Document:

Exhibit 10.3

 

PURCHASE AND SALE AGREEMENT

 

between

 

BR WORLD GATEWAY, LLC, as Seller

 

and

 

KRE TOPAZ PORTFOLIO INVESTOR LLC,
as Purchaser

Dated as of June 17, 2019

 

Topaz Portfolio – ARIUM Palms Sale

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Article 1 DEFINITIONS	4
	 	 	 
	SECTION 1.1	Defined Terms	4
	 	 	 
	Article 2 SALE, PURCHASE PRICE AND CLOSING	13
	 	 	 
	SECTION 2.1	Sale of Property	13
	SECTION 2.2	Purchase Price	15
	SECTION 2.3	Closing Procedure	16
	 	 	 
	Article 3 REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER	17
	 	 	 
	SECTION 3.1	Seller Representations and Warranties	17
	SECTION 3.2	Amendments to Schedules, Limitations on and Breaches of Representations and Warranties of Seller	21
	SECTION 3.3	Covenants of Seller Prior to Closing	23
	SECTION 3.4	Property Management During Transition Period	26
	 	 	 
	Article 4 REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER	28
	 	 	 
	SECTION 4.1	Representations and Warranties of Purchaser	28
	SECTION 4.2	Covenants of Purchaser	29
	 	 	 
	Article 5 CONDITIONS PRECEDENT TO CLOSING	29
	 	 	 
	SECTION 5.1	Conditions Precedent to Seller’s Obligations	29
	SECTION 5.2	Conditions Precedent to Purchaser’s Obligations	30
	SECTION 5.3	Waiver of Conditions Precedent	30
	SECTION 5.4	Failure of Conditions Precedent	31
	 	 	 
	Article 6 CLOSING DELIVERIES	31
	 	 	 
	SECTION 6.1	Purchaser’s Closing Deliveries	31
	SECTION 6.2	Seller’s Closing Deliveries	32
	 	 	 
	Article 7 INSPECTIONS; DUE DILIGENCE; RELEASE	34
	 	 	 
	SECTION 7.1	Inspections	34
	SECTION 7.2	Seller’s Deliveries	37
	SECTION 7.3	Purchaser’s Termination Right	38
	SECTION 7.4	Seller’s Disclaimer	38
	SECTION 7.5	Examination; No Contingencies	39
	SECTION 7.6	RELEASE	42
	SECTION 7.7	Effect of Purchaser Waiver of Lead-Based Paint Inspections	44
	 	 	 
	Article 8 TITLE AND PERMITTED EXCEPTIONS	44
	 	 	 
	SECTION 8.1	Title Insurance and Survey.	44
	SECTION 8.2	Intentionally Deleted	46
	SECTION 8.3	Certain Exceptions to Title; Inability to Convey	46
	SECTION 8.4	Purchaser’s Right to Accept Title	47

 

     

     

    

  

	Article 9 TRANSACTION COSTS; RISK OF LOSS	47
	 	 	 
	SECTION 9.1	Transaction Costs	47
	SECTION 9.2	Risk of Loss	48
	 	 	 
	Article 10 ADJUSTMENTS	50
	 	 	 
	SECTION 10.1	Rents	50
	SECTION 10.2	Taxes and Assessments	51
	SECTION 10.3	Intentionally Deleted	51
	SECTION 10.4	Utility Charges	51
	SECTION 10.5	Miscellaneous Revenues	52
	SECTION 10.6	Assumed Contracts	52
	SECTION 10.7	Association Fees	52
	SECTION 10.8	Security Deposits	52
	SECTION 10.9	Other Adjustments	52
	SECTION 10.10	Re-Adjustment	53
	 	 	 
	Article 11 INDEMNIFICATION	53
	 	 	 
	SECTION 11.1	Indemnification by Seller	53
	SECTION 11.2	Indemnification by Purchaser	53
	SECTION 11.3	Limitations on Indemnification	54
	SECTION 11.4	Survival	54
	SECTION 11.5	Notification	54
	SECTION 11.6	Indemnification as Sole Remedy	54
	SECTION 11.7	Limits on Indemnification	55
	 	 	 
	Article 12 TAX APPEALS	55
	 	 	 
	SECTION 12.1	Prosecution and Settlement of Proceedings	55
	SECTION 12.2	Application of Refunds or Savings	55
	SECTION 12.3	Survival	56
	 	 	 
	Article 13 DEFAULT	56
	 	 	 
	SECTION 13.1	Purchaser’s Default	56
	SECTION 13.2	Seller’s Default	56
	SECTION 13.3	Certain Limitations	57
	SECTION 13.4	Cross Defaults under Affiliated Purchase Agreements	57
	 	 	 
	Article 14 MISCELLANEOUS	57
	 	 	 
	SECTION 14.1	Exculpation	57
	SECTION 14.2	Broker	58
	SECTION 14.3	Confidentiality; Publicity; IRS Reporting Requirements	58
	SECTION 14.4	Escrow Provisions	60
	SECTION 14.5	Successors and Assigns; No Third-Party Beneficiaries	61
	SECTION 14.6	Assignment	61
	SECTION 14.7	Further Assurances	62
	SECTION 14.8	Notices	62

 

    	 	2	 

     

    

  

	SECTION 14.9	Entire Agreement	64
	SECTION 14.10	Amendments	64
	SECTION 14.11	No Waiver	65
	SECTION 14.12	Governing Law	65
	SECTION 14.13	Submission to Jurisdiction	65
	SECTION 14.14	Severability	65
	SECTION 14.15	Headings	65
	SECTION 14.16	Counterparts	65
	SECTION 14.17	Acceptance of Deed	65
	SECTION 14.18	Construction	66
	SECTION 14.19	Recordation	66
	SECTION 14.20	Time is of the Essence	66
	SECTION 14.21	Business Days; Calculation of Time Periods	66
	SECTION 14.22	Survival.	66
	SECTION 14.23	Legal Costs	66
	SECTION 14.24	Intentionally omitted	67
	SECTION 14.25	Exchange	67
	SECTION 14.26	Effect of Affiliated Purchase Agreements.	67
	SECTION 14.27	Special Provisions Regarding Partial Termination.	68

 

Schedules

 

	Schedule A	-	Legal Description of Land
	Schedule B	-	List of Seller’s Deliveries
	Schedule C	-	Inventory of Personal Property 
	Schedule D	-	Excluded Personal Property
	Schedule 3.1	-	List of Seller’s Core Deliveries
	Schedule 3.1(h)	-	Litigation
	Schedule 3.1(i)	-	Notices of Violation
	Schedule 3.1(j)	-	Contracts
	Schedule 3.1(k)	-	Rent Roll
	Schedule 3.1(q)	-	Insurance Certificate

 

Exhibits

 

	Exhibit A	-	Form of Bill of Sale and Assignment
	Exhibit B	-	Form of Tenant Notice
	Exhibit C	-	Form of Condominium Conversion Prohibition Agreement
	Exhibit D	-	Form of Deed
	Exhibit E	-	Form of Seller’s Title Affidavit
	Exhibit F	-	Form of Seller’s Closing Certificate
	Exhibit G-1	-	Form of New Property Management Agreement
	Exhibit G-2	-	New Operating Budget

 

    	 	3	 

     

    

  

PURCHASE AND SALE AGREEMENT

 

Topaz Portfolio – ARIUM Palms

 

THIS PURCHASE AND SALE
AGREEMENT, dated effective as of June 17, 2019 (the “Effective Date”), is made by and between BR WORLD GATEWAY,
LLC, a Delaware limited liability company (“Seller”), and KRE TOPAZ PORTFOLIO INVESTOR LLC, a Delaware
limited liability company (“Purchaser”), and is joined by CHRES/MANAGEMENT, L.L.C., a Tennessee limited
liability company (“New Property Manager”), for the limited purpose of agreeing to the terms of Section 3.4(a)
applicable to it.

 

RECITALS

 

A.            Seller
is the owner in fee simple of the real property commonly known as ARIUM Palms at World Gateway Apartments, located at 9000 Avenue
Pointe Circle, Orlando, Orange County, Florida 32821 (the “Property”), which consists of (i) the land more particularly
described on Schedule A annexed hereto (the “Land”), together with (ii) the Related Property (as defined
below).

 

B.            Seller
desires to sell to Purchaser, and Purchaser desires to purchase from Seller, the Land and Seller’s right, title and interest
in and to the Related Property on the terms and conditions hereinafter set forth.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

Article
1 

DEFINITIONS

 

SECTION 1.1            Defined
Terms. The capitalized terms used herein will have the following meanings.

 

“Access Agreement”
shall mean the Access and Due Diligence Agreement between each member of the Seller Group, as sellers, and Purchaser, dated as
of April 29, 2019.

 

“Additional
Title Disapproval Matters” shall have the meaning assigned thereto in Section 8.1(e).

 

“Additional
Title Disapproval Notice” shall have the meaning assigned thereto in Section 8.1(e).

 

“Additional
Title Disapproval Response” shall have the meaning assigned thereto in Section 8.1(e).

 

    	 	4	 

     

    

 

“Additional
Title Matters” shall have the meaning assigned thereto in Section 8.1(e).

 

“Additional
Title Response Period” shall have the meaning assigned thereto in Section 8.1(e).

 

“Adjustment Point”
shall have the meaning assigned thereto in Article 10.

 

“Affiliate”
shall mean any Person (as defined below) that directly or indirectly through one or more intermediaries, controls, is controlled
by or is under common control with another Person. The term “control” shall mean the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise, and shall in any event include the ownership or power to vote fifty percent (50%) or more
of the outstanding equity or voting interests, respectively, of such other Person.

 

“Affiliated
Purchase Agreements” shall mean the Three Property Purchase Agreement, the Sorrel Phillips Creek Ranch Purchase Agreement,
and the Landings at Four Corners Purchase Agreement, collectively.

 

“Affiliated
Sellers” shall mean the Sovereign Seller, the Leigh House Seller, the Preston View Seller, the Sorrel Phillips Creek
Ranch Seller, and the Landings at Four Corners Seller, collectively.

 

“Agreement”
shall mean this Purchase and Sale Agreement, together with the exhibits and schedules attached hereto, as the same may be amended,
restated, supplemented or otherwise modified from time to time.

 

“Anti-Bribery,
Anti-Money Laundering and Anti-Terrorism Laws” shall have the meaning assigned thereto in Section 3.1(g)(i).

 

“Applicable
Law” shall mean all statutes, laws, common law, rules, regulations, ordinances, codes or other legal requirements of
any Governmental Authority, board of fire underwriters and similar quasi-governmental agencies or entities, and any judgment, injunction,
order, directive, decree or other judicial or regulatory requirement of any Governmental Authority of competent jurisdiction affecting
or relating to the Person or property in question.

 

“Assumed Contracts”
shall have the meaning assigned thereto in Section 3.4(c).

 

“Basket Limitation”
shall mean an amount equal to $25,000.00.

 

“Bill of Sale
and Assignment” shall have the meaning assigned thereto in Section 6.1(a)(i).

 

“Broker”
shall have the meaning assigned thereto in Section 14.2(a).

 

“BSA”
shall have the meaning assigned thereto in Section 3.1(g)(ii).

 

    	 	5	 

     

    

 

“Business
Day” shall mean any day other than a Saturday, Sunday or other day on which banks are authorized or required by law to
be closed in the City of New York, New York or by United States federal laws.

 

“Cap Limitation”
shall mean an amount equal to one and one half percent (1.5%) of the Purchase Price.

 

“Changed Condition”
shall have the meaning assigned thereto in Section 3.2(d).

 

“Changed Condition
Notice” shall have the meaning assigned thereto in Section 3.2(d).

 

“Changed Condition
Threshold” shall have the meaning assigned thereto in Section 3.2(c)(ii).

 

“CGL”
shall have the meaning assigned thereto in Section 7.1(b)(viii).

 

“Claims”
shall have the meaning assigned thereto in Section 7.6(a).

 

“Closing”
shall have the meaning assigned thereto in Section 2.3(a).

 

“Closing Date”
shall mean August 29, 2019, or such earlier date as is mutually agreed to between Seller and Purchaser.

 

“Closing Documents”
shall mean any conveyance document, certificate, instrument or other document delivered pursuant to this Agreement at Closing,
including, without limitation, each of the documents to be delivered by Seller pursuant to Section 6.2 and by Purchaser pursuant
to Section 6.1.

 

“Closing Funds”
shall have the meaning assigned thereto in Section 2.2(a)(iii).

 

“Closing Statement”
shall mean the closing statement for the purchase and sale of the Property, to be prepared by the Escrow Agent setting forth the
prorations and adjustments to the Purchase Price required by this Agreement.

 

“Condition
of the Property” shall have the meaning assigned thereto in Section 7.5(b).

 

“Condominium
Conversion Prohibition Agreement” shall have the meaning assigned thereto in Section 6.1(a)(iii).

 

“Contracts”
shall mean, collectively, all written agreements or contracts of Seller, or entered into on behalf of Seller or Existing Property
Manager, relating to the ownership or operation of the Property, but excluding the Leases and the Existing Property Management
Agreement, as more particularly described on Schedule 3.1(j) attached hereto

 

“Deed”
shall have the meaning assigned thereto in Section 6.2(a).

 

    	 	6	 

     

    

 

“Deemed Purchaser
Knowledge” shall mean that Purchaser shall be deemed to have knowledge of the matters set forth in Seller’s Core
Deliveries and in the Permitted Exceptions.

 

“Disapproved
Title Matter” shall have the meaning assigned thereto in Section 8.1(c).

 

“Due Diligence
Period” shall mean the period of time from April 29, 2019 until 5:00 p.m. Eastern Time on June 17, 2019.

 

“Earnest Money”
shall have the meaning assigned thereto in Section 2.2(a)(i).

 

“Earnest Money
Escrow Account” shall mean a federally-insured interest-bearing bank account of Escrow Agent, to be reasonably acceptable
to Seller and Purchaser.

 

“Effective
Date” shall have the meaning assigned thereto in the Preamble to this Agreement.

 

“Environmental
Laws” shall mean any of the Comprehensive Environmental Response, Compensation and Liability Act, as amended, 42 U.S.C.
§9601 et seq., the Hazardous Materials Transportation Act, as amended, 49 U.S.C. §1801 et seq., the Resource Conservation
and Recovery Act of 1976, as amended, 42 U.S.C. §6901 et seq., Section 311 of the Clean Water Act, 33 U.S.C. §1251 et
seq., the Clean Air Act, 42 U.S.C. §7401 et seq., the Toxic Substances Control Act, 15 U.S.C. §2601 et seq., and the
regulations and publications issued under any such laws, any state or local statutes, regulations and ordinances pertaining to
Hazardous Materials or to the protection of human health and the environment.

 

“Escrow Agent”
shall mean First American Title Insurance Company, Six Concourse Parkway, Suite 2000, Atlanta, Georgia 30328 (attention: Barbara
H. Morgan).

 

“Estoppel”
and “Estoppels” shall have the meanings assigned thereto in Section 3.3(a)(xiv).

 

“Exchange”
shall have the meaning assigned thereto in Section 14.25.

 

“Excluded
Assets” shall have the meaning assigned thereto in Section 2.1(c).

 

“Executive
Order” and “Executive Orders” shall have the meanings assigned thereto in Section 3.1(g)(i).

 

“Existing
Property Management Agreement” shall mean the existing property management agreement between Seller and Existing Property
Manager with respect to management of the Property, as the same may be amended, modified or supplemented from time to time.

 

“Existing
Property Manager” shall mean Carroll Management Group, LLC, a Georgia limited liability company.

 

“Forbidden
Entity” shall have the meaning assigned thereto in Section 3.1(g)(i).

 

    	 	7	 

     

    

 

“Government
List” shall mean any of (i) the two lists maintained by the United States Department of Commerce (Denied Persons and
Entities), (ii) the list maintained by the United States Department of Treasury (Specially Designated Nationals and Blocked Persons),
and (iii) the two lists maintained by the United States Department of State (Terrorist Organizations and Debarred Parties).

 

“Governmental
Authority” shall mean any federal, state or local government or other political subdivision thereof, including, without
limitation, any agency or entity exercising executive, legislative, judicial, regulatory or administrative governmental powers
or functions, in each case to the extent the same has jurisdiction over the Person or property in question.

 

“Hazardous
Materials” shall mean (i) those substances included within the definitions of any one or more of the terms “Hazardous
Substances,” “Toxic Pollutants,” “Hazardous Materials,” “Toxic Substances,” and “Hazardous
Waste” under Environmental Laws, (ii) petroleum, radon gas, lead-based paint, asbestos or asbestos-containing material and
polychlorinated biphenyls, and (iii) mold or water conditions which may exist at the Real Property or other substances, wastes
or materials listed or defined under Environmental Laws.

 

“Improvements”
shall have the meaning assigned thereto in Section 2.1(b)(i).

 

“Indemnification
Claim” shall have the meaning assigned thereto in Section 11.5.

 

“Indemnified
Party” shall have the meaning assigned thereto in Section 11.5.

 

“Indemnifying
Party” shall have the meaning assigned thereto in Section 11.5.

 

“Independent
Contract Consideration” shall have the meaning assigned thereto in Section 2.2(c).

 

“IRS”
shall mean the Internal Revenue Service.

 

“IRS Reporting
Requirements” shall have the meaning assigned thereto in Section 14.3(c).

 

“ISO”
shall have the meaning assigned thereto in Section 7.1(b)(viii).

 

“Landings
at Four Corners Property” shall mean that certain improved real property located in Davenport, Florida and commonly known
as Landings at Four Corners Apartments, as further described in the Landings at Four Corners Purchase Agreement.

 

“Landings
at Four Corners Purchase Agreement” shall mean that certain Purchase and Sale Agreement dated as of even date herewith
by and between Landings at Four Corners Seller and Purchaser, regarding the purchase and sale of the Landings at Four Corners Property,
as such agreement may be amended and/or assigned from time to time.

 

“Landings
at Four Corners Seller” shall mean BR Four Corners Orlando, DST, a Delaware statutory trust.

 

    	 	8	 

     

    

 

“Leases”
shall mean any leases with residential tenants of the Real Property, including each amendment or supplement thereto.

 

“Lists”
shall have the meaning assigned thereto in Section 3.1(g)(i).

 

“Loan Pay-Off
Wire Deadline” shall have the meaning assigned thereto in Section 2.3(a).

 

“Losses”
shall have the meaning assigned thereto in Section 11.1.

 

“Material
Casualty” shall have the meaning assigned thereto in Section 9.2(c).

 

“Material
Condemnation” shall have the meaning assigned thereto in Section 9.2(d).

 

“Monetary
Encumbrance” shall have the meaning assigned thereto in Section 8.3(a).

 

“New Operating
Budget” shall have the meaning assigned thereto in Section 3.4(b).

 

“New Property
Management Agreement” shall have the meaning assigned thereto in Section 3.4(a).

 

“New Property
Management Approval” shall have the meaning assigned thereto in Section 3.4(a).

 

“New Property
Manager” shall have the meaning assigned thereto in the Preamble.

 

“Objectionable
Contracts” shall have the meaning assigned thereto in Section 3.4(c).

 

“OFAC”
shall have the meaning assigned thereto in Section 3.1(g)(i).

 

“Owner’s
Policy” shall mean an ALTA Owner’s Policy of Title Insurance for the Property in an amount equal to the Purchase
Price for the Property insuring fee simple title to the Property and the Improvements located thereon, which shall except from
coverage only the Permitted Exceptions and shall specifically exclude all “preprinted” or “standard” title
exceptions, to the extent that same can be removed by Seller’s execution and delivery of a title affidavit in the form attached
to this Agreement.

 

“Patriot Act”
shall have the meaning assigned thereto in Section 3.1(g)(ii).

 

“Permitted
Exceptions” shall mean all of the following: (i) the matters set forth in the Title Commitment or the Updated Survey
or any matters newly disclosed on any subsequent updates to the Title Commitment or to the Updated Survey, in each case which are
approved or deemed approved by Purchaser pursuant to Article 8 of this Agreement, (ii) the rights of tenants, as tenants only without
options to purchase or rights of first refusal, under the Leases existing as of the Effective Date and any other Lease entered
into after the Effective Date in accordance with the terms of this Agreement, (iii) liens for current real estate taxes and special
assessments which are not yet due and payable as of the Closing Date, (iv) the Condominium Conversion Prohibition Agreement, (v)
standard pre-printed jacket exceptions contained in the Owner’s Policy, (vi) any exceptions caused by Purchaser or its Affiliates,
agents, representatives, consultants or employees, and (vii) local, state and federal laws, ordinances or governmental regulations,
including but not limited to, building, zoning and land use laws, ordinances and regulations, now or hereafter in effect relating
to the Property.

 

    	 	9	 

     

    

 

“Person”
shall mean a natural person, partnership, limited partnership, limited liability company, corporation, trust, estate, association,
unincorporated association or other legal entity.

 

“Personal
Property” shall have the meaning assigned thereto in Section 2.1(b)(3).

 

“PMA Termination”
shall have the meaning assigned thereto in Section 6.1(a)(iv).

 

“Property”
shall have the meaning assigned thereto in Recitals Paragraph A.

 

“Property
Group” shall mean, collectively, the following improved real properties:

 

(i)          The
Property;

 

(ii)         The
improved real property currently owned by Sovereign Seller and commonly known as The Sovereign Apartments, located at 5301 North
Tarrant Parkway, Fort Worth, Tarrant County, Texas 76244, and further described in the Three Property Purchase Agreement (the “Sovereign
Property”);

 

(iii)        The
improved real property currently owned by Leigh House Seller and commonly known as Leigh House Apartments, located at 2421 Landmark
Drive, Raleigh, Wake County, North Carolina 27607, and further described in the Three Property Purchase Agreement (the “Leigh
House Property”);

 

(iv)        The
improved real property currently owned by Preston View Seller and commonly known as Preston View Apartments, located at 1000 Stony
Court, Morrisville, Wake County, North Carolina 27560, and further described in the Three Property Purchase Agreement (the “Preston
View Property”);

 

(v)         The
Sorrel Phillips Creek Ranch Property; and

 

(vi)        The
Landings at Four Corners Property.

 

“Purchase
Price” shall have the meaning assigned thereto in Section 2.2(a).

 

“Purchaser”
shall have the meaning assigned thereto in the Preamble to this Agreement.

 

“Purchaser
Investigation” and “Purchaser Investigations” shall have the meanings assigned thereto in Section
7.1(a).

 

“Purchaser
Representatives” shall have the meaning assigned thereto in Section 7.1(a).

 

“Purchaser
Waived Breach” shall have the meaning assigned thereto in Section 11.3.

 

    	 	10	 

     

    

 

“Purchaser-Related
Entities” shall have the meaning assigned thereto in Section 11.3.

 

“Purchaser’s
Acquisition Lender” shall have the meaning assigned thereto in Section 5.4(b)(iii).

 

“Purchaser’s
Acquisition Loan” shall have the meaning assigned thereto in Section 5.4(b)(iii).

 

“Real Property”
shall mean the Land and the Improvements.

 

“Refundable
Security Deposits” shall mean all Security Deposits that are refundable to tenants pursuant to Leases and have not been
applied by Seller prior to the Closing Date.

 

“Related Property”
shall have the meaning assigned thereto in Section 2.1(b).

 

“Released
Parties” shall have the meaning assigned thereto in Section 7.6(a).

 

“Remaining
Properties” shall have the meaning assigned thereto in Section 14.27(a)(i).

 

“Rent Roll”
shall have the meaning assigned thereto in Section 3.1(k).

 

“Rents”
shall have the meaning assigned thereto in Section 10.1(a).

 

“Reporting
Person” shall have the meaning assigned thereto in Section 14.3(c).

 

“Representation
Conditions” shall have the meaning assigned thereto in Section 3.2(c)(i).

 

“Required
Cure Items” shall have the meaning assigned thereto in Section 8.1(d).

 

“RUBS”
shall have the meaning assigned thereto in Section 10.4(b).

 

“Security
Deposits” shall mean all security and escrow deposits received by Seller in connection with the Leases.

 

“Seller”
shall have the meaning assigned thereto in the Preamble.

 

“Seller Group”
shall mean, collectively:

 

(i)          Seller;

 

(ii)         BR
Carroll Keller Crossing, LLC, a Delaware limited liability company (“Sovereign Seller”);

 

(iii)        BR-TBR
Lake Boone NC Owner, LLC, a Delaware limited liability company, together with, if applicable, such entity’s permitted assignees
under the Three Property Purchase Agreement (“Leigh House Seller”);

 

    	 	11	 

     

    

 

(iv)        BR
Preston View, LLC, a Delaware limited liability company (“Preston View Seller”);

 

(v)         Sorrel
Phillips Creek Ranch Seller; and

 

(vi)        Landings
at Four Corners Seller.

 

“Seller Indemnified
Parties” shall have the meaning assigned thereto in Section 7.1(c).

 

“Seller Representations”
shall have the meaning assigned thereto in Section 11.1.

 

“Seller Waived
Breach” shall have the meaning assigned thereto in Section 11.7.

 

“Seller-Related
Entities” shall have the meaning assigned thereto in Section 11.2.

 

“Seller’s
Closing Certificate” shall have the meaning assigned thereto in Section 6.2(h).

 

“Seller’s
Core Deliveries” shall have the meaning assigned thereto in Section 3.1.

 

“Seller’s
Deliveries” shall have the meaning assigned thereto in Section 7.2(a).

 

“Seller’s
Knowledge” shall mean the actual knowledge of Seller based upon the actual knowledge of Ryan MacDonald, who is a principal
of Seller, or the actual knowledge of Sarah Girand, who is a Senior Vice President Asset Management for the Property, in each case
with respect to the Property, without any duty on the part of either such Person to conduct any independent investigation or make
any inquiry of any Person, and shall not be construed, by imputation or otherwise, to refer to the knowledge of any property manager
or broker, or to any other officer, agent, manager, representative or employee of Seller or any Affiliate of Seller. In no event
shall Purchaser have any personal claim against either such Person as a result of the reference thereto in this Agreement,
and Purchaser waives and releases all such claims which Purchaser now has or may later acquire against such Persons in connection
with the transactions contemplated in this Agreement.

 

“Sorrel Phillips
Creek Ranch Property” shall mean the improved real property currently owned by Sorrel Phillips Creek Ranch Seller and
commonly known as Sorrel Phillips Creek Ranch Apartments, located at 5050 FM423, Frisco, Denton County, Texas 75036, and further
described in the Sorrel Phillips Creek Ranch Purchase Agreement.

 

“Sorrel Phillips
Creek Ranch Purchase Agreement” shall mean that certain Purchase and Sale Agreement dated as of even date herewith, by
and between Sorrel Phillips Creek Ranch Seller, as seller, and Purchaser, as purchaser, with respect to the purchase and sale of
the Sorrel Phillips Creek Ranch Property.

 

“Sorrel Phillips
Creek Ranch Seller” shall mean BR Carroll Phillips Creek Ranch, LLC, a Delaware limited liability company.

 

“Surviving
Covenants” shall have the meaning assigned thereto in Section 11.1.

 

    	 	12	 

     

    

 

“Terminated
Property” shall have the meaning assigned thereto in Section 14.27(a)(i).

 

“Three Property
Purchase Agreement” shall mean that certain Purchase and Sale Agreement dated as of even date herewith, by and between
each of Sovereign Seller, Leigh House Seller, and Preston View Seller, as sellers, and Purchaser, as purchaser, with respect to
the purchase and sale of each of the Sovereign Property, the Leigh House Property, and the Preston View Property.

 

“Title Affidavit”
shall mean the affidavit and related title documentation described in Section 6.2(f) hereof.

 

“Title Commitment”
shall have the meaning assigned thereto in Section 8.1(a).

 

“Title Company”
shall mean First American Title Insurance Company.

 

“Title Cure
Period” shall have the meaning assigned thereto in Section 8.1(d).

 

“Title Objection
Notice” shall have the meaning assigned thereto in Section 8.1(c).

 

“Title Response
Notice” shall have the meaning assigned thereto in Section 8.1(c).

 

“Title Review
Period” shall have the meaning assigned thereto in Section 8.1(c).

 

“Transition
Period” shall mean the period beginning immediately upon the effective date of the New Property Management Agreement
and ending upon consummation of Closing (or, if applicable, the earlier termination of this Agreement).

 

“Updated Survey”
shall have the meaning assigned thereto in Section 8.1(b).

 

Article
2 

SALE, PURCHASE PRICE AND CLOSING

 

SECTION
2.1            Sale of Property.

 

(a)          On
the Closing Date and pursuant to the terms and subject to the conditions set forth in this Agreement, Seller shall sell to Purchaser,
and Purchaser shall purchase from Seller, the Property.

 

(b)          The
transfer of the Property to Purchaser shall include the transfer of all Related Property. For purposes of this Agreement, “Related
Property” shall mean all of Seller’s right, title and interest in and to the following:

 

(i)           all
of the buildings, structures, fixtures, parking facilities, and other improvements located on the Land (the “Improvements”);

 

    	 	13	 

     

    

 

(ii)         all
easements, licenses, covenants, privileges and other rights appurtenant to the Land or the Improvements and all right, title and
interest of Seller, if any, in and to all development rights and
any land lying in the bed of any street, road, avenue or alley, open or closed, in front of or adjoining the Land;

 

(iii)        all
furniture, furnishings, appliances, signs, carts, tools, supplies, fixtures, equipment and other personal property which are now,
or may hereafter prior to the Closing Date be, placed in or attached to the Land or
the Improvements and which are used solely in connection with the operation of the Real
Property, including all of the items of personal property listed on Schedule C
attached hereto (but not including items owned or leased by tenants or by Existing Property Manager,
or which are leased by Seller, or any Excluded Assets)
(collectively, the “Personal Property”);

 

(iv)        to
the extent they may be freely transferred by Seller under Applicable
Law without third-party consent (unless any such consent is obtained by Purchaser at Purchaser’s
sole cost and expense), all licenses, certificates of occupancy, permits, approvals and authorizations presently issued in connection
with the operation of all or any part of the Real Property as it is presently being operated;

 

(v)         to
the extent freely assignable by Seller without any third party’s consent
(unless any such consent is obtained by Purchaser at Purchaser’s sole cost and expense), all guaranties and warranties, if
any, in favor of Seller by any manufacturer or contractor in connection with construction or installation of equipment or any component
of the Improvements;

 

(vi)        all
Leases, together with all Refundable Security Deposits;

 

(vii)       all
other intangible property relating to the Real Property
or the Personal Property and not otherwise described or excluded herein, including, but not limited to, assignable telephone
exchanges; architectural drawings, plans and specifications, as-built drawings and advertising materials (in each case, solely
to the extent delivered to Purchaser prior to the Effective
Date or located on-site as of the Closing Date); and assignable development rights;

 

(viii)      all
Assumed Contracts pertaining to the Property, other than those terminated on or prior to the Closing Date pursuant to Section 3.4(c);
and

 

(ix)         resident
and tenant files for current residents as of the Closing Date and other non-confidential and non-proprietary records owned by Seller
and used in connection with the Real Property and located on-site as of the Closing Date.

