Document:

ecol_Ex10_2

		

			EXHIBIT 10.2

		

		
			EXECUTIVE EMPLOYMENT AGREEMENT
		

		
			 
		

		
			This EXECUTIVE EMPLOYMENT AGREEMENT (this “Employment Agreement” or this “Agreement”) is made and entered into effective as of the 23rd day of May, 2017 (the “Effective Date”), by and between US Ecology, Inc., a Delaware corporation (the “Company”), and Andrew Marshall (“Executive”).  The Company and Executive are sometimes collectively referred to herein as the “Parties,” and individually, as a “Party.”
		

		
			 
		

		
			Whereas, the Parties desire to enter into this Agreement, to continue Executive’s employment, on the terms and conditions hereinafter set forth, to reflect, inter alia, Executive’s status as Executive Vice President of Regulatory Compliance and Safety.  
		

		
			 
		

		
			Now, Therefore, in consideration of the premises, the mutual promises, covenants and conditions herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound hereby, agree as follows: 
		

		
			 
		

		
			1.0. Employment.
		

		
			 
		

		
			Section 1.01. Employment. The Company hereby employs Executive, and Executive hereby accepts employment with the Company, all upon the terms and subject to the conditions set forth in this Employment Agreement, effective as of the Effective Date first set forth above.
		

		
			 
		

		
			Section 1.02. Term of Employment. The term of employment of Executive by the Company pursuant to this Employment Agreement shall be for the period commencing on the Effective Date and ending December 31, 2019 (the “Employment Term”), or such earlier date that Executive’s employment is terminated in accordance with the provisions of this Employment Agreement; provided,  however, that the Employment Term shall automatically renew for additional one year periods if neither the Company nor Executive has notified the other in writing of its or his intention not to renew this Employment Agreement on or before 60 days prior to the expiration of the Employment Term (including any renewal(s) thereof).
		

		
			 
		

		
			Section 1.03. Capacity and Duties. Executive is and shall be employed in the capacity of Executive Vice President of Regulatory Compliance and Safety of the Company and its subsidiaries and shall have such other duties, responsibilities and authorities as may be assigned to him from time to time by the President and Chief Executive Officer (“CEO”) or the Board of Directors of the Company (the “Board”), which are not materially inconsistent with Executive’s positions with the Company.  Except as otherwise herein provided, Executive shall devote his entire business time, best efforts and attention to promote and advance the business of the Company and its subsidiaries and to perform diligently and faithfully all the duties, responsibilities and obligations of Executive to be performed by him under this Employment Agreement.  Upon termination of Employee's employment for any reason, unless otherwise requested by the Board, Employee will be deemed to have resigned from the Board (and all other positions held at the Company and its affiliates) voluntarily, without any further action by Employee, as of the end of Employee's employment and Employee, at the Board's request, will execute any documents necessary to reflect his resignation. 
		

		
			 
		

		
			Section 1.04. Place of Employment. Executive’s principal place of work shall be the main corporate office of the Company, currently located in Boise, Idaho; provided,  however, that the location of the Company and any of its offices may be moved from time to time in the discretion of the Board.
		

		
			 
		

		
			Section 1.05. No Other Employment. During the Term, Executive shall not be employed in any other business activity, whether or not such activity is pursued for gain, profit or other pecuniary advantage; provided,  however, that this restriction shall not be construed as preventing Executive from (i) participating in charitable, civic, educational, professional, community or industry affairs; (ii) sitting on one outside board of directors for a public or private company that does not compete with the Company, with the prior concurrence of the Board that the required time commitment with respect to such position is acceptable; and (iii) investing his personal assets in a business which does not compete with the Company or its subsidiaries or with any other company or entity affiliated with the Company, where the form or manner of such investment will not require services on the part of Executive in the operation of the affairs of the business in which such investment is made and in which his participation is solely that 

		 

 

of a passive investor or advisor, so long as the activities in clauses (i), (ii) and (iii), above, do not materially interfere with the performance of Executive’s duties hereunder or create a potential business conflict or the appearance thereof.
		

		
			 
		

		
			Section 1.06. Adherence to Standards. Executive shall comply with the written policies, standards, rules and regulations of the Company from time to time established for all executive officers of the Company consistent with Executive’s position and level of authority.
		

		
			 
		

		
			Section 1.07. Review of Performance. The CEO shall periodically review and evaluate with Executive his performance under this Employment Agreement. 
		

		
			 
		

		
			2.0. Compensation.
		

		
			 
		

		
			During the Employment Term, subject to all the terms and conditions of this Employment Agreement and as compensation for all services to be rendered by Executive hereunder, the Company shall pay to or provide Executive with the following:
		

		
			 
		

		
			Section 2.01. Base Salary. During the Employment Term, the Company shall pay to Executive an annual base salary (“Base Salary”) in an amount not less than Two Hundred Seventy-Five Thousand Dollars and No/100 ($275,000).  Such Base Salary shall be payable in accordance with the regular payroll practices and procedures of the Company.
		

		
			 
		

		
			Section 2.02. Incentive Pay. Executive shall be eligible to participate in any cash incentive or bonus plans of the Company which are in effect for executives from time to time, including the annual cash incentive payment opportunity granted to Executive under the Company’s Management Incentive Plan (“MIP” and together with any other cash incentive or bonus plans of the Company, the “Cash Incentive Plans”), subject to the terms and conditions thereof, at a minimum 60% of Base Salary (“Target Bonus”) at a 100% of MIP target basis, which such MIP target shall be set annually by the Board.  Anything to the contrary in this Agreement notwithstanding, the Company reserves the right to modify or terminate any or all of its Cash Incentive Plans at any time.  In the event of any inconsistency between the terms of this Employment Agreement and the terms of any Cash Incentive Plan, the Cash Incentive Plan shall govern and control.
		

		
			 
		

		
			Section 2.03. Paid Time Off and Other Benefits. Executive shall be entitled to five weeks Paid Time Off (“PTO”) per year, and shall have the right, on the same basis as other members of senior management of the Company, to participate in any and all employee benefit plans and programs of the Company, including medical plans, insurance plans and other benefit plans and programs as shall be, from time to time, in effect for executive employees and senior management personnel of the Company. Such participation shall be subject to the terms of the applicable plan documents, generally applicable Company policies and the discretion of the Board or any administrative or other committee provided for in, or contemplated by, each such plan or program.  Anything to the contrary in this Agreement notwithstanding, the Company reserves the right to modify or terminate such benefit plans and programs at any time.
		

		
			 
		

		
			Section 2.04. Expenses. The Company shall reimburse Executive for all reasonable, ordinary and necessary expenses including, but not limited to, automobile and other business travel and customer and business entertainment expenses incurred by him in connection with his employment in accordance with the Company’s expense reimbursement policy; provided,  however, Executive shall render to the Company a complete and accurate accounting of all such expenses in accordance with the substantiation requirements of the Internal Revenue Code of 1986, as amended (the “Code”).  Executive’s right to reimbursement hereunder may not be liquidated or exchanged for any other benefit, the amount of expenses eligible for reimbursement hereunder in a calendar year shall not affect the amount of expenses eligible for reimbursement hereunder in any other calendar year, and Executive shall be reimbursed for eligible expenses no later than the close of the calendar year following the year in which Executive incurs the applicable expense.
		

		
			 
		

		
			3.0. Omitted
		

		
			 
		

		
			4.0. Termination of Employment.
		

		
			 
		

		
			

		 

		

			 

		

		

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			Section 4.01. Termination of Employment. Executive’s employment and this Employment Agreement may be terminated prior to expiration of the Employment Term as follows (with the date of termination of Executive’s employment hereunder being referred to hereinafter as the “Termination Date”):
		

		
			 
		

		
			(a) By either Party by delivering 60 days’ prior written notice of non-renewal as set forth in the Section 1.02  (Term of Employment);
		

		
			 
		

		
			(b) Upon no less than 30 days’ written notice from the Company to Executive at any time without Cause (as hereinafter defined) and other than due to Executive’s death or Disability, subject to the provisions of Section 5.02  (Termination by the Company Without Cause or by the Executive For Good Reason);
		

		
			 
		

		
			(c) By the Company for Cause (as hereinafter defined) immediately upon written notice stating the basis for such termination;
		

		
			 
		

		
			(d) Due to the death or Disability (as hereinafter defined) of Executive;
		

		
			 
		

		
			(e) By Executive at any time with or without Good Reason (as hereinafter defined) upon 30 days’ written notice from Executive to the Company (or such shorter period) to which the Company may agree; and
		

		
			 
		

		
			(f) Upon the mutual agreement of the Company and Executive.
		

		
			 
		

		
			Section 4.02. Effect of Termination. In the event of termination of Executive’s employment with the Company for any reason, or if Executive is required by the Board, Executive agrees to resign, and shall automatically be deemed to have resigned, from any offices (including any directorship) Executive holds with the Company or any of its subsidiaries effective as of the Termination Date or, if applicable, effective as of a date selected by the Board.
		

		
			 
		

		
			5.0. Payments and Benefits Upon Termination of Employment.
		

		
			 
		

		
			Section 5.01. Termination by the Company For Cause or by the Executive Without Good Reason. If Executive’s employment and this Employment Agreement are terminated by the Company for Cause or by Executive without Good Reason, the Company shall pay Executive the Accrued Obligations (as hereinafter defined) (other than, however, any amounts due under any Cash Incentive Plan which shall be forfeited pursuant to the terms of such plan), in a single, lump-sum payment in accordance with applicable payroll laws but in no event longer than 45 days following such termination. 
		

		
			 
		

		
			Section 5.02. Termination by the Company Without Cause or by the Executive For Good Reason. If Executive’s employment and this Employment Agreement are terminated by the Company without Cause or if Executive terminates his employment and this Employment Agreement for Good Reason, the Company shall pay Executive the Accrued Obligations in a single, lump-sum payment in accordance with applicable payroll laws but in no event longer than 45 days following such termination or, in the case of a Cash Incentive Plan payment, according to the terms of such plan.  In addition, subject to Sections 6.0, 7.0 and 8.0, Executive shall be entitled to receive the following: (i) an amount equal to the sum of two year’s Base Salary and two times Target Bonus (“Severance Payment”) which shall be payable as provided below; (ii) continued vesting of granted stock options and the continued right to exercise such stock options following the Termination Date for the shorter of a period of one year or the original expiration date of such option; (iii) continued vesting of restricted stock and restricted stock unit grants for a period of one year following the Termination Date (in the case of unvested restricted stock or unvested restricted stock units subject to “cliff” vesting, the number of shares or units in which the Executive shall vest shall be calculated based on a period from the start of the vesting period to the first anniversary of the Termination Date, as a percentage of the total vesting period); (iv) continued vesting of performance stock units for a period of one year following the Terminations Date with payment calculated based on a period from the start of the performance period to the Termination Date, as a percentage of the total performance period); and (v) continued medical, hospitalization, life insurance and disability benefits to which Executive was entitled at the Termination Date (any of which shall, to the extent required to avoid subjecting Executive to an additional tax under Section 409A of the Code or as otherwise determined by the Company in its discretion, be structured so as to require that Executive pay the premiums for such 

		 

		

			 

		

		

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benefits on a timely basis, in which case the Company shall reimburse Executive for such premiums in accordance with Section 8.02 so that Executive is made whole on an after-tax basis) for a period of the lesser of 24 months following the Termination Date or the date Executive receives similar or comparable coverage from a new employer; provided, however, that the Company may unilaterally amend the foregoing clause (v) or eliminate the benefit provided thereunder to the extent it deems necessary to avoid the imposition of excise taxes, penalties or similar charges on the Company or any of its subsidiaries or affiliates, including, without limitation, under Code Section 4980D. All such additional payments and benefits under this Section 5.02 shall be conditional on Executive’s timely execution and non-revocation of the Release (as defined in Section 7.0) and Executive’s continued compliance with Section 11.0  (Return of Property), Section 14.0  (Confidentiality), Section 15.0  (Work Product Assignment), and Section 16.0  (Covenant Not to Compete). Payment of the Severance Payment shall be made in bi-weekly installments, in accordance with the regular payroll practices and procedures of the Company commencing on the first regularly scheduled payroll date occurring after Executive's Release becomes effective; provided, however, that if the period during which Executive can consider and revoke the Release begins in one calendar year and ends in the subsequent calendar year, then payment of the Severance Payment shall commence on the later of (a) the first regularly scheduled payroll date occurring after Executive's Release becomes effective, and (b) the first regularly scheduled payroll date occurring in the subsequent calendar year.  The first such payment shall include any installments of the Severance Payment that would have been made on previous payroll dates but for the requirement that Executive execute a Release.  The period, if any, during which Executive and his spouse and children are eligible to continue their coverage under the Company's group health plans pursuant to Section 4980B of the Code ("COBRA") shall run simultaneously with the period specified in clause (iv) (provided that nothing in such clause (iv) shall be deemed to extend such COBRA continuation period beyond the minimum period required by applicable law). For the avoidance of doubt, a termination of employment pursuant to Section 4.01(a) by notice of non-renewal by the Company for any reason other than Cause, shall be deemed a termination of employment by the Company without Cause for purposes of this Section 5.02.
		

		
			 
		

		
			Section 5.03. Termination Due to Death. If Executive’s employment and this Employment Agreement are terminated due to Executive’s death, the Company shall pay the estate of Executive the Accrued Obligations in a single, lump-sum payment within 45 days following such termination or, in the case of a Cash Incentive Plan payment, according to the terms of such plan. 
		

		
			 
		

		
			Section 5.04. Termination Due to Disability. If Executive’s employment and this Employment Agreement are terminated due to his Disability, the Company shall pay Executive the Accrued Obligations in a single, lump-sum payment in accordance with applicable payroll laws but in no event longer than 45 days following such termination or, in the case of a Cash Incentive Plan payment, according to the terms of such plan. In addition, Executive will be eligible to participate in the Company’s Long-Term Disability Plan or any other Disability Plans, on a basis no less favorable to Executive than other senior executives of the Company.
		

		
			 
		

		
			Section 5.05. Retirement. If Executive’s employment and this Employment Agreement are terminated by virtue of Executive’s Retirement prior to the expiration of the Employment Term, the Company shall pay Executive the Accrued Obligations in a single, lump-sum payment in accordance with applicable payroll laws but in no event longer than 45 days following such termination or, in the case of a Cash Incentive Plan payment, according to the terms of such plan.
		

		
			 
		

		
			6.0. Payment and Benefits Upon Change of Control.
		

		
			 
		

		
			Subject to Sections 7.0 and 8.0, upon a Change of Control of the Company (as hereinafter defined) during the Employment Term and subsequent termination from the Company under Section 5.02 within 24 months after such Change of Control (including, for purposes of this Section, a termination for Good Reason), Executive shall receive, in lieu of the Severance Payment, a payment equal to two times the sum of (i) his annual Base Salary; and (ii) the greater of (a) any earned but unpaid amount due under any Cash Incentive Plan (as determined by the terms of the Cash Incentive Plan); and (b) the Executive’s Target Bonus amount; and (c) the Cash Incentive Plan payment received (if any) for the fiscal year immediately preceding the Cash Incentive Plan year in Subsection (ii)(a) herein (collectively, the “Change of Control Payment”).  Such Change of Control Payment shall be paid in a single lump-sum payment in accordance with applicable payroll laws but in no event longer than 45 days after Executive's Release becomes effective; provided, however, that if the period during which Executive can consider and revoke the Release begins in one calendar year and ends in the subsequent calendar year, then the lump sum will be paid in the subsequent 

		 

		

			 

		

		

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calendar year (and in any event by March 15 of such year), regardless of when Executive's Release becomes effective, and even if payment occurs more than 45 days after Executive's Release becomes effective.  However, if a portion of the Change of Control Payment is based on (ii)(a) or (ii)(b) of this Section 6.0, such amount shall be paid according to the terms of the corresponding Cash Incentive Plan.  The Executive shall be entitled to the other benefits set forth in Section 5.02 (other than the Severance Payment), except that all unvested stock options and restricted stock shall become fully vested upon the Termination Date under this Section 6.0;  provided,  however, that if unvested stock options and restricted stock held by the Executive are not continued, substituted for or assumed by the successor company in connection with a Change of Control, such awards shall immediately vest upon the Change of Control. In the event of an inconsistency between this Section 6.0 and Section 5.02, this Section 6.0 shall govern and control.  
		

		
			 
		

		
			7.0. Release.
		

		
			 
		

		
			Executive's entitlement to the payments and benefits described in the second sentence of Section 5.02 and in Section 6.0 is subject to and conditioned upon Executive's timely execution, without subsequent revocation, of a release of claims (in a form satisfactory to the Company) in favor of the Company and its subsidiaries and affiliates (the “Release”); provided,  however, that notwithstanding the foregoing, the Release is not intended to and will not waive the Executive's rights:  (i) to indemnification pursuant to any applicable provision of the Company's Bylaws or Certificate of Incorporation, as amended, pursuant to any written indemnification agreement between the Executive and the Company, or pursuant to applicable law; (ii) to vested benefits or payments specifically to be provided to the Executive under this Agreement or any Company employee benefit plans or policies; or (iii) respecting any claims the Executive may have solely by virtue of the Executive's status as a stockholder of the Company.  The Release also shall not impose any restrictive covenant on the Executive's conduct post-termination that the Executive had not agreed to prior to the Executive's termination in this Agreement or otherwise) or include claims that an employee cannot lawfully release through execution of a general release of claims. 
		

		
			 
		

		
			To be timely, the Release must become effective (i.e., Executive must sign it and any revocation period must expire without Executive revoking the Release) within 60 days, or such shorter period specified in the Release, after Executive's date of termination of employment.  If the Release does not become effective within such time period, then Executive shall not be entitled to such payments and benefits. The Company is obligated to provide Executive the Release within 39 calendar days from Termination Date and Executive shall have a minimum of 21 calendar days to review and comment on the Release.  
		

		
			 
		

		
			8.0. Compliance With Section 409A.
		

		
			 
		

		
			Section 8.01. General. The provisions of this Employment Agreement are intended to comply with the requirements of Section 409A of the Code and any regulations and official guidance promulgated thereunder (“Section 409A”) or an exemption or exclusion therefrom and, with respect to amounts that are subject to Section 409A, shall in all respects be interpreted and administered in accordance with Section 409A. Any payments that qualify for the “short-term deferral” exception or another exception under Section 409A shall be paid under the applicable exception. Each payment of compensation under this Employment Agreement shall be treated as a separate payment of compensation for purposes of Section 409A and a right to a series of installment payments under this Employment Agreement (including pursuant to Section 5.02) shall be treated as a right to a series of separate and distinct payments. All payments to be made upon a termination of employment under this Employment Agreement may only be made upon a “separation from service” under Section 409A. In no event may Executive, directly or indirectly, designate the calendar year of any payment under this Plan.
		

		
			 
		

		
			Section 8.02. In-Kind Benefits and Reimbursements. Notwithstanding anything to the contrary in this Employment Agreement, all reimbursements and in-kind benefits provided hereunder shall be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (a) any reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified herein); (b) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, except, if such benefits consist of the reimbursement of expenses referred to in Section 105(b) of the Code, a maximum, if provided under the terms of the plan providing such medical benefit, may be imposed on the amount of such reimbursements over some or all of the period in which such benefit is to be provided to Executive as described in Treasury Regulation Section 1.409A-3(i)(1)(iv)(B); (c) the reimbursement of an eligible expense will be made no 

		 

		

			 

		

		

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later than the last day of the calendar year following the calendar year in which the expense is incurred, provided that reimbursement shall be made only if Executive has submitted an invoice for such expenses at least 10 days before the end of the calendar year following the calendar year in which such expenses were incurred; and (d) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.
		

		
			 
		

		
			Section 8.03. Delay of Payments. Notwithstanding any other provision of this Employment Agreement to the contrary, if Executive is considered a “specified employee” for purposes of Section 409A (as determined in accordance with the methodology established by the Company as in effect on the date of termination of employment), any payment that constitutes nonqualified deferred compensation within the meaning of Section 409A that is otherwise due to Executive hereunder during the six-month period following Executive’s separation from service (as determined in accordance with Section 409A) on account of Executive’s separation from service shall be accumulated and paid to Executive on the first business day after the date that is six months following Executive’s separation from service (the “Delayed Payment Date”). The Executive shall be entitled to interest (at a per annum rate equal to the highest rate of interest applicable to six-month non-callable certificates of deposit with daily compounding offered by the following institutions: Citibank, N.A., Wells Fargo Bank, N.A. or Bank of America, on the date of such separation from service) on any cash payments so delayed from the scheduled date of payment to the Delayed Payment Date. If Executive dies during the postponement period, the amounts and entitlements delayed on account of Section 409A shall be paid to the personal representative of Executive’s estate on the first to occur of the Delayed Payment Date or 30 days after the date of Executive’s death.
		

		
			 
		

		
			Section 8.04. Cooperation. Executive and the Company agree to work together in good faith to consider amendments to this Employment Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A. 
		

		
			 
		

		
			9.0. Limitation on Payments.
		

		
			 
		

		
			In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 9.0, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under the foregoing clause (i) will be either:
		

		
			 
		

		
			(a) delivered in full; or
		

		
			 
		

		
			(b) delivered as to such lesser extent as would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code,
		

		
			 
		

		
			Whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. If a reduction in severance and other benefits constituting “parachute payments” is necessary so that benefits are delivered to a lesser extent, reduction shall occur in the following order: (i) reduction of cash payments; (ii) cancellation of awards granted “contingent on a change in ownership or control” (within the meaning of Code Section 280G); (iii) cancellation of accelerated vesting of equity awards; and (iv) reduction of employee benefits; provided that the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code. In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Executive’s equity awards. Unless the Company and Executive otherwise agree in writing, any determination required under this Section 9.0 will be made in writing by an independent firm (the “Firm”) immediately prior to Change of Control, whose determination will be conclusive and binding upon the Executive and the Company for all purposes. For purposes of making the calculations required by this Section 9.0, the Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive will furnish to the Firm such information and documents as the Firm may reasonably request in order to make a determination under this Section 9.0. The Company will bear all costs the Firm may reasonably incur in connection with any calculations contemplated by this Section. 
		

		
			 
		

		
			

		 

		

			 

		

		

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			10.0. Definitions.
		

		
			 
		

		
			In addition to the words and terms elsewhere defined in this Employment Agreement, certain capitalized words and terms used herein shall have the meanings given to them by the definitions and descriptions in this Section 10.0, unless the context or use indicates another or different meaning or intent, and such definition shall be equally applicable to both the singular and plural forms of any of the capitalized words and terms herein defined.  The following words and terms are defined terms under this Employment Agreement:
		

		
			 
		

		
			(a)   “Accrued Obligations” shall include (i) any unpaid Base Salary through the Termination Date and any accrued PTO in accordance with the Company’s policy; (ii)  reimbursement for any un-reimbursed business expenses incurred through the Termination Date; and (iii) all other payments, benefits or fringe benefits to which Executive may be entitled under the terms of any applicable compensation arrangement or benefit, equity or fringe benefit plan or program or grant or this Employment Agreement. Accrued Obligations shall also include any cash incentive earned under any Cash Incentive Plan and shall be paid on a pro-rata basis based on days employed during the fiscal year of such plan if any. For the sake of clarity and by way of example only, if the Executive is employed for 270 days of a fiscal year and the management incentive plan in place at the time pays out 100% of target, the Executive would be owed 74% (270/365) of any incentive payments to which he would have been entitled had his employment not been terminated.  Such payments shall be made in accordance with the terms of any Cash Incentive Plan in effect at the time, except that any requirement that the recipient must be an employee at the time of payment shall be waived by the Company under this policy.
		

		
			 
		

		
			(b) A termination for “Cause” shall mean a termination of this Employment Agreement by reason of a determination by two-thirds (2/3) of the members of the Board (excluding, for such purposes, Executive, if Executive is a member of the Board) voting that Executive:
		

		
			 
		

		
			(i) Has engaged in willful neglect (other than neglect resulting from his incapacity due to physical or mental illness) or willful misconduct in the performance of his duties for the Company under this Employment Agreement;
		

		
			 
		

		
			(ii) Has engaged in willful conduct the consequences of which are materially adverse to the Company, monetarily or otherwise;
		

		
			 
		

		
			(iii) Has materially breached the terms of this Employment Agreement, and such breach persisted after notice thereof from the Company and a reasonable opportunity to cure; or
		

		
			 
		

		
			(iv) Has been convicted of (or has plead guilty or no contest to) any felony other than a traffic violation.
		

