Document:

Exhibit 10.1

 

PURCHASE AND SALE AGREEMENT

 

PURCHASE AND SALE AGREEMENT
(“Agreement”) dated as of January 15, 2014 (the “Effective Date”), by and between PARK
KINGSTON INVESTORS, LLC, a North Carolina limited liability company (“Seller”), with an address of 2448
Park Road, Charlotte, NC 28203, and BLUEROCK REAL ESTATE, L.L.C., a Delaware limited liability company (“Buyer”),
with an address of 712 Fifth Avenue, 9th Floor, New York, NY 10019.

 

In consideration of the
mutual undertakings and covenants herein contained, Seller and Buyer hereby covenant and agree as follows:

 

SECTION
1

 

SALE OF PROPERTY, ACCEPTABLE TITLE, and CONSTRUCTION

 

1.01       Agreement
to Buy and to Sell; Property. Seller shall sell to Buyer, and Buyer shall purchase from Seller, at the price and upon the terms
and conditions set forth in this Agreement all of Seller’s right, title and interest, if any, in and to the following (collectively,
the “Property”):

 

(a)          those
certain tracts or parcels of land more particularly described on Schedule B-1 attached hereto (the “Phase
I Land”) and Schedule B-2 attached hereto (the “Phase II Land”, and together with the Phase
I Land, collectively referred to as the “Land”);

 

(b)          the
apartment complex more particularly described on Schedule A, which contains, or will contain, related improvements, facilities,
fixtures, amenities, structures, driveways and walkways, all of which have been constructed, or will be constructed, on the Land
(collectively, the “Improvements”, and together with the Land on which the applicable Improvements are located,
either the “Phase I Real Property” or the “Phase II Real Property”, as applicable). The Phase
I Real Property and Phase II Real Property are each individually referred to herein as a “Real Property” and
collectively as the “Real Properties.”

 

(c)          any
alleys, strips or gores adjoining the Land, and any easements, rights-of-way or other interests in, on, under or to, any land,
highway, street, road, right-of-way or avenue, open or proposed, in, on, under, across, in front of, abutting or adjoining the
Land, and all right, title and interest of Seller in and to any awards for damage thereto by reason of a change of grade thereof;

 

(d)          the
accessions, appurtenant rights, privileges, appurtenances and all the estate and rights of Seller in and to the Real Properties,
as applicable, or otherwise appertaining to any of the property described in the immediately preceding clauses (a), (b) and/or
(c);

 

(e)          the
tangible personal property owned by Seller and located on or in or used solely in connection with the Real Properties, including,
without limitation, any and all appliances located within apartments units and those items of personal property listed on Schedule
C attached hereto and incorporated herein by reference; excluding, however, any computer software (but not the data pertaining
to the operation of the Property) and those items of personal property listed on Schedule C-1 (collectively, the “Personal
Property”);

 

(f)          all
Service Contracts (as hereinafter defined) that are being assumed by Buyer in accordance with this Agreement and the Construction
Contracts (as hereinafter defined) that are being assumed by Buyer in accordance with this Agreement pursuant to Section 9.01(n)
and/or 9.03 of this Agreement; and

 

    	 

    	 

    

 

(g)          the
Leases (as hereinafter defined) and any refundable security or other refundable deposits thereunder and, to the extent assignable
without cost to Seller, any intangible property now or hereafter owned by Seller and used solely in connection with the Real Property
and Personal Property, including all certificates of occupancy, warranties, guaranties, governmental permits, approvals and licenses,
the Real Property names listed on Schedule A attached hereto and variations thereof and any other trade names and trademarks,
websites and the contents thereon, including but not limited to www.[N/A].com, social media identities including, without
limitation, any of the same on Facebook and Twitter associated with the Real Property, together with all related IDs, access codes,
and passwords, alarm codes, and all telephone numbers and listings associated with the Real Property (the “Intangible
Property”). Notwithstanding the foregoing, the Intangible Property shall not include any rights to the names “Marsh”,
“Marsh Realty”, “Marsh Properties”, “Merrifield Patrick Vermillion”, or “MPV” (collectively,
“Marsh/MPV”) or any trademarks, logos, trade colors, service marks and trade names, or derivations thereof,
of Marsh/MPV (collectively, the “Marsh/MPV Trademarks”), and any advertising or promotional and similar materials
which contain any of the Marsh/MPV Trademarks, all of which Seller may, but shall not be obligated to remove from the Property
prior to the applicable Closing (as defined below). Promptly after the applicable Closing (as hereinafter defined), Buyer will
“banner” or otherwise temporarily mask the portion of all signage containing the Marsh/MPV Trademarks to indicate the
new ownership, failing which, upon five days’ notice, Seller may do so at Buyer’s expense. Further, within thirty (30)
days after the applicable Closing, Buyer shall cause any Marsh/MPV Trademarks to be removed from the Property, failing which, upon
five days’ notice, Seller may do so at Buyer’s expense. The provisions of this Section 1.01(g) shall survive each Closing
indefinitely.

 

1.02         Title.
Buyer shall obtain a commitment for title insurance covering each Real Property from Madison Title Agency (the “Title
Insurer”) and legible copies of all instruments and plans mentioned therein as exceptions to title (all of such items
are hereinafter collectively referred to as the “Commitment” and collectively, the “Commitments”)
for owner’s title insurance policies to be issued to Buyer at each Closing (the “Title Policies”). Each
Commitment shall be in the amount of the Allocated Purchase Price (as defined in Section 2.01 hereof) for the applicable Real
Property. Should such Commitment contain any title exceptions or other matters which are not acceptable to Buyer (“Objectionable
Title Matters”), Buyer shall, on or prior to the date that is ten (10) days prior to the expiration of the Inspection
Period (as defined herein), notify Seller of any such Objectionable Title Matters. If Buyer fails to so notify Seller of any Objectionable
Title Matters, all exceptions and other matters appearing in the Commitment existing at the expiration of the Inspection Period
shall be deemed accepted by Buyer and included as the “Permitted Exceptions”. If Buyer timely notifies Seller
in writing of any such Objectionable Title Matters (such writing “Buyer’s Title Notice”), Seller, in Seller’s
sole discretion, may, but shall have no obligation to, remove or cure such Objectionable Title Matters on or prior to the applicable
Closing. Seller shall be deemed to have given notice to Buyer that Seller refuses to cure any such Objectionable Title Matters,
which Seller may so do in its sole discretion, unless Seller, within five (5) business days after receipt of Buyer’s Title
Notice, shall notify Buyer in writing (the “Seller’s Title Notice”) that Seller will either attempt or
refuse to cure such Objectionable Title Matters. If Seller’s Title Notice indicates that Seller refuses to cure said Objectionable
Title Matters (or if Seller is deemed to refuse to cure said Objectionable Title Matters), Buyer may (a) terminate this Agreement
prior to the expiration of the Inspection Period, in which event the Deposit shall be returned to Buyer, and neither party shall
have further rights or obligations pursuant to this Agreement, except as expressly provided herein; or (b) if Buyer fails to so
terminate, Buyer shall be deemed to have waived such Objectionable Title Matters and accept that title to the Property is subject
thereto, in which event there shall be no reduction in the Purchase Price. Notwithstanding the foregoing, Seller, at its cost,
shall be obligated to have removed of record (which, in the case of Monetary Liens which are not mortgages or deeds of trust, may
include having bonded off from record in accordance with the statutorily prescribed process governing the same in North Carolina),
or otherwise addressed to the reasonable satisfaction of the Title Insurer as set forth below, by the applicable Closing the following
(collectively, the “Monetary Liens”): all mortgages and deeds of trust against the Property, and all mechanics’
liens, judgment liens, tax liens, assessment liens or other liens affecting the Property (and Buyer shall be entitled to use the
proceeds of the Allocated Purchase Price at each respective Closing to effect the same to the extent Seller fails to do so). For
the avoidance of doubt, Buyer and Seller agree that the phrase "otherwise addressed to the reasonable satisfaction of the
Title Insurer" shall mean that while as a matter of practice, certain encumbrances may not be released of record at Closing
by the filing of a recordable release or cancellation instrument, such encumbrances shall be deemed "discharged" hereunder
if, at Closing, the Title Insurer does not take exception to such encumbrance and in connection therewith, makes payment to the
lienholder of a sum certain pursuant to a valid payoff letter from said lienholder. The applicable Closing may be extended by Seller
for a reasonable number of days, not to exceed the date which is five (5) business days prior to the expiration of any rate lock
or loan commitment period in connection with Buyer's financing of the Property (the “Loan Deadline”), if any, to accommodate
Seller’s obligations under this Section 1.02. To the extent any Loan Deadline has been established prior to the expiration
of the Inspection Period and thereafter promptly after establishing any Loan Deadline, Buyer shall notify Seller in writing of
the date of the Loan Deadline prior to the expiration of the Inspection Period (as defined herein).

 

    	 

    	 

    

 

Notwithstanding anything
contained herein to the contrary, if Seller fails to take any actions to cure a title matter which Seller is obligated to take
under this Section 1.02, or fails to cure any title objection that Seller indicates it would cure pursuant to this Section
1.02, the same shall constitute a default by Seller hereunder, and the default provisions of this Agreement shall apply.

 

1.03         Survey.
Within three (3) business days after the Effective Date, Seller shall furnish to Buyer copies of the existing survey(s) listed
on Schedule D attached hereto (collectively, the “Prior Survey”), and Buyer may obtain a current as-built
survey of each Real Property by a registered land surveyor (each a “New Survey”, and collectively, the “New
Surveys”).

 

Should the Prior Surveys
contain any encumbrances, encroachments or other survey matters which are not acceptable to Buyer in its reasonable discretion
(collectively “Prior Survey Matters”), Buyer shall, prior to the date that is ten (10) days prior to the expiration
of the Inspection Period (as defined herein), notify Seller of any such Prior Survey Matters are unacceptable. In addition, if
Buyer obtains a New Survey or New Surveys, should any New Survey contain any encumbrances, encroachments or other survey matters
which do not appear on the applicable Prior Survey and which are not acceptable to Buyer (collectively, “New Survey Matters”),
Buyer shall, on or prior to the date that is ten (10) days prior to the expiration of the Inspection Period (as defined herein),
notify Seller in writing of any such New Survey Matters (the “Buyer’s Survey Notice”). (The Prior Survey
Matters and the New Survey Matters are referred to collectively as “Survey Matters”). If Buyer does not obtain
any New Survey or if Buyer fails to so notify Seller of any Survey Matters during the time period as described above, all Survey
Matters shall be deemed accepted by Buyer. If Buyer timely notifies Seller in writing of such Survey Matters, Seller, in Seller’s
sole discretion, may, but shall have no obligation to, cure such Survey Matters on or prior to the applicable Closing. Seller shall
be deemed to have given notice to Buyer that Seller refuses to cure any such Survey Matters, which Seller may so do in its sole
discretion, unless Seller, within five (5) business days after receipt of Buyer’s Survey Notice, shall notify Buyer in writing
(the “Seller’s Survey Notice”) that Seller will either attempt or refuse to cure such Survey Matters.
If Seller’s Survey Notice indicates that Seller refuses to cure said Survey Matters (or if Seller is deemed to refuse to
cure said Survey Matters), Buyer may (a) terminate this Agreement prior to the expiration of the Inspection Period, in which event
the Deposit shall be returned to Buyer, and neither party shall have further rights or obligations pursuant to this Agreement,
except as expressly provided herein; or (b) if Buyer fails to so terminate, Buyer shall be deemed to waive such Survey Matters
and accept title subject thereto, in which event there shall be no reduction in the Purchase Price.

 

    	 

    	 

    

 

1.04         Permitted
Exceptions. The following shall be deemed “Permitted Exceptions”: (i) the
exceptions to title existing on the date of the Commitment, the Prior Survey and/or the New Survey, and approved by Buyer in writing,
or deemed approved by Buyer, as provided in Sections 1.02 and 1.03 above; (ii) real property taxes and assessments which are a
lien but not yet payable; (iii) any title exceptions caused or expressly consented to or preapproved by Buyer in writing; (iv)
the rights of tenants under Leases, as tenants only, without any right of purchase; and (v) all applicable building, zoning and
use restrictions and/or regulations of any municipality, township, county or state. If Buyer does not elect to terminate this Agreement
in accordance with the provisions of Section 1.02 or Section 1.03, any Objectionable Title Matters or Survey Matters which Seller
refuses to cure shall be deemed “Permitted Exceptions”.

 

1.05         All
or None Transaction. Buyer acknowledges that this is an “all or none” transaction and Buyer has no right to terminate
the Agreement pursuant to this Section 1 as to any individual Real Property or Real Properties; provided, however, in no event
shall the "all or none" concept operate to grant Seller any repurchase right or call option with regard to the Phase
I Land, following Buyer's acquisition thereof, to the extent Buyer fails to close on the Phase II Land, regardless of the reason
therefore.

 

1.06         Construction
of Improvements on Phase II Land. Seller has commenced, and, from and after the Effective Date, Seller shall pursue to completion
with reasonable diligence, the construction of Improvements on the Phase II Land (the “Phase II Improvements”)
pursuant to and in accordance with those certain plans entitled “127 W. Park Avenue Apartments”, prepared by Narmour
Wright Architecture, and dated June 14, 2014, as the same may be amended pursuant to the immediately succeeding sentence (the “Phase
II Plans”), a copy of which has been delivered to Buyer. Any material deviations and/or changes to the Phase II Plans
(a “Change Order”) shall be subject to Buyer’s approval, such approval not to be unreasonably withheld,
conditioned or delayed. A Change Order shall be deemed “material” if it results in an increase or decrease in the total
cost of the Phase II Improvements by an amount greater than Ten Thousand and No/100 Dollars ($10,000.00). If Buyer does not respond
to a request from Seller to approve a Change Order within two (2) business days, the applicable Change Order shall be deemed approved
by Buyer. Seller’s construction of the Phase II Improvements shall be performed in a good and workmanlike manner and in accordance
with any and all applicable laws. The date that Seller delivers to Buyer a final certificate of occupancy for the Phase II Improvements
from the applicable governmental authority is hereinafter referred to as the “C.O. Procurement Date.” Buyer
shall have ten (10) business days after the C.O. Procurement Date to walk through and inspect the Phase II Improvements with Seller’s
representatives and either (i) approve and accept the Phase II Improvements on an “as is” basis, or (ii) provide Seller
with a written detailed list of all reasonable items required that Buyer believes are Seller’s obligation to cure in order
for the Phase II Improvements to be consistent with the Phase II Plans (the “Punch List”). If Buyer does not
deliver Seller the Punch List within ten (10) business days following the C.O. Procurement Date, then it will be conclusively deemed
as though Buyer has accepted the Phase II Improvements on an “as is” basis, subject to Seller's Representations (as
hereinafter defined).

 

Seller covenants and agrees
to proceed to promptly cure or correct such Punch List items prior to Closing. If any Punch List items have not been cured or corrected
prior to Closing: (i) Seller, Buyer and the Escrow Agent shall execute and deliver a Punch List Escrow Agreement (the “Punchlist
Escrow Agreement”) in the form set forth on Schedule 1.06 attached hereto; and (ii) Seller shall escrow with
the Title Company an amount equal to 150% of the estimated cost of completing the Punchlist Items as reasonably determined by the
Architect, Seller and Buyer (the “Escrowed Funds”), to be held and disbursed by the Escrow Agent in accordance
with the provisions of the Punchlist Escrow Agreement.

 

    	 

    	 

    

  

1.07      Pre-Closing
“Gap” Title/Survey Defects. Whether or not Buyer shall have furnished to Seller any notice of title objections
pursuant to the foregoing provisions of this Agreement, Buyer may, at or prior to Closing, notify Seller in writing of any objections
to title or survey matters having a material effect on the operation or value of the Property and first appearing of record (as
to title matters) or first arising (as to survey matters) between (a) the effective date of the Commitment or the last date of
field work for the New Survey and (b) the Closing Date; provided, however, that Buyer must notify Seller of any such objections
within ten (10) business days of Buyer’s first receipt of an updated Commitment, updated survey or other document, whichever
first provides notice of the condition giving rise to any such objection. With respect to any objections to title or survey matters
set forth in such notice, except for objections arising or resulting from Seller’s breach of the covenant contained in Section
1.08 hereof, Seller shall have the same option to cure and Buyer shall have the same option to accept title subject to such matters
or to terminate this Agreement as those which apply to any notice of objections made by Buyer pursuant to Sections 1.02 and 1.03
of this Agreement.

 

1.08         Seller’s
Covenant Not to Encumber. Seller agrees that, between the Effective Date and the earlier of the
Closing Date or the date this Agreement is otherwise terminated, Seller will not sell, assign, rent, convey (absolutely or as security),
grant a security interest in, or otherwise encumber or dispose of, or enter into any agreements that contemplate any of the aforementioned,
the Property (or any part thereof or estate therein) in any manner that will survive Closing, except as approved in writing by
Buyer, such approval not to be unreasonably withheld, conditioned, or delayed, or as expressly provided in this Agreement, including
without limitation Seller’s right to record the Access Easement (as defined herein).

 

SECTION
2

 

PURCHASE
PRICE, ACCEPTABLE FUNDS,

DEPOSIT AND ESCROW OF DEPOSIT

 

2.01         Purchase
Price. The purchase price (“Purchase Price”) to be paid by Buyer to Seller for the Property is Thirty One
Million Two Hundred Fifty Thousand and No/100 Dollars ($31,250,000.00) subject to the prorations and adjustments as hereinafter
provided in this Agreement. Seller and Buyer agree to allocate the Purchase Price among the Real Properties as set forth on Schedule
A attached hereto (the “Allocated Purchase Price” for each Real Property) and also agree that the Allocated
Purchase Price for each Real Property shall be the basis for the calculation of the closing expenses to be paid by the parties,
as described in Sections 9.02 and 10.07.

 

2.02         Payment
of Monies. All monies payable under this Agreement, unless otherwise specified in this Agreement, shall be paid by wire transfer.
The provisions of this Section 2.02 shall survive any termination of this Agreement.

 

2.03         Payment
of Purchase Price. The Purchase Price, subject to prorations and adjustments, shall be paid as follows:

 

(a)          Buyer
shall deposit an amount equal to Three Hundred Fifty Thousand and No/100 Dollars ($350,000.00) with Chicago Title Insurance Company
(200 South Tryon Street, Suite 800, Charlotte, NC 28202, Attn: Scott Mansfield) (hereinafter referred to as the “Escrow
Agent”) within two (2) business days after the Effective Date (the “Initial Deposit”);

 

(b)          
Buyer shall deposit an additional amount equal to One Hundred Fifty Thousand and No/100 Dollars ($150,000.00) with the Escrow Agent
within two (2) business days after the delivery of the Acceptance Notice as an additional deposit if Buyer does not elect to terminate
this Agreement pursuant to Sections 1.02, 1.03, or 6.02 hereof (the “Additional Deposit”);

 

    	 

    	 

    

  

(c)          Buyer
shall deposit an additional amount equal to Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00) with Escrow Agent on the
Phase I Closing Date (the “Final Deposit”, and, together with the Initial Deposit, the Additional Deposit, the
Extension Deposit (as defined below), if applicable, and any and all interest accrued thereon, the “Deposit”).
The Deposit shall be non-refundable to Buyer except as expressly set forth in this Agreement; and

 

(d)          Payment
at Closing. At the consummation of the transactions contemplated hereby for each Real Property (each a “Closing”),
Buyer shall deliver to Escrow Agent cash in an amount equal to the Allocated Purchase Price less the amount of the Allocated Portion
of the Deposit held by the Escrow Agent and subject to adjustments and apportionments as set forth herein shall be applied to the
Purchase Price. The applicable portion of the Purchase Price, as adjusted, shall be paid at each Closing by wire transfer of immediately
available federal funds, transferred to the order or account of Seller or such other person as Seller may designate in writing.
At each Closing, for purposes of the Settlement Statements (as defined below), the Deposit shall be allocated among the Real Properties
as set forth on Schedule A (the “Allocated Portion of the Deposit”).

