Document:

Exhibit 10.11

 

PURCHASE
AND SALE AGREEMENT

(Bell
Hillsboro Village Apartments – Nashville, TN)

 

This PURCHASE AND SALE
AGREEMENT (this “Agreement”) is made and entered into as of the 26th day of July, 2013, by and between Bell
BR Hillsboro Village JV, LLC, a Delaware limited liability company (“Seller”), and Nicol Investment Company,
LLC, a Delaware limited liability company (“Purchaser”). The date on which both Seller and Purchaser shall execute
and deliver this Agreement and shall exchange (by email or otherwise) a copy of the signed Agreement with each other is herein
called the “Effective Date”.

 

1.PURCHASE
AND SALE OF PROPERTY.

 

On the terms and conditions
stated in this Agreement, Seller hereby agrees to sell to Purchaser and Purchaser hereby agrees to purchase from Seller all of
the following described property:

 

1.1Land.
Fee simple title in and to all of that certain tract of land situated in Davidson County, Tennessee known as “Bell Hillsboro
Village Apartments” and described more particularly in Exhibit A attached hereto and incorporated herein by reference,
together with all rights and appurtenances pertaining to such land, including, without limitation, all of the Seller’s right,
title and interest, if any, in and to (i) all adjacent strips, streets, roads, alleys and rights-of-way, public or private,
open or proposed, (ii) all easements, privileges, and hereditaments, whether or not of record, and (iii) all access,
air, water, riparian, development, utility, and solar rights and utility rights and wastewater, fresh water, storm sewer or other
utilities capacity or service commitments and allocations (collectively, the “Land”).

 

1.2Improvements.
The improvements and structures owned by Seller and located on the Land in their condition as of the Effective Date, subject to
ordinary wear and tear, casualty and condemnation (provided that if a casualty or condemnation occurs, the provisions of Section
10 shall apply) (the “Improvements”).

 

1.3Personal
Property. All of Seller’s right, title and interest in and to the following: (a) mechanical systems, fixtures, furniture
and equipment comprising a part of or attached to or located upon the Improvements as of the Effective Date, (b) maintenance equipment
and tools owned by Seller and used exclusively in connection with the Improvements, (c) pylons and other signs located at the Land
and Improvements, subject to Section 1.7 below, (d) to the extent owned by Seller, Seller’s interest in the telephone numbers,
Yellow Pages listings, internet web sites and domain names, and any office equipment, stationery or other materials printed with
the name of Bell Hillsboro Village Apartments, office supplies, resident leases and records, any policy and procedures manuals,
and keys related to the Property, (e) any transferable interests in any leased equipment used in connection with the Property (subject
to Purchaser’s right to elect whether to accept or reject an assignment of any equipment contract or lease, other than the
tenant Leases referenced below, or have Seller terminate the equipment contract or lease as of Closing). and (f) other tangible
personal property of every kind and character owned by Seller and located in or on or used exclusively in connection with the Land
or Improvements or the operations thereon, but (i) only to the extent assignable by law, and (ii) excluding Seller’s key
track system, computer systems software, corporate licenses and management and financial reporting systems and software (collectively,
the “Personal Property”).

 

    	 

    	 

    

 

1.4Leases.
Seller’s interest in leases, rental agreements and other occupancy agreements and all amendments thereto with tenants occupying
all or any portion of the Improvements (collectively, the “Leases”), a list of which is attached hereto as Schedule
1.4, and any guaranties applicable thereto and all refundable security deposits, if any, held by Seller in connection with
the Leases.

 

1.5Contracts.
Subject to Sections 5.4 and 7.2 hereof, Seller’s interest in all contract rights related to the Land, Improvements, Personal
Property or Leases, to the extent assignable, including, without limitation, Seller’s interest in the following, to the extent
the same exist and are assignable: maintenance, construction, commission, architectural, parking, supply or service contracts,
warranties, guarantees and bonds and other agreements related to the Improvements, Personal Property, or Leases that will remain
in existence after Closing (as defined in Section 9.1 herein) (collectively, the “Service Contracts”), a list
of which is attached hereto as Schedule 1.5. 

 

1.6Permits.
Seller’s interest in all permits, licenses, certificates of occupancy, and governmental approvals that relate to the Land,
Improvements, Personal Property, Leases or Service Contracts, to the extent assignable (collectively, the “Permits”).

 

1.7Goodwill
and Intellectual Property Rights. All right, title and interest (including goodwill) of Seller to the extent assignable (the
“Goodwill and Intellectual Property Rights”). Notwithstanding the foregoing, Purchaser shall not be entitled
to any right, title or interest of Seller or Bell Partners Inc. in the trade names and trademarks containing the names “Bell”
“Bell Partners” or “Bell Apartment Living” (collectively, the “Trade Names”). Subject to the
foregoing, Purchaser, at its cost, shall replace all signage that contains the Trade Names within thirty (30) days after the Closing
or as soon thereafter as reasonably practicable unless Purchaser and Bell Partners Inc. agree to the use of such Trade Names pursuant
to a separate agreement. The provisions of this section shall survive the Closing (and not be merged therein) or any earlier termination
of this Agreement.

 

1.8Construction
Plans and Specifications. To the extent available and assignable, all construction plans and specifications relating to the
Improvements (the “Plans”).

 

1.9Warranties.
All guaranties, warranties, and payment and performance bonds relating to the Property, to the extent transferable and owned by
Seller (the “Warranties”).

 

1.10Other Rights.
All right, title and interest of Seller in and to all other rights owned by Seller and necessary to or used exclusively in connection
with the ownership, maintenance or operation of the items set forth in Sections 1.1 - 1.9 above, if any, including without limitation
all other rights, privileges, and appurtenances owned by Seller and directly related to the ownership, use or operation of the
Land and/or the Improvements, but only to the extent assignable by law (the “Other Rights”).

 

The Land, the Improvements,
the Personal Property, the Leases, the Warranties, the Service Contracts, the Permits, the Goodwill and Intellectual Property Rights,
the Plans and the Other Rights are collectively referred to herein as the “Property”.

 

2.PURCHASE
PRICE AND DEPOSIT. 

 

2.1Purchase
Price. The purchase price (the “Purchase Price”) for the Property will be the sum of $44,000,000.00, subject
to the Loan Assumption set forth in Section 3.2 below, and subject to any readjustment set forth in Section 9 below.

 

    	 

    	 

    

 

2.2Deposit.

 

2.2.1Within two (2)
Business Days (as defined in Section 15.10) of the Effective Date, Purchaser shall deliver by wire delivery of funds through the
Federal Reserve System to an account designated in writing by Fidelity National Title Company (“Title Company”),
Attention: Dee Goodrich (the “Escrow Agent”), whose contact information is stated
in Section 13.3 below, the sum of $450,000.00 in the form of cash or other immediately available funds (together with all
interest thereon, the “Initial Deposit”), of which $225,000.00 is deemed non-refundable and referred to herein
as “Earnest Money”. Purchaser shall deliver by wire delivery of funds through the Federal Reserve System
to an account designated in writing by Escrow Agent an additional sum of $550,000.00 within 2 Business
Days following the expiration of the Inspection Period (as defined in Section 5.1) as an additional deposit (together with all
interest thereon, the “Additional Deposit”), provided Purchaser has not terminated this Agreement pursuant to
Article 5. The Initial Deposit and the Additional Deposit and the Extension Deposit (as defined in Section 9.1 below), if any,
together with all interest earned thereon are herein collectively referred to as the “Deposit;” provided,
notwithstanding any other provision of this Agreement, the Deposit (including Earnest Money) will be fully refundable to Purchaser
in the event that Closing does not occur because of Seller’s refusal to close the sale to Purchaser, and Purchaser is not
in default. 

 

2.2.2Prior
to making the Deposit, Seller, Purchaser and the Escrow Agent shall enter into an escrow agreement substantially in the form of
Exhibit B attached hereto (the “Escrow Agreement”). Notwithstanding anything contained in this Agreement
to the contrary, any reference to a return of the Deposit to Purchaser shall mean the Deposit amount less the non-refundable Earnest
Money, unless expressly stated otherwise that the full amount of the Deposit is refundable to Purchaser.

 

2.2.3Escrow
Agent shall place the Deposit in an interest-bearing escrow account at a federally insured commercial bank acceptable to both Seller
and Purchaser, such interest shall accrue to Purchaser’s benefit. The Escrow Agent shall hold the Deposit in accordance with
this Agreement and the Escrow Agreement. At Closing, Escrow Agent shall credit the Deposit against the Purchase Price. 

 

2.3Loan Assumption.

 

2.3.1The Purchase
Price will be paid in part by Purchaser’s assumption (the “Loan Assumption”) of that certain existing loan secured
by the Property from Fannie Mae (as assigned by CBRE Multifamily Capital Inc.) (“Existing Lender”), dated September
30, 2010, evidenced by the loan documents more particularly set forth on Schedule 2.3 annexed hereto (the “Loan Documents”),
with an original principal balance of $23,185,000.00, to be adjusted and confirmed at Closing (the “Loan”).

 

2.3.2Within ten (10)
Business Days after the Effective Date, Purchaser shall submit a written application to Existing Lender requesting approval of
the Loan Assumption (and shall provide Seller with a copy thereof), together with application fees and deposits required by Existing
Lender in connection with such request or later requests. Each of Seller and Purchaser will submit to Existing Lender within such
time period all documents in their actual possession that the application lists as being required by Existing Lender in order to
commence its review of the application. The application to Existing Lender shall include the name of Purchaser’s proposed
non-recourse guarantor and a request for release of all existing non-recourse guarantors for matters accruing after the Closing
Date. Each of Seller and Purchaser shall respond within two (2) business days (or such longer time period as may be reasonably
necessary to locate or prepare the response to the Existing Lender) to any additional information requests of Existing Lender and
shall diligently provide responses or information/documentation as requested as soon as possible after receiving any such request
from Existing Lender. If the Loan Assumption is approved contingent on any of the following conditions, Purchaser shall have the
option of terminating this Agreement and receiving a refund of the Deposit, less the non-refundable Earnest Money: (i) a material
increase in the interest rate currently stated in the Existing Loan Documents, (ii) a material requirement to accelerate the pay
down of the principal balance of the Loan other than as currently stated in the Existing Loan Documents, (iii) a requirement that
the Purchaser pay or establish material escrows or expenditures other than as currently stated in the Existing Loan Documents,
and/or (iv) a requirement that the Purchaser’s non-recourse guarantor agree to recourse provisions other than those currently
stated in the Existing Loan Documents or Existing Lender’s updated form of typical “bad boy” carve-outs. If the
Loan Assumption is denied or if Purchaser has not received Existing Lender's approval of the Loan Assumption prior to expiration
of the Loan Contingency Period, this Agreement shall terminate, in which case the Deposit, less the non-refundable Earnest Money,
shall be returned to the Purchaser. As used in this Section 2.3.2, “currently stated in the Existing Loan Documents”
shall mean as such loan terms appear in the Existing Loan Documents, as may be modified by mutual agreement of Purchaser and Existing
Lender prior to the expiration of the Inspection Period. Seller shall cooperate with Purchaser throughout the Loan Assumption process;
Purchaser acknowledges that it shall be required to submit to Existing Lender organizational documents, opinions of counsel and
other instruments as part of the Loan Assumption process. The term “Loan Contingency Period,” as used
herein, shall mean the period commencing on the Effective Date and ending at 5:00 p.m. Eastern Standard Time on that date which
is two hundred (200) days following the Effective Date.

