Document:

Trimeris, Inc. Severance Pay Plan

 Exhibit 10.1 
 Plan Document and 
 Summary Plan Description For 
 TRIMERIS, INC. 
 SEVERANCE PAY PLAN

 As Amended and Restated 
 Effective December 3, 2006 

 INTRODUCTION 
 Trimeris, Inc. (hereinafter “the Company”) established this Severance Pay Plan (the “Plan”) as a discretionary program designed to assist eligible employees of the Company who are displaced or whose employment is
terminated. Except as expressly provided herein, this amendment and restatement applies to eligible employees displaced or terminated on or after November 1, 2006. The primary purpose of the Plan is to ease the transition to new employment and
to minimize the financial hardship that might result when eligible employees lose their jobs through no fault of their own. 
 This Plan Document and Summary
Plan Description describes when you may be eligible for severance benefits and what amount of benefits you may receive. Please note, however, that the Administrator of the Severance Pay Plan has full discretion in determining severance benefits, and
the Administrator may, in its discretion, determine that an otherwise eligible employee will not receive severance benefits. 
 You should read this Plan
Document and Summary Plan Description carefully. If you have any questions about the Plan, you should contact the Administrator (see the section entitled “Plan Administration” below). 
 BECOMING A PLAN PARTICIPANT 
 Participation in the Plan is
limited to individuals who are common law employees of the Company, as reflected on the payroll records of the Company. However, any Company officer who has entered into a written employment agreement with the Company is not eligible to participate.

 PLAN COST 
 The Company will pay the entire cost
of all benefits provided under the Plan, solely from its general assets. The Plan is “unfunded,” and no employee is required to make any contribution to the Plan. 
 WHEN SEVERANCE BENEFITS ARE PAID 
 Terminations Covered under the Plan 
 The Administrator may, in its discretion, award severance benefits to you under the Plan if the Company terminates your employment on or after the Plan’s effective
date. You will not have any vested right to severance benefits unless and until the Administrator awards such benefits to you and you satisfy all of the conditions for receiving such benefits. 
 Terminations Not Covered under the Plan 
 The Company will not pay you
severance benefits under this Plan if: 
  

	 	•	 	You retire, resign, or otherwise voluntarily quit your employment without the Company’s consent; 

	 	•	 	You are a temporary employee or intern; 

  

	 	•	 	You are an officer of the Company and your employment is covered by a written employment agreement with the Company; 

  

	 	•	 	You do not sign the Severance Election and Release form agreeing to waive all claims against the Company and certain other parties; or 

  

	 	•	 	The Administrator otherwise determines, in its discretion, that the payment of severance benefits is not appropriate. 

 In addition, if you have a written employment or severance contract with the Company, and the contract provides for the payment of severance, salary continuation or
similar benefits following termination of your employment, you will not be entitled to benefits under this Plan unless the Administrator determines that special circumstances warrant supplementing your benefits under the contract. 
 Severance or Separation Benefits under Other Arrangements 
 The Plan
replaces any and all prior severance pay plans, policies, or practices (written or otherwise) that existed as of the original effective date of this Plan or may have existed prior to such effective date. However, if you have a written employment or
severance contract with the Company, this Plan does not replace or supercede the terms of that contract. 
 Any benefits to which you may be entitled under
this Plan are separate from and in addition to benefits to which you may be entitled under the retirement, deferred compensation, change in control, fringe benefit and insurance plans or arrangements maintained by the Company. Your eligibility for
benefits under any such Company plan or arrangement shall be determined in accordance with the written terms and provisions of such other plan or arrangement. 
 Severance Election and Release Form 
 Severance benefits under this Plan are discretionary, and in any event you will not be entitled to any
severance benefits under this Plan unless you sign and return to the Company the severance election, release and waiver form and do not revoke your signature. When you sign this form, you will be giving a complete, binding release and waiver of any
and all legal claims you may have as of the date of the release relating to your employment with the Company or any related entity. The release and waiver will cover claims under federal and state law, including but not limited to: 
  

	 	•	 	claims of discrimination of any kind, including claims under the Age Discrimination in Employment Act 

  

	 	•	 	claims of wrongful discharge, constructive discharge, retaliation or any other improper conduct occurring during your employment or leading to termination of your employment

  

 2 

	 	•	 	claims based on violations of federal or state statutes or other laws or court decisions or other legal precedents relating in any way to employment, terms and conditions of
employment, or termination of employment (examples include the Americans with Disabilities Act, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Retaliatory Employment Discrimination Act, state wage and hour
laws, and the Employee Retirement Income Security Act) 

  

	 	•	 	claims based on the United States Constitution or any state constitution 

 The Administrator shall have complete discretion to determine the form and content of the severance election, release and waiver (the “Severance Election and Release”). The Administrator shall also have complete discretion to
condition the receipt of severance benefits on compliance with such other covenants as the Administrator deems necessary or appropriate to protect the reasonable business interests of the Company, and such covenants may be included in the Severance
Election and Release. Examples of such other covenants include, but are not limited to, agreements not to compete, agreements to protect the confidentiality of Company information, or agreements to respect the patents, trademarks and other
intellectual property of the Company. 
 If the Administrator determines that you will be offered severance benefits under this Plan, the Administrator will
give you a copy of the Severance Election and Release form when your employment is terminated, and will give you either 21 or 45 days, depending on the circumstances, to decide whether you want to waive any such claims in return for those severance
benefits. You should consult with an attorney to assist you in making your decision. 
 THE AMOUNT AND TIMING OF YOUR SEVERANCE PAY 

Subject to the limitations set forth herein, the Administrator of the Plan has full and complete discretion to determine the amount, nature and timing of severance
benefits under this Plan, and the Administrator may, in its discretion, determine that an otherwise eligible employee will receive no severance benefits upon the termination of his or her employment. There is no severance formula entitling you to a
certain amount of severance benefits. 
 General Rules 
 Except as expressly provided below, any severance benefit awarded under the Plan after 2004 will be paid or otherwise delivered to you in full by the Plan’s Payment Deadline. The “Payment Deadline” is the later of:

  

	 	•	 	March 15 immediately following the end of the calendar year in which the Administrator offers you a severance award; or 

  

	 	•	 	The 15th day of the third month immediately
following the end of the Company’s fiscal year in which the Administrator offers you a severance award. 

 The Company in its sole
discretion may provide the benefit in a single sum or in installments. 
  

 3 

 Normally, severance benefits under the Plan will not exceed six month’s pay, or one-half the employee’s
annualized Base Salary as of the date of his or her termination of employment, but the Administrator has the discretion to award a larger amount. Under no circumstances, however, will severance benefits under the Plan ever exceed the limitations
specified in subparagraphs (ii) or (iii) of Department of Labor Regulation Section 2510.3-2(b)(1). “Base Salary” means your base gross weekly salary, if you are a salaried employee, or your average weekly wages, if you are
not a salaried employee, determined immediately prior to termination. Base Salary shall not include bonus or incentive pay, overtime pay, relocation allowances or the value of any other benefits for which you may be eligible. If you are not a
salaried employee, your average weekly wages shall be based on your hourly wage rate at termination multiplied by your average number of hours worked in a week, as determined by the Administrator in its discretion. 
 Severance benefits shall be subject to applicable withholding, including withholding for federal, state and local income taxes and for FICA. 
 Amount and Timing of Severance Benefits Following Involuntary Separation from Service 
 The Administrator may extend the Payment Deadline until the end of the second calendar year following your termination, but only if: 
  

	 	•	 	Your termination qualifies as an involuntary separation from service; and 

  

	 	•	 	The total value of your severance benefits does not exceed the lesser of (i) two times the taxable wages paid to you by the Company in the calendar year prior to your
termination, and (ii) two times the applicable compensation limit under Internal Revenue Code Section 401(a)(17) for the year preceding the year of your termination (i.e., $440,000 in 2006, based on the 2005 limit).

 Your termination will qualify as an involuntary separation from service only if the Company terminates your employment and as a result of
the termination you are no longer providing services for the Company or any of its affiliates in any capacity. 
 RETENTION OF BENEFITS

 Your eligibility to continue participating in the Company’s group insurance programs and retirement plans following your termination of
employment will be determined in accordance with the written terms and provisions of those programs and plans. 
 COBRA 
 The Consolidated Omnibus Budget Reconciliation Act of 1985 (known as “COBRA”) is a federal law that requires that you be allowed to continue certain benefits
following your termination from employment. At the time of your termination or, if later, the termination of your coverage, the Company will provide you with information regarding your rights under COBRA and your ability to convert your coverages.

 DEATH BENEFIT 
  

 4 

 In the event of your death prior to receiving full payment of any severance benefits under this Plan, the present value
of any remaining payments due shall be paid in a lump sum to your estate no later than the Plan’s Payment Deadline. Present value shall be determined by assuming a 5% interest rate. 
 PLAN ADMINISTRATION 
 Named Fiduciaries 
 The Administrator and the Appeals Administrator named below shall be the “named fiduciaries” of the Plan. 
 Administrator 
 The Administrator of the Plan shall be the Company’s Chief Financial Officer. 
 The Administrator shall have all powers necessary or helpful to administering the Plan in all its details, and shall have full discretionary authority in exercising such
powers. This authority includes, but is not limited to, the power: 
  

	 	•	 	To make rules and regulations for the administration of the Plan and transaction of the Plan’s business; 

  

	 	•	 	To decide who is eligible for benefits under the Plan and to determine the amount of such benefits, and to administer the Plan’s claim procedures; 

  

	 	•	 	To make any finding of fact necessary or appropriate for any purpose under the Plan, including, but not limited to, the determination of eligibility for and the amount of any
benefit payable under the Plan; and 

  

	 	•	 	To interpret the terms and provisions of the Plan and to determine any and all questions arising under the Plan or in connection with its administration. This authority shall
include, but is not limited to, the right to remedy or resolve possible ambiguities, inconsistencies, or omissions, by general rule or particular decision. 

 The Administrator shall exercise the powers conferred by this Plan in its sole and absolute discretion, and all its acts and determinations will be final and binding upon all interested parties. 
 Notwithstanding the foregoing, the Chief Financial Officer shall have no authority to award or determine the amount of severance benefits under the Plan for himself or
for any of the Company’s top five “named executive officers” (as determined under applicable federal securities laws). The Compensation Committee of the Company’s Board of Directors shall act as the Administrator in making any
award to, or determining the amount of, severance benefits for the Chief Financial Officer or for any “named executive officer”. 
 If for any
reason you are not satisfied with how you have been treated under this Plan, please note that you must exhaust the claims and appeal procedures set forth below before filing suit for benefits. 
  

 5 

 Benefit Claims Procedures 
 You (or your authorized representative) have the right to make a claim for benefits under this Plan by submitting a written notice of your claim with the Administrator. If all or part of your claim for benefits is denied, the Administrator
will notify you in writing or electronically of the specific reasons for the denial of your claim. The notice will refer to the appropriate Plan provision on which the denial is based, describe any additional material or information necessary for
you to perfect the claim and explain why such material or information is necessary. The notice will also describe how claims are reviewed and outline the steps for an appeal (including applicable time periods), and will include a statement of your
rights to bring a civil action following an adverse determination on appeal. 
 Usually the Administrator will give you written notice of its decision within
90 days of receipt of your claim. However, the Administrator may in some cases require additional time (not more than 90 additional days) to complete its review, due to special circumstances. The Administrator will notify you before the end of the
initial 90-day review period if additional time is required for review of your claim. This notice will indicate the special circumstances requiring an extension, and the date by which the Administrator expects to render its decision. 
 Appeal Procedures 
 If you disagree with the Administrator’s
decision, you (or your authorized representative) may appeal and request a review of your case by the Company’s Appeals Administrator. The Appeals Administrator of the Plan shall be the Company’s Chief Executive Officer. However, the
Company’s Board of Directors shall act as the Appeals Administrator in reviewing any appeal requested by any “named executive officer”. 
 You
must request a review of your claim in writing within 60 days after the Administrator notifies you of its decision on your claim. Your request must state why you disagree with the Administrator’s decision, and you may include any information,
documents, records, questions, or comments to support your appeal. You or your authorized representative shall have reasonable access to and may copy (free of charge) Plan documents and any other documents relevant to your claim. 
 The Appeals Administrator will review your appeal, taking into consideration all comments, documents, records and other information submitted by you or your authorized
representative, even if such information was not submitted to or considered by the Administrator in the initial claim. The Appeals Administrator will notify you (or direct the Administrator to notify you) of its decision within 60 days after receipt
of your appeal; however, the Appeals Administrator may in some cases require additional time (not more than 60 additional days, except as otherwise permitted by applicable Department of Labor regulations) to complete its review, due to special
circumstances. The Appeals Administrator will notify you (or direct the Administrator to notify you) before the end of the initial 60 day review period if additional time is required for review of your appeal. This notice will indicate the special
circumstances requiring an extension, and the date by which the Appeals Administrator expects to render its decision. 
  

