Document:

EX-10.1

 Exhibit 10.1 

 
 STANDBY PURCHASE AGREEMENT 

by and among 
 TRADE
STREET RESIDENTIAL, INC., 
 SENATOR GLOBAL OPPORTUNITY FUND LP, 

and 
 SENATOR GLOBAL
OPPORTUNITY INTERMEDIATE FUND L.P. 
 Dated as of November 12, 2013 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE I CERTAIN DEFINITIONS
	  	 	1	  
	Section 1.1	  	Certain Definitions.	  	 	1	  
	 ARTICLE II THE RIGHTS OFFERING AND BACKSTOP COMMITMENT
	  	 	7	  
	Section 2.1	  	The Rights Offering.	  	 	7	  
	Section 2.2	  	Backstop Commitment.	  	 	9	  
	 ARTICLE III ADDITIONAL PURCHASE COMMITMENT
	  	 	10	  
	Section 3.1	  	Additional Purchase Commitment.	  	 	10	  
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	 	11	  
	Section 4.1	  	Organization.	  	 	11	  
	Section 4.2	  	Authorization.	  	 	11	  
	Section 4.3	  	Capitalization.	  	 	12	  
	Section 4.4	  	Valid Issuance of Shares.	  	 	12	  
	Section 4.5	  	Non-Contravention; Governmental Authorizations.	  	 	13	  
	Section 4.6	  	Litigation.	  	 	14	  
	Section 4.7	  	Proxy Statement	  	 	14	  
	Section 4.8	  	Compliance with Laws; Permits.	  	 	14	  
	Section 4.9	  	Environmental Matters	  	 	14	  
	Section 4.10	  	Periodic Filings; Financial Statements.	  	 	15	  
	Section 4.11	  	Absence of Certain Changes.	  	 	16	  
	Section 4.12	  	Brokers and Finders.	  	 	17	  
	Section 4.13	  	Taxes.	  	 	17	  
	Section 4.14	  	Integration; Other Issuances of Shares.	  	 	17	  
	Section 4.15	  	No General Solicitation.	  	 	17	  
	Section 4.16	  	Offering; Exemption.	  	 	18	  
	Section 4.17	  	No Manipulation or Stabilization.	  	 	18	  
	Section 4.18	  	Investment Company Act.	  	 	18	  
	Section 4.19	  	Employee Relations.	  	 	18	  
	Section 4.20	  	REIT Status.	  	 	18	  
	Section 4.21	  	Insurance.	  	 	18	  
	Section 4.22	  	Acknowledgment Regarding Investor’s Purchase of Shares.	  	 	19	  
	Section 4.23	  	No Additional Agreements.	  	 	19	  
	Section 4.24	  	Title.	  	 	19	  
	Section 4.25	  	Contracts.	  	 	19	  
	Section 4.26	  	Employee Benefits.	  	 	20	  
	Section 4.27	  	Takeover Statutes	  	 	20	  
	Section 4.28	  	No Further Reliance.	  	 	20	  
	Section 4.29	  	Off Balance Sheet Arrangements.	  	 	20	  
	Section 4.30	  	Transactions With Affiliates.	  	 	21	  
	Section 4.31	  	Acknowledgement Regarding Investors’ Trading Activity.	  	 	21	  
	Section 4.32	  	Shell Company Status	  	 	21	  
	Section 4.33	  	HSR Matters	  	 	21	  

  

  
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 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
	 ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE INVESTOR
	  	 	21	  
	Section 5.1	  	Organization and Authority.	  	 	21	  
	Section 5.2	  	Authorization.	  	 	22	  
	Section 5.3	  	Non-Contravention; Governmental Authorization.	  	 	22	  
	Section 5.4	  	Compliance with Laws.	  	 	22	  
	Section 5.5	  	Securities Act Compliance.	  	 	23	  
	Section 5.6	  	Short Sales.	  	 	23	  
	Section 5.7	  	Market Stabilization.	  	 	23	  
	Section 5.8	  	Control.	  	 	23	  
	Section 5.9	  	Financial Capability.	  	 	24	  
	Section 5.10	  	Brokers and Finders.	  	 	24	  
	Section 5.11	  	Information.	  	 	24	  
	Section 5.12	  	Confidentiality.	  	 	24	  
	Section 5.13	  	Investor Activities.	  	 	24	  
	Section 5.14	  	No Further Reliance.	  	 	24	  
	 ARTICLE VI CONDITIONS TO CLOSING
	  	 	25	  
	Section 6.1	  	Conditions to the Obligations of the Company and the Investor.	  	 	25	  
	Section 6.2	  	Conditions to the Obligations of the Company.	  	 	25	  
	Section 6.3	  	Conditions to the Obligations of the Investor.	  	 	26	  
	 ARTICLE VII COVENANTS
	  	 	27	  
	Section 7.1	  	Stockholder Approvals; Proxy Statement	  	 	27	  
	Section 7.2	  	Conduct of the Business.	  	 	28	  
	Section 7.3	  	Efforts.	  	 	28	  
	Section 7.4	  	Financing; Exclusivity.	  	 	29	  
	Section 7.5	  	Periodic Filings; Financial Statements	  	 	29	  
	Section 7.6	  	Publicity.	  	 	30	  
	Section 7.7	  	Share Listing.	  	 	30	  
	Section 7.8	  	Tax Related Covenants.	  	 	30	  
	Section 7.9	  	Rule 144.	  	 	30	  
	Section 7.10	  	Confidentiality.	  	 	30	  
	Section 7.11	  	Market Stabilization.	  	 	31	  
	Section 7.12	  	Incurrence of Indebtedness	  	 	31	  
	 ARTICLE VIII TERMINATION
	  	 	31	  
	Section 8.1	  	Termination.	  	 	31	  
	Section 8.2	  	Effects of Termination.	  	 	32	  
	 ARTICLE IX INDEMNIFICATION AND CONTRIBUTION
	  	 	33	  
	Section 9.1	  	Indemnification.	  	 	33	  

  
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 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
	 ARTICLE X MISCELLANEOUS
	  	 	35	  
	Section 10.1	  	Interpretation	  	 	35	  
	Section 10.2	  	Survival.	  	 	35	  
	Section 10.3	  	Legends.	  	 	35	  
	Section 10.4	  	Notices.	  	 	36	  
	Section 10.5	  	Further Assurances.	  	 	36	  
	Section 10.6	  	Amendments and Waivers.	  	 	37	  
	Section 10.7	  	Fees and Expenses.	  	 	37	  
	Section 10.8	  	Successors and Assigns.	  	 	37	  
	Section 10.9	  	Governing Law.	  	 	37	  
	Section 10.10	  	Jurisdiction.	  	 	37	  
	Section 10.11	  	Waiver Of Jury Trial.	  	 	38	  
	Section 10.12	  	Entire Agreement.	  	 	38	  
	Section 10.13	  	Effect of Headings and Table of Contents.	  	 	38	  
	Section 10.14	  	Severability.	  	 	38	  
	Section 10.15	  	Counterparts; No Third Party Beneficiaries.	  	 	38	  
	Section 10.16	  	Remedies.	  	 	38	  
	Section 10.17	  	Adjustment to Shares.	  	 	40	  
	Section 10.18	  	Notices and Consents.	  	 	40	  

 Annexes 
 Annex I
– Stockholders Agreement 
 Annex II – Press Release 

Annex III – Investor Allocation Schedule 
 Annex IV –
Draft of Form 10-Q for the period ended September 30, 2013 
 Annex V – Board Policy 

  
 -iii- 

 STANDBY PURCHASE AGREEMENT dated as of November 12, 2013 (this
“Agreement”) by and among Trade Street Residential, Inc., a Maryland corporation (the “Company”), and the investment entities managed or advised by Senator Investment Group LP, a Delaware limited partnership (the
“Adviser”), as set forth on the signature pages hereto (each, an “Investor” and collectively, the “Investors”). 

BACKGROUND 

WHEREAS, the Company has proposed to offer and sell certain shares (the “Shares”) of Common Stock (as
defined below) pursuant to a Rights Offering (as defined below), on the terms and subject to the conditions set forth herein; 

WHEREAS, the Company desires that the Investors provide, and the Investors have agreed to provide, a Backstop Commitment (as defined
below) to the Rights Offering, on the terms and subject to the conditions set forth herein; 
 WHEREAS, the Company desires to
offer and the Investors have agreed to accept, the Additional Purchase Commitment (as defined below) providing for the Investors to purchase additional shares of Common Stock, on the terms and subject to the conditions set forth herein; and

 WHEREAS, in connection with their purchase of Common Stock pursuant to the Backstop Commitment and the Additional Purchase
Commitment, the Investors wish to receive certain additional rights related to its Common Stock, and the Company desires to grant such rights on the terms and subject to the conditions set forth herein; 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the receipt and sufficiency of
which are hereby acknowledged, the parties to this Agreement hereby agree as follows: 
 ARTICLE I

 CERTAIN DEFINITIONS 

Section 1.1 Certain Definitions. As used in this Agreement, the terms have the following meanings: 

“10b-5 Representation” shall have the meaning set forth in Section 2.1(e). 

“Acquired Shares” shall have the meaning set forth in Section 3.1(a). 

“Acquisition Transaction” means a (A) a merger, joint venture, partnership, consolidation, dissolution, liquidation, tender
offer, recapitalization, reorganization, share exchange, business combination or similar transaction involving the Company or (B) any other direct or indirect acquisition involving 50% or more of the total voting power of the Company, or all or
substantially all of the consolidated total assets (including equity securities of its Subsidiaries) of the Company. 
 “Additional
Acquired Shares” shall have the meaning set forth in Section 3.1(a). 
 “Additional Purchase Commitment” shall have the
meaning set forth in Section 3.1(a). 
 “Additional Purchase Commitment Fee” shall have the meaning set forth in
Section 3.1(c). 

  
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 “Additional Purchase Commitment Fee Shares” shall have the meaning set forth in
Section 3.1(c). 
 “Adviser” shall have the meaning set forth in the Preamble. 

“Affiliate” of any Person means any other Person directly or indirectly Controlling or Controlled by or under direct or indirect
common Control with such Person; provided, for purposes of this Agreement, the Company and its Subsidiaries shall not be deemed to be Affiliates of the Investor. 

“Affiliated Purchaser” shall have the meaning set forth in Section 10.8. 

“Aggregate Offered Shares” shall have the meaning set forth in Section 2.1(f). 

“Agreement” shall have the meaning set forth in the Preamble. 

“Agreements and Instruments” shall have the meaning set forth in Section 4.5(a). 

“Backstop Acquired Shares” shall have the meaning set forth in Section 2.2(a). 

“Backstop Commitment” shall have the meaning set forth in Section 2.2(a). 

“Backstop Commitment Fee” shall have the meaning set forth in Section 2.2(d). 

“Backstop Commitment Fee Shares” shall have the meaning set forth in Section 2.2(d). 

“Beneficial Ownership” means, with respect to any Security, the ownership of such Security by any “Beneficial Owner,” as
such term is defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that, in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such
“person” will be deemed to have beneficial ownership of all Securities that such “person” has the right to acquire by conversion or exercise of other Securities, whether such right is currently exercisable or is exercisable only
after the passage of time. The terms “Beneficially Own,” “Beneficially Owned” and “Beneficial Owner” shall have correlative meaning. 

“Benefit Plan” shall have the meaning set forth in Section 4.26(a). 

“Board” means the board of directors of the Company. 

“Business Day” means any day other than a Saturday, Sunday or one on which banks are authorized to close in New York, New York. 

“Capital Stock” means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of
or interests in (however designated) stock or equity securities issued by the Company. 
 “CERCLA” shall have the meaning set
forth in Section 4.9(b). 
 “Change of Control Limitation” shall have the meaning set forth in Section 3.2. 

“Closing” shall have the meaning set forth in Section 2.2(b). 

“Closing Date” shall have the meaning set forth in Section 2.2(b). 

“Code” means the United States Internal Revenue Code of 1986, as amended. 

  
 2 

 “Common Stock” means the common stock, par value $0.01 per share, of the Company. 

“Company” shall have the meaning set forth in the Preamble. 

“Company Liquidated Damages Amount” shall have the meaning set forth in Section 10.16(a). 

“Company SEC Documents” shall have the meaning set forth in Section 4.9(a). 

“Company Stockholder Approval” means, approval, by a majority of the votes cast at a duly constituted meeting of the Company’s
stockholders, of the Company’s issuance of the Acquired Shares to the Investor, and the possible change of control of the Company as a result of the Company’s issuance of the Acquired Shares to the Investor. 

“Confidentiality Agreement” means the Confidentiality Agreement between the Company and the Adviser dated October 4, 2013. 

“Control” has the meaning specified in Rule 12b-2 under the Exchange Act. 

“Credit Agreement” means the Credit Agreement among the Operating Partnership and BMO Harris Bank, N.A. dated January 31, 2013.

 “Current Loan” shall have the meaning set forth in Section 7.12. 

“Environmental Law” or “Environmental Laws” shall have the meaning set forth in Section 4.9(b). 

“EPA” shall have the meaning set forth in Section 4.9(a). 

“Equity Incentive Plan” shall mean the Company’s 2013 Equity Incentive Plan. 

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

“ERISA Affiliate” means, with respect to the Company or any Subsidiary, any member of any group of organizations described in
Section 414(b), (c), (m) or (o) of the Code of which the Company or such Subsidiary is a member. 
 “Excess Common
Stock” shall have the meaning set forth in Section 3.2. 
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder. 
 “Exclusivity Period” shall have the meaning set forth
in Section 7.4. 
 “Expense Cap” shall have the meaning set forth in Section 10.7. 

“Financing” shall have the meaning set forth in Section 7.4. 

“FINRA” shall have the meaning set forth in Section 4.5(a). 

“Form 10-Q” shall have the meaning set forth in Section 4.11(a). 

“GAAP” means generally accepted accounting principles of the United States as in effect on the date hereof. 

  
 3 

 “General Partner” shall have the meaning set forth in Section 4.1(b). 

“Governmental Entity” shall have the meaning set forth in Section 4.5(a). 

“Governmental Licenses” shall have the meaning set forth in Section 4.8(c). 

“Hazardous Material” shall have the meaning set forth in Section 4.9(b). 

“HSR Act” shall have the meaning set forth in Section 7.3. 

“Incidental Liens” shall mean (i) Liens for taxes, assessments, levies or other governmental charges (but not Liens for cleanup
expenses arising pursuant to Environmental Law) not yet due (subject to applicable grace periods) or that are being contested in good faith and by appropriate proceedings if, in each case, adequate reserves with respect to such Liens are maintained
on the books of the Company in accordance with GAAP; (ii) carriers’, warehousemen’s, mechanics’, landlords’, vendors’, materialmen’s, repairmen’s, sureties’ or other like Liens arising in the ordinary
course of business (or deposits to obtain the release of any such Lien) and securing amounts not yet due or that are being contested in good faith and by appropriate proceedings if, in the case of such contested Liens, adequate reserves with respect
to such Liens are maintained on the books of the Company in accordance with GAAP; (iii) Liens incurred in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security
legislation; (iv) easements, rights-of-way, covenants, reservations, exceptions, encroachments, zoning and similar restrictions and other similar encumbrances or title defects, in each case incurred in the ordinary course of business that, in
the aggregate, are not substantial in amount, and that do not in any case singly or in the aggregate materially detract from the value or usefulness of the Property subject to such Liens or materially interfere with the ordinary conduct of the
business of the Company and its Subsidiaries, taken as a whole; (v) bankers’ liens arising by operation of Law; and (vi) rights of lessees and sublessees in assets leased by the Company or any Subsidiary as of the date hereof or
otherwise in the ordinary course of business and not otherwise prohibited by this Agreement. 
 “Indebtedness” shall mean all
indebtedness for borrowed money or capital lease obligations that is required to be classified as debt in Company’s financial statements in accordance with GAAP, and shall not include indebtedness under securitization and other accounts
receivable factoring and financing programs. 
 “Indemnified Person” shall have the meaning set forth in Section 9.1(a). 

“Indemnifying Party” shall have the meaning set forth in Section 9.1(a). 

“Information” shall have the meaning set forth in Section 7.10. 

“Insurance Policies” shall have the meaning set forth in Section 4.21. 

“Investment Company Act” shall have the meanings set forth in Section 4.17. 

“Investors” shall have the meaning set forth in the Preamble. 

“Investment Decision Package” means the Prospectus, together with any Issuer Free Writing Prospectus used by the Company in
connection with the Rights Offering. 
 “Issuer Free Writing Prospectus” means each “issuer free writing prospectus” (as
defined in Rule 433 of the rules promulgated under the Securities Act) prepared by or on behalf of the Company or used or referred to by the Company in connection with the Rights Offering. 

  
 4 

 “Knowledge of the Company” means the actual knowledge after due inquiry of one or more
of Michael Baumann, David Levin and Richard Ross. 
 “Law” means any federal, state, local or foreign law (including the Foreign
Corrupt Practices Act of 1977, as amended, and the laws implemented by the Office of Foreign Assets Control, United States Department of Treasury), statute or ordinance, common law, or any rule, regulation, judgment, order, writ, injunction, decree,
arbitration award, license or permit of any Governmental Entity. 
 “Liabilities” shall have the meaning set forth in
Section 9.1(a). 
 “Lien” shall have the meaning set forth in Section 4.1(c). 

“Losses” shall have the meaning set forth in Section 10.16(a). 

“Management Shares” shall have the meaning set forth in Section 6.3(h). 

“Material Adverse Effect” means (i) any material adverse change, or any development that is or would be reasonably expected to
have a material adverse change, in or affecting the condition (financial or otherwise), the business, the properties or the results of operations of the Company and the Subsidiaries taken as a whole or (ii) any material adverse effect on the
ability of the Company, subject to the approvals and other authorizations set forth in Section 4.5, to consummate the transactions contemplated by this Agreement; provided that any such development resulting or arising from or relating
to any of the following matters shall not be considered when determining whether a Material Adverse Effect has occurred or would reasonably be expected to occur: (i) any change, development, occurrence or event affecting the businesses or
industries in which the Company and its Subsidiaries operate; (ii) any conditions in or changes affecting the United States general economy or the general economy in any geographic area in which the Company or its Subsidiaries operate or
developments in the financial and securities markets and credit markets in the United States or elsewhere in the world; (iii) national or international political conditions and changes in political conditions, including acts of war (whether or
not declared), armed hostilities and terrorism, or developments; (iv) any conditions resulting from natural disasters; (v) changes in any Laws or GAAP; (vi) changes in the market price or trading volume of Common Stock or any other
equity, equity-related or debt securities of the Company or its Affiliates (it being understood that the underlying circumstances, events or reasons giving rise to any such change (to the extent not excluded by this definition) can be taken into
account in determining whether a Material Adverse Effect has occurred or would reasonably be expected to occur); (vii) any failure to meet any internal or public projections, forecasts, estimates or guidance for any period (it being understood
that the underlying circumstances, events or reasons giving rise to any such failure (to the extent not excluded by this definition) can be taken into account in determining whether a Material Adverse Effect has occurred or would reasonably be
expected to occur); (viii) actions or omissions of the Company expressly required by the terms of this Agreement; and (ix) the public disclosure of this Agreement or the transactions contemplated hereby; provided, however,
that developments set forth in clauses (i), (ii), (iii), (iv) and (v) above may be taken into account in determining whether there has been or is a Material Adverse Effect if and only to the extent such developments have a materially
disproportionate impact on the Company and its Subsidiaries, taken as a whole, relative to the other participants in the industries in which the Company or its Subsidiaries operate. 

“MGCL” means the General Corporation Law of the State of Maryland. 

“NASDAQ” means the NASDAQ Global Market. 

“Operating Partnership” shall have the meaning set forth in Section 4.1(b). 

“Oversubscription Privilege” shall have the meaning set forth in Section 2.1(f). 

  
 5 

 “PCB” shall have the meaning set forth in Section 4.9(a). 

“Person” means any individual, corporation (including not-for-profit), general or limited partnership, limited liability company,
joint venture, estate, trust, association, organization, Governmental Entity or other entity of any kind or nature. 
 “Preliminary
Prospectus” means each prospectus included in the Registration Statement (and any amendments thereto) before it becomes effective, any prospectus filed with the SEC pursuant to Rule 424(a) under the Securities Act and the prospectus included in
the Registration Statement, at the time of effectiveness that omits information permitted to be excluded under Rule 430A under the Securities Act 

“Previously Disclosed” means (i) information set forth in the Company’s Registration Statement on Form S-11 (File No. 333-185936) initially filed with the SEC on January 8, 2013, including any amendment or supplement thereto and any exhibits thereto (the “Form S-11”), the final
prospectus filed with the SEC on May 14, 2013 pursuant to Rule 424(b) (the “IPO Prospectus”) or its other reports and forms filed with the SEC under Sections 13(a), 14(a) or 15(d) of the Exchange Act on or after January 8, 2013
(except for risks and forward looking information set forth or incorporated in the section “Risk Factors” in the Form S-11 and the IPO Prospectus or in any forward looking statement disclaimers or similar statements that are similarly
non-specific and are predictive or forward looking in nature) and (ii) the information set forth in the Schedules corresponding as indicated on such Schedules to the provision of this Agreement to which such information relates (provided that
any disclosure with respect to a particular paragraph or section of this Agreement or the Schedules shall be deemed to be disclosed for other paragraphs and sections of the Agreement and the Schedules to the extent that the relevance of such
disclosure would be reasonably apparent to a reader of such disclosure). 
 “Proceedings” shall have the meaning set forth in
Section 9.1(a). 
 “Prospectus” shall have the meaning set forth in Section 2.1(e). 

“Proxy Statement” means the definitive proxy statement to be filed with the SEC relating to the Company Stockholder Approval and the
transactions contemplated hereunder, together with all amendments, supplements and exhibits thereto. 
 “Record Date” means the
date as of which each holder of Common Stock shall be offered one Right for each share of Common Stock held as of such date, which date shall be selected by the Board in accordance with the MGCL and the requirements of the NASDAQ. 

“Registration Statement” shall have the meaning set forth in Section 2.1(a). 

“REIT” shall have the meaning set forth in Section 4.19. 

“Repayment Event” shall have the meaning set forth in Section 4.5(a). 

“Representatives” means, with respect to a Person, such Person’s directors, officers, investment bankers, attorneys,
accountants and other advisors or representatives. 
 “Right” means one transferable right to subscribe for, with respect to each
share of eligible Common Stock outstanding on the Record Date, at the Rights Subscription Price, a number of shares of Common Stock equal to (A) 15,797,788 divided by (B) the number of shares of Common Stock outstanding on the Record Date.

 “Rights Offering” shall have the meaning set forth in Section 2.1(f). 

“Rights Subscription Price” means a price per share equal to $6.33. 

 

  
 6 

 “Rule 3-14 Financial Statements” shall have the meaning set forth in
Section 4.9(b). 
 “Schedules” means the disclosure schedules delivered by the Company to the Investors concurrently with the
execution of this Agreement. 
 “SEC” means the Securities and Exchange Commission. 

“Securities” or “Security” means Capital Stock, limited partnership interests, limited liability company interests,
beneficial interests, warrants, options, restricted stock units, notes, bonds, debentures, and other securities, equity interests, ownership interests and similar obligations of every kind and nature of any Person. 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder. 

“Shares” shall have the meaning set forth in the Recitals. 

“Stockholders Agreement” means the Stockholders Agreement in the form attached as Annex I. 

“Subscription Notice” shall have the meaning set forth in Section 2.2(a). 

“Subscription Period” shall have the meaning set forth in Section 2.1(f). 

“Subsidiary” or “Subsidiaries” shall have the meaning set forth in Section 4.1(c). 

“Superior Transaction” means a bona fide written Financing or Acquisition Transaction that the Board has determined in good faith
after receiving the advice of its financial advisors and outside legal counsel and in the exercise of its duties under Maryland law is in the best interests of the Company and its stockholders. 

“Termination Fee” means seven million five hundred thousand dollars ($7,500,000), payable in cash. 

“Voting Stock” means Capital Stock of the Company of the class or classes pursuant to which the holders thereof have the general
voting power under ordinary circumstances (determined without regard to any classification of directors) to elect at least a majority of the Board, managers or trustees of the Company (irrespective of whether or not at the time Capital Stock of any
other class or classes shall have or might have voting power by reason of the happening of any contingency until the occurrence of such contingency). 

ARTICLE II

THE RIGHTS OFFERING AND BACKSTOP COMMITMENT 

Section 2.1 The Rights Offering. 

(a) As promptly as practicable after the date of this Agreement, but in no event later than one (1) Business Day following the date of
this Agreement, the Company shall (i) prepare and file with the SEC the Proxy Statement and (ii) prepare and file with the SEC a registration statement on Form S-11 (including each amendment and supplement thereto, the “Registration
Statement”), covering the issuance of the Rights and the Common Stock issuable upon exercise of the Rights in the Rights Offering. The Company shall not permit any securities to be included in the Registration Statement other than the
Rights and the Common Stock issuable upon exercise of the Rights in the Rights Offering. The Registration Statement (including all pre-effective and post-effective amendments) and the Proxy Statement (and any amendment) shall be provided to the
Investors and their counsel prior to its filing with the SEC, and the Investors and their counsel shall be given a reasonable 

  
 7 

 
opportunity to review and comment on such documents prior to their being filed with the SEC. The Company shall duly consider in good faith any comments of the Investors and their counsel to the
Registration Statement and the Proxy Statement. 
 (b) The Investors shall provide to the Company such information as the Company may
reasonably request in connection with the preparation and filing of the Registration Statement. At the time such information is provided and at the respective times the Registration Statement and any post-effective amendments thereto become
effective, no such information provided by the Investors shall include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. 

(c) The Company shall use its reasonable best efforts to have the Registration Statement declared effective by the SEC as promptly as
practicable after such filing. The Company shall take all action as may be reasonably necessary or advisable so that the Rights Offering and the issuance and sale of the Acquired Shares and the other transactions contemplated by this Agreement will
be effected in accordance with the applicable provisions of the Securities Act and the Exchange Act and any state or foreign securities or blue sky laws. 

(d) If at any time prior to the expiration of the Rights Offering any event occurs as a result of which the Investment Decision Package, as
then amended or supplemented, would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or
if it shall be necessary to amend or supplement the Investment Decision Package to comply with applicable law, the Company will promptly notify the Investors of any such event and prepare an amendment or supplement to the Investor Decision Package
that is reasonably acceptable in form and substance to the Investors that will correct such statement or omission or effect such compliance. 

(e) At the respective times the Registration Statement and any post-effective amendments thereto become effective, the Registration Statement
shall comply in all material respects with the requirements as to form of Form S-11, and the Registration Statement shall not include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein,
in light of the circumstances in which they were made, not misleading; provided, that the Company shall make no such representation with respect to information provided to it by the Investors under Section 2.1(b). Each Preliminary
Prospectus, as of its date, shall not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided, that the Company shall make no such representation with respect to information provided to it by the Investors under Section 2.1(b). The final prospectus relating to the Rights Offering filed pursuant to Rule 424 of the
Securities Act (as amended or supplemented, the “Prospectus”), as of its date, shall not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided, that the Company shall make no such representation with respect to information provided to it by the Investors under Section 2.1(b). The Investment Decision
Package, taken as a whole, as of the date of the commencement of the Rights Offering and as of the date of the expiration of the Rights Offering, shall not include an untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, that the Company shall make no such representation with respect to information provided to it by the Investors under
Section 2.1(b). The representations set forth in this Section 2.1(e) and in Section 4.7 are referred to as the “10b-5 Representation.” 

(f) Promptly following the date on which the Registration Statement is declared effective by the SEC, the Company shall print and file with
the SEC the Prospectus, distribute the Prospectus to stockholders of record as of the Record Date and thereafter promptly commence the Rights Offering on the following terms: (i) the Company shall distribute, at no charge, one Right to each
holder of record of Common Stock for each share of Common Stock held by such holder as of the Record Date, (ii) each Right shall entitle the holder thereof to 

  
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purchase, at the election of such holder, a number of shares of Common Stock equal to (A) 15,797,788 divided by (B) the number of shares of Common Stock outstanding on the Record Date,
at the Rights Subscription Price, thereby entitling such holders of Rights, in the aggregate, to subscribe for an aggregate of approximately 15,797,788 shares of Common Stock (such actual aggregate number, the “Aggregate Offered
Shares”), provided that no fractional shares of Common Stock shall be issued and the Rights Subscription Price multiplied by the aggregate number of shares of Common Stock offered shall not exceed the aggregate offering amount
described in the Registration Statement, (iii) each such Right shall be transferable, (iv) the rights offering shall remain open for at least sixteen (16) days, or such longer period as required by Law or as reasonably determined by
the Company (such period, as may be extended by the Company in its sole discretion, the “Subscription Period”), (v) each holder who fully exercises all Rights held by such holder shall be entitled to subscribe for additional
shares of Common Stock that were not subscribed for in the Rights Offering (the “Oversubscription Privilege”); provided, if the remaining number of unsubscribed shares of Common Stock are insufficient to satisfy all
oversubscription requests pursuant to the Oversubscription Privilege, all over-subscription requests shall be honored on a pro rata basis in the manner to be set forth in the Prospectus, (vi) no Person may exercise the Rights to the extent the
exercise thereof would cause such Person to acquire Beneficial Ownership in excess of 9.8% of the outstanding Capital Stock after giving effect to the consummation of the Rights Offering and the Backstop Commitment, and (vii) any Person who is,
prior to the consummation of the Rights Offering, the Beneficial Owner of in excess of 9.8% of the outstanding Capital Stock shall be entitled to exercise the Rights (including any over-subscription right) only to the extent necessary to maintain
the same proportionate Beneficial Ownership percentage that such Person had in the Capital Stock of the Company prior to the consummation of the Rights Offering and the other transactions contemplated hereby (such rights offering, the
“Rights Offering”). 
 (g) The Company shall not amend any of the terms of the Rights Offering described in
Section 2.1(f)(i) through (v) or waive any material conditions to the closing of the Rights Offering without the prior written consent of the Investors, which consent may be withheld by the Investors in their sole discretion. Subject to
the terms and conditions of the Rights Offering, the Company shall effect the closing of the Rights Offering as promptly as practicable following the end of the Subscription Period. The closing of the Rights Offering shall occur in the manner and on
the terms of the Rights Offering in Section 2.1(f), as shall be set forth in the Prospectus. Notwithstanding the foregoing, the Company may extend the Subscription Period in its sole and absolute discretion for a period of not greater than ten
(10) Business Days. 
 (h) The Company shall pay all of its expenses associated with the Registration Statement, the Prospectus, the
Rights Offering and the other transactions contemplated hereby, including filing and printing fees, fees and expenses of any subscription and information agents, fees and expenses of its counsel and accounting fees and expenses and costs associated
with clearing the Common Stock offered thereby for sale under applicable state securities Laws. 

Section 2.2 Backstop Commitment. 

(a) Subject to the consummation of the Rights Offering and the terms and conditions of this Agreement, the Investors shall purchase from the
Company (in amounts among the Investors as set forth on Annex III hereto), and the Company shall sell and issue to the Investors, at a price per share equal to the Rights Subscription Price, a number of shares of Common Stock (the “Backstop
Commitment”) equal to (x) the Aggregate Offered Shares minus the sum of (y) (1) the number of shares of Common Stock subscribed for and purchased pursuant to the Rights Offering and (2) the Management Shares. Within two
(2) Business Days after the closing of the Subscription Period, the Company shall issue to the Investors a notice (the “Subscription Notice”) setting forth the number of shares of Common Stock subscribed for in the Rights
Offering and the Management Shares to be acquired as contemplated by Section 6.3(h) and, accordingly, the number of shares of Common Stock to be acquired by the Investors pursuant to the Backstop Commitment. Shares of Common Stock acquired by
the Investors pursuant to the Backstop Commitment are collectively referred to as the “Backstop Acquired Shares.” 