		
			 
		

		
			(c) A “Change of Control” shall be deemed to have occurred upon:
		

		
			 
		

		
			(i) The consummation of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Company (each, a “Business Combination”), unless, following such Business Combination, all or substantially all of the individuals and entities that were the beneficial owners of the combined voting power of the Company’s outstanding securities immediately prior to such Business Combination beneficially own, directly or indirectly, at least 60% of the combined voting power of the then-outstanding securities of the entity resulting from such Business Combination in substantially the same proportions as their ownership of the combined voting power of the Company’s outstanding securities immediately prior to the Business Combination; provided,  however, that a public offering of the Company’s securities shall not constitute a Business Combination;
		

		
			 
		

		
			(ii) The sale, transfer, or other disposition of all or substantially all of the Company’s assets; or
		

		
			 
		

		
			(iii) Any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 25% of the total voting power represented by the Company’s then outstanding voting securities. For 

		 

		

			 

		

		

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purposes of this subparagraph (iii), the term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act, but shall exclude (x) a trustee or other fiduciary holding securities under an Executive benefit plan of the Company or of a subsidiary and (y) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company.
		

		
			 
		

		
			(iv) A change in the composition of the Board in any two-year period as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (a) are directors of the Company as of the start of the period or (b) are elected, or nominated for election, to the Board with the affirmative votes (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for election as a director without objection to such nomination) of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors of the Company).
		

		
			 
		

		
			(d) “Disability” shall be as defined in the Company’s Long-Term Disability Plan.
		

		
			 
		

		
			(e) “Good Reason” shall mean the occurrence of any of the following without Executive’s prior written consent during the Employment Period, which occurrence continues for 10 days after written notice thereof from Executive to the Board:
		

		
			 
		

		
			(i) Any material diminution or adverse change in Executive’s position, status, title, authorities or responsibilities, office or duties under this Employment Agreement which represents a demotion from such position, status, title, authorities or responsibilities, office or duties which are materially inconsistent with his position, status, title, authorities or responsibilities, office or duties set forth in this Employment Agreement, or any removal of Executive from, or failure to appoint, elect, reappoint or reelect Executive to, any of his positions, except in connection with the termination of his employment with or without Cause, or as a result of his death or Disability.
		

		
			 
		

		
			(ii) The exclusion of Executive in any incentive, bonus or other compensation plan in which Executive participated at the time that this Employment Agreement is executed, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to the failure to continue such plan, or the failure by the Company to continue Executive’s participation therein, or any action by the Company which would directly or indirectly materially reduce his participation therein or reward opportunities thereunder; provided,  however, that Executive continues to meet all eligibility requirements thereof. Notwithstanding the foregoing, this provision shall not apply to the exclusion of Executive in any incentive, bonus or other compensation plan in which Executive participated at the time that this Employment Agreement is executed to the extent that such termination is required by law;
		

		
			 
		

		
			(iii) The failure by the Company to include or continue Executive’s participation in any material employee benefit plan (including any medical, hospitalization, life insurance or disability benefit plan in which Executive participates or in which other Company executives participate), or any material fringe benefit or prerequisite enjoyed by him unless an equitable arrangement (embodied in an ongoing substitute or alternative plan, if applicable) has been made with respect to the failure to include Executive in such plan, or the failure by the Company to continue Executive's participation therein, or any action by the Company which would directly or indirectly materially reduce his participation therein or reward opportunities thereunder, or the failure by the Company to provide him with the benefits to which he is entitled under this Employment Agreement; provided,  however, that Executive continues to meet all eligibility requirements thereof.  Notwithstanding the foregoing, this provision shall not apply to the exclusion of Executive in any Executive benefit plan in which Executive participated at the time that this Employment Agreement is executed to the extent that such termination is required by law, or the failure to continue such plan or benefit is applicable to the Company's executive officers and/or Executives generally; or
		

		
			 
		

		
			(iv) Any material breach by the Company of any provision of this Employment Agreement.
		

		
			

		 

		

			 

		

		

			EXECUTIVE EMPLOYMENT AGREEMENT - 8

		

		

			 

		

 

		

		
			 
		

		
			(v) The movement of main corporate office of the Company beyond a 50 mile radius from Boise, Idaho or beyond a 50 mile radius the Executive’s primary place of employment if not in the corporate office.
		

		
			 
		

		
			Notwithstanding any other provision of this Agreement to the contrary, Executive shall be deemed not to have terminated his employment for Good Reason unless (i) Executive notifies the Board in writing of the condition that Executive believe constitutes Good Reason within 90 days of the initial existence thereof (which notice specifically identifies such condition and the details regarding its existence), (ii) the Company fails to remedy such condition within 10 days after the date on the Board receives such notice (the “Remedial Period”), and (iii) Executive terminates employment with the Company (and its subsidiaries and affiliates) within 60 days after the end of the Remedial Period.  The failure by Executive to include in the notice any fact or circumstance that contributes to a showing of Good Reason shall not waive any right of Executive hereunder or preclude Executive from asserting such fact or circumstance in enforcing his or her rights hereunder.
		

		
			 
		

		
			(f) “Retirement” shall mean retirement upon “normal retirement age” as defined in the Company’s 401(k) retirement plan. 
		

		
			 
		

		
			11.0. Return of Property.  
		

		
			 
		

		
			Executive agrees, upon the termination of his employment with the Company, to return all physical, computerized, electronic or other types of records, documents, proposals, notes, lists, files and any and all other materials, including without limitation, computerized and/or electronic information that refers, relates or otherwise pertains to the Company and/or its subsidiaries, and any and all business dealings of said persons and entities.  In addition, Executive shall return to the Company all property and equipment that Executive has been issued during the course of his employment or which he otherwise currently possesses, including but not limited to, any computers, cellular phones, personal digital assistants, pagers and/or similar items.  Executive shall immediately deliver to the Company any such physical, computerized, electronic or other types of records, documents, proposals, notes, lists, files, materials, property and equipment that are in Executive’s possession.  Executive further agrees that he will immediately forward to the Company any business information regarding the Company and/or its subsidiaries that has been or is inadvertently directed to Executive following his last day of employment with the Company.  The provisions of this Section 11.0 are in addition to any other written agreements on this subject that Executive may have with the Company and/or its subsidiaries, and are not meant to and do not excuse any additional obligations that Executive may have under such agreements.
		

		
			 
		

		
			12.0. Notices.
		

		
			 
		

		
			For the purposes of this Employment Agreement, notices and all other communications provided for hereunder shall be in writing and shall be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, postage prepaid, or by expedited (overnight) courier with established national reputation, shipping prepaid or billed to sender, in either case addressed to the respective addresses last given by each Party to the other (provided that all notices to the Company shall be directed to the attention of the Chief Executive Officer) or to such other address as either Party may have furnished to the other in writing in accordance herewith. All notices and communication shall be deemed to have been received on the date of delivery thereof, or on the second day after deposit thereof with an expedited courier service, except that notice of change of address shall be effective only upon receipt.  Notices shall be addressed as follows:
		

		
			 
		

		
			If to the Company:
		

		
			251E. Front St., Suite 400, Boise, Idaho 83702.
		

		
			 
		

		
			If to the Executive:
		

		
			251 E. Front Street, Suite 400, Boise, Idaho 83706, or
		

		
			 as on file with the Company’s Corporate Secretary
		

		
			 
		

		
			13.0. Life Insurance.
		

		
			 
		

		
			

		 

		

			 

		

		

			EXECUTIVE EMPLOYMENT AGREEMENT - 9

		

		

			 

		

 

		

		
			The Company may, at any time after the execution of this Employment Agreement, apply for and procure as owner and for its own benefit, life insurance on Executive, in such amounts and in such form or forms as the Company may determine.  The Executive shall, at the request of the Company, submit to such medical examinations, supply such information, and execute such documents as may be required by the insurance company or companies to whom the Company has applied for such insurance.  
		

		
			 
		

		
			14.0. Confidentiality.
		

		
			 
		

		
			Executive agrees not to disclose or reveal to any person or entity outside the Company any secret or confidential information concerning any Company product, process, equipment, machinery, design, formula, business, or other activity (collectively, “Confidential Information”) without prior permission of the Company in writing. Confidential Information shall not include any information which is in the public domain or becomes publicly known through no wrongful act on the part of Executive or breach of this Employment Agreement.  Executive acknowledges that the Confidential Information is vital, sensitive, confidential and proprietary to the Company. The obligation to protect the secrecy of such information continues after employment with Company may be terminated.  In furtherance of this agreement, Executive acknowledges that all Confidential Information which Executive now possesses, or shall hereafter acquire, concerning and pertaining to the business and secrets of the Company and all inventions or discoveries made or developed, or suggested by or to Executive during said term of employment relating to Company’s business shall, at all times and for all purposes, be regarded as acquired and held by Executive in his fiduciary capacity and solely for the benefit of Company.
		

		
			 
		

		
			15.0. Work Product Assignment.
		

		
			 
		

		
			Executive agrees that all inventions, innovations, improvements, technical information, systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable) which relate to the actual or anticipated business, research and development or existing or future products or services of the Company or of any of its subsidiaries or affiliates, and which are conceived, developed or made by Executive (whether or not during usual business hours and whether or not alone or in conjunction with any other person) while employed by the Company, together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing (collectively referred to herein as the “Work Product”), belong in all instances to the Company or its subsidiaries or affiliates, as applicable, and Executive hereby assigns to the Company all Work Product and all of his interest therein.  Executive will promptly perform all actions reasonably requested by the Board (whether during or after his employment with the Company) to establish and confirm the ownership of such Work Product (including, without limitation, the execution and delivery of assignments, consents, powers of attorney and other instruments) by the Company or its subsidiaries or affiliates, as applicable, and to provide reasonable assistance to the Company or any of its subsidiaries and affiliates in connection with the prosecution of any applications for patents, trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of interferences relating to any Work Product.
		

		
			 
		

		
			16.0. Covenant Not to Compete.
		

		
			 
		

		
			Section 16.01. Acknowledgment of Executive.  Executive acknowledges that his employment with the Company has special, unique and extraordinary value to the Company; that the Company has a lawful interest in protecting its investment in entrusting its Confidential Information to him; and that the Company would be irreparably damaged if Executive were to provide services to any person or entity in violation of this Employment Agreement because in performing such services Executive would inevitably disclose the Company’s Confidential Information to third parties and that the restrictions, prohibitions and other provision of this Section 16.0 are reasonable, fair and equitable in scope, terms, and duration to protect the legitimate business interests of the Company, and are a material inducement to the Company to enter into this Employment Agreement.
		

		
			 
		

		
			Section 16.02. Non-Competition Covenant. Without the consent in writing of the Board, Executive will not, during the Employment Agreement and for a period of 12 months after such termination of employment (if by the Company for Cause or by Executive without Good Reason), acting alone or in conjunction with others, directly or indirectly engage (either as owner, investor, partner, stockholder, employer, employee, consultant, advisor or director) in activities on behalf of any entity or entities engaged in waste processing and disposal services for low-

		 

		

			 

		

		

			EXECUTIVE EMPLOYMENT AGREEMENT - 10

		

		

			 

		

 

level radioactive-wastes, naturally occurring, accelerator produced, and exempt radioactive materials, and hazardous and PCB wastes. It is agreed that the ownership of not more than five percent (5%) of the equity securities of any company having securities listed on an exchange or regularly traded in the over-the-counter market shall not, of itself, be deemed inconsistent with this Section 16.02.
		

		
			 
		

		
			Section 16.03. Non-Solicitation of Vendors and Customers. Without the consent in writing of the Board, after Executive’s employment has terminated for any reason, Executive will not, during the Employment Agreement and for a period of 18 months thereafter acting alone or in conjunction with others, either directly or indirectly induce any vendors or customers of the Company to curtail or cancel their business with the Company or any of its subsidiaries.
		

		
			 
		

		
			Section 16.04. Non-Solicitation of Employees. Without the consent in writing of the Board, after Executive’s employment has terminated for any reason, Executive will not, during the Employment Agreement and for a period of 24 months thereafter, acting alone or in conjunction with others, either directly or indirectly induce, or attempt to influence, any employee of the Company or any of its subsidiaries to terminate his or her employment. 
		

		
			 
		

		
			17.0. Remedies.
		

		
			 
		

		
			Section 17.01. Specific Performance; Costs of Enforcement. Executive acknowledges that the covenants and agreements, which he has made in this Employment Agreement are reasonable and are required for the reasonable protection of the Company and its business.  Executive agrees that the breach of any covenant or agreement contained herein will result in irreparable injury to the Company and that, in addition to all other remedies provided by law or in equity with respect to the breach of any provision of this Employment Agreement, the Company and its successors and assigns will be entitled to enforce the specific performance by Executive of his obligations hereunder and to enjoin him from engaging in any activity in violation hereof and that no claim by Executive against the Company or its successors or assigns will constitute a defense or bar to the specific enforcement of such obligations.  Executive agrees that the Company and any successor or assign shall be entitled to recover all costs of enforcing any provision of this Employment Agreement, including, without limitation, reasonable attorneys’ fees and costs of litigation.  In the event of a breach by Executive of any covenant or agreement contained herein, the running of the restrictive covenant periods (but not of Executive’s obligations hereunder) shall be tolled during the period of the continuance of any actual breach or violation. 
		

		
			 
		

		
			Section 17.02. Remedy for Breach of Restrictive Covenants. The provisions of Section 14.0  (Confidentiality), Section 15.0  (Work Product Assignment), and Section 16.0  (Covenant Not to Compete) are separate and distinct commitments independent of each of the other Sections. Accordingly, notwithstanding any other provisions of this Employment Agreement, Executive agrees that damages in the event of a breach or a threatened breach by Executive of Section 14.0  (Confidentiality) and Section 16.0  (Covenant Not to Compete) would be difficult if not impossible to ascertain and an inadequate remedy, and it is therefore agreed that the Company, in addition to and without limiting any other remedy or right it may have, shall have the right to an immediate injunction or other equitable relief enjoining any such threatened or actual breach, without any requirement to post bond or provide similar security.  The existence of this right shall not preclude the Company from pursuing any other rights and remedies at law or in equity that the Company may have, including recovery of damages for any breach of such Sections.
		

		
			 
		

		
			Section 17.03.Right to Cancel Payments.
		

		
			 
		

		
			(a) In addition to the remedies set forth above in Sections 17.01 and 17.02, the Company may, at the sole discretion of the Board, cancel, rescind, suspend, withhold or otherwise limit or restrict the Severance Payment under Section 5.02  (Termination by the Company Without Cause or by the Executive For Good Reason) (which excludes any other payments made to Executive under Section 2.0 and under Sections 5.0 and 6.0 above), whether vested or not, at any time if:
		

		
			 
		

		
			(i) Executive is not in compliance with all of the provisions of Section 14.0  (Confidentiality), Section 15.0  (Work Product Assignment) and Section 16.0  (Covenant Not to Compete); and
		

		
			 
		

		
			

		 

		

			 

		

		

			EXECUTIVE EMPLOYMENT AGREEMENT - 11

		

		

			 

		

 

		

		
			(ii) Such non-compliance has been finally determined by binding arbitration pursuant to Section 18.0  (Dispute Resolution).
		

		
			 
		

		
			(b) As a condition to the receipt of any Severance Payment, Executive shall certify to the Company that he is in compliance with the provisions set forth above.
		

		
			 
		

		
			(c) In the event that Executive fails to comply with the provisions set forth in Section 14.0  (Confidentiality), Section 15.0  (Work Product Assignment)  and/or Section 16.0  (Covenant Not to Compete), as finally determined by binding arbitration pursuant to Section 18.0  (Dispute Resolution), prior to or within twelve (12) months after any payment by the Company with respect to any Severance Payment under Section 5.02, such payment may be rescinded by the Company within 12 months thereafter.  In the event of such rescission, Executive shall pay to the Company, within 12 months of the Company’s rescission of one or more Severance Payments, the amount of any such payment(s) received as a result of the rescinded payment(s), without interest, in such further manner and on such further terms and conditions as may be required by the Company; and the Company shall be entitled to set-off against the amount of such payment any amount owed to Executive by the Company, other than wages.
		

		
			 
		

		
			(d) Executive acknowledges that the foregoing provisions are fair, equitable and reasonable for the protection of the Company’s interests in a stable workforce and the time and expense the Company has incurred to develop its business and its customer and vendor relationships.
		

		
			 
		

		
			18.0. Dispute Resolution.  
		

		
			 
		

		
			Except as described above in Section 17.02  (Remedy for Breach of Restrictive Covenants):
		

		
			 
		

		
			Section 18.01. Initial Negotiations. Company and Executive agree to resolve all disputes arising out of their employment relationship by the following alternative dispute resolution process: (a) the Company and Executive agree to seek a fair and prompt negotiated resolution; but if this is not possible, (b) all disputes shall be resolved by binding arbitration; provided, however, that during this process, at the request of either Party, made not later than 60 days after the initial arbitration demand, the Parties agree to attempt to resolve any dispute by non-binding, third-party intervention, including either mediation or evaluation or both but without delaying the arbitration hearing date.  BY ENTERING INTO THIS EMPLOYMENT AGREEMENT, BOTH PARTIES GIVE UP THEIR RIGHT TO HAVE THE DISPUTE DECIDED IN COURT BY A JUDGE OR JURY.
		

		
			 
		

		
			Section 18.02. Mandatory Arbitration. Any controversy or claim arising out of or connected with Executive’s employment at the Company, including but not limited to claims for compensation or severance and claims of wrongful termination, age, sex or other discrimination or civil rights shall be decided by arbitration.  In the event the Parties cannot agree on an arbitrator, then the arbitrator shall be selected by the administrator of the American Arbitration Association (“AAA”) office in Salt Lake City, Utah.  The arbitrator shall be an attorney with at least 15 years’ experience in employment law in Idaho.  Boise, Idaho shall be the site of the arbitration. All statutes of limitation, which would otherwise be applicable, shall apply to any arbitration proceeding hereunder.  Any issue about whether a controversy or claim is covered by this Employment Agreement shall be determined by the arbitrator.
		

		
			 
		

		
			Section 18.03. Arbitration Rules.
		

		
			 
		

		
			(a) The arbitration shall be conducted in accordance with this Employment Agreement, using as appropriate the AAA Employment Dispute Resolution Rules in effect on the date hereof.  The arbitrator shall not be bound by the rules of evidence or of civil procedure, but rather may consider such writings and oral presentations as reasonable business people would use in the conduct of their day-to-day affairs, and may require both Parties to submit some or all of their respective cases by written declaration or such other manner of presentation as the arbitrator may determine to be appropriate.  The Parties agree to limit live testimony and cross-examination to the extent necessary to ensure a fair hearing on material issues.
		

		
			 
		

		
			(b) The arbitrator shall take such steps as may be necessary to hold a private hearing within 120 days of the initial request for arbitration and to conclude the hearing within two days; and the arbitrator's written decision shall be made not later than 14 calendar days after the hearing.  The Parties agree that they 

		 

		

			 

		

		

			EXECUTIVE EMPLOYMENT AGREEMENT - 12

		

		

			 

		

 

have included these time limits in order to expedite the proceeding, but they are not jurisdictional, and the arbitrator may for good cause allow reasonable extensions or delays, which shall not affect the validity of the award.  Both written discovery and depositions shall be allowed.  The extent of such discovery will be determined by the Parties and any disagreements concerning the scope and extent of discovery shall be resolved by the arbitrator.  The written decision shall contain a brief statement of the claim(s) determined and the award made on each claim.  In making the decision and award, the arbitrator shall apply applicable substantive law.  The arbitrator may award injunctive relief or any other remedy available from a judge, including consolidation of this arbitration with any other involving common issues of law or fact which may promote judicial economy, and may award attorneys’ fees and costs to the prevailing Party, but shall not have the power to award punitive or exemplary damages.  The Parties specifically state that the agreement to limit damages was agreed to by the Parties after negotiations. 
		

		
			 
		

		
			 
		

		
			19.0. Attorneys’ Fees.
		

		
			 
		

		
			Section 19.01. Prevailing Party Entitled to Attorneys’ Fees.  In any action at law or in equity to enforce any of the provisions or rights under this Employment Agreement, the unsuccessful Party to such litigation, as determined by the arbitrator in accordance with the dispute resolution provisions set forth above, shall pay the successful Party or Parties all costs, expenses and reasonable attorneys’ fees incurred therein by such Party or Parties (including, without limitation, such costs, expenses and fees on appeal), excluding, however, any time spent by Company employees, including in-house legal counsel, and if such successful Party or Parties shall recover judgment in any such action or proceeding, such costs, expenses and attorneys’ fees shall be included as part of such judgment.
		

		
			 
		

		
			Section 19.02. Limitation on Fees. Notwithstanding the foregoing provision, in no event shall the successful Party or Parties be entitled to recover an amount from the unsuccessful Party for costs, expenses and attorneys’ fees that exceeds the unsuccessful Party’s or Parties’ costs, expenses and attorneys’ fees in connection with the action or proceeding.
		

		
			 
		

		
			20.0. Miscellaneous Provisions.
		

		
			 
		

		
			Section 20.01.Prior Employment Agreements. Executive represents and warrants that Executive’s performance of all the terms of this Employment Agreement and as an Executive of the Company does not, and will not, breach any employment agreement, arrangement or understanding or any agreement, arrangement or understanding to keep in confidence proprietary information acquired by Executive in confidence or in trust prior to Executive’s employment by the Company. Executive has not entered into, and shall not enter into, any agreement, arrangement or understanding, either written or oral, which is in conflict with this Employment Agreement or which would be violated by Executive entering into, or carrying out his obligations under, this Employment Agreement.  This Employment Agreement supersedes any former oral agreement and any former written agreement heretofore executed relating generally to the employment of Executive with the Company, including without limitation, the Prior Agreement.
		

		
			 
		

		
			Section 20.02. Assignment; Binding Effect. This Employment Agreement may not be assigned by Executive in whole or in part. Notwithstanding the foregoing, this Employment Agreement shall inure to the benefit of and be enforceable by Executive’s personal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If Executive should die while any amounts would still be payable to him hereunder if he had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Employment Agreement to Executive’s estate.
		

		
			 
		

		
			Section 20.03. Headings. Headings used in this Employment Agreement are for convenience only and shall not be used to interpret or construe its provisions.
		

		
			 
		

		
			Section 20.04. Waiver. No provision of this Employment Agreement may be waived or discharged unless such waiver or discharge is agreed to in writing and signed by the Chairman of the Board. No waiver by either Party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Employment Agreement to be performed by such other Party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
		

		
			

		 

		

			 

		

		

			EXECUTIVE EMPLOYMENT AGREEMENT - 13

		

		

			 

		

 

		

		
			 
		

		
			Section 20.05. Amendments. No amendments or variations of the terms and conditions of this Employment Agreement shall be valid unless the same is in writing and signed by the Parties hereto.
		

		
			 
		

		
			Section 20.06. Severability. The invalidity or unenforceability of any provision of this Employment Agreement, whether in whole or in part, shall not in any way affect the validity and/or enforceability of any other provision contained herein. Any invalid or unenforceable provision shall be deemed severable to the extent of any such invalidity or unenforceability.  It is expressly understood and agreed that while the Company and Executive consider the restrictions contained in this Employment Agreement reasonable for the purpose of preserving for the Company the good will, other proprietary rights and intangible business value of the Company, if a final judicial determination is made by a court having jurisdiction that the time or territory or any other restriction contained in this Employment Agreement is an unreasonable or otherwise unenforceable restriction against Executive, the provisions of such clause shall not be rendered void but shall be deemed amended to apply as to maximum time and territory and to such other extent as such court may judicially determine or indicate to be reasonable.
		

		
			 
		

		
			Section 20.07. Governing Law. This Employment Agreement shall be construed and enforced pursuant to the laws of the State of Idaho.
		