 

2.04         Escrow
Provisions. This Agreement shall constitute escrow instructions to Escrow Agent, which is hereby appointed and designated to
act as escrow agent and instructed to deliver, pursuant to the terms of this Agreement, the documents and funds to be deposited
into escrow as herein provided. By executing this Agreement, Escrow Agent hereby agrees (i) to act as escrow agent in accordance
with the terms and provisions of this Agreement, and (ii) to execute the attached Initial Deposit Receipt, Additional Deposit Receipt,
Extension Deposit Receipt, if applicable, and the Final Deposit Receipt, to acknowledge receipt by Escrow Agent of the Initial
Deposit, the Additional Deposit, the Extension Deposit, if applicable, and the Final Deposit paid by Buyer to be applied to the
Purchase Price of the Property under the terms hereof. Escrow Agent agrees to hold, keep and deliver said Deposit and all other
sums delivered to it pursuant hereto in accordance with the terms and provisions of this Agreement. Upon receipt from Buyer of
the Deposit, Escrow Agent shall invest the Deposit in an interest-bearing account or money market fund acceptable to Buyer and
Seller. At the applicable Closing, Escrow Agent shall release the allocated portion of the Deposit to Seller, which allocated portion
of the Deposit shall be credited against the balance of the Purchase Price owed by Buyer to Seller. Escrow Agent shall not be entitled
to any fees or compensation for its services in holding the Deposit hereunder. Escrow Agent shall be liable only to hold said sums
and deliver the same to the parties named herein in accordance with the provisions of this Agreement, it being expressly understood
that by acceptance of this Agreement Escrow Agent is acting in the capacity of a depository only and shall not be liable or responsible
to anyone for any damages, losses or expenses unless same shall have been caused by the gross negligence or willful malfeasance
of Escrow Agent. In the event of any disagreement between Buyer and Seller resulting in any adverse claims and demands being made
in connection with or for the monies involved herein or affected hereby, Escrow Agent shall be entitled to refuse to comply with
any such claims or demands so long as such disagreement may continue; and in so refusing Escrow Agent shall make no delivery or
other disposition of any of the monies then held by it under the terms of this Agreement, and in so doing Escrow Agent shall not
become liable to anyone for such refusal; and Escrow Agent shall be entitled to continue to refrain from acting until (a) the
rights of the adverse claimants shall have been finally adjudicated in a court of competent jurisdiction of the monies involved
herein or affected hereby, or (b) all differences shall have been adjusted by agreement between Seller and Buyer, and Escrow
Agent shall have been notified in writing of such agreement signed by the parties hereto. Escrow Agent shall not be required to
disburse any of the monies held by it under this Agreement unless in accordance with either a joint written instruction of Buyer
and Seller or an Escrow Demand from either Buyer or Seller in accordance with the provisions hereinafter. Upon receipt by Escrow
Agent from either Buyer or Seller (the “Notifying Party”) of any notice or request (the “Escrow Demand”)
to perform any act or disburse any portion of the monies held by Escrow Agent under the terms of this Agreement, Escrow Agent shall
give written notice to the other party (the “Notified Party”). Except as set forth below, if within five (5)
days after the giving of such notice, Escrow Agent does not receive any written objection to the Escrow Demand from the Notified
Party, Escrow Agent shall comply with the Escrow Demand. If Escrow Agent does receive written objection from the Notified Party
in a timely manner, Escrow Agent shall take no further action until the dispute between the parties has been resolved pursuant
to either clause (a) or (b) above. Further Escrow Agent shall have the right at all times to pay all sums held by it (i) to
the appropriate party under the terms hereof, or (ii) into any court of competent jurisdiction in [Confirm: Mecklenburg County,
North Carolina] after a dispute between or among the parties hereto has arisen, whereupon Escrow Agent’s obligations hereunder
shall terminate.

 

    	 

    	 

    

  

Notwithstanding the foregoing
to the contrary, in the event Buyer timely exercises Buyer’s right to terminate this Agreement pursuant to Section 6.02 hereof
prior to the expiration of the Inspection Period as evidenced by Buyer's failure to deliver the Acceptance Notice, or the delivery
of a termination notice, each as contemplated pursuant to Section 6.02, Escrow Agent shall disburse the Deposit to Buyer and Seller
shall not have any right to object thereto.

 

Seller and Buyer jointly
and severally agree to indemnify and hold harmless said Escrow Agent from any and all costs, damages and expenses, including reasonable
attorneys’ fees, that said Escrow Agent may incur in its compliance of and in good faith with the terms of this Agreement;
provided, however, this indemnity shall not extend to any act of gross negligence or willful malfeasance on the part of the Escrow
Agent.

 

SECTION
3

CLOSING

 

3.01         Except
as otherwise provided in this Agreement, the Closing for the Phase I Real Property shall be conducted through an escrow administered
by Escrow Agent by means of concurrent delivery of the documents described in Sections 9 and 10 below and the applicable portion
of the Purchase Price on the date that is thirty (30) days after the Expiration of the Inspection Period (the “Phase I
Closing Date”), or such earlier date or place as Buyer and Seller shall mutually agree in writing; provided, however,
that Buyer shall have the right to extend the Phase I Closing Date for up to fifteen (15) days by giving written notice to Seller
no later than the date this five (5) business days prior to the scheduled Phase I Closing Date and delivering to Escrow Agent an
additional deposit in the sum of Fifty Thousand and No/100 Dollars ($50,000.00) (the “Extension Deposit”), which
amount shall become a part of the Deposit, and applied to the Allocated Purchase Price at the Closing for the Phase I Real Property.

 

Except as otherwise provided
in this Agreement, the Closing for the Phase II Real Property shall be conducted through an escrow administered by Escrow Agent
by means of concurrent delivery of the documents described in Sections 9 and 10 below and the Allocated Purchase Price for the
Phase II Real Property on the date that is thirty (30) days after the satisfaction of the Construction Conditions (as hereinafter
defined), but in no event later than December 31, 2015.

 

It is agreed that time
is of the essence of this Agreement. Buyer and Seller may jointly, but not separately, execute supplemental escrow instructions
as may be appropriate to enable Escrow Agent to comply with the terms of this Agreement, so long as such instructions are not in
conflict with this Agreement.

 

    	 

    	 

    

  

Seller and Buyer acknowledge
and agree that this is an “all or none” transaction with regard to the Real Properties.

 

3.02         Conditions
Precedent to Obligation of Buyer.

 

The obligation of Buyer to consummate the transaction
hereunder shall be subject to the fulfillment on or before the date of the applicable Closing (or such earlier time as otherwise
required hereby) of all of the following conditions, any or all of which may be waived by Buyer in its sole discretion:

 

		i.	All of the representations and warranties of Seller contained
in this Agreement shall be true and correct in all material respects as of the date of the applicable Closing, without regard
to any knowledge based qualifications.

 

		ii.	Seller shall have performed and observed, in all material
respects, all covenants and agreements of this Agreement to be performed and observed by Seller as of the date of Closing. For
purposes of this Section 3.02.ii., a failure to perform by Seller shall be deemed “material” if it (i) prevents Buyer’s
lender from issuing its loan for Buyer’s financing of the Property, and/or (ii) would cost more than $30,000.00 for Seller
to cure the same, as determined by Escrow Agent; provided that Seller credits Buyer at Closing for such amount.

 

		iii.	With regard to the Closing for the Phase I Real Property
only, Seller has obtained and delivered to Buyer all consents required to assign the Phase I Construction Contracts to Buyer in
accordance with their terms, as contemplated in Section 9.01(n).

 

		iv.	With regard to the Closing for the Phase II Real Property
only, Seller has obtained and delivered to Buyer all consents required to assign the Phase II Construction Contracts to Buyer
in accordance with their terms, as contemplated in Section 9.01(o).

 

		v.	With regard to the Closing for the Phase II Real Property
only, the Construction Conditions have been satisfied. As used herein, "Construction Conditions" shall mean the
following: [a] the Architect (as hereinafter defined) shall have issued a certificate of substantial completion with respect to
the Improvements upon the Phase II Land having been constructed in accordance with the Phase II Plans; [b] the aggregate estimated
cost of completing all Punch List (as hereinafter defined), is equal to or less than $150,000.00; [c] final certificates of occupancy
shall have been issued with respect to all of the Improvements upon the Phase II Land; and [d] Seller has delivered notice to
Buyer, along with evidence substantiating the same in accordance with [a] – [c] above, that the Construction Conditions
set forth in [a] – [c] have been satisfied.

 

		vi.	With regard to the Closing for the Phase II Real Property
only, Seller has obtained and delivered to Buyer a final as-built ALTA survey showing the location of the Improvements upon the
Phase II Land, completed in accordance with the Phase II Plans and compliant
with all applicable zoning requirements (the “Phase II As-Built Survey”). The cost and expense of the Phase
II As-Built Survey shall be shared equally by Buyer and Seller, as reflected on the settlement statement for the Phase II Closing.

 

    	 

    	 

    

  

		vii.	With regard to the Closing for the Phase II Real Property
only, Buyer has received an update to the Phase I Environmental Report that Buyer obtains during the Inspection Period confirming
that no environmentally recognized conditions have occurred upon the Phase II Land since the expiration of the Inspection Period.

 

In the event any of the foregoing conditions
has not been satisfied by the Closing of the applicable portion of the Property to which they apply and Seller fails to cure the
same within the earlier to occur of: (i) thirty (30) days after written notice from Buyer specifying which condition(s) have not
been satisfied, or (ii) the date which is two (2) business days prior to the expiration of any Loan Deadline, Buyer shall have
the right to terminate this Agreement by written notice given to Seller on the Closing Date, whereupon Escrow Agent shall promptly
refund the entire amount of the Deposit (or that portion thereof to the extent not otherwise applied to any Allocated Purchase
Price) to Buyer and the parties shall have no further rights, duties or obligations hereunder, other than those which are expressly
provided herein to survive the termination of this Agreement; provided, however, that if any of the foregoing conditions has not
been satisfied due to a default by Seller hereunder, then Buyer’s rights, remedies and obligations shall instead be determined
in accordance with Section 12. For the avoidance of doubt, the foregoing conditions are for the benefit of Buyer and may be waived,
in writing, in whole or in part, at Buyer's discretion.

 

SECTION
4

SELLER’S PRE-CLOSING DELIVERIES

 

Seller shall, in accordance
with the provisions of Section 6.01 hereof, furnish to Buyer, without representation or warranty except as expressly set forth
in Section 5.01 below, within three (3) business days after the Effective Date, for inspection and approval by Buyer the following,
but only to the extent it exists and is in the possession of Seller or its property manager:

 

4.01         Leases.
Access on-site to the originals (or copies to the extent originals are not available) or electronic versions of all leases for
units at each Real Property (the “Leases”) and related lease files.

 

4.02         Taxes.
A copy of 2014 (if available) real estate and personal property tax statements for each Real Property.

 

4.03         Rent
Rolls. Lists of the current rents now being collected on each of the apartment units in the Improvements which includes: apartment
number, unit type, tenant name, commencement and termination dates, lease rent and security deposits (each a “Rent Roll”
and collectively, the “Rent Rolls”), and a unit availability report and lease expiration report for each Real
Property.

 

4.04         Delinquency
Reports. Copies of the current tenant aged delinquency report for each Real Property.

 

4.05         Concession
Reports. Copies of the current concession report for each Real Property (each, a “Concession Report” and
collectively, the “Concession Reports”).

 

    	 

    	 

    

  

4.06         Occupancy
History. An occupancy history for each Real Property for 2014 (year-to date) (if available).

 

4.07         Service
Contracts. Copies of all service, maintenance, supply and management contracts affecting the use, ownership, maintenance and/or
operation of each Real Property listed on Schedules E attached hereto (the “Service Contracts”).

 

4.08         Personal
Property. Lists of all tangible personal property owned by the applicable Seller and located on or in or used solely in connection
with the applicable Real Property.

 

4.09         Utility
Bills. Copies of utility bills (gas, electric, water and sewer) relating to each Real Property for 2014 (year-to date) (if
available).

 

4.10         Operating
Statements. Copies of the operating statements (unaudited) for each Real Property (the “Operating Statements”)
for 2014 (if available) year to date in the form customarily used by the applicable Seller in the operation of the Property.

 

4.11         Permits.
Copies of any certificates of occupancy, warranties, guaranties, governmental permits, approvals and licenses relating to each
Real Property, together with a copy of any termite bond.

 

4.12         Plans
and Specifications. Copies of all site plans, surveys, soil and substrata reports and studies, engineering plans, architectural
renderings, plans and specifications, as-built plans and specifications, floor plans, landscape plans, utility schemes and other
similar plans, diagrams, if any, relating to each Real Property.

 

4.13         Environmental
Reports. Copies of those certain environmental reports listed on Schedule F attached hereto.

 

4.14         Insurance.
A certificate of insurance evidencing the insurance required to be maintained by Seller pursuant to Section 7.01 below for each
Real Property.

 

4.15         Loss-Run
History. A loss-run history for each Real Property for 2014 (year-to-date) (if available).

 

4.16         Capital
Improvements. A schedule of capital improvements and expenditures for each Real Property for 2014 (year-to date) (if available).

 

4.17         Staffing.
Copies of the current employee payroll (and related reports) for each Real Property (including employee names, positions, hire
dates, salaries, housing allowances, and commissions).

 

4.18         Litigation.
A list of all pending litigation or proceedings or litigation or proceedings threatened in writing (other than tenant collection
actions and tort claims covered by insurance) as described on Schedule G attached hereto.

 

4.19         Violations.
A list of outstanding written notices of violation received from applicable governmental authorities.

 

4.20         Marketing
Collateral. Copies of any site plans, unit floor plans, leasing brochure and amenities profile for each Real Property.

 

    	 

    	 

    

  

4.21         Standard
Lease Forms; Leasing Criteria. Copies of Seller’s standard lease forms (and addenda thereto), credit standards and credit
application for each Real Property.

 

4.22         Operations
and Maintenance Plans. A copy of any current operation and maintenance plan with respect to Mold for each Real Property.

 

4.23         Bank
Statements and Bank Deposit Summaries. Copies of Bank Statements and Bank Deposits Summaries for the previous two (2) months
for each Real Property.

 

4.24         Locator
Fees, Commissions. A schedule listing any current locator fees, leasing or brokerage commissions, as set forth on Schedule
H attached hereto.

 

4.25         Other
Items. Those items listed in Schedule 4.25 attached hereto and incorporated herein by reference, to the extent not otherwise
enumerated above.

 

If requested by Seller, Buyer shall provide
written verification of its receipt of those items listed in this Section 4.

 

Buyer shall also have reasonable
access to Seller’s management and leasing staff during the Inspection Period for interviews, which interviews shall be coordinated
by Seller, and Seller shall have the right to be present at any such interviews.

 

SECTION
5

REPRESENTATIONS AND WARRANTIES

 

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

 

(a)          Leases.   Seller
has not entered into any leases, subleases, licenses or other rental agreements or occupancy agreements (written or verbal) which
grant any possessory interest in and to any space situated on or in the Improvements or that otherwise give rights with regard
to use of the Improvements, other than the Leases set forth on the Rent Rolls. The Rent Rolls and Concession Reports provided
to Buyer pursuant to Section 4 hereof are the Rent Rolls and Concession Reports used by Seller in connection with the operation
of the Property, and such Rent Rolls and Concession Reports are, to Seller's knowledge, true, correct and complete in all material
respects. Except as otherwise shown on the Rent Rolls and the Concession Reports: (i) there are no other lease or rental agreements
for the occupancy for any of the units in the Improvements, (ii) no tenant is entitled to any free rent or similar concession,
(iii) no tenant has prepaid rent for more than one month in advance, (iv) there are no security deposits, and (v) there are no
leasing, locator or other fees or commissions due, nor will any become due, in connection with any Lease or any renewal, extension
or expansion with respect to any Lease, except as otherwise disclosed on the Rent Rolls and except for locator fees/commissions
not exceeding $500.00 per unit which will become due in the course of Seller’s normal and customary operation of the Property,
and no understanding or agreement with any party exists as to payment of any leasing, locator or other fees or commissions regarding
future leases or the procuring of tenants, except for Seller’s normal and customary locator arrangements with third parties,
none of which provide for a fee/commission in excess of $500.00 per unit.

 

The originals or copies of
the Leases and the tenant lease files made available to Buyer in connection with Section 4 of this Agreement are complete and accurate
originals or copies, as applicable, of all of the Leases and the tenant lease files, and represent all such documents in Seller’s
(or its property manager's) possession and control. There are no written or oral promises, understandings or commitments between
Seller and any tenant under the Leases that would be binding on Buyer other than as set forth in such copies of the Leases and
the tenant lease files made available to Buyer to copy pursuant to Section 4 hereof

 

    	 

    	 

    

  

(b)          Equipment.
Seller owns and has good title to all Personal Property free and clear of any liens and encumbrances.

 

(c)          Operating
Statements. To Seller’s actual knowledge, the Operating Statements for the Property delivered to Buyer pursuant to Section
4 hereof are true, correct and complete in all material respects and fairly and accurately present the financial condition of Buyer,
and are the operating statements maintained by Seller and relied on by Seller for internal administration and accounting purposes;
provided, however, that Seller does not and will not represent or warrant that Buyer will be able to, or should be able to, operate
the Property according to and with similar results as shown in such operating statements.

 

(d)          Service
and Management Contracts. The Service Contracts set forth on Schedule E attached hereto and incorporated herein
constitute all of the service agreements and other contracts (other than the Leases and the Construction Contracts) which affect
the Property. To Seller’s knowledge, Seller is not in default with respect to any of its material obligations or liabilities
under any of the Service Contracts.

 

(e)          Ability
to Perform. Seller has full power to execute, deliver and carry out the terms and provisions of this Agreement and has taken
all necessary action to authorize the execution, delivery and performance of this Agreement, and this Agreement constitutes the
legal, valid and binding obligation of Seller enforceable in accordance with its terms. Except as expressly set forth in or contemplated
by Section 1.06 to this Agreement, no order, permission, consent, approval, license, authorization, registration or validation
of, or filing with, or exemption by, any governmental agency, commission, board or public authority is required to authorize, or
is required in connection with, the execution, delivery and performance of this Agreement by Seller or the taking by Seller of
any action contemplated by this Agreement.

 

(f)          Litigation.
Except as otherwise set forth on Schedule G attached hereto, there are no existing or pending litigation actions, or claims,
with respect to any aspect of the Property, nor, to Seller’s knowledge, have any such actions, suits, proceedings or claims
been threatened or asserted in writing, excluding in either case, eviction actions, other “small claims” actions, or
tort claims covered by insurance.

 

(g)          Rights
to Property. Seller has not granted to any third party any right or option to acquire the Property, or any part thereof (with
the exception of grants of leasehold interests without any right of purchase to tenants under leases described on the Rent Roll);

 

(h)          No
Violations. Except as otherwise set forth on Schedule I attached hereto, Seller has not received, with respect to the
Property, any written notice from any governmental agency of (i) any violation of building codes or zoning ordinances, subdivision
ordinances, watershed regulations, Hazardous Materials Laws or other governmental laws, regulations or orders, (ii) pending or
threatened condemnation proceedings (except for the potential future widening of South Tryon Street, which is reflected and accounted
for in the Phase II Plans), or (iii) any proceedings that could or would cause the change, redefinition, or other modification
of the zoning classification, or of other legal requirements applicable to the Property or any part thereof, or any property adjacent
to the Property, in any case that remain outstanding.

 

    	 

    	 

    

  

(g)          Notices.
Seller has not received written notice of any pending improvements (except for the potential future widening of South Tryon Street,
which is reflected and accounted for in the Phase II Plans), liens or special assessments or impositions or increases in assessed
valuations to be made against any of the Property by any governmental authority.

 

(h)          Not
Foreign. Seller is not a “foreign person” within the meaning of the Internal Revenue Code of 1986, as amended (hereinafter
the “Code”), Sections 1445 and 7701.

 

(i)          Bankruptcy.
No petition has been filed by or, to Seller’s actual knowledge, against Seller under the Federal Bankruptcy Code or any similar
laws, nor does Seller plan to file any such petition before Closing or within 90 days after Closing.

 

(j)          ERISA.
Seller is not an employee benefit plan subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
or Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), Seller’s assets do not
constitute “plan assets” within the meaning of the “plan asset regulations” (29 C.F.R. Section 2510.3-101),
and Seller’s disposition of the Property will not constitute or result in a non-exempt prohibited transaction under Section
406 of ERISA or Section 4975 of the Code.

