Document:

SEC Exhibit

EXHIBIT 10.2

FIRST AMENDMENT TO 
PURCHASE AND SALE AGREEMENT
THIS FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT (this “Amendment”) is made as of May 11, 2016 (the “Amendment Effective Date”), by and between ASHFORD PROPERTIES, LLC, Series D-Gurnee Partners at Carriage House, an Illinois limited liability company (“Seller”), and STEADFAST ASSET HOLDINGS, INC., a California corporation (“Buyer”).
Recitals
A.    Seller and Buyer entered into that certain Purchase and Sale Agreement with an Effective Date of April 6, 2016 (the “Agreement”) for the purchase and sale of the Property (as defined in the Agreement) in Gurnee, Lake County, Illinois.
B.    Seller and Buyer desire to amend the Agreement as set forth in this Amendment.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend the Agreement as follows:
1.The recitals set forth hereinabove are hereby incorporated herein by this reference with the same force and effect as if fully hereinafter set forth.
2.Capitalized terms used in this Amendment not otherwise defined shall have the meaning given to such terms in the Agreement.
3.Section 3.5 is hereby added to the Agreement as follows:
At Closing, Buyer shall receive a credit against the Purchase Price for capital improvements in an amount equal to Seventy-Five Thousand and 00/100 Dollars ($75,000.00).
4.Section 5.1 of the Agreement is hereby amended by deleting the definition of  “Outside Closing Date” and inserting the following in lieu thereof:
“Outside Closing Date” shall mean a date selected by Buyer, but in no event earlier than May 19, 2016 or later than May 31, 2016.
5.Section 6.4 of the Agreement is hereby amended by deleting the definition of  “Due Diligence Period” and inserting the following in lieu thereof:
“Due Diligence Period” shall mean the period commencing after the Opening of Escrow through May 13, 2016.

6.Section 8.4 is hereby added to the Agreement as follows: 
Section 8.4  Indemnity re Altiera Claim.  Notwithstanding but without limiting the provisions of Section 8.1.5 of the Agreement, Seller shall indemnify Buyer and defend Buyer against and hold Buyer harmless from all claims, demands, liabilities, losses, damages, costs and expenses, including reasonably attorneys’ fees and disbursements (“Buyer’s Damages”), that may be suffered or incurred by Buyer arising out of, or in connection with, any claim, amended claim, potential claim, litigation, other adversarial proceeding, settlement, judgment or order relating to or arising out of the incident, facts or events that are the subject of that certain complaint, a copy of which is attached hereto as Exhibit “A” (“Altiera Litigation”).  Notwithstanding but without limiting the provisions of Section 8.1.7 of the Agreement, Seller shall not dissolve as a limited liability company formed in the State of Illinois and shall remain existing and in good standing under the laws of the State of Illinois until the Altiera Litigation has been dismissed, settled or finally determined with reasonable certainty and all claims, liabilities and judgments arising out of such dismissal, settlement or other determination have been paid in full.  Seller agrees that (a) the time period limitation under Section 8.1.7 of the Agreement  (i.e., nine (9) months after the Closing Date) (“Limitation Period”), and (b) any failure by Buyer to give Seller notice of any demand for indemnification regarding the Altiera Litigation pursuant to Section 8.1.7 before expiration of the Limitation Period, shall not, under any circumstances, be construed to limit, in any manner, Seller’s obligations or representations and warranties under or contained in this paragraph.  For clarity, the monetary limitation set forth in Section 8.1.7 of the Agreement shall not apply to Buyer’s Damages in connection with the Altiera Litigation. Buyer shall reasonably cooperate with Seller’s efforts in connection with the Altiera Litigation, including allowing access to the Real Property for the purpose of conducting physical inspections reasonably necessary to Seller’s defense, provided that (a) Seller must give Buyer two (2) full Business Days’ prior telephone or written notice of any such physical inspection, (b) prior to performing any physical inspection, Seller must deliver evidence of liability insurance with coverage in an amount not less than $1,000,000.00 combined single limit, for personal injury, including bodily injury and death, and property damage, naming Buyer and Buyer’s property manager (if requested by Buyer) as additional insured parties, (c) Seller agrees to indemnify and hold Buyer harmless and defend Buyer from and against any claims, liabilities, liens, cause of action, expenses, costs, or damages (including reasonable attorneys’ fees and personal injury claims) resulting from entry onto the Real Property by Seller or Seller’s consultants, contractors, employees, representatives, or agents, and (d) Buyer shall incur no cost or expense in connection therewith.
7.This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors and permitted assigns.

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8.The Agreement, as amended by this Amendment, constitutes the entire agreement and understanding of the parties hereto with respect to the purchase and sale of the Property, and shall not be modified or amended except by written agreement duly executed by Seller and Buyer. 
9.This Amendment may be executed in any number of counterparts, any one of which shall be an original, but all of which together shall be one and the same instrument.  Signatures transmitted electronically by facsimile, email or PDF file shall be deemed to be original signatures for purposes of this Amendment.
10.In the event of any conflict between this Amendment and the Agreement with regard to the subject matter hereof, this Amendment shall control.  Seller and Buyer do hereby reaffirm and ratify all non-conflicting portions of the Agreement.
11.This Amendment shall be construed in accordance with and governed by the laws of the State in which the Property is located.  
[Signatures appear on following page] 

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

	
			
	SELLER:

	 
	 
	 

	ASHFORD PROPERTIES LLC,

	Series D-Gurnee Partners at Carriage House,

	an Illinois limited liability company

	 
	 
	 

	By:
	 
	/s/ Stephen E. McPartlin

	Name:
	 
	Stephen E. McPartlin

	Title:
	 
	Manager

	 
	 
	 

	 
	 
	 

	By:
	 
	/s/ S. Scott McPartlin

	Name:
	 
	Stephen E. McPartlin

	Title:
	 
	Manager

            
 	
			
	BUYER:

	 
	 
	 

	STEADFAST ASSET HOLDINGS, INC.,

	a California corporation

	 
	 
	 

	By:
	 
	/s/ Ana Marie del Rio

	Name:
	 
	Ana Marie del Rio

	Title:
	 
	Vice President

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EXHIBIT A

Copy of Altiera Complaint

(See Attached.)

