Document:

FORM OF INTELLECTUAL PROPERTY
ASSIGNMENT AND LICENSE AGREEMENT

     

    This
Intellectual Property Assignment and License Agreement (this “Agreement”) is made
and entered into this ___ day of December, 2010  (the “Execution Date”), to
be effective as of _____________, 2010 (the Effective Date”) by and between
Preferred
Apartment Advisors, LLC  (“Licensor”) and Preferred
Apartment Communities, Inc. (“Licensee”).

     

    WITNESSETH:

     

    WHEREAS, the parties
acknowledge that they are affiliated and related companies that are entering
into this Agreement to memorialize their understandings with respect to the
chain of title, ownership and licensing of certain intellectual
property;

     

    WHEREAS, the parties
acknowledge that part of the Intellectual Property (later defined) was owned by
the Licensee prior to the Effective Date and was assigned to the Licensor, and
all other Intellectual Property created or owned thereafter by Licensee was and
is hereby assigned to Licensor; and

     

    WHEREAS, Licensor now desires
to memorialize its grant to Licensee, of a right and license to use the
Intellectual Property, subject to the limitations provided herein.

     

    NOW, THEREFORE, in
consideration of the mutual promises and agreements contained herein, and in
order for the parties to perform their respective obligations and enjoy their
rights under the Management Agreement (as defined below) and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     

    1.           ASSIGNMENT OF INTELLECTUAL
PROPERTY.   Licensee does hereby, unconditionally and
irrevocably assign, transfer and convey unto the Licensor, and confirms its past
assignment, transfer and conveyance of, all Intellectual Property, effective as
of the date that Licensee create(s)(d) or contribute(s)(ed) such Intellectual
Property. Any Intellectual Property created by Licensee in the future, shall be
automatically assigned to Licensor and be licensed back to Licensee in
accordance with this Agreement. The Licensee will upon request of the Licensor,
at no extra cost to Licensor, do, execute, acknowledge and deliver or cause to
be done, executed, acknowledged and delivered all such further acts, deeds,
assignments, transfers, conveyances, powers of attorney and assurances as may be
requested by the Licensor to carry out the intent of this Agreement or to
otherwise perfect, record, confirm, or enforce Licensor’s rights in and to the
Intellectual Property.

     

    2.   
        LICENSE OF INTELLECTUAL
PROPERTY.

     

    2.1           Licensor
hereby grants to Licensee, subject to the terms and conditions hereinafter
contained, a worldwide, fully-paid, royalty-free, non-exclusive right and
license to use all  (i) copyrightable materials (including relevant
logos and marketing materials) (the “Copyrights”) and (ii)
Trade Secrets, owned by Licensor, regardless of when such rights were created
(collectively, the “Intellectual
Property”) for the internal operation of Licensee’s business and to
enable Licensee to perform its obligations and enjoy its rights under the
Management Agreement (as hereinafter defined).  As used herein “Trade Secrets” shall
include all technical or non-technical data, a formula, a pattern, a
compilation, a program, a method, a technique, a process, financial data,
product plans, software programs (including the object and source code thereto)
or a list (whether in written form or otherwise) of actual or potential
customers, which is not commonly known by or available to the public and which
information (A) derives economic value, actual or potential, from not being
generally known to and not being readily ascertainable by proper means by other
persons who can obtain economic value from its disclosure or use and (B) is the
subject of efforts that are reasonable under the circumstances to maintain its
secrecy.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.2           The
Intellectual Property contemplated hereunder, shall include (i) any amendments,
modifications and supplements thereto (ii) any new Intellectual Property
developed by the Licensee during the term of this Agreement and (iii) any new
Intellectual Property developed by the Licensor during the term of this
Agreement, to which Licensor provides Licensee with use or access.

     

    2.3           The
parties hereby specifically acknowledge the exclusion of Licensee’s trademarks
from the Intellectual Property license granted hereunder, as such rights are
addressed in a separate written agreement between the parties.

     

    3.           TERM AND
TERMINATION.

     

    3.1           This
Agreement shall be deemed to begin on the Effective Date and automatically
terminate upon termination of that certain Management Agreement by and among
Licensor, Licensee and Preferred Apartment Communities Operating Partnership,
L.P., dated as of November 19, 2010 (the “Management Agreement”).

     

    3.2           Either
party shall have the right to terminate this Agreement upon the material breach
of this Agreement by the other party, which remains uncured more than thirty
(30) days after receipt of written notice of such breach.

     

    3.3           The
parties may mutually agree in writing to terminate this Agreement.

     

    3.4           The
exercise of any right of termination under this Section shall not affect any
rights which have accrued prior to termination, and shall be without prejudice
to any other legal or equitable remedies to which the terminating party may be
entitled.

     

    4.           OWNERSHIP AND
RESTRICTIONS.

     

    4.1           Licensee
acknowledges that this Agreement conveys only the license expressly set forth
herein, and that it acquires no ownership rights in or to the Intellectual
Property.

