Document:

SUPERTEL 2006 STOCK PLAN

 Exhibit 10.1 
 SUPERTEL 2006 STOCK PLAN 
 SECTION 1 
 NAME AND PURPOSE 
 1.1 Name. The name of the plan shall be the Supertel
2006 Stock Plan (the “Plan”). 
 1.2. Purpose of Plan. The purpose of the Plan is to foster and promote the long-term
financial success of the Company and increase stockholder value by (a) motivating superior performance by means of stock incentives, (b) encouraging and providing for the acquisition of an ownership interest in the Company by Employees and
Directors and (c) enabling the Company to attract and retain the services of a management team responsible for the long-term financial success of the Company. 
 SECTION 2 
 DEFINITIONS 
 2.1 Definitions. Whenever used herein, the following terms shall have the respective meanings set forth below: 
  

	 	(a)	“Act” means the Securities Exchange Act of 1934, as amended. 

  

	 	(b)	“Award” means any Option, Stock Appreciation Right, Restricted Stock, Stock Bonus, or any combination thereof, including Awards combining two or more types of Awards in a
single grant. 

  

	 	(c)	“Board” means the Board of Directors of the Company. 

  

	 	(d)	“Code” means the Internal Revenue Code of 1986, as amended. 

  

	 	(e)	“Committee” means the Compensation Committee of the Board, which shall consist of two or more members, each of whom shall be a “non-employee director” within the
meaning of Rule 16b-3 as promulgated under the Act. 

  

	 	(f)	“Company” means Supertel Hospitality, Inc., a Virginia corporation (and any successor thereto) and its Subsidiaries. 

  

	 	(g)	“Director” means any director of the Company. 

  

	 	(h)	“Employee” means any employee of the Company or any of its Subsidiaries. 

  

	 	(i)	“Fair Market Value” means, on any date, the average of the high and low sales prices of the Stock as reported on the National Association of Securities Dealers Automated
Quotation system (or on such other recognized market or quotation 

 system on which the trading prices of the Stock are traded or quoted at the relevant time) on such date.
In the event that there are no Stock transactions reported on such system (or such other system) on such date, Fair Market Value shall mean the average of the high and low sale prices on the immediately preceding date on which Stock transactions
were so reported. 
  

	 	(j)	“Option” means the right to purchase Stock at a stated price for a specified period of time. For purposes of the Plan, an Option may be either (i) an Incentive Stock
Option within the meaning of Section 422 of the Code or (ii) a Nonstatutory Stock Option. 

  

	 	(k)	“Participant” means any Employee or Director designated by the Committee to participate in the Plan. 

  

	 	(l)	“Plan” means the Supertel 2006 Stock Plan, as in effect from time to time. 

  

	 	(m)	“Restricted Stock” shall mean a share of Stock granted to a Participant subject to such restrictions as the Committee may determine. 

  

	 	(n)	“Stock” means the Common Stock of the Company, par value $.01 per share. 

  

	 	(o)	“Stock Appreciation Right” means the right, subject to such terms and conditions as the Committee may determine, to receive an amount in cash or Stock, as determined by
the Committee, equal to the excess of (i) the Fair Market Value, as of the date such Stock Appreciation Right is exercised, of the number shares of Stock covered by the Stock Appreciation Right being exercised over (ii) the aggregate
exercise price of such Stock Appreciation Right. 

  

	 	(p)	“Stock Bonus” means the grant of Stock as compensation from the Company, which may be in lieu of cash compensation otherwise receivable by the Participant or in addition
to such cash compensation. 

  

	 	(q)	“Subsidiary” means any corporation or partnership in which the Company owns, directly or indirectly, 50% or more of the total combined voting power of all classes of stock
of such corporation or of the capital interest or profits interest of such partnership. 

 2.2 Gender and Number. Except
when otherwise indicated by the context, words in the masculine gender used in the Plan shall include the feminine gender, the singular shall include the plural, and the plural shall include the singular. 

 SECTION 3 
 ELIGIBILITY AND PARTICIPATION 
 The only persons eligible to participate in the Plan shall be those
Employees and Directors selected by the Committee as Participants. 
 SECTION 4 
 POWERS OF THE COMMITTEE 
 4.1 Power to Grant. The Committee shall
determine the Participants to whom Awards shall be granted, the type or types of Awards to be granted, and the terms and conditions of any and all such Awards. The Committee may establish different terms and conditions for different types of Awards,
for different Participants receiving the same type of Awards, and for the same Participant for each Award such Participant may receive, whether or not granted at different times. 
 4.2 Administration. The Committee shall be responsible for the administration of the Plan. The Committee, by majority action thereof, is
authorized to prescribe, amend, and rescind rules and regulations relating to the Plan, to provide for conditions deemed necessary or advisable to protect the interests of the Company, and to make all other determinations necessary or advisable for
the administration and interpretation of the Plan in order to carry out its provisions and purposes. Determinations, interpretations, or other actions made or taken by the Committee pursuant to the provisions of the Plan shall be final, binding, and
conclusive for all purposes and upon all persons. 
 SECTION 5 
 STOCK SUBJECT TO PLAN 
 5.1 Number. Subject to the provisions of
Section 5.3, the number of shares of Stock subject to Awards under the Plan may not exceed 200,000 shares of Stock. The shares to be delivered under the Plan may consist, in whole or in part, of treasury Stock or authorized but unissued Stock,
not reserved for any other purpose. The maximum number of shares of Stock with respect to which Awards may be granted to any one Participant under the Plan is 20% of the aggregate number of shares of Stock available for Awards under
Section 5.1. A maximum of 20% of the shares of Stock available for issuance under the Plan may be issued as Restricted Stock or Stock Bonuses. A maximum of 20% of the shares of Stock available for issuance under the Plan may be issued in the
aggregate to non-employee Directors. 
 5.2 Cancelled, Terminated or Forfeited Awards. Any shares of Stock subject to an Award which
for any reason are cancelled, terminated or otherwise settled without the issuance of any Stock shall again be available for Awards under the Plan. In the event that an Award is exercised through the delivery of Stock or in the event that
withholding tax liabilities arising from such Award are satisfied by the withholding of Stock by the Company, the number of shares available for Awards under the Plan shall be increased by the number of shares surrendered or withheld. 

 5.3 Adjustment in Capitalization. In the event of any Stock dividend or Stock split,
recapitalization (including, without limitation, the payment of an extraordinary dividend), merger, consolidation, combination, spin-off, distribution of assets to stockholders, exchange of shares, or other similar corporate change, (i) the
aggregate number of shares of Stock available for Awards under Section 5.1 and (ii) the number of shares and exercise price with respect to Options and the number, prices and dollar value of other Awards, may be appropriately adjusted by
the Committee, whose determination shall be conclusive. 
 SECTION 6 
 STOCK OPTIONS 
 6.1 Grant of Options. Options may be granted to
Participants at such time or times as shall be determined by the Committee. Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Nonstatutory Stock Options. The Committee shall have complete discretion
in determining the number of Options, if any, to be granted to a Participant. Each Option shall be evidenced by an Option agreement that shall specify the type of Option granted, the exercise price, the duration of the Option, the number of shares
of Stock to which the Option pertains, the exercisability (if any) of the Option in the event of death, retirement, disability or termination of employment, and such other terms and conditions not inconsistent with the Plan as the Committee shall
determine. 
 6.2 Option Price. Nonstatutory Stock Options and Incentive Stock Options granted pursuant to the Plan shall have an
exercise price which is not less than the Fair Market Value on the date the Option is granted. Options may not be repriced. 
 6.3
Exercise of Options. Options awarded to a Participant under the Plan shall be exercisable at such times and shall be subject to such restrictions and conditions as the Committee may impose, subject to the Committee’s right to accelerate
the exercisability of such Option in its discretion. Notwithstanding the foregoing, no Option shall be exercisable for more than ten years after the date on which it is granted. 
 6.4 Payment. The Committee shall establish procedures governing the exercise of Options, which shall require that written notice of exercise be
given and that the Option price be paid in full in cash or cash equivalents, including by personal check, at the time of exercise or pursuant to any arrangement that the Committee shall approve. The Committee may, in its discretion, permit a
Participant to make payment (i) by tendering, either by actual delivery of shares or by attestation, shares of Stock already owned by the Participant valued at its Fair Market Value on the date of exercise (if such Stock has been owned by the
Participant for at least six months) or (ii) by electing to have the Company retain Stock which would otherwise be issued on exercise of the Option, valued at its Fair Market Value on the date of exercise. As soon as practicable after receipt
of a written exercise notice and full payment of the exercise price, the Company shall deliver to the Participant a certificate or certificates representing the acquired shares of Stock. 

 6.5 Incentive Stock Options. Notwithstanding anything in the Plan to the contrary, no term of this
Plan relating to Incentive Stock Options shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be so exercised, so as to disqualify the Plan under Section 422 of the Code, or, without the consent
of any Participant affected thereby, to cause any Incentive Stock Option previously granted to fail to qualify for the Federal income tax treatment afforded under Section 421 of the Code. 
 SECTION 7 
 STOCK APPRECIATION RIGHTS 
 7.1 SAR’s In Tandem with Options. Stock Appreciation Rights may be granted to Participants in tandem with any Option granted under the Plan,
either at or after the time of the grant of such Option, subject to such terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine. Each Stock Appreciation Right shall only be exercisable to the extent
that the corresponding Option is exercisable, and shall terminate upon termination or exercise of the corresponding Option. Upon the exercise of any Stock Appreciation Right, the corresponding Option shall terminate. 
 7.2 Other Stock Appreciation Rights. Stock Appreciation Rights may also be granted to Participants separately from any Option, subject to such
terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine. 
 SECTION 8 
 RESTRICTED STOCK 
 8.1 Grant of
Restricted Stock. The Committee may grant Restricted Stock to Participants at such times and in such amounts, and subject to such other terms and conditions not inconsistent with the Plan as it shall determine. Each grant of Restricted Stock
shall be subject to such restrictions, which may relate to continued employment with the Company, performance of the Company, or other restrictions, as the Committee may determine. Each grant of Restricted Stock shall be evidenced by a written
agreement setting forth the terms of such Award. 
 8.2 Removal of Restrictions. The Committee may accelerate or waive such
restrictions in whole or in part at any time in its discretion. 