 

(c)          Notwithstanding
anything to the contrary contained in this Agreement, it is expressly agreed by the parties hereto that the following items are
expressly excluded from the Property to be sold to Purchaser (collectively, the “Excluded Assets”):

 

(i)           all
Security Deposits that do not constitute Refundable Security Deposits (including, without limitation, non-refundable pet deposits
if any);

 

    	 	14	 

     

    

 

(ii)         all
right, title and interest in any purchase agreement or other closing document entered into in connection with Seller’s acquisition
of the Real Property, except to the extent that the rights or obligations under any such closing document “run with the land”
and so benefit or burden any of the Real Property;

 

(iii)        any
fixtures, personal property, equipment, trademarks or other intellectual property or other assets which are owned by (A) the supplier
or vendor under any Contract, (B) the tenant under any Lease or (C) Existing Property Manager;

 

(iv)        any
insurance claims or proceeds arising out of or relating to events that occur prior to the Closing subject to the terms of Section
9.2(a);

 

(v)         any
proprietary or confidential materials (including any materials relating to the background or financial condition of a present or
prior direct or indirect partner or member of Seller, but the Seller’s Deliveries shall not be deemed to be proprietary or
confidential), the internal books and records of Seller relating to contributions and distributions prior to Closing, any software
owned or licensed by Seller, the name “Bluerock” and any derivations thereof (including “BR”) and any trademarks,
trade names, brand marks, brand names, trade dress or logos relating thereto, the names “Carroll,” “ARIUM”
or any derivations thereof, and any trademarks, trade names, brand marks, brand names, trade dress or logos relating thereto, any
development bonds, letters of credit or other collateral held by or posted with any Governmental Authority or other third party
with respect to any improvement, subdivision or development obligations concerning any of the Real Property or any other real property,
any items listed on Schedule D attached hereto and made a part hereof, and any other intangible property that is not used
exclusively in connection with any of the Real Property; provided, however, that Purchaser shall have the right to maintain the
existing exterior signage at the Property for up to one hundred twenty (120) days following the Closing, so long as Purchaser covers
the existing signage and name “ARIUM” within thirty (30) days following the Closing;

 

(vi)        the
Existing Property Management Agreement;

 

(vii)       any
Objectionable Contracts terminated effective as of or prior to the Closing Date pursuant to Section 3.4(c);

 

(viii)      any
items leased to Seller;

 

(ix)         computer
software and computer files; and

 

(x)          cash
and cash equivalents (except to the extent prorated at Closing), and any reserves or other deposits funded or made in connection
with any financing encumbering the Property or Seller’s interests therein.

 

SECTION
2.2            Purchase Price.

 

(a)           The
consideration to be paid by Purchaser to Seller for the purchase of the Property shall be an amount equal to FORTY SIX MILLION
EIGHT HUNDRED FORTY SIX THOUSAND AND NO/100 DOLLARS ($46,846,000.00) (the “Purchase Price”). The Purchase Price
shall be paid by Purchaser to Seller on the Closing Date as follows:

 

    	 	15	 

     

    

 

(i)           Within
three (3) Business Days after the Effective Date, Purchaser shall deliver to Escrow Agent cash in an amount equal to ONE MILLION
EIGHT HUNDRED ONE THOUSAND SEVEN HUNDRED SIXTY NINE AND NO/100 DOLLARS ($1,801.769.00) (together with all accrued interest thereon,
the “Earnest Money”) in immediately available funds by wire transfer to the Earnest Money Escrow Account. If
the Earnest Money is not deposited by Purchaser as and when due and payable hereunder, Seller shall have the right in its sole
and absolute discretion to terminate this Agreement by written notice to Purchaser and Escrow Agent, whereupon no party shall have
any further rights or obligations hereunder except for those that expressly survive the termination of this Agreement.

 

(ii)         Purchaser
agrees and acknowledges that the entire Earnest Money shall be non-refundable to Purchaser from and after the Effective Date except
as otherwise specifically provided in this Agreement.

 

(iii)        Prior
to the Loan Pay-Off Wire Deadline on the Closing Date, or prior to the Closing Date, Purchaser shall deposit with the Escrow Agent,
by wire transfer of immediately available funds (through the escrow described in Section 2.3), the Purchase Price, as adjusted
by the application of the Earnest Money, and by the adjustments, prorations and credits provided herein. The amount to be paid
under this Section 2.2(a)(iii) is referred to herein as the “Closing Funds.”

 

(b)           Upon
delivery by Purchaser to Escrow Agent, the Earnest Money will be deposited by Escrow Agent in the Earnest Money Escrow Account,
and shall be held in escrow in accordance with the provisions of Section 14.4. All interest earned on the Earnest Money while held
by Escrow Agent shall be paid to the party to whom the Earnest Money is paid, except that if Closing occurs, Purchaser shall receive
a credit against the Purchase Price for such interest in accordance with the terms of this Agreement.

 

(c)           Notwithstanding
any other provision of this Agreement to the contrary, in the event this Agreement is terminated by either Seller or Purchaser
prior to the Closing (as hereinafter defined) pursuant to any right to do so in this Agreement, ONE HUNDRED DOLLARS ($100.00) of
the Earnest Money (the “Independent Contract Consideration”) shall be paid to Seller, which amount the parties
bargained for and agreed to as consideration for Purchaser’s right to inspect and purchase the Real Property pursuant to
this Agreement and for Seller’s execution, delivery and performance of this Agreement. The Independent Contract Consideration,
if paid, shall be in addition to and independent of any other consideration or payment provided in this Agreement and it is deemed
to have been fully earned as of the Effective Date.

 

(d)           No
adjustment shall be made to the Purchase Price except as explicitly set forth in this Agreement.

 

    	 	16	 

     

    

 

SECTION
2.3            Closing Procedure.

 

(a)          Closing.
The closing of the sale and purchase of the Property (the “Closing”) shall be held on the Closing Date, not
later than 3:00 pm (Eastern Time) (the “Loan Pay-Off Wire Deadline”) by mutually acceptable escrow arrangements
with Escrow Agent. There shall be no requirement that Seller and Purchaser physically attend the Closing, and all funds and documents
to be delivered at the Closing shall be delivered to the Escrow Agent unless the parties hereto mutually agree otherwise. Purchaser
and Seller hereby authorize their respective attorneys to execute and deliver to the Escrow Agent any additional or supplementary
instructions as may be necessary or convenient to implement the terms of this Agreement and to facilitate Closing; provided, however,
that such instructions shall be consistent with and merely supplement this Agreement and shall not in any way modify, amend or
supersede this Agreement.

 

(b)          Closing
Deliveries. Purchaser shall be required to deposit the Closing Funds with Escrow Agent on or prior to the Closing Date, and
in no event later than the Loan Pay-Off Wire Deadline. The parties shall endeavor to “pre-close” the transaction by
making commercially reasonable efforts to deliver to Escrow Agent, no later than the date which is one (1) Business Day prior to
the Closing Date, their respective Closing Documents pursuant to the terms of Article 6.

 

(c)          Payments
to Seller. All amounts payable to Seller under this Agreement, including the Earnest Money and the Purchase Price, shall be
paid at the Closing to Seller in accordance with its written instructions.

 

Article
3 

REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER

 

SECTION
3.1            Seller Representations and Warranties. Subject to
the information disclosed on those Seller’s Deliveries identified on Schedule 3.1 attached hereto and made a part
hereof (collectively, “Seller’s Core Deliveries”), and further subject to the Permitted Exceptions, Seller
hereby represents and warrants to Purchaser as follows with respect to itself or the Property, as applicable:

 

(a)          Formation;
Existence. Seller is a limited liability company duly formed, validly existing and in good standing under the laws of the State
of Delaware, and is duly qualified to transact business and is in good standing in the State of Florida.

 

(b)          Power
and Authority. Seller has all requisite power and authority to enter into this Agreement, to perform its obligations hereunder
and to consummate the transactions contemplated hereby. The execution, delivery and performance of this Agreement, the sale of
the Property and the consummation of the transactions provided for in this Agreement have been duly authorized by all necessary
action on its part. This Agreement has been duly executed and delivered by Seller and constitutes Seller’s legal, valid and
binding obligation, enforceable against Seller in accordance with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’ rights and by general principles of equity (whether
applied in a proceeding at law or in equity).

 

    	 	17	 

     

    

 

(c)          No
Consents. Seller has obtained all consents and permissions (if any) related to the transactions herein contemplated and required
under any organizational or governing documents of Seller or under covenant, agreement, encumbrance, law or regulation by which
Seller is bound.

 

(d)          No
Conflicts. Seller’s execution, delivery and compliance with, and performance of the terms and provisions of, this Agreement,
and the sale of the Property, will not conflict with or result in any violation of Seller’s organizational or governing documents.

 

(e)          Foreign
Person. Seller is not a “foreign person” as defined in Internal Revenue Code Section 1445 and the regulations issued
thereunder.

 

(f)          Bankruptcy.
Seller has not (i) made a general assignment for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy or suffered
the filing of any involuntary petition by Seller’s creditors, (iii) suffered the appointment of a receiver to take possession
of all, or substantially all, of Seller’s assets, which remains pending or (iv) suffered the attachment or other judicial
seizure of all, or substantially all of Seller’s assets, which remains pending.

 

(g)          Anti-Terrorism
Laws.

 

(i)           OFAC
Compliance. Seller is in compliance with the requirements of Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 23, 2001)
(the “Executive Order”) and other similar requirements contained in the rules and regulations of the Office
of Foreign Assets Control, Department of the Treasury (“OFAC”) and in any enabling legislation or other Executive
Orders or regulations in respect thereof (the Executive Order and such other rules, regulations, legislation, or orders are collectively
called the “Executive Orders”). Neither (a) Seller, any Affiliate of Seller nor any Person controlled by Seller;
nor (b) to the best of Seller’s Knowledge, after making due inquiry, any Person who owns a controlling interest in or otherwise
controls Seller; nor (c) to the best of Seller’s Knowledge, after making due inquiry, if Seller is a privately held entity,
any Person otherwise having a direct or indirect beneficial interest (other than with respect to an interest in a publicly traded
entity) in Seller; nor (d) any Person for whom Seller is acting as agent or nominee in connection with this investment, is a country,
territory, Person, organization, or entity named the Specially Designated Nationals and Blocked Persons List maintained by OFAC
pursuant to the Order and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules
and regulations of OFAC or pursuant to any other applicable Orders (the “Lists”), nor is a prohibited country,
territory, Person, organization, or entity under any economic sanctions program administered or maintained by OFAC (a “Forbidden
Entity”). For purposes of this paragraph, “Affiliate” means, with respect to a particular Person, any other
Person who is Controlled by, under common Control with, or in Control of, such particular Person; “Control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether
through the ownership of voting securities or other beneficial interests, by contract or otherwise; and “Person” means
any individual, company, trust or other legal entity of any kind whatsoever, or other organization, whether or not a legal entity.

 

    	 	18	 

     

    

 

(ii)         Patriot
Act. Seller is in compliance with all applicable anti-money laundering and anti-terrorist laws, regulations, rules, executive
orders and government guidance, including the reporting, record keeping and compliance requirements of the Bank Secrecy Act (“BSA”),
as amended by The International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001, Title III of the USA PATRIOT
Act (the “Patriot Act”), and other authorizing statutes, executive orders and regulations administered by OFAC,
and related Securities and Exchange Commission, SRO or other agency rules and regulations (collectively, the “Anti-Bribery,
Anti-Money Laundering and Anti-Terrorism Laws”), and has policies, procedures, internal controls and systems that are
reasonably designed to ensure such compliance.

 

(iii)        Senior
Foreign Political Figure. Seller is not a Senior Foreign Political Figure, or an Immediate Family Member or a Close Associate
of a Senior Foreign Political Figure, Seller is not controlled by a Senior Foreign Political Figure, or an Immediate Family Member
or a Close Associate of a Senior Foreign Political Figure, and, to the best of Seller’s Knowledge, after making due inquiry,
none of the direct or indirect owners of ten percent (10%) or more of Seller (other than any owner(s) of any interest(s) in a publicly-traded
entity) is a Senior Foreign Political Figure, or an Immediate Family Member or a Close Associate of a Senior Foreign Political
Figure. For purposes of this paragraph, “Senior Foreign Political Figure” means a senior official in the executive,
legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior official
of a major foreign political party, or a senior executive of a foreign government-owned corporation, and includes any corporation,
business or other entity that has been formed by, or for the benefit of, such senior official or executive; “Immediate
Family Member” of a Senior Foreign Political Figure typically includes the Senior Foreign Political Figure’s parents,
siblings, spouse, children and in-laws; and “Close Associate” of a Senior Foreign Political Figure means a person
who is widely and publicly known to maintain an unusually close relationship with Senior Foreign Political Figure, and includes
a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the Senior
Foreign Political Figure.

 

(h)           No
Litigation. Except as set forth on Schedule 3.1(h) attached hereto, Seller has not received written notice of and has
no Knowledge of any pending or threatened (in writing) action, suit, arbitration, administrative or judicial proceeding, or unsatisfied
order or judgment against Seller which pertains to the Property or the transaction contemplated by this Agreement, which in either
case, if adversely determined, would have an effect on the use, operation, or value of the Property or on Seller’s ability
to consummate the transaction contemplated herein; provided, however, this Section 3.1(h) shall not apply as to any pending or
future dispossessory or similar actions as to Property tenants.

 

(i)           No
Violations of Law. Except as set forth on Schedule 3.1(i) attached hereto, Seller has not received written notice from
any Governmental Authority of any violation of or non-compliance with, any Applicable Law affecting the Property or any portion
thereof, which remains unresolved.

 

(j)           Contracts.
To Seller’s Knowledge, except for the Contracts listed on attached Schedule 3.1(j), there are no other Contracts with
respect to the Property. Seller is not in default under any Contracts, subject to the running of any applicable notice and cure
periods under such Contracts. As of the Closing Date, there shall be no earned but unpaid management fees owed by Seller to any
third parties with respect to the Property.

 

    	 	19	 

     

    

 

(k)           Rent
Roll. The rent roll for the Property attached hereto as Schedule 3.1(k) (the “Rent Roll”) is a copy
of the Rent Roll that Seller relies upon and uses in the ordinary course of its business. In respect of each of the Leases, to
Seller’s Knowledge, except as otherwise set forth in the Rent Roll or delinquency report for the Property, Seller has not
received written notice of any material default by Seller under any of the Leases. Notwithstanding anything in this Agreement to
the contrary, Seller does not covenant or represent that tenants under Leases will not be in default under their respective Leases,
and the existence of any default by any tenant under its Lease shall not affect the obligations of Purchaser hereunder. No security
deposits have been paid by any tenants under the Leases which have not heretofore been returned, except as listed on the Rent Roll.

 

(l)           Environmental
Laws. Seller has not received written notice from any Governmental Authority that it has violated or is potentially liable
under any Environmental Laws.

 

(m)          No
Brokers. There are no broker’s or listing agreements or any broker’s or finder’s fees or commissions (whether
in connection with the Leases or otherwise) for which Purchaser shall be responsible after Closing. All leasing and brokerage commissions
with respect to the Leases (including renewals, extensions or expansions thereof whether pursuant to the express provisions of
the Leases or otherwise) have been paid in full, or will be paid by Closing.

 

(n)           Contractors.
All contractors, subcontractors, suppliers, architects, engineers, and others who have performed services, labor, or supplied material
in connection with Seller’s ownership, operation, maintenance, repair and management of the Property have been or at the
Closing will be paid in full and all liens arising therefrom (or claims which with the passage of time or notice or both, could
mature into liens) have been satisfied and released, or shall be satisfied and released by the Closing Date.

 

(o)           Operating
Statements. The operating statements for the Property that are provided as a part of Seller’s Core Deliveries are copies
of such documents that Seller uses and relies upon in the ordinary course of its business.

 

(p)           Licenses
and Permits. To Seller’s Knowledge, the operation of the Property as currently utilized does not violate any zoning,
subdivision, building or similar law, ordinance, order or regulation or any certificate of occupancy issued with respect to the
Property. To Seller’s Knowledge, no portion of the Property and no provision in any of the Leases is in violation of any
law, ordinance, order, regulation of any Governmental Authority or requirement or the requirements of any local board of fire underwriters
(or other body exercising similar functions).

 

(q)          Insurance.
Seller now has in full force and effect casualty, liability and business interruption insurance coverages in the amounts and types
reflected in the insurance certificate or certificates attached hereto as Schedule 3.1(q).

 

(r)           Tenants.
To Seller’s Knowledge, no tenant or any third party has any right or option to purchase the Property or any portion thereof.

 

    	 	20	 

     

    

 

(s)          Employees.
Seller has no employees.

 

(t)          No
Condemnation. There is no pending or, to Seller’s Knowledge, threatened (in writing) condemnation or similar proceeding
relating to or affecting the Property or any portion thereof, including, without limitation, Seller’s title to the Property
or any rights and interest in the Property, nor does Seller have any Seller’s Knowledge that any such action(s) is presently
contemplated. Seller agrees to give Purchaser prompt notice of any actual or threatened (in writing) condemnation or similar proceeding
between the Effective Date and the Closing.

 

(u)          Bonds
and Letters of Credit. There are no development bonds, letters of credit or other collateral held by or posted with any Governmental
Authority or other third party with respect to any improvement, subdivision or development obligations concerning any of the Real
Property.

 

SECTION 3.2            Amendments
to Schedules, Limitations on and Breaches of Representations and Warranties of Seller.

 

(a)           Seller
shall have the right to amend and supplement the schedules to this Agreement from time to time prior to the Closing by
providing a written copy of such amendment or supplement to Purchaser; provided, however, that any amendment or
supplement to the schedules to this Agreement shall have no effect for the purposes of determining whether a Seller breach
has occurred, but shall only establish such amendments and supplements as a Purchaser Waived Breach in the event Purchaser
proceeds to Closing following receipt of such information and shall therefore apply only as a defense to limit the
indemnification obligations of Seller in Article 11 of this Agreement for the inaccuracy or untruth of the representation or
warranty qualified by such amendment or supplement following Closing. Seller hereby acknowledges and agrees that Purchaser
expressly reserves and may freely exercise all rights and remedies available to it under Section 13.2 of this Agreement
following Seller’s amendment or supplement of the schedules and exhibits to this Agreement.

 

(b)          Notwithstanding
anything in this Agreement to the contrary, if the representations and warranties relating to the Rent Roll as set forth in Section
3.1(k) and the status of the tenants thereunder were true and correct in all material respects as of the Effective Date, no change
in circumstances or status of such tenants (e.g., defaults, bankruptcies, below market status or other adverse matters relating
to such tenants or a tenant’s exercise following the Effective Date of any Lease termination rights not caused by the acts
or omissions of Seller) occurring after the Effective Date shall permit Purchaser to terminate this Agreement or constitute grounds
for Purchaser’s failure to close or otherwise constitute a breach of any representation or warranty by Seller.

 

(c)          For
purposes of this Section 3.2:

 

(i)           “Representation
Conditions” shall mean that all representations or warranties of Seller were true, correct and complete in all material
respects when made.

 

    	 	21	 

     

    

 

(ii)         “Changed
Condition Threshold” shall mean a Changed Condition (as hereinafter defined) whose cost of cure will exceed $500,000.00
for the Property individually or for the Property Group collectively, as determined by a third party that is mutually acceptable
to the parties in their commercially reasonable discretion.

 

(d)           If,
after the Effective Date and prior to the Closing Date, Seller’s representations or warranties become untrue, inaccurate
or incorrect (a “Changed Condition”), Seller shall give Purchaser written notice thereof within five (5) Business
Days (but, in any event, prior to Closing) of Seller’s Knowledge of the Changed Condition (a “Changed Condition
Notice”).

 

(e)           If
the Representation Conditions have been satisfied, but the Changed Condition does not meet the Changed Condition Threshold, Seller
shall use commercially reasonable efforts to cause the Changed Condition to be cured at or prior to Closing. In the event that,
despite commercially reasonable efforts, Seller is unable to cure the Changed Condition by Closing, Seller shall not be in default
hereunder, but Purchaser shall be entitled to a credit against the Purchase Price at Closing equal to the estimated remaining cost
to cure the Changed Condition, which shall be determined by a third party that is mutually acceptable to the parties in their commercially
reasonable discretion.

 

(f)           If
the Representation Conditions have been satisfied and the Changed Condition meets or exceeds the Changed Condition Threshold, within
five (5) Business Days after the delivery of the Changed Condition Notice, Seller shall notify Purchaser in writing of whether
Seller (i) elects to cure the Changed Condition by Closing, or (ii) declines to cure the Changed Condition. If Seller elects to
cure the Changed Condition by Closing pursuant to this Section 3.2(f), then Purchaser shall be obligated to close on the Property
pursuant to the terms of this Agreement, and Seller shall be obligated to cure the Changed Condition at or prior to Closing. If
Seller does not timely make an election under this subsection (f), Seller shall be deemed to have declined to cure the Changed
Condition. If Seller declines to cure the Changed Condition, or is deemed to have declined to do so, then Purchaser shall have
five (5) Business Days thereafter, to elect, as its sole and exclusive remedy (and the Closing shall be automatically extended
to account for such five (5) Business Day period, if necessary), in its sole and absolute discretion, by written notice to Seller
within said five (5) Business Day period, (x) to continue with the purchase of the Property without adjustment of the Purchase
Price, or (y) to terminate this Agreement by providing written notice thereof to Seller. If Purchaser elects to terminate
this Agreement pursuant to this Section 3.2(f), the Earnest Money shall be immediately returned to Purchaser, and thereafter the
parties shall be released from further liability or obligation hereunder, except for those matters which specifically survive the
termination hereof. If Purchaser fails to notify Seller and Escrow Agent of its election to terminate this Agreement within said
five (5) Business Day time period provided above, Purchaser shall be deemed to have accepted the Changed Condition and to have
elected to purchase the Property without adjustment to the Purchase Price. If Seller elects to cure the Changed Condition by Closing,
but thereafter fails to do so, Seller shall be in material default under this Agreement, and all remedies set forth in Section
13.2 shall be available to Purchaser due to such default.

 

    	 	22	 

     

    

 

(g)           For
the avoidance of doubt, in the event a representation or warranty of Seller is untrue, incorrect or incomplete in any material
respect when made, or becomes untrue, incorrect or incomplete in any material respect on or after the Effective Date due to a breach
of any of Seller’s obligations or covenants under this Agreement, then Seller shall be in default under this Agreement (subject
to any applicable notice and cure rights), and all remedies set forth in Section 13.2 shall be available to Purchaser.

 

SECTION 3.3            Covenants
of Seller Prior to Closing.

 

(a)           From
the Effective Date until the Closing or earlier termination of this Agreement (or such earlier date as set forth below), Seller
or Seller’s agents shall:

 

(i)           Operation.
Operate and maintain the Property in a manner generally consistent with Seller’s past practices with respect to the Property
(including entering into new Leases), except that Seller shall not be required to make any capital improvements to the Real Property.

 

(ii)         Notices.
Notify Purchaser promptly upon receipt of written notices of (i) violation, litigation, arbitration proceeding or administrative
hearing (including condemnation) before any Governmental Authority which affects Seller or the Property, and is instituted after
the Effective Date; (ii) default with respect to any Contract; (iii) litigation commenced or threatened in writing against Seller
or Seller’s Property; (iv) litigation commenced or threatened in writing by Seller (other than residential tenant eviction
proceedings); and (v) any other material written notice or communication received by Seller which could have a material effect
on the operation of Seller’s Property or on the transactions contemplated under this Agreement.

 

(iii)        Insurance.
Keep the Property insured against fire and other hazards in such amounts and under such terms as are consistent with Seller’s
existing insurance program, provided that Seller may make adjustments in its insurance coverage for the Property which are consistent
with Seller’s Affiliates’ general insurance program for apartment properties as in effect from time to time.

 

(iv)        Performance
under Leases. Perform, or cause its agents to perform, in all material respects, all material obligations of landlord or lessor
under the Leases.

 

(v)         Leasing
Activity. Except for Leases or amendments to Leases entered into pursuant to renewal notices mailed prior to the Effective
Date, unless Purchaser agrees otherwise in writing (or, during the Transition Period, unless Purchaser or New Property Manager
agrees otherwise in writing, or New Property Manager actually enters into a non-compliant new lease or Lease renewal), any new
leases or renewals of existing leases for apartment units entered into by Seller after the Effective Date until the Closing or
earlier termination of this Agreement shall be on Seller’s standard apartment lease form for the Property, and shall be for
terms of no less than six (6) months and no more than thirteen (13) months. In all cases, Seller shall retain the discretion to
set rent rates, concessions and other terms of occupancy consistent with then-extant market conditions for the Property. After
the expiration of the Due Diligence Period, Purchaser shall have the right to participate in a weekly call with Seller and Existing
Property Manager or New Property Manager, as applicable, to discuss operation of the Property, which shall be scheduled by Seller
at the request of Purchaser, and which for the avoidance of doubt shall be a separate call from Seller’s operation calls
with its property manager.

 

    	 	23	 

     

    

 

(vi)        Contracts.
Comply with all obligations of Seller under the Contracts, and, unless Purchaser agrees in writing (or, during the Transition Period,
unless Purchaser or New Property Manager agrees otherwise in writing, or New Property Manager actually enters into such Contract),
not enter into any service or other new Contract (or renew any existing Contract) that will be binding on Purchaser or the Property
after Closing, other than Contracts necessary for emergency purposes in Seller’s commercially reasonable discretion.

 

(vii)       Conveyances
or Encumbrances of Property. Not sell, further pledge, encumber or otherwise transfer or dispose of all or any part of the
Property (except for (A) such items of fixtures and tangible personal property as become obsolete or are disposed of in the ordinary
course, and only if replaced by an item of like quality and functionality (unless the same is no longer necessary for the operation
of the Property, as determined by Seller in its commercially reasonable discretion), and (B) such other transfers and conveyances
as are specifically permitted under this Agreement).

 

(viii)      Updated
Rent Roll. From time to time, upon written request by Purchaser (but in no event more often than once per week), Seller shall
provide to Purchaser an updated Rent Roll with respect to the Property, which shall be in substantially the same format as the
Rent Roll attached hereto as a portion of Schedule 3.1(k).

 

(ix)         Property
Changes. Not request or consent to any change, variance or other modification to the zoning, permits, entitlements or development
incentives applicable to the Property, without Purchaser’s prior written consent which shall not be unreasonably withheld.

 

(x)          Condition
of Vacant Units. Make rent-ready all apartment units at the Property which become vacant five (5) or more Business Days prior
to the Closing, or to credit Purchaser at Closing in the amount of $750.00 for each apartment unit at the Property which is vacant
on the Closing Date, which was vacant five (5) or more Business Days prior to the Closing Date, and which has not been made rent-ready.
For purposes of this paragraph, “rent-ready condition” shall mean the condition in which Seller currently delivers
vacant units to new tenants at the Property in Seller’s ordinary course of business and operations, freshly painted and cleaned,
with all appliances, fixtures, and equipment therein in good working order.

 

(xi)         Intentionally
omitted.

 

(xii)        Legal
Compliance. Not use or occupy, or knowingly allow the use or occupancy of, the Property in any manner which violates any governmental
requirements or which constitutes waste or a public or private nuisance or which makes void, voidable or cancelable, or increases
the premium of, any insurance then in force with respect thereto. Seller shall maintain, or cause to be maintained, in full force
and effect all permits and licenses required to operate the Property and to execute Leases for the Property and collect rent thereunder.

 

(xiii)       Intentionally
omitted.

 

    	 	24	 

     

    

 

(xiv)      Estoppels.
Use commercially reasonable efforts to obtain and deliver to Purchaser any estoppels Purchaser may reasonably require in connection
with the Permitted Exceptions (each individually an “Estoppel,” and collectively the “Estoppels”);
provided, however, Seller shall not be obligated to incur any non de-minimis expense or fee to so obtain Estoppels other than may
be required by the terms of the Permitted Exception or to obtain any Estoppels from residential tenants at the Property.

 

(xv)       Alterations.
After the expiration of the Due Diligence Period, not perform, nor permit the performance of, any material alterations, renovations
or improvements to the Property without Purchaser’s prior written consent, which consent may be granted or withheld in Purchaser’s
sole discretion, except for alterations or improvements required to ensure the safety of its Property.

 

(xvi)      Transition.
Cooperate with Purchaser in transitioning ownership and management of the Property to Purchaser or Purchaser’s designee,
including, without limitation, ensuring that all rents from and after the Closing Date received by Seller are paid over to Purchaser
or its designee.

 

(b)           Existing
Property Management Agreement. If Seller has not previously terminated the Existing Property Management Agreement and entered
into the New Property Management Agreement, then Seller shall cause the Existing Property Management Agreement to be terminated
by the Closing.