	
			
	 
	EXHIBIT ASEC Exhibit

EXHIBIT 10.3

ASSIGNMENT AND ASSUMPTION OF PURCHASE AGREEMENT

For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, STEADFAST ASSET HOLDINGS, INC., a California corporation (“Assignor”), hereby assigns to STAR III CARRIAGE HOUSE, LLC, a Delaware limited liability company (“Assignee”), all of Assignor’s rights and obligations under and in regard to that certain Purchase and Sale Agreement and Joint Escrow Instructions dated April 6, 2016 (as may have been amended or may hereafter be amended, the “Purchase Agreement”), between ASHFORD PROPERTIES, LLC, Series D-Gurnee Partners at Carriage House, an Illinois limited liability company (“Seller”) and Assignor for the purchase and sale of that certain real property located in Gurnee, Illinois as more particularly described in Exhibit A attached hereto (the “Property”).

Assignee hereby agrees to and shall assume, perform and be fully responsible for the performance of all of the obligations of Assignor under the Purchase Agreement.

All of the provisions, covenants and agreements contained in the Assignment shall extend to and be binding upon the respective legal representatives, successors and assigns of Assignor and Assignee.  This Assignment represents the entire agreement between Assignor and Assignee with respect to the subject matter of the Assignment, and all prior or contemporaneous agreements regarding such matters are hereby rendered null and void and of no force and effect. 

(SIGNATURES APPEAR ON FOLLOWING PAGE)

WITNESS THE EXECUTION HEREOF, as of this May 18, 2016.

	
			
	ASSIGNOR:
	 
	 

	 
	 
	 

	STEADFAST ASSET HOLDINGS, INC.,

	a California corporation

	 
	 
	 

	By:  /s/ Ana Marie del Rio_____________

	        Ana Marie del Rio, Vice President

	 
	 
	 

	 
	 
	 

	 
	 
	 

 
 

	
			
	ASSIGNEE:

	 
	 
	 

	STAR III CARRIAGE HOUSE, LLC

	a Delaware limited liability company

	 
	 
	 

	By:
	Steadfast Apartment Advisor III, LLC

	 
	a Delaware limited liability company,

	 
	its Manager
	 

	 
	 
	 

	 
	 By: /s/ Ana Marie del Rio________

	 
	         Ana Marie del Rio, Secretary

	
			
	Assignment of PSA-Carriage House
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Exhibit A

DESCRIPTION OF THE LAND

PARCEL 1:

LOTS 1 THROUGH 4 IN BLOCK 2 IN BIG OAKS, BEING A SUBDIVISION OF PART OF THE NORTHEAST 1/4 OF SECTION 23, TOWNSHIP 45 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED JUNE 4, 1968 AS DOCUMENT 1380376, IN BOOK 45 OF PLATS, PAGE 55, TOGETHER WITH A TRACT OF LAND LYING EAST OF AND ADJOINING LOT 1 AFORESAID, AS SHOWN ON AND LOCATED BY THE AFORESAID PLAT OF SUBDIVISION, IN LAKE COUNTY, ILLINOIS.

PARCEL 2:

LOT 1 (EXCEPT THE WEST 17 FEET THEREOF) AND ALL OF LOTS 2 THROUGH 4 IN BIG OAKS UNIT 3, BEING A SUBDIVISION OF PART OF THE WEST 1/2 OF THE NORTHEAST 1/4 OF SECTION 23, TOWNSHIP 45 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED JULY 30, 1969 AS DOCUMENT 1430576, IN BOOK 49 OF PLATS, PAGE 3, IN LAKE COUNTY, ILLINOIS.

PARCEL 3:

LOTS 1 THROUGH 4 IN BIG OAKS UNIT 4, BEING A SUBDIVISION OF PART OF THE WEST 1/2 OF THE NORTHEAST 1/4 OF SECTION 23, TOWNSHIP 45 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED JANUARY 30, 1970 AS DOCUMENT 1449663, IN BOOK 49 OF PLATS, PAGE 17, IN LAKE COUNTY, ILLINOIS.

PARCEL 4:

LOTS 1 THROUGH 5 IN THE RESUBDIVISION OF LOT "A" IN BIG OAKS UNIT 4, BEING A RESUBDIVISION OF THE WEST 1/2 OF THE NORTHEAST 1/4 OF SECTION 23, TOWNSHIP 45 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF SAID RESUBDIVISION RECORDED JANUARY 19, 1971 AS DOCUMENT 1488058, IN BOOK 49 OF PLATS, PAGE 46, IN LAKE COUNTY, ILLINOIS.

	
			
	Assignment of PSA-Carriage House
	3

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