 

    	 

    	 

    

 

3.TITLE
AND SURVEY.

 

3.1State
of Title to be Conveyed. Title to the Property shall be fee simple and insurable by the Escrow Agent (in such capacity, the
“Title Company”). Title to the Property shall be conveyed to Purchaser, free and clear of any and all liens,
mortgages, deeds of trust, security interests and other encumbrances, except for (i) the Loan; (ii) those items approved or deemed
approved by Purchaser pursuant to Section 3.2, (iii) the lien of real estate taxes not yet due and payable, and (iv) the rights
of tenants in possession under the Leases. The items referred to in clauses (i), (ii) (iii) and
(iv) above and those matters deemed to be Permitted Exceptions pursuant to Section 3.2 below are hereinafter referred to as the
“Permitted Exceptions.”

 

3.2Title
Commitment and Survey. Purchaser will promptly obtain, after the Effective Date, a current title commitment for the Property
(“Title Commitment”) from the Title Company (Fidelity National Title Insurance Company, attention: Justin VanderVeen,
whose contact information is stated in Section 13.3), together with copies of all instruments referred to in said title
commitment. Upon or prior to the Effective Date, Seller will provide a copy of the most current ALTA survey in Seller’s possession
with respect to the Property (“Existing Survey”), pursuant to Section 4. On or before August 16, 2013, or five
(5) business days after receipt of both the Title Commitment and Existing Survey, whichever is later, Purchaser shall notify Seller
in writing of any title matters listed in the title commitment or matters depicted or otherwise contained on, or omitted from,
the Existing Survey (if any) or on any updated survey, which shall be obtained at the sole option and expense of Purchaser, of
which Purchaser disapproves (the “Title Objections”), except that Purchaser shall not object to liens for real
estate taxes not yet due and payable and shall not be required to object to voluntary mortgage liens, security interests,
judgment liens, Internal Revenue Service liens, property tax liens for delinquent taxes or mechanics liens placed or caused by
Seller’s actions or inactions (“Monetary Encumbrances”), it being understood
and agreed by the parties that, with the exception of the Loan, the Seller shall be obligated to satisfy such Monetary Encumbrances,
or cause such exceptions to be removed from the Title Policy by Closing. Any matters set forth in such title commitment or depicted
on such survey to which Purchaser does not object as provided above (other than those matters to which it is not required to object
as provided above) shall be deemed to be Permitted Exceptions. Seller shall notify Purchaser in writing within five (5) days after
Seller’s receipt of Purchaser’s notice of Title Objections whether it will take all action necessary to remove from
title such disapproved matters, or any of them, eliminated, cured, removed of record from title by bonding, or otherwise, or affirmatively
insured over by the Title Company at or prior to the Closing (a “Seller’s Cure”). If Seller fails to so
notify Purchaser that it is willing to effect a Seller’s Cure, then Seller shall be deemed to have elected not to take such
action, and if Purchaser does not exercise its right to terminate this Agreement by the expiration of the Inspection Period pursuant
to Article 5, then such matters shall be deemed to be Permitted Exceptions. If Purchaser exercises
its right to terminate this Agreement as a result of Seller’s election (or deemed election) not to effectuate a Seller’s
Cure of the Title Objections, then Escrow Agent shall return the Deposit, less the non-refundable Earnest Money, to Purchaser,
and the parties will have no further rights or obligations under this Agreement, except for any obligations that expressly survive
termination. 

 

    	 

    	 

    

 

3.3Title Objections
After the Inspection Period. If and to the extent any easements, declarations, plats or other recorded instruments affecting
the Property, or any other matter affecting title, shall occur or be recorded after the end of the Inspection Period, then to the
extent any of the same shall materially and adversely affect the operation currently conducted at, or the value of, the Property,
Purchaser may notify Seller in writing of any of the foregoing of which Purchaser disapproves (the “New Title Objections”).
Seller shall notify Purchaser in writing within five (5) Business Days after Seller’s receipt of Purchaser’s notice
of any New Title Objection as to whether it will take any action necessary to effect a Seller’s Cure with respect to any
such New Title Objection. If Seller fails to so notify Purchaser that it is willing to effect a Seller’s Cure of any such
New Title Objection, then Seller shall be deemed to have elected not to take such action, and if Purchaser does not exercise its
rights to terminate this Agreement by the expiration of the earlier of (i) five (5) Business Days after the expiration of Seller’s
period to elect to cure or not to cure such matters and (ii) the Closing Date, then any such New Title Objection shall be deemed
to be a Permitted Exception. If Purchaser elects to terminate this Agreement as a result of Seller’s election (or deemed
election) not to cure any New Title Objection, then Escrow Agent shall return the Deposit, less the non-refundable Earnest Money,
to Purchaser, and the parties will have no further rights or obligations under this Agreement, except for any obligations that
expressly survive termination.

 

3.4
Failure to Cure Title Objections. If Seller indicates that it will effect a Seller’s Cure with respect to a Title
Objection or a New Title Objection pursuant to Section 3.2 or 3.3, respectively, prior to or at the Closing, but fails to do so,
Purchaser shall have the right, at its option, to terminate this Agreement by giving written notice of such election to Seller
on or prior to the Closing Date. Upon the giving of such notice by Purchaser to Seller, this Agreement shall terminate and the
Deposit shall be returned to Purchaser, and, notwithstanding anything in this Agreement to the contrary, neither Seller nor Purchaser
shall have any further rights or obligations under this Agreement except for any obligations that expressly survive termination.

 

    	 

    	 

    

 

4.PROPERTY
INFORMATION. 

 

Seller
has delivered or otherwise made available to Purchaser its most current existing Phase I environmental survey of the Property,
its most current existing ALTA survey of the Property, and copies of the other due diligence materials and items specified on Schedule
4 attached hereto that are in Seller’s possession or control (collectively, the “Property Information”).
Purchaser shall keep such Property Information confidential pursuant to Section 15.11 hereof (to the
extent that the Property Information is confidential and is identified as being confidential at the time of delivery to Purchaser).
If Closing does not occur for any reason whatsoever, Purchaser shall promptly return all Property Information to Seller. In
providing the Property Information to Purchaser, Seller makes no representation or warranty, express, written, oral, statutory,
or implied, and all such representations and warranties are hereby expressly excluded and disclaimed except as provided in Article
6 herein.

 

5.INSPECTION
PERIOD AND ACCESS.

 

5.1Inspection
Period. Commencing on July 22, 2013 and ending on the earlier of (i) August 26, 2013 or (ii) the date Purchaser notifies Seller
in writing that Purchaser elects to end the Inspection Period (the “Inspection Period”), Purchaser and
Purchaser’s agents, contractors, engineers, surveyors, attorneys, accountants, advisors, lenders, affiliates, consultants,
shareholders, investors and employees (collectively, “Consultants”) shall have the right, upon not less than
forty-eight (48) hours prior notice to Seller, to enter the Property for the sole purpose of conducting
such investigations, inspections, audits, analyses, surveys, tests, examinations, studies, and appraisals of the Property (provided,
any intrusive testing shall require Seller’s prior written consent), and to examine all applicable books and records relating
to the Property and its operation and maintenance, as Purchaser deems necessary or desirable, at Purchaser’s sole cost and
expense, in order to determine if the Property is suitable for Purchaser’s purposes. Seller may have a representative
present during all inspections conducted at the Property by or on behalf of Purchaser. At no time shall Purchaser talk to tenants
at the Property without the consent of Seller, which consent may be withheld in Seller’s sole discretion, and may be conditioned
upon a representative of Seller being present for all tenant contacts.

 

5.2Access.
Subject to the notice requirements in Section 5.1, Seller will provide Purchaser and Purchaser’s Consultants access to the
Property and with all data of relevance to the Property, excluding any proprietary information of Bell Partners Inc. Purchaser
and its Consultants will conduct any such investigations, inspections, audits, analyses, surveys, tests, examinations, studies,
and appraisals (each a “Review” and collectively the “Reviews”) only on Business Days, during
normal business hours, and will use reasonable efforts to minimize interference with Seller’s operations at the Property.
Purchaser shall use its best efforts not to alter or disturb the Property or the tenants of the Property and Purchaser shall not
permit any mechanics’ liens to be filed against the Property. Purchaser may not conduct any Phase II environmental tests
or other intrusive samplings or drillings without prior written consent of Seller.

 

5.3Restoration
and Indemnification. Purchaser will promptly restore any physical damage to the Property caused as a result of Purchaser or
Purchaser’s Consultant’s access to the Property (but Purchaser will not be liable to Seller or indemnify Seller against
the “economic” consequences of the discover of any condition of the Property as a result of the Reviews). Purchaser
further agrees to indemnify and hold Seller and Seller’s affiliates, managers, members, employees, officers, directors, trustees,
representatives and agents (collectively, including Seller, “Seller’s Indemnified Parties”) harmless from
and against any and all claims, causes of action, attorneys fees and costs, damages, costs, injuries and liabilities resulting
from the activities of Purchaser and/or Purchaser’s Consultants at or on the Property (collectively, “Losses”).
Notwithstanding anything set forth herein to the contrary, the restoration and indemnification obligations
of Purchaser in this Section 5.3 shall survive Closing or the earlier termination, for any reason, of this Agreement.

 

    	 

    	 

    

 

5.4Service
Contracts. Notwithstanding anything contained herein to the contrary, Purchaser shall notify Seller in writing prior
to the expiration of the Inspection Period which, if any, of the Service Contracts Purchaser does not wish to assume at Closing.
Seller shall terminate at Closing those Service Contracts specified in Purchaser’s notice, except Seller shall have no obligation
to terminate, and Purchaser shall accept and assume in accordance with their terms all Service Contracts (including those specified
in Purchaser’s notice) which cannot be terminated by Seller (i) without cause, (ii) upon thirty (30) days’ notice,
and (iii) without payment of a premium or penalty. Purchaser’s failure to timely deliver notice pursuant to the preceding
sentence shall be deemed Purchaser’s election to accept and assume all of the Service Contracts.

 

5.5Option
to Terminate. In addition to Purchaser’s rights under Section 3.2, Purchaser shall have the right to elect, in its sole
discretion, not to proceed with the transaction contemplated by this Agreement for any reason or for no reason whatsoever at or
before the end of the Inspection Period. Purchaser may terminate this Agreement by giving written notice to Seller by the end of
the Inspection Period in which event Escrow Agent shall return the Deposit, less the non-refundable Earnest Money, to Purchaser,
and the parties will have no further rights or obligations under this Agreement, except for any obligations that expressly survive
termination. If Purchaser fails to notify Seller in writing before 5:00 P.M. Eastern Time, on the last day of the Inspection Period
of its election to terminate, then Purchaser will be deemed to have forever waived its right to terminate pursuant to this Section
5.5 and elected to proceed to Closing hereunder pursuant to the terms and conditions of this Agreement. 

