Document:

AGREEMENT OF PURCHASE AND SALE

 

THIS
AGREEMENT OF PURCHASE AND SALE (the “Agreement”) is by and between BR
CREEKSIDE LLC, a Delaware limited liability company (hereinafter called the “Seller”), and
PROMINENT REALTY GROUP OF GEORGIA, Inc. (“prg”), a Georgia corporation
or any entity controlling, controlled by or under common control with PRG, in accordance with Section 14.1 hereof (hereinafter
called the “Purchaser”).

 

ARTICLE I

 

DEFINITIONS

 

Section
1.1         As used in this Agreement, unless the context otherwise requires or it is otherwise herein expressly provided,
the following terms shall have the following meanings:

 

	CLOSING:	The consummation of the transaction contemplated by this Agreement and the recordation of the Deed (as defined in Section 13.2).
	 	 
	CLOSING DATE:  	On or before 4:00 p.m. (Eastern) on the date that is the thirtieth (30th) day following the expiration of the Inspection Period (as defined below); provided, however, that Purchaser shall have the right to extend the Closing Date, on a one-time-only basis, for an additional thirty (30) days by giving Seller at least five (5) Business Days written notice prior to the then effective Closing Date and remitting to the Escrow Agent, on such exercise, an additional Two Hundred Fifty Thousand Dollars ($250,000.00) (the “Extension Deposit”), which Extension Deposit shall be nonrefundable to Purchaser (except in the event of a Seller default) and be deemed fully earned by Seller upon receipt by the Escrow Agent, but which will, if Closing occurs, be applied to the Purchase Price.
	 	 
	IMPROVEMENTS:	The buildings, structures, fixtures and other improvements of every kind and nature situated on, in or under the Real Property, all of which comprise that certain multifamily asset commonly known as the “Reserve at Creekside Village Apartments” in Chattanooga, Tennessee.
	 	 
	INSPECTION PERIOD:	The period commencing on the Effective Date of this Agreement and ending at 5:00 p.m. (Eastern) on December 20, 2013.

 

    	 

    	 

    

 

	PERSONAL PROPERTY:	All of Seller's right, title and interest in and to fixtures; equipment; compressors; engines; electrical systems, fixtures and equipment; plumbing fixtures, systems and equipment; heating fixtures, systems and equipment; air conditioning fixtures, systems and equipment; furniture; refrigerators; dishwashers; disposals; ranges; range hoods; ovens; microwaves; carpets, drapes; maintenance equipment; washing machines and dryers; tools; landscaping; pool equipment; statuary; television antennae, systems and equipment; intercom equipment and systems; elevator fixtures, systems and equipment; central music systems and equipment; security and fire alarms, systems and equipment, and all other machinery; equipment; fixtures; automotive vehicles; carts; supplies; replacement parts; building materials and property of every kind and character, property name, website domain and computer passwords, all as listed on Exhibit A attached hereto, owned by Seller and used in connection with the operation of the Improvements.  In particular, Personal Property shall not include (A) any items owned by tenants or leased by Seller or owned by Seller’s property manager, Hawthorne Residential Partners, LLC (“Property Manager”), and (B) any trademarks, logos, trade colors, service marks and trade names of Seller, Bluerock Real Estate or Property Manager (collectively, the “Seller Trademarks”) and any advertising, promotional and similar materials which contain the Seller Trademarks, all of which may be removed by Seller prior to Closing.  Promptly after Closing, Purchaser will “banner” or otherwise temporarily mask the portion of all signage containing the Seller Trademarks to indicate the new ownership, failing which, upon five (5) days’ notice, Seller may do so at Purchaser's expense.
	 	 
	REAL

PROPERTY:	The real property located in Chattanooga, Tennessee and as more particularly described in Section 2.1(a) and on Exhibit B annexed hereto and made a part hereof.
	 	 
	TENANT LEASES:	All written leases, licenses, contracts and other agreements (including any and all amendments or other written modifications thereto and guaranties thereof) for the use or occupancy of any space in the Real Property or Improvements.
	 	 
	ESCROW AGENT	Madison Title Agency, LLC
	 	1125 Ocean Ave
	 	Lakewood NJ 08701
	 	Attention: Daniela Graca
	 	Transaction Manager
	 	daniela@madisoncres.com
	 	Phone: (732) 333-1026
	 	Fax: (732) 333-1027

 

    	2

    	 

    

 

Section
1.2         For purposes of determining the time for performance of various obligations under this Agreement, the effective
date of this Agreement (the "Effective Date") shall be the date this Agreement is executed by both Purchaser and
Seller and an original, photocopy or electronic copy of the fully-executed counterpart is delivered to the Escrow Agent, as evidenced
by the Escrow Agent's signature receipt of this Agreement.

 

Section
1.3         To the extent other terms are defined elsewhere in this Agreement, such terms shall have the meanings set forth
herein.

 

ARTICLE II

 

SALE
AND PURCHASE

 

Section
2.1         Subject to the terms and provisions hereof, Seller agrees to sell (or assign) to Purchaser, and Purchaser agrees
to purchase from Seller (or assume) the following (collectively, the "Property"):

 

(a)         Fee
simple title to the Real Property and Improvements, together with all of Seller's right, title and interest, if any, in and to
(i) all written easements and rights-of-way, and (ii) without warranty, all strips and gores and any land lying in the bed of any
street, road or avenue, in front of or adjoining the Real Property.

 

(b)         All
of Seller's right, title and interest, to the extent assignable, in and to:

 

(1)         All
plans and specifications, site plans, soil and substrata studies, architectural drawings, floor plans, and landscape plans relating
to the Real Property and Improvements, to the extent same are in Seller’s or Property Manager’s possession on the Effective
Date;

 

(2)         The
Miscellaneous Agreements (as defined in Section 6.1(a)(2) below), to the extent assigned to Purchaser; and

 

(3)         Except
as otherwise related to the Seller Trade Names, any and all intangible property related to the Property, including, without limitation,
all building and other permits or approvals, development rights or similar rights heretofore granted by any governmental authority
with respect to the construction and operation of the Improvements, and all warranties, guaranties and licenses, including roof
and construction warranties, relating to the ownership, use, operation and occupancy of the Real Property, Improvements or Personal
Property, to the extent assignable and to the extent same are in Seller’s or Property Manager’s possession on the Effective
Date.

 

(c)         The
Personal Property.

 

(d)         The
Tenant Leases.

 

    	3

    	 

    

 

ARTICLE III

 

CONSIDERATION
FOR CONVEYANCE

 

Section
3.1         Subject to the terms, conditions and provisions herein contained, Purchaser agrees to pay, and Seller agrees
to accept, as consideration for the conveyance of the Property, the sum of NINETEEN MILLION
SIX HUNDRED THOUSAND AND NO/100 DOLLARS ($19,600,000.00) (the “Purchase
Price”), which shall be payable in cash at the Closing. Prior to or at the consummation of the Closing, Purchaser shall
deliver to Title Company cash in an amount equal to the Purchase Price less the Earnest Money plus any expenses due to be reimbursed
by Purchaser to Seller hereunder as further adjusted by any other credits and prorations provided for herein. The balance of the
Purchase Price shall be paid at Closing by wire transfer of immediately available federal funds, transferred to the order or account
of the Title Company. Escrow Agent will, at the direction of the Title Company, wire the Earnest Money to the Title Company on
the date of Closing.

 

Section
3.2         In any event or circumstance in which Purchaser shall be entitled to the return of the Earnest Money, the amount
of ONE HUNDRED AND NO/100 DOLLARS ($100.00) (“Independent Agreement Consideration”) shall be withheld therefrom
and delivered to Seller, which amount the parties bargained for and agreed to as consideration for Seller's grant to Purchaser
of Purchaser's exclusive right to purchase the Property pursuant to the terms hereof and for Seller's execution, delivery and performance
of this Agreement. This Independent Agreement Consideration is in addition to and independent of any other consideration or payment
provided in this Agreement, is non-refundable under any circumstances and shall be retained by Seller notwithstanding any other
provisions of this Agreement.

 

ARTICLE IV

 

EARNEST
MONEY

 

Section
4.1         Within two (2) Business Days after the Effective Date, Purchaser shall deposit the sum of TWO HUNDRED
THOUSAND AND NO/100 DOLLARS ($200,000.00)
(hereinafter called the “First Earnest Money”), in good and sufficient funds, with the Escrow Agent. The Escrow
Agent shall, pending consummation of this transaction, hold the First Earnest Money in escrow in an interest bearing account at
a financial institution reasonably acceptable to Purchaser. Within one (1) Business Day following the expiration of the Inspection
Period, Purchaser shall deposit the sum of FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) (hereinafter called the “Second
Earnest Money”), in good and sufficient funds, with the Escrow Agent. The Escrow Agent shall, pending consummation of
this transaction, hold the Second Earnest Money in escrow in an interest bearing account at a financial institution reasonably
acceptable to Purchaser. The First Earnest Money, the Second Earnest Money, and the Extension Deposit, if made, together with any
interest earned thereon are hereinafter referred to as the “Earnest Money.” All interest earned on the Earnest
Money shall become a part of the Earnest Money and shall be delivered by Escrow Agent to the Title Company in accordance with Section
3.1 above and applied to the Purchase Price in the event the transaction contemplated hereby closes. Except as otherwise provided
herein, the Earnest Money shall be paid to Seller and otherwise credited against the Purchase Price at Closing. In the event the
transaction contemplated by this Agreement is not closed, then the Escrow Agent shall disburse the Earnest Money in the manner
provided for elsewhere herein.

 

    	4

    	 

    

 

Section
4.2         The Escrow Agent must sign this Agreement as evidence that the Escrow Agent agrees to be bound by the obligations
contained herein with respect to the Earnest Money.

 

ARTICLE V

 

TITLE
AND SURVEY

 

Section
5.1         Within three (3) Business Days after the Effective Date, Seller shall deliver to Purchaser the most recent existing
“as built” survey (“Existing Survey”) of the Real Property in Seller's possession or control. Purchaser
shall have the right to cause an update to the Existing Survey (such update, the “Survey”), dated subsequent
to the Effective Date, by a licensed surveyor. For purposes of the property description to be included in the Deed, the legal description
of the Real Property contained in the instrument by which Seller acquired its interest in the Real Property (the “Vesting
Deed Legal”) shall be used for all instruments hereunder; provided, however, if the legal description of the Real Property
contained in the Survey (the “Survey Legal”) differs from the Vesting Deed Legal, Seller shall, at Purchaser’s
request, further convey to Purchaser the Real Property as described by the Survey Legal via quitclaim deed. The cost of the Survey
shall be borne by Purchaser.

 

Section
5.2         Purchaser shall cause the Chattanooga office of Chicago Title Insurance Company (the “Title Company”),
at Purchaser’s expense, to deliver to Purchaser within ten (10) days from the Effective Date, a current owner’s title
policy commitment in the amount of the Purchase Price (hereinafter called the “Title Commitment”) for the issuance
of an owner’s policy of title insurance on the Real Property (the “Title Policy”) to Purchaser from Title
Company, together with best available copies of all documents (the “Underlying Documents”) constituting exceptions
to Seller's title as reflected in the Title Commitment.

 

    	5

    	 

    

 

Section
5.3         Purchaser shall deliver to Seller in writing such objections as Purchaser may have to anything contained or set
forth in the Title Commitment, the Existing Survey and the Survey (“Purchaser's Objection Notice”) within ten
(10) Business Days of receipt of the last of the Title Commitment, the Existing Survey and the Underlying Documents, but in no
event later than the fifth (5th) day following the end of the Inspection Period (Purchaser’s Objection Period”).
It is agreed and understood that the Purchaser’s Objection Period may extend beyond the Inspection Period. Any items disclosed
in the Existing Survey, Survey or Title Commitment to which Purchaser does not timely object during Purchaser’s Objection
Period shall be deemed acceptable to Purchaser and shall constitute Permitted Exceptions; provided, however if at any time after
the expiration of the Purchaser Objection Period and before the Closing, the Survey or an update to the Title Commitment discloses
any additional item that materially and adversely affects the operation of the Property as a multifamily asset and which was not
disclosed on any version of the Title Commitment or the Existing Survey (the “New Exception”) and such New Exception
was not created by, through or under Purchaser (or parties acting by or through Purchaser), Purchaser shall have a period of three
(3) Business Days from the date of its receipt of such update (the “New Exception Review Period”) to review
and notify Seller in writing of Purchaser’s objection to the New Exception (a “New Exception Objection Notice”).
Seller may, within three (3) Business Days of its receipt of any Purchaser’s Objection Notice or New Exception Objection
Notice, advise Purchaser in writing which objections (if any) noted therein it shall cure or cause to be cured prior to the Closing
(“Seller's Response”). In the event that Seller does not respond to any Purchaser’s Objection Notice or
New Exception Objection Notice, Seller shall be deemed to have declined to cure Purchaser’s objections noted therein. Seller
has no obligation to cure any title or survey exceptions except that Seller shall in all events be obligated to cause to be released
or insured at Closing all items Seller agrees to cure in Seller’s Response, and cause to be released at Closing the existing
mortgage loan in the original principal amount of $12,972,200 secured by the Property (the “Existing Loan”).
If, in Seller’s Response, Seller declines, or is deemed to have declined, to cure any item to which Purchaser objected in
any Purchaser’s Objection Notice or New Exception Objection Notice, Purchaser shall be entitled to terminate this Agreement
and receive a return of the Earnest Money; provided, however, Purchaser must exercise such right within
five (5) days following receipt of Seller's Response (whether actual or deemed to have been given by Seller by its failure to timely
deliver a Seller’s Response). In the event that Purchaser elects under such circumstances to proceed to Closing, any title
objections which Seller declines, or is deemed to have declined to cure, shall constitute Permitted Exceptions.

 

Section
5.4         “Permitted Exceptions” shall include (i) any items set forth on the Title Commitment, the
Existing Survey or the Survey accepted or deemed accepted by Purchaser; (ii) any laws, regulations or ordinances (including, but
not limited to, zoning, building and environmental matters) as to the use, occupancy, subdivision or improvement of the Property
adopted or imposed by any governmental agency; (iii) taxes and assessments which are secured by a lien, but which are not yet billed,
or are billed but are not yet due and payable and any assessments not shown on the public record, which taxes, assessments and
standby fees for the Closing Tax Year (as defined below, in Section 13.4(c)) shall be prorated at Closing in accordance
with Section 13.4; (iv) the rights of residential tenants, as residential tenants only, under the Tenant Leases; and (v)
the standard printed exceptions, stipulations and exclusions from coverage contained in the standard ALTA form of owner’s
policy of title insurance in use in Tennessee which cannot be removed by the performance of Seller’s obligations under this
Agreement.