  
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 (b) On the terms and subject to the conditions set forth in this Agreement, the closing of the
Backstop Commitment (the “Closing”) shall occur on the later of (i) simultaneously with the closing of the Rights Offering which shall occur no later than the third Business Day following the issuance by the Company of the
Subscription Notice and (ii) the date that all of the conditions to the Closing set forth in Article VII of this Agreement have been satisfied or waived (other than those conditions that by their nature are to be satisfied at the Closing), at
9:30 a.m. (New York City time) at the offices of Morrison & Foerster LLP, 2000 Pennsylvania, N.W., Suite 6000, Washington, DC 20006, or such other place, time and date as shall be agreed between the Company and the Investors (the date on
which the Closing occurs, the “Closing Date”). 
 (c) At the Closing (i) the Company shall deliver to the Investors
the certificates representing the Backstop Acquired Shares against payment by or on behalf of the Investors of the purchase price therefor by wire transfer in immediately available funds to the account designated by the Company in writing,
(ii) the Company shall deliver all other documents and certificates required to be delivered to the Investors pursuant to Section 6.3, and (iii) the Investors shall deliver all documents and certificates required to be delivered to
the Company pursuant to Section 6.2. 
 (d) In the event the closing of the Rights Offering occurs, and in consideration for the
Investors agreeing to the Backstop Commitment, the Company shall pay to the Investors at Closing a fee in the amount of three million seven hundred and fifty thousand dollars ($3,750,000) payable in a number of shares of unregistered Common Stock
equal to $3,750,000 divided by the Rights Subscription Price (the “Backstop Commitment Fee” and the shares of Common Stock issued to the Investor, “Backstop Commitment Fee Shares”). For the avoidance of doubt, no
Backstop Commitment Fee shall be payable unless and until a closing of the Rights Offering occurs and, to the extent the Rights Offering is not fully subscribed, the Investors have closed the purchase of any Backstop Acquired Shares. 

ARTICLE III 

ADDITIONAL PURCHASE COMMITMENT 

Section 3.1 Additional Purchase Commitment. 

(a) Subject to the consummation of the Rights Offering and the terms and conditions of this Agreement, the Investors shall purchase from the
Company at the Rights Subscription Price in addition to any shares of Common Stock to be purchased pursuant to the Backstop Commitment, a number of shares of Common Stock, at the Rights Subscription Price in an aggregate amount equal to $50,000,000
divided by the Rights Subscription Price (the “Additional Purchase Commitment”). Shares of Common Stock acquired by the Investors pursuant to the Additional Purchase Commitment are collectively referred to as the “Additional
Acquired Shares,” and together with the Backstop Acquired Shares, the Backstop Commitment Fee Shares and the Additional Purchase Commitment Fee Shares, the “Acquired Shares”). 

(b) The closing of the Additional Purchase Commitment shall occur concurrently with the Closing on the Closing Date at which time the Company
shall deliver to the Investors certificates representing the Additional Acquired Shares against payment by or on behalf of the Investors of the purchase price therefor (as set forth in this Section 3.1) by wire transfer in immediately available
funds to the account designated by the Company. 
 (c) In consideration for the Investors agreeing to the Additional Purchase Commitment,
the Company shall pay to the Investors at Closing a fee in the amount of three million seven hundred and fifty thousand dollars ($3,750,000) payable in a number shares of unregistered Common Stock equal to $3,750,000 divided by the Rights
Subscription Price (the “Additional Purchase Commitment Fee” and the shares of Common Stock issued to the Investor, “Additional Purchase Commitment Fee Shares”), independent of the Backstop Commitment Fee. 

  
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 ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

Except as Previously Disclosed, the Company represents and warrants to the Investors that: 

Section 4.1 Organization.  

(a) The Company has been duly organized and is validly existing as a corporation in good standing under the laws of the State of Maryland, with
corporate power and authority to own or lease, as the case may be, its properties and conduct its business. The Company has been duly qualified as a foreign corporation for the transaction of business and is in good standing under the laws of each
other jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the failure to so qualify or be in good standing would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect. 
 (b) The Company is the sole member of Trade Street OP GP, LLC (the
“General Partner”), the sole general partner of the Trade Street Operating Partnership, LP, a Delaware limited partnership (the “Operating Partnership”). 

(c) Each of the General Partner, the Operating Partnership and each direct and indirect “subsidiary” (as defined in Rule 12b-2 under
the Exchange Act) of the Operating Partnership (each of the General Partner, the Operating Partnership and each subsidiary of the Operating Partnership being referred to as a “Subsidiary” and collectively the
“Subsidiaries”) has been duly organized and is validly existing as a corporation, limited partnership or limited liability company in good standing, as the case may be, under the laws of the jurisdiction of its organization, with full
power and authority (corporate or otherwise) to own or lease, as the case may be, its properties and conduct its business and has been duly qualified for the transaction of business as a foreign corporation, limited partnership or limited liability
company, as the case may be, and is in good standing under the laws of each other jurisdiction in which such qualification is required, whether by reason or the ownership or leasing of property or the conduct of business, except where the failure to
so qualify or be in good standing would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; all of the outstanding shares of capital stock or other equity interests of each Subsidiary have been duly
authorized and validly issued, are fully paid and non-assessable, have been issued in material compliance with U.S. federal and state securities laws and were not issued in violation of any preemptive or similar rights of any securityholder of such
Subsidiary or any other person; except as described in the Registration Statement and the Prospectus, all of the outstanding shares of capital stock or other equity interests of each Subsidiary are owned directly or indirectly by the Company, free
and clear of all security interests, liens, mortgages, encumbrances, pledges, claims, equities or other defects of any kind (collectively, “Liens”); and the only Subsidiaries are the entities listed on Schedule 4.1(c) to this
Agreement. 
 (d) The Company and the Subsidiaries are conducting their respective businesses in compliance with all statutes, laws, rules,
regulations, judgments, directives and orders of any Governmental Entity applicable to them, except where the failure to so comply would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and none of the
Company or the Subsidiaries has received any communication asserting noncompliance with any statute, law, rule, regulation, judgment, directive or order except where such noncompliance would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. 
 Section 4.2 Authorization. 

The Company has full corporate power and authority to enter into this Agreement and the Stockholders Agreement. This Agreement and the
Stockholders Agreement have been duly authorized, executed and delivered 

  
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by the Company. This Agreement and the Stockholders Agreement constitute valid and binding obligations of the Company and are enforceable against the Company in accordance with their terms,
except as the enforceability may be limited by applicable bankruptcy, insolvency, reorganization and similar laws affecting creditors’ rights generally and moratorium laws in effect from time to time and by equitable principles restricting the
availability of equitable remedies and except to the extent that the indemnification and contribution provisions here of may be limited by federal or state securities laws and public policy considerations in respect thereof. 

Section 4.3 Capitalization. 

(a) As of the date hereof, (i) the Company is authorized to issue up to 1,000,000,000 shares of Common Stock and has 11,468,665 shares of
Common Stock outstanding (ii) the Company is authorized to issue up to 50,000,000 shares of preferred stock that may be issued in one or more series, 423,326 shares of which have been designated as “Class A Preferred Stock,” and
273,326 shares of preferred stock, which have been designated as “Class A Preferred Stock,” are outstanding, (iii) warants to acquire 139,215 shares of Common Stock are outstanding and (iv) 4,329 shares of Common Stock remain available for
future issuance under the Equity Incentive Plan. The authorized and outstanding Common Stock shall be set forth in the Registration Statement and shall be true and correct as of the dates noted therein and as of the Closing. All of the outstanding
shares of Capital Stock and preferred stock have been duly and validly authorized and issued and are fully paid and non-assessable and were not issued in violation of any pre-emptive rights, resale rights, rights of first refusal or similar rights.

 (b) Except pursuant to this Agreement and the sale of the Management Shares, there are no outstanding rights (contractual or otherwise),
warrants or options to acquire, or instruments convertible into or exchangeable or exercisable for, or agreements or understandings with respect to the sale or issuance of, any shares of capital stock of or other equity interest in the Company. 

(c) Except as set forth on Schedule 4.3(c) to this Agreement, there are no persons with registration rights or other similar rights to have
any securities registered pursuant to the Registration Statement or otherwise registered by the Company under the Securities Act. 
 (d) The
Company has not granted to any person or entity, a stock option or other equity-based award to purchase or receive common stock of the Company or partnership units of the Operating Partnership pursuant to the Equity Incentive Plan. 

(e) Since the close of business on October 31, 2013, no shares of capital stock or other equity securities or voting interest in the Company
or any of its Subsidiaries have been issued or reserved for issuance or become outstanding, other than the shares to be issued hereunder. Other than as set forth in the Stockholders Agreement and the Articles of Restatement, neither the Company nor
any of its Subsidiaries is party to or otherwise bound by or subject to any outstanding option, warrant, call, subscription or other right (including any preemptive right), agreement or commitment which (x) restricts the transfer of any shares
of capital stock of the Company or (y) relates to the voting of any shares of capital stock of the Company or any of its Subsidiaries. 

Section 4.4 Valid Issuance of Shares.  

The Acquired Shares have been duly and validly authorized (assuming Company Stockholder Approval) and, when issued and delivered against
payment therefor as provided herein, will be validly issued, free from all taxes, liens (other than liens created by the Investors) and charges with respect to the issue thereof, fully paid and non-assessable, will not be subject to the preemptive
or similar rights of any securityholder of the Company or any other person and will conform to the description of the Common Stock in the Registration Statement; no holder is or will be subject to personal liability by reason of being such a holder;
and no further approval or authority of the stockholders of the Company or the Board is required for the issuance and sale of the Acquired Shares other than as contemplated herein. 

  
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 Section 4.5 Non-Contravention; Governmental
Authorizations. 
 (a) Except as described in Schedule 4.5(a) to this Agreement, the issue and sale of the Acquired Shares by the
Company, the execution, delivery and performance of this Agreement by the Company, the compliance by the Company with all of the provisions of this Agreement, and the consummation of the transactions herein contemplated will not conflict with or
constitute a breach or violation of any of the terms or provisions of, or constitute a default under, any contract, indenture, mortgage, deed of trust, loan agreement, note, lease or other agreement or instrument to which the Company or any of the
Subsidiaries is a party or by which the Company or any of the Subsidiaries is bound or to which any of the property or assets of the Company or any of the Subsidiaries is subject (collectively, the “Agreements and Instruments”),
except for such conflicts, breaches, violations or defaults that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, nor will any such action (A) result in any violation of the provisions of
the articles of restatement or bylaws of the Company or similar organizational documents of the Subsidiaries, (B) result in any violation of any law, statute, order, rule, regulation or judgment of any federal, state, local or foreign court,
arbitrator, regulatory authority or governmental agency or body having jurisdiction over the Company or the Subsidiaries or any of their property or assets (each, a “Governmental Entity”), (C) result in the creation or
imposition of any Lien upon any property, assets or operations of the Company or the Subsidiaries pursuant to, any of the Agreements and Instruments, except, with respect to clauses (B) and (C), for such violations or Liens that would not
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or (D) constitute a Repayment Event (as defined below) under any of the Agreements or Instrument (x) that would require the Company to make a
payment of at least $10,000,000 or (y) that could reasonably be expected to have a Material Adverse Effect; no filing with, or consent, approval, authorization, license, order, registration, qualification or decree of, any Governmental Entity
is required for the issue and sale of the Acquired Shares by the Company, the execution, delivery and performance of, or compliance with, this Agreement by the Company or the consummation of the transactions contemplated by this Agreement, except
the registration of the Rights and the Shares under the Securities Act, the registration of the Rights under the Exchange Act, the listing of the Rights and the shares acquired in the Rights Offering by NASDAQ, the filing of the Proxy Statement, the
filing of any document that may be required under the rules and regulations of the Financial Industry Regulatory Authority, Inc. (“FINRA”), the filing of any document that may be required by NASDAQ, all approvals and authorizations
of, filings with, and notifications under the HSR Act, and except for such filings, consents, approvals, authorizations, registrations, qualifications or decrees as have been made or obtained or as may be required under state securities or the laws
of any foreign jurisdiction in connection with the purchase and distribution of the Acquired Shares. The term “Repayment Event” means any event or condition that gives the holder of any note, debenture or other evidence of Indebtedness (or
any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such note, debenture or other evidence of Indebtedness by the Company or any Subsidiary. 

(b) None of the Company or the Subsidiaries is (A) in violation of its charter, bylaws or similar organizational documents, as the case
may be or (B) in default in the performance or observance of any obligation, agreement, covenant or condition contained in any of the Agreements and Instruments, except, with respect to clause (B), for such defaults that would not be reasonably
expected to have, individually or in the aggregate, a Material Adverse Effect. 
 (c) Other than as described on Schedule 4.5(c) to this
Agreement, there are no legal or governmental actions, suits, investigations or proceedings brought before or by any Governmental Entity, now pending or, to the Knowledge of the Company, threatened or contemplated by any Governmental Entity or
others, to which the Company or any Subsidiary is a party or of which any property or assets of the Company or any Subsidiary is the subject (A) that are required to be disclosed by the Securities Act or Exchange Act or the rules and
regulations of the SEC thereunder and not disclosed therein, (B) which, if determined adversely to the Company or any Subsidiary, would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or (C) that
could adversely affect the consummation of the transactions contemplated in this Agreement; and there are no contracts or other documents of the Company or any of the Subsidiaries that are required to be disclosed

  
 13 

 
or to be filed as exhibits to any of the documents Previously Disclosed, by the Exchange Act or the rules and regulations of the SEC thereunder which have not been so described and filed. 

Section 4.6 Litigation.  

There are no actions, suits or proceedings pending or, to the Knowledge of the Company, threatened against the Company or any of its
Subsidiaries, except actions, suits or proceedings which if determined adversely to the Company or any of its Subsidiaries, would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect. 

Section 4.7 Proxy Statement 

The Proxy Statement will not, on the date it is first mailed to stockholders of the Company, contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading and will not, at the time of the Company Stockholder
Approval, omit to state any material fact necessary to correct any statement in any earlier communication from the Company with respect to the solicitation of proxies for the Company Stockholder Approval which shall have become false or misleading
in any material respect. The Proxy Statement will comply as to form in all material respects with the applicable requirements of the Exchange Act. Notwithstanding the foregoing, the Company makes no representation or warranty with respect to
information furnished to the Company in writing by the Investors for inclusion or incorporation by reference in any of the foregoing documents. 

Section 4.8 Compliance with Laws; Permits. 

(a) The Company and each of its Subsidiaries have conducted their businesses in compliance in all material respects with all applicable Laws
and applicable stock exchange requirements. 
 (b) The Company is in compliance, in all material respects, with the provisions of the
Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and the rules and regulations of the SEC thereunder applicable to it. 

(c) Each of the Company and the Subsidiaries possess such permits, licenses, approvals, consents and other authorizations (collectively,
“Governmental Licenses”) issued by the appropriate Governmental entities necessary to conduct the business now operated by the Company and the Subsidiaries, except where the failure to possess such Governmental Licenses would not
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; the Company and the Subsidiaries are in compliance with the terms and conditions of all such Governmental Licenses, except where the failure so to comply
would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; all of the Governmental Licenses are, to the Knowledge of the Company, valid and in full force and effect except where the invalidity of such
Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; and none of the Company or the Subsidiaries has
received any notice of proceedings relating to the revocation, termination or modification of any such Governmental Licenses which, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect. 
 Section 4.9 Environmental Matters 

(a) (a) Except as would not have, individually or in the aggregate, a Material Adverse Effect: (i) each of the Company and the
Subsidiaries and their respective properties described in the Company SEC Documents or other assets have been and are in compliance with, and none of the Company or the Subsidiaries has any pending or, to the Knowledge of the Company, threatened
liability under applicable Environmental Laws (as defined below); (ii) none of the Company, the Subsidiaries, or, to the Knowledge of the Company, any Person has 

  
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at any time Released (as defined below) or otherwise disposed of Hazardous Materials (as defined below) on, to or from the properties or other assets currently or previously owned by the Company
or the Subsidiaries, except for such Releases or dispositions that are in compliance with Environmental Laws, or that have been remediated in accordance with Environmental Laws; (iii) none of the Company or the Subsidiaries has received any
notice and each is otherwise unaware of any Release of Hazardous Materials in violation of Environmental Law into waters (including, but not limited to, groundwater and surface water) on, beneath or adjacent to the properties or other assets, or
onto the properties or other assets owned by any of the Company or the Subsidiaries; (iv) none of the Company or the Subsidiaries has received any notice of nor has there been, any occurrence or circumstance which, with notice or passage of
time or both, would give rise to a claim under or pursuant to any applicable Environmental Law or common law by any governmental or quasi-governmental body or any third party with respect to the properties described in the Company SEC Documents of
the Company or the Subsidiaries, or arising out of the conduct of the Company or the Subsidiaries; and (v) neither the properties nor any other assets currently owned by any of the Company or the Subsidiaries is included, nor has the Company or
the Subsidiaries received notice of the proposed inclusion of such properties or assets, on the National Priorities List issued pursuant to CERCLA by the United States Environmental Protection Agency (the “EPA”) or any similar list or
inventory issued pursuant to any other applicable Environmental Law or issued by any other Governmental Entity; and (vi) to the Knowledge of the Company there have not been and are no (A) underground storage tanks, (B) polychlorinated
biphenyls (“PCBs”) or PCB-containing equipment, (C) asbestos or asbestos containing materials, (D) lead-based paints, or (E) dry-cleaning facilities, in each case in, on, or under any property or other assets owned by any of
the Company or the Subsidiaries. 
 (b) As used herein, (i) “Environmental Law” (and collectively,
“Environmental Laws”) shall mean any applicable civil or criminal federal, state, local or foreign Law or other requirement of any Governmental Authority relating to pollution or protection of the environment, natural resources,
public and employee health and safety or to Hazardous Materials, including without limitation, Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §§ 9601-9675 (“CERCLA”), the
Hazardous Materials Transportation Act, as amended, 49 U.S.C. §§ 5101-5128, the Solid Waste Disposal Act, as amended, 42 U.S.C. §§ 6901-6992k, the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C.
§§ 11001-11050, the Toxic Substances Control Act, 15 U.S.C. §§ 2601-2692, the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §§ 136-136y, the Clean Air Act, 42 U.S.C. §§ 7401-7671q, the
Clean Water Act (the Federal Water Pollution Control Act), 33 U.S.C. §§ 1251-1387, the Safe Drinking Water Act, 42 U.S.C. §§ 300f-300j-26, and the Occupational Safety and Health Act, 29 U.S.C. §§ 651-678;
(ii) “Hazardous Material” shall include any flammable explosives, radioactive materials, hazardous materials, hazardous wastes, toxic substances or related materials, asbestos or any hazardous material as defined or regulated
by any Environmental Law; and (iii) “Release” shall mean any release, spill, emission, leaking, pumping, pouring, dumping, emptying, injection, deposit, disposal, discharge, dispersal, leaching, or migration on or into the
indoor or outdoor environment or into or out of any property (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material). 

Section 4.10 Periodic Filings; Financial Statements. 

(a) Since May 13, 2013, the Company has timely filed all reports, registrations, documents, filings, statements and submissions, together
with any required amendments thereto (collectively the “Company SEC Documents”), that were required to be filed with the SEC under the Securities Act and the Exchange Act. As of their respective filing dates, the Company SEC
Documents complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the Company SEC Documents contained, when filed with the SEC, and if amended, as of the date of such amendment,
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances in which they were made, not misleading, except to the
extent corrected by a subsequently filed document with the SEC. 

  
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 (b) (i) The financial statements included in the Company SEC Documents, together with the
supporting schedules, if any, and notes, present fairly in all material respects the consolidated financial condition of the Company and its consolidated subsidiaries at the dates indicated and the consolidated results of operations, cash flows and
changes in stockholders’ equity of the Company and its consolidated subsidiaries for the periods specified and such financial statements and supporting schedules, if any, have been prepared in conformity with GAAP applied on a consistent basis
throughout the periods covered thereby; (ii) the statements of revenues and certain expenses of certain properties acquired or to be acquired (“Rule 3-14 Financial Statements”) in the Company SEC Documents comply with Rule 3-14
of Regulation S-X; (iii) the pro forma financial statements and the related notes thereto in the Company SEC Documents present fairly the information shown therein and have been compiled on the bases described therein, and the assumptions used
in the preparation thereof are reasonable and the adjustments used therein are appropriate to give effect to the transactions and circumstances referred to therein, and comply as to form in all material respects with Article 11 of Regulation S-X;
and (iv) to the extent applicable, all disclosures in the Company SEC Documents regarding “non-GAAP financial measures” (as defined in the rules and regulations of the SEC) comply in all material respects with Regulation G of the
Exchange Act and Item 10 of Regulation S-K of the Securities Act and the Exchange Act. 
 (c) Each of the accounting firms that has
audited financial statements prepared in conformity with GAAP included in Company SEC Documents is an independent registered public accounting firm as required by the Securities Act and the Exchange Act, the rules and regulations of the SEC
thereunder and the rules of the Public Company Accounting Oversight Board. Each accounting firm that has audited Rule 3-14 Financial Statements included in Company SEC Documents is independent pursuant to applicable standards of the accounting
profession. 
 (d) The Company and the Subsidiaries maintain a system of internal control over financial reporting (as defined in Rule
13a-15 under the Exchange Act) sufficient to provide reasonable assurances that (A) transactions are executed in accordance with the management’s general or specific authorization, (B) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain asset accountability, (C) access to assets is permitted only in accordance with the management’s general or specific authorization and (D) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences; Except as set forth on Schedule 4.10(d), since the end of the Company’s most recent audited
fiscal year, there has been no material weakness or significant deficiency in such internal control over financial reporting (whether or not remediated) and no change in such internal control over financial reporting that has materially affected, or
is reasonably likely to materially affect, such internal control over financial reporting; to the Company’s Knowledge there has not been any fraud, whether or not material, that involves management or other employees who have a role in internal
control over financial reporting; and, with respect to any material weaknesses and significant deficiencies known to the Company as of the date hereof, the Company has remediated such material weaknesses and significant deficiencies. 

(e) The Company has established and maintains disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the
Exchange Act) for it and the Subsidiaries that are designed to ensure that information required to be disclosed by the Company in the reports that it will be required to file or submit under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the SEC’s rules and regulations and forms and that material information relating to the Company and the Subsidiaries is made known to the Company’s chief executive officer and its chief
financial officer by others within those entities to allow timely decisions regarding disclosures. 

Section 4.11 Absence of Certain Changes. 

(a) None of the Company or any of the Subsidiaries has sustained since the date of the latest financial statements included in the Company SEC
Documents any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or action, order or decree of any Governmental Entity; and, since the date of
the latest financial statements included in the 

  
 16 

 
Company SEC Documents and other than disclosed in the draft of the Company’s Quarterly Report on Form 10-Q for the period ended
September 30, 2013, which is set forth on Annex IV hereto (the “Form 10-Q”), (A) there has not been any change in the capital stock or long term debt of the Company or the Operating Partnership or any material adverse
change, or any development that would reasonably be expected to have Material Adverse Effect, (B) there have been no transactions entered into by the Company or any of the Subsidiaries, other than those in the ordinary course of business, which
are material with respect to the Company and the Subsidiaries, taken as a whole, (C) there has been no dividend or distribution of any kind declared, paid or made by the Company or the Operating Partnership on any class or series of its capital
stock and (D) the Company has not incurred any material liability other than in the ordinary course of business. 
 (b) No
relationship, direct or indirect, exists, or transaction has occurred, between or among the Company or any of the Subsidiaries, on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company, any of the
Subsidiaries, on the other hand, that is required by the Securities Act, the Exchange Act or the rules and regulations of the SEC thereunder to have been described in the Company SEC Documents, and that is not so described. 

Section 4.12 Brokers and Finders. 

Other than the Backstop Commitment Fee and the Additional Purchase Commitment Fee, and except as set forth on Schedule 4.12, the Company has
not incurred any liability for any brokerage commission, placement agent’s fees, finder’s fees or similar payments in connection with the offering of the Acquired Shares contemplated hereby. 

Section 4.13 Taxes.  

(a) Each of the Company and the Subsidiaries has filed on a timely basis all foreign, U.S. federal, state and local tax returns that are
required to be filed or is eligible for, and has requested, extensions thereof, and all such tax returns are true, correct and complete in all material respects; each of the Company and the Subsidiaries has paid, in all material respects, all taxes
required to be paid by it and any other material assessment, fine or penalty levied against it, to the extent that any of the foregoing is due and payable, except for any such assessment, fine or penalty that is currently being contested in good
faith. 
 (b) On the Closing Date, all stock transfer or other taxes (other than income taxes) that are required to be paid in connection
with the sale and transfer of the Acquired Shares to the Investors hereunder will have been, fully paid or provided for by the Company and all laws imposing such taxes will have been fully complied with. 

Section 4.14 Integration; Other Issuances of Shares. 

Neither the Company, nor any Affiliate of the Company, nor, any person acting on its behalf or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause the offering or issuance of the Acquired Shares to be integrated with prior offerings by the Company for purposes of the Securities
Act, that would cause Regulation D under the Securities Act or any other applicable exemption from registration under the Securities Act to be unavailable, or would cause any applicable state securities Law exemptions or any applicable stockholder
approval exemptions, including, without limitation, under the rules and regulations of any national securities exchange or automated quotation system on which any of the securities of the Company are listed or designated to be unavailable, nor will
the Company take any action or steps that would cause the offering or issuance of the Acquired Shares to be integrated with other offerings. 

Section 4.15 No General Solicitation. 

Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Shares by any form of general solicitation or
general advertising. 

  
 17 

 Section 4.16 Offering; Exemption.  

Assuming the accuracy of the Investor’s representations and warranties set forth in Section 5 of this Agreement, no registration
under the Securities Act or any applicable state securities Law is required for the offer and sale of the Acquired Shares by the Company to the Investors as contemplated hereby. 

Section 4.17 No Manipulation or Stabilization. 

None of the Company, the Subsidiaries or, to the Knowledge of the Company, any other Affiliate of the Company or any person acting on their
respective behalf has taken, directly or indirectly, any action which is designed to or which has constituted or which would reasonably be expected to cause or result in stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Common Stock. 
 Section 4.18 Investment Company
Act. 
 The Company is not nor, after giving effect to the offering and sale of the Shares, and after receipt of payment for the
Common Stock and the application of the net proceeds as described in the Registration Statement, will it be an “investment company”, required to register under the Investment Company Act of 1940, as amended (the “Investment Company
Act”). 
 Section 4.19 Employee Relations. 

No labor problem or dispute with the employees of the Company or the Subsidiaries exists or, to the Knowledge of the Company, is threatened
that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Neither the Company nor its Subsidiaries is a party to any labor or collective bargaining agreement and there are no organizing activities
involving the Company or its Subsidiaries pending with any labor organization or group of employees of the Company or its Subsidiaries. There are no complaints, charges, or claims against the Company or its Subsidiaries pending, or to the Knowledge
of the Company, threatened in writing to be brought or filed, arising out of, in connection with, or otherwise relating to the employment or termination of employment or any individual by the Company or its Subsidiaries that would reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect. The Company and its Subsidiaries are in material compliance with all laws governing the employment of labor, including, but not limited to, all such laws relating to
wages, hours, collective bargaining, discrimination, civil rights, safety and health, workers’ compensation and the collection and payment of withholding and/or Social Security taxes and similar taxes that would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect. 
 Section 4.20 REIT Status.

 Commencing with its taxable year ended December 31, 2004, the Company has been, and upon the sale of the Common Stock, the Company
will continue to be, organized and operated in conformity with the requirements for qualification and taxation as a real estate investment trust (a “REIT”) under Code, and the Company’s present and proposed method of operation,
as described in the Registration Statement will enable it to continue to meet the requirements for qualification and taxation as a REIT under the Code for its taxable year ending December 31, 2013 and thereafter. 

Section 4.21 Insurance. 

The Company and the Subsidiaries maintain insurance underwritten by insurers of recognized financial responsibility, of the types and in the
amounts that the Company reasonably believes is adequate and customary for its business (the “Insurance Policies”), including, but not limited to, insurance covering all real and personal property owned or leased by the Company and
the Subsidiaries against theft, damage, destruction, flood, acts of 

  
 18 

 
vandalism, liability insurance and such other risks that may be required by law or contracts, with such deductibles as are customary for companies in the same or similar business. All of the
Insurance Policies are in full force and effect and neither the Company nor any of the Subsidiaries is in default, whether as to payment of premium or otherwise, under the terms of any such insurance nor has the Company or the Subsidiaries failed to
give any notice or present any material claim under any such insurance in a due and timely fashion or received notice or otherwise become aware of any intent of an insurer to either claim any default on the part of the Company or the Subsidiaries or
not to renew any policy of insurance on its expiry or to increase any deductible or cost. The limits of the Insurance Policies have not been materially eroded. 

Section 4.22 Acknowledgment Regarding Investor’s Purchase of Shares.  

The Company acknowledges and agrees that the Investors are acting solely in the capacity of an arm’s length purchaser with respect to this
Agreement and the transactions contemplated hereby. The Company further acknowledges that the Investors are not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the
transactions contemplated hereby and any advice given by the Investors or any of their respective Representatives or agents in connection with this Agreement and the transaction contemplated hereby is merely incidental to the Investor’s
purchase of the Shares. The Company further represents to the Investors that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its
Representatives. Any review of the Company by the Investors, the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of the Investors and shall not be on behalf of the Company, its
Affiliates, or their respective shareholders, directors, officers, employees, advisors or other representatives and shall not affect any of the representations or warranties contained herein or the remedies of the Investors with respect thereto.

 Section 4.23 No Additional Agreements.  

Other than the Stockholders Agreement, the Company does not have any agreement or understanding with the Investors with respect to the
transactions contemplated by this Agreement. 
 Section 4.24 Title. 

(a) Except as would not materially affect the value of such Properties or materially interfere with the use made and proposed to be made of
such Properties, each of the Company and its Subsidiaries has good and marketable title to its Property reflected as owned by it as Previously Disclosed, and such Property is not subject to any Lien except (i) Incidental Liens, (ii) Liens
granted pursuant to the Credit Agreement and (iii) first priority liens with respect to the Properties of the Company and its subsidiaries Previously Disclosed, and (b) each of the Company and its Subsidiaries holds its leased Properties
under valid and binding leases, with such exceptions as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

Section 4.25 Contracts. 

(a) The Company has filed with the SEC all “material contracts” (as such term is defined in Item 601(b)(10) of Regulation S-K of
the Securities Act and the Exchange Act) that are required to be filed as exhibits to the Company SEC Documents and there are no contracts or other documents that are required under the Exchange Act to be described in the Company SEC Documents that
are not so described. 
 (b) Each of the material contracts to which the Company is a party that have been filed by the Company with the SEC
pursuant to the Securities Act or the Exchange Act, have been duly and validly authorized, executed and delivered by the Company and constitute the legal, valid and binding agreements of the Company, enforceable by and against it in accordance
with their respective terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating 

  
 19 

 
to enforcement of creditors’ rights generally, and general equitable principles relating to the availability of remedies, and except as rights to indemnity or contribution may be limited by
federal or state securities laws and the public policy underlying such laws. 
 Section 4.26
Employee Benefits. 
 (a) Any “employee benefit plan” (as defined under ERISA) or other employee benefit plan, program
policy or arrangement (i) established, contributed to, sponsored or maintained by the Company or any Subsidiary or (ii) in which the Company or any Subsidiary has any present or future liability (each a “Benefit Plan”) are
in compliance in all material respects with ERISA, the Code and other applicable Laws. Except as set forth on Schedule 4.26(a), no Benefit Plan is subject to Title IV of ERISA and neither the Company, its Subsidiaries nor any of their respective
ERISA Affiliates sponsors or contributes to, or has or had any liability or obligation in respect of, any employee benefit plan subject to Title IV of ERISA. With respect to any Benefit Plan, no actions, suits or claims (other than routine claims
for benefits in the ordinary course) are pending or threatened, that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Except as set forth on Schedule 4.26, n either the Company nor any Subsidiary
provides any current or former employee of the Company any post-employment or post-retirement health, medical or life insurance benefits, except as required by applicable Law or where the employee pays the entire cost of coverage. Except as set
forth on Schedule 4.26(a), no Benefit Plan exists that, as a result of the transactions contemplated by this Agreement (whether alone or in connection with any subsequent event(s)), could result in (i) severance pay or any increase in severance
pay upon any termination of employment after the date of this Agreement, (ii) accelerate the time of payment or vesting or result in any payment or funding (through a grantor trust or otherwise) of compensation or benefits under, increase the
amount payable or result in any other material obligation pursuant to, any of the Benefit Plans or (iii) result in payments which would not be deductible under Section 280G of the Code. 