 

5.6Insurance.
From and after the Effective Date, Purchaser shall maintain, and shall cause its third party Consultants to maintain, insurance
in an amount not less than $5,000,000 combined single limit, together with worker’s compensation insurance if required by
state law (and if none is required by state law, it is understood that each such party not having worker’s compensation insurance
shall assume all liability for their employees and Seller shall be indemnified from liability for same), and in form and substance
adequate to insure all liability of Purchaser and its Consultants arising out of access to and inspections and testing at the Property
or any part thereof made on behalf of Purchaser. Purchaser shall deliver proof of the insurance coverage required pursuant to this
Section 5.6 to Seller (in the form of a certificate of insurance) prior to Purchaser’s or Purchaser’s Consultants’
entry onto the Property. The insurance required hereunder shall be issued by insurance companies licensed to do business in the
state where the Property is located with general policyholder’s ratings of at least A- and a financial rating of at least
XI in the most current Best’s Insurance Reports available on the date any such party obtains the insurance policies,
with such policies naming Seller and any mortgage lender as an additional insured party.

 

    	 

    	 

    

 

6.REPRESENTATIONS
AND WARRANTIES.

 

6.1Seller’s
Representations and Warranties. Seller represents and warrants to Purchaser the following as of the Effective Date of this
Agreement, and such representations and warranties will continue until and be deemed remade as of the Closing Date:

 

6.1.1Organization.
Seller is duly formed, validly existing and, if applicable, in good standing under the laws governing its organization, and, is
duly qualified to transact business and, if applicable, in good standing in the state in which the Property is situated.

 

6.1.2Authority/Consent.
Seller is the owner of the fee simple interest in the Property and possesses all requisite power and authority, has taken all actions
required by its organizational documents and applicable law, and has obtained all necessary consents, to execute and deliver this
Agreement and to consummate the transactions contemplated by this Agreement. Each individual executing this Agreement on behalf
of Seller represents and warrants to Purchaser that he or she is duly authorized to do so.

 

6.1.3Litigation.
Except as disclosed on Schedule 6.1.3 attached hereto, no material action, suit or other proceeding (including, but not
limited to, any condemnation action), is pending or, to Seller’s Knowledge, has been threatened that concerns or involves
the Property or Seller’s interest in the Property.

 

6.1.4Bankruptcy.
No bankruptcy, insolvency, reorganization or similar action or proceeding, whether voluntary or involuntary, is pending, or to
Seller’s Knowledge threatened, against Seller.

 

6.1.5Other
Sales Agreements. Seller has not entered into any other contract to sell the Property or any part thereof that is currently
in effect.

 

6.1.6Service
Contracts. To Seller’s Knowledge, except for the contracts referenced on the list of Service Contracts attached hereto
as Schedule 1.5, there are no contracts of construction, employment, management, service, or supply in effect entered into
by Seller that will affect the Property or operations of the Property after Closing. To Seller’s Knowledge, there are no
defaults under any of the Service Contracts.

 

6.1.7Leases.
To Seller’s Knowledge, there are no occupancy agreements, leases, lettings or tenancies in effect to which Seller is a party
that will affect the Property after Closing, except the Leases referenced on the list of Leases attached hereto as Schedule
1.4 and those entered into pursuant to Section 7.1. To Seller’s Knowledge, copies of the Leases that are true, correct
and complete in all material respects, including all material amendments, renewals, modifications, and assignments thereof, have
been made available to Purchaser. Except as set forth in the Leases or the Property Information, neither the Tenants of the Property
nor any other person has any right, option or agreement to purchase the Property, including purchase options or rights of first
refusal to purchase the Property or any portion thereof.

 

6.1.8Assessments.
To Seller’s Knowledge, Seller has received no written notice that there are unpaid and delinquent assessments for public
improvements against the Property or that there is any property that was previously omitted from the tax rolls for which any assessments
will be owed. 

 

    	 

    	 

    

 

6.1.9Notice
Concerning Violation of Law. To Seller’s Knowledge, Seller has not received any written notice or written communication
(each, an “NOV”) from any governmental authority of any violations of any federal, state, county or municipal
laws, ordinances, orders, applicable building or sign codes, or any other regulations and governmental requirements affecting the
Property or any portion thereof (including the conduct of business operations thereon) (“Legal Requirements”),
other than for the notices that are contained in the Property Information provided by Seller.

 

6.1.10No
Uncured Violation of Legal Requirements. To Seller’s Knowledge, all NOV’s concerning the Property have been fully
cured to the satisfaction of the governmental body issuing the NOV, and the Property and the operations being conducted thereon
are not currently in violation of any applicable Legal Requirements. 

 

6.1.11Environmental
Laws. Except with respect to issues, if any, specifically identified and disclosed in any environmental report(s) furnished
to Purchaser by Seller as a part of the Property Information, to Seller’s Knowledge, (i) the Property is not in violation
of any Environmental Law (as hereinafter defined) relating to the Property, (ii) during Seller’s term of ownership, the Property
has not been used for industrial purposes or for the storage, treatment or disposal of hazardous substances (as defined by CERCLA),
other than equipment, cleaning solutions, maintenance materials and other products (collectively, “Permitted Products”)
that are customarily used or stored incidental to the operation and/or maintenance of the Property and that are in ordinary quantities
and have been used in strict compliance with all applicable Environment Law (as defined below), and (iii) no underground storage
tanks have been or are currently located at the Property. As used herein, the term “Environmental Law” means
any law, statute, ordinance, rule, regulation, order or determination of any governmental authority or agency affecting the Property
and pertaining to health or the environment including, but not limited to, the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, 42 U.S.C. Section 9601 et seq. (“CERCLA”), the Federal Resource Conservation
and Recovery Act, 42 U.S.C. Section 6901 et seq. (“RCRA”) the Hazardous Materials
Transportation Act (49 U.S.C. § 1801, et seq.), or any other federal, state, or local law, ordinance or other Legal Requirements
now or hereafter promulgated pursuant to such laws or pertaining to the protection of human health or the environment, including,
without limitation asbestos containing material, presumed asbestos containing materials, Radon, lead based paint or petroleum products
or any fraction thereof.

 

6.1.12Foreign
Person. Seller is not a “foreign person,” “foreign trust” or “foreign corporation” within
the meaning of the United States Foreign Investment in Real Property Tax Act of 1980 and the Internal Revenue Code of 1986, as
subsequently amended.

 

6.1.13Utilities.
To Seller’s Knowledge, Seller has not received any written notice of the termination or impairment of the furnishing of services
to the Property of water, sewer, gas (to the extent required), electric, telephone or such other utility services required for
the operation of the Property.

 

6.1.14Assumption
Loan. To Seller’s Knowledge, Seller is not in default under the Loan.

 

    	 

    	 

    

 

6.1.15No Prohibited
Persons. Neither Seller nor, to Seller’s Knowledge, any of its officers, directors, partners, members, Affiliates or
shareholders is a person or entity: (i) that is listed in the Annex to, or is otherwise subject to the provisions of Executive
Order 13224 issued on September 24, 2001 (“EO13224”); (ii) whose name appears on the United States Treasury
Department’s Office of Foreign Assets Control (“OFAC”) most current list of “Specifically
Designated National and Blocked Persons” (which list may be published from time to time in various mediums including, but
not limited to, the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf); (iii) who commits, threatens to commit or supports “terrorism”,
as that term is defined in EO13224; or (iv) who is otherwise affiliated with any entity or person listed above.

 

6.1.16Survival.
The representations and warranties made by Seller herein shall survive for a period of three hundred and sixty-five (365) days
from the Closing Date.

 

6.2Purchaser’s
Representations and Warranties. Purchaser represents to Seller that, as of the Effective Date of this Agreement: 

 

6.2.1Organization.
Purchaser is duly formed, validly existing and, if applicable, in good standing under the laws of the state of its organization,
and is or will be by the Closing Date duly qualified to transact business and, if applicable, in good standing in the state in
which the Property is situated.

 

6.2.2Authority/Consent.
Purchaser possesses all requisite power and authority, has taken all actions required by its organizational documents and applicable
law, and has obtained all necessary consents, to execute and deliver this Agreement and to consummate the transactions contemplated
in this Agreement. Each individual executing this Agreement on behalf of Purchaser represents and warrants to Seller that he is
duly authorized to do so.

 

6.2.3ERISA Matters.
Purchaser is not: (i) a plan which is subject to Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
as defined in Section 3(3) of ERISA, nor a plan as defined in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended
(each of the foregoing hereinafter referred to collectively as a “Plan”); (ii) a “governmental plan”
as defined in Section 3(32) of ERISA; or (iii) a “party in interest,” as defined in Section 3(14) of ERISA, to a Plan,
except with respect to plans, if any, maintained by Purchaser, nor do the assets of Purchaser constitute “plan assets”
of one or more of such Plans within the meaning of Department of Labor Regulations Section 2510.3-101. Purchaser is acting on its
own behalf and not on account of or for the benefit of any Plan. Purchaser has no present intent to transfer the Property to any
entity, person or Plan which will cause a violation of ERISA. Purchaser shall not assign its interest under this Agreement to any
entity, person or Plan which will cause a violation of ERISA.

 

6.3No
Prohibited Persons. Neither Purchaser nor any of its officers, directors, partners, members, Affiliates or shareholders is
a person or entity: (i) that is listed in the Annex to, or is otherwise subject to the provisions of EO13224; (ii) whose name appears
on OFAC’s most current list of “Specifically Designated National and Blocked Persons” (which list may be published
from time to time in various mediums including, but not limited to, the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf); (iii)
who commits, threatens to commit or supports “terrorism”, as that term is defined in EO13224; or (iv) who is otherwise
affiliated with any entity or person listed above

 

    	 

    	 

    

 

6.4Knowledge.
As used in this Agreement, or in any other agreement, document, certificate or instrument delivered by Seller to Purchaser,
the phrase “to Seller’s Knowledge”, “to the best of Seller’s actual knowledge”,
“to the best of Seller’s Knowledge” or any similar phrase shall mean the actual, not constructive or imputed,
knowledge of Nickolay Bochilo, Vice President of Investments, of Bell Partners Inc. and the regional property manager, Amy Soles
(collectively, “Seller’s Representatives”), who are the persons most likely to know of matters that would
need to be disclosed to Purchaser pursuant to Section 6.1, without any obligation on any of their parts to search or examine any
files, records, books, correspondence and the like, or to make any independent investigation of the matters being represented and
warranted.

 

6.5Seller’s
Duty to Disclose. If prior to the Closing Date Seller obtains actual knowledge (which will have the same meaning as
in Section 6.4) of a matter or condition that would cause any representation made by Seller in this Agreement to be false,
then Seller will promptly notify Purchaser of the matter or condition discovered by or made known to Seller (other than through
Purchaser’s investigations) that would cause such any such representation to be false. As to a representation or warranty
that is made as to matters “to Seller’s Knowledge” (or words of similar effect), Seller will not be deemed in
breach of such representations or warranties, or responsible for correction of any non-compliance with the matter or condition
in question or be liable under any indemnity provision in the Agreement after the Closing Date unless (A) Seller had actual knowledge
on the Closing Date that the representation or warranty was false or the condition was not satisfied, and (B) Seller failed to
disclose promptly to Purchaser the matter or condition that became known to Seller which made the representation or warranty untrue.
This Section 6 will survive the Closing Date as to events, matters or conditions that accrue or occur prior to the Closing
Date.

 

7.COVENANTS
OF SELLER AND PURCHASER PRIOR TO CLOSING.

