Document:

Exhibit

EXHIBIT 10.5

CONSTRUCTION MANAGEMENT SERVICES AGREEMENT
THIS CONSTRUCTION MANAGEMENT SERVICES AGREEMENT (this “Agreement”) is entered into as of August 26, 2015 by and between STAR DELANO, LLC, a Delaware limited liability company (the “Company”), and PACIFIC COAST LAND & CONSTRUCTION, INC., a California corporation (the “Construction Manager”).  
RECITALS
A.    The Company, directly or through a wholly-owned subsidiary, owns that certain 263-unit multifamily housing development located in North Richland Hills, Texas and commonly known as The Delano at North Richland Hills (the “Project”), which Project is scheduled to undertake certain capital improvements projects (the “Improvements”) and/or certain revitalization projects (the “Revitalization”) from time to time.
B.    The Construction Manager is experienced and staffed to oversee and manage completion of the Improvements and Revitalization.   
C.    The Company desires to engage the Construction Manager to provide certain services for the Company with respect to the Improvements and Revitalization, including but not limited to compliance with the Agreement(s) for Contractor Services executed in connection with the Improvements and Revitalization, a form of which is attached hereto as Exhibit A, and will be entered into with each contractor (the “Contractor Agreements”).  
NOW, THEREFORE, in consideration of the foregoing, of the mutual promises of the parties hereto, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
AGREEMENT
1.Appointment.  The Company hereby appoints the Construction Manager to render services in connection with the Improvements and Revitalization as contemplated herein and in the Contractor Agreements, and confirms and ratifies the appointment of the Construction Manager with respect to such services rendered for the Company to date, if any.
2.    Authority.  The Construction Manager shall have the authority and the obligation to:
(a)    monitor the Scope of Work (as described in the applicable Contractor Agreement) and timely completion of each Improvement and Revitalization project, as such Improvement and Revitalization project is to be completed pursuant to the applicable Contractor Agreement;
(b)    make recommendations with respect to the Improvements and Revitalization and their repair or construction; 

(c)    assist the Company in making determinations and taking action under the Contractor Agreements; 
(d)    coordinate accurate and timely draw requests for lender, if any, and release of all applicable contractor lien rights for work completed; and
(e)    maintain complete and accurate records relating to the Improvements and Revitalization, the Contractor Agreements and the services provided under this Agreement.
3.    Fees.  For services that are to be, or have been, performed under this Agreement, the Company agrees to pay the Construction Manager a fee (the “Construction Management Fee”), in an amount equal to Eight Percent (8%) of the total costs of the Improvements and Revitalization, which Construction Management Fee shall be payable from time to time as and when the Company makes payments under the Contractors Agreement.  
4.    Insurance; Indemnification.  During the term of this Agreement, Construction Manager shall procure and maintain, at its sole cost and expense, at least the following types and amounts of insurance coverage: (a) Commercial General Liability with limits no less than $1 Million per occurrence and $2 Million in the aggregate; (b) Commercial Automobile Liability with limits no less than $1 Million, combined single limit, (c) Worker's Compensation insurance with limits no less than the minimum amount required by applicable law; and (d) Errors and Omissions/Professional Liability with limits no less than $1 Million per occurrence.  All required insurance policies shall be issued by insurance companies with a Best's Rating of no less than A-VII and provide that such insurance carriers give the Company at least 30 days' prior written notice of cancellation or non-renewal of policy coverage.  The policies are to name the Company or its applicable subsidiary as additional insureds and will waive any right of subrogation of the insurers against the Company or any of its affiliates.
The Company shall defend, indemnify and hold harmless the Construction Manager and its officers, directors, employees, agents, successors and permitted assigns (each, an “Indemnitee") from and against all claims, costs, losses and damages,  arising out of or resulting from any third party claim, suit, action or proceeding relating to the Project or the Improvements and Revitalization.  Construction Manager shall defend, indemnify and hold harmless the Company and its Indemnitees from and against all losses arising out of or resulting solely from the willful, fraudulent or grossly negligent acts or omissions of Construction Manager.
5.    Termination.  This Agreement may be terminated by either party with 30-days prior written notice to the other party.  

    

6.    Assignment; Successors and Assigns.  No party shall assign its rights or delegate its obligations without the consent of the other party, which consent may be withheld in such other parties’ sole and absolute discretion; provided, however, that no consent is required for an assignment to an affiliate of such party.  In the event of an assignment permitted hereunder, this Agreement shall be binding on the parties hereto and their successors and assigns.
7.    Arbitration.  All claims and disputes arising under or relating to this Agreement are to be settled by binding arbitration in the state of California or another location mutually agreeable to the parties. The arbitration shall be conducted on a confidential basis pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys' fees.  Any such arbitration shall be conducted by an arbitrator experienced in construction matters and mutually agreed upon by the parties.  The arbitrator shall include a written record of the arbitration hearing.    The ruling of such arbitrator shall be binding upon the parties hereto and shall be final and non-appealable.  An award of arbitration may be confirmed in a court of competent jurisdiction.   
8.    Separability of Provisions.  Each provision of this Agreement shall be considered separable and if for any reason any provision that is not essential to the effectuation of the basic purposes of this Agreement is determined to be invalid and contrary to any existing or future law, such invalidity shall not impair the operation of or affect those provisions of this Agreement which are valid.
9.    Facsimile Signatures; Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original copy and all of which together shall constitute one agreement binding on all parties hereto, notwithstanding that all the parties shall not have signed the same counterpart.  Any party may effect the execution and delivery of this Agreement by signing the same and sending a copy thereof to the other party or its attorney by facsimile or electronic transmission. Such facsimile document, including the signatures thereon, shall be treated in all respects as an original instrument bearing an original signature.
10.    No Continuing Waiver.  The waiver of any party of any breach of this Agreement shall not operate or be construed to be a waiver of any subsequent breach.
11.    Applicable Law.  This Agreement shall be construed and enforced under the laws of the state in which the Project is located.

[Remainder of page intentionally left blank.]

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IN WITNESS WHEREOF, the parties have caused this Construction Management Services Agreement to be duly executed as of the date as first written above.
COMPANY:

STAR DELANO, LLC, a Delaware limited liability company

	
				
	By:
	 
	STEADFAST APARTMENT ADVISOR, LLC,

	 
	 
	its Manager

	 
	 
	 
	 

	 
	 
	By:
	/s/ Ana Marie del Rio

	 
	 
	Name:
	Ana Marie del Rio

	 
	 
	Its:
	Secretary

CONSTRUCTION MANAGER:

PACIFIC COAST LAND & CONSTRUCTION, INC., 
a California corporation

	
			
	By:
	/s/ Dinesh Davar

	Name:
	Dinesh Davar

	Its:
	Chief Financial Officer

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AGREEMENT FOR CONTRACTOR SERVICES
This Agreement for Contractor Services (this "Agreement") is made as of ___________, 20__, between ______________________________, a _________________ ("Owner"), and __________________________________________, a __________________________ ("Contractor").  For purposes of this Agreement, Owner shall mean Owner or its agent, Pacific Coast Land & Construction, Inc., a California corporation ("Construction Manager"), as directed by Owner.

		
	1.
	Job Site:       _____________________ Apartments, located at _____________________________, City of ________, State of _________________ (the "Job Site").

		
	2.
	Scope of the Work:  Contractor agrees to furnish all supervision, labor, materials, equipment, supplies, services, machinery, tools and all other elements necessary for the proper, complete, expeditious and efficient performance of the work described below which shall be hereinafter referred to as (the “Work”):

(a)    Attached Proposal / Work Scope from Contractor.  □  Attached, or
(b)    Other (please describe):  __________________________________________________________________________________________________

		
	3.
	Contract Plans and Specifications:  The addenda, drawings, plans, general and supplementary conditions and specifications attached to this Agreement, together with __________________ (collectively, the "Plans and Specifications"), constitute the approved Plans and Specifications for the Work.  Contractor and its subcontractors will be and are bound by any and all of said Plans and Specifications insofar as they relate in any part or in any way to the work covered by this Agreement.  In the event of any conflict between the provisions of Plans and Specifications and the Contractor’s proposal, the Plans and Specifications shall govern.

		
	4.
	Commencement and Completion:  The Work shall commence on _______________, 20__ and shall be complete in accordance with this Agreement without delay on ______________, 20__.  The term “day”, used throughout this Agreement, refers to calendar days.   Contractor shall not be entitled to any additional compensation for any Permitted Delays.  If this Agreement is not signed and returned to the Owner before any work commences, this Agreement will be considered as accepted as presented to the Contractor.

		
	5.
	Payment:

(a)Contract Price:  The Owner agrees to pay the Contractor for the full and faithful performance of the Work, including all applicable taxes, and the Contractor agrees to accept such payment as full and just compensation therefor.  The Work is to be done on a time and material basis as it is set forth in the “Scope of Work” referenced in Section 2 above, and the total estimated cost for the Work is ___________________________________________ DOLLARS AND __/100 ($________.__) (the “Contract Price”) in current funds subject to additions and deductions for changes and/or charges as may be agreed upon in writing pursuant to this Agreement.

(b)Progress Payments:  All applications for payment ("Invoices"), in form acceptable to Owner, shall include a complete description of the labor and materials supplied, and the work done during the period covered by the Invoice (the "Invoice Period").  All Invoices shall be accompanied by (i) a list of all suppliers and subcontractors whose materials or services have been utilized by Contractor to perform the work described in the Invoice, and (ii) signed waivers of and releases from any claim of lien, or stop notice that could be asserted by such suppliers, subcontractors and Contractor as a result of the work performed during the Invoice Period.  Each Invoice will be accompanied by certified statements from each supplier and subcontractor (1) indicating the total amount due them as a result of the work performed during the Invoice Period, (2) acknowledging that Contractor may or may not (in the Owner’s sole discretion) be paid by means of a joint check prepared based upon such certified statements, and (3) agreeing that such supplier's or subcontractor's negotiation of any such check shall be its representation that it has been timely and fully paid for work performed through the end of the Invoice Period.  Such certified statements shall be in the form prescribed by the laws of the state in which the Job Site is located, or if no such prescribed form exists, in substantially the form attached hereto as Exhibit A.  Contractor agrees to furnish, if and when required by Owner, payroll affidavits, receipts, vouchers, releases of claims for labor, material and subcontractors performing work or furnishing material under this Agreement, all in form satisfactory to Owner.  Subject to the payment provisions of this Agreement, ninety percent (90%) of the amount set forth in the Invoices shall be paid in any calendar month upon payment of the progress payment for such month to Contractor.  Invoices shall not be submitted more frequently than monthly, and shall include all charges made since the preceding Invoice Period.

(i)    Final Payment.  Contractor shall not be paid the remaining ten percent (10%) of the Contract Price until the Work has been completed in accordance with the Plans and Specifications, including but not limited to, (1) receipt of properly executed warranties; (2) attic stock materials designated in the  Plans and Specifications; (3) spare parts designated in the Plans and Specifications; (4) final lien releases from all suppliers, subcontractors and Contractor in the form prescribed by the laws of the state in which the Job Site is located, or if no such prescribed form exists, in substantially the form attached hereto as Exhibit B; (5) reasons listed in “Withholding Payment” have been removed; in each case to Owner’s satisfaction and (a) either (i) thirty (30) days have elapsed after a Notice of Completion for the Work has been recorded, or (ii) if a Notice of Completion for the Work is not recorded, Contractor receives a written notice of acceptance of the Work from Owner within thirty (30) days after Owner determines in good faith that the Work has been fully and acceptably performed, and (b) within ten (10) days after Lender has released retainage funds, which will not occur prior to 50% completion for the entire project, however, holding retainage could extend to final completion of the project.

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(ii)    Designated Representatives.  Owner and Contractor shall each designate a field representative, as such representative may be changed from time to time by written notice to the other party.  All notices, writings or other communications concerning this Agreement or the Work shall be made through each party's designated field representative, which for purposes of this Agreement shall be the respective Designated Representatives set forth below.  All addenda, change orders, or modifications to this Agreement must be signed by an authorized Designated Representative. 

		
	1.
	General Conditions:  This Agreement includes the General Conditions attached hereto and made a part hereof.

		
	2.
	Supplementary Conditions:  This Agreement also includes the Supplementary Conditions, if any, attached hereto as Appendix 1 and made a part hereof.  In the event of any conflict between the provisions of Appendix 1 and any other provision of this Agreement, the provisions of Appendix 1 shall control.  All Supplementary Conditions must be initialed by both Owner and Contractor in order to be binding upon the parties. 

NOTICE:  STATE REQUIRED NOTICES AND/OR DISCLOSURES, IF ANY, ARE ATTACHED HERETO AS APPENDIX 2.
	
		
	

OWNER:

_____________________________, a ________________________

By:  Pacific Coast Land & Construction, Inc.,
        a California corporation,
   authorized agent of Owner

     By:__________________________________________________
     Name:  ______________________________________________
     Title:  ________________________________________________

Dated: _________________________________________________

Address:  18100 Von Karman Avenue, Suite 500
                 Irvine, CA 92612

Designated Representative:

_____________________________________________
	

CONTRACTOR:

____________________________________, a _______________

By:__________________________________________________

Its:__________________________________________________

Dated:_______________________________________________

Address: _____________________________________________
           
License No.:__________________________________________
Federal Tax I.D. or F.I.C.A. No.:_______________________

Designated Representative:

_____________________________________________

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GENERAL CONDITIONS

1.    The Work.
(a)    Plans and Specifications; Laws.  The Work shall be performed in strict accordance with: (i) the Plans and Specifications; and (ii) all applicable federal, state and local codes, laws, permits, orders, ordinances and any rules and regulations promulgated there under, (collectively "Laws").
(b)    Shop Drawings.  Contractor shall submit such shop drawings, product data, samples and similar submittals (collectively, "Shop Drawings") to Owner as are required to accomplish the Work with reasonable promptness and in such sequence so as to cause no delay in the Work or in the activities of Owner or other contractors.  Owner shall review and approve all Shop Drawings with reasonable promptness.  Such review shall be for the sole purpose of verifying that the Shop Drawings comply with the requirements of the Plans and Specifications and are otherwise satisfactory to Owner.  Owner’s review and approval of the Shop Drawings is not an endorsement or approval of the safety or design of the Shop Drawings or their compliance with the Laws (Contractor is solely liable for such matters).  For purposes of this Agreement, Shop Drawings are drawings, diagrams, schedules and other information specially prepared for the Work.  Product data are illustrations, standard schedules, performance charts, instructions, brochures, diagrams and other information furnished by Contractor to illustrate materials or equipment used in connection with the Work.  Samples are examples of illustrative material or workmanship and establish standards by which the Work will be evaluated.
(c)    List of Suppliers and Subcontractors.  Concurrently with signing this Agreement, Contractor shall submit a signed statement under penalty of perjury to Owner in the form of Exhibit C attached hereto ("Supplier Statement") showing the names and addresses of all persons from whom Contractor expects to request or has requested services, materials, fixtures, or machinery and equipment for the Work.  Owner may object to any person or entity identified in the Supplier Statement by written notice to Contractor within five (5) calendar days after Owner receives the Supplier Statement.  Owner's failure to notify Contractor within the 5-day period constitutes acceptance of all persons identified in the Supplier Statement, subject to Owner's rights in Paragraph 2(a).  If Owner timely objects to any person or entity identified in the Supplier Statement, Contractor shall immediately replace the objectionable person or entity and resubmit an alternate to Owner for approval in accordance with the requirements and time constraints in this Paragraph1(c) until an acceptable alternate is submitted.  No additions to or changes of such statement will be made without the Owner's prior written consent.
(d)    Protection of the Work.  Contractor shall take all steps necessary to protect the Work from loss or damage by the elements, including fire, flood, rain, wind, hail, sand, cave-ins, collapses, and other hazards, and by the defective or incomplete labor or materials of others, or otherwise.  In the event of such loss or damage, Contractor shall promptly replace and restore the Work or any damaged portion thereof at its expense.
(e)    Overtime and Extra Labor and Equipment.  Contractor shall, at its expense, work such overtime and engage such extra labor and equipment as may be required to ensure the diligent prosecution and timely completion of the Work.
(f)    Reduction in the Work.  Owner may, by written notice to Contractor, reduce the amount of the Work to be completed by Contractor, without any liability to Contractor except to pay for work satisfactorily completed.
(g)    Permitted Delay.  Contractor shall be excused for any delay in performance or completion of the Work caused by (1) acts of God, public utilities or public bodies, (2) the elements beyond average weather conditions for the region, (3) modifications requested by Owner, and (4) other matters Contractor could not reasonably anticipate, control or avoid ("Permitted Delays").  In such event, the Completion Date shall be extended for a period equal to the Permitted Delay to the extent that it affects the critical path for performance of the Work, and provided that Contractor gives Owner written notice of the nature of the delay within twenty-four (24) hours after the delay begins, and under no circumstances shall the time of completion be extended to a date which will prevent Owner from completing the entire project within the time that Owner allows for such completion.  Contractor shall not be entitled to any additional compensation for any Permitted Delays.
(h)    Material Furnished By Others.  In the event the scope of work includes installation of material or equipment furnished by others, it shall be the responsibility of Contractor to examine the items so provided and thereupon unload, lift, handle, store and install the items with such skill and care as to insure a satisfactory installation.  Loss or damage due to acts of Contractor shall be charged to the account of Contractor and deducted from monies owed to Contractor under this Agreement. 
		
	2.
	    Job Site Conditions.

(a)    Supervision of the Work.  Contractor shall supervise and direct the Work at all times.  In this regard, Contractor shall (i) enforce strict discipline and good order among its employees (and those of its subcontractors and suppliers), (ii) faithfully and rigidly observe and ensure that its agents, employees, suppliers and subcontractors so observe, all (1) Laws and prudent business practices, and (2) rules of Owner and Contractor in effect at the Job Site from time to time, (iii) not employ or allow at the Job Site any unfit person or anyone not skilled in the work assigned to him and (iv) retain only competent persons on the jobsite.  Any person Owner determines to be incompetent, disorderly or otherwise unsatisfactory shall be immediately removed from the Job Site and shall not again be employed at the Job Site or at any other job of Owner.  Contractor shall not allow its own employees, its subcontractors' employees, or any other persons associated with the Work to (i) consume alcoholic beverages or illegal substances at the Job Site, (ii) perform any labor or work or traveling to or from the Job Site while under the influence of alcohol or illegal substances, and (iii) bring pets to the Job Site.

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(b)    No Defects.  Contractor's commencement of the Work constitutes Contractor's acceptance of the work of other contractors previously completed or commenced, and Contractor's acknowledgment that the Plans and Specifications are free of defects that would adversely affect Contractor's performance of the Work.  Contractor waives all claims against Owner with respect thereto.  If Contractor discovers a defect in the Plans and Specifications, the Work or in the work of others, Contractor shall immediately notify Owner of such defect.
(c)    Signs.  Contractor shall not post any sign at or in the vicinity of the Job Site nor permit any of its suppliers, subcontractors or employees to do so without the prior written approval of the style, size, type, color and location of the sign from Owner and from each applicable governmental agency.
(d)    Integration of the Work.  If necessary to integrate the Work with the work of others at the Job Site, Contractor shall (i) cut, fit, patch or plaster the Work so that it will be properly integrated with, receive or be received by, as applicable, the work of others, and (ii) alter the work of others provided (1) the prior written consent of Owner and the other contractors’ whose work will be affected is obtained, and (2) Contractor patches, plasters, paints, repairs and restores, at its expense, such altered work of others.
(e)    Hazardous Material.  Contractor shall not permit any Hazardous Material (as defined below) to be located, used, incorporated into the Work or brought onto the Job Site in connection with the Work unless (i) absolutely necessary because no alternative is available, (ii) the precise nature and quantity of the Hazardous Material is specified in writing to Owner, (iii) the prior written approval of Owner is obtained, and (iv) Contractor complies with all Laws and prudent business practices concerning the Hazardous Material required.  If Contractor encounters any material it reasonably believes to be Hazardous Material, or becomes aware of any incident involving Hazardous Material at the Job Site, Contractor shall immediately stop the Work in the area so affected and shall immediately report the same to Owner.  Contractor shall also immediately notify Owner of any notice Contractor receives concerning the presence or use of Hazardous Material at the Job Site.  Contractor shall be liable for all on and off-site disposal or transport of Hazardous Material (and shall sign any manifest for the transport or storage of such Hazardous Material), and for any discharge, release, injury to any person, or injury or damage to any property resulting from use of Hazardous Material in the performance of the Work.  Contractor shall, at its expense, cause the removal of the Hazardous Material and remedy any associated problems in accordance with applicable Laws and prudent business practices.  "Hazardous Material" shall mean (1) any Hazardous Material as defined under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Resource Conservation and Recovery Act, or under any applicable state or local Laws, (2) any substance or matter that results in liability to any person or entity from discharge of or exposure to such substance or matter under any statutory or common law theory, (3) pesticides, asbestos, formaldehyde, polychlorinated biphenyl, solvents, petroleum and motor fuel hydrocarbon material, and (4) any other substance or matter that becomes subject to any federal, state or local agency order or requirement for removal, treatment or remedial action.
To the extent permitted by Law, and without in any way limiting any other indemnity obligation under this Agreement, Contractor shall indemnify, defend (at Contractor's sole cost and with legal counsel acceptable to Owner) and hold Owner and their respective officers, directors, agents, employees, representatives, shareholders, partners, affiliates, successors and assigns harmless, from and against any and all claims, losses, costs or liabilities arising out of an incurred connection with removing or remediating any Hazardous Materials on or about the Job Site or transported on, to, from or about the Job Site by Contractor.  This indemnity shall be effective during and after completion of the Work.
(f)    Cleanup, Storage and Safety.  Contractor shall maintain the site of the Work and the vicinity thereof, in a clean, neat and safe condition, to Owner's satisfaction and shall (i) store all materials, supplies and equipment in appropriate containers or enclosures that are secure from access by persons not associated with the Work in locations acceptable to Owner, (ii) remove from the Job Site all excess material and debris nightly during the performance of the Work, and all equipment, unused material and supplies and temporary structures upon completion of the Work, (iii) return each fence, barrier and obstruction that is temporarily relocated or displaced by Contractor to its original position and condition immediately after its relocation or displacement is no longer necessary.  No temporary structures, including construction trailers or other temporary office facilities, shall be placed or maintained at or in the vicinity of the Job Site without the Owner's prior written approval. Contractor shall take all reasonable safety precautions in the performance of the Work, including compliance with all OSHA requirements.  Contractor shall immediately notify Owner of any injury to any employee or agent of Contractor occurring at the Job Site.
		
