Document:

Exhibit

PREFERRED APARTMENT COMMUNITIES, INC.
Articles Supplementary
Series M Redeemable Preferred Stock
PREFERRED APARTMENT COMMUNITIES, INC., a Maryland corporation (the "Corporation"), hereby certifies to the State Department of Assessments and Taxation of Maryland that:
FIRST:  Under a power contained in Article VI of the charter of the Corporation (the "Charter"), the Board of Directors by duly adopted resolutions classified and designated 500,000 shares of authorized but unissued Preferred Stock (as defined in the Charter) as Series M Redeemable Preferred Stock, with the following preferences, rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms and conditions of redemption, which, upon any restatement of the Charter, shall become part of Article VI of the Charter, with any necessary or appropriate renumbering or relettering of the sections or subsections hereof.
Series M Redeemable Preferred Stock
1.Designation and Number.  A series of Preferred Stock, designated as the Series M Redeemable Preferred Stock ("mShares"), is hereby established.  There shall be 500,000 mShares.

2.Definitions.  In addition to the capitalized terms elsewhere defined herein, the following terms, when used herein, shall have the meanings indicated:
(a)"NYSE" shall mean the New York Stock Exchange.

(b)"Person" shall mean any company, limited liability company, partnership, trust, organization, association, other entity or individual.

(c)"Trading Day" shall mean, (i) if the Common Stock (as defined in the Charter) is listed or admitted to trading on the NYSE, a day on which the NYSE is open for the transaction of business, (ii) if the Common Stock is not listed or admitted to trading on the NYSE but is listed or admitted to trading on another national securities exchange or automated quotation system, a day on which the principal national securities exchange or automated quotation system, as the case may be, on which the Common Stock is listed or admitted to trading is open for the transaction of business, or (iii) if the Common Stock is not listed or admitted to trading on any national securities exchange or automated quotation system, any day other than a Saturday, a Sunday or a day on which banking institutions in the State of New York are authorized or obligated by law or executive order to close.

(d)"VWAP" shall mean, for any Trading Day, the volume-weighted average price, calculated by dividing the aggregate value of Common Stock traded on the NYSE during regular hours (price per share multiplied by number of shares traded) by the total volume (number of shares) of Common Stock traded on the NYSE for such Trading Day, or if such volume-weighted average price is unavailable, the market value of one share of Common Stock on such Trading Day as determined by the Board of Directors in a commercially reasonable manner, using a volume-weighted average price method.

3.Rank. mShares shall, with respect to rights to the payment of dividends and the distribution of assets upon the liquidation, dissolution or winding up of the Corporation, rank (a) senior to all classes or series of Common Stock and any other class or series of stock of the Corporation the terms of which specifically provide that the holders of mShares are entitled to receive dividends or amounts distributable upon the liquidation, dissolution or winding up of the Corporation in preference or priority to the holders of shares of such class or series (the "Junior Stock"); (b) on a parity with the Corporation's Series A Redeemable Preferred Stock, par value $0.01 per share, and any other class or series of stock of the Corporation the terms of which specifically provide that the holders of such class or series of stock and the mShares are entitled to receive dividends and amounts distributable upon the liquidation, dissolution or winding up of the Corporation in proportion to their respective amounts of accumulated, accrued and unpaid dividends per share or liquidation preferences, without preference or priority of one over the other (the "Parity Stock"); and (c) junior to any class or series of stock of the Corporation the terms of which specifically provide that the holders of such class or series are entitled to receive dividends or amounts distributable upon the liquidation, dissolution or winding up of the Corporation in preference or priority to the holders of mShares (the "Senior Stock").

4.Dividends.

(a)Subject to the preferential rights of holders of any class or series of Senior Stock, holders of mShares shall be entitled to receive, when and as authorized by the Board of Directors and declared by the Corporation, out of funds legally available for the payment of dividends, cash dividends at an initial rate of 5.75% per annum (the "Dividend Rate") of the initial stated value of $1,000 per share (the "Stated Value").  Beginning one year from the date of original issuance of each mShare, and on each one year anniversary thereafter for such mShare, the Dividend Rate shall increase by 0.25% per annum for such mShare; provided, however, that the Dividend Rate for any mShares shall not exceed seven and one half percent (7.5%) per annum  The dividends on each mShare shall be cumulative from the first date on which such mShare is issued and shall be payable monthly on the 20th day of the month following the month for which the dividend was declared or, if not a business day, the next succeeding business day (each, a "Dividend Payment Date").  Any dividend payable on an mShare for any partial dividend period shall be computed ratably on the basis of a 360-day year consisting of twelve 30-day months.  Dividends shall be payable in arrears to holders of record as they appear in the stock records of the Corporation at the close of business on the applicable record date (the "Dividend Record Date") at least 15 days preceding the applicable Dividend Payment Date.  The term "business day" shall mean any day, other than Saturday, Sunday, or a day on which banking institutions in the State of New York are authorized or obligated by law to close, or a day which is or is declared a national or a New York state holiday.