 

7.1Operation
of Property. From the Effective Date until the Closing, Seller shall continue to operate, maintain and repair the Property
in accordance with the business judgment of Seller and its management company, but at least to the standards followed in the same
geographic area for first class apartment projects. Seller shall cause all liens or property taxes and
assessments imposed on the Property to be paid when due, will not use (or authorize the use of) any hazardous substances on the
Property (other than Permitted Products), and will not further mortgage or further encumber its interest in the Property. Seller
will cooperate in executing any documents and doing such other things as Purchaser may reasonably request in connection with Purchaser’s
due diligence activities; provided, that such actions will be at no out-of-pocket expense to Seller, and neither Seller nor the
Property will be bound if Purchaser does not close the purchase of the Property. 

 

7.2Service
Contracts. At Closing, Seller shall assign to Purchaser, and Purchaser shall assume, the Service Contracts pursuant to the
Blanket Conveyance, Bill of Sale and Assignment referenced in Section 9.2.1.2 unless any such Service Contract is to be terminated
pursuant to Section 5.4 hereof. 

 

7.3Receipt
of Governmental Notices. Prior to Closing, Seller shall provide Purchaser with copies of any written notices that are received
by Seller’s Representatives between the Effective Date and the Closing Date with respect to (i) any special assessments or
proposed increases in the valuation of the Property, (ii) any condemnation or eminent domain proceedings affecting the Property,
or (iii) any violation of any Environmental Law or any zoning, health, fire, safety or other law, regulation or code applicable
to the Property. 

 

    	 

    	 

    

 

7.4Litigation.
Seller will advise Purchaser promptly of any litigation, arbitration proceeding or administrative hearing of which a Seller’s
Representative receives written notice and that concerns or affects the Property in any manner and that is instituted after the
Effective Date except for tenant evictions filed by Seller in the ordinary course of business.

 

7.5Insurance.
Prior to Closing, Seller will maintain Seller’s existing insurance coverage with respect to the Property for the benefit
of Seller and any mortgage lender.

 

7.6Casualty.
Seller will advise Purchaser promptly of any casualty at the Property after the Effective Date.

 

7.7Loan.
From and after the date hereof, Seller shall not modify the Loan. From and after the date hereof, Seller shall not make any non-mandatory
principal prepayments under the Loan unless expressly approved by Purchaser in writing. Seller shall perform in all material
respects its obligations as borrower under the Loan.

 

8.CONDITIONS
PRECEDENT TO CLOSING.

 

8.1Conditions
Precedent to Purchaser’s Obligation to Close. Purchaser’s obligation to purchase the Property is subject to satisfaction
on or before the Closing Date (as such date may be extended as provided herein) of the following conditions, any of which may be
waived in writing by Purchaser in Purchaser’s sole and absolute discretion, provided that if these conditions are not fully
satisfied by the Closing Date, Purchaser may elect to terminate this Agreement, in which event the Deposit, less the non-refundable
Earnest Money, shall be returned to Purchaser:

 

8.1.1Covenants.
Seller shall have performed and observed in all material respects all covenants and obligations of Seller under this Agreement,
including, without limitation, delivery into escrow of any and all documents required pursuant to Section 9.2.

 

8.1.2Representations
and Warranties. All representations and warranties of Seller set forth in this Agreement shall be true and correct in all material
respects as if made on the Closing Date.

 

8.1.3Title.
A final examination of the title to the Land and Improvements shall disclose no title exceptions except for the Permitted Exceptions
and those exceptions for which Seller effects a Seller’s Cure, matters caused by Purchaser or its activities on the Property,
or other matters approved in writing by Purchaser. In addition, the Title Company shall be prepared to issue to Purchaser, at standard
rates, an ALTA (2006) owner’s title insurance policy in the amount of the Purchase Price (the “Title Policy”),
in extended coverage format, insuring that the fee simple estate to the Property is vested in Purchaser subject only to the Permitted
Exceptions, matters caused by Purchaser or its activities on the Property, or other matters approved in writing by Purchaser, free
and clear of any Monetary Encumbrances. Each party shall use all commercially reasonable efforts to cause the Title Company to
issue the Title Policy. Seller will execute and deliver to Title Company and Purchaser an owner’s Lien ALTA Affidavit (on
the Title Company’s standard form).

 

8.1.4Loan Assumption
Approval. Existing Lender’s approval of the Loan Assumption.

 

    	 

    	 

    

 

8.2Conditions
Precedent to Seller’s Obligation to Close. Seller’s obligation to sell the Property is subject to satisfaction,
on or before the Closing Date (as such date may be extended as provided herein) of the following conditions, any of which may be
waived in writing by Seller in Seller’s sole and absolute discretion:

 

8.2.1Covenants.
Purchaser shall have performed and observed in all material respects all covenants and obligations of Purchaser under this Agreement,
including, without limitation, delivery into escrow of any and all documents required pursuant to Section 9.3, and substitute utility
deposits pursuant to Section 9.5.5.

 

8.2.2Representations
and Warranties. All representations and warranties of Purchaser set forth in this Agreement shall be true and correct in all
material respects as if made on the Closing Date.

 

8.2.3Loan Assumption
Approval and Release of Seller and Guarantors. Existing Lender’s approval of the Loan Assumption together with
an agreement of Lender releasing Seller and its guarantor, Bell Partners Inc., Bell Fund III, LLC, Ramin Kamfar and James G. Babb
from all obligations under the Loan arising out of the period from and after Closing in such form as required by Existing Lender.

 

8.3Failure
of a Condition. 

 

8.3.1In
the event that any condition precedent to Closing has not been satisfied on or before the Closing Date, then the party who would
have benefited from having such condition to Closing satisfied (the “Unsatisfied Party”) shall give notice to
the other of the condition or conditions that the Unsatisfied Party asserts are not satisfied. In such notice the Unsatisfied Party
shall also elect either (i) to extend the Closing Date for a reasonable period of time (not to exceed 10 days) to allow the other
party to satisfy the condition, (ii) to terminate this Agreement, whereupon neither party shall have any further rights or obligations
hereunder (other than any obligations of either party that expressly survive termination), and the Unsatisfied Party shall be entitled
to the Deposit, less the non-refundable Earnest Money, except if such failure of a condition is due to a default by one of the
parties, in which event the non-defaulting party shall have those rights and remedies set forth in Article 11 herein, or (iii)
to waive such failed condition in writing delivered to Escrow Agent and the party who failed to meet such condition, and proceed
to Closing as contemplated hereunder.

 

8.3.2If the transaction
contemplated by this Agreement closes, the parties shall be deemed to have waived any and all unmet or unsatisfied conditions,
other than any unmet or unsatisfied conditions arising out of a breach by either party of any of its representations and warranties
hereunder of which the other party has no knowledge as of Closing.

 

9.CLOSING.

 

9.1Closing
Date. The consummation of the transaction contemplated hereby (the “Closing”) will take place via the escrow
services of the Escrow Agent or at such other location upon which Seller and Purchaser mutually agree, on the earlier of
(i) ten (10) days following Purchaser's receipt of Existing Lender's written approval of the Loan Assumption, or (ii) two hundred
ten (210) days following the Effective Date (“Closing Date”). Purchaser shall have the opportunity to
extend the Closing Date for thirty (30) days upon written notice to Seller given no later than the later of (i) thirty (30) days
following expiration of the Inspection Period and (ii) ten days following Existing Lender’s written approval of the Loan
Assumption. Such notice shall be accompanied by an additional deposit of $200,000.00 (the “Extension Deposit”)
thus increasing the total Deposit to $1,200,000.00.

 

    	 

    	 

    

 

9.2Seller’s
Obligations at the Closing. At the Closing, Seller will do, or cause to be done, the following:

 

9.2.1Closing
Documents. Seller shall execute, acknowledge (if necessary) and deliver originals of the following documents to the Escrow
Agent:

 

9.2.1.1A
Special Warranty Deed in the form and substance of Exhibit C, conveying the Land and Improvements to Purchaser in fee simple
utilizing the legal description for the Land set forth on Exhibit A hereto, subject
only to the Permitted Exceptions, and subject to the provisions of Section 3.2 above (the “Deed”);

 

9.2.1.2A
Blanket Conveyance, Bill of Sale, and Assignment in the form and substance of Exhibit D, whereby Seller conveys to Purchaser
all of Seller’s right, title and interest in and to the Personal Property, if any, free and clear of all liens and encumbrances
except Permitted Exceptions (subject to the provisions of Section 3.2 above), and Seller assigns to Purchaser, and Purchaser assumes,
all of Seller’s rights and obligations under the Service Contracts, Permits, Goodwill and Intellectual Property Rights, and
Other Rights to the extent the same are assignable; 

 

9.2.1.3An
Assignment of Landlord’s Interest in Leases in the form and substance of Exhibit E, whereby Seller assigns to Purchaser,
and Purchaser assumes, all of Seller’s rights and obligations under the Leases as set forth therein;

 

9.2.1.4A
Certificate of Non-Foreign Status; 

 

9.2.1.5A
certificate that all of Seller’s representations and warranties in this Agreement are true and correct in all material respects
as of the Closing Date in the form and substance of Exhibit F; 

 

9.2.1.6A
settlement statement showing all of the payments, adjustments and prorations provided for in Section 9.5 and otherwise agreed upon
by Seller and Purchaser; 

 

9.2.1.7An
affidavit for the benefit of the Title Company on the Title Company’s standard form. Seller shall also deliver to the Title
Company such evidence as may be reasonably required by the Title Company with respect to the authority of the person(s) executing
the deed of conveyance; and

 

9.2.1.8Documents
required by Existing Lender in connection with the Loan Assumption. 

 

9.2.2Transfer
Tax Forms. Real estate transfer tax forms and returns for the Property if required under applicable law.

 

9.2.3Notices of
Sale. Letters (a) executed by Seller, terminating any Service Contracts to be terminated pursuant to the terms hereof,
and (b) executed in counterpart by Seller, advising the Tenants under the Leases and providers under the Service Contracts to be
assumed by Purchaser of the sale of the Property to Purchaser and directing that all rents and other payments or invoices, as applicable,
which shall become due and payable after the Closing Date be sent to Purchaser or as Purchaser may direct.

 

    	 

    	 

    

 

9.2.4Original
Property Information Documents. Seller will deliver to Purchaser originals within Seller’s possession of the Leases,
Service Contracts, Warranties and Permits; provided, however, that any of the Property Information located at the
Property shall remain at the Property.

 

9.2.5Possession.
Seller will deliver possession of the Property.

 

9.2.6Keys.
Seller will deliver all keys in the possession or subject to the control of Seller, including, without limitation, master keys
as well as combinations, card keys and cards for the security systems, if any.

 

9.2.7Costs.
Seller will pay all costs allocated to Seller pursuant to Section 9.5 of this Agreement.

 

9.3Purchaser’s
Obligations at the Closing. At the Closing, Purchaser will do, or cause to be done, the following in connection with the Property:

 

9.3.1Closing
Documents. At Closing, Purchaser shall execute, acknowledge (if necessary) and deliver originals of the following documents
to the Escrow Agent:

 

9.3.1.1A
Blanket Conveyance, Bill of Sale, and Assignment in the form and substance of Exhibit D;

 

9.3.1.2An
Assignment of Landlord’s Interest in Leases in the form and substance of Exhibit E; 

 

9.3.1.3A
certificate that all of Purchaser’s representations and warranties in this Agreement are true and correct as of the Closing
Date in the form and substance of Exhibit G;

 

9.3.1.4A
settlement statement showing all of the payments, adjustments and prorations provided for in Section 9.5 and otherwise agreed upon
by Seller and Purchaser; 

 

9.3.1.5Original
letters, executed in counterpart by Purchaser, as set forth in Section 9.2.3(b);

 

9.3.1.6Real estate
transfer tax forms and returns for the Property if required under applicable law; Such evidence as may
be reasonably required by the Title Company with respect to the authority of the person(s) executing the documents required to
be executed by Purchaser or on behalf of Purchaser, and such other documents and information as the Title Company may require in
order to issue the Title Policy to Purchaser; and

 

9.3.1.7Documents
required by Lender in connection with the Loan Assumption.