(b) No “reportable event” (as defined under ERISA) that would reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect, has occurred or is reasonably expected to occur with respect to any Benefit Plan; no Benefit Plan, if such Benefit Plan were terminated, would have any “amount of unfunded benefit liabilities” (as defined under
ERISA);none of the Company, any of the Subsidiaries or any of their respective ERISA Affiliates have incurred or reasonably expect to incur any material liability under (A) Title IV of ERISA with respect to termination of, or withdrawal from,
any “employee benefit plan” or (B) Sections 412, 430, 4971, 4975 or 4980B of the Code; and each Benefit Plan that is intended to be qualified under Section 401(a) of the Code is the subject of a currently effective determination
letter (or an opinion letter) stating that it is so qualified, and, to the Knowledge of the Company, nothing has occurred, whether by action or failure to act, which would reasonably be expected to cause the loss of such qualification. 

Section 4.27 Takeover Statutes 

The Board has taken all actions necessary to ensure that no “control share acquisition,” “business combination” or other
similar anti-takeover statute or regulation is applicable to the transactions contemplated by the this Agreement and the Stockholders Agreement. 

Section 4.28 No Further Reliance.  

The Company acknowledges that it is not relying upon any representation or warranty made by the Investors not set forth in this Agreement or
the Stockholders Agreement. 
 Section 4.29 Off Balance Sheet Arrangements. 

There is no transaction, arrangement, or other relationship between the Company and an unconsolidated or other off balance sheet entity that is
required to be disclosed by the Company in the Company SEC Documents and is not so disclosed or that otherwise would be reasonably likely to have a Material Adverse Effect. 

  
 20 

 Section 4.30 Transactions With Affiliates. 

 None of the officers, directors or employees of the Company or any of its Subsidiaries is presently a party to any transaction with the
Company or any of its Subsidiaries (other than for ordinary course services as employees, officers or directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real
or personal property to or from, or otherwise requiring payments to or from any such officer, director or employee or, to the Knowledge of the Company or any of its Subsidiaries, any corporation, partnership, trust or other entity in which any such
officer, director, or employee has a substantial interest or is an officer, director, trustee or partner. 

Section 4.31 Acknowledgement Regarding Investors’ Trading Activity.  

The Company acknowledges and agrees that other than as set forth in this Agreement and the Stockholders Agreement (i) the Investors have
not been asked to agree, nor has any Investor agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities for
any specified term; and (ii) the Investors shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction. The Company further understands and acknowledges that the
Investors may engage in hedging and/or trading activities at various times during the period that the Acquired Shares are outstanding, including, without limitation, during the periods that the value of the Acquired Shares are being determined and
(b) such hedging and/or trading activities, if any, can reduce the value of the existing shareholders’ equity interest in the Company both at and after the time the hedging and/or trading activities are being conducted. The Company
acknowledges that such aforementioned hedging and/or trading activities do not constitute a breach of this Agreement or the Stockholders Agreement. 

Section 4.32 Shell Company Status 

The Company is not, and has never been, an issuer identified in Rule 144(i)(1) of the Securities Act. 

Section 4.33 HSR Matters 

(a) As of the date hereof and as of the Closing Date, all assets held by the Company, its Subsidiaries and any other entities
“controlled” (within the meaning set forth in the HSR Act), directly or indirectly, by the Company, are exempt assets under the HSR Act, pursuant to 16 C.F.R. § 801.21, 16 C.F.R. § 802.2 and/or 16 C.F.R. § 802.5, other
than any assets the total value of which is less than $70.9 million in the aggregate. 
  (b) Schedule 4.33(b) sets forth a list of all
entities that are not “controlled” (within the meaning set forth in the HSR Act) by the Company or its Subsidiaries, in which the Company or a Subsidiary thereof holds equity interests, as well as a description and the value of any such
equity interests held, which schedule shall be updated as of the Closing Date. 
 ARTICLE V 

REPRESENTATIONS AND WARRANTIES OF THE INVESTOR 

The Investors severally but not jointly represent and warrant to the Company that: 

Section 5.1 Organization and Authority.  

Each Investor is duly formed and validly existing in good standing in the jurisdiction and as the form of business entity set forth on Annex 1
hereto, and has all corporate power and authority to own its property and assets and conduct its business in all material respects as currently conducted and has been duly qualified as a 

  
 21 

 
foreign business entity for the transaction of business and is in good standing under the laws of each other jurisdiction in which it owns or leases properties, or conducts any business so as to
require such qualification, except where the failure to so qualify or be in good standing would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on each Investor’s ability to consummate the
transactions contemplated hereby on a timely basis. 
 Section 5.2 Authorization.  

Each Investor has full right, power, authority and capacity to execute and deliver this Agreement and to perform its obligations under this
Agreement. The execution, delivery and performance by each Investor of this Agreement and the consummation of the transactions contemplated by this Agreement have been duly authorized by each Investor’s board of directors or managing members or
partners, as the case may be, and no further approval or authorization by any of its stockholders, members, partners or other equity owners is required. This Agreement constitutes the valid and binding obligation of each Investor, enforceable
against such Investor in accordance with its terms, except as such may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization or other similar Laws affecting creditors’ rights generally and by general equitable principles
and except as may be limited by applicable Law and public policy. 
 Section 5.3 Non-Contravention;
Governmental Authorization. 
 (a) The execution, delivery and performance by each Investor of this Agreement and the consummation
of the transactions contemplated hereunder will not: (1) conflict with or violate any provision of its articles of incorporation, bylaws, limited partnership agreement or similar governing documents; or (2) assuming compliance with the
statutes and regulations referred to in Section 5.3(c), (i) conflict with or result in any breach of, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give rise to any right
of termination, acceleration or cancellation under any agreement, lease, mortgage, license, indenture or any other contract to which such Investor is a party or by which its properties may be bound or affected; or (ii) conflict with or violate
any order, Law, statute, rule or regulation of any Governmental Entity, applicable to the Investor, except in the case of clause (2)(i) and (2)(ii), as would not, individually or in the aggregate, reasonably be expected to materially and
adversely affect the Investor’s ability to perform its obligations under this Agreement or consummate the transactions contemplated hereby on a timely basis. 

(b) No authorization, approval, consent or license of any government, governmental instrumentality or court, domestic or foreign (other than
under the Securities Act and the securities or blue sky laws of the various states and under any applicable HSR Laws) is required for the purchase of the shares underlying the Backstop Commitment, if any, to be purchased by each Investor hereunder
and the consummation by each Investor of the transactions contemplated by this Agreement. 
 (c) Each approval, consent, order,
authorization, designation, declaration or filing by or with any regulatory, administrative or other Governmental Entity necessary in connection with the execution and delivery by each Investor of this Agreement and the consummation of the
transactions contemplated herein (except for such additional steps as may be required by the NASDAQ or such additional steps as may be necessary to qualify the Acquired Shares under federal securities, state securities or blue sky Laws) has been
obtained or made and is in full force and effect, except as would not, individually or in the aggregate, reasonably be expected to materially and adversely affect each Investor’s ability to perform its obligations under this Agreement or
consummate the transactions contemplated hereby on a timely basis. 
 Section 5.4 Compliance with
Laws.  
 Neither the Investor, nor, to the knowledge of the Investor, any other Persons acting on its behalf, is in material
violation of any applicable federal, state, local, foreign or other law, statute, regulation, rule, ordinance, code, convention, directive, order, judgment or other legal requirement of any Governmental Entity, except

  
 22 

 
where such violation would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Investor to consummate the transitions
contemplated by this Agreement. To the knowledge of each Investor, neither the Investor or any other Persons acting on its behalf is being investigated with respect to, or has been overtly threatened to be charged with or given notice of any
violation of, any applicable Law, except for such of the foregoing as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Investor to consummate the transitions contemplated by
this Agreement. 
 Section 5.5 Securities Act Compliance.  

(a) The Acquired Shares being acquired by such Investor hereunder are being acquired for its own account, for the purpose of investment and not
with a view to or for sale in connection with any public resale or distribution thereof in violation of applicable securities Laws; provided, however, that by making the representations herein, the Investor does not agree to hold any
of the Acquired Shares for any minimum or other specific term and reserves the right to dispose of the Acquired Shares at any time in accordance with or pursuant to a registration statement or an exemption from registration under the Securities Act.
Each Investor is an “accredited investor” within the meaning of Rule 501(a) promulgated under the Securities Act and is knowledgeable, sophisticated and experienced in business and financial matters, and it fully understands the
limitations on ownership, sale, transfer or other disposition of the Acquired Shares. Each Investor understands that the Acquired Shares may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from
registration is available, except under circumstances where neither such registration nor such an exemption is required by Law. 
 (b) Each
Investor understands and agrees that the Acquired Shares are being offered in a transaction not involving any public offering within the meaning of the Securities Act, that such Acquired Shares have not been and, except as contemplated by the
registration rights provided for in the Stockholders Agreement, will not be registered under the Securities Act and that such Acquired Shares may be offered, resold, pledged or otherwise transferred only (i) in a transaction not involving a
public offering, (ii) pursuant to an exemption from registration under the Securities Act, including, without limitation, the exemption provided by Rule 144 thereunder (if available), (iii) pursuant to an effective registration statement
under the Securities Act or (iv) to the Company or one of its Subsidiaries, in each of cases (i) through (iv) in accordance with any applicable state and federal securities Laws. 

Section 5.6 Short Sales.  

Since being contacted by the Company, each Investor has not taken any action that has caused such Investor to have, directly or indirectly,
sold or agreed to sell any shares of Common Stock, effected any short sale, whether or not against the box, established any “put equivalent position” (as defined in Rule 16a-1(h) under the Exchange Act) with respect to the Common Stock,
granted any other right (including, without limitation, any put or call option) with respect to the Common Stock or with respect to any security that includes, relates to or derived any significant part of its value from the Common Stock. 

Section 5.7 Market Stabilization. 

Each Investor has not taken, directly or indirectly, any action designed to or that might reasonably be expected to result in stabilization or
manipulation of the price of the shares of Common Stock to facilitate the sale or resale of the Backstop Commitment. 
 
Section 5.8 Control.  
 Each Investor is acquiring the Acquired Shares in the ordinary course of its business and,
other than as set forth in this Agreement or the Stockholders Agreement, not with the purpose nor with the effect of changing or influencing the control of the Company, nor in connection with or as a participant in any transaction having such
purpose or effect. 

  
 23 

 Section 5.9 Financial Capability.  

At the Closing each Investor will have available funds necessary to consummate the Closing on the terms and conditions contemplated by this
Agreement. 
 Section 5.10 Brokers and Finders.  

Neither the Investor nor any of its Affiliates or any of their respective officers or directors has employed any broker or finder or incurred
any liability for any financial advisory fee, brokerage fees, commissions or finder’s fee, and no broker or finder has acted directly or indirectly for such Investor or any of its Affiliates or any of their respective officers or directors in
connection with this Agreement or the transactions contemplated hereby. 
 Section 5.11
Information.  
 Each Investor and its advisers have been furnished with all materials relating to the business, finances and
operations of the Company and materials relating to the offer and sale of the Acquired Shares which have been requested by such Investor or its advisers. Each Investor is familiar with the business in which the Company is engaged, and based upon its
knowledge and experience in financial and business matters, such Investor is familiar with the investments of the type that it is undertaking to purchase; is fully aware of the risks involved in making an investment of this type; and is capable of
evaluating the merits and risks of this investment. None of the representations set forth in this Section 5.11 shall derogate from or limit such Investor’s right to rely on any of the representations or warranties of the Company set forth
in this Agreement. 
 Section 5.12 Confidentiality.  

(a) The Company and each Investor acknowledge and agree that as of the date hereof the Confidentiality Agreement, and all provisions and
obligations thereof, remain in full force and effect. 
 (b) Each Investor and its Affiliates further acknowledge that, in receiving
information about the terms of this Agreement and about the Company in connection with this Agreement, they may have received material non-public information within the meaning of the U.S. federal securities laws. As such, if and to the extent that
such Investor or its Affiliates have received material non-public information within the meaning of the U.S. federal securities laws, neither the Investor nor its Affiliates has purchased or sold, and none of them will purchase (other than in
connection with the Backstop Commitment and the Additional Purchase Commitment) or sell, any securities of the Company in a transaction that would violate applicable U.S. federal securities laws as a result of such Investor or its Affiliates having
any such material non-public information, from the date of this Agreement until after the Closing Date or the earlier termination of the Investor’s obligations under this Agreement. 

Section 5.13 Investor Activities.  

Each Investor is not a broker-dealer and does not need to be registered as a broker-dealer. 

Section 5.14 No Further Reliance.  

Each Investor acknowledges that it is not relying upon any representation or warranty made by the Company not set forth in this Agreement or in
the Stockholders Agreement. Without derogating from or limiting the Investor’s right to rely on representations and warranties of the Company set forth in this Agreement, each Investor acknowledges that it has conducted such review and analysis
of the business, assets, condition, operations and prospects of the Company and its Subsidiaries that such Investor considers sufficient for purposes of the purchase of the Acquired Shares. 

  
 24 

 ARTICLE VI

CONDITIONS TO CLOSING 

Section 6.1 Conditions to the Obligations of the Company and the Investor. 

The obligations of the Company and the Investors to effect the Closing shall be subject to the following conditions: 

(a) receipt of all approvals and authorizations of, filings with, and notifications to, or expiration or termination of any applicable waiting
period, under the HSR Act and competition or merger control laws of any jurisdictions required to consummate the transactions contemplated hereunder; 

(b) no provision of any applicable Law and no judgment, injunction, order or decree shall prohibit the consummation of any of the transactions
contemplated at the Closing; 
 (c) the consummation of the Rights Offering in accordance in all material respects with the terms and
subject to the conditions set forth in Section 2.1(d) hereof; 
 (d) the Company having obtained Company Stockholder Approval; 

(e) The Company shall have obtained each of the consents and/or waivers set forth on Schedule 6.1(e); and 

(f) There shall not have occurred (i) a material adverse change in the financial markets in the United States, any outbreak of
hostilities or escalation thereof or other calamity or crisis or any change or development involving a prospective change in national or international political, financial or economic conditions, or (ii) a suspension or material limitation on
trading, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices have been required, by any securities exchange or by such system or by order of the SEC, the Nasdaq or any other governmental authority, or (iii) a
material disruption has occurred in commercial banking or securities settlement or clearance services in the United States, or (iv) if a banking moratorium has been declared by either Federal or New York authorities. 

Section 6.2 Conditions to the Obligations of the Company.  

The obligations of the Company to effect the Closing shall be subject to the following conditions: 

(a) all representations and warranties of the Investors in this Agreement shall be true and correct as of the date hereof and as of the Closing
Date (except to the extent that any such representation and warranty expressly speaks as of an earlier date, in which case such representation and warranty shall be true and correct as of such earlier date); 

(b) the Investors shall have performed in all material respects all of its obligations hereunder required to be performed by it at or prior to
the Closing; 
 (c) the Company shall have received a certificate, signed by an officer of the General Partner (or similar entity) of each
Investor, certifying as to the matters set forth in Sections 6.2(a) and 6.2(b); 
 (d) the Investors shall have executed the Stockholders
Agreement; and 

  
 25 

 (e) the Investors shall have executed and delivered a representation letter to the Company in the
form of Schedule 6.2(e) to grant the Investors an exemption from the ownership limitations contained in the Company’s articles of restatement. 

Section 6.3 Conditions to the Obligations of the Investor.  

The obligations of the Investors to effect the Closing shall be subject to the following conditions: 

(a) The 10b-5 Representation shall be true and correct in all respects (A) in the case of the Registration Statement and any
post-effective amendments thereto, at the respective times referred to in Section 2.1(c), and in the case of the Prospectus, as of its date, and (B) as of the Closing Date, except that in the case of this clause (B) all references to
any time period or date referred to in Section 2.1(c) shall be deemed to be references to the Closing Date. All other representations and warranties of the Company contained in this Agreement (i) that are qualified by materiality, Material
Adverse Effect or words of similar import, shall be true and correct as of the date hereof and as of the Closing Date (except to the extent that any such representation and warranty expressly speaks as of an earlier date, in which case such
representation and warranty shall be true and correct as of such earlier date) and (ii) that are not qualified by materiality, Material Adverse Effect or words of similar import, shall be true and correct in all material respects as of the date
hereof and as of the Closing Date (except to the extent that any such representation and warranty expressly speaks as of an earlier date, in which case such representation and warranty shall be true and correct in all material respects as of such
earlier date); 
 (b) the Company shall have performed in all material respects all of its obligations hereunder required to be performed by
it at or prior to the Closing; 
 (c) the Investors shall have received a certificate, signed by an officer of the Company, certifying as to
the matters set forth in Sections 6.3(a) and 6.3(b); 
 (d) since the date of this Agreement, there shall not have been any Material Adverse
Effect or any effect that would, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect; 
 (e)
the shares of Common Stock to be issued in the Rights Offering shall be approved for listing on the NASDAQ; 
 (f) the Company shall have
executed the Stockholders Agreement; 
 (g) Michael Baumann, the Chairman and Chief Executive Officer of the Company and David Levin, the
Vice Chairman and President of the Company, each shall have acquired from the Company, in a transaction exempt from registration under the Securities Act, a number of shares of Common Stock equal to the product of (i)(A) 15,797,788 divided by (B)
the number of shares of Common Stock outstanding on the Record Date, times (ii) the number of shares of Common Stock owned by him on the Record Date at the Rights Subscription Price (the “Management Shares”); 

(h) The Board shall have taken all requisite action to grant the Investors an exemption from the ownership limitations contained in the
Company’s articles of restatement; 
  (i) the Investors shall have received signed opinions, dated as of the Closing Date, of
Morrison & Foerster LLP, counsel for the Company, substantially in a form reasonably acceptable to the Investors and covering matters customary for transactions contemplated by this Agreement, including, without limitation, due
authorization and delivery, valid private placement, non-contravention and enforceability; 
  (j) The Company shall have paid all fees
and expenses payable to the Investors pursuant to Section 10.7; 
 (k) The Investors shall have received on and as of the Closing Date
satisfactory evidence of the good standing of the Company in the State of Maryland, in writing or any standard form of telecommunication from the appropriate governmental authorities of such jurisdiction; 

  
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 (l) Except to the extent approved in advance in writing by the Investor, the Company shall not
have any Indebtedness in excess of the amounts set forth in the Form 10-Q, except as may be incurred pursuant to Section 7.12; 
 (m) The
Common Stock (i) shall be designated for quotation or listed on the NASDAQ and (ii) shall not have been suspended, as of the Closing Date, by the SEC or the NASDAQ from trading on the NASDAQ nor shall suspension by the SEC or the NASDAQ
have been threatened, as of the Closing Date, either (A) in writing by the SEC or the NASDAQ or (B) by falling below the minimum listing maintenance requirements of the NASDAQ; and 

(n) The Board shall have adopted the policy set forth on Annex V and such policy shall remain in full force and effect and shall not
have been rescinded or amended. 
 ARTICLE VII 

COVENANTS 
 
Section 7.1 Stockholder Approvals; Proxy Statement 
 (a) The Company agrees to use its reasonable best efforts to call and
hold a meeting of the stockholders of the Company for the purpose of obtaining the Company Stockholder Approval and the transactions contemplated hereunder within 45 days following the date of this Agreement. 

(b) As promptly as reasonably practicable following the date of this Agreement, but in no event later than one (1) Business Day following
the date of this Agreement, the Company will prepare and file the Proxy Statement. The Company shall use its reasonable best efforts to have the Proxy Statement cleared by the SEC and distribute the Proxy Statement to the Company’s stockholders
in accordance with applicable SEC rules. The Company shall provide to the Investors, as promptly as reasonably practicable after receipt thereof, any written comments from the SEC or any written request from the SEC or its staff for amendments or
supplements to the Proxy Statement and shall provide the Investors with copies of all correspondence between the Company, on the one hand, and the SEC and its staff, on the other hand, relating to the Proxy Statement. The Company will provide the
Investors with prompt notice of the issuance by the SEC of any stop order or of any order preventing or suspending the use of the Registration Statement, of the initiation or threatening of any proceeding for any such purpose, or of any request by
the SEC for the amending or supplementing either the Registration Statement or the Proxy Statement or for additional information, and in each such case, provide the Investors with a reasonable opportunity to review any such comments, inquiries,
request or other communication from the SEC and to review any amendment or supplement to the Registration Statement and the Proxy Statement before any filing with the SEC, and to duly consider in good faith any comments consistent with this
Agreement and any other reasonable comments of the Investors and their counsel and in the event of the issuance of any stop order or of any order preventing or suspending the use of the Registration Statement or suspending any such qualification, to
use promptly its reasonable best efforts to obtain its withdrawal. 
 (c) Subject to the Board’s duties under Maryland law, the Proxy
Statement shall include the Board’s recommendation that the stockholders vote in favor of the Company Stockholder Approval. 
 (d) The
Investors agree to furnish to the Company in writing all information concerning the Investors and theirs Affiliates as the Company may reasonably request in connection with any Stockholder Meeting. Notwithstanding anything to the contrary stated
above, prior to filing or mailing the Proxy Statement (or, in each case, any amendment or supplement thereto) or responding to any comments of the SEC or its staff with respect thereto, the Company shall provide the Investors with a reasonable
opportunity to review and comment on such document or response and shall duly consider in good faith any comments consistent with this Agreement and any other reasonable comments of the Investors and their counsel. Any communications by the Company
to the Investors pursuant to this Section 7.1 may made by email to an account designated by the Investors upon request by the Company. 

  
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 Section 7.2 Conduct of the Business. 

Except (a) with the prior written consent of the Investors (which consent shall not be unreasonably withheld or delayed), (b) as
contemplated by this Agreement or the Stockholders Agreement, (c) as required by applicable Law, or (d) as required by the terms and conditions of contracts and other arrangements disclosed as exhibits to the Company’ SEC Documents,
after the date of this Agreement until the earlier of the Closing or termination of this Agreement in accordance with the terms hereof, the Company shall, and shall cause each of its Subsidiaries to, conduct their respective business in all material
respects in the ordinary course consistent with the past practice of the Company and its Subsidiaries; provided, however, that in no event shall the Company engage in any sale, issuance, or authorization of the issuance or sale of any
capital stock or other security of the Company or any of its Subsidiaries to the extent that any such sale, issuance, or authorization of issuance or sale, if it was to occur immediately following the Closing, would require the approval of the
Investors pursuant to the terms of the Stockholders Agreement. 
 Section 7.3 Efforts. 

 (a) From the date hereof until the earlier of the Closing and the date that this Agreement is terminated pursuant to Section 8.1, the
Investors and the Company shall to the extent required (i) promptly file any and all Notification and Report Forms required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) with respect
to the transactions contemplated hereby, and use commercially reasonable efforts to cause the expiration or termination of any applicable waiting periods under the HSR Act; (ii) use commercially reasonable efforts to cooperate with each other
in (A) determining whether any filings are required to be made with, or consents, permits, authorizations, waivers, clearances, approvals, and expirations or terminations of waiting periods are required to be obtained from, any other
Governmental Entities in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby and (B) timely making all such filings and timely obtaining all such consents, permits,
authorizations or approvals; (iii) use commercially reasonable efforts to supply to any Governmental Entity as promptly as practicable any additional information or documents that may be requested pursuant to any Law or by such Governmental
Entity; (iv) promptly inform the other party of any substantive meeting, discussion, or communication with any Governmental Entity (and shall supply to the other party any written communication or other written correspondence or memoranda
prepared for such purpose, subject to applicable Laws relating to the exchange of information) in respect of any filings, investigation or inquiry concerning the transactions contemplated herein, and shall consult with the other party in advance
and, to the extent permitted by such Governmental Entity, give the other party the opportunity to attend and participate thereat; (v) use commercially reasonable efforts to take, or cause to be taken, all other actions and do, or cause to be
done, all other things necessary, proper or advisable to consummate the Closing and the other transactions contemplated hereby; and (vi)to obtain all necessary permits, consents, orders, approvals and authorizations of, or any exemption by, all
third Persons required to consummate the transactions contemplated by this Agreement and the Stockholders Agreement. 
 (b) The Company
shall use its reasonable best efforts to take or cause to be taken all actions, and do or cause to be done all things, reasonably necessary, proper or advisable on its part under this Agreement and applicable laws to consummate and make effective
the transactions contemplated by this Agreement, including: 
 (i) defending, with the cooperation of the Investors to the extent they are
named in any such lawsuit, action or proceeding, any lawsuits or other actions or proceedings, whether judicial or administrative, challenging this Agreement or any other agreement contemplated by this Agreement or the consummation of the
transactions contemplated hereby and thereby, including seeking to have any stay or temporary restraining order entered by any court or other governmental entity vacated or reversed; and 

(ii) executing, delivering and filing, as applicable, any additional ancillary instruments or agreements reasonably necessary to consummate
the transactions contemplated by this Agreement and to fully carry out the purposes of this Agreement and the transactions contemplated hereby and thereby. 

  
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 Section 7.4 Financing; Exclusivity.  

(a) The Company agrees that, during the Exclusivity Period (as defined below), it and it’s respective Representatives and Affiliates will
not enter into any agreement, discussion or negotiation with, or provide information to, or solicit or encourage or consider any inquires or proposals from, any other person with respect to any equity offering or other financing of the Issuer using
any combination of debt and/or equity (a “Financing”), except for first mortgage loans with respect to individual apartment communities on market terms and conditions. “Exclusivity Period” shall mean a period
beginning on the date hereof and ending on the earlier of (i) February 15, 2014 and (ii) the date on which the Investors inform the Issuer that they are no longer pursuing the Rights Offering or any similar transaction.
Notwithstanding anything herein to the contrary, the Company shall be permitted to enter into any agreement, discussion or negotiation with, or provide information to, or solicit or encourage or consider any inquires or proposals from, any other
person with respect to a Financing or Acquisition Transaction in response to an unsolicited proposal that the Board determines in good faith could reasonably be expected to lead to a Superior Transaction (and in each case following execution of a
customary confidentiality agreement). 
 (b) The Company shall notify the Investors promptly (and in any event within 48 hours) of any
determination of the Board in good faith that a proposal received by the Company for a Financing or Acquisition Transaction could reasonably be expected to lead to a Superior Transaction. 

(c) If the Board determines in good faith after receiving the advice of its financial advisors and outside legal counsel, in response to a
bona fide written proposal for a Financing or Acquisition Transaction that was unsolicited and that did not otherwise result from a breach of this Section 7.4, that such proposal for a Financing or Acquisition Transaction constitutes a proposal
for a Superior Transaction, the Company may enter into a definitive agreement to effect such Superior Transaction and terminate this Agreement pursuant to Section 8.1(g); provided, however, that the Company shall not under any
circumstance related to such Superior Transaction terminate this Agreement pursuant to Section 8.1(f) below or terminate this Agreement pursuant to this Section 7.4(c) and Section 8.1(g), and any purported termination shall be void
and of no force or effect, unless the Company prior to or concurrently with such action pays to the Investors the Termination Fee. 
 
Section 7.5 Periodic Filings; Financial Statements 
 The financial statements, together with the supporting schedules, if
any, and notes, to be included in the Registration Statement and the Prospectus will present fairly in all material respects the consolidated financial condition of the Company and its consolidated Subsidiaries at the dates indicated and the
consolidated results of operations, cash flows and changes in stockholders’ equity of the Company and its consolidated Subsidiaries for the periods specified therein, and such financial statements and supporting schedules, if any, will be
prepared in conformity with GAAP applied on a consistent basis throughout the periods covered thereby; The selected financial data and the summary financial information to be included in the Registration Statement and the Prospectus will present
fairly the information shown therein and will be compiled on a basis consistent, in all material respects, with that of the audited financial statements to be included in the Registration Statement and the Prospectus; the pro forma financial
statements and the related notes thereto to be included in the Registration Statement and the Prospectus will present fairly the information shown therein and will be compiled on the bases described therein, and the assumptions to be used in the
preparation thereof will be reasonable and the adjustments used therein will be appropriate to give effect to the transactions and circumstances referred to therein, and will comply as to form in all material respects with Article 11 of Regulation
S-X; to the extent applicable, all disclosures to be disclosed in the Registration Statement and the Prospectus regarding “non-GAAP financial measures” (as defined in the rules and regulations of the SEC) will comply in all material
respects with Regulation G of the Exchange Act and Item 10 of Regulation S-K of the Securities Act and the Exchange Act. 

  
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 Section 7.6 Publicity.  

On the date hereof, the Company shall issue a press release in the form attached as Annex II hereto. No other public release or announcement
concerning the transactions contemplated hereby shall be issued by any party without the prior consent of the other party (which consent shall not be unreasonably withheld, conditioned or delayed), except as such release or announcement may be
required by Law or the rules or regulations of any United States exchange, in which case the party required to make the release or announcement shall, to the extent reasonably practicable, allow the other party reasonable time to comment on such
release or announcement in advance of such issuance; provided that in no event shall any such press release or announcement name the Investors without their prior written consent, except to the extent necessary to comply with law or regulation. The
provisions of this Section 7.6 shall not restrict the ability of a party hereto to summarize or describe the transactions contemplated by this Agreement in any prospectus or similar offering document or other report required by Law, regulation
or stock exchange rule so long as the other party is provided a reasonable opportunity to comment on such disclosure in advance; provided that if such filings names the Investors, the Company shall obtain the prior approval of the Investor, and take
into account any comments they may have thereto unless, upon the advice of counsel to the Company, the filing is legally required to be made as proposed by the Company without making such changes to reflect such comments. 

Section 7.7 Share Listing.  

The Company shall as promptly as practicable after the date of this Agreement use its reasonable best efforts to cause the Rights, during the
pendency of the Rights Offering (to allow for the transferability of the Rights), and the Common Stock to be issued upon exercise of the Rights, to be approved for listing on the NASDAQ. 

Section 7.8 Tax Related Covenants.  

The Company will use its reasonable best efforts to continue to be organized and operated in conformity with the requirements for qualification
and taxation as a REIT under the Code for its taxable year ending December 31, 2013 and thereafter, subject to any future determination by the Company’s board of directors in accordance with the Stockholders Agreement that it is no longer
in the Company’s best interests to qualify as a REIT. 
 Section 7.9 Rule 144. 

The Company will use its reasonable best efforts to timely file all reports and other documents required to be filed by it under the Securities
Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder (or, if the Company is not required to file such reports, it will, upon the request of any Investor, make publicly available such information as necessary to permit
sales pursuant to Rule 144 of the Securities Act), and will use reasonable best efforts to take such further action as the Investors may reasonably request, at the expense of the Investors, all to the extent required from time to time to enable the
Investors to sell Acquired Shares without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 of the Securities Act. 

Section 7.10 Confidentiality. 

The Company and the Investors acknowledge and agree that from the date hereof until the first anniversary of the date hereof, the Investors
will, and will cause their Representatives, to keep all information regarding the Company (whether prepared by the Company, its Representatives or otherwise, whether in oral, written, electronic or other form) received under the terms of the
Confidentiality Agreement or pursuant to this Agreement (collectively, the “Information”) confidential except (i) the Investors may disclose Information to their Representatives, (ii) Information that becomes generally
available to the public other than as a result of a 

  
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disclosure in violation of this Agreement by the Investors or their Representatives, (iii) Information that was available to the Investors on a nonconfidential basis prior to its disclosure,
directly or indirectly, by the Company or its Representatives, (iv) Information that becomes available to the Investors on a nonconfidential basis from a person other than the Company who, to the knowledge of the Investors, is not bound by a
confidentiality agreement with the Company or otherwise prohibited from transferring such information to the Investor, (v) Information that the Company agrees may be disclosed, (vi) Information that was or is developed by the Investors
their Representatives without the use of or reference to the Information or any derivative thereof, (vii) to the extent the Investors are required by Law, legal process or regulatory authority to disclose such Information and (viii) the
Investors may disclose Information in connection with a routine audit or general inquiry by a governmental or regulatory organization. After such time as the Investors no longer have a designee on the Board in accordance with and pursuant to the
Stockholders Agreement, the Company shall notify the Investors immediately upon the opening of the next open trading window during which members of the Board are permitted to effect transactions in securities of the Company. 

Section 7.11 Market Stabilization. 

Each Investor will not take, directly or indirectly, any action designed to or that might reasonably be expected to constitute manipulation of
the price of the shares of Common Stock to facilitate the sale or resale of the Backstop Commitment. 