(b)Holders of mShares shall not be entitled to any dividends in excess of cumulative dividends, as herein provided, on the mShares.

(c)No interest, or sum of money in lieu of interest, shall be payable in respect of any dividend payment or payments on mShares that may be in arrears.

(d)When dividends are not paid in full upon mShares or any other class or series of Parity Stock, or a sum sufficient for such payment is not set apart, all 

dividends declared upon mShares and any shares of Parity Stock shall be declared ratably in proportion to the respective amounts of dividends accumulated, accrued and unpaid on the mShares and accumulated, accrued and unpaid on such Parity Stock (which shall not include any accumulation in respect of unpaid dividends for prior dividend periods if such Parity Stock does not have a cumulative dividend).

(e)Except as set forth in the preceding paragraph, unless full cumulative dividends equal to the full amount of all accumulated, accrued and unpaid dividends on the mShares have been, or are concurrently therewith, declared and paid, or declared and set apart for payment, for all past dividend periods, no dividends (other than dividends or distributions paid in shares of Junior Stock or options, warrants or rights to subscribe for or purchase shares of Junior Stock) shall be declared and paid or declared and set apart for payment by the Corporation and no other distribution of cash or other property may be declared and made, directly or indirectly, by the Corporation with respect to any shares of Junior Stock or Parity Stock, nor shall any shares of Junior Stock or Parity Stock be redeemed, purchased or otherwise acquired (other than a redemption, purchase or other acquisition of Common Stock made for purposes of an equity incentive or benefit plan of the Corporation) for any consideration (or any monies be paid to or made available for a sinking fund for the redemption of any shares of any such stock), directly or indirectly, by the Corporation (except by conversion into or exchange for shares of Junior Stock, or options, warrants or rights to subscribe for or purchase shares of Junior Stock), nor shall any other cash or other property be paid or distributed to or for the benefit of holders of shares of Junior Stock or Parity Stock.

(f)Notwithstanding the foregoing provisions of this Section 4, the Corporation shall not be prohibited from (i) declaring or paying or setting apart for payment any dividend or other distribution on any shares of Junior Stock or Parity Stock, or (ii) redeeming, purchasing or otherwise acquiring any Junior Stock or Parity Stock, in each case, if such declaration, payment, setting apart for payment, redemption, purchase or other acquisition is necessary in order to maintain the continued qualification of the Corporation as a real estate investment trust ("REIT") under Section 856 of the Code (as defined in the Charter).

5.        Liquidation Preference.

a.Upon any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, before any payment or distribution by the Corporation shall be made to or set apart for the holders of any shares of Junior Stock, the holders of mShares shall be entitled to be paid out of the assets of the Corporation that are legally available for distribution to the stockholders, a liquidation preference equal to the Stated Value per share (the "Liquidation Preference"), plus an amount equal to all accumulated, accrued and unpaid dividends (whether or not declared) to and including the date of payment.  Until the holders of mShares have been paid the Liquidation Preference in full, plus an amount equal to all accumulated, accrued and unpaid dividends (whether or not earned or declared) to the date of final distribution to such holders, no payment will be made to any holder of Junior Stock upon the liquidation, dissolution or winding up of the Corporation.  If upon the voluntary or involuntary liquidation, dissolution 

or winding up of the Corporation, the available assets of the Corporation, or proceeds thereof, distributable among the holders of mShares shall be insufficient to pay in full the above described Liquidation Preference and the liquidating payments on any shares of any class or series of Parity Stock, then such assets, or the proceeds thereof, shall be distributed among the holders of mShares and any such Parity Stock ratably in the same proportion as the respective amounts that would be payable on such mShares and any such Parity Stock if all amounts payable thereon were paid in full.  After payment of the full amount of the Liquidation Preference to which they are entitled, the holders of mShares shall have no right or claim to any of the remaining assets of the Corporation.

