Document:

Exhibit 10.2

 

SINGLE FAMILY HOMES

 

REAL ESTATE PURCHASE AND SALE AGREEMENT

 

by and between

 

Gregory Griffin

 

as Seller

 

and

 

REVEN HOUSING TENNESSEE, LLC,

a Delaware limited liability company,

as Buyer

 

September 9, 2014

 

    	 

    	 

    

  

THIS SINGLE FAMILY
HOMES PURCHASE AND SALE AGREEMENT (this “Agreement”) is made and entered into as of September 9, 2014
(“Effective Date”), by and between Gregory Griffin, a sole propreitor (“Seller”) and
REVEN HOUSING TENNESSEE, LLC, a Delaware limited liability company (“Buyer”).

 

BASIC TERMS

 

The following terms, as used in this Agreement,
will have the meanings assigned to such terms in this Basic Terms section of the Agreement, subject to any adjustments set forth
elsewhere in this Agreement.

 

Purchase
Price: One Million Eight Hundred Twenty Five Thousand and 00/100 Dollars ($1,825,000.00) subject to adjustment in accordance
with the provisions of this Agreement.

 

Deposit: Eighteen
Thousand Two Hundred Fifty and 00/100 Dollars ($18,250.00).

 

Closing
Date: Thirty days after expiration of the Approval Period. 

 

Due Diligence Period:
Subject to the provisions of Section 7 below, the period commencing on the Effective Date and ending on the date that is
30 days after Buyer receives all Property Information, to be delivered to Buyer pursuant to Section 6(a)(3) and Section 7(a),
during which period Buyer will be provided the opportunity to review all aspects of the Property. 

 

Escrow Holder:
Fidelity National Title Insurance Company.

 

Title Company:
Fidelity National Title Insurance Company.

 

Seller’s Broker:
None.

 

Buyer’s Broker:
None.

 

PRELIMINARY
STATEMENTS

 

A.Seller is the
owner of the Property (as defined herein); and

 

B.Seller desires
to sell, and Buyer desires to buy, the Property, at the price and on the terms and conditions hereafter set forth.

 

In consideration of
the recitals, mutual covenants, and agreements set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are mutually acknowledged, Seller and Buyer hereby agree as follows:

 

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1.                 
Premises. The real estate which is the subject of this Agreement consists of twenty two (22) single family homes,
in the State of Tennessee, which are identified and generally described on Exhibit A attached hereto, together with all
of the improvements and structures located thereon (“Improvements”), any heating and ventilating systems
and other fixtures located therein or thereon, and all rights, interests, benefits, privileges, easements and appurtenances to
the land and the Improvements, if any (collectively, the “Premises”).

 

2.                 
Personal Property and Leases.

 

(a)               
The “Personal Property” referred to herein shall consist of all right, title, and interest
of Seller, if any, in all tangible (including all advertising materials, plans and specifications) and intangible personal property,
including any equipment, appliances, or furnishings that remain in the Premises at the Closing, and any and all existing licenses
and permits held by Seller and not constituting part of the real estate, located on and used in connection with the Premises.

 

(b)              
The “Leases” referred to herein shall consist of the leases, occupancy and rental agreements
between the Seller, as landlord and tenants of the single family homes that comprise the Premises that are in effect as of the
date of the Closing (defined below), as well as and service contracts relating to the maintenance and repair of such homes.

 

3.                 
Sale/Conveyance and Assignment. Seller agrees to sell, convey and assign to Buyer, and Buyer agrees to buy and assume
from Seller, at the price and upon the other terms and conditions hereafter set forth (a) the Premises, (b) the Personal Property,
(c) the Improvements, and (d) the Leases (a-d collectively, the “Property”).

 

4.                 
Transfer of Title.

 

(a)               
Title to the Property shall be conveyed to Buyer by special warranty deed (the “Deed”) executed
by Seller, in the form attached hereto as Exhibit C.

 

(b)              
The Personal Property shall be conveyed to Buyer by a bill of sale (the “Bill of Sale”) executed
by Seller, in the form attached hereto as Exhibit D.

 

(c)               
The Leases shall be assigned by Seller and assumed by Buyer by an Assignment Leases and Contracts (the “Assignment
of Leases and Contracts”), in the form attached hereto as Exhibit E.