 

(k)          OFAC
Compliance. Neither Seller nor, to Seller’s actual knowledge, any Person (defined below) who owns a direct or indirect
interest in Seller (collectively, a “Seller Party”) is now nor shall be at any time until the Closing under
this Agreement an individual, corporation, partnership, joint venture, association, joint stock company, trust, trustee, estate,
limited liability company, unincorporated organization, real estate investment trust, government or any agency or political subdivision
thereof, or any other form of entity (collectively, a “Person”) with whom a United States citizen, entity organized
under the laws of the United States or its territories or entity having its principal place of business within the United States
or any of its territories (collectively, a “U.S. Person”), including a United States Financial Institution as
defined in 31 U.S.C. 5312, as periodically amended (“Financial Institution”), is prohibited from transacting
business of the type contemplated by this Agreement, whether such prohibition arises under United States law, regulation, executive
orders and lists published by the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) (including
those executive orders and lists published by OFAC with respect to Persons that have been designated by executive order or by the
sanction regulations of OFAC as Persons with whom U.S. Persons may not transact business or must limit their interactions to types
approved by OFAC) or otherwise.

 

(l)          Anti-Money
Laundering. Neither Seller nor, to Seller’s actual knowledge, any Seller Party, nor, to Seller's knowledge any Person
providing funds to Seller in connection with the transaction contemplated hereby (i) is under investigation by any governmental
authority for, or has been charged with, or convicted of, money laundering, drug trafficking, terrorist related activities, any
crimes which in the United States would be predicate crimes to money laundering or any violation of any Anti-Money Laundering Laws
or any violation of any Anti-Corruption Laws; (ii) has been assessed civil or criminal penalties under any Anti-Money Laundering
Laws or under any Anti-Corruption Laws; or (iii) has had any of its funds seized or forfeited in any action under any Anti Money
Laundering Laws or any Anti-Corruption Laws.

 

    	 

    	 

    

 

For purposes of this subsection, the term “Anti-Money
Laundering Laws” shall mean laws, regulations and sanctions, state and federal, criminal and civil, that (1) limit
the use of and/or seek the forfeiture of proceeds from illegal transaction; (2) limit commercial transactions with designated countries
or individuals believed to be terrorists, narcotics dealers or otherwise engaged in activities contrary to the interests of the
United States; (3) require identification and documentation of the parties with whom a Financial Institution conducts business;
or (4) are designed to disrupt the flow of funds to terrorist organizations.  Such laws, regulations and sanctions shall be
deemed to include the USA PATRIOT Act of 2001, Pub. L. No. 107-56, the Bank Secrecy Act, 31 U.S.C. Section 5311 et. seq., the Trading
with the Enemy Act, 50 U.S.C. App. Section 1 et. seq., the International Emergency Economic Powers Act, 50 U.S.C. Section 1701
et. seq., the Money Laundering Control Act of 1986 and the sanction regulations promulgated pursuant thereto by the OFAC, as well
as laws relating to prevention and detection of money laundering in 18 U.S.C. Section 1956 and 1957.  For purposes of this
subsection, the term “Anti-Corruption Laws” shall mean any anti-corruption laws of any applicable jurisdiction including
the U.S. Foreign Corrupt Practices Act, 15 U.S.C. Section 78dd-1, et seq.

 

As used in this Agreement,
or in any other agreement, document, certificate or instrument delivered by Seller to Buyer, the phrase “to the knowledge
of Seller”, “to Seller’s knowledge”, “to the best of Seller’s knowledge” or any similar
phrase shall mean the actual, not constructive or imputed, knowledge of Jamie McLawhorn, George Warren, and Justin Little, without
any obligation on his or her part to make any independent investigation of the matters being represented and warranted, or to make
any inquiry of any other persons (other than a duty to inquire of the on-site property manager), or to search or examine any files,
records, books, correspondence and the like. Seller hereby represents that Jamie McLawhorn, George Warren, and Justin Little are
persons who, in the ordinary course of business, would be reasonably likely to have knowledge of the matters set forth in this
Section 5.01 and that there are no other persons in Seller's organization that have more comprehensive knowledge of the subject
matter being warranted hereunder than Jamie McLawhorn, George Warren, and Justin Little.

 

If, after the date of this
Agreement and on or prior to applicable Closing, Seller first obtains knowledge or first receives notice of a fact, matter or circumstance,
which fact, matter or circumstance is not attributable to any action or inaction of Seller or its agents or representatives, which
causes any of Seller’s representations or warranties made in this Section to be inaccurate, then Seller shall disclose to
Buyer any such inaccuracy in good faith and as soon as possible.

 

Buyer agrees to notify
Seller promptly in writing if Buyer discovers, believes or obtains actual knowledge (which, for purposes of this paragraph and
the two paragraphs immediately following, shall mean the current actual knowledge of James Babb and Mike Konig, without duty of
investigation or inquiry) that: (i) there has been a breach of Seller’s representations and warranties set forth in this
Section 5.01 or (ii) any representation or warranty of Seller set forth in this Section 5.01 is inaccurate in any material respect.
Buyer hereby represents that James Babb and Mike Konig are the persons who, in the ordinary course of business, would be reasonably
likely to have knowledge of any breach of Seller’s representations and warranties set forth in this Section 5.01.

 

Buyer hereby waives any
right Buyer may have to commence any action(s) to enforce any alleged breach and/or violation of any representations of Seller
as set forth in this Agreement or to seek damages in connection therewith in the event that Buyer obtains actual knowledge of any
such alleged breach and/or violation prior to the applicable Closing and consummates the Closing.

 

If Buyer notifies Seller
prior to applicable Closing or if Seller’s Representation Certificate (as defined below) indicates that any representation
or warranty made in this Section 5.01 is not true and correct in any material respect (other than changes: (i) expressly permitted
by this Agreement including, without limitation, pursuant to Section 8, (ii) intentionally omitted; or (iii) as otherwise disclosed
to and approved, in writing, by Buyer) and Seller fails to cure or remedy the same prior to the applicable Closing, Buyer may either
(a) terminate this Agreement and the Deposit shall be returned to Buyer, and neither party shall have further rights or obligations
pursuant to this Agreement, except as expressly provided herein; or (b) waive any such representation or warranty and close the
transaction without any reduction in the Purchase Price, provided, however, if Buyer obtains actual knowledge of any such alleged
breach and/or violation prior to the expiration of the Inspection Period and does not elect to terminate this Agreement prior to
the expiration of the Inspection Period, Buyer shall be deemed to have waived any right Buyer may have to terminate this Agreement
with respect to such alleged breach and/or violation. The untruth of a representation and warranty shall be deemed material only
if Buyer’s aggregate damages resulting from the untruth of any representation or warranty is reasonably estimated to exceed
$25,000.00. For the avoidance of doubt, the terms of this paragraph, and the two immediately prior, shall not operate to excuse
Seller from liability hereunder if Seller knowingly and intentionally breaches any representation or warranty when such representations
and warranties are made as of the Effective Date or the Closing Date in Seller's Representation Certificate.

 

    	 

    	 

    

 

Notwithstanding anything
in this Agreement to the contrary, Seller hereby discloses to Buyer the following conditions with respect to the Property, all
of which have been discovered as a result of Seller’s own investigations and inquiries, rather than any written notifications
from applicable governmental authorities: (x) any and all matters referenced in that certain Notice of No Further Action dated
December 3, 2014, a copy of which has been delivered to Buyer; (y) potential non-compliance with the Federal Fair Housing Act as
to certain units comprising the Phase I Real Property; and (z) a trace groundwater contaminant from an off-site source.

 

5.02         Representations
and Warranties of Buyer. Buyer represents and warrants to Seller:

 

(a)          Ability
to Perform. Buyer has full power to execute, deliver and carry out the terms and provisions of this Agreement and has taken
all necessary action to authorize the execution, delivery and performance of this Agreement, and this Agreement constitutes the
legal, valid and binding obligation of Buyer enforceable in accordance with its terms. Except as set forth in this Agreement, to
Buyer's knowledge, no order, permission, consent, approval, license, authorization, registration or validation of, or filing with,
or exemption by, any governmental agency, commission, board or public authority is required to authorize, or is required in connection
with, the execution, delivery and performance of this Agreement by Buyer or the taking by Buyer of any action contemplated by this
Agreement.

 

(b)          Bankruptcy.
No petition has been filed by or, to Buyer’s actual knowledge, against Buyer under the Federal Bankruptcy Code or any similar
laws, nor does Buyer plan to file any such petition before Closing or within 90 days after Closing.

 

(c)          ERISA.
Buyer is not an employee benefit plan subject to ERISA, or Section 4975 of the Code, Buyer’s assets do not constitute “plan
assets” within the meaning of the “plan asset regulations” (29 C.F.R. Section 2510.3-101), and Buyer’s
acquisition of the Property will not constitute or result in a non-exempt prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code.

 

(d)          OFAC
Compliance. Neither Buyer nor, to Buyer’s actual knowledge, any Person (defined below) who owns a direct or indirect
interest in Buyer (collectively, a “Buyer Party”) is now nor shall be at any time until the Closing under this
Agreement a Person with whom a U.S. Person, including a Financial Institution, is prohibited from transacting business of the type
contemplated by this Agreement, whether such prohibition arises under United States law, regulation, executive orders and lists
published by OFAC (including those executive orders and lists published by OFAC with respect to Persons that have been designated
by executive order or by the sanction regulations of OFAC as Persons with whom U.S. Persons may not transact business or must limit
their interactions to types approved by OFAC) or otherwise.

 

    	 

    	 

    

 

(e)          Anti-Money
Laundering. Neither Buyer nor, to Buyer’s actual knowledge, any Buyer Party, nor, to Buyer's knowledge any Person providing
funds to Buyer in connection with the transaction contemplated hereby (i) is under investigation by any governmental authority
for, or has been charged with, or convicted of, money laundering, drug trafficking, terrorist related activities, any crimes which
in the United States would be predicate crimes to money laundering or any violation of any Anti-Money Laundering Laws or any violation
of any Anti-Corruption Laws; (ii) has been assessed civil or criminal penalties under any Anti-Money Laundering Laws or under any
Anti-Corruption Laws; or (iii) has had any of its funds seized or forfeited in any action under any Anti Money Laundering Laws
or any Anti-Corruption Laws.

 

5.03         Survival.
The provisions of this Section 5 shall survive the applicable Closing or, if the Closing does not occur, the termination of this
Agreement for a period of six (6) months.

 

SECTION
6

INSPECTION PERIOD; ACCESS; PURCHASE “AS IS”

 

6.01         Inspections.
During the pendency of this Agreement, subject to the conditions hereof, Buyer, its agents, contractors, employees, prospective
lenders and investors or other representatives (collectively, the “Buyer Parties”), shall be entitled to enter
upon the Property, including all leased areas, upon reasonable prior notice to Seller, to perform inspections and tests of the
Real Properties, including surveys, environmental studies, examinations and tests of all structural and mechanical systems within
the Improvements, and to examine the books and records of Seller and Seller’s property manager relating to the Property.
Before entering upon any Real Property, Buyer shall obtain and maintain, and shall cause each of its contractors and agents to
maintain (and shall deliver to Seller evidence thereof), at Buyer’s sole cost and expense, general liability insurance, from
an insurer reasonably acceptable to Seller, in the amount of Two Million and 00/100 Dollars ($2,000,000.00) combined single limit
for personal injury and property damage per occurrence, such policies to name Seller and Marsh Realty Company as additional insured
parties, which insurance shall provide coverage against any claim for personal liability or property damage caused by Buyer or
the Buyer Parties or their respective agents, employees or contractors, in connection with the Buyer’s entry, tests and inspections
upon any Real Property. Notwithstanding the foregoing, Buyer shall not be permitted to interfere unreasonably with Seller’s
operations at any Real Property or unreasonably interfere with any tenant’s occupancy at the Real Properties, and the scheduling
of any inspections shall take into account the timing and availability of access to tenants’ premises pursuant to tenants’
rights under the Leases or otherwise. If Buyer wishes to engage in any subsurface or intrusive environmental or physical testing
of any Real Property or any other testing which could damage or disturb any portion of any Real Property, Buyer shall obtain Seller’s
prior consent thereto, which may be granted, withheld or conditioned in Seller’s sole discretion. Without limiting the generality
of the foregoing, Seller’s written approval (which, notwithstanding the foregoing, may be granted, withheld or conditioned
in Seller’s sole discretion) shall be required prior to any testing or sampling of surface or subsurface soils, surface water,
groundwater or any materials in or about the Improvements in connection with Buyer’s environmental or structural due diligence.
In the event the need arises to notify under applicable law any federal, state or local public agencies of any environmental or
structural conditions at any Real Property as a result of Buyer’s due diligence investigations, Buyer agrees that Seller,
and not Buyer or Buyer Parties shall make such disclosure as Seller deems appropriate, unless such disclosure is required by law
to be made by Buyer or the Buyer Parties, in which instance Buyer or such Buyer Parties shall make such disclosure and Buyer shall
immediately notify Seller in writing. Buyer shall, immediately repair any damage to any Real Property caused by any such tests
or investigations or Buyer’s entry onto any Real Property and restore such Real Property to substantially the same condition
existing immediately prior to such tests or investigations to the extent of such damage. Buyer hereby agrees to indemnify, defend,
and hold Seller, its counsel, its sales agents, and each manager, member, partner, officer, director, employee, agent or attorney
of Seller, Marsh Realty Company, and Marsh Properties, LLC, and their respective agents, representatives and employees, free and
harmless from and against any and all costs, loss, liability, damages and expenses, of any kind or nature whatsoever (including
reasonable attorneys’ fees and costs actually incurred), to the extent arising out of damage to persons or property caused
by or arising out of or resulting from the entry and/or the conduct of activities upon any Real Property by Buyer or the Buyer
Parties in connection with Buyer’s due diligence investigations, provided, however, that the foregoing indemnity shall not
apply to the mere discovery of a pre-existing condition except to the extent such conditions were materially exacerbated due to
the acts or omissions of Buyer or any of the Buyer Parties. The foregoing obligations and indemnification shall survive Closing
or the termination of this Agreement.

 

    	 

    	 

    

  

6.02         Inspection
Period. The term “Inspection Period,” as used herein, shall mean the period commencing on the Effective Date and
ending at 5:00 p.m. on the date that is thirty (30) calendar days after the Effective Date. Unless Buyer so notifies Seller,
in writing, on or before the end of the Inspection Period of Buyer’s election to proceed with the transaction contemplated
under this Agreement, which Buyer shall have the right to do in Buyer's sole and absolute discretion, for any reason or no reason,
(the “Acceptance Notice”), this Agreement shall be canceled and terminated and the Initial Deposit shall be
returned immediately to Buyer and, except as otherwise provided in this Agreement, neither of the parties shall have any further
liability or obligation under this Agreement. For the avoidance of doubt, without limiting the efficacy of the automatic termination
set forth in the preceding sentence, Buyer shall also have the right to terminate this Agreement by providing written notice to
Seller of its election to so terminate on or before the expiration of the Inspection Period, whereupon the Initial Deposit shall
be returned to Buyer. Within two (2) business days of Buyer’s delivery of the Acceptance Notice, Buyer shall deposit with
Escrow Agent the Additional Deposit. To the extent Buyer delivers the Acceptance Notice, Buyer shall be deemed to have waived its
right to terminate hereunder and this Agreement shall continue in full force and effect. Buyer acknowledges that this is an “all
or none” transaction and Buyer has no right to terminate the Agreement as to any individual Real Property or Real Properties.

 

6.03         Waiver;
Release. EXCEPT FOR THE REPRESENTATIONS, WARRANTIES, COVENANTS AND INDEMNITIES EXPRESSLY SET FORTH IN THIS AGREEMENT AND IN
THE DOCUMENTS TO BE DELIVERED AT CLOSING (COLLECTIVELY, HEREINAFTER THE "SELLER'S REPRESENTATIONS"), IT IS UNDERSTOOD
AND AGREED THAT SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS
OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

BUYER ACKNOWLEDGES AND
AGREES THAT UPON CLOSING SELLER SHALL SELL AND CONVEY TO BUYER AND BUYER SHALL ACCEPT THE PROPERTY “AS IS, WHERE IS, WITH
ALL FAULTS”, SUBJECT TO SELLER'S REPRESENTATIONS. BUYER ALSO ACKNOWLEDGES THAT THE PURCHASE PRICE REFLECTS AND TAKES
INTO ACCOUNT THAT THE PROPERTY IS BEING SOLD “AS-IS”, SUBJECT TO SELLER'S REPRESENTATIONS. EXCEPT TO THE EXTENT OF
SELLER'S REPRESENTATIONS, BUYER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED
WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY,
WITHOUT LIMITATION, ANY OFFERING MEMORANDUM DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED BY SELLER, THE MANAGERS
OF THE PROPERTY, OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN,
DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING.

 

    	 

    	 

    

 

BUYER REPRESENTS TO SELLER
THAT BUYER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO,
THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS BUYER DEEMS NECESSARY OR DESIRABLE TO SATISFY ITSELF AS TO THE CONDITION
OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES
ON OR DISCHARGED FROM THE PROPERTY, AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER
OR ITS AGENTS OR EMPLOYEES WITH RESPECT THERETO, OTHER THAN SELLER'S REPRESENTATIONS. UPON CLOSING, BUYER SHALL ASSUME THE RISK
THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY
NOT HAVE BEEN REVEALED BY BUYER’S INVESTIGATIONS, AND BUYER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND
RELEASED SELLER, SELLER’S AFFILIATED ENTITIES AND EACH OF THE RESPECTIVE MEMBERS, PARTNERS, OFFICERS, DIRECTORS, SHAREHOLDERS,
EMPLOYEES AND AGENTS OF SELLER AND SELLER’S AFFILIATED ENTITIES (COLLECTIVELY WITH SELLER AND SELLER’S AFFILIATED ENTITIES,
“SELLER PARTIES”) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION
IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES) OF ANY AND EVERY KIND OR
CHARACTER, KNOWN OR UNKNOWN, WHICH BUYER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER, SELLER’S AFFILIATED ENTITIES
AND SELLER PARTIES AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS,
VIOLATIONS OF ANY APPLICABLE LAWS AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY,
OTHER THAN PURSUANT TO SUCH REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER AS ARE EXPRESSLY SET FORTH IN THIS AGREEMENT.

 

THIS AGREEMENT, INCLUDING
SPECIFICALLY BUT WITHOUT LIMITATION THE PROVISIONS OF THIS SECTION 6.03 HAS BEEN EXTENSIVELY NEGOTIATED BY SELLER AND BUYER, AND
REFLECTS THE MUTUAL AGREEMENT OF SELLER AND BUYER. BUYER REPRESENTS AND WARRANTS THAT BUYER HAS BEEN REPRESENTED BY LEGAL COUNSEL
OF ITS CHOOSING HAVING EXPERIENCE AND KNOWLEDGE IN HANDLING COMMERCIAL REAL ESTATE TRANSACTIONS OF THE NATURE AND CHARACTER AS
CONTEMPLATED HEREIN, AND BUYER IS RELYING SOLELY ON THE ADVICE OF ITS LEGAL COUNSEL IN ENTERING INTO THIS AGREEMENT AND COMPLETING
THE TRANSACTION CONTEMPLATED HEREIN. THE PARTIES ACKNOWLEDGE THAT THE PARTIES AND THEIR RESPECTIVE LEGAL COUNSEL HAVE REVIEWED
AND REVISED THIS AGREEMENT AND THAT THE NORMAL RULE OF CONSTRUCTION TO THE EFFECT THAT ANY AMBIGUITIES ARE TO BE RESOLVED AGAINST
THE DRAFTING PARTY SHALL NOT BE EMPLOYED IN THE INTERPRETATION OF THIS AGREEMENT OR ANY AMENDMENTS OR EXHIBITS HERETO. BUYER FURTHER
ACKNOWLEDGES THAT BUYER IS AWARE THAT THE PROVISIONS OF THIS AGREEMENT, INCLUDING SPECIFICALLY BUT WITHOUT LIMITATION THE PROVISIONS
OF THIS SECTION 6.03, LIMIT, RESTRICT AND MAY FORECLOSE BUYER’S ABILITY TO PURSUE ANY REMEDY OR CAUSE OF ACTION AGAINST SELLER
IN CONNECTION WITH THIS TRANSACTION OR ANY MATTER AFFECTING THE PROPERTY, OTHER THAN SELLER'S REPRESENTATIONS.

