Document:

Exhibit

EXHIBIT 10.2

AGREEMENT OF SALE AND PURCHASE
THIS AGREEMENT OF SALE AND PURCHASE (this “Agreement”) is made as of June 15, 2016 ("Effective Date"), by and between GGT PATTERSON PLACE NC VENTURE, LLC, a Delaware limited liability company (“Seller”), and PATTERSON MULTIFAMILY DURHAM, LP, a Delaware limited partnership (“Buyer”).
W I T N E S S E T H:
Seller and Buyer, for and in consideration of the keeping and performing by the respective parties hereto of their respective obligations as hereinafter set forth, as well as for Ten and No/100 Dollars ($10.00) and other good and valuable consideration by each of the parties unto the other in hand paid simultaneously with the execution and delivery of these presents, the receipt whereof is hereby acknowledged, have covenanted and agreed, and by these presents do covenant and agree, each with the other, as follows:
1. THE PROPERTY
Upon the terms and provisions and subject to the conditions hereof, Seller shall sell and convey to Buyer, on the Closing Date (hereinafter defined), and Buyer shall purchase from Seller, for the Purchase Price herein set forth, all of Seller’s right, title and interest, in and to the property located in Durham County, North Carolina, which property is more particularly described in Exhibit A attached hereto together with the improvements located thereon (the “Improvements”), real property fixtures, easements, covenants, entitlements and other rights appurtenant thereto, and all the estate and rights of Seller in and to the same (the “Real Property”).  The Property shall include the following: 
(a) the Real Property and the Improvements;
(b) the Leases (as defined in Section 4(c) below) affecting the Property, including all security deposits in Seller's possession as of the Closing Date; the list of such Leases and security deposits as of the date of this Agreement is on the rent roll attached hereto as Exhibit B ("Rent Roll");
(c) all fixtures, equipment, furnishings, golf carts, motor vehicles and items of personal property and other tangible property, if any, located on or about the Property and owned by Seller as of the date of Closing; the list of such personal property as of the date of this Agreement is attached hereto as Exhibit C (the “Tangible Personal Property”); and
(d) all intangible personal property, if any and to the extent assignable, owned by Seller and arising out of or in connection with Seller’s ownership of the Real Property and the Tangible Personal Property, including (to the extent any such items exist) (a) Seller’s rights to any plans, specifications and drawings relating to the improvements including, without limitation, structural, HVAC, mechanical and plumbing plans and specifications (subject to the rights of the parties who prepared the same), construction drawings, rendering, plans submitted or filed with any governmental or quasi-governmental authority (collectively, the “Plans”), (b) Seller’s rights to any 

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current names, logos, designs, trademarks, service marks, copyrights, and trade names used solely in connection with the Improvements, including the name “Realm Patterson Place”, and any other names (to the extent that such exist) associated with the Property, (c) the goodwill of Seller in connection with the Real Property and the Improvements, (d) all advertising materials, marketing programs and strategies, and other similar rights relating solely to Seller’s use and operation of the Real Property, including any telephone numbers to the Property and all social media accounts and passwords to such accounts, if any, (e) all transferable licenses, permits, authorizations, approvals and certificates of occupancy issued by governmental or quasi-governmental authorities relating to the use, maintenance, occupancy and/or operation of the Real Property and the Tangible Personal Property; and (f) the URL for the Property (http://realmpattersonplace.com) and the right to use the photographs and content thereof relating to the Property, except for any Excluded Property (collectively, the “Intangible Personal Property”); provided, however, Intangible Property shall not include any name, license, permits, logo, sign, trademark, telephone listing or numbers of any member of Seller and of the name “Bainbridge” or any derivation thereof ("Excluded Property").
2. PURCHASE PRICE; DEPOSIT
(a) Upon execution of this Agreement, Buyer has delivered to Seller, and Seller acknowledges receipt of, One Hundred and No/100 Dollars ($100.00) (the "Independent Consideration"), as consideration for Buyer's right to purchase the Property and to terminate this Agreement prior to the expiration of the Inspection Period (as hereinafter defined) and for Seller's execution, delivery and performance of this Agreement.  The Independent Consideration is in addition to and independent of any other consideration or payment provided for in this Agreement, is non-refundable and shall be retained by Seller notwithstanding any other provision of this Agreement.
(b) The purchase price for the Property shall be Sixty Million and No/100 Dollars ($60,000,000) (the “Purchase Price”), subject to such credits, adjustments and prorations as are set forth herein.  The Purchase Price shall be payable by Buyer at the Closing (hereinafter defined) and shall be paid to Seller by no later than 2:00 p.m. Eastern Time in immediately available funds by wire transfer in an amount equal to the Purchase Price less the amount of the Deposit (as hereinafter defined) paid pursuant to this Agreement and any closing adjustments to which either Buyer or Seller are entitled pursuant to this Agreement.
(c) Buyer shall, no later than two (2) business days after the Effective Date, deliver to Stewart Title Guaranty Company (“Escrow Agent”) a good faith deposit in immediately available funds in the amount of Five Hundred Thousand and No/100 Dollars ($500,000) (“Initial Deposit”) (the Initial Deposit along with all interest earned thereon, is hereinafter sometimes collectively referred to as the “Deposit”).  The Deposit shall be held by Escrow Agent pursuant to the terms of this Agreement.  If the sale of the Property is consummated under this Agreement, the Deposit shall be paid to Seller and applied to the Purchase Price at Closing.  Notwithstanding anything to the contrary contained herein, the Deposit will be non-refundable to Buyer under all circumstances, other than a termination of this Agreement pursuant to and in accordance with: (i) Section 5(i), (ii) Section 6(c) or 6(d); (iii) Section 7(c); (iv) Section 8(a) or 8(c); or (v) Section 9(a).

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3. CLOSING AND RELATED MATTERS
(a) The delivery of the Deed (hereinafter defined) and other acts necessary to complete the transactions provided for in this Agreement shall be referred to herein as the “Closing.”  The Closing for the sale of the Property pursuant to the terms of this Agreement shall take place on or before June 22, 2016 (the “Closing Date”).  The Closing will be held at the offices of the title company, or at such other place as the parties may mutually agree, through an escrow closing arrangement, or effected via a “mail away” closing (i.e. in which funds are sent via wire transfer and closing documents are delivered via overnight delivery or courier delivery service to the Escrow Agent, each to be held subject to an escrow agreement reasonably acceptable to Seller and Buyer).  At Closing, executed documents will be hand-delivered or sent via overnight courier delivery and the Purchase Price will be sent via wire transfer.
(b) At Closing, Seller shall execute and deliver to Buyer a (i) closing statement reasonably acceptable to Buyer, (ii) the Deed, (iii) Seller’s Affidavit and Non-Foreign Certificate (in a form sufficient to cause the Title Company to delete the preprinted exceptions on the Title Commitment [as hereinafter defined] with regard to gap, party in possession [subject to rights of Tenants as set forth on a rent roll to be attached to such affidavit] and mechanics’ liens), and such other affidavits and statements reasonably requested by the Title Company (iv) an “as-is” Bill of Sale and General Assignment covering all Tangible Personal Property and Intangible Tangible Personal Property, in the form attached hereto as Exhibit F; (v) Assignment and Assumption of Leases, in the form attached hereto as Exhibit E (“Assignment of Leases”); (vi) a tenant letter notifying all Tenants (as hereinafter defined) of the change in ownership; (vii) originals or, to the extent originals are not in Seller’s possession or control, copies of all Leases (as hereinafter defined) and security deposits applicable thereto in Seller's possession; (viii) an assignment and assumption of service contracts, in the form attached hereto as Exhibit H ("Assignment of Contracts"); (ix) evidence of good standing of Seller, and evidence of authority to perform under this Agreement; (x) a survey affidavit of no change in form reasonably acceptable to Seller and the Title Company, sufficient to have the standard survey exception omitted; (xi) an updated Rent Roll, certified as true and correct in all material respects; (xii) all keys, property files and tenant files in Seller’s possession or control; (xiii) such other deliveries reasonably requested by the Title Company as may be reasonably necessary in order to completed the transaction herein provided;  (xiv) evidence of the termination of Service Contracts, if applicable, in accordance with Section 4(b); and (xv) the executed Estoppel (as hereinafter defined), to the extent in Seller’s possession or control.  At Closing, Buyer shall pay to Seller the Purchase Price specified in Section 2 hereof and each party shall execute and deliver all documents reasonably necessary or advisable to consummate the transactions contemplated hereby, including a Closing Statement, the Assignment of Leases, the Assignment of Warranties (as hereinafter defined), the Assignment of Contracts, and appropriate entity resolutions and approvals.
(c) At Closing, Seller shall, at Seller’s sole cost and expense, and shall cause Bainbridge Mid-Atlantic Construction, LLC, a Florida limited liability company ("General Contractor") to assign to Buyer, to the extent assignable (and Seller shall obtain all necessary consents for such assignments), all of the warranties, guarantees, indemnities, bonds or recourse rights, if any, retained by Seller and/or General Contractor against any third party subcontractors engaged by Seller and/or General Contractor in connection with the construction of the Improvements (the "Construction Contracts" and such warranties, guarantees, indemnities, bonds or recourse rights being the "Assigned Warranties"), in the form attached hereto as Exhibit G 

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("Assignment of Warranties").  For the avoidance of doubt, (i) Seller nor the General Contractor are assigning to Buyer the Construction Contracts; and (ii) Assigned Warranties shall not include any warranties, guarantees, indemnities, bonds or recourse rights, if any, retained by Seller against General Contractor.  Seller, nor General Contractor, makes any representation or warranty to Buyer that such Assigned Warranties exist or, if they do exist, are assignable by Seller and/or General Contractor to Buyer and Buyer acknowledges the same.  
(d) At Closing, Seller shall pay, from the proceeds of the Closing, all transfer taxes and documentary stamps taxes in connection with the transaction contemplated in this Agreement, all costs incurred to repay any liens voluntarily created by Seller on the Property (and involuntary liens, subject to the terms of Section 6(e)(ii)herein), and one-half of the settlement fees charged by the Title Company (as hereinafter defined) in order to serve as the closing agent.  Buyer shall pay the costs of recording the Deed, recording fees and taxes associated with any financing for the Property, one-half of any settlement fees charged by the Title Company in order to serve as the closing agent, expenses associated with any due diligence and inspection studies relating to the Property, and the costs associated with the Survey and title insurance for the Property.  Except as otherwise provided herein, each party shall pay for the services of its own legal counsel.
4. CLOSING PRORATIONS
(a) Property Taxes.  General real estate taxes and assessments imposed by governmental authority and any assessments imposed by private covenant constituting a lien or charge on the Real Property for the then current calendar year or other current tax period (collectively, “Taxes”) not yet due and payable shall be prorated as of the Apportionment Time (hereinafter defined), based on the maximum allowable discount.  If the Closing occurs prior to the receipt by Seller of the tax bills for the calendar year or other applicable tax period in which the Closing occurs, Buyer and Seller shall prorate estimated Taxes for such calendar year or other applicable tax period based upon the assessed values and tax rates in the 2015 calendar year tax bill, and, thereafter, promptly re-prorated upon the availability of actual bills for the applicable period.  This provision shall survive the Closing.
(b) Operating Expenses.  Seller shall endeavor and use commercially reasonable efforts to cause all meters for electricity, gas, water, sewer or other utility usage at the Property to be read on the day before the Closing Date.  Seller will pay all charges for such utility charges which have accrued on or prior to the Apportionment Time.  If the utility companies are unable or refuse to read the meters on the Closing Date, all charges for such utility charges to the extent unpaid will be prorated and adjusted as of the day before the Closing Date based on the most recent bills and other reasonable factors.  Seller shall retain utility deposits and deposits with governmental and quasi-governmental authorities, and initial inducement payments made to Seller by vendors.  All other operating expenses of the Property (which are customarily adjusted for in a transction of this nature), including association maintenance charges and special assessments, if applicable, and costs pursuant to the service contracts in effect as of the Closing Date and being assigned to Purchaser in accordance with the terms hereof (but not including the Seller's management agreement which Seller shall terminate at Closing), the list for which as of the date hereof being attached hereto as Exhibit D ("Service Contracts"), shall be prorated between Seller and Buyer as of 12:01 a.m. the day of the Closing Date such that Seller shall be deemed the owner of the Property for the day prior to the Closing Date and Buyer shall be deemed the owner of the Property commencing as of the day of Closing; provided, however, there will be no proration of insurance premiums, it being agreed 

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that Buyer will be responsible to obtain its own insurance as of the Closing.  Prior to the expiration of the Inspection Period, Buyer may provide written notice to Seller of Buyer's request for Seller to cancel any Service Contracts, and Seller shall, at or prior to the Closing cancel all such Service Contracts at Buyer's sole cost and expense, including, without limitation, all cancellation fees. Buyer shall assume any Service Contract in effect as of the Closing other than those designated by Buyer in writing for termination by Seller prior to the expiration of the Inspection Period, provided however, Buyer shall be required to assume at Closing any Service Contract not susceptible of being terminated prior to Closing.  Notwithstanding the foregoing, Seller shall retain and reserve from the sale all (i) utility deposits and deposits with governmental and quasi-governmental authorities, (ii) non-refundable tenant fees such as amenity fees, cleaning fees, redecorating fees and pet fees, other than non-refundable tenant fees collected by Seller for the month of Closing, and (iii) initial inducement payments made to Seller by vendors.
(c) Tenant Provisions. The Property is occupied by tenants (collectively, the “Tenants”), and subject to one or more leases (collectively, the “Leases”).  
(i) Rents.  Collected rents and collected other charges payable under the Leases for the month of Closing shall be prorated between Seller and Buyer as of 11:59 p.m. the day immediately before the Closing Date ("Apportionment Time") such that Seller shall be deemed the owner of the Property for the day prior to the Closing Date and Buyer shall be deemed the owner of the Property commencing as of the day of Closing.  Buyer’s portion of prepaid rents, if any, under the Leases shall be credited to Buyer at Closing.  
(ii) Security Deposits.  Seller shall credit to Buyer, at Closing, an amount equal to the security deposits under the Leases in Seller's possession as of the Closing Date (to the extent such security deposits are not applied against delinquent rents, damage or otherwise as provided in the Leases); together,  in  all  cases,  with  any  interest  payable  to  the Tenants thereunder as may be required by their respective Lease or Law; provided that Seller shall retain non-refundable tenant fees such as cleaning fees and pet fees which are not being apportioned at Closing in accordance with the terms hereof.  
(iii) Delinquent Rents.  All uncollected rents for the months prior to the month in which the Closing occurs and all uncollected rents through Closing (“Delinquent Rents”), shall remain Seller’s property, and neither Buyer nor Seller shall receive any proration or credit therefor at Closing.  Any and all Delinquent Rents received by Buyer after the Closing Date shall be first applied to any rent owed by such Tenant to Buyer and after such Tenant is current in its rent to Buyer then the remainder, if any, shall be promptly remitted to Seller.  No portion of Delinquent Rents attributable to a particular Tenant shall be applied against the rents or Delinquent Rents attributable to another Tenant.  Buyer shall not be obligated to file suit to collect the Delinquent Rents but shall use commercially reasonable efforts to collect the same for a period of three (3) months after the Closing, and Seller shall not have the right to sue any tenants for any Delinquent Rents or other sums due Seller as of the Closing Date.  This provision shall survive Closing.
(iv) New Leases; Modifications; Operations. Prior to the Closing, Seller will continue to operate and maintain the Property prior to the Closing in a manner consistent with its current operating procedures, which may include entering into new leases for a term not to exceed one (1) year and at market rates and/or modifying any existing Leases, provided it is so modified at market rates.  Notwithstanding anything to the contrary contained herein, Seller shall not evict any 

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Tenant or apply any security deposit under any Lease from the Effective Date, other than in a manner consistent with its current operating procedures.
(v) Rent Ready Credit.  At the time of Closing, Seller shall cause all apartment units in the Property to be in a market rent-ready condition according to normal industry practice (including, without limitation, painted, cleaned, carpeted, with all appliances in working condition).  With respect to each apartment unit that is not in such a rent-ready condition at the Closing, as reasonably determined by Buyer and Seller, Buyer shall receive a credit against the Purchase Price in the sum of One Thousand Dollars ($1,000).
(d) Final Prorations.  Any errors in the apportionments pursuant to this Section 4 shall be corrected by appropriate re-adjustment between Seller and Buyer post-closing, provided that notice of any such error, with supporting calculations, shall be given by Buyer to Seller or by Seller to Buyer, as the case may be, no later than (90) ninety days after the Closing, if ascertainable within such period, it being understood and agreed that if any such items or errors are not ascertainable at the Closing or within (90) ninety days thereafter, the apportionment shall be made subsequent to the Closing when the charge or error is determined  Payments in connection with the final adjustment shall be due within 30 days of written notice, but, in all events (other than the re-proration of Taxes, if applicable), on or before one hundred twenty (120) days after the Closing. Seller shall have reasonable access to, and the right to, inspect and audit Buyer's books to confirm the final prorations.  This Section shall survive the Closing for one hundred twenty (120) days.
5. INSPECTION PERIOD 
(a) Subject to the terms of this Section 5, commencing upon the Effective Date and ending at 5:00 PM (Eastern Standard Time) on June 17, 2016 (“Inspection Period”), Buyer and its agents and representatives shall have the right to make, during normal business hours and at Buyer's sole expense, any investigations regarding the Property, including reviewing contracts, leases and the books and records relating to the Property and conducting a so-called phase I environmental site assessment ("Phase 1") and a physical conditions report; provided, however, Buyer agrees to use commercially reasonable efforts not to cause any damage to the Property or unreasonably interfere with any tenant’s possession and/or Seller’s operations at the Property.  Buyer will not conduct any on-site inspections without Seller or its representative first being afforded an opportunity to be present, and Buyer shall provide Seller with not less than two (2) business days’ prior notice (which notice may be delivered by email to jwright@bainbridgere.com or telephonically to Jake Wright at (301) 222-0060)) in advance of the date for its inspections of the Property.  Buyer agrees that Buyer shall not contact or interview any tenant of the Property.  If Buyer intends to carry out any invasive test, inspection or investigation involving the physical disturbance of any portion of the Property, Buyer shall give Seller at least two (2) business days prior notice of such intention and the conduct of such test, inspection and investigation shall be subject to Seller's reasonable regulations; provided, however, that in no event shall Buyer be permitted to perform soil borings or other invasive or intrusive tests on the Property without Seller’s prior written consent, which consent may be withheld by Seller in Seller's sole and absolute discretion.  Any party performing inspections at the Property on behalf of Buyer shall be properly licensed and maintain liability insurance in commercially reasonable amounts, but in no event less than Two Million Dollars per occurrence.  
(b) Buyer shall have the right to terminate this Agreement for any reason or no reason at all, in its sole discretion, by giving written notice of such election to Seller on any day 

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prior to and including the final day of the Inspection Period, in which event the Deposit shall be released to Seller and, except as expressly set forth herein, neither party shall have any further liability or obligation to the other hereunder.  In the absence of such written notice, the contingency provided for in this Section 6(b) shall no longer be applicable, Buyer shall be deemed to have waived its right to terminate under this Section 6(b) and this Agreement shall continue in full force and effect.  In the event Buyer timely elects to terminate this Agreement during the Inspection Period as permitted above, and as additional consideration for Seller granting Buyer the foregoing condition precedent,  Buyer shall deliver to Seller with Buyer’s notice of termination copies a copy of all third party reports obtained by Buyer in connection with Buyer’s inspections of the Property; provided that such reports shall be delivered without representation or warranty as to accuracy or completeness thereof.  This provision shall survive the termination of this Agreement.
(c) Buyer shall repair any damage to the Property resulting from any inspections, studies or tests performed by Buyer, except to the extent such damage results from the mere discovery of a condition that existed at the Property prior to any entry by Buyer, to the extent such pre-existing condition is not further disturbed as a result of Buyer’s inspections.  In connection with such entry onto the Property, Buyer agrees at all times during the entries onto the Property that it will cause its agents to, maintain in effect commercial general liability insurance on an occurrence basis (including contractual liability, contractor’s protective liability, personal injury and property damage coverage) in a combined single limit of at least Two Million Dollars ($2,000,000.00), and provide Seller with evidence of such insurance coverage prior to any entry onto the Property.  Such insurance may be maintained directly by Buyer or by Buyer’s affiliates, members or contractors.  Before any such entry, Buyer shall provide Seller with a certificate of insurance naming Seller as an additional insured and with insurance limits as provided for herein, if Seller requests.
(d) Buyer will not permit any mechanics' lien or liens to be placed upon the Property relating to Buyer’s activities hereunder.  Buyer hereby agrees to indemnify, defend and hold Seller and Seller's agents, employees, contractors, shareholders, officers and directors (collectively herein referred to as the "Seller Parties") harmless from and against any and all liens for any materials or services furnished to the Property by, or on behalf of, Buyer.  If any lien is claimed against the Property for services or materials provided at the request of, or for the benefit of, Buyer, then Buyer shall promptly take whatever action is necessary to release and remove such lien as soon as possible, but not later than fifteen (15) days after the date the lien was filed.  If such lien has not been removed within such fifteen (15) day period, Seller may take whatever action, in its sole discretion and at Buyer' sole cost and expense, that it deems reasonably necessary to release and remove the lien.
(e) Notwithstanding anything contained herein to the contrary, Buyer covenants and agrees to indemnify, defend and hold Seller and the Seller Parties harmless from any and all injury to any person, loss of life or property damage arising out of any action or inaction of Buyer or its agents or independent contractors in connection with Buyer’s investigation of the Property, excluding consequential, subsequent or punitive damages.  In conducting any physical investigations and review of the Property, Buyer and its agents and representatives shall: (i) use commercially reasonable efforts to not damage any part of the Property nor conduct any activities precluded by this Agreement; (ii) use commercially reasonable efforts to not injure or otherwise cause bodily harm to Seller or any other third party; (iii) promptly pay when due the costs of all investigations done with regard to the Property; (iv) not permit any liens to attach to the Property by reason of the exercise of Buyer’s rights hereunder; and (v) upon completion of any inspection by 

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Buyer and/or its agents or independent contractors, Buyer shall restore any damage to the Property caused by same.  Notwithstanding anything herein to the contrary, Buyer shall not be liable for matters occurring to the extent the result of the gross negligence or intentional act of the Seller Parties, or for mere disclosure to Seller of the results of such inspections and investigations.
(f) Seller has previously made or will make available to Buyer for Buyer's review at the Property, those certain items and information pertaining to the Property described in Schedule 5(f) attached hereto and made a part hereof, and such additional information as Buyer may reasonably request (collectively, the “Property Information”).  The Property Information is being delivered to Buyer as an accommodation only and Seller does not represent or warrant the truth, accuracy, completeness or correctness of any such Property Information or any other information delivered to Buyer from any broker on Seller’s behalf.  Buyer acknowledges and agrees that the Property Information delivered or given by Seller to Buyer in connection with the transaction contemplated hereby is provided to Buyer as a convenience only and that any reliance on or use of such Property Information by Buyer shall be at the sole risk of Buyer.  
(g) Buyer acknowledges and agrees that all of the Property Information delivered by or on behalf of Seller and any other information obtained by Buyer regarding the Property as a result of Buyer’s physical inspection of the Property other than information that (i) is or becomes generally available to the public other than as a result of a disclosure by Buyer or its representatives, (ii) was or becomes available on a non-confidential basis from a source other than Buyer or its representatives, or (iii) is independently developed from a non-confidential source by Buyer or its representatives ("Confidential Information") shall be and remain confidential.  Buyer further agrees and acknowledges that if any such Confidential Information is disclosed to third parties, to Seller’s employees or Seller’s tenants, Seller may suffer damages and irreparable harm.  Buyer expressly acknowledges, covenants and agrees (a) that Buyer shall not make any press release or other public disclosure concerning the transaction contemplated by this Agreement and Buyer shall not disclose any of the contents or information contained in the Confidential information to any party other than Buyer's attorney, accountants, employees, partners, professional firms performing inspections and report reviews, prospective investors and prospective lenders or as otherwise may be required by law; and (b) that in making any disclosure of such information as permitted hereunder, Buyer shall advise such third parties of the confidentiality of such information and the potential of damage to Seller and the liability of Buyer and such third party as a result of any disclosure of such information by such third party and shall use commercially reasonable efforts to cause such third party's compliance.
(h) It is expressly acknowledged by Buyer that the Closing of the transactions contemplated by this Agreement is not subject to any financing contingency and that no financing for this transaction shall be provided by Seller.  Without limiting the foregoing, Buyer agrees that the ability or inability of Buyer to obtain debt, equity investments or other financing in order to pay all or any part of the Purchase Price shall not be a contingency or condition to any of Buyer’s obligations under this Agreement.

