Document:

Exhibit 10.1

 

UNITED DEVELOPMENT FUNDING INCOME FUND
V

UP TO 50,000,000 COMMON SHARES OF BENEFICIAL
INTEREST

 

EXCLUSIVE DEALER MANAGER AGREEMENT

 

July 25, 2014

 

Realty Capital Securities, LLC

One Beacon Street, 14th Floor

Boston, Massachusetts 02108

 

Ladies and Gentlemen:

 

United Development
Funding Income Fund V (the “Trust”) is a Maryland real estate investment trust that intends to qualify
to be taxed as a real estate investment trust (a “REIT”) for federal income tax purposes beginning with
the taxable year ending December 31, 2014, or the first year during which the Trust begins material operations. The Trust proposes
to offer (a) up to 37,500,000 common shares of beneficial interest, $0.01 par value per share (the “Shares”),
for a purchase price of $20.00 per Share, in the primary offering (the “Primary Offering”), and (b) up
to 12,500,000 Shares for a purchase price of $20.00 per Share for issuance through the Trust’s distribution reinvestment
program (the “DRP” and together with the Primary Offering, the “Offering”)
(subject to the right of the Trust to reallocate such Shares between the Primary Offering and the DRP), all upon the other terms
and subject to the conditions set forth in the Prospectus (as defined in Section 1(a)).

 

Upon the terms and
subject to the conditions contained in this Exclusive Dealer Manager Agreement (this “Agreement”), the
Trust hereby appoints Realty Capital Securities, LLC, a Delaware limited liability company (the “Dealer Manager”),
to act as the exclusive dealer manager for the Offering, and the Dealer Manager desires to accept such engagement.

 

1.          REPRESENTATIONS
AND WARRANTIES OF THE TRUST. The Trust hereby represents, warrants and agrees during the term of this Agreement as follows:

 

(a)          REGISTRATION
STATEMENT AND PROSPECTUS. In connection with the Offering, the Trust has prepared and filed with the Securities and Exchange Commission
(the “Commission”) a registration statement (File No. 333-194162) on Form S-11 for the registration of
the Shares under the Securities Act of 1933, as amended (the “Securities Act”), and the rules and regulations
of the Commission promulgated thereunder (the “Securities Act Rules and Regulations”); one or more amendments
to such registration statement have been or may be so prepared and filed. The registration statement on Form S-11 and the prospectus
contained therein, as finally amended at the date the registration statement is declared effective by the Commission (the “Effective
Date”) are respectively hereinafter referred to as the “Registration Statement” and the
“Prospectus”, except that (i) if the Trust files a post-effective amendment to such registration statement,
then the term “Registration Statement” shall, from and after the declaration of the effectiveness of such post-effective
amendment by the Commission, refer to such registration statement as amended by such post-effective amendment, and the term “Prospectus”
shall refer to the amended prospectus then on file with the Commission, and (ii) if the prospectus filed by the Trust pursuant
to either Rule 424(b) or 424(c) of the Securities Act Rules and Regulations shall differ from the prospectus on file at the time
the Registration Statement or the most recent post-effective amendment thereto, if any, shall have become effective, then the term
“Prospectus” shall refer to such prospectus filed pursuant to either Rule 424(b) or 424(c), as the case may be, from
and after the date on which it shall have been filed. As used herein, the terms “Registration Statement”, “preliminary
Prospectus” and “Prospectus” shall include the documents, if any, incorporated by reference therein. As used
herein, the term “Effective Date” also shall refer to the effective date of each post-effective amendment to the Registration
Statement, unless the context otherwise requires.

 

    	 

    	 

    

 

(b)          DOCUMENTS
INCORPORATED BY REFERENCE. The documents incorporated or deemed to be incorporated by reference in the Prospectus, at the time
they hereafter are filed with the Commission, will comply in all material respects with the requirements of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), and the rules and regulations promulgated thereunder (the
“Exchange Act Rules and Regulations”), and, when read together with the other information in the Prospectus,
at the time the Registration Statement became effective and as of the applicable Effective Date of each post-effective amendment
to the Registration Statement, did not and will not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

 

(c)          COMPLIANCE
WITH THE SECURITIES ACT, ETC. During the term of this Agreement:

 

(i)          the
Registration Statement, the Prospectus and any amendments or supplements thereto have complied, and will comply, in all material
respects with the Securities Act, the Securities Act Rules and Regulations, the Exchange Act and the Exchange Act Rules and Regulations;
and

 

(ii)         the
Registration Statement does not, and any amendment thereto will not, in each case as of the applicable Effective Date, include
any untrue statement of material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein not misleading and the Prospectus does not, and any amendment or supplement thereto will not, as of the applicable
filing date, include any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they are made, not misleading; provided,
however, that the foregoing provisions of this Section 1(c) will not extend to any statements contained in or omitted
from the Registration Statement or the Prospectus that are based upon written information furnished to the Trust by the Dealer
Manager expressly for use in the Registration Statement or Prospectus, it being understood and agreed that the only such information
furnished by the Dealer Manager to the Trust consists of the information described in Sections 8(c)(ii), 8(c)(iii)
and 8(c)(v).

 

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(d)          SECURITIES
MATTERS. There has not been (i) any request by the Commission for any further amendment to the Registration Statement or the Prospectus
or for any additional information, (ii) any issuance by the Commission of any stop order suspending the effectiveness of the Registration
Statement or the institution or, to the Trust’s knowledge, threat of any proceeding for that purpose, or (iii) any notification
with respect to the suspension of the qualification of the Shares for sale in any jurisdiction or any initiation or, to the Trust’s
knowledge, threat of any proceeding for such purpose. The Trust is in compliance in all material respects with all federal and
state securities laws, rules and regulations applicable to it and its activities, including, without limitation, with respect to
the Offering and the sale of the Shares.

 

(e)          TRUST
STATUS. The Trust is a trust duly formed and validly existing under the real estate investment trust law of Maryland, with all
requisite power and authority to enter into this Agreement and to carry out its obligations hereunder.

 

(f)          AUTHORIZATION
OF AGREEMENT. This Agreement is duly and validly authorized, executed and delivered by or on behalf of the Trust and constitutes
a valid and binding agreement of the Trust enforceable in accordance with its terms (except as such enforceability may be limited
by bankruptcy, insolvency, reorganization, moratorium or other similar laws of the United States, any state or any political subdivision
thereof which affect creditors’ rights generally or by equitable principles relating to the availability of remedies or except
to the extent that the enforceability of the indemnity and contribution provisions contained in this Agreement may be limited under
applicable securities laws).

 

The execution and delivery
of this Agreement and the performance of this Agreement, the consummation of the transactions contemplated herein and the fulfillment
of the terms hereof, do not and will not conflict with, or result in a breach of any of the terms and provisions of, or constitute
a default under: (i) the Trust’s or any of its subsidiaries’ declaration of trust, charter, bylaws, or other organizational
documents, as the case may be; (ii) any indenture, mortgage, deed of trust, voting trust agreement, note, lease or other agreement
or instrument to which the Trust or any of its subsidiaries is a party or by which the Trust or any of its subsidiaries or any
of their properties is bound; or (iii) any statute, rule or regulation or order of any court or other governmental agency or body
having jurisdiction over the Trust, any of its subsidiaries or any of their properties. No consent, approval, authorization or
order of any court or other governmental agency or body has been or is required for the performance of this Agreement or for the
consummation by the Trust of any of the transactions contemplated hereby (except as have been obtained under the Securities Act,
the Exchange Act, from the Financial Industry Regulatory Authority (“FINRA”) or as may be required under
state securities or applicable blue sky laws in connection with the offer and sale of the Shares or under the laws of states in
which the Trust may own real properties in connection with its qualification to transact business in such states or as may be required
by subsequent events which may occur). Neither the Trust nor any of its subsidiaries is in violation of its declaration of trust,
charter, bylaws or other organizational documents, as the case may be.

 

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As used in this Agreement,
“Trust MAE” means any event, circumstance, occurrence, fact, condition, change or effect, individually
or in the aggregate, that is, or could reasonably be expected to be, materially adverse to (A) the condition, financial or otherwise,
earnings, business affairs or business prospects of the Trust and its subsidiaries considered as one enterprise, or (B) the ability
of the Trust to perform its obligations under this Agreement or the validity or enforceability of this Agreement or the Shares.

 

(g)          ACTIONS
OR PROCEEDINGS. As of the initial Effective Date, there are no actions, suits or proceedings against, or investigations of, the
Trust or its subsidiaries pending or, to the knowledge of the Trust, threatened, before any court, arbitrator, administrative agency
or other tribunal (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the issuance of the Shares or the consummation
of any of the transactions contemplated by this Agreement, (iii) that might materially and adversely affect the performance by
the Trust of its obligations under or the validity or enforceability of, this Agreement or the Shares, (iv) that might result in
a Trust MAE, or (v) seeking to affect adversely the federal income tax attributes of the Shares except as described in the Prospectus.
The Trust promptly will give notice to the Dealer Manager of the occurrence of any action, suit, proceeding or investigation of
the type referred to above arising or occurring on or after the initial Effective Date.

 

(h)          ESCROW
AGREEMENT. The Trust will enter into an escrow agreement (the “Escrow Agreement”) with the Dealer Manager
and LegacyTexas Bank (the “Escrow Agent”), substantially in the form included as an exhibit to the Registration
Statement, which provides for the establishment of an escrow account (the “Escrow Account”) to receive
and hold subscription funds in respect of Shares of the Trust. Once a minimum of $2,000,000 of subscription funds has been deposited
in the Escrow Account, the Trust will deposit (or cause to be deposited upon instruction to the Dealer Manager and the Soliciting
Dealers (as defined in Section 3(a))) all subscription funds to a designated deposit account in the name of the Trust (the
“Deposit Account”) at a bank which shall be subject to the reasonable prior approval of the Dealer Manager,
subject to any continuing escrow obligations imposed by certain states as described in the Prospectus and the Escrow Agreement.
The Deposit Account shall be subject to a deposit control agreement executed by the depositary, the Trust, and the Dealer Manager
(the “Control Agreement”).

 

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(i)          SALES
LITERATURE. Any supplemental sales literature, advertisement (including, without limitation any “broker-dealer use only”
material) or free writing prospectus, regardless of how labeled or described, used in addition to the Prospectus in connection
with the Offering which previously has been, or hereafter is, furnished or approved by the Trust (collectively, “Approved
Material”), shall, to the extent required, be filed with and approved by the appropriate securities agencies and
bodies, provided that the Dealer Manager will make all FINRA filings, to the extent required. Any and all Approved Material did
not or will not at the time provided for use include any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading.

 

(j)          AUTHORIZATION
OF SHARES. The Shares have been duly authorized and, upon payment therefor as provided in this Agreement and the Prospectus, will
be validly issued, fully paid and nonassessable and will conform to the description thereof contained in the Prospectus.

 

(k)          TAXES.
Any taxes, fees and other governmental charges in connection with the execution and delivery of this Agreement or the execution,
delivery and sale of the Shares have been or will be paid when due.

 

(l)           INVESTMENT
COMPANY. The Trust is not, and neither the offer or sale of the Shares nor any of the activities of the Trust will cause the Trust
to be, an “investment company” or under the control of an “investment company” as such terms are defined
in the Investment Company Act of 1940, as amended.

 

(m)         TAX
RETURNS. The Trust has filed all material federal, state and foreign income tax returns required to be filed by or on behalf of
the Trust on or before the due dates therefor (taking into account all extensions of time to file) and has paid or provided for
the payment of all such material taxes indicated by such tax returns and all assessments received by the Trust to the extent that
such taxes or assessments have become due.

 

(n)          REIT
QUALIFICATIONS. The Trust will make a timely election to be subject to tax as a REIT pursuant to Sections 856 through 860 of the
Internal Revenue Code of 1986, as amended (the “Code”), for its taxable year ended December 31, 2014,
or the first year during which the Trust begins material operations. The Trust has been organized and operated in conformity with
the requirements for qualification and taxation as a REIT. The Trust’s current and proposed method of operation as described
in the Registration Statement and the Prospectus will enable it to continue to meet the requirements for qualification and taxation
as a REIT under the Code.

 

(o)          INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM. The accountants who have certified certain financial statements appearing in the Prospectus
are an independent registered public accounting firm within the meaning of the Securities Act and the Securities Act Rules and
Regulations. Such accountants have not been engaged by the Trust to perform any “prohibited activities” (as defined
in Section 10A of the Exchange Act).

 

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The Trust and its subsidiaries
each maintains a system of internal accounting and other controls sufficient to provide reasonable assurances that: (i) transactions
are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally accepted accounting principles as applied in the United
States and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. Except as described in the Registration Statement, since
the end of the Trust’s most recent audited fiscal year, there has been (A) no material weakness in the Trust’s internal
control over financial reporting (whether or not remediated), and (B) no change in the Trust’s internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial
reporting.

 

(p)          ACCOUNTING
SYSTEM. To the extent required by federal and state securities laws, the Trust maintains a system of internal accounting controls,
including disclosure controls and procedures, internal controls over accounting matters and financial reporting, an internal audit
function and legal and regulatory compliance controls, sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with U.S. generally accepted accounting principles and to maintain accountability
for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and
(iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is
taken with respect to any differences. There has not been and is no material weakness in the Trust’s internal control over
financial reporting (whether or not remediated) and since the Trust’s formation, there has been no change in the Trust’s
internal control over financial reporting that has materially affected, or could materially affect, the Trust’s internal
control over financial reporting.

 

(q)          PREPARATION
OF THE FINANCIAL STATEMENTS. The financial statements filed with the Commission as a part of the Registration Statement and included
in the Prospectus present fairly the consolidated financial position of the Trust and its subsidiaries as of and at the dates indicated
and the results of their operations and cash flows for the periods specified. Such financial statements have been prepared in conformity
with generally accepted accounting principles as applied in the United States applied on a consistent basis throughout the periods
involved, except as may be expressly stated in the related notes thereto. No other financial statements or supporting schedules
are required to be included in the Registration Statement or any applicable Prospectus.

 

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(r)          MATERIAL
ADVERSE CHANGE. Since the respective dates as of which information is given in the Registration Statement and the Prospectus, except
as may otherwise be stated therein or contemplated thereby, there has not occurred a Trust MAE, whether or not arising in the ordinary
course of business.

 

(s)          GOVERNMENT
PERMITS. The Trust and its subsidiaries possess such certificates, authorities or permits issued by the appropriate state, federal
or foreign regulatory agencies or bodies necessary to conduct the business now operated by them, other than those the failure to
possess or own would not have, individually or in the aggregate, a Trust MAE. Neither the Trust nor any of its subsidiaries has
received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit which,
individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a Trust MAE.

 

(t)          PROPERTIES.
Except as otherwise disclosed in the Prospectus and except as would not result in, individually or in the aggregate, a Trust MAE,
(i) all properties and assets described in the Prospectus are owned with good and marketable title by the Trust and its subsidiaries,
and (ii) all liens, charges, encumbrances, claims or restrictions on or affecting any of the properties and assets of any of the
Trust or its subsidiaries which are required to be disclosed in the Prospectus are disclosed therein.

 

(u)          HAZARDOUS
MATERIALS. The Trust does not have any knowledge of (i) the unlawful presence of any hazardous substances, hazardous materials,
toxic substances or waste materials (collectively, “Hazardous Materials”) on any of the properties owned
by it or its subsidiaries or subject to mortgage loans owned by the Trust or any of its subsidiaries, or (ii) any unlawful spills,
releases, discharges or disposal of Hazardous Materials that have occurred or are presently occurring off such properties as a
result of any construction on or operation and use of such properties, which presence or occurrence in the case of clauses (i)
and (ii) would result in, individually or in the aggregate, a Trust MAE. In connection with the properties owned by the Trust and
its subsidiaries or subject to mortgage loans owned by the Trust or any of its subsidiaries, the Trust has no knowledge of any
material failure to comply with all applicable local, state and federal environmental laws, regulations, ordinances and administrative
and judicial orders relating to the generation, recycling, reuse, sale, storage, handling, transport and disposal of any Hazardous
Materials.

 

2.           REPRESENTATIONS
AND WARRANTIES OF THE DEALER MANAGER. The Dealer Manager represents and warrants to the Trust during the term of this Agreement
that:

 

(a)          ORGANIZATION
STATUS. The Dealer Manager is a limited liability company duly organized, validly existing and in good standing under the laws
of the State of Delaware, with all requisite power and authority to enter into this Agreement and to carry out its obligations
hereunder.

 

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(b)          AUTHORIZATION
OF AGREEMENT. This Agreement has been duly authorized, executed and delivered by the Dealer Manager, and assuming due authorization,
execution and delivery of this Agreement by the Trust, will constitute a valid and legally binding agreement of the Dealer Manager
enforceable against the Dealer Manager in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to
enforceability and except that rights to indemnity and contribution hereunder may be limited by applicable law and public policy.

 

(c)          ABSENCE
OF CONFLICT OR DEFAULT. The execution and delivery of this Agreement, the consummation of the transactions herein contemplated
and compliance with the terms of this Agreement by the Dealer Manager will not conflict with or constitute a default under (i)
its organizational documents, (ii) any indenture, mortgage, deed of trust or lease to which the Dealer Manager is a party or by
which it may be bound, or to which any of the property or assets of the Dealer Manager is subject, or (iii) any rule, regulation,
writ, injunction or decree of any government, governmental instrumentality or court, domestic or foreign, having jurisdiction over
the Dealer Manager or its assets, properties or operations, except in the case of clause (ii) or (iii) for such conflicts or defaults
that would not individually or in the aggregate have a material adverse effect on the condition (financial or otherwise), business,
properties or results of operations of the Dealer Manager.

 

(d)          BROKER-DEALER
REGISTRATION; FINRA MEMBERSHIP. The Dealer Manager is, and during the term of this Agreement will be, duly registered as a broker-dealer
pursuant to the provisions of the Exchange Act, a member in good standing of FINRA, and a broker or dealer duly registered as such
in those states where the Dealer Manager is required to be registered in order to carry out the Offering as contemplated by this
Agreement. Moreover, the Dealer Manager’s employees and representatives have all required licenses and registrations to act
under this Agreement. There is no provision in the Dealer Manager’s FINRA membership agreement that would restrict the ability
of the Dealer Manager to carry out the Offering as contemplated by this Agreement.

 

(e)          DISCLOSURE.
The information under the caption “Plan of Distribution” in the Prospectus insofar as it relates to the Dealer Manager,
and all other information furnished to the Trust by the Dealer Manager in writing specifically for use in the Registration Statement,
any preliminary Prospectus or the Prospectus, does not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading.

 

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3.          OFFERING
AND SALE OF THE SHARES. Upon the terms and subject to the conditions set forth in this Agreement, the Trust hereby appoints
the Dealer Manager as its agent and exclusive distributor to solicit and to retain the Soliciting Dealers (as defined in Section
3(a)) to solicit subscriptions for the Shares at the subscription price to be paid in cash. The Dealer Manager hereby accepts
such agency and exclusive distributorship and agrees to use its reasonable best efforts to sell or cause to be sold the Shares
in such quantities and to such persons in accordance with such terms as are set forth in this Agreement, the Prospectus and the
Registration Statement. The Dealer Manager shall do so during the period commencing on the initial Effective Date and ending on
the earliest to occur of the following: (1) the later of (x) two years after the initial Effective Date of the Registration Statement
and (y) at the Trust’s election, the date on which the Trust is permitted to extend the Offering in accordance with the rules
of the Commission and in accordance with the Prospectus; (2) the acceptance by the Trust of subscriptions for 50,000,000 Shares;
(3) the termination of the Offering by the Trust, which the Trust shall have the right to terminate in its sole and absolute discretion
at any time, provided that if such termination shall occur at any time during the 180-day period following the initial Effective
Date, the Trust shall not commence or undertake any preparations to commence another offering of Shares or any similar securities
prior to the 181st date following the initial Effective Date; (4) the termination of the effectiveness of the Registration Statement,
provided that if such termination shall occur at any time during the 180-day period following the initial Effective Date, the Trust
shall not commence or undertake any preparations to commence another offering of Shares or any similar securities prior to the
181st date following the initial Effective Date; and (5) the liquidation or dissolution of the Trust (such period being the “Offering
Period”).

