Document:

Exhibit

Exhibit 10.3
Execution Version

REGISTRATION RIGHTS AGREEMENT
This Registration Rights Agreement (this “Agreement”) is made and entered into as of June 27, 2017 by and among Selecta Biosciences, Inc., a Delaware corporation (the “Company”), and the “Investors” named in the: (i) Securities Purchase Agreement, dated June 26, 2017, by and among the Company and the Investors identified on Exhibit A attached thereto (the “Investors’ Purchase Agreement”) and (ii) Securities Purchase Agreement, dated June 26, 2017, between the Company and Timothy Springer, Ph.D. (the “Springer Purchase Agreement” and, together with the Investors’ Purchase Agreement, the “Purchase Agreements”).  Capitalized terms used herein have the respective meanings ascribed thereto in the Purchase Agreements unless otherwise defined herein.
The parties hereby agree as follows: 
1.Certain Definitions.

As used in this Agreement, the following terms shall have the following meanings: 
“Closing Date” has the meaning ascribed to it in the Investors’ Purchase Agreement and Springer Purchase Agreement, as applicable.
“Common Warrant Shares” has the meaning ascribed to it in the Springer Purchase Agreement.
“Investors” means the Investors identified in the Purchase Agreements and any Affiliate or permitted transferee of any such Investor who is a subsequent holder of Registrable Securities. 
“Prospectus” means (i) the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in such prospectus, and (ii) any “free writing prospectus” as defined in Rule 405 under the 1933 Act. 
“Register,” “registered” and “registration” refer to a registration made by preparing and filing a Registration Statement or similar document in compliance with the 1933 Act, and the declaration or ordering of effectiveness of such Registration Statement or document. 
“Registrable Securities” means (i) the Shares and Common Warrant Shares and (ii) any other shares of Common Stock issued as a dividend or other distribution with respect to, in exchange for or in replacement of the Shares or Common Warrant Shares; provided, however, that any such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of any, or file another, Registration Statement hereunder with respect thereto) upon the first to occur of (A) a Registration Statement with respect to the sale of such Registrable Securities being declared effective by the SEC under the 1933 Act and such Registrable Securities having been disposed of or transferred by the holder 

thereof in accordance with such effective Registration Statement, (B) such Registrable Securities having been previously sold or transferred in accordance with Rule 144 (or another exemption from the registration requirements of the 1933 Act) (C) such securities becoming eligible for resale without volume or manner-of-sale restrictions and without current public information requirements pursuant to Rule 144 and (D) the third anniversary of the Closing Date. 
“Registration Statement” means any registration statement of the Company under the 1933 Act that covers the resale of any of the Registrable Securities pursuant to the provisions of this Agreement, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and all material incorporated by reference in such Registration Statement. 
“Required Investors” means the Investors holding a majority of the Registrable Securities outstanding from time to time. 
“SEC” means the U.S. Securities and Exchange Commission.
“SEC Guidance” means (i) any publicly-available written or oral guidance of the SEC staff, or any comments, requirements or requests of the SEC staff and (ii) the 1933 Act.
“Shares” means the shares of Common Stock purchased by the Investors pursuant to the Purchase Agreements.
2.Registration. 

(a)Registration Statements.  

(i)Promptly following the Closing Date but no later than twenty (20) calendar days after the Closing Date (the “Filing Deadline”), the Company shall prepare and file with the SEC one Registration Statement covering the resale of all of the Registrable Securities which, for the avoidance of doubt, may also register the sale of primary securities.  Subject to any SEC comments, such Registration Statement shall include the plan of distribution, substantially in the form and substance, set forth in Part III of each Investor’s Selling Stockholder Notice and Questionnaire.  Such Registration Statement also shall cover, to the extent allowable under the 1933 Act and the rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to the Registrable Securities.    Upon request, such Registration Statement (and each amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided in accordance with Section 3(c) to the Investors prior to its filing or other submission.  If a Registration Statement covering the Registrable Securities is not filed with the SEC on or prior to the fifth Business Day following the Filing Deadline, the Company will make pro rata payments to each Investor, as liquidated damages and not as a penalty, in an amount equal to 1% of the aggregate amount paid pursuant to the Purchase Agreements by such Investor for such Registrable Securities then held by such Investor for each 30-day period or pro rata for any portion thereof following the Filing Deadline for which no Registration Statement is filed with respect to the Registrable Securities.  Such 

2

payments shall constitute the Investors’ exclusive monetary remedy for such events, but shall not affect the right of the Investors to seek injunctive relief.  Such payments shall be made to each Investor in cash no later than five (5) Business Days after the end of each 30-day period (the “Payment Date”).  Interest shall accrue at the rate of 1% per month on any such liquidated damages payments that shall not be paid by the Payment Date until such amount is paid in full.  Notwithstanding the foregoing, the Company will not be liable for any liquidated damages under this Section 2(a)(i) with respect to any Common Warrant Shares prior to their issuance.

(ii)The Company shall take reasonable best efforts to register the Registrable Securities on Form S-3 following the date such form is available for use by the Company, provided that if at such time the Registration Statement is on Form S-1, the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective by the SEC.

(b)Expenses.  The Company will pay all expenses associated with each Registration Statement, including filing and printing fees, the Company’s counsel and accounting fees and expenses, costs associated with clearing the Registrable Securities for sale under applicable state securities laws and listing fees, but excluding discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar securities industry professionals with respect to the Registrable Securities being sold. Except as provided in Section 6 hereof, the Company shall not be responsible for legal fees incurred by holders of Registrable Securities in connection with the performance of its rights and obligations under the Transaction Documents. 

(c)Effectiveness. 

(i)The Company shall use reasonable best efforts to have the Registration Statements declared effective as soon as practicable.  The Company shall notify the Investors by facsimile or e-mail as promptly as practicable, and in any event, within forty-eight (48) hours, after any Registration Statement is declared effective and shall simultaneously provide the Investors with access to a copy of any related Prospectus to be used in connection with the sale or other disposition of the securities covered thereby.  Subject to Section 2(d), if (A) a Registration Statement covering the Registrable Securities is not declared effective by the SEC prior to the earlier of (i) ten (10) Business Days after the SEC informs the Company that no review of such Registration Statement will be made or that the SEC has no further comments on such Registration Statement and (ii) the 60th day after the Closing Date (or the 90th day if the SEC reviews such Registration Statement) (the “Effectiveness Deadline”), or (B) after a Registration Statement has been declared effective by the SEC, sales cannot be made pursuant to such Registration Statement for any reason (including without limitation by reason of a stop order, or the Company’s failure to update such Registration Statement), but excluding any Allowed Delay (as defined below) or, if the Registration Statement is on Form S-1, for a period of twenty (20) days following the date on which the Company files a post-effective amendment to incorporate the Company’s Annual Report on Form 10-K (a “Maintenance Failure”), then the Company will make pro rata payments to each Investor then holding Registrable Securities, as liquidated damages and not as a penalty, in an amount equal to 1% of the aggregate amount paid 

3

pursuant to the Purchase Agreements by such Investor for such Registrable Securities then held by such Investor for each 30-day period or pro rata for any portion thereof following the date by which such Registration Statement should have been effective (the “Blackout Period”).  Such payments shall constitute the Investors’ exclusive monetary remedy for such events, but shall not affect the right of the Investors to seek injunctive relief.  The amounts payable as liquidated damages pursuant to this paragraph shall be paid no later than five (5) Business Days after each such 30-day period following the commencement of the Blackout Period until the termination of the Blackout Period (the “Blackout Period Payment Date”).  Such payments shall be made to each Investor in cash. Interest shall accrue at the rate of 1% per month on any such liquidated damages payments that shall not be paid by the Blackout Payment Date until such amount is paid in full.  Notwithstanding the foregoing, the Company will not be liable for any liquidated damages under this Section 2(c)(i) with respect to any Common Warrant Shares prior to their issuance.

(ii)Notwithstanding anything to the contrary contained herein, the Company may, upon written notice to any holder of Registrable Securities included in a Registration Statement, suspend the use of any Registration Statement, including any Prospectus that forms a part of a Registration Statement, if the Company (X) determines that it would be required to make disclosure of material information in the Registration Statement that the Company has a bona fide business purpose for preserving as confidential, (Y) the Company determines it must amend or supplement the Registration Statement or the related Prospectus so that such Registration Statement or Prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the case of the Prospectus in light of the circumstances under which they were made, not misleading or (Z) the Company has experienced or is experiencing some other material non-public event, including a pending transaction involving the Company, the disclosure of which at such time, in the good faith judgment of the Company, would adversely affect the Company; provided, however, in no event shall holders of Registrable Securities be suspended from selling Registrable Securities pursuant to the Registration Statement for a period that exceeds 30 consecutive Trading Days or 60 total Trading Days in any 360-day period (any such suspension contemplated by this Section 2(c)(ii), an “Allowed Delay”). Upon disclosure of such information or the termination of the condition described above, the Company shall provide prompt notice to holders whose Registrable Securities are included in the Registration Statement, and shall promptly terminate any suspension of sales it has put into effect and shall take such other reasonable actions to permit registered sales of Registrable Securities as contemplated hereby.

(d)Rule 415; Cutback.  If at any time the SEC takes the position that the offering of some or all of the Registrable Securities in a Registration Statement is not eligible to be made on a delayed or continuous basis under the provisions of Rule 415 under the 1933 Act (provided, however, the Company shall be obligated to use diligent efforts to advocate with the SEC for the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance and Disclosure Interpretation 612.09) or requires any Investor to be named as an “underwriter,” the Company shall (i) promptly notify each holder of Registrable Securities thereof and (ii) make reasonable best efforts to persuade the 

4

SEC that the offering contemplated by such Registration Statement is a valid secondary offering and not an offering “by or on behalf of the issuer” as defined in Rule 415 and that none of the Investors is an “underwriter.”  The Investors shall have the right to select one legal counsel designated by the holders of a majority of the Registrable Securities to review and oversee any registration or matters pursuant to this Section 2(d), including participation in any meetings or discussions with the SEC regarding the SEC’s position and to comment on any written submission made to the SEC with respect thereto.  No such written submission with respect to this matter shall be made to the SEC to which the Investors’ counsel reasonably objects.  In the event that, despite the Company’s reasonable best efforts and compliance with the terms of this Section 2(d), the SEC refuses to alter its position, the Company shall (i) remove from such Registration Statement such portion of the Registrable Securities (the “Cut Back Shares”) and/or (ii) agree to such restrictions and limitations on the registration and resale of the Registrable Securities as the SEC may require to assure the Company’s compliance with the requirements of Rule 415 (collectively, the “SEC Restrictions”); provided, however, that the Company shall not agree to name any Investor as an “underwriter” in such Registration Statement without the prior written consent of such Investor.  In the event of a cutback hereunder, the Company shall give the Investor at least five (5) Business Days prior written notice along with the calculations as to such Investor’s allotment.  Any cut-back imposed on the Investors pursuant to this Section 2(d) shall be allocated among the Investors on a pro rata basis and shall be applied first to any of the Registrable Securities of such Investor as such Investor shall designate, unless the SEC Restrictions otherwise require or provide or the Investors otherwise agree.  No liquidated damages shall accrue as to any Cut Back Shares until such date as the Company is able to effect the registration of such Cut Back Shares in accordance with any SEC Restrictions applicable to such Cut Back Shares (such date, the “Restriction Termination Date”).  In furtherance of the foregoing, each Investor shall provide the Company with prompt written notice of its sale of substantially all of the Registrable Securities under such Registration Statement such that the Company will be able to file one or more additional Registration Statements covering the Cut Back Shares. From and after the Restriction Termination Date applicable to any Cut Back Shares, all of the provisions of this Section 2 (including the Company’s obligations with respect to the filing of a Registration Statement and its obligations to use reasonable best efforts to have such Registration Statement declared effective within the time periods set forth herein and the liquidated damages provisions relating thereto) shall again be applicable to such Cut Back Shares; provided, however, that (i) the Filing Deadline for such Registration Statement including such Cut Back Shares shall be ten (10) Business Days after such Restriction Termination Date, and (ii) the date by which the Company is required to obtain effectiveness with respect to such Cut Back Shares shall be the 60th day immediately after the Restriction Termination Date (or the 90th day if the SEC reviews such Registration Statement).  

(e)Other Limitations.  Notwithstanding any other provision herein or in the Purchase Agreements, (i) the Filing Deadline and each Effectiveness Deadline for a Registration Statement shall be extended and any Maintenance Failure shall be automatically waived by no action of the Investors, in each case, without default by or liquidated damages payable by the Company hereunder in the event that the Company’s failure to make such filing or obtain such effectiveness or a Maintenance Failure results from the failure of an Investor to timely provide the Company with information requested by the Company and necessary to complete a 

5

Registration Statement in accordance with the requirements of the 1933 Act (in which case any such deadline would be extended, and a Maintenance Failure waived, with respect to all Registrable Securities until such time as the Investor provides such requested information) and (ii) in no event shall the aggregate amount of liquidated damages (or interest thereon) paid hereunder exceed, in the aggregate, 8% of the aggregate purchase price of the (A) Shares purchased by the Investors under the Investors’ Purchase Agreement or (B) Closing Securities purchased by Timothy Springer, Ph.D. under the Springer Purchase Agreement, as applicable.