     

    4.2           While
this Agreement is still in effect, Licensee agrees to use the Intellectual
Property only in the form and manner and with appropriate proprietary legends as
prescribed from time to time by Licensor, and will not use any other copyrighted
material or other intellectual property in combination with the Intellectual
Property without the prior consent of Licensor.

     

    4.3           Licensee
hereby acknowledges Licensor’s right, title and interest in and to the
Intellectual Property and Licensor’s exclusive right to use, register and
license the use of the Intellectual Property and agrees not to claim or assert
any (i) title to nor attempt to register the Intellectual Property anywhere
in world or (ii) right to use the Intellectual Property, except to the
extent expressly permitted by this Agreement.

     

    4.4           Any
and all goodwill arising from Licensee’s use or sublicensing of the Intellectual
Property shall inure solely to the benefit of Licensor, and Licensee shall not,
nor permit any one else, to take any action that could be detrimental to the
goodwill associated with the Intellectual Property.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    4.5           Notwithstanding
any other provision herein, Licensee shall not, without the consent of the
Licensor, (i) distribute or share any of the Intellectual Property with a third
party; or (ii) modify, edit, or otherwise alter the Intellectual Property,
including any of the Copyrights.

     

    5.           INFRINGEMENT OR OTHER CLAIMS AGAINST
THIRD PARTIES.  While the Agreement is still in effect,
Licensee shall notify Licensor promptly of any unauthorized use of the
Intellectual Property by others of which Licensee becomes
aware.  Licensor shall thereafter, have the sole right, at Licensor’s
expense, to make any demand or bring any action on account of any such
unauthorized use.  Licensee shall cooperate fully with Licensor, as
Licensor may reasonably request, in connection with any such action or demand
brought by Licensor in accordance with this Agreement. Licensor shall directly
pay all costs and expenses associated with such action or demand.

     

    6.           MUTUAL REPRESENTATIONS AND
WARRANTIES.  Each party hereby represents, warrants and
covenants to the other that:

     

    6.1           It
is a business entity duly organized and validly existing under the laws of its
jurisdiction of incorporation and that it has the power to execute, deliver, and
perform its obligations under this Agreement.

     

    6.2           It
has all applicable powers and all material governmental licenses,
authorizations, permits, consents and approvals required to carry on its
business as now conducted.

     

    6.3           The
execution, delivery and performance of this Agreement by it has been authorized
by all necessary corporate action; and

     

    6.4           To
each party’s knowledge, the execution, delivery and performance of this
Agreement by it does not and will not (i) violate its organizational documents,
(ii) violate any applicable law, judgment, injunction, order or decree, or (iii)
require any notice or consent or other action by any person under, constitute a
default under, or give rise to any right of termination, cancellation or
acceleration of any right or obligation of it or to a loss of any benefit to
which it is entitled under any agreement or other instrument binding upon it or
any license, franchise, permit or other similar authorization held by
it.

     

    7.           INDEMNIFICATION.

     

    7.1           Each
party shall indemnify, defend and hold the other party, its affiliates and their
officers, directors, employees, agents, independent contractors and
representatives harmless from and against all damages, costs, expenses, and
liabilities, including, without limitation, reasonable attorneys fees and
expenses, (collectively “Losses”) arising from
claims, allegations or actions of third parties resulting from the Indemnifying
Party’s (i) breach of any representations, warranties or obligations of this
Agreement  (ii) alleged negligence, recklessness or willful misconduct
or (iii) alleged violation of law.

     

    7.2           Licensor
shall indemnify, defend and hold Licensee harmless from and against any
allegation, claim or action by a third party based on a claim that any of the
Intellectual Property violate such third party’s intellectual property
rights.  Licensor will defend such action, claim, suit or proceeding
at its own expense and shall indemnify and hold Licensee harmless from and
against all Losses incurred by Licensee or arising in connection therewith.
Licensor shall have no liability or obligation to Licensee hereunder with
respect to any claim based upon (i) use of the Intellectual Property in an
application or environment or on a platform or with devices, if applicable, for
which the Intellectual Property was not designed or contemplated, (ii)
modifications, alterations, combinations or enhancements of the Intellectual
Property not created by Licensor, or (iii) any intellectual property in which
Licensee or any of its affiliates has an interest.  Licensee shall
indemnify and hold Licensor harmless from all costs, damages, liabilities and
expenses (including reasonable attorneys' fees) arising from any claim based
upon items enumerated in clauses (i) through (iii) above.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    7.3           Licensee
shall indemnify, defend and hold Licensor harmless from and against any
allegation, claim or action by a third party based on the operation of
Licensee’s business or use of the Intellectual Property, other than in
connection with infringement as provided for above.

     

    8.           LIABILITY
LIMITATIONS.  NEITHER PARTY SHALL BE RESPONSIBLE TO THE OTHER
PARTY WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE FOR
INCIDENTAL, SPECIAL, INDIRECT, OR CONSEQUENTIAL LOSS OR DAMAGE.