 SECTION 9 
 STOCK BONUSES 
 9.1 Grant of Stock Bonuses. The Committee may grant a Stock Bonus to a
Participant at such times and in such amounts, and subject to such other terms and conditions not inconsistent with the Plan, as it shall determine. 
 9.2 Effect on Compensation. The Committee may from time to time determine to grant a Stock Bonus in lieu of salary or cash bonuses otherwise payable to a Participant. 
 SECTION 10 
 AMENDMENT, MODIFICATION,
AND TERMINATION OF PLAN 
 10.1 General. The Board may from time to time amend, modify or terminate any or all of the provisions
of the Plan, subject to the provisions of this Section 10.1. The Board may not change the Plan in a manner which would prevent outstanding Incentive Stock Options granted under the Plan from being Incentive Stock Options without the consent of
the optionees concerned. Furthermore, the Board may not make any amendment which would (i) materially modify the requirements for participation in the Plan, (ii) increase the number of shares of Stock subject to Awards under the Plan or to
any one Employee pursuant to Section 5.1, or (iii) change the minimum exercise price for Stock Options as provided in Section 6.2, in each case without the consent and approval of the holders of a majority of the outstanding shares of
Stock entitled to vote thereon. No amendment or modification shall affect the rights of any Employee with respect to a previously granted Award, nor shall any amendment or modification affect the rights of any Eligible Director pursuant to a
previously granted Director Award. 
 10.2 Termination of Plan. No further Options shall be granted under the Plan subsequent to
December 31, 2015, or such earlier date as may be determined by the Board. 
 SECTION 11 
 MISCELLANEOUS PROVISIONS 
 11.1
Beneficiary Designation. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries (who may be named contingent or successively) to whom any benefit under the Plan is to be paid or by whom any right under the
Plan is to be exercised in case of his death. Each designation will revoke all prior designations by the same Participant shall be in a form prescribed by the Committee, and will be effective only when filed in writing with the Committee. In the
absence of any such designation, Awards outstanding at death may be exercised by the Participant’s surviving spouse, if any, or otherwise by his estate, subject to the terms and conditions of the Award. 
 11.2 No Guarantee of Employment or Participation. Nothing in the Plan shall interfere with or limit in any way the right of the Company or any
Subsidiary to terminate any Participant’s employment at any time, nor confer upon any Participant any right to continue in the employ of the Company or any Subsidiary. No Employee shall have a right to be selected as a Participant, or, having
been so selected, to receive any future Awards. 

 11.3 Tax Withholding. The Company shall have the power to withhold, or require a Participant remit
to the Company, an amount sufficient to satisfy federal, state, and local withholding tax requirements on any Award under the Plan, and the Company may defer issuance of Stock until such requirements are satisfied. The Committee may, in its
discretion, permit a Participant to elect, subject to such conditions as the Committee shall impose, (i) to have shares of Stock otherwise issuable under the Plan withheld by the Company or (ii) to deliver to the Company previously
acquired shares of Stock, in each case having a Fair Market Value sufficient to satisfy all or part of the Participant’s estimated total federal, state and local tax obligation associated with the transaction. 
 11.4 Change of Control. On the date of a Change of Control, all outstanding options and stock appreciation rights shall become immediately
exercisable and all restrictions with respect to Restricted Stock shall lapse. “Change of Control” shall mean: 
  

	 	(i)	The acquisition (other than from the Company) by any person, entity or “group”, within the meaning of Section 13(d)(3) or 14(d)(2) of the Act (excluding any
acquisition or holding by (i) the Company or its subsidiaries or (ii) any employee benefit plan of the Company or its subsidiaries which acquires beneficial ownership of voting securities of the Company) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Act) of 50% or more of either the then outstanding shares of common stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote generally in the election of
directors; or 

  

	 	(ii)	Individuals who, as of the date hereof, constitute the Board (as of the date hereof the “Incumbent Board”) cease for any reason to constitute at least a majority of the
Board, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for the election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be, for purposes of this Plan, considered as though such person were a member of the Incumbent Board; or 

  

	 	(iii)	Consummation of a reorganization, merger or consolidation, in each case, with respect to which persons who were the stockholders of the Company immediately prior to such
reorganization, merger or consolidation do not, immediately thereafter, own more than 50% of the combined voting power entitled to vote generally in the election of directors of the reorganized, merged or consolidated company’s then outstanding
voting securities, or a liquidation or dissolution of the Company or of the sale of all or substantially all of the assets of the Company. 

 11.5 Company Intent. The Company intends that the Plan comply in all respects with Rule 16b-3
under the Act, and any ambiguities or inconsistencies in the construction of the Plan shall be interpreted to give effect to such intention. 
 11.6 Requirements of Law. The granting of Awards and the issuance of shares of Stock shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or securities exchanges as may
be required. 
 11.7 Nontransferability of Awards. Except as otherwise provided by the Committee, Awards under the Plan are not
transferable, except by will or by the laws of descent and distribution. 
 11.8 Agreements with Company. An Award under the Plan
shall be subject to such terms and conditions, not inconsistent with the Plan, as the Committee may, in its sole discretion, prescribe. The terms and conditions of any Award to any Participant shall be reflected in such form of written agreement as
is determined by the Committee or its designee. 
 11.9 Effective Date. The Plan shall be effective upon its adoption by the Board
subject to approval by the affirmative vote of the holders of a majority of the shares of Stock present in person or by proxy at the 2006 stockholders’ meeting. 
 11.10 Governing Law. The Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Virginia.Membership Interest Purchase and Sale Agreement

 Exhibit 10.1 
  

 MEMBERSHIP INTEREST 
 PURCHASE AND SALE AGREEMENT 
 BY AND AMONG 
 PRIP 3700, LLC, 
 a Delaware limited
liability company 
 AS PURCHASER, 
 BRADLEY B. CHAMBERS, 
 a resident of the State of Indiana, and 
 BUCKINGHAM INVESTMENT CORPORATION, 
 an Indiana corporation 
 AS SELLERS 
 AND 
 SPRINGHURST HOUSING PARTNERS, LLC, 
 an Indiana limited liability company, 
 AS THE COMPANY 
 As of May 10, 2006 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE
	ARTICLE 1 PURCHASE AND SALE	  	1
	1.1	  	Agreement of Purchase and Sale of Membership Interest	  	1
	1.2	  	Company Property	  	1
	1.3	  	Property Defined	  	2
	1.4	  	Permitted Exceptions	  	2
	1.5	  	Purchase Price	  	2
	1.6	  	Payment of Purchase Price	  	2
	1.7	  	Deposit	  	2
		
	ARTICLE 2 TITLE AND SURVEY	  	3
	2.1	  	Commitment for Title Insurance; Survey	  	3
	2.2	  	Title to the Property	  	3
		
	ARTICLE 3 CLOSING	  	3
	3.1	  	Time and Place	  	3
	3.2	  	Sellers’ Obligations at Closing	  	4
	3.3	  	Purchaser’s Obligations at Closing	  	5
	3.4	  	Credits and Prorations	  	5
	3.5	  	Closing Costs	  	7
	3.6	  	Conditions Precedent to Obligation of Purchaser	  	7
	3.7	  	Conditions Precedent to Obligation of Sellers	  	8
	3.8	  	Certain Tax Definitions	  	9
		
	ARTICLE 4 REPRESENTATIONS, WARRANTIES AND COVENANTS	  	9
	4.1	  	 Representations and Warranties of Sellers Primarily Relating to the Membership
 Interest and the Company
	  	9
	4.2	  	Representations and Warranties of Sellers Primarily Relating to the Property	  	14
	4.3	  	Survival of Sellers’ Representations and Warranties	  	16
	4.4	  	Representations and Warranties of Purchaser	  	16
	4.5	  	Survival of Purchaser’s Representations and Warranties	  	17
	4.6	  	Indemnification by Sellers	  	17
	4.7	  	Covenants of Sellers	  	18
		
	ARTICLE 5 DEFAULT	  	21
	5.1	  	Default by Purchaser	  	21
	5.2	  	Default by Sellers	  	21
	5.3	  	Notice of Default; Opportunity to Cure	  	21
	5.4	  	Recoverable Damages	  	21
		
	ARTICLE 6 CASUALTY AND CONDEMNATION	  	22
	6.1	  	Casualty or Condemnation	  	22
	6.2	  	Notice of Condemnation or Casualty	  	22

  

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	ARTICLE 7 COMMISSIONS	  	22
	7.1	  	Representation and Indemnity	  	22
	7.2	  	Survival	  	23
		
	ARTICLE 8 MISCELLANEOUS	  	23
	8.1	  	Public Disclosure	  	23
	8.2	  	Assignment	  	23
	8.3	  	Notices	  	23
	8.4	  	Modifications	  	24
	8.5	  	Calculation of Time Periods	  	24
	8.6	  	Successors and Assigns	  	25
	8.7	  	Entire Agreement	  	25
	8.8	  	Further Assurances	  	25
	8.9	  	Counterparts	  	25
	8.10	  	Severability	  	25
	8.11	  	Applicable Law	  	25
	8.12	  	No Third Party Beneficiary	  	25
	8.13	  	Exhibits and Schedules	  	26
	8.14	  	Captions	  	26
	8.15	  	Construction	  	26
	8.16	  	Termination of Agreement	  	26
	8.17	  	Survival	  	26
	8.18	  	Time of Essence	  	26

  