 

    	 

    	 

    

 

Notwithstanding
the foregoing or any provision hereof to the contrary, the waiver and release set forth in THIS Section 6.03 by Buyer shall not
apply to any claim with respect to any fraudulent or PROVEN intentional misrepresentation by Seller.

 

FURTHER NOTWITHSTANDING
ANYTHING IN THE FOREGOING TO THE CONTRARY: (A) BUYER SHALL HAVE THE RIGHT TO DEFEND GOVERNMENT AND THIRD-PARTY CLAIMS BY ALLEGING
THAT SELLER (OR SOMEONE ACTING ON SELLER’S BEHALF), NOT BUYER, IS LIABLE FOR SUCH CLAIMS AND BUYER HAS NO OBLIGATION TO INDEMNIFY
SELLER FOR GOVERNMENTAL OR THIRD PARTY CLAIMS ASSERTED BEFORE OR AFTER THE CLOSING AS A RESULT OF ANY ACT OR OMISSION TAKEN OR
FAILED TO BE TAKEN BY OR ON SELLER’S BEHALF PRIOR TO THE CLOSING; AND (B) THE PROVISIONS SET FORTH IN SECTION
6.03 SHALL NOT APPLY TO THIRD-PARTY TORT CLAIMS RELATING TO THE PROPERTY AND OCCURRING DURING SELLER’S OWNERSHIP OF
THE PROPERTY. ADDITIONALLY, SELLER AND BUYER HEREBY ACKNOWLEDGE AND AGREE THAT (I) THE PROVISIONS SET FORTH IN SECTION
6.03 are NOT INTENDED TO BE AND SHALL NOT BE CONSTRUED AS A WAIVER OF SIMILAR CLAIMS AGAINST ANY OF SELLER’S PREDECESSORS-IN-TITLE
WITH RESPECT TO THE PROPERTY OR THE PROJECT (“PREDECESSORS”), OR ANY SUCH PREDECESSOR’S OFFICERS, MEMBERS,
MANAGERS, DIRECTORS, PARTNERS, EMPLOYEES, AGENTS OR CONTRACTORS, OR ANY OTHER PERSON ACTING ON BEHALF OF ANY SUCH PREDECESSORS,
AND (II) IF ANY THIRD PARTY, INCLUDING, WITHOUT LIMITATION, ANY GOVERNMENTAL ENTITY OR AGENCY, SHALL THREATEN OR FILE ANY CLAIM
OR ACTION FOR DAMAGES, CLEAN-UP, OR OTHERWISE, AGAINST BUYER OR ANY OF ITS AFFILIATES WITH RESPECT TO THE PROPERTY OR THE PROJECT
WITH RESPECT TO MATTERS OCCURING PRIOR TO CLOSING FOR WHICH SELLER HAS ANY LIABILITY OR RESPONSIBILITY, BUYER SHALL HAVE THE RIGHT
TO INTERPLEAD, CROSS CLAIM OR OTHERWISE BRING SELLER INTO SUCH SUIT OR ACTION TO ADDRESS THE CLAIMS OF SUCH THIRD PARTY.

 

THE PROVISIONS OF THIS
SECTION SHALL SURVIVE CLOSING OR ANY TERMINATION OF THIS AGREEMENT.

 

6.04         Hazardous
Materials. Except to the extent of Seller's Representations, and further subject to the final two (2) paragraphs of Section
6.03 above, Buyer waives any rights or claims it may have against Seller or any Seller Affiliates in connection with the presence
of, or any loss, cost or damage associated with, Hazardous Materials (as hereinafter defined) in, on, above or beneath any Real
Property or emanating therefrom, except as expressly provided in this Agreement. Except to the extent of Seller's Representations,
and further subject to the final two (2) paragraphs of Section 6.03 above, if at any time after the applicable Closing, any third
party or any governmental agency seeks to hold Buyer responsible for any loss, cost or damage arising from any Hazardous Materials
in, on, above or beneath any Real Property or for the violation of any Hazardous Materials Laws (as hereinafter defined), Buyer
agrees that it shall not have the right to (a) implead Seller, (b) bring a contribution action or similar action against
Seller, or (c) otherwise seek to hold Seller responsible with respect to such preexisting matter. As used herein, “Hazardous
Materials” shall mean and include, but shall not be limited to any petroleum product, all hazardous or toxic substances,
wastes or substances and any substances or organisms (including any mold or fungi) which because of their quantitated concentration,
chemical, or active, flammable, explosive, infectious or other characteristics, constitute or may reasonably be expected to constitute
or contribute to a danger or hazard to the health, safety or welfare of the general public or of any occupants of the Improvements
or to the environment, including, without limitation, any hazardous or toxic waste or substances which are included under or regulated
by any applicable law or regulation (whether now existing or hereafter enacted or promulgated, as they may be amended from time
to time) including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended
(“CERCLA”), 42 U.S.C. §9601 et seq.; the Toxic Substance Control Act (“TSCAS”),
15 U.S.C. §2601 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. §1802; the Resource
Conservation and Recovery Act (“RCRA”), 42 U.S.C. §9601, et seq.; the Clean Water Act
(“CWA”), 33 U.S.C. §1251 et seq.; the Safe Drinking Water Act, 42 U.S.C. §300f
et seq.; the Clean Air Act (“CAA”), 42 U.S.C. §7401 et seq., the Federal
Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq., similar state laws and regulations adopted thereunder
(collectively, “Hazardous Materials Laws”). The provisions of this Section shall survive the applicable Closing
or any termination of this Agreement.

 

    	 

    	 

    

 

6.05         No
Representation. Seller has provided to Buyer certain information regarding the Real Properties relating to certain periods
of time in which Seller owned the Real Properties including, without limitation, certain historical financial information relating
to the Real Properties and the items set forth in Section 4 of this Agreement. Except to the extent of Seller's Representations,
Seller and Buyer hereby acknowledge that Seller makes no representation or warranty that (i) such material is complete or accurate;
or (ii) Buyer will achieve similar financial or other results with respect to the operations of the Real Properties, it being acknowledged
by Buyer that Seller’s operation of the Real Properties and allocations of revenues or expenses may be vastly different than
Buyer may be able to attain. Buyer acknowledges that it is a sophisticated and experienced Buyer of real estate and further that
Buyer has relied upon its own investigation and inquiry with respect to the operation of the Real Properties and releases Seller
from any liability with respect to such information.

 

SECTION
7

 

INSURANCE

 

7.01         Maintenance
of Insurance. Until each Closing, Seller shall maintain its present insurance on the applicable Real Property, which insurance
in respect of fire and casualty shall be covered by a standard all-risk policy in the amounts as currently insured. Subject to
the provisions of Section 7.02, the risk of loss in and to the applicable Real Property shall remain vested in Seller until
the applicable Closing. Buyer will obtain its own insurance on the Real Properties at each Closing. A list of the insurance that
Seller maintains in connection with the ownership, operation and development of the Property is attached hereto as Schedule
7.01 and incorporated herein by reference.

 

7.02         Casualty
or Condemnation. If prior to the applicable Closing, the Improvements or any material portion thereof is damaged or destroyed
by fire or casualty, or any material portion of any Real Property is taken by eminent domain by any governmental entity, then Buyer
shall have the option, exercisable by written notice given to Seller on or prior to either (i) the date that is ten (10) days after
Buyer’s receipt of notice of such damage, destruction or taking (which notice shall be accompanied by an estimate of repair
and replacement costs or the amount of any condemnation award), or (ii) the originally scheduled Closing Date (provided, that if
the Closing Date is less than five (5) business days from the date that Buyer is notified of such casualty or condemnation, then
the Closing Date shall be extended for a period of five (5) business days to allow the Buyer the time to exercise its rights under
this Section 7.02), whichever is sooner, to terminate this Agreement in its entirety, in which event the Deposit shall be returned
to Buyer, and neither party shall have further rights or obligations pursuant to this Agreement, except as expressly provided herein.
If Buyer does not elect to so terminate this Agreement or if such damage, destruction, taking or threatened taking is not material,
Buyer shall proceed with the purchase of the Real Properties without reduction or offset of the Purchase Price, and in such case,
except to the extent Seller shall have previously restored or made payments in connection with the restoration the affected Real
Property to its condition prior to the occurrence of any such damage or destruction, Seller shall pay over or assign to Buyer all
amounts received or due from, and all claims against, any insurance company or governmental entity as a result of such destruction
or taking including without limitation all claims and awards for lost revenues for any period from and after the applicable Closing,
and Buyer shall be entitled to a credit against the Allocated Purchase Price for such affected Real Property equal to the deductible
amount, if applicable, under Seller’s insurance policy. For purposes of this Section 7.02, “material portion”
shall mean, with respect to any individual Real Property (i) in the case of damage or destruction by fire or casualty, a portion
of such Real Property having a replacement cost equal to or in excess of three percent (3%) of the Allocated Purchase Price; or
(ii) in the case of a taking, a portion of the Property for which the condemnation award is equal to or in excess of three percent
(3%) of the Allocated Purchase Price for such Real Property.

 

    	 

    	 

    

 

SECTION
8

 

SELLER’S OBLIGATIONS PRIOR TO CLOSING

 

Seller covenants the following
between the Effective Date and the applicable Closing:

 

8.01         Operations.
During the pendency of this Agreement, Seller shall carry on its business and activities relating to the Real Properties, including
leasing of the Real Properties, substantially in the same manner as it did before the Effective Date. Notwithstanding anything
to the contrary contained herein, Seller shall not be entitled to apply a Security Deposit due to a default by a tenant which either
(y) has been in existence for more than ninety (90) days prior to the Effective Date or (z) is less than thirty (30) days old.

 

Seller shall use reasonable
efforts to negotiate new leases for unrented apartment units in the Improvements and/or Lease renewals for rented apartment units
in the Improvements and shall maintain an advertising and marketing program for apartment units in the Improvements consistent
with Seller’s past practices at the Property. Except for amendments or Leases entered into pursuant to renewal notices mailed
prior to the execution of this Agreement, unless Buyer agrees otherwise in writing, any new leases or renewals of existing Leases
for such apartment units entered into by Seller after the Effective Date until the Closing or earlier termination of this Agreement
shall be on Seller’s standard apartment lease form for the Property, and shall be for terms of no less than six (6) months
and no more than thirteen (13) months. In all cases, Seller shall retain the discretion to set rent rates, concessions, to the
extent such concessions consist of one month of free rent or less, and which concession is "taken" up front and applied
towards the first month's rent and not amortized over the term of the lease (anything greater requiring Buyer's prior written consent),
and other terms of occupancy, provided Seller shall only enter into new leases or renewals in the ordinary course of business taking
into account Seller’s then-current good faith evaluation of market conditions and further provided, however, Seller shall
not lease units for amounts less than the amounts shown on Schedule 8.01 to this Agreement.

 

    	 

    	 

    

 

From and after the Closing Date on the Phase
I Real Property, Buyer shall have the right, but not the obligation to replace the leasing and marketing teams of Seller's property
manager with leasing and marketing teams with a third-party leasing and management company reasonably acceptable to Seller (the
“New Leasing/Management Company”). Seller acknowledges that the following third party management companies shall
constitute acceptable replacement teams for purposes of this Section 8.01: Bell Partners, Hawthorne Living and Greystar. In such
instance, Buyer shall assume exclusive responsibilities for leasing and marketing the Property (provided, however, Seller shall
continue to operate, develop and maintain the Property in all other respects pursuant to this Agreement) and shall indemnify, defend
and hold Seller harmless from any claims, liabilities, damages, losses, judgments, awards, settlements, costs and expenses including
but not limited to reasonable and actual attorney’s fees and court costs (collectively, “Claims”) to the extent
arising from or related to the action or inaction of the New Leasing/Management Company; provided, however, the foregoing indemnity
shall not apply to the extent any such Claims are caused by the negligence or willful and wrongful misconduct of Seller. Buyer
shall ensure that the New Leasing/Management Company uses commercially reasonable efforts to negotiate new leases for unrented
apartment units in the Phase II Real Property and shall maintain an advertising and marketing program for apartment units in the
Phase II Real Property comparable to Seller’s past practices at the Property. Unless Seller agrees otherwise in writing,
any new leases for apartment units within the Phase II Real Property after the Effective Date until the Phase II Closing or earlier
termination of this Agreement shall be on a standard apartment lease form for the Property that is comparable to Seller’s
current lease form, and shall be for terms of no less than six (6) months and no more than thirteen (13) months. In all cases,
Buyer shall retain the discretion to set rent rates, concessions, to the extent such concessions consist of one month of free rent
or less , and which concession is "taken" up front and applied towards the first month's rent and not amortized over
the term of the lease (anything greater requiring Seller’s prior written consent), and other terms of occupancy, provided
Buyer shall only enter into new leases in the ordinary course of business taking into account Buyer’s then-current good faith
evaluation of market conditions and further provided, however, Buyer shall not lease units for amounts less than the amounts shown
on Schedule 8.01 to this Agreement.

 

8.02         Continuation/Termination
of Service Contracts. Seller shall not modify or amend any Service Contract or enter into any new service contract for any
Real Property without the prior written consent of Buyer, which consent shall not be unreasonably withheld or delayed, unless such
contract is terminable without penalty by the then owner of the applicable Real Property upon not more than thirty (30) days’
notice and with no termination fee (or unless Seller pays any such termination fee), in which event no prior consent of Buyer shall
be required. Prior to the expiration of the Inspection Period, Buyer shall deliver notice to Seller of which Service Contracts
Buyer elects to cause Seller to terminate. Seller will provide a notice of termination for all Service Contracts that Buyer elects
to cause Seller to terminate, provided that such Service Contracts can be terminated in accordance with their terms without the
payment of a termination fee or penalty by Seller, unless Buyer agrees to pay any and all fees or penalties in connection with
such termination (the “Terminable Service Contracts”). Buyer shall assume at the applicable Closing (i) the
Terminable Service Contracts until such time as the termination of such Terminable Service Contracts by Seller shall become effective
(provided, however, Seller shall be responsible in such instances to pay any costs associated with such period following Closing),
(ii) all Service Contracts that cannot be terminated in accordance with their terms unless Buyer elects to cause Seller to terminate
the same and Buyer pays any and all fees or penalties in connection with such termination, and (iii) all Service Contracts that
Buyer has not notified Seller on or prior to the expiration of the Inspection Period to terminate. In any event, Seller will terminate,
at no cost to Buyer, all management agreements and all contracts described on Schedule E attached hereto as “National
and Regional Contracts.”

 

8.03         Replacement
of Personal Property. No material personal property included as part of the Property shall be removed from the Property unless
the same is replaced with substantially similar items of substantially similar quality prior to the applicable Closing.

 

8.04         Tax
Procedure. After the expiration of the Inspection Period, Seller shall not withdraw, settle or otherwise compromise any protest
or reduction proceeding affecting real estate taxes assessed against the Property for any fiscal period in which the Closing is
to occur or any subsequent fiscal period without the prior written consent of Buyer. Real estate tax refunds and credits received
after the Closing which are attributable (a) to any fiscal period prior to the fiscal tax year during which the Closing occurs
shall be paid to Seller, and (b) to the fiscal year during which the Closing occurs shall be apportioned between Seller and Buyer,
after deducting the expenses of collection thereof, based upon the relative time periods each owns the Property, which obligation
shall survive the applicable Closing.

 

    	 

    	 

    

 

8.05         Access.
Subject to the provisions of Section 6.01, Seller shall allow Buyer or Buyer’s representatives access to the Real Properties
during the pendency of this Agreement, the Leases and other documents required to be delivered under this Agreement, provided Buyer
agrees that the original Leases and all other original documents shall remain on-site at the Property.

 

8.06         Rent
Rolls. Seller shall deliver to Buyer updated Rent Rolls in anticipation of the applicable Closing for purposes of calculating
the prorations and adjustments pursuant to Section 11 below.

 

8.07         Rent
Ready Units. Between the Effective Date and Closing, Seller will cause vacant rental units at the applicable Real Property
(each a “Vacant Unit” and collectively the “Vacant Units”) to be “made ready”
for reletting and occupancy in accordance with Seller’s current standards and timetable for turning units over. Seller has
no obligation to have all of the Vacant Units “made ready” as of the applicable Closing Date, but only those Vacant
Units that would have been “made ready” in the ordinary course of business. If any Vacant Unit has been vacant for
more than ten (10) days prior to the Closing Date and such Vacant Unit is not in move-in condition as of the Closing Date (based
upon the condition of other apartments leased at the Property prior to the Closing Date), then Buyer shall receive a credit at
Closing in an amount equal to Five Hundred and No/100 Dollars ($500.00) for each such Vacant Unit.

 

8.08         No
Adverse Changes. Except as otherwise set forth in this Agreement, including without limitation Section 1.06, Seller will not
cause or permit any grading, excavation or material construction upon the Property or any material addition, alteration or removal
of any improvements, fixtures or equipment forming a part of the Property. Seller may, however, make repairs to or upon the Property
as appropriate in connection with the operation of the Property. Seller will not initiate or permit any zoning reclassification
of the Property or seek any variance under existing zoning ordinances applicable to the Property to use or permit the use of the
Property in such a manner which would result in such use becoming a nonconforming use under applicable zoning ordinances or other
governmental requirements. Seller will not impose any restrictive covenants, liens or encumbrances on the Property or execute or
file any subdivision plat affecting the Property nor permit such imposition, execution or filings by any other party which will
not be removed at the applicable Closing.

 

8.09         No
Marketing. Seller on behalf of itself, its agents, contractors and representatives agrees that during the term hereof, it will
not enter into any written agreement or letter of intent to sell the Property to any party other than Buyer.

 

8.10         Notice
of Adverse Action. Seller will advise Buyer promptly of any written notice or proceeding contemplated by Sections 5.01 (d)
and (f) herein.

 

SECTION
9

 

SELLER’S CLOSING OBLIGATIONS

 

9.01         Closing,
Deliveries and Obligations. At each Closing, Seller shall deliver the following to the Escrow Agent (or made available at the
Property as noted below):

 

    	 

    	 

    

 

(a)          Deed.
A special warranty deed for each Real Property in the applicable form attached hereto as Exhibit A (each a “Deed”
and collectively the “Deeds”), duly executed and acknowledged by the applicable Seller, which conveys the applicable
Real Property to Buyer, subject only to Permitted Exceptions applicable to such Real Property. To the extent the legal description
contained in the Deed differs from the legal description contained in the New Survey, Seller shall also deliver a quitclaim deed,
duly executed and acknowledged by Seller, which conveys the legal description contained in the New Survey.

 

(b)          Bill
of Sale. A bill of sale for each Real Property in the form attached hereto as Exhibit B, as executed by the applicable
Seller.

 

(c)          General
Assignment. A general assignment for each Real Property in the form attached as Exhibit C (the “Assignments”),
as executed by the applicable Seller.

 

(d)          Title
Affidavits. Such affidavits as the Title Insurer may reasonably require in order to omit from its title insurance policies
all exceptions, other than Permitted Exceptions, for (i) parties in possession other than under the rights to possession granted
under the applicable Leases; and (ii) mechanics’ liens, including an affidavit substantially similar to the form attached
as Schedule 9.01(d) attached hereto and incorporated herein by reference.

 

(e)          Notices
of Sales. Letters in the form attached as Exhibit D, executed by the applicable Seller, advising the tenants under the
Leases of the sale of the applicable Real Property to Buyer and directing that all rents and other payments thereafter becoming
due under the Leases be sent to Buyer or as Buyer may direct.

 

(f)          Non-Foreign
Affidavit. A certification with respect to compliance by the applicable Seller with the Foreign Investment and Real Property
Tax Act, IRC Section 1445(b)(2), as amended, in the form attached as Exhibit E.

 

(g)          Management
Agreement Termination. A termination of the existing management agreement for each Real Property, executed by the applicable
Seller and property manager, in the form attached as Exhibit F.

 

(h)          Information
for 1099-S Report Filing. The Information for Real Estate 1099-S Filing as Required by the Internal Revenue Service, in the
form attached hereto as Exhibit G.

 

(i)          Transfer
Tax Declaration. Any transfer tax declarations, if any, required to be filed in connection with the recording of the Deeds.

 

(j)          State
Law Disclosures. Such disclosures and/or certifications as may be required by applicable state and local law in connection
with the conveyance of any Real Property.