     

    9.           CONFIDENTIALITY.  The
Licensee covenants and agrees that:

     

    9.1           Licensee
shall hold in confidence and not directly or indirectly use, copy, reveal,
report, publish, disclose or transfer any of the Proprietary Information
(defined below) to any person or entity except as necessary for Licensee to
carry out its obligations or exercise its rights under this Agreement, or the
Management Agreement, or utilize any of the Proprietary Information for any
purpose not explicitly authorized hereunder, except that Licensee may disclose
the Proprietary Information to its employees, consultants, agents, and financial
and legal advisors (hereinafter “Consultants”),
provided such Consultants have a need to know and have agreed to keep the
Proprietary Information confidential.  The limitations contained in
this Section 9 shall
continue (i) with regard to Confidential Information (defined below), for
the duration of this Agreement and for three (3) years thereafter, and
(ii) with regard to the Trade Secrets, for so long as such information
retains its status as a trade secret.

     

    9.2           In
the event Licensee becomes legally compelled to disclose any of the Proprietary
Information, Licensee will provide to Licensor prompt notice so that Licensor
may seek a protective order or other appropriate remedy and/or waive compliance
with the provisions of this Agreement.  In the event that such
protective order or other remedy is not obtained, or compliance with the
provisions of this Agreement is waived, Licensee will furnish only that portion
of the Proprietary Information which is legally required.

     

    9.3           The
covenants and agreements contained in this Section 9 shall inure
to the benefit of, and may be enforced by, the successors and assigns of each
party and shall survive any termination of this Agreement, whether such
termination is at the instance of either party, and regardless of the reasons
therefore. The protection afforded hereunder is in addition to and does not
replace any prior confidentiality or nondisclosure obligation of one party to
the other.

     

    As used
herein “Confidential
Information” shall mean any data or information other than the Trade
Secrets, without regard to form, that is of value to Licensor and is not
generally known to competitors of Licensor, which may include information
relating to its customers.  Confidential Information also includes any
information contemplated hereunder which Licensor obtains from another party
which Licensor treats as proprietary or designates as confidential information,
whether or not owned or developed by Licensor.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    As used
herein “Proprietary
Information” shall mean the Trade Secrets and Confidential Information
collectively; provided that Proprietary Information shall not include any
materials or information that: (A) are or become publicly known or generally
utilized by others engaged in the same business or activities in which Licensor
utilized, developed or otherwise acquired such information; or (B) are known to
Licensee prior to Licensor’s disclosure pursuant to this Agreement, not having
been obtained from Licensor, and are evidenced by Licensee’s written records
prepared prior to the date of this Agreement; (C) are furnished to others by
Licensor with no restriction on disclosure or (D) are independently
developed.  Failure to mark any of the Proprietary Information as
confidential shall not affect its status as Proprietary Information under this
Agreement.

     

    10.           SUB-CONTRACTOR
CONFIDENTIALITY.  Subject to the applicable provisions of
Section 3.5 herein, If Licensee shall appoint any sub-contractor then Licensee
may, to the extent necessary, disclose the Proprietary Information to such
sub-contractor subject to such sub-contractor giving Licensee an undertaking in
similar terms to the provisions of Section
9.

     

    11.           REASONABLENESS;
REMEDIES.  In the event either party is in breach, or threatens
to breach any covenants of this Agreement, the parties acknowledge and agree
that the other party would be greatly damaged and such damage(s) will be
irreparable and difficult to quantify; therefore, such aggrieved party may apply
for injunctive or other equitable relief to restrain such breach or threat of
breach, without impairing, invalidating, negating or voiding such party’s rights
to relief in either law or equity. In the event that any or all of the covenants
hereunder are determined by the court of competent jurisdiction to be invalid or
unenforceable, by reason that the breadth of restrictions is too great, or for
any other reason, these covenants shall be modified and interpreted to the
maximum extent to which they may be enforceable.

     

    12.           MISCELLANEOUS.

     

    12.1           This
Agreement may not be transferred or assigned by either party, without the prior
written consent of the other party, which consent shall not be unreasonably
withheld.

     

    12.2           The
invalidity or unenforceability of any particular provision of this Agreement
shall not affect the other provisions of this Agreement, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provision
were omitted. No waiver by any party of any breach of any provision hereof shall
constitute a waiver of any other breach of that or any other provision
hereof.

     

    12.3           The
parties acknowledge and agree that during the term of the Agreement, Licensor
shall be deemed to be an intended and named third party beneficiary of any
permitted sublicense agreements between Licensee and any
sublicensees.

