Company has
agreed to remove or endorse over, Seller, by written notice thereof to Buyer and the Title Company, may elect to use First American Title Insurance Company as the Title Company and Escrow Agent, in which case, the original Escrow Agent shall, within
three (3) business days of such notice, transfer any funds and/or documents held by it with respect to the transaction contemplated by this Agreement to First American Title Insurance Company, who will supercede and replace Stewart Title Guaranty
Company as the Title Company and New Enterprise Title Group, Inc. as Escrow Agent. If Seller is unable to remove or endorse over any Title Objections prior to the Closing, or if Seller elects not to remove one or more Title Objections, Buyer may
elect, as its sole and exclusive remedy therefore, to either (a) terminate this Agreement by giving written notice to Seller and Escrow Agent on or before the end of the Due Diligence Period, in which event the Deposit shall be paid to Buyer and,
thereafter, the parties shall have no further rights or obligations hereunder except for those obligations which expressly survive the termination of this Agreement as set forth in Sections 3.4, 5.5, 3.6, 9.6 and 10.11, or (b) waive such Title
Objections, in which event such Title Objections shall be deemed additional “Permitted Exceptions” and the Closing shall occur as herein provided without any reduction of or credit against the Purchase Price. If before the end of the Due
Diligence Period, Buyer fails to give Seller and Escrow Agent such written notice, then Buyer shall be deemed to have elected to waive such Title Objections and its right to terminate this Agreement pursuant to this Section 4.2. Notwithstanding the
foregoing, Seller shall be obligated at Closing to cause the release of the liens of any financing which is secured by the Property and to release or, at Seller’s option, insure over any other monetary liens affecting the Property. 

 
 Section 4.3 Title Insurance. At Closing, the Title Company shall issue to
Buyer or be irrevocably committed to issue to Buyer an extended coverage ALTA owner’s form title policy (the “Title Policy”), in the amount of the Purchase Price, insuring that fee simple title to the Real Property is vested in Buyer
subject only to the Permitted Exceptions. Buyer shall be entitled to request that the Title Company provide such endorsements (or amendments) to the Title Policy as Buyer may reasonably require, provided that (a) such endorsements (or amendments)
shall be at no cost to, and shall impose no additional liability on, Seller, (b) Buyer’s obligations under this Agreement shall not be conditioned upon Buyer’s ability to obtain such endorsements and, if Buyer is unable to obtain such
endorsements, Buyer shall nevertheless be obligated to proceed to close the transaction contemplated by this Agreement without reduction of or set off against the Purchase Price, and (c) the Closing shall not be delayed as a result of Buyer’s
request. 
  
 ARTICLE 5 - REMEDIES AND DEPOSIT INSTRUCTIONS

  
 Section 5.1 Permitted Termination; Seller Default. If the sale
of the Property is not consummated due to the permitted termination of this Agreement by Buyer as herein expressly 
  

 - 13 - 

 provided, the Deposit shall be returned to Buyer and Buyer will have no liability hereunder except as set forth in
Sections 3.4, 3.5, 3.6, 9.6 and 10.11. If the sale of the Property is not consummated due to Seller’s default hereunder, Buyer shall be entitled, as its sole and exclusive remedy, either (a) to receive the return of the Deposit, or (b) to
enforce specific performance of this Agreement. Buyer expressly waives its rights to seek any damages in the event of Seller’s default hereunder. Buyer shall be deemed to have elected to terminate this Agreement and receive back the Deposit if
Buyer fails to file suit for specific performance against Seller in a court prescribed by Section 10.5 hereof, on or before twenty (20) days following the date upon which Closing was to have occurred. 
  
 Section 5.2 Buyer Default; Liquidated Damages. IF THE SALE IS NOT CONSUMMATED
DUE TO ANY DEFAULT BY BUYER HEREUNDER, THEN SELLER SHALL RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES, WHICH RETENTION SHALL OPERATE TO TERMINATE THIS AGREEMENT AND RELEASE BUYER FROM ANY AND ALL LIABILITY HEREUNDER, EXCEPT AS PROVIDED IN SECTIONS 3.4,
3.5, 3.6, 9.6 AND 10.11. THE PARTIES HAVE AGREED THAT SELLER’S ACTUAL DAMAGES, IN THE EVENT OF A FAILURE TO CONSUMMATE THIS SALE DUE TO BUYER’S DEFAULT, WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. AFTER NEGOTIATION, THE
PARTIES HAVE AGREED THAT, CONSIDERING ALL THE CIRCUMSTANCES EXISTING ON THE DATE OF THIS AGREEMENT, THE AMOUNT OF THE DEPOSIT IS A REASONABLE ESTIMATE OF THE DAMAGES THAT SELLER WOULD INCUR IN SUCH EVENT. BY PLACING THEIR INITIALS BELOW, EACH PARTY
SPECIFICALLY CONFIRMS THE ACCURACY OF THE STATEMENTS MADE ABOVE AND THE FACT THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO EXPLAINED, AT THE TIME THIS AGREEMENT WAS MADE, THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION. THE FOREGOING IS NOT
INTENDED TO LIMIT BUYER’S (OR SELLER’S, AS APPLICABLE) SURVIVING OBLIGATIONS UNDER SECTIONS 3.4, 3.5, 3.6, 9.6 AND 10.11. 
  
 Initials: Seller                 Buyer
             
  
 Section 5.3 Deposit Instructions. The Escrow Agent joins herein below to evidence its agreement to hold such funds in accordance with the terms and conditions of this Agreement. Further, the following provisions shall
control with respect to the rights, duties and liabilities of the Escrow Agent. 
  
 5.3.1 The Escrow Agent acts hereunder as a depository only and is not responsible or liable in any manner whatsoever for the (i) sufficiency, correctness, genuineness or validity of any written instrument, notice or
evidence of a party’s receipt of any instruction or notice which is received by the Escrow Agent, or (ii) identity or authority of any person executing such instruction notice or evidence. 
  
 5.3.2 The Escrow Agent shall have no responsibility hereunder except for the
performance by it in good faith of the acts to be performed by it hereunder, and the Escrow Agent shall have no liability except for its own willful misconduct or gross negligence. 
  

 - 14 - 

 5.3.3 The Escrow Agent shall be reimbursed on an equal basis by Buyer and Seller for any reasonable
expenses incurred by the Escrow Agent arising from a dispute with respect to the amount held in escrow, including the cost of any legal expenses and court costs incurred by the Escrow Agent, should the Escrow Agent deem it necessary to retain an
attorney with respect to the disposition of the amount held in escrow. 
  
 5.3.4 In the event of a dispute between the parties hereto with respect to the disposition of the amount held in escrow, the Escrow Agent shall be entitled, at its own discretion, to deliver such amount to an appropriate court of law
pending resolution of the dispute. 
  
 5.3.5 The Escrow Agent
shall invest the amount in escrow in accounts which are federally insured or which invest solely in government securities and shall be applied in accordance with the terms of this Agreement. Interest earned thereon shall be added to the funds
deposited by Buyer. 
  
 Section 5.4 Designation of Reporting
Person. In order to assure compliance with the requirements of Section 6045 of the Internal Revenue Code of 1986, as amended (for purposes of this Section 5 4, the “Code”), and any related reporting requirements of the Code, the parties
hereto agree as follows: 
  
 (a) Provided the Escrow Agent shall
execute a statement in writing (in form and substance reasonably acceptable to the parties hereunder) pursuant to which it agrees to assume all responsibilities for information reporting required under Section 6045(e) of the Code, Seller and Buyer
shall designate the Escrow Agent as the person to be responsible for all information reporting under Section 6045(e) of the Code (the “Reporting Person”). If the Escrow Agent refuses to execute a statement pursuant to which it agrees to be
the Reporting Person, Seller and Buyer shall agree to appoint another third party as the Reporting Person. 
  
 (b) Seller and Buyer hereby agree: 
  
 (i) to provide to the Reporting Person all information and certifications regarding such party, as reasonably requested by the Reporting
Person or otherwise required to be provided by a party to the transaction described herein under Section 6045 of the Code; and 
  
 (ii) to provide to the Reporting Person such party’s taxpayer identification number and a statement (on Internal Revenue Service Form
W-9 or an acceptable substitute form, or on any other form the applicable current or future Code sections and regulations might require and/or any form requested by the Reporting Person), signed under penalties of perjury, stating that the taxpayer
identification number supplied by such party to the Reporting Person is correct. 
  
 (c) Each party hereto agrees to retain this Agreement for not less than four years from the end of the calendar year in which the Closing occurred, and to produce it to the Internal Revenue Service upon a valid
request therefor. 
  

 - 15 - 

 ARTICLE 6 - REPRESENTATIONS AND WARRANTIES OF SELLER 
  
 Section 6.1 Representations and Warranties of Development. Subject to the
provisions of Sections 6.3 and 7.4 and except for those matters described in Exhibit B (the “Disclosure Items”) for which Development makes no representations or warranties of any kind and for which Development shall have no liability or
obligation to Buyer of any kind whatsoever, Development makes the following representations and warranties with respect to the Property owned by Development: 
  

(a) Status. Development is a limited liability company duly organized or formed, validly existing and in good standing under the laws of the State of
Delaware. 
  
 (b) Authority. The execution and delivery of this
Agreement and the performance of Development’s obligations hereunder have been or will be duly authorized by all necessary action on the part of Development, and this Agreement constitutes the legal, valid and binding obligation of Development,
subject to equitable principles and principles governing creditors’ rights generally. 
  
 (c) Non-Contravention. The execution and delivery of this Agreement by Development and the consummation by Development of the transactions contemplated hereby will not, to Development’s knowledge (i) violate any
judgment, order, injunction, decree, regulation or ruling of any court or Governmental Entity or (ii) conflict with, result in a breach of, or constitute a default under the organic documents of Development, any note or other evidence of
indebtedness, any mortgage, deed of trust or indenture, or any lease or other material agreement or instrument to which Development is a party or by which Development may be bound. 
  
 (d) Suits and Proceedings. To Development’s knowledge, there are no legal actions, suits or similar proceedings pending
and served, or threatened against Development or the Property owned by Development which (i) are not adequately covered by existing insurance or (ii) if adversely determined, would adversely affect the value of the Property owned by Development, the
continued operations thereof, or Development’s ability to consummate the transactions contemplated hereby. 
  
 (e) Non-Foreign Entity. Development is not a “foreign person” or “foreign corporation” as those terms are defined in the Internal
Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 
  
 (f) Consents. No consent, waiver, approval or authorization is required from any person or entity (that has not already been obtained) in connection with the execution and delivery of this Agreement by Development or
the performance by Development of the transactions contemplated hereby. 
  
 (g) Condemnation. To Development’s knowledge, Development has not received any written condemnation notice from any Governmental Entity with respect to all or part of the Property owned by Development. 
  

 - 16 - 

 (h) Bankruptcy. Development has not (i) commenced a voluntary case, or had entered against it a petition,
for relief under any federal bankruptcy act or any similar petition, order or decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors, (ii) caused, suffered or consented to the appointment of a
receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non judicial proceedings, to hold, administer and/or liquidate all or substantially all of its property, or (iii) made an
assignment for the benefit of creditors. 
  
 (i) Employees.
Development has no employees with respect to the Property. 
  
 (j)
Environmental. To Development’s knowledge, Development has or will deliver to Buyer pursuant to Section 3.2 true, correct and complete copies of all third party environmental audits with respect to the Property in Development’s possession.

  
 (k) Due Diligence. Items To Development’s knowledge,
Development has delivered (or will deliver within the time provided herein), or has made (or will make) available to Buyer at the Property or at the offices of the Property Manager, all Due Diligence Items pursuant to Section 3.2 relating to the
Property owned by Development. 
  
 Section 6.2 Representations and
Warranties of Washington. Subject to the provisions of Sections 6.3 and 7.4 and except for the Disclosure Items for which Washington makes no representations or warranties of any kind and for which Washington shall have no liability or obligation to
Buyer of any kind whatsoever, Washington makes the following representations and warranties with respect to the Property owned by Washington: 
  
 (a) Status. Washington is a limited liability company duly organized or formed, validly existing and in good standing under the laws of the State of
Delaware. 
  
 (b) Authority. The execution and delivery of this
Agreement and the performance of Washington’s obligations hereunder have been or will be duly authorized by all necessary action on the part of Washington, and this Agreement constitutes the legal, valid and binding obligation of Washington,
subject to equitable principles and principles governing creditors’ rights generally. 
  
 (c) Non-Contravention. The execution and delivery of this Agreement by Washington and the consummation by Washington of the transactions contemplated hereby will not, to Washington’s knowledge (i) violate any
judgment, order, injunction, decree, regulation or ruling of any court or Governmental Entity or (ii) conflict with, result in a breach of, or constitute a default under the organic documents of Washington, any note or other evidence of
indebtedness, any mortgage, deed of trust or indenture, or any lease or other material agreement or instrument to which Washington is a party or by which Washington may be bound. 
  
 (d) Suits and Proceedings. To Washington’s knowledge, there are no legal actions, suits or similar proceedings pending
and served, or threatened against Washington or the Property owned by Washington which (i) are not adequately covered by existing insurance or (ii) if adversely determined, would adversely affect the value of the Property owned by Washington, the
continued operations thereof, or Washington’s ability to consummate the transactions contemplated hereby. 
  

 - 17 - 

 (e) Non-Foreign Entity. Washington is not a “foreign person” or “foreign corporation”
as those terms are defined in the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 
  
 (f) Consents. No consent, waiver, approval or authorization is required from any person or entity (that has not already been obtained) in connection with
the execution and delivery of this Agreement by Washington or the performance by Washington of the transactions contemplated hereby. 
  
 (g) Condemnation. To Washington’s knowledge, Washington has not received any written condemnation notice from any Governmental Entity with respect to
all or part of the Property owned by Washington. 
  
 (h)
Bankruptcy. Washington has not (i) commenced a voluntary case, or had entered against it a petition, for relief under any federal bankruptcy act or any similar petition, order or decree under any federal or state law or statute relative to
bankruptcy, insolvency or other relief for debtors, (ii) caused, suffered or consented to the appointment of a receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non judicial
proceedings, to hold, administer and/or liquidate all or substantially all of its property, or (iii) made an assignment for the benefit of creditors. 
  
 (i) Employees. Washington has no employees with respect to the Property. 
  
 (j) Environmental. To Washington’s knowledge, Washington has or will deliver to Buyer pursuant to Section 3.2 true,
correct and complete copies of all third party environmental audits with respect to the Property in Washington’s possession. 
  
 (k) Due Diligence Items. To Washington’s knowledge, Washington has delivered (or will deliver within the time provided herein), or has made (or will
make) available to Buyer at the Property or at the offices of the Property Manager, all Due Diligence Items pursuant to Section 3.2 relating to the Property owned by Washington. 
  
 (l) Leases. As of the Effective Date, the Tenants listed on the Rent Roll constitute all of the Tenants (exclusive of
subtenants or licensees) at the Property. 
  
 (m) Contracts. As of
the Effective Date, the Contracts listed on Exhibit C constitute all of the service contracts or other contracts in force with respect to the Property. 
  
 Section 6.3 Limited Liability. The representations and warranties of Development and Washington set forth in Sections 6.1 and 6.2, respectively, together
with Seller’s liability for any breach before Closing of any of Seller’s interim operating covenants under Article 8, will survive the Closing for a period of twelve (12) months Buyer will not have any right to bring any action against
either Development or Washington as a result of any untruth or inaccuracy of such representations and warranties, or any such breach, unless and until the aggregate amount of all liability and losses arising out of any such untruth or, inaccuracy,
or any such breach, exceeds $100,000.00, and then only to the extent of such excess In addition, in no event will Development’s and Washington’s liability for all such breaches exceed, in the aggregate, $500,000. Neither Development nor
Washington shall have no liability with respect to any of its 
  

 - 18 - 

 representations, warranties and covenants herein if, prior to the Closing, Buyer has actual knowledge of any breach of a
representation, warranty or covenant of Development or Washington herein, or Buyer obtains knowledge (from whatever source, including, without limitation, any tenant estoppel certificates or any of the Due Diligence Items, as a result of
Buyer’s Due Diligence, the inclusion of any information in or written disclosure by Seller or Seller’s agents and employees) that contradicts any of Development’s or Washington’s representations and warranties herein, and Buyer
nevertheless consummates the transaction contemplated by this Agreement. Sections 3.4, 3.5, 3.6, 9.6 and 10.11 will survive Closing without limitation unless a specified period is otherwise provided in this Agreement. All other representations,
warranties, covenants and agreements made or undertaken by either Development or Washington under this Agreement, unless otherwise specifically provided herein, will not survive the Closing Date but will be merged into the Deed and other Closing
documents delivered at the Closing. 
  
 Section 6.4 Knowledge. For
purposes of this Agreement and any document delivered at Closing, whenever the phrase “to Development’s knowledge,” “to Washington’s knowledge,” “to Seller’s knowledge,” or the “knowledge” of
Washington, Development or Seller or words of similar import are used, they shall be deemed to refer to facts within the actual knowledge only of Scott Fitzgerald and James Dow of Seller and Kenneth Klimala of ASP Holdings, L.L.C. and no others, at
the times indicated only, without duty of inquiry whatsoever. In no event shall Development, Washington or Seller have or be deemed to have knowledge on any matter solely by reason of notice thereof being imputed by operation of law or otherwise to
Kenneth Klimala as a result of Kenneth Klimala having been an officer of Allstate Insurance Company, an affiliate of the predecessor in interest of Seller of the Property. 
  
 Section 6.5 Liability of Representations and Warranties. Buyer acknowledges that the individuals named above are named
solely for the purpose of defining and narrowing the scope of Seller’s knowledge and not for the purpose of imposing any liability on or creating any duties running from such individuals to Buyer. Buyer covenants that it will bring no action of
any kind against such individuals, any shareholder, partner or member of Seller, as applicable, or related to or arising out of these representations and warranties. 
  
 ARTICLE 7 - REPRESENTATIONS AND WARRANTIES OF BUYER 
  
 Section 7.1 Buyer’s Representations and Warranties. Buyer represents and warrants to Seller the following: 

 
 (a) Status. Buyer is a limited liability company duly organized and
validly existing under the laws of the State of Maryland. 
  
 (b)
Authority. The execution and delivery of this Agreement and the performance of Buyer’s obligations hereunder have been or will be duly authorized by all necessary action on the part of Buyer and this Agreement constitutes the legal, valid and
binding obligation of Buyer, subject to equitable principles and principles governing creditors’ rights generally. 
  

 - 19 - 

 (c) Non-Contravention. The execution and delivery of this Agreement by Buyer and the consummation by
Buyer of the transactions contemplated hereby will not violate any judgment, order, injunction, decree, regulation or ruling of any court or Governmental Entity or conflict with, result in a breach of, or constitute a default under the organic
documents of Buyer, any note or other evidence of indebtedness, any mortgage, deed of trust or indenture, or any lease or other material agreement or instrument to which Buyer is a party or by which it is bound. 
  
 (d) Consents. No consent, waiver, approval or authorization is required from
any person or entity (that has not already been obtained) in connection with the execution and delivery of this Agreement by Buyer or the performance by Buyer of the transactions contemplated hereby. 
  
 (e) Bankruptcy. Buyer has not (i) commenced a voluntary case, or had entered
against it a petition, for relief under any federal bankruptcy act or any similar petition, order or decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors, (ii) caused, suffered or consented
to the appointment of a receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non judicial proceeding, to hold, administer and/or liquidate all or substantially all of its
property, or (iii) made an assignment for the benefit of creditors. 
  
 (f) Solvency. Buyer will not be rendered insolvent in connection with, or as a result of, the performance by Buyer of its obligations hereunder or the consummation of the transactions contemplated hereby. 
  
 Section 7.2 Buyer’s Independent Investigation. 
  
 7.2.1 Buyer has been given, or will be given before the end of the Due
Diligence Period, a full opportunity to inspect and investigate each and every aspect of the Property, either independently or through agents of Buyer’s choosing, including, without limitation: 
  
 (a) All matters relating to title, together with all governmental and other
legal requirements such as taxes, assessments, zoning, use permit requirements, and building codes; 
  
 (b) The physical condition and aspects of the Property, including, without limitation, the interior, the exterior, the square footage within the
improvements on the Real Property and within each tenant space therein, the structure, the paving, the utilities, and all other physical and functional aspects of the Property, including, without limitation, an examination for the presence or
absence of Hazardous Materials, which shall be performed or arranged by Buyer at Buyer’s sole expense; 
  
 (c) Any easements and/or access rights affecting the Property; 
  
 (d) The Leases and all matters in connection therewith, including, without limitation, the ability of the Tenants to pay Rent; 
  

 - 20 - 

 (e) The Contracts, the Licenses and Permits, the Commission Agreements and any other documents or
agreements of significance affecting the Property; and 
  
 (f) All
other matters of material significance affecting the Property or delivered to Buyer by Seller accordance with Article 3 of this Agreement. 
  
 7.2.2 THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT HAS BEEN NEGOTIATED BETWEEN SELLER AND BUYER, THIS AGREEMENT REFLECTS THE MUTUAL AGREEMENT OF SELLER
AND BUYER, AND BUYER HAS CONDUCTED, OR WILL CONDUCT, ITS OWN INDEPENDENT EXAMINATION OF THE PROPERTY. OTHER THAN THE MATTERS REPRESENTED IN SECTIONS 6.1 AND 6.2 HEREOF AS SUCH MAY BE LIMITED BY SECTION 6.3 HEREOF, BUYER HAS NOT RELIED UPON AND WILL
NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY, ANY REPRESENTATION OR WARRANTY OF SELLER OR ANY OF SELLER’S AGENTS OR REPRESENTATIVES, AND BUYER HEREBY ACKNOWLEDGES THAT NO SUCH REPRESENTATIONS HAVE BEEN MADE. SELLER SPECIFICALLY DISCLAIMS, AND
NEITHER IT NOR ANY OTHER PERSON IS MAKING, ANY REPRESENTATION, WARRANTY OR ASSURANCE WHATSOEVER TO BUYER AND NO WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EITHER EXPRESS OR IMPLIED, ARE MADE BY SELLER OR RELIED UPON BY BUYER WITH
RESPECT TO THE STATUS OF TITLE TO OR THE MAINTENANCE, REPAIR, CONDITION, DESIGN OR MARKETABILITY OF THE PROPERTY, OR ANY PORTION THEREOF, INCLUDING BUT NOT LIMITED TO (a) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY, (b) ANY IMPLIED OR EXPRESS
WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, (c) ANY IMPLIED OR EXPRESS WARRANTY OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS, (d) ANY RIGHTS OF BUYER UNDER APPROPRIATE STATUTES TO CLAIM DIMINUTION OF CONSIDERATION, (e) ANY CLAIM BY BUYER FOR
DAMAGES BECAUSE OF DEFECTS, WHETHER KNOWN OR UNKNOWN, WITH RESPECT TO THE IMPROVEMENTS OR THE PERSONAL PROPERTY, (f) THE FINANCIAL CONDITION OR PROSPECTS OF THE PROPERTY AND (g) THE COMPLIANCE OR LACK THEREOF OF THE REAL PROPERTY OR THE IMPROVEMENTS
WITH GOVERNMENTAL REGULATIONS, IT BEING THE EXPRESS INTENTION OF SELLER AND BUYER THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PROPERTY WILL BE CONVEYED AND TRANSFERRED TO BUYER IN ITS PRESENT CONDITION AND STATE OF REPAIR, “AS
IS” AND “WHERE IS”, WITH ALL FAULTS. Buyer represents that it is a knowledgeable, experienced and sophisticated buyer of real estate, and that it is relying solely on its own expertise and that of Buyer’s consultants in
purchasing the Property and that it is receiving reasonably equivalent value in consummating the transactions contemplated hereby. Buyer acknowledges and agrees that it will have the opportunity to conduct such inspections, investigations and other
independent examinations of the Property and related matters, including but not limited to the physical and environmental conditions thereof, during the Due Diligence Period and, except as set forth in Sections 6.1 and 6.2 (as limited by Section
6.3), Buyer will rely upon same and not upon any statements of Seller or of any officer, director, employee, agent or attorney of Seller. Buyer acknowledges that all information obtained by Buyer will be obtained from a variety of sources and Seller
will not be deemed to have represented or warranted the completeness, truth or accuracy of any of the Due Diligence Items or other such information 
  

 - 21 - 

 heretofore or hereafter furnished to Buyer. Upon Closing, Buyer will assume the risk that adverse matters, including, but
not limited to, adverse physical and environmental conditions, may not have been revealed by Buyer’s inspections and investigations. Buyer acknowledges and agrees that upon Closing, Seller will sell and convey to Buyer, and Buyer will accept
the Property, “AS IS, WHERE IS,” with all faults. Buyer further acknowledges and agrees that there are no oral agreements, warranties or representations, collateral to or affecting the Property, by Seller, any agent of Seller or any third
party. Seller is not liable or bound in any manner by any oral or written statements, representations or information pertaining to the Property furnished by any real estate broker, agent, employee, servant or other person, unless the same are
specifically set forth or referred to herein. Buyer acknowledges that the Purchase Price reflects the “as is, where is” nature of this sale and any faults, liabilities, defects or other adverse matters that may be associated with the
Property. BUYER, WITH BUYER’S COUNSEL, HAS FULLY REVIEWED THE DISCLAIMERS AND WAIVERS SET FORTH IN THIS AGREEMENT, AND UNDERSTANDS THE SIGNIFICANCE AND EFFECT THEREOF. BUYER ACKNOWLEDGES AND AGREES THAT THE DISCLAIMERS AND OTHER AGREEMENTS SET
FORTH HEREIN ARE AN INTEGRAL PART OF THIS AGREEMENT, AND THAT SELLER WOULD NOT HAVE AGREED TO SELL THE PROPERTY TO BUYER FOR THE PURCHASE PRICE WITHOUT THE DISCLAIMER AND OTUER AGREEMENTS SET FORTH IN THIS AGREEMENT. THE TERMS AND CONDITIONS OF THIS
SUBSECTION 7.2.2 WILL EXPRESSLY SURVIVE THE CLOSING, WILL NOT MERGE WITH THE PROVISIONS OF ANY CLOSING DOCUMENTS AND WILL BE INCORPORATED INTO THE DEED. 
  
 Section 7.3 Buyer’s Release of Seller 
  
 7.3.1 Seller Released From Liability. Seller is hereby released from all responsibility and liability to Buyer regarding the condition (including its
physical condition and its compliance with applicable laws, and the presence in the soil, air, structures and surface and subsurface waters, of Hazardous Materials or substances that have been or may in the future be determined to be toxic,
hazardous, undesirable or subject to regulation and that may need to be specially treated, handled and/or removed from the Property under current or future federal, state and local laws, regulations or guidelines), valuation, salability or utility
of the Property, or its suitability for any purpose whatsoever except to the extent that such responsibility or liability is the result of the material inaccuracy (if any) of Seller’s representations under Sections 6.1 or 6.2 hereof.