		
			 
		

		
			Section 20.08. Executive Officer Status. Executive acknowledges that he may be deemed to be an “executive officer” of the Company for purposes of the Securities Act of 1933, as amended (the “1933 Act”), and the Securities Exchange Act of 1934, as amended (the “1934 Act”) and, if so, he shall comply in all respects with all the rules and regulations under the 1933 Act and the 1934 Act applicable to him in a timely and non-delinquent manner.  In order to assist the Company in complying with its obligations under the 1933 Act and 1934 Act, Executive shall provide to the Company such information about Executive as the Company shall reasonably request including, but not limited to, information relating to personal history and stockholdings.  Executive shall report to the Secretary of the Company or other designated officer of the Company all changes in beneficial ownership of any shares of the Company’s Common Stock deemed to be beneficially owned by Executive and/or any members of Executive's immediate family.  Executive further agrees to comply with all requirements placed on him by the Sarbanes-Oxley Act of 2002, Public Law 107-204.
		

		
			 
		

		
			Section 20.09. Tax Withholding. To the extent required by law, the Company shall deduct or withhold from any payments under this Employment Agreement all applicable Federal, state or local income taxes, Social Security, FICA, FUTA and other amounts that the Company determines in good faith are required by law to be withheld.
		

		
			 
		

		
			Section 20.10. Counterparts. This Employment Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one document.
		

		
			 
		

		
			Section 20.11. Exhibits. Any Exhibits attached hereto are incorporated herein by reference and are an integral part of this Employment Agreement and are deemed incorporated herein by reference.
		

		
			 
		

		
			Section 20.12. Retention of Counsel. Executive acknowledges that he has had the opportunity to review this Employment Agreement and the transactions contemplated hereby with his own legal counsel.
		

		
			 
		

		
			 
		

		
			[The remainder of this page intentionally left blank]
		

		
			 
		

		
			

		 

		

			 

		

		

			EXECUTIVE EMPLOYMENT AGREEMENT - 14

		

		

			 

		

 

		

			 

		

		

		
			 
		

		
			IN WITNESS WHEREOF, this Executive Employment Agreement has been duly executed by the Company and Executive as of the date first above written.
		

		
			 
		

		
			EXECUTIVE:
		

		
			 
		

		
			 
		

		
			/s/Andrew Marshall
		

		
			Andrew Marshall
		

		
			 
		

		
			 
		

		
			COMPANY:
		

		
			 
		

		
			US Ecology, Inc.
		

		
			 
		

		
			 
		

		
			By: /s/Jeffrey R. Feeler
		

		
			Name: Jeffrey R. Feeler
		

		
			Title: President and Chief Executive Officer
		

		
			 
		

		
			 
		

		 

		

			EXECUTIVE EMPLOYMENT AGREEMENT - 15Exhibit
10.1

	 

         

        PURCHASE
        AND SALE AGREEMENT

        BETWEEN

        Verandas
        at Mitylene, LLC,

        a
        Delaware limited liability company

        AS
        SELLER,

        AND

        Inland
        Real Estate Acquisitions, Inc.,

        an
        Illinois corporation

        AS
        PURCHASER

        As
        of May 30, 2017

         

         

 

    1 

     

    

 

Table
of Contents

Page

	Article
    1 PURCHASE AND SALE	6
	1.1   Agreement
    of Purchase and Sale	6
	1.2   Property
    Defined	8
	1.3   Permitted
    Exceptions	8
	1.4   Purchase
    Price	8
	1.5   Payment
    of Purchase Price	8
	1.6   Earnest
    Money	8
	Article
    2 TITLE AND SURVEY	9
	2.1   Title
    Examination; Commitment for Title Insurance	9
	2.2   Survey	9
	2.3   Title
    Objections; Cure of Title Objections	10
	2.4   Conveyance
    of Title	11
	2.5   Pre-Closing
    "Gap" Title/Survey Defects	12
	2.6   Seller's
    Covenant Not to Encumber	12
	Article
    3 INSPECTION	13
	3.1   Right
    of Inspection	13
	3.2   Right
    of Termination	14
	3.3   Intentionally
    Omitted.	15
	3.4   Confidentiality	15
	Article
    4 CLOSING	16
	4.1   Time
    and Place	16
	4.2   Seller's
    Obligations at Closing	16
	4.3   Purchaser's
    Obligations at Closing	18
	4.4   Credits
    and Prorations	19
	4.5   Closing
    Costs	22
	4.6   Conditions
    Precedent to Obligation of Purchaser	22
	4.7   Conditions
    Precedent to Obligation of Seller	23
	4.8   Seller's
    Tax Deferred Exchange	24
	4.9   Purchaser's
    Tax Deferred Exchange	25
	

    2 

     

    

	Article
    5 REPRESENTATIONS, WARRANTIES AND COVENANTS	25
	5.1   Representations
    and Warranties of Seller	25
	5.2   Knowledge
    Defined	28
	5.3   Survival
    of Seller's Representations and Warranties	29
	5.4   Covenants
    of Seller	29
	5.5   Representations
    and Warranties of Purchaser	31
	5.6   Survival
    of Purchaser's Representations and Warranties	33
	5.7   Covenants
    of Purchaser	34
	5.8   Special
    Provisions Concerning Condominium Conversion	35
	Article
    6 DEFAULT	36
	6.1   Default
    by Purchaser	36
	6.2   Default
    by Seller	37
	6.3   Notice
    of Default; Opportunity to Cure	37
	6.4   Recoverable
    Damages	37
	Article
    7 RISK OF LOSS	38
	7.1   Damage	38
	7.2   Definition
    of Major Damage	38
	7.3   Seller's
    Insurance	39
	Article
    8 COMMISSIONS	39
	8.1   Broker's
    Commission	39
	8.2   Survival	39
	Article
    9 DISCLAIMERS AND WAIVERS	40
	9.1   No
    Reliance on Documents	40
	9.2   Disclaimers	40
	9.3   Certain
    Definitions	43
	9.4   Effect
    and Survival of Disclaimers	43
	

    3 

     

    

	Article
    10 ESCROW AGENT	43
	10.1   Investment
    of Earnest Money	43
	10.2   Intentionally
    Omitted	43
	10.3   Payment
    on Demand	44
	10.4   Exculpation
    of Escrow Agent	44
	10.5   Stakeholder	44
	10.6   Interest	44
	10.7   Execution
    by Escrow Agent	45
	Article
    11 MISCELLANEOUS	45
	11.1   Intentionally
    Deleted	45
	11.2   Intentionally
    Deleted	45
	11.3   Assignment	45
	11.4   Notices	45
	11.5   Modifications	47
	11.6   Calculation
    of Time Periods	47
	11.7   Successors
    and Assigns	47
	11.8   Entire
    Agreement	48
	11.9   Further
    Assurances	48
	11.10   Counterparts	48
	11.11   Severability	48
	11.12   Applicable
    Law	48
	11.13   No
    Third Party Beneficiary	48
	11.14   Employees	49
	11.15   Seller's
    Access to Records after Closing	49
	11.16   Schedules	49
	11.17   Captions	50
	11.18   Construction	50
	

    4 

     

    

	11.19   Termination
    of Agreement	50
	11.20   Survival	50
	11.21   Time
    of Essence	50
	11.22   Covenant
    Not to Record	51
	11.23   Limitation
    of Seller's Liability	51
	11.24   JURY
    WAIVER	51
	Article
    12 ADDITIONAL PROPERTIES	51
	12.1   Additional
    PSAs	51
	12.2   Agreements
    Regarding Additional PSAs	51

 

 

 

    5 

     

    

PURCHASE
AND SALE AGREEMENT

THIS
PURCHASE AND SALE AGREEMENT (this "Agreement") is made as of May 30, 2017 (the "Effective Date"),
by and between Verandas at Mitylene, LLC, a Delaware limited liability company ("Seller"), and Inland
Real Estate Acquisitions, Inc., an Illinois corporation ("Purchaser").

Chicago
Title Insurance Company, 10 South LaSalle Street, Suite 3100, Chicago, Illinois 60603, Attn: Nancy Castro (“Escrow Agent”),
through its agent Calloway Title and Escrow, LLC, 4170 Ashford-Dunwoody Road, Suite 285, Atlanta, Georgia 30319, Attn: Amanda
Calloway ("Title Company") is a party to this Agreement for the limited purposes set forth herein.

W I T N E
S S E T H:

Article
1

PURCHASE AND SALE

		1.1	Agreement
                                         of Purchase and Sale. Subject to the terms and conditions hereinafter
                                         set forth, Seller agrees to sell and convey and Purchaser agrees to purchase the following:

(a)               
that certain tract or parcel of land being more particularly described on Schedule 1.1(a), attached hereto and made
a part hereof (the property described in this clause (a) being herein referred to collectively as the "Land");

(b)              
all those rights, easements and appurtenances pertaining to the Land (whether now or hereafter existing), including (i)
all right, title and interest of Seller (if any) in and to any streets, alleys or rights-of-way (whether open, closed or proposed),
within or adjacent to the Land, and (ii) all right, title and interest of Seller with respect to any easements, covenants, agreements,
rights, privileges, tenements, hereditaments and appurtenances that now or hereafter benefit or burden the Land (the property
described in this clause (b) herein referred to collectively as the "Related Rights");

(c)               
the buildings, structures, facilities, installations, fixtures and other improvements of every kind on the Land, including
specifically, without limitation, those certain buildings containing apartment units and related facilities and commonly known
as Verandas at Mitylene Apartments (the property described
in this clause (c) being herein referred to collectively as the "Improvements",
and the Land, the Related Rights and the Improvements being hereinafter sometimes collectively referred to as the "Real
Property");

    6 

     

    

 

(d)              
all of Seller's right, title and interest in, to and under all tangible personal property upon the Land or within the Improvements,
including specifically, without limitation, appliances, equipment, furniture, furnishings, carpeting, draperies and curtains,
tools and supplies, and other items of tangible personal property owned by Seller and used exclusively in connection with the
ownership, use, maintenance or operation of the Land and the Improvements, and including those items of tangible personal property
identified on Schedule 1.1(d), attached hereto and incorporated herein by this reference, but excluding (i) cash and cash
equivalents (except to the extent prorated at Closing (as hereinafter defined)), (ii) any reserves or other deposits funded or
made in connection with any financing encumbering the Property, (iii) computer software and computer files, (iv) any time clock(s),
(v) personal property owned by tenants under the Leases, (vi) any equipment installed by, or in connection with, any telecommunication
or utility provider and which is owned by any party other than Seller (excluding any reversionary interest that Seller may have
therein which shall be assigned to Purchaser to the extent assignable), (vii) any items owned by employees of Seller or any property
manager, (viii) any items leased to Seller, (ix) any digital voice receivers used in connection with recorded music at the Property,
and (x) all brochures, advertising copy, promotional materials, manuals, reports, portfolios, binders, training materials and
other items on which the name "Flournoy" appears (the property described in this clause (d), other than the excluded
items, being herein referred to collectively as the "Tangible Personal Property").

(e)               
all of Seller's right, title and interest as landlord or lessor in, to and under all written agreements listed and described
on Schedule 1.1(e) (the "Rent Roll") attached
hereto and made a part hereof as well as under all similar agreements hereafter executed by Seller in accordance with the terms
of this Agreement, pursuant to which any portion of the Land or Improvements is used or occupied by anyone other than Seller (the
property described in this clause (e) being herein referred to collectively as the "Leases");

(f)               
all of Seller's right, title and interest in, to and under (i) the Designated Service Contracts (as defined in Section
5.7 of this Agreement), (ii) all assignable existing warranties and guaranties issued to or inuring to the benefit of Seller
in connection with the Improvements or the Tangible Personal Property, and (iii) all governmental permits, licenses and approvals,
if any, belonging to or inuring to the benefit of Seller and pertaining to the Real Property or the Tangible Personal Property,
but only to the extent that such permits, licenses and approvals are assignable and only to the extent that such permits, licenses
and approvals relate to the Real Property or the Tangible Personal Property as opposed to other property of Seller or its affiliates;
(iv) resident and tenant files for current residents and tenants as of the Closing Date (as hereinafter defined), (v) architectural
and civil plans and specifications (to the extent in Seller's possession but excluding any right to reproduce, use such plans
or specifications for future development or otherwise restrict Seller or any affiliate of Seller from using such plans for future
development); (vi) other non-confidential and non-proprietary records owned by Seller and used in connection with the operation
of the Real Property or any part thereof, and located 

    7 

     

    

on-site as of the Closing Date; (vii) the right to use the name
"Verandas at Mitylene Apartments" in connection with the Real Property; (viii) all assignable telephone numbers, URLs
and website domain names associated with the Real Property including but not limited to the right, at Purchaser's expense, to
use www.verandasmontgomery.com for a period of one (1) year after the Closing solely for the purpose of forwarding visitors to
Purchaser's website for the Real Property; but excluding any rights in or to the use of the name "Flournoy"; and (ix)
all logos, works of art, graphic designs and all videos and photos owned and used by Seller in connection with the Real Property,
provided that the item listed in this clause (ix) does not use or display the name "Flournoy" (the property described
in this clause (f), other than the excluded items, being sometimes herein referred to collectively as the "Intangible Property").

		1.2	Property
                                         Defined. The Land, the Related Rights, the Improvements, the Tangible
                                         Personal Property, the Leases and the Intangible Property are hereinafter sometimes referred
                                         to collectively as the "Property".

		1.3	Permitted
                                         Exceptions. The Property shall be conveyed, and Purchaser shall accept
                                         the Property, subject to the matters which are, or are deemed to be, Permitted Exceptions
                                         pursuant to Article 2 hereof (herein referred to collectively as the "Permitted
                                         Exceptions").

		1.4	Purchase
                                         Price. Seller is to sell and Purchaser is to purchase the Property for
                                         the total purchase price of Thirty Six Million Four Hundred Fifty One Thousand and
                                         No/100 Dollars ($36,451,000.00) (the "Purchase Price"). 

		1.5	Payment
                                         of Purchase Price. The Purchase Price for the Property shall be paid at
                                         Closing in cash by wire transfer of immediately available federal funds to a bank account
                                         of Escrow Agent designated by Escrow Agent in writing to Purchaser prior to the Closing
                                         ("Escrow Agent's Account"), and, as adjusted by prorations and adjustments
                                         as herein provided, shall be subsequently payable in full at Closing in cash by wire
                                         transfer of immediately available federal funds to a bank account designated by Seller
                                         in writing to Escrow Agent prior to the Closing.

		1.6	Earnest
                                         Money. 

(a)               
Within three (3) business days following the Effective Date, Purchaser shall deposit with Escrow Agent the sum of Six
Hundred Fifty Thousand and No/100s Dollars ($650,000.00) by check or wire transfer of immediately
available funds (the "Earnest Money") in accordance with the wiring instructions
attached hereto as Schedule 1.6(a). The Earnest Money, together with all interest earned thereon, if any, while such earnest
money funds are in escrow (including, without limitation, in Escrow Agent’s Account) shall collectively be referred to herein
as the “Earnest Money.” The Earnest Money shall be held and applied as further
set forth in this Agreement. Upon Closing, the Earnest Money will be applied to the Purchase Price on the Closing Date and paid
to Seller through the escrow process outlined herein, or at Purchaser's election, upon release of the Purchase Price to Seller
on the Closing Date, the Earnest Money shall be returned to Purchaser.

 

    8 

     

    

(b)              
If Purchaser fails to deliver any portion of the Earnest Money to the Escrow Agent within the time period specified above,
Seller shall have the right to terminate this Agreement and upon such termination, Purchaser and Seller shall have no further
rights, or obligations hereunder, except those which expressly survive termination of this Agreement.

(c)               
In any event, if Purchaser is entitled to have the Earnest Money returned to Purchaser pursuant to any provision of this
Agreement, One Hundred and no/100 Dollars ($100.00) of the Earnest Money shall nevertheless be paid to Seller as good and sufficient
consideration for entering into this Agreement. In addition, Seller acknowledges that Purchaser, in evaluating the Property and
performing its due diligence investigation of the Property, will devote internal resources and incur expenses, and that such efforts
and expenses of Purchaser also constitute good, valuable and sufficient consideration for this Agreement.

Article
2

TITLE AND SURVEY

		2.1	Title
                                         Examination; Commitment for Title Insurance. Seller has obtained from
                                         Title Company, at Seller's expense, and delivered to Purchaser the Chicago Title Insurance
                                         Company Title Commitment No. NA01264, and has an effective date of April 25, 2017 (the
                                         "Title Commitment") and covering the Property. 

		2.2	Survey.
                                         Purchaser acknowledges that Seller has delivered to Purchaser that certain existing
                                         as-built survey of the Real Property prepared by Pilgreen Engineering, Inc., dated August
                                         22, 2007 and bearing the seal of Martin Blethen Alabama Land Surveyor License No.14728.
                                         Purchaser has ordered (or will order) an update of said survey and will request that
                                         the update be delivered to Purchaser no later than five (5) days before the Inspection
                                         Date (as defined in Section 3.2 below), which together with said updates or revisions
                                         shall constitute the "Survey" hereunder. For purposes of the Deed to
                                         be delivered to Purchase at the Closing, the legal description of the Property shall
                                         be the legal description attached hereto as Schedule 1.1(a), less and except any right-of-way
                                         or other conveyances previously made by Seller. If, however, the metes and bounds description
                                         drawn from the Survey (or any update thereto) reflects a legal description different
                                         from the legal description attached hereto as Schedule 1.1(a), Seller shall also deliver
                                         a quit claim deed, at Closing, containing the legal description drawn from the Survey
                                         (or update thereto).

    9 

     

    

 

		2.3	Title
                                         Objections; Cure of Title Objections. 

(a)               
Purchaser or its attorneys shall have until that date which is five (5) days after receipt of the updated Survey, but in
no event later than the Inspection Date (also referred to herein as the "Title Objection
Deadline") to notify Seller and its attorneys, in writing, of such objections as Purchaser
may have to the Title Commitment (including the title exception documents referred to therein) or Survey, other than the Permitted
Exceptions described in clauses (a) through (d) of Section 2.4. Subject to Section 2.3(d) hereof, any item contained
in the Title Commitment, any matter shown on the Survey or any document that is of record and properly indexed as of the effective
date of such initial title examination to which Purchaser does not object on or before the Title Objection Deadline shall be deemed
a "Permitted Exception". 

(b)              
In the event Purchaser shall notify Seller of objections to title or to matters shown on a Survey on or before the Title
Objection Deadline, Seller shall have the right, but not the obligation, to cure such objections. On or before the fifth (5th)
day following Seller's receipt of Purchaser's notice of objections, Seller shall notify Purchaser in writing whether Seller elects
to attempt to cure such objections (and Seller's failure to provide such a notice shall be deemed an election by Seller not to
cure any such objection). If Seller elects to attempt to cure, then Seller shall use commercially reasonable efforts to attempt
to remove, satisfy or cure the same. If Seller elects (or is deemed to have elected) not to cure any objections specified in Purchaser's
notice, or if Seller notifies Purchaser of Seller's intent to cure any objection and thereafter Seller fails or is unable to effect
a cure prior to Closing (or any date to which the Closing has been extended), then in either such case Purchaser shall have the
right to elect one, but not both, of the following options, which election must in each case be made within the time period provided
in paragraph (c) below:

		(A)	to
                                         accept a conveyance of the Property subject to the Permitted Exceptions, specifically
                                         including any matter objected to by Purchaser which Seller is unwilling or unable to
                                         cure, and without reduction of the Purchase Price; or 

		(B)	to
                                         terminate this Agreement by sending written notice thereof to Seller, and upon delivery
                                         of such notice of termination, this Agreement shall terminate and the Earnest Money shall
                                         be returned to Purchaser in accordance with Section 1.6 of this Agreement, and
                                         thereafter neither party hereto shall have any further rights, obligations or liabilities
                                         hereunder with respect to the Property, except to the extent that any right, obligation
                                         or liability set forth herein expressly survives termination of this Agreement. 

    10 

     

    

 

(c)               
If Seller notifies Purchaser that Seller does not intend to attempt to cure any title objection, or if Seller is deemed
to have elected not to cure any title objections, or if Seller notifies Purchaser of Seller's intent to cure any objection and
Seller later notifies Purchaser that Seller has failed or will be unable to effect a cure thereof, then in any such case Purchaser
shall, within five (5) days after receiving Seller's notice or the date of Seller's deemed election, as applicable, notify Seller
in writing whether Purchaser shall elect to accept the conveyance under clause (b)(i) above or to terminate this Agreement under
clause (b)(ii) above (with Purchaser's failure to provide such a notice deemed an election by Purchaser to accept conveyance under
clause (b)(i) above).

(d)              
Notwithstanding anything contained herein to the contrary, Seller shall be obligated at Closing to discharge (i) all mortgages
of Seller (regardless of whether Purchaser objects to such mortgage), and (ii) all monetary liens arising by, through or under
Seller. The term "mortgage" as used herein includes any mortgage, deed of trust, deed to secure debt and similar security
instrument securing an indebtedness of Seller and encumbering the Property or any portion thereof; the terms "discharge"
and "discharged" as used herein include compliance with a statutory bonding procedure that has the legal effect of removing
the mortgage or item as a lien on the Property or otherwise allows the mortgage or item to be removed from the title exceptions
in the Title Policy (as defined below).

		2.4	Conveyance
                                         of Title. At Closing, Seller shall convey and transfer the Property to
                                         Purchaser. It shall be a condition to Purchaser's obligation to close this transaction
                                         that title to the Real Property conveyed and transferred to Purchaser shall be such title
                                         to the Real Property as will enable the Title Company to issue to Purchaser an extended
                                         coverage American Land Title Association (ALTA) Form 2006 Owner's Policy of Title Insurance
                                         (the "Title Policy") covering the Real Property, in the full amount
                                         of the Purchase Price, subject to the following matters, which are collectively referred
                                         to in this Agreement as "Permitted Exceptions":

(a)               
the rights of residential tenants, as tenants only, without any right to acquire any portion of the Property, under the
Leases described in the Rent Roll and any new Leases entered into between the Effective Date and Closing and (if required) approved
by Purchaser in accordance with the terms of this Agreement;

(b)              
the lien of all ad valorem real estate taxes and assessments not yet due and payable as of the date of Closing, subject
to adjustment as herein provided;

(c)               
local, state and federal laws, ordinances or governmental regulations, including but not limited to, building, zoning and
land use laws, ordinances and regulations, now or hereafter in effect relating to the Property; 

(d)              
Intentionally Deleted.

    11 

     

    

 

(e)               
additional items, if any, appearing of record or shown on the Survey, except to the extent Seller agrees to cure any such
matters pursuant to Section 2.3 or 2.5 hereof; and

(f)               
additional items, if any, approved by Purchaser pursuant to Section 2.6 hereof.

		2.5	Pre-Closing
                                         "Gap" Title/Survey Defects. Whether or not Purchaser shall have
                                         furnished to Seller any notice of title objections pursuant to the foregoing provisions
                                         of this Agreement, Purchaser may, at or prior to Closing, notify Seller in writing of
                                         any objections to title or survey matters having a material effect on the operation or
                                         value of the Property and first raised by the Title Company or the Surveyor and first
                                         arising between (a) the effective date of the applicable Title Commitment or Survey and
                                         (b) the Closing Date; provided, however, that Purchaser must notify Seller of any such
                                         objections within five (5) business days of Purchaser's first receipt of the updated
                                         Title Commitment, updated survey or other document, whichever first provides notice of
                                         the condition giving rise to any such objection. With respect to any objections to title
                                         or survey matters set forth in such notice, except for objections arising or resulting
                                         from Seller's breach of the covenant contained in Section 2.6 hereof, Seller shall have
                                         the same option to cure and Purchaser shall have the same option to accept title subject
                                         to such matters or to terminate this Agreement as those which apply to any notice of
                                         objections made by Purchaser on or before the Title Objection Deadline. 

		2.6	Seller's
                                         Covenant Not to Encumber. Seller agrees that, between the Effective Date
                                         and the Closing Date, Seller will not sell, assign, rent, convey (absolutely or as security),
                                         grant a security interest in, or otherwise encumber or dispose of, the Property (or any
                                         part thereof or estate therein) in any manner that will survive Closing, except as approved
                                         in writing by Purchaser or as expressly provided in this Agreement. Notwithstanding the
                                         foregoing, Seller shall have the right to (i) continue leasing apartment units in the
                                         Property in the manner described in Section 5.4(b) hereof, (ii) terminate, amend or enter
                                         into service contracts in the manner described in Section 5.4(g) hereof, (iii) use, deplete,
                                         remove or replace items of Tangible Personal Property in the ordinary course of business,
                                         provided any appliances, leasing office and pool furniture, fitness center equipment
                                         and other similar items of equipment or furniture so removed by Seller are promptly replaced
                                         by Seller, at its cost, with items of comparable value and utility, and (iv) modify or
                                         amend the existing loan on the Property. 