b.Upon any liquidation, dissolution or winding up of the Corporation, after payment shall have been made in full to the holders of mShares and any Parity Stock, the holders of any classes or series of Junior Stock shall be entitled to receive any and all assets of the Corporation remaining to be paid or distributed, and the holders of mShares and any Parity Stock shall not be entitled to share therein.
c.The consolidation or merger of the Corporation with or into any other corporation, trust or entity or of any other corporation, trust or entity with or into the Corporation, or the sale or transfer of all or substantially all of the assets or business of the Corporation or a statutory share exchange, shall not be deemed to constitute a voluntary or involuntary liquidation, dissolution or winding up of the Corporation.
d.In determining whether a distribution (other than upon voluntary or involuntary liquidation), by dividend, redemption or other acquisition of shares of stock of the Corporation or otherwise, is permitted under the Maryland General Corporation Law, amounts that would be needed, if the Corporation were to be dissolved at the time of distribution, to satisfy the preferential rights upon dissolution of holders of mShares shall not be added to the Corporation’s total liabilities.

6.    Redemption by the Corporation.

a.An mShare is not redeemable by the Corporation prior to the tenth anniversary of the date of original issuance of such mShare to be redeemed.  However, in order to ensure that the Corporation remains qualified as a REIT under Section 856 of the Code, mShares shall be subject to the provisions of Section 4.04 of the Charter.  Pursuant to Section 4.04 of the Charter, and without limitation of any provisions of such Section 4.04, mShares, together with all other Shares (as defined in the Charter), owned by a stockholder in excess of the Aggregate Share Ownership Limit (as defined in the Charter) will automatically be transferred to a Trust (as defined in the Charter) for the benefit of a Charitable Beneficiary (as defined in the Charter) and the Corporation shall have the right to purchase such transferred shares from the Trust.  For this purpose, the Market Price (as defined in the Charter) of each mShare shall equal the Stated Value, plus an amount equal to all accumulated, accrued and unpaid dividends (whether or not earned or declared) to and including the date of purchase.

b.On and after the tenth anniversary of the date of original issuance of any mShares to be redeemed, the Corporation may, at its option, redeem such mShares, in whole or from time to time, in part, at a redemption price equal to 100% of the Stated Value per share, plus all accumulated, accrued and unpaid dividends, if any, to and including the date fixed for redemption (the "Redemption Date").
c.The Redemption Date shall be selected by the Corporation and shall be 30 days after the date on which the Corporation sends the notice of redemption.

d.If full cumulative dividends on all outstanding mShares have not been declared and paid or declared and set apart for payment for all past dividend periods, no mShares may be redeemed pursuant to this Section 6, unless all outstanding mShares are simultaneously redeemed, and neither the Corporation nor any of its affiliates may purchase or otherwise acquire mShares otherwise than pursuant to a purchase or exchange offer made on the same terms to all holders of mShares.

e.If fewer than all the outstanding mShares are to be redeemed pursuant to this Section 6, the Corporation shall select those shares to be redeemed pro rata or in such manner as the Board of Directors may determine.

f.Written notice as to the redemption of any mShares pursuant to this Section 6 shall be given by first class mail, postage pre-paid, to each such record holder of such mShares at the respective mailing addresses of each such holder as the same shall appear on the stock transfer records of the Corporation.  No failure to give such notice or any defect therein or in the mailing thereof shall affect the validity of the proceedings for the redemption of any such mShares except as to the holder to whom notice was defective or not given.

g.In addition to any information required by law or by the applicable rules of any exchange upon which mShares may then be listed or admitted to trading, such notice shall state:  (i) the Redemption Date; (ii) the redemption price payable on the Redemption Date, including without limitation a statement as to whether or not accumulated, accrued and unpaid dividends shall be payable as part of the redemption price, or payable on the next Dividend Payment Date to the record holder at the close of business on the relevant Dividend Record Date as described above; (iii) whether the redemption price will be paid in cash or Common Stock; and (iv) that dividends on the mShares to be redeemed will cease to accrue on such Redemption Date.  If less than all the mShares held by any holder are to be redeemed, the notice mailed to such holder also shall specify the number of mShares held by such holder to be redeemed.

h.If notice of redemption of any mShares has been given and if the funds necessary for such redemption have been set apart by the Corporation for the benefit of the holders of any mShares so called for redemption, then, from and after the Redemption Date, dividends will cease to accrue on such mShares, such mShares shall be redeemed in accordance with the notice and shall no longer be deemed outstanding and all rights of the holders of such mShares will terminate, except the right to receive the cash or Common Stock payable upon such 

redemption without interest thereon.  No further action on the part of the holders of such mShares shall be required.

i.Subject to applicable law and the limitation on purchases when dividends on mShares are in arrears, the Corporation may, at any time and from time to time, purchase or otherwise acquire any mShares in the open market, by tender or by private agreement.