3.Company Obligations.  The Company will use reasonable best efforts to effect the registration of the Registrable Securities in accordance with the terms hereof, and pursuant thereto the Company will, as expeditiously as possible: 

(a)use reasonable best efforts to cause such Registration Statement to become effective and to remain continuously effective until such time as there are no longer Registrable Securities held by the Investors (the “Effectiveness Period”) and advise the Investors promptly in writing when the Effectiveness Period has expired; 

(b)prepare and file with the SEC such amendments and post-effective amendments to such Registration Statement and the related Prospectus as may be necessary to keep such Registration Statement effective for the Effectiveness Period and to comply with the provisions of the 1933 Act and the 1934 Act with respect to the distribution of all of the Registrable Securities covered thereby; 

(c)permit, upon request, any counsel designated by the Investors to review each Registration Statement and all amendments and supplements thereto prior to their filing with the SEC; 

(d)furnish to each Investor whose Registrable Securities are included in any Registration Statement (i) promptly after the same is prepared and filed with the SEC, if requested by the Investor, one (1) copy of any Registration Statement and any amendment thereto, each preliminary prospectus and Prospectus and each amendment or supplement thereto, and each letter written by or on behalf of the Company to the SEC or the staff of the SEC, and each item of correspondence from the SEC or the staff of the SEC, in each case relating to such Registration Statement (other than any portion of any thereof which contains information for which the Company has sought confidential treatment), and (ii) such number of copies of a Prospectus, including a preliminary prospectus, and all amendments and supplements thereto and such other documents as each Investor may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Investor (it being understood and agreed that such documents, or access thereto, may be provided electronically); 

(e)use reasonable best efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness and, (ii) if such order is issued, obtain the withdrawal of any such order at the earliest possible moment;

6

(f)prior to any public offering of Registrable Securities, use reasonable best efforts to assist or cooperate with the Investors and their counsel in connection with their registration or qualification of such Registrable Securities for the offer and sale under the securities or blue sky laws of such jurisdictions reasonably requested by the Investors; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (i) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(f), (ii) subject itself to general taxation in any jurisdiction where it would not otherwise be so subject but for this Section 3(f), or (iii) file a general consent to service of process in any such jurisdiction; 

(g)use reasonable best efforts to cause all Registrable Securities covered by a Registration Statement to be listed on the NASDAQ Global Market (or the primary securities exchange, interdealer quotation system or other market on which the Common Stock then listed); 

(h)promptly notify the Investors, at any time prior to the end of the Effectiveness Period, upon discovery that, or upon the happening of any event as a result of which, the Prospectus includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and promptly prepare, file with the SEC and furnish to such holder a supplement to or an amendment of such Prospectus as may be necessary so that such Prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 

(i)otherwise use reasonable best efforts to comply with all applicable rules and regulations of the SEC under the 1933 Act and the 1934 Act, including, without limitation, Rule 172 under the 1933 Act, file any final Prospectus, including any supplement or amendment thereof, with the SEC pursuant to Rule 424 under the 1933 Act, promptly inform the Investors in writing if, at any time during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the Investors are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder; 
 
(j)with a view to making available to the Investors the benefits of Rule 144 (or its successor rule) and any other rule or regulation of the SEC that may at any time permit the Investors to sell shares of Common Stock to the public without registration, the Company covenants and agrees to: (i) make and keep public information available, as those terms are understood and defined in Rule 144, until the earlier of (A) six months after such date as all of the Registrable Securities may be sold without restriction by the holders thereof pursuant to Rule 144 or any other rule of similar effect or (B) such date as there are no longer Registrable Securities; (ii) file with the SEC in a timely manner all reports and other documents required of the Company under the 1934 Act; and (iii) furnish electronically to each Investor upon request, as long as such Investor owns any Registrable Securities, (A) a written statement by the Company that it has complied with the reporting requirements of the 1934 Act, (B) a copy of or 

7

electronic access to the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, and (C) such other information as may be reasonably requested in order to avail such Investor of any rule or regulation of the SEC that permits the selling of any such Registrable Securities without registration; and

(k) if requested by an Investor, cooperate with such Investor to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to an effective Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreements and applicable law, of all restrictive legends, and to enable such certificates to be in such denominations and registered in such names as any such Investor may request.

4.Due Diligence Review; Information.  If any Investor is required under applicable securities laws to be described in a Registration Statement as an “underwriter,” the Company shall, upon reasonable prior notice,  make available, during normal business hours, for inspection and review by the Investors, advisors to and representatives of the Investors (who may or may not be affiliated with the Investors and who are reasonably acceptable to the Company) (collectively, the “Inspectors”), all pertinent financial and other records, and all other corporate documents and properties of the Company (collectively, the “Records”) as may be reasonably necessary for the purpose of such review, and cause the Company’s officers, directors and employees, within a reasonable time period, to supply all such information reasonably requested by the Inspectors (including, without limitation, in response to all questions and other inquiries reasonably made or submitted by any of them), prior to and from time to time after the filing and effectiveness of such Registration Statement for the sole purpose of enabling such Investor and its accountants and attorneys to conduct such due diligence solely for the purpose of establishing a due diligence defense to underwriter liability under the 1933 Act; provided, however, that each Inspector shall agree to hold in strict confidence and shall not make any disclosure (except to such Investor) or use of any Record or other information which the Company determines in good faith to be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the 1933 Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than by disclosure in violation of this or the Purchase Agreements. Each Investor agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the Company and any Investor) shall be deemed to limit the Investors’ ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations.

Notwithstanding the foregoing, the Company shall not disclose material nonpublic information to the Investors, or to advisors to or representatives of the Investors, unless prior to 

8

disclosure of such information the Company identifies such information as being material nonpublic information and provides the Investors, such advisors and representatives with the opportunity to accept or refuse to accept such material nonpublic information for review and any Investor wishing to obtain such information enters into an appropriate confidentiality agreement with the Company with respect thereto. 
5.Obligations of the Investors.  

(a)Each Investor shall execute and deliver a Selling Stockholder Questionnaire prior to the Closing Date. Each Investor shall additionally furnish in writing to the Company such other information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request.  At least five (5) Business Days prior to the first anticipated filing date of any Registration Statement, the Company shall notify each Investor of the additional information the Company requires from such Investor if such Investor elects to have any of the Registrable Securities included in such Registration Statement (the “Registration Information Notice”).  An Investor shall provide such information to the Company no later than two (2) Business Days following receipt of a Registration Information Notice if such Investor elects to have any of the Registrable Securities included in such Registration Statement. It is agreed and understood that it shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities of a particular Investor that (i) such Investor furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect the effectiveness of the registration of such Registrable Securities, and (ii) the Investor execute such documents in connection with such registration as the Company may reasonably request, including, without limitation, a waiver of its registration rights hereunder to the extent an Investor elects not to have any of its Registrable Securities included in a Registration Statement.

(b)Each Investor, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of a Registration Statement hereunder, unless such Investor has notified the Company in writing of its election to exclude all of its Registrable Securities from such Registration Statement. 

(c)Each Investor agrees that, upon receipt of any notice from the Company of either (i) the commencement of an Allowed Delay pursuant to Section 2(c)(ii) or (ii) the happening of an event pursuant to Section 3(h) hereof, such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement covering such Registrable Securities, until the Investor is advised by the Company that such dispositions may again be made.

9

(d)Each Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to any Registration Statement.

6.Indemnification.

(a)Indemnification by the Company.  The Company will indemnify and hold harmless each Investor and its officers, directors, members, employees and agents, successors and assigns, and each other person, if any, who controls such Investor within the meaning of the 1933 Act, against any losses, claims, damages or liabilities, joint or several, to which they may become subject under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement or omission or alleged omission of any material fact contained in any Registration Statement, any preliminary Prospectus or final Prospectus, or any amendment or supplement thereof; provided, however, that the Company will not be liable in any such case if and to the extent that any such loss, claim, damage or liability arises out of or is based upon (i) an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by such Investor or any such controlling person in writing specifically for use in such Registration Statement or Prospectus, (ii) the use by an Investor of an outdated or defective Prospectus after the Company has notified such Investor in writing that such Prospectus is outdated or defective or (iii) an Investor’s failure to send or give a copy of the Prospectus or supplement (as then amended or supplemented), if required (and not exempted) to the Persons asserting an untrue statement or omission or alleged untrue statement or omission at or prior to the written confirmation of the sale of Registrable Securities.

(b)Indemnification by the Investors.  Each Investor agrees, severally but not jointly, to indemnify and hold harmless, to the fullest extent permitted by law, the Company, its directors, officers, employees, stockholders and each person who controls the Company (within the meaning of the 1933 Act) against any losses, claims, damages, liabilities and expense (including reasonable attorney fees) resulting from any untrue statement of a material fact or any omission of a material fact required to be stated in any Registration Statement or Prospectus or preliminary Prospectus or amendment or supplement thereto or necessary to make the statements therein not misleading, to the extent, but only to the extent, that such untrue statement or omission is contained in any information regarding such Investor and furnished in writing by such Investor to the Company specifically for inclusion in such Registration Statement or Prospectus or amendment or supplement thereto.  In no event shall the liability of an Investor be greater than the dollar amount of the proceeds  received by such Investor upon the sale of the Registrable Securities included in such Registration Statement giving rise to such indemnification obligation. 

(c)Conduct of Indemnification Proceedings.  Any person entitled to indemnification hereunder shall (i) give prompt notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided, that any person entitled to indemnification hereunder shall have the right to employ 

10

separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such person unless (A) the indemnifying party has agreed to pay such fees or expenses, (B) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory to such person or (C) in the reasonable judgment of any such person, based upon written advice of its counsel, a conflict of interest exists between such person and the indemnifying party with respect to such claims (in which case, if the person notifies the indemnifying party in writing that such person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such person); and provided, further that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations hereunder, except to the extent that such failure to give notice shall materially adversely affect the indemnifying party in the defense of any such claim or litigation.  It is understood that the indemnifying party shall not, in connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys at any time for all such indemnified parties.  No indemnifying party will, except with the consent of the indemnified party, which shall not be unreasonably withheld or conditioned, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation. 

(d)Contribution.  If for any reason the indemnification provided for in the preceding paragraphs (a) and (b) is unavailable to an indemnified party or insufficient to hold it harmless, other than as expressly specified therein, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations.  No person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the 1933 Act shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation.  In no event shall the contribution obligation of a holder of Registrable Securities be greater in amount than the dollar amount of the proceeds  received by it upon the sale of the Registrable Securities giving rise to such contribution obligation. 

7.Miscellaneous.

(a)Amendments and Waivers.  This Agreement may be amended only by a writing signed by the Company and the Required Investors.  The Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company shall have obtained the written consent to such amendment, action or omission to act, of the Required Investors. 

(b)Notices.  All notices and other communications provided for or permitted hereunder shall be made as set forth in Section 9.4 of the Purchase Agreements. 

(c)Assignments and Transfers by Investors.  The provisions of this Agreement shall be binding upon and inure to the benefit of the Investors and their respective 

11

successors and assigns.  An Investor may transfer or assign, in whole or from time to time in part, to one or more persons its rights hereunder in connection with the transfer of Registrable Securities by such Investor to such person, provided that (i) the Investor agrees in writing with the transferee or assignee to assign such rights and a copy of such agreement is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (A) the name and address of such transferee or assignee and (B) the securities with respect to which such registration rights are being transferred or assigned; (iii) immediately following such transfer or assignment the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act or applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein; (v) such transfer shall have been made in accordance with the applicable requirements of each of the Purchase Agreements and (vi) unless the transferee or assignee is an Affiliate of, and after such transfer or assignment continues to be an Affiliate of, such Investor, the amount of Registrable Securities transferred or assigned to such transferee or assignee represents at least $5.0 million of Registrable Securities (based on the then-current market price of the Common Stock).

(d)Assignments and Transfers by the Company.  This Agreement may not be assigned by the Company (whether by operation of law or otherwise) without the prior written consent of the Required Investors, provided, however, that in the event that the Company is a party to a merger, consolidation, share exchange or similar business combination transaction in which the Common Stock is converted into the equity securities of another Person, from and after the effective time of such transaction, such Person shall, by virtue of such transaction, be deemed to have assumed the obligations of the Company hereunder, the term “Company” shall be deemed to refer to such Person and the term “Registrable Securities” shall be deemed to include the securities received by the Investors in connection with such transaction unless such securities are otherwise freely tradable by the Investors after giving effect to such transaction. 
                                                                                                                                                                                                                                                                                                       
(e)Benefits of the Agreement.  The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 

(f)Counterparts; Faxes.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  This Agreement may also be executed via facsimile or e-mail, which shall be deemed an original. 

(g)Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 

12

(h)Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the extent permitted by applicable law, the parties hereby waive any provision of law which renders any provisions hereof prohibited or unenforceable in any respect. 

(i)Further Assurances.  The parties shall execute and deliver all such further instruments and documents and take all such other actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained. 

