Document:

EX-10.3

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 Exhibit 10.3 

PURCHASE AND SALE AGREEMENT 

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) dated as of the date the last of Seller or Buyer to this Agreement
executes the same (the “Effective Date”), by and between FRED’S INC., a Delaware corporation (the “Seller”), and PERRY ELLIS INTERNATIONAL, INC, a Florida corporation (the
“Buyer”) or assignee or designee thereof. 
 WHEREAS, on September 9, 2019 (the “Petition
Date”), Seller and its affiliates (the “Debtors”) filed voluntary petitions for relief under the chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy
Court”), commencing cases (the “Chapter 11 Cases”) which are being jointly administered under the caption In re Fred’s, Inc., No. 19-11984 (CSS); and 

WHEREAS, Seller is continuing to manage its properties and operate its business as a debtor-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with applicable provisions of the Bankruptcy Code; and 

WHEREAS, Seller’s ability to consummate the transactions set forth in this Agreement is subject to the Order
(I) Establishing Procedures for the Sale of Debtors’ Real Estate Assets, (II) Authorizing the Debtors to Retain and Compensate Real Estate Brokers in Connection Therewith, (III) Approving Stalking Horse Bid Protections and
(IV) Granted Related Relief dated September 27, 2019 (“Bidding Procedures Order”), entered by the Bankruptcy Court, entry of a final order approving any transaction (as contemplated in the Bidding Procedures Order) (a
“Sale Order”) and the requirements generally applicable to Bankruptcy debtors, including debtors’ obligations to consider higher or better offers (the Bidding Procedures Order, the Sale Order and operation of applicable U.S.
Bankruptcy law collectively, hereinafter “Bankruptcy Requirements”; and 
 WHEREAS, Buyer desires to purchase the Property
(as defined below) from Seller, and Seller desires to sell, convey, and transfer to Buyer the Property in a sale authorized by the Bankruptcy Court pursuant to, inter alia, sections 105 and 363 of the Bankruptcy Code, all on the terms and
subject to the conditions set forth in this Agreement and the Bidding Procedures Order and any additional terms that may be included in a Sale Order; and 

WHEREAS, the Property shall be conveyed to Buyer pursuant to the Sale Order free and clear of liens, claims, interests, or encumbrances
(collectively, the “Interests”), pursuant to Sections 105 and 363 of the Bankruptcy Code, and Rules 6004 and 6006 of the Federal Rules of Bankruptcy Procedure, all in the manner and subject to the terms and conditions set forth in
this Agreement and the Sale Order and in accordance with other applicable provisions of the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure and the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court
for the District of Delaware. 
 NOW THEREFORE, Buyer and Seller hereby agree as set forth below: 

  
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PSA (Dublin, Georgia) 

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 1. SALE AND PURCHASE. 

Subject to the Bankruptcy Requirements, Seller agrees to sell, assign, transfer and convey to Buyer, and the Buyer agrees to purchase from
Seller all of Seller’s right, title and interest in and to the following: 
 (a) All of that certain tract or parcel of land located at
2815 GA Highway 257; Dublin, Georgia 31021, with the tax parcel number as described on Exhibit “A” attached hereto and by this reference made a part hereof; and 

(b) All of Seller’s right, title and interest in and to any improvements, appurtenances, rights, easements, rights-of-way, tenements and hereditaments incident thereto, and to all strips and any land lying in the bed of any street, if any, including fixtures and all equipment
(including, for avoidance of doubt, all racking and conveyor equipment and any other equipment located on the Property as of October 26, 2019), but excluding personal property of Seller that is not specified above. 

The property described in subsections 1(a) and 1(b) is collectively referred to herein as the “Property.” 

2. PURCHASE PRICE AND PAYMENT. 
 (a) In
consideration of the conveyance of the Property to Buyer, Buyer shall pay to Seller the sum of fourteen million, six hundred thousand and No/100 Dollars ($15,700,000.00) (the “Purchase Price”). 

(b) Upon execution of this Agreement, Buyer shall pay to First American Title Insurance Company (the “Escrow Agent” or
“Title Company”), by wire transfer pursuant to the wiring instructions on Exhibit “B” attached hereto and by this reference made a part hereof, the sum of one million, five hundred seventy thousand and No/100
Dollars ($1,570,000.00) as an earnest money deposit, amounting to 10% of the Purchase Price. Such sum, together with any interest earned thereon and any additions thereto are hereinafter collectively referred to as the
“Deposit.” The Escrow Agent may, if possible, but shall not be required to, invest such sum in interest bearing obligations of a national bank or banking association in the area in which Escrow Agent is located. The Deposit shall
not become property of the Debtors absent a further order of the Bankruptcy Court that Buyer is not entitled to a return of its deposit, provided, however, that the Deposit shall be applied as a credit to Buyer against the Purchase Price in
the event the sale contemplated hereby is consummated. Buyer agrees to sign all forms required in connection with Escrow Agent’s holding and investing the Deposit, such as IRS and bank account forms and reports, and for such purposes the
Deposit shall be considered the property of Buyer until such time as Escrow Agent disburses the Deposit to another party. The preceding sentence shall not change in any way the other provisions in this Agreement concerning Escrow Agent’s
holding and disbursing the Deposit. 
 (c) Notwithstanding anything to the contrary contained herein, One Hundred Dollars ($100.00) of the
Deposit (the “Independent Consideration”) is non-refundable to Buyer 

  
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upon deposit with the Escrow Agent, is fully earned by Seller for entering into this Agreement, and shall be paid to Seller at Closing (as defined below) or the earlier termination of this
Agreement. The Independent Consideration shall be applied against the Purchase Price at Closing, if any. 
 (d) The Purchase Price (less
credit for the Deposit which shall be paid to Seller at Closing, and any adjustments for any pro-rations and expenses as provided in this Agreement) shall be paid by wire transfer to Seller at Closing. 

3. PROPERTY CONVEYED “AS IS.” 

OTHER THAN AS EXPRESSLY STATED TO THE CONTRARY IN THIS AGREEMENT, IT IS UNDERSTOOD AND AGREED THAT SELLER DISCLAIMS ALL WARRANTIES OR
REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OR REPRESENTATIONS AS TO MATTERS OF TITLE, ZONING, TAX CONSEQUENCES, PHYSICAL OR ENVIRONMENTAL CONDITIONS,
AVAILABILITY OF ACCESS, INGRESS OR EGRESS, PROPERTY VALUE, OPERATING HISTORY, GOVERNMENTAL APPROVALS, GOVERNMENTAL REGULATIONS OR ANY OTHER MATTER OR THING RELATING TO OR AFFECTING THE PROPERTY. BUYER AGREES THAT WITH RESPECT TO THE PROPERTY, BUYER
HAS NOT RELIED UPON AND WILL NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY, ANY REPRESENTATION OR WARRANTY OF SELLER OR OF SELLER’S BROKERS, AGENTS OR EMPLOYEES. BUYER REPRESENTS THAT IT IS A KNOWLEDGEABLE BUYER OF REAL ESTATE AND THAT IT IS
RELYING SOLELY ON ITS OWN EXPERTISE AND THAT OF BUYER’S CONSULTANTS, AND THAT BUYER WILL CONDUCT SUCH INSPECTIONS AND INVESTIGATIONS OF THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AND SHALL
RELY UPON SAME, AND, UPON CLOSING, SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING, BUT NOT LIMITED TO, ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY BUYER’S INSPECTIONS AND INVESTIGATIONS. BUYER
ACKNOWLEDGES AND AGREES THAT UPON CLOSING, SELLER SHALL SELL AND CONVEY TO BUYER AND BUYER SHALL ACCEPT THE PROPERTY “AS IS, WHERE IS”, WITH ALL FAULTS, AND THERE ARE NO ORAL AGREEMENTS, WARRANTIES OR REPRESENTATIONS COLLATERAL TO OR
AFFECTING THE PROPERTY BY SELLER OR ANY THIRD PARTY. THE TERMS AND CONDITIONS OF THIS SECTION 3 SHALL EXPRESSLY SURVIVE THE CLOSING. 
 4.
SURVEY. 
 The Property is being sold AS IS with all faults. Buyer, at Buyer’s expense, may have the Property surveyed and
certified by a registered land surveyor in accordance with applicable statutes. 

  
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 5. TITLE. 

Subject to the Bankruptcy Requirements, Seller shall convey title to the Property by limited warranty deed subject to (i) ad valorem
taxes and assessments not yet due and payable, (ii) zoning and other ordinances affecting the Property, (iii) all matters which would be shown by a current accurate survey and inspection of the Property, and (iv) all matters of record
(the foregoing items (i) – (iv), subject to Buyer’s right to object thereto as provided below, being hereinafter referred to collectively as the “Permitted Title Exceptions”)). Subject to the Sale Order, with the exception
of the Permitted Title Exceptions, title to the Property shall be good and marketable and such as will be insured by the Title Company at its regular rates for regular risks pursuant to the standard stipulations and conditions of an ALTA policy of
owner’s title insurance. Prior to Closing, Buyer shall obtain from the Title Company and deliver to Seller an owner’s title insurance commitment for the Property and may notify Seller in writing of any valid objections to the Permitted
Title Exceptions. In the event Buyer does not notify Seller of any unacceptable defects in the Permitted Title Exceptions, Buyer shall have waived the right to object to same, and shall have agreed to accept title subject to the Permitted Title
Exceptions. In the event Buyer notifies Seller of any defects to the Permitted Title Exceptions, Seller shall notify Buyer within five (5) business days after receipt of Buyer’s Objection Notice as to which title defects Seller shall cure
or refuse to cure; provided, in no event shall Seller be obligated to cure any such defects other than monetary liens (including, without limitation, the Interests to be removed pursuant to the Sale Order). If Seller fails to give Buyer written
notice as to which title defects Seller shall cure or refuse to cure, Seller shall be deemed to have refused to cure such title defects. Buyer shall have one business day from receipt (or deemed receipt) of Seller’s notice in which to elect to
accept the Property subject to such matters without deduction from the Purchase Price, or to decline to accept the Property in which event the Deposit (less the Independent Consideration) shall be returned to Buyer, and this Agreement shall
terminate, and the parties shall have no further obligations hereunder, except as to matters which expressly survive as set forth in this Agreement. If Buyer fails to give Seller written notice of Buyer’s election by the end of said one
(1) business day period, then Buyer shall be deemed to have elected to accept the Property subject to the Permitted Title Exceptions without deduction from the Purchase Price. If Seller satisfies all such title defects that Seller has agreed to
satisfy prior to Closing, then the transaction contemplated hereby shall be closed in accordance with its terms. If Seller does not satisfy all such title defects that Seller has agreed to satisfy on or before the Closing, then Buyer shall have the
right to elect on or before the date of Closing either: (i) not to close the transaction contemplated hereby in which event the Deposit (less the Independent Consideration) shall be refunded to Buyer, this Agreement shall terminate, and the
parties shall have no further obligations hereunder, except as to matters which expressly survive as set forth in this Agreement, or (ii) to close the transaction contemplated hereby without regard to such unsatisfied defects and encumbrances,
in which event the transaction contemplated hereby shall be closed in accordance with its terms, without a reduction in Purchase Price. The provisions of this Section 5 shall survive the Closing. 

6. COVENANTS AND CONDITIONS OF SETTLEMENT. 

  
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PSA (Dublin, Georgia) 

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 On the date of Closing, Seller shall execute and deliver a limited warranty deed (the
“Deed”) to Buyer substantially in the form attached hereto as Exhibit “C”. Seller and/or Buyer shall execute closing statements, a FIRPTA certificate, a Seller’s Affidavit substantially in the form attached
hereto as Exhibit “D”, and such other documents as may be reasonably required to complete Closing and accomplish transfer of the Property to Buyer hereunder (including, without limitation a bill of sale and general assignment of
intangible rights without representations or warranties) and to enable the Title Company to issue the owner’s title insurance policy to Buyer. 
 7.
FURTHER ENCUMBRANCES. 
 Seller hereby covenants and agrees that from and after the Effective Date until the earlier of the
termination of this Agreement or the date of Closing, that Seller shall operate and maintain and keep the Property in a manner consistent with Seller’s past practices with respect to the Property and Seller shall not, without the prior written
consent of Buyer (not to be unreasonably withheld, conditioned or delayed), grant or otherwise voluntarily create or consent to the creation of any easement, restriction, lien, lease, service contract or encumbrances affecting the Property. 

8. CLOSING AND CLOSING DATE. 
 Subject to
the entry of, and provisions of, the Sale Order, which Sale Order shall be in a form and substance acceptable to the Buyer in its sole direction, and Section 36 of this Agreement, the consummation of this sale by Seller and the purchase by
Buyer of the Property (the “Closing”) shall be held on or before 5:00 p.m. Eastern Standard Time on or before November 22, 2019, at a time and place selected by the parties (the “Closing Date”), but if none is
selected in escrow with the Escrow Agent. 
 9. APPORTIONMENTS. 

Except as otherwise set forth below, Seller shall be responsible for the payment of any title clearance costs. Seller shall be responsible for
the payment of all ad valorem taxes and assessments applicable to the Property applicable to the period prior to the Closing Date. If after Closing any city, county, or state level taxing authority issues or remits to Buyer any refunds, repayments
of taxes, or corrected tax billings that reduce the tax obligation for any periods of time that the Property was under the ownership and control of Seller and for which Seller has paid or been charged for the taxes, Buyer shall remit or refund those
monies back to Seller for its pro-rated period of ownership. Buyer shall cooperate with Seller by providing to Seller any documentation or evidence of such tax reductions or other reasonably requested
materials that Buyer has in its records or receives. The provisions of this Section 9 shall survive the Closing. 
 10. CLOSING COSTS.

 Seller shall pay Seller’s attorneys’ fees. Buyer shall pay the cost of Buyer’s inspections, the cost to record the Deed
and any deed tax associated with recording the Deed any other recording fees for the sale or Buyer’s loan, any sales taxes, the cost of the survey (if any), the title examination costs, the owner’s and lender’s title insurance premium
and the cost of any 

  
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PSA (Dublin, Georgia) 

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 endorsement to the title policies, any charges for the Escrow Agent, Buyer’s attorneys’ fees, and
any other charges incurred by Buyer. The provisions of this Section 10 shall survive the Closing. 
 11. BROKERS. 