 

(k)          Property
Documents. At each Closing, Seller shall provide Buyer with the originals of all available documents, copies of which were
provided to Buyer pursuant to Section 4 hereof and shall also provide Buyer with all keys to the Property, together with all related
IDs, access codes, and passwords, alarm codes, and all telephone numbers and listings employed in connection with the Real Property
or the operations thereon, all to the extent owned and in the possession of Seller or Seller’s property manager. To the extent
in the possession of the applicable Seller or the applicable Seller’s property manager (and in all cases to be made available
at the Property): (i) originals (or copies to the extent originals are not available) of all Leases and Service Contracts, and
related documents; and (ii) originals (or copies to the extent originals are not available) of all certificates of occupancy, warranties,
guaranties, governmental permits, approvals and licenses issued for or with respect to the Property.

 

    	 

    	 

    

 

(l)          Settlement
Statement. A settlement statement for the transaction relating to each Real Property setting forth adjustments, prorations
and expenses provided for herein (each a Settlement Statement and collectively, the “Settlement Statements”),
executed by the applicable Seller.

 

(m)          Certification.
A written certification by Seller updating all representations and warranties of Seller set forth in Section 5.01 hereof (the “Seller’s
Representation Certificate”).

 

(n)          Assignment
of Phase I Construction Contracts. At only the Closing for the Phase I Real Property, an assignment of all of Seller’s
rights, interests and remedies in and to (i) that certain AIA Document A102-2007 between Seller, as Owner, and Carocon Corporation
as Contractor dated as of October 1, 2012, together with that certain AIA Document A201-2007, General Conditions of the Contract
for Construction which is a part thereof (collectively the “Phase I GMAX”), and (ii) that
certain agreement dated December 22, 2011, between Seller, as Owner, and LandDesign, Inc., respecting the provision of professional
engineering services in connection with the construction of the Improvements at the Property (the “Phase I Engineer’s
Contract”); and (iii) that certain Standard Form of Agreement for Architectural Services, dated January 10, 2012,
between Seller, as Owner, and Narmour Wright, as Architect (the “Phase I Architect’s Contract”). 
The GMAX, the Engineer’s Contract and the Architect’s Contract are hereinafter referred to as the “Phase
I Construction Contracts”). 

 

(o)          Assignment
of Phase II Construction Contracts. At only the Closing for the Phase II Real Property, an assignment of all of Seller’s
rights, interests and remedies in and to (i) that certain AIA Document A102-2007 between Seller, as Owner, and Carocon Corporation
as Contractor dated as of August 25, 2014, together with that certain AIA Document A201-2007, General Conditions of the Contract
for Construction which is a part thereof (collectively the “Phase II GMAX”), and (ii) that
certain agreement dated January 20, 2014, between Seller, as Owner, and LandDesign, Inc., respecting the provision of professional
engineering services in connection with the construction of the Improvements at the Property (the “Phase II Engineer’s
Contract”); and (iii) that certain Proposal of Architectural Services, dated February 25, 2014, between Seller, as
Owner, and Narmour Wright, as Architect (the “Phase II Architect’s Contract”).  The GMAX,
the Engineer’s Contract and the Architect’s Contract are hereinafter referred to as the “Phase II
Construction Contracts”, and, together with the Phase I Construction Contracts, collectively referred to herein
as the “Construction Contracts”).

 

(p)          Other
Documents. Any other documents reasonably required by the Escrow Agent to be delivered by Seller in order to consummate the
transaction expressly contemplated by this Agreement.

 

9.02         Seller’s
Expenses. At each Closing, Seller shall pay with respect to the applicable Real Property (i) its own counsel fees; (ii) one-half
of any escrow fees; (iii) any transfer tax, documentary stamp tax or excise tax due in connection with the conveyance of the Property;
(iv) all costs and expenses incurred in connection with the transfer of any transferrable permits, warranties or licenses in connection
with the ownership or operation of the Property and (v) those fees, costs and expenses customarily charged at closing to a seller
in accordance with the custom of the State of North Carolina.

 

9.03         Amounts
Due Under Construction Contracts. Seller shall cause all amounts due in connection with the Phase I Construction Contracts
to be paid in full on or prior to the Closing for the Phase I Real Property, and shall provide final lien waivers, in recordable
form, from any and all vendors and contractors who are parties to the Phase I Construction Contracts at the Closing for the Phase
I Real Property and who have performed work on, or provided materials with respect to, the Phase I Real

 

    	 

    	 

    

 

Property within the one hundred
and twenty (120) day period immediately preceding the Closing for the Phase I Real Property. Except for any retainage that is held
back by Seller pursuant to the terms of the Phase II Construction Contracts, Seller shall cause all amounts due in connection with
the Phase II Construction Contracts for the Phase II Real Property to be paid in full on or prior to the Closing for the Phase
II Real Property, and shall provide conditional lien waivers (which are contingent solely upon payment of the retainage owned after
the items set forth on the Punch List have been completed), in recordable form, from all vendors and contractors who are parties
to the Phase II Construction Contracts at the Closing for the Phase II Real Property. The terms of this Section 9.03 shall survive
each Closing.

 

SECTION
10

 

BUYER’S CLOSING OBLIGATIONS

 

At each Closing, Buyer
shall:

 

10.01         Payment
of Purchase Price. Deliver to the Escrow Agent the Allocated Purchase Price, as adjusted pursuant to the express provisions
this Agreement (including, without limitation, the apportionments under Sections 2.03 and 11).

 

10.02         Assignments.
Deliver to the Escrow Agent the Assignments, as executed by Buyer.

 

10.03         Transfer
Tax Declaration. Any transfer tax declarations, if any, required to be filed in connection with the recording of the Deeds.

 

10.04         State
Law Disclosures. Such disclosures and/or certifications as may be required by applicable state and local law in connection
with the conveyance of any Real Property.

 

10.05         Settlement
Statement.         Deliver to the Escrow Agent the Settlement Statements,
executed by Buyer.

 

10.06         Reciprocal
Easement Agreement. Deliver to Seller, for the benefit of the Phase II Property, an easement granting full and unrestricted
access, ingress, egress and regress in, over and to all driveways, parking areas/garages, walkways, alleyways, hallways, common
areas, landscaped areas, and amenities constructed or to be constructed upon the Phase I Real Property as well as for the construction
and finalization of the Improvements on the Phase II Real Property (the “Reciprocal Easement Agreement”). The
Reciprocal Easement Agreement shall automatically terminate upon Buyer’s acquisition of the Phase II Real Property. The form
of the Reciprocal Easement Agreement is attached hereto as Exhibit H.

 

10.07         Other
Documents. Deliver such other documents or instruments as shall reasonably be required by Escrow Agent to consummate the transaction
contemplated herein.

 

10.08         Buyer’s
Expenses. Buyer shall pay with respect to the applicable Real Property (i) its own counsel fees; (ii) one-half of any escrow
fees; (iii) the cost of any New Survey; (iv) the base premium for the Title Policy, together with the cost of any additional premiums
charged by the Title Insurer for the Title Policy, including, without limitation, the cost of any extended coverage and the cost
of any endorsements to the Title Policy requested by Buyer; (v) all costs and expenses associated with Buyer’s financing,
if any (provided such financing shall not be a condition to Closing), including, without limitation, all cost for the lender’s
title insurance policy and any mortgage tax; (vi) intentionally omitted; (vii) all costs and expenses with respect to termination
of Service Contracts which Buyer elects to terminate pursuant to Section 8.02 above; (viii) intentionally omitted; (ix) any recording
fees associated with recordation of the Deeds; and (x) those fees, costs and expenses customarily charged at closing to a buyer
in accordance with the custom of the State of North Carolina.

 

    	 

    	 

    

 

SECTION
11

 

APPORTIONMENTS AND ADJUSTMENTS TO PURCHASE PRICE

 

Seller and Buyer shall
cooperate to produce, prior to the applicable Closing Date, a schedule of prorations for each Real Property effective as of the
applicable Closing Date as complete and accurate as reasonably possible. Notwithstanding any terms herein to the contrary, for
purposes of calculating prorations, Buyer shall be deemed to be in title to the Property, and therefore entitled to the income
and responsible for the expenses, for the entire applicable Closing Date and thereafter, and Seller shall be entitled to the income
and responsible for the expenses for the period prior to the applicable Closing Date.

 

The following apportionments
shall be made between the parties at each Closing as of the close of the business day prior to the applicable Closing:

 

(a)          Buyer
shall receive from Seller a credit for any rent and other income under Leases collected by Seller before Closing that applies to
any period after Closing. Uncollected rent and other uncollected income shall not be prorated at Closing. After Closing, Buyer
shall apply all rent and income collected by Buyer from any tenant under Leases, first to Seller for any portion of such tenant’s
monthly rental that applies to the month of Closing, then to Buyer for the remainder of tenant’s monthly rental that applies
to the month of Closing, and last to arrearages in the reverse order in which they were due (i.e. for avoidance of doubt, arrearages
first coming due after Closing shall be paid first), remitting promptly to Seller any balance properly allocable to Seller’s
period of ownership. Buyer shall bill and use commercially reasonable efforts to collect such rent arrearages in the ordinary course
of business, but shall not be obligated to engage a collection agency or take legal action to collect any rent arrearages. Seller
shall be entitled to pursue rents and other income under Leases from prior tenants of the Property (i.e. to the extent no longer
in possession under Leases) properly payable to Seller, which pursuit may include, but shall not be limited to, filing a law suit
against such tenant, so long as such lawsuit does not seek a termination of the Lease or eviction of the tenant; provided, however,
in no event shall Seller be entitled to pursue rents from current tenants of the Property. Any rent or other income received by
Seller after Closing which are owed to Buyer shall be remitted to Buyer promptly after receipt for allocation and disbursement
as provided herein;

 

(b)          Refundable
security deposits and other refundable deposits: it is the intent of the parties that all refundable security deposits and other
refundable deposits made by current residents shown on the Rent Roll shall be transferred by Seller to Buyer at Closing. On the
Closing Date, Buyer shall in writing acknowledge receipt of and expressly assume all Seller’s financial and custodial obligations
with respect to all such security deposits, it being the intent and purpose of this provision that, at Closing, Seller will be
relieved of all fiduciary and custodial obligations with regard to current residents, and that Buyer will assume all such obligations
and be directly accountable to the residents of each Real Property with respect to all such security deposits to the extent assigned;

 

(c)          There
shall be no adjustment for wages, vacation pay, pension and welfare benefits and other fringe benefits of all persons employed
by Seller at the Property; it being the intent of the parties that simultaneously with the Closing, Seller shall terminate any
existing management agreement and Buyer shall have no liability or obligation with respect to any employee of Seller or its management
company prior to Closing (other than locator fees, leasing or brokerage commissions payable by Buyer pursuant to subparagraph (g)
below);

 

    	 

    	 

    

 

(d)          Real
estate taxes, personal property taxes, and assessments, if any, on the basis of the most recent billing period, as reflected on
the actual invoices/bills issued by the appropriate taxing authority;

 

(e)          Water,
sewer, electric, telephone and all other utility and fuel charges (to the extent possible, prorations will be handled by meter
readings on (or as near as possible to) the Closing Date, subject to adjustment after Closing on a per diem basis, when the next
reading is available). Any current deposits with utility companies shall remain the property of Seller and shall not be assigned
or credited at Closing;

 

(f)          Seller
shall receive a credit for prepayments paid by Seller under assigned Service Contracts and Buyer shall receive a credit for any
initial lump sum rental or bonus payments made by tenants or suppliers prorated over the term of the applicable agreement for such
occupancy or services for that portion thereof occurring on and after the Closing Date;

 

(g)          Buyer
shall be responsible for all locator fee, leasing or brokerage commissions for tenants who have executed a lease prior to the Closing
Date but do not move in and commence paying rent until after the Closing Date and Seller shall be responsible for all locator fee,
leasing or brokerage commissions for tenants who have executed a lease prior to the Closing Date and who move in prior to the Closing
Date;

 

(h)          The
cost of the Phase II As-Built Survey shall be shared equally by Buyer and Seller; and

 

(i)          All
other income and expenses with respect to the Property.

 

If the Closing shall occur
before the applicable tax bill is available (or before a new tax rate or new assessed valuation is fixed) for the fiscal period
in which Closing occurs, the apportionment of taxes at the Closing shall be upon the basis of the current tax rate and assessed
valuation, as applicable. Promptly after the tax bill for the fiscal period in which Closing occurs is available (or the new tax
rate or new assessed valuation is fixed), the apportionment of taxes shall be recomputed. Any discrepancy resulting from such recomputation
shall be promptly corrected. The obligations set forth in this paragraph shall survive until ninety (90) days after the tax bill
for such taxes which were prorated on the basis of an estimate are received by Buyer.

 

If any operating expenses
or other prorations (other than taxes and utility bill back pursuant to Section 11(e) above) cannot conclusively be determined
as of the Closing Date, then the same shall be adjusted at Closing based upon the most recently issued invoices/bills as of the
Closing Date and shall be re-adjusted within ninety (90) days after the Closing occurs. Any discrepancy resulting from such recomputation
and any errors or omissions in computing apportionments at Closing shall be promptly corrected. The obligations set forth in this
paragraph shall survive the Closing for a period of ninety (90) days.

 

SECTION
12

 

FAILURE TO PERFORM

 

12.01         Buyer’s
Election. If Seller is unable to satisfy all of Seller’s obligations as set forth in this Agreement in all material respects,
Buyer shall have the right to elect, in its sole discretion, at the applicable Closing, to accept such title as Seller can deliver
to the Property in its then condition and to pay therefor the Purchase Price without reduction or offset, in which case Seller
shall convey such title for such price.

 

    	 

    	 

    

 

12.02         Seller’s
Default. If at the applicable Closing, Seller is unable to satisfy all of Seller’s obligations as set forth in this Agreement
in all material respects and Buyer does not elect to take title as provided in Section 12.01, Seller shall be in default hereunder
and Buyer may elect, as Buyer’s sole and exclusive remedy, to either: (i) waive such default and proceed with the Closing
without reduction of the Purchase Price; (ii) terminate this Agreement and the Deposit shall be forthwith returned to Buyer, whereupon
Seller shall reimburse Buyer for Buyer's actual and documented third party out of pocket costs and expenses incurred in connection
with this Agreement not to exceed the sum of $25,000.00, and, to the extent Buyer has paid any rate lock or loan commitment fee
that is forfeited because the transaction contemplated hereunder failed to close due to Seller's default, the amount of any such
rate lock or loan commitment fee so forfeited not to exceed the sum of $400,000.00, whereupon neither party shall have further
rights or obligations pursuant to this Agreement, except as expressly provided herein; or (iii) compel specific performance by
Seller hereunder, in which event the Deposit shall be delivered to Seller at Closing and credited against the Purchase Price, provided,
however, that Buyer shall only be entitled to such remedy if (A) any such suit for specific performance is filed within ninety
(90) days after the then scheduled Closing Date, and (B) Buyer is not in default under this Agreement. Notwithstanding any of the
foregoing to the contrary, if Buyer is unsuccessful in compelling specific performance and Seller is determined by a court of competent
jurisdiction to have been in default of this Agreement, then Buyer may seek enforcement of any and all other remedies available
to it under applicable law for such default. For purposes of this Section 12.02, Seller shall be deemed to have satisfied its obligations
in all material respects so long as: (i) Buyer’s lender is not prevented from issuing its loan for Buyer’s financing
of the Property, and/or (ii) would cost to cure any failure by Seller to comply with its obligations hereunder does not exceed
$30,000.00, as determined by Escrow Agent; provided, however, that Seller shall credit Buyer at Closing the actual cost to cure
any failure by Seller to comply with its obligation hereunder that does not exceed $30,000.00.

 

12.03         Buyer’s
Default. If Buyer is unable to satisfy all of Buyer’s obligations as set forth in this Agreement in all material respects,
Buyer shall be in default hereunder and Seller shall, as its sole and exclusive remedy, declare this Agreement to be terminated,
whereupon Seller shall be entitled to immediately receive all of the Deposit as liquidated damages hereunder (and not as a penalty),
it being agreed between the parties hereto that the actual damages to Seller in the event of such breach are impractical to ascertain
and the amount of the Deposit is a reasonable estimate thereof, Seller hereby expressly waiving and relinquishing any and all other
remedies at law or in equity. Upon such termination, neither Buyer nor Seller shall have any further rights, obligations or liabilities
hereunder, except as otherwise provided herein. Notwithstanding the foregoing, nothing herein shall be deemed to limit Buyer’s
liability to Seller for the full amount of any damages arising out of or in connection with Buyer’s indemnification obligations
hereunder or for attorneys’ fees and costs as provided in Section 16.16 below.

 

Notwithstanding anything
to the contrary contained in this Section 12.03, if Buyer has not filed suit for specific performance within the time period
provided above and records a lis pendens or otherwise enjoins or restricts Seller’s ability to sell and transfer the Property
(a “Buyer’s Action”), Seller shall not be restricted by the provisions of this Section 12.03 from
bringing an action against Buyer seeking expungement or relief from any filed lis pendens, injunction or other restraint, and/or
recovering fees, costs and expenses (including attorneys’ fees) which Seller may suffer or incur as a result of any Buyer’s
action but only to the extent that Seller is the prevailing party; and the amount of any such fees, costs and expenses awarded
to Seller shall be in addition to the liquidated damages set forth herein.

 

    	 

    	 

    

 

12.04         Cure.
If either Buyer or Seller fails to perform any of their respective obligations under this Agreement (excluding the closing obligations
under Sections 9 and 10 hereof), the non-defaulting party shall give written notice to the defaulting party specifying such default
and, except as to defaults which occur as of the applicable Closing, the defaulting party shall not be in default under this Agreement
unless the defaulting party fails to cure such default within five (5) business days after the delivery by the non-defaulting party
of said written notice; provided, however, in no event shall the aforementioned cure period extend the Closing Date beyond the
date which is two (2) business days prior to the expiration of the Loan Deadline. Notwithstanding anything in the foregoing sentence
to the contrary, if either party is in default of their respective closing obligations under Sections 9 and 10 hereof, the non-defaulting
party shall not be required to deliver notice and the defaulting party shall not be entitled to a cure period with respect to a
default of any closing obligation under said Sections.

 

SECTION
13

 

BROKERAGE FEES

 

Seller and Buyer mutually
represent and warrant that Dean Smith of ARA Real Estate Investment Services (“Broker”) is the only broker with
whom they have dealt in connection with this purchase and sale and that neither Seller nor Buyer knows of other any broker who
has claimed or may have the right to claim a commission in connection with this purchase and sale. The commission of the Broker
shall be paid by Seller pursuant to a separate agreement, and to the extent of Closing, Seller shall be obligated to pay such commission
in accordance with such separate agreement. In any event, Buyer shall have no obligation to pay a brokerage commission to Broker.
Seller and Buyer shall indemnify and defend each other against any costs, claims or expenses, including attorneys’ fees,
arising out of the breach on their respective parts of any representations, warranties or agreements contained in this Section.
Buyer acknowledges and agrees that Broker is not authorized by Seller to make, and Broker has not at any time made, any representation
or warranty of any kind or character, express or implied, with respect to Seller or the Property. The representations and obligations
under this Section shall survive the applicable Closing or, if the Closing does not occur, the termination of this Agreement.

 

SECTION
14

 

NOTICES

 

14.01         Effective
Notices. All notices and/or notifications under this Agreement shall be in writing and shall be either: (i) delivered personally
(delivery to be deemed when so delivered); (ii) sent by Federal Express or other comparable overnight delivery courier (delivery
is deemed to be one (1) business day after deposit with such overnight courier); or (iii) sent by email (delivery to be deemed
when so sent), to Seller at 2448 Park Road, Charlotte, NC 28203, Attn: George Warren, Telephone No: 704.602.2061,email: gwarren@marshproperties.com,
and to Buyer at 712 Fifth Avenue, 9th Floor, New York, NY 10019, Attn: James G. Babb, Telephone No: 212.843.1601, email:
jbabb@bluerockre.com, and Mike Konig, Telephone No: 908.415.8869, email: mkonig@bluerockre.com. Notices delivered personally or
by email shall be deemed effective when so delivered. Copies of all such notices to Buyer shall be sent to Eric L. Wilensky, Nelson
Mullins Riley & Scanborough, LLP, 201 17th Street NW, Suite 1700, Atlanta, GA 30363, Telephone No.: 404.322.6469, email: eric.wilensky@nelsonmullins.com,
and copies of all such notices to Seller shall be sent to John R. Buben, Jr., Johnston Allison & Hord, P.A., 1065 E. Morehead
Street, Charlotte, NC 28204, Telephone No.: 704.998.2227, email: jbuben@jahlaw.com. Any notice required or permitted by
this Agreement may be given by counsel for the party giving notice in a form provided herein.