(j)Entire Agreement.  This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein.  This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter. 

(k)Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.  This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of New York without regard to the choice of law principles thereof (other than sections 5-1401 and 5-1402 of the General Obligations Law).  Each of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United States District Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby.  Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement.  Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court.  Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

(l)Filing Restrictions.  The Company will register the resale of Registrable Securities representing Cut Back Shares on an effective Registration Statement prior to or concurrent with registering the resale of its securities by a selling security holder not holding Registrable Securities; provided, however, that this Section 7(l) shall not apply to Registrable Securities representing Cut Back Shares that were excluded from any such Registration 

13

Statement on account of the failure of a holder of such Registrable Securities to comply with the provisions hereof, including, but not limited to, the requirement of a holder to provide information required to be included in a Registration Statement.

(m)Independent Nature of Investors’ Obligations and Rights.  The obligations of each Investor hereunder are several and not joint with the obligations of any other Investor hereunder, and no Investor shall be responsible in any way for the performance of the obligations of any other Holder hereunder.  Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters, and the Company acknowledges that the Investors are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or transactions. Each Investor shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. The use of a single agreement with respect to the obligations of the Company contained was solely in the control of the Company, not the action or decision of any Investor, and was done solely for the convenience of the Company and not because it was required or requested to do so by any Holder.  It is expressly understood and agreed that each provision contained in this Agreement is between the Company and an Investor, solely, and not between the Company and the Investors collectively and not between and among Investor.

[remainder of page intentionally left blank]

14

Exhibit 10.3
Execution Version

IN WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written. 
	
			
	COMPANY:
	SELECTA BIOSCIENCES, INC.

	 
	By:
	/s/ David Abraham

	 
	 
	Name:   David Abraham

	 
	 
	Title: General Counsel, CCO, C.S.

[Signature Page to Registration Rights Agreement]

	
			
	INVESTOR:  Vivo Capital Fund VIII, L.P.
	 

	 
	By:
	  /s/  Frank Kung

	 
	 
	Name:  Frank Kung

	 
	 
	Title:  Managing Partner

[Signature Page to Registration Rights Agreement]

	
			
	INVESTOR:  Vivo Capital Surplus Fund VIII, L.P.
	 

	 
	By:
	  /s/ Frank Kung

	 
	 
	Name:  Frank Kung

	 
	 
	Title:  Managing Partner

[Signature Page to Registration Rights Agreement]

	
			
	INVESTOR:  BIOMEDICAL OFFSHORE VALUE FUND, LTD.
	 

	 
	By:
	  /s/ David Kroin

	 
	 
	Name:  DAVID KROIN

	 
	 
	Title:  MANAGING DIRECTOR OF GREAT POINT PARTNERS, LLC

(the Investment Manager)

[Signature Page to Registration Rights Agreement]

	
			
	INVESTOR:  BIOMEDICAL VALUE FUND, L.P.
	 

	 
	By:
	  /s/ David Kroin

	 
	 
	Name:  DAVID KROIN

	 
	 
	Title:  MANAGING DIRECTOR OF GREAT POINT PARTNERS, LLC

(the Investment Manager)

[Signature Page to Registration Rights Agreement]

	
			
	INVESTOR:  Perceptive Life Sciences Master Fund, Ltd.
	 

	 
	By:
	  /s/ James Mannix

	 
	 
	Name:  James Mannix

	 
	 
	Title:  COO

[Signature Page to Registration Rights Agreement]

	
			
	INVESTOR:  Amzak Health Investors LLC
	 

	 
	By:
	  /s/ Michael Kazma

	 
	 
	Name:  Michael Kazma

	 
	 
	Title:  Manager

[Signature Page to Registration Rights Agreement]

	
			
	INVESTOR:  CLASS D SERIES OF GEF-PS, L.P.
	 

	 
	By:
	  /s/ David Kroin

	 
	 
	Name:  DAVID KROIN

	 
	 
	Title:  MANAGING DIRECTOR OF GREAT POINT PARTNERS, LLC

(the Investment Manager)

[Signature Page to Registration Rights Agreement]

	
			
	INVESTOR:  GEF-SMA, L.P.
	 

	 
	By:
	  /s/ David Kroin

	 
	 
	Name:  DAVID KROIN

	 
	 
	Title:  MANAGING DIRECTOR OF GREAT POINT PARTNERS, LLC

(the Investment Manager)

[Signature Page to Registration Rights Agreement]

	
			
	INVESTOR:
	 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:  

	
			
	By:  Baker Bros. Advisors LP, Management Company and Investment Adviser to 667, L.P., pursuant to authority granted to it by Baker Biotech Capital, L.P., general partner to 667, L.P., and not as the general partner

/s/ Scott L. Lessing
By:  Scott L. Lessing, President
	 
	By:  Baker Bros. Advisors LP, Management Company and Investment Adviser to BAKER BROTHERS LIFE SCIENCES, L.P., pursuant to authority granted to it by Baker Brothers Life Sciences Capital, L.P., general partner to BAKER BROTHERS LIFE SCIENCES, L.P., and not as the general partner

/s/ Scott L. Lessing
By:  Scott L. Lessing, President

[Signature Page to Registration Rights Agreement]

	
			
	INVESTOR:  
	 

	 
	By:
	  /s/ Timothy A. Springer

	 
	 
	Name:  TIMOTHY A. SPRINGER

	 
	 
	Title:  

[Signature Page to Registration Rights Agreement]EX-10.7

 AGREEMENT OF PURCHASE AND SALE 

BY AND BETWEEN 
 MREI III
BAY CLUB, LLC 
 as Seller 

and 
 RESOURCE APARTMENT
OP III, LP 
 as Purchaser 

Dated: June 12, 2017 
 Bay Club
Apartments 
 Duval County, Florida 

 AGREEMENT OF PURCHASE AND SALE 

This AGREEMENT OF PURCHASE AND SALE (this “Agreement”), is made and entered into this
            day of June, 2017 (the “Effective Date”), by and between MREI III BAY CLUB, LLC, a Delaware limited liability company
(“Seller”), and RESOURCE APARTMENT OP III, LP, a Delaware limited partnership (“Purchaser”). 

ARTICLE I. 
 SALE AND
PURCHASE OF THE PROPERTY 
 1.01 Agreement to Sell and Convey. Seller hereby agrees to sell and convey to Purchaser, and
Purchaser hereby agrees to purchase from Seller, subject to the terms and conditions hereinafter set forth: (a) that certain land lying and being situated in Duval County, Florida, and being described on Exhibit A attached hereto
and made a part hereof for all purposes together with all of Seller’s right, title and interest, if any, in and to any and all rights, benefits, privileges, easements, tenements and appurtenances thereon and pertaining thereto, including all of
Seller’s right, title and interest, if any, in and to adjacent streets, roads, alleys, easements and rights-of-way (the “Land”), (b) all of the buildings and improvements located on the Land (collectively,
the “Improvements”), (c) all of Seller’s assignable and transferable right, title and interest in and to all unexpired leases and each amendment, renewal, expansion and extension thereof, subleases, occupancy
agreements, licenses and any other agreements for the use, possession or occupancy of the Land or the Improvements as of the Closing Date (as hereinafter defined), together with any refundable security, deposits of tenants thereunder which are in
Seller’s possession as of the Closing Date (collectively, the “Leases”), (d) all of Seller’s right, title, interest and obligation in and to any and all service, supply, maintenance and other similar
operating contracts that affect the Land or the Improvements (the “Service Contracts”), and which are in effect on the Closing Date, excluding any “national contracts” and Terminable Service Contracts (as
defined in Section 4.03(e) hereof), and which are in effect on the Closing Date (collectively, the “Assumed Contracts”), (e) all of Seller’s right, title and interest, if any, in and to any
furniture, fixtures, equipment, interior appliances, machines, apparatus, supplies and tangible personal property of every nature and description and all replacements thereof owned by Seller, if any, and located in or on the Land or the
Improvements, including, but not limited to, the items listed as “Included Inventory” on Exhibit E attached hereto but specifically excluding the items listed as “Excluded
Inventory” on Exhibit E attached hereto (the “Tangible Property”), and (f) to the extent transferable without the consent of third parties, all of Seller’s right, title and
interest, if any, in and to the intangible property that is owned by Seller and appurtenant to the ownership, operation, maintenance, and use of the Land and the Improvements including, without limitation, all of the rights of Seller to the
following to the extent that they are specific to the Property and no other real property (i) the use of the name “Bay Club” and any other trade names, trademarks, logos and symbols associated with or used in connection with the
Property, (ii) telephone and facsimile numbers owned or maintained by or on behalf of Seller with respect to the Property, (iii) all web addresses, domain names and URLs as well as all social media accounts and logo, photo, video and
e-brochure files with respect to the Property and (vi) any guaranties, warranties or miscellaneous transferable rights related to the Property, without warranty as to exclusivity or otherwise (the “Intangible
Property”) (the Tangible Property and the Intangible Property are collectively referred to herein as the “Personal  

  
 1 

 
Property”). The Land, the Improvements, the Leases, the Assumed Contracts, and the Personal Property are collectively called the “Property”. Notwithstanding
the foregoing, the term “Property” shall not include any of the following: (i) all cash held in any depository accounts in the name of Seller, its manager or its lenders (except for refundable security, deposits to the
extent provided herein), (ii) all appraisals or other economic evaluations of, or projections with respect to all or any portion of the Property, (iii) all information and documentation relating to the acquisition cost of the Property,
(iv) all insurance policies related to the Property, (v) the management agreement between Seller and Milestone Management, LLC or an affiliate thereof (“Manager”) and all amounts received or receivable from Manager
under such contract (the “Management Agreement”), (vi) items of personal property owned by Seller or Manager and used in connection with the Property as part of the integrated systems of ownership, management and/or
operations of apartment projects, such as, by way of example and without limitation, the computer software for the key track system, all software related to the computer and phone systems, toll free telephone numbers, other software, corporate
licenses, and management and financial reporting systems and software, (vii) any property owned by Manager, (viii) utility deposits, (ix) non-refundable resident fees and deposits, and (x) lump sum payments received under
contracts or leases (not including resident leases). 
 1.02 Purchase Price. The purchase price (the “Purchase
Price”) to be paid by Purchaser for the Property shall be $28,300,000.00. The Purchase Price shall be paid by delivery of immediately available funds to the Title Company (as hereinafter defined) on or before the Closing Date. 

1.03 Earnest Money Deposit. For the purpose of securing the performance of Purchaser under this Agreement, within three
(3) Business Days (as hereafter defined) following the Effective Date, Purchaser shall deliver to Republic Title of Texas, Inc., 2626 Howell Street, 10th Floor, Dallas, Texas 75204, Attn: Bo
Feagin (the “Title Company”), an earnest money deposit in the amount of $1,000,000.00 (together with all interest accrued thereon, the “Escrow Deposit”), all of which shall be immediately
non-refundable to Purchaser unless Purchaser terminates this Agreement pursuant to Section 1.04(f), Section 4.01(e), Section 5.01, Section 5.02 and Section 6.01 below. The Escrow Deposit
shall be invested by the Title Company in an interest bearing account at the direction of Purchaser, and all interest earned with respect thereto shall be added to the Escrow Deposit. The Escrow Deposit shall be held and disbursed by the Title
Company in accordance with the terms of this Agreement. At the Closing, the Escrow Deposit shall be applied to the Purchase Price. If the Escrow Deposit is not delivered to the Title Company within three (3) Business Days following the
Effective Date, Seller shall have the right to terminate this Agreement by written notice delivered to Purchaser and upon any such termination, this Agreement shall be of no further force or effect. 