 

(c)           Assumed
Contracts. If Purchaser delivers a written notice of objection to any Contract prior to the expiration of the Due Diligence
Period, then, to the extent a termination right in favor of Seller is provided for in such Contract, or if such Contract does not
prohibit termination, Seller shall cause Existing Property Manager to provide a notice of termination within two (2) Business Days
of the expiration of the Due Diligence Period to the vendor thereunder with respect to each such Contract to which Purchaser has
timely objected (collectively, the “Objectionable Contracts”); provided, however, that (i) Purchaser may not
object to any of the Contracts marked as “must assume” on Schedule 3.1(j) and shall assume the same at Closing
pursuant to the Bill of Sale and Assignment; (ii) Seller shall have no obligation to terminate any Contract which by its terms
is not terminable or which cannot be terminated without payment of an express termination fee or penalty, unless Purchaser agrees
in writing to pay such termination fee or penalty; (iii) if the termination of any Objectionable Contract cannot be made effective
upon the Closing Date (it being agreed and acknowledged that Seller shall not be obligated to pay any money to accomplish such
termination), then such Objectionable Contract shall be assumed by Purchaser at Closing pursuant to the Bill of Sale and Assignment
(together with all Assumed Contracts with respect to the Property that do not constitute Objectionable Contracts) for the remaining
period of such Contract until its effective date of termination; and (iv) Purchaser shall be responsible for any termination fees
payable with respect to the termination of any Objectionable Contracts. Notwithstanding the foregoing, Purchaser shall not be required
or entitled to assume: (x) any Contract that, by its terms, may not be assigned to and assumed by Purchaser without the consent
of a third party, unless such third party’s written consent is actually obtained at or before Closing; or (y) any Contract
that is not reflected on Schedule 3.1(j). All Contracts that Purchaser is required to assume or elects to assume hereunder
are collectively referred to herein as the “Assumed Contracts.”

 

    	 	25	 

     

    

 

(d)           Anti-Terrorism
Law. Seller shall take any actions that may be required to comply with the terms of the Anti-Bribery, Anti-Money Laundering
and Anti-Terrorism Laws, as amended, any regulations promulgated under the foregoing Applicable Laws, any sanctions program administered
by the U.S. Department of Treasury’s Office of Foreign Property Control or Financial Crimes Enforcement Network, or any other
Applicable Laws designed to combat corruption, bribery, terrorism, drug-trafficking or money laundering.

 

(e)           Exclusivity.
From the Effective Date until the Closing or earlier termination of this Agreement, neither Seller, nor any of its brokers, Affiliates
or agents, shall engage in discussions directly or through its brokers, agents or representatives or otherwise negotiate with any
Person or party, other than with Purchaser, in connection with the sale of the Property or any joint venture or similar transaction
relating to the Property.

 

(f)           Intentionally
omitted.

 

(g)           Excluded
Assets. Nothing in this Section 3.3 shall restrict Seller’s rights with respect to any Excluded Assets or give Purchaser
any approval, consent or other rights with respect thereto.

 

SECTION
3.4            Property Management During Transition Period.

 

(a)           New
Property Management Approval. Seller shall use best efforts to obtain its lender’s written approval (“New Property
Management Approval”) of the following no later than June 28, 2019: (i) the removal of Existing Property Manager
by termination of the Existing Property Management Agreement; and (ii) the appointment of New Property Manager, an affiliate of
Purchaser, as the new manager of the Property, by means of Seller’s and New Property Manager’s execution and delivery
of a new property management agreement in substantially the form of Exhibit G-1 attached hereto (the “New Property
Management Agreement”), with such material changes to the form as Seller’s lender may require and as Seller, Purchaser
and New Property Manager may approve in their reasonable discretion. Purchaser and New Property Manager shall reasonably cooperate
with Seller and Seller’s lender in connection with Seller’s pursuit of the New Property Management Approval, including
but not limited to entering into any commercially reasonable loan documentation required by Seller’s Lender as a condition
of the New Property Management Approval. Notwithstanding anything herein to the contrary, Seller shall be in material default hereunder
if New Property Management Approval is not obtained on or before August 1, 2019, and in such event Purchaser shall be entitled
to all remedies set forth in Section 13.2.

 

    	 	26	 

     

    

 

(b)          New
Property Management Agreement. Provided that this Agreement is not previously terminated, upon ten (10) days written notice
from Purchaser (provided that such notice may not be given until the New Property Management Approval is obtained), Seller shall
(i) cause the Existing Property Management Agreement to be terminated, and (ii) enter into the New Property Management Agreement
with New Property Manager. New Property Manager shall manage the Property during the Transition Period pursuant to the approved
operating budget attached hereto as Exhibit G-2 (the “New Operating Budget”), with such deviations as
are permitted under the terms of the New Property Management Agreement. For the avoidance of doubt, Seller agrees and acknowledges
that the New Operating Budget is not intended to impose minimum Property performance standards for New Property Manager’s
management of the Property during the Transition Period. Seller hereby waives any tortious interference claims under this Agreement
due to New Property Manager’s breach of any leasing covenants contained in the New Property Management Agreement to the extent
that such breach arises as a result of market degradation.

 

(c)          Relationship
Between This Agreement and New Property Management Agreement. Upon its execution and delivery, the New Property Management
Agreement will remain in effect for as long as this Agreement remains effective and has not been terminated. Specifically, Seller,
Purchaser and New Property Manager agree and acknowledge that, except as otherwise specifically provided in this Agreement, neither
Seller nor Property Manager shall have the right to terminate the New Property Management Agreement without cause during the Transition
Period. For the avoidance of doubt, Seller, Purchaser and New Property Manager, where applicable, further agree as follows:

 

(i)           Effect
of Termination of This Agreement. Seller, Purchaser and New Property Manager acknowledge and agree that, if either Seller or
Purchaser has the right to terminate this Agreement during the Transition Period (including due to the failure of a Closing condition
hereunder), and such party does terminate this Agreement during the Transition Period, then Seller and New Property Manager shall
have the right to terminate the New Property Management Agreement at any time thereafter, without prejudice to the respective rights
of Seller and New Property Manager under the New Property Management Agreement to pursue all remedies available to such party based
on any then-extant default thereunder.

 

(ii)         Effect
of New Property Manager Default under New Property Management Agreement. Upon the occurrence of a default by New Property Manager
under the New Property Management Agreement that would entitle Seller to terminate the New Property Management Agreement (after
the expiration of any applicable notice and/or cure periods under the New Property Management Agreement), then such default shall
also constitute a default by Purchaser under Section 13.1 of this Agreement. Purchaser and New Property Manager acknowledge and
agree that if Seller elects to terminate this Agreement pursuant to such Section 13.1, then Seller shall have the right to terminate
the New Property Management Agreement at any time thereafter, and that thereafter Seller shall have the rights and remedies available
to it both under Section 13.1 hereof and under the Property Management Agreement.

 

(iii)        Effect
of Seller Default under New Property Management Agreement. Upon the occurrence of a default by Seller under the New Property
Management Agreement that would entitle New Property Manager to terminate it (after the expiration of any applicable notice and/or
cure periods), then such default shall also constitute a default by Seller under Section 13.2 of this Agreement. Seller acknowledges
that if Purchaser elects to terminate this Agreement pursuant to such Section 13.2, then the New Property Management Agreement
shall terminate thirty (30) days thereafter, New Property Manager shall have the rights and remedies available to it upon termination
due to a default by Seller under the New Property Management Agreement, and Purchaser shall also have the remedies available to
it under such Section 13.2.

 

    	 	27	 

     

    

 

Article
4 

REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER

 

SECTION 4.1            Representations
and Warranties of Purchaser. Purchaser hereby represents and warrants to Seller as follows:

 

(a)           Formation;
Existence. Purchaser is a limited liability company duly formed, validly existing and in good standing under the laws of the
State of Delaware.

 

(b)           Power;
Authority. Purchaser has all requisite power and authority to enter into this Agreement, to perform its obligations hereunder
and to consummate the transactions contemplated hereby. The execution, delivery and performance of this Agreement, the purchase
of the Property and the consummation of the transactions provided for herein have been duly authorized by all necessary action
on the part of Purchaser. This Agreement has been duly executed and delivered by Purchaser and constitutes the legal, valid and
binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, except as such enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights and by general
principles of equity (whether applied in a proceeding at law or in equity).

 

(c)           No
Consents. No consent, license, approval, order, permit or authorization of, or registration, filing or declaration with, any
court, administrative agency or commission or other Governmental Authority, is required to be obtained or made in connection with
the execution, delivery and performance of this Agreement by Purchaser or any of Purchaser’s obligations in connection with
the transactions required or contemplated hereby (other than the New Property Management Approval, as to the transactional matters
associated with such approval).

 

(d)           No
Conflicts. Purchaser’s execution, delivery and compliance with, and performance of the terms and provisions of, this
Agreement, and the purchase of the Property, will not (i) conflict with or result in any violation of its organizational documents,
(ii) conflict with or result in any violation of any provision of any bond, note or other instrument of indebtedness, contract,
indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which Purchaser is a party in its
individual capacity, or (iii) violate any Applicable Law relating to Purchaser or its assets or properties, except, in each case,
for (A) any conflict or violation which will not materially adversely affect Purchaser’s ability to consummate the transactions
contemplated by this Agreement, and (B) the transactional matters subject to prior issuance of the New Property Management Approval.

 

(e)           Bankruptcy.
Purchaser has not (i) made a general assignment for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy or
suffered the filing of any involuntary petition by Purchaser’s creditors, (iii) suffered the appointment of a receiver to
take possession of all, or substantially all, of Purchaser’s assets, which remains pending, or (iv) suffered the attachment
or other judicial seizure of all, or substantially all of Purchaser’s assets, which remains pending.

 

    	 	28	 

     

    

 

(f)           Anti-Terrorism
Laws. Neither Purchaser nor to Purchaser’s knowledge any beneficial owner of Purchaser: (i) is listed in the Executive
Order and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations
of OFAC or pursuant to any other applicable Orders; (ii) is a person or entity who has been determined by competent authority to
be subject to the prohibitions contained in the Executive Orders; (iii) to Purchaser’s knowledge, is owned or controlled
by, or acts for or on behalf of, any person or entity on the Lists or any other person or entity who has been determined by competent
authority to be subject to the prohibitions contained in the Executive Order, or (iv) is or has engaged in any dealings or transactions,
or is otherwise associated, with any Forbidden Entity. The foregoing does not apply to any person or entity to the extent that
such person’s interest in Purchaser is through a US publicly traded entity.

 

SECTION 4.2            Covenants
of Purchaser. From the Effective Date until the Closing or earlier termination of this Agreement, Purchaser or Purchaser’s
agents shall take any actions that may be required to comply with the terms of the Anti-Bribery, Anti-Money Laundering and Anti-Terrorism
Laws, as amended, any regulations promulgated under the foregoing Applicable Laws, any sanctions program administered by the U.S.
Department of Treasury’s Office of Foreign Property Control or Financial Crimes Enforcement Network, or any other Applicable
Laws designed to combat corruption, bribery, terrorism, drug trafficking or money laundering.

 

Article
5 

CONDITIONS PRECEDENT TO CLOSING

 

SECTION 5.1            Conditions
Precedent to Seller’s Obligations. Seller’s obligation to consummate the transfer of the Property to Purchaser
on the Closing Date is subject to the satisfaction (or waiver by Seller in writing) as of Closing of the following conditions;
provided, however, if the failure of any such condition is due to a default by Purchaser, Seller shall have the rights and remedies
provided in Section 13.1:

 

(a)           Each
of the representations and warranties made by Purchaser in this Agreement shall be true and correct in all material respects when
made and on and as of the Closing Date as though such representations and warranties were made on and as of the Closing Date (unless
such representation or warranty is made on and as of a specific date, in which case it shall be true and correct in all material
respects as of such date).

 

(b)           Purchaser
shall have performed or complied in all material respects with each obligation and covenant required by this Agreement to be performed
or complied with by Purchaser for Closing.

 

(c)           Seller
or Escrow Agent shall have received all of the documents required to be delivered by Purchaser under Section 6.1.

 

    	 	29	 

     

    

 

(d)           Seller
or Escrow Agent shall have received the Purchase Price in accordance with Section 2.2 and all other amounts due to Seller hereunder.

 

(e)           Subject
to Section 14.27 hereof, Section 14.27 of the Three Property Purchase Agreement, Section 14.27 of the Sorrel Phillips Creek Ranch
Purchase Agreement, and Section 14.27 of the Landings at Four Corners Purchase Agreement, the transactions contemplated by such
Affiliated Purchase Agreements shall have been consummated in accordance with the terms and conditions thereof.

 

SECTION 5.2            Conditions
Precedent to Purchaser’s Obligations. Purchaser’s obligation to purchase and pay for the Property on the Closing
Date is subject to the satisfaction (or waiver by Purchaser in writing) as of Closing of the following conditions; provided, however,
if the failure of any such condition is due to a default by Seller, Purchaser shall have the right and remedies provided in Section
13.2:

 

(a)           Each
of the representations and warranties made by Seller in this Agreement shall be true and correct in all material respects when
made and on and as of the Closing Date as though such representations and warranties were made on and as of the Closing Date (unless
such representation or warranty is made on and as of a specific date, in which case it shall be true and correct in all material
respects as of such date), subject, in all respects, to the rights and obligations of the parties set forth in Section 3.2 of this
Agreement.

 

(b)           Seller
shall have performed or complied in all material respects with each obligation and covenant required by this Agreement to be performed
or complied with by Seller for Closing.

 

(c)           Subject
to Section 14.27 hereof, Section 14.27 of the Three Property Purchase Agreement, Section 14.27 of the Sorrel Phillips Creek Ranch
Purchase Agreement, and Section 14.27 of the Landings at Four Corners Purchase Agreement, the transactions contemplated by such
Affiliated Purchase Agreements shall have been consummated in accordance with the terms and conditions thereof.

 

(d)           The
Title Company shall be prepared and irrevocably committed to issue an Owner’s Policy for the Property in the full amount
of the Purchase Price, subject only to the Permitted Exceptions; provided, however, if the Title Company is unable or unwilling
to issue the Owner’s Policy, before Purchaser shall have the right to terminate this Agreement under this subsection (d),
the parties shall first make commercially reasonable efforts to secure the Owner’s Policy from another title insurer satisfactory
to Purchaser, and if necessary the Closing Date shall be extended by a period of up to five (5) Business Days to attempt to arrange
such replacement coverage.

 

SECTION 5.3            Waiver
of Conditions Precedent. The occurrence of the Closing shall constitute conclusive evidence that Seller and Purchaser have
respectively waived any conditions which are not satisfied as of the Closing.

 

    	 	30	 

     

    

 

SECTION 5.4            Failure
of Conditions Precedent.

 

(a)          General.
In the event that any condition precedent to Closing has not been timely satisfied, then the party whose condition to Closing has
not been satisfied shall have the right to terminate this Agreement by written notice delivered to the other party at Closing.
In connection with any such termination, Purchaser shall be entitled to a return of the Earnest Money (less the Independent Contract
Consideration), and Seller and Purchaser shall be released from further obligation or liability hereunder (except for those obligations
and liabilities which expressly survive termination); provided, however, nothing herein shall be deemed to constitute a waiver
of any right or remedy which the parties may have under Article 13.

 

(b)          Certain
Failures of Purchaser Conditions Precedent. Notwithstanding Section 5.4(a) hereof, the following terms shall apply beginning
on July 15, 2019, if, and only if, (A) a Purchaser condition precedent under Section 5.2 is not timely satisfied, (B) a
Seller default has not also occurred under Section 13.2 of this Agreement (in which event the Seller default provisions under this
Agreement shall apply), and (C) Purchaser has the right to terminate this Agreement, and does terminate this Agreement, due to
the condition failure:

 

(i)           Escrow
Agent shall return the Earnest Money (less the Independent Contract Consideration) to Purchaser.

 

(ii)         Seller
shall reimburse Purchaser for up to $75,000.00 of Purchaser’s actual, out of pocket expenses incurred for the transaction.

 

(iii)        If
Purchaser has deposited any funds with its mortgage lender (“Purchaser’s Acquisition Lender”) as a rate
lock deposit with respect to Purchaser’s acquisition financing (“Purchaser’s Acquisition Loan”)
pursuant to a final written mortgage loan commitment from Purchaser’s Acquisition Lender, and such mortgage lender refuses
to return all or substantially all of such deposit, then Seller shall also reimburse Purchaser for Purchaser’s actual out
of pocket losses for the non-refundable portion of such deposit, not to exceed one percent (1.0%) of the amount of Purchaser’s
Acquisition Loan as shown in Purchaser’s Acquisition Lender’s written loan commitment.

 

(iv)        Upon
completion of subsections (i) through (iii) above, Seller and Purchaser shall be released from further obligation or liability
hereunder (except for those obligations and liabilities which expressly survive termination).

 

Article
6 

CLOSING DELIVERIES

 

SECTION 6.1            Purchaser’s
Closing Deliveries. Purchaser shall deliver the following to the Escrow Agent for Closing, in compliance with Section 2.3
hereof:

 

(a)          With
respect to the Property:

 

(i)           Purchaser’s
duly executed counterpart to a Bill of Sale and Assignment of Leases, Contracts and General Intangibles (the “Bill of
Sale and Assignment”) for the Property, in substantially the form of Exhibit A attached hereto;

 

    	 	31	 

     

    

 

(ii)         Intentionally
Deleted;

 

(iii)        Purchaser’s
duly executed counterpart to a Prohibition Against Condominium Conversion Agreement for the Property (the “Condominium
Conversion Prohibition Agreement”), in substantially the form of Exhibit C attached hereto;

 

(iv)        New
Property Manager’s duly executed counterpart of a Termination Agreement with regards to the New Property Management Agreement
(the “PMA Termination”); and

 

(v)         Purchaser’s
duly executed counterpart to the Closing Statement.

 

(b)          With
respect to the transactions contemplated hereunder:

 

(i)           The
Purchase Price as specified in Section 2.2, as adjusted by the application of the Earnest Money, and by the adjustments, prorations
and credits provided herein;

 

(ii)         to
the extent that same are required to be executed by Purchaser under Applicable Law, all transfer tax returns or forms required
for the conveyance of the Property, in each case, as prepared by Seller in coordination with and reasonably acceptable to Purchaser
and duly executed by Purchaser;

 

(iii)        such
evidence as the Title Company may reasonably require as to the authority of the Person or Persons executing documents on behalf
of Purchaser, and as to the legal existence and good standing of Purchaser;

 

(iv)        a
certificate dated as of the Closing Date and duly executed by Purchaser, stating that the representations and warranties of Purchaser
contained in Article 4 of this Agreement are true and correct in all material respects as of the Closing Date; and

 

(v)         such
additional documents as shall be reasonably requested by the Escrow Agent or the Title Company to consummate the transaction contemplated
by this Agreement; provided, however, that in no event shall Purchaser be required to indemnify the Title Company, the Escrow Agent,
Seller, or any other party pursuant to any such documents, or undertake any other material liability not expressly contemplated
in this Agreement, unless Purchaser elects to do so in its sole discretion.

 

SECTION 6.2            Seller’s
Closing Deliveries. Seller shall deliver the following to the Escrow Agent for Closing, in compliance with Section 2.3 hereof:

 

(a)           Deed.
A Florida special warranty deed in substantially the form of Exhibit D attached hereto duly executed by Seller for the Real
Property, together with, as applicable, a quitclaim deed for the Real Property in accordance with Section 8.1(b) hereof;

 

(b)           Condominium
Conversion Prohibition Agreements. The Condominium Conversion Prohibition Agreement, as duly executed by Seller;

 

    	 	32	 

     

    

 

(c)           Bill
of Sale and Assignment. The Bill of Sale and Assignment, as duly executed by Seller;

 

(d)           Tenant
Notice. A duly executed notice letter to the tenants at the Property (the “Tenant Notice”), in substantially
the form of Exhibit B attached hereto. Purchaser shall promptly deliver the same to all tenants following the Closing;

 

(e)           Vendor
Notices. To the extent not already provided to Purchaser, letters to the vendors under Assumed Contracts for the Property,
duly executed by Seller;

 

(f)           Title
Affidavit. A Florida Owner’s Affidavit in substantially the form of Exhibit E attached hereto, duly executed by
Seller (the “Title Affidavit”);

 

(g)           FIRPTA
Affidavit. A duly executed and notarized affidavit from Seller that Seller is not a “foreign person” within the
meaning of the Foreign Investment in Real Property Tax Act of 1980, as amended;

 

(h)           Seller’s
Closing Certificate. A duly executed certificate in the form attached hereto as Exhibit F (the “Seller’s
Closing Certificate”) from Seller dated as of the Closing Date, stating that the representations and warranties of Seller
contained in Article 3 of this Agreement are true and correct in all material respects as of the Closing Date;

 

(i)            Intentionally
omitted;

 

(j)            Closing
Statement. Seller’s duly executed counterpart to the Closing Statement;

 

(k)           Rent
Roll. An updated Rent Roll for the Property, dated no earlier than the date that is five (5) Business Days prior to the Closing
Date (which Seller’s property manager may provide), for purposes of preparing the Closing Statement and attaching as an exhibit
to the Seller’s Closing Certificate and to the Title Affidavit;

 

(l)            Transfer
Tax Forms. All transfer tax returns or forms required for the conveyance of the Property, in each case as prepared by Seller
in coordination with Purchaser and, to the extent required under Applicable Law, duly executed Seller;

 

(m)           Leases.
To the extent in Seller’s possession or reasonable control, originals (or copies if the Property maintains the Leases solely
through an electronic database) of the Leases, which requirement may be satisfied by delivery at the on-site property management
office for the Property, rather than by delivery to the Escrow Agent;

 

(n)           Seller
Authority Documents. Such evidence as the Title Company may reasonably require as to the authority of the Person or Persons
executing documents on behalf of Seller, and as to the legal existence and good standing of Seller;

 

    	 	33	 

     

    

 

(o)          Broker
Documents. If required by the Title Company for a given Property, a broker’s lien waiver or affidavit regarding such
Property from the Broker or Brokers, and/or an affidavit regarding commercial real estate brokers from the applicable Seller, in
form and substance reasonably acceptable to the Title Company;

 

(p)          Possession.
Possession of the Property, subject only to the Permitted Exceptions;

 

(q)          PMA
Termination. Seller’s duly executed counterpart of the PMA Termination; and

 

(r)           Miscellaneous.
Such additional documents as shall be reasonably requested by the Escrow Agent or the Title Company to consummate the transaction
contemplated by this Agreement; provided, however, that in no event shall Seller be required to indemnify the Title Company, the
Escrow Agent, Purchaser, or any other party pursuant to any such documents, or undertake any other material liability not expressly
contemplated in this Agreement, unless Seller elects to do so in its sole discretion.

 

Article
7 

INSPECTIONS; DUE DILIGENCE; RELEASE

 

SECTION 7.1            Inspections.

 

(a)          Purchaser
Investigations. During the Due Diligence Period and until Closing or the earlier termination of this Agreement, Purchaser and
Purchaser’s partners, agents, employees, lenders, investors, property managers, representatives, attorneys, accountants,
engineers, contractors, consultants and licensees (collectively, “Purchaser’s Representatives”) shall
have the right to enter upon the Property and make such nondestructive on-site investigations, inspections, audits, analyses, appraisals,
studies and tests, including, without limitation, surveys and engineering studies and reviewing Seller’s Deliveries (individually,
a “Purchaser Investigation” and collectively, the “Purchaser Investigations”), as Purchaser
deems necessary or advisable; provided, however, that Purchaser shall not be permitted to conduct (i) any physically invasive inspection,
sampling or test, or (ii) testing or sampling required for a Phase II environmental site assessment at the Property without Seller’s
prior written consent, which shall not be unreasonably withheld, conditioned or delayed to the extent any Phase I environmental
assessment identifies a recognized environmental condition (meeting the ASTM E1527-13 standard) and recommends further testing,
but may otherwise be withheld in Seller’s sole discretion.

 

(b)          Procedures.
Purchaser and Purchaser’s Representatives shall conduct all Purchaser Investigations strictly in accordance with the following
procedures:

 

(i)           All
Purchaser Investigations at the Property shall be conducted during the normal business hours of the Property on Business Days,
unless Seller otherwise approves in writing and upon appropriate notice to tenants as required under any Leases.

 

    	 	34	 

     

    

 

(ii)         Purchaser
shall deliver to Seller a written notice of Purchaser’s intent to perform any Purchaser Inspection at the Property, in each
case at least one (1) Business Day prior to the intended date of entry (notice to Brian Rideout by electronic mail at brideout@bluerockmi.com
shall satisfy this notice requirement). Each such notice shall specify the Property and shall provide (A) the intended date
of entry and the portion of the Property to be entered, (B) a description of the proposed Purchaser Investigations, including,
without limitation, a list of contractors who will be performing the proposed Purchaser Investigations, and (C) in the instance
of a physically invasive test otherwise permitted hereunder, a copy of Purchaser’s testing plan outlining the tests that
Purchaser intends to perform, and such other information reasonably requested by Seller in connection with such physically invasive
testing. Neither Purchaser nor any Purchaser’s Representative shall enter any portion of any Property until Seller has given
written approval of both the request and any testing plan, which approval may be given by electronic mail to Jamie Shanks at jshanks@carterhaston.com.

 

(iii)        A
representative of Seller shall have the right, but not the obligation, to be present during any Purchaser Investigation.

 

(iv)        Neither
Purchaser nor any Purchaser’s Representative shall interfere unreasonably with the use, occupancy or enjoyment rights of
any tenants, occupants, invitees, employees or contractors of Seller at the Property or of any such tenants’ or occupants’
employees, contractors, customers or guests.

 

(v)         Purchaser
shall have no right to make inquiries of tenants, occupants, invitees, employees or contractors of Seller without Seller’s
prior written consent, which may be conditioned upon an agent or representative of Seller accompanying Purchaser or Purchaser’s
Representatives during such inquiries.

 

(vi)        Purchaser
shall have the right to make customary inquiries to confirm existing factual matters or to request publicly available information,
in either case, with regard to the Property, arising in connection with (A) a Phase I environmental site assessment, (B) a third-party
zoning compliance report, (C) a zoning compliance letter from applicable governmental authorities, (D) a request for copies of
permits and licenses, including certificates of occupancy, (E) a request to the applicable Governmental Authorities as to the status
of the existing development rights or entitlements with respect to the Property, or (F) taxes attributable to the Property. Notwithstanding
the foregoing, neither Purchaser nor any Purchaser Representative shall affirmatively request any governmental or quasi-governmental
agency to undertake any action which would or could lead to a hearing before any governmental or quasi-governmental agency, or
which would or could lead to a note or notice of violation of law or municipal ordinance, order or requirement imposed by such
an agency, at the Property, or any change in zoning, licenses, permits or other entitlements or any investigation or restriction
on the use of the Property or any part thereof by such an agency, except to the extent that Seller provides prior written consent
to such inquiries in Seller’s sole discretion.

 

(vii)       Following
each entry by Purchaser or any Purchaser’s Representative with respect to any Purchaser Investigation, Purchaser shall promptly
restore, or cause to be restored, the Property to substantially the same condition as existed immediately prior to the Purchaser
Investigation. Except in connection with radon testing, Purchaser shall not have the right to submit any samples or other materials
to any testing laboratory or similar facility without obtaining the prior written consent of Seller in Seller’s sole discretion.
The restoration provisions of this subsection shall survive the termination or expiration of this Agreement.

 

    	 	35	 

     

    

 

(viii)      Prior
to entering onto the Property to conduct any Purchaser Investigation, Purchaser shall obtain (or shall cause Purchaser’s
Representatives to obtain), and during the period of all Purchaser Investigations shall maintain or cause to be maintained, at
the sole expense of Purchaser or Purchaser’s Representatives, with respect to the Property: (A) commercial general liability
(“CGL”) insurance, issued on a form at least as broad as Insurance Services Office (“ISO”)
Commercial General Liability Coverage “occurrence” form CG 00 01 10 01 or another “occurrence” form providing
equivalent coverage, including contractual liability coverage with respect to Purchaser’s obligations under this Agreement
and personal injury liability coverage, with limits of not less than Two Million Dollars ($2,000,000) for any one occurrence and
Five Million Dollars ($5,000,000) in the aggregate; (B) comprehensive automobile liability insurance (covering any automobiles
owned or operated by Purchaser or Purchaser’s Representatives) issued on a form at least as broad as ISO Business Auto Coverage
form CA 00 01 07 97 or other form providing equivalent coverage; (C) worker’s compensation insurance, and (D) employer’s
liability insurance. Such automobile liability insurance shall be in an amount not less than One Million Dollars ($1,000,000) for
each accident. Such worker’s compensation insurance shall carry minimum limits as defined by the law of the jurisdiction
in which the applicable Property is located (as the same may be amended from time to time). Such employer’s liability insurance
shall be in an amount not less than Two Million Dollars ($2,000,000) for each accident, Two Million Dollars ($2,000,000) disease-policy
limit, and Two Million Dollars ($2,000,000) disease-each employee. Seller (and, upon Seller’s request, the Property Manager
and Property mortgagee(s)) shall be named as additional insureds on the CGL and automobile liability insurance policies with respect
to liability arising out of the named insured’s acts or omissions relating to the Property. Each such insurance policy shall
be subject to Seller’s prior written approval, not to be unreasonably withheld or delayed (for avoidance of doubt, such written
approval shall be deemed given by Seller allowing Purchaser and Purchaser’s Representatives on the Property to the extent
the insurance policy otherwise satisfies the coverage types and amounts set forth in this Section 7.1(b)(viii)). Prior to making
any entry upon the Property, Purchaser or Purchaser’s Representatives shall furnish to Seller a certificate of insurance
evidencing the foregoing coverages for the Property, which certificate of insurance shall be in form and substance reasonably satisfactory
to Seller.

 

(ix)         Purchaser
agrees (A) to promptly pay when due all costs associated with the Purchaser Investigations and (B) not to cause, permit
or suffer any lien or encumbrance to be asserted against the Property related to the Purchaser Investigations. The provisions of
this subsection shall survive the termination or expiration of this Agreement.