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 MEMBERSHIP INTEREST PURCHASE AND SALE AGREEMENT 
 THIS MEMBERSHIP INTEREST PURCHASE AND SALE AGREEMENT (this “Agreement”) is made as of May 10, 2006 (the “Effective
Date”), by and among PRIP 3700, LLC, a Delaware limited liability company (“Purchaser”), BRADLEY B. CHAMBERS, a resident of the State of Indiana and BUCKINGHAM INVESTMENT CORPORATION, an Indiana
corporation (collectively, “Sellers”), and SPRINGHURST HOUSING PARTNERS, LLC, an Indiana limited liability company (the “Company”). 
 WITNESSETH: 
 ARTICLE 1 
 PURCHASE AND SALE 
 1.1 Agreement of Purchase and Sale of
Membership Interest. Subject to the terms and conditions hereinafter set forth, Sellers agree to sell, transfer, assign, set over and convey, or cause to be conveyed, to Purchaser on the Closing Date (as hereinafter defined), and Purchaser
hereby agrees to purchase from Sellers on the Closing Date, such right, title and interest of Sellers in and to their membership interests, and all other legal and equitable interests in the Company, such that following said transfer Purchaser shall
own 70% of all legal and equitable interests in the Company, free and clear of any and all liens, encumbrances and other interests (collectively, the “Membership Interest”). 
 1.2 Company Property. Seller represents and warrants to Purchaser that the Company owns the following: 
 (a) that certain tract or parcel of land located in Louisville, Jefferson County, Kentucky, and more particularly described on Schedule
1.2(a), attached hereto and by this reference made a part hereof (the property described in this clause (a) being herein referred to as the “Land”), together with any rights, easements and appurtenances pertaining to the
Land; 
 (b) the structures and other improvements (if any) on the Land (the property described in this clause (b) being
herein referred to as the “Improvements”, and the Land and the Improvements being hereinafter sometimes collectively referred to as the “Real Property”); 
 (c) all of the right, title and interest in, to and under all tangible personal property upon the Land or within the Improvements,
including specifically, without limitation, appliances, equipment, furniture, carpeting, draperies and curtains, tools and supplies, and other items of tangible personal property owned by the Company and used exclusively in connection with the
ownership, use, maintenance or operation of the Land and the Improvements, and including those items of tangible personal property identified 

 
on Schedule 1.2(c), attached hereto and incorporated herein by this reference, but excluding (i) personal property owned by tenants under the
Leases, (ii) any equipment installed by, or in connection with, any telecommunication or utility provider and which is owned by any party other than the Company, and (iii) any items leased to the Company (the property described in this
clause (c), other than the excluded items, being herein referred to collectively as the “Tangible Personal Property”). 
 (d) all of the right, title and interest as landlord or lessor in, to and under all agreements listed and described on Schedule 1.2(d) (the “Rent Roll”) attached hereto and made a part hereof,
pursuant to which any portion of the Land or Improvements is used or occupied by anyone other than the Company (the property described in this clause (d) being herein referred to collectively as the “Leases”); 
 (e) all right, title and interest as the owner in, to and under (i) the contracts listed and described on Schedule 1.2(e) (the
“Service Contracts”) attached hereto and made a part hereof, (ii) all existing warranties and guaranties issued to or inuring to the benefit of the Company in connection with the Improvements or the Tangible Personal Property,
and (iii) all governmental permits, licenses and approvals, if any, belonging to or inuring to the benefit of Company and pertaining to the Real Property or the Tangible Personal Property (the property described in this clause (e) being
sometimes herein referred to collectively as the “Intangible Property”. 
 1.3 Property Defined. The
Land, the Improvements, the Leases and the Intangible Property are hereinafter sometimes referred to collectively as the “Property.” 
 1.4 Permitted Exceptions. At Closing, Sellers covenant that the Company shall hold good, marketable and indefeasible title to the Property subject only to the matters which are, or are deemed to
be, Permitted Exceptions pursuant to ARTICLE 2 hereof (herein referred to collectively as the “Permitted Exceptions”). 
 1.5 Purchase Price. Sellers are to sell and Purchaser is to purchase the Membership Interest for a total purchase price of Four Million Seven Hundred Twenty-Five Thousand Dollars ($4,725,000.00) (the
“Purchase Price”). 
 1.6 Payment of Purchase Price. The Purchase Price shall be payable in full at
Closing in cash by wire transfer of immediately available federal funds to a bank account of Commonwealth Land Title Insurance Company, in its capacity as escrow agent (the “Escrow Agent”) designated by Escrow Agent in writing to
Purchaser prior to the Closing 
 1.7 Deposit. Prior to or upon the Effective Date, Purchaser has deposited with Sellers
the sum of Five Hundred Thousand Dollars ($500,000.00) (the “Deposit”) by wire transfer of immediately available funds. 
  

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 ARTICLE 2 
 TITLE AND SURVEY 
 2.1 Commitment for Title Insurance; Survey. Prior to the
Effective Date, Sellers have delivered to Purchaser a current title insurance commitment for the Real Property (such title commitment, as it may be subsequently updated and revised, the “Title Commitment”) for the issuance by
Commonwealth Land Title Insurance Company (the “Title Company”) of the Title Policy (hereinafter defined). Prior to the Effective Date, Sellers have also delivered to Purchaser a survey of the Real Property prepared by a licensed
surveyor (such survey, as it may be subsequently updated or revised, the “Survey”). 
 2.2 Title to the
Property. At Closing, the Company shall own good, marketable and indefeasible title to the Property, subject only the Permitted Exceptions. It shall be a condition to Purchaser’s obligation to close this transaction that the Title
Company shall have issued the Title Policy to the Company (or unconditionally committed to issue the Title Policy to the Company upon receipt of the title insurance premium therefor). “Title Policy” means an extended coverage
American Land Title Association (ALTA) Form 1992 Owner’s Policy of Title Insurance insuring the Company’s continuing fee simple title to the Real Property, in the full amount of the Purchase Price with the standard exceptions and the
creditor’s rights exclusion deleted, and including the endorsements set forth in Schedule 2.2, attached hereto and by this reference made a part hereof, and subject only to the following matters (the “Permitted
Exceptions”),: 
 (a) the lien of all ad valorem real estate taxes and assessments not yet due and payable as of the
Closing Date, subject to proration and adjustment as herein provided; 
 (b) the rights of tenants, as tenants only, under the
Leases described in the Rent Roll and any new Leases entered into between the Effective Date and Closing and (if required) approved by Purchaser in accordance with the terms of this Agreement; 
 (c) the matters set forth on Schedule B, Section II of the Title Commitment; 
 (d) the items shown on the Survey; and 
 (e) the documents evidencing and securing the New Financing (hereinafter defined). 
 ARTICLE 3

 CLOSING 
 3.1 Time and Place. The consummation of the transaction contemplated hereby (“Closing”) shall be held in escrow at the offices of the Escrow Agent in Louisville, Kentucky at 10:00 a.m. (eastern time) on
or before May 30, 2006 (or such extended date as may be provided 

  

 -3- 

 
under other provisions of this Agreement). The Closing may be held at such other place or such earlier time and date as Sellers and Purchaser shall mutually
approve in writing. The date on which the Closing is scheduled to occur hereunder (or, if earlier, the date on which Closing occurs) is sometimes referred to herein as the “Closing Date”. 
 3.2 Sellers’ Obligations at Closing. At Closing, Sellers shall: 
 (a) deliver to Purchaser an Assignment of Membership Interest in form and substance reasonably satisfactory to Sellers and Purchaser, duly
executed by Sellers with respect to the Membership Interest; 
 (b) deliver to Purchaser an amendment to the articles of
organization of the Company in a form prepared by Purchaser and approved by Sellers, such approval not to be unreasonably withheld (the “Articles Amendment”); 
 (c) execute and deliver to Purchaser an Amended and Restated Operating Agreement of Springhurst Housing Partners, LLC (the
“Restated Operating Agreement”) substantially in the form attached hereto as Schedule 3.5(c); 
 (d)
deliver to Purchaser written resignation from any manager or officer of the Company; 
 (e) execute and deliver to Purchaser a
closing statement, prepared by Sellers and approved by Purchaser, consistent with the terms of this Agreement; 
 (f) execute
and deliver to Purchaser a certificate (“Sellers’ Closing Certificate”), dated as of the Closing Date, in the form of attached hereto as Schedule 3.2(f) and by this reference made a part hereof, stating that the
representations and warranties of Sellers contained in Sections 4.1 and 4.2 of this Agreement are true and correct in all material respects as of the Closing Date; 
 (g) deliver to Purchaser an updated Rent Roll, certified by the Company’s Property Manager to be true and correct in all material
respects. 
 (h) execute and deliver to Purchaser an affidavits of Sellers stating that each Seller is not a
“foreign person” as defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and the 1984 Tax Reform Act; 
 (i) execute and deliver to the Title Company a title insurance affidavit, in form and content reasonably satisfactory to Purchaser and the Title Company and sufficient for the Title Company to issue the Title Policy,
which title insurance affidavit shall include, without limitation, all matters necessary to cause the Title Company to issue a non-imputation endorsement and a Fairway endorsement in form and substance satisfactory to Purchaser in its sole
discretion. 
  