 

5.                 
Purchase Price; Deposit(a)               
.

 

(a)               
Delivery of Purchase Price. The purchase price for the Property shall be the price identified in the Basic Terms
(the “Purchase Price”), which shall be subject to reduction in accordance with Section 7(d) and
payable by Buyer to Seller as follows:

 

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(1)              
Within five (5) business days after the execution of this Agreement, Buyer shall deposit into an escrow account (the “Escrow”)
established with Escrow Holder (as identified in the Basic Terms), which will serve as escrow holder for this transaction a deposit
in the amount of the Deposit (as identified in the Basic Terms above). If Buyer notifies Seller that it elects to proceed to purchase
the Property in accordance with the provisions of Section 7, then the Deposit (as defined in the Basic Terms) will become
non-refundable to Buyer, except in the event of a default or breach of this Agreement by Seller. The Deposit shall at all times
prior to Closing be invested in United States treasury obligations or such other interest bearing accounts or securities as are
approved by Buyer in writing; all interest earned on the Deposit will be administered, paid or credited (as the case may be) in
the same manner as the Deposit and, when credited to the escrow account shall constitute additional Deposit. At the closing of
the transactions contemplated by this Agreement (the “Closing”), Buyer shall receive a credit against
the Purchase Price for the Deposit.

 

(2)              
The Purchase Price, less a credit for the Deposit, and plus or minus prorations and adjustments as set forth in Section
17 hereof, shall be paid by Buyer to Seller by wire transfer of immediately available federal funds on the Closing Date.

 

(b)              
Property Valuation. Buyer may elect to retain an independent, third-party valuation consultant to prepare a valuation
report (“Valuation Report”) for each of the properties that comprise the Property. If the sum of the
values of the properties that comprise the Property (“Total Valuation”) is less than the Purchase Price,
then at Closing the Purchase Price will be reduced by the amount that the Purchase Price exceeds the Total Valuation; provided
that Buyer will have no right to a Purchase Price reduction in excess of ten percent (10%) of the original Purchase Price without
Seller’s written agreement. If the Purchase Price exceeds the Total Valuation by more than 10% of the Purchase Price, and
Seller does not agree to reduce the Purchase Price to the Total Valuation, then Buyer may, upon written notice to Seller at least
two business days before the then-scheduled Closing Date, elect to (i) close the transaction as contemplated with a 10%
reduction of the Purchase Price or (ii) terminate this Agreement. If Buyer terminates this Agreement in accordance with
this Section 5(b), then this Agreement will have no further force or effect, the parties will have no further obligations
to each other (except for any indemnities or other provisions that expressly survive termination of this Agreement) and Escrow
Holder shall refund the Deposit to Buyer.

 

(c)               
Notwithstanding Section 5(b) above and Section 7(d) below, Buyer may, in lieu of adjusting the Purchase Price
as a result of necessary repairs and replacements or a Total Valuation that is less than the Purchase Price in accordance with
those provisions, elect to exclude specified properties from the properties identified on Exhibit A. If, as a result of
its due diligence investigations, Buyer elects to exclude one or more properties from the Property being acquired in accordance
with this Agreement, then at least two (2) business days before the Closing Date, Buyer will notify Seller that certain specified
properties (“Excluded Properties”) are to be excluded from the sale contemplated in this Agreement. Following
Buyer’s notification to Seller and identification of the Excluded Properties, (i) the description of the properties that
comprise the Property, as identified on Exhibit A, will be deemed modified to exclude the Excluded Properties; and (ii)
the Purchase Price will be reduced by the product of the number of homes that comprise the Excluded Properties and the value assigned
to each home (the “Assigned Home Value”). Once Buyer identifies to Seller the Excluded Properties, those
properties so identified will no longer be the subject of this Agreement and Seller will be free to sell them to another party
or take any action that Seller elects with respect to the Excluded Properties.

 

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6.                 
Representations, Warranties and Covenants.

 

(a)               
Seller’s Representations and Warranties. As a material inducement to Buyer to execute this Agreement and consummate
this transaction, Seller represents and warrants to Buyer as follows:

 

(1)              
Organization and Authority. Seller has been duly organized and is validly existing as a Sole Proprietor. Seller has
the full right and authority and has obtained any and all consents required therefor to enter into this Agreement, consummate or
cause to be consummated the sale and make or cause to be made transfers and assignments contemplated herein. The persons signing
this Agreement on behalf of Seller are authorized to do so. This Agreement and all of the documents to be delivered by Seller at
the Closing have been authorized and properly executed and will constitute the valid and binding obligations of Seller, enforceable
against Seller in accordance with their terms.

 

(2)              
Conflicts. There is no agreement to which Seller is a party or, to Seller’s Knowledge, binding on Seller or
the Property, that is in conflict with this Agreement or that would limit or restrict the timely performance by Seller of its obligations
pursuant to this Agreement.