    12 

     

    

 

Article
3 

INSPECTION

		3.1	Right
                                         of Inspection. 

(a)               
Beginning on the date of the Access Agreement (as hereinafter defined) and continuing thereafter so long as this Agreement
remains in full force and effect, Purchaser and its agents, representatives, contractors and consultants shall, at Purchaser’s
sole cost and expense and upon twenty-four (24) hours prior telephonic notice to Seller, have the right to make physical inspections
of the Property and to examine at such place or places at the Property, in the offices of the property manager or elsewhere as
the same may be located, any operating files maintained by Seller or its property manager in connection with the leasing, maintenance
and/or management of the Property, including, without limitation, the Leases, lease files, service contracts, bills, invoices,
receipts and other general records relating to the income and expenses of the Property, correspondence, surveys, plans and specifications,
warranties for services and materials provided to the Property and similar materials, but excluding materials not directly related
to the leasing, maintenance, and/or management of the Property such as Seller's internal memoranda, financial projections, insurance
policies, operating budgets, appraisals, accounting and tax records and similar proprietary or confidential information. Seller
shall have the right, but not the obligation, to have one of its representatives accompany Purchaser or its representatives on
each such inspection or examination. To the extent in Seller’s possession, Seller shall provide Purchaser with the items
set forth in Schedule 3.1(a) attached hereto within three (3) business days after the Effective Date. Seller shall reasonably
cooperate with Purchaser in its inspections and examinations of the Property, but Seller shall not be obligated to incur any liability,
undue time commitment or expense in connection therewith.

(b)              
Purchaser’s inspections of the Property shall not damage the Property in any respect, shall not be invasive in any
respect (including, without limitation, soil borings, test pits, groundwater testing, or Phase II or Phase III environmental testing),
and shall be conducted in accordance with standards customarily employed in the industry and in compliance with all governmental
laws, rules and regulations. Following each such entry by the Purchaser Parties with respect to the Inspections, Purchaser shall
promptly restore, or cause to be restored, the Property to its original condition as existed immediately prior to any such Inspections.
Purchaser shall not have the right to submit any samples or other materials to any testing laboratory or similar facility without
obtaining the prior written consent of Seller.

    13 

     

    

 

(c)               
Except with respect to the gross negligence or willful misconduct of Seller, its members, and their respective, members,
affiliates, indirect owners (including trusts and plans), trustees, officers, directors, shareholders, agents and employees Purchaser
shall indemnify, hold harmless and defend Seller, its members, and their respective, members, affiliates, indirect owners (including
trusts and plans), trustees, officers, directors, shareholders, agents and employees from and against any and all claims, demands,
causes of action, liabilities, losses, costs, damages and expenses (including reasonable attorneys' fees and expenses and court
costs incurred in defending any such claim or in enforcing this indemnity) of whatsoever nature (for purposes of this Section
3.1, individually a "Claim" and collectively,
"Claims") that may be incurred by Seller or any other indemnified party and
arising out of or in connection with the acts or omissions of Purchaser and its agents, representatives, contractors and consultants,
or any of them, in connection with the inspections and examinations of the Property, including but not limited to Claims arising
out of or in connection with personal injury or death of persons, loss, destruction or damage to property, or liens or claims
of lien filed against the Property. Notwithstanding the foregoing, Purchaser shall have no liability for pre-existing conditions
discovered by any inspection of the Real Property and not aggravated by Purchaser. This Section 3.1(c) shall survive Closing
or any termination of this Agreement for a period of twenty-four (24) months.

		3.2	Right
                                         of Termination. Seller agrees that in the event Purchaser determines,
                                         in Purchaser's sole and absolute discretion, that it does not wish to acquire the Property
                                         for any reason or no reason, then Purchaser shall have the right to terminate this Agreement
                                         by giving written notice of such termination to Seller on or before thirty (30) days
                                         following the date of that certain Access Agreement, dated May 11, 2017, between Purchaser
                                         and Seller (the "Access Agreement") pursuant to which Purchaser is permitted
                                         access to the Property for performance of its due diligence investigations (said thirtieth
                                         (30th) day being referred to herein as the "Inspection Date").
                                         Upon any such termination of this Agreement pursuant to Purchaser's rights under this
                                         Section 3.2 the Earnest Money shall be promptly returned to Purchaser in accordance with
                                         Section 1.6 hereof, Seller shall be solely responsible for the cost of the survey updates
                                         commissioned by Purchaser under Section 2.2, and Purchaser and Seller shall have no further
                                         rights and obligations hereunder except those which expressly survive termination of
                                         this Agreement. If Purchaser fails to give Seller timely notice of termination on or
                                         before the Inspection Date, then Purchaser shall no longer have the right to terminate
                                         this Agreement under this Section 3.2 and (subject to any contrary provisions of this
                                         Agreement) shall be bound to proceed to Closing and consummate the transaction contemplated
                                         hereby pursuant to the terms of this Agreement, and Purchaser shall be solely responsible
                                         for the cost of the survey updates commissioned by Purchaser under Section 2.2 and as
                                         more particularly provided in Section 4.5 below. Time is of the essence with respect
                                         to the provisions of this Section 3.2. The period commencing on the date of the Access
                                         Agreement, and ending on the Inspection Date, is sometimes referred to herein as the
                                         "Inspection Period."

    14 

     

    

 

3.3             
Intentionally Omitted.

		3.4	Confidentiality.
                                         

(a)               
Purchaser acknowledges that all reports and other information provided to Purchaser (the “Deliveries”)
under this Agreement or separate arrangement with Seller or Broker are for informational purposes only and shall not be construed
as a representation or warranty on the part of Seller or any other party regarding the Property. Notwithstanding any provision
of this Agreement, Purchaser shall not have access to, and Seller shall not be obligated to make available to Purchaser, any confidential,
proprietary or privileged information of Seller related to the Property, such excluded materials to include Seller’s internal
memoranda, financial projections, operating budgets, appraisals, tax returns and similar proprietary, confidential or privileged
information. Notwithstanding anything in the foregoing to the contrary, Seller will make available to Purchaser financial statements,
operating reports and rent rolls used in Seller’s ordinary course of business.

(b)              
The existence and contents of this Agreement, the negotiations of parties with respect to the possible sale and purchase
of the Property and any matters disclosed by any Inspections undertaken by Purchaser and the Purchaser Parties with respect to
the Property and any additional information furnished by Seller to Purchaser from time to time (including, without limitation,
the Deliveries) shall be kept confidential and shall not be disclosed to any third parties without the consent of both parties
hereto, except for any disclosure that may be required by law to be made to any applicable governmental or quasi-governmental
authorities. No advertisement or other publicity concerning this transaction shall be made or disseminated by either party at
any time without the review and approval of both parties hereto. Both parties recognize the need to disclose, and agree to the
disclosure of, certain aspects of this transaction to their respective lenders, investors, accountants, attorneys and other consultants.
Each party agrees to inform their lender, investors, accountants, attorneys and other consultants of the confidentiality of this
transaction and all such other information. Notwithstanding the foregoing of this Section 3.4, either of Seller or Purchaser
(or both) may issue a press release describing the transaction if and when the Property is actually conveyed, provided that any
such press release issued by either party must be reasonably approved in advance by the other party. Additional confidentiality
restrictions may be set forth in a separate confidentiality agreement between Seller and Purchaser (provided such restrictions
are consistent with this Agreement).

(c)               
If this Agreement is terminated, Purchaser shall, within seven (7) days from the date of such termination, return or cause
to be returned to Seller all Deliveries and, if requested by Seller and upon reimbursement of Purchaser's actual costs therefor,
deliver to Seller copies of all third party reports, together with such reliance letters and/or assignments as Seller may reasonably
request. The provisions of this Section 3.4 shall survive the termination of this Agreement for a period of twenty four
(24) months.

    15 

     

    

 

ARTICLE
4

CLOSING

		4.1	Time
                                         and Place. The consummation of the transaction as contemplated hereby
                                         ("Closing") shall be held at the office of Escrow Agent on or before
                                         thirty (30) calendar days after the Inspection Date, via escrow funds and fully executed
                                         documents. At Closing, Seller and Purchaser shall perform the obligations set forth in,
                                         respectively, Section 4.2 and Section 4.3. The Closing may be held at such other place
                                         or such earlier time and date as Seller and Purchaser shall mutually approve in writing.
                                         The date on which the Closing is scheduled to occur hereunder (or, if earlier, the date
                                         on which Closing occurs) is sometimes referred to herein as the "Closing Date".
                                         The parties will endeavor to "pre-close" on the business day prior to the Closing
                                         Date, so as to allow the wire transfers of the Purchase Price to occur at the opening
                                         of business on the Closing Date or as promptly thereafter as practical. Notwithstanding
                                         any provision of this Agreement to the contrary, if Seller's existing mortgagee requires
                                         a prior notification period, or the satisfaction of other conditions precedent, to complete
                                         the repayment of Seller's existing mortgage loan on the Property and release or defeasance
                                         of the Property from the effect of the security instrument(s) currently encumbering the
                                         Property, then Seller shall have the unilateral option to extend the Closing Date up
                                         to thirty (30) days by delivery to Purchaser of not less than ten (10) days' prior written
                                         notice of said requirement; provided that Seller diligently and in good faith pursues
                                         said repayment and release within said thirty (30)-day period.

		4.2	Seller's
                                         Obligations at Closing. At Closing, Seller shall: 

(a)               
deliver to Purchaser a duly executed limited or special warranty deed in the form attached hereto as Schedule 4.2(a)
and by this reference made a part hereof, conveying the Real Property to Purchaser subject to the Permitted Exceptions (the
"Deed");

(b)              
deliver to Purchaser two counterparts of a bill of sale and assignment and assumption of leases and service contracts,
in the form attached hereto as Schedule 4.2(b) and by this reference made a part hereof, duly executed by Seller, pursuant
to which (i) Seller shall convey the Tangible Personal Property and the Intangible Property to Purchaser, and (ii) Seller shall
assign to Purchaser, and Purchaser shall assume from and after the date of Closing, Seller's interest in and to the Leases and
Designated Service Contracts, as amended or supplemented pursuant to this Agreement (the "Bill
of Sale and Assignment");

(c)               
join with Purchaser to execute a notice (the "Tenant Notice")
in the form of Schedule 4.2(c) attached hereto, which Purchaser shall send to each tenant under each of the Leases informing
such tenant of the sale of the Property and of the assignment to Purchaser of Seller's interest in, and obligations under, the
Leases (including, if applicable any security deposits) and directing that all rent and other sums payable after the Closing under
each such Lease shall be paid as set forth in the notice;

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(d)              
deliver to Purchaser a certificate ("Seller's Closing Certificate"),
dated as of the date of Closing and duly executed by Seller, in the form of Schedule 4.2(d) attached hereto, stating that
the representations and warranties of Seller contained in Section 5.1 of this Agreement are true and correct in all material
respects as of the date of Closing (with appropriate modifications to reflect any changes therein or identifying any representation
or warranty which is not, or no longer is, true and correct and explaining the state of facts giving rise to the change). The
inclusion of any change or exception in such certificate shall not prejudice Purchaser's rights under this Agreement with respect
to the subject matter of such change or exception. The Seller's Closing Certificate shall include an updated Rent Roll dated no
earlier than two (2) business days prior to the Closing Date as to which Seller shall make the same representations and warranties,
as of the date of such Rent Roll, as Seller makes under Section 5.1(d) with respect to the Rent Roll attached hereto;

(e)               
deliver to Purchaser such evidence as the Title Company may reasonably require as to the authority of the person or persons
executing documents on behalf of Seller;

(f)               
deliver to Purchaser an affidavit duly executed by Seller stating that Seller is not a "foreign person" as defined
in the Federal Foreign Investment in Real Property Tax Act of 1980 and the 1984 Tax Reform Act;

(g)              
deliver to the Title Company a title insurance affidavit, if required by the Title Company, duly executed by Seller or
a representative of Seller, in form and content reasonably satisfactory to Seller and the Title Company;

(h)              
deliver to Purchaser at the place of Closing or at the Property the Leases together with such leasing and property files
and records which are material in connection with the continued operation, leasing and maintenance of the Property, all to the
extent not previously delivered;

(i)                
deliver to Purchaser possession and occupancy of the Property, subject to the Permitted Exceptions;

(j)                
deliver a closing statement evidencing the transaction contemplated by this Agreement and such additional documents as
shall be reasonably requested by the Title Company or required to consummate the transaction contemplated by this Agreement; provided,
however, that in no event shall Seller be required to indemnify the Title Company, Purchaser, or any other party pursuant to any
such documents, or undertake any other material liability not expressly contemplated in this Agreement, unless Seller elects to
do so in its sole discretion;

(k)              
Seller has complied with the requirements of the bulk transfer provisions of the Uniform Commercial Code in effect in the
state in which the Property is located, if any;

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(l)                
deliver evidence of termination of the existing property management agreement; and

(m)            
if the legal description attached hereto as Schedule 1.1(a) differs from the legal description of the Property drawn
from the Survey, Seller shall at Closing deliver (in addition to the Deed) a quit claim deed conveying the Property pursuant to
the legal description drawn from the Survey, which legal description shall be subject to Seller's approval, which approval shall
not be unreasonably withheld.

		4.3	Purchaser's
                                         Obligations at Closing. At Closing, Purchaser shall: 

(a)               
deliver to Escrow Agent the full amount of the Purchase Price as increased or decreased by prorations and adjustments as
herein provided, prior to 2:00 p.m. (Eastern Standard time) on the Closing Date, in immediately available federal funds wire transferred
to Escrow Agent's Account, and deliver to Escrow Agent instructions to immediately release the full amount of the Purchase Price,
as increased or decreased by prorations and adjustments as herein provided, to Seller;

(b)              
join Seller in execution of all counterparts of the Bill of Sale and Assignment and the Tenant Notice. In connection with
the Tenant Notice, Purchaser shall deliver to each and every tenant of the Property under a Lease thereof a signed statement acknowledging
Purchaser's receipt and responsibility for each tenant's security deposit (to the extent credited or delivered by Seller to Purchaser
at Closing), if any, all in compliance with and to the extent required by the applicable law. The provisions of this sub-section
shall survive Closing;

(c)               
deliver to the Title Company as it may reasonably require as to the authority of the person or persons executing documents
on behalf of Purchaser;

(d)              
deliver to Seller a certificate dated as of the date of Closing and duly executed by Purchaser, (i) reaffirming the provisions
of Article 9 and confirming that such provisions remain and will continue in full force and effect as of and after the
Closing, and (ii) stating that the representations and warranties of Purchaser contained in Section 5.5 of this Agreement
are true and correct in all material respects as of the date of Closing; and

(e)               
deliver a closing statement evidencing the transaction contemplated by this Agreement and such additional documents as
shall be reasonably requested by the Title Company or required to consummate the transaction contemplated by this Agreement, provided,
however, that in no event shall Purchaser be required to indemnify Seller or Title Company or undertake any other material liability
not expressly contemplated in this Agreement, unless Purchaser elects to do so in its sole discretion.

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		4.4	Credits
                                         and Prorations.

(a)               
All income and expenses in connection with the operation of the Property shall be apportioned, as of 11:59 p.m. (Eastern
Standard time) on the day prior to the Closing Date, as if Purchaser were vested with title to the Property during the entire
Closing Date, such that, except as otherwise expressly provided to the contrary in this Agreement, Seller shall have the benefit
of income and the burden of expenses for the day preceding the Closing Date and the Purchaser shall have the benefit of income
and the burden of expenses for the Closing Date and thereafter. Items (1)-(5) below will be prorated at Closing utilizing the
information known at that time. A post-closing "true-up" shall take place within ninety (90) days of the Closing Date
to adjust the prorations of said items (1), (3), (4) and (5), if necessary, and within a reasonable time to adjust the proration
of said item (2), if necessary. Such prorated items shall include, without limitation, the following:

(1)              
rents, if any, based on the amount collected for the current month; provided, however, that if the amount of rent collected
for the current month is actually less than the monthly rents generated by operations at the Property averaged over the immediately
preceding twelve (12) calendar months (the "T-12 Average Monthly Rent"), then the rent amount used in prorating
rents for the month of the Closing shall be the T-12 Average Monthly Rent and not actual rents collected. For purposes of example
only: If (A) the quotient derived by dividing (i) the sum of all monthly rental collections for the immediately preceding twelve
(12) calendar months, by (ii) twelve (12) (said quotient being the T-12 Average Monthly Rent), exceeds (B) the amount of rent
actually collected for the month in which the Closing occurs, then the parties shall use the T-12 Average Monthly Rent as the
rent amount prorated for the month of the Closing. The term "rents" as used in this Agreement includes all payments
due and payable by, or received from, tenants under the Leases other than refundable deposits, application fees, reimbursement
payments, late charges, pet and cleaning charges and termination payments (which refundable deposits shall be treated as set forth
in Section 4.4(b)(1), but such other amounts shall be retained by Seller); 

(2)              
ad valorem taxes and assessments levied against the Property (including personal property taxes on the Tangible Personal
Property), which shall be prorated as set forth in Section 4.4(b)(2) hereof;

(3)              
payments or amounts due under the Designated Service Contracts. To the extent any rebate, concession or commission payable
to Seller under any Designated Service Contract has accrued before Closing but has not been paid to Seller, Seller shall receive
a credit for such accrued amounts at Closing; Seller shall retain any lump sum payments, signing bonus or similar payments received
by Seller before Closing;

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(4)              
any concessions given to any tenants under the Leases that Seller agreed were to be provided or delivered to the tenants
following the Closing Date, including, but not limited to, the amount of any rebates, rental concessions, gift cards, non-monetary
concessions (e.g., televisions bicycles, iPads, etc.), free rent periods, credits or setoffs given to any of the tenants under
the Leases (collectively, the “Concessions”), shall be settled at Closing by Seller giving Purchaser a credit
against the Purchase Price equal to the actual cost to the landlord of such Concessions.

(5)              
gas, electricity, water and other utility charges for which Seller is liable, if any, such charges to be apportioned at
Closing on the basis of the most recent meter reading occurring prior to Closing or the most recent utility bill received by Seller,
as applicable, including, without limitation, water charges not yet due and payable to such utility provider at Closing, but which
amounts are customarily billed directly to Seller and reimbursed by tenants; and

(6)              
any other operating expenses or other items pertaining to the Property which are customarily prorated between a purchaser
and a seller in comparable commercial transactions in the area in which the Property is located.

(b)              
Notwithstanding anything contained in the foregoing provisions:

(1)              
At Closing, (A) Seller shall credit to Purchaser the amount of such unforfeited resident deposits as shown on the Rent
Roll, and (B) Purchaser shall credit to the account of Seller all refundable cash or other deposits posted with utility companies
serving the Property, or, at either party's option, Purchaser shall contract directly with the utility companies and Seller shall
be entitled to receive and retain such refundable cash and deposits; provided that Purchaser and Seller will cooperate so that
utility service to the Property is not interrupted. For the purposes of this Section 4.4(b)(1) the term "unforfeited
resident deposits" means any refundable resident deposits which are held by Seller and which Seller has not applied, and
is not entitled to apply, against delinquent rents, property damage or otherwise in accordance with the applicable Lease. From
and after the Effective Date, Seller will not apply any tenant deposits unless such tenant has already vacated the Property. 

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(2)              
Any ad valorem taxes for the current year paid at or prior to Closing shall be prorated based upon the amounts actually
paid for the current tax year. If all taxes and assessments for the current tax year are not due prior to the Closing Date, then
Seller shall be charged at Closing an amount equal to that portion of such taxes and assessments which relates to the period before
Closing and Purchaser shall pay the taxes and assessments prior to their becoming delinquent. Any such apportionment made with
respect to a tax year for which the tax rate or assessed valuation, or both, have not yet been fixed shall be based upon the tax
rate and/or assessed valuation last fixed. To the extent that the actual taxes and assessments for the current tax year differ
from the amount apportioned at Closing, the parties shall make all necessary adjustments by appropriate payments between themselves
following Closing promptly following the availability of the final tax bills. For avoidance of doubt, any refunds generated from
appeal of ad valorem taxes for year(s) prior to the current year shall remain the property of Seller and paid to Seller by Purchaser,
if and to the extent received by Purchaser.

(3)              
Gas, electricity, water and other utility charges referred to in Section 4.4(a)(4) above which are payable by any
tenant directly to a third party shall not be apportioned hereunder, and Purchaser shall accept title subject to any of such charges
which are unpaid and Purchaser shall look solely to the responsible tenant for the payment of the same. 

(4)              
If Seller shall have paid any gas, electricity, water or other utility charges referred to in Section 4.4(a)(4)
above directly to a third party which are reimbursable by tenants, but shall not have been reimbursed therefor by the time of
Closing, then Purchaser shall credit to Seller an amount equal to all such charges so paid by Seller. 

(5)              
As to gas, electricity and other utility charges referred to in Section 4.4(a)(4) above, Seller may on notice to
Purchaser elect to pay one or more of all of such items accrued to the Closing Date directly to the person or entity entitled
thereto, and to the extent Seller so elects and the utility company agrees to look solely to Seller for payment of any such item
accrued prior to the Closing Date, such item shall not be apportioned hereunder, and Seller's obligation to pay such item with
respect to the period prior to Closing directly in such case shall survive the Closing. 

(6)              
Seller shall pay in full all leasing commissions and locators' and finders' fees, if any, due to leasing or other agents
(pursuant to a contractual arrangement with Seller) for each Lease and Lease renewal entered into by Seller prior to the Closing
Date promptly when due. 

(7)              
The Tangible Personal Property is included in this sale, without further charge. 

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(8)              
Unpaid and delinquent rent collected by Seller and Purchaser after the date of Closing shall be delivered as follows: (a)
if Seller collects any unpaid or delinquent rent for the Property, Seller shall, within fifteen (15) days after the receipt thereof,
deliver to Purchaser any such rent which Purchaser is entitled to hereunder relating to the date of Closing and any period thereafter,
and (b) if Purchaser collects any unpaid or delinquent rent from the Property, Purchaser shall, within fifteen (15) days after
the receipt thereof, deliver to Seller any such rent which Seller is entitled to hereunder relating to the period prior to the
date of Closing. Seller and Purchaser agree that all rent received by Seller or Purchaser after the Closing shall be applied first
to current rentals and then to delinquent rentals, if any, in inverse order of maturity. Purchaser will make a good faith effort
after Closing to collect all rents in the usual course of Purchaser's operation of the Property, but Purchaser will not be obligated
to institute any lawsuit or other collection procedures to collect delinquent rents. Notwithstanding the foregoing, Seller shall
have the sole right to collect rents, if any, which are unpaid or delinquent as of Closing, from tenants who are no longer in
occupancy as of the Closing (and Purchaser shall promptly deliver any such rents to Seller if received by Purchaser after Closing).

(9)              
Seller shall not grant rent concessions (whether monetary or non-monetary) to any tenant without the prior written consent
of Purchaser.

(10)          
The provisions of Sections 4.4(a) and (b) shall survive Closing. 

		4.5	Closing
                                         Costs. Seller shall pay (a) the fees of any counsel representing it in
                                         connection with this transaction, (b) the base premium for the Title Policy in the amount
                                         of the Purchase Price and the simultaneous issue charge for any lender's policy, (c)
                                         the costs of curing all title objections for which Seller is responsible under this Agreement,
                                         (d) the costs of recording all mortgage cancellations; and (e) one-half of any escrow
                                         fees charged by the Escrow Agent. Purchaser shall pay (A) the fees of any counsel representing
                                         Purchaser in connection with this transaction, (B) the fees for recording the Deed, (C)
                                         the premiums for any title insurance endorsements requested by Purchaser or its lender
                                         or title insurance coverage in excess of the Purchase Price, (D) the cost of Purchaser's
                                         inspections of the Property, (E) the cost to update the Survey as provided in Section
                                         2.2 hereof and the cost of any revisions to the Survey necessary to comply with the requirements
                                         of Purchaser's lender, (F) all applicable transfer taxes, documentary stamp taxes and
                                         similar charges relating to transfer of the Property, and (G) one-half of any escrow
                                         fees charged by the Escrow Agent. All other costs and expenses incident to this transaction
                                         and the closing thereof shall be paid by the party incurring same. 