 -4- 

 3.3 Purchaser’s Obligations at Closing. At Closing, Purchaser shall:

 (a) deliver to the Escrow Agent the full amount of the Purchase Price, as increased or decreased by prorations and
adjustments as herein provided, in immediately available federal funds wire transferred to an account designated in writing by Escrow Agent as set forth in Section 1.6 (“Escrow Agent’s Account”), and, as adjusted by
prorations and adjustments as herein provided, shall be subsequently payable in full at Closing in cash by wire transfer of immediately available federal funds to a bank account designated by Seller in writing to Escrow Agent prior to the Closing;

 (b) execute and deliver to Sellers such evidence as Sellers’ counsel and/or the Title Company may reasonably require
as to the authority of the person or persons executing documents on behalf of Purchaser; 
 (c) execute and deliver to Sellers
a closing statement, prepared by Sellers and approved by Purchaser, consistent with the terms of this Agreement; and 
 (d)
execute and deliver the Restated Operating Agreement. 
 3.4 Credits and Prorations. 
 (a) If the transaction closes before 12:00 P.M. Eastern time on the Closing Date, all income and expenses in connection with the operation
of the Company and the Property shall be apportioned, as of 12:01 A.M., on the Closing Date, as if Purchaser were vested with ownership of the Membership Interest during the entire Closing Date, and such that, except as otherwise expressly provided
to the contrary in this Agreement, Sellers (as owner of 100% of the outstanding membership interests in the Company) shall have the benefit of all income and the burden of all expenses for all periods preceding the Closing Date. If the transaction
closes after 12:00 P.M. Eastern Time on the Closing Date, all income and expenses in connection with the operation of the Company and the Property shall be apportioned, as of 12:01 A.M., on the day after the Closing Date, as if Purchaser were vested
with ownership of the Membership Interest during the entire day after the Closing Date, and such that, except as otherwise expressly provided to the contrary in this Agreement, Sellers (as owner of 100% of the outstanding membership interests in the
Company) shall have the benefit of all income and the burden of all expenses for all periods preceding the day after the Closing Date. Items (1)-(5) below will be prorated at Closing utilizing the information known at that time. A post-closing
“true-up” shall take place within ninety (90) days of the Closing Date to adjust the prorations of said items (1), (3), (4) and (5), if necessary, and within a reasonable time to adjust the proration of said item (2), if
necessary. Such prorated items shall include, without limitation, the following: 
 (1) rents, if any, based on the amount
collected for the current month. The term “rents” as used in this Agreement includes all payments due and payable by tenants under the Leases other than refundable deposits, application fees, late 

  

 -5- 

 
charges, pet charges and termination payments (of which deposits shall remain the property of the Company); 
 (2) ad valorem taxes and assessments levied against the Property (including personal property taxes on the Tangible Personal Property),
which shall be prorated as set forth in Section 3.4(b)(1) hereof; 
 (3) payments under the Service Contracts;

 (4) gas, electricity and other utility charges for which the Company is liable, if any, such charges to be
apportioned at Closing on the basis of the most recent meter reading occurring prior to Closing; and 
 (5) any other
operating expenses or other items pertaining to the Property which are customarily prorated between a purchaser and a seller in comparable commercial transactions in the area in which the Property is located. 
 (b) Notwithstanding anything contained in the foregoing provisions: 
 (1) Any ad valorem taxes paid at or prior to Closing shall be prorated based upon the amounts actually paid for the current tax year.
If all taxes and assessments for the current tax year have not been paid before Closing, then such apportionment shall be based upon the tax rate and/or assessed valuation last fixed. To the extent that the actual taxes and assessments
for the current tax year differ from the amount apportioned at Closing, the parties shall make all necessary adjustments by appropriate payments between themselves following Closing upon the availability of the final tax bills. 
 (2) Gas, electricity and other utility charges referred to in Section 3.4(a)(4) above which are payable by any tenant to a third
party shall not be apportioned hereunder. 
 (3) Sellers shall cause the Company to pay in full prior to the Closing all
leasing commissions and locators’ and finders’ fees, if any, due to leasing or other agents (pursuant to a contractual arrangement with the Company) for each Lease entered into by the Company prior to the Closing Date promptly when due.
Trade payables in the nature of open accounts payable to trade vendors or suppliers and all other accounts payable which have accrued prior to the Closing Date shall be the obligation of Sellers. 
 (4) Unpaid and delinquent rent collected by the Company after the date of Closing shall be delivered as follows: (a) if the Company
collects any unpaid or delinquent rent for the Property relating to the date of Closing and any period thereafter, the Company shall distribute any such rent pursuant to the provisions of the Restated Operating Agreement, and (b) if the Company
collects any unpaid or delinquent rent from the Property relating to the period prior to the date of Closing, the Company shall, within fifteen (15) days after the receipt 

  

 -6- 

 
thereof, deliver to Sellers any such rent which Sellers is entitled to hereunder. Sellers and Purchaser agree that all rent received by the Company
after the Closing shall be applied first to current rentals and then to delinquent rentals, if any, in inverse order of maturity. The Company will make a good faith effort after Closing to collect all rents in the usual course of the Company’s
operation of the Property, but the Company will not be obligated to institute any lawsuit or other collection procedures to collect delinquent rents. 
 (c) The provisions of this Section 3.4 shall survive Closing. 
 3.5 Closing Costs.

 (a) The Company shall pay (i) the fees of any counsel representing it in connection with this transaction,
(ii) any escrow fees charged by the Title Company, (iii) the costs of recording all mortgage cancellations, if any, (iv) if applicable, any and all applicable transfer taxes, documentary stamp taxes, recordation taxes, and similar
charges relating to the transfer of the Membership Interest, (v) the premium for the Title Policy, and (v) the cost of the Survey. 
 (b) Sellers shall pay any costs incurred with regard to the payment of any pre-existing debts of the Company incurred as a result of such early payment. Except as set forth in the preceding sentence, all costs and
expenses of the New Financing shall be borne by the Company. 
 (c) Except as otherwise provided herein, all other costs and
expenses incident to this transaction and the closing thereof shall be paid by the party incurring same. 
 3.6 Conditions
Precedent to Obligation of Purchaser. The obligation of Purchaser to consummate the transaction hereunder shall be subject to the fulfillment on or before the Closing Date (or such earlier time as otherwise required hereby) of all of the
following conditions, any or all of which may be waived by Purchaser in its sole discretion: 
 (a) All of the representations
and warranties of Sellers contained in this Agreement shall be true and correct in all material respects as of the Closing Date, as if made and updated as of the Closing Date (without any reference to “knowledge”). 
 (b) Sellers shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be performed
and observed by Sellers as of the Closing Date. 
 (c) Sellers and Purchaser shall have agreed upon the terms and provisions
of, and shall have executed and delivered, the Restated Operating Agreement. 
 (d) The Company shall have closed and funded
simultaneously with the Closing of the transaction hereunder a permanent loan upon terms and conditions set forth in the loan commitment attached hereto as Schedule 3.6(d) and made a part hereof 

  

 -7- 

 
and otherwise pursuant to loan documentation in form and substance reasonably satisfactory to Purchaser (the “New Financing”) 
 (e) All other conditions precedent to Purchaser’s obligation to consummate the transaction hereunder (if any) which are expressly set
forth in this Agreement shall have been satisfied on or before the Closing Date. 
 In the event any of the foregoing conditions has not been
satisfied by the Closing Date other than through failure of Purchaser to fully comply with its obligations under this Agreement, Purchaser shall have the right to terminate this Agreement by written notice given to Sellers on the Closing Date,
whereupon Sellers shall refund the Deposit to Purchaser and the parties shall have no further rights, duties or obligations hereunder, other than those which are expressly provided herein to survive the termination of this Agreement; provided,
however, that if any of the foregoing conditions has not been satisfied due to a default by Purchaser or Sellers hereunder, then Purchaser’s and Sellers’ respective rights, remedies and obligations shall instead be determined in accordance
with ARTICLE 5. 
 3.7 Conditions Precedent to Obligation of Sellers. The obligation of Sellers to consummate the
transaction hereunder shall be subject to the fulfillment on or before the Closing Date of all of the following conditions, any or all of which may be waived by Sellers in their sole discretion: 
 (a) The Company shall have received the Purchase Price as adjusted pursuant to and payable in the manner provided for in this Agreement.

 (b) Purchaser shall have delivered to Sellers all of the items required to be delivered to Sellers by Purchaser or
Purchaser’s agents pursuant to the terms of this Agreement. 
 (c) All of the representations and warranties of Purchaser
contained in this Agreement shall be true and correct in all material respects as of the Closing Date, as if made and updated as of the Closing Date. 
 (d) Purchaser shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be performed and observed by Purchaser as of the Closing Date. 
 (e) Sellers and Purchaser shall have agreed upon the terms and provisions of, and shall have executed and delivered, the Restated
Operating Agreement 
 (f) All other conditions precedent to Sellers’ obligation to consummate the transaction hereunder
(if any) which are expressly set forth in this Agreement shall have been satisfied on or before the Closing Date. 
 In the
event any of the foregoing conditions has not been satisfied by the Closing Date other than through failure of Sellers to fully comply with its obligations under this Agreement, Sellers shall have the right to terminate this Agreement by written
notice given 

  

 -8- 

 
to Purchaser on the Closing Date, whereupon Sellers shall refund the Deposit to Purchaser and the parties shall have no further rights, duties or obligations
hereunder, other than those which are expressly provided herein to survive a termination of this Agreement; provided, however, that if any of the foregoing conditions has not been satisfied due to a default by Purchaser or Sellers hereunder, then
Purchaser’s and Sellers’ respective rights, remedies and obligations shall instead be determined in accordance with ARTICLE 5. 
 3.8 Certain Tax Definitions. 
 (a) For purposes of this Agreement, the following terms have the
following meanings: 
 (1) “Tax” means any federal, state, local, or foreign income, gross receipts, license,
payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, natural resources, customs, duties, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property,
personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not, and including any
express or implied obligation of the Company to indemnify or otherwise assume or succeed to the Tax liability of any other Person. 
 (2) “Tax Return” means any return, declaration, report, claim for refund, information return, or other document, including any related or supporting schedule, statement, information or attachment, and including any
amendment thereof filed or required to be filed in connection with the determination, assessment or collection of Taxes of any party or the administration of any laws, regulations or administrative requirements relating to any Taxes. 
 (b) The provisions of this Section 3.8 shall survive Closing 
 ARTICLE 4 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 4.1 Representations and Warranties of Sellers Primarily Relating to the Membership Interest and the Company. Sellers hereby
represent and warrant to, and covenant with, Purchaser as of the Effective Date and as of the Closing Date, that: 
 (a)
Authority of Sellers. Neither the execution and delivery of this Agreement nor any other documents executed and delivered, or to be executed and delivered, by Sellers in connection with the transactions described herein, will violate
any material agreements, regulations, or laws to or by which the Company or Sellers are bound. 
  