Section 7.12 Incurrence of Indebtedness 

Without the prior consent of the Investors, the Company shall not incur any Indebtedness prior to the Closing other than (x) drawdowns in
the ordinary course of business consistent with past practice under the Company’s $14.0 million senior secured revolving credit facility for which BMO Harris Bank N.A. serves as the sole lead arranger and administrative agent (the “Current
Loan”) as may be amended, restated or replaced from time to time; provided that (i) the aggregate outstanding principal amount of any indebtedness under this clause (x) may not exceed $14.0 million and (ii) the financial terms of
any amended, restated or replacement indebtedness may not be less favorable to the Company than the terms of the Current Loan as in effect on the date hereof; or (y) to refinance any Indebtedness upon maturity so long as the principal amount of
such new Indebtedness does not exceed the principal amount of such Indebtedness being refinanced, and that such new Indebtedness is on financial terms no less favorable to the Company than the Indebtedness being refinanced. 

ARTICLE VIII 

TERMINATION 
 
Section 8.1 Termination.  
 This Agreement may be terminated at any time prior to the Closing: 

(a) by mutual written agreement of the Company and the Investor; 

(b) by either the Company or the Investor, upon written notice to the other, in the event that the Closing does not occur on or before
February 15, 2014; provided, however; the right to terminate this Agreement pursuant to this Section 8.1(b) shall not be available to any party whose failure to fulfill any obligation under this Agreement shall have been the cause of, or
shall have resulted in, the failure of the Closing to occur on or prior to such date; 
 (c) by the Company by written notice to the
Investors (x) in the event of a breach by the Investors of any representation, warranty, covenant or agreement under this Agreement, where the effect of such breach would be to cause any of the conditions to the Closing set forth in Sections
6.1 and 6.2 to not be satisfied, and 

  
 31 

 
such breach is not cured by the Investors within twenty (20) Business Days following receipt of written notice from the Company of the breach or alleged breach or (y) in the event that
as of February 15, 2014, each of the conditions precedent to the transactions contemplated by this Agreement set forth in Article VI have been satisfied or waived (other than and other than those conditions that (i) by their nature cannot
be satisfied until the Closing Date, but each of which conditions shall be capable of being satisfied on the Closing Date and (ii) those conditions that have not been satisfied due to the Investors’ breach under this Agreement) and the
Investors fail to consummate such transactions (other than as a result of a breach of this Agreement by the Company); 
 (d) by the
Investors by written notice to the Company in the event of a breach by the Company of any representation, warranty, covenant or agreement under this Agreement, where the effect of such breach would be to cause any of the conditions to the Closing
set forth in Sections 6.1 and 6.3 to not be satisfied, and such breach is not cured by the Company within twenty (20) Business Days following receipt of written notice from the Investors of the breach or alleged breach; 

(e) by either the Company or the Investor, upon written notice to the other party, in the event that any Governmental Entity shall have issued
any order, decree or injunction or taken any other action restraining, enjoining or prohibiting any of the transactions contemplated by this Agreement, and such order, decree, injunction or other action shall have become final and nonappealable,
provided that the right to terminate this Agreement pursuant to this Section 8.1(e) shall not be available to any party that has initiated any proceeding that results in such order, decree, injunction or action, or that has not taken any
and all reasonable actions necessary to oppose, contest and resist, and to have lifted, rescinded or vacated, such order, decree or judgment before it became final and non-appealable; 

(f) by the Company, at any time prior to the completion of the Rights Offering upon written notice to the Investor; provided that if prior to
such termination the Company received a bona fide written proposed for a Financing or an Acquisition Transaction, then the Company shall pay the Termination Fee to the Investors in accordance with Section 10.16(b)); 

(g) by the Company, upon written notice to the Investors, if the Company shall have entered into a definitive agreement to effect a Superior
Transaction in compliance with the provisions of Section 7.4(c) and prior to or concurrently with such termination the Company pays the Termination Fee to the Investor; or 

(h) by the Investor, upon written notice to the Company, if the Company shall have entered into a definitive agreement to effect a Superior
Transaction (it being understood that the Company shall pay the Termination Fee to the Investors in accordance with Section 10.16(b)). 

Any notice of termination provided by the Company pursuant to this Section 8.1 (other than a termination pursuant to Section 8.1(c))
shall include an acknowledgment of its obligation to pay the Company Liquidated Damages Amount or the Termination Fee, as applicable. 
 
Section 8.2 Effects of Termination.  
 In the event of the termination of this Agreement as provided in
Section 8.1, this Agreement (other than Article IX which shall remain in full force and effect) shall forthwith become wholly void and of no further force and effect; except, subject to Section 10.16, for liabilities arising in respect of
breaches under this Agreement by any party prior to such termination and that the obligations set forth in Sections 3.1(c), 5.12 and 7.5 of this Agreement, the last sentence of Section 8.1, Article 9 and Article 10 of this Agreement shall
survive such termination. 

  
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 ARTICLE IX  

INDEMNIFICATION AND CONTRIBUTION 

Section 9.1 Indemnification. 

(a) Indemnification by the Company 

Whether or not the Rights Offering, the issuance of the Acquired Shares to the Investors or the other transactions contemplated hereby are
consummated or this Agreement is terminated, the Company (the “Indemnifying Party”) shall indemnify and hold harmless the Investors and each Affiliated Purchaser (as defined herein), their respective Affiliates and their respective
officers, directors, members, managers, partners, employees, agents, advisors and controlling persons (each, an “Indemnified Person”) from and against any and all losses, claims, damages, liabilities, amounts paid in settlement and
reasonable expenses, joint or several (“Liabilities”) incurred by such Indemnified Person or to which any such Indemnified Person may become subject arising out of or in connection with any claim, challenge, litigation,
investigation or proceeding (“Proceedings”) arising out of or relating to the Rights Offering, this Agreement or the Stockholders Agreement, the Registration Statement, any Preliminary Prospectus, the Prospectus, any Issuer Free
Writing Prospectus, the Investment Decision Package, any amendment or supplement thereto or the transactions contemplated by any of the foregoing and shall reimburse such Indemnified Persons for any reasonable legal fees and expenses or other
out-of-pocket expenses incurred in connection with investigating, responding to or defending any of the foregoing; provided that the foregoing indemnification will not apply to Liabilities to the extent that they resulted from (a) bad faith,
gross negligence or willful misconduct on the part of such Indemnified Person or (b) statements or omissions in the Registration Statement, any Preliminary Prospectus, the Rights Offering Prospectus, any Issuer Free Writing Prospectus or any
amendment or supplement thereto made in reliance upon or in conformity with information relating to such Indemnified Person furnished to the Company in writing by or on behalf of such Indemnified Person expressly for use in the Registration
Statement, any Preliminary Prospectus, the Prospectus, any Issuer Free Writing Prospectus or any amendment or supplement thereto. 
 (b)
Indemnification Procedures. 
 (i) Promptly after receipt by an Indemnified Person of notice of the commencement of any Proceedings
with respect to which the Indemnified Person may be entitled to indemnification hereunder, such Indemnified Person will, if a claim is to be made hereunder against the Indemnifying Party in respect thereof, promptly notify the Indemnifying Party in
writing of the commencement thereof; provided that the omission so to notify the Indemnifying Party will not relieve the Indemnifying Party from any liability that it may have hereunder except to the extent it has been materially prejudiced by such
failure. In case any such Proceedings are brought against any Indemnified Person and it notifies the applicable Indemnifying Party of the commencement thereof, such Indemnifying Party will be entitled to participate therein, and, to the extent that
it may elect by written notice delivered to such Indemnified Person, to assume the defense thereof, with counsel reasonably satisfactory to such Indemnified Person; provided that if the defendants in any such Proceedings include both such
Indemnified Person and the Indemnifying Party and such Indemnified Person shall have concluded that there may be legal defenses available to it that are different from or additional to those available to the Indemnifying Party, such Indemnified
Person shall have the right to select separate counsel, which selection shall be subject to the reasonable approval of the Indemnifying Party (it being understood and agreed that Schulte Roth & Zabel LLP is approved), to assert such legal
defenses and to otherwise participate in the defense of such Proceedings on behalf of such Indemnified Person. Upon receipt of notice from the applicable Indemnifying Party to such Indemnified Person of its election so to assume the defense of such
Proceedings and approval by such Indemnified Person of counsel, such Indemnifying Party shall not be liable to such Indemnified Person for expenses incurred by such Indemnified Person thereafter in connection with the defense thereof (other than
reasonable costs of investigation) unless (i) such Indemnified Person shall have employed separate counsel in connection with the assertion of legal defenses in accordance with the proviso to the preceding sentence (it being

  
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understood, however, that the Indemnifying Party shall not be liable for the expenses of more than one firm of counsel, plus local counsel, in any jurisdiction representing the Indemnified
Person), (ii) the Indemnifying Party shall not have employed counsel reasonably satisfactory to such Indemnified Person to represent such Indemnified Person within a reasonable time after notice of commencement of the Proceedings or
(iii) the Indemnifying Party shall have authorized in writing the employment of counsel for such Indemnified Person. 
 (ii) The
Indemnifying Party shall not be liable for any settlement of any Proceedings effected without its written consent (which consent shall not be unreasonably withheld, conditioned or delayed). If any settlement of any Proceeding is consummated with the
written consent of the Indemnifying Party or if there is a final judgment for the plaintiff in any such Proceedings, the Indemnifying Party agrees to indemnify and hold harmless each Indemnified Person from and against any and all Liabilities by
reason of such settlement or judgment in accordance with, and subject to the limitations of, the provisions of this Article 9. The Indemnifying Party shall not, without the prior written consent of an Indemnified Person (which consent shall not be
unreasonably withheld, conditioned or delayed), effect any settlement of any pending or threatened Proceedings in respect of which indemnity has been sought hereunder by such Indemnified Person unless (i) such settlement includes an
unconditional release of such Indemnified Person in form and substance satisfactory to such Indemnified Person from all liability on the claims that are the subject matter of such Proceedings and (ii) such settlement does not include any
statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person. 
 (iii) Given that
an Indemnified Person may be entitled to indemnification (a “Jointly Indemnifiable Claim”) from both the applicable Indemnifying Party, pursuant to this Agreement, and from any other Person, whether pursuant to applicable law, any
indemnification agreement, the organizational documents of such Person or otherwise (the “Indemnitee-Related Entities”), both the applicable Indemnifying Party acknowledges and agrees that such Indemnifying Party shall be fully and
primarily responsible for the payment to the Indemnified Person in respect of indemnification and advancement of expenses in connection with any such Jointly Indemnifiable Claim, pursuant to and in accordance with the terms of this Agreement,
irrespective of any right of recovery the Indemnified Person may have from the Indemnitee-Related Entities. Under no circumstance shall the applicable Indemnifying Party be entitled to any right of subrogation or contribution by the
Indemnitee-Related Entities and no right of recovery the Indemnified Person may have from the Indemnitee-Related Entities shall reduce or otherwise alter the rights of the Indemnified Person or the obligations of the applicable Indemnifying Party
hereunder. In the event that any of the Indemnitee-Related Entities shall make any payment to the Indemnified Person in respect of indemnification or advancement of expenses with respect to any Jointly Indemnifiable Claim, the Indemnitee-Related
Entity making such payment shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnified Person against the applicable Indemnifying Party, and the Indemnified Person shall execute all papers reasonably
required and shall do all things that may be reasonably necessary to secure such rights, including the execution of such documents as may be necessary to enable the Indemnitee-Related Entities effectively to bring suit to enforce such rights. Each
of the Indemnitee-Related Entities shall be third-party beneficiaries with respect to this Section 9.1(c), entitled to enforce this Section 9.1(c) against the applicable Indemnifying Party as though each such Indemnitee-Related Entity were
a party to this Agreement. 
 (c) Contribution 

If for any reason the foregoing indemnification is unavailable to any Indemnified Person or insufficient to hold it harmless, then the
applicable Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Person as a result of such Liabilities in such proportion as is appropriate to reflect not only the relative benefits received by such Indemnifying
Party on the one hand and such Indemnified Person on the other hand but also the relative fault of such Indemnifying Party on the one hand and the Indemnified Person on the other hand as well as any relevant equitable considerations. 

  
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 ARTICLE X 

MISCELLANEOUS 
 
Section 10.1 Interpretation 
 When a reference is made in this Agreement to “Preamble,” “Articles,”
“Sections” or “Annexes,” such reference shall be to a Preamble, Article or Section of, or Annex to, this Agreement unless otherwise indicated. The terms defined in the singular have a comparable meaning when used in the plural,
and vice versa. The table of contents and headings contained in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed followed by the words “without limitation.” No rule of construction against the draftsperson shall be applied in connection with the interpretation or enforcement of this Agreement, as this Agreement is the
product of negotiation between sophisticated parties advised by counsel. All references to “$” or “dollars” mean the lawful currency of the United States of America. Except as expressly stated in this Agreement, all references to
any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include any rules and regulations promulgated under the statute) and to any
section of any statute, rule or regulation include any successor to the section. References to “words of similar import” with respect to Material Adverse Effect or materiality, does not include knowledge qualifiers. 

Section 10.2 Survival.  

Each of the representations and warranties in this Agreement shall survive the Closing notwithstanding any investigation at any time made by or
on behalf of any party hereto until the later of (a) the first (1st) anniversary of the Closing Date and (b) the date that is thirty (30) days after the filing of the Company’s Annual Report on Form 10 –K with respect
to the fiscal year ending on December 31, 2013, and any claim by a party under this Agreement with respect to a breach of such representations and warranties shall be brought no later than such date; provided, however, the representations and
warranties contained in Sections 4.2, 4.3 and 4.4 shall survive until the expiration of the applicable statute of limitations. Each of the covenants in this Agreement shall survive the Closing until fully performed. 

Section 10.3 Legends.  

The Investors agree with the Company that unless sold pursuant to a registration statement that has been declared effective under the
Securities Act or in compliance with Rule 144 thereunder, each share of Common Stock purchased by the Investors pursuant to the Backstop Commitment and the Additional Purchase Commitment purchased by the Investors shall contain a legend
substantially to the following effect until the date that is one year after the later of the date of issuance or the last date on which the Company or any Affiliate of the Company was the owner thereof, unless the Company determines otherwise in
accordance with applicable Law: 
 “THIS SECURITY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED, (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. THE HOLDER OF THIS SECURITY
AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN A TRANSACTION NOT INVOLVING A PUBLIC OFFERING, (II) PURSUANT TO ANY OTHER EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, INCLUDING RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (IV) TO THE COMPANY OR ANY OF ITS SUBSIDIARIES, IN EACH OF CASES
(I) THROUGH (IV) IN ACCORDANCE 

  
 35 

 
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND IN CASE (I) OR (II), UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH
TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.” 

Section 10.4 Notices.  

All notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have
been duly given (a) on the date of delivery, if delivered personally, by facsimile or by other electronic communication, upon confirmation of receipt, (b) on the first Business Day following the date of dispatch if delivered by a
recognized next-day courier services, or (c) on the fifth Business Day following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid, to the parties to this Agreement at the following
address or to such other address either party to this Agreement shall specify by notice to the other party: 
 If to the Company: 

Trade Street Residential, Inc. 

19950 West Country Club Drive, Suite 800 

Aventura, Florida 33180 

Attention: Chief Executive Officer 

Facsimile: (786) 248-3679 

With a copy to (which shall not constitute notice): 

Morrison & Foerster LLP 

2000 Pennsylvania, NW, Suite 6000 

Washington, DC 20006-1888 

Attention: John A. Good 

Facsimile: (202) 785-7522 

If to the Investors: 

Senator Global Opportunity Fund LP, 

Senator Global Opportunity Intermediate Fund L.P. 

c/o Senator Investment Group LP 

510 Madison Ave.

New York, New York 10022 

Attention: Evan Gartenlaub, General Counsel 

With a copy to (which shall not constitute notice): 

Schulte Roth & Zabel LLP 

919 Third Avenue 

New York, New York 10022 

Attention: Eleazer Klein 

Section 10.5 Further Assurances.  

Each party hereto shall do and perform or cause to be done and performed all further acts and shall execute and deliver all other agreements,
certificates, instruments and documents as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 

  
 36 

 Section 10.6 Amendments and Waivers.  

Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is duly executed and
delivered by the Company and the Investor. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Law. 

Section 10.7 Fees and Expenses. 

The Company will reimburse the Investors for all reasonable and actual out-of-pocket expenses incurred by the Investors and their counsel in
connection with this Agreement and the transactions contemplated hereby irrespective of whether the transactions hereby are consummated; provided that the Company’s obligation to reimburse the Investors for fees and expenses pursuant to
this Section 10.7 shall be limited to an aggregate $400,000 (the “Expense Cap”) without the consent of the Company, exclusive of the Backstop Commitment Fee and Additional Purchase Commitment Fee, the Company Liquidated Damages
Amount and the Termination Fee. Notwithstanding the foregoing, the Company and the Investors agree that amounts payable by the Company pursuant to Section 7.3 and Article 9, shall be outside of the Expense Cap and shall not be taken into
account in calculating the Expense Cap. 
 Subject to Section 10.16, reimbursement of the Investor’s expenses by the Company
pursuant to this Section 10.7 shall be made at the Closing or, if this Agreement is terminated, no later than five (5) Business Days after delivery to the Company of written notice of (1) demand for payment after the termination of
this Agreement, and (2) a documented itemization setting forth in reasonable detail all such expenses. 

Section 10.8 Successors and Assigns.  

The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns. This Agreement shall not be assignable by operation of law or otherwise, provided that, the Investors shall be permitted, to assign this Agreement to any of its Affiliates under common control with the Investor’s ultimate parent
entity (an “Affiliated Purchaser”) provided that (i) such assignee shall execute an agreement for the benefit of the Company in form and substance reasonably satisfactory to the Company, pursuant to which such proposed assignee
agrees to be bound by the terms and conditions of this Agreement and (ii) that no such assignment shall relieve the Investors of its obligations hereunder. Without limiting the foregoing, none of the rights of the Investors hereunder shall be
assigned to, or enforceable by, any Person to whom an Investor may transfer capital stock of the Company (other than a transfer to the Investor’s Affiliates to the extent permitted in accordance with the terms of this Agreement). 

Section 10.9 Governing Law.  

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

Section 10.10 Jurisdiction. 

The parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby may only be brought in the United States District Court for the Southern District of New York, and each of the parties hereby consents to the jurisdiction of such courts (and of
the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by Law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action
or proceeding in any such court or 

  
 37 

 
that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party
anywhere in the world, whether within or without the jurisdiction of any such court. 
 Section 10.11
Waiver Of Jury Trial.  
 EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

Section 10.12 Entire Agreement. 

This Agreement, together with the Stockholders Agreement, constitutes the entire agreement between the parties with respect to the subject
matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties and/or their Affiliates with respect to the subject matter of this Agreement. 

Section 10.13 Effect of Headings and Table of Contents. 

The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 

Section 10.14 Severability. 

If one or more provisions of this Agreement are held to be unenforceable under applicable Law, such provision shall be deemed to be excluded
from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforced in accordance with its terms to the maximum extent permitted by Law. 

Section 10.15 Counterparts; No Third Party Beneficiaries. 

This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures were
upon the same instrument. Except as set forth in Article 9, no provision of this Agreement shall confer upon any Person other than the parties hereto any rights or remedies hereunder. 

Section 10.16 Remedies. 

(a) In the event that this Agreement is terminated (i) by the Company other than pursuant to Section 8.1(c) or 8.1(g) or (ii) by
the Investor, other than pursuant to Section 8.1(h), then the Company shall pay to Seller, on or before December 31, 2014, $2,500,000 of the Additional Purchase Commitment Fee (the “Company Liquidated Damages Amount”) along with
any amounts due pursuant to Section 10.7 in immediately available funds to a bank account designated in writing by Seller, it being understood that in no event shall the Company be required to pay the Company Liquidated Damages Amount on more
than one occasion. 
 (b) In the event that this Agreement is terminated (i) by the Investors pursuant to Section 8.1(h), (ii) by
the Company pursuant to Section 8.1(g) or (iii) by the Company pursuant to Section 8.1(f) and prior to such termination the Company received a bona fide written proposed for a Financing or an Acquisition Transaction, then the Company
shall, (A) simultaneously with such termination (in the case of a termination by the Company pursuant to Section 8.1(f) or (g)) or (B) immediately following such termination (in the case of a termination by the Investor pursuant to
Section 8.1(h)), pay the Investors the Termination Fee along with any amounts due pursuant to Section 10.7 (to the extent such amounts have not already been paid) in immediately available funds to a bank account designated in writing by
Seller, it being understood that in no event shall the Company be required to pay the Termination Fee on more than one occasion. 

  
 38 

 (c) It is hereby understood and agreed that in no event shall the Company be required to pay to
the Investors both the Termination Fee and the Company Liquidated Damages Amount and that any payment by the Company of the Termination Fee pursuant to Section 8.1(f) and Section 10.16(b) shall be made net of the Company Liquidated Damages
Amount to the extent the Company Liquidated Damages Amount has been paid to the Investors. 
 (d) Except with respect to a breach by the
Company of its obligations pursuant to Section 7.4, the right of the Investors to receive payment of the Company Liquidated Damages Amount or the Termination Fee, as applicable, shall be its sole and exclusive remedy under this Agreement for
any and all charges, judgments, losses, liabilities, damages (including consequential damages), costs, taxes, penalties, expenses, fees, fines, assessments, sanctions or awards (including (a) amounts paid in settlement, and (b) reasonable
costs of investigation and defense, reasonable legal expenses and court costs), but specifically excluding any costs incurred by or allocated to the Investors with respect to time spent by employees of the Investors or its Affiliates (collectively,
“Losses”) suffered by the Investors as a result of the failure of the Closing to occur (including as a result of a breach or failure by Company to perform its obligations hereunder or any willful breach or fraud on the part of
Company). Upon payment of such amounts, the Company shall not have any further liability or obligation as a result of the failure by Company to consummate the Closing. Upon payment of the Company Liquidated Damages Amount or the Termination Fee, as
applicable, the Company shall not have any further liability or obligation relating to or arising out of this Agreement or the transactions contemplated hereby, and no person shall have any rights or claims against the Company under this Agreement
or otherwise, whether at Law or equity, in contract, in tort or otherwise. For purposes of clarity, the Investors acknowledge and agree that they shall not be entitled to an injunction or injunctions to prevent breaches of this Agreement by the
Company or otherwise obtain any other relief at Law, equity or otherwise to obtain specific performance. 
 (e) In addition, in the event
that this Agreement is terminated by the Company as a result of a breach by the Investors of their representations, warranties, covenants or agreements hereunder resulting from the willful misconduct or gross negligence of the Investors that has had
or would reasonably be expected to have a material adverse impact on the consummation of the transactions contemplated hereby, then the Company shall be entitled to all remedies available at Law or equity arising from such breach. 

(f) The Investors agree that (A) the transactions contemplated hereby are unique and that damages for failure by the Company to
consummate the transactions contemplated hereby will be extremely difficult and impracticable to ascertain, (B) the Company Liquidated Damages Amount is a reasonable and rational estimate at this time and is an acceptable damages amount to the
Investors upon the occurrence of the events described above, and (c) the Company Liquidated Damages Amount or the Termination Fee, as applicable, is not intended as a penalty, but as full liquidated damages under this Agreement and as
compensation for the Investor’s Losses and other expenses associated with the failure of the Company to close the transactions contemplated hereby pursuant to this Agreement. The agreements contained in this Section 10.16 are an integral
part of the Agreement and the parties agree that, without these agreements, the parties would not enter into this Agreement. In addition, the parties acknowledge that in the absence of a waiver, a bond or undertaking may be required by a court and
the parties hereby waive any such requirement of such a bond or undertaking. 
 (g) The parties agree that the Company would suffer
irreparable damage in the event any of the provisions of this Agreement were not performed in accordance with the terms hereof and that the Company shall be entitled to specific performance of the terms hereof. It is accordingly agreed that the
Company shall be entitled to an injunction, specific performance and other equitable relief to prevent breaches of this Agreement by the Investors and to enforce specifically the terms and provisions of this Agreement; it being understood and agreed
that, notwithstanding the first sentence of this Section 10.16(g) or anything else in this Agreement to the contrary, the Company’s right to specific performance to require the Investors to consummate the Closing shall remain subject to
the satisfaction (or waiver by the applicable party) of the conditions to the Closing hereunder. Any requirements for the securing or posting of any bond with such remedy are hereby waived. 

 

  
 39 

 Section 10.17 Adjustment to Shares. 

If, prior to the Closing Date, the Company effects a reclassification, stock split (including a reverse stock split), stock dividend or
distribution, recapitalization, merger, issuer tender or exchange offer, or other similar transaction with respect to any shares of its capital stock, references to the numbers of such shares and the prices therefore shall be equitably adjusted to
reflect such change and, as adjusted, shall, from and after the date of such event, be subject to further adjustment in accordance herewith. 

Section 10.18 Notices and Consents. 

Any notice required to be delivered pursuant to this Agreement to any Investor may be delivered to the Adviser on behalf of such Investor and
any consent or approval by any Investor pursuant to this Agreement may be delivered by the Adviser. 
 [Remainder of page intentionally left
blank] 

  
 40 

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

			
	TRADE STREET RESIDENTIAL, INC.
		
	By:	 	 
	 Name:

Title:

 

			
	SENATOR GLOBAL OPPORTUNITY FUND LP
		
	By:	 	 
	 Name:

Title:

 

			
	SENATOR GLOBAL OPPORTUNITY INTERMEDIATE FUND L.P.
		
	By:	 	 
	 Name:
 Title:EX-10.42

 Exhibit 10.42 

PURCHASE AND SALE AGREEMENT 

WOODFIELD CREEKSTONE APARTMENTS 

LOCATED AT 
 5472 SOUTH
MIAMI BOULEVARD 
 DURHAM NC 

ARTICLE 1: PROPERTY/PURCHASE PRICE 

1.1 Certain Basic Terms. 
  

			
	 (a)    Purchaser and Notice Address:
	  	 Trade Street Operating Partnership, LP
 19950 W.
Country Club Drive, Suite 801
 Aventura, Florida 33180
 Attn:
Greg Baumann
 Telephone: (786) 248-6050
 Facsimile: (786)
248-3679
 Email: GBaumann@Trade-Street.com

		
	          With a copy to:
	  	 Bass, Berry & Sims, PLC
 100 Peabody Place,
Suite 900
 Memphis, Tennessee 38103
 Attn: T. Gaillard
Uhlhorn
 Telephone: (901) 543-5943
 Facsimile: (901)
543-5999
 E-mail: guhlhorn@bassberry.com

		
	 (b)    Seller and Notice Address:
	  	 CRP/WF Creekstone, LLC
 a Delaware limited
liability company
 c/o Woodfield Investments
 19583 Saratoga
Springs Place
 Ashburn, VA 20147
 Attn: Greg Bonifield

Telephone: 703-286-7193
 Email:
gbonifield@wfinvest.net

		
	          With a copy to:
	  	 CRP/WF Creekstone, LLC
 a Delaware limited
liability company
 c/o The Carlyle Group
 1001 Pennsylvania
Avenue, NW
 Washington, D.C. 20004-2505
 Attn: Brian Nelsen

Telephone: 202-729-5233
 Email:
brian.nelsen@carlyle.com

		
	          and
	  	 Mayer Brown LLP
 1999 K Street NW

Washington, DC 20006
 Attn: Keith J. Willner

Telephone: 202-263-3215
 Email:
kwillner@mayerbrown.com

			
	 (c)    Date of this Agreement:
	  	The latest date of execution by Seller and Purchaser, as shown on the signature page hereto.
		
	 (d)    Purchase Price:
	  	$35,800,000
		
	 (e)    Initial Deposit:
	  	$150,000
		
	 (f)     Additional Deposit:
	  	$600,000
		
	 (g)    Closing Extension Deposit:
	  	$200,000
		
	 (h)    Earnest Money:
	  	Collectively, the Initial Deposit, the Additional Deposit and the Closing Extension Deposit, together with any other deposits of earnest money made pursuant to the terms of this Agreement. The definition of “Earnest Money”
includes any interest earned thereon.
		
	 (i)     Due Diligence Period:
	  	The period ending November 16, 2012.
		
	 (j)     Closing Date:
	  	The date that is twenty (20) days after Seller receives the Final Certificate of Occupancy for the Project (as hereinafter defined); subject to adjustment as provided in Paragraph 6.1.
		
	 (k)    Final Certificate of Occupancy:
	  	The final certificate of compliance with respect to the entire Project issued by the Durham City – County Inspections Department in connection with the construction and development of the Project.
		
	 (l)     Plans and Specifications:
	  	The construction plans and specifications created in contemplation of the development of the Property which are described on Exhibit F attached hereto, as same may be changed, modified or supplemented.
		
	 (m)   Project Architect:
	  	The Housing Studio, PA
		
	 (n)    General Contractor:
	  	C.F. Evans & Co. Construction Services, LLC
		
	 (o)    Title Company and Escrow Agent:
	  	 Fidelity National Title Insurance Company
 200
Galleria Parkway SE, Suite 2060
 Atlanta, GA 30339
 Attention:
Leslie M. Flowers
 Telephone: (678) 718-1422
 Facsimile: (678)
213-1649
 E-mail: Leslie.Flowers@fntg.com

		
	 (p)    Broker:
	  	Apartment Realty Advisors

 1.2 Property. Subject to the terms of this Purchase and Sale Agreement (the
“Agreement”), Seller agrees to sell to Purchaser, and Purchaser agrees to purchase from Seller, the following property (the “Property”): 

  
 2 

 (a) The real property located in Durham, North Carolina having a property address of 5472 S.
Miami Boulevard, Durham, North Carolina, 27703 more particularly described on Exhibit A attached hereto and incorporated by reference herein (the “Land”), together with all buildings, structures, parking areas, sidewalks,
landscaping and improvements located on or to be constructed on the Land to include, without limitation, that certain apartment complex containing ten (10) buildings with a total of 256 residential units currently known as “Woodfield
Creekstone” (the “Improvements”), and all right, title and interest of Seller in and to appurtenances of the Land, including easements or rights-of-way relating thereto, and, without warranty, all right, title and interest of
Seller in and to the land lying within any street or roadway adjoining the Land or any vacated or hereafter vacated street or alley adjoining said Land. 

(b) All of Seller’s right, title and interest, if any, in and to all fixtures, furniture, equipment, appliances, machinery, signage and
other tangible personal property, if any, owned by Seller located or to be located on the Land or used in connection with the operation of the Improvements including without limitation the tangible personal property listed on Exhibit G
attached hereto and incorporated by reference herein (the “Personal Property”), but excluding any items of personal property owned by tenants, any managing agent, or others, and, if the Personal Property includes computer hardware,
any software installed therein, and subject to the revocable non-exclusive license set forth in Paragraph 1.3 with respect to items of Personal Property bearing the name “Woodfield”. 

(c) All of Seller’s interest, as landlord, in the “Leases,” being all leases, tenancy or occupancy agreements in and for
all or any portion of the Land or Improvements, all leases which may be made by Seller after the date hereof and before Closing as permitted by this Agreement, including all amendments thereto. 

(d) All of Seller’s right, title and interest, if any, in and to all of the following items, to the extent assignable and without warranty
(the “Intangible Personal Property”): (A) all licenses, approvals and permits relating to the operation of the Property, (B) the marks identifying the Property, including, without limitation, “Creekstone”,
(C) a non-exclusive right in and to the express warranties issued to Seller in connection with the construction of the Project and still in effect; provided, however, that Seller shall retain a non-exclusive right in and to all of such
warranties; (D) the Plans and Specifications and other architectural and engineering drawings for the Improvements, and the agreement between Seller and Project Architect, and (E) telephone exchange numbers, website domains, and
advertising materials used in connection with the Property; but, Intangible Personal Property shall specifically exclude any and all trademarks, service marks and trade names of Seller and Seller’s Affiliates (including, without limitation, the
name “Woodfield”), and with reservation by Seller to use such names in connection with other property owned by Seller or Seller’s Affiliates. Purchaser understands that Seller cannot make any representation, warranty or assurance that
any contract or intangible right is assignable, but Purchaser and Seller agree that the written consent of the Project Architect for the assignment of its contract shall be requested by Seller, and should Seller not be successful in producing
written consents by the end of the Due Diligence Period, Purchaser’s sole remedy shall be to cancel this Agreement and to receive a refund of the Earnest Money. 