(a) Subject to the remaining terms of this Section 5, prior to the end of the Inspection Period, Buyer shall (at Buyer's sole cost and expense) procure from a licensed, insured environmental consultant of its choice the Phase 1 of the Property.  If the Phase 1 confirms the existence of a 

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“recognized environmental condition” with respect to the Property which would materially and adversely affect the Property, as reasonably determined by Buyer, then Buyer shall have the right to object to said condition ("Adverse Environmental Condition") by providing written notice to Seller ("Environmental Objection Notice"), specifying the exact nature and scope of the Adverse Environmental Condition, no later than five (5) days prior to the end of the Inspection Period.  If Buyer timely delivers the Environmental Objection Notice, then Seller shall, within five (5) days thereafter, notify Buyer as to whether Seller will attempt, in its sole discretion, to cure the Adverse Environmental Condition (it being understood that Seller has no obligation to do so).  In the event that Seller fails to timely notify Buyer, in writing, of Seller’s intention to cure the Adverse Environmental Condition, then Seller shall be deemed to have elected not to so cure.  If by Seller’s written notice or silence Seller elects not to attempt to cure the Adverse Environmental Condition, then Buyer may, on or prior to the end of the Inspection Period, deliver written notice to Seller indicating Buyer’s election to (A) terminate this Agreement and receive a refund of the Deposit, or (B) proceed to close without any reduction in the Purchase Price.  In the event that Buyer fails to notify Seller, in writing, of Buyer’s intention to proceed under subsection (A) or (B) above, then Buyer shall be deemed to have elected to proceed under subsection (B) above.  If Seller timely elects to cure the Adverse Environmental Condition, then Seller shall have thirty (30) days from the end of the Inspection Period ("Environmental Cure Period") to commence to cure (without any obligation to actually cure, or expend funds or litigate to cure) the Adverse Environmental Condition in accordance with applicable environmental laws (and the Closing may be extended by Seller up to such thirty (30) day period to the extent necessary to complete such cure).  If the Adverse Environmental Condition is not cured by the end of the Environmental Cure Period, then Buyer shall have the right, at its option, by delivering written notice to Seller within five (5) days following the expiration of the Environmental Cure Period, to either (x) terminate this Agreement, whereupon the Deposit shall be immediately returned to Buyer, or (y) not terminate this Agreement (it being agreed that Buyer's failure to deliver any such notice within such five (5) day period shall be deemed Buyer's election under this clause (y)) and proceed to Closing on the date which is ten (10) days following the expiration of the end of the Environmental Cure Period.
(a) The terms of this Section shall survive any termination of this Agreement or the Closing.
6. TITLE TO PROPERTY
(a) Status of Title.  At Closing, Seller shall convey fee simple title to Buyer by means of a Special Warranty Deed (“Deed”), in the form attached hereto as Exhibit I, subject only to the following items (collectively, the “Permitted Exceptions”): (i) any exception arising out of an act of Buyer or its representatives, agents, employees or independent contractors; (ii) zoning and subdivision ordinances and regulations; (iii) rights of tenants under Leases; (iv) real estate taxes which are not yet due and payable (subject to apportionment as provided for herein); (v) assessments and special district levies (subject to apportionment as provided for herein); (vi) zoning and other regulatory laws and ordinances affecting the Property; (vii) and any other matters of record to which Buyer does not timely raise a Title Defect, or, having objected, Buyer waives or is deemed to have waived in accordance with the provisions of Section 6(c) below; and (viii) those matters set forth in Exhibit J attached hereto.  
(b) Title Evidence.  Buyer has, prior to the Effective Date, ordered: (i) a title insurance commitment for an ALTA Owner’s Policy of title insurance issued by Madison Title 

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Agency (“Title Company”), as agent for the Escrow Agent in the amount of the Purchase Price for purposes of insuring title to the Property (“Title Commitment”), and (ii) an update to Seller's survey of the Property ("Existing Survey") to be made by a registered professional surveyor licensed to practice in the State of North Carolina, to be certified to Buyer and the title company (“Survey”).  
(c) Defects and Cure.   Buyer shall have until 5:00 PM (Eastern Standard Time) on June 14, 2016 to notify Seller in writing (which may be sent via email to Seller’s attorney) (“Title Defect Notice”) of any objections or requirements pertaining to the Title Commitment and Survey (collectively, “Title Defects”); provided, however, that Buyer shall not be entitled to object to any matters shown on the Existing Survey or any of the Permitted Exceptions (which shall not be deemed Title Defects).  In the event that Buyer fails to provide a Title Defect Notice within such time period, then Buyer shall be deemed to have accepted all matters pertaining to the Title Commitment and the Survey, and such matters shall be deemed Permitted Exceptions hereunder. If Buyer timely delivers the Title Defect Notice, then Seller shall within two (2) days thereafter notify Buyer of any Title Defects which Seller is unable or unwilling to cure, it being understood that Seller has no obligation to do so other than as expressly hereinafter set forth in this Section 6.  In the event that Seller fails to notify Buyer, in writing, of Seller’s intention to cure any Title Defects, Seller shall be deemed to have elected not to cure such Title Defects.  If by Seller’s written notice or silence Seller elects not to attempt to cure any of Title Defects, then Buyer may, on or prior to the end of the Inspection Period, deliver written notice to Seller indicating Buyer’s election to (A) terminate this Agreement, whereupon the Deposit shall be immediately returned to Buyer and the parties hereto shall not have further obligations to the other party hereunder except as expressly provided herein, or (B) proceed to close without any reduction in the Purchase Price, in which event any Title Defects (as of the end of the Inspection Period) shall be deemed Permitted Exceptions.  In the event that Buyer fails to notify Seller, in writing, of Buyer’s intention to proceed under subsection (A) or (B) above, then Buyer shall be deemed to have elected to proceed under subsection (A) above.  As to those Title Defects agreed to be cured by Seller in writing, curing such Title Defects shall be a condition precedent to Buyer’s obligation to close and shall be cured and removed by Seller on or before the Closing Date, provided that Seller shall have the right to extend the Closing Date for an additional thirty (30) days as to cure such matters.  If Seller fails to remove, discharge or correct the agreed Title Defects as of the Closing Date, then Buyer may, at its option and as its sole remedy, either: (i) terminate this Agreement by written notice to Seller on the Closing Date; or (ii) proceed to close and accept title “as is” without reduction in the Purchase Price.  If Buyer shall elect to terminate this Agreement pursuant to this Section 6(c), then the Deposit shall be repaid to Buyer and thereafter this Agreement shall be null and void and of no further force and effect, except for any obligations hereunder that shall survive the termination of this Agreement. 
(d) Subject to Section 6(e) below, in the event any agreements are filed of record or any liens are created or become effective after the effective date of the initial Title Commitment and such agreements or liens are not created by, through or under Buyer, Buyer may give Seller written notice of such additional objections (“Additional Objections”) within three (3) days of its obtaining knowledge of the Additional Objections, but in no event later than the Closing Date.  If by the Closing Date Seller has not cured such Additional Objection (without any obligation to do so, subject to Section 6(e) below), Buyer may (as its sole and exclusive remedy) terminate this Agreement by delivering written notice thereof to Seller on the Closing Date, in which event the Deposit shall be returned to Buyer and neither party shall have any further obligations hereunder (except with respect 

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to obligations that expressly survive the termination hereof), failing which, such additional matters shall be deemed to be Permitted Encumbrances.  
(e) Notwithstanding anything contained herein to the contrary, Seller shall have no obligation to take any steps, bring any action or proceeding or incur any effort or expense whatsoever to eliminate, modify or cure any objection Buyer may have pursuant to Section 6(c) hereof or otherwise except with respect to the objections which Seller has agreed to attempt to remove pursuant to Section 6(c) hereof; provided, however, at the Closing, Seller agrees, at Seller's sole cost and expense, (i) to cause to be released all mortgages and all other monetary liens voluntarily created by Seller that affect the Property; (ii) to cause to be released, removed, satisfied or insured over any other monetary liens that are not voluntarily created by Seller that affect the Property, except that as to the monetary liens described in this subsection (ii), Seller is not required to expend more than Three Hundred Thousand Dollars ($300,000) in the aggregate; and (iii) to cause to be terminated that certain Notice of Contract recorded July 25, 2013 in Book 7324, Page 999.
7. REPRESENTATIONS, WARRANTIES AND COVENANTS
(a) Seller hereby represents and warrants to Buyer as of the date hereof and as of the Closing Date as follows:
(i) Seller is s a limited liability company, duly organized, validly existing and in good standing under the laws of the state of its organization and the state in which the Property is located. Seller has made all filings necessary in the state in which the Property is located to own and operate its Property. Seller has the full right, power and authority to enter into this Agreement and to sell and convey the Property to Buyer as provided herein and to carry out its obligations hereunder. Each of the persons and entities signing this Agreement and the other documents contemplated by this Agreement on behalf of Seller has the legal right, power and authority to bind Seller.
(ii) None of the execution, delivery or performance of this Agreement by Seller does or will, with or without the giving of notice, lapse of time or both (i) violate, conflict with or constitute a default under (A) the organization documents of Seller or any material agreement, instrument or other document to which Seller is a party or by which it is bound, or (B) any judgment, decree, order, statute, injunction, rule or regulation of a governmental unit applicable to Seller or (ii) result in the creation of any lien upon the Property. This Agreement and all documents, required hereby to be  executed  by  Seller  are  and  shall  be, to Seller's knowledge,  valid,  legally  binding  obligations of and enforceable against Seller in accordance with their terms.
(iii) Except for the Permitted Exceptions, the Leases and the Service Contracts, there are no other contracts or agreements related to the use or operation of the Property which would be binding upon Buyer after the Closing.
(iv) Seller has received no notice of any pending condemnation, eminent domain or similar proceedings affecting the Property or any portion thereof, and to the best of Seller’s knowledge, no such proceeding is contemplated or threated by any governmental or quasi-governmental authority. 
(v) As of the Effective Date, Seller has received no written notice of any actions, suits, proceedings or claims pending, or to the best of Seller's knowledge, contemplated or 

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threatened, before any commission, regulatory body, administrative agency or other governmental body with respect to or in any manner affecting the Property, and, to Seller's knowledge, there is no basis for any such action, suit, proceeding or claim.   Seller has received no written notice of any actions, suits, proceedings or claims pending, or to the best of Seller's knowledge, contemplated or threatened, before any commission, regulatory body, administrative agency or other governmental body with respect to or in any manner affecting the ability of Seller to consummate the transaction contemplated by this Agreement and, to Seller's knowledge, there is no basis for any such action, suit, proceeding or claim.  Except for unlawful detainer, eviction or similar actions against Tenants that are brought in the ordinary course of Seller's operation of the Property, as of the Effective Date, there are no actions, suits or proceedings pending by Seller in connection with all or any portion of the Property or Seller's ownership, rights, use, development or maintenance thereof, including tax reduction proceedings.
(vi) As of the Effective Date, Seller has received no written notice and has no knowledge to the effect that the Property is not in material compliance with applicable laws and ordinances or any applicable covenants, restrictions or agreements or that there has been or may be an investigation of the Property by any governmental authority having jurisdiction over the Property.
(vii) As of the Effective Date, Seller has not received written notice from any governmental authority of any material violation of any federal or municipal laws, ordinances, orders, regulations and requirements affecting the Property or any portion thereof (including the conduct of business operations thereon) which are unresolved.
(viii) Seller is not a “foreign person” as defined in Section 1445 of the Internal Revenue Code of 1986, as amended, and the Income Tax Regulations thereunder.
(ix) No petition in bankruptcy (voluntary or otherwise), attachment, execution proceeding, assignment for the benefit of creditors, or petition seeking reorganization or insolvency, arrangement or other action or proceeding under federal or state bankruptcy law is pending against or contemplated (or, to Seller's knowledge, threatened) by or against Seller or any general partner or managing member of Seller.
(x) There are no employees of Seller employed in connection with the use, management, maintenance or operation of the Property whose employment will continue after the Closing Date. There is no bargaining unit or union contract relating to any employees of Seller.
(xi) The Rent Roll attached hereto as Exhibit "B" is true, correct and complete in all material respects in effect as of the Effective Date, and the Rent Roll to be certified pursuant to Section 3(b) will be true, correct and complete in all material respects in effect as of the Closing Date. Seller has made available its leasing files, which are maintained in the ordinary course of business.
(xii) The Service Contracts listed on Exhibit "D" annexed hereto is a true, correct and complete list of all material management, service, supply, repair and maintenance agreements, equipment leases and all other contracts and agreements (excluding the Leases and the Permitted Exceptions) with respect to or affecting the Property as of the Effective Date. True, correct and complete copies, in all material respects, of all Service Contracts (or written descriptions of oral Service Contracts) have been delivered to Buyer. 

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(xiii) The operating statements attached hereto as Schedule 7(xiii) (the “Operating Statements”) are true and complete copies, in all material respects, of the same.
(xiv) True, correct and complete copies, in all material respects, of the Construction Contracts and the Assigned Warranties have been delivered to Buyer
(i) Seller has delivered the estoppel certificate  (the  “Estoppel”) attached hereto as Schedule 7(xv) to the counterparty's counsel under that certain Reciprocal Easement Agreement recorded June 26, 2013 in Book 7302, Page 268 (the “REA”) and has requested (and will continue to request) that such counterparty execute and deliver the same to Seller.   To Seller's knowledge, Seller is not in default of any of its material obligation under the REA and Seller has substantially completed all of the improvements as required under Sections 2(b) and 3(b) of the REA.
(ii) To Seller’s knowledge, Seller has performed all of its material obligations on the part of Seller to be performed under that certain Stormwater Facility Agreement and Covenants (“Stormwater Agreement”), dated July 19, 2013, including, without limitation, the completion of the construction of the Facility/ies (as defined in the Stormwater Agreement); Seller is not in default under any of its material obligations under the Stormwater Agreement; and Seller has not received a demand, (and is otherwise not aware of any potential demand), from the City (as defined in the Stormwater Agreement) for any contributions by Seller to the Fund (as defined in the Stormwater Agreement). 
(iii) To Seller's knowledge, each of the Service Contracts is in good standing and in full force and effect. To Seller's knowledge, Seller is not in default under any of the Service Contracts.
(iv) Seller has delivered, or made available to Buyer, true, accurate and complete copies, in all material respects, of all of the Leases entered into prior to the Effective Date.  
Whenever reference is made in this Agreement to the knowledge of Seller, or to Seller receiving notice, such references shall be deemed limited to the collective actual and not the implied or imputed knowledge of Thomas Keady and Paul DeCain (collectively, the “Knowledge Parties”), without independent investigation other than reasonable inquiry of Seller’s property manager. The Knowledge Parties are representatives of Seller who are primarily responsible for the oversight of Seller's ownership, operation, management and leasing of the Property.  Under no circumstances shall the Knowledge Parties have any personal obligations or liabilities under this Agreement or otherwise and Buyer waives all rights to sue or seek personal judgment against the Knowledge Parties.
(b) Buyer hereby represents and warrants to Seller that Buyer (i) has the full right, power and authority to enter into this Agreement and to purchase the Property from Seller as provided herein and to carry out its obligations hereunder; (ii) none of the execution, delivery or performance of this Agreement by Buyer does or will, with or without the giving of notice, lapse of time or both (i) violate, conflict with or constitute a default under (A) the organization documents of Buyer or any material agreement, instrument or other document to which Buyer is a party or by which it is bound, or (B) any judgment, decree, order, statute, injunction, rule or regulation of a governmental unit applicable to Buyer, or (ii) require the approval or waiver of or filing with any person (including, without limitation, any governmental unit, agency or instrumentality); (iii) this 

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Agreement constitutes and, when so executed and delivered, the other agreements and instruments delivered by Buyer under or in connection with this Agreement will constitute, the legal, valid and binding obligations of Buyer, enforceable against Buyer in accordance with their respective terms; (iv) Buyer has not relied upon any oral or written information provided by Seller except for the specific representations and warranties of Seller contained herein and acknowledges that no employee, agent or representative of Seller has been authorized to make, and that Buyer has not relied upon, any statements or representations other than those specifically contained in this Agreement; (v) Buyer has adequate financial resources to purchase the Property, and (vi) Buyer is not a person or entity with whom Seller is restricted from doing business under applicable laws relating to national security (such as the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, commonly known as the “USA Patriot Act”) and executive orders and regulations relating to such applicable laws.   
(c) If either party discovers, prior to or at the Closing, that any representation or warranty of the other is false, misleading or inaccurate in any material respect as of the Effective Date or as of the Closing Date (other than as to Seller changes to the Rent Roll as a result of the provision of Section 4(c)(iv) above) and is not acceptable to the other party, the non-breaching party may, after providing the breaching party with a written notice outlining in sufficient detail the objection and allowing the breaching party five (5) business days to cure said objection, have the right as its sole and exclusive right and remedy, to terminate this Agreement, in which event the Deposit shall be returned to Buyer and neither party shall have any further obligations to the other party hereunder, except with respect to obligations that expressly survive the termination hereof.  Notwithstanding any provision of this Agreement to the contrary, Seller shall not have any liability (and Buyer waives its right to bring any action) with respect to any representation and warranty contained in this Agreement, in which, prior to the Closing, Buyer obtains actual knowledge that such representation or warranty is untrue or incorrect, and Buyer with said knowledge nevertheless consummates the transaction contemplated by this Agreement.
(d) Operation of the Property.   Until the earlier of the Closing or the termination of this Agreement, Seller undertakes and agrees as follows:
(i) Seller shall pay (or cause to be paid) prior to delinquency, all mortgages, real property and personal property taxes, assessments and other levies which become due and payable with respect to the Property.
(ii) Seller shall not voluntarily (i) sell, contribute, assign or create any right, title or interest whatsoever in or to the Property, except as otherwise permitted herein, or (ii) cause any mortgage or deed of trust to be placed of record against the Property.
(iii) Without Buyer's prior written approval, which may be withheld in Buyer's sole and absolute discretion, Seller shall not enter into any new (or extend, amend, renew or replace any existing) agreement, service contract, employment contract, permit or obligation affecting the Property which would be binding upon Buyer upon its acquisition of the Property, or file for, pursue, accept or obtain any zoning, land use permit or other development approval or entitlement, or consent to the inclusion of the Property into any special district; provided, however, (i) Seller may enter into service or similar contracts without Buyer's approval if such contract is entered into in the ordinary course of Seller's business and  is terminable without penalty or premium 

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on not more than 30 days’ notice from the owner of the Property and is disclosed promptly in writing to Buyer; and (ii) Seller may enter new Leases pursuant to Section 4(c)(iv).
(iv) Seller shall maintain all casualty and liability insurance in place as of the Effective Date with respect to the Property in amounts and with deductibles substantially the same as of the Effective Date.
(v) Seller shall not remove any material item of Personal Property from the Property unless the same is obsolete and is replaced by tangible personal property of equal or greater utility and value.
(vi) Seller shall not commence or allow to be commenced on its behalf any action, suit or proceeding with respect to all or any portion of the Property without the prior written consent of Buyer.
(vii) Seller shall maintain the Property in its present condition, ordinary wear and tear and casualty excepted.
Until the earlier of Closing or the termination of this Agreement, Seller agrees to notify Buyer in writing promptly upon learning or receiving notice, whichever first occurs, of:
(i) Seller's material breach of any of its representations, warranties or covenants in this Agreement, or any fact or event which would make (i) any of the representations or warranties of Seller contained in this Agreement untrue or misleading in any material respect or (ii) any covenant or agreement of Seller under this Agreement incapable or substantially less likely of being performed; 
(ii) Any damage or destruction (excluding normal wear and tear), or any taking by condemnation or eminent domain (or any threat thereof), of the Property or any part thereof; and
(iii) Any written notice of violation from any governmental authority.
8. RISK OF LOSS AND CONDEMNATION
(a) In the event of casualty at the Property, and the cost for repair of such casualty is to exceed five percent (5%) of the Purchase Price (the “Damage Threshold Amount”) as determined by an engineer chosen by Seller and reasonably acceptable to Buyer, then Buyer shall have the option, to be exercised within five (5) business days after the date of receipt of Seller’s notice of such damage (and the Closing Date shall be extended if necessary to provide for such five (5) business day period), to either: (i) terminate this Agreement, in which case the Escrow Agent shall immediately return the Deposit to the Buyer and no party shall have any further liability or obligation to any other party under this Agreement, except with respect to obligations that expressly survive the termination hereof, or (ii) elect to proceed with the Closing, in which case the Seller shall assign all rights to receive insurance proceeds for such casualty to Buyer and pay or credit to Buyer the amount of any deductible and any proceeds received by Seller and unexpended for repairs.  