 

ARTICLE VI

 

DELIVERY
OF DOCUMENTS

 

Section
6.1         Property Information.

 

(a)         Within
five (5) Business Days after the Effective Date hereof, Seller shall, to the extent in Seller’s or Property Manager’s
possession or control, furnish to Purchaser the following items (collectively, the “Property Information”):

 

(1)         A copy
of Seller's standard form of Tenant Lease and a “Rent Roll” (herein so called), or other reports containing
the applicable information, including an electronic version which shall include the tenant name, unit type, square footage, commencement
and expiration dates, the amount of any security deposit, the amount of any pet, storage or other fees, base rent, and any concessions,
prepared no earlier than five (5) days prior to the Effective Date.

 

    	6

    	 

    

 

(2)         All
service contracts, vending contracts, warranties, guaranties or other agreements affecting or pertaining to the construction, management
and operation of the Property (herein collectively, the “Miscellaneous Agreements”).

 

(3)         Copies
of the tax statements for 2013 on the Real Property, the Improvements and the Personal Property.

 

(4)         Operating
statements reflecting the income and expenses for the Property for the 2010, 2011 and 2012 calendar years and for the calendar
year 2013 to date. Such operating statements shall be in the form generated by Property Manager.

 

(5)         Copies
of all plans and specifications of all Improvements.

 

(6)         All
existing environmental reports and property condition reports.

 

(7)         Copies
of all other items listed on Exhibit L hereto, to the extent such information is not, in Seller’s judgment, confidential
or proprietary.

 

(b)         Immediately
following the Effective Date, but subject to the property visit notice requirement contained in Section 10.1, Seller shall
make available at the Property for Purchaser's review, (i) copies of all Tenant Leases, including amendments thereto and (ii) all
Tenant Lease files and all documents contained therein.

 

Section 6.2         NOTWITHSTANDING
THE PRIOR PROVISIONS OF THIS ARTICLE VI TO THE CONTRARY, PURCHASER ACKNOWLEDGES AND UNDERSTANDS THAT SOME OF THE MATERIALS DELIVERED
BY SELLER HAVE BEEN PREPARED BY THIRD PARTY CONTRACTORS, INCLUDING, BUT NOT LIMITED TO, PROPERTY MANAGER. EXCEPT AS EXPRESSLY SET
FORTH HEREIN OR IN THE DOCUMENTS DELIVERED AT CLOSING, SELLER MAKES NO REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED,
AS TO THE COMPLETENESS, CONTENT OR ACCURACY OF THE DELIVERED MATERIALS WHICH WERE PREPARED BY SUCH THIRD PARTY CONTRACTORS. 

 

ARTICLE VII

 

REPRESENTATIONS
AND WARRANTIES

 

Section
7.1         Seller represents and warrants to Purchaser as of the Effective Date, and as of the Closing Date, that:

 

(a)         Seller
is a duly organized and validly existing limited liability company, is in good standing in Delaware and the State of Tennessee,
has the requisite power and authority to enter into and perform this Agreement and the transactions contemplated hereby, and Seller
has duly authorized the execution of this Agreement.

 

    	7

    	 

    

 

(b)         To
Seller's knowledge, (1) the list of Tenant Leases set forth on the Rent Roll is true, correct and complete in all material respects
and (2) except as expressly set forth in the Tenant Leases, there are no unpaid landlord obligations for tenant improvements that
are payable after Closing in connection with the current term of Tenant Leases entered into prior to the Effective Date.

 

(c)         Seller
has not received any direct written notice of any existing, pending, or threatened eminent domain, condemnation proceedings, or
other governmental taking of the Property or any part thereof and, to Seller’s knowledge, no such proceedings have been threatened
in writing.

 

(d)         There
are not any Miscellaneous Agreements other than those which are listed on Exhibit C attached hereto, true, correct and complete
copies of which will be delivered or made available to Purchaser pursuant to Section 6.1(a)(2) above. Purchaser shall notify
Seller in writing on or prior to the end of the Inspection Period of any Miscellaneous Agreements which it elects not to assume
in connection with its purchase of the Property. To the extent that such Miscellaneous Agreements can be terminated by Seller at
no additional cost to Seller, or Purchaser elects to pay the cost of any such termination, then upon request by Purchaser, Seller
shall terminate, or initiate the termination of, all such Miscellaneous Agreements not assumed by Purchaser in accordance with
the terms of such Miscellaneous Agreements on or prior to the Closing. If Purchaser consummates this transaction by Closing, Purchaser
shall be required to assume all Miscellaneous Agreements that may not be terminated with less than thirty (30) days’ notice
or that cannot be terminated without additional cost to Seller (unless Purchaser has elected to pay such termination costs).

 

(e)         Seller
has not received written notice of any pending litigation against Seller with respect to the Property except as set forth on Exhibit
D attached hereto.

 

(f)          Seller
has not received, from any governmental authority or regulatory agency, any written notice alleging a violation of any law, rule,
regulation or order, that has not been cured prior to the Effective Date, relating to environmental conditions by reason of the
presence of hazardous substances or materials (as such terms are presently used under applicable environmental laws, rules and
regulations) at the Property.

 

(g)         To
Seller’s knowledge, the execution and delivery of this Agreement by Seller and the performance by Seller of its obligations
under this Agreement and the completion of the transfer of the Property contemplated by this Agreement will not conflict with or
result in (i) a breach of, or a default under, any contract, agreement, commitment or other document or instrument to which Seller
(or any of its members) is a party or by which Seller, or the Property, is bound; or (ii) a violation of any law, rule, ordinance,
regulation or rule of any governmental authority applicable to Seller or any judgment, order or decree of any court or governmental
authority that is binding on Seller or the Property.

 

    	8

    	 

    

 

(h)         All
apartment units will be leased and occupied at Closing or, if vacant at least five (5) Business Days prior to Closing, will be
in “Rent Ready” condition (in accordance with the customs and standards of the Property Manager). With respect to any
apartment unit which is (i) vacated within five (5) Business Days before the Closing Date and (ii) not in Rent Ready condition
on the Closing Date, Purchaser shall be entitled to receive a $500.00 credit at Closing for each such unit. For purposes of this
Agreement, an apartment unit shall be “Rent Ready” if its condition is consistent with the condition of units
currently being marketed to and accepted for rental by tenants of the Property.

 

(i)          Seller
represents, warrants, and covenants to Purchaser that Seller, and all beneficial owners thereof, are in compliance with all laws,
statutes, rules and regulations of any federal, state or local governmental authority in the United States of America applicable
to such Persons (defined below), including, without limitation, the requirements of Executive Order No. 13224, 66 Fed. Reg. 49079
(Sept. 25, 2001) (the “Order”) and other similar requirements contained in the rules and regulations of the
Office of Foreign Asset Control, Department of the Treasury (“OFAC”) and in any enabling legislation or other
executive orders in respect thereof (the Order and such other rules, regulations, legislation or orders are collectively called
the “Orders”).

 

(j)          Seller
represents, warrants, and covenants to Purchaser that neither Seller nor any beneficial owner thereof:

 

(1)         is listed
on the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other list
of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other
applicable Orders (such lists are collectively referred to as the “Lists”);

 

(2)         is a
Person who has been determined by competent authority to be subject to the prohibitions contained in the Orders; and

 

(3)         is owned
or controlled by, nor acts for or on behalf of, any Person on the Lists or any other Person who has been determined by competent
authority to be subject to the prohibitions contained in the Orders.

 

Seller and Purchaser shall each promptly
advise the other in writing if either of them become aware of any representation or warranty contained in this Section 7.1
having become materially false or misleading prior to the Closing Date; provided, however, the delivery
of such notification shall not waive the right of Purchaser to object thereto. All references in this Section 7.1 or elsewhere
in this Agreement and/or in any other document or instrument executed by Seller in connection with or pursuant to this Agreement,
to “Seller’s knowledge” or “to the knowledge of Seller” and words of similar import shall refer solely
to facts within the actual knowledge (without independent investigation or inquiry) of Phillip M. Payonk, Chief Investment Officer
of Property Manager, and shall not be construed to refer to the knowledge of any other employee, officer, director, member, shareholder
or agent of Seller, Property Manager or any affiliate of Seller, and shall in no event be deemed to include imputed or constructive
knowledge. Seller hereby affirms that Phillip M. Payonk is reasonably familiar with and has substantial knowledge of the facts
regarding the Property, its condition, and its historical performance during the period of the Seller’s ownership thereof.
Nothing in this Section 7.1 or the remainder of this Agreement shall give rise to any personal liability to the foregoing
named parties. The representations and warranties contained in this Section 7.1 shall survive Closing for a period of six
(6) months; further, in no event shall Purchaser make any claim under this Section 7.1 unless the total amount of all claims
exceeds $10,000.00. Any claims hereunder by Purchaser shall be likewise subject to the terms of Article XVII below.

 

    	9

    	 

    

 

Section
7.2         Purchaser represents and warrants to Seller as of the date hereof, and as of the Closing Date, that:

 

(a)         Purchaser
has all requisite power and authority to enter into and perform this Agreement and the transactions contemplated hereby, and Purchaser
has duly authorized the execution of this Agreement.

 

(b)         Purchaser
is a duly organized Georgia corporation, is or will be as of the Closing Date in good standing in the State of Tennessee, has the
requisite authority to enter into and perform this Agreement and the transactions contemplated hereby, and Purchaser has duly authorized
the execution of this Agreement, such that this Agreement is a valid, binding and enforceable obligation of Purchaser, subject
to bankruptcy and other debtor relief laws or principals of equity.

 

(c)         The
execution and delivery of this Agreement by Purchaser and the performance by Purchaser of its obligations under this Agreement
and the completion of the transfer of the Property contemplated by this Agreement will not result in (i) a breach of, or a default
under, any contract, agreement, commitment or other document or instrument to which Purchaser is party or by which Purchaser is
bound or (ii) a violation of any law, ordinance, regulation or rule of any governmental authority applicable to Purchaser or any
judgment, order or decree of any court or governmental authority that is binding on Purchaser.

 

(d)         Purchaser
represents, warrants, and covenants to Seller that Purchaser, and all beneficial owners thereof, are in compliance with all laws,
statutes, rules and regulations of any federal, state or local governmental authority in the United States of America applicable
to such Persons, including, without limitation, the requirements of the Orders.

 

(e)         Purchaser
represents, warrants, and covenants to Seller that neither Purchaser, nor any beneficial owner thereof:

 

(1)         is listed
on the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other Lists.

 

(2)         is a
Person who has been determined by competent authority to be subject to the prohibitions contained in the Orders;

 

    	10

    	 

    

 

(3)         is owned
or controlled by, nor acts for or on behalf of, any Person on the Lists or any other Person who has been determined by competent
authority to be subject to the prohibitions contained in the Orders;

 

(4)         any
Assignee and its beneficial owners shall comply with the foregoing provisions effective as of the date of any assignment of rights
and obligations as set forth in this Agreement. Any purported assignment to any Assignee that does not comply with the foregoing
provisions shall be null and void.

 

(f)          Purchaser’s
representations, warranties, and covenants in this Section shall survive Closing.

 

(g)         As
used in this Section 7.2, the term “Person” means any individual, corporation, partnership, joint venture,
association, joint stock company, trust, trustee, estate, limited liability company, unincorporated organization, real estate investment
trust, government or any agency or political subdivision thereof, or any other form of entity.

 

ARTICLE VIII

 

CONDITION
OF PROPERTY

 

Section
8.1         No Warranties. THE ENTIRE AGREEMENT BETWEEN THE SELLER AND PURCHASER WITH RESPECT TO THE PROPERTY AND
THE SALE THEREOF IS EXPRESSLY SET FORTH IN THIS AGREEMENT. THE PARTIES ARE NOT BOUND BY ANY AGREEMENTS, UNDERSTANDINGS, PROVISIONS,
CONDITIONS, REPRESENTATIONS OR WARRANTIES (WHETHER WRITTEN OR ORAL AND WHETHER MADE BY SELLER OR ANY AGENT, EMPLOYEE, MEMBER, OFFICER
OR PRINCIPAL OF SELLER OR ANY OTHER PARTY) OTHER THAN AS ARE EXPRESSLY SET FORTH AND STIPULATED IN THIS AGREEMENT AND IN THE DEED
DELIVERED AT CLOSING. WITHOUT IN ANY MANNER LIMITING THE GENERALITY OF THE FOREGOING, PURCHASER ACKNOWLEDGES THAT THE CONSUMMATION
OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT SHALL SIGNIFY THAT PURCHASER AND IT AND ITS REPRESENTATIVES HAVE FULLY INSPECTED
THE PROPERTY, THE TENANT LEASES AND MISCELLANEOUS AGREEMENTS AND ARE FULLY FAMILIAR WITH THE FINANCIAL AND PHYSICAL (INCLUDING,
WITHOUT LIMITATION, ENVIRONMENTAL) CONDITION THEREOF, AND THAT THE PROPERTY, THE TENANT LEASES AND MISCELLANEOUS AGREEMENTS WILL
BE PURCHASED BY PURCHASER IN AN “AS IS” AND “WHERE IS” CONDITION AND WITH ALL EXISTING DEFECTS (PATENT
AND LATENT) AS A RESULT OF SUCH INSPECTIONS AND INVESTIGATIONS AND NOT IN RELIANCE ON ANY AGREEMENT, UNDERSTANDING, CONDITION,
WARRANTY (INCLUDING, WITHOUT LIMITATION, WARRANTIES OF HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE) OR REPRESENTATION
MADE BY SELLER OR ANY AGENT, EMPLOYEE, MEMBER, OFFICER OR PRINCIPAL OF SELLER OR ANY OTHER PARTY (EXCEPT FOR REPRESENTATIONS EXPRESSLY
PROVIDED IN THIS AGREEMENT AND IN THE DEED DELIVERED AT CLOSING) AS TO THE FINANCIAL OR PHYSICAL (INCLUDING, WITHOUT LIMITATION,
ENVIRONMENTAL) CONDITION OF THE PROPERTY OR THE AREAS SURROUNDING THE PROPERTY, OR AS TO ANY OTHER MATTER WHATSOEVER, INCLUDING,
WITHOUT LIMITATION, AS TO ANY PERMITTED USE THEREOF, THE ZONING CLASSIFICATION THEREOF OR COMPLIANCE THEREOF WITH FEDERAL, STATE
OR LOCAL LAWS, AS TO THE INCOME OR EXPENSE IN CONNECTION THEREWITH, OR AS TO ANY OTHER MATTER IN CONNECTION THEREWITH. PURCHASER
ACKNOWLEDGES THAT, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED ELSEWHERE IN THIS AGREEMENT AND IN THE DEED DELIVERED AT CLOSING, NEITHER
SELLER, NOR ANY AGENT, MEMBER, OFFICER, EMPLOYEE OR PRINCIPAL OF SELLER NOR ANY OTHER PARTY ACTING ON BEHALF OF SELLER (INCLUDING
PROPERTY MANAGER AND ITS EMPLOYEES) HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY SUCH AGREEMENT, CONDITION, REPRESENTATION
OR WARRANTY EITHER EXPRESSED OR IMPLIED. THIS SECTION 8.1 SHALL SURVIVE CLOSING AND DELIVERY OF THE DEED, AND SHALL BE DEEMED
INCORPORATED BY REFERENCE AND MADE A PART OF ALL DOCUMENTS DELIVERED BY SELLER TO PURCHASER IN CONNECTION WITH THE SALE OF THE
PROPERTY.