1.3 Advertising Transition License. The name “Woodfield”, and all rights thereto, have been expressly excluded by Seller from
the Property being sold to Purchaser. Seller, however, agrees to grant to Purchaser a non-exclusive license to use the advertising materials and signage located at the Property as of the Closing Date which contain the name “Woodfield”,
effective upon the Closing and ending 90-days thereafter. Upon the expiration of such 90-day period, Purchaser shall have no right to use the name “Woodfield” and Purchaser shall have returned to Seller any then existing advertising
materials or other items containing the name “Woodfield” that relate to the Property, and removed the name “Woodfield” from any signage relating to the Property. The provisions of this Paragraph 1.3 shall expressly survive
the Closing and Seller shall have all rights in equity and law to enforce the provisions of this Paragraph 1.3. 
 1.4 Earnest
Money; Initial Deposit and Additional Deposit. The Initial Deposit, in immediately available federal funds, evidencing Purchaser’s good faith to perform Purchaser’s obligations under this Agreement, shall be deposited by Purchaser with
the Escrow Agent not later than two (2) business days after the execution of this Agreement by both Seller and Purchaser. In the event that Purchaser fails to timely deposit the Initial Deposit with the Escrow Agent, this Agreement shall be of
no force and effect. Unless Purchaser shall have terminated this Agreement pursuant to Paragraph 2.4, Purchaser shall deposit the Additional Deposit with the Escrow Agent not later than two (2) business days after the expiration of
the Due Diligence Period. At Closing, the Earnest Money shall be applied to the Purchase Price. Otherwise, the Earnest Money shall be delivered to the party entitled to receive the Earnest Money in accordance with the provisions of this Agreement.

  
 3 

 ARTICLE 2: INSPECTIONS 

2.1 Property Information. Seller has made available to Purchaser, to the extent in Seller’s possession, copies of, or access to
with the right to copy, the following (“Property Information”): 
 (a) the standard form of apartment lease used by Seller
for the Property and the right to inspect and copy the existing Leases in the possession of the property manager for the Property; 
 (b) a
current rent roll of the Property in substantially the form and content as is typically used for the Property, but at a minimum containing the following information: apartment/suite number for apartments subject to executed Leases, tenant name,
lease rent, security deposits, pet deposits and other deposits held (the “Rent Roll”); 
 (c) a list of Personal Property,

 (d) a list (a copy of which is attached hereto as Exhibit H) and copies of Service Contracts; 

(d) an ALTA/ACSM land title survey of the Property originally dated May, 9, 2011 and last revised November 28, 2011, prepared by The John
R McAdams Company, Inc. (the “Existing Survey”); 
 (e) a phase I environmental report dated February 2011 and revised
May 6, 2011, prepared by Soil & Environmental Consultants, PA; 
 (f) operating statements used by Seller in the ordinary
course of the operations of the Property (the “Operating Statements”); 
 (g) the Plans and Specifications described on
Exhibit F, for the development and construction of an approximately 256 unit multi-family residential community on the Property (the “Project”); and 

(h) any other non-confidential and non-proprietary information not described in Paragraph 2.1 as reasonably requested by Purchaser; provided,
however, that Seller shall only be required to deliver such information as it is appears in Seller’s files and Seller shall not be required to compile or produce any new report, summary or statement to satisfy same. 

Except as otherwise expressly provided herein, Seller makes no representations or warranties as to the accuracy or completeness of the
Property Information or as to any other materials or information provided or made available to Purchaser. The Property Information and all other information, other than matters of public record, furnished to, or obtained through inspection of the
Property by, Purchaser, its affiliates, lenders, employees or agents relating to the Property, will be treated by Purchaser, its affiliates, lenders, employees and agents as confidential, and will not be disclosed to anyone other than (i) on a
need-to-know basis to Purchaser’s consultants who agree to maintain the confidentiality of such information and to return such information to Seller if the Closing does not occur, and (ii) as required by law or court order; provided that
Purchaser shall provide Seller with written notice before making any such disclosure. 
 2.2 Inspections. Subject to the rights of
tenants and the provisions of Paragraph 2.3 below, during the Due Diligence Period, Purchaser shall make a complete review and inspection of the physical, legal, economic and environmental condition of the Property, including, without
limitation, any leases and contracts affecting the Property, pest control matters, soil condition, asbestos, PCB, hazardous waste, toxic substance or other environmental matters, compliance with building, health, safety, land use and zoning laws,
regulations and orders, plans and specifications, structural, life safety, HVAC and other building system and engineering characteristics, traffic patterns, Buildings 1, 2, 3, 5, 6 and 7, and other information pertaining to the Property which it
desires to review (excluding appraisals, internal valuations or other proprietary materials that may be in Seller’s possession). 

  
 4 

 2.3 Conduct of Inspections. 

(a) Inspections in General. During the Due Diligence Period, Purchaser, its agents, and employees shall have the right to enter the
Property (subject to the rights of tenants) for the purpose of making non-invasive inspections at Purchaser’s sole risk, cost and expense, as provided herein. Before any such entry, Purchaser shall provide Seller with a certificate of insurance
naming Seller as an additional insured and with an insurer and insurance limits (minimum $4 million) and coverage reasonably satisfactory to Seller. All of such entries upon the Property shall be at reasonable times, during normal business hours,
after at least 24 hours prior notice to Seller or Seller’s agent (which notice, for purposes of this sentence only, shall be given to Michael Underwood via telephone at (919) 349-4822 or email at munderwood@woodfieldinvestments.com and to
Seth Davis via telephone at (202) 729-5361 or email at seth.davis@carlyle.com, and shall provide Seller with the names, addresses and scope of work for each person and/or entity that will be conducting inspections), shall comply with all of
Seller’s reasonable requirements (including the requirements of any of Seller’s contractor’s performing work at the Property) regarding entry upon the Property, shall not interrupt or interfere with any construction, renovation,
maintenance or other work being performed at the Property, and Seller and Seller’s agent shall have the right to accompany Purchaser during any activities performed by Purchaser on the Property. Upon reasonable prior notice and request from
Purchaser (which notice and request, for purposes of this sentence only, shall be given to Michael Underwood via telephone at (919) 349-4822 or email at munderwood@woodfieldinvestments.com and to Seth Davis via telephone at (202) 729-5361
or email at seth.davis@carlyle.com, and shall provide Seller with the names, addresses and scope of work for each person and/or entity that will be conducting inspections), Seller shall notify tenants of the Property and permit Purchaser to view
completed apartments, subject to the rights of any tenants under their leases, if any, and except to the extent specifically prohibited in such tenants’ leases. Within 5 days after Seller’s request, Purchaser shall provide Seller, at
Seller’s cost, with a copy of the results of any third party tests and inspections made by or for Purchaser, excluding (i) market and economic feasibility studies and (ii) any documents, materials or information which are subject to
attorney/client, work product or similar privilege or which are subject to a confidentiality agreement (the “Purchaser’s Reports”). If any inspection or test disturbs the Property, Purchaser will restore the Property to the
same condition as existed before the inspection or test. Purchaser shall indemnify, defend and hold harmless Seller and Seller’s shareholders, directors, officers, tenants, agents, contractors and employees and the Property from and against any
and all losses, costs, damages, claims, or liabilities arising out of or in connection with any entry or inspections performed by Purchaser, its agents or representatives; provided, however, Purchaser shall have no liability to Seller under this
Paragraph 2.3 for the mere discovery of any pre-existing condition at the Property. This indemnity shall survive the Closing and any termination of this Agreement. 

(b) Environmental Inspections and Release. The inspections under Paragraph 2.2 may include a non-invasive Phase I environmental
inspection of the Property, but no Phase II environmental inspection or other invasive inspection or sampling of soil or materials, including without limitation construction materials, either as part of the Phase I inspection or any other
inspection, shall be performed without the prior written consent of Seller, which may be withheld in its sole and absolute discretion, and if consented to by Seller, the proposed scope of work and the party who will perform the work shall be subject
to Seller’s review and approval. At Seller’s request, Purchaser shall deliver to Seller copies of any Phase II or other environmental report to which Seller consents as provided above. Purchaser, for itself and any entity affiliated with
Purchaser, waives and releases Seller and Seller’s Affiliates (hereafter defined) from and against any liability or claim related to the Property arising under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980,
the Superfund Amendments and Reauthorization Act of 1986, the Resource Conservation and Recovery Act, and the Toxic Substance Control Act, all as amended, or any other cause of action based on any other state, local, or federal environmental law,
rule or regulation; provided, however, that if Purchaser is named as a responsible party in any litigation brought by a party unrelated to Purchaser and Seller is not so named, then Purchaser may interplead Seller in such action. The provisions of
this paragraph shall survive the Closing or any earlier termination of this Agreement. “Seller’s Affiliates” means (a) any entity that directly or indirectly controls, is controlled by or is under common control with the
Seller, or (b) any entity at least a majority of whose economic interest is owned by Seller; and the term “control” means the power to direct the management of such entity through voting rights, ownership or contractual obligations.

 (c) Contact with Tenants and Governmental Authorities. Except as provided below and without Seller’s prior written consent
which shall not be unreasonably withheld, Purchaser shall not contact any tenant or any current non-tenant lease applicant or any representative of either of them or any governmental authority having jurisdiction over the Property. At
Purchaser’s reasonable request (which request shall identify the approximate number of tenants which Purchaser desires to interview), Seller and Purchaser shall schedule tenant interviews, at 

  
 5 

 
which a representative of Seller may be present. Seller acknowledges that Purchaser intends to engage PZR (or other zoning advisory firm reasonably approved by Seller) to provide a zoning report
with respect to the Property and that in order for PZR (or other approved firm) to provide such report PZR (or other approved firm) may need to contact the Durham Planning Department. In view of that, Seller hereby consents to PZR (or other approved
firm) contacting the Durham Planning Department for the sole purpose of obtaining such information as is reasonably necessary for PZR (or other approved firm) to provide a customary zoning report (and, if not PZR, such report as may be reasonably
approved by Seller) to Purchaser regarding the Property. 
 2.4 Termination During Due Diligence Period. If Purchaser determines, in
its sole discretion, before the expiration of the Due Diligence Period that the Property is unacceptable for Purchaser’s purposes for any reason or for no reason, Purchaser shall have the right to terminate this Agreement by giving to Seller
notice of termination on or before the expiration date of the Due Diligence Period. In the event of such termination, Purchaser shall promptly return the Property Information to Seller, upon Seller’s request. Provided Purchaser is not in
default hereunder, Escrow Agent shall promptly refund the Initial Deposit to Purchaser, and neither party shall have any further rights or liabilities hereunder except for those provisions which survive the termination of this Agreement. In the
event of such termination, Purchaser shall promptly return to Seller all originals and copies in Purchaser’s (or its agents’ or representatives’) possession of all Property Information, and, at Seller’s request, deliver to Seller
the Purchaser’s Reports. Purchaser’s failure to terminate this Agreement on or prior to the expiration of the Due Diligence Period shall be deemed the complete and irrevocable waiver of the condition set forth in this Paragraph 2.4,
and Purchaser shall not thereafter be entitled to terminate this Agreement based upon this Paragraph 2.4. 
 2.5 Purchaser’s
Reliance on its Investigations. To the maximum extent permitted by applicable law and except for Seller’s representations and warranties in Paragraph 8.1 and the warranty of title in the deed delivered at the Closing
(“Seller’s Warranties”), this sale is made and will be made without representation, covenant, or warranty of any kind (whether express, implied, or, to the maximum extent permitted by applicable law, statutory) by Seller. As a
material part of the consideration for this Agreement, Purchaser agrees to accept the Property on an “As is” and “Where is” basis, with all faults and any and all latent and patent defects, and without any representation or
warranty, all of which Seller hereby disclaims, except for Seller’s Warranties. Except for Seller’s Warranties, no warranty or representation is made by Seller as to (a) fitness for any particular purpose, (b) merchantability,
(c) design, (d) quality, (e) condition, (f) operation or income, (g) compliance with drawings or specifications, (h) absence of defects, (i) absence of hazardous or toxic substances, (j) absence of faults,
(k) flooding, or (l) compliance with laws and regulations including, without limitation, those relating to health, safety, and the environment. Purchaser acknowledges that Purchaser has entered into this Agreement with the intention of
making and relying upon its own investigation of the physical, environmental, economic use, compliance, and legal condition of the Property and that Purchaser is not now relying, and will not later rely, upon any disclosures, representations or
warranties (whether express or implied) made by Seller or anyone acting or claiming to act, by, through or under or on Seller’s behalf concerning the Property, except for Seller’s Warranties. 

Consistent with the foregoing and subject solely to the Seller’s Warranties, effective as of the Closing Date for the Property,
Purchaser, for itself and its agents, affiliates, successors and assigns, hereby releases and forever discharges, waives and exonerates Seller, Seller’s Affiliates, and the agents, affiliates, members, partners, officers, subsidiaries,
successors and assigns of each of them (collectively the “Releasees”) from any and all liabilities, obligations, rights, claims, causes of action and demands at law or in equity, whether known or unknown at the time of this
Agreement, which Purchaser has or may have in the future, arising out of the physical, environmental, economic or legal condition of the Property, including, without limitation, all claims in tort or contract, all claims under a warranty of any kind
(whether express, implied, or, to the maximum extent permitted by applicable law, statutory) and all claims for indemnification or contribution arising under the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C.
Section 9601, et seq.) or all similar federal, state or local statute, rule or regulation. Purchaser, upon Closing, shall be deemed to have waived, exonerated, relinquished and released Seller and all other Releasees from and against any and
all matters affecting the Property, other than Seller’s Warranties. 
 The provisions of this Paragraph 2.5 shall survive
indefinitely any closing or termination of this Agreement and shall not be merged into the closing documents. 

  
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 ARTICLE 3: TITLE AND SURVEY REVIEW 

3.1 Title Review. During the Due Diligence Period, Purchaser shall review Seller’s existing title insurance policy and the
Existing Survey. Purchaser may, at its expense, secure during the Due Diligence Period any title commitment or report from the Title Company (“Title Report”) and/or survey update desired by Purchaser with respect to the Property
(“Survey Update”). In addition, Seller shall provide Purchaser with a copy of the final “as-built” ALTA/ACSM survey of the Property prepared for Seller by The John R McAdams Company, Inc. Furthermore, Purchaser shall have
the right to request that the Title Company provide at Purchaser’s sole cost and expense any reinsurance or endorsements Purchaser shall request with respect to such Title Report, provided that the issuance of such reinsurance or endorsements
shall not be a condition to or delay the Closing. 
 3.2 Title and Survey Objections. 

(a) Purchaser may advise Seller in writing and in reasonable detail, not later than November 13, 2012, what exceptions to the Title Report
other than Permitted Exceptions, if any, are not acceptable to Purchaser (the “Title Objections”). Purchaser shall not, however, unreasonably express disapproval of any exceptions and prior to notifying Seller of any Title
Objections shall endeavor in good faith to cause Title Company to modify and update the Title Report to reflect its requested corrections and revisions. Seller shall have five (5) business days after receipt of Purchaser’s Title Objections
to give Purchaser notice that (a) Seller will remove any Title Objections from title or afford the Title Company necessary information or certifications to permit it to insure over such exceptions or (b) Seller elects not to cause such
exceptions to be removed or insured over. Seller’s failure to provide notice to Purchaser as to any Title Objection shall be deemed an election by Seller not to remove the Title Objection. If Seller so notifies or is deemed to have notified
Purchaser that Seller will not remove or insure over any or all of the Title Objections, Purchaser shall have two (2) business days to determine whether (i) to waive such Title Objections which Seller has elected not to remove or insure
over and proceed with the purchase and take the Property subject to such exceptions or (ii) to terminate this Agreement in which event, if Purchaser is not in default hereunder, Escrow Agent shall promptly refund the Initial Deposit to
Purchaser; provided, however, that should Seller notify Purchaser on or before November 15, 2012 that Seller will not remove or insure over any or all of the Title Objections, then Purchaser shall have until the expiration of the Due Diligence
Period to make its determination under the preceding clauses (i) or (ii). Purchaser’s failure, prior to the end of the applicable period, to give Seller notice to terminate this Agreement shall be deemed to be an election by Purchaser
under clause (i) of the preceding sentence. 
 (b) Purchaser shall advise Seller in writing and in reasonable detail, not later than the
earlier of five (5) days after receipt of the Survey Update and December 12, 2012, what matters on the Survey Update other than Permitted Exceptions, if any, are not acceptable to Purchaser (the “Survey Objections”).
Purchaser shall not, however, unreasonably express disapproval of any such matters and prior to notifying Seller of any Survey Objections shall endeavor in good faith to cause Title Company to modify and update the Title Report to reflect its
requested corrections and revisions. Seller shall have five (5) business days after receipt of Purchaser’s Survey Objections to give Purchaser notice that (a) Seller will remove any Survey Objections from title or afford the Title
Company necessary information or certifications to permit it to insure over such exceptions or (b) Seller elects not to cause such exceptions to be removed or insured over. Seller’s failure to provide notice to Purchaser as to any Survey
Objection shall be deemed an election by Seller not to remove the Survey Objection. If Seller so notifies or is deemed to have notified Purchaser that Seller will not remove or insure over any or all of the Survey Objections, Purchaser shall have
two (2) business days after Seller has notified, or has been deemed to have notified, Purchaser that Seller will not remove or insure over any or all of the Survey Objections to determine whether (i) to waive such Survey Objections which
Seller has elected not to remove or insure over and proceed with the purchase and take the Property subject to such exceptions or (ii) to terminate this Agreement in which event, if Purchaser is not in default hereunder, Escrow Agent shall
promptly refund the Earnest Money to Purchaser. Purchaser’s failure, prior to the end of such two (2) business day period, to give Seller notice to terminate this Agreement shall be deemed to be an election by Purchaser under clause
(i) of the preceding sentence. 
 (c) If the Title Company issues any update to the Title Report after the expiration of the Due
Diligence Period to add or modify exceptions in a manner adverse to Purchaser, or to modify the conditions to obtaining any endorsement requested by Purchaser (provided the satisfaction of such condition is not within Purchaser’s control),
Purchaser shall promptly notify Seller of any objections to such revisions other than Permitted Exceptions, but in no event later than the earlier of three (3) business days after Purchaser’s receipt of said update, in

  
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which event the same procedures for response, termination and waiver set forth in Paragraphs 3.2(a) and (b) above, as applicable, shall apply to such new objections and, if Purchaser
appropriately notifies Seller of any such objection within three (3) business days of the scheduled Closing, the scheduled Closing Date shall be extended two (2) business days in order to accommodate such procedure. 

3.3 Permitted Exceptions. “Permitted Exceptions” shall include and refer to: all matters set forth in the Title Report
or any update thereto or to the Existing Survey or any update thereto that are approved or deemed approved by Purchaser pursuant to the terms of this Agreement; all matters shown on a Survey Update or update thereto (or derivative exceptions shown
in the Title Report or any update thereto) other than (i) a material violation of zoning or building law, ordinance, map, resolution or regulation of a governmental authority having jurisdiction over the Property which violation materially and
adversely affects the Property and the use, improvement or enjoyment thereof, or (ii) an unpermitted encroachment of an Improvement over a permanent easement, setback, buffer or transitional use area or upon adjacent property, or a material
violation by Seller of that certain Declaration of Rights, Restrictions and Easements recorded in Book 2647 Page 741 of the registry (as amended by that certain Amendment recorded as instrument number 2011015016 of the registry) or Stormwater
Facility Agreement recorded in Book 6878 Page 708 of the registry, that is materially adverse to the Project, and, in either case of (i) or (ii), for which affirmative coverage is not obtainable from the Title Company for a reasonable cost
(provided, however, that if such coverage is obtainable at a reasonable cost or at no cost to Seller from a national title company other than the Title Company, such matter shall be deemed to be a Permitted Exception); all zoning and building laws,
ordinances, maps, resolutions, and regulations of all governmental authorities having jurisdiction which affect the Property and the use, improvement or enjoyment thereof; the Leases; matters affecting title created by or with the consent of
Purchaser; matters deemed to be permitted exceptions hereunder, including, but not limited to, the Condominium Conversion Agreement and any exception the Title Company may take in respect of the Punch List Work, if any, to be completed after closing
in accordance with Paragraph 4.6; liens to secure taxes and assessments not yet due and payable; and, other matters which do not materially and adversely affect the use, occupancy, development or value of the Property. Notwithstanding the
foregoing, Seller shall remove at Seller’s sole cost and expense on or prior to the Closing Date and there shall not be treated as Permitted Exceptions the lien of the deed of trust given by Seller for the benefit U.S. Bank, National
Association, dated as of November 29, 2011 and recorded in the office of the Register of Deeds of Durham County on November 30, 2011 as instrument number 2011036476. 

3.4 Affidavits. Seller shall have no obligation to execute any affidavits or indemnifications in connection with the issuance of
Purchaser’s title insurance policy, excepting only an owner's affidavit, or other customary affidavit(s) reasonably required by the Title Company, in a form which has been agreed to between Seller and the Title Company as to authority, the
rights of tenants in occupancy, the status of mechanics’ liens and, if applicable, the “gap”. 
 ARTICLE 4: OPERATIONS AND
RISK OF LOSS 
 4.1 Ongoing Operations. During the pendency of this Agreement, Seller shall carry on its business and activities
relating to the Property, including construction, marketing and leasing of the Property, substantially in the same manner as it did before the Date of this Agreement. 

4.2 Performance under Leases and Service Contracts. During the pendency of this Agreement, Seller will perform in all material respects
its obligations under the Leases and Service Contracts (as defined herein). 
 4.3 New Contracts and Leases. During the pendency of
this Agreement, Seller will not enter into any contract (excluding leases) relating to the operation of the Property that will be an obligation affecting the Property subsequent to the Closing, except contracts entered into in the ordinary course of
business that are terminable without cause on 30-days’ notice and without the payment by Purchaser of any termination penalty or fee. Furthermore, after the expiration of the Due Diligence Period, Seller will not enter into any lease that will
be an obligation affecting the Property subsequent to the Closing, except residential Leases and amendments and renewals in each case in accordance with Seller’s past practices, without the prior consent of the Purchaser, which shall not be
unreasonably withheld or delayed. 

  
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 4.4 Termination of Service Contracts. During the Due Diligence Period, Purchaser shall
notify Seller which Service Contracts Purchaser wishes to assume at Closing. Notwithstanding the foregoing, Purchaser shall assume all Service Contracts that are not terminable on 30 days or less notice or that require the payment of a termination
charge (unless Purchaser agrees to pay such termination charge). Purchaser shall pay any transfer or assignment charges due in connection with its assumption of any Service Contracts. Notice of termination for all Service Contracts not assumed by
Purchaser shall be given by Seller not later than the Closing Date and any charges due thereunder after the Closing Date and through the date of actual termination shall be the responsibility of Purchaser. 

4.5 Damage or Condemnation. Risk of loss resulting from any fire, flood or any other casualty before the Closing, shall remain with
Seller. If before the Closing, the Property shall be materially damaged, or if the Property or any material portion thereof shall become the subject of any proceedings, judicial, administrative or otherwise, with respect to the taking by eminent
domain or condemnation, then Purchaser may terminate this Agreement by written notice to Seller given within 10 days after Purchaser learns of the damage or taking, in which event the Earnest Money shall be returned to Purchaser. If the Closing Date
is within the aforesaid 10-day period, then Closing shall be extended to the next business day following the end of said 10-day period. If no such election is made, and in any event if the damage is not material, this Agreement shall remain in full
force and effect and the purchase contemplated herein, less any interest taken by eminent domain or condemnation, shall be effected with no further adjustment, and upon the Closing of this purchase, Seller shall assign, transfer and set over to
Purchaser all of the right, title and interest of Seller in and to any awards that have been or that may thereafter be made for such taking, and Seller shall assign, transfer and set over to Purchaser any insurance proceeds that may thereafter be
made for such damage or destruction and Seller shall, at its election, either pay, or credit to Purchaser at Closing, the amount of any deductible or coinsured amount under said insurance policies. For the purposes of this paragraph, the phrases
“material damage” and “materially damaged” means damage (a) reasonably exceeding $2,500,000 to repair, (b) materially and adversely changing the orientation of any residential buildings comprising the
Project, (c) adversely affecting the availability of parking for the Project such that the Project can not be made to comply with applicable law in a manner generally consistent with the existing aesthetic design of the Property,
(d) eliminating legal access to the Project permanently or (e) causing any building comprising the Property to be considered a non-conforming use that prohibits the reconstruction of such building. 

4.6 Construction of Improvements. 

(a) Seller acknowledges that it is currently completing construction of the Improvements and, with respect to each of Buildings 4, 8 and 10,
Seller agrees to diligently carry on construction of such Buildings during the contract period with the intent to complete them in substantially the same fit and finish as Buildings 1, 2, 3, 5, 6, 7 and 9, subject to completion of the Punch List
Items as hereinafter provided. Purchaser acknowledges that Seller is currently completing construction of the Improvements and, that as of Closing, certain punch list items may remain to be completed (“Punch List Work”). For each of
Buildings 4, 8 and 10 on the respective Inspection Date of such building, Seller and, if present, Purchaser shall jointly inspect such building with the General Contractor and reasonably create a punch list of items that remain to be completed for
such building and the estimated cost of completing such items, which punch list will be final for such building subject to the reasonable approval of Seller’s general contractor (with respect to each building, “Building Punch List
Items” and, collectively for all buildings, the “Punch List Items”). As used herein, the term “Inspection Date” means, with respect to each of Buildings 4, 8 and 10, the date on which Seller and General Contractor
have agreed to perform the owner’s walk-through of such building, which typically occurs within five (5) business days prior to Seller obtaining the temporary certificate of occupancy for such building. Seller agrees to promptly notify
Purchaser of the Inspection Dates and any changes thereto. If, after having received notice of an Inspection Date, Purchaser does not attend the Inspection on the Inspection Date or Purchaser notifies Seller that Purchaser declines to attend an
Inspection on the Inspection Date, Purchaser shall be bound by the list of Building Punch List Items as prepared by Seller. 
 (b) Seller
shall cause all Punch List Items to be completed with diligence. If the Punch List Items are not completed on or before the Closing Date (as reasonably determined by Seller and Purchaser), then the amount required to complete the outstanding Punch
List Items (as reasonably determined by Seller and Purchaser) shall be withheld from Seller’s proceeds at Closing and placed in escrow with the Escrow Agent as a hold back (the “Punch List Holdback”), and disbursed by Escrow
Agent to Seller in connection with its completion of the Punch List Work in accordance with the terms of the Punchlist Holdback Agreement attached hereto as Schedule 4.6(b) (the “Punch List Holdback Agreement”). 

  
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 (c) The provisions of this Paragraph 4.6 shall survive the termination of this Agreement.

 4.7 Rent Ready. Seller and Purchaser shall jointly inspect all vacant apartment units at the Property five (5) days prior to
the Closing and determine which of such vacant units are not Rent-Ready. In full satisfaction of Seller’s obligations hereunder, Seller shall credit against the Purchase Price at Closing an amount equal to $500.00 for each Qualified Vacant
Apartment Unit at the Property which has not been made Rent Ready. “Rent Ready” shall mean the units have been equipped with appliances customarily installed, customary maintenance shall be performed as necessary, all walls shall be
painted as necessary and all carpet shall be professionally steam cleaned as necessary or replaced as necessary. “Qualified Vacant Apartment Unit” shall mean a vacant apartment unit at the Property for which Seller is not required to
complete Punch List Work after the Closing. 
 ARTICLE 5: CONDITIONS PRECEDENT 

5.1 Purchaser’s Conditions. Notwithstanding anything in this Agreement to the contrary, Purchaser’s obligation to purchase
the Property shall be subject to and contingent upon the satisfaction or waiver of the following conditions precedent: 
 (a)
Inspection. Purchaser’s inspection and approval, in Purchaser’s sole and absolute discretion, within the Due Diligence Period, of all matters relating to the Property, pursuant to Paragraph 2.2 above. 

(b) Performance. Seller’s performance or tender of performance of in all material respects of its obligations under this Agreement
and the material truth and accuracy of Seller’s express representations and warranties in this Agreement as of the Closing Date, subject to Paragraph 9.3(b) below. 

(c) Casualty or Condemnation. The Purchaser has not elected to terminate this Agreement pursuant to Paragraph 4.5. 

(d) Final Certificate of Occupancy. The Seller has delivered to Purchaser written notice that Seller has obtained the Final Certificate
of Occupancy for the Project from the Durham City – County Inspections Department. 
 (e) Title. As of the Closing Date, Seller
shall own legal title to the Property subject only to the Permitted Exceptions (and claims which have been insured over by the Title Company or bonded by Seller). 

5.2 Seller Conditions. Notwithstanding anything in this Agreement to the contrary, Seller’s obligation to sell the Property shall
be subject to and contingent upon the satisfaction or waiver of the following conditions precedent: 
 (a) Inspection. The
satisfaction of the condition set forth in Paragraph 5.1(a) above. 
 (b) Performance. Purchaser’s performance or tender
of performance in all material respects of its obligations under this Agreement and the material truth and accuracy of Purchaser’s express representations and warranties in this Agreement as of the Closing Date. 

(c) Casualty or Condemnation. The satisfaction of the condition set forth in Paragraph 5.1(c) above. 

(d) Punch List Work. The aggregate amount of the Punch List Holdback shall be no greater than $400,000. 

  
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 5.3 Failure or Waiver of Conditions Precedent. In the event any of the conditions set
forth in Paragraphs 5.1 or 5.2 are not fulfilled or waived, the party benefitted by such conditions may, by written notice to the other party, terminate this Agreement, whereupon all rights and obligations hereunder of each party shall
be at an end except those that expressly survive any termination. Either party may, at its election, at any time or times on or before the date specified for the satisfaction of the condition, waive in writing the benefit of any of the conditions
set forth in Paragraphs 5.1 and 5.2 above. Notwithstanding the foregoing, Purchaser’s failure to terminate this Agreement prior to the expiration of the Due Diligence Period shall be deemed the complete and irrevocable
satisfaction of the condition set forth in Paragraph 5.1(a) above, and Purchaser shall not thereafter be entitled to terminate this Agreement based upon the alleged failure of such condition. In the event this Agreement is terminated as a
result of the failure of any condition set forth in Paragraph 5.1, Purchaser shall be entitled to a refund of the Earnest Money. In any event, Purchaser’s consent to the close of escrow pursuant to this Agreement shall waive any
remaining unfulfilled conditions, and any liability on the part of Seller for breaches of representations and warranties of which Purchaser had knowledge as of the Closing. 

ARTICLE 6: CLOSING 
 6.1
Closing. The consummation of the transaction contemplated herein (“Closing”) shall occur on the Closing Date at the offices of the Escrow Agent or pursuant to escrow arrangements reasonably satisfactory to Purchaser and
Seller; provided, however, that in no event shall the Closing occur later than April 1, 2013 (the “Outside Closing Date”). Notwithstanding the foregoing, Purchaser shall have the one-time right to extend the Closing Date for up
to twenty (20) days by depositing with the Escrow Agent the Closing Extension Deposit at least five (5) business days prior to the then scheduled Closing Date (and the Outside Closing Date shall be extended accordingly if necessary). 

Upon completion of the deliveries pursuant to Paragraphs 6.2 and 6.3 below, satisfaction of the other conditions to Closing
herein set forth and performance by each party of its obligations required to be performed prior to or at the Closing, the parties shall direct the Title Company to make such deliveries and disbursements according to the terms of this Agreement.