		4.6	Conditions
                                         Precedent to Obligation of Purchaser. The obligation of Purchaser to consummate
                                         the transaction hereunder shall be subject to the fulfillment on or before the date of
                                         Closing (or such earlier time as otherwise required hereby) of all of the following conditions,
                                         any or all of which may be waived by Purchaser in its sole discretion: 

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(a)               
Seller shall have delivered to Escrow Agent all of the items required to be delivered by Seller pursuant to the terms of
Section 4.2 of this Agreement.

(b)              
All of the representations and warranties of Seller contained in this Agreement shall be true and correct in all material
respects as of the date of Closing (with appropriate modifications permitted under this Agreement or not adverse to Purchaser).

(c)               
Seller shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be
performed and observed by Seller as of the date of Closing.

(d)              
The Title Company is ready, willing and able to issue the Title Policy.

In
the event any of the foregoing conditions has not been satisfied by the Closing Date, Purchaser shall have the right to terminate
this Agreement by written notice given to Seller on the Closing Date, whereupon Escrow Agent shall promptly refund the Earnest
Money to Purchaser and the parties shall have no further rights, duties or obligations hereunder, other than those which are expressly
provided herein to survive the termination of this Agreement; provided, however, that if any of the foregoing conditions has not
been satisfied due to a default by Purchaser or Seller hereunder, then Purchaser's and Seller's respective rights, remedies and
obligations shall instead be determined in accordance with Article 6.

		4.7	Conditions
                                         Precedent to Obligation of Seller. The obligation of Seller to consummate
                                         the transaction hereunder shall be subject to the fulfillment on or before the date of
                                         Closing of all of the following conditions, any or all of which may be waived by Seller
                                         in its sole discretion: 

(a)               
Seller shall have received the Purchase Price as adjusted pursuant to and payable in the manner provided for in this Agreement.

(b)              
Purchaser shall have delivered to Escrow Agent all of the items required to be delivered by Purchaser pursuant to the terms
of Section 4.3 of this Agreement.

(c)               
All of the representations and warranties of Purchaser contained in this Agreement shall be true and correct in all material
respects as of the date of Closing (with appropriate modifications permitted under this Agreement).

(d)              
Purchaser shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to
be performed and observed by Purchaser as of the date of Closing.

    23 

     

    

 

(e)               
As of the Closing Date, (i) Seller shall not be in default beyond any applicable notice and/or cure period under any Lease
and/or any material agreement that would be binding on Purchaser or the Property following Closing, and (ii) there shall not be
any threatened (in writing) or pending material litigation against Seller and/or the Property. For purposes of this subsection
(e), the term "material" shall refer to a default under a Lease or material agreement or litigation claim the underlying
basis for which (i) exists on the Closing Date, and (ii) in the aggregate when finally adjudicated against Seller, would result
in liability for the alleged default, breach or claim in excess of One Hundred Thousand Dollars ($100,000), excluding any attorneys'
fees awards, consequential or punitive damages.

In
the event any of the foregoing conditions has not been satisfied by the Closing Date, Seller shall have the right to terminate
this Agreement by written notice given to Purchaser on the Closing Date, whereupon Escrow Agent shall promptly refund the Earnest
Money to Purchaser and the parties shall have no further rights, duties or obligations hereunder, other than those which are expressly
provided herein to survive a termination of this Agreement; provided, however, if any of the foregoing conditions has not been
satisfied due to a default by Purchaser or Seller hereunder, then Purchaser's and Seller's respective rights, remedies and obligations
shall instead be determined in accordance with Article 6.

		4.8	Seller's
                                         Tax Deferred Exchange. Seller may convey the Property as part of a tax
                                         deferred exchange for the benefit of Seller pursuant to Section 1031 of the Internal
                                         Revenue Code. With respect thereto, Seller may assign all of Seller's contract rights
                                         and obligations hereunder to an exchange accommodation titleholder or a qualified intermediary,
                                         as part of, and in furtherance of, such tax deferred exchange. Purchaser agrees to assist
                                         and cooperate in such exchange for the benefit of Seller at no cost, expense or liability
                                         to Purchaser and without reduction or alteration of the rights of Purchaser under this
                                         Agreement and with respect to Seller; and Purchaser further agrees to execute any and
                                         all documents (subject to the reasonable approval of Purchaser's legal counsel) as are
                                         reasonably necessary in connection with such exchange at Seller's sole expense provided
                                         that Purchaser shall not be required to undertake any material liability or obligation
                                         in so doing and provided that such exchange does not extend the Closing Date. As part
                                         of such exchange, Seller shall convey the Property directly to Purchaser and Purchaser
                                         shall not be obligated to acquire or convey any other property as part of such exchange.
                                         Seller shall indemnify, hold harmless and defend Purchaser from and against any and all
                                         claims, demands, causes of action, liabilities, losses, costs, damages and expenses (including
                                         reasonable attorneys' fees and expenses and court costs incurred in defending any such
                                         claim or in enforcing this indemnity) that may be incurred by Purchaser and arising out
                                         of Purchaser's participation in such exchange for the benefit of Seller, which obligation
                                         shall survive the Closing. Notwithstanding the foregoing, should Seller fail to effect
                                         a tax deferred exchange as contemplated in this Section 4.8 for any reason, then the
                                         sale by Seller of the Property shall be consummated in accordance with terms and conditions
                                         of this Agreement just as though the provisions of this Section 4.8 had been omitted
                                         from this Agreement, except that Purchaser shall be reimbursed and indemnified from resulting
                                         costs and expenses as provided in this Section 4.8. Nothing contained in this Section
                                         4.8 shall release Seller of any of its obligations or liabilities under this Agreement,
                                         whether accruing before, at or after Closing, nor shall anything contained in this Section
                                         4.8 impose any liability or obligation on Purchaser with respect to the tax consequences
                                         of this transaction to Seller. 

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		4.9	Purchaser's
                                         Tax Deferred Exchange. Purchaser may acquire the Property as part of a
                                         tax deferred exchange for the benefit of Purchaser pursuant to Section 1031 of the Internal
                                         Revenue Code. With respect thereto, Purchaser may assign all of Purchaser's contract
                                         rights and obligations hereunder to an exchange accommodation titleholder or a qualified
                                         intermediary, as part of, and in furtherance of, such tax deferred exchange. Seller agrees
                                         to assist and cooperate in such exchange for the benefit of Purchaser at no cost, expense
                                         or liability to Seller and without reduction or alteration of the rights of Seller under
                                         this Agreement and with respect to Purchaser; and Seller further agrees to execute any
                                         and all documents (subject to the reasonable approval of Seller's legal counsel) as are
                                         reasonably necessary in connection with such exchange at Purchaser's sole expense provided
                                         that Seller shall not be required to undertake any material liability or obligation in
                                         so doing and provided that such exchange does not extend the Closing Date. As part of
                                         such exchange, Seller shall convey the Property directly to Purchaser and Seller shall
                                         not be obligated to acquire or convey any other property as part of such exchange. Purchaser
                                         shall indemnify, hold harmless and defend Seller from and against any and all claims,
                                         demands, causes of action, liabilities, losses, costs, damages and expenses (including
                                         reasonable attorneys' fees and expenses and court costs incurred in defending any such
                                         claim or in enforcing this indemnity) that may be incurred by Seller and arising out
                                         of Seller's participation in such exchange for the benefit of Purchaser. Notwithstanding
                                         the foregoing, should Purchaser fail to effect a tax deferred exchange as contemplated
                                         in this Section 4.9 for any reason, then the purchase by Purchaser of the Property shall
                                         be consummated in accordance with terms and conditions of this Agreement just as though
                                         the provisions of this Section 4.9 had been omitted from this Agreement, except that
                                         Seller shall be reimbursed and indemnified from resulting costs and expenses as provided
                                         in this Section 4.9. Nothing contained in this Section 4.9 shall release Purchaser of
                                         any of its obligations or liabilities under this Agreement, whether arising before, at
                                         or after Closing, nor shall anything contained in this Section 4.9 impose any liability
                                         or obligation on Seller with respect to the tax consequences of this transaction to Purchaser.
                                         

 

Article
5 

REPRESENTATIONS,
WARRANTIES AND COVENANTS

		5.1	Representations
                                         and Warranties of Seller. The Seller makes the following representations
                                         and warranties to Purchaser as of the Effective Date. Such representations and warranties
                                         are subject to (i) those matters, if any, disclosed in Seller's disclosure statement
                                         attached hereto as Schedule 5.1 and made a part hereof by this reference ("Seller's
                                         Disclosure Statement") and (ii) the Permitted Exceptions. 

(a)               
Organization and Authority. The Seller has been duly organized and is validly existing and in good standing
under the laws of the State of Delaware and is duly qualified to transact business in the State where the Property is located.
Seller has the full right and authority to enter into this Agreement and to transfer the Property pursuant hereto and to consummate
or cause to be consummated the transactions contemplated herein. The person signing this Agreement on behalf of Seller is authorized
to do so. Neither the execution and delivery of this Agreement nor any other

    25 

     

    

 documents executed and delivered, or to be executed
and delivered, by Seller in connection with the transactions described herein, will violate any provision of Seller's organizational
documents or of any agreements, regulations, or laws to or by which Seller is bound. This Agreement has been, and each document
to be executed and delivered by Seller at Closing shall have been as of Closing, duly authorized, executed and delivered by Seller,
is a valid and binding obligation of Seller and is enforceable against Seller in accordance with its terms subject to (i) applicable
bankruptcy, insolvency, reorganization, moratorium, and other laws affecting the rights of creditors generally; and (ii) the exercise
of judicial discretion in accordance with general principles of equity.

(b)              
Consents. Seller has obtained all consents and permissions (if any) related to the transactions herein
contemplated and required under any covenant, agreement, encumbrance, law or regulation by which Seller or the Property is bound.

(c)               
Pending Actions. Except as set forth on Schedule 5.1, Seller has not received written notice of any action,
suit, arbitration, administrative or judicial proceeding, or unsatisfied order or judgment against Seller which pertains directly
to the Property or the transaction contemplated by this Agreement, which in either case, if adversely determined, would have a
material adverse effect on the use, operation, or the value of the Property.

(d)              
Leases and Rent Roll. Seller is the lessor or landlord under the Leases. The Rent Roll attached as Schedule
1.1(e) is, and each rent roll hereafter delivered by Seller to Purchaser shall be the rent roll maintained by Seller and relied
on by Seller for internal administration and accounting purposes, which to Seller's knowledge is accurate in all material respects.
Notwithstanding anything to the contrary contained in this Agreement, Seller does not represent or warrant that any particular
Lease will be in force or effect at Closing or that the tenants under the Leases will have performed their obligations thereunder.
The termination of any Lease prior to Closing by reason of the tenant's default or for any other reason not constituting a default
by Seller under this Agreement shall not affect the obligations of Purchaser under this Agreement in any manner or entitle Purchaser
to an abatement of or credit against the Purchase Price or give rise to any other claim on the part of Purchaser. This representation
shall be applicable to any updated rent roll delivered by Seller to Purchaser as of the date thereon. Except as required to be
paid by Seller prior to Closing, there are no leasing or other commissions due, nor will any become due, in connection with any
Lease, and no understanding or agreement with any party exists as to payment of any leasing commissions or fees regarding future
leases or as to the procuring of tenants.

    26 

     

    

 

(e)               
Condemnation. Seller has not received written notice of any pending condemnation proceedings relating
to the Property.

(f)               
Insurance. Seller has not received prior to the Effective Date any written notice from Seller's current
insurance carrier of any defects or inadequacies in or on the Property or any part or component thereof that would materially
and adversely affect the insurability of the Property or cause any material increase in the premiums for insurance for the Property,
that have not been cured or repaired.

(g)              
Environmental Matters. (i) Seller has received no written notice from any governmental authority asserting
any violation of Environmental Laws (as defined herein) related to the Property which has not been cured or corrected as of the
Effective Date, (ii) other than as disclosed within the environmental reports previously delivered to Purchaser, Seller has not
manufactured, introduced, released or discharged from or onto the Property any Hazardous Materials or any toxic wastes, substances
or materials (including, without limitation, asbestos) in violation of any environmental laws, and Seller has not used the Property
for the generation, treatment, storage, handling or disposal of any Hazardous Materials in violation of any environmental laws,
and (iii) other than the environmental reports previously delivered to Purchaser, Seller has not commissioned any study relating
to the presence or absence of Hazardous Materials (as defined herein) on the Property. The term "Environmental Laws"
includes without limitation the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation,
and Liability Act and other federal laws governing the environment as in effect on the date of this Agreement together with their
implementing regulations as of the date of this Agreement applicable to the Property, and all applicable state, regional, county,
municipal and other local laws, regulations and ordinances that are equivalent or similar to the federal laws recited above or
that purport to regulate hazardous or toxic substances and materials. The term "Hazardous Materials" includes
petroleum (including crude oil or any fraction thereof), mold and any substance, material, waste, pollutant or contaminant listed
or defined as hazardous or toxic under any Environmental Laws, in any case at levels or concentrations requiring monitoring, reporting,
remediation or removal in accordance with Environmental Laws.

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(h)              
Service Contracts. There are no material service, supply, equipment rental or similar agreements (each
a "Service Contract" and collectively "Service Contracts") to which Seller is a party affecting
the Property other than those set forth in Schedule 5.7(b) and to the extent the same are in Seller's possession, those Service
Contracts which have been delivered by Seller to Purchaser are true, correct and complete in all material respects and include
any material amendments or modifications thereto. To Seller's knowledge, Seller is not in default with respect to its obligations
or liabilities under any of the Service Contracts where the failure to cure such default would have a Material Adverse Effect.
"Material Adverse Effect" means, with respect to any fact or circumstance, that such fact or circumstance would
individually or in the aggregate have a material adverse effect on title to the Property or any portion thereof, on Seller's ability
to consummate the transaction contemplated herein, or on the value or operation of the Property.

(i)                
Employees. Seller has no employees which Purchaser shall be obligated to employ following the Closing.

(j)                
Operating Statements. The operating statements for the Property delivered to Purchaser are the operating
statements maintained by Seller and relied on by Seller for internal administration and accounting purposes; provided, however,
that Seller does not and will not represent or warrant that Purchaser will be able to, or should be able to, operate the Property
according to and with similar results as shown in such operating statements.

(k)              
Compliance with Law. Seller has not received written notice from any governmental authority that the
Property is not in material compliance with applicable laws, ordinances and regulations.

(l)                
Soil Conditions. To the knowledge of Seller,
there are no soil conditions existing on or about the Land which could cause instability, susceptibility to landslides or the
need for undershoring or affect the stability and/or integrity of the Land or Improvements.

		5.2	Knowledge
                                         Defined. References to the "knowledge" of Seller shall refer
                                         only to the actual knowledge, without investigation or inquiry, on the Effective Date
                                         of the Designated Representatives (as hereinafter defined) of Seller, and shall not be
                                         construed, by imputation or otherwise, to refer to the knowledge of any property manager
                                         or broker, or to any other officer, agent, manager, representative or employee of Seller
                                         or any affiliate of Seller, or to impose upon such Designated Representatives any duty
                                         to investigate the matter to which such actual knowledge, or the absence thereof, pertains.
                                         As used herein, the term "Designated Representatives" shall refer to
                                         the following persons: (i) Thomas H. Flournoy and (ii) Flournoy Properties' regional
                                         property manager. In no event shall Purchaser have any personal claim against the above-named
                                         individuals as a result of the reference thereto in this Section 5.2 and Purchaser waives
                                         and releases all such claims which Purchaser now has or may later acquire against them
                                         in connection with the transactions contemplated in this Agreement. 

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		5.3	Survival
                                         of Seller's Representations and Warranties. The representations and warranties
                                         of Seller set forth in Section 5.1, as updated by Seller's Closing Certificate, shall
                                         survive Closing for a period of nine (9) months after Closing. Except with respect to
                                         fraudulent misrepresentation for which the Agreement is terminated under Section 6.2,
                                         in which event Section 6.2 shall apply, no claim for a breach of any representation or
                                         warranty of Seller shall be actionable or payable (a) if the breach in question results
                                         from or is based on a condition, state of facts or other matter which was known to Purchaser
                                         prior to Closing, (b) unless the valid claims for all such breaches collectively aggregate
                                         Ten Thousand and No/100 Dollars ($10,000.00) or more, in which event the full amount
                                         of such valid claims shall be actionable, up to but not exceeding the amount of the Cap
                                         (as defined below), and (c) unless written notice containing a description of the specific
                                         nature of such breach shall have been given by Purchaser to Seller prior to the expiration
                                         of said nine (9) month period and an action shall have been commenced by Purchaser against
                                         Seller within eleven (11) months after Closing. In the event of any breach by Seller
                                         of its representations and warranties contained herein which Purchaser first discovers
                                         after Closing and provides timely notice as aforesaid, Seller shall indemnify and hold
                                         Purchaser harmless from and against any and all loss, damage, cost or expense resulting
                                         therefrom up to but not exceeding the Cap. Seller shall not be liable to Purchaser to
                                         the extent Purchaser's claim is or can be satisfied from any insurance policy, Service
                                         Contract or Lease and Purchaser agrees to first seek reimbursement of any claims from
                                         said insurance policy, Service Contract or Lease prior to seeking indemnification from
                                         the Seller. As used herein, the term "Cap" shall mean the total aggregate
                                         amount equal to Three Hundred Fifty Thousand and No/100 Dollars ($350,000.000). In no
                                         event shall Seller's aggregate liability to Purchaser for any and all breaches of any
                                         representation or warranty of Seller in this Agreement or Seller's Closing Certificate
                                         exceed the amount of the Cap, and Purchaser hereby waives and disclaims any right to
                                         damages or compensation for any and all such breaches in excess of the Cap.

		5.4	Covenants
                                         of Seller.Seller hereby covenants with Purchaser, from the Effective Date
                                         until the Closing or earlier termination of this Agreement, as follows:

(a)               
Operation of Property. Seller shall operate and maintain the Property in a manner generally consistent
with the manner in which Seller has operated and maintained the Property prior to the date hereof.

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(b)              
Execution of New Leases and Renewals. Seller shall use reasonable
efforts to negotiate new leases for unrented apartment units in the Improvements and/or Lease renewals for rented apartment units
in the Improvements and shall maintain an advertising and marketing program for apartment units in the Improvements consistent
with Seller's past practices at the Property. Except for amendments or leases entered into pursuant to renewal notices mailed
prior to the execution of this Agreement, unless Purchaser agrees otherwise in writing, any new leases or renewals of existing
leases for such apartment units entered into by Seller after the Effective Date until the Closing or earlier termination of this
Agreement shall be on Seller's standard apartment lease form for the Property, and shall be for terms of no less than six (6)
months and no more than fifteen (15) months. In all cases, Seller shall retain the discretion to set rent rates, concessions and
other terms of occupancy, provided that Seller shall only enter into new leases or renewals in the ordinary course of business
taking into account Seller's then-current good faith evaluation of market conditions. Each such new lease or renewal entered into
by Seller shall constitute a "Lease" for purposes of this Agreement.

(c)               
Maintenance of Insurance. Seller shall keep the Improvements insured against loss or damage (including
rental loss) by fire and all risks covered by the Seller's insurance that is currently in force, provided that Seller may make
adjustments in Seller's insurance coverage for the Property which are consistent with Seller's general insurance program for Seller's
other apartment properties as in effect from time to time.

(d)              
Enforcement of Existing Leases. Seller shall perform the landlord's material obligations to the tenants
under the Leases and enforce the material obligations of the tenants under the Leases, in each case in accordance with the current
management standards of Seller for its apartment properties.

(e)               
Preparation of Vacant Units for Lease. Seller shall place apartment units that are now vacant or that
become vacant into rent-ready condition on or before the Closing Date in accordance with Seller's current management standards
for its apartment properties as though no sale of the Property were contemplated or, at Seller's option, provide Purchaser a credit
at Closing equal to Seven Hundred Fifty and no/100 Dollars ($750.00) per unit for the apartment units that are not in rent-ready
condition on the Closing Date; provided, however, that with respect to apartment units vacated during the five (5) day period
ending on the Closing Date, Seller shall have no obligation either to put such units into rent-ready condition or to give Purchaser
a credit for the cost of doing so.

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(f)               
Removal and Replacement of Tangible Personal Property. Seller shall not remove any Tangible Personal
Property except as may be required for necessary repair or replacement (which repair and replacement shall be of equal quality
and quantity as existed as of the time of the removal), or otherwise in accordance with current inventory and management standards
of Seller for its apartment properties, provided that any appliances, leasing office furniture, pool furniture, fitness center
equipment, or other similar items of equipment so removed by Seller are promptly replaced by Seller, at its cost, with items of
comparable value and utility.

(g)              
Execution of New Contracts. Seller shall not, without Purchaser's prior written consent in each instance
(which consent may be withheld in Purchaser's sole discretion), materially amend or terminate any of the Designated Service Contracts,
or enter into any contract or agreement that will be an obligation affecting the Property or binding on Purchaser after the Closing,
except that (i) Seller may enter into, amend or enforce (including enforcement by termination) Service Contracts in the ordinary
course of business as reasonably necessary for the continued operation and maintenance of the Property, provided any new Service
Contracts are terminable without cause or penalty on thirty (30) days' notice, and (ii) Seller may conduct leasing activity as
provided in Section 5.4(b) hereof.

(h)              
Maintenance of Permits. Seller shall make commercially reasonable efforts to maintain in existence all
licenses, permits and approvals that are now in existence with respect to, and are required for, the ownership, operation or improvement
of the Property, and are of a continuing nature.

(i)                
Management Contracts. As of Closing the property management contract pertaining to the Property shall
have been terminated.

		5.5	Representations
                                         and Warranties of Purchaser. Purchaser hereby makes the following representations
                                         and warranties to Seller as of the Effective Date: 

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(a)               
Organization and Authority. Purchaser has been duly organized and is validly existing as a corporation
under the laws of the State of Illinois. Purchaser has the full right and authority to enter into this Agreement and to purchase
the Property pursuant hereto and to consummate or cause to be consummated the transactions contemplated herein. The person signing
this Agreement on behalf of Purchaser is authorized to do so. Neither the execution and delivery of this Agreement nor any other
documents executed and delivered, or to be executed and delivered, by Purchaser in connection with the transactions described
herein, will violate any provision of Purchaser's organizational documents or of any agreements, regulations, or laws to or by
which Purchaser is bound. This Agreement has been duly authorized, executed and delivered by Purchaser, is a valid and binding
obligation of Purchaser and is enforceable against Purchaser in accordance with its terms subject to (i) applicable bankruptcy,
insolvency, reorganization, moratorium, and other laws affecting the rights of creditors generally; and (ii) the exercise of judicial
discretion in accordance with general principles of equity.

(b)              
Consents. Purchaser has obtained all consents and permissions (if any) related to the transactions herein
contemplated and required under any covenant, agreement, encumbrance, law or regulation by which Purchaser is bound.

(c)               
Pending Actions. To Purchaser's knowledge, there is no action, suit, arbitration, administrative or judicial
administrative proceeding, or unsatisfied order or judgment pending or threatened against Purchaser or the transaction contemplated
by this Agreement, which, if adversely determined, could individually or in the aggregate have a material adverse effect on Purchaser's
ability to consummate the transaction contemplated herein.

(d)              
ERISA. Purchaser is not (i) an "employee benefit plan" within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), (ii) a "governmental plan"
under Section 3(32) of ERISA, (iii) any plan described in Section 4975 of the Internal Revenue Code, or (iv) an entity whose underlying
assets include "plan assets" by reason of the application of the ERISA "plan assets" regulation (29 C.F.R.
2510.3-101).

(e)               
Patriot Act and Related Matters. Purchaser hereby represents, warrants, covenants and agrees, as of the
date hereof and as of the Closing Date, as follows:

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(A)                       
Purchaser is familiar with the source of funds for the purchase price of the Property and represents that all such funds
are and will be derived from legitimate business activities within the United States of America and/or from loans from a banking
or financial institution chartered or organized within the United States of America. To the extent Seller is required to obtain
such information in order to comply with applicable law, regulation or official government request, and to the extent providing
such information does not violate applicable law, regulation or official government request, Purchaser agrees to provide to Seller
such documents, certifications or other evidence as may be reasonably requested from time to time by Seller, confirming the source
of funds for the Purchase Price (and that such funds derived from legitimate business activities).