 6 

 The Appeals Administrator will notify you (or direct the Administrator to notify you) in writing or electronically of its
final decision and, if the decision is adverse to you the notice will include the specific reasons for the decision, reference to the Plan provisions on which the decision is based, and a statement that you are entitled to receive upon request and
free of charge, reasonable access to and copies of all documents, records and other information relevant to your claim. The notice will also include a statement of your rights to bring a civil action for benefits. 
 In making any determination on an appeal, the Appeals Administrator shall have all of the powers of the Administrator as set forth above, including but not limited to
all powers necessary or helpful to administering the Plan in all its details, and the Appeals Administrator shall have full discretionary authority in exercising such powers. 
 Filing Suit for Benefits 
 If you have a claim for benefits that is denied or ignored, in whole or in part, you may
file suit in a state or federal court. However, in order to do so, you must file the suit no later than 180 days after the Appeals Administrator makes a final determination to deny your claim. You must also exhaust your administrative remedies under
the Plan (including the claim and appeal procedures outlined above) before bringing a civil action. 
 OTHER THINGS YOU NEED TO KNOW

 Nature of the Plan 
 This Plan has been drafted
as a guideline for providing severance benefits at the discretion of the Administrator. The Company shall have no legal obligation under this Plan to pay severance benefits except as determined by the Administrator in accordance with the provisions
of this Plan. The Plan shall not be construed to form a contract of employment between the Company and any employee, and shall not otherwise alter the employment at will status of any employee. 
 Amendment or Termination of the Plan 
 The Company reserves the right
to terminate the Plan or to amend any Plan provision. The Plan may be amended or terminated by a written instrument authorized by the Company’s Compensation Committee and signed by an executive officer of the Company. 
 Changing Your Address 
 You should notify the Administrator in writing
of any change of address. If the Administrator does not have your most recent address on file and cannot locate you, benefit payments may be delayed. 
 Other Plans 
 This document is not intended to describe the provisions or administrative practices of any other benefit plans or
arrangements. Any benefit rights that exist under any benefit plans other than this Plan must be determined solely in accordance with the terms and administrative practices of such other plans. 
  

 7 

 Applicable Law 
 To
the extent not preempted by ERISA, the Plan shall be governed by and construed according to the laws of the state of North Carolina. 
 Severability

 If a provision of this Plan shall be held illegal or invalid, the legality or invalidity shall not affect the remaining provisions of the Plan, and the
Plan shall be construed and enforced as if the illegal or invalid provision had not been included in the Plan. 
 Your Rights under ERISA 

As a participant in the Plan, you are entitled to certain rights and protections under ERISA. 
  

	 	•	 	You may examine all Plan documents without charge. These may include annual financial reports, plan descriptions, and other official Plan documents filed with the United States
Department of Labor, if any. 

  

	 	•	 	You may obtain copies of Plan documents and certain other information, such as a copy of the Plan’s most recently filed annual report, by writing to the Administrator. The
Administrator may impose a reasonable charge for the copies. 

 In addition to creating rights for Plan participants, ERISA imposes certain
duties on the people who are responsible for operating the Plan. These people are called “fiduciaries.” The fiduciaries have a duty to operate the Plan prudently and in the interest of Plan participants. No one, including the Company, may
fire you or otherwise discriminate against you in any way to prevent you from obtaining a severance benefit or exercising your rights under ERISA. 
 Under
ERISA, you can take the following steps to enforce your rights: 
  

	 	•	 	If you request a copy of the Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case,
the court may require the Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent due to reasons beyond the control of the Administrator. 

  

	 	•	 	If your claim for benefits is denied or ignored in whole or in part, you may file suit in federal court. 

  

	 	•	 	If you are discriminated against for pursuing a benefit or exercising your ERISA rights, you may seek help from the United States Department of Labor or file suit in a federal
court. 

 If you file a suit against the Plan, the court will decide who should pay court costs and legal fees. If you win your suit, the court
may order the person you sued to pay the court costs and legal fees. If you lose your suit, the court may order you to pay the costs and fees if, for example, the court decides your suit was frivolous. 
  

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 If you have any questions about your Plan, you should contact the Administrator. If you have questions about this
statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Administrator, you should contact the nearest area office of the Employee Benefits Security Administration, United States Department of Labor,
listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, United States Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain
publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. 
  

 9 

 MISCELLANEOUS INFORMATION 
 This section provides general information about the Plan required by the Employee Retirement Income Security Act of 1974 (ERISA). 
  

			
	Plan Sponsor:	  	Trimeris, Inc.
		  	3500 Paramount Parkway
		  	Morrisville, NC 27560
		  	(919) 419-6050
		
	Plan Name:	  	Trimeris, Inc. Severance Pay Plan.
		  	 The Severance Pay Plan is a component
 of the Trimeris,
Inc. Welfare and Insurance
 Benefit Program.

		
	Administrator:	  	Severance Plan Administrator
		  	c/o Trimeris, Inc.
		  	3500 Paramount Parkway
		  	Morrisville, NC 27560
		  	(919) 419-6050
		  	Attention: Elinor Munsch
		
	Appeals Administrator:	  	Severance Plan Appeals Administrator
		  	c/o Trimeris, Inc.
		  	3500 Paramount Parkway
		  	Morrisville, NC 27560
		  	(919) 419-6050
		  	Attention: Elinor Munsch
		
	Plan Number:	  	501
		
	Plan Year:	  	Calendar Year
		
	Plan Type:	  	Welfare Benefit Plan
		
	Original Effective Date:	  	July 1, 2003
		
	 Effective Date of Amendment
 and
Restatement:
	  	November 1, 2006
		  	(except as otherwise stated)
		
	 Agent For Service
 of Legal Process:
	  	Chief Financial Officer/General Counsel
		  	Trimeris, Inc.
		  	3500 Paramount Parkway
		  	Morrisville, NC 27560
		  	(919) 419-6050

  

 10 

 ADOPTION OF THE PLAN 
 For the purpose of evidencing the adoption of this amended and restated Severance Pay Plan, the undersigned officer has executed this Plan Document and Summary Plan Description on behalf of Trimeris, Inc. this 3rd day of December, 2006.

  

			
	Trimeris, Inc.
		
	By:	 	 /s/ Dani P. Bolognesi

		 	Authorized Officer

  

 11Membership Interest Purchase and Sale Agreement

 EXHIBIT 10.1 
 Execution Copy 
  

 MEMBERSHIP INTEREST 
 PURCHASE AND SALE AGREEMENT 
 BY AND AMONG 
 PRIP 10637, LLC,

 a Delaware limited liability company 
 AS PURCHASER, 
 SHILOH CROSSING PARTNERS II, LLC, 
 an Indiana limited liability company 
 AS SELLER 
 AND 
 GLENWOOD HOUSING PARTNERS I, LLC, 
 an Indiana limited liability company, 
 AS THE COMPANY 
 As of
December 1, 2006 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE
	ARTICLE 1 PURCHASE AND SALE	  	1
	    1.1	  	Agreement of Purchase and Sale of Membership Interest	  	1
	    1.2	  	Company Property	  	1
	    1.3	  	Property Defined	  	2
	    1.4	  	Permitted Exceptions	  	2
	    1.5	  	Purchase Price	  	2
	    1.6	  	Payment of Purchase Price	  	3
	    1.7	  	Deposit	  	3
		
	ARTICLE 2 TITLE AND SURVEY	  	3
	    2.1	  	Title Insurance; Survey	  	3
	    2.2	  	Title to the Property	  	3
		
	ARTICLE 3 INSPECTION PERIOD	  	4
	    3.1	  	Right of Inspection of the Property	  	4
		
	ARTICLE 4 CLOSING	  	5
	    4.1	  	Time and Place	  	5
	    4.2	  	Seller’s Obligations at Closing	  	5
	    4.3	  	Purchaser’s Obligations at Closing	  	6
	    4.4	  	Credits and Prorations	  	6
	    4.5	  	Closing Costs	  	8
	    4.6	  	Conditions Precedent to Obligation of Purchaser	  	8
	    4.7	  	Conditions Precedent to Obligation of Seller	  	10
	    4.8	  	Certain Tax Definitions	  	10
		
	ARTICLE 5 REPRESENTATIONS, WARRANTIES AND COVENANTS	  	11
	    5.1	  	Representations and Warranties of Seller Primarily Relating to the Membership Interest and the Company	  	11
	    5.2	  	Representations and Warranties of Seller Primarily Relating to the Property	  	15
	    5.3	  	Survival of Seller’s Representations and Warranties	  	18
	    5.4	  	Representations and Warranties of Purchaser	  	18
	    5.5	  	Survival of Purchaser’s Representations and Warranties	  	18
	    5.6	  	Indemnification by Seller	  	19
	    5.7	  	Execution by Chambers and Buckingham	  	19
	    5.8	  	Covenants of Seller	  	19
		
	ARTICLE 6 DEFAULT	  	23
	    6.1	  	Default by Purchaser	  	23
	    6.2	  	Default by Seller	  	23
	    6.3	  	Notice of Default; Opportunity to Cure	  	23
	    6.4	  	Recoverable Damages	  	23

  

 - i - 

					
	ARTICLE 7 CASUALTY AND CONDEMNATION	  	24
	7.1	  	Casualty or Condemnation	  	24
	7.2	  	Notice of Condemnation or Casualty	  	24
		
	ARTICLE 8 COMMISSIONS	  	24
	8.1	  	Representation and Indemnity	  	24
	8.2	  	Survival	  	25
		
	ARTICLE 9 ESCROW AGENT	  	25
	9.1	  	Investment of Deposit	  	25
	9.2	  	Payment at Closing	  	25
	9.3	  	Payment on Demand	  	25
	9.4	  	Exculpation of Escrow Agent	  	25
	9.5	  	Stakeholder	  	26
	9.6	  	Interest	  	26
	9.7	  	Execution by Escrow Agent	  	26
		
	ARTICLE 10 MISCELLANEOUS	  	26
	10.1	  	Confidentiality and Public Disclosure	  	26
	10.2	  	Assignment	  	27
	10.3	  	Notices	  	27
	10.4	  	Modifications	  	28
	10.5	  	Calculation of Time Periods	  	28
	10.6	  	Successors and Assigns	  	28
	10.7	  	Entire Agreement	  	28
	10.8	  	Further Assurances	  	28
	10.9	  	Counterparts	  	29
	10.10	  	Severability	  	29
	10.11	  	Applicable Law	  	29
	10.12	  	No Third Party Beneficiary	  	29
	10.13	  	Exhibits and Schedules	  	29
	10.14	  	Captions	  	30
	10.15	  	Construction	  	30
	10.16	  	Termination of Agreement	  	30
	10.17	  	Survival	  	30
	10.18	  	Time of Essence	  	30

  