 -9- 

 (b) Organization and Authority of the Company. The Company has been duly
organized and is validly existing and in good standing as a limited liability company under the laws of the State of Indiana. The person signing this Agreement on behalf of the Company is authorized to do so. Neither the execution and delivery of
this Agreement nor any other documents executed and delivered, or to be executed and delivered, by the Company in connection with the transactions described herein, will violate (i) any provision of the Company’s organizational documents;
or (ii) any material agreements, regulations, or laws to or by which the Company is bound. This Agreement has been duly authorized, executed and delivered by the Company. 
 (c) Ownership of Membership Interest. Sellers are the only members in the Company and own one hundred percent (100%) of
the outstanding membership interests in the Company. There are no managers or members in the Company other than Sellers. Sellers have good and marketable title to, and are the sole owners and holders of, the Membership Interest, free and clear of
any and all liens, encumbrances, pledges and other interests on, in or to the Membership Interest. Sellers have not previously assigned, sold, participated or otherwise transferred all or any part of the Membership Interest nor have Sellers entered
into any agreement to assign, sell, transfer or participate all or any part of the Membership Interest on the company. The transfer of the Membership Interest to the Purchaser shall validly assign ownership of the Membership Interest to the
Purchaser free and clear of any pledge, lien, encumbrance or security interest. Following Sellers’ assignment of the Membership Interest to Purchaser, Purchaser shall own 70% of all legal and equitable interests in the Company, free and clear
of any and all liens, encumbrances, pledges or other interests. 
 (d) Authority to Transfer Membership
Interest. Seller have full right and authority to enter into this Agreement and to sell, assign and transfer the Membership Interest to the Purchaser. No documents relating to the Company or the Membership Interest prohibit or restrict
Sellers’ right to sell, assign or transfer the Membership Interest. 
 (e) Membership Interest Files.
Sellers have made and shall make available to the Purchaser for inspection a true, correct and complete copies of all material documents and reports relating to the Membership Interest, the Company and the Property. 
 (f) Assets and Liabilities. At the time of the Closing, the only material assets of the Company will be the Property. To
Sellers’ knowledge, the Company has no liabilities (contingent or otherwise), other than as set forth on Schedule 4.1(f), attached hereto and by this reference made a part hereof. 
 (g) Taxes and Tax Returns. All Tax Returns required to be filed by, on behalf of or with respect to the income, assets or
operations of, Sellers and the Company have been timely filed with the appropriate taxing authorities in all jurisdictions in which such Tax Returns are required to be filed, and all such Tax Returns were accurate and complete in all material
respects. As of the date hereof, (i) all Taxes payable by, on 

  

 -10- 

 
behalf of or with respect to the income, assets or operations of, Sellers and the Company have been fully and timely paid, and (ii) adequate reserves or
accruals for Taxes have been provided with respect to any period for which Tax Returns are not yet due and have not yet been filed. Neither Sellers nor the Company has executed or filed with the Internal Revenue Service or any other taxing authority
any agreement, waiver or other document or arrangement extending or having the effect of extending the period for assessment or collection of Taxes (including, but not limited to, any applicable statute of limitation), and no power of attorney with
respect to any Tax matter is currently in force with respect to Sellers or the Company. 
 (h) No Defaults.
Sellers have performed all obligations required to be performed by it under the Operating Agreement for Springhurst Housing Partners, LLC, dated May 28, 1997 (the “LLC Agreement”) and is not in breach or default of any
provisions of the LLC Agreement. No action or legal proceeding is pending or threatened against Sellers relating to the Membership Interest or the Company. 
 (i) Employment Matters. The Company has no employees and has never had any employees. 
 (j) Insurance. Schedule 4.1(j), attached hereto and by this reference made a part hereof, lists each insurance policy maintained by the Company with respect to its properties, assets and business. All of
such insurance policies are in full force and effect, and the Company is not in default with respect to its obligations under any of such insurance policies and has not received any notification of cancellation of any of such insurance policies.
Furthermore, neither Sellers nor the Company has received any written notice from any insurance company or board of fire underwriters of any defect or inadequacies in or on the Real Property or any part or component thereof that would materially and
adversely affect the insurability of the Real Property or cause any material increase in the premiums for insurance on the Real Property, and that have not been cured or repaired. 
 (k) No Option or Right of First Refusal. There exists no option, right of first refusal, letter of intent, agreement to
sell, or other similar right with respect to the transfer of the Membership Interest. 
 (l) Compliance with
Laws. To Sellers’ knowledge, (i) the Company is in compliance in all material respects, and has received no written notice that it is not in compliance in any material respect, with any statute, law, ordinance, rule, regulation,
judgment, order, decree, governmental permit or other governmental authorization or approval applicable to it or to the business of the Company, and (ii) all governmental authorizations or approvals material for the ownership and operation of
the Property have been duly and lawfully obtained and are in full force and effect. There are no proceedings pending or, to the knowledge of Sellers, overtly threatened which may result in the revocation, cancellation or suspension, or any
materially adverse modification, of any thereof. Neither the Company nor Sellers have received notice of any alleged violation of any applicable statute, law, ordinance, rule, regulation, 

  

 -11- 

 
judgment, order, decree, governmental permit or other governmental authorization or approval necessary for the conduct of the business of the Company or for
the ownership and operation of the Property by the Company. 
 (m) No Consent. No consents, approvals, waivers,
permits or authorizations from any governmental authority or Person not a party hereto (including, without limitation, any lender to the Company or the Sellers) are required to be obtained or made by Sellers in connection with the execution,
delivery and performance of or compliance by Sellers with this Agreement or any of the closing documents or the consummation by Sellers of the transaction contemplated hereby. 
 (n) Single Purpose Entity. The Company: (a) was formed or organized solely for the purpose of owning the Property;
(b) has not engaged and shall not engage in any business unrelated to the Property; (c) does not have any material assets other than its interest in the Property; (d) has and shall have its own books and records separate and apart
from any other person or entity, and (e) holds and shall hold itself out as a legal entity, separate and apart from any other person or entity. The only business or commercial activities conducted by the Company since its formation are the
operation, ownership or management of the Property. 
 (o) No Subsidiaries or Interests; No other Participants.
The Company has no interest, direct or indirect, and has no commitment to purchase any interest, direct or indirect, in any corporation or in any partnership, joint venture or other business enterprise or entity. The Company has no subsidiaries, and
no business of the Company is carried on or conducted through any direct or indirect subsidiary or affiliate of the Company. The Company has never (i) merged with any entity, (ii) acquired any entity, or (iii) acquired any interest in
any entity, including by reason or virtue of any business transaction involving any merger, “roll-up,” consolidation, reorganization, recapitalization, restructuring or any other type of transaction. Neither Sellers nor the Company has any
obligation to make any payment to any party with respect to any promoted or participation interest, or any similar payment, arising from the Company or any partnership, joint venture or other business enterprise or entity to which the Company now
has or has had any direct or indirect interest. 
 (p) Loans to or from Officers, Directors, Shareholders or
Employees. The Company does not have outstanding any loans, advances or other indebtedness incurred by any member, officer, or employee of the Company or any member of their respective families, and there are no loans or advances made to the
Company by or indebtedness incurred by the Company to any member, officer or employee of the Company or any member of their respective families 
  

 -12- 

 (q) Contracts and Commitments. Except as expressly set forth on Schedule
4.1(q) attached hereto and by this reference made a part hereof (each, a “Contract”) and except for the Leases and the Service Contracts, to Sellers’ knowledge, the Company is not a party to or bound by, whether written or
oral, any: 
 (1) (i) contract for the employment of any officer, individual employee, or other person or entity on a
full-time, part-time, consulting or other basis or (ii) agreement relating to loans to or from Sellers or any manager, member, affiliate or any other person or entity; 
 (2) agreement or indenture relating to the borrowing of money or to the mortgaging, pledging or otherwise placing a lien on or security
interest in any asset or group of assets of the Company, Sellers or any manager, member, affiliate or any other person or entity; 
 (3) guarantee of any obligation for borrowed money or otherwise; 
 (4) agreement with respect to the lending or
investing of funds; 
 (5) lease or agreement under which it is lessee of or holds or operates any property, real or personal,
owned by any other party; 
 (6) lease or agreement under which it is lessor of or permits any third party to hold or operate
any property, real or personal, owned or controlled by it; 
 (7) assignment, license, indemnification or agreement with
respect to any form of intangible property, including any patent, trademark, trade name, copyright, know-how, trade secret or confidential information; 
 (8) contract or group of related contracts with the same party for the purchase or sale of products or services or for future expenditures of the Company; or 
 (9) any other oral or written agreement of any kind. 
 The Company has performed all obligations required to be performed by it in all respects and is not in default under or in breach of nor in receipt of any claim of default or breach under any Contract, and no event
has occurred which with the passage of time or the giving of notice or both would result in a default, breach or event of noncompliance under any Contract and would allow any other party to Contract to terminate, modify or accelerate any rights
under any such agreement. 
 (r) Bank Accounts. Schedule 4.1(r), attached hereto and by this
reference made a part hereof, sets forth a complete and accurate list of each bank or financial institution in which the Company has an account or safe deposit box (giving the address and account numbers) and the names of the Persons authorized to
draw thereon or who have access thereto. 
 (s) Financial Status of Sellers and the Company. Each of Sellers and
the Company is solvent, has not made a general assignment for the benefit of its creditors, and has not admitted in writing its inability to pay its debts as they become due. Neither Sellers nor the Company has filed, nor does either Sellers or the
Company contemplate 

  