(a) Seller has employed and/or dealt with Binswanger Southern Company (the “Seller’s Broker”) in connection with this
transaction. At Closing, if and only if this transaction is consummated, Seller shall pay the Seller’s Broker its commission, subject to the Sale Order. Buyer shall have no liability to the Seller or the Seller’s Broker for this
commission. 
 (b) Seller and Buyer each warrant and represent to the other that, with the exception of the Seller’s Broker and
Buyer’s Broker identified herein or identified as set forth above, such party has not employed or dealt with a real estate broker or agent in connection with the transaction contemplated hereby. Seller and Buyer covenant and agree, each to the
other, to indemnify the other against any loss, liability, costs, claims, demands, damages, causes of action, and suits arising out of or in any manner related to the alleged employment or use by the indemnifying party of any real estate broker or
agent other than the Seller’s Broker and Buyer’s Broker identified herein. 
 This Section 11 shall survive the
Closing and any termination of this Agreement. 
 12. REMEDIES 

Subject to the Bankruptcy Requirements, in the event that Seller fails to comply with or perform any of the covenants, agreements or
obligations to be performed by Seller under the terms and provisions of this Agreement, then the Buyer shall be entitled to elect, as its sole and exclusive remedy (i) to terminate this Agreement, upon which the Deposit shall be refunded to
Buyer, and the parties shall have no further rights hereunder, except as to matters which expressly survive as set forth in this Agreement or (ii) to seek specific performance of this Agreement, provided any action for specific performance is
brought within sixty (60) days of the alleged default. Buyer waives any and all other remedies it may have in law and/or in equity. Under no circumstances shall Buyer be entitled to sue Seller or any of Seller’s principals, officers,
partners or members for damages, and Buyer specifically hereby waives the right to sue, and covenants not to sue, Seller or any of Seller’s principals, officers, partners or members for damages. Buyer acknowledges that Buyer’s agreements
in this Section 12 are a material inducement for Seller to enter into this Agreement and without which Seller would not have entered into this Agreement. 

Unless excused by the Bankruptcy Requirements, if the Buyer shall fail to make any payment or deposit when due or to comply with or perform
any of the covenants, agreements, or obligations to be performed by Buyer under the terms and provisions of this Agreement and such failure is not cured within five (5) business days following receipt of written notice from Seller, then Seller
shall, as its sole and exclusive remedy, have the right to terminate this Agreement and receive the Deposit as full liquidated damages. In view of the difficulty of accurately estimating Seller’s actual damages in the event of a default
hereunder by Buyer, and in recognition that it is 

  
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impossible more precisely to estimate the damages to be suffered by Seller upon a default by Buyer, the parties have agreed that the Deposit shall be paid to Seller not as a penalty, but as full
liquidated damages pursuant to applicable law; furthermore, such amount constitutes a good faith and reasonable estimate of the potential damages arising from a default by Buyer hereunder. 

Nothing in this Section 12 shall limit a party’s indemnification obligations under this Agreement. The provisions of this
Section 12 shall survive Closing. 
 13. NOTICES. 

All notices, demands, requests and other communications hereunder shall be in writing and shall be deemed to have been given if delivered
personally, or delivered by overnight courier, or mailed by first class, registered or certified mail, return receipt requested, postage prepaid, or delivered by email (provided that a notice delivered by email shall promptly thereafter be delivered
by one of the other methods permitted in this Section 13), as follows: 
  

			
	in the case of Seller:	  	Fred’s Stores of Tennessee, Inc.
		  	2001 Bryan Street, Suite 1150
		  	Dallas, TX 75201
		  	Attn: Kenny Lipschutz
		  	Telephone: 914-980-9685
		  	Email: klipschutz@fredsinc.com
		
	with a copy to Seller’s attorneys:	  	Kasowitz Benson Torres LLP
		  	1633 Broadway
		  	New York, New York 10019-6799
		  	Attn: Adam L. Shiff and Robert M. Novick
		  	Email: ashiff@kasowitz.com
		  	            rnovick@kasowitz.com
		
	and:	  	
		  	Bradley Arant Boult Cummings LLP
		  	One Federal Place
		  	1819 5th Ave North
		  	Birmingham, AL 35203
		  	Attn: Dawn Helms Sharff
		  	Telephone: 205-521-8200
		  	Email: dsharff@bradley.com
		
	in the case of Buyer:	  	
		  	Perry Ellis International, Inc.
		  	Attn: Tricia McDermott Thompkins
		  	Telephone:(305) 873 1735

  
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		  	 Email: tricia.thompkins@pery.com

		
	with a copy to Buyer’s	  	
	attorney:	  	Olshan Frome Wolosky LLP
		  	1325 Avenue of the Americas
		  	Attn: Adam H. Friedman, Esq. & Jonathan T. Koevary, Esq.
		  	Telephone:(212) 451-2300
		  	Email: jkoevary@olshanlaw.com
		
	in the case of Escrow	  	
	Agent:	  	First American Title Insurance Company
		  	6 Concourse Parkway, NE Suite 2000
		  	Atlanta, Georgia 30328
		  	Attn: Angie Yarbrough
		  	Telephone: (770) 390-6513
		  	Email: ayarbrough@firstam.com

 or at such other address as the party may specify from time to time by written notice to the other party. Any such notice,
request, consent or other communication shall be deemed received at such time as it is actually delivered (if personally delivered) or sent by e-mail (if delivered by e-mail), on the first business day
following an overnight delivery, or on the fifth business day after a mailing, as the case may be. Rejection or other refusal by the addressee to accept, or the inability of a party to deliver because of a changed address of which no notice was
given, shall be deemed receipt of the notice sent. Any party hereto may change the address for receiving notices hereunder by notice sent in accordance with the terms of this Section 13. Notice may be given by counsel on behalf of either
party. 
 14. SUCCESSORS AND ASSIGNS; ASSIGNMENT. 

All terms of this Agreement shall be binding upon, and shall inure to the benefit of and be enforceable by the parties hereto and their
respective legal successors and assigns. This Agreement may not be assigned by Buyer without the written consent of Seller. Notwithstanding the foregoing, Buyer shall have the right to assign this Agreement to an affiliate or designee of Buyer. 

15. GOVERNING LAW; CONSENT TO JURISDICTION. 

This Agreement is intended to be performed in the State of Georgia and shall be governed and construed in all respects in accordance with the
laws of, applicable to, the State of Georgia, except to the extent superseded by or inconsistent with U.S. Bankruptcy law applicable to the Seller’s Chapter 11 Cases In the event of any dispute arising out of or under this Agreement, including
the Exhibits annexed hereto, each party shall irrevocably submit to (a) the exclusive jurisdiction of the Bankruptcy Court, and (b) the appropriate court of the State of Georgia, if and only if, following commencement of litigation, it is
determined by the Bankruptcy Court that it cannot exercise jurisdiction. 

  
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 16. CAPTIONS. 

The captions of this Agreement are inserted for convenience or reference only and not to define, describe or limit the scope or the intent of
this Agreement or any term hereof. 
 17. CHANGES AND MODIFICATIONS; CHANGES AND INCORPORATIONS OF PRIOR AGREEMENTS. 

This Agreement may not be orally changed, modified or terminated; it supersedes any and all prior understandings and/or letter agreements;
other matters of similar nature shall be deemed to be of no force or effect in the interpretation of this Agreement, it being intended that this Agreement represents the entire understanding of the parties. No waiver of any provision hereof shall be
valid unless in writing and signed by a party against whom it is to be enforced. This Agreement may not be amended except by written instrument executed by Buyer and Seller or by the terms of the Sale Order. 

18. WAIVER. 
 No failure of either party
to exercise any power given hereunder to insist upon strict compliance with any obligations specified herein, and no custom or practice at variance with the terms hereof, shall constitute a waiver of any party’s right to demand strict
compliance with the terms hereof; provided, however, that any party may, at its sole option, waive any requirement, covenant or condition herein established for the benefit of such party without affecting any of the other provisions of this
Agreement. 
 19. FURTHER ASSURANCES. 

Seller and Buyer each agree to execute and deliver to the other such further documents and instruments as may be reasonable and necessary in
furtherance of, and to effectuate the intent of, the parties as expressed by the terms and conditions hereof. 
 20. ATTORNEYS’ FEES. 

If either party commences an action against the other to enforce any of the terms hereof, or because of the breach by either party of any of
the covenants, terms or conditions hereof, each party shall bear its own attorneys’ fees, costs, and expenses. 
 21. CONDITION OF PROPERTY.

 (a) Buyer agrees to accept the transfer and conveyance of the Property by Seller without any warranty or representation, except as
otherwise set forth in this Agreement and in the Deed, concerning the quantity, quality, or condition or the Property or Seller’s interest therein, the availability of water, water pressure, sewer, sewer capacity, rock, poor soils, endangered
species, specimen trees, utilities or necessary governmental authorizations, or any other matter not expressed in this contract for sale. Buyer is accepting the Property “AS IS” with all faults, except as otherwise set forth in this
Agreement. Seller will not make any investigation 

  
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 of the condition of the Property. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES GIVEN TO BUYER IN CONNECTION
WITH THE SALE OF THE SUBJECT PROPERTY, EXCEPT AS OTHERWISE SET FORTH IN THIS AGREEMENT AND IN THE DEED. SELLER DOES HEREBY DISCLAIM ANY AND ALL WARRANTIES OF MERCHANTABILITY AND FITNESS THAT MAY BE DUE FROM SELLER TO BUYER. BUYER HEREBY FOREVER
DISCHARGES, DEFENDS, ACQUITS, RELEASES, WAIVES AND HOLDS SELLER HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, CAUSES OF ACTION OR LIABILITIES RELATING TO THE PROPERTY WHATSOEVER, EXCEPT AS OTHERWISE SET FORTH IN THIS AGREEMENT. 

(b) The provisions of this Section 21 shall survive Closing. 

22. EMINENT DOMAIN. 
 If, after the
Effective Date and prior to Closing, Seller receives notice of the commencement or threatened commencement of eminent domain or other like proceedings against the Property or any portion thereof, Seller shall promptly give written notice thereof to
Buyer. In the event of any eminent domain or other like proceedings, Buyer shall close the transaction contemplated hereby in accordance with its terms but subject to such proceedings, in which event the Purchase Price shall not be reduced but
Seller shall assign to Buyer Seller’s rights in any condemnation award or proceeds attributable to the Property. 
 23. TIME OF ESSENCE. 

TIME IS OF THE ESSENCE IN THIS AGREEMENT. 
 24.
SURVIVAL. 
 Except as otherwise provided herein, the terms and provisions of this Agreement shall not survive Closing or termination
of this Agreement. 
 25. CONSTRUCTION. 

Each party hereto acknowledges that all parties hereto participated in the drafting of this agreement and consulted with its own legal counsel
in connection therewith. Accordingly, this Agreement shall not be construed more strictly against any one party. 
 26. ACCEPTANCE. 

The offer by the first party to execute this Agreement to sell or buy the Property shall terminate unless this Agreement is accepted and
executed by the other party within five (5) business days after the offer is made. Notwithstanding the preceding, all of the Seller’s obligations shall be conditioned by the Bankruptcy Requirements. 

  
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 27. EXHIBITS. 

The Exhibits referred to herein and attached to this Agreement are incorporated herein by full reference. 

28. COUNTERPART EXECUTION. 
 This
Agreement may be executed in separate counterparts, and copies delivered electronically, by PDF or facsimile shall be deemed originals. It shall be fully executed when each party whose signature is required has signed and delivered to the other at
least one counterpart even though no one counterpart contains the signatures of all the parties. Once Buyer and Seller have each signed at least one counterpart of this Agreement, this Agreement shall constitute a valid and binding agreement between
Buyer and Seller even though this Agreement has not yet been signed by Escrow Agent. 
 29. SEVERABILITY. 

The invalidity or unenforceability of a particular provision of this Agreement shall not affect the other provisions hereof, and this
Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted. 
 30. BUSINESS DAY CONVENTION. 

Should any time period provided in this Agreement expire on a Saturday, Sunday or legal holiday, such time period shall automatically be
extended to the next date that is not a Saturday, Sunday or legal holiday. 
 31. ESCROW AGENT. The Deposit and any other money deposited in escrow
hereunder (collectively, the “Escrowed Funds”) shall be held by Escrow Agent in escrow upon the following terms and conditions: 

(a) It is agreed that the duties of Escrow Agent are purely ministerial in nature, and that Escrow Agent shall incur no liability whatever
except for willful misconduct or gross negligence so long as Escrow Agent has acted in good faith. Seller and Buyer release Escrow Agent from any act done or omitted to be done by Escrow Agent in good faith in the performance of Escrow Agent’s
duties hereunder. 
 (b) Escrow Agent shall be under no responsibility in respect to any of the monies deposited with it other than
faithfully to follow the instructions herein contained. Escrow Agent may consult with counsel and shall be fully protected in any actions taken in good faith, in accordance with the advice of counsel. Escrow Agent shall not be required to defend any
legal proceedings which may be instituted regarding this escrow or any escrow instructions unless requested to do so by Seller and Buyer and indemnified to the satisfaction of Escrow Agent against the cost and expense of such defense. Escrow Agent
shall not be required to institute legal proceedings of any kind. Escrow Agent shall have no responsibility for the genuineness or validity of any document or other item deposited with Escrow Agent, and shall be fully protected

  
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in acting in accordance with any written instructions given to Escrow Agent hereunder and believed by Escrow Agent to have been signed by the proper parties. 