 

9.3.2Payment
of Consideration. Purchaser will pay to Seller the Purchase Price in accordance with Article 2
of this Agreement, as adjusted in accordance with the provisions of this Agreement.

 

9.3.3Costs.
Purchaser will pay all costs allocated to Purchaser pursuant to Section 9.5 of this Agreement.

 

9.4Escrow.
The delivery of the documents and the payment of the sums to be delivered and paid at the Closing shall be accomplished through
escrow with the Escrow Agent. Escrow Agent shall not deliver or record any documents or disburse any funds until Escrow Agent receives
written confirmation from authorized representatives of each of Seller and Purchaser that all conditions to Closing have been satisfied
or waived.

 

    	 

    	 

    

 

9.5Costs
and Adjustments at Closing.

 

9.5.1Expenses.
Purchaser shall pay (a) the Existing Lender’s fees, charges or costs in connection with the Loan Assumption, including,
without limitation, any application fee, loan assumption fee and any attorneys’ or administrative fees of Existing Lender
in connection with the Loan Assumption, (b) the recording costs for recording the Deed and any of the Closing documents that Purchaser
desires to record in connection with the transfer of the Property to Purchaser and for recording the assumption agreement and/or
other documents required to be recorded by the Existing Lender in connection with the Loan Assumption, (c) the incremental cost
for “extended coverage” in excess of the cost of a “standard coverage” owner’s title insurance policy
(with standard pre-printed exceptions), and any endorsement or other title insurance required by Existing Lender in connection
with the Loan Assumption; (d) the cost of any update to (or re-certification to Purchaser of) the survey described in Section 3.2
hereof; (e) the transfer tax applicable to the sale of the Property; and (f) one-half of the escrow/settlement
fees of the Escrow Agent. Seller shall pay: (a) the expenses related to delivering the Property
to Purchaser in the agreed-upon condition, and as otherwise provided in this Agreement; (b) the cost of a “standard
coverage” owner’s policy of title insurance, and (c) one-half of the settlement fees of
the Escrow Agent. The Seller and Purchaser shall each pay their respective attorney’s fees. Purchaser shall pay for
its “due diligence” expenses, except for those items which Seller is herein obligated to provide. All other costs and
expenses of the transaction contemplated hereby shall be borne by the party incurring the same. The costs described in this Section
9.5 shall be referred to herein as the “Closing Costs.” The provisions of this Section 9.5 shall survive the
termination of this Agreement to the extent such Closing Costs are incurred.

 

9.5.2Proration
Schedule. Seller shall prepare a proposed proration schedule for the Property (the “Proration Schedule”)
and deliver it to Purchaser on or prior to the Closing Date, including the items specified below and any other items the parties
determine necessary. 

 

9.5.3Real
Estate and Personal Property Taxes. Real estate, personal property and ad valorem taxes for the year of Closing will be prorated
between Seller and Purchaser as of midnight of the day prior to the Closing Date on the basis
of actual bills therefor, if available. If such bills are not available, then such taxes shall be prorated on the basis of the
most currently available tax bills and, thereafter, promptly reprorated upon the availability of actual bills for the applicable
period, if and only if the reproration would result in an adjustment to either party exceeding $2500. All rebates or reductions
in taxes received subsequent to Closing, net of costs of obtaining the same, shall be prorated as of the Closing, if and only if
the reproration would result in an adjustment to either party exceeding $2500, and promptly remitted to the appropriate party.
The current installment of all special assessments, if any, which are a lien against the Property at the time of Closing and are
being or may be paid in installments shall be prorated as of midnight of the day prior to the Closing Date. 

 

9.5.4Lease
Security Deposits and Rents. Purchaser shall receive from Seller a credit against the Purchase Price in the amount of any refundable
cash security deposits paid pursuant to the Leases and not yet refunded to tenants. After Closing, Purchaser shall be responsible
for maintaining as security deposits the aggregate amount so credited to Purchaser in accordance with the provisions of the Leases
relevant thereto. All rents and other similar payments under the Leases actually received by Seller
prior to the Closing Date shall be prorated as of 12:01 a.m. on the Closing Date. At Closing,
Purchaser shall pay Seller a discounted amount for all past due rent or other similar payments outstanding under any Lease at the
following discount rate calculated as of the Closing Date: (i) 98% of the applicable amount if 0-30 days past due, (ii) 75% of
the applicable amount if 31-60 days past due. The entire amount of all late rent or other similar payments under any Lease or other
occupancy arrangement received or collected after the Closing Date shall be for the sole benefit of Purchaser.

 

    	 

    	 

    

 

9.5.5Utilities.
Water, sewer, electric and other utility charges shall be prorated as of 12:01 a.m. on the Closing Date.
If the bill for any of the foregoing will not have been issued as of 12:01 a.m. on the Closing Date,
the charges therefor shall be prorated on the Closing Date on the basis of the charges of the prior period for which such bills
were issued. Seller and Purchaser shall cooperate to cause the transfer of utility accounts from Seller to Purchaser. Seller shall
be entitled to retain any utility security deposits to be refunded, (or Seller may receive a credit at Closing, at Purchaser’s
option). At Closing, Purchaser shall post substitute utility security deposits to replace those previously paid by Seller or, if
the utility provider will not refund such deposits to Seller, Seller shall receive a credit therefor by Purchaser at Closing. Any
transfer fees required with respect to any such utility shall be paid by or charged to Purchaser.

 

9.5.6Insurance
Policies. Premiums on insurance policies will not be adjusted. As of the Closing Date, Seller will terminate its insurance
coverage and Purchaser will affect its own insurance coverage.

 

9.5.7Service
Contracts. All amounts payable under any of the Service Contracts being assumed by Purchaser, excluding any signing
bonuses, incentive payments and/or other upfront money, which shall be the sole property of Seller, shall be prorated as of 12:01
a.m. on the Closing Date.

 

9.5.8Other
Income and Expenses. All other income and ordinary operating expenses for or pertaining to the Property, including, but not
limited to, public utility charges, maintenance, service charges, license fees and lease commissions, will be prorated as
of 12:01 a.m. on the Closing Date. Any income related to Resident Utility Billing Systems shall
be prorated based on the average billing for the past 12 months. 

 

9.5.9Mortgage
Interest and Escrows. Interest due under the Loan shall be prorated as of the Closing therefor. The amounts of any escrows
or reserves held by Existing Lender for the benefit of the Seller shall be paid or credited to the Seller by Purchaser at Closing.

 

9.5.10Post-Closing
Adjustments. In the absence of manifest error or where actual numbers are not available for proration purposes, all prorations
shall be final and there shall be no post-closing adjustment except (i) ad valorem taxes as set forth in Section 9.5.3 and (ii)
if there is an unanticipated item of income or expense relating to a period prior to Closing that is discovered by Purchaser or
Seller within ninety (90) days after Closing and the monetary effect of such item of income or expense to Purchase or Seller had
it been paid or prorated at Closing exceeds $2500, then either party may bring it to the attention of the other and request a reproration.
Any amounts so adjusted or reprorated shall be paid by the party owing such amount within thirty (30) days after receipt of the
amount owed.

 

    	 

    	 

    

 

If any post-Closing
reconciliation or adjustment is required between the parties pursuant to this Agreement (because of an adjustment or prorate that
is done on an estimated basis, or otherwise, under the preceding paragraph), the parties will reasonably co-operate with each other
to provide the information needed for such reconciliation and adjustment, and will promptly do the reconciliation and adjustment
when the information is available to do so. If any other closing costs not specifically provided for herein are due at closing
of this transaction, each party shall pay such closing costs as are normally and customarily the responsibility of such party.

 

9.5.11 Reporting
Person. If requested in writing by either party, the Escrow Agent shall confirm its status as the “Reporting Person”
in writing, which such writing shall comply with the requirements of Section 6045(e) of the United States Code and the regulations
promulgated thereunder.

 

9.5.12Termination
of Employees. As of the Closing Date, Seller will terminate from employment any employees of Seller at the Property, and shall
pay all compensation owed to such employees by the end of the business day after the termination, including (without limitation)
all such accrued compensation and make all contributions necessary to fully fund all such accrued and vested benefits no later
than the Closing Date. Seller will be responsible for complying with any applicable Legal Requirements pertaining to such terminations,
including (without limitation) requirements under the Worker Adjustment and Retraining Notification Act (“WARN Act”),
the requirements of Section 4980B (“COBRA”) of the Code, and any other federal, state or local Legal Requirements
pertaining to termination of employees, employee compensation and similar matters.

 

9.5.13
Survival. In making the prorations required by this Section 9.5, the economic burdens and benefits of ownership of
the Property for the Closing Date shall be allocated to Purchaser. The provisions of this Section 9.5
shall survive Closing.

 

    	 

    	 

    

 

10.RISK
OF LOSS, DAMAGE, CONDEMNATION.

 

10.1Risk
of Loss. Risk of loss for damage to the Property, or any part thereof, by fire or other casualty from the Effective Date until
Closing will be on Seller. Upon Closing, full risk of loss with respect to the Property will pass to Purchaser.

 

10.2Damage.
Seller shall promptly deliver to Purchaser written notice of any casualty or taking involving the Property, to the extent
the same are received by an officer of Seller’s property manager.

 

10.3Minor
Damage. In the event of loss or damage to the Property
or any portion thereof which is not “major” (as hereinafter
defined), this Agreement shall remain in full force and effect
and the repairs shall be completed in accordance with Section 10.5 hereof.

 

10.4Major
Damage. In the event of a “major” loss or damage,
Purchaser may terminate this Agreement by written notice to Seller,
in which event the Deposit, less the non-refundable Earnest Money, shall be returned
to Purchaser and thereafter, neither party will have any further rights or obligations hereunder, except for any obligations
that expressly survive termination. If Purchaser does not elect to terminate this Agreement
within ten (10) days after Seller sends Purchaser written notice
of the occurrence of “major” loss or damage, then Purchaser
shall be deemed to have elected to proceed with Closing and
the repairs shall be completed in accordance with Section 10.5 hereof.