 -13- 

 
the filing of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or any other proceeding for the relief of debtors in
general, nor has any such proceeding been instituted by or against Sellers or the Company, nor is any such proceeding to Sellers’ knowledge threatened or contemplated. The transaction contemplated herein will not render Sellers or the Company
insolvent. 
 4.2 Representations and Warranties of Sellers Primarily Relating to the Property. Sellers hereby represent and
warrant to, and covenant with, Purchaser as of the Effective Date and as of the Closing Date: 
 (a) Pending
Actions. No action, suit, arbitration, administrative or judicial proceeding, or unsatisfied order or judgment is pending or, to Sellers’ knowledge, threatened against Sellers or the Company. 
 (b) Condemnation. Neither Sellers nor the Company has received notice of, and, to the best of Sellers’ knowledge, there
is not, any pending, threatened or contemplated action by any governmental authority or agency having the power of eminent domain, which might result in any part of the Property being taken by condemnation or conveyed in lieu thereof or concerning
the widening, change of grade or limitation on the use of streets abutting the Property. Sellers shall, promptly upon Sellers or the Company receiving any such notice or learning of any such contemplated or threatened action, give Purchaser written
notice thereof. 
 (c) No Assessments. To Sellers’ knowledge, no assessments have been made against any
portion of the Property which are unpaid (except ad valorem taxes for the current year, if any, that are not currently due and payable), whether or not they have become liens; and Sellers shall notify Purchaser upon Sellers’ or the
Company’s learning of any such assessments. Neither Sellers nor the Company has filed any pending notices of protest against real property tax assessments with respect to the Real Property, nor have Sellers or the Company engaged anyone to file
such a protest (other than protests which have been concluded). 
 (d) Leases and Rent Roll. The Company is the
lessor or landlord under the Leases. To Sellers’ knowledge, the information contained in the Rent Roll is true and correct in all material respects as of the date thereof. Except as set forth in the Rent Roll, there are no other leases or
occupancy agreements affecting the Property (other than such Leases, if any, as may have been entered into in the ordinary course of business since the date of the Rent Roll). To Sellers’ knowledge, except as otherwise set forth in the Rent
Roll, no rent concessions have been given to any tenants that would be applied against rent after the Closing, and no rent has been paid in advance by any tenants respecting a period subsequent to the Closing. Except as set forth in the Rent Roll,
no tenant is in material default under its Lease, and, to Sellers’ knowledge, the Company is not in material default under any of the Leases. 
 (e) Existing Agreements; Service Contracts. To Sellers’ knowledge, there are no management, service, supply, equipment rental and similar agreements to which 

  

 -14- 

 
the Company is a party affecting the Property other than the Service Contracts. Those Service Contracts which have been or will be delivered by Sellers to
Purchaser are true, correct and complete in all material respects and include any material amendments or modifications thereto. To Sellers’ knowledge, the Company is not in default with respect to its obligations or liabilities under any of the
Service Contracts. Other than the Leases, the Service Contracts and the Permitted Exceptions, there are no leases, ground leases, service contracts, maintenance contracts, management agreements or other agreements or understandings, whether oral or
written, relating to the Property to which Sellers or the Company is a party or by which Sellers or the Company is bound that will be binding on the Company, Purchaser or the Property on or after the Closing Date. 
 (f) Environmental Matters. Except as may be set forth in those environmental reports and other matters, if any, identified
on Schedule 4.2(f) (collectively, the “Environmental Reports”), (i) neither Sellers nor the Company has received any written notice from any governmental authority, neighboring property owner or other party asserting any
violation of Environmental Laws related to the Property which has not been cured or corrected as of the Effective Date, (ii) neither Sellers nor the Company has commissioned any study or investigation relating to the presence or absence of
Hazardous Materials on the Property, (iii) to Sellers’ knowledge, no areas on the Property exist where Hazardous Materials have been generated, disposed of, released or found, (iv) neither Sellers nor the Company has any knowledge of
the existence of any areas for the storage or disposal of any Hazardous Materials on the Property, and (v) to Sellers’ knowledge, there are no storage tanks located on the Property, either above or below ground, or any underground pipes or
lines on the Property, and the Property previously has not been used as a landfill or as a dump for garbage or refuse. The term “Environmental Laws” as used herein includes without limitation the Resource Conservation and Recovery
Act and the Comprehensive Environmental Response, Compensation, and Liability Act and other federal laws governing the environment as in effect on the date of this Agreement together with their implementing regulations as of the date of this
Agreement applicable to the Property, and all applicable state, regional, county, municipal and other local laws, regulations and ordinances that are equivalent or similar to the federal laws recited above or that purport to regulate hazardous or
toxic substances and materials. The term “Hazardous Materials” as used herein includes petroleum (including crude oil or any fraction thereof) and any substance, material, waste, pollutant or contaminant listed or defined as
hazardous or toxic under any Environmental Laws, in any case at levels or concentrations requiring monitoring, reporting, remediation or removal in accordance with Environmental Laws. 
 (g) Contractors and Suppliers. All contractors, subcontractors, suppliers, architects, engineers, and others who have
performed services or labor for or supplied material to Sellers or the Company with respect to the Property have been paid in full, and all liens arising from any such services, labor or materials (or claims with which the passage of time or notice
or both could mature into liens) have been satisfied and released. 
  

 -15- 

 (h) Permits and Legal Compliance. Neither Sellers nor the Company has
received any written notice of an intention of any governmental authority to revoke any license, permit or certificate required for the development, use, operation or occupancy of the Property. Neither Sellers nor the Company has received any
written notice that the Property is in violation of any zoning, building, fire, health, environmental or other law, statute, ordinance, regulation or order of any governmental or public authority applicable to the Property or any private covenants
or restrictions encumbering the Property that remains uncured. 
 4.3 Survival of Sellers’ Representations and Warranties.
The representations and warranties of Sellers set forth in Sections 4.1 and 4.2 shall survive Closing for a period of one (1) year after Closing, unless notice setting forth a specific claim under any such representation or warranty shall be
given to Sellers within that period, in which case such representation or warranty shall survive until such claim is finally and fully resolved. 
 4.4 Representations and Warranties of Purchaser. Purchaser hereby makes the following representations and warranties to Sellers as of the Effective Date: 
 (a) Organization and Authority. Purchaser has been duly organized and is validly existing as a limited liability company
under the laws of the State of Delaware. Purchaser has the full right and authority to enter into this Agreement and to consummate the transaction contemplated herein pursuant hereto and to consummate or cause to be consummated the transactions
contemplated herein. The person signing this Agreement on behalf of Purchaser is authorized to do so. Neither the execution and delivery of this Agreement nor any other documents executed and delivered, or to be executed and delivered, by Purchaser
in connection with the transactions described herein, will violate any provision of Purchaser’s organizational documents or of any agreements, regulations, or laws to or by which Purchaser is bound. 
 (b) Consents. Purchaser has obtained all consents and permissions (if any) related to the transactions herein contemplated
and required under Purchaser’s organizational documents or any covenant, agreement, encumbrance, law or regulation by which Purchaser is bound. 
 (c) Pending Actions. There is no action, suit, arbitration, administrative or judicial administrative proceeding, or unsatisfied order or judgment pending or, to Purchaser’s knowledge, threatened
against Purchaser or the transaction contemplated by this Agreement, which, if adversely determined, could individually or in the aggregate have a material adverse effect on Purchaser’s ability to consummate the transaction contemplated herein.

 (d) Financial Status. Purchaser has adequate financial resources to purchase the Membership Interest.
Purchaser is solvent, has not made a general assignment for the benefit of its creditors, and has not admitted in writing its inability to pay its debts as they become due. Purchaser has neither filed, nor does it contemplate the filing of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or any 

  

 -16- 

 
other proceeding for the relief of debtors in general, nor has any such proceeding been instituted by or against Purchaser, nor is any such proceeding to
Purchaser’s knowledge threatened or contemplated. The purchase of the Membership Interest will not render Purchaser insolvent. 
 4.5
Survival of Purchaser’s Representations and Warranties. The representations and warranties of Purchaser set forth in Section 4.4 shall survive Closing for a period of one (1) year after Closing, unless notice setting forth
a specific claim under any such representation or warranty shall be given to Purchaser within that period, in which case such representation or warranty shall survive until such claim is finally and fully resolved. 
 4.6 Indemnification by Sellers. From and after the Closing, Sellers shall be liable for and shall pay, and shall indemnify, defend
and hold harmless Purchaser and the Company (and each of their respective members, officers and employees) (collectively, the “Purchaser Indemnitees”) against, any and all claims, damages, liabilities, costs and expenses (including
reasonable attorneys’ fees) (collectively, the “Damages”) sustained by a Purchaser Indemnitee, in excess of insurance proceeds actually received by the Purchaser Indemnitee and other amounts actually received by the Purchaser
Indemnitee from Seller or third parties in partial or complete settlement or satisfaction of such Damages, resulting from or in connection with any claim, action, suit, proceeding or demand by a person or entity that is not a Purchaser Indemnitee
(i) relating to liabilities or obligations for which the Company has any liability or obligation after the Closing Date that are not expressly contemplated by this Agreement to continue as obligations of the Company after the Closing; or
(ii) arising from the operation of the business of the Company prior to the Closing Date. Notwithstanding any provision of this Article to the contrary, except to the extent expressly covered by any representation, warranty or covenant made by
Sellers in Sections 4.1 and 4.2, in no event shall the obligations of Seller or Parent in this Section 4.6 apply to, nor shall any Purchaser Indemnitee be entitled to indemnification under this Section 4.6 for, any claims, damages,
liabilities, costs and expenses relating to or associated with the condition or use of the Real Property or the Tangible Personal Property, including (without limitation) the habitability, merchantability, fitness for a particular purpose, title,
zoning, latent or patent physical or environmental condition, utilities, operating history or projections, valuation, or the compliance with governmental laws as the foregoing relate to the Real Property and the Tangible Personal Property. The
provisions of this Section 4.6 shall survive for a period of five (5) years after Closing, unless notice setting forth a specific claim for Damages for which any Purchaser Indemnitee is entitled to indemnification hereunder shall be given
to Sellers or Sellers otherwise shall obtain actual knowledge of any such Damages within that period, in which case the provisions of this Section 4.6 shall survive as to such Damages until the same are finally and fully resolved; provided,
however, that the provisions of this Section 4.6 shall survive indefinitely (subject to any applicable statute of limitations) as to any Damages for which any Purchaser Indemnitee is entitled to indemnification hereunder related to Taxes.