 

The number of Shares, if any, to be reserved
for sale by each Soliciting Dealer may be determined, from time to time, by the Dealer Manager upon prior consultation with the
Trust. In the absence of such determination, the Trust shall, subject to the provisions of Section 3(b), accept Subscription
Agreements based upon a first-come, first accepted reservation or other similar method. Under no circumstances will the Dealer
Manager be obligated to underwrite or purchase any Shares for its own account and, in soliciting purchases of Shares, the Dealer
Manager shall act solely as the Trust’s agent and not as an underwriter or principal.

 

(a)          SOLICITING
DEALERS. The Shares offered and sold through the Dealer Manager under this Agreement shall be offered and sold only by the Dealer
Manager and other securities dealers the Dealer Manager may retain (collectively the “Soliciting Dealers”);
provided, however, that (i) the Dealer Manager reasonably believes that all Soliciting Dealers are registered with the Commission,
members of FINRA and are duly licensed or registered by the regulatory authorities in the jurisdictions in which they will offer
and sell Shares, (ii) all such engagements are evidenced by written agreements, the terms and conditions of which substantially
conform to the form of Soliciting Dealers Agreement approved by the Trust and the Dealer Manager and attached as Exhibit
A to this Agreement (the “Soliciting Dealers Agreement”), and (iii) the Trust shall have previously
approved each Soliciting Dealer (such approval not to be unreasonably withheld or delayed).

 

(b)          SUBSCRIPTION
DOCUMENTS. Each person desiring to purchase Shares through the Dealer Manager, or any other Soliciting Dealer, will be required
to complete and execute the subscription documents described in the Prospectus.

 

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(c)          COMPLETED
SALE. A sale of a Share shall be deemed by the Trust to be completed for purposes of Section 3(d) if and only if (i) the
Trust has received a properly completed and executed subscription agreement, together with payment of the full purchase price of
each purchased Share, from an investor who satisfies the applicable suitability standards and minimum purchase requirements set
forth in the Registration Statement as determined by the Soliciting Dealer, or the Dealer Manager, as applicable, in accordance
with the provisions of this Agreement, (ii) the Trust has accepted such subscription, and (iii) such investor has been admitted
as a shareholder of the Trust. In addition, no sale of Shares shall be completed until at least five (5) business days after the
date on which the subscriber receives a copy of the Prospectus. The Dealer Manager hereby acknowledges and agrees that the Trust,
in its sole and absolute discretion, may accept or reject any subscription, in whole or in part, for any reason whatsoever or no
reason, and no commission or dealer manager fee will be paid to the Dealer Manager with respect to that portion of any subscription
which is rejected.

 

(d)          DEALER-MANAGER
COMPENSATION.

 

(i)          Subject
to the volume discounts and other special circumstances described in or otherwise provided in the “Plan of Distribution”
section of the Prospectus or this Section 3(d), the Trust agrees to pay the Dealer Manager selling commissions in the amount
of seven percent (7%) of the selling price of each Share for which a sale is completed from the Shares offered in the Primary Offering.
Alternatively, if the Soliciting Dealer elects to receive selling commissions equal to seven and one-half percent (7.5%) in accordance
with the Soliciting Dealers Agreement, subject to Section 3(c), the Trust agrees to pay the Dealer Manager selling commissions
in the amount of seven and one-half percent (7.5%) of the selling price of each Share for which a sale is completed from the Shares
offered in the Primary Offering, two and one-half percent (2.5%) of which selling commissions shall be payable at the time of such
sale and one percent (1%) of which shall be paid on each anniversary of the closing of such sale up to and including the fifth
anniversary of the closing of such sale. The Trust will not pay selling commissions for sales of Shares pursuant to the DRP, and
the Trust will pay reduced selling commissions or may eliminate commissions on certain sales of Shares, including the reduction
or elimination of selling commissions in accordance with, and on the terms set forth in, the Prospectus. The Dealer Manager will
reallow all the selling commissions, subject to federal and state securities laws, to the Soliciting Dealer who sold the Shares,
as described more fully in the Soliciting Dealers Agreement.

 

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(ii)         Subject
to the special circumstances described in or otherwise provided in the “Plan of Distribution” section of the Prospectus
or this Section 3(d), as compensation for acting as the dealer manager, the Trust will pay the Dealer Manager a dealer manager
fee in the amount of three percent (3%) of the selling price of each Share for which a sale is completed from the Shares offered
in the Primary Offering (the “Dealer Manager Fee”). Notwithstanding the foregoing, the Dealer Manager
Fee will be reduced to two and one-half percent (2.5%) if the selling commission is seven and one-half percent (7.5%) as described
above. No Dealer Manager Fee will be paid in connection with Shares sold pursuant to the DRP. The Dealer Manager may retain or
re-allow all or a portion of the Dealer Manager Fee, subject to federal and state securities laws, to the Soliciting Dealer who
sold the Shares, as described more fully in the Soliciting Dealers Agreement. The Dealer Manager will expend the portion of the
Dealer Manager Fee retained by the Dealer Manager and not re-allowed substantially in accordance with an expenditure budget approved
by the Trust, such approval not to be unreasonably withheld or delayed. If the Dealer Manager desires to expend any portion of
the Dealer Manager Fee retained by the Dealer Manager in a manner that is in material variance from such agreed-upon expenditure
budget, then the Dealer Manager shall obtain the prior approval of the Trust, such approval not to be unreasonably withheld or
delayed.

 

(iii)        All
sales commissions and any Dealer Manager Fee payable to the Dealer Manager will be paid within thirty (30) days after the investor
subscribing for the Shares is admitted as a shareholder of the Trust, in an amount equal to the sales commissions and Dealer Manager
Fee, respectively, payable with respect to such Shares.

 

(iv)        In
no event shall the total aggregate underwriting compensation payable to the Dealer Manager and any Soliciting Dealers participating
in the Offering, including, but not limited to, selling commissions and the Dealer Manager Fee, exceed ten percent (10%) of gross
offering proceeds from the Primary Offering in the aggregate.

 

(v)         Notwithstanding
anything to the contrary contained herein, if the Trust pays any selling commission to the Dealer Manager for sale by a Soliciting
Dealer of one or more Shares and the subscription is rescinded as to one or more of the Shares covered by such subscription, then
the Trust shall decrease the next payment of selling commissions or other compensation otherwise payable to the Dealer Manager
by the Trust under this Agreement by an amount equal to the commission rate established in this Section 3(d), multiplied
by the number of Shares as to which the subscription is rescinded. If no payment of selling commissions or other compensation is
due to the Dealer Manager after such withdrawal occurs, then the Dealer Manager shall pay the amount specified in the preceding
sentence to the Trust within a reasonable period of time not to exceed thirty (30) days following receipt of notice by the Dealer
Manager from the Trust stating the amount owed as a result of rescinded subscriptions.

 

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(e)          REASONABLE
BONA FIDE DUE DILIGENCE EXPENSES. Subject to the limitations described in or otherwise provided in the Prospectus, the Trust
shall, within ten (10) days after the Trust has received detailed and itemized invoice(s) relating thereto, reimburse the Dealer
Manager or any Soliciting Dealer for reasonable bona fide due diligence expenses incurred by the Dealer Manager or any Soliciting
Dealer, subject to the Trust having given its prior approval of the incurrence of such expenses (such approval not to be unreasonably
withheld or delayed). The Trust shall only reimburse the Dealer Manager or any Soliciting Dealer for such approved bona fide
due diligence expenses to the extent such expenses have actually been incurred and are supported by detailed and itemized invoice(s)
provided to the Trust.

 

4.          CONDITIONS
TO THE DEALER MANAGER’S OBLIGATIONS. The Dealer Manager’s obligations hereunder shall be subject to the following
terms and conditions, and if all such conditions are not satisfied or waived by the Dealer Manager on or before the initial Effective
Date or at any time thereafter until the Termination Date, then no funds shall be released (1) from the Escrow Account if the Dealer
Manager provides notice to this effect to the Trust and the Escrow Agent, and (2) from the Deposit Account if the Dealer Manager
provides notice to this effect to the Trust and LegacyTexas Bank:

 

(a)          The
representations and warranties on the part of the Trust contained in this Agreement hereof shall be true and correct in all material
respects and the Trust shall have complied with its covenants, agreements and obligations contained in this Agreement in all material
respects;

 

(b)          The
Registration Statement shall have become effective and no stop order suspending the effectiveness of the Registration Statement
shall have been issued by the Commission and, to the best knowledge of the Trust, no proceedings for that purpose shall have been
instituted, threatened or contemplated by the Commission; and any request by the Commission for additional information (to be included
in the Registration Statement or Prospectus or otherwise) shall have been complied with to the reasonable satisfaction of the Dealer
Manager.

 

(c)          The
Registration Statement and the Prospectus, and any amendment or any supplement thereto, shall not contain any untrue statement
of material fact, or omit to state a material fact that is required to be stated therein or is necessary to make the statements
therein not misleading.

 

(d)          On
the Effective Date and at or prior to the fifth business day following the Effective Date of each post-effective amendment to the
Registration Statement that includes or incorporates by reference the audited financial statements for the preceding fiscal year,
the Dealer Manager shall have received from Whitley Penn LLP, independent registered public accountants for the Trust, (i) a letter,
dated the applicable date, addressed to the Dealer Manager, in form and substance satisfactory to the Dealer Manager, containing
statements and information of the type ordinarily included in accountant’s “comfort letters” to placement agents
or dealer managers, delivered according to Statement of Auditing Standards No. 72 (or any successor bulletin), with respect to
the audited financial statements and certain financial information contained in the Registration Statement and the Prospectus,
and (ii) confirming that they are (A) independent registered public accountants as required by the Securities Act, and (B) in compliance
with the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X.

 

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(e)          At
or prior to the fifth business day following the effective date of each post-effective amendment to the Registration Statement
(other than post-effective amendments filed solely pursuant to Rule 462(d) under the Securities Act and other than the post-effective
amendment referred to in Section 4(d)), the Dealer Manager shall have received from Whitley Penn LLP, independent public
or certified public accountants for the Trust, a letter, dated such date, in form and substance satisfactory to the Dealer Manager,
to the effect that they reaffirm the statements made in the letter furnished by them pursuant to Section 4(d), except that
the specified date referred to therein for the carrying out of procedures shall be no more than three business days prior to the
date of such letter.

 

(f)          At
or prior to the Effective Date and at or prior to the fifth business day following the effective date of each post-effective amendment
to the Registration Statement (other than post-effective amendments filed solely pursuant to Rule 462(d) under the Securities Act),
the Dealer Manager shall have received a written certificate executed by the Chief Executive Officer or President of the Trust
and the Chief Financial Officer of the Trust, dated as of the applicable date, to the effect that: (i) the representations and
warranties of the Trust set forth in this Agreement are true and correct in all material respects with the same force and effect
as though expressly made on and as of the applicable date; and (ii) the Trust has complied in all material respects
with all the agreements hereunder and satisfied all the conditions on their part to be performed or satisfied hereunder at or prior
to the applicable date.

 

5.           COVENANTS
OF THE TRUST. The Trust covenants and agrees with the Dealer Manager as follows:

 

(a)          REGISTRATION
STATEMENT. The Trust will use commercially reasonable efforts to cause the Registration Statement and any subsequent amendments
thereto to become effective as promptly as possible and will furnish a copy of any proposed amendment or supplement of the Registration
Statement or the Prospectus to the Dealer Manager.

 

(b)          COMMISSION
ORDERS. If the Commission shall issue any stop order or any other order preventing or suspending the use of the Prospectus, or
shall institute any proceedings for that purpose, then the Trust will promptly notify the Dealer Manager and use its commercially
reasonable efforts to prevent the issuance of any such order and, if any such order is issued, to use commercially reasonable efforts
to obtain the removal thereof as promptly as possible.

 

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(c)          BLUE
SKY QUALIFICATIONS. The Trust will use commercially reasonable efforts to qualify the Shares for offering and sale under the securities
or blue sky laws of such jurisdictions as the Dealer Manager and the Trust shall mutually agree upon and to make such applications,
file such documents and furnish such information as may be reasonably required for that purpose. The Trust will, at the Dealer
Manager’s request, furnish the Dealer Manager with a copy of such papers filed by the Trust in connection with any such qualification.
The Trust will promptly advise the Dealer Manager of the issuance by such securities administrators of any stop order preventing
or suspending the use of the Prospectus or of the institution of any proceedings for that purpose, and will use its commercially
reasonable efforts to prevent the issuance of any such order and if any such order is issued, to use its commercially reasonable
efforts to obtain the removal thereof as promptly as possible. The Trust will furnish the Dealer Manager with a Blue Sky Survey
dated as of the initial Effective Date, which will be supplemented to reflect changes or additions to the information disclosed
in such survey.

 

(d)          AMENDMENTS
AND SUPPLEMENTS. If, at any time when a Prospectus relating to the Shares is required to be delivered under the Securities Act,
any event shall have occurred to the knowledge of the Trust, or the Trust receives notice from the Dealer Manager that it believes
such an event has occurred, as a result of which the Prospectus or any Approved Material as then amended or supplemented would
include any untrue statement of a material fact, or omit to state a material fact necessary to make the statements therein not
misleading in light of the circumstances existing at the time it is so required to be delivered to a subscriber, or if it is necessary
at any time to amend the Registration Statement or supplement the Prospectus relating to the Shares to comply with the Securities
Act, then the Trust will promptly notify the Dealer Manager thereof (unless the information shall have been received from the Dealer
Manager) and will prepare and file with the Commission an amendment or supplement which will correct such statement or effect such
compliance to the extent required, and shall make available to the Dealer Manager thereof sufficient copies for its own use and/or
distribution to the Soliciting Dealers.

 

(e)          REQUESTS
FROM COMMISSION. The Trust will promptly advise the Dealer Manager of any request made by the Commission or a state securities
administrator for amending the Registration Statement, supplementing the Prospectus or for additional information.

 

(f)          COPIES
OF REGISTRATION STATEMENT. The Trust will furnish the Dealer Manager with one signed copy of the Registration Statement, including
its exhibits, and such additional copies of the Registration Statement, without exhibits, and the Prospectus and all amendments
and supplements thereto, which are finally approved by the Commission, as the Dealer Manager may reasonably request for sale of
the Shares.

 

(g)          QUALIFICATION
TO TRANSACT BUSINESS. The Trust will take all steps necessary to ensure that at all times the Trust will validly exist as a Maryland
corporation and will be qualified to do business in all jurisdictions in which the conduct of its business requires such qualification
and where such qualification is required under local law.

 

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(h)          AUTHORITY
TO PERFORM AGREEMENTS. The Trust undertakes to obtain all consents, approvals, authorizations or orders of any court or governmental
agency or body which are required for the Trust’s performance of this Agreement and under its declaration of trust and bylaws
for the consummation of the transactions contemplated hereby and thereby, respectively, or the conducting by the Trust of the business
described in the Prospectus.

 

(i)          SALES
LITERATURE. The Trust will furnish to the Dealer Manager as promptly as shall be practicable upon request any Approved Material
(provided that the use of said material has been first approved for use by all appropriate regulatory agencies). Any supplemental
sales literature, advertisement or free writing prospectus, regardless of how labeled or described, used in addition to the Prospectus
in connection with the Offering which is furnished or approved by the Trust (including, without limitation, Approved Material)
shall, to the extent required, be filed with and, to the extent required, approved by the appropriate securities agencies and bodies,
provided that the Dealer Manager will make all FINRA filings, to the extent required. The Trust will be responsible for all Approved
Material.

 

(j)          CERTIFICATES
OF COMPLIANCE. The Trust shall provide, from time to time upon request of the Dealer Manager, certificates of its chief executive
officer and chief financial officer of compliance by the Trust of the requirements of this Agreement.

 

(k)          USE
OF PROCEEDS. The Trust will apply the proceeds from the sale of the Shares as set forth in the Prospectus.

 

(l)          CUSTOMER
INFORMATION. The Trust shall:

 

(i)          abide
by and comply with (A) the privacy standards and requirements of the Gramm-Leach-Bliley Act of 1999 (the “GLB Act”),
(B) the privacy standards and requirements of any other applicable federal or state law, and (C) its own internal privacy policies
and procedures, each as may be amended from time to time;

 

(ii)         refrain
from the use or disclosure of nonpublic personal information (as defined under the GLB Act) of all customers who have opted out
of such disclosures except as necessary to service the customers or as otherwise necessary or required by applicable law; and

 

(iii)        determine
which customers have opted out of the disclosure of nonpublic personal information by periodically reviewing and, if necessary,
retrieving an aggregated list of such customers from the Soliciting Dealers (the “List”) to identify customers
that have exercised their opt-out rights. If either party uses or discloses nonpublic personal information of any customer for
purposes other than servicing the customer, or as otherwise required by applicable law, that party will consult the List to determine
whether the affected customer has exercised his or her opt-out rights. Each party understands that it is prohibited from using
or disclosing any nonpublic personal information of any customer that is identified on the List as having opted out of such disclosures.

 

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(m)          DEALER
MANAGER’S REVIEW OF PROPOSED AMENDMENTS AND SUPPLEMENTS. Prior to amending or supplementing the Registration Statement, any
preliminary prospectus or the Prospectus (including any amendment or supplement through incorporation of any report filed under
the Exchange Act), the Trust shall furnish to the Dealer Manager for review, a reasonable amount of time prior to the proposed
time of filing or use thereof, a copy of each such proposed amendment or supplement, and the Trust shall not file or use any such
proposed amendment or supplement without the Dealer Manager’s consent, which consent shall not be unreasonably withheld or
delayed.

 

(n)          CERTAIN
PAYMENTS. Without the prior consent of the Dealer Manager, neither the Trust nor or any of its affiliates will make any payment
(cash or non-cash) to any associated person or registered representative of the Dealer Manager.

 

(o)          DEPOSIT
ACCOUNT. Once subscription funds standing to the credit of the Escrow Account aggregate a minimum of $2,000,000 in respect of Shares
of the Trust, subject to any continuing escrow obligations imposed by certain states as described in the Prospectus, the Trust
will deposit (or cause to be deposited upon instruction to the Dealer Manager and the Soliciting Dealers) such $2,000,000 sum as
well as all subsequent subscription funds, in the Deposit Account. At all times until the Termination Date, the Deposit Account
shall be subject to the Control Agreement that will provide, among other things, that no funds shall be able to be withdrawn from
the Deposit Account once the Dealer Manager provides notice to the Trust and LegacyTexas Bank that a condition set forth in Section
4 has not been satisfied by the Trust or waived by the Dealer Manager. Such restriction on withdrawal shall continue until
the Dealer Manager notifies the Trust and LegacyTexas Bank that funds in the Deposit Account can be released upon order of the
Trust.

 

6.           COVENANTS
OF THE DEALER MANAGER. The Dealer Manager covenants and agrees with the Trust as follows:

 

(a)          COMPLIANCE
WITH LAWS. With respect to the Dealer Manager’s participation and the participation by each Soliciting Dealer in the offer
and sale of the Shares (including, without limitation, any resales and transfers of Shares), the Dealer Manager agrees, and each
Soliciting Dealer in its Soliciting Dealer Agreement will agree, to comply in all material respects with all applicable requirements
of the Securities Act, the Securities Act Rules and Regulations, the Exchange Act, the Exchange Act Rules and Regulations and all
other federal regulations applicable to the Offering, the sale of Shares and with all applicable state securities or blue sky laws,
and the Rules of the FINRA applicable to the Offering, from time to time in effect, specifically including, but not in any way
limited to, Conduct Rules 2340, 2420, 2730, 2740, 2750 and 2810 therein. The Dealer Manager will not offer the Shares for sale
in any jurisdiction unless and until it has been advised that the Shares are either registered in accordance with, or exempt from,
the securities and other laws applicable thereto.

