Document:

Exhibit
10.5

 

EXECUTION
COPY

 

PLACEMENT
AGENCY AGREEMENT

 

October
31, 2017

Aegis
Capital Corp.

810
7th Avenue, 18th Floor

New
York, NY 10019

 

Ladies
and Gentlemen:

 

Introduction.
Subject to the terms and conditions herein (this “Agreement”), Soligenix,, Inc., a Delaware corporation (the
“Company”), hereby agrees to sell up to an aggregate of Nine Hundred Eighty Two Thousand (982,000) shares of
common stock (the “Shares”), par value $0.001 per share (the “Common Stock”), (the Shares
or the “Securities”) directly to various investors (each, an “Investor” and, collectively,
the “Investors”) through Aegis Capital Corp. (the “Placement Agent” and, each, a “Placement
Agent”), as placement agent. The Shares shall be offered and sold pursuant to Section 4(a)(2) under the Securities Act
(as hereinafter defined). The documents executed and delivered by the Company and the Investors in connection with the Offering
(as defined below), including, without limitation, a securities purchase agreement (the “Purchase Agreement”),
shall be collectively referred to herein as the “Transaction Documents.” The purchase price to the Investors
for each Share is $2.00. The Placement Agent may retain other brokers or dealers to act as sub-agents or selected-dealers on its
behalf in connection with the Offering (as defined below).

 

The
Company hereby confirms its agreement with the Placement Agent as follows:

 

	Section 1.	Agreement to Act as Placement Agent.

 

(a)       On
the basis of the representations, warranties and agreements of the Company herein contained, and subject to all the terms and
conditions of this Agreement, the Placement Agent shall be the exclusive Placement Agent in connection with the offering and sale
by the Company of the Shares pursuant to the Company's Purchase Agreement dated as of the date hereof, with the terms of such
offering (the “Offering”) to be subject to market conditions and negotiations between the Company, the Placement
Agent and the prospective Investors. The Placement Agent will act on a reasonable best efforts basis and the Company agrees and
acknowledges that there is no guarantee of the successful placement of the Shares, or any portion thereof, in the prospective
Offering. Under no circumstances will the Placement Agent or any of its “Affiliates” (as defined below) be obligated
to underwrite or purchase any of the Shares for its own account or otherwise provide any financing. The Placement Agent shall
act solely as the Company’s agent and not as principal. The Placement Agent shall have no authority to bind the Company
with respect to any prospective offer to purchase Shares and the Company shall have the sole right to accept offers to purchase
Shares and may reject any such offer, in whole or in part. Subject to the terms and conditions hereof, payment of the purchase
price for, and delivery of, the Shares shall be made at one or more closings (each a “Closing” and the date
on which each Closing occurs, a “Closing Date”). As compensation for services rendered, on each Closing Date,
the Company shall pay to the Placement Agent a cash fee equal to seven percent (7%) of the gross proceeds received by the Company
from the sale of the Shares at the Closing of the Offering (“Placement Agent’s Fee”).

 

     

    
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(b)       The
Company hereby agrees to issue and sell to the Placement Agent (and/or its designees) on the Closing Date an option (“Placement
Agent’s Warrant”) for the purchase of an aggregate of Nineteen Thousand Six Hundred Forty (19,640) shares of Common
Stock, representing 2.0% of the Shares, for an aggregate purchase price of $100.00. The Placement Agent’s Warrant agreement,
in the form attached hereto as Exhibit A (the “Placement Agent’s Warrant Agreement”), shall be exercisable,
in whole or in part, commencing on a date which is 180 days after the Closing Date and expiring on the five-year anniversary of
the Closing Date at an initial exercise price per shares of Common Stock of $2.50, which is equal to 125% of the offering price
of the Shares. The Placement Agent’s Warrant Agreement and the shares of Common Stock issuable upon exercise thereof are
hereinafter referred to together as the “Placement Agent’s Securities.” The Placement Agent understands
and agrees that there are significant restrictions pursuant to FINRA Rule 5110 against transferring the Placement Agent’s
Warrant Agreement and the underlying shares of Common Stock during the one hundred eighty (180) days after the Closing Date and
by its acceptance thereof shall agree that it will not sell, transfer, assign, pledge or hypothecate the Placement Agent’s
Warrant Agreement, or any portion thereof, or be the subject of any hedging, short sale, derivative, put or call transaction that
would result in the effective economic disposition of such securities for a period of one hundred eighty (180) days following
the Closing Date to anyone other than (i) a selected dealer in connection with the Offering, or (ii) a bona fide officer or partner
of the Placement Agent or selected dealer; and only if any such transferee agrees to the foregoing lock-up restrictions. Delivery
of the Placement Agent’s Warrant Agreement shall be made on the Closing Date and shall be issued in the name or names and
in such authorized denominations as the Placement Agent may request.

 

(c)       The
term of the Placement Agent's exclusive engagement will be until the completion of the Offering (the “Exclusive Term”);
provided, however, that a party hereto may terminate the engagement with respect to itself at any time upon 10 days
written notice to the other parties. Notwithstanding anything to the contrary contained herein, the provisions concerning confidentiality,
indemnification and contribution contained herein and the Company’s obligations contained in the indemnification provisions
will survive any expiration or termination of this Agreement, and the Company’s obligation to pay fees actually earned and
payable and to reimburse expenses actually incurred and reimbursable pursuant to Section 1 hereof and which are permitted to be
reimbursed under FINRA Rule 5110(f)(2)(D)(i), will survive any expiration or termination of this Agreement. Nothing in this Agreement
shall be construed to limit the ability of the Placement Agent or its Affiliates to pursue, investigate, analyze, invest in, or
engage in investment banking, financial advisory or any other business relationship with Persons (as defined below) other than
the Company. As used herein (i) “Persons” means an individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or
other entity of any kind and (ii) “Affiliate” means any Person that, directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under
the Securities Act of 1933, as amended (the “Securities Act”).

 

Section 2.            Representations, Warranties
and Covenants of the Company. The Company hereby represents, warrants and covenants to the Placement Agent as of the date hereof,
and as of each Closing Date, as follows:

 

(a)       Offering
Materials. Neither the Company nor any of its directors and officers has distributed and none of them will distribute, prior
to each Closing Date, any offering material in connection with the offering and sale of the Securities other than the Purchase
Agreement and SEC Reports (as herein defined), copies of the documents incorporated by reference therein and any other materials
permitted by the Securities Act (the SEC Reports together with the documents incorporated therein collectively referred to as the
“Incorporated Documents”).

 

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(b)       Subsidiaries.
All of the direct and indirect subsidiaries of the Company (the “Subsidiaries”) are set forth in the Incorporated
Documents. Except as disclosed in the Registration Statement, the Company owns, directly or indirectly, all of the capital stock
or other equity interests of each Subsidiary free and clear of any liens, charges, security interests, encumbrances, rights of
first refusal, preemptive rights or other restrictions (collectively, “Liens”), and all of the issued and outstanding
shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities.

 

(c)       Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of this Agreement or any other agreement entered into between the Company and the Investors, (ii) a material
adverse effect on the results of operations, assets, business, properties, results of operations, prospects or condition (financial
or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s
ability to perform in any material respect on a timely basis its obligations under this Agreement or the transactions contemplated
under the other Transaction Documents (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no an action,
claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such
as a deposition), whether commenced or threatened (“Proceeding”) has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(d)       Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The
execution and delivery of each of this Agreement and the other Transaction Documents by the Company and the consummation by it
of the transactions contemplated hereby and thereby and under the Purchase Agreement have been duly authorized by all necessary
action on the part of the Company and no further action is required by the Company, the Company’s Board of Directors (the
“Board of Directors”) or the Company’s stockholders in connection therewith other than in connection with
the Required Approvals (as defined below). This Agreement has been duly executed by the Company and, when delivered in accordance
with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance
with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

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(e)       No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the transactions contemplated pursuant
to this Agreement and the other Transaction Documents, the issuance and sale of the Securities and the consummation by it of the
transactions contemplated hereby and thereby to which it is a party do not and will not (i) conflict with or violate any provision
of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter
documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a
default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give
to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of,
any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding
to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or
affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is
subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary
is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to
result in a Material Adverse Effect.

 

(f)       Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of this Agreement and the transactions contemplated
pursuant to the Purchase Agreement, other than: ((i) application(s) to the Nasdaq Capital Market (the “Trading Market”)
for the listing of the Shares and (ii) the filing of the Form D with the Commission and such filings as are required to be made
under applicable state securities laws (collectively, the “Required Approvals”).

 

(g)       Issuance
of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance with the Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other
than restrictions on transfer provided for in the Transaction Documents. The shares underlying the Placement Agent’s Warrants
(the “Placement Agent’s Warrant Shares”), when issued in accordance with the terms of the Warrants, will
be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on
transfer provided for in the Transaction Documents. The Company has reserved from its duly authorized capital stock the maximum
number of shares of Common Stock issuable pursuant to this Agreement and the Transaction Documents.

 

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(h)       Capitalization.
The capitalization of the Company is as set forth in the Incorporated Documents. The Company has not issued any capital stock since
its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under
the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee
stock purchase plans and pursuant to the conversion and/or exercise of securities of the Company or the Subsidiaries which would
entitle the holder thereof to acquire at any time any Common Stock, including, without limitation, any debt, preferred stock, rights,
options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles
the holder thereof to receive, Common Stock (“Common Stock Equivalents”) outstanding as of the date of the most
recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of participation,
or any similar right to participate in the transactions contemplated by this Agreement and the transactions contemplated pursuant
to the other Transaction Documents. Except as a result of the purchase and sale of the Securities, there are no outstanding options,
warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or
obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any
shares of Common Stock of the capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements by which
the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents or
capital stock of any Subsidiary. The issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue
shares of Common Stock or other securities to any Person (other than the Investors) and will not result in a right of any holder
of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no outstanding
securities or instruments of the Company of any Subsidiary that contain any redemption of similar provisions, and there are no
contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem
a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights of “phantom stock”
plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized.
All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued
in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive
rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the
Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting
agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to
the knowledge of the Company, between or among any of the Company’s stockholders.

 

(i)       SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
or permitted, including current reports on Form 8-K, to be filed by the Company under the Securities Act and the Exchange Act,
including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the
Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents
incorporated by reference therein, , being collectively referred to herein as the “SEC Reports”) on a timely
basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any
such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities
Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject to Rule
144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material respects
with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the
time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles
applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in
such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required
by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as
of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments.

 

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(j)       Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has
been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect,
(ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses
incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the
Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not
altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property
to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v)
the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock
option plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except
for the issuance of the Securities contemplated by the Transaction Documents, no event, liability, fact, circumstance, occurrence
or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries
or their respective businesses, prospects, properties, operations, assets or financial condition that would be required to be disclosed
by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly
disclosed at least 1 Trading Day prior to the date that this representation is made.

 

(k)       Litigation.
Except as set forth in the SEC Reports, there is no action, suit, inquiry, notice of violation, proceeding or investigation pending
or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties
before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local
or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or
enforceability of any of this Agreement and the transactions contemplated pursuant to the Transaction Documents or the Shares or
(ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither
the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim
of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been,
and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company
or any current or former director or officer of the Company.

 

(l)       Labor
Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe
that their relationships with their employees are good. No executive officer of the Company or any Subsidiary, to the knowledge
of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant
in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of
its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance
with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and
conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

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(m)       Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any
court, arbitrator or governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation
of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental
protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as
could not have or reasonably be expected to result in a Material Adverse Effect.

 

(n)       Environmental
Laws. The Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws relating to
pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or
subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants,
contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment,
or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of
Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses,
notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder (“Environmental
Laws”); (ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws
to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or
approval where in each clause (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually
or in the aggregate, a Material Adverse Effect

 

(o)       Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(p)       Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment
of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and, the payment
of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the
Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in
compliance.

 

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(q)       Patents
and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property
rights and similar rights necessary or material for use in connection with their respective businesses as described in the SEC
Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”). None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of,
the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned,
within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the
latest audited financial statements included within the SEC Reports, a notice (written or otherwise) of a claim or otherwise has
any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as would not have
a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is
no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except
where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(r)       Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage. Neither the Company nor any Subsidiary has any reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage
from similar insurers as may be necessary to continue its business without a significant increase in cost.

 

(s)       Transactions
With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company or
any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party
to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan
of the Company.

 

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(t)       Sarbanes-Oxley;
Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable requirements of
the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated
by the Commission thereunder that are effective as of the date hereof and as of the Closing Date. The Company and the Subsidiaries
maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The
Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information
required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers
have evaluated the effectiveness of the Company’s disclosure controls and procedures of the Company and the Subsidiaries
as of the end of the period covered by the Company’s most recently filed periodic report under the Exchange Act (such date,
the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange
Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial
reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or is
reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

(u)       Certain
Fees. Except as set forth in the Purchase Agreement, no brokerage or finder’s fees or commissions are or will be payable
by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by this Agreement and the transactions contemplated pursuant to the Transaction Documents.
The Investors shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons
for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by this Agreement.

 

(v)       Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject
to registration under the Investment Company Act of 1940, as amended.

 

(w)       Registration
Rights. No Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act
of any securities of the Company or any Subsidiary.

 

(x)       Listing
and Maintenance Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the
Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating
such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on
which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or
maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance with all such listing and maintenance requirements. The Common Stock is currently eligible
for electronic transfer through the Depository Trust Company or another established clearing corporation and the Company is current
in payment of the fees to the Depository Trust Company (or such other established clearing corporation) in connection with such
electronic transfer. The issuance and sale of the Shares under the Transaction Documents does not contravene the rules and regulations
of the Trading Market on which the Common Stock is currently listed or quoted, and no approval of the shareholders of the Company
thereunder is required for the Company to issue and deliver to the Investors the maximum number of Shares contemplated by Transaction
Documents.

 

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(y)       Application
of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company’s certificate of incorporation (or similar charter documents)
or the laws of its state of incorporation that is or could become applicable to the Investors as a result of the Investors and
the Company fulfilling their obligations or exercising their rights under this Agreement and the transactions contemplated pursuant
to the Transaction Documents, including without limitation as a result of the Company’s issuance of the Securities and the
Investors’ ownership of the Securities.

 

(z)       Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by this Agreement and the transactions
contemplated pursuant to the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf
has provided any of the Investors or their agents or counsel with any information that it believes constitutes or might constitute
material, non-public information which is not otherwise disclosed in the SEC Records. The Company understands and confirms that
the Investors will rely on the foregoing representation in effecting transactions in securities of the Company. All of the disclosure
furnished by or on behalf of the Company to the Investors regarding the Company and, its Subsidiaries, their respective businesses
and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not
contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made
therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company
during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made and when made, not misleading.

 

(aa)     No
Integrated Offering. Assuming the accuracy of the Investors’ representations and warranties set forth in the Transaction
Documents, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly,
made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this
offering of the Shares to be integrated with other components of this Offering or prior offerings or concurrent or future offerings
by the Company for purposes of the Securities Act which would require the registration of the Warrants or any applicable shareholder
approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

(bb)    Solvency.
Based on the consolidated financial condition of the Company as of each Closing Date, after giving effect to the receipt by the
Company of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s assets exceeds
the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including
known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to
carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular
capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability
thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate
all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability
to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).
The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from each Closing Date. The SEC Reports sets forth
as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company
or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” means (x) any liabilities
for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of
business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or
not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties
by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;
and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance
with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

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(cc)     Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and its Subsidiaries (i) has made or filed all United States federal, state and local income
and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject,
(ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due
on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of
all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid
taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or
of any Subsidiary know of no basis for any such claim.

 

(dd)    Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent
or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any
unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns
from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person
acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any
provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(ee)     [Reserved]

 

(ff)      Accountants.
The Company’s accounting firm is set forth in the Incorporated Documents. To the knowledge and belief of the Company, such
accounting firm (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion
with respect to the financial statements to be included in the Company’s Annual Report for the fiscal year ending December
31, 2017. 

 

(gg)    Regulation
M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of,
any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities
of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement agent in
connection with the placement of the Shares.

 

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(hh)    Office
of Foreign Assets Control. Neither the Company nor any Subsidiary, to the Company's knowledge, any director, officer, agent,
employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

 

(ii)       U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Investor’s
request.

 

(jj)       Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act
of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the
“Federal Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly
or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or
more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(kk)     Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company with respect to the Money Laundering Laws is pending or, to the knowledge of the Company,
threatened.

 

(ll)       FDA.
Except as set forth in the SEC Reports, as to each product subject to the jurisdiction of the U.S. Food and Drug Administration
(“FDA”) under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of its
Subsidiaries (each such product, a “Pharmaceutical Product”), such Pharmaceutical Product is being manufactured,
packaged, labeled, tested, distributed, sold and/or marketed by the Company in compliance with all applicable requirements under
FDCA and similar laws, rules and regulations relating to registration, investigational use, premarket clearance, licensure, or
application approval, good manufacturing practices, good laboratory practices, good clinical practices, product listing, quotas,
labeling, advertising, record keeping and filing of reports, except where the failure to be in compliance would not have a Material
Adverse Effect. There is no pending, completed or, to the Company's knowledge, threatened, action (including any lawsuit, arbitration,
or legal or administrative or regulatory proceeding, charge, complaint, or investigation) against the Company or any of its Subsidiaries,
and none of the Company or any of its Subsidiaries has received any notice, warning letter or other communication from the FDA
or any other governmental entity, which (i) contests the premarket clearance, licensure, registration, or approval of, the uses
of, the distribution of, the manufacturing or packaging of, the testing of, the sale of, or the labeling and promotion of any
Pharmaceutical Product, (ii) withdraws its approval of, requests the recall, suspension, or seizure of, or withdraws or orders
the withdrawal of advertising or sales promotional materials relating to, any Pharmaceutical Product, (iii) imposes a clinical
hold on any clinical investigation by the Company or any of its Subsidiaries, (iv) enjoins production at any facility of the Company
or any of its Subsidiaries, (v) enters or proposes to enter into a consent decree of permanent injunction with the Company or
any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws, rules or regulations by the Company or any of its
Subsidiaries, and which, either individually or in the aggregate, would have a Material Adverse Effect. The properties, business
and operations of the Company have been and are being conducted in all material respects in accordance with all applicable laws,
rules and regulations of the FDA.  The Company has not been informed by the FDA that the FDA will prohibit the marketing,
sale, license or use in the United States of any product proposed to be developed, produced or marketed by the Company nor has
the FDA expressed any concern as to approving or clearing for marketing any product being developed or proposed to be developed
by the Company.

 

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(mm)   Clinical
Trials. The pre-clinical and other studies and tests conducted by or on behalf of or sponsored by the Company or its subsidiaries
that are described or referred to in the SEC Reports, were and, if still pending, are being conducted in accordance in all material
respects with all statutes, laws, rules and regulations, as applicable (including, without limitation, those administered by the
FDA or by any foreign, federal, state or local governmental or regulatory authority performing functions similar to those performed
by the FDA). The descriptions of the results of such studies and tests that are described or referred to in the SEC Reports are
accurate and complete in all material respects and fairly present the published data derived from such studies and tests, and each
of the Company and its subsidiaries has no knowledge of other studies or tests the results of which are materially inconsistent
with or otherwise call into question the results described or referred to in the SEC Reports. Except as described in the SEC Reports,
neither the Company nor its Subsidiaries has received any notices or other correspondence from the FDA or any other foreign, federal,
state or local governmental or regulatory authority performing functions similar to those performed by the FDA with respect to
any ongoing clinical or pre-clinical studies or tests requiring the termination or suspension of such studies or tests. For the
avoidance of doubt, the Company makes no representation or warranty that the results of any studies, tests or preclinical or clinical
trials conducted by or on behalf of the Company will be sufficient to obtain governmental approval from the FDA or any foreign,
state or local governmental body exercising comparable authority. The studies, tests and preclinical and clinical investigations
conducted by or on behalf of the Company and its Subsidiaries were and, if still pending, are, in all material respects, being
conducted in accordance with established protocols, procedures and controls pursuant to accepted professional scientific standards
and all applicable Health Care Laws and Regulatory Permits, including, without limitation, the FDCA and its implementing regulations
set forth at 21 C.F.R. Parts 50, 54, 56, 58, and 312; the descriptions of the results of such studies, tests and trials contained
in the SEC Reports are accurate in all material respects and fairly present the data derived from such studies, tests and trials;
except to the extent disclosed in the SEC Reports, the Company is not aware of any studies, tests or trials the results of which
the Company believes reasonably call into question in any material respect, the study, test, or trial results described or referred
to in the SEC Reports when viewed in the context in which such results are described and the clinical state of development; and
neither the Company nor any of its Subsidiaries have received any notices or correspondence from any governmental authority requiring
the termination, suspension or material modification of any studies, tests or preclinical or clinical investigations conducted
by or on behalf of the Company or any of its Subsidiaries.

 

(nn)    Certificates.
Any certificate signed by an officer of the Company and delivered to the Placement Agent or to counsel for the Placement
Agent shall be deemed to be a representation and warranty by the Company to the Placement Agent as to the matters set forth
therein.

 

(oo)    Reliance.
The Company acknowledges that the Placement Agent will rely upon the accuracy and truthfulness of the foregoing representations
and warranties and hereby consents to such reliance. 

 

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(pp)    FINRA
Affiliations. There are no affiliations with any FINRA member firm among the Company’s officers, directors or, to the
knowledge of the Company, any five percent (5%) or greater stockholder of the Company.

 

(qq)    Lock-Up
Agreements. Schedule A hereto contains a complete and accurate list of the Company’s officers and directors (collectively,
the “Lock-Up Parties”). The Company has caused each of the Lock-Up Parties to deliver to the Placement Agent
an executed Lock-Up Agreement, in the form attached hereto as Exhibit B (the “Lock-Up Agreement”), prior to
the execution of this Agreement.

 

Section 3.           Delivery and
Payment. Each Closing shall occur at the offices of Gracin & Marlow, LLP, The Chrysler Building, 405 Lexington
Avenue, New York, New York 10174 (or at such other place as shall be agreed upon by the Placement Agent and the Company)
(“Placement Agent Counsel”). Subject to the terms and conditions hereof, at each Closing payment of the
purchase price for the Securities sold on such Closing Date shall be made by Federal Funds wire transfer, against delivery of
such Securities, and such Securities shall be registered in such name or names and shall be in such denominations, as the
Placement Agent may request at least one business day before the time of purchase (as defined below).

 

Deliveries of the documents
with respect to the purchase of the Securities, if any, shall be made at the offices of Placement Agent Counsel. All actions taken
at a Closing shall be deemed to have occurred simultaneously.

 

Section 4.            Covenants and Agreements
of the Company. The Company further covenants and agrees with the Placement Agent as follows:

 

(a)       Form
D-Blue Sky Compliance. The Company will cooperate with the Placement Agent and the Investors in endeavoring to qualify the
Securities for sale under the securities laws of such jurisdictions (United States and foreign) as the Placement Agent and the
Investors may reasonably request and will make such applications, file such documents, and furnish such information as may be reasonably
required for that purpose, provided the Company shall not be required to qualify as a foreign corporation or to file a general
consent to service of process in any jurisdiction where it is not now so qualified or required to file such a consent. The Company
will file a Form D within the requisite 15 day time period. The Company will, from time to time, prepare and file such statements,
reports and other documents as are or may be required to continue such qualifications in effect for so long a period as the Placement
Agent may reasonably request for distribution of the Securities. The Company will advise the Placement Agent promptly of the suspension
of the qualification or registration of (or any such exemption relating to) the Securities for offering, sale or trading in any
jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order
suspending such qualification, registration or exemption, the Company shall use its best efforts to obtain the withdrawal thereof
at the earliest possible moment.

 

(b)       Transfer
Agent. The Company will maintain, at its expense, a registrar and transfer agent for the Common Stock.

 

(c)       Periodic
Reporting Obligations. During the twelve months after the Closing, the Company will duly file, on a timely basis, with the
Commission and the Trading Market all reports and documents required to be filed under the Exchange Act within the time periods
and in the manner required by the Exchange Act.

 

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(d)       Additional
Documents. The Company will enter into any subscription, purchase or other customary agreements as the Placement Agent
or the Investors deem necessary or appropriate to consummate the Offering, all of which will be in form and substance reasonably
acceptable to the Placement Agent and the Investors. The Company agrees that the Placement Agent may rely upon, and each is a third
party beneficiary of, the representations and warranties, and applicable covenants, set forth in any such purchase, subscription
or other agreement with Investors in the Offering.

 

(e)       No
Manipulation of Price.  The Company will not take, directly or indirectly, any action designed to cause or result
in, or that has constituted or might reasonably be expected to constitute, the stabilization or manipulation of the price of any
securities of the Company.

 

(f)       Acknowledgment.
The Company acknowledges that any advice given by the Placement Agent to the Company is solely for the benefit and use of the Board
of Directors of the Company and may not be used, reproduced, disseminated, quoted or referred to, without the Placement Agent's
prior written consent.

 

(g)       Company
Lock-Up Agreement. The Company, on behalf of itself and any successor entity, agrees that, without the prior written consent
of the Placement Agent, it will not, for a period of 90 days after the date of this Agreement (the “Lock-Up Period”),
(i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of capital
stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company;
(ii)other than pursuant to a registration statement for the registration of the Shares to be sold to the Purchasers under the Purchase
Agreements file or cause to be filed any registration statement with the Commission relating to the offering of any shares of capital
stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company;
or (iii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of capital stock of the Company, whether any such transaction described in clause (i), (ii) or (iii) above is to be
settled by delivery of shares of capital stock of the Company or such other securities, in cash or otherwise.

 

The restrictions
contained in this Section 4(g) shall not apply to (i) the securities to be sold through the efforts of the Placement Agent in the
Company’s proposed registered direct offering, or (ii) the issuance by the Company of shares of Common Stock upon the exercise
of a stock option or warrant or the conversion of a security outstanding on the date hereof, of which the Placement Agent has been
made aware, or (iii) the issuance of stock options to employees, directors and consultants pursuant to equity compensation plans
described in the SEC Reports.

 

(h)       Release
of D&O Lock-up Period. If the Placement Agent, in its sole discretion, agrees to release or waive the restrictions set
forth in the Lock-Up Agreements described in Section 2(qq) hereof for an officer or director of the Company and provide the Company
with notice of the impending release or waiver at least three (3) Business Days before the effective date of the release or waiver,
the Company agrees to announce the impending release or waiver by a press release substantially in the form of Exhibit C hereto
through a major news service at least two (2) Business Days before the effective date of the release or waiver.

 

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Section 5.           Conditions of the Obligations
of the Placement Agent. The obligations of the Placement Agent hereunder shall be subject to the accuracy of the representations
and warranties on the part of the Company set forth in Section 2 hereof, in each case as of the date hereof and as of each Closing
Date as though then made, to the timely performance by each of the Company of its covenants and other obligations hereunder on
and as of such dates, and to each of the following additional conditions:

 

(a)       Accountants’
Comfort Letter. On the date hereof, the Placement Agent shall have received, and the Company shall have caused to be delivered
to the Placement Agent, a letter from each of EisnerAmper LLP. with respect to the Company’s financial statements for the
fiscal years ended December 31, 2016 and 2015 (the independent registered public accounting firms of the Company), addressed to
the Placement Agent, dated as of the date hereof, in form and substance satisfactory to the Placement Agent. The letter shall not
disclose any change in the condition (financial or other), earnings, operations, business or prospects of the Company from that
set forth in the Incorporated Documents, which, in the Placement Agent's sole judgment, is material and adverse and that makes
it, in the Placement Agent's sole judgment, impracticable or inadvisable to proceed with the Offering of the Shares.

 

(b)       Compliance
with Registration Requirements; No Stop Order; No Objection from the FINRA. No order having the effect of ceasing or suspending
the distribution of the Shares or any other securities of the Company shall have been issued by any securities commission, securities
regulatory authority or stock exchange and no proceedings for that purpose shall have been instituted or shall be pending or, to
the knowledge of the Company, contemplated by any securities commission, securities regulatory authority or stock exchange; all
requests for additional information on the part of the Commission shall have been complied with; and the FINRA shall have raised
no objection to the fairness and reasonableness of the placement terms and arrangements.

 

(c)       Corporate
Proceedings. All corporate proceedings and other legal matters in connection with this Agreement, and the registration, sale
and delivery of the Securities, shall have been completed or resolved in a manner reasonably satisfactory to the Placement Agent
Counsel, and such counsel shall have been furnished with such papers and information as it may reasonably have requested to enable
such counsel to pass upon the matters referred to in this Section 5.

 

(d)       No
Material Adverse Change. Subsequent to the execution and delivery of this Agreement and prior to each Closing Date, in the
Placement Agent’s sole judgment after consultation with the Company, there shall not have occurred any Material Adverse Change
or Material Adverse Effect.

 

(e)       Opinion
of Counsel for the Company. The Placement Agent shall have received on each Closing Date the favorable opinion of Duane Morris,
legal counsel to the Company, dated as of such Closing Date, including, without limitation, a negative assurance letter addressed
to the Placement Agent and in form and substance satisfactory to the Placement Agent.

 

(f)       Intentionally
Omitted.

 

(g)       Officers’
Certificate. The Placement Agent shall have received on each Closing Date a certificate of the Company, dated as of such Closing
Date, signed by the Chief Executive Officer and Chief Financial Officer of the Company, to the effect that, and the Placement Agent
shall be satisfied that, the signers of such certificate have reviewed the Transaction Documents, and this Agreement and to the
further effect that:

 

(i)       The
representations and warranties of the Company in this Agreement are true and correct, as if made on and as of such Closing Date,
and the Company has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied
at or prior to such Closing Date;

 

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(ii)       No
order having the effect of ceasing or suspending the distribution of the Shares or any other securities of the Company has been
issued by any securities commission, securities regulatory authority or stock exchange in the United States and no proceedings
for that purpose have been instituted or are pending or, to the knowledge of the Company, contemplated by any securities commission,
securities regulatory authority or stock exchange in the United States;

 

(iii)       At
the time of sale, and at all times subsequent thereto up to the delivery of such certificate, the Incorporated Documents, if any,
when such documents were filed with the Commission, contained all material information required to be included therein by the Securities
Act and the Exchange Act and the applicable rules and regulations of the Commission thereunder, as the case may be, and in all
material respects conformed to the requirements of the Securities Act and the Exchange Act and the applicable rules and regulations
of the Commission thereunder, as the case may be, and the Incorporated Documents, if any, did not and do not include any untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading (provided, however, that the preceding representations
and warranties contained in this paragraph (iii) shall not apply to any statements or omissions made in reliance upon and in conformity
with information furnished in writing to the Company by the Placement Agent expressly for use therein) and, there has occurred
no event required by the Securities Act and the rules and regulations of the Commission thereunder to be set forth in the Incorporated
Documents which has not been so set forth; and

 

(iv)       Subsequent
to the respective dates as of which information is given in the Incorporated Documents there has not been: (a) any Material Adverse
Change; (b) any transaction that is material to the Company and the Subsidiaries taken as a whole, except transactions entered
into in the ordinary course of business; (c) any obligation, direct or contingent, that is material to the Company and the Subsidiaries
taken as a whole, incurred by the Company or any Subsidiary, except obligations incurred in the ordinary course of business; (d)
any material change in the capital stock (except changes thereto resulting from the exercise of outstanding stock options or warrants)
or outstanding indebtedness of the Company or any Subsidiary; (e) any dividend or distribution of any kind declared, paid or made
on the capital stock of the Company; or (f) any loss or damage (whether or not insured) to the property of the Company or any Subsidiary
which has been sustained or will have been sustained which has a Material Adverse Effect.

 

(h)       Bring-down
Comfort Letter.  On each Closing Date, the Placement Agent shall have received from EisnerAmper LLP. with
respect to the Company’s financial statements for the fiscal years ended December 31, 2016 and 2015 , or such other independent registered
public accounting firm of the Company, a letter dated as of such Closing Date, in form and substance satisfactory to the Placement
Agent, to the effect that they reaffirm the statements made in the letter furnished pursuant to subsection (a) of this
Section 5, except that the specified date referred to therein for the carrying out of procedures shall be no more than three
business days prior to such Closing Date.

 

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(i)       Stock
Exchange Listing. The Common Stock shall be registered under the Exchange Act and shall be listed on the Trading Market, and
the Company shall not have taken any action designed to terminate, or likely to have the effect of terminating, the registration
of the Common Stock under the Exchange Act or delisting or suspending from trading the Common Stock from the Trading Market, nor
shall the Company have received any information suggesting that the Commission or the Trading Market is contemplating terminating
such registration or listing.