  
 7.3.2 Buyer’s Waiver of Objections. Buyer acknowledges
that it has or will have inspected the Property, observed its physical characteristics and existing conditions and had, or will have, the opportunity to conduct such investigation and study on and of said Property and adjacent areas as it deemed
necessary, and subject to Seller’s responsibility for any breach of the warranties and representations contained in Sections 6.1 and 6.2 of this Agreement, hereby waives any and all objections to or complaints (including but not limited to
actions based on federal, state or common law and any private right of action under CERCLA, RCRA or any other state and federal law to which the Property is or may be subject) regarding physical characteristics and existing conditions, including
without limitation structural and geologic conditions; subsurface soil and water conditions and solid and hazardous waste and Hazardous Materials on, under, adjacent to or otherwise affecting the Property. Buyer further hereby 
  

 - 22 - 

 assumes the risk of changes in applicable laws and regulations relating to past, present and future environmental
conditions on the Property, and the risk that adverse physical characteristics and conditions, including without limitation the presence of Hazardous Materials or other contaminants, may not be revealed by its investigation. 
  
 7.3.3 Survival. The foregoing waivers and releases by Buyer shall survive
either (a) the Closing and the recordation of the Deed, and shall not be deemed merged into the Deed upon its recordation, or (b) any termination of this Agreement. 
  
 Section 7.4 Discharge. Notwithstanding any other provisions contained herein, or in any document or instrument delivered in
connection with the transfer contemplated hereby, to the contrary (including, without limitation, any language providing for survival of certain provisions hereof or thereof), Buyer hereby acknowledges and agrees that (a) prior to Closing,
Buyer’s sole recourse in the event of a breach by Seller shall be as set forth in Section 5.1 hereof, and (b) Seller shall, upon consummation of Closing, be deemed to have satisfied and fulfilled all of Seller’s covenants, indemnities, and
obligations contained in this Agreement and the documents delivered pursuant hereto, and Seller shall have no further liability to Buyer or otherwise with respect to this Agreement, the transfers contemplated hereby, or any documents delivered
pursuant hereto, except to the extent of any obligation or liability Seller may have under Sections 6.1 and 6.2 as to which Seller’s liability, if any, shall be limited as provided in Section 6.3, and under Sections 9.6 and 10.11. 

 
 ARTICLE 8 - LEASES; MAINTENANCE OF PROPERTY 
  
 From the date hereof until the Closing, and except as otherwise consented to
or approved by Buyer, Seller covenants and agrees with Buyer as follows: 
  
 Section 8.1 New Leases; Lease Modifications. 
  
 8.1.1 Except as set forth in Section 8.1.2 with respect to the building commonly known as Building No. 9, after the Effective Date, Seller shall not, without Buyer’s prior written consent in each instance, which
consent shall not be unreasonably withheld and shall be given or denied in good faith, with the reasons for such denial specified in reasonable detail, within three (3) business days after receipt by Buyer of the information referred to in the next
sentence, enter into a New Lease; modify or amend any Pre-Effective Date Lease or any New Lease entered into after the Effective Date (except pursuant to the exercise by a Tenant of a renewal, extension or expansion option or other right contained
in such Tenant’s lease); consent to any assignment or sublease in connection with any Pre-Effective Date Lease or New Lease; or remove any tenant under any Pre-Effective Date Lease or New Lease, whether by summary proceedings or otherwise,
except by reason of a default of the tenant under the subject Pre-Effective Lease or New Lease. Seller shall furnish Buyer with a written notice of the proposed action which shall contain information regarding the proposed action that Seller
believes is reasonably necessary to enable Buyer to make informed decisions with respect to the advisability of the proposed action. If Buyer fails to object in writing to any such proposed action within three (3) business days after receipt of the
aforementioned information, Buyer shall be deemed to have approved the proposed action. If any Lease requires that the landlord’s consent be given under the applicable circumstances (or not be unreasonably withheld), then Buyer shall be deemed
ipso facto to have approved such action. Any notice from Buyer rejecting the proposed action shall include a description of the reasons for Buyer’s rejection. 
  

 - 23 - 

 8.1.2 With respect to the building commonly known as Building No. 9, Seller shall have the right to enter
into any New Lease or amend any Pre-Effective Date Lease it deems advisable without Buyer’s prior consent so long as the terms and conditions of such New Lease or amendment to the Pre-Effective Date Lease fall within the leasing parameters set
forth on Exhibit K hereto (the “Leasing Parameters”); provided, however, that notwithstanding the foregoing, Seller may enter into a New Lease or amend any Pre-Effective Date Lease with terms and conditions that exceed the Leasing
Parameters without Buyer’s consent so long as Seller notifies Buyer in writing that Seller will be responsible for any amounts in excess of the Leasing Parameters. In such event; Buyer shall be responsible for any amounts up to the amounts
authorized pursuant to the Leasing Parameters, which shall be considered Reimbursable Leasing Expenses; however, Seller shall be responsible for any amounts in excess of the Leasing Parameters, which such excess shall not be considered Reimbursable
Leasing Expenses. 
  
 Section 8.2 Lease Expenses. At Closing,
Buyer shall reimburse Seller for any and all Reimbursable Lease Expenses to the extent that the same have been paid by Seller prior to Closing. In addition, at Closing, Buyer shall assume Seller’s obligations to pay, when due (whether on a
stated due date or by acceleration) any Reimbursable Lease Expenses unpaid as of the Closing, and Buyer hereby agrees to indemnify and hold Seller harmless froze and against any and all claims for such Reimbursable Lease Expenses which remain unpaid
for any reason at the time of Closing, which obligations of Buyer shall survive the Closing and shall not be merged therein. Each party shall make available to the other all records, bills, vouchers and other data in such party’s control
verifying Reimbursable Lease Expenses and the payment thereof. 
  
 Section 8.3 Lease Enforcement. Subject to the provisions of Section 8.1 above, prior to the Closing Date, Seller shall have the right, but not the obligation (except to the extent that Seller’s failure to act shall constitute a waiver
of such rights or remedies), to enforce the rights and remedies of the landlord under any Pre-Effective Date Lease or New Lease, by summary proceedings or otherwise (including, without limitation, the right to remove any tenant), and to apply all or
any portion of any Tenant Deposits then held by Seller toward any loss or damage incurred by Seller by reason of any defaults by Tenants, and the exercise of any such rights or remedies shall not affect the obligations of Buyer under this Agreement
in any manner or entitle Buyer to a reduction in, or credit or allowance against, the Purchase Price or give rise to any other claim on the part of Buyer; provided, however, that Seller shall not enforce an order granting Seller the right to evict a
tenant without the prior consent of Buyer, which consent shall not be unreasonably withheld, conditioned or delayed 
  
 Section 8.4 Certain Interim Operating Covenants. Seller covenants to Buyer that Seller will: from the Effective Date until Closing or earlier termination
of this Agreement, continue to operate, manage and maintain the Improvements in the ordinary course of Seller’s business and substantially in accordance with Seller’s present practice, subject to ordinary wear and tear and further subject
to Section 10.2; from the Effective Date until Closing or earlier termination of this Agreement, maintain fire and extended coverage insurance on the Property which is at least equivalent in all material respects to the insurance policies covering
the Development Land, the 
  

 - 24 - 

 Washington Land and the Improvements as of the Effective Date; and from and after the end of the Due Diligence Period
until Closing or earlier termination of this Agreement, not enter into any new contract for the provision of goods or services to or with respect to such the Property other than in the ordinary course of business, or renew, extend, modify or replace
any of the Contracts unless such contract is terminable as of the Closing Date without payment of any fees or penalty or unless Buyer consents thereto in writing, which approval shall not be unreasonably withheld, delayed or conditioned. In
addition, Seller shall terminate any leasing and/or management agreement with the Property Manager with respect to the Property effective as of the Closing Date and pay any and all costs and expenses of termination thereof. 
  
 ARTICLE 9 - CLOSING AND CONDITIONS 
  
 Section 9.1 Escrow Instructions. Upon execution of this Agreement, the
parties hereto shall deposit an executed counterpart of this Agreement with the Title Company, and this Agreement shall serve as escrow instructions to the Title Company as the escrow holder far consummation of the purchase and sale contemplated
hereby, Seller and Buyer agree to execute such reasonable additional and supplementary, escrow instructions as may be appropriate to enable the Title Company to comply with the terms of this Agreement; provided, however, that in the event of any
conflict between the provisions of this Agreement and any supplementary escrow instructions, the terms of this Agreement shall control. 
  
 Section 9.2 Closing. The closing hereunder (“Closing”) shall be held and delivery of all items to be made at the Closing under the terms of this
Agreement shall be made through escrow at Escrow Agent’s office on July 27, 2001, or such earlier date and time as Buyer and Seller may mutually agree upon in writing (the “Closing Date”). No later than 10:00 a.m. Eastern Time on the
Closing Date, Buyer shall deposit in escrow with the Escrow Agent the Purchase Price (subject to adjustments described in Section 9.5), together with all other costs and amounts to be paid by Buyer at the Closing pursuant to the terms of this
Agreement, by Federal Reserve wire transfer of immediately available funds to an account to be designated by the Escrow Agent. No later than the Closing Date, Buyer will cause the Escrow Agent to (i) pay to Seller by Federal Reserve wire transfer of
immediately available funds to an account designated by Seller, the Purchase Price (subject to adjustments described in Section 9.5), less any costs or other amounts to be paid by Seller at Closing pursuant to the terms of this Agreement, and (ii)
pay all appropriate payees the other costs and amounts to be paid by Buyer at Closing pursuant to the terms of this Agreement and Seller will direct the Escrow Agent to pay to the appropriate payees out of the proceeds of Closing payable to Seller,
all costs and amounts to be paid by Seller at Closing pursuant to the terms of this Agreement. It shall constitute a condition precedent to each party’s obligations to consummate the Closing hereunder that all of the material representations,
warranties, covenants, and agreements of the other party contained herein shall be true and correct and/or shall have been performed, as the case may be, in all material respects. Buyer acknowledges that if the Purchase Price is not paid to Seller
by 11:00 a m. on July 31, 2001, Seller will incur interest charges for the entire month of August. Accordingly, in the event that the Purchase Price (as adjusted per Section 9.5) has not been transferred to Seller prior to 10:00 a m on July 31,
2001, solely as a result of an action or omission of Buyer, Buyer shall pay to Seller, in addition to the Purchase Price, an amount equal to the amount of interest that Seller must pay on the mortgage that is secured in part by the Property, which
amount shall not exceed $250,000. 
  

 - 25 - 

 Section 9.3 Seller’s Closing Documents and Other Items. At or before Closing, Seller shall deposit
into escrow the following items: 
  
 9.3.1 A duly executed and
acknowledged Special (Limited) Warranty Deed in the form attached hereto as Exhibit D, from each of Washington and Development (collectively, the “Deed”); 
  
 9.3.2 Two (2) duly executed counterparts of a Bill of Sale in the form attached hereto as Exhibit E (the “Bill of
Sale”) from Washington; 
  
 9.3.3 Two (2) duly executed
counterparts of an Assignment and Assumption of Leases in the form attached hereto as Exhibit F (the “Assignment and Assumption of Leases”) from Washington; 
  
 9.3.4 Two (2) duly executed counterparts of an Assignment and Assumption of Contracts, Warranties and Guaranties, Licenses
and Permits and Other Intangible Property in the form attached hereto as Exhibit G (the “Assignment and Assumption of Contracts”) from Washington; 
  
 9.3.5 An affidavit pursuant to Section 1445(b)(2) of the Code, and on which Buyer is entitled to rely, stating that neither Washington nor Development is
not a “foreign person” within the meaning of Section 1445(f)(3) of the Code; 
  
 9.3.6 Notices to each Tenant of the Property, signed by Washington, that shall disclose that the Property has been sold to Buyer and that, after the Closing, all rents should be paid to Buyer or Buyer’s designee;

  
 9.3.7 Seller shall deliver to Buyer a set of keys to the
Property on the Closing Date (location of any of the items referred to in this subsection at the Property on the Closing Date shall be deemed to be delivery to Buyer); 
  
 9.3.8 If applicable, duly completed and signed real estate transfer tax declarations; 
  
 9.3.9 Such other documents as may be reasonably required by the Title Company
or as may be agreed upon by Seller and Buyer to consummate the purchase of the Property as contemplated by this Agreement; 
  
 9.3.10 If applicable, with respect to any security deposits which are letters of credit, Seller shall, if the same are assignable, deliver to Buyer at the
Closing such letters of credit, execute and deliver such other instruments as the issuers of such letters of credit shall reasonably require, and cooperate with Buyer to change the named beneficiary under such letters of credit to Buyer, so long as
Seller does not incur any additional liability or expense in connection therewith; 
  
 9.3.11 Two (2) duly executed counterparts of the Closing Statement; 
  
 9.3.12 A 1099 information statement; 
  

 - 26 - 

 9.3.13 An owner’s title affidavit; 
  
 9.3.14 Documentation to establish to the Title Company’s reasonable satisfaction the due authority of Seller’s
sale of the Property and Seller’s delivery of the documents required to be delivered by Seller pursuant to this Agreement; and 
  
 9.3.15 The originals of all Tenant estoppel certificates to the extent not previously delivered to Buyer. 
  
 Section 9.4 Buyer’s Closing Documents and Other Items. At or before
Closing, Buyer shall deposit into escrow the following items: 
  
 9.4.1 The balance of the Purchase Price and such additional funds as are necessary to close this transaction; 
  
 9.4.2 Two (2) duly executed counterparts of the Bill of Sale; 
  
 9.4.3 Two (2) duly executed counterparts of the Assignment and Assumption of Leases; 
  
 9.4.4 Two (2) duly executed counterparts of the Assignment and Assumption of Contracts; 
  
 9.4.5 If applicable, duly completed and signed real estate transfer tax
declarations; 
  
 9.4.6 Such other documents as may be reasonably
required by the Title Company or as may be agreed upon by Seller and Buyer to consummate the purchase of the Property as contemplated by this Agreement; and 
  
 9.4.7 Two (2) duly executed counterparts of the Closing Statement. 
  
 Section 9.5 Prorations and Closing Costs. 
  
 9.5.1 (1) Seller and Buyer agree to adjust, as of 11:59 p.m. on the day immediately preceding the Closing Date (the
“Proration Time”), the following (collectively, the “Proration Items”): real estate and personal property taxes and assessments (subject to the terms of Section 9.5.1(b) below), utility bills (except as hereinafter provided),
collected Rents (subject to the terms of Section 9.5.1(b) below) and Operating Expenses (subject to the terms of Section 9.5.1(c) below) payable by the owner of the Property. Seller will be charged and credited for the amounts of all of the
Proration Items relating to the period up to and including the Proration Time, and Buyer will be charged and credited for all of the Proration Items relating to the period after the Proration Time. Such preliminary estimated Closing prorations shall
be set forth on a preliminary closing statement to be prepared by Seller and submitted to Buyer for Buyer’s approval prior to the Closing Date (the “Closing Statement”). The Closing Statement, once agreed upon, shall be signed by
Buyer and Seller and delivered to the Escrow Agent for purposes of making the preliminary proration adjustment at Closing subject to the final cash settlement provided for below. The preliminary proration shall be paid at Closing by Buyer to Seller
(if the 
  

 - 27 - 

 preliminary prorations result in a net credit to Seller) or by Seller to Buyer (if the preliminary prorations result in a
net credit to Buyer) by increasing or reducing the cash to be delivered by Buyer in payment of the Purchase Price at the Closing. If the actual amounts of the Proration Items are not known as of the Proration Time, the prorations will be made at
Closing on the basis of the best evidence then available; thereafter, when actual figures are received (not to exceed 120 days after closing), re-prorations will be made on the basis of the actual figures, and a final cash settlement will be made
between Seller and Buyer. No prorations will be made in relation to insurance premiums, and Seller’s insurance policies will not be assigned to Buyer. Final readings and final billings for utilities will be made if possible as of the Proration
Time, in which event no proration will be made at Closing with respect to utility bills. Seller will be entitled to all deposits presently in effect with the utility providers, and Buyer will be obligated to, make its own arrangements for deposits
with the utility providers. The provisions of this Section 9.5.1(a) will survive the Closing for a period of twelve (12) months. 
  
 (a) Buyer will receive a credit on the Closing Statement for the prorated amount (as of the Proration Time) of all Rent previously paid to or collected by
Seller and attributable to any period following the Proration Time. Rents are “Delinquent” when they were due prior to the Closing Date, and payment thereof has not been made on or before the Closing Date Delinquent Rents will not be
prorated. All sums collected by Buyer from and after Closing from each Tenant will be applied first to current amounts owed by such Tenant to Buyer and then to Delinquent Rent owed by such Tenant to Seller. Any sums due Seller will be promptly
remitted to Seller. Buyer shall not have an exclusive right to collect any sums due Seller from Tenants under the Leases and Seller hereby retains the right to pursue any Tenant under the Leases for any sums due Seller for periods attributable to
Seller’s ownership of the Property; provided, however, Seller (i) shall be required to notify Buyer in writing of Seller’s intention to commence or pursue any legal proceedings; (ii) shall only be permitted to commence or pursue legal
proceedings after the date which is three (3) months after Closing, and (iii) shall not be permitted to commence or pursue any legal proceedings against any Tenant seeking eviction of such Tenant or the termination of the underlying Lease. The
provisions of this Section 9.51(b) will survive the Closing for a period of twelve (12) months. 
  
 (b) Seller shall prepare a reconciliation as of the Closing Date of the amounts of all billings and charges for operating expenses and tax escalations
(collectively, “Operating Expenses”). If more amounts have been expended for Operating Expenses than have been collected from Tenants for Operating Expenses, Buyer shall pay such difference to Seller at Closing as an addition to the
Purchase Price. If more amounts have been collected from Tenants for Operating Expenses than have been expended for Operating Expenses, Seller will pay to Buyer at Closing, as a credit against the Purchase Price, such excess collected amount. Buyer
and Seller agree that such proration of Operating Expenses at Closing will fully relieve Seller from any responsibility to Tenants and Buyer for such matters. In this regard, Buyer will be solely responsible, from and after Closing, for (i)
collecting from Tenants the amount of any outstanding Operating Expenses for periods before and after the Closing and (ii) where appropriate, reimbursing Tenants for amounts attributable to Operating Expenses, as may be necessary based on annual
reconciliations for Operating Expenses. 
  
 (c) All ad valorem
real estate and personal property taxes with respect to the Property (to the extent not prorated in (c) above) shall be prorated as of the Proration Time on a cash basis for the calendar year in which the Closing occurs, regardless of the year for
which such taxes are assessed. 
  

 - 28 - 

 (d) Buyer shall receive a credit against Purchase Price at Closing for all Tenant Deposits then
outstanding under the Leases and for all Rent paid in advance (to the extent not prorated as set forth in (b) above). 
  
 (e) Buyer shall receive a credit against the Purchase Price at Closing for all payments due or owing under any Contracts for periods prior to the Closing
Date, which amounts shall be prorated as of the Proration Time. If Seller has paid any amounts under any Contracts for periods after the Proration Time, Buyer shall pay such amounts to Seller at Closing in addition to the Purchase Price. 

 
 (f) Seller shall receive a credit for any and all Reimbursable Lease
Expenses as set forth in Section 8.2 of this Agreement and for any and all Reimbursable Capital Expenses, to the extent that the same have been paid by Seller prior to Closing. Each party shall make available to the other all records, bills,
vouchers and other data in such party’s control verifying Reimbursable Capital Expenses and the payment thereof. 
  
 9.5.2 Seller shall pay (a) one-half of any and all state, county or local transfer or deed recordation taxes, (b) one-half of the Escrow Agent’s
escrow fee, and (c) any additional costs and charges customarily charged to sellers in accordance with common escrow practices in the county in which the Property is located, other than those costs and charges specifically required to be paid by
Buyer hereunder Buyer shall pay (a) one-half of any and all state, county or local transfer or deed recordation taxes, (b) one-half of the Escrow Agent’s escrow fee, (c) all of the costs associated with the issuance of the Title Commitment and
Title Policy, including the costs of any endorsements Buyer may require in accordance with Section 4.3, (d) the recording fees required in connection with any financing associated with the transfer of the Property to Buyer, and (e) any, additional
costs and charges customarily charged to buyers in accordance with common escrow practices in the county in which the Property is located, other than those costs and charges specifically required to be paid by Seller hereunder. In addition to the
foregoing, Buyer shall be responsible for any costs of updating the Survey of the Property or otherwise conforming the Survey to the requirements for issuance of the Title Policy or for any new survey that may be required for issuance of the Title
Policy. 
  
 Section 9.6 Broker. Buyer hereby represents and
warrants to Seller that it did not employ or use any broker or finder to arrange or bring about this transaction, and that there are no claims or rights for brokerage commissions or finder’s fees in connection with the transactions contemplated
by this Agreement, other than the commission (“Broker’s Commission”) required to be paid by Seller to Broker pursuant to a separate agreement between Seller and Broker. Seller hereby represents and warrants to Buyer that Seller has
not employed any broker’ with respect to this transaction, other than Broker, and Seller shall only pay the Broker’s Commission. If any person brings a claim for a commission or finder’s fee based upon any contact, dealings, or
communication with Buyer in connection with the transactions contemplated by this Agreement, other than Broker, then Buyer shall defend Seller from such claim, and shall indemnify Seller and hold Seller harmless from any and all costs, damages,
claims, liabilities, or expenses (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by Seller 
  

 - 29 - 

 with respect to the claim. If any person brings a claim for a commission or finder’s fee based upon any contact,
dealings, or communication with Seller in connection with the transactions contemplated by this Agreement, then Seller shall defend Buyer from such claim, and shall indemnify Buyer and hold Buyer harmless from any and all costs, damages, claims,
liabilities, or expenses (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by Buyer with respect to the claim. The provisions of this Section 9.6 shall survive the Closing or, if the purchase and sale is not
consummated, any termination of this Agreement and shall not be subject to the twelve month limitation set forth in Section 6.3. 
  
 Section 9.7 Expenses. Except as provided in Sections 9.5 and 9.6, each party hereto shall pay its own expenses incurred in connection with this Agreement
and the transactions contemplated hereby, including, without limitation, in the case of Buyer, all third-party engineering and environmental review costs and all other Due Diligence costs. 
  
 ARTICLE 10 - MISCELLANEOUS 
  
 Section 10.1 Amendment and Modification. Subject to applicable law, this
Agreement may be amended, modified, or supplemented only by a written agreement signed by Buyer and Seller. 
  
 Section 10.2 Risk of Loss and Insurance Proceeds. 
  
 10.2.1 Minor Loss. Buyer shall be bound to purchase the Property for the full Purchase Price as required by the terms hereof, without regard to the
occurrence or effect of any damage to the Property or destruction of any improvements thereon or condemnation of any portion of the Property, provided that: (a) the cost to repair any such damage or destruction, or the diminution in the value of the
remaining Property as a result of a partial condemnation, equals $4,650,000 or less, and (b) upon the Closing, there shall be a credit against the Purchase Price due hereunder equal to the amount of any insurance proceeds or condemnation awards
collected by Seller as a result of any such damage or destruction or condemnation, plus the amount of any insurance deductible, less any sums expended by Seller toward the restoration or repair of the Property or in collecting such insurance
proceeds or condemnation awards. If the proceeds or awards have not been collected as of the Closing, then such proceeds or awards shall be assigned to Buyer, except to the extent needed to reimburse Seller for sums expended prior to the Closing to
repair or restore the Property or to collect any such proceeds or awards. 
  
 10.2.2 Major Loss. If the amount of the damage or destruction or condemnation as specified above exceeds $4,650,000, then Buyer may at its option, to be exercised by written notice to Seller within ten (10) business
days of Seller’s notice of the occurrence of the damage or destruction or the commencement of condemnation proceedings, terminate this Agreement. Buyer’s failure to elect to terminate this Agreement within said ten business day period
shall be deemed an election by Buyer to consummate this purchase and sale transaction. If Buyer elects to terminate this Agreement within such ten business day period, the Deposit shall be returned to Buyer and neither party shall have any further
rights or obligations hereunder except as provided in Sections 3.4, 3.5, 3.6, 9.6 and 10.11. If Buyer elects or is deemed to have elected to proceed with the purchase, then upon the Closing, there shall be a credit against the Purchase Price due
hereunder equal to the amount of any insurance proceeds or condemnation awards collected by 
  

 - 30 - 

 Seller as a result of any such damage or destruction or condemnation, plus the amount of any insurance deductible, less
any sums expended by Seller toward the restoration or repair of the Property or in collecting such insurance proceeds or condemnation awards. If the proceeds or awards have not been collected as of the Closing, then such proceeds or awards shall be
assigned to Buyer, except to the extent needed to reimburse Seller for sums expended prior to the Closing to repair or restore the Property or to collect any such proceeds or awards. 
  
 Section 10.3 Notices. All notices required or permitted hereunder shall be in writing and shall be served on the parties at
the following address: 
  

			
	 If to Seller:
	  	 ASP Washington. L.L C,
 ASP Washington Development,
L.L C.,
 c/o Westbrook Real Estate Partners, L.L.C.
 13155 Noel
Road
 Suite 2300
 Dallas, Texas 75240
 Attn: Mr. Scott R Fitzgerald
 Facsimile: (972) 934-8333

		
	 With Copies to:
	  	 Westbrook Real Estate Partners. L.L.C.
 13155 Noel
Road
 Suite 2300
 Dallas, Texas 75240
 Attn: Patrick K. Fox, Esq.
 Facsimile: (972) 934-8333

		
	 and to:
	  	 Terrabrook
 3030 LBJ Freeway, Suite 1500
 Dallas, Texas 75234
 Attn. Andrew S. Doughtie
 Facsimile: (972) 443-6131

		
	 and to:
	  	 Jones, Day, Reavis & Pogue
 77 West Wacker
Drive
 Chicago, Illinois 60601
 Attn: Robert C, Lee.
Esq.
 Facsimile: (312) 782-8585

		
	 If to Buyer:
	  	 The Cohen Companies, LLC
 6500 Rock Spring Drive,
Suite 302
 Bethesda, Maryland 20817
 Attn: Ronald J.
Cohen
 Facsimile: (301) 530-1582

  

 - 31 - 

			
	 with Copies to:
	  	 Powell, Goldstein, Frazer & Murphy LLP
 1001
Pennsylvania Avenue, N.W.
 Suite 600 South
 Washington, D.C.
20004-2505
 Attn: Michael Sanders, Esq.
 Facsimile: (202)
624-7222

		
	 If to Escrow Agent:
	  	 New Enterprise Title Group, Inc.
 9891 Broken Land
Parkway
 Woodmere Building II, Suite 104
 Columbia, MD
21046
 Attn: Donald Needle, President
 Facsimile: (410)
381-7692

  
 Any such notices may be sent by (a)
certified mail, return receipt requested, in which case notice shall be deemed delivered five (5) business days after deposit, postage prepaid in the U. S. mail, (b) a nationally recognized overnight courier, in which case notice shall be deemed
delivered one (1) business day after deposit for next business day delivery with such courier, or (c) facsimile transmission, in which case notice shall be deemed delivered upon electronic verification that transmission to recipient was completed.
The above addresses and facsimile numbers may be changed by written notice to the other party; provided that no notice of a change of address or facsimile number shall be effective until actual receipt of such notice. Copies of notices are for
informational purposes only, and a failure to give or receive copies of any notice shall not be deemed a failure to give notice. 
  