     

    12.4           
The parties invoke the laws of the State of Georgia, USA, regarding the
protection of their rights and enforcement of their obligations hereunder, and
they mutually stipulate and agree that this Agreement is in all respects
(including but not limited to, all matters of interpretation, validity,
performance and the consequences of breach and termination) to be exclusively
construed, governed and enforced in accordance with the internal laws of the
State of Georgia, USA, excluding all conflict of laws rules, as from time to
time amended and in effect.  Any action related to or arising out of
this Agreement shall be brought solely in a court of competent jurisdiction in
the state of Georgia, Cobb County, and the parties irrevocably commit to the
jurisdiction of said courts.

     

    12.5           The
headings and captions used in this Agreement are for convenience of reference
only and shall in no way define, limit, expand or otherwise affect the meaning
or construction of any provision of this Agreement.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    12.6           All
notices under this Agreement required to be given hereunder shall be given in
writing and shall be delivered either by hand, by nationally recognized
overnight courier, fees pre-paid by sender, or by facsimile or email (with
confirmation copy sent by U.S. Mail) addressed to the receiving
party.  Any such notice shall be deemed delivered upon the earlier of
actual receipt or three (3) days after deposit of such notice, properly
addressed and delivery fees paid, with the overnight courier, or at the time of
delivery by facsimile or email if such delivery is made by 5:00 o’clock p.m.
and, if not, as of 8:00 o’clock a.m. (local time of the receiving party) on the
next following business day.

     

    12.7           Neither
party shall be responsible for any delay or failure in performing any part of
this Agreement when it is caused by fire, flood, explosion, war, strike,
embargo, government requirement, civil or military authority, act of God, act or
omission of carriers or other similar causes beyond its control.

     

    12.8           This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which together shall be deemed for all purposes
to constitute one and the same instrument.

     

    12.9           The
parties hereto acknowledge and agree that any Sections which by their nature are
intended to survive the termination of this Agreement shall so survive,
including Sections 3.5, 4, 7, 8, 9, 10, 11 and 11.

     

    12.10         Each
party is responsible for complying with all laws applicable to their performance
under this Agreement, including any restrictions under import and export
laws.

     

    12.11         This
Agreement, including the recitals hereto, constitutes the entire agreement
between the parties with respect to the subject matter of this Agreement, and
supersedes any prior agreements or understandings, whether oral or written,
between the parties with respect to such subject matter.

     

    12.12         No amendment or waiver of this
Agreement or any provision hereof shall be effective unless in a writing signed
by both of the parties.

     

    IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed by their duly
authorized representatives as of the date first above written.

     

    
      
        
          
            
              	
                      LICENSOR:
      PREFERRED APARTMENT

                      ADVISORS,
      LLC

                    
	 
      
	 
      
	
                      By:
      John A. Williams

                    
	
                      Its:
      President and Chief Executive Officer

                    
	 
      
	
                      LICENSEE:
      PREFERRED APARTMENT COMMUNITIES, INC.

                    
	 
      
	 
      
	
                      By: John A. Williams

                    
	
                      Its:
      President and Chief Executive
Officer

                    

            

          

        

      

    

     

    
      
         

      

      
        -6-FORM OF RESTRICTED
STOCK AGREEMENT

    PURSUANT
TO THE

    PREFERRED
APARTMENT COMMUNITIES, INC.

    2010
STOCK INCENTIVE PLAN

     

    THIS
AGREEMENT (this
“Agreement”)
made as of the ___ day of                 ,
2010, by and between Preferred Apartment Communities, Inc. (the “Company”) and                         
(the “Participant”).

     

    WITNESSETH:

     

    WHEREAS, the Company has
adopted the Preferred Apartment Communities, Inc. 2010 Stock Incentive Plan (the
“Plan”), which
is administered by a Committee appointed by the Company’s Board of Directors
(the “Committee”);
and

     

    WHEREAS, pursuant to Section
8.1 of the Plan, the Committee may grant to Non-Employee Directors shares of its
Class A Common Stock, par value $0.01 per share (“Common Stock”), in
the amount set forth below; and

     

    WHEREAS, the Shares (as
defined below) are to be subject to certain restrictions;

     

    NOW, THEREFORE, for and in
consideration of the mutual promises herein contained, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

     

    1.           Grant of
Shares.  Subject to the
restrictions, terms and conditions of this Agreement, the Company awarded the
Participant [●] shares
of validly issued Common Stock (the “Shares”) on                 ,
2010 (the “Grant
Date”).  Pursuant to Section 2, the Shares
are subject to certain restrictions, which restrictions relate to the passage of
time as director of the Company.  While such restrictions are in
effect, the Shares subject to such restrictions shall be referred to herein as
“Restricted
Stock.”

     

    2.           Restrictions
on Transfer.  The Participant
shall not sell, transfer, pledge, hypothecate, assign or otherwise dispose of
the Shares, except as set forth in the Plan or this Agreement.  Any
attempted sale, transfer, pledge, hypothecation, assignment or other disposition
of the Shares in violation of the Plan or this Agreement shall be void and of no
effect and the Company shall have the right to disregard the same on its books
and records and to issue “stop transfer” instructions to its transfer
agent.