 

(j)       Placement
Agent’s Warrant Agreements. On or before the Closing Date, the Placement Agent shall have received executed copies of
the Placement Agent’s Warrant Agreements.

 

(k)       Lock-Up
Agreements. On or before the date of this Agreement, the Company shall have delivered to the Placement Agent executed copies
of the Lock-Up Agreements from each of the persons listed in Schedule A hereto.

 

(l)       Additional
Documents. On or before each Closing Date, the Placement Agent and counsel for the Placement Agent shall have received such
information and documents as they may reasonably require for the purposes of enabling them to pass upon the issuance and sale of
the Securities as contemplated herein, or in order to evidence the accuracy of any of the representations and warranties, or the
satisfaction of any of the conditions or agreements, herein contained.

 

If any condition specified
in this Section 5 is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Placement Agent
by notice to the Company at any time on or prior to a Closing Date, which termination shall be without liability on the part of
any party to any other party, except that Section 6 (Payment of Expenses), Section 7 (Indemnification and Contribution) and Section
8 (Representations and Indemnities to Survive Delivery) shall at all times be effective and shall survive such termination.

 

Section 6.            Payment of Expenses.
The Company agrees to pay all costs, fees and expenses incurred by the Company in connection with the performance of its obligations
hereunder and in connection with the transactions contemplated hereby, including, without limitation: (i) all expenses incident
to the issuance, delivery and qualification of the Securities (including all printing and engraving costs); (ii) all fees and expenses
of the registrar and transfer agent of the Common Stock; (iii) all necessary issue, transfer and other stamp taxes in connection
with the issuance and sale of the Securities; (iv) all fees and expenses of the Company’s counsel, independent public
or certified public accountants and other advisors; (v) all filing fees, reasonable attorneys’ fees and expenses incurred
by the Company in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of)
all or any part of the Securities for offer and sale under the state securities or blue sky laws or the securities laws of any
other country(vii) the fees and expenses associated with including the Securities on the Trading Market; and (vii) the fees and
expenses of the Underwriter's legal counsel not to exceed {$25,000}.

 

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	Section 7.	Indemnification and Contribution.

 

(a) The Company
agrees to indemnify and hold harmless the Placement Agent, its affiliates and each person controlling the Placement Agent (within
the meaning of Section 15 of the Securities Act), and the directors, officers, agents and employees of the Placement Agent, its
affiliates and each such controlling person (the Placement Agent, and each such entity or person. an “Indemnified Person”)
from and against any losses, claims, damages, judgments, assessments, costs and other liabilities (collectively, the “Liabilities”),
and shall reimburse each Indemnified Person for all fees and expenses (including the reasonable fees and expenses of one counsel
for all Indemnified Persons, except as otherwise expressly provided herein) (collectively, the “Expenses”)
as they are incurred by an Indemnified Person in investigating, preparing, pursuing or defending any Actions, whether or not any
Indemnified Person is a party thereto, (i) caused by, or arising out of or in connection with, any untrue statement or alleged
untrue statement of a material fact contained in any Incorporated Document or by any omission or alleged omission to state therein
a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading
(other than untrue statements or alleged untrue statements in, or omissions or alleged omissions from, information relating to
an Indemnified Person furnished in writing by or on behalf of such Indemnified Person expressly for use in the Incorporated Documents)
or (ii) otherwise arising out of or in connection with advice or services rendered or to be rendered by any Indemnified Person
pursuant to this Agreement, the transactions contemplated thereby or any Indemnified Person's actions or inactions in connection
with any such advice, services or transactions; provided, however, that, in the case of clause (ii) only, the Company
shall not be responsible for any Liabilities or Expenses of any Indemnified Person that are finally judicially determined to have
resulted solely from such Indemnified Person's (x) gross negligence or willful misconduct in connection with any of the advice,
actions, inactions or services referred to above or (y) use of any offering materials or information concerning the Company in
connection with the offer or sale of the Securities in the Offering which were not authorized for such use by the Company and
which use constitutes gross negligence or willful misconduct. The Company also agrees to reimburse each Indemnified Person for
all Expenses as they are incurred in connection with enforcing such Indemnified Person's rights under this Agreement.

 

(b)       Upon
receipt by an Indemnified Person of actual notice of an Action against such Indemnified Person with respect to which indemnity
may be sought under this Agreement, such Indemnified Person shall promptly notify the Company in writing; provided that failure
by any Indemnified Person so to notify the Company shall not relieve the Company from any liability which the Company may have
on account of this indemnity or otherwise to such Indemnified Person, except to the extent the Company shall have been prejudiced
by such failure. The Company shall, if requested by the Placement Agent, assume the defense of any such Action including the employment
of counsel reasonably satisfactory to the Placement Agent, which counsel may also be counsel to the Company. Any Indemnified Person
shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Person unless: (i) the Company has failed promptly to assume the defense
and employ counsel or (ii) the named parties to any such Action (including any impeded parties) include such Indemnified Person
and the Company, and such Indemnified Person shall have been advised in the reasonable opinion of counsel that there is an actual
conflict of interest that prevents the counsel selected by the Company from representing both the Company (or another client of
such counsel) and any Indemnified Person; provided that the Company shall not in such event be responsible hereunder for the fees
and expenses of more than one firm of separate counsel for all Indemnified Persons in connection with any Action or related Actions,
in addition to any local counsel. The Company shall not be liable for any settlement of any Action effected without its written
consent (which shall not be unreasonably withheld). In addition, the Company shall not, without the prior written consent of the
Placement Agent (which shall not be unreasonably withheld), settle, compromise or consent to the entry of any judgment in or otherwise
seek to terminate any pending or threatened Action in respect of which indemnification or contribution may be sought hereunder
(whether or not such Indemnified Person is a party thereto) unless such settlement, compromise, consent or termination includes
an unconditional release of each Indemnified Person from all Liabilities arising out of such Action for which indemnification or
contribution may be sought hereunder. The indemnification required hereby shall be made by periodic payments of the amount thereof
during the course of the investigation or defense, as such expense, loss, damage or liability is incurred and is due and payable.

 

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(c)       In
the event that the foregoing indemnity is unavailable to an Indemnified Person other than in accordance with this Agreement, the
Company shall contribute to the Liabilities and Expenses paid or payable by such Indemnified Person in such proportion as is appropriate
to reflect (i) the relative benefits to the Company, on the one hand, and to the Placement Agent and any other Indemnified Person,
on the other hand, of the matters contemplated by this Agreement or (ii) if the allocation provided by the immediately preceding
clause is not permitted by applicable law, not only such relative benefits but also the relative fault of the Company, on the one
hand, and the Placement Agent and any other Indemnified Person, on the other hand, in connection with the matters as to which such
Liabilities or Expenses relate, as well as any other relevant equitable considerations; provided that in no event shall the Company
contribute less than the amount necessary to ensure that all Indemnified Persons, in the aggregate, are not liable for any Liabilities
and Expenses in excess of the amount of fees actually received by the Placement Agent pursuant to this Agreement. For purposes
of this paragraph, the relative benefits to the Company, on the one hand, and to the Placement Agent on the other hand, of the
matters contemplated by this Agreement shall be deemed to be in the same proportion as (a) the total value paid or contemplated
to be paid to or received or contemplated to be received by the Company in the transaction or transactions that are within the
scope of this Agreement, whether or not any such transaction is consummated, bears to (b) the fees paid to the Placement Agent
under this Agreement. Notwithstanding the above, no person guilty of fraudulent misrepresentation within the meaning of Section
11(f) of the Securities Act, as amended, shall be entitled to contribution from a party who was not guilty of fraudulent misrepresentation.

 

(d)       The
Company also agrees that no Indemnified Person shall have any liability (whether direct or indirect, in contract or tort or otherwise)
to the Company for or in connection with advice or services rendered or to be rendered by any Indemnified Person pursuant to this
Agreement, the transactions contemplated thereby or any Indemnified Person's actions or inactions in connection with any such advice,
services or transactions except for Liabilities (and related Expenses) of the Company that are finally judicially determined to
have resulted solely from such Indemnified Person's gross negligence or willful misconduct in connection with any such advice,
actions, inactions or services.

 

(e)       The
reimbursement, indemnity and contribution obligations of the Company set forth herein shall apply to any modification of this Agreement
and shall remain in full force and effect regardless of any termination of, or the completion of any Indemnified Person's services
under or in connection with, this Agreement.

 

Section 8.         Representations and Indemnities
to Survive Delivery. The respective indemnities, agreements, representations, warranties and other statements of the Company
or any person controlling the Company, of its officers, and of the Placement Agent set forth in or made pursuant to this Agreement
will remain in full force and effect, regardless of any investigation made by or on behalf of the Placement Agent, the Company,
or any of its or their partners, officers or directors or any controlling person, as the case may be, and will survive delivery
of and payment for the Securities sold hereunder and any termination of this Agreement. A successor to a Placement Agent, or to
the Company, its directors or officers or any person controlling the Company, shall be entitled to the benefits of the indemnity,
contribution and reimbursement agreements contained in this Agreement.

 

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Section 9.            Notices. All communications
hereunder shall be in writing and shall be mailed, hand delivered or telecopied and confirmed to the parties hereto as follows:

 

If to the Placement Agent to the address
set forth above, attention: David Bocchi, Facsimile: (212) 813-1047

 

With a copy to: 

 

Gracin & Marlow, LLP 

The Chrysler Building

405 Lexington Avenue, 26th
Floor

New York, NY 10174

Facsimile: (212) 208-4657

Attention: Leslie Marlow, Esq.

 

If to the Company:

 

Soligenix, Inc.

29 Emmons Drive, Suite C-10

Princeton, NJ 08540

Attention: Chief Executive Officer

Facsimile No.:

 

With a copy to: 

 

Duane Morris

Boca Center Tower II

5100 Town Center Circle, Suite 650

Boca Raton, Florida 33486-9000

Facsimile: (561)634-4260

Attention: Driscoll Ugarte, Esq.

 

Any party hereto may
change the address for receipt of communications by giving written notice to the others.

 

Section 10.         Tail Financing. In
the event that the Offering is consummated, the Placement Agent shall be entitled to a Placement Agent’s Fee and Placement
Agent Warrants, calculated in the manner provided in Sections 1(a) and 1(b), with respect to any public or private offering or
other financing or capital-raising transaction of any kind (“Tail Financing”) to the extent that such financing or
capital is provided to the Company by investors whom the Placement Agent had introduced and who participated in the Offering, directly,
to the Company during the Exclusive Term, if such Tail Financing is consummated at any time within the 9-month period following
the completion of the Offering.

 

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Section 11.         Successors. This
Agreement will inure to the benefit of and be binding upon the parties hereto, and to the benefit of the employees, officers and
directors and controlling persons referred to in Section 7 hereof, and to their respective successors, and personal representative,
and no other person will have any right or obligation hereunder.

 

Section 12.         Partial Unenforceability.
The invalidity or unenforceability of any section, paragraph or provision of this Agreement shall not affect the validity or enforceability
of any other section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason
determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as
are necessary to make it valid and enforceable.

 

Section 13.         Governing Law Provisions.
This Agreement shall be deemed to have been made and delivered in New York City and both this engagement letter and the transactions
contemplated hereby shall be governed as to validity, interpretation, construction, effect and in all other respects by the internal
laws of the State of New York, without regard to the conflict of laws principles thereof. Each of the Placement Agent and the Company:
(i) agrees that any legal suit, action or proceeding arising out of or relating to this engagement letter and/or the transactions
contemplated hereby shall be instituted exclusively in New York Supreme Court, County of New York, or in the United States District
Court for the Southern District of New York, (ii) waives any objection which it may have or hereafter to the venue of any such
suit, action or proceeding, and (iii) irrevocably consents to the jurisdiction of the New York Supreme Court, County of New York,
and the United States District Court for the Southern District of New York in any such suit, action or proceeding. Each of the
Placement Agent and the Company further agrees to accept and acknowledge service of any and all process which may be served in
any such suit, action or proceeding in the New York Supreme Court, County of New York, or in the United States District Court for
the Southern District of New York and agrees that service of process upon the Company mailed by certified mail to the Company’s
address shall be deemed in every respect effective service of process upon the Company, in any such suit, action or proceeding,
and service of process upon the Placement Agent mailed by certified mail to the Placement Agent’s address shall be deemed
in every respect effective service process upon the Placement Agent, in any such suit, action or proceeding. Notwithstanding any
provision of this engagement letter to the contrary, the Company agrees that neither the Placement Agent nor its affiliates, and
the respective officers, directors, employees, agents and representatives of the Placement Agent, its affiliates and each other
person, if any, controlling the Placement Agent or any of its affiliates, shall have any liability (whether direct or indirect,
in contract or tort or otherwise) to the Company for or in connection with the engagement and transaction described herein except
for any such liability for losses, claims, damages or liabilities incurred by us that are finally judicially determined to have
resulted from the bad faith or gross negligence of such individuals or entities. If either party shall commence an action or proceeding
to enforce any provision of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other
party for its reasonable attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such action or proceeding.

 

	Section 14.	General Provisions.

 

(a)       This
Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous
oral agreements, understandings and negotiations with respect to the subject matter hereof. This Agreement may be executed in two
or more counterparts, each one of which shall be an original, with the same effect as if the signatures thereto and hereto were
upon the same instrument. This Agreement may not be amended or modified unless in writing by all of the parties hereto, and no
condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit.
Section headings herein are for the convenience of the parties only and shall not affect the construction or interpretation of
this Agreement.

 

(b)       The
Company acknowledges that in connection with the offering of the Securities: (i) the Placement Agent has acted at arms length,
are not agents of, and owe no fiduciary duties to the Company or any other person, (ii) the Placement Agent owes the Company only
those duties and obligations set forth in this Agreement and (iii) the Placement Agent may have interests that differ from those
of the Company. The Company waives to the full extent permitted by applicable law any claims it may have against the Placement
Agent arising from an alleged breach of fiduciary duty in connection with the offering of the Securities

 

[The remainder of this page has been
intentionally left blank.]

 

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If the foregoing is
in accordance with your understanding of our agreement, please sign below whereupon this instrument, along with all counterparts
hereof, shall become a binding agreement in accordance with its terms.

 

	 	Very truly yours, 
	 	SOLIGENIX, INC.
	 	a Delaware corporation 
	 	 	 	 
	 	By:	/s/
    Christopher J. Schaber, PhD
	 	 	Name:	Christopher J. Schaber, PhD
	 	 	Title:	President and CEO

 

The foregoing Placement
Agency Agreement is hereby confirmed and accepted as of the date first above written.

 

	AEGIS CAPITAL CORP.	 
	 	 
	By:	/s/
    David Bocchi	 
	 	Name:	David Bocchi	 
	 	Title:	Head of Investment Banking	 

 

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Schedule A

 

List of Lock-Up Parties

 

 

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Exhibit A

 

Form of Placement Agent’s Warrant
Agreement

 

THE REGISTERED HOLDER
OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT
AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR
HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE CLOSING DATE (DEFINED BELOW) TO ANYONE
OTHER THAN (I) AEGIS CAPITAL CORP. OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER
OF AEGIS CAPITAL CORP. OR OF ANY SUCH SELECTED DEALER.

 

THIS PURCHASE WARRANT
IS NOT EXERCISABLE PRIOR TO [________________] [DATE THAT IS 180 DAYS FROM THE CLOSING DATE OF THE OFFERING]. VOID AFTER
5:00 P.M., EASTERN TIME, [___________________] [DATE THAT IS FIVE YEARS FROM THE CLOSING DATE OF THE OFFERING].

 

COMMON STOCK PURCHASE WARRANT

 

For the Purchase of [_____] Common Stock

of

Soligenix, Inc.

 

1.           Purchase Warrant. THIS CERTIFIES
THAT, in consideration of funds duly paid by or on behalf of Aegis Capital Corp. (“Holder”), as registered owner
of this Purchase Warrant, to Soligenix, Inc., a Delaware corporation (the “Company”), Holder is entitled, at
any time or from time to time from [________________] [DATE THAT IS 180 DAYS FROM THE CLOSING DATE OF THE OFFERING] (the
“Commencement Date”), and at or before 5:00 p.m., Eastern time, [____________] [DATE THAT IS FIVE YEARS
FROM THE CLOSING DATE OF THE OFFERING] (the ”Expiration Date”), but not thereafter, to subscribe
for, purchase and receive, in whole or in part, up to [____] shares of the Company’s common stock, $0.001 par value per share
(the “Shares”), subject to adjustment as provided in Section 6 hereof. If the Expiration Date is a day on which
banking institutions are authorized by law to close, then this Purchase Warrant may be exercised on the next succeeding day which
is not such a day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees not
to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable at $2.50 per Share;
provided, however, that upon the occurrence of any of the events specified in Section 6 hereof, the rights granted
by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received upon such exercise, shall
be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise price or the adjusted
exercise price, depending on the context.

 

     

    
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2.           Exercise.

 

2.1       Exercise
Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and
delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased
payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check
or official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time,
on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented
hereby shall cease and expire.

 

2.2       Cashless
Exercise.  If at any time after the Commencement Date there is no effective registration statement registering, or no
current prospectus available for, the resale of the Shares by the Holder, then in lieu of exercising this Purchase Warrant by
payment of cash or check payable to the order of the Company pursuant to Section 2.1 above, Holder may elect to receive the number
of Shares equal to the value of this Purchase Warrant (or the portion thereof being exercised), by surrender of this Purchase
Warrant to the Company, together with the exercise form attached hereto, in which event the issue to Holder, Shares in accordance
with the following formula:

 

	X	=	Y(A-B)	 
	A	 

 

	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share; and
	 	B	=	The Exercise Price.

 

For
purposes of this Section 2.2, the fair market value of a Share is defined as follows:

 

		(i)	if
                                         the Company’s common stock is traded on a securities exchange, the value shall
                                         be deemed to be the closing price on such exchange prior to the exercise form being submitted
                                         in connection with the exercise of the Purchase Warrant; or

		(ii)	if
                                         the Company’s common stock is actively traded over-the-counter, the value shall
                                         be deemed to be the closing bid prior to the exercise form being submitted in connection
                                         with the exercise of the Purchase Warrant; if there is no active public market, the value
                                         shall be the fair market value thereof, as determined in good faith by the Company’s
                                         Board of Directors.

 

2.3
     Legend. Each certificate for the securities purchased under this Purchase Warrant shall
bear a legend as follows unless such securities have been registered under the Securities Act of 1933, as amended (the “Act”):

 

“The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”),
or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred
except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from registration
under the Securities Act and applicable state law which, in the opinion of counsel to the Company, is available.”

 

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3.           Transfer.

 

3.1       General
Restrictions. The registered Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that such Holder
will not: (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant for a period of one hundred eighty (180) days
following the Closing Date to anyone other than: (i) Aegis Capital Corp. (“Aegis”) or a selected dealer participating
in the Offering, or (ii) a bona fide officer or partner of AEGIS or of any such selected dealer, in each case in accordance with
FINRA Conduct Rule 5110(g)(1), or (b) cause this Purchase Warrant or the securities issuable hereunder to be the subject of any
hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of this Purchase
Warrant or the securities hereunder, except as provided for in FINRA Rule 5110(g)(2). On and after 180 days after the Closing
Date, transfers to others may be made subject to compliance with or exemptions from applicable securities laws. In order to make
any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed,
together with the Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall
within five (5) Business Days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase
Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate
number of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

 

3.2
     Restrictions Imposed by the Securities Act. The securities evidenced by this Purchase
Warrant shall not be transferred unless and until: (i) the Company has received the opinion of counsel for the Holder that the
securities may be transferred pursuant to an exemption from registration under the Securities Act and applicable state securities
laws, the availability of which is established to the reasonable satisfaction of the Company (the Company hereby agreeing that
the opinion of Gracin & Marlow, LLP shall be deemed satisfactory evidence of the availability of an exemption), or (ii) a
registration statement or a post-effective amendment to the Registration Statement relating to the offer and sale of such securities
has been filed by the Company and declared effective by the U.S. Securities and Exchange Commission (the ”Commission”)
and compliance with applicable state securities law has been established.

 

4.           Registration
Rights.

 

4.1       Demand
Registration.

 

4.1.1       Grant
of Right. The Company, upon written demand (a “Demand Notice”) of the Holder(s) of at least 51% of the
Purchase Warrants and/or the underlying Shares (“Majority Holders”), agrees to register, on one occasion, all or any
portion of the Shares underlying the Purchase Warrants (collectively, the “Registrable Securities”). On such
occasion, the Company will file a registration statement with the Commission covering the Registrable Securities within sixty
(60) days after receipt of a Demand Notice and use its reasonable best efforts to have the registration statement declared effective
promptly thereafter, subject to compliance with review by the Commission; provided, however, that the Company shall
not be required to comply with a Demand Notice if the Company has filed a registration statement with respect to which the Holder
is entitled to piggyback registration rights pursuant to Section 4.2 hereof and either: (i) the Holder has elected to participate
in the offering covered by such registration statement or (ii) if such registration statement relates to an underwritten primary
offering of securities of the Company, until the offering covered by such registration statement has been withdrawn or until thirty
(30) days after such offering is consummated. The demand for registration may be made at any time during a period of four (4)
years beginning on the Commencement Date. The Company covenants and agrees to give written notice of its receipt of any Demand
Notice by any Holder(s) to all other registered Holders of the Purchase Warrants and/or the Registrable Securities within ten
(10) days after the date of the receipt of any such Demand Notice.

 

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4.1.2
       Terms. The Company shall bear all fees and expenses attendant to the registration
of the Registrable Securities pursuant to Section 4.1.1, but the Holders shall pay any and all underwriting commissions and the
expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities.
The Company agrees to use its reasonable best efforts to cause the filing required herein to become effective promptly and to
qualify or register the Registrable Securities in such States as are reasonably requested by the Holder(s); provided, however,
that in no event shall the Company be required to register the Registrable Securities in a State in which such registration would
cause: (i) the Company to be obligated to register or license to do business in such State or submit to general service of process
in such State, or (ii) the principal shareholders of the Company to be obligated to escrow their shares of capital stock of the
Company. The Company shall cause any registration statement filed pursuant to the demand right granted under Section 4.1.1 to
remain effective for a period of at least twelve (12) consecutive months after the date that the Holders of the Registrable Securities
covered by such registration statement are first given the opportunity to sell all of such securities. The Holders shall only
use the prospectuses provided by the Company to sell the shares covered by such registration statement, and will immediately cease
to use any prospectus furnished by the Company if the Company advises the Holder that such prospectus may no longer be used due
to a material misstatement or omission. Notwithstanding the provisions of this Section 4.1.2, the Holder shall be entitled to
a demand registration under this Section 4.1.2 on only one (1) occasion and such demand registration right shall terminate on
the fifth anniversary of the effectiveness of the registration statement in accordance with FINRA Rule 5110(f)(2)(H)(iv).

 

4.2       “Piggy-Back”
Registration.

 

4.2.1       Grant
of Right. In addition to the demand right of registration described in Section 4.1 hereof, the Holder shall have the right,
for a period of no more than seven (7) years from the date of effectiveness of the registration statement in accordance with FINRA
Rule 5110(f)(2)(H)(v), to include the Registrable Securities as part of any other registration of securities filed by the Company
(other than in connection with a transaction contemplated by Rule 145(a) promulgated under the Securities Act or pursuant to Form
S-8 or any equivalent form); provided, however, that if, solely in connection with any primary underwritten public
offering for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation
on the number of shares of common stock which may be included in the Registration Statement because, in such underwriter(s)’
judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company
shall be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect
to which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Registrable Securities
shall be made pro rata among the Holders seeking to include Registrable Securities in proportion to the number of Registrable
Securities sought to be included by such Holders; provided, however, that the Company shall not exclude any Registrable
Securities unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion
of such securities in such Registration Statement or are not entitled to pro rata inclusion with the Registrable Securities.

 

4.2.2
       Terms. The Company shall bear all fees and expenses attendant to registering
the Registrable Securities pursuant to Section 4.2.1 hereof, but the Holders shall pay any and all underwriting commissions and
the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities.
In the event of such a proposed registration, the Company shall furnish the then Holders of outstanding Registrable Securities
with not less than thirty (30) days written notice prior to the proposed date of filing of such registration statement. Such notice
to the Holders shall continue to be given for each registration statement filed by the Company until such time as all of the Registrable
Securities have been sold by the Holder. The holders of the Registrable Securities shall exercise the “piggy-back”
rights provided for herein by giving written notice within ten (10) days of the receipt of the Company’s notice of its intention
to file a registration statement. Except as otherwise provided in this Purchase Warrant, there shall be no limit on the number
of times the Holder may request registration under this Section 4.2.2; provided, however, that such registration
rights shall terminate on the sixth anniversary of the Commencement Date.

 

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4.3       General
Terms.

 

4.3.1       Indemnification.
The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder
and each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20 (a) of
the Securities Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage, expense
or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing
or defending against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act
or otherwise, arising from such registration statement but only to the same extent and with the same effect as the provisions
pursuant to which the Company has agreed to indemnify the Placement Agent contained in Section 7 of the Placement Agency Agreement
between the Placement Agent and the Company, dated as of October 31, 2017.

 

4.3.2
       Exercise of Purchase Warrants. Nothing contained in this Purchase Warrant shall
be construed as requiring the Holder(s) to exercise their Purchase Warrants prior to or after the initial filing of any registration
statement or the effectiveness thereof.

 

4.3.3
       Documents Delivered to Holders. The Company shall furnish to each Holder participating
in any of the foregoing offerings and to each underwriter of any such offering, if any, a signed counterpart, addressed to such
Holder or underwriter, of: (i) an opinion of counsel to the Company, dated the effective date of such registration statement (and,
if such registration includes an underwritten public offering, an opinion dated the date of the closing under any underwriting
agreement related thereto), and (ii) a “cold comfort” letter dated the effective date of such registration statement
(and, if such registration includes an underwritten public offering, a letter dated the date of the closing under the underwriting
agreement) signed by the independent registered public accounting firm which has issued a report on the Company’s financial
statements included in such registration statement, in each case covering substantially the same matters with respect to such
registration statement (and the prospectus included therein) and, in the case of such accountants’ letter, with respect
to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer’s counsel
and in accountants’ letters delivered to underwriters in underwritten public offerings of securities. The Company shall
also deliver promptly to each Holder participating in the offering requesting the correspondence and memoranda described below
and to the managing underwriter, if any, copies of all correspondence between the Commission and the Company, its counsel or auditors
and all memoranda relating to discussions with the Commission or its staff with respect to the registration statement and permit
each Holder and underwriter to do such investigation, upon reasonable advance notice, with respect to information contained in
or omitted from the registration statement as it deems reasonably necessary to comply with applicable securities laws or rules
of FINRA. Such investigation shall include access to books, records and properties and opportunities to discuss the business of
the Company with its officers and independent auditors, all to such reasonable extent and at such reasonable times as any such
Holder shall reasonably request.

 

    	 	A-5	 

    
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4.3.4
       Underwriting Agreement. The Company shall enter into an underwriting agreement
with the managing underwriter(s), if any, selected by any Holders whose Registrable Securities are being registered pursuant to
this Section 4, which managing underwriter shall be reasonably satisfactory to the Company. Such agreement shall be reasonably
satisfactory in form and substance to the Company, each Holder and such managing underwriters, and shall contain such representations,
warranties and covenants by the Company and such other terms as are customarily contained in agreements of that type used by the
managing underwriter. The Holders shall be parties to any underwriting agreement relating to an underwritten sale of their Registrable
Securities and may, at their option, require that any or all the representations, warranties and covenants of the Company to or
for the benefit of such underwriters shall also be made to and for the benefit of such Holders. Such Holders shall not be required
to make any representations or warranties to or agreements with the Company or the underwriters except as they may relate to such
Holders, their Shares and their intended methods of distribution.

 

4.3.5
       Documents to be Delivered by Holder(s). Each of the Holder(s) participating in
any of the foregoing offerings shall furnish to the Company a completed and executed questionnaire provided by the Company requesting
information customarily sought of selling security holders.

 

4.3.6
       Damages. Should the registration or the effectiveness thereof required by Sections
4.1 and 4.2 hereof be delayed by the Company or the Company otherwise fails to comply with such provisions, the Holder(s) shall,
in addition to any other legal or other relief available to the Holder(s), be entitled to obtain specific performance or other
equitable (including injunctive) relief against the threatened breach of such provisions or the continuation of any such breach,
without the necessity of proving actual damages and without the necessity of posting bond or other security.

 

5.           New
Purchase Warrants to be Issued.

 

5.1       Partial
Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or assigned
in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for
cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or
transfer tax if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge
a new Purchase Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to
purchase the number of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

 

5.2
     Lost Certificate. Upon receipt by the Company of evidence satisfactory to it
of the loss, theft, destruction or mutilation of this Purchase Warrant and of reasonably satisfactory indemnification or the posting
of a bond, the Company shall execute and deliver a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant
executed and delivered as a result of such loss, theft, mutilation or destruction shall constitute a substitute contractual obligation
on the part of the Company.

 

6.           Adjustments.

 

6.1       Adjustments
to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the Purchase Warrant shall
be subject to adjustment from time to time as hereinafter set forth:

 

6.1.1       Share
Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding
Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective
day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding Shares,
and the Exercise Price shall be proportionately decreased.

 

    	 	A-6	 

    
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6.1.2
       Aggregation of Shares. If, after the date hereof, and subject to the provisions of Section
6.3 below, the number of outstanding Shares is decreased by a consolidation, combination or reclassification of Shares or other
similar event, then, on the effective date thereof, the number of Shares purchasable hereunder shall be decreased in proportion
to such decrease in outstanding Shares, and the Exercise Price shall be proportionately increased.

 

6.1.3
       Replacement of Securities upon Reorganization, etc. In case of any reclassification
or reorganization of the outstanding Shares other than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects
the par value of such Shares, or in the case of any share reconstruction or amalgamation or consolidation of the Company with
or into another corporation (other than a consolidation or share reconstruction or amalgamation in which the Company is the continuing
corporation and that does not result in any reclassification or reorganization of the outstanding Shares), or in the case of any
sale or conveyance to another corporation or entity of the property of the Company as an entirety or substantially as an entirety
in connection with which the Company is dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until
the expiration of the right of exercise of this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate
Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares of stock or other securities or
property (including cash) receivable upon such reclassification, reorganization, share reconstruction or amalgamation, or consolidation,
or upon a dissolution following any such sale or transfer, by a Holder of the number of Shares of the Company obtainable upon
exercise of this Purchase Warrant immediately prior to such event; and if any reclassification also results in a change in Shares
covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3.
The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications, reorganizations, share reconstructions
or amalgamations, or consolidations, sales or other transfers.

 

6.1.4
       Changes in Form of Purchase Warrant. This form of Purchase Warrant need not be changed
because of any change pursuant to this Section 6.1, and Purchase Warrants issued after such change may state the same Exercise
Price and the same number of Shares as are stated in the Purchase Warrants initially issued pursuant to this Agreement. The acceptance
by any Holder of the issuance of new Purchase Warrants reflecting a required or permissive change shall not be deemed to waive
any rights to an adjustment occurring after the Commencement Date or the computation thereof.

 

6.2
       Substitute Purchase Warrant. In case of any consolidation of the Company with,
or share reconstruction or amalgamation of the Company with or into, another corporation (other than a consolidation or share
reconstruction or amalgamation which does not result in any reclassification or change of the outstanding Shares), the corporation
formed by such consolidation or share reconstruction or amalgamation shall execute and deliver to the Holder a supplemental Purchase
Warrant providing that the holder of each Purchase Warrant then outstanding or to be outstanding shall have the right thereafter
(until the stated expiration of such Purchase Warrant) to receive, upon exercise of such Purchase Warrant, the kind and amount
of shares of stock and other securities and property receivable upon such consolidation or share reconstruction or amalgamation,
by a holder of the number of Shares of the Company for which such Purchase Warrant might have been exercised immediately prior
to such consolidation, share reconstruction or amalgamation, sale or transfer. Such supplemental Purchase Warrant shall provide
for adjustments which shall be identical to the adjustments provided for in this Section 6. The above provision of this Section
shall similarly apply to successive consolidations or share reconstructions or amalgamations.

 

    	 	A-7	 

    
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6.3
       Elimination of Fractional Interests. The Company shall not be required to issue
certificates representing fractions of Shares upon the exercise of the Purchase Warrant, nor shall it be required to issue scrip
or pay cash in lieu of any fractional interests, it being the intent of the parties that all fractional interests shall be eliminated
by rounding any fraction up or down, as the case may be, to the nearest whole number of Shares or other securities, properties
or rights.