 

    	11

    	 

    

 

Section
8.2         Change of Conditions. SUBJECT TO SELLER'S OBLIGATIONS UNDER ARTICLE IX BELOW, PURCHASER SHALL ACCEPT
THE PROPERTY AT THE TIME OF CLOSING IN SUBSTANTIALLY THE SAME CONDITION AS THE SAME IS AS OF THE EFFECTIVE DATE, AS SUCH CONDITION
SHALL HAVE CHANGED BY REASON OF NORMAL WEAR AND TEAR AND NATURAL DETERIORATION AND, SUBJECT TO SECTIONS 11.1 AND 11.2
BELOW, CONDEMNATION OR DAMAGE BY FIRE OR OTHER CASUALTY AND, EXCEPT AS SPECFICALLY SET FORTH IN THIS AGREEMENT, PURCHSER SHALL
HAVE NO RIGHT TO NOT PROCEED TO CLOSING BASED ON ANY CHANGE IN SUCH CONDITION. EXCEPT AS PROVIDED IN ARTICLE IX BELOW, SELLER
HAS NO OBLIGATION TO MAKE ANY REPAIRS OR REPLACEMENTS REQUIRED BY REASON OF NORMAL WEAR AND TEAR, NATURAL DETERIORATION OR CONDEMNATION
OR FIRE OR OTHER CASUALTY, BUT MAY, AT ITS OPTION AND ITS COST (INCLUDING THE USE OF INSURANCE PROCEEDS AS HEREIN PROVIDED), MAKE
ANY SUCH REPAIRS AND REPLACEMENTS PRIOR TO THE CLOSING DATE. EXCEPT WITH RESPECT TO ANY CLAIMS BROUGHT BY PURCHASER WITH RESPECT
TO ANY OF SELLER'S REPRESENTATIONS IN ACCORDANCE WITH THE TERMS OF SECTION 7.1 ABOVE, PURCHASER, ITS SUCCESSORS AND ASSIGNS,
AND ANYONE CLAIMING BY, THROUGH OR UNDER PURCHASER, HEREBY FULLY RELEASES SELLER AND ITS INDEMNIFIED PARTIES FROM, AND IRREVOCABLY
WAIVES ITS RIGHT TO MAINTAIN, ANY AND ALL CLAIMS AND CAUSES OF ACTION THAT IT OR THEY MAY NOW HAVE OR HEREAFTER ACQUIRE AGAINST
SELLER OR ITS INDEMNIFIED PARTIES WITH RESPECT TO ANY AND ALL LOSSES ARISING FROM OR RELATED TO ANY DEFECTS, ERRORS, OMISSIONS
OR OTHER CONDITIONS AFFECTING THE PROPERTY.

 

    	12

    	 

    

 

SUBJECT TO THE SELLER’S COMPLIANCE
WITH ITS OBLIGATIONS UNDER SECTION 9.1 BELOW, PURCHASER AGREES THAT THE DEPARTURE OR REMOVAL, PRIOR TO CLOSING, OF ANY OF TENANTS
SHALL NOT BE THE BASIS FOR, NOR SHALL IT GIVE RISE TO, ANY CLAIM ON THE PART OF PURCHASER, NOR SHALL IT AFFECT THE OBLIGATIONS
OF PURCHASER UNDER THIS AGREEMENT IN ANY MANNER WHATSOEVER; AND PURCHASER SHALL CLOSE TITLE AND ACCEPT DELIVERY OF THE DEED WITH
OR WITHOUT SUCH TENANTS IN POSSESSION AND WITHOUT ANY ALLOWANCE OR REDUCTION IN THE PURCHASE PRICE UNDER THIS AGREEMENT. PURCHASER
HEREBY RELEASES SELLER FROM ANY AND ALL CLAIMS AND LIABILITIES RELATING TO THE FOREGOING MATTERS.

 

Section
8.3         Seller Reports. Purchaser acknowledges that, except as expressly set forth herein and in the documents
delivered at the Closing, Seller makes no warranties or representations regarding the adequacy, accuracy or completeness of Seller’s
environmental reports or other third-party produced materials or other documents relating to the Property made available to Purchaser
(collectively, the “Reports”), and Purchaser shall have no claim against Seller based upon the Reports. Further,
Purchaser shall have no right to rely on any third party reports delivered by Seller to Purchaser, unless Purchaser has received
the third party report provider’s express permission to rely thereon, at Purchaser’s sole expense. Purchaser further
acknowledges that, subject to the terms of Section 10.1 below, Purchaser has had (or will have, prior to Closing) a full
opportunity to perform such physical inspections, environmental and engineering investigations and appraisals of the Property as
Purchaser deems appropriate prior to Closing, and Purchaser obtained or shall have the opportunity to obtain its own physical inspections,
environmental and engineering reports and appraisals of the Property. Upon termination of this Agreement, Purchaser agrees to provide
Seller (without any representation or warranty whatsoever and without any liability with respect to the content thereof) with copies
of all environmental and engineering reports obtained by Purchaser with respect to the Property.

 

Section
8.4        Effect of Disclaimers. Purchaser acknowledges and agrees that the Purchase Price has been negotiated to
take into account that the Property is being sold subject to the provisions of this Article VIII and that Seller would have
charged a higher purchase price if the provisions in this Article VIII were not agreed upon by Purchaser.

 

Section
8.5         Survival. The provisions of this Article VIII shall survive Closing and delivery of the Deed.

 

ARTICLE IX

 

COVENANTS

 

Section
9.1         From the Effective Date until the Closing Date or earlier termination of this Agreement, Seller shall:

 

(a)         operate
the Property in the same manner Seller has historically operated the Property and perform all customary and ordinary repairs to
the Property as Seller has customarily previously performed to maintain them in substantially the same condition as they are as
of the Effective Date of this Agreement. In connection herewith, Seller shall have the right to continue to enforce all of its
rights against any and all tenants, guests or property occupants of the Property.

 

    	13

    	 

    

 

(b)         keep,
observe, and perform its obligations as landlord under the Tenant Leases in the same manner Seller has historically operated the
Property. Seller shall be entitled to enter into new Tenant Leases without Purchaser’s consent provided same are done on
Seller’s standard lease form.

 

(c)         not
enter into any written or oral service contract or other service agreement with respect to the Property that will not be fully
performed by Seller on or before the Closing Date, or that will not be cancelable by Purchaser without liability, penalty or premium
upon no greater than thirty (30) days’ notice, without the prior written consent of Purchaser, which consent may not be unreasonably
withheld, conditioned or delayed.

 

(d)         advise
Purchaser promptly of any litigation (other than tenant eviction or collection proceedings), arbitration, or administrative hearing
before any governmental agency, including condemnation proceedings, concerning or affecting the Property which is instituted or
threatened after the Effective Date of which Seller has received written notice.

 

(e)         promptly
notify Purchaser of any fact of which Seller becomes aware that would cause any of the representations, warranties, covenants,
and agreements of Seller contained in this Agreement to become materially false or misleading.

 

(f)          not
sell, assign, or convey any right, title, or interest whatsoever in or to the Property (excluding Tenant Leases), or voluntarily
create any lien, encumbrance, or charge thereon without discharging the same prior to Closing.

 

(g)         promptly
advise Purchaser in writing of any notices concerning the Property that Seller receives from any appraisal districts, taxing authorities
or any governmental agency having jurisdiction over the Property.

 

    	14

    	 

    

 

ARTICLE X

 

INSPECTION
AND AUDIT 

 

Section
10.1       Seller agrees that until the end of the Inspection Period, or the earlier termination of this Agreement, Purchaser,
personally or through its authorized agents or representatives, shall be entitled to enter upon the Real Property and the Improvements
to conduct such physical and environmental inspections, independent appraisals, and other tests, examinations and studies of the
Property and the Property records as Purchaser desires; provided, however, (i) any such tests are not
invasive (unless Seller’s written consent thereto has been obtained in advance) and any such activities do not interfere
with rights of tenants under the Tenant Leases or the operations of the Property; (ii) Purchaser gives Seller reasonable prior
written notice of the time and place of such entry, in order to permit a representative of Seller (or Property Manager) to accompany
Purchaser; (iii) Purchaser shall restore any damage to the Property or any adjacent property caused by such actions; (iv) Purchaser
shall indemnify, defend and save Seller and, as the case may be, its partners, trustees, shareholders, directors, members, officers,
employees and agents (including, without limitation, Property Manager) (collectively, “Indemnified Parties”)
harmless of and from any and all claims and/or liabilities which Seller and its Indemnified Parties may suffer or be subject by
reason or in any manner relating to such entry and such activities by Purchaser or its agents, including, without limitation, any
claims by tenants and/or invitees of the Property; provided, however, this indemnity shall not include, and shall
specifically exclude, any loss, liability, damage, injury, and claims arising out of or resulting solely from (a) the gross negligence
or willful misconduct of Seller or any Indemnified Party, or (b) the mere discovery by Purchaser, or its agents, representatives,
contractors, or employees, acting within the scope of investigations permitted under this Agreement, of the presence of any toxic
or hazardous substance in, on, or under the Property (exclusive of oil, gas and other minerals situated thereunder), provided that
such actions have not materially exacerbated such substances or materially increased the likelihood of a release thereof; (v) Purchaser
shall not enter into any tenant’s leased premises or communicate with any tenant unless Seller gives Purchaser consent to
do so (which consent may be withheld at Seller's sole option) and Purchaser is accompanied by Seller or a representative of Seller
(or Property Manager) in each instance; (vi) prior to entry onto the Property by Purchaser or any of Purchaser’s contractors,
Purchaser shall furnish to Seller, or cause to be furnished by any contractor or agent of Purchaser conducting any inspection of
the Property, a certificate of general liability and property damage insurance maintained such person or entity with occurrence
coverage of not less than $1,000,000.00 for injury or death to any one person and $3,000,000.00 for injury or death to more than
one person and $500,000.00 with respect to property damage, by water or otherwise, and naming Seller and Property Manager as additional
insureds; and (vii) not conduct any environmental investigations or testing other than a standard “Phase I” investigation;
provided that should the Phase I investigation recommend further Phase II testing, Purchaser will obtain in advance Seller’s
consent (not to be unreasonably withheld or delayed) to such further testing. All inspection rights under this Section 10.1
shall be subject to the rights of residential tenants under the Tenant Leases.

 

Section
10.2       If, at any time prior to the expiration of the Inspection Period, Purchaser, in its sole and absolute discretion,
determines that it does not desire to close this Agreement, for any reason or no reason, it may give notice of such fact
to Seller. In that event, this Agreement shall immediately terminate without further liability on the part of Purchaser or Seller
(except for such liability that survives such termination in accordance with the express terms hereof), whereupon the Earnest Money
shall be immediately returned to Purchaser by the Escrow Agent. Should this Agreement remain in effect after the expiration of
the Inspection Period, any and all Earnest Money shall thereafter be nonrefundable to Purchaser in all instances (other than as
expressly provided herein to the contrary) but shall be applied toward the Purchase Price at Closing; provided, however, in the
event the transactions contemplated by this Agreement are not closed on or before the Closing Date, and such failure is not due
to a default by Seller under this Agreement or a failure of a condition identified in Section 12.2 below not caused by Seller,
then Seller shall be entitled to terminate this Agreement, whereupon the Escrow Agent shall disburse any and all Earnest Money
to Seller.

 

    	15

    	 

    

 

ARTICLE XI

 

DAMAGE
OR DESTRUCTION PRIOR TO CLOSING; CONDEMNATION

 

Section
11.1       Casualty.

 

(a)         Prior
to the Closing, the risk of loss or damage to the Property by fire, earthquake, hurricane or other casualty shall be borne by Seller.
If damage, loss or destruction of the Property or any part thereof, by fire, earthquake, hurricane or other casualty (each a “Casualty”),
occurs prior to the Closing, Seller shall promptly notify Purchaser of such damage, loss or destruction.

 

(b)         Seller
agrees to maintain in full force and effect until the Closing, the fire and extended coverage insurance policies now in effect
on the Property (or substitute policies in equal or greater amounts).

 

(c)         In
the event the Improvements and/or any of the items constituting the Personal Property should be damaged by any Casualty prior to
Closing, and if the cost of repairing such Casualty damage, as estimated by the insurance adjustor or a contractor retained by
Purchaser, is:

 

(1)         less
than  FOUR hundred thousand and no/100 dollars ($400,000.00), then Seller
shall assign to Purchaser, at Closing, all insurance proceeds recoverable for such Casualty damage or pay all such proceeds to
Purchaser when received (which obligation shall survive Closing), and Purchaser shall receive a credit against the Purchase Price
in the amount of any deductible required by Seller’s insurance policies, but there shall be no other credit against or reduction
in the Purchase Price attributable to such Casualty; provided, however, Seller shall be obligated to
make such emergency repairs as are necessary to prevent further damage to the Property or injury to any person thereon and Seller
may use insurance proceeds for this limited purpose (and shall not be obligated to reimburse such amounts to Purchaser nor to reduce
the Purchase Price by reason thereof); or

 

(2)         equal
to or more than FOUR hundred thousand and no/100 dollars ($400,000.00), then
Purchaser may elect to terminate this Agreement by giving written notice of termination to Seller within five (5) Business Days
after Seller’s notice to Purchaser of the occurrence of the Casualty (whereupon the Earnest Money shall be immediately returned
to Purchaser by the Escrow Agent); and if Purchaser does not timely elect to terminate this Agreement, then Purchaser shall be
deemed to have waived such termination right and shall be required to proceed to Closing hereunder, and Seller shall assign to
Purchaser, at Closing, all insurance proceeds recoverable for such damage or pay all such proceeds to Purchaser when received (which
obligation shall survive Closing), and Purchaser shall receive a credit against the Purchase Price in the amount of any deductible
required by Seller’s insurance policies, but there shall be no other credit against or reduction in the Purchase Price attributable
to such Casualty; provided, however, Seller shall, to the extent of available insurance proceeds, be
obligated to make such emergency repairs as are necessary to prevent further damage to the Property or injury to any person thereon,
and Seller may use insurance proceeds for this limited purpose and shall not be obligated to reimburse such amounts to Purchaser
nor to reduce the Purchase Price by reason thereof.