 

(3)              
Documents and Records. To Seller’s Knowledge, Seller has provided (or upon the execution hereof will provide)
Buyer with, or has made available to Buyer, true, correct and complete copies of the items scheduled in Schedule 6(a)(3)
attached hereto (all of the foregoing collectively the “Property Information”). The Property Information
consists of all documents relating to the Property in Seller’s possession or control.

 

(4)              
Litigation. There is no action, suit or proceeding pending or to Seller’s knowledge threatened which (i) if
adversely determined, would not be covered by insurance (subject to the payment of a customary insurance deductible) or adversely
affect the Property, or (ii) which challenges or impairs Seller’s ability to execute, deliver or perform this Agreement or
consummate the transaction contemplated hereby.

 

(5)              
Leases. Schedule 6(a)(5) sets forth a list of the leases and all contracts (including all service, maintenance,
and warranty contracts) that apply to the properties that comprise the Property, which, to Seller’s Knowledge, is true and
correct and complete list of such leases and contracts as of the date of such schedule. To Seller’s Knowledge, except as
scheduled in Schedule 6(a)(5), neither Seller nor any other party is in default with respect to any of its obligations
or liabilities pertaining to the Leases. To Seller’s Knowledge, other than the Leases and any other matters disclosed in
the Title Report, there are no leases, licenses or other occupancy agreements to which Seller is a party or is bound affecting
any portion of the Property as of the date hereof, which will be in force on the Closing Date. Seller has delivered or made available
at the Property, true and correct copies of the Leases to Buyer. No lessee under any Lease has any right of first refusal or option
to purchase the property that is the subject of their Lease. With respect to any property identified on Exhibit A, if any
Lease expires and is extended or renewed, or if Seller elects to sign a new Lease, during the period this Agreement is in effect,
then such new Lease must be submitted to Buyer for review and approval, may not have a term shorter than one year, and may not
include any free rent period or cancellation right on the part of the tenant, unless such terms are approved by Buyer in writing.

 

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(6)              
Contracts. Exhibit B sets forth all contracts presently outstanding with respect to the Property. To Seller’s
Knowledge, neither Seller nor any other party is in default with respect to any of its obligations or liabilities pertaining to
any contracts that will survive the Close of Escrow.

 

(7)              
Notice of Violations. Seller has received no written notice that either the Property or the use thereof violates
any laws, rules and regulations of any federal, state, city or county government or any agency, body, or subdivision thereof having
any jurisdiction over the Property that have not been resolved to the satisfaction of the issuer of the notice.

 

(8)              
Withholding Obligation. Seller is not a “foreign person” within the meaning of Section 1445 of the
Internal Revenue Code of 1986, as amended.

 

(9)              
Condemnation. Except for any condemnation proceedings which Seller has not yet been served with process, there are
no pending or, to Seller’s Knowledge, threatened condemnation or similar proceedings affecting the Property or any individual
property that is a part thereof.

 

(10)          
Employees.Seller has no employees at the Property.

 

(11)          
No Bankruptcy Proceedings. 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, or (iv)
suffered the attachment or other judicial seizure of all or substantially all of Seller’s assets.

 

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(12)          
Unrecorded Documents. Other than as disclosed in the Property Information, the Title Commitment, or any other documents
delivered to Buyer, Seller has not entered into any unrecorded contracts, leases, easements or other agreements with respect to
the Property that would be binding on Buyer or the Property following the Closing. Seller has no knowledge of any claim of any
third party affecting the use, title, occupancy or development of the Property that has not been disclosed to Buyer. Seller has
not granted any right of first refusal, option or other right to acquire all or any part of the Property.

 

For purposes of this
Section 6(a), the term “Seller’s Knowledge” means the actual knowledge of Gregory Griffin,
the person who Seller represents to be the most knowledgeable about the Property.

 

(b)              
Buyer’s Representations and Warranties. As a material inducement to Seller to execute this Agreement and consummate
this transaction, Buyer represents and warrants to Seller that Buyer has been duly organized and is validly existing as a Delaware
limited liability company. Buyer has the full right and authority and has obtained any and all consents required therefore to enter
into this Agreement, consummate or cause to be consummated the purchase, and make or cause to be made the deliveries and undertakings
contemplated herein or hereby. The persons signing this Agreement on behalf of Buyer are authorized to do so. This Agreement and
all of the documents to be delivered by Buyer at the Closing have been authorized and properly executed and will constitute the
valid and binding obligations of Buyer, enforceable against Buyer in accordance with their terms.

 

(c)               
Covenants of Seller. Seller covenants and agrees that during the period from the date of this Agreement through and
including the Closing Date:

 

(1)              
Seller will timely pay and perform its obligations under the Leases and any contracts to be assumed by Buyer pursuant hereto.