	3.
	Examination by Contractor.

(a)    Review of Relevant Matters.  Contractor has examined, investigated and familiarized itself with: (i) the Plans and Specifications; (ii) the nature and location of the Job Site; (iii) the conformation of the ground and improvements of other contractors on which the Work is to be performed; (iv) the character, quality and quantity of the materials, equipment and facilities necessary to complete the Work in a good and workmanlike manner; (v) the general and local conditions relating to the Work; and (vi) all other matters that may affect Contractors performance of this Agreement.
(b)    No Reliance on Owner.  Contractor enters into this Agreement relying solely on its own examination and investigation of the foregoing matters and not on any representation or information relating to the Job Site or the Work (or the completion thereof) made by Owner or any agent of Owner not expressly contained in this Agreement.  Contractor assumes all risk of unknown Job Site conditions and releases Owner from any claim for additional compensation resulting from concealed or unknown and unusual Job Site conditions.
(c)    Satisfaction with Plans.  Any clarifications of any inadequacy, inconsistency, omission or conflict in the Plans and Specification or conflict or inconsistency in the Plans and Specifications and the Shop Drawings shall be made by Owner.  Contractor's failure to request any such clarification before execution of this Agreement shall not relieve Contractor of its obligation to perform in accordance with Owner's interpretations of the Plans and Specifications thereafter.  Contractor shall not be entitled to any additional compensation for performing the Work pursuant to Owner's interpretation of the Plans and Specifications.

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4.    Insurance.
 Contractor shall, at its sole expense, maintain in effect at all times during the term of this Agreement and for a period of one year following completion of the Work, from a carrier with a Best rating of A-VIII or better, Workers' Compensation and Employer’s Liability, Commercial General Liability and Commercial Automobile Liability Insurance that covers all risks associated with the performance of the Work, the operation of vehicles, and the behavior of Contractor, its employees, suppliers, subcontractors and any other persons or entities associated with the Work at the request of or on behalf of Contractor.  Except as otherwise permitted by Law, such insurance shall include the following:
(a)    Statutory Workers' Compensation Insurance for all employees of Contractor together with Employer’s Liability coverage with minimum policy limits of one million dollars ($1,000,000) for bodily injury by accident/each accident, $1,000,000 bodily injury by disease/each employee, and $1,000,000 bodily injury by disease/policy limit.  Coverage must include waiver of subrogation endorsement in favor of Owner.
(b)    Commercial General Liability Insurance (Occurrence Form), including, but not limited to, Products-Completed Operations coverage and Contractual Liability assumed by Contractor with minimum policy limits of two million dollars ($2,000,000) General Aggregate, $2,000,000 Products-Completed Operations Aggregate, $1,000,000 Each Occurrence and $1,000,000 Personal and Advertising Injury.  Such coverage shall include an endorsement naming Owner as additional insured stating “Certificate Holder is named as Additional Insured per ACORD 25 Form (or equivalent form), an endorsement providing that the insurance afforded under Contractor’s policy is primary insurance with respect to Owner, and that any other insurance maintained by Owner is excess and non-contributory.  Coverage must include a Waiver of Subrogation endorsement.
(c)    Commercial Automobile Liability with minimum policy limits of $1,000,000 Combined Single Limit per accident for bodily injury and property damage, including coverage for owned, hired or non-owned vehicles operated by or on behalf of Contractor and used in connection with this Agreement. Owner will be named as additional insured. 
(d)    In addition to the above requirements, Owner reserves the right to require Umbrella or Excess Liability coverage.  Such additional requirements, if any, are attached hereto as Exhibit E.
Prior to occupying or beginning any Work on the Job Site, Contractor shall provide Owner with Certificates of Insurance evidencing such coverage in a form reasonably acceptable to Owner.

5.    Withholding Payment.
(a)    Reasons for Withholding.  Owner may withhold payments otherwise due to Contractor under this Agreement for any of the following reasons:
(i)    Omission of any Work required by this Agreement or Contractor's failure to cure defective or damaged Work;
(ii)    Failure to submit to Owner all information and waivers and releases required under this Agreement;
(iii)    Mechanics' liens, materialmen's liens, stop notices or bonded claims are filed or recorded or reasonable evidence indicating the probable filing or recording of such liens, notices or claims by Contractor or its suppliers or subcontractors, in which case Owner may withhold (1) in the case of a lien, notice or claim by Contractor, the amount claimed in the lien, notice or claim, and (2) in the case of a lien, notice or claim by Contractor's suppliers or subcontractors, One Hundred Fifty Percent (150%) of the amount sought;
(iv)    Contractor's failure to make payments properly to subcontractors, suppliers, materialmen, laborers, or other persons entitled to file a mechanics' lien, materialmen's lien, stop notice or claim as well as to union fringe benefit trust funds (to the extent required);
(v)    The existence of reasonable doubt by Owner that the Work will be completed for the balance of the Contract Price then unpaid, unless Contractor deposits with Owner funds in the amount of such suspected deficiency or performs a sufficient portion of the remaining Work to be performed at Contractor's sole cost so that such portion of the Contract Price then remaining unpaid is determined by Owner to be sufficient to complete the Work;
(vi)    Contractor's failure to complete the Work, or any reasonable indication that the Work will not be completed within the time required in this Agreement;
(vii)    Contractor's failure to construct, install or perform the items of the Work as required in this Agreement, or any reasonable indication that Contractor will be unable to perform the terms of the Work as required in this Agreement; and
(viii)    Any other grounds for withholding payment permitted by the Laws, or as otherwise permitted by this Agreement.
(b)    Payment of Withheld Amount.  Whenever the grounds giving rise to the above withholding have been removed, Owner shall pay Contractor the amount withheld less any expenses or damages Owner incurs as a result of the withholding, the cause of the withholding or the removal of the cause of the withholding.  If any of Contractor's laborers, subcontractors, suppliers or materialmen are not paid, Owner may pay such persons directly.  Any payment Owner makes directly to any of Contractor's laborers, subcontractors, suppliers or materialmen or for their benefit shall be deemed payment to Contractor and shall be credited against the Contract Price.

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6.    Changes in the Work.
(a)    Change Order Request.  Owner may, at any time and from time to time, order additions, deletions or other modifications to the Work (a "Work Change") by submitting a written change order request to Contractor ("Change Order Request").  Owner's Designated Representative is the only person authorized to sign Change Order Requests.  Contractor shall not be compensated for any Work Change performed by Contractor at the request of anyone other than Owner's Designated Representative pursuant to a written Change Order Request.  Upon receipt of a duly authorized Change Order Request, Contractor shall perform any extra work, make any substitutions in the Work, or omit any portion of the Work required thereby and shall not thereafter perform any work or order materials that are inconsistent with such Change Order Request.  Contractor or anyone acting for or on behalf of Contractor shall not be entitled to any additional compensation for any labor, materials or equipment performed or ordered after receipt of a duly authorized Change Order Request if the same are not consistent with the Change Order Request.  Contractor shall (i) maintain records of all duly authorized modifications made to the Work, (ii) notify Owner's Representative of each such duly authorized modification immediately upon making the modification, and (iii) show such duly authorized modifications on a copy of the Plans and Specifications.  
(b)    Change Order Statement.  Upon receipt of a Change Order Request, Contractor shall promptly furnish to Owner a statement in the form of Exhibit D ("Change Order Statement") setting forth in detail, with a labor and material breakdown by trades and work classifications, (i) Contractor's estimate of any changes in the Contract Price attributable to the Change Order Request, and (ii) any proposed adjustment of the Completion Date resulting from the Change Order Request.  Such Change Order Statement shall be delivered to Owner within five (5) business day after Contractor's receipt of a Change Order Request.  Contractor shall have no claim for additional compensation as a result of the Change Order Request unless a Change Order Statement is delivered to Owner as required by this paragraph.
(c)          Adjustments to Contract Price.  
(i)    Upon receipt of a Change Order Statement, Owner shall determine the adjustment, if any, to the Contract Price.  Contractor shall be deemed to have accepted the adjustment or nonadjustment to the Contract Price if Owner does not receive written objection notice from Contractor within five (5) business days after Contractor's receipt of notice of the amount of the adjustment or nonadjustment to the Contract Price from Owner.  If Contractor timely delivers a written objection notice to Owner, the adjustment shall be determined by applying one of the following standards: (1) by reference to Unit Prices or (2) in the case of additions to the Work, cost of performing the additional work plus fifteen percent (15%), and in the case of deletions from the Work, an amount equal to the savings in cost plus ten percent (10%).  The Work shall not be delayed or interrupted during resolution of the adjustment or nonadjustment to the Contract Price.
(ii)    Alternatively, and in Owner's sole discretion, Owner may ask Contractor to submit bid prices for the modifications in the Work.  Such bid prices shall be consistent with the contract prices for the Plans and Specification covered by this Agreement.  If any bid price is not consistent, Owner may accept bids from other contractors. If the same are lower than that of Contractor, Owner will afford Contractor the opportunity to adjust its bid accordingly.  If Contractor does not agree to adjust its bid accordingly within five (5) business days, Owner may, at its option, renegotiate or terminate this Agreement in its entirety.
(d)          Contractor Initiated Changes.   If the Contractor initiates a substitution, deviation or change in the work which affects the scope of work or the expense of other trades, Contractor shall be liable for the expense thereof, and any incidental extra work created by the change to the Owner’s work.  

7.    Warranty, Testing and Correction.
(a)    Warranty of Materials and Workmanship.  Notwithstanding that any labor, equipment, or material furnished or installed by Contractor has been approved or accepted by Owner or any governmental agency, Contractor expressly warrants that all labor, material, equipment, and fixtures furnished or installed by it (or by its subcontractors or materialmen) hereunder shall be of good quality, free of any faults and defects including patent, latent or developed defects, and shall be completed as required in this Agreement.  This warranty shall survive for so long as Owner may be held liable for the matters warranted hereunder (in their respective roles as contractor, builder or seller) but in no event less than one (1) year after the date of completion and final acceptance of the Work.  The above warranty shall not limit or affect other warranties or guarantees expressly or impliedly made by Contractor or any of its subcontractors or materialmen and shall not limit or affect any remedies concerning express or implied warranties or negligent or willful acts or omissions of Contractor or any of its subcontractors or materialmen.  The above warranty shall be for the benefit of Owner and its respective successors and assigns.
(b)    Testing and Inspection of the Work.  Contractor shall, at its expense, obtain all inspections and approvals required by any Law or other guidelines of any public authority having jurisdiction over the Work.  Contractor shall furnish Owner with originals of all certificates of inspection, testing and approval.  Owner shall not be responsible for reviewing, nor shall its review and acceptance of the Work or any part thereof be deemed an endorsement or approval of, the safety or design of the Work or any part thereof or a determination of conformance with the Laws; provided, however, that Owner may test, inspect and approve the Work or cause the same to be accomplished without notice to Contractor.  Contractor shall make all portions of the Work available for inspection, testing and approval by Owner and all applicable governmental authorities.  Contractor shall notify Owner in writing of any inspection or testing that must be performed within a certain time period so as not to require modification of the Work or the work of others in connection with the inspection, testing and approval.  If Contractor fails to so notify Owner, Contractor shall assume full responsibility for and costs of the uncovering of the Work or the work of others to allow the required inspection, testing and approval and the restoration of the Work and the work of others so affected.

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(c)    Correction and Removal of Defective Work.   Contractor shall, at its own expense, provide all materials and labor to correct any defects in the Work, materials or equipment supplied by Contractor (together with any damage to all finishes, fixtures, equipment and personal property damaged as a result of such defects) in a manner reasonably satisfactory to Owner.  Contractor shall begin all corrective work necessary to cure any defect in the Work, materials or equipment supplied by Contractor within three (3) calendar days after receiving written notice from Owner; provided, however, that any defect related to plumbing, heating, electrical, and roofing shall be completed immediately after the notice to repair if Contractor is performing such type of work or supplying appurtenant equipment (e.g., HVAC).  Contractor shall diligently prosecute all corrective work to completion.  Contractor shall report to Owner in writing all action Contractor took to remedy the defective Work, materials or equipment and shall obtain the Owner's signature acknowledging its satisfaction of the corrective work.  If any defect is not satisfactorily remedied in the above specified time, or if Owner elects (in its sole discretion) to remedy the defect, Owner may, at its election remedy such defect.  If Owner remedies a defect for Contractor, Contractor shall pay to Owner the costs of all corrective work plus interest at the Default Rate from the date the corrective work is completed until the correction costs are paid by Contractor.
8.    Indemnification, Release and Limitation of Liability.
(a)    Indemnification.  Contractor shall indemnify, defend (at Contractor's sole cost and with legal counsel acceptable to Owner) and hold the Owner, Construction Manager and their partners, shareholders, directors, officers, agents and employees (collectively, the "Indemnified Parties"), harmless from all losses of profit, obligations, liabilities, claims, demands, damages, debts, expenses, and causes of action including, without limitation, (i) attorney fees, (ii) liabilities or damages incurred by Owner as a result of damage to property owned by Owner or others, (iii) bodily injury, (iv) death, and (v) any claims against or expenses incurred by Owner as a result of Owner's failure to timely and fully perform its obligations under any contract with a purchaser of real property from Owner, or incurred by Owner as a result of the failure of Owner to timely and fully perform its obligations under any contract with a contractor or supplier which arises from or relates to (1) defects in or inferiority of the materials, design or workmanship of the Work, (2) acts and omissions of Contractor or of any person or entity acting on Contractor's behalf, in connection with the Work, (3) Contractor's failure to fulfill its obligations under this Agreement in strict accordance with its terms, including Contractor's failure to perform any portion of the Work, (4) Contractor's breach of any representation or warranty given in this Agreement or elsewhere or provided for by law, (5) the behavior and activities of Contractor, its employees, agents, subcontractors, materialmen, suppliers, and any other persons or entities associated with the performance of the Work, (6) violation or alleged violation of any Laws by Contractor or by any of Contractor's directors, officers, employees, agents, subcontractors or suppliers, (7) any unpatented or patented inventions, article or appliance manufactured or used by or on behalf of Contractor in connection with the performance of the Work, (8) any use or misuse of the Job Site or any portion thereof or improvement thereon by Contractor or any of its agents, employees, subcontractors or suppliers, or (9) any and all claims of lien and liens arising out of or in any manner directly or indirectly related to the Work, (provided that at the time such claim of lien or liens is brought or filed, Contractor has been paid all sums due to Contractor for the work performed to the date of such claim of lien or liens).  To the extent permitted by law, this indemnification shall apply regardless of any active or passive negligent act or omission of the Indemnified Parties, but shall not include any injury or harm that is caused exclusively by the gross negligence or willful misconduct of the Indemnified Parties or any of them.  This indemnification shall be effective during and after completion of the Work.
(b)    Release.  Contractor waives and releases Owner from all claims, demands, expenses, debts, damages, and liabilities, including, lost wages, pain and suffering, permanent or temporary disability, medical and hospital expenses, attorney fees, and costs of repair and replacement of Contractor's property, which arises from or relates to (a) the physical condition, security or maintenance of the Job Site and the vicinity thereof; (b) vandalism, theft, or any other willful or negligent act by any person or entity at the Job Site or in the vicinity thereof, including, the operation of a motor vehicle; or (c) the activities, omissions or behavior, whether or not negligent, of suppliers and other contractors and subcontractors, whose services have been or are being utilized by or on behalf of Owner, as well as the activities, omissions or behavior of their agents and employees, whether or not actively or passively negligent.  Nothing in this subparagraph (d) shall release any of the Indemnified Parties from liability for their exclusive willful or grossly negligent acts.
9.    Trade Unions and Employees.
(a)    Labor Relations/Contractor.  Contractor agrees to comply with all of the terms and conditions of labor agreements governing the work insofar as Contractor may lawfully do so, and in particular agrees to comply with the terms and provisions of said agreements setting forth the jurisdiction and the scope of work claimed by each of such crafts and the procedure contained therein for resolution of jurisdictional disputes.  In the absence of any such procedure, or if such procedure fails to promptly resolve the jurisdictional dispute, Contractor agrees, at his own cost and expense, upon request of Owner to take any and all lawful steps to secure a binding and final determination of said jurisdictional dispute by the National Labor Relations Board.  Nothing in this Agreement shall relieve Contractor of its obligation to provide adequate staff to perform the Work in the manner prescribed by this Agreement.  Immediately upon receipt of Owner's oral or written request, Contractor shall furnish Owner with a copy of (i) each collective bargaining agreement or other labor agreement governing compensation of Contractor's employees and any other person associated with the Work, (ii) Contractor's payroll records demonstrating that Contractor is not delinquent concerning payment of its employees, and (iii) Contractor's records demonstrating that Contractor is not delinquent payments to health and welfare, pension, vacation, apprenticeship, or other union fringe benefit trust funds.
(b)    Labor Relations/Contractor's Agents.  Within five (5) business days of receipt of a written request from Owner, Contractor shall obtain and furnish Owner with (i) statements from each union fringe benefit trust fund established as a result of every collective bargaining agreement or other labor agreement applicable to the Work, including the collective bargaining agreement or other labor agreement governing the employees of Contractor's subcontractors, (ii) a copy of each collective bargaining agreement or other labor agreement governing compensation of the employees of Contractor's subcontractors, (iii) each such subcontractor's payroll records demonstrating that such subcontractor is not delinquent concerning payments of its employees, and (iv) each such subcontractor's records demonstrating that such subcontractor is not delinquent with respect to payments to health, welfare, pension, vacation, apprenticeship, or other union fringe benefit trust funds, in all cases, to the extent required or permitted by law.

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(c)    Labor Relations/Breach.  If Contractor or any of its subcontractors are or become, during the term of this Agreement, delinquent in the payment to the appropriate health, welfare pension, vacation or apprenticeship fund or funds (and regardless of whether the employees involved are employed on the Job Site or elsewhere), Owner may (i) deduct the full amount of such delinquencies from payments to be made to Contractor hereunder and without recourse by Contractor, (ii) pay such amount so deducted without inquiry as to the correctness of the amount or the validity of such claimed delinquencies, (1) directly to the appropriate fund or funds, or (2) by joint check payable to Contractor and the appropriate fund or funds.

10.    Liens and Stop Notices.  Contractor shall pay when due, all claims asserted and debts in favor of persons or entities who furnish labor, material, services, fixtures, or equipment applied to or utilized in the performance of the Work.  Contractor shall not cause or permit (a) the recordation of any claim of lien on Owner's property, (b) the imposition of any stop notice on funds held by a lender (a "Project Lender") that are intended to be paid to Owner pursuant to an agreement to finance completion in whole or in part of the project at the Job Site, and (c) the garnishment or attachment of funds held by Owner, by promptly satisfying all claims and debts asserted against Contractor or Contractor's subcontractors by such persons or entities.  In addition, Contractor shall use all possible means to cause (a) Owner's property to be released from all claims of lien, (b) all funds withheld from Owner on account of stop notices to be released from the effect of such notices, and (c) all suits to be dismissed against Owner within fourteen (14) days after each such claim of lien has been recorded against Owner's property, each such stop notice has been served upon a Project Lender and each such suit is brought against Owner, Contractor shall not apply any payments made by Owner to satisfy claims of suppliers, materialmen, subcontractors, utilities, or insurance companies unless such claims have arisen as a result of the work described in the Invoice being paid by Owner.  Contractor agrees within fourteen (14) days after written demand to cause the effect of any suit or lien to be removed from the premises, and in the event Contractor shall fail to do so, Owner is authorized to use whatever means in its discretion it may deem appropriate to cause said lien or suit to be removed or dismissed and the cost thereof, together with reasonable attorney’s fees, shall be immediately due and payable to Owner by Contractor.
11.    Bonding.
(a)    Faithful Performance Bond.  Owner may at any time require Contractor to furnish a faithful performance bond issued in a form and by a surety company acceptable to Owner securing the Contractor's faithful performance of its obligations under this Agreement, in an amount not less than the value of the Work remaining to be performed.  Upon Owner's request, Contractor shall indemnify the surety or post adequate collateral, or both, to secure any indemnity to any surety.  Owner shall pay the bond premium amount up to a maximum of one percent (1%) of the Contract Price.
(b)    Labor and Material Payment Bond.  Owner may at any time require Contractor to furnish a labor and material payment bond issued in a form and by a surety company acceptable to Owner, securing Contractor's payment of all monies owed to its employees, subcontractors, suppliers and any other persons or entities who may claim a mechanics' lien or materialmen's lien upon the Job Site.  Upon Owner's request, Contractor shall indemnify the surety or post adequate collateral, or both, to secure any indemnity to any surety.  The labor and material payment bond shall be an amount the lesser of one hundred and fifty percent (150%) of the Contract Price, or the maximum allowed by Law.
12.    Default and Remedies.
(a)    Failure to Perform.  Contractor's failure to comply with any of the provisions of this Agreement or in the event that Contractor at any time refuses, neglects or fails to supply a sufficient number of properly skilled workmen or a sufficient quantity of materials of proper quality, (i) make prompt payment to his materialmen and or laborers or fails in any respect to properly and diligently prosecute the work covered by this Agreement, or becomes delinquent with respect to his materialmen and or payment required to be made to any Health and Welfare, Pension, Vacation, Apprenticeship or other employee benefit program or trust, (ii) fulfill any of the provisions these General Conditions by him to be performed, or otherwise fails to perform fully any and all of the agreements herein contained, or the occurrence of any of the events set forth in Sections 12(b)(i)-(iv) below, shall constitute a default by Contractor, and Owner may, at its sole election and without notice to Contractor, take any one or more of the following remedial actions, none of which (other than subparagraph (iv) of this Paragraph 12) shall be deemed exclusive of any other:
(i)    Any remedy provided elsewhere in this Agreement.
(ii)    If Contractor fails to remedy any default within forty-eight (48) hours after receipt of written notice at the address appearing on the signature page of this Agreement or such longer period as is reasonably necessary if such breach cannot be cured within such forty-eight (48) hour time period (provided Contractor commences to cure immediately and thereafter diligently prosecutes such cure to completion), Owner may elect to terminate the Contractor's right to perform the Work in whole or in part without liability to Contractor for any Work thereafter performed by Owner or anyone else.  In such event, Owner may: (1) complete the Work or correct any failures in the Work and procure such equipment, labor and materials as is necessary therefor, and in so doing use any of Contractor's equipment and consume any materials on the Job Site until it is completed, and Contractor shall pay Owner the cost of such completion or correction, plus fifteen percent (15%) of such costs to compensate Owner for overhead and administration; (2) sue for and recover from Contractor the reasonable value of all or a portion of the cost to complete the performance of the Work; (3) sue for and recover from Contractor all damages arising out of such default, including but not limited to, loss of profits and recovery of any and all costs and expenses whatsoever directly or indirectly related to such default, or (4) pursue all alternatives under (1), (2) and (3).  If Owner completes the Work, Contractor shall receive no further payment until the Work is completed.  When the Work is completed, Owner shall pay Contractor the amount owing on the Contract Price less all of the costs Owner incurred in completing the Work, the fifteen percent (15%) markup described above and any attorney fees incurred by Owner as a result of such breach.
(iii)    Owner may withhold payment of any monies due until the default has been cured.