1.04 Inspection Period. 

a. Purchaser shall have until the date which is twenty-one (21) days after the Effective Date (the “Inspection
Period”) within which to make all inspections, tests and investigations desired by Purchaser with respect to the Property. If, within the Inspection Period, Purchaser determines that it does not desire to purchase the Property
for any reason, Purchaser shall have the right to terminate this Agreement by written notice delivered to Seller and the Title Company prior to 5:00 p.m. Dallas, Texas time on the final day of the Inspection Period and

  
 2 

 
upon any such termination, the Escrow Deposit shall be delivered to Seller and this Agreement shall be of no further force and effect, except for the obligations that expressly survive the
termination of this Agreement. If Purchaser fails to deliver written notice of the termination of this Agreement to Seller and the Title Company prior to 5:00 p.m. Dallas, Texas time on the final day of the Inspection Period, then Purchaser shall
have no further right to terminate this Agreement pursuant to this Section 1.04(a). If this Agreement terminates for any reason, Purchaser shall promptly at Seller’s direction either deliver to Seller or destroy all Property
Information (as hereinafter defined) and copies thereof. Additionally, if this Agreement terminates for any reason other than as a result of a Seller’s default, Purchaser shall deliver to Seller copies of all final written reports received by
Purchaser and prepared by third parties for Purchaser in connection with its due diligence review of the Property, other than economic analyses (collectively, the “Reports”). The Reports shall be delivered to Seller without
any representation or warranty as to the completeness, accuracy or any other matter set forth therein. Seller shall have no right to use or rely on the Reports without the express written consent of the preparer of such Report. Purchaser’s
obligation to deliver the Property Information and the Reports to Seller shall survive any termination of this Agreement. 
 b. Purchaser
and its agents, representatives and consultants shall be entitled to enter upon the Property for customary non-intrusive and non-invasive inspections, testing and examinations prior to the Closing upon not less than forty-eight (48) hours prior
notice to Seller and subject to the rights of the tenants under the Leases and otherwise subject to all Permitted Exceptions (hereinafter defined) and applicable laws. Without limitation of the foregoing, Purchaser shall have the right to inspect
the Leases and the files related thereto at the Property upon not less than forty-eight (48) hours prior notice to Seller. Purchaser must obtain Seller’s prior written approval of the scope and method of any environmental testing or
investigation (other than a Phase I environmental inspection) and for any inspection which would alter the physical condition of the Property, prior to Purchaser’s commencement of such inspections, testing or examination. Prior to entry upon
the Property, Purchaser shall obtain and deliver to Seller a certificate of insurance naming Seller, Manager and Seller’s lender as additional insureds, designating the Property as the applicable location, and evidencing liability insurance
coverage with combined single limits of not less than $2,000,000.00. Purchaser shall not interfere with the tenants under the Leases in connection with any such entry onto the Property. Purchaser agrees to indemnify Seller, Manager and Seller’s
lender and each of their respective agents, employees, contractors, members, officers and directors, and each of their respective successors and assigns (collectively, the “Seller Indemnity Parties”), and to hold and
defend each of the Seller Indemnity Parties harmless from and against any and all causes of action, claims, damages, demands, liabilities, losses, costs and expenses including, without limitation, attorney fees and court costs, which are asserted
against, suffered or incurred by any of the Seller Indemnity Parties as a result of the exercise by Purchaser of its rights under Section 1.04(b) of this Agreement, including without limitation (a) any failure to comply with the
terms of this Section 1.04(b) by Purchaser or any of Purchaser’s agents, employees, representatives, consultants or contractors (collectively, “Purchaser’s Representatives”), and (b) any
injury to or death of persons, or damage to or loss of property, caused by Purchaser or Purchaser’s Representatives in connection with the exercise by Purchaser of its rights pursuant to this Section 1.04(b); provided, however,
Purchaser shall not be obligated to indemnify the Seller Indemnity Parties with respect to the mere discovery by Purchaser of any conditions on the Property (as 

  
 3 

 
long as no acts or omission of Purchaser or any of Purchaser’s Representatives exacerbates such condition) or with respect to any action, cause of action, claim, damage, liability, loss,
cost or expense arising from the gross negligence or willful misconduct of any of the Seller Indemnity Parties. EXCEPT AS SPECIFICALLY PROVIDED IN THIS SECTION 1.04(b), THE INDEMNITY PROVISIONS OF THIS SECTION 1.04(b) SHALL BE
APPLICABLE REGARDLESS OF WHETHER OR NOT ANY ACTION, CAUSE OF ACTION, CLAIM, DAMAGE, LIABILITY, LOSS, COST OR EXPENSE WAS CAUSED IN WHOLE OR IN PART BY THE SOLE OR CONCURRENT NEGLIGENT ACT OR OMISSION OF ANY SELLER INDEMNITY PARTY. Purchaser
further agrees that it shall be solely responsible for any and all costs associated with the inspections described in this Section 1.04(b) and agrees to immediately discharge any liens that are filed against the Property as a result of
such inspections. Immediately following each such inspection, Purchaser shall restore the Property to substantially the same condition as existed prior to such inspections. The obligations of Purchaser under this Section 1.04(b) shall
survive the Closing and any termination of this Agreement. 
 c. PURCHASER ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY PROVIDED IN AND
LIMITED BY SECTION 4.01 BELOW AND IN THE DOCUMENTS DELIVERED BY SELLER AT CLOSING (THE “CLOSING DOCUMENTS”), SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES
(OTHER THAN THE SPECIAL WARRANTY OF TITLE SET FORTH IN THE DEED, AS DEFINED BELOW), PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, EITHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO,
CONCERNING OR WITH RESPECT TO (A) THE VALUE, NATURE, QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY, (B) THE INCOME TO BE DERIVED FROM THE PROPERTY, (C) THE SUITABILITY OF THE PROPERTY
FOR ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER OR ANY TENANT MAY CONDUCT THEREON, (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY,
(E) THE HABITABILITY, SUITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, (F) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTY,
(G)THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY, (H) COMPLIANCE WITH ANY ENVIRONMENTAL LAWS (HEREINAFTER DEFINED) OR ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS,
INCLUDING THE EXISTENCE IN OR ON THE PROPERTY OF HAZARDOUS MATERIALS (HEREINAFTER DEFINED), (I) THE PROPERTY INFORMATION (HEREINAFTER DEFINED), OR (J) ANY OTHER MATTER WITH RESPECT TO THE PROPERTY. ADDITIONALLY, NO PERSON OR ENTITY ACTING
ON BEHALF OF SELLER IS AUTHORIZED TO MAKE, AND BY PURCHASER’S EXECUTION HEREOF, PURCHASER ACKNOWLEDGES THAT NO PERSON OR ENTITY HAS MADE ANY REPRESENTATION, AGREEMENT, STATEMENT, 

  
 4 

 
WARRANTY, GUARANTY OR PROMISE REGARDING THE PROPERTY OR THE TRANSACTION CONTEMPLATED HEREIN, EXCEPT AS EXPRESSLY PROVIDED IN AND LIMITED BY SECTION 4.01 BELOW AND THE CLOSING DOCUMENTS; AND NO
SUCH REPRESENTATION, WARRANTY, AGREEMENT, GUARANTY, STATEMENT OR PROMISE, IF ANY, MADE BY ANY PERSON OR ENTITY ACTING ON BEHALF OF SELLER SHALL BE VALID OR BINDING UPON SELLER, EXCEPT AS EXPRESSLY PROVIDED IN AND LIMITED BY SECTION 4.01 BELOW AND
THE CLOSING DOCUMENTS. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY, PURCHASER IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT ON ANY INFORMATION PROVIDED OR TO BE
PROVIDED BY SELLER OTHER THAN THE INFORMATION PROVIDED IN SECTION 4.01. BY ITS ACCEPTANCE OF THE DEED AT THE CLOSING, PURCHASER SHALL, WITHOUT THE EXECUTION OF ANY ADDITIONAL DOCUMENT, WAIVE AND RELEASE ALL OBJECTIONS, SUITS, CAUSES OF ACTION,
DAMAGES, LIABILITIES, LOSSES, DEMANDS, PROCEEDINGS, EXPENSES AND CLAIMS AGAINST SELLER (INCLUDING, BUT NOT LIMITED TO, ANY RIGHT OR CLAIM OF CONTRIBUTION) ARISING FROM OR RELATED TO THE PROPERTY INCLUDING, WITHOUT LIMITATION, ANY CLAIM WITH RESPECT
TO ANY HAZARDOUS MATERIALS ON OR BENEATH THE PROPERTY EXCEPT FOR CLAIMS PERMITTED PURSUANT TO SECTION 4.01(g). PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT ANY INFORMATION PROVIDED OR TO BE PROVIDED WITH RESPECT TO THE PROPERTY WAS OBTAINED FROM A
VARIETY OF SOURCES AND THAT SELLER HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND MAKES NO REPRESENTATIONS AS TO THE ACCURACY, TRUTHFULNESS OR COMPLETENESS OF SUCH INFORMATION, EXCEPT AS EXPRESSLY PROVIDED IN AND
LIMITED BY SECTION 4.01 BELOW AND THE CLOSING DOCUMENTS. EXCEPT AS EXPRESSLY PROVIDED IN AND LIMITED BY SECTION 4.01 BELOW AND THE CLOSING DOCUMENTS, SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR WRITTEN STATEMENT, REPRESENTATION OR
INFORMATION PERTAINING TO THE PROPERTY, OR THE OPERATION THEREOF, FURNISHED BY ANY REAL ESTATE BROKER, CONTRACTOR, AGENT, EMPLOYEE, SERVANT OR OTHER PERSON OR ENTITY. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT TO THE MAXIMUM EXTENT PERMITTED BY
LAW, THE SALE OF THE PROPERTY AS PROVIDED FOR HEREIN IS MADE ON AN “AS IS, WHERE IS” CONDITION AND BASIS WITH ALL FAULTS AND DEFECTS, EXCEPT AS EXPRESSLY PROVIDED IN AND LIMITED BY SECTION 4.01 BELOW AND THE CLOSING DOCUMENTS. IT IS
UNDERSTOOD AND AGREED THAT THE PURCHASE PRICE FOR THE PROPERTY HAS BEEN ADJUSTED BY PRIOR NEGOTIATION TO REFLECT THAT ALL OF THE PROPERTY IS SOLD BY SELLER AND PURCHASED BY PURCHASER SUBJECT TO THE FOREGOING. PURCHASER HEREBY AGREES TO INDEMNIFY,
PROTECT, DEFEND, SAVE AND HOLD HARMLESS THE SELLER INDEMNITY PARTIES FROM AND AGAINST ANY AND ALL DEBTS, DUTIES, OBLIGATIONS, LIABILITIES, SUITS, CLAIMS, DEMANDS, CAUSES OF ACTION, DAMAGES, LOSSES, FEES AND EXPENSES (INCLUDING, WITHOUT LIMITATION,
ATTORNEYS’ FEES AND EXPENSES AND COURT COSTS) IN 

  
 5 

 ANY WAY RELATING TO, OR IN CONNECTION WITH OR ARISING OUT OF PURCHASER’S ACQUISITION, OWNERSHIP, LEASING,
USE, OPERATION, MAINTENANCE OR MANAGEMENT OF THE PROPERTY. THE PROVISIONS OF THIS SECTION 1.04(C) SHALL SURVIVE THE CLOSING AND ANY TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION 1.04(C) ARE AN IMPORTANT BASIS OF THE
BARGAIN INDUCING SELLER TO CONVEY THE PROPERTY. 
 For the purposes of this Agreement, “Environmental Law” means any
legal requirement in effect at the Closing Date pertaining to (a) the protection of health, safety, and the indoor or outdoor environment, (b) the conservation, management, protection or use of natural resources and wildlife, (c) the
protection or use of source water and groundwater, (d) the management, manufacture, possession, presence, use, generation, transportation, treatment, storage, disposal, release, threatened release, abatement, removal, remediation or handling
of, or exposure to, any Hazardous Material or (e) pollution (including any release to air, land, surface water, and groundwater); and includes, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 USC §§9601 et seq., Solid Waste Disposal Act, as amended by the Resource Conservation Act of 1976 and Hazardous and Solid Waste
Amendments of 1984, 42 USC §§6901 et seq., Federal Water Pollution Control Act, as amended by the Clean Water Act of 1977, 33 USC §§1251 et seq., Clean Air Act of 1966, as amended,
42 USC §§7401 et seq., Toxic Substances Control Act of 1976, 15 USC §§2601 et seq., Hazardous Materials Transportation Act, 49 USC App. §§1801, Occupational
Safety and Health Act of 1970, as amended, 29 USC §§651 et seq., Oil Pollution Act of 1990, 33 USC §§2701 et seq., Emergency Planning and Community Right-to-Know Act of 1986,
42 USC App. §§11001 et seq., National Environmental Policy Act of 1969, 42 USC §§4321 et seq., Safe Drinking Water Act of 1974, as amended by 42 USC §§300(f)
et seq., and any similar, implementing or successor law, any amendment, rule, regulation, order or directive, issued thereunder. 