 

    	16

    	 

    

 

Section
11.2       Condemnation. In the event of a taking or threatened taking by condemnation or similar proceedings or
actions (each a “Taking”) of all of the Property, or any portion of the Property, Seller shall promptly notify
Purchaser in writing, and Purchaser shall, in the event that the Taking shall have a materially adverse effect on access to, or
parking at, the Property or otherwise affects more than five percent (5%) of the square footage of the Improvements, have the option
to terminate this Agreement upon written notice to Seller given within five (5) Business Days following receipt of such notice
from Seller, whereupon the Earnest Money shall be immediately returned to Purchaser by the Escrow Agent. If Purchaser does not
exercise its option under the immediately preceding sentence of this Section 11.2 to terminate this Agreement, then the
Agreement shall remain in full force and effect and Purchaser shall be deemed to have waived such termination right and shall be
required to proceed to Closing hereunder, and Seller shall assign or pay to Purchaser at Closing Seller’s entire interest
in and to any and all awards or proceeds from any such Taking proceedings or actions in lieu thereof and there shall be no abatement
of the Purchase Price, and Seller shall be relieved of its obligation to convey title to the portion of the Property so taken.
Seller agrees to consult Purchaser in the contesting of any Taking proceeding concerning the Property during the pendency of this
Agreement.

 

ARTICLE XII

 

CONDITIONS
PRECEDENT TO CLOSING

 

Section
12.1      Purchaser shall not be obligated to close under this Agreement unless each of the following conditions shall
be satisfied or waived prior to the Closing Date:

 

(a)         Any
objections to the title or survey which Seller is obligated to cure pursuant to Section 5.3, have been cured or insured
over as of the Closing Date;

 

(b)         the
representations and warranties of Seller contained in Section 7.1 are true and correct in all material respects as of the
Closing Date, except such changes and modifications thereof as are expressly waived in writing by Purchaser;

 

(c)         Seller
has complied in all material respects with the covenants applicable to Seller contained herein and delivered all of the items required
to be delivered by Seller pursuant to Section 13.2 below; and

 

(d)         subject
only to reasonable Title Company requirements that must be satisfied by Purchaser, the Title Company is otherwise unconditionally
and irrevocably committed to issue the Title Policy as of the Closing Date, subject only to the Permitted Exceptions.

 

Section
12.2       Seller shall not be obligated to close under this Agreement unless each of the following conditions shall be
satisfied or waived prior to the Closing Date:

 

(a)         the
representations and warranties of Purchaser contained in Section 7.2 are true and correct as of the Closing Date; and

 

    	17

    	 

    

 

(b)         Purchaser
has complied with the covenants applicable to Purchaser contained herein and delivered all of the items required to be delivered
by Purchaser pursuant to Section 13.3 hereof.

 

ARTICLE XIII

 

CLOSING

 

Section
13.1       The Closing hereunder shall take place via an escrow through the Title Company, on or before the Closing Date,
with physical attendance of the parties not being required. In the event the transactions contemplated by this Agreement are not
closed on or before the Closing Date, and such failure is due to a default by Seller under this Agreement or a failure of a condition
identified in Section 12.1 where such failure is not caused by Purchaser, then, at Purchaser’s option, this Agreement
shall terminate and the Escrow Agent shall disburse any and all Earnest Money to Purchaser.

 

Section
13.2       At the Closing, Seller shall deliver or cause to be delivered into escrow with the Title Company for the benefit
of Purchaser, at Seller’s sole cost and expense, each of the following items:

 

(a)         A
special warranty deed, in the form of Exhibit E attached hereto (the "Deed"), duly executed and acknowledged
by Seller, subject only to the Permitted Exceptions, and, if applicable pursuant to Section 5.1 above, a quitclaim deed
conveying the Real Property as described by the Survey Legal;

 

(b)         A
bill of sale, in the form of Exhibit F attached hereto, duly executed by Seller;

 

(c)         An
assignment of the Tenant Leases, in the form of Exhibit G attached hereto, duly executed and acknowledged by Seller;

 

(d)         An
updated Rent Roll dated not earlier than two (2) days prior to Closing certified by Seller to be true and correct in all material
respects;

 

(e)         Purchaser's
notice letter to the tenants, in the form of Exhibit H attached hereto;

 

(f)          An
assignment of the Miscellaneous Agreements, in the form of Exhibit I attached hereto, duly executed and acknowledged by
Seller;

 

(g)         Such
evidence or documents as may be reasonably required by the Title Company evidencing the status and capacity of Seller and the authority
of the person or persons who are executing the various documents on behalf of Seller in connection with the sale of the Property;

 

    	18

    	 

    

 

(h)         All
keys to all locks on the Property; all tenant files for current tenants under the Tenant Leases, files pertaining to the operation
of Property or the rental business, books, records, advertising materials, and correspondence pertaining to the Property; and all
documents in the possession of Seller pertaining to current tenants of the Property, including, but not by way of limitation, any
applications, correspondence and credit reports relating to each such current tenant (including files and data in electronic media);
provided, however, that Seller may remove all data and programs, including operating systems, from any computers left at the Improvements,
which data shall remain the property of Seller; provided that Seller shall provide password access to such computers to Seller.
All such materials may be delivered at the Property and do not need to be delivered into escrow with the Title Company;

 

(i)          A
FIRPTA Affidavit in a form of Exhibit J attached hereto, duly executed by Seller;

 

(j)          A
termination of the existing management agreement with Property Manager for the Property;

 

(k)         A
closing statement, prepared by the Title Company, in form and content satisfactory to Purchaser and Seller (the “Closing
Statement”) duly executed by Seller;

 

(l)          An
IRS 1099-S form and applicable Tennessee tax reporting forms, duly executed by Seller; and

 

(m)        Any
other documents or agreements required by the Title Company to issue the Title Policy, including, without limitation, an owner’s
affidavit in such form and content as approved by Seller in its reasonable discretion.

 

Section
13.3       At the Closing, Purchaser shall deliver into escrow with the Title Company, for the benefit of Seller, the following
items:

 

(a)         The
Purchase Price, as set forth in Section 3.1;

 

(b)         An
assignment and assumption of Tenant Leases, in the form of Exhibit G attached hereto, duly executed and acknowledged by
Purchaser;

 

(c)         A
copy of the notice letter to the tenants, in the form of Exhibit H attached hereto, duly executed by Purchaser;

 

(d)         An
assignment of the Miscellaneous Agreements, in the form of Exhibit I attached hereto, duly executed and acknowledged by
Purchaser;

 

(e)         Such
evidence or documents as may reasonably be required by Seller or the Title Company evidencing the status and capacity of Purchaser
and the authority of the person or persons who are executing the various documents on behalf of Purchaser in connection with the
sale of the Property;

 

(f)          The
Closing Statement duly executed by Purchaser and distributed to the Title Company, Purchaser, Seller and their respective counsel;
and

 

    	19

    	 

    

 

(g)         Any
other documents or agreements required by the Title Company to issue the Title Policy.

 

Section
13.4       At Closing, the following items shall be adjusted or prorated between Seller and Purchaser:

 

(a)         Rents
collected for the Property or portions thereof shall be prorated as of the Closing Date (with the Closing Date belonging to Purchaser).
No proration shall be made in relation to delinquent rents existing, if any, as of the Closing Date. In adjusting for uncollected
rents, no adjustment shall be made in Seller’s favor for rents which have accrued and are unpaid as of Closing. All rents
received by Purchaser within ninety (90) days after the Closing Date shall be applied first to the then current month’s rent,
next to any delinquencies owed to Purchaser for months following Closing, next to the month in which Closing occurred, and then
to any delinquencies that existed as of the Closing Date. Purchaser shall not be obligated to
take any action to collect Seller’s delinquent rents or to incur any out of pocket third party expense in connection with
such actions and Purchaser shall not be obligated to take any action to terminate a tenancy. Seller reserves the right to bring
suit against tenants of the Property to collect for accrued but unpaid rents owed Seller as of the Closing Date, but Seller may
not, subsequent to Closing, bring suit for possession of the premises occupied by such tenants. Any delinquent rents owed to Seller
and collected by Purchaser pursuant to this Section 13.4(a) shall, after deduction of any collection expenses actually incurred
by Purchaser in connection therewith, be forthwith paid by Purchaser to Seller. This provision shall survive Closing but shall
not be deemed an obligation, express or implied, by or on behalf of Purchaser to take any action to collect such delinquent rents.

 

(b)         Seller
shall credit against the Purchase Price the amount of any refundable, unapplied security deposits held by Seller pursuant to provisions
of any Tenant Leases, together with the aggregate amount of interest owing on such security deposits where interest is owing pursuant
to the terms of the applicable Tenant Lease or Tennessee law.

 

(c)         Taxes,
ad valorem or otherwise, for the Property for the 2013 (or 2014 if the Closing occurs in 2014) tax year (the “Closing
Tax Year”) shall be prorated to date of Closing (with the Closing Date belonging to the Purchaser) based on a calendar
year, and Seller shall credit against the Purchase Price the amount of Seller’s pro rata portion of such taxes. Seller’s
pro rata portion of such Closing Tax Year taxes shall be based upon taxes actually assessed for the Closing Tax Year; provided,
however, if for any reason, taxes for the Closing Tax Year have not been assessed on the Property such proration shall be estimated
based upon the most recently published tax rate and valuation for the Property for the immediately preceding tax year (and Seller
agrees to provide notice of such valuation to Purchaser upon receipt of same from the applicable tax authorities), and adjusted
(and payment made by one party to the other party hereto as required) within thirty (30) days following the date when exact amounts
for the Closing Tax Year are available and such adjustment provision shall expressly survive the Closing hereof.

 

    	20

    	 

    

 

(d)         Purchaser
acknowledges that Seller's insurance coverage on the Property shall be terminated as of the Closing and there shall be no proration
of the insurance premiums.

 

(e)         All
other current income and ordinary operating expenses for or pertaining to the Property, public utility charges, maintenance, service
charges, and all other normal operating charges of the Property shall be prorated at the Closing effective as of the Closing Date
(with the Closing Date belonging to Purchaser). The parties acknowledge and agree that any referral fees due to apartment locators
for any Tenant Leases executed after the Effective Date shall be paid by the party that owns the Property when such referral fee
obligation is incurred. Seller shall request from the applicable utility company(ies) that all utility meters be read on the day
before the Closing Date and Seller shall credit against the Purchase Price (or furnish evidence of prior payment) an amount equal
to all unpaid utility charges incurred or accrued to the reading of such utility meters. At its election, Seller shall be entitled
to notify any service provider of its election to terminate any utility service accounts and to receive the return of any utility
deposits held by any utility provider, in which event Purchaser shall be responsible for establishing its own replacement arrangements
for such services.

 

In the event any adjustments
pursuant to this Section 13.4 are, subsequent to Closing, found to be erroneous, then either party hereto who is entitled
to additional monies shall invoice the other party for such additional amounts as may be owing, and such amount shall be paid within
ten (10) days from receipt of the invoice. Amounts due under this Section 13.4 shall not be subject to the cap on liability
contained in Section 17.1. This covenant shall survive the Closing of the sale contemplated hereby for a period of one (1)
year with respect to tax prorations and ninety (90) days with respect to all other prorations, and shall then terminate.

 

Section
13.5       Closing Costs.

 

(a)         Seller
shall pay (i) the costs of its counsel, (ii) one-half (1/2) of the escrow fee charged by the Title Company; and (iii) recording
fees for releases of items which Seller is required to release or remove pursuant to this Agreement.

 

(b)         Purchaser
shall pay (i) the costs of its counsel, architect, engineers and other professionals and consultants, (ii) the cost of the Survey,
(iii) all Title Company charges for the Title Policy, (iv) one-half (1/2) of the escrow fee charged by the Title Company, and (v)
all transfer taxes imposed on the recording of the Deed and all other recording fees owing on the documents to be recorded to complete
the transactions identified herein, other than recording fees for releases of items which Seller is required to release or remove
pursuant to this Agreement.

 

    	21

    	 

    

 

ARTICLE XIV

 

ASSIGNMENT

 

Section
14.1      Purchaser may not assign Purchaser's rights and obligations under this Agreement (which shall include its rights
in and to the Earnest Money) to a third party (“Assignee”) without Seller’s prior written consent. Notwithstanding
the foregoing to the contrary, Purchaser shall have the one-time right to transfer all of its rights under this Agreement to an
Assignee without Seller’s prior consent (but with notice to Seller of such assignment) so long as Purchaser or an affiliate
of Purchaser controls, or is under control with, such Assignee entity. Any permitted assignment shall be on the further conditions
that (a) the Assignee expressly assumes the obligations of Purchaser hereunder in a written agreement, which agreement will also
set forth the Assignee's taxpayer identification number, and (b) Assignee conforms with the requirements set forth in Section
7.2. Purchaser shall promptly provide Seller with a copy of any such written assignment. Any attempt to assign the Agreement
other than in accordance with this Section 14.1 shall be null and void and considered a default hereunder. Notwithstanding
any such permitted assignment, Purchaser shall remain liable for the performance of its obligations hereunder. Subject to the foregoing
provisions of this Section 14.1, this Agreement shall inure to the benefit of and be binding on the parties hereto and their
respective heirs, legal representatives, successors, and assigns. This Agreement is for the sole benefit of Seller and Purchaser
(including a permitted Assignee), and no third party (including, without limitation, subsequent owners of the Property) is intended
to be a beneficiary of or have the right to enforce this Agreement.