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(b) Buyer is bound to purchase the Property as required by the terms of this Agreement without regard to the occurrence or effect of any damage to or destruction of the Property, provided that the occurrence of any damage or destruction to the Property involves repair costs equal to or less than Damage Threshold Amount and in such event the Seller shall assign all rights to receive insurance proceeds for such casualty to Buyer and pay or credit to Buyer the amount of any deductible and any proceeds received by Seller and unexpended for repairs.  
(c) If, after the Effective Date and prior to the Closing, all or a material part of the Property is threatened or taken by eminent domain or condemnation, Seller shall promptly notify Buyer in writing and Buyer may give written notice to Seller electing to terminate this Agreement prior to the Closing in which event both parties shall be relieved and released of and from any further liability hereunder, except as set forth herein, the Deposit shall forthwith be returned to the Buyer by Escrow Agent, and thereupon this Agreement shall become null and void and be considered canceled.  If no such election is made within five (5) business days of Seller notifying Buyer of such taking, then this Agreement shall remain in full force and effect and the sale and purchase contemplated herein, excluding any interest taken by eminent domain or condemnation, shall be effected with no further adjustment, and, upon the Closing, Seller shall assign, transfer, and set over to Buyer all of the right, title and interest of Seller in and to any awards that have been or that may thereafter be made for such taking.
9. DEFAULT
(a) Seller’s Default.  In the event that Seller fails to perform any of its material obligations under this Agreement or if any representation made by Seller was knowingly untrue in any material respect when made (and such failure is not cured by Seller within five (5) days after Buyer has notified Seller of such default, other than a failure to close as scheduled), then Buyer may, at its option and as its sole and exclusive remedy, either (i) terminate this Agreement and receive a full and immediate refund of the Deposit held by Escrow Agent, and, if such failure is a failure to close as scheduled hereunder, Seller shall reimburse Buyer for all of its actual out of pocket costs and expenses incurred by Buyer in connection with this transaction (not to exceed $100,000), and this Agreement shall be terminated and neither party hereunder shall have any further obligations to the other expect as expressly provided herein or (ii) enforce specific performance of this Agreement.  As a condition precedent to Buyer’s exercising any right it may have to bring an action for specific performance hereunder, Buyer must commence such action for specific performance within sixty (60) days after the date scheduled for Closing.  Buyer agrees that its failure to timely commence such an action for specific performance within such sixty (60) day period shall be deemed a waiver by it of its right to commence an action for specific performance as well as a waiver by it of any right it may have to file or record a notice of lis pendens or similar instrument against the Property.  The foregoing shall be the sole and exclusive remedies available to Buyer.  Buyer hereby expressly waives any other right to seek damages against Seller.  In no event shall any member, officer, director, agent or employee of Seller or its partners be personally liable for any of Seller’s obligations under this Agreement or the documents to be delivered at the Closing.  For all purposes hereof, Buyer waives its right to seek, plead or obtain any judgment for any remedies or damages not specifically contained herein, including, without limitation, consequential, compensatory and punitive damages.  
(b) Buyer’s Default.  In the event Buyer is in default under or in breach of any of the material terms, covenants, or obligations hereunder (and such failure is not cured by Buyer within 

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five (5) days after Seller has notified Buyer of the specific nature of such default, other than a failure to close as scheduled or to deliver the Deposit when required), then at the option of Seller, and as Seller’s sole and exclusive remedy, Escrow Agent shall deliver the Deposit to Seller and it shall become the property of Seller, such sum being agreed upon as liquidated damages for the failure of Buyer to perform the duties, liabilities, and obligations imposed upon it by the terms and provisions of this Agreement and because of the difficulty, inconvenience and uncertainty of ascertaining actual damages, and the parties shall thereupon be relieved and released from all other and further obligations under this Agreement, except for the obligations of indemnification which expressly survive this Agreement.  The indemnity obligations of Buyer set forth in this Agreement are not subject to the limitations set forth in this Section. 
10. INTENTIONALLY OMITTED 
11. DISCLOSURES
BUYER SHOULD NOT RELY ON THE SELLER’S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT BUYER MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO BUYER.  A CHANGE OF OWNERSHIP OR IMPROVEMENTS TRIGGERS REASSESSMENTS OF THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES.  IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY APPRAISER’S OFFICE FOR INFORMATION.
12. NOTICES
Any notices, requests, demands, tenders and communications hereunder shall be in writing and may be served (i) by hand delivery; (ii) by recognized overnight, third party prepaid courier service (such as Federal Express); or (iii) by telecopy or by pdf attachment to email, provided that if sent by telecopy or electronically, a duplicate copy is sent contemporaneously by one of the methods described in (i) or (ii) above.  Any notice or other communication mailed as aforesaid shall be deemed effectively given (x) on the date of delivery if personally delivered or sent by telecopy or electronic delivery, (y) on the date delivered if sent by courier service, or (z) on the date indicated on the return receipt if mailed.  Such notices shall be given to the parties hereto at the following addresses:

If to Seller:        c/o The Bainbridge Companies
12765 W. Forest Hill Boulevard, Suite 1307
Wellington, FL  33414
Attn:      Paul DeCain
Telecopy:  (301) 352-0761 
Email:     pdecain@bainbridgere.com

Copy to:        Broad and Cassel
7777 Glades Road, Suite 300 
Boca Raton, FL 33434
Attn:    Christopher Staller
Telecopy: (305) 995-6443 
Email: cstaller@broadandcassel.com        

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If to Buyer:        H&R PROPERTIES, LLC
1409 S. Lamar Street, Suite 1005
Dallas, TX 75215
Attn:  Philippe Lapointe
Telecopy:  (___) ___-____ 
Email: plapointe@lantowerresidential.com    

Copy to:        Blaivas & Associates, P.C.
1430 Broadway, Suite 1603
New York, New York 10018
Attn:  David G., Blaivas
Telecopy:  (646) 349-2042 
Email: dblaivas@blpclaw.com    

If to Escrow Agent:     Stewart Title Guaranty Company
National Title Services - Charlotte
5935 Carnegie Boulevard 
Telephone:  (704) 401-2026
Fax No.: (704) 401-2038
Attn: Danielle Howell
Email:  dhowell@stewart.com    

Any party hereto may, by giving five (5) days written notice to the other party hereto given in accordance with this Section, designate any other address in substitution of the foregoing address to which notice shall be given.  The attorney for a party has the authority to send and receive notices on behalf of such party.

13. BROKERS
Each party warrants to the other that no brokers have been engaged or consulted by the warranting party or any affiliated person or entity of such party or are in any way entitled to compensation as a consequence of the sale of the Property to Buyer other than CB Richard Ellis (“Broker”).  Seller shall be responsible for the commission owed to Broker pursuant to separate agreement, if and only if, the Closing occurs.  Each of Buyer and Seller agrees to indemnify and hold harmless the other party from and against any and all claims and expenses for any brokerage or agent commission or fee arising out of this transaction by any broker or agent with whom the indemnifying party has dealt, other than Broker.  Both parties shall have the right, however, to participate in the defense of any action brought by such agent or broker.  The provisions of this Section shall survive the Closing.
14. ESCROW AGENT
The Deposit shall be held by Escrow Agent in trust and may be deposited in an interest bearing account (the “Depository”).  Seller and Buyer agree that Escrow Agent shall have no liability in the event of failure, insolvency or inability of the Depository to pay such funds, or accrued interest upon demand or withdrawal.  Buyer and Seller acknowledge that the account may not protected by the insurance afforded by the FDIC. 

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If at any time Escrow Agent receives written notice from Buyer demanding return of the Deposit (“Buyer’s Notice”), then Escrow Agent shall promptly deliver a copy thereof to Seller.  If on or before 5:00 p.m. on the date which is five business days following delivery of such Buyer’s Notice to Seller, Seller shall object to the return of the Deposit to Buyer by notice received by Escrow Agent (“Seller’s Objection Notice”), then Escrow Agent shall not disburse the Deposit to Buyer until the dispute is resolved. However, if Seller does not deliver a Seller’s Objection Notice to Escrow Agent on or before 5:00 p.m. on the date which is five business days following Seller’s receipt of such Buyer’s Notice from Escrow Agent, then Escrow Agent may disburse the Deposit to Buyer.
If at any time Escrow Agent receives written notice from Seller demanding return of the Deposit (“Seller’s Notice”), then Escrow Agent shall promptly deliver a copy thereof to Buyer.  If on or before 5:00 p.m. on the date which is five business days following delivery of such Seller’s Notice to Buyer, Buyer shall object to the return of the Deposit to Seller by notice received by Escrow Agent (“Buyer’s Objection Notice”), then Escrow Agent shall not disburse the Deposit to Seller until the dispute is resolved. However, if Buyer does not deliver a Buyer’s Objection Notice to Escrow Agent on or before 5:00 p.m. on the date which is five business days following Buyer’s receipt of such Seller’s Notice from Escrow Agent, then Escrow Agent may disburse the Deposit to Seller.
Subject to the foregoing, in the event of any dispute regarding any action taken, or proposed to be taken, by Escrow Agent with respect to the Deposit, Escrow Agent, in its sole discretion, may:
a. Refuse to comply with any demands on it and continue to hold the Deposit until it receives either: (i) written notice signed by Buyer and Seller, directing the disbursement of the Deposit; or (ii) an order of a court, having competent jurisdiction thereover, directing the disbursement of the Deposit;
b. On notice to Seller and Buyer, take such affirmative action as it may deem appropriate to determine its duties as escrow agent including, but not limited to, the placing of the Deposit with a court of competent jurisdiction and the commencement of an action for interpleader; or
c. If Buyer or Seller shall have commenced litigation with respect to the Deposit, place the Deposit with the Clerk of the Court in which said litigation is pending.
Upon disbursing or depositing the Deposit under the provision of clause (a), (b) or (c) above, Escrow Agent shall have no further obligation with respect to the Deposit.

Buyer, Seller and Escrow Agent acknowledge that Escrow Agent is acting hereunder as a depository only to the parties except as described herein, and Buyer and Seller, jointly and severally, do hereby agree to indemnify and hold harmless Escrow Agent of and from any and all liabilities, costs, expenses and claims, of any nature whatsoever, by reason of or arising out of any act or failure to act as Escrow Agent hereunder, except in the case of Escrow Agent’s gross negligence or willful misconduct.  Buyer and Seller acknowledge that Escrow Agent has been retained by Seller to act as its counsel in connection with the sale of the Property and shall be entitled to continue to represent Seller in connection with this Agreement or any other matter, notwithstanding Escrow Agent having agreed to act as escrow agent hereunder.

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All parties agree that Escrow Agent shall not be liable to any party or person whomsoever for: (i) the sufficiency, correctness, genuineness or validity of any instrument deposited with it or any notice or demand given to it or for the form of execution of such instrument, notice or demand, or for the identification, authority or rights of any person executing, depositing or giving the same or for the terms and conditions of any instrument, pursuant to which the parties may act; (ii) acting upon any signature, notice, demand, request, waiver, consent, receipt or other paper or document believed by Escrow Agent to be genuine and Escrow Agent may assume that any person purporting to give it any notice on behalf of any party in accordance with the provisions hereof has been duly authorized to do so; or (iii) otherwise acting or failing to act under this Section except in the case of Escrow Agent’s gross negligence or willful misconduct. 
15. SECTION 1445 OF INTERNAL REVENUE CODE
In order to comply with the provisions of Section 1445 of the Internal Revenue Code of 1986, as amended (the “Code”), Seller shall deliver to Buyer at Closing an affidavit in which Seller, under penalty of perjury, affirms that Seller is not a “foreign person” as defined in the Code, states the United States taxpayer identification number of Seller, affirms that Seller intends to timely file a United States income return with respect to the transfer of the Property and which otherwise conforms to the requirements of Section 1445 of the Code and the Regulations promulgated thereunder.  If Seller fails or is unable to furnish an affidavit as required by law, Buyer may withhold ten (10%) percent of the gross sales price of the Property, in lieu of payment thereof to Seller, and shall instead pay such amount to the Internal Revenue Service in such form and manner as required by law.
16. AS-IS CONDITION OF PROPERTY.  EXCEPT FOR THE SPECIFIC COVENANTS, REPRESENTATIONS AND WARRANTIES IN THIS AGREEMENT AND IN THE CLOSING DOCUMENTS DELIVERED BY SELLER AT CLOSING, THE SALE OF THE PROPERTY AS PROVIDED FOR HEREIN IS MADE ON AN “AS IS, WHERE-IS” CONDITION AND BASIS WITH ALL FAULTS.  TO THE EXTENT PERMITTED BY LAW, EXCEPT FOR THE SPECIFIC COVENANTS, REPRESENTATIONS AND WARRANTIES IN THIS AGREEMENT AND IN THE CLOSING DOCUMENTS DELIVERED BY SELLER AT CLOSING, SELLER SPECIFICALLY DISCLAIMS ALL WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE (INCLUDING WARRANTIES OF MERCHANTABILITY AND WARRANTIES OF FITNESS FOR USE OR ACCEPTABILITY FOR THE PURPOSE INTENDED BY BUYER) WITH RESPECT TO THE PROPERTY OR THE PROPERTY’S CONDITION OR THE CONSTRUCTION, PROSPECTS, OPERATIONS OR RESULTS OF OPERATIONS OF THE PROPERTY.  EXCEPT FOR THE SPECIFIC COVENANTS, REPRESENTATIONS AND WARRANTIES IN THIS AGREEMENT AND IN THE CLOSING DOCUMENTS DELIVERED BY SELLER AT CLOSING, THE DISCLAIMERS HEREOF SPECIFICALLY EXTEND TO, WITHOUT LIMITATION, (1) MATTERS RELATING TO HAZARDOUS MATERIALS AND COMPLIANCE WITH ENVIRONMENTAL LAWS, (2) GEOLOGICAL CONDITIONS, INCLUDING SUBSIDENCE, SUBSURFACE CONDITIONS, WATER TABLE, UNDERGROUND STREAMS AND RESERVOIRS AND OTHER UNDERGROUND WATER CONDITIONS, LIMITATIONS REGARDING THE WITHDRAWAL OF WATER, EARTHQUAKE FAULTS, AND MATTERS RELATING TO FLOOD PRONE AREAS, FLOOD PLAIN, FLOODWAY OR SPECIAL FLOOD HAZARDS, (3) DRAINAGE, (4) SOIL CONDITIONS, INCLUDING THE EXISTENCE OF INSTABILITY, CONDITIONS OF SOIL FILL, SUSCEPTIBILITY TO LANDSLIDES, AND THE SUFFICIENCY OF ANY 

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UNDERSHORING, (5) ZONING AND SUBDIVISION AND COMPLIANCE WITH ZONING AND SUBDIVISION LAWS, (6) THE VALUE AND PROFIT POTENTIAL OF THE PROPERTY AND (7) DESIGN, QUALITY, SUITABILITY, STRUCTURAL INTEGRITY AND PHYSICAL CONDITION OF THE PROPERTY AND COMPLIANCE OF THE PROPERTY WITH ANY LAWS (INCLUDING BUILDING CODES AND SIMILAR LAWS, THE AMERICANS WITH DISABILITIES ACT OF 1990 AND THE FAIR HOUSING AMENDMENTS ACT OF 1988).  BUYER REPRESENTS AND WARRANTS TO SELLER THAT BUYER IS A KNOWLEDGEABLE, EXPERIENCED AND SOPHISTICATED BUYER OF REAL ESTATE.  BUYER ACKNOWLEDGES THAT, EXCEPT FOR THE SPECIFIC COVENANTS, REPRESENTATIONS AND WARRANTIES MADE BY SELLER IN THIS AGREEMENT AND IN THE CLOSING DOCUMENTS DELIVERED BY SELLER AT CLOSING, BUYER HAS NOT RELIED UPON AND WILL NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY, ANY STATEMENT OF SELLER OR ANY OF ITS AFFILIATES OR ANY OFFICER, DIRECTOR, TRUSTEE, AGENT, EMPLOYEE, BROKER, ATTORNEY OR OTHER PERSON ACTING OR PURPORTING TO ACT ON BEHALF OF SELLER OR ANY OF ITS AFFILIATES.  BUYER ACKNOWLEDGES THAT IT HAS CONDUCTED OR WILL CONDUCT SUCH INSPECTIONS AND INVESTIGATIONS AS TO THE CONDITION OF THE PROPERTY AND ALL MATTERS BEARING UPON THE PROPERTY AND THE CONSTRUCTION, PROSPECTS, OPERATIONS AND RESULTS OF OPERATIONS OF THE PROPERTY AS IT DEEMS NECESSARY TO PROTECT ITS INTERESTS.  BUYER IS ACQUIRING THE PROPERTY “AS IS” AND “WHERE IS” AND WITH ALL FAULTS, DEFECTS OR OTHER ADVERSE MATTERS.  UPON CLOSING, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT AND IN THE CLOSING DOCUMENTS DELIVERED BY SELLER AT CLOSING, BUYER WILL ACCEPT THE PROPERTY SUBJECT TO ADVERSE STRUCTURAL, PHYSICAL, ECONOMIC OR ENVIRONMENTAL CONDITIONS THAT MAY THEN EXIST AND THAT WERE OR MAY NOT HAVE BEEN REVEALED BY THE INSPECTIONS AND INVESTIGATIONS CONDUCTED BY BUYER, AND, EXCEPT FOR THE SPECIFIC COVENANTS, REPRESENTATIONS AND WARRANTIES IN THIS AGREEMENT AND IN THE CLOSING DOCUMENTS DELIVERED BY SELLER AT CLOSING, BUYER SPECIFICALLY WAIVES AND RELEASES (1) ALL WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE (INCLUDING WARRANTIES OF MERCHANTABILITY AND WARRANTIES OF FITNESS FOR USE OR ACCEPTABILITY FOR THE PURPOSE INTENDED BY SELLER) WITH RESPECT TO THE PROPERTY OR ITS CONDITION OR THE CONSTRUCTION, PROSPECTS, OPERATIONS OR RESULTS OF OPERATIONS OF THE PROPERTY AND (2) ALL RIGHTS, REMEDIES, RECOURSE OR OTHER BASIS FOR RECOVERY (INCLUDING ANY RIGHTS, REMEDIES, RECOURSE OR BASIS FOR RECOVERY BASED ON NEGLIGENCE OR STRICT LIABILITY) THAT BUYER WOULD OTHERWISE HAVE AGAINST SELLER OR ANY OF ITS AFFILIATES, ANY PERSON WHO HOLDS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN SELLER OR ANY SUCH AFFILIATE AND THE RESPECTIVE OFFICERS, DIRECTORS, TRUSTEES, AGENTS, EMPLOYEES, BROKERS AND ATTORNEYS OF EACH SUCH PERSON IN RESPECT OF THE CONDITION OF THE PROPERTY.  BUYER ACKNOWLEDGES AND AGREES THAT THE DISCLAIMERS, WAIVERS AND RELEASES SET FORTH HEREIN ARE AN INTEGRAL PART OF THIS AGREEMENT AND THAT SELLER WOULD NOT HAVE AGREED TO COMPLETE THE SALE ON THE TERMS PROVIDED IN THIS AGREEMENT WITHOUT THE DISCLAIMERS, WAIVERS AND RELEASES SET FORTH HEREIN. 
BUYER REPRESENTS TO SELLER THAT BUYER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING 