 

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In addition, the Dealer Manager
shall, in accordance with applicable law or as prescribed by any state securities administrator, provide, or require in the Soliciting
Dealer Agreement that the Soliciting Dealer shall provide, to any prospective investor copies of any prescribed document which
is part of the Registration Statement and any supplements thereto during the course of the Offering and prior to the sale. The
Trust may provide the Dealer Manager with certain Approved Material to be used by the Dealer Manager and the Soliciting Dealers
in connection with the solicitation of purchasers of the Shares. The Dealer Manager agrees not to deliver the Approved Material
to any person prior to the initial Effective Date. If the Dealer Manager elects to use such Approved Material after the initial
Effective Date, then the Dealer Manager agrees that such material shall not be used by it in connection with the solicitation of
purchasers of the Shares and that it will direct Soliciting Dealers not to make such use unless in each case the Approved Material
is accompanied or preceded by the Prospectus, as then currently in effect, and as it may be amended or supplemented in the future.
The Dealer Manager agrees that it will not use any Approved Material other than that provided to the Dealer Manager by the Trust
for use in the Offering. The use of any other sales material is expressly prohibited.

 

(b)          NO
ADDITIONAL INFORMATION. In offering the Shares for sale, the Dealer Manager shall not, and each Soliciting Dealer shall agree not
to, give or provide any information or make any representation other than those contained in the Prospectus or the Approved Material.

 

(c)          SALES
OF SHARES. The Dealer Manager shall, and each Soliciting Dealer shall agree to, solicit purchases of the Shares only in the jurisdictions
in which the Dealer Manager and such Soliciting Dealer are legally qualified to so act and in which the Dealer Manager and each
Soliciting Dealer have been advised by the Trust that such solicitations can be made.

 

(d)          SUBSCRIPTION
AGREEMENT. The Dealer Manager will comply in all material respects with the subscription procedures and “Plan of Distribution”
set forth in the Prospectus, and with respect to any direct sales made by the Dealer Manager, with the transmittal of funds procedures
set forth in Section 6(m). Subscriptions will be submitted by the Dealer Manager and each Soliciting Dealer to the Trust
only on the form which is included as Exhibit B to the Prospectus. The Dealer Manager understands and acknowledges, and each Soliciting
Dealer shall acknowledge, that the Subscription Agreement must be executed and initialed by the subscriber as provided for by the
Subscription Agreement.

 

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(e)          SUITABILITY.
With respect to the Primary Offering, the Dealer Manager will offer Shares, and in its agreement with each Soliciting Dealer will
require that the Soliciting Dealer offer Shares, only to persons that it has reasonable grounds to believe meet the financial qualifications
set forth in the Prospectus or in any suitability letter or memorandum sent to it by the Trust and will only make offers to persons
in the states in which it is advised in writing by the Trust that the Shares are qualified for sale or that such qualification
is not required. In offering Shares, the Dealer Manager will comply, and in its agreements with the Soliciting Dealers, the Dealer
Manager will require that the Soliciting Dealers comply, with the provisions of all applicable rules and regulations relating to
suitability of investors, including without limitation the FINRA Conduct Rules and the provisions of Article III.C. of the Statement
of Policy Regarding Real Estate Investment Trusts of the North American Securities Administrators Association, Inc., as revised
and adopted on May 7, 2007 (the “NASAA Guidelines”). The Dealer Manager agrees that in recommending the
purchase of the Shares in the Primary Offering to an investor, the Dealer Manager and each person associated with the Dealer Manager
that make such recommendation shall have, and each Soliciting Dealer in its Soliciting Dealer Agreement shall agree with respect
to investors to which it makes a recommendation shall agree that it shall have, reasonable grounds to believe, on the basis of
information obtained from the investor concerning the investor’s age, investment objectives, investment experience, other
investments, income, net worth, financial situation and needs, and any other information known by the Dealer Manager, the person
associated with the Dealer Manager or the Soliciting Dealer that: (i) the investor is or will be in a financial position appropriate
to enable the investor to realize to a significant extent the benefits described in the Prospectus, including the tax benefits
where they are a significant aspect of the Trust; (ii) the investor meets the applicable minimum income and net worth standards
provided in the Prospectus and has a fair market net worth sufficient to sustain the risks inherent in the program, including loss
of investment and lack of liquidity; (iii) the investor has an apparent understanding of the fundamental risks of the investment,
the risk that the investor may lose the entire investment, the lack of liquidity, the restrictions on transferability and the tax
consequences of the investment; and (iv) an investment in the Shares offered in the Primary Offering is otherwise suitable for
the investor. The Dealer Manager agrees as to investors to whom it makes a recommendation with respect to the purchase of the Shares
in the Primary Offering (and each Soliciting Dealer in its Soliciting Dealer Agreement shall agree, with respect to Investors to
whom it makes such recommendations) to maintain in the files of the Dealer Manager (or the Soliciting Dealer, as applicable) documents
disclosing the basis upon which the determination of suitability was reached as to each investor. In making the determinations
as to financial qualifications and as to suitability required by the NASAA Guidelines, the Dealer Manager and Soliciting Dealers
may rely on (A) representations from investment advisers who are not affiliated with a Soliciting Dealer, banks acting as trustees
or fiduciaries, and (B) information it has obtained from a prospective investor, including such information as the investment objectives,
other investments, financial situation and needs of the person or any other information known by the Dealer Manager (or Soliciting
Dealer, as applicable), after due inquiry. Notwithstanding the foregoing, the Dealer Manager shall not, and each Soliciting Dealer
shall agree not to, execute any transaction in the Trust in a discretionary account without prior written approval of the transaction
by the customer.

 

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(f)          SUITABILITY
RECORDS. The Dealer Manager shall, and each Soliciting Dealer shall agree to, maintain, for at least six years or for a period
of time not less than that required in order to comply with all applicable federal, state and other regulatory requirements, whichever
is later, a record of the information obtained to determine that an investor meets the suitability standards imposed on the offer
and sale of the Shares (both at the time of the initial subscription and at the time of any additional subscriptions) and a representation
of the investor that the investor is investing for the investor’s own account or, in lieu of such representation, information
indicating that the investor for whose account the investment was made met the suitability standards. The Trust agrees that the
Dealer Manager can satisfy its obligation by contractually requiring such information to be maintained by the investment advisers
or banks referred to in Section 6(e).

 

(g)          SOLICITING
DEALER AGREEMENTS. All engagements of the Soliciting Dealers will be evidenced by a Soliciting Dealer Agreement.

 

(h)          ELECTRONIC
DELIVERY. If it intends to use electronic delivery to distribute the Prospectus to any person, that it will comply with all applicable
requirements of the Commission, the Blue Sky laws and/or FINRA and any other laws or regulations related to the electronic delivery
of documents.

 

(i)           COORDINATION.
The Trust and the Dealer Manager shall have the right, but not the obligation, to meet with key personnel of the other on an ongoing
and regular basis to discuss the conduct of the officers.

 

(j)           AML
COMPLIANCE. Although acting as a wholesale distributor and not itself selling shares directly to investors, the Dealer Manager
represents to the Trust that it has established and implemented anti-money laundering compliance programs (“AML Program”)
in accordance with applicable law, including applicable FINRA Conduct Rules, Exchange Act Rules and Regulations and the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act) of
2001, as amended (the “USA PATRIOT Act”), specifically including, but not limited to, Section 352 of
the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 (the “Money Laundering Abatement
Act”, and together with the USA PATRIOT Act, the “AML Rules”), reasonably expected to detect
and cause the reporting of suspicious transactions in connection with the offering and sale of the Shares. The Dealer Manager further
represents that it is currently in compliance with all AML Rules, specifically including, but not limited to, the Customer Identification
Program requirements under Section 326 of the Money Laundering Abatement Act, and the Dealer Manager hereby covenants to remain
in compliance with such requirements and shall, upon request by the Trust, provide a certification to the Trust that, as of the
date of such certification (i) its AML Program is consistent with the AML Rules, and (ii) it is currently in compliance with all
AML Rules, specifically including, but not limited to, the Customer Identification Program requirements under Section 326 of the
Money Laundering Abatement Act.

 

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(k)          COOPERATION.
Upon the expiration or earlier termination of this Agreement, the Dealer Manager will use reasonable efforts to cooperate fully
with the Trust and any other party that may be necessary to accomplish an orderly transfer and transfer to a successor dealer manager
of the operation and management of the services the Dealer Manager is providing to the Trust under this Agreement. The Dealer Manager
will not be entitled to receive any additional fee in connection with the foregoing provisions of this Section 6(k), but
the Trust will pay or reimburse the Dealer Manager for any out-of-pocket expenses reasonably incurred by the Dealer Manager in
connection therewith.

 

(l)           CUSTOMER
INFORMATION. The Dealer Manager will use commercially reasonable efforts to provide the Trust with any and all subscriber information
that the Trust requests in order for the Trust to comply with the requirements under Section 5(l) above.

 

(m)         TRANSMITTAL
OF FUNDS. Until a minimum of $2,000,000 of subscription funds has been sold, the Dealer Manager shall instruct the Soliciting Dealers
to forward all subscription funds together with an original Subscription Agreement, executed and initialed by the subscriber as
provided for in the Subscription Agreement, to the Escrow Agent at the address provided in the Subscription Agreement.

 

When the Soliciting Dealer’s
internal supervisory procedures are conducted at the site at which the Subscription Agreement and subscription funds were initially
received by the Soliciting Dealer from the subscriber, the Dealer Manager shall instruct the Soliciting Dealers to transmit the
Subscription Agreement and subscription funds to the Escrow Agent by the end of the next business day following receipt of the
subscription funds and the Subscription Agreement. When, pursuant to the Soliciting Dealer’s internal supervisory procedures,
the final internal supervisory procedures are conducted at a different location (the “Final Review Office”),
the Dealer Manager shall instruct the Soliciting Dealers to transmit the subscription funds and Subscription Agreement to the Final
Review Office by the end of the next business day following the receipt of the Subscription Agreement and subscription funds; the
Final Review Office will be instructed to forward both the Subscription Agreement and subscription funds to the Escrow Agent by
the end of the next business day following the Final Review Office’s receipt of the Subscription Agreement and subscription
funds.

 

Once a minimum of $2,000,000
of subscription funds has been sold, subject to any continuing escrow obligations imposed by certain states as described in the
Prospectus, the Dealer Manager shall instruct the Soliciting Dealers to forward subscription funds together with an original Subscription
Agreement, executed and initialed by the subscriber as provided for in the Subscription Agreement, to the Deposit Account.

 

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7.           EXPENSES.

 

(a)          Subject
to Section 7(b)(iii), the Dealer Manager shall pay all of its own costs and expenses incident to the performance of its
obligations under this Agreement.

 

(b)          The
Trust agrees to pay all costs and expenses related to:

 

(i)          the
Commission’s registration of the offer and sale of the Shares with the Commission;

 

(ii)         expenses
of printing the Registration Statement and the Prospectus and any amendment or supplement thereto as herein provided;

 

(iii)        the
reimbursement of the Dealer Manager and Soliciting Dealers for approved or deemed approved reasonable bona fide due diligence expenses
in accordance with Section 3(e);

 

(iv)        fees
and expenses incurred in connection with any required filing with FINRA;

 

(v)         all
the expenses of agents of the Trust, excluding the Dealer Manager, incurred in connection with performing marketing and advertising
services for the Trust; and

 

(vi)        expenses
of qualifying the Shares for offering and sale under state blue sky and securities laws, and expenses in connection with the preparation
and printing of the Blue Sky Survey.

 

8.           INDEMNIFICATION.

 

(a)          Indemnified
Parties Defined. For the purposes of this Agreement, an “Indemnified Party” shall mean a person
or entity entitled to indemnification under Section 8, as well as such person’s or entity’s officers, directors,
employees, members, partners, affiliates, agents and representatives, and each person, if any, who controls such person or entity
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act.

 

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(b)          Indemnification
of the Dealer Manager and Soliciting Dealers. The Trust will indemnify, defend and hold harmless the Dealer Manager and
the Soliciting Dealers, and their respective Indemnified Parties, from and against any losses, claims, expenses (including reasonable
legal and other expenses incurred in investigating and defending such claims or liabilities), damages or liabilities, joint or
several, to which any such Soliciting Dealers or the Dealer Manager, or their respective Indemnified Parties, may become subject
under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, expenses, damages or liabilities (or actions
in respect thereof) arise out of or are based upon: (i) in whole or in part, any material inaccuracy in a representation or warranty
contained herein by the Trust, any material breach of a covenant contained herein by the Trust, or any material failure by the
Trust to perform, its obligations hereunder or to comply with state or federal securities laws applicable to the Offering; (ii)
any untrue statement or alleged untrue statement of a material fact contained (A) in any Registration Statement or any post-effective
amendment thereto or in the Prospectus or any amendment or supplement to the Prospectus, (B) in any Approved Material or (C) in
any blue sky application or other document executed by the Trust or on its behalf specifically for the purpose of qualifying any
or all of the Offered Shares for sale under the securities laws of any jurisdiction or based upon written information furnished
by the Trust under the securities laws thereof (any such application, document or information being hereinafter called a “Blue
Sky Application”); or (iii) the omission or alleged omission to state a material fact required to be stated in the
Registration Statement or any post-effective amendment thereof to make the statements therein not misleading or the omission or
alleged omission to state a material fact required to be stated in the Prospectus or any amendment or supplement to the prospectus
to make the statements therein, in light of the circumstances under which they were made, not misleading, and the Trust will reimburse
each Soliciting Dealer or the Dealer Manager, and their respective Indemnified Parties, for any reasonable legal or other expenses
incurred by such Soliciting Dealer or the Dealer Manager, and their respective Indemnified Parties, in connection with investigating
or defending such loss, claim, expense, damage, liability or action; provided, however, that the Trust will not be liable
in any such case to the extent that any such loss, claim, expense, damage or liability arises out of, or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information
furnished to the Trust by the Dealer Manager expressly for use in the Registration Statement or any post-effective amendment thereof
or the Prospectus or any such amendment thereof or supplement thereto. This indemnity agreement will be in addition to any liability
which the Trust may otherwise have.

 

Notwithstanding
the foregoing, the indemnification and agreement to hold harmless provided in this Section 8(b) is further limited to the
extent that no such indemnification by the Trust of a Soliciting Dealer or the Dealer Manager, or their respective Indemnified
Parties, shall be permitted under this Agreement for, or arising out of, an alleged violation of federal or state securities laws,
unless one or more of the following conditions are met: (a) there has been a successful adjudication on the merits of each count
involving alleged securities law violations as to the particular Indemnified Party; (b) such claims have been dismissed with prejudice
on the merits by a court of competent jurisdiction as to the particular Indemnified Party; or (c) a court of competent jurisdiction
approves a settlement of the claims against the particular Indemnified Party and finds that indemnification of the settlement and
the related costs should be made, and the court considering the request for indemnification has been advised of the position of
the Commission and of the published position of any state securities regulatory authority in which the securities were offered
or sold as to indemnification for violations of securities laws.

 

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(c)          Dealer
Manager Indemnification of the Trust. The Dealer Manager will indemnify, defend and hold harmless the Trust, each of its
Indemnified Parties and each person who has signed the Registration Statement, from and against any losses, claims, expenses (including
the reasonable legal and other expenses incurred in investigating and defending any such claims or liabilities), damages or liabilities
to which any of the aforesaid parties may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such
losses, claims, expenses, damages (or actions in respect thereof) arise out of or are based upon: (i) in whole or in part, any
material inaccuracy in a representation or warranty contained herein by the Dealer Manager or any material breach of a covenant
contained herein by the Dealer Manager; (ii) any untrue statement or any alleged untrue statement of a material fact contained
(A) in any Registration Statement or any post-effective amendment thereto or in the Prospectus or any amendment or supplement to
the Prospectus, (B) in any Approved Material, or (C) any Blue Sky Application; or (iii) the omission or alleged omission to state
a material fact required to be stated in the Registration Statement or any post-effective amendment thereof to make the statements
therein not misleading, or the omission or alleged omission to state a material fact required to be stated in the Prospectus or
any amendment or supplement to the Prospectus to make the statements therein, in light of the circumstances under which they were
made, not misleading; provided, however, that in each case described in clauses (ii) and (iii) to the extent, but only to
the extent, that such untrue statement or omission was made in reliance upon and in conformity with written information furnished
to the Trust by the Dealer Manager expressly for use in the Registration Statement or any such post-effective amendments thereof
or the Prospectus or any such amendment thereof or supplement thereto; (iv) any use of sales literature, including “broker-dealer
use only” materials, by the Dealer Manager that is not Approved Material; or (v) any untrue statement made by the Dealer
Manager or omission by the Dealer Manager to state a fact necessary in order to make the statements made, in light of the circumstances
under which they were made, not misleading in connection with the Offering, in each case, other than statements or omissions made
in conformity with the Registration Statement, the Prospectus, any Approved Material or any other materials or information furnished
by or on behalf on the Trust. The Dealer Manager will reimburse the aforesaid parties for any reasonable legal or other expenses
incurred in connection with investigation or defense of such loss, claim, expense, damage, liability or action. This indemnity
agreement will be in addition to any liability which the Dealer Manager may otherwise have.

 

(d)          Soliciting
Dealer Indemnification of the Trust. By virtue of entering into the Soliciting Dealer Agreement, each Soliciting Dealer
severally will agree to indemnify, defend and hold harmless the Trust, the Dealer Manager, each of their respective Indemnified
Parties, and each person who signs the Registration Statement, from and against any losses, claims, expenses, damages or liabilities
to which the Trust, the Dealer Manager, or any of their respective Indemnified Parties, or any person who signed the Registration
Statement, may become subject, under the Securities Act or otherwise, as more fully described in the Soliciting Dealer Agreement.

 

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(e)         Action
Against Parties; Notification. Promptly after receipt by any Indemnified Party under this Section 8 of notice of
the commencement of any action, such Indemnified Party will, if a claim in respect thereof is to be made against any indemnifying
party under this Section 8, promptly notify the indemnifying party of the commencement thereof; provided, however,
that the failure to give such notice shall not relieve the indemnifying party of its obligations hereunder except to the extent
it shall have been actually prejudiced by such failure. In case any such action is brought against any Indemnified Party, and it
notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled, to the extent it may wish,
jointly with any other indemnifying party similarly notified, to participate in the defense thereof, with separate counsel. Such
participation shall not relieve such indemnifying party of the obligation to reimburse the Indemnified Party for reasonable legal
and other expenses incurred by such Indemnified Party in defending itself, except for such expenses incurred after the indemnifying
party has deposited funds sufficient to effect the settlement, with prejudice, of, and unconditional release of all liabilities
from, the claim in respect of which indemnity is sought. Any such indemnifying party shall not be liable to any such Indemnified
Party on account of any settlement of any claim or action effected without the consent of such indemnifying party, such consent
not to be unreasonably withheld or delayed.

 

(f)          Reimbursement
of Fees and Expenses. An indemnifying party under Section 8 of this Agreement shall be obligated to reimburse an
Indemnified Party for reasonable legal and other expenses as follows:

 

(i)          In
the case of the Trust indemnifying the Dealer Manager, the advancement of Trust funds to the Dealer Manager for legal expenses
and other costs incurred as a result of any legal action for which indemnification is being sought shall be permissible only if
all of the following conditions are satisfied: (A) the legal action relates to acts or omissions with respect to the performance
of duties or services on behalf of the Trust; (B) the legal action is initiated by a third party who is not a shareholder of the
Trust or the legal action is initiated by a shareholder of the Trust acting in his or her capacity as such and a court of competent
jurisdiction specifically approves such advancement; and (C) the Dealer Manager undertakes to repay the advanced funds to the Trust,
together with the applicable legal rate of interest thereon, in cases in which the Dealer Manager is found not to be entitled to
indemnification.