(c) Escrow Agent assumes no liability under this Agreement except that of a stakeholder. If there is any dispute as to whether Escrow Agent is
obligated to deliver the escrow monies, or as to whom that sum is to be delivered, Escrow Agent shall not be obligated to make any delivery of the sum, but in such event may hold the sum until: (i) receipt by Escrow Agent of any authorization
in writing signed by all the persons having an interest in such dispute, directing the disposition of the sum, or in the absence of such authorization until the determination of the rights of the parties in an appropriate proceeding or (ii) the
Escrow Agent receives a certified copy of a final non-appealable judgment of a court of competent jurisdiction directing the release and delivery of the escrow monies in which event the Escrow Agent shall then
release and deliver the escrow monies in accordance with said direction. Upon making delivery of the moneys in the manner provided for in this Agreement, Escrow Agent shall have no further liability in its capacity as Escrow Agent in this matter.

 (d) Escrow Agent has executed this Agreement to confirm that Escrow Agent is holding (drafts are subject to collection) and will hold the
Escrowed Funds in escrow pursuant to the provisions of this Agreement. All interest earned on the Escrowed Funds shall be for the benefit of Buyer unless and until such interest is delivered to Seller in accordance with the terms of this Agreement.
Buyer and Seller agree to execute such documents as Escrow Agent may reasonably request in connection with Escrow Agent acting in such capacity and holding and investing the Deposit. 

32. CONFIDENTIALITY. 
 Seller may publicly file a copy of
this Agreement with the Bankruptcy Court, provide a copy of this Agreement to other parties in interest in the Chapter 11 Cases, and may publicly announce its terms. Any press releases, public statements or other public disclosures by Seller or
Buyer of this transaction or the terms of this transaction shall be subject to the prior written consent of the other party and such party’s approval of the content thereof, which provision, with respect to the terms of this transaction (except
as reflected in public records) shall survive Closing. 
 33. REPRESENTATIONS 

A. Seller’s Representations and Warranties; Qualifications and Limitations. Subject to the qualifications and limitations set
forth at the end of this Section, Seller represents and warrants to Buyer that as of the date of this Agreement (unless otherwise stated below) and as of the Closing Date: 

(i) Subject to the applicable provisions of the Bankruptcy Code, Seller is a duly formed and validly existing corporation
organized under the laws of Delaware and is in good standing. 
 (ii) Subject to the applicable provisions of the Bankruptcy
Code and any other conditions of the Bankruptcy Requirements, Seller has the full legal right, power and 

  
 -12- 

PSA (Dublin, Georgia) 

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 
authority to execute and deliver this Agreement and all documents now or hereafter to be executed by it pursuant hereto, to consummate the transaction contemplated in this Agreement, and to
perform its obligations under this Agreement and such documents. The person signing this Agreement on behalf of Seller is authorized to do so. 

(iii) The Property is and shall be vacant and free and clear of all leases, tenants, and occupants at the Closing. 

(iv) All equipment located on the Property as of October 26, 2019 shall remain on the Property as of Closing. 

Said warranties and representations shall survive Closing for three (3) months. 

B. Buyer’s Representations and Warranties. Buyer represents and warrants to Seller that as of the date of this Agreement: 

(i) Buyer is a duly formed and validly existing corporation organized under the laws of Florida and is in good standing. 

(ii) Buyer has the full legal right, power and authority to execute and deliver this Agreement and all documents now or
hereafter to be executed by Buyer pursuant to this Agreement (collectively, the “Buyer’s Documents”), to consummate the transaction contemplated hereby, and to perform its obligations hereunder and under Buyer’s Documents.

 (iii) Neither the entering into of this Agreement nor the consummation of this sale will constitute a violation or breach
by Buyer of any contract or other instrument to which it is a party, or to which it is subject, or by which any of its assets or properties may be affected, or a violation or breach of any judgment, order, writ, injunction or decree issued against
or imposed upon Buyer, or to Buyer’s knowledge, will result in a violation of any applicable law, order, rule or regulation of any governmental authority. 

(iv) Buyer is entering into this Agreement in “good faith” within the meaning of section 363(m) of the Bankruptcy
Code, without collusion, at arm’s length, and is not an Insider as that term is defined in section 101 of the Bankruptcy Code. 

(v) Buyer has transferred the Deposit into the Buyer’s outside counsel’s interest on lawyer account. 

34. EXCHANGE. Each party shall cooperate with the other and shall execute any and all documents necessary to allow such party (or its affiliates) to
effectuate the conveyance of the Property as an exchange under Section 1031 of the Internal Revenue Code; provided, however, that at no time shall the cooperating party be required to take title to real estate other than the Property or incur
any obligations other than those set forth elsewhere in this Agreement. The exchanging party shall pay all reasonable costs which may be incurred by the cooperating party in connection with such tax free exchange, and the exchanging party shall
indemnify the 

  
 -13- 

PSA (Dublin, Georgia) 

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 
cooperating party and hold it harmless from any loss, cost, damage, expense or liability incurred in connection therewith. 

35. BANKRUPTCY APPROVAL. The parties acknowledge and agree that this Agreement is subject to the Bankruptcy Requirements and entry of a Sale Order.

 36. STALKING HORSE BID CONTINGENCY. 

(a) Auction. In accordance with the Bidding Procedures Order, Seller may sell the Property (a) at an auction (the
“Auction”) as more specifically set forth in the Bidding Procedures Order and (b) pursuant to and in accordance with a Sale Order. 

(b) Other Bids. Buyer acknowledges that, pursuant to the Bidding Procedures Order, Seller will solicit bids from one or more other
prospective purchasers for the sale of some or all of the Property in accordance with the procedures set forth in the Bidding Procedures Order. The winning bidder at the Auction will be the successful bidder (“Successful Bidder”). The
winning bidder shall be selected in the exercise of the Seller’s business judgment. 
 (c) Bid Process. If Buyer is the
Successful Bidder at the Auction and the Bankruptcy Court approves the sale contemplated by this Agreement, the parties shall close in accordance with the terms of this Agreement and the Sale Order. If Buyer is the Successful Bidder at the Auction
but the Bankruptcy Court does not approve the sale contemplated by this Agreement through no fault of Buyer, Seller shall have the right to terminate this Agreement, in which event the Deposit shall be returned to Buyer, and this Agreement shall
terminate, and the parties shall have no further obligations hereunder, except as to matters which expressly survive as set forth in this Agreement. If Buyer is not the Successful Bidder at the Auction, Seller may determine that the Buyer is the
next highest or otherwise best bid, as determined in Seller’s sole discretion (“Back-Up Bidder”). In the event the Successful Bidder fails to close on the sale of the Property within the time
parameters approved by the Bankruptcy Court (unless extended by agreement of the Seller in its sole discretion to the extent it is permitted to grant any such extension), Seller shall retain the Successful Bidder’s deposit and Seller will be
released from its obligation to sell the Property to the Successful Bidder, and the Seller may then sell the Property to the Back-Up Bidder approved by the Bankruptcy Court at the hearing respecting the Sale
Order. In such instance the Back-Up Bidder shall in accordance with its last bid at Auction, pay as the purchase price for the Property, the amount of the Back-Up Bid,
(receiving credit for its deposit), and all closing costs payable by the purchaser, upon the close of escrow for the sale. 

  
 -14- 

PSA (Dublin, Georgia) 

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 IN WITNESS WHEREOF, the duly authorized representatives of the parties have set their hands
and seals hereto as of the day and year indicted next to their signatures. 
  

			
	BUYER:
	
	PERRY ELLIS INTERNATIONAL, INC
		
	By:	 	/s/ Jorge Narino
	Name:	 	Jorge Narino
	Title:	 	CFO
	
	Date: October 28, 2019

 [SIGNATURES CONTINUED ON NEXT PAGE] 

  
 -15- 

PSA (Dublin, Georgia) 

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 [SIGNATURES CONTINUED FROM PREVIOUS PAGE] 

 

			
	SELLER:
	
	FRED’S, INC.

 
			
		
	By:	 	/s/ Joe Anto
	Name	 	Joe Anto
	Title:	 	Ceo
		
	Date:	 	11/1/2019

 [SIGNATURES CONTINUED ON NEXT PAGE] 

  
 -16- 

PSA (Dublin, Georgia) 

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 [SIGNATURES CONTINUED FROM PREVIOUS PAGE] 

Escrow Agent hereby agrees to comply with Sections 2 and 31 of this Agreement. 

 

			
	ESCROW AGENT:
	
	FIRST AMERICAN TITLE INSURANCE COMPANY

 
			
		
	By:	 	 

 
			
	Name:	 	 

 
			
	Title:	 	 

 
			
		
	Date:	 	 

  
 -17- 

PSA (Dublin, Georgia) 

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 DISCUSSION DRAFT 

Exhibit “A” 

Tax Parcel Number of the Property 

101B 032 C 

  
 PSA (Dublin, Georgia) 

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 DISCUSSION DRAFT 

Exhibit “B” 

Wiring Instructions 
 (to be
provided by Escrow Agent) 

  
 PSA (Dublin, Georgia) 

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 DISCUSSION DRAFT 

Exhibit “C” 

Form of Special Warranty Deed 
 After
Recording Return to: 
 LIMITED WARRANTY DEED 

THIS INDENTURE, made as of the _____ day of __________, 2019, is by FRED’S INC. _______________________________
(“Grantee”). 
 WITNESSETH, Grantor for and in consideration of the sum of TEN DOLLARS ($10.00) AND OTHER GOOD AND VALUABLE
CONSIDERATION, cash in hand paid, the receipt of which is hereby acknowledged, has bargained, sold and does by these presents bargain, sell, remise, release, and forever quitclaim to Grantee all the right, title, interest, claim or demand which
Grantor has or may have had in and to all that tract of land, if any, described on Exhibit A attached hereto and made a part hereof. 

Together with all the rights, members and appurtenances to the said described premises in anywise appertaining or belonging. 

TO HAVE AND TO HOLD the said described premises unto Grantee, so that neither Grantor nor any other person or persons claiming under Grantor
shall at any time, claim or demand any right, title or interest to the aforesaid described premises or its appurtenances. 
 This Deed and the warranty of
title contained herein are made expressly subject to the items set forth on Exhibit B attached hereto and made a part hereof. 
 Grantor will warrant
and forever defend the right and title to the Property unto Grantee against the lawful claims of all persons claiming by, through, or under Grantor. 

(The words “Grantor” and “Grantee” include all genders, plural and singular, and their respective heirs, successors and
assigns where the context permits.) 
 PSA (City, State) 

4833-1860-0358.1 

  

5197957-2 

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 IN WITNESS WHEREOF, Grantor has signed and sealed this Deed as of the day and year above
written. 
  

					
	 FRED’S INC.,
 a Delaware
corporation
	 	
			
	By:	 	 	 	(Seal)
	Name:	 	 	 	
	Title:	 	 	 	

 [NOTE – APPROPRIATE FORM OF AUTHENTICATION 

AND NOTARY ACKNOWLEDGEMENT TO BE INSERTED, 

TOGETHER WITH ANY STATE PRESCRIBED REVISIONS] 

PSA (City, State) 
 4833-1860-0358.1 

5197957-2 

  

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 Exhibit A to Exhibit “C” 

Legal Description 
 PSA (City, State) 

4833-1860-0358.1 

5197957-2 

  

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 DISCUSSION DRAFT 

Exhibit B to Exhibit “C” 

Permitted Exceptions 
  

	1.	 All taxes and assessments for the year 2020 and subsequent years, not yet due and payable.

  

	2.	 All easements, restrictions, reservations, encumbrances and other matters appearing of record.

  

	3.	 Zoning and building laws and other ordinances affecting the Property. 

 

	4.	 All matters that would be disclosed by an accurate survey and inspection of the Property.

  

	5.	 Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to
ores, metals, coal, lignite, oil, gas, uranium, limestone, clay, rock, sand, and gravel located in, on, or under the Property or produced from the Property, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation,
or otherwise, and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights in (a) or (b) appear in the public records. 

 

	6.	 [Insert additional exceptions from Schedule B, Part II of the Title Commitment] 

PSA (City, State) 
 4833-1860-0358.1 

5197957-2 

  

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 DISCUSSION DRAFT 

Exhibit “D” 

Form of Seller’s Affidavit 

SELLER’S AFFIDAVIT 
 Personally
appeared before me the undersigned deponent, __________________________, who, first being duly sworn, deposes and says on oath that he/she is the _________________________ of FRED’S INC., a Delaware corporation (the
“Grantor”), and in such capacity is authorized to make this affidavit, and does further depose and say under oath, to the best of his/her knowledge and belief but without independent investigation, the following: 

THAT, subject to the Permitted Title Exceptions set forth on Exhibit “B” attached hereto, no liens, encumbrances, covenants or restrictions
affecting that certain tract or parcel of land described on Exhibit “A” attached hereto and any improvements thereon (the “Property”) have been created by acts of the Grantor during any time that the Grantor has
held fee simple title to the Property; and 
 THAT, any improvements or repairs made on the Property at the behest of the Grantor during the ninety-five
(95) days immediately preceding this date have been fully paid for or will be paid for when due, and there are no outstanding bills incurred for labor or materials used in making improvements or repairs on the Property which were suffered or
incurred by the Grantor, or for services of architects, engineers, or registered surveyors incurred by the Grantor in connection therewith; and 
 THAT,
apart from brokers (if any) engaged by the Grantor for the sale of the Property, the fees or commissions of which brokers will be paid concurrently with the consummation of the transaction for which this Affidavit is given, no brokers have been
engaged by the Grantor with regard to the sale of the Property; and 
 THAT, the deponent makes this affidavit for the purpose of inducing its purchaser to
purchase the Property and to induce a title insurance company to issue its policy or policies of title insurance with respect to the Property. 
 PSA (City,
State) 
 4833-1860-0358.1 
 4832-9869-0984.2 

5197957-2 

  

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

			
	Sworn to and subscribed	  	
	before me this               day of	  	                                      
               (Seal)
	_________________, 20__.	  	_____________________, not individually
		  	but solely as the
                                     of
	_______________________	  	 Fred’s, Inc.