 - ii - 

 MEMBERSHIP INTEREST PURCHASE AND SALE AGREEMENT 
 THIS MEMBERSHIP INTEREST PURCHASE AND SALE AGREEMENT (this “Agreement”) is
made as of December 1, 2006 (the “Effective Date”), by and among PRIP 10637, LLC, a Delaware limited liability company
(“Purchaser”), SHILOH CROSSING PARTNERS II, LLC, an Indiana limited liability company (“Seller”), and GLENWOOD HOUSING PARTNERS I, LLC, an Indiana limited liability company
(the “Company”). 
 BRADLEY B. CHAMBERS, a resident of the State of Indiana (“Chambers”),
BUCKINGHAM INVESTMENT CORPORATION, an Indiana corporation (“Buckingham”), and ICE MILLER LLP (“Escrow Agent”) are parties to this Agreement for the limited purposes set forth herein 
 WITNESSETH: 
 ARTICLE 1 
 PURCHASE AND SALE 
 1.1
Agreement of Purchase and Sale of Membership Interest. Subject to the terms and conditions hereinafter set forth, Seller agrees to sell, transfer, assign, set over and convey, or cause to be conveyed, to Purchaser on the Closing Date (as
hereinafter defined), and Purchaser hereby agrees to purchase from Seller on the Closing Date, such right, title and interest of Seller in and to its membership interests, and all other legal and equitable interests in the Company, such that
following said transfer Purchaser shall own sixty-five percent (65%) of all legal and equitable interests in the Company, free and clear of any and all liens, encumbrances and other interests (collectively, the “Membership
Interest”). 
 1.2 Company Property. Seller represents and warrants to Purchaser that the Company owns the following:

 (a) that certain tract or parcel of land located in Hamilton County, Ohio, and more particularly described on Schedule
1.2(a), attached hereto and by this reference made a part hereof (the property described in this clause (a) being herein referred to as the “Land”), together with any rights, easements and appurtenances pertaining to the
Land; 
 (b) the structures and other improvements (if any) on the Land (the property described in this clause (b) being
herein referred to as the “Improvements”, and the Land and the Improvements being hereinafter sometimes collectively referred to as the “Real Property”); 

 (c) all of the right, title and interest in, to and under all tangible personal property
upon the Land or within the Improvements, including specifically, without limitation, appliances, equipment, furniture, carpeting, draperies and curtains, tools and supplies, and other items of tangible personal property owned by the Company and
used exclusively in connection with the ownership, use, maintenance or operation of the Land and the Improvements, and including those items of tangible personal property identified on Schedule 1.2(c), attached hereto and incorporated herein
by this reference, but excluding (i) personal property owned by tenants under the Leases, (ii) any equipment installed by, or in connection with, any telecommunication or utility provider and which is owned by any party other than the
Company, and (iii) any items leased to the Company (the property described in this clause (c), other than the excluded items, being herein referred to collectively as the “Tangible Personal Property”). 
 (d) all of the right, title and interest as landlord or lessor in, to and under all agreements listed and described on Schedule
1.2(d) (the “Rent Roll”) attached hereto and made a part hereof, pursuant to which any portion of the Land or Improvements is used or occupied by anyone other than the Company (the property described in this clause (d)
being herein referred to collectively as the “Leases”); 
 (e) all right, title and interest as the owner in,
to and under (i) the contracts listed and described on Schedule 1.2(e) (the “Service Contracts”) attached hereto and made a part hereof, (ii) all existing warranties and guaranties issued to or inuring to the
benefit of the Company in connection with the Improvements or the Tangible Personal Property, and (iii) all governmental permits, licenses and approvals, if any, belonging to or inuring to the benefit of Company and pertaining to the Real
Property or the Tangible Personal Property (the property described in this clause (e) being sometimes herein referred to collectively as the “Intangible Property”. 
 1.3 Property Defined. The Land, the Improvements, the Leases and the Intangible Property are hereinafter sometimes referred to collectively
as the “Property.” 
 1.4 Permitted Exceptions. At Closing, Seller covenants that the Company shall hold good,
marketable and indefeasible title to the Property subject only to the matters which are, or are deemed to be, Permitted Exceptions pursuant to ARTICLE 2 hereof (herein referred to collectively as the “Permitted Exceptions”).

 1.5 Purchase Price. Seller is to sell, and Purchaser is to purchase, the Membership Interest for a total purchase price
of Four Million Sixty-Two Thousand Five Hundred Dollars ($4,062,500.00) (the “Purchase Price”). The Purchase Price shall be paid and allocated as follows: (i) Three Million Eight Hundred Thirty-Five Thousand Dollars
($3,835,000.00) shall be paid to Seller (subject to the prorations and adjustments hereinafter provided), (ii) Thirty-Two Thousand Five Hundred Dollars ($32,500.00) shall be paid to the Company to be used for the working capital
needs of the Company after the Closing, and (iii) the remainder of the Purchase Price shall be used to fund Purchaser’s pro rata share of the closing costs of the Company contemplated by Section 5.3(a). 
  

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 1.6 Payment of Purchase Price. The Purchase Price shall be payable in full at Closing in
cash by wire transfer of immediately available federal funds to a bank account of Ice Miller LLP, in its capacity as escrow agent (the “Escrow Agent”) designated by Escrow Agent in writing to Purchaser prior to the Closing

 1.7 Deposit. Within three (3) business days following the satisfaction of the condition set forth in
Section 4.6(e), Purchaser shall deposit with Escrow Agent the sum of Five Hundred Thousand Dollars ($500,000.00) by wire transfer of immediately available funds (the “Deposit”). The Escrow Agent shall invest the
Deposit pursuant to Purchaser’s directions and in accordance with the terms and conditions of ARTICLE 9. All interest accruing and other income earned on such sum shall become a part of the Deposit and shall be distributed as a part of
the Deposit in accordance with the terms of this Agreement. In any event, if Purchaser is entitled to have Deposit returned to Purchaser pursuant to any provision of this Agreement, then One Hundred Dollars ($100.00) of the Deposit
shall nevertheless be paid to Seller as good and sufficient consideration for entering into this Agreement. In addition, Seller acknowledges that Purchaser, in evaluating the Property and the Membership Interests and performing its due
diligence investigation of the Property and the Membership Interests, will devote internal resources and incur expenses, and that such efforts and expenses of Purchaser also constitute good, valuable and sufficient consideration for this Agreement.

 ARTICLE 2 
 TITLE AND
SURVEY 
 2.1 Title Insurance; Survey. Prior to the Effective Date, Seller has delivered to Purchaser its existing title
insurance policy number O-9993-11010656 insuring the Real Property (the “Title Policy”) issued by Stewart Title Guaranty Company (the “Title Company”). Prior to the Effective Date, Seller has also delivered to
Purchaser a current survey of the Real Property prepared by a licensed surveyor (such survey, as it may be subsequently updated or revised, the “Survey”). 
 2.2 Title to the Property. At Closing, the Company shall own good, marketable and indefeasible title to the Property, subject only the
Permitted Exceptions. It shall be a condition to Purchaser’s obligation to close this transaction that the Title Company shall have issued to Purchaser a current title report updating the status of title to the Real Property since the effective
date of the Title Policy (the “Title Update”) and confirming that the Company continues to own good, marketable and indefeasible title to the Property, subject only to the following matters (the “Permitted
Exceptions”): 
 (a) the lien of all ad valorem real estate taxes and assessments not yet due and payable as of the
Closing Date, subject to proration and adjustment as herein provided; 
 (b) the rights of tenants, as tenants only, under the
Leases described in the Rent Roll and any new Leases entered into between the Effective Date and Closing and (if required) approved by Purchaser in accordance with the terms of this Agreement; 
 (c) the matters set forth on Schedule B of the Title Policy; 
  

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 (d) the items shown on the Survey; and 
 (e) the documents evidencing and securing the Existing Financing (hereinafter defined). 
 ARTICLE 3 
 INSPECTION PERIOD

 3.1 Right of Inspection of the Property. 
 (a) From and after the Effective Date and so long as this Agreement remains in full force and effect, Purchaser, subject to the rights of
tenants at the Property, shall have the right to make a physical inspection of the Property, and Purchaser, personally or through agents, employees or contractors, may go upon the Property during normal business hours or at other reasonable times to
make boundary line or topographical surveys and to conduct such studies, tests, samplings, investigations and analyses of any and all aspects of the Property as Purchaser deems necessary or desirable, including, without limitation, engineering,
environmental, soil, and groundwater and other tests, samplings and studies of the Property. Purchaser’s environmental study of the Property may include, among other matters, studies of soil and groundwater contamination, asbestos,
polychlorinated biphenyls (PCBs), lead in drinking water, lead based paint, radon gas, and wetlands. Seller and the Company will provide Purchaser and its agents with access to the Property and will cooperate with Purchaser’s surveys, studies,
tests, samplings, investigations, and analyses. 
 (b) In addition to any other obligation to assist Purchaser in the
inspection of the Property, Seller hereby agrees to provide to Purchaser, within ten (10) days after the Effective Date, true and correct copies of all materials described on Schedule 3.1(b) attached hereto and by this reference made a
part hereof, to the extent Seller has not already done so and these materials are available to Seller, the Company, or any consultants employed by Seller or the Company, or are in the reasonable control of Seller, the Company, or any consultants
employed by Seller or the Company. 
 (c) Purchaser shall indemnify, hold harmless and defend the Company from and against any
and all claims, demands, causes of action, liabilities, losses, costs, damages and expenses (including reasonable attorneys’ fees and expenses and court costs incurred in defending any such claim or in enforcing this indemnity) of whatsoever
nature (individually, a “Claim,” and collectively, “Claims”) that may be incurred by the Company and arise out of or in connection with the acts or omissions of Purchaser and its agents, representatives, contractors
and consultants, or any of them in the inspection of the Property. Such Claims shall include, but are not limited to, Claims arising out of or in connection with personal injury or death of persons, loss, destruction or damage to property, or liens
or Claims of lien filed against the Property. Such Claims shall exclude, however, any Claims to the extent such Claims arise out of the discovery of, or the non-negligent, accidental or inadvertent actual or threatened 

  

 -4- 

 
release or movement of, any Hazardous Materials resulting from Purchaser’s inspections and other activities (unless the Hazardous Materials are brought
onto the Property by Purchaser or Purchaser’s authorized agents, employees, consultants or contractors). Purchaser shall backfill all trenches, fill holes and similarly repair damage and eliminate dangerous conditions created during its
inspections, tests, and studies, whether such conditions are created by the Purchaser or any of its agents, employees, contractors, or consultants. This Section 3.1(c) shall survive any termination of this Agreement. 
 ARTICLE 4 
 CLOSING 

4.1 Time and Place. The consummation of the transaction contemplated hereby (“Closing”) shall be held in escrow at the
offices of the Escrow Agent in Indianapolis, Indiana at 10:00 a.m. (eastern time) on or before December 1, 2006 (or such extended date as may be provided under other provisions of this Agreement). The Closing may be held at such other place or
such earlier time and date as Seller and Purchaser shall mutually approve in writing. The date on which the Closing is scheduled to occur hereunder (or, if earlier, the date on which Closing occurs) is sometimes referred to herein as the
“Closing Date”. Notwithstanding the foregoing provisions of this Section 4.1, Purchaser shall have the right to extend the Closing Date for up to an additional thirty (30) period by (i) giving written notice to Seller
at least three (3) days prior to the initial Closing Date specifying the extended Closing Date. 
 4.2 Seller’s Obligations
at Closing. At Closing, Seller shall: 
 (a) deliver to Purchaser an Assignment of Membership Interest in the form
attached hereto as Schedule 4.2(a) and by this reference made a part hereof, duly executed by Seller with respect to the Membership Interest; 
 (b) deliver to Purchaser an amendment to the articles of organization of the Company in a form prepared by Purchaser and approved by Seller, such approval not to be unreasonably withheld (the “Articles
Amendment”); 
 (c) execute and deliver to Purchaser an Amended and Restated Operating Agreement of Glenwood Housing
Partners I, LLC (the “Restated Operating Agreement”) substantially in the form attached hereto as Schedule 4.2(c); 
 (d) deliver to Purchaser written resignation from any manager or officer of the Company; 
 (e) execute and deliver to Purchaser a closing statement, prepared by Seller and approved by Purchaser, consistent with the terms of this Agreement; 
  