For the purposes of this Agreement, “Hazardous Material” means any hazardous or toxic substance as defined in or
regulated by any Environmental Law in effect at the pertinent date or dates. 
 d. Notwithstanding anything contained herein to the
contrary, if Purchaser elects to terminate this Agreement for any reason and is entitled to receive a refund of any portion of the Escrow Deposit pursuant to the terms hereof, the Title Company shall first disburse to Seller the sum of one hundred
dollars ($100.00) as independent consideration for Seller’s performance under this Agreement, which sum shall be retained by Seller in all instances. 

e. Within three (3) Business Days after the Effective Date, Seller shall deliver to Purchaser or make available at the Property (to the
extent in Seller’s possession) the following items (the “Property Information”): 
 (i) A copy of the
most recent rent roll for the Property, which is attached hereto as Exhibit G (the “Rent Roll”) 

(ii) Copies of the Service Contracts; and 

  
 6 

 (iii) Copies of the items listed on Exhibit F for the time periods indicated thereon.

 f. Purchaser has obtained from Seller the following (together, “Existing Title”): (i) a title commitment
issued by the Title Company on April 27, 2017 for the Property, accompanied by copies of all recorded documents listed on such title commitment (collectively the “Title Commitment”) and (ii) Seller’s existing
boundary survey of the Property dated October 22, 2010 and updated on August 9, 2012 (the “Survey”). Purchaser has also received Seller’s Phase I Environmental Site Assessment prepared by Nova Consulting Group,
Inc. and issued on October 2, 2012 (“Existing Environmental”) relating to the Property. Purchaser may, if it desires, at its sole cost and expense, have the Existing Title and/or Existing Environmental updated (“Updated
Title” and “Updated Environmental”, as applicable). If there is a material change to the Existing Title and/or Existing Environmental, Purchaser shall have the right to disapprove the material change to the Existing Title
and/or Existing Environmental, and such disapproval shall be set forth in one or more notices (each, a “Disapproval Notice”) given to Seller not later than the expiration of the Inspection Period stating the specific material
change(s) to the Existing Title and/or Existing Environmental, and which specific terms, provisions or contents of said items and documents or contents of Existing Title and/or Existing Environmental, are disapproved by Purchaser. For purposes of
this Section, “material change” means a material adverse change to the Existing Title and/or Existing Environmental, that (x) would prevent a commercial lender from providing a loan to Purchaser to acquire the Property, and/or
(y) in the case of the Updated Environmental, reveals recognized environmental conditions. Seller shall have until the date which is fifteen (15) days after the date of the applicable Disapproval Notice (the “Cure Expiration
Date”) in which to cure or eliminate or agree to cure or eliminate all items which Purchaser disapproves in the applicable Disapproval Notice, and to furnish evidence satisfactory to Purchaser and the Title Company (if applicable) that all
such items have been cured or eliminated or that arrangements have been made with the Title Company (if applicable) and any parties in interest to cure or eliminate the same at or prior to the Closing. If such evidence is not received by Purchaser
and the Title Company (if applicable) on or before the Cure Expiration Date and Seller is unable or unwilling to cure or eliminate such items, then Purchaser shall have the right to elect to terminate this Agreement within five (5) Business
Days of receipt of written notice from Seller that Seller cannot or will not cure or eliminate such items (the “Seller No Action Notice”) and upon such election, the Escrow Deposit shall be immediately refunded to Purchaser, and
thereupon the parties hereto shall have no further obligations one to the other under this Agreement (other than those that are expressly stated to survive the termination of this Agreement). 

ARTICLE II. 
 SURVEY
AND TITLE COMMITMENT; PERMITTED EXCEPTIONS 
 2.01 Title Commitment. Purchaser hereby acknowledges its receipt of the Title
Commitment. Purchaser shall deliver written notice to Seller and the Title Company on or before the expiration of three (3) Business Days after the receipt of the New Survey (such notice being called the “Objection
Notice”) if the condition of title to the Property as set forth in the Title Commitment is not satisfactory. In the event Purchaser states in the Objection Notice that the condition of title to the Property is not satisfactory,
Seller may (but shall not be obligated to), at 

  
 7 

 
Seller’s sole cost and expense, undertake to eliminate or modify all unacceptable matters described in the Objection Notice to the reasonable satisfaction of Purchaser. In the event Seller
has not satisfied (or elected to satisfy by Closing) such objections between the date Seller receives the Objection Notice and 5:00 p.m. Dallas, Texas time one (1) Business Day before the expiration of the Inspection Period (such period being
called the “Cure Period”), Purchaser may, at its option and as its sole remedy, either (a) accept title to the Property subject to the objections raised by Purchaser, without an adjustment in the Purchase Price,
in which event such objections shall be deemed to be waived for all purposes, or (b) terminate this Agreement by written notice delivered to the Title Company and Seller prior to 5:00 p.m. Dallas, Texas time on the final day of the Inspection
Period, in which event the Escrow Deposit shall be delivered to Seller by the Title Company and this Agreement shall be of no further force or effect. Notwithstanding the foregoing, if Seller fails to cure any Monetary Lien or if Purchaser
terminates this Agreement pursuant to Section 1.04(f), the Escrow Deposit shall be refunded to Purchaser by the Title Company. If Seller has not responded to Purchaser’s Objection Notice by the end of the Cure Period, Seller shall
be deemed to have given notice that it does not intend to cure any of Purchaser’s objections. If Purchaser shall fail to deliver the Objection Notice upon the earlier to occur of (i) no later than three (3) Business Days after receipt
of the New Survey, or (ii) prior to the expiration of the Inspection Period, Purchaser shall be conclusively deemed to have approved the condition of the title to the Property as set forth in the Title Commitment and on the New Survey, and all
matters set forth therein shall be included within the Permitted Exceptions (as hereinafter defined). Notwithstanding the foregoing, Seller, at its cost, shall be obligated to cure or remove by Closing, the following: all mortgages and deeds of
trust against the Property, mechanics’ and materialmens’ liens and all other liens against the Property of a liquidated amount, including any interest, penalties and fees associated therewith arising by, through or under Seller
(collectively “Monetary Liens”). 
 2.02 Survey. Purchaser hereby acknowledges its receipt of the
Survey. Purchaser shall promptly order and upon receipt deliver to Seller an ALTA survey of the Property (the “New Survey”), such new survey shall be at Purchaser’s sole cost and expense. 

2.03 Permitted Exceptions. The Property shall be conveyed to Purchaser subject only to the Permitted Exceptions. Any matters described
in the Title Commitment or shown on the Survey or the New Survey that are not included on the Objection Notice or matters included in the Objection Notice for which Seller chose not to cure during the Cure Period other than Monetary Liens are
collectively called the “Permitted Exceptions”. 
 ARTICLE III. 

CLOSING 
 3.01
Closing Date. The consummation of the transactions contemplated by this Agreement (the “Closing”) shall take place in the offices of the Title Company, prior to 3:00 p.m. Dallas, Texas time on or before thirty
(30) days after the final day of the Inspection Period (such date being called the “Closing Date”). 

3.02 Seller’s Obligations at Closing. At the Closing, Seller shall do the following: 

  
 8 

 a. Execute, acknowledge, and deliver to the Title Company a special warranty deed (the
“Deed”) in the form of the deed attached hereto as Exhibit B and made a part hereof for all purposes, conveying the Land and the Improvements to Purchaser, subject only to the Permitted Exceptions. 

b. Execute, acknowledge and deliver to the Title Company a bill of sale and assignment and assumption of leases and service contracts (the
“Assignment”) in the form as attached hereto as Exhibit C and made a part hereof for all purposes. 

c. Execute and deliver to the Title Company a certification of non-foreign status of Seller pursuant to Section 1445 of the Internal
Revenue Code of 1986, as amended. 
 d. Execute and deliver to the Title Company a letter addressed to the tenants under the Leases advising
such tenants of the sale of the Property to Purchaser (collectively, the “Tenant Notice Letters”), in the form attached hereto as Exhibit D and made a part hereof. 

e. Execute and deliver to the Title Company a closing statement approved by Seller and Purchaser and a customary affidavit of debts, liens and
parties in possession in form reasonably acceptable to Seller and the Title Company. 
 f. Deliver such organizational and authority
documents of Seller to the Title Company as the Title Company may reasonably require in connection with the Closing. 
 g. Deliver to the
Title Company a rent roll for the Property dated within five (5) days of the Closing Date and certified by Manager to be true and correct in all material respects to its knowledge (the “Updated Rent Roll”). 

h. Cause to be furnished and delivered to Purchaser an owner policy of title insurance issued by the Title Company or a commitment from the
Title Company to deliver the same (the “Policy”) insuring fee simple title to the Land and Improvements in a face amount equal to the Purchase Price and containing no exceptions other than the Permitted Exceptions.

 i. Deliver to Purchaser a termination of the existing management agreement for the Property, executed by the Seller and the Manager (to
the extent required to be executed by the Manager). 
 j. Deliver or make available at the Property, in each case to the extent in the
possession of Seller or the Manager: (i) originals (or copies to the extent originals are not available) of all Leases (including the related lease files) and Assumed Contracts; (ii) originals (or copies to the extent originals are not
available) of all certificates of occupancy, guaranties, warranties, governmental permits, approvals and licenses issued with respect to the Property; and (iii) all plans, specifications, mechanical, electrical and plumbing layouts, operating
manuals, purchase orders, brochures, marketing materials, advertisements, tenant lease files, and other files and records in the possession of Seller and its managing agent and utilized in connection with the operation and maintenance of the
Property and Improvements. 

  
 9 

 3.03 Purchaser’s Obligations at Closing. Contemporaneously with the performance by
Seller of its obligations set forth in Section 3.02 above, Purchaser shall do the following at the Closing: 
 a. Pay to Seller
(or cause the Title Company to pay to Seller) the Purchase Price as provided in Section 1.02 above, as adjusted in accordance with the prorations as set forth in this Agreement. 

b. Execute and deliver the Assignment to the Title Company. 

c. Execute and deliver the Tenant Notice Letters to the Title Company. 

d. Deliver to the Title Company such organizational and authority documents of Purchaser as the Title Company may reasonably require in
connection with the Closing. 
 e. Execute and deliver to the Title Company such other documents as the Title Company may reasonably require
in connection with the Closing including, without limitation, a closing statement. 
 3.04 Closing Costs. Seller shall pay
(a) the basic premium payable for the Policy (excluding the cost of any endorsements or extended coverage thereto and the cost of any lender’s policy of title insurance) and (b) the documentary stamp taxes associated with the
conveyance of the Property to Purchaser that are due upon recordation of the Deed. Purchaser shall pay (a) the costs of recording the Deed, (b) all premiums payable for any endorsements to the Policy and the cost of any or extended
coverages to the Policy and the cost of any lender’s policy of title insurance, and (c) costs required to update, revise or recertify the Survey. The escrow fees of the Title Company shall be shared equally by Seller and Purchaser. Except
as provided in Section 7.11 below, Seller and Purchaser shall each pay their own legal fees in connection with this Agreement. 

3.05 Prorations. The following items shall be prorated between Seller and Purchaser (with Purchaser deemed to be holding title as of
12:01 a.m. on the Closing Date): 
 a. Seller shall be responsible for the payment of all ad valorem and other real estate taxes and
assessments with respect to the Property imposed by any governmental authority (collectively, the “Taxes”) that are due and payable as of Closing. All Taxes that are not due and payable as of Closing with respect to
the Property shall be prorated between Seller and Purchaser as of the Closing Date, and Purchaser shall assume liability for the Taxes for the year in which the Closing occurs. If the Closing shall occur before the tax rate is fixed for the then
current year, the apportionment of the Taxes shall be made upon the basis of the tax rate for the immediately preceding tax year applied to the latest assessed valuation of the Property. Within thirty (30) days after the actual amount of the
Taxes for the year in which the Closing occurs are determined, Seller and Purchaser shall adjust the proration of the Taxes and Seller or Purchaser, as the case may be, shall pay to the other any amount required as a result of such adjustment. 

b. All rents and other sums due under the Leases for the month in which the Closing occurs which have been collected by Seller as of the
Closing Date shall be prorated 

  
 10 

 
between Seller and Purchaser as of the Closing Date. Any prepaid rents or other sums due under the Leases for the period following the Closing Date shall be paid over by Seller to Purchaser. All
rents and other sums due under the Leases for the month in which the Closing occurs which have not been collected by Seller as of the Closing Date shall not be prorated. Following the Closing, Purchaser will attempt to collect any such amounts in
the ordinary course of business, but shall not be obligated to spend any money or take legal action to collect any such amounts. In the event Purchaser collects rents after the Closing attributable to the period prior to the Closing from a tenant
that owes rents as of the Closing Date, then Purchaser shall promptly remit the balance thereof to Seller after applying such collections to arrearages owed to Purchaser. Any rent or other income received by Seller after Closing which are owed to
Purchaser shall be remitted to Purchaser promptly after receipt for allocation and disbursement as provided herein. 
 c. All refundable
resident security deposits, to the extent actually held by Seller, will be credited against the Purchase Price and assumed by Purchaser. 

d. All other income and operating expenses (including utilities not payable by tenants to the applicable utility providers but excluding any
lump-sum or upfront payment under any Assumed Contracts) of the Property (subject to the terms of Section 1.04(c) above) shall be prorated between Seller and Purchaser as of the Closing Date based upon the best available information. All
items of income and expense for the period prior to the Closing Date will be for the account of Seller, and all items of income and expense for the period from and after the Closing Date will be for the account of Purchaser. Seller and Purchaser
hereby agree that if any of the aforesaid prorations cannot be calculated accurately on the Closing Date, then the same shall be calculated within thirty (30) days after the Closing Date, or as soon as sufficient information is available to
permit the parties to accurately calculate such proration(s), and either party owing the other party a sum of money based on such subsequent proration(s) shall pay said sum to the other party within ten (10) days after such calculation is made
and agreed upon by the parties. Any discrepancy resulting from such recalculation and any errors or omission in computing prorations at Closing shall be corrected at this time. 

e. Not more than two (2) Business Days prior to Closing (“Walk Though Date”), a representative of
Purchaser and a representative of Seller shall conduct an onsite walk-through of the then unoccupied rental units on the Property to determine whether such unoccupied rental units are in “rent ready” condition. With respect to any rental
unit that is vacated on or before five (5) days prior to Closing that Seller has not placed in a “rent ready” condition before the Walk Through Date, Purchaser shall receive a credit against the Purchase Price at Closing in the amount
of $500 per unit. As used herein, “‘rent ready’ condition” shall mean ready in accordance with Seller’s normal practices and procedures as of the date of this Agreement. Nothing contained in this Section shall be construed
as limiting Purchaser’s rights and Seller’s obligations under the other provisions of this Agreement. 
 f. Seller and Purchaser
shall endeavor to cause the Title Company to prepare a draft joint closing/settlement statement containing the prorations described in this Section 3.07 and deliver the same together with invoices or bills for all prorated expenses and
other reasonable backup information from Seller no later than 3:00 p.m. Dallas, Texas time two (2) Business Days before Closing. 