	 Notary Public
	  	
		
	 (NOTARY SEAL)
	  	
		
	 My Commission Expires:
	  	
	_______________________	  	

 PSA (City, State) 

4833-1860-0358.1 

5197957-2 

  

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 Exhibit “A” to Exhibit “D” 

Legal Description of the Property 
 PSA (City,
State) 
 4833-1860-0358.1 

5197957-2 

  
  

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 Exhibit “B” to Exhibit “D” 

(Permitted Title Exceptions) 
  

	1.	 All taxes and assessments for the year 2020 and subsequent years, not yet due and payable.

  

	2.	 All easements, restrictions, reservations, encumbrances and other matters appearing of record.

  

	3.	 Zoning and building laws and other ordinances affecting the Property. 

 

	4.	 All matters that would be disclosed by an accurate survey and inspection of the Property.

  

	5.	 Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to
ores, metals, coal, lignite, oil, gas, uranium, limestone, clay, rock, sand, and gravel located in, on, or under the Property or produced from the Property, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation,
or otherwise, and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights in (a) or (b) appear in the public records. 

 

	6.	 [Insert additional exceptions from Schedule B, Part II of the Title Commitment] 

PSA (City, State) 
 4833-1860-0358.1 

5197957-2 

  
  

 DocuSign Envelope ID: 488E3366-4F8B-480D-AC37-056D2486A759 

 

 PSA (City, State) 

4833-1860-0358.1 

5197957-2Exhibit

Exhibit  10.24
EXECUTION VERSION

*Certain identified information has been excluded from this exhibit because it is
both (i) not material and (ii) would be competitively harmful if publicly disclosed.
The redacted confidential portions of the exhibit are marked by [***].

PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”), dated November 4, 2019 (the “Effective Date”), is entered into by and between SFR MT LLC, a Delaware limited liability company (the “Seller”), and CONREX ML PORTFOLIO 2019-01 OPERATING COMPANY, LLC, a Delaware limited liability company (the “Purchaser”). 
Whereas, (i) Conrex Property Management, LLC, a Delaware limited liability company (the “Property Manager”), is the current property manager for the Property (as defined herein) on behalf of Seller and has received property management fees in exchange for such services pursuant to a property management and services agreement (the “Existing PMA”), and (ii) an affiliate of Property Manager is the owner of an indirect interest in Purchaser and, therefore in consideration for such property management fees, its ownership interest in Purchaser and other good and other good and valuable consideration, Property Manager desires to join in this Agreement for purposes of giving certain representations and warranties set forth herein and providing credit support in connection therewith;
In consideration of the agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Seller and the Purchaser agree as follows:  
1.SALE OF PROPERTY
A.    Purchase and Sale.  Subject to the terms and provisions of this Agreement, the Seller agrees to sell to the Purchaser and the Purchaser agrees to purchase from the Seller, all of its right, title and interest in the real property (including land and all buildings, structures and improvements thereon, the “Real Property”), consisting of one thousand two hundred thirty (1,230) single family residential properties commonly known by the addresses set forth on Exhibit A attached hereto and incorporated herein, together with:
(i)    any personal property owned by the Seller and presently located on the Property (collectively, the “Personal Property”); 
(ii)    all of the interest of the Seller in any leases, subleases, rental agreements or other agreements (written or verbal, now or hereafter in effect) that grant a possessory interest in or that otherwise grant rights with regard to use of all or any portion of the Property (together with any renewals and amendments thereof, each a “Lease” and collectively, the “Leases”; the Leases together with the Real Property and Personal Property, the “Property”); and

Page 1

(iii)    all books, records, data, rental history, property and tenant files, rent rolls and repair and maintenance records associated with the Property in the possession of the Seller or the applicable Property Manager (the “Intangible Property”).
All of the dwelling units collectively are referred to as “Units”; an individual dwelling unit is referred to as a “Unit”; and more than one dwelling unit are referred to as the “Units”.
2.PURCHASE PRICE
A.    Purchase Price.  The Seller and the Purchaser hereby acknowledge and agree that the purchase price of the Property shall be One Hundred Thirty-Six Million, Eight Hundred Thousand and No/100 Dollars ($136,800,000.00) (the “Purchase Price”).  The Purchase Price shall be allocated to each individual Unit (any such allocated amount being the related “Allocated Purchase Price”) as set forth on Exhibit A.
B.    Payment of Purchase Price.    The Purchase Price shall be payable at Closing (as defined below).  On or prior to the Closing Date (as defined below), the Purchaser shall deposit in escrow with Chicago Title Insurance Company (“Escrow Agent”) in immediately available funds (the “Cash Due at Closing”) the amount of the Purchase Price subject to any credits, reductions, prorations or other adjustments for which this Agreement provides, including pursuant to Sections 2(C), 6(B), 6(C), 6(D), 6(E) and 10(A) of this Agreement.
C.    Currently Listed Properties.  Set forth on Schedule 2(C) are certain Units that the Seller has listed for sale as of the Effective Date (any such Unit, a “Currently Listed Property”), which Currently Listed Properties the Purchaser acknowledges may be sold by the Seller any time prior to the date which is two (2) Business Days prior to the Closing (the “Listing Cutoff Date”) or for which a contract of sale may be entered into prior to the Listing Cutoff Date.  If any Currently Listed Property is sold by the Seller prior to the Listing Cutoff Date, or a contract for the sale thereof is entered into by the Seller prior to the Listing Cutoff Date, then such Currently Listed Property shall not be sold pursuant to this Agreement, such Currently Listed Property shall be removed from the Property, the proceeds thereof shall be retained by the Seller and the Purchase Price shall be reduced by the Allocated Purchase Price for such Currently Listed Property. From and after the Effective Date, the Seller agrees not to list for sale any Unit which is not a Currently Listed Property as of the Effective Date, and in the event Closing occurs Seller shall (or shall cause Property Manager to) unlist any Currently Listed Property that is sold pursuant to this Agreement.
3.PROPERTY CONDITION
A.    Delivery of Property Information.  
(i)    On or prior to Effective Date, and to the extent in the actual possession or control of Seller or Property Manager, the Seller shall make available to the Purchaser and the Purchaser’s Agents (as defined herein), through the Property Manager, copies of the following items relating to the Property (collectively, the “Property Information”):

Page 2

(a)    Leases for the Units which, as of the Effective Date, are leased;
(b)    A rent roll showing the current tenants occupying the Units under Leases, each lease end date, current rent, security deposits, and the options relating to such lease (the “Rent Roll”); 
(c)    All other documents reasonably requested by the Seller;
(d)    The repair, maintenance and capital expenditure records for each Unit; and
(e)    HOA documents necessary for the Purchaser to review rental related restrictions for each Unit.
The Purchaser acknowledges and agrees that, except as expressly set forth in this Agreement, neither the Seller nor the Property Manager makes any representation or warranty, express or implied, as to the accuracy or completeness of the Property Information or the Data Tape (as defined in Section 5(A)(xii)), including, but not limited to, any financial information and/or projections contained therein.  Except as expressly set forth in this Agreement, each of the Seller and the Property Manager hereby expressly disclaims any and all liability for representations or warranties, express or implied, regarding the Property Information and the Data Tape, and the Purchaser acknowledges and agrees that neither the Seller nor the Property Manager shall have any liability to the Purchaser resulting from the Purchaser's use of or reliance upon the Property Information or the Data Tape.
B.    Inspection of the Property.  Beginning on September 26, 2019 and ending at 6:00 pm Eastern time on November 4, 2019 (the “Due Diligence Period”), the Purchaser and the Purchaser’s affiliates, engineers, employees, officers, directors, agents, representatives and attorneys (the “Purchaser’s Agents”) shall have the right (subject to the Inspection Cap (as defined herein)) to undertake a due diligence review of 100% of the Property.  During the Due Diligence Period, with prior written notice (which may be accomplished by electronic mail) of no less than two (2) days to the Seller and the Property Manager, and at reasonable times, the Purchaser shall also have the right to conduct inspections of the Property, including, without limitation, physical examinations, structural tests, due diligence investigations, and feasibility studies (collectively, the “Inspections”).  The Seller shall instruct the Property Manager to give the Purchaser and the Purchaser’s Agents reasonable access to relevant personnel during regular business hours and with reasonable prior written notice and shall provide access to all reports, books, records, contracts, data, documentation and any other information related to the Property in the Seller’s or Property Manager’s possession or control.  The Seller shall instruct the Property Manager to provide interior access (on a one time basis) to the Purchaser and the Purchaser’s Agents for each of the unoccupied Units and up to ten percent (10%) of the occupied Units (the “Inspection Cap”).  The Seller and the Purchaser shall confer promptly after the Effective Date to identify the Units for which the Seller will attempt to provide access.  All Inspections shall be conducted in compliance with the terms hereof and subject to the rights of all tenants in possession.  The Purchaser agrees that it shall not enter any homes currently leased to a tenant without providing a representative of the Property Manager a reasonable opportunity to be present, and only upon advance notice to the respective tenant(s), as required under the terms of the applicable Lease.  Notwithstanding the foregoing, the Seller reserves the right to have a representative of the Seller accompany the Purchaser or its 

Page 3

contractors, agents, employees and the like, during any Inspection or the conduct of any other physical investigation of the Property.
C.    Due Diligence Period and Right to Terminate.  In the Purchaser’s sole and absolute discretion, for any or no reason, the Purchaser may elect to terminate this Agreement by sending the Seller written notice thereof in accordance with Section 10(C) hereof prior to the expiration of the Due Diligence Period.  If the Purchaser so terminates this Agreement, neither party shall have any further rights or obligations hereunder except for those which are expressly stated to survive the termination of this Agreement.  The Purchaser may agree to purchase all of the Properties (subject to the terms of Section 2(C) hereof) or agree to proceed to Closing prior to the end of the Due Diligence Period by providing written notice to the Seller at any time during the Due Diligence Period.  If the Purchaser does not terminate this Agreement on or before the expiration of the Due Diligence Period, the parties shall, subject to the terms and conditions set forth in this Agreement, proceed to Closing and the Purchaser shall have no further right to terminate this Agreement pursuant to this Section 3(C).
4.TITLE REVIEW
A.    Title Commitment.  The Purchaser shall use commercially reasonable efforts to obtain a current standard form commitment for title insurance for each Unit (one or more of which title commitments may contain multiple Units thereunder) no later than the expiration of the Due Diligence Period, issued by or on behalf of Escrow Agent, OS National, LLC or another national underwriter reasonably satisfactory to the Purchaser (“Title Company”; each such commitment, a “Commitment” and collectively, the “Commitments”) describing such Units, listing the Purchaser as the proposed insured, showing the Purchase Price allocated to the applicable Units as the policy amount and including legible copies of all recorded documents evidencing title exceptions, and Seller shall reasonably cooperate with Purchaser’s efforts.  The Commitments shall be subject only to those title exceptions permitted by this Agreement or as may be approved or deemed approved by the Purchaser during the Due Diligence Period.  The cost of the title examination fees and municipal lien search fees, and the cost of the Purchaser’s owner’s title policy (the “Purchaser’s Title Policy”) shall be allocated in the manner described in Section 6.
B.    Review of Title.  If any exceptions appear in a Commitment that are unacceptable to the Purchaser, the Purchaser shall notify the Seller in writing of such objections (the “Purchaser’s Title Objections”) on or before November 4, 2019 (the “Title Objection Deadline”).  The Seller shall have no obligation to cure any of Purchaser’s Title Objections, to bring any action or proceeding, or otherwise to incur any expense whatsoever to eliminate, cure, or modify any of Purchaser’s Title Objections, except for Monetary Liens (as hereinafter defined), which liens Seller shall cause to be released at or prior to Closing and which may be satisfied from the proceeds of the sale contemplated by this Agreement.  Within three (3) days after the Seller’s receipt of Purchaser’s Title Objections, the Seller shall deliver written notice to the Purchaser advising the Purchaser whether the Seller intends to cure any of Purchaser’s Title Objections (the “Response Notice”).  If Seller elects to cure any of Purchaser’s Title Objections, Seller shall use commercially reasonable efforts to cure or remove the same prior to Closing (provided that if Seller fails to cure or remove the same prior to Closing, then such Purchaser’s Title Objection shall not be a Permitted Exception).  The Seller’s 

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failure to timely deliver the Response Notice to the Purchaser within such three (3) day period shall be deemed to constitute an election by the Seller not to cure any of Purchaser’s Title Objections.  If the Seller elects (or is deemed to have elected) not to cure any of Purchaser’s Title Objections with respect to a specific Unit or Units, then the Purchaser may elect by written notice received by Seller on or before the expiration of the Due Diligence Period to (i) terminate this Agreement, or (ii) waive Purchaser’s Title Objections, consummate the transaction contemplated herein, and accept such title as the Seller has elected to deliver without any reduction in Purchase Price, in which case the parties shall, subject to the terms and conditions set forth in this Agreement, proceed to Closing and the Purchaser shall have no further right to terminate this Agreement pursuant to this Section 4(B).  The failure of the Purchaser to timely send notice to the Seller of the Purchaser’s election in the preceding sentence shall be deemed to mean that the Purchaser has elected to terminate this Agreement pursuant to clause (i) of the preceding sentence.  In the event of a termination of this Agreement as described in this Section 4(B), neither party shall have any further rights or obligations hereunder except for those which are expressly stated to survive the termination of this Agreement.  As used herein, “Monetary Liens” shall mean (a) mortgages or deeds of trust encumbering Seller’s interest in the Property or any portion thereof, (b) mechanics’ liens or notices thereof encumbering Seller’s interest in any portion of the Property, (c) liens for delinquent real estate taxes, governmental assessments, or homeowners’ association dues assessed against any portion of the Property owned by Seller, (d) judgment liens that can be removed by the payment of an ascertainable sum of money and that encumber one or more Units, and (e) code enforcement liens and municipal liens.  Monetary Liens shall include, without limitation, those monetary issues set forth in Schedule 4(B) attached hereto.   “Permitted Exceptions” shall refer to all of the following: (a) applicable zoning, building and land use laws, ordinances, rules and regulations provided that the same do not prohibit the use of any Unit as a single family residence, (b) the lien of taxes and assessments not yet due and payable, (c) the rights of the tenants, as tenants only, under the Leases, with no options to purchase or rights of first refusal to purchase, (d) those matters enumerated in “Schedule B-II” of the Title Commitments (other than Monetary Liens and those Purchaser’s Title Objections which Seller has elected in writing to cure or remove as provided in this Section 4(B)).  
C.    Title Insurance Policies.  At Closing, Seller shall convey and transfer to Purchaser insurable title to each Unit.  A condition precedent to Purchaser’s obligation to purchase the Property shall be the irrevocable and unconditional written agreement of the Title Company to record each Deed on the Closing Date and to issue to Purchaser effective as of the date and time the Deed is recorded, an ALTA 2006 Form owner’s title insurance policy with respect to each Unit (each, an “Owner’s Policy”), or equivalent form acceptable to Purchaser, with coverage in the aggregate amount of the Purchase Price and dated as of the date and time the Deed is recorded, indicating title to the Real Property to be vested of record in Purchaser, subject solely to the Permitted Exceptions.  If such condition is not satisfied, Purchaser shall be entitled to terminate this Agreement.  
5.WARRANTIES AND REPRESENTATIONS