 

(ii)         In
any case of indemnification other than that described in Section 8(f)(i) above, the indemnifying party shall pay all legal
fees and expenses reasonably incurred by the Indemnified Party in the defense of such claims or actions; provided, however,
that the indemnifying party shall not be obligated to pay legal expenses and fees to more than one law firm in connection with
the defense of similar claims arising out of the same alleged acts or omissions giving rise to such claims notwithstanding that
such actions or claims are alleged or brought by one or more parties against more than one Indemnified Party. If such claims or
actions are alleged or brought against more than one Indemnified Party, then the indemnifying party shall only be obligated to
reimburse the expenses and fees of the one law firm (in addition to local counsel) that has been participating by a majority of
the indemnified parties against which such action is finally brought; and if a majority of such indemnified parties is unable to
agree on which law firm for which expenses or fees will be reimbursable by the indemnifying party, then payment shall be made to
the first law firm of record representing an Indemnified Party against the action or claim. Such law firm shall be paid only to
the extent of services performed by such law firm and no reimbursement shall be payable to such law firm on account of legal services
performed by another law firm.

 

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9.           Contribution.

 

(a)          If
the indemnification provided for in Section 8 is for any reason unavailable to or insufficient to hold harmless an Indemnified
Party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall
contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such Indemnified Party,
as incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Trust, the Dealer Manager
and the Soliciting Dealer, respectively, from the proceeds received in Primary Offering pursuant to this Agreement and the relevant
Soliciting Dealer Agreement, or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the
Trust, the Dealer Manager and the Soliciting Dealer, respectively, in connection with the statements or omissions which resulted
in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations.

 

(b)          The
relative benefits received by the Trust, the Dealer Manager and the Soliciting Dealer, respectively, in connection with the proceeds
received in the Primary Offering pursuant to this Agreement and the relevant Soliciting Dealer Agreement shall be deemed to be
in the same respective proportion as the total net proceeds from the Primary Offering pursuant to this Agreement and the relevant
Soliciting Dealer Agreement (before deducting expenses), received by the Trust, and the total selling commissions and dealer manager
fees received by the Dealer Manager (adjusted for fees reallowed) and the Soliciting Dealer, respectively, in each case as set
forth on the cover of the Prospectus bear to the aggregate offering price of the Shares sold in the Primary Offering as set forth
on such cover.

 

(c)          The
relative fault of the Trust, the Dealer Manager and the Soliciting Dealer, respectively, shall be determined by reference to, among
other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact related to information supplied by the Trust, by the Dealer Manager or by the Soliciting Dealer, respectively, and
the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

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(d)          The
Trust, the Dealer Manager and the Soliciting Dealer (by virtue of entering into the Soliciting Dealer Agreement) agree that it
would not be just and equitable if contribution pursuant to this Section 9 were determined by pro rata allocation
or by any other method of allocation which does not take account of the equitable contributions referred to above in this Section
9. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an Indemnified Party and referred
to above in this Section 9 shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified
Party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency
or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission or alleged omission.

 

(e)          Notwithstanding
the provisions of this Section 9, the Dealer Manager and the Soliciting Dealer shall not be required to contribute any amount
by which the total price at which the Shares sold in the Primary Offering to the public by them exceeds the amount of any damages
which the Dealer Manager and the Soliciting Dealer have otherwise been required to pay by reason of any untrue or alleged untrue
statement or omission or alleged omission.

 

(f)          No
party guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
from any party who was not guilty of such fraudulent misrepresentation.

 

(g)          For
the purposes of this Section 9, the Dealer Manager’s officers, directors, employees, members, partners, agents and
representatives, and each person, if any, who controls the Dealer Manager within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act shall have the same rights to contribution of the Dealer Manager, and each officers, directors,
employees, members, partners, agents and representatives of the Trust, each officer of the Trust who signed the Registration Statement
and each person, if any, who controls the Trust, within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act shall have the same rights to contribution of the Trust. The Soliciting Dealers’ respective obligations to contribute
pursuant to this Section 9 are several in proportion to the number of Shares sold by each Soliciting Dealer in the Primary
Offering and not joint.

 

10.         TERMINATION
OF THIS AGREEMENT.

 

(a)          TERM;
EXPIRATION. This Agreement shall become effective on the initial Effective Date. Unless sooner terminated pursuant to this Section
10(a), this Agreement shall expire at the end of the Offering Period; provided, however, that if the Offering
Period does not commence by December 31, 2014, then this Agreement shall expire automatically at 11:59 p.m. Eastern time, on December
31, 2014 without further action by the parties. This Agreement (i) may be earlier terminated by the Trust pursuant to Section
10(b), and (ii) may be earlier terminated by the Dealer Manager pursuant to Section 10(c). The date upon which this
Agreement shall have so expired or been terminated earlier shall be referred to as the “Termination Date”.

 

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(b)         Termination
by the Trust. Beginning six months following the initial Effective Date, this Agreement may be terminated at the sole option
of the Trust, upon at least sixty (60) days’ written notice to the Dealer Manager. The Trust also has the option to terminate
this Agreement immediately, subject to the thirty (30)-day cure period for a “for Cause” termination due to a material
breach of this Agreement (during which period all the Dealer Manager’s obligations to perform under this Agreement shall
be suspended), upon written notice of termination from the Board of Directors of the Trust to the Dealer Manager if any of the
following events occur:

 

(i)          For
Cause (as defined below);

 

(ii)         A
court of competent jurisdiction enters a decree or order for relief in respect of the Dealer Manager in any involuntary case under
the applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appoints a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or similar official) of the Dealer Manager or for any substantial part of its property or orders
the winding up or liquidation of the Dealer Manager’s affairs;

 

(iii)        The
Dealer Manager commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or consents to the entry of an order for relief in an involuntary case under any such law, or consents to the appointment
of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Dealer
Manager or for any substantial part of its property, or makes any general assignment for the benefit of creditors, or fails generally
to pay its debts as they become due;

 

As used above, “Cause”
shall mean fraud, criminal conduct, willful misconduct or willful or grossly negligent breach of the Dealer Manager’s obligations
under this Agreement which materially adversely affects the Dealer Manager’s ability to perform its duties; or a material
breach of this Agreement by the Dealer Manager which materially affects adversely affects the Dealer Manager’s ability to
perform its duties, provided that (A) Dealer Manager does not cure any such material breach within thirty (30) days of receiving
notice of such material breach from the Trust, or (B) if such material breach is not of a nature that can be remedied within such
period, the Dealer Manager does not diligently take all reasonable steps to cure such breach or does not cure such breach within
a reasonable time period.

 

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(c)          Termination
by Dealer Manager. Beginning six months following the initial Effective Date, this Agreement may be terminated at the sole
option of the Dealer Manager, upon at least six (6) months’ written notice to the Trust. The Dealer Manager also has the
option to terminate this Agreement immediately, subject to the thirty (30)-day cure period for a “for Good Reason”
termination due to a material breach of this Agreement, upon written notice of termination from the Dealer Manager to the Trust
if any of the following events occur:

 

(i)          For
Good Reason (as defined below);

 

(ii)         A
court of competent jurisdiction enters a decree or order for relief in respect of the Trust or any of its subsidiaries in any involuntary
case under the applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appoints a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of the Trust or any of its subsidiaries or for any substantial
part of its property or orders the winding up or liquidation of the Trust’s or any of its subsidiaries’ affairs;

 

(iii)        The
Trust or any of its subsidiaries commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now
or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such law, or consents
to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official)
of the Trust or any of its subsidiaries or for any substantial part of their property, or makes any general assignment for the
benefit of creditors, or fails generally to pay its debts as they become due;

 

(iv)        There
shall have been a material change in the nature of the business conducted or contemplated to be conducted as set forth in the Registration
Statement at the initial Effective Date by the Trust and its subsidiaries, considered as one entity;

 

(v)         There
shall have occurred a Trust MAE, whether or not arising in the ordinary course of business;

 

(vi)        A
stop order suspending the effectiveness of the Registration Statement shall have been issued by the Commission and is not rescinded
within 10 business days after the issuance thereof; or

 

(vii)       A
material action, suit, proceeding or investigation of the type referred to in Section 1(g) shall have occurred or arisen
on or after the initial Effective Date.

 

As used above, “Good
Reason” shall mean fraud, criminal conduct, willful misconduct or willful or grossly negligent breach of the Trust’s
obligations under this Agreement, or a material breach of this Agreement by the Trust, provided that (i) the Trust does not cure
any such material breach within thirty (30) days of receiving notice of such material breach from the Dealer Manager, or (ii) if
such material breach is not of a nature that can be remedied within such period, the Trust does not diligently take all reasonable
steps to cure such breach or does not cure such breach within a reasonable time period.

 

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(d)          DELIVERY
OF RECORDS Upon Expiration or Early Termination. Upon the expiration or early termination of this Agreement for any reason,
the Dealer Manager shall (i) promptly forward any and all funds, if any, in its possession which were received from investors for
the sale of Shares into the Escrow Account for the deposit of investor funds, (ii) to the extent not previously provided to the
Trust a list of all investors who have subscribed for or purchased shares and all broker-dealers with whom the Dealer Manager has
entered into a Soliciting Dealer Agreement, (iii) notify Soliciting Dealers of such termination, and (iv) promptly
deliver to the Trust copies of any sales literature designed for use specifically for the Offering that it is then in the process
of preparing. Upon expiration or earlier termination of this Agreement, the Trust shall pay to the Dealer Manager all compensation
to which the Dealer Manager is or becomes entitled under Section 3(d) at such time as such compensation becomes payable.

 

11.         MISCELLANEOUS.

 

(a)          SURVIVAL.
The following provisions of the Agreement shall survive the expiration or earlier termination of this Agreement: Section 3(d);
Section 3(e); Section 5(l); Section 5(n); Section 6(j); Section 6(k); Section 7; Section
8; Section 9; Section 10(d); and Section 11. Notwithstanding anything else that may be to the contrary
herein, the expiration or earlier termination of this Agreement shall not relieve a party for liability for any breach occurring
prior to such expiration or earlier termination.

 

(b)          NOTICES.
All notices or other communications required or permitted hereunder, except as herein otherwise specifically provided, shall be
in writing and shall be deemed given or delivered: (i) when delivered personally or by commercial messenger; (ii) one business
day following deposit with a recognized overnight courier service, provided such deposit occurs prior to the deadline imposed by
such service for overnight delivery; (iii) when transmitted, if sent by facsimile copy, provided confirmation of receipt is received
by sender and such notice is sent by an additional method provided hereunder; in each case above provided such communication is
addressed to the intended recipient

thereof as set forth below:

 

	   If to the Trust:	United Development Funding Income Fund V
	 	1301 Municipal Way, Suite 100
	 	Grapevine, TX  76051
	 	Facsimile No.:    (817) 835-0383
	 	Attention:  Hollis M. Greenlaw

 

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	 	with a copy to:
	 	 
	 	Morris, Manning & Martin, LLP
	 	3343 Peachtree Road, NE, Suite 1600
	 	Atlanta, GA 30326
	 	Facsimile No.:  (404) 365-9532
	 	Attention:  Lauren B. Prevost, Esq.

 

	If to the Dealer Manager:	Realty Capital Securities, LLC
	 	One Beacon Street, 14th Floor
	 	Boston, MA 02108
	 	Facsimile No.:    (857) 207-3397
	 	Attention:     Louisa Quarto
	 	   President
	 	 
	 	with copies to:
	 	 
	 	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, NY  10036
	 	Facsimile No:      (212) 969-2900
	 	Attention:  Peter M. Fass, Esq.
	 	 
	 	Proskauer Rose LLP
	 	Three First National Plaza
	 	70 West Madison
	 	Suite 3800
	 	Chicago, Illinois 60602-4342
	 	Attention:  Michael J. Choate, Esq.

 

Any party may change its address
specified above by giving each party notice of such change in accordance with this Section 11(b).

 

(c)          Successors
and Assigns. No party shall assign (voluntarily, by operation of law or otherwise) this Agreement or any right, interest
or benefit under this Agreement without the prior written consent of each other party. Subject to the foregoing, this Agreement
shall be fully binding upon, inure to the benefit of, and be enforceable by, the parties hereto and their respective successors
and assigns.

 

(d)          INVALID
PROVISION. The invalidity or unenforceability of any provision of this Agreement shall not affect the other provisions hereof,
and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted.

 

    	30

    	 

    

 

(f)          APPLICABLE
LAW. This Agreement and any disputes relative to the interpretation or enforcement hereto shall be governed by and construed under
the internal laws, as opposed to the conflicts of laws provisions, of the State of New York.

 

(g)          WAIVER.
EACH OF THE PARTIES HERETO WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON
CONTRACT, TORT OR OTHERWISE) RELATED TO OR ARISING OUT OF THIS AGREEMENT. The parties hereto each hereby irrevocably submits to
the exclusive jurisdiction of the courts of the State of New York and the Federal courts of the United States of America located
in the Borough of Manhattan, New York City, in respect of the interpretation and enforcement of the terms of this Agreement, and
in respect of the transactions contemplated hereby, and each hereby waives, and agrees not to assert, as a defense in any action,
suit or proceeding for the interpretation or enforcement hereof, that it is not subject thereto or that such action, suit or proceeding
may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement
may not be enforced in or by such courts, and the parties hereto each hereby irrevocably agrees that all claims with respect to
such action or proceeding shall be heard and determined in such a New York State or Federal court.

 

(h)          ATTORNEYS’
FEES. If a dispute arises concerning the performance, meaning or interpretation of any provision of this Agreement or any document
executed in connection with this Agreement, then the prevailing party in such dispute shall be awarded any and all costs and expenses
incurred by the prevailing party in enforcing, defending or establishing its rights hereunder or thereunder, including, without
limitation, court costs and attorneys and expert witness fees. In addition to the foregoing award of costs and fees, the prevailing
also shall be entitled to recover its attorneys’ fees incurred in any post-judgment proceedings to collect or enforce any
judgment.

 

(i)          No
Partnership. Nothing in this Agreement shall be construed or interpreted to constitute the Dealer Manager or the Soliciting
Brokers as being in association with or in partnership with the Trust or one another, and instead, this Agreement only shall constitute
the Soliciting Dealer as a broker authorized by the Trust to sell and to manage the sale by others of the Shares according to the
terms set forth in the Registration Statement, the Prospectus or this Agreement. Nothing herein contained shall render the Dealer
Manager or the Trust liable for the obligations of any of the Soliciting Brokers or one another.

 

(j)          Third
Party Beneficiaries. Except for the persons and entities referred to in Section 8 and Section 9, there shall
be no third party beneficiaries of this Agreement, and no provision of this Agreement is intended to be for the benefit of any
person or entity not a party to this Agreement, and no third party shall be deemed to be a beneficiary of any provision of this
Agreement. Except for the persons and entities referred to in Section 8 and Section 9, no third party shall by virtue
of any provision of this Agreement have a right of action or an enforceable remedy against any party to this Agreement. Each of
the persons and entities referred to in Section 8 and Section 9 shall be a third party beneficiary of this Agreement.

 

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(k)          Entire
Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject
matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or
implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control
and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may
not be modified or amended other than by an agreement in writing.

 

(l)          Nonwaiver.
The failure of any party to insist upon or enforce strict performance by any other party of any provision of this Agreement or
to exercise any right under this Agreement shall not be construed as a waiver or relinquishment to any extent of such party’s
right to assert or rely upon any such provision or right in that or any other instance; rather, such provision or right shall be
and remain in full force and effect.

 

(m)          Access
to Information. The Trust may authorize the Trust’s transfer agent to provide information to the Dealer Manager and
each Soliciting Dealer regarding recordholder information about the clients of such Soliciting Dealer who have invested with the
Trust on an on-going basis for so long as such Soliciting Dealer has a relationship with such clients. The Dealer Manager shall
require in the Soliciting Dealer Agreement that Soliciting Dealers not disclose any password for a restricted website or portion
of website provided to such Soliciting Dealer in connection with the Offering and not disclose to any person, other than an officer,
director, employee or agent of such Soliciting Dealers, any material downloaded from such a restricted website or portion of a
restricted website.

 

(n)          Counterparts.
This Agreement may be executed (including by facsimile transmission) with counterpart signature pages or in counterpart copies,
each of which shall be deemed an original but all of which together shall constitute one and the same instrument comprising this
Agreement.

 

(o)          ABSENCE
OF FIDUCIARY RELATIONSHIPS. The parties acknowledge and agree that (i) the Dealer Manager’s responsibility to the Trust is
solely contractual in nature, and (ii) the Dealer Manager does not owe the Trust, any of its affiliates or any other person or
entity any fiduciary (or other similar) duty as a result of this Agreement or any of the transactions contemplated hereby.

 

(p)          DEALER
MANAGER INFORMATION. Prior to the initial Effective Date, the parties will expressly acknowledge and agree as to the information
furnished to the Trust by the Dealer Manager expressly for use in the Registration Statement.

 

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(q)          PROMOTION
OF DEALER MANAGER RELATIONSHIP. The Trust and the Dealer Manager will cooperate with each other in good faith in connection with
the promotion or advertisement of their relationship in any release, communication, sales literature or other such materials and
shall not promote or advertise their relationship without the approval of the other party in advance, which shall not be unreasonably
withheld or delayed.

 

If the foregoing is
in accordance with your understanding of our agreement, kindly sign and return it to us, whereupon this instrument will become
a binding agreement between you and the Trust in accordance with its terms.

 

[Signatures on following page]

 

    	33

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have each duly executed this Exclusive Dealer Manager Agreement as of the day and year set forth above.

 

	 	United Development Funding INCOME FUND V

 

	 	By:	/s/ Hollis M. Greenlaw	 
	 	 	Hollis M. Greenlaw
	 	 	Chairman and Chief Executive Officer

 

Accepted as of the date first above written:

 

Realty
Capital Securities, LLC

 

	By:	/s/ Edward M. Weil, Jr.	 
	 	Edward M. Weil, Jr.
	 	President and Chief Operating Officer

 

    	 

    	 

    

 

Exhibit A

to the 

Dealer Manager Agreement

 

UNITED DEVELOPMENT FUNDING INCOME FUND
V

FORM OF SOLICITING DEALER AGREEMENT

 

Ladies and Gentlemen:

 

Realty Capital Securities,
LLC (the “Dealer Manager”) entered into an exclusive dealer manager agreement, dated as of July 25, 2014
(the “Dealer Manager Agreement”), with United Development Funding Income Fund V, a Maryland real estate
investment trust (the “Trust”), under which the Dealer Manager agreed to use its reasonable best efforts
to solicit subscriptions in connection with the public offering (the “Offering”) for the Trust’s
common shares of beneficial interest, $0.01 par value per share, of which amount: (i) up to 37,500,000 shares are to be offered
in the Primary Offering for a purchase price of $20.00 per share (the “Primary Shares”), and (ii) up
to 12,500,000 shares to be offered pursuant to the DRP for a purchase price of $20.00 per share (the “DRP Shares”
and, together with the Primary Shares, the (“Shares”) commencing on the Effective Date (as defined below).
Notwithstanding the foregoing, the Trust has reserved the right to reallocate the Shares between Primary Shares and the DRP Shares.
Unless otherwise defined herein, capitalized terms used herein shall have the respective meanings therefor as in the Dealer Manager
Agreement.