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 (f) execute and deliver to Purchaser a certificate (“Seller’s Closing
Certificate”), dated as of the Closing Date, in the form of attached hereto as Schedule 4.2(f) and by this reference made a part hereof, stating that the representations and warranties of Seller contained in Sections 5.1 and 5.2
of this Agreement are true and correct in all material respects as of the Closing Date; 
 (g) cause Glenwood Housing Partners
II LLC, an Indiana limited liability company and an affiliate of Seller, to execute and deliver to Purchaser an Option Agreement in the form attached hereto as Schedule 4.2(g); 
 (h) deliver to Purchaser an updated Rent Roll, certified by the Company’s Property Manager to be true and correct in all material
respects; and 
 (i) execute and deliver to Purchaser an affidavit of Seller stating that each Seller is not a “foreign
person” as defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and the 1984 Tax Reform Act. 
 4.3 Purchaser’s Obligations at Closing. At Closing, Purchaser shall: 
 (a) deliver to the Escrow
Agent the full amount of the Purchase Price, as increased or decreased by prorations and adjustments as herein provided, in immediately available federal funds wire transferred to an account designated in writing by Escrow Agent as set forth in
Section 1.6 (“Escrow Agent’s Account”), and, as adjusted by prorations and adjustments as herein provided, shall be subsequently payable in full at Closing in cash by wire transfer of immediately available federal funds to
a bank account designated by Seller in writing to Escrow Agent prior to the Closing; 
 (b) execute and deliver to Seller such
evidence as Purchaser’s counsel and/or the Title Company may reasonably require as to the authority of the person or persons executing documents on behalf of Purchaser; 
 (c) execute and deliver to Seller a closing statement, prepared by Seller and approved by Purchaser, consistent with the terms of this
Agreement; and 
 (d) execute and deliver the Restated Operating Agreement. 
 4.4 Credits and Prorations. 
 (a) If the transaction closes before 12:00 P.M. Eastern time on the Closing Date, all income and expenses in connection with the operation of
the Company and the Property shall be apportioned, as of 12:01 A.M., on the Closing Date, as if Purchaser were vested with ownership of the Membership Interest
during the entire Closing Date, and such that, except as otherwise expressly provided to the contrary in this Agreement, Seller (as owner of 100% of the outstanding membership interests in the Company) shall have the benefit of all income and the
burden of all expenses for all periods preceding the Closing Date. If the transaction closes after 12:00 P.M. Eastern Time on the Closing Date, all income and expenses in connection
with the operation of the Company and the Property shall be apportioned, as of 12:01 A.M., on the day after the Closing Date, as if Purchaser were
vested 

  

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with ownership of the Membership Interest during the entire day after the Closing Date, and such that, except as otherwise expressly provided
to the contrary in this Agreement, Seller (as owner of 100% of the outstanding membership interests in the Company) shall have the benefit of all income and the burden of all expenses for all periods preceding the day after the Closing
Date. Items (1)-(5) below will be prorated at Closing utilizing the information known at that time. A post-closing “true-up” shall take place within ninety (90) days of the Closing Date to adjust the prorations of said items (1), (3), (4)
and (5), if necessary, and within a reasonable time to adjust the proration of said item (2), if necessary. Such prorated items shall include, without limitation, the following: 
 (1) rents, if any, based on the amount collected for the current month. The term “rents” as used in this Agreement includes all
payments due and payable by tenants under the Leases other than refundable deposits, application fees, late charges, pet charges and termination payments (of which deposits shall remain the property of the Company); 
 (2) ad valorem taxes and assessments levied against the Property (including personal property taxes on the Tangible Personal Property),
which shall be prorated as set forth in Section 4.4(b)(1) hereof; 
 (3) payments under the Service Contracts;

 (4) accrued and unpaid interest on the Existing Financing; 
 (5) gas, electricity and other utility charges for which the Company is liable, if any, such charges to be apportioned at Closing
on the basis of the most recent meter reading occurring prior to Closing; and 
 (6) any other operating expenses or other
items pertaining to the Property which are customarily prorated between a purchaser and a seller in comparable commercial transactions in the area in which the Property is located. 
 (b) Notwithstanding anything contained in the foregoing provisions: 
 (1) Any ad valorem taxes paid at or prior to Closing shall be prorated based upon the amounts actually paid for the current tax year.
If all taxes and assessments for the current tax year have not been paid before Closing, then such apportionment shall be based upon the tax rate and/or assessed valuation last fixed. To the extent that the actual taxes and assessments
for the current tax year differ from the amount apportioned at Closing, the parties shall make all necessary adjustments by appropriate payments between themselves following Closing upon the availability of the final tax bills. 
 (2) Gas, electricity and other utility charges referred to in Section 4.4(a)(4) above which are payable by any tenant to a third
party shall not be apportioned hereunder. 
  

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 (3) Seller shall cause the Company to pay in full prior to the Closing all leasing
commissions and locators’ and finders’ fees, if any, due to leasing or other agents (pursuant to a contractual arrangement with the Company) for each Lease entered into by the Company prior to the Closing Date promptly when due. Trade
payables in the nature of open accounts payable to trade vendors or suppliers and all other accounts payable which have accrued prior to the Closing Date shall be the obligation of Seller. 
 (4) Unpaid and delinquent rent collected by the Company after the date of Closing shall be delivered as follows: (a) if the Company
collects any unpaid or delinquent rent for the Property relating to the date of Closing and any period thereafter, the Company shall distribute any such rent pursuant to the provisions of the Restated Operating Agreement, and (b) if the Company
collects any unpaid or delinquent rent from the Property relating to the period prior to the date of Closing, the Company shall, within fifteen (15) days after the receipt thereof, deliver to Seller any such rent which Seller is entitled to
hereunder. Seller and Purchaser agree that all rent received by the Company after the Closing shall be applied first to current rentals and then to delinquent rentals, if any, in inverse order of maturity. The Company will make a good faith
effort after Closing to collect all rents in the usual course of the Company’s operation of the Property, but the Company will not be obligated to institute any lawsuit or other collection procedures to collect delinquent rents. 
 (c) The provisions of this Section 4.4 shall survive Closing. 
 4.5 Closing Costs.  
 (a) The Company shall pay (i) the fees of counsel representing Seller and the fees of counsel representing Purchaser in connection with this transaction, (ii) any escrow fees charged by the Title Company, (iii) the
costs of recording all mortgage cancellations, if any, (iv) if applicable, any and all applicable transfer taxes, documentary stamp taxes, recordation taxes, and similar charges relating to the transfer of the Membership Interest, (v) the
cost of the Title Update, and (v) the cost of the Survey. Each of Seller and Purchaser, as members of the Company, will contribute to the Company its pro rata share of the funds necessary to enable the Company to pay such Closing Costs (with
Purchaser’s pro rata share being a part of the Purchase Price as contemplated by Section 1.5). 
 (b) Except as
otherwise provided herein, all other costs and expenses incident to this transaction and the closing thereof shall be paid by the party incurring same. 
 4.6 Conditions Precedent to Obligation of Purchaser. The obligation of Purchaser to consummate the transaction hereunder shall be subject to the fulfillment on or before the Closing Date (or such earlier
time as otherwise required hereby) of all of the following conditions, any or all of which may be waived by Purchaser in its sole discretion: 
 (a) All of the representations and warranties of Seller contained in this Agreement shall be true and correct in all material respects as of the Closing Date, as if made and updated as of the Closing Date (without any
reference to “knowledge”). 
  

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 (b) Seller shall have performed and observed, in all material respects, all covenants and
agreements of this Agreement to be performed and observed by Seller as of the Closing Date. 
 (c) Seller and Purchaser shall
have agreed upon the terms and provisions of, and shall have executed and delivered, the Restated Operating Agreement. 
 (d)
Purchaser shall have obtained (i) the written approval of the Federal Home Loan Mortgage Corporation (“FHLMC”), the holder of the Multifamily Deed of Trust, dated June 5, 2006, from the Company to P/R Mortgage and
Investment Corp., as assigned to FHLMC, recorded in Book 10118, Page 358, in the Hamilton County, Ohio Public Records, of the transactions contemplated by this Agreement and continuation of the existing mortgage loan secured by such Multifamily Deed
of Trust from and after Closing on the terms and conditions set forth in Schedule 4.6(d) attached hereto and made a part hereof and otherwise pursuant to any additional loan documentation in form and substance reasonably satisfactory to
Purchaser and duly executed and delivered by the Company and FHLMC (collectively, the “Existing Financing”) and (ii) a current estoppel certificate from FHLMC stating that there exists no default under the Existing Financing
and otherwise in form and substance reasonably satisfactory to Purchaser. 
 (e) $100,000 of the Purchase Price payable to
Seller pursuant Section 1.5(i) shall be deposited in escrow with Escrow Agent pursuant to an escrow agreement in form and substance reasonably satisfactory to Purchaser, which escrow Agent will provide that (i) such sum shall be delivered
to Seller only after completion of renovations of the two cottages on the Property so as to place such cottages in “rent-ready” condition and receipt of certificates of occupancy therefore and (ii) Seller and its principals (and not
the Company) shall pay all costs and expenses of such renovations. 
 (f) All other conditions precedent to Purchaser’s
obligation to consummate the transaction hereunder (if any) which are expressly set forth in this Agreement shall have been satisfied on or before the Closing Date. 
 In the event any of the foregoing conditions has not been satisfied by the Closing Date other than through failure of Purchaser to fully comply with its obligations under this Agreement, Purchaser shall have the right
to terminate this Agreement by written notice given to Seller on or promptly after the Closing Date, whereupon Escrow Agent shall refund the Deposit to Purchaser and the parties shall have no further rights, duties or obligations hereunder, other
than those which are expressly provided herein to survive the termination of this Agreement; provided, however, that if any of the foregoing conditions has not been satisfied due to a default by Purchaser or Seller hereunder, then Purchaser’s
and Seller’s respective rights, remedies and obligations shall instead be determined in accordance with ARTICLE 6. 
  

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 4.7 Conditions Precedent to Obligation of Seller. The obligation of Seller to consummate
the transaction hereunder shall be subject to the fulfillment on or before the Closing Date of all of the following conditions, any or all of which may be waived by Seller in their sole discretion: 
 (a) The Company shall have received the Purchase Price as adjusted pursuant to and payable in the manner provided for in this Agreement.

 (b) Purchaser shall have delivered to Seller all of the items required to be delivered to Seller by Purchaser or
Purchaser’s agents pursuant to the terms of this Agreement. 
 (c) All of the representations and warranties of Purchaser
contained in this Agreement shall be true and correct in all material respects as of the Closing Date, as if made and updated as of the Closing Date. 
 (d) Purchaser shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be performed and observed by Purchaser as of the Closing Date. 
 (e) Seller and Purchaser shall have agreed upon the terms and provisions of, and shall have executed and delivered, the Restated Operating
Agreement. 
 (f) All other conditions precedent to Seller’s obligation to consummate the transaction hereunder (if any)
which are expressly set forth in this Agreement shall have been satisfied on or before the Closing Date. 
 In the event any
of the foregoing conditions has not been satisfied by the Closing Date other than through failure of Seller to fully comply with its obligations under this Agreement, Seller shall have the right to terminate this Agreement by written notice given to
Purchaser on or promptly after the Closing Date, whereupon Seller shall refund the Deposit to Purchaser and the parties shall have no further rights, duties or obligations hereunder, other than those which are expressly provided herein to survive a
termination of this Agreement; provided, however, that if any of the foregoing conditions has not been satisfied due to a default by Purchaser or Seller hereunder, then Purchaser’s and Seller’s respective rights, remedies and obligations
shall instead be determined in accordance with ARTICLE 6. 
 4.8 Certain Tax Definitions. 
 (a) For purposes of this Agreement, the following terms have the following meanings: 
 (1) “Tax” means any federal, state, local, or foreign income, gross receipts, license, payroll, employment, excise,
severance, stamp, occupation, premium, windfall profits, environmental, natural resources, customs, duties, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property, personal property, sales, use,

  

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transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or
addition thereto, whether disputed or not, and including any express or implied obligation of the Company to indemnify or otherwise assume or succeed to the Tax liability of any other Person. 
 (2) “Tax Return” means any return, declaration, report, claim for refund, information return, or other document,
including any related or supporting schedule, statement, information or attachment, and including any amendment thereof filed or required to be filed in connection with the determination, assessment or collection of Taxes of any party or the
administration of any laws, regulations or administrative requirements relating to any Taxes. 
 (b) The provisions of this
Section 4.8 shall survive Closing 
 ARTICLE 5 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 5.1 Representations and Warranties of Seller
Primarily Relating to the Membership Interest and the Company. Seller hereby represents and warrants to, and covenants with, Purchaser as of the Effective Date and as of the Closing Date, that: 
 (a) Authority of Seller. Neither the execution and delivery of this Agreement nor any other documents executed and
delivered, or to be executed and delivered, by Seller in connection with the transactions described herein, will violate any material agreements, regulations, or laws to or by which the Company or Seller is bound. 
 (b) Organization and Authority of the Company. The Company has been duly organized and is validly existing and in
good standing as a limited liability company under the laws of the State of Indiana. The person signing this Agreement on behalf of the Company is authorized to do so. Neither the execution and delivery of this Agreement nor any other documents
executed and delivered, or to be executed and delivered, by the Company in connection with the transactions described herein, will violate (i) any provision of the Company’s organizational documents; or (ii) any material agreements,
regulations, or laws to or by which the Company is bound. This Agreement has been duly authorized, executed and delivered by the Company. 
 (c) Ownership of Membership Interest. Seller is the only member in the Company and owns one hundred percent (100%) of the outstanding membership interests in the Company. There are no
managers or members in the Company other than Seller. Seller has good and marketable title to, and is the sole owner and holder of, the Membership Interest, free and clear of any and all liens, encumbrances, pledges and other interests on, in or to
the Membership Interest. Seller has not previously assigned, 

  

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sold, participated or otherwise transferred all or any part of the Membership Interest nor has Seller entered into any agreement to assign, sell, transfer or
participate all or any part of the Membership Interest. The transfer of the Membership Interest to the Purchaser shall validly assign ownership of the Membership Interest to the Purchaser free and clear of any pledge, lien, encumbrance or security
interest. Following Seller’s assignment of the Membership Interest to Purchaser, Purchaser shall own 65% of all legal and equitable interests in the Company, free and clear of any and all liens, encumbrances, pledges or other interests.