 

(2)              
 All tenant repair requests, including move-in punch-list items have been fixed properly or will be fixed properly and paid
for before the close of escrow.

 

Seller Representation
Regarding Tenants. Seller hereby represents and warrants that each tenant is occupying its respective home and is current in the
payment of rent, and no default currently exists and no condition exists, which, with the passage of time may become a default
under any of the Leases.

 

(3)              
Following the expiration of the Due Diligence Period, Seller will not enter into any contract (other than new Leases) that
will be an obligation affecting the Property subsequent to the Closing Date except for contracts entered into in the ordinary course
of business that are terminable without cause and without payment of a penalty on not more than 30-days’ notice.

 

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(4)              
Seller will not remove any Personal Property from the Property except as may be required for necessary repair or replacement,
and in the event of such replacement, the replacement shall be of materially equal or better quality and quantity as existed as
of the time of its removal.

 

(5)              
Seller will continue to operate and maintain the Property in accordance with past practices and will not make any material
alterations or changes thereto;

 

(6)              
Seller will maintain casualty and liability insurance of a level and type consistent with the insurance maintained by Seller
prior to the execution of this Agreement with respect to the Property;

 

(7)              
Seller will not do anything, or authorize anything to be done, that would adversely affect the condition of title as shown
on the Title Commitment.

 

(8)              
Seller agrees to terminate by written notice to the other parties thereto, effective as of Closing, any service contracts
that Buyer, pursuant to written notice to Seller prior to the expiration of the Due Diligence Period, requests Seller to terminate.
Seller shall deliver to Buyer copies of all notices of termination given by Seller pursuant to this subsection.

 

(9)              
Seller shall repair all homes that become vacant at least five (5) days prior to the Closing to “rent-ready”
condition in accordance with Seller’s customary practice and procedure for the Property. Buyer shall receive a $3,500 credit
against the Purchase Price with respect to any unit that is vacant and not in “rent ready” condition on the Closing
Date. At Buyer’s request, Seller shall inspect each of the vacant units prior to the Closing to determine if any of such
units cannot be restored to “rent ready” condition at a cost of $3,500 or less, and Buyer and Seller hereby agree to
make such adjustments to the $3,500 per unit credit as Buyer and Seller agree, acting reasonably, are necessary in order to pay
for the cost of restoring the vacant units to “rent ready” condition. Upon request, Seller shall keep Buyer reasonably
informed as to the status of leasing prior to the Closing Date and shall deliver to Buyer copies of all new Leases.

 

(d)              
Representation and Warranties Prior to Closing. The continued validity in all respects of the foregoing representations
and warranties shall be a condition precedent to the obligation of the party to whom the representation and warranty is given to
close this transaction. If any of Seller’s representations and warranties are not true and correct at any time on or before
the Closing even if true and correct as of the date of this Agreement or whether any change in facts or circumstances has made
the applicable representation and warranty no longer true and correct and regardless as to whether Buyer becomes aware of such
fact through Seller’s notification or otherwise, then Buyer may, at Buyer’s option, exercised by written notice to
Seller (and as its sole and exclusive remedy), either (i) proceed with this transaction, accepting the applicable representation
and warranty as being modified by such subsequent matters or knowledge and waiving any right relating thereto, if any, or (ii)
terminate this Agreement and declare this Agreement of no further force and effect and in which event Escrow Holder shall, without
further instruction, return the Deposit to Buyer and Seller shall have no further liability hereunder by reason thereof; provided,
that if the breach of any representation or warranty of Seller hereunder results from the willful and intentional act of Seller,
Buyer will have the rights and remedies available to Buyer under Section 18(b) of this Agreement upon a default by
Seller of its obligations under this Agreement.

 

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7.                 
Due Diligence Period.

 

(a)               
Buyer will have a period commencing on the Effective Date and ending at 6:00 PM Pacific Time on the date that is thirty
(30) days after Buyer has received all Property Information set forth in Schedule 6(a)(3) (the “Due Diligence
Period”) to examine, inspect, and investigate the Property and, in Buyer’s sole judgment and discretion,
to determine whether Buyer desires to purchase the Property. Buyer agrees to submit a notice to Seller confirming Buyer has received
all Property Information once received and the date of the notice will become the Effective Date. In the event Seller agrees during
the Due Diligence Period to cure any objection(s) raised by Buyer, the Closing Date shall be five (5) days after all such objections
are cured, but in no event exceeding thirty (30) days past the original Closing Date, unless Buyer and Seller agree in writing
to extend the Closing Date more than thirty (30) days past the original Closing Date.