  
 11 

 g. This Section 3.07 shall survive the Closing. 

3.06 Purchaser’s Obligations After the Closing. Purchaser shall deliver copies of the fully executed Tenant Notice Letters to the
respective tenants noted therein promptly after Closing provided that Purchaser receives copies of the fully executed Tenant Notice Letters at Closing from Seller, and Purchaser shall indemnify, defend and hold Seller harmless from any and all
suits, claims, demands, causes of action, damages, losses, fees and expenses (including, without limitation, attorneys’ fees and expenses and court costs) in any way relating to Purchaser’s failure to deliver the Tenant Notice Letters to
the tenants noted therein. 
 ARTICLE IV. 

REPRESENTATIONS AND WARRANTIES AND COVENANTS 

4.01 Representations and Warranties of Seller. Seller hereby represents and warrants to Purchaser, both as of the Effective Date and as
of the Closing Date, as follows: 
 a. Seller has all requisite power and authority, and has taken all actions required by its
organizational documents to authorize it to execute and deliver this Agreement. The individual executing this Agreement and any other documents and instruments executed by Seller pursuant hereto has the legal power, right, and actual authority to
bind Seller to the terms and conditions hereof and thereof. 
 b. Seller is not a “foreign person” as that term is defined in
Section 1445 of the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated thereunder. 
 c. There are
no actions, suits or proceedings pending or, to the actual knowledge of Seller, threatened or asserted against or with respect to Seller or the Property. 

d. Seller has not received written notice of, and has no actual knowledge of any condemnation action, special assessment or other imposition
of any nature which is pending or being contemplated with respect to the Property or any portion thereof, other than ad valorem taxes and assessments. 

a. All rent rolls provided to Purchaser are, or to be provided by Seller will be, true and correct in all material respects as of the date
shown thereon. 
 b. Exhibit H attached hereto lists all Service Contracts. To Seller’s actual knowledge, there exist no
material defaults under any Service Contract. 
 c. Seller has not received any written notice from any governmental agency of any uncured
violation of any federal, state, county or municipal law, ordinance, order, regulation or requirement affecting the Property, including without limitation violation of Environmental Laws (as defined in Section 1.04(c) hereof). 

d. As used herein, Seller’s actual knowledge is limited to the current and conscious knowledge of Michael Sauer, the asset manager of the
Property who has knowledge of 

  
 12 

 
the day-to-day operations of the Property. Under no circumstances shall any individual named above have any personal liability under this Agreement. 

e. Seller shall promptly notify Purchaser in writing of any event or condition known to Seller which occurs prior to Closing Date and which
causes a material change in the facts relating to, or the truth of, any of the representations and warranties set forth in this Section 4.01. Such representations and warranties, as modified by Seller prior to Closing, shall survive the
Closing for a period of six (6) months after the Closing and thereafter shall be of no further force and effect unless and to the extent that Purchaser shall have asserted a breach of any such representation or warranty in a written notice to
Seller delivered prior to the expiration of such six (6) month period. Subject to the foregoing limitation on survival, in the event there is a material breach of one or more of the representations or warranties set forth in this
Section 4.01, Purchaser shall be entitled to recover from Seller the actual damages suffered by Purchaser as a proximate result of Purchaser’s reliance upon any such representation or warranty up to a maximum aggregate amount of
$250,000 (the “Surviving Cap”). Seller shall not be liable for any claim(s) which in the aggregate do(es) not exceed $25,000. Notwithstanding anything to the contrary contained herein, Purchaser acknowledges that
Purchaser shall not be entitled to rely on any representation made by Seller in Section 4.01 to the extent, prior to or at Closing, Purchaser shall have or obtain actual knowledge of any information that is contradictory to such
representation or warranty; provided, however, if Purchaser determines prior to Closing that any of the representations and warranties made by Seller in Section 4.01 above are not true and correct in all material respects, then Purchaser
may, at its option and as its sole and exclusive remedy, by sending to Seller written notice of its election, either (i) terminate this Agreement, in which event the Escrow Deposit shall be refunded to Purchaser by the Title Company, or
(ii) waive such inconsistency and proceed to Closing with no adjustment in the Purchase Price, in which event Seller shall have no further liability as to such matter thereafter. Notwithstanding the foregoing, if a material breach of a
representation or warranty was intentionally or willfully made by Seller, and if Purchaser elects to terminate this Agreement as a result thereof, Seller shall be obligated to reimburse Purchaser for all out-of-pocket expenses reasonably incurred by
Purchaser in connection with this Agreement, not to exceed the amount of $25,000 (the “Reimbursement Cap”). In no event shall Seller be liable to Purchaser under this Agreement at law or in equity for indirect,
special, consequential (including lost profits) or punitive damages arising out of or in connection with this Agreement or otherwise in excess of the Surviving Cap. 

4.02 Representations and Warranties of Purchaser—DTPA WAIVER. Purchaser represents and warrants to Seller, both as of the
Effective Date and as of the Closing Date, as follows: 
 a. Purchaser has all requisite power and authority, and has taken all actions
required by its organizational documents to authorize it to execute and deliver this Agreement. All of the individuals executing this Agreement and any other documents and instruments executed by Purchaser pursuant hereto have the legal power,
right, and actual authority to bind Purchaser to the terms and conditions hereof and thereof. 
 b. PURCHASER HEREBY REPRESENTS AND WARRANTS
TO SELLER THAT (A) PURCHASER IS NOT IN A SIGNIFICANTLY DISPARATE BARGAINING POSITION, (B) PURCHASER IS REPRESENTED BY LEGAL COUNSEL, 

  
 13 

 
(C) PURCHASER IS SEEKING TO ACQUIRE THE PROPERTY, WHICH WILL NOT BE USED AS A FAMILY RESIDENCE, FOR A CONSIDERATION THAT EXCEEDS $500,000, AND (D) EITHER (i) PURCHASER IS A BUSINESS
ENTITY THAT EITHER HAS ASSETS OF $25,000,000 OR MORE OR IS OWNED OR CONTROLLED BY A CORPORATION OR ENTITY WITH ASSETS OF $25,000,000 OR MORE, OR (ii) PURCHASER IS A SOPHISTICATED REAL ESTATE INVESTOR AND HAS KNOWLEDGE AND EXPERIENCE IN
FINANCIAL AND BUSINESS MATTERS THAT ENABLE IT TO EVALUATE THE MERITS AND RISKS OF THIS TRANSACTION. PURCHASER HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS, REMEDIES AND BENEFITS UNDER THE TEXAS DECEPTIVE TRADE PRACTICES-CONSUMER
PROTECTION ACT (SECTIONS 17.41 AND FOLLOWING OF THE TEXAS BUSINESS AND COMMERCE CODE) AND ANY OTHER SIMILAR CONSUMER PROTECTION LAW, WHETHER FEDERAL, STATE OR LOCAL (THE “DTPA”). PURCHASER COVENANTS NOT TO SUE SELLER
UNDER THE DTPA OR ANY SUCH SIMILAR CONSUMER PROTECTION LAW. 
 c. Such representations and warranties shall survive the Closing for a period
of six (6) months after the Closing. 
 4.03 Covenants and Agreements of Seller. Seller covenants and agrees with Purchaser that
from the Effective Date until the Closing Date: 
 a. Seller shall operate, maintain and lease the Property in substantially the same manner
as it has prior to the Effective Date. Seller shall give Purchaser copies of all written notices received by Seller asserting any breach or default under the Leases or the Assumed Contracts or any violation of any licenses, permits, governmental
approvals or certificates of occupancy or any covenants, conditions, restrictions, laws, statutes, rules, regulations or ordinances applicable to the Property. Seller shall perform when due all of Seller’s obligations under all applicable laws.

 b. Seller shall notify Purchaser of any litigation, arbitration, administrative hearing or condemnation proceeding before any court or
governmental agency concerning or affecting the Property which is instituted after the Effective Date and of which Seller receives written notice, except for routine resident eviction matters. 

c. After the expiration of the Inspection Period, Seller will not enter into any new service contract with respect to any portion of the
Property without the prior written consent of Purchaser, which consent shall not be unreasonably withheld, conditioned or delayed, except that Seller shall be entitled, without Purchaser’s consent, to enter into service contracts in the
ordinary course of business that are terminable without cause and without the payment of any termination penalty on not more than thirty (30) days’ prior notice. 

d. Seller shall maintain the current or substantially similar insurance coverage on the Property. 

e. Prior to the expiration of the Inspection Period, Purchaser shall deliver notice to Seller of which Service Contracts (other than
“national contracts”) set forth on Exhibit  

  
 14 

 
H Purchaser elects to cause Seller to terminate in accordance with the terms of this paragraph. Seller will provide a notice of termination for all such Service Contracts that
Purchaser elects to cause Seller to terminate, provided that such Service Contracts can be terminated in accordance with their terms without the payment of a termination fee or penalty by Seller, unless Purchaser agrees to bear the entire cost of
such fee or penalty (the “Terminable Service Contracts”). Purchaser shall assume at Closing (i) all Service Contracts identified as “Must Assume” on Schedule 4.03(e)
attached hereto, (ii) all Service Contracts (other than “national contracts”) other than the Terminable Service Contracts, and (iii) all Service Contracts (other than “national contracts”) that Purchaser has not
notified Seller on or prior to the expiration of the Inspection Period to terminate. In any event, Seller will terminate, at no cost to Purchaser, all management agreements. 

ARTICLE V. 
 CASUALTY
AND CONDEMNATION 
 5.01 Casualty. Seller shall deliver written notice to Purchaser of any damage to the Property by fire or
other casualty which occurs prior to the Closing. If prior to the Closing, any fire or casualty damage to the Property occurs which would cost $1,000,000.00 or more to repair, Purchaser shall have the right to terminate this Agreement by written
notice delivered to Seller within ten (10) days after Purchaser receives written notice of such damage and immediately upon such termination, the Escrow Deposit shall be delivered to Purchaser. If Purchaser does not elect to terminate this
Agreement, or in the event of fire or casualty damage which would cost less than $1,000,000.00 to repair, then the Closing shall take place as provided in this Agreement without any offset against or deduction from the Purchase Price and Seller
shall assign to Purchaser at the Closing all of Seller’s rights to receive insurance proceeds as a result of such damage and Seller shall pay to Purchaser the amount of the deductible, if any, payable under Seller’s policy of fire and
casualty insurance. Purchaser and Seller agree that the Uniform Vendor-Purchaser Risk of Loss Act shall not apply to this Agreement. 
 5.02
Condemnation. Seller shall deliver to Purchaser written notice of any pending, proposed or threatened taking or condemnation of all or any material portion of the Property of which Seller receives notice prior to the Closing. If prior to the
Closing, any taking or condemnation of all or any material portion of the Property is proposed or threatened, or if Seller or Purchaser receive notice that any such taking or condemnation is pending, then in such event, Purchaser shall have the
right to terminate this Agreement by written notice delivered to Seller within ten (10) days after Purchaser receives notice of such pending, proposed or threatened taking or condemnation and upon such termination, the Escrow Deposit shall be
refunded to Purchaser. If Purchaser does not elect to terminate this Agreement, then the Closing shall take place as provided in this Agreement without any offset against, or deduction from, the Purchase Price and there shall be assigned to
Purchaser at the Closing all right, title and interest of Seller in and to all condemnation proceeds which may be paid or payable with respect to the Property. For the purposes of this Section 5.02, “material portion of the
Property” shall mean a taking of more than ten percent (10%) of the Land or that materially adversely affects the current use of the Property. 

ARTICLE VI. 

  
 15 

 
PROVISIONS WITH RESPECT TO DEFAULT 
 6.01 Default by Seller. In the event
Seller fails to perform any of its material obligations hereunder (and fails to cure same within five (5) Business Days of receipt of written notice from Purchaser) or consummate the Closing for any reason, except for a default by Purchaser,
Purchaser may, at its election and as its sole and exclusive remedy, either (a) terminate this Agreement and immediately receive a refund of the Escrow Deposit from the Title Company together with reimbursement by Seller to Purchaser of all
actual and verifiable third-party out-of-pocket expenses reasonably incurred by Purchaser in connection with this Agreement not to exceed the Reimbursement Cap, or (b) bring an action to enforce specific performance of this Agreement against
Seller, provided that such action is commenced within sixty (60) days after the Closing Date. Purchaser specifically waives all other rights and remedies, including, without limitation, the right to actual, punitive, speculative, consequential
or other damages and, except for having the right to file as lis pendens as provided for as part of Purchaser’s remedy of specific performance, Purchaser specifically waives the right to file any lien, notice, petition, memorandum or other
instrument in the real estate records of the appropriate county or otherwise. 
 6.02 Default by Purchaser. In the event Purchaser
fails to perform any of its obligations hereunder or fails to purchase the Property for any reason, except for a default by Seller as provided in Section 6.01 above, Seller may, at its election and as its sole and exclusive remedy,
terminate this Agreement and receive the Escrow Deposit from the Title Company as liquidated damages. The parties have agreed that Seller’s actual damages, in the event of Purchaser’s breach hereof, would be extremely difficult or
impracticable to determine. Therefore, the parties acknowledge that the Escrow Deposit has been agreed upon, after negotiation, as the parties’ reasonable estimate of Seller’s damages. The foregoing shall in no way be deemed to limit any
of Purchaser’s liability to Seller pursuant to any indemnification provisions contained in this Agreement, or with respect to any other obligations which survive the Closing or which are to be performed by the Purchaser after the Closing as
provided in other Sections of this Agreement. 
 ARTICLE VII. 