 

(x)           Purchaser
shall comply with all Applicable Law which might in any way relate to the Purchaser Investigations.

 

(xi)         Neither
Purchaser nor any Purchaser’s Representative shall damage any part of the Property or any personal property owned or held
by any tenant, occupant or third party.

 

    	 	36	 

     

    

 

(c)           Indemnification.
Purchaser shall indemnify, hold harmless and defend Seller, and its members, officers, managers, employees and shareholders (collectively,
the “Seller Indemnified Parties”) from and against any and all Claims actually incurred by Seller or any other
indemnified party and caused by and arising out of (i) any Purchaser Investigation (i.e., without regard to the phrase “nondestructive”
included in the definition of Purchaser Investigation) conducted by or at the behest of Purchaser and/or any Purchaser’s
Representative, or (ii) any breach by Purchaser and/or any Purchaser’s Representative of the terms of this Section 7.1. Notwithstanding
the foregoing, Purchaser shall have no liability for (and no obligation to indemnify, defend and/or hold any of the Seller Indemnified
Parties harmless from) Claims arising from (A) pre-existing conditions merely discovered by Purchaser Investigations and not exacerbated
by Purchaser or Purchaser’s Representatives (and in any event, only to the extent of such exacerbation), (B) the gross negligence
or intentional wrongdoing of Seller, the Seller Indemnified Parties, or any Property’s tenants, occupants and invitees (other
than Purchaser and Purchaser’s Representatives), or (C) any consequential, punitive, special or other similar damages. For
the avoidance of doubt, Purchaser acknowledges that this Section 7.1(c) also applies to Claims arising during the portion of the
Due Diligence Period that preceded the Effective Date of this Agreement. This Section 7.1(c) shall survive Closing or any
termination of this Agreement.

 

(d)           WAIVER
AND RELEASE. PURCHASER, FOR ITSELF AND ALL OF PURCHASER’S REPRESENTATIVES, HEREBY WAIVES AND RELEASES EACH OF SELLER
AND ITS MEMBERS, OFFICERS, MANAGERS, EMPLOYEES AND SHAREHOLDERS FROM ALL CLAIMS RESULTING DIRECTLY
OR INDIRECTLY FROM ACCESS TO, ENTRANCE UPON, OR INSPECTION OF THE PROPERTY BY PURCHASER OR ANY OF PURCHASER’S REPRESENTATIVES
FROM AND AFTER THE COMMENCEMENT OF THE DUE DILIGENCE PERIOD, UNLESS ARISING FROM THE WRONGFUL MISCONDUCT OR GROSS NEGLIGENCE OF
SELLER. THE PROVISIONS OF THIS SECTION 7.1(D) SHALL SURVIVE CLOSING OR ANY TERMINATION OF THIS AGREEMENT. FOR THE AVOIDANCE OF
DOUBT, PURCHASER ACKNOWLEDGES THAT THIS SECTION 7.1(D) ALSO APPLIES TO ALL CLAIMS ARISING DURING THE PORTION OF THE DUE DILIGENCE
PERIOD THAT PRECEDED THE EFFECTIVE DATE OF THIS AGREEMENT.

 

SECTION 7.2            Seller’s
Deliveries.

 

(a)           To
the extent that it has not already done so under the Access Agreement, Seller will make available to Purchaser and Purchaser’s
Representatives for their review, in an online data room and/or at the Property, items and information pertaining to the Property
set forth on Schedule B attached hereto (collectively referred to as the “Seller’s
Deliveries”). Except as otherwise set forth in this Agreement, the Seller’s Deliveries are made available
to Purchaser without representation or warranty by, or recourse against, Seller, it being agreed that Purchaser shall not rely
on such documents and shall independently verify the truth, accuracy and completeness of said information and/or items contained
therein.

 

    	 	37	 

     

    

 

(b)           If
this Agreement is terminated prior to Closing, within seven (7) days from the date of Seller’s request, Purchaser shall return
or cause to be returned to Seller or destroy or cause to be destroyed all of the Seller’s Deliveries (and provide written
confirmation of such destruction to Seller). This Section 7.2(b) shall survive the termination of this Agreement.

 

SECTION 7.3            Purchaser’s
Termination Right.

 

(a)           On
or before the expiration of the Due Diligence Period, Purchaser shall deliver written notice (the “Diligence Notice”)
to Seller stating either (i) that Purchaser elects to terminate this Agreement, in which event the Escrow Agent shall return the
Earnest Money to Purchaser without the consent of Seller or any other Person and no party shall have any further rights or obligations
under this Agreement (except for provisions hereof that are expressly stated to survive a termination of this Agreement), or (ii)
that Purchaser elects not to terminate this Agreement, in which event (A) Purchaser shall thereupon be deemed to have waived any
right to terminate this Agreement pursuant to the provisions of this Section 7.3(a) and this Agreement shall continue in full force
and effect in accordance with its terms and (B) the Earnest Money shall thereupon become nonrefundable, except as expressly specified
in this Agreement. Purchaser’s failure to timely deliver the Diligence Notice to Seller shall be deemed to constitute Purchaser’s
election not to terminate this Agreement (i.e. to elect clause (ii) above). For the avoidance of doubt, Purchaser’s right
to terminate this Agreement pursuant to clause (i) above shall be made at the sole discretion of Purchaser and can be made for
any reason or no reason.

 

(b)           Purchaser
hereby agrees that in the event Purchaser delivers (or is deemed to have delivered) a Diligence Notice electing not to terminate
this Agreement, the same shall constitute Purchaser’s acknowledgment that Purchaser has had adequate opportunity to consider,
inspect and review to its satisfaction the physical, environmental, economic and legal condition of the Property and all files
and information in Seller’s possession that Purchaser deems material to the purchase of the Property.

 

SECTION 7.4            Seller’s
Disclaimer. Purchaser acknowledges the following:

 

ANY INFORMATION
PROVIDED OR TO BE PROVIDED BY OR ON BEHALF OF SELLER WITH RESPECT TO THE PROPERTY IS PROVIDED SOLELY FOR PURCHASER’S CONVENIENCE.
SUCH INFORMATION WAS OR WILL BE OBTAINED FROM A VARIETY OF SOURCES, INCLUDING FROM SELLER’S PROPERTY MANAGER. SELLER HAS
NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND MAKES NO (AND EXPRESSLY DISCLAIMS ALL) REPRESENTATIONS
AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION, EXCEPT AS SET FORTH IN THIS AGREEMENT OR IN THE CLOSING DOCUMENTS TO BE
DELIVERED BY SELLER. EXCEPT AS OTHERWISE PROVIDED HEREIN OR IN SELLER’S CLOSING DOCUMENTS, SELLER SHALL NOT BE LIABLE FOR
ANY MISTAKES, OR OMISSIONS, OR FOR ANY PARTY’S FAILURE TO INVESTIGATE THE PROPERTY, NOR SHALL SELLER BE BOUND IN ANY MANNER
BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS, APPRAISALS, ENVIRONMENTAL SITE ASSESSMENTS OR OTHER INFORMATION PERTAINING
TO THE PROPERTY OR THE OPERATION THEREOF, FURNISHED BY SELLER, SELLER’S PROPERTY MANAGER, SELLER’S REPRESENTATIVES
OR ANY OTHER PERSON ACTING ON BEHALF OF SELLER, EXCEPT AS SET FORTH IN THIS AGREEMENT OR IN SELLER’S CLOSING DOCUMENTS.

 

    	 	38	 

     

    

 

SECTION 7.5            Examination;
No Contingencies.

 

(a)           IN
ENTERING INTO THIS AGREEMENT, PURCHASER HAS NOT BEEN INDUCED BY AND HAS NOT RELIED UPON ANY WRITTEN OR ORAL REPRESENTATIONS, WARRANTIES
OR STATEMENTS, WHETHER EXPRESS OR IMPLIED, MADE BY SELLER, OR ANY AFFILIATE, AGENT, EMPLOYEE, OR OTHER REPRESENTATIVE OF SELLER,
OR BY ANY BROKER OR ANY OTHER PERSON REPRESENTING OR PURPORTING TO REPRESENT SELLER WITH RESPECT TO THE PROPERTY, THE CONDITION
OF THE PROPERTY OR ANY OTHER MATTER AFFECTING OR RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY, OTHER THAN THOSE EXPRESSLY SET
FORTH IN THIS AGREEMENT OR IN THE SELLER’S CLOSING DOCUMENTS. PURCHASER’S OBLIGATIONS UNDER THIS AGREEMENT SHALL NOT
BE SUBJECT TO ANY CONTINGENCIES, DILIGENCE OR CONDITIONS EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT. DURING ITS DUE DILIGENCE
PERIOD AND PURSUANT TO THE TERMS OF THIS AGREEMENT, PURCHASER IS ENCOURAGED TO CONDUCT AN INDEPENDENT INVESTIGATION AND INSPECTION
OF THE PROPERTY, UTILIZING SUCH EXPERTS AS PURCHASER DEEMS TO BE NECESSARY FOR AN INDEPENDENT ASSESSMENT OF THE IMPROVEMENTS AND
EQUIPMENT USED IN THE OPERATION OF THE PROPERTY, AND COMPLIANCE OF THE PROPERTY (INCLUDING SPECIFICALLY THE IMPROVEMENTS) WITH
APPLICABLE LAWS, INCLUDING THE FEDERAL AMERICANS WITH DISABILITIES ACT AND/OR APPLICABLE ENVIRONMENTAL LAWS. PURCHASER AGREES THAT
THE PROPERTY WILL BE SOLD AND CONVEYED TO (AND ACCEPTED BY) PURCHASER AT CLOSING IN THE THEN-EXISTING CONDITION OF THE PROPERTY,
AS IS, WHERE IS, WITH ALL FAULTS, AND WITHOUT ANY WRITTEN OR VERBAL REPRESENTATIONS OR WARRANTIES WHATSOEVER, WHETHER EXPRESS
OR IMPLIED OR ARISING BY OPERATION OF LAW, OTHER THAN AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN SELLER’S CLOSING DOCUMENTS.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT AS SET FORTH IN THIS AGREEMENT OR IN SELLER’S CLOSING DOCUMENTS,
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT ARE WITHOUT STATUTORY, EXPRESS OR IMPLIED WARRANTY, REPRESENTATION, AGREEMENT,
STATEMENT OR EXPRESSION OF OPINION OF OR WITH RESPECT TO THE CONDITION OF THE PROPERTY OR ANY ASPECT THEREOF, INCLUDING, WITHOUT
LIMITATION, (I) ANY AND ALL STATUTORY, EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES RELATED TO THE SUITABILITY FOR HABITATION,
MERCHANTABILITY, WORKMANLIKE CONSTRUCTION OR FITNESS FOR USE OR ACCEPTABILITY FOR THE PURPOSE INTENDED BY PURCHASER OR ANY WARRANTIES
OR COVENANTS UNDER FLORIDA STATUTE WITH RESPECT TO ANY OF THE REAL PROPERTY OR ITS CONDITION OR THE CONSTRUCTION, PROSPECTS, OPERATIONS
OR RESULTS OF OPERATIONS OF THE PROPERTY, (II) ANY STATUTORY, EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES CREATED BY ANY AFFIRMATION
OF FACT OR PROMISE, BY ANY DESCRIPTION OF THE PROPERTY OR BY OPERATION OF LAW, AND (III) ALL OTHER STATUTORY, EXPRESS OR IMPLIED
REPRESENTATIONS OR WARRANTIES BY SELLER OF ANY TYPE WHATSOEVER. PURCHASER ACKNOWLEDGES THAT PURCHASER HAS KNOWLEDGE AND EXPERTISE
IN FINANCIAL AND BUSINESS MATTERS THAT ENABLE PURCHASER TO EVALUATE THE MERITS AND RISKS OF THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.

 

    	 	39	 

     

    

 

(b)          FOR
PURPOSES OF THIS AGREEMENT, THE TERM “CONDITION OF THE PROPERTY” MEANS THE FOLLOWING MATTERS:

 

(i)           PHYSICAL
CONDITION OF THE REAL PROPERTY. THE QUALITY, NATURE AND ADEQUACY OF THE PHYSICAL CONDITION OF THE REAL PROPERTY, INCLUDING,
WITHOUT LIMITATION, THE QUALITY OF THE DESIGN, LABOR AND MATERIALS USED TO CONSTRUCT THE IMPROVEMENTS INCLUDED IN THE REAL PROPERTY;
THE CONDITION OF STRUCTURAL ELEMENTS, FOUNDATIONS, ROOFS, GLASS, MECHANICAL, PLUMBING, ELECTRICAL, HVAC, SEWAGE, AND UTILITY COMPONENTS
AND SYSTEMS; THE CAPACITY OR AVAILABILITY OF SEWER, WATER, OR OTHER UTILITIES; THE GEOLOGY, FLORA, FAUNA, SOILS, SUBSURFACE CONDITIONS,
GROUNDWATER, LANDSCAPING, AND IRRIGATION OF OR WITH RESPECT TO THE REAL PROPERTY, THE LOCATION OF THE REAL PROPERTY IN OR NEAR
ANY SPECIAL TAXING DISTRICT, FLOOD HAZARD ZONE, WETLANDS AREA, PROTECTED HABITAT, GEOLOGICAL FAULT OR SUBSIDENCE ZONE, HAZARDOUS
WASTE DISPOSAL OR CLEAN-UP SITE, OR OTHER SPECIAL AREA, THE EXISTENCE, LOCATION, OR CONDITION OF INGRESS, EGRESS, ACCESS, AND PARKING;
THE CONDITION OF THE PERSONAL PROPERTY AND ANY FIXTURES; AND THE PRESENCE OF ANY ASBESTOS OR OTHER HAZARDOUS MATERIALS, DANGEROUS,
OR TOXIC SUBSTANCE, MATERIAL OR WASTE IN, ON, UNDER OR ABOUT THE REAL PROPERTY AND THE IMPROVEMENTS LOCATED THEREON. 

 

(ii)         ADEQUACY
OF THE PROPERTY. THE ECONOMIC FEASIBILITY, CASH FLOW AND EXPENSES OF THE PROPERTY, AND HABITABILITY, MERCHANTABILITY, FITNESS,
SUITABILITY AND ADEQUACY OF THE REAL PROPERTY FOR ANY PARTICULAR USE OR PURPOSE.

 

    	 	40	 

     

    

 

(iii)        LEGAL
COMPLIANCE OF THE PROPERTY. THE COMPLIANCE OR NON-COMPLIANCE OF SELLER OR THE OPERATION OF THE PROPERTY OR ANY PART THEREOF
IN ACCORDANCE WITH, AND THE CONTENTS OF, (A) ALL CODES, LAWS, ORDINANCES, REGULATIONS, AGREEMENTS, LICENSES, PERMITS, APPROVALS
AND APPLICATIONS OF OR WITH ANY GOVERNMENTAL AUTHORITIES ASSERTING JURISDICTION OVER THE PROPERTY, INCLUDING, WITHOUT LIMITATION,
THOSE RELATING TO ZONING, BUILDING, PUBLIC WORKS, PARKING, FIRE AND POLICE ACCESS, HANDICAP ACCESS, LIFE SAFETY, SUBDIVISION AND
SUBDIVISION SALES, AND HAZARDOUS MATERIALS, DANGEROUS, AND TOXIC SUBSTANCES, MATERIALS, CONDITIONS OR WASTE, INCLUDING, WITHOUT
LIMITATION, THE PRESENCE OF HAZARDOUS MATERIALS IN, ON, UNDER OR ABOUT THE PROPERTY THAT WOULD CAUSE STATE OR FEDERAL AGENCIES
TO REQUIRE CLEANUP OR MITIGATION WORK AT THE PROPERTY UNDER ANY APPLICABLE LEGAL REQUIREMENTS AND (B) ALL AGREEMENTS, COVENANTS,
CONDITIONS, RESTRICTIONS (PUBLIC OR PRIVATE), CONDOMINIUM PLANS, DEVELOPMENT AGREEMENTS, SITE PLANS, BUILDING PERMITS, BUILDING
RULES, AND OTHER INSTRUMENTS AND DOCUMENTS GOVERNING OR AFFECTING THE USE, MANAGEMENT, AND OPERATION OF THE PROPERTY.

 

(iv)        SELLER’S
CORE DELIVERIES. THE MATTERS DISCLOSED IN SELLER’S CORE DELIVERIES.

 

(v)         INSURANCE.
THE AVAILABILITY, COST, TERMS AND COVERAGE OF LIABILITY, HAZARD, COMPREHENSIVE AND ANY OTHER INSURANCE OF OR WITH RESPECT TO THE
PROPERTY.

 

(vi)        CONDITION
OF TITLE. SUBJECT TO SECTION 8.3, THE CONDITION OF TITLE TO THE REAL PROPERTY, INCLUDING, WITHOUT LIMITATION, VESTING, LEGAL
DESCRIPTION, MATTERS AFFECTING TITLE, TITLE DEFECTS, LIENS, ENCUMBRANCES, BOUNDARIES, ENCROACHMENTS, MINERAL RIGHTS, OPTIONS, EASEMENTS,
AND ACCESS; VIOLATIONS OF RESTRICTIVE COVENANTS, ZONING ORDINANCES, SETBACK LINES, OR DEVELOPMENT AGREEMENTS; THE AVAILABILITY,
COST, AND COVERAGE OF TITLE INSURANCE; LEASES, RENTAL AGREEMENTS, OCCUPANCY AGREEMENTS, RIGHTS OF PARTIES IN POSSESSION OF, USING,
OR OCCUPYING THE REAL PROPERTY; AND STANDBY FEES, TAXES, BONDS AND ASSESSMENTS.

 

    	 	41	 

     

    

 

SECTION 7.6            RELEASE.

 

(a)           SUBJECT
TO THE TERMS OF THIS AGREEMENT AND THE CLOSING DOCUMENTS, PURCHASER HEREBY AGREES THAT EFFECTIVE AS OF THE CLOSING DATE, SELLER,
AND EACH OF SELLER’S PARTNERS, MEMBERS, TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES, REPRESENTATIVES, PROPERTY MANAGERS, ASSET
MANAGERS, AGENTS, ATTORNEYS, AFFILIATES AND RELATED ENTITIES, HEIRS, SUCCESSORS, AND ASSIGNS (COLLECTIVELY, THE “RELEASED
PARTIES”) SHALL BE, AND ARE HEREBY, FULLY AND FOREVER RELEASED AND DISCHARGED FROM ANY AND ALL LIABILITIES, LOSSES, CLAIMS
(INCLUDING THIRD PARTY CLAIMS), DEMANDS, DAMAGES (OF ANY NATURE WHATSOEVER), CAUSES OF ACTION, COSTS, PENALTIES, FINES, JUDGMENTS,
REASONABLE ATTORNEYS’ FEES, CONSULTANTS’ FEES AND COSTS AND EXPERTS’ FEES (COLLECTIVELY, “CLAIMS”)
WITH RESPECT TO ANY AND ALL CLAIMS, WHETHER DIRECT OR INDIRECT, KNOWN OR UNKNOWN, FORESEEN OR UNFORESEEN, THAT MAY ARISE ON ACCOUNT
OF OR IN ANY WAY BE CONNECTED WITH THE PROPERTY INCLUDING, WITHOUT LIMITATION, THE PHYSICAL, ENVIRONMENTAL AND STRUCTURAL CONDITION
OF THE PROPERTY OR THE REAL PROPERTY OR ANY LAW OR REGULATION APPLICABLE THERETO, INCLUDING, WITHOUT LIMITATION, ANY CLAIM OR MATTER
(REGARDLESS OF WHEN IT FIRST APPEARED) RELATING TO OR ARISING FROM (A) THE PRESENCE OF ANY ENVIRONMENTAL PROBLEMS, OR THE USE,
PRESENCE, STORAGE, RELEASE, DISCHARGE, OR MIGRATION OF HAZARDOUS MATERIALS ON, IN, UNDER OR AROUND THE REAL PROPERTY REGARDLESS
OF WHEN SUCH HAZARDOUS MATERIALS WERE FIRST INTRODUCED IN, ON OR ABOUT THE REAL PROPERTY, (B) ANY PATENT OR LATENT DEFECTS OR DEFICIENCIES
WITH RESPECT TO THE PROPERTY, (C) ANY AND ALL MATTERS RELATED TO THE PROPERTY OR ANY PORTION THEREOF, INCLUDING WITHOUT LIMITATION,
THE CONDITION AND/OR OPERATION OF THE PROPERTY AND EACH PART THEREOF, (D) ANY AND ALL MATTERS RELATED TO THE CURRENT OR FUTURE
ZONING OR USE OF THE REAL PROPERTY, AND (E) THE PRESENCE, RELEASE AND/OR REMEDIATION OF ASBESTOS AND ASBESTOS-CONTAINING MATERIALS
IN, ON OR ABOUT THE REAL PROPERTY REGARDLESS OF WHEN SUCH ASBESTOS AND ASBESTOS CONTAINING MATERIALS WERE FIRST INTRODUCED IN,
ON OR ABOUT THE REAL PROPERTY; PROVIDED, HOWEVER, THAT IN NO EVENT SHALL RELEASED PARTIES BE RELEASED FROM ANY CLAIMS ARISING PURSUANT
TO THE PROVISIONS OF THIS AGREEMENT OR SELLER’S OBLIGATIONS, IF ANY, UNDER THE CLOSING DOCUMENTS. EFFECTIVE AS OF THE CLOSING
DATE, PURCHASER HEREBY WAIVES AND AGREES NOT TO COMMENCE ANY ACTION, LEGAL PROCEEDING, CAUSE OF ACTION OR SUITS IN LAW OR EQUITY,
OF WHATEVER KIND OR NATURE, INCLUDING, BUT NOT LIMITED TO, ANY CAUSE OF ACTION OR SUIT UNDER ENVIRONMENTAL LAWS, AGAINST THE RELEASED
PARTIES OR THEIR AGENTS IN CONNECTION WITH THE RELEASED CLAIMS DESCRIBED ABOVE.

 

(b)           TO
THE GREATEST EXTENT PERMITTED BY LAW SUBJECT TO THE TERMS OF THIS AGREEMENT AND THE CLOSING DOCUMENTS, PURCHASER HEREBY ACKNOWLEDGES
AND AGREES THAT FACTUAL MATTERS NOT KNOWN TO IT MAY HAVE GIVEN OR MAY HEREAFTER GIVE RISE TO CAUSES OF ACTION, CLAIMS, DEMANDS,
DEBTS, CONTROVERSIES, DAMAGE, COSTS, LOSSES AND EXPENSES WHICH ARE PRESENTLY UNKNOWN, UNANTICIPATED AND UNSUSPECTED. PURCHASER
FURTHER ACKNOWLEDGES AND AGREES THAT THE WAIVERS AND RELEASES HEREIN HAVE BEEN NEGOTIATED AND AGREED UPON IN LIGHT THE FOREGOING
SENTENCE AND THAT, EFFECTIVE AS OF THE CLOSING DATE, SUBJECT TO THE TERMS OF THIS AGREEMENT AND THE CLOSING DOCUMENTS, PURCHASER
NEVERTHELESS HEREBY INTENDS TO RELEASE, DISCHARGE AND ACQUIT SELLER FROM ANY SUCH UNKNOWN CLAIMS, DEBTS, AND CONTROVERSIES WHICH
MIGHT IN ANY WAY BE INCLUDED AS A MATERIAL PORTION OF THE CONSIDERATION GIVEN TO SELLER BY PURCHASER IN EXCHANGE FOR THE SELLER’S
PERFORMANCE HEREUNDER.

 

    	 	42	 

     

    

 

(c)           THIS
RELEASE SHALL BE GIVEN FULL FORCE AND EFFECT ACCORDING TO EACH OF ITS EXPRESSED TERMS AND PROVISIONS, INCLUDING THOSE RELATING
TO UNKNOWN AND UNSUSPECTED CLAIMS, DAMAGES AND CAUSES OF ACTION.

 

(d)           SELLER
HAS GIVEN PURCHASER MATERIAL CONCESSIONS REGARDING THIS TRANSACTION IN EXCHANGE FOR PURCHASER’S AGREEING TO THE PROVISIONS
OF THIS SECTION 7.6. THE PROVISIONS OF THIS SECTION 7.6 SHALL SURVIVE CLOSING WITHOUT LIMITATION AND SHALL NOT BE DEEMED MERGED
INTO ANY INSTRUMENT OR CONVEYANCE DELIVERED AT CLOSING.

 

(e)           Nothing
in this AGREEMENT shall be interpreted as waiving any claim of Purchaser with respect to (A) any breach by Seller of any express
representations, warranties OR covenants made by Seller in this Agreement or the Closing Documents, OR (B) ANY THIRD PARTY (INCLUDING
GOVERNMENTAL) CLAIM, DEMAND, OR ACTION AGAINST PURCHASER REGARDING THE PROPERTY THAT RESULTS FROM THE ACTS OR OMISSIONS OF a RELEASED
PARTY OR OTHER EVENTS OCCURRING DURING SELLER’S PERIOD OF OWNERSHIP OF THE PROPERTY. FURTHER, NOTWITHSTANDING
ANYTHING IN IN THIS AGREEMENT TO THE CONTRARY: (I) PURCHASER SHALL HAVE THE RIGHT TO DEFEND GOVERNMENT AND THIRD-PARTY CLAIMS BY
ALLEGING THAT SELLER, A RELEASED PARTY OR SOMEONE ACTING ON SELLER’S BEHALF, NOT PURCHASER, IS LIABLE FOR SUCH CLAIMS AND
PURCHASER HAS NO OBLIGATION TO INDEMNIFY A RELEASED PARTY FOR GOVERNMENTAL OR THIRD PARTY CLAIMS ASSERTED BEFORE OR AFTER THE CLOSING
AS A RESULT OF ANY ACT OR OMISSION TAKEN OR FAILED TO BE TAKEN BY OR ON A RELEASED PARTY’S BEHALF PRIOR TO THE CLOSING; AND
(II) THE ACKNOWLEDGMENTS, WAIVERS AND RELEASES SET FORTH BY PURCHASER IN THIS AGREEMENT SHALL NOT APPLY TO THIRD-PARTY TORT CLAIMS
RELATING TO THE PROPERTY AND OCCURRING DURING SELLER’S OWNERSHIP OF THE PROPERTY. ADDITIONALLY, SELLER AND PURCHASER HEREBY
ACKNOWLEDGE AND AGREE THAT THE WAIVERS AND RELEASES SET FORTH BY PURCHASER IN THIS AGREEMENT ARE NOT INTENDED TO BE AND SHALL NOT
BE CONSTRUED AS A WAIVER OF SIMILAR CLAIMS AGAINST ANY OF SELLER’S PREDECESSORS-IN-TITLE WITH RESPECT TO THE PROPERTY (“PREDECESSORS”),
OR ANY SUCH PREDECESSOR’S OFFICERS, MEMBERS, MANAGERS, DIRECTORS, PARTNERS, EMPLOYEES, AGENTS OR CONTRACTORS, OR ANY OTHER
PERSON ACTING ON BEHALF OF ANY SUCH PREDECESSORS.

 

    	 	43	 

     

    

 

(f)           Additionally,
notwithstanding any provision hereof to the contrary, the acknowledgments, waivers and releases set forth in this AGREEMENT by
Purchaser and the Survival Period (AS set forth in section 11.4 of this agreement) shall not apply to any claim with respect to
any fraudulent misrepresentation by Seller; PROVIDED, HOWEVER, IN THE EVENT THAT PURCHASER BRINGS AN ACTION AGAINST
SELLER ALLEGING FRAUD AND PURCHASER THEREAFTER FAILS TO OBTAIN A FINAL, UNAPPEALABLE JUDGMENT AGAINST SELLER ON THE BASIS OF FRAUD,
THEN PURCHASER SHALL PROMPTLY PAY TO SELLER AS LIQUIDATED DAMAGES, AND NOT AS A PENALTY, THE AMOUNT OF TWO MILLION FIVE HUNDRED
THOUSAND DOLLARS ($2,500,000.00). PURCHASER AND SELLER AGREE THAT SELLER’S DAMAGES RESULTING FROM AN ALLEGATION OF FRAUD
ARE DIFFICULT, IF NOT IMPOSSIBLE, TO DETERMINE, AND THAT THE AMOUNT SET FORTH IN THIS SECTION 7.6(f) IS A FAIR ESTIMATE OF THOSE
DAMAGES WHICH HAS BEEN AGREED TO IN AN EFFORT TO CAUSE THE AMOUNT OF SUCH DAMAGES TO BE CERTAIN.

 

SECTION 7.7            Effect
of Purchaser Waiver of Lead-Based Paint Inspections. Purchaser acknowledges that it has had or will have the opportunity to
undertake studies, inspections or investigations of the Real Property as Purchaser deemed or deems necessary to evaluate the presence
of lead-based paint and/or lead-based paint hazards on the Real Property. To the extent that Purchaser has waived or otherwise
declined the opportunity to undertake such inspections and investigations as a condition to the completion of the transaction
under the terms of the Agreement, Purchaser has knowingly and voluntarily done so. Purchaser understands and acknowledges that
certain of the Improvements or portions thereof may have been built prior to 1978, and that lead-based paint and/or lead-based
paint hazards may be present on the Real Property. Except as otherwise set forth in this Agreement or the Closing Documents, Seller
shall have no responsibility or liability with respect to any such presence of lead-based paint at the Property.

 

Article
8 

TITLE AND PERMITTED EXCEPTIONS

 

SECTION 8.1            Title
Insurance and Survey.

 

(a)           Title
Commitment. Seller has delivered to Purchaser a title commitment for an ALTA Owner’s Title Insurance Policy (the “Title
Commitment”) issued by the Title Company covering the Real Property providing for the issuance at the Closing to Purchaser
of the Owner’s Policy. Upon issuance, the Owner’s Policy will except from coverage only those exceptions which become
Permitted Exceptions pursuant to this Agreement. Except as permitted under this Agreement, no additional encumbrances may be created
on the Property by Seller from and after the date of the Title Commitment without the prior written consent of Purchaser.