  

 -17- 

 4.7 Covenants of Sellers. Sellers hereby covenant with Purchaser, from the Effective Date
until the Closing or earlier termination of this Agreement, as follows: 
 (a) Conduct of the Company’s
Business. The Company and Sellers shall (i) conduct the Company’s business in the ordinary course of business and (ii) preserve intact the Company’s business organization, intellectual property rights, contracts,
licenses, permits and authorizations. 
 (b) The Company’s Compliance with Legal Requirements and
Contracts. The Company and Sellers shall comply in all material respects with all legal requirements and contractual obligations applicable to or binding upon the Company or relating to the Company’s business or assets, including the
Property. 
 (c) Satisfaction of Closing Obligation. The Company and Sellers shall use the Company’s and
Sellers’ reasonable and diligent efforts to satisfy each of the Closing conditions expressly set forth in Sections 3.6 and 3.7 (other than those conditions which are within Purchaser’s control) as soon as practicable. 
 (d) No Sale of Interests of the Company. Neither the Company nor Sellers shall issue or authorize the issuance of, or
purchase or propose the purchase of, any equity interests of the Company, or declare, pay, make or otherwise effectuate any distributions, redemptions or other transactions involving the Company’s equity interests, or commit to do same.

 (e) Action or Inaction in Conformity with Representations and Warranties. Neither the Company nor Sellers
shall take any action or inaction, or commit to take any action or inaction, which would result in the representations and warranties of Sellers contained in Article 4 or elsewhere in this Agreement or in any schedule, attachment or exhibit hereto
or in any certificate delivered by Sellers to Purchaser to not be true and correct in all respects as of the Closing. 
 (f)
Taxes. The Company shall not, and Sellers shall not take any action to cause the Company, and shall not permit the Company, to (i) change in any material respect the accounting methods or practices followed by the Company,
(ii) make or revoke any tax election, change any tax accounting method or settle or compromise any tax liability, or (iii) fail to prepare and file all Tax Returns required to be filed by it. 
 (g) Additional Interests. The Company shall not, and Sellers shall not take any action to cause the Company, and shall not
permit the Company, to create, authorize, issue, sell, deliver, pledge or encumber any additional membership interest or any equity interests in the Company (whether authorized but unissued or held in treasury) or other securities equivalent to or
exchangeable for membership interests or any equity interests in the Company, or grant or otherwise issue any options, warrants or other rights with respect thereto. 
 (h) Acquisitions. The Company shall not, and Sellers shall not take any action to cause the Company, and shall not permit
the Company, to acquire or agree to acquire by merging or consolidating with, or by purchasing any portion of the capital stock, partnership interests, limited liability company member interests or assets of, or 

  

 -18- 

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

  

 -19- 

 
Company shall only enter into new leases or renewals in the ordinary course of business taking into account Sellers’ then-current good faith evaluation
of market conditions. Each such new lease or renewal entered into by the Company shall constitute a “Lease” for purposes of this Agreement. 
 (p) Maintenance of Insurance. Sellers shall cause the Company to keep the Improvements insured against loss or damage
(including rental loss) by fire and all risks covered by the Company’s insurance that is currently in force, provided that the Company may make adjustments in the Company’s insurance coverage for the Property which are consistent with the
Company’s general insurance program. 
 (q) Enforcement of Existing Leases. Sellers shall cause the Company
to perform the landlord’s material obligations to the tenants under the Leases and enforce the material obligations of the tenants under the Leases, in each case in accordance with the current management standards of the Company and its
property manager for its apartment properties. 
 (r) Preparation of Vacant Units for Lease. Sellers shall cause
the Company to place apartment units that are now vacant or that are vacated not less than ten (10) day prior to the Closing Date into rent-ready condition on or before the Closing Date in accordance with the Company’s current management
standards for its apartment properties as though no sale of the Property were contemplated; provided, however, in no event shall there be more than twelve (12) vacant apartment units that are not in rent-ready condition on the Closing Date.

 (s) Removal and Replacement of Tangible Personal Property. Neither Sellers nor the Company shall remove
any Tangible Personal Property except as may be required for necessary repair or replacement (which repair and replacement shall be of equal quality and quantity as existed as of the time of the removal), or otherwise in accordance with current
inventory and management standards of the Company and its property manager for its apartment properties. 
 (t)
Execution of New Contracts. Neither Sellers nor the Company shall, without Purchaser’s prior written consent in each instance, materially amend or terminate any of the Service Contracts, or enter into any contract or agreement
that will be an obligation affecting the Property or binding on the Company or Purchaser after the Closing, except that (i) the Company may enter into, amend or enforce (including enforcement by termination) service contracts in the ordinary
course of business as reasonably necessary for the continued operation and maintenance of the Property, provided any new service contracts are terminable without cause or penalty on thirty (30) days notice, and (ii) the Company may conduct
leasing activity as provided in Section 4.7(o) hereof. Each such new service contract entered into by the Company shall constitute a “Service Contract” for purposes of this Agreement 
 (u) Maintenance of Permits. Sellers and the Company shall maintain in existence all licenses, permits and approvals that are
now in existence with respect to, 

  

 -20- 

 
and are required for, the ownership, operation or improvement of the Property, and are of a continuing nature. 
 (v) Prohibited Authorizations. The Company shall not, and Sellers shall not, take any action to cause the Company, and shall
not permit the Company, to authorize any of the actions prohibited under this Section 4.7, or enter into any agreement or commitment to do any of such prohibited actions. 
 ARTICLE 5 
 DEFAULT 
 5.1 Default by Purchaser. If the sale of the Membership Interest as contemplated hereunder is not consummated due to
Purchaser’s default hereunder, then Sellers shall be entitled, as its sole and exclusive remedy for such default, to terminate this Agreement and receive the Deposit as liquidated damages for the breach of this Agreement and not as a penalty,
it being agreed between the parties hereto that the actual damages to Sellers in the event of such breach are impractical to ascertain and the amount of the Deposit is a reasonable estimate thereof, Sellers hereby expressly waiving and relinquishing
any and all other remedies at law or in equity. Sellers’ right to receive the Deposit is intended not as a penalty, but as full liquidated damages. The right to receive the Deposit as full liquidated damages is Sellers’ sole and exclusive
remedy in the event of default hereunder by Purchaser, and Sellers hereby waive and release any right to (and hereby covenants that it shall not) sue Purchaser: (a) for specific performance of this Agreement, or (b) to recover any damages
of any nature or description other than or in excess of the Deposit. Purchaser hereby waives and releases any right to (and hereby covenants that it shall not) sue Sellers or seek or claim a refund of the Deposit (or any part thereof) on the
grounds it is unreasonable in amount and exceeds Sellers’ actual damages or that its retention by Sellers constitutes a penalty and not agreed upon and reasonable liquidated damages. This Section 5.1 is subject to Section 5.4
hereof. 
 5.2 Default by Sellers. If the sale of the Membership Interest as contemplated hereunder is not consummated
due to Sellers’ default hereunder, then Sellers shall refund the Deposit to Purchaser, on demand, without prejudice to any other rights or remedies of Purchaser hereunder, at law or in equity. Without limitation on the foregoing, Purchaser
shall have the right to seek specific performance of this Agreement, injunctive relief and other equitable remedies. 
 5.3
Notice of Default; Opportunity to Cure. Neither Sellers nor Purchaser shall be deemed to be in default hereunder until and unless such party has been given written notice of its failure to comply with the terms hereof and
thereafter does not cure such failure within five (5) business days after receipt of such notice. 
 5.4 Recoverable
Damages. Notwithstanding Sections 5.1 and 5.2 hereof, in no event shall the provisions of Sections 5.1 and 5.2 limit either Purchaser’s or Sellers’ obligation to indemnify the other party or the damages recoverable by the
indemnified party against the 

  

 -21- 

 
indemnifying party due to a party’s express obligation to indemnify the other party in accordance with Section 7.1 or any other provision of this
Agreement. 
 5.5 Rights and Remedies of the Company. Notwithstanding anything to the contrary contained herein, Sellers
and the Company agree that the Company shall have no right or remedy against Purchaser with respect to any breach of this Agreement by Purchaser or in any way arising from or relating to this Agreement, the Company hereby expressly waiving and
relinquishing any and all other remedies at law or in equity. 
 ARTICLE 6 
 CASUALTY AND CONDEMNATION 
 6.1 Casualty or Condemnation.
In the event of any damage to or destruction of the Property or any material portion thereof or in the event of any taking or threat of taking by condemnation (or any conveyance in lieu thereof) of any portion of the Property by anyone having
the power of eminent domain, Purchaser shall, by written notice to Sellers delivered within ten (10) business days of receiving written notice from Sellers of such event, elect to: (a) terminate this Agreement and all of Purchaser’s
obligations under this Agreement, whereupon the Deposit shall be returned to Purchaser, this Agreement shall terminate and Purchaser and Sellers shall have no further rights and obligations hereunder except those which expressly survive termination
of this Agreement; or (b) consummate the purchase of the Membership Interest, in which event all insurance proceeds or condemnation awards payable to or received by the Company shall be distributed or otherwise applied by the Company in
accordance with the provisions of the Restated Operating Agreement. 
 6.2 Notice of Condemnation or Casualty. Sellers
shall notify Purchaser immediately upon Sellers’ or the Company’s receiving notice of the occurrence or existence of any damage, destruction, condemnation or threat of condemnation affecting the Property and, at the same time, shall
provide Purchaser with such information with respect thereto as is in Sellers’ or the Company’s possession in order to aid Purchaser in making, on an informed basis, the election between the alternatives provided by clauses (a) and
(b) in Section 6.2 above. Notwithstanding anything in this Agreement to the contrary, Purchaser shall have ten (10) business days after it receives such information from Sellers within which to elect between such alternatives, and, if
the information is delivered to Purchaser less than ten (10) business days before the Closing Date, the Closing Date shall be postponed, if and to the extent necessary, to allow Purchaser such a ten (10) business day period in which to
make the election under Section 6.2 above 
 ARTICLE 7 
 COMMISSIONS 
 7.1 Representation and Indemnity. Purchaser
and each of the Sellers each hereby represent and warrant to the other that it has not disclosed this Agreement or the subject matter hereof to, and has not otherwise dealt with, any real estate broker, agent or salesman so as to create any
legal right or claim in any such broker, agent or salesman for a real estate 
  