 6.2 Seller’s Deliveries in Escrow. At least one (1) day prior to the Closing Date, provided Purchaser shall not be in
material default of this Agreement, Seller shall deliver in escrow to the Escrow Agent the following: 
 (a) Deed. A special warranty
deed (warranting title for acts by, through or under Seller) (the “Deed”) in the form of Exhibit B attached hereto, executed and acknowledged by Seller, conveying to Purchaser Seller’s title to the Property, subject only
to the Permitted Exceptions. 
 (b) Assignment of Leases and Contracts and Bill of Sale. An Assignment of Leases and Contracts
and Bill of Sale in the form of Exhibit C attached hereto, executed by Seller;  
 (c) Condominium Conversion Agreement.
A Condominium Conversion Agreement, executed by Seller; 
 (d) State Law Disclosures. Such disclosures and reports as are required
from a Seller by applicable state and local law in connection with the conveyance of real property; 
 (e) Assignment of Construction
Contract. An Assignment of Construction Contract substantially in the form attached hereto as Schedule 6.2(e). executed by General Contractor; 

(f) FIRPTA. A Foreign Investment in Real Property Tax Act affidavit executed by Seller; 

(g) Punch List Holdback Agreement. The Punch List Holdback Agreement executed by Seller, if necessary; 

(h) Owner’s Affidavit(s). The affidavit or affidavits described in Paragraph 3.4 hereof executed and acknowledged by Seller;

  
 11 

 (i) Bring Down Certificate. A bring down certificate reaffirming and updating to the
Closing Date all of the representations and warranties of Seller contained in Article 8, executed by Seller; 
 (j) Rent Roll. An
updated, certified rent roll dated no earlier than five (5) business days prior to the Closing; 
 (k) Authority. Evidence of
existence, organization and authority of Seller and the authority of the person(s) executing documents on behalf of Seller reasonably satisfactory to Purchaser and Title Company; and 

(l) Additional Documents. Any additional documents that Escrow Agent or the Title Company may reasonably require for the proper
consummation of the transaction contemplated by this Agreement. 
 6.3 Purchaser’s Deliveries in Escrow. At least one
(1) day prior to the Closing Date, provided Seller shall not be in material default of this Agreement, Purchaser shall deliver in escrow to the Escrow Agent the following: 

(a) Purchase Price. The Purchase Price, less the Earnest Money that is applied to the Purchase Price, plus or minus applicable
prorations, deposited by Purchaser with the Escrow Agent in immediate, same-day federal funds wired for credit into the Escrow Agent’s escrow account. The initial closing step within the escrow shall be
for the Escrow Agent to deliver the Purchase Price to Seller; 
 (b) Assignment of Leases and Contracts and Bill of Sale. An
Assignment of Leases and Contracts and Bill of Sale in form of Exhibit C attached hereto, executed by Purchaser; 
 (c) Condominium
Conversion Agreement. A Condominium Conversion Agreement, executed by Purchaser; 
 (d) State Law Disclosures. Such disclosures
and reports as are required by applicable state and local law in connection with the conveyance of real property; 
 (e) Assignment of
Construction Contract. An Assignment of Construction Contract substantially in the form attached hereto as Schedule 6.2(e). executed by Purchaser; 

(f) Punch List Holdback Agreement. The Punch List Holdback Agreement executed by Purchaser, if necessary; and 

(g) Authority. Evidence of existence, organization and authority of Purchaser and the authority of the person(s) executing documents on
behalf of Purchaser reasonably satisfactory to Seller and Title Company; and 
 (h) Additional Documents. Any additional documents
that Escrow Agent or the Title Company may reasonably require for the proper consummation of the transaction contemplated by this Agreement. 

6.4 Closing Statements/Escrow Fees. At the Closing, Seller and Purchaser shall deposit with the Escrow Agent executed closing
statements consistent with this Agreement in the form required by the Escrow Agent. 
 6.5 Post-Closing Deliveries. Promptly after
the Closing, Seller shall deliver to the Property or the offices of Purchaser’s property manager: the original Leases; originals of all contracts (or copies if no originals are available) and receipts for deposits; all keys, if any, used in the
operation of the Property; and, if in Seller’s possession, a copy of any “as-built” plans and specifications of the Improvements. 

6.6 Notice to Tenants. Purchaser shall deliver to each tenant immediately after the Closing a notice regarding the sale in
substantially the form of Exhibit D attached hereto, signed by Purchaser and Seller, or such other form as may be required by applicable state law. 

  
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 6.7 Closing Costs. 

Costs. Each party shall pay its portion of the following costs as indicated below: 

(a) Survey Update – Purchaser; provided, however, that Seller agrees to provide Purchaser at Closing a credit against the Purchase Price
equal to the lesser of one-half of the actual cost of the Survey Update and $11,300. 
 (b) Owner ‘s Title Policy, including without
limitation, title search fees, extended coverage and endorsements – Purchaser. 
 (c) Deed transfer tax imposed on the sale contemplated
herein – Seller 
 (d) Recording charges: 
  

	 	(i)	Instruments to remove encumbrances that Seller is obligated to remove – Seller. 

  

	 	(ii)	Deed – Purchaser. 

 (e) Appraisals, engineering studies, termite inspections, environmental
inspections and other inspections and tests desired by Purchaser – Purchaser. 
 (f) Other – The Escrow Agent’s escrow fee
shall be evenly divided between the parties. 
 Each party shall pay its own attorneys’ fees. Purchaser shall pay any escrow
cancellation fee or other fees due upon a termination of this Agreement. All other costs shall be borne according to local custom. 
 6.8
Close of Escrow. Upon satisfaction or completion of the foregoing conditions and deliveries, the parties shall direct the Escrow Agent to immediately make disbursements according to the closing statements executed by Seller and Purchaser, and
thereafter to record and deliver the documents described above to the appropriate parties. 
 ARTICLE 7: PRORATIONS 

Prorations and adjustments with respect to each Property shall be made as of the Closing Date with respect to such Property as set forth in
this Article 7. 
 7.1 Prorations. If the Purchase Price is received by Seller’s depository bank by 1:00 p.m. on the
Closing Date, the day of Closing shall belong to Purchaser and all prorations hereinafter provided to be made as of the Closing shall each be made as of the end of the day before the Closing Date. If the Purchase Price is not timely so received by
Seller’s depository bank, but is received thereafter on the Closing Date, then the day of Closing shall belong to Seller and such proration shall be made as of the end of the Closing Date. In each such proration set forth below, the portion
thereof applicable to periods beginning as of Closing shall be credited to Purchaser or charged to Purchaser as applicable and the portion thereof applicable to periods ending as of Closing shall be credited to Seller or charged to Seller as
applicable. 
 (a) Collected Rent. All collected rent and other collected income (and any applicable state or local tax on rent) under
Leases in effect on the Closing Date shall be prorated as of the Closing. Uncollected rent and other income shall not be prorated. Purchaser shall apply rent and other income from tenants that are collected after the Closing first to the obligations
then owing to Purchaser for its period of ownership and to costs of collection, remitting the balance, if any, to Seller. Seller expressly agrees that if Seller receives any amounts after the Closing Date which are attributable, in whole or in part,
to any period after the Closing Date, Seller shall remit to Purchaser that portion of the monies so received by Seller to which Purchaser is entitled within thirty (30) days after receipt thereof. Any prepaid rents for the period following the
Closing Date shall, at Seller’s election, be paid over by 

  
 13 

 
Seller to Purchaser at Closing or credited against the Purchase Price at Closing. Purchaser will make reasonable efforts, without suit, to collect any rents applicable to the period before
Closing. Seller may pursue collection as to any rent not collected by Purchaser prior to the Closing Date, provided that Seller shall have no right to commence or pursue any legal proceedings against any tenants seeking eviction of such tenant or
take any action to terminate any Lease or any tenant’s occupancy under any Lease in connection therewith. 
 (b) Taxes and
Assessments. General real estate taxes and assessments imposed by governmental authority and any assessments imposed by private covenant constituting a lien or charge on the Property for the then current calendar year or other current tax period
(collectively, “Taxes”) not yet due and payable shall be prorated at Closing. Taxes for all years prior to the year in which Closing occurs shall be paid solely by Seller at or prior to Closing. If the Closing occurs prior to the
receipt by Seller of the tax bill for the calendar year or other applicable tax period in which the Closing occurs, Purchaser and Seller shall prorate Taxes for such calendar year or other applicable tax period based upon the most recent
ascertainable assessed value of the Property and most recently available tax rates. If the Property has not been assessed on an “as completed” basis, but will be assessed on an “as completed” basis and will also be due and
payable in the year in which the Closing occurs, the parties shall complete the proration of Taxes at Closing as provided in the immediately preceding sentence, and Seller agrees to escrow at Closing a portion of Seller’s net proceeds from the
sale of the Property in an amount equal to its portion of such Taxes as reasonably determined by the parties’ in good faith, in order to secure payment by Seller of its portion of such Taxes. Any refund or rebate of Taxes resulting from a tax
protest, challenge or appeal (an “Appeal”) for a tax year ending prior to the Closing Date shall belong to Seller, whether received before or after Closing, and Seller shall have the sole authority to prosecute such Appeals. Any
refund or rebate of Taxes, less costs incurred in connection therewith, resulting from an Appeal for the tax year in which the Closing Date occurs shall be prorated between the parties as of the Closing Date, whether received before or after
Closing, and Seller and Purchaser shall mutually cooperate in the prosecution of any such Appeal prior to the Closing Date and after the Closing Date Seller and Purchaser shall mutually cooperate in the prosecution of any such Appeal. All real
estate taxes imposed because of a change of use of the Property prior to Closing shall be the responsibility and obligation of Seller. 
 (c)
Utilities. Utilities, including water, sewer, electric, and gas, based upon the last reading of meters prior to the Closing shall be prorated. Seller and Purchaser shall endeavor to obtain meter readings on the day before the Closing Date,
and if such readings are obtained, there shall be no proration of such items. Seller shall pay at Closing the bills therefor for the period to the day preceding the Closing, and Purchaser shall pay the bills therefor for the period subsequent
thereto. If the utility company will not issue separate bills, Purchaser will receive a credit against the Purchase Price for Seller’s portion and will pay the entire bill prior to delinquency after Closing. If Seller has paid any utilities no
more than 30 days in advance in the ordinary course of business, then Purchaser shall be charged its portion of such payment at Closing. 

(d) Fees and Charges under Service Contracts, Licenses and Permits. Fees and charges under such of the Service Contracts, licenses and
permits as are being assigned to and assumed by Purchaser at the Closing, on the basis of the periods to which such fees and charges under said Service Contracts, licenses and permits relate, shall be prorated. 

(e) Locator Fees. Locator fees on residential Leases which are the obligation of the landlord shall be allocated between the parties as
provided hereinbelow according to whether such obligations arise in connection with (i) Leases executed prior to the Date of this Agreement, other than with respect to (a) renewals or expansions of or under such Leases occurring after the
Date of this Agreement, and (b) Leases executed prior to the Date of this Agreement but with respect to which the tenant takes occupancy on or after the Closing Date (collectively, “Existing LC Obligations”), or
(ii) Leases entered into after the Date of this Agreement, any renewals or expansions of or under Leases executed prior to the Date of this Agreement occurring after the Date of this Agreement, and Leases executed prior to the Date of this
Agreement but the tenant under which takes occupancy on or after the Closing Date (“New LC Obligations”). 

(i) Existing LC Obligations. If, by Closing, Seller has not paid in full Existing LC Obligations, then Purchaser shall
receive a credit for such remaining costs, and Purchaser shall be responsible for paying such Existing LC Obligations. 

  
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 (ii) New LC Obligations. At Closing, Purchaser shall reimburse Seller for
the cost of New LC Obligations paid by Seller, and Purchaser shall assume all New LC Obligations. 
 Purchaser will assume at Closing the
applicable commission agreements providing for the payment of locator fees for which Purchaser is responsible or liable pursuant to this Paragraph 7.1. 

(f) Final Adjustment After Closing. If final prorations cannot be made at Closing for any item being prorated under this Paragraph
7.1, then Purchaser and Seller agree to allocate such items on a fair and equitable basis as soon as invoices or bills are available and applicable reconciliation with tenants have been completed, with final adjustment to be made as soon as
reasonably possible after the Closing but no later than 60 days after the Closing, to the effect that income and expenses are received and paid by the parties on an accrual basis with respect to their period of ownership. Payments in connection with
the final adjustment shall be due within 10 days of written notice. Seller and Purchaser shall have reasonable access to, and the right to inspect and audit, the other’s books to confirm the final prorations. 

7.2 Deposits. All tenant security deposits in Seller’s possession (including, without limitation, pet deposits) and any prepaid
rent for the period after Closing, as reflected on the final Rent Roll delivered to Purchaser, (and interest thereon if required by law or contract to be earned thereon) and not theretofore applied to tenant obligations under the Leases
(“Deposits”) shall be transferred or credited to Purchaser at Closing or placed in escrow if required by law. As of the Closing, Purchaser shall assume Seller’s obligations related to the Deposits. Purchaser will indemnify,
defend, and hold Seller harmless from and against all demands and claims made by tenants arising out of the transfer or disposition of any Deposits transferred to Purchaser at Closing and will reimburse Seller for all attorneys’ fees incurred
or that may be incurred as a result of any such claims or demands as well as for all loss, expenses, verdicts, judgments, settlements, interest, costs and other expenses incurred or that may be incurred by Seller as a result of any such claims or
demands by such tenants. 
 7.3 Utility Deposits. Purchaser shall be responsible for making any deposits required with utility
companies. 
 7.4 Sale Commissions. Seller and Purchaser each represent and warrant to the other that it has not dealt with any real
estate broker, sales person or finder in connection with this transaction other than Broker. If this transaction is closed, Seller shall pay Broker in accordance with their separate agreement. Broker is an independent contractor and is not
authorized to make any agreement or representation on behalf of Seller. Except as expressly set forth above, if any claim is made for broker’s or finder’s fees or commissions in connection with the negotiation, execution or consummation of
this Agreement or the transactions contemplated hereby on behalf of, or by through or under either party, such party shall defend, indemnify and hold harmless the other from and against any such claim based upon any purported or actual statement,
representation or agreement of such party. 
 ARTICLE 8: REPRESENTATIONS AND WARRANTIES 

8.1 Seller’s Representations and Warranties. As a material inducement to Purchaser to execute this Agreement and consummate this
transaction, Seller represents and warrants to Purchaser that: 
 (a) Organization and Authority. Seller has been duly organized and
is validly existing as a limited liability company, in good standing in the State of Delaware and is qualified to do business in the state in which the Property is located. Seller has the full right and authority and has obtained any and all
consents required to enter into this Agreement and to consummate or cause to be consummated the transactions contemplated hereby. This Agreement has been, and all of the documents to be delivered by Seller at the Closing will be, authorized and
properly executed and constitutes, or will constitute, as appropriate, the valid and binding obligation of Seller, enforceable in accordance with their terms. 

(b) Conflicts and Pending Action. There is no agreement to which Seller is a party or to Seller’s knowledge binding on Seller which
is in conflict with this Agreement. To Seller's knowledge, there is no action or proceeding pending, or threatened in writing, against Seller or the Property, including condemnation proceedings, which (i) challenges or impairs Seller’s
ability to execute or perform its obligations under this Agreement, or (ii) materially and adversely affects the Property, except as set forth on Schedule 8.1(b). 

  
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 (c) Rent Roll and Operating Statements. To Seller’s knowledge, the Rent Roll provided
or to be provided to Purchaser is or will be true, correct and complete in all material respects as of the date thereof. To Seller’s knowledge, Seller has provided Purchaser with complete copies of the Leases and any written amendments thereto.
The Operating Statements were prepared by or for Seller in the ordinary course of its business in the same manner as it prepares or obtains such reports for its other properties and are the Operating Statements used and relied upon by Seller in
connection with its operation of the Property. 
 (d) Service Contracts. To Seller's knowledge, the list of service contracts
affecting the Property (“Service Contracts”) attached hereto as Exhibit H is true, correct, and complete as of the date of its delivery in all material respects. To Seller's knowledge, neither Seller, nor any other party, is
in material default under any Service Contract. 
 (e) Compliance with Law. To Seller’s knowledge, Seller is not in actual
receipt of and has not received any written notice, addressed specifically to Seller and sent by any governmental authority or agency having jurisdiction over the Property, that the Property or its use is in material violation of any law, ordinance,
or regulation, and, to Seller’s knowledge, no such notice is threatened. 
 (f) ERISA. Seller does not hold the “plan
assets” of any employee benefit plan or other plan within the meaning of 29 CFR 101, as modified by Section 3(42) of ERISA. 
 (g)
OFAC. Neither Seller nor, to Seller’s knowledge, any of its affiliates, partners, members, shareholders or other equity owners, and none of their respective employees, officers, directors, representatives or agents, is a person or entity
with whom U.S. persons or entities are restricted from doing business under regulations of OFAC (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including the
September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action. 

(h) No Bankruptcy or Dissolution. No “Bankruptcy/Dissolution Event” (as defined below) has occurred with respect to Seller
that would prevent Seller from performing its obligations under this Agreement. As used herein, a “Bankruptcy/Dissolution Event” means any of the following: (a) the commencement of a case under Title 11 of the U.S. Code, as now
constituted or hereafter amended, or under any other applicable federal or state bankruptcy law or other similar law; (b) the appointment of a trustee or receiver of any property interest; (c) an assignment for the benefit of creditors;
(d) an attachment, execution or other judicial seizure of a substantial property interest; or (e) a dissolution or liquidation. 

“Seller’s knowledge” as used in this Agreement means the current actual knowledge of Michael Underwood, the person with overall
asset management responsibility for the Property, without any duty of inquiry or investigation. 
 8.2 Purchaser’s Representations
and Warranties. As a material inducement to Seller to execute this Agreement and consummate this transaction, Purchaser represents and warrants to Seller that: 

(a) Organization and Authority. Purchaser has been duly organized and is validly existing as a limited partnership, in good standing in
the State of Delaware and is qualified to do business in the state in which the Property is located. Purchaser has the full right and authority to, and has obtained any and all consents required to, enter into this Agreement and to consummate or
cause to be consummated the transactions contemplated hereby. This Agreement has been, and all of the documents to be delivered by Purchaser at the Closing will be, authorized and properly executed and constitutes, or will constitute, as
appropriate, the valid and binding obligation of Purchaser, enforceable in accordance with their terms. 

  
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 (b) Conflicts and Pending Action. There is no agreement to which Purchaser is a party or
to Purchaser’s knowledge binding on Purchaser which is in conflict with this Agreement. There is no action or proceeding pending or, to Purchaser’s knowledge, threatened against Purchaser which challenges or impairs Purchaser’s
ability to execute or perform its obligations under this Agreement. 
 (c) ERISA. Purchaser does not hold the “plan assets”
of any employee benefit plan or other plan within the meaning of 29 CFR 101, as modified by Section 3(42) of ERISA. 
 (d) OFAC.
Neither Purchaser nor, to Purchaser’s knowledge, any of its affiliates, nor any of their respective partners, members, shareholders or other equity owners, and none of their respective employees, officers, directors, representatives or agents
(excluding persons and entities whose sole affiliation with Purchaser is as a shareholder of Trade Street Residential, Inc.), is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of OFAC
(including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who
Commit, Threaten to Commit, or Support Terrorism), or other governmental action. 
 (e) No Bankruptcy or Dissolution. No
“Bankruptcy/Dissolution Event” (as defined below) has occurred with respect to Purchaser that would prevent Purchaser from performing its obligations under this Agreement. 

ARTICLE 9: DEFAULT AND DAMAGES 

9.1 Default by Purchaser. If Purchaser defaults in its obligation to purchase the Property from Seller pursuant to this Agreement,
Purchaser agrees that Seller shall have the right to have the Escrow Agent deliver the Earnest Money to Seller as liquidated damages to recompense Seller for time spent, labor and services performed, and the loss of its bargain. Purchaser and Seller
agree that it would be impracticable or extremely difficult to affix damages if Purchaser so defaults and that the Earnest Money, together with the interest thereon, represents a reasonable estimate of Seller’s damages. Seller agrees to accept
the Earnest Money as Seller’s total damages and sole remedy and relief hereunder if Purchaser defaults in an obligation hereunder; provided, however, the foregoing shall not limit any indemnity or other obligation of Purchaser that expressly
survives termination of this Agreement. If Purchaser does so default, this Agreement shall be terminated and Purchaser shall have no further right, title, or interest in or to the Property. 

9.2 Default by Seller. If Seller defaults in its obligation to sell and convey the Property to Purchaser pursuant to this Agreement,
Purchaser’s sole remedy shall be to elect one of the following: (a) to terminate this Agreement, in which event Purchaser shall be entitled to the return of the Earnest Money and shall be paid by Seller Purchaser’s actual and
verifiable third party out-of-pocket costs relating directly to this transaction in an amount not to exceed $50,000.00, or (b) to bring a suit for specific performance, provided that any suit for specific performance must be brought within 30
days of Seller’s default, to the extent permitted by law, Purchaser hereby waiving the right to bring suit at any later date. As a condition precedent to any suit for specific performance, Purchaser must have tendered to the Escrow Agent all of
its deliveries on or before the Closing Date. Purchaser hereby waives any other rights or remedies. This Agreement confers no present right, title or interest in the Property to Purchaser and Purchaser agrees not to file a lis pendens or other
similar notice against the Property except in connection with, and after, the filing of a suit for specific performance. 
 9.3
Limitations. 
 (a) Limitation Period. Seller’s warranties, representations and indemnities contained in this Agreement
and in any document executed by Seller pursuant to this Agreement (other than the Deed) shall survive Purchaser’s purchase of the Property only for a period commencing on the Closing Date and ending on that date which is 9 months after the
Closing Date (the “Limitation Period”). During the Limitation Period, Seller agrees to maintain its entity existence. Seller’s liability for breach of any such representation or warranty or under any such indemnity shall be
limited to claims in excess of an aggregate $25,000 (the “Threshold Amount”), it being understood that such amount of damages shall accumulate until such time as the aggregate amount of damages equals or exceeds such Threshold
Amount, whereupon the Purchaser shall be entitled to indemnification hereunder 

  
 17 

 
for all such damages, including the Threshold Amount. Notwithstanding anything to the contrary herein, Seller’s aggregate liability for claims arising out of such representations, warranties
and/or indemnities shall not exceed $1,000,000. Purchaser shall provide written notice to Seller prior to the expiration of the Limitation Period of any alleged breach of such warranties or representations and/or claim for indemnification. Purchaser
shall allow Seller 30 days within which to cure such breach or settle such claim, or, if such breach or settlement cannot reasonably be cured or accomplished within 30 days, an additional reasonable time period, so long as such cure has been
commenced within such 30 days and is being diligently pursued. If Seller fails to cure such breach or settle such claim after written notice and within such cure period, Purchaser’s sole remedy shall be an action at law for actual damages as a
consequence thereof, which must be commenced, if at all, by that date which is thirty (30) days after expiration of the Limitation Period. The Limitation Period referred to herein shall apply to unknown as well as known breaches and claims.
Purchaser’s waiver and release set forth in Paragraph 2.5 shall apply fully to liabilities under such representations and warranties and is hereby incorporated by this reference. Except as specifically provided in this paragraph, none of
Seller’s representations, warranties, indemnities, covenants or agreements shall survive the Closing. Purchaser specifically acknowledges that such termination of liability represents a material element of the consideration to Seller. The
limitation as to Seller’s liability in this Paragraph 9.3(a) does not apply to the obligations of the parties with respect to prorations and adjustments under Article 7, which shall survive until the parties’ satisfaction of
their respective obligations under Paragraph 7.1(g). 
 (b) Disclosure. Notwithstanding any contrary provision of this
Agreement, if Seller becomes aware during the pendency of this Agreement prior to Closing of any matters which make any of its representations or warranties untrue, Seller shall promptly disclose such matters to Purchaser in writing. In the event
that Seller so discloses any matters which make any of Seller’s representations and warranties untrue in any material respect or in the event that Purchaser otherwise becomes aware during the pendency of this Agreement prior to Closing of any
matters which make any of Seller’s representations or warranties untrue in any material respect, Seller shall bear no liability for such matters (provided that such untruth is not the result of Seller’s breach of any express covenant set
forth in this Agreement), but Purchaser shall have the right to elect in writing on or before the Closing Date, (i) to waive such matters and complete the purchase of the Property without reduction of the Purchase Price in accordance with the
terms of this Agreement, or (ii) as to any matters disclosed following the expiration of the Due Diligence Period, to terminate this Agreement whereby the Earnest Money shall be promptly returned to Purchaser (provided Purchaser is not in
default of this Agreement) and Purchaser shall be paid by Seller Purchaser’s actual and verifiable third party out-of-pocket costs relating directly to this transaction in an amount not to exceed $50,000.00. Purchaser’s consent to the
close of escrow pursuant to this Agreement shall waive any liability on the part of Seller for breaches of representations and warranties of which Purchaser had actual knowledge as of the Closing. 

ARTICLE 10: EARNEST MONEY PROVISIONS 

10.1 Investment and Use of Funds. The Escrow Agent shall invest the Earnest Money in government insured
interest-bearing accounts satisfactory to Purchaser and Seller, shall not commingle the Earnest Money with any funds of the Escrow Agent or others, and shall promptly provide Purchaser and Seller with
confirmation of the investments made. If the Closing under this Agreement occurs, the Escrow Agent shall apply the Earnest Money to the Purchase Price on the Closing Date. 

10.2 Termination. Except for Purchaser’s right to a return of the Earnest Money upon termination of this Agreement as set forth in
Paragraph 2.4 and as otherwise expressly provided in this Agreement, upon not less than 5 business days’ prior written notice to the Escrow Agent and the other party, Escrow Agent shall deliver the Earnest Money to the party requesting
the same; provided, however, that if the other party shall, within said 5 business day period, deliver to the requesting party and the Escrow Agent a written notice that it disputes the claim to the Earnest Money, Escrow Agent shall retain the
Earnest Money until it receives written instructions executed by both Seller and Purchaser as to the disposition and disbursement of the Earnest Money, or until ordered by final court order, decree or judgment, which is not subject to appeal, to
deliver the Earnest Money to a particular party, in which event the Earnest Money shall be delivered in accordance with such notice, instruction, order, decree or judgment. 

  
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 10.3 Interpleader. Seller and Purchaser mutually agree that in the event of any
controversy regarding the Earnest Money, unless mutual written instructions are received by the Escrow Agent directing the Earnest Money’s disposition, the Escrow Agent shall not take any action, but instead shall await the disposition of any
proceeding relating to the Earnest Money or, at the Escrow Agent’s option, the Escrow Agent may interplead all parties and deposit the Earnest Money with a court of competent jurisdiction in which event the Escrow Agent may recover all of its
court costs and reasonable attorneys’ fees. Seller or Purchaser, whichever loses in any such interpleader action, shall be solely obligated to pay such costs and fees of the Escrow Agent, as well as the reasonable attorneys’ fees of the
prevailing party in accordance with the other provisions of this Agreement. 
 10.4 Liability of Escrow Agent. The parties
acknowledge that the Escrow Agent is acting solely as a stakeholder at their request and for their convenience, that the Escrow Agent shall not be deemed to be the agent of either of the parties, and that the Escrow Agent shall not be liable to
either of the parties for any action or omission on its part taken or made in good faith, and not in disregard of this Agreement, but shall be liable for its negligent acts and for any loss, cost or expense incurred by Seller or Purchaser resulting
from the Escrow Agent’s mistake of law respecting the Escrow Agent’s scope or nature of its duties. Seller and Purchaser shall jointly and severally indemnify and hold the Escrow Agent harmless from and against all costs, claims and
expenses, including reasonable attorneys’ fees, incurred in connection with the performance of the Escrow Agent’s duties hereunder, except with respect to actions or omissions taken or made by the Escrow Agent in bad faith, in disregard of
this Agreement or involving negligence on the part of the Escrow Agent. 
 ARTICLE 11: MISCELLANEOUS 

11.1 Parties Bound. Neither party may assign this Agreement without the prior written consent of the other, and any such prohibited
assignment shall be void. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the respective legal representatives, successors, assigns, heirs, and devisees of the parties. 

11.2 Press Release. Neither Seller nor Purchaser will release or cause or permit to be released any press notices, or publicity (oral
or written) or advertising promotion relating to, or otherwise announce or disclose or cause or permit to be announced or disclosed, in any manner whatsoever, the terms, conditions or substance of this Agreement without first obtaining the written
consent of the other party. The foregoing shall not preclude either party from discussing the substance or any relevant details of such transactions with any of its attorneys, accountants, professional consultants, lenders, partners, investors, or
any prospective lender, partner or investor, as the case may be, provided that such party has obtained the agreement from the persons to whom such disclosure has been made to keep such disclosed information confidential, or prevent either party
hereto, from complying with laws, rules, regulations and court orders, including without limitation, governmental regulatory, disclosure, tax and reporting requirements. In addition to any other remedies available to a party, each party shall have
the right to seek equitable relief, including without limitation injunctive relief or specific performance, against the other party in order to enforce the provisions of this Paragraph 11.2. The provisions of this Paragraph 11.2
shall survive the Closing. 
 11.3 Headings. The article and paragraph headings of this Agreement are for convenience only and in no
way limit or enlarge the scope or meaning of the language hereof. 
 11.4 Invalidity and Waiver. If any portion of this Agreement is
held invalid or inoperative, then so far as is reasonable and possible the remainder of this Agreement shall be deemed valid and operative, and effect shall be given to the intent manifested by the portion held invalid or inoperative. The
failure by either party to enforce against the other any term or provision of this Agreement shall not be deemed to be a waiver of such party’s right to enforce against the other party the same or any other such term or provision in the future.

 11.5 Governing Law. This Agreement shall, in all respects, be governed, construed, applied, and enforced in accordance with the
law of the State of North Carolina. 
 11.6 No Third Party Beneficiary. This Agreement is not intended to give or confer any
benefits, rights, privileges, claims, actions, or remedies to any person or entity as a third party beneficiary, decree, or otherwise. 

  
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 11.7 Entirety and Amendments. This Agreement embodies the entire agreement between the
parties and supersedes all prior agreements and understandings relating to the Property except for any confidentiality agreement binding on Purchaser, which shall not be superseded by this Agreement. This Agreement may be amended or supplemented
only by an instrument in writing executed by the party against whom enforcement is sought. 
 11.8 Time. Time is of the essence in
the performance of this Agreement. 
 11.9 Attorneys’ Fees. Should either party employ attorneys to enforce any of the
provisions hereof, the party against whom any final judgment is entered agrees to pay the prevailing party all reasonable costs, charges, and expenses, including attorneys’ fees, expended or incurred in connection therewith. 

11.10 Notices. All notices required or permitted hereunder shall be in writing and shall be served on the parties at the addresses set
forth in Paragraph 1.1. Any such notices shall be either (a) sent by overnight delivery using a nationally recognized overnight courier, in which case notice shall be deemed delivered one business day after deposit with such courier,
(b) sent by email, with written confirmation sent the same day by overnight delivery using a nationally recognized overnight courier, in which case notice shall be deemed delivered upon transmission of such email, (c) sent by personal
delivery, in which case notice shall be deemed delivered upon receipt. Any notice sent by email or personal delivery and delivered after 5:00 p.m., Washington, D.C. time, shall be deemed received on the next business day. A party’s address may
be changed by written notice to the other party; provided, however, that no notice of a change of address 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. 
 11.11 Construction. The parties acknowledge that the parties
and their counsel have reviewed and revised this Agreement and that the normal rule of construction — to the effect that any ambiguities are to be resolved against the drafting party — shall not be employed in the interpretation of
this Agreement or any exhibits or amendments hereto. 
 11.12 Calculation of Time Periods. Unless otherwise specified, in computing
any period of time described herein, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday
or legal holiday for national banks in the location where the Property is located, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday, or legal holiday. The last day of any period of time described
herein shall be deemed to end at 5:00 p.m., Washington, D.C. time. 
 11.13 Execution in Counterparts. This Agreement may be executed
in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one Agreement. To facilitate execution of this Agreement, the parties may execute and exchange by email counterparts
of the signature pages. 
 11.14 WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY WAIVE ANY
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

11.15 Confidentiality. Purchaser and its representatives and Seller and its representatives shall hold in strictest confidence the
terms of this Agreement and the transaction contemplated hereby. Furthermore, Purchaser and its representatives shall hold in strictest confidence all data and information obtained with respect to the purchase, sale, construction, operation and
management of the Property, whether obtained before or after the execution and delivery hereof, and shall not use such terms, data or information for purposes unrelated to this Agreement or disclose the same to others except as expressly permitted
hereunder. The preceding sentence shall not be construed to prevent Purchaser from disclosing to its prospective lenders or investors, or to its officers, directors, attorneys, accountants, architects, engineers and consultants to perform their
designated tasks in connection with Purchaser’s inspection of the Property, provided Purchaser advises any such party of the confidential nature of the information disclosed. However, neither party shall have this obligation concerning
information which: (a) is 

  
 20 

 
published or becomes publicly available through no fault of either the Purchaser or Seller; (b) is rightfully received from a third party; or (c) is required to be disclosed by law. In
the event this Agreement is terminated or Purchaser fails to perform hereunder, upon written direction from Seller, Purchaser shall promptly return to Seller any statements, documents, schedules, exhibits or other written information obtained from
Seller in connection with this Agreement or the transactions contemplated hereby, or promptly destroy such information. In the event of a breach or threatened breach by Purchaser or its agents, consultants and/or lenders of this paragraph, Seller
shall be entitled to an injunction restraining Purchaser from disclosing, in whole or in part, such confidential information. Nothing herein shall be construed as prohibiting Seller from pursuing any other available remedy at law or in equity for
such breach or threatened breach. 
 11.16 Disclosures. Prior to Closing, neither Seller nor Purchaser shall make any public
announcement or disclosure of any information related to this Agreement to outside brokers or third parties without the prior written specific consent of the other; provided, however, that Seller and Purchaser may make disclosure of this Agreement
to its lenders, creditors, officers, managers, members, employees and agents as necessary to perform its obligations hereunder. After Closing, either party may announce or disclose the fact that the transaction contemplated by this Agreement was
closed, but neither party may disclose any specific information relating to the terms of this Agreement, including without limitation the Purchase Price or the identity of the other party, to outside brokers or third parties without the prior
written specific consent of the other. In the event of a breach or threatened breach by Seller, Purchaser or their agents, consultants and/or lenders of this Paragraph 11.16, then in addition to any other remedy available hereunder the
nonbreaching party shall be entitled to an injunction restraining the breaching party from disclosing, in whole or in part, such confidential information. The provisions of this Paragraph 11.6 shall survive the Closing. 