 

7.           Reservation and Listing. The Company shall at all times reserve and keep available
out of its authorized Shares, solely for the purpose of issuance upon exercise of the Purchase Warrants, such number of Shares
or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that,
upon exercise of the Purchase Warrants and payment of the Exercise Price therefor, in accordance with the terms hereby, all Shares
and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject
to preemptive rights of any shareholder. The Company further covenants and agrees that upon exercise of the Purchase Warrants
and payment of the exercise price therefor, all Shares and other securities issuable upon such exercise shall be duly and validly
issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. As long as the Purchase Warrants
shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Shares issuable upon exercise of
the Purchase Warrants to be listed (subject to official notice of issuance) on all national securities exchanges (or, if applicable,
on the OTC Bulletin Board or any successor trading market) on which the Shares issued to the public in the Offering may then be
listed and/or quoted.

 

8.           Certain
Notice Requirements.

 

8.1       Holder’s
Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or
to receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a
shareholder of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any
of the events described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written notice
of such event at least fifteen days prior to the date fixed as a record date or the date of closing the transfer books for the
determination of the shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription
rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record
date or the date of the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver
to each Holder a copy of each notice given to the other shareholders of the Company at the same time and in the same manner that
such notice is given to the shareholders.

 

8.2
       Events Requiring Notice. The Company shall be required to give the notice described
in this Section 8 upon one or more of the following events: (i) if the Company shall take a record of the holders of its Shares
for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or
distribution payable otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution
on the books of the Company, (ii) the Company shall offer to all the holders of its Shares any additional shares of capital stock
of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right
or warrant to subscribe therefor, or (iii) a dissolution, liquidation or winding up of the Company (other than in connection with
a consolidation or share reconstruction or amalgamation) or a sale of all or substantially all of its property, assets and business
shall be proposed.

 

8.3
       Notice of Change in Exercise Price. The Company shall, promptly after an event
requiring a change in the Exercise Price pursuant to Section 6 hereof, send notice to the Holders of such event and change (“Price
Notice”). The Price Notice shall describe the event causing the change and the method of calculating same and shall
be certified as being true and accurate by the Company’s Chief Financial Officer.

 

    	 	A-8	 

    
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8.4
       Transmittal of Notices. All notices, requests, consents and other communications
under this Purchase Warrant shall be in writing and shall be deemed to have been duly made when hand delivered, or mailed by express
mail or private courier service: (i) if to the registered Holder of the Purchase Warrant, to the address of such Holder as shown
on the books of the Company, or (ii) if to the Company, to following address or to such other address as the Company may designate
by notice to the Holders:

 

If
to the Holder:

 

Aegis
Capital Corp.

810 Seventh Avenue, 11th Floor

New York, New York 10019

Attn: Mr. David Bocchi, Managing Director of Investment Banking

Fax
No.: (212) 813-1047

 

with
a copy (which shall not constitute notice) to:

 

Gracin & Marlow, LLP

The
Chrysler Building

405
Lexington Avenue, 26th Floor

New
York, NY 10174

Facsimile:
(212) 208-4657

Attention:
Leslie Marlow, Esq.

 

If
to the Company:

 

Soligenix,
Inc.

29
Emmons Drive, Suite C-10

Princeton,
NJ 08540

Attention:
Chief Executive Officer

Facsimile
No.: 

 

with
a copy (which shall not constitute notice) to:

 

Duane
Morris

Boca
Center Tower II

5100
Town Center Circle, Suite 650

Boca
Raton, Florida 33486-9000

Facsimile:
(561)634-4260

Attention:
Driscoll Ugarte, Esq.

 

9.           Miscellaneous.

 

9.1       Amendments.
The Company and Aegis may from time to time supplement or amend this Purchase Warrant without the approval of any of the Holders
in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent
with any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the
Company and Aegis may deem necessary or desirable and that the Company and Aegis deem shall not adversely affect the interest
of the Holders. All other modifications or amendments shall require the written consent of and be signed by the party against
whom enforcement of the modification or amendment is sought.

 

    	 	A-9	 

    
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9.2
      Headings. The headings contained herein are for the sole purpose of convenience of
reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase
Warrant.

 

9.3.
    Entire Agreement. This Purchase Warrant (together with the other agreements and
documents being delivered pursuant to or in connection with this Purchase Warrant) constitutes the entire agreement of the parties
hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the parties, oral
and written, with respect to the subject matter hereof.

 

9.4
     Binding Effect. This Purchase Warrant shall inure solely to the benefit of and
shall be binding upon, the Holder and the Company and their permitted assignees, respective successors, legal representative and
assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect
of or by virtue of this Purchase Warrant or any provisions herein contained.

 

9.5
     Governing Law; Submission to Jurisdiction; Trial by Jury. This Purchase Warrant shall
be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict
of laws principles thereof. The Company hereby agrees that any action, proceeding or claim against it arising out of, or relating
in any way to this Purchase Warrant shall be brought and enforced in the New York Supreme Court, County of New York, or in the
United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction
shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient
forum. Any process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified
mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall
be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. The Company and
the Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all
of its reasonable attorneys’ fees and expenses relating to such action or proceeding and/or incurred in connection with
the preparation therefor. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders
and affiliates) and the Holder hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right
to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

9.6
     Waiver, etc. The failure of the Company or the Holder to at any time enforce any of
the provisions of this Purchase Warrant shall not be deemed or construed to be a waiver of any such provision, nor to in any way
affect the validity of this Purchase Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce
each and every provision of this Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions
of this Purchase Warrant shall be effective unless set forth in a written instrument executed by the party or parties against
whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall
be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

 

9.7
     Execution in Counterparts. This Purchase Warrant may be executed in one or more counterparts,
and by the different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which
taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has been
signed by each of the parties hereto and delivered to each of the other parties hereto. Such counterparts may be delivered by
facsimile transmission or other electronic transmission.

 

9.8
      Exchange Agreement. As a condition of the Holder’s receipt and acceptance
of this Purchase Warrant, Holder agrees that, at any time prior to the complete exercise of this Purchase Warrant by Holder, if
the Company and Aegis enter into an agreement (“Exchange Agreement”) pursuant to which they agree that all
outstanding Purchase Warrants will be exchanged for securities or cash or a combination of both, then Holder shall agree to such
exchange and become a party to the Exchange Agreement.

 

[Signature
Page Follows]

 

    	 	A-10	 

    
EXECUTION COPY

    

 

IN
WITNESS WHEREOF, the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the 31st
day of October, 2017.

 

	SOLIGENIX, INC.	 
	 	 
	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    	 	A-11	 

    
EXECUTION COPY

    

 

[Form
to be used to exercise Purchase Warrant]

   

Date:
__________, 20___

  

The
undersigned hereby elects irrevocably to exercise the Purchase Warrant for ______ shares of common stock, $0.0001 par value per
share (the “Shares”), of Soligenix, Inc., a Delaware corporation (the “Company”), and hereby
makes payment of $____ (at the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares
as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase
Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.

 

or

 

The
undersigned hereby elects irrevocably to convert its right to purchase ___ Shares of the Company under the Purchase Warrant for
______ Shares, as determined in accordance with the following formula:

 

	X	=	Y(A-B)	 
	A	 

 

	Where,	 	 	 
	 	X	=	The
    number of Shares to be issued to Holder;
	 	Y	=	The
    number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The
    fair market value of one Share which is equal to $_____; and
	 	B	=	The
    Exercise Price which is equal to $______ per share

 

The
undersigned agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement
with respect to the calculation shall be resolved by the Company in its sole discretion.

 

Please
issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable,
a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been converted.

 

Signature
                                                          

 

Signature
Guaranteed                                      

 

    	 	A-12	 

    
EXECUTION COPY

    

 

INSTRUCTIONS
FOR REGISTRATION OF SECURITIES

 

	Name: 	 	 
	 	(Print in Block Letters)	 
	 	 	 
	Address: 	 	 
	 	 	 
	 	 	 

 

NOTICE:
The signature to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or
enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by
a firm having membership on a registered national securities exchange.

 

    	 	A-13	 

    
EXECUTION COPY

    

 

[Form
to be used to assign Purchase Warrant]

 

ASSIGNMENT

 

(To
be executed by the registered Holder to effect a transfer of the within Purchase Warrant): 

 

FOR
VALUE RECEIVED, __________________ does hereby sell, assign and transfer unto the right to purchase shares of common stock, $0.001
par value per share, of Soligenix, Inc., a Delaware corporation (the “Company”), evidenced by the Purchase
Warrant and does hereby authorize the Company to transfer such right on the books of the Company.

 

Dated:
__________, 20__

 

Signature
                                                          

 

Signature
Guaranteed                                      

 

NOTICE:
The signature to this form must correspond with the name as written upon the face of the within Purchase Warrant without alteration
or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or
by a firm having membership on a registered national securities exchange.

 

    	 	A-14	 

    
EXECUTION COPY

    

 

Exhibit
B

 

____________,
2017

 

Aegis
Capital Corp.

810
Seventh Avenue, 18th Floor

New
York, New York 10019

 

Re:       Soligenix,
Inc. (the “Company”)

 

Ladies
and Gentlemen:

 

This
letter agreement (this “Agreement”) is delivered to you pursuant to the Placement Agency Agreement (the “Placement
Agency Agreement”) to be entered into by the Company, as issuer, and Aegis Capital Corp., as the placement agent (the
“Placement Agent”). Upon the terms and subject to the conditions of the Placement Agency Agreement, the Company
intends to effect an offering (the “Offering”) of shares (the “Shares”) of common stock,
par value $0.001 per share of the Company and common stock purchase warrants.

 

The
undersigned recognizes that it is in the best financial interests of the undersigned, as an officer or director, or an owner of
shares, options, warrants or other securities of the Company (the “Company Securities”), that the Company complete
the proposed Offering.

 

The
undersigned further recognizes that the Company Securities held by the undersigned are, or may be, subject to certain restrictions
on transferability, including those imposed by United States federal securities laws. Notwithstanding these restrictions, the
undersigned has agreed to enter into this Agreement to further assure the Placement Agent that the Company Securities of the undersigned,
now held or hereafter acquired, will not enter the public market at a time that might impair the placement agency effort.

 

Therefore,
as an inducement to the Placement Agent to execute the Placement Agency Agreement, the undersigned hereby acknowledges and agrees
that the undersigned will not (i) offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or
otherwise dispose of, engage in any hedging or other transactions, including, without limitation, any short sale or any purchase,
sale or grant of any right (including without limitation any put or call option) with respect to, or with respect to any security
that includes, relates to, or derives any significant part of its value from (collectively a “Disposition”),
any Company Securities, or any securities convertible into or exercisable or exchangeable for, or any rights to purchase or otherwise
acquire, any Company Securities held by the undersigned or acquired by the undersigned after the date hereof, or that may be deemed
to be beneficially owned by the undersigned (collectively, the “Lock-Up Shares”), pursuant to the rules and
regulations promulgated under the Securities Act of 1933, as amended (the “Act”), and the Securities Exchange
Act of 1934, as amended, for a period commencing on the date hereof and ending 90 days after the date of the Company’s final
prospectus relating to the Offering is first filed pursuant to Rule 424(b) under the Act, (the “Lock-Up Period”),
without the prior written consent of the Placement Agent, or (ii) exercise or seek to exercise or effectuate in any manner any
rights of any nature that the undersigned has or may have hereafter to require the Company to register, under the Act, the undersigned’s
sale, transfer or other disposition of any of the Lock-Up Shares or other securities of the Company held by the undersigned, or
to otherwise participate as a selling securityholder in any manner in any registration effected by the Company under the Act during
the Lock-Up Period.

 

     

    
EXECUTION COPY

    

 

The
undersigned agrees and consents to the entry of stop transfer instructions with the Company’s transfer agent against the
transfer of any Company Securities or any securities convertible into or exercisable or exchangeable for, or any rights to purchase
or otherwise acquire, any Company Securities, held by the undersigned except in compliance with this Agreement.

 

Notwithstanding
the foregoing, and subject to the conditions below, the undersigned may transfer the Lock-Up Shares in the transactions listed
as (i)-(iv) below without the prior written consent of the Placement Agent, provided that (1) prior to such a transfer, the Placement
Agent shall have received a duplicate form of this Agreement executed and delivered by each donee, trustee, distributee or transferee,
as the case may be, and (2) no such transfer shall involve a disposition for value:

 

		(i)	as
                                         a bona fide gift or gifts;

		(ii)	to
                                         any trust for the direct or indirect benefit of the undersigned or the immediate family
                                         of the undersigned;

		(iii)	to
                                         any beneficiary of the undersigned pursuant to a will or other testamentary document
                                         or applicable laws of descent; or

		(iv)	to
                                         any corporation, partnership, limited liability company or other entity all of the beneficial
                                         ownership interests of which are held by the undersigned or the immediate family of the
                                         undersigned.

 

It
is understood that if the Placement Agency Agreement (other than the provisions thereof that survive termination) shall terminate
or be terminated prior to payment for and delivery of the Shares, you will release the undersigned from the obligations under
this Agreement.

 

Facsimile
or electronically transmitted signatures to this Agreement shall be binding and have the same force and effect as manually executed
original signatures.

 

In
furtherance of the foregoing, the Company and its transfer agent and registrar are hereby authorized to decline to make any transfer
of Lock-Up Shares if such transfer would constitute a violation or breach of this Agreement. This Agreement shall be binding on
the undersigned and the respective successors, heirs, personal representatives and assigns of the undersigned. Capitalized terms
used but not defined herein have the respective meanings assigned to such terms in the Placement Agency Agreement.

 

	 	Very truly yours,
	 	 
	 	 
	 	(Name)
	 	 
	 	 
	 	(Address)

 

    	 	B-2	 

    
EXECUTION COPY

    

 

Exhibit
C

 

Form
of Press Release

 

Soligenix,
Inc.

 

[Date]

 

Soligenix,
Inc. (the “Company”) announced today that Aegis Capital Corp., acting as the placement agent in the Company’s
registered direct offering of _______ shares of the Company’s common stock, is [waiving] [releasing] a lock-up restriction
with respect to _________ shares of the Company’s common stock held by [certain officers or directors] [an officer or director]
of the Company. The [waiver] [release] will take effect on _________, 20___, and the shares may be sold on or after such date.

 

This
press release is not an offer or sale of the securities in the United States or in any other jurisdiction where such offer or
sale is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from
registration under the Securities Act of 1933, as amended.

 

 

C-1irt-ex101_235.htm

Exhibit 10.1

 

 PURCHASE AND SALE AGREEMENT

September 3, 2017

 

 

	

	
1

 

 

 

PURCHASE AND SALE AGREEMENT

Table of Contents

 

Article 1 AGREEMENt TO PURCHASE2

	
 
	
Section 1.1
	
The Property2

	
 
	
Section 1.2
	
Purchase Price3

	
 
	
Section 1.3
	
Payment of Purchase Price4

	
 
	
Section 1.4
	
Loan Assumption6

Article 2 ESCROW 7

	
 
	
Section 2.1
	
Opening of Escrow7

	
 
	
Section 2.2
	
Closing Date8

	
 
	
Section 2.3
	
Escrow Instructions9

	
 
	
Section 2.4
	
Conveyance of Title9

	
 
	
Section 2.5
	
Conditions to Buyer’s Obligations to Purchase10

	
 
	
Section 2.6
	
Conditions to Seller’s Obligation to Sell12

	
 
	
Section 2.7
	
Delivery of Documents by Escrow Holder13

 

Article 3 Inspections and review14

	
 
	
Section 3.1
	
Access to Books and Records; Items to be Inspected and Revewied by Buyer14

	
 
	
Section 3.2
	
Physical Inspection15

	
 
	
Section 3.3
	
Approval of Title16

 

Article 4 PRORATIONS, CLOSING COSTS, AND DEPOSITS18

	
 
	
Section 4.1
	
Proration of Taxes18

	
 
	
Section 4.2
	
Assumable Loans18

	
 
	
Section 4.3
	
Proration of Rents18

	
 
	
Section 4.4
	
Deposits19

	
 
	
Section 4.5
	
Utilities19

	
 
	
Section 4.6
	
Property Contracts19

	
 
	
Section 4.7
	
Insurance19

	
 
	
Section 4.8
	
Other19

	
 
	
Section 4.9
	
Closing Costs19

	
 
	
Section 4.10
	
Closing Statement20

	
 
	
Section 4.11
	
Liquidated Damages20

	
 
	
Section 4.12
	
Breach by Seller21

(i)

 

1

 

	
 
	
Section 4.13
	
General21

 

 

Article 4 as-is purchase; release; representations and warranties 21

	
 
	
Section 5.1
	
Disclaimer; Live Oak Repairs21

	
 
	
Section 5.2
	
Release and Waiver24

	
 
	
Section 5.3
	
Waiver of General Release Defenses24

	
 
	
Section 5.4
	
Natural Hazards24

	
 
	
Section 5.5
	
Lead Warning Statement25

	
 
	
Section 5.6
	
Radon25

	
 
	
Section 5.7
	
Survival25

	
 
	
Section 5.8
	
Representations25

	
 
	
Section 5.9
	
Representations and Warranties of Seller26

Article 6 miscellaneous31

	
 
	
Section 6.1
	
Covenants of Seller Pending Closing31

	
 
	
Section 6.2
	
Risk of Physical Loss33

	
 
	
Section 6.3
	
Condemnation34

	
 
	
Section 6.4
	
Inentionally Omitted34

	
 
	
Section 6.5
	
Attorney’s Fees34

	
 
	
Section 6.6
	
Waiver of Jury Trial34

	
 
	
Section 6.7
	
Notices34

	
 
	
Section 6.8
	
Entire Agreement35

	
 
	
Section 6.9
	
Successors35

	
 
	
Section 6.10
	
Assignment35

	
 
	
Section 6.11
	
Governing Law; Jurisdiction36

	
 
	
Section 6.12
	
Headings36

	
 
	
Section 6.13
	
Time36

	
 
	
Section 6.14
	
Time Period Communications36

	
 
	
Section 6.15
	
Counterparts36

	
 
	
Section 6.16
	
Brokerage Commissions37

	
 
	
Section 6.17
	
Information Report37

	
 
	
Section 6.18
	
Independent Counsel37

	
 
	
Section 6.19
	
Acceptance of Deed37

	
 
	
Section 6.20
	
Buyer’s Delivery of Work Product37

	
 
	
Section 6.21
	
Intentionally Omitted38

	
 
	
Section 6.22
	
No Third Party Beneficiary38

	
 
	
Section 6.23
	
Limited Liability38

	
 
	
Section 6.24
	
Seller’s Maximum Aggregate Liability; Minimum Claim38

	
 
	
Section 6.25
	
Conditions to Closing39

	
 
	
Section 6.26
	
Incorporation39

 

 

 

 

 

(ii)

 

2

 

 

 

 

List of Schedules and Exhibits 

 

Exhibit A-1:Legal Description – Live Oak Property

Exhibit A-2:Legal Description – Tides Property

Exhibit A-3:Legal Description – Tides Vacant Land Property

Exhibit A-4:Legal Description – Cherry Grove Property

Exhibit A-5:Legal Description – Brunswick Point Property

Exhibit A-6:Legal Description – Creekside Property

Exhibit A-7:Legal Description – Schirm Farms Property 

Exhibit A-8:Legal Description – Hartshire Property 

Exhibit A-9:Legal Description – Kensington Property 

Exhibit A-10:Legal Description – Riverchase Property

Exhibit B-1:Loan Documents – Hartshire Seller

Exhibit B-2:Loan Documents – Brunswick Point Seller

Exhibit B-3:Loan Documents – Creekside Seller

Exhibit C:Defeased Loans

Exhibit D-1:Deed – Brunswick Point

Exhibit D-2:Deed – Cherry Grove

Exhibit D-3:Deed -  Creekside 

Exhibit D-4:Deed – Live Oak

Exhibit D-5:Deed – Tides and Tides Vacant Land

Exhibit E:Original Assignment of Leases

Exhibit F:Original Assignment of Contracts

Exhibit G:Original Bill of Sale

Exhibit H:Due Diligence Items

Exhibit I:Inventory of Personal Property 

Exhibit J:Intentionally Omitted

Exhibit K:Form of Assignment and Assumption of Limited Liability Company Interest

Exhibit L:Form of Survey Affidavit of No Change

Exhibit M:Form of Non-Imputation Affidavit

Exhibit N:Form of Auditor Representation Letter

 

Schedule 1:Selling Entities and Real Property 

Schedule 4.9(c):Transfer/Documentary Stamp Tax, Title Premium and Search and Exam Fee Allocations

Schedule 5.1(c):Live Oak Repairs

Schedule 5.9(b):IN/OH Property Owner’s Organizational Documents

Schedule 5.9(h):Pending Litigation

Schedule 5.9(k)-1:Rent Roll

Schedule 5.9(k)-2:Arrearage Report 

Schedule 5.9(l):Property Contracts

(iii)

 

3

Execution Copy

 

 

PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is made as of the 3rd day of September, 2017 (the “Effective Date”), by and between THE ENTITIES LISTED ON SCHEDULE 1 ATTACHED HERETO, each a Delaware limited liability company, with an address c/o Hamilton Point Investments LLC, 2 Huntley Road, Old Lyme, Connecticut 06371 (individually and collectively as the context may require, “Property Seller”), HPI REAL ESTATE OPPORTUNITY FUND III, LLC, a Delaware limited liability company, with an address c/o Hamilton Point Investments LLC, 2 Huntley Road, Old Lyme, Connecticut 06371 (“Entity Seller” and collectively with the Property Seller as the context may require, “Seller”) and INDEPENDENCE REALTY OPERATING PARTNERSHIP, LP, a Delaware limited partnership, with an address c/o Independence Realty Trust, Two Liberty Place, 50 S. 16th Street, Suite 3575, Philadelphia, Pennsylvania 19102 (“Buyer”).

 

RECITALS:

A.Each Property Seller is the owner of the GA/LA/NC/SC Real Property (as defined below) and the GA/LA/NC/SC Improvements (as defined below) set forth opposite its name on Schedule 1, and the GA/LA/NC/SC Personal Property (as defined below) associated with such GA/LA/NC/SC Real Property and GA/LA/NC/SC Improvements.

B.The Entity Seller is the owner of one hundred percent (100%) of the limited liability company interests in (i) HPI Hartshire LLC, a Delaware limited liability company (“Hartshire Property Owner”), (ii) HPI Kensington Commons LLC, a Delaware limited liability company (“Kensington Property Owner”), (iii) HPI Riverchase LLC, a Delaware limited liability company (“Riverchase Property Owner”) and (iv) HPI Schirm Farms LLC, a Delaware limited liability company (“Schirm Farms Property Owner” and collectively with the Hartshire Property Owner, Kensington Property Owner and Riverchase Property Owner, individually and collectively as the context may require, the “IN/OH Property Owner” and together with Property Seller hereinafter collectively referred to as the “Property Owners”).  Each IN/OH Property Owner is the owner of the IN/OH Real Property (as defined below) and the IN/OH Improvements (as defined below) set forth opposite its name on Schedule 1, and the IN/OH Personal Property (as defined below) associated with such IN/OH Real Property and IN/OH Improvements.

C.Property Seller desires to sell, and Buyer desires to purchase, the GA/LA/NC/SC Property (as hereinafter defined) upon and subject to the terms and conditions hereinafter set forth.

D.Entity Seller desires to sell, transfer and assign and Buyer desires to acquire and assume (i) one hundred percent (100%) of the limited liability company interests in Hartshire Property Owner (the “Hartshire Limited Liability Company Interests”), (ii) one hundred percent (100%) of the limited liability company interests in Kensington Property Owner (the “Kensington Limited Liability Company Interests”), (iii) one hundred percent (100%) of the limited liability company interests in Riverchase Property Owner (the “Riverchase Limited 

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Liability Company Interests”) and (iv) one hundred percent (100%) of the limited liability company interests in Schirm Farms Property Owner (the “Schirm Farms Limited Liability Company Interests” and collectively with the Hartshire Limited Liability Company Interests, Kensington Limited Liability Company Interests and Riverchase Limited Liability Company Interests, individually and collectively as the context may require, the “Limited Liability Company Interests”).

AGREEMENTS:

NOW, THEREFORE, in consideration of the representations, warranties, agreements, covenants and conditions contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer agree as follows: 

ARTICLE 1
AGREEMENT TO PURCHASE

1.1The Property.  Subject to all of the terms, conditions and provisions of this Agreement, and for the consideration herein set forth: 

(a)Property Seller hereby agrees to sell and Buyer hereby agrees to buy that certain real property (the “GA/LA/NC/SC Real Property”) legally described on Exhibits A-1 through A-6 attached hereto, which GA/LA/NC/SC Real Property is improved with one or more multifamily apartment buildings (the “GA/LA/NC/SC Improvements”), together with Property Seller’s interest (if any) in and to (i) all appurtenances, streets, alleys, easements, rights-of-way in or to all streets or other interests in, on, across, in front of, abutting, or adjoining the GA/LA/NC/SC Real Property, (ii) all rights in contracts, agreements, leases, warranties, guarantees and bonds respecting the GA/LA/NC/SC Real Property and GA/LA/NC/SC Improvements, (iii) all licenses, permits, authorizations and approvals issued by governmental authorities respecting the GA/LA/NC/SC Real Property and GA/LA/NC/SC Improvements, (iv) all plans, specifications and surveys of the GA/LA/NC/SC Real Property and GA/LA/NC/SC Improvements, and (v) all tangible personal property (“GA/LA/NC/SC Personal Property”) owned by Property Seller and located at the GA/LA/NC/SC Improvements as described on Exhibit I attached hereto, (vi) all intangible personal property and intellectual property owned by Property Seller respecting the GA/LA/NC/SC Real Property and GA/LA/NC/SC Improvements including, without limitation, any and all copyrights, trademarks and goodwill, (vii) all of the rights, title, interests, privileges and appurtenances which are related to or used in connection with the GA/LA/NC/SC Real Property and GA/LA/NC/SC Improvements including, but not limited to, all applicable websites, domain names and artwork, air rights, development rights, sewer rights, mineral rights and water rights related to the GA/LA/NC/SC Real Property and/or GA/LA/NC/SC Improvements.  The GA/LA/NC/SC Real Property, the GA/LA/NC/SC Improvements, the GA/LA/NC/SC Personal Property and all other items and rights described above in this Section 1.1(a) and set forth on Schedule 1 attached hereto and that certain real property (the “IN/OH Real Property”) legally described on Exhibits A-7 through A-10 attached hereto, which IN/OH Real Property is improved with one or more multifamily apartment buildings (the “IN/OH Improvements”), together with IN/OH Property Owner’s interest (if any) in and to (i) all appurtenances, streets, alleys, easements, rights-of-way in or to all streets or other 

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interests in, on, across, in front of, abutting, or adjoining the IN/OH Real Property, (ii) all rights in contracts, agreements, leases, warranties, guarantees and bonds respecting the IN/OH Real Property and IN/OH Improvements, (iii) all licenses, permits, authorizations and approvals issued by governmental authorities respecting the IN/OH Real Property and IN/OH Improvements, (iv) all plans, specifications and surveys of the IN/OH Real Property and IN/OH Improvements, and (v) all tangible personal property (“IN/OH Personal Property”) owned by IN/OH Property Owner and located at the IN/OH Improvements as described on Exhibit I attached hereto, (vi) all intangible personal property and intellectual property owned by IN/OH Property Owner respecting the IN/OH Real Property and IN/OH Improvements including, without limitation, any and all copyrights, trademarks and goodwill, (vii) all of the rights, title, interests, privileges and appurtenances which are related to or used in connection with the IN/OH Real Property and IN/OH Improvements including, but not limited to, all applicable websites, domain names and artwork, air rights, development rights, sewer rights, mineral rights and water rights related to the IN/OH Real Property and/or IN/OH Improvements are individually referred to herein as an “Individual Property” and collectively referred to herein as the “Property.”  Notwithstanding any provision to the contrary herein, it is acknowledged and agreed that the IN/OH Real Property and IN/OH Improvements comprising the Kensington Property (as defined below) consists of 264 condominium units located at the Kensington Property, as such Units are numbered, described and shown of record in the Declaration of Condominium and By-Laws of Condominium Association for Kensington Condominium (the “Declaration”), of record as Instrument No. 201312300211669, Recorder’s Office, Franklin County, Ohio; and in Condominium Plat Book 236, Page 91, Recorder’s Office, Franklin County, Ohio (the “Plat”). The property described and/or depicted in the Declaration and the Plat shall hereinafter be referred to collectively as the “Condominium”. The Kensington Property Owner’s right, title and interest in the Units shall include all of Kensington Property Owner’s undivided interest in all of the common elements in the Condominium, all of Kensington Property Owner’s declarant rights and any and all of Kensington Property Owner’s rights as an officer or director of the Association for the Condominium.

(b)Entity Seller agrees to sell and Buyer agrees to buy, free and clear of any and all liens and encumbrances, the Limited Liability Company Interests.

1.2Purchase Price.  Subject to Section 5.1(b) hereof, the purchase price which Seller agrees to accept and Buyer agrees to pay for the GA/LA/NC/SC Property and the Limited Liability Company Interests is the aggregate sum of TWO HUNDRED TWENTY-EIGHT MILLION ONE HUNDRED FORTY-FOUR THOUSAND AND 00/100 DOLLARS ($228,144,000.00) (the “Purchase Price”). Seller and Buyer agree that the Purchase Price shall be attributable among the Individual Properties pursuant to purchase price allocations determined by Buyer and reasonably approved by Seller prior to the expiration of the Due Diligence Period (as defined below) (the “Individual Property Allocations”).  Seller and Buyer agree that the Individual Property Allocations may be further allocated among (i) the Real Property, (ii) the Improvements, and (iii) the Personal Property, in each case with respect to each Individual Property as may be determined by mutual agreement of Seller and Buyer for federal, state and local tax purposes.

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1.3Payment of Purchase Price.  The Purchase Price shall be paid by Buyer as follows:

(a)Deposit.  Within five (5) business days after the Effective Date, Buyer shall deliver to Escrow Holder (as hereinafter defined) the sum of FIVE MILLION AND 00/100 DOLLARS ($5,000,000.00) (together with any interest thereon, the “Deposit”).  Immediately upon delivery thereof by Buyer, the Deposit shall be deposited by Escrow Holder in an interest-bearing account with interest thereon to accrue for the benefit of Buyer, and such Deposit shall be applied in accordance with the terms of this Agreement.  Upon the Defeasance Close of Escrow (as hereinafter defined), a portion of the Deposit equal to Three Million Three Hundred Thirty-Three Thousand Three Hundred Thirty-Three and 33/100 Dollars ($3,333,333.33) (the “Defeasance Property Deposit”) shall be applied as a credit to the Purchase Price payable at the Defeasance Closing (as defined below) in accordance with the Individual Property Allocations for the Defeasance Property (as defined below) (the “Defeasance Property Purchase Price”).  Upon the Assumption Close of Escrow, the remaining portion of the Deposit (e.g., $1,666,666.67 plus any interest accrued on the Deposit) (the “Assumption Property Deposit” and together with the Defeasance Property Deposit collectively referred to herein as the “Deposit”) shall be applied as a credit to the Purchase Price payable at the Assumption Closing (as defined below) in accordance with the Individual Property Allocations for the Assumption Property (as defined below) (the “Assumption Property Purchase Price” and together with the Defeasance Property Purchase Price collectively referred to herein as the “Purchase Price”).  A portion of the Deposit in the amount of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) shall be deemed earned by Seller as of the date hereof and shall be non-refundable to Buyer except as expressly set forth herein (the “Non-Refundable Portion”); provided, however, that a portion of the Non-Refundable Portion equal to One Hundred Sixty-Six Thousand Six Hundred Sixty-Sixty and 67/100 Dollars ($166,666.67) shall be applied as a credit to the Defeasance Property Purchase Price at the Defeasance Closing, and the remainder of the Non-Refundable Portion (e.g., $83,333.33) shall be applied as a credit to the Assumption Property Purchase Price at the Assumption Closing.