(B)                       
Purchaser has been in compliance in all material respects for the last five years and will continue to be in compliance
in all material respects through the Closing Date with (a) the PATRIOT Act, Pub. L. No. 107-56, the Bank Secrecy Act, 31 U.S.C.
§ 5311 et seq., the Money Laundering Control Act of 1986, and laws relating to the prevention and detection of money laundering
in 18 U.S.C. §§ 1956 and 1957; (b) the Export Administration Act (50 U.S.C. §§ 2401-2420), the International
Emergency Economic Powers Act (50 U.S.C. § 1701, et seq.), the Arms Export Control Act (22 U.S.C. §§ 2778-2994),
the Trading With The Enemy Act (50 U.S.C. app. §§ 1-44), and 13 U.S.C. Chapter 9; (c) the Foreign Asset Control Regulations
contained in 31 C.F.R., Subtitle B, Chapter V; and (d) any other civil or criminal federal or state laws, regulations, or orders
of similar import. 

(C)                       
None of the Purchaser Parties (as defined below) is now or shall be at any time until the Closing Date be a person who
has been listed on (a) the Specially Designated Nationals and Blocked Persons List contained in Appendix A to 31 C.F.R., Subtitle
B, Part V; (b) the Denied Persons List, the Entity List, and the Unverified Parties List maintained by the United States Department
of Commerce; (c) the List of Terrorists and List of Debarred Parties maintained by the United States Department of State; and
(d) any other similar list maintained by any federal or state agency or pursuant to any Executive Order of the President of the
United States of America. "Purchaser Parties" means, collectively, (A) Purchaser, (B) its executive officers,
directors, managers, agents and employees, (C) its shareholders, members, partners, and other investors, or any other person that
owns or controls Purchaser, and (D) any entity on whose behalf Purchaser acts. 

		5.6	Survival
                                         of Purchaser's Representations and Warranties. The representations and
                                         warranties of Purchaser set forth in Section 5.5 shall survive Closing for a period of
                                         six (6) months after Closing provided, however, that Purchaser's representations in Section
                                         5.5(f) shall survive for the applicable statute of limitations. 

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		5.7	Covenants
                                         of Purchaser. 

(a)               
EXCEPT FOR CLAIMS BASED ON FRAUD AND/OR A BREACH BY SELLER OF THE REPRESENTATIONS AND
WARRANTIES CONTAINED IN SECTION 5.1(g), PURCHASER IRREVOCABLY WAIVES ANY CLAIM AGAINST SELLER ARISING FROM THE PRESENCE
OF HAZARDOUS MATERIALS OR MOLD OR ANY MOLD CONDITION ON THE PROPERTY OR THE BREACH OF ENVIRONMENTAL LAWS WITH RESPECT TO THE PROPERTY.
"Mold" means mold, mildew, fungus or other
potentially dangerous organisms. "Mold Condition" means the presence or suspected
presence of Mold or any condition(s) that reasonably can be expected to give rise to or indicate the presence of Mold, including
observed or suspected instances of water damage or intrusion, the presence of wet or damp wood, cellulose wallboard, floor coverings
or other materials, inappropriate climate control, discoloration of walls, ceilings or floors, complaints of respiratory ailment
or eye irritation by residents, employees or any other occupants or invitees in the Property, or any notice form a governmental
agency of complaints regarding the indoor air quality at the Property.

(b)              
"Designated Service Contracts" means (i)
those certain Service Contracts which are assignable in accordance with their terms which Purchaser identifies by written notice
delivered to Seller on or before the Inspection Date as the Service Contracts Purchaser elects Seller to assign to Purchaser at
Closing, (ii) those assignable Service Contracts regarding which Purchaser has failed to deliver such written notice on or before
the Inspection Date, and (iii) those Service Contracts (the “Must Take Service Contracts”)
attached hereto as Schedule 5.7(b) which are assignable in accordance with their terms and which may not be terminated without
cause or penalty, with thirty (30) days (or less) written notice. Purchaser hereby covenants with Seller that on or before the
Inspection Date, Purchaser shall deliver written notice to Seller instructing which of the assignable Service Contracts Purchaser
desires for Seller to assign to Purchaser and which it does not. If Purchaser fails to timely deliver such notice, Purchaser shall
be deemed to have chosen to have all assignable Service Contracts assigned to Purchaser, and all such Service Contracts shall
be deemed part of the “Designated Service Contracts.” If Purchaser charges
any vendor approval fees that would otherwise be payable by a service provider in connection with the assignment of any Service
Contracts, Purchaser agrees to waive and release such fees. At Closing, Seller will cause the Service Contracts which Purchaser
has elected not to have assigned to Purchaser (other than the Must Take Service Contracts), by operation of the aforesaid notice
on or before the Inspection Date, to be terminated at Seller’s expense, such termination to be effective within the time
period provided for in the applicable Service Contract (or if no such time period is provided, as promptly as practicable after
the Closing Date). The provisions of this Section 5.7(b) shall survive Closing.

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		5.8	Special
                                         Provisions Concerning Condominium Conversion.

(a)               
If Purchaser or any affiliate of Purchaser shall elect to conduct a program of sales of condominium units within the Property,
or otherwise to convert all or any part of a Property to the condominium form of ownership at any time during the ten (10) year
period following issuance of the Certificate of Occupancy for the Property (i.e., April 2010), such party shall provide Seller
with copies of the proposed condominium documentation in advance of submission to any governmental agency with jurisdiction over
such sales program, or in advance of any recordation of any such documentation in the real property records. The proposed condominium
documentation shall reflect a "Developer" or "Declarant" (or similar party) other than Seller or any affiliate
of Seller and, except as may otherwise be required by law, shall contain no terms or provisions which would permit a proposed
unit purchaser to learn that Seller or any affiliate of Seller was involved in or connected with the Property or the proposed
condominium in any manner.

(b)              
Purchaser agrees that, at all times from and after Closing, it will indemnify, hold harmless and defend Seller and its
affiliates, and their respective officers, partners, members, directors, employees and agents (herein collectively called the
"Indemnified Parties") from and against any and
all liabilities, damages, losses, costs and expenses (including attorneys' fees and expenses), which any of the Indemnified Parties
may suffer, incur or be obligated to perform as a result of Purchaser's, or any of its affiliates', and only Purchaser or one
of its affiliates, converting the form of ownership of all or any part of the Property to a condominium form of ownership and/or
selling residential condominium units within the Property (hereinafter collectively called the "Condo Claims").
The foregoing indemnity with respect to the Condo Claims shall be in effect regardless of whether the Condo Claims result from
actions of condominium unit owners, condominium unit purchasers or condominium or property owners' association and regardless
of whether such Condo Claims relate to the construction of the Property or any other matter, nature or thing, whatsoever. In the
event Purchaser receives notice or otherwise becomes aware (while having an ownership interest in the Property) of a claim by
any unit owner, unit purchasers, or condominium or property owner's association and/or any other person or entity, whether such
claim relates to the construction of the Property or any other matter, nature or thing, whatsoever, Purchaser agrees to take any
and all actions which are reasonably necessary to prevent any claims from being brought against any of the Indemnified Parties.

    35 

     

    

 

(c)               
Prior to Closing, Purchaser shall not undertake or commence any sales or marketing activities regarding the conversion
of all or any part of the Property to a condominium form of ownership or the marketing or sale of condominium units therein, including,
without limitation, the submittal or recordation of any documentation regarding the conversion of the Property to a condominium
form of ownership or the marketing or sale of condominium units therein. Additionally, and not by way of limitation, prior to
Closing, neither Purchaser nor any affiliate of Purchaser, nor any of their respective partners, members, officers, directors,
shareholders, agents or representatives, shall communicate any information about or concerning the future or potential conversion
of all or any part of the Property to a condominium form of ownership, or the sale or marketing of any condominium units therein,
to any existing or potential tenant or occupant of Seller or the Property. Notwithstanding the foregoing provisions or anything
contained in this Agreement to the contrary, Purchaser shall be permitted to inspect or review any or all records of any federal,
state or local governmental authority, and shall be permitted to make such inquiries of and obtain such documentation and information
related to the Property from any federal, state or local governmental authorities to be able to confirm the compliance and the
condition of the Property with respect to all governmental requirements and Purchaser's ability to convert the Property to condominium
use; provided, however, that this Section 5.8 does not permit the disclosure of any information concerning the potential
conversion of the Property to a condominium form of ownership to any tenant or occupant of the Property or potential purchasers
of condominium units prior to Closing.

(d)              
This Section 5.8 shall survive the termination, cancellation, rescission or consummation of this Agreement.

Article
6

DEFAULT

		6.1	Default
                                         by Purchaser. If the sale of the Property as contemplated hereunder is
                                         not consummated due to Purchaser's default hereunder, then Seller shall be entitled,
                                         as its sole and exclusive remedy for such default, to terminate this Agreement and receive
                                         the Earnest Money as liquidated damages for the breach of this Agreement and not as a
                                         penalty, it being agreed between the parties hereto that the actual damages to Seller
                                         in the event of such breach are impractical to ascertain and the amount of the Earnest
                                         Money is a reasonable estimate thereof, Seller hereby expressly waiving and relinquishing
                                         any and all other remedies at law or in equity. Seller's right to receive the Earnest
                                         Money is intended not as a penalty, but as full liquidated damages. The right to receive
                                         the Earnest Money as full liquidated damages is Seller's sole and exclusive remedy in
                                         the event of default hereunder by Purchaser, and Seller hereby waives and releases any
                                         right to (and hereby covenants that it shall not) sue Purchaser: (a) for specific performance
                                         of this Agreement, or (b) to recover any damages of any nature or description other than
                                         or in excess of the Earnest Money. Purchaser hereby waives and releases any right to
                                         (and hereby covenants that it shall not) sue Seller or seek or claim a refund of the
                                         Earnest Money (or any part thereof) on the grounds it is unreasonable in amount and exceeds
                                         Seller's actual damages or that its retention by Seller constitutes a penalty and not
                                         agreed upon and reasonable liquidated damages. This Section 6.1 is subject to Section
                                         6.4 hereof. 

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		6.2	Default
                                         by Seller. If the sale of the Property as contemplated hereunder is not
                                         consummated due to Seller's default hereunder, then Purchaser shall be entitled, as its
                                         sole remedy for such default, either (a) to receive the return of the Earnest Money,
                                         which return shall operate to terminate this Agreement and release Seller from any and
                                         all liability hereunder, and Seller shall reimburse Purchaser for its actual third party
                                         costs incurred in connection with this Agreement, not to exceed One Hundred Thousand
                                         and 00/100 Dollars ($100,000.00), (b) to seek specific performance of Seller's obligation
                                         to execute and deliver the documents required to convey said Property to Purchaser, it
                                         being understood and agreed that the remedy of specific performance shall not be available
                                         to enforce any other obligation of Seller hereunder, or (c) solely to the extent that
                                         specific performance is not available to Purchaser due to (x) Seller’s conveyance
                                         of all or a material portion of the Property by Seller to a party other than Purchaser,
                                         or (y) a material encumbrance of the Property intentionally made by Seller in breach
                                         of this Agreement, Purchaser shall have the right to bring an action against Seller to
                                         recover any and all actual damages (but excluding consequential and punitive damages)
                                         incurred by Purchaser arising as a result of Seller’s actions, but not to exceed
                                         Six Hundred Fifty Thousand and No/100s Dollars ($650,000.00). In no event shall Seller
                                         be liable for consequential, speculative, remote or punitive damages. Purchaser shall
                                         be deemed to have elected to terminate this Agreement and receive back the Earnest Money
                                         if Purchaser fails to file suit for specific performance against Seller in a court having
                                         jurisdiction in the county and state in which the Property is located, on or before ninety
                                         (90) days following the date upon which Closing was to have occurred. 

		6.3	Notice
                                         of Default; Opportunity to Cure. Neither Seller nor Purchaser shall be
                                         deemed to be in default hereunder until and unless such party has been given written
                                         notice of its failure to comply with the terms hereof and thereafter does not cure such
                                         failure within five (5) business days after receipt of such notice; provided, however,
                                         that this Section 6.3 shall not be applicable to Purchaser's failure to deliver the Earnest
                                         Money or any portion thereof on the date required hereunder or to a party's failure to
                                         make any deliveries required of such party on the Closing Date and, accordingly, shall
                                         not have the effect of extending the Closing Date or the due date of any Earnest Money
                                         deposit hereunder. 

		6.4	Recoverable
                                         Damages. Notwithstanding Sections 6.1 and 6.2 hereof, in no event shall
                                         the provisions of Sections 6.1 and 6.2 limit (i) either Purchaser's or Seller's obligation
                                         to indemnify the other party, or the damages recoverable by the indemnified party against
                                         the indemnifying party due to, a party's express obligation to indemnify the other party
                                         in accordance with the Sections 3.1, 4.8, 4.9, or 8.1(b) of this Agreement, or (ii) either
                                         party's obligation to pay costs, fees or expenses under Section 4.5 hereof, or the damages
                                         recoverable by either party against the other party due to a party's failure to pay such
                                         costs. In addition, if this Agreement terminates for any reason, other than a default
                                         by Seller hereunder for which Purchaser has elected to pursue the remedy of specific
                                         performance, and Purchaser or any party related to or affiliated with Purchaser asserts
                                         any claim or right to the Property that would otherwise delay or prevent Seller from
                                         having clear, indefeasible, and marketable title to the Property, then Seller shall have
                                         all rights and remedies available at law or in equity with respect to such assertion
                                         by Purchaser and any loss, damage or other consequence suffered by Seller as a result
                                         of such assertion. 

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Article
7

RISK OF LOSS

		7.1	Damage.
                                         In the event of "damage" to the Property or any portion thereof, which
                                         is "major" (as such terms are hereinafter defined) then Seller shall promptly
                                         notify Purchaser thereof. In the event of such major damage, Purchaser may elect to proceed
                                         with the Closing (subject to the other provisions of this Agreement) or may terminate
                                         this Agreement by delivering written notice thereof to Seller within ten (10) days after
                                         Purchaser's receipt of Seller's notice respecting the damage. If, within ten (10) days
                                         of receipt of Seller's notice respecting such major damage, Purchaser delivers written
                                         notice of termination of this Agreement to Seller, this Agreement shall terminate, all
                                         Earnest Money shall be returned to Purchaser and, except for obligations of the parties
                                         which survive termination of this Agreement, the parties shall have no further obligations
                                         hereunder. If Purchaser does not timely elect to terminate this Agreement, Purchaser
                                         shall have no further right to terminate this Agreement as a result of the damage and
                                         in such event, Seller shall assign to Purchaser at Closing all insurance proceeds or
                                         condemnation awards payable as a result of such damage and pay any insurance deductible
                                         due under Seller's insurance policy(ies). If the damage is not major, Seller shall assign
                                         to Purchaser at Closing all insurance proceeds or condemnation awards payable as a result
                                         of such damage and pay any insurance deductible due under Seller's insurance policy(ies).
                                         In the event the damage is not major and prior to Closing sufficient insurance proceeds
                                         are not received or committed in writing by the insurance carrier sufficient to repair
                                         any damage, Seller shall repair such damage by Closing or give Purchaser a credit at
                                         Closing in an amount sufficient to pay for the cost unpaid as of Closing for repair of
                                         the applicable damage (i.e. to restore the Property to substantially the same condition
                                         as immediately before such casualty), such amount to be determined by an architect or
                                         other appropriate professional selected by Seller and approved by Purchaser, such approval
                                         not to be unreasonably withheld, conditioned or delayed. Any assignment by Seller to
                                         Purchaser of insurance proceeds respecting loss of rental income shall be limited to
                                         that portion of such proceeds attributable to periods after Closing. 

		7.2	Definition
                                         of Major Damage. For purposes of Section 7.1: 

(a)               
"damage" means (i) physical damage to or
destruction of all or part of the Real Property by reason of fire, earthquake, tornado, flood or other casualty occurring after
the Effective Date or (ii) the physical taking of all or part of the Real Property by condemnation or by conveyance in lieu of
condemnation occurring after the Effective Date; and

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(b)              
"major" damage refers to the following: (i)
damage such that the cost of repairing or restoring the premises in question to a condition substantially similar to that of the
premises in question prior to the event of damage would in the opinion of an architect selected by Seller and reasonably approved
by Purchaser, be equal to or greater than Three Hundred Fifty Thousand and no/100s Dollars ($350,000.00), and (ii) any damage
due to a condemnation or conveyance in lieu of condemnation which permanently and materially impairs the current use or value
of a Property or access to such Property from public roads or the number or utility of parking spaces. If Purchaser does not give
notice to Seller of Purchaser's reasons for disapproving an architect within five (5) business days after receipt of notice of
the proposed architect, then Purchaser shall be deemed to have approved the architect selected by Seller.

		7.3	Seller's
                                         Insurance. If necessary or appropriate for Purchaser to evaluate its options
                                         or enforce its rights under this Article 7 following any damage to the Property, Seller
                                         shall promptly provide to Purchaser on request a copy of Seller's property insurance
                                         policies (or other applicable insurance policies) with respect to the Property. 

Article
8

COMMISSIONS

		8.1	Broker's
                                         Commission

(a)               
The parties acknowledge that Berkadia Real Estate Advisors LLC ("Broker"),
has been retained by and represents Seller as broker in connection with the subject transaction, and is to be compensated for
its services by Seller. Seller agrees that Seller shall pay to Broker upon, but only upon, final consummation of the transaction
contemplated herein, a brokerage commission pursuant to a separate written agreement between Seller and Broker.

(b)              
Purchaser and Seller each hereby represents and warrants to the other that it has not disclosed this Agreement or the subject
matter hereof to, and has not otherwise dealt with, any real estate broker, agent or salesman (other than Broker) so as to create
any legal right or claim in any such broker, agent or salesman (other than Broker) for a real estate commission or similar fee
or compensation with respect to the negotiation and/or consummation of this Agreement or the conveyance of the Property by Seller
to Purchaser. Except as provided in this Section 8.1 with respect to Broker, Purchaser and Seller shall indemnify, hold
harmless and defend each other from and against any and claims and demands for a real estate brokerage commission or similar fee
or compensation arising out of any claimed dealings with the indemnifying party and relating to this Agreement or the purchase
and sale of the Property (including reasonable attorneys' fees and expenses and court costs incurred in defending any such claim
or in enforcing this indemnity).

		8.2	Survival.
                                         This Article 8 shall survive the rescission, cancellation, termination or consummation
                                         of this Agreement. 

    39 

     

    

 

Article
9

DISCLAIMERS AND WAIVERS

		9.1	No
                                         Reliance on Documents. EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES SET
                                         FORTH IN THIS AGREEMENT HEREOF AND IN THE CLOSING DOCUMENTS, SELLER MAKES NO REPRESENTATION
                                         OR WARRANTY AS TO THE TRUTH, ACCURACY OR COMPLETENESS OF ANY MATERIALS, DATA OR INFORMATION
                                         DELIVERED BY SELLER TO PURCHASER IN CONNECTION WITH THE TRANSACTION CONTEMPLATED HEREBY.
                                         PURCHASER ACKNOWLEDGES AND AGREES THAT ALL MATERIALS, DATA AND INFORMATION DELIVERED
                                         BY SELLER TO PURCHASER IN CONNECTION WITH THE TRANSACTION CONTEMPLATED HEREBY ARE PROVIDED
                                         TO PURCHASER AS A CONVENIENCE ONLY AND THAT ANY RELIANCE ON OR USE OF SUCH MATERIALS,
                                         DATA OR INFORMATION BY PURCHASER SHALL BE AT THE SOLE RISK OF PURCHASER, EXCEPT AS OTHERWISE
                                         EXPRESSLY STATED HEREIN. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, PURCHASER
                                         ACKNOWLEDGES AND AGREES THAT (A) ANY ENVIRONMENTAL OR OTHER REPORT WITH RESPECT TO THE
                                         PROPERTY WHICH IS DELIVERED BY SELLER TO PURCHASER SHALL BE FOR GENERAL INFORMATIONAL
                                         PURPOSES ONLY, (B) PURCHASER SHALL NOT HAVE ANY RIGHT TO RELY ON ANY SUCH REPORT DELIVERED
                                         BY SELLER TO PURCHASER, BUT RATHER WILL RELY ON ITS OWN INSPECTIONS AND INVESTIGATIONS
                                         OF THE PROPERTY AND ANY REPORTS COMMISSIONED BY PURCHASER WITH RESPECT THERETO, AND (C)
                                         NEITHER SELLER, ANY AFFILIATE OF SELLER NOR THE PERSON OR ENTITY WHICH PREPARED ANY SUCH
                                         REPORT DELIVERED BY SELLER TO PURCHASER SHALL HAVE ANY LIABILITY TO PURCHASER FOR ANY
                                         INACCURACY IN OR OMISSION FROM ANY SUCH REPORT.

		9.2	Disclaimers.
                                         EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER SET FORTH IN THIS
                                         AGREEMENT HEREOF AND IN THE CLOSING DOCUMENTS, PURCHASER UNDERSTANDS AND AGREES THAT
                                         SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF
                                         ANY KIND OR CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING,
                                         BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY,
                                         FITNESS FOR A PARTICULAR PURPOSE, TITLE (OTHER THAN SELLER'S LIMITED OR SPECIAL WARRANTY
                                         OF TITLE TO BE SET FORTH IN THE DEED), ZONING, TAX CONSEQUENCES, LATENT OR PATENT PHYSICAL
                                         OR ENVIRONMENTAL CONDITION, UTILITIES, OPERATING HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL
                                         APPROVALS, THE

    40 

     

    

 

COMPLIANCE
OF THE PROPERTY WITH APPLICABLE LAWS, THE ABSENCE OR PRESENCE OF HAZARDOUS MATERIALS OR OTHER TOXIC SUBSTANCES (INCLUDING WITHOUT
LIMITATION MOLD OR ANY MOLD CONDITION), COMPLIANCE WITH ENVIRONMENTAL LAWS OR ACCESS LAWS, THE TRUTH, ACCURACY OR COMPLETENESS
OF THE PROPERTY DOCUMENTS OR ANY OTHER INFORMATION PROVIDED BY OR ON BEHALF OF SELLER TO PURCHASER, OR ANY OTHER MATTER OR THING
REGARDING THE PROPERTY. PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING SELLER SHALL SELL AND CONVEY TO PURCHASER AND PURCHASER
SHALL ACCEPT THE PROPERTY "AS IS, WHERE IS, WITH ALL FAULTS", EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE IN THIS
AGREEMENT AND IN THE CLOSING DOCUMENTS. PURCHASER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT LIABLE FOR OR BOUND BY,
ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING
THERETO (INCLUDING SPECIFICALLY, WITHOUT LIMITATION, PROPERTY INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE
OR FURNISHED BY SELLER, THE MANAGER OF THE PROPERTY, OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT
SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT.

PURCHASER
REPRESENTS TO SELLER THAT PURCHASER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING
BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS PURCHASER DEEMS NECESSARY TO SATISFY ITSELF AS TO THE
CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS MATERIALS
OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY (INCLUDING WITHOUT LIMITATION ANY MOLD OR MOLD CONDITION), OR WITH RESPECT
TO ACCESS LAWS, AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR
EMPLOYEES WITH RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER AS ARE EXPRESSLY SET FORTH
IN THIS AGREEMENT. UPON CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, DESIGN, CONSTRUCTION
DEFECTS, ADVERSE PHYSICAL OR ENVIRONMENTAL CONDITIONS, OR NONCOMPLIANCE WITH ACCESS LAWS, MAY NOT HAVE BEEN REVEALED BY PURCHASER'S
INVESTIGATIONS, AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER'S AND
ITS PARTNERS' 

    41 

     

    

 

RESPECTIVE
OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING
CAUSES OF ACTION IN TORT OR UNDER ANY ENVIRONMENTAL LAW), LOSSES, DAMAGES, LIABILITIES, FINES, PENALTIES (WHETHER BASED ON STRICT
LIABILITY OR OTHERWISE), COSTS AND EXPENSES (INCLUDING ATTORNEYS' FEES AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN
OR UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER'S AND ITS PARTNERS' RESPECTIVE OFFICERS,
DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS
OR PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING, WITHOUT LIMITATION, ANY ENVIRONMENTAL LAWS OR ACCESS LAWS)
AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY. THE FOREGOING SHALL NOT BE INTERPRETED
TO WAIVE ANY CLAIM OF PURCHASER WITH RESPECT TO FRAUD OR ANY BREACH BY SELLER OF ANY EXPRESS REPRESENTATIONS AND WARRANTIES MADE
BY SELLER IN SECTION 5.1 THAT EXPRESSLY SURVIVE CLOSING PURSUANT TO SECTION 5.3. 