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A.    Seller Warranties and Representations.  The Seller represents and warrants to the Purchaser as of the Effective Date and as of the Closing Date with respect to the Seller and the Property that:
(i)    The Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the state of its formation and, to the extent required by applicable law, the states where the Real Property is located, and has full power and authority to enter into and to perform its obligations under this Agreement and under all documents and instruments executed and delivered pursuant to the terms of this Agreement in connection with the Closing, including (without limitation) the documents and instruments required pursuant to the terms of Section 7 (the “Closing Documents”) to be executed by Seller and to consummate the transaction contemplated herein.  The persons executing this Agreement on behalf of the Seller have full power and authority to do so and to perform every act and to execute and deliver every Closing Document necessary or appropriate to consummate the transactions contemplated by this Agreement;
(ii)    All entity action on the part of the Seller and its constituents, which is required for the execution, delivery and performance by the Seller of this Agreement and each of the Closing Documents to be delivered by the Seller at the Closing (including, without limitation, any notice to, filing with, or any authorization, consent, or approval from any governmental instrumentality or other person or entity) has been duly and effectively taken;
(iii)    This Agreement and each of the Closing Documents to be delivered by the Seller at Closing constitute legal, valid and binding obligations of the Seller, enforceable against the Seller in accordance with their respective terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, moratorium, or similar laws affecting the enforcement of creditors’ rights generally, and subject, as to enforceability, to general principles of equity, regardless of whether enforcement is sought in a court of law or equity;
(iv)    Neither the execution of this Agreement nor the performance by the Seller of its obligations under this Agreement will result in any breach or violation of (a) the terms of any law, rule, ordinance, or regulation; or (b) any decree, judgment or order to which the Seller or any constituent member of the Seller is a party now in effect from any court or governmental body.  There are no consents, waivers, authorizations or approvals from any third party necessary to be obtained by the Seller in order to carry out the transactions contemplated by this Agreement.  The execution and delivery of this Agreement and performance by the Seller of its obligations under this Agreement will not conflict with or result in a material breach or default (or constitute an event which, with the giving of notice or the passage of time, or both, would constitute a default) under the Seller’s organizational documents or any indenture, mortgage, lease, agreement, or other instrument to which the Seller 

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is a party or by which the Seller or any of its assets may be bound other than with respect to any outstanding indebtedness to be satisfied at or prior to Closing;
(v)    The Seller is not a “Specially Designated National” or a prohibited person under Executive Order 13224 – Blocking Property and Prohibiting Transactions with Persons who Commit, Threaten to Commit or Support Terrorism, as amended or the regulations issued pursuant thereto (collectively “Executive Order 13224”), and the Seller is not owned by, controlled by, acting for or on behalf of, providing assistance, support, sponsorship or services of any kind to, or otherwise knowingly associated with any of the persons or entities referred to or described in Executive Order 13224, or banned or blocked person, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control;
(vi)    Except as set forth on Schedule 5(A)(vi) hereto, to the Seller’s Knowledge, the Property has not been condemned in whole or in part and Seller has not received any written notice that such proceeding is contemplated; 
(vii)    Seller has instructed the Property Manager to operate the Property in accordance with all applicable laws;
(viii)    Except as set forth on Schedule 5(A)(viii) hereto, to Seller’s Knowledge, there are no actions, suits or proceedings at law or in equity by or before any governmental authority or other entity pending or threatened in writing against or affecting the Property or the Seller, which actions, suits or proceedings would reasonably be expected to have a material adverse effect on such Property; to Seller’s Knowledge, no pending or threatened litigation or proceedings will adversely affect Seller’s ability to consummate the transactions contemplated by this Agreement; to Seller’s Knowledge, the operation of the Property has not been, during Seller’s ownership of the Property, and is not now, the subject of any administrative investigation, action or judicial proceeding in regard to sex, age or racially discriminatory practices initiated by any governmental authority, or any private citizen, and no such investigation, administrative action, or judicial proceeding is now pending, nor is the Property presently operating under any court order or administrative agreement in regard to alleged sex, age or racially discriminatory practices;
(ix)    There are no attachments, executions, assignments for the benefit of creditors, receiverships, conservatorships or voluntary or involuntary proceedings in bankruptcy or pursuant to any other debtor relief laws contemplated or filed by the Seller or pending against the Seller.  The Seller is solvent and has adequate capital for its business and undertakings, including the disposition contemplated by this Agreement;
(x)    The Seller has good and marketable fee simple legal and equitable title to the real property comprising the Property subject to Permitted Exceptions.  

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(xi)    The Seller’s ownership of the Property is free and clear of any liens, mechanic’s liens and mortgages (except to the extent being released or otherwise terminated in connection with Closing) other than Permitted Exceptions.  At or prior to Closing, all taxes, governmental assessments and any other payments (including, but not limited to, sewer, water and utility payments) due and owing for periods prior to Closing in respect of the Property will be paid, or an escrow of funds in an amount sufficient to cover such payments will be established hereunder or will be insured against by the Purchaser’s Title Policy for such individual Property;
(xii)    To the Seller’s Knowledge, all information on the data tape referenced on Exhibit F hereto (the “Data Tape”), is true, complete and accurate in all material respects;
(xiii)    To the Seller’s Knowledge, the Seller has not knowingly withheld any material and adverse information with respect to the Property that is in the actual possession of the Seller and not otherwise available in the Property Manager’s property management system;
(xiv)    Each Unit is a single family residential property and no Unit is a housing cooperative or manufactured housing;
(xv)    Seller is the sole owner of the lessor's interest in all of the Leases; 
(xvi)    Seller has instructed the Property Manager to enter leases for Units in the form attached to the Property Management Agreement;
(xvii)    To Seller’s Knowledge, there are no written or oral agreements affecting the Property or binding on Seller, other than the Property Management Agreement, the Leases, this Agreement, the Permitted Exceptions and vendor agreements for the provision of services to the Properties;
(xviii)    Seller has instructed the Property Manager to execute all leases of Units using the form attached to the Property Management Agreement with only those changes that are required by applicable law and Seller has no Knowledge that the Property Manager has violated that obligation by adding any option to sell any Unit, right of first refusal or right of first opportunity to any lease of any Unit or otherwise agreed to or executed any documents evidencing any such right with respect to any Unit.  Other than with respect to any Leases, Seller has not entered into any agreement or understanding, either written or oral, pursuant to which any person or entity has the right to own, acquire, use or occupy any portion of the Property or any interest therein;
(xix)    Except as set forth in Schedule 5(A)(xix), the Seller has received no written notice from any governmental authority of zoning, building, fire, water, use, health, environmental or other violations of applicable law issued in respect of the Property which, to the Seller’s Knowledge, have not been heretofore corrected;

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(xx)    Seller has no employees; 
(xxi)    Seller is not “an employee benefit plan,” as such term is defined in Section 3(3) of ERISA, which is subject to Title 1 of ERISA. Neither the Property nor any of the other assets of Seller constitute or, to the knowledge of Seller, have ever constituted “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101;
(xxii)    The Property is properly zoned for its present and contemplated use as a single family rental.  All licenses, permits, approvals and consents required in connection with the present and contemplated use and occupancy of the Property have been duly issued by the appropriate governmental authorities or private authorities and are in full force and effect; and
(xxiii)    All utilities required by applicable laws for the operation of the Property are available to the Property necessary for the present and contemplated use of the Property.
B.    Purchaser Warranties and Representations.  The Purchaser represents and warrants to the Seller as of the Effective Date and as of the Closing Date that:
(i)    The Purchaser is a limited liability company in good standing, duly formed and validly existing under the laws of the State of Delaware.  The Purchaser has the authority and power to enter into this Agreement and to consummate the transaction provided for herein.  This Agreement and all other Closing Documents executed and delivered by the Purchaser constitute legal, valid, binding and enforceable obligations of the Purchaser, and there are no claims or defenses, personal or otherwise, or offsets whatsoever to the enforceability or validity of this Agreement.  The person executing this Agreement on behalf of the Purchaser has been duly authorized to do so;
(ii)    All entity action on the part of the Purchaser and its constituents, which is required for the execution, delivery and performance by the Purchaser of this Agreement and each of the Closing Documents to be delivered by the Purchaser at the Closing has been duly and effectively taken;
(iii)    This Agreement and each of the Closing Documents to be delivered by the Purchaser at Closing, constitute legal, valid and binding obligations of the Purchaser, enforceable against the Purchaser in accordance with their respective terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, moratorium, or similar laws affecting the enforcement of creditors’ rights generally, and subject, as to enforceability, to general principles of equity, regardless of whether enforcement is sought in a court of law or equity;
(iv)    Neither the execution of this Agreement nor the performance by the Purchaser of its obligations under this Agreement will result in any breach or violation of (i) 

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the terms of any law, rule, ordinance, or regulation; or (ii) any decree, judgment or order to which the Purchaser or any constituent member of the Purchaser is a party now in effect from any court or governmental body.  There are no consents, waivers, authorizations or approvals from any third party necessary to be obtained by the Purchaser in order to carry out the transactions contemplated by this Agreement.  The execution and delivery of this Agreement and performance by the Purchaser of its obligations under this Agreement will not conflict with or result in a breach or default (or constitute an event which, with the giving of notice or the passage of time, or both, would constitute a default) under the Purchaser’s organizational documents or any indenture, mortgage, lease, agreement, or other instrument to which the Purchaser is a party or by which the Purchaser or any of its assets may be bound; 
(v)    To the knowledge of the Purchaser, there are no actions, suits or proceedings at law or in equity by or before any governmental authority or other entity pending or threatened in writing against or affecting the Purchaser;
(vi)    There are no attachments, executions, assignments for the benefit of creditors, receiverships, conservatorships or voluntary or involuntary proceedings in bankruptcy or pursuant to any other debtor relief laws contemplated or filed by the Purchaser or pending against the Purchaser.  The Purchaser is solvent and has adequate capital for its business and undertakings, including the acquisition contemplated by this Agreement; and
(vii)    The Purchaser is not a “Specially Designated National” or a prohibited person under Executive Order 13224, and the Purchaser is not owned by, controlled by, acting for or on behalf of, providing assistance, support, sponsorship or services of any kind to, or otherwise knowingly associated with any of the persons or entities referred to or described in Executive Order 13224, or banned or blocked person, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control.
C.    Property Manager Warranties and Representations.  The Property Manager represents and warrants to the Purchaser as of the Effective Date and as of the Closing Date with respect to the Property Manager and the Property that:
(i)    A copy of the Rent Roll used by Property Manager to manage the Property is attached as Exhibit I.  The Rent Roll is a true, correct and complete, in all material respects, list of all leases and tenancy agreements affecting the Property and all amendments, extensions and modifications thereto, showing the name of each tenant, the date of each such lease and any amendment thereto, the rent and additional rent and percentage rent due under each such lease, the Security Deposit applicable to such lease, the options relating to such lease, and the other information set forth in the Rent Roll. Except as may be specifically noted to the contrary in the Rent Roll, to the Property Manager’s Knowledge: (i) no tenant is or shall become entitled to any concession, rebate, allowance, or free rent for any period subsequent to the 

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Closing, without the prior written consent of Purchaser except as disclosed on the Data Tape; (ii) the Property Manager has not granted any tenant any purchase option or other interest (other than its leasehold tenancy for a specified term, as stated in the Rent Roll); (iii) all of the services required to be supplied to each tenant pursuant to the Leases are presently being supplied in all material respects; (iv) Property Manager (for itself or on behalf of Seller) has not received any written notice of a failure of Seller or Property Manager to supply any service to any tenant that has not yet been supplied in compliance with the applicable lease, nor has Property Manager received any written notice from any tenant of a material default or alleged material default by Seller or Property Manager (including failure by Seller or Property Manager to complete any material item of work to be completed pursuant to any of the Leases with respect to which the obligations of the Property Manager are delinquent); (v) Property Manager (for itself or on behalf of Seller) has not received any written notice to cancel any of the Leases or any written notice disputing the computation of the rents payable pursuant to any of the Leases; (vi) there are no pending claims asserted by any tenants for offsets against rent or any other monetary claims made against Seller as landlord or Property Manager; and (vii) no tenant has given Property Manager written notice of its intention to vacate a Unit prior to the end of the term of its lease;
(ii)    The Property Manager maintains in its actual possession or control true and complete copies of the Leases (including all extensions, renewals and amendments thereof and thereto).  The Property Manager has not entered into any written or oral agreements affecting the Property or binding on Seller, other than the Leases, and this Agreement;
(iii)    Except as set forth in Schedule 5(A)(xix), to the Property Manager’s Knowledge, there are no pending or threatened requests, applications or proceedings to alter or restrict the zoning or other use restrictions applicable to the Property; the Property Manager (for itself or on behalf of Seller) has received no written notice from any governmental authority of zoning, building, fire, water, use, health, environmental or other violations of applicable law issued in respect of the Property which have not been heretofore corrected; 
(iv)    Except as set forth on Schedule 5(C)(iv), the Property Manager (for itself or on behalf of Seller) has not received any written notice of any unsafe or other condition which presents risk of injury to persons or loss of or damage to property affecting or concerning the Property which have not been heretofore corrected; and
(v)    Except as set forth on Schedule 5(C)(v), to the Property Manager’s Knowledge, there are no unsatisfied requests for material repairs, restorations or improvements requested by the Property Manager that require approval from the Seller and are awaiting approval from the Seller.
D.    Definitions.  As used in this Agreement, the phrases “Known by the Seller”, “Knows”, “the Seller’s Knowledge,” “notice” or words of similar import with respect to Seller, 