     

    
      
        
        

      

      
         

        
          

        

      

      
         

      

    

    3.           Restricted
Stock.

     

    (a)           Retention
of Certificates.   Promptly
after the date of this Agreement, the Company shall issue stock certificates
representing the Restricted Stock unless, to the extent permitted under
applicable law, it elects to issue the Shares in the form of uncertificated
shares and recognize such ownership through an uncertificated book entry account
maintained by the Company (or its designee) on behalf of the Participant or
through another similar method. The stock certificates shall be registered in
the Participant’s name and shall bear any legend required under the Plan or
Section
4(a).  Unless held in uncertificated book entry form, such
stock certificates shall be held in custody by the Company (or its designated
agent) until the restrictions thereon shall have lapsed.  Upon the
Company’s request, the Participant shall deliver to the Company a duly signed
stock power, endorsed in blank, relating to the Restricted Stock.  If
the Participant receives a stock dividend on the Restricted Stock or the shares
of Restricted Stock are split or the Participant receives any other shares,
securities, moneys or property representing a dividend on the Restricted Stock
(other than cash dividends on or after the date of this Agreement) or
representing a distribution or return of capital upon or in respect of the
Restricted Stock or any part thereof, or resulting from a split-up,
reclassification or other like changes of the Restricted Stock, or otherwise
received in exchange therefor, or any warrants, rights or options issued to the
Participant in respect of the Restricted Stock (collectively “RS Property”), the
Participant will also immediately deposit with and deliver to the Company any of
such RS Property, including, without limitation, any certificates representing
shares duly endorsed in blank or accompanied by stock powers duly executed in
blank, and such RS Property shall be subject to the same restrictions,
including, without limitation, the restrictions in this Section 3(a), as the
Restricted Stock with regard to which they are issued and shall herein be
encompassed within the term “Restricted Stock.”

     

    (b)           Rights
with Regard to Restricted Stock.  Subject to Section 8, the
Participant will have the right to vote the Restricted Stock, to receive and
retain any dividends payable to holders of record of Restricted Stock on and
after the transfer of the Restricted Stock (although such dividends shall be
treated, to the extent required by applicable law, as additional compensation
for tax purposes if paid on Restricted Stock and stock dividends will be subject
to the restrictions provided in Section 3(a)), and to
exercise all other rights, powers and privileges of a holder of Common Stock
with respect to the Restricted Stock set forth in the Plan, except
that:  (i) the Participant shall not be entitled to delivery of the
stock certificate or certificates representing the Restricted Stock until the
Restriction Period shall have expired; (ii) the Company (or its designated
agent) shall retain custody of the stock certificate or certificates
representing the Restricted Stock and the other RS Property during the
Restriction Period; (iii) no RS Property shall bear interest or be segregated in
separate accounts during the Restriction Period; and (iv) the Participant shall
not sell, assign, transfer, pledge, exchange, encumber or dispose of the
Restricted Stock during the Restriction Period.

     

    (c)           Vesting.  The Restricted
Stock shall become vested and cease to be Restricted Stock (but shall remain
subject to Section
5) pursuant to the following schedule; provided that the Participant has
not had a Termination any time prior to the vesting date:

     

    
      
        
          
            
              	
                      Vesting Date

                    	 
      	
                      Number of Shares

                    
	 
      	 
      	 
      
	
                      First
      Anniversary of Grant Date

                    	
                        

                    	
                      100%

                    

            

          

        

      

    

    

    There
shall be no proportionate or partial vesting in the period prior to the vesting
date and all vesting shall occur only on the vesting date; provided, however, that no
Termination has occurred prior to such date.

     

    The
Restricted Stock will become fully vested on a Change in
Control.

    
      
        
        

      

      
        2

        
          

        

      

      
         

      

    

     

    The
provisions of the second paragraph of Section 8.1 of the Plan regarding
Detrimental Activity shall apply to the Restricted Stock.

    

    When any
shares of Restricted Stock become vested, the Company shall promptly issue and
deliver, unless the Company is using book entry, to the Participant a new stock
certificate registered in the name of the Participant for such shares of
Restricted Stock without the legend set forth in Section 4(a) and
deliver to the Participant any related other RS Property, subject to applicable
withholding.

    

    (d)           Forfeiture.  The Participant
shall forfeit to the Company, without compensation, other than repayment of any
par value paid by the Participant for the Shares (if any), any and all
Restricted Stock (but no vested Shares) and RS Property upon the Participant’s
Termination of Directorship for any reason.