 

In connection with
the performance of the Dealer Manager’s obligations under Section 3 of the Dealer Manager Agreement, the Dealer Manager is
authorized to retain the services of securities dealers (the “Soliciting Dealers”) who are members of
the Financial Industry Regulatory Authority (“FINRA”) to solicit subscriptions for Shares in connection
with the Offering. You are hereby invited to become a Soliciting Dealer and, as such, to use your reasonable best efforts to solicit
subscribers for Shares, in accordance with the following terms and conditions of this soliciting dealer agreement (this “Agreement”):

 

		1.	Registration Statement.

 

(a)          A
registration statement on Form S-11 (File No. 333-194162), including a preliminary prospectus, has been prepared by the Trust and
was filed with the Securities and Exchange Commission (the “Commission”) on February 26, 2014, in accordance
with the applicable requirements of the Securities Act of 1933, as amended (the “Securities Act”), and
the applicable rules and regulations of the Commission promulgated thereunder (the “Securities Act Rules and Regulations”)
for the registration of the Offering. The Trust has prepared and filed such amendments thereto and such amended prospectus as may
have been required to the date hereof, and will file such additional amendments and supplements thereto as may hereafter be required.
The registration statement on Form S-11 and the prospectus contained therein, as finally amended at the date the registration statement
is declared effective by the Commission (the “Effective Date”) are respectively hereinafter referred
to as the “Registration Statement” and the “Prospectus”, except that (i) if
the Trust files a post-effective amendment to such registration statement, then the term “Registration Statement” shall,
from and after the declaration of the effectiveness of such post-effective amendment by the Commission, refer to such registration
statement as amended by such post-effective amendment, and the term “Prospectus” shall refer to the amended prospectus
then on file with the Commission, and (ii) if the prospectus filed by the Trust pursuant to either Rule 424(b) or 424(c) of the
Securities Act Rules and Regulations shall differ from the prospectus on file at the time the Registration Statement or the most
recent post-effective amendment thereto, if any, shall have become effective, then the term “Prospectus” shall refer
to such prospectus filed pursuant to either Rule 424(b) or 424(c), as the case may be, from and after the date on which it shall
have been filed. As used herein, the terms “Registration Statement”, “preliminary Prospectus” and “Prospectus”
shall include the documents, if any, incorporated by reference therein. As used herein, the term “Effective Date” also
shall refer to the effective date of each post-effective amendment to the Registration Statement, unless the context otherwise
requires.

 

    	 

    	 

    

 

		2.	Compliance with Applicable Rules and Regulations;
License and Association Membership.

 

Upon the effectiveness
of this Agreement, the undersigned dealer will become one of the “Soliciting Dealers” referred to in the Dealer Manager
Agreement and is referred to herein as “Soliciting Dealer”). Soliciting Dealer agrees that solicitation
and other activities by it hereunder shall comply with, and shall be undertaken only in accordance with, the terms of the Dealer
Manager Agreement, the terms of this Agreement, the Securities Act, the Securities Act Rules and Regulations, the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) and the applicable rules and regulations promulgated thereunder
(the “Exchange Act Rules and Regulations”), the Blue Sky Survey (as defined below), the Rules of Fair
Practice of FINRA, the FINRA Conduct Rules (including, without limitation, Rules 2340, 2420, 2730, 2740, 2750 and 2810 of the FINRA
Conduct Rules), and the provisions of Article III.C. of the Statement of Policy Regarding Real Estate Investment Trusts of the
North American Securities Administrators Association, Inc., as revised and amended on May 7, 2007 and as may be further revised
and amended (the “NASAA Guidelines”).

 

Soliciting Dealer’s
acceptance of this Agreement constitutes a representation to the Trust and to the Dealer Manager that Soliciting Dealer is a properly
registered or licensed broker-dealer, duly authorized to sell Shares under federal and state securities laws and regulations in
all states where it offers or sells Shares, and that it is a member in good standing of FINRA. Soliciting Dealer represents and
warrants that it is currently licensed as a broker-dealer in the jurisdictions identified on Schedule 1 to this Agreement and that
its independent contractors and registered representatives have the appropriate licenses to offer and sell the Shares in such jurisdictions.
This Agreement shall automatically terminate with no further action by either party if Soliciting Dealer ceases to be a member
in good standing of FINRA or with the securities commission of the state in which Soliciting Dealer’s principal office is
located. Soliciting Dealer agrees to notify the Dealer Manager immediately if Soliciting Dealer ceases to be a member in good standing
of FINRA or with the securities commission of any state in which Soliciting Dealer is currently registered or licensed.

 

    	 

    	 

    

 

		3.	Limitation of Offer; Investor Suitability.

 

(a)          Soliciting
Dealer will offer Shares only (i) to persons that meet the financial qualifications set forth in the Prospectus or in any suitability
letter or memorandum sent to it by the Trust or the Dealer Manager, and (ii) in accordance with Section 8, to persons in
the jurisdictions in which it is advised in writing by the Trust or the Dealer Manager that the Shares are qualified for sale or
that qualification is not required (the “Blue Sky Survey”). Notwithstanding the qualification of Shares
for sale in any respective jurisdiction (or exemption therefrom), Soliciting Dealer will not offer Shares and will not permit any
of its registered representatives to offer Shares in any jurisdiction unless both Soliciting Dealer and such registered representative
are duly licensed to transact securities business in such jurisdiction. In offering Shares, Soliciting Dealer shall comply with
the provisions of the Rules of Fair Practice set forth in the FINRA Manual, as well as other applicable rules and regulations relating
to suitability of investors, including, but not limited to, the provisions of Section III.C. of the NASAA REIT Guidelines.

 

In offering the sale
of Shares to any person, Soliciting Dealer will have reasonable grounds to believe (based on such information obtained from the
investor concerning the investor’s age, investment objectives, investment experience, other investments, income, net worth,
financial situation, needs or any other information known by Soliciting Dealer after due inquiry) that: (A) such person is in a
financial position appropriate to enable such person to realize to a significant extent the benefits described in the Prospectus,
including the tax benefits where they are a significant aspect of the Trust; (B) the investor has a fair market net worth sufficient
to sustain the risks inherent in the program, including loss of investment and lack of liquidity; (C) the investor has an apparent
understanding of the fundamental risks of the investment, the risk that the investor may lose the entire investment, the lack of
liquidity, the restrictions on transferability and the tax consequences of the investment; (D) the purchase of the Shares is otherwise
suitable for such person; and (E) such person has either: (1) a minimum annual gross income of $70,000 and a minimum net worth
(exclusive of home, home furnishings and automobiles) of $70,000; or (2) a minimum net worth (determined with the foregoing exclusions)
of $250,000 and meets the higher suitability standards, if applicable, imposed by the state in which the investor resides. Soliciting
Dealer further will use its best efforts to determine the suitability and appropriateness of an investment in the Shares of each
proposed investor solicited by a person associated with Soliciting Dealer by reviewing documents and records disclosing the basis
upon which the determination as to suitability was reached as to each proposed investor, whether such documents and records relate
to accounts which have been closed, accounts which are currently maintained or accounts hereinafter established. In making the
determinations as to financial qualifications and as to suitability required by the NASAA Guidelines, Soliciting Dealer may rely
on (x) representations from investment advisers who are not affiliated with Soliciting Dealer, banks acting as trustees or fiduciaries,
and (y) information it has obtained from a prospective investor, including such information as the investment objectives, other
investments, financial situation and needs of the person or any other information known by Soliciting Dealer after due inquiry.
Notwithstanding the foregoing, Soliciting Dealer shall not execute any transaction in the Trust in a discretionary account without
prior written approval of the transaction by the customer.

 

    	 

    	 

    

 

(b)          Soliciting
Dealer shall maintain, for at least six years or for a period of time not less than that required in order to comply with all applicable
federal, state and other regulatory requirements, whichever is later, a record of the information obtained to determine that an
investor meets the suitability standards imposed on the offer and sale of the Shares (both at the time of the initial subscription
and at the time of any additional subscriptions) and a representation of the investor that the investor is investing for the investor’s
own account or, in lieu of such representation, information indicating that the investor for whose account the investment was made
met the suitability standards. Soliciting Dealer may satisfy its obligation by contractually requiring such information to be maintained
by the investment advisers or banks discussed above. Soliciting Dealer further agrees to comply with the record keeping requirements
of the Exchange Act, including, but not limited to, Rules 17a-3 and 17a-4 promulgated under the Exchange Act. Soliciting Dealer
agrees to make such documents and records available to the Dealer Manager and the Trust upon request, and representatives of the
Commission, FINRA and applicable state securities administrators upon Soliciting Dealer’s receipt of an appropriate document
subpoena or other appropriate request for documents from any such agency.

 

		4.	Delivery of Prospectus and Approved Material.

 

(a)          Soliciting
Dealer will: (i) deliver a Prospectus, as then supplemented or amended, to each person who subscribes for Shares at least five
business days prior to the tender of such person’s subscription agreement (the “Subscription Agreement”);
(ii) promptly comply with the written request of any person for a copy of the Prospectus, as then supplemented or amended, during
the period between the initial Effective Date and the termination of the Offering; (iii) deliver to any person, in accordance with
applicable law or as prescribed by any state securities administrator, a copy of any prescribed document included within or incorporated
by reference in the Registration Statement and any supplements thereto during the course of the Offering; (iv) not use any sales
materials in connection with the solicitation of purchasers of the Shares except Approved Material; (v) to the extent the Trust
provides Approved Material, not use such materials unless accompanied or preceded by the Prospectus, as then currently in effect,
and as may be supplemented in the future; and (vi) not give or provide any information or make any representation or warranty other
than information or representations contained in the Prospectus or the Approved Material. Soliciting Dealer will not publish, circulate
or otherwise use any other advertisement or solicitation material in connection with the Offering without the Dealer Manager’s
express prior written approval.

 

(b)          Nothing
contained in this Agreement shall be deemed or construed to make Soliciting Dealer an employee, agent, representative or partner
of the Dealer Manager or the Trust, and Soliciting Dealer is not authorized to act for the Dealer Manager or the Trust.

 

(c)          Soliciting
Dealer will not send or provide supplements to the Prospectus or any Approved Material to any investor unless it has previously
sent or provided a Prospectus and all supplements thereto to that investor or has simultaneously sent or provided a Prospectus
and all supplements thereto with such Prospectus supplement or Approved Material.

 

    	 

    	 

    

 

(d)          Soliciting
Dealer will not show to or provide any investor or reproduce any material or writing which is supplied to it by the Dealer Manager
and marked “broker-dealer use only” or otherwise bearing a legend denoting that it is not to be used in connection
with the offer or sale of Shares to members of the public.

 

(e)          The
Dealer Manager will supply Soliciting Dealer with reasonable quantities of the Prospectus (including any supplements thereto),
as well as any Approved Material, for delivery to investors.

 

(f)          Soliciting
Dealer shall furnish a copy of any revised preliminary Prospectus to each person to whom it has furnished a copy of any previous
preliminary Prospectus, and further agrees that it will mail or otherwise deliver all preliminary and final Prospectuses required
for compliance with the provisions of Rule 15c2-8 under the Exchange Act.

 

		5.	Submission of Orders; Right to Reject Orders.

 

(a)          Subject
to certain individual state requirements as described in the Prospectus and except for shares issued pursuant to the DRP, Shares
may be sold only to investors who initially purchase a minimum of 125 Shares for $2,500 or a minimum of 50 shares for $1,000 if
the investor is purchasing through an IRA or other qualified account. With respect to Soliciting Dealer’s participation in
any resales or transfers of the Shares, Soliciting Dealer agrees to comply with any applicable requirements set forth in Section
2 and to fulfill the obligations pursuant to Rule 2810 of the FINRA Rules of Conduct.

 

(b)          Until
the minimum offering of $2,000,000 in Shares has been sold, payments for Shares shall be made by checks payable to “LegacyTexas
Bank, Escrow Agent for United Development Funding Income Fund V”. During such time, Soliciting Dealer shall forward original
checks together with an original Subscription Agreement, executed and initialed by the subscriber as provided for in the Subscription
Agreement, to LegacyTexas Bank (the “Escrow Agent”) at the address provided in the Subscription Agreement.

 

When Soliciting Dealer’s
internal supervisory procedures are conducted at the site at which the Subscription Agreement and check were initially received
by Soliciting Dealer from the subscriber, Soliciting Dealer shall transmit the Subscription Agreement and check to the Escrow Agent
by the end of the next business day following receipt of the check and Subscription Agreement. When, pursuant to Soliciting Dealer’s
internal supervisory procedures, Soliciting Dealer’s final internal supervisory procedures are conducted at a different location
(the “Final Review Office”), Soliciting Dealer shall transmit the check and Subscription Agreement to
the Final Review Office by the end of the next business day following Soliciting Dealer’s receipt of the Subscription Agreement
and check. The Final Review Office will, by the end of the next business day following its receipt of the Subscription Agreement
and check, forward both the Subscription Agreement and check to the Escrow Agent. If any Subscription Agreement solicited by Soliciting
Dealer is rejected by the Dealer Manager or the Trust, then the Subscription Agreement and check will be returned to the rejected
subscriber within 10 business days from the date of rejection.

 

    	 

    	 

    

 

Once the minimum offering
of $2,000,000 in Shares has been sold, subject to any continuing escrow obligations imposed by certain states as described in the
Prospectus, payments for Shares shall be made payable to “United Development Funding Income Fund V”. At such time,
Soliciting Dealer shall forward original checks together with an original Subscription Agreement, executed and initialed by the
subscriber as provided for in the Subscription Agreement, to United Development Funding Income Fund V, c/o DST Systems, Inc., at
the address provided in the Subscription Agreement.

 

Notwithstanding the
foregoing, in accordance with the applicable Exchange Act Rules and Regulations, if Soliciting Dealer has net capital of $250,000
or more it may instruct its customers to make their checks payable to Soliciting Dealer. In such case, Soliciting Dealer shall
issue a check made payable to the Escrow Agent or the Trust in accordance with the foregoing provisions of this Section 5(b),
as applicable.

 

(c)          All
orders, whether initial or additional, are subject to acceptance by and shall become effective upon confirmation by the Trust,
which reserves the right to reject any order in its sole discretion for any or no reason. Orders not accompanied by the required
instrument of payment for Shares may be rejected. Issuance and delivery of a Share will be made only after a sale of a Share is
deemed by the Trust to be completed in accordance with Section 3(c) of the Dealer Manager Agreement. If an order is rejected, cancelled
or rescinded for any reason, then Soliciting Dealer will return to the Dealer Manager any selling commissions or dealer manager
fees theretofore paid with respect to such order, and, if Soliciting Dealer fails to so return any such selling commissions, the
Dealer Manager shall have the right to offset amounts owned against future commissions or dealer manager fees due and otherwise
payable to Soliciting Dealer (it being understood and agreed that such right to offset shall not be in limitation of any other
rights or remedies that the Dealer Manager may have in connection with such failure).

 

		6.	Soliciting Dealer Compensation.

 

(a)          Subject
to the terms and conditions set forth herein and in the Dealer Manager Agreement and, subject to the volume discounts and other
special circumstances described in the “Plan of Distribution” section of the Prospectus, the Dealer Manager shall pay
to Soliciting Dealer a selling commission of 7% of the gross proceeds from the Shares sold by the Soliciting Dealer and accepted
and confirmed by the Trust. Alternatively, Soliciting Dealer may elect to receive a Selling Commission equal to 7.5% of gross proceeds
from the sale of Shares by Soliciting Dealer, with 2.5% thereof paid at the time of such sale and 1.0% thereof paid on each anniversary
of the closing of such sale up to and including the fifth anniversary of the closing of such sale. For purposes of this Section
6(a), Shares are “sold” only if an executed Subscription Agreement is accepted by the Trust and the Trust has thereafter
distributed the commission to the Dealer Manager in connection with such transaction.

 

(b)          Soliciting
Dealer acknowledges and agrees that no selling commissions will be paid for sales of DRP Shares.

 

    	 

    	 

    

 

(c)          Notwithstanding
the foregoing, it is understood and agreed that no commission shall be payable with respect to particular Shares if the Dealer
Manager or the Trust rejects a proposed subscriber’s Subscription Agreement. Accordingly, Soliciting Dealer shall have no
authority to issue a confirmation (pursuant to Exchange Act Rule 10b-10) to any subscriber; such authority residing solely in the
Dealer Manager, as the Dealer Manager and processing broker-dealer.

 

(d)          The
Dealer Manager may, in its sole discretion, re-allow a portion of the Dealer Manager Fee received by it to Soliciting Dealer. Subject
to the limitations described in or otherwise provided in the Prospectus, the Dealer Manager may, in its sole discretion, request
the Trust to reimburse Soliciting Dealer for reasonable accountable bona fide due diligence expenses incurred by Soliciting
Dealer, provided such expenses have actually been incurred, are supported by detailed and itemized invoices provided to the Trust
and the Trust had theretofore given its prior written approval of incurrence of such expenses.

 

(e)          Notwithstanding
anything herein to the contrary, Soliciting Dealer will not be entitled to receive any Dealer Manager Fee which would cause the
aggregate amount of selling commissions, dealer manager fees and other forms of underwriting compensation (as defined in accordance
with applicable FINRA rules) received by the Dealer Manager and all Soliciting Dealers to exceed 10% of the gross proceeds raised
from the sale of Shares in the Offering.

 

(f)          The
Trust will not be liable or responsible to any Soliciting Dealer for the payment of any selling commissions or any reallowance
of fees to Soliciting Dealer, it being the sole and exclusive responsibility of the Dealer Manager for the payment of selling commissions
or any reallowance to Soliciting Dealer. Soliciting Dealer acknowledges and agrees that the Dealer Manager’s liability for
commissions payable to Soliciting Dealer is limited solely to selling commissions and dealer manager fees received by the Dealer
Manager from the Trust in connection with Soliciting Dealer’s sale of Shares.

 

		7.	Reserved Shares.

 

The number of Shares,
if any, to be reserved for sale by each Soliciting Dealer may be decided by the mutual agreement, from time to time, of the Dealer
Manager and the Trust. The Dealer Manager reserves the right to notify Soliciting Dealer by United States mail or by other means
of the number of Shares reserved for sale by Soliciting Dealer, if any. Such Shares will be reserved for sale by Soliciting Dealer
until the time specified in the Dealer Manager’s notification to Soliciting Dealer. Sales of any reserved Shares after the
time specified in the notification to Soliciting Dealer or any requests for additional Shares will be subject to rejection in whole
or in part.

 

    	 

    	 

    

 

		8.	Blue Sky Qualification.

 

(a)          The
Dealer Manager will inform Soliciting Dealer as to the jurisdictions in which the Dealer Manager has been advised by the Trust
that the Shares have been qualified for sale or are exempt under the respective securities or “blue sky” laws of such
jurisdictions; but the Dealer Manager has not assumed and will not assume any obligation or responsibility as to Soliciting Dealer’s
right to act as a broker and/or dealer with respect to the Shares in any such jurisdiction. Soliciting Dealer agrees that Soliciting
Dealer will not make any offers or sell any Shares except in states in which the Dealer Manager may advise Soliciting Dealer that
the Offering has been qualified or is exempt and in which Soliciting Dealer is legally qualified to make offers and further agrees
to assure that each person to whom Soliciting Dealer sells Shares (at both the time of the initial purchase as well as at the time
of any subsequent purchases) meets any special suitability standards which apply to sales in a particular jurisdiction, as described
in the Blue Sky Survey and the Subscription Agreement. Neither the Dealer Manager nor the Trust assume any obligation or responsibility
in respect of the qualification of the Shares covered by the Prospectus under the laws of any jurisdiction or Soliciting Dealer’s
qualification to act as a broker and/or dealer with respect to the Shares in any jurisdiction. The Blue Sky Survey which has been
or will be furnished to Soliciting Dealer indicates the jurisdictions in which it is believed that the offer and sale of Shares
covered by the Prospectus is exempt from, or requires action under, the applicable blue sky or securities laws thereof, and what
action, if any, has been taken with respect thereto.

 

(b)          It
is understood and agreed that under no circumstances will Soliciting Dealer, as a Soliciting Dealer, engage in any activities hereunder
in any jurisdiction in which Soliciting Dealer may not lawfully so engage or in any activities in any jurisdiction with respect
to the Shares in which Soliciting Dealer may lawfully so engage unless Soliciting Dealer has complied with the provisions hereof.