 

(b)              
Buyer may terminate this Agreement for any or no reason by giving written notice of such termination to Seller on or before
the last day of the Due Diligence Period. If this Agreement is terminated pursuant to this Section 7, the Deposit shall
be immediately refunded to Buyer, and neither party shall have any further liability or obligation to the other under this Agreement
except for the indemnity provisions set forth in Section 7(c) of this Agreement and any other provision of this Agreement
that is expressly intended to survive the termination of this Agreement. In the event this Agreement is terminated escrow is required
to return Buyer’s Deposit immediately and Seller agrees and will not cause escrow to delay the return of the Deposit to Buyer
for any reason. If Buyer does not elect to exercise its right to terminate this Agreement during the Due Diligence Period, then
Buyer shall notify Seller of Buyer’s intention to acquire the Property before the expiration of the Due Diligence Period.
If Buyer does not, before the expiration of the Due Diligence Period, either affirmatively notify Seller of its desire to acquire
the Property or send a termination notice to Seller, then Buyer will be deemed to have elected to terminate this Agreement. If
Buyer elects to proceed to purchase the Property, and this Agreement is not terminated or deemed terminated before the expiration
of the Due Diligence Period, then the Deposit shall be non-refundable except in the event of a default hereunder by Seller.

 

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(c)               
Subject to the rights of tenants under the Leases, Seller will provide to Buyer reasonable access to the Property for the
purpose of examining any or all aspects thereof, including conducting on a non-destructive basis, surveys, architectural, engineering,
non-invasive geo-technical and environmental inspections and tests, and any other inspections, studies, or tests reasonably required
by Buyer. Buyer shall give Seller reasonable notice by telephone or e-mail before entering onto any of the properties that comprise
the Property to perform inspections or tests, and in the case of tests (i) Buyer shall specify to Seller the precise nature of
the test to be performed, and (ii) Seller may require, as a condition precedent to Buyer’s right to perform any such test,
that Buyer deliver Seller evidence of public liability and other appropriate insurance naming Seller as an additional insured thereunder.
Such examination of the physical condition of the Property, including the Third Party Inspection Report (defined in Section
7(d) below) may include an examination for the presence or absence of hazardous or toxic materials, substances or wastes, which
shall be performed or arranged by Buyer at Buyer’s sole expense. Buyer shall keep the Property free and clear of any liens
and will indemnify, protect, defend, and hold each Seller Related Party (defined below) harmless from and against all losses, costs,
damages, claims, liabilities and expenses (including reasonable attorneys’ fees and court costs) (collectively, “Losses”)
arising from damage to the Property and injury to persons asserted against or incurred by any Seller Related Party as a result
of such entry by Buyer, its agents, employees or representatives (except that Buyer shall have no liability or indemnity obligation
for any diminution in the value of the Property as a result of any unfavorable analysis, test, study, opinion or recommendation
made to or for or reach by Buyer). If any inspection or test disturbs the Property and Buyer does not acquire the Property, Buyer
will restore the Property to substantially the same condition as existed prior to any such inspection or test. Buyer and its agents,
employees, and representatives may, upon not less than 24 hours prior telephonic notice to Seller, examine and make copies of all
books and records and other materials relating to the condition of the Property in Seller’s possession at the office where
such records are maintained. Any information provided to or obtained by Buyer with respect to the Property shall be subject to
the provisions of Section 22(p) of this Agreement. The obligations of Buyer under this Section shall survive the termination
of the Agreement.

 

(d)              
Buyer may retain a contractor or home inspector to prepare a report or reports describing the physical condition of the
Property and identify any necessary repairs or improvements (“Third Party Inspection Report”). The person
or entity preparing the Third Party Inspection Report must be licensed to perform such inspections in the jurisdiction where the
Property is located, and may not be, or have ever been, owned or controlled by Buyer or an affiliate of Buyer. Buyer will provide
a copy of the Third Party Inspection Report to Seller, and at Closing, the Purchase Price will be reduced by the amount of the
total estimated cost of the repairs or replacements identified in the Third Party Inspection Report; provided that Buyer will have
no right to a Purchase Price reduction in excess of ten percent (10%) of the original Purchase Price without Seller’s written
agreement. If the cost to make the repairs and replacements identified in the Third Party Inspection Report exceeds 10% of the
Purchase Price, and Seller does not agree to reduce the Purchase Price by the identified cost of such repairs and replacements,
then Buyer may, upon written notice to Seller at least two business days before the then-scheduled Closing Date, elect to (i)
close the transaction as contemplated with a 10% reduction of the Purchase Price or (ii) terminate this Agreement. If
Buyer terminates this Agreement in accordance with this Section 7(d), then this Agreement will have no further force or
effect, the parties will have no further obligations to each other (except for any indemnities or other provisions that expressly
survive termination of this Agreement) and Escrow Holder shall refund the Deposit to Buyer.