 

ARTICLE XV

 

REAL
ESTATE COMMISSION

 

Section
15.1       Seller and Purchaser represent and warrant each to the other that they have not dealt with any real estate broker,
sales person or finder in connection with this transaction other than CBRE – Steve Massey (as “Seller's Broker”).
Seller does hereby represent and warrant that it, its members, officers, employees and agents have not contracted for any real
estate commissions or similar fees and Seller has not acted in a manner so as to give rise to a claim for such real estate commissions
or similar fee, except as provided in this Section 15.1. Seller shall be responsible for the payment of real estate commissions
due and payable to Seller's Broker, as provided by separate written agreement between Seller and Seller’s Broker. Seller
does hereby agree to indemnify and defend Purchaser against and hold Purchaser harmless from any and all such real estate commissions,
claims to such commissions or similar fees, including costs and attorneys’ fees incurred in any lawsuit regarding such commissions
or fees, to the extent such claims or liabilities are based upon the actions of Seller. In connection therewith, Purchaser does
hereby represent and warrant that it, its officers, employees, members and agents have not contracted for any real estate commissions
or similar fees and Purchaser has not acted in a manner so as to give rise to a claim for such real estate commissions or similar
fee. Purchaser shall be solely responsible for the payment of any and all real estate commissions, claims to such commissions or
similar fees arising, directly or indirectly, out of this transaction and based upon the actions of Purchaser. Purchaser does hereby
agree to indemnify and defend Seller and hold Seller harmless from and against any other real estate commissions, claims to such
commissions or similar fees, including costs and attorneys’ fees incurred in any lawsuit regarding such commissions and fees,
to the extent such claims or liabilities are based upon actions of Purchaser. The indemnity provisions of this Section 15.1
shall survive the Closing or termination of this Agreement.

 

    	22

    	 

    

 

ARTICLE XVI

 

REMEDIES
OF DEFAULT

 

Section
16.1       In the event of Seller's default at any time during the term hereof, and Seller’s failure to cure such
default within three (3) days thereafter, Purchaser may elect, at its option, as its sole and exclusive remedy, (a) to terminate
this Agreement, in which case the Earnest Money shall be returned to Purchaser by the Escrow Agent promptly after receipt of Purchaser’s
demand therefor, and Purchaser and Seller shall be released from any further liability hereunder except for any liability that
survives such termination by the express terms hereof, or (b) enforce specific performance hereunder against Seller. If Purchaser
fails to file an action for specific performance within 90 days after the Closing Date, then Purchaser shall be deemed to have
elected to terminate the Contract in accordance with subsection (a) above. Purchaser specifically waives the right to file any
lis pendens or any lien against the Property unless and until it has irrevocably elected to seek specific performance of
this Agreement and has filed and is diligently pursuing an action seeking such remedy; provided that in the event the remedy of
specific performance is not available because of Seller’s conveyance of the Property to a bona fide purchaser, Purchaser
shall as entitled to recover its actual damages incurred, not to exceed $50,000.

 

Section
16.2       In the event that Seller is unable to consummate the sale contemplated hereby due to a default by Purchaser,
then, as Seller's sole and exclusive remedy and relief, the Earnest Money shall be paid to Seller by the Escrow Agent as liquidated
damages for Purchaser’s default. Such amount is agreed upon by and between Seller and Purchaser as liquidated damages and
not as a penalty, due to the difficulty and inconvenience of ascertaining and measuring actual damages, and the uncertainty thereof;
and no other damages, rights or remedies shall in any case be collectible, enforceable or available to Seller other than as specified
in this Article XVI, but Seller shall accept said cash payment as Seller's total damages and relief.

 

Section
16.3       Seller and Purchaser specifically acknowledge and agree that any limitation on remedies set forth in this Article
XVI does not apply to the express hold harmless and indemnification agreements set forth in this Agreement or to the amounts
recoverable pursuant to Section 18.5 below.

 

Section
16.4       In no event shall any party to this Agreement be entitled to bring a claim for any consequential, punitive,
special or indirect damages under this Agreement.

 

    	23

    	 

    

 

ARTICLE XVII

 

LIABILITY
CONCERNING REPRESENTATIONS AND WARRANTIES

 

Section
17.1       Notwithstanding any provision to the contrary set forth in this Agreement, the representations of Seller expressly
set forth in Section 7.1 of this Agreement shall survive Closing under this Agreement for a period of six (6) months; provided,
however, that such representations are, and are intended to be, given as of the date(s) set forth in Section 7.1
(subject to Seller’s obligation to correct or update such representations as set forth in Section 7.1) and
further provided that Seller shall have no liability to Purchaser by reason of a breach or default of any of Seller's representations,
unless (i) the transaction contemplated herein is consummated and (ii) Purchaser shall have given to Seller written notice (“Warranty
Notice”) of such breach or default prior to Closing or within six (6) months following the Closing Date, and shall have
given to Seller an opportunity to cure any such breach or default within a reasonable period of time after Seller’s receipt
of such Warranty Notice. With respect to the Seller representations and any other obligations of Seller under this Agreement, except
as expressly provided in this Agreement, in no event shall the aggregate liability of Seller to Purchaser by reason of a breach
or default of one or more of such Seller’s representations or other obligations of Seller under this Agreement exceed $150,000
(with Seller’s liability for such representations or other obligations limited to actual damages and not to include consequential
damages). Any litigation by Purchaser with respect to any representation must be commenced within ninety (90) days from the date
of the Warranty Notice, and if not commenced within such time period, Purchaser shall be deemed to have waived its claims for such
breach or default.

 

ARTICLE XVIII

 

MISCELLANEOUS

 

Section
18.1      All notices, demands, or other communications of any type (herein collectively referred to as “Notices”)
given by Seller to Purchaser or by Purchaser to Seller, whether required by this Agreement or in any way related to the transaction
contracted for herein, shall be void and of no effect unless given in strict accordance with the provisions of this Section
18.1. All notices concerning termination of, or default under, this Agreement shall be in writing and delivered to the person
to whom the notice is directed, either in person, by facsimile, by nationally recognized overnight courier, or by United States
Mail, as a registered or certified item, return receipt requested. All other notices may also be delivered via email; provided,
however, that the party attempting to establish that such notice was received by the intended recipient shall bear the burden of
proof concerning such receipt. Notices delivered by mail shall be effective three (3) Business Days following the date when deposited
in a post office or other depository under the care or custody of the United States Postal Service, enclosed in an envelope with
proper postage affixed,

 

addressed if to Seller, as follows:

 

	 	c/o Bluerock Real Estate, L.L.C.
	 	712 Fifth Avenue, 9th Floor
	 	New York, NY 10019
	 	Attention: Jordan Ruddy
	 	Telephone No.: (646) 278-4223
	 	Facsimile No.: (646) 278-4220
	 	Email: jruddy@bluerockre.com

 

    	24

    	 

    

 

	With a copies to:	c/o Bluerock Real Estate, L.L.C.
	 	712 Fifth Avenue, 9th Floor
	 	New York, NY 10019
	 	Attention: Michael Konig
	 	Telephone No.: (646) 278-4230
	 	Facsimile No.: (646) 278-4220
	 	Email: mkonig@bluerockre.com
	 	 
	 	Hawthorne Residential Partners
	 	806 Green Valley Road, Suite 311 
	 	Greensboro, NC 27408
	 	Attention: Philip M. Payonk, Chief Investment Officer
	 	Telephone No.: (336) 553-1700
	 	Email: ppayonk@hrpliving.com
	 	 
	 	Hirschler Fleischer PC
	 	2100 East Cary Street
	 	Richmond, VA 23223
	 	Attention: S. Edward Flanagan
	 	Telephone No.: (804) 771-9592
	 	Facsimile No.: (804) 644-0957
	 	Email: eflanagan@hf-law.com
	 	 
	and addressed, if to Purchaser, as follows:
	 	 
	 	Prominent Realty Group of Georgia, Inc.
	 	5425 Peachtree Parkway
	 	Norcross, GA 30092
	 	Attention: Douglas Foppe
	 	Telephone: (678) 906-4040
	 	Facsimile: (678) 906-4042
	 	Email: PRG2000@mindspring.com
	 	 
	With a copy to:	Foltz Martin
	 	3525 Piedmont Rd. NE
	 	Building 5, Suite 750
	 	Atlanta, GA 30305
	 	Attention: Joseph B. Foltz, Esq.
	 	Telephone: (404) 231-9397
	 	Facsimile: (404) 237-1659
	 	Email: jfoltz@foltzmartin.com

 

Notice given in person,
facsimile or email shall be effective upon confirmed receipt or refusal by the addressee. Notice given by overnight courier shall
be effective one (1) Business Day after delivery. Either party hereto may change the address for notice specified above by giving
the other party ten (10) days advance written notice of such change of address. Notices to and from counsel to the parties with
copies to the appropriate party will constitute proper notice hereunder.

 

    	25

    	 

    

 

Section
18.2      This Agreement shall be construed and interpreted in accordance with the laws of the State of Tennessee and
the obligations of the parties hereto are and shall be performable in the city wherein the Property is located. Where required
for proper interpretation, words in the singular shall include the plural; the masculine gender shall include the neuter and the
feminine, and vice versa. The terms "heirs, executors, administrators and assigns" shall include "successors, legal
representatives and assigns."

 

Section
18.3      This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective legal
representatives, successors and assigns. This Agreement may not be modified or amended, except by an agreement in writing signed
by Seller and Purchaser. The parties may waive any of the conditions contained herein or any of the obligations of the other party
hereunder, but any such waiver shall be effective only if in writing and signed by the party waiving such conditions or obligations.

 

Section
18.4       Time is of the essence of this Agreement.

 

Section
18.5       In the event it becomes necessary for either party hereto to file a suit to enforce this Agreement or any provisions
contained herein or to participate in any bankruptcy proceeding instituted by or against the other party hereto, the party prevailing
in such action (or the non-bankruptcy filing party, as applicable) shall be entitled to recover, in addition to all other remedies
or damages, reasonable attorneys’ fees and court costs, including appellate costs, incurred in such suit (or proceeding).

 

Section
18.6      The descriptive headings of the several Articles, Sections and Paragraphs contained in this Agreement are inserted
for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

 

Section
18.7      This Agreement, including the Exhibits and Addenda hereto and the items to be furnished in accordance with Article
VI, constitutes the entire agreement among the parties pertaining to the subject matter hereof and supersedes all prior and
contemporaneous agreements and understandings of the parties in connection therewith. No representation, warranty, covenant, agreement
or condition not expressed in this Agreement shall be binding upon the parties hereto or shall affect or be effective to interpret,
change or restrict the provisions of this Agreement.

 

Section
18.8       Multiple originals of this Agreement have been executed by the parties hereto. Each such executed original shall
have the full force and effect of an original executed instrument. Executions sent via facsimile or email shall have the full force
and effect of an original executed instrument pending receipt of original executed instruments. Signature pages from the multiple
originals may be assembled to form one document. This Agreement may be executed in multiple counterparts, all of which when taken
together shall constitute one and the same agreement.

 

    	26

    	 

    

 

Section
18.9       Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act
or event after which the designated period of time begins to run is not to be included and the last day of the period so computed
is to be included, unless such last day is a Saturday, Sunday or legal holiday under the laws of the State of Tennessee, in which
event the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday (each a “Business
Day”). The final day of any such period shall be deemed to end at 5:00 p.m. (US Eastern Time).

 

Section
18.10     If any term or provision of this Agreement which would not deprive the parties of the benefit of the bargain
shall be held to be invalid, illegal, unenforceable or inoperative as a matter of law, the remaining terms and provisions of this
Agreement shall not be affected thereby, but each such remaining term and provision shall be valid and shall remain in full force
and effect.

 

Section
18.11    Each party hereto acknowledges that each of them has had the benefit of legal counsel of its own choice and
has been afforded an opportunity to review this Agreement with its legal counsel and that this Agreement has been jointly drafted
and shall be construed as having been jointly drafted by each party hereto. Accordingly, the normal rule of construction to the
effect that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement
or any amendments or exhibits hereto.

 

Section
18.12     Purchaser acknowledges that this Agreement is entered into by Seller as a limited liability company, and Purchaser
agrees that no individual member, officer, director, manager, employee or other representative of Seller shall have any personal
liability under this Agreement or under any document executed in connection with the transactions contemplated by this Agreement.

 

Section
18.13    Purchaser acknowledges that the Property may be subject to the federal Americans With Disabilities Act (the
"ADA") and the federal Fair Housing Act (the "FHA"). The ADA requires, among other
matters, that tenants and/or owners of "public accommodations" remove barriers in order to make the Property accessible
to disabled persons and provide auxiliary aids and services for hearing, vision or speech impaired persons. Seller makes no warranty,
representation or guarantee of any type or kind with respect to the Property's compliance with the ADA or the FHA (or any similar
state or local law), and Seller expressly disclaims any such representations; provided that Seller has, to Seller’s knowledge,
received no notice of non-compliance with the ADA or FHA from applicable authorities.

 

Section
18.14    THIS AGREEMENT IS PERFORMABLE IN THE CITY OF CHATTANOOGA, TENNESSEE,
AND SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE, THE SUBSTANTIVE FEDERAL LAWS OF THE UNITED STATES AND THE
LAWS OF THE STATE OF TENNESSEE. PURCHASER AND SELLER HEREBY IRREVOCABLY SUBMIT TO
THE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE CITY OF CHATTANOOGA, TENNESSEE
IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND HEREBY IRREVOCABLY AGREE THAT ALL CLAIMS IN
RESPECT OF SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN A STATE OR FEDERAL COURT SITTING IN THE
CITY OF CHATTANOOGA, TENNESSEE.

 

    	27

    	 

    

 

Section
18.15    Upon Seller's request to Purchaser, Purchaser agrees to reasonably cooperate with Seller so that Seller's transfer
of the Property to Purchaser shall, at Seller's election, be accomplished in a manner enabling the transfer to qualify as part
of a like-kind exchange of property by Seller within the meaning of Section 1031 of the Internal Revenue Code (a “Like-Kind
Exchange”). If Seller so elects, Purchaser shall reasonably cooperate with Seller to effect such Like-Kind Exchange,
which cooperation shall include, without limitation, taking such actions as Seller reasonably requests to enable such transfer
to qualify as part of a Like-Kind Exchange. Upon Purchaser’s request to Seller, Seller agrees to reasonably cooperate with
Purchaser so that Seller’s transfer of the Property to Purchaser shall, at Purchaser's election, be accomplished in a manner
enabling the transfer to qualify as part of a Like-Kind Exchange of property by Purchaser. If Purchaser so elects, Seller shall
reasonably cooperate with Purchaser to effect such Like-Kind Exchange, which cooperation shall include, without limitation, taking
such actions as Purchaser reasonably requests to enable such transfer to qualify as part of a Like-Kind Exchange. Neither party's
obligations hereunder shall be increased as a result of the agreements provided in this subsection, and each party shall bear all
costs and expenses associated with any Like-Kind Exchange initiated for such party's benefit.