(b)Assumed Indebtedness.  Buyer shall assume (i) that certain mortgage loan in the original principal amount of Sixteen Million and 00/100 Dollars ($16,000,000.00) made to the Hartshire Property Owner, (ii) that certain mortgage loan in the original principal amount of Nineteen Million and 00/100 Dollars ($19,000,000.00) made to the Brunswick Point Seller and (iii) that certain mortgage loan in the original principal amount of Twenty-Three Million Five Hundred Thousand and 00/100 Dollars ($23,500,000.00) made to the Creekside Seller (collectively, the “Assumable Loans”).  The documents evidencing and securing the Assumable Loans are listed on Exhibits B-1 through B-3 attached hereto (collectively, the “Loan Documents”).   Buyer shall take title to the Hartshire Property (through its purchase of the Hartshire Limited Liability Company Interests), the Brunswick Point Property and the Creekside Property subject to and shall assume the Assumable Loans (for purposes hereof, the “Loan Assumption”) as more fully set forth in Section 1.4 below.  At the Assumption Closing, Buyer shall be entitled to a credit against the Assumption Purchase Price equal to the outstanding principal balance of the Assumable Loans.  Seller represents that the outstanding principal balance of the Assumable Loans is Fifty-Eight Million Five Hundred Thousand and 00/100 Dollars ($58,500,000.00). 

(c)Balance of Purchase Price.  

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(i)The Defeasance Property Purchase Price, less the Defeasance Property Deposit, as adjusted by the prorations and expenses to be received or paid by Buyer at the Defeasance Closing pursuant to this Agreement, shall be paid by Buyer to Escrow Holder prior to the Defeasance Closing Date (as hereinafter defined) in cash or by wire transfer of funds.  

(ii)The sum of (A) the Assumption Property Purchase Price and (B) if Buyer does not exercise its right to terminate this Agreement solely with respect to the Live Oak Property pursuant to Section 5.1(b) below, the Individual Property Allocation for the Live Oak Property (as defined below), less (A) the Assumption Property Deposit and (B) the outstanding principal balance of the Assumable Loans, as adjusted by the prorations and expenses to be received or paid by Buyer at the Assumption Closing pursuant to this Agreement, shall be paid by Buyer to Escrow Holder prior to the Assumption Closing Date (as hereinafter defined) in cash or by wire transfer of funds.  

(d)Net Amount to Seller; Defeasance and other Prepayment Penalties.  It is expressly agreed that except as set forth in subsection (c) above, the Purchase Price shall be net to Seller.  Buyer shall pay all costs associated with the prepayment or defeasance of all mortgage loans set forth on Exhibit C attached hereto (the “Defeased Loans”), including but not limited to, prepayment or yield maintenance premiums, defeasance premiums above the principal amount of the Defeased Loans, defeasance deposits, custodial fees, accountants’ fees, successor borrower fees and servicer fees and expenses including legal fees (all of the foregoing, the “Defeasance/Prepayment Costs”).  Buyer acknowledges that the cost of the securities required to defease the Defeased Loans will most likely exceed the principal balance of the Defeased Loans and that Buyer is responsible for the payment of such excess.  Seller shall pay only the outstanding principal amount of the Defeased Loans at the Defeasance Close of Escrow from the Defeasance Property Purchase Price and any of Seller’s counsel fees with respect to coordinating the defeasance of the Defeased Loans.  Seller shall retain, at Buyer’s expense, a defeasance consultant reasonably acceptable to Buyer on terms acceptable to Buyer (the “Defeasance Consultant”).  Seller shall take all actions reasonable and necessary to coordinate and complete the defeasance of the Defeased Loans with the Defeasance Consultant and, except for paying the Defeasance/Prepayment Costs at the Defeasance Closing and otherwise reasonably cooperating with Seller and the Defeasance Consultant, Buyer shall have no other responsibilities with respect thereto.  At Buyer’s option upon written notice to Seller, Buyer may instead seek to assume one or more of the Defeased Loans, in which case such loan(s) shall each be treated as an Assumable Loan for purposes hereof and shall be governed by Section 1.4 below, and such Individual Property shall thereafter be treated as part of the Assumption Property for purposes hereof.

(e)Indivisible Economic Package.  Except as otherwise expressly set forth in Section 5.1(b) (Live Oak Repairs), Section 6.2 (Risk of Physical Loss) and Section 6.3 (Condemnation) below, Buyer has no right to purchase, and Seller has no obligation to sell, less than (i) all of the Property owned by Property Seller and (ii) all of the Limited Liability Company Interests, it being the express agreement and understanding of Buyer and Seller that, as a material inducement to Seller and Buyer to enter into this Agreement, Buyer has agreed to purchase, and Property Seller and Entity Seller, as applicable, have agreed to sell, in the aggregate, each of the Individual Properties owned by Property Seller and the Limited Liability Company Interests, subject to and in accordance with the terms and conditions hereof.

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1.4Loan Assumption.

 

(a)Seller shall make written request within five (5) business days after the Effective Date for the application package from the lender servicing the Assumable Loans (the “Lender”) that is required for the Loan Assumption (the “Assumption Package”).

(b)Buyer shall submit a written application to the Lender for the Loan Assumption within ten (10) days after receipt of the Assumption Package.  Buyer shall then proceed and diligently pursue in good faith obtaining a conditional commitment from Lender for the Loan Assumption as of Closing (the “Assumption Approval”).  Buyer shall pay all deposits, fees, payments and expenses required or charged by Lender, including without limitation processing fees, application fees, assumption fees, inspection fees, closing fees, Lender’s counsel fees and, except for the Assumption Consultant (as defined below), expenses of consultants arising out of resulting from or related to the Assumption Approval (the “Assumption Costs”), and Buyer’s obligations, liabilities and duties in this regard shall survive the Closing or earlier termination of this Agreement.  Seller’s only expense with respect to the Assumption shall be the payment of fees to 1st Service Solutions, Inc. (the “Assumption Consultant”) retained by Seller to expedite the Assumption Approval.  Buyer shall reasonably cooperate in good faith with the requests of the Assumption Consultant in seeking the Assumption Approval.

(c)Buyer’s agreement to obtain Assumption Approval shall be conditioned upon Lender approving Buyer for assumption of the Assumable Loans on terms and conditions that are the same as the terms and conditions of the Loan Documents in all material respects and without material modification to the Loan Documents.  Buyer shall not request any material modifications to the terms of the Loan Documents in seeking the Assumption Approval; provided, however, it shall be a condition of the assumption of the Assumable Loans that (i) none of Buyer or any other parties that Lender may require to incur liability in the form of recourse guaranties or environmental indemnities in order to approve Buyer for assumption of the Assumable Loans (each a “Buyer Guaranty Party”) shall be liable on the Assumable Loans for any claims, actions, causes of action, suits, proceedings, demands, rights, damages, costs, expenses or other compensation whatsoever first arising prior to the Closing Date under recourse guaranties or environmental indemnities (collectively, “Pre-Closing Claims”); or (ii) if the Lender requires Buyer or any Buyer Guaranty Party to be liable on the Assumable Loans for Pre-Closing Claims as a condition to the Assumption Approval, then an affiliate of Seller reasonably acceptable to Buyer shall deliver to Buyer at the Closing an indemnification agreement in form and substance mutually acceptable to Buyer and Seller wherein such affiliate of Seller shall indemnify, defend (with counsel reasonably acceptable to Buyer) and hold harmless Buyer any each Buyer Guaranty Party with respect to all Pre-Closing Claims.  Within five (5) days after receiving the initial draft of the assumption agreement, Buyer shall notify Seller whether the language with respect to the assumption of guarantor liability is acceptable to Buyer for purposes of this Section 1.4(c).  In the event Lender requires any modifications to the terms of the Loan Documents, other than ministerial changes needed to reflect the assumption of the Assumable Loans, the substitution of the borrower and any guarantors and changes to the transfer provisions in light of Buyer’s structure, Buyer shall have the right to terminate this Agreement as provided in Section 2.5 and receive a return of the Deposit only, less the Non-Refundable Portion which shall be paid to Seller.

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(d)In connection with the Assumption Approval, Buyer shall be entitled to obtain a statement from Lender to Buyer for assumption purposes that includes (a) confirmation as to the outstanding principal balance and all accrued interest and other charges due with respect to the Loan as of the Closing; (b) any reserve deposits which will be held by Lender as of the Closing and (c) confirmation that there are no known outstanding defaults or circumstances that with the passage of time or giving of notice, or both, will become a default under the Loan Documents.

(e)Seller shall cooperate with Buyer in pursuing the Assumption Approval, but it shall be a condition of the assumption that Seller, and any other parties with liability on the Assumable Loans in the form of recourse guaranties or environmental indemnities (each a “Seller Guaranty Party”), be released from liability on the Assumable Loans for all claims, actions, causes of action, suits, proceedings, demands, rights, damages, costs, expenses or other compensation whatsoever first arising from and after the date of Closing under recourse guaranties or environmental indemnities (collectively, “Post-Closing Claims”).  If Lender does not grant such release, an entity reasonably acceptable to Seller shall deliver to Seller at the Closing an indemnification agreement in form and substance mutually acceptable to Buyer and Seller wherein Buyer shall indemnify, defend (with counsel reasonably acceptable to Seller) and hold harmless Seller and each Seller Guaranty Party with respect to all Post-Closing Claims.  Within five (5) days after receiving the initial draft of the assumption agreement, Seller shall notify Buyer whether the release language with respect to Post-Closing Claims is acceptable to Seller for purposes of this Section 1.4(e).

(f)Buyer will credit Seller with the amount of any escrows held by Lender in connection with the Assumable Loans, so long as such escrows remain with the Loan and are transferred to Buyer at Closing.

ARTICLE 2
ESCROW

2.1Opening of Escrow.  Closing of the sale of the GA/LA/NC/SC Property and the Limited Liability Company Interests shall take place through an escrow (“Escrow”) to be established with Land Services USA, Inc., 1835 Market Street, Suite 420, Philadelphia, Pennsylvania 19103, Attn: Michael G. Moyer, Esquire, 215-255-8989, mmoyer@lsutitle.com (Escrow Holder”).  Escrow shall be deemed open upon delivery of a fully executed copy of this Agreement to Escrow Holder (“Opening of Escrow”).  Upon receipt of a fully executed copy of this Agreement, Escrow Holder shall compile any counterpart signatures into one document, execute the Escrow Holder’s acceptance attached hereto and date the acceptance the date of Opening of Escrow.  Escrow Holder shall immediately distribute to Buyer and Seller fully executed copies of this Agreement and notify Buyer and Seller of the date of Opening of Escrow.

2.2Closing Date.  

(a)The “Defeasance Closing Date” shall occur on the date that is fifteen (15) business days after the expiration of the Due Diligence Period or, at Buyer’s request, on such earlier date as mutually agreed upon between the parties and reasonably practical under the circumstances.   The terms “Defeasance Close of Escrow” and “Defeasance Closing” shall mean 

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the date by which each of the parties is required to deliver to Escrow Holder all of the documents and funds required by this Agreement with respect to the Defeasance Property, and to notify the Escrow Holder that all conditions precedent to the release of such documents and funds from Escrow for delivery to the persons entitled thereto have occurred.  

(b)The “Assumption Closing Date” shall occur on the date that is fifteen (15) days after receipt of the Assumption Approval or, at Buyer’s request, on such earlier date after the Assumption Approval as mutually agreed upon between the parties and reasonably practical under the circumstances.   The terms “Assumption Close of Escrow” and “Assumption Closing” shall mean the date by which each of the parties is required to deliver to Escrow Holder all of the documents and funds required by this Agreement with respect to the Assumption Property and, if Buyer does not exercise its right to terminate this Agreement solely with respect to the Live Oak Property pursuant to Section 5.1(b) below, the Live Oak Property, and to notify the Escrow Holder that all conditions precedent to the release of such documents and funds from Escrow for delivery to the persons entitled thereto have occurred.   Buyer shall use commercially reasonable efforts to obtain the Assumption Approval within ninety (90) days after the Effective Date.  If, despite using commercially reasonable efforts, Buyer is unable to obtain the Assumption Approval within ninety (90) days after the Effective Date, Buyer shall be granted an additional thirty-five (35) days to obtain the Assumption Approval so long as Buyer continues to use commercially reasonable efforts to obtain the Assumption Approval.  Notwithstanding anything to the contrary set forth herein, in the event the Assumption Approval is not obtained within one hundred twenty-five (125) days after the Effective Date despite Buyer’s commercially reasonable efforts, Seller may terminate this Agreement, in which event Buyer shall be entitled to the return of the Deposit less the Non-Refundable Portion which shall be paid to Seller, and the parties shall have no further obligations hereunder other than those which expressly survive the termination of this Agreement. 

(c)As used herein, (i) the term “Closing Date” shall mean the Defeasance Closing Date or the Assumption Closing Date as the context may require; (ii) the term “Close of Escrow” shall mean the Defeasance Close of Escrow or the Assumption Close of Escrow as the context may require; and (iii) the term “Closing” shall mean the Defeasance Closing or the Assumption Closing as the context may require. 

(d)As used herein, (i) the term “Defeasance Property” shall collectively refer to (A) the Individual Property known as Tides at Calabash and located at 7112 Town Center Road, Sunset, North Carolina (the “Tides Property”), (B) the Individual Property comprised of vacant land adjacent to the Tides Property (the “Tides Vacant Land”), (C) the Individual Property known as Kensington Commons Residences and located at 6300 Refugee Road, Canal Winchester, Ohio (the “Kensington Property”), (D) the Individual Property known as Schirm Farms and located at 6340 Saddler Way, Canal Winchester, Ohio (the “Schirm Farms Property”), (E) the Individual Property known as Cherry Grove Commons and located at 1100 David Street, North Myrtle Beach, South Carolina (the “Cherry Grove Property”) and (F) the Individual Property known as Riverchase Apartments and located at 2730 Riverchase Drive, Indianapolis, Indiana (the “Riverchase Property”); (ii) the term “Assumption Property” shall collectively refer to (A) the Individual Property known as Hartshire Lakes and located at 3170 Hartshire South Drive, Bargersville, Indiana (the “Hartshire Property”), (B) the Individual Property known as Brunswick Point and located at 1001 Hunterstone Drive, Leland, North Carolina (the 

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“Brunswick Property”) and (C) the Individual Property known as Creekside Corners Apartments and located at 5301 West Fairington Parkway, Lithonia, Georgia (the “Creekside Corners Property”); and (iii) the term “Live Oak Property” shall refer to the Individual Property known as Live Oak Trace and located at 7615 Magnolia Beach Road, Denham Springs, Louisiana. 

2.3Escrow Instructions.  Articles 1, 2, 4, 5 and 6 also constitute escrow instructions to Escrow Holder.  Additionally, Buyer and Seller agree to execute any mutually acceptable form of escrow instructions as the Escrow Holder customarily requires as escrow holder in real property escrows administered by it.  In the event of a conflict between any such additional terms and provisions of this Agreement, this Agreement shall supersede and be controlling.  

2.4Conveyance of Title.  

(a)At least one (1) business day prior to the Defeasance Closing Date, Seller shall deliver to Escrow Holder (i) a deed to the Tides Property in the form attached hereto as Exhibit D-5, (ii) a deed to the Tides Vacant Land in the form attached hereto as Exhibit D-5 and (iii) a deed to the Cherry Grove Property in the form attached hereto as Exhibit D-2 (each a “Defeasance Property Deed” and collectively, the “Defeasance Property Deeds” or the “Deeds” as the context may require), which Defeasance Property Deeds shall convey all of Property Seller’s interest in fee title to the real property legally described on Exhibits A-2 through A-4 attached hereto (collectively, the “Defeasance Real Property”) subject to the Permitted Exceptions (as defined below).  Escrow Holder shall be instructed to record such Defeasance Property Deeds if and when Escrow Holder holds the instruments and funds accruing to Buyer and Seller as set forth herein and can obtain for Buyer the Defeasance Title Policies (as defined below).

(b) At least one (1) business day prior to the Assumption Closing Date, Seller shall deliver to Escrow Holder (i) a deed to the Brunswick Property in the form attached hereto as Exhibit D-1 (the “Brunswick Deed”), (ii) a deed to the Creekside Corners Property in the form attached hereto as Exhibit D-3 (the “Creekside Corners Deed”) and (iii) if Buyer does not exercise its right to terminate this Agreement solely with respect to the Live Oak Property pursuant to Section 5.1(b) below, a deed to the Live Oak Property in the form attached hereto as Exhibit D-4 (the “Live Oak Deed”; the Brunswick Deed and the Creekside Corners Deed each sometimes being individually referred to herein as an “Assumption Property Deed” and collectively as the “Assumption Property Deeds” and, together with the Live Oak Deed, sometimes being collectively referred to herein as the “Deeds” as the context may require), which Assumption Property Deeds shall convey all of Property Seller’s interest in fee title to the real property legally described on Exhibits A-5 and A-6 attached hereto (collectively, the “Assumption Real Property”) subject to the Permitted Exceptions (as defined below), and which Live Oak Deed shall convey all of Property Seller’s interest in fee title to the real property legally described on Exhibit A-1 attached hereto subject to the Permitted Exceptions.  Escrow Holder shall be instructed to (i) record such Assumption Property Deeds if and when Escrow Holder holds the instruments and funds accruing to Buyer and Seller as set forth herein and can obtain for Buyer the Assumption Title Policies (as defined below); and (ii) if Buyer does not exercise its right to terminate this Agreement solely with respect to the Live Oak Property pursuant to Section 5.1(b) below, record such Live Oak Deed if and when Escrow Holder holds the 

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instruments and funds accruing to Buyer and Seller set forth herein and can obtain for Buyer the Live Oak Title Policy (as defined below).

2.5Conditions to Buyer’s Obligation to Purchase.  Buyer’s obligation to consummate the transaction contemplated under this Agreement is expressly conditioned upon the satisfaction of each of the following conditions prior to or simultaneously with Closing:

(a)Performance by Seller.  Performance in all material respects of the obligations, covenants and deliveries required of Seller under this Agreement.

(b)Deliveries.  On or before the Closing Date, Seller shall deliver to Escrow Holder (unless indicated to be delivered directly to Buyer) the following documents and other items:

(i)An original Assignment of Leases with respect to each Individual Property being conveyed, assigning the leases by the applicable Seller to Buyer (the “Assignment of Leases”) in the form attached as Exhibit E, duly executed by the applicable Seller;

(ii)An original Assignment of Contracts with respect to each Individual Property being conveyed assigning certain contracts by the applicable Seller to Buyer (the “Assignment of Contracts”) in the form attached as Exhibit F, duly executed by the applicable Seller;

(iii)A Certificate of Non-Foreign Status (each the “Non-Foreign Affidavit”) with respect to each Seller;

(iv)Copies of all contracts relating to the Property to be assumed by Buyer pursuant to Section 3.2 (to be delivered to Buyer at the Property);

(v)An original Special Warranty Bill of Sale with respect to each Individual Property being conveyed, pursuant to which Seller conveys certain personal property associated with such Property to Buyer in the form attached as Exhibit G, duly executed by Seller;

(vi)A copy of the Closing Statement, duly executed by Seller;

(vii)All keys to the Improvements which Seller or Seller’s agents have in their possession (to be delivered to Buyer at the Property);

(viii)The original executed copy of each lease of the Property (to the extent that Seller has the original leases in its possession), including any amendments thereto (to be delivered to Buyer at the Property); 

(ix)A copy of a notice to tenants regarding the transfer of title with respect to each Individual Property.  Seller may provide a single notice with respect to each Individual Property;

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(x)A rent roll with respect to each Individual Property, certified by Seller as being true, correct and complete in all material respects and dated within three (3) days of the Closing Date;

(xi)An affidavit as to construction liens and parties in possession reasonably sufficient to the Title Company to allow it to delete from the Title Policy any exception for construction liens and parties in possession (other than the existing tenants under the Leases), which affidavit shall also include any other customary matters included in a standard seller’s title affidavit in each state where an Individual Property is located;

(xii)Any other documents, instruments or funds required to be delivered by Seller under the terms of this Agreement or other reasonable and customary items required by Escrow Holder or Title Company in order to close Escrow which have not previously been delivered; 

(xiii)A date down of Seller’s representations and warranties contained in Section 5.9 confirming that they are all true and correct as of Closing; 

(xiv)With respect to the Individual Properties located in South Carolina and Georgia, if required by law, either an affidavit of residency legally sufficient to enable Buyer not to withhold and submit a portion of the Purchase Price to the applicable taxing authority, or an affidavit of gain or similar certification to the applicable taxing authority (in such instance, the applicable percentage of gain as required by applicable law shall be submitted by Title Company from Seller’s proceeds to the taxing authority);

(xv)A Survey Affidavit of No Change in the form attached as Exhibit L with respect to the existing survey for each Individual Property delivered to Buyer as part of the Due Diligence Items (as defined below), except with respect to the property owned by the Kensington Property Owner;

(xvi)An original executed estoppel certificate from the Association for the Condominium in form and substance mutually acceptable to Buyer and Seller; 

(xvii)Solely with respect to the Assumption Closing, any documents or instruments required to be delivered to the Lender in connection with the Loan Assumption;

(xviii)A document terminating any existing property management agreement for each Individual Property, which shall include an acknowledgment that any and all fees, costs and expenses have been paid in full through and including the Closing Date;

(xix)With respect to the IN/OH Property, an affidavit and indemnity in the form attached as Exhibit M as necessary to issue a non-imputation endorsement to any new Title Policy obtained by Buyer for an IN/OH Property;

(xx)For each IN/OH Property Owner, Certificates of Good Standing and Certificates of Authority evidencing such IN/OH Property Owner’s authority to transact business in the state in which the applicable IN/OH Property is located;

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(xxi)A certification, dated as of the Closing Date, from Entity Seller attaching all organizational documents of each IN/OH Property Owner stating that such organizational documents have not been modified or amended;

(xxii)A duly executed original Assignment and Assumption of Limited Liability Company Interest for each IN/OH Property Owner (the “Assignment and Assumption”) in the form attached as Exhibit K; and

(xxiii) To the extent required by the jurisdiction in which any Individual Property is located, a properly-completed property tax transfer return or affidavit in form and substance appropriate to such jurisdiction. 

(c)Seller’s Representations and Warranties.  The representations and warranties of Seller set forth in Section 5.9 shall be true and correct in all material respects as of Closing.

(d)Assumption Approval.  Solely with respect to the Assumption Closing, the Assumption Approval shall have been obtained in accordance with the terms of this Agreement.  

The failure of any condition in this Section 2.5, to the extent not waived by Buyer, shall enable Buyer to terminate this Agreement and exercise its remedies under Section 4.12 hereof (unless there is a failure under subsection (d) above, for which Buyer shall receive a return of the Deposit only (less the Non-Refundable Portion which shall be paid to Seller), so long as it has diligently pursued the Assumption Approval in good faith). 

2.6Conditions to Seller’s Obligation to Sell.  Seller’s obligation to consummate the transaction contemplated under this Agreement is expressly conditioned upon the satisfaction of each of the following conditions prior to or simultaneously with Closing:

(a)Performance by Buyer.  Performance in all material respects of the obligations, covenants and deliveries required of Seller under this Agreement.

(b)Deliveries.  On or before the Closing Date, Buyer shall deliver to Escrow Holder (unless indicated to be delivered directly to Buyer) the following documents and other items:

(i)The original Assignment of Leases with respect to each Individual Property, duly executed by Buyer;

(ii)The original Assignment of Contracts with respect to each Individual Property, duly executed by Buyer;

(iii)A copy of the Closing Statement, duly executed by Buyer;

(iv)With respect to the Defeasance Closing Date, the balance of the Defeasance Property Purchase Price plus all costs, fees and expenses of Buyer set forth in Section 

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1.3(d) hereof, to be released upon the confirmation that the deliveries required by both the Buyer and Seller under this Agreement have been received;

(v)With respect to the Assumption Closing Date, (A) the balance of the Assumption Property Purchase Price plus all costs, fees and expenses of Buyer set forth in Section 1.3(d) hereof, to be released upon the confirmation that the deliveries required by both the Buyer and Seller under this Agreement have been received and (B) if Buyer does not exercise its right to terminate this Agreement solely with respect to the Live Oak Property pursuant to Section 5.1(b) below, the Individual Property Allocation for the Live Oak Property plus all costs, fees and expenses of Buyer set forth in Section 1.3(d) hereof, to be released upon the confirmation that the deliveries required by both the Buyer and Seller under this Agreement have been received;

(vi)Any other documents, instruments or funds required to be delivered by Buyer under the terms of this Agreement or other reasonable and customary items required by Escrow Holder or Title Company in order to close Escrow which have not previously been delivered; 

(vii)Solely with respect to the Assumption Closing, any documents or instruments required to be delivered to the Lender in connection with the Loan Assumption; and

(viii)The original Assignment and Assumption, duly executed by Buyer. 

(c)Buyer’s Representations and Warranties.  The representations and warranties of Buyer set forth in Section 2.5 shall be true and correct in all material respects as of Closing.

(d)Assumption Approval.  Solely with respect to the Assumption Closing, the Assumption Approval shall have been obtained in accordance with the terms of this Agreement. 

(e)Defeasance Title Policies.  Solely with respect to the Defeasance Closing, Escrow Holder has irrevocably committed to obtain for Buyer ALTA standard coverage owner's policies of title insurance for the Defeasance Property (collectively, the “Defeasance Title Policies”) with such endorsements as are required by Buyer and which are available in the state in which each Defeasance Property is located, issued by First American Title Insurance Company (“Title Company”) with liability in an amount equal to the Defeasance Property Purchase Price in the aggregate, showing the Defeasance Real Property vested in Buyer (or the applicable IN/OH Property Owner) subject only to the Permitted Exceptions.

(f)Assumption Title Policies.  Solely with respect to the Assumption Closing, Escrow Holder has irrevocably committed to obtain for Buyer ALTA standard coverage owner's policies of title insurance for the Assumption Property (collectively, the “Assumption Title Policies” and together with the Defeasance Title Policies and, if Buyer does not exercise its right to terminate this Agreement solely with respect to the Live Oak Property pursuant to Section 5.1(b) below, the Live Oak Title Policy (as defined below) being sometimes collectively referred to herein as the “Title Policies”) with such endorsements as are required by Buyer and 

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which are available in the state in which each Assumption Property is located, issued by Title Company with liability in an amount equal to the Assumption Property Purchase Price in the aggregate, showing the Assumption Real Property vested in Buyer (or the applicable IN/OH Property Owner) subject only to the Permitted Exceptions.

(g)Live Oak Title Policy. Solely with respect to the Assumption Closing if Buyer does not exercise its right to terminate this Agreement with respect to the Live Oak Property pursuant to Section 5.1(b) below, Escrow Holder has irrevocably committed to obtain for Buyer an ALTA standard coverage owner's policy of title insurance for the Live Oak Property (the “Live Oak Title Policy”) with such endorsements as are required by Buyer and which are available in the state in which the Live Oak Property is located, issued by Title Company with liability in an amount equal to the Individual Property Allocation for the Live Oak Property, showing the real property legally described on Exhibit A-1 vested in Buyer  subject only to the Permitted Exceptions.

The failure of any condition in this Section 2.6, to the extent not waived by Seller, shall enable Seller to terminate this Agreement and receive the Deposit as liquidated damages pursuant to Section 4.11 hereof (unless there is a failure under subsection (d) above, for which Buyer shall receive a return of the Deposit only (less the Non-Refundable Portion which shall be paid to Seller) so long as it has used commercially reasonable efforts to pursue the Assumption Approval in good faith). 

2.7Delivery of Documents by Escrow Holder.  On the Close of Escrow, Escrow Holder shall deliver to Buyer all of the items listed in Section 2.5 above which were delivered by Seller to Escrow Holder, except that Escrow Holder shall be instructed to record the original Deeds upon Close of Escrow and to deliver a conformed copy of the Deeds to Buyer after recordation thereof and Escrow Holder shall only deliver to Buyer one duplicate original of the documents submitted as duplicate originals.  Escrow Holder shall deliver the Purchase Price, less costs, expenses and prorations chargeable to Seller hereunder, to Seller by wire transfer as provided in written instructions to be furnished to Escrow Holder by Seller prior to the Close of Escrow, together with one duplicate original of all of the items listed in Section 2.6 above on the Close of Escrow and a conformed copy of the Deeds.

ARTICLE 3
INSPECTIONS AND REVIEW

3.1Access to Books and Records; Items to be Inspected and Reviewed by Buyer.  

(a)Within three (3) business days of the execution of this Agreement by Buyer and Seller, Seller shall deliver to Buyer (or make available for review) copies of the items listed in the attached Exhibit H with respect to each Individual Property, to the extent in Seller’s or its property manager’s possession or control (collectively, the “Due Diligence Items”).  Seller has not made an independent investigation to determine the truth or accuracy of any such documents and materials and except as expressly set forth in Section 5.9 hereof, shall have no liability to Buyer for any inaccuracy, misrepresentation or omission in such documents or materials.  

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(b)In addition, Seller shall provide to Buyer and Buyer’s agents or representatives (including, without limitation, its accountant and/or auditor) copies of, or shall provide Buyer reasonable access to, such information as may be reasonably requested by Buyer, and in the possession or control of Seller, or its property manager or accountants, to enable Buyer’s auditor to conduct an audit (“Rule 3-14 Audit”), in accordance with Rule 3-14 of Securities and Exchange Commission Regulation S-X (“Rule 3-14”), of the balance sheet and income statements of the Property for the year-to-date 2017 plus the two (2) immediately preceding calendar years.  Buyer will use reasonable efforts to cause the Rule 3-14 Audit to be completed within thirty (30) days from the Effective Date.  In connection with Buyer’s Rule 3-14 Audit an executive officer of Entity Seller shall execute and deliver to Buyer’s auditor a representation letter for each Individual Property (each an “Auditor Representation Letter”) in the form attached as Exhibit N.

3.2Physical Inspection.  From and after the Effective Date until 5:00 pm (ET) on the later of (a) October 3, 2017 and (b) the date which is two (2) business days after completion of the Rule 3-14 Audit (the “Due Diligence Period”), Seller shall permit Buyer, its engineers, analysts, contractors, agents and consultants, at the sole cost and expense of Buyer, to conduct physical inspections of the Property; provided, however, that notwithstanding clause (b) above, in no event shall the Due Diligence Period extend beyond forty (40) days after the Effective Date.  Such investigations may be made by Buyer and/or its agents during any normal business hours.  If this Agreement is not terminated (or deemed terminated), Buyer shall continue to have access to the Property until the Closing with the prior consent of Seller, which consent shall not be unreasonably withheld or delayed.  Seller shall cooperate fully to assist Buyer in completing such inspections and special investigations at no cost or expense to Seller.  Such inspections and investigations shall be conducted only upon no less than forty-eight (48) hours’ notice to Seller and shall be conducted at such times and in such a manner as to minimize any disruption to tenants upon the Property.  Notwithstanding any provision to the contrary herein, (a) all site visits shall be scheduled and announced forty-eight (48) hours in advance and (b) all communications regarding the scheduling of site visits and additional diligence information requests, shall be made through Owner’s representatives at KeyBanc Capital Markets: Kevin Kreshover (kkreshover@key.com) and Michael Hawkins (michael.hawkins@key.com) and not by contacting Owner or its property manager directly. Seller shall have the right, but not the obligation, to accompany Buyer during such investigations and/or inspections.  Notwithstanding the foregoing, Buyer shall not perform any invasive or destructive testing of the Property (including a Phase II investigation) without the prior written consent of Seller, which consent will not be unreasonably withheld (provided, however, if any Phase I investigation recommends a Phase II investigation, then Seller shall permit such Phase II investigation).  Buyer shall repair any and all damage to the Property or to any tenant’s property caused by such inspections or investigations in a timely manner and Buyer shall indemnify, defend (with counsel reasonably acceptable to Seller) and hold harmless Seller, its partners, members, affiliates, officers, employees, agents and consultants (the “Indemnified Parties”) from and against any liability whatsoever (including without limitation, reasonable attorneys’ costs and fees whether or not legal proceedings are initiated, and if they are, reasonable attorneys’ costs and fees at the trial level and all levels of appeal) sought by the Indemnified Parties to the extent arising from Buyer’s physical inspection of the Property or access to the Property granted hereunder to Buyer, its engineers, analysts, contractors, agents and consultants.  Buyer's indemnification obligations under this Section shall survive the recordation of the Deeds or the termination of this Agreement 

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for one (1) year.  As a condition to allowing Buyer, or its engineers, analysts, contractors, agents and consultants access to the Property, Buyer shall obtain and deliver to Seller a certificate of insurance or other evidence satisfactory to Seller that Buyer has in force adequate liability insurance in an amount not less than TWO MILLION DOLLARS ($2,000,000.00) naming Seller as additional insured, and a copy of such policy upon Seller’s request.  In addition, Buyer shall, not later than the expiration of the Due Diligence Period, advise Seller in writing of the labor, service, supply and maintenance contracts which it elects to assume.  Buyer’s obligation to purchase the GA/LA/NC/SC Property and the Limited Liability Company Interests pursuant to this Agreement is contingent upon Buyer being satisfied, in its sole and absolute discretion, with the results of its due diligence investigation on or before the expiration of the Due Diligence Period.  Buyer shall have the right to terminate this Agreement, for any or no reason, prior to expiration of the Due Diligence Period by providing written notice of such termination to Seller, whereupon Buyer shall receive immediate return of its Deposit (less the Non-Refundable Portion which shall be paid to Seller) and neither Buyer nor Seller shall have any further rights or obligations hereunder except as may be otherwise expressly set forth herein.  If, prior to expiration of the Due Diligence Period, Buyer does not furnish written notice to Seller as required in the immediately preceding sentence, Buyer will be deemed to have elected to proceed with the transaction contemplated hereby and Buyer’s right to terminate this Agreement under this Section 3.2 shall be waived.  