 Section 10.4 Assignment. Buyer and Seller shall not have the right to assign this Agreement, without the prior written consent of the other party.
Notwithstanding the foregoing, Buyer and Seller may each assign, upon written notice to the non-assigning party (a) their interests herein to an Affiliate of such assigning party and (b) their rights (but not obligations) herein to any party which
is not an Affiliate for the purposes of effectuating an exchange of properties under Section 10.31 of the Code, provided that any such assignment does not relieve the assigning party of its obligations hereunder. This Agreement will be binding upon
and inure to the benefit of Seller and Buyer and their respective successors and permitted assigns, and no other party will be conferred any rights by virtue of this Agreement or be entitled to enforce any of the provisions hereof. Whenever a
reference is made in this Agreement to Seller or Buyer, such reference will include the successors and permitted assigns of such party under this Agreement. 
  
 Section 10.5 Governing Law and Consent to Jurisdiction. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
MARYLAND, WITHOUT REGARD TO ANY OTHTRWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS. ANY ACTION ARISING OUT OF THIS AGREEMENT MUST BE COMMENCED BY BUYER OR SELLER IN THE STATE COURTS OF THE STATE OF MARYLAND OR IN U.S. FEDERAL COURT FOR THE
DISTRICT OF MARYLAND AND EACH PARTY HEREBY CONSENTS TO THE JURISDICTION OF THE ABOVE COURTS IN ANY SUCH ACTION AND TO THE LAYING OF VENUE IN THE STATE OF MARYLAND. ANY PROCESS IN ANY SUCH 
  

 - 32 - 

 ACTION SHALL BE DULY SERVED IF MAILED BY REGISTERED MAIL, POSTAGE PREPAID, TO THE PARTIES AT THEIR RESPECTIVE ADDRESS
DESCRIBED IN SECTION 10.3 HEREOF. 
  
 Section 10.6 Counterparts.
This Agreement may be executed in two or more fully or partially executed counterparts, each of which will be deemed an original binding the signer thereof against the other signing parties, but all counterparts together will constitute one and the
same instrument. 
  
 Section 10.7 Entire Agreement. This Agreement
and any other document to be furnished pursuant to the provisions hereof embody the entire agreement and understanding of the parties hereto as to the subject matter contained herein. There are no restrictions, promises, representations, warranties,
covenants, or undertakings other than those expressly set forth or referred to in such documents. This Agreement and such documents supersede all prior agreements and understandings among the parties with respect to the subject matter hereof.

  
 Section 10.8 Severability. Any term or provision of this
Agreement that is invalid or unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this
Agreement, or affecting the validity or enforceability of any of the terms or provisions of this Agreement. 
  
 Section 10.9 Attorney Fees. If any action is brought by any party to this Agreement to enforce or interpret its terms or provisions, the prevailing Party
will be entitled to reasonable attorney fees and costs incurred in connection with such action prior to and at trial and on any appeal therefrom. 
  
 Section 10.10 Payment of Fees and Expenses. Each party to this Agreement will be responsible for, and will pay, all of its own fees and expenses,
including those of its counsel and accountants, incurred in the negotiation, preparation, and consummation of this Agreement and the transaction contemplated hereunder. 
  
 Section 10.11 Confidential Information. The parties acknowledge that the transaction described herein is of a confidential
nature and shall not be disclosed except to Permitted Outside Parties or as required by law. No party shall make any public disclosure of the specific terms of this Agreement, except as required by law (including SEC regulations and NYSE
requirements). In connection with the negotiation of this Agreement and the preparation for the consummation of the transactions contemplated hereby, each party acknowledges that it will have access to confidential information relating to the other
party. Each party shall treat such information as confidential, preserve the confidentiality thereof, and not duplicate or use such information, except to Permitted Outside Parties in connection with the transactions contemplated hereby. In the
event of the termination of this Agreement for any reason whatsoever, Buyer shall return to Seller, all documents, work papers, engineering and environmental studies and reports and all other materials (including all copies thereof obtained from
Seller in connection with the transactions contemplated hereby), and each party shall use its best efforts, including instructing its employees and others who have had access to such information, to keep confidential and not to use any such
information. Except as required by applicable law, neither party shall issue any 
  

 - 33 - 

 press release or make any statement to the media without the other party’s consent, which consent shall not be
unreasonably withheld. The provisions of this Section 10.11 shall survive the Closing or, if the purchase and sale is not consummated, any termination of this Agreement and shall not be subject to the twelve (12)-month limitation set forth in
Section 6.3. 
  
 Section 10.12 No Joint Venture. Nothing set forth
in this Agreement shall be construed to create a joint venture between Buyer and Seller. 
  
 Section 10.13 Waiver of Jury Trial. Each party to this Agreement hereby expressly waives any right to trial by jury of any claim, demand, action or cause of action (each, an “Action”) (a) arising out of this
Agreement, including any present or future amendment thereof or (b) in any way connected with or related or incidental to the dealings of the parties or any of them with respect to this Agreement (as hereafter amended) or any other instrument,
document or agreement executed or delivered in connection herewith, or the transactions related hereto or thereto, in each case whether such Action is now existing or hereafter arising, and whether sounding in contract or tort or otherwise and
regardless of which party asserts such Action; and each party hereby agrees and consents that any such Action shall be decided by court trial without a jury, and that any party to this Agreement may file an original counterpart or a copy of this
Section 10.13 with any court as written evidence of the consent of the parties to the waiver of any right they might otherwise have to trial by jury. 
  
 Section 10.14 Limited Liability. Neither the members, managers, employees or agents of Seller, nor the shareholders, officers, directors, employees or
agents of any of them shad be liable under this Agreement and all parties hereto shall look solely to the assets of Seller for the payment of any claim or the performance of any obligation by Seller. 
  
 Section 10.15 Time of Essence. Time is of the essence of this Agreement.

  
 Section 10.16 No Waiver. No waiver of any of the provisions of
this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver, nor shall a waiver in any instance constitute a waiver in any subsequent instance. No
waiver shall be binding unless executed in writing by the party making the waiver. 
  
 [Signature Page Follows] 
  

 - 34 - 

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

					
	 SELLER:
	 	ASP WASHINGTON, L.L.C.
	 	 	a Delaware limited liability company
			
	 	 	By:	 	 /s/ Scott R. Fitzgerald

	 	 	 	 	Name: Scott R. Fitzgerald
	 	 	 	 	Title: Vice-President
		
	 	 	ASP WASHINGTON DEVELOPMENT, L.L.C.
	 	 	a Delaware limited liability company
			
	 	 	By:	 	 /s/ Scott R. Fitzgerald

	 	 	 	 	Name: Scott R. Fitzgerald
	 	 	 	 	Title: Vice-President
		
	 BUYER:
	 	THE COHEN COMPANIES, LLC,
	 	 	a Maryland limited liability company
			
	 	 	By:	 	 /s/ Ronald J. Cohen

	 	 	 	 	Name: Ronald J. Cohen
	 	 	 	 	Title: Co-Manager

  

	ESCROW	AGENT: 

  
 The Escrow Agent is executing this Agreement to evidence its agreement to hold the Deposit and act as escrow agent in accordance with the terms and conditions of this Agreement. 
  

							
	 	 	 NEW ENTERPRISE TITLE GROUP, INC.

				
	 	 	 	 	By:	 	 /s/ Donald Needle

	 	 	 	 	 	 	 Name: Donald Needle

	 	 	 	 	 	 	 Title: President

  

 - 35 -Exhibit 10.2

 Exhibit 10.2 
  
 MEMBERSHIP INTEREST PURCHASE AGREEMENT 
  
 by and among 
 KGH
Corporation, 
  
 Victoria Place Apartments, Ltd. 
  
 and 
 Osprey Capital, Inc. 
  
 (“Sellers”), 
  
 P.A.C.
Land Development Corporation 
  
 (“PAC”), 
  
 and 
  
 Bresler & Reiner, Inc (“Buyer”) 
  
 May 6, 2003 

 Table of Contents 
  

					
	 Description

	  	Page

	 Article 1
	  	 
	 Recitals; Sale; Price; Definitions
	  	3
	     1.1
	  	 Recitals
	  	3
	     1.2
	  	 Purchase Price and Deposit
	  	3
	     1.3
	  	 Definitions
	  	4
		
	 Article 2
	  	 
	 Investigation; Title
	  	10
	     2.1
	  	 Due Diligence Deliveries by Sellers
	  	10
	     2.2
	  	 Buyer's Inspection
	  	11
	     2.3
	  	 Title, Survey, Environmental Report, and Related Searches
	  	12
	     2.4
	  	 Cooperation
	  	15
		
	 Article 3
	  	 
	 Separate Representations and Warranties of KGH
	  	15
	     3.1
	  	 Capacity and Authority
	  	15
	     3.2
	  	 Execution and Delivery; Binding Effect
	  	16
	     3.3
	  	 Organization
	  	16
	     3.4
	  	 Ownership of KGH Membership Interest
	  	16
	     3.5
	  	 Notice
	  	16
	     3.6
	  	 Shareholders; Incumbency
	  	16
		
	 Article 4
	  	 
	 Separate Representations and Warranties of Osprey
	  	16
	     4.1
	  	 Osprey Capacity and Authority
	  	16
	     4.2
	  	 Execution and Delivery; Binding Effect
	  	17
	     4.3
	  	 Organization
	  	17
	     4.4
	  	 Ownership of Osprey Membership Interest
	  	17
	     4.5
	  	 Notice
	  	18
		
	 Article 5
	  	 
	 Separate Representations and Warranties of Victoria
	  	18
	     5.1
	  	 Victoria Capacity and Authority
	  	18
	     5.2
	  	 Execution and Delivery; Binding Effect
	  	18
	     5.3
	  	 Organization
	  	18
	     5.4
	  	 Ownership of Victoria Membership Interest
	  	19
	     5.5
	  	 Notice
	  	19
	     5.6
	  	 Partners
	  	19
		
	 Article 6
	  	 
	 Representations Concerning Company and Property
	  	19
	     6.1
	  	 Organization
	  	19
	     6.2
	  	 Capitalization
	  	19
	     6.3
	  	 Purpose, Subsidiaries and Other Equity Investments
	  	20
	     6.4
	  	 The Property; Other Properties; Inventory; Cash; Accounts Receivable
	  	20

  

 (i) 

					
	     6.5
	  	 Financial Statements
	  	21
	     6.6
	  	 Absence of Certain Changes
	  	21
	     6.7
	  	 No Liabilities or Obligations
	  	22
	     6.8
	  	 Compliance with Laws; No Defaults
	  	23
	     6.9
	  	 Rental and Income Standards
	  	23
	     6.10
	  	 Litigation
	  	23
	     6.11
	  	 Contracts and Bank Accounts
	  	23
	     6.12
	  	 Other Contracts
	  	24
	     6.13
	  	 No Employees
	  	24
	     6.14
	  	 Permits and Access
	  	24
	     6.15
	  	 Environmental
	  	24
	     6.16
	  	 Insurance Coverage
	  	26
	     6.17
	  	 Condemnation; Improvements; Special Assessments
	  	26
	     6.18
	  	 Tenants
	  	26
	     6.19
	  	 Defects
	  	27
	     6.20
	  	 Soil Conditions
	  	27
	     6.21
	  	 No Contributions or Dedications
	  	27
	     6.22
	  	 Property Regulations
	  	28
	     6.23
	  	 Certificates of Occupancy
	  	28
	     6.24
	  	 InterCompany Arrangements
	  	28
	     6.25
	  	 Tax Matters
	  	28
	     6.26
	  	 Employee Benefit Plans
	  	29
	     6.27
	  	 Securities Laws
	  	29
	     6.28
	  	 Americans With Disabilities Act Compliance
	  	29
	     6.29
	  	 Solvency
	  	29
	     6.30
	  	 Licenses; Regulatory Approvals; Utilities
	  	29
	     6.31
	  	 Intellectual Property
	  	30
	     6.32
	  	 Brokerage
	  	30
	     6.33
	  	 Other Information
	  	30
	     6.34
	  	 Continuing Representations
	  	30
		
	 Article 6A
	  	 
	 Separate Representations and Warranties of PAC
	  	31
	     6A.1
	  	 PAC Capacity and Authority
	  	31
	     6A.2
	  	 Execution and Delivery; Binding Effect
	  	31
	     6A.3
	  	 Organization
	  	32
	     6A.4
	  	 Financial Statements
	  	32
	     6A.5
	  	 Shareholders; Incumbency
	  	32
		
	 Article 6B
	  	 
	 As Is, Where Is Transaction, Release
	  	32
	     6B.1
	  	 As Is, Where Is
	  	32
	     6B.2
	  	 Release
	  	32
		
	 Article 7
	  	 
	 Indemnity
	  	32
	     7.1
	  	 Indemnification
	  	32
	     7.2
	  	 Limitations on KGH and PAC Indemnity
	  	33

  

 (ii) 

					
	     7.3
	  	 Limitation on Seller Indemnity
	  	33
	     7.4
	  	 Notice
	  	34
	     7.5
	  	 Indemnification Procedure
	  	34
	     7.6
	  	 Buyer Indemnity
	  	36
		
	 Article 8
	  	 
	 KGH's and Sellers' Covenants
	  	36
	     8.1
	  	 Affirmative Covenants of KGH
	  	36
	     8.2
	  	 Affirmative Covenants of Sellers
	  	38
	     8.3
	  	 Right of First Offer
	  	39
	     8.4
	  	 Negative Covenants
	  	39
		
	 Article 9
	  	 
	 Buyer's Representations and Warranties,
	  	40
	     9.1
	  	 Buyer Capacity and Authority Relative to Agreement
	  	40
	     9.2
	  	 Execution and Delivery; Binding Effect
	  	40
	     9.3
	  	 Organization
	  	40
		
	 Article 10
	  	 
	 Conditions Precedent
	  	41
	     10.1
	  	 Buyer's Closing Conditions
	  	41
	     10.2
	  	 Commercially Reasonable Efforts
	  	42
	     10.3
	  	 Buyer's Termination Option
	  	42
		
	 Article 11
	  	 
	 Closing
	  	42
	     11.1
	  	 Closing and Closing Date
	  	42
		
	 Article 12
	  	 
	 Closing Obligations of Parties
	  	43
	     12.1
	  	 Sellers' and PAC's Closing Obligations
	  	43
	     12.2
	  	 Buyer's Closing Obligations
	  	44
	     12.3
	  	 Further Assurances, Assistance and Cooperation
	  	44
		
	 Article 13
	  	 
	 Closing Adjustments and Payments
	  	45
	     13.1
	  	 Post-Closing Adjustments and Payments
	  	45
	     13.2
	  	 Holdbacks
	  	46
	     13.3
	  	 Income and Expense Items
	  	46
	     13.4
	  	 Buyer Credits
	  	47
	     13.5
	  	 Costs
	  	47
		
	 Article 14
	  	 
	 Casualty and Condemnation
	  	47
	     14.1
	  	 Risk of Loss
	  	47
	     14.2
	  	 Condemnation
	  	48
	     14.3
	  	 Binding Effect
	  	48
		
	 Article 15
	  	 
	 Brokerage
	  	48
	     15.1
	  	 Broker
	  	48

  

 (iii) 

					
	 Article 16
	  	 
	 Defaults
	  	48
	     16.1
	  	 Sellers' Default
	  	48
	     16.2
	  	 Buyer's Default
	  	49
	     16.3
	  	 EXCLUSIVE REMEDY FOR BUYER'S DEFAULT IN FAILING TO CLOSE
	  	49
		
	 Article 17
	  	 
	 Miscellaneous
	  	49
	     17.1
	  	 Survival
	  	49
	     17.2
	  	 Business Days and Time Periods
	  	49
	     17.3
	  	 Notices
	  	49
	     17.4
	  	 Escrow Provisions
	  	51
	     17.5
	  	 Entire Agreement
	  	51
	     17.6
	  	 Governing Law
	  	51
	     17.7
	  	 Successors and Assigns
	  	51
	     17.8
	  	 Waiver
	  	51
	     17.9
	  	 Counterparts
	  	52
	     17.10
	  	 Attorneys' Fees, Costs
	  	52
	     17.11
	  	 Headings; Word Meaning
	  	52
	     17.12
	  	 Time of the Essence
	  	52
	     17.13
	  	 Construction of Agreement
	  	52
	     17.14
	  	 Severability
	  	52
	     17.15
	  	 No Implied Agreement
	  	53
	     17.16
	  	 Radon Gas Disclosure
	  	53
	     17.17
	  	 Exchange
	  	53
	     17.18
	  	 Facsimile
	  	53
	     17.19
	  	 Restatement of Operating Agreement and Articles of Organization
	  	53

  

 (iv) 

 List of Disclosure Schedules 
  

			
	 B.(1)(a)
	  	 Land

	 B.(1)(b)
	  	 Improvements

	 B.(3)
	  	 FF&E

	 B.(5)
	  	 Contracts

	 B.(6)
	  	 Permits

	 B.(7)
	  	 Trademarks

	 3.6
	  	 KGH Shareholders

	 4.1(d)
	  	 Osprey Encumbrances

	 5.1(d)
	  	 Victoria Encumbrances

	 5.6
	  	 Partners

	 6.4(e)
	  	 Company Encumbrances

	 6.7
	  	 Company Liabilities

	 6.9
	  	 Rental and Income Standards of Company

	 6.10
	  	 Litigation, Arbitration, and Administrative Proceedings

	 6.11
	  	 Bank Accounts

	 6.16
	  	 Insurance Policies and Fidelity Bonds

	 6.18(a)
	  	 Contract Rent Roll

	 6.18(b)
	  	 Leases

	 6.18(e)
	  	 Commissions

	 6.21
	  	 Contributions

	 6.24
	  	 Intercompany Arrangements

	 6.25
	  	 Tax Matters

	 6.30
	  	 Licenses

	 6.31 (a)
	  	 Intellectual Property

	 6.31(b)
	  	 Intellectual Property Liabilities

	 6.31(c)
	  	 Confidentiality Agreements

	 6.32
	  	 Brokerage Agreements

	 6A.1(d)
	  	 PAC encumbrances

	 6A.5
	  	 PAC Shareholders; Incumbency

	 8.3
	  	 Current Projects

	 13.1(b)
	  	 Bonds and Deposits

  
 List of Exhibits

  

			
	 A
	  	 Disclosure Index

	 B
	  	 Due Diligence Index

	 C
	  	 Form of Assignment of Membership Interest (KGH)

	 D
	  	 Form of Assignment of Membership Interest (Osprey)

	 E
	  	 Form of Assignment of Membership Interest (Victoria)

	 F
	  	 Company Balance Sheet

	 G
	  	 Company Budget

	 H
	  	 Form of Leases

	 I
	  	 Escrow Agreements

  
  

 (v) 

 Membership Interest Purchase Agreement 
  
 This Membership Interest Purchase Agreement (“Agreement”) as further defined in Section 1.3) is entered into this
10th day of July, 2003 by and among KGH Corporation, a Florida corporation (“KGH”), Victoria Place Apartments, Ltd., a Florida limited partnership (“Victoria”), Osprey Capital Inc., a Delaware corporation (“Osprey”)
(KGH, Victoria, and Osprey are sometimes referenced separately as a “Seller” and collectively as “Sellers”), P.A.C. Land Development Corporation, a Florida corporation (“PAC”), and Bresler & Reiner, Inc., a Delaware
corporation (“Buyer”). 
  
 Recitals: 
  
 A. Sellers constitute all of the members of Victoria Place Apartments, LLC, a Florida
limited liability company (“Company”). KGH owns a one percent (1%) membership interest in Company (“KGH Membership, Interest”), Osprey owns a fifty percent (50%) membership interest in Company (“Osprey Membership
Interest”), and Victoria owns a forty nine percent (49%) membership interest in Company (“Victoria Membership Interest”). KGH is the sole manager of Company. The KGH Membership Interest, the Osprey Membership Interest, and the
Victoria Membership Interest collectively are the “Membership Interests” and constitute all of the membership interests in Company. PAC is an Affiliate of the KGH and Victoria. PAC will benefit from the transaction described herein. The
representations, warranties and obligations of PAC in this Agreement have materially induced Buyer to enter into this Agreement, and without such representations and warranties, Buyer would not have entered into this Agreement. 
  
 B. Company is the owner of certain assets related to its development, ownership, operation,
leasing, and marketing of a three hundred and sixty-four (364) unit luxury apartment unit property known as Victoria Place Apartments, which includes the following property (“Property”): 
  
 (1) Land. Title in fee simple of that certain land located in Orange County,
Florida described on Disclosure Schedule B.(l)(a) (“Land”), together with all buildings, structures, and other facilities located on the Land, including one-bedroom, two-bedroom and three-bedroom apartment units in the number and having
the characteristics shown on Disclosure Schedule B.(l)(b), and a clubhouse, other facilities, and parking as more completely described on Disclosure Schedule B.(1) (collectively, “Improvements”). 
  
 (2) Easements. All of Company’s right, title, and interest in and to all
easements, rights of way, gores of land, streets, ways, alleys, passages, sewer rights, waters, water courses, water rights and powers, and all estates, rights, titles, interests, privileges, liberties, tenements, hereditaments, and appurtenances
whatsoever, in any way belonging, relating, or appertaining to the Land including all necessary easements for utility and storm water drainage purposes and such other easements as may be necessary for the Operation of the Property (collectively,
“Easements”). The Land, the Improvements, and the Easements collectively are the “Real Property.” 
  
 (3) Furniture, Fixtures, and Equipment. All of Company’s right, title, and interest in and to furniture, furnishings, fittings, equipment, machinery,
appliances, office equipment, 

 printers, software, rent roll databases, supplies, computers, computer programs, hardware, vehicles, laundry equipment,
recreational equipment, pool equipment, fitness center equipment, maintenance, cleaning, and repair equipment, supplies, parts, tools, garage door openers for garages located on the Land, and other articles of personal property now owned by Company
and located in or, on, or attached to, or used or intended to be used in connection with the operation of the Property (collectively, “FF&E”), being the FF&E listed and described on Disclosure Schedule B.(3). The information to be
included on Disclosure Schedule B.(3) lists the FF&E by item description, make, model, serial number (if applicable), location, and whether the FF&E is leased or owned. 
  
 (4) Leases. Except as otherwise provided in this Agreement, all of Company’s right, title, and interest in those
leases, subleases, other occupancy agreements, security deposit agreements, and all amendments thereto, whether oral or written, together with prepaid rents and security or other deposits related thereto (if applicable), whether or not of record,
which provide for the use or occupancy of space or facilities relating to all or a portion of the Property (including apartment units, garages, and commercial space) that are listed on the Contract Rent Roll (defined in Section 1.3) (collectively,
“Leases”). 
  
 (5) Contracts. Except as otherwise
provided in this Agreement and excluding this Agreement and, as applicable, the Ancillary Agreements (defined in section 1.3), those contracts, agreements, contract rights (including warranties and guaranties), license agreements, and all amendments
thereto, to which Company is a party or which are used in connection with the operation of the Property, and any and all other agreements to which Company is a party, or which affects all or a portion of the Property or Company, including all
written contracts and agreements relating to the reservation, availability or provision of water, sewer, storm water drainage, electricity, natural gas, telephone, cable television, satellite television, or other utility capacity or services
affecting or benefiting all or a portion of the Property, and all other written contracts, leases, injunctions, orders, decrees, rulings, directives, agreement, or understandings (and written summaries of all oral understandings or agreements)
burdening or benefiting all or a portion of the Property (including Easements), granting rights with respect to the ownership or use of all or a portion of the Property, all insurance policies insuring Company, all or any portion of the Property
since the formation of Company, and other agreements, all of which agreements are listed on Disclosure Schedule B.(5), but excluding the Leases (collectively, “Contracts”). 
  
 (6) Permits. All of Company’s right, title, and interest in all licenses, permits, consents, authorizations, approvals,
development rights, certificates of occupancy, development agreements, governmental notices, and other certificates of any Governmental Authority (defined in Section 1.3) used in the operation of all or a portion of the Property, required to be
issued by the appropriate Governmental Authority for the development of the Property, the Use, or the construction, occupancy, and use of the Improvements, or otherwise concerning all or a portion of the Property, Company, or any Seller, all of
which are listed on Disclosure Schedule B.(6) attached to this Agreement (collectively, “Permits”). 
  
 (7) Trademarks. All of Company’s right, title, and interest, if any, in all trademarks, tradenames, names, service marks, symbols, and franchises
used in the operation of the Property, which Company has the right to use and which are transferable, all of which are listed on Disclosure Schedule B. (7) (collectively, “Trademarks”). 

 (8) Plan, Reports, and Studies. All of Company’s right, title, and interest in all blueprints, plans
and specifications, architectural drawings or renderings, surveys, engineering reports and studies, inspection results, architect’s certificates, environmental reports and studies, architectural studies, soil borings, wetlands and endangered
species reports, title insurance policies, title instruments, surveys, plats, drainage, infrastructure, engineering, and other plans, appraisals, and other data concerning all or a portion of the Property (collectively, “Plans Reports, and
Studies”). 
  
 (9) Interests. Except as otherwise provided in
this Agreement, all of Company’s right, title, and interest in and to all other tangible or intangible personal property relating to Property, including: (a) all tenant security deposits, other deposits, prepaid rents, documents, contract
rights, commitments (excluding Company’s loan commitments or loan documents pursuant to which Company is a borrower, obligor, or guarantor, if any), construction contracts, guarantees, architectural agreements; (b) phone and fax numbers, all
customer lists and all information related to marketing operations, instruments, notes, and chattel paper; (c) all records and files relating to or used in the operation of the Property; (d) all proceeds arising from or by virtue of any taking or
condemnation of all or any part of the Property; and (e) all proceeds of each policy of insurance relating to all or any part of the Property (collectively, “Interests”). 
  
 C. Sellers desire to sell to Buyer, and Buyer desires to purchase from Sellers, all of their interests in and to Company, in accordance with
this Agreement. 
  