 

    	 

    	 

    

 

SECTION
15

 

LIMITATIONS ON SURVIVAL

 

15.01         Survival.
Except as otherwise expressly set forth in this Agreement, no representations, warranties, covenants, indemnities or other obligation
of Seller set forth in this Agreement shall survive the applicable Closing, and no action based thereon shall be commenced after
Closing. The representations, warranties, covenants, indemnities and other obligations of Seller which are expressly provided to
survive applicable Closing shall survive until six (6) months after the Closing (unless otherwise expressly set forth herein),
and no action based thereon may be commenced more than six (6) months after the Closing. If Buyer does not institute a lawsuit
therefore in a court of competent jurisdiction within six (6) months after the applicable Closing, Buyer shall be deemed to have
waived all of its rights to claim and sue for any breach by Seller of any of its representations, warranties, covenants, indemnities
or other obligations of Seller pursuant to this Agreement. Seller shall have no liability to Buyer after the applicable Closing
for any matter disclosed by Seller or learned by Buyer prior to said Closing. For avoidance of doubt, the phrase "shall survive
Closing" or other similar phrases shall be deemed to mean the Closing of the Phase I Real Property with respect to the representations,
warranties, covenants, indemnities or other obligations pertaining solely to the Phase I Real Property, and, to the extent it occurs,
the Closing of the Phase II Real Property with respect to the representations, warranties, covenants, indemnities or other obligations
pertaining solely to the Phase II Real Property.

 

15.02         Merger.
The delivery of the Deeds by Seller, and the acceptance and recording thereof by Buyer, shall be deemed the full performance and
discharge of each and every obligation on the part of Seller to be performed hereunder and shall be merged in the delivery and
acceptance of the Deeds, except as provided in Section 15.01 and except for such other obligations of Seller which are expressly
provided herein to survive the applicable Closing.

 

SECTION
16

 

MISCELLANEOUS PROVISIONS

 

16.01         Assignment.
Buyer shall be entitled to assign, in whole or in part, this Agreement and its rights hereunder to one or more corporations,
general partnerships, limited partnerships, limited liability companies or other lawful entities
entitled to do business in the state in which the Real Properties are located provided such entity or entities, shall be controlled
by, controlling or under common control with Buyer (each, an “Assignee”); provided, however, that any such assignment
shall not relieve the original Buyer from all covenants, obligations and liabilities under this Agreement. In the event of either
a complete or partial assignment of this Agreement to an Assignee: (a) Buyer shall notify Seller promptly, and in no event
less than five (5) business days prior to the applicable Closing Date of the assignment of the Real Property or Real Properties
subject to the assignment, (b) Buyer and such Assignee shall be jointly and severally liable under this Agreement from and
after such assignment, (c) Assignee shall assume all obligations of Buyer under this Agreement with regard to the applicable
Real Property or Real Properties, and (d) from and after any such assignment the term “Buyer” shall be deemed
to mean the Assignee under any such assignment.

 

16.02         Limitation
of Liability. No shareholders, partners or members of either party, nor any of its or their respective officers, directors,
agents, employees, heirs, successors or assigns shall have any personal liability of any kind or nature for or by reason of any
matter or thing whatsoever under, in connection with, arising out of or in any way related to this Agreement and the transactions
contemplated herein, and each party hereby waives for itself and anyone who may claim by, through or under such party any and all
rights to sue or recover on account of any such alleged personal liability.

 

    	 

    	 

    

 

Notwithstanding anything
set forth in this Agreement to the contrary, Buyer agrees that Seller shall have no liability to Buyer for any breach of Seller’s
covenants, agreements, representations or warranties hereunder or under any other agreement, document, certificate or instrument
delivered by Seller to Buyer unless the valid claims for all such breaches collectively aggregate more than Twenty-Five Thousand
and 00/100 Dollars ($25,000.00), in which event the full amount of such valid claims shall be actionable, up to the cap set forth
in the following sentence. Further, Buyer agrees that any recovery against Seller for any breach of Seller’s covenants, agreements,
representations and warranties hereunder or under any other agreement, document, certificate or instrument delivered by Seller
to Buyer, or under any law applicable to the Property or this transaction, shall be limited to Buyer’s actual damages not
in excess of two percent (2%) of the Purchase Price in the aggregate and that in no event shall Buyer be entitled to seek or obtain,
and Buyer hereby waives any right to pursue a claim for, any other damages of any kind, including, without limitation, consequential,
indirect or punitive damages. Furthermore, Seller’s liability under this Agreement is explicitly limited to Seller’s
interest in the Property, including any proceeds thereof. Buyer shall have no recourse against any other property or assets of
Seller, any assets of any of the past, present or future, direct or indirect, shareholders, partners, members, managers, principals,
directors, officers, agents, incorporators, affiliates or representatives of Seller, Marsh Realty Company, and Marsh Properties,
LLC (collectively, “Seller Parties”) or of any of the assets or property of any of the foregoing for the payment or
collection of any amount, judgment, judicial process, arbitral award, fee or cost or for any other obligation or claim arising
out of or based upon this Agreement and requiring the payment of money by Seller. Except as otherwise expressly set forth in this
Section 16.02, neither Seller nor any Seller Party shall be subject to levy, lien, execution, attachment or other enforcement procedure
for the satisfaction of any of Buyer’s rights or remedies under or with respect to this Agreement, at law, in equity or otherwise.
Buyer shall not seek enforcement of any judgment, award, right or remedy against any property or asset of Seller or any Seller
Parties other than Seller’s interest in the Property or any proceeds thereof. Notwithstanding the foregoing, from and after
the Closing of the Phase II Real Property, Seller agrees to maintain liquid assets in an amount not less than One Hundred Thousand
and No/100 Dollars ($100,000.00) for the Phase II Real Property for a period of time equal to the survival period for the Closing
of the Phase II Real Property set forth in Section 5.03 of this Agreement. The provisions of this Section 16.02 shall survive the
applicable Closing or any termination or purported termination of this Agreement.

 

Subject to the limitations
on liability set forth in this Agreement, including, without limitation, the provisions of Section 15.01 above and this Section
16.02, Seller shall indemnify and hold harmless and defend Buyer from and against any and all demands, obligations, assessments,
losses, costs, claims, liabilities, judgments, and damages (including, without limitation, reasonable attorneys’ and accountants’
fees and any costs reasonably incurred in investigating, preparing or defending against or prosecuting any litigation or claim),
relating or attributable to a breach of any of the representations, warranties, covenants and/or indemnifications of Seller set
forth in this Agreement.

 

16.03         Independent
Responsibility/No Alter Ego.  The parties hereby agree that the obligations of the Parties under this Agreement are separate
and distinct, and that no party's affiliate (of any type or nature) or other third party is responsible in any manner
whatsoever for the debts, liabilities or obligations of any party hereto.  As such, the parties agree that no party's
affiliate (of any type or nature) or other third party is an alter-ego of any other party (or any affiliate thereof)
or in any manner is or shall be vicariously, derivatively or otherwise liable for the debts, liabilities or obligations of
any party or any affiliate thereof (collectively, “Derivative Claims”).  The parties further agree that,
as a material part of and material inducement for the transactions contemplated by this Agreement, they will not assert
any Derivative Claims in any dispute, claim or controversy relating to or arising out of this Agreement.  The provisions
of this Section 16.03 shall survive the closing or consummation of the transactions contemplated by this Agreement or any termination
or purported termination of this Agreement.

 

    	 

    	 

    

 

16.04         Integration.
This Agreement embodies and constitutes the entire understanding between the parties with respect to the transaction contemplated
herein, and all prior agreements, understandings, representations and statements, oral or written, are merged into this Agreement.
Neither this Agreement nor any provision hereof may be waived, modified, amended, discharged or terminated except by an instrument
signed by the party against whom the enforcement of such waiver, modification, amendment, discharge or termination is sought, and
then only to the extent set forth in such instrument.

 

16.05         Governing
Law. This Agreement shall be governed by, and construed in accordance with the laws of the state of North Carolina. Each party
hereby irrevocably and unconditionally (a) agrees that any action, suit or proceeding arising out of or related to this Agreement
or any of the transactions contemplated hereby, whether based in contract, tort or any other legal theory, shall be brought exclusively
in the state or federal courts located in Charlotte, North Carolina (and in the appropriate appellate courts therefrom); (b) consents
and submits to the personal jurisdiction of such courts in any such action, suit or proceeding; (c) waives, to the fullest
extent permitted by law, any claim, defense or objection to the venue of such courts (whether on the basis of forum non conveniens
or otherwise); (d) agrees that it will not attempt the removal of any such action, suit or proceeding to any other court,
whether state or federal courts of the United States or the courts of any other country; and (e) consents to service of process
on such party in the manner provided in Section 14 above.

 

16.06         Captions.
The captions in this Agreement are inserted for convenience of reference only and in no way define, describe or limit the scope
or intent of this Agreement or any of the provisions hereof.

 

16.07         Bind
and Inure. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors
and assigns.

 

16.08         Drafts.
This Agreement shall not be binding or effective until properly executed and delivered by both Seller and Buyer. The delivery by
Buyer to Seller of an executed counterpart of this Agreement shall constitute an offer which may be accepted by the delivery to
Buyer of a duly executed counterpart of this Agreement and the satisfaction of all conditions under which such offer is made, but
such offer may be revoked by Buyer by written notice given at any time prior to such acceptance and satisfaction.

 

16.09         Number
and Gender. As used in this Agreement, the masculine shall include the feminine and neuter, the singular shall include the
plural and the plural shall include the singular, as the context may require.

 

16.10         Schedules,
Exhibits and Addenda. If the provisions of any schedule, exhibit or addendum to this Agreement are inconsistent with the provisions
of this Agreement, the provisions of such schedule or exhibit shall prevail. The schedules, exhibits and addenda attached are incorporated
herein as integral parts of this Agreement.

 

    	 

    	 

    

 

16.11         Confidentiality/Filings/Press
Releases. Prior to the applicable Closing, both Seller and Buyer agree to keep the terms of this Agreement confidential, and
not to disclose its contents to anyone except (a) their respective lenders, investors, partners, legal counsel, accountants, and
other representatives that are involved with the consummation of this transaction; or (b) as may be required by applicable law,
except that either party may make such public announcement regarding the transaction contemplated by this Agreement as may, in
such party’s reasonable judgment, be required by, or appropriate under, applicable law, including, without limitation, disclosures
required to be made to the Securities and Exchange Commission or the NYSE MKT and any press releases issued in connection with
such Securities and Exchange Commission or NYSE MKT filings. Neither Buyer nor Seller shall at any time issue a press release or
otherwise communicate with media representatives regarding this sale and purchase unless such release or communication has received
the prior approval of the other party, such approval not to be unreasonably withheld. In addition, subject to the foregoing exceptions,
Buyer covenants and agrees that it shall maintain confidential, and not communicate or make any public announcement or disclosure
of, any materials, documentation or information relating to Buyer’s due diligence investigations of the Property to any third
parties, before or after the Closing. Notwithstanding anything contained herein to the contrary, in the event Buyer is required
by law to disclose any confidential documents or information, prior to disclosing same, Buyer shall notify Seller in writing of
such required disclosure, shall exercise all commercially reasonable efforts, at Seller's expense, to preserve the confidentiality
of the confidential documents or information, as the case may be, including, without limitation, reasonably cooperating with Seller
to obtain an appropriate court order or other reliable assurance that confidential treatment will be accorded such confidential
documents or information, as the case may be, by such tribunal or authority and shall disclose only that portion of the confidential
documents or information which it is legally required to disclose. If this Agreement is terminated such confidentiality shall be
maintained, and Buyer and the Buyer Parties will destroy or deliver to Seller, upon request, all documents and other materials,
and all copies thereof, obtained by Buyer or the Buyer Parties in connection with this Agreement that are subject to such confidence,
with any such destruction confirmed by Buyer. Buyer covenants that it shall inform each of the Buyer Parties of the confidential
nature of the information supplied by Seller or Broker to Buyer and/or the Buyer Parties. Buyer shall use reasonable efforts to
cause each of the Buyer Parties to comply with the restrictions contained in this Agreement. Notwithstanding any provision in this
Agreement to the contrary, neither the Buyer nor the Buyer Parties shall contact any governmental official or representative regarding
the Property without the prior written consent of Seller other than in connection with performing a ad valorem tax and zoning/building
code file review. Buyer hereby indemnifies Seller against, and holds Seller harmless from, any and all claims, losses, damages,
liabilities and expenses (including, without limitation, reasonable attorneys’ fees actually incurred) to the extent arising
in connection with Buyer’s obligations under this Section. Seller hereby indemnifies Buyer against, and holds Buyer harmless
from, any and all claims, losses, damages, liabilities and expenses (including, without limitation, reasonable attorneys’
fees actually incurred) to the extent arising in connection with Seller's obligations under this Section. The provisions of this
Section shall survive the applicable Closing or termination of this Agreement.

 

16.12         Time.
Time is of the essence in the performance of the parties’ respective obligations set forth in this Agreement. If the Closing
Date or any other deadline hereunder should fall on a Saturday, Sunday or legal holiday in the States of New York and North Carolina
or any federal legal holiday, such date shall automatically be extended to the next normal business day. For purposes of this Agreement,
a “business day” shall mean any calendar day not a Saturday, Sunday or legal holiday.

 

16.13         Tax-Free
Exchange. If either party (the “Advising Party”) advises the other party (the “Non-Advising
Party”) of its intention to seek to effect a tax deferred exchange pursuant to Section 1031 of the Internal Revenue Code,
in connection with the transaction contemplated herein, Non-Advising Party agrees to accommodate Advising Party in seeking to effect
a tax deferred exchange for the Property, provided that such exchange shall not (i) delay the applicable Closing, or (ii) require
Non-Advising Party to incur any cost or liability of any kind or nature on account of such exchange. Advising Party may assign
its rights under this Agreement immediately prior to Closing to an Exchange Accommodation Titleholder or a qualified intermediary
of Advising Party’s choice for the purpose of completing such an exchange. Non-Advising Party agrees to cooperate with Advising
Party and the Exchange Accommodation Titleholder with respect to such exchange and agrees to execute all documentation required
to effectuate such exchange, at no cost or liability to Non-Advising Party. Non-Advising Party makes no warranty whatsoever with
respect to the qualification of the transaction for tax deferred exchange treatment under Section 1031 and Non-Advising Party shall
have no responsibility, obligation or liability with respect to the tax consequences to Advising Party.

 

    	 

    	 

    

 

16.14         Counterparts.
This Agreement may be executed in any number of identical counterparts, any or all of which may contain the signatures of fewer
than all of the parties but all of which shall be taken together as a single instrument. Handwritten signatures to this Agreement
transmitted by telecopy or electronic transmission (for example, through use of a Portable Document Format or “PDF”
file) shall be valid and effective to bind the party so signing. Each party agrees to promptly deliver to the other party an executed
original of this Agreement with its actual signature, but a failure to do so shall not affect the enforceability of this Agreement,
it being expressly agreed that each party to this Agreement shall be bound by its own telecopied or electronically transmitted
handwritten signature and shall accept the telecopied or electronically transmitted handwritten signature of the other party to
this Agreement. This Agreement may not be recorded and any attempt to do so shall be of no effect whatsoever.

 

16.15         Reporting
Person. Seller and Buyer hereby designate the Escrow Agent to act as and perform the duties and obligations of the “reporting
person” with respect to the transaction contemplated by this Agreement for purposes of 26 C.F.R. Section 1.6045-4(e)(5) relating
to the requirements for information reporting on real estate transactions closed on or after January 1, 1991.

 

16.16         Prevailing
Party Legal Fees. If a party to this Agreement shall bring any action, suit, counterclaim, appeal or arbitration proceeding
against the other party, declaratory or otherwise, to enforce the terms hereof or to declare rights hereunder (referred to herein
as an “Action”), the non-prevailing party in such Action shall pay to the prevailing party in such Action a
reasonable sum for the prevailing party’s attorneys’ fees and expenses incurred in prosecuting or defending such Action
and/or enforcing any judgment, order, ruling or award (referred to herein as a “Decision”), granted therein,
all of which shall be deemed to have accrued from the commencement of such Action. Any Decision entered into in such Action shall
contain a specific provision providing for the recovery of attorneys’ fees and expenses incurred in obtaining and enforcing
such Decision. The court or arbitrator may fix the amount of reasonable attorneys’ fees and expenses upon the request of
any party. For purposes of this Section 16.16, attorneys’ fees shall include, without limitation, fees incurred in connection
with (i) post judgment motions and collection actions, (ii) contempt proceedings, (iii) garnishment, levy and debtor and third
party examination, (iv) discovery and (v) bankruptcy litigation. The terms of this Section 16.16 shall survive Closing or any earlier
termination of this Agreement.

 

16.17         Waiver
of Jury Trial. BUYER AND SELLER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY DOCUMENTS CONTEMPLATED TO BE
EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ANY ACTIONS
OF EITHER PARTY ARISING OUT OF OR RELATED IN ANY MANNER WITH THIS AGREEMENT OR THE PROPERTY (INCLUDING WITHOUT LIMITATION, ANY
ACTION TO RESCIND OR CANCEL THIS AGREEMENT OR ANY CLAIMS OR DEFENSES ASSERTING THAT THIS AGREEMENT WAS FRAUDULENTLY INDUCED OR
IS OTHERWISE VOID OR VOIDABLE). THIS WAIVER IS A MATERIAL INDUCEMENT FOR SELLER TO ENTER INTO AND ACCEPT THIS AGREEMENT AND THE
DOCUMENTS TO BE DELIVERED BY BUYER AT CLOSING, AND SHALL SURVIVE THE CLOSING OR TERMINATION OF THIS AGREEMENT. Each party hereby
authorizes and empowers the other to file this Section 16.17 and this Agreement with the clerk or judge of any court
of competent jurisdiction as a written consent to waiver of jury trial.

 

    	 

    	 

    

 

16.18         Post-Closing
Audit Right. At Seller’s request, Buyer shall promptly provide to Seller (at Seller’s expense) copies of,
or shall provide Seller reasonable access to, such factual and non-proprietary or non-confidential information as may be reasonably
requested by Seller, and in the possession or control of Buyer, or its property manager or accountants, to enable Seller auditor
to conduct an audit, in accordance with Rule 3-14 of Securities and Exchange Commission Regulation S-X, of the income statements
of the Property for the year to date of the year in which Closing occurs (provided, however, that other than fees paid or payable
to Buyer, a Buyer affiliate or a third party for on-site property management, such audit shall not include an audit of asset management
fees internally allocated by Buyer (as opposed to paid to a third party) or interest expenses attributable to the Buyer). 
Seller shall be responsible for all out-of-pocket costs associated with any such audit.  Buyer shall reasonably cooperate
(at no cost to Buyer) with Seller’s auditor in the conduct of such audit.    Buyer shall maintain its records for
use under this Section 15.21, and Seller shall have the audit rights under this Section 15.21, for a period of not more than six
(6) months after the Closing Date.  The provisions of this Section shall survive Closing.

 

16.19         All
or None Transaction. Notwithstanding anything to the contrary set forth in this Agreement, and for the avoidance of doubt,
Seller and Buyer hereby acknowledge and agree that this is an “all or none” transaction and under no circumstances
shall either of Buyer or Seller ever be compelled (at the risk of default or forfeiture of any portion of the Deposit, as applicable)
to purchase or sell, as applicable, anything less than all of the Property (in the condition required hereunder and pursuant to
the terms hereof); provided, however, in no event shall the "all or none" concept operate to grant Seller any repurchase
right or call option with regard to the Phase I Land, following Buyer's acquisition thereof, to the extent Buyer fails to close
on the Phase II Land, regardless of the reason therefore.

 

[signature page to follow]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement under seal as of the date first above written.