MISCELLANEOUS 
 7.01
Brokerage Fees and Commissions. Each party represents and warrants to the other that such party has not dealt with a real estate agent or broker in connection with the negotiation of this Agreement except CBRE
(“Broker”). If the Closing occurs, Seller shall pay Broker a commission in accordance with the terms of a separate agreement between Seller and Broker. If any other claims for brokerage commissions or fees are ever made
against Seller or Purchaser in connection with this transaction, all such claims shall be handled and paid by the party whose commitments form the basis of such claims. Seller and Purchaser each agree to indemnify and hold harmless the other from
and against any and all such claims or demands with respect to any brokerage fees or agents’ commissions or other compensation asserted by any person, firm, or corporation in connection with this Agreement or the transactions contemplated
herein insofar as any such claim or demand is based upon a contract or commitment of the 

  
 16 

 
indemnifying party. This Section 7.01 shall survive the Closing and any termination of this Agreement. 

7.02 Notices. All notices, demands and requests which may be given or which are required to be given by either party to the other, and
any exercise of a right of termination provided by this Agreement, shall be in writing and shall be deemed effective either (a) on the date personally delivered to the address indicated herein, as evidenced by written receipt therefor, whether
or not actually received by the person to whom addressed; (b) five (5) days following deposit in the United States mail if by certified or registered mail, return receipt requested, addressed to the intended recipient at the address
indicated herein; (c) one (1) Business Day following the day deposited into the custody of a nationally recognized overnight delivery service such as Fed Ex for overnight next day delivery, addressed to such party at the address specified
herein; or (d) on the day sent if sent by email before 5:00 p.m. Dallas, Texas time (or the following day if sent after 5:00 p.m. Dallas, Texas time) to the intended recipient at the email address noted below. 

 

									
		  	If to Seller:	  	MREI III Bay Club, LLC	  		  	
		  		  	5429 LBJ Freeway, Suite 800	  		  	
		  		  	Dallas, Texas 75240	  		  	
		  		  	Attn: John Ascenzo	  		  	
		  		  	Email: jascenzo@milestonegp.com	  		  	
					
		  	with a copy to:	  	Gardere Wynne Sewell LLP	  		  	
		  		  	2021 McKinney Avenue	  		  	
		  		  	Suite 1600	  		  	
		  		  	Dallas, Texas 75201	  		  	
		  		  	Attn: J. Trevor Ives	  		  	
		  		  	Email: tives@gardere.com	  		  	
					
		  	If to Purchaser:	  	Resource Apartment OP III, LP	  		  	
		  		  	c/o Resource Real Estate, Inc.	  		  	
		  		  	1845 Walnut Street, 18th Floor	  		  	
		  		  	Philadelphia, Pennsylvania 19103	  		  	
		  		  	Attn: Pamela Arms	  		  	
		  		  	Email: parms@resourcerei.com	  		  	
					
		  	with a copy to:	  	Resource Real Estate, Inc.	  		  	
		  		  	1845 Walnut Street, 18th Floor	  		  	
		  		  	Philadelphia, Pennsylvania 19103	  		  	
		  		  	Attn: Aldie Jennings Loubier, Esq.	  		  	
		  		  	Email: aloubier@resourcerei.com	  		  	

 Any party hereto may, at any time by giving five (5) days’ written notice to the other party hereto, designate any
other address in substitution of the foregoing address to which such notice shall be given. 

  
 17 

 7.03 Entire Agreement; Modification. This Agreement embodies and constitutes the entire
understanding among the parties with respect to the transactions contemplated herein, and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement. Neither this
Agreement nor any provision hereof may be waived, modified, amended, discharged or terminated except by an instrument in writing signed by the party against which the enforcement of such waiver, modification, amendment, discharge or termination is
sought, and then only to the extent set forth in such instrument. 
 7.04 Headings. Descriptive headings are for convenience only and
shall not control or affect the meaning or construction of any provision of this Agreement. 
 7.05 Binding Effect. This Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and their successors and assigns, provided that except as hereafter provided, no assignment shall be made by either party without the prior written consent of the other
party. 
 7.06 Time of Essence. Time is of the essence in this Agreement and of each covenant and agreement that is to be performed
at a particular time or within a particular period of time. However, if the final date of any period which is set out in any provision of this Agreement or the Closing Date falls on a Saturday, Sunday or legal holiday under the laws of the United
States or the State of Texas, then the time of such period or the Closing Date, as the case may be, shall be extended to the next date which is not a Saturday, Sunday or legal holiday, and for the purpose of this Agreement, the term
“Business Day” shall mean any day which is not a Saturday, Sunday or legal holiday under the laws of the United States or the State of Texas. 

7.07 Multiple Counterparts; Facsimile Signatures. This Agreement may be executed in a number of identical counterparts, each of which
for all purposes is deemed an original, and all of which constitute collectively one agreement, but in making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart. Signatures to this Agreement
may be transmitted via facsimile or scanned and e-mailed, and delivery thereby shall be deemed sufficient for all purposes to the same extent as would be delivery of an original signature. 

7.08 Assignment by Purchaser. Purchaser shall not have the right to assign this Agreement without the prior written consent of Seller.
Notwithstanding the foregoing, Purchaser shall be entitled to assign this Agreement to an entity controlled by or under common control with Purchaser without Seller’s prior consent (but with written notice delivered to Seller of such assignment
at least ten (10) days prior to the Closing Date). 
 7.09 Prohibition on Recording Agreements. Except as provided for herein,
Purchaser agrees that neither this Agreement, a copy of this Agreement, nor any instrument describing or referring to this Agreement shall ever be filed of record in the County in which the Property is located, and in the event Purchaser records
this Agreement, a copy of this Agreement or any instrument describing or referring to this Agreement, Seller, at Seller’s option, may terminate this Agreement and receive immediate payment of the Escrow Deposit from the Title Company. Seller
acknowledges that Purchaser is entitled to file a lis pendens as part of its remedy under Section 6.01(b) in the event of a default by Seller and therefore agrees that the filing of such lis

  
 18 

 
pendens, or Purchaser’s compliance with the statutory requirements associated therewith, do not violate this Section 7.09. 

7.10 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State in which the Property is
located, without reference to its choice of law principles. 
 7.11 Attorneys’ Fees. Should either party hereto institute any
action or proceeding in court to enforce this Agreement, the prevailing party in any such action or proceeding shall be entitled to receive from the non-prevailing party all reasonable attorneys’ fees and court costs in connection with such
action or proceeding 
 7.12 Reporting Person. The Title Company is hereby designated as the “Reporting Person” pursuant to
Section 6045 of the Internal Revenue Code and the Regulations promulgated thereunder. 
 7.13 Construction. The parties
acknowledge and agree that the parties and their counsel have reviewed this Agreement and this Agreement will not be presumptively interpreted against either party. 

7.14 Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court of competent
jurisdiction, the invalid, illegal, or unenforceable provision will not affect any other provisions, and this Agreement will be construed as if the invalid, illegal, or unenforceable provision is severed and deleted from this Agreement. 

7.15 Gender; Number. Unless the context requires otherwise, all pronouns used in this Agreement will be construed to include the other
genders, whether used in the masculine, feminine or neuter gender. Words in the singular number will be construed to include the plural, and words in the plural will be construed to include the singular. 

7.16 Confidentiality. Purchaser shall keep confidential the existence and the terms of this Agreement, except as to their employees,
consultants, attorneys, accountants, and other agents that may be involved in conducting the due diligence related to the transactions contemplated by this Agreement. Purchaser and its representatives shall hold in strictest confidence all data and
information obtained with respect to the Property and/or Seller or its business, whether obtained before or after the execution and delivery of this Agreement, and shall not disclose the same to others; provided, however, that it is understood and
agreed that (i) Purchaser may disclose such data and information to the employees, consultants, accountants, and attorneys of Purchaser provided that Purchaser advises such persons of the confidential nature of such information and in all
events Purchaser shall be responsible for its employees, consultants, accountants and attorneys’ obligation to keep confidential the data and information provided to them pursuant to this Agreement, and (ii) Purchaser’s obligation to
keep such information confidential shall terminate as of the earlier to occur of the Closing or the expiration of eighteen (18) months after the date Purchaser terminates this Agreement, except that such period shall equal three (3) years
for any customer information and data. Purchaser, its employees, agents, consultants, accountants, and attorneys shall use Seller’s confidential information only for purposes of evaluating whether to consummate the transactions

  
 19 

 
contemplated by this Agreement, and for no other purposes. In the event of a breach or threatened breach by Purchaser or its agents or representatives of this Section 7.16, Seller
shall be entitled to an injunction restraining Purchaser or its agents or representatives from disclosing, in whole or in part, such confidential information. Nothing herein shall be construed as prohibiting Seller from pursuing any other available
remedy at law or in equity for such breach or threatened breach. The provisions of this Section 7.16 shall survive the termination of this Agreement. 

7.17 Filings/Press Releases. Prior to Closing, both Seller and Purchaser agree to keep the terms of this Agreement confidential, and
not to disclose its contents to anyone except (a) their respective lenders, investors, partners, legal counsel, accountants, and other representatives that are involved with the consummation of this transaction; or (b) as may be required
by applicable law, except that either party may make such public announcement regarding the transaction contemplated by this Agreement as may, in such party’s reasonable judgment, be required by applicable law, including, without limitation,
disclosures required to be made to the Securities and Exchange Commission and any press releases issued in connection with such Securities and Exchange Commission. Notwithstanding the foregoing, after Closing, either Seller or Purchaser shall be
permitted to make public announcements provided the same does not identify the other party, the Purchase Price or the street address of the Property. 

7.18 Watch List. In the event that Purchaser, any assignee of Purchaser, Purchaser’s lender, or the source of any of
Purchaser’s equity for the consummation of this Agreement appears on the Specially Designated Nationals and Blocked Persons list maintained by the Office of Foreign Assets Control of the United States Department of the Treasury prior to
Closing, Seller may, by written notice given to Purchaser at or before the Closing, terminate this Agreement. If Seller elects to terminate this Agreement, pursuant to this Section 7.18, the Escrow Deposit shall be promptly paid to
Seller by the Title Company and neither party shall have any further rights or obligations hereunder, except for the obligations that expressly survive the termination of this Agreement, all of which shall survive the Closing or, if the purchase and
sale contemplated hereunder is not consummated, any termination of this Agreement. 
 7.19 Effective Date. The Effective Date shall
be June 12, 2017. 
 7.20 Exclusivity. Until the earlier to occur of termination of this Agreement or the Closing Date, Seller
(and Seller’s agents, including Broker) shall cease to market the Property and shall refrain from solicitation of backup offers and any discussion, negotiation or any other communication concerning or related to the sale of the Property with
any third party other than Purchaser. 
 7.21 Rule 3-14 Compliance. Seller shall on or up to forty-five (45) days after Closing
provide to Purchaser (at Purchaser’s expense) copies of, or shall provide Purchaser reasonable access to, such factual information as may be reasonably requested by Purchaser, and in the possession or control of Seller, or the Manager or
accountants, necessary to enable Purchaser’s auditor to conduct an audit, in accordance with Rule 3-14 of Securities and Exchange Commission Regulation S-X, of the income statements of the Property for the year to date of the year in which
Closing occurs plus the one immediately preceding calendar year. Purchaser shall be responsible for all out-of-pocket costs associated with this audit and the reasonable costs of all 

  
 20 

 
personnel required to participate in this audit. Seller shall up to forty-five days after the Closing reasonably cooperate (at no cost to Seller) with Purchaser’s auditor in the conduct
of such audit, which will include responding to verbal requests for information regarding internal controls and follow-up questions on the financial information provided to the Purchaser. Seller shall maintain its records for use under this
Section 7.21 for a period of not less than ninety days after the Closing Date. The provisions of this Section shall survive Closing for a period of ninety (90) days. 