     

    (e)           Withholding.  Participant shall
pay, or make arrangements to pay, in a manner satisfactory to the Company, an
amount equal to the amount of all applicable federal, state and local or foreign
taxes that the Company is required to withhold at any time.  In the
absence of such arrangements, the Company or one of its Affiliates shall have
the right to withhold such taxes from the Participant’s normal pay or other
amounts payable to the Participant, including, but not limited to, the right to
withhold any of the Shares otherwise deliverable to the Participant
hereunder.  In addition, any statutorily required withholding
obligation may be satisfied, in whole or in part, at the Participant’s election,
in the form and manner prescribed by the Committee, by delivery of shares of
Common Stock (including, without limitation, the Shares issued under this
Agreement).

     

    (f)           Section
83(b).  If the
Participant properly elects (as required by Section 83(b) of the Code) within 30
days after the issuance of the Restricted Stock to include in gross income for
federal income tax purposes in the year of issuance the fair market value of
such shares of Restricted Stock, the Participant shall pay to the Company or
make arrangements satisfactory to the Company to pay to the Company upon such
election, any federal, state or local taxes required to be withheld with respect
to the Restricted Stock.  If the Participant shall fail to make such
payment, the Company shall, to the extent permitted by law, have the right to
deduct from any payment of any kind otherwise due to the Participant any
federal, state or local taxes of any kind required by law to be withheld with
respect to the Restricted Stock, as well as the rights set forth in Section
3(e).  The Participant acknowledges that it is the
Participant’s sole responsibility, and not the Company’s, to file timely and
properly the election under Section 83(b) of the Code and any corresponding
provisions of state tax laws if the Participant elects to utilize such
election.

     

    (g)           Delivery
Delay.  The delivery of
any certificate representing the Restricted Stock or other RS Property may be
postponed by the Company for such period as may be required for it to comply
with any applicable federal or state securities law, or any national securities
exchange listing requirements and the Company is not obligated to issue or
deliver any securities if, in the opinion of counsel for the Company, the
issuance of the Shares shall constitute a violation by the Participant or the
Company of any provisions of any applicable federal or state law or of any
regulations of any governmental authority or any national securities
exchange.

     

    
      
        
        

      

      
        3

        
          

        

      

      
         

      

    

     

    4.           Legend.  All certificates
representing the Restricted Stock shall have endorsed thereon the following
legends:

     

    (a)           “The
anticipation, alienation, attachment, sale, transfer, assignment, pledge,
encumbrance or charge of the shares of stock represented hereby are subject to
the terms and conditions (including forfeiture) of the Preferred Apartment
Communities, Inc. (the “Company”) 2010 Stock Incentive Plan (as the same may be
amended or amended and restated from time to time, the “Plan”) and an agreement
entered into between the registered owner and the Company dated __________.
Copies of such Plan and agreement are on file at the principal office of the
Company.”

     

    (b)           “The
shares represented by this certificate are subject to restrictions on beneficial
and constructive ownership and transfer for the purpose of the maintenance by
Preferred Apartment Communities, Inc. (the “Company”) of its
status as a real estate investment trust (“REIT”) under the
Internal Revenue Code of 1986, as amended (the “Code”). Subject to
certain further restrictions and except as expressly provided in the Company’s
charter, (i) no person, other than an excepted holder, shall beneficially own or
constructively own shares in excess of the aggregate share ownership
limit.  No excepted holder shall beneficially own or constructively
own shares in excess of the excepted holder limit for such excepted holder, (ii)
no person shall beneficially own or constructively own shares to the extent that
such beneficial or constructive ownership of shares would result in the Company
being “closely held” within the meaning of Section 856(h) of the Code (without
regard to whether the ownership interest is held during the last half of a
taxable year), or otherwise failing to qualify as a REIT (including, but not
limited to, beneficial ownership or constructive ownership that would result in
the Company actually owning or constructively owning an interest in a tenant
that is described in Section 856(d)(2)(b) of the Code if the income derived by
the Company from such tenant would cause the Company to fail to satisfy any of
the gross income requirements of Section 856(c) of the Code), and (iii) any
transfer of shares that, if effective, would result in shares being beneficially
owned by less than 100 persons (determined under the principles of Section
856(a)(5) of the Code) shall be void ab initio, and the intended
transferee shall acquire no rights in such shares.  If any of the
restrictions on transfer or ownership set forth in (i) through (iii) above are
violated, the shares of capital stock represented hereby will be automatically
transferred to a trustee of a trust for the benefit of one or more charitable
beneficiaries.  In addition, the Company may take other actions,
including redeeming shares upon the terms and conditions specified by the Board
of Directors in its sole and absolute discretion if the Board of Directors
determines that ownership or a transfer or other event may violate the
restrictions described above.  Furthermore, upon the occurrence of
certain events, attempted transfers in violation of the restrictions described
above may be void ab
initio.  All capitalized terms in this legend have the meanings
defined in the charter of the Company, as the same may be amended from time to
time, a copy of which, including the restrictions on transfer and ownership,
will be furnished to each holder of capital stock of the Company on request and
without charge.  Requests for such a copy may be directed to the
Secretary of the Company at its principal office.”