 

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(e)               
Notwithstanding any provision to the contrary set forth herein, in addition to the rights set forth in Sections 5(c),
5(b) and 7(d), at any time during the Due Diligence Period, Buyer may in its sole discretion, elect to designate
specified properties from the properties identified on Exhibit A as Excluded Properties as defined in Section 5(c).
In the event of such an election, Buyer shall deliver to Seller a notice stating which properties it has designated as Excluded
Properties no later than two (2) days prior to the Closing Date (the “Notice to Seller”). Upon delivery
of the Notice to Seller, the designated properties described in the Notice to Seller shall be Excluded Properties, and the terms
of Section 5(c) shall apply with respect thereto.

 

8.                 
As Is Sale.

 

(a)               
BUYER SPECIFICALLY ACKNOWLEDGES AND AGREES THAT SELLER IS SELLING AND BUYER IS PURCHASING THE PROPERTY ON AN “AS IS
WITH ALL FAULTS” BASIS AND THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE CLOSING DOCUMENTS DELIVERED BY SELLER
TO BUYER AT CLOSING, BUYER IS NOT RELYING ON ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, FROM
SELLER, ITS AGENTS, OR BROKERS AS TO ANY MATTERS CONCERNING THE PROPERTY, INCLUDING WITHOUT LIMITATION: (I) THE QUALITY, NATURE,
ADEQUACY AND PHYSICAL CONDITION OF THE PROPERTY, INCLUDING, BUT NOT LIMITED TO THE STRUCTURAL ELEMENTS, FOUNDATION, ROOF, APPURTENANCES,
ACCESS, LANDSCAPING, PARKING FACILITIES AND THE ELECTRICAL, MECHANICAL, HVAC, PLUMBING, SEWAGE, AND UTILITY SYSTEMS, FACILITIES
AND APPLIANCES, (II) THE QUALITY, NATURE, ADEQUACY, AND PHYSICAL CONDITION OF SOILS, GEOLOGY AND ANY GROUNDWATER, (III) THE EXISTENCE,
QUALITY, NATURE, ADEQUACY AND PHYSICAL CONDITION OF UTILITIES SERVING THE PROPERTY, (IV) THE DEVELOPMENT POTENTIAL OF THE PROPERTY,
AND THE PROPERTY’ USE, HABITABILITY, MERCHANTABILITY, OR FITNESS, SUITABILITY, VALUE OR ADEQUACY OF THE PROPERTY FOR ANY
PARTICULAR PURPOSE, (V) THE ZONING OR OTHER LEGAL STATUS OF THE PROPERTY OR ANY OTHER PUBLIC OR PRIVATE RESTRICTIONS ON USE OF
THE PROPERTY, (VI) THE COMPLIANCE OF THE PROPERTY OR ITS OPERATION WITH ANY APPLICABLE CODES, LAWS, REGULATIONS, STATUTES, ORDINANCES,
COVENANTS, CONDITIONS AND RESTRICTIONS OF ANY GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY OR OF ANY OTHER PERSON OR ENTITY, (VII)
THE PRESENCE OR ABSENCE OF HAZARDOUS MATERIALS (AS DEFINED IN ANY ENVIRONMENTAL STATUTE) ON, UNDER OR ABOUT THE PROPERTY OR THE
ADJOINING OR NEIGHBORING PROPERTY, (VIII) THE QUALITY OF ANY LABOR AND MATERIALS USED IN ANY IMPROVEMENTS ON THE PROPERTY, (IX)
THE CONDITION OF TITLE TO THE PROPERTY, (X) THE LEASES (INCLUDING ALL SERVICE CONTRACTS) AND ANY OTHER AGREEMENTS AFFECTING THE
PROPERTY AND (XI) THE ECONOMICS OF ANY PAST OR FUTURE OPERATIONS OF THE PROPERTY.

 

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9.                 
Survival of Representations and Warranties After Closing.

 

(a)               
All representations and warranties of Seller herein shall survive the Closing for a period of one (1) year (the “Limitation
Period”).