7.22. Florida Disclosure. 

(a) Florida law requires the following disclosure to be given to the purchaser of property in Florida. Seller has made no independent
inspection of the Property to determine the presence of conditions which may result in radon gas; however, Seller is not aware of any such condition. Certain building methods and materials have been proven to reduce the possibility of radon gas
entering the building: 
 “RADON GAS: RADON IS A NATURALLY OCCURRING RADIOACTIVE GAS THAT, WHEN IT HAS ACCUMULATED IN A BUILDING IN
SUFFICIENT QUANTITIES, MAY PRESENT HEALTH RISKS TO PERSONS WHO ARE EXPOSED OVER TIME. LEVELS OF RADON THAT EXCEED FEDERAL AND STATE GUIDELINES HAVE BEEN FOUND IN BUILDINGS IN FLORIDA. ADDITIONAL INFORMATION REGARDING RADON AND RADON TESTING MAY BE
OBTAINED FROM YOUR COUNTY PUBLIC HEALTH UNIT.” 
 (b) JURY TRIAL WAIVER. TO THE EXTENT PERMITTED BY APPLICABLE
LAW, THE PARTIES HEREBY AGREE TO WAIVE ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION OR PROCEEDING (I) BROUGHT BY EITHER PARTY OR ANY OTHER PARTY, RELATING TO (A) THIS AGREEMENT AND/OR ANY UNDERSTANDINGS OR PRIOR DEALINGS BETWEEN
THE PARTIES HERETO, OR (B) THE PROPERTY OR ANY PART THEREOF, OR (II) TO WHICH SELLER IS A PARTY. THE PARTIES HEREBY ACKNOWLEDGE AND AGREE THAT THIS AGREEMENT CONSTITUTES A WRITTEN CONSENT TO WAIVER OF TRIAL BY JURY PURSUANT TO ANY APPLICABLE
STATE STATUTES. 
 [Signatures on following page] 

  
 21 

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

			
	SELLER:
	
	 MREI III BAY CLUB, LLC,
 a
Delaware limited liability company

		
	By:	 	/s/ Jeff Goldberg
	Print:	 	Jeff Goldberg
	Its:	 	Co-President

  

			
	Date of Execution:	 	June 12, 2017

  

					
	PURCHASER:
	
	RESOURCE APARTMENT OP III, LP, a Delaware limited partnership
		
	By:	 	Resource Apartment REIT III, Inc., its general partner
			
		 	By:	 	/s/ Steven R. Saltzman
		 	Print:	 	Steven R. Saltzman
		 	Its:	 	CFO

  

					
	Date of Execution: June 12, 2017

  
 22 

 JOINDER OF THE TITLE COMPANY 

The Title Company hereby acknowledges receipt of the Escrow Deposit and a copy of this Agreement and agrees to hold and disburse the Escrow
Deposit in accordance with the provisions of this Agreement. It is expressly acknowledged and agreed to by the Title Company that in no event shall the joinder, consent, agreement or signature of the Title Company be necessary or required in
connection with any amendment, modification or termination of this Agreement. The Title Company is hereby directed to complete the Effective Date on the cover page and on page 1 of this Agreement in accordance with Section 7.19 of this
Agreement. 
  

			
	REPUBLIC TITLE OF TEXAS, INC.
		
	By:	 	 
	Print:	 	 
	Its:	 	 
		
	Date:	 	 

  
 23 

 EXHIBIT A 

Property Description 

[To be attached] 

  
 Exhibit A 

 EXHIBIT B 

Deed  
 PREPARED BY AND 

AFTER RECORDING RETURN TO: 
  

			
	 	 	
	 	 	
	 	 	

 Property Identification Number(s): [Insert Here] 

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM
ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER. 

SPECIAL WARRANTY DEED 

            , a(n)
            (“Grantor”), in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration in hand paid by
            , a(n)             (“Grantee”), the receipt and sufficiency of which are
hereby acknowledged, hereby GRANTS, BARGAINS, SELLS and CONVEYS unto Grantee the real property located in Duval County, Florida, which is more particularly described on Exhibit “A” attached hereto and made a part hereof,
together with (i) all and singular, all of Grantor’s right, title and interest, if any, in and to any and all rights, benefits, privileges, easements, tenements, and appurtenances thereon and pertaining thereto, including all of
Grantor’s right, title and interest, if any, in and to any adjacent streets, roads, alleys, easements and rights-of-way, (ii) any and all improvements and buildings located on such real property (said real property, together with such
rights, appurtenances and interests, improvements and buildings being collectively called the “Property”), subject to, however, the exceptions set forth in Exhibit “B” attached hereto and made a part
hereof (said exceptions being called the “Permitted Exceptions”). 
 TO HAVE AND TO HOLD the Property, subject to
the Permitted Exceptions, together with all and singular the rights and appurtenances thereto in anywise belonging unto Grantee, its successors and assigns forever. Grantor does hereby bind itself, and its legal representatives and successors to
WARRANT AND FOREVER DEFEND all and singular the Property unto Grantee, its successors and assigns, against every person whomever lawfully claiming or to claim the same or any part thereof, by or under Grantor, but not otherwise, and subject to the
Permitted Exceptions. 
 [Signatures on following page] 

  
 Exhibit B 

 EXECUTED to be effective as of the
            day of             , 20            .

  

					
	 	 	,
			
	By:	 	 	 	
	Print:	 	 	 	
	Its:	 	 	 	
		 		 	
		 		 	

STATE OF                        
                    § 

                        
                               § 

COUNTY OF                       
                § 
 This instrument was acknowledged
before me on the             day of             , 20        ,
by                        
,                                
of                         . 
  

							
		 		 		 	 
		 		 		 	 NOTARY PUBLIC IN AND FOR
 THE STATE
OF                

				
	 My Commission Expires:

 
	 		 		 	 
		 		 		 	(Printed Name of Notary)
		 		 		 	

 Grantee’s Address: 
  

			
	 	 	
	 	 	
	 	 	
	 	 	

 Exhibits to be attached 

  
 Exhibit B 

 EXHIBIT C 

Assignment 
 BILL
OF SALE AND ASSIGNMENT AND ASSUMPTION OF LEASES AND SERVICE CONTRACTS 
 This instrument (this “Agreement”) is
executed and delivered as of the         day of                     ,
20         (the “Effective Date”), by and between
                                    , a(n)
                                        
(“Seller”), and
                                        
, a(n)
                                        
(“Purchaser”), covering the real property described in Exhibit “A” attached hereto (the “Real Property”). 

 

	 	5.	Sale of Personalty. For good and valuable consideration, Seller hereby sells, transfers, sets over and conveys to Purchaser the following: 

 

	 	(5)	Tangible Personalty. All of Seller’s right, title and interest, if any, in and to the furniture, fixtures, equipment, interior appliances, machines, apparatus, supplies and tangible personal property of
every nature and description and all replacements thereof owned by Seller, if any, located in or on the Real Property and described on Exhibit “B” attached hereto; and 

(b) Intangible Personalty. To the extent transferable without the consent of third parties, all of Seller’s right, title and
interest, if any, in and to the intangible property that is owned by Seller and appurtenant to the ownership, operation, maintenance, and use of the Real Property including, without limitation, all of the rights of Seller to the following to the
extent that they are specific to the Real Property and no other real property (i) the use of the name “Bay Club” and any other trade names, trademarks, logos and symbols associated with or used in connection with the Real Property,
(ii) telephone and facsimile numbers owned or maintained by or on behalf of Seller with respect to the Real Property, (iii) all web addresses, domain names and URLs as well as all social media accounts and logo, photo, video and e-brochure
files with respect to the Real Property and (vi) any guaranties, warranties or miscellaneous transferable rights related to the Real Property, without warranty as to exclusivity or otherwise. 

2. Assignment of Leases and Contracts. For good and valuable consideration, Seller hereby assigns, transfers, sets over and conveys to
Purchaser, and Purchaser hereby accepts and assumes the following: 
  

	 	(5)	Leases. All of the Seller’s right, title and interest, if any, in and to the unexpired leases or other occupancy agreements (the “Leases”) covering the Real Property, as set forth on
the Rent Roll attached hereto as Exhibit “C”, and Purchaser hereby assumes all of the Seller’s obligations under the Leases; 

(b) Service Contracts. All of the Seller’s right, title and interest, if any, under all contracts described on Exhibit
“D” attached hereto (the “Service Contracts”), and Purchaser hereby assumes the obligations of Seller under the Service Contracts. 

  
 Exhibit C 

 3. Purchase and Sale Agreement. The rights, titles and interests conveyed pursuant to this
Agreement are subject to the terms, provisions and agreements set forth in Section 1.04(c) of that certain Agreement of Purchase and Sale, dated
                         , 20    , made and entered into by and between Seller and
Purchaser, as the same may have been amended, modified and/or assigned. 
 4. Indemnification. Seller shall defend, indemnify and
hold Purchaser harmless from and against any causes of action, claims, damages, demands, liabilities, losses, costs and, expenses including, without limitation, attorneys’ fees and court costs, asserted against, suffered or incurred by
Purchaser by reason of the failure of Seller to fulfill, perform, discharge, and observe its obligations under the Leases or under the Service Contracts accruing before the Effective Date. The foregoing notwithstanding, this indemnification shall
not apply to any cost, liability, damage or expense in any way caused by or relating to the physical condition of the Property and shall be subject in all respects to Paragraph 3 above. Purchaser shall defend, indemnify and hold Seller
harmless from and against any causes of action, claims, damages, demands, liabilities, losses, costs and, expenses including, without limitation, attorneys’ fees and court costs, asserted against, suffered or incurred by Seller by reason of the
failure of Purchaser to fulfill, perform, discharge, and observe its obligations under the Leases or under the Service Contracts accruing from and after the Effective Date. 

5. Counterparts. This instrument may be executed in any number of identical counterparts, all of which shall together constitute a
single original. 
 [Signatures on following page] 

  
 Exhibit C 

 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date
written above. 
  

							
	SELLER:	 		 	
		
	 	 	,

 
							
	a(n)	 	 

  

			
	By:	 	 

 
			
	Name:	 	 

 
			
	Title:	 	 

  

							
	PURCHASER:	 		 	
		
	 	 	,

 
							
	a(n)	 	 

  

			
	By:	 	 

 
			
	Name:	 	 

 
			
	Title:	 	 

 Exhibits to be attached 

  
 Exhibit C 

 EXHIBIT D 

Tenant Notice Letter 

                    ,
20         
  

	 	RE:	                        (the “Project”) 

Dear Tenant: 
 Please be advised that effective
                            , 20    ,
                                     has sold the Project to
                                        ,
a(n)                                 (“Purchaser”). Effective
                                         
   , 20__, your security deposit in the amount of $                         has been transferred to
Purchaser. Purchaser acknowledges that it has received and is responsible for your security deposit. 
 All future rental payments should be
sent to Purchaser at the following address: 
  
  

Any questions regarding maintenance and management of the Project should be addressed to Purchaser at the following address: 

 
  
  

									
					
	[Seller]	 		 		 	By:	 	                                      
                      ,
		 		 		 		 	                                      
                      

 
					
			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  

									
					
	[Purchaser]	 		 		 	By:	 	                                      
                      ,
		 		 		 		 	                                      
                      

 
					
			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  
 Exhibit D 

 EXHIBIT E 

Tangible Property 

  
 Exhibit E 

 EXHIBIT F 

Property Information 
 Critical
Items: 
  

	 	(1)	Monthly income statements for the Property beginning December 2015 and through date of sale; 

  

	 	(2)	General Ledger for 2016 (full year) and 2017 (thru date of sale); 

  

	 	(3)	Copies of all real estate tax bills for 2015 and 2016 as well as any assessments or tax bills for 2017; 

  

	 	(4)	Copies of all property utility bills for past 12 months; 

  

	 	(5)	On-site access to all current Tenant Leases including any and all modifications, supplements or amendments thereto and all tenant lease files; as well as all leases that were in effect during any time in 2016.

 Other Items: 
  

	 	(6)	Copies of all utility contracts if applicable; 

  

	 	(7)	Current notices to vacate report (which information/report shall be included on the Rent Roll); 

  

	 	(8)	A schedule of all tenant deposits in the form customarily utilized by Seller; 

  

	 	(9)	Access at the Property to all maintenance and service logs for the Property; 

  

	 	(10)	To the extent available at the property, copies of or access to any and all site plans, as-built, boundary and topographical surveys of the Property, zoning reports, soil and compaction studies or tests for the
Property, architectural drawings, plans and specifications with respect to the Property; 

  

	 	(11)	Insurance loss runs during the period of Seller’s ownership of the Property; 

  

	 	(12)	Most recent elevation certificates (if available); 

  

	 	(13)	To the extent available, copies of all guaranties or warranties currently in effect related to the roof or any structure or operating system at the Property; 

 

	 	(14)	A list of employee units and model/office units, and employee rental and discount information; 

  

	 	(15)	A schedule of capital improvements completed during the period of Seller’s ownership; 

  
 Exhibit F 

	 	(16)	List of all personal property to be conveyed with the Property; 

  

	 	(17)	To the extent available, the most recent tax, license fee and permits and copies of all such licenses and permits, including the certificates of occupancy; 

 

	 	(18)	List of current employees of the Property and payroll; 

  

	 	(19)	Copies of current tenant utility billing reports (RUBS); 

  
 Exhibit F 

 EXHIBIT G 

Rent Roll 

  
 Exhibit G 

 EXHIBIT H 

Service Contracts 

  
 Exhibit H 

 SCHEDULE 4.03(e) 

  
 Schedule 4.02(e)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]