 In consideration of the mutual covenants, promises, and
undertakings of the parties in this Agreement, the receipt and sufficiency of which is acknowledged, the parties agree as follows: 
  
 Article 1 
 Recitals; Sale; Price;
Definitions. 
  
 1.1 Recitals. KGH, on behalf of Company, and PAC jointly and
severally represent and warrant that the above recitals are true and correct. The above recitals are incorporated in this Agreement by reference. 
  
 1.2 Purchase Price and Deposit. On the terms and subject to the conditions of this Agreement, Sellers agree to sell, transfer, and convey to Buyer and Buyer, in reliance
on the representations, warranties, covenants, and agreements of Sellers in this Agreement, agrees to purchase from Sellers all of the Membership Interests, for the price and on the terms stated in this Agreement. 
  
 (a) The purchase price (“Purchase Price”) for all of the Membership
Interests is thirty-nine million, five hundred thousand and no/l00 dollars ($39,500,000.00), to be paid as follows: 
  
 (1) A deposit of two hundred and fifty thousand and no/100 dollars ($250.000.00) on or before the second business day after the Effective Date
(“Initial Deposit”), to be deposited in escrow with the Escrow Agent pursuant to Section 17.4 and any additional instructions signed by Sellers, Buyer, and Escrow Agent, and to be applied as directed pursuant to Section 1.1(c); 

 (2) A deposit of two hundred and fifty thousand and no/100 dollars ($250,000.00) within two (2) business
days after the expiration of the Inspection Period (defined in Section 1.3) (“Additional Deposit”), if Buyer has not previously elected to terminate this Agreement, to be deposited in escrow with the Escrow Agent pursuant to Section 17.4
and any additional instructions signed by Sellers, Buyer, and Escrow Agent and to be applied as directed by Buyer pursuant to Section 1.1(c). The Initial Deposit, the Additional Deposit (if and when delivered by Buyer) and the Extension Deposit (if
and when delivered by Buyer), collectively are the “Deposit;” and, 
  
 (3) An amount equal to three hundred thousand dollars ($300,000.00) (the “Tax Escrow”) shall be paid by Sellers from the Purchase Price into escrow with the Escrow Agent pursuant to Section 13.2(a).

  
 (4) An amount equal to one million, five hundred thousand
dollars ($1,500,000.00) (the “Indemnification Escrow”) shall be paid by Sellers from the Purchase Price into escrow with the Escrow Agent pursuant to Section 13.2(b). 
  
 (5) The Purchase Price (less the Deposit), in cash or by wire transfer in Federal funds at Closing to the account of Escrow
Agent, subject to closing adjustments and prorations as set forth in this Agreement. 
  
 (b) The Deposit shall be non-refundable except on the occurrence of one or more of the following events: (i) prior to expiration of the Inspection Period, Buyer determines in its sole discretion that the Property (or
the Membership Interests) is or are unsatisfactory and terminates this Agreement as provided in Section 2.2(d); (ii) Buyer terminates this Agreement following Sellers’ failure to correct a Title Objection as provided in Section 2.3; (iii) Buyer
terminates this Agreement due to Buyer’s inability to obtain financing as provided in Section 10.3; (iv) as otherwise set forth in this Agreement; (v) Sellers, or any one of them, default or fail to perform any of their respective obligations
under this Agreement which have not been waived by Buyer and which have not been cured within any applicable cure period. 
  
 (c) At Closing, Company will satisfy and discharge all Liens (defined in Section 1.3) on all or a portion of all of the following: (i) the Membership
Interests, and (ii) the Property. 
  
 (d) At Closing, Buyer may
elect in writing to apply the Deposit to the Purchase Price or to have that amount released to Buyer on tender of the full Purchase Price. 
  
 1.3 Definitions. Unless the context otherwise indicates, the terms set forth below are defined as follows: 
  
 “ADA” has the meaning set forth in Section 6.31. 
  
 “Additional Deposit” has the meaning set forth in Section 1.2. 
  
 “Affiliate” means with respect to any Person, any Person related by
blood or marriage to or directly or indirectly controlling, controlled by, or under common control with such other Person. 

 “Agreement” means this Membership Interest Purchase Agreement and all schedules and exhibits
attached to this Agreement, as the same may be amended and modified as set forth in this Agreement. 
  
 “Ancillary Agreements” means any and all agreements, assignments, certificates or other contracts, other than this Agreement, entered into or
provided to another party pursuant to this Agreement, between Buyer and one (1) or more Seller, or certificates by one (1) or more party to this Agreement affecting one (1) or more of the other parties, including documents delivered at Closing.

  
 “Base Tax Amount” has the meaning set forth in
Section 13.2. 
  
 “Buyer” has the meaning set forth in
the Preamble. 
  
 “Closing” means the transaction
contemplated by this Agreement. 
  
 “Closing Date” has
the meaning set forth in Section 11.1. 
  
 “Closing Balance
Sheets” means the balance sheets of Company dated as of the close of business on the last day of the month immediately preceding the Closing, prepared in accordance with GAAP consistently applied (except as otherwise indicated in such
statements and except that such statements do not contain footnote disclosures required by GAAP and do not reflect normal year-end adjustments). 
  
 “Closing Rent Roll” has the meaning set forth in 12.1(c). 
  
 “Code” has the meaning set forth in Section 12.1(g). 
  
 “Company” has the meaning set forth in the Preamble. 
  
 “Company Balance Sheet” has the meaning set forth in Section 6.6. 
  
 “Company Balance Sheet Date” has the meaning set forth in Section
6.6. 
  
 “Company Business” shall mean the development,
ownership and operation of the Real Property. 
  
 “Consolidated Membership Interest” has the meaning set forth in Section 17.18. 
  
 “Contract Rent Roll” has the meaning set forth in Section 6.20. 
  
 “Contracts” has the meaning set forth in Recital B. 
  
 “Deposit” has the meaning set forth in Section 1.2. 
  
 “Disclosure Documents” means those documents described or otherwise referenced on any Disclosure Schedule.

 “Disclosure Index” means that index, to be attached hereto as Exhibit A not less than ten (10)
days prior to Closing, listing all of the Disclosure Documents. 
  
 “Disclosure Schedule” shall mean those schedules attached hereto as Disclosure Schedules. 
  
 “Due Diligence Documents” shall mean all documents responsive to the Due Diligence Request and listed on the Due Diligence Index. 
  
 “Due Diligence Index” shall mean that index, to be attached hereto
as Exhibit B not less than ten (10) days prior to Closing, of all documents responsive to the Due Diligence Request. 
  
 “Due Diligence Request” shall mean such due diligence request delivered to Sellers’ counsel on March 21, 2003, and all supplemental
requests thereto. 
  
 “Easements” has the meaning set
forth in Recital B. 
  
 “Effective Date” means the date
on which all parties shall have signed this Agreement. The latest of the parties to sign shall confirm that date by notice to all other parties. 
  
 “Environmental Laws” has the meaning set forth in Section 6.17. 
  
 “Escrow Agent” means Holland & Knight, LLP. 
  
 “Escrow Amount” shall mean the amount of the Tax Escrow plus the amount of the Indemnification Escrow. 

 
 “Extension Deposit” shall have the meaning set forth in Section
11.1. 
  
 “FF&E” has the meaning set forth in
Recital B. 
  
 “GAAP” means generally accepted
accounting principles as in effect in the United States on the Effective Date and consistently applied and maintained throughout the period indicated. 
  
 “Governmental Authorities” means the municipal, county, state, and federal governments, agencies, authorities, courts, and officers having,
jurisdiction over all or a portion of the Property. 
  
 “Hazardous Substance” means any toxic, regulated, caustic, or otherwise hazardous substance, including petroleum, its derivatives, by-products, or other hydrocarbons, whether or not regulated under Environmental Laws. 

 
 “Improvements” has the meaning set forth in Recital B.

  
 “Indemnification Escrow” has the meaning set forth
in Section 1.2(a)(4). 
  
 “Indemnified Parties” has the
meaning set forth in Section 2.2. 
  
 “Initial Deposit”
has the meaning set forth in Section 1.2. 

 “Inspection Period” has the meaning set forth in Section 2.2(d). 
  
 “Interests” has the meaning set forth in Recital B. 
  
 “KGH” has the meaning set forth in the Preamble. 
  
 “KGH Membership Interest” has the meaning set forth in Recital A.

  
 “Land” has the meaning set forth in Recital B.

  
 “Leases” has the meaning set forth in Recital B.

  
 “Lender” shall mean the financial institution
providing mortgage financing to Buyer in connection with the purchase of the Membership Interests or the Property. 
  
 “Liens” means all mortgages, liens, pledges, claims, security interests, conditional sales contracts, or encumbrances of any nature, including
all interest accrued on those debts and any prepayment or other penalties or other charges of the holders of the Liens, other than taxes and assessments not then due and payable. 
  
 “Management and Leasing Contract” has the meaning set forth in Section 12.1(i). 
  
 “Material Adverse Chance” means a material adverse change, or
series of related changes, in the business, assets, condition (financial or otherwise), results of operations or prospects of Company which has resulted or could reasonably be expected to result in any obligation or liability to, or diminution in
the value of, Company in an amount of at least $100,000 other than those which are the result of: (a) the transactions contemplated by this Agreement, or (b) general economic, financial, industry or market conditions affecting the apartment rental
industry in general (and not solely the Company in particular). The cancellation or termination of any Lease, in the ordinary course of business, shall not constitute a Material Adverse Change. 
  
 “Membership Interests” has the meaning set forth in Recital A.

  
 “Operation of the Property” means operation of the
Property as a luxury apartment complex. 
  
 “Osprey” has
the meaning set forth in the Preamble. 
  
 “Osprey Membership
Interest” has the meaning set forth in Recital A. 
  
 “PAC” means PAC Land Development Corporation, a Florida Corporation. 
  
 “Permits” has the meaning set forth in Recital B. 
  
 “Permitted Encumbrances” has the meaning set forth in Section 2.3(a). 

 “Person” means an individual, a corporation, a partnership, a limited liability company, an
association, a trust, or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
  
 “Plans, Retorts, and Studies” has the meaning set forth in Recital B. 
  
 “Property” has the meaning set forth in Recital B. 
  
 “Property Manager” has the meaning set forth in Section 12.1(i). 
  
 “Purchase Price” has the meaning set forth in Section 1.2.

  
 “Qualified Lease” means any Lease with a tenant of
the Property for a residential unit in the Property with a term of (a) no less than twelve (12) months with no more than a one and one half (11⁄2) month rent concession either prorated over twelve (12) months or given at the beginning of the
Lease, or (b) thirteen (13) months with a rent concession by Company of no more than one thousand five hundred dollars ($1,500.00), for which the tenant thereunder otherwise meets the rental and income standards of Company as set forth in Disclosure
Schedule 6.99, and for which no more than one thousand five hundred dollars ($1,500.00) of rent has been paid in advance by the tenant or from rent concession thereunder; provided, however, that (i) up to twenty percent (20%) of the residential
units on the Real Property which otherwise comply with the foregoing requirements may be leased for a term of at least seven (7) months and constitute Qualified Leases, and (ii) up to five percent (5%) of all leases that are designated as Qualified
Leases which otherwise comply with the foregoing requirements may be guaranteed by guarantors who independently meet the rental and income standards set forth on Disclosure Schedule 6.9. 
  
 “Real Property” has the meaning set forth in Recital B. 
  
 “Rent” has the meaning set forth in Section 13.1(a). 
  
 “Security Deposits” means any and all security deposits paid to
Company in accordance with the terms of the Leases. 
  
 “Seller” and “Sellers” have the meaning set forth in the Preamble. 
  
 “Sellers’ Agent” means Thomas L. Cavanaugh whom Sellers hereby appoint as their agent to perform certain functions as set forth in this
Agreement. 
  
 “Survey” has the meaning set forth in
Section 2.3(b). 
  
 “Survey Defect” means any matter
disclosed by the Survey with respect to title to the Real Property to which Buyer, in Buyer’s sole and absolute discretion, may object, provided the same is not caused by Buyer or its agents or employees. 
  
 “Survival Period” shall mean a period of two (2) years following
the Closing Date, except as such period may be longer as set forth in Section 13.2(a) or Section 6.25. 

 “Tax or Taxes” means (i) any net income, alternative, or add-on minimum tax, gross income,
gross receipts, sales, use, ad valorem, value added, franchise, profits, license, withholding on amounts paid to or by Company, any member, officer or principal of any Seller, any officer, manager, member, partner, or shareholder of any member of
Company, or an Affiliate of Company, payroll, employment, excise, severance, stamp, occupation, premium, property, environmental or windfall profit tax, custom, duty or other tax, governmental fee or other like assessment or charge of any kind
whatsoever, together with any interest or any penalty, addition to tax or additional amount imposed by any Governmental Authority (“Taxing Authority”) responsible for the imposition of any such tax (domestic or foreign), (ii) liability of
Sellers, Company, or an Affiliate of Company for the payment of any amounts of the type described in (i) as a result of being a member of an affiliated, consolidated, combined, or unitary group, and (iii) liability of a Seller, Company, or an
Affiliate of Company for the payment of any amounts of the type described in (i) as a result of any express or implied obligation to indemnify any other Person. 
  

“Tax Escrow” has the meaning given in Section l.2(a)(3). 
  
 “Tax Return” has the meaning given in Section 6.27. 
  
 “Taxing Authority” has the meaning set forth in the definition of “Tax.” 
  
 “Termination Notice” means a written notice of exercise of a
Termination Option given from one party to the other in accordance with this Agreement. 
  
 “Termination Option” means an option set forth in this Agreement by a party to terminate this Agreement to be exercised by giving a Termination Notice to the other party and Escrow Agent on and subject to
the conditions set forth with respect to the specific Termination Option, pursuant to which this Agreement shall terminate, Sellers shall cause Escrow Agent immediately to return the Deposit to Buyer (unless otherwise provided in this Agreement with
respect to that Termination Option), and neither party shall have any obligations of any nature to the other under or by reason of this Agreement, except as otherwise provided in this Agreement. 
  
 “Title Agent” means Holland & Knight, LLP, as issuing agent for
Title Company. 
  
 “Title Commitment” has the meaning
set forth in Section 2.3(a). 
  
 “Title Company” means
Fidelity National Title Insurance Company or such other nationally recognized title insurance company selected by Buyer and approved by Lender. 
  
 “Title Defect” means any matter with respect to title to the Real Property to which Buyer, in Buyer’s sole and absolute discretion, may
object, provided the same is not caused by Buyer or its agents or employees. 
  
 “Title Evidence” means the Title Commitment and other information delivered pursuant to Section 2.3(a), and the Survey delivered by Sellers pursuant to Section 2.3(b). 

 “Title Objection” means Buyer’s request for action in respect of any Title Defect or
Survey Defect. All Liens shown on the Title Evidence automatically shall be deemed to be Title Objections unless such Liens are created by Buyer or its agents or employees. 
  
 “Title Policy” has the meaning set forth in Section 2.3(a). 
  
 “Trademarks” has the meaning set forth in Recital B. 
  
 “Use” means a 364-unit multi-family luxury apartment complex,
together with the related garages and parking areas and other site improvements on the Real Property. 
  
 “Victoria” has the meaning set forth in the Preamble. 
  

“Victoria Membership Interest” has the meaning set forth in Recital A. 
  
 Article 2 
 Investigation; Title. 
  
 2.1 Due Diligence Deliveries by Sellers.
Within three (3) days after the Effective Date, Sellers shall, at Sellers’ sole cost and expense, deliver to Buyer, the documents and information set forth in the Due Diligence Request. Buyer shall have the right to submit to Seller supplements
to the Due Diligence request from time to time. Within three (3) business days after submission of such supplemental requests, Sellers shall, at Sellers’ sole cost and expense, deliver to Buyer, the documents and information set forth in such
supplemental requests. Sellers represent and warrant to Buyer that the Due Diligence Documents constitute all of the material records and documents (or copies of such records and documents) within the control or custody of Sellers, or which Sellers
can obtain through reasonable efforts, concerning the Property, it being understood that Sellers’ failure to list on Exhibit B items as Due Diligence Documents or Sellers’ failure to deliver or make available to Buyer the documents and
information set forth in the Due Diligence Request, shall constitute Sellers’, KGH’s and PAC’s representation and warranty to Buyer that such item does not exist or is not within the custody or control of Sellers, KGH or PAC, and
neither Sellers, KGH nor PAC can obtain it though reasonable efforts. 
  
 Sellers,
KGH and PAC shall supplement each delivery as required by this Section during the term of this Agreement if additional items arise (or such records or documents delivered are amended or modified) or come to the attention of Sellers, KGH or PAC and
are in Sellers’, KGH’s or PAC’s custody or control; provided, however, that if such information is not within Sellers’ custody or control, Sellers, KGH and PAC shall advise Buyer in writing of the existence of such information
and provide a written summary of such information. If Sellers, KGH or PAC do not timely provide or make available to Buyer all information required under this Section in accordance with this Section, then the expiration date of the Inspection Period
and, at Buyer’s option, the Closing, may be extended by one (1) day for each day the provision of information is delayed, for a total period not to exceed thirty (30) days, and if Buyer is not satisfied with the information required under this
Section, and in accordance with this Section, as provided by Sellers, KGH or PAC at such time, Buyer may terminate this Agreement prior to the expiration of the Inspection Period as may be extended pursuant to this section, and except as otherwise
provided in this Agreement, all rights and obligations of the parties under this Agreement shall be null and void, and Sellers, KGB and PAC shall ensure that Escrow Agent immediately returns the Deposit to Buyer. 

 2.2 Buyer’s Inspection. 
  
 (a) Subject to this Agreement, Buyer and its agents and representatives shall be permitted to make a complete physical inspection of the Property,
including soil testing, testing for hazardous materials, an engineer’s inspection of the Improvements, and to examine the Due Diligence Documents and the Disclosure Documents. Buyer shall also have the right to interview those Persons
responsible for the management, operation and leasing of the Property, third party contractors and suppliers. If any such Persons interviewed by Buyer are employees of PAC, or Company’s property manager, Sellers’ Agent shall be invited to
such interview, which shall be scheduled during normal business hours. If Buyer’s due diligence reveals any condition of the Property that in Buyer’s judgment requires disclosure to any Governmental Authority, Buyer immediately shall
notify Sellers thereof. In such event, Sellers, and not Buyer or anyone acting on Buyer’s behalf, shall make such disclosures as Sellers deem appropriate. Notwithstanding the foregoing, Buyer may disclose matters concerning the Property to a
Governmental Authority if, (a) in the written opinion of Buyer’s outside legal counsel, Buyer is required by law to make such disclosure, and (b) Buyer gives Sellers not less than ten (10) days prior written notice of the proposed disclosure,
together with a copy of such legal opinion. 
  
 (b) Buyer hereby
agrees to indemnify, protect, defend, and hold Sellers and Company (collectively, “Indemnified Parties”) harmless from and against any and all liabilities, demands, actions, causes of action, suits, claims, losses, damages, costs, and
expenses (including reasonable attorneys’ fees, court costs, and litigation expenses, including those incurred in all bankruptcy and probate proceedings) suffered or incurred by any of the Indemnified Parties which was caused by any entry onto
the Property or any activities conducted thereon by Buyer (including entry on or activities of any of Buyer’s employees, consultants, contractors, or other agents), including construction liens, damage to the Property, or injury to Persons or
property resulting from such activities. Any contractor retained by Buyer and entering the Property, at its own expense, shall purchase and maintain commercial general liability insurance, including contractual liability coverage to cover the
indemnity described above, insuring against injuries or damages to persons or property sustained in connection with such contractor’s activities. Such insurance shall (i) be primary to any insurance carried independently by the Company or
Sellers; (ii) be maintained with a company or companies reasonably satisfactory to Sellers’ Agent and licensed to do business in Florida; and (iii) have a minimum combined single limit of $1,000,000 per occurrence. Prior to commencing any
investigations on the Property, Buyer shall submit to Sellers’ Agent a certificate of insurance evidencing such coverage. If the Property is disturbed or altered in any way as a result of such activities, Buyer promptly shall restore the
Property to its condition existing prior to the commencement of such activities which disturb or alter the Property, Buyer shall, promptly on receiving notice of any lien placed on the Property by reason of Buyer’s or Buyer’s
representatives’ tests or inspections, cause the lien to be bonded off at Buyer’s expense. This Section 2.2(b) shall survive the termination of this Agreement and Closing. 
  
 (c) Buyer shall obtain the consent of Sellers’ Agent prior to performing any invasive testing at the Property, which
consent shall not be unreasonably withheld. Buyer shall repair any damage to the Property caused by such testing and shall provide Sellers with copies of the test results if requested by Sellers. 

 (d) Buyer shall have a period commencing with the Effective Date and expiring thirty (30) days thereafter
(except as may be extended as otherwise provided in this Agreement) (“Inspection Period”) in which to inspect and examine the Property and the Due Diligence Documents and the Disclosure Documents, and determine whether the Property and the
Membership Interests are satisfactory to Buyer in Buyer’s sole discretion. If Buyer elects to terminate this Agreement prior to the termination of the Inspection Period, Buyer shall deliver written notice to Sellers of its election to exercise
a Termination Option and terminate this Agreement prior to the expiration of the Inspection Period, at which point Sellers shall cause Escrow Agent immediately to refund the Deposit to Buyer, and the parties shall be relieved from any and all
obligations under this Agreement (except as otherwise provided in this Agreement). 
  
 2.3 Title, Survey, Environmental Report, and Related Searches. 
  
 (a) Title Commitment and Title Policy. Within fifteen (15) days after the Effective Date, Sellers shall, at their sole cost (including all costs for title searches, title examination, closing fees, and the like), obtain and deliver to Buyer
a commitment for title insurance (“Title Commitment”), issued on Title Company by Title Agent, committing to issue to Buyer, at Sellers’ sole cost, a 1992 Revision ALTA Owner’s Title Insurance Policy (10-17-92) for the Real
Property in the amount of the Purchase Price on the Closing Date (“Title Policy”), and, at Buyers expense, a mortgagee title insurance policy with respect to the Real Property in an amount not to exceed the Purchase Price, provided that
the cost for same shall not exceed twenty-five dollars ($25), which is the minimum promulgated rate for simultaneous issue policies. Fee simple marketable title to the Real Property as reflected by the Title Commitment and Title Policy shall be
subject to ad valorem real estate and tangible personal property taxes for the current year, encumbrances, exceptions, and matters of record only as such are acceptable to Buyer and Lender in the sole discretion of each (“Permitted
Encumbrances”). The Title Commitment shall include true, correct, and complete legible copies of all documents referenced in the Title Commitment and shall agree to insure all easements benefiting the Land, and to issue at Closing the Form 9.2
endorsement, the survey endorsement, the environmental endorsement, and the contiguity endorsement, if applicable, all at Sellers’ cost and expense, and, at Buyer’s cost and expense, such endorsements as may be requested by Lender,
provided that the cost for same shall not exceed the minimum promulgated rate for such endorsements. The Title Commitment shall provide that all “standard exceptions” (including standard exceptions for taxes and assessments not shown in
the public records, claims of unrecorded easements, parties other than owner in possession, mechanic’s liens, and matters disclosed on an accurate survey, but excluding current real estate taxes not yet due and payable) shall be deleted from
the Title Policy on receipt of documents necessary to do so. Sellers shall ensure that Title Agent delivers to Buyer and Lender an insured closing protection letter from Title Company to Buyer and Lender up to the amount of the Purchase Price within
the time set forth above for the delivery of the Title Commitment. 
  
 (b) Survey. Sellers shall, at their sole cost, obtain an updated as-built survey of the Real Property (“Survey”) from a duly licensed and qualified land surveyor satisfactory to Buyer, Lender, and the Title Company in accordance
with their requirements, and furnish ten (10) certified copies of the same to Buyer, within twenty (20) days after the Effective Date. The 

 Survey shall be certified to Buyer, Title Agent, Title Company, and Lender and its successors and assigns. The Survey
shall be dated no later than ninety (90) days prior to Closing, and must show the location, dimensions, and foundation perimeters of all Improvements, and indicate the routes of ingress and egress for public access to the Land, all walks, drives,
recorded or visible easements and rights-of-way on the Land, parking spaces and current zoning, and show that there are no encroachments, improvements, projections, or easements (recorded or unrecorded) on the property lines. The Survey shall
certify the acreage of the Land and shall indicate whether the Land is located within any flood hazard area. The Survey must be prepared in accordance with the most recent standards set forth by ALTA/ACSM and those of any and all surveyors’
bureaus or associations of the jurisdiction in which the Land is located as well as any and all applicable laws. The surveyor’s certificate placed on the Survey shall include a statement that the Survey locates any and all such items set forth
as exceptions in the Title Policy as Buyer, Lender, or Title Company may require, shall include a legal description of the Land and a count of the parking spaces, and otherwise satisfy Buyer’s, Lender’s, and Title Company’s
requirements. 
  
 (c) Title Objections. If the Title Commitment or
Survey discloses any Title Defect or Survey Defect, Buyer may give a Title Objection within fifteen (15) days after the later of the Effective Date or Buyer’s receipt of the Title Commitment or the Survey Buyer shall be deemed to have waived
its right to object to any exceptions, defects, state of facts, or other matters disclosed by the Title Evidence but not objected to in accordance with the preceding sentence. Sellers shall cure all Title Defects and shall satisfy all requirements
set forth on Schedule B-I of the Title Commitment other than those pertaining to Buyer, and shall deliver the documents relating to title or title insurance matters required by Section 10.1(c). Sellers shall notify Buyer within ten (10) days after
receipt of Buyer’s notice whether Sellers will be able to satisfy the Title Objections If Sellers notify Buyer that they are not willing or able to satisfy any Title Objection, or fail to give Buyer any notice regarding whether Sellers will
satisfy the Title Objection within such ten (10) day period, then Buyer may exercise a Termination Option on account of that matter within ten (10) days after the receipt of Sellers’ notice, or if Sellers fail to give notice, within ten (10)
days after the expiration of Sellers’ ten (10) day notice period. If Buyer fails to exercise a Termination Option in accordance with the preceding sentence, Buyer will have waived its Title Objection and right to terminate this Agreement as a
result thereof. If Sellers notify Buyer within ten (10) days after receipt of Buyer’s Title Objection that Sellers will attempt to satisfy the Title Objection, but fail to do so prior to the Closing Date despite the use of commercially
reasonable efforts, then Buyer shall have the right to extend the Closing Date by up to ninety (90) days for Sellers to continue their efforts, failing which Buyer’s sole remedy shall be to exercise a Termination Option as of the Closing Date
unless Sellers have willfully breached their duty to act in a commercially reasonable manner, in which event Buyer shall have the right of specific performance. 
  