 

10.5Continued
Agreement. If this Agreement is not terminated pursuant to Section 10.4 hereof and if prior to Closing Seller is unable to
perform all repairs necessary to bring the Property to its condition immediately prior to such loss or damage, Seller shall
assign to Purchaser all of Seller’s right, title and interest
to any claims and proceeds Seller may have with respect to
any casualty insurance policies or condemnation awards relating to
the Property, except to the extent needed to reimburse Seller for reasonable sums it expended prior to the Closing for
the restoration or repair of such Property or in collecting such insurance proceeds or condemnation awards. In the event
that Seller elects to perform repairs upon the Property, Seller
shall use reasonable efforts to complete such repairs prior to Closing.
If Seller assigns a casualty or condemnation claim to Purchaser, at Closing
Purchaser shall be credited with any applicable insurance deductibles. If such proceeds or awards have not been collected as of
the Closing, then such proceeds or awards shall be assigned to Purchaser at Closing, except to the extent needed to reimburse Seller
for sums it expended prior to the Closing for the restoration or repair of such Property. The terms of this Section 10.5 shall
be subject to the rights of any mortgagee or lender under any mortgage, deed of trust or similar document encumbering the Property,
unless any such mortgagee or lender acknowledges in a signed document satisfactory to Seller and Purchaser that such mortgagee
or lender will not take possession of or otherwise require any such proceeds or awards to be used in a particular manner. In the
event any such mortgagee or lender refuses to provide any such signed document, or requires that any casualty or condemnation proceeds
or awards be used pursuant to the terms of any mortgage, deed of trust or similar document (including use for restoration of the
Property), Seller shall notify Purchaser thereof (“Seller’s Notice”) and then either party hereto shall
have the right to terminate this Agreement upon written notice to the other no later than five (5) days following Seller’s
Notice or the Closing Date, whichever first occurs.  If this Agreement is not terminated as provided
in the previous sentence, Seller shall credit Purchaser at Closing with an amount equal to the amount of any proceeds or awards
applied by any such mortgagee or lender to the indebtedness secured by any mortgage, deed of trust or similar document encumbering
the Property. In the event either party terminates this Agreement pursuant to the terms of this Section 10.5, the
Deposit shall be returned to Purchaser and thereafter, neither party will have any further rights
or obligations hereunder, except for any obligations that expressly survive termination.

 

    	 

    	 

    

 

10.6Definition
of Major Loss. For purposes of Section 10.3 and Section 10.4 hereof, “major”
loss or damage refers to the following: (i) loss or damage
to the Property or any portion thereof such that the cost
of repairing or restoring the Property to a condition substantially
similar to that of the Property prior to the event of
damage would be, in the written opinion of an architect selected
by Seller and reasonably approved by Purchaser, equal to or
greater than $1,000,000 and (ii) any loss due to a condemnation which
permanently and materially impairs the current use of the Property
or access to the Property. If Purchaser does not give notice to Seller of
Purchaser’s reasons for disapproving an architect within five (5)
Business Days after receipt of notice of the proposed architect,
Purchaser shall be deemed to have approved the architect selected
by Seller.

 

11.REMEDIES
AND ADDITIONAL COVENANTS.

 

11.1Seller
Default. In the event that, prior to Closing, Seller breaches any of its representations or warranties or fails to perform
any of its covenants in any material respect, and such breach or failure shall continue for a period of ten (10) Business Days
after notice thereof from Purchaser, then Purchaser’s sole and exclusive remedy shall be as follows: (a) to file an action
to obtain specific performance of Seller’s obligation to perform in accordance with this Agreement, or (b) to declare
this Agreement terminated and receive a return of the full Deposit, and reimbursement for all out-of-pocket due diligence, legal
and other expenses associated with the transaction contemplated herein, not to exceed $50,000.00 (collectively, “Transaction
Costs”).

 

In
the event this Agreement is terminated after Seller’s default, then upon return of the full Deposit to Purchaser and
payment of Transaction Costs to Purchaser pursuant to Section 11.1(b), all rights and obligations of the parties under this
Agreement shall expire (except for such provisions as expressly survive the expiration or the termination hereof or as otherwise
expressly provided herein), and this Agreement shall become null and void.

 

In
the event that, prior to Closing, Purchaser obtains actual knowledge that Seller has made an untrue representation, Purchaser
will notify Seller in writing as to the representation that Seller made that was untrue. If Purchaser nevertheless proceeds to
consummate the Closing shall take place without Purchaser making an objection to an untrue representation of which Purchaser shall
have knowledge, Purchaser shall be deemed to have waived all liability of Seller by reason of such untrue representation.

 

In addition to Purchaser’s
remedies above, Purchaser further agrees that its recourse against Seller under this Agreement or under any other agreement, document,
certificate or instrument delivered by Seller to Purchaser, or under any law applicable to the Property or this transaction, shall
be strictly limited to Seller’s interest in the Property (or upon consummation of the transaction contemplated hereunder,
to the net proceeds of the sale thereof actually received by Seller), and that in no event shall Purchaser seek or obtain any recovery
or judgment against any of Seller’s other assets (if any) or against any of Seller’s members, partners, or shareholders,
as the case may be (or their constituent members, partners, or shareholders, as the case may be) or any director, officer, employee
or shareholder of any of the foregoing. Purchaser agrees that Seller shall have no post-closing liability to Purchaser for any
breach of Seller’s covenants, representations or warranties hereunder or under any other agreement, document, certificate
or instrument delivered by Seller to Purchaser, or under any law applicable to the property or this transaction unless the valid
claims for all such breaches collectively aggregate more than $25,000, in which event the full amount of such valid claims shall
be actionable, up to the cap set forth in the following paragraph.

 

    	 

    	 

    

 

Purchaser agrees that
any recovery against Seller for any breach of Seller’s covenants, representations or warranties hereunder or under any other
agreement, document, certificate or instrument delivered by Seller to Purchaser (other than the Deed, which is not covered by the
“cap” in this paragraph), or under any law applicable to the Property or this transaction, shall be limited to Purchaser’s
actual damages in the aggregate (“Recoverable Damages”) plus the actual, reasonable out-of-pocket expenses in
enforcing Purchaser’s rights against Seller, but the Recoverable Damages shall not be in excess of two percent (2%) of the
Purchase Price for the Property.

 

Neither Seller nor
Purchaser shall be entitled to receive, and each party hereby waives any right to receive, any consequential, indirect or punitive
damages.

 

11.2Purchaser
Default. The parties acknowledge and agree that if Purchaser breaches any of its representations or warranties or fails
to perform any of its covenants in any material respect it would be extremely difficult to ascertain the extent of the actual detriment
Seller would suffer as a result of such breach and/or failure. Consequently, if Purchaser breaches any of its representations or
warranties, fails to perform any of its covenants in any material respect, or otherwise defaults in its obligations hereunder,
then Seller shall be entitled to terminate this Agreement by giving written notice thereof to Purchaser prior to or at the Closing,
in which event the Deposit shall be paid to Seller as fixed, agreed and liquidated damages, and, after the payment of the Deposit
to Seller, neither Seller nor Purchaser will have any further rights or obligations under this Agreement, except for any obligations
and indemnities that expressly survive termination. PURCHASER AND SELLER ACKNOWLEDGE AND AGREE THAT THE
DEPOSIT AMOUNT IS THE PARTIES’ BEST ESTIMATE OF THE DAMAGES SELLER WOULD SUFFER BECAUSE OF ANY SUCH BREACH, FAILURE OR DEFAULT
BY PURCHASER, AND THAT SUCH ESTIMATE IS REASONABLE COMPENSATION UNDER THE CIRCUMSTANCES EXISTING ON THE EFFECTIVE DATE OF THIS
AGREEMENT, AND THE RETENTION OF THE DEPOSIT AS LIQUIDATED DAMAGES SHALL BE THE EXCLUSIVE REMEDY FOR PURCHASER’S BREACH, FAILURE
OR DEFAULT, SINCE THE PRECISE AMOUNT OF SUCH COMPENSATION WOULD BE DIFFICULT TO DETERMINE. 

 

 

	The foregoing is accepted and agreed to. 	 	 	 
	 	 	 	 
	 Initials of:	/s/ NB	 	/s/ MEN	 
	 	Seller 	 	Purchaser 	 

 

    	 

    	 

    

 

11.3Environmental
Release by Purchaser. Purchaser hereby agrees that, if at any time after the Closing, any third party or any governmental agency
seeks to hold Purchaser responsible for the presence of, or any loss, cost or damage associated with, Hazardous Materials (as hereinafter
defined) in, on, above or beneath the Property or emanating therefrom, then except for Seller Material Liabilities (as defined
below) the Purchaser waives any rights that Purchaser may have against Seller in connection therewith as an owner or operator of
the Property, including, without limitation, under CERCLA or RCRA, and Purchaser agrees that except for Material Seller Liabilities
(as defined below), Purchaser shall not (i) implead the Seller, (ii) bring a contribution action or similar action against the
Seller, or (iii) attempt in any way to hold the Seller responsible with respect to any such matter. The provisions of this Section
11.3 shall survive the Closing. As used herein, “Hazardous Materials” shall mean and include, but shall not be limited
to any petroleum product and all hazardous or toxic substances, wastes or substances, any substances which because of their concentration,
chemical, or active, flammable, explosive, infectious or other characteristics, constitute or may reasonably be expected to constitute
or contribute to a danger or hazard to public health, safety or welfare or to the environment, including, without limitation, mold,
any hazardous or toxic waste or substances which are included under or regulated (whether now existing or hereafter enacted or
promulgated, as they may be amended from time to time) including, without limitation, CERCLA, RCRA, and similar state laws and
regulations adopted thereunder. The foregoing will not be construed as an assumption or indemnity by Purchaser as to any action
or claim that any third party (including, without limitation, any governmental agency) may have against Seller. Furthermore, the
foregoing shall not be applicable to any material claims or material liabilities (“Seller Material Liabilities”)
arising out of, or in connection with, any contamination of the Property by Hazardous Materials that was caused, directly or indirectly,
or was exacerbated, by any action or inaction by Seller, or its employees, agents, independent contractors or representatives,
during the time period in which Seller owned the Property, or that was Known to Seller (as defined in this Agreement) but not disclosed
to Purchaser pursuant to Section 6 of this Agreement prior to the Closing.

 

11.4Delivery
of Materials. Notwithstanding anything contained in this Agreement to the contrary, if this Agreement is terminated for any
reason whatsoever, then Purchaser shall promptly deliver to Seller, or at Seller’s option, destroy all Property Information
provided to Purchaser by Seller, including copies thereof in any form whatsoever, including electronic form. The obligations of
Purchaser under this Section 11.4 shall survive any termination of this Agreement.

 

12.BROKERAGE
COMMISSION.

 

12.1Brokers.
Seller represents and warrants to Purchaser that Seller has not contacted or entered into any agreement with any real estate broker,
agent, finder, or any party in connection with this transaction except for Bell Partners Inc. (an affiliate of Seller) (collectively,
“Seller’s Broker”) and that Seller has not taken any action that would result in any real estate broker’s
or finder’s fees or commissions being due and payable to any party other than Seller’s Broker with respect to the transaction
contemplated hereby. Seller will be solely responsible for the payment of any commission to Seller’s Broker in accordance
with the provisions of a separate agreement and Purchaser shall have no obligations or liabilities relative to such commissions.
Purchaser hereby represents and warrants to Seller that Purchaser has not contracted or entered into any agreement with any real
estate broker, agent, finder, or any party in connection with this transaction, and that Purchaser has not taken any action that
would result in any real estate broker’s or finder’s fees or commissions being due or payable to any party with respect
to the transaction contemplated hereby. 

 

    	 

    	 

    

 

12.2Indemnity.
Each party hereby indemnifies and agrees to hold the other party harmless from any loss, liability, damage, cost, or expense (including,
without limitation, reasonable attorneys’ fees) paid or incurred by the other party by reason of a breach of the representation
and warranty made by such party under this Article 12. Notwithstanding anything to the contrary contained in this Agreement, the
indemnities set forth in this Section 12.2 shall survive the Closing.

 

13.NOTICES.

 

13.1Written
Notice. All notices, demands and requests that may be given or that are required to be given by either party to the other party
under this Agreement must be in writing given to the applicable party’s address set forth in Section 13.3.