 

		9.	Dealer Manager’s Authority.

 

Subject to the Dealer
Manager Agreement, the Dealer Manager shall have full authority to take such action as it may deem advisable with respect to all
matters pertaining to the Offering or arising thereunder. The Dealer Manager shall not be under any liability to Soliciting Dealer
(except for (a) its own lack of good faith, and (b) for obligations expressly assumed by us hereunder) for or in respect of the
validity or value of or title to, the Shares; the form of, or the statements contained in, or the validity of, the Registration
Statement, the Prospectus or any amendment or supplement thereto, or any other instrument executed by the Trust or by others; the
form or validity of the Dealer Manager Agreement or this Agreement; the delivery of the Shares; the performance by the Trust or
by others of any agreement on its or their part; the qualification of the Shares for sale under the laws of any jurisdiction; or
any matter in connection with any of the foregoing; provided, however, that nothing in this paragraph shall be deemed to relieve
the Trust or the Dealer Manager from any liability imposed by the Securities Act. No obligations or liability on the part of the
Trust or the Dealer Manager shall be implied or inferred herefrom.

 

		10.	Indemnification.

 

(a)          Under
the Dealer Manager Agreement, the Trust has agreed to indemnify Soliciting Dealer and the Dealer Manager and each person, if any,
who controls Soliciting Dealer or the Dealer Manager, in certain instances and against certain liabilities, including liabilities
under the Securities Act in certain circumstances. Soliciting Dealer hereby agrees to indemnify the Trust and each person who controls
it as provided in the Dealer Manager Agreement and to indemnify the Dealer Manager to the extent and in the manner that Soliciting
Dealer agrees to indemnify the Trust in the Dealer Manager Agreement.

 

    	 

    	 

    

 

(b)          In
furtherance of, and not in limitation of the foregoing, Soliciting Dealer will indemnify, defend and hold harmless the Dealer Manager
and the Trust, and their officers, directors, employees, members, partners, affiliates, agents and representatives, and each person,
if any, who controls such entity within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and
each person who has signed the Registration Statement (“Indemnified Parties”), from and against any losses,
claims, damages or liabilities to which any of the Indemnified Parties, and each person who signed the Registration Statement,
may become subject, under the Securities Act or the Exchange Act, or otherwise, insofar as such losses, claims and expenses (including
the reasonable legal and other expenses incurred in investigating and defending any such claims or liabilities), damages or liabilities
(or actions in respect thereof) arise out of or are based upon (i) in whole or in part, any material inaccuracy in the representations
or warranties contained in this Agreement or any material breach of a covenant contained herein by Soliciting Dealer, or (ii) any
untrue statement or any alleged untrue statement of a material fact contained (A) in any Registration Statement or any post-effective
amendment thereto or in the Prospectus or any amendment or supplement to the Prospectus, or (B) in any Approved Material, or (C)
any blue sky application or other document executed by the Trust or on its behalf specifically for the purpose of qualifying any
or all of the Shares for sale under the securities laws of any jurisdiction or based upon written information furnished by the
Trust under the securities laws thereof, or (iii) the omission or alleged omission to state a material fact required to be stated
in the Registration Statement or any post-effective amendment thereof to make the statements therein not misleading or the omission
or alleged omission to state a material fact required to be stated in the Prospectus or any amendment or supplement to the Prospectus
to make the statements therein, in light of the circumstances under which they were made, not misleading, provided, however,
that in each case described in clauses (ii) and (iii) to the extent, but only to the extent, that such untrue statement or omission
was made in reliance upon and in conformity with written information furnished to the Trust or the Dealer Manager by Soliciting
Dealer specifically for use with reference to Soliciting Dealer in the preparation of the Registration Statement or any such post-effective
amendments thereof or the Prospectus or any such amendment thereof or supplement thereto, (iv) any use of sales literature, including
“broker dealer use only” materials, by Soliciting Dealer that is not Approved Material, (v) any untrue statement made
by Soliciting Dealer or Soliciting Dealer’s representatives or agents or omission by Soliciting Dealer or Soliciting Dealer’s
representatives or agents to state a fact necessary in order to make the statements made, in light of the circumstances under which
they were made, not misleading in connection with the offer and sale of the Shares in each case, other than statements or omissions
made in conformity with the Registration Statement, Prospectus, Approved Material or any other materials or information furnished
by or on behalf of the Trust, or (vi) any failure by Soliciting Dealer to comply with applicable laws governing money laundry abatement
and anti-terrorist financing efforts in connection with the Offering, including applicable FINRA Rules, Exchange Act Rules and
Regulations and the USA PATRIOT Act. Soliciting Dealer will reimburse the aforesaid parties for any reasonable legal or other expenses
incurred in connection with investigation or defense of such loss, claim, damage, liability or action. This indemnity agreement
will be in addition to any liability which Soliciting Dealer may otherwise have.

 

    	 

    	 

    

 

(c)          Promptly
after receipt by any indemnified party under this Section 10 of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 10, promptly notify
the indemnifying party of the commencement thereof; provided, however, the failure to give such notice shall not relieve
the indemnifying party of its obligations hereunder except to the extent it shall have been prejudiced by such failure. In case
any such action is brought against any indemnified party, and it notifies an indemnifying party of the commencement thereof, the
indemnifying party will be entitled, to the extent it may wish, jointly with any other indemnifying party similarly notified, to
participate in the defense thereof, with separate counsel. Such participation shall not relieve such indemnifying party of the
obligation to reimburse the indemnified party for reasonable legal and other expenses incurred by such indemnified party in defending
itself, except for such expenses incurred after the indemnifying party has deposited funds sufficient to effect the settlement,
with prejudice, of, and unconditional release of all liabilities from, the claim in respect of which indemnity is sought. Any such
indemnifying party shall not be liable to any such indemnified party on account of any settlement of any claim or action effected
without the consent of such indemnifying party, such consent not to be unreasonably withheld or delayed.

 

(d)          An
indemnifying party under this Section 10 shall be obligated to reimburse an indemnified party for reasonable legal and other
expenses as follows: the indemnifying party shall pay all legal fees and expenses reasonably incurred by the indemnified party
in the defense of such claims or actions; provided, however, that the indemnifying party shall not be obligated to pay legal expenses
and fees to more than one law firm in connection with the defense of similar claims arising out of the same alleged acts or omissions
giving rise to such claims notwithstanding that such actions or claims are alleged or brought by one or more parties against more
than one indemnified party. If such claims or actions are alleged or brought against more than one indemnified party, then the
indemnifying party shall only be obligated to reimburse the expenses and fees of the one law firm (in addition to local counsel)
that has been participating by a majority of the indemnified parties against which such action is finally brought; and in the event
a majority of such indemnified parties is unable to agree on which law firm for which expenses or fees will be reimbursable by
the indemnifying party, then payment shall be made to the first law firm of record representing an indemnified party against the
action or claim. Such law firm shall be paid only to the extent of services performed by such law firm and no reimbursement shall
be payable to such law firm on account of legal services performed by another law firm.

 

		11.	Contribution.

 

If the indemnification
provided for in Section 10 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect
of any losses, liabilities, claims, damages or expenses referred to therein, the contributions provisions set forth in Section
9 of the Dealer Manager Agreement shall be applicable.

 

		12.	Trust as Party to Agreement.

 

The Trust shall be
a third party beneficiary of Soliciting Dealer’s representations, warranties, covenants and agreements contained in Sections
10 and 11. The Trust shall have all enforcement rights in law and in equity with respect to those portions of this Agreement
as to which it is third party beneficiary.

 

    	 

    	 

    

 

		13.	Privacy Laws; Compliance.

 

(a) Soliciting Dealer
agrees to: (i) abide by and comply with (A) the privacy standards and requirements of the Gramm-Leach-Bliley Act of 1999 (the “GLB
Act”); (B) the privacy standards and requirements of any other applicable federal or state law; and (C) Soliciting
Dealer’s own internal privacy policies and procedures, each as may be amended from time to time; (ii) refrain from the use
or disclosure of nonpublic personal information (as defined under the GLB Act) of all customers, except as necessary to service
the customers or as otherwise necessary or required by applicable law; and (iii) determine which customers have opted out of the
disclosure of nonpublic personal information by periodically reviewing and, if necessary, retrieving an aggregated list of such
customers (the “List”) as provided by each to identify customers that have exercised their opt-out rights.
If either party uses or discloses nonpublic personal information of any customer for purposes other than servicing the customer,
or as otherwise required by applicable law, that party will consult the List to determine whether the affected customer has exercised
his or her opt-out rights. Each party understands that it is prohibited from using or disclosing any nonpublic personal information
of any customer that is identified on the List as having opted out of such disclosures.

 

		14.	Anti-Money Laundering Compliance Programs.

 

Soliciting Dealer represents
to the Dealer Manager and to the Trust that it has established and implemented anti-money laundering compliance programs in accordance
with applicable law, including applicable FINRA Conduct Rules, rules and regulations promulgated under the Exchange Act and the
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT
Act) of 2001, as amended (the “USA PATRIOT Act”), specifically including, but not limited to, Section
352 of the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 (the “Money Laundering
Abatement Act,” and together with the USA PATRIOT Act, the “AML Rules”) reasonably expected
to detect and cause the reporting of suspicious transactions in connection with the offering and sale of the Shares. Soliciting
Dealer further represents that it currently is in compliance with all AML Rules, specifically including, but not limited to, the
Customer Identification Program requirements under Section 326 of the Money Laundering Abatement Act, and Soliciting Dealer hereby
covenants to remain in compliance with such requirements and shall, upon request by the Dealer Manager or the Trust, provide a
certification to the Dealer Manager or the Trust that, as of the date of such certification (a) its AML Program is consistent with
the AML Rules, and (b) it is currently in compliance with all AML Rules, specifically including, but not limited to, the Customer
Identification Program requirements under Section 326 of the Money Laundering Abatement Act. Upon request by the Dealer Manager
at any time, Soliciting Dealer will (i) furnish a written copy of its AML Program to the Dealer Manager for review, and (ii) furnish
a copy of the findings and any remedial actions taken in connection with its most recent independent testing of its AML Program.

 

    	 

    	 

    

 

		15.	Miscellaneous.

 

(a)          Soliciting
Dealer hereby authorizes and ratifies the execution and delivery of the Dealer Manager Agreement by the Dealer Manager as Dealer
Manager for itself and on behalf of all Soliciting Dealers (including Soliciting Dealer party hereto) and authorizes the Dealer
Manager to agree to any variation of its terms or provisions and to execute and deliver any amendment, modification or supplement
thereto. This Agreement may be amended at any time by the Dealer Manager by written notice to Soliciting Dealer, and any such amendment
shall be deemed accepted by Soliciting Dealer upon placing an order for sale of Shares after he has received such notice. Soliciting
Dealer hereby agrees to be bound by all provisions of the Dealer Manager Agreement relating to Soliciting Dealers. Soliciting Dealer
also authorizes the Dealer Manager to exercise, in the Dealer Manager’s discretion, all the authority or discretion now or
hereafter vested in the Dealer Manager by the provisions of the Dealer Manager Agreement and to take all such actions as the Dealer
Manager may believe desirable in order to carry out the provisions of the Dealer Manager Agreement and of this Agreement.

 

(b)          This
Agreement, except for the provisions of Sections 9, 10, 11, 12 and 13 and this Section 15,
may be terminated at any time by either party hereto by two days’ prior written notice to the other party and, in all events,
this Agreement shall terminate on the termination date of the Dealer Manager Agreement, except for the provisions of Sections
9, 10, 11, 12 and 13 and this Section 15.

 

(c)          Any
communications from Soliciting Dealer should be in writing addressed to the Dealer Manager at:

 

Realty Capital Securities, LLC

One Beacon Street, 14th
Floor

Boston, Massachusetts 02108

Facsimile No.: (857) 207-3397

Attention: Louisa Quarto

   President

 

with copies
to:

 

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036

Facsimile No.: (212) 969-2900

Attention: Peter M. Fass, Esq.

 

Proskauer Rose LLP

Three First National
Plaza

70 West Madison

Suite 3800

Chicago, Illinois 60602-4342

Attention: Michael J. Choate, Esq.

 

    	 

    	 

    

 

Any notice from the
Dealer Manager to Soliciting Dealer shall be deemed to have been duly given if mailed, communicated by electronic delivery or facsimile
or delivered by overnight courier to Soliciting Dealer at Soliciting Dealer’s address shown below.

 

(d)          Nothing
herein contained shall constitute the Dealer Manager, Soliciting Dealer, the other Soliciting Dealers or any of them as an association,
partnership, limited liability company, unincorporated business or other separate entity.

 

(e)          If
this Agreement is executed before the initial Effective Date, then the Dealer Manager will notify Soliciting Dealer in writing
when the initial Effective Date has occurred. Soliciting Dealer agrees that Soliciting Dealer will not make any offers to sell
the Shares or solicit purchasers for the Shares until Soliciting Dealer has received such written notice of the initial Effective
Date from the Dealer Manager or the Trust. This Agreement shall be effective for all sales by Soliciting Dealer on and after the
initial Effective Date.

 

(f)          The
Trust may authorize the Trust’s transfer agent to provide information to the Dealer Manager and Soliciting Dealer regarding
record holder information about the clients of Soliciting Dealer who have invested with the Trust on an on-going basis for so long
as Soliciting Dealer has a relationship with such client. Soliciting Dealer shall not disclose any password for a restricted website
or portion of a website provided to Soliciting Dealer in connection with the Offering and shall not disclose to any person, other
than an officer, director, employee or agent of Soliciting Dealer, any material downloaded from such restricted website or portion
of a restricted website.

 

(g)          Soliciting
Dealer shall have no right to assign this Agreement or any of its rights hereunder or to delegate any of its obligations. Any purported
assignment or delegation by Soliciting Dealer shall be null and void. The Dealer Manager shall have the right to assign any or
all of its rights and obligations under this Agreement by written notice, and Soliciting Dealer shall be deemed to have consented
to such assignment by execution hereof. Dealer Manager shall provide written notice of any such assignment to Soliciting Dealer.

 

(h)          This
Agreement may be executed (including by facsimile transmission) with counterpart signature pages or in counterpart copies, each
of which shall be deemed an original but all of which together shall constitute one and the same instrument comprising this Agreement.

 

(i)          The
invalidity or unenforceability of any provision of this Agreement shall not affect the other provisions hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provision were omitted.

 

    	 

    	 

    

 

(j)          The
failure of any party to insist upon or enforce strict performance by any other party of any provision of this Agreement or to exercise
any right under this Agreement shall not be construed as a waiver or relinquishment to any extent of such party’s right to
assert or rely upon any such provision or right in that or any other instance; rather, such provision or right shall be and remain
in full force and effect.

 

[Signature page follows.]

 

    	 

    	 

    

 

If the foregoing is
in accordance with Soliciting Dealer’s understanding and agreement, please sign and return the attached duplicate of this
Agreement. Soliciting Dealer’s indicated acceptance thereof shall constitute a binding agreement between Soliciting Dealer
and the Dealer Manager.

 

	 	Very truly yours, 	 
	 	 	 
	 	REALTY CAPITAL SECURITIES, LLC	 
	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

                    ,
20__

 

    	 

    	 

    

 

The undersigned dealer
confirms its agreement to act as a Soliciting Dealer pursuant to all the terms and conditions of the above Soliciting Dealer Agreement
and the attached Dealer Manager Agreement. The undersigned dealer hereby represents that it will comply with the applicable requirements
of the Securities Act and the Exchange Act and the published rules and regulations of the Commission thereunder, and applicable
blue sky or other state securities laws. The undersigned dealer represents and warrants that the undersigned dealer is duly registered
as a broker-dealer under the provisions of the Exchange Act and the Exchange Act Rules and Regulations or is exempt from such registration.
The undersigned dealer confirms that it and each salesperson acting on its behalf are members in good standing of FINRA and duly
licensed by each regulatory authority in each jurisdiction in which the undersigned dealer or such salesperson will offer and sell
Shares, or are exempt from registration with such authorities. The undersigned dealer hereby represents that it will comply with
the Rules of FINRA and all rules and regulations promulgated by FINRA.

 

	Dated:                     , 20__	 	 	 	 
	 	 	Name of Soliciting Dealer	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Federal Identification Number	 	 
	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 
	 	 	 	 	Authorized Signatory	 	 

 

Kindly have checks representing commissions forwarded as follows
(if different than above):

(Please type or print)

 

	Name of Firm:	 	 	 	 
	 	 	 	 	 
	Address:	 	 	 	 
	 	 	 	 	 
	 	 	Street	 	 
	 	 	 	 	 
	 	 	City	 	 
	 	 	 	 	 
	 	 	State and Zip Code	 	 
	 	 	 	 	 
	 	 	(Area Code) Telephone No.	 	 
	Attention:	 	 	 	 

 

    	 

    	 

    

 

SCHEDULE 1

TO

SOLICITING DEALER AGREEMENT WITH

REALTY CAPITAL SECURITIES, LLC

 

Soliciting Dealer represents and warrants
that it is currently licensed as a broker-dealer in the following jurisdictions:

 

	 ̈	Alabama 	 	 ̈ 	Nebraska
	 	 	 	 	 
	 ̈ 	Alaska 	 	 ̈ 	Nevada
	 	 	 	 	 
	 ̈ 	Arizona 	 	 ̈ 	New Hampshire
	 	 	 	 	 
	 ̈ 	Arkansas 	 	 ̈ 	New Jersey
	 	 	 	 	 
	 ̈ 	California 	 	 ̈ 	New Mexico
	 	 	 	 	 
	 ̈ 	Colorado 	 	 ̈ 	New York
	 	 	 	 	 
	 ̈ 	Connecticut 	 	 ̈ 	North Carolina
	 	 	 	 	 
	 ̈ 	Delaware 	 	 ̈ 	North Dakota
	 	 	 	 	 
	 ̈ 	District of Columbia 	 	 ̈ 	Ohio
	 	 	 	 	 
	 ̈ 	Florida 	 	 ̈ 	Oklahoma
	 	 	 	 	 
	 ̈ 	Georgia 	 	 ̈ 	Oregon
	 	 	 	 	 
	 ̈ 	Hawaii 	 	 ̈ 	Pennsylvania
	 	 	 	 	 
	 ̈ 	Idaho 	 	 ̈ 	Puerto Rico
	 	 	 	 	 
	 ̈ 	Illinois 	 	 ̈ 	Rhode Island
	 	 	 	 	 
	 ̈ 	Indiana 	 	 ̈ 	South Carolina
	 	 	 	 	 
	 ̈ 	Iowa 	 	 ̈ 	South Dakota
	 	 	 	 	 
	 ̈ 	Kansas 	 	 ̈ 	Tennessee
	 	 	 	 	 
	 ̈ 	Kentucky 	 	 ̈ 	Texas
	 	 	 	 	 
	 ̈ 	Louisiana 	 	 ̈ 	Utah
	 	 	 	 	 
	 ̈ 	Maine 	 	 ̈ 	Vermont
	 	 	 	 	 
	 ̈ 	Maryland 	 	 ̈ 	Virgin Islands
	 	 	 	 	 
	 ̈ 	Massachusetts 	 	 ̈ 	Virginia
	 	 	 	 	 
	 ̈ 	Michigan 	 	 ̈ 	Washington
	 	 	 	 	 
	 ̈ 	Minnesota 	 	 ̈ 	West Virginia
	 	 	 	 	 
	 ̈ 	Mississippi 	 	 ̈ 	Wisconsin
	 	 	 	 	 
	 ̈ 	Missouri 	 	 ̈ 	Wyoming
	 	 	 	 	 
	 ̈ 	MontanaExhibit
10.2

 

 

 ESCROW
AGREEMENT

 

LegacyTexas Bank

100 Throckmorton, Suite 1510

Fort Worth, Texas 76102

 

Re:     United
Development Funding Income Fund V

 

Ladies and Gentlemen:

 

United Development
Funding Income Fund V, a Maryland real estate investment trust (the “Trust”), will issue in a public offering
(the “Offering”) common shares of beneficial interest (the “Shares”) pursuant to a Registration
Statement on Form S-11 filed by the Trust with the Securities and Exchange Commission and a Prospectus included therein, as may
be amended or supplemented from time to time (the “Prospectus”). Realty Capital Securities, LLC, a Delaware
limited liability company (the “Dealer Manager”), will act as the exclusive dealer manager for the Offering.
The Shares will be offered by the Dealer Manager and select members (each being referred to herein as a “Dealer”
and collectively as the “Dealers”) of the Financial Industry Regulatory Authority (FINRA) on a reasonable best
efforts basis. The Trust and the Dealer Manager are entering into this Escrow Agreement (the “Agreement”) to
set forth the terms on which LegacyTexas Bank (the “Escrow Agent”), will hold and disburse the proceeds from
subscriptions for the purchase of the Shares in the Offering until such time as (i) in the case of subscriptions received
from all nonaffiliates of the Trust, the Trust has received and accepted subscriptions for Shares resulting in total minimum capital
raised of $2,000,000 (the “Required Capital”) and, thereafter, until otherwise directed by the Trust; (ii) in
the case of subscriptions received from residents of New York (“New York Subscribers”), the Trust has received
subscriptions for Shares from nonaffiliates of the Trust resulting in total minimum capital raised of $2,500,000 (the “New
York Required Capital”); (iii) in the case of subscriptions received from residents of Washington (“Washington
Subscribers”), the Trust has received subscriptions for Shares from nonaffiliates of the Trust resulting in total minimum
capital raised of $20,000,000 (the “Washington Required Capital”); and (iv) in the case of subscriptions received
from residents of Pennsylvania (“Pennsylvania Subscribers”), the Trust has received subscriptions for Shares
from nonaffiliates of the Trust resulting in total minimum capital raised of $37,500,000 (the “Pennsylvania Required Capital”).