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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, EXCEPT FOR THE SPECIFIC COVENANTS, REPRESENTATIONS AND WARRANTIES IN THIS AGREEMENT AND IN THE CLOSING DOCUMENTS DELIVERED BY SELLER AT CLOSING, 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.  
AS A MATERIAL PART OF THE CONSIDERATION TO SELLER FOR THE SALE OF THE PROPERTY, BUYER, ON BEHALF OF ITSELF, AND ITS SUCCESSORS AND ASSIGNS, FROM AND AFTER CLOSING PURSUANT TO THE AGREEMENT, HEREBY IRREVOCABLY WAIVES, AND RELEASES SELLER, GENERAL CONTRACTOR, AND THEIR PARTNERS, MEMBERS, PRINCIPALS, REPRESENTATIVES, ATTORNEYS AND EMPLOYEES FROM ANY AND ALL CLAIMS, DEMANDS, OBLIGATIONS, DAMAGES, CAUSES OF ACTION AND LIABILITIES, WHETHER KNOWN OR UNKNOWN, OTHER THAN THOSE FOR BREACH OF SELLER’S COVENANTS, REPRESENTATIONS AND WARRANTIES SET FORTH HEREIN OR IN THE CLOSING DOCUMENTS DELIVERED BY SELLER, THAT ARE BASED DIRECTLY OR INDIRECTLY ON, ARISE FROM OR IN CONNECTION WITH, OR ARE RELATED TO: (A) ANY PAST, PRESENT OR FUTURE CONDITION OF THE PROPERTY, INCLUDING, (B) ANY AND ALL STATEMENTS, REPRESENTATIONS, WARRANTIES, DETERMINATIONS, CONCLUSIONS, ASSESSMENTS, ASSERTIONS OR ANY OTHER INFORMATION CONTAINED IN ANY OF THE DOCUMENTS DELIVERED TO BUYER IN CONNECTION HEREWITH (BUT SPECIFICALLY EXCLUDING ANY REPRESENTATIONS OR WARRANTIES MADE BY SELLER IN THIS AGREEMENT OR IN ANY AGREEMENT OF THE CLOSING DOCUMENTS DELIVERED BY SELLER AT CLOSING), OR ANY MISREPRESENTATION OR FAILURE TO DISCLOSE INFORMATION RELATING TO THE PROPERTY OR THE DOCUMENTS DELIVERED TO BUYER IN CONNECTION HEREWITH, OR (C) ANY DEFECT, INACCURACY OR INADEQUACY IN THE CONDITION OF TITLE TO THE PROPERTY, LEGAL DESCRIPTION OF THE PROPERTY, OR COVENANTS, RESTRICTIONS, ENCUMBRANCES OR ENCROACHMENTS WHICH AFFECT THE PROPERTY.
BUYER HEREBY ACKNOWLEDGES AND AGREES THAT (i) BUYER MAY HEREAFTER DISCOVER FACTS DIFFERENT FROM OR IN ADDITION TO THOSE NOW (OR AS OF THE CLOSING) KNOWN OR BELIEVED TO BE TRUE REGARDING THE PROPERTY AND/OR THE DOCUMENTS DELIVERED TO BUYER IN CONNECTION HEREWITH, (ii) BUYER’S AGREEMENT TO RELEASE, ACQUIT AND DISCHARGE SELLER AS SET FORTH HEREIN SHALL REMAIN IN FULL FORCE AND EFFECT, NOTWITHSTANDING THE EXISTENCE OR DISCOVERY OF ANY SUCH DIFFERENT OR ADDITIONAL FACTS, AND (iii) BUYER KNOWINGLY AND VOLUNTARILY WAIVES ANY AND ALL RIGHTS, BENEFITS AND PRIVILEGES TO THE FULLEST EXTENT PERMISSIBLE UNDER ANY FEDERAL, STATE, LOCAL, OR OTHER LAWS WHICH DO OR WOULD NEGATIVELY AFFECT VALIDITY OR ENFORCEABILITY OF ALL OR PART OF THE RELEASES SET FORTH IN THIS AGREEMENT.

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TO THE EXTENT PERMITTED BY LAW, BUYER AGREES NEVER TO COMMENCE OR PROSECUTE, OR CONSPIRE OR COLLUDE WITH OTHERS TO COMMENCE OR PROSECUTE, AGAINST THE SELLER, GENERAL CONTRACTOR AND/OR THEIR PARTNERS, MEMBERS, PRINCIPALS, REPRESENTATIVES, ATTORNEYS OR EMPLOYEES, ANY ACTION OR OTHER PROCEEDING BASED UPON ANY CLAIM SPECIFICALLY RELEASED IN THIS SECTION 16; PROVIDED, HOWEVER, IN NO EVENT SHALL THE RELEASES SET FORTH HEREIN BE DEEMED TO APPLY TO (I) ANY CLAIMS AGAINST SELLER BASED ON FRAUD, (II) ANY BREACH OF SELLER’S REPRESENTATIONS,  OR WARRANTIES CONTAINED IN SECTION 7(A) OR IN ANY OF THE CLOSING DOCUMENTS DELIVERED BY SELLER OR (III) ANY THIRD-PARTY CLAIMS AGAINST SELLER, INCLUDING WITHOUT LIMITATION FOR PROPERTY DAMAGE OR PERSONAL INJURY, RELATING TO OR ARISING IN CONNECTION WITH MATTERS OCCURRING PRIOR TO THE CLOSING).  THIS RELEASE SHALL BE DEEMED REAFFIRMED AT THE CLOSING.
THE PROVISIONS OF THIS SECTION 16 SHALL SURVIVE CLOSING OR ANY TERMINATION OF THIS AGREEMENT.
17. MERGER PROVISION
Except as otherwise expressly provided herein, any and all provisions contained herein shall merge with the Deed and other instruments executed at Closing, shall terminate at Closing and shall not survive Closing.  Notwithstanding the foregoing, each of the representations and warranties of Seller and Buyer contained in Section 7(a) of this Agreement shall survive until the date which is six (6) months after the Closing Date (“Limitation Date”) and no longer. Any post-closing claim that a party may have at any time against the other party for a breach of any such representation or warranty, whether known or unknown, which is not asserted by notice from such party to the other on or before the expiration of such Limitation Date shall not be valid or effective, and the other party will have no liability with respect thereto.  Prior to asserting a post-closing claim, Buyer or Seller, as applicable, shall provide written notice to the other party of any alleged breach of such representation or warranty and shall allow the other party thirty (30) days within which to cure such breach, or, if such breach cannot reasonably be cured within thirty (30) days, an additional reasonable time period, so long as such cure has been commenced within such thirty (30) days and is being diligently pursued.  If the other party fails to cure such breach after written notice and within such cure period, then the sole remedy of the party asserting the claim shall be an action at law for actual damages as a consequence thereof, provided that any claim or action at law for actual damages brought after Closing based upon a misrepresentation or a breach of a warranty or representation under this Agreement shall be actionable or enforceable if and only if notice of such claim is given to the other party prior to the Limitation Date.  Each party hereby agrees that the maximum aggregate liability of the other party, in connection with, arising out of or in any way related to a breach of any representation or warranty by the other party shall not exceed one percent (1%) of the Purchase Price ("Liability Cap").  In addition, no party shall have any liability to the other for a breach of any representation or warranty unless the valid claims for all such breaches collectively aggregate more than $20,000.00, in which event the full amount of such valid claims will be actionable, subject to the Liability Cap. Each party hereby waives for itself and anyone who may claim by, through or under the other party any and all rights to sue or recover from Seller any amount greater than the Liability Cap.  Each party acknowledges that in no event shall the other party be liable to such party for lost profits, diminution in value, or consequential, incidental or punitive damages of any kind. There shall be no personal liability on the part of the Knowledge Party arising out of this Agreement.  Seller 

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agrees that through the later of (i) the Limitation Date; and (ii) to the extent that Buyer shall made a claim against Seller pursuant to and in accordance with this Agreement, the final resolution of any claim brought by Buyer in accordance with this Agreement, it shall maintain liquidity of not less than the Liability Cap, less the amount of any claims paid to Buyer under this Agreement. Upon written request from Buyer to Seller, Seller shall provide reasonable documentation evidencing Seller’s satisfaction of the foregoing liquidity covenant, provided, however, that Seller shall not be obligated to deliver such documentation more frequently than quarterly.  The provisions of this Section shall survive the Closing.  
18. GENERAL PROVISIONS
(a) Severability.  In the event any term or provision of this Agreement shall be held illegal, unenforceable or inoperative as a matter of law, the remaining terms and provisions of this Agreement shall not be affected thereby and shall remain in full force and effect.
(b) Binding Effect, Entire Agreement, Modification.  This Agreement shall be binding upon, and shall inure to the benefit of, the heirs, representatives, successors and permitted assigns of the parties hereto.  This Agreement embodies the entire contract between the parties hereto with respect to the Property and supersedes any and all prior agreements and understandings, written or oral, formal or informal including, without limitation, any letter of intent relating to a sale of the Property.  No modifications or amendments to this Agreement, of any kind whatsoever, shall be made or claimed by Seller or Buyer, and no notices of any extension, change, modification or amendment made or claimed by Seller or Buyer shall have any force or effect whatsoever unless the same shall be endorsed in writing and fully signed by Seller and Buyer.
(c) Time of Essence.    Time shall be of the essence of this Agreement.
(d) Captions.  Captions and Article headings contained in this Agreement are for convenience of reference only and in no way define, describe, extend or limit the scope or intent of this Agreement nor the intent of any provision hereof.
(e) Remedies.  Every power or remedy given by this Agreement to the parties or to which the parties may otherwise be entitled may be exercised concurrently or independently, from time to time, and as often as may be deemed expedient by the parties and the parties may pursue inconsistent remedies.
(f) Assignment.  This Agreement is not assignable by Buyer other than to an entity controlling, controlled by, or under common control of, Buyer (“Permitted Assignment”).  Notwithstanding the foregoing, (i) a Permitted Assignment shall not relieve Buyer of its obligations hereunder, (ii) Buyer and such assignee shall remain jointly and severally liable for all obligations of the Buyer hereunder; and (iii) Buyer will provide written notice to Seller of any Permitted Assignment at least three (3) days prior to Closing.
(g) Waiver.  No delay or omission in the exercise of any right or remedy accruing to either party upon any breach by the other party under this Agreement shall impair such right or remedy or be construed as a waiver of any such breach theretofore or thereafter occurring.  No waiver of any provision of this Agreement shall be effective unless it is in writing and signed by the 

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party against whom it is asserted and any such written waiver shall only be applicable to the specific instance to which it relates and shall not be deemed to be a continuing or future waiver.
(h) Recordation of Agreement.  Neither Seller nor Buyer shall record this Agreement nor any memorandum, summary, or other evidence hereof in any public records prior to the consummation of the Closing.
(i) Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement.
(j) Interpretation.  All terms and words used in this Agreement, regardless of the number and gender in which used, shall be deemed to include any other gender or number as the context or the use thereof may require.  This Agreement shall be interpreted without regard to any presumption or other rule requiring interpretation against the party causing this Agreement or any part thereof to be drafted.  Unless this Agreement expressly or necessarily requires otherwise, any time period measured in “days” means consecutive calendar days, except that the expiration of any time period measured in days that expires on a Saturday, Sunday or legal holiday automatically will be extended to the next day so that it is not a Saturday, Sunday or legal holiday.
(k) Facsimile, Electronic Signature.  This Agreement may be executed in handwriting and delivered by facsimile or electronic delivery.  Any such delivery shall be treated as an original signature for all purposes.
(l) Confidentiality.  Except as provided in Section 5(g) or 18(u) of this Agreement, Buyer and Seller shall not disclose the provisions of this Agreement to any third party, and same shall be treated by Buyer and Seller as confidential unless otherwise agreed to in writing by the other party.  Moreover, at all times prior to the Closing and forever hereafter should this transaction not close, Buyer and Seller shall retain any and all information related to this Agreement, the transactions contemplated under this Agreement and/or any related transactions, including with respect to any and all contiguous parcels, and the fact that discussions or negotiations have taken place with respect to the Property or any of the terms, conditions or other facts with respect to such discussions (the “Information”) in strict confidence and not disclose the Information to any party without prior written consent of the other party, except that Buyer or Seller may disclose the Information to its directors, officers, employees, lenders, consultants and agents (collectively, hereinafter referred to as “Necessary Representatives”), who need such information for the purpose of proceeding with the transaction, provided that they agree to keep the Information confidential and agree to be bound by this provision of the Agreement.  Buyer and Seller shall be responsible for any breach of this provision of the Agreement by its Necessary Representatives.  Buyer and Seller agree that the other party shall be entitled to equitable relief, including an injunction, in the event of any breach of this provision of the Agreement as well as all other rights and remedies provided hereunder.  Buyer acknowledges and agrees that all of the Confidential Information and any other information obtained by Buyer regarding the Property as a result of Buyer's inspection of the Property shall be and remain confidential.  Buyer further agrees and acknowledges that if any such Confidential Information is disclosed to third parties, to Seller’s employees or Seller’s tenants, Seller may suffer damages and irreparable harm.  Buyer and Seller expressly acknowledge, covenant and agree (a) that they shall not make any press release or other public disclosure concerning the transaction contemplated by this Agreement without first 

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disclosing the intended press release information to the other party, and Buyer  shall not disclose any of the contents or information contained in or obtained as a result of any due diligence reports or any other studies made in connection with Buyer's investigation of the Property, in any form whatsoever (including, but not limited to, any verbal information received by Buyer during the course of Buyer's inspection and investigation of the Property), to any party other than Buyer's attorneys, accountants, employees, professional firms performing inspections and report reviews, investors, brokers, agents, consultants, contractors, affiliates and prospective lenders; (b) that in making any disclosure of such information as permitted hereunder, Buyer shall advise such third parties of the confidentiality of such information and the potential of damage to Seller and the liability of Buyer and such third party as a result of any disclosure of such information by such third party and be responsible for such third party's compliance.  This Section shall survive cancellation or termination of this Agreement.
(m) Advice of Counsel.  Each party acknowledges that it has been advised, or has had the opportunity to be advised, by its own counsel with respect to the transaction governed by this Agreement.
(n) OFAC Disclosure.  Buyer and Seller and their respective members, shareholders, officers and directors are in compliance with the requirements of Executive Order No. 133224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (the “Order”) and other similar requirements contained in the rules and regulations of the Office of Foreign Assets Control, Department of the Treasure (“OFAC”) and in any enabling legislation or other Executive Orders or regulations in respect thereof (the Order and such other rules, regulations, legislation, or orders are collectively called the “Orders”).  None of Buyer, Seller or, to Seller's knowledge, any investor in or beneficial owner of Buyer or Seller, as appropriate: (a) is listed on the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Orders (such lists are collectively referred to as the “Lists”); (b) is a person or entity who has been determined by competent authority to be subject to the prohibitions contained in the Orders; or (c) is owned or controlled by, or acts for on or behalf of, any person or entity on the Lists or any other person or entity who has been determined by any competent authority to be subject to the prohibitions contained in the Orders.
(o) Intentionally Omitted.
(p) No Third Party Beneficiaries.  This Agreement is an agreement between Seller and Buyer only and no third parties shall be entitled to assert any rights as third party beneficiaries hereunder.

(q) Intentionally Omitted.
(r) Withdrawal of Offer.  Until this Agreement is fully executed by Seller and delivered to Buyer, Seller reserves the right to withdraw its offer to sell the Property to Buyer pursuant to the terms of this Agreement.

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(s) Applicable Law.  This Agreement is being executed and delivered, and is intended to be performed, in the State of North Carolina, and the laws of the State of North Carolina govern the validity, construction, enforcement and interpretation of this Agreement, without regard to, or effect of, any choice or conflict of law principles or rules, unless otherwise specified herein.  By executing this Agreement, the parties consent to the exclusive venue and jurisdiction of any federal or state court sitting in the County of Durham and State of North Carolina in any action arising out of or in any way related to this Agreement.  The parties irrevocably and unconditionally submit to the jurisdiction (both subject matter and personal) of any such court and irrevocably and unconditionally waive: (i) any objection any party might now or hereafter have to the venue in any such court; and (ii) any claim that any action or proceeding brought in any such court has been brought in an inconvenient forum.
(t) WAIVER OF JURY TRIAL.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF SELLER AND BUYER WAIVE TRIAL BY JURY IN ANY ACTION ARISING OUT OF, OR IN ANYWAY CONNECTED WITH, THIS AGREEMENT.
(u) SEC Disclosures. Buyer shall use commercially-reasonable efforts to promptly provide Seller, upon Seller’s prior written request therefor, with such information as Seller determines is necessary to complete any filings with the SEC or other governmental agency which is made by Seller or its affiliates.  Seller and its affiliates shall have the right to include any and all information concerning the Property and the transactions memorialized by this Agreement deemed necessary by Seller, in its reasonable discretion, to be incorporated into any regulatory filings made by Seller or its affiliates with the SEC, including without limitation on Form 8-K or Form 10-K; provided, however, that Seller shall use commercially reasonable efforts to provide a draft of any such filing to Buyer in advance of such filing. Notwithstanding anything to the contrary contained in this Agreement, Buyer understands, agrees and acknowledges that Seller intends on disclosing and filing, on one or more occasions, with the SEC or other governmental agency, a copy of this Agreement (as well as the name of the Buyer and the Purchase Price).  The terms and provisions of this section shall survive the Closing.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

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[SIGNATURE PAGE TO AGREEMENT OF SALE AND PURCHASE]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the respective dates indicated below.

	
		
	 
	SELLER:

GGT PATTERSON PLACE NC VENTURE, LLC, 
a Delaware limited liability company

By: Bainbridge Patterson Place, LLC, a    
       Florida limited liability company, its Manager

       By:  Bainbridge Manager, LLC, a Florida    
               limited liability company, its Manager 

               By: /s/ Thomas Keady__________
                     Thomas Keady, Vice President 

Date: June 15, 2016

	 
	 

	 
	BUYER:

	 
	PATTERSON MULTIFAMILY DURHAM, LP, 
a Delaware limited partnership

By:   Patterson Multifamily Durham GP LLC
a Delaware limited liability company, its general partner

By:  H&R REIT (U.S.) Holdings Inc., a Delaware corporation, its sole member

	 
	

By: /s/ Thomas Hofstedter
Name: Thomas Hofstedter

	 
	Title: President

	 
	 

	 
	Date: June 15, 2016

	 
	 

	 
	 

	 
	 

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JOINDER BY ESCROW AGENT

The undersigned Escrow Agent hereby joins in this Agreement and, by doing so, Escrow Agent hereby acknowledges its duties and obligations under the terms and provisions of this Agreement and hereby agrees to be bound by and to perform such duties and obligations in accordance with such terms and provisions. 

 ESCROW AGENT:

STEWART TITLE GUARANTY COMPANY

        
     By: /s/ Danielle Howell
                 Name: Danielle Howell
                 Title: Vice President

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EXHIBIT A

LEGAL DESCRIPTION

Intentionally Omitted 

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EXHIBIT B

RENT ROLL

Intentionally Omitted 

    

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EXHIBIT C

PERSONAL PROPERTY LISTING

Intentionally Omitted

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EXHIBIT D

SERVICE CONTRACTS

Intentionally Omitted

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EXHIBIT E

ASSIGNMENT AND ASSUMPTION OF LEASES

Intentionally Omitted

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EXHIBIT F

BILL OF SALE AND GENERAL ASSIGNMENT

Intentionally Omitted

4
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EXHIBIT G

ASSIGNMENT AND ASSUMPTION OF WARRANTIES

Intentionally Omitted

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EXHIBIT H

ASSIGNMENT AND ASSUMPTION OF SERVICE CONTRACTS

Intentionally Omitted

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EXHIBIT I

SPECIAL WARRANTY DEED

Intentionally Omitted

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EXHIBIT J

LIST OF PERMITTED EXCEPTIONS

Intentionally Omitted

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SCHEDULE 5(F)

PROPERTY INFORMATION

Intentionally Omitted

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SCHEDULE 7(XIII)

OPERATING STATEMENT

Intentionally Omitted

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SCHEDULE 7(XV)

ESTOPPEL CERTIFICATE

Intentionally Omitted

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EXHIBIT A

PROPERTY

Intentionally OmittedExhibit

EXHIBIT 10.3

SALE OF WHITEHALL PARC APARTMENTS
8024 WHITEHALL EXECUTIVE CENTER DR.
CHARLOTTE, NC

*   *   *

PURCHASE AND SALE AGREEMENT

BETWEEN

GGT WHITEHALL VENTURE NC, LLC,
AS SELLER

AND

BEL WHITEHALL LLC,
AS PURCHASER

*   *   *

EFFECTIVE DATE:   JUNE 30, 2016

______________________________________________________________________________

ARTICLE  PURCHASE AND SALE OF PROPERTY    
1.1 Land    
1.2 Improvements    
1.3 Personal Property    
1.4 Leases    
1.5 Licenses    
1.6 Security Deposits    
1.7 Guaranties    
1.8 Contracts    
1.9 Permits    
1.10 Intangibles    
ARTICLE PURCHASE PRICE AND DEPOSIT    
2.1 Payment    
2.2 Deposit    
ARTICLE  TITLE AND SURVEY    
3.1 State of Title to be Conveyed    
3.2 Title Commitment and Survey    
ARTICLE 4 PROPERTY INFORMATION    
4.1 Property Information    
ARTICLE 5 PURCHASER’S DUE DILIGENCE    
5.1 Purchaser’s Due Diligence    
5.2 As Is, Where Is    
ARTICLE 6 REPRESENTATIONS AND WARRANTIES    
6.1 Seller’s Representations and Warranties    
6.2 Purchaser’s Representations and Warranties    
6.3 Knowledge    
6.4 Survival    
ARTICLE 7 COVENANTS OF PURCHASER AND SELLER    
7.1 Operation of Property    
7.2 Governmental Notices    
7.3 Litigation    
7.4 Tradenames and Service Marks    
7.5 Surety and Maintenance Bonds    

ARTICLE 8 CONDITIONS PRECEDENT TO CLOSING    
8.1 Conditions Precedent to Purchaser’s Obligation to Close    
8.2 Conditions Precedent to Seller’s Obligation to Close    
8.3 Failure of a Condition    
8.4 Representations and Warranties    

        