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(iv)    Contractor acknowledges that if Contractor breaches this Agreement by delay in commencing or completing the Work (for any reason other than a Permitted Delay), the damages Owner would suffer ("Delay Damages") would include, among other items, losses, payments, liabilities and damages resulting from additional direct costs (including such items as Job Site payroll, cost of supervision, cost of site office facilities, Job Site telephone and rental value of any equipment not being utilized in connection with the other Work being performed at the Job Site), additional overhead expenses of the main office (including such items as salaries of executives and all other personnel, rent, and utilities), increased labor and material costs, and damages Owner may be required to pay to  other contractors and third parties.  Contractor also acknowledges that such Delay Damages would be difficult and impracticable to ascertain.  Therefore, for any day Contractor fails to commence or complete the Work required Contractor shall pay Owner, upon demand, liquidated damages of $ ______ per day for each day of delay.  The parties agree that the liquidated damages amount is a fair and reasonable approximation of the Delay Damages and shall be Owner's sole and exclusive remedy on account of any such delay.  Such liquidated damages may be deducted from amounts otherwise due Contractor.  If the liquidated damages are not paid upon Owner's demand, and the amounts otherwise due Contractor by Owner are less than the amount of the liquidated damages, the difference shall bear interest from the date of demand at the Default Rate, until paid in full by Contractor. 
(v)    Owner may set off the costs to complete the Work against monies due to Contractor under any other contract between Owner (or any entity owned or controlled by the Owner) and Contractor (or any entity owned or controlled by Contractor), whether such contract is in effect before or after this Agreement.
(vi)    Owner may pay any sums to any such persons, firms, itself or other entities to whom Contractor is obligated and to charge such sums paid to the account of Contractor without recourse by Contractor and without inquiry as to the validity of such obligation and the correctness of the amount thereof.  If such sum is greater than the amount then due Contractor, the excess shall be a debt due from Contractor to Owner and shall bear interest at the Default Rate from the date due until paid.
(vii)    Any and all such other remedies as may be provided at law or in equity.
(b)    Termination for Insolvency.  Owner may terminate Contractor's right to do the Work by giving Contractor at least twenty-four (24) hours written notice at any time after the occurrence of any of the following events (i) the filing of a petition for relief under the Bankruptcy Code or the institution of any other insolvency proceedings by, against, or on behalf of Contractor, (ii) the appointment of a receiver for Contractor, (iii) the death, dissolution or liquidation of Contractor, (iv) the transfer to others of more than twenty-five (25%) of the assets or ownership interest of Contractor, and (v) any act of insolvency by Contractor.  If an order for relief is entered under the Bankruptcy Code for the benefit of Contractor, Owner may terminate Contractor's right to do the Work by giving twenty-four (24) hours’ notice to Contractor, its trustee and its surety, if any, unless Contractor, the surety or its trustee: (1) immediately cures or takes action to cure all defaults of Contractor, (2) provides Owner adequate assurance of performance under this Agreement, (3) makes Owner whole for all loss suffered by Owner as a result of Contractor's default, and (4) assumes all obligations of Contractor within statutory time limits.
(c)    Termination by Owner.  Owner may also terminate this Agreement at any time before Contractor begins the Work and notifies Owner in writing of such commencement if (1) Owner sells the property on which the Work is being performed or (2) the economic climate does not warrant proceeding with the project of which the Work is a part.  In such circumstance, Contractor shall be entitled to receive that portion of the Contract Price earned by Contractor for Work performed to the satisfaction of Owner less any payments made before the date this Agreement is terminated.  Contractor shall not be entitled to any additional compensation or damages as a result of termination of this Agreement pursuant to this Paragraph 12(c).
(d)    Assignment of Contracts upon Termination.  If Contractor's right to perform the Work is terminated, any agreement of Contractor relating to the Work with third parties shall, at the election of Owner, be assigned to Owner without the need for further documentation.

(e)    Dispute Resolution.   Any dispute arising out of or relating to this Agreement shall be submitted to mediation by a neutral mediator with the parties equally sharing all costs of the mediation.  Failure to mediate shall result in a forfeiture of any rights to attorneys' fees and costs as set forth below.  Any dispute arising out of or relating to this Agreement, after having been submitted to mediation, shall be settled by arbitration in accordance with the rules of the American Arbitration Association.  The parties shall equally share all initial costs of arbitration. The prevailing party shall be entitled to reimbursement of attorneys' fees and costs as set forth below.  All decisions of the arbitrator shall be final, binding and conclusive on all parties.  Judgment may be entered upon any such decision in accordance with applicable Law in any court having jurisdiction thereof.  The venue for mediation and/or arbitration for any dispute arising out of or relating to this Agreement shall be in the state where the Job Site is located.

		
	13.
	Contractor Representations.  Contractor represents and warrants the following to Owner:

(a)    Authority.  Contractor is duly organized, validly existing and in good standing under the laws of the state in which it is organized and is duly authorized to operate in the state where the Job Site is located.  Contractor has all necessary powers to carry on its business.  Contractor has the right, power, legal capacity and authority to enter into this Agreement.  This Agreement and each document or instrument to be executed by Contractor pursuant to this Agreement, are and shall be valid, legally binding obligations of and enforceable against Contractor in accordance with their terms.  Contractor has taken all necessary action to authorize the execution, delivery and performance of this Agreement.  No further, approval or authority of any nature or other action by any person or entity is required in connection with the execution and delivery of this Agreement by Contractor, and the performance of the Work by Contractor.

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(b)    Litigation.  Except as disclosed to Owner in writing concurrently with the execution of this Agreement by Contractor, there is no suit, action, arbitration, or legal administrative or other proceeding, or non-insured workers' compensation claim or governmental investigation pending or to its best  knowledge threatened after doing diligent inquiry, against or affecting Contractor.  Contractor is not in default concerning any order, writ, injunction or decree of any federal, state, local or foreign court, department, agency or instrumentality.  No attachments, execution proceedings, assignments for the benefit of creditors and insolvency, bankruptcy, reorganization or other proceedings are pending or threatened against Contractor or to its knowledge, any general partners of Contractor nor are any of such proceedings contemplated.
(c)    Financial Capability.  Contractor is and will remain financially solvent and financially capable of discharging its obligations under this Agreement.
(d)    Skill.  Contractor and everyone acting on its behalf in connection with the Work is skilled in performing the Work and in the means, methods, techniques, sequences and procedures related to completing the Work in the most expeditious and economical manner consistent with the interest of Owner.  Contractor is familiar with all manufacturer's instructions and specifications concerning the Work and the application, connection, erection and use of all equipment, materials and supplies incorporated into or that are a part of the Work.  Contractor is also familiar with all Laws applicable to the Work, has carefully studied the Work requirements and the Plans and Specifications, has made a thorough investigation and inspection of the physical condition of the Job Site and will remain familiar with all the physical and economic risks associated with the performance of the Work and assumes all such risks.
(e)    Licenses.   Contractor has and shall maintain all licenses and permits necessary to perform the Work and all other obligations of Contractor under this Agreement.
(f)    Agreement.  Contractor has read and has familiarized itself with all of the provisions of this Agreement on its own and without relying on any information obtained from Owner.
(g)    Safety.  Contractor shall, at its own expense, comply with all specific safety requirements promulgated by any government authority, including, without limitation, the requirements of the Occupational Safety Health Act of 1970, the Construction Safety Act of 1969, the California Labor Code, all successions and amendments to the foregoing, and all standards and regulations relating to occupational health and safety which have been or shall be promulgated by the parties or agencies which administer the same.  Contractor shall have and exercise full responsibility for compliance hereunder by itself, its agents, employees, materialmen, and subcontractors with respect to its portion of the work on this Project: and shall directly receive, respond to, defend and be responsible for any citation, assessment, fine, or penalty by reason of Contractor’s failure or failure of Contractor’s agents, employees, materialmen, and subcontractors to so comply.  Contractor shall indemnify and hold harmless Owner from and against any liability, loss, damage, cost, claims, awards, judgments, fines, expenses, including litigation expense, reasonable attorney’s fees, claims or liability for harm to persons or property, expenses incurred pursuant to or attendant to any hearing or meeting and any other applicable cost which may be incurred by Owner resulting from Contractor’s failure to fulfill covenants set forth in this paragraph.
In the event Contractor fails to comply with any citation issued by the Secretary of Labor or of any other body responsible for the administration and/or enforcement of any statute, regulation or ordinance relating to occupational health and safety within the period specified in any such citation or order, Owner may, in his discretion, exercise the rights and remedies provided him under the terms of this Agreement, including, but not limited to, the rights and remedies provided.
14.    Miscellaneous.
(a)    Nondiscrimination.  Contractor shall comply with all nondiscrimination Laws to the extent applicable to Contractor's performance of this Agreement.
(b)    Joint Payment.  Owner may, at its election and without the Contractor's consent, make any payment due hereunder jointly to Contractor, any of its subcontractors, materialmen, suppliers, and any other persons or entities who may claim a mechanics' lien or materialmen's lien as a result of the Work.
(c)    Construction.  Whenever used in this Agreement, the singular shall include the plural and the plural the singular.  The word "including" shall mean "including without limitation."  The word “materialman” shall have the same meaning as the term “material supplier”.
(d)    No Waiver.  Owner's express or implied waiver of any provision of this Agreement shall not constitute a future or further waiver by Owner of the same or other provision of this Agreement.  Delay in the enforcement of any remedy, or in the exercise of any right, shall not be a waiver.
(e)    Entire Agreement.  This Agreement and all of the addenda, attachments, schedules and exhibits hereto, which are hereby incorporated into this Agreement by this reference, are the entire agreement between the parties, and supersede all previous communications, representations or agreements, either written or oral, between the parties hereto concerning the subject matter hereof.  Any changes to this Agreement (including any change to any of the attachments hereto) must be in writing to be effective and signed by each party's respective Designated Representatives.
(f)    Counterparts; Facsimile Signatures.  This Agreement may be executed in counterparts.  Each counterpart is an original, and all counterparts together shall constitute one instrument. This Agreement may be executed by facsimile signature by any party and such signature will be deemed binding for all purposes hereof without delivery of an original signature being thereafter required.  In addition, any party may effect the execution and delivery of this Agreement by signing the same and sending a copy thereof to the other party or its attorney by facsimile transmission. Such facsimile document, including the signatures thereon, shall be treated in all respects as an original instrument bearing an original signature. 
(g)    Severability.  If any portion of this Agreement is declared by court of competent jurisdiction to be invalid or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining portions shall remain in full force.

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(h)    Assignment.   Owner may, assign all or part of this Agreement at any time.  Contractor may not assign or further subcontract any portion of the Work or its obligations hereunder or assign, transfer, convey or otherwise dispose of this Agreement or its right, title or interest in or to this Agreement or any part hereof without the prior written consent of Owner and any sureties under bonds or guaranties made in favor of Owner concerning the Work.  Owner's consent to an assignment shall not release Contractor from (1) any obligation otherwise imposed upon Contractor by this Agreement, (2) the consequences of a breach of this Agreement by Contractor's assignee or Contractor, or (3) the failure of Contractor's assignee or Contractor to satisfy all of the warranties made by Contractor in this Agreement.  If Contractor is a corporation, a change in ownership of twenty-five percent (25%) or more of its stock, whether in one or more transactions, shall constitute an assignment of the Work.  Contractor acknowledges the reasonableness of this provision due to the personal service nature of this Agreement.
(i)    Title to Improvements.  Title to all materials, fixtures, Plans and Specifications and Shop Drawings shall be deemed vested in Owner when and as the same shall have been installed, affixed permanently to the realty or otherwise delivered to Owner.  Owner shall not be liable for loss or damage to any material or fixtures as to which title is not then vested in Owner at the time of such loss or damage whether such material or fixtures are on the Job Site, in transit, under the control of Owner, or otherwise.
(j)    Time.  Time is of the essence of this Agreement.  It shall be Contractor’s obligation to conform to Owner’s progress schedule, subject to Owner’s modification, which is incorporated herein by this reference and made a part hereof.  Contractor shall prepare and obtain approval as required by the Plans and Specifications for all shop drawings, details, samples, and do all other things necessary and incidental to the prosecution of his work in conformance with the said progress schedule.  If in the opinion of the Owner the Contractor falls behind in the progress of the Work, the Owner may direct the Contractor to take such steps as the Owner deems necessary to improve the rate of progress, including, without limitation, requiring the Contractor to increase the number of shifts, personnel, overtime operations, days of work, equipment, amount of plant, or other remedies and to submit to Owner for approval an outline schedule demonstrating the manner in which the required rate of progress will be regained, without additional costs to the Owner.  Owner may require Contractor to prosecute, in preference to other parts of the Work, such part or parts if the work as Owner may specify. 

(k)    Attorney Fees.  If either party institutes any action to enforce or interpret any provision of this Agreement the prevailing party shall be entitled to recover from the other party all costs, including costs of litigation and reasonable attorney fees and expert or consultant fees. 
(l)    Independent Contractor.  Contractor is an independent contractor and shall, at its sole expense, and without increase in the Contract Price, comply with all Laws and pay all manufacturers' sales, use and processing taxes and all federal, state and local taxes.
(m)    Survival of Obligations.  Any indemnity, guaranty, representation or warranty given by Contractor to Owner in this Agreement shall survive the expiration or termination of this Agreement.
(n)    No Third Party Beneficiaries.  This Agreement is between Owner and Contractor.  Except as expressly set forth herein, no other person or entity is intended to be, nor shall be, benefited by the terms hereof, whether as a third party beneficiary or otherwise.
(o)    Default Rate.  As used herein, the term "Default Rate" means the maximum legal rate which may be charged at the time.

	
		
	_______________________________________________
OWNER
	____________________________________________________
CONTRACTOR

11
Construction Management Services Agreement

    

EXHIBIT A
TO
AGREEMENT FOR CONTRACTOR SERVICES
SUBCONTRACTORS AND SUPPLIER’S CONDITIONAL WAIVER AND RELEASE 
UPON PROGRESS PAYMENT
FORM OF SUBCONTRACTOR'S AND SUPPLIER’S CERTIFIED STATEMENT
TO ACCOMPANY INVOICE
_________________________
 CONDITIONAL WAIVER AND RELEASE ON 
PROGRESS PAYMENT 
NOTICE: THIS DOCUMENT WAIVES THE CLAIMANT’S LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS EFFECTIVE ON RECEIPT OF PAYMENT. A PERSON SHOULD NOT RELY ON THIS DOCUMENT UNLESS SATISFIED THAT THE CLAIMANT HAS RECEIVED PAYMENT. 
Identifying Information: 
Name of Claimant:________________________________________________________________________
Name of Customer:_______________________________________________________________________
Job Location:____________________________________________________________________________
Owner:_________________________________________________________________________________
Through Date:____________________________________________________________________________
Conditional Waiver and Release 
This document waives and releases lien, stop payment notice, and payment bond rights the claimant has for labor and service provided, and equipment and material delivered, to the customer on this job through the Through Date of this document. Rights based upon labor or service provided, or equipment or material delivered, pursuant to a written change order that has been fully executed by the parties prior to the date that this document is signed by the claimant, are waived and released by this document, unless listed as an Exception below. This document is effective only on the claimant’s receipt of payment from the financial institution on which the following check is drawn: 
Maker of Check:______________________________________________________________________
Amount of Check$____________________________________________________________________
Check Payable to: ____________________________________________________________________
Exceptions 
This document does not affect any of the following: 
		
	(1) 
	Retentions. 

		
	(2) 
	Extras for which the claimant has not received payment. 

		
	(3) 
	The following progress payments for which the claimant has previously given a conditional waiver and release but has not received payment: 

12
Construction Management Services Agreement

    

Date(s) of waiver and release: _______________________________________________________
Amount(s) of unpaid progress payment(s): $ _____________________________________________ 
		
	(4)
	Contract rights, including: 

(A)    a right based on rescission, abandonment, or breach of contract, and 
(B)    the right to recover compensation for work not compensated by the payment. 
SIGNATURE 
Claimant’s Signature: ___________________________________________
Claimant’s Title: _______________________________________________ 
Date of Signature: ______________________________________________ 
NOTE: This form is to be used by a party who applies for a progress payment when the progress check has not yet cleared the bank. This release only becomes effective when the check, properly endorsed, has cleared the bank.

13
Construction Management Services Agreement

    

EXHIBIT B
TO
AGREEMENT FOR CONTRACTOR SERVICES
SUBCONTRACTORS AND SUPPLIER’S CONDITIONAL WAIVER AND RELEASE
UPON FINAL PAYMENT
FORM OF SUBCONTRACTORS AND SUPPLIER'S CERTIFIED STATEMENT
TO ACCOMPANY INVOICE
_____________________________ 
 CONDITIONAL WAIVER AND RELEASE ON 
FINAL PAYMENT 
NOTICE: THIS DOCUMENT WAIVES THE CLAIMANT’S LIEN, STOP PAYMENT NOTICE, AND PAYMENT BOND RIGHTS EFFECTIVE ON RECEIPT OF PAYMENT. A PERSON SHOULD NOT RELY ON THIS DOCUMENT UNLESS SATISFIED THAT THE CLAIMANT HAS RECEIVED PAYMENT. 
Identifying Information: 
Name of Claimant:________________________________________________________________________
Name of Customer:_______________________________________________________________________
Job Location:____________________________________________________________________________
Owner:_________________________________________________________________________________
Conditional Waiver and Release 
This document waives and releases lien, stop payment notice, and payment bond rights the claimant has for labor and service provided, and equipment and material delivered, to the customer on this job. Rights based upon labor or service provided, or equipment or material delivered, pursuant to a written change order that has been fully executed by the parties prior to the date that this document is signed by the claimant, are waived and released by this document, unless listed as an Exception below. This document is effective only on the claimant’s receipt of payment from the financial institution on which the following check is drawn: 
Maker of Check:______________________________________________________________________
Amount of Check$____________________________________________________________________
Check Payable to: ____________________________________________________________________
Exceptions 
This document does not affect any of the following: 
Disputed claims for extras in the amount of: $__________________________________________
SIGNATURE 
Claimant’s Signature: _______________________________________________ 
Claimant’s Title: _______________________________________________ 
Date of Signature: _______________________________________________ 
NOTE: This release is not effective until the check that constitutes final payment has been properly endorsed and has cleared the bank.

14
Construction Management Services Agreement

    

EXHIBIT C
LIST OF SUPPLIERS AND SUBCONTRACTORS
The following is a list of all suppliers and subcontractors whose materials and services will be or have been utilized by Contractor in the performance of the Work or as described in the Invoice, together with a description of the materials and services provided by such suppliers and subcontractors in connection with the Work or during the Invoice Period, and the price charged by such suppliers and subcontractors for such materials and services.  If necessary, this list will be continued on an additional sheet.  If this list is being submitted with an Invoice, attach a copy of each invoice submitted by the following suppliers and subcontractors representing all of the materials and services that Contractor has provided during the Invoice Period.
Material or Services
Name and Address                    Provided and Price Charged
1.                                                    
                                                    
                                                    

2.                                                    
                                                    
                                                    

3.                                                    
                                                    
                                                    

4.                                                    
                                                    
                                                    

5.                                                    
                                                    
                                                    

6.                                                    
                                                    
                                                    
	
		
	Invoice Period:
_____________________________________________, 20     to
_____________________________________________, 20__

	__________________________________________________, a
____________________________________________________
By:__________________________________________________
Its:__________________________________________________
"Subcontractor"

15
Construction Management Services Agreement

    

EXHIBIT D
TO
AGREEMENT FOR CONTRACTOR SERVICES

CHANGE ORDER REQUEST
 
FROM:_____________________________        TO:_____________________________
_____________________________
_____________________________
_____________________________

Change Order No.: _____________________________
Previous Change Order Nos.: _____________________________
The following changes are to be made in the Contract between Owner and Contractor:
One original Contract Price was      $    
Net change by previous Change Order    $    
The Contract Price before this Change Order was    $    
The Contract Price will be (increased) (decreased)
(unchanged) by this Change Order    $    
The new Contract Price including this Change
Order will be ........................................................................................................................................    $    
The time for completion will be (increased) (decreased) (unchanged) by              days.
The Completion Date for the Work is (not extended) (extended to                 ).