7.    Redemption at the Option of a Holder.

a.Subject to the provisions in this Section 7, each holder of mShares may deliver written notice to the Corporation requesting that the Corporation redeem each mShare, held by such holder for cash or equal value of Common Stock (as set forth in Section 9(a)) as follows:

i.Beginning on the date of original issuance of the mShares to be redeemed, the holder thereof will have the right to require the Corporation to redeem such mShares at a redemption price equal to 98% of the Stated Value, plus all accumulated, accrued and unpaid dividends.

ii.On and after the first anniversary of the date of original issuance of the mShares to be redeemed, the holder thereof will have the right to require the Corporation to redeem such mShares at a redemption price equal to 99% of the Stated Value, plus all accumulated, accrued and unpaid dividends.

iii.On and after the second anniversary of the date of original issuance of the mShares to be redeemed, the holder thereof will have the right to require the Corporation to redeem such mShares at a redemption price equal to 100% of the Stated Value, plus all accumulated, accrued and unpaid dividends.

b.If a holder of mShares requires the Corporation so to redeem such mShares pursuant to this Section 7, the holder shall be entitled to receive, in cash, an amount equal to all accumulated, accrued and unpaid dividends, if any, with respect to such mShares up to and including the respective redemption date of the mShares.
c.The obligation to redeem any mShares is limited to the extent that the Corporation does not have sufficient funds available to fund any such redemption or the Corporation is restricted by applicable law from making such redemption.

8.    [Reserved].

9.    Redemption Price.

a.The redemption price payable pursuant to any redemption pursuant to Section 6 or Section 7 shall be paid in cash or, at the election of the Corporation, 

in shares of Common Stock, based on the VWAP of the Common Stock for the 20 Trading Days immediately preceding the Redemption Date.
b.In the event of any redemption pursuant to Section 6 or Section 7, if the Redemption Date occurs after a Dividend Record Date and on or prior to the related Dividend Payment Date, the dividend payable on such Dividend Payment Date in respect of such shares called for redemption shall be payable on such Dividend Payment Date to the holders of record at the close of business on such Dividend Record Date, and shall not be payable as part of the redemption price for such shares.

10.    No Fractional Shares.  The Corporation shall not issue fractional shares of Common Stock upon any redemption pursuant to Section 6 or Section 7, but in lieu of fractional shares, the Corporation shall round up or down to the nearest whole number of shares of Common Stock to be issued.

11.    Appointment of Transfer Agent; Mechanics of Redemption.  

a.The Corporation shall maintain or cause to be maintained a register in which, subject to such reasonable regulations as it may prescribe, the Corporation shall provide for the registration of mShares and of transfers of mShares for the purpose of registering mShares and of transfers of mShares as herein provided. The initial registrar and transfer agent for the mShares shall be Computershare Trust Company, N.A.  The Corporation may appoint one or more additional transfer agents as it shall determine. The Corporation may change the transfer agent without prior notice to any holder.

b.If the Corporation elects to pay the redemption price in Common Stock pursuant to Section 9(a), the Corporation shall cause the transfer agent to, as soon as practicable, but not later than three (3) business days after the effective date of such redemption, register the number of shares of Common Stock to which such holder shall be entitled as a result of such redemption.  The Person or Persons entitled to receive the shares of Common Stock issuable upon such redemption shall be treated for all purposes as the record holder or holders of such shares of Common Stock as of the effective date of such redemption.

12.    Reservation of Shares.

a.The Corporation shall reserve and shall at all times have reserved out of its authorized but unissued shares of Common Stock, a sufficient number of shares of Common Stock to permit any redemption pursuant to Section 6 or Section 7 of the then outstanding mShares.  All shares of Common Stock when issued upon redemption of mShares shall be validly issued, fully paid and nonassessable.

b.Any mShares that shall at any time have been redeemed pursuant to Section 6 or Section 7 or otherwise acquired by the Corporation shall, after such redemption or acquisition, have the status of authorized but unissued Preferred Stock, without designation as to class or series until such shares are once more classified and designated as part of a particular class or series by the Board of Directors.