ARTICLE 9 CLOSING    
9.1 Closing Date    
9.2 Seller’s Obligations at the Closing    
9.3 Purchaser’s Obligations at the Closing    
9.4 Escrow    
9.5 Costs and Adjustments at Closing    
ARTICLE 10 DAMAGE AND CONDEMNATION    
10.1 Damage    
10.2 Condemnation and Eminent Domain    
ARTICLE 11 REMEDIES AND ADDITIONAL COVENANTS    
11.1 Seller Default At or Before Closing    
11.2 Seller Default From and After Closing    
11.3 Purchaser Default    
11.4 Delivery of Materials    
ARTICLE 12 BROKERAGE COMMISSION    
12.1 Brokers    
12.2 Indemnity    
ARTICLE 13 NOTICES    
13.1 Written Notice    
13.2 Method of Transmittal    
13.3 Addresses    
ARTICLE 14 ASSIGNMENT    
ARTICLE 15 MISCELLANEOUS    
15.1 Entire Agreement    
15.2 Modifications    
15.3 Gender and Number    
15.4 Captions    
15.5 Successors and Assigns    
15.6 Controlling Law    
15.7 Exhibits    
15.8 No Rule of Construction    
15.9 Severability    
15.10 Time of Essence    
15.11 Business Days    
15.12 No Memorandum    
15.13 Press Releases    

        

15.14 Attorneys’ Fees and Costs    
15.15 Counterparts and Expiration of Offer    
15.16 Waiver of Jury Trial    
15.17 Confidentiality    
15.18 Jurisdiction and Service of Process    
15.19 Exculpation    

EXHIBITS AND SCHEDULES

Exhibits

Exhibit A –    Legal Description
Exhibit B –     Escrow Agreement
Exhibit C –     Form of Special Warranty Deed
Exhibit D –     Form of Bill of Sale
Exhibit E –     Form of Assignment and Assumption Agreement
Exhibit F –     Form of Tenant Notification Letter

Schedules

Schedule 1.4    –    Rent Roll
Schedule 1.5    –    Licenses
Schedule 1.8    –    Contracts
Schedule 4.1    –   Property Information
Schedule 6.1.3 –     Litigation
Schedule 6.1.8 –    Violations of Law
Schedule 6.1.16 –  Personal Property
Schedule 6.1.18 –  Environmental Reports
Schedule 7.5    –    Surety and/or Maintenance Bonds

        

Gender and Number
PURCHASE AND SALE AGREEMENT

This PURCHASE AND SALE AGREEMENT (this “Agreement”) is made and entered into as of the date set forth on the cover page hereof (the “Effective Date”), by and between GGT WHITEHALL VENTURE NC, LLC, a Delaware limited liability company (“Seller”), and BEL WHITEHALL LLC, a Delaware limited liability company (“Purchaser”).
ARTICLE 1  PURCHASE AND SALE OF PROPERTY

On the terms and conditions stated in this Agreement, Seller hereby agrees to sell to Purchaser and Purchaser hereby agrees to purchase from Seller all of the following described property (collectively, the “Property”):
1.1 Land.  Seller’s fee simple interest in and to all of that certain tract of land situated at 8024 Whitehall Executive Center Drive, Charlotte, Mecklenburg County, North Carolina, and described more particularly in Exhibit A attached hereto and incorporated herein by reference, together with all rights and appurtenances pertaining to such land, including, without limitation, all of Seller’s right, title and interest in and to (i) all minerals, oil, gas, and other hydrocarbon substances thereon; (ii) all adjacent strips, streets, roads, alleys and rights-of-way, public or private, open or proposed; (iii) all development rights, covenants, easements, privileges, and hereditaments, whether or not of record, and (iv) all access, air, water, riparian, development, utility, and solar rights (collectively, the “Land”).
1.2 Improvements.  A 297-unit multi-family apartment project, and all other improvements and structures constructed on the Land in connection therewith (the “Improvements”).
1.3 Personal Property.  All of Seller’s right, title and interest in and to the following (collectively, the “Personal Property”; provided, the “Personal Property” shall specifically exclude any property owned by tenants under leases):
1.3.1 mechanical systems, fixtures, machinery and equipment comprising a part of or attached to or located upon the Improvements; 
1.3.2 maintenance equipment and tools, if any, owned by Seller and used exclusively in connection with, and located in or on, the Improvements; 
1.3.3 site plans, surveys, plans and specifications, engineering plans and studies, landscape plans, and floor plans in Seller’s possession, if any, that relate to the Land or Improvements; 
1.3.4 subject to Section 7.4.2, pylons and other sign structures situated on or at the Land or Improvements; and
1.3.5 all computers, computer operating systems, and computer software programs utilized in connection with the Improvements and any Internet router and switch located at the Improvements owned by Seller (to the extent transferable); and
1.3.6  all other tangible personal property owned by Seller and used exclusively in connection with, and located in or on, the Land or Improvements as of the Effective Date and as of the Closing (as hereinafter defined).

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1.4 Leases.  Seller’s right, title and interest in all leases with tenants or other persons or entities leasing all or any portion of the Improvements (the “Leases”), a current list of which is shown on the rent roll attached as Schedule 1.4 (the “Rent Roll”). 
1.5 Licenses.  Seller’s right, title and interest in all licenses, license agreements and other similar agreements with licensees or other persons or entities using any portion of the Improvements (collectively, the “Licenses”), a current list of which is attached hereto as Schedule 1.5. 
1.6 Security Deposits.  Seller’s right, title and interest in all security deposits held by Seller in connection with the Leases and not applied pursuant to the terms thereof.
1.7 Guaranties.  Seller’s right, title and interest in any and all guaranties of the Leases, if any.
1.8 Contracts.  Subject to Section 7.1.2 hereof, Seller’s right, title and interest in all contract rights related to the Land, Improvements, Personal Property or Leases that will remain in existence after Closing, to the extent assignable, including, without limitation, Seller’s interest in the following:  parking, management, maintenance, commission, locator fee, referral fee, architectural, supply or service contracts, plans and specifications, surveys, warranties and guarantees related to the Land, Improvements, Personal Property, or Leases, but expressly excluding (i) the existing property management agreement that will be terminated as of the time of Closing, and (ii) the surety and maintenance bonds referred to in Section 7.5 (collectively, the “Contracts”), a current list of which is attached hereto as Schedule 1.8.  
1.9 Permits.  Seller’s right, title and interest in all permits, licenses, certificates of occupancy, if any, entitlements and governmental approvals that relate to the Land, Improvements, Personal Property, Leases, or Contracts, to the extent assignable (collectively, the “Permits”).
1.10 Intangibles.  Seller’s right, title and interest, if any, in and to the following items, to the extent assignable and without warranty:  consents, licenses, approvals, certificates, development rights, warranties (including all assignable termite warranties and bonds), resident and tenant files for current residents and tenants, if any and to the extent owned by Seller and assignable, transferable telephone exchange numbers, any web sites, web content, web design, links, Internet domain names, manuals and instruction materials, marketing materials relating to the Land, the Improvements and/or Personal Property, the names “Whitehall Parc” and “Whitehall Parc Apartment Homes”, but expressly excluding any name or trademark containing the phrase “GGT”, “CNL”, or any variation or derivative thereof, relating to the Land, the Improvements and/or Personal Property (collectively, the “Intangibles”).  

ARTICLE 2  PURCHASE PRICE AND DEPOSIT

2.1 Payment.  The purchase price for the Property (the “Purchase Price”) is FIFTY ONE MILLION TWO HUNDRED THOUSAND and 00/100 DOLLARS ($51,200,000.00).  The cash due at Closing on account of the Purchase Price shall be subject to adjustment as set forth in this Agreement.  The Purchase Price shall be paid by wire transfer of immediately available funds at the Closing.  Seller and Purchaser shall mutually agree, each acting in good faith, on the allocation of the Purchase Price among the Land, Personal Property and Improvements prior to the Closing.  Such agreed‐upon allocation shall be used solely for transfer, sales and similar tax purposes and in any declaration or filing with any governmental authority in connection with the same.  The allocation of the Purchase Price for all other purposes, whether for local, state or federal taxes or otherwise, shall not be restricted by this Agreement and shall not require the consent of the other party.

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2.2 Deposit.
2.2.1 No later than one (1) Business Day after the Effective Date, Purchaser shall deposit with Commonwealth Land Title Insurance Company, 265 Franklin Street, 8th Floor, Boston, Massachusetts 02110-3113, Attention: Robert J. Capozzi, Esq. (the “Escrow Agent” or “Title Company”), by bank wire transfer the sum of Seven Hundred and Fifty Thousand and 00/100 Dollars ($750,000.00), as a non-refundable deposit (except as otherwise provided herein) to assure Purchaser’s performance hereunder (together with all interest thereon if any, the “Initial Deposit”).  Prior to making the Initial Deposit, Seller, Purchaser and the Escrow Agent shall enter into an escrow agreement substantially in the form of Exhibit B attached hereto (the “Escrow Agreement”).  So long as Purchaser does not terminate this Agreement as provided in Section 5.1.4, then no later than one (1) Business Day following the expiration of the Study Period (as hereinafter defined), Purchaser shall deposit with the Escrow Agent by bank wire transfer the additional sum of Seven Hundred and Fifty Thousand and 00/100 Dollars ($750,000.00) (the “Second Deposit”), as a non-refundable deposit (except as otherwise provided herein) to assure Purchaser’s performance hereunder.  The Initial Deposit and the Second Deposit, in the total amount of $1,500,000.00, together with all interest thereon, if any, are referred to collectively as the “Deposit.”  
2.2.2
    Escrow Agent shall place the Initial Deposit and the Second Deposit (if made) in an interest-bearing escrow account at a federally-insured (to the extent of the FDIC limits) commercial bank acceptable to both Seller and Purchaser.  The Escrow Agent shall hold the Deposit in accordance with this Agreement and the Escrow Agreement.  At Closing (as hereinafter defined), Escrow Agent shall deliver the Deposit to Seller and credit the Deposit against the Purchase Price. 
2.2.3
    Each of Seller and Purchaser hereby designates Escrow Agent as the “Reporting Person” as such term is utilized in Section 6045 of the Internal Revenue Code of 1986, as amended, and regulations thereunder.  Each of Seller and Purchaser agrees to provide Title Company with such information as may be required for Title Company to file a Form 1099 or other required form relative to the Closing with the Internal Revenue Service. A copy of the filed Form 1099 or other filed form shall be provided to Seller and Purchaser simultaneously with its being provided to the Internal Revenue Service. 
ARTICLE 3  TITLE AND SURVEY

3.1 State of Title to be Conveyed.  Title to the Property shall be conveyed to Purchaser at Closing in fee simple by Special Warranty Deed, free and clear of any and all liens, mortgages, deeds of trust, security interests and other encumbrances, except for the following (collectively, the “Permitted Exceptions”): (i) real property taxes and assessments attributable to the Property for the year in which Closing occurs and thereafter, not yet due and payable; (ii) zoning and other regulatory laws and ordinances affecting the Property; (iii) any easement, right of way, limitation, encroachment, conflict, discrepancy, overlapping of improvements, protrusion, lien, encumbrance, restriction, condition, covenant, exception or other matter with respect to the Property that is reflected or addressed on the Survey or the Title Commitment to which Purchaser fails to timely object pursuant to Section 3.2.3 or 3.2.4 of this Agreement; (iv) subject to Purchaser’s rights under Sections 3.2.3 and 3.2.4, any Purchaser’s Objection (as hereinafter defined) that remains uncured, for whatever reason, at the earlier to occur of (A) Closing hereunder or (B) five (5) Business Days after Seller notifies Purchaser that Seller is unwilling or unable to cure or modify Purchaser’s Objections to the reasonable satisfaction of Purchaser, and (v) the rights and interests of parties claiming under the Leases.  
3.2 Title Commitment and Survey.

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3.1.1
    Seller shall obtain a title commitment (the “Title Commitment”) for an ALTA owner’s policy of title insurance (on the current ALTA 2006 Form) in the amount of the Purchase Price with respect to the Property issued by the Title Company.  Seller shall deliver copies of the Title Commitment and all items listed as title exceptions therein (to the extent provided to Seller by the Title Company) to Purchaser within ten (10) days after the Effective Date. 
3.1.2
    Purchaser may obtain, at Purchaser’s sole cost and expense, a survey of the Property (certified to include Seller) prepared by a licensed surveyor (the “Survey”) within ten (10) Business Days after the Effective Date.  Purchaser shall deliver a copy of the Survey to Seller and the Title Company within three (3) days after Purchaser’s receipt of the Survey. 
3.1.3
    If (i) the Survey shows any easement, right-of-way, encroachment, conflict, protrusion or other matter that is unacceptable to Purchaser, or (ii) any exceptions appear in the Title Commitment that are unacceptable to Purchaser, Purchaser shall, within five (5) days after the later of Purchaser’s receipt of the Title Commitment and the Survey, notify Seller in writing of such matters (“Purchaser’s Objections”).  Except for Purchaser’s Objections that are timely raised pursuant to the preceding sentence, Purchaser shall be deemed to have accepted the form and substance of the Survey, all matters shown thereon, and all exceptions to the Title Commitment and other items shown thereon.  Within five (5) days after Seller’s receipt of Purchaser’s Objections, Seller shall notify Purchaser in writing of the Purchaser’s Objections, if any, which Seller elects to attempt to cure at or prior to Closing.  Seller’s failure to provide such a notice will be deemed an election by Seller not to cure any Purchaser’s Objections. If Seller is unable or unwilling to eliminate or modify all of Purchaser’s Objections to the commercially reasonable satisfaction of Purchaser, Purchaser may (as its sole and exclusive remedy) terminate this Agreement by delivering written notice to Seller by the earlier to occur of (i) 5:00 p.m. (Eastern time) on the last day of the Study Period (as hereinafter defined) or (ii) five (5) days after Seller’s written notice (or deemed notice) to Purchaser of Seller’s intent to not cure one or more of such Purchaser’s Objections; in which event, the Deposit will be returned to Purchaser, and neither party shall have any rights or obligations under this Agreement (other than any obligations of either party that expressly survive termination).  
3.1.4
    If any revision or update to the Survey or any supplemental title commitment or update issued subsequent to the date of the original Title Commitment discloses any matters not set forth on the original Survey or the original Title Commitment, then, no later than the later of (i) the expiration of the Study Period, or (ii) five (5) days after Purchaser’s receipt of the updated Survey, or (iii) five (5) days after Purchaser’s receipt of the supplemented or updated Title Commitment, as applicable, Purchaser shall have the right to object to any such matter, in which event the same procedures for response, termination and waiver set forth above shall apply to such new Purchaser’s Objections.  Notwithstanding the foregoing, in the event that any such matter not set forth on the original Survey or the original Title Commitment is the result of an intentional act of Seller after the Effective Date that is not otherwise permitted under this Agreement, then Purchaser shall be permitted to pursue the remedies provided in Section 11.1 hereof.
3.1.5
    Notwithstanding anything contained herein to the contrary, Seller shall have no obligation to take any steps, bring any action or proceeding or incur any effort or expense whatsoever to eliminate, modify or cure any objection Purchaser may have pursuant to Section 3.2.3 or Section 3.2.4, except that Seller shall be required to remove from the Title Commitment any mortgage, judgment lien, mechanic’s lien or other lien or encumbrance on title placed on or caused to be placed on the Property which 

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can be discharged by the payment of a determinable sum of money or (except for mortgage liens) which can be affirmatively insured over by the Title Company (“Monetary Encumbrances”) prior to the Closing at Seller’s expense.
ARTICLE 4  PROPERTY INFORMATION

4.1 Property Information.  On or before the Effective Date, Seller shall make available to Purchaser, either at the property management office at the Property or via a due diligence website, the materials described on Schedule 4.1 attached hereto and any other materials Seller may include in such due diligence website (collectively, the “Property Information”).  Purchaser shall keep such Property Information confidential, subject to Purchaser’s right to disseminate Property Information to or among the parties listed in Section 15.17 of this Agreement, and subject to the restrictions set forth in Section 15.17.  Seller makes no representation or warranty as to the truth or accuracy of the Property Information provided to Purchaser, except as otherwise expressly provided in this Agreement.
ARTICLE 5  PURCHASER’S DUE DILIGENCE

5.1 Purchaser’s Due Diligence
5.1.1 Subject to the provisions of this Section, Purchaser and its agents, employees, consultants, inspectors, appraisers, engineers and contractors (collectively “Purchaser's Representatives”) shall have the right, through the Closing Date, from time to time, upon the advance notice required pursuant to this Section 5.1, to enter upon and pass through the Property during normal business hours to examine and inspect the same.  Notwithstanding any such inspection, or anything to the contrary contained herein, Purchaser's obligations hereunder shall not be limited or otherwise affected as a result of any fact, circumstance or other matter of any kind discovered following the date hereof in connection with any such inspection, access or otherwise; it being agreed that Seller is permitting Purchaser such right of inspection and access as a courtesy to Purchaser in its preparation for taking title to the Property.  Without limiting the generality of the foregoing, (i) Purchaser agrees that it shall not have the right to terminate this Agreement or obtain a reduction of the Purchase Price as a result of any such fact, circumstance or other matter so discovered (including, without limitation, relating to the physical condition of the Property, the operations of the Property or otherwise), except as provided in Section 5.1.4 below and (ii) Purchaser shall have no right to terminate this Agreement or obtain a return of the Deposit except as expressly provided in this Agreement.  
5.1.2 In conducting any inspection of the Property or otherwise accessing the Property, Purchaser shall at all times comply with all laws and regulations of all applicable governmental authorities, and neither Purchaser nor any of Purchaser's Representatives shall (i) contact or have any discussions with any of Seller's employees, agents or representatives, or with any tenants (including, without limitation, having any contacts whatsoever with tenants, including but not limited to telephone conversations or electronic mail messages) at, or contractors providing services to, the Property, unless in each case Purchaser obtains the prior written consent of Seller (which may be given via electronic mail), it being agreed that all such contacts or discussions shall, pending any such approval, be directed to Bill Yeager via electronic mail (at Bill.Yeager@cnl.com), (ii) interfere with the business of Seller conducted at the Property or disturb the use or occupancy of any tenant or occupant of the Property or (iii) damage the Property.  In conducting any inspection of the Property or otherwise accessing the Property, Purchaser and Purchaser's Representatives shall at all times comply with, and shall be subject to, the rights of the tenants under the Leases (and any persons claiming by, under or through such tenants).  Seller may from time to time establish reasonable rules of conduct for Purchaser and Purchaser's Representatives in furtherance of the foregoing, and Purchaser shall comply with all of Seller’s requirements regarding entry upon the Property.  