PURCHASER
AGREES THAT SHOULD ANY INVESTIGATION, CLEANUP, REMEDIATION OR REMOVAL OF HAZARDOUS SUBSTANCES OR OTHER ENVIRONMENTAL CONDITIONS
(INCLUDING WITHOUT LIMITATION ANY MOLD OR MOLD CONDITION) ON OR RELATED TO THE PROPERTY BE REQUIRED AFTER THE DATE OF CLOSING,
SELLER SHALL HAVE NO LIABILITY TO PURCHASER TO PERFORM OR PAY FOR SUCH INVESTIGATION, CLEAN-UP, REMOVAL OR REMEDIATION, AND PURCHASER
EXPRESSLY WAIVES AND RELEASES ANY CLAIM TO THE CONTRARY. PURCHASER FURTHER AGREES THAT SHOULD ANY INVESTIGATION OR CURATIVE ACTION
ON OR RELATED TO THE PROPERTY BE REQUIRED AFTER THE DATE OF CLOSING UNDER ANY ACCESS LAWS, SELLER SHALL HAVE NO LIABILITY TO PURCHASER
TO PERFORM OR PAY FOR SUCH INVESTIGATION OR CURATIVE ACTION AND PURCHASER EXPRESSLY WAIVES AND RELEASES ANY CLAIM TO THE CONTRARY.
THE FOREGOING SHALL NOT BE INTERPRETED TO WAIVE ANY BREACH BY SELLER OF ANY EXPRESS REPRESENTATIONS AND WARRANTIES MADE BY SELLER
IN SECTION 5.1 THAT EXPRESSLY SURVIVE CLOSING PURSUANT TO SECTION 5.3. 

    42 

     

    

 

PURCHASER
REPRESENTS AND WARRANTS THAT THE TERMS OF THE RELEASE CONTAINED HEREIN AND ITS CONSEQUENCES HAVE BEEN COMPLETELY READ AND UNDERSTOOD
BY PURCHASER, AND PURCHASER HAS HAD THE OPPORTUNITY TO CONSULT WITH, AND HAS CONSULTED WITH, LEGAL COUNSEL OF PURCHASER'S CHOICE
WITH REGARD TO THE TERMS OF THIS RELEASE. PURCHASER ACKNOWLEDGES AND WARRANTS THAT PURCHASER'S EXECUTION OF THIS RELEASE IS FREE
AND VOLUNTARY. 

		9.3	Certain
                                         Definitions. The term "Access Laws" means the Americans
                                         With Disabilities Act, the Fair Housing Act, the Rehabilitation Act and other federal
                                         laws and all applicable state, regional, county, municipal and other local laws, regulations
                                         and ordinances governing access to handicapped or disabled persons or the construction
                                         or design of residential dwelling units, places of public accommodation, or common areas
                                         which are at or on the Property. 

		9.4	Effect
                                         and Survival of Disclaimers. Seller and Purchaser acknowledge that the
                                         provisions of this Article 9 are an integral part of the transactions contemplated in
                                         this Agreement and a material inducement to Seller to enter into this Agreement and that
                                         Seller would not enter into this Agreement but for the provisions of this Article 9.
                                         Seller and Purchaser agree that the provisions of this Article 9 shall survive Closing
                                         or any termination of this Agreement. 

 

Article
10

ESCROW AGENT

		10.1	Investment
                                         of Earnest Money. Escrow Agent shall invest the Earnest Money pursuant
                                         to Purchaser's directions in an interest bearing account at a commercial bank whose deposits
                                         are insured by the Federal Deposit Insurance Corporation; provided, however, Purchaser
                                         may elect to not invest the Earnest Money. Escrow Agent shall notify Seller, no later
                                         than one (1) business day after Escrow Agent's receipt thereof, that Escrow Agent has
                                         received the Earnest Money in immediately available funds, and is holding the same in
                                         accordance with the terms of this Agreement. However, if Purchaser elects to invest the
                                         Earnest Money, Escrow Agent shall invest the Earnest Money only in such accounts as will
                                         allow Escrow Agent to disburse the Earnest Money upon no more than one (1) business days'
                                         notice. 

		10.2	Intentionally
                                         Omitted. 

    43 

     

    

 

		10.3	Payment
                                         on Demand. Upon receipt of any written certification from Seller or Purchaser
                                         claiming the Earnest Money pursuant to the provisions of this Agreement, Escrow Agent
                                         shall promptly forward a copy thereof to the other such party (i.e., Purchaser or Seller,
                                         whichever did not claim the Earnest Money pursuant to such notice) and, unless such other
                                         party within ten (10) days thereafter notifies Escrow Agent of any objection to such
                                         requested disbursement of the Earnest Money in which case Escrow Agent shall retain the
                                         Earnest Money subject to Section 10.5 below, Escrow Agent shall disburse the Earnest
                                         Money to the party demanding the same and shall thereupon be released and discharged
                                         from any further duty or obligation hereunder; provided, however, to the extent that
                                         Purchaser terminates this Agreement pursuant to the terms and conditions of Section 3.2
                                         hereinabove, the Earnest Money shall be promptly disbursed to Purchaser. 

		10.4	Exculpation
                                         of Escrow Agent. It is agreed that the duties of Escrow Agent are herein
                                         specifically provided and are purely ministerial in nature, and that Escrow Agent shall
                                         incur no liability whatsoever except for its misconduct or negligence, so long as Escrow
                                         Agent is acting in good faith. Seller and Purchaser do each hereby release Escrow Agent
                                         from any liability for any error of judgment or for any act done or omitted to be done
                                         by Escrow Agent in the good faith performance of its duties hereunder and do each hereby
                                         indemnify Escrow Agent against, and agree to hold, save, and defend Escrow Agent harmless
                                         from, any costs, liabilities, and expenses incurred by Escrow Agent in serving as Escrow
                                         Agent hereunder and in faithfully discharging its duties and obligations hereunder. 

		10.5	Stakeholder.
                                         Escrow Agent is acting as a stakeholder only with respect to the Earnest Money. If
                                         there is any dispute as to whether Escrow Agent is obligated to deliver the Earnest Money
                                         or as to whom the Earnest Money is to be delivered, Escrow Agent may refuse to make any
                                         delivery and may continue to hold the Earnest Money until receipt by Escrow Agent of
                                         an authorization in writing, signed by Seller and Purchaser, directing the disposition
                                         of the Earnest Money, or, in the absence of such written authorization, until final determination
                                         of the rights of the parties in an appropriate judicial proceeding. If such written authorization
                                         is not given, or a proceeding for such determination is not begun, within thirty (30)
                                         days of notice to Escrow Agent of such dispute, Escrow Agent may bring an appropriate
                                         action or proceeding for leave to deposit the Earnest Money in a court of competent jurisdiction
                                         located in the Atlanta metropolitan area pending such determination. Escrow Agent shall
                                         be reimbursed for all costs and expenses of such action or proceeding, including, without
                                         limitation, reasonable attorneys' fees and disbursements, by the party determined not
                                         to be entitled to the Earnest Money. Upon making delivery of the Earnest Money in any
                                         of the manners herein provided, Escrow Agent shall have no further liability or obligation
                                         hereunder. 

		10.6	Interest.
                                         All interest and other income, if any, earned on the Earnest Money deposited with
                                         Escrow Agent hereunder shall be reported for income tax purposes as earnings of Purchaser.
                                         Purchaser's taxpayer identification number is ______________. 

    44 

     

    

 

		10.7	Execution
                                         by Escrow Agent. Escrow Agent has executed this Agreement solely for the
                                         purpose of acknowledging and agreeing to the provisions of this Article 10. Escrow Agent's
                                         consent to any modification or amendment of this Agreement other than this Article 10
                                         shall not be required. 

Article
11

MISCELLANEOUS

		11.1	Intentionally
                                         Deleted. 

		11.2	Intentionally
                                         Deleted. 

		11.3	Assignment.
                                         Purchaser may not assign its rights under this Agreement without first obtaining
                                         Seller's written approval, which approval may be given or withheld in Seller's sole discretion.
                                         Any transfer, directly or indirectly, of any stock, partnership interest or other ownership
                                         interest in Purchaser in excess of 49% without Seller's written approval, which approval
                                         shall not be unreasonably withheld, delayed or conditioned, shall constitute a default
                                         by Purchaser under this Agreement, provided, however, (i) Purchaser may assign this Agreement
                                         at Closing to a Permitted Affiliate without Seller's consent, (ii) Seller or Purchaser
                                         may assign its rights under this Agreement to a reputable exchange accommodation to facilitate
                                         a tax deferred exchange pursuant to Sections 4.8 and 4.9 hereof, and (iii) Seller may
                                         assign this Agreement for tax planning or other purposes as described in Section 2.6.
                                         For purposes hereof, the term "Permitted Affiliate" means an entity
                                         that (i) controls, is controlled or managed by, or is under common control with The Inland
                                         Real Estate Group and/or Inland Private Capital Corporation and/or those persons controlling
                                         and/or managing The Inland Real Estate Group and/or Inland Private Capital Corporation,
                                         (ii) is solvent at the time of assignment, and (iii) at the time of Closing, is not rendered
                                         insolvent by such assignment, and has sufficient assets to consummate the transaction
                                         contemplated herein. No transfer or assignment by Purchaser shall release or relieve
                                         Purchaser of its obligations hereunder.

		11.4	Notices.
                                         Any notice, request or other communication (a "notice") required
                                         or permitted to be given hereunder shall be in writing and shall be delivered by hand
                                         or overnight courier (such as United Parcel Service or Federal Express), sent by email
                                         (provided a copy of such notice is deposited with an overnight courier for next business
                                         day delivery). Any such notice shall be considered given on the date of such hand or
                                         courier delivery, confirmed email transmission if received on a business day (provided
                                         a copy of such notice is deposited with an overnight courier for next business day delivery),
                                         deposit with such overnight courier for next business day delivery, but the time period
                                         (if any is provided herein) in which to respond to such notice shall commence on the
                                         date of hand or overnight courier delivery or on the date received following deposit
                                         in the United States mail as provided above. Rejection or other refusal to accept or
                                         inability to deliver because of changed address of which no notice was given shall be
                                         deemed to be receipt of the notice. By giving at least five (5) days' prior written notice
                                         thereof, any party may from time to time and at any time change its mailing address hereunder.
                                         Any notice of any party may be given by such party's counsel.

    45 

     

    

 

The
parties' respective addresses for notice purposes are as follows. Telephone numbers are given for convenience of reference only.
Notice by telephone shall not be effective.

If to
Seller:

 

Flournoy
Development Company, LLC

900 Brookstone
Centre Parkway

Columbus,
Georgia 31904

Attention:
Thomas H. Flournoy

Phone:
706/243-9406

e-mail:
Tom.Flournoy@FlournoyDev.com

 

with
a copy to:

 

Flournoy
Development Company, LLC

900 Brookstone
Centre Parkway

Columbus,
Georgia 31904

Attention:
Jeremy Brewer, Esq.

Phone:
706/243-9470

e-mail:
Jeremy.Brewer@FlournoyDev.com

and with
a copy to:

 

Burr
& Forman LLP

171 17th
Street NW

Suite
1100

Atlanta,
Georgia 30363

Attention:
G. Wilson Horde III, Esq.

Telephone:
404/685-4288

e-mail:
rhorde@burr.com

 

If to
Purchaser:

 

Inland
Real Estate Acquisitions, Inc.

2901
Butterfield Road

Oak Brook,
Illinois 60523

Attention:
Mark Cosenza

Telephone
No. 630/218-4946

e-mail:
mcosenza@inlandgroup.com

    46 

     

    

 

with
a copy to:

 

The Inland
Real Estate Group, Inc.

2901
Butterfield Road

Oak Brook,
Illinois 60523

Attention:
Brett D. Smith, Esq.

Telephone
No. 630/218-2885

e-mail:
brett.smith@inlandgroup.com

 

If to
Escrow Agent:

 

Nancy Castro

Chicago Title Insurance Company

10 S. LaSalle Street, Suite
3100

Chicago, Illinois 60603

Phone 312/223-2709

e-mail:
nancy.castro@ctt.com

 

		11.5	Modifications.
                                         This Agreement cannot be changed orally, and no agreement shall be effective to waive,
                                         change, modify or discharge it in whole or in part unless such agreement is in writing
                                         and is signed by the parties against whom enforcement of any waiver, change, modification
                                         or discharge is sought. Signatures inscribed on the signature pages of this Agreement
                                         or any formal amendment which are transmitted by email transmission (e.g., PDF files)
                                         shall be valid and effective to bind the party so signing. Each party agrees to promptly
                                         deliver to the other party an executed original of this Agreement or any such formal
                                         amendment with its actual signature, but a failure to do so shall not affect the enforceability
                                         of this Agreement or any such formal amendment, it being expressly agreed that each party
                                         to this Agreement or any formal amendment shall be bound by its own emailed signature
                                         and shall accept the emailed signature of the other party to this Agreement or any formal
                                         amendment.

		11.6	Calculation
                                         of Time Periods. Unless otherwise specified, in computing any period of
                                         time described in this Agreement, 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
                                         under the laws of the State in which 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 final day of any such period shall be deemed to end at 5:00 p.m., Eastern
                                         time.

		11.7	Successors
                                         and Assigns. Subject to Section 11.3 hereof, the terms and provisions
                                         of this Agreement are to apply to and bind the permitted successors and assigns of the
                                         parties hereto.

    47 

     

    

 

		11.8	Entire
                                         Agreement. This Agreement, including the Schedules, contain the entire
                                         agreement between the parties pertaining to the subject matter hereof and fully supersede
                                         all prior written or oral agreements and understandings between the parties pertaining
                                         to such subject matter.

		11.9	Further
                                         Assurances. Each party agrees that it will without further consideration
                                         execute and deliver such other documents and take such other action, whether prior or
                                         subsequent to Closing, as may be reasonably requested by the other party to consummate
                                         more effectively the purposes or subject matter of this Agreement. Without limiting the
                                         generality of the foregoing, Purchaser shall, if requested by Seller, execute acknowledgments
                                         of receipt with respect to any materials delivered by Seller to Purchaser with respect
                                         to the Property. The provisions of this Section 11.9 shall survive Closing.

		11.10	Counterparts.
                                         This Agreement may be executed in identical counterparts, and all such executed counterparts
                                         shall constitute the same agreement. It shall be necessary to account for only one such
                                         counterpart in proving this Agreement.

		11.11	Severability.
                                         If any provision of this Agreement is determined by a court of competent jurisdiction
                                         to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain
                                         in full force and effect.

		11.12	Applicable
                                         Law. This Agreement is performable in the state in which the Property
                                         is located and shall in all respects be governed by, and construed in accordance with,
                                         the substantive federal laws of the United States and the laws of such state. Seller
                                         and Purchaser hereby irrevocably submit to the jurisdiction of any state or federal court
                                         sitting in the state and judicial district in which the Property is located in any action
                                         or proceeding arising out of or relating to this Agreement and hereby irrevocably agree
                                         that all claims in respect of such action or proceeding shall be heard and determined
                                         in a state or federal court sitting in the state and judicial district in which the Property
                                         is located. Purchaser and Seller agree that the provisions of this Section 11.12 shall
                                         survive the Closing of the transaction contemplated by this Agreement.

		11.13	No
                                         Third Party Beneficiary. The provisions of this Agreement and of the documents
                                         to be executed and delivered at Closing are and will be for the benefit of Seller and
                                         Purchaser only and are not for the benefit of any third party, and accordingly, no third
                                         party shall have the right to enforce the provisions of this Agreement or of the documents
                                         to be executed and delivered at Closing. 

    48 

     

    

 

		11.14	Employees.
                                         Seller shall be solely responsible for the salaries and benefits, if any, payable
                                         to Seller's employees at the Property for the period through the Closing, in accordance
                                         with and subject to the terms and conditions of such employment, even if such employees
                                         are employed by or on behalf of Purchaser following the Closing. With respect to any
                                         employees employed by or on behalf of Purchaser following the Closing, Purchaser shall
                                         be solely responsible for all salaries and benefits, if any, payable to such employees
                                         for the period from and after the Closing in accordance with and subject to the terms
                                         and conditions of such employment, even if such employees were employed by Seller prior
                                         to the Closing, provided, however, that Purchaser shall have no obligation to offer employment
                                         to or to employ any employee of the Property following Closing. Neither Purchaser nor
                                         Seller shall have any obligation for salaries, benefits or other employment obligations
                                         to any such employee with respect to the period such employee is or was employed by the
                                         other party; provided that Purchaser shall, unless forbidden by existing benefit plans,
                                         grant to employees of Seller that Purchaser does hire credit for tenure of employment
                                         with Seller in determining the employee's benefits. This Section 11.14 shall survive
                                         the Closing.

		11.15	Seller's
                                         Access to Records after Closing. Purchaser shall reasonably cooperate
                                         with Seller for a period of three (3) years after Closing to make available Purchaser's
                                         employees and Property records, as Seller may reasonably request, in case of Seller's
                                         need in response to any legal requirement, tax audit, tax return preparation, securities
                                         law filing, or litigation threatened or brought against Seller, by allowing Seller and
                                         its agents or representatives access, upon reasonable advance notice (which notice shall
                                         identify the nature of the information sought by Seller), at all reasonable times to
                                         examine and make copies of any and all instruments, files and records which predate the
                                         Closing; provided, however, that nothing contained in this Section 11.15 shall require
                                         Purchaser to retain any files or records for any particular period of time. This Section
                                         11.15 shall survive Closing. 

		11.16	Schedules.
                                         The following schedules attached hereto shall be deemed to be an integral part of
                                         this Agreement:

Schedule
1.1 (a)    -      Legal Description of the Land

Schedule
1.1(d)     -      Inventory of Tangible Personal Property

Schedule
1.1(e)     -      Rent Roll

Schedule
1.6(a)     -      Earnest Money Wiring Instructions

Schedule
3.1(a)     -      Due Diligence Documents

Schedule
4.2(a)     -      Statutory Warranty Deed

Schedule
4.2(b)     -      Bill of Sale and Assignment

Schedule
4.2(c)     -      Tenant Notice

Schedule
4.2(d)     -      Seller's Closing Certificate

Schedule
5.1          -      Seller's Disclosure Statement

Schedule
5.7(b)     -      Schedule of Must Take Service Contracts

Schedule
12.1        -      Additional PSAs and Additional Properties

 

    49 

     

    

 

		11.17	Captions.
                                         The section headings appearing in this Agreement are for convenience of reference
                                         only and are not intended, to any extent and for any purpose, to limit or define the
                                         text of any section or any subsection hereof. 

		11.18	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 schedules or amendments hereto. 

		11.19	Termination
                                         of Agreement. It is understood and agreed that if either Purchaser or
                                         Seller terminates this Agreement pursuant to a right of termination granted hereunder,
                                         such termination shall operate to relieve Seller and Purchaser from all obligations under
                                         this Agreement, except for such obligations as are specifically stated herein to survive
                                         the termination of this Agreement. 

		11.20	Survival.
                                         (a) The provisions of the following Sections of this Agreement shall survive
                                         Closing and shall not be merged into the execution and delivery of the Deed: 3.1(c);
                                         4.2(c); 4.4; 4.5; 4.8; 4.9; 5.1; 5.2; 5.3; 5.5; 5.6; 5.7; 5.8; Article 8; Article 9;
                                         11.9; 11.12; 11.14; 11.15; those additional provisions of Article 11 which govern the
                                         administration, interpretation or enforcement of this Agreement; and any other provisions
                                         contained herein that by their terms survive the Closing (the "Obligations Surviving
                                         Closing"). Except for the Obligations Surviving Closing, all representations,
                                         warranties, covenants and agreements contained in this Agreement shall be merged into
                                         the instruments and documents executed and delivered at Closing. The Obligations Surviving
                                         Closing shall survive the Closing; provided, however, that the representations and warranties
                                         of Seller contained in Section 5.1, as updated by Seller's Closing Certificate, and the
                                         representations and warranties of Purchaser contained in Section 5.5, shall survive for
                                         the period, and are subject to the terms, set forth in Sections 5.3 and 5.6 respectively.

(b)       If
at the time of a written demand by Purchaser upon Seller alleging a breach of or claim under any Obligations Surviving Closing,
Seller's net worth (as that term is defined by generally accepted accounting principles consistently applied) is less than One
Million Fifty Thousand Dollars ($1,050,000.00; the "Minimum Net Worth Threshold"),
then by executing this Agreement below, FDC Development JV, LLC, a Delaware limited liability company ("FDC JV")
shall be deemed and construed to have guaranteed the Obligations Surviving Closing for a period of nine (9) months following the
Closing; provided, however, that FDC JV's liability under said guaranty shall not exceed One Million Fifty Thousand
Dollars ($1,050,000.00). During said nine (9) month period, FDC JV covenants unto Purchaser that FDC JV shall maintain a net worth
not less than the Minimum Net Worth Threshold.

		11.21	Time
                                         of Essence. Time is of the essence with respect to this Agreement. 

    50 

     

    

 

		11.22	Covenant
                                         Not to Record. Except as part of a specific performance actions, Purchaser
                                         shall not record this Agreement or any memorandum or other evidence thereof. Any such
                                         recording shall constitute a material default hereunder on the part of Purchaser. 

		11.23	Limitation
                                         of Seller's Liability. Purchaser shall have no recourse against any of
                                         the past, present or future, direct or indirect, shareholders, partners, members, managers,
                                         principals, directors, officers, agents, incorporators, affiliates or representatives
                                         of Seller or its general partner or of any of the assets or property of any of the foregoing
                                         for the payment or collection of any amount, judgment, judicial process, arbitral award,
                                         fee or cost or for any other obligation or claim arising out of or based upon this Agreement
                                         and requiring the payment of money by Seller. This Section 11.23 shall survive the Closing.
                                         

		11.24	JURY
                                         WAIVER. IN ANY LAWSUIT OR OTHER PROCEEDING INITIATED BY SELLER OR PURCHASER
                                         UNDER OR WITH RESPECT TO THIS AGREEMENT, SELLER AND PURCHASER EACH WAIVE ANY RIGHT IT
                                         MAY HAVE TO TRIAL BY JURY. 

Article
12

ADDITIONAL PROPERTIES

		12.1	Additional
                                         PSAs.Purchaser (or one or more of Purchaser’s affiliates or
                                         designees) and Seller (or one or more of Seller’s affiliates) have, on or about
                                         even date herewith, entered into those certain purchase and sale agreements described
                                         on Schedule 12.1 hereto (each an “Additional PSA” and, collectively,
                                         the “Additional PSAs”) to acquire one or more additional properties
                                         listed on such Schedule 12.1 (each an “Additional Property”
                                         and, collectively, the “Additional Properties”).

		12.2	Agreements
                                         Regarding Additional PSAs.Purchaser and
                                         Seller hereby agree as follows with respect to the Additional PSAs and the transactions
                                         contemplated thereby:

(a)
Termination by Purchaser On or Prior to the Inspection Date. If on or prior to the Inspection Date, Purchaser elects to terminate
this Agreement in accordance with the terms and provisions hereof, then Seller shall have the right to terminate any other Additional
PSA (or no other Additional PSA) as Seller may elect in its sole and absolute discretion, whereupon Escrow Agent shall promptly
disburse the Earnest Money under this Agreement and each terminated Additional PSA to Purchaser, and the parties shall have no
further rights, duties or obligations hereunder with respect to this Agreement and each terminated Additional PSA, other than
those which are expressly provided herein to survive the termination of this Agreement and/or each terminated Additional PSA,
respectively.