 -22- 

 commission or similar fee or compensation with respect to the negotiation and/or consummation of this Agreement or the
conveyance of the Membership Interest by Sellers to Purchaser. Purchaser and Sellers shall indemnify, hold harmless and defend each other from and against any and all claims and demands for a real estate brokerage commission or similar fee or
compensation arising out of any claimed dealings with the indemnifying party and relating to this Agreement or the purchase and sale of the Membership Interest (including reasonable attorneys’ fees and expenses and court costs incurred in
defending any such claim or in enforcing this indemnity). 
 7.2 Survival. This ARTICLE 7 shall survive the rescission,
cancellation, termination or consummation of this Agreement. 
 ARTICLE 8 
 MISCELLANEOUS 
 8.1 Public Disclosure. Prior to Closing,
any release to the public of information with respect to the sale contemplated herein or any matters set forth in this Agreement will be made only in the form approved by Purchaser and Sellers. 
 8.2 Assignment. Neither Sellers nor Purchaser may assign its rights or obligations under this Agreement without first obtaining the
other party’s written approval. 
 8.3 Notices. Any notice, request or other communication (a
“notice”) required or permitted to be given hereunder shall be in writing and shall be delivered by hand or overnight courier (such as United Parcel Service or Federal Express), sent by facsimile (provided a copy of such notice is
deposited with an overnight courier for next business day delivery) or mailed by United States registered or certified mail, return receipt requested, postage prepaid and addressed to each party at its address as set forth below. Any such
notice shall be considered given on the date of such hand or courier delivery, confirmed facsimile transmission (provided a copy of such notice is deposited with an overnight courier for next business day delivery), deposit with such overnight
courier for next business day delivery, or deposit in the United States mail, but the time period (if any is provided herein) in which to respond to such notice shall commence on the date of hand or overnight courier delivery or on the date received
following deposit in the United States mail as provided above. Rejection or other refusal to accept or inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice. By giving
at least five (5) days’ prior written notice thereof, any party may from time to time and at any time change its mailing address hereunder. Any notice of any party may be given by such party’s counsel. 
 The parties’ respective addresses for notice purposes are as follows. Telephone numbers are given for convenience of reference only.
Notice by telephone shall not be effective. 
  

 -23- 

			
	 If to Purchaser:
	  	PRIP 3700, LLC
		
		  	 c/o Paladin Realty Partners, LLC

		
		  	 10880 Wilshire Boulevard, Suite 1400

		
		  	 Los Angeles, California 90024

		
		  	 Attention: William K. Dunbar

		
		  	 Telephone: (310) 996-8754

		
		  	 Facsimile: (310) 996-8708

		
	 with a copy to:
	  	King & Spalding LLP
		
		  	 1180 Peachtree Street, N.E.

		
		  	 Atlanta, Georgia 30309

		
		  	 Attention: Timothy N. Tucker

		
		  	 Telephone: (404) 572-4600

		
		  	 Facsimile: (404) 572-5131

		
	 If to Sellers or the Company:
	  	Bradley B. Chambers
		
		  	 c/o Buckingham Investment Corporation

		
		  	 333 N. Pennsylvania Street, 10th Floor

		
		  	 Indianapolis, Indiana 46204

		
		  	 Attention: Bradley B. Chambers

		
		  	 Telephone: (317) 974-1234

		
		  	 Facsimile: (317) 974-1238

		
	 with a copy to:
	  	Ice Miller LLP
		
		  	 One American Square

		
		  	 Suite 3100

		
		  	 Indianapolis, Indiana 46282-0200

		
		  	 Attention: Zeff A. Weiss, Esq.

		
		  	 Telephone: (317) 236-2319

		
		  	 Facsimile: (317) 592-4788

 8.4 Modifications. This Agreement cannot be changed orally, and no agreement
shall be effective to waive, change, modify or discharge it in whole or in part unless such agreement is in writing and is signed by the parties against whom enforcement of any waiver, change, modification or discharge is sought. In no event shall
this Agreement be altered, amended or modified by electronic mail or electronic record. The parties acknowledge and agree that this Agreement shall not be executed, entered into, altered, amended or modified by electronic means. Without limiting the
generality of the foregoing, the parties hereby agree that the transactions contemplated by this Agreement shall not be conducted by electronic means. 
 8.5 Calculation of Time Periods. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or event after which the designated period 

 

 -24- 

 of time begins to run is not to be included and the last day of the period so computed is to be included, unless such
last day is a Saturday, Sunday or legal holiday under the laws of the State in which the Property is located, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday. The final day of
any such period shall be deemed to end at 5:00 p.m., Eastern time. 
 8.6 Successors and Assigns. Subject to
Section 8.2 hereof, the terms and provisions of this Agreement are to apply to and bind the permitted successors and assigns of the parties hereto. 
 8.7 Entire Agreement. This Agreement, including the Exhibits, contains the entire agreement between the parties pertaining to the subject matter hereof and fully supersedes all prior written or
oral agreements and understandings between the parties pertaining to such subject matter. 
 8.8 Further Assurances.
Each party agrees that it will without further consideration execute and deliver such other documents and take such other action, whether prior or subsequent to Closing, as may be reasonably requested by the other party to consummate more
effectively the purposes or subject matter of this Agreement. Without limiting the generality of the foregoing, Purchaser shall, if requested by Sellers, execute acknowledgments of receipt with respect to any materials delivered by Sellers to
Purchaser with respect to the Property. The provisions of this Section 8.8 shall survive Closing. 
 8.9
Counterparts. This Agreement may be executed in counterparts, and all such executed counterparts shall constitute the same agreement. It shall be necessary to account for only one such counterpart in proving this Agreement.

 8.10 Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be
invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect. 
 8.11 Applicable
Law. This Agreement is performable in the state in which the Property is located and shall in all respects be governed by, and construed in accordance with, the substantive federal laws of the United States and the laws of such state.
Purchaser, Sellers and the Company hereby irrevocably submit to the jurisdiction of any state or federal court sitting in the state and judicial district in which the Property is located in any action or proceeding arising out of or
relating to this Agreement and hereby irrevocably agree that all claims in respect of such action or proceeding shall be heard and determined in a state or federal court sitting in the state and judicial district in which the Property is located.
Purchaser, Sellers and the Company agree that the provisions of this Section 8.11 shall survive the Closing of the transaction contemplated by this Agreement. 
 8.12 No Third Party Beneficiary. The provisions of this Agreement and of the documents to be executed and delivered at Closing are and will be for the benefit of Purchaser, Sellers and (where
applicable) the Company only and are not for the benefit of any third party, and accordingly, no third party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing. 
  

 -25- 

 8.13 Exhibits and Schedules. The following schedules or exhibits attached hereto
shall be deemed to be an integral part of this Agreement: 
  

					
	Schedule 1.2(a)	  	-	  	Legal Description of the Land
	Schedule 1.2(c)	  	-	  	List of Tangible Personal Property
	Schedule 1.2(d)	  	-	  	Rent Roll
	Schedule 2.2	  	-	  	Required Endorsements
	Schedule 3.2(c)	  	-	  	Restated Operating Agreement
	Schedule 3.2(f)	  	-	  	Form of Sellers’ Closing Certificate
	Schedule 3.6(d)	  	-	  	Terms of New Financing
	Schedule 4.1(f)	  	-	  	Liabilities of the Company
	Schedule 4.1(j)	  	-	  	Insurance
	Schedule 4.1(q)	  	-	  	Contracts and Commitments
	Schedule 4.1(r)	  	-	  	Bank Accounts
	Schedule 4.2(f)	  	-	  	Environmental Reports

 8.14 Captions. The section headings appearing in this Agreement are for
convenience of reference only and are not intended, to any extent or for any purpose, to limit or define the text of any section or any subsection hereof. 
 8.15 Construction. The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any exhibits or amendments hereto. 
 8.16 Termination of Agreement. It is understood and agreed that if either Purchaser or Sellers terminate this Agreement pursuant to a right of termination granted hereunder, such termination shall operate to relieve
Purchaser, Sellers and the Company (in which event the defaulting Party shall remain liable as and to the extent provided in this Agreement) from all obligations under this Agreement, except for such obligations as are specifically stated herein to
survive the termination of this Agreement. 
 8.17 Survival. All provisions of this Agreement which are not fully
performed as of Closing shall survive Closing subject to the terms and provisions set forth in Sections 4.3, 4.5 and 4.6, respectively. 
 8.18 Time of Essence. Time is of the essence with respect to this Agreement. 
  

 -26- 

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

  

							
	PURCHASER:
	
	 PRIP 3700, LLC,
 a Delaware limited
liability company

		
	By:	 	Paladin Realty Income Properties, L.P., a Delaware limited partnership
		 		 		 	
		 		 		 	
			
		 	By:	 	Paladin Realty Income Properties, Inc., a Maryland corporation, its general partner
				
		 		 	By:	 	/s/ John A. Gerson
		 		 	Name:	 	John A. Gerson
		 		 	Title:	 	Chief Financial Officer and Executive Vice President

 [SIGNATURES CONTINUED ON THE FOLLOWING PAGES] 

			
	SELLERS:
	
	/s/ Bradley B. Chambers
	BRADLEY B. CHAMBERS
	
	BUCKINGHAM INVESTMENT CORPORATION, an Indiana corporation
		
	By:	 	/s/ Bradley B. Chambers
	Name:	 	Bradley B. Chambers
	Title:	 	President
	
	 THE COMPANY:
  
 SPRINGHURST HOUSING PARTNERS, LLC,
 an Indiana limited liability
company

		
	By:	 	/s/ Bradley B. Chambers
	Name:	 	Bradley B. Chambers
	Title:	 	Member

  
  
  
  
  
  
  
  
  
  

 -2-

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