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Purchaser shall schedule and coordinate all inspections, including, without limitation, any environmental tests, and other access with Seller and shall give Seller at least two (2) Business Days’ prior notice thereof.  Seller shall be entitled to have a representative present at all times during each such inspection or other access.  Purchaser agrees to pay to Seller on demand the cost of repairing and restoring any damage or disturbance which Purchaser or Purchaser's Representatives shall cause to the Property.  All inspection fees, appraisal fees, engineering fees and other costs and expenses of any kind incurred by Purchaser or Purchaser's Representatives relating to such inspection and its other access shall be at the sole expense of Purchaser.  Purchaser shall keep all information obtained during its inspections and access to the Property confidential, subject to and in accordance with Section 15.17 hereof.  If the Closing shall not occur for any reason whatsoever, Purchaser shall:  (A) promptly deliver to Seller, at no cost to Seller, and without representation or warranty, the originals of all tests, reports and inspections of the Property, made and conducted by Purchaser or Purchaser's Representatives or for Purchaser's benefit that are in the possession or control of Purchaser or Purchaser's Representatives; (B) promptly return to Seller copies of all due diligence materials delivered by Seller to Purchaser; and (C) promptly destroy all copies and abstracts of the materials referenced in (A) and (B) above (except that Purchaser shall be permitted to retain a copy for purposes of complying with any document retention policy, provided that such copy shall remain subject to the confidentiality provisions of Section 15.17 hereof).  Purchaser and Purchaser's Representatives shall not be permitted to conduct borings of the Property or drilling in or on the Property, or any other invasive, intrusive or destructive testing in connection with the preparation of an environmental audit or in connection with any other inspection of the Property without the prior written consent of Seller, which Seller may give or withhold in its sole discretion (and, if such consent is given, Purchaser shall be obligated to pay to Seller on demand the cost of repairing and restoring any damage as aforesaid).  This Section 5.1.2 shall survive the Closing or any termination of this Agreement.
5.1.3 Prior to conducting any physical inspection or testing at the Property, Purchaser and Purchaser’s Representatives shall obtain, and during the period of such inspection or testing shall maintain, at their expense: a comprehensive general liability insurance policy, including, but not limited to, owned and non-owned vehicle liability, personal injury, blanket contractual, broad form property damage and product/completed operations liability coverage covering any and all liability of Purchaser and Purchaser’s Representatives with respect to or arising out of any inspections of the Property to be performed by or for Purchaser or Purchaser’s Representatives under this Agreement with limits of not less than One Million Dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage liability.  Purchaser or Purchaser’s Representatives shall have a workers’ compensation insurance policy covering, respectively, the activities of all Purchaser’s or Purchaser’s Representatives employees on or about any Property.  Notwithstanding the foregoing sentences, any contractor who is gaining entry for the purpose of conducting any testing or a Phase I environmental report shall be required to maintain insurance (which may include excess umbrella liability coverage) in an amount of no less than Two Million Dollars ($2,000,000) per occurrence.  Prior to making any entry upon the Property, Purchaser shall furnish to Seller a certificate of insurance evidencing the foregoing coverages, which certificate of insurance shall be in form and substance satisfactory to Seller. 
5.1.4 Purchaser shall have until 5:00 p.m. (Eastern time) on July 15, 2016 (the “Study Period”) within which to determine, in its sole discretion, whether all matters related to the Property are satisfactory to Purchaser.  If Purchaser, in its sole discretion, determines that the purchase of the Property is not feasible or that Purchaser does not desire to proceed with the transactions contemplated under this Agreement (for any or no reason), then Purchaser shall deliver to Seller, prior to the expiration of the Study Period, written notice that Purchaser does not desire to proceed with the transactions contemplated under this Agreement and in such case, this Agreement shall terminate upon Seller’s receipt of such notice, except for those matters which are indicated herein as surviving termination, and the Deposit shall be immediately 

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returned to Purchaser.  If Purchaser fails to timely notify Seller prior to the expiration of the Study Period (with time being of the essence) that Purchaser does not desire to proceed with the transactions contemplated under this Agreement as aforesaid, then Purchaser shall be deemed to have waived its right to terminate this Agreement under this Section 5.1.4.  
5.1.5 Purchaser hereby agrees to indemnify, defend, and hold harmless Seller, its partners, members, affiliates, property manager, and their respective officers, directors, agents, employees, and representatives (collectively, the “Indemnified Parties”) from and against any and all liens, claims, or damages of any kind or nature, including any demands, actions or causes of action, assessments, losses, costs, expenses, liabilities, interest and penalties, and reasonable attorneys’ fees suffered, incurred, or sustained by any of the Indemnified Parties directly caused by Purchaser or Purchaser’s Representatives with respect to any due-diligence activities at the Property pursuant to this Agreement, except any arising from the discovery of preexisting conditions (so long as Purchaser does not exacerbate any such condition).  Notwithstanding the foregoing, in no event shall Seller seek, or Purchaser be liable to any Indemnified Party for, any punitive or consequential damages.  This Section 5.1.5 shall survive the Closing or any termination of this Agreement.
5.2 As Is, Where Is.
5.2.1 Except as provided in the express representations and warranties of Seller set forth in Sections 6.1 and 12 of this Agreement and in Seller’s Special Warranty Deed and the Bill of Sale (all as hereinafter defined) (collectively, the “Express Representations”), Seller does not, by the execution and delivery of this Agreement, and Seller shall not, by the execution and delivery of any document or instrument executed and delivered in connection with the Closing, make any representation or warranty, express or implied, of any kind or nature whatsoever, with respect to the Property, and all such warranties are hereby disclaimed.
5.2.2 Without limiting the generality of the foregoing, other than the Express Representations, Seller makes, and shall make, no express or implied warranty as to matters of title, zoning, acreage, tax consequences, physical or environmental condition (including, without limitation, laws, rules, regulations, orders and requirements pertaining to the use, handling, generation, treatment, storage or disposal of any toxic or hazardous waste or toxic, hazardous or regulated substance), valuation, governmental approvals, governmental regulations or any other matter or thing relating to or affecting the Property (collectively, the “Disclaimed Matters”).  
5.2.3 Notwithstanding anything to the contrary set forth in this Agreement, but subject to the Express Representations and Seller’s obligations set forth in Section 7.1 of this Agreement, and subject to Article 10 hereof, the Property, including without limitation the roofs, all structural components, all heating, ventilating, air conditioning, mechanical, plumbing, and electrical systems, fire and life safety and all other parts of the Improvements constituting a portion of the Property, shall be conveyed to Purchaser, and Purchaser shall accept same, in their “AS IS” “WHERE IS” condition on the Closing Date, “WITH ALL FAULTS” and “SUBJECT TO ALL DEFECTS.”  Purchaser acknowledges that Seller’s willingness to sell the Property to Purchaser at the Purchase Price has been induced, in part, by the agreement of Purchaser to purchase the Improvements and the Personal Property in such “AS IS” condition.  Purchaser hereby acknowledges, represents and warrants that it is not in a disparate bargaining position with respect to Seller in connection with the transaction contemplated hereby, that Purchaser freely and fairly agreed to the waivers and conditions of this Section 5.2 as part of the negotiations of this Agreement, and Purchaser has been represented by adequate legal counsel in connection herewith and has conferred with such legal counsel concerning the waivers and other conditions of this Section 5.2.

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5.2.4 Without in any way limiting any provision of this Section 5.2, Purchaser specifically acknowledges and agrees that, except with respect to the Express Representations and the obligations of Seller set forth in Section 7.1 of this Agreement, and subject to Article 10 hereof, Purchaser hereby waives, releases and discharges any claim it has, might have had or may have against Seller with respect to (i) the Disclaimed Matters, (ii) the condition of the Property as of the Closing Date, (iii) the past, present or future condition or compliance of the Property with regard to any environmental protection, pollution control or land use laws, rules, regulations, orders or requirements, including, without limitation, CERCLA (as hereinafter defined), or (iv) any other state of facts that exists with respect to the Property.  The waiver, release and discharge set forth in this Section 5.2.4 shall survive the Closing or any termination of this Agreement.  Nothing contained in this Agreement shall constitute an agreement to indemnify, defend, or hold Seller harmless from or against any claim, loss, damage, liability, cost or expense (including, without limitation, attorney’s fees and costs) brought by any third party or governmental authority against Seller for the time period during which Seller owned the Property.
ARTICLE 6  REPRESENTATIONS AND WARRANTIES

6.1 Seller’s Representations and Warranties.  Seller represents to Purchaser as of the Effective Date as follows:  
6.1.1 Organization.  Seller is a Delaware limited liability company, duly formed and validly existing under the laws of the State of Delaware and in good standing under the laws of the State of North Carolina.  
6.1.2 Authority/Consent.  Seller possesses all requisite power and authority, and has taken all actions required by its organizational documents and applicable law, to execute and deliver this Agreement and will by Closing have taken all actions required by its organizational documents and applicable law, to consummate the transactions contemplated by this Agreement.
6.1.3 Litigation.  Except as may be disclosed on Schedule 6.1.3 attached hereto, no material action, suit or other proceeding (including, but not limited to, any condemnation action or real estate tax appeal) is pending or, to Seller’s knowledge, has been threatened in writing that concerns or involves the Property.  
6.1.4 Bankruptcy.  No bankruptcy, insolvency, reorganization or similar action or proceeding, whether voluntary or involuntary, is pending, or, to Seller’s knowledge, threatened, against Seller.
6.1.5 Contracts.  Except for the Contracts referenced on Schedule 1.8, there are no current material contracts of construction, employment, parking, maintenance, commission, locator fee, referral fee, management, service, or supply in effect and entered into by Seller, or to Seller’s knowledge, that are otherwise binding on Seller, which will affect the Property after Closing.  Seller has provided Purchaser with true, correct and complete copies, in all material respects, of all Contracts, including all amendments and modifications thereof, prior to the execution of this Agreement by Purchaser and Seller.
6.1.6 Employees.  Seller has no employees, nor is Seller is an employee benefit plan (a “Plan”) subject to ERISA, or Section 4975 of 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 sale 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.

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6.1.7 Leases.  Except for (i) the Leases referenced on the Rent Roll, (ii) the Licenses referenced on Schedule 1.5, and (iii) the leases, amendments or other occupancy agreements which may be entered into by Seller pursuant to Section 7.1 of this Agreement, there are no leases, rental agreements, licenses, license agreements or other occupancy agreements with anyone in effect which will affect the Property after Closing.  To Seller’s knowledge, each Lease is in full force and effect and Seller is not in material default under any Lease.  Seller will provide Purchaser with true, correct and complete copies of all Leases, including all amendments and modifications thereto, as part of the Property Information.  Except as set forth on the Rent Roll, (i) no security deposit, last month’s rent or other prepaid rent has been collected from any tenant, and (ii) no Lease has a term longer than one (1) year.
6.1.8 Violations of Law.  Except as set forth on Schedule 6.1.8, Seller has not received written notice from any governmental authority of any material violation of any federal or municipal laws, ordinances, orders, regulations and requirements affecting the Property or any portion thereof (including the conduct of business operations thereon) which are unresolved, and, to Seller’s knowledge, there are no such material violations.  
6.1.9 Foreign Person.  Seller is not a “foreign person,” “foreign trust” or “foreign corporation” within the meaning of the United States Foreign Investment in Real Property Tax Act of 1980 and the Internal Revenue Code of 1986, as subsequently amended (the “Code”).
6.1.10 No Conflicts.  The execution and delivery of this Agreement by Seller and the consummation by Seller of the transactions contemplated hereby will not: (i) violate any judgment, order, injunction, or decree to which Seller or the Property is subject, or (ii) conflict with, result in a breach of, or constitute a default under the organic documents of Seller or any lease, mortgage, loan agreement, covenant, or other agreement or instrument to which Seller is a party or by which Seller or the Property may be bound.
6.1.11 Prohibited Transaction.  Neither Seller nor any person, group, entity or nation that Seller is acting, directly or indirectly for, or on behalf of, is named by any Executive Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism) or the United States Treasury Department as a terrorist, "Specially Designated National and Blocked Person," or is otherwise a banned or blocked person, group, entity, or nation pursuant to any Law that is enforced or administered by the Office of Foreign Assets Control, and Seller is not engaging in the transactions contemplated by this Agreement, directly or indirectly, on behalf of, or instigating or facilitating the transactions contemplated by this Agreement, directly or indirectly, on behalf of, any such person, group, entity or nation.  Seller is not engaging in the transactions contemplated by this Agreement, directly or indirectly, in violation of any laws relating to drug trafficking, money laundering or predicate crimes to money laundering.  None of the funds of Seller have been or will be derived from any unlawful activity with the result that the investment of direct or indirect equity owners in Seller is prohibited by law or that the transactions contemplated by this Agreement or this Agreement is or will be in violation of applicable law.  Seller has and will continue to implement procedures, and has consistently and will continue to consistently apply those procedures, to ensure the foregoing representations and warranties remain true and correct at all times prior to Closing. 
6.1.12 Seller has not received any written notice from any governmental agency that any special assessments are pending or will be levied against the Property.
6.1.13 Seller has not received written notice from any party to any restriction, covenant or other agreement with respect to which the Property is bound of any material violation thereof which has not been cured.

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6.1.14 Except as set forth in the Rent Roll, no unit in the Property is subject to (i) any rent subsidies or rental assistance programs; or (ii) any rent control law, ordinance or regulation or any legal requirement, covenant, restriction or other agreement imposing affordable housing eligibility or rent restrictions.
6.1.15 Attached hereto as Schedule 6.1.15 is a list of all personal property and equipment owned or leased by Seller in connection with the operation of the Property. Seller owns all such personal property and equipment free and clear of any liens and encumbrances (including leases), except for the liens and encumbrances set forth on Schedule 6.1.15.
6.1.16 The operating statements of Seller with respect to the Property for the fiscal year ended December 31, 2013 and the year-to-date interim operating statements for the period through [May 31, 2016], delivered to Purchaser pursuant to this Agreement are the ones that Seller uses for its own internal purposes and reporting to its lender.  No material adverse change has occurred from the respective dates of such operating statements to the date hereof.
6.1.17 To Seller’s knowledge, the Licenses listed on Schedule 1.5 attached hereto are all of the governmental licenses, permits and approvals necessary for the use and operation of the Property. To Seller’s Knowledge, all of the Licenses are in full force and effect, and Seller has not taken or failed to take any action that would result in the revocation, suspension or limitation of any License, nor received any written notice of an intention to revoke, suspend or limit any License.
6.1.18 Seller has no knowledge of any violation of any Environmental Liability (as defined below) related to the Property or the presence or release of any hazardous materials (including mold) on or from the Property except as disclosed in the environmental reports listed in Schedule 6.1.18 attached hereto (the “Environmental Reports”).  Except as disclosed in the Environmental Reports and for de minimis amounts of hazardous materials used, stored and disposed of in connection with the ordinary maintenance and operation of the Property, Seller has not manufactured, introduced, released or discharged from or onto the Property any hazardous materials or any toxic wastes, substances or materials (including, without limitation, asbestos) and Seller has not used the Property or any part thereof for the generation, treatment, storage, handling or disposal of any hazardous materials. To the best of Seller’s knowledge, except as set forth in the Environmental Reports, there are no underground storage tanks located on or which the Property.  Seller is not aware of any environmental assessments or studies which exist with respect to the Property except for the Environmental Reports.  As used herein, “Environmental Liabilities” shall mean any and all liabilities with respect to the structural, physical, or environmental condition of the Property, including, without limitation, all liabilities relating to the release, presence, discovery or removal of any hazardous or regulated substance, chemical, waste or material that may be located in, at, about or under the Property, or connected with or arising out of any and all claims or causes of action based upon CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§9601 et seq., as amended by SARA (Superfund Amendment and Reauthorization Act of 1986) and as may be further amended from time to time), the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §§6901 et seq., or any related claims or causes of action (each, an “Environmental Law”)
6.2 Purchaser’s Representations and Warranties.  Purchaser represents to Seller, as of the Effective Date, as follows:  

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6.2.1 Organization.  Purchaser is a limited liability company, duly formed, validly existing and in good standing under the laws of the State of Delaware, and qualified to do business in the State of North Carolina.
6.2.2 Authority/Consent.  Purchaser possesses all requisite power and authority, has taken all actions required by its organizational documents and applicable law, and has obtained all necessary consents, to execute and deliver this Agreement and will by Closing have taken all actions required by its organizational documents and applicable law, to consummate the transactions contemplated in this Agreement.
6.2.3 Prohibited Transaction.  Neither Purchaser nor any person, group, entity or nation that Purchaser is acting, directly or indirectly for, or on behalf of, is named by any Executive Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism) or the United States Treasury Department as a terrorist, "Specially Designated National and Blocked Person," or is otherwise a banned or blocked person, group, entity, or nation pursuant to any Law that is enforced or administered by the Office of Foreign Assets Control, and Purchaser is not engaging in the transactions contemplated by this Agreement, directly or indirectly, on behalf of, or instigating or facilitating the transactions contemplated by this Agreement, directly or indirectly, on behalf of, any such person, group, entity or nation.  Purchaser is not engaging in the transactions contemplated by this Agreement, directly or indirectly, in violation of any laws relating to drug trafficking, money laundering or predicate crimes to money laundering.  None of the funds of Purchaser have been or will be derived from any unlawful activity with the result that the investment of direct or indirect equity owners in Purchaser is prohibited by law or that the transactions contemplated by this Agreement or this Agreement is or will be in violation of applicable law.  Purchaser has and will continue to implement procedures, and has consistently and will continue to consistently apply those procedures, to ensure the foregoing representations and warranties remain true and correct at all times prior to Closing.
6.2.4 ERISA.  Purchaser is not an employee pension benefit plan subject to the provisions of Title IV of the Employee Retirement Income Security Act of 1974, as in effect from time to time (“ERISA”) or subject to the minimum funding standards under Part 3, Subtitle B, Title I of ERISA or Section 412 of the Code or Section 302 of ERISA, and none of its assets constitutes or will constitute assets of any such employee benefit plan subject to Part 4, Subtitle B, Title I of ERISA.  Purchaser is not a “governmental plan” within the meaning of Section 3(32) of ERISA and the funds used by Purchaser to acquire the Interest are not subject to any state statutes regulating investments of and fiduciary obligations with respect to governmental plans.  The transactions contemplated by this Agreement are not specifically excluded by Part I(b) of PTE 84-14. 
6.3 Knowledge.  For purposes of this Agreement, the phrase “to Seller’s knowledge” means the present, actual knowledge of Michael Tetrick and Bill Yeager (the “Seller Knowledge Individual”), who are knowledgeable with respect to the Property, without investigation or review of files relating to the Property.  In no event shall either Seller Knowledge Individual have any personal liability hereunder.  
6.4 Survival.  All of the representations and warranties set forth in this Article 6 shall survive the Closing for a period of one hundred and eighty (180) days, subject to the provisions of Section 11.1 of this Agreement (the “Survival Period”).  Purchaser shall provide Seller with written notice (a “Notice of Breach”) of any alleged breach or failure of any representation or warranty made by Seller and specifying the nature thereof prior to the expiration of the Survival Period.  Purchaser shall commence any action, suit, or proceeding with respect to any breach or failure that is the subject of the Notice of Breach, if at all (as provided below), on or before the date that is sixty (60) days after the expiration of the Survival Period (“Suit Deadline”).  Seller acknowledges and agrees that the resolution of such action, suit, or proceeding 

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may not occur until after the expiration of the Survival Period, and the Survival Period shall be deemed to be tolled with respect to (and only with respect to) any alleged breach or failure of a representation or warranty of which Seller receives a Notice of Breach before the expiration of the Survival Period, provided Purchaser files an action, suit, or proceeding, and serves Seller, with respect thereto prior to the Suit Deadline.  Notwithstanding the foregoing to the contrary, Seller shall have no liability in connection with this Agreement by reason of any inaccuracy of a representation or warranty if, and to the extent that, such inaccuracy is disclosed in writing to Purchaser or otherwise included in the Property Information at the time of the Closing and Purchaser elects, nevertheless, to consummate the transaction contemplated hereby.  
ARTICLE 7  COVENANTS OF PURCHASER AND SELLER
7.1 Operation of Property.  From the Effective Date until the earlier of (i) the termination of this Agreement, and (ii) Closing, Seller shall operate the Property in accordance with the terms of this Section 7.1.
7.1.1 (a)    From the Effective Date until the Closing, Seller shall continue to market the Property to prospective tenants, enter into Leases in the ordinary course of business and Seller’s historical practices, and operate, maintain, and repair the Property in accordance with the ordinary course of business with Seller’s historical practices.  However, Seller shall not take any of the following actions after the expiration of the Study Period without the prior written consent of Purchaser, which consent shall not be unreasonably withheld, conditioned or delayed:  
		
	(i) 
	make or permit to be made any material alterations to or upon the Property except as required under Section 7.2 hereof;

		
	(ii) 
	enter into any contracts for the provision of services and/or supplies to the Property which are not terminable without premium or penalty by Purchaser upon thirty (30) days’ prior written notice following the Closing, or amend or modify the Contracts in any manner, unless such Contract as amended may be terminated without premium or penalty upon thirty (30) days’ prior written notice, or knowingly fail to timely perform its material obligations under the Contracts (provided that in the case of emergency or other exigent circumstances, Seller shall have the right to enter into contracts to perform repairs or replacements without Purchaser’s consent);

		
	(iii) 
	encumber, sell or transfer the Property or any interest therein or alter or amend the zoning classification of the Land or Improvements; or 

		
	(iv) 
	settle, compromise, withdraw or terminate any real estate tax appeal or proceeding affecting the Property other than any relating solely to periods prior to calendar year 2016 (which Seller retains the full and unfettered right to settle or compromise, and any refunds applicable to such period shall belong solely to Seller). 

Prior to the expiration of the Study Period, Seller shall have the right to take any of the aforesaid actions without obtaining Purchaser’s consent thereto, but Seller shall keep Purchaser reasonably informed as to material actions Seller has taken or proposes to take. 
(b)    Whenever in this Section 7.1.1 Seller is required to obtain Purchaser’s consent with respect to any proposed action or transaction, Purchaser shall, within five (5) Business Days after receipt of Seller’s written request therefor, notify Seller of its approval or disapproval of same and, if 

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Purchaser fails to notify Seller in writing of its disapproval within said five (5) Business Day period, Purchaser shall be deemed to have approved same.      
7.1.2
    Prior to the expiration of the Study Period, Purchaser shall review the Contracts to determine, among other things, whether such Contracts are terminable, and to determine whether Purchaser desires to assume any of such Contracts.  Not later than the expiration of the Study Period, Purchaser shall deliver a notice to Seller setting forth which of such Contracts, if any, that Purchaser elects to have Seller attempt to terminate.  Seller will deliver notices of termination at Closing canceling such Contracts as Seller is timely notified of by Purchaser.  At Closing, Seller shall assign to Purchaser, and Purchaser shall assume, the Contracts (as identified on Schedule 1.8 hereto) not required to be terminated by Seller as aforesaid pursuant to the Bill of Sale and Assignment and Assumption Agreement.  Seller shall cause Seller’s existing property management agreement to be terminated effective as of the Closing Date.  Notice of termination for all Contracts not assumed by Purchaser shall be given by Seller not later than the Closing Date and any charges accruing thereunder on or after the Closing Date and through the date of actual termination shall be the responsibility of Seller. The provisions of this Section 7.1.2 shall survive Closing. 
7.2 Governmental Notices.  Promptly after receipt, Seller shall provide Purchaser with copies of any written notices that Seller receives with respect to (i) any special assessments or proposed increases in the valuation of the Property; (ii) any condemnation or eminent domain proceedings affecting the Property; or (iii) any violation of any Environmental Law or any zoning, health, fire, safety or other law, regulation or code applicable to the Property.  In addition, Seller shall deliver or cause to be delivered to Purchaser, promptly upon receipt thereof by Seller, copies of any written notices of default given or received by Seller under any of the Leases or Contracts.
7.3 Litigation.  Seller will advise Purchaser promptly of any litigation, arbitration proceeding or administrative hearing that materially affects Seller or the Property and that is instituted after the Effective Date. 
7.4 Tradenames and Service Marks.
7.4.1 Purchaser hereby acknowledges and agrees that the term “CNL”, “GGT”, any other trade name or service mark which includes the term “CNL”, “GGT” or any other trade name or service mark of Seller or its members (hereinafter collectively referred to as the “Marks”), and each of them, are trade names and service marks of an affiliate of Seller (“Mark Owner”); that the Marks, and each of them, are the sole and exclusive property of Mark Owner, which owns all right, title, and interest in and to the Marks, and each of them; and that, by this Agreement, Purchaser shall acquire no ownership right or interest of any kind in or to the Marks, or any of them.  Purchaser further acknowledges and agrees that any use by Purchaser of the Marks, or any of them, in any manner in connection with the Property or otherwise, will result in immediate and irreparable injury to Seller and its affiliates, including, Mark Owner, and that Seller and/or its affiliates, including, Mark Owner, shall be entitled to temporary, preliminary, and permanent injunctive relief against Purchaser in the event of any such use of the Marks, or any of them, by Purchaser, or in the event of any other violation by Purchaser of this Section 7.4.1.  Purchaser may continue to use “Whitehall Parc” in the name of the Property after Closing provided Purchaser does not use the “GGT” or “CNL” names or any of the Marks; provided, however, nothing contained herein shall be deemed to be a warranty of Seller’s or Purchaser’s right to use such names. 
7.4.2 This Section 7.4 shall survive the Closing. 
7.5 Surety and Maintenance Bonds.