3.3Approval of Title.  Substantially concurrent with the execution of this Agreement, the Title Company shall prepare and promptly deliver to Buyer title commitments with respect to each Individual Property, together with copies of all recorded instruments specified therein (individually a “Title Commitment” and collectively, the “Title Commitments”).  Buyer may at its sole cost and expense order an updated ALTA/NSPS current survey of each Individual Property (individually a “Survey” and collectively, the “New Surveys”).  Buyer hereby acknowledges receipt of the Title Commitments and the existing as built surveys (collectively, the “Existing Surveys”) of the Property.  Not later than fifteen (15) days after the Effective Date, Buyer shall notify Seller and Title Company in writing (“Buyer’s Title Notice”) of Buyer’s approval of all matters contained or referenced in the Title Commitments, the Existing Surveys and/or the New Surveys or of any objections Buyer may have to title exceptions or other matters contained in the Title Commitments, or the Existing Surveys and/or the New Surveys (the “Disapproved Title Matters”).  If Buyer fails to timely deliver Buyer’s Title Notice either approving of the condition of title or identifying certain Disapproved Title Matters, Buyer shall be deemed to have approved of the condition of title to the Real Property as disclosed by the Title Commitments.  If Buyer timely delivers Buyer’s Title Notice objecting to certain Disapproved Title Matters, Seller shall have five (5) business days to deliver a written response as to whether Seller will cure and/or remove some or all of the Disapproved Title Matters (“Seller’s Title Response”). If Seller fails to timely deliver Seller’s Title Response, it will be conclusively presumed that Seller elects to cure and/or remove all Disapproved Title Matters. Buyer shall have five (5) business days after delivery of Seller’s Title Response, if Seller delivers a Seller’s Title Response, to provide written notice to Seller electing to either (1) accept Seller’s Title Response; or (2) terminate this Agreement and receive a full return of the Deposit (less the Non-Refundable Portion which shall be paid to Seller, unless Buyer’s termination relates to Seller’s unwillingness to cure a Mandatory Cure Item), after which the parties shall have no further obligations to each other (except for those obligations hereunder which survive termination) (“Buyer’s Title Response”).  If Buyer fails to deliver Buyer’s Title Response, Buyer 

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will be deemed to have accepted Seller’s Title Response.  From and after the date that Buyer delivers Buyer’s Title Notice, upon the issuance of any amendment or supplement to any Title Commitment which adds additional exceptions to the Title Commitment and Buyer’s receipt of any New Survey, the foregoing right of review and approval shall also apply to said amendment, supplement or New Survey, provided, however, that Buyer’s period of review and approval or disapproval of any such additional exceptions (and consequently, Buyer’s waiver of objection or election to terminate, as applicable) shall be limited to the date that is five (5) business days following receipt of notice of such additional exceptions or New Survey and all underlying documents pertaining thereto (provided further that said additional review period shall be inapplicable to any exceptions or matters which are shown on the Existing Survey or otherwise noted by Title Company based upon Title Company’s review of any New Survey received by Buyer prior to Buyer’s delivery of Buyer’s Title Notice).  All title and survey matters that are either affirmatively approved by Buyer or deemed approved by Buyer in accordance with this Section 3.3, together with the Assumable Loans, shall be collectively referred to in this Agreement as the “Permitted Exceptions”.  Notwithstanding anything to the contrary set forth in this Agreement, Seller agrees, at or prior to Closing, (i) to cause the Title Company to delete from each Title Policy any exception for real estate taxes and assessments due and payable for any period prior to Closing, (ii) except for the Assumable Loans, remove any lien in a liquidated amount created by the acts or omissions of Seller against all or any part of the Real Property including, without limitation, any mortgage (other than payment of the Defeasance/Prepayment Costs, which shall be paid by Buyer), mechanics’, or similar lien or encumbrance that can be satisfied and discharged with the payment of a specified amount of money, (iii) to cause the Title Company to delete from each Title Policy the standard preprinted exceptions that are typically omitted from an owner’s title policy where the Real Property is located, (iv) remove any items filed by Seller after the effective date of a Title Commitment, except to the extent approved by Buyer in writing, and (v) either (I) convey to Buyer fee simple title that is insurable by the Title Company to that certain real property identified as “Except Parcel IV” as shown on the Existing Survey for the Hartshire Property (“Except Parcel IV”), together with all improvements thereon and all appurtenances, streets, alleys, easements, rights-of-way in or to all streets or other interests in, on, across, in front of, abutting, or adjoining such real property, (II) provide written confirmation from the Town of Bargersville that the Town of Bargersville owns fee simple title to Except Parcel IV and publicly maintains Hartshire East Drive as shown on the Existing Survey for the Hartshire Property, or (III) provide other evidence reasonably satisfactory to Buyer confirming that Buyer shall have dedicated access to the Hartshire Property via Hartshire East Drive (items (i) through (v) being collectively referred to herein as the “Mandatory Cure Items”).  In no event shall any Mandatory Cure Item be considered a Permitted Exception for the purposes set forth in this Agreement.  Except with respect to any amendment or supplement to any Title Commitment which adds additional exceptions to the Title Commitment as set forth above, in no event shall the timeframes for notification and response under this Section 3.3 extend beyond the Due Diligence Period, it being agreed that Buyer shall either be satisfied with the Title Commitments, Existing Surveys and/or New Surveys, or it will terminate this Agreement.

ARTICLE 4
PRORATIONS, CLOSING COSTS, AND DEPOSITS

4.1Proration of Taxes.  All general and special real estate taxes and assessments imposed by any governmental authority against the Property (herein called the “Taxes”), for the 

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year in which Closing occurs shall be prorated as of the Closing Date on an accrual basis between Seller and Buyer as of the Closing Date with Seller responsible for the payment of all Taxes accruing before the Closing Date and Buyer responsible for the payment of all Taxes accruing on and after the Closing Date, with such proration being based upon the most recent tax bill; provided, however, that if the most recent tax bill received by Seller before the Closing Date is not the actual current tax bill, then Seller and Buyer shall prorate the taxes as of the Closing Date by applying the tax rate for the period covered by the most current available tax bill to the latest assessed valuation.  

4.2Assumable Loans.  (a) Interest on the Assumable Loans shall be prorated as of the Assumption Closing Date on an accrual basis between Seller and Buyer as of the Closing Date with Seller responsible for the payment of all such interest and other payments attributable to Seller's period of ownership of the Property and Buyer responsible for the payment of all interest and other payments attributable to Buyer's period of ownership of the Property. 

(b)Seller shall receive a credit in the amount of all funds held in escrow by the Lender under the Assumable Loans, including, without limitation, for the payment of capital improvements, taxes or insurance premiums for the Property (collectively, the “Loan Reserves”), and at the Assumption Closing Seller shall transfer and assign to Buyer (which transfer and assignment must be acknowledged by Lender) all of Seller's right, title and interest in and to such Loan Reserves.

4.3Proration of Rents.  All rents, payments for taxes, payments for insurance, payments for common area maintenance charges, payments for operating expenses and other payments on account of financial obligations of Tenants (herein called the “Tenant Financial Obligations”) which have actually been received by Seller as of the Closing Date shall be prorated as of the Closing Date.  At Closing, Buyer will receive a credit against the Purchase Price in the amount of that portion of any prepaid Tenant Financial Obligations paid to Seller under the Leases which are allocable to periods from and after the Closing Date.  No proration shall be made for delinquent Tenant Financial Obligations existing as of the Closing Date; and all Tenant Financial Obligations collected by Buyer from and after Closing from Tenants who were delinquent in the payment of Tenant Financial Obligations as of Closing shall be applied first to current Tenant Financial Obligations then due and payable, then to post-closing arrearages, then to Tenant Financial Obligations for the month in which the Closing occurs, and then to pre-closing arrearages, regardless of whether such payments are identified by tenant for a specific purpose.  Buyer shall promptly refund to Seller any past due Tenant Financial Obligations collected by Buyer and allocable to periods prior to the Closing Date as provided above.  Seller shall promptly remit to Buyer any Tenant Financial Obligations received by Seller for any period from and after the Closing Date.  Seller shall have no right after Closing to attempt to collect any delinquent Tenant Financial Obligations owing to Seller unless any such delinquent tenant has unconditionally vacated its leased premises.  

4.4Deposits.  All unapplied security deposits collected by Seller from any of the tenants (with interest thereon as required by law or any of the leases) shall be credited to Buyer at the Closing.  

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4.5Utilities.  Utility accounts shall be transferred to Buyer as of the Closing, and all charges for utilities relative to the Property for the period ending 11:59 p.m. (EST) on the day prior to the Closing Date shall be the responsibility of Seller and shall be paid by Seller at Closing to the extent feasible (or promptly thereafter following the availability of billings with respect thereto). Buyer shall credit to the account of Seller all refundable cash or other deposits posted with utility companies serving the Property or, at Buyer’s option, Seller shall be entitled to receive and retain such refundable cash and deposits

4.6Property Contracts.  Seller shall be responsible for payment of all Property Contracts to 11:59 p.m. (EST) on the day prior to the Closing Date.  Buyer shall be responsible for such services thereafter for any such contracts which it elects to assume or is required to assume.  The current property management agreements shall be terminated by Seller at Closing.

4.7Insurance.  Seller shall cause its policies of insurance for the Property to be terminated effective immediately as of the Closing Date and Buyer shall be responsible for obtaining its own insurance. There shall be no proration of Seller's insurance premiums for the Property.

4.8Other.  Any other items which are customarily prorated in connection with the purchase and sale of properties similar to the Property shall be prorated as of the Closing Date as of the Closing Date on an accrual basis between Seller and Buyer as of the Closing Date with Seller responsible for the payment of all such items accruing before the Closing Date and Buyer responsible for the payment of all such items accruing on and after the Closing Date.  All door fees, up-front fees, bonus payments and similar fees received by Seller or any IN/OH Property Owner shall be prorated as of the Closing Date.

4.9Closing Costs. 

(a)Seller shall pay (i) the cost of recording the Deeds and any corrective title instruments; (ii) the costs of the Assumption Consultant; and (iii) one-half the cost of the escrow fees charged by Escrow Holder, if any.

(b)Buyer shall pay (i) the costs of obtaining any extended coverage for the Title Policies, the additional cost of the premiums for any additional or different title insurance coverage requested by Buyer, including the deletion of exceptions (unless in connection with a Mandatory Cure Item (in which Seller shall be responsible for such cost)), and the issuance of any requested title endorsements (unless in connection with a Mandatory Cure Item (in which Seller shall be responsible for such cost)); (ii) the cost of the Surveys; (iii) the Defeasance/Prepayment Costs; (iv) the Assumption Costs; (v) any mortgage taxes; and (vi) one-half the cost of the escrow fees charged by Escrow Holder, if any.  

(c)Any state, county or local transfer or documentary stamp taxes in connection with the sale (other than mortgage taxes in connection with Buyer’s financing (if any) (“Transfer Taxes”), any search and examination fees charged in connection with the preparation of the Title Commitments (“Search and Exam Fees”) and the premiums for the Title Policies (“Owner’s Policy Premium”) shall be allocated in accordance with Schedule 4.9(c) attached hereto.

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(d)Seller and Buyer shall each be responsible for its own attorneys’ costs and fees incurred in connection with the preparation and negotiation of this Agreement.

(e)Any other expenses or closing costs in connection with this transaction shall be allocated in accordance with local real estate closing customs with respect to each Individual Property.

4.10Closing Statement.  No later than five (5) business days prior to the Closing Date, Escrow Holder shall prepare for approval by Buyer and Seller a closing statement (“Closing Statement”) on Escrow Holder’s standard form indicating, among other things, Escrow Holder’s estimate of all closing costs and prorations made pursuant to this Agreement.  Buyer and Seller shall provide Escrow Holder the amounts of all prorations.

4.11LIQUIDATED DAMAGES.  IN THE EVENT THAT BUYER BREACHES ITS OBLIGATIONS UNDER THIS AGREEMENT, THE DAMAGES THAT SELLER WILL INCUR BY REASON THEREOF ARE AND WILL BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTABLISH.  BUYER AND SELLER, IN A REASONABLE EFFORT TO ASCERTAIN WHAT SELLER’S DAMAGES WOULD BE IN THE EVENT OF SUCH A DEFAULT BY BUYER, HAVE AGREED THAT SUCH DAMAGES SHALL BE IN AN AMOUNT EQUAL TO THE AMOUNT OF THE DEPOSIT AND THAT SUCH DEPOSIT SHALL BE DELIVERED TO SELLER UPON SUCH DEFAULT BY BUYER AND RETAINED BY SELLER AS LIQUIDATED DAMAGES, WHICH DAMAGES SHALL BE SELLER’S SOLE AND EXCLUSIVE REMEDY AT LAW OR IN EQUITY IN THE EVENT OF AND FOR SUCH DEFAULT BY BUYER.  WITHOUT LIMITING THE FOREGOING PROVISIONS OF THIS PARAGRAPH, SELLER WAIVES ANY AND ALL RIGHTS WHICH SELLER OTHERWISE WOULD HAVE HAD TO SPECIFICALLY ENFORCE THIS AGREEMENT.  NOTWITHSTANDING THE FOREGOING, SELLER AND BUYER ACKNOWLEDGE AND AGREE THAT THIS SECTION SHALL NOT LIMIT SELLER’S RIGHT TO RECOVER FROM BUYER, IN ADDITION TO THE FOREGOING LIQUIDATED DAMAGES, ANY AMOUNTS TO WHICH IT MAY BE ENTITLED PURSUANT TO AN INDEMNITY OR ATTORNEYS’ FEE PROVISION CONTAINED IN THIS AGREEMENT.  SELLER AND BUYER ACKNOWLEDGE AND AGREE THAT THEY HAVE READ AND UNDERSTAND THE PROVISIONS OF THIS PARAGRAPH AND BY THEIR INITIALS AGREE TO BE BOUND BY ITS TERMS.

	

	
/s/JS/s/MS
Buyer’s InitialsSeller’s Initials

	
4.12
	
Breach by Seller.  If Seller defaults in its obligation to sell and convey the GA/LA/NC/SC Property and/or Limited Liability Company Interests to Buyer pursuant to this Agreement, Buyer’s sole remedy shall be to elect one of the following:  (a) to terminate this Agreement, in which event Buyer shall be entitled to the return of the Deposit (including the Non-Refundable Portion) and Seller shall reimburse Buyer’s Out of Pocket Costs within three (3) business days or (b) to enforce specific performance, provided that any suit for specific performance must be filed and served within ninety (90) days of Seller’s default and Buyer waives the right to bring suit at any later date.  Notwithstanding the foregoing, in the event Buyer is unable to seek specific performance because Seller has willfully breached this Agreement and 

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sold all or any portion of the Property, directly or indirectly, to a third party purchaser, then, in addition to terminating this Agreement and getting its Deposit (including the Non-Refundable Portion) returned, Buyer may pursue any and all remedies against Seller at law or in equity, including damages.  Buyer shall give Escrow Holder and Seller written notice of Buyer’s election of such remedy.  The term “Out of Pocket Costs” shall mean actual and verifiable costs and expenses incurred by Buyer in connection with this transaction, not to exceed Five Hundred Thousand Dollars ($500,000.00); provided, however, from and after the Defeasance Closing, such amount shall not exceed Three Hundred Thousand Dollars ($300,000.00). 

	
4.13
	
General.  To the extent that the exact amount of items of income and expense (such as utility expenses) are not available on the Closing Date, such items shall be apportioned on an estimated basis, and Seller and Buyer shall make any final adjustments on such items within one hundred twenty (120) days after the Closing Date; provided, however, that Taxes shall be apportioned based on one hundred three percent (103%) of the most recent ascertainable Taxes and shall be re-prorated within thirty (30) days following Buyer’s receipt of the final tax bill for the year in which the Closing occurs.  Notwithstanding the foregoing, if Buyer fails to deliver to Seller a final tax bill for any Individual Property within thirty (30) days following the issuance of a final bill by the relevant taxing authority (it being understood that Seller shall promptly deliver to Buyer any final bills received by Seller), Buyer thereafter fully and forever waives its right to re-prorate the Taxes for such Individual Property.  To the extent that any items of income and expense are not known to either Buyer or Seller at Closing and are not properly apportioned at Closing, such items shall be apportioned between Buyer and Seller promptly upon discovery thereof, but in no event later than one hundred twenty (120) days after the Closing Date.  The terms of this Section 4.13 shall survive the Closing.

ARTICLE 5
AS-IS PURCHASE; RELEASE; REPRESENTATIONS AND WARRANTIES

5.1Disclaimer; Live Oak Repairs.  

(a)Except for the specific representations and warranties of Seller set forth in Section 5.9 below or any of the documents to be delivered by Seller to Buyer pursuant to Section 2.5(b) above, Buyer acknowledges and agrees that it will have the opportunity to thoroughly inspect, investigate and exercise due diligence, and the opportunity to fully and independently become familiar with, and fully satisfy itself regarding, any and all matters relating to the Property.  Except for the specific representations and warranties of Seller set forth in Section 5.9 below or any of the documents to be delivered by Seller to Buyer pursuant to Section 2.5(b) above, Seller has not made, does not make and specifically negates and disclaims any representations, warranties, promises, covenants, agreements or guaranties of any kind or character whatsoever, whether express or implied, oral or written, past, present or future, of, as to, concerning or with respect to the Property or its condition, including, without limitation, (i) the value of the Property; (ii) the income to be derived from the Property; (iii) the suitability of the Property for any and all activities and uses which Buyer may conduct thereon, including, without limitation, the possibilities for future development of the Property; (iv) the habitability, merchantability, marketability, profitability or fitness for a particular purpose of the Property; (v) the manner, quality, state of repair or lack of repair of the Property; (vi) the nature, quality or condition of the Property, including, without limitation, the water, soil and geology; (vii) the 

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compliance of or by the Property or its operation with any laws, rules, ordinances or regulations of any applicable governmental authority or body including, without limitation, Title III of the Americans With Disabilities Act of 1990 as amended; (viii) [intentionally omitted]; (ix) [intentionally omitted]; (x) the manner or quality of the construction or materials incorporated into the Property; (xi) compliance with any environmental protection, pollution or land use laws, rules, regulations, orders or requirements including, without limitation, the Federal Water Pollution Control Act, the Federal Resource Conservation and Recovery Act, the U.S. Environmental Protection Agency Regulations at 40 C.F.R., Part 261, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Resource Conservation and Recovery Act of 1976, as amended, the Clean Water Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act, the Toxic Substance Control Act, and any and all laws, ordinances, statutes, codes, rules, regulations, agreements, judgments, orders, and decrees of the United States, the states where the Property is located or any other political subdivisions in which the Property is located, and any other political subdivision, agency or instrumentality exercising jurisdiction over the owner of the Property, the Property or the use of the Property, relating to pollution, or the emission, discharge, release or threatened release of pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or waste or Hazardous Materials (as defined in Section 5.9(m) below) into, or the presence thereof in, the environment (including, without limitation, ambient air, surface water, ground water or land or soil), as any or all of the same may be amended from time to time, and regulations promulgated under any of the foregoing (collectively, “Environmental Laws”), (xi) [intentionally omitted]; (xii) the presence or absence of Hazardous Materials at, on, under, or adjacent to the Property including, but not limited to, petroleum products, asbestos, lead-based paint, mold or fungi; (xiii) the content, completeness or accuracy of any of the Due Diligence Items; (ix) the conformity of the Improvements to any plans or specifications for the Property, including any plans and specifications that may have been or may be provided to Buyer; (xv) the conformity of the Property to past, current or future applicable zoning or building requirements or the ability or feasibility of the Property to be converted to a condominium scheme; (xvi) deficiency of any undershoring; (xvii) deficiency of any drainage; (xviii) the fact that all or a portion of the Property may be located on or near an earthquake fault line or sinkhole; (xiv) the existence of vested land use, zoning or building entitlements affecting the Property; and (xx) any matters arising from or relating to Seller’s alleged superior knowledge.  Seller is not liable or bound in any manner by any oral or written statements, representations or information pertaining to the Property, or the operation thereof, furnished by any real estate broker, agent, employee, servant or other person.  Buyer further acknowledges and agrees that to the maximum extent permitted by law, the sale of the Property as provided for herein is made on an “AS‐IS” condition and basis as of the Closing Date with all faults, and that, except for Seller’s covenants to maintain the Property in its current condition prior to Closing and make vacant units rent ready, Seller has no obligations to make repairs, replacements or improvements, whether before or after the Close of Escrow.  Buyer represents, warrants and covenants to Seller, which representation, warranty, and covenant will survive the Close of Escrow and not be merged with the Deed, that Buyer will solely rely upon Buyer’s own investigation of the Property and all other matters relating to the Property and Seller’s representation in Section 5.9 below or any of the documents to be delivered by Seller to Buyer pursuant to Section 2.5(b) above, and not on any other information provided or to be provided by Seller or anyone acting on Seller’s behalf.

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(b)Buyer and Seller hereby acknowledge and agree that, prior to the Effective Date, the Live Oak Property was damaged as a result of a casualty, the repairs to which have not yet been completed and the extent of the damage to which Buyer has not yet had an opportunity to fully inspect and investigate.  Accordingly, and notwithstanding anything to the contrary set forth in this Agreement, Buyer may, in its sole and absolute discretion, terminate this Agreement solely with respect to the Live Oak Property by giving written notice of such termination to Seller at any time prior to the expiration of the Due Diligence Period, in which event the Purchase Price shall be reduced by Twenty Six Million Four Hundred Thousand and 00/100 Dollars ($26,400,000.00 and this Agreement shall remain in full force and effect with respect to the remainder of the Property.

(c)Seller hereby agrees to complete all such repairs as set forth on Schedule 5.1(c) (the “Live Oak Repairs”) in a good and workmanlike manner prior to the Assumption Closing.  If Buyer does not exercise its right to terminate this Agreement solely with respect to the Live Oak Property pursuant to Section 5.1(b) above, then at the Defeasance Closing Seller shall escrow with Escrow Holder an amount equal to One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00) (the “Live Oak Escrow Funds”).  If Seller notifies Buyer that the Live Oak Repairs have been completed prior to the Defeasance Closing, Buyer shall within five (5) days inspect the Live Oak Property.  If Buyer agrees that the Live Oak Repairs have been completed in a good and workmanlike manner, no escrow shall be required.  If Buyer does not agree, the Live Oak Inspector (as defined below) shall inspect the Live Oak Property, and in the event the Live Oak Inspector agrees the Live Oak Repairs have been completed in a good and workmanlike manner, no escrow shall be required.  On or before the date that is ten (10) days prior to the Assumption Closing (or earlier pursuant to the preceding sentence), Buyer and Seller shall cause an independent third-party engineer or similar professional licensed in the State of Louisiana and mutually acceptable to Buyer and Seller (the “Live Oak Inspector”) to inspect the Live Oak Repairs (the “Live Oak Repairs Inspection”).  If, as a result of the Live Oak Repairs Inspection, the Live Oak Inspector determines that all of the Live Oak Repairs have been completed in a good and workmanlike manner, then at the Assumption Closing Escrow Holder shall disburse the Live Oak Escrow Funds to Seller.  If, as a result of the Live Oak Repairs Inspection, the Live Oak Inspector determines that the Live Oak Repairs have been completed in a good and workmanlike manner, the Live Oak Escrow Funds shall be released to Seller.  If, as a result of the Live Oak Repairs Inspection, the Live Oak Inspector determines that all, or any portion, of the Live Oak Repairs have not been completed in a good and workmanlike manner, then at the Assumption Closing Escrow Holder shall disburse to Buyer from the Live Oak Escrow Funds an amount equal to the cost (as determined by the Live Oak Inspector) to complete any such Live Oak Repairs that have not yet been completed in a good and workmanlike manner (the “Live Oak Repairs Costs”); provided, however, if the Live Oak Repairs Costs exceed the Live Oak Escrow Funds, Buyer shall receive at the Assumption Closing, in addition to the Live Oak Escrow Funds, a credit against the Purchase Price equal to the amount of such excess.  If the Live Oak Repairs Costs are less than the Live Oak Escrow Funds, then at the Assumption Closing Escrow Holder shall disburse to Seller such remaining portion of the Live Oak Escrow Funds.  The cost of the Live Oak Repairs Inspection and any fees of the Live Oak Inspector shall be divided equally between Buyer and Seller.

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5.2Release and Waiver.  

(a)Except for the specific representations and warranties of Seller set forth in Section 5.9 below or any of the documents to be delivered by Seller to Buyer pursuant to Section 2.5(b) above, Buyer hereby fully and forever releases, acquits and discharges Seller of and from, and hereby fully and forever waives any and all claims, actions, causes of action, suits, proceedings, demands, rights, damages, costs, expenses or other compensation whatsoever, whether known or unknown, direct or indirect, foreseeable or unforeseeable, absolute or contingent, that Buyer now has or may have or which may arise in the future arising out of, directly or indirectly, or in any way connected with the Property or any other matters relating to the Property, including, without limitation:  (A) except to the extent caused by any act or omission of Seller or any agent or representative of Seller after the Closing Date, any condition of environmental contamination or pollution at the Property, however and whenever occurring (including, without limitation, the contamination or pollution of any soils, subsoil media, surface waters or groundwaters at the Property) including, but not limited to, petroleum products, asbestos, lead-based paint, mold or fungi; (B) to the extent not already included in (A) above and except to the extent caused by any act or omission of Seller or any agent or representative of Seller after the Closing Date, the prior, present or future existence, release or discharge, or threatened release, of any Hazardous Materials at the Property, however and whenever occurring; (C) the violation of, or non-compliance with, any applicable law now or hereafter in effect, however or whenever occurring; (D) the condition of the soil at the Property; (E) the condition of Improvements including, without limitation, the structural integrity and seismic compliance of such Improvements; (F) the unintentional inaccuracy, unreliability, or incompleteness of, or any defect or mistake in, any Due Diligence Items; (G) to the extent not already covered by any of the foregoing clauses (A) through (F), above, the use, maintenance, development, construction, conversion of use, ownership or operation of the Property by Seller or any of Seller’s predecessor(s)-in-interest in the Property; (H) any matters arising from or relating to the leases; or (G) any matters based on Seller’s alleged superior knowledge.

(b)Except for any specific representations or warranties of Seller set forth in Section 5.9 below or any of the documents to be delivered by Seller to Buyer pursuant to Section 2.5(b) above, without limiting the scope or generality of the foregoing release and waiver provisions, those provisions shall specifically include and cover (1) any claim for or right to indemnification, contribution or other compensation based on or arising under any Environmental Law now or hereafter in effect, and (2) any claim for or based on trespass, nuisance, waste, negligence, negligence per se, strict liability, ultrahazardous activity, indemnification, contribution of other theory arising under the common law of the states where the Property is located or arising, under any applicable law now or hereafter in effect.

5.3Waiver of General Release Defenses.  Buyer hereby acknowledges that a general release may not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.  Nonetheless, Buyer hereby waives the provisions of any statute, principle of common law or case law which would limit the scope of the foregoing waiver and release, in connection with matters which are the subject of the foregoing waiver and release.

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5.4Natural Hazards.  BUYER ACKNOWLEDGES THAT CERTAIN HAZARDS SUCH AS SINKHOLES, RADON AND OTHER NATURALLY OCCURRING HAZARDS MAY AFFECT THE PROPERTY.  BUYER ACKNOWLEDGES AND AGREES THAT BUYER WILL HAVE THE OPPORTUNITY TO INDEPENDENTLY EVALUATE AND INVESTIGATE WHETHER ANY OR ALL OF SUCH NATURAL HAZARDS AFFECT THE PROPERTY AND SELLER SHALL HAVE NO LIABILITIES OR OBLIGATIONS WITH RESPECT THERETO.  WITHOUT LIMITING THE FOREGOING, BUYER ACKNOWLEDGES AND AGREES THAT BUYER KNOWINGLY AND INTENTIONALLY WAIVES ANY DISCLOSURES, OBLIGATIONS OR REQUIREMENTS OF SELLER WITH RESPECT TO NATURAL HAZARDS.  BUYER REPRESENTS THAT BUYER HAS EXPERIENCE ACQUIRING AND CONDUCTING DUE DILIGENCE, AND THAT THIS WAIVER HAS BEEN NEGOTIATED AND IS AN ESSENTIAL ASPECT OF THE BARGAIN BETWEEN THE PARTIES.

5.5Lead Warning Statement.  EVERY BUYER OF ANY INTEREST IN RESIDENTIAL REAL PROPERTY ON WHICH A RESIDENTIAL DWELLING WAS BUILT PRIOR TO 1978 IS NOTIFIED THAT SUCH PROPERTY MAY PRESENT EXPOSURE TO LEAD FROM LEAD-BASED PAINT THAT MAY PLACE YOUNG CHILDREN AT RISK OF DEVELOPING LEAD POISONING.  LEAD POISONING IN YOUNG CHILDREN MAY PRODUCE PERMANENT NEUROLOGICAL DAMAGE, INCLUDING LEARNING DISABILITIES, REDUCED INTELLIGENCE QUOTIENT, BEHAVIORAL PROBLEMS, AND IMPAIRED MEMORY.  LEAD POISONING ALSO POSES A PARTICULAR RISK TO PREGNANT WOMEN.  THE SELLER OF ANY INTEREST IN RESIDENTIAL REAL PROPERTY IS REQUIRED TO PROVIDE THE BUYER WITH ANY INFORMATION ON LEAD-BASED PAINT HAZARDS FROM RISK ASSESSMENTS OR INSPECTIONS IN THE SELLER’S POSSESSION AND NOTIFY THE BUYER OF ANY KNOWN LEAD-BASED PAINT HAZARDS.  A RISK ASSESSMENT OR INSPECTION FOR POSSIBLE LEAD-BASED PAINT HAZARDS IS RECOMMENDED PRIOR TO PURCHASE.

By its execution of this Agreement, Buyer acknowledges that (a) it has read and understands the foregoing Lead Warning Statement, (b) it has reviewed, or during the Due Diligence Period will review, the Due Diligence Items concerning lead-based paint or lead-based paint hazards located on the Property, and (c) Seller has provided, or Buyer has independently obtained, a lead hazard information pamphlet in the form prescribed by the Environmental Protection Agency under Section 406 of the Toxic Substances Control Act.  Buyer shall conduct such studies and tests for lead-based paint during the Due Diligence Period as Buyer deems appropriate.  By its execution of this Agreement, Seller acknowledges that, to Seller’s knowledge, the statements contained herein and the information provided, or to be provided, to Buyer pursuant to the terms of this Agreement concerning lead-based paint and lead-based paint hazards are accurate.

5.6Radon.  Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time.  Additional information regarding radon and radon testing may be obtained from county public health units.

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5.7Survival.  Buyer’s acknowledgements, consents, agreements and releases set forth in this Article 5 shall survive the Closing or the termination of this Agreement.

5.8Representations and Warranties of Buyer.  Buyer hereby represents and warrants to Seller as follows:

(a)Buyer is a limited partnership duly organized, validly existing, and in good standing under the laws of Delaware, and as of the Closing Date, it or its designee will be authorized to transact business in the states where the Property is located, and has all requisite power and authority to carry out the transactions contemplated by this Agreement and has obtained all necessary approvals to authorize the transaction and consummate the transfer of the Property as herein contemplated.

(b)This Agreement has been duly authorized and approved by Buyer, has been duly and validly executed and delivered by Buyer and is a valid and legally binding agreement of Buyer, enforceable against Buyer in accordance with its terms, except to the extent that such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other laws relative to or affecting the rights and remedies of creditors generally and by general principles of equity (regardless of whether in equity or at law).

(c)The execution, delivery and performance of this Agreement by Buyer will not breach any statute or regulation of any governmental authority, and will not conflict with or result in a breach of or default under any of the terms, conditions or provisions of any order, writ, injunction, decree, agreement or instrument to which Buyer is a party.