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shall mean the present and actual knowledge of Ronald Madden and Glenn Rocca.  As used in this Agreement, the phrases “Known by the Property Manager”, “Knows”, “the Property Manager’s Knowledge,” “notice” or words of similar import with respect to Property Manager, shall mean the present and actual knowledge of Ralph Nacey, Eric Phillipps and Jon Grzyb.
E.    Indemnification Provisions.
(i)    The representations and warranties of the parties hereto contained in this Agreement or any certificate given in connection herewith shall survive the Closing for a period of six (6) months; provided, that any claim made with reasonable specificity by the party seeking to be indemnified within the time periods set forth in this Section 5(E) shall survive until such claim is finally and fully resolved (such period, the “Liability Period”).  Each of the Purchaser and the Seller shall be entitled to bring a claim hereunder in respect of the covenants of the parties hereto contained in this Agreement to be performed in full prior to the Closing at any time until the nine (9) month anniversary of the Closing Date.  
(ii)    During the Liability Period, the Seller shall indemnify and hold harmless the Purchaser and the Purchaser’s Agents, and their respective officers, directors, employees, agents, successors and assigns (each, a “Purchaser Indemnified Party”) for and against all losses, to the extent arising out of or resulting from: (a) any breach of any representation or warranty in this Agreement or certifications given in connection with this Agreement by the Seller, and (b) any breach of any covenant or agreement contained in this Agreement requiring performance by the Seller (any such amount a “Seller Indemnity Payment”).  Notwithstanding anything to the contrary in this Agreement, the Seller shall not be liable to the Purchaser for any losses resulting from or relating to any inaccuracy in or breach of any representation or warranty or any breach of any covenant or pursuant to any indemnity made by the Seller herein or in the documents delivered by the Seller in connection with the Closing in this Agreement if the Purchaser had knowledge of such breach on or prior to the Closing.  In addition, notwithstanding anything to the contrary in this Agreement, (i) the Seller shall have no liability to the Purchaser for any breach of any representation, warranty or covenant or pursuant to any indemnity made by the Seller herein or in the documents delivered by the Seller in connection with the Closing unless and until the valid claims for all such breaches collectively aggregate more than Twenty-Five Thousand and No/100 Dollars ($25,000.00) (the “Seller Tipping Bucket”) and after the Seller Tipping Bucket has been reached, the Purchaser shall be entitled to make a claim with respect to any such breach back to dollar zero; (ii) in no event will the Seller’s aggregate liability to the Purchaser hereunder and under the documents delivered by the Seller in connection with the Closing (including, without limitation, for any breach of representation, warranty or covenant or pursuant to any indemnity made by the Seller) exceed an amount (as applicable, the “Seller Liability Cap”) equal to five percent (5%) of the Purchase Price for any claim or notice of breach made by the Purchaser from the period after the Closing through and including the expiration of the Liability Period; and (iii) any liability 

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of the Seller to the Purchaser hereunder or under the documents delivered by the Seller in connection with the Closing shall be limited in all instances to actual damages and in no event whatsoever shall the Seller be liable to the Purchaser for any special, indirect, incidental, exemplary, consequential or punitive damages.  Notwithstanding the foregoing, the Closing Documents and Seller’s proration obligations under Section 6, obligations under Section 8(C) and Section 10(O),  and indemnification obligations contained in Section 9(B) shall not be subject to the Seller Tipping Bucket or the Seller Liability Cap. The provisions of this Section 5(E)(ii) shall survive the Closing or earlier termination of this Agreement.  
(iii)    During the Liability Period, the Purchaser shall indemnify and hold harmless the Seller and its affiliates, and their respective officers, directors, employees, agents, successors and assigns (each, a “Seller Indemnified Party”) for and against any and all losses, arising out of or resulting from: (a) any breach of any representation or warranty in this Agreement by the Purchaser or any certificate given by the Purchaser in connection with this Agreement, and (b) any breach of any covenant or agreement contained in this Agreement requiring performance by the Purchaser.  Notwithstanding anything to the contrary in this Agreement, any liability of the Purchaser to the Seller hereunder or under the documents delivered by the Purchaser in connection with the Closing shall be limited in all instances to actual damages and in no event whatsoever shall the Purchaser be liable to the Seller for any special, indirect, incidental, exemplary, consequential or punitive damages.  The provisions of this Section 5(E)(iii) shall survive the Closing or earlier termination of this Agreement.
(iv)    During the Liability Period, the Property Manager shall indemnify and hold harmless each Purchaser Indemnified Party for and against all losses, to the extent arising out of or resulting from: (a) any breach of any representation or warranty in this Agreement or certifications given in connection with this Agreement by the Property Manager, and (b) any breach of any covenant or agreement contained in this Agreement requiring performance by the Property Manager (any such amount a “PM Indemnity Payment”).  Notwithstanding anything to the contrary in this Agreement, the Property Manager shall not be liable to the Purchaser for any losses resulting from or relating to any inaccuracy in or breach of any representation or warranty or any breach of any covenant or pursuant to any indemnity made by the Property Manager herein or in the documents delivered by the Property Manager in connection with the Closing in this Agreement if the Purchaser had knowledge of such breach on or prior to the Closing.  In addition, notwithstanding anything to the contrary in this Agreement, (i) the Property Manager shall have no liability to the Purchaser for any breach of any representation, warranty or covenant or pursuant to any indemnity made by the Property Manager herein or in the documents delivered by the Property Manager in connection with the Closing unless and until the valid claims for all such breaches collectively aggregate more than Twenty-Five Thousand and No/100 Dollars ($25,000.00) (the “PM Tipping Bucket”) and after the PM Tipping Bucket has been reached, the Purchaser shall be entitled to make a claim 

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with respect to any such breach back to dollar zero; (ii) in no event will the Property Manager’s aggregate liability to the Purchaser hereunder and under the documents delivered by the Property Manager in connection with the Closing (including, without limitation, for any breach of representation, warranty or covenant or pursuant to any indemnity made by the Property Manager) exceed an amount (as applicable, the “PM Liability Cap”) equal to (y) one percent (1%) of the Purchase Price for any claim or notice of breach made by the Purchaser from the period after the Closing through and including the expiration of the Liability Period; and (iii) any liability of the Property Manager to the Purchaser hereunder or under the documents delivered by the Property Manager in connection with the Closing shall be limited in all instances to actual damages and in no event whatsoever shall the Property Manager be liable to the Purchaser for any special, indirect, incidental, exemplary, consequential or punitive damages.  The provisions of this Section 5(E)(ii) shall survive the Closing or earlier termination of this Agreement.
(v)    Any indemnity payments made by the Seller or the Purchaser pursuant to this Section 5(E) shall be treated as an adjustment to the Purchase Price for federal, state and local income tax purposes, except as otherwise required by applicable law.
(vi)    If a claim may also be covered pursuant to the Owner’s Policy, Purchaser shall diligently pursue such claim and upon receipt of any proceeds from such claim, shall reimburse the Seller or Property Manager, as appropriate, the amount of net proceeds received after deducting the actual out-of-pocket costs of collection, not to exceed the related indemnity payment hereunder.
(vii)    Nothing in this Section 5(E) or in Section 8(A) will limit any remedy any party may have against any Person for fraud committed by such Person.  In the absence of fraud, willful misconduct or, with respect to the third sentence of Section 8(A) only, bad faith of the Seller, the indemnification provisions set forth in this Section 5(E) shall provide the exclusive remedy for breach of any covenant, agreement, representation or warranty set forth in this Agreement or any other agreement ancillary hereto executed pursuant to this Agreement; provided, however, such limitation shall not impair the rights of any of the Parties to seek non-monetary equitable relief, including specific performance or injunctive relief to redress any default or breach of this Agreement.  The provisions of this Section 5(E)(vi) shall survive the Closing or earlier termination of this Agreement.
6.CLOSING

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A.    Time and Place of Closing.  Provided that all of the conditions of this Agreement shall have been satisfied or waived, the closing of the purchase and sale of the Property and the transaction contemplated herein (the “Closing”) shall take place through an escrow with Escrow Agent on or before November 14, 2019 (the “Closing Date”) no later than 1:00 pm eastern time on such date.  The Closing may be held at such other place or such earlier time and date as the Seller and the Purchaser shall mutually approve in writing.
B.    Expenses of the Parties.  Subject to Section 6(C), the Purchaser and the Seller shall each be responsible for their respective costs and expenses (including, but not limited to legal, diligence, accounting and other related expenses) incurred in the structuring and negotiation of this Agreement.
C.    Expenses.  The Purchaser shall pay (i) 50% of the escrow fees charged by Escrow Agent, (ii) the cost of the title examination fees and municipal lien search fees, (iii) the cost of any endorsements, increased coverages or premium for any lender’s title policy as may be desired by the Purchaser or required by the Purchaser, (iv) subject to the immediately following sentence, its own attorney’s fees, and (v) any and all costs incurred in connection with the Purchaser’s Inspections of the Property.  The Seller shall pay (i) 50% of the escrow fees charged by Escrow Agent, (ii) if the Closing occurs, up to $125,000 of the Purchaser’s reasonable and customary legal fees incurred in connection with the negotiation, execution and delivery of this Agreement and the closing of the transactions contemplated hereby and (iii) its own attorney’s fees.
D.    Other Expenses.  The Purchaser’s Title Policy, the recording costs for the Deed, any transfer fees and estoppel fees imposed by any homeowners’ association, transfer taxes, documentary stamps and any other expenses, shall be paid by the Purchaser or the Seller, as applicable, in accordance with the cost allocations set forth on Exhibit G hereto.
E.    Prorations.
(i)    Non-Rent.  Assessments (including homeowners’ association assessments, municipal utility district charges and the like), current taxes and maintenance fees for the month of Closing or other applicable period will be prorated as of the Closing Date.  The Seller shall pay all such expenses attributable to periods prior to the Closing Date (including, without limitation, the HOA Violations, as described in Section 7(C)(iii) below) and the Purchaser shall pay all expenses attributable to all periods from and after the Closing Date.  If ad valorem taxes for the year in which the sale is closed are not available on the Closing Date, proration of taxes will be made on the basis of taxes assessed in the previous year and the parties shall re-prorate within thirty (30) days following receipt of the actual final tax bill.  With respect to special assessments, the Seller shall pay all installments of special assessments due and payable in respect of the applicable Properties for all periods prior to the Closing Date, and the Purchaser shall pay all installments of special assessments in respect of the applicable Properties due and payable on and after the Closing Date; provided, however, that if any such special assessments shall be payable in one installment but relate to improvements which have a useful life for periods of time including the periods of ownership of the Seller and the Purchaser, 

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the parties agree to prorate such special assessments equitably according to the parties’ respective periods of ownership.  If any other charges, expenses, and income are unavailable at the Closing Date, then a readjustment of these items shall be made by the Purchaser and delivered to the Seller (a “Reconciliation Notice”) promptly after such items are determined but in any event within one hundred twenty (120) days of the Closing Date, and, if requested by the applicable the Seller, along with copies of supporting documents, to the extent reasonably available to the Purchaser, including applicable invoices, receipts, and other evidence of such charges.  Within thirty (30) days after the receipt of the Reconciliation Notice, the Seller shall either approve the Reconciliation Notice (and thereafter within thirty (30) days the underpaying party shall pay the overpaying party) or disapprove.  If the Seller disapproves the Reconciliation Notice, the Purchaser and the Seller shall cooperate in good faith to resolve the dispute.  In the event the parties cannot agree, then either party may elect to have the dispute resolved by binding arbitration conducted pursuant to the rules of the American Arbitration Association.  Upon final resolution either by agreement of the parties or by the arbitrator, the underpaying party shall pay the overpaying party within thirty (30) days.
(ii)    Renovation Costs.  The Seller shall be responsible for the payment of any repair or renovation costs the Seller elects to perform on the Property prior to the Closing Date; provided, however, the Seller shall have no obligation to undertake any renovation of the Property prior to Closing.  The Purchaser shall be responsible for the payment of all costs and expenses incurred in connection with the operation and ownership of the Property including, without limitation, any repair or renovation costs performed on the Property on or after the Closing Date.  During the period occurring on and after the Effective Date to the Closing Date, the Seller shall not commence any repair to, or renovation of, any Property with an expected cost in excess of $5,000.00 without the prior written approval of the Purchaser.
(iii)    Leasing Costs.  The Seller shall be solely responsible for the payment of all usual and customary third party finder’s fees, commissions and apartment locater fees with respect to Leases executed after the Effective Date and prior to the Closing.
(iv)    Rent.  The Seller shall be entitled to all of the rents and all other reimbursements, charges and amounts payable to the landlord under the Leases (collectively, “Rents”) applicable to periods prior to and through 11:59 p.m. on the date immediately prior to the Closing Date (the “Proration Date”), and the Purchaser shall be entitled to all Rents applicable to periods thereafter.  Rents prepaid to the Seller, and actually collected by the Seller, for the month in which the Closing Date occurs shall be prorated between the Purchaser and the Seller on the Proration Date on the basis of the number of days in the particular month, and the Purchaser shall receive a credit against the Purchase Price in an amount equal to the Purchaser’s pro rata share thereof.  Any Rents not collected as of the Closing Date shall not be prorated at the time of Closing.  With respect to any delinquent rentals, the Purchaser will use commercially reasonable efforts for a period of ninety (90) days following 