	
		
	Owner:

By:  ________________________________________________

Owner’s Authorized Representative

Dated:____________________________
	Contractor:

By:  ______________________________________________

Its:  _______________________________________________

Dated:  ___________________________

	 
	 

16
Construction Management Services Agreement

    

EXHIBIT E
TO
AGREEMENT FOR CONTRACTOR SERVICES

ADDITIONAL REQUIRED INSURANCE

None.

17
Construction Management Services Agreement

    

APPENDIX 1
TO
AGREEMENT FOR CONTRACTOR SERVICES
SUPPLEMENTARY CONDITIONS

	
			
	Owner's Initials _________
	 
	Contractor Initials _________

    

APPENDIX 2
TO
AGREEMENT FOR CONTRACTOR SERVICES
STATE REQUIRED NOTICES AND/OR
DISCLOSURES

	
			
	Owner's Initials _________
	 
	Contractor Initials _________Exhibit

EXHIBIT 10.6

EXECUTION VERSION

PURCHASE AND SALE AGREEMENT
[Regency on the Green, North Richland Hills, Texas]

This PURCHASE AND SALE AGREEMENT (this "Contract") is made and entered as of the Effective Date (defined below) by and between AP WP GREEN REIT LLC, a Delaware limited liability company ("Seller"), and STEADFAST ASSET HOLDINGS, INC., a California corporation ("Purchaser").

For and in consideration of the mutual covenants and agreements contained in this Contract and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Purchaser and Seller agree as follows.  

		
	1.
	PURCHASE AND SALE.  Seller agrees to sell and convey to Purchaser, and Purchaser agrees to buy from Seller, the Property (defined below) for the consideration and upon and subject to the terms, provisions and conditions set forth below.  The "Property" means:

		
	(a)
	The land situated in Tarrant County, Texas, more particularly described in Exhibit A to this Contract (collectively the "Land"), together with (i) the improvements situated on the Land commonly known as Regency on the Green, North Richland Hills, Texas, and all other structures, fixtures, buildings and improvements situated on the Land (such buildings, structures, fixtures and improvements being herein called collectively the "Improvements"), (ii) any and all rights, titles, powers, privileges, easements, licenses, rights-of-way and interests appurtenant to the Land and the Improvements, (iii) all rights, titles, powers, privileges, licenses, easements, rights-of-way and interests, if any, of Seller, either at law or in equity, in possession or in expectancy, in and to any real estate lying in the streets, highways, roads, alleys, rights-of-way or sidewalks, open or proposed; in front of, above, over, under, through or adjoining the Land and in and to any strips or gores of real estate adjoining the Land, and (iv) all rights, titles, powers, privileges, interests, licenses, easements and rights-of-way appurtenant or incident to any of the foregoing, including, without limitation, any development rights, land use entitlements, air rights, water, water rights, riparian rights, and water stock relating to the Land but expressly excluding the rights to any minerals which are addressed below;

		
	(b)
	All equipment, fixtures, appliances, inventory and other personal property of whatever kind or character owned by Seller and attached to or installed or located on or in the Land or the Improvements, including, but not limited to, furniture, furnishings, drapes and floor coverings, office equipment and supplies, heating, lighting, refrigeration, plumbing, ventilating, incinerating, cooking, laundry, communication, electrical, dishwashing, and air conditioning equipment, disposals, window screens, storm windows, recreational equipment, pool equipment, patio furniture, sprinklers, hoses, tools and lawn equipment (the "Personal Property", with all of the material Personal Property as of the date hereof being listed on Schedule 1 attached hereto);

		
	(c)
	All of Seller's right, title and interest in and to all agreements, leases and other agreements which relate to or affect the Land, the Improvements, the Personal Property or the operation thereof, including, without limitation, tenant leases ("Tenant Leases") and all refundable deposits actually paid to or received by Seller in connection therewith (and not as of the Closing Date returned to or forfeited by tenants under Tenant Leases), subject to Section 6(f) below, service and maintenance contracts ("Service Contracts", with all of the Service Contracts in effect as of the date hereof being listed on Schedule 2 attached hereto), warranties, guaranties and bonds, but only to the extent that such Service Contracts, warranties, guaranties and bonds are assignable by Seller without any necessary third party consent, or to the extent that all necessary third party consents to such assignments have been obtained (provided that Seller shall not be obligated to obtain such third party consents but hereby agrees to use commercially reasonable efforts to do so); and

		
	(d)
	All of Seller's right, title and interest, if any, in and to all trademarks, trade names or symbols under which the Land or the Improvements (or any part thereof) is operated (the "Trade Name") including, without limitation, any right to the name "Regency on the Green" or derivatives thereof, websites, web domains and internet addresses, all phone number(s) for the Improvements, all fax number(s) for the Improvements and logos and all other intangible property relating to the Property, including licenses, permits, certificates of occupancy and governmental approvals, and transferable construction warranties relating to the Property (the "Intangible Property").

Seller has advised Purchaser that by a separate Mineral Severance Agreements dated December 29, 2010 (collectively the "Mineral Severance Agreements"), Seller has agreed to sever and convey to Western Rim Investors 1997-2, LP the Mineral Rights Interest (as therein defined) upon payment of the Existing Financing (as therein defined).  The Existing Financing will be discharged at Closing (as hereinafter defined) and therefore Seller shall convey the Mineral Rights Interest immediately prior to the conveyance of the Property to Purchaser.  Purchaser acknowledges and agrees the Mineral Rights Interest are not included with the Property and will not be conveyed to Purchaser.
		
	2.
	PARALLEL AGREEMENTS.  A separate affiliate of Seller and Purchaser have entered into four additional separate Purchase and Sale Agreements as of the Effective Date (collectively, the "Parallel Agreements" and each, a "Parallel Agreement") relating to the sale of certain real and personal property commonly known as:  Regency at North Richland Hills in North Richland Hills, Texas ("North Hills"), Regency by the Vineyard in Euless, Texas ("Vineyard"), Foundations by the Vineyard in Euless, Texas ("Foundation"), and Regency by the Lake in Coppell, Texas ("Lake").   The Parallel Agreements for North Hills and Lake and this Contract are collectively referenced as the "Tranche A Contracts".  The Parallel Agreements for Vineyard and Foundation are collectively referenced as the "Tranche B Contracts" Seller and Purchaser agree as follows with regard to the Parallel Agreements:

	
		
	Purchase and Sale Agreement
15233083_2
	2

		
	(a)
	Notwithstanding anything to the contrary contained in this Contract, Purchaser shall have no right to purchase the Property and Seller shall be under no obligation to sell the Property unless the (i) Closings for all the Tranche A Contracts occurs simultaneously, (ii) if the Closing of the Tranche B Contracts does not occur simultaneously with the Closing of the Tranche A Contract, the Additional Extension Deposit (as defined in each Tranche B Contract) is deposited on or before the Closing of the Tranche A Contracts; it being understood and agreed the foregoing conditions precedent to Closing shall be for the sole benefit of Seller and may be waived or enforced by Seller in its sole and absolute discretion.

		
	(b)
	If any Parallel Agreement is terminated for any reason (other than as may be expressly provided in Section 16 or Section 17(a) of such Parallel Agreement), this Contract shall terminate automatically and neither party shall have any rights or obligations other than those which expressly survive the termination of this Contract.  Upon the termination of this Contract due to the termination of any Parallel Agreement, the disposition of the Earnest Money under this Contract shall be made in the same manner as the disposition under the Parallel Agreement (i.e., if Seller is entitled to the Earnest Money under the Parallel Agreement, then Seller shall also be entitled to the Earnest Money under this Contract, and if Purchaser is entitled to the Earnest Money under the Parallel Agreement, then Purchaser shall also be entitled to the Earnest Money under this Contract.

		
	(c)
	Any default under any Parallel Agreement (after any applicable notice or cure period expressly provided in such Parallel Agreement) shall constitute a default hereunder for which no additional notice or cure period shall be provided. 

		
	3.
	CONTRACT SALES PRICE.  The total purchase price for the Property (the "Sales Price") shall be $32,600,000.00 payable in cash at Closing (defined below).  Payment in cash shall mean wire transfer of immediately available federal funds ("Immediately Available Funds").  

		
	4.
	EARNEST MONEY.  Not later than two Business Days after the Effective Date, Purchaser shall deliver to First American Title Insurance Company, 633 Third Avenue, 16th Floor, New York, New York 10017, attention Phil Salomon, phone: 212-551-9437, fax: 212-331-1559, E-mail: psalomon@firstam.com, the "Title Company"), as escrow agent, $326,000.00 (by wire transfer of Immediately Available Funds), as earnest money ("Initial Earnest Money").  Unless Purchaser has elected to terminate this Contract, then not later than one Business Day after the expiration of the Feasibility Period (defined below), Purchaser shall deliver to Title Company an additional amount equal to $326,000.00 (by Immediately Available Funds) as additional earnest money ("Additional Earnest Money").  Notwithstanding anything to the contrary in this Contract, upon deposit by Purchaser, the amount of $100,000.00 of the Initial Earnest shall be nonrefundable (the "Nonrefundable Deposit"), except as expressly provided in this Agreement.  The Initial Earnest Money and the Additional Earnest Money, to the extent delivered by Purchaser, and, if and when made, the Extension Deposit (defined below) together with any interest earned on any of the foregoing, are collectively referred to as the "Earnest Money."  If Purchaser does not timely deliver the Initial Earnest Money as provided in this Section 4, this Contract shall be null and void, and neither party shall have any right or obligation hereunder.  If Purchaser does not timely deliver the Additional Earnest Money as provided in this Section 4 and Purchaser has not otherwise terminated this Contract in accordance with its terms prior to the expiration of the Feasibility Period, such failure shall constitute a default by Purchaser under this Contract.  The Earnest Money shall be invested in an interest-bearing account at one or more federally insured national banking institutions reasonably 

	
		
	Purchase and Sale Agreement
15233083_2
	3

approved by Purchaser, provided Purchaser satisfies the Title Company's requirements with respect thereto.  In the event the transaction contemplated by this Contract is closed, at Purchaser's option, the Earnest Money will be either applied in payment of the Sales Price to be paid at Closing or refunded to Purchaser.  In the event the transaction is not closed, the Earnest Money shall be disbursed in accordance with the provisions of this Contract.
		
	5.
	CLOSING.

		
	(a)
	Closing Date.  The closing of the sale of the Property to Purchaser (the "Closing") shall take place at the Title Company on August 26, 2015 (the "Closing Date").  The parties may effect the Closing by making their Closing deliveries into escrow with Title Company pursuant to escrow instructions that do not conflict with the terms of this Contract. 

Notwithstanding anything herein to the contrary, the following shall be conditions precedent to Closing for the benefit of the party noted therein:
		
	(1)
	As a condition precedent for the sole benefit of Purchaser, the Title Company shall have irrevocably committed to Purchaser in writing to issue a Texas T-1 owner’s policy of title insurance together with a T19.1 endorsement (and the Title Company must have committed prior to the expiration of the Feasibility Period to issue such endorsement), all in form and content approved (or deemed approved) by Purchaser pursuant to Section 7 ("Owner's Title Policy"), insuring Purchaser’s fee simple title to the Land and Improvements in an amount equal to the Sales Price subject only to the Permitted Exceptions (as hereinafter defined) and subject to no conditions other than payment of the applicable premium therefor.

		
	(2)
	As a condition precedent for the benefit of both parties, there shall exist no pending or threatened actions, suits, arbitrations, claims, attachments, proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization or other proceedings, against the other party that would materially and adversely affect such party’s ability to perform its obligations under this Contract.

		
	(3)
	As a condition precedent for the sole benefit of Seller, the conditions precedent described in Section 2 shall be satisfied.

		
	(4)
	As a condition precedent for the sole benefit of Purchaser, there shall exist no default under the Parallel Agreements by the seller thereunder that has not been previously waived by the purchaser thereunder.

Any of the foregoing conditions precedent may be waived in writing by the party for whose benefit the conditions have been included, in such party’s sole and absolute discretion.  If this Contract is terminated by Seller as a result of a failure of any of the foregoing conditions for its benefit, then the Earnest Money shall be delivered to Seller.  If this Contract is terminated by Purchaser as a result of a failure of any of the foregoing conditions for its benefit, then the Earnest Money (less the Nonrefundable Deposit) shall be delivered to Purchaser.

	
		
	Purchase and Sale Agreement
15233083_2
	4

		
	(b)
	Seller's Closing Deliveries.  At the Closing, Seller will deliver to Purchaser, at Seller's sole cost and expense (except as otherwise provided in this Contract), the following with regard to the applicable property owned by Seller:

		
	(i)
	a special warranty deed (the "Deed") duly executed and acknowledged by Seller, in the form attached as Exhibit B, subject only to any and all Permitted Exceptions (defined below) and any other matters approved by Purchaser in writing;

		
	(ii)
	a Bill of Sale duly executed by Seller, in the form attached as Exhibit C;

		
	(iii)
	an Assignment and Assumption Agreement (the "Assignment and Assumption Agreement") duly executed by Seller, in the form attached as Exhibit D;

		
	(iv)
	an Assignment of Tenant Leases and Assumption (the "Assignment of Leases") duly executed by Seller, in the form attached as Exhibit E;

		
	(v)
	possession of the Property, subject only to the Tenant Leases and the Permitted Exceptions;

		
	(vi)
	a non-foreign affidavit as permitted by Section 1445 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder;

		
	(vii)
	evidence reasonably acceptable to the Title Company of its capacity and authority for the closing of this transaction;

		
	(viii)
	a form of notice to all tenants of the Property ("Tenant Notice Letter") duly executed by Seller, in the form attached as Exhibit F;

		
	(ix)
	evidence reasonably satisfactory to Purchaser that all units vacant five or more days before the Closing Date are in rent-ready condition on the Closing Date; 

		
	(x)
	an owner's affidavit in substantially the form attached hereto as Exhibit G;

		
	(xi)
	an updated Rent Roll (as hereinafter defined), in the same form and with the same categories of information as on the initial Rent Roll (being the same Rent Roll that Seller utilizes in the ordinary course of business with respect to the Property on the date of such preparation), with all information concerning the Tenant Leases updated through the day not more than two (2) Business Days preceding the Closing;

		
	(xii)
	evidence of termination of any existing management or leasing agreement(s) relating to the Property; and

		
	(xiii)
	such other documents as may be reasonably required to close this transaction, duly executed, including the final closing statement in accordance with subsection (e) below.

	
		
	Purchase and Sale Agreement
15233083_2
	5

		
	(c)
	Purchaser's Closing Deliveries.  At the Closing, Purchaser shall perform and deliver, at Purchaser's sole cost and expense, the following:

		
	(i)
	the Sales Price in Immediately Available Funds (reduced by the amount, if any, of the Earnest Money applied for that purpose and by any other amounts to be credited to Purchaser at the Closing pursuant to the provisions of this Contract);

		
	(ii)
	the Assignment and Assumption Agreement duly executed by Purchaser; 

		
	(iii)
	the Assignment of Leases duly executed by Purchaser;

		
	(iv)
	the Tenant Notice Letter duly executed by Purchaser;

		
	(v)
	evidence reasonably acceptable to the Title Company of its capacity and authority; and

		
	(vi)
	such other documents as may be reasonably required to close this transaction, duly executed, including the final closing statement in accordance with subsection (e) below.

		
	(d)
	Close of Escrow.  Provided the Title Company has not received from Seller or Purchaser any written termination notice (or if such a notice has been previously received, provided that the Title Company has received from such party a withdrawal of such notice), when Purchaser and Seller have delivered the documents required by Sections 5(b) and 5(c), the Title Company shall, subject to and in accordance with the escrow instructions of each party and the written authorization (which may be via email) from each party (or its counsel) to proceed:

		
	(i)
	If applicable and when required, file with the Internal Revenue Service (with copies to Purchaser and Seller) the reporting statement required under Section 6045(e) of the Internal Revenue Code; 

		
	(ii)
	Unless specifically instructed by the parties to be dated prior to the Closing Date, insert the applicable Closing Date as the date of any document delivered to the Title Company undated, and assemble counterparts into single instruments;

		
	(iii)
	Disburse to Seller, by wire transfer to Seller of Immediately Available Funds, in accordance with wiring instructions to be obtained by the Title Company from Seller, all sums to be received by Seller from Purchaser at Closing, including the Sales Price as adjusted in accordance with the provisions of this Contract;

		
	(iv)
	Deliver the Deed to Purchaser by causing same to be recorded in the real property records of Tarrant County, Texas, and obtain conformed copies of the recorded Deed for delivery to Purchaser and to Seller following recording;

	
		
	Purchase and Sale Agreement
15233083_2
	6

		
	(v)
	Issue to Purchaser, promptly and in due course after Closing, the Owner's Title Policy, in the full amount of the Sales Price, dated as of recordation of the Deed, insuring Purchaser's fee simple title to the Land and Improvements to be good and indefeasible subject only to Permitted Exceptions and other matters approved by Purchaser in writing, and the standard printed exceptions; provided, however:

		
	(1)
	the standard exception as to restrictive covenants shall either be deleted or except only for any restrictive covenants that are Permitted Exceptions;

		
	(2)
	the exception as to standby fees and taxes shall be limited to standby fees and taxes for the year of Closing  and subsequent years, and subsequent assessments for prior years due to changes in land usage or ownership; and

		
	(3)
	the rights of parties in possession shall be limited only to the rights of tenants as residential tenants only;

		
	(vi)
	Deliver to Seller, in addition to Seller's Closing proceeds, all documents deposited with the Title Company for delivery to Seller at the Closing; 

		
	(vii)
	Deliver to Purchaser (i) all documents deposited with the Title Company for delivery to Purchaser at the Closing and (ii) any funds deposited by Purchaser in excess of the amount required to be paid by Purchaser pursuant to this Contract; and

		
	(viii)
	To the extent in Seller's possession or control deliver to Purchaser (at the Property) any plans and specifications regarding the Improvements.

		
	(e)
	Closing Statements.  At least two (2) Business Days prior to the Closing Date, the Title Company shall deliver to Seller and Purchaser draft closing statements in the standard form in use in the State of Texas, which describe the prorations and adjustments required by this Contract.  Seller and Purchaser shall promptly work in good faith to reasonably agree on the final closing statements to be executed and deposited at Closing with the Title Company.

		
	(f)
	Closing Costs.  Seller shall pay: the premium for the base form of Owner's Title Policy; one-half of any escrow fee; costs of tax certificates; fees for preparation of the conveyance documentation; Seller's attorneys' fees; any fee for the Commitment; and other expenses stipulated to be paid by Seller under other provisions of this Contract.  Purchaser shall pay: one-half of any escrow fee; the premium for the area and boundary deletion (if any) and the costs of any endorsements to the Owner's Title Policy, including, without limitation, the T19.1 endorsement; any costs of any mortgagee policy of title insurance; the cost of the Survey set forth in Section 7(a); Purchaser's attorneys' fees; recording fees; and other expenses stipulated to be paid by Purchaser under other provisions of this Contract.

	
		
	Purchase and Sale Agreement
15233083_2
	7

		
	(g)
	Proration of Assessments, Taxes, and Rents.  Assessments, current taxes, rents and maintenance fees and other income will be prorated as of the Closing Date; provided, however, no prorations will be made for delinquent rents or other charges under the Tenant Leases existing as of the Closing and provided further, however that within ninety (90) days after the Closing Date, all reimbursable utility bills for utility charges incurred by Seller and reimbursable to Seller from the tenants under the Tenant Leases for periods prior to Closing ("RUBS"), if received by Purchaser, shall be remitted by Purchaser to Seller but thereafter Purchaser shall have no obligation to remit RUBS income to Seller.  If ad valorem taxes for the year in which the sale is closed are not available on the Closing Date, proration of taxes will be made on the basis of (i) the assessed value of the Land and Improvements for the year of Closing, if known, or the assessed value of the Land and Improvements for the year before Closing, if such value is not known, multiplied by (ii) the tax rates for the year of Closing, if known, or the rates for the year before Closing, if not known, with a subsequent cash adjustment of such proration to be made between Seller and Purchaser, if necessary, when the actual tax bills are issued.  If any such charges, expenses, and income are unavailable at the precise Closing Date, then a readjustment of these items shall be made within 90 days after the Closing for all matters other than taxes, for which such period shall be 180 days after the Closing.  With respect to any delinquent rentals or other amounts under the Tenant Leases, Purchaser will make a reasonable attempt (but shall not be obligated) to collect the same for Seller's benefit after the Closing in the usual course of the operation of the Property and such collection, if any, will be remitted as provided in this Section 5(g).  Nothing contained herein shall operate (1) to require Purchaser to institute any lawsuit or other collection procedure to collect such delinquent amounts or (2) until the date that is sixty-one (61) days after the Closing Date, to permit Seller to pursue any such collection against any tenant that remains in occupancy at the Property; provided however in exercising its remedies against tenants as outlined in this sentence, Seller shall not seek or threaten to evict any tenant of the Property or to terminate any lease of such tenant.  Any sums received by Purchaser or Seller from any tenants owing delinquent rentals or other amounts will first be applied to the then-current portion of such tenant's obligation and then to delinquent amounts owed with respect to the period before Closing; and, accordingly, each party shall promptly remit to the other the amounts to which it is entitled in this sentence (after deduction of reasonable, actual out-of-pocket expenses incurred in connection therewith).  Purchaser agrees to pay or reimburse any third party finder's fees, commissions and the like payable with respect to any Tenant Leases that are executed after the expiration of the Feasibility Period and prior to the Closing Date.  For avoidance of any doubt, any finder's fees, commissions and the like payable to Seller's property manager are expressly excluded from and shall not be paid or reimbursed by Purchaser pursuant to the immediately preceding sentence.  At the Closing, Seller will pay to Purchaser in cash the amount of any refundable security deposits actually paid to or received by Seller under the Tenant Leases (and not as of the Closing Date returned to or forfeited by tenants under Tenant Leases) and any prepaid rentals actually paid to or received by Seller for periods subsequent to the Closing; provided, however, upfront cable premiums, non-refundable payments, deposits, or fees collected by Seller shall not be prorated.  In making the prorations required by this Section 5, the economic burdens and benefits of ownership of the Property for the Closing Date shall be allocated to Purchaser.  The provisions of this Section 5(g) shall survive the Closing.