(d)Buyer has the requisite financial wherewithal in order to consummate the transaction contemplated under this Agreement and to pay at Closing the Purchase Price.

Notwithstanding any other provisions of this Agreement and in addition to any of Seller’s remedies hereunder, the representations and warranties and the indemnity included in this Section 5.8 shall survive the Closing and the execution and delivery of the Deed for nine (9) months (the “Survival Period”).

5.9Representations and Warranties of Seller.  The matters set forth in this Section 5.9 constitute representations and warranties by Seller which are now and (subject to matters contained in any notice given pursuant to the next succeeding sentence) shall be true and correct at Closing.  If Seller, after the execution of this Agreement, learns of, or has a reason to believe that any of the representations and warranties contained in this Section 5.9 may cease to be true, Seller shall give prompt written notice to Buyer (which written notice shall include copies of the instrument, correspondence, or document, if any, upon which Seller's written notice is based).  Upon receiving such written notice, Buyer shall have the right to accept such revised representation and warranty and proceed with the Closing or to terminate this Agreement in which event Buyer shall be entitled to the return of the Deposit (including the Non-Refundable Portion) and, if such representation was intentionally or materially misleading when made, Seller shall reimburse Buyer’s Out of Pocket Costs within three (3) business days and the parties shall have no further obligations hereunder other than those which expressly survive the termination of this Agreement.  As used in this Section 5.9, the phrase “to Seller’s knowledge” shall mean 

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the actual, current knowledge of J. David Kelsey and Matthew A. Sharp, without any duty of inquiry.  There shall be no personal liability on the part of any of such individuals.  Each Seller, with respect to itself, its respective Individual Property and/or any IN/OH Property Owner, as applicable, represents and warrants to Buyer, as follows:

(a)Seller is a limited liability company duly organized, validly existing, and in good standing under the laws of Delaware, and is authorized to transact business in the states where its Individual Property is located, and has all requisite power and authority to carry out the transactions contemplated by this Agreement and has obtained all necessary approvals to authorize the transaction and consummate the transfer of the Property as herein contemplated.

(b)Entity Seller has provided Buyer with true, correct and complete copies of the IN/OH Property Owner’s organizational documents (the “IN/OH Property Owner’s Organizational Documents”), as more particularly listed on Schedule 5.9(b), prior to the execution of this Agreement.  Except as described on Schedule 5.9(b), the IN/OH Property Owner’s Organizational Documents have not been modified, amended or supplemented and the same are in full force and effect.

(c)IN/OH Property Owner is a limited liability company duly organized, validly existing, and in good standing under the laws of Delaware, and is authorized to transact business in the state where its Individual Property is located. 

(d)This Agreement has been duly authorized and approved by Seller, has been duly and validly executed and delivered by Seller and is a valid and legally binding agreement of Seller, enforceable against Seller in accordance with its terms, except to the extent that such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other laws relative to or affecting the rights and remedies of creditors generally and by general principles of equity (regardless of whether in equity or at law).

(e)The execution, delivery and performance of this Agreement by Buyer will not breach any statute or regulation of any governmental authority, and will not conflict with or result in a breach of or default under any of the terms, conditions or provisions of any order, writ, injunction, decree, agreement or instrument to which Seller is a party.  None of the execution, delivery or performance of this Agreement by Seller does or will, with or without the giving of notice, lapse of time or both, violate, conflict with, constitute a default, result in a loss of rights, acceleration of payments due or creation of any lien upon the Limited Liability Company Interests or the Property.

(f)(i) There is no pending condemnation or similar proceeding affecting any part of the Property; and (ii) Seller has not received any written notice of, nor does Seller have knowledge of, any threatened condemnation or similar proceeding affecting any part of the Property.

(g)Seller has not received written notice from any governmental authority that the Property is not in compliance with all applicable laws, except for such failures to comply, if any, which have been remedied prior to the Effective Date.  To the best of Seller’s knowledge, the Property is in material compliance with all applicable laws.

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(h)Other than as set forth on Schedule 5.9(h) hereof, (i) there is no pending litigation or administrative proceedings affecting the Seller or Property; and (ii) Seller has not received any written notice of, nor does Seller have knowledge of, any pending litigation or administrative proceedings affecting the Seller or Property. 

(i)Seller has not (i) made a general assignment for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by Seller's creditors, (iii) suffered the appointment of a receiver to take possession of all, or substantially all, of Seller's assets, (iv) suffered the attachment or other judicial seizure of all, or substantially all, of Seller's assets, (v) admitted in writing its inability to pay its debts as they come due, or (vi) made an offer of settlement, extension or composition to its creditors generally.

(j)Seller is not a “foreign person” as defined in Section 1445 of the Internal Revenue Code of 1986, as amended (the “Code”) and any related regulations.

(k)The rent roll for the Property attached hereto as Schedule 5.9(k)-1 is true, correct and complete in all material respects as of the date set forth therein.  Seller has provided or made available to Buyer with true, correct and complete copies of each of the tenant leases listed on the rent roll including all amendments and modifications thereto (collectively, the “Leases”), prior to the execution of this Agreement.  Other than as set forth on Schedule 5.9(k)-2 hereof, (i) no tenant is in arrears more than thirty (30) days with respect to any payment obligations under its Lease; and (ii) neither Seller nor, to Seller’s knowledge, the applicable tenant is otherwise in default in any material respect of the terms and conditions under the Leases.  Other than the Leases, there are no contracts, written or otherwise, with any individual, partnership, corporation, limited liability company, trust, estate, or unincorporated organization, or other entity, or a government or agency or political subdivision thereof (each, a “Person”) for the occupancy of all or any portion of the Real Property.

(l)The list of contracts or servicing agreements affecting the Property (the “Property Contracts”) attached hereto as Schedule 5.9(l) is a true, correct and complete list of Property Contracts to which Seller is a party or which otherwise affect the Property.  Seller has provided or made available to Buyer with true, correct and complete copies of each of the Property Contracts prior to the execution of this Agreement.  Neither Seller nor, to Seller’s knowledge, the applicable vendor is in default in any material respect of the terms and conditions under the Property Contracts.  Other than the Service Contracts, there are no contracts, written or otherwise, with any Person, firm, labor union or entity for maintenance, labor, materials, supplies or services at the Property.  There are, and will be as of Closing Date, no past due amounts under the Property Contracts that Buyer either elects, or is required, to assume at Closing.

(m)Seller is currently in compliance with, and shall at all times during the term of this Agreement (including any extension thereof) remain in compliance with, the regulations of the Office of Foreign Assets Control ("OFAC") of the Department of the Treasury (including those named on OFAC's Specially Designated Nationals and Blocked Persons List) and any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action relating thereto.

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(k)There are no pending special assessments affecting the Property and to Seller’s knowledge none are threatened against Seller or the Property.

(l)There are no options or rights in any party, other than Buyer, to purchase, or acquire any fee ownership interest in the Property.

(m) The Seller has received no notices of violation of any Environmental Law and to Seller’s knowledge no Hazardous Material is located on the Property.  Seller has heretofore delivered to Buyer all environmental audit reports covering the Property in Seller’s possession or control.  Seller makes no representation or warranties as to any previous or present generation, storage, disposal or existence of any oil, petroleum products, or other hazardous materials, as defined under applicable Environmental Laws (collectively, “Hazardous Materials”) in, on, under or about the Property.  

 

(n)Based on Seller’s title policies, the Property is separately assessed for real property tax assessment purposes and is not combined with any other real property for such tax assessment purposes.  The Property is not subject to or affected by, and Seller has not received notice of any contemplated or actual, re-assessments of the Property or any part thereof for general real estate tax purposes or special assessment purposes, nor has Seller filed, or contracted with any party to investigate or file, any tax assessment appeal.  All property tax returns required to be filed by Seller or the IN/OH Property Owner relating to the Property under any Law have been, or will be, as the case may be, truthfully, correctly and time filed.  There are no pending tax appeals affecting the Property. 

 

(o)Other than the Condominium located at the Kensington Property, no portion of the Property is subject to a condominium regime.  The Kensington Property Owner owns all Units of the Condominium. 

 

(p)The Seller has no employees.  Seller has not, and will not, represent to the employees of its property manager that Buyer or its independent manager will hire Seller’s employees on or after the Closing Date. 

 

(q)(i) Seller is not an “employee benefit plan”, as defined in Section 3(3) of ERISA, subject to Title I of ERISA, (ii) Seller is not a “governmental plan” within the meaning of Section 3(32) of ERISA, (iii) transactions by or with Seller are not and will not be subject to any state statute, regulation or ruling regulating investments of, or fiduciary obligations with respect to, governmental plans, and (iv) none of the assets of Seller constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101 , as modified by Section 3(42) of ERISA.

 

(r)Seller is not undertaking any capital expenditures work at the Property other than in the ordinary course of business, consistent with past practice.

 

(s)The consummation of the transaction contemplated by this Agreement will not render Seller insolvent or constitute a fraudulent conveyance or fraudulent transfer under any applicable law.  Seller has not made any general assignment for the benefit of Seller’s 

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creditors.  No proceeding seeking (i) relief for Seller under any bankruptcy or insolvency law, (ii) the rearrangement or readjustment of Seller’s debt, (iii) the appointment of a receiver, custodian, liquidator or trustee to take possession of substantially all of the assets of Seller, or (iv) the liquidation of Seller has been commenced, is planned by Seller or has been threatened by any other Person.

 

(t)Seller’s insurance policies (including, without limitation, Seller’s casualty insurance and lost rent insurance) covering the Property, are in full force and effect, all premiums due with respect thereto have been paid, and no notice of cancellation has been received with respect thereto.

 

(u)The Limited Liability Company Interests represent all of the outstanding limited liability company interests of the IN/OH Property Owner.  The Limited Liability Company Interests have been duly authorized and validly issued in accordance with the IN/OH Property Owner’s Organizational Documents and applicable laws.  As to each IN/OH Property Owner, (i) there are no outstanding securities convertible into or exchangeable for limited liability company interests, (ii) no outstanding subscription rights, options, warrants or other agreements providing for the sale, issuance or purchase (contingent or otherwise) of limited liability company interests, (iii) no calls, commitments or claims of any character relating to limited liability company interests, and (iv) no other agreements which could obligate the IN/OH Property Owner to transfer any ownership interest of itself, or to issue or sell additional limited liability company interests.

 

(v) Entity Seller is the legal and beneficial owner of the Limited Liability Company Interests, and, at Closing, title to such Limited Liability Company Interest shall be conveyed to Buyer or its designee(s) free and clear of any liens. 

 

(w)Each of the Assumable Loans and its respective Loan Documents are valid and binding agreements of the Hartshire Property Owner, the Brunswick Seller and the Creekside Seller, as applicable, and, to the Seller’s knowledge, valid and binding agreements of the other party or parties thereto, and each of the Assumable Loans and its respective Loan Documents are in full force and effect.  None of the Hartshire Property Owner, the Brunswick Seller and the Creekside Seller are in default under the terms of its respective Assumable Loan, and, to the Seller’s knowledge, no other Person is in default under any of the Loan Documents.  True, correct and complete copies of all of the Loan Documents have been provided to Buyer prior to the execution of this Agreement.  Except as listed on Exhibits B-1 through B-3 attached hereto, the Loan Documents have not been amended or modified in any respect, other than miscellaneous assignment documents pursuant to which each of the loans has been sold into a securitization trust.

 

(x)Entity Seller has made available to Buyer (1) true, correct and complete copies (in all material respects) of the annual financial statements for each of the Property Owners for the year ended December 31, 2016 (each a “Financial Statement”), and (2) true, correct and complete copies (in all material respects) of the balance sheet and statement of income for each of the Property Owners for the quarter ended June 30, 2017.  Each Financial Statement is fairly represented in conformity with generally accepted accounting principles, and 

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includes all disclosures necessary for such presentation and disclosures required to be included therein by the laws and regulations to which the applicable Property Owner is subject. 

 

(y)Entity Seller has filed within the time and in the manner prescribed by law any required return required to be filed with any taxing authority, including any schedule or attachment thereto or any amendment thereof (the “Tax Returns”).  All Tax Returns filed by the IN/OH Property Owner are true, correct and complete in all material respects.  The IN/OH Property Owner has paid in full all taxes of whatever kind or nature for the periods covered by such Tax Returns.  There are no tax liens, whether imposed by the United States, any state, local, or other taxing authority, outstanding against the IN/OH Property Owner, or any of its respective assets.

 

(z)To Seller’s knowledge, the representations set forth in the Auditor Representation Letter are true and correct.

 

(aa) The IN/OH Property Owner has at all times during its existence been properly treated as a “disregarded entity” and not as an association taxable as a corporation for federal income tax purposes.

 

(bb)To Seller’s knowledge, there are no unpaid charges, debts, liabilities, claims or obligations arising from the construction, occupancy, ownership, use or operation of the Property which could give rise to any mechanic's or materialmen's or other statutory lien against the Property, or any part thereof, for which Buyer or its designee(s) will be responsible after the Closing; provided that if any such charge, debt, liability, claim or obligation arises prior to Closing, the same shall not be a default by Seller hereunder so long as the same is paid or discharged by Seller at or prior to Closing.  

 

(cc)Each Property Owner owns or will own the Personal Property related to its Individual Property free and clear of all liens and encumbrances.  

 

(dd)From the date of each Property Owner’s formation to the Closing Date, (i) each such Property Owner has maintained its status as a bankruptcy remote single purpose entity; and (ii) each Property Owner has conducted its operations in material compliance with the single-purpose entity covenants set forth in its organizational documents and any loan documents to which it is or, has at any time been, a party.  Each Property Owner has at all times during its existence been a single-member Delaware limited liability company.

Notwithstanding any other provisions of this Agreement and in addition to any of Buyer’s other remedies hereunder, the representations and warranties and the indemnity included in this Section 5.9 shall survive the Closing and the execution and delivery of the Deed for the Survival Period. Seller’s liability hereunder shall be subject to the terms of Section 6.24 hereof.

ARTICLE 6
MISCELLANEOUS

6.1Covenants of Seller Pending Closing.  

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(a)During the term of this Agreement, Seller will continue to manage, operate, lease and maintain the Property in substantially the same manner it has before the execution of this Agreement and shall keep Seller’s insurance policies covering the Property in full force and effect at all times from the Effective Date through the Closing Date.  Any rental unit that becomes vacant more than five (5) days prior to the Closing Date shall be prepared and made in Rent Ready Condition (as defined below).  Failure to comply with the covenant in the foregoing sentence shall not be a default under this Agreement, provided that, subject to the penultimate sentence of this Section 6.1(a), Buyer shall receive a credit equal to One Thousand Five Hundred and 00/100 Dollars ($1,500.00) for each unit that becomes vacant more than five (5) days prior to the Closing but is not prepared and made in Rent Ready Condition as of the Closing Date.  In addition to the foregoing, subject to the penultimate sentence of this Section 6.1(a), Buyer shall receive a credit equal to Seven Hundred Fifty and 00/100 Dollars ($750.00) for each unit that becomes vacant within five (5) days prior to the Closing unless the same is made in Rent Ready Condition.  Buyer shall have access to each vacant unit at the Property two (2) days prior to the Closing to confirm that such units are in Rent Ready Condition as required herein.   As used herein, the term “Rent Ready Condition” shall mean that the applicable unit has been cleaned, all drywall within such unit has been patched, painted and is free of holes or other damage, all carpet and other flooring within such unit is free of stains and without visible wear and tear, all appliances are present in such unit and in good working order, all HVAC, plumbing and electric servicing such unit is in good working order, all doors and windows in such unit are free of damage and in good working order and such unit is otherwise free of significant damage.  Notwithstanding anything to the contrary set forth herein, if following Buyer’s inspection of the vacant units Buyer identifies any missing appliances, significant damage or other material conditions the cost of which to repair or replace would exceed the applicable credit for a vacant unit to which Buyer is entitled above, Buyer shall receive an additional credit at the Closing in the amount of such excess as mutually agreed upon between Buyer and Seller.  Except as otherwise approved by Buyer in its reasonable discretion, all new leases entered into after the Effective Date shall be (i) arms-length transactions at current market rents consistent with Seller’s past practices with respect to the applicable class of units at the Property, (ii) on Seller’s standard form of lease, (iii) for a term of twelve (12) months, and (iv) with no ongoing or material upfront rent concessions (collectively, the “Leasing Parameters”).  

(b)Notwithstanding the terms of subsection (a) above:

(i)After the expiration of the Due Diligence Period, (i) without the consent of Buyer, which may be withheld in Buyer’s sole and absolute discretion, Seller will not enter into any new service agreement or contract affecting any Individual Property that cannot be terminated without a fee and/or without more than thirty (30) days’ notice; and (ii) without the consent of Buyer, which consent shall not be unreasonably withheld, Seller will not enter into any new service agreement or contract affecting the Property that can be terminated without a fee and upon not more than thirty (30) days’ notice;  

(ii)After the expiration of the Due Diligence Period, without the consent of Buyer, which may be withheld in Buyer’s sole and absolute discretion, none of the leases affecting the Property will be amended to reduce the rents or other charges thereunder or will be renewed for rents or other charges which are less than those payable prior to such renewal; and

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(iii)The failure of Buyer to respond to a request for its consent to an agreement or contract, or an amendment or extension of a lease, or a new lease that does not meet the Leasing Parameters, within three (3) business days of Seller’s request therefor shall be deemed to constitute Buyer’s consent thereto.

(iv)Seller will not remove any personalty from the Property, other than office supplies, cleaning supplies and other similar items utilized in the ordinary course of business and items of equipment and other personalty which are replaced by Seller with an item of the same or better quality in the ordinary course of business; 

(v)Seller will not alter or amend in any way which would be binding upon Buyer or the Property after the Closing, the zoning or any other governmental approval or permit affecting the Property; and

(vi)Seller will not file, or contract with any party to investigate or file, any tax assessment appeal with respect to any Individual Property.

6.2Risk of Physical Loss.  Buyer shall be obligated to acquire an Individual Property pursuant to this Agreement, notwithstanding that such Individual Property is damaged by fire or other casualty prior to the Closing Date, provided that (i) such Individual Property can be repaired for less than ONE MILLION DOLLARS ($1,000,000.00) and the applicable damage does not materially and adversely affect access to parking or any of the Improvements located on such Individual Property, (ii) the cost to repair such damage is covered by insurance maintained by or for Seller, (iii) Seller assigns to Buyer all insurance proceeds, other than proceeds expended in restoration and repair by Seller and rental loss proceeds applied to rents accruing through the Close of Escrow, and (v) Seller credits to the account of Buyer in Escrow, the amount of any deductible under Seller’s insurance (not to exceed the cost of repair).  Any such casualty is hereinafter referred to as a “non-material insured casualty”.  In the event of casualty damage to any Individual Property, other than a non-material insured casualty, Buyer may, at its option, either terminate this Agreement solely with respect to such Individual Property by giving written notice of such termination to Seller within ten (10) days of Buyer’s receipt of written notice of such casualty from Seller, in which event Buyer shall receive a return of a portion of the Deposit as calculated based upon a fraction the numerator of which is the Individual Property Allocation for the applicable Individual Property and the denominator of which is the Purchase Price, and this Agreement shall remain in full force and effect with respect to the remainder of the Property, or elect to proceed with its purchase of the Property, in which event Seller shall transfer and assign to Buyer all insurance proceeds and all rights to receive insurance proceeds by reason of such damage through Escrow, other than proceeds expended in restoration and repair by Seller and rental loss proceeds applied to rents accruing through the Closing Date and shall credit Buyer’s account in Escrow the amount of any deductible under Seller’s insurance (not to exceed the cost of repair).  If the right to receive any such insurance proceeds to be assigned to Buyer is not assignable by Seller to Buyer, Buyer may either terminate this Agreement solely with respect to such Individual Property by giving written notice of such termination to Seller within ten (10) days of Buyer’s receipt of written notice from Seller that such insurance proceeds are not assignable, in which event Buyer shall receive a return of a portion of the Deposit as calculated based upon a fraction the numerator of which is the Individual Property Allocation for the applicable Individual Property and the denominator of 

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which is the Purchase Price, or elect to close the Escrow, in which event Seller shall promptly deliver to Buyer the proceeds of any such insurance received by it following the Close of Escrow, except to the extent such proceeds are in reimbursement for restoration and repair costs incurred or to be incurred by Seller prior to the Close of Escrow and/or rental loss proceeds for rents accruing prior to the Close of Escrow. Notwithstanding any provision to the contrary in this Section 6.2, the Non-Refundable Portion shall remain unaffected by a partial termination hereunder and shall continue to be held by the Escrow Holder.

6.3Condemnation.  In the event that, prior to the Close of Escrow, any governmental entity shall commence any actions of eminent domain or similar type proceedings to take any material portion of any Individual Property (i.e., one for which the condemnation award is One Million and 00/100 Dollars ($1,000,000.00 or more) or access to the parking area or any building is materially or adversely effected or permanent use of any apartment unit is eliminated, Buyer shall have the option either to (i) elect not to acquire such Individual Property, in which event Buyer shall receive a return of a portion of the Deposit as calculated based upon a fraction the numerator of which is the Individual Property Allocation for the applicable Individual Property and the denominator of which is the Purchase Price, or (ii) complete the acquisition of the Property, in which case Buyer shall be entitled to all the proceeds of such taking. Notwithstanding any provision to the contrary in this Section 6.3, the Non-Refundable Portion shall remain unaffected by a partial termination hereunder and shall continue to be held by the Escrow Holder.

6.4Intentionally Omitted.

6.5Attorneys’ Fees.  In the event of any action or legal proceeding between Buyer and Seller seeking enforcement or interpretation of any of the terms and conditions to this Agreement, or otherwise in connection with the Property, the prevailing party, whether by fixed judgment or settlement (and whether or not prosecuted to completion), shall be entitled to recover, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including, but not limited to, reasonable attorneys’ fees, court costs, expert witness fees and costs of appeal at all levels. 

6.6Waiver of Jury Trial.  Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in any legal proceeding directly or indirectly relating to this Agreement whether based on contract, tort or any other theory.

6.7Notices.  All written notices under this Agreement shall be effective upon (i) personal delivery to Buyer or Seller, as the case may be, or (ii) e-mail transmission with a hard copy deposited in United States mail, or (iii) one (1) business day after deposit with an overnight courier service (e.g., Federal Express), or (iv) three (3) business days after deposit in the United States mail, registered, certified, postage fully prepaid and addressed to the respective parties as follows:

 

	
 
	
To Buyer:
	
Independence Realty Operating Partnership, LP

	
 
	

	
c/o Independence Realty Trust

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Two Liberty Place

	
 
	

	
50 S. 16th Street, Suite 3575

	
 
	

	
Philadelphia, Pennsylvania 19102 

	
 
	

	
Attn:  Jessica K. Norman, Esq.

	
 
	

	
Telephone No.: (267) 270-4812
E-mail:  jnorman@irtliving.com 

 

	
 
	
Copy to:
	
Ledgewood

	
 
	

	
Two Commerce Square, Suite 3400

	
 
	

	
2001 Market Street

	
 
	

	
Philadelphia, Pennsylvania 19103

	
 
	

	
Attn: Brian L. Murland, Esq.

	
 
	

	
Telephone No.: (215) 790-2383
E-mail: bmurland@ledgewood.com  

 

	
 
	
To Seller:
	
c/o Hamilton Point Investments LLC

	
 
	

	
2 Huntley Road

	
 
	

	
Old Lyme, Connecticut 06371

	
 
	

	
Attn:  Matthew Sharp / J. David Kelsey

	
 
	

	
Telephone No.: (860) 598-4301 / (860) 598-4302
E-mail: sharp@hamiltonptinv.com / kelsey@hamiltonptinv.com 

 

 

 

	
 
	
Copy to:
	
O’Halloran Ryan PLLC

	
 
	

	
275 Madison Avenue, 36th Floor

	
 
	

	
New York, New York 10016

	
 
	

	
Attn:  Neil O’Halloran

	
 
	

	
Telephone No. (212) 953-1856

	
 
	

	
E-mail: neil@ohalloranryan.com

 

or to such other address as the parties may from time to time designate in writing.

6.8Entire Agreement.  This Agreement and the items incorporated herein contain all the agreements of the parties hereto with respect to the matters contained herein; and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose.  No provisions of this Agreement may be amended or modified in any manner whatsoever except by an agreement in writing signed by duly authorized officers or representatives of each of the parties hereto.

6.9Successors.  The terms, covenants and conditions of this Agreement shall be binding upon and shall inure to the benefit of the heirs, executors, administrators and assigns of the respective parties hereto.

6.10Assignment.  

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(a)By Seller.  Seller shall not be permitted to assign this Agreement and its rights, duties and obligations hereunder.

(b)By Buyer.  Except as provided in this Section, Buyer may not assign this Agreement and/or its rights hereunder without the consent of Seller, which consent may be withheld in Seller’s sole and absolute discretion.  Any purported assignment without such consent shall be void.  Buyer shall be permitted, however, to assign this Agreement and the right to purchase the Property to a Buyer Affiliate without the consent or approval of Seller provided that Seller is given written notice of such assignment at least three (3) days prior to the Closing Date and, at the request of Seller, Buyer provides a certification that such assignee is a Buyer Affiliate, and such Buyer Affiliate agrees in writing to be bound by the Agreement.  For purposes of this Agreement, “Buyer Affiliate” means any entity that is directly or indirectly controlled by Buyer or an affiliate or subsidiary of Independence Realty Trust (as a manager, general partner, or other similar capacity) and in which Buyer owns a majority economic interest.  Buyer shall not be released and discharged from any liability or obligations under this Agreement on account of such assignment.  

6.11Governing Law; Jurisdiction.  This Agreement shall be governed by the laws of the State of New York and any questions arising hereunder shall be construed or determined according to such laws. Any action, suit or proceeding arising out of this Agreement or the transactions contemplated by this Agreement shall be brought exclusively in the United States District Court for the Southern District of New York or the Supreme Court of the State of New York located in New York City, New York except in the case of a suit for specific performance pursuant to Section 4.12 hereof, which shall be brought in a court of competent jurisdiction in the state of the Individual Properties, and Seller and Buyer agree that such courts are the most convenient forum for resolution of any such action and further agree to submit to the jurisdiction of such courts and waive any right to object to venue in such courts.

6.12Headings.  Headings at the beginning of each numbered Article and Section of this Agreement are solely for the convenience of the parties and are not a part of this Agreement.

6.13Time.  Time is of the essence of this Agreement, it being understood that each date set forth herein and the obligations of the parties to be satisfied by such date have been the subject of specific negotiation by the parties.

6.14Time Period Computations.  All periods of time referred to in this Agreement shall include all Saturdays, Sundays and New York state or national holidays, unless the reference is to business days, in which event such weekends and holidays shall be excluded in the computation of time, and provided that if the last day to perform any act or give any notice with respect to this Agreement shall fall on a Saturday, Sunday or New York state or national holiday, such act or notice shall be deemed to have been timely performed or given on the next succeeding business day.

6.15Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.  Signatures may be exchanged by facsimile or electronic mail, and each 

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party agrees to be bound by its own facsimile or electronic signature and to accept the facsimile or electronic signatures of the other party.

6.16Brokerage Commissions.  Each party represents and warrants that, other than KeyBanc Capital Markets (“Broker”), neither party has retained any brokers or finders to represent its interests in connection with this transaction.  Seller shall, upon the Close of Escrow, pay a brokerage commission to Broker pursuant to a separate agreement, if and only if Escrow closes and not otherwise.  Except as provided above, each party agrees to indemnify and hold the other harmless from and against all liabilities, costs, damages and expenses, including, without limitation, reasonable attorneys’ fees, resulting from any claims or fees or commissions, based upon agreements by it, if any, to pay any additional broker’s commission and/or finder’s fee.

6.17Information Report.  Escrow Holder shall file and Buyer and Seller agree to cooperate with Escrow Holder and with each other in completing any report (“Information Report”) and/or other information required to be delivered to the Internal Revenue Service pursuant to Internal Revenue Code Section 6045(e) regarding the real estate sales transaction contemplated by this Agreement, including, without limitation, Internal Revenue Service Form 1099-B as such may be hereinafter modified or amended by the Internal Revenue Service, or as may be required pursuant to any regulation now or hereinafter promulgated by the Treasury Department with respect thereto.  Buyer and Seller also agree that Buyer and Seller, their respective employees and attorneys, and Escrow Holder and its employees may disclose to the Internal Revenue Service, whether pursuant to such Information Report or otherwise, any information regarding this Agreement or the transaction contemplated herein as such party reasonably deems to be required to be disclosed to the Internal Revenue Service by such party pursuant to Internal Revenue Code Section 6045(e), and further agree that neither Buyer nor Seller shall seek to hold any such party liable for the disclosure to the Internal Revenue Service of any such information.

6.18INDEPENDENT COUNSEL.  EACH PARTY TO THIS AGREEMENT ADMITS, ACKNOWLEDGES AND REPRESENTS THAT IT HAS HAD THE OPPORTUNITY TO CONSULT WITH AND BE REPRESENTED BY INDEPENDENT COUNSEL OF SUCH PARTY’S CHOICE IN CONNECTION WITH THE NEGOTIATION AND EXECUTION OF THIS AGREEMENT.  EACH PARTY HAS REVIEWED AND REVISED THIS AGREEMENT AND, THEREFORE, THE RULE OF CONSTRUCTION REQUIRING THAT ANY AMBIGUITY BE RESOLVED AGAINST THE DRAFTING PARTY SHALL NOT BE EMPLOYED IN THE INTERPRETATION OF THIS AGREEMENT.  EACH PARTY FURTHER ADMITS, ACKNOWLEDGES AND REPRESENTS THAT IT HAS NOT RELIED ON ANY REPRESENTATION OR STATEMENT MADE BY ANY OF THE ATTORNEYS OF THE OTHER PARTY WITH REGARD TO THE SUBJECT MATTER, BASIS, OR EFFECT OF THIS AGREEMENT.

6.19Acceptance of Deed.  Acceptance of the Deed by Buyer shall be deemed to fully and completely discharge any and all obligations of Seller hereunder and the terms of this Agreement shall merge into such Deed, other than those obligations, if any, which expressly survive the Closing pursuant to the terms of this Agreement.

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6.20Buyer’s Delivery of Work Product.  In the event this Agreement is terminated for any reason prior to the Closing (other than by reason of a Seller default), if requested by Seller, Buyer shall, promptly deliver and assign to Seller, at no material cost to Seller, copies of all entitlements, applications, submittals, reports, surveys, studies, analyses, improvement plans, drawings, specifications, and other plans, reports and materials generated by or for Buyer with respect to the Property.

6.21Intentionally Omitted.  

6.22No Third Party Beneficiary.  No term or provision of this Agreement is intended to, or shall be, for the benefit of any Person not a party hereto and no such Person shall have any right or cause of action hereunder.  

6.23Limited Liability.  The obligations of Seller under this Agreement and under all of the documents referenced herein are intended to be binding only on the assets of Seller and Guarantor (as defined in Section 6.23 below) and shall not be personally binding upon, nor shall any resort be had to, the private properties of any member of Seller or any trustee, partner, member, manager, officer, director, employee or affiliate of Seller.

6.24Seller's Maximum Aggregate Liability; Minimum Claim.  

(a)Notwithstanding any provision to the contrary contained in this Agreement or any documents executed by Seller pursuant hereto or in connection herewith, the maximum aggregate liability of Seller for Seller’s breaches of representations and warranties herein, or in any documents executed by Seller at Closing shall not exceed Three Million Five Hundred Thousand and 00/100 Dollars ($3,500,000.00) in the aggregate.  In addition, Buyer acknowledges and agrees that Seller shall have no liability for, and Buyer shall not make any claim on account of, any breach of any representation or warranty herein except to the extent the aggregate measure of such claims exceeds Fifty Thousand and 00/100 Dollars ($50,000.00).  Notwithstanding the foregoing or anything to the contrary contained in this Agreement, if the Close of Escrow occurs, Buyer hereby expressly waives, relinquishes and releases any right or remedy available to it at law, in equity or under this Agreement to make a claim against Seller or Guarantor for damages that Buyer may incur, or to rescind this Agreement and the transaction, as the result of any of Seller's representations or warranties being untrue, inaccurate or incorrect if Buyer had actual knowledge that such representation or warranty was untrue, inaccurate or incorrect at the time of the Close of Escrow.  The provisions of this Section 6.24 shall survive the Closing. 