 

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(b)           Updated
Survey. Seller has provided a copy of Seller’s most recent survey of the Real Property to Purchaser as part of Seller’s
Deliveries. Seller has also delivered to Purchaser a new ALTA/NSPS survey for the Real Property (the “Updated Survey”).
If the legal description for the Land on the Updated Survey differs from the legal description attached to this Agreement for the
Land, upon Purchaser’s request, Seller shall execute and deliver to Purchaser at Closing a quitclaim deed, without representation
or warranty, that uses the legal description set forth on the Updated Survey.

 

(c)           Disapproved
Title Matters. Purchaser notified Seller in writing (the “Title Objection Notice”) on May 31, 2019 (the
expiration date of Purchaser’s “Title Review Period”) as to which matters within the Title Commitment
and which survey matters disclosed on the Updated Survey are not acceptable to Purchaser (individually, a “Disapproved
Title Matter”). Any matter within the Title Commitment and the Updated Survey that Purchaser failed to so disapprove
in the Title Objection Notice shall be conclusively deemed to have been approved by Purchaser and shall constitute a “Permitted
Exception.” Seller notified Purchaser in writing on June 7, 2019, as supplemented by written notice to Purchaser on
June 14, 2019 (collectively, the “Title Response Notice”), regarding whether Seller either (i) agreed
to remove each such Disapproved Title Matter from title to the Real Property on or before the Closing, or (ii) declined to remove
such Disapproved Title Matter from title to the Real Property. If Seller failed to timely deliver a Title Response Notice as to
a particular Disapproved Title Matter, then Seller shall be deemed to have made the election in clause (ii) above as to such Disapproved
Title Matter.

 

(d)           Regarding
the Disapproved Title Matters in Purchaser’s Title Objection Notice as to which Seller has elected (or is deemed to have
elected) not to remove such matters from title (i.e. Seller has made the election in clause (c)(ii) above), Purchaser acknowledges
that it has elected to accept the condition of title to the Real Property subject to such Disapproved Title Matters, and that such
uncured Disapproved Title Matters shall hereafter constitute “Permitted Exceptions.”

 

(e)           Required
Cure Items. Notwithstanding anything contained herein to the contrary, Seller shall be obligated, at Closing, to cause Title
Company to remove (i) deeds of trust, mortgages, security deeds or other security liens encumbering the Property; (ii) judgment
liens encumbering the Property; (iii) mechanic’s or materialmen’s liens encumbering the Property; (iv) any instrument
or other matter of record evidencing a lien or monetary encumbrance against the Property, or that may be discharged or satisfied
through the payment of money; (v) matters created or appearing of record after the date of the Title Commitments and caused by
the act or omission of Seller without the prior written consent of Purchaser; and (vi) any outstanding water bills, sewer bills,
gas bills, electric bills or other utility bills due and owing (items i, ii, iii, iv, v and vi above are collectively referred
to as the “Required Cure Items”). Seller shall be entitled to cure any Required Cure Items by compliance with
a statutory bonding procedure that has the legal effect of removing the Required Cure Item as a lien on the Real Property, provided
that such bonding procedure also causes the subject item to be removed as an exception in the Owner’s Policy. If Seller agrees
in writing to cure a Disapproved Title Matter prior to Closing but thereafter subsequently fails to do so, Seller shall be in material
default hereunder and Purchaser shall be permitted to pursue the remedies provided in Section 13.2 hereof, subject to any notice
and cure provisions relating thereto.

 

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(f)           Written
approval by Purchaser of any additional materially adverse title exceptions, defects, encumbrances or other title matters not shown
on the Title Commitment or Updated Survey disclosed in writing to Purchaser after the expiration of the Title Review Period or
new exceptions, defects, encumbrances or other title matters not shown on the Title Commitment solely due to an error by the Title
Company in omitting the same and for which Purchaser had no prior knowledge (collectively, “Additional Title Matters”)
shall be a condition precedent to Purchaser’s obligations to purchase the Property. Unless Purchaser gives written notice
(an “Additional Title Disapproval Notice”) that it disapproves any Additional Title Matters, stating the Additional
Title Matters so disapproved (the “Additional Title Disapproval Matters”), before the sooner to occur of the
Closing or five (5) Business Days after receipt of written notice of such Additional Title Matters, Purchaser shall be deemed to
have approved such Additional Title Matters and any such Additional Title Matters shall thereafter constitute “Permitted
Exceptions.” Seller shall have until three (3) Business Days after receipt of any Additional Title Disapproval Notice (the
“Additional Title Response Period”) to notify Purchaser in writing (an “Additional Title Disapproval
Response”) of the Additional Title Disapproval Matters, if any, which Seller will cure prior to Closing. Seller’s
failure to timely provide such Additional Title Disapproval Response shall be deemed to constitute Seller’s election not
to cure any Additional Title Disapproval Matters. If Seller does not agree to cure all Additional Disapproved Matters, then Purchaser
may, at its option, terminate this Agreement upon written notice to Seller, but only if given prior to the sooner to occur of Closing
or five (5) Business Days after Purchaser receives the Additional Title Disapproval Response, or if Seller does not provide the
Additional Title Disapproval Response, five (5) Business Days after the end of the Additional Title Response Period, in which case
this Agreement shall immediately terminate, Purchaser shall be entitled to a return of the Earnest Money, and Seller and Purchaser
shall have no further rights or obligations hereunder, except for the provisions hereof that expressly survive termination of this
Agreement. If Purchaser fails to give such termination notice by such date, Purchaser shall be deemed to have waived its objection
to, and to have approved, the matters set forth in Seller’s notice, and any such uncured Additional Title Disapproval Matters
shall become “Permitted Exceptions.” Notwithstanding the foregoing, in the event that any such matter not set forth
on the original Title Commitment or original Updated Survey, as applicable, constitutes a breach of Seller’s obligations
under this Agreement, then Seller shall be in default under this Agreement, and Purchaser shall be permitted to pursue the remedies
provided in Section 13.2 hereof, subject to any notice and cure provisions relating thereto.

 

SECTION 8.2            Intentionally
Deleted.

 

SECTION 8.3            Certain
Exceptions to Title; Inability to Convey.

 

(a)           Seller’s
interest in the Real Property shall be conveyed by Seller, and Purchaser agrees to acquire Seller’s interest in the Real
Property, subject only to the Permitted Exceptions. Notwithstanding anything in this Agreement to the contrary, Seller shall be
obligated at or prior to the Closing to cause the release or discharge, at Seller’s sole cost and expense, of any Required
Cure Items. The parties acknowledge and agree that Seller shall have the right to apply or cause the Escrow Agent to apply all
or any portion of the Purchase Price to cause the release or discharge of any Required Cure Items when escrow is broken at Closing.

 

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(b)           Notwithstanding
anything herein to the contrary, if Seller notifies Purchaser in writing that it will cure a title objection of the Purchaser but
subsequently fails to cure such objection at or prior to Closing, Seller shall be in default under this Agreement and all remedies
set forth in Section 13.2 shall be available to Purchaser.

 

(c)           Except
as expressly set forth in Section 8.1 or in Section 8.3(a), nothing contained in this Agreement shall be deemed to require Seller
to take or bring any action or proceeding or any other steps to remove any title exception or to expend any moneys therefor, and
except in connection with a Seller default under this Agreement, Purchaser shall not have any right of action against Seller, at
law or in equity, for Seller’s inability to convey its interest in the Real Property subject only to the Permitted Exceptions.

 

SECTION 8.4            Purchaser’s
Right to Accept Title.

 

(a)           Notwithstanding
the foregoing provisions of this Article 8, Purchaser may, by written notice given to Seller at any time prior to the earlier of
(x) the Closing Date and (y) the termination of this Agreement, elect to accept such title as Seller can convey, notwithstanding
the existence of any title or survey exceptions that are not Permitted Exceptions and which Seller is not required to remove or
cure pursuant to this Agreement. In such event, this Agreement shall remain in effect and the parties shall proceed to Closing,
but Purchaser shall not be entitled to any abatement of the Purchase Price, any credit or allowance of any kind or any claim or
right of action against Seller for damages or otherwise by reason of the existence of any title exceptions which are not Permitted
Exceptions and which Seller is not required to remove or cure pursuant to this Agreement.

 

(b)           Purchaser
shall be entitled to request that the Title Company provide such endorsements (or amendments) to the Owner’s Policy as Purchaser
may reasonably require, provided that (i) such endorsements (or amendments), other than any curative endorsements that Seller
may elect to obtain pursuant to Section 8.1 or Section 8.3(a), shall be at no cost to, and shall impose no additional liability
on, Seller, (ii) Purchaser’s obligations under this Agreement shall not be conditioned upon Purchaser’s ability to
obtain such endorsements (other than any curative endorsements that Seller may elect to obtain pursuant to Section 8.1 or Section
8.3(a)), and, if Purchaser is unable to obtain such endorsements, Purchaser shall nevertheless be obligated to proceed to close
the transactions contemplated by this Agreement without reduction of or setoff against the Purchase Price, and (iii) the Closing
shall not be delayed as a result of Purchaser’s request hereunder.

 

Article
9 

TRANSACTION COSTS; RISK OF LOSS

 

SECTION 9.1            Transaction
Costs.

 

(a)           Purchaser
and Seller agree to comply with all real estate transfer tax laws applicable to the sale of the Property.

 

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(b)           At
Closing, Seller shall pay or cause to be paid the following: (i) any title search and exam fees and the base Owner’s Policy
premium (Purchaser specifically agreeing and acknowledging that Seller shall also be entitled to any rebate or discount associated
with such title premium); (ii) any costs in connection with discharging any encumbrances that Seller specifically agrees to or
is obligated to pay, discharge, remove or cure pursuant to the terms of this Agreement; (iii) any state or local transfer tax,
excise tax or documentary stamps payable on the conveyance of the Property to Purchaser; (iv) Broker’s commission; and (v)
one-half (1/2) of all escrow or closing charges of the Escrow Agent.

 

(c)           At
Closing, Purchaser shall pay or cause to be paid the following: (i) except to the extent that any such costs are to be paid by
Seller under Section 9.1(b) hereof, all other costs for the Owner’s Policy and any lender’s title policy or policies
on the Property, including premiums for any extended coverage, endorsements, update charges and other title charges; (ii) Purchaser’s
cost to obtain the Updated Survey; (iii) all other fees, costs or expenses in connection with Purchaser’s due diligence reviews
and analyses hereunder; (iv) document recording fees for the Deed, the Condominium Conversion Prohibition Agreement and any other
recordable conveyance documents for the Property; (v) all costs associated with Purchaser’s acquisition financing, if any,
including any state or local documentary stamps, intangibles tax or mortgage tax and recording fees for any recordable loan documents;
and (vi) one-half (1/2) of all escrow or closing charges of the Escrow Agent (not to exceed $750.00). Except as otherwise expressly
provided in this Agreement, each party shall pay the fees of its own attorneys, accountants and other professionals.

 

(d)           Each
of Purchaser, on the one hand, and Seller, on the other hand, shall indemnify the other and their respective successors and assigns
from and against any and all loss, damage, cost, charge, liability or expense (including court costs and reasonable attorneys’
fees actually incurred) which such other party may sustain or incur as a result of the failure of either such party to timely pay
any of the aforementioned fees or other charges for which it has assumed responsibility under this Section 9.1. The provisions
of this Section 9.1 shall survive the Closing or the termination of this Agreement.

 

SECTION 9.2            Risk
of Loss.

 

(a)           Prior
to the Closing, the risk of loss shall remain with Seller. If, on or before the Closing Date, the Real Property or any portion
thereof shall be (i) damaged or destroyed by fire or other casualty or (ii) taken or threatened in writing to be taken as a result
of any condemnation or eminent domain proceeding, Seller shall promptly notify Purchaser and, at Closing, Seller will credit against
the Purchase Price payable by Purchaser an amount equal to the net proceeds (other than on account of business or rental interruption
relating to the period prior to Closing), if any, received by Seller as a result of such casualty or condemnation, together with
a credit for any deductible under such insurance, less any amounts spent by Seller to remedy unsafe conditions at the Real Property
prior to Closing. If as of the Closing Date, Seller has not received any such insurance or condemnation proceeds, then the parties
shall nevertheless consummate the conveyance of the Property on such date (without any credit for such insurance or condemnation
proceeds except for a credit for any deductible under such insurance, less any amounts spent by Seller to remedy unsafe conditions
at the Real Property prior to Closing), and at Closing Seller will assign to Purchaser all rights of Seller, if any, to the insurance
or condemnation proceeds (other than on account of business or rental interruption relating to the period prior to Closing) and
to all other rights or claims arising out of or in connection with such casualty or condemnation. Notwithstanding anything herein
to the contrary, after the expiration of the Due Diligence Period, Seller shall not settle any insurance claim in connection with
damage or destruction to the Real Property or any portion thereof by fire or other casualty or settle any condemnation or eminent
domain action brought against the Real Property or any portion thereof without Purchaser’s prior written consent, which shall
not be unreasonably withheld, conditioned or delayed; provided, however, that in the event of a Material Casualty or Material Condemnation,
Purchaser’s consent will only be required after Purchaser’s waiver of its right to terminate this Agreement pursuant
to this Section 9.2 (and provided further that Purchaser shall not be required to waive its termination right until a casualty
is determined to be a Material Casualty and a condemnation is determined to be a Material Condemnation).

 

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(b)           Notwithstanding
the provisions of Section 9.2(a), if, on or before the Closing Date, the Real Property or any portion thereof shall be (i) damaged
or destroyed by a Material Casualty or (ii) taken or threatened in writing to be taken as a result of a Material Condemnation,
Purchaser shall have the right, exercised by written notice to Seller no more than five (5) Business Days after Purchaser has received
written notice of such Material Casualty or Material Condemnation from Seller, to terminate this Agreement, in which event the
Earnest Money shall be refunded to Purchaser and no party shall have any further rights or obligations hereunder other than those
which expressly survive the termination of this Agreement. If Purchaser fails to timely terminate this Agreement in accordance
with this Section 9.2(b), the provisions of Section 9.2(a) shall apply.

 

(c)           Further
notwithstanding Section 9.2(a), Section 9.2(b) or any other provision of this Agreement to the contrary, if a Material Casualty
or Material Condemnation occurs on or after July 15, 2019, and Purchaser timely elects to terminate this Agreement due to
the Material Casualty or Material Condemnation, then Purchaser shall be entitled to the following:

 

(i)           Refund
of the Earnest Money to Purchaser; and

 

(ii)         If
Purchaser has deposited funds with Purchaser’s Acquisition Lender as a rate lock deposit with respect to Purchaser’s
Acquisition Loan pursuant to a final written mortgage loan commitment from Purchaser’s Acquisition Lender, and Purchaser’s
Acquisition Lender refuses to return all or substantially all of such deposit, then Seller shall also reimburse Purchaser for Purchaser’s
actual out of pocket losses for the non-refundable portion of such deposit, not to exceed three percent (3.0%) of the amount of
Purchaser’s Acquisition Loan as shown in Purchaser’s Acquisition Lender’s written loan commitment. For the avoidance
of doubt, however, Purchaser shall not be entitled to reimbursement of any other out of pocket expenses.

 

(iii)        Upon
completion of subsections (i) and (ii) above, Seller and Purchaser shall be released from further obligation or liability hereunder
(except for those obligations and liabilities which expressly survive termination).

 

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(d)           A
“Material Casualty” shall mean any damage to the Real Property or any portion thereof occurring at any time
on or after the Effective Date by fire or other casualty that is expected to cost in excess of one and one half percent (1.5%)
of the Purchase Price to repair (as determined by the independent insurance adjuster designated by Seller’s insurance company).

 

(e)           A
“Material Condemnation” shall mean any condemnation or conveyance in lieu of condemnation for the Real Property
which: (i) permanently and materially impairs the current use or value of the Real Property; (ii) permanently and materially impairs
access to the Real Property from public roads; (iii) reduces the number or utility of parking spaces; or (iv) prohibits, as a matter
of applicable law, the rebuilding or repair of any Improvements as they currently exist.

 

Article
10 

ADJUSTMENTS

 

Unless otherwise provided
below, the following are to be adjusted and prorated between Seller and Purchaser as of 11:59 pm Eastern Time on the day preceding
the Closing the “Adjustment Point”), based upon a 365-day year, with Purchaser being deemed to be the owner
of the Property during the entire day of the Closing Date and being entitled to receive all operating income of the Property, and
being obligated to pay all operating expenses of the Property, with respect to the Closing Date, and the net amount thereof under
this Article 10 shall be added to (if such net amount is in Seller’s favor) or deducted from (if such net amount is in Purchaser’s
favor) the Purchase Price payable at Closing. Escrow Agent shall prepare the Closing Statement of the prorations and adjustments
required by this Agreement and shall submit the same to Purchaser and Seller for review and approval at least three (3) Business
Days prior to the Closing Date.

 

SECTION 10.1         Rents.

 

(a)           All
Rents (as hereinafter defined) paid by tenants under the Leases in connection with their occupancy of the Real Property shall be
adjusted and prorated as of the Adjustment Point. Delinquent Rents shall not be prorated. Seller shall be entitled to all Rents
under Leases attributable to the period prior to the Adjustment Point, and Purchaser shall be entitled to all Rents under Leases
attributable to the period from and after the Adjustment Point. All prepaid Rents for periods of occupancy after the Adjustment
Point shall be credited to Purchaser at Closing. Any Rents collected by Purchaser or Seller after Closing from any tenant who owes
Rents for periods prior to Closing shall be applied (i) first, in payment of current Rents at the time of receipt, (ii) second,
to delinquent Rents, if any, which became due after the Closing, and (iii) third, to delinquent Rents, if any, which became due
and payable prior to the Closing or otherwise attributable to the period prior to Closing. “Rents” for purposes
of this Agreement shall mean (whether paid in advance of the date when such payment is due or otherwise) all fixed rents and other
charges or amounts payable by tenants under the Leases or in connection with their use or occupancy of the Real Property or any
service or amenity relating thereto, including water, electricity, gas, sewage or other utilities charges or other pass-through
fees and charges.

 

    	 	50	 

     

    

 

(b)           For
a period of one hundred twenty (120) days following Closing, Purchaser shall bill tenants who owe Rents for periods prior to the
Closing and use commercially reasonable efforts to pursue collection of such past due Rents to the full extent that Purchaser would
endeavor to collect delinquent Rents owed to Purchaser, but shall not be obligated to engage a collection agency or take legal
action or other enforcement action under the applicable Lease to collect such amount. Purchaser shall pay to Seller, no later than
seven (7) days after collection, any collected amount that is owed to Seller, it being understood that any Rent and other sums
collected by Purchaser under any Lease subsequent to the Closing shall first be applied to Rent and income obligations owing to
Purchaser for its period of ownership. For a period of one hundred twenty (120) days following Closing, Purchaser may not waive
any delinquent (or unpaid) Rents or modify a Lease so as to reduce or otherwise affect amounts owed thereunder for any period in
which Seller is entitled to receive a share of charges or amounts without first obtaining Seller’s written consent. From
and after Closing, Seller shall take no action with regards to obtaining delinquent Rent or other sums from existing tenants at
the Property. With respect to delinquent or other uncollected Rents and any other amounts or other rights of any kind respecting
tenants who are no longer tenants of the Property as of the Closing Date, Seller shall retain all of the rights relating thereto.
Notwithstanding anything contained herein to the contrary, Seller acknowledges and agrees that Purchaser is under no obligation
to collect delinquent Rents on Seller’s behalf.

 

SECTION 10.2         Taxes
and Assessments. All non-delinquent real estate, ad valorem real property and personal property taxes and assessments with
respect to the Property for the tax year in which Closing occurs shall be prorated between Seller and Purchaser as of the Adjustment
Point (on the basis of the most recent available tax bill if the current bill is not then available and on the basis of the actual
number of days elapsed over the applicable tax year). Seller shall be responsible for the payment of any such real estate and
personal property taxes for years prior to the local tax year in which Closing occurs. In no event shall Seller be charged with
or be responsible for any increase in the taxes on the Property resulting from (a) any change in use of the Property on or after
the Closing Date, or (b) any improvements made or leases entered into on or after the Closing Date. If any taxes or assessments
on the Property are payable in installments, then the installment allocable to the current period shall be prorated (with Purchaser
being allocated the obligation to pay any installments due on or after the Closing Date).

 

SECTION 10.3         Intentionally
Deleted.

 

SECTION 10.4         Utility
Charges.

 

(a)           Water,
sewer, gas, steam, electricity and other public utility charges will be paid by Seller to the utility company on or prior to the
Closing Date. Seller shall arrange for a final reading of all utility meters (covering gas, water, steam and electricity) as of
the Closing. To the extent necessary, Seller and Purchaser shall execute a letter to each such utility company advising it of the
termination of Seller’s responsibility for utilities furnished to the Real Property as of the Closing Date and commencement
of Purchaser’s responsibilities therefor from and after such date. If a bill is obtained from any such utility company as
of Closing, Seller shall pay such bill on or before the Closing Date. Any utilities not read or billed as of the Closing Date will
be prorated as of the Adjustment Point based on estimates at Closing, and adjusted after Closing once the final amounts are known.
Additionally, Seller shall receive credits at Closing for the amount of any utility deposits with respect to the Real Property
paid by Seller, to the extent Purchaser receives a credit from the applicable utility company on account of such deposit.

 

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(b)           Notwithstanding
the foregoing, if Seller pays any utility bills and, directly or through a billing service, bills the tenants for such utilities,
then at Closing, Seller shall receive a credit for the estimated amount of utility charges incurred by Seller and reimbursable
to Seller from tenants under the Leases for periods prior to Closing (“RUBS”). The credit shall be for sixty
(60) days of RUBS calculated based on the average RUBS payable by the tenants for the twelve (12) month period preceding the Closing
Date. Such credit shall be final and shall not be subject to reproration pursuant to Section 10.10.

 

SECTION
10.5         Miscellaneous Revenues. Periodic revenues, if any, arising
out of telephone booths, vending machines, laundry machines or other income-producing agreements shall be adjusted and
prorated between Purchaser and Seller as of the Adjustment Point (provided that one-time inducement fees, “door
fees” or similar non-recurring payments under Assumed Contracts shall not be prorated as of the Closing Date).

 

SECTION 10.6         Assumed
Contracts. Amounts due under the Assumed Contracts shall be adjusted and prorated between Purchaser, on the one hand, and Seller,
on the other hand, as of the Adjustment Point, with Purchaser to receive a credit at Closing for any amounts unpaid and attributable
for the period prior to the Closing and Seller to receive a credit at Closing for any amounts previously paid and attributable
to the period on and following the Closing.

 

SECTION 10.7         Association
Fees. If applicable, all owners’ association fees or similar fees and assessments due and payable with respect to the
Real Property with respect to the association’s fiscal year in which the Closing occurs shall be adjusted and prorated based
on the periods of ownership by Seller and Purchaser during such association’s fiscal year.

 

SECTION 10.8         Security
Deposits. The actual amounts of the Refundable Security Deposits held by Seller as landlord under the Leases shall be credited
to Purchaser against the balance of the Purchase Price at Closing. Any such Refundable Security Deposits in forms other than cash
(including letters of credit) shall be transferred to Purchaser on the Closing Date by way of appropriate instruments of transfer
or assignment.

 

SECTION 10.9         Other
Adjustments. If applicable, the Purchase Price shall be adjusted at Closing to reflect the adjustment of any other item which,
under the explicit terms of this Agreement, is to be apportioned at Closing. Any other items of operating income or operating
expense that are customarily apportioned between the parties in real estate closings of comparable commercial properties in the
metropolitan area where the Property is located shall be prorated as applicable; however, there will be no prorations for debt
service, insurance premiums or payroll, because Purchaser is not acquiring or assuming Seller’s financing, insurance or
employees.

 

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SECTION 10.10         Re-Adjustment.
In the event any prorations or apportionments made under this Article 10 shall prove to be incorrect for any reason, then any
party shall be entitled to an adjustment to correct the same. Any item that cannot be finally prorated because of the unavailability
of information shall be tentatively prorated on the basis of the best data then available and reprorated when the information
is available. Notwithstanding anything to the contrary set forth herein, all re-prorations contemplated by this Agreement shall
be completed within three (3) months after the Closing Date (subject to extension solely as necessary due to the unavailability
of final information but in no event to exceed four (4) months after the Closing Date); provided, however, the final date with
respect to real estate, ad valorem real property and property taxes and assessments shall be thirty (30) days after the issuance
of final bills or other final resolutions of any contest relating thereto. The obligations of Seller and Purchaser under this
Article 10 shall survive Closing for the time periods set forth in this Section 10.10.

 

Article
11 

INDEMNIFICATION

 

SECTION
11.1         Indemnification by Seller. Following Closing and subject to Sections
11.3, 11.4 and 11.5, Seller shall indemnify and hold Purchaser and each of its respective Affiliates, members, partners, shareholders,
officers and directors (collectively, the “Purchaser-Related Entities”) harmless from and against any and all
costs, fees, expenses, damages, deficiencies, interest and penalties (including, without limitation, reasonable attorneys’
fees and disbursements actually incurred) suffered or incurred by Purchaser in connection with any and all losses, liabilities,
claims, damages and expenses (“Losses”), arising out of, or resulting from, (a) any breach of any representation
or warranty of Seller contained in Section 3.1 of this Agreement or in any Closing Document executed by Seller (collectively,
the “Seller Representations”), and (b) any breach of any covenant of Seller contained in this Agreement or
in any Closing Document that expressly survives the Closing (collectively, the “Surviving Covenants”).

 

SECTION 11.2         Indemnification
by Purchaser. From and after the Closing and subject to Sections 11.4, 11.5 and 11.7, Purchaser shall indemnify and hold Seller
and each of its Affiliates, members, partners, shareholders, officers and directors (collectively, the “Seller-Related
Entities”) harmless from any and all Losses arising out of, or in any way resulting from, (a) any breach of any representation
or warranty by Purchaser contained in Section 4.1 of this Agreement or in any Closing Document executed by Purchaser, and (b)
any breach of any covenant of Purchaser contained in this Agreement or in any Closing Document that expressly survives the Closing.

 

    	 	53	 

     

    

 

SECTION 11.3         Limitations
on Indemnification by Seller. Notwithstanding the foregoing provisions of Section 11.1, (a) Seller shall not be required to
indemnify Purchaser unless the amount for which an indemnity would otherwise be payable by Seller under Section 11.1 exceeds the
Basket Limitation and, in such event, Seller shall be responsible for all such amounts from the first dollar of loss up to the
Cap Limitation (provided that Seller’s obligations under Article 10 with respect to prorations and adjustments and Seller’s
obligations under Section 14.2 with respect to brokers shall not be subject to the Basket Limitation or the Cap Limitation), (b)
in no event shall the liability of Seller with respect to the indemnification provided for in Section 11.1 exceed the Cap Limitation
(provided that Seller’s obligations under Article 10 with respect to prorations and adjustments and Seller’s obligations
under Section 14.2 with respect to brokers shall not be subject to the Basket Limitation or the Cap Limitation), and (c) in the
event Purchaser or New Property Manager has actual knowledge or any Deemed Purchaser Knowledge of any inaccuracy or breach of
any representation, warranty, or covenant of Seller contained in this Agreement (a “Purchaser Waived Breach”)
after the Effective Date but prior to Closing, and nonetheless proceeds with and consummates Closing, then Purchaser shall be
deemed to have waived and forever renounced any right to assert a claim for indemnification under this Article 11 for, or any
other claim or cause of action under this Agreement, whether at law or in equity, on account of any such Purchaser Waived Breach.
In no event shall Purchaser be entitled to seek or obtain consequential, speculative, special, punitive or exemplary damages against
Seller.

 

SECTION 11.4         Survival.
Seller Representations and Surviving Covenants shall survive for a period of one hundred eighty (180) days after the Closing Date
(the “Survival Period”), unless a longer or shorter survival period is expressly provided for in this Agreement.
Seller and Purchaser shall each have the right to bring an action or proceeding against the other for the breach of any such Seller
Representations and Surviving Covenants, but only if the party bringing the action for breach (i) first learns of the breach after
Closing, (ii) gives written notice of such breach to the other party within the Survival Period (unless a longer or shorter survival
period is expressly provided for in this Agreement), and (iii) files such action for such breach no later than thirty (30) days
after the written notice of the breach, unless a longer or shorter survival period is expressly provided for in this Agreement;
provided, however, with respect to any actions brought by a party hereunder during the Survival Period but remaining unresolved
as of the expiration of such period, the Survival Period shall extend solely as to such claims until the final adjudication (including
appeals) or settlement of such claims.

 

SECTION 11.5         Notification.
In the event that any indemnified party (“Indemnified Party”) becomes aware of any claim or demand for which
an indemnifying party (an “Indemnifying Party”) may have liability to such Indemnified Party hereunder (an
“Indemnification Claim”), such Indemnified Party shall promptly, but in no event more than thirty (30) days
following such Indemnified Party’s having become actually aware of such Indemnification Claim, notify the Indemnifying Party
in writing of such Indemnification Claim, the amount or the estimated amount of damages sought thereunder to the extent then ascertainable
(which estimate shall not be conclusive of the final amount of such Indemnification Claim), any other remedy sought thereunder,
any relevant time constraints relating thereto and, to the extent practicable, any other material details pertaining thereto;
provided, that no delay on the part of the Indemnified Party in giving any such notice of a Indemnification Claim shall relieve
the Indemnifying Party of any indemnification obligations hereunder except to the extent that the Indemnifying Party is prejudiced
by such delay.

 

SECTION 11.6         Indemnification
as Sole Remedy. If Closing has occurred, the sole and exclusive remedy available to a party in the event of a breach by the
other party to this Agreement of any representation, warranty, covenant or other provision of this Agreement or any Closing Document
which expressly survives the Closing shall be the indemnifications provided for under this Article 11, except as it relates to
re-proration obligations under Article 10 and the indemnification obligations under Section 7.1 and Section 14.2.