11.17 Limitation of Liability. Notice is hereby given that all persons dealing with Seller shall look to the assets of Seller
for the enforcement of any claim against Seller. None of the trustees, officers, directors, employees, members, owners, partners or shareholders of Seller shall have any personal liability for any of the liability or obligations of Seller.

 11.18 Indemnification. Subject to the terms of Paragraphs 2.3 (b), 2.5 and 9.3 of this Agreement,
Seller agrees to protect, defend, indemnify and hold harmless Purchaser, its legal representatives, successors and assigns from any and all losses, damages, expenses, fees (including, without limitation, reasonable attorneys’ fees), court
costs, suits, judgments, liability, claims and demands whatsoever in law or in equity, incurred or suffered by Purchaser, its legal representatives, successors and assigns or any of them resulting from events occurring with respect to the Property
prior to the Closing Date. Purchaser agrees to protect, defend, indemnify and hold harmless Seller, Seller’s Affiliates, and their respective legal representatives, successors and assigns from any and all losses, damages, expenses, fees
(including, without limitation, reasonable attorneys’ fees), court costs, suits, judgments, liability, claims and demands whatsoever in law or in equity, incurred or suffered by Seller, Seller’s Affiliates, or their respective legal
representatives, successors and assigns or any of them resulting from events occurring with respect to the Property on or after the Closing Date. Subject to the express limitation of this Agreement, the provisions of this Paragraph 11.18
shall survive indefinitely any closing and shall not be merged into the closing documents. 
 ARTICLE 12: SPECIAL PROVISION
REGARDING CONDOMINIUM 
 12.1 Condominium Conversion Agreement. As a material part of the consideration for Seller’s
execution and delivery of this Agreement, Purchaser shall execute and deliver at Closing a Condominium Conversion Agreement in the form set forth on Exhibit E attached hereto, which will be recorded against the Property at the Closing.

 12.2 Rule 3.14 Audit. Until Closing and for a period of one year following the Closing Date, Seller agrees to provide to
Purchaser and Purchaser’s accountants existing non-confidential and non-proprietary accounting and financial materials relating to Seller’s operation of the Property (including, without limitation, bank statements, rent rolls and
property-level accounting records) reasonably requested by Purchaser for the purpose of preparing a property-level Statement of Revenues and Certain Expenses (“Rule 3-14 Financials”) as required by Rule 3-14 of Securities and Exchange
Commission Regulation S-X and sufficient to support an audit opinion by an 

  
 21 

 
independent accounting firm with respect to the Rule 3-14 Financials; provided, that Seller shall not be required to prepare or compile any materials nor shall Seller be required to incur any
third party costs or expenses in connection therewith nor shall Seller be required to make any representations or warranties with respect to such information beyond a customary representation letter reasonably requested by any accounting firm
engaged by Purchaser to deliver its auditors report with respect to the Rule 3-14 Financials. 
 Purchaser agrees to indemnify, defend and
hold harmless Seller, Seller's Affiliates, and their respective legal representatives, successors and assigns from any and all losses, damages, expenses, fees (including, without limitation, reasonable attorneys’ fees), court costs, suits,
judgments, liability, claims and demands whatsoever in law or in equity, incurred or suffered by Seller, Seller's Affiliates, or their respective legal representatives, successors and assigns or any of them resulting from Purchaser’s use of any
information that has been furnished by Seller to Purchaser in accordance with this Paragraph 12.2 in any filing with the Securities and Exchange Commission (including the incorporation by reference of any such filing in any other filing).

 [Signature Page Follows] 

  
 22 

 SIGNATURE PAGE TO 

PURCHASE AND SALE AGREEMENT 
 BY AND
BETWEEN 
 CRP/WF CREEKSTONE, LLC 

AND 
 TRADE STREET OPERATING
PARTNERSHIP, LP 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year written below. 

 

			
	SELLER:
	
	 CRP/WF Creekstone, LLC
 a Delaware
limited liability company

		
	 By:
	 	 /s/ Greg Bonifield

	 Name:
	 	 Greg Bonifield

	 Title:
	 	 Manager

 Dated as of: November 16, 2012 

PURCHASER: 
 TRADE STREET OPERATING PARTNERSHIP, LP, 

a Delaware limited partnership 
  

									
	By:	  	Trade Street OP GP, LLC,	  	
		  	a Delaware limited liability company,	  	
		  	its General Partner	  	
		  		  		  		  	
		  	By:	  	Trade Street Residential, Inc.,
		  		  	a Maryland corporation,
		  		  	its Sole Member
		  		  		  		  	
		  		  	By:	  	 /s/ Bert Lopez
	  	
		  		  	Name:	  	Bert Lopez	  	
		  		  	Title:	  	CFO	  	

 Dated as of: November 16, 2012 

 JOINDER OF ESCROW AGENT 

Escrow Agent has executed this Agreement in order to confirm that Escrow Agent shall hold the Earnest Money in escrow, and shall disburse the
Earnest Money pursuant to the provisions of Article 10 hereof. 
  

							
		 		 	FIDELITY NATIONAL TITLE INSURANCE COMPANY
				
		 		 	By:	 	/s/Leslie M. Flowers
		 		 	Name:	 	Leslie M. Flowers
	Date: November 16, 2012	 		 	Title:	 	Title Officer

 “Escrow Agent” 

  
 24 

 EXHIBITS 
  

					
			
	 A
	  	-	  	Legal Description
			
	 B
	  	-	  	Special Warranty Deed
			
	 C
	  	-	  	Assignment of Leases and Contracts and Bill of Sale
			
	 D
	  	-	  	Notice to Tenants
			
	 E
	  	-	  	Condominium Conversion Agreement
			
	 F
	  	-	  	Plans and Specifications
			
	 G
	  	-	  	Tangible Personal Property
			
	 H
	  	-	  	Service Contracts
	
	SCHEDULES
			
		  		  	
			
	 4.6(b)
	  	-	  	Punch List Holdback Agreement
			
	 6.2(e)
	  	-	  	Assignment of Construction Contract
			
	 8.1(b)
	  	-	  	Notices Received

 EXHIBIT A 

LEGAL DESCRIPTION 
 ALL those certain
pieces, parcels or tracts of land lying and being in the City of Durham, Durham County, North Carolina, and being more particularly described as follows: 

Tract I: 
 BEGINNING at an existing iron pipe at the
western right-of-way of S. Miami Boulevard (NC 54), a variable width right-of-way, in the northeastern corner of the property of Nelson Partners, either now or formerly, as described in instrument recorded in Deed Book 2228, Page 646, in the Durham
County Registry (the “Nelson Property”); thence leaving the western margin of the right-of-way of S. Miami Boulevard (NC 54), along the northern boundary line of the Nelson Property, North 81° 52' 55'' West 189.73 feet to an existing
iron pipe in the northwestern comer of the Nelson Property; thence along the western boundary line of Nelson Property, South 07° 41' 03” West 140.20 feet to at1 existing iron pipe in the northern boundary line of the property of Edith W.
Marren, either now or formerly, as described in instrument recorded in Deed Book 970, Page 282, in the Durham County Registry (the “Marren Property”); thence along and with a portion of the northern boundary line of the Marren Property,
North 89° 43' 46” West 20.75 feet to a calculated point in the northwestern corner of the Marren Property and the northeastern comer of the properly of Preschool Enterprises, LLC; either now or formerly, as described in instrument recorded
in Deed Book 5084, Page 381, in the Durham County Registry (the “Preschool Property”); thence along and with the nortl1e111 boundary lines of the Preschool Property, the property of General Telephone Company of the Southeast, either now or
formerly, as described in instrument recorded in Deed Book 1206, Page 286, in the Durham County Registry, and the property of Nelson Partners, either now or formerly, as described in instrument recorded in Deed Book 5904, Page 202, in the
Durham·County Registry, North 89° 45' 34” West a total distance of 540.48 feet (passing through iron pipes set at 221.94 feet and 442.54 feet) to an existing iron pipe on the southeastern margin of the tight-of-way of North Carolina
Railroad Company in the southeastern corner of the property of North Carolina Railroad Company, either now or formerly, as described in instrument recorded in Deed Book 5444, Page 342, in the Durham County Registry (the “NC Railroad
Property”), said existing iron pipe being the northeastern comer of the property of North Carolina Railroad Company, either now or formerly, as described in instrument recorded in Deed Book 2228, Page 646, in the Durham County Registry; thence
along and with the southeastern margin of the right-of-way of the NC Railroad Property the following two (2) courses and distances: (i) along a curve to the right having a radius of 3,719.23 feet, a chord bearing and distance of North
17° 12' 30” East 835.85 feet to an existing iron pipe and (ii) North 23° 37' 02” East 283.13 feet to an existing iron pipe in the southwestern comer of the property of Creekstone Developers, LLC. either now or formerly, as
described in instrument recorded in Deed Book 4972, Page 45, in the Durham County Registry (the “Creekstone Property”); thence leaving the eastern margin of the right-of-way of NC Railroad Property along and with the southwestern boundary
line of the Creekstone Property the following three (3) courses and distances: (i) South 66° 23' 37” East 141.14 feet to a PK nail; (ii) along a curve to the left having a radius of 180.00 feet m1d a chord bearing and
distance of South 78° 58' 47” East 78.45 feet to a PK nail; and (iii) North 88° 26' 04” East 11.42 feet to a PK nail in the western boundary line of the property of Park Partners, LLC, either now or formerly, as described in
instrument recorded in Deed Book 4250, Page 686, in the Durham County Registry (the “Park Partners Property”), such PK nail being South 35° 07' 42” West 687.08 feet from NCGS Monument “Creekstone” having NAD 83(86)
coordinates of N: 775,943.18 and E: 2,044,346.53 with a scale factor of 0.9999329; thence along the western boundary line of the Park Partners Property, South 08° 14'56” West 196.93 feet to a PK nail; thence along the southern boundary line
of the Park Partners Property, South 81° 54' 50” 

 
East 313.39 feet to an existing iron pipe on the western margin of the right-of-way of S. Miami Boulevard; thence along and with the western margin of the right-of-way of S. Miami Boulevard the
following three (3) courses and distances: (i) South 08° 15' 47” West 334.20 feet to an iron pipe set; (ii) South 08° 16' 51” West 99.94 feet to an iron pipe set; and (iii) South 08° 15'45” West210.44
feet to the point and place of BEGINNING, containing 588,075 square feet, 13.50 acres, more or less, as shown on that certain survey entitled “ALTA/ACSM Land Title Survey, Miami Boulevard & Hopson Road, Commercial Tract, City of
Durham, Durham County, North Carolina”, prepared by Ronald T. Frederick, P.L.S., of The John R. McAdams Company, Inc., dated May 9, 2011, as job project number WDF-10000. 

PIN: 0747-03-34-8813 
 Tract II: 

BEGINNING at an existing iron pipe on the western margin of the right-of-way of S. Miami Boulevard (NC 54), a variable width right-of-way, in a southeastern
comer of the property of Nelson Partners, either now or formerly, as described in instrument recorded in Deed Book 5904, Page 202, in the Durham County Registry (the “Nelson I Properly”); thence along and with the western margin of the
right-of-way of S. Miami Boulevard, South 08° 16' 26” West 116.98 feet to an iron pipe set in the northeastern corner of the property of Nelson Partners, either now or formerly, as described in instrument recorded in Deed Book 2228, Page
646, in the Durham County Registry (the “Nelson II Property”); thence leaving the western margin of the right-of-way of S. Miami Boulevard along and with the northern boundary line of the Nelson II Property. North 88° 19' 09” West
110.54 feet to an iron pipe set in the northwestern comer of the Nelson II Property and the northeastern corner of the property of Edith W. Marren, either now or formerly, as described in instrument recorded in Deed Book 970, Page 282, in the Durham
County Registry (the “Marren Property”); thence along and with the northern boundary line of the Marren Property, North 89° 43' 46” West 79.25 feet to an existing iron pipe in a southeastern comer of the Nelson I Property; thence
along and with a eastern boundary line of the Nelson I Property, North 07° 41' 03” East 140.20 feet to an existing iron pipe in a southeastern corner of the Nelson I Property; thence along and with a southern boundary line of the Nelson I
Property, South 81° 52' 55” East 189.73 feet to the point and place of BEGINNING, containing 24,205 square feet, 0.56 acres, more or less, as shown on that certain survey entitled “ALTA/ACSM Land Title Survey, Miami
Boulevard & Hopson Road, Commercial Tract, City of Durham, Durham County, North Carolina”, prepared by Ronald T. Frederick, P.L.S., of The John R. McAdams Company, Inc., dated May 9, 2011, as job project number WDF-10000. 

PIN: 0747-03-44-0437 
 Tract III: 

TO FIND THE TRUE POINT OF BEGINNING commence at an existing iron pipe on the western margin of the right-of-way of S. Miami Boulevard (NC 54), a variable width
right-of-way, in the northeastern corner of the property of Nelson Partners, either now or formerly, as described in instrument recorded in Deed Book 2228, Page 646, in the Durham County Registry (the “Nelson Property”); thence along and
with the western margin of the right-of-way of S. Miami Boulevard, South 08° 16' 26” West 116.98 feet to an iron pipe set and the true point of BEGINNJNG; running thence along and with the western margin of the right-of-way of S. Miami
Boulevard, South 08° 07' 06” West 176.61 feet to a PK nail in the northwestern intersection of the western margin of the right-of-way of S. Miami Boulevard and the northern margin of the right-of-way of Hopson Road a variable width
right-of-way; thence leaving the western margin of the right-of-way of S. Miami Boulevard, along and with the northern margin of the right-of-way of Hopson Road, North 87° 44' 12” West 109.66 feet to an iron pipe set in the southeastern
comer of the property of Edith W. Marren, either now or formerly, as described in instrument recorded in 

 
Deed Book 970, Page 282, in the Durham County Registry (the “Marren Property”); thence leaving the northern margin of the right-of-way of Hopson Road along and with the eastern boundary
line of the Marren Property, North 07° 52' 18” East 175.40 feet to an iron pipe set in the northeastern comer of the Marren Property; thence along and with the southern boundary line of the Nelson Property, South 88° 19' 09” East
110.54 feet to the point and place of BEGINNING, containing 19,271 square feet, 0.44 acres, more or less, as shown on that certain survey entitled “ALTA/ACSM Land Title Survey, Miami Boulevard & Hopson Road, Commercial Tract, City of
Durham, Durham County, North Carolina”, prepared by Ronald T. Frederick, P.L.S., of The John R. McAdams Company, Inc., dated May 9, 2011, as job project number WDF-10000. 

PIN: 0747-03-44-0352 
 Tract IV: 

BEGINNING at an existing iron pipe on the northern margin of the right-of-way of Hopson Road, a variable width right-of-way, at the southwestern corner of the
property of General Telephone Company of the Southeast, either now or formerly, as described in instrument recorded in Deed Book 1206, Page 286, in the Durham Registry (the “Telephone Property”); thence along and with the northern margin
of the right-of-way of Hopson Road, North 88° 03' 40” West 118.85 feet to an iron pipe set in the southeastern corner of the property of North Carolina Railroad Company, either now or formerly, as described in instrument recorded in Deed
Book 2228, Page 646, in the Durham County Registry (the “Railroad Property”); thence leaving the northern right-of-way of Hopson Road along and with the eastern boundary line of the Railroad Property along a curve to the right having a
radius of 3719.83 feet and a chord bearing and distance of North 09° 31' 2811 East 157.46 feet to an existing iron pipe in the southeastern corner of the property of North Carolina Railroad Company, either now or formerly, as described in
instrument recorded in Deed Book 5444, Page 342, in the Durham County Registry (the “NC Railroad Property”), and the southwestern comer of the property of Nelson Partners, either now or formerly, as described in instrument recorded in Deed
Book 5904, Page 202, in the Durham County Registry (the “Nelson Property”); thence leaving the eastern margin of the right-of-way of NC Railroad Property along and with the southern boundary line of the Nelson Property, South 89° 45'
34” East 97.94 feet to an iron pipe set in the northwestern comer of the Telephone Property; thence along and with the western boundary line of the Telephone Property, South 01° 52' 43” West 158.99 feet to the point and place of
BEGINNJNG, containing 17,146 square feet, 0.39 acres, more or less, as shown on that certain survey entitled “ALTA/ ACSM Land Title Survey, Miami Boulevard & Hopson Road, Commercial Tract, City of Durham, Durham County, North
Carolina”, prepared by Ronald T. Frederick, P.L.S., of The John R. McAdams Company, Inc., dated May 9, 2011, as job project number WDF-10000. 

PIN: 0747-03-34-4311 

 EXHIBIT B 

FORM OF SPECIAL WARRANTY DEED 
  

			
	Excise Tax: $                    	  	Tax Lot No./Parcel Identifier No.:                     

 Mail after recording to:
                                 

This instrument was prepared by:
                         

Brief Description For The Index: 
  

 
  

 
 NORTH CAROLINA SPECIAL WARRANTY DEED 

THIS DEED made as of             , 201    , by and between: 

 

					
	GRANTOR:	 		 	GRANTEE:
	 	 		 	  

			
		 		 	Address:
		 		 	  

		 		 	  

 Enter in appropriate block for each party: name, address, and, if appropriate, character of entity, e.g. corporation or
partnership. The designation Grantor and Grantee as used herein shall include said parties, their heirs, successors and assigns, and shall include singular, plural, masculine, feminine or neuter as required by context. 

WITNESSETH, that Grantor, for a valuable consideration paid by Grantee, the receipt of which is hereby acknowledged, has and by these presents does
grant, bargain, sell and convey unto Grantee in fee simple, all that certain lot or parcel of land situated in the City of             ,
             County, North Carolina and more particularly described as follows: 
 See
Exhibit A attached hereto and incorporated herein by reference. 
 The property hereinabove described was acquired by Grantor by instrument
recorded in Book             , Page             , Office of the
            County Register of Deeds. 
 TO HAVE AND TO HOLD the aforesaid lot or parcel
of land and all improvements thereon and all privileges and appurtenances thereto belonging to Grantee in fee simple. 
 And Grantor covenants with Grantee,
that Grantor has done nothing to impair such title as Grantor received, and Grantor will warrant and defend the title against the lawful claims of all persons claiming by, under or through Grantor, except for the exceptions listed on
Exhibit B attached hereto and incorporated herein by reference. 
 IN WITNESS WHEREOF, Grantor has caused this deed to
be duly executed as of the date first above written. 

 
					
	GRANTOR:
		
		 	 CRP/WF CREEKSTONE, LLC,
 a Delaware
limited liability company

			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

 STATE OF
                                 

COUNTY OF                      

I,             , a Notary Public of
             County, State of             , do hereby certify that
            , (the “Signatory”),              of
            , a             company, personally appeared before me this day and by authority duly given, acknowledged the due
execution of the foregoing instrument on behalf of             . 
 I certify
that the Signatory personally appeared before me this day, and 
 (check one of the following) 

             (I have personal knowledge of the identity of the Signatory);
or 
              (I have seen satisfactory evidence of the
Signatory’s identity, by a current state or federal identification with the Signatory’s photograph in the form of: 

(check one of the following) 

             a driver’s license or 

             in the form of
                                ); or 

             (a credible witness has sworn to the identity of the
Signatory). 
 The Signatory acknowledged to me that he/she voluntarily signed the foregoing instrument for the purpose stated and in the
capacity indicated. 
 Witness my hand and official stamp or seal this
            day of             , 20     

 

			
		  	  

		  	Notary Public
		
		  	Print Name:
                                         
       
		  	[Note: Notary Public must sign exactly as on notary seal]
		
		  	My Commission Expires:
                                         
       

E  [NOTARY SEAL]
(MUST BE FULLY LEGIBLE) 

 EXHIBIT A 

[Legal Description] 

 EXHIBIT B 

[Permitted Exceptions] 

 EXHIBIT C 

ASSIGNMENT OF LEASES AND CONTRACTS AND BILL OF SALE 

This instrument is executed and delivered as of the              day of
            , 2012 pursuant to that certain Purchase and Sale Agreement (“Agreement”) dated             , 2012,
by and between CRP/WF Creekstone, LLC, a Delaware limited liability company (“Seller”), and             , a
             (“Purchaser”), covering the real property described in Exhibit A attached hereto (“Real Property”). 

1. Sale of Personalty. For good and valuable consideration, Seller hereby sells, transfers, sets over and conveys to Purchaser the
following (the “Personal Property”): 
 (a) Tangible Personalty. All of Seller’s right, title and interest, if
any, in and to all the furniture, fixtures, equipment, appliances, machinery, signage and other tangible personal property owned by Seller and located in or on the Real Property, including without limitation the tangible personal property listed on
Exhibit B attached hereto, except for items of personal property owned by tenants, any managing agent, or others, and, if the Personal Property includes computer hardware, any software installed therein, and subject to the revocable
non-exclusive license set forth in Paragraph 1.3 of the Agreement with respect to items of Personal Property bearing the name “Woodfield”; and 

(b) Intangible Personalty. All the right, title and interest of Seller, if any, in and to all of the following items, to the extent
assignable and without warranty: (A) all licenses, approvals and permits relating to the operation of the Property, (B) the marks identifying the Property, including, without limitation, “Creekstone”, (C) a non-exclusive
right in and to the express warranties issued to Seller in connection with the construction of the Project and still in effect; provided, however, that Seller shall retain a non-exclusive right in and to all of such warranties; (D) the Plans
and Specifications and other architectural and engineering drawings for the Improvements, and the agreement between Seller and Project Architect, and (E) telephone exchange numbers, website domains, and advertising materials used in connection
with the Property; but, Intangible Personal Property shall specifically exclude any and all trademarks, service marks and trade names of Seller and Seller’s Affiliates (including, without limitation, the name “Woodfield”), and with
reservation by Seller to use such names in connection with other property owned by Seller or Seller’s Affiliates. 
 2. Assignment of
Leases and Contracts. For good and valuable consideration, Seller hereby assigns, transfers, sets over and conveys to Purchaser, and Purchaser hereby accepts the following (the “Assigned Property”): 

(a) Leases. All of the landlord’s right, title and interest in and to the tenant leases listed in Exhibit B attached hereto
(“Leases”); 
 (b) Service Contracts and Commission Agreements. Seller’s right, title and interest in and to the
service contracts and commission agreements described in Exhibit C attached hereto (the “Contracts”). 
 3.
Assumption. Purchaser hereby accepts and assumes the liability and obligations of Seller under the Leases and Contracts arising after the date of this Agreement. 

4. Agreement Applies. The covenants, agreements, disclaimers, representations, warranties, indemnities and limitations provided in the
Agreement with respect to the Property (including, without limitation, the limitations of liability provided in the Agreement), are hereby incorporated herein by this reference as if herein set out in full and shall inure to the benefit of and shall
be binding upon Purchaser and Seller and their respective successors and assigns. 
 5. Disclaimer. As set forth in the Agreement,
which provisions are hereby incorporated by this reference as if herein set out in full, except for the Seller’s Warranties, the Personal Property and Assigned Property are conveyed by Seller and accepted by Purchaser AS IS, WHERE IS, AND
WITHOUT ANY REPRESENTATIONS OR WARRANTIES OF WHATSOEVER NATURE, EXPRESS OR IMPLIED, IT BEING 

 
THE INTENTION OF SELLER AND PURCHASER EXPRESSLY TO NEGATE AND EXCLUDE ALL WARRANTIES, INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR
PURPOSE, WARRANTIES CREATED BY ANY AFFIRMATION OF FACT OR PROMISE OR BY ANY DESCRIPTION OF THE PROPERTY CONVEYED HEREUNDER, AND ALL OTHER REPRESENTATIONS AND WARRANTIES WHATSOEVER CONTAINED IN OR CREATED BY THE UNIFORM COMMERCIAL CODE OF THE STATE
OR STATES WHERE THE REAL PROPERTY IS LOCATED. 
 6. Limitation of Liability. Notice is hereby given that all persons dealing with
Seller shall look to the assets of Seller for the enforcement of any claim against Seller. None of the trustees, officers, directors, employees, members, owners, partners or shareholders of Seller shall have any personal liability for any of the
liability or obligations of Seller. 
 7. Terms. Any capitalized term used but not defined herein shall have the meaning ascribed to
it in the Agreement. 
 IN WITNESS WHEREOF, the undersigned have caused this instrument to be executed as of the date written above. 

 

			
	SELLER:
	
	 CRP/WF CREEKSTONE, LLC
 a Delaware
limited liability company

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	Date:                     , 2012

  

			
	PURCHASER:
	
	
                          
                                         
             ,

a                          
                  

		
	By:	 	  

	Name:	 	  

	 Title:
	 	  

	
	Date:                     , 2012

 EXHIBIT D 

NOTICE TO RESIDENTS 

[Date] 
 [Project Name] 

[Address] 
 [City/State/ZIP] 

Dear Resident: 
 Notice is hereby given to the
tenants of              (the “Property”) that CRP/WF Creekstone, LLC, the current owner of the Property, has sold the Property
to            (“Purchaser”) effective (date of takeover). Purchaser has assumed all of the obligations of landlord under your lease, including any
obligations with respect to your security deposit, if any, which has been transferred to Purchaser. 
 Future notices and rental payments
with respect to your lease premises at the Property should be made to the Purchaser in accordance with your lease terms at the following address: 
  

 
  

 
  

 
  

			
	 Very truly yours,
  

SELLER:
  

CRP/WF CREEKSTONE, LLC,
 a Delaware limited liability
company

		
	By:	 	 
	Name:	 	  

	Title:	 	  

	
	Date:             , 2012

			
	
	 PURCHASER:

	
	
                       
                                 ,

a                        
                

		
	By:	 	 
	Name:	 	  

	Title:	 	  

	
	Date:             , 2012

 EXHIBIT E 

CONDOMINIUM CONVERSION AGREEMENT 
  

			
	RECORDING REQUESTED BY:	 	
	  
	 	
	  
	 	
	  
	 	
		
	WHEN RECORDED MAIL THIS INSTRUMENT TO:	 	
	  
	 	
	  
	 	
	  
	 	

 SPACE ABOVE THIS LINE FOR RECORDER’S USE 

Creekstone Apartments 

PROHIBITION AGAINST 

CONDOMINIUM CONVERSION AGREEMENT 

THIS PROHIBITION AGAINST CONDOMINIUM CONVERSION AGREEMENT (the “Condominium Agreement”) is made and entered into as of
            , 2012, by and between             (“Purchaser”) and CRP/WF Creekstone, LLC (“Seller”). 

W I T N E S S E T H : 
 WHEREAS,
Seller and Purchaser have entered into that certain Purchase and Sale Agreement dated as of             , 2012 (the “Sale Agreement”) relating to the sale by Seller to Purchaser
of that parcel of real property located in Durham, North Carolina, and more particularly described on Exhibit “A” attached hereto (the “Land”), together with certain apartment buildings and related personal property and other
rights located thereon and relating thereto (the “Improvements” and the Land and the Improvements collectively referred to herein as the “Property”). 

WHEREAS, as a condition to Seller conveying the Property to Purchaser and in consideration of Seller accepting the purchase price and
conveying the Property as set forth in the Sale Agreement to Purchaser, Purchaser has agreed with Seller to execute and record this Condominium Agreement providing for certain restrictions relating to the future use of the Property for a period of
time after the date of this Condominium Agreement as more fully set forth herein. 
 NOW, THEREFORE, in consideration of the mutual
covenants and undertakings set forth herein, and other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, Seller and Purchaser hereby agree as follows: 

Section 1. Definitions and Interpretation. The following terms shall have the respective meanings assigned to them in this Section
I unless the context in which they are used clearly requires otherwise: 
 “Assumption Agreement” – As defined in
Section 2 hereof. 
 “Condominium Conversion” - Shall mean the filing or recording of any document providing for the
conversion of the Property to a form of condominium ownership under any state or local statute or ordinance. 

 “County” - The county in which the Land is located. 

“Deed” - Special Warranty Deed. 

“Event of Default” - As defined in Section 11 hereof. 

“CRP” - As defined in Section 3 hereof. 

“First Mortgage” – As defined in Section 20(a) hereof. 

“First Mortgagee” – As defined in Section 20(a) 0 hereof. 

“Hazardous Materials” or “Hazardous Substances” - Shall mean (i) hazardous wastes, hazardous materials, hazardous
substances, hazardous constituents, toxic substances or related materials, whether solids, liquids or gases, including but not limited to substances defined as “hazardous wastes,” “hazardous materials,” “hazardous
substances,” “toxic substances,” “pollutants,” “contaminants,” “radioactive materials”, “toxic pollutants”, or other similar designations in, or otherwise subject to regulation under, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), 42 U.S.C. § 9601 et seq.; the Toxic Substance Control Act (“TSCA”), 15 U.S.C. § 2601 et seq.; the
Hazardous Materials Transportation Act, 49 U.S.C. § 1802; the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 9601, et seq.; the Clean Water Act (“CWA”), 33 U.S.C. § 1251 et seq.;
the Safe Drinking Water Act, 42 U.S.C. § 300f et seq.; the Clean Air Act (“CAA”), 42 U.S.C. § 7401 et seq.; any Regional Water Quality Control Board; and in any permits, licenses, approvals, plans, rules,
regulations or ordinances adopted, or other criteria and guidelines promulgated pursuant to the preceding laws or other similar federal, state or local laws, regulations, rules or ordinance now or hereafter in effect relating to environmental
matters; and (ii) any other substances, constituents or wastes subject to any applicable federal, state or local law, regulation or ordinance, including any environmental law, now or hereafter in effect, including but not limited to
(A) petroleum, (B) refined petroleum products, (C) waste oil, (D) waste aviation or motor vehicle fuel and their byproducts, (E) asbestos, (F) lead in water, paint or elsewhere,
(G) radon, (H) Polychlorinated Biphenyls (PCB’s), (I) ureaformaldehyde, (J) volatile organic compounds (VOC), (K) total petroleum hydrocarbons (TPH), (L) benzine derivative
(BTEX), (M) petroleum byproducts and (N) methane gas or any of its derivatives. 
 “Improvements” - As
defined in the Recitals hereof. 
 “Indemnified Parties” - As defined in Section 3 hereof. 

“Land” - As defined in the Recitals hereof. 

“Property” - As defined in the Recitals hereof. 

“Property Conditions” - As defined in Section 3 hereof. 

“Related Parties” – Carlyle Realty VI, L.L.C., a Delaware limited liability company, and its successors and assigns. 

“Residential Rental Property” - Shall mean property used for the rental of apartments to the general public under leases providing
for residential use by any occupant of any apartment, including customary ancillary uses in support of such rental of residential apartments which are not prohibited hereunder. 

“Purchaser” - As defined in the Preamble hereof. In the event more than one person and/or entity executes this Condominium Agreement
as Purchaser, each such person and/or entity which comprises Purchaser under this Condominium Agreement shall be jointly and severally liable for all of the obligations, covenants, liabilities and indemnifications of the Purchaser under this
Condominium Agreement. 
 “Seller” - As defined in the Preamble hereof. 

 “Term” - As defined in Section 7 herein. 

“Units” - Shall mean any portion of the Property created in connection with any Condominium Conversion. 

Section 2. Residential Rental Property. The Purchaser hereby acknowledges and agrees that during the Term of this Condominium
Agreement: 
 (a.) The Property shall at all times be used as Residential Rental Property. 