     

    
      
        
        

      

      
        4

        
          

        

      

      
         

      

    

     

    (c)           “The
Company will furnish to any stockholder, on request and without charge, a full
statement of the information required by Section 2-211(b) of the Corporations
and Associations Article of the Annotated Code of Maryland with respect to the
designations and any preferences, conversion and other rights, voting powers,
restrictions, limitations as to dividends and other distributions,
qualifications, and terms and conditions of redemption of the stock of each
class which the Company has authority to issue and, if the Company is authorized
to issue any preferred or special class in series, (i) the differences in the
relative rights and preferences between the shares of each series to the extent
set, and (ii) the authority  of the Board of Directors to set such
rights and preferences of subsequent series.  The foregoing summary
does not purport to be complete and is subject to and qualified in its entirety
by reference to the charter of the Company, a copy of which will be sent without
charge to each stockholder who so requests.  Such request must be made
to the Secretary of the Company at its principal office.”

     

    (d)           Any
legend required to be placed thereon by applicable blue sky laws of any
state.

     

    Notwithstanding
the foregoing, in no event shall the Company be obligated to deliver to the
Participant a certificate representing the Restricted Stock prior to the vesting
dates set forth above.

    

    5.           Securities
Representations.  The Shares are
being issued to the Participant and this Agreement is being made by the Company
in reliance upon the following express representations and warranties of the
Participant.

     

    The
Participant acknowledges, represents and warrants that:

    

    (a)           The
Participant has been advised that the Participant may be an “affiliate” within
the meaning of Rule 144 under the Securities Act of 1933, as amended (the “Act”) and in this
connection the Company is relying in part on the Participant’s representations
set forth in this Section
5.

     

    (b)           If
the Participant is deemed an affiliate within the meaning of Rule 144 of the
Act, the Shares must be held indefinitely unless an exemption from any
applicable resale restrictions is available or the Company files an additional
registration statement (or a “re-offer prospectus”) with regard to the Shares
and the Company is under no obligation to register the Shares (or to file a
“re-offer prospectus”).

     

    (c)           If
the Participant is deemed an affiliate within the meaning of Rule 144 of the
Act, the Participant understands that the exemption from registration under Rule
144 will not be available unless (i) a public trading market then exists for the
Common Stock of the Company, (ii) adequate information concerning the Company is
then available to the public, and (iii) other terms and conditions of Rule 144
or any exemption therefrom are complied with; and that any sale of the Shares
may be made only in limited amounts in accordance with such terms and
conditions.

     

    
      
        
        

      

      
        5

        
          

        

      

      
         

      

    

    6.           No
Obligation to Continue Employment.  This Agreement is not an
agreement of employment.  This Agreement does not guarantee that the
Company or its Affiliates will employ or retain, or continue to employ or
retain, the Participant during the entire, or any portion of the, term of this
Agreement, including, but not limited to, any period during which the Restricted
Stock is outstanding, nor does it modify in any respect the Company’s or its
Affiliate’s right to terminate or modify the Participant’s terms of service or
compensation.

     

    7.           Power of
Attorney.  The Company, its
successors and assigns are hereby appointed the attorneys-in-fact, with full
power of substitution, of the Participant for the purpose of carrying out the
provisions of this Agreement and taking any action and executing any instruments
which such attorneys-in-fact may deem necessary or advisable to accomplish the
purposes of this Agreement, which appointment as attorneys-in-fact is
irrevocable and coupled with an interest.  The Company, as
attorney-in-fact for the Participant, may in the name and stead of the
Participant, make and execute all conveyances, assignments and transfers of the
Shares and property provided for in this Agreement, and the Participant hereby
ratifies and confirms all that the Company, as said attorney-in-fact, shall do
by virtue hereof.  Nevertheless, the Participant shall, if so
requested by the Company, execute and deliver to the Company all such
instruments as may, in the judgment of the Company, be advisable for such
purpose.

     

    8.           Rights as
a Stockholder.  The Participant shall have no rights as a
stockholder with respect to any Restricted Stock unless and until the
Participant has become the holder of record of the Shares, whether the Shares
are represented by a certificate or through book entry or another similar
method, and no adjustments shall be made for dividends in cash or other
property, distributions or other rights in respect of any Shares, except as
otherwise specifically provided for in the Plan or this Agreement.

     

    9.           Provisions
of Plan Control.  This Agreement is subject to all the terms,
conditions and provisions of the Plan, including, without limitation, the
amendment provisions thereof, and to such rules, regulations and interpretations
relating to the Plan as may be adopted by the Committee and as may be in effect
from time to time.  The Plan is incorporated herein by
reference.  Capitalized terms in this Agreement that are not otherwise
defined shall have the respective meanings set forth in the Plan.  If
and to the extent that this Agreement conflicts or is inconsistent with the
terms, conditions and provisions of the Plan, the Plan shall control, and this
Agreement shall be deemed to be modified accordingly.  This Agreement
contains the entire understanding of the parties with respect to the subject
matter hereof and supersedes any prior agreements between the Company and the
Participant with respect to the subject matter hereof.