 (d) Authority to Transfer Membership Interest. Seller has full right and authority to enter into this
Agreement and to sell, assign and transfer the Membership Interest to the Purchaser. No documents relating to the Company or the Membership Interest prohibit or restrict Seller’s right to sell, assign or transfer the Membership Interest.

 (e) Membership Interest Files. Seller has made and shall make available to the Purchaser for
inspection a true, correct and complete copies of all material documents and reports relating to the Membership Interest, the Company and the Property. 
 (f) Assets and Liabilities. At the time of the Closing, the only material assets of the Company will be the Property. To Seller’s knowledge, the Company has no liabilities (contingent or
otherwise), other than as set forth on Schedule 5.1(f), attached hereto and by this reference made a part hereof. 
 (g) Taxes and Tax Returns. All Tax Returns required to be filed by, on behalf of or with respect to the income, assets or operations of, Seller and the Company have been timely filed with the appropriate taxing
authorities in all jurisdictions in which such Tax Returns are required to be filed, and all such Tax Returns were accurate and complete in all material respects. As of the date hereof, (i) all Taxes payable by, on behalf of or with respect to
the income, assets or operations of, Seller and the Company have been fully and timely paid, and (ii) adequate reserves or accruals for Taxes have been provided with respect to any period for which Tax Returns are not yet due and have not yet
been filed. Neither Seller nor the Company has executed or filed with the Internal Revenue Service or any other taxing authority any agreement, waiver or other document or arrangement extending or having the effect of extending the period for
assessment or collection of Taxes (including, but not limited to, any applicable statute of limitation), and no power of attorney with respect to any Tax matter is currently in force with respect to Seller or the Company. 
 (h) No Defaults. Seller has performed all obligations required to be performed by it under the Operating Agreement for
Glenwood Housing Partners I, LLC, dated September 23, 1998 (the “LLC Agreement”) and is not in breach or default of any provisions of the LLC Agreement. No action or legal proceeding is pending or threatened against Seller
relating to the Membership Interest or the Company. 
  

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 (i) Employment Matters. The Company has no employees and has never had any
employees. 
 (j) Insurance. Schedule 5.1(j), attached hereto and by this reference made a
part hereof, lists each insurance policy maintained by the Company with respect to its properties, assets and business. All of such insurance policies are in full force and effect, and the Company is not in default with respect to its obligations
under any of such insurance policies and has not received any notification of cancellation of any of such insurance policies. Furthermore, neither Seller nor the Company has received any written notice from any insurance company or board of fire
underwriters of any defect or inadequacies in or on the Real Property or any part or component thereof that would materially and adversely affect the insurability of the Real Property or cause any material increase in the premiums for insurance on
the Real Property, and that have not been cured or repaired. 
 (k) No Option or Right of First Refusal. There
exists no option, right of first refusal, letter of intent, agreement to sell, or other similar right with respect to the transfer of the Membership Interest. 
 (l) Compliance with Laws. To Seller’s knowledge, (i) the Company is in compliance in all material respects, and
has received no written notice that it is not in compliance in any material respect, with any statute, law, ordinance, rule, regulation, judgment, order, decree, governmental permit or other governmental authorization or approval applicable to it or
to the business of the Company, and (ii) all governmental authorizations or approvals material for the ownership and operation of the Property have been duly and lawfully obtained and are in full force and effect. There are no proceedings
pending or, to the knowledge of Seller, overtly threatened which may result in the revocation, cancellation or suspension, or any materially adverse modification, of any thereof. Neither the Company nor Seller has received notice of any alleged
violation of any applicable statute, law, ordinance, rule, regulation, judgment, order, decree, governmental permit or other governmental authorization or approval necessary for the conduct of the business of the Company or for the ownership and
operation of the Property by the Company. 
 (m) No Consent. Except for the approval required pursuant to
Section 4.6(d) hereof, no consents, approvals, waivers, permits or authorizations from any governmental authority or Person not a party hereto (including, without limitation, any lender to the Company or Seller) are required to be obtained or
made by Seller in connection with the execution, delivery and performance of or compliance by Seller with this Agreement or any of the closing documents or the consummation by Seller of the transaction contemplated hereby. 
 (n) Single Purpose Entity. The Company: (a) was formed or organized solely for the purpose of owning the Property;
(b) has not engaged and shall not engage in any business unrelated to the Property; (c) does not have any material assets other than its interest in the Property; (d) has and shall have its own books and records separate and apart
from any other person or 

  

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entity, and (e) holds and shall hold itself out as a legal entity, separate and apart from any other person or entity. The only business or commercial
activities conducted by the Company since its formation are the operation, ownership or management of the Property. 
 (o)
No Subsidiaries or Interests; No other Participants. The Company has no interest, direct or indirect, and has no commitment to purchase any interest, direct or indirect, in any corporation or in any partnership, joint venture or other
business enterprise or entity. The Company has no subsidiaries, and no business of the Company is carried on or conducted through any direct or indirect subsidiary or affiliate of the Company. The Company has never (i) merged with any entity,
(ii) acquired any entity, or (iii) acquired any interest in any entity, including by reason or virtue of any business transaction involving any merger, “roll-up,” consolidation, reorganization, recapitalization, restructuring or
any other type of transaction. Neither Seller nor the Company has any obligation to make any payment to any party with respect to any promoted or participation interest, or any similar payment, arising from the Company or any partnership, joint
venture or other business enterprise or entity to which the Company now has or has had any direct or indirect interest. 
 (p)
Loans to or from Officers, Directors, Shareholders or Employees. The Company does not have outstanding any loans, advances or other indebtedness incurred by any member, officer, or employee of the Company or any member of their
respective families, and there are no loans or advances made to the Company by or indebtedness incurred by the Company to any member, officer or employee of the Company or any member of their respective families 
 (q) Contracts and Commitments. Except as expressly set forth on Schedule 5.1(q) attached hereto and by this reference
made a part hereof (each, a “Contract”) and except for the Leases, the Service Contracts and the documents described in Section 5.1(s) with respect to the Existing Financing, to Seller’s knowledge, the Company is not a
party to or bound by, whether written or oral, any: 
 (1) (i) contract for the employment of any officer, individual
employee, or other person or entity on a full-time, part-time, consulting or other basis or (ii) agreement relating to loans to or from Seller or any manager, member, affiliate or any other person or entity; 
 (2) agreement or indenture relating to the borrowing of money or to the mortgaging, pledging or otherwise placing a lien on or security
interest in any asset or group of assets of the Company, Seller or any manager, member, affiliate or any other person or entity; 
 (3) guarantee of any obligation for borrowed money or otherwise; 
 (4) agreement with respect to the lending or
investing of funds; 
  

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 (5) lease or agreement under which it is lessee of or holds or operates any property,
real or personal, owned by any other party; 
 (6) lease or agreement under which it is lessor of or permits any third party
to hold or operate any property, real or personal, owned or controlled by it; 
 (7) assignment, license, indemnification or
agreement with respect to any form of intangible property, including any patent, trademark, trade name, copyright, know-how, trade secret or confidential information; 
 (8) contract or group of related contracts with the same party for the purchase or sale of products or services or for future expenditures
of the Company; or 
 (9) any other oral or written agreement of any kind. 
 The Company has performed all obligations required to be performed by it in all respects and is not in default under or in breach of nor in receipt of any
claim of default or breach under any Contract, and no event has occurred which with the passage of time or the giving of notice or both would result in a default, breach or event of noncompliance under any Contract and would allow any other party to
Contract to terminate, modify or accelerate any rights under any such agreement. 
 (r) Bank Accounts.
Schedule 5.1(r), attached hereto and by this reference made a part hereof, sets forth a complete and accurate list of each bank or financial institution in which the Company has an account or safe deposit box (giving the address and
account numbers) and the names of the Persons authorized to draw thereon or who have access thereto. 
 (s) Existing
Financing Documents. Schedule 5.1(s) attached hereto sets forth a list of all loan documents which evidence and secure the Existing Financing, each of which is in full force and effect, and no material default by Seller, or, to
Seller’s knowledge, by any other party exists under any provision thereof. 
 (t) Financial Status of Seller and
the Company. Each of Seller and the Company is solvent, has not made a general assignment for the benefit of its creditors, and has not admitted in writing its inability to pay its debts as they become due. Neither Seller nor the Company has
filed, nor does either Seller or the Company contemplate the filing of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or any other proceeding for the relief of debtors in general, nor has any such proceeding
been instituted by or against Seller or the Company, nor is any such proceeding to Seller’s knowledge threatened or contemplated. The transaction contemplated herein will not render Seller or the Company insolvent. 
 5.2 Representations and Warranties of Seller Primarily Relating to the Property. Seller hereby represents and warrants to,
and covenants with, Purchaser as of the Effective Date and as of the Closing Date: 
 (a) Pending Actions. No
action, suit, arbitration, administrative or judicial proceeding, or unsatisfied order or judgment is pending or, to Seller’s knowledge, threatened against Seller or the Company. 
  

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 (b) Condemnation. Neither Seller nor the Company has received notice of,
and, to the best of Seller’s knowledge, there is not, any pending, threatened or contemplated action by any governmental authority or agency having the power of eminent domain, which might result in any part of the Property being taken by
condemnation or conveyed in lieu thereof or concerning the widening, change of grade or limitation on the use of streets abutting the Property. Seller shall, promptly upon Seller’s or the Company’s receiving any such notice or learning of
any such contemplated or threatened action, give Purchaser written notice thereof. 
 (c) No Assessments. To
Seller’s knowledge, no assessments have been made against any portion of the Property which are unpaid (except ad valorem taxes for the current year, if any, that are not currently due and payable), whether or not they have become liens; and
Seller shall notify Purchaser upon Seller’s or the Company’s learning of any such assessments. Neither Seller nor the Company has filed any pending notices of protest against real property tax assessments with respect to the Real Property,
nor has Seller or the Company engaged anyone to file such a protest (other than protests which have been concluded). 
 (d)
Leases and Rent Roll. The Company is the lessor or landlord under the Leases. To Seller’s knowledge, the information contained in the Rent Roll is true and correct in all material respects as of the date thereof. Except as set
forth in the Rent Roll, there are no other leases or occupancy agreements affecting the Property (other than such Leases, if any, as may have been entered into in the ordinary course of business since the date of the Rent Roll). To Seller’s
knowledge, except as otherwise set forth in the Rent Roll, no rent concessions have been given to any tenants that would be applied against rent after the Closing, and no rent has been paid in advance by any tenants respecting a period subsequent to
the Closing. Except as set forth in the Rent Roll, no tenant is in material default under its Lease, and, to Seller’s knowledge, the Company is not in material default under any of the Leases. 
 (e) Existing Agreements; Service Contracts. To Seller’s knowledge, there are no management, service, supply, equipment
rental and similar agreements to which the Company is a party affecting the Property other than the Service Contracts. Those Service Contracts which have been or will be delivered by Seller to Purchaser are true, correct and complete in all material
respects and include any material amendments or modifications thereto. To Seller’s knowledge, the Company is not in default with respect to its obligations or liabilities under any of the Service Contracts. Other than the Leases, the Service
Contracts and the Permitted Exceptions, there are no leases, ground leases, service contracts, maintenance contracts, management agreements or other agreements or understandings, whether oral or written, relating to the Property to which Seller or
the Company is a party or by which Seller or the Company is bound that will be binding on the Company, Purchaser or the Property on or after the Closing Date. 
  