 

(b)              
Buyer shall provide actual written notice to Seller of any breach of any of Seller’s warranties or representations
of which Buyer acquires knowledge, through any means, at any time after the Closing Date but prior to the expiration of the Limitation
Period, and shall allow Seller thirty (30) days within which to cure such breach, or, if such breach is susceptible of cure but
cannot reasonably be cured within thirty (30) days, an additional reasonable time period required to effect such cure so long as
such cure has been commenced within such thirty (30) days and diligently pursued but in no event more than ninety (90) days. If
Seller fails to cure such breach after actual written notice and within such cure period (as extended), Buyer’s sole remedy
shall be an action at law for damages as a consequence thereof, which must be commenced, if at all, within the six (6) months after
the expiration of the Limitation Period.

 

10.             
Closing.

 

(a)               
The purchase and sale transaction contemplated in this Agreement shall occur on the date specified in the Basic Terms section
of this Agreement (the “Closing Date”), and accomplished by recording the Deed (as defined in Section 14) in
the Official Records of the particular County in which each of the individual properties that constitute the Property is located
(the “Official Records”), provided that all conditions precedent to the Closing have been fulfilled or
have been waived in writing by the respective party entitled to waive same.

 

(b)              
On or before the Closing Date, the parties shall establish the usual form of deed and money escrow with Escrow Holder. Counsel
for the respective parties are hereby authorized to execute the escrow trust instructions as well as any amendments thereto.

 

11.             
Conditions to Buyer’s Obligation to Close.

 

(a)               
Buyer will not be obligated to proceed with the Closing unless and until each of the following conditions has been either
fulfilled or waived in writing by Buyer:

 

(1)              
This Agreement shall not have been previously terminated pursuant to any other provision hereof;

 

(2)              
Seller shall be prepared to deliver or cause to be delivered to Buyer all instruments and documents to be delivered to Buyer
at the Closing pursuant to Section 14 and Section 16 or any other provision of this Agreement; and

 

    	11

    	 

    

  

(3)              
All property managing services provided to the Property under any property management agreement shall have been terminated
on or prior to the Closing at no cost, liability or expense to Buyer.

 

(b)              
If any of the foregoing conditions are not fulfilled on or before the time for Closing hereunder, then subject to the provisions
of Section 18(b) hereof, Buyer may elect, upon notice to Seller, to terminate this Agreement, in which event the Deposit
shall be returned to Buyer, and neither party shall have any further liability or obligation to the other, except for the provisions
of this Agreement which are expressly stated to survive the termination of this Agreement.

 

12.             
Conditions to Seller’s Obligation to Close.

 

(a)               
Seller will not be obligated to proceed with the Closing unless and until each of the following conditions has been fulfilled
or waived in writing by Seller:

 

(1)              
Buyer shall be prepared to pay to Seller the Purchase Price and all other amounts to be paid to it at Closing pursuant to
the provisions of this Agreement;

 

(2)              
Buyer shall be prepared to deliver to Seller all instruments and documents to be delivered to Seller at the Closing pursuant
to Section 15  and Section 16 or any other provision of this Agreement; and

 

(3)              
This Agreement shall not have been previously terminated pursuant to any other provision hereof.

 

(b)              
If the foregoing conditions are not fulfilled on or before the time for Closing hereunder, then subject to the provisions
of Section 18(a) hereof, Seller may elect, upon notice to Buyer, to terminate this Agreement, in which event the Deposit
shall be returned to Buyer, and neither party shall have any further liability or obligation to the other, except for the provisions
of this Agreement which are expressly stated to survive the termination of this Agreement.

 

13.             
Title Insurance. (a) Following the execution and delivery of this Agreement, at Seller’s expense, Buyer shall
cause Title Company to deliver to Buyer a commitment for the Title Policy described in subsection (b) below (the “Title
Commitment”), together with legible copies of all of the underlying documentation described in such Title Commitment.
Seller shall, within two business days after the execution of this Agreement, deliver to Buyer the most recent surveys of the properties
that comprise the Property in Seller’s possession or control (the “Surveys”).

 

(a)               
At Closing, and as a condition thereof, Buyer shall receive an owner’s title insurance policy (the “Title
Policy”) issued by Title Company, dated the day of Closing, with liability in the full amount of the Purchase Price,
the form of which shall be an American Land Title Association Owner’s Policy, Standard Form B, 1992 (or other form preferred
by Buyer or required or promulgated pursuant to applicable state insurance regulations), subject only to the Permitted Exceptions
(defined below). The Title Policy may contain any endorsements requested by Buyer.

 

    	12

    	 

    

  

(b)              
Prior to the expiration of the Due Diligence Period, Buyer shall review title to the Property as disclosed by the Title
Commitment and the Surveys, and satisfy itself as to the availability from the Title Company of the Title Policy and all requested
endorsement to such Title Policy. Buyer shall have the right to obtain an update of the Surveys or to secure new surveys at any
time prior to the expiration of the Due Diligence Period.