Page 16

the Closing Date to collect the same for the Seller’s benefit after the Closing in the ordinary course of the operation of the Property and such collection, if any, will be applied first toward the rent for the then-current month, then the rent for the month in which the Closing occurs, and any excess monies received shall be applied toward the payment of the most recent rents due under the applicable Lease, with Seller’s share thereof (in any case) being promptly delivered to Seller.  Nothing contained herein shall require the Purchaser to institute any lawsuit or other collection procedure to collect such delinquent rentals or declare a default under any Lease.  If, subsequent to the Closing, any such Rents and other income allocable to the period after the Proration Date are actually received by the Seller following the Closing Date, the Seller shall remit the same (or pro rata share thereof) to the Purchaser within thirty (30) days after receipt (net of reasonable collection costs).  The Seller shall have the right, before the Closing Date, to take such action as it deems appropriate to recover any unpaid Rents for periods prior to the Closing Date; provided, that the Seller shall not be permitted to institute any legal proceedings for the collection of such amounts or any eviction or similar dispossessory remedies after the Closing Date.
(v)    Security Deposits and Other Deposits.  At Closing, the Purchaser shall receive a credit against the Purchase Price in the amount of any security or other refundable deposits actually paid to or received by the Seller under the Leases (and not, as of the Closing Date, returned to or forfeited by tenants under Leases to the extent permitted or required by such Lease), with interest required by the Leases or by applicable law accrued thereon through the Closing Date, and any prepaid rentals actually paid to or received by the Seller for periods subsequent to the Closing (collectively, the “Security Deposits”).  The foregoing provisions of this paragraph shall survive the Closing and delivery of the Deeds.
(vi)    Closing Date Treatment; Property Manager Fees and Expenses.  In making the prorations required by this Section 6(E), the economic burdens and benefits of ownership of the Property for the Closing Date shall be allocated to the Purchaser.  All fees and expenses accrued and/or due to any Property Manager as of the Closing Date shall be paid in full by the Seller not later than the Closing Date and receipts therefore shall be delivered to the Purchaser.  
(vii)    Survival.  The provisions of this Section 6(E) shall survive the Closing.
F.    Conditions Precedent To Obligations of Purchaser.  The obligation of Purchaser to consummate the transaction hereunder shall be subject to the fulfillment on or before the Closing Date of all of the following conditions, any or all of which may be waived by Purchaser in its sole discretion:
(i)    Seller shall have delivered to Purchaser all of the items required to be delivered to Purchaser pursuant to the terms of this Agreement, including but not limited to, those provided for in Sections 4(B) and 7(A). 

Page 17

(ii)    All of the representations and warranties of Seller contained in this Agreement shall be true and correct in all material respects as of the Closing Date.
(iii)    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 Closing Date. 
(iv)    The Title Company shall be prepared to deliver to Purchaser at Closing a marked title commitment, insuring Purchaser as owner of fee simple title to the Property subject only to the Permitted Exceptions. 
G.    Conditions Precedent To Obligations of Seller.  The obligation of Seller to consummate the transaction hereunder shall be subject to the fulfillment on or before the Closing Date of all of the following conditions, any or all of which may be waived by Seller in its sole discretion:
(i)    Seller shall have received the Purchase Price as adjusted pursuant to and payable in the manner provided for in this Agreement.
(ii)    Purchaser shall have delivered to Seller all of the items required to be delivered to Seller pursuant to the terms of this Agreement, including but not limited to, those provided for in Section 7(B).
(iii)    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.
(iv)    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 Closing Date.
(v)    [***] (“[***]”) shall have executed and delivered to Seller a legal, valid, binding and enforceable waiver of the yield maintenance payment provisions of the loan agreement between [***] and Seller, on terms satisfactory to Seller and [***] (the “Waiver”).
7.DELIVERIES AT CLOSING
A.    Seller’s Deliveries at Closing.  At Closing, the Seller shall deliver to, and the Purchaser’s obligations hereunder shall be subject to receipt by, Escrow Agent of each of the following for recordation, filing or delivery to the Purchaser, as applicable, upon Closing, the following with respect to Units owned by such the Seller:
(i)    a special or limited warranty deed (or local equivalent) with respect to each Unit, in the applicable form customarily used in the state in which such Unit is located as attached hereto as Exhibit H (each, a “Deed”), duly executed and acknowledged by the Seller, subject to any and all matters of record to the extent the same are valid and affect the Units, which Deed, upon proper recording by the Purchaser, shall be 

Page 18

sufficient to convey title to Purchaser in accordance with the requirements of Section 4(C).  The Purchaser and the Seller agree that a Deed may describe multiple Properties if multiple Properties being conveyed are located in the same county;
(ii)    a Bill of Sale and General Assignment, in the form attached hereto as Exhibit B (the “Bill of Sale”) duly executed by the Seller for the conveyance of all Personal Property owned by the Seller in the Property, if any;
(iii)    an Assignment and Assumption of Leases, in the form attached hereto as Exhibit C (the “Assignment of Leases”) duly executed by the Seller with respect to the Leases affecting the Units;
(iv)    a notice to all tenants of the Property in the form attached hereto as Exhibit D (“Tenant Notice Letter”) duly executed by the Seller, duplicate copies of which shall be sent by Seller promptly after Closing to each tenant under the Leases (which obligation shall survive the Closing of the Transaction);
(v)    possession of the Property, subject to the rights of any tenants under any Leases;
(vi)    a “non-foreign” certificate in the form attached hereto as Exhibit E (the “Non-Foreign Affidavit”) duly executed by the Seller in accordance with the Internal Revenue Code;
(vii)    a settlement statement setting forth the Purchase Price, the closing adjustments and prorations and the application thereof at the Closing (the “Settlement Statement”), duly executed by the Seller;
(viii)    documentation satisfactory to the Title Company to establish the due authorization of Seller’s sale of the Property and the authority of the signatory to this Agreement and the documents delivered by Seller pursuant to this Section 7(A) to execute the same on behalf of Seller, and such other evidence of the authority and capacity of the Seller and its representatives as the Title Company may reasonably require;
(ix)    any additional instruments, duly executed and appropriately acknowledged by the Seller, as may be necessary for the Seller to have complied with the terms of this Agreement; 
(x)    one or more owner’s affidavits or affidavits regarding debts and liens, as applicable in the states in which each Unit is located, as may be reasonably required by the Title Company, sufficient for the Title Company to delete any exceptions for parties in possession (other than tenants under the Leases, as tenants only) and mechanics’ or materialmen’s liens from any Purchaser’s Title Policy, other than Permitted Exceptions or Monetary Liens (provided that any such Monetary Liens are also Removed in accordance with Section 4(B));

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(xi)    to the extent applicable, all transfer tax returns which are required by law and the regulations issued pursuant thereto in connection with the payment of all state or local real property transfer taxes that are payable or arise as a result of the consummation of the transactions contemplated by this Agreement, in each case, as prepared by the Seller or the Title Company;
(xii)    a termination of any existing property management agreement with respect to the Real Property, duly executed by all parties to the existing property management agreement; 
(xiii)    to the extent applicable, an original 1099-S Certification duly executed by the Seller;
(xiv)    such other state-specific deliverables agreed to by Purchaser and Seller prior to the Closing Date or as otherwise required by applicable law; and
(xv)    a certificate stating that all of Seller's representations and warranties contained herein are true and correct as of the Closing Date or identifying any changes to such representations and warranties.
B.    Purchaser’s Deliveries at Closing.  At Closing, the Purchaser shall deliver to, and the Seller’s obligations hereunder shall be subject to receipt by, Escrow Agent of each of the following for recordation, filing or delivery to the Seller, as applicable, upon Closing, the following:
(i)    the Purchase Price, as adjusted for prorations and other adjustments to be made in accordance with Section 2(B);
(ii)    the Assignment of Leases, duly executed by the Purchaser;
(iii)    the Settlement Statement, duly executed by the Purchaser;
(iv)    such other evidence of the authority and capacity of the Purchaser and its representatives as the Title Company may reasonably require; 
(v)    any other documents as may be reasonably required by the Title Company and approved by the Purchaser; 
(vi)    any additional instruments, duly executed and appropriately acknowledged by the Purchaser, as may be necessary for the Purchaser to have complied with the terms of this Agreement; and
(vii)    a payoff letter with respect to the loan from [***] to Seller which contains the Waiver.
C.    Property Manager’s Deliveries at Closing.  At Closing, the Property Manager shall deliver to, and the Purchaser’s obligations hereunder shall be subject to receipt by, Escrow Agent 

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of each of the following for recordation, filing or delivery to the Purchaser and the Seller, as applicable, upon Closing, the following:
(i)    an updated Rent Roll with respect to those Leases in effect on the date one (1) Business Day prior to the Closing Date, in the same form and containing the same level of detail as the Rent Roll attached hereto; 
(ii)    notice letters to the applicable homeowners associations affecting any Unit (“HOAs”) regarding the sale of the Property setting forth Purchaser’s contact information and the Closing Date, together with any completed and signed forms required from Seller by the HOAs to evidence the sale of the Property from Seller to Purchaser; 
(iii)    a report showing the current status of any and all unpaid HOA charges  and assessments (the “HOA Violations”) as of the Closing Date; and
(iv)    a certificate stating that all of Property Manager's representations and warranties contained herein are true and correct as of the Closing Date or identifying any changes to such representations and warranties.
8.DEFAULT AND REMEDIES
A.    Default by the Seller.  If the Seller fails to perform any of its obligations under this Agreement and if the Purchaser is not in default of its obligations hereunder, the Purchaser shall notify the Seller in writing of the nature of and occurrence of the event of default and the Seller shall have five (5) business days to cure such event of default; provided, however, that if the default is a failure to close on the Closing Date, then no cure rights shall exist and this Agreement shall terminate.  If the Seller fails or refuses to cure such event of default, the Purchaser, at the Purchaser’s sole option, may either: (a) terminate this Agreement by delivering written notice to the Seller (and receive reimbursement of all of its reasonable pursuit costs), (b) seek the remedy of specific performance, or (c) waive said default and proceed to Closing without reduction or abatement of the Purchase Price and accept the Property subject to any such waived default.  Notwithstanding the foregoing, if specific performance is not available and such event of default is due to fraud, willful misconduct or bad faith of the Seller, the Purchaser shall be entitled to all rights and remedies available at law or in equity, including without limitation, the right to recover all damages which the Purchaser may suffer as a result of such breach (including, without limitation, reimbursement for Purchaser’s actual out-of-pocket costs and expenses incurred in connection with the transaction contemplated by this Agreement).  Except as set forth in Section 5(D)  hereof, nothing contained in this Agreement shall limit or otherwise affect any of the Purchaser’s rights or remedies against the Seller arising under any express indemnification of the Purchaser by the Seller set forth in this Agreement or arising from any breach or default by the Seller after the Closing of any obligations in this Agreement which are expressly provided to survive the Closing.
B.    Default by the Purchaser.  If Purchaser defaults in its obligation to close the transaction contemplated by this Agreement (all conditions benefitting Purchaser having been satisfied or waived in writing), then the Seller shall notify the Purchaser in writing of the occurrence 

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of the event of default and the Purchaser shall have five (5) days to cure such event of default.  If the Purchaser fails or refuses to timely cure such event of default, the Seller shall have the right to terminate this Agreement, which shall be the Seller’s sole and exclusive remedy and the parties shall have no further rights or obligations under this Agreement.  If the Closing occurs, nothing contained in this Agreement shall limit or otherwise affect any of the Seller’s rights or remedies against the Purchaser arising under any express indemnification of the Seller by the Purchaser set forth in this Agreement or arising from any breach or default by the Purchaser after the Closing of any obligations in this Agreement which are expressly provided to survive Closing.
C.    Attorney’s Fees.  Notwithstanding any limitation of remedies described above, if it shall be necessary for either the Purchaser or the Seller to commence litigation to enforce its rights pursuant to this Agreement because of the default of the other party, the prevailing party shall reimburse the non-prevailing party for its reasonable out-of-pocket attorneys’ fees and costs.
9.SELLER’S AND PROPERTY MANAGER’S COVENANTS
A.    Seller Covenants.  
(i)    From the Effective Date until the Closing (or the earlier termination of this Agreement), the Seller shall (or shall instruct the Property Manager consistent with the terms of the Existing PMA to):
(a)    operate and maintain the Property in substantially the same manner as it has heretofore operated and maintained the same in its normal course of business;
(b)    use commercially reasonable efforts consistent with past practice, to keep each of the Properties free from damage, maintain each of the Properties in good physical condition and not permit waste to occur with respect any of the Properties; 
(c)    continue in the ordinary course of business to timely pay all bills and other payments due prior to the Closing with respect to the operation of the Property, subject to proration as set forth in Section 6 of this Agreement;
(d)    maintain its current insurance policies (or comparable substitutions thereof) in full force and effect through the Closing except for any modifications in the ordinary course of the Seller’s business, which modifications are consistent with past practice;
(e)    perform, when due, all material obligations under any and all agreements relating to the Property and otherwise in accordance with applicable laws, ordinances, rules, and regulations;
(f)    not intentionally take any action which causes any of the representations or warranties in this Agreement to become untrue or be violated; and 

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(g)    not take any action that would reasonably be expected to have a material adverse effect on a Property;
(h)    not encumber any Real Property with any additional encumbrances without the prior written consent of Purchaser; and
(i)    promptly notify Purchaser of the Seller’s receipt of written notice of (x) any material casualty or condemnation affecting any Unit or threatened condemnation affecting any Real Property, (y) any violation of laws applicable to any Unit which violation would reasonably be expected to have a material adverse effect on such Unit, and (z) any litigation affecting the Property which litigation would reasonably be expected to have a material adverse effect on the Property.
(ii)    Leases.  Any new lease signed between the Effective Date and the Closing shall satisfy the requirements of an Eligible Lease (as defined below), and a copy thereof shall be delivered to Purchaser prior to the Closing.  The Seller shall pay all brokerage commissions and finders’ fees applicable to all Leases in effect as of the date of this Agreement and any commissions and finders’ fees, to the extent consistent with such commissions and fees paid by the Seller prior to the Effective Date, with respect to any new leases entered into after the Effective Date shall be paid by the Purchaser.  
For purposes of this Agreement, “Eligible Lease” shall mean a lease for a Property that satisfies all of the following:
(a)    the form of lease reflects customary market standard terms;
(b)    the lease is entered into on an arms-length basis without payment support by the Seller or its partners, representatives, employees, agents or affiliates; provided, that any incentives offered to tenants shall not be deemed to constitute such payment support;
(c)    the lease is to a bona fide third-party tenant;
(d)    the lease is in compliance with all applicable laws, ordinances, rules, and regulations in all material respects; and
(e)    the lease is consistent with the Property Manager’s internal leasing guidelines.