	
		
	Purchase and Sale Agreement
15233083_2
	8

		
	(h)
	Proration of Utilities.  Utilities and other customarily prorated expenses, including but not limited to water, sewer, gas, electricity, trash removal and fire protection service, and any Service Contracts (other than management or leasing contracts (subject to the obligation of Purchaser to pay finder's fees and commissions as expressly provided in Section 5(g)), to the extent paid for by Seller or required to be paid for by Seller for a period after Closing, will be prorated as of the Closing Date.  Other expenses relating to the Property up to the Closing Date and all periods prior thereto, including without limitation, all operating expenses, costs under Service Contracts, costs incurred or ordered by Seller or Seller's agents that are not to be transferred, and insurance and administrative expenses, will be paid for by Seller; it being understood and agreed that Purchaser shall not be liable therefor.  Seller will not assign to Purchaser, and Purchaser will not be entitled to, any deposits held by any utility company or other company servicing the Property; but rather such deposits will be returned to Seller and Purchaser will arrange and bear all responsibility to arrange with all utility companies to have accounts styled in Purchaser's name beginning on the Closing Date.  The provisions of this Section 5(h) shall survive the Closing. 

		
	(i)
	At Closing, if required, Seller and Purchaser shall execute and acknowledge the notice required by Section 13.257 of the Texas Water Code. 

		
	(j)
	At Closing, if required, Seller and Purchaser shall execute and acknowledge the appropriate notice required by Section 49.452 of the Texas Water Code.

		
	6.
	FEASIBILITY STUDY, INSPECTION, AND SERVICE CONTRACTS.

		
	(a)
	Feasibility Study.  Purchaser is granted a license to enter upon the Property to conduct such nondestructive engineering and/or market and economic feasibility studies of the Property and a physical inspection of the Property, including studies or inspections to determine the existence of any environmental hazards or conditions as Purchaser deems necessary or advisable and for reviewing and copying those of the Submission Matters noted as to be provided on-site (collectively, the "Feasibility Study") during the period (the "Feasibility Period"), which commenced on June 15, 2015) under the terms of that certain Access and Due Diligence Agreement between the parties (the "Access Agreement")) and ending at 5:00 p.m., Central Time, on July 30, 2015.  If this Contract remains in effect after expiration of the Feasibility Period, then Purchaser may continue the Feasibility Study until Closing.  With Seller's permission, after Seller has received at least two full Business Days advance written notice of the intended date of entry (which request may be via email without requirement for additional form of delivery and which permission, unless promptly denied in writing, shall be deemed granted), Purchaser or its designated agents may enter upon the Property during normal business hours for purposes of analysis or other tests and inspections which may be deemed necessary by Purchaser for the Feasibility Study. Purchaser must be accompanied by Seller's manager for the Property or another designated representative of Seller (Jamie Solesbee), or have received Seller's written permission prior to entering upon the Property in connection with Purchaser's Feasibility Study; provided, however, Purchaser may not enter into any space leased by any tenant without being accompanied by Seller's manager for the Property or another designated representative of Seller (Jamie Solesbee).  Seller agrees to make its manager or other representative reasonably available during normal business hours.  Purchaser will not conduct physical or invasive testing or testing involving sampling (including, without limitation, any environmental testing other than a Phase I study) without notifying Seller of its requested tests, and obtaining the written consent of Seller.  Before conducting any test or investigation involving physical disturbance, sampling 

	
		
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or invasive testing of any portion of the Property, Purchaser shall provide Seller with a reasonably detailed testing plan outlining the tests Purchaser intends to perform. No such tests shall be conducted without Seller’s prior written approval of the testing plan and the specific test or investigation, which approval may be via email from Seller’s designated representative without requirement for additional form of delivery of notice.  Purchaser will exercise commercially reasonable efforts to conduct or cause to be conducted all inspections and tests in a manner and at times that will not unreasonably interfere with any tenant's use and occupancy of the Property.  Purchaser shall comply with all federal, state and local laws, rules, regulations and ordinances which might in any way relate to the Feasibility Study.  If Purchaser determines, in its sole judgment, that the Property is not suitable for any reason for Purchaser's intended use or purpose, is not in satisfactory condition, or that Purchaser otherwise no longer desires to purchase the Property, then Purchaser may terminate this Contract by written notice to Seller prior to expiration of the Feasibility Period, in which case the Earnest Money (other than the Nonrefundable Deposit which will be paid to Seller) will be promptly returned to Purchaser, and neither party shall have any further right or obligation hereunder other than as set forth herein with respect to rights or obligations which survive termination.  If this Contract is not terminated in the manner and within the time provided in this Section 6(a), Purchaser's right to terminate this Contract pursuant to this Section 6(a) and any and all objections with respect to the Feasibility Study will be deemed to have been waived by Purchaser for all purposes.  The Feasibility Study will be at Purchaser's expense.
		
	(b)
	Restoration of Property.  Purchaser will, at its own expense, promptly repair any damage to the Property relating to or caused by the tests and inspections performed by Purchaser or any Purchaser Representative (defined below) under this Contract or the Access Agreement, free of any mechanic's or materialman's liens or other encumbrances arising out of any of the inspections or tests.  Neither Purchaser nor any Purchaser Representative shall damage any part of the Property or any personal property owned or held by any tenant or third party.  The obligations under this subparagraph shall survive for (a) three (3) months following any termination of this Contract with respect to any claim of Seller unrelated to a claim of a third party unaffiliated with Seller or Seller’s property manager, and (b) the applicable statute of limitations with respect to any claim of Seller relating to a claim made by a third party unaffiliated with Seller or Seller’s property manager; provided however that if Seller shall have provided written notice to Purchaser with reasonable detail of a specified claim for which Purchaser is responsible hereunder within the period provided in subsection (a) or (b), as applicable, then such period shall be extended until such claim is resolved.

	
		
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	(c)
	Indemnity and Release.  Purchaser hereby indemnifies and holds Seller, Seller’s asset management company, Seller’s property management company, and their respective partners, shareholders, officers, members, directors, agents and employees (the "Seller Indemnified Parties") harmless from all claims, liabilities, damages, losses, costs, expenses (including, without limitation, court costs and reasonable attorneys’ fees but excluding punitive, special, consequential, or speculative damages), actions and causes of action arising out of or in any way relating to the Feasibility Study performed by Purchaser, its agents, independent contractors, and/or employees ("Purchaser Representatives"); provided, however, in no event shall Purchaser indemnify Seller or any Seller Indemnified Parties from any of the foregoing arising due to the negligence or fault of Seller or any Seller Indemnified Parties, or for existing conditions which are merely discovered by Purchaser or any the Purchaser’s Representatives.  Purchaser further waives and releases any claims, demands, damages, actions, causes of action or other remedies of any kind whatsoever against Seller for property damages or bodily and/or personal injuries to Purchaser, its agents, independent contractors, servants and/or employees arising out of the Feasibility Study or use in any manner of the Property other than Seller’s or its agents’, independent contractors’, and/or employees’ gross negligence or  willful misconduct or Seller’s breach of this Contract.  The provisions of this Section 6(c) shall survive the Closing or any termination of this Contract for (a) one (1) year following with respect to any claim of Seller unrelated to a claim of a third party unaffiliated with Seller or Seller’s property manager, and (b) the applicable statute of limitations with respect to any claim of Seller relating to a claim made by a third party unaffiliated with Seller or Seller’s property manager; provided however that if Seller shall have provided written notice to Purchaser with reasonable detail of a specified claim for which Purchaser is responsible hereunder within the period provided in subsection (a) or (b), as applicable, then such period shall be extended until such claim is resolved, and are not subject to any liquidated damage limitation on remedies, notwithstanding anything to the contrary in this Contract.

		
	(d)
	Required Insurance. Before and during the Feasibility Study, Purchaser and each Purchaser Representative conducting any Feasibility Study  shall maintain workers’ compensation insurance in accordance with applicable law, and Purchaser, or the applicable Purchaser Representative conducting any Feasibility Study, shall maintain (i) commercial general liability insurance with limits of at least $3,000,000.00 per event for bodily or personal injury or death, (ii) property damage insurance in the amount of at least One Million Dollars ($1,000,000.00), and (iii) as to Purchaser only (and not any of Purchaser’s Representatives) contractual liability insurance with respect to Purchaser’s obligations under Section 6(c). Purchaser shall deliver to Seller evidence of such workers’ compensation insurance and a certificate evidencing the commercial general liability, property damage and contractual liability insurance before conducting any Feasibility Study on the Property. Each such insurance policy shall be written by a reputable insurance company having a rating of at least "A+:VII" by Best’s Rating Guide (or a comparable rating by a successor rating service), and shall be licensed to issue insurance in Texas. Such insurance policies shall name as additional insureds Seller, Seller’s lender and Winthrop Management, the current property manager.

	
		
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	(e)
	Intentionally omitted.  

		
	(f)
	Service Contracts.  During the Feasibility Period, Purchaser shall review all Service Contracts provided by Seller.  Prior to the expiration of the Feasibility Period, Purchaser shall notify Seller in writing requesting termination of any or all of the terminable Service Contracts that Purchaser wishes to terminate (the "Terminated Service Contracts"); provided Purchaser will assume the obligations accruing and applicable to the period after the Closing Date under the Service Contracts which cannot be terminated by their terms  or that require the payment of any penalty or premium in order to be terminated at Closing ("Non-terminable Contracts").  Within one (1) Business Day following receipt of any notice from Purchaser to Seller designating the Terminated Service Contracts, Seller shall send termination notices to the service providers of the Terminated Service Contracts (with a copy to Purchaser).  Purchaser shall assume all Service Contracts other than the Terminated Service Contracts.  Any termination fees due with respect to the Terminated Service Contracts shall be payable by Purchaser. On or prior to Closing, Seller shall terminate the existing property management and leasing agreement with Winthrop Management which shall not be considered a Service Contract for purposes of this Contract.  For any Terminated Service Contracts where the delivery of the required notice results in the termination occurring after Closing, both Buyer and Seller shall instruct such service providers thereunder in writing that, effective as of the Closing Date, such service providers shall have no further rights to enter onto or access the Property for any purpose and shall not be obligated to deliver any services regardless of whether they are otherwise entitled to payment of their fees and other compensation under the applicable Terminated Service Contract after Closing.

		
	7.
	TITLE AND SURVEY REVIEW.

		
	(a)
	Title Review Period.  Seller has delivered to Purchaser and Purchaser acknowledges receipt of (i) the following Commitment for Title Insurance with copies of all recorded instruments affecting the applicable portion of the Property and recited as exceptions in the Commitment for Title Insurance:  Commitment No 3020-724461TX1 issued April 13, 2015 with regard Regency on the Green, North Richland Hills, Texas (the "Commitment") and (ii) a copy of the following: ALTA/ACSM Land Title Survey dated June 19, 2015 prepared by Marshall Lancaster TRPLS No 4873.  At Closing, Purchaser shall reimburse Seller for the actual out-of-pocket amount paid by Seller to the surveyor for the Survey in the amount of $15,500 and the Purchaser will bear any cost to modify or change the Survey to include any items beyond the survey requirements of FREDDIE MAC and FANNIE MAE.  If Purchaser has an objection to items disclosed in the Commitment or Survey, then Purchaser may give Seller written notice of its objections for a period of fifteen (15) days after the Effective Date but in no event later than five (5) days before the expiration of the Feasibility Period.  If Purchaser gives timely written notice of its objections, then Seller may, but has no obligation to (except as expressly provided herein), cure those objections for a period of two (2) Business Days from the date Seller receives Purchaser's notice ("Seller's Cure Period").  Seller shall utilize reasonable diligence to cure any errors in the Commitment, provided Seller has no obligation to expend any money, to incur any contractual or other obligations, or to institute any litigation in pursuing its efforts, other than to remove at Closing (i) financing liens of an ascertainable amount created by, through, or under Seller, (ii) any exceptions or encumbrances to title which are created by, under or through Seller after the date of the Commitment without Purchaser’s prior written consent, and (iii) any 

	
		
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objections that Seller has specifically agreed, in writing, to cure ("Mandatory Cure Matters").  If any objection is not satisfied during Seller's Cure Period, then Purchaser shall elect not later than two (2) Business Days after the expiration of Seller's Cure Period, but in any event no later than the expiration of the Feasibility Period, as its sole and exclusive remedy to either: (i) terminate this Contract, in which case the Earnest Money (other than the Nonrefundable Deposit which will be paid to Seller) shall be refunded to Purchaser, and neither party will have any further rights or obligations pursuant to this Contract, other than as set forth herein with respect to rights or obligations that survive termination; or (ii) waive the unsatisfied objection (which shall thereupon become a Permitted Exception) and proceed to Closing.  Any exception to title not objected to by Purchaser in the manner and within the time period specified in this Section 7(a) shall be deemed accepted by Purchaser.  The phrase "Permitted Exceptions" means those exceptions to title set forth in the Commitment or Survey and that have been accepted or deemed accepted by Purchaser, and that certain mineral deed in substantially the form attached hereto as Exhibit H.  Any endorsement or amendment to the Owner's Title Policy, including the T19.1 endorsement must be identified and agreed to between Purchaser and the Title Company, prior to the expiration of the Feasibility Period and otherwise any endorsement or amendment to the Owner's Title Policy will not be a condition precedent to Closing and all endorsements and amendments will be at the sole cost and expense of the Purchaser.
		
	(b)
	Encumbrances.  After the date of the Commitment, Seller will not intentionally or deliberately place on the Property any lien, encumbrance or other exception other than the Permitted Exceptions.  If prior to the Closing Date, title to the Property becomes subject to any lien, encumbrance or other exception other than the Permitted Exceptions, matters consented to in writing by Purchaser, or matters created by, through or under Purchaser, and Seller elects not to discharge such lien or encumbrance, then Purchaser will have the right to terminate this Contract by written notice to Seller whereupon the Earnest Money will be returned to Purchaser and Purchaser shall have its rights under Section 11(b) (to the extent applicable due to failure to remove any Mandatory Cure Matter or a breach of the first sentence of this subsection (b)), and neither party will have any right or obligation hereunder other than as set forth herein with respect to rights or obligations which survive termination.  If Purchaser fails to so terminate, then Purchaser will be deemed to waive the exception (which will thereupon become one of the Permitted Exceptions) and proceed to Closing. 

		
	8.
	SUBMISSION MATTERS.  

		
	(a)
	Submission Matters.  Seller has provided to Purchaser and Purchaser acknowledges receipt, whether by (i) delivery to Purchaser, (ii) availability at the Property, or (iii) availability on an electronic "war room" accessible to Purchaser, certain "Property Documents" described in the Access Agreement which for purposes of this Agreement shall be considered the "Submission Matters").  Purchaser and Seller both acknowledge Seller believes it has provided Purchaser what it believes to be the Submission Matters and, other than certain items previously requested, Purchaser is not aware of any additional Submission Matters for Seller to provide.  If Seller discovers additional items or information which should have been included in the Submission Matters, Seller shall promptly provide such Submission Matters to Purchaser.  If Purchaser has reason to believe there may be Submission Matters beyond those already provided by Seller, Purchaser shall make prompt request to Seller for such potential Submission Matters.

	
		
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	(b)
	Delivery, Accuracy and Reliance. Any failure of Seller to timely deliver or make available any of the Submission Matters will not extend the Feasibility Period beyond the period prescribed in Section 6(a) hereof, and Purchaser's sole and exclusive remedy on account of any such failure will be to terminate this Contract prior to the expiration of the Feasibility Period in accordance with the provisions of Section 6(a) and to receive the Earnest Money, excluding the Nonrefundable Deposit.  Except as expressly provided in this Contract or in the Closing Documents, Seller makes no representation or warranty, express or implied, as to the accuracy or completeness of the information contained in the Submission Matters.  Purchaser acknowledges that the Submission Matters will be provided for informational purposes only and shall not give Purchaser any cause of action against the person or entity preparing such reports, absent an agreement from such person or entity that Purchaser is entitled to rely on any such Submission Matters.

		
	9.
	BROKER'S FEE.  Purchaser and Seller represent and warrant to each other that no real estate commissions, finders' fees, or brokers' fees have been or will be incurred in connection with the sale of the Property by Seller to Purchaser other than a commission payable by Seller to CBRE ("Broker") pursuant to a separate written agreement between Seller and Broker.  Purchaser and Seller will indemnify, defend and hold each other harmless from any claim, liability, obligation, cost or expense (including attorneys' fees and expenses) for fees or commissions relating to Purchaser's purchase of the Property asserted against either party by any broker or other person (other than the Broker) claiming by, through or under the indemnifying party or whose claim is based on the indemnifying party's acts.  The provisions of this Section 9 shall survive the Closing or any termination of this Contract and are not subject to any liquidated damage limitation on remedies, notwithstanding anything to the contrary in this Contract.

		
	10.
	LIMITATION OF SELLER'S REPRESENTATIONS AND WARRANTIES.

		
	(a)
	AS IS.  Purchaser acknowledges that except for any express warranties and representations contained in Section 9 and Section 13 of this Contract, or in any instrument, document or agreement to be delivered by Seller to Purchaser at Closing, Purchaser is not relying on any written, oral, implied, or other representations, statements, or warranties by Seller or any agent of Seller or any real estate broker or salesman.  All previous written, oral, implied, or other statements, representations, warranties, or agreements, if any, are merged herein.  Except as expressly set forth in Section 9 and Section 13 of this Contract, Seller will not have any liability to Purchaser, and, effective as of Closing, Purchaser shall release Seller from any liability (including, without limitation, contractual and/or statutory actions for contribution or indemnity), for, concerning, or regarding: (i) the nature and condition of the Property, including, without limitation, the suitability thereof for any activity or use; (ii) any improvements or substances located thereon; or (iii) the compliance of the Property with any laws, rules, ordinances, or regulations of any government or other body.  EXCEPT AS EXPRESSLY PROVIDED IN SECTION 9 AND SECTION 13 OF THIS CONTRACT, SELLER HAS NOT MADE, DOES NOT MAKE, AND EXPRESSLY DISCLAIMS, ANY WARRANTIES, REPRESENTATIONS, COVENANTS OR GUARANTEES, EXPRESSED OR IMPLIED, OR ARISING BY OPERATION OF LAW, AS TO THE MERCHANTABILITY, HABITABILITY, QUANTITY, QUALITY, OR ENVIRONMENTAL CONDITION OF THE PROPERTY OR ITS SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR USE.  PURCHASER AFFIRMS THAT AS OF THE EXPIRATION OF THE FEASIBILITY PERIOD, IT WILL HAVE HAD ADEQUATE TIME TO: (i) INVESTIGATE AND INSPECT THE PROPERTY AND 

	
		
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BECOME FAMILIAR AND SATISFY ITSELF WITH THE PHYSICAL CONDITION OF THE PROPERTY; AND (ii) MAKE ITS OWN DETERMINATION AS TO THE MERCHANTABILITY, QUANTITY, QUALITY, AND CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE POSSIBLE PRESENCE OF TOXIC OR HAZARDOUS SUBSTANCES OR WASTE OR OTHER ENVIRONMENTAL CONTAMINATION AND THE PROPERTY'S SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR USE.  IN THE EVENT CLOSING OCCURS, PURCHASER HEREBY AGREES TO ACCEPT THE PROPERTY IN ITS PRESENT CONDITION (INCLUDING ENVIRONMENTAL CONDITIONS) ON AN "AS IS," "WHERE IS," AND "WITH ALL FAULTS" BASIS, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS CONTRACT OR ANY DOCUMENT DELIVERED BY SELLER AT CLOSING.  PURCHASER FURTHER ACKNOWLEDGES THAT WITHOUT THIS ACCEPTANCE, THIS SALE WOULD NOT BE MADE AND THAT SELLER DOES NOT HAVE, AND WILL NOT UNDER ANY CIRCUMSTANCES HAVE, ANY OBLIGATION WHATSOEVER TO UNDERTAKE ANY REPAIR, ALTERATION, REMEDIATION, OR OTHER WORK OF ANY KIND WITH RESPECT TO ANY PORTION OF THE PROPERTY.  IN THE EVENT CLOSING OCCURS, PURCHASER AND ITS SUCCESSORS AND ASSIGNS WILL HAVE, AND SHALL BE DEEMED TO HAVE, ASSUMED ALL RISK AND LIABILITY WITH RESPECT TO THE PRESENCE OF TOXIC OR HAZARDOUS SUBSTANCES OR WASTE OR OTHER ENVIRONMENTAL CONTAMINATION ON OR WITHIN OR UNDER THE SURFACE OF THE PROPERTY, WHETHER KNOWN OR UNKNOWN, APPARENT, NON APPARENT OR LATENT, AND WHETHER EXISTING BEFORE, AT, OR AFTER THE TRANSFER OF THE PROPERTY.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN SECTION 9 AND SECTION 13 OF THIS CONTRACT OR ANY DOCUMENT DELIVERED BY SELLER AT CLOSING, IN THE EVENT CLOSING OCCURS, PURCHASER AND ITS SUCCESSORS AND ASSIGNS WILL HAVE, AND SHALL BE DEEMED TO HAVE RELEASED SELLER OF AND FROM ANY AND ALL RESPONSIBILITY, LIABILITY, OBLIGATIONS, AND CLAIMS, KNOWN OR UNKNOWN, INCLUDING, WITHOUT LIMITATION, ANY OBLIGATION TO TAKE THE PROPERTY BACK OR REDUCE THE PRICE, OR ACTIONS FOR CONTRIBUTION OR INDEMNITY, THAT PURCHASER OR ITS SUCCESSORS AND ASSIGNS MAY HAVE AGAINST SELLER (OR THAT MAY ARISE IN THE FUTURE), BASED IN WHOLE OR IN PART UPON THE PRESENCE OF TOXIC OR HAZARDOUS SUBSTANCES OR WASTE OR OTHER ENVIRONMENTAL CONTAMINATION ON OR WITHIN OR UNDER THE SURFACE OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, ALL RESPONSIBILITY, LIABILITY, OBLIGATIONS, AND CLAIMS THAT MAY ARISE UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT, AS AMENDED 42 U.S.C. § 9601 ET SEQ., THE RESOURCE CONSERVATION AND RECOVERY ACT, AS AMENDED, 42 U.S.C. § 6901 ET SEQ., THE OIL POLLUTION ACT, 33 U.S.C. § 2701 ET SEQ. AND THE TEXAS SOLID WASTE DISPOSAL ACT TEX. HEALTH & SAFETY CODE ANN. § 361 ET SEQ. PURCHASER FURTHER ACKNOWLEDGES THAT THE PROVISIONS OF THIS DISCLAIMER AND RELEASE HAVE BEEN FULLY EXPLAINED TO PURCHASER AND THAT PURCHASER FULLY UNDERSTANDS AND ACCEPTS SAME.  THE PROVISIONS OF THIS DISCLAIMER AND RELEASE SURVIVE CLOSING.