13.    Adjustments.  If a redemption of any mShares pursuant to Section 6 or Section 7 occurs less than 20 Trading Days after the Corporation: (i) declaring a dividend or making a distribution on the Common Stock payable in Common Stock, (ii) subdividing or splitting the outstanding Common Stock, (iii) combining or reclassifying the outstanding Common Stock into a smaller number of shares or (iv) consolidating with, or merging with or into, any other Person, or engaging in any reorganization, reclassification or recapitalization that is effected in such a manner that the holders of Common Stock are entitled to receive stock, securities, cash or other assets with respect to or in exchange for Common Stock (other than as a cash dividend or distribution declared by the Corporation), the Stated Value shall be adjusted so that the redemption of the mShares less than 20 Trading Days after such event shall entitle the holder to receive the aggregate number of shares of Common Stock or cash which, if the mShares had been redeemed immediately prior to such event, such holder would have owned upon such redemption and been entitled to receive by virtue of such dividend, distribution, subdivision, split, combination, consolidation, merger, reorganization, reclassification or recapitalization.  

14.    Voting Rights.  Holders of mShares shall not have any voting rights.

15.    Conversion.  mShares are not convertible into or exchangeable for any other property or securities of the Corporation.

SECOND:  mShares have been classified and designated by the Board of Directors under the authority contained in the Charter.
THIRD:  These Articles Supplementary have been approved by the Board of Directors in the manner and by the vote required by law.
FOURTH:  The undersigned acknowledges these Articles Supplementary to be the corporate act of the Corporation and, as to all matters or facts required to be verified under oath, the undersigned acknowledges that, to the best of his knowledge, information and belief, these matters and facts are true in all material respects and that this statement is made under the penalties of perjury.

IN WITNESS WHEREOF, the Corporation has caused these Articles Supplementary to be signed in its name and on its behalf by its President and Chief Executive Officer and attested to by its Secretary on this 2nd day of November, 2016.
	
		
	ATTEST:
By:/s/ Jeffrey R. Sprain
Jeffrey R. Sprain
Secretary
	PREFERRED APARTMENT COMMUNITIES, INC.
By:/s/ John A. Williams(SEAL)
John A. Williams
President and Chief Executive Officerpacsubagreementmshare

PREFERRED APARTMENT COMMUNITIES |  SUBSCRIPTION AGREEMENT SECTION 1 : INVESTMENT Payment Instructions: Make all checks payable to “UMB BANK N.A., Escrow Agent for Preferred Apartment Communities, Inc.” or wire funds to the instructions in Section 7, Page 5. mSharesSM SUBSCRIPTION AGREEMENT  Number of mShares purchased: Account #: (if applicable) Purchase price per mShare:        $ Aggregate purchase price:         $ Check here if additional purchase and complete the investor information in section 3 : Minimum initial investment of at least $5,000. No fractional shares will be issued. 1/5 Preferred Apartment Communities, Inc., is selling up to a maximum of 500,000 mShares in connection with this offering (the ‘‘Offering’’). Each mShare will be sold at a public offering price of $1,000 per mShare. This agreement is to be completed by the individual at the broker-dealer who will be signing the subscription agreement. ALL sections MUST be completed and legible. Write/Type “N/A” in the sections that are not applicable. SECTION 2 : ACCOUNT TYPE THIRD PARTY ADMINISTERED CUSTODIAL PLAN - (New IRA accounts will require an additional application) Individual Trust Estate Custodial Corporation LLC Partnership Non-Profit Organization Profit Sharing Plan Traditional IRA Defined Benefit Plan SEP IRA ROTH IRA KEOGH Plan Simple IRA Other (Specify) Inherited/Beneficial IRA C Corp S Corp Joint Tenants WROS Community Property TOD TODTenants in Common ACCOUNT TYPE ADDITIONAL REQUIRED DOCUMENTATION CUSTODIAL OWNERSHIP: For All Qualified Accounts Check one Box Only If TOD, Transfer on Death form Trustee Certification form or trust documents Articles of Incorporation or Corporate Resolution LLC Operating Agreement or LLC Resolution Formation document or other document  evidencing authorized signers Pages of plan document that list plan name, date, trustee name(s) and signatures * Complete Custodial Ownership below For Inherited IRA indicate Decedent’s name: Partnership Certification of Powers or Certificare of  Limited Partnership None. Documents evidencing individuals authorized to act  on behalf of estate If TOD, Transfer on Death form UGMA: State of UTMA: State of Name of Custodian: Mailing Address: City, State, ZIP: Custodian Tax ID#: Custodian Account#: Custodian Phone#: CUSTODIAN INFORMATION (To be completed by Custodian above) For help completing this form please call the sales desk at 855-320-1414.