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 (f) Environmental Matters. Except as may be set forth in those
environmental reports and other matters, if any, identified on Schedule 5.2(f) (collectively, the “Environmental Reports”), (i) neither Seller nor the Company has received any written notice from any governmental
authority, neighboring property owner or other party asserting any violation of Environmental Laws related to the Property which has not been cured or corrected as of the Effective Date, (ii) neither Seller nor the Company has commissioned any
study or investigation relating to the presence or absence of Hazardous Materials on the Property, (iii) to Seller’s knowledge, no areas on the Property exist where Hazardous Materials have been generated, disposed of, released or found,
(iv) neither Seller nor the Company has any knowledge of the existence of any areas for the storage or disposal of any Hazardous Materials on the Property, and (v) to Seller’s knowledge, there are no storage tanks located on the
Property, either above or below ground, or any underground pipes or lines on the Property, and the Property previously has not been used as a landfill or as a dump for garbage or refuse. The term “Environmental Laws” as used herein
includes without limitation the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation, and Liability Act and other federal laws governing the environment as in effect on the date of this Agreement together
with their implementing regulations as of the date of this Agreement applicable to the Property, and all applicable state, regional, county, municipal and other local laws, regulations and ordinances that are equivalent or similar to the federal
laws recited above or that purport to regulate hazardous or toxic substances and materials. The term “Hazardous Materials” as used herein includes petroleum (including crude oil or any fraction thereof) and any substance, material,
waste, pollutant or contaminant listed or defined as hazardous or toxic under any Environmental Laws, in any case at levels or concentrations requiring monitoring, reporting, remediation or removal in accordance with Environmental Laws. 

(g) Contractors and Suppliers. All contractors, subcontractors, suppliers, architects, engineers, and others who have
performed services or labor for or supplied material to Seller or the Company with respect to the Property have been paid in full, and all liens arising from any such services, labor or materials (or claims with which the passage of time or notice
or both could mature into liens) have been satisfied and released. 
 (h) Permits and Legal Compliance. Neither
Seller nor the Company has received any written notice of an intention of any governmental authority to revoke any license, permit or certificate required for the development, use, operation or occupancy of the Property. Neither Seller nor the
Company has received any written notice that the Property is in violation of any zoning, building, fire, health, environmental or other law, statute, ordinance, regulation or order of any governmental or public authority applicable to the Property
or any private covenants or restrictions encumbering the Property that remains uncured. 
  

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 5.3 Survival of Seller’s Representations and Warranties. The representations and
warranties of Seller set forth in Sections 5.1 and 5.2 shall survive Closing for a period of one (1) year after Closing, unless notice setting forth a specific claim under any such representation or warranty shall be given to Seller within that
period, in which case such representation or warranty shall survive until such claim is finally and fully resolved. 
 5.4
Representations and Warranties of Purchaser. Purchaser hereby makes the following representations and warranties to Seller as of the Effective Date: 
 (a) Organization and Authority. Purchaser has been duly organized and is validly existing as a limited liability company
under the laws of the State of Delaware. Purchaser has the full right and authority to enter into this Agreement and to consummate the transaction contemplated herein pursuant hereto and to consummate or cause to be consummated the transactions
contemplated herein. The person signing this Agreement on behalf of Purchaser is authorized to do so. Neither the execution and delivery of this Agreement nor any other documents executed and delivered, or to be executed and delivered, by Purchaser
in connection with the transactions described herein, will violate any provision of Purchaser’s organizational documents or of any agreements, regulations, or laws to or by which Purchaser is bound. 
 (b) Consents. Purchaser has obtained all consents and permissions (if any) related to the transactions herein contemplated
and required under Purchaser’s organizational documents or any covenant, agreement, encumbrance, law or regulation by which Purchaser is bound. 
 (c) Pending Actions. There is no action, suit, arbitration, administrative or judicial administrative proceeding, or unsatisfied order or judgment pending or, to Purchaser’s knowledge, threatened
against Purchaser or the transaction contemplated by this Agreement, which, if adversely determined, could individually or in the aggregate have a material adverse effect on Purchaser’s ability to consummate the transaction contemplated herein.

 (d) Financial Status. Purchaser has adequate financial resources to purchase the Membership Interest.
Purchaser is solvent, has not made a general assignment for the benefit of its creditors, and has not admitted in writing its inability to pay its debts as they become due. Purchaser has neither filed, nor does it contemplate the filing of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or any other proceeding for the relief of debtors in general, nor has any such proceeding been instituted by or against Purchaser, nor is any such proceeding to
Purchaser’s knowledge threatened or contemplated. The purchase of the Membership Interest will not render Purchaser insolvent. 
 5.5
Survival of Purchaser’s Representations and Warranties. The representations and warranties of Purchaser set forth in Section 5.4 shall survive Closing for a period of one (1) year after Closing, unless notice setting forth
a specific claim under any such representation or warranty shall be given to Purchaser within that period, in which case such representation or warranty shall survive until such claim is finally and fully resolved. 
  

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 5.6 Indemnification by Seller. From and after the Closing, Seller shall be liable for and
shall pay, and shall indemnify, defend and hold harmless Purchaser and the Company (and each of their respective members, officers and employees) (collectively, the “Purchaser Indemnitees”) against, any and all claims, damages,
liabilities, costs and expenses (including reasonable attorneys’ fees) (collectively, the “Damages”) sustained by a Purchaser Indemnitee, in excess of insurance proceeds actually received by the Purchaser Indemnitee and other
amounts actually received by the Purchaser Indemnitee from Seller or third parties in partial or complete settlement or satisfaction of such Damages, resulting from or in connection with any claim, action, suit, proceeding or demand by a person or
entity that is not a Purchaser Indemnitee (i) relating to liabilities or obligations for which the Company has any liability or obligation after the Closing Date that are not expressly contemplated by this Agreement to continue as obligations
of the Company after the Closing; or (ii) arising from the operation of the business of the Company prior to the Closing Date. Notwithstanding any provision of this Article to the contrary, except to the extent expressly covered by any
representation, warranty or covenant made by Seller in Sections 5.1 and 5.2, in no event shall the obligations of Seller in this Section 5.6 apply to, nor shall any Purchaser Indemnitee be entitled to indemnification under this Section 5.6
for, any claims, damages, liabilities, costs and expenses relating to or associated with the condition or use of the Real Property or the Tangible Personal Property, including (without limitation) the habitability, merchantability, fitness for a
particular purpose, title, zoning, latent or patent physical or environmental condition, utilities, operating history or projections, valuation, or the compliance with governmental laws as the foregoing relate to the Real Property and the Tangible
Personal Property. The provisions of this Section 5.6 shall survive for a period of five (5) years after Closing, unless notice setting forth a specific claim for Damages for which any Purchaser Indemnitee is entitled to indemnification
hereunder shall be given to Seller or Seller otherwise shall obtain actual knowledge of any such Damages within that period, in which case the provisions of this Section 5.6 shall survive as to such Damages until the same are finally and fully
resolved; provided, however, that the provisions of this Section 5.6 shall survive indefinitely (subject to any applicable statute of limitations) as to any Damages for which any Purchaser Indemnitee is entitled to indemnification hereunder
related to Taxes. 
 5.7 Execution by Chambers and Buckingham. By their execution of this Agreement, Chambers and Buckingham
agree that they shall be primarily liable (and not as guarantors) for the breach of any representation and warranty of Seller in Section 5.1 and for the payment and performance of all duties, obligation and liabilities of Seller under the
provisions of Section 5.6 (the “Guaranteed Obligations”). Notwithstanding anything in this Agreement to the contrary, if at any time the payments made by Chambers to the Purchaser Indemnities under this Article 5 for Guaranteed
Obligations exceeds Five Hundred Thousand and No/100 Dollars ($500,000.00), then, at the option of Seller and Chambers, Seller may, by written notice to Purchaser invoke the Unwind Right, as defined and provided for in Section 6.07 of
the Restated Operating Agreement, and upon payment to Paladin of the Unwind Purchase Price (as defined therein), Seller and Chambers shall have no further liability for the Guaranteed Obligations. 
 5.8 Covenants of Seller. Seller hereby covenants with Purchaser, from the Effective Date until the Closing or earlier termination of this
Agreement, as follows: 
 (a) Conduct of the Company’s Business. The Company and Seller shall
(i) conduct the Company’s business in the ordinary course of business and (ii) preserve intact the Company’s business organization, intellectual property rights, contracts, licenses, permits and authorizations. 
  

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 (b) The Company’s Compliance with Legal Requirements and Contracts.
The Company and Seller shall comply in all material respects with all legal requirements and contractual obligations applicable to or binding upon the Company or relating to the Company’s business or assets, including the Property. 

(c) Satisfaction of Closing Obligation. The Company and Seller shall use the Company’s and Seller’s reasonable
and diligent efforts to satisfy each of the Closing conditions expressly set forth in Sections 4.6 and 4.7 (other than those conditions which are within Purchaser’s control) as soon as practicable. 
 (d) No Sale of Interests of the Company. Neither the Company nor Seller shall issue or authorize the issuance of, or
purchase or propose the purchase of, any equity interests of the Company, or declare, pay, make or otherwise effectuate any distributions, redemptions or other transactions involving the Company’s equity interests, or commit to do same.

 (e) Action or Inaction in Conformity with Representations and Warranties. Neither the Company nor Seller
shall take any action or inaction, or commit to take any action or inaction, which would result in the representations and warranties of Seller contained in ARTICLE 5 or elsewhere in this Agreement or in any schedule, attachment or exhibit hereto or
in any certificate delivered by Seller to Purchaser to not be true and correct in all respects as of the Closing. 
 (f)
Taxes. The Company shall not, and Seller shall not take any action to cause the Company, and shall not permit the Company, to (i) change in any material respect the accounting methods or practices followed by the Company,
(ii) make or revoke any tax election, change any tax accounting method or settle or compromise any tax liability, or (iii) fail to prepare and file all Tax Returns required to be filed by it. 
 (g) Additional Interests. The Company shall not, and Seller shall not take any action to cause the Company, and shall not
permit the Company, to create, authorize, issue, sell, deliver, pledge or encumber any additional membership interest or any equity interests in the Company (whether authorized but unissued or held in treasury) or other securities equivalent to or
exchangeable for membership interests or any equity interests in the Company, or grant or otherwise issue any options, warrants or other rights with respect thereto. 
 (h) Acquisitions. The Company shall not, and Seller shall not take any action to cause the Company, and shall not permit the
Company, to acquire or agree to acquire by merging or consolidating with, or by purchasing any portion of the capital stock, partnership interests, limited liability company member interests or assets of, or by any other manner, any business or any
corporation, limited liability company, partnership, association or other business organization or division thereof or form any new subsidiaries. 
  