 

The Trust hereby appoints
LegacyTexas Bank as Escrow Agent for purposes of holding the proceeds from the subscriptions for the Shares, on the terms and conditions
hereinafter set forth:

 

    	 

    	 

    

 

1.          Until
such time as the Trust has received subscriptions for Shares resulting in total minimum capital raised equal to the Required Capital
and such funds are disbursed from the Escrow Account, as hereinafter defined, in accordance with paragraph 3(a) hereof, persons
subscribing to purchase the Shares (the “Subscribers”) will be instructed by the Dealer Manager or any Dealer
to remit the purchase price in the form of checks, drafts, wires, Automated Clearing House (ACH) or money orders (hereinafter referred
to as “Instruments of Payment”) payable to the order of “LegacyTexas Bank, Escrow Agent for United Development
Funding Income Fund V.” Any Instruments of Payment made payable to a party other than the Escrow Agent shall be returned
to the Dealer Manager or the Dealer who submitted such Instrument of Payment. When the Dealer’s internal supervisory procedures
are conducted at the site at which the Instruments of Payment and the Subscription Materials (as defined below) are initially received
by the Dealer, by the end of the next business day after receipt of any Instruments of Payment and Subscription Materials, the
Dealer will send to the Escrow Agent such Instruments of Payment along with each Subscriber’s name, address, executed IRS
Form W-9, number of Shares purchased and purchase price remitted and any other subscription documentation (the “Subscription
Materials”). When the Dealer’s internal supervisory procedures are conducted at a different location (the “Final
Review Office”), the Dealer shall transmit the Instruments of Payment and the Subscription Materials to the Final Review
Office by the end of the next business day after receipt of any Instruments of Payment and Subscription Materials; the Final Review
Office will, by the end of the next business day following its receipt of the Instruments of Payment and the Subscription Materials,
forward the Instruments of Payment and the Subscription Materials to the Escrow Agent. The Dealer Manager or the Dealer also will provide
in writing to Escrow Agent, concurrently with the Subscription Materials and the Instruments of Payment, instructions regarding
the escrow account (i.e., the Escrow Account, New York Escrow Account, Pennsylvania Escrow Account or Washington Escrow Account,
as such terms are defined below) in which to deposit the proceeds of each Instrument of Payment (it being understood that absent
any written directions to the contrary, Escrow Agent shall deposit such proceeds in the Escrow Account) and notification whether
the applicable Subscriber is an affiliate of the Trust (it being understood that absent any written notification to the contrary,
Escrow Agent shall presume that each Subscriber is not an affiliate of the Trust). The Escrow Agent shall notify the Trust and
the Dealer Manager from time to time during the term of this Agreement of the names of any Subscribers for whom the Escrow Agent
has not received a properly executed IRS Form W-9, to the extent Escrow Agent is able to make such determination. The Escrow Agent
will keep and maintain the Subscription Materials and will deposit the Instruments of Payment from such Subscribers into an interest-bearing
deposit account entitled “Escrow Account for the Benefit of Subscribers for Shares of United Development Funding Income Fund
V” or such similar designation as the parties may agree (the “Escrow Account”) until such Escrow Account
has closed pursuant to paragraph 3(a) hereof. Instruments of Payment received from New York Subscribers (as identified as
such by the Trust or the Dealer Manager) shall be accounted for separately in a subaccount entitled “Escrow Account for the
Benefit of New York Subscribers” (the “New York Escrow Account”), until such New York Escrow Account has
closed pursuant to paragraph 3(a) hereof. Instruments of Payment received from Washington Subscribers (as identified as such by
the Trust or the Dealer Manager) shall be accounted for separately in a subaccount entitled “Escrow Account for the Benefit
of Washington Subscribers” (the “Washington Escrow Account”), until such Washington Escrow Account has
closed pursuant to paragraph 3(a) hereof. Instruments of Payment received from Pennsylvania Subscribers (as identified as such
by the Trust or the Dealer Manager) shall be accounted for separately in a subaccount entitled “Escrow Account for the Benefit
of Pennsylvania Subscribers” (the “Pennsylvania Escrow Account”), until such Pennsylvania Escrow Account
has closed pursuant to paragraph 3(a) hereof. Each of the Escrow Account, the New York Escrow Account, the Washington Escrow Account
and the Pennsylvania Escrow Account will be established and maintained in such a way as to permit the interest income calculations
described in paragraph 6. The Escrow Agent will send copies of all Subscription Materials and copies of all Instruments of Payment
to DST Systems, Inc., 430 West 7th Street, Kansas City, Missouri 64105 promptly after receipt.

 

    	-2-

    	 

    

 

2.          The
Escrow Agent will promptly process for collection the Instruments of Payment upon deposit into the Escrow Account, New York Escrow
Account, Washington Escrow Account or Pennsylvania Escrow Account, as applicable. Deposits will be held in the Escrow Account,
the New York Escrow Account, the Washington Escrow Account and the Pennsylvania Escrow Account, as applicable, until such funds
are disbursed in accordance with paragraph 3 hereof. It is the intention of the Trust and the Escrow Agent that, except as
set forth herein, prior to disbursement of the funds deposited in the Escrow Account, the New York Escrow Account, the Washington
Escrow Account or the Pennsylvania Escrow Account, such funds will not be subject to claims by creditors of the Trust, the Dealer
Manager, any Dealer or any of their affiliates; provided however, that such intention does not constitute any representation by
either the Trust or the Escrow Agent that the funds will not be subject to such claims. If any of the Instruments of Payment are
returned to the Escrow Agent for nonpayment prior to Escrow Agent’s receipt of collected funds from Instruments of Payment
in an aggregate amount which is less than the Required Capital or, in connection with subscriptions from New York Subscribers,
the New York Required Capital, or in connection with subscriptions from Washington Subscribers, the Washington Required Capital,
or in connection with subscriptions from Pennsylvania Subscribers, the Pennsylvania Required Capital, the Escrow Agent shall promptly
notify the Trust and the Dealer Manager of such nonpayment, and is authorized to debit the Escrow Account, the New York Escrow
Account, the Washington Escrow Account or the Pennsylvania Escrow Account, as applicable, in the amount of such returned payment
as well as any interest earned on the amount of such payment.

 

3.          (a)          Subject
to the provisions of paragraphs 3(b)-3(i) below:

 

(i)        Once
collected funds from Instruments of Payment in the Escrow Account are an amount equal to or greater than the Required Capital,
the Escrow Agent shall promptly notify the Trust and the Dealer Manager and, upon receiving written instruction from both the Trust
and the Dealer Manager, (A) disburse to the Trust, by check, ACH or wire transfer, the funds in the Escrow Account representing
the gross purchase price for the Shares in an amount directed by the Trust in such written notice, (B) disburse to the Subscribers
or the Trust, as applicable, any interest thereon pursuant to the provisions of paragraph 3(f), and (C) provide to the Trust
for delivery to the Director of Banking and Finance of the State of Nebraska an affidavit in substantially the form attached hereto
as Exhibit A which states that all of the conditions of this Agreement relating to the Escrow Account which are capable of being
satisfied as of the date of such affidavit have been met (it being understood that Escrow Agent shall provide such affidavit only
in the event that in Escrow Agent’s sole discretion all such conditions of this Agreement have been met). For purposes of
this Agreement, the term “collected funds” shall mean all funds received by the Escrow Agent that have cleared normal
banking channels and are in the form of cash or a cash equivalent. After such time, the Escrow Account shall remain open and the
Trust and the Dealer Manager shall continue to cause subscriptions for the Shares that are not to be deposited in the New York
Escrow Account, the Washington Escrow Account or the Pennsylvania Escrow Account to be deposited therein until the Trust informs
the Escrow Agent in writing to close the Escrow Account (prior to providing such notice to the Escrow Agent, the Trust shall provide
the Dealer Manager at least 5 days written notice of its intent to close the Escrow Account), and thereafter any Subscription Materials
and Instruments of Payment received by the Escrow Agent from Subscribers other than New York Subscribers, Washington Subscribers
and Pennsylvania Subscribers shall be forwarded directly to the Trust; provided that, if the Escrow Account remains open, until
the Escrow Account is closed as set forth herein, the funds and interest held therein shall be disbursed as set forth above at
any time upon written instruction from both the Trust and the Dealer Manager.

 

(ii)         Regardless
of any release of funds from the Escrow Account, the Dealer Manager or the Dealer shall continue to forward to the Escrow Agent
Subscription Materials and Instruments of Payment received from New York Subscribers and such Subscription Materials will be kept
and maintained by the Escrow Agent and such Instruments of Payment will be deposited into the New York Escrow Account by the Escrow
Agent until such time as both the Trust and the Dealer Manager notify the Escrow Agent in writing that total subscription proceeds
(including the amount then in the New York Escrow Account) equal or exceed the New York Required Capital.  Upon the receipt
of such written instruction from both the Trust and the Dealer Manager, the Escrow Agent shall (A) disburse to the Trust,
by check, ACH or wire transfer, the funds then in the New York Escrow Account representing the gross purchase price for the Shares
in an amount directed by the Trust in such written notice, and (B) disburse to the New York Subscribers or the Trust, as applicable,
any interest thereon pursuant to the provisions of paragraph 3(f). Following such disbursements, the Escrow Agent shall close
the New York Escrow Account, and thereafter any Subscription Materials and Instruments of Payment received by the Escrow Agent
from New York Subscribers shall be, in the case of Subscription Materials received from New York Subscribers, kept and maintained
by the Escrow Agent and, in the case of Instruments of Payment received from New York Subscribers, deposited directly to the Escrow
Account (or to the Trust, if it has closed the Escrow Account, as instructed in writing by the Trust).

 

    	-3-

    	 

    

 

(iii)          Regardless
of any release of funds from the Escrow Account or the New York Escrow Account, the Dealer Manager or the Dealer shall continue
to forward to the Escrow Agent Subscription Materials and Instruments of Payment received from Washington Subscribers and such
Subscription Materials will be kept and maintained by the Escrow Agent and such Instruments of Payment will be deposited into the
Washington Escrow Account until such time as both the Trust and the Dealer Manager notify the Escrow Agent in writing that total
subscription proceeds (including the amount then in the Washington Escrow Account) equal or exceed the Washington Required Capital.
 Upon the receipt of such written instruction from both the Trust and the Dealer Manager, the Escrow Agent shall (A) disburse
to the Trust, by check, ACH or wire transfer, the funds then in the Washington Escrow Account representing the gross purchase price
for the Shares in an amount directed by the Trust in such written notice, and (B) disburse to the Washington Subscribers or the
Trust, as applicable, any interest thereon pursuant to the provisions of paragraph 3(f). Following such disbursements, the
Escrow Agent shall close the Washington Escrow Account, and thereafter any Subscription Materials and Instruments of Payment received
by the Escrow Agent from Washington Subscribers shall be, in the case of Subscription Materials received from Washington Subscribers,
kept and maintained by the Escrow Agent and, in the case of Instruments of Payment received from Washington Subscribers, deposited
directly to the Escrow Account (or to the Trust, if it has closed the Escrow Account, as instructed in writing by the Trust).

 

(iv)        Regardless
of any release of funds from the Escrow Account, the New York Escrow Account or the Washington Escrow Account, the Dealer Manager
or the Dealer shall continue to forward to the Escrow Agent Subscription Materials and Instruments of Payment received from Pennsylvania
Subscribers and such Subscription Materials will be kept and maintained by the Escrow Agent and such Instruments of Payment will
be deposited into the Pennsylvania Escrow Account until such time as both the Trust and the Dealer Manager notify the Escrow Agent
in writing that total subscription proceeds (including the amount then in the Pennsylvania Escrow Account) equal or exceed the
Pennsylvania Required Capital.  Upon the receipt of such written instruction from both the Trust and the Dealer Manager,
the Escrow Agent shall (A) disburse to the Trust, by check, ACH or wire transfer, the funds then in the Pennsylvania Escrow Account
representing the gross purchase price for the Shares in an amount directed by the Trust in such written notice, and (B) disburse
to the Pennsylvania Subscribers or the Trust, as applicable, any interest thereon pursuant to the provisions of paragraph 3(f).
Following such disbursements, the Escrow Agent shall close the Pennsylvania Escrow Account, and thereafter any Subscription Materials
and Instruments of Payment received by the Escrow Agent from Pennsylvania Subscribers shall be, in the case of Subscription Materials
received from Pennsylvania Subscribers, kept and maintained by the Escrow Agent and, in the case of Instruments of Payment received
from Pennsylvania Subscribers, deposited directly to the Escrow Account (or to the Trust, if it has closed the Escrow Account,
as instructed in writing by the Trust).

 

(b)          At
the close of business on the date that is one year following commencement of the Offering (the “Expiration Date”)
(such commencement date shall be promptly provided to the Escrow Agent by the Trust after the commencement of the Offering), the
Escrow Agent shall promptly notify the Trust and the Dealer Manager (the “Expiration Notice”) if it is not in
receipt of Subscription Materials received on or before the Expiration Date and Instruments of Payment dated not later than the
Expiration Date in the aggregate amount that equals or exceeds the Required Capital (from all sources but exclusive of any funds
received from subscriptions for Shares from entities that are affiliated with the Trust). Following the tenth calendar day after
the date of the Expiration Notice, the Escrow Agent shall promptly return directly to each Subscriber the collected funds deposited
in the Escrow Account, the New York Escrow Account, the Washington Escrow Account and the Pennsylvania Escrow Account on behalf
of such Subscriber, or shall return the Instruments of Payment delivered but not yet processed for collection prior to such time,
together with interest in the amounts calculated pursuant to paragraph 6 for each Subscriber, at the address provided in the
Subscription Materials. However, the Escrow Agent shall not be required to remit any payments until funds represented by such payments
have been collected.

 

    	-4-

    	 

    

 

(c)          Notwithstanding
subparagraphs 3(a) and 3(b) above, if on or before the close of business on such date that is 120 days after commencement of the
Offering (the “Initial Escrow Period”) (such commencement date shall be promptly provided to the Escrow Agent
by the Trust after the commencement of the Offering), Escrow Agent is not in receipt of Instruments of Payment dated not later
than that date from nonaffiliated sources in an amount that equals or exceeds the Pennsylvania Required Capital, the Escrow Agent
shall promptly notify the Trust and the Dealer Manager. Thereafter, the Trust shall send to each Pennsylvania Subscriber by certified
mail within ten (10) calendar days after the end of the Initial Escrow period a notification in the form of Exhibit B. If, pursuant
to such notification, a Pennsylvania Subscriber requests the return of his or her subscription funds within ten (10) calendar days
after receipt of the notification (the “Request Period”), the Escrow Agent shall, within fifteen (15) calendar
days after receipt of such request from the Investor, deliver directly to each such Pennsylvania Subscriber the collected funds
from Instruments of Payment deposited in the Pennsylvania Escrow Account on behalf of such Pennsylvania Subscriber or shall return
the Instruments of Payment delivered but not yet processed for collection prior to such time to the address provided by the Trust,
together with interest income in the amounts calculated pursuant to paragraph 6. However, the Escrow Agent shall not be required
to remit such payments until the Escrow Agent has collected funds represented by such payments.

 

(d)          The
subscription funds of Pennsylvania Subscribers who do not request the return of their subscription funds within the Request Period
shall remain in the Pennsylvania Escrow Account for successive 120-day escrow periods (a “Successive Escrow Period”),
each commencing automatically upon the termination of the Initial Escrow Period or prior Successive Escrow Period, as applicable,
and the Trust and Escrow Agent shall follow the notification and payment procedure set forth in paragraph 3(c) above with respect
to the Initial Escrow Period for each Successive Escrow Period until the occurrence of the earliest of (i) the Expiration Date,
(ii) such time as the Trust notifies the Escrow Agent in writing pursuant to paragraph 3(a)(iv) that total subscription proceeds
(including the amount then in the Pennsylvania Escrow Account) equal or exceed the Pennsylvania Required Capital and the disbursement
of the Pennsylvania Escrow Account on the terms specified herein, or (iii) all funds held in the Pennsylvania Escrow Account having
been returned to the Pennsylvania Subscribers in accordance with the provisions hereof.

 

(e)          If
the Trust notifies the Escrow Agent in writing that it rejects any subscription for which the Escrow Agent has collected funds,
the Escrow Agent shall promptly disburse out of the Escrow Account, New York Escrow Account, Washington Escrow Account or Pennsylvania
Escrow Account, as applicable, the amount set forth in such notification to the Subscriber also set forth in such notification.
If the Trust rejects any subscription for which the Escrow Agent has not yet collected funds but has submitted the Subscriber’s
Instrument of Payment for collection, the Escrow Agent shall promptly return the funds in the amount of the Subscriber’s
Instrument of Payment to the rejected Subscriber after such funds have been collected. If the Escrow Agent has not yet submitted
a rejected Subscriber’s Instrument of Payment for collection, the Escrow Agent shall promptly remit the Subscriber’s
Instrument of Payment directly to the Subscriber. The Trust acknowledges and agrees that Escrow Agent has no responsibility for
accepting, rejecting or approving subscriptions. If the Offering is terminated prior to the receipt of Subscription Materials and
Instruments of Payment from nonaffiliated sources in an amount that equals or exceeds the New York Required Capital, Washington
Required Capital or Pennsylvania Required Capital, any subscriptions held in the New York Escrow Account, the Washington Escrow
Account or the Pennsylvania Escrow Account, respectively, will be deemed rejected by the Trust, and the subscription funds held
in such escrow accounts, if any, will be remitted to the respective Subscribers in accordance with this paragraph 3(e), together
with interest income in the amounts calculated pursuant to paragraph 6.

 

    	-5-

    	 

    

 

(f)          At
any time after funds are disbursed upon the Trust’s and the Dealer Manager’s instructions pursuant to paragraph 3(a)
above, on the tenth day following the date of receipt of such instruction, the Escrow Agent shall promptly disburse directly to
each Subscriber out of the Escrow Account, New York Escrow Account, Washington Escrow Account or Pennsylvania Escrow Account, as
applicable, the amount of the interest payable to such Subscriber. However, the Escrow Agent shall not be required to remit any
payments until the Escrow Agent has collected funds represented by such payments. The Escrow Agent may use such reasonable allocation
methods as it determines to be equitable in allocating interest income among Subscribers and as between the Subscribers and the
Trust if the funds bear interest at multiple rates during the escrow period. The Trust agrees to accept Escrow Agent’s calculation
of any interest hereunder absent manifest mathematical error. As used in this Agreement, “subscription proceeds” shall
mean the proceeds from the applicable Instruments of Payment.