     

    10.          Amendment.  To the extent
applicable, the Board or the Committee may at any time and from time to time
amend, in whole or in part, any or all of the provisions of this Agreement to
comply with Section 409A of the Code and the regulations thereunder or any other
applicable law and may also amend, suspend or terminate this Agreement subject
to the terms of the Plan.  The award of Restricted Stock pursuant to
this Agreement is not intended to be considered “deferred compensation” for the
purposes of Section 409A of the Code.

     

    11.          Notices.  Any notice or
communication given hereunder (each, a “Notice”) shall be in writing and shall
be sent by personal delivery, by courier or by regular United States mail, first
class and prepaid, to the appropriate party at the address set forth
below:

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    If to the
Company, to:

     

    Preferred
Apartment Communities, Inc.

    3625
Cumberland Boulevard, Suite 400

    Atlanta,
Georgia 30339

    Attention.:
General Counsel

    

    If to the
Participant, to the address of the Participant on file with the
Company;

     

    or such
other address or to the attention of such other person as a party shall have
specified by prior Notice to the other party.  Each Notice shall only
be given and effective upon actual receipt (or refusal of receipt).

     

    12.          Acceptance.  As required by
Section 8.2(b) of the Plan, the Participant shall forfeit the Restricted Stock
if the Participant does not execute this Agreement within a period of 60 days
from the date the Participant receives this Agreement (or such other period as
the Committee shall provide).

     

    13.          Waiver of
Jury Trial.  EACH OF THE
PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT
OR ANY COURSE OF CONDUCT, COURSE OF DEALING, VERBAL OR WRITTEN STATEMENT OR
ACTION OF ANY PARTY HERETO.

     

    14.          Miscellaneous.

     

    (a)           This
Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective heirs, legal representatives, successors and
assigns.

     

    (b)           All
questions concerning the construction, validity and interpretation of this Agreement
will be governed by, and construed in accordance with, the domestic laws of the State of
Maryland, without giving effect to any choice of law or conflict of law provision or
rule (whether of
the State of
Maryland or any other jurisdiction) that would cause the application
of the laws
of any
jurisdiction other than the State of
Maryland.

     

    (c)           In
the event of any dispute, controversy or claim between the Company or any
Affiliate and the Participant in any way concerning, arising out of or relating
to the Plan or this Agreement (a “Dispute”), including without limitation any
Dispute concerning, arising out of or relating to the interpretation,
application or enforcement of the Plan or this Agreement, the parties hereby (i)
agree and consent to the personal jurisdiction of the courts of the State of
Georgia located in Cobb County and/or the Federal courts of the United States of
America located in the Northern District of Georgia (collectively, the “Agreed
Venue”) for resolution of any such Dispute, (ii) agree that those courts in the
Agreed Venue, and only those courts, shall have exclusive jurisdiction to
determine any Dispute, including, without limitation, any appeal, and (iii)
agree that any cause of action arising out of this Agreement shall be deemed to
have arisen from a transaction of business in the State of
Georgia.  The parties also hereby irrevocably (A) submit to the
jurisdiction of any competent court in the Agreed Venue (and of the appropriate
appellate courts therefrom), (B) to the fullest extent permitted by law, waive
any and all defenses the parties may have on the grounds of lack of jurisdiction
of any such court and any other objection that such parties may now or hereafter
have to the laying of the venue of any such suit, action or proceeding in any
such court (including without limitation any defense that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient
forum), and (C) consent to service of process in any such suit, action or
proceeding, anywhere in the world, whether within or without the jurisdiction of
any such court, in any manner provided by applicable law.  Without
limiting the foregoing, each party agrees that service of process on such party
pursuant to a notice as provided in Section 11 shall be
deemed effective service of process on such party.  Any action for
enforcement or recognition of any judgment obtained in connection with a Dispute
may enforced in any competent court in the Agreed Venue or in any other court of
competent jurisdiction.

     

    
      
        
        

      

      
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    (d)           This
Agreement may be executed in one or more counterparts, all of which taken
together shall constitute one contract.

     

    (e)           The
failure of any party hereto at any time to require performance by another party
of any provision of this Agreement shall not affect the right of such party to
require performance of that provision, and any waiver by any party of any breach
of any provision of this Agreement shall not be construed as a waiver of any
continuing or succeeding breach of such provision, a waiver of the provision
itself, or a waiver of any right under this Agreement.

     

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

     

    
      
        
          
            
              
                	 
      	
                        PREFERRED
      APARTMENT COMMUNITIES,

                        INC.

                      
	 
      	 
      
	 
      	 
      	
                        By:

                      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                        Name:

                      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                        Title:

                      	 
      
	 
      	 
      
	
                        PARTICIPANT

                      	 
      
	 
      	 
      
	 
      	 
      	 
      
	
                        Signature

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