(b.) The Property shall not be subject to any Condominium Conversion and neither shall any portion of the Property be converted to Units for
sale in connection with a Condominium Conversion nor shall the title to any such Units be transferred to any party. 
 (c.) No part of the
Property will at any time be owned or used as a cooperative housing corporation or similar form of ownership. 
 The Purchaser hereby covenants and agrees
to include the requirements and restrictions contained in this Condominium Agreement in any documents transferring any interest (other than a leasehold interest to an individual tenant, customary utility easements, and deed of trust or financing
instrument) in the Property to another person to the end that such transferee had notice of, and is bound by, the requirements and restrictions hereof, and to obtain the agreement from any transferee in the form of Exhibit B attached hereto
(the “Assumption Agreement”) requiring said transferee to abide to all the requirements and restrictions contained in this Condominium Agreement. 

Section 3. Indemnification. In the event any of the provisions of Section 2 hereof are breached, Purchaser agrees to
indemnify, defend and hold harmless the Seller, and each of its members, partners, officers, directors, trustees, affiliates, including but not limited to Carlyle Realty VI, L.L.C. (“CRP”) parents, subsidiaries, shareholders, managers,
beneficiaries, employees and agents (collectively, the “Indemnified Parties”) from any and all demands, claims, including claims for personal injury, property damage or death, legal or administrative proceedings, losses, liabilities,
damages, penalties, fines, liens, judgments, costs or expenses whatsoever, whether in tort, contract or otherwise (including without limitation, court costs and attorneys' fees and disbursements) arising out of, or in any way relating to:
(a) claims made or brought by any party or parties who acquire or contract to acquire any ownership interest in the Property following the date hereof, their agents, employees and successors and assigns in connection with or related to
(i) the physical condition of the Property including, without limitation, latent or patent defects, and claims relating to the existence of asbestos, any other construction defects, claims relating to mold, all structural and seismic elements,
all mechanical, electrical, plumbing, sewage, heating, ventilating, air conditioning and other systems, the environmental condition of the Property and the presence of Hazardous Materials or Hazardous Substances on, under or about the Property, and
(ii) any law or regulation applicable to the Property, including, without limitation, any environmental law and any other federal, state or local law; (the matters described in (i) and (ii) hereof collectively the “Property
Conditions”) and (b) a breach of any of the covenants, terms and conditions of this Condominium Agreement by Purchaser or its successors and assigns. Purchaser and each of its successors and assigns do now and shall at all times consent to
the right of Indemnified Parties to approve and appoint defense counsel and to participate in or assume the defense of any claim. Until any determination is made in any appropriate legal proceeding challenging the obligation of Purchaser herein,
Purchaser’s obligations under all the terms and provisions of this Section shall remain in full force and effect. Purchaser acknowledges that it is a sophisticated and experienced purchaser of real estate and has reviewed with its counsel the
full meaning and affect of the foregoing indemnity. 
 Purchaser’s Initials
             
 Section 4. Consideration. In consideration of
the Seller’s acceptance of the purchase price for the Property from Purchaser, Purchaser has entered into this Condominium Agreement and has agreed to restrict the uses to which the Property can be put on the terms and conditions set forth
herein. 
 Section 5. Sale or Transfer of the Property. The Purchaser hereby covenants and agrees not to sell, transfer or
otherwise dispose of the Property, or any portion thereof (other than for individual tenant use as contemplated hereunder), without obtaining from the Purchaser’s purchaser or transferee the executed Assumption Agreement assuming the
Purchaser’s duties and obligations under this Condominium Agreement and recording same in the real estate records of the County. 

 Section 6. Intentionally Deleted. 

Section 7. Term. This Condominium Agreement and all and several of the terms hereof shall become effective upon its execution and
delivery and shall remain in full force and effect until [insert date which is ten years after closing date], 2022 (the “Term”). Upon the termination of the Term of this Condominium Agreement, this Condominium Agreement shall
automatically expire. 
 Section 8. Covenants to Run With the Land. The Purchaser and Seller hereby subject the Property to the
covenants, reservations and restrictions set forth in this Condominium Agreement. The Purchaser and the Seller hereby declare their express intent that the covenants, reservations and restrictions set forth herein shall be deemed covenants running
with the land and shall pass to and be binding upon the Purchaser’s successors in title to the Property; provided, however, that on the termination of this Condominium Agreement said covenants, reservations and restrictions shall automatically
expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations
and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument. 

Section 9. Burden and Benefit. The Purchaser and Seller hereby declare their understanding and intent that the burden of the
covenants set forth herein touch and concern the Land in that the Purchaser’s legal interest in the Property is rendered less valuable thereby. The Purchaser and Seller hereby further declare their understanding and intent that the benefit of
such covenants touch and concern the Land by enhancing and increasing the enjoyment and use of the Property by persons entitled to rent the apartments contained therein. 

Section 10. Uniformity: Common Plan. The covenants, reservations and restrictions hereof shall apply uniformly to the entire
Property in order to establish and carry out a common plan for the use of the Property. 
 Section 11. Enforcement. If the
Purchaser or any of its successors or assigns defaults in the performance or observance of any covenant, agreement or obligation of the Purchaser and its successors or assigns set forth in this Condominium Agreement, then the Seller or any of the
Indemnified Parties may declare an “Event of Default” to have occurred hereunder, and, at any of said Parties option, it may take any one or more of the following steps: (a) by mandamus or other suit, action or proceeding at law or in
equity, to require the Purchaser and its successors and assigns to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Seller hereunder; or (b) take such other
action at law or in equity as may appear necessary or desirable to enforce the obligations, covenants and agreements of the Purchaser hereunder. All rights and remedies as set forth herein shall be cumulative and non-exclusive to the extent
permitted by law. 
 Section 12. Recording and Filing. The Purchaser shall cause this Condominium Agreement and all amendments
and supplements hereto and thereto, to be recorded and filed in the real property records of the County and in such other places as the Seller may reasonably request. The Purchaser shall pay all fees and charges incurred in connection with any such
recording. 
 Section 13. Attorneys’ Fees. In the event that a party to this Condominium Agreement brings an action against
any other party to this Condominium Agreement by reason of the breach of any condition or covenant, representation or warranty in this Condominium Agreement, or otherwise arising out of this Condominium Agreement, the prevailing party in such action
shall be entitled to recover from the other reasonable attorneys’ fees to be fixed by the court which shall render a judgment, as well as the costs of suit. 

Section 14. Governing Law. This Condominium Agreement shall be governed by the laws of the State of North Carolina. 

Section 15. Amendments. This Condominium Agreement shall be amended only with the express written consent of the Seller, or by any
one (1) of the Related Parties for or on behalf of the Seller, by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County. 

  
 40 

 Section 16. Execution of Termination. Any one (1) of the Related Parties is
authorized and empowered to execute a termination of this Condominium Agreement with the full force and effect as though it had been executed by the Seller. 

Section 17. Notice. Any notice required to be given hereunder shall be made in writing and shall be given by personal delivery,
certified or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as may be specified in writing by the parties hereto: 

 

			
	TO SELLER:	  	 CRP/WF Creekstone, LLC
 a Delaware limited
liability company
 c/o The Carlyle Group
 1001 Pennsylvania
Avenue, NW
 Washington, D.C. 20004-2505
 Attn: Brian Nelsen

Telephone: 202-729-5233
 Email:
brian.nelsen@carlyle.com

		
	and to:	  	 CRP/WF Creekstone, LLC
 a Delaware limited
liability company
 c/o Woodfield Investments
 19583 Saratoga
Springs Place
 Ashburn, VA 20147
 Attn: Greg Bonifield

Telephone: 703-286-7193
 Email:
gbonifield@wfinvest.net

		
	with a copy to:	  	 Mayer Brown LLP
 1999 K Street NW

Washington, DC 20006
 Attn: Keith J. Willner

Telephone: 202-263-3215
 Email:
kwillner@mayerbrown.com

		
	TO PURCHASER:	  	 Trade Street Operating Partnership, LP
 19950 W.
Country Club Drive, Suite 801
 Aventura, Florida 33180
 Attn:
Greg Baumann
 Telephone: (786) 248-6050
 Facsimile: (786)
248-3679
 Email: GBaumann@Trade-Street.com

		
	With a copy to:	  	 Bass, Berry & Sims, PLC
 100 Peabody Place,
Suite 900
 Memphis, Tennessee 38103
 Attn: T. Gaillard
Uhlhorn
 Telephone: (901) 543-5943
 Facsimile: (901)
543-5999
 E-mail: guhlhorn@bassberry.com

 Notice shall be deemed given three business days after the date of mailing, by certified mail, postage prepaid, return receipt
requested, or, if personally delivered, when received. 

 Section 18. Severability. If any provision of this Condominium Agreement shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. 

Section 19. Multiple Counterparts. This Condominium Agreement may be simultaneously executed in multiple counterparts, all of
which shall constitute one and the same instrument, and each of which shall be deemed to be an original. 
 Section 20.
Mortgagee’s Rights. 
 (a) Definitions. For purposes of this Section 20, the following terms shall have the following
meanings: 
 “First Mortgage” shall mean any bona-fide unpaid and outstanding mortgage or deed of trust on the Property or other
instrument creating a security interest against the Property having priority of record over all other recorded liens except those governmental liens and statutory liens which are made superior by statute. 

“First Mortgagee” shall mean the holder of any First Mortgage. 

(b) Transfer of Property to or from First Mortgagee. Notwithstanding the provisions of Section 5 hereof, no sale, transfer, or
other disposition of the Property including, but not limited to, a conveyance pursuant to a deed-in-lieu of foreclosure or the sale of the Property at a foreclosure to (i) a First Mortgagee, (ii) an affiliate of a First Mortgagee,
(iii) a purchaser at a foreclosure sale, and (iv) any transferee of a First Mortgagee or affiliate of a First Mortgagee (collectively a “Foreclosure Purchaser”), shall require the execution and delivery of the Assumption
Agreement by the Foreclosure Purchaser as called for under Section 5 of this Condominium Agreement. Nothing in this paragraph shall be deemed to negate or make unenforceable any other covenant of this Condominium Agreement against said
Foreclosure Purchaser including but not limited to the restrictions contained in Section 2 and said Foreclosure Purchaser by taking title to the Property agrees that it has assumed and shall be bound by said restrictions in Section 2, and
the provisions of Section 5, in connection with any subsequent sale or transfer of the Property, and all other terms and conditions of this Condominium Agreement. Notwithstanding anything herein to the contrary, no Foreclosure Purchaser shall
have any obligations under Section 3 hereof as to any default under this Condominium Agreement arising prior to such Foreclosure Purchaser’s taking title to the Property, other than with respect to a default arising out of the direct
action of such Foreclosure Purchaser, its agents or representatives. 
 (c) No Amendments. No amendment of this Condominium Agreement
shall be effective without the written consent and approval of any First Mortgagee, which shall not be unreasonably withheld, conditioned and/or delayed. 

Section 21. Joint and Several Liability of Purchaser. In the event more than one person and/or entity executes this Condominium
Agreement as Purchaser, each such person and/or entity which comprises Purchaser under this Condominium Agreement shall be jointly and severally liable for all of the obligations, covenants, liabilities and indemnifications of the Purchaser under
this Condominium Agreement. 
 IN WITNESS WHEREOF, the parties hereto have executed the Condominium Agreement as of the day and year first
written above. 
  

			
	SELLER:
	 CRP/WF Creekstone, LLC

a Delaware limited liability company

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

			
	PURCHASER:
	
	
                          
                  ,
 a
                                         
   

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 STATE OF                 ) 

                          
          ) SS. 
 COUNTY OF             ) 

On             , 2012, before me, the undersigned, a Notary Public in and for said
County and State, personally appeared             , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity(ies) upon behalf of which the person(s)
acted including,             , a             , executed the within instrument. 

 

	
	   

	(This area for official notarial seal)

 WITNESS my hand and official seal 

Signature
                                         
            
 STATE OF
                ) 

                          
          ) SS. 
 COUNTY OF             ) 

On             , 2012, before me, the undersigned, a Notary Public in and for said
County and State, personally appeared             , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity(ies) upon behalf of which the person(s)
acted including,             , a             , executed the within instrument. 

 

	
	   

	(This area for official notarial seal)

 WITNESS my hand and official seal 

Signature
                                         
        

 EXHIBIT A 

[Legal Description of Land] 

 EXHIBIT B 
  

 
 space above this line for
recorder’s use 
 ASSIGNMENT AND ASSUMPTION AGREEMENT 

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Agreement”) is made as of this
             day of             ,             , by and between
            (the “Assignor”), and             , a
            (the “Assignee”). This Agreement is hereby deemed to be effective by the parties hereto as of the date of recordation of the Deed transferring title to the Project (as
defined below) from the Assignor to the Assignee (the “Deed Recordation Date”). 
 W I T N E S S E T H : 

WHEREAS, Assignor is a party to that certain Prohibition Against Condominium Conversion Agreement (“Condominium Agreement”) with
CRP/WF Creekstone, LLC (“Seller”) dated as of              2012, and recorded as document number             
encumbering the land and all improvements thereon (the “Project”) as legally described in Exhibit “A” attached hereto; and 

WHEREAS, the Assignee desires to acquire and the Assignor desires to sell, convey, and transfer to the Assignee, the Assignor’s entire
ownership interest in the Project, which sale, conveyance, and transfer requires the assumption by the Assignee of the rights, duties, and obligations of the Assignor under the Condominium Agreement relating to the period from and after the Deed
Recordation Date; and 
 WHEREAS, the Assignee is willing to assume such obligations under the Condominium Agreement. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as
follows: 
 1. Recitals and Definitions. The recitals set forth above are true and accurate and are incorporated herein by reference. All
capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to such terms in the Condominium Agreement. 

2. Assignment and Assumption. The Assignor hereby assigns to the Assignee all of the Assignor’s right, title, duties and obligations
under the Condominium Agreement, and the Assignee hereby accepts and unconditionally assumes in full and agrees to be bound by and perform all of the duties, agreements, indemnities, and obligations of the Assignor under the Condominium Agreement
arising from and after the Deed Recordation Date, which assumption shall be effective upon the Deed Recordation Date. Nothing contained herein shall release Assignor from any obligations arising under the Condominium Agreement. 

3. Representations, Warranties and Covenants. 

A. The Assignor hereby represents, warrants, and covenants that to its knowledge (i) it is not in default under any of the covenants,
representations, or warranties contained in the Condominium Agreement, (ii) it has not received any notice of default relating to the Condominium Agreement. 

 B. The Assignee hereby represents, warrants, and covenants that by its execution of this
Agreement (i) it has unconditionally assumed in full all of the duties, agreements, and obligations of the Assignor under the Condominium Agreement, which assumption shall be effective upon the Deed Recordation Date and (ii) covenants not
to assert against any of the Indemnified Parties defined in the Condominium Agreement, any claims relating to the Property Conditions defined in the Condominium Agreement. 

4. Notice. All correspondence and notices given or required to be given to the Assignor under the Condominium Agreement, from and after the
Deed Recordation Date, shall be provided to the Assignee and shall be addressed as follows: 
  

			
	Assignee:	  	
                          
                  
  

                          
                  
  

 
 Attn:
                                    

 

Telephone:                        
    
  
 Email:
                                  

		
	With a copy to:	  	
                          
                  
  

                          
                  
  

Attn:
                                    

 
 Telephone:
                            
  

Email:
                                    

  

			
	Assignor:	  	
                          
                  
  

                          
                  
  

Attn:                         
           
  
 Telephone:
                            
  

Email:
                                    

		
	With a copy to:	  	
                          
                  
  

                          
                  
  

                          
                  
  

Attn:
                                    

 
 Telephone:
                            
  

Email:
                                    

 5. Severability. If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. 
 6. Joint and Several
Liability of Assignee. In the event more than one person and/or entity executes this Agreement as Assignee, each such person and/or entity which comprises Assignee under this Agreement shall be jointly and severally liable for all of the
obligations, covenants, liabilities and indemnifications of the Assignee under this Agreement and of the Purchaser under the Condominium Agreement. 

7. Successors and Assigns. This Agreement applies to, inures to the benefit of, and binds all parties hereto and their respective successors
and assigns. 
 8. Counterparts. This Agreement may be executed in multiple counterparts, all of which, when taken together, shall be deemed
an original upon execution. 
 [SIGNATURES ON FOLLOWING PAGE] 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above
written. 
  

			
	ASSIGNOR:
	
	
                          
                                         
             ,

a                          
                  

		
	By:	 	  

	Name:	 	  

	 Title:
	 	  

			
	
	ASSIGNEE:
	
	
                          
                                         
             ,

a                          
                  

		
	By:	 	  

	Name:	 	  

	 Title:
	 	  

 STATE OF                 ) 

                          
          ) ss. 
 COUNTY OF             ) 

On             ,
            , before me, the undersigned, a Notary Public in and for said County and State, personally appeared             ,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the within instrument. 

WITNESS my hand and official seal. 

	
	
	   

	Notary Public

 STATE OF                 ) 

                          
          ) ss. 
 COUNTY OF             ) 

On             ,             , before
me, the undersigned, a Notary Public in and for said County and State, personally appeared             , personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the within instrument. 
 WITNESS my hand and official seal. 

	
	
	   

	Notary Public

 EXHIBIT A 

[Legal Description of Project] 

 EXHIBIT F 

PLANS AND SPECIFICATIONS 

[See Attached] 

 EXHIBIT G 

TANGIBLE PERSONAL PROPERTY 

[See Attached] 

 EXHIBIT H 

SERVICE CONTRACTS 

 SCHEDULE 4.6(b) 

PUNCHLIST HOLDBACK AGREEMENT 

This Punchlist Holdback Escrow Agreement (this “Agreement”) is made as of
            , 2012 by and among CRP/WF CREEKSTONE, LLC, a Delaware limited liability company (“Seller”), and
                    , a             (“Purchaser”) and
                    (“Escrow Agent”). 

R E C I T A L S 
 A.
Seller and Purchaser have heretofore entered into that certain Purchase and Sale Agreement of dated as of September     , 2012 (the “Purchase Agreement”) pertaining to the Property (as defined in the
Purchase Agreement); 
 B. As of the date hereof, Seller has yet to complete the Punch List Work. Seller has listed the outstanding Punch
List Items (as defined in the Purchase Agreement) on Exhibit A attached hereto which is hereby made a part hereof (the “Remaining Punch List Items”). The parties have estimated the sum of
$            to be the amount necessary to complete the Remaining Punch List Items (the “Estimated Cost”). Pursuant to Section 4.7 of the Purchase Agreement,
Seller agreed to deposit in an escrow account an amount equal to the Estimated Cost (“Punchlist Holdback”) to secure Seller’s obligation to complete the Remaining Punch List Items; and 

C. All terms capitalized but not defined herein, shall have the respective meanings given to them in the Purchase Agreement. 

NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged the parties hereto agree as
follows: 
 1. Recitals. The recitals set forth above are true and correct and are incorporated herein by reference. 

2. Escrow Funds. At Closing, Seller shall deposit in escrow with the Escrow Agent the amount of
$[            ] (the “Escrow Funds”) as the Punchlist Holdback, the receipt of which is hereby acknowledged by the Escrow Agent. Subject to the terms hereof, Escrow Agent
shall receive, hold in escrow, invest and release or disburse the Escrow Funds as hereinafter provided. 
 3. Investment and Use of Escrow
Funds. As soon as the Escrow Funds becomes available to Escrow Agent for investment, the Escrow Agent shall deposit the Escrow Funds in escrow in a federally insured interest bearing depository account with a financial institution reasonably
approved by Seller and Purchaser (the “Escrow Account”). Escrow Agent shall hold amounts on deposit in the Escrow Account as agent for Seller and shall not commingle such amounts with any other amounts held by Escrow Agent on behalf
of any other person or entity. The Escrow Account shall be in the name of Seller and shall be under the sole dominion and control of Seller, subject to the terms of this Agreement. All interest accruing on the Escrow Funds shall be deemed to be the
interest of Seller and shall be added to and become a part of the Escrow Funds, to be held and disbursed as provided herein. Seller shall provide Escrow Agent with tax identification numbers and other information reasonably required by Escrow Agent
in order for the Escrow Agent to comply with reporting obligations. Seller hereby waives all right of withdrawal from the Escrow Account and any other right to direct disposition of the funds in the Escrow Account, except as expressly provided for
herein. 
 4. Performance of Work. Seller covenants and agrees that it shall proceed diligently, at Seller’s sole cost and
expense, to complete the Remaining Punch List Items within one hundred twenty (120) days from the date hereof, subject to extension for delays caused by Force Majeure, and subject to extension as provided hereinbelow (the “Completion
Date”). Seller shall cause the Remaining Punch List Items to be completed in a good and workmanlike manner. All Punch List Work performed by Seller hereunder shall be constructed, installed or completed, as applicable, free and clear of
mechanic’s, materialmen’s or other liens. In connection with the foregoing, Purchaser hereby grants Seller and its contractors and their subcontractors access to the Property for the purpose of completing the Remaining Punch List Items at
such times as are determined by Purchaser in its reasonable discretion. 

 As used herein, the term “Force Majeure” shall mean acts of God (such as tornado,
flood, hurricane, etc.), fires and other casualties; strikes, lockouts or other labor disturbances; riots, insurrections or civil commotions; embargos, shortages or unavailability of materials, supplies, labor, equipment and systems; sabotage;
vandalism; legal requirements enacted after the date of this Escrow Agreement; orders or judgments; and delays caused by governmental authorities. 

Seller shall be entitled to receive a disbursement of that portion of the Escrow Funds attributable to a particular Remaining Punch List Item
(as shown on Exhibit A) upon completion of such Remaining Punch List Item. At such time as Seller reasonably determines that a particular Remaining Punch List Item has been completed, Seller shall notify Purchaser and Escrow Agent of such
determination and provide lien waivers or other evidence reasonably acceptable to Purchaser that the Property remains free and clear of mechanic’s liens attributable to Seller’s completion of such Remaining Punch List Item. Delivery of
such notice shall constitute Seller’s request for a disbursement of the Escrow Funds attributable to the applicable Remaining Punch List Item. Within three (3) business days after receipt of Seller’s request for release, Escrow Agent
shall disburse the requested amount to Seller, unless Purchaser shall have inspected the particular Remaining Punchlist Item that Seller has notified Purchaser as Seller having completed, Purchaser shall have reasonably determined that it has not
been completed and Purchaser shall have notified Seller and Escrow Agent of same in reasonable detail specifying the nature of the deficiency. Seller shall be entitled to receive a disbursement of the Escrow Funds attributable to the Remaining
Punchlist Item(s) described Seller’s notice that are not the subject of any deficiency as alleged by Purchaser. Seller shall, within three (3) business days after receipt of Purchaser’s notice either (1) elect to correct such
deficiencies, in which event the Completion Date shall be extended for an additional thirty (30) days or (2) reasonably dispute such deficiencies by providing written notice to Purchaser of such dispute, specifying in reasonable detail the
reasons why such deficiencies do not exist. If Seller fails to make a timely election, Seller shall be deemed to have elected to correct such deficiencies pursuant to clause (1) of the immediately preceding sentence. If Seller timely provides a
dispute notice, then Seller and Purchaser shall each meet to resolve such dispute within ten (10) days after Purchaser’s receipt of the dispute notice. If Purchaser and Seller are unable to resolve such dispute within such ten
(10) day period, then such matter shall be submitted to the Project Architect for determination. The judgment of the Project Architect shall be binding on Seller and Purchaser and shall be rendered within ten (10) days of submission of
such matter to the Project Architect and, if work is to be completed, Seller shall diligently complete such work and the Completion Date shall be extended for the later of (i) thirty (30) days, and (ii) the number of days that
transpired during the period beginning on the date Seller’s dispute notice was received by Purchaser and ending on the date the Project Architect rendered its judgment. 

For any Remaining Punch List Items not completed on or before the Completion Date, the remaining Escrow Funds attributable to such Remaining
Punch List Items shall automatically (and without any notice or demand) be disbursed to Purchaser, Seller shall have no further obligations or liabilities under this Agreement and receipt of said funds by Purchaser shall be Purchaser’s sole
remedy (and Purchaser hereby discharges, releases and waives Seller from all claims, obligations and liabilities) with respect to Seller’s failure to complete the Remaining Punch List Items. If Purchaser elects to complete the Remaining Punch
List Items, Seller shall, and only if requested by Purchaser, and to the extent assignable, assign (without representation or warranty) the architect, contractor and other agreements, insofar as they relate to such Remaining Punch List Items only,
to Purchaser. Such assignment shall be in form and substance reasonably acceptable to Purchaser and Seller and shall be accompanied by consents to such assignment from the parties obligated to provide such consents under such agreements. 

5. Indemnification. If, during the course of completing the Punchlist Items, Seller or its agents, employees or contractors damages or
destroys the Property, Seller shall promptly repair the damage caused thereby. Seller shall indemnify, defend and hold Purchaser harmless from any liens arising out of performance of the Punchlist Items by Seller and as well as any claims asserted
by third parties against Purchaser (other than those arising out of Purchaser’s negligence or willful misconduct) to recover for personal injury or property damage as a result of Seller’s entry onto the Property or performance of the
Punchlist Items. Seller’s obligation under this Section shall survive the termination of this Agreement. Upon Purchaser’s request, Seller shall provide evidence of its and its contractor’s liability insurance prior to performing the
Punchlist Items. 

 6. Interpleader. Seller and Purchaser mutually agree that in the event of any controversy
regarding the Escrow Funds, unless mutual written instructions are received by the Escrow Agent directing the Escrow Funds’ disposition, the Escrow Agent shall not take any action, but instead shall await the disposition of any proceeding
relating to the Escrow Funds or, at the Escrow Agent’s option, the Escrow Agent may interplead all parties and deposit the Escrow Funds with a court of competent jurisdiction in which event the Escrow Agent may recover all of its court costs
and reasonable attorneys’ fees. Unless a court decides otherwise, Seller and Purchaser shall be jointly and severally obligated to pay such costs and fees of the Escrow Agent. The court may also assess against the non-prevailing party the
reasonable attorneys’ fees of the prevailing party in accordance with the other provisions of the Purchase Agreement. 
 7. Liability
of Escrow Agent. The parties acknowledge that the Escrow Agent is acting solely as a stakeholder at their request and for their convenience, and that the Escrow Agent shall not be liable to either of the parties for any action or omission on its
part taken or made in good faith, and not in disregard of this Agreement, but shall be liable for its willful misconduct and negligent acts and for any loss, cost or expense incurred by Seller or Purchaser resulting from the Escrow Agent’s
mistake of law respecting the Escrow Agent’s scope or nature of its duties. Seller and Purchaser shall jointly and severally indemnify and hold the Escrow Agent harmless from and against all costs, claims and expenses, including reasonable
attorneys’ fees, incurred in connection with the performance of the Escrow Agent’s duties hereunder, except with respect to actions or omissions taken or made by the Escrow Agent in bad faith, in disregard of this Agreement or involving
willful misconduct or negligence on the part of the Escrow Agent. In the event the Escrow Agent is directed to invest the Escrow Funds, the Escrow Agent shall not be held responsible for any loss of principal or interest which may be incurred as a
result of making the directed investments or redeeming said investments at the direction of the parties hereto. 
 8. Escrow Fee.
Except as expressly provided herein to the contrary, the escrow fee, if any, charged by the Escrow Agent for holding the Escrow Funds and making the disbursements required hereunder shall be paid by Seller. 

9. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an
original, and all of such counterparts shall constitute one Agreement. To facilitate execution of this Agreement, the parties may execute and exchange by telephone facsimile counterparts of the signature pages. 

10. Governing Law. This Agreement shall, in all respects, be governed, construed, applied, and enforced in accordance with the law, as
applicable, of the state in which the Property is located. 
 11. Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the respective legal representatives, successors, assigns, heirs and devisees of the parties. 
 12. Resignation of Escrow
Agent. The Escrow Agent may resign its duties hereunder by giving written notice of its resignation to the Seller and Purchaser at least thirty (30) days prior to the date specified for such resignation to take effect. Upon the effective
date of such resignation, the Escrow Funds shall be delivered by the Escrow Agent to a successor escrow agent designated in writing by the mutual agreement of the Seller and Purchaser or, if there is no such agreement between the parties, then to a
title company selected by Purchaser (the “Successor Escrow Agent”). The Successor Escrow Agent shall evidence its agreement to comply with the obligations of the Escrow Agent herein and thereafter, it shall succeed to all of the
rights and obligations of the Escrow Agent hereunder. 
 13. Limitation on Liability. Seller’s liability under this Agreement
shall be limited to the Escrow Funds and Seller shall have no personal liability under this Agreement except for its interest in the funds in the Escrow Account. 

IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Agreement as of the day and year first set forth above. 

			
	SELLER:
	
	 CRP/WF Creekstone, LLC
 a Delaware
limited liability company

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	PURCHASER:
	
	
                          
                                         
         ,
 a
                                         
                       

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ESCROW AGENT:
	
	
                          
                                         
         ,
 a
                                         
                       

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 SCHEDULE 6.2(e) 

ASSIGNMENT OF CONSTRUCTION CONTRACT 

THIS ASSIGNMENT OF GENERAL CONTRACT (this “Assignment”) is executed as of the
            day of                     , 2012, by
[                    ] (“Assignor”) and C.F. Evans & Co. Construction Services, LLC (the “Contractor”) in favor of
[                    ] (“Assignee”). 

WHEREAS, Assignee is this day purchasing from Assignor and Assignor is conveying to Assignee the Property (as such term is described in that
certain [Name of Purchase Contract] dated [                    ](as amended, the “Contract”)). 

WHEREAS, in connection with the development of the Property, Assignor entered into that certain [Name of GC Contract] dated
[                    ], with the Contractor attached as Exhibit A hereto and made a part hereof (collectively, and together with all Contract
Documents referred to therein, the “General Contract”). 
 WHEREAS, Assignor desires to transfer and assign to Assignee all of
Assignor’s right, title and interest in and to the General Contract, except as provided herein. 
 NOW, THEREFORE, in consideration of
Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  

	 	1.	Assignor hereby transfers and assigns, without recourse, representation or warranty of any nature whatsoever from Assignor, to Assignee all rights, title and interest held by Assignor under the General Contract (except
as provided in Section 2 below), including, without limitation, any existing and future warranty and indemnity rights against the Contractor. 

  

	 	2.	Contractor, by its signature below, hereby authorizes and consents to the transfer and assignment to Assignee of the General Contract pursuant to the terms of this Assignment. Notwithstanding anything herein to the
contrary, Assignee acknowledges and agrees that except as provided below: (i) the assignment of the General Contract shall in no way entitle Assignee to any rebates, refunds, payments or credits that (a) became due and payable by
Contractor to the Owner under the General Contract prior to the date of this Assignment or (b) relate to work performed at the direction of or on behalf of Assignor, and Assignor expressly reserves and retains all rights under the General
Contract relating to any such rebate, refund, payment or credit, and Assignee authorizes such rebates, refunds, payments or credits, as applicable, to be settled and handled exclusively between Contractor and Assignor, except that this provision in
no way precludes or limits Assignee from pursuing or recovering from Contractor any sums owed to Assignee as a result of any warranty, breach of contract or other claim brought by Assignee under the General Contract for damages or defects which
Contractor caused or is responsible for under the General Contract; and (ii) Assignor shall retain a non-exclusive right to pursue and enforce any protections, remedies and rights under the General Contract assigned to Assignee hereunder.

  

	 	3.	Notwithstanding anything herein to the contrary, this Assignment shall in no way permit Assignee to amend or modify the General Contract to increase any duties, liabilities, or obligations of Assignor thereunder.

  

	 	4.	This Assignment may be executed in any number of counterparts, each of which may be executed by any one or more of the parties hereto, but all of which shall constitute one and the same instrument, and shall be binding
and effective when all parties hereto have executed and delivered at least one counterpart. 

  

	 	5.	The General Contract shall remain in full force and effect and shall not otherwise be amended, supplemented or modified by this Assignment. 

	 	6.	Capitalized terms used herein and not otherwise defined in this Assignment shall have the meanings assigned to such terms in the General Contract. 

 

	 	7.	The terms and provisions of this Assignment shall be binding upon and inure to the benefit of the respective parties hereto, and their respective successors and assigns. 

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

 

			
	ASSIGNOR:
	
	[                                    
                                        
]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ASSIGNEE:
	
	[                                    
                                        
]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	Consent and Concurrence:
	
	CONTRACTOR:
	[                                    
                                        
]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 SCHEDULE 8.1(b)

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