 

	 	SELLER:
	 	 
	 	PARK KINGSTON INVESTORS, LLC
	 	a North Carolina limited liability
	 	 
	 	By: Marsh Properties, LLC, its Manager
	 	 
	 	By: 	/s/ George S. Warren
	 	Name:	George S. Warren
	 	Title:	Executive Vice President
	 	 	 
	 	BUYER:
	 	 
	 	BLUEROCK REAL ESTATE, L.L.C.,
	 	a Delaware limited liability company
	 	 	 
	 	By: 	/s/ Jordan Ruddy
	 	 	Jordan Ruddy, Authorized Signatory
	 	 	 
	 	ESCROW AGENT:
	 	 
	 	CHICAGO TITLE INSURANCE COMPANY
	 	 
	 	By: 	/s/ M. Scott Mansfield
	 	Name:	M. Scott Mansfield
	 	Title:	Vice President

 

    	 

    	 

    

 

INITIAL DEPOSIT RECEIPT

 

The Initial Deposit has
been received by the Escrow Agent on this the _______ day of _________________, 2014, and the Escrow Agent acknowledges the terms
thereof and agrees to perform as Escrow Agent in accordance therewith.

 

	 	ESCROW AGENT:
	 	 
	 	CHICAGO TITLE INSURANCE COMPANY
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

 

ADDITIONAL DEPOSIT RECEIPT

 

The Additional Deposit
has been received by the Escrow Agent on this the _______ day of __________________, 2015, and the Escrow Agent acknowledges the
terms thereof and agrees to perform as Escrow Agent in accordance therewith.

 

	 	ESCROW AGENT:
	 	 
	 	CHICAGO TITLE INSURANCE COMPANY
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

 

EXTENSION DEPOSIT RECEIPT

 

The Extension Deposit has
been received by the Escrow Agent on this the _______ day of _______________________, 2015, and the Escrow Agent acknowledges the
terms thereof and agrees to perform as Escrow Agent in accordance therewith.

 

	 	ESCROW AGENT:
	 	 
	 	CHICAGO TITLE INSURANCE COMPANY
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

FINAL DEPOSIT RECEIPT

 

The Final Deposit has been
received by the Escrow Agent on this the _______ day of _______________________, 201__, and the Escrow Agent acknowledges the terms
thereof and agrees to perform as Escrow Agent in accordance therewith.

 

	 	ESCROW AGENT:
	 	 
	 	CHICAGO TITLE INSURANCE COMPANY
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

LIST OF SCHEDULES

 

Schedules

 

	Schedule A	-	Real Properties, Allocated Purchase Price
	Schedule B-1	-	Description of Land (Phase I)
	Schedule B-2	-	Description of Land (Phase II)
	Schedule C	-	Excluded Personal Property
	Schedule D	-	Prior Surveys
	Schedule E	-	Service Contracts 
	Schedule F	-	Environmental Reports
	Schedule G	-	Litigation
	Schedule H	-	Schedule of Locator Fees, Leasing or Brokerage Commissions
	Schedule I	-	Notice of Violations / Condemnations
	Schedule 1.06	-	Form Punch List Escrow Agreement
	Schedule 4.25	-	Additional Seller Deliveries
	Schedule 7.01	-	Seller’s Insurance
	Schedule 8.01	-	Leading Guidelines
	Schedule 9.01(d)	-	Form of Title Affidavit

 

Exhibits

 

	Exhibit A	-	Form of Deed 
	Exhibit B	-	Form of Bill of Sale
	Exhibit C	-	Form of General Assignment
	Exhibit D	-	Form of Tenant Notice Letter
	Exhibit E	-	Form of FIRPTA Certificate
	Exhibit F	-	Form of Termination of Management Agreement
	Exhibit G	-	Form of Information for 1099-S Filing
	Exhibit H	-	Form of Reciprocal Easement Agreement

 

    	 

    	 

    

 

SCHEDULE A

SELLERS, REAL PROPERTIES, ALLOCATED PURCHASE PRICE, ALLOCATED PORTION OF THE DEPOSIT

 

	Real Property	 	Property Address	 	Allocated 
 Purchase Price	 	 	Allocated
 Portion of the
 Initial Deposit	 	 	Allocated
 Portion of the
 Additional
 Deposit	 	 	Allocated
 Portion of the
 Extension
 Deposit	 	 	Allocated
 Portion of the
 Final Deposit	 
	Park & Kingston

 (Phase I)
 153 Apartments 
	 	125 W. Park Ave. 
Charlotte, NC 28203	 	$	27,850,000.00	 	 	$	350,000.00	 	 	$	150,000.00	 	 	$	50,000.00	 	 	$	0.00	 
	Park & Kingston 
(Phase II)
 15 Apartments 
	 	125 W. Park Ave. 
Charlotte, NC 28203	 	$	3,400,000.00	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	250,000.00	 

 

    	 

    	 

    

 

SCHEDULE B-1

LEGAL DESCRIPTION (Phase I)

 

 

Tax Parcel ID #’s: 12306103, 12306104, 12306113, 12306114,
12306115, and 12306117

 

    	 

    	 

    

 

SCHEDULE B-2

LEGAL DESCRIPTION (Phase II)

 

 

AND

 

  

Tax Parcel ID #’s: 12306116 and 12306118

 

    	 

    	 

    

 

SCHEDULE C-1

PERSONAL PROPERTY

 

[see attached]*

 

*The list of Personal Property also includes all equipment and other
items located in the fitness rooms and associated areas within the Improvements.

 

    	 

    	 

    

 

SCHEDULE C-2

EXCLUDED PERSONAL PROPERTY

 

 

    	 

    	 

    

 

SCHEDULE D

PRIOR SURVEYS

 

 

    	 

    	 

    

 

SCHEDULE E

SERVICE CONTRACTS 

 

 

    	 

    	 

    

 

SCHEDULE F

ENVIRONMENTAL REPORTS

 

 

    	 

    	 

    

 

 

SCHEDULE G

LITIGATION

 

None.

 

    	 

    	 

    

 

SCHEDULE H

LOCATOR FEES, LEASING OR BROKERAGE COMMISSIONS

 

None.

 

    	 

    	 

    

 

SCHEDULE I

NOTICE OF VIOLATIONS/CONDEMNATIONS

 

		1.	The potential future widening of South Tryon Street, which is reflected and accounted for on Sheet C2.0 of the Phase II Plans.

 

    	 

    	 

    

 

Schedule 1.06

Punch List Escrow Agreement

 

PUNCH LIST ESCROW AGREEMENT

 

THIS PUNCHLIST HOLDBACK
ESCROW AGREEMENT (this “Agreement”) is executed to be effective as of ________, 201___, by and between ______________________
(“Seller”), ________________________(“Purchaser”), and _________________________(“Escrow Agent”),
upon the terms and provisions hereinafter set forth. Seller, Purchaser and the Escrow Agent are sometimes hereinafter referred
to individually as a “Party” and collectively as the “Parties.”

 

RECITALS:

 

WHEREAS, Seller and Purchaser
are parties to that certain Purchase and Sale Agreement (the “Purchase Agreement”) dated _________________ ___, 2014,
pertaining to the sale and purchase of the project located at _____________________, North Carolina and known as Park & Kingston
(the “Project”), as more particularly described in the Purchase Agreement;

 

WHEREAS, pursuant to Section
1.06 of the Purchase Agreement, (a) the sum of $____ out of the Purchase Price has been placed into escrow (the “Punchlist
Holdback”) with the Escrow Agent; and (b) portions of the Punchlist Holdback are to be released to Seller or, if applicable,
Purchaser, as the case may be, to pay costs incurred in connection with completion of the punch list items described on Exhibit
“A” attached hereto (the “Punchlist”);

 

WHEREAS, the Parties desire
to enter into this Agreement for the purpose of confirming their agreement with respect to the Punchlist Holdback;

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in consideration of the mutual benefits
to be derived pursuant to the terms hereof, the parties hereby agree as follows:

 

1.            Seller and Purchaser
hereby engage Escrow Agent to serve as escrow agent, and Escrow Agent accepts such engagement and agrees to act as escrow agent
in accordance with the provisions of this Agreement.

 

2.            Seller has delivered
to Escrow Agent, and Escrow Agent acknowledges receipt of, the Punchlist Holdback. Escrow Agent shall invest the Punchlist Holdback
in one or more federally insured interest-bearing bank accounts at one or more national banking associations. Interest on the Punchlist
Holdback shall become part of the Punchlist Holdback and shall be disbursed in the same manner as the Punchlist Holdback. The Punchlist
Holdback shall be invested under Seller’s taxpayer identification number. Seller agrees to execute and deliver to Escrow
Agent such forms as Escrow Agent may require in connection with the investment of such funds, and Escrow Agent will not be required
to invest the funds in an interest bearing account until such time as Seller has provided such forms to Escrow Agent.

 

3.            Seller and Purchaser
agree that the list of items described on Exhibit "A" attached hereto constitute the "Punchlist Items" [to
be populated by the Punch List prepared by Purchaser and not completed by Closing]. Portions of the Punchlist Holdback are to be
released from time to time by Escrow Agent to Seller or, if applicable, Purchaser for payment of costs of completing the Punchlist
Items as follows:

 

    	 

    	 

    

 

(a)           (i)            At such time as
Seller has completed any Punchlist Item, Seller shall be entitled to draw down on the Punchlist Holdback to pay to the applicable
subcontractors (if not previously paid by Seller) or to reimburse Seller or _______________ (“Contractor”) for (if
previously paid by Seller or Contractor) costs incurred in connection therewith and shall submit a request to Escrow Agent identifying
the portion of the Punchlist Holdback required to pay to the subcontractor or reimburse Seller or Contractor for such costs. Such
request by Seller shall include a certificate signed by Seller (“Seller’s Certificate”) specifying the amount
required to be released and confirming that the funds will be used only for payment of such work, together with confirmation from
________________ (the “Architect”) that the applicable portion of the Punchlist work has been completed and affidavits,
lien waivers and releases signed by each contractor or subcontractor performing any portion of the Punchlist work for which payment
is requested (which waiver or release may be conditioned upon payment of the amount reflected in the then applicable draw) as required
by the Escrow Agent to issue a ______ endorsement to Purchaser’s title insurance policy without exception for matters arising
from mechanic’s lien claims in connection with portions of the Punchlist work for which payment is requested. Simultaneously
with the delivery of any such request to Escrow Agent, Seller shall deliver a copy of the request (including Seller’s Certificate
and other documentation) to Purchaser.

 

(ii)            Within five (5) days
following receipt of such request, Escrow Agent shall release the applicable portion of the Punchlist Holdback, as described in
such request, to the subcontractors, Seller or Contractor, as applicable. Seller may use the released funds only for payment of
or reimbursement for the work referred to in (a) (i) above.

 

(b)           (i) In the event that
Seller has not completed the work on the Punchlist Items on or prior to the date which is thirty (30) days following the Closing
Date, and such failure continues uncured for ten business (10) days after written notice thereof from Purchaser to Seller, Purchaser
shall be entitled to take such actions as may be required to cause the Punchlist work to be completed, in which event Purchaser
shall be entitled to draw down on the Punchlist Holdback to pay to the applicable subcontractors (if not previously paid by Purchaser)
or reimburse Purchaser (if previously paid by Purchaser) for costs incurred in connection therewith and shall submit a request
to Escrow Agent identifying the portion of the Punchlist Holdback required to pay the subcontractors or reimburse Purchaser for
such costs. Such request by Purchaser shall include a certificate signed by Purchaser (“Purchaser’s Certificate”)
specifying the amount required to be released and confirming that the funds will be used only for payment of such work, together
with confirmation from the Architect (or other similar professional) that the applicable portion of the Punchlist work has been
completed and lien waivers and releases signed by each contractor or subcontractor performing any portion of the Punchlist work
for which payment is requested (which waiver or release may be conditioned upon payment of the amount reflected in the then applicable
draw). Simultaneously with the delivery of any such request to Escrow Agent, Purchaser shall deliver a copy of the request (including
Purchaser’s Certificate and other documentation) to Seller.

 

(ii)            Within five (5) days
following receipt of such request, Escrow Agent shall release the applicable portion of the Punchlist Holdback, as described in
such request, to Purchaser. Purchaser may use the released funds only for payment of or reimbursement for the work referred to
in (b) (i) above.

 

(c)           Upon completion
of all Punchlist Items and payment of all costs incurred in connection therewith, Escrow Agent shall release the balance of the
Punchlist Holdback to Seller.

 

    	 

    	 

    

 

The Architect’s determination with respect
to completion of Punchlist Items shall be binding on the Parties. Escrow Agent will not be liable under this Agreement for any
funds it disburses to Seller or Purchaser. In the event that, pursuant to the provisions of this Agreement, Seller or Purchaser
is entitled to receive a payment or disbursement of any portion of the Punchlist Holdback, Seller and Purchaser each agree to execute
and deliver to Escrow Agent such authorizations and instructions as may be required to direct Escrow Agent to release the applicable
portion of the Punchlist Holdback as provided as provided herein.

 

4.            In the event of any
dispute between Seller and Purchaser regarding the disbursement of the Punchlist Holdback or any portion thereof, or in the event
Escrow Agent shall receive conflicting demands or instructions with respect thereto, Escrow Agent shall be entitled to deposit
all funds into a court of general jurisdiction in Mecklenburg County, North Carolina, and to interplead Seller and Purchaser in
connection therewith. Seller and Purchaser hereby consent to the jurisdiction of any such court in connection with such dispute.

 

5.            Escrow Agent shall
not be entitled to receive any fees pursuant to this Agreement.

 

6.            Except as set forth
herein, Escrow Agent is not a party to, or bound by any agreement which may be deposited under, evidenced by, or which arises out
of the provisions of this Agreement.

 

7.            Escrow Agent acts hereunder as a
depository only and is not responsible or liable in any manner whatever for the sufficiency, correctness, genuineness or validity
of any instrument deposited with it hereunder, or with respect to the form or execution of the same, or the identity, authority,
or rights of any person executing or depositing the same. Seller and Purchaser hereby certify that they are aware the Federal Deposit
Insurance Corporation (the “FDIC”) coverages apply only to a maximum amount of One Hundred Thousand and No/100 Dollars
($100,000.00) for each individual depositor. Seller and Purchaser understand that Escrow Agent assumes no responsibility for, nor
will Seller and Purchaser hold same liable for, any loss occurring which arises from the fact that the amount of the above account
may cause the aggregate amount of any individual depositor's account to exceed One Hundred Thousand and No/100 Dollars ($100,000.00)
and that the excess amount is not insured by the FDIC.

 

8.            Escrow Agent shall
be protected in acting upon any notice, request, waiver, consent, receipt or other paper or document believed by Escrow Agent to
be genuine and to be signed by the proper party or parties.

 

9.            Escrow Agent may
consult with legal counsel in the event of any dispute of questions as to the construction of the foregoing instructions, or Escrow
Agent's duties hereunder, and Escrow Agent shall incur no liability and shall be fully protected in acting in accordance with the
opinion and instructions of such counsel.

 

10.          Escrow Agent shall not be liable
for any damage, liability, or loss arising out of or in connection with the services rendered by Escrow Agent pursuant to this
Agreement, except for any damage, liability, or loss resulting from the willful misconduct, negligence or breach of this Agreement
by Escrow Agent or any of its officers or employees. Seller and Purchaser hereby release and discharge Escrow Agent from all matters
with respect to the subject matter hereof (except for the willful misconduct, negligence or breach of this Agreement by Escrow
Agent or any of its officers or employees) and agree to indemnify and hold Escrow Agent harmless from and against all costs, damages,
judgments, attorney's fees, expenses, obligations, and liabilities of any kind or nature, which in good faith, Escrow Agent may
incur or sustain in connection with this Agreement (except for the willful misconduct, negligent conduct or breach of this Agreement
by Escrow Agent or any of its officers or employees). In the event of controversy or litigation arising out of this transaction,
which (a) results in any expense or attorney's fees to Escrow Agent, by virtue of such claim or default, controversy or litigation;
or (b) requires a declaratory judgment by a proper court as to the disbursement of said escrowed funds, unless due to the willful
misconduct, negligence or breach of this Agreement by Escrow Agent, Escrow Agent is hereby authorized to deduct such expense or
attorney's fees out of the escrowed funds, and to pay any remaining balance over to the party entitled thereto as agreed upon by
the parties, or as directed by a court of competent jurisdiction; provided, that as between Seller and Purchaser, the prevailing
party in such dispute shall be entitled to recover all of such costs and expenses from the other party.

 

    	 

    	 

    

 

11.          This Agreement may
be amended only by written agreement signed by Seller and Purchaser; however, (a) Escrow Agent will not be bound by such amendment
until such time as Escrow Agent has been provided with a copy of the fully executed amendment; and (b) should, at any time, any
attempt be made to modify this Agreement in a manner that would increase the duties and responsibilities of Escrow Agent, or to
modify this Agreement in any manner that Escrow Agent shall deem undesirable, Escrow Agent may resign by notifying the parties
hereto in writing, by certified mail to their respective addresses set forth below; and until (i) the acceptance by such parties;
or (ii) fifteen (15) days following the date upon which notice was mailed, whichever occurs sooner, Escrow Agent's only remaining
obligation shall be to perform its duties hereunder in accordance with the terms of this Agreement.

 

12.          Escrow Agent may
be removed by written agreement executed by both Seller and Purchaser, in which event, Escrow Agent shall disburse the balance
of the Punchlist Holdback and all other documents and information held by Escrow Agent pursuant to this Agreement to or as directed
by written instructions signed by both Seller and Purchaser.

 

13.          All notices, requests and other communications under this Agreement shall be in writing and shall be delivered in person by
hand delivery or overnight delivery service, by facsimile or by email (provided, that any notice of default or termination notice
may not be given by email), or sent by certified mail, return receipt requested, addressed as follows:

 

If to Seller:

 

with a copy to:

 

a)

 

If to Purchaser:

 

With a copy to:

 

If to Escrow Agent:

or such other address, and to the attention of such other person,
as the Parties shall give notice as herein provided. All such notices, requests and other communications shall be deemed to have
been sufficiently given for all purposes hereof upon receipt at such address if delivered in person, by overnight delivery, by
facsimile or by email, or if mailed, upon deposit of both the original and any required copies in a post office or official depository
of the United States Postal Service.

 

14.         THIS AGREEMENT AND THE TRANSACTIONS
CONTEMPLATED HEREBY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA. The Parties
hereby consent to jurisdiction and venue in Durham, North Carolina,
and agree that such jurisdiction and venue shall be sole and exclusive for any and all actions or disputes related to this Agreement
or any related instrument.

 

    	 

    	 

    

 

15.          This
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators,
legal representatives, successors and assigns. This Agreement may not be assigned by either Seller or Purchaser except in connection
with and to the same party as the Purchase Agreement is assigned, and Purchaser shall be entitled to pledge its rights under this
Agreement and the Punchlist Holdback to Purchaser’s lender. This Agreement may not be assigned by Escrow Agent without the
prior written consent of Seller and Purchaser.

 

16.
  With respect to all provisions of this Agreement, time is of the essence. However, if the Closing or the final date of any period
which is set out in any provision of this Agreement falls on a Saturday, Sunday or legal holiday under the laws of the United States
or the State of North Carolina, then, and in such event, the Closing or such period shall be extended so that the Closing or the
last day of such period falls on the next day which is not a Saturday, Sunday or legal holiday.

 

17.          This Agreement may be executed in
multiple counterparts. A facsimile or pdf copy of this Agreement bearing the signature of a Party hereto shall be sufficient to
bind such Party to the terms of this Agreement.

 

18.          All capitalized terms used but not
defined herein shall have the meanings ascribed thereto in the Purchase Agreement.

 

[SIGNATURES BEGIN ON NEXT PAGE]

 

    	 

    	 

    

 

Schedule 4.25

Additional Seller Deliveries

 

Detailed budgets for 2014 (year to date) (if available);

Resident demographic profile;

Tax assessment notices for the Property for the past two (2) years,
including any correspondence relating to tax appeals;

Maintenance Log;

Make available for Buyer’s inspection at the Property, at
the request of Buyer during business hours, any correspondence with government agencies;

Tenant and vendor correspondence files;

Correspondence with government agencies;

Appraisals (none in existence);

Final development cost information;

Corporate Units Agreements (N/A);

Title policies;

 

    	 

    	 

    

 

Schedule 7.01

 

Seller's Insurance

 

    	 

    	 

    

 

 

    	 

    	 

    

 

Schedule 8.01

 

Leasing Guidelines

 

 

    	 

    	 

    

 

Schedule 9.01(d)

 

Form of Title Affidavit

 

(See attached)

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

EXHIBIT A

FORM OF DEED

 

	Excise Tax  $_____	Recording Time, Book and Page

 

Parcel Identifier No. _____________

Verified by __________ County on the ___
 day of _______________, 2015; By: ______________________ 

 

Mail after recording to Grantee

This instrument was prepared by: Johnston,
Allison & Hord, P.A.