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7.5.1 Seller and/or its affiliates were required to provide surety and/or maintenance bonds in connection with the construction of the Property as specified on Schedule 7.5 hereto.  As a condition to Seller’s obligation to close and consummate the transaction contemplated herein, Purchaser agrees that concurrently with the Closing Purchaser shall be required to provide substitute surety and/or maintenance bonds to replace those listed on Schedule 7.5 hereto so that Seller will be able to have the existing surety and/or maintenance bonds returned to Seller on the Closing Date.
7.5.2 This Section 7.5 shall survive the Closing.

ARTICLE 8  CONDITIONS PRECEDENT TO CLOSING

8.1 Conditions Precedent to Purchaser’s Obligation to Close.  Purchaser’s obligation to purchase the Property is subject to satisfaction on or before the Closing Date (as such date may be extended as provided herein) of the following conditions, any of which may be waived in writing by Purchaser in Purchaser’s sole and absolute discretion.
8.1.1 Seller shall have performed and observed, in all material respects, all covenants of Seller under this Agreement.
8.1.2 Subject to the provisions of Section 8.4 below, all representations and warranties of Seller set forth in this Agreement shall be true and correct in all material respects as if made on the Closing Date. 
8.2 Conditions Precedent to Seller’s Obligation to Close.  Seller’s obligation to sell the Property is subject to satisfaction, on or before the Closing Date (as such date may be extended as provided herein) of the following conditions, any of which may be waived in writing by Seller, in Seller’s sole and absolute discretion:  
8.2.1 Purchaser shall have performed and observed, in all material respects, all covenants of Purchaser under this Agreement.  
8.2.2 All representations and warranties of Purchaser set forth in this Agreement shall be true and correct in all material respects as if made on the Closing Date.  
8.3 Failure of a Condition
8.3.1 In the event that any condition precedent to Closing has not been satisfied on or before the Closing Date, then the party whose conditions to Closing have not been satisfied (the “Unsatisfied Party”) shall give notice to the other party of the condition or conditions which the Unsatisfied Party asserts are not satisfied.  If the conditions specified in such notice are not satisfied within ten (10) Business Days after receipt of such notice, then the party whose condition precedent was not satisfied may terminate this Agreement, whereupon neither party shall have any further rights or obligations hereunder (other than any obligations of either party that expressly survive termination) and the Deposit shall be returned to Purchaser; provided, however, that if such failure of a condition is due to a default by one of the parties, the disposition of the Deposit shall be governed solely by Article 11 of this Agreement and not by this Section 8.3.1.  Notwithstanding anything contained herein to the contrary, if any of the conditions precedent to Purchaser’s obligation to close, as set forth in Section 8.1 of this Agreement, are not satisfied within the ten (10) Business Day period specified above and the same are reasonably susceptible of being cured, Seller shall have the right to extend such period in which to satisfy the unsatisfied condition for a period of up to 

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thirty (30) additional days, by giving notice thereof to Purchaser within such ten (10) Business Day period.  Further, Purchaser shall have the right to waive the unsatisfied condition or conditions, by notice to Seller within five (5) Business Days after expiration of the applicable satisfaction period, without satisfaction having occurred, in which event the Closing Date shall be the date which is five (5) Business Days after Seller’s receipt of Purchaser’s waiver notice.  
8.3.2
    If the transaction contemplated by this Agreement closes, the parties shall be deemed to have waived any and all unmet or unsatisfied conditions, other than any unmet or unsatisfied conditions arising out of a breach by either party of any of its representations and warranties hereunder of which the other party has no knowledge as of Closing. 
8.4 Representations and Warranties.  All representations and warranties made by Seller in this Agreement shall be true and correct in all material respects as of the Closing Date and Seller shall have performed all material covenants to be performed by Seller pursuant to this Agreement.  If said representations and warranties made by Seller are materially true and correct, the parties shall proceed to Closing.  If any such representations and warranties are false in any material respect on the Closing Date, Purchaser shall have the rights set forth in Paragraph 11.1 herein.  For purposes hereof, a representation or warranty shall not be deemed to have been breached if the representation or warranty is not true and correct in all material respects as of the Closing Date by reason of changed facts or circumstances which pursuant to the terms of this Agreement are permitted to have occurred.
ARTICLE 9  CLOSING

9.1 Closing Date.  The consummation of the transaction contemplated hereby (the “Closing”) will take place at the office of Escrow Agent, via an escrow closing, on August 1, 2016 (with time being of the essence with respect thereto), or such earlier date as Seller and Purchaser may mutually agree upon in writing (the “Closing Date”).  Purchaser and Seller agree to finalize and execute all documents necessary for the consummation of the transaction contemplated herein, including but not limited to the settlement statement, and to deliver all such documents to the Title Company in escrow not later than the end of the Business Day immediately preceding the Closing Date in order to ensure the orderly and timely transfer of all funds necessary for Closing by not later than 1:00 p.m. (Eastern time) on the Closing Date.  
9.2 Seller’s Obligations at the Closing.  At the Closing, Seller will do, or cause to be done, the following:  
9.2.1 Closing Documents.  Seller shall execute, acknowledge (if necessary) and deliver originals of the following documents:  
9.2.1.1 Special Warranty Deed in the form of Exhibit C hereto (the “Deed”), Seller and Purchaser agreeing that the Deed will contain a Restriction Against Condominium Conversion substantially in the form attached; 
9.2.1.2 Bill of Sale in the form of Exhibit D hereto; 
9.2.1.3 Assignment and Assumption Agreement in the form of Exhibit E hereto;
9.2.1.4 Letters to each tenant under the Leases in the form of Exhibit F hereto, notifying tenants of the conveyance of the Property to Purchaser and advising them that, following the Closing Date, all future payments of rent are to be made in the manner set forth therein; 

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9.2.1.5 Settlement statement showing all of the payments, adjustments and prorations provided in Section 9.5 and otherwise agreed upon by Seller and Purchaser;
9.2.1.6 A rent roll for the Property dated as of the Closing Date;
9.2.1.7 Subject to Section 8.4, a certificate stating that each of Seller’s representations and warranties contained in this Agreement is true and correct in all material respects as of the Closing Date;
9.2.1.8 A duly executed affidavit in a form customarily used for commercial real estate transactions in the State of North Carolina and which is acceptable to the Title Company, showing among other things that all debts for labor and materials in respect of the Property incurred by or on behalf of Seller have been paid in full and that there are no (i) Monetary Encumbrances, or (ii) outstanding claims, suits, debts, rights of occupancy, encumbrances, liens or judgments against the Property, except in the case of this clause (ii) for matters approved or waived by Purchaser pursuant to Article III hereof.
9.2.1.9 Such evidence as is reasonably required by the Title Company evidencing the authority of Seller and those individuals acting on behalf of Seller to enter into this Agreement and consummate the transaction contemplated herein. and
9.2.1.10 Copies of notices of termination of such other Contracts that Purchaser elected to have terminated in accordance with Section 7.1.2. 
9.2.2 Original Property Information Documents.  Seller will deliver to Purchaser originals within Seller’s possession of all items constituting the Property Information referenced in Article 4.
9.2.3 Possession.  Seller will deliver to Purchaser possession of the Property, subject to the Leases.
9.2.4 Keys.  Seller will deliver to Purchaser all keys for the Property in the possession or subject to the control of Seller, including, without limitation, master keys as well as combinations, card keys and cards for the security systems, if any.
9.2.5 Costs.  Seller will pay all costs allocated to Seller pursuant to Section 9.5 of this Agreement.
9.3 Purchaser’s Obligations at the Closing.  At the Closing, Purchaser will do, or cause to be done, the following:
9.3.1 Closing Documents.  At Closing, Purchaser shall execute, acknowledge (if necessary) and deliver originals of the following documents:
9.3.1.1 Bill of Sale in the form of Exhibit D hereto;
9.3.1.2 Assignment and Assumption Agreement in the form of Exhibit E hereto; 
9.3.1.3 Settlement statement showing all of the payments, adjustments and prorations provided for in Section 9.5 and otherwise agreed upon by Seller and Purchaser;

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9.3.1.4 Such evidence as may be reasonably required by the Title Company with respect to the authority of the person(s) executing the documents required to be executed by Purchaser on behalf of Purchaser; and
9.3.1.5 A certificate stating that each of Purchaser’s representations and warranties contained in this Agreement is true and correct in all material respects as of the Closing Date.  
9.3.2 Payment of Consideration.  Purchaser shall pay to Escrow Agent by bank wire transfer of immediately available funds at Closing the Purchase Price in accordance with Article 2 of this Agreement (subject to the credits, prorations and adjustments provided hereby).  The net closing proceeds due to Seller shall be wire transferred to such account or accounts as Seller may designate, and actually received in such account or accounts, not later than 1:00 p.m. (Eastern time) on the Closing Date (the “Wiring Deadline”), with time being strictly of the essence with respect thereto.  
9.3.3 Costs.  Purchaser will pay all costs allocated to Purchaser pursuant to Section 9.5 of this Agreement.
 9.4 Escrow.  The delivery of the documents and the payment of the sums to be delivered and paid at the Closing shall be accomplished through an escrow with the Escrow Agent.  
9.5 Costs and Adjustments at Closing.
9.5.1 Expenses.  Seller shall pay (a) the fees of any counsel representing Seller in connection with this transaction, (b) one-half (1/2) of the escrow fee charged by Escrow Agent, (c) the recording charges for the deed and any other documents to clear title, (d) any documentary stamp or transfer taxes associated with the conveyance of the Property to Purchaser, and (e) any brokerage commission costs.  Purchaser shall pay (i) the fees of any counsel representing Purchaser in connection with this transaction, (ii) costs and expenses related to updating the Survey, (iii) the costs and expenses related to all of Purchaser’s due diligence studies and investigations, (iv) one-half (1/2) of the escrow fee charged by Escrow Agent, (v) all costs related to Purchaser’s financing of the Property (including, but not limited to, documentary stamp taxes and non-recurring intangible taxes in connection therewith), if applicable, (vi) all charges and costs for any title examinations, title commitments and title insurance, and (vii) all charges and costs for any costs of any title insurance endorsements that Purchaser elects to obtain.  Any other costs or expenses incident to this transaction and the closing thereof not expressly provided for above shall be allocated between and paid by the parties in accordance with custom and practice in Mecklenburg County, North Carolina.
9.5.2 Real Estate and Personal Property Taxes.  Real estate, personal property and ad valorem taxes for the year in which the Closing occurs will be prorated between Seller and Purchaser as of the Apportionment Time (as hereinafter defined) on the basis of actual bills therefor, if available.  If such bills are not available, then such taxes and other charges shall be prorated on the basis of the most currently available tax bills and, thereafter, promptly re-prorated upon the availability of actual bills for the applicable period.  Any and all rebates or reductions in taxes received subsequent to Closing for the calendar year in which Closing occurs, net of costs of obtaining the same (including without limitation reasonable attorneys’ fees) and net of any amounts due to tenants, shall be prorated as of the Apportionment Time, when received.  The current installment of all special assessments, if any, which are a lien against the Property at the time of Closing and which are being or may be paid in installments shall be prorated as of the Apportionment Time.  As used herein, the term “Apportionment Time” shall mean 11:59 p.m. Eastern time on the date immediately prior to the Closing Date.

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9.5.3 Lease Security Deposits.  At Closing, Seller shall pay to Purchaser, as a credit against the Purchase Price, an amount equal to all security deposits and other deposits held by Seller under the Leases (together with accrued interest thereon required by law or by the terms of the Leases), and thereafter Purchaser shall be solely obligated for the return of such security deposits and other deposits.
9.5.4 Rents.  All rents and other costs or charges paid by tenants under the Leases shall be prorated as of the Apportionment Time, to the extent actually collected by Seller.  With respect to any rent or charges that are delinquent prior to Closing, Seller shall have the right to pursue all rights and remedies against the tenants to recover such delinquencies; provided, however, that Seller shall not be entitled to dispossess such tenants.  Purchaser shall promptly remit to Seller any rent or payments for any charges received by Purchaser subsequent to Closing which are attributable to periods prior to Closing; provided, however, that such amounts received from tenants after Closing will first be applied to such charges as are then due and then applied in their reverse order of accrual until applied in full. From and after Closing and for a period of sixty (60) days thereafter, Purchaser shall use commercially reasonable efforts to collect from the tenants all rents that are delinquent for the period prior to Closing; provided that Purchaser shall not be required to retain a collection agency, terminate any lease, dispossess any tenant, or commence any other legal action or incur any out-of-pocket cost or expense in connection therewith.  
9.5.5 Utilities.  Water, sewer, electric, fuel (if any) and other utility charges, other than those for which tenants under Leases are responsible directly to the provider, shall be prorated as of the Apportionment Time.  If consumption of any of the foregoing is measured by meter, Seller shall, prior to the Closing Date, endeavor to obtain a reading of each such meter and a final bill as of the Closing Date.  If there is no such meter or if the bill for any of the foregoing shall have not been issued as of the Closing Date, the charges therefor shall be adjusted as of the Apportionment Time on the basis of the charges of the prior period for which such bills were issued and shall be further adjusted between the parties when the bills for the correct period are issued.  Seller and Purchaser shall cooperate to cause the transfer of utility accounts from Seller to Purchaser.  Seller shall be entitled to retain any utility security deposits to be refunded.  At Closing, Purchaser shall post substitute utility security deposits to replace those previously paid by Seller or, if the utility provider will not refund such deposits to Seller, Seller shall be reimbursed therefor by Purchaser at Closing.
9.5.6 Contracts.  All payments made or required under Contracts assumed by Purchaser shall be adjusted and apportioned as of the Apportionment Time.
9.5.7 Insurance Policies.  Premiums on insurance policies will not be adjusted.  As of the Closing Date, Seller will terminate its insurance coverage and Purchaser will obtain its own insurance coverage. 
9.5.8 Closing Statement.  Not later than two (2) Business Days prior to the Closing, Escrow Agent shall prepare, and promptly thereafter, Seller and Purchaser shall jointly agree upon, a closing statement (the “Closing Statement”) that will show the net amount due either to Seller or to Purchaser as the result of the adjustments and prorations provided for in this Agreement, and such net due amount shall be added to or subtracted from the cash balance of the Purchase Price to be paid to Seller at the Closing, as applicable.  Not later than the date that is one hundred eighty (180) days after the Closing Date, Seller and Purchaser shall reprorate the adjustments and prorations provided for herein respecting any items that were not capable of being determined as of the Closing Date or that previously were wrongfully determined and need to be corrected and the manner in which such items shall be determined and paid.  The net amount due Seller or Purchaser, if any, by reason of adjustments to the Closing Statement shall be paid in cash by the party obligated therefor within five (5) Business Days following the reproration by Seller and Purchaser.  The reproration agreed to by Seller and Purchaser not later than one hundred eighty (180) days after the 

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Closing Date shall be conclusive and binding on the parties hereto except for any items that are not capable of being determined at the time such reproration has been made by Seller and Purchaser and shall be conclusive and binding on the parties hereto except for any items that are not capable of being determined at that time of reproration, which items shall be determined and paid promptly as soon as they are capable of being determined.  Prior to and following the Closing Date, each party shall provide the other with such information as the other shall reasonably request (including, without limitation, access to the books, records, files, ledgers, information and data with respect to the Property during normal business hours upon reasonable advance notice) in order to make the preliminary and final adjustments and prorations provided for herein.
9.5.9 Survival.  The provisions of this Section 9.5 shall survive Closing.

ARTICLE 10  DAMAGE AND CONDEMNATION

10.1 Damage.  If, prior to the Closing, all or any portion of the Property is damaged by fire or any other cause whatsoever, Seller shall promptly give Purchaser written notice of such damage.  
10.1.1 Minor Damage.  If the cost for repairing such damage is less than One Million Dollars ($1,000,000.00) (as determined by Seller’s independent insurer), then Purchaser shall have the right at Closing to receive the amount of the deductible plus all insurance proceeds received by Seller as a result of such loss, or an assignment of Seller’s rights to such insurance proceeds, and this Agreement shall continue in full force and effect with no reduction in the Purchase Price, and Seller shall have no further liability or obligation to repair such damage or to replace the Property.
10.1.2 Major Damage.  If the cost for repairing such damage exceeds One Million Dollars ($1,000,000.00) (as determined by Seller’s independent insurer), then Purchaser shall have the option, exercisable by written notice delivered to Seller within five (5) Business Days (it being agreed that the Closing Date shall be extended if necessary to permit Purchaser to have the benefit of such five (5) Business Day period, time being strictly of the essence) after Seller’s notice of damage to Purchaser, either (i) to receive the amount of the deductible plus all insurance proceeds received by Seller as a result of such loss, or an assignment of Seller’s rights to such insurance proceeds, and this Agreement shall continue in full force and effect with no reduction in the Purchase Price, and Seller shall have no further liability or obligation to repair such damage or to replace the Property; or (ii) to terminate this Agreement.  If Purchaser elects to terminate this Agreement, Purchaser shall give notice to Seller thereof, the Deposit shall be returned to Purchaser, and thereafter neither party will have any further rights or obligations hereunder, except for any obligations that expressly survive termination.  If Purchaser fails to notify Seller within such five (5) Business Day period of Purchaser’s election to terminate this Agreement, then Purchaser shall be deemed to have elected option (i), and Purchaser and Seller shall proceed to Closing in accordance with the terms and conditions of this Agreement.  
10.2 Condemnation and Eminent Domain.  In the event that any condemnation proceedings are instituted, or notice of intent to condemn is given, with respect to all or any portion of the Property, Seller shall promptly notify Purchaser thereof in writing, in which event Purchaser shall either, at its sole election: (i) consummate the purchase of the Property without reduction of the Purchase Price, and the right to collect any condemnation award or compensation for such condemnation shall be assigned by Seller to Purchaser at Closing, or (ii) terminate this Agreement.  If Purchaser elects to terminate this Agreement, Purchaser shall give notice to Seller thereof, the Deposit shall be returned to Purchaser, and thereafter neither party will 

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have any further rights or obligations hereunder, except for any obligations that expressly survive termination.
ARTICLE 11   REMEDIES AND ADDITIONAL COVENANTS

11.1 Seller Default At or Before Closing.  If Seller is in breach or default of any of its obligations or agreements hereunder when performance is required on or prior to the Closing Date, or if any of the representations contained in Section 6.1 should be false in any material respect (subject to the provisions of Section 8.4) and Purchaser shall become actually aware of same on or prior to the Closing Date and Purchaser shall not have waived its claims with regard to same in writing pursuant to this Agreement, then Purchaser shall give Seller written notice of such breach or default on or prior to the Closing Date and Seller shall have ten (10) Business Days from the date of receipt of such notice to cure such breach or default and the Closing Date shall be extended accordingly.  If Seller fails to cure such breach or default within such ten (10) Business Day period, then Purchaser shall have the right, at its sole option and as its sole remedy, and Purchaser hereby waives its right to pursue any other remedy at law or in equity, and as Purchaser’s sole and exclusive remedy, Purchaser shall either (i) to terminate this Agreement by written notice to Seller and the Escrow Agent, in which event the Deposit shall be returned to Purchaser, whereupon neither party shall have any further rights, duties or obligations hereunder other than the obligations and rights set forth herein that expressly survive the termination of this Agreement, or (ii) to pursue specific performance of the obligations of Seller hereunder.  As a condition precedent to Purchaser’s exercising any right it may have to bring an action for specific performance hereunder, Purchaser must commence such action for specific performance within sixty (60) days after the scheduled Closing Date (the “Limitation Period”).  Purchaser agrees that its failure to timely commence such an action for specific performance within the Limitation Period shall be deemed a waiver by it of its right to commence an action for specific performance as well as a waiver by it of any right it may have to file or record a notice of lis pendens or notice of pendency of action or similar notice against the Property.  In no event shall Purchaser seek, or Seller be liable for, any damages to Purchaser, including, without limitation, punitive or consequential damages.  Notwithstanding any of the foregoing to the contrary, in the event of an Intentional Seller Default, Purchaser may recover from Seller Purchaser’s third-party out-of-pocket documented expenses actually incurred in connection with the transaction contemplated by this Agreement in an amount up to Fifty Thousand and No/100 Dollars ($50,000.00). As used herein, “Intentional Seller Default” means an intentional and deliberate affirmative act of Seller taken on or after the Effective Date that is intended to result in, and does result in, Purchaser’s inability to consummate the transaction contemplated in this Agreement for a reason other than Purchaser’s default or the failure of any condition to Closing to be satisfied.
11.2 Seller Default From and After Closing.  Subject to the limitations set forth in Section 6.4 of this Agreement, if Seller is in breach or default of any of its obligations or agreements hereunder that survive the Closing when performance is required, including, without limitation, any obligations or agreements under the documents delivered at Closing by Seller pursuant to Section 9.2.1 of this Agreement, or if any of the Express Representations should be false in any material respect and Purchaser shall first obtain actual (as opposed to constructive or imputed) knowledge, then Purchaser shall give Seller written notice of such breach or default of such obligation, agreement or representation hereunder prior to the expiration of the applicable survival period of such breach or default and Seller shall have thirty (30) days from the date of receipt of such notice to cure such breach or default.  If Seller fails to cure such breach or default within such thirty (30) day period, and the reasonably estimated losses or damages sustained as a result of Seller’s failure or inability to perform any of its obligations, agreements or Express Representations hereunder exceed Twenty-Five Thousand and 00/100 Dollars ($25,000.00) (the “Liability Threshold”), then Seller shall be liable for the actual direct damages suffered by Purchaser due to such uncured breach or default from the first dollar of loss.  Notwithstanding anything to the contrary contained 