 

PREFERRED APARTMENT COMMUNITIES |  SUBSCRIPTION AGREEMENT Date of Trust: Entity Name/ Title of Trust City: Bank Name: Bank Phone#: U.S Driver’s License Employee Authorization Document INS Permanent Resident Alien Card Foreign National Identity Documents Passport without U.S. Visa Passport with U.S. Visa Trustee’s information must be provided in Sections 3A and 3B Identification documents must have a reference number and photo. Please attach photocopy. PLACE OF BIRTH IMMIGRATION STATUS C. TRUST/CORPORATION/PARTNERSHIP/OTHER D. GOVERNMENT ID (FOREIGN CITIZENS ONLY) 2/5 A. INVESTOR/TRUSTEE SECTION 3 : INVESTOR INFORMATION Please print name(s) in which mShares are to be registered. B. CO-INVESTOR/CO-TRUSTEE Tax ID #: State/Providence: Country: Account#: Country of Issuance: Bank Address: Number for the document checked above: First Name: Middle Name: Last Name: Tax ID or SS#: Street Address: City: State: ZIP: Daytime Phone# Email  address: Date of Birth: Employer: Retired: If Non-U.S. Citizen, specify Country  of Citizenship: First Name: Middle Name: Last Name: Tax ID or SS#: Street Address: City: State: ZIP: Daytime Phone# Email  address: Date of Birth: Employer: Retired: If Non-U.S. Citizen, specify Country  of Citizenship: For help completing this form please call the sales desk at 855-320-1414.

 

PREFERRED APARTMENT COMMUNITIES |  SUBSCRIPTION AGREEMENT Owner Signature Co-Owner Signature Please Attach Copy Of Voided Check To This Form If Funds Are To Be Sent To A Bank * The above services cannot be established without a pre-printed voided check. For electronic funds transfers, signatures of bank account owners are required exactly as they appear on the bank records. If the registration at the bank differs from that on this Subscription Agreement, all parties must sign below. Date: Date: (if applicable) Name/Entity Name/ Financial Institution: I authorize Preferred Apartment Communities, Inc. or its agent to deposit my distribution/dividend to my checking or savings account. This authority will remain in force until I notify Preferred Apartment Communities, Inc. in writing to cancel. If Preferred Apartment Communities, Inc. deposits funds erroneously into my account, they are authorized to debit my account for an amount not to exceed the amount of the erroneous deposit. Mailing Address: City: State: ZIP: Phone #: Checking Account Savings Account Brokerage Account ABA/Routing#:Your Account#: 3/5 SECTION 4 : DISTRIBUTIONS Select only one; if nothing is marked the distributions will default to Mail Check (to the Address of Record) Complete this section to elect how to receive your dividend distributions. IRA accounts may not direct distributions without the custodian’s approval. I hereby subscribe for MShares of Preferred Apartment Communities, Inc. and elect the distribution option indicated below: For Custodial Accounts all distributions will be sent via check directly to the Custodian as listed in Section 2 For Non-Custodial Or Non-Clearing Firm/Platform Accounts: Credit Dividend to Custodian (including IRA) or Clearing Firm/Platform of Record Mail Check (to the Address of Record) Cash/Direct Deposit (Please attach a pre-printed voided check (Non-Custodian Investors only) Bobby Bankrate 123 Bankrate Boulevard New York, NY 10001 555-555-5555 Pay to the order of: Memo: DOLLARS $ Generic Bank and Trust Date: |:123456789 |:10987654321 |:1111 1111 Contains Security Features. Details on Back Attach Check Here For help completing this form please call the sales desk at 855-320-1414. Routing Number Account Number Check Number

 