	
		
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	(b)
	Construction Defects.  Except as otherwise specifically stated in this Contract, Purchaser agrees that Seller shall not be responsible or liable to Purchaser for any construction defects, errors or omissions or on account of any other construction-related conditions affecting the Property, as Purchaser is purchasing the Property AS IS, WHERE IS, and WITH ALL FAULTS.  Purchaser or anyone claiming by, through or under Purchaser, hereby fully releases Seller, its employees, officers, directors, representatives, attorneys and agents from any claim, cost, loss, liability, damage, expense, demand, action or cause of action arising from or related to any construction defects, errors or omissions or other construction-related conditions affecting the Property.  Purchaser further acknowledges and agrees that this release will be given full force and effect according to each of its expressed terms and provisions, including, but not limited to, those relating to unknown and suspected claims, damages and causes of action.  This waiver and release of claims shall survive the Closing.

		
	11.
	DEFAULT.  

		
	(a)
	Seller's Remedies.  If Purchaser fails to perform its obligations pursuant to this Contract at or prior to Closing for any reason except failure by Seller to perform hereunder, or if prior to Closing any one or more of Purchaser's representations or warranties are breached in any material respect, and this failure or breach is not cured within three (3) Business Days after written notice from Seller to Purchaser (other than failure to close for any reason unrelated to a default by Seller, for which there shall be no notice or cure period), then Seller, as its SOLE and EXCLUSIVE remedy (except as provided in Sections 6(c) and 9), may (i) terminate this Contract and receive the Earnest Money as liquidated damages and not as penalty, in full satisfaction of claims against Purchaser hereunder, or (ii) waive Purchaser’s failure or breach and proceed to Closing.  Seller and Purchaser agree that Seller's damages resulting from Purchaser's default are difficult, if not impossible, to determine, and the Earnest Money is a fair estimate of those damages and has been agreed to in an effort to cause the amount of damages to be certain.  Notwithstanding anything in this Section 11(a) to the contrary, in the event of Purchaser's default or termination of this Contract, Seller shall have all remedies available at law or in equity if Purchaser or any party related to or affiliated with Purchaser is asserting any claims or right to the Property that would otherwise delay or prevent Seller from having clear, indefeasible and marketable title to the Property other than as a result of Purchaser’s exercise of its remedies under subsection (b) hereof.  If Closing is consummated, then Seller shall have all remedies available at law or in equity if Purchaser fails to perform any post-closing obligation of Purchaser under this Contract.

		
	(b)
	Purchaser's Remedies.  If Seller fails to perform its obligations pursuant to this Contract for any reason except failure by Purchaser to perform hereunder, or if before Closing any one or more of Seller's representations or warranties are breached in any material respect, and this failure or breach is not cured within three (3) Business Days after written notice from Purchaser to Seller (other than failure to close for any reason unrelated to a default by Purchaser, for which there shall be no notice or cure period), then Purchaser may, as its SOLE and EXCLUSIVE remedy, either: (i) terminate this Contract by giving Seller timely written notice of its election before or at Closing and recover the Earnest Money and Purchaser’s Costs (defined below); (ii) enforce specific performance; or (iii) waive Seller's failure or breach and proceed to Closing.  If Purchaser enforces specific performance of this Contract by Seller, Purchaser agrees that Purchaser shall be required to provide evidence that it has available the entire Sales Price in immediately available funds or commitments from its lenders, and that Purchaser shall accept whatever title to the Property in the form 

	
		
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as of the date of the Commitment, subject to all liens, encumbrances and other matters affecting title to the Property (all of which shall be deemed Permitted Exceptions) without any reduction of the Sales Price, other than: (A) liens and encumbrances intentionally and deliberately placed by Seller on the Property after the date of the Commitment; (B) any liens granted by Seller under a deed of trust or other security instrument securing indebtedness of Seller; (C) unpaid taxes and special assessments for any years before the year of Closing; and (D) liens, encumbrances, and other matters that Seller is requested by Purchaser to cure or remove or bond against and that Seller expressly and unconditionally agrees in writing, in response to that request, to cure or remove or bond against (the matters described in items (A), (B), (C) and (D) are referred to herein as "Non-Permitted Liens"). In no event shall Seller be obligated to cure or remove or bond against any title defects, liens, encumbrances, or other matters affecting title, other than Non-Permitted Liens.  Notwithstanding anything herein to the contrary, Purchaser shall be deemed to have elected to terminate this Contract if Purchaser fails to deliver to Seller written notice of its intent to file a claim or assert a cause of action for specific performance against Seller on or before ten (10) Business Days following the scheduled Closing Date or, having given that notice, fails to file a lawsuit asserting the claim or cause of action in Tarrant County, Texas, within two (2) months following the scheduled Closing Date.  Unless Purchaser in good faith either (1) disputes an allegation of Purchaser's default and promptly files suit for declaratory judgment or (2) alleges a Seller default that continues after the notice and cure period set forth above and timely files suit for specific performance and the action is pending, Purchaser may not place a lis pendens against all or any portion of the Property, and Purchaser hereby waives and releases any right it may have under applicable law to file any lis pendens.  For purposes of this Contract, "Purchaser’s Costs" shall mean (1) the actual expenses incurred by Purchaser, not to exceed the aggregate sum of $75,000.00 paid or payable to (A) to Purchaser’s attorneys (including in-house attorneys) in connection with the negotiation of this Contract or the proposed purchase of the Property, (B) to third party consultants in connection with the performance of examinations, inspections and/or investigations of the Property or (C) to any potential lender in connection with any proposed financing of the Property, plus, (2) only in the event such Seller’s default or breach is an Intentional Default (as hereinafter defined) any non-refundable "rate lock" or "spread lock" deposits or fees paid not more than five (5) Business Days prior to the scheduled Closing Date in connection with any proposed financing of Purchaser (and with not less than 1 Business Day prior written notice thereof to Seller) not to exceed the aggregate sum of $456,400.  For purposes of this Contract, "Intentional Default" means any one or more of the following:  (A) fraud by Seller, or (B) Seller’s refusal to Close in accordance with the terms of this Contract, or (C) (1) a conveyance of the Property by Seller to another person or entity in violation of the terms of this Contract or (2) an intentional act of Seller that results in a monetary encumbrance or lien against the Property that Seller (x) does not bond or otherwise remove at or  prior to Closing, or (y) does not certify in writing to Purchaser that, to Seller’s Knowledge, (i) such lien was filed in bad faith, or (ii) results from work performed at the direction of a tenant or other third party, or (iii) is otherwise invalid or improper.  Purchaser's remedies shall be limited to those described in this Section 11(b).  The provisions of this Section 11(b) shall survive the Closing or any termination of this Contract.  If Closing is consummated, then Purchaser shall have the rights and remedies set forth in this Contract if Seller fails to perform any post-closing obligation of Seller under this Contract.
		
	(c)
	In no event or circumstance shall either party be entitled to any consequential or punitive damages.  

	
		
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	12.
	ATTORNEYS' FEES.  Any party to this Contract who is the prevailing party in any legal proceeding against the other party brought under or with respect to this Contract or transaction will be additionally entitled to recover court costs and reasonable attorneys' fees from the non-prevailing party.

		
	13.
	REPRESENTATIONS AND WARRANTIES OF SELLER.  Seller hereby represents and warrants to Purchaser, which representations and warranties will be deemed made by Seller to Purchaser as of the Effective Date and also as of the Closing Date, that:

		
	(a)
	Parties in Possession.  To Seller's Knowledge (defined below), (i) there are no parties in possession of any portion of the Property except Seller and tenants under Tenant Leases, and (ii) the copies of the Tenant Leases that have been made available to Purchaser are the same Tenant Leases that Seller utilizes in the ordinary course of business with respect to the Property as of the date hereof.

		
	(b)
	Authority; Capacity.  Seller has the partnership power and authority to sell and convey the Property as provided in this Contract and to carry out Seller's obligations hereunder, and that all requisite action necessary to authorize Seller to enter into this Contract and to carry out Seller's obligations hereunder has been taken.  The execution, delivery and performance of this Contract by Seller have been duly and validly authorized by all necessary action on the part of Seller and all required consents and approvals have been duly obtained.  There is no agreement to which Seller is a party or, to Seller’s knowledge, that is binding on Seller which is in conflict with this Contract.

		
	(c)
	Notice of Violation.  Except as attached hereto as Schedule 3, Seller has received no written notice (which remains uncured) claiming violation of any federal, state, county or municipal law, ordinance, order, regulation or requirement affecting any portion of the Land, Improvements or Personal Property.

		
	(d)
	Litigation.  There is no action, suit, proceeding or claim affecting Seller or the Land, Improvements or Personal Property or any portion thereof relating to or arising out of the ownership, operation, use or occupancy of the Property for which Seller has received service of process that is pending or being prosecuted in any court or by or before any federal, state, county or municipal department, commission, board, bureau or agency or other governmental instrumentality.

		
	(e)
	Condemnation.  Seller has not received any written notice of any pending condemnation or similar proceeding affecting the Land, Improvements or Personal Property or any portion thereof and to Seller’s Knowledge, no such proceeding is pending or has been threatened in writing by an authority with the ability to condemn.

		
	(f)
	Not a Foreign Person.  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.

		
	(g)
	No Terrorism.  Seller is not a person or entity described by Section 1 of the Executive Order (No. 13,224) Blocking Property and Prohibiting Transactions With Persons Who commit, Threaten to Commit, or Support Terrorism, 66 Fed. Reg. 49,079 (September 25, 2001), and does not engage in any dealings or transactions, and is not otherwise associated, with any of those persons or entities.

	
		
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	(h)
	Rent Roll.  The rent roll attached as Schedule 4 dated June 29, 2015 is the rent roll that Seller utilizes in the ordinary course of business with respect to the Property as of the date thereof ("Rent Roll").  

		
	(i)
	Mineral Severance Agreement.  Seller has provided to Purchaser true and correct copies of the Mineral Severance Agreement and any amendments or modifications thereto.

		
	14.
	LIMITATIONS ON LIABILITY.  

		
	(a)
	Seller's Knowledge.  As used in this Contract, "Seller's Knowledge" means the current actual knowledge of Pat Ragin, who is the asset manager of one of the equity owners of Seller, and Jamie Solesbee, who is the asset manager of one of the equity owners of Seller (collectively if one or more the "Seller Representative") without any investigation or inquiry and without regard to the knowledge of any former or other employees, agents or contractors of Seller.  The Seller Representative shall not have any personal liability whatsoever for the representations made herein or for any other matters relating to this Contract.  Purchaser acknowledges that the Seller Representative's current actual knowledge regarding the foregoing matters may be limited.

		
	(b)
	Survival Period.  Subject to the provisions of Section 14(c), and notwithstanding anything else to the contrary contained in this Contract, in any exhibits attached hereto, or in any documents executed or to be executed at Closing or otherwise in connection herewith (collectively, the "Purchase Documents"), all of Seller's representations, warranties, covenants, undertakings, indemnities, and agreements contained in any of the Purchase Documents (collectively, "Seller's Undertakings") shall survive the Closing for a period of nine (9) months (the "Survival Period").  Purchaser acknowledges that it is a sophisticated purchaser who is familiar with the ownership and operation of real estate projects similar to the Property and Purchaser and Seller have negotiated and agreed upon the length of the Survival Period as an adequate period of time for Purchaser to discover any and all facts that could give rise to a claim or cause of action for a breach of a representation.  Purchaser may bring an action against Seller on the breach of any Seller's Undertakings, but only if: (i) Purchaser first learns of the breach after Closing and files the action within the Survival Period and (ii) the damage to Purchaser on account of the breach (individually or when combined with damages from other breaches) equals or exceeds $30,000.00.  Furthermore, Purchaser agrees that Seller's liability, however and whenever arising, whether based on or through, directly or indirectly, in whole or in part, any breach of Seller's Undertakings, at law or in equity, or any other claim or basis arising under the Purchase Documents or with respect to the Property, at law or in equity, shall not exceed, in the aggregate, 1.25% of the Sales Price ("Liability Cap").  Purchaser agrees that, with respect to any alleged breach of Seller's Undertakings discovered after the Survival Period, the maximum liability of Seller for all alleged breaches is limited to $100.00.  The provisions of this Section 14(b) shall survive the Closing and, shall not apply to Seller’s obligations under Section 5(g), Section 5(h), or Section 9.

	
		
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	(c)
	Untrue Representation or Warranty.  If any representation or warranty above is known by Purchaser before Closing to be untrue ("Untrue Representation or Warranty") and is not remedied by Seller before Closing, Purchaser may, as Purchaser's sole and exclusive remedy, either: (i) terminate this Contract whereupon the Earnest Money shall be refunded to Purchaser and neither party shall have any further rights or obligations under this Contract, other than as set forth in this Contract regarding rights or obligations that survive termination, or (ii) waive its objections and close the transaction, and the Untrue Representation or Warranty shall not survive the Closing.

		
	15.
	COVENANTS OF SELLER.  From the Effective Date until Closing, Seller will (a) maintain the Property in its current state and condition, reasonable wear and tear and damage from casualty excepted, and otherwise manage and operate the Property in the ordinary course of business in accordance with Seller’s current management practices, (b) continue all insurance policies relative to the Property in full force and effect, (c) not remove any item of Personal Property from the Land or Improvements unless replaced by a comparable item of Personal Property, except for any dead landscaping, which Seller will have no obligation to replace, (d) perform, when due, all material obligations under any and all agreements relating to the Property and otherwise in accordance with applicable laws, ordinances, rules, and regulations, and (e) in the ordinary course of its operation of the Property, use commercially reasonable diligence to put all rental units of the Property that are vacated five or more days before Closing into a "rent ready" condition.  The Sales Price shall be credited in an amount equal to $500 for each such unit that is not put into rent ready condition.  There will not be any credit to the Sales Price for units vacated less than five days before Closing.  In addition to the foregoing, from the Effective Date until Closing, Seller will conduct its leasing activities in the normal course of its business and in accordance with Seller's usual and customary leasing guidelines for the Property; provided however that under no circumstances may Seller enter into new Tenant Leases that are for initial terms of less than 6 months or greater than 24 months.  Seller shall not amend, extend or enter into any contracts for goods and services affecting the Property without the approval of Purchaser, unless such contracts are terminable upon no more than thirty (30) days’ notice without payment of any penalty or fee or other payment.  Additionally, Seller shall promptly (1) notify Purchaser in writing of any litigation, arbitration, condemnation or administrative hearing before any court or governmental agency concerning Seller or the Property for which Seller receives service of process or written notice after the Effective Date, other than eviction or forcible entry and detainer actions in the ordinary course of operations and if requested in writing, Seller shall provide Purchaser a list of any pending eviction or forcible entry and detainer actions, (2) upon Purchaser's written request, provide to Purchaser an updated Rent Roll in the same form previously provided, (4) provide to Purchaser copies of all notices given or received by Seller after Effective Date asserting any breach or default under the Service Contracts, and (5) copies of all written communications given or received by Seller from a governmental or quasi-governmental authority after the Effective Date relating to any potential hazardous materials/substances affecting the Property.

	
		
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	16.
	CONDEMNATION.  If prior to the Closing Date condemnation proceedings are commenced against any portion of the Property, then Seller shall promptly notify Purchaser, and, if the condemnation affect a "material" portion of the Property, then at Purchaser’s option (to be exercised in writing not less than 20 days after receipt of Seller’s notice), this Contract will terminate and the Earnest Money (other than the Nonrefundable Deposit which will be paid to Seller) will be refunded to Purchaser and neither party will have any further rights or obligations pursuant to this Contract, other than as set forth herein with respect to rights or obligations which survive termination.  A "material portion of the Property" as used herein shall mean any taking that would reduce the value of the Property by more than $652,000, or would materially limit, restrict or impair access to or parking at the Property or the legal conforming status of the Property with applicable zoning laws.  If prior to the Closing Date condemnation proceedings are commenced against less than a material portion of the Property, then this Contract will not terminate, but at Closing Seller will assign to Purchaser any condemnation award and the Sales Price will not be reduced.  In the event Purchaser elects to terminate this Contract pursuant to this Section 16, Seller will have the option to terminate all the other Parallel Agreements.  In addition, if Purchaser pursuant to any of the other Parallel Agreements elects to terminate any Parallel Agreement as a result of condemnation as provided in such Parallel Agreement, Seller will have the option to terminate this Contract and upon such termination, the Earnest Money (other than the Nonrefundable Deposit which will be paid to Seller) will be refunded to Purchaser and neither party will have any further rights or obligations pursuant to this Contract, other than as set forth herein with respect to rights or obligations which survive termination. 

		
	17.
	DAMAGE TO PROPERTY.  Seller agrees to give Purchaser prompt notice of any fire or other casualty affecting the Land, the Improvements or the Personal Property between the Effective Date and the Closing.  Purchaser or its designated agents may enter upon the Property from time to time during normal business hours and upon advance notice to Seller in accordance with this Contract for the purpose of inspecting any such casualty.

		
	(a)
	Material Casualty.  If, before Closing, the Property is damaged by an insured fire or other casualty that (i) would cost $750,000.00 or more to repair or (ii) is not covered by Seller’s insurance and Seller is unwilling to agree to provide a credit against the Sales Price in the amount of the cost of such damage at Closing (a "Major Casualty"), then Purchaser may, at its option, elect to terminate this Contract by written notice to Seller within twenty (20) days after the date of Seller's notice to Purchaser of the casualty, in which case the Earnest Money (other than the Nonrefundable Deposit which will be paid to Seller) shall be refunded to Purchaser, and neither party shall have any further rights or obligations hereunder, other than as set forth herein with respect to rights and obligations that survive termination.  If necessary, the Closing Date shall be postponed until Seller has given the notice to Purchaser required by this Section 17(a) and the period of twenty (20) days described in this Section 17(a) has expired.  If the Closing Date of any Parallel Agreement is extended a result of casualty as provided in such Parallel Agreement, at the election of Seller, the Closing Date of this Contract will be extended to the same Closing Date of such extended Parallel Agreement.  If Purchaser does not timely make its election to terminate this Contract pursuant to this Section 17(a), then the Closing shall take place as provided herein, the Sales Price shall be reduced by an amount equal to Seller's deductible under its insurance policies and any proceeds of insurance previously received by Seller with respect thereto, and Seller shall assign to Purchaser at the Closing all of Seller's interest in and to any casualty insurance proceeds that may be payable to Seller on account of the occurrence (with its insurer’s 

	
		
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consent written thereto), including the proceeds of any business interruption or loss of rental insurance payable with respect to periods after the Closing Date.  In the event Purchaser elects to terminate this Contract pursuant to this Section 17(a), Seller will have the option to terminate all the other Parallel Agreements.  In addition, if Purchaser pursuant to any of the other Parallel Agreements elects to terminate any Parallel Agreement as a result of fire or casualty as provided in such Parallel Agreement, Seller will have the option to terminate this Contract and upon such termination, the Earnest Money (other than the Nonrefundable Deposit which will be paid to Seller) will be refunded to Purchaser and neither party will have any further rights or obligations pursuant to this Contract, other than as set forth herein with respect to rights or obligations which survive termination.
		
	(b)
	Immaterial Casualty.  If, before Closing, the Property is damaged by a fire or other casualty that is not a Major Casualty or is not covered by Seller’s insurance but Seller agrees to provide a credit against the Sales Price in the amount of the cost of such damage at Closing, then Purchaser may not terminate this Contract, and the Sales Price shall be reduced by an amount equal to Seller's deductible under its insurance policies and any proceeds of insurance previously received by Seller with respect thereto, and by the uninsured portion of the damage, and Seller shall assign to Purchaser at the Closing all of Seller's interest in and to any casualty insurance proceeds that may be payable to Seller on account of the occurrence (with its insurer’s consent written thereto), including the proceeds of any business interruption or loss of rental insurance payable with respect to periods after the Closing Date.

		
	(c)
	Amount of Damage.  Seller and Purchaser both agree to use the Seller's insurance adjuster's assessment to determine the amount of damages.

		
	(d)
	Controlling Provision.  The provisions of this Section 17 shall control, and be effective, notwithstanding the provisions of the Uniform Vendor and Purchaser Risk Act set forth in Section 5.007 of the Texas Property Code.

		
	18.
	REPRESENTATIONS AND WARRANTIES OF PURCHASER.  Purchaser represents and warrants to Seller, which representations and warranties shall be deemed made by Purchaser to Seller as of the Effective Date and also as of the Closing Date:

		
	(a)
	Authority.   Purchaser has the full right, power and authority to purchase the Property as provided in this Contract and to carry out Purchaser's obligations hereunder, and that all requisite action necessary to authorize Purchaser to enter into this Contract and to carry out Purchaser's obligations hereunder has been taken.  

		
	(b)
	No Terrorism.  Purchaser is not a person or entity described by Section 1 of the Executive Order (No. 13,224) Blocking Property and Prohibiting Transactions With Persons Who commit, Threaten to Commit, or Support Terrorism, 66 Fed. Reg. 49,079 (September 25, 2001), and to Purchaser's knowledge does not engage in any dealings or transactions, and is not otherwise associated, with any of those persons or entities.