 

    	 	54	 

     

    

 

SECTION 11.7         Limits
on Indemnification by Purchaser. Notwithstanding the foregoing provisions of Section 11.2, (a) Purchaser shall not be required
to indemnify Seller or any Seller-Related Entities under Section 11.2 unless the amount for which an indemnity would otherwise
be payable by Purchaser under Section 11.2 exceeds the Basket Limitation and, in such event, Purchaser shall be responsible for
all such amounts, (b) in no event shall the liability of Purchaser with respect to the indemnification provided for in Section
11.2 exceed the Cap Limitation (provided that Purchaser’s obligations under Article 10 with respect to re-prorations and
adjustments shall not be subject to the Basket Limitation or the Cap Limitation), and (c) in the event that Seller obtains Knowledge
of any inaccuracy or breach of any representation, warranty, or covenant of Purchaser contained in this Agreement (a “Seller
Waived Breach”) after the Effective Date but prior to the Closing, and Seller nonetheless proceeds with and consummates
the Closing, then Seller and any Seller-Related Entities shall be deemed to have waived and forever renounced any right to assert
a claim for indemnification under this Article 11 for, or any other claim or cause of action under this Agreement, whether at
law or in equity on account of any such Seller Waived Breach. In no event shall Seller be entitled to seek or obtain consequential,
speculative, special, punitive or exemplary damages against Purchaser.

 

Article
12 

TAX APPEALS

 

SECTION 12.1         Prosecution
and Settlement of Proceedings. If any tax reduction proceedings in respect of the Real Property, relating to any tax years
ending prior to the tax year in which the Closing occurs are pending at the time of Closing, Seller reserves and shall have the
right to continue to prosecute and/or settle the same. Prior to Closing, Seller reserves and shall have the right to initiate
and continue any tax reduction proceedings in respect of any of the Real Property relating to the tax year in which Closing occurs;
provided, however, that Seller shall not settle any such proceeding without Purchaser’s prior written consent, which consent
shall not be unreasonably withheld or delayed. From and after Closing, Purchaser shall have the right to initiate or assume tax
reduction proceedings in respect of the Real Property relating to the tax year in which Closing occurs and shall have the right
to continue to prosecute and/or settle the same. Seller and Purchaser shall, from time to time, each keep the other reasonably
informed of the status of any such tax reduction proceedings.

 

SECTION 12.2         Application
of Refunds or Savings. Any refunds or savings in the payment of taxes resulting from such tax reduction proceedings applicable
to taxes payable with respect to the period prior to the Closing Date shall belong to and be the property of Seller and any refunds
or savings in the payment of taxes applicable to taxes with respect to the period on or after the Closing Date shall belong to
and be the property of Purchaser. All reasonable attorneys’ fees and other expenses incurred in obtaining such refunds or
savings shall be apportioned between Seller, on the one hand, and Purchaser, on the other hand, in proportion to the gross amount
of such refunds or savings payable to Seller and Purchaser, respectively; provided, however, that neither Seller
nor Purchaser shall have any liability for any such fees or expenses in excess of the refund or savings paid to such party unless
such party initiated such proceeding.

 

    	 	55	 

     

    

 

SECTION 12.3         Survival.
The provisions of this Article 12 shall survive Closing until the final resolution of any such tax appeals, notwithstanding any
earlier “true-up” deadline to the contrary.

 

Article
13 

DEFAULT

 

SECTION 13.1         Purchaser’s
Default. If Purchaser fails to consummate the purchase of the Property pursuant to this Agreement or otherwise defaults on
its obligations hereunder 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 such default or breach
is not cured by the earlier of the third (3rd) Business Day after written notice thereof from Seller or the Closing
Date (provided that no notice or cure period shall apply if Purchaser fails to timely deposit any portion of the Earnest Money,
or if Purchaser fails to timely consummate the purchase of the Property or the timely payment of the Purchase Price), Seller shall
be entitled, as its sole remedy, to terminate this Agreement by giving Purchaser written notice of such election prior to or at
Closing and recover the Earnest Money as liquidated damages and not as penalty, in full satisfaction of claims against Purchaser
hereunder. Seller and Purchaser agree that Seller’s damages resulting from Purchaser’s default are difficult, if not
impossible, to determine, and that the Earnest Money is a fair estimate of those damages which has been agreed to in an effort
to cause the amount of such damages to be certain.

 

SECTION 13.2         Seller’s
Default. If Seller fails to consummate the sale of the Property pursuant to this Agreement or otherwise defaults on its obligations
hereunder at or prior to Closing for any reason except failure by Purchaser to perform hereunder, or if prior to Closing any one
or more of Seller’s representations or warranties are breached in any material respect (i.e., in accordance with Section
3.2(g)), and such default or breach is not cured by the earlier of the fifth (5th) Business Day after written notice
thereof from Purchaser or the Closing Date (provided that no notice or cure period shall apply if Seller fails to timely consummate
the sale of the Property hereunder), Purchaser shall elect, as its sole remedy, either (i) to terminate this Agreement by
giving Seller timely written notice of such election prior to or at Closing, and recover the Earnest Money and reimbursement of
Purchaser’s actual out-of-pocket third-party expenses incurred in connection with this Agreement, up to a maximum reimbursement
of $250,000.00, (ii) to enforce specific performance to consummate the sale of the Property hereunder; provided, however,
that if Seller willfully conveys the Property to a third party or third parties, such that the remedy of specific performance is
unavailable to Purchaser, Purchaser shall have the right to seek its actual damages against Seller in an amount not to exceed $1,500,000.00,
or (iii) to waive said failure or breach and proceed to Closing without any reduction in the Purchase Price. In no event shall
Seller be liable for consequential, speculative, remote or punitive damages, or any other damages except as specifically provided
herein, and Purchaser hereby waives and releases any right to seek or collect any such consequential, speculative, remote or punitive
damages, or any damages. Notwithstanding anything herein to the contrary, Purchaser shall be deemed to have elected option (i)
above 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 or actual damages against Seller on or before the date that is ten (10) Business Days following the scheduled Closing
Date or, having given such notice, fails to file a lawsuit asserting such claim or cause of action for specific performance or
damages in the county in which the Earnest Money is deposited within forty five (45) days following the scheduled Closing Date.

 

    	 	56	 

     

    

 

SECTION 13.3         Certain
Limitations. Notwithstanding Sections 13.1 and 13.2 hereof, in no event shall the provisions of Sections 13.1 and 13.2 limit
(a) either Purchaser’s or Seller’s obligation to indemnify the other party, or the damages recoverable by an indemnified
party against the indemnifying party due to, a party’s express obligation to indemnify another party in accordance with this
Agreement, (b)  Purchaser’s or Seller’s respective obligation to pay Closing costs under Section 9.1 hereof,
or the damages recoverable by any party against another party due to a party’s failure to pay such costs, or (c) either Purchaser’s
or Seller’s obligations to pay another party’s legal costs under Section 14.23 hereof.

 

SECTION 13.4         Cross
Defaults under Affiliated Purchase Agreements.

 

(a)           By
Affiliated Sellers. Seller shall be in default under this Agreement immediately upon the default of any of the Affiliated Sellers
under any of the Affiliated Purchase Agreements, and in such event, Purchaser may immediately exercise all rights and remedies
set forth in Section 13.2 as to this Agreement.

 

(b)           By
Purchaser. Purchaser shall be in default under this Agreement immediately upon the default of Purchaser under any of the Affiliated
Purchase Agreements, and in such event, Seller may immediately exercise all rights and remedies set forth in Section 13.1 as to
this Agreement.

 

Article
14 

MISCELLANEOUS

 

SECTION 14.1         Exculpation.

 

(a)           Seller.
Notwithstanding anything to the contrary contained herein (with the sole exception of the terms of the Parent Joinder attached
to this Agreement), Seller’s shareholders, partners, members, and managers, the partners, members or managers of such partners,
members or managers, the shareholders of such partners, members or managers, and the trustees, officers, directors, employees,
agents and security holders of Seller and its partners, members or managers assume no personal liability for any obligations entered
into on behalf of Seller, and their individual assets shall not be subject to any claims of any Person relating to such obligations.
The foregoing shall govern any direct and indirect obligations of Seller under this Agreement.

 

    	 	57	 

     

    

 

(b)           Purchaser.
Notwithstanding anything to the contrary contained herein, Purchaser’s shareholders, partners, members, managers or the partners,
members or managers of such partners members or managers, the shareholders of such partners, members or managers, and the trustees,
officers, directors, employees, agents and security holders of Purchaser and its partners, members or managers assume no personal
liability for any obligations entered into on behalf of Purchaser, and their individual assets shall not be subject to any claims
of any Person relating to such obligations. The foregoing shall govern any direct and indirect obligations of Purchaser under this
Agreement.

 

SECTION 14.2         Broker.

 

(a)           Broker’s
Commission. The parties acknowledge that CB Richard Ellis, Inc. (the “Broker”) has been retained by and
represents Seller as broker in connection with the sale of the Property to Purchaser, and is to be compensated for its services
by Seller, pursuant to a separate written agreement between the Seller Group and the Broker.

 

(b)           Representation
and Indemnity. Each of Seller, on the one hand, and Purchaser, on the other hand, hereby represents and warrants to the other
that it has not disclosed this Agreement or the subject matter hereof to, and has not otherwise dealt with, any real estate broker,
agent or salesman (other than the Broker) so as to create any legal right or claim in any such broker, agent or salesman (other
than the Broker) for a real estate commission or similar fee or compensation with respect to the negotiation and/or consummation
of this Agreement or the conveyance of the Property by Seller to Purchaser. Each of Seller, on the one hand, and Purchaser, on
the other hand, shall indemnify, hold harmless and defend each other from and against any and claims and demands for a real estate
brokerage commission or similar fee or compensation arising out of any claimed dealings with the indemnifying party and relating
to this Agreement or the purchase and sale of the Property (including reasonable attorneys’ fees and expenses and court costs
actually incurred in defending any such claim or in enforcing this indemnity), except for the Broker, whose fee, if any, shall
be paid by Seller.

 

(c)           Survival.
The indemnification provisions of this Section 14.2 shall survive the rescission, cancellation, termination or consummation of
this Agreement.

 

SECTION 14.3         Confidentiality;
Publicity; IRS Reporting Requirements.

 

(a)          Confidentiality.

 

(i)           Purchaser
and Seller, and each of their respective Affiliates, shall hold as confidential all information disclosed in connection with the
transaction contemplated hereby and concerning each other, the Property, this Agreement and the transactions contemplated hereby
that is not generally known to or discoverable by the public, including without limitation the Seller’s Deliveries (collectively,
the “Confidential Information”). The Confidential Information obtained
by or disclosed to Purchaser and Purchaser’s Representatives shall be used by Purchaser and Purchaser’s Representatives
solely for the purpose of Purchaser’s evaluation of the Property and for other uses related to the transaction contemplated
by this Agreement. Neither Purchaser nor Seller shall release any Confidential Information to third parties without the prior written
consent of the other party hereto, except (A) any information which was previously or is hereafter publicly disclosed (other than
in violation of this Agreement, the Access Agreement, or other confidentiality agreements to which Affiliates of Purchaser or Seller
are parties), (B) to such parties’ respective partners, agents, employees, consultants, attorneys, engineers, accountants,
licensees, investors, advisors and lenders (collectively, “Permitted Outside Parties”) of any of the foregoing,
provided that they are advised as to the confidential nature of such information, are instructed to maintain such confidentiality,
and upon request of any other party, enter into confidentiality agreements with respect to the Confidential Information, and (C)
as required by law, court order or other legal process.

 

    	 	58	 

     

    

 

(ii)         Notwithstanding
anything to the contrary herein, Confidential Information shall not include information which (A) is or becomes generally available
to the public other than as a result of a disclosure by a party or the Permitted Outside Parties, (B) was available to a party
or the Permitted Outside Parties on a non-confidential basis prior to its disclosure by any party or its representatives, (C) becomes
available to a party or the Permitted Outside Parties on a non-confidential basis from a Person, other than Seller, Purchaser,
or their respective representatives, who is not otherwise bound by a confidentiality agreement with such party not to transmit
the information to the receiving party or the Permitted Outside Parties, or (D) is independently developed by any employee or agent
of Seller, Purchaser or the Permitted Outside Parties who did not have access to the Confidential Information.

 

(iii)        This
Section 14.3(a) shall survive the termination of this Agreement, but shall not survive the Closing.

 

(b)           Publicity;
SEC filings. Until Closing, neither Seller nor Purchaser shall issue any advertisement, press release or other publicity concerning
this transaction without the review and approval of the other party. Upon Closing, Seller or Purchaser may issue a press release
or other publicity with respect to this Agreement and the transactions contemplated hereby, provided that the content of any such
press release shall be subject to the prior written consent of Purchaser or Seller, as applicable, and in no event shall any such
publicity disclose the identity of Purchaser’s or Seller’s direct or indirect beneficial owners by name, or the consideration
paid for the Property. The foregoing notwithstanding, neither Seller nor any of its constituent parties shall be obligated to make
prior disclosure to, or seek the approval of, Purchaser in connection with disclosures made to its or their attorneys, agents,
and lenders, or any securities filings and associated press releases required in connection with the sale of the Property, including
disclosures to investors or the filing of any Form 8-K or any related filings with the U.S. Securities and Exchange Commission.
This Section 14.3(b) shall survive Closing or the termination of this Agreement.

 

(c)           IRS
Reporting Requirements. For the purpose of complying with any information reporting requirements or other rules and regulations
of the IRS that are or may become applicable as a result of or in connection with the transaction contemplated by this Agreement,
including, but not limited to, any requirements set forth in proposed Income Tax Regulation Section 1.6045-4 and any final or successor
version thereof (collectively, the “IRS Reporting Requirements”), Seller and Purchaser hereby designate and
appoint the Escrow Agent to act as the “Reporting Person” (as that term is defined in the IRS Reporting Requirements)
to be responsible for complying with any IRS Reporting Requirements. The Escrow Agent hereby acknowledges and accepts such designation
and appointment and agrees to fully comply with any IRS Reporting Requirements that are or may become applicable as a result of
or in connection with the transaction contemplated by this Agreement. Without limiting the responsibility and obligations of the
Escrow Agent as the Reporting Person, Seller and Purchaser hereby agree to comply with any provisions of the IRS Reporting Requirements
that are not identified therein as the responsibility of the Reporting Person, including, but not limited to, the requirement that
Seller and Purchaser each retain an executed counterpart of this Agreement for at least four (4) years following the calendar year
of Closing. This Section 14.3(c) shall survive Closing for four (4) years following the calendar year of Closing.

 

    	 	59	 

     

    

 

SECTION 14.4         Escrow
Provisions.

 

(a)           Investment
of Earnest Money. Escrow Agent shall invest the Earnest Money held by Escrow Agent pursuant to Purchaser’s direction
in an interest bearing account at a commercial bank whose deposits are insured by the Federal Deposit Insurance Corporation. The
Escrow Agent shall notify Seller, no later than one (1) Business Day after receipt thereof, that the Escrow Agent has received
any portion of the Earnest Money in immediately available funds, and is holding the same in accordance with the terms of this
Agreement. The Escrow Agent shall invest the Earnest Money only in such accounts as will allow the Escrow Agent to disburse the
Earnest Money or any portion thereof upon no more than one (1) Business Day’s notice.

 

(b)           Payment
on Demand. Prior to the expiration of the Due Diligence Period, upon receipt of any written certification from Purchaser claiming
the Earnest Money pursuant to the provisions of this Agreement, Escrow Agent shall promptly disburse the Earnest Money to Purchaser
and shall thereupon be released and discharged from any further duty or obligation hereunder. Upon receipt of any written certification
from Seller (at any time during the term of this Agreement) or Purchaser (following the expiration of the Due Diligence Period)
claiming the Earnest Money pursuant to the provisions of this Agreement, Escrow Agent shall promptly forward a copy thereof to
the other such party (i.e., Purchaser or Seller, whichever did not claim the Earnest Money pursuant to such notice) and, unless
such other party within ten (10) days thereafter notifies the Escrow Agent of any objection to such requested disbursement of the
Earnest Money (in which case the Escrow Agent shall retain the Earnest Money subject to Section 10.4 below), the Escrow Agent shall
disburse the Earnest Money to the party demanding the same and shall thereupon be released and discharged from any further duty
or obligation hereunder.

 

(c)           Exculpation
of Escrow Agent. It is agreed that the duties of the Escrow Agent are herein specifically provided and are purely ministerial
in nature, and that the Escrow Agent shall incur no liability whatsoever except for its misconduct or negligence, so long as the
Escrow Agent is acting in good faith. Except in the event of the Escrow Agent’s willful misconduct or gross negligence, each
of Seller and Purchaser does hereby release the Escrow Agent from any liability for any error of judgment or for any act done or
omitted to be done by the Escrow Agent in the good faith performance of its duties hereunder and do each hereby indemnify the Escrow
Agent against, and agree to hold, save, and defend the Escrow Agent harmless from, any costs, liabilities, and expenses incurred
by the Escrow Agent in serving as the Escrow Agent hereunder and in faithfully discharging its duties and obligations hereunder.
Seller and Purchaser are aware that Federal Deposit Insurance Corporation coverages apply to a maximum amount of $250,000.00 per
depositor (as may be modified from time to time). Further, Seller and Purchaser do not and will not hold the Escrow Agent liable
for any loss occurring which arises from bank failure or error, insolvency or suspension, or a situation or event which falls under
the above coverages.

 

    	 	60	 

     

    

 

(d)           Stakeholder.
It is acknowledged that the Escrow Agent is acting as a stakeholder only with respect to the Earnest Money. If there is any dispute
as to whether the Escrow Agent is obligated to deliver the Earnest Money or as to whom the Earnest Money is to be delivered following
the expiration of the Due Diligence Period, the Escrow Agent may refuse to make any delivery and may continue to hold the Earnest
Money until receipt by the Escrow Agent of an authorization in writing, signed by Seller and Purchaser, directing the disposition
of the Earnest Money, or, in the absence of such written authorization, until final determination of the rights of the parties
in an appropriate judicial proceeding. If such written authorization is not given, or a proceeding for such determination is not
begun, within thirty (30) days of notice to the Escrow Agent of such dispute, the Escrow Agent may bring an appropriate action
or proceeding for leave to deposit the Earnest Money in a court of competent jurisdiction located in the City of New York, State
of New York pending such determination. The Escrow Agent shall be reimbursed for all costs and expenses of such action or proceeding,
including, without limitation, reasonable attorneys’ fees and disbursements, by the party determined not to be entitled to
the Earnest Money. Upon making delivery of the Earnest Money in any of the manners herein provided, Escrow Agent shall have no
further liability or obligation hereunder.

 

(e)           Interest;
Taxpayer Identification Number. All interest and other income earned on the Earnest Money deposited with the Escrow Agent hereunder
shall be reported for income tax purposes as earnings of Purchaser. Purchaser’s taxpayer identification number shall be delivered
to the Escrow Agent prior to Closing. Escrow Agent shall have no liability for any levies on the Earnest Money made by taxing authorities
based upon the taxpayer identification number or numbers associated with the Earnest Money.

 

(f)           Execution
by Escrow Agent. Escrow Agent has executed this Agreement solely for the purpose of acknowledging and agreeing to the provisions
of this Section 14.4. Escrow Agent’s consent to any modification or amendment of this Agreement, other than to a modification
or amendment of this Section 14.4, shall not be required.

 

SECTION 14.5         Successors
and Assigns; No Third-Party Beneficiaries. The stipulations, terms, covenants and agreements contained in this Agreement shall
inure to the benefit of, and shall be binding upon, the parties hereto and their respective permitted successors and assigns (including
any successor entity after a public offering of stock, merger, consolidation, purchase or other similar transaction involving
a party hereto) and nothing herein expressed or implied shall give or be construed to give to any Person, other than the parties
hereto and such permitted assigns, any legal or equitable rights hereunder.

 

SECTION 14.6         Assignment.

 

(a)           Assignments
by Seller. Notwithstanding any provision of this Agreement to the contrary, Seller may assign or transfer its rights under
this Agreement to a qualified intermediary as may be required for an Exchange under Section 14.25 hereof, without Purchaser’s
prior written consent, provided that Seller shall not be relieved of any obligations or liabilities under this Agreement as a result
of such transfer.

 

    	 	61	 

     

    

 

(b)           Assignments
by Purchaser. This Agreement may not be assigned by Purchaser in whole or in part without the prior written consent of Seller.
Any transfer of a majority of the direct or indirect interests in Purchaser shall be deemed to be an assignment of this Agreement
by Purchaser. Notwithstanding the foregoing, however, Purchaser may assign its rights under this Agreement prior to Closing without
prior written approval of Seller to: (i) any entity that is controlled by, controlling or under common control with Purchaser,
provided that (x) the Purchaser originally named in this Agreement will continue to remain liable under this Agreement notwithstanding
any such assignment, (y) Purchaser shall deliver written notice to Seller of any such assignment at least five (5) Business Days
prior to the Closing Date (which notice shall include the name, entity type, state of formation and signature block of the assignee),
and (z) Purchaser and Purchaser’s assignee shall execute and deliver an assignment and assumption agreement in form reasonably
satisfactory to Seller prior to Closing.

 

SECTION 14.7         Further
Assurances. From time to time, as and when requested by any party hereto, the other party shall execute and deliver, or cause
to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all such further or other
actions as such other party may reasonably deem necessary or desirable to consummate the transactions contemplated by this Agreement.

 

SECTION 14.8         Notices.
Any notice, request or other communication required or permitted to be given hereunder shall be in writing and, except as otherwise
specifically provided herein, shall be delivered by hand or overnight courier (such as United Parcel Service or Federal Express),
or by e-mail provided that a hard copy of such notice is also transmitted by one of the foregoing methods on the same Business
Day. Any such notice shall be considered given on the date of such notice (provided that, with respect to e-mail notices, the
e-mail is sent prior to 5:00 pm Eastern Time and a hard copy is also transmitted in compliance with this Section 14.8). Rejection
or other refusal to accept or inability to deliver because of changed address of which no notice was given shall be deemed to
be receipt of the notice. By giving at least five (5) days’ prior written notice thereof, any party may from time to time
and at any time change its notice address hereunder. Any notice may be given by a party’s counsel on such party’s
behalf.

 

The parties’
respective addresses for notice purposes are as follows. Telephone numbers are provided for reference purposes only, and notice
by telephone shall not be valid.

 

Notices to Seller:

 

c/o Bluerock Real Estate, L.L.C.

712 Fifth Avenue

9th Floor

New York, NY 10019

Attention: Ryan MacDonald

Telephone: (646) 278-4238

E-mail: rmacdonald@bluerockre.com

 

    	 	62	 

     

    

 

With a copy (which shall not constitute notice) to:

 

Bluerock Real Estate, L.L.C.

712 Fifth Avenue

9th Floor

New York, NY 10019

Attention: Michael L. Konig

Telephone: (908) 415-8869

E-mail: mkonig@bluerockre.com

 

And to:

 

Nelson Mullins Riley & Scarborough LLP

Atlantic Station

201 17th Street NW, Suite 1700

Atlanta, GA 30363

Attention: Eric R. Wilensky, Esq.

Telephone: (404) 322-6469

E-mail: eric.wilensky@nelsonmullins.com

 

Notices to Purchaser:

 

KRE Topaz Portfolio Investor LLC

c/o Carter-Haston Holdings, L.L.C.

1230 Peachtree Street NE, Suite 1909

Atlanta, GA 30309

Attention: James A. Shanks

Telephone: (615) 577-4648

E-mail: jshanks@carterhaston.com

 

With a copy (which shall not constitute
notice) to:

 

KRE Topaz Portfolio Investor LLC

c/o Kohlberg Kravis Roberts & Co.

600 Travis Street, Suite 7200

Houston, TX 77002

Attention: Paul S. Wasserman

Telephone: (713) 332-8322

E-mail: paul.wasserman@kkr.com

 

And to:

 

KRE Topaz Portfolio Investor LLC

c/o Kohlberg Kravis Roberts & Co.

9 West 57th Street, Suite 4200

New York, NY 10019

Attention: Michael Friedland

E-mail: michael.friedland@kkr.com

 

    	 	63	 

     

    

 

And to:

 

Waller Lansden Dortch & Davis, LLP

511 Union Street, Suite 2700

Nashville, TN 37219

Attention: Philip F. Head, Esq.

Telephone: (615) 850-8152

E-mail: philip.head@wallerlaw.com

 

During the Transition Period, notices to Purchaser under this
Agreement shall also copy New Property Manager at the following address:

 

c/o Carter-Haston Real Estate Services

3301 West End Avenue

Suite 200

Nashville, TN 37203

Attention: L. Marc Carter

Telephone: (615) 279-9200

E-mail: mcarter@carterhaston.com

 

Notices to the Title
Company/Escrow Agent:

 

First American Title
Insurance Company

Six Concourse Parkway,
Suite 2000

Atlanta, GA 30328

Attention: Barbara
H. Morgan

Telephone: (770) 390-6524

E-mail: bmorgan@firstam.com

 

SECTION 14.9         Entire
Agreement. This Agreement, along with the Exhibits and Schedules hereto, contains all of the terms agreed upon between the
parties hereto with respect to the subject matter hereof, and all understandings and agreements heretofore had or made among the
parties hereto are merged in this Agreement which alone fully and completely expresses the agreement of the parties hereto.

 

SECTION 14.10         Amendments.
This Agreement may not be amended, modified, supplemented or terminated, nor may any of the obligations of Seller or Purchaser
hereunder be waived, except by written agreement executed by the party or parties to be charged. The Escrow Agent’s consent
to any modification or amendment of this Agreement, other than to Section 14.4 hereof, shall not be required. Further, the consent
of Parent to any modification or amendment of this Agreement, other than to the Parent Joinder attached hereto, shall not be required.

 

    	 	64	 

     

    

 

SECTION 14.11         No
Waiver. No waiver by any party of any failure or refusal by any other party to comply with its obligations hereunder shall
be deemed a waiver of any other or subsequent failure or refusal to so comply.

 

SECTION 14.12         Governing
Law. This Agreement shall be governed by, interpreted under, and construed and enforced in accordance with, the laws of the
State of New York.

 

SECTION 14.13         Submission
to Jurisdiction; Waiver of Jury Trial. To the fullest extent permissible by Applicable Law, Seller and Purchaser irrevocably
submit to the jurisdiction of the federal and state courts having jurisdiction in the City of New York, New York for the purposes
of any suit, action or other proceeding arising out of this Agreement or any transaction contemplated hereby. Seller and Purchaser
further agree that service of any process, summons, notice or document by U.S. registered mail to such party’s or parties’
respective address set forth above shall be effective service of process for any action, suit or proceeding in the State of New
York with respect to any matters to which it has submitted to jurisdiction as set forth in the immediately preceding sentence.
To the fullest extent permissible by Applicable Law, each of Seller and Purchaser also irrevocably and unconditionally waives
trial by jury and any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the
transactions contemplated hereby in the federal and state courts having jurisdiction in the City of New York, New York. To the
fullest extent permissible by Applicable Law, each of Seller and Purchaser also irrevocably and unconditionally waives and agrees
not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in
an inconvenient forum.

 

SECTION 14.14         Severability.
If any term or provision of this Agreement or the application thereof to any Person or circumstances shall, to any extent, be
invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances
other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of
this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

SECTION 14.15         Headings.
The headings of the various Articles and Sections of this Agreement have been inserted only for purposes of convenience, are not
part of this Agreement and shall not be deemed in any manner to modify, explain, expand or restrict any of the provisions of this
Agreement.

 

SECTION 14.16         Counterparts.
This Agreement may be executed in two or more counterparts and by facsimile or electronic (e.g., pdf) signatures, which taken
together still constitute collectively one agreement. In making proof of this Agreement it shall not be necessary to produce or
account for more than one such counterpart with each party’s counterpart, facsimile or electronic signature.

 

SECTION 14.17         Acceptance
of Deed. The acceptance of the Deed by Purchaser shall be deemed full compliance by Seller of all of Seller’s obligations
under this Agreement, except for those obligations of Seller which are specifically stated to survive the delivery of the Deed
or Closing hereunder pursuant to the terms of this Agreement.

 

    	 	65	 

     

    

 

SECTION 14.18         Construction.
The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement, and that the normal rule
of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or of any exhibits, schedules or amendments hereto.

 

SECTION 14.19         Recordation.
Neither this Agreement nor any memorandum or notice of this Agreement may be recorded by any party hereto without the prior written
consent of the other parties hereto; provided, however, Purchaser’s recordation of a notice of lis pendens shall
be permitted if Purchaser is seeking an action for specific performance. In furtherance of the foregoing, Purchaser hereby indemnifies
Seller from and against any and all Losses arising out of a breach of this Section 14.19. The provisions of this Section 14.19
shall survive the Closing or any prior termination of this Agreement.

 

SECTION 14.20         Time
is of the Essence. Seller and Purchaser agree that time is of the essence with respect to the parties’ obligations under
this Agreement.

 

SECTION 14.21         Business
Days; Calculation of Time Periods. Seller and Purchaser agree that if any notice or action required or permitted by this Agreement
falls on a date which is not a Business Day, then such date shall be extended to the next Business Day. The final day of any time
period under this Agreement or any deadline under this Agreement shall include the period of time through and including such final
day or deadline. The final day of any specified time period or deadline shall be deemed to end at 5:00 p.m. Eastern Time unless
otherwise specifically indicated herein.

 

SECTION 14.22         Survival.

 

(a)           Any
obligations or liabilities of Seller or Purchaser hereunder shall survive Closing or earlier termination of this Agreement solely
to the extent expressly provided herein.

 

(b)           Unless
expressly stated otherwise, all terms and provisions contained in this Agreement shall not survive Closing.