PREFERRED APARTMENT COMMUNITIES |  SUBSCRIPTION AGREEMENT 4/5 Once your account is established go to www.computershare.com/investor and sign up for electronic communication and you’ll help us save trees by reducing paper. WE INTEND TO ASSERT THE FOREGOING REPRESENTATIONS AS A DEFENSE IN ANY SUBSEQUENT LITIGATION WHERE SUCH ASSERTION WOULD BE RELEVANT. WE HAVE THE RIGHT TO ACCEPT OR REJECT THIS SUBSCRIPTION IN WHOLE OR IN PART, SO LONG AS SUCH PARTIAL ACCEPTANCE OR REJECTION DOES NOT RESULT IN AN INVESTMENT OF LESS THAN THE MINIMUM AMOUNT SPECIFIED IN THE PROSPECTUS. AS USED ABOVE, THE SINGULAR INCLUDES THE PLURAL IN ALL RESPECTS IF MSHARES ARE BEING ACQUIRED BY MORE THAN ONE PERSON. THIS SUBSCRIPTION AGREEMENT AND ALL RIGHTS HEREUNDER SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICT OF LAWS. By executing this Subscription Agreement, the subscriber is not waiving any rights under federal or state law. I have received, read and understand the Registration Statement (Registration No. 333-211924), as modified or amended, including the related Prospectus and Charter for this offering and annual and periodic reports filed with the SEC (incorporated by reference into the registration statement and prospectus) wherein the terms, conditions and risks of the offering are described and agree to be bound  by the terms and conditions. I am purchasing mShares for my/our own account. I am in compliance with the USA PATRIOT Act and not on any governmental authority watch list. Owner Co-Owner(a) (b) (c) Form W-9: I HEREBY CERTIFY under penalty of perjury, I certify that: (i) that the taxpayer identification number shown on the Subscription is correct (ii) that I am not subject to backup withholding because (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and (iii) I am a U.S. citizen or other U.S. person (including a U.S. resident alien). (iv) The FATCA code(s) entered on this for (if any) indicating that I am exempt from FATCA reporting is correct. Certification Instructions: You must cross out item (ii) above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. The Internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding. Authorized Signature Signature of Custodian(s) or Trustee(s) (if applicable). Current Custodian must sign if investment is for an IRA Account (Custodian or Trustee) SECTION 5 : SUBSCRIBER ACKNOWLEDGMENTS AND SIGNATURES Owner Signature Co-Owner Signature Date: Date: Date: (if applicable) The undersigned hereby confirms this agreement to purchase the mShares on the terms and conditions set forth herein and acknowledges and/or represents (or in the case of fiduciary accounts, the person authorized to sign on such subscriber’s behalf) the following: (you must initial each of the representations below) For help completing this form please call the sales desk at 855-320-1414.

 

PREFERRED APARTMENT COMMUNITIES |  SUBSCRIPTION AGREEMENT The Financial Advisor must sign below to complete order. The Financial Advisor hereby represents and warrants that he/she is duly licensed and may lawfully sell mShares of Preferred Apartment Communities, Inc. Financial Advisor CRD: Mailing Address: City: Email Address: Broker-Dealer CRD#: Advisor#: State: Zip: Business Phone# Fax#: Broker Dealer/RIA: SECTION 6 :  FINANCIAL ADVISOR INFORMATION All fields must be completed 5/5 For help completing this form please call the sales desk at 855-320-1414. The undersigned further represents and certifies that in connection with this subscription for mShares, he/she has complied with and has followed all applicable policies and procedures under his firm’s existing Anti-Money Laundering Program and Customer Identification Program. Financial Advisor Signature: Date: Branch Manager and /or RIA Signature: Date: SECTION 7 :  PAYMENT INSTRUCTIONS Note: Cash, Cashier’s checks/official bank checks in bearer form, foreign checks, money orders, third party checks or traveler’s checks will not be accepted. SUBMISSION: Mail the ORIGINAL documents, along with your check payable to ‘‘UMB Bank N.A., Escrow Agent for Preferred Apartment Communities, Inc.’’ to the below address. Wires are to use the below wiring instructions. CHECKS & DOCUMENTS UMB Bank, National  Association 1010 Grand Boulevard, 4th Floor Mail Stop: 1020409 Kansas City, Missouri 64106 Attention: Lara Stevens,  Corporate Trust Phone: (816) 860-3017 Fax: (816) 860-3029 WIRE INSTRUCTIONS UMB Bank, N.A. ABA No: 101000695 Acct No: 9800006823 Acct Name: Trust  Clearance Reference: 138242  Preferred Apt  Communities Attn: Lara Stevens Financial Advisor Name:

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