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 (i) Loans or Advances. The Company shall not, and Seller shall not take any
action to cause the Company, and shall not permit the Company, to make any loan or advance (whether in cash or other property), or make any investment in or capital contribution to, or extend any credit to, any Person. 
 (j) Debt. The Company shall, and Seller shall take any action necessary to cause the Company to, (i) pay all debt and
perform all obligations related thereto, and (ii) incur no additional debt. 
 (k) Hiring. The Company
shall not, and Seller shall not take any action to cause the Company, and shall not permit the Company, to hire any employee. 
 (l) Reasonable Access. At all times prior to the Closing Date, Seller and the Company will permit Purchaser, Purchaser’s affiliates, and their respective employees, accountants, legal counsel and other representatives to
have reasonable access (at reasonable times, upon reasonable notice, through coordination with a representative of Seller and in a manner so as not to interfere with the normal business operations of the Company) to the premises, properties,
personnel, books, records, contracts, tax records, and documents of or pertaining to the Company and its business, as is reasonably necessary to consummate the transactions contemplated herein. 
 (m) Maintenance of Property. Seller and the Company shall maintain the Property in a manner generally consistent with the
manner in which Seller and the Company have maintained the Property prior to the date hereof. 
 (n) Provide Copies of
Notices. Seller shall furnish Purchaser with a copy of all written notices received by Seller or the Company from any governmental authority or other party of any violation of any law, statute, ordinance, regulation or order of any
governmental or public authority relating to the Property within five (5) business days following Seller’s or the Company’s receipt thereof, but, if received by such date, in no event later than two (2) business days prior to the
Closing Date. 
 (o) Execution of New Leases and Renewals. Seller shall use reasonable efforts to negotiate new
leases for unrented apartment units in the Improvements and/or Lease renewals for rented apartment units in the Improvements and shall maintain an advertising and marketing program for apartment units in the Improvements consistent with the
Company’s past practices at the Property. Unless Purchaser agrees otherwise in writing, any new leases for such apartment units entered into by the Company after the Effective Date until the Closing or earlier termination of this Agreement
shall be on the Company’s standard apartment lease form for the Property and shall be consistent with the Company’s past leasing practices. In all cases, the Company shall retain the discretion to set rent rates, concessions and other
terms of occupancy, provided the Company shall only enter into new 

  

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leases or renewals in the ordinary course of business taking into account Seller’s then-current good faith evaluation of market conditions. Each such
new lease or renewal entered into by the Company shall constitute a “Lease” for purposes of this Agreement. 
 (p) Maintenance of Insurance. Seller shall cause the Company to keep the Improvements insured against loss or damage (including rental loss) by fire and all risks covered by the Company’s insurance that is currently in
force, provided that the Company may make adjustments in the Company’s insurance coverage for the Property which are consistent with the Company’s general insurance program. 
 (q) Enforcement of Existing Leases. Seller shall cause the Company to perform the landlord’s material obligations to
the tenants under the Leases and enforce the material obligations of the tenants under the Leases, in each case in accordance with the current management standards of the Company and its property manager for its apartment properties. 
 (r) Preparation of Vacant Units for Lease. Seller shall cause the Company to place apartment units that are now vacant or
that are vacated not less than ten (10) day prior to the Closing Date into rent-ready condition on or before the Closing Date in accordance with the Company’s current management standards for its apartment properties as though no sale of
the Property were contemplated; provided, however, in no event shall there be more than twelve (12) vacant apartment units that are not in rent-ready condition on the Closing Date. 
 (s) Removal and Replacement of Tangible Personal Property. Neither Seller nor the Company shall remove any Tangible
Personal Property except as may be required for necessary repair or replacement (which repair and replacement shall be of equal quality and quantity as existed as of the time of the removal), or otherwise in accordance with current inventory and
management standards of the Company and its property manager for its apartment properties. 
 (t) Execution of New
Contracts. Neither Seller nor the Company shall, without Purchaser’s prior written consent in each instance, materially amend or terminate any of the Service Contracts, or enter into any contract or agreement that will be an obligation
affecting the Property or binding on the Company or Purchaser after the Closing, except that (i) the Company may enter into, amend or enforce (including enforcement by termination) service contracts in the ordinary course of business as
reasonably necessary for the continued operation and maintenance of the Property, provided any new service contracts are terminable without cause or penalty on thirty (30) days notice, and (ii) the Company may conduct leasing activity as
provided in Section 5.8(o) hereof. Each such new service contract entered into by the Company shall constitute a “Service Contract” for purposes of this Agreement 
  

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 (u) Maintenance of Permits. Seller and the Company shall maintain in
existence all licenses, permits and approvals that are now in existence with respect to, and are required for, the ownership, operation or improvement of the Property, and are of a continuing nature. 
 (v) Prohibited Authorizations. The Company shall not, and Seller shall not, take any action to cause the Company, and shall
not permit the Company, to authorize any of the actions prohibited under this Section 5.8, or enter into any agreement or commitment to do any of such prohibited actions. 
 ARTICLE 6 
 DEFAULT 
 6.1 Default by Purchaser. If the sale of the Membership Interest as contemplated hereunder is not consummated due to
Purchaser’s default hereunder, then Seller shall be entitled, as its sole and exclusive remedy for such default, to terminate this Agreement and receive the Deposit as liquidated damages for the breach of this Agreement and not as a penalty, it
being agreed between the parties hereto that the actual damages to Seller in the event of such breach are impractical to ascertain and the amount of the Deposit is a reasonable estimate thereof, Seller hereby expressly waiving and relinquishing any
and all other remedies at law or in equity. Seller’s right to receive the Deposit is intended not as a penalty, but as full liquidated damages. The right to receive the Deposit as full liquidated damages is Seller’s sole and exclusive
remedy in the event of default hereunder by Purchaser, and Seller hereby waives and releases any right to (and hereby covenants that it shall not) sue Purchaser: (a) for specific performance of this Agreement, or (b) to recover any damages
of any nature or description other than or in excess of the Deposit. Purchaser hereby waives and releases any right to (and hereby covenants that it shall not) sue Seller or seek or claim a refund of the Deposit (or any part thereof) on the
grounds it is unreasonable in amount and exceeds Seller’s actual damages or that its retention by Seller constitutes a penalty and not agreed upon and reasonable liquidated damages. This Section 6.1 is subject to Section 6.4
hereof. 
 6.2 Default by Seller. If the sale of the Membership Interest as contemplated hereunder is not consummated
due to Seller’s default hereunder, then Escrow Agent shall refund the Deposit to Purchaser, on demand, without prejudice to any other rights or remedies of Purchaser hereunder, at law or in equity. Without limitation on the foregoing, Purchaser
shall have the right to seek specific performance of this Agreement, injunctive relief and other equitable remedies. 
 6.3 Notice of
Default; Opportunity to Cure. Neither Seller nor Purchaser shall be deemed to be in default hereunder until and unless such party has been given written notice of its failure to comply with the terms hereof and thereafter does
not cure such failure within five (5) business days after receipt of such notice. 
 6.4 Recoverable Damages.
Notwithstanding Sections 6.1 and 6.2 hereof, in no event shall the provisions of Sections 6.1 and 6.2 limit either Purchaser’s or Seller’s obligation to indemnify the other party or the damages recoverable by the indemnified party
against the indemnifying party due to a party’s express obligation to indemnify the other party in accordance with Section 8.1 or any other provision of this Agreement. 
  

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 6.5 Rights and Remedies of the Company. Notwithstanding anything to the contrary contained
herein, Seller and the Company agree that the Company shall have no right or remedy against Purchaser with respect to any breach of this Agreement by Purchaser or in any way arising from or relating to this Agreement, the Company hereby expressly
waiving and relinquishing any and all other remedies at law or in equity. 
 ARTICLE 7 
 CASUALTY AND CONDEMNATION 
 7.1
Casualty or Condemnation. In the event of any damage to or destruction of any material portion of the Property or in the event of any taking or threat of taking by condemnation (or any conveyance in lieu thereof) of any portion of the
Property by anyone having the power of eminent domain, Purchaser shall, by written notice to Seller delivered within ten (10) business days of receiving written notice from Seller of such event, elect to: (a) terminate this Agreement and
all of Purchaser’s obligations under this Agreement, whereupon the Deposit shall be returned to Purchaser, this Agreement shall terminate and Purchaser and Seller shall have no further rights and obligations hereunder except those which
expressly survive termination of this Agreement; or (b) consummate the purchase of the Membership Interest, in which event all insurance proceeds or condemnation awards payable to or received by the Company shall be distributed or otherwise
applied by the Company in accordance with the provisions of the Restated Operating Agreement. 
 7.2 Notice of Condemnation or
Casualty. Seller shall notify Purchaser immediately upon Seller’s or the Company’s receiving notice of the occurrence or existence of any damage, destruction, condemnation or threat of condemnation affecting the Property and, at
the same time, shall provide Purchaser with such information with respect thereto as is in Seller’s or the Company’s possession in order to aid Purchaser in making, on an informed basis, the election between the alternatives provided by
clauses (a) and (b) in Section 7.2 above. Notwithstanding anything in this Agreement to the contrary, Purchaser shall have ten (10) business days after it receives such information from Seller within which to elect between such
alternatives, and, if the information is delivered to Purchaser less than ten (10) business days before the Closing Date, the Closing Date shall be postponed, if and to the extent necessary, to allow Purchaser such a ten (10) business day
period in which to make the election under Section 7.2 above 
 ARTICLE 8 
 COMMISSIONS 
 8.1 Representation and Indemnity. Purchaser and
Seller each hereby represents and warrants to the other that it has not disclosed this Agreement or the subject matter hereof to, and has not otherwise dealt with, any real estate broker, agent or salesman so as to create any legal right or
claim in any such broker, agent or salesman for a real estate commission or similar fee or compensation 

  

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with respect to the negotiation and/or consummation of this Agreement or the conveyance of the Membership Interest by Seller to Purchaser. Purchaser
and Seller shall indemnify, hold harmless and defend each other from and against any and all claims and demands for a real estate brokerage commission or similar fee or compensation arising out of any claimed dealings with the indemnifying party and
relating to this Agreement or the purchase and sale of the Membership Interest (including reasonable attorneys’ fees and expenses and court costs incurred in defending any such claim or in enforcing this indemnity). 
 8.2 Survival. This ARTICLE 8 shall survive the rescission, cancellation, termination or consummation of this Agreement. 
 ARTICLE 9 
 ESCROW AGENT

 9.1 Investment of Deposit. Escrow Agent shall invest the Deposit pursuant to Purchaser’s reasonable directions in
an interest bearing account at a commercial bank whose deposits are insured by the Federal Deposit Insurance Corporation. Escrow Agent shall notify Seller, no later than one (1) business day after Escrow Agent’s receipt thereof,
that Escrow Agent has received the Deposit in immediately available funds, and is holding the same in accordance with the terms of this Agreement. However, Escrow Agent shall invest the Deposit only in such accounts as will allow Escrow Agent to
disburse the Deposit upon no more than one (1) business day’s notice. 
 9.2 Payment at Closing. If the Closing takes
place under this Agreement, Escrow Agent shall deliver the Deposit as provided in Purchaser’s closing instructions to Escrow Agent on the Closing Date consistent with this Agreement. 
 9.3 Payment on Demand. Upon receipt of any written certification from Seller or Purchaser claiming the Deposit pursuant to the provisions
of this Agreement, Escrow Agent shall promptly forward a copy thereof to the other such party (i.e., Purchaser or Seller, whichever did not claim the Deposit pursuant to such notice) and, unless such other party within ten (10) days thereafter
notifies Escrow Agent of any objection to such requested disbursement of the Deposit, Escrow Agent shall disburse the Deposit to the party demanding the same and shall thereupon be released and discharged from any further duty or obligation
hereunder. Notwithstanding the foregoing, if Purchaser delivers a written request to Escrow Agent for the return of the Deposit at any time on or before the Inspection Date in connection with a termination of this Agreement by Purchaser pursuant to
Section 3.2, then Escrow Agent shall promptly refund the Deposit to Purchaser without the necessity of notice to Seller or Seller’s consent. 
 9.4 Exculpation of Escrow Agent. It is agreed that the duties of Escrow Agent are herein specifically provided and are purely ministerial in nature. Escrow Agent shall incur no liability whatsoever
except for its willful misconduct or negligence, so long as Escrow Agent is acting in good faith. Seller, the Company and Purchaser do each hereby release Escrow Agent from any liability for 

  