 

Section
18.16     Prior to the Closing, the parties shall use commercially reasonable efforts to ensure that no publicity or
other disclosure of information not already in the public domain occurs regarding this transaction or the “Information”
(as defined below); provided, however, such disclosures may be made (a) to the parties’ respective
members, consultants, contractors, engineers, partners, investors, employees, agents, representatives, brokers, advisors and attorneys
(individually, a “Representative” and, collectively, “Representatives”), provided
each Representative agrees to be bound by the confidentiality provisions of this Section 18.16 or (b) as required by applicable
law. Without Seller’s prior written consent, Purchaser shall not, prior to Closing, market or offer the Property for sale,
nor entertain or solicit offers for the sale of the Property. As used in this Agreement, the term “Information”
shall mean any of the following: (i) all information and documents in any way relating to the Property, the operation thereof or
the sale thereof, including, without limitation, the terms of sale, the contractual terms set forth in this Agreement, all leases
and contracts furnished to, or otherwise made available for review by, Purchaser or Purchaser’s Representatives, or by Seller
or Seller’s Representatives, and (ii) all analyses, compilations, data, studies, reports or other information or documents
prepared or obtained by Purchaser or Purchaser's Representatives containing or based on, in whole or in part, the information or
documents described in the preceding clause (i), or otherwise reflecting their review or investigation of the Property. Notwithstanding
any provision of law to the contrary, if either party asserts a claim of breach alleging a violation of this Section 18.16,
the party asserting such claim shall carry the burden of proof.

 

Section
18.17     Purchaser shall not cause or allow this Agreement or any contract or other document related hereto, nor any
memorandum or other evidence hereof, to be recorded or become a public record without Seller's prior written consent, which consent
may be withheld at Seller's sole discretion. If Purchaser records this Agreement or any other memorandum or evidence thereof, Purchaser
shall be in default of its obligations under this Agreement. Purchaser hereby appoints Seller as Purchaser's attorney-in-fact to
prepare and record any documents necessary to effect the nullification and release of the Agreement or other memorandum or evidence
thereof from the public records. This appointment shall be coupled with an interest and irrevocable.

 

    	28

    	 

    

 

Section
18.18    Except for (a) all of the provisions of this Article XVIII; (b) any other provisions in this Agreement that
by their express terms survive the termination or Closing; (c) any payment obligation of Purchaser under this Agreement; and (d)
any payment obligation of Seller under this Agreement arising prior to Closing or earlier termination thereof (the foregoing (a),
(b), (c) and (d) referred to herein as the "Survival Provisions"), none of the terms and provisions of this Agreement
shall survive the termination of this Agreement, and if the Agreement is not so terminated, all of the terms and provisions of
this Agreement (other than the Survival Provisions, which shall survive the Closing) shall be merged into the Closing documents
and shall not survive Closing.

 

Section
18.19     Seller and Purchaser agree to cooperate in a post-closing audit and final reconciliation of all items of income
and expense at the Property as of the Closing Date on or before 90 days after Closing. Further, from and after the Closing, for
a period of one (1) year, Purchaser shall allow Seller and its agents and representatives, at Seller’s expense, to have reasonable
access to (upon reasonable prior notice and during normal business hours), and to make copies of the books and records with respect
to the Property for the period prior to Closing, to the extent reasonably necessary to enable Seller to among other things make
any requisite tax and securities related filings with respect to its affiliated real estate investment trust, to file or defend
tax returns, to verify accounts receivable collections due Seller, and to enable Seller to complete, in accordance with Seller’s
policies and procedures, any and all post-Closing accounting, reconciliation and closing procedures.

 

ARTICLE XIX

 

LEAD–BASED
PAINT DISCLOSURE

 

Section
19.1       Disclosure. Seller and Purchaser hereby acknowledge delivery of the Lead Based Paint Disclosure
attached as Exhibit M hereto.

 

[SIGNATURE(S) ON FOLLOWING PAGE(S)]

 

    	29

    	 

    

 

EXECUTED on this 12th day of December, 2013,
by Purchaser.

 

	 	Purchaser:
	 	 
	 	PROMINENT REALTY GROUP OF GEORGIA, INc,

a Georgia corporation
	 	 	 
	 	By:	/s/ Douglas P. Foppe
	 	Name:	Douglas P. Foppe
	 	Its:	President

 

    	30

    	 

    

 

EXECUTED on this ____
day of December, 2013, by Seller.

 

	Seller:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	BR CREEKSIDE LLC,
	a Delaware limited liability company
	 	 	 	 	 	 	 
	By:	BR Hawthorne Creekside JV, LLC, a Delaware limited liability company, its sole Member
	 	 	 	 	 	 	 
	 	By:	BR Creekside Managing Member, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	By:	BEMT Creekside, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	 	By:	Bluerock Residential Holdings, L.P., a Delaware limited partnership, its sole member
	 	 	 	 	 	 	 
	 	 	 	 	By:	Bluerock Residential Growth REIT, Inc., a Maryland corporation, its general partner
	 	 	 	 	 	 	 
	 	 	 	 	 	By:	/s/ Ramin Kamfar
	 	 	 	 	 	 	R. Ramin Kamfar, Chief Executive Officer and President

 

    	31

    	 

    

 

Receipt of this fully
executed Agreement is acknowledged by the Escrow Agent this 12th day of December, 2013.

 

	MADISON TITLE AGENCY, LLC
	 	 
	By:	 /s/ Daniela Graca
	Name:	 Daniela Graca
	Title:	 Transaction Manager

 

    	32

    	 

    

 

EXHIBIT A

 

PERSONAL PROPERTY

 

[To be attached ]

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit A	1	 

    	 

    

 

EXHIBIT B

 

PROPERTY DESCRIPTION

 

All that certain lot, piece or parcel of land, with the buildings
and improvements thereon erected, situate, lying and being in the City of Chattanooga, County of Hamilton, State of Tennessee.

 

Being a tract of land located in the city of Chattanooga, Hamilton
County, Tennessee, and known as Tract 1, The Reserve at Creekside, recorded in Plat Book 77 Page 45, 46 and 47, in the Register's
Office of Hamilton County, Tennessee, and being more particularly described as follows: Beginning at the intersection of the southern
right-of-way of East Brainerd Road, having a width of 60 feet and the centerline of a private road known as Reserve Way; thence,
leaving said right-of-way and continuing along the centerline of Reserve Way and being the dividing line of said Tract 1 and Tract
5, the Reserve at Creekside, the following bearing and distances: South 33 degrees 31 minutes 48 seconds West 36.02 feet; thence,
in a curve to the right having an arc length of 73.90 feet and a radius of 155.50 feet and subtended by a chord of South 47 degrees
08 minutes 40 seconds West 73.20 feet; thence South 60 degrees 45 minutes 30 seconds West 81.24 feet; thence, in a curve to the
left having an arc length of 66.19 feet and a radius of 119.50 feet and subtended by a chord of South 44 degrees 53 minutes 27
seconds West 65.35 feet; thence South 29 degrees 01 minutes 24 seconds West 57.30 feet; thence, in a curve to the right having
an arc length of 29.72 feet and a radius of 105.00 feet and subtended by a chord of South 37 degrees 07 minutes 54 seconds West
29.62 feet; thence South 45 degrees 14 minutes 24 seconds West 89.44 feet; thence, in a curve to the right having an arc length
of 42.07 feet and a radius of 105.00 feet and subtended by a chord of South 56 degrees 43 minutes 09 seconds West 41.79 feet; thence
South 68 degrees 11 minutes 54 seconds West 43.45 feet; thence, in a curve to the left having an arc length of 250.33 feet and
a radius of 320.00 feet and subtended by a chord of South 45 degrees 47 minutes 17 seconds West 243.99 feet; thence South 23 degrees
22 minutes 40 seconds West 127.61 feet; thence, leaving said centerline, South 66 degrees 37 minutes 20 seconds East 67.16 feet;
thence South 23 degrees 04 minutes 59 seconds West 89.60 feet; thence South 89 degrees 27 minutes 53 seconds West 64.57 feet; thence
South 22 degrees 38 minutes 11 seconds West 32.34 feet; thence, in a curve to the left having an arc length of 144.74 feet and
a radius of 182.99 feet and subtended by a chord of South 00 degrees 43 minutes 08 seconds West 140.99 feet; thence South 21 degrees
56 minutes 24 seconds East 335.99 feet; thence South 67 degrees 20 minutes 15 seconds West 171.51 feet; thence South 20 degrees
51 minutes 53 seconds East 327.71 feet to the southernmost paint of said Tract 5; thence South 23 degrees 29 minutes 05 seconds
West 270.08 feet; thence South 24 degrees 06 minutes 50 seconds West 614.93 feet; thence North 65 degrees 31 minutes 01 seconds
West 365.76 feet; thence South 23 degrees 32 minutes 19 seconds West 234.34 feet; thence North 66 degrees 12 minutes 40 seconds
West 471.96 feet; thence North 66 degrees 14 minutes 25 seconds West 466.77 feet; thence North 23 degrees 09 minutes 58 seconds
East 875.87 feet; thence South 69 degrees 57 minutes 00 seconds East 725.59 feet; thence North 21 degrees 31 minutes 00 seconds
East 1091.03 feet; thence South 66 degrees 37 minutes 20 seconds East 185.95 feet to a point on the western line of Reserve Way;
thence, with and along said western line of Reserve Way, North 23 degrees 22 minutes 40 seconds East 97.61 feet; thence, in a curve
to the right having an arc length of 273.79 feet and a radius of 350.00 feet and subtended by a chord of North 45 degrees 47 minutes
17 seconds East 266.87 feet; thence North 68 degrees 11 minutes 54 seconds East 43.45 feet; thence, in a curve to the left having
an arc length of 30.05 feet and a radius of 75.00 feet and subtended by a chord of North 56 degrees 43 minutes 09 seconds East
29.85 feet; thence North 45 degrees 14 minutes 24 seconds East 89.44 feet; thence, in a curve to the left having an arc length
of 21.23:feet and a radius of 75.00 feet and subtended by a chord of North 37 degrees 07 minutes 54 seconds East 21.16 feet; thence
North 29 degrees 01 minutes 24 seconds East 57.30 feet; thence, in a curve to the right having an arc length of 82.81 feet and
a radius of 149.50 feet and subtended by a chord of North 44 degrees 53 minutes 27 seconds East 81.75 feet; thence North 60 degrees
45 minutes 30 seconds East 81.24 feet; thence, in a curve to the left having an arc length of 59.64 feet and a radius of 125.50
feet and subtended by a chord of North 47 degrees 08 minutes 39 seconds East 59.08 feet; thence North 33 degrees 31 minutes 48
seconds East 11.34 feet; thence South 56 degrees 34 minutes 42 seconds East 8.02 feet; thence North 33 degrees 22 minutes 59 seconds
East 24.87 feet to the southern right-of-way of East Brainerd Road; thence, with and along said right-of-way, South 55 degrees
55 minutes 10 seconds East 22.05 feet to the point of beginning.

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE 
Exhibit B	1	 

    	 

    

 

Together with that Reciprocal Easement Agreement of record in
Book 6958, Page 60 in the Register's Office, Hamilton County, Tennessee as supplemented to Reciprocal Easement Agreement of Record
in Book 7627 Page 128, said Register's Office, as amended by First Amendment To Reciprocal Easement Agreement of record in Book
8002 Page 508, said Register's Office, and as affected by affidavit of scrivener’s recorded in deed book 9927 Page 722, aforesaid
records.

 

NOTE: Being Parcel No. 159P A 00104 000, of the City of Chattanooga,
County of Hamilton.

 

    	THE
                                         STRATFORD APARTMENTS -AGREEMENT OF PURCHASE AND SALE
LYND RESIDENTIAL PROPERTIESTM
Exhibit
                                         B	2	 

    	 

    

 

EXHIBIT C

 

MISCELLANEOUS AGREEMENTS

 

Allied Waste (Refuse)

Aramark Refreshments

Consumer Source (ApartmentGuide.com)

HandyTrac

Indatus

Landscape Associates (Landscaping)

Property Solutions

Pest Master (Pest)

Services Agreement with Comcast of the South
(Cable)

Earthlink

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit C	1	 

    	 

    

 

EXHIBIT D

 

PENDING LITIGATION

 

NONE

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit D	1	 

    	 

    

 

EXHIBIT E

 

FORM OF DEED 

 

	
        THIS INSTRUMENT

        PREPARED BY:

         

         

         

         

        WHEN RECORDED

        RETURN TO:

         
	
        ADDRESS NEW

        OWNER:
	
        PROPERTY

        ADDRESS:
	SEND TAX BILLS TO: 	
        MAP-

        PARCEL

        NOS.:

 

SPECIAL WARRANTY DEED

 

THIS INDENTURE, made
and entered into this _____ day of ____________, 2014, by and between BR CREEKSIDE LLC, a Delaware limited liability company
(hereinafter "Grantor"), and ___________, a _______________ (hereinafter "Grantee");

 

WITNESSETH:

 

THAT for and in consideration
of Ten Dollars ($10.00), cash in hand paid, and other good and valuable consideration, the receipt of all of which is hereby acknowledged,
Grantor has bargained and sold and does hereby transfer and convey unto Grantee, Grantee’s successors and assigns, a _____%
undivided tenant in common interest in the following described real estate, situated and being in the County of ________, State
of Tennessee, to-wit:

 

All of that certain real estate
described in Exhibit "A" attached hereto and incorporated herein by this reference.

 

This being a portion
of the same real estate conveyed to Grantor by Special Warranty Deed of record under Deed Book ____, Page ______ in the Register's
Office of _____ County, Tennessee.

 

This is improved property
knows as ____________, Chattanooga, Tennessee _________.

 

TO HAVE AND TO HOLD
the aforesaid real estate, together with all appurtenances, estate, title and interest thereunto belonging or in anywise appertaining
unto Grantee, its successors and assigns, in fee simple forever, subject to all matters of record.

 

Grantor does hereby
covenant and bind itself, its successors and representatives, to warrant and forever defend the title to the aforesaid real estate
to the said Grantee, its successors and assigns, against the lawful claims of all persons claiming by, through or under Grantor,
but not further or otherwise, except that no warranty is made as to the amount of acreage in said real estate.

 

As used herein, pronouns
shall be construed according to their gender and number according to the context thereof.

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
Grantor has caused this instrument to be executed by and through its duly authorized representatives on the day and year first
above written.