(b)In consideration of Buyer’s execution of this Agreement, Entity Seller (“Guarantor”) hereby absolutely, unconditionally and irrevocably guarantees to Buyer and its assignees any liability of Seller arising from Seller’s misrepresentation under Section 5.9 hereof, subject in all cases to the cap on liability set forth in clause (a) above.  Guarantor hereby covenants and agrees to (a) continue as an entity in good standing during the Survival Period or, if any claim is properly filed by Buyer during the Survival Period in respect of Seller’s representations and warranties set forth in Section 5.9 hereof, then until the resolution of such claim, and (b) remain adequately capitalized so that Guarantor shall be able to satisfy the payment and performance of any claim asserted by Buyer during the Survival Period in respect 

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of Seller’ representations and warranties set forth in Section 5.9 hereof.  Guarantor represents and acknowledges that Guarantor owns a substantial interest in Property Seller and the IN/OH Property Owner, that Guarantor will derive substantial benefits from the execution of this Agreement and the transactions contemplated thereby, and that Guarantor’s agreement to be bound hereby is a material inducement and condition to Buyer’s execution of this Agreement.

6.25Conditions to Closing.  It shall be a condition of Closing that Seller has complied with all of its obligations set forth in this Agreement, that all of Seller’s representations and warranties be true and correct at Closing and that the Title Company is prepared to issue a title policy to Buyer in accordance with Buyer’s Title Notice.

6.26Incorporation.  Each of the Exhibits and Schedules as attached to this Agreement, is incorporated herein and made a part hereof.

 

[Remainder of page intentionally left blank.]

 

 

-39-

39

Execution Copy

IN WITNESS WHEREOF, Buyer and Seller have executed this Agreement as of the date first above written.

 

PROPERTY SELLER:

 

	

	
HPI LIVE OAK TRACE LLC, a Delaware limited liability company

 

 

By: /s/Matt Sharp

Name: Matt Sharp

Title:   Authorized Signatory

 

 

	

	
HPI TIDES LLC, a Delaware limited liability company

 

 

By: /s/Matt Sharp

Name: Matt Sharp

Title:   Authorized Signatory

 

 

	

	
HPI TIDES LAND LLC, a Delaware limited liability company

 

By: /s/Matt Sharp

Name: Matt Sharp

Title:   Authorized Signatory

 

	

	
 

	

	
HPI HUNTERSTONE LLC, a Delaware limited liability company

 

 

By: /s/Matt Sharp

Name: Matt Sharp

Title:   Authorized Signatory

 

	

	

-1-

40

		
HPI CHERRY GROVE LLC, a Delaware limited liability company

 

 

By: /s/Matt Sharp

Name: Matt Sharp

Title:   Authorized Signatory

 

	

	
HPI CREEKSIDE LLC, a Delaware limited liability company

 

 

By: /s/Matt Sharp

Name: Matt Sharp

Title:   Authorized Signatory

 

 

ENTITY SELLER:

 

HPI REAL ESTATE OPPORTUNITY FUND III, LLC, a Delaware limited liability company

 

 

By: /s/J. David Kelsey

Name: J. David Kelsey

Title:   Authorized Signatory

-41-

41

BUYER:

 

INDEPENDENCE REALTY OPERATING PARTNERSHIP, LP, a Delaware limited partnership

 

	
 
	
By:   
	
Independence Realty Trust, Inc., its general partner  

 

By:       /s/James Sebra

Name:  James Sebra

Title:    Chief Financial Officer

 

-42-

42

ACCEPTANCE BY ESCROW HOLDER

The undersigned hereby acknowledges that it has received originally executed counterparts or a fully executed original of the foregoing Purchase and Sale Agreement and agrees to act as Escrow Holder thereunder and to be bound by and perform the terms thereof as such terms apply to Escrow Holder.

Dated:  September 7, 2017

LAND SERVICES USA, INC.

By:/s/Alison Zugschwert

Name: Alison Zugschwert

Title: Title Officer

 

 

 

-43-

43

Execution Copy

JOINDER BY GUARANTOR

 

Guarantor hereby executes this Agreement solely for the purpose of acknowledging and agreeing to be bound by the provisions of Section 6.24(b) of this Agreement.

 

 

HPI REAL ESTATE OPPORTUNITY FUND III, LLC, a Delaware limited liability company

 

 

By: /s/J. David Kelsey

Name: J. David Kelsey

Title:   Authorized Signatory

                    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-1-

44

SCHEDULE 1

 

			
	
Property Owner

 
	
Property Name
	
Address

	
HPI Live Oak Trace LLC (the “Live Oak Seller”)

 
	
Live Oak Trace (the “Live Oak Property”)
	
7615 Magnolia Beach Rd., Denham Springs, LA 70726

	
HPI Tides LLC

(the “Tides Seller”)

 
	
Tides At Calabash (the “Tides Property”)

 
	
7112 Town Center Rd., Sunset, NC 26468

	
HPI Tides Land LLC (the “Tides Vacant Land Seller”)

 
	
Tides Vacant Land
	
N/A

	
HPI Cherry Grove LLC (the “Cherry Grove Seller”)

 
	
Cherry Grove Commons (the “Cherry Grove Property”)
	
1100 David Street, North Myrtle Beach, SC 29582

	
HPI Hunterstone LLC (the “Brunswick Point Seller”)

 
	
Brunswick Point (the “Brunswick Point Property”)
	
1001 Hunterstone Dr., Leland, NC 28451

	
HPI Creekside LLC (the “Creekside Seller”)

 
	
Creekside Corners Apartments (the “Creekside Property”)
	
5301 West Fairington Pkwy., Lithonia, GA 30038

	
HPI Schirm Farms LLC (the “Schirm Farms Property Owner”) 

 
	
Schirm Farms (the “Schirm Farms Property”)
	
5340 Saddler Way, Canal Winchester, OH 43110

	
HPI Hartshire LLC (the “Hartshire Property Owner”)

 
	
Hartshire Lakes (the “Hartshire Property”)
	
3170 Hartshire South Dr., Bargersville, IN 46106

	
HPI Kensington Commons LLC (the “Kensington Property Owner”)

 
	
Kensington Commons Residences (the “Kensington Property”)

 
	
6300 Refugee Rd., Canal Winchester, OH 43110

	
HPI Riverchase LLC (the “Riverchase Property Owner”)

 
	
Riverchase Apartments  (the “Riverchase Property”)
	
2730 Riverchase Dr., Indianapolis, IN 46214

 

-45-

45

 

Schedule 4.9(c)

TRANSFER/DOCUMENTARY STAMP TAX, TITLE PREMIUM AND SEARCH AND EXAM FEE ALLOCATIONS

 

				
	
STATE

 
	
TRANSFER TAXES
	
OWNER’S POLICY PREMIUM
	
SEARCH AND EXAM FEES

	
INDIANA
	
NONE
	
SELLER PAYS
	
SELLER PAYS

	
OHIO
	
SELLER PAYS
	
DIVIDED EQUALLY BETWEEN BUYER AND SELLER
	
SELLER PAYS

	
NORTH CAROLINA
	
SELLER PAYS
	
BUYER PAYS
	
BUYER PAYS

	
SOUTH CAROLINA
	
SELLER PAYS
	
BUYER PAYS
	
BUYER PAYS

	
LOUISIANA
	
NONE
	
BUYER PAYS
	
BUYER PAYS

	
GEORGIA
	
SELLER PAYS
	
DIVIDED EQUALLY BETWEEN BUYER AND SELLER
	
BUYER PAYS

 

			
	
 
	
 
	
 

46

 

Schedule 5.1(c)

LIVE OAK REPAIRS

 

			
	
 
	
 
	
 

47

 

Schedule 5.9(b)

IN/OH PROPERTY OWNER’S ORGANIZATIONAL DOCUMENTS

 

[TO COME]

			
	
 
	
 
	
 

1

 

Schedule 5.9(h)

 

PENDING LITIGATION

 

 

	
 
	
1.
	
Khalil Johnson, individually and on behalf of other similarly situated individuals v Mike Williams, an individual and Fowler, Hein, Cheatwood & Williams, PA. 

United States District Court, Northern District of Georgia Civil Action File No. 17-cv-00349-LMM-CMS. Notice of Lawsuit Seeking Damages pursuant to the Fair Debt Collection Practices Act (FDCPA) and seeking Class Action.

This is a former resident at the Creekside Property who defaulted on the lease, eviction proceedings were brought, and this resident has now suit. This is not a material suit and will be resolved prior to closing. 

			
	
 
	
 
	
 

2

 

Schedule 5.9(k)-1

 

RENT ROLL

 

 

 

 

			
	
 
	
 
	
 

3

 

Schedule 5.9(k)-2

 

ARREARAGE REPORT

 

 

 

			
	
 
	
 
	
 

4

 

Schedule 5.9(l)

 

PROPERTY CONTRACTS

 

 

 

			
	
 
	
 
	
 

5

 

EXHIBIT “A-1”

LEGAL DESCRIPTION OF LIVE OAK PROPERTY

 

 

			
	
 
	
 
	
 

6

 

EXHIBIT “A-2”

LEGAL DESCRIPTION OF TIDES PROPERTY

 

			
	
 
	
 
	
 

7

 

EXHIBIT “A-3”

LEGAL DESCRIPTION OF TIDES VACANT LAND PROPERTY

 

			
	
 
	
 
	
 

8

 

EXHIBIT “A-4”

 

LEGAL DESCRIPTION OF CHERRY GROVE PROPERTY

 

 

 

 

 

 

 

 

 

 

 

 

 

			
	
 
	
 
	
 

9

 

EXHIBIT “A-5”

LEGAL DESCRIPTION OF BRUNSWICK POINT PROPERTY

 

 

 

 

			
	
 
	
 
	
 

10

 

 

 

 

 

 

 

 

 

 

EXHIBIT “A-6”

LEGAL DESCRIPTION OF CREEKSIDE PROPERTY

 

			
	
 
	
 
	
 

11

 

EXHIBIT “A-7”

LEGAL DESCRIPTION OF SCHIRM FARMS PROPERTY

 

 

 

 

 

			
	
 
	
 
	
 

12

 

 

EXHIBIT “A-8”

LEGAL DESCRIPTION OF HARTSHIRE PROPERTY

 

 

			
	
 
	
 
	
 

13

 

EXHIBIT “A-9”

LEGAL DESCRIPTION OF KENSINGTON PROPERTY

 

			
	
 
	
 
	
 

14

 

EXHIBIT “A-10”

LEGAL DESCRIPTION OF RIVERCHASE PROPERTY

 

 

 

			
	
 
	
 
	
 

15

 

 

Exhibit B-1

Loan Documents – Hartshire Property Owner

 

	
 
	
1.
	
Promissory Note dated December 19, 2014 from the Hartshire Property Owner to Rialto Mortgage Finance, LLC, as lender (“Rialto”), in the original principal amount of $16,000,000.00; 

	
 
	
2.
	
Loan Agreement dated December 19, 2014 between the Hartshire Property Owner and Rialto;

	
 
	
3.
	
Mortgage, Assignment of Leases and Rents, Fixture Filing and Security Agreement, dated December 19, 2014 by Hartshire Seller to Rialto;

	
 
	
4.
	
Limited Warranty Deed dated December 17, 2014 between Hartshire Property Owner and Monty Titling Trust 1;

	
 
	
5.
	
Guaranty of Recourse Obligations dated as of December 19, 2014 by Matthew A. Sharp and J. David Kelsey (collectively, the “Guarantor”) for the benefit of Rialto;

	
 
	
6.
	
Environmental Indemnity Agreement dated as of December 19, 2014 by Hartshire Property Owner and Guarantor in favor of Rialto;

	
 
	
7.
	
Assignment of Leases and Rents dated December 19, 2014 by Hartshire Property Owner to Rialto;

	
 
	
8.
	
Assignment of Management Agreement and Subordination of Management Fees dated December 19, 2014 by Hartshire Property Owner to Rialto, consented and agreed to by Hamilton Point Property Management LLC;

	
 
	
9.
	
Restricted Account Agreement (Springing Cash Management Account) dated December 19, 2014 by and among Hartshire Property Owner, Rialto and Wells Fargo Bank, National Association;

	
 
	
10.
	
Deposit Account Control Agreement (Springing Lockbox) dated December 19, 2014 by and among Hartshire Property Owner, Rialto and Wells Fargo Bank, National Association;

	
 
	
11.
	
Borrower’s Certification dated December 19, 2014 by Hartshire Property Owner;

	
 
	
12.
	
(2) Two UCC-1 Financing Statements naming Hartshire Property Owner, as debtor and Rialto, as secured party;

	
 
	
13.
	
W-9; and

	
 
	
14.
	
Escrow Letter dated December 16, 2014.

			
	
 
	
 
	
 

16

 

Exhibit B-2

Loan Documents – Brunswick Point Seller

	
 
	
1.
	
Promissory Note dated May 1, 2015 from the Brunswick Point Seller to Rialto Mortgage Finance, LLC, as lender (“Rialto”), in the original principal amount of $19,000,000.00;

	
 
	
2.
	
Loan Agreement dated May 1, 2015 between the Brunswick Point Seller and Rialto;

	
 
	
3.
	
Deed of Trust, Assignment of Leases and Rents, Fixture Filing and Security Agreement, dated May 1, 2015 by Brunswick Point Seller to Harbor City Title Insurance Agency of NC, Inc., as trustee for the benefit of Rialto;

	
 
	
4.
	
Guaranty of Recourse Obligations dated as of May 1, 2015 by Matthew A. Sharp and J. David Kelsey (collectively, the “Guarantor”) for the benefit of Rialto;

	
 
	
5.
	
Environmental Indemnity Agreement dated as of May 1, 2015 by Brunswick Point Seller and Guarantor in favor of Rialto;

	
 
	
6.
	
Assignment of Leases and Rents dated May 1, 2015 by Brunswick Point Seller to Rialto;

	
 
	
7.
	
Assignment of Management Agreement and Subordination of Management Fees dated May 1, 2015 by Brunswick Point Seller to Rialto, consented and agreed to by Hamilton Point Property Management LLC;

	
 
	
8.
	
Assignment and Assumption of Leases and Contracts dated May 1, 2015 by and between Brunswick Point Seller and Hunterstone Apartments LLC (“Hunterstone Apartments”);

	
 
	
9.
	
Bill of Sale and Assignment dated May 1, 2015 from Hunterstone Apartments to Brunswick Point Seller;

	
 
	
10.
	
 Certificate of Non-foreign Status of Transferor executed by Hunterstone Apartments;

	
 
	
11.
	
Certification (1099) Internal Revenue Service North Carolina Department of Revenue dated April 29, 2015 executed by Hunterstone Apartments;

	
 
	
12.
	
Estoppel Certificate dated April 28, 2015 by Westgate Master Multi-Family Association, Inc.;

	
 
	
13.
	
Cash Management Agreement dated May 1, 2015 between Brunswick Point Seller and Rialto;

	
 
	
14.
	
Restricted Account Agreement (Springing Cash Management Account) dated May 1, 2015 by and among Brunswick Point Seller, Rialto and Wells Fargo Bank, National Association;

	
 
	
15.
	
Deposit Account Control Agreement (Springing Lockbox) dated May 1, 2015 by and among Brunswick Point Seller, Rialto and Wells Fargo Bank, National Association;

	
 
	
16.
	
Borrower’s Certification dated May 1, 2015 by Brunswick Point Seller;

	
 
	
17.
	
Post-Closing Agreement dated May 1, 2015 by Brunswick Point Seller and Hunterstone Apartments; 

	
 
	
18.
	
(2) Two UCC-1 Financing Statements naming Brunswick Point Seller as debtor and Rialto, as secured party;

			
	
 
	
 
	
 

17

 

	
 
	
19.
	
W-9; 

	
 
	
20.
	
Escrow Letter dated April 30, 2015;

 

	
 
	
21.
	
Affidavit of Independent Director executed by Ephraim A. Stern; and

 

	
 
	
22.
	
Notice to Tenants dated May 1, 2015 executed by Hunterstone Apartments and Brunswick Point Seller.

			
	
 
	
 
	
 

18

 

Exhibit B-3

Loan Documents – Creekside Seller

	
 
	
1.
	
Promissory Note dated December 23, 2014 from the Creekside Seller to Rialto Mortgage Finance, LLC, as lender (“Rialto”), in the original principal amount of $23,500,000.00;

	
 
	
2.
	
Loan Agreement dated December 23, 2014 between Creekside Seller and Rialto;

	
 
	
3.
	
Deed to Secure Debt, Assignment of Leases and Rents, Fixture Filing and Security Agreement, dated December 23, 2014 by Creekside Seller to Rialto;

	
 
	
4.
	
Guaranty of Recourse Obligations dated as of December 23, 2014 by Matthew A. Sharp and J. David Kelsey (collectively, the “Guarantor”) for the benefit of Rialto;

	
 
	
5.
	
Environmental Indemnity Agreement dated as of December 23, 2014 by Creekside Seller and Guarantor in favor of Rialto;

	
 
	
6.
	
Assignment of Leases and Rents dated December 23, 2014 by Creekside Seller to Rialto;

	
 
	
7.
	
Assignment of Management Agreement and Subordination of Management Fees dated December 23, 2014 by Creekside Seller to Rialto, consented and agreed to by Hamilton Point Property Management LLC;

	
 
	
8.
	
Assignment and Assumption of Leases dated December 23, 2014 by and between Creekside Seller and Turnberry Gardens Associates, LLC (“Turnberry”); 

	
 
	
9.
	
Assignment and Assumption of Service Contracts dated December 23, 2014 by and between Creekside Seller and Turnberry;

	
 
	
10.
	
Bill of Sale  December 23, 2014 by Turnberry in favor of Creekside Seller;

	
 
	
11.
	
 FIRPTA Certificate dated December 23, 2014 executed by Turnberry;

	
 
	
12.
	
Notice to Tenants dated December 23, 2014 executed by Turnberry;

	
 
	
13.
	
Seller’s Certificate Regarding Rent Roll executed by Turnberry (missing rent roll);

	
 
	
14.
	
 Affidavit of Independent Director executed by Aaron Sheklin;

	
 
	
15.
	
 Affidavit of Independent Director executed by Ephraim A. Stern;

	
 
	
16.
	
Cash Management Agreement dated December 23, 2014 between Creekside Seller and Rialto;

	
 
	
17.
	
Restricted Account Agreement (Springing Cash Management Account) dated December 23, 2014 by and among Creekside Seller, Rialto and Wells Fargo Bank, National Association;

	
 
	
18.
	
Deposit Account Control Agreement (Springing Lockbox) dated December 23, 2014 by and among Creekside Seller, Rialto and Wells Fargo Bank, National Association;

	
 
	
19.
	
Borrower’s Certification dated December 23, 2014 by Creekside Seller;

	
 
	
20.
	
Closing Certificate dated December 23, 2014 executed by Turnberry 

			
	
 
	
 
	
 

19

 

	
 
	
21.
	
(2) Two UCC-1 Financing Statements naming Creekside Seller, as debtor and Rialto, as secured party;

	
 
	
22.
	
W-9; 

	
 
	
23.
	
Escrow Letter dated December 23, 2014;

 

	
 
	
24.
	
Limited Warranty Deed from Turnberry to Creekside Seller; and 

 

	
 
	
25.
	
Closing Statement dated December 23, 2014.

 

			
	
 
	
 
	
 

20

 

EXHIBIT C

Defeased Loans

 

					
	
Property Owner
	
Original Principal Amount
	
Original Lender
	
Origination Date
	
Maturity Date

	
Live Oak Trace Seller

 
	
 

$12,720,000.00
	
 

Rialto Mortgage Finance, LLC
	
 

July 12, 2013
	
 

August 6, 2018

	
Tides Seller

 
	
$6,850,000.00
	
Rialto Mortgage Finance, LLC
	
September 9, 2015
	
September 6, 2020

	
Kensington Property Owner

 
	
 

$12,000,000.00
	
 

Rialto Mortgage Finance, LLC
	
 

October 24, 2014
	
 

November 6, 2019

	
Schirm Farms Property Owner

 
	
 

$12,000,000.00
	
 

Starwood Mortgage Capital LLC
	
 

July 18, 2014
	
 

August 6, 2019

	
Cherry Grove Seller

 
	
 

$10,600,000.00
	
 

Rialto Mortgage Finance, LLC
	
 

July 31, 2014
	
 

August 6, 2019

	
Riverchase Property Owner

 
	
 

$12,000,000.00
	
 

Rialto Mortgage Finance, LLC
	
 

May 1, 2015
	
 

May 6, 2020

 

			
	
 
	
 
	
 

21

 

EXHIBIT D-1

DEED – BRUNSWICK POINT

 

 NORTH CAROLINA SPECIAL WARRANTY DEED

Excise Tax:  $

 

Parcel Identifier No._________   Verified by  County on the  day of ______, 2014

By: 

 

 

Mail after recording to:

 

Prepared by:

 

 

THIS DEED made this  day of _______, 2017 by and between

 

		
	
GRANTOR

 

 
	
GRANTEE

 

 

 

 

	
 
	
 

Enter in appropriate block for each party:  name, address, and, if appropriate, character of entity, e.g. corporation or partnership.

 

The designation Grantor and Grantee as used herein shall include said parties, their heirs, successors, and assigns, and shall include singular, plural, masculine, feminine or neuter as required by context.

WITNESSETH, that the Grantor, for a valuable consideration paid by the Grantee, the receipt and sufficiency of which are hereby acknowledged, has and by these presents does grant, bargain, sell and convey unto the Grantee in fee simple, all that certain lot or parcel of land situated in the City of Calabash, Brunswick County, North Carolina and more particularly described as follows:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE.

The property hereinabove described was acquired by Grantor by instrument recorded in Book [___], Page [___].

TO HAVE AND TO HOLD the aforesaid lot or parcel of land and all privileges and appurtenances thereto belonging to the Grantee in fee simple.

And the Grantor covenants with the Grantee, that Grantor has done nothing to impair such title as Grantor received, and Grantor will warrant and defend the title against the lawful claims of all persons claiming by, under or through Grantor, other than the following exceptions:

SEE EXHIBIT B ATTACEHD HERETO AND INCORPORATED HEREIN BY REFERENCE.

IN WITNESS WHEREOF, the Grantor has duly executed the foregoing as of the day and year first above written.

 

			
	
 
	
 
	
 

			
	
 
	
 
	
 

22

 

			
	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 

	
Print Name: 

Title: 
	
 
	
 

	
 
	
 
	
 

State of ______________

County of ______________

I, _______________________________the undersigned Notary Public of the County of Montgomery and State of Pennsylvania, certify that ________________, ____________ of __________________ a Delaware limited liability company,  personally appeared before me this day and acknowledged the due execution of the foregoing instrument for the purposes therein expressed. Witness my hand and Notarial stamp or seal this  day of _________ _______, 2017.

 

(Seal)Notary’s Printed Name 

My Commission Expires: 

			
	
 
	
 
	
 

23

 

Exhibit A to Special Warranty Deed

 

Description of Land

 

Exhibit B to Special Warranty Deed

 

Permitted Exceptions

 

	
1.
	
Taxes for the current year that are not yet due and payable and subsequent years, and all applicable zoning and other land use regulations or restrictions of any political subdivision or agency in which the Property is situated; provided, however, that such reference shall not operate to reimpose same.

[INSERT PERMITTED EXCEPTIONS]

			
	
 
	
 
	
 

24

 

 

EXHIBIT D-2

DEED-CHERRY GROVE

 

 

STATE OF SOUTH CAROLINA)TITLE TO REAL ESTATE

)(LIMITED WARRANTY DEED)

COUNTY OF ___________)

KNOW ALL MEN BY THESE PRESENTS, that ____________________, a ________________ (hereinafter whether singular or plural referred to as the “Grantor”) in consideration of Five and No/100 Dollars ($5.00) and other valuable consideration, to the Grantor in hand paid at or before the sealing and delivery of these presents by _________________, a ________________ (hereinafter referred to as the “Grantee”) in the State aforesaid, the receipt and sufficiency whereof are hereby acknowledged, has granted, bargained, sold and released, and by these presents does grant, bargain, sell and release unto the Grantee, the real estate (the “Premises”) described as follows:

See Exhibit A attached hereto and incorporated herein by reference.

The conveyances made by each of the entities constituting Grantor are made to the extent of each of their applicable undivided interest in the Premises.  

For informational purposes only, the street address of the Premises is _________________________.

GRANTEE’S MAILING ADDRESS: For the purpose of this deed Grantee’s mailing address is:

____________________

____________________

TOGETHER with all and singular, the rights, members, hereditaments and appurtenances to the said Premises belonging or in any way incident or appertaining, including but not limited to all improvements of any nature located on the Premises and all easements and rights‐of‐way appurtenant to the Premises.

SUBJECT TO those matters listed on Exhibit B attached hereto (the “Permitted Exceptions”).

TO HAVE AND TO HOLD all and singular the Premises unto the Grantee, its Successors and Assigns forever.

And the Grantor does hereby bind itself, its successors and assigns, executors, administrators and other lawful representatives, to warrant and forever defend all and singular the Premises unto the Grantee, its 

			
	
 
	
 
	
 

25

 

successors and assigns, against the Grantor and against the Grantor’s successors and assigns lawfully claiming, or to claim, the same or any part thereof, by and through each of the entities constituting Grantor, as applicable, but no others and not otherwise.

The masculine singular pronouns used throughout this document shall be read as the masculine, feminine or neuter form of pronoun (in singular or plural) as the context shall require.  In addition, the word “Heirs” shall be read as “Successors” in reference to any grantor or grantee which is not an individual.

(continued on next page)

			
	
 
	
 
	
 

26

 

 

WITNESS the Hand and Seal of the Grantor this          day of                        , 2017.

		
	
SIGNED, SEALED AND DELIVERED
IN THE PRESENCE OF:

 

 

_______________________________

WITNESS

 

Its:______________________________

_______________________________

WITNESS

 

 
	
GRANTOR:

 

___________________________,

a _________________________

 

By:________________________

________________________

             ________________________

	
 
	
 

 

 

 

State of _____________        )

§

County of ___________________ )

 

 

On this _____ day of _____________, 2017, personally appeared before me

____________, whose identity is personally known to me (or proven on the basis of satisfactory evidence) and who by me duly sworn/affirmed, did say he is the _______________ of __________________, a _________________ and that said document was signed by him/her on behalf of said ________________________.

 

 

_______________________________________

 

 

 

			
	
 
	
 
	
 

27

 

EXHIBIT D-3

DEED – CREEKSIDE 

 

 

This Instrument prepared

without the benefit of a survey, or a title search, by

and after recording return to:

 

Neil O’Halloran

O’Halloran Ryan LLP

275 Madison Avenue, 36th Floor

New York, New York 10016

 

STATE OF GEORGIA)

DEKALB COUNTY )

 

limited WARRANTY DEED

 

THIS INDENTURE, made this ___ day of __________, 2017, by HPI CREEKSIDE LLC, a Delaware limited liability company, whose address is c/o Hamilton Point Investments LLC, 2 Huntley Road, Old Lyme, CT 06371 (hereinafter referred to as "Grantor"), to INDEPENDENCE REALTY OPERATING PARTNERSHIP, a Delaware limited liability company, whose address is [______________________] (hereinafter referred to as "Grantee").

 

WITNESSETH that: Grantor, for and in consideration of the sum of TEN DOLLARS AND OTHER GOOD AND VLAUABLE CONSIDERATIONS ($10.00) DOLLARS in hand paid at and before the sealing and delivery of these presents, the receipt, adequacy and sufficiency whereof are hereby acknowledged, has granted, bargained, sold, aliened, conveyed and confirmed, and by these presents does grant, bargain, sell, alien, convey and confirm unto the said Grantee,

 

ALL THAT CERTAIN PARCEL OF LAND DESCRIBED ON ATTACHED EXHIBIT A, TOGETHER WITH ALL IMPROVEMENTS THEREON AND APPURTENANCES THEREUNTO BELONGING.

 

This conveyance is made subject to those matters listed on Exhibit "B" attached hereto (collectively, the "Permitted Encumbrances"). 

 

TO HAVE AND TO HOLD the said tract or parcel of land, with all and singular the rights, members, easements and appurtenances thereof, and all of Grantor’s right, title and interest in any public rights of way adjoining  such land, to the same being, belonging, or in anywise appertaining, to the only proper use, benefit and behoof of the said Grantee forever in FEE SIMPLE. 

 

AND THE SAID Grantor will warrant and forever defend the right and title to the above described property unto the said Grantee against the claims of persons holding by, through, or under the Grantor.

 

 

 

 

 

 

 

			
	
 
	
 
	
 

28

 

[SEE ATTACHED SIGNATURE PAGE]

 

IN WITNESS WHEREOF, Grantor has hereunto caused this Deed to be executed under seal by its duly authorized representative as of the date and year first above written.

GRANTOR:

 

	

	
HPI CREEKSIDE LLC, a Delaware limited liability company

 

	

	
By: ___________________________________

	

	
Name: _______________________

Title:  _______________________

 

 

Signed, sealed and delivered 

in the presence of:

 

 

Unofficial Witness

 

 

 

Notary Public

My commission expires:

 

(NOTARIAL SEAL)

 

[Exhibit A and Exhibit B to be added]

 

 

			
	
 
	
 
	
 

29

 

 

 

 

EXHIBIT D-4

DEED – LIVE OAK

 

 

STATE OF LOUISIANA

 

PARISH OF [____________]

 

 

SPECIAL WARRANTY DEED

 

BE IT KNOWN, that before us, the undersigned Notaries Public, duly qualified and commissioned in and for the jurisdictions below mentioned, on the dates below described, and in the presence of the undersigned competent witnesses, personally came and appeared:

 

 [___________________]

hereafter referred to as “SELLER,” who declared that for the price of [___________________________] DOLLARS, cash, receipt of which is acknowledged, Seller hereby sells, transfers, conveys, sets over and assigns unto:

 [___________________]

hereafter referred to as “BUYER,” the possession of which Buyer acknowledges, the following described property located in Calcasieu Parish, Louisiana, to-wit:

 

[LEGAL TO BE ADDED] 

 

TO HAVE AND TO HOLD the above described premises unto Buyer, its successors and assigns forever, and Seller does hereby bind itself, its successors and assigns to forever warrant and defend said premises unto Buyer, its successors and assigns, against the lawful claims of any person now claiming, or to claim the same, or any part thereof by through or under Seller, but not otherwise, but with full substitution and subrogation in and to all the rights and actions of warranty that Seller has or may have against all preceding owners and vendors, subject only to the Permitted Encumbrances.

In addition, Seller hereby conveys to Buyer, for the same consideration set forth above and subject to the same consideration set for the above and subject to the Permitted Encumbrances, all of Seller’s right, title and interest, if any, in and to adjacent streets, alleys, rights-of-way and strips and gores of land abutting or adjoining the Property.

THE PROPERTY, TOGETHER WITH ALL SERVITUDES, IMPROVEMENTS, STRUCTURES, AND FIXTURES SITUATED THEREIN OR THEREON, ARE CONVEYED TO BUYER “AS IS” AND WITHOUT WARRANTY OF ANY KIND, WHETHER EXPRESS OR IMPLIED, BUT FREE AND CLEAR OF ANY AND ALL ENCUMBRANCES. BUYER ACKNOLWEDGES THAT IN CONSIDERATION FOR THE PROPERTY BEING SOLD AND PURCHASED “AS IS,” BUYER DOES HEREBY RELIEVE AND RELEASE SELLER FOR ANY CLAIMS OR CAUSES OF ACTION FOR RESCISSION OR REDUCTION OF PURCHASE PRICE, OR FOR ANY OTHER ACTION IN REDHIBITION PURSUANT TO LOUISIANA CIVIL CODE ARTICLE 2520, ET SEQ., AND LOUISIANA CIVIL CODE ARTICLE 2541, ET SEQ. ADDITIONALLY, BUYER ACKNOWLEDGES THAT THIS SALE IS MADE WITHOUT 

			
	
 
	
 
	
 

1

 

WARRANTY OF FITNESS FOR ORDINARY OR PARTICULAR USE, PURSUANT TO LOUISIANA CIVIL CODE ARTICLE 2524.  HOWEVER, SELLER HEREBY SUBROGATES BUYER IN AND TO ALL RIGHTS AND ACTIONS IN WARRANTY THAT SELLER HAS OR MAY HAVE AGAINST PREVIOUS OWNERS AND VENDORS OF THE PROPERTY.

 

The Property is being transferred and conveyed subject to the “Permitted Encumbrances” described on Exhibit “A,” attached hereto and made a part hereof.