(d) Additional Title Evidence and Title Objections. Sellers shall submit all documents intended to be recorded or filed in the public records after the
effective date of the Title Commitment to Buyer for approval prior to execution and recording, provided if Buyer does not respond within ten (10) business days after delivery of a proposed document, Buyer shall be deemed to have approved such
document. If any subsequent title examination or additional survey, including the Survey, shall disclose any exceptions, defects, state of facts, or other matter other than those described in the preceding sentence, then Buyer may deliver a Title
Objection within ten (10) business days after receipt of such examination or survey, and the notice, cure, and termination provisions in Section 2.3(c) with respect to Title Defects disclosed by the initial Title Evidence shall apply with respect to
such subsequent Title Evidence. 

 (e) Environmental Report. Sellers shall, at their sole cost, provide to Buyer within twenty (20) days
after the Effective Date a Phase I environmental inspection report performed within such time period with respect to the Property by a duly qualified and licensed environmental inspector satisfactory to Buyer and Lender. The report shall certified
to Buyer and Lender and its successors or assigns. Such report shall confirm (to the extent relevant, in Buyer’s or Lender’s reasonable discretion): 
  

(1) The absence of Hazardous Substances on, under, or affecting all or a portion of the Property, except for commercially reasonable amounts thereof
commonly found at residential properties in the immediate vicinity of the Land, and that there are no known or suspected Hazardous Substances located at, used or stored on, or transported to or from the Land or in such proximity thereto as to create
a material risk of contamination, except for commercially reasonable amounts thereof commonly found at residential properties in the immediate vicinity of the Land; 
  
 (2) That the environmental inspector has obtained, reviewed, and included within its report a CERCLIS printout from the
Environmental Protection Agency, statements from the Environmental Protection Agency and other applicable Governmental Authorities, and such other information as Buyer or Lender reasonably may require; 
  
 (3) The absence of radon gas at the Real Property, or, if radon gas is found
to be present in the Real Property, that such presence is of a nature or magnitude so as to be fully in compliance with applicable standards under the Environmental Laws and all other applicable laws or standards; and 
  
 (4) The absence of friable asbestos within the Improvements, or elsewhere on
the Real Property or, if asbestos is found to be present in the Real Property, that such presence is of a nature or magnitude that is able to be removed by a licensed removal contractor for a guaranteed maximum sum satisfactory to Buyer and Lender.

  
 (f) UCC Searches. Sellers, at their sole cost, shall provide
to Buyer within fifteen (15) days after the Effective Date and then again within ten (10) days prior to the Closing, then-current searches, together with true, correct, complete, and legible copies of all documents revealed by such searches, of all
the Uniform Commercial Code Financing Statements filed with the Secretary of State (or other appropriate filing officer) of the State of Florida and any other state where each of Company’s and Sellers’ chief executive offices are located
which Sellers hereby represents to Buyer are located in Florida and New York. If such searches reveal claims or liens against Company, any Seller, or encumbering all or a portion of the Membership Interests or the Property, then it shall be a
condition precedent to Closing in favor of Buyer that such financing statements be terminated, released, and discharged at or prior to Closing. 
  
 (g) Tax, Judgment Lien, Bankruptcy and Litigation Searches. Sellers, at their sole cost, shall provide to Buyer within fifteen (15) days after the
Effective Date and then again within ten (10) days prior to the Closing, then-current searches, together with true, correct, 

 complete, and legible copies of all documents revealed by such searches, of all tax liens, judgment liens, bankruptcies
and pending litigation filed in Orange County, Florida, with the Secretary of State (or other appropriate fling officer) of the State of Florida, and with any other state and county where each of Company’s and Sellers’ chief executive
offices are located. If such searches reveal liens or claims against Company, any Seller, or encumbering all or a portion of the Membership Interests, or the Property, then it shall be a condition precedent to Closing in favor of Buyer that such
liens or claims be terminated, released, and discharged at or prior to Closing. 
  
 (h) Americans With Disabilities Act Compliance Report. Sellers shall, at their sole cost, provide to Buyer within twenty (20) days after the Effective Date a report of Company’s compliance with the Americans With
Disabilities Act. 
  
 2.4 Cooperation. Sellers shall cooperate with and assist
Buyer in the making of the foregoing investigations, but shall not be obligated to incur any expense in connection with the investigations, except as provided in this Agreement. 
  
 Article 3 
 Separate Representations and Warranties of KGH. 
  
 KGH represents
and warrants to Buyer the accuracy of the following statements as of the Effective Date and as of the Closing Date, as set forth in Section 6.34 hereof: 
  
 3.1 Capacity and Authority. KGH has full legal right and all requisite corporate power and authority to execute, deliver, and perform this Agreement and every Ancillary
Agreement to which it is a party. The execution, delivery, and performance by KGH of this Agreement and the Ancillary Agreements to which it is a party have been duly authorized by all requisite corporate action of KGH and will not: 
  
 (a) violate any law, regulation, injunction, decree, or order of any court
or Governmental Authority; 
  
 (b) conflict with the articles of
incorporation or by-laws of KGH or the articles of organization or operating agreement of Company or any other charter agreement of either KGH or Company; 
  
 (c) require any notice to, filing or registration with, or consent, license, approval, or authorization of, any Governmental Authority or other Person
other than Osprey or Victoria; or 
  
 (d) result in a breach or
default, the imposition of a penalty, the creation or attachment of a Lien on the KGH Membership Interest, a suspension, cancellation, modification, or termination (or create any right of suspension, cancellation, or termination), or the
acceleration of the maturity of any liability, obligation, or indebtedness of KGH under or pursuant to any order, decree, lease, contract, mortgage, indenture, judgment, promissory note, security agreement, or other agreement or instrument to which
KGH is a party or against which its assets are bound. 

 3.2 Execution and Delivery; Binding Effect. This Agreement has been duly and validly executed and delivered by KGH, and
KGB will have duly and validly executed each of the Ancillary Agreements to which it is a party before that Ancillary Agreement is delivered to the other parties to this Agreement at the Closing. This Agreement is, and (when executed and delivered
to the other, parties at the Closing) each Ancillary Agreement to which KGH is a party will be, valid, effective, and enforceable by the other parties to this Agreement against KGB in accordance with its terms. 
  
 3.3 Organization. Company is a limited liability company formed under the laws of the State
of Florida and has all requisite power and authority to own its property and to conduct its business, as now conducted. KGH is a corporation formed under the laws of the State of Florida and has all requisite power and authority to own its property
and to conduct its business, as now conducted. KGH is the duly elected Manager of Company. Osprey, Victoria, and KGH constitute all of the legal and beneficial owners and holders of all membership interests in Company. 
  
 3.4 Ownership of KGH Membership Interest. KGH has good and valid record and equitable title
to the KGH Membership Interest, free and clear of any Lien, contract for sale, option to purchase, right of first offer or refusal, or other restriction of any kind whatsoever, except for transfer restrictions imposed by state and federal securities
laws and its operating agreement. On its execution of the Assignment of Membership Interest in the form of Exhibit C, KGH will transfer to Buyer or its designee good and merchantable title to the KGH Membership Interest, free and clear of any Liens.
Other than as set forth in Company’s Operating Agreement, KGH is not a party to any right, option, warrant, agreement, or commitment providing for the acquisition or disposition of (a) any of its Membership Interest, (b) any securities
convertible into, or exchangeable for, any of its interest in Company, or (c) any right, option, or warrant to purchase any membership interests or other securities of Company. KGH possesses all voting power and rights attendant to the KGH
Membership Interest and is not party to any voting trust, proxy, or other agreement or understanding of any kind with respect to the voting of any interest in Company. 
  
 3.5 Notice. KGH has not received any notice from any Governmental Authority, or any authority in any foreign jurisdiction, with respect to
the use of the Property. 
  
 3.6 Shareholders; Incumbency. Disclosure Schedule 3.6
lists KGH’s shareholders (including names, addresses and number of shares owned), officers and directors. 
  
 Article 4 
 Separate Representations and Warranties of Osprey. 

 
 Osprey represents and warrants to Buyer the accuracy of the following statements as of the
Effective Date and as of the Closing Date, as set forth in Section 6.34 hereof: 
  
 4.1 Osprey Capacity and Authority. Osprey has full legal right and all requisite power and authority to execute, deliver, and perform this Agreement and every Ancillary Agreement to which it is a party. The execution, delivery, and
performance by Osprey of this Agreement and the Ancillary Agreements to which it is a party have been duly authorized by all requisite corporate action of Osprey and will not: 
  
 (a) violate any law, regulation, injunction, decree, or order of any court or Governmental Authority; 

 (b) conflict with the articles of incorporation or by-laws of Osprey or the articles of organization or
limited liability company agreement of Company or any other charter agreement of either Osprey or Company; 
  
 (c) require any notice to, filing or registration with, or consent, license, approval, or authorization of, any Governmental Authority or other Person
other than KGH or Victoria; or 
  
 (d) result in a breach or
default, the imposition of a penalty, the creation or attachment of a Lien on the Osprey Membership Interest, a suspension, cancellation, modification, or termination (or create any right of suspension, cancellation, or termination), or the
acceleration of the maturity of any liability, obligation, or indebtedness of Osprey under or pursuant to any order, decree, lease, contract, mortgage, indenture, judgment, promissory note, security agreement, or other agreement or instrument to
which Osprey is a party or against which its assets are bound other than as set forth on Disclosure Schedule 4.1(d). 
  
 4.2 Execution and Delivery; Binding Effect. This Agreement has been duly and validly executed and delivered by Osprey, and Osprey will have duly and validly executed each
of the Ancillary Agreements to which it is a party before that Ancillary Agreement is delivered to the other parties to this Agreement at the Closing. This Agreement is, and (when executed and delivered to the other parties at the Closing) each
Ancillary Agreement to which Osprey is a party will be, valid, effective, and enforceable by the other parties to this Agreement against Osprey in accordance with its terms. 
  
 4.3 Organization. Company is a limited liability company formed under the laws of the State of Florida and has all requisite power and
authority to own its property and to conduct its business, as now conducted. Osprey is a corporation formed under the laws of the State of Delaware and has all requisite power and authority to own its property and to conduct its business, as now
conducted. KGH is the duly elected Manager of Company and Osprey is one of the legal and beneficial owners and holders of the membership interests in Company. 
  

4.4 Ownership of Osprey Membership Interest. Osprey has good and valid record and equitable title to the Osprey Membership Interest, free and clear of any Lien,
contract for sale, option to purchase, right of first offer or refusal, or other restriction of any kind whatsoever, except for transfer restrictions imposed by state and federal securities laws and the Operating Agreement. On its execution of the
Assignment of Membership Interest in the form of Exhibit D, Osprey will transfer to Buyer or its designee good and merchantable title to the Osprey Membership Interest, free and clear of any Liens. Other than as set forth in Company’s Operating
Agreement, Osprey is not a party to any right, option, warrant, agreement, or commitment providing for the acquisition or disposition of (a) any of its Membership Interest, (b) any securities convertible into, or exchangeable for, any of its
interest in Company, or (c) any right, option, or warrant to purchase any membership interests or other securities of Company Osprey 

 possesses all voting power and rights attendant to the Osprey Membership Interest and is not party to any voting trust,
proxy, or other agreement or understanding of any kind with respect to the voting of any interest in Company. 
  
 4.5 Notice. Osprey has not received any notice from any Governmental Authority, or any authority in any foreign .jurisdiction, with respect to any violation or alleged violation of any law or regulation governing the
use of the Property. 
  
 Article 5 
 Separate Representations and Warranties of Victoria. 
  
 Victoria represents and warrants to Buyer the accuracy of the following statements as of the Effective Date and as of the Closing Date, as set forth in Section 5.34
hereof: 
  
 5.1 Victoria Capacity and Authority. Victoria has full legal right
and all requisite power and authority to execute, deliver, and perform this Agreement and every Ancillary Agreement to which it is a party. The execution, delivery, and performance by Victoria of this Agreement and the Ancillary Agreements to which
it is a party have been duly authorized by all requisite limited partnership action of Victoria and will not: 
  
 (a) violate any law, regulation, injunction, decree, or order of any court or Governmental Authority; 
  
 (b) conflict with the certificate of limited partnership or limited
partnership agreement of Victoria or the articles of organization or limited liability company agreement of Company or any other charter agreement of either Victoria or Company; 
  
 (c) require any notice to, filing or registration with, or consent, license, approval, or authorization of, any Governmental
Authority or other Person other than KGH or Osprey; or 
  
 (d)
result in a breach or default, the imposition of a penalty, the creation or attachment of a Lien on the Victoria Membership Interest, a suspension, cancellation, modification, or termination (or create any right of suspension, cancellation, or
termination), or the acceleration of the maturity of any liability, obligation, or indebtedness of Victoria under or pursuant to any order, decree, lease, contract, mortgage, indenture, judgment, promissory note, security agreement, or other
agreement or instrument to which Victoria is a party or against which its assets are bound other than as set forth on Disclosure Schedule 5.1(d). 
  
 5.2 Execution and Delivery; Binding Effect. This Agreement has been duly and validly executed and delivered by Victoria, and Victoria will have duly and validly executed
each of the Ancillary Agreements to which it is a party before that Ancillary Agreement is delivered to the other parties to this Agreement at the Closing. This Agreement is, and (when executed and delivered to the other parties at the Closing) each
Ancillary Agreement to which Victoria is a party will be, valid, effective, and enforceable by the other parties to this Agreement against Victoria in accordance with its terms. 
  
 5.3 Organization. Company is a limited liability company formed under the laws of the State of Florida and has all requisite power and
authority to own its property and to conduct its 

 business, as now conducted. Victoria is a limited partnership formed under the laws of the State of Florida and has all
requisite power and authority to own its property and to conduct its business, as now conducted. KGH is the duly elected Manager of Company. Osprey, Victoria, and KGH constitute all of the legal and beneficial owners and holders of all membership
interests in Company. 
  
 5.4 Ownership of Victoria Membership Interest. Victoria
has good and valid record and equitable title to the Victoria Membership Interest, free and clear of any Lien, contract for sale, option to purchase, right of first offer or refusal, or other restriction of any kind whatsoever, except for transfer
restrictions imposed by state and federal securities laws and the Operating Agreement. On its execution of the Assignment of Membership Interest in the form of Exhibit E, Victoria will transfer to Buyer or its designee good and merchantable title to
the Victoria Membership Interest, free and clear of any Liens. Other than as set forth in Company’s Operating Agreement, Victoria is not a party to any right, option, warrant, agreement, or commitment providing for the acquisition or
disposition of (a) any of its Membership Interest, (b) any securities convertible into, or exchangeable for, any of its interest in Company, or (c) any right, option, or warrant to purchase any membership interests or other securities of Company.
Victoria possesses all voting power and rights attendant to the Victoria Membership Interest and is not party to any voting trust, proxy, or other agreement or understanding of any kind with respect to the voting of any interest in Company.

  
 5.5 Notice. Victoria has not received any notice from any Governmental
Authority, or any authority in any foreign, jurisdiction, with respect to the use of the Property. 
  
 5.6 Partners. Disclosure Schedule 5.6 lists each partner of Victoria (including names, addresses, partnership interest and whether such partnership interest is general or limited). 
  
 Article 6 
 Representations Concerning Company and Property. 
  
 KGH, on behalf of Company, and PAC, jointly and severally, represent and warrant to, and agree and covenant with Buyer that: 
  
 6.1 Organization. Company is a Florida limited liability company duly organized and validly existing and in good standing under or by virtue of the laws of the state of
its creation, has duly authorized the execution and performance of this Agreement, and the execution and performance of this Agreement will not violate any term of its articles of organization, operating agreement, or any other agreement, judicial
decree, statute or regulation to which it is a party or by which it may be bound or affected. Company is not a party to or bound by any right, option, warrant, agreement, or commitment of any character providing for the acquisition or disposition
of, or that requires or authorizes the issuance of, any membership interests in Company or any securities convertible into membership interests in Company. 
  
 6.2 Capitalization. Sellers constitute all of the legal and beneficial owners and holders of all Membership Interests. The authorized Membership Interests consist solely
of (i) a 50% membership interest held by Osprey; (ii) a 49% membership interest held by Victoria; and (iii) a 1% membership interest held by KGH. Each such Membership Interest has been duly authorized 

 and validly issued and fully paid and non-assessable, none of such Membership Interests were issued in violation of any
preemptive or other right and all of such Membership Interests were issued in conformity with all applicable state and federal securities laws. The Membership Interests have the rights, preferences and privileges set forth in Company’s
operating agreement. There are no obligations of Company to issue, sell or transfer any membership interests, voting securities, or securities convertible into or exercisable or exchangeable for membership interests or voting securities of Company,
or obligating Company to grant, extend or enter into any such obligation or obligations of Company to issue or deliver or to repurchase. redeem, or otherwise acquire any securities of Company. 
  
 6.3 Purpose, Subsidiaries and Other Equity Investments. Company was formed to develop and own
the Property, and at no time has it owned any assets or operated in furtherance of any other purpose. Company has not sold or disposed of any assets outside of the ordinary course of business. Company does not own, directly or indirectly, any shares
of capital stock of any corporation or any equity investment in any partnership, limited liability company, association, or other business organization, and Company does not have any obligation to make any such investment. 
  
 6.4 The Property; Other Properties; Inventory; Cash; Accounts Receivable. 
  
 (a) Company has good and marketable title to, or in the case of leased
property has valid leasehold interests in, all property and assets (whether real or personal, tangible or intangible) that it purports to own, including those reflected on the applicable Company Balance Sheet or acquired after Company Balance Sheet
Date. None of such properties or assets is subject to any Liens, except Liens for taxes not yet due. 
  
 (b) To the best knowledge of KGH, the facilities, machinery, computers, furniture, office, and other equipment of Company that are used in its business
are in good operating condition and repair, subject only to the ordinary wear and tear of the business, and neither Company nor any property or asset owned or leased by Company is in violation of any applicable ordinance, regulation or building,
zoning, environmental, or other law in respect thereof. 
  
 (c)
Company has delivered to Buyer, or will deliver within ten (10) days of the Effective Date, all Disclosure Schedules and Disclosure Documents, all of which documents are true and complete copies of the originals thereof. The Disclosure Schedules are
true and complete in all material respects. 
  
 (d) Company has
delivered to Buyer, or will deliver within ten (10) days of the Effective Date, all Due Diligence Documents, all of which documents are true and complete copies of the originals thereof. Neither Company nor KGH has received any notice from any
Governmental Authority, or any authority in any foreign jurisdiction, with respect to the use of the Property. Each lease pursuant to which Company leases any personal property is in full force and effect and is valid and enforceable in accordance
with its terms. There is not under any such lease any default by Company or any other party thereto, or, to the best of Sellers’ knowledge with respect to parties other than Sellers, any event that with notice or lapse of time or both would
constitute such a default. 

 (e) Except as set forth in Disclosure Schedule 6.4(e), there is no easement, right-of-way agreement,
license, lease, sublease, occupancy agreement, or like instrument with respect to the Property other than the Leases or the Easements accepted by Buyer as Permitted Encumbrances, and Company owns or has the right, in accordance with enforceable
agreements, all of which have been provided to Buyer as Disclosure Documents in accordance with this Agreement, to use all property, assets, and rights that it currently uses and that are necessary for the operation of the business of Company.

  
 (f) The Rents due Company as reflected in the applicable
Company Balance Sheet and Closing Balance Sheet, to the extent uncollected on the Effective Date, and the Rents due reflected on the books of Company, and all Rents arising since the date of the Closing Balance Sheet, are: (i) valid and existing and
represent monies due; and (ii) subject to no refunds or other adjustments and to no defenses, rights of setoff, assignments, restrictions, Liens, or conditions enforceable by third parties on or affecting any thereof. 
  
 (g) No construction or other work that has not been paid for in full at
Closing has been or will be conducted on all or a portion of the Property during the period which is ninety (90) days prior to the Effective Date or Closing. 
  
 6.5 Financial Statements. The balance sheet of Company (“Company Balance Sheet”) as of March 31, 2003 (“Company Balance Sheet Date”) (attached hereto
as Exhibit F), to be delivered within twenty five (25) days of the Effective Date, certified by the manager of Company, and the income and interim financial information to be delivered to Buyer, fairly present, in conformity with GAAP applied on a
consistent basis (except as otherwise indicated in such statements and except that such statements do not contain footnote disclosures required by GAAP and do not reflect normal year-end adjustments), the financial position of Company as of the
dates thereof and the results of operations and cash flows for the periods then ended (subject to normal recurring year-end adjustments in the case of the interim financial statements). Company makes and keeps accurate books and records reflecting
its assets and maintains internal accounting controls that provide reasonable assurance that (i) transactions are executed with management’s authorization, (ii) transactions are recorded as necessary to permit preparation of Company’s
financial statements and to maintain accountability for the assets of Company, (iii) access to the assets of Company is permitted only in accordance with management’s authorization, and (iv) the reported accountability of the assets of Company
is compared with existing assets at reasonable intervals. 
  
 6.6 Absence of
Certain Changes. Since Company Balance Sheet Date, Company has conducted its business in the ordinary course consistent with past practices, and there has not been: 
  
 (a) any Material Adverse Change or any event, occurrence, development, or state of circumstances or facts which reasonably
could be expected to result in a Material Adverse Change; 
  
 (b)
any declaration, setting aside or payment of any dividend or other distribution with respect to any membership interests in Company, any issuance by Company of membership interests or securities of, or other ownership interests in, Company or any
repurchase, redemption or other acquisition by Company of any outstanding membership interests in Company, or other securities of, or other membership interests or ownership interests in, Company; 

 (c) any amendment of any term of any membership interest in Company or any other outstanding security or
ownership interest in Company; 
  
 (d) any incurrence, assumption,
or guarantee by Company of any indebtedness for borrowed money or any other obligation; 
  
 (e) any creation or assumption by Company of any Lien on any membership interest or any asset of Company; 
  
 (f) any making of any loan, advance or capital contributions to or investment in, any Person; 
  
 (g) any personal property or real property damage, destruction, or casualty
loss or personal injury loss (whether or not covered by insurance) affecting the business or assets of Company; 
  
 (h) any transaction or commitment made, or any contract or agreement entered into, by Company relating to its assets or business (including the
acquisition or disposition of any assets) or any relinquishment or modification by Company of any contract or other right, other than transactions, commitments, relinquishments or modifications in the ordinary course of business consistent with past
practices and those contemplated by this Agreement; 
  
 (i) any
change in any method of accounting or accounting practice by Company, except for any such change after the Effective Date required by reason of a concurrent change in GAAP; 
  
 (j) any (i) grant of any severance or termination pay to any manager of Company, (ii) hiring of any employees or entering
into of any employment, deferred compensation, or other similar agreement (or any amendment to any such existing agreement) with any manager, officer or employee of Company, (iii) increase in benefits payable under an existing severance or
termination pay policies or employment agreements, or (iv) increase in compensation, bonus, or other benefits payable to members or manager of Company; 
  
 (k) any amendment to or termination of any material contract, agreement, or license, except for the termination of any Lease in accordance with this
Agreement, to which Company is a party; or 
  
 (l) any commitment
or agreement to do any of the foregoing. 
  
 6.7 No Liabilities or Obligations.
Except as set forth on Disclosure Schedule 6.7, as of the Effective Date there are, and as of the Closing Date there will be, no liabilities or obligations of Company of any kind or nature whatsoever, whether accrued, contingent, absolute,
determined, determinable, or otherwise, and there is no existing condition, situation or set of circumstances which could reasonably be expected to result in such a liability or obligation, other than: 
  
 (a) the liabilities shown on the Company Balance Sheet, all of which will be
either fully satisfied at Closing, or for which Buyer receives a credit at Closing, or which will be paid as part of the post-Closing adjustments as set forth in this Agreement; 

 (b) the liabilities which arise in the ordinary course of business after the Company Balance Sheet Date,
all of which will be either fully satisfied at Closing, or for which Buyer receives a credit at Closing, or which Will be paid as part of the post-Closing adjustments as set forth in this Agreement; 
  
 (c) the return of any Security Deposits as set forth in the Leases or in
separate security deposit agreements, provided to Buyer as part of the Disclosure Documents or Due Diligence Documents; 
  
 (d) post-Closing liabilities and obligations under the Leases; and 
  
 (e) post-Closing liabilities and obligations under the Contracts. 
  
 6.8 Compliance with Laws; No Defaults. 
  
 (a) Company is not in violation of, and, to the best of Sellers’
knowledge, has not since its respective formation violated, any applicable laws, statutes, ordinances, or regulations. 
  
 (b) Neither Company nor any member, manager, officer, director, agent, employee, or other Person associated with or acting on behalf of Company has (i)
used any funds of Company for any unlawful contribution, gift, entertainment, or other expense relating to political activity; (ii) made any direct or indirect unlawful payment to any United States or foreign government official or employee from
funds of Company; (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended; or (iv) paid or made any bribe, rebate, payoff, influence payment, kickback, or other unlawful payment. 
  
 (c) Company is not in default under, and no condition exists that with notice
or lapse of time or both would constitute a default under, (i) any mortgage, agreement, indenture, or evidence of indebtedness for borrowed money to which Company is a party or by which it or its assets are bound, or (ii) any judgment, order, or
injunction of any court, arbitrator, or Governmental Authority. 
  
 6.9 Rental and
Income Standards. The rental and income standards for the Property are set forth in Disclosure Schedule 6.9. All Leases have been entered into in conformance with such rental and income standards. 
  
 6.10 Litigation. There is no litigation, arbitration, or administrative proceeding pending
nor, to the best knowledge of KGH, threatened with respect to Company, or with respect to any Seller which may affect Company, all or a portion of the Property, or this Agreement, except as set forth in Disclosure Schedule 6. 10. 
  
 6.11 Contracts and Bank Accounts. All Contracts as of the Effective Date with consideration
of $10,000 or more are identified on Disclosure Schedule B.(5); Company is not in default in any of those Contracts; Company will not enter into any other service contract affecting all or a 

 portion of the Property which is not terminable on sixty (60) days’ notice, without penalty or charge, or is not on
commercially reasonable terms, without the prior written consent of Buyer. At or before Closing, Sellers will terminate, or tender notice of termination of, those Contracts identified on Disclosure Schedule B.(5) that Company contractually is
entitled to terminate without cost and that Buyer designates in writing to Sellers’ Agent prior to Closing. Disclosure Schedule 6.11 sets forth an accurate and complete list showing the name and address of each bank, securities broker, mutual
fund, investment company, investment adviser or other financial institution or similar person with which Company has an account, including the account or box number and name and the names of all persons and entities authorized to draw thereon or
have access thereto, including authorized signatures. 
  
 6.12 Other Contracts.

  
 (a) Except for the Contracts disclosed in Disclosure Schedule
B.(5), the Leases, and the Permitted Title Encumbrances, Company is neither a party to nor subject to any contract, agreement, or understanding, whether written or oral. 
  