 

SECTION 14.23         Legal
Costs. The parties hereto agree that they shall pay directly any and all legal costs which they have incurred on their own
behalf in the preparation of this Agreement, and all deeds and other agreements pertaining to this transaction, and that such
legal costs shall not be part of the Closing costs. In addition, if either Purchaser or Seller brings any suit or other proceeding
with respect to the subject matter or the enforcement of this Agreement, the prevailing party (as determined by the court, agency
or other authority before which such suit or proceeding is commenced), in addition to such other relief as may be awarded, shall
be entitled to recover reasonable attorneys’ fees, expenses and costs of investigation actually incurred. The foregoing
includes reasonable attorneys’ fees, expenses and costs of investigation (including those incurred in appellate proceedings),
costs incurred in establishing the right to indemnification, or in any action or participation in, or in connection with, any
case or proceeding under Chapter 7, 11 or 13 of the Bankruptcy Code (11 United States Code Sections 101 et seq.), or any successor
statutes. The provisions of this Section 14.23 shall survive Closing or any termination of this Agreement without limitation.

 

    	 	66	 

     

    

 

SECTION 14.24         Intentionally
omitted.

 

SECTION 14.25         Exchange.
Seller or Purchaser may desire to effectuate a tax-deferred “1031” exchange, including but not limited to a “reverse
like kind exchange” (an “Exchange”) in connection with the purchase and sale of any or all of the Real
Property. Purchaser and Seller hereby agree to reasonably cooperate with each other in connection with an Exchange, provided that:
(a) all documents executed by any party in connection with an Exchange shall be subject to the prior reasonable approval of the
other party, and all such Exchange documents shall acknowledge that the other party is acting solely as an accommodating party
to such Exchange, the other party shall have no liability with respect thereto, the other party is making no representation or
warranty that the transactions qualify as a tax-deferred exchange under Section 1031 of the Internal Revenue Code or any applicable
state or local laws, and the other party shall have no liability whatsoever if any such transactions fail to so qualify; (b) no
Exchange shall result in the non-exchanging party or parties incurring any additional costs or liabilities, and each party shall
indemnify, defend and hold the other harmless against any such additional claims, causes of action, costs and liabilities; (c)
no Exchange shall result in any increased risks or any adverse tax consequences to the non-exchanging party or parties; (d) in
no event shall the non-exchanging party or parties be obligated to acquire any property or otherwise be obligated to take title,
or appear in the records of title, to any property in connection with an Exchange; and (e) in no event shall an exchanging party’s
consummation of such Exchange constitute a condition precedent to its obligations under this Agreement, and an exchanging party’s
failure or inability to consummate such Exchange for any reason or for no reason at all shall not be deemed to excuse or release
such party from its obligations under this Agreement. Any party pursuing an Exchange shall indemnify and hold the other parties
harmless from and against all claims, demands, actions, proceedings, damages, losses, liabilities, costs and expenses resulting
from such party’s Exchange. The indemnification provisions of this Section 14.25 shall survive Closing or any termination
of this Agreement.

 

SECTION 14.26         Effect
of Affiliated Purchase Agreements.

 

(a)           Contemporaneously
herewith, (i) each of Sovereign Seller, Leigh House Seller, and Preston View Seller, as sellers, and Purchaser, as purchaser, have
entered into the Three Property Purchase Agreement with respect to the purchase and sale of each of the Sovereign Property, the
Leigh House Property, and the Preston View Property, (ii) Landings at Four Corners Seller and Purchaser have entered into the Landings
at Four Corners Purchase Agreement with respect to the Landings at Four Corners Property, and (iii) Sorrel Phillips Creek Ranch
Seller and Purchaser have entered into the Sorrel Phillips Creek Ranch Purchase Agreement with respect to the Sorrel Phillips Creek
Ranch Property. As of the Effective Date, closing under the Three Property Purchase Agreement and the Landings at Four Corners
Purchase Agreement is scheduled to occur prior to Closing under this Agreement.

 

(b)           Seller
and Purchaser specifically agree and acknowledge that, except as otherwise specifically provided in Section 14.27 hereof, in Section
14.27 of the Three Property Purchase Agreement, in Section 14.27 of the Landings at Four Corners Purchase Agreement, or in Section
14.27 of the Sorrel Phillips Creek Ranch Purchase Agreement, (i) a termination of this Agreement shall also automatically terminate
the Affiliated Purchase Agreements, and (ii) a termination of any of the Affiliated Purchase Agreements shall also automatically
terminate this Agreement.

 

    	 	67	 

     

    

 

SECTION 14.27         Special
Provisions Regarding Partial Termination.

 

(a)           Purchaser’s
Partial Termination Rights upon Special Casualty or Special Condemnation.

 

(i)           As
used in this Section 14.27(a):

 

(A)         A
“Special Casualty” shall mean any damage to the Real Property or any portion thereof by fire or other casualty
that is expected to cost in excess of ten percent (10%) of the Purchase Price to repair (as determined by the independent insurance
adjuster designated by Seller’s insurance company).

 

(B)         A
“Special Condemnation” shall mean any condemnation or conveyance in lieu of condemnation for the Real Property
which meets the standards for a “Material Condemnation” under Section 9.2(d), and for which either (i) the cost of
restoration is expected to exceed ten percent (10%) of the Purchase Price (as determined by a general contractor selected by Purchaser
that is reasonably acceptable to Seller) or (ii) results in a diminution in value of the Property by more than ten percent (10%)
of the Purchase Price (as determined by an MAI certified appraiser selected by Purchaser that is reasonably acceptable to Seller).

 

(C)         A
“Terminated Property” shall mean the Property, if the Property is affected by a Special Casualty or Special
Condemnation, and if Purchaser therefore elects to terminate this Agreement pursuant to this Section 14.27(a).

 

(D)         The
“Remaining Properties” shall mean the remainder of the Property Group, if Purchaser has a right to terminate,
and does terminate, this Agreement pursuant to this Section 14.27(a).

 

(ii)         In
the event of a Special Casualty or Special Condemnation at the Property, Purchaser may elect to terminate this Agreement by written
notice to Seller, whereupon the Property shall thereafter constitute a Terminated Property, the remainder of the Property Group
shall constitute Remaining Properties, and Purchaser shall proceed to close on the Remaining Properties under the Affiliated Purchase
Agreements pursuant to the terms of such agreements, in which event: (A) the Earnest Money under this Agreement shall, at Purchaser’s
election, either be applied to the payment of the purchase price for the Remaining Properties or returned to Purchaser, and (C)
both parties shall be relieved from all obligations and liabilities arising hereunder related to the Property, except for any provisions
hereof that expressly survive the termination of this Agreement (and then only to the extent such provisions apply to the Property).
For the avoidance of doubt, if Purchaser exercises its rights as contemplated in this Section 14.27(a)(ii), the Affiliated Purchase
Agreements shall remain in full force and effect notwithstanding anything herein or in the Affiliated Purchase Agreements to the
contrary. If Purchaser elects to close over a Special Casualty or Special Condemnation, the terms of Section 9.2 shall apply.

 

    	 	68	 

     

    

 

(b)          Purchaser’s
Partial Termination Rights as to Affiliated Purchase Agreements.

 

(i)           If
Purchaser has a right to terminate, and does terminate, the Three Property Purchase Agreement pursuant to Section 14.27 thereof,
then, notwithstanding anything in this Agreement to the contrary, such termination shall apply solely to the property terminated
thereby, and in such event, this Agreement, the Three Property Purchase Agreement (as to the non-terminated properties) and the
other Affiliated Purchase Agreements shall remain in full force and effect.

 

(ii)         If
Purchaser has a right to terminate, and does terminate, the Sorrel Phillips Creek Ranch Purchase Agreement pursuant to Section
14.27 thereof, then, notwithstanding anything in this Agreement to the contrary, such termination shall apply solely to the Sorrel
Phillips Creek Ranch Purchase Agreement, and in such event, this Agreement and the remaining Affiliated Purchase Agreements shall
remain in full force and effect.

 

(iii)        If
Purchaser has a right to terminate, and does terminate, the Landings at Four Corners Purchase Agreement pursuant to Section 14.27
thereof, then, notwithstanding anything in this Agreement to the contrary, such termination shall apply solely to the Landings
at Four Corners Purchase Agreement, and in such event, this Agreement and the remaining Affiliated Purchase Agreements shall remain
in full force and effect.

 

(c)           In
the event of a conflict between the terms of this Section 14.27 and any other provision of this Agreement, the terms of this Section
14.27 shall control.

 

[REMAINDER OF PAGE LEFT BLANK;

SIGNATURES BEGIN ON NEXT PAGE]

 

    	 	69	 

     

    

 

IN WITNESS WHEREOF,
Seller and Purchaser have executed this Agreement, to be effective as of the Effective Date.

 

	 	SELLER:
	 	 
	 	BR WORLD GATEWAY, LLC, a Delaware limited liability company
	 	 	 	 
	 	By:	BRG World Gateway Manager, LLC, a Delaware limited liability company, its Manager
	 	 	 	 
	 	 	By:	 /s/ Jordan B. Ruddy
	 	 	 	Name: Jordan B. Ruddy
	 	 	 	Title: Authorized Signatory 

 

[SIGNATURE PAGE TO PURCHASE AND SALE
AGREEMENT]

[SIGNATURES CONTINUE ON THE FOLLOWING
PAGES]

 

    	 	70	 

     

    

 

	 	PURCHASER:
	 	 
	 	KRE TOPAZ PORTFOLIO INVESTOR LLC, 
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	/s/  Michael Friedland
	 	 	Name:	Michael Friedland
	 	 	Title:	VP

 

JOINDER OF NEW PROPERTY MANAGER

 

New Property Manager has executed this
Agreement for the limited purpose of agreeing to the terms of Section 3.4(a) applicable to it.

 

	 	NEW PROPERTY MANAGER:
	 	 
	 	CHRES/MANAGEMENT, LLC, a Tennessee limited liability company 
	 	 	 	 
	 	By:	/s/ James A. Shanks
	 	 	Name: 	James A. Shanks
	 	`	Title:  	Authorized Member

 

[SIGNATURE PAGE TO PURCHASE AND SALE
AGREEMENT]

[SIGNATURES CONTINUE ON THE FOLLOWING
PAGES]

 

    	 	71	 

     

    

 

JOINDER OF ESCROW AGENT

 

Escrow Agent has executed this Agreement
for the limited purposes set forth herein.

 

	 	ESCROW AGENT:
	 	 
	 	FIRST AMERICAN TITLE INSURANCE COMPANY
	 	 	 	 
	 	By:	/s/ Myra A. Kellner 
	 	 	Name:	Myra A. Kellner
	 	`	Title:  	Escrow Officer

 

[SIGNATURE PAGE TO PURCHASE AND SALE
AGREEMENT]

[SIGNATURES CONTINUE ON THE FOLLOWING
PAGES]

 

    	 	72	 

     

    

  

Parent
JOINDER

 

This joinder (this
“Parent Joinder”) is attached to and made a part of the foregoing Agreement and all terms capitalized but not
defined herein shall have the respective meanings given to them in the Agreement. The undersigned, BLUEROCK RESIDENTIAL GROWTH
REIT, INC., a Maryland corporation (“Parent”), for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, hereby duly executes with proper authority, joins in the execution of this Agreement, and agrees
that it is a party to the Agreement and is jointly and severally liable, as a principal and not as a surety, solely for Seller’s
obligations under Section 10.10 and for any indemnity obligations of Seller arising under Section 11.1 hereof; provided, however,
that any claim brought hereunder must be brought within one hundred eighty (180) days following the Closing Date, failing which,
Purchaser shall be deemed to have waived and forever renounced any right to assert a claim pursuant to this Parent Joinder under
Sections 10.10 and 11.1 for any claim or cause of action under the Agreement whether at law or in equity. Purchaser shall have
the right to proceed directly against Parent without first making written demand to Seller (and without any obligation to bring
suit against Seller) for the satisfaction of any such obligations.

 

Parent represents and
warrants that its Tangible Net Worth (as hereinafter defined) exceeds the Cap Limitation. Until the expiration of the Survival
Period (or if Purchaser makes a claim against any Seller during the Survival Period, until the final adjudication (including appeals)
or settlement of such claim), Parent shall at all times: (i) remain an entity in good standing and not legally dissolve; (ii) maintain
a Tangible Net Worth, measured on a consolidated basis, in an amount not less than the Cap Limitation, and (iii) not sell, dispose
or make distributions of assets of Parent that would cause a breach of the foregoing financial covenants. “Tangible Net
Worth” means the excess of total assets over total liabilities, in each case as determined in accordance with generally
accepted accounting principles consistently applied (“GAAP”), excluding, however, from the determination of
total assets all assets which would be classified as intangible assets under GAAP including goodwill, licenses, patents, trademarks,
trade names, copyrights, and franchises.

 

Parent is an indirect
owner of Seller, will derive substantial benefits from the transactions described in the Agreement, and acknowledges that the execution
of this Parent Joinder is a material inducement and condition to Purchaser’s execution of the Agreement. Parent represents
and warrants that it has the legal right, power, authority and capacity to execute this Parent Joinder, that such execution does
not violate the organizational documents of, or any other agreement or instrument by which Parent is bound, and that this Parent
Joinder is binding and enforceable against Parent. Parent acknowledges and agrees that this Parent Joinder may not be assigned
to any other Person without Purchaser’s prior written consent (which may be withheld in Purchaser’s sole discretion)
and shall be binding upon Parent’s successors and assigns.

 

Parent unconditionally
waives any guarantor or suretyship defenses that might otherwise be available to it with respect to its obligations under this
Parent Joinder. The terms of this Joinder shall survive Closing until the expiration of the Survival Period (as the same may be
extended pursuant to Section 11.4).

 

    	 	73	 

     

    

 

The provisions set
forth in Section 14.1, Section 14.3, and Section 14.5 through Section 14.27, inclusive, of the Agreement are hereby incorporated
by reference into this Parent Joinder as if fully set forth herein, provided that the undersigned shall be the “Seller”
under such Sections.

 

[REMAINDER OF PAGE LEFT BLANK;

SIGNATURE APPEARS ON NEXT PAGE]

 

    	 	74	 

     

    

  

	 	PARENT:
	 	 
	 	BLUEROCK RESIDENTIAL GROWTH REIT, INC., a Maryland corporation
	 	 	 	 
	 	By:	/s/ Michael Konig
	 	 	Name: 	Michael Konig
	 	 	Title: 	Authorized Signatory

 

[SIGNATURE PAGE TO PARENT JOINDER TO

PURCHASE AND SALE AGREEMENT]

[END OF SIGNATURES]

 

    	 	75	 

     

    

  

Schedule A

 

Legal
description of Land

 

PARCEL 1 (Fee Estate)

 

Parcel A-2 of WORLD GATEWAY PHASE 3, according
to the Plat thereof as recorded in Plat Book 46, Pages 10 through 12, inclusive, of the Public Records of Orange County, Florida.

 

PARCEL 2 (Easement Estate)

 

Non-exclusive easement rights arising under
that certain Grant of Signage Easement executed by World Gateway Property Owners Association, Inc., in favor of GCB Associates,
Ltd., and Orlando Gateway, LLC, dated December 29, 2000 and recorded December 29, 2000 in Official Records Book 6161, Page 5064
of the Public Records of Orange County, Florida.

 

AND

 

Those certain easements created in Article
VI of the Declaration of Covenants, Conditions and Restrictions for the Green Project, Orange County, Florida, recorded January
12, 1995 in Official Records Book 4843, Page 1448; Supplemental Declaration recorded June 5, 1997 in Official Records Book 5266,
Page 4882 and recorded September 17, 1997 in Official Records Book 5328, Page 1945; First Amendment recorded November 26, 1997,
in Official Records Book 5371, Page 1159; Supplemental Declaration recorded in Official Records Book 5816, Page 4379 and Second
Amendment recorded in Official Records Book 5847, Page 3397, of the Public Records of Orange County, Florida; Third Amendment recorded
in Official Records Book 6600, Page 2868; Fourth Amendment recorded in Official Records Book 7656, Page 3988 and Fifth Amendment
recorded in Official Records Book 9934, Page 2784 of the Public Records of Orange County, Florida.

 

AND

 

Together with an undivided interest in
and to easement for common area pursuant to Article VIII of the Declaration of Covenants, Conditions and Restrictions as recorded
in O.R. Book 4843, Page 1448.

 

And together with the benefit of easement
for ingress and egress over and across Tract D (Satay Drive) as provided for and set forth on the Plat of World Gateway Phase 3
according to the plat thereof as recorded in Plat Book 46, Pages 10 through 12, and affected by that certain Quitclaim Deed dated
December 29, 2000 and recorded December 29, 2000 in Official Records Book 6161, Page 4998, all of the Public Records of Orange
County, Florida.

 

    	 	76	 

     

    

 

Schedule B

 

list
of seller’s deliveries

 

Please see attached.

 

    	 	77	 

     

    

 

Schedule C

 

INVENTORY OF PERSONAL PROPERTY

 

Please see attached.

 

    	 	78	 

     

    

 

Schedule D

 

EXCLUDED
PERSONAL PROPERTY

 

Please see attached.

 

    	 	79	 

     

    

 

Schedule 3.1

 

SELLER’S
CORE DELIVERIES

 

Any and all information contained on that certain website with
a domain name of: ______________________________. [NTD: At execution, download/delete privileges
will be revoked and an email of the images of the site will be sent to both parties. A new site will be created for any incremental
requests/documents.]

 

    	 	80	 

     

    

 

Schedule 3.1(h)

 

litigation

 

Please see attached.

 

    	 	81	 

     

    

 

Schedule 3.1(i)

 

NOTICES
OF VIOLATION

 

Please see attached.

 

    	 	82	 

     

    

 

Schedule 3.1(j)

 

contracts

 

Please see attached.

 

    	 	83	 

     

    

 

Schedule 3.1(k)

 

RENT
ROLL

 

Please see attached.

 

    	 	84	 

     

    

 

Schedule 3.1(q)

 

INSURANCE CERTIFICATE

 

Please see attached.

 

    	 	85	 

     

    

 

Exhibit A

 

FORM
OF BILL OF SALE AND ASSIGNMENT

 

 

 

BILL OF SALE AND ASSIGNMENT AND ASSUMPTION
OF 

LEASES, CONTRACTS AND GENERAL INTANGIBLES

 

THIS BILL OF SALE AND
ASSIGNMENT AND ASSUMPTION OF LEASES, CONTRACTS AND GENERAL INTANGIBLES (this “Agreement”) is made and entered
into this ____ day of _____, 2019, by and between BR WORLD GATEWAY, LLC, a Delaware limited liability company (“Seller”),
and ___________________, a ___________ (“Purchaser”).

 

WITNESSETH:

 

WHEREAS, Seller and
[Purchaser] have previously entered into that certain Purchase and Sale Agreement, dated as of June ____, 2019 [DESCRIBE AMENDMENTS,
IF APPLICABLE] (the “Purchase Agreement”);

 

WHEREAS, concurrently
with the execution and delivery of this Agreement and pursuant to the Purchase Agreement, Seller is conveying to Purchaser, by
Special Warranty Deed, (i) that certain tracts or parcels of real property located in Orange County, Florida, and more particularly
described on Exhibit A, attached hereto and made a part hereof (the “Land”), (ii) the rights, easements
and appurtenances pertaining to the Land (the “Related Rights”), and (iii) the buildings, structures,
fixtures and other improvements on and within the Land (the “Improvements”; and the Land, the Related Rights
and the Improvements being sometimes collectively referred to as the “Real Property”);

 

WHEREAS, Seller has
agreed to convey to Purchaser certain personal property and assign to Purchaser certain leases, service contracts, and intangible
rights as hereinafter set forth;

 

NOW, THEREFORE, in
consideration of the receipt of Ten Dollars ($10.00), the assumptions by Purchaser hereinafter set forth and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser agree as follows:

 

1.           Bill
of Sale.

 

(a)           Seller
hereby sells, assigns, transfers and conveys to Purchaser, without representation or warranty, all of Seller’s right, title
and interest in, to and under the Personal Property and the Intangible Property.

 

(b)           “Personal
Property” shall have the meaning ascribed to such term in the Purchase Agreement.

 

    	 	86	 

     

    

 

(c)           “Intangible
Property” shall have the meaning ascribed to such term in the Purchase Agreement.

 

(d)           Seller
hereby binds itself, its legal representatives, successors and assigns, to WARRANT, and FOREVER DEFEND title to the Personal Property
and Intangible Property unto Purchaser, its legal representatives, successors and assigns, against every Person claiming by, through
or under Seller, but against no other.

 

2.           Assignment
and Assumption of Leases.

 

(a)           Seller
hereby sells, assigns, transfers and conveys to Purchaser all of Seller’s right, title and interest as landlord in, to and
those Leases (as defined in the Purchase Agreement) which are described in Exhibit B attached to this Agreement, together
with any and all unapplied Refundable Security Deposits (as defined in the Purchase Agreement). The Refundable Security Deposits
are set forth on Exhibit B. The assignment of the Refundable Security Deposits has been made by means of a credit or payment
on the closing statement executed by Seller and Purchaser pursuant to the Purchase Agreement.

 

(b)           Purchaser
hereby assumes all of the covenants, agreements, conditions and other terms and provisions stated in the Leases which, under the
terms of the Leases, are to be performed, observed, and complied with by the landlord from and after the date of this Agreement.
Purchaser acknowledges that Purchaser shall become solely responsible and liable as landlord under the Leases for obligations arising
or accruing from and after the date hereof. It is specifically agreed between Seller and Purchaser that Seller shall remain liable
for the performance of the obligations to be performed by Seller under the described in Exhibit B which were required to
be performed prior to (but not from and after) the date hereof.

 

(c)           Purchaser
shall indemnify, hold harmless and defend Seller from and against any and all claims, demands, causes of action, liabilities, losses,
costs, damages and expenses (including reasonable attorneys’ fees and expenses and court costs incurred in defending any
such claim or in enforcing this indemnity) that may be incurred by Seller by reason of the failure of Purchaser to perform, observe
and comply with the landlord’s obligations under any of the Leases arising or accruing during the period from and after the
date hereof, including without limitation, claims made by tenants with respect to the Refundable Security Deposits (to the extent
paid or assigned to Purchaser or for which Purchaser has received a credit or payment at Closing). Seller shall indemnify, hold
harmless and defend Purchaser from and against any and all claims, demands, causes of action, liabilities, losses, costs, damages
and expenses (including reasonable attorneys’ fees and expenses and court costs incurred in defending any such claim or in
enforcing this indemnity) that may be incurred by Purchaser by reason of the failure of Seller to perform, observe and comply with
the landlord’s obligations under any of the Leases arising or accruing during the period prior to the date hereof, including
without limitation, claims made by tenants with respect to the Refundable Security Deposits arising before the date hereof (to
the extent such Refundable Security Deposits were not paid or assigned to Purchaser or for which Purchaser did not receive a credit
or payment at Closing).

 

    	 	87	 

     

    

 

(d)           For
purposes of this Paragraph 2, the word “landlord” means the landlord, lessor or other equivalent party under any of
the Leases, and the word “tenant” means the tenant, lessee or other equivalent party under any of the Leases.

 

3.           Assignment
and Assumption of Contracts.

 

(a)           Seller
hereby sells, assigns, transfers and conveys to Purchaser all of Seller’s right, title and interest in, to and under those
service, supply and similar agreements set forth on Exhibit C, attached hereto and made a part hereof (the “Contracts”).

 

(b)           Purchaser
hereby assumes all of the covenants, agreements, conditions and other terms and provisions stated in the Contracts which, under
the terms of the Contracts, are to be performed, observed, and complied with by the property owner from and after the date of this
Agreement. Purchaser acknowledges that Purchaser shall become solely responsible and liable under the Contracts for obligations
arising or accruing from and after the date hereof, including with respect to any and all payments coming due under the Contracts
for which Purchaser has received a credit or payment on the closing statement executed by Purchaser and Seller (the “Credited
Payments”). It is specifically agreed between Seller and Purchaser that Seller shall remain liable for the performance
of the obligations to be performed by Seller under the Contracts which were required to be performed prior to (but not from and
after) the date hereof.

 

(c)           Purchaser
shall indemnify, hold harmless and defend Seller from and against any and all claims, demands, causes of action, liabilities, losses,
costs, damages and expenses (including reasonable attorneys’ fees and expenses and court costs incurred in defending any
such claim or in enforcing this indemnity) that may be incurred by Seller by reason of the failure of Purchaser to perform, observe
and comply with its obligations under any of the Contracts arising or accruing during the period from and after the date hereof,
including without limitation, claims made by any other contract party with respect to the Credited Payments (to the extent paid
or assigned to Purchaser or for which Purchaser received a credit or payment at Closing). Seller shall indemnify, hold harmless
and defend Purchaser from and against any and all claims, demands, causes of action, liabilities, losses, costs, damages and expenses
(including reasonable attorneys’ fees and expenses and court costs incurred in defending any such claim or in enforcing this
indemnity) that may be incurred by Purchaser by reason of the failure of Seller to perform, observe and comply with its obligations
under any of the Contracts arising or accruing during the period prior to the date hereof, including without limitation, claims
made by any other contract party with respect to the Credited Payments, arising before the date hereof (to the extent such Credited
Payments were not paid or assigned to Purchaser or for which Purchaser did not receive a credit or payment at Closing).

 

4.           Qualifications.
This Agreement is subject to those provisions of the Purchase Agreement limiting Seller’s liability to Purchaser, including
but not limited to Article 11 of the Purchase Agreement.

 

    	 	88	 

     

    

 

5.           Counterparts.
This Agreement may be executed in two or more identical counterparts, and it shall not be necessary that any one of the counterparts
be executed by all of the parties hereto. Each fully or partially executed counterpart shall be deemed an original, but all of
such counterparts taken together shall constitute one and the same instrument.

 

6.           Successors
and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the successors, executors, administrators,
legal representatives and assigns of the parties hereto.

 

7.           Governing
Law. This Agreement shall be construed under and enforced in accordance with the laws of the State of New York.

 

EXECUTED effective
as of the date first above written.

 

	SELLER:	 	PURCHASER:
	 	 	 
	BR WORLD GATEWAY, LLC, 	 	___________________________, 
	a Delaware limited liability company	 	a ________________________
	 	 	 
	By:	BRG World Gateway Manager, LLC, 	 	By: 	                                     
	 	a Delaware limited liability company, 	 	Name: 	 
	 	its Manager	 	Title: 	 
	 	 	 	 	 
	 	By:	 	 	 	 
	 	 	Name: 	 	 	 	 
	 	 	Title: 	 	 	 	 

 

Exhibits to Bill of Sale and Assignment

 

A - Legal Description of Land

 

B - List of Assumed Contracts

 

    	 	89	 

     

    

 

Exhibit B

 

FORM
OF TENANT NOTICE

 

NOTICE TO TENANT

 

__________________ ____, 2019

 

		To:	Tenants of ARIUM Palms at World Gateway Apartments

 

		Re:	Sale by BR WORLD GATEWAY, LLC, a Delaware limited
liability company

(the “Landlord”),
to ____________________________, a ________________ (the “New Landlord”), of the property known as “ARIUM
Palms at World Gateway Apartments,” located at 9000 Avenue Pointe Circle, Orlando, Florida 32821 (the “Property”)

 

Dear Tenant:

 

Please be advised that
the Property has been sold and your lease (the “Lease”) has been assigned by Landlord to New Landlord. New Landlord
has assumed all of the obligations under your Lease accruing from and after this day, including any obligations to return your
security deposit, if any, in accordance with the terms of your Lease.

 

Until further notice,
all correspondence and notices shall be directed, and all rents, additional rents and other charges under the Lease shall be paid,
to New Landlord at the following address: _________________________________________________________.

 

Please make all rent checks payable to _________________________________.

 

Your security deposit, if any, under the
Lease has been transferred to New Landlord.

 

Thank you for your assistance and cooperation
during this transition.

 

[Signatures commence on the following
page]

 

     

     

    

	LANDLORD:	 
	 	 
	BR WORLD GATEWAY, LLC, 	 
	a Delaware limited liability company	 
	 	 	 	 
	By:	BRG World Gateway Manager, LLC, 	 
	 	a Delaware limited liability company, 	 
	 	its Manager	 
	 	 	 	 
	 	By:	 	 
	 		Name: 	 	 
	 		Title:	 	 

 

[SIGNATURES CONTINUED ON FOLLOWING
PAGE]

 

     

     

    

 

Exhibit C

 

FORM OF 

CONDOMINIUM CONVERSION PROHIBITION AGREEMENT

 

	
         

        Return after recording to:

         

        ____________________________

        ____________________________

        ____________________________

        ____________________________

         

         
	
         

         

         

SPACE ABOVE THIS LINE FOR RECORDER’S
USE

 

ARIUM Palms at World Gateway Apartments

 

PROHIBITION AGAINST

CONDOMINIUM CONVERSION AGREEMENT

 

THIS PROHIBITION AGAINST
CONDOMINIUM CONVERSION AGREEMENT (the “Condominium Agreement”) is made and entered into as of __________________,
2019, by and between _____________________ (“Purchaser”), and BR WORLD GATEWAY, LLC, a Delaware limited liability
company (“Seller”).

 

WITNESSETH:

 

WHEREAS, Seller and
[Purchaser] have entered into that certain Purchase and Sale Agreement dated as of June ____, 2019 (the “Sale Agreement”)
relating to the sale by Seller to Purchaser of that parcel of real property located in Orange County, Florida, and more particularly
described on Exhibit “A” attached hereto (the “Land”), together with certain apartment buildings
and related personal property and other rights located thereon and relating thereto (the “Improvements”; and
the Land and the Improvements collectively referred to herein as the “Property”).

 

WHEREAS, as a condition
to Seller conveying the Property to Purchaser and in consideration of Seller accepting the purchase price and conveying the Property
as set forth in the Sale Agreement to Purchaser, Purchaser has agreed with Seller to execute and record this Condominium Agreement
providing for certain restrictions relating to the future use of the Property for a period of time after the date of this Condominium
Agreement as more fully set forth herein.

 

     

     

    

 

NOW, THEREFORE, in
consideration of the mutual covenants and undertakings set forth herein, and other good and valuable consideration, the receipt
and sufficiency of which hereby are acknowledged, Seller and Purchaser hereby agree as follows:

 

Section 1.            Definitions
and Interpretation. The following terms shall have the respective meanings assigned to them in this Section I unless the context
in which they are used clearly requires otherwise:

 

“Condominium
Conversion” - Shall mean the filing or recording of any document providing for the conversion of the Property to a form
of condominium ownership under any state or local statute or ordinance.