 

(h)          Any
disbursement of funds by the Escrow Agent to Subscribers shall be made to the persons named in the Subscription Materials at the
address stated therein by cashiers’ check mailed by United States mail.

 

(i)          If
at the time of any required disbursement of interest to a Subscriber, the Escrow Agent has not received a properly executed IRS
Form W-9, the Escrow Agent shall withhold from any interest distribution such amount as may be required to be withheld by law and
remit such withheld amounts to the Internal Revenue Service in timely fashion.

 

4.          Prior
to the disbursement of funds deposited in the Escrow Account, the New York Escrow Account, the Washington Escrow Account or the
Pennsylvania Escrow Account in accordance with the provisions of paragraph 3 hereof, the Escrow Agent shall invest all of
the funds deposited as well as earnings and interest derived therefrom in the Escrow Account, the New York Escrow Account, the
Washington Escrow Account or the Pennsylvania Escrow Account, as applicable, in bank money market accounts maintained with the
Escrow Agent.

 

It is hereby expressly
agreed and stipulated by the parties hereto that the Escrow Agent shall not be required to exercise any discretion hereunder and
shall have no investment or management responsibility and, accordingly, shall have no duty to, or liability for its failure to,
provide investment recommendations or investment advice to the parties hereto. It is the intention of the parties hereto that the
Escrow Agent will never be required to use, advance or risk its own funds or otherwise incur financial liability in the performance
of any of its duties or the exercise of any of its rights and powers hereunder.

 

5.          The
Escrow Agent is entitled to rely upon written instructions received from the Trust or the Dealer Manager, unless the Escrow Agent
has actual knowledge that such instructions are not valid or genuine; provided that, if in the Escrow Agent’s opinion, any
instructions from the Trust or the Dealer Manager are unclear, the Escrow Agent may request clarification from the Trust or the
Dealer Manager, as the case may be, prior to taking any action, and if such instructions continue to be unclear, the Escrow Agent
may rely upon written instructions from the Trust’s or the Dealer Manager’s legal counsel, as the case may be, in distributing
or continuing to hold any funds or may take any other action authorized hereunder. However, the Escrow Agent shall not be required
to disburse any funds attributable to Instruments of Payment that have not been processed for collection, until such funds are
collected, and then shall disburse such funds in compliance with the disbursement instructions from both the Trust and the Dealer
Manager.

 

    	-6-

    	 

    

 

6.          If
the Offering terminates prior to receipt of the Required Capital (such termination date shall be promptly provided to the Escrow
Agent by the Trust), or one or more Pennsylvania Subscribers elects to have his or her subscription proceeds returned in accordance
with paragraph 3, interest income earned on subscription proceeds deposited in the Escrow Account (the “Escrow Income”),
the New York Escrow Account (the “New York Escrow Income”), the Washington Escrow Account (the “Washington
Escrow Income”) and the Pennsylvania Escrow Account (the “Pennsylvania Escrow Income”) as applicable,
shall be remitted to Subscribers in accordance with paragraph 3 and without any deductions for fees or escrow expenses. For
each Subscriber who has deposited funds that have been held in escrow by the Escrow Agent, such Subscriber’s pro rata portion
of Escrow Income shall be determined as follows: the total amount of Escrow Income shall be multiplied by a fraction, (a) the
numerator of which is determined by multiplying the number of Shares that were subscribed for by the Subscriber times the number
of days the Subscriber’s proceeds were held in the Escrow Account prior to the date of disbursement, and (b) the denominator
of which is the total of the numerators for all Subscribers in such account who have deposited funds that have been held in escrow
by the Escrow Agent. The Escrow Agent shall remit all such Escrow Income, New York Escrow Income, Washington Escrow Income and
Pennsylvania Escrow Income in accordance with paragraph 3. If the Trust chooses to leave the Escrow Account open after receiving
the Required Capital, then it shall make regular acceptances of subscriptions therein, but no less frequently than monthly, and
the Escrow Income from the last such acceptance shall be calculated and remitted to the Subscribers or the Trust, as applicable,
pursuant to the provisions of paragraph 3(f). The Trust agrees to accept Escrow Agent’s calculation of the Escrow Income,
New York Escrow Income, Washington Escrow Income, Pennsylvania Escrow Income, and any pro rata portion thereof, absent manifest
mathematical error.

 

7.          Escrow
Agent shall be paid by the Trust for its services to be rendered hereunder in accordance with Exhibit C attached hereto. Escrow
Agent acknowledges that the Dealer Manager has no obligation to pay the Escrow Agent in accordance with Exhibit C attached hereto
or otherwise.

 

8.          The
Escrow Agent will be liable as a depository only and will not be responsible for the sufficiency or accuracy of the form, execution
or validity of any check or any other document delivered to the Escrow Agent hereunder or any description of the property or other
thing contained therein or the identity, authority or rights of the persons executing or delivering or purporting to execute or
deliver any such document. The Escrow Agent’s duties hereunder are limited to the safekeeping of the assets, instruments
or other documents received and the delivery of the same in accordance with this Agreement. The Escrow Agent will not be liable
for any act or omission done in good faith, or for any claim, demand, loss or damage made or suffered by any party to this Agreement,
excepting such as may arise through or be caused by the Escrow Agent’s misconduct or negligence. The Escrow Agent is authorized
to rely on any document believed by the Escrow Agent to be authentic in making any delivery of funds or property hereunder. Escrow
Agent shall not be required to comply with any direction or instruction other than those specifically described herein.

 

9.          In
accepting any funds or documents delivered hereunder, it is agreed and understood by the undersigned that the Escrow Agent will
not be called on to construe any contract or instrument deposited herewith, and in the event of a dispute will be required to act
in respect to the deposit herein made only on the consent in writing of the undersigned. In the failure of such consent, the Escrow
Agent reserves the right to hold any money in its possession, and all papers in connection with or concerning this escrow, until
a mutual agreement in writing has been reached between all of said parties and delivered to the Escrow Agent or until delivery
is legally authorized and ordered by final judgment or decree of a court of competent jurisdiction. If the Escrow Agent obeys or
complies with any judgment, order or decree of a court of competent jurisdiction, the Escrow Agent will not be liable to any of
the parties hereto nor to any other person, firm or corporation by reason of such compliance, notwithstanding any such judgment,
order or decree being subsequently reversed, modified, annulled, set aside or vacated.

 

    	-7-

    	 

    

 

10.         In
addition to Escrow Agent’s other rights herein, in the event any contest, dispute, conflicting claim or litigation arises
or exists in connection with this Agreement or Escrow Agent is otherwise in doubt as to what action to take hereunder, then in
such event, Escrow Agent may, in its sole discretion, (i) continue to retain the funds as Escrow Agent during the pendency of any
such contest, dispute, conflicting claim or litigation or resolution of such matter creating doubt as to what action Escrow Agent
is to take hereunder, provided that both the Trust and the Dealer Manager consent to Escrow Agent retaining such funds or (ii)
interplead the funds held in the Escrow Account, New York Escrow Account, Washington Escrow Account and Pennsylvania Escrow Account
into the office of the court clerk of Dallas County, State of Texas, in which event, Escrow Agent shall be entitled to be repaid
its expenses, including court costs and attorneys’ fees that it incurs as a result thereof, and in which event this Agreement
shall be deemed terminated. Each of the Trust and the Dealer Manager consents and agrees to the jurisdiction of the District Court
of Dallas County, Texas for such purpose.

 

11.         If
at any time Escrow Agent is served with any judicial or administrative order, judgment, decree, writ or other form of final judicial
or administrative process which in any way affects the property held in escrow hereunder (the “Escrow Property”)
(including but not limited to orders of attachment or garnishment or other forms of levies or injunctions or stays relating to
the transfer of Escrow Property), Escrow Agent is authorized to comply therewith in any manner as it or its legal counsel of its
own choosing deems appropriate; and if Escrow Agent complies with any such judicial or administrative order, judgment, decree,
writ or other form of judicial or administrative process, Escrow Agent shall not be liable to any of the parties hereto or to any
other person or entity even though such order, judgment, decree, writ or process may be subsequently modified or vacated or otherwise
determined to have been without legal force or effect.

 

12.         (a)          Escrow
Agent shall not be liable for any action taken or omitted or for any loss or injury resulting from its actions or its performance
or lack of performance of its duties hereunder in the absence of negligence or misconduct on its part. In no event shall Escrow
Agent be liable (i) for acting in accordance with or relying upon any instruction, notice, demand, certificate or document
from the Trust pursuant to paragraph 5 hereof (ii) for any consequential, punitive or special damages, (iii) for the acts or omissions
of its nominees, correspondents, designees, subagents or custodians, provided that the same have been selected by the Escrow Agent
with reasonable care, or (iv) for an amount in excess of the value of the collected funds in the Escrow Account, the New York Escrow
Account, the Washington Escrow Account and the Pennsylvania Escrow Account, valued as of the date of deposit.

 

(b)          Escrow
Agent shall not incur any liability for not performing any act or fulfilling any duty, obligation or responsibility hereunder by
reason of any occurrence beyond the reasonable control of Escrow Agent (including but not limited to any act or provision of any
present or future law or regulation or governmental authority, any act of God or war, or the unavailability of the Federal Reserve
Bank wire or telex or other wire or communication facility).

 

13.         Escrow
Agent shall not be responsible in any respect for the form, execution, validity, value or genuineness of documents or securities
deposited hereunder, or for any description therein, or for the identity, authority or rights of persons executing or delivering
or purporting to execute or deliver any such document, security or endorsement.

 

14.         THE
TRUST SHALL BE LIABLE FOR AND SHALL REIMBURSE AND INDEMNIFY ESCROW AGENT, ITS OFFICERS, DIRECTORS, PARTNERS, EMPLOYEES AND AGENTS
(EACH HEREIN CALLED AN “INDEMNIFIED PARTY”) AND HOLD THE INDEMNIFIED PARTIES HARMLESS FROM AND AGAINST ANY AND
ALL CLAIMS, LOSSES, LIABILITIES, COSTS, DAMAGES OR EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES AND EXPENSES) (COLLECTIVELY,
“LOSSES”) ARISING FROM OR IN CONNECTION WITH OR RELATED TO THIS AGREEMENT OR BEING ESCROW AGENT HEREUNDER (INCLUDING
BUT NOT LIMITED TO LOSSES INCURRED BY THE INDEMNIFIED PARTIES IN CONNECTION WITH THE SUBMISSION OF THE AFFIDAVIT ATTACHED HERETO
AS EXHIBIT A TO THE DIRECTOR OF BANKING AND FINANCE OF THE STATE OF NEBRASKA); PROVIDED, HOWEVER, THAT NOTHING CONTAINED HEREIN
SHALL REQUIRE THE INDEMNIFIED PARTIES TO BE INDEMNIFIED FOR LOSSES CAUSED BY THE INDEMNIFIED PARTIES’ NEGLIGENCE OR MISCONDUCT.

 

    	-8-

    	 

    

 

15.         All
communications and notices (each a “Notice”) required or permitted by this Agreement shall be in writing and
shall be delivered personally or by messenger or sent by overnight delivery service or via telecopy or other electronic transmission,
in all cases addressed to the person for whom it is intended at such person’s address set forth below or to such other address
as a party shall have designated by notice in writing to the other party in the manner provided by this paragraph:

 

(a)          if
to the Trust:

 

United Development Funding Income
Fund V

The United Development Funding
Building

1301 Municipal Way

Suite 100

Grapevine, Texas 76051

Attention: Cara Obert

 

(b)          if
to the Dealer Manager:

 

Realty Capital Securities, LLC

One Beacon Street, 14th
Floor

Boston, Massachusetts 02108

Attention:
     Louisa Quarto 

       President

 

(c)          if
to the Escrow Agent:

 

LegacyTexas Bank

100 Throckmorton, Suite 1510

Fort Worth, Texas 76102

Attention: Dawn Velekei

 

Each party hereto may, from time to time,
change the address to which Notices to it are to be delivered or mailed hereunder by Notice in accordance herewith to the other
parties. Each Notice shall be deemed given and effective upon actual receipt (or refusal of receipt).

 

16.         This
Agreement shall be governed by the laws of the State of Texas as to both interpretation and performance without regard to the conflict
of laws rules thereof.

 

17.         The
provisions of this Agreement shall be binding upon the legal representatives, successors, and assigns of the parties hereto.

 

18.         Each
of the Trust and the Dealer Manager hereby acknowledges that LegacyTexas Bank is serving as Escrow Agent only for the limited purposes
herein set forth, and hereby agrees that it will not represent or imply that, by serving as Escrow Agent hereunder or otherwise,
it has investigated the desirability or advisability of investment in the Trust or has approved, endorsed or passed upon the merits
of the Shares or the Trust or has in any way reviewed or endorsed any disclosures made by the Trust relating thereto, nor shall
the Trust use the name of the Escrow Agent in any manner whatsoever in connection with the offer or sale of the Shares other than
by acknowledgment that it has agreed to serve as Escrow Agent for the limited purposes herein set forth.

 

    	-9-

    	 

    

 

19.         This
Agreement and any amendment hereto may be executed (including by facsimile transmission) by the parties hereto with counterpart
signature pages or in one or more counterparts, each of which shall be deemed to be an original.

 

20.         The
Escrow Agent shall be bound only by the terms of this Agreement with respect to the subject matter of this Agreement and shall
not be bound by or incur any liability in connection with the subject matter of this Agreement with respect to any other agreements
or understanding between any other parties, whether or not the Escrow Agent has knowledge of any such agreements or understandings.

 

21.         The
Escrow Agent represents and warrants that it is a “bank,” as such term is defined in Section 3(a)(6) of the Securities
Exchange Act of 1934, as amended.

 

22.         The
provisions set forth in paragraphs 7-20 and 23 herein shall survive the termination of this Agreement and/or the resignation or
removal of the Escrow Agent.

 

23.         In
the event that any part of this Agreement is declared by any court or other judicial or administrative body to be null, void, or
unenforceable, said provision shall survive to the extent it is not so declared, and all of the other provisions of this Agreement
shall remain in full force and effect.

 

24.         Unless
otherwise provided in this Agreement, final termination of this Agreement shall occur on the date that all funds held in the Escrow
Account, the New York Escrow Account, the Washington Escrow Account and the Pennsylvania Escrow Account are distributed either
(a) to the Trust or to Subscribers and the Trust has informed the Escrow Agent in writing to close the Escrow Account, the
New York Escrow Account, the Washington Escrow Account and the Pennsylvania Escrow Account pursuant to paragraph 3 hereof
or (b) to a successor escrow agent upon written instructions from both the Trust and the Dealer Manager.

 

25.         This
Agreement shall not be modified, waived, revoked, released or terminated unless reduced to writing and signed by all parties hereto,
unless otherwise provided herein.

 

26.         The
Escrow Agent may resign at any time from its obligations under this Agreement by providing written notice to the Trust and the
Dealer Manager. Such resignation shall be effective on the date specified in such notice, which shall be not less than thirty days
after such written notice has been given. The Escrow Agent shall have no responsibility for the appointment of a successor escrow
agent.

 

27.         The
Escrow Agent may be removed for cause by the Trust by written notice to the Escrow Agent and the Dealer Manager effective on the
date specified in such written notice.

 

28.         The
appointment of any successor escrow agent may occur only upon the acceptance of both the Trust and the Dealer Manager, which acceptance
shall not be unreasonably withheld, and upon the written acceptance by the successor escrow agent of substantially all of the terms
and conditions of this Agreement.

 

29.         The
Trust will provide the Escrow Agent a copy of the final Prospectus and any amendments or supplements thereto, in each case within
5 days of first use by the Trust.

 

[Signature page follows]

 

    	-10-

    	 

    

 

Agreed to as of the
22 day of July, 2014.

 

	 	UNITED DEVELOPMENT FUNDING INCOME FUND V
	 	 
	 	By:	/s/ David Hanson	 
	 	David Hanson
	 	Chief Operating Officer
	 	 
	 	Realty Capital Securities, LLC
	 	 
	 	By: 	/s/ Edward M. Weil, Jr.	 
	 	Edward M. Weil, Jr.
	 	President and Chief Operating Officer

 

The terms and conditions contained above
are hereby accepted and agreed to by:

 

	LegacyTexas Bank, as Escrow Agent	 
	 	 	 
	By:  	/s/ Lea Ann Capel	 	 
	Name:	Lea Ann Capel	 
	Title:	Executive Vice President – Chief Operations Officer	 

 

[Signature Page to Escrow Agreement]

 

    	 

    	 

    

 

EXHIBIT
A

 

FORM OF
ESCROW AGENT AFFIDAVIT FOR NEBRASKA

 

	STATE OF	 	 
	COUNTY OF	 	 

 

ESCROW AGENT
AFFIDAVIT

 

____________________
(the “Affiant”), being duly sworn, deposes and says:

 

That the Affiant is
a duly appointed and authorized representative of LegacyTexas Bank (the “Escrow Agent”);

 

That the Escrow Agent
is the duly appointed and authorized escrow agent for the public offering of the securities (the “Offering”) of United
Development Funding Income Fund V (the “Trust”);

 

That all of the conditions
of that certain Escrow Agreement entered into by and between the Escrow Agent, the Trust, and Realty Capital Securities, LLC in
connection with the Offering and effective as of the 22nd day of July, 2014 (the “Agreement”) which are
capable of being satisfied as of the date hereof have been met.

 

Affiant makes this
Affidavit to the State of Nebraska Department of Banking and Finance pursuant to Nebraska regulations Chapter 25, Section 003.01C1
promulgated under §8-1120(3) of the Securities Act of Nebraska.

 

IN WITNESS WHEREOF,
the undersigned has duly executed this document this ____ day of _____________, 20__.

 

	 	By: 	 	 
	 	Name: 	 	 
	 	Title: 	 	 

 

Sworn to and subscribed before me

this ____ day of ___________, 20__.

 

	 	 
	Notary Public	 
	 	 
	My commission expires:	 	 
	 	 
	(NOTARIAL SEAL)	 

 

    	A-1

    	 

    

 

EXHIBIT
B

 

FORM OF
NOTICE TO PENNSYLVANIA SUBSCRIBERS

You have tendered a
subscription to purchase common shares of beneficial interest of United Development Funding Income Fund V (the “Trust”).
Your subscription is currently being held in escrow. The guidelines of the Pennsylvania Securities Commission do not permit the
Trust to accept subscriptions from Pennsylvania residents until an aggregate of $37,500,000 of gross offering proceeds have been
received by the Trust. The Pennsylvania guidelines provide that until this minimum amount of offering proceeds is received by the
Trust, every 120 days during the offering period Pennsylvania Subscribers may request that their subscription be returned.

 

If you wish to continue
your subscription in escrow until the Pennsylvania minimum subscription amount is received, nothing further is required.

 

If you wish to terminate
your subscription for the Trust’s shares and have your subscription returned, please so indicate below, sign, date, and return
to the Escrow Agent at LegacyTexas Bank, 100 Throckmorton, Suite 1510, Fort Worth, Texas 76102, Attn: Dawn Velekei.

 

I hereby terminate
my prior subscription to purchase common shares of beneficial interest of United Development Funding Income Fund V and request
the return of my subscription funds. I certify to United Development Funding Income Fund V that I am a resident of Pennsylvania.

 

	 	Signature:	 
	 	 	 
	 	Name: 	 
	 	 	(please print)
	 	 	 
	 	Date: 	 

 

	Please send the subscription refund to:	 
	 	 
	 	 
	 	 
	 	 

 

    	B-1

    	 

    

 

 EXHIBIT
C

 

escrow agent
compensation

 

None.

 

    	C-1

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