 

Taxes for the year [____] have been prorated between Buyer and Seller, as of the date of execution below, based on the assessments for the year [____] and may be adjusted by Buyer and Seller upon the filing of the current tax rolls.  Taxes for all prior years have been paid by Seller.

 

All parties signing the within instrument have declared themselves to be of full legal capacity. 

 

Further, by signing this instrument, Buyer acknowledges that Buyer is not acting, directly or indirectly, for or on behalf of, any person, group, entity or nation names in the United States Treasury Department as an entity or nation designated in Presidential Executive Order 13224 as a person who commits, threatens to commit, or supports terrorism; and is not engaged in this transaction directly or indirectly on behalf of, or facilitating this transaction directly or indirectly on behalf of, any such person, group, entity or nation. 

 

All agreements and stipulations herein, and all the obligations herein assumed shall inure to the benefit of and be binding upon the heirs, successors, and assigns of the respective parties, and the Buyer, his heirs and assigns shall have and hold the described property in full ownership forever.

 

This Special Warranty Deed is executed to be effective as of the ___day of [______], 2017.

 

THUS DONE AND SIGNED in the City of _________________________, State of _____________________, on this ______ day of ______, 2017 in the presence of me, Notary Public, and the following competent witnesses.

 

 

WITNESSES:SELLER:

 

[_____________________]

 

 

_________________________________________________________________________________

Print Name:___________________________By: 

Its: 

 

 

_________________________________________

Print Name:___________________________

 

 

 

_________________________________________

NOTARY PUBLIC

 

			
	
 
	
 
	
 

2

 

 

 

THUS DONE AND SIGNED in the City of _________________________, State of _____________________, on this ______ day of ______, 2017, in the presence of me, Notary Public, and the following competent witnesses.

 

 

WITNESSES:BUYER:

 

 

 

 

_________________________________________________________________________________

Print Name:___________________________By: 

Its: 

 

 

_________________________________________

Print Name:___________________________

 

 

 

_________________________________________

NOTARY PUBLIC

 

 

 

 

 

 

 

 

 

Exhibit “A”

Permitted Encumbrances

 

			
	
 
	
 
	
 

3

 

EXHIBIT D-5

DEED-TIDES AND TIDES VACANT LAND

 

 

NORTH CAROLINA SPECIAL WARRANTY DEED

Excise Tax:  $

 

Parcel Identifier No._________   Verified by  County on the  day of ______, 2017

By: 

 

 

Mail after recording to:

 

Prepared by:

 

 

THIS DEED made this  day of _______, 2017 by and between

 

		
	
GRANTOR

 

 
	
GRANTEE

 

 

 

 

	
 
	
 

Enter in appropriate block for each party:  name, address, and, if appropriate, character of entity, e.g. corporation or partnership.

 

The designation Grantor and Grantee as used herein shall include said parties, their heirs, successors, and assigns, and shall include singular, plural, masculine, feminine or neuter as required by context.

WITNESSETH, that the Grantor, for a valuable consideration paid by the Grantee, the receipt of which is hereby acknowledged, has and by these presents does grant, bargain, sell and convey unto the Grantee in fee simple, all that certain lot or parcel of land situated in the City of Calabash, Brunswick County, North Carolina and more particularly described as follows:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE.

The property hereinabove described was acquired by Grantor by instrument recorded in Book [___], Page [___].

TO HAVE AND TO HOLD the aforesaid lot or parcel of land and all privileges and appurtenances thereto belonging to the Grantee in fee simple.

			
	
 
	
 
	
 

4

 

And the Grantor covenants with the Grantee, that Grantor has done nothing to impair such title as Grantor received, and Grantor will warrant and defend the title against the lawful claims of all persons claiming by, under or through Grantor, other than the following exceptions:

SEE EXHIBIT B ATTACEHD HERETO AND INCORPORATED HEREIN BY REFERENCE.

IN WITNESS WHEREOF, the Grantor has duly executed the foregoing as of the day and year first above written.

 

				
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
By:
	
 
	
 
	
 

	
Print Name: 

Title: 
	
 
	
 
	
 

State of ______________

County of ______________

I, _______________________________the undersigned Notary Public of the County of Montgomery and State of Pennsylvania, certify that ________________, ____________ of __________________ a Delaware limited liability company,  personally appeared before me this day and acknowledged the due execution of the foregoing instrument for the purposes therein expressed. Witness my hand and Notarial stamp or seal this  day of _________ _______, 2017.

 

(Seal)Notary’s Printed Name 

My Commission Expires: 

			
	
 
	
 
	
 

5

 

Exhibit A to Special Warranty Deed

 

Description of Land

 

Exhibit B to Special Warranty Deed

 

Permitted Exceptions

 

Taxes for the current year that are not yet due and payable and subsequent years, and all applicable zoning and other land use regulations or restrictions of any political subdivision or agency in which the Property is situated; provided, however, that such reference shall not operate to reimpose same.

[INSERT PERMITTED EXCEPTIONS]

 

			
	
 
	
 
	
 

6

 

EXHIBIT E

Form of Assignment of Leases

 

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Lease Assignment”) is executed as of ________________, 2017 by and between , LLC, a Delaware limited liability company (“Assignor”), and _____________ (“Assignee”).

 

Background

 

Assignor has this day conveyed to the Assignee the real property located in ____________ [___________] and more particularly described in Exhibit A hereto (the “Premises”) pursuant to that certain Purchase and Sale Agreement, dated _________ __, 2017, by and between Assignor and Assignee (the “Agreement”), and, in connection with the conveyance of the Premises, Assignor and Assignee intend that Assignor’s right, title, interests, powers, and privileges in and under all leases and security deposits affecting the Premises and other matters stated herein be assigned and transferred to Assignee.

Agreement

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.Leases.  Assignor hereby transfers and assigns to Assignee all of Assignor’s right, title and interest as landlord or otherwise in the leases with the tenants covering the Premises, as described on the  rent roll attached as Exhibit B hereto and made a part hereof and any guaranties of any such leases (the “Leases”).  By executing this Lease Assignment, Assignee hereby accepts, assumes and agrees to perform all of the terms, obligations, covenants and conditions of the Leases on the part of the landlord therein required to be performed, from and after the date hereof, but not prior thereto. Assignor has assigned or provided a credit to Assignee for all security deposits held by the Assignor relative to the Leases, and Assignee shall fund and hold such deposits as may be required by the Leases and by law (the “Security Deposits”).

 

2.Mutual Indemnification.  Assignor shall indemnify and hold Assignee harmless from and against any and all damages, claims, liabilities, costs (including reasonable attorney’s fees), expenses and causes of action which may arise and accrue from or under the Leases and that are attributable to a default by Assignor in the performance of its obligations under the Leases during the period of time Assignor owned the Premises that are discovered within nine (9) months following the date of this Lease Assignment, but only if Assignee files an action to enforce the foregoing indemnity within ninety (90) days after such discovery.  Assignee shall indemnify and hold Assignor harmless from and against any and all damages, claims, liabilities, costs (including reasonable attorney’s fees), expenses and causes of action which may arise and accrue from or under any of the Leases and that are attributable to periods of time on or after the date hereof, regardless of when same are discovered or asserted, but only if Assignor files an action to enforce the foregoing indemnity within ninety (90) days after such discovery.

 

3.Further Assurances.  Assignor and Assignee agree to take all further actions and execute, acknowledge and deliver all further documents that are reasonably necessary or useful in carrying out the purposes hereof.

 

4.Successors and Assigns.  This Lease Assignment shall inure to the benefit of, and be binding upon, the successors, executors, administrators, legal representatives and assigns of the parties hereto.

			
	
 
	
 
	
 

7

 

 

5.Governing Law.  This Lease Assignment shall be construed and enforced in accordance with and governed by the internal laws of the State of [_____]. 

 

 

[The balance of this page is intentionally left blank]

 

			
	
 
	
 
	
 

8

 

IN WITNESS WHEREOF, this Lease Assignment has been duly signed and sealed by the parties as of the date set forth above.

 

ASSIGNOR:

 

 

By:

Title:

Date of Execution:

 

ASSIGNEE:

 

 

 

By: 

 

Title:

 

Date: 

			
	
 
	
 
	
 

9

 

EXHIBIT A 
(to Assignment and Assumption of Leases)

EXHIBIT B 
(to Assignment and Assumption of Leases)

 

 

 

 

			
	
 
	
 
	
 

10

 

EXHIBIT F

Form of Assignment of Contracts

ASSIGNMENT AND ASSUMPTION OF CONTRACTS 

 

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Contract Assignment”) is executed as of ________________, 2017 by and between _______________________, LLC, a Delaware limited liability company (“Assignor”), and _____________ (“Assignee”).

Background

Assignor has this day conveyed to the Assignee the real property located in ____________ and more particularly described in Exhibit A hereto (the “Premises”) pursuant to that certain Purchase and Sale Agreement, dated ________ __, 2017, by and between Assignor and Assignee (the “Agreement”), and, in connection with the conveyance of the Premises, Assignor and Assignee intend that Assignor’s right, title, interests, powers, and privileges in and under certain service contracts affecting the Premises and other matters stated herein be assigned and transferred to Assignee.

Agreement

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.Contracts.  Assignor hereby transfers and assigns to Assignee all of Assignor’s right, title and interest in the service contracts affecting the Premises that are listed on Exhibit B hereto and made a part hereof (the “Contracts”).  By executing this Contract Assignment, Assignee hereby accepts, assumes and agrees to perform all of the terms, obligations, covenants and conditions of the Contracts on the part of the Assignor therein required to be performed, from and after the date hereof, but not prior thereto.

 

2.Mutual Indemnification.  Assignor shall indemnify and hold Assignee harmless from and against any and all damages, claims, liabilities, costs (including reasonable attorney’s fees), expenses and causes of action which may arise and accrue from or under the Contracts and that are attributable to a default by Assignor in the performance of its obligations under the Contracts during the period of time Assignor owned the Premises that are discovered within nine (9) months following the date of this Assignment, but only if Assignee files an action to enforce the foregoing indemnity within ninety (90) days after such discovery.  Assignee shall indemnify and hold Assignor harmless from and against any and all damages, claims, liabilities, costs (including reasonable attorney’s fees), expenses and causes of action which may arise and accrue from or under any of the Contracts and that are attributable to periods of time on or after the date hereof, regardless of when same are discovered or asserted, but only if Assignor files an action to enforce the foregoing indemnity within ninety (90) days after such discovery.  

 

3.Further Assurances.  Assignor and Assignee agree to take all further actions and execute, acknowledge and deliver all further documents that are reasonably necessary or useful in carrying out the purposes hereof.

 

4.Successors and Assigns.  This Contract Assignment shall inure to the benefit of, and be binding upon, the successors, executors, administrators, legal representatives and assigns of the parties hereto.

 

5.Governing Law.  This Contract Assignment shall be construed and enforced in accordance with and governed by the internal laws of the State of [_________]. 

 

			
	
 
	
 
	
 

11

 

IN WITNESS WHEREOF, this Contract Assignment has been duly signed and sealed by the parties as of the date set forth above.

 

ASSIGNOR:

 

 

By:

Title:

Date of Execution:

 

ASSIGNEE:  

 

 

 

By:

 

Name:

 

Title:

 

Date:

			
	
 
	
 
	
 

12

 

EXHIBIT A
(to Assignment and Assumption of Contracts)

 

 

EXHIBIT B
(to Assignment and Assumption of Contracts)

 

 

			
	
 
	
 
	
 

13

 

EXHIBIT G

Form of Bill of Sale

 

BILL OF SALE, BLANKET CONVEYANCE

AND ASSIGNMENT

 

This Bill of Sale, Blanket Conveyance and Assignment (this “Assignment”) is executed by , LLC, a Delaware limited liability company (“Assignor”) to and for the benefit of _______________, a __________________ (“Assignee”).  

 

RECITALS

WHEREAS, concurrently herewith Assignor is conveying to Assignee by [Limited Warranty Deed] of even date herewith that certain real property (the “Property”), more particularly described on Exhibit A attached hereto and incorporated herein for all purposes, pursuant to that certain Purchase and Sale Agreement, dated ________ __, 2017, by and between Assignor and Assignee (the “Agreement”); and

 

WHEREAS, in connection with the conveyance of the Property, Assignor intends to sell, assign and convey unto Assignee the Assets (defined below).

 

NOW, THEREFORE, in consideration of the foregoing and Ten and No/100 Dollars ($10.00) and other good and valuable consideration in hand paid by Assignee to Assignor, the receipt and sufficiency of which are hereby acknowledged and confessed by Assignor, Assignor and Assignee hereby act and agree as follows:

 

1.Conveyance.  Assignor does hereby ASSIGN, TRANSFER, CONVEY, SET OVER and DELIVER to Assignee, its successors and assigns all personal property, inventory and supplies now owned by Seller and used exclusively in the maintenance and operation of the Property described on Exhibit A (the “Assets”).  ASSIGNOR SHALL AND WILL WARRANT AND DEFEND ASSIGNEE’S TITLE TO THE ASSETS AGAINST ALL AND EVERY PERSON WHOMSOEVER LAWFULLY CLAIMS ANY PORTION OF THE ASSETS BY, FROM OR UNDER ASSIGNOR BUT AGAINST NO OTHERS.  EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THE IMMEDIATELY PRECEDING SENTENCE, ASSIGNOR MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND WHATOSOEVER AS TO THE CONDITION, FITNESS FOR ANY PARTICULAR PURPOSE, MERCHANTABILITY OF THE ASSETS OR ANY OTHER WARRANTY WITH RESPECT TO THE ASSETS, EXPRESS OR IMPLIED.  ASSIGNEE IS HEREBY ACQUIRING THE ASSETS BASED SOLELY UPON ASSIGNEE’S OWN INDEPENDENT INVESTIGATIONS AND INSPECTIONS OF THE ASSETS AND NOT IN RELIANCE ON ANY INFORMATION PROVIDED BY ASSIGNOR OR ASSIGNOR’S AGENTS OR CONTRACTORS.  ASSIGNOR HAS MADE NO AGREEMENT TO ALTER, REPAIR OR IMPROVE ANY OF THE ASSETS. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, ASSIGNOR SPECIFICALLY DISCLAIMS ANY WARRANTY, GUARANTY OR REPRESENTATION, ORAL OR WRITTEN, PAST OR PRESENT, EXPRESS OR IMPLIED, CONCERNING THE ASSETS OR ASSIGNOR’S TITLE THERETO.  

 

2.Counterparts; Governing Law; Successors and Assigns; Authority.  This Assignment may be executed in any number of counterparts, and each counterpart hereof shall be deemed to be an original instrument, but all such counterparts shall constitute but one instrument.  This Assignment shall be construed and enforced in accordance with and governed by the internal laws of the State of [___________].  This Assignment shall bind and inure to the benefit of Assignor and Assignee and their respective successors and assigns.  Each of Assignor and Assignee represents and warrants to the other that it is fully 

			
	
 
	
 
	
 

14

 

empowered and authorized to execute and deliver this Assignment, and the individuals signing this Assignment each represent and warrant that he or she is fully empowered and authorized to do so.

 

IN WITNESS WHEREOF, this Assignment is executed as of this ____ day of _______________, 2017.  

 

 

ASSIGNOR:

 

 

By:

Title:

Date of Execution:

 

ASSIGNEE:  

 

 

 

By:

 

Title:

 

Date:

 

			
	
 
	
 
	
 

15

 

EXHIBIT H

Due Diligence Items

	
	
 

	
 

	
 

	
DELIVERABLES

	
 Utilities

	
Utility bills for the past 12 months

	
Utility Account List (names/addresses of provider, account numbers, contact names)

	
Utility billing program/detail for residents and vacant units

	
 Financial Statements & Reports

	
Current Rent Roll with charge breakdown by tenant (Excel)

	
Tenant concession schedule

	
Operating Statements for YTD and Past 3 Years (Excel)

	
General Ledgers YTD and Past 3 Years (Excel)

	
Capital Expenditure Summary for YTD and Past 3 Years

	
Accounts Payables schedule (Excel)

	
Accounts Receivables schedule by tenant and charge (Excel)

	
Payroll schedule (employee, concessions, role, etc.)

	
Bank statements for the past 12 months

	
Real Estate Tax Bills & Paid Receipts for the Past Three Years

	
Personal Property List

	
Personal Property Tax Returns Filed and supporting property detail

	
Operating Budgets, if available (Excel)

	
Property management contract

	
Market Reports

	
 Property Insurance

	
Property insurance certificates

	
Liability insurance certificates

	
Rent loss and other insurance certificates

	
Insurance Loss Runs for the Past Five Years - Liability

	
Insurance Loss Runs for the Past Five Years - Property

	
 Service/Operating Contracts

	
Vendor List (including name, address, phone number, and contact, etc.)

	
Service and Operating Contracts (cable, trash, laundry, marketing, etc.)

	
Service and Operating Invoices (cable, trash, laundry, marketing, etc.)

	
Termite Contracts along with all Treatment and Bond details

	
Termite Inspection Reports

	
Construction Contracts for significant repairs within the last 24 months

	
Construction Plan Drawings and Specification Books, to be available on site, if any

			
	
 
	
 
	
 

16

 

	
	
Warranties, if any

	
Commercial Leases, if any

	
 Tenant/Leasing Materials

	
Tenant Leases and occupancy agreements, to be available on site

	
Tenant Screening process and metrics

	
Leasing/Marketing Materials

	
Property Pictures

	
Standard form of apartment lease

	
 Third Party Reports/Site Plans

	
Engineering reports, if available

	
Environmental reports prepared for the Seller, including asbestos and environmental audits and analyses

	
ALTA/ACSM As-Built Survey

	
Site Plan with unit locations identified

	
Appraisals

	
Zoning Report

	
 Permits, Licenses & Other Local Government Inspections

	
Copies of permits and licenses related to or affecting the Property

	
Certificate of Occupancy, if any

	
City and Fire Inspection Reports, if any

	
 Legal Documents

	
Existing title policy and all documents and instruments referenced therein

	
List of all pending or threatened litigation relating to Seller or the Property

	
Master Lease, if any

	
Property Entity Docs, including IRS Form SS-4s for the IN/OH Property Owners

	
Existing Loan Documentation

 

 

			
	
 
	
 
	
 

17

 

 

 

EXHIBIT I

Inventory of Personal Property

 

 

			
	
 
	
 
	
 

1

 

EXHIBIT J

 

[INTENTIONALLY OMITTED]

 

			
	
 
	
 
	
 

1

 

EXHIBIT K

 

Form of Assignment and Assumption of Limited Liability Company Interest 

 

 [___________________], LLC

THIS ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP INTEREST ("Assignment") is entered into as of __________, 201_ by and between HPI REAL ESTATE OPPORTUNITY FUND III, LLC, a Delaware limited liability company (“Transferor"), and [_______________], a ____________________ ("Transferee").

RECITALS:

A.[__________________], a [______________] limited liability company (the "LLC"), was formed pursuant to a Limited Liability Company Agreement dated as of _______, 20__ (the "LLC Agreement"), executed by Transferor, as the sole member of the LLC.

B.Transferor desires to assign and transfer one hundred percent (100%) of its [Limited Liability Company Interest] (as such term is defined in the LLC Agreement) in the LLC, as the sole Member (as such term is defined in the LLC Agreement) in the LLC to Transferee and to admit Transferee as a Member of the LLC (the "Transaction").

C.Pursuant to Section [__] of the LLC Agreement, Transferee desires to designate a different principal office for the LLC.

D.Transferee desires to amend, correct, and/or modify certain definitions, references, provisions and/or exhibits to the LLC Agreement.

AGREEMENT:

NOW, THEREFORE, in consideration of the mutual covenants set forth in this Assignment and the LLC Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.Definitions.  All terms used herein which have their initial letter capitalized which have been specially defined in the LLC Agreement shall have the same meaning herein as set forth in the LLC Agreement, unless expressly provided otherwise herein.

2.Assignment.  Transferor does hereby assign and transfer unto Transferee one hundred percent (100%) of its Limited Liability Company Interest in the LLC, which Limited Liability Company Interest constitutes the entire ownership interest outstanding in the LLC.  By execution of this Assignment, Transferee intends to become the sole Member of the LLC.  Transferee hereby accepts the assignment and transfer of such Limited Liability Company Interest in the LLC from Transferor, and such Transferee hereby assumes all obligations, responsibilities, duties, liabilities and costs of a Member accruing or becoming due from and after the date hereof.  Transferee is hereby admitted as a Member with respect to the Limited Liability Company Interest so transferred, and from and after the execution and delivery of this Assignment, Transferee shall be the sole Member of the LLC under the LLC Agreement.   

3.Principal Office.  Pursuant to Section [__] of the LLC Agreement, the Principal Office of the LLC is hereby relocated to the following address: [_____________________].

			
	
 
	
 
	
 

1

 

4.Mutual Indemnification.  Transferor shall indemnify and hold Transferee harmless from and against any and all damages, claims, liabilities, costs (including reasonable attorney’s fees), expenses and causes of action which may arise out of the LLC or the Limited Liability Company Interests in connection with events occurring prior to the date hereof, for nine (9) months.  Transferee shall indemnify and hold Transferor harmless from and against any and all damages, claims, liabilities, costs (including reasonable attorney’s fees), expenses and causes of action which may arise out of the LLC or the Limited Liability Company Interests on or after the date hereof.  

5.Counterparts.  To facilitate execution, this Assignment may be executed in as many counterparts as may be convenient or required.  It shall not be necessary that the signature or acknowledgment of, or on behalf of, each party, or that the signature of all persons required to bind any party, or the acknowledgment of such party, appear on each counterpart.  All counterparts shall collectively constitute a single instrument.  It shall not be necessary in making proof of this Assignment to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, and the respective acknowledgments of, each of the parties hereto.  Any signature or acknowledgment page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures or acknowledgments thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature or acknowledgment pages.

6.Severability.  Any provision of this Assignment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

7.Successors and Assigns.  All covenants and agreements contained herein shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and assigns.  

11.No Amendments.  Except as amended hereby, the LLC Agreement shall not be amended and shall remain in full force and effect in accordance with its terms.

12.Governing Law.  THIS ASSIGNMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, INCLUDING ALL MEANS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

[SIGNATURES TO APPEAR ON THE FOLLOWING PAGES]

			
	
 
	
 
	
 

2

 

 

EXECUTED as of the date first above written.

 

TRANSFEROR:

 

 

HPI REAL ESTATE OPPORTUNITY FUND III, LLC, a Delaware limited liability company

 

 

By: ___________________________

Name: 

Title:   

 

 

TRANSFEREE:

 

 

[_________________________________], 

a [___________________]

 

 

By:

Name:

Its:

 

 

 

			
	
 
	
 
	
 

3

 

EXHIBIT L

Form of Survey Affidavit of No Change

 

[ATTACHED]

 

 

 

			
	
 
	
 
	
 

1

 SURVEY AFFIDAVIT OF NO CHANGE

File No. 

 

 

 

THE UNDERSIGNED, having been duly sworn on oath, makes the following representations to and for the benefit of Land Services USA, Inc. and its underwriter (the “Company”):

	
1.
	
That the undersigned owner (“Owner”) is the owner of the property commonly known as , and more fully described on Commitment File No. _________ issued by Land Services USA, Inc., (the “Property”).
	
 

	
2.
	
That attached hereto and made a part of this affidavit is An ALTA/ACSM Land Title Survey (the “Survey”) of the Property prepared on Owner’s behalf by _________________ dated __________________ which Owner obtained at the time of their purchase or last refinance of the property.
	
 

	
3.
	
That the Survey as presented has not been altered in any detail since its completion and delivery by the registered surveyor or professional land surveyors;
	
 

	
4.
	
That, to the knowledge of the undersigned, there have been no physical changes to the improvements on the Property that would create a variation from the improvements as shown on the Survey;
	
 

	
5.
	
That the Owner has not built or relocated any fence, fences, driveways, walkways, buildings or accessory structure on the Property since the date of the Survey;
	
 

	
6.
	
That, to the knowledge of the undersigned, adjoining property owners have not built or relocated any fence, fences, driveways, walkways, buildings or accessory structures along or adjacent to the Property since the date of the Survey;
	
 

	
7.
	
That no party is adversely holding or occupying any portion of the Property;
	
 

	
8.
	
That no party has made any claim against any portion of the Property or is maintaining that said party owns any portion of the Property;
	
 

	
9.
	
That there have been no physical changes in the boundary lines of the Property as shown on the Survey.
	
 

 

 

THIS AFFIDAVIT IS GIVE TO INDUCE LAND SERVICES USA, INC., FOR ITSELF AND ITS UNDERWRITER (the “Insurer”) TO ISSUE ITS COMMITMENT OF TITLE INSURANCE AND ITS FINAL LENDER’S POLICY OF TITLE INSURANCE WITHOUT A SURVEY EXCEPTION AND WITHOUT THE NECESSITY OF THE OWNER(S) OBTAINING A NEW SURVEY. 

 

Owner hereby jointly and severally agree to indemnify and hold Company harmless of and from any and all loss, cost, damage, and expense of every kind, including attorney's fees, which said Company shall or may suffer or incur or become liable for under its said policy or policies directly or indirectly, due to its reliance on the accuracy of the foregoing statements or in connection with its enforcement of its rights under this agreement.

 

				
	
Sworn, subscribed and acknowledged before me this ____ day of ______________, 20__
	
 
	
 
	
,

	
 
	
 
	
 

	
 
	
 
	
By:
	
 

	
Notary Public
	
 
	
 
	
Name:

	
My Commission expires:
	
 
	
 
	
Title:

	

	
 
	
 

 

 

			
	
/-

. 
	
-2-
	
 

 

 

 

EXHIBIT M

Form of Non-Imputation Affidavit

 

[ATTACHED]

 

			
	
 
	
 
	
 

1

 

Non-Imputation Affidavit - LLC

[This Non-Imputation Affidavit is used in membership acquisition transactions wherein an owner's title insurance policy is to be issued to the LLC subject to acquisition and the purchaser of its membership interest.]

Non-Imputation Affidavit - LLC

State of ]

]ss

County of ]

The undersigned, after being first duly sworn, states as follows:

	
 
	
1.
	
The undersigned are all of the members of ______________________, a ___________________ limited liability company, hereinafter referred to as "the LLC," which owns the properties described in Exhibit A hereof, hereinafter referred to as "the Properties."

	
 
	
2.
	
The undersigned have requested that First American Title Insurance Company, hereinafter referred to as "First American" include a non-imputation endorsement as part of a title insurance policy to be issued in connection with the acquisition of some or all of the membership interest of the LLC by ____________________________, hereinafter referred to as "the Membership Purchaser." The purpose of the non-imputation endorsement is to assure the LLC and the Membership Purchaser that First American will not deny liability under the title insurance policy on the grounds that the LLC and/or the Membership Purchaser had knowledge of any matter solely by reason of notice thereof being imputed to it through the undersigned by operation of law.

	
 
	
3.
	
To the best of the knowledge of the undersigned, there exists no unrecorded deed, land contract, lease, option to purchase, mortgage, deed of trust, judgment lien, tax lien, agreement or other instrument or encumbrance affecting title to any of the Properties, other than the following:

[List matters here or insert the word "none."]

	
 
	
4.
	
Neither the LLC nor its members, managers or officers have done anything to create any deed, land contract, lease, option to purchase, mortgage, deed of trust, judgment lien, tax lien, agreement or other instrument or encumbrance affecting title to any of the Properties, other than the following:

[List matters here or insert the word "none."]

			
	
 
	
 
	
 

2

 

	
 
	
5.
	
There exists no litigation nor threatened litigation against the LLC which purports to affect the Properties.

	
 
	
6.
	
An independent examination of the business records of the LLC would reveal that the records are complete and in good order and would not disclose or suggest the existence of any unrecorded legal or equitable interests in the Properties.

	
 
	
7.
	
The LLC has sufficient assets, excluding the value of the Properties, to satisfy all unrecorded debts, demands or equities created, suffered or permitted by the LLC and the transaction pursuant to which the Membership Purchaser acquires all or part of the membership interest of the LLC will not render the LLC insolvent nor is such membership transfer a fraudulent transfer under the bankruptcy laws of the United States or any similar creditors' rights law.

	
 
	
8.
	
The undersigned make this affidavit for the purpose of inducing First American to include the non-imputation endorsement as described in Paragraph 2 with the knowledge that First American would not issue such non-imputation endorsement without having first received this affidavit and will rely on the assurances and representations made herein.

	
 
	
9.
	
That the undersigned acknowledge that they have read the foregoing and fully understand the legal ramifications of any misrepresentation and/or untrue statements made herein and hereby indemnify and hold First American harmless against any liability occasioned by reason of its reliance on the statements made herein.

Each of the undersigned certify under penalty of perjury that the foregoing is true and correct.

______________________________ ______________________________

Name Date Name Date

______________________________ ______________________________

Name Date Name Date

______________________________ ______________________________

Name Date Name Date

______________________________ ______________________________

Name Date Name Date

Subscribed and sworn to before me this _____ day of ______________, 19_____.

______________________________

Notary Public

			
	
 
	
 
	
 

3

 

My Commission Expires:__________________

			
	
 
	
 
	
 

4

 

EXHIBIT N

Form of Auditor Representation Letter 

 

[Seller’s Letterhead]

 

 

[Date] 

 

CohnReznick LLP

1900 Avenue of the Stars

28th Floor

Los Angeles, CA  90067

 

This representation letter is provided in connection with your audits of the Statement of Revenue and Certain Expenses (the “combined financial statement”) of the nine multi-family properties located in Georgia, Indiana, Louisiana, North Carolina, Ohio and South Carolina (the “HPI Portfolio”), for the year ended December 31, 2016, and the related notes to the combined financial statement, for the purpose of expressing an opinion as to whether the combined financial statement presents fairly, in all material respects, the results of operations of the HPI Portfolio in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for the purpose of complying with Rule 3-14 of Regulation S-X of the Securities and Exchange Commission. We confirm that we are responsible for the fair presentation in the combined financial statement of the results of operations in conformity with U.S. GAAP.

 

Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors.

 

We confirm, to the best of our knowledge and belief, as of the date of this letter, the following representations made to you during your audit.

Financial Statements

	
 
	
1.
	
We have made available to you all financial records and related data.

	
 
	
2.
	
We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the combined financial statement that are free from material misstatement, whether due to fraud or error.

	
 
	
3.
	
We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.

	
 
	
4.
	
Significant assumptions we used in making accounting estimates are reasonable. 

	
 
	
5.
	
Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP.

	
 
	
6.
	
All events subsequent to the date of the combined financial statement and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed.

			
	
 
	
 
	
 

1

 

	
 
	
7.
	
The effects of all known actual or possible litigation, claims, and assessments have been accounted for and disclosed in accordance with U.S. GAAP.

	
 
	
8.
	
Material concentrations have been properly disclosed in accordance with U.S. GAAP.

	
 
	
9.
	
Guarantees, whether written or oral, under which the company is contingently liable, have been properly recorded or disclosed in accordance with U.S. GAAP.

Information Provided

	
 
	
10.
	
We have provided you with:

	
 
	
o
	
Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the combined financial statement, such as records, documentation, and other matters.

	
 
	
o
	
Additional information that you have requested from us for the purpose of the audit.

	
 
	
o
	
Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.

	
 
	
11.
	
All material transactions have been recorded in the accounting records and are reflected in the combined financial statement.

	
 
	
12.
	
We have disclosed to you the results of our assessment of the risk that the combined financial statement may be materially misstated as a result of fraud.

	
 
	
13.
	
There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices pertaining to the HPI Portfolio.

	
 
	
14.
	
We have no knowledge of any fraud or suspected fraud that affects the entity and involves:

	
 
	
o
	
Management,

	
 
	
o
	
Employees who have significant roles in internal control, or

	
 
	
o
	
Others where the fraud could have a material effect on the financial statements.

	
 
	
15.
	
We have no knowledge of any allegations of fraud or suspected fraud affecting the entity’s combined financial statement communicated by employees, former employees, analysts, regulators, or others.

	
 
	
16.
	
We have no knowledge of any instances of noncompliance or suspected noncompliance with laws and regulations whose effects should be considered when preparing the combined financial statement.

	
 
	
17.
	
We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects should be considered when preparing the combined financial statement.

	
 
	
18.
	
We have disclosed to you the identity of the entity’s related parties and all the related party relationships and transactions of which we are aware.

	
 
	
19.
	
The company has satisfactory title to all owned assets as of the date of the combined financial statement, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral.

 

			
	
 
	
 
	
 

2

 

	
	
	
 

 

  

Bart D. Giustina, CFO

 

	
 

  

Steve Montville, Controller

 

	
	
 

	
 

 

iii 

 

			
	
 
	
 
	
 

3

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