 (b) Each agreement, contract, arrangement, and commitment disclosed in any Disclosure Schedule to this Agreement or required
to be disclosed pursuant to Section 2.1(b) is a valid and binding agreement of Company, enforceable in accordance with its terms, and is in full force and effect, and neither Company nor any other party thereto is in default under the terms of any
such agreement, contract, arrangement, or commitment. 
  
 (c) In
the event any agreement, contract, lease, or arrangement to which Company is a party and which Buyer desires to continue in full force and effect following the Closing requires an assignment or a third party consent or approval, Sellers shall in
good faith use their best efforts to obtain such assignment or consent prior to or on the Closing. 
  
 6.13 No Employees. The Company does not now have, and since its formation has never had, any employees and Company has no ongoing or future obligation or commitment to hire any employees in the future or pay any
employee any compensation of any kind. 
  
 6.14 Permits and Access. The Land has
legal and physical access to adjacent roads, through curb cuts approved by all Governmental Authorities; the Real Property has operating water supply and sewage disposal systems with sufficient capacity to serve the Real Property; Company has
obtained all necessary permits and licenses and paid all fees in connection therewith for access to the public water supply and sewage disposal systems; and the Real Property is served by public utilities providing electrical and telephone service.

  
 6.15 Environmental. 
  
 (a) “Environmental Laws” means all federal, state and local laws,
statutes, regulations, permits, orders, ordinances, codes, rules and other governmental restrictions, requirements, and duties, including common law, relating to the treatment, storage, disposal, transportation, or release of any Hazardous
Substances or otherwise relating to human health, the environment or hazardous substances, including the Federal Solid Waste Disposal Act; the Federal Clean Air Act (including the Clean Air Act Amendments of 1990); the Federal Water Pollution
Control Act; the Hazardous Materials Transportation Act; the Federal Toxic 

 Substances Control Act; the Federal Resource Conservation and Recovery Act of 1976; the National Environmental Policy
Act; the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980; and similar state laws, all amendments to any of the foregoing statutes, and all regulations promulgated by any federal or state agencies, including the
Environmental Protection Agency, regulations of the Nuclear Regulatory Agency, and regulations of any state department of natural resources or state environmental protection agency now or at any time hereinafter in effect. 
  
 (b) Neither Company nor Sellers has received notice of any pending or
threatened litigation or administrative proceeding which in any instance (i) asserts or alleges any violation of applicable Environmental Laws on the part of Company or in connection with all or a portion of the Property, (ii) asserts or alleges
that Company or any party relative to all or a portion of the Property is required to clean up, remove, or otherwise take remedial or other response action due to the disposal, depositing, discharge, leaking or other release of any Hazardous
Substances, or (iii) asserts or alleges that Company or any party relative to all or a portion of the Property is required to pay all or any portion of the costs of any past, present or future cleanup, removal, or remedial or other response action
which arises out of or is related to the disposal, depositing, discharge, leaking or other release of any Hazardous Substances by Company or any party relative to the Property. Neither Company nor any other party relative to all or a portion of the
Property is subject to any judgment, decree, order, or citation related to or arising out of any Environmental Laws. Company has not been named or listed as a potentially responsible party by any governmental body or agency in any matter arising
under any Environmental Laws, Company is not a participant in, nor does Company or KGH have knowledge of, any governmental investigation involving all or a portion of the Property. 
  
 (c) Neither Company nor, to the best knowledge of KGH, any other Person has caused or permitted any Hazardous Substances to
be stored, deposited, treated, recycled, or disposed of on, under or at all or a portion of the Property, which materials, if known to be present, reasonably may be expected to require or authorize cleanup, removal, or other remedial action under
any applicable Environmental Laws. 
  
 (d) Except as disclosed in
the environmental report delivered by Sellers to Buyer pursuant to Section 23, there are not now nor have there ever been, any tanks or other storage facilities on, under, or at all or portion of the Property or any other real property now or
heretofore owned or leased by Company which contain or contained Hazardous Substances which, if known to be present in soils or ground water, may reasonably be expected to require or authorize cleanup, removal, or other remedial action or reporting
under any Environmental Laws. 
  
 (e) Company has in full force
and effect all material permits, licenses, and approvals required to be maintained under any Environmental Laws applicable to Company or all or a portion of the Property. 
  
 (f) Neither Company nor Sellers are aware of any monitoring and testing equipment and records which are legally required to
assess environmental compliance in accordance with Environmental Laws at the Real Property, and there are no conditions presently existing at the Real Property which would subject Company to any damages, penalties, cleanup costs, or other

 liability under any applicable Environmental Laws, or which reasonably may be expected to require cleanup, removal,
remedial action, or other response under any applicable Environmental Laws. 
  
 6.16 Insurance Coverage. KGH has furnished to Buyer true and complete copies of all insurance policies and fidelity bonds pertaining to the Property in its possession or control, or if the policies are not available, insurance certificates
or binders evidencing such policies, covering the assets, business, equipment, properties, operations, and managers of Company, a list of which is attached as Disclosure Schedule 6.16. There is no claim pending under any of such policies or bonds as
to which coverage has been questioned, denied, or disputed by the underwriters of such policies or bonds. All premiums payable under all such policies and bonds have been paid, and Company is otherwise in full compliance with the teams and
conditions of all such policies and bonds. Such policies of insurance and bonds (or other policies and bonds providing substantially similar insurance coverage) have been in effect since the formation of Company, as applicable, remain in full force
and effect, and such insurance coverage, as it relates to the Property, has been maintained on a “per occurrence basis.” Such policies of insurance and bonds are of the type and in amounts customarily carried by Persons conducting
businesses similar to those of` Company. Company knows of no threatened termination of, or premium increase with respect to, any of such policies or bonds. 
  
 6.17 Condemnation; Improvements; Special Assessments. 
  
 (a) There is no condemnation or eminent domain proceeding affecting all or a portion of the Property now pending or threatened. 
  
 (b) Except as disclosed on the Survey, to the best of the KGH’s
knowledge, the Improvements are located within the boundary lines of the Land and are not in violation of applicable setback requirements, local comprehensive plan provisions, zoning laws and ordinances (and no such portion or parcel or buildings or
improvements located thereon are subject to “permitted non-conforming use” or “permitted non-conforming structure” classifications), building code requirements, permits, licenses, or other forms of approval, regulation, or
restrictions by any Governmental Authority, do not encroach on any easement which may burden the Land; and all Improvements have received all approvals and certificates of occupancy of Governmental Authorities (including licenses and permits)
required in connection with the ownership, operation, or use thereof and have been operated and maintained in accordance with applicable laws, ordinances, rules, and regulations. 
  
 (c) No special assessment or benefit assessment has been levied or, to the best of the KGH’s knowledge, authorized for
levy on all or a portion of the Property on account of any public improvement in the vicinity and no such public improvement has been commenced or authorized by any Governmental Authority that could result in any special assessment or benefit
assessment on all or a portion of the Property. 
  
 6.18 Tenants. 
  
 (a) Disclosure Schedule 6.18(a) (“Contract Rent Roll”) lists the
Leases as of the Effective Date and accurately sets forth for each tenant: (i) the name of the tenant; (ii) the 

 apartment unit or garage; (iii) the initial date of the Lease and each amendment thereto; (iv) the expiration date of the
current term; (v) the monthly fixed rent applicable during the current term; (vi) any and all guarantors of the Lease; (vii) the amount of the security deposit actually paid by the tenant; and (viii) any amount of any security deposit returned as
applied due to tenant default. 
  
 (b) Except as set forth in
Disclosure Schedule 6.18(b), all of the Leases are in full force and effect and no party thereto is in default or breach under any such Lease. Neither Sellers nor Company has received notice of any claim by the tenant under any Lease that the
landlord thereunder is in default, that any Lease is terminated, or that the tenant’s obligations thereunder are limited in any way. To the best of Sellers’ knowledge, no tenant under any Lease has a claim that the landlord thereunder is
in default under the Lease, any Lease is terminated, or that the tenant’s obligations thereunder are limited in any way. No tenant under any Lease has been in default in the payment of rent beyond any applicable grace period. 
  
 (c) Except as set forth in the Contract Rent Roll, to the best of
Sellers’ knowledge, all tenants under Leases are in occupancy of the apartment unit or garage set forth opposite their respective names and no tenant has subleased their apartment or garage or assigned their Lease, and Sellers have not given
their consent to any such sublease or assignment. 
  
 (d) All of
the Leases are in full force and effect; and, except as may be provided by law and except as set forth in the Contract Rent Roll, no Lease or other instrument in writing, signed by Sellers, gives any tenant the right to renew or extend the existing
Lease. 
  
 (e) Other than those commissions listed on Disclosure
Schedule 6.18(e), there are no brokerage or other leasing commissions payable with respect to any of the existing Leases or renewals of same or expansions or other changes in all or a portion of the Property, other than those commissions that will
be paid by Sellers. 
  
 6.19 Defects. To the best of KGH’s knowledge, there
are no structural defects in the Improvements or any defect in the FF&E, HVAC, plumbing, drainage, electrical and major mechanical systems on the Real Property or any non-conformance thereof with any applicable building codes or other laws,
ordinances, rules, or regulations. 
  
 6.20 Soil Conditions. To the best of
KGH’s knowledge, there are no adverse geological or soil conditions affecting all or a portion of the Property. Except as may be disclosed in the Due Diligence Documents, Sellers have no knowledge of the presence of Hazardous Substances in,
under, or near the Property. 
  
 6.21 No Contributions or Dedications. Except as
set forth on Disclosure Schedule 6.21, no written commitments have been or will be made by or on behalf of Sellers to any Governmental Authority, utility company, school board, church or other religious body, any owners’ association, or to any
other Person in connection with any rezoning proceeding or other matter relating to all or a portion of the Property which would impose any obligation on Company, Buyer, or their respective successors or assigns to make any contribution or
dedication of money or land, or to construct or maintain any improvements of a public or private nature on or off the Property. 

 6.22 Property Regulations. There are no violations or alleged violations of any fire, zoning, building, or health rules,
regulations, or rulings, whether federal, state, or local, or any other alleged violations of law which affect all or a portion of the Property. 
  
 6.23 Certificates of Occupancy. All certificates of occupancy required have been issued for the Property have been paid for, and are in full force and effect. 

 
 6.24 InterCompany Arrangements. Company does not own any note, bond, debenture, or other
indebtedness, nor is it otherwise a creditor or debtor, of any Seller, any member or manager of Company, or any of their respective Affiliates, other than as set forth in Company’s Operating Agreement. Other than as set forth in Disclosure
Schedule 6.24, since the Company Balance Sheet Date there has not been any payment by Company to any such Person, charge by any such Person to Company, or other transaction between Company and any such Person. 
  
 6.25 Tax Matters. Except as disclosed in Disclosure Schedule 6.25, and where applicable, (i)
Company has timely filed (or has had timely filed on its behalf) with the appropriate Taxing Authorities all tax returns (“Tax Returns”) required to be filed with such Taxing Authorities and such Tax Returns are complete and accurate in
all respects; (ii) Company has paid on a timely basis all, or where payment is not yet due, has established (or has had established on its behalf and for its sole benefit and recourse) an adequate accrual in accordance with GAAP for the payment of,
all Taxes far all periods ending through the Closing Date; (iii) no audits, investigations. or claims presently are pending with regard to any Taxes or Tax Returns of Company and to the best knowledge of KGH, no such audit, investigation or claim is
threatened; (iv) as to any Tax Returns of Company that has been examined by the applicable Taxing Authority, no material adjustments were asserted as a result of such examination which have not been resolved and fully paid, and no issue has been
raised by any Taxing Authority in any audit, investigation or claim of Company that, if raised with respect to any other period not so audited, investigated or claimed could be expected to result in a proposed deficiency for any such period not so
audited, investigated or claimed; (v) Company has not made any election to be treated as a corporation or association taxable as a corporation for federal tax purposes; and (vi) Company does not have any past due Taxes owed to any governmental
authority. KGH shall be the Tax Matters Partner, as that term is used in the Code, with respect to any federal and state income tax returns which include the Closing Date, and Sellers at their full cost and expense shall have full control on behalf
of the Company over any administrative or judicial proceeding involving (a) any tax imposed on the Company for all tax periods through the Closing Date or for which Sellers bear any liability under, this Agreement or (b) any tax return filed by the
Company for any tax period prior to or including the Closing Date. 
  
 Sellers, at
Sellers’ expense, shall cause the Company’s Form 1065 U.S. Partnership Return of Income and any state or local income tax report (“Report of Income”), to be prepared and timely filed for the Company’s tax year ending on the
Closing Date. All items of income, gain, deduction, loss and credit for such period ending on the Closing Date shall be allocated to Sellers, Buyer, at Buyer’s expense, shall cause Company’s Return of Income to be prepared and timely filed
for all tax years commencing after the Closing Date and no items of income, gain, deduction, loss or credit thereon shall be allocated to Sellers. Each of the parties and the Company will cooperate with each other, including the signing of Returns
and other documents as reasonably requested and providing others access to the books and records of the Company, to the extent under their control, at reasonable times and places for purposes of preparing any governmental Return of Income or filing
same in a timely and correct manner. 

 Sellers acknowledge and agree that the Company will terminate its existence as a “partnership” for federal tax
purposes as of the Closing Date. 
  
 Notwithstanding any other provision of this
Agreement, this Section 6.25 shall survive Closing indefinitely. 
  
 6.26 Employee
Benefit Plans. Company does not maintain and has never maintained any “employee benefit plan”, as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, or otherwise. 
  
 6.27 Securities Laws. Company has not (a) issued any securities in violation of the
requirements of Section 5 of the 1933 Act or any other law: (b) violated any rule, regulation or requirement under the 1933 Act or the 1934 Act; or (c) redeemed any securities in violation of any applicable state or federal securities law or any
agreement or contract governing the redemption of such securities. 
  
 6.28
Americans With Disabilities Act Compliance. Except as set forth in the ADA Certificate, and to the best knowledge of KGH, the Real Property is in compliance with applicable laws, rules and regulations under the Americans with Disabilities Act
(“ADA”), the Fair Housing Act, Title VIII of the Federal Civil Rights Act of 1968, 42 U.S.C. §3601 et seq., and all similar applicable state and local laws and the Real Property, and has not been the subject of any complaints or
citations pursuant to the ADA or Fair Housing Act as a result of actual or alleged violations of the ADA, or Fair Housing Act. 
  
 6.29 Solvency. Company has not: (a) made a general assignment for the benefit of creditors; (b) filed any voluntary petition in bankruptcy or suffered the filing of any
involuntary petition by its creditors; (c) suffered the appointment of a receiver to take possession of all, or substantially all, of its assets; (d) suffered the attachment or other, judicial seizure of all, or substantially all, of its assets; (e)
admitted in writing its inability to pay its debts as they come due; or (f) made an offer of settlement, extension or composition to its creditors generally. 
  
 6.30 Licenses; Regulatory Approvals; Utilities. Except as set forth on Disclosure Schedule 6.30, Company holds all material licenses, permits, certificates of occupancy
and other regulatory approvals required or necessary to be applied for or obtained in connection with the Company Business except for such of the foregoing which, if not held, would not result in a Material Adverse Chance. All such licenses,
permits, certificates of occupancy and other approvals are listed on Disclosure Schedule 6.30. Except as set forth on Disclosure Schedule 6.30, all such licenses, permits, certificates of occupancy and other regulatory approvals relating to the
business, operations, facilities and properties of Company are in full force and effect. Except as set forth on Disclosure Schedule 6.30, any and all past litigation concerning such licenses, certificates and regulatory approvals, and all claims and
causes of action raised therein, have been finally adjudicated, and, in the case of such litigation finally adjudicated since March 31, 2003, such adjudication has not resulted in a Material Adverse Change. Except as set forth on Disclosure Schedule
6.30, no such license, permit or regulatory approval has been revoked, 

 conditioned (except as may be customary) or restricted, and no action (equitable, legal or administrative), arbitration
or other process is pending, or threatened, which in any way challenges the validity of, or seeks to revoke, condition or restrict any such license, permit or regulatory approval. 
  
 6.31 Intellectual Property. 
  
 (a) Disclosure Schedule 6.31 (a) sets forth a list of all Intellectual Property which is owned by, licensed by, or licensed to Company or otherwise used
or able to be used in the Company Business (other than commonly-used computer software which is generally available to the public and the use rights to which were legally acquired by Company either for free or through established retail facilities)
and indicates, with respect to each item of Intellectual Property listed thereon, the owner thereof and, if applicable, the name of the licensor and licensee thereof and the terms of such license or other contract relating thereto. Company owns or
has the lawful right to use all Intellectual Property as currently used or as necessary for the conduct of the Company Business as now conducted. 
  
 (b) Except as set forth in Disclosure Schedule 6.31(b), Company has no liability or obligations to any third parties incident to the Intellectual Property
used or able to be used by Company in the conduct of the Company Business as heretofore conducted, and Company has timely met all of its obligations to any third parties incident to the Intellectual Property used or able to be used by Company in the
conduct of the Company Business as heretofore conducted, and such obligations have been correctly and adequately disclosed in the Financial Statements. 
  
 (c) Except as set forth in Disclosure Schedule 6.31(c), Company is not a party to any confidentiality or other agreement which materially restricts its
use or disclosure of information. 
  
 6.32 Brokerage. Except as listed on
Disclosure Schedule 6.32, Company has not made any agreement or taken any other action which might cause a claim for brokerage commissions, finders’ fees or similar compensation in connection with the transaction contemplated by this Agreement.

  
 6.33 Other Information. None of the documents or written information
delivered, or representations or KGH’s good faith warranties made, to Buyer in connection with the transaction contemplated by this Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state a
material fact necessary in order to make the statements contained therein not misleading. The budget of Company attached hereto as Exhibit G delivered to Buyer constitutes an estimate of the information purported to be shown therein as of the
Effective Date, and KGH is not aware of any fact or information that would lead it to believe that such projections are incorrect in any material respect, except for real estate tax and insurance cost estimates. 
  
 6.34 Continuing Representations. The representations and warranties in this Agreement shall
be true and correct on the Closing Date with the same effect as though made at such Closing, or if any change in the matters covered shall occur between the Effective Date and the date of Closing, such change shall have been disclosed in writing to
Buyer and shall not materially adversely affect the condition, repair, value, expense of operation, or income potential of the 

 Property. Sellers’ representations and warranties set forth in this Agreement shall expire if Buyer sells to any
party other than an Affiliate of Buyer more than fifty percent (50%) of its membership interest in the Company or causes Company to sell more than a fifty percent (50%) interest in the Property. 
  
 For purposes of this Article 6, the term “to the best of KGH’s knowledge” or
words of similar import shall mean the facts or other information which are known by Thomas L. Cavanaugh (or which would be known but for his reckless disregard of known facts or information), who is the individual having knowledge regarding the
matters addressed in this Article 6, and acting solely in his capacity as an officer, agent or employee of KGH, PAC or of an Affiliate of either of them and is in no manner expressly or impliedly making any of these representations in an individual
capacity and Buyer agrees that it shall not bring any action against him. 
  
 Article 6A 
 Separate Representations and Warranties of PAC. 
  
 PAC represents and warrants to Buyer the accuracy of the following statements as of the
Effective Date and as of the Closing Date, as set forth in Section 6.34 hereof: 
  
 6A.1 PAC Capacity and Authority. PAC has full legal right and all requisite power and authority to execute, deliver, and perform this Agreement and every Ancillary Agreement to which it is a party. The execution, delivery, and performance
by PAC of this Agreement and the Ancillary Agreements to which it is a party have been duly authorized by all requisite corporate action of PAC and will not: 
  

(a) violate any law, regulation, injunction, decree, or order of any court or Governmental Authority; 
  
 (b) conflict with the articles of incorporation or bylaws of PAC or the
articles of organization or limited liability company agreement of Company or any other charter agreement of either PAC or Company; 
  
 (c) require any notice to, filing or registration with, or consent, license, approval, or authorization of, any Governmental Authority or other Person
other than KGH, Victoria or Osprey; or 
  
 (d) result in a breach
or default, the imposition of a penalty, a suspension, cancellation, modification, or termination (or create any right of suspension, cancellation, or termination), or the acceleration of the maturity of any liability, obligation, or indebtedness of
PAC under or pursuant to any order, decree, lease, contract, mortgage, indenture, judgment, promissory note, security agreement, or other agreement or instrument to which PAC is a party or against which its assets are bound other than as set forth
on Disclosure Schedule 6A.1(d). 
  
 6A.2 Execution and Delivery; Binding Effect.
This Agreement has been duly and validly executed and delivered by PAC, and PAC will have duly and validly executed each of the Ancillary Agreements to which it is a party before that Ancillary Agreement is delivered to the other parties to this
Agreement at the Closing This Agreement is, and (when executed and delivered to the other parties at the Closing) each Ancillary Agreement to which PAC is a party will be, valid, effective, and enforceable by the other parties to this Agreement
against PAC in accordance with its terms. 

 6A.3 Organization. Company is a limited liability company folded under the laws of the State of Florida and has all
requisite power and authority to own its property and to conduct its business, as now conducted. PAC is a corporation formed under the laws of the State of Florida and has all requisite power and authority to own its property and to conduct its
business, as now conducted. 
  
 6A.4 Financial Statements. The balance sheet of
PAC as of March 31, 2003, and the income and financial information to be delivered to Buyer, fairly present the financial position of PAC as of the dates thereof and the results of operations and cash flows for the periods then ended (subject to
normal recurring year-end adjustments in the case of the interim financial statements). PAC makes and keeps accurate books and records reflecting its assets and maintains internal accounting controls that provide reasonable assurance that (i)
transactions are executed with management’s authorization, (ii) transactions are recorded as necessary to permit preparation of PAC’s financial statements and to maintain accountability for the assets of PAC, and (iii) access to the assets
of PAC is permitted only in accordance with management’s authorization. 
  
 6A.5 Shareholders; Incumbency. Disclosure Schedule 6A.5 lists PAC’s shareholders (including names, addresses and number of shares owned), officers and directors. 
  
 Article 6B. 
 As Is, Where Is Transaction, Release 
  
 6B.1 As Is, Where Is.
Except to the extent specifically set forth in this Agreement, Sellers make and shall make no representation or warranty either express or implied regarding the condition, operability, safety, fitness for intended purpose or use of the Property. The
Buyer specifically acknowledges and agrees that the Property is being transferred to Buyer, through Sellers’ sale of their Membership Interests in Company, on an “AS IS, WHERE IS, AND WITH ALL FAULTS” basis and that, except as
specifically set forth in Agreement, Buyer is not relying on any representations or warranties of any kind whatsoever, express or implied, from Sellers, their agents, officers, or employees, as to any matters concerning the Property, including, as
to the economics of the operation of the Property, the freedom of the Property from latent or apparent vices or defects. 
  
 6B.2 Release. Except to the extent specifically set forth in this Agreement, Buyer shall have no rights or claims against Sellers for damages, rescission of the sale, or
reduction or return of the Purchase Price because of any matter not warranted to Buyer by any Seller, Company, KGH, PAC, or any of them, and all such rights and claims are hereby expressly waived by Buyer. 

 Article 7 
 Indemnity 
  
 7.1 Indemnification. If the
Closing occurs, Sellers and PAC agree to the following provisions of this Article 7. If Closing does not occur, Buyer’s sole remedies shall be those set forth in Section 16.1 and 17.10 of this Agreement. Subject to Section 7.2: 
  
 (a) KGH and PAC, jointly and severally, agree to indemnify and hold harmless
Buyer and its shareholders, directors, members, managers, officers, employees, and agents, from, against, and in respect of, each and every loss. liability, claim, demand, or expense, including reasonable attorneys’ fees (including those
incurred in all bankruptcy and probate matters), reasonable investigation, and consultant fees and costs, and of any other kind whatsoever arising out of or resulting from each and every instance of any of the following: 
  
 (i) Any breach of any representation or warranty of KGH, individually or on
behalf of Company, or PAC, or failure of KGH or PAC to fulfill any agreement or covenant of any Seller, KGH, Company or PAC under this Agreement, any Ancillary Agreement, or any other agreement or document delivered by Sellers, or any one of them,
to Buyer, in connection with the transaction contemplated by this Agreement; and 
  
 (ii) Any and all actions, suits, proceedings, demands, assessments, judgments, costs, and reasonable legal and other expenses (including those incurred in all bankruptcy and probate matters) incident to any of the
foregoing listed in clause (i) above; and 
  
 (iii) In connection
with events occurring prior to Closing, any and all claims by tenants under any Lease that the landlord thereunder is in default under the Lease, that any Lease is terminated, or that the tenant’s obligations thereunder are limited in any way.

  
 Notice of any indemnification claim under this section shall
be provided to Sellers’ Agent and Sellers’ counsel, at the addresses set forth herein. 
  
 (b) Each Seller (except as to KGH in the event that its indemnification under Section 7.1(a) applies), separately agrees to indemnify and hold harmless
Buyer and its shareholders, directors, members, managers, officers, employees, and agents, from, against, and in respect of, each and every loss, liability, claim, demand, or expense, including reasonable attorneys’ fees (including those
incurred in all bankruptcy and probate matters), reasonable investigation, and consultant fees and costs, and of any other kind whatsoever arising out of or resulting from each and every instance of any of the following: 
  
 (i) Any material breach of any representation or warranty by such Seller or
failure of such Seller to fulfill any agreement or covenant of such Seller under this Agreement, any Ancillary Agreement, or any other, agreement or document delivered by such Seller to Buyer, in connection with the transaction contemplated by this
Agreement; and 
  
 (ii) Any and all actions, suits, proceedings,
demands, assessments, judgments, costs, and reasonable legal and other expenses (including those incurred in all bankruptcy and probate matters) incident to any of the foregoing listed in clause (i) above. 
  
 7.2 Limitations on KGH and PAC Indemnity. Except as provided in Section 13.2(a), in no event
shall the aggregate obligations of KGH and PAC under Section 7.1a exceed the Escrow Amount plus four million dollars ($4,000,000.00), and KGH’s and PAC’s obligations under this Agreement shall survive until the expiration of the Survival
Period. 
  
 7.3 Limitation on Seller Indemnity. The separate obligations of each
Seller under Section 7.1(b), first, with respect to its representations under Articles 3, 4 and 5, respectively, shall not be 

 limited hereby, and second, with respect to any other obligations under Section 7.1(b) shall be limited to the Escrow
Amount; provided, however, that with respect to the indemnity obligations of PAC and KGH, the limitations shall be the Escrow Amount plus four million dollars ($4,000,000). Each Seller’s obligations under this Agreement shall survive until the
expiration of the Survival Period. 
  