 

	Grantor:
	 	 	 	 	 	 	 
	BR CREEKSIDE LLC,
	a Delaware limited liability company
	 	 	 	 	 	 	 
	By:	BR Hawthorne Creekside JV, LLC, a Delaware limited liability company, its sole Member
	 	 	 	 	 	 	 
	 	By:	BR Creekside Managing Member, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	By:	BEMT Creekside, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	 	By:	Bluerock Residential Holdings, L.P., a Delaware limited partnership, its sole member
	 	 	 	 	 	 	 
	 	 	 	 	By:	Bluerock Residential Growth REIT, Inc., a Maryland corporation, its general partner
	 	 	 	 	 	 	 
	 	 	 	 	 	By:	 
	 	 	 	 	 	 	R. Ramin Kamfar, Chief Executive Officer and President

 

STATE OF _____________

COUNTY OF __________ _

 

On this_______ day
of _____________ in the year 2014, before me ____________________, a Notary Public in and for said state, personally appeared R.
Ramin Kamfar, as Chief Executive Officer and President, of Bluerock Residential Growth REIT, Inc., a Maryland corporation, the
general partner of Bluerock Residential Holdings, L.P., a Delaware limited partnership, the sole member of BEMT Creekside, LLC,
a Delaware limited liability company, the manager of BR Creekside Managing Member LLC, a Delaware limited liability company, the
manager of BR Hawthorne Creekside JV, LLC, a Delaware limited liability company, the sole member of BR Creekside LLC, a Delaware
limited liability company, known by me to be the person who executed the within instrument, on behalf of said limited liability
companies and acknowledged to me that he or she executed the same for the purposes therein stated.

 

    	2

    	 

    

 

	 	 
	 	Notary Public
	 	 
	 	 
	 	Print Name
	 	 
	 	My Commission Expires: ___________

 

    	3

    	 

    

 

AFFIDAVIT OF CONSIDERATION OR VALUE

 

The actual
consideration or value, whichever is greater, for this transfer is $_______________.

 

	 	 
	 	AFFIANT

 

SUBSCRIBED
AND SWORN TO before me this _____ day of ___________, 2014.

 

	 	 
	 	Notary Public

 

	My Commission Expires:
	 
	 

 

    	4

    	 

    

 

EXHIBIT "A"

TO

SPECIAL WARRANTY DEED

 

Description Of Real Estate

 

LOCATED IN ________ COUNTY, TENNESSEE:

 

 

 

 

This being a portion of the same real estate
conveyed to Grantor by Special Warranty Deed of record in Deed Book ____, Page ______ in the Register's Office of ____ County,
Tennessee.

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit E	1	 

    	 

    

 

EXHIBIT F

 

LIMITED WARRANTY BILL OF SALE

 

THIS BILL OF SALE is
made as of the _____ day of ___________, 201__ (the “Effective Date”), from BR CREEKSIDE LLC, a Delaware
limited liability company (the “Seller”), to _________________________________, a _______________ (the
“Purchaser”).

 

RECITALS:

 

WHEREAS, contemporaneously
with the execution and delivery of this Bill of Sale, Seller has sold and conveyed to Purchaser all of Seller's right, title and
interest and estate in and to the real property described in Exhibit A attached hereto and made a part hereof and all buildings,
structures and improvements located thereon by deed of even date herewith (all of such buildings, structures, improvements and
real property collectively hereinafter referred to as the "Real Property"); and

 

WHEREAS, as a part
of the consideration for the conveyance of the Real Property, Seller has agreed to convey to Purchaser, Seller’s interest
in the items of personal property, if any, that are owned by Seller and located in and on, and used in connection with, the Real
Property;

 

NOW, THEREFORE, in
consideration of the sum of $10.00 and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
Seller does hereby sell, assign, and convey to Purchaser (without any representation or warranty whatsoever, except that Seller
represents and warrants that the property conveyed hereby is free and clear of any liens or encumbrances of any kind or nature)
Seller's right, title and interest, if any, in and to the personal property, if any, that is owned by Seller, located at the Real
Property and used in connection with the management or operation of the Real Property (whether or not any such items constitute
“personal property” or “fixtures” as a matter of state law) including, without limitation, (i) all of Seller’s
right, title and interest in and to fixtures; equipment; compressors; engines; electrical systems, fixtures and equipment; plumbing
fixtures, systems and equipment; heating fixtures, systems and equipment; air conditioning fixtures, systems and equipment; furniture;
refrigerators; dishwashers; disposals; ranges; range hoods; ovens; microwaves; carpets, drapes; maintenance equipment; washing
machines and dryers; tools; landscaping; pool equipment; statuary; television antennae, systems and equipment; intercom equipment
and systems; elevator fixtures, systems and equipment; central music systems and equipment; security and fire alarms, systems and
equipment; and all other machinery; equipment; fixtures; automotive vehicles; carts; supplies; replacement parts; building materials
and property of every kind and character, owned by Seller and used in connection with the operation of the Improvements, excluding,
however, the items listed on Exhibit B attached hereto (collectively, Seller's interest in such property hereinafter called
the “Assigned Properties”). In particular, the Assigned Properties shall not include the right to use (collectively,
the “Seller Trademarks”) any trademarks, logos, trade colors, service marks and trade names of Seller, Bluerock
Real Estate or Property Manager and any advertising, promotional and similar materials which contain the Seller Trademarks, all
of which may be removed by Seller prior to Closing. Promptly after Closing, Seller will “banner” or otherwise temporarily
mask the portion of all signage containing the Seller Trademarks to indicate the new ownership, failing which, upon five days'
notice, Seller may do so at Purchaser’s expense.

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit F	1	 

    	 

    

 

SELLER MAKES NO WARRANTY
OF MERCHANTABILITY, QUALITY OR FITNESS FOR A PARTICULAR PURPOSE IN RESPECT OF THE FOREGOING ASSIGNED PROPERTIES, AND THE SAME IS
SOLD IN "AS IS, WHERE IS" CONDITION, WITH ALL FAULTS, EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES CONTAINED
HEREIN. PURCHASER ACKNOWLEDGES THAT THE FOREGOING ASSIGNED PROPERTIES ARE IN A USED CONDITION AND THAT SELLER IS NOT A MANUFACTURER,
DISTRIBUTOR, DEALER OR MERCHANT IN OR OF SAID ASSIGNED PROPERTIES.

 

TO HAVE AND TO HOLD
the Assigned Properties unto Purchaser, and Seller’s successors and assigns, forever and
Seller warrants title to the foregoing against the claims of all persons whomsoever, claiming by, through or under Seller.

 

This Bill of Sale shall
be binding upon and shall inure to the benefit of Seller, Purchaser and their respective successors and assigns.

 

This Bill of Sale shall
be governed by and construed in accordance with the laws of the State of Tennessee.

 

IN WITNESS WHEREOF,
Seller has caused this Bill of Sale to be signed and sealed in its name by its officers thereunto duly authorized to be effective
as of the Effective Date.

 

[ Signature on following page ]

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit F	2	 

    	 

    

 

	Seller:
	 
	BR CREEKSIDE LLC,
	a Delaware limited liability company
	 	 	 	 	 	 	 
	By:	BR Hawthorne Creekside JV, LLC, a Delaware limited liability company, its sole Member
	 	 	 	 	 	 	 
	 	By:	BR Creekside Managing Member, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	By:	BEMT Creekside, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	 	By:	Bluerock Residential Holdings, L.P., a Delaware limited partnership, its sole member
	 	 	 	 	 	 	 
	 	 	 	 	By: 	Bluerock Residential Growth REIT, Inc., a Maryland corporation, its general partner
	 	 	 	 	 	 	 
	 	 	 	 	 	By:	 
	 	 	 	 	 	 	R. Ramin Kamfar, Chief Executive Officer and President

 

List of Exhibits:

 

	 	A	-	Property Description
	 	B	-	Personalty

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit F	3	 

    	 

    

 

EXHIBIT G

 

ASSIGNMENT AND ASSUMPTION OF LEASES

 

BR CREEKSIDE LLC,
a Delaware limited liability company (“Assignor”), in consideration of the sum of TEN AND NO/100 DOLLARS
($10.00) in hand paid and other good and valuable consideration, the receipt of which is hereby acknowledged, hereby assigns,
transfers, sets over and conveys to ___________________________________, a _________________ (“Assignee”),
all of Assignor's right, title and interest in and to all leases, including any and all security deposits made by tenants pursuant
to said leases, in effect at the real property legally described on Exhibit A attached hereto, which is commonly known as
the “Reserve at Creekside Village Apartments” located in Chattanooga, Tennessee (collectively, the “Existing
Leases”).

 

Assignee hereby expressly
assumes the obligation for the performance of any and all of the obligations of Assignor under the Existing Leases (the “Indemnified
Matters”) in respect of the period on or after the date hereof.

 

Assignor hereby indemnifies
Assignee for the Indemnified Matters prior to the date hereof and Assignee hereby indemnifies Assignor from the Indemnified Matters
from and after the date hereof.

 

This Assignment and
Assumption of Leases shall bind and inure to the benefit of all parties hereto and their respective heirs, successors and assigns.

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASES IS MADE ON AN "AS-IS, WHERE-IS, WITH ALL FAULTS" BASIS, WITHOUT RECOURSE AND WITHOUT ANY REPRESENTATION
OR WARRANTY (EXPRESS OR IMPLIED) WHATSOEVER EXCEPT AS MAY EXPRESSLY BE SET FORTH IN THE AGREEMENT OF PURCHASE AND SALE AND THIS
ASSIGNMENT.

 

IN
WITNESS WHEREOF, Assignor has executed this Assignment and Assumption of Leases to be effective as of the ____ day of
_______________, 201__.

 

[Signatures on following pages ]

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit G	1	 

    	 

    

 

	Assignor:
	 
	BR CREEKSIDE LLC,
	a Delaware limited liability company
	 	 	 	 	 	 	 
	By:	BR Hawthorne Creekside JV, LLC, a Delaware limited liability company, its sole Member
	 	 	 	 	 	 	 
	 	By:	BR Creekside Managing Member, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	By:	BEMT Creekside, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	 	By:	Bluerock Residential Holdings, L.P., a Delaware limited partnership, its sole member
	 	 	 	 	 	 	 
	 	 	 	 	By: 	Bluerock Residential Growth REIT, Inc., a Maryland corporation, its general partner
	 	 	 	 	 	 	 
	 	 	 	 	 	By:	 
	 	 	 	 	 	 	R. Ramin Kamfar, Chief Executive Officer and President

 

	ASSIGNEE:
	 
	 
	 	 
	By:	 
	Name:	 
	Title:	 

 

List of Exhibits:

 

	 	A	-	Property Description

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit G	2	 

    	 

    

 

EXHIBIT H

 

TENANT NOTICE LETTER

 

[Date]

 

Reserve at Creekside Village Apartments

1340 Reserve Way

Chattanooga, Tennessee 37421

 

Dear Resident:

 

Notice is hereby given to the tenants of
the Reserve at Creekside Village Apartments (the “Property”) that BR Creekside LLC, the current owner of the
Property, has sold the Property to ____________________ (“Purchaser”) effective (date of takeover). Purchaser
has assumed all of the obligations of landlord under your lease, including any obligations with respect to your security deposit,
if any, which has been transferred to Purchaser.

 

Sincerely,

 

	BR CREEKSIDE LLC,
	 
	a Delaware limited liability company
	 	 	 	 	 	 	 
	By:	BR Hawthorne Creekside JV, LLC, a Delaware limited liability company, its sole Member
	 	 	 	 	 	 	 
	 	By:	BR Creekside Managing Member, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	By:	BEMT Creekside, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	 	By:	Bluerock Residential Holdings, L.P., a Delaware limited partnership, its sole member
	 	 	 	 	 	 	 
	 	 	 	 	By: 	Bluerock Residential Growth REIT, Inc., a Maryland corporation, its general partner
	 	 	 	 	 	 	 
	 	 	 	 	 	By:	 
	 	 	 	 	 	 	R. Ramin Kamfar, Chief Executive Officer and President

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit H	1	 

    	 

    

 

EXHIBIT I

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

FOR VALUE RECEIVED,
BR CREEKSIDE LLC, a Delaware limited liability company (“Assignor”), hereby conveys, assigns, transfers,
and sets over unto _______________________________________, a ________________ (“Assignee”), all the
right, title and interest of Assignor in and to any and all intangible property owned by Assignor and used in connection with the
real estate legally described on Exhibit A attached hereto and made a part hereof, and the buildings and improvements located
thereon (“Property”), all assignable licenses and permits held by Assignor now in effect with respect to the
Property, all assignable warranties, guaranties and bonds held by Assignor applicable to the Property (and Assignor covenants to
cooperate with Assignee to secure performance by any warrantor for any work under such guaranties or warranties), and all assignable
written contracts and agreements described on Exhibit B attached hereto and made a part hereof (said written contracts and
agreements being referred to herein collectively as the “Service Contracts”).

 

Assignee hereby expressly
assumes the obligation for the performance of any and all of the obligations of Assignor under the Service Contracts (the “Indemnified
Matters”) in respect of the period on or after the date hereof.

 

Assignor hereby indemnifies
Assignee for the Indemnified Matters prior to the date hereof and Assignee hereby indemnifies Assignor for the Indemnified Matters
from and after the date hereof.

 

This Assignment and
Assumption Agreement shall be binding upon and shall inure to the benefit of Assignor, Assignee and their respective successors
and assigns.

 

THIS ASSIGNMENT AND
ASSUMPTION AGREEMENT IS MADE ON AN "AS-IS, WHERE-IS, WITH ALL FAULTS" BASIS, WITHOUT RECOURSE AND WITHOUT ANY REPRESENTATION
OR WARRANTY (EXPRESS OR IMPLIED) WHATSOEVER EXCEPT AS MAY EXPRESSLY BE SET FORTH IN THE AGREEMENT OF SALE AND HEREIN.

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit I	1	 

    	 

    

 

IN WITNESS WHEREOF,
Assignor has executed this Assignment and Assumption Agreement on this ____ day of _______________, 201__, which instrument is
effective this date.

 

	ASSIGNEE:
	 
	BR CREEKSIDE LLC,
	a Delaware limited liability company
	 	 	 	 	 	 	 
	By:	BR Hawthorne Creekside JV, LLC, a Delaware limited liability company, its sole Member
	 	 	 	 	 	 	 
	 	By:	BR Creekside Managing Member, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	By:	BEMT Creekside, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	 	By:	Bluerock Residential Holdings, L.P., a Delaware limited partnership, its sole member
	 	 	 	 	 	 	 
	 	 	 	 	By: 	Bluerock Residential Growth REIT, Inc., a Maryland corporation, its general partner
	 	 	 	 	 	 	 
	 	 	 	 	 	By:	 
	 	 	 	 	 	 	R. Ramin Kamfar, Chief Executive Officer and President

 

	ASSIGNEE:	 
	 	 
	 
	 	 
	By:	 
	Name:	 
	Title:	 

 

List of Exhibits:

 

	 	A	-	Property Description
	 	B	-	
        Service Contracts

 

    	CREEKSIDE
                                         APARTMENTS -AGREEMENT OF PURCHASE AND SALE
Exhibit I	2	 

    	 

    

 

EXHIBIT J

 

FIRPTA AFFIDAVIT

 

Section 1445 of the
Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign
person. To inform ___________________, a _______ (“Transferee”), that withholding of tax is not required upon
the disposition of a U.S. real property interest by BR CREEKSIDE LLC, a Delaware limited liability company (“Transferor”),
the undersigned hereby certifies as follows:

 

1.         Transferor is
not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Internal Revenue
Code and Income Tax Regulations);

 

2.         Seller is not
a disregarded entity as defined in IRC Section 1445-2(b)(2)(iii);

 

3.         Transferor's
U.S. employer identification number is: #_________________;

 

4.         Transferor’s
office address is c/o Bluerock Real Estate, L.L.C., 712 Fifth Avenue, 9th Floor, New York, NY 10019.