 

13.2Method
of Transmittal. Unless otherwise specifically provided herein, all notices, consents, directions,
approvals, instructions, requests and other communications required or permitted by the terms hereof to be given (collectively
“Notices”) shall be given in writing and effective upon receipt. Notices may be served: by certified or registered
mail, postage paid with return receipt requested; by private courier, prepaid; by telex, facsimile, or other telecommunication
device capable of transmitting or creating a written record; or personally to the addresses listed below. Couriered Notices shall
be deemed received when delivered as addressed, or if the addressee refuses delivery, when presented for delivery notwithstanding
such refusal. With respect to any notice sent by telex, facsimile or other telecommunication device, the term “receipt”
will mean electronic verification that transmission to the recipient was completed, if such transmission occurs during the normal
business hours, or otherwise on the next business day after the date of transmission. Personal delivery of Notices shall be effective
when accomplished.

 

13.3Addresses.
The addresses for proper notice under this Agreement are as follows:

 

	Purchaser:	Seller:
	 	 
	Nicol Investment Company, LLC	c/o Bell Partners Inc.
	12555 High Bluff Drive, Suite 333	700 S. Washington Street, Suite 250
	San Diego, CA 92130	Alexandria, VA 22314
	Attn: Ronald B. Johnson	 
	or Mark E. Nicol	Attn: Nickolay Bochilo
	Phone: 858-350-9600	Phone: (336) 232-1909
	Facsimile: 858-350-0305	Facsimile: (336) 232-1901
	E-Mail:	 
	ron@nicolinv.com
    and	 
	mark@nicolinv.com	E-Mail: nbochilo@bellpartnersinc.com
	 	 
	 	And
	 	 
	 	c/o Bluerock Real Estate
	 	712 Fifth Avenue, 9th Floor
	 	New York, NY 10019
	 	Attn:  Ramin Kamfar
	 	Phone: (212) 843-1601
	 	Facsimile: (646) 278-4220
	 	Email:  rkamfar@bluerockre.com

 

    	 

    	 

    

 

	WITH A COPY TO:	WITH A COPY TO:
	 	 
	Stoel Rives LLP	Schell Bray PLLC
	900 SW Fifth Ave. Suite 2600	P.O. Box 21847
	Portland, OR 97204	Greensboro, North Carolina 27401
	Attn: David Green, Esq.	Attn: Thomas P. Hockman, Esq. 
	Phone: 503-294-9333	Phone: 336-370-8800
	Facsimile: 503-220-2480	Facsimile:  336-370-8830
	E-Mail: dwgreen@stoel.com	E-Mail: thockman@schellbray.com
	 	 
	ESCROW AGENT:	TITLE AGENT:
	 	 
	Dee Goodrich	Justin VanderVeen
	VP, Senior Commercial Escrow Officer	National Commercial Services
	Major Accounts Division	Fidelity National Title Group
	Fidelity National Title	1300 Dove Street
	4350 La Jolla Village Drive, Suite 370	Suite 310
	San Diego, CA 92122	Newport Beach, CA 92660
	Phone:  858-334-6909	Phone:  (949) 622-4962 direct
	E-Fax:  858-334-6979	justin.vanderveen@fnf.com   
	Dee.Goodrich@fnf.com  	 

 

Any party may from time to time by written
notice to the other party designate a different address for notices within the United States of America.

 

14.ASSIGNMENT.

 

This
Agreement shall not be assigned by either party without the prior consent of the other, which consent shall not be unreasonably
withheld, conditioned or delayed; provided, however, Purchaser shall have the right to assign this Agreement without
the prior written consent of Seller to an entity that is controlling, controlled by or under common control with Purchaser or the
principals of Purchaser; however, such assignment shall be effective only when a fully executed counterpart thereof is delivered
to Seller bearing the signatures of assignor and assignee and including an express assumption by assignee of all liability and
other obligations of Purchaser hereunder. In the event of an assignment of this Agreement pursuant to this Section 14, Purchaser
shall remain primarily liable for and shall not be released from any obligations, indemnities and liabilities hereunder, including
such obligations, indemnities and liabilities that expressly survive Closing hereunder.

 

    	 

    	 

    

 

15.MISCELLANEOUS.

 

15.1Entire
Agreement. This Agreement embodies the entire agreement between the parties and cannot be varied except by the written agreement
of the parties and supersedes all prior agreements and undertakings.

 

15.2Modifications.
This Agreement may not be modified except by a formal, written amendment or modification agreement that is duly executed by both
parties.

 

15.3Gender
and Number. Words of any gender used in this Agreement will be construed to include any other gender and words in the singular
number will be construed to include the plural, and vice versa, unless the context requires otherwise.

 

15.4Captions.
The captions used in connection with the Articles, Sections and Subsections of this Agreement are for convenience only and will
not be deemed to expand or limit the meaning of the language of this Agreement.

 

15.5Successors
and Assigns. This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective legal
representatives, successors and assigns permitted hereunder.

 

15.6Controlling
Law. This Agreement will be construed under, governed by and enforced in accordance with the laws of the state (Tennessee)
where the Property is located.

 

15.7Exhibits.
All exhibits, attachments, annexed instruments and addenda referred to herein will be considered a part hereof for all purposes
with the same force and effect as if copied verbatim herein.

 

15.8No
Rule of Construction. Seller and Purchaser have each been represented by counsel in the negotiations and preparation of this
Agreement; therefore, this Agreement will be deemed to be drafted by both Seller and Purchaser, and no rule of construction will
be invoked respecting the authorship of this Agreement.

 

15.9Time
of Essence. Time is important to both Seller and Purchaser in the performance of this Agreement, and both parties have agreed
that TIME IS OF THE ESSENCE with respect to the obligations of the parties hereunder and to any date set out in this Agreement.

 

15.10Business
Days. “Business Day” means a day other than a Saturday, Sunday, federal holiday or other day on which commercial
banks in the state in which the Property is located are authorized or required by law or executive order to close. If the final
date of any period set out in any paragraph of this Agreement falls on a day that is not a Business Day, then, and in such event,
the time of such period will be extended to the next Business Day.

 

15.11Confidentiality.
Purchaser and Seller agree not to record this Agreement or any memorandum hereof and to hold all confidential information related
to this transaction in strict confidence, and will not disclose same to any person other than to the members, directors, officers,
prospective partners, investors, employees and agents of the party or its principals, as well as to consultants, attorneys, accountants,
banks or other third parties working with Seller or Purchaser in connection with the transaction (“Related Parties”),
in each case who need to know such information for the purpose of consummating this transaction. The confidentiality restrictions
in this Agreement will not be applicable to (i) disclosure of information required by applicable law, rule or regulation, or as
may be required by court order, legal process, or by a governmental agency such as the Internal Revenue Service or Securities and
Exchange Commission, or (b) providing a copy of this Agreement to the Escrow Agent or to the Existing Lender, who will not be bound
to keep this Agreement confidential. Furthermore, the confidentiality restrictions in this Agreement will not survive the Closing
but will survive the termination of this Agreement pursuant to the terms hereof.

 

    	 

    	 

    

 

Each party agrees to
indemnify, defend and hold the other harmless or to cause assignees and designees to indemnify, defend and hold the other harmless
from and against any liability, suits, cause of action, proceeding, loss, damage, cost or expenses, including, but not limited
to, reasonable attorneys fees and costs incurred or sustained by such other party in the event of a breach by such party of the
restrictions set forth in this Section 15.11.

 

15.12Attorneys’
Fees and Costs. In the event either party is required to resort to litigation to enforce its rights under this Agreement, the
prevailing party in such litigation will be entitled to collect from the other party all reasonable costs, expenses and attorneys’
fees incurred in connection with such action.

 

15.13Counterparts.
This Agreement may be executed in multiple counterparts which shall together constitute a single document. However, this Agreement
shall not be effective unless and until all counterpart signatures have been obtained. A facsimile transmission of an original
signature shall be binding hereunder.

 

15.14Waiver
of Jury Trial. TO THE EXTENT PERMITTED BY LAW, EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM
BROUGHT BY EITHER PARTY IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE RELATIONSHIP
OF SELLER AND PURCHASER HEREUNDER, PURCHASER’S OWNERSHIP OR USE OF THE PROPERTY, AND/OR ANY CLAIMS OF INJURY OR DAMAGE.

 

15.15IRC
Section 1031 Tax Deferred Exchange. The parties acknowledge that it may be the intent of each party to complete an Internal
Revenue Code Section 1031 Tax Deferred Exchange (an “Exchange”). Seller and Purchaser agree to cooperate in
the manner necessary to complete said Exchange at no additional cost or liability to either Seller or Purchaser. Each party agrees
to cooperate with the other’s assignees and designees by taking any action which may be reasonably and lawfully requested
in structuring the sale of the Property as a tax deferred exchange, provided that (i) neither party shall be required to pay any
increased costs solely as a result of so cooperating, (ii) neither party makes any representation or warranty whatsoever that
the transaction will qualify as a tax deferred exchange, and (iii) closing shall be accomplished through an exchange agent. Each
party agrees to indemnify, defend and hold the other harmless or to cause assignees and designees to indemnify, defend and hold
the other harmless from and against any liability, suits, cause of action, proceeding, loss, damage, cost or expenses, including,
but not limited to, reasonable attorneys fees and costs incurred or sustained by such other party in cooperating with the structuring
of this transaction as a tax deferred exchange; provided, however, that the foregoing indemnification shall not extend to any
loss, damage or expense that such party would have incurred had this transaction not been structured as a tax deferred exchange.
Neither party is required to acquire or hold any exchange property or incur any liability or take any action to effect the Exchange,
other than execution or approval of use of an exchange accommodator and any assignment or and escrow instructions that may be
required by a party to effectuate the Exchange. References in this Agreement to "Seller" and "Purchaser"
are solely for purposes of naming the parties. The references to such parties, and to this transaction as a "sale"
or "purchase" transaction, shall not be construed to affect the transaction as a property exchange transaction
if a party effects the property exchange.

 

    	 

    	 

    

 

15.16Future
Role of Bell Partners Inc. Seller understands and acknowledges that Bell Partners Inc., current property manager, is negotiating
with Purchaser to remain as property manager following the sale for a fee of 3.5% of gross monthly receipts and on other terms
and conditions to be negotiated by Purchaser and Bell Partners Inc. during the Inspection Period. The property management agreement
between the parties will either be on a month-to-month basis or will be terminable at any time upon thirty (30) days’ written
notice of termination by one party to the other party, without the necessity for “cause” or for payment of any cancellation
fee or termination fee or other compensation for any time period after the effective date of termination. Seller and Purchaser
acknowledge that Bell Partners Inc. may be involved in the due diligence and closing process on behalf of both Seller and Purchaser
and each agree to waive any conflict inherent in such role. 

 

15.17Non-Solicitation
of Employees Prior to Expiration of the Inspection Period. Purchaser acknowledges and agrees that, prior to the expiration
of the Inspection Period, without the express written consent of Seller, neither Purchaser nor any of Purchaser’s employees,
affiliates or agents shall solicit any of Seller’s employees or any employees located at the Property for potential employment;
provided, however, that the foregoing will not restrict Purchaser’s ability to have discussions with Seller’s property
manager in connection with Purchaser’s due diligence and inspections relating to the Property pursuant to this Agreement.
Seller shall have the right, at its election, to have a representative present during any discussion by Purchaser or any of its
employees, affiliates or agents with Seller’s property manager. Purchaser shall be permitted to have discussions with Seller’s
property manager at any time, about engaging such property manager to continue to serve in such capacity following Closing.