Notwithstanding anything herein to the contrary, any breach by Purchaser of any of the foregoing representations or warranties shall constitute a default by Purchaser hereunder, and Seller may thereupon, at its option, terminate this Contract by giving written notice thereof, in which event the Earnest Money will be paid to Seller as liquidated damages, and neither Purchaser nor Seller shall have any further rights or liabilities hereunder, except as otherwise provided herein.  

	
		
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	19.
	ASSIGNMENT.  Purchaser may not assign this Contract without Seller's prior written consent, such consent to be given or denied in Seller's sole and absolute discretion.  Notwithstanding the foregoing, Purchaser may make a one-time assignment of this Contract to a title holding entity that is an affiliate of and controlled by Purchaser or Steadfast Apartment REIT, Inc. without Seller’s consent.  Purchaser must notify Seller not less than five (5) Business Days before the Closing of any proposed assignment (which assignment shall be effective as of the Closing Date).

		
	20.
	NONREFUNDABLE CONSIDERATION.  Contemporaneously with the execution and delivery of this Contract, Purchaser has delivered to Seller and Seller hereby acknowledges the receipt of a check in the amount of $100 ("Independent Contract Consideration"), which amount the parties bargained for and agreed to as consideration for Purchaser's exclusive right to inspect and purchase the Property pursuant to this Contract and for Seller's execution, delivery and performance of this Contract.  The Independent Contract Consideration is in addition to and independent of any other consideration or payment provided in this Contract, is nonrefundable, and it is fully earned and will be retained by Seller notwithstanding any other provision of this Contract.

		
	21.
	ANNOUNCEMENTS.  After Closing, Seller and Purchaser, or either of them, may announce this transaction and provide additional information relevant to the announcement; however, neither party may announce the economic terms of this transaction, and neither the name of Ares nor the name of Wood Partners shall be mentioned without the prior written consent of Seller which may be withheld in Seller's sole and absolute discretion, and the name Steadfast shall not be mentioned without the prior written consent of Purchaser which may be withheld in Purchaser’s sole and absolute discretion.  

		
	22.
	EFFECTIVE DATE.  The "Effective Date" of this Contract shall be the date an original of this Contract (or original counterparts of this Contract) are executed by both Seller and Purchaser.

		
	23.
	NOTICE TO TENANTS.  Within ten days after Closing, Purchaser shall deliver to each tenant of the Property a completed copy of the Tenant Notice Letter, providing an exact dollar amount of each tenant's security deposit.  Purchaser hereby assumes all liability for all such security deposits that are transferred from Seller to Purchaser regardless of whether notice is given to the tenants of the Property in accordance with the provisions of this Section 23.  Purchaser shall indemnify and defend Seller from and against all liability for such security deposits actually received by Purchaser (by credit against the Sales Price at Closing).  The provisions of this Section 23 shall survive the Closing.

		
	24.
	NOTICE REGARDING POSSIBLE ANNEXATION.  If the property that is the subject of this Contract is located outside the limits of a municipality, the property may now or later be included in the extraterritorial jurisdiction of a municipality and may now or later be subject to annexation by the municipality.  Each municipality maintains a map that depicts its boundaries and extraterritorial jurisdiction.  To determine if the property is located within a municipality's extraterritorial jurisdiction or is likely to be located within a municipality's extraterritorial jurisdiction, contact all municipalities located in the general proximity of the property for further information.

		
	25.
	WAIVER OF CONSUMER RIGHTS.  Purchaser, after consultation with an attorney of its own selection (which counsel was not directly or indirectly identified, suggested or selected by Seller or any agent of Seller) hereby voluntarily waives its rights under the Deceptive Trade Practices - Consumer Protection Act (Section 17.41, et seq., Business and Commerce Code), a law that gives consumers special rights and protections.  Purchaser hereby acknowledges to Seller that Purchaser and Seller are not in a significantly disparate bargaining position.

	
		
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	26.
	MUNICIPAL UTILITY DISTRICT NOTICE.  If the Property is situated within a utility district subject to the provisions of the Texas Water Code, then, at or prior to the Closing, Seller shall give Purchaser the written notice required by the Texas Water Code, and Purchaser shall sign and acknowledge the notice to evidence receipt thereof.

		
	27.
	CONFIDENTIALITY.  

		
	(a)
	Purchaser agrees that information gathered in connection with this Contract or the Access Agreement that is not generally known to the public (the "Confidential Information") shall be considered Confidential Information, and such Confidential Information shall be used by Purchaser and Purchaser Representative solely for the purpose of Purchaser’s evaluation of the evaluation of the economic, physical or environmental condition of the Property and/or the transaction contemplated under this Contract. Except as expressly  permitted in this Section 27(a), neither Purchaser nor any Purchaser Representative shall reveal, disclose, disseminate, publish or communicate to any other persons, parties or entities any Confidential Information, without the prior written consent of Seller, which shall be given or withheld in Seller’s sole discretion, other than to Purchaser’s partners, employees, affiliates, agents, consultants, attorneys, engineers, licensees, prospective investors, and prospective lenders (and their consultants, agents, and attorneys) involved in this transaction who have agreed to preserve the confidentiality of such information as required hereby (collectively, "Permitted Outside Parties"). Purchaser shall be responsible for ensuring that any and all Permitted Outside Parties (and any other person for whom Purchaser has responsibility hereunder) complies with the provisions of this Section 27(a).  Purchaser shall not divulge the contents of the Submission Materials or other Confidential Information except as required by law or in connection with a court order or other legal process.  In permitting Purchaser and the Permitted Outside Parties to review the Submission Materials or any other Confidential Information, Seller has not waived any privilege or claim of confidentiality with respect thereto, and no third party benefits or relationships of any kind, either express or implied, have been offered, intended or created. The provisions of this Section 27(a) shall survive the termination of this Contract.  Purchaser shall not contact any tenant, occupant, leasing agent or property manager (other than on-site personnel) of the Property regarding the Property.  Other than research of public records and databases, neither Purchaser nor any Purchaser Representative may communicate with any governmental authority or quasi-governmental authority or representative thereof (collectively "Governmental Authorities") concerning the Property; provided Purchaser and Purchaser's Representatives may contact Governmental Authorities solely with regard to the zoning, ad valorem tax assessments and other ad valorem tax matters, and compliance of the Property with licenses issued by any Governmental Authority, police and fire activity at the Property, and to request any outstanding citations or violations currently at issue with such Governmental Authorities; provided neither Purchaser nor any Purchaser Representative shall (a) request that any Governmental Authorities make any inspection of the Property regarding potential violations in the condition or operation of the Property which are not currently cited by such Governmental Authorities ("Potential Violations"), or (b) except as required by applicable law provide to any Governmental Authority any information received from other sources by Purchaser or such Purchaser Representative regarding any Potential Violation, or (c) make specific inquiry regarding or otherwise draw the attention of the Governmental Authority to a Potential Violation (provided, however, merely requesting information from the Governmental Authority regarding the existence of violations generally or the status of previously cited violations, without referencing any specific Potential 

	
		
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Violation shall not be prohibited hereby), all without the prior written approval of Seller.  Seller shall be provided an opportunity to attend any meeting with any Governmental Authorities regarding Potential Violations.
		
	(b)
	The provisions of this Section 27 shall survive the Closing of the termination of this Contract for a period of one year.

		
	28.
	MISCELLANEOUS.

(a)Notices.  All notices, demands, requests, and other communications required or permitted under this Contract must be in writing and must be (i) personally delivered, (ii) deposited with a nationally recognized overnight courier for next Business Day delivery, charges prepaid, addressed to the addressee as set forth below, or (iii) sent by fax or email to the addressee's fax number or email address as set forth below (with additional copy sent by overnight courier).  These communications will be deemed to be delivered when actually received by fax or personal delivery or, if earlier and regardless whether actually received or not, upon deposit with the overnight courier as set forth above.  Each party's address is as follows:
	
		
	If to Seller:
	c/o Wood Partners
3715 Northside Pkwy NW, Suite 4-600
Atlanta GA 30327
Attention:  Curtis W. Walker
Phone: (404) 965-9947
Fax: (770) 984-9375
Email: curtisw@woodpartners.com

	With a copy to:
	Ares Management LLC
3340 Peachtree Road NE, Suite 1660
Atlanta, Georgia 30326
Attn: Howard C. Huang
Phone:   678-538-1919
Email: hhuang@aresmgmt.com

	With additional copy to:
	Haynes and Boone, LLP
2323 Victory Avenue, Suite 700
Dallas, Texas 75219
Attn: Richard K. Martin
Phone:   214-651-5508
Fax:   214-200-0740
E-mail: rick.martin@haynesboone.com

	If to Purchaser:
	Steadfast Asset Holdings, Inc.
18100 Von Karman, Suite 500
Irvine, CA  92612
Attn: Ana Marie del Rio
Phone:   949.852.0700
Fax:   949.852.0143
E-Mail: AnaMarie.delRio@Steadfastco.com

	With a copy to:
	Garrett DeFrenza Stiepel Ryder LLP
3200 Bristol Street, Suite 850
Costa Mesa, CA 92626-1808
Attn: Marcello F. De Frenza
Email: mdefrenza@gdsrlaw.com 
Phone: (714) 384-4302
Fax:  (714) 384-4320

	
		
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	(b)
	Exculpation; Limitation of Liability.  Notwithstanding anything to the contrary in this Contract or any document executed in connection with the Closing, neither Seller's nor Purchaser's direct or indirect shareholders, partners, members, beneficiaries and owners, nor their respective trustees, officers, directors, employees, agents, security holders, partners, members, managers or advisors, assume any personal liability for any obligations entered into on behalf of Purchaser or Seller under this Contract or any document executed in connection with the Closing, and their respective individual assets shall not be subject to any claims of any person relating to such obligations. In no event shall either Seller or Purchaser be liable to the other for any consequential, exemplary or punitive damages in respect of any claim arising under this Contract or any document executed in connection with the Closing.  Moreover, after Closing, Seller's liability however and whenever arising, whether based on or through, directly or indirectly, in whole or in part, any failure, breach, agreement, representation, warranty, covenant or indemnification provided herein, at law or in equity or any other claim or basis arising under this Contract, at law, or in equity, shall not exceed, in the aggregate, the Liability Cap except that said Liability Cap shall not apply with respect to Seller’s obligations under Section 5(g), Section 5(h), or Section 9.  Purchaser shall not have any right to pursue or recover, to any extent, from Seller at any time after Closing in connection with this Contract, any document executed in connection with the Closing, or the transactions contemplated hereby or thereby, an amount, in the aggregate, from Seller in excess of the Liability Cap except as set forth in the previous sentence.  The provisions of this Section 28(b) shall survive the Closing or any termination of this Contract.

		
	(c)
	Entire Agreement.  This Contract constitutes the entire agreement between Seller and Purchaser regarding the subject matter hereof and supersedes all oral statements and prior writings relating thereto.  Except for those set forth in this Contract, no representations, warranties or agreements have been made by Seller or Purchaser to the other with respect to this Contract or the obligations of Seller or Purchaser in connection therewith.Amendments.  This Contract may not be amended except by instrument in writing signed by Seller and Purchaser Tenant.  

		
	(e)
	 Governing Law.  This Contract will be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Tarrant County, Texas.

		
	(f)
	Successors and Assigns.  This Contract will be binding upon and inure to the benefit of the parties hereto, their respective heirs, executors, administrators, legal representatives, successors and permitted assigns.

		
	(g)
	Severability.  In case any one or more of the provisions contained in this Contract shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provision hereof, and this Contract will be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.  Furthermore, in lieu of any such invalid, illegal or unenforceable provision, there will be automatically added to this Contract a provision as similar to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

		
	(h)
	Time.  Time is of the essence with this Contract.

	
		
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	(i)
	References.  All references to "Sections" contained in this Contract are, unless specifically indicated otherwise, references to articles, sections, subsections, and paragraphs of this Contract.  Whenever in this Contract the singular number is used, the same shall include the plural where appropriate (and vice versa), and words of any gender shall include each other gender where appropriate.  All references to "Exhibits" and "Schedules" are, unless specifically indicated otherwise, references to exhibits, schedules, and attachments to this Contract, which are incorporated into this Contract by each reference.

		
	(j)
	Broker Notice.  In accordance with the requirements of the Texas Real Estate License Act, Purchaser is hereby advised by Broker that (i) Purchaser should be furnished with or obtain a policy of title insurance or have the abstract covering the Property examined by any attorney of its own selection, and (ii) unless otherwise agreed to in writing by the parties hereto, Broker is being paid by Seller and is representing Seller in this transaction.  

		
	(k)
	Counterparts.  The parties may execute this Contract in one or more identical counterparts, all of which when taken together will constitute one and the same instrument.  A facsimile or electronic mail transmission shall be binding on the party or parties whose signatures appear thereon.  If so executed, each counterpart is to be deemed an original for all purposes, and all counterparts shall, collectively, constitute one agreement, but in making proof of this Contract, it shall not be necessary to produce or account for more than one counterpart.

		
	(l)
	Rule of Construction.  The parties hereto acknowledge that the parties and their respective counsel have each reviewed and revised this Contract, and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Contract or any amendments or exhibits hereto.

		
	(m)
	Business Day.  "Business Day" means a date that is not a Saturday, Sunday or holiday observed by federally chartered banks in the State of Texas.  Whenever any determination is to be made or action to be taken on a date specified in this Contract, if the date falls upon a date that is not a Business Day, the date for the determination or action shall be extended to the first Business Day immediately thereafter.

		
	(n)
	Jury Trial Waiver.  EACH OF THE PARTIES HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH SELLER AND/OR PURCHASER MAY BE PARTIES ARISING OUT OF, IN CONNECTION WITH, OR IN ANY WAY PERTAINING TO, THIS CONTRACT.  THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY THE PARTIES AND EACH HEREBY REPRESENTS AND WARRANTS TO THE OTHER THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.  EACH PARTY FURTHER REPRESENTS AND WARRANTS TO THE OTHER THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS CONTRACT AND THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OF ITS OWN FREE WILL, AND HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.  THE PROVISIONS OF THIS SECTION SHALL SURVIVE CLOSING OR THE TERMINATION OF THIS CONTRACT.

	
		
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15233083_2
	27

		
	(o)
	Effectiveness.  This Contract is not effective unless an original of this Contract is (or original counterparts of this Contract are) executed by Seller and Purchaser.

		
	(p)
	Exhibits.  Purchaser and Seller agree to the terms of each Exhibit to this Contract, a list of which follows.

	
		
	 
	 

	Exhibit A
	- Description of Land

	Exhibit B
	- Special Warranty Deed

	Exhibit C
	- Bill of Sale

	Exhibit D
	- Assignment and Assumption Agreement

	Exhibit E
	- Assignment of Tenant Leases and Assumption

	Exhibit F
	- Tenant Notice Letter

	Exhibit G
	- Owner Affidavit

	Exhibit H
	- Mineral Severance Deed

	Schedule 1
	- Personal Property

	Schedule 2
	- Service Contracts

	Schedule 3
	- Notice of Violations

	Schedule 4
	- Rent Roll

		
	29.
	RECORD ACCESS AND RETENTION.  To the extent that (a) such has not previously been provided by Seller to Purchaser or (b) is not otherwise in Purchaser's possession or control, Seller shall promptly provide to Purchaser (at Purchaser’s expense) or Purchaser’s auditor copies of, or shall provide Purchaser or Purchaser’s auditor reasonable access to, such financial and other factual information as may be reasonably requested by Purchaser or Purchaser’s auditor, and in the possession or control of Seller, to enable Purchaser’s auditor to conduct an audit, in accordance with Rule 3-14 of Securities and Exchange Commission Regulation S-X, of the operating statements and income and expenses of the Property for the year to date of the year in which Closing occurs plus the two (2) immediately preceding calendar years.  Seller shall reasonably cooperate (at no cost to Seller) with Purchaser’s auditor in the conduct of such audit.  Seller shall maintain its records for use under this Section 29 for a period of not less than two (2) years after the Closing Date.  The provisions of this Section 29 shall survive Closing for two years. 

REMAINDER OF PAGE INTENTIONALLY BLANK.
SIGNATURE PAGE(S) FOLLOWS.

	
		
	Purchase and Sale Agreement
15233083_2
	28

EXECUTED on the dates set forth below to be effective as of the Effective Date.

SELLER:

AP WP GREEN REIT LLC, a Delaware limited liability company

By: AP WP Texas MF LLC, a Delaware limited liability company, its Manager

	
			
	By:
	 
	/s/ Howard C. Huang

	Name:
	 
	Howard C. Huang

	Title:
	 
	Vice President

	Date signed: June 29, 2015

Contract for Purchase and Sale
Joinder Page

PURCHASER:

STEADFAST ASSET HOLDINGS, INC., 
a California corporation

	
				
	By:
	 
	/s/ Ana Marie del Rio
	 

	Name:
	 
	Ana Marie del Rio
	 

	Title:
	 
	Vice President
	 

	 
	 
	 
	 

	 
	 
	Date signed: June 29, 2015

	 
	 

Contract for Purchase and Sale
Joinder Page

JOINDER BY THE TITLE COMPANY

First American Title Insurance Company, referred to in this Contract as the "Title Company," hereby acknowledges that it received this Contract executed by Seller and Purchaser on June 29, 2015, and accepts the obligations of the Title Company as set forth herein.  The Title Company shall notify Seller and Purchaser when the Title Company receives the Initial Earnest Money and, if applicable, the Additional Earnest Money and Extension Deposit.  The Title Company hereby agrees to hold and distribute the Earnest Money and interest thereon, and Closing proceeds in accordance with the terms and provisions of this Contract.  The Title Company hereby assumes all responsibilities for information reporting required under Section 6045(e) of the Internal Revenue Code.  The Title Company will not be a necessary party to any amendment of this Contract that does not increase the Title Company's obligations or liabilities hereunder.

First American Title Insurance Company

	
			
	By:
	 
	/s/ Stephen Farber

	Name:
	 
	Stephen Farber

	Title:
	 
	VP

	 
	 
	 

	 
	 
	 

	Date signed: June 31, 2015

	
		
	Contract for Purchase and Sale

	Schedule-0

EXHIBIT A
to
Contract for Purchase and Sale

PROPERTY DESCRIPTION

	
		
	Purchase and Sale Agreement

	A-1

	
		
	Purchase and Sale Agreement

	A-2

	
		
	Purchase and Sale Agreement

	A-3

EXHIBIT B
to
Contract of Sale

NOTICE OF CONFIDENTIALITY RIGHTS:  IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.

SPECIAL WARRANTY DEED

	
					
	STATE OF TEXAS
	 
	§
	 
	 

	 
	 
	§
	 
	KNOW ALL PERSONS BY THESE PRESENTS:

	COUNTY OF ___________]
	 
	§
	 
	 

That AP WP GREEN REIT LLC, a Delaware limited liability company ("Grantor"), for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration to it in hand paid by _______________, a _______________, whose address is _____________________ (hereinafter, whether one or more, referred to as "Grantee"), the receipt and sufficiency of which are hereby acknowledged and confessed, and subject to the exceptions, liens, encumbrances, terms and provisions to conveyance and warranty hereinafter set forth and described, has GRANTED, BARGAINED, SOLD and CONVEYED, and by these presents does hereby GRANT, BARGAIN, SELL and CONVEY, unto Grantee all of the real property situated in Tarrant County, Texas, described on Exhibit A, which is attached hereto and made a part hereof for all purposes, together with all and singular the rights, benefits, privileges, easements, tenements, hereditaments, and appurtenances thereon or in anywise appertaining thereto, and together with all buildings and improvements located thereon and any right, title, and interest of Grantor in and to adjacent streets, alleys, strips, gores, and rights-of-way (such land, rights, benefits, privileges, easements, tenements, hereditaments, appurtenances, improvements, and interests being hereinafter referred to as the "Property").

This conveyance is made and accepted subject and subordinate to all easements, restrictions, rights, reservations, encumbrances and other matters (the "Permitted Encumbrances") set forth on Exhibit B, which is attached hereto and made a part hereof for all purposes.

TO HAVE AND TO HOLD the Property, subject to the Permitted Encumbrances, unto Grantee, its successors and assigns, forever; and Grantor does hereby bind itself, its successors and assigns, to WARRANT AND FOREVER DEFEND all and singular the Property unto Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same, or any part thereof, except as to the Permitted Encumbrances, by, through or under Grantor, but not otherwise.

Grantee, by its acceptance hereof, hereby assumes and agrees to pay any and all standby fees, taxes, and assessments by any taxing authority for the calendar year 2015, and subsequent years.

REMAINDER OF PAGE INTENTIONALLY BLANK.
SIGNATURE PAGES FOLLOW.

	
		
	Purchase and Sale Agreement

	B-1

EXECUTED by the undersigned on this ___ day of ________________, 20__, to be effective upon delivery.

GRANTOR:

AP WP ______________ REIT LLC, a Delaware limited liability company

By: AP WP Texas MF LLC, a Delaware limited liability company, its Manager

By: _______________
Name:  _____________
Title:  _______________
Date signed:                

	
			
	STATE OF TEXAS
	 
	§

	 
	 
	§

	COUNTY OF _______
	 
	§

This instrument was acknowledged before me on this ______ day of __________________, 20___, by __________________, _____________________ of ___________________________, a ______________________, on behalf of said _____________________.