 

	Brief Description for the index 	 

 

NORTH CAROLINA SPECIAL WARRANTY DEED

 

THIS DEED made this ____ day of _________,
20______, by and between

 

	GRANTOR	GRANTEE
	 	 
	_______________________	  _______________________
	 	 
	Mailing Address:	  Mailing Address:
	______________________	  ______________________
	______________________	  ______________________
	 	 
	Enter in appropriate block for each party: name, address, and, if appropriate, character of entity, e.g., corporation or partnership.

 

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

 

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

 

SEE ATTACHED EXHIBIT A FOR LEGAL
DESCRIPTION

 

The Property herein conveyed does not include
the primary residence of a Grantor.

 

    	 

    	 

    

 

The property hereinabove described was acquired
by Grantors by instrument recorded in Book _____ at Page ______.

 

TO HAVE AND TO HOLD the aforesaid Property
and all privileges and appurtenances thereto belonging to the Grantee in fee simple.

 

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

 

This conveyance is SUBJECT TO all restrictions,
conditions, reservations, easements, and other matters of record and ad valorem taxes for the current and subsequent years.

 

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

 

	 	 
	_______________________	 
	 	 

	By: 	 	 

	Name: 	 	 

	Title: 	 	 

 

State of __________________
– County of _________________

 

I, the undersigned, a Notary Public of the
County and State aforesaid, certify that _______________________, personally appeared before me this day and acknowledged that
he is the __________ of _________________, a _____________________, and that by authority duly given and as the act of the limited
partnership, he executed of the foregoing instrument.

 

	 	Witness my hand and official seal, this the _____ day of ____________, 20___.
	 	 	 
	 	 	 
	 	Notary Public	 
	 	 	 
	 	 	 
	 	printed name of Notary	 
	My Commission Expires: _______________________

 

    	 

    	 

    

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

    	 

    	 

    

 

EXHIBIT B

FORM OF BILL OF SALE

 

THIS BILL OF SALE is made
as of the ___ day of _____, 2015, by _____________________________________________________having an office at ____________________________________
(“Seller”) to [_____________, a ______________] having an office at [__________________________________________]
(“Buyer”).

 

RECITALS:

 

WHEREAS, contemporaneously
with the execution and delivery of this Bill of Sale, Seller has sold and conveyed to Buyer the real property described in “Exhibit A”
attached hereto and made a part hereof and all buildings, structures and improvements located thereon by Special Warranty Deed
of even date herewith (all of such buildings, structures, improvements and real property collectively hereinafter referred to as
the “Real Property”); and

 

WHEREAS, as a part of the
consideration for the conveyance of the Real Property, Seller has agreed to convey to Buyer Seller’s interest in the items
of personal property, if any, that are owned by Seller and located in and on and used in connection with the Real Property;

 

NOW, THEREFORE, in consideration
of the sum of $10.00 and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Seller
does hereby (a) sell, assign, and convey to Buyer (without any representation or warranty whatsoever other than as set forth in
Purchase Agreement (as hereinafter defined) or in this Bill of Sale) (a) Seller’s right, title and interest, if any, in and
to the personal property, if any, listed on “Exhibit B” attached hereto owned by Seller and located on
or in or used solely in connection with the Real Property, excluding, however, any computer equipment, computer software and computer
hardware (but not the data pertaining to the operation of the Property); and (b) to the extent existing and assignable, Seller’s
right, title and interest in any intangible property now or hereafter owned by Seller and used solely in connection with the Real
Property and Personal Property, including all warranties, guaranties, governmental permits, approvals and licenses, the name “__________________________________”
and variations thereof and any other trade names and trademarks, websites, together with all related IDs, access codes, and passwords,
alarm codes, and all telephone numbers and listings associated with associated with the Land and Improvements, but excluding any
rights to the name “_________________” and the ___________ Trademarks. Capitalized terms used herein but not otherwise
defined shall have the meanings assigned to them in that certain Purchase and Sale Agreement dated __________ ___, 2015 between
___________ and _______________________________________(the “Original Buyer”), as assigned in part by Original
Buyer to Buyer (as assigned, the “Purchase Agreement”).

 

TO HAVE AND TO HOLD the
same unto Buyer, its successors and assigns, forever.

 

This Bill of Sale shall
be binding upon and shall inure to the benefit of Seller, Buyer and their respective successors and assigns.

 

This Bill of Sale shall
be governed by and construed in accordance with the laws of the state of _______________________________.

 

NOTWITHSTANDING ANYTHING
CONTAINED IN THIS BILL OF SALE TO THE CONTRARY, THIS BILL OF SALE IS SUBJECT TO ALL DISCLAIMERS AND QUALIFICATIONS BY SELLER SET
FORTH IN THE PURCHASE AGREEMENT WITH RESPECT TO THE PERSONAL PROPERTY, AND SUCH DISCLAIMERS AND QUALIFICATIONS ARE HEREBY INCORPORATED
HEREIN BY REFERENCE AND MADE A PART HEREOF.

 

[signature page to follow]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, Seller
has caused this Bill of Sale to be duly signed as of the day and year first written above.

 

	 	SELLER:
	 	 
	 	 
	 	a __________________________limited liability company

	 	 	 
	 	By:	 

	 	Name:	 
	 	Title:	 

 

Exhibit “A” -   Legal Description

 

Exhibit “B” -   Personal Property

 

    	 

    	 

    

 

EXHIBIT A

LEGAL DESCRIPTION

 

[See Attached]

 

    	 

    	 

    

 

EXHIBIT B

PERSONAL PROPERTY

 

[See Attached]

 

    	 

    	 

    

 

 

    	 

    	 

    

 

EXHIBIT C

FORM OF GENERAL ASSIGNMENT AND ASSUMPTION
AGREEMENT

 

THIS GENERAL ASSIGNMENT
AND ASSUMPTION AGREEMENT (“Assignment and Assumption”), made and entered into as of this ____ day of ________,
2015, by _____________________________________, having an at ______________________________________ (“Assignor”)
and [_____________, _________________] having an office [______________________________________] (“Assignee”).

 

WITNESSETH:

 

That Assignor for Ten and 00/100 Dollars ($10.00)
and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby conveys, grants,
bargains, sells, transfers, sets over, assigns, releases, delivers and confirms to Assignee, without representation, warranty or
covenant (except as expressly set forth in the Purchase Agreement or in this Assignment), (x) all of the lessor’s right,
title and interest in and to the leases and occupancy agreements identified on the list of existing leases attached as “Exhibit A”
hereto (the “Leases”) together with all tenant security and other refundable deposits held by Assignor relating
thereto, (y) all of Assignor’s right, title and interest in and to the agreements, documents and instruments identified on
“Exhibit B” hereto (the “Service Contracts”), and all of Assignor’s right, title
and interest in and to the agreements, documents and instruments identified on “Exhibit B” hereto (the
“Construction Contracts”).

 

Assignee hereby expressly assumes the obligation
for the performance of any and all of the obligations of Assignor under the Leases and Service Contracts in respect of the period
on or after the date hereof.

 

Seller shall indemnify, hold harmless and defend
Buyer from and against any and all claims, demands, causes of action, liabilities, losses, costs, damages and expenses (including
reasonable attorneys’ fees and expenses and court costs incurred in defending any such claim or in enforcing this indemnity)
that may be incurred by Buyer by reason of the assertion by any tenant under any of the Leases, or any party under the Service
Contracts or Construction Contracts that Seller has failed to perform, observe and comply with its obligations during the period
before the date hereof.

 

Buyer shall indemnify, hold harmless and defend
Seller from and against any and all claims, demands, causes of action, liabilities, losses, costs, damages and expenses (including
reasonable attorneys’ fees and expenses and court costs incurred in defending any such claim or in enforcing this indemnity)
that may be incurred by Seller by reason of the failure of Buyer to perform, observe and comply with the obligations under any
of the Leases, Service Contracts and Construction Contracts arising or accruing during the period from and after the date hereof.

 

Capitalized terms used herein but not otherwise defined shall have
the meanings assigned to them in that certain Purchase and Sale Agreement dated ______________ ___, 2015 between Assignor and ___________________________________________
(the “Original Buyer”), as assigned in part by Original Buyer to Assignee (as assigned, the “Purchase
Agreement”).

 

This Assignment and Assumption may be signed in any number of counterparts,
each of which shall be deemed to be an original, and all of which taken together shall constitute one and the same instrument.

 

This Assignment and Assumption shall be governed
by and construed in accordance with the laws of the State of North Carolina.

 

    	 

    	 

    

 

This Assignment and Assumption shall inure
to the benefit of all parties hereto and their respective heirs, successors and assigns.

 

THIS ASSIGNMENT AND ASSUMPTION IS
MADE ON AN “AS-IS, WHERE-IS, WITH ALL FAULTS” BASIS, WITHOUT RECOURSE AND WITHOUT ANY REPRESENTATION OR WARRANTY (EXPRESS
OR IMPLIED) WHATSOEVER EXCEPT AS MAY EXPRESSLY BE SET FORTH IN THE PURCHASE AGREEMENT OR IN THIS ASSIGNMENT AND ASSUMPTION.

 

In any action brought to enforce the obligations of Assignor under
this Assignment and Assumption, the judgment or decree shall be subject to Sections 15 and 16.02 of the Purchase Agreement.

 

[signature page to follow]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the
parties have executed this Assignment and Assumption as of the day and year first above written.

 

	 	ASSIGNOR:
	 	 
	 	 
	 	a _______________________ limited liability company

	 	 	 
	 	By:	 

	 	Name:	 
	 	Title:	 

 

	 	ASSIGNEE:
	 	 
	 	[_______________________],
	 	[____________________________]

	 	 	 
	 	By:	 

	 	Name:	 
	 	Title:	 

 

Exhibit “A” -   Leases

 

Exhibit “B” -   Service Contracts

 

    	 

    	 

    

 

EXHIBIT A

LEASES

 

[See Attached Rent Roll]

 

    	 

    	 

    

 

EXHIBIT B

SERVICE CONTRACTS

 

[See Attached]

 

    	 

    	 

    

 

EXHIBIT D

FORM OF TENANT NOTICE LETTER

 

[Name of Property]

 

__________ __, 2015

 

Dear Resident:

 

This is to advise you that as of __________,
2015, [[Name of Property] has been sold to [_________________] (“New Owner”).

 

All future payments of
rent and other charges due under your lease, including the rent payment due [___________ __, 2015], should be paid to New Owner
and delivered to the rental office. Your security deposit, if any, has also been transferred to New Owner, and New Owner will be
responsible for its return to you, subject to the terms of your lease agreement.

 

	 	Very truly yours,
	 	 
	 	_________________________________,
	 	a ___________________ limited liability company

	 	 	 
	 	By:	 

	 	Name:	 

	 	Title:	 

 

    	 

    	 

    

 

EXHIBIT E

FORM OF AFFIDAVIT PURSUANT TO FOREIGN

INVESTMENT AND REAL PROPERTY TAX ACT

 

____________, 2015

 

_________________________________ (the “Taxpayer”)

 

Section 1445 of the Internal
Revenue Code of 1986 (the “Code”) provides that a transferee of a U.S. real property interest must withhold
tax if the transferor is a foreign person. For U.S. tax purposes (including Section 1445), the owner of a disregarded entity (which
has legal title to a U.S. real property interest under local law) will be the transferor of the property and not the disregarded
entity. In order to inform [___________________, a ____________________] (the “Buyer”) that withholding of tax
is not required in the event of the transfer of the property described in Exhibit A attached hereto and incorporated herein
by reference (the “Property”), which Property is owned by ___________________________________, a limited liability
company (the “Seller”) and is the subject of a [FORM OF DEED] of even date herewith, the undersigned
hereby certifies, represents and warrants the following as the indirect owner of Seller:

 

		1.	The Taxpayer’s U.S. Employer Identification Number is _______________________.

 

		2.	The Taxpayer is not a disregarded entity as defined in Code Section 1.1445-2(b)(2)(iii).

 

		3.	The business address of the Taxpayer is:

 

_________________________________

 

		4.	The Taxpayer is not a "foreign person" within the meaning of Code Sections 1445 and 7710
(i.e., the Taxpayer is not a nonresident alien, foreign corporation, foreign partnership, foreign trust or foreign estate as those
terms are defined in the Code and regulations promulgated thereunder).

 

		5.	Seller is a limited liability company that is disregarded for federal income tax purposes; the
Taxpayer indirectly owns 100% of the membership interests in Seller. The U.S. Employer Identification Number for Seller is _______________________;
such identification number was obtained for banking or similar purposes and does not indicate that the Seller is other than
a disregarded entity.

 

The undersigned understands
that this affidavit may be disclosed to the Internal Revenue Service and that any false statement made within this certification
could be punished by fine, imprisonment, or both.

 

The undersigned understands
that the Buyer of the real property intends to rely on the foregoing representations in connection with the United States Foreign
Investment and Real Property Act.

 

Under penalties of perjury,
the undersigned declares that he has examined this certification and that to the best of his knowledge and belief it is true, correct
and complete, and the undersigned further declares that he has the authority to sign this document on behalf of the owner.

 

[signature page to follow]

 

    	 

    	 

    

 

Dated as of the
date first hereinabove written.

 

	 	 
	 	a ________________ 
	 	 

	 	By: 	 	 

	 	Name: 	 	 
	 	Title:  	 	 

 

EXHIBIT:

 

Exhibit A - Legal Description

 

    	 

    	 

    

 

EXHIBIT A

LEGAL DESCRIPTION

 

[See Attached]

 

    	 

    	 

    

 

EXHIBIT F

FORM OF TERMINATION OF MANAGEMENT AGREEMENT

 

This Termination of Management
Agreement is made as of this ___ of _______, 2015, by and between _____________________________, a __________________________
limited liability company (“Owner”) and ______________________________________ (“Manager”).

 

Owner and Manager hereby
terminate that certain Property Management Agreement dated as of ________________________________ pursuant to which Manager performs
certain property management services for Owner at the Property defined therein, which termination is effective as of the date hereof.

 

[signature page to follow]

 

    	 

    	 

    

 

Executed as of the date first above written.

 

	 	Owner:
	 	 
	 	________________________________
	 	a ___________________ limited liability company

	 	 	 
	 	By:	 

	 	Name:	 
	 	Title:	 

 

	 	Manager:
	 	 
	 	________________________________
	 	a _____________ limited liability company

	 	 	 
	 	By:	 

	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

EXHIBIT G

FORM OF INFORMATION FOR 1099-S FILING

 

INFORMATION FOR REAL ESTATE 1099-S REPORT FILING

AS REQUIRED BY THE INTERNAL REVENUE SERVICE

 

__________, 2015

 

Section 6045 of the Internal
Revenue Code, as amended by the Tax Reform Act of 1986, requires the reporting of information on certain real estate transactions.
From the information you provide below, a Form 1099-S will be produced and a copy of it will be mailed to the I.R.S. no later than
February 28 of next year and to you no later than January 31 of next year.

 

TRANSFEROR(S) NAME AND TAXPAYER IDENTIFICATION
NUMBER:

 

	 	 	 	 
	Name	 	Federal Employer	 
	 	 	I.D. Number  	 
	 	 	 	 
	 	 	 	 
	Name	 	Federal Employer	 
	 	 	I.D. Number  	 

 

MAILING ADDRESS (as of January 1 of next year):

 

	 	 	 
	Street	 	 

 

	 	 	 
	City/Town	State	Zip Code

 

	CLOSING DATE:	, 20__

 

	GROSS PROCEEDS:	 

 

ALLOCATION OF GROSS PROCEEDS AMONG

	MULTIPLE TRANSFERORS:	 

 

	DESCRIPTION OF PROPERTY:	SEE ATTACHED EXHIBIT A

 

DID THE TRANSFEROR RECEIVE OR WILL THE TRANSFEROR
RECEIVE PROPERTY OR SERVICES AS PART OF THE CONSIDERATION?

YES  ̈
NO x

 

[signature page to follow]

 

    	 

    	 

    

 

Under penalties of perjury, the undersigned
does hereby certify, as of the date first hereinabove written, that the number shown on this form is the correct Taxpayer Identification
Number of _______________________________ and ___________________________, a ______________ limited liability company, and
that the other information is correct. The undersigned acknowledges that it has received a copy of this information form and that
this information will appear on a Form 1099-S that will be sent to the undersigned and to the Internal Revenue Service.

 

	 	__________________________________
	 	a _________________ limited liability company
	 	 

	 	By:	 

	 	Name:	 
	 	Title:	 

 

	 	__________________________________
	 	a _________________ limited liability company
	 	 

	 	By:	 

	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

EXHIBIT A

LEGAL DESCRIPTION

 

[See Attached]

 

    	 

    	 

    

 

EXHIBIT H

FORM OF RECIPROCAL EASEMENT AGREEMENT

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

Exhibit “A”

 

INSERT Site Plan and/or Legal DescriptionExhibit 10.2

 

AMENDMENT TO PURCHASE AND SALE AGREEMENT

 

THIS AMENDMENT TO PURCHASE
AND SALE AGREEMENT (this “Amendment”), is made and entered into as of this 17th day of February, 2015 (the “Date
of Amendment”), by and between PARK KINGSTON INVESTORS, LLC, a North Carolina limited liability company (“Seller”),
and BLUEROCK REAL ESTATE, L.L.C., a Delaware limited liability company (“Buyer”).

 

WITNESSETH:

 

WHEREAS, Buyer and Seller
entered into that certain Purchase and Sale Agreement dated January 15, 2015 (the "Purchase and Sale Agreement")
for purchase of that certain apartment complex which is commonly known as Park & Kingston, located in the City of Charlotte,
Mecklenburg County, North Carolina, and which is more particularly described on Schedule B-1 and Schedule B-2 to the Purchase and
Sale Agreement;

 

WHEREAS, Seller and Buyer
desire to amend the Purchase and Sale Agreement to extend the Inspection Period until 5:00 p.m. on February 20, 2015; and

 

WHEREAS, except as otherwise
expressly provided for herein, capitalized terms used herein shall have the meaning as set forth in the Purchase and Sale Agreement.

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements contained herein, Seller and Buyer agree as follows:

 

1.          Review
Period Extension. Section 6.02 of the Purchase and Sale Agreement shall be amended by deleting the phrase "the date what
is thirty (30) calendar days after the Effective Date" and replacing it with "Friday, February 20, 2015", so that
the Purchase Price of the Property shall expire on Friday, February 20, 2015 at 5:00 p.m.

 

2.          Entirety
and Amendments. The Purchase and Sale Agreement, as amended hereby, embodies the entire agreement between the parties
and supersedes all prior agreements and understandings relating to the Property. There are no oral agreements or understandings
between the parties that are not expressly set forth in the Purchase and Sale Agreement, as amended hereby. 

 

3.          Continued
Effect. Except as amended hereby, the Purchase and Sale Agreement shall remain in full force and effect in accordance with
its original terms and conditions.

 

4.          Counterpart
and Facsimile Execution. This Amendment may be executed in a number of identical counterparts, and an electronic or facsimile
transmission shall be binding on the party or parties whose signatures appear thereon. If so executed, each of such counterparts
is to be deemed an original for all purposes, and all such counterparts shall, collectively, constitute one agreement.

 

[SIGANTURES ON NEXT PAGE]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Amendment under seal as of the Date of Amendment.

 

	 	SELLER:
	 	 
	 	PARK KINGSTON INVESTORS, LLC
	 	a North Carolina limited liability
	 	 	 
	 	By: 	/s/ George S. Warren
	 	Name:	George S. Warren
	 	Title:	Executive Vice President, Marsh Properties,
	 	 	LLC, its Manager
	 	 	 
	 	BUYER:
	 	 
	 	BLUEROCK REAL ESTATE, L.L.C., 
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Jordan Ruddy
	 	Name:	Jordan Ruddy
	 	Title:	Authorized Signatory

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