 7.4 Notice. Except as provided in Sections
5.25 and 13.2(a), and notwithstanding anything to the contrary contained in this Agreement, KGH, PAC and Sellers shall not be required to indemnify, hold harmless and defend Buyer with respect to claims pursuant to Section 7.1(a) or 7.1(b) unless
KGH, PAC or such Seller shall have received notice of such claim (describing the claim, the amount thereof, if known and quantifiable, and the basis thereof) within the Survival Period. 
  
 7.5 Indemnification Procedure. 
  
 (a) Any party making a claim for indemnification under this Agreement (an “Indemnitee”) shall notify the indemnifying party or parties, as the
case may be (an “Indemnitor”) of the claim in writing promptly (but in no event later than thirty (30) days) after receiving written notice of any action, lawsuit, proceeding, investigation or other claim against it (if by a third party)
or discovering the liability, obligation or facts which may reasonably be expected to give rise to such claim for indemnification, describing the claim, the amount thereof (if known and quantifiable), and the basis thereof (a “Notice of
Claim”); provided, however, that the failure so to notify Indemnitor shall not relieve the Indemnitor of its obligations hereunder except to the extent such failure shall have actually prejudiced the Indemnitor. 
  
 (b) With respect to any third party action, lawsuit, proceeding,
investigation or other claim which is the subject of a Notice of Claim (a “Third Party Claim”), an Indemnitor shall be entitled to assume and control (with counsel of its choice) the defense of such Third Party Claim at the
Indemnitor’s expense and at its option by sending written notice of its election to do so within fifteen (15) days after receiving the Notice of Claim from the Indemnitee as aforesaid; provided, however, that: 
  
 (i) The Indemnitee shall be entitled to participate in the defense of such
Third Party Claim and to employ counsel of its choice for such purpose (the fees and expenses of such separate counsel shall be borne by the Indemnitee); 
  
 (ii) If the Indemnitor elects to assume the defense of any such Third Party Claim, the Indemnitor shall be entitled to compromise or settle such Third
Party Claim in its sole discretion so long as either (i) such compromise or settlement is purely monetary and provides an unconditional release of the Indemnitee with respect to such claim or (ii) the Indemnitor shall obtain the prior written
consent of the Indemnitee (which shall not be unreasonably withheld or delayed); 
  
 (iii) If the Indemnitor shall not have assumed the defense of such Third Party Claim within the fifteen (15) day period set forth above, the Indemnitee may assume the defense of such Third Party Claim with counsel
selected by it and may make any compromise or settlement thereof or otherwise protect against the same and be entitled to all amounts paid as a 

 result of such Third Party Claim or any compromise or settlement thereof, to the extent Indemnitee is entitled to
indemnification hereunder with respect thereto, provided that, in the case of any such compromise or settlement, (i) such compromise or settlement is purely monetary and provides an unconditional release of the Indemnitor with respect to such claim
or (ii) the Indemnitee shall obtain the prior written consent of the Indemnitor (which shall not be unreasonably withheld, delayed or conditioned); and 
  
 (iv) The Indemnitor shall be entitled to assume the defense of such Third Party Claim only to the extent that if the Third Party Claimant of such Third
Party Claim prevails, such victory would not result in (i) a Material Adverse Change in the value of the Company; (ii) any encumbrance in excess of One Hundred Thousand and No/100 Dollars ($100,000.00) against Company, Buyer, the Property or any
assets of Company; (iii) a materially adverse impact on the Company’s ability to operate its business or the Property; or (iv) constitute a default under any agreements between Buyer or an Affiliate of Buyer and Lender. If the Indemnitee
assumes the defense of such Third Party Claim under this subsection (iv), Indemnitee may make any compromise or settlement thereof or otherwise protect against the same and be entitled to all amounts paid as a result of such Third Party Claim or any
compromise or settlement thereof, to the extent Indemnitee is entitled to indemnification hereunder with respect thereto, provided that, in the case of any such compromise or settlement, (i) such compromise or settlement is purely monetary and
provides an unconditional release of the Indemnitor with respect to such claim or (ii) the Indemnitee shall obtain the prior written consent of the Indemnitor (which shall not be unreasonably withheld, delayed or conditioned). 
  
 (c) The Indemnitee shall at all times cooperate, at its own expense, in all
reasonable ways with, make its relevant files and records available for inspection and copying by, and make its employees available or otherwise render reasonable assistance to the Indemnitor. Any failure by the Indemnitee to cooperate with the
Indemnitor shall render null and void any obligation of the Indemnitor to indemnify the Indemnitee pursuant to this Section 7.5 to the extent that the Indemnitor has been materially prejudiced by such failure to cooperate. 
  
 (d) Upon payment of any amount pursuant to any indemnification claim, the
Indemnitor shall be subrogated, to the extent of such payment, to all of the Indemnitee’s rights of recovery (and, if KGH, PAC or Sellers are the Indemnitors, the Indemnitee shall cause the KGH, PAC or Sellers, as the case may be, to be
subrogated to all of Buyer’s rights of recovery) against third parties with respect to the matters to which such indemnification claim relates. 
  
 (e) The rights and remedies of Buyer and KGH, PAC and Sellers under this Section 7.5 are exclusive and in lieu of any and all other rights and remedies
which Buyer or KGH, PAC and Sellers, as the case may be, may have against the other, under this Agreement or otherwise, (a) with respect to (i) the inaccuracy of any representation, warranty, certification or other statement made by KGH, PAC,
Sellers or Buyer in or pursuant to this Agreement or (ii) any breach of, or failure to perform or comply with, any covenant or agreement set forth in this Agreement or (b) otherwise with respect to the transactions contemplated by this Agreement;
provided, however, that this sentence shall not limit the rights of the parties to seek specific performance of any provision of this Agreement or any other rights and remedies expressly set forth in this Agreement. All claims for indemnification
must be asserted, if at all, in good faith, in accordance with the provisions this Section 7.5 and within the Survival Period. 

 (f) If at any time subsequent to the receipt by an Indemnitee of an indemnity payment hereunder, such
Indemnitee receives any recovery, settlement or other similar payment with respect to the claim, debt or liability for which it received such indemnity payment (the “Recovery”), such Indemnitee shall promptly pay the Indemnitor an amount
equal to the amount of such Recovery up to the amount of the indemnity payment actually received by such Indemnitee, less any expense incurred by such Indemnitee in connection with such Recovery, but in no event shall any such payment exceed the
amount of such indemnity payment. 
  
 (g) None of the indemnified
parties shall be entitled to recover for any losses, costs, expenses, or damages arising under this Agreement or in connection with or with respect to the transactions contemplated in this Agreement, any amount in excess of the actual compensatory
damages, court costs and reasonable attorney fees and costs, suffered by such party, except that any punitive, special, exemplary and consequential damages recovered by a third party against a person entitled to indemnity pursuant to this Section
shall be included in the damages recoverable under such indemnity. Except as provided in the immediately preceding sentence, each indemnified party waives any right to recover punitive, special, exemplary or consequential damages arising in
connection with or with respect to the transactions contemplated in this Agreement. This Section shall not limit Sellers’ right to retain the Deposit as liquidated damages. 
  
 (h) Each person entitled to indemnification hereunder or otherwise to damages in connection with the transactions
contemplated in this Agreement shall take all reasonable steps to mitigate all losses, costs, expenses and damages after becoming aware of any event or circumstance that could reasonably be expected to Rive rise to any losses, costs, expenses and
damages that are indemnifiable or recoverable hereunder or in connection herewith. 
  
 (i) The provisions of this Section 7.5 shall survive Closing or the termination of this Agreement. 
  
 7.6 Buyer Indemnity. Buyer shall indemnify and hold harmless Sellers for any and all actions, suits, proceedings, demands, assessments, judgments, costs, and reasonable
legal and other expenses (including those incurred in all bankruptcy and probate matters) incident to Company’s activities after the Closing Date and not otherwise the responsibility of Sellers, PAC, or any of them under this Agreement.

  
 Article 8 
 KGH’s and Sellers’ Covenants. 
  
 8.1 Affirmative Covenants of KGH. From the Effective Date until Closing, KGH shall cause Company to: 
  
 (a) Make all payments of principal and interest required pursuant to all mortgages on all or a portion of the Property to be
made prior to Closing and perform all of the terms and provisions thereof on the part of the mortgagor to be performed. 
  
 (b) Keep the Improvements insured against loss or damage (including rental loss) by fire and all risks covered by an extended coverage endorsement on a
replacement cost basis. 

 (c) Perform the landlord’s obligations to the tenants of the Property and in the ordinary course of
business enforce the obligations of the tenants under their Leases in accordance with the terms of those Leases. 
 (d) Maintain the
Improvements as a first class apartment complex and make any necessary repairs or replacements to the Improvements required to keep the Improvements in good condition and repair, ordinary wear and tear excepted. 
 (e) Use its commercially reasonable efforts to negotiate leases for unleased units and garages for the rents and on the other terms described in the form
of lease attached as Exhibit H and to advertise and market those units and garages in accordance with the Company’s ordinary course of business. 
 (f) Put all units and garages that are vacant prior to Closing into move-in condition by Closing. “Move-in condition” means, as applicable, that all appliances and carpeting have been installed, the
appliances, fixtures, plumbing, equipment, doors, windows are in good working order, the carpeting is either new or has been cleaned to an acceptable level, and the unit or garage has been appropriately painted and cleaned. 
 (g) Pay all costs incurred or arising from the operation and maintenance of the Property prior to Closing and pay all costs required to be paid in
connection with all Leases executed prior to Closing for the leasing, preparation of space, concessions, and allowances to tenants, and brokerage commissions and finders fees incurred in entering into those Leases. 
 (h) Conduct its business in the ordinary course consistent with past practice and use normal efforts to preserve intact the business organization and
relationships of Company with third parties. 
  
 (i) Give Buyer,
its counsel, financial advisors, auditors, and other authorized representatives full access to the offices, properties, books, and records of Company, furnish Buyer, its counsel, financial advisors, auditors and other authorized representatives such
financial and operating data and other information relating to Company as such Persons reasonably may request, and instruct counsel and financial advisors of Company to cooperate with Buyer and its employees and agents in their investigations of
Company and the Property. 
  
 (j) Promptly notify Buyer of:

  
 (1) each notice or other communication from any Person
alleging that the consent of such Person is or may be required in connection with the transaction contemplated by this Agreement; 
  
 (2) each notice or other communication from any Governmental Authority in connection with the Property or the transaction contemplated by this Agreement;

  
 (3) all actions, suits, claims, investigations, or proceedings
commenced or, to the best of KGH’s knowledge, threatened against, relating to or involving, or otherwise affecting Company that, if pending on the Effective Date, would have been required to have been disclosed pursuant to Article 5, or that
relate to the consummation of the transaction contemplated by this Agreement; 

 (4) KGH’s breach of any obligation, representation, warranty, or covenant under this Agreement, or
any fact that would cause any representation or other fact in this Agreement to be inaccurate; and 
  
 (5) all material inaccuracies in the Due Diligence Documents. 
  
 (k) Timely pay and discharge, or cause to be timely paid and discharged, when due, all Taxes (including all Federal, state, and local sales, use,
property, employment, and payroll taxes), assessments, and other governmental charges imposed on Company, any or all Sellers, or all or a portion of the Property or Company’s Assets. 
  
 (l) Maintain in full force and effect its limited liability company existence, rights, franchises, and all Permits and
Trademarks owned or possessed by Company and necessary to the conduct of Company’s business, and comply with all applicable laws and regulations, whether now in effect or hereafter enacted or promulgated by any Governmental Authority having
jurisdiction. 
  
 (m) Pay all liabilities and fulfill all
obligations of the Company which are due and payable prior to Closing, except for those liabilities and obligations arising subsequent to Closing. (Notwithstanding the foregoing, KGH shall cause the Company to pay those commissions set forth on
Disclosure Schedule 6.18(e)). 
  
 (n) On or before the Closing
Date, pay the following amounts: 
  
 (i) all amounts required to
be paid by Sellers pursuant to Section 2.3 hereof; 
  
 (ii) any
and all amounts necessary to remove any lien, including mortgage liens, on the Property. 
  
 8.2 Affirmative Covenants of Sellers. From the Effective Date until Closing, each Seller shall promptly notify Buyer of: 
  
 (a) each notice or other communication from any Person received by such Seller alleging that the consent of such Person is or may be required in
connection with the transaction contemplated by this Agreement; 
  
 (b) each notice or other communication from any Governmental Authority received by such Seller of a violation or alleged violation of any law or regulation governing the use of the Property or relating to the transaction contemplated by
this Agreement; 
  
 (c) all actions, suits, claims, investigation
or proceedings, commenced or, to the best of the knowledge of such Seller, threatened against, relating to or involving, or otherwise affecting its business or membership interest in Company that, if pending on the Effective Date, would have been
required to have been disclosed pursuant to this Agreement, or that relate to the consummation of transaction contemplated by this Agreement; and 

 (d) a breach of any obligation, representation, warranty or covenant by such Seller under this Agreement,
or any fact that would cause any representation in this Agreement to be inaccurate. 
  
 8.3 Right of First Offer. For a period of two (2) years after Closing, if PAC, Sellers’ Agent, or any Affiliate of any of them wishes to develop or acquire multi-fancily housing property within ten (10) miles of the Property, it or
they shall offer to Buyer or its designated Affiliate the right to (i) provide equity to the project upon the same right offered to any third party, and (ii) purchase the project on the same basis offered to any third party. All parties must use
their best efforts to execute a memorandum of understanding in connection with any such new project within fifteen (15) days of such offer. If such memorandum of understanding is not executed within such time period, and if Buyer is not willing to
execute such memorandum of understanding within such time period, the offering party shall be free to obtain financing or sell the project free of the restrictions of this subsection. The requirements of this subjection shall not apply to those
projects listed on Disclosure Schedule 8.3 and shall survive Closing. 
  
 8.4
Negative Covenants. From the Effective Date to Closing, without the prior written consent of Buyer, Sellers shall not, and shall cause Company to not: 
  
 (a) Rent any apartment furnished or provide any services to any tenant except pursuant to a lease substantially in the form attached hereto as Exhibit H,
or provide any rent concession of any kind except for rent concessions of no greater than one (1) month’s rent for leases for a term of no less than twelve (12) months duration. 
  
 (b) Except in the ordinary course of business, waive any default in any material obligation under any Lease, cancel any
Lease, or accept the surrender of any Lease (except for default in the payment of rent or in performance of another material obligation). 
  
 (c) Incur any obligation (including any Contract) which will create a liability accruing after the Closing, except for obligations incurred to satisfy
maintenance requirements on commercially reasonable terms and which do not create a liability in excess of one thousand dollars ($1,000.00) in any individual case, or in excess of $10,000 in the aggregate, or which have been approved by Buyer
pursuant to Section 6.12. 
  
 (d) Enter into (i) any contract of
sale of all or a portion of the Property or grant any option to purchase or first refusal rights (except as provided in this Agreement), (ii) any additional mortgage, or (iii) any other document affecting title to all or a portion of the Property.

  
 (e) Make any direct or, indirect redemption, purchase, or
other acquisition of any of its equity interests. 
  
 (f) Create
any pension, profit sharing plan, bonus, deferred compensation, death benefit, or any other fringe benefit plan or program or pay any bonus, incentive compensation, extraordinary distributions, or other similar obligations. 
  
 (g) Amend its articles of organization or its operating agreement.

  
 (h) Issue any membership interests or equity interests of any
kind. 

 (i) Grant, confer, or award any option, warrant, or conversion right. 
  
 (j) Take or agree or commit to take any action that would make any
representation or warranty of on behalf of Company pursuant to this Agreement inaccurate in any material respect at, or as of any time prior to, the Closing. 
  
 (k) Omit or agree or commit to omit to take any commercially reasonable action necessary, to the best knowledge of KGH, to prevent any such representation
or warranty from being materially inaccurate in any respect at any such time. 
  
 Article 9 
 Buyer’s Representations and Warranties, 
  
 Buyer represents and warrants to Sellers the accuracy of the following statements:

  
 9.1 Buyer Capacity and Authority Relative to Agreement. Buyer has full legal
right and all requisite power and authority to execute, deliver, and perform this Agreement and every Ancillary Agreement to which it is a party. Buyer has provided its Federal Employer Identification Number to Seller’s Counsel. At Closing,
Buyer shall be qualified to do business as a foreign corporation in the State of Florida. The execution, delivery, and performance by Buyer of this Agreement and the Ancillary Agreements to which it is a party have been duly authorized by all
requisite corporate action of Buyer and will not: 
  
 (a) violate
any law, regulation, injunction, decree, or order of any court of competent, jurisdiction or Governmental Authority; 
  
 (b) conflict with the articles of incorporation of by-laws of Buyer or any other charter agreement of Buyer; or 
  
 (c) require any notice to, filing or registration with, or consent, license,
approval, or authorization of, any Governmental Authority or other Person. 
  
 9.2
Execution and Delivery; Binding Effect. This Agreement has been duly and validly executed and delivered by Buyer, and Buyer will have duly and validly executed each of the Ancillary Agreements to which it is a party before that Ancillary Agreement
is delivered to the other parties to this Agreement at the Closing. This Agreement is, and (when executed and delivered to the other parties at the Closing) each Ancillary Agreement to which Buyer is a party will be, valid, effective, and
enforceable by the other parties to this Agreement against Buyer in accordance with its terms. 
  
 9.3 Organization. Buyer is a corporation formed under the laws of the State of Delaware and has all requisite power and authority to own its property and to conduct its business, as now conducted. 

 Article 10 
 Conditions Precedent. 
  
 10.1
Buyer’s Closing Conditions. As conditions precedent to Buyer’s obligation to purchase the Membership Interests and to perform its other obligations at Closing: 
  
 (a) Each of the Company, KGH, PAC and Sellers shall have performed or observed all of the covenants in Article 8 and all
obligations required to be performed by each them on or prior to the Closing. 
  
 (b) The representations and warranties in this Agreement, in the Ancillary Agreements or in any certificate or other writing delivered by KGH, PAC and each individual Seller pursuant to this Agreement shall be true
and correct in all material respects on the date of the Closing with the same effect as though made on such date and Buyer shall have received a certificate or certificates from each of them to the foregoing effect. 
  
 (c) Buyer shall have received at Closing Title Company’s endorsement to
the Title Commitment (including the title commitment for Lender) deleting all conditions to the issuance of the Title Policy (including the title policy for Lender) and all exceptions which are not Permitted Encumbrances. 
  
 (d) Buyer shall have obtained a commitment for the financing of at least
eighty percent (80%) of the Purchase Price on terms including an interest rate at not more than 6% per annum, for a term of no less than ten (10) years and with an amortization schedule of thirty (30) years. 
  
 (e) Sellers shall tender or cause to be tendered to Buyer all of the items
required by Article 12. 
  
 (f) Buyer shall have received an
opinion of counsel to each of Sellers, in form and substance reasonably acceptable to Buyer and Buyer’s counsel and dated as of the Closing, opining that as to the respective Seller as of the Closing: (i) such Seller has the requisite power and
authority to enter into this Agreement and the assignment of its Membership Interest; (ii) the execution and delivery of this Agreement and the assignment of its Membership Interest has been duly authorized by all necessary company actions; (iii)
the execution and delivery of this Agreement and the assignment of its Membership Interest will not (A) violate any statute, law, rule, or regulation applicable to such Seller or any order, writ, judgment or decree of any court or any Governmental
Authority applicable to such Seller, (B) violate or conflict with any provisions of the organizational documents of such Seller, or (C) based solely on the certification of Sellers, conflict with or result in the breach of or default under any
material agreement, indenture, loan or credit agreement or any other agreement or instrument to which such Seller is a party; and (iv) based solely on the certification of Sellers, there is no action, lawsuit, proceeding, inquiry or investigation
before or by any court or Governmental Authority pending or threatened in writing against such Seller which in the opinion of such counsel would materially and adversely affect such Sellers ability to consummate the transaction contemplated by this
Agreement. 

 (g) Each Seller shall have waived any right of first refusal or such other encumbrance or similar right
that such Seller shall have with respect to the acquisition of the Membership Interests. 
  
 (h) Buyer shall have received certificates of good standing for each Seller, the general partner of Victoria, any other entity signing on behalf of any Seller and for Company from the state in which such entity is
organized all dated and certified within twenty (20) days of the date of the Closing. 
  
 (i) Buyer shall have received the Closing Balance Sheet from Sellers. 
  
 (j) At least 85% of the units on the Real Property shall have been leased and occupied by tenants who have entered into Qualified Leases and who are not
in default under the terms of their respective Qualified Leases. 
  
 (k) All financing statements described in Section 2.3(g) shall be terminated, released or discharged. 
  
 (l) All liens and claims described in Section 2.3(h) shall have been terminated, released, or discharged. 
  
 (m) Sellers shall have paid for, either prior to or at the time of Closing,
all items required in Section 2.3 of this Agreement to be paid for by Seller. 
  
 10.2 Commercially Reasonable Efforts. Sellers shall use commercially reasonable efforts to perform with reasonable dispatch the acts to be done by each of them to satisfy the conditions of Article 10. 
  
 10.3 Buyer’s Termination Option. Notwithstanding anything to the contrary in Section
10.1, if the condition set forth in Section 10.1(d) is not satisfied within forty-five (45) days after the Effective Date, Buyer or Sellers may exercise a Termination Option. If any of the other conditions set forth in Section 10.1 are not satisfied
at or before Closing, then Buyer may exercise a Termination Option within ten (10) days after the date by which such condition was to be satisfied, unless otherwise provided in this Agreement. 
  
 Article 11 
 Closing. 
  
 11.1
Closing and Closing Date. The date on which Closing shall occur shall be that date which is seventy five (75) days after the Effective Date, or such other date as the parties shall agree on in writing (“Closing Date”). In no event shall
the Closing Date be more than one hundred eighty (180) days after the Effective Date. Provided that all the conditions precedent to Buyer’s obligations to close under this Agreement have been satisfied (or waived by Buyer), the Closing shall
occur at the office of Baker & Hostetler LLP at 200 South Orange Avenue, Suite 2300, Orlando, FL 32802, or such other location reasonably required by Lender, at 10:00 A.M. on the Closing Date. Sellers and Buyer (or their representatives) shall
meet at that place in order to complete and execute documents. Sellers shall have senior management personnel for Company at the Real Property at least one day prior to the Closing Date to assist in the final physical and 

 financial inspection. Title Agent shall complete the Closing by recording and delivering the applicable deposited
documents and distributing the funds provided by Buyer and Escrow Agent pursuant to Buyer’s escrow instructions. Notwithstanding the foregoing, Buyer shall have the right to extend the Closing Date for fifteen (15) days, by: (i) providing
written notice of such extension to all other parties pursuant to Section 17.3 of this Agreement; and (ii) delivering to Escrow Agent an additional deposit of one hundred thousand dollars ($100.000.00) (“Extension Deposit”), which shall be
applied to the Purchase Price. The Extension Deposit shall be nonrefundable except as set forth in Section 1.2(b) hereof. 
  
 Article 12 
 Closing Obligations of
Parties. 
  
 12.1 Sellers’ and PAC’s Closing Obligations. At or
before 10:00 A.M. on the Closing Date, Sellers and PAC shall deliver, or cause to be delivered, to Buyer or Title Agent (as applicable) the following: 
  
 (a) Assignments of Membership Interest, substantially in the fours annexed as Exhibits C-E, by each applicable Seller conveying to Buyer all of
Sellers’ interests as members of Company, free of all liens and encumbrances. 
  
 (b) A certificate from each Seller and PAC, certifying the organizational documents of each Seller and PAC and stating that the representations and warranties of such Seller made pursuant to thus Agreement are true
and correct in all material respects at Closing with the same effect as though such representations and warranties had been made at and as of Closing. 
  
 (c) A rent roll in the form of the Contract Rent Roll, certified by KGH to be correct (“Closing Rent Roll”). 
  
 (d) The original or duplicate originals of all written service contracts
which Buyer has approved. 
  
 (e) Evidence of the due
authorization of the execution and performance of this Agreement, the Ancillary Agreements, and any and all other documents described in this Section 12.1. 
  
 (f) An affidavit as to the non-existence of parties in possession (except tenants under Leases) and construction liens, any instrument necessary to
evidence the completion of the construction of the Improvements, and any “gap” indemnities required by the Title Company to issue the endorsement described in Section 10.1(c). 
  
 (g) A certificate, in the form provided for in the regulations promulgated by the Treasury Department pursuant to §1445
of the Internal Revenue Code of 1986, as amended (“Code”) stating, under penalty of perjury, Sellers’ United States taxpayer identification numbers and that no Seller is a foreign Person. 
  
 (h) An affidavit, or other statement acceptable to Title Company, providing
the information necessary for the title agent to file the Form 1099 required by the provisions of Section 6045(e) of the Code. 

 (i) A Management and Leasing Contract in form and substance acceptable to Buyer executed by Property
Asset Management, LLC (“Property Manager”) (“Management and Leasing Contract”), Property Manager shall execute any and all documents reasonably required by Lender, including an assignment of the Management and Leasing Contract.

  
 (j) Any and all other documents required pursuant to this
Agreement, or as may be reasonably and timely requested by Buyer, to be delivered by or on behalf of Company, PAC or any or all Sellers. 
  
 (k) Possession of the Property, subject only to the Leases listed on the Closing Rent Roll and the Permitted Encumbrances. 
  
 (l) Proof of payment of all amounts necessary to pay off all existing liens
and debts secured by security interests covered by financing statements on all or any of the Property and Sellers’ interests in Company. 
  
 (m) Within two (2) days prior to Closing, a schedule of all tenant delinquencies at the Property. 
  
 (n) Incumbency Certificates of each Seller and PAC. 
  
 (o) Authorizing Resolutions of each Seller and PAC. 
  
 12.2 Buyer’s Closing Obligations. Before 10:00 A.M. on the Closing Date, Buyer shall:

  
 (a) Pay to Escrow Agent the sums due under this Agreement.

  
 (b) Provide to Sellers a certificate stating that the
representations and warranties of Buyer made pursuant to this Agreement are true and correct in all material respects at Closing with the same effect as though such representations and warranties had been made at and as of Closing. 
  
 12.3 Further Assurances, Assistance and Cooperation. In addition to the obligations required
to be performed by the parties at Closing, the parties agree to perform such other acts and to execute, acknowledge, and deliver subsequent to Closing such other instruments, documents and other materials, as each party reasonably may request in
order to enforce this Agreement or to effectuate the consummation of the transaction contemplated in this Agreement. On the request of either party (“Requesting Party”), the other party (“Other Party”) shall assist the Requesting
Party in the conduct or defense of any litigation involving or connected with Company or all or a portion of the Property (“Other Litigation”), except for matters for which the Requesting Party must indemnify the Other Party or which the
Requesting Party is obligated to conduct or defend pursuant to provisions in this Agreement other than this Section 12.3. The Other Party will be reimbursed for reasonable out-of-pocket expenses incurred in connection with Other Litigation, subject
to the prior written consent of the Requesting Party, which consent shall not unreasonably be withheld. This Section 12.3 shall survive Closing and the delivery of the deed, if any. 