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any error of judgment or for any act done or omitted to be done by Escrow Agent in the good faith performance of its duties hereunder and do each hereby
indemnify Escrow Agent against, and agree to hold, save, and defend Escrow Agent harmless from, any costs, liabilities, and expenses incurred by Escrow Agent in serving as Escrow Agent hereunder and in faithfully discharging its duties and
obligations hereunder. 
 9.5 Stakeholder. Escrow Agent is acting as a stakeholder only with respect to the Deposit. If
there is any dispute as to whether Escrow Agent is obligated to deliver the Deposit or as to whom the Deposit is to be delivered, Escrow Agent may refuse to make any delivery and may continue to hold the Deposit until receipt by Escrow Agent of an
authorization in writing, signed by Seller and Purchaser, directing the disposition of the Deposit, or, in the absence of such written authorization, until final determination of the rights of the parties in an appropriate judicial proceeding.
If such written authorization is not given, or a proceeding for such determination is not begun, within thirty (30) days of notice to Escrow Agent of such dispute, Escrow Agent may bring an appropriate action or proceeding for leave to
deposit the Deposit in a court of competent jurisdiction pending such determination. Escrow Agent shall be reimbursed for all costs and expenses of such action or proceeding, including, without limitation, reasonable attorneys’ fees and
disbursements, by the party determined not to be entitled to the Deposit. Upon making delivery of the Deposit in any of the manners herein provided, Escrow Agent shall have no further liability or obligation hereunder. 
 9.6 Interest. All interest and other income earned on the Deposit deposited with Escrow Agent hereunder shall be reported for income tax
purposes as earnings of Purchaser. Purchaser’s taxpayer identification number is 06-0086906.  
 9.7 Execution by
Escrow Agent. Escrow Agent has executed this Agreement solely for the purpose of acknowledging and agreeing to the provisions of this ARTICLE 9. Escrow Agent’s consent to any modification or amendment of this Agreement other than
this ARTICLE 9 shall not be required. 
 ARTICLE 10 
 MISCELLANEOUS 
 10.1 Confidentiality and Public Disclosure. Except as required by law,
Purchaser and its representatives shall hold in confidence all non-public data and information obtained with respect to Seller, the Company or the Property, 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 Purchaser may disclose such data and information to the employees, lenders, investors, partners, prospective lenders and prospective investors (including in
offering materials for interests in Paladin Realty Income Properties, Inc.), consultants, accountants and attorneys of Purchaser. Prior to Closing, neither the Company, Seller nor Purchaser shall release to the public any information with respect to
the sale contemplated herein or any matters set forth in this Agreement. Notwithstanding the foregoing provisions of this Section 10.1, Seller and the Company agree that Purchaser may disclose such non-public data and 

  

 -26- 

 
information obtained with respect to Seller, the Company or the Property or information with respect to the sale contemplated herein or any matters set forth
in this Agreement to the extent necessary to enable Purchaser’s affiliate (Paladin Realty Income Properties, L.P. or Paladin Realty Income Properties, Inc.), to comply with the requirements of its public filings required to be made with the
Securities and Exchange Commission. 
 10.2 Assignment. Neither Seller nor Purchaser may assign its rights or obligations under
this Agreement without first obtaining the other party’s written approval. 
 10.3 Notices. Any notice, request or other
communication (a “notice”) required or permitted to be given hereunder shall be in writing and shall be delivered by hand or overnight courier (such as United Parcel Service or Federal Express), sent by facsimile (provided a copy of
such notice is deposited with an overnight courier for next business day delivery) or mailed by United States registered or certified mail, return receipt requested, postage prepaid and addressed to each party at its address as set forth below.
Any such notice shall be considered given on the date of such hand or courier delivery, confirmed facsimile transmission (provided a copy of such notice is deposited with an overnight courier for next business day delivery), deposit with such
overnight courier for next business day delivery, or deposit in the United States mail, but the time period (if any is provided herein) in which to respond to such notice shall commence on the date of hand or overnight courier delivery or on the
date received following deposit in the United States mail as provided above. Rejection or other refusal to accept or inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice.
By giving at least five (5) days’ prior written notice thereof, any party may from time to time and at any time change its mailing address hereunder. Any notice of any party may be given by such party’s counsel. 

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

			
	If to Purchaser:	  	PRIP 10637, LLC
		  	c/o Paladin Realty Partners, LLC
		  	10880 Wilshire Boulevard, Suite 1400
		  	Los Angeles, California 90024
		  	Attention: William K. Dunbar
		  	Telephone: (310) 996-8754
		  	Facsimile: (310) 996-8708
		
	with a copy to:                                  
      	  	King & Spalding LLP
		  	1180 Peachtree Street, N.E.
		  	Atlanta, Georgia 30309
		  	Attention: Timothy N. Tucker
		  	Telephone: (404) 572-4600
		  	Facsimile: (404) 572-5131

  

 -27- 

			
	If to Seller or the Company:	  	Bradley B. Chambers
		  	c/o Buckingham Investment Corporation
		  	333 N. Pennsylvania Street, 10th Floor
		  	Indianapolis, Indiana 46204
		  	Attention: Bradley B. Chambers
		  	Telephone: (317) 974-1234
		  	Facsimile: (317) 974-1238
		
	with a copy to:                                  
      	  	Ice Miller LLP
		  	One American Square
		  	Suite 3100
		  	Indianapolis, Indiana 46282-0200
		  	Attention: Zeff A. Weiss, Esq.
		  	Telephone: (317) 236-2319
		  	Facsimile: (317) 592-4788

 10.4 Modifications. This Agreement cannot be changed orally, and no agreement shall
be effective to waive, change, modify or discharge it in whole or in part unless such agreement is in writing and is signed by the parties against whom enforcement of any waiver, change, modification or discharge is sought. In no event shall this
Agreement be altered, amended or modified by electronic mail or electronic record. The parties acknowledge and agree that this Agreement shall not be executed, entered into, altered, amended or modified by electronic means. Without limiting the
generality of the foregoing, the parties hereby agree that the transactions contemplated by this Agreement shall not be conducted by electronic means. 
 10.5 Calculation of Time Periods. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or event after which the designated period of time begins to
run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday under the laws of the State in which the Property is located, in which event the period shall run
until the end of the next day which is neither a Saturday, Sunday or legal holiday. The final day of any such period shall be deemed to end at 5:00 p.m., Eastern time. 
 10.6 Successors and Assigns. Subject to Section 10.2 hereof, the terms and provisions of this Agreement are to apply to and bind the permitted successors and assigns of the parties hereto.

 10.7 Entire Agreement. This Agreement, including the Exhibits, contains the entire agreement between the parties pertaining
to the subject matter hereof and fully supersedes all prior written or oral agreements and understandings between the parties pertaining to such subject matter. 
 10.8 Further Assurances. Each party agrees that it will without further consideration execute and deliver such other documents and take such other action, whether prior or subsequent to Closing, as may
be reasonably requested by the other party to consummate more effectively the purposes or subject matter of this Agreement. Without limiting the generality of the foregoing, Purchaser shall, if 

  

 -28- 

 
requested by Seller, execute acknowledgments of receipt with respect to any materials delivered by Seller to Purchaser with respect to the Property.
The provisions of this Section 10.8 shall survive Closing. 
 10.9 Counterparts. This Agreement may be executed in
counterparts, and all such executed counterparts shall constitute the same agreement. It shall be necessary to account for only one such counterpart in proving this Agreement. 
 10.10 Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable,
the remainder of this Agreement shall nonetheless remain in full force and effect. 
 10.11 Applicable Law. This Agreement is
performable in the state in which the Property is located and shall in all respects be governed by, and construed in accordance with, the substantive federal laws of the United States and the laws of such state. Purchaser, Seller and
the Company hereby irrevocably submit to the jurisdiction of any state or federal court sitting in the state and judicial district in which the Property is located in any action or proceeding arising out of or relating to this Agreement and hereby
irrevocably agree that all claims in respect of such action or proceeding shall be heard and determined in a state or federal court sitting in the state and judicial district in which the Property is located. Purchaser, Seller and the Company
agree that the provisions of this Section 10.11 shall survive the Closing of the transaction contemplated by this Agreement. 
 10.12
No Third Party Beneficiary. The provisions of this Agreement and of the documents to be executed and delivered at Closing are and will be for the benefit of Purchaser, Seller and (where applicable) the Company only and are not for the
benefit of any third party, and accordingly, no third party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing. 
 10.13 Exhibits and Schedules. The following schedules or exhibits attached hereto shall be deemed to be an integral part of this Agreement:

  

					
	Schedule 1.2(a)	  	-   	    	Legal Description of the Land
	Schedule 1.2(c)	  	-   	    	List of Tangible Personal Property
	Schedule 1.2(d)	  	-   	    	Rent Roll
	Schedule 1.2(e)	  	-   	    	Service Contracts
	Schedule 3.1(b)(i)	  	-   	    	Property Documents
	Schedule 3.1(b)(ii)        	  	-   	    	Entity Documents
	Schedule 4.2(a)	  	-   	    	Form of Transfer of Membership Interest
	Schedule 4.2(c)	  	-   	    	Restated Operating Agreement
	Schedule 4.2(f)	  	-   	    	Form of Seller’s Closing Certificate
	Schedule 4.2(g)	  	-   	    	Form of Option Agreement
	Schedule 4.6(d)	  	-   	    	Terms of Existing Financing
	Schedule 5.1(f)	  	-   	    	Liabilities of the Company
	Schedule 5.1(j)	  	-   	    	Insurance
	Schedule 5.1(q)	  	-   	    	Contracts and Commitments
	Schedule 5.1(r)	  	-   	    	Bank Accounts
	Schedule 5.1(s)	  	-   	    	Existing Loan Documents
	Schedule 5.2(f)	  	-   	    	Environmental Reports

  

 -29- 

 10.14 Captions. The section headings appearing in this Agreement are for convenience of
reference only and are not intended, to any extent or for any purpose, to limit or define the text of any section or any subsection hereof. 
 10.15 Construction. The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement or any exhibits or amendments hereto. 
 10.16 Termination
of Agreement. It is understood and agreed that if either Purchaser or Seller terminate this Agreement pursuant to a right of termination granted hereunder, such termination shall operate to relieve Purchaser, Seller and the Company (in which
event the defaulting Party shall remain liable as and to the extent provided in this Agreement) from all obligations under this Agreement, except for such obligations as are specifically stated herein to survive the termination of this Agreement.

 10.17 Survival. All provisions of this Agreement which are not fully performed as of Closing shall survive Closing subject
to the terms and provisions set forth in Sections 5.3, 5.5 and 5.6, respectively. 
 10.18 Time of Essence. Time is of the
essence with respect to this Agreement. 
  

 -30- 

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

  

							
	PURCHASER:
	
	 PRIP 10637, LLC,
 a Delaware limited
liability company

		
	By:	 	 Paladin Realty Income Properties, L.P.,
 Delaware limited partnership

			
		 	By:	 	 Paladin Realty Income Properties, Inc., a
 Maryland corporation, its general partner

				
		 		 	By:	 	/s/ Michael Lenard
		 		 		 	 Michael Lenard, Executive Vice
 President, Secretary
and Counselor

 [SIGNATURES CONTINUED ON THE FOLLOWING PAGES] 

							
	SELLER:
	
	SHILOH CROSSING PARTNERS II, LLC, an Indiana limited liability company
		
	By:	 	 Buckingham Investment Corporation, an
 Indiana corporation, its Manager

				
		 		 	By:	 	/s/ Bradley B. Chambers
		 		 		 	Bradley B. Chambers, President

  

							
	THE COMPANY:
	
	 GLENWOOD HOUSING PARTNERS I, LLC,
 an
Indiana limited liability company

		
	By:	 	 Shiloh Crossing Partners II, LLC, an Indiana
 limited liability company, its Manager

			
		 	By:	 	Buckingham Investment Corporation, an Indiana corporation, its Manager
				
		 		 	By:	 	/s/ Bradley B. Chambers
		 		 		 	Bradley B. Chambers, President

 [SIGNATURES CONTINUED ON THE FOLLOWING PAGES] 

 Chambers and Buckingham have executed this Agreement for the purposes set forth in Section 5.7
hereof. 
  

			
	/s/ Bradley B. Chambers
	BRADLEY B. CHAMBERS
	
	BUCKINGHAM INVESTMENT
CORPORATION, an Indiana corporation
		
	By:	 	/s/ Bradley B. Chambers
		 	Bradley B. Chambers, President

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

  

			
	ESCROW AGENT:
	
	ICE MILLER LLP
		
	By:	 	/s/ Zeff A. Weiss
		 	Zeff A. Weiss, Partner

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