 

Transferor understands
that this certification may be disclosed to the Internal Revenue Service by the Transferee and that any false statement contained
herein could be punished by fine, imprisonment, or both.

 

Under penalties of
perjury, the undersigned, in the capacity set forth below, hereby declares that he has examined this certification and to the best
of his knowledge and belief it is true, correct, and complete, and the undersigned further declares that he has authority to sign
this document in such capacity.

 

EXECUTED to be effective
as of the ____ day of _______________, 201__.

 

[Signature on following page]

 

    	CREEKSIDE
                                         APARTMENTS - AGREEMENT OF PURCHASE AND SALE
Exhibit J	1	 

    	 

    

 

	Seller:
	 
	BR CREEKSIDE LLC,
	a Delaware limited liability company
	 	 	 	 	 	 	 
	By:	BR Hawthorne Creekside JV, LLC, a Delaware limited liability company, its sole Member
	 	 	 	 	 	 	 
	 	By:	BR Creekside Managing Member, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	By:	BEMT Creekside, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 	 	 
	 	 	 	By:	Bluerock Residential Holdings, L.P., a Delaware limited partnership, its sole member
	 	 	 	 	 	 	 
	 	 	 	 	By: 	Bluerock Residential Growth REIT, Inc., a Maryland corporation, its general partner
	 	 	 	 	 	 	 
	 	 	 	 	 	By:	 
	 	 	 	 	 	 	R. Ramin Kamfar, Chief Executive Officer and President

 

    	CREEKSIDE
                                         APARTMENTS - AGREEMENT OF PURCHASE AND SALE
Exhibit J	2	 

    	 

    

 

EXHIBIT K

 

INTENTIONALLY OMITTED

 

    	CREEKSIDE
                                         APARTMENTS - AGREEMENT OF PURCHASE AND SALE
Exhibit K	1	 

    	 

    

 

EXHIBIT L

 

LIST OF PROPERTY INFORMATION

 

(a)         Tax Statements. Copies or a summary
of ad valorem tax statements relating to the Property for the current year or other current tax period (if available) and for the
24 months preceding the date of this Agreement;

 

(b)         Maintenance Records. All available
maintenance work orders for the 12 months preceding this Agreement;

 

(c)         List of Capital Improvements. A
list of all capital improvements known to the Seller and performed on the Property within the 36 months preceding this Agreement
and copies of current and historical (prior 36 months) capital budgets;

 

(d)         Reports. Any environmental, soil,
structural engineering, drainage and other physical inspection reports, assessments, audits and surveys related to the Property;

 

(e)         Plans and Specifications. All construction
plans and specifications relating to the original development of the Property and any major capital repairs or tenant improvements;

 

(f)          Insurance. Copies of Seller’s
certificates of insurance for the Property and any notices received from insurance carriers;

 

(g)         Proceedings. Copies of any documents
or materials (except for privileged documents) relating to any litigation, investigation, condemnation, or proceeding of any kind
pending or threatened affecting any of the Property or the ability of Seller to consummate the transaction contemplated by this
Agreement;

 

(h)         Existing Title and Survey Documents.
Copy of Seller’s existing title insurance policy and any existing surveys of the Property;

 

(i)          Personal Property Inventory. A list
of all tangible personal property and stored materials owned by the Seller and used in connection with the Property, together with
a list of any and all such tangible personal property expressly excluded from the conveyance and contemplated hereby pursuant to
this Agreement;

 

(j)          Architectural and Engineering Records.
Copies of: any and all elevator inspection certificates and reports; mechanical and electrical inspection reports; geotechnical
reports; warranties (roof, mechanical equipment, etc.); building permits and certificates of occupancy; any structural and engineering
studies prepared since original construction; ADA surveys and reports; notices of any violations of building or fire codes; maintenance
logs for major equipment; and plans for any rooftop antenna installations;

 

    	CREEKSIDE
                                         APARTMENTS - AGREEMENT OF PURCHASE AND SALE
Exhibit L	1	 

    	 

    

 

(k)         Accounting and Lease Administration
Records. Copies of: operating expense reconciliations and billings for the prior 24 months; audited financial statements for the
prior 3 years; fixed asset and accumulated depreciation schedules; budgets for the current and prior years with supporting assumptions;
operating statements for the current year in comparison to budget; list of outstanding receivables and age receivable report; general
ledger for the current and prior years; account summaries for prior 3 years for all tenants; all previously prepared lease summaries;
and a summary of current lease negotiations;

 

(l)          Property Management Records. Copies
of: tenant service call log; any notices of default received by or sent to tenants or contractors within the last 12 months; stored
materials inventory; a list of management and engineering personnel charged to the Property along with allocation percentages;
utility bills, real estate tax bills, and personal property bills for prior 36 months; current real estate tax assessment notice;
real estate tax assessment appeal history for prior 36 months (proposed vs. actual); current real estate tax invoice receipt; tenant
list including names, corporate addresses, billing and mail address, phone numbers and contact person; stacking plans; invoice
files (copies of current year’s paid invoices); and current building contacts, including property manager, accountant and
lease administrator;

 

(m)         Land/Development Records. Copies
of: any easements, CCRs or other recorded documents affecting the Property, and any unrecorded agreements to which Purchaser would
be subject post-closing; all agreements with or applications to any governmental authority relating to zoning, use, development,
subdivision or planning of the Property; and information relating to the availability and location of utilities;

 

(n)         Other. Copies of any written notices
from any governmental agencies or tenants regarding the Property.

 

    	CREEKSIDE
                                         APARTMENTS - AGREEMENT OF PURCHASE AND SALE
Exhibit L	2	 

    	 

    

 

EXHIBIT M

 

LEAD-BASED PAINT DISCLOSURE

 

EVERY PURCHASER OF ANY INTEREST IN RESIDENTIAL
REAL PROPERTY ON WHICH A RESIDENTIAL DWELLING WAS BUILT PRIOR TO 1978 IS NOTIFIED THAT SUCH PROPERTY MAY PRESENT EXPOSURE TO LEAD
FROM LEAD-BASED PAINT THAT MAY PLACE YOUNG CHILDREN AT RISK OF DEVELOPING LEAD POISONING. LEAD POISONING IN YOUNG CHILDREN MAY
PRODUCE PERMANENT NEUROLOGICAL DAMAGE, INCLUDING LEARNING DISABILITIES, REDUCED INTELLIGENCE QUOTIENT, BEHAVIORAL PROBLEMS, AND
IMPAIRED MEMORY. LEAD POISONING ALSO POSES A PARTICULAR RISK TO PREGNANT WOMEN. THE SELLER OF ANY INTEREST IN RESIDENTIAL REAL
PROPERTY IS REQUIRED TO PROVIDE THE PURCHASER WITH ANY INFORMATION ON LEAD-BASED PAINT HAZARDS FROM RISK ASSESSMENTS OR INSPECTIONS
IN THE SELLER'S POSSESSION, IF ANY, AND NOTIFY THE PURCHASER OF ANY KNOWN LEAD-BASED PAINT HAZARDS. A RISK ASSESSMENT OR INSPECTION
FOR POSSIBLE LEAD-BASED PAINT HAZARDS IS RECOMMENDED PRIOR TO PURCHASE.

 

    	CREEKSIDE APARTMENTS - AGREEMENT OF PURCHASE AND SALE
Exhibit M	1OPTION CANCELLATION AND RELEASE AGREEMENT

 

This OPTION CANCELLATION
AND RELEASE AGREEMENT (this “Agreement”) is entered into by and between Alliqua, Inc., a Florida
corporation (the “Company”) and Richard Rosenblum (the “Optionholder”), effective
as of January 6, 2014.

 

WHEREAS, the
Company previously granted the Optionholder certain nonqualified stock options (the “Options”), in the
amounts and with the exercise prices as set forth in Exhibit A, and subject to the terms set forth in the applicable stock
option agreement (the “Option Agreements”); and

 

 WHEREAS,
the Company and the Optionholder desire to cancel the Options as of the date hereof (the “Cancellation Date”),
so that on and after the Cancellation Date, the Options and the Option Agreements shall be cancelled and of no further effect;
and

 

WHEREAS, the
Company desires to grant the Optionholder shares of common stock of the Company in connection with the cancellation of the Options
and the Option Agreements.

 

NOW, THEREFORE,
in consideration of the mutual covenants contained herein and other good and valuable consideration, the sufficiency of which are
hereby acknowledged, the parties to this Agreement agree as follows:

 

CANCELLATION OF OPTIONS

 

1.1Cancellation
of Options. In exchange for the consideration described in Section 1.2 below, the Optionholder hereby agrees that the
Option Agreements and the Options granted thereunder, shall be cancelled, terminated, and of no further force or effect, effective
on the Cancellation Date, and neither the Company nor the Optionholder shall have any further rights or obligations with respect
to the Options, the Option Agreements, or with respect to any common stock of the Company that could have been purchased upon exercise
of the Options under the Option Agreements.

 

1.2 Payment.
In exchange for the Optionholder’s agreement to cancel the Options, the Option Agreements and any other rights, obligations
and liabilities of the Company granting the Optionholder the right to purchase shares of the Company’s common stock or other
ownership interests of the Company and the release of claims set forth in Section 1.3, the Company hereby agrees to grant
the Optionholder, pursuant to the Alliqua, Inc. 2011 Long-Term Incentive Plan, one hundred ninety-four thousand six hundred sixty-seven
(194,667) full shares of common stock of the Company as of the Cancellation Date.

 

1.3 Release.

 

(a)Effective
as of the Cancellation Date, the Optionholder, for the Optionholder and the Optionholder’s successors and assigns forever,
does hereby unconditionally and irrevocably compromise, settle, remise, acquit and fully and forever release and discharge the
Company and its respective successors, assigns, parents, divisions, subsidiaries, and affiliates, and its present and former officers,
directors, employees and agents (collectively, the “Released Parties”) from any and all claims, counterclaims,
set-offs, debts, demands, choses in action, obligations, remedies, suits, damages and liabilities in connection with any rights
to acquire securities of the Company pursuant to the Options, the Option Agreements and the common stock of the Company issuable
thereunder (collectively, the “Releaser’s Claims”), whether now known or unknown or suspected or
claimed, whether arising under common law, in equity or under statute, which the Optionholder or the Optionholder’s successors
or assigns ever had, now have, or in the future may claim to have against the Released Parties and which may have arisen at any
time on or prior to the date hereof; provided that this Section 1.3(a) shall not apply to any of the obligations or liabilities
of the Released Parties arising under or in connection with this Agreement.

 

    	 

    	 

    

 

(b)The Optionholder
covenants and agrees never to commence, voluntarily aid in any way, prosecute or cause to be commenced or prosecuted against the
Released Parties any action or other proceeding based on any of the released Releaser’s Claims which may have arisen at any
time on or prior to the date hereof.

 

1.4Further Assurances. Each
party to this Agreement agrees that it will perform all such further acts and execute and deliver all such further documents as
may be reasonably required in connection with the consummation of the transactions contemplated hereby in accordance with the terms
of this Agreement.

 

1.5Representations and Warranties.
The Optionholder hereby represents and warrants to the Company that the Optionholder has full power and authority to enter into
and perform this Agreement and to carry out the transactions contemplated hereby. This Agreement constitutes the legal, valid,
and binding obligation of the Optionholder, enforceable against the Optionholder in accordance with its terms. The Optionholder
has read and understood this Agreement and is entering into this Agreement voluntarily. The Optionholder agrees that this Agreement
provides good and valuable consideration for the Optionholder’s agreements herein.

 

MISCELLANEOUS

 

2.1Captions.
The captions used in this Agreement are for reference purposes only, and shall not in any way affect the meaning or interpretation
of this Agreement.

 

2.2Parties in
Interest. This Agreement shall be binding upon and shall inure to the benefit of the parties to this Agreement and their respective
heirs, executors, administrators, successors, and assigns.

 

2.3Execution.
This Agreement may be executed in two or more counterparts, all of which taken together shall constitute one instrument. The exchange
of copies of this Agreement and of signature pages by facsimile transmission shall constitute effective execution and delivery
of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties
transmitted by facsimile shall be deemed to be their original signatures for any purpose whatsoever.

 

2.4Entire Agreement.
This Agreement contains the entire understanding of the parties to this Agreement with respect to the subject matter contained
in this Agreement, and supersedes all prior agreements and understandings among the parties with respect to such subject matter.

 

2.5Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF FLORIDA, WITHOUT
REGARD TO ITS PRINCIPLES OF CONFLICT OF LAWS.

 

2.6Notice.
Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery
or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. Notice shall
be addressed to the Company at its principal executive office and to the Optionholder at the address that he most recently provided
to the Company.

 

* * * * * * * *

    	2

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed by its duly authorized officer, and the Optionholder, to evidence his consent
and approval of all the terms hereof, has duly executed this Agreement as of the date above.

 

	 	ALLIQUA, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Brian Posner
	 	Name:	Brian Posner
	 	Title:	Chief Financial Officer
	 	 	 

 

	 	OPTIONHOLDER
	 	 	 
	 	 	 
	 	/s/ Richard Rosenblum
	 	Richard Rosenblum
	 	 	 
	 	Address:	 
	 	 	 
	 	 	 

 

 

 

 

    	3

    	 

    

 

EXHIBIT A

 

 

	Date of Grant	Options	Adjusted for 43.75:1 Stock Split	Exercise Price	Adjusted for 43.75:1 Stock Split
	December 9, 2010	5,000,000	114,286	$0.145	$6.34
	March 1, 2011	1,666,667	38,095	$0.21	$9.19
	May 16, 2012	5,000,000	114,286	$0.20	$8.75
	May 16, 2012	500,000	11,429	$0.20	$8.75

 

    	4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}]]