    51 

     

    

 

(b)
Post-Inspection Date Default by Purchaser. If following the Inspection Date, Purchaser fails to acquire the Property in accordance
with the terms and provisions of this Agreement and Purchaser fails to cure such default within the applicable notice and cure
period (a “Purchaser Default”), then Seller
shall have the right to terminate this Agreement pursuant to Section 6.1 hereinabove and any other Additional PSA (or no other
Additional PSA) as Seller may elect in its sole and absolute discretion, whereupon (unless such termination events have occurred
and are continuing which would require reimbursement of all Earnest Money to Purchaser under Sections 2.3, 2.5, 3.2, 4.6, 6.2,
7.1 or 12.2(c)(i)(A) hereof), Escrow Agent shall promptly disburse the Earnest Money to Seller under this Agreement, and the applicable
escrow agent under each terminated Additional PSA shall promptly disburse to the applicable seller all earnest money under each
terminated Additional PSA, and thereafter the parties shall have no further rights, duties or obligations hereunder (or thereunder),
other than those which are expressly provided to survive the termination; provided, however, if Seller elects to so terminate
this Agreement due to a Purchaser Default under an Additional PSA following the Inspection Date, then it must do so by written
notice to Purchaser delivered within two (2) business days after termination of such Additional PSA by the applicable seller thereunder;
provided further, however, if Purchaser's failure to acquire the Property is not caused by a Purchaser default (e.g., (x) a casualty
or condemnation affecting the Property, (y) a failure of Seller to satisfy a condition precedent, which condition is within Seller's
reasonable control and ability to fulfill, or (z) an intentional default by Seller under this Agreement), then the provisions
of this Agreement that govern Purchaser's rights upon the occurrence of such circumstances shall control and neither Seller nor
the sellers under the Additional PSAs shall have the right to terminate this Agreement or an Additional PSA because of Purchaser's
exercise of said rights.

(c)
Post-Inspection Date Default by Seller. If (1) Purchaser does not elect to terminate this Agreement on or before the Inspection
Date and does not elect to terminate an Additional PSA following the applicable "Inspection Date" for such Additional
PSA(s), and (2) after the Inspection Date, Seller defaults under this Agreement beyond any applicable notice and cure period specified
in this Agreement (a “Seller Default”),
then in addition to any and all remedies that may be available to Purchaser under this Agreement, Purchaser may elect to terminate
the Additional PSAs as a result of the Seller Default and receive (i) a refund of all Earnest Money paid under such terminated
Additional PSAs, together with payment from Seller of an amount equal to the lesser of (A) One Hundred Thousand and no/100
Dollars ($100,000.00) for each terminated Additional PSA, or (B) the amount of all direct, third party out of pocket costs and
expenses actually incurred by Purchaser in connection with the terminated Additional PSAs; and (ii) if the Seller Default under
this Agreement is intentional, then in addition to the remedies described in clause (i) above, Purchaser shall also have the right
to receive payment from Seller of money damages in an amount equal to one-half percent (0.50%) of the collective Purchase Price
for this Agreement and the terminated Additional PSAs (provided, however, that if Purchaser elects to so terminate any of the
Additional PSAs, it must do so by written notice to the applicable seller delivered within two (2) business days after termination
of this Agreement).

[Signatures
on following pages.]

    52 

     

    

IN WITNESS WHEREOF,
the parties hereto have duly executed this Agreement as of the Effective Date. 

	 	
        SELLER:

         

        VERANDAS AT MITYLENE, LLC,

        a Delaware limited liability company

	 	 	 	 	 
	 	By:	
        FDC Development JV, LLC,

        a Delaware limited liability company, its sole Member

	 	 	 	 	 
	 	 	By:	
        Flournoy Development Company, LLC,

        a Georgia limited liability company, its Manager

	 	 	 	 	 
	 	 	 	By:	/s/ Thomas H. Flournoy
	 	 	 	 	Thomas H. Flournoy, its President

 

For
the sole purpose of fulfilling its obligations under Section 11.20 of the above Agreement, and no other Section(s) thereof, FDC
JV has executed this Agreement below as of the Effective Date.

 

	 	
        FDC Development JV, LLC,

        a Delaware limited liability company,

        its sole Member

	 	 	 	 
	 	By:	
        Flournoy Development Company, LLC,

        a Georgia limited liability company,

        its Manager

	 	 	 	 
	 	 	By:	/s/ Thomas H. Flournoy
	 	 	 	Thomas H. Flournoy, its President

 

 

[SIGNATURES
CONTINUED ON THE FOLLOWING PAGES]

    	 

    	 

    

 

This
is a signature page to, and may be attached to a master counterpart of, the Purchase and Sale Agreement between Verandas at Mitylene,
LLC, as Seller, and Inland Real Estate Acquisitions, Inc., as Purchaser, with respect to Verandas at Mitylene Apartments.

 

	 	
        PURCHASER:

         

        Inland Real Estate Acquisitions,
        Inc.,

        an Illinois corporation

	 	 	 
	 	By:	/s/ Mark J. Cosenza
	 	Name:	Mark J. Cosenza
	 	Title:	Senior Vice President

 

 

 

 

[SIGNATURES
CONTINUED ON THE FOLLOWING PAGES]

    	 

    	 

    

 

This
is a signature page to, and may be attached to a master counterpart of, the Purchase and Sale Agreement between Verandas at Mitylene,
LLC, as Seller, and Inland Real Estate Acquisitions, Inc., as Purchaser, with respect to Verandas at Mitylene Apartments.

 

Chicago
Title Insurance Company, as Escrow Agent is a party to such Purchase and Sale Agreement for the limited purposes set forth therein.

 

 

Escrow Agent has executed this Agreement
for the limited purposes set forth herein.

 

	 	
        ESCROW AGENT:

         

        CHICAGO TITLE INSURANCE
        COMPANY

	 	 	 
	 	By:	/s/ Katie Van Zuidam
	 	Name:	Katie Van Zuidam
	 	Title:	Escrow Associate

 

  

    	 

    	 

    

Schedule
1.1(a)

LEGAL
DESCRIPTION OF THE LAND

 

    	 

    	 

    

 

Schedule
1.1(d)

INVENTORY
OF TANGIBLE PERSONAL PROPERTY

SEE
ATTACHED

 

    	 

    	 

    

 

Schedule
1.1(e)

RENT
ROLL

SEE
ATTACHED

 

    	 

    	 

    

 

Schedule
1.6(a)

EARNEST
MONEY WIRING INSTRUCTIONS

SEE
ATTACHED

 

    	 

    	 

    

 

 

Schedule
3.1(a)

Due
Diligence Documents

SEE ATTACHED

    	 

    	 

    

 

Schedule
4.2(a)

FORM
OF STATUTORY WARRANTY DEED

SEE ATTACHED

    	 

    	 

    

 

	This instrument was prepared by:	 	Send Tax Notice to:
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

	STATE OF ALABAMA	)
	COUNTY OF __________	)

 

STATUTORY
WARRANTY DEED

 

KNOW
ALL MEN BY THESE PRESENTS, 

 

THAT
IN CONSIDERATION of the Ten Dollars ($10.00) and other valuable consideration in hand paid by ________________________,
a _____________________ (hereinafter referred to as the “Grantee”) to Verandas at Mitylene, a Delaware
limited liability company (hereinafter referred to as the “Grantor”), the receipt and sufficiency of which
are hereby acknowledged, Grantor does by these presents, grant, bargain, sell and convey unto the Grantee, all those certain tracts
or lots of land lying in Montgomery County, Alabama, and more particularly described on Exhibit “A” attached
hereto and incorporated herein by reference, subject, however, to the permitted exceptions described on Exhibit “B”
attached hereto and incorporated herein by reference (the “Permitted Exceptions”).

 

TOGETHER
WITH all appurtenances thereto belonging or in anywise appertaining and all right, title and interest of Grantor in and to
any and all roads, alleys and ways bounding said Property.

TO HAVE
AND TO HOLD, to the said Grantee, its successors and assigns forever.

Grantor
hereby covenants and agrees with Grantee, its successors and assigns, that the Grantor, its heirs, successors and assigns, will
warrant and defend the above described Property against the lawful claims (unless otherwise noted above) of all persons claiming
by, through, or under the Grantor, but not further or otherwise.

 

[$_______
of the consideration for this Deed is secured by a mortgage executed and filed for record simultaneously herewith, and on which
mortgage tax under Section 40-22-2 of the Alabama Code is being paid].

 

Pursuant to the
provisions of Alabama Code § 40-2201 (1975), the following information is offered in lieu of submitting Form RT-1:

 

Grantor’s Name and
Mailing Address:                          Grantee’s Name and Mailing Address:

 

Verandas at Mitylene                                                     IRESI
Montgomery Mitylene, LLC

c/o Flournoy Development Company,
LLC                   c/o Inland Real Estate Acquisitions, Inc.

900 Brookstone Centre Parkway                                    2901 Butterfield Road

Columbus, GA 31904                                                     Oak
Brook, IL 60523

Attention: Jeremy Brewer,
Esq.                                      Attention: Brett Smith, Esq.

 

Property Address:       8850
Crosswind Drive, Montgomery, AL 36117

Purchase Price:           $36,403,542.00

     

     

    

IN WITNESS WHEREOF,
the Grantor has caused this Statutory Warranty Deed to be executed as of the _________ day of ___________, 201__.

 

 

	 	
        GRANTOR:

         

	 	a	 
	 	 	 
	 	By:	 
	 	 	 	 	 
	 	 	Its:	 

 

 

	STATE OF ____________	)
	COUNTY OF __________	)

 

 

I, the
undersigned authority, a Notary Public in and for said county in said state, hereby certify that _____________________, whose
name as _______________ of ___________________________, a _____________________, is signed to the foregoing conveyance
and who is known to me, acknowledged before me on this day that, being informed of the contents of the said conveyance, s/he,
as such officer and with full authority, executed the same voluntarily for and as the act of said ________________.

 

Given under my hand
and official seal, this the _____ day of ______________, 201_.

 

 

	 	 	 
	 	
        Notary Public

        My Commission Expires:
	 

 

 

    	 

    	 

    

 

Exhibits
to Statutory Warranty Deed

A - Legal
Description of Land

B
- Permitted Exceptions 

    	 

    	 

    

 

EXHIBIT
A

Legal
Description of the Land

    	 

    	 

    

 

Schedule
4.2(b)

BILL
OF SALE AND ASSIGNMENT AND ASSUMPTION

OF LEASES AND SERVICE CONTRACTS

This
Bill of Sale and Assignment and Assumption of Leases and Service Contracts (this "Agreement") is made and entered
into this ____ day of _____, 2017, by and between Verandas at Mitylene, LLC, a Delaware limited liability company ("Seller"),
and ___________________, a ___________ ("Purchaser").

W
I T N E S S E T H:

WHEREAS,
Seller and Purchaser have previously entered into that certain Purchase and Sale Agreement, dated _____, 2017 [DESCRIBE AMENDMENTS,
IF APPLICABLE] (the "Contract"), having [NAME OF ESCROW AGENT] as party for the limited purposes set forth therein;

WHEREAS,
concurrently with the execution and delivery of this Agreement and pursuant to the Contract, Seller is conveying to Purchaser,
by Statuory Warranty Deed, (i) those certain tracts or parcels of real property located in Montgomery, Montgomery County, Alabama,
and more particularly described on Exhibit A, attached hereto and made a part hereof (the "Land"), (ii)
the rights, easements and appurtenances pertaining to the Land (the "Related Rights"), and (iii) the buildings,
structures, fixtures and other improvements on and within the Land (the "Improvements"; and the Land, the Related
Rights and the Improvements being sometimes collectively referred to as the "Real Property");

WHEREAS,
Seller has agreed to convey to Purchaser certain personal property and assign to Purchaser certain leases and service contracts
as hereinafter set forth;

NOW,
THEREFORE, in consideration of the receipt of Ten Dollars ($10.00), the assumptions by Purchaser hereinafter set forth and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser agree as follows:

1.                 
Bill of Sale:

(a)       Seller
hereby sells, assigns, transfers and conveys to Purchaser all of Seller's right, title and interest in, to and under the Tangible
Personal Property and the Intangible Property. Seller warrants to Purchaser that Seller owns good title to the Tangible Personal
Property, that the Tangible Personal Property is free and clear of all liens, charges and encumbrances other than the Permitted
Exceptions (as defined in the Contract), and that Seller has full right, power and authority to sell the Tangible Personal Property
and to make this Bill of Sale. Seller further warrants to Purchaser that Seller has not conveyed to any third party its right,
title and interest, if any, in the Intangible Property.

    	 

    	 

    

 

(b)       "Tangible
Personal Property" means all tangible personal property owned by Seller upon the Land or within the Improvements, including
specifically, without limitation, appliances, equipment, furniture, furnishings, carpeting, draperies and curtains, tools and
supplies, and other items of tangible personal property owned by Seller and used exclusively in connection with the ownership,
use, maintenance or operation of the Land and the Improvements, and including those items of tangible personal property identified
on Exhibit B, attached hereto and made a part hereof by this reference; provided, however, that the Tangible Personal Property
does not include the following items: (i) cash and cash equivalents, and any reserves or other deposits funded or made in connection
with any financing encumbering the Property, (ii) computer software and computer files, (iii) any time clock(s), (iv) personal
property owned by tenants under the Leases, (v) any equipment installed by, or in connection with, any telecommunication or utility
provider and which is owned by a party other than Seller, (vi) any items owned by employees of Seller or any property manager,
(vii) any items leased to Seller, (viii) any digital voice receivers used in connection with recorded music at the Property, and
(ix) all brochures, advertising copy, promotional materials, manuals, reports, portfolios, binders, training materials and other
items on which the name "Flournoy" appears.

(c)       "Intangible
Property" means (i) all assignable existing warranties and guaranties issued to or inuring to the benefit of Seller in connection
with the Improvements or the Tangible Personal Property; (ii) all governmental permits, licenses and approvals, if any, belonging
to or inuring to the benefit of Seller and pertaining to the Real Property or the Tangible Personal Property, but only to the
extent that such permits, licenses and approvals are assignable, and only to the extent that such permits, licenses and approvals
relate to the Real Property or the Tangible Personal Property, as opposed to other property of Seller or its affiliates; (iii)
resident and tenant files for current residents and tenants as of the Closing Date, (iv) architectural and civil plans and specifications
(to the extent in Seller's possession but excluding any right to reproduce or otherwise use such plans or specifications for future
development); (v) the right to use the name "Verandas at Mitylene Apartments"; (vi) all assignable telephone
numbers, URLs and website domain names associated with the Real Property including but not limited to the right, at Purchaser's
expense, to use www.verandasmontgomery.com for a period of one (1) year after the Closing solely for the purpose of forwarding
visitors to Purchaser's website for the Real Property; but excluding any rights in or to the use of the name "Flournoy";
(vii) all logos, works of art, graphic designs and all videos and photos owned and used by Seller in connection with the Real
Property; provided that the item listed in this clause (vii) does not use or display the name "Flournoy" and (viii)
other non-confidential and non-proprietary records owned by Seller and used in connection with the operation of the Real Property
or any part thereof, and located on-site as of the Closing Date, (the property described in this subparagraph 1(c), other than
the excluded items, being sometimes herein referred to collectively as the "Intangible Property").

    	 

    	 

    

 

2.                 
Assignment and Assumption of Leases:

(a)       Seller
hereby sells, assigns, transfers and conveys to Purchaser all of Seller's right, title and interest as landlord in, to and under
all rental agreements, leases and other agreements in effect as of the date of this Agreement demising space in or providing for
the use or occupancy of the Real Property (the "Leases"), together with any and all unapplied refundable tenant
security and other unapplied refundable deposits in Seller's possession with respect to the Leases as of the date of this Agreement
(collectively, the "Deposits"). The assignment of the Deposits has been made by means of a credit or payment
on the closing statement executed by Seller and Purchaser.

(b)       Purchaser
hereby assumes, and hereby covenants and agrees to fully and faithfully perform, observe and comply with, all of the covenants,
agreements, conditions and other terms and provisions stated in the Leases which, under the terms of the Leases, are to be performed,
observed, and complied with by the landlord from and after the date of this Agreement. Purchaser acknowledges that Purchaser shall
become solely responsible and liable as landlord under the Leases for obligations arising or accruing from and after the date
hereof.

(c)       Seller
shall indemnify, hold harmless and defend Purchaser from and against any and all claims, demands, causes of action, liabilities,
losses, costs, damages and expenses (including reasonable attorneys' fees and expenses and court costs incurred in defending any
such claim or in enforcing this indemnity) that may be incurred by Purchaser by reason of the assertion by any tenant under any
of the Leases that Seller has failed to perform, observe and comply with its obligations as landlord under any of the Leases during
the period before the date hereof, other than with respect to the Deposits (to the extent paid or assigned to Purchaser or for
which Purchaser has received a credit or payment at Closing).

(d)       Purchaser
shall indemnify, hold harmless and defend Seller from and against any and all claims, demands, causes of action, liabilities,
losses, costs, damages and expenses (including reasonable attorneys' fees and expenses and court costs incurred in defending any
such claim or in enforcing this indemnity) that may be incurred by Seller by reason of the failure of Purchaser to perform, observe
and comply with the landlord's obligations under any of the Leases arising or accruing during the period from and after the date
hereof, including without limitation, claims made by tenants with respect to the Deposits, whether arising before, on or after
the date hereof (to the extent paid or assigned to Purchaser or for which Purchaser has received a credit or payment at Closing).

(e)       equivalent
party under any of the Leases, and the word "tenant" means the tenant, lessee or other equivalent party under any of
the Leases.

    	 

    	 

    

 

3.                 
Assignment and Assumption of Service Contracts:

(a)       Seller
hereby sells, assigns, transfers and conveys to Purchaser all of Seller's right, title and interest in, to and under those service,
supply, equipment rental and similar agreements set forth on Exhibit C, attached hereto and made part hereof by this reference
(the "Service Contracts").

(b)       Purchaser
hereby assumes, and hereby covenants and agrees to fully and faithfully perform, observe and comply with, all of the covenants,
agreements, conditions and other terms and provisions stated in the Service Contracts which, under the terms of the Service Contracts,
are to be performed, observed, and complied with by the property owner from and after the date of this Agreement. Purchaser acknowledges
that Purchaser shall become solely responsible and liable under the Service Contracts for obligations arising or accruing from
and after the date hereof, including with respect to any and all payments coming due under the Service Contracts for which Purchaser
has received a credit or payment on the closing statement executed by Purchaser and Seller (the "Credited Payments").

(c)       Seller
shall indemnify, hold harmless and defend Purchaser from and against any and all claims, demands, causes of action, liabilities,
losses, costs, damages and expenses (including reasonable attorneys' fees and expenses and court costs incurred in defending any
such claim or in enforcing this indemnity) that may be incurred by Purchaser by reason of the assertion by any other contract
party under any of the Service Contracts that Seller has failed to perform, observe and comply with its obligations under any
of the Service Contracts during the period before the date hereof, other than with respect to the Credited Payments (to the extent
paid or assigned to Purchaser or for which Purchaser has received a credit or payment at Closing).

(d)       Purchaser
shall indemnify, hold harmless and defend Seller from and against any and all claims, demands, causes of action, liabilities,
losses, costs, damages and expenses (including reasonable attorneys' fees and expenses and court costs incurred in defending any
such claim or in enforcing this indemnity) that may be incurred by Seller by reason of the failure of Purchaser to perform, observe
and comply with its obligations under any of the Service Contracts arising or accruing during the period from and after the date
hereof, including without limitation, claims made by any other contract party with respect to the Credited Payments, whether arising
before, on or after the date hereof (to the extent paid or assigned to Purchaser or for which Purchaser received a credit or payment
at Closing).

4.                 
Qualifications. This Agreement is subject to the Permitted Exceptions (as defined in the Contract). This Agreement
is also subject to those provisions of the Contract limiting Seller's liability to Purchaser, including but not limited to Article
9 of the Contract.

    	 

    	 

    

 

5.                 
Counterparts. This Agreement may be executed in two or more identical counterparts, and it shall not be necessary
that any one of the counterparts be executed by all of the parties hereto. Each fully or partially executed counterpart shall
be deemed an original, but all of such counterparts taken together shall constitute one and the same instrument.

6.                 
Successors and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the successors, executors,
administrators, legal representatives and assigns of the parties hereto.

7.                 
Governing Law. This Agreement shall be construed under and enforced in accordance with the laws of the State of
Alabama.

EXECUTED
effective as of the date first above written.

	 	
        SELLER:

         

	 	a	 
	 	 	 
	 	By:	 
	 	 	a	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

 

 

	 	
        PURCHASER:

         

	 	a	 
	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

    	 

    	 

    

 

Exhibits
to Bill of Sale and Assignment

A
- Legal Description of Land

B
- Inventory of Tangible Personal Property

C
- List of Designated Service Contracts

 

    	 

    	 

    

 

EXHIBIT
4.2(c)

“TENANT
NOTICE ”

________________,
___________

RE:Notice
of Change of Ownership of Verandas at Mitylene Apartments

Dear
Tenants:

As
of the date hereof, __________________________________, a Delaware limited liability company (the “Seller”) has transferred,
sold, assigned, and conveyed all of its interest in and to the above-described property, (the “Property”) to ____________________________
(the “New Owner”). After today, New Owner will be responsible for all obligations of the “landlord” or
“lessor” under your lease.

Future
notices and rental payments with respect to your lease premises at the Property should be made to the New Owner in accordance
with your lease terms at the following address:

________________________

________________________

________________________

On
behalf of Flournoy Properties, we want to thank you for making Verandas at Mitylene Apartments your home. It has been our
pleasure to serve you. Any future inquiries regarding your lease should be directed to the Purchaser at the contact information
listed above. If you have any questions regarding any of this information, please contact the New Owner.

 

	 	Very truly yours,
	 	 

                    Seller:

	 	
	 	a	 
	 	 	 
	 	 	By:	 
	 	 	Print Name:	 
	 	 	Its:	 

 

 

	 	 

                    New Owner:

	 	
	 	a	 
	 	 	 
	 	 	By:	 
	 	 	Print Name:	 
	 	 	Its:	 

 

    	 

    	 

    

Schedule
4.2(d)

Seller's
Closing Certificate

THIS
CERTIFICATION is made as of _____________, 20__, by Verandas at Mitylene, a Delaware limited liability company ("Seller"),
in favor of _______________________, a __________ ("Purchaser").

Seller
hereby certifies to Purchaser that the representations and warranties of Seller set forth in Section 5.1 of that certain
Purchase and Sale Agreement between Seller and _________________________ [if applicable: as amended] (the "Agreement")
dated as of __________, 20__, as amended, are true and correct in all material respects as of the date hereof, except as to:

(a)       The
Rent Roll attached hereto as Exhibit A replaces the Rent Roll attached to the Agreement as Schedule 1.3; and

(b)       [If
applicable: The items disclosed on Exhibit B attached hereto replace Seller's Disclosure Schedule attached to the Agreement as
Schedule 5.1].

The
representations and warranties set forth in Section 5.1 of the Agreement, as updated by this Certificate of Seller's Representations
and Warranties, will survive only for a period of ______________ from the date hereof.

This
certificate is delivered pursuant to Section 4.2(d) of the Agreement, and Seller's liability hereunder is subject to Section
5.3 of the Agreement, including the Cap as defined therein.

	 	
         

	 	a	 
	 	 	 
	 	By:	 
	 	 	a	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	Print Name:	 	 
	 	 	Title:	 	 

 

 

    	 

    	 

    

 

Exhibits
to Seller's Closing Certificate

Exhibit
A -- Updated Rent Roll

Exhibit
B -- Additional Items for Seller's Disclosure Schedule [if applicable]

 

    	 

    	 

    

 

Schedule
5.1

SELLER'S
DISCLOSURE STATEMENT

NONE

 

    	 

    	 

    

 

Schedule
5.7(b)

SCHEDULE
OF MUST TAKE SERVICE CONTRACTS

 

Knology (Resident
Cable, Internet, Telephone)

Montgomery Water
(Waste Water)

Valet Waste (Trash
Removal)

Cort Furniture (Rental
Furniture for Corporate Apartments Based on Leases)

    	 

    	 

    

 

Schedule 12.1

 

ADDITIONAL PSAs

 

and

ADDITIONAL
PROPERTIES

 

1.       Purchase
And Sale Agreement, dated, as of May 25, 2017 (the "Effective Date"), by and between Verandas at Taylor Oaks,
LLC, a Delaware limited liability company, and Inland Real Estate Acquisitions, Inc., an Illinois corporation,
pertaining to the sale of the Verandas at Taylor Oaks apartments located at 7701 Taylor Oaks Dr., Montgomery, AL 36116.

 

 

2.       Purchase
And Sale Agreement, dated, as of May 25, 2017 (the "Effective Date"), by and between The Haven at Commons
Park, a Delaware limited liability company, and Inland Real Estate Acquisitions, Inc., an Illinois corporation,
pertaining to the sale of the Verandas at Taylor Oaks apartments located at 7477 Commons Blvd., Chattanooga, TN 37421.

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