__________________________________
Notary Public in and for the State of Texas

(SEAL)

	
		
	Purchase and Sale Agreement

	B-2

EXHIBIT A
to
Special Warranty Deed

PROPERTY DESCRIPTION

	
		
	Purchase and Sale Agreement

	B-3

EXHIBIT B
to
Special Warranty Deed

PERMITTED ENCUMBRANCES

	
		
	Purchase and Sale Agreement

	B-4

EXHIBIT C
to
Contract for Purchase and Sale

BILL OF SALE

	
					
	STATE OF TEXAS
	 
	§
	 
	 

	 
	 
	§
	 
	KNOW ALL PERSONS BY THESE PRESENTS:

	COUNTY OF ___________
	 
	§
	 
	 

AP WP GREEN REIT LLC, a Delaware limited liability company ("Seller"), for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration to Seller in hand paid by __________, a __________ ("Purchaser"), the receipt of which is hereby acknowledged, has bargained, sold, delivered and assigned, and by these presents does bargain, sell, deliver and assign, unto Purchaser all equipment, fixtures, appliances, inventory and other tangible personal property of whatever kind or character owned by Seller and attached to or installed or located on or in that certain real property situated in Tarrant County, Texas, and the improvements situated thereon, such tract of land being described on Exhibit A, attached hereto and made a part hereof for all purposes, including, but not limited to, furniture, furnishings, drapes and floor coverings, office equipment and supplies, heating, lighting, refrigeration, plumbing, ventilating, incinerating, cooking, laundry, communication, electrical, dishwashing, and air conditioning equipment, disposals, window screens, storm windows, recreational equipment, pool equipment, patio furniture, sprinklers, hoses, tools and lawn equipment and the items described on Schedule 1 attached hereto and made a part hereof (collectively, the "Property").

Seller has executed this Bill of Sale and BARGAINED, SOLD, DELIVERED and ASSIGNED the Property and Purchaser has accepted this Bill of Sale and purchased the Property AS IS AND WHEREVER LOCATED, WITHOUT ANY REPRESENTATIONS OR WARRANTIES OF WHATSOEVER NATURE, EXPRESS, IMPLIED, OR STATUTORY, IT BEING THE INTENTION OF SELLER AND PURCHASER TO EXPRESSLY NEGATE AND EXCLUDE ALL WARRANTIES WHATSOEVER, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE, WARRANTIES CREATED BY AFFIRMATION OF FACT OR PROMISE OR BY ANY DESCRIPTION OF THE PROPERTY OR BY ANY SAMPLE OR MODEL AND ANY OTHER WARRANTIES CONTAINED IN OR CREATED BY THE TEXAS UNIFORM COMMERCIAL CODE OR ANY OTHER LAW.

Subject to the matters set forth herein, Seller does hereby bind itself, its successors and assigns, to forever warrant and defend title to the Property unto Purchaser, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof, by, through or under Seller, but not otherwise.  The sale, delivery and assignment of the Property is, however, subject to "Permitted Encumbrances" to which that certain Special Warranty Deed ("Deed") of even date herewith from Seller to Purchaser conveying the tract of land described on Exhibit A hereto is made subject as fully as if and for all purposes as if the Property were included and described in the Deed.

REMAINDER OF PAGE INTENTIONALLY BLANK.
SIGNATURE PAGE(S) FOLLOWS.

	
		
	Purchase and Sale Agreement

	C-1

EXECUTED by the undersigned on the date set forth below, to be effective upon delivery.  The reference date for this Bill of Sale is __________, 20___.

SELLER:

AP WP ______________ REIT LLC, a Delaware limited liability company

By: AP WP Texas MF LLC, a Delaware limited liability company, its Manager

By: _______________
Name:  _____________
Title:  _______________

Date signed:                

	
		
	Purchase and Sale Agreement

	C-2

EXHIBIT A
to
Bill of Sale

PROPERTY DESCRIPTION

	
		
	Purchase and Sale Agreement

	C-3

Schedule 1
List of Personal Property

	
		
	Purchase and Sale Agreement

	C-4

EXHIBIT D
to
Contract for Purchase and Sale

ASSIGNMENT AND ASSUMPTION AGREEMENT

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Assignment") is made and entered into as of __________, 20___, by and between AP WP GREEN REIT LLC, a Delaware limited liability company ("Assignor") and _______________, a _______________ ("Assignee").

RECITALS:

WHEREAS, concurrently with the execution and delivery of this Assignment, Assignor is conveying to Assignee by Special Warranty Deed that certain real property, with the improvements located thereon, situated in Tarrant County, Texas (the "Property") and being more particularly described on Exhibit A, which is attached hereto and made a part hereof for all purposes; and

WHEREAS, Assignee desires to purchase from Assignor, and Assignor desires to sell and assign to Assignee, certain intangible personal property.

AGREEMENTS:

NOW, THEREFORE, for and in consideration of the premises and the agreements and covenants herein set forth, together with the sum of TEN DOLLARS ($10.00) and other good and valuable consideration on this day paid and delivered by Assignee to Assignor, the receipt and sufficiency of which are hereby acknowledged and confessed by Assignor, Assignor does hereby ASSIGN, TRANSFER, SET OVER, DELIVER and CONVEY unto Assignee, its successors and assigns, the following properties (collectively, the "Assigned Properties"):  [TO BE CONFORMED TO SECTION 1 OF PSA PRIOR FOR CLOSING]

		
	1.
	The trade name and all trademarks, if any, to the extent assignable, telephone exchanges and the business and goodwill of Assignor in connection with the Property, 

		
	2.
	All assignable warranties and guarantees (express or implied) issued in connection with, or arising out of (a) the purchase and repair of all furniture, fixtures, equipment, inventory, and other tangible personal property owned by Assignor and attached to and located in or used in connection with the Property; or (b) the construction of any of the improvements located on the Property.

		
	3.
	All assignable bonds, licenses, certificates, permits, plans and specifications relating to the operation of the Property or any of the improvements located thereon, or both.

		
	4.
	All leasing materials and brochures, ledger cards, leasing records, leasing applications, tenant credit reports and maintenance and operating records.

		
	5.
	All of Assignor's rights in the service contracts (the "Service Contracts") described on Exhibit B, which is attached hereto and incorporated herein by reference.

By accepting this Assignment and by its execution hereof, Assignee hereby assumes and agrees to perform all of the terms, covenants, and conditions of the Assigned Properties on the part of Assignor therein required to be performed, from and after the date hereof, but not prior thereto.

	
		
	Purchase and Sale Agreement

	D-1

Subject to any limitations on damages contained in that certain Purchase and Sale Agreement between Assignor and Steadfast Asset Holdings, Inc., a California corporation ("Original Purchaser") dated as of June 29, 2015 (as amended and as assigned by Original Purchaser to Assignee, the "Contract"), Assignor agrees that it shall indemnify and hold harmless Assignee from and against any and all claims, demands, losses, liabilities, costs and expenses (including reasonable attorneys' fees) incurred by Assignee as a result of claims or causes of action being brought against Assignee, as Assignor's successor in interest to the Assigned Properties, arising out of or relating to the Assigned Properties and the obligations of Assignor thereunder accruing prior to the date hereof.  Assignee agrees that it shall indemnify and hold harmless Assignor from and against any and all claims, demands, losses, liabilities, costs and expenses (including reasonable attorneys' fees) incurred by Assignor as a result of claims or causes of action being brought against Assignor arising out of or relating to the Assigned Properties and the obligations of Assignee thereunder accruing after the date hereof. 

All of the covenants, terms and conditions set forth herein shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, legal representatives, successors and assigns.

This Assignment may be executed in identical counterparts, all of which, when taken together, will constitute one and the same instrument. 

REMAINDER OF PAGE INTENTIONALLY BLANK.
SIGNATURE PAGE(S) FOLLOWS.

	
		
	Purchase and Sale Agreement

	D-2

EXECUTED by the undersigned on the dates set forth below, to be effective upon delivery.  The date first above written is for reference purposes only.

ASSIGNOR:

AP WP GREEN REIT LLC, a Delaware limited liability company

By: AP WP Texas MF LLC, a Delaware limited liability company, its Manager

By: _______________
Name:  _____________
Title:  _______________

Date signed:                

ASSIGNEE:

,
a                         

By:                        
Name:                        
Title:                         

Date signed:                     

Exhibit A - Property Description
Exhibit B - List of Service Contracts

	
		
	Purchase and Sale Agreement

	D-3

EXHIBIT A
to
Assignment and Assumption Agreement

PROPERTY DESCRIPTION

	
		
	Purchase and Sale Agreement

	D-4

EXHIBIT B
to
Assignment and Assumption Agreement

LIST OF SERVICE CONTRACTS

	
		
	Purchase and Sale Agreement

	D-5

EXHIBIT E
to
Contract for Purchase and Sale

ASSIGNMENT OF TENANT LEASES AND ASSUMPTION

This ASSIGNMENT OF TENANT LEASES AND ASSUMPTION (this "Assignment") is made and entered into as of __________, 20___, by and between AP WP GREEN REIT LLC, a Delaware limited liability company ("Assignor") and _______________, a _______________ ("Assignee").

AGREEMENTS:

Assignor, for good and valuable consideration, the receipt of which is hereby acknowledged, hereby GRANTS, TRANSFERS and ASSIGNS to the Assignee all of Assignor's right, title and interest in and to any and all leases, franchises, licenses, occupancy agreements, or other similar agreements (hereinafter called the "Leases," whether one or more), demising space in or otherwise relating to the improvements now existing on the land described on Exhibit A, attached hereto and made a part hereof (collectively, the land with improvements are referred to herein collectively as the "Premises"); and (ii) all security deposits held by Assignor to the extent Assignee has received a credit therefor from Assignor as of the date hereof  (collectively the items described in (i) and (ii) above are referred to herein collectively as the "Property").

TO HAVE AND TO HOLD the Property, together with all and singular the rights, titles, and interests thereto in anywise belonging, to Assignee, its successors and assigns forever, subject to the "Permitted Encumbrances" to which that certain Special Warranty Deed ("Deed") of even date herewith from Assignor to Assignee conveying the tract of land described on Exhibit A hereto is made subject as fully as if and for all purposes as if the Property were included and described in the Deed.

Assignor has executed this Assignment and has GRANTED, TRANSFERRED and ASSIGNED the Property and Assignee has accepted this Assignment and purchased the Property AS IS AND WHEREVER LOCATED, WITHOUT ANY REPRESENTATIONS OR WARRANTIES OF WHATSOEVER NATURE, EXPRESS, IMPLIED OR STATUTORY, IT BEING THE INTENTION OF ASSIGNOR AND ASSIGNEE TO EXPRESSLY NEGATE AND EXCLUDE ALL WARRANTIES WHATSOEVER, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE, WARRANTIES CREATED BY AFFIRMATION OF FACT OR PROMISE OR BY ANY DESCRIPTION OF THE PROPERTY OR BY ANY SAMPLE OR MODEL AND ANY OTHER WARRANTIES CONTAINED IN OR CREATED BY THE TEXAS UNIFORM COMMERCIAL CODE OR ANY OTHER LAW.

Assignee hereby assumes and agrees to pay and perform all of the terms, covenants, conditions and obligations of the Assignor in connection with the Property arising or accruing on or after the date hereof, and agrees to indemnify and hold Assignor harmless from and against any claims, costs or liabilities in connection therewith arising or accruing on or after the date hereof.  Subject to any limitations on damages contained in that certain Purchase and Sale Agreement between Assignor and Steadfast Asset Holdings, Inc. ("Original Purchaser") dated June 29, 2015 (as amended and as assigned by Original Purchaser to Assignee, the "Contract"), Assignor agrees to indemnify and hold Assignee harmless from and against any claims, costs or liabilities in connection with the Property arising or accruing after December 29, 2010 until (but not including) the date hereof.

	
		
	Purchase and Sale Agreement

	E-1

EXECUTED by the undersigned on the dates set forth below, to be effective upon delivery.  The date first above written is for reference purposes only.

ASSIGNOR:

AP WP GREEN REIT LLC, a Delaware limited liability company

By: AP WP Texas MF LLC, a Delaware limited liability company, its Manager

By: _______________
Name:  _____________
Title:  _______________

Date signed:                

ASSIGNEE:

,
a                         

By:                        
Name:                        
Title:                         

Date signed:                     
Exhibit A - Property Description

	
		
	Purchase and Sale Agreement

	E-2

EXHIBIT A
to
Assignment of Tenant Leases and Assumption

PROPERTY DESCRIPTION

	
		
	Purchase and Sale Agreement

	E-3

EXHIBIT F
to
Contract for Purchase and Sale

TENANT NOTICE LETTER

	
	
	________________________

	Apartment No. __________

	________________________

NOTICE OF CHANGE OF OWNERSHIP

		
	Re:
	Notice of Change of Ownership of [Name of Project], [City], Texas (the "Property")

Dear Resident:

For the purposes of complying with Section 92.105 of the Texas Property Code, you are hereby notified as follows:

		
	1.
	That as of the date hereof AP WP GREEN REIT LLC, a Delaware limited liability company, has transferred, sold, assigned, and conveyed the Property to _______________ (the "New Owner").

		
	2.
	The New Owner has received is, as of the date hereof, responsible for your tenant security deposit and/or pet deposit in the aggregate amount of $__________ with respect to your leased premises at the Property.

		
	3.
	Future rental payments with respect to your leased premises at the Property should be made to the New Owner by delivering to the on-site manager of the Property a check or money order payable to the order of _________________________________________________________________.

Very truly yours,

NEW OWNER:

,
a                         

By:                        
Name:                        
Title:                         

	
		
	Purchase and Sale Agreement

	F-1

Notice of Change of Ownership
Page 2 

TRANSFER ACKNOWLEDGED:

AP WP GREEN REIT LLC, a Delaware limited liability company

By: AP WP Texas MF LLC, a Delaware limited liability company, its Manager

By: _______________
Name:  _____________
Title:  _______________

Date signed:                

	
		
	Purchase and Sale Agreement

	F-2

EXHIBIT G
to
Contract for Purchase and Sale

AFFIDAVIT AS TO DEBTS, LIENS, 
AND POSSESSION

FILE NO.:    __________________________

PROPERTY:     See Exhibit A attached hereto and incorporated herein by reference.    

	
			
	STATE OF TEXAS
	 
	§

	 
	 
	§

	COUNTY OF ___________
	 
	§

Before me, the undersigned authority on this day personally appeared Howard Huang, Vice President of AP WP Texas MF LLC, a Delaware limited liability company, Manager of AP WP GREEN REIT LLC, a Delaware limited liability company, personally known to me to be the person and officer whose name is subscribed hereto and upon his oath deposes and says and represents to First American Title Insurance Company, in this transaction that in the aforesaid capacity and to the best of my knowledge that, except as disclosed in the Commitment for Title Insurance issued under the foregoing File Number:

		
	1.
	AP WP GREEN REIT LLC, a Delaware limited liability company ("Seller"), has no unpaid debts for plumbing fixtures, water heaters, floor furnaces, air conditioners, radio or television antennae, carpeting, rugs, lawn sprinkling systems, venetian blinds, window shades, draperies, electric appliances, fences, street paving, or any personal property or fixtures that are located on the Property described above, and that no such items have been purchased by Seller on time payment contracts, and there are no security interests on such Property secured by financing statement, security agreement or otherwise except the following:

	
			
	Secured Party
	 
	Approximate Amount

	 
	 
	 

	None
	 
	 

	 
	 
	 

		
	2.
	Seller has created no loans or liens (including Federal or State Liens and Judgment Liens) of any kind on such Property except the following:

	
			
	Creditor
	 
	Approximate Amount

	 
	 
	 

	INSERT EXISTING LOAN
	 
	$

	 
	 
	 

    
	
			
	 
	 
	G-1

		
	3.
	All labor and material for work contracted for by Seller used in the construction of improvements on the above described Property have been paid for and there are now no unpaid labor or material claims against the improvements or the Property arising out of any labor or materials so contracted  WITHIN THE LAST TWELVE MONTHS, EXCEPT:

[List any work-Seller has lien releases for such work and will provide to title company].        

		
	4.
	No parties in possession of the Property (other than the current owner) except as follows:

See Rent Roll attached as Exhibit B hereto.                            
    
		
	5. 
	No fees for appraisals of the Property that are claimed, earned or payable (whether arising out of any prior transaction or the current transaction), with regard to the Property, will constitute a lien on the Property, except as follows:

None                                                
    
		
	6.
	Provided First American Title Insurance Company, disburses the sales proceeds in accordance with the final settlement statement of Seller, no broker’s commission or similar fees that are claimed, earned or payable with regard to the Property (whether arising out of any lease, prior transaction or the current transaction), will constitute a lien on the Property, except as follows:

None                                                

		
	7.
	None of the leases shown on the Rent Roll attached as Exhibit B hereto contain any rights of first refusal or options to purchase all or any portion of the insured land.

This affidavit is made to First American Title Insurance Company as an inducement to them to complete the above referred to transaction, and I/We realize that First American Title Insurance Company is relying upon the representations contained herein.

REMAINDER OF PAGE INTENTIONALLY BLANK.
SIGNATURE PAGE(S) FOLLOWS.

    
	
			
	 
	 
	G-2

SELLER:

AP WP GREEN REIT LLC, a Delaware limited liability company

By: AP WP Texas MF LLC, a Delaware limited liability company, its Manager

By: ____________________
Name:  Howard Huang
Title:     Vice President

Date signed:  _______ ___, 2015

SWORN TO AND SUBSCRIBED before me under the penalties of perjury, this ___ day of _____, 2015.

___________________________________
Notary Public in and for the State of Georgia

____________________________________
Printed/Typed Name of Notary Public

My Commission Expires:

_____________________

EXHIBIT A

PROPERTY DESCRIPTION

(Attached)

EXHIBIT B

RENT ROLL

EXHIBIT H
to
Contract for Purchase and Sale

MINERAL RIGHTS DEED 

	
		
	WHEN RECORDED MAIL TO:

Western Rim 
Attn.: Marcus Hiles
2505 N. State Highway 360, Suite 800
Grand Prairie, Texas 75050

	 

NOTICE OF CONFIDENTIALITY RIGHTS.  IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS. YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.

MINERAL RIGHTS DEED

	
					
	STATE OF TEXAS
	 
	§
	 
	 

	 
	 
	§
	 
	KNOW ALL MEN BY THESE PRESENTS

	COUNTY OF ___________
	 
	§
	 
	 

THAT, ___________________, a ____________ ("Grantor"), for and in consideration of $10.00 and other good and valuable consideration in hand paid by _______________________ ("Grantee"), whose address is ____________________________, Attn: _________________, the receipt and sufficiency of which are hereby acknowledged, has GRANTED AND CONVEYED and by these presents does GRANT AND CONVEY unto Grantee, all of Grantor’s interest in and to all of the oil, gas, casing-head gas, and minerals of every kind and nature, in and under, and that may be produced from, or under those certain tracts and parcels of land situated in __________ County, Texas, more particularly described in Exhibit A attached hereto and made a part hereof for all purposes (the "Property"; collectively, the "Mineral Rights Interest")); subject, however, to the following: Grantee and its successors and assigns shall not have the right of ingress and egress over the surface of the Property for mining, drilling, exploring, operating or developing the Mineral Right Interest; provided, further however, nothing herein shall prevent Grantee or its successors and assigns from exploring for, developing and/or producing the Mineral Right Interest by pooling or by directional drilling under the Property from well sites located on other property, subject to the following: (i) Grantee and its successors and assigns shall only be entitled to produce the 

	
			
	 
	 
	H-1

	Mineral Rights Deed
	 
	 

        

Mineral Rights Interest from wells located on other land or by means of one or more wellbores drilled directionally into the subsurface of the Property from adjacent land so long such wellbore enters the subsurface of the Property at a depth of at least 500 feet beneath the surface; (ii) Grantee and its successors and assigns shall not be entitled to produce the Mineral Rights Interest from wells located on other land or by means of one or more wellbores drilled directionally into the subsurface of the Property from adjacent land if such wellbore enters the subsurface of the Property at a depth of less than 500 feet beneath the surface unless the then current record owner(s) of the surface rights of the Property consents to such production in writing; (iii) Grantee and its successors and assigns shall not locate any wellhead or other surface-mounted facilities related to mineral exploration, production, or transportation (other than screening) of the Mineral Rights Interest within 500 feet from the nearest boundary of the Property; and (iv) any such drilling, exploring, operating, developing, or extracting of the Mineral Rights Interest by Grantee shall have no material effect on the bearing capacity or structural integrity of the soils at the surface of the Property or in a manner which interferes with the surface or subsurface support of any improvements constructed on the Property.  

TO HAVE AND TO HOLD such interest in and to the Mineral Rights Interests, together with all and singular the rights and appurtenances thereto unto Grantee, its successors and assigns, forever.  Grantor for Grantor and Grantor’s successors and assigns hereby agrees to WARRANT AND FOREVER DEFEND, all and singular such Mineral Rights Interests unto Grantee and Grantee’s successors and assigns, against every person whomsoever lawfully claiming or to claim the same, or any part thereof, by, through or under Grantor, but not otherwise.:

    
[Remainder of this page intentionally blank.]

	
			
	 
	 
	H-2

	Mineral Rights Deed
	 
	 

        

EXECUTED as of  __________________, 2015.

GRANTOR:

By:     _________________________
Name:    __________________________
Title:    __________________________
                    

	
			
	THE STATE OF _____
	 
	§

	 
	 
	§

	COUNTY OF __________
	 
	§

 This instrument was acknowledged before me on ____________ ____, 2015, by ___________________________, ________________________ of __________________, a __________________, on behalf of said ________________, in its capacity as _______________ of ________________, a _______________, on behalf of said ___________.
                    
	
	
	 

	Notary Public in and for the State of _____________

	
			
	Mineral Rights Deed
	 
	Signature Page

        
            

EXHIBIT A

PROPERTY DESCRIPTION

Mineral Rights Deed        
            

SCHEDULE 1
to
Contract for Purchase and Sale

List of Personal Property

[INTENIONALLY OMITTED]

	
			
	Personal Property- Schedule 1
	 
	-1

        
            

SCHEDULE 2
to
Contract for Purchase and Sale

Service Contracts

[INTENIONALLY OMITTED]

	
			
	Service Contracts- Schedule 2
	 
	-1

        
            

SCHEDULE 3
to
Contract for Purchase and Sale

Notice of Violations

NONE

	
			
	Notice of Violations- Schedule 3
	 
	-1

        
            

SCHEDULE 4
to
Contract for Purchase and Sale

Rent Roll 
June 29, 2015

[INTENIONALLY OMITTED]

	
			
	Rent Roll- Schedule 4
	 
	-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00249-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00249-of-00352.parquet"}]]