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B.    Property Manager Covenants.  
(i)    From the Effective Date until the Closing (or the earlier termination of this Agreement), the Property Manager shall:
(a)    promptly notify Purchaser and Seller of the Property Manager’s receipt of written notice of (x) any material casualty or condemnation affecting any Unit or threatened condemnation affecting any Real Property, (y) any violation of laws applicable to any Unit which violation would reasonably be expected to have a material adverse effect on such Unit, and (z) any litigation affecting the Property of which Property Manager receives written notice, which litigation would reasonably be expected to have a material adverse effect on the Property, and by its execution of this Agreement, Seller consents to all such disclosures; and
(b)    prior to the Closing Date, market the Property for lease in the ordinary course of its business and subject to the terms of Section 9(A)(ii) above;
10.MISCELLANEOUS
A.    Condemnation.  If, before the Closing, all or a material part of any individual Unit is taken by condemnation, eminent domain or by agreement in lieu thereof or any proceeding to acquire, take or condemn all or a material part of a Unit is threatened or commenced against any Unit, the Seller shall, upon Knowledge by the Seller of such proceedings, give the Purchaser prompt written notice thereof.  The Purchaser shall have no right to exclude such affected Property, but shall be entitled to (and the Seller shall irrevocably assign to the Purchaser at the Closing) all of the Seller’s right, title and interest in and to any awards and proceeds of the taking, and the Purchaser shall receive a credit, at the Closing, for all awards and proceeds previously actually received by the Seller, after the reasonable, out-of-pocket costs and expenses of collection are deducted therefrom, but there shall be no adjustment to the Purchase Price.
B.    Damage or Destruction.  If before the Closing any individual Property becomes  subject to a casualty, the Seller shall, upon Knowledge by the Seller of such casualty, give the Purchaser prompt written notice thereof.  The Purchaser shall have no right to exclude such affected Property, but shall be entitled to (and the Seller shall irrevocably assign to the Purchaser at the Closing) the Seller shall assign to Purchaser all rights of Seller in and to any insurance proceeds payable thereafter with respect to such affected Property and the Purchaser shall receive a credit against the Purchase Price in an amount of (i) any deductible related to the insurance for such affected Property and (ii) the amount of any uninsured loss or other loss under insurance which is not accessible to Purchaser.
Subject to Section 10(A) and (B), the risk of loss, damage or destruction to the Property by fire or other casualty or the taking of all or part of the Property by condemnation or eminent domain or by an agreement in lieu thereof until the Closing is assumed by Seller.

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C.    Notice.  All notices herein required shall be in writing and shall be served on the parties at the addresses or email addresses set forth below.  Notices shall be deemed to have been properly delivered: (a) upon receipt when hand delivered during normal business hours, or the following business day if hand delivered after normal business hours or on a day which is not a business day; (b) upon the day of delivery if the notice has been deposited in an authorized receptacle of the United States Postal Service as first-class, registered or certified mail, postage prepaid, with a return receipt requested; provided, that, the sender has in its possession the return receipt to prove actual delivery; (c) one (1) business day after the notice has been deposited with either Federal Express or United Parcel Service or similar nationally recognized overnight carrier to be delivered by overnight delivery; provided, that, the sending party receives a confirmation of actual delivery from the courier; or (d) upon delivery when sent by email transmission to the email address set forth herein.
	
		
	If to the Purchaser:
	

c/o Connorex-Lucinda, LLC
1505 King Street Ext., Suite 100
Charleston, South Carolina 29405
Attention: Ralph Nacey
Email address: rnacey@con-rex.com

And to:

[***]

	With a copy to:
	King & Spalding LLP
1180 Peachtree Street
Atlanta, Georgia 30309
Attention: Joshua M. Kamin
Email address: jkamin@kslaw.com

And to:

Bryan Cave Leighton Paisner, LLP
1201 West Peachtree Street, Suite 1400
Atlanta, Georgia 30309
Attention: Todd Wade
Email address: todd.wade@bclplaw.com

	If to the Seller:
	SFR MT LLC
245 Park Avenue, 26th Fl.
New York, New York 10167
Attention: Raul E. Moreno
Email address: rmoreno@angelogordon.com

	With a copy to:
	Hunton Andrews Kurth LLP
Bank of America Plaza, Suite 3500
Charlotte, North Carolina 28280
Attention: Robert J. Hahn
Email address: rhahn@hunton.com

Page 25

	
		
	If to the Property Manager:
	

c/o Connorex-Lucinda, LLC
1505 King Street Ext., Suite 100
Charleston, South Carolina 29405
Attention: Eric Phillipps
Email address: ephillipps@con-rex.com

	With a copy to:
	Bryan Cave Leighton Paisner, LLP
1201 West Peachtree Street, Suite 1400
Atlanta, Georgia 30309
Attention: Todd Wade
Email address: todd.wade@bclplaw.com

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D.    Time is of the Essence.  Time is of the essence of this contract.  If the time period by which any right, option or election provided under this Agreement must be exercised, or by which any act required hereunder must be performed, or by which the Closing must be held, expires on a Saturday, Sunday or legal or bank holiday, then such time period shall be automatically extended through the close of business on the next regularly scheduled business day.  Unless otherwise specified in this Agreement, any reference to “days” shall mean “calendar days”.
E.    Counterpart Execution.  This Agreement may be executed in several counterparts, each of which shall be fully effective as an original and all of which together shall constitute one and the same instrument.  Signatures to this Agreement transmitted by facsimile or PDF shall be valid and effective to bind the party so signing.
F.    Effective Date.  The Effective Date of this Agreement shall be the date that this Agreement is last signed by all of the parties hereto.
G.    Governing Law.  This Agreement shall be governed by, and construed in accordance with, the law of the State of New York, without giving effect to any conflict of laws principles other than those contained in Section 5-1401 and Section 5-1402 of the General Obligations Law of the State of New York.
H.    Integration; Modification; Waiver.  This Agreement constitutes the complete and final expression of the agreement of the parties relating to the Property, and supersedes all previous contracts, agreements, and understandings of the parties, either oral or written, relating to the Property.  This Agreement cannot be modified, or any of the terms hereof waived, except by an instrument in writing (referring specifically to this Agreement) executed by the party against whom enforcement of the modification or waiver is sought.
I.    Headings; Construction.  The headings which have been used throughout this Agreement have been inserted for convenience of reference only and do not constitute matter to be construed in interpreting this Agreement.  Words of any gender used in this Agreement shall be held and construed to include any other gender and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise.  The words “herein,” “hereof,” “hereunder” and other similar compounds of the words “here” when used in this Agreement shall refer to the entire Agreement and not to any particular provision or section.  The Seller and the Purchaser acknowledge that each party and its counsel have taken the opportunity to review and revise this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party will not be employed in the interpretation of this Agreement or any amendments or exhibits to this Agreement.
J.    Invalid Provisions.  If any one or more of the provisions of this Agreement, or the applicability of any such provision to a specific situation, shall be held invalid or unenforceable, such provision shall be modified to the minimum extent necessary to make it or its application valid and enforceable, and the validity and enforceability of all other provisions of this Agreement and all other applications of any such provision shall not be affected thereby.

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K.    Binding Effect; Successors and Assignment.  This Agreement shall be binding upon and inure to the benefit of the Seller and the Purchaser, and their respective heirs, personal representatives, successors and assigns; provided, however, that neither party hereto shall assign this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld.  Furthermore, any permitted assignee of the Purchaser hereunder shall re-affirm the representations, warranties and indemnifications set forth in Section 5 of this Agreement.
L.    No Lien.  This Agreement is not and shall not be deemed or considered to convey or be an interest in or lien against the Property.
M.    No Recording.  In no event shall this Agreement or any memorandum or affidavit hereof be recorded by the Purchaser in any public records.  Any such recordation or attempted recordation shall constitute a breach of this Agreement by the Purchaser, and, in addition to the other remedies provided for herein, the Seller shall have the express right to terminate this Agreement by filing a notice of said termination in the real estate records of the jurisdiction where each Property is located.
N.    Exhibits.  All references to Exhibits contained herein are references to Exhibits attached hereto, all of which are made a part hereof for all purposes the same as if set forth herein verbatim, it being expressly understood that if any Exhibit attached hereto which is to be executed and delivered at Closing contains blanks, the same shall be completed correctly and in accordance with the terms and provisions contained herein and as contemplated herein prior to or at the time of execution and delivery thereof.
O.    Brokers.  All negotiations relative to this Agreement and the purchase and sale of the Property as contemplated by and provided for in this Agreement have been conducted by and between the Seller and the Purchaser without the intervention of any person or other party as agent or broker.  The Seller and the Purchaser shall and do each hereby indemnify, defend and hold harmless each other from and against the claims, demands, actions and judgments (including reasonable attorneys’ fees) of any and all brokers, agents and other intermediaries alleging a commission, fee or other payment to be owing by reason of their respective dealings, negotiations or communications in connection with this Agreement or the purchase and sale of the Property.
P.    Waiver of Jury Trial.  The Purchaser, the Seller and Escrow Agent hereby unconditionally and irrevocably waive, to the fullest extent permitted by law, the right to trial by jury in any action, proceeding or counterclaim, whether in contract, tort or otherwise, relating directly or indirectly to this Agreement.
Q.    Confidentiality.  Each of the parties hereto agrees that it will not use, or permit the use of, any of the information relating to the Seller or the Property, or the Purchaser respectively furnished to each other in connection with the Letter of Intent, dated September 24, 2019 (the “Letter of Intent”). by and among the Purchaser, [***] and Connorex-Lucinda, LLC, this Agreement or the Contemplated Transaction (as defined in the Letter of Intent) (collectively, the “Confidential Information”), except publicly available information.  None of the parties hereto will, and neither will the Purchaser’s directors, officers, employees, agents, affiliates, members, managers, partners, shareholders and other representatives, disclose, divulge, provide or make accessible any of the 

Page 28

Confidential Information to any person or entity, other than their responsible officers, employees, advisors or attorneys that need to know or otherwise as required by law or regulation.  The provisions of this Section 10(Q) shall survive any termination of this Agreement.

R.    Disclosure.  Without the prior written consent of the other party hereto, neither party hereto will, and each party hereto will cause its directors, officers, employees, agents, other representatives, members, managers, partners and affiliates not to, disclose to any person the fact that discussions or negotiations are taking place concerning the Letter of Intent, this Agreement or the Contemplated Transactions, the status thereof, or the existence of this Agreement and the terms hereof, unless in the opinion of such party disclosure is required to be made by applicable law, regulation or court order, and such disclosure is made after prior consultation with the other party.  Neither party will issue any public announcement concerning the Contemplated Transaction without the approval of the other party, except as may be required by law.
S.    Limitation on Liability.  Notwithstanding anything to the contrary contained herein (other than with respect to the Waiver), no direct or indirect member, partner, manager or other entity having a direct or indirect interest in, or management responsibility for, the affiliate of [***] which is a member of Purchaser (a “Purchaser ML Parent”), and no officer, director, trustee, shareholder, employee or other representative of the affiliate of [***] which is a member of Purchaser or of a Purchaser ML Parent (collectively, inclusive of Purchaser ML Parents, the “Purchaser ML Exculpated Parties”), shall have any liability under this Agreement whatsoever, and no Purchaser ML Exculpated Party shall now or hereafter be deemed to have any liability for, or have otherwise guaranteed, any obligations or other actions of Purchaser hereunder or otherwise relating to the transaction contemplated hereby (other than with respect to the Waiver).  For the avoidance of doubt, each of the Purchaser ML Parent and the Purchaser ML Exculpated Parties shall exclude the Property Manager or any affiliate thereof.  Seller, together with its successors and assigns, hereby irrevocably and unconditionally, now and forever (i) releases, remises, acquits and discharges each Purchaser ML Exculpated Party from and against any and all claims for relief, controversies, suits, actions, causes of action, liabilities, obligations, judgments, damages, expenses, claims, counterclaims, cross-claims or demands, in law or in equity, asserted or unasserted, express or implied, foreseen or unforeseen, real or imaginary, suspected or unsuspected, known or unknown, liquidated or non-liquidated, of any kind or nature or description whatsoever relating to this Agreement and transactions relating thereto (other than with respect to the Waiver), and (ii) covenants not to sue any Purchaser ML Exculpated Party on account of this Agreement or transactions relating thereto (other than with respect to the Waiver).
T.    State Specific Provisions.  Purchaser and Seller shall reasonably cooperate with each other to attach state specific Riders to this Agreement on or prior to the Closing Date. Such Riders attached to this Agreement will be a part of this Agreement, and in the event of any conflict between the terms of this Agreement and the Riders, the terms of the applicable Rider shall control. 

[SIGNATURES COMMENCE ON FOLLOW PAGE]

Page 29

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

	

	“SELLER”

SFR MT LLC, a Delaware limited liability company

By: /s/ Raul E. Moreno                              
Name: Raul E. Moreno
Title: Secretary

Date of Execution: 11/4/2019

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[Signature Page to Purchase and Sale Agreement]

[Signature Page to Purchase and Sale Agreement]

	
		
	 
	“PURCHASER”:

CONREX ML PORTFOLIO 2019-01 OPERATING COMPANY, LLC, a Delaware limited liability company

By: /s/ Whit Bundy                                        
Name: Whit Bundy
Title: Executive Vice President

Date of Execution: 11/4/2019

	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[Signature Page to Purchase and Sale Agreement]

Agreed, with respect to the provisions of
Sections 5(C) and 5(E):

CONREX PROPERTY MANAGEMENT, LLC, a Delaware limited liability company

By: /s/ Whit Bundy                          
Name: Whit Bundy
Title: Chief Operating Officer

[Signature Page to Purchase and Sale Agreement]

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