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herein, (i) in no event shall Seller be liable to Purchaser for damages in an aggregate amount in excess of Five Hundred Twelve Thousand and 00/100 Dollars ($512,000.00) (the “Cap”), (ii) Seller’s inability to satisfy a condition of this Agreement shall not be considered a default by Seller hereunder unless such inability results from the breach of any of Seller’s representations set forth in Section 6.1 or the breach of Seller’s express covenants and obligations hereunder, and (iii) if Purchaser has knowledge of a default by Seller on the Closing Date and Purchaser elects to close the transaction contemplated herein, Purchaser shall be deemed to have irrevocably waived such default and Seller shall not have any liability with respect to such default; provided, however, that neither the Limitation Period, the Liability Threshold, nor the Cap, nor the requirement to commence any action within the period set forth in this Agreement, shall apply to any claim for fraud or intentional misrepresentation by Seller.    
11.3 Purchaser Default.  The parties acknowledge and agree that Seller should be entitled to compensation for any detriment suffered if Purchaser fails to consummate the purchase of the Property if and when required to do so under the terms of this Agreement, but agree that it would be extremely difficult to ascertain the extent of the actual detriment Seller would suffer as a result of such failure.  Consequently, if Purchaser fails to consummate the purchase of the Property on the Closing Date or fails to perform any of its other covenants in any material respect, or otherwise defaults in its obligations hereunder, then Seller shall be entitled to terminate this Agreement by giving written notice thereof to Purchaser prior to or at the Closing, in which event the Deposit shall be paid to Seller as fixed, agreed and liquidated damages, and, after the payment of the Deposit to Seller, neither Seller nor Purchaser will have any further rights or obligations under this Agreement, except for any obligations that expressly survive termination, except that Seller shall have the right to pursue an action against Purchaser for Seller’s actual damages suffered on account of a default by Purchaser under Sections 5.1.2, 6.2, 12.2, and 15.17 of this Agreement; provided, however, that nothing contained herein shall constitute a waiver by Seller of any damages, rights or remedies which may be available to Seller against Purchaser at law or in equity as a result of any material breach of a representation or warranty which Seller first obtains actual (as opposed to constructive or imputed) knowledge after Closing with respect to Purchaser’s indemnity obligations under Sections 5.1.5 and 12.2 of this Agreement (other than Purchaser’s failure to consummate the purchase of the Property on the Closing Date for which Seller shall be paid the Deposit in accordance with the immediately preceding sentence), all of which are hereby expressly reserved by Seller; provided, however, nothing contained herein shall entitle Seller to consequential or punitive damages or any other sums in excess of Seller’s actual damages. 
11.4 Delivery of Materials.  Notwithstanding anything contained in this Agreement to the contrary, if this Agreement is terminated for any reason whatsoever, then Purchaser shall promptly deliver to Seller or destroy all Property Information provided to Purchaser by Seller, including copies thereof in any form whatsoever, including electronic form, along with any and all tests results and studies of the Property performed by or on behalf of Purchaser pursuant to Article 5, excluding any confidential or proprietary information or financial modeling.  The obligations of Purchaser under this Section 11.4 shall survive any termination of this Agreement.
ARTICLE 12  BROKERAGE COMMISSION

12.1 Brokers.  Seller represents and warrants to Purchaser that Seller has not contacted or entered into any agreement with any real estate broker, agent, finder, or any party in connection with this transaction, except for Apartment Realty Advisors of the Carolinas, Inc d/b/a ARA, a Newmark Company (“Seller’s Broker”) and that Seller has not taken any action which would result in any real estate broker’s or finder’s fees or commissions being due and payable to any party other than Seller’s Broker with respect to the transaction contemplated hereby.  Seller will be solely responsible for the payment of Seller’s 

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Broker’s commission in accordance with the provisions of a separate agreement.  Purchaser hereby represents and warrants to Seller that Purchaser has not contracted or entered into any agreement with any real estate broker, agent, finder, or any party in connection with this transaction other than Seller’s Broker and that Purchaser has not taken any action which would result in any real estate broker’s or finder’s fees or commissions being due or payable to any party with respect to the transaction contemplated hereby.
12.2 Indemnity.  Each party hereby indemnifies and agrees to hold the other party harmless from and against any loss, liability, damage, cost, or expense (including, without limitation, reasonable attorneys’ fees) paid or incurred by the other party by reason of a breach of the representation and warranty made by such party under this Article 12.  Notwithstanding anything to the contrary contained in this Agreement, the indemnities set forth in this Section 12.2 shall survive the Closing or earlier termination of this Agreement.  
ARTICLE 13  NOTICES

13.1 Written Notice.  All notices, demands and requests which may be given or which are required to be given by either party to the other party under this Agreement must be in writing.
13.2 Method of Transmittal.  All notices, demands, requests or other communications required or permitted to be given hereunder must be sent (i) by United States certified mail, postage fully prepaid, return receipt requested, (ii) by hand delivery, (iii) by FedEx or a similar nationally recognized overnight courier service, or (iv) by email or facsimile, with a copy to follow by one of the methods prescribed in the foregoing clauses (i), (ii), or (iii).  All such notices, demands, requests or other communications shall be deemed to have been given for all purposes of this Agreement upon the date of receipt or refusal, or, in the case of email or facsimile, upon the date of receipt by the sender of electronic confirmation of successful transmission, except that whenever under this Agreement a notice is either received on a day which is not a Business Day or is required to be delivered on or before a specific day which is not a Business Day, the day of receipt or required delivery shall automatically be extended to the next Business Day.
13.3 Addresses.  The addresses for proper notice under this Agreement are as follows:

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	As to Seller:

With a copy to:
	c/o CNL Financial Group, Inc.
450 S. Orange Avenue
Orlando, Florida 32801
Attention:  Michael Tetrick, Senior Vice President
Phone:   (407) 540-2257
E-mail:  Mike.Tetrick@cnl.com 

c/o CNL Financial Group, Inc.
450 S. Orange Avenue
Orlando, Florida 32801
Attention:  Erin M. Gray, Esq., Senior Vice President, Legal and Assistant General Counsel
Phone:   (407) 540-2622
E-mail:  Erin.Gray@cnl.com

and:

Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
450 S. Orange Avenue, Suite 200 
Orlando, Florida 32801
Attn:  Joaquin E. Martinez, Esq. 
Phone:  (407) 843-4600
E-mail:  quino.martinez@lowndes-law.com

	 
	 

	As to Purchaser:
	Bel Whitehall LLC
Real Estate Investment Group
Two International Place
Boston, MA 02110

Attn:  Brian Shuell
Phone No.: (617) 672-8938 
Fax No.: (617) 672-1938   

and
   
Attn:  Jennifer J. Madden, Esq.
Phone No.: (617) 672-8010
Fax No.: (617) 672-1010   

	 
	 

	With a copy to:
	Wilmer Cutler Pickering Hale and Dorr LLP
60 State Street
Boston, MA 02109
Attn: Sean Boulger, Esq.
Phone No.: (617) 526-6870 
Fax No.: (617) 526-5000
Email:   sean.boulger@wilmerhale.com

	 
	 

	As to Escrow Agent:
	Commonwealth Land Title Insurance Company
265 Franklin Street, 8th Floor
Boston, MA 02110-3113
Attention: Robert J. Capozzi, Esq.
Email: Robert.capozzi@fnf.com

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Either party may from time to time by written notice to the other party designate a different address for notices.  Notices sent to or from an address outside of the continental United States shall be sent only by one of the methods specified in clauses (ii), (iii) or (iv) of this Section 13.3.  Anything contained in this Section 13.3 to the contrary notwithstanding, all notices may be executed and sent by the parties’ counsel.  For the avoidance of ambiguity, any notice given by email or facsimile shall be deemed given as of the date that the sender receives electronic confirmation of successful transmission of the notice (and not as of the date that a copy of such notice is given by one of the methods prescribed in clauses (i), (ii), or (iii) of this Section 13.3).

ARTICLE 14   ASSIGNMENT

Neither party shall have the right to assign this Agreement without the prior written consent of the other, which consent may be granted or withheld in the sole and absolute discretion of the party whose consent has been requested.  Seller hereby consents to an assignment at or prior to Closing by Purchaser of its interest in this Agreement to any entity controlling, controlled by, or under common control with Purchaser without further evidence of such entity’s financial capability to consummate Closing hereunder, provided that such assignee shall assume, in writing (by execution of an assignment and assumption agreement satisfactory to Seller), all of Purchaser’s obligations under this Agreement. 
ARTICLE 15   MISCELLANEOUS

15.1 Entire Agreement.  This Agreement embodies the entire agreement between the parties and cannot be varied except by the written agreement of the parties and supersedes all prior agreements and undertakings.
15.2 Modifications.  This Agreement may not be modified except by the written agreement of the parties.
15.3 Gender and Number.  Words of any gender used in this Agreement will be construed to include any other gender and words in the singular number will be construed to include the plural, and vice versa, unless the context requires otherwise.
15.4 Captions.  The captions used in connection with the Articles, Sections and Subsections of this Agreement are for convenience only and will not be deemed to expand or limit the meaning of the language of this Agreement.
15.5 Successors and Assigns.  This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors and permitted assigns.
15.6 Controlling Law.  This Agreement will be construed under, governed by and enforced in accordance with the laws of the State of North Carolina (without reference to conflicts of laws principles).
15.7 Exhibits.  All exhibits, attachments, schedules, annexed instruments and addenda referred to herein will be considered a part hereof for all purposes with the same force and effect as if set forth verbatim herein.
15.8 No Rule of Construction.  Seller and Purchaser have each been represented by counsel in the negotiations and preparation of this Agreement; therefore, this Agreement will be deemed to be drafted by both Seller and Purchaser, and no rule of construction will be invoked respecting the authorship of this Agreement.

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15.9 Severability.  In the event that any one or more of the provisions contained in this Agreement (except the provisions relating to Seller’s obligations to convey the Property and Purchaser’s obligation to pay the Purchase Price, the invalidity of either of which shall cause this Agreement to be null and void) are held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provisions hereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had not been contained herein, provided, however, that the parties hereto shall endeavor in good faith to rewrite the affected provision to make it (i) valid, and (ii) consistent with the intent of the original provision.
15.10 Time of Essence.  Time is important to both Seller and Purchaser in the performance of this Agreement, and both parties have agreed that TIME IS OF THE ESSENCE with respect to any date set out in this Agreement.
15.11 Business Days.  “Business Day” means any day on which business is generally transacted by banks in the State of North Carolina, the State of Florida, and the Commonwealth of Massachusetts.  If the Closing Date or the final date of any period which is set out in any paragraph of this Agreement falls upon a day which is not a Business Day, then, and in such event, the time of such period will be extended to the next Business Day.
15.12 No Memorandum.  Purchaser and Seller agree not to record this Agreement or any memorandum hereof. 
15.13 Press Releases.  Prior to Closing, any release to the public of information with respect to the sale contemplated herein or any matters set forth in this Agreement will be made only in the form approved by Purchaser and Seller except for any disclosure that may be required by law or applicable regulation to be made to any applicable governmental or quasi-governmental authorities or to the public, as described in Section 15.17.1 hereinbelow.  After the Closing has occurred, Seller and Purchaser shall each have the right to issue a press release regarding consummation of the transactions contemplated in this Agreement, subject to approval by the other party, which approval shall not be unreasonably withheld, conditioned or delayed.  Except with regard to required public disclosures described in this Section 15.13 and in Section 15.17.1 and/or to the extent that such information is a matter of public record, Seller shall not use the name of any direct or indirect equity or interest holder of Purchaser or divulge the Purchase Price in any press release or other release without Purchaser’s prior written consent, which consent may be withheld in Purchaser’s sole discretion.
15.14 Attorneys’ Fees and Costs.  In the event either party is required to resort to litigation to enforce its rights under this Agreement, the non-prevailing party in such litigation shall pay the costs, expenses and attorneys’ fees incurred by the prevailing party in connection with such action.
15.15 Counterparts and Expiration of Offer.  This Agreement may be executed in multiple counterparts which shall together constitute a single document.  However, this Agreement shall not be effective unless and until all counterpart signatures have been obtained.  An unsigned draft of this Agreement shall not be considered an offer by either party to purchase or sell the Property.  
15.16 Waiver of Jury Trial.  EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY EITHER PARTY IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE RELATIONSHIP OF SELLER AND PURCHASER HEREUNDER, PURCHASER’S OWNERSHIP OR USE OF THE PROPERTY, AND/OR ANY CLAIMS OF INJURY OR DAMAGE RELATED TO THE PROPERTY.

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15.17 Confidentiality
15.17.1 Except as provided otherwise in Section 15.13 and this Section 15.17, Purchaser and Seller, for the benefit of each other, hereby agree that neither of them will release or cause or permit to be released to the public any press notices, publicity (oral or written) or advertising promotion relating to, or otherwise publicly announce or disclose or cause or permit to be publicly announced or disclosed, in any manner whatsoever, the terms, conditions or substance of this Agreement or the transactions contemplated herein, without first obtaining the consent of the other party hereto, which may be granted or withheld in the sole discretion of the other party.  However, each party consents to any disclosure of this Agreement which the other party reasonably believes is required by law, by the public disclosure obligations required by the U.S. Securities Exchange Commission, or which is recommended in good faith by counsel to such other party or to the extent that such information is a matter of public record.
15.17.2 It is understood that the foregoing shall not preclude any party from discussing the substance or any relevant details of the transactions contemplated in this Agreement on a confidential basis with any of its members, managers, advisers, partners, agents, employees, engineers, licensees, investors, attorneys, accountants, professional consultants, financial advisors, rating agencies, or potential lenders, as the case may be, or prevent any party hereto from complying with applicable laws, including, without limitation, governmental regulatory, disclosure, tax and reporting requirements.  Notwithstanding the foregoing, Purchaser shall have the right to deliver such information to Purchaser’s potential investors and potential lenders, in each case on a need-to-know basis after the recipients have been informed of the confidential nature of such information and directed not to disclose such information except in accordance with this Section 15.17.  The aforementioned shall not preclude the disclosure to potential investors or lenders of the proposed purchase price, the net operating income of the Property and the approximate rate of return on the investment.
15.17.3 In addition to any other remedies available to Seller and Purchaser, Seller and Purchaser shall each have the right to seek equitable relief, including, without limitation, injunctive relief or specific performance, against the other party or its representatives in order to enforce the provisions of this Section 15.17.
15.17.4 Notwithstanding any other provision of this Agreement, the provisions of Section 15.17 shall survive the termination of this Agreement for one (1) year following the Effective Date, but shall not survive Closing.
15.18 Jurisdiction and Service of Process.  The parties hereto agree to submit to personal jurisdiction in the State of North Carolina in any action or proceeding arising out of this Agreement and, in furtherance of such agreement, the parties hereby agree and consent that without limiting other methods of obtaining jurisdiction, personal jurisdiction over the parties in any such action or proceeding may be obtained within or without the jurisdiction of any court located in the State of North Carolina and that any process or notice of motion or other application to any such court in connection with any such action or proceeding may be served upon the parties by certified mail to or by personal service at the last known address of the parties, whether such address be within or without the jurisdiction of any such court.  Purchaser hereby irrevocably designates its counsel, Sean Boulger, as its agent for service of process in connection with any matter relating to this Agreement.  The provisions of this Section 15.18 shall survive the Closing or the termination hereof.
15.19 Exculpation.  

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15.19.1 Purchaser agrees that it does not have and will not have any claims or causes of action against the Seller Knowledge Individual or any disclosed or undisclosed officer, director, employee, trustee, shareholder, member, manager, partner, principal, parent, subsidiary or other affiliate of Seller, or any officer, director, employee, trustee, shareholder, partner or principal of any such parent, subsidiary or other affiliate (collectively, “Seller's Affiliates”), arising out of or in connection with this Agreement or the transactions contemplated hereby.  Purchaser agrees to look solely to Seller and its assets for the satisfaction of any liability or obligation arising under this Agreement or the transactions contemplated hereby, or for the performance of any of the covenants, warranties or other agreements contained herein, and further agrees not to sue or otherwise seek to enforce any personal obligation against any of Seller's Affiliates with respect to any matters arising out of or in connection with this Agreement or the transactions contemplated hereby.  Without limiting the generality of the foregoing provisions of this Section 15.19, Purchaser hereby unconditionally and irrevocably waives any and all claims and causes of action of any nature whatsoever it may now or hereafter have against Seller's Affiliates, and hereby unconditionally and irrevocably releases and discharges  Seller’s Affiliates from any and all liability whatsoever which may now or hereafter accrue in favor of Purchaser against Seller’s Affiliates, in connection with or arising out of this Agreement or the transactions contemplated hereby.  The provisions of this Section 15.19 shall survive the termination of this Agreement and the Closing.  
15.19.2 All claims, demands, liabilities, or causes of action whether in contract or in tort, in law or in equity, or granted by statute that may be asserted by Seller or any Seller Affiliate arising from, related to or in connection with this Agreement, or the negotiation, execution, or performance of this Agreement, may be made only against Purchaser. No affiliate of Purchaser or any disclosed or undisclosed officer, director, employee, trustee, shareholder, member, manager, partner, principal, parent, subsidiary or other affiliate of Seller, or any officer, director, employee, trustee, shareholder, partner or principal of any such parent, subsidiary or other affiliate (collectively, “Purchaser’s Affiliates”) shall have any direct or indirect personal liability arising from, related to or in connection with this Agreement or the negotiation, execution, or performance thereof, and to the maximum extent permitted by law, Seller hereby waives any and all such personal liability against any and all of Purchaser’s Affiliates arising from, related to, or in connection with this Agreement or the negotiation, execution, or performance thereof. The limitations on liability contained in this Section 15.19.2 are in addition to, and not in limitation of, any limitation on liability applicable to Purchaser provided in any other provision of this Agreement or by law or by any other contract, agreement or instrument. 
15.19.3 All claims, demands, liabilities, or causes of action whether in contract or in tort, in law or in equity, or granted by statute that may be asserted by Purchaser or any Purchaser Affiliate arising from, related to or in connection with this Agreement, or the negotiation, execution, or performance of this Agreement, may be made only against Seller. No Seller’s Affiliate or any disclosed or undisclosed officer, director, employee, trustee, shareholder, member, manager, partner, principal, parent, subsidiary or other affiliate of Purchaser, or any officer, director, employee, trustee, shareholder, partner or principal of any such parent, subsidiary or other affiliate shall have any direct or indirect personal liability arising from, related to or in connection with this Agreement or the negotiation, execution, or performance thereof, and to the maximum extent permitted by law, Purchaser hereby waives any and all such personal liability against any and all of Seller’s Affiliates. The limitations on liability contained in this Section 15.19.3 are in addition to, and not in limitation of, any limitation on liability applicable to Seller provided in any other provision of this Agreement or by law or by any other contract, agreement or instrument.

[Signature Page Follows]

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

GGT WHITEHALL VENTURE NC, LLC, 
a Delaware limited liability company

By:    /s/ Tammy Tipton 
Name:    Tammy Tipton
Title:    Executive Vice President

Date:     June 30, 2016

PURCHASER:

BEL WHITEHALL LLC, 
a Delaware limited liability company

By:    /s/ Gary LeFave
Name:    Gary LeFave
Title:    Authorized Signatory 

Date:     June 30, 2016

[Signature page to Purchase and Sale Agreement]
0914762\171900\2766911v1

EXHIBIT A

LEGAL DESCRIPTION

Intentionally Omitted

        

EXHIBIT B

ESCROW AGREEMENT

Intentionally Omitted

EXHIBIT C

FORM OF SPECIAL WARRANTY DEED

Intentionally Omitted 

EXHIBIT A TO SPECIAL WARRANTY DEED

Intentionally Omitted

EXHIBIT B TO SPECIAL WARRANTY DEED
PERMITTED EXCEPTIONS

Intentionally Omitted

EXHIBIT C TO SPECIAL WARRANTY DEED
RESTRICTIONS AGAINST CONDOMINIUM CONVERSION

Intentionally Omitted
.

EXHIBIT D

FORM OF BILL OF SALE

Intentionally Omitted

1

        

EXHIBIT A

Real Property Description

Intentionally Omitted

        

EXHIBIT E

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

Intentionally Omitted

        

EXHIBIT A
Real Property Description

Intentionally Omitted

        

EXHIBIT B
Leases, Licenses and Security Deposits

Intentionally Omitted

        

EXHIBIT C
Contracts
Intentionally Omitted

        

EXHIBIT F

FORM OF TENANT NOTIFICATION LETTER

Intentionally Omitted

        

SCHEDULE 1.4

RENT ROLL

Intentionally Omitted

SCHEDULE 1.5

LICENSES

Intentionally Omitted

SCHEDULE 1.8

CONTRACTS

Intentionally Omitted

        

SCHEDULE 4.1

PROPERTY INFORMATION

Intentionally Omitted

        

SCHEDULE 6.1.3

LITIGATION

NONE

        

SCHEDULE 6.1.8

VIOLATIONS OF LAW

NONE
.

SCHEDULE 6.1.15
LIST OF PERSONAL PROPERTY

Intentionally Omitted

SCHEDULE 6.1.18
ENVIRONMENTAL REPORTS

Intentionally Omitted

        

SCHEDULE 7.5

SURETY AND/OR MAINTENANCE BONDS

NONE

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