 

15.18Relationship
Between Parties. No provision of this Agreement or previous (or subsequent) conduct or activities of the parties will be construed:
(i) as making either party an agent, principal, partner or joint venturer with the other party or as empowering either party to
bind the other party to any contract or agreement, or (ii) as making either party responsible for payment or reimbursement of any
costs incurred by the other party (except as may be expressly set forth herein or in its attached exhibits).

 

15.19Response
to Requests and Communications. Each party will use commercially reasonable efforts to respond promptly to requests and communications
from the other party on matters requiring a decision, action or response under the terms of this Agreement.

 

15.20No Third
Party Beneficiaries; Obligations. This Agreement is for the benefit only of the parties hereto and their nominees, successors,
and assignees as permitted in this Agreement, and no other person or entity shall be entitled to rely hereon, receive any benefit
herefrom or have any right to enforce against any party hereto any provision hereof. The obligations of Seller hereunder shall
be joint and several.

 

16.AS IS and Release.

 

16.1Except as provided
in this Contract or in the conveyance documents to be delivered at Closing, the Property is expressly purchased and sold “AS
IS,” “WHERE IS,” and “WITH ALL FAULTS.” The Purchase Price and the terms and conditions set forth
herein are the result of arm’s-length bargaining between entities familiar with transactions of this kind, and said price,
terms and conditions reflect the fact that Purchaser shall not have the benefit of, and is not relying upon, any information provided
by Seller or Seller’s Broker or statements, representations or warranties, express or implied, made by or enforceable directly
against Seller or Seller’s Broker, including, without limitation, any relating to the value of the Property, the physical
or environmental condition of the Property, any state, federal, county or local law, ordinance, order or permit; or the suitability,
compliance or lack of compliance of the Property with any regulation, or any other attribute or matter of or relating to the Property
(except as provided in Article 6 herein). Purchaser agrees that Seller shall not be responsible or liable to Purchaser for any
defects, errors or omissions, or on account of any conditions affecting the Property except as provided in Article 6 herein. The
provisions of this Article 16 shall survive the Closing and delivery of the Deed to Purchaser; provided, however, that nothing
in this Section 16 shall be interpreted to modify or alter in any manner or to any degree the terms and limitations of Section
6.1.16.

 

    	 

    	 

    

 

16.2[Intentionally
deleted.]

 

17.Condominium Conversion. Purchaser
represents to Seller that Purchaser is contemplating purchasing the Property for investment purposes and not for the purpose of
converting the Property to a multifamily residential condominium. Purchaser and any assignee of Purchaser (permitted in accordance
with the provisions of this Agreement) agrees to indemnify, defend and hold Seller harmless from and against any and all damages,
losses, costs, claims, liabilities, expenses, demands or obligations of any kind or nature whatsoever attributable to claims asserted
by Purchasers of individual condominium units in the event Purchaser has converted the Property to a condominium form of ownership
at any time during a period of five (5) years following the Closing, including without limitation any and all claims by, through
or under any Purchaser of a condominium unit, their successors or assigns, any owner’s association, their successors and
assigns. The foregoing indemnification shall survive Closing or the termination of this Agreement.

 

18.Lead Warning Statement. Every
Purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that
such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning.
Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence
quotient, behavioral problems and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The Seller of
any interest in residential real property is required to provide the Purchaser with any information on lead-based paint hazards
from risk assessments or inspections in the Seller’s possession and notify the Purchaser of any known lead-based paint hazards.
A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase

 

19.Post Closing Access to Books
and Records. The parties agree that for a period beginning on the date the Property is conveyed
by Seller to Purchaser until the earlier of the time the Property is transferred by Purchaser or the date that is six (6) years
after the Closing Date, except as otherwise herein expressly provided, Seller and Bell Partners
Inc., their successors and assigns and their representatives shall have reasonable access to all books, records and tenant files
as reasonably necessary to enable Bell Partners Inc. or Seller to (i) prepare and file any and all tax returns; (ii) respond to
any and all written inquiries from a federal, state or local regulatory agency concerning the Property or a resident; (iii) respond
to and conduct all federal, state, or local tax audits, or other tax determinations or proceedings directly relating to Seller’s
ownership or Bell Partner Inc.’s management of the Property, or (iv) respond to and defend any litigation or similar claims,
all to the extent that such access may be reasonably necessary in connection with matters relating to the operations of Bell Partners
Inc. or Seller prior to the Closing Date. Such access shall be afforded by Purchaser upon receipt of reasonable advance written
notice and shall occur during normal business hours, subject to reasonable scheduling accommodations required by Purchaser. Bell
Partners Inc. shall be solely responsible for any costs or expenses incurred by it pursuant to the exercise of the right of access.
Nothing contained herein shall require Purchaser to maintain (or make available) the books, records and tenant files at any particular
location. Purchaser shall have the right to make photocopies of all requested books, files and records and deliver such copies
to Bell Partners Inc. at Bell Partners Inc.’s expense, in lieu of granting Bell Partners Inc. or Seller physical access
to such books, records and files. Purchaser shall at all times retain the right to possession of the original books, records and
files. If Purchaser shall desire to dispose of any of the books, records or files prior to the expiration of such six-year period,
Purchaser shall give Bell Partners Inc. at least thirty (30) days’ prior written notice of its intent to dispose of such
books, records and file and shall allow Bell Partners Inc., at its expense, to segregate and remove such books, records and files
as Bell Partners Inc. may select prior to such disposition.

 

 

[SIGNATURE PAGE TO
FOLLOW]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this Purchase and Sale Agreement as of the date first written above.

 

	SELLER:	 	PURCHASER:
	 	 	 	 
	Bell BR Hillsboro Village JV, LLC	 	Nicol Investment Company, LLC
	a Delaware limited liability company,	 	a Delaware limited liability company
	its Sole Member	 	 	 
	 	 	 	 
	 	By:	Bell Partners Inc.	 	By:	Aspen Asset Management, Inc.,
	 	 	a North Carolina corporation,	 	 	Its Managing Member
	 	 	its Manager	 	 	 
	 	 	 	 	 	 
	 	By:	/s/ Nickolay Bochilo	 	 	By:	/s/ Mark E. Nicol	 
	 	Name:  	Nickolay Bochilo	 	 	Name:  	Mark E. Nicol	 
	 	Title:	VP- Investments	 	 	Title:	PresidentForm of Representative’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 180 DAYS FOLLOWING THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT (DEFINED
BELOW) TO ANYONE OTHER THAN (I) AEGIS CAPITAL CORP. OR AN UNDERWRITER 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 UNDERWRITER OR SELECTED DEALER.

 

THIS PURCHASE WARRANT
IS NOT EXERCISABLE PRIOR TO [·], 2014. VOID AFTER 5:00 P.M., EASTERN TIME, [·],
2018.

 

COMMON STOCK PURCHASE WARRANT

 

For the Purchase of [·]
Shares of Common Stock

 

of

 

AKERS BIOSCIENCES, INC.

 

1.          Purchase
Warrant. THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of [·]
(“Holder”), as registered owner of this Purchase Warrant, to Akers Biosciences, Inc., a New Jersey corporation
(the “Company”), Holder is entitled, at any time or from time to time from [_________], 2014 (the “Commencement
Date”), and at or before 5:00 p.m., Eastern time, [___________], 2018 (the “Expiration Date”),
but not thereafter, to subscribe for, purchase and receive, in whole or in part, up to [·]
shares of common stock of the Company [equal to 3% of the Shares sold in the Offering], par value $0.001 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 the Purchase Warrant. This Purchase Warrant is initially exercisable at $[___] per
Share (125% of the price of the Shares sold in the Offering); 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.

 

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 Company shall 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 price 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 Act, or pursuant to an exemption from registration under the Act
and applicable state law which, in the opinion of counsel to the Company, is available.”

 

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 180 days following the effective
date of the registration statement on form S-1 (Registration No. [______]) of the Company (the “Registration Statement”)
to anyone other than: (i) Aegis Capital Corp. (“Aegis”) or an underwriter or a selected dealer participating
in the Offering, or (ii) a bona fide officer or partner of Aegis or of any such underwriter or 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 that date that
is 180 days after the effective date of the Registration Statement, 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 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 Act and applicable state securities laws, the availability of which is established to the reasonable satisfaction of
the Company, 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.

 

    	- 2 -

    	 

    

 

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 one year after the effective date of the Registration Statement. 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.

 

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 Commencement
Date 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 four (4) years commencing one year after the effective date of the Registration Statement, 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 promulgated under the 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.

 

    	- 3 -

    	 

    

 

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.

 

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 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 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 Underwriters contained in Section 7(a) of the Underwriting Agreement between the Underwriters and the Company, dated as of
[·], 2013. The Holder(s) of the Registrable Securities to be sold pursuant to such
registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, 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 they may become subject under the Act, the Exchange
Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing,
for specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in
Section [·] of the Underwriting Agreement pursuant to which the Underwriters have
agreed to indemnify the Company.

 

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.

 

    	- 4 -

    	 

    

 

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 Section 4.1 and Section 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 hereof, 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.

 

    	- 5 -

    	 

    

 

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 Section 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 Section 6.1.2, then such adjustment shall be made pursuant to Section 6.1.1, Section 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 6 shall similarly apply to successive consolidations
or share reconstructions or amalgamations.

 

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.

 

    	- 6 -

    	 

    

 

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 (the “Notice
Date”) 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.

 

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 (1) when hand delivered, (2) when mailed by express mail or private courier service or (3) when
the event requiring notice is disclosed in all material respects and filed in a current report on Form 8-K or in a definitive
proxy statement on Schedule 14A prior to the Notice Date: (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:

 

    	- 7 -

    	 

    

 

If to the Holder:

 

Aegis Capital Corp.

810 Seventh Avenue, 18th 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:

 

Blank Rome LLP

405 Lexington Avenue

New York, NY 10174

Attn: Brad Shiffman, Esq.

Fax No: (917) 332-3725

 

If to the Company:

 

Akers Biosciences, Inc.

201 Grove Road

Thorofare, New Jersey USA 08086

Attention: Thomas A. Nicolette, Chief Executive
Officer

Fax No: [INSERT]

 

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

 

Lucosky Brookman LLP

101 Wood  Avenue South, 5th
Fl

Woodbridge, NJ 08830

Attention: Joseph Lucosky, Esq.

Fax No: [INSERT]

 

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.

 

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.

 

    	- 8 -

    	 

    

 

9.5            Governing
Law; Submission to Jurisdiction. This Purchase Warrant shall be governed by and construed and enforced in accordance with the
laws of the State of [Delaware], 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.

 

[Remainder of page
intentionally left blank.]

 

    	- 9 -

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the ____ day of _______, 2013.

 

	 	AKERS BIOSCIENCES, INC.	 
	 	 	 

	 	By:	 	 

	 	 	Name: 
	 	 	Title: 

 

    	- 10 -

    	 

    

 

Form to be used to
exercise Purchase Warrant:

 

Date: __________, 20___

 

The undersigned hereby
elects irrevocably to exercise the Purchase Warrant for ______ Shares of Akers Biosciences, Inc., a New Jersey 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 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

    	- 11 -

    	 

    

 

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.

    	- 12 -

    	 

    

 

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 Akers Biosciences, Inc., a New Jersey 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.

 

    	- 13 -

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