 Article 13 
 Closing Adjustments and Payments. 
  
 13.1
Post-Closing Adjustments and Payments. 
  
 (a) Apportionment of
Rents, Taxes, Charges and Other Income and Expenses. The following shall be apportioned between the parties on a basis of a 12-month year, a 30-day month, as of 11:59 P.M. of the date preceding the Closing, as the case may be: 
  
 (i) All rents and other periodic charges, including any pet rents or other
recurring rents and fees (collectively, “Rent”), when, as, and if collected. The first monies collected on account of Rent after Closing shall be successively applied to the payment of (1) Rent due and payable in the month in which the
Closing occurs, (2) Rent due and payable in the months succeeding the month in which the Closing occurs and (3) Rent due and payable in the months preceding the month in which the Closing occurs, if any. Each party promptly shall account to the
other party for any Rent received after Closing to which the other party would be entitled under this Section 13.1(a)(i). Buyer shall have no obligation to collect delinquent Rent. 
  
 (ii) All real and personal property taxes and assessments and other taxes imposed on the owner of the Property, as owner,
and not paid by others. If the Closing shall occur before the taxes are fixed for the current tax year, the apportionment of such taxes shall be tentatively made on the basis of the best available information on the current assessment and tax rate
and shall be finally adjusted (and any necessary payments shall be made) within sixty (60) days after the tax bill shall be issued. The proration of undetermined taxes shall be based on a 365 day year and on the last available tax rate or valuation,
etc., whether or not officially certified, and maximum allowable discount. 
  
 (iii) Utility charges payable by the owner of the Property, including water and sewer charges. 
  
 (iv) Periodic income and operating expenses, including income and charges under the Contracts accepted by Buyer under this Agreement. 
  
 (b) Post-Closing Adjustment. The parties shall cooperate after Closing to
prorate any post-Closing income or charges to the Company, asset forth in Section 13.1(a). Except with respect to general real estate and personal property taxes, any proration which must be estimated at Closing shall be reprorated and finally
adjusted as soon as practicable after the Closing Date, but not later than one hundred eighty (180) days thereafter; otherwise all prorations shall be final, Utility bonds and other deposits posted for the Company’s benefit by any Seller, PAC
or an Affiliate of any of them shall be released at Closing, unless Buyer was debited for such bond or deposit at Closing. Buyer acknowledges it shall post replacement security, as may be legally required. Disclosure Schedule 13.1(b) lists the
amounts of all relevant bonds and deposits, with whom such bonds and deposits have been posted, the form of collateral and all other details relevant to each such bond and deposit. 
  
 (c) Buyer and Sellers acknowledge and agree that effective as of the Closing Date, Sellers may remove all or a portion of
the funds from any and all financial institution accounts owned by the Company and Buyer shall not receive a credit or other adjustment as a result of 

 such removal. Notwithstanding the foregoing, Sellers shall not remove any funds equal to tenant security deposits,
prepaid rents or amounts equal to credits granted to tenants, unless Buyer receives a credit against the Purchase Price at Closing for such amounts, Buyer acknowledges and agrees that Sellers shall retain all rights to Account No. 2000014593640 (the
“Bank Account”) held at Wachovia Bank National Association in Jacksonville, Florida in the name of Company post closing and Sellers shall use such account to make post closing adjustments and disbursements. Buyer shall open new accounts in
the name of Company after Closing. Sellers, PAC and KGH shall indemnify Buyer for any charges or claims against it as a result of Sellers’ use of the Bank Account after Closing. 
  
 This Section 13.1 shall survive Closing and the delivery of the deed, if any. 
  
 13.2 Holdbacks. 
  
 (a) Real Estate Taxes. Notwithstanding any other provision of this Agreement, Sellers shall place three hundred thousand and no/100 dollars ($300,000.00)
of the Purchase Price into escrow for the payment of any liabilities of Sellers under this Section 13.2(a). If the aggregate real estate tax liability relating to the Property exceeds nine hundred and no/100 dollars ($900.00) per unit (“Base
Tax Amount”) for the calendar year during which the Closing occurs, Sellers shall be liable to Buyer for the amount by which the actual real estate taxes exceeds the Base Tax Amount. Similarly, for calendar years 2003, 2004 and 2005, Sellers
shall be liable to Buyer for the excess of the actual real estate taxes paid relating to the Property exceeds the Base Tax Amount with the following annual adjustments: the Base Tax Amount for each year following the calendar year which includes the
Closing shall be increased by four percent (4%) over the Base Tax Amount for the preceding year. The balance, if any, shall be disbursed to Sellers on December 31, 2005, Sellers shall pay Buyer any amounts owed under this subsection within five (5)
days of when such amount is due. 
  
 (b) Indemnification Escrow.
Notwithstanding any other provision of this Agreement, Sellers shall place one million five hundred thousand and no/100 dollars ($1,500,000.00) of the Purchase Price into escrow for the payment of any liabilities of Sellers and PAC under Article 7.

  
 (c) Escrow Amount. At Closing, Sellers, out of Closing funds,
shall pay the Tax Escrow and the Indemnification Escrow into escrow with the Escrow Agent. The amounts paid into Escrow shall be held and released pursuant to the terms of an Escrow Agreement, attached hereto as part of Exhibit I. 
  
 (d) Survival. This Section 13.2 shall survive Closing. 
  
 13.3 Income and Expense Items. In addition to the foregoing specific apportionments, and
except as otherwise specifically designated in this Agreement, Sellers shall receive all other income relating to periods prior to the Closing and shall pay all operating expenses accrued or incurred prior to Closing and Buyer shall receive all
other income accruing on and after Closing and shall pay all other expenses incurred or accrued on and after Closing. If tenants are entitled to post-Closing credits or rent concessions in any form from Company, Sellers shall pay to Buyer an amount
equal to the total of such amount. Buyer shall receive a credit for the unamortized portion of all such rent concessions or any other special discounts that survive Closing. All items 

 of income or expense which should be apportioned and which are not or cannot be apportioned at Closing shall be duly
apportioned as soon as determined and in accordance with Section 13.1(b). This Section 13.3 shall survive Closing. 
  
 13.4 Buyer Credits. Buyer shall receive a credit at Closing in an amount equal to the sum of: 
  
 (a) prepaid rents and security deposits, 
  
 (b) the interest on the Deposit, and 
  
 (c) any credit due to Buyer pursuant to Section 1.3.1 of this Agreement and calculable as of the Closing Date. 

 
 13.5 Costs. No deed shall be recorded in connection with this transaction Buyer shall pay
all documentary stamps, intangible taxes, and recording fees with respect to any of its financing arrangements. Each party shall bear its own attorneys fees and costs in connection with this Agreement, except as otherwise provided in this Agreement.
All other charges payable pursuant to this Agreement shall be paid as set forth in the particular provision describing such charges. 
  
 Article 14 
 Casualty and
Condemnation. 
  
 14.1 Risk of Loss. Risk of loss up to and including the
Closing Date shall be borne by Sellers. In the event of any material damage to or destruction of all or a portion of the Property, Buyer may, at its option, by notice to Sellers given within ten (10) business days after Sellers notify Buyer of such
damage or destruction (and if necessary the Closing Date shall be extended to give Buyer the full ten (10) business day period to make such election): (i) terminate this Agreement and Sellers shall cause Escrow Agent immediately to return the
Deposit to Buyer, or (ii) proceed under this Agreement, receive any and all insurance proceeds (including any and all rent loss insurance applicable to any period on and after the Closing Date) due Sellers or Company as a result of such damage or
destruction and assume responsibility for such repair, and Buyer shall receive a credit at Closing for any deductible, uninsured, or coinsured amount under such insurance policies. If no notice is given by Buyer after receipt of proper notice from
Sellers, Buyer shall be deemed to have elected to terminate this Agreement. If Buyer elects (ii) above, Buyer may extend the Closing Date for up to an additional thirty (30) business day period in which to obtain insurance settlement agreements with
the Company’s insurers, and Sellers will cooperate with Buyer in obtaining the insurance proceeds and such agreements from the Company’s insurers, If all or a portion of the Property is not materially damaged, then Buyer shall not have the
right to terminate this Agreement, and at Closing Buyer shall receive any and all insurance proceeds (including any rent loss insurance applicable to any period on and after the Closing Date) due the Company as a result of such damage or destruction
and assume responsibility for such repair, and Buyer shall receive a credit at Closing for any deductible, uninsured, or coinsured amount under said insurance policies. “Material damage” and “materially damaged” means damage (x)
reasonably estimated to exceed two hundred fifty thousand dollars ($250,000.00), unless otherwise required by Lender, or (y) which, in Buyer’s reasonable estimation, will take longer than ninety (90) days to repair. 

 14.2 Condemnation. If prior to Closing, condemnation or eminent domain proceedings are commenced against all or any
portion of the Property, or if Sellers receive a notice that such proceedings are contemplated, Sellers shall give Buyer written notice thereof, at which point Buyer shall have the option to (i) terminate this Agreement by giving a Termination
Notice, in which event Sellers shall cause Escrow Agent immediately to return the Deposit to Buyer, or (ii) proceed to Closing in accordance with this Agreement, in which event the net award to which Sellers shall be entitled shall be paid or
assigned by Sellers to Buyer at Closing. If Buyer does not exercise its Termination Option within thirty (30) days after receiving notice of the condemnation proceedings, Buyer will be deemed to have elected to proceed to Closing as provided in
clause (ii) above. 
  
 14.3 Binding Effect. This Article 14 is an express
provision with respect to destruction and eminent domain and is intended to supersede any applicable statute regarding risk of loss. 
  
 Article 15 
 Brokerage.

  
 15.1 Broker. Neither party has had any contact or dealings regarding all or a
portion of the Property, or any communication in connection with the subject matter of this transaction, through any licensed real estate broker or other Person who can claim a right to a commission or finder’s fee as a procuring cause of the
sale contemplated in this Agreement. Buyer shall indemnify, save harmless, and defend Sellers from any liability, cost, or expense (including reasonable attorneys’ fees, and including those incurred in all bankruptcy and probate proceedings)
arising out of or connected with any claim for any commission or compensation made by any Person claiming to have been retained or contacted by Buyer in connection with this transaction. Sellers shall indemnify, save harmless, and defend Buyer from
any liability, cost, or expense (including reasonable attorneys’ fees, and including those incurred in all bankruptcy and probate proceedings) arising out of or connected with any claim, for any commission or compensation made by any Person
claiming to have been retained or contacted by Sellers in connection with this transaction. This Article shall survive the Closing, the delivery of the deed (if any), and any termination of this Agreement. 
  
 Article 16 
 Defaults. 
  
 16.1
Sellers’ Default. If the sale of the Membership Interests under this Agreement shall fail to close due to Sellers’ default or breach, Buyer’s sole and exclusive remedies (except for Sellers’ indemnity obligations under this
Agreement which expressly survive such termination) shall be either to (i) terminate this Agreement by exercise of a Termination Option, at which point the Deposit shall be returned to Buyer (at which time this Agreement shall be null and void and
neither party shall have any further rights or obligations under this Agreement, except as expressly set forth in this Agreement), or (ii) seek specific performance of this Agreement. Buyer shall not exercise a Termination Option due to
Sellers’ default or breach unless Buyer gives Sellers notice of such default or breach and such default or breach is not cured within ten (10) days of the provision of such notice. 

 16.2 Buyer’s Default. If the sale of the Membership Interests under this Agreement shall fail to close due to
Buyer’s default or breach, Sellers’ sole and exclusive remedy, shall be to terminate this Agreement by exercise of a Termination Option and to receive the Deposit, which shall be forfeited to Seller as liquidated damages in accordance with
Section 16.3 below (at which time this Agreement shall be null and void and neither party shall have any further rights or obligations under this Agreement except as expressly set forth in this Agreement.). 
  
 16.3 EXCLUSIVE REMEDY FOR BUYER’S DEFAULT IN FAILING TO CLOSE. BUYER AND SELLERS HEREBY
ACKNOWLEDGE AND AGREE THAT THE AMOUNT OF SELLERS’ DANLAGES IN THE EVENT OF A BREACH OF THIS AGREEMENT BY BUYER WOULD BE DIFFICULT OR IMPOSSIBLE TO DETERMINE AND THE AMOUNT OF THE DEPOSIT IS THE PARTIES’ BEST AND MOST ACCURATE ESTIMATE OF
THE DAMAGES SELLERS WOULD SUFFER IF THE TRANSACTION PROVIDED FOR. IN THIS AGREEMENT FAILS TO CLOSE AND THAT SUCH ESTIMATE IS REASONABLE TINDER. THE CIRCUMSTANCES EXISTING AS OF THE EFFECTIVE DATE AND UNDER THE CIRCUMSTANCES THAT SELLERS AND BUYER
REASONABLY ANTICIPATE WOULD EXIST AT THE TIME OF SUCH BREACH. BUYER AND SELLERS AGREE THAT SELLERS’ RIGHTS UNDER. THE PRECEDING SENTENCE SHALL BE THE SOLE REMEDIES OF SELLERS IF THIS TRANSACTION FAILS TO CLOSE BECAUSE OF A BREACH OF THIS
AGREEMENT BY BUYER. TO CONFIRM THE FOREGOING. BUYER AND SELLERS HEREBY INITIAL THIS AGREEMENT AS FOLLOWS: 
  

			
	 Buyer
                            
	  	 Seller (KGH)
                            

		
	 	  	 Seller (Osprey)
                        

		
	 	  	 Seller (Victoria)
                        

  
 Article 17

 Miscellaneous. 
  
 17.1 Survival. The representations, warranties, undertakings, covenants and indemnifications of Sellers in this Agreement, any Ancillary Agreement, or in any other
document or certificate delivered by Sellers in connection herewith shall survive the Closing for the Survival Period, and no action or proceeding thereon shall be valid or enforceable, at law or in equity, if a legal proceeding is not commenced
within that time. 
  
 17.2 Business Days and Time Periods. If the day for
performance of any action described in this Agreement shall fall on a Saturday, Sunday, or a day on which the banks are closed in the state in which the Real Property is located, the time for such action shall be extended to the next business day
after such Saturday, Sunday, or day in which the banks are closed. 

 17.3 Notices. Unless otherwise specified in this Agreement, all notices, demands, elections, requests, or other
communications that any party to this Agreement may desire or be required to give under this Agreement shall be in writing and shall be given by hand delivery or by a recognized overnight courier service providing confirmation of delivery, addressed
as follows: 
  

			
	 If to Sellers:
	  	 KGH Corporation
 c/o P.A.C. Land Development
Corporation
 730 Bonnie Brae Street
 Winter Park, FL
32789
 Attention: Thomas L. Cavanaugh

		
	 and to:
	  	 Victoria Place Apartments, Ltd.
 c/o P.A.C. Land
Development Corporation
 730 Bonnie Brae Street
 Winter Park, FL
32789
 Attention: Thomas L. Cavanaugh

		
	 and to:
	  	 Osprey Capital, Inc.
 c/o Douglas McNeill

1400 Marsh Landing Parkway Suite 109
 Jacksonville Beach, FL
32250

		
	 and to:
	  	 P.A.C. Land Development Corporation
 730 Bonnie Brae
Street
 Winter Park, FL 32789
 Attention: Thomas L.
Cavanaugh

		
	 With a copy to:
	  	 Holland & Knight, LLP
 200 South Orange Ave.,
Suite 2600
 Orlando, Florida 32801
 Attention: Lee S. Smith,
Esq.

		
	 and to:
	  	 Adele Wailand, Esq.
 Case, Pomeroy & Company,
Inc.
 529 Fifth Avenue, Suite 1600
 New York, NY
10017

		
	 If to Sellers’ Agent:
	  	 Thomas L. Cavanaugh
 730 Bonnie Brae Street

Winter Park, FL 32789

		
	 If to Buyer:
	  	 Bresler & Reiner, Inc.
 11140 Rockville Pike,
Suite 620
 Rockville, MD 20852
 Attention: Sidney M. Bresler,
CEO

		
	 With a copy to:
	  	 Shaiman, Drucker, Beckman & Sobel, LLP
 1845
Walnut Street, 14th Floor
 Philadelphia, P A 19103
 Attn: S.
Laurence Shaiman, Esq.

			
	 and a copy to:
	  	 Baker & Hostetler LLP
 200 South Orange Avenue,
Suite 2300
 Orlando, Florida 32801
 Attention: Karen Stedronsky,
Esq.

		
	 If to Escrow Agent:
	  	 Holland & Knight, LLP
 200 South Orange Ave.,
Suite 2600
 Orlando, Florida 32801

  
 Each Person shall have the right to
designate another address or change in address by written notice to the others in the manner prescribed in this Agreement. All notices given and received pursuant to this Section shall be deemed to have been given (i) if delivered by hand, on the
date of delivery or on the date delivery was refused by the addressee, or (ii) if delivered by overnight courier, on the date of delivery as established by the return receipt or courier service confirmation (or the date on which the return receipt
or courier service confirms that acceptance of delivery was refused by the addressee). Counsel named above for a party may give notices for that party with the same force and effect as if given by the party. 
  
 17.4 Escrow Provisions. The escrow of the Deposit and the Escrow Amount shall be subject to
the provisions set forth in the two Escrow Agreements attached hereto as composite Exhibit I. 
  
 17.5 Entire Agreement. This Agreement constitutes the entire understanding between the parties and may not be changed orally but only by an agreement in writing signed by the party against whom enforcement of any
waiver, change, modification, or discharge is sought. 
  
 17.6 Governing Law. This
Agreement is, and shall be deemed to be, a contract entered into under and pursuant to the laws of the state of Florida and shall be in all respects governed, construed, applied, and enforced in accordance with the laws of Florida. Jurisdiction and
venue shall be proper only in Orange County, Florida. 
  
 17.7 Successors and
Assigns. Subject to following provisions, this Agreement shall be binding on and inure to the benefit of the parties and their respective permitted successors and assigns. Without the prior written consent of Buyer, no Seller shall, directly or
indirectly, assign this Agreement or any of its rights under this Agreement. Any attempted assignment in violation of this Agreement shall, at the election of Buyer, be of no force or effect and shall constitute a default by Sellers. Buyer may
assign its rights under this Agreement subject to the following conditions: (a) the assignment must be to a corporation, limited partnership, limited liability company, or other entity controlled by Buyer; (b) such assignee must assume all of
Buyer’s obligations under this Agreement, but Bresler & Reiner, Inc. shall not be released from any obligations under this Agreement; and (c) at least five (5) days prior to the proposed assignment, Buyer shall provide Sellers with notice
thereof and evidence that the foregoing conditions are satisfied. 
  
 17.8 Waiver.
The excuse or waiver of the performance by a party of any obligation of the other party under this Agreement shall only be effective if evidenced by a written statement signed by the party so excusing or waiving. No delay in exercising any right or
remedy shall 

 constitute a waiver thereof, and no waiver by Sellers or Buyer of the breach of any covenant or condition of this
Agreement shall be construed as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of this Agreement. 
  
 17.9 Counterparts. This Agreement may be executed in any number of counterparts and it shall be sufficient that the signature of each party appear on one or more such
counterparts. All counterparts collectively shall constitute a single agreement. 
  
 17.10 Attorneys’ Fees, Costs. In the event of a judicial or administrative proceeding or action by one party against the other party with respect to the interpretation or enforcement (including specific performance) of this Agreement,
the prevailing party shall be entitled to recover reasonable costs and expenses including reasonable attorneys’ fees, costs and expenses (including those incurred in all bankruptcy and probate matters). The prevailing party shall be determined
by the court based on an assessment of which party’s major arguments or position prevailed. 
  
 17.11 Headings; Word Meaning. The headings in this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any provisions of this Agreement. Words such as
“herein”, “hereinafter”, “hereof” and “hereunder” when used in reference to this Agreement, refer to this Agreement as a whole and not merely to a subdivision in which such words appear, unless the context
otherwise requires. The singular shall include the plural and the masculine gender shall include the feminine and neuter, and vice versa, unless the context otherwise requires. The term “include” and similar terms (e.g., includes,
including, included, comprises, comprising, such as e.g., and for example), when used as part of a phrase including one or more specific items, are used by way of example and not of limitation. 
  
 17.12 Time of the Essence. Time is of the essence of this Agreement and all covenants and
deadlines under this Agreement. Without limiting the foregoing, Buyer and Sellers hereby confirm their intention and agreement that time shall be of the essence of each and every provision of this Agreement, notwithstanding any subsequent
modification or extension of any date or time period provided under this Agreement. 
  
 17.13 Construction of Agreement. This Agreement shall not be construed more strictly against one party than against the other merely by virtue of the fact that it may have been prepared primarily by counsel for one of the parties, it being
recognized that both Buyer and Sellers have contributed substantially and materially to the preparation of this Agreement. 
  
 17.14 Severability. The parties intend and believe that each provision in this Agreement comports with all applicable local, state, and federal laws and judicial
decisions. If, however, any provision in this Agreement is found by a court of competent, jurisdiction to be in violation of any applicable local, state, or federal law, statute, ordinance, administrative or judicial decision, or, public policy, or
if in any other respect such a court declares any such provision to be illegal, invalid, unlawful, void, or unenforceable as written, then it is the intent of all parties that, consistent with and with a view toward preserving the economic and legal
arrangements among the parties as expressed in this Agreement, such provision shall be given force and effect to the fullest possible extent, and that the remainder of this Agreement shall be construed as if such illegal, invalid, unlawful, void, or
unenforceable provision were not in this Agreement, and that the rights, obligations, and interests of the parties under the remainder of this Agreement shall continue in full force and effect. 

 17.15 No Implied Agreement. Neither Sellers nor Buyer shall have any obligations in connection with the transaction
contemplated by this Agreement unless both Sellers and Buyer, each acting in its sole discretion, elects to execute and deliver this Agreement to the other party. No correspondence, course of dealing, or submission of drafts or final versions of
this Agreement between Sellers and Buyer shall be deemed to create any binding obligations in connection with the transaction contemplated by this Agreement, and no contract or obligation on the part of Sellers or Buyer shall arise unless and until
this Agreement is fully executed by both Sellers and Buyer. Once executed and delivered by Sellers and Buyer, this Agreement shall be binding on them notwithstanding the failure of Escrow Agent or any broker or other Person to execute this
Agreement. 
  
 17.16 Radon Gas Disclosure. Chapter 88-285, Florida Statutes,
requires the following notice to be provided with respect to the Agreement for sale and purchase of any building, or a rental agreement for any building: “RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated
in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and
radon testing may be obtained from your county public health unit.” 
  
 17.17
Exchange. Sellers agree to cooperate with Buyer if Buyer elects to cause the sale or purchase of Company or the Property to be part of a tax free exchange under Section 1031 of the Code. Sellers further agree to execute at or prior to Closing such
documents as may be reasonable, necessary, or appropriate to cause this Agreement to be assigned to a qualified intermediary, to be identified as a replacement property, or as shall otherwise be proposed by the attorneys for Buyer or by a qualified
exchange intermediary, provided that Sellers do not thereby incur additional expense (other than such party’s attorneys’ fees) or liability. 
  
 17.18 Facsimile. For all purposes under this Agreement, including the negotiation and finalizing of this Agreement and Closing, each document transmitted by facsimile
machine shall be treated, in all manner and respect, as an original document and the signature of any party on each document transmitted by facsimile machine shall be considered, for all purposes, as an original signature (except for any documents
or instruments which must be recorded). Each such document sued and transmitted by facsimile shall be considered to have the same binding legal effect as an original signed document. At the request of either party, any document sent by facsimile
machine shall be re-executed and an original signature sent to the requesting party. Each party agrees not to raise an objection to any document that was transmitted by facsimile machine or as a defense that any document is not binding on the party
who signed the document and transmitted it by facsimile machine. The parties further agree that any document signed and transmitted by e-mail shall not be binding on either party until an original signed copy of such document or a facsimile copy of
such document shall have been exchanged by the parties. 
  
 17.19 Restatement of
Operating Agreement and Articles of Organization. Immediately following the Closing, Buyer, at Buyer’s expense, shall amend and restate the Operating Agreement of the Company and file amended Articles of Organization evidencing removal of
Manager as manager of the Company. Buyer shall provide Sellers’ Agent with a copy of such filing. 
  
 [remainder of page left blank] 
  

 In witness whereof, Sellers and Buyer have duly executed this Agreement as of the date and year first above written.

  

							
	 Witnesses:
	 	 Victoria Place Apartments, Ltd.,
a Florida limited partnership

			
	
 (as to witness)
	 	 By:
	 	 KGH Corporation, a Florida corporation
as its general partner

				
	 	 	 	 	 By:
	 	 /s/ Thomas L. Cavanaugh

	 /s/ Karen Stedronsky

	 	 	 	 	 	 Name: Thomas L. Cavanaugh
 Title: President

	 (as to witness)
	 	 	 	 	 	 
	 	 	 Date:
	 	 5/6/03

		
	
 (as to witness)
	 	 KGH Corporation, a Florida corporation
as its general partner

				
	 	 	 	 	 By:
	 	 /s/ Thomas L. Cavanaugh

	 /s/ Karen Stedronsky

	 	 	 	 	 	 Name: Thomas L. Cavanaugh
 Title: President

	 (as to witness)
	 	 	 	 
	 	 	 Date:
	 	 5/6/03

		
	
 (as to witness)
	 	 P.A.C. Land Development Corporation

			
	 	 	 By:
	 	 /s/ Thomas L. Cavanaugh

	 /s/ Karen Stedronsky

	 	 	 	 Name: Thomas L. Cavanaugh
 Title: President

	 (as to witness)
	 	 	 	 
	 	 	 Date:
	 	 6 May 2003

		
	
 (as to witness)
	 	 Bresler & Reiner, Inc., a Delaware
corporation

				
	 	 	 	 	 By:
	 	 /s/ Sidney M. Bressler, CEO

	 /s/ Karen Stedronsky

	 	 	 	 	 	 Name: Sidney M. Bresler
 Title: CEO

	 (as to witness)
	 	 	 	 
	 	 	 Date:
	 	 May 6, 2003

  
 [signatures continued on following
page] 

 [continuation of signature page] 
  

					
	 Witnesses:
	 	Osprey Capital, Inc., a Delaware corporation
	 (2 as to each)
	 	 	 	 
			
	 	 	By:	 	 /s/ Douglas W. McNeill

	
	 	 	 	Name: Douglas W. McNeill
	 (as to witness)
	 	 	 	Title: President
			
	 /s/ Norma J. Johnson

	 	Date:	 	May 6, 2003
	 (as to witness)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}]]