 

“County”
- The county in which the Land is located.

 

“Deed”
- Special Warranty Deed.

 

“Event of
Default” - As defined in Section 11 hereof.

 

“First Mortgage”
– As defined in Section 20(a) hereof.

 

“First Mortgagee”
– As defined in Section 20(a) hereof.

 

“Hazardous
Materials” or “Hazardous Substances” - Shall mean (i) hazardous wastes, hazardous materials, hazardous
substances, hazardous constituents, toxic substances or related materials, whether solids, liquids or gases, including but not
limited to substances defined as “hazardous wastes,” “hazardous materials,” “hazardous substances,”
“toxic substances,” “pollutants,” “contaminants,” “radioactive materials”, “toxic
pollutants”, or other similar designations in, or otherwise subject to regulation under, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), 42 U.S.C. § 9601 et seq.;
the Toxic Substance Control Act (“TSCA”), 15 U.S.C. § 2601 et seq.; the Hazardous Materials Transportation
Act, 49 U.S.C. § 1802; the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 9601, et
seq.; the Clean Water Act (“CWA”), 33 U.S.C. § 1251 et seq.; the Safe Drinking Water Act,
42 U.S.C. § 300f et seq.; the Clean Air Act (“CAA”), 42 U.S.C. § 7401 et seq.; any Regional
Water Quality Control Board; and in any permits, licenses, approvals, plans, rules, regulations or ordinances adopted, or other
criteria and guidelines promulgated pursuant to the preceding laws or other similar federal, state or local laws, regulations,
rules or ordinance now or hereafter in effect relating to environmental matters; and (ii) any other substances, constituents or
wastes subject to any applicable federal, state or local law, regulation or ordinance, including any environmental law, now or
hereafter in effect, including but not limited to (A) petroleum, (B) refined petroleum products, (C) waste
oil, (D) waste aviation or motor vehicle fuel and their byproducts, (E) asbestos, (F) lead in water, paint
or elsewhere, (G) radon, (H) Polychlorinated Biphenyls (PCB’s), (I) ureaformaldehyde, (J) volatile
organic compounds (VOC), (K) total petroleum hydrocarbons (TPH), (L) benzene derivative (BTEX), (M) petroleum
byproducts and (N) methane gas or any of its derivatives.

 

“Improvements”
- As defined in the Recitals hereof.

 

     

     

    

 

“Indemnified Parties”
- As defined in Section 3 hereof.

 

“Land”
- As defined in the Recitals hereof.

 

“Property”
- As defined in the Recitals hereof.

 

“Property
Conditions” - As defined in Section 3 hereof.

 

“Related Parties” –
Bluerock Real Estate, L.L.C., a Delaware limited liability company, and its successors and assigns.

 

“Residential
Rental Property” - Shall mean property used for the rental of apartments to the general public under leases providing
for residential use by any occupant of any apartment.

 

“Purchaser”
- As defined in the Preamble hereof. In the event more than one person and/or entity executes this Condominium Agreement as Purchaser,
each such person and/or entity which comprises Purchaser under this Condominium Agreement shall be jointly and severally liable
for all of the obligations, covenants, liabilities and indemnifications of the Purchaser under this Condominium Agreement.

 

“Seller”
- As defined in the Preamble hereof.

 

“Term”
- As defined in Section 7 herein.

 

“Units”
- Shall mean any portion of the Property created in connection with any Condominium Conversion.

 

Section 2.            No Condominium
Conversion.

 

(a)           During
the Term of this Condominium Agreement:

 

(i)           The
Property shall not be subject to any Condominium Conversion and no portion of the Property shall be converted to Units for sale
in connection with a Condominium Conversion, nor shall the title to any such Units be transferred to any party.

 

(ii)         No
part of the Property will at any time be owned or used as a cooperative housing corporation, community apartment property or stock
corporation.

 

     

     

    

 

Section 3.            Indemnification.
In the event any of the provisions of Section 2 hereof are breached, the then current owner of the Property (“Indemnitor”)
agrees to indemnify, defend and hold harmless the Seller, and each of its members, partners, officers, directors, trustees, affiliates
(including, but not limited to, Bluerock Real Estate, L.L.C. and Bluerock Residential Growth REIT, Inc.), parents, subsidiaries,
shareholders, managers, beneficiaries, employees and agents (collectively, the “Indemnified Parties”) from any
and all demands, claims, including claims for personal injury, property damage or death, legal or administrative proceedings, losses,
liabilities, damages, penalties, fines, liens, judgments, costs or expenses whatsoever, whether in tort, contract or otherwise
(including without limitation, court costs and reasonable attorneys’ fees and disbursements) arising out of, or in any way
relating to: (a) claims made or brought by any party or parties who acquire or contract to acquire any Units in the Property (or
any cooperative housing corporation, community apartment property or stock corporation interests in the Property) following the
date hereof, their agents, employees and successors and assigns in connection with or related to (i) the physical condition of
the Property, including, without limitation, latent or patent defects, and claims relating to the existence of asbestos, any other
construction defects, claims relating to mold, all structural and seismic elements, all mechanical, electrical, plumbing, sewage,
heating, ventilating, air conditioning and other systems, the environmental condition of the Property and the presence of Hazardous
Materials or Hazardous Substances on, under or about the Property, and (ii) any law or regulation applicable to the Property, including,
without limitation, any environmental law and any other federal, state or local law (the matters described in (i) and (ii) hereof
collectively the “Property Conditions”); and (b) a breach of any of the covenants, terms and conditions of this
Condominium Agreement by Indemnitor. Indemnitor consents to the right of Indemnified Parties to approve and appoint defense counsel
and to participate in or assume the defense of any claim. Until any determination is made in any appropriate legal proceeding challenging
the obligation of Indemnitor herein, Indemnitor’s obligations under all the terms and provisions of this Section shall remain
in full force and effect. Indemnitor acknowledges that it is a sophisticated and experienced purchaser of real estate and has reviewed
with its counsel the full meaning and affect of the foregoing indemnity.

 

Section 4.           Consideration.
In consideration of the Seller’s acceptance of the purchase price for the Property from Purchaser, Purchaser has entered
into this Condominium Agreement and has agreed to restrict the uses to which the Property can be put on the terms and conditions
set forth herein.

 

Section 5.           Intentionally
deleted.

 

Section 6.           Intentionally
deleted.

 

Section 7.           Term.
This Condominium Agreement shall become effective upon its execution and delivery and shall remain in full force and effect until
the date which is ten (10) years from the date hereof (the “Term”). Upon the expiration of the Term, the parties
hereto agree to execute, deliver and record appropriate instruments of release and discharge of the terms hereof; provided, however,
that the execution and delivery of such instruments shall not be necessary or a prerequisite to the termination of this Condominium
Agreement in accordance with its terms.

 

Section 8.           Covenants
to Run With the Land. The Purchaser and Seller hereby subject the Property to the covenants, reservations and restrictions
set forth in this Condominium Agreement. The Purchaser and the Seller hereby declare their express intent that the covenants, reservations
and restrictions set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Purchaser’s
successors in title to the Property; provided, however, that on the termination of this Condominium Agreement said covenants, reservations
and restrictions shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property
or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations
and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other
instrument.

 

     

     

    

 

Section 9.           Burden
and Benefit. The Purchaser and Seller hereby declare their understanding and intent that the burden of the covenants set forth
herein touch and concern the Land in that the Purchaser’s legal interest in the Property is rendered less valuable thereby.
The Purchaser and Seller hereby further declare their understanding and intent that the benefit of such covenants touch and concern
the Land by enhancing and increasing the enjoyment and use of the Property by persons entitled to rent the apartments contained
therein.

 

Section 10.         Uniformity:
Common Plan. The covenants, reservations and restrictions hereof shall apply uniformly to the entire Property in order to establish
and carry out a common plan for the use of the Property.

 

Section 11.         Enforcement.
If the Purchaser or any of its successors or assigns defaults in the performance or observance of any covenant, agreement or obligation
of the Purchaser and its successors or assigns set forth in this Condominium Agreement, then the Seller or any of the Indemnified
Parties may declare an “Event of Default” to have occurred hereunder, and, at any of said Parties option, it
may take any one or more of the following steps: (a) by mandamus or other suit, action or proceeding at law or in equity, to require
the Purchaser and its successors and assigns to perform its obligations and covenants hereunder, or enjoin any acts or things which
may be unlawful or in violation of the rights of the Seller hereunder; or (b) take such other action at law or in equity as may
appear reasonably necessary to enforce the obligations, covenants and agreements of the Purchaser hereunder. All rights and remedies
as set forth herein shall be cumulative and non-exclusive to the extent permitted by law.

 

Section 12.         Recording
and Filing. The Seller shall cause this Condominium Agreement and all amendments and supplements hereto and thereto, to be
recorded and filed in the real property records of the County. The Seller shall pay all fees and charges incurred in connection
with any such recording.

 

Section 13.         Attorneys’
Fees. In the event that a party to this Condominium Agreement brings an action against any other party to this Condominium
Agreement by reason of the breach of any condition or covenant, representation or warranty in this Condominium Agreement, or otherwise
arising out of this Condominium Agreement, the prevailing party in such action shall be entitled to recover from the other reasonable
attorneys’ fees to be fixed by the court which shall render a judgment, as well as the costs of suit.

 

Section 14.         Governing
Law. This Condominium Agreement shall be governed by the laws of the State of Florida.

 

     

     

    

 

Section 15.         Amendments.
This Condominium Agreement shall be amended only with the express written consent of the Seller, or by any one (1) of the Related
Parties for or on behalf of the Seller, by a written instrument executed by the parties hereto or their successors in title, and
duly recorded in the real property records of the County.

 

Section 16.         Execution
of Termination. Any one (1) of the Related Parties is authorized and empowered to execute a termination of this Condominium
Agreement with the full force and effect as though it had been executed by the Seller.

 

Section 17.         Notice.
Any notice required to be given hereunder shall be made in writing and shall be given by personal delivery, overnight courier,
or certified or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other
addresses as may be specified in writing by the parties hereto:

 

TO SELLER:

 

c/o Bluerock Real Estate, L.L.C.

712 Fifth Avenue

9th Floor

New York, NY 10019

Attention: Ryan MacDonald

 

With a copy (which shall not constitute notice) to:

 

c/o Bluerock Real Estate, L.L.C.

712 Fifth Avenue

9th Floor

New York, NY 10019

Attention: Michael L. Konig

 

And to:

 

Nelson Mullins Riley & Scarborough LLP

Atlantic Station

201 17th Street NW, Suite 1700

Atlanta, GA 30363

Attention: Eric R. Wilensky, Esq.

 

TO PURCHASER:

 

c/o Carter-Haston Holdings, L.L.C.

1230 Peachtree St. NE, Suite 1909

Atlanta, GA 30309

Attention: James A. Shanks

 

     

     

    

 

With a copy (which shall not constitute
notice) to:

 

KRE Topaz Portfolio Investor LLC

c/o Kohlberg Kravis Roberts & Co.

600 Travis Street, Suite 7200

Houston, TX 77002

Attention: Paul S. Wasserman

 

And to:

 

KRE Topaz Portfolio Investor LLC

c/o Kohlberg Kravis Roberts & Co.

9 West 57th Street, Suite 4200

New York, NY 10019

Attention: Michael Friedland

 

And to:

 

Waller Lansden Dortch & Davis, LLP

511 Union Street, Suite 2700

Nashville, TN 37219

Attention: Philip F. Head, Esq.

 

Notice shall be deemed given three (3)
Business Days after the date of mailing, by certified mail, postage prepaid, return receipt requested, or, if personally delivered
or delivered by overnight courier, when received.

 

Section 18.         Severability.
If any provision of this Condominium Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining portions hereof shall not in any way be affected or impaired thereby.

 

Section 19.         Multiple
Counterparts. This Condominium Agreement may be simultaneously executed in multiple counterparts, all of which shall constitute
one and the same instrument, and each of which shall be deemed to be an original.

 

Section 20.         Mortgagee’s
Rights.

 

(a)           Definitions.
For purposes of this Section 20, the following terms shall have the following meanings:

 

“First Mortgage”
shall mean any bona-fide unpaid and outstanding mortgage or deed of trust on the Property or other instrument creating a security
interest against the Property having priority of record over all other recorded liens except those governmental liens and statutory
liens which are made superior by statute.

 

“First Mortgagee”
shall mean the holder of any First Mortgage.

 

     

     

    

 

(b)           Transfer
of Property to or from First Mortgagee. Notwithstanding anything contained herein to the contrary, in the event of a sale,
transfer, or other disposition of the Property including, but not limited to, a conveyance pursuant to a deed-in-lieu of foreclosure
or the sale of the Property at a foreclosure to (i) a First Mortgagee, (ii) an affiliate of a First Mortgagee, (iii) a purchaser
at a foreclosure sale, and (iv) any transferee of a First Mortgagee or affiliate of a First Mortgagee (collectively a “Foreclosure
Purchaser”), shall have no obligation to indemnify, defend and hold harmless Seller or the Related Parties with respect
to any Condominium Conversion occurring (x) prior to the date such Foreclosure Purchaser acquires title to the Property (regardless
of whether such Foreclosure Purchaser consented to such Condominium Conversion prior to its acquisition of the Property), or
(y) following the conveyance of the Property by such Foreclosure Purchaser to a third party purchaser, provided that such
Foreclosure Purchaser did not commit a Condominium Conversion during such Foreclosure Purchaser’s period of ownership of
the Property. In the event that Foreclosure Purchaser did commit a Condominium Conversion during such Foreclosure Purchaser’s
period of ownership of the Property, then Foreclosure Purchaser shall have the obligation to indemnify, defend and hold harmless
Seller and the Related Parties with respect to any Condominium Conversion during such Foreclosure Purchaser’s period of ownership.
Any third-party transferee of a Foreclosure Purchaser shall have the obligation to indemnify, defend and hold harmless Seller and
the Related Parties with respect to any Condominium Conversion after such transferee’s acquisition of the Property. In the
event of litigation arising out of such indemnifications, covenants or conditions, the prevailing party shall be entitled to recover
its reasonable attorneys’ fees and costs of court from the non-prevailing party. Seller acknowledges that Foreclosure Purchaser’s
liability under this Condominium Agreement shall be limited to Foreclosure Purchaser’s interest in the Property.

 

(c)           No
Amendments. No amendment of this Condominium Agreement shall be effective without the written consent and approval of any First
Mortgagee, which shall not be unreasonably withheld, conditioned and/or delayed.

 

Section 21.         Joint
and Several Liability of Purchaser. In the event more than one person and/or entity executes this Condominium Agreement as
Purchaser, each such person and/or entity which comprises Purchaser under this Condominium Agreement shall be jointly and severally
liable for all of the obligations, covenants, liabilities and indemnifications of the Purchaser under this Condominium Agreement.

 

     

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed the Condominium Agreement as of the day and year first written above.

 

	 	SELLER:
	 	 
	 	BR WORLD GATEWAY, LLC, a Delaware limited
    liability company
	 	 
	 	By:	BRG World Gateway Manager, LLC, a Delaware limited
    liability company, its Manager
	 	 	 
	 	 	By:	 
	 	 	 	Name: 	 
	 	 	 	Title: 	 

  

	STATE OF     ________________	)
	 	) SS.
	COUNTY OF ________________	)

 

On _____________________,
20__, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ___________________, personally
known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the person(s), or the entity(ies) upon behalf of which the person(s) acted including,
______________________, a ___________________________, executed the within instrument.

 

	 	 
	 	 
	 	(This area for official notarial seal)

 

WITNESS my hand and official seal

 

Signature ___________________________________

 

     

     

    

  

	 	PURCHASER:
	 	 
	 	_______________________,
	 	a _________________________
	 	 
	 	By: 	                               
	 	Name:	
	 	Title: 	 

 

	STATE OF     ________________	)
	 	) SS.
	COUNTY OF ________________	)

 

On _____________________,
20__, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ___________________, personally
known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signature(s) on the instrument the person(s), or the entity(ies) upon behalf of which the person(s) acted including,
______________________, a ___________________________, executed the within instrument.

 

	 	 
	 	(This area for official notarial seal)

 

WITNESS my hand and official seal.

 

Signature ___________________________________

 

Exhibits to Condominium Agreement

 

Exhibit A – Legal Description of
Property

 

     

     

    

 

Exhibit D

 

FORM OF DEED

 

 

 

Return to:

 

Tax Identification No. _____________________

 

SPECIAL WARRANTY DEED

 

THIS SPECIAL WARRANTY
DEED (this “Deed”) is made as of this ____ day of __________________, 2019, by BR WORLD GATEWAY, LLC,
a Delaware limited liability company (“Grantor”), having an address at 712 Fifth Avenue, 9th Floor, New York,
NY 10019, to and in favor of _________________________, a _____________________
(“Grantee”), whose address is _______________________________ (the words “Grantor” and “Grantee”
to include their respective successors and assigns where the context requires or permits).

 

WITNESSETH:

 

That Grantor, for and
in consideration of the sum of Ten and No/100 Dollars ($10.00) and other valuable consideration, the receipt whereof is hereby
acknowledged, by these presents does hereby grant, bargain, sell, alien, remise, release and convey unto Grantee, that certain
real property located in Orange County, Florida, which is described in the attached Exhibit A (the “Property”).

 

TO HAVE AND TO HOLD
the Property, together with all tenements, improvements, hereditaments, easements, benefits, rights, privileges, and appurtenances
belonging to or benefiting the Property forever in FEE SIMPLE.

 

AND GRANTOR HEREBY
COVENANTS with Grantee that the Grantor is lawfully seized of the Property in fee simple; that Grantor has good right and lawful
authority to sell and convey the Property; and that Grantor hereby fully warrants the title to the Property and will defend the
same against the lawful claims of all persons claiming by, through or under Grantor but against no other, subject only to the matters
set forth on Exhibit B attached hereto (the “Permitted Exceptions”).

 

AND GRANTOR HEREBY
WARRANTS that at the time of this conveyance the Property is not the Grantor’s homestead within the meaning set forth
in the Constitution of the State of Florida, nor is it contiguous to or a part of homestead property.

 

[SIGNATURE APPEARS ON
FOLLOWING PAGE]

 

     

     

    

 

[SIGNATURE PAGE TO
SPECIAL WARRANTY DEED]

 

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

 

	WITNESSES:	GRANTOR:

 

	 	 	 	BR WORLD GATEWAY, LLC, a Delaware limited liability company
	Print Name:	 	 	 	 	 
	 	 	 	By:	BRG World Gateway Manager, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 
	Print Name:	 	 	 	 	 
	 	 	 	 	By:	 
	 	 	 	 	 	Name: 	 
	 	 	 	 	 	Title: 	 

 

	STATE OF     ________________	)
	 	) SS:
	COUNTY OF ________________	)

 

I HEREBY CERTIFY
that the foregoing instrument was acknowledged and executed before this _____ day of ________________________, 2019 by _______________________,
as _______________________ of BRG World Gateway Manager, LLC, a Delaware limited liability company, Manager of BR World Gateway,
LLC, a Delaware limited liability company. He is ________ personally known to me or ___________ has produced ______________________________
as identification.

 

	 	 
	 	Notary Public, State of
	 	Printed Name:
	 	My commission expires:

 

[Notary Seal]

 

Exhibits to Special Warranty Deed

 

	Exhibit A — 	Legal Description of Property 
	 	 
	Exhibit B —  	Permitted Exceptions

 

     

     

    

 

Exhibit E

 

FORM OF SELLER’S TITLE AFFIDAVIT

 

AFFIDAVIT-# 577036

 

STATE OF ___________

COUNTY OF ____________

 

Before me, the undersigned authority, personally appeared __________
(“Affiant”), who being by me duly sworn, on oath, deposes and says:

 

		1.	That Affiant is a ___________ of _____________________
(“Owner”), in such capacity is duly authorized to execute this affidavit and all closing documents related to this
transaction, and has personal knowledge of all matters contained in this Affidavit.

 

		2.	That Owner is the fee simple owner of the property
described in First American Title Insurance Commitment No. ________ (the “Commitment”), and as shown on Exhibit “A”
attached hereto (the “Property”).

 

		3.	That, except as indicated on the Commitment, there
are no construction, materialmen or labors’ liens under the Florida Statutes filed against the Property; there have been
no repairs, improvements made or other work done or labor, materials or services bestowed upon the Property or any part thereof
within 90 days preceding the date of this Affidavit authorized by Owner for which all or any part of the cost of the same remains
unpaid; there are no outstanding contracts, either oral or written, for the furnishing of any labor, materials or services in
connection with the improvement of the Property or any part thereof entered into by Owner; and to the best knowledge of Affiant,
no person, firm or corporation is entitled to a lien under Chapter 713 of the Florida Statutes with respect to the Property.

 

		4.	That the Property is free of all mortgages, security
agreements, liens or other encumbrances of any nature whatsoever made by, through or under Owner except as described in Schedule
B of the Commitment.

 

		5.	That there are no unpaid delinquent or otherwise outstanding
taxes, special assessments or other liens or charges, or any public or private assessments, which are not shown as existing liens
by the public records.

 

		6.	That no one now occupies or is in possession of the
Property or any part thereof as tenant, lessee, or otherwise, except the following: Residential tenants, as tenants only with
no purchase option or right of first refusal, as identified on the rent roll attached hereto as Exhibit “B.”

 

     

     

    

 

		7.	That, to the knowledge of Owner, no actions in bankruptcy
have been filed by or against the Owner in any federal court or any other court of competent jurisdiction.

 

		8.	That in connection with any covenants, conditions
or restrictions (“CCRs”) on the Property, the undersigned is not aware of any current violations of those CCRs and
has not received any notice from a third party claiming any current violations of those CCRs and that any assessments due a third
party under the CCRs that is owed by Owner have been paid in full.

 

		9.	That, to the knowledge of Owner, there are no matters
pending against Owner that could give rise to a lien that would attach to the Property between the most recent effective date
of the Commitment and the recording of the interest to be insured, and that Owner has not executed and will not execute any instrument
that would adversely affect the title to the Property or interest to be insured.

 

		10.	That this affidavit is given for the purpose of inducing
First American Title Insurance Company and/or its agent to issue its policy or policies of title insurance in favor of __________________________________
and _____________________ which may provide coverage as to the matters listed above.  Owner acknowledges that it has read
the foregoing and fully understands the legal aspects of any misrepresentation and/or untrue statements made herein and agrees
to indemnify and hold harmless FIRST AMERICAN TITLE INSURANCE COMPANY (the “Company”) against liability occasioned
by reason of reliance upon the statements made herein.

 

		11.	Each person in his or her capacity as an officer,
manager or authorized signatory of the entity signing below, on behalf of Owner, agrees that Owner shall indemnify the Company
and agrees that Owner shall save harmless the Company against any loss or expense, including reasonable attorneys’ fees
and costs, sustained as a result of any of the foregoing statements not being true and accurate.

 

[NO FURTHER TEXT ON THIS PAGE]

 

     

     

    

 

	 	 
	 	 
	By:	 	 
	Name: 		 	 
	Title: 		 	 

 

Sworn and subscribed before me this _______ day of
__________ 2019.

 

_________________________

NOTARY PUBLIC

 

[AFFIX NOTARY STAMP OR SEAL]

 

My commission expires: ______________________________

 

Exhibits to Affidavit

 

Exhibit A – Legal Description of Property

Exhibit B – Rent Roll

 

     

     

    

 

Exhibit F

 

FORM OF SELLER’S CLOSING CERTIFICATE

 

 

 

SELLER’S CLOSING CERTIFICATE

 

THIS SELLER’S
CLOSING CERTIFICATE is made as of ______________, 2019 by BR WORLD GATEWAY, LLC, a Delaware limited liability company (“Seller”),
in favor of _______________________, a __________ (“Purchaser”).

 

Seller hereby certifies
to Purchaser that the representations and warranties of Seller set forth in Section 3.1 of that certain Purchase and Sale Agreement
between Seller and _________________________ [if applicable: as amended/assigned] (the “Agreement”) dated
as of June _____, 2019, are true and correct in all material respects as of the date hereof, except as to:

 

		(a)	The Rent Roll for the Property attached hereto as
Exhibit A replaces the Rent Roll for the Property attached to the Agreement as Schedule 3.1(k)[; and]

 

		(b)	[If applicable: The items disclosed on Exhibit
B attached hereto replace Seller’s disclosures attached to the Agreement as Schedule(s) ___________ ].

 

The representations
and warranties of Seller set forth in Section 3.1 of the Agreement, and as updated by this Seller’s Closing Certificate,
will survive only for a period of one hundred eighty (180) days from the date hereof.

 

This Seller’s
Closing Certificate is delivered pursuant to Section 6.2(i) of the Agreement, and Seller’s liability hereunder is subject
to Article 11 of the Agreement, including the Cap Limitation as defined therein.

 

     

     

    

  

	 	SELLER:
	 	 
	 	BR WORLD GATEWAY, LLC, a Delaware limited liability company
	 	 	 	 
	 	By:	BRG World Gateway Manager, LLC, a Delaware limited liability company, its Manager
	 	 	 	 
	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

Exhibits to Seller’s Closing Certificate

 

	Exhibit A —	Updated Rent Roll
	 	 
	Exhibit B —	Additional Disclosure Items [if applicable]

 

     

     

    

 

Exhibit G-1

 

FORM OF NEW PROPERTY MANAGEMENT AGREEMENT

 

Please see attached.

 

     

     

    

 

Exhibit G-2

 

NEW OPERATING BUDGET

 

Please see attached.Exhibit
10.4

 

FIRST AMENDMENT
TO PURCHASE AND SALE AGREEMENT

 

THIS FIRST AMENDMENT
TO PURCHASE AND SALE AGREEMENT (this “Amendment”) is made as of the 17th day of June, 2019 (the
“Effective Date”), by and between BR WORLD GATEWAY, LLC, a Delaware limited liability company (“Seller”),
and KRE TOPAZ PORTFOLIO INVESTOR LLC, a Delaware limited liability company (“Purchaser”).

 

RECITALS

 

A.           Seller
and Purchaser are parties to that certain Purchase and Sale Agreement dated as of June 17, 2019 (the “Agreement”)
for the purchase and sale of the property located in Orlando, Orange County, Florida, commonly known as ARIUM Palms at World Gateway
Apartments, and further described in the Agreement.

 

B.           Seller
and Purchaser desire to amend the terms of the Agreement pursuant to the terms and conditions of this Amendment.

 

NOW THEREFORE,
in consideration of the mutual promises set forth herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

AGREEMENT

 

1.          Incorporation
of Recitals; Definitions. The foregoing recitals are incorporated herein. Capitalized terms not otherwise defined herein shall
have the meaning given such terms in the Agreement.

 

2.          Sorrel
Purchaser. All references in the Agreement to Purchaser as related to the Sorrel Phillips Creek Ranch Purchase Agreement shall
be revised to mean “Carter-Haston Holdings, L.L.C., a Delaware limited liability company.” Accordingly, the defined
term “Sorrel Phillips Creek Ranch Purchase Agreement” shall mean that certain Purchase and Sale Agreement dated
as of even date herewith, by and between Sorrel Phillips Creek Ranch Seller, as seller, and Carter-Haston Holdings, L.L.C., a Delaware
limited liability company, as purchaser, with respect to the purchase and sale of the Sorrel Phillips Creek Ranch Property. Further,
the reference to Purchaser in Section 14.26(a)(iii) of the Agreement is revised to mean Carter-Haston Holdings, L.L.C., a Delaware
limited liability company.

 

3.          Seller
Repair Covenant. Section 3.3 of the Agreement is hereby revised to insert the following new Section 3.3(h):

 

     

     

    

 

“(h)          Repair
Covenant. Seller agrees to use commercially reasonable efforts to cause the following work to be substantially completed and
paid in full by Closing: (i) repair the metal entrance gate at the Property that has been damaged by vehicle impact (with an estimated
cost of $3,500), and (ii) replace the pond fountain pump at the Property that is currently not working on the Effective Date (with
an estimated cost of $6,000) (collectively, the “Repair Items”). To the extent that the Repair Items are not
substantially completed and paid in full by Closing, then Seller shall provide Purchaser with a credit at Closing for the amount
of the unpaid balance of the foregoing, with such credit determined by Seller in its commercially reasonable discretion. For the
avoidance of doubt, failure of Seller to complete the Repair Items prior to Closing shall in no event be a default of Seller under
the Agreement and Purchaser’s sole remedy for the same shall be a credit from Seller at Closing as provided in this Section
3.3(h).

 

4.          Ratification
and No Further Amendment. As modified by this Amendment, the Agreement is fully ratified, adopted and approved by the parties
hereto effective as of the date hereof. Except as expressly set forth herein, the Agreement remains unmodified and in full force
and effect.

 

5.          Miscellaneous.
This Amendment may be executed in multiple counterparts each of which shall be deemed an original but together shall constitute
one and the same instrument.

 

6.          Signatures.
Signatures to this Amendment transmitted by telecopy or electronic transmission (for example, through use of a Portable Document
Format or “PDF” file) shall be valid and effective to bind the party so signing.

 

[signature page next page]

 

     

     

    

 

IN WITNESS WHEREOF,
Seller and Purchaser have caused this Amendment to be duly executed and delivered, effective as of the Effective Date.

 

	 	SELLER:
	 	 
	 	BR WORLD GATEWAY, LLC, a Delaware limited liability company
	 	 	 
	 	By:	BRG World Gateway Manager, LLC, a Delaware limited liability company, its Manager
	 	 	 	 
	 	 	By:	/s/ Michael Konig
	 	 	Name: Michael Konig
	 	 	Title: Authorized Signatory 
	 	 	 	 
	 	PURCHASER:
	 	 
	 	KRE TOPAZ PORTFOLIO INVESTOR LLC, 
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	/s/ Michael Friedland
	 	Name:	Michael Friedland 
	 	Title:	VP

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