 

(c)               
Seller shall have no obligation to remove or cure title objections, except for (1) liens of an ascertainable amount created
by Seller, which liens Seller shall cause to be released at the Closing or affirmatively insured over by the Title Company with
Buyer’s approval, (2) any exceptions or encumbrances to title which are created by Seller after the date of this Agreement
without Buyer’s consent, and (3) non-consensual liens which liens Seller shall cause to be released at the Closing or affirmatively
insured over by the Title Company. In addition, Seller shall provide the Title Company with any affidavits, ALTA statements or
personal undertakings (collectively, an “Owner’s Affidavit”), in form and substance reasonably
acceptable to the Title Company, that will permit the Title Company to remove the standard “mechanics lien” and “GAP”
exceptions and otherwise issue the Title Policy in the form required by Buyer.

 

(d)              
“Permitted Exceptions” shall mean: (1) any exception arising out of an act of Buyer or its representatives,
agents, employees or independent contractors; (2) zoning and subdivision ordinances and regulations; (3) the specific exceptions
in the Title Commitment that the Title Company has not agreed to insure over or remove from the Title Commitment as of the end
of the Due Diligence Period and that Seller is not required to remove as provided above; (4) items shown on the Surveys or any
updated or new surveys of the Property which have not been removed as of the end of the Due Diligence Period; (5) real estate taxes
and assessments not yet due and payable; and (6) rights of tenants under the Leases, as occupancy tenants only and without any
rights of first refusal, rights of first offer or purchase options.

 

14.             
Documents to be Delivered to Buyer at Closing. At Closing, Seller shall deliver or cause to be delivered to Buyer
each of the following instruments and documents:

 

(a)               
Deed. The Deed, in the form attached hereto as Exhibit C.

 

(b)              
Bill of Sale. The Bill of Sale covering the Personal Property, in the form attached hereto as Exhibit D.

 

(c)               
The Title Policy. The Title Policy may be delivered after the Closing if at the Closing the Title Company issues
a currently effective, duly-executed “marked-up” Title Commitment and irrevocably commits in writing to issue the Title
Policy in the form of the “marked-up” Title Commitment after the Closing.

 

    	13

    	 

    

  

(d)              
Assignment of Leases and Contracts. An Assignment of Leases and Contracts, in the form attached hereto as Exhibit E,
transferring and assigning to Buyer, to the extent the same are assignable, all right, title and interest of Seller in the Leases
and the other property described therein.

 

(e)               
Transfer Tax Declarations. Original copies of any required real estate transfer tax or documentary stamp tax declarations
executed by Seller or any other similar documentation required to evidence the payment of any tax imposed by the state, county
and city on the transaction contemplated hereby.

 

(f)                
FIRPTA. An affidavit, in the form attached hereto as Exhibit F, stating Seller’s U.S. taxpayer
identification number and that Seller is a “United States person”, as defined by Internal Revenue Code Section 1445(f)(3)
and Section 7701(b).

 

(g)               
Owner’s Affidavit. The Owner’s Affidavit materials referred to in Section 13(d) above.

 

(h)               
Surveys, Plans, Permits and Specifications.All existing surveys, blueprints, drawings, plans and specifications,
permits, and operating manuals for or with respect to any of the properties that comprise the Property or any part thereof to the
extent the same are in Seller’s possession.

 

(i)                 
Keys.All keys to the improvements, to the extent the same are in Seller’s possession.

 

(j)                
Leases. Originals of all Leases in effect on the Closing Date (or copies thereof in the event the originals are
not in Seller’s possession, or in the possession of Sellers’ property manager and such copies of Leases are in Seller’s
possession), and the tenant files with respect to such Leases, to the extent the same are in Seller’s possession.

 

(k)              
Certificate.A certificate (the “Update”) of Seller dated as of the Closing Date certifying
that the representations and warranties of Seller set forth in Section 6(a) of this Agreement as applicable, remain true
and correct in all material respects as of the Closing Date, except as to Schedule 6(a)(5), which Update shall be dated
no earlier than three (3) days prior to Closing.

 

(l)                 
Other Deliveries. Such other documents and instruments as may be required by any other provision of this Agreement
or as may reasonably be required to carry out the terms and intent of this Agreement.

 

15.             
Documents to be Delivered to Seller at Closing. At Closing, Buyer shall deliver or cause to be delivered to Seller
each of the following instruments, documents and amounts:

 

    	14

    	 

    

  

(a)               
Purchase Price. The Purchase Price, subject to adjustment and proration as provided in Section 17 below.

 

(b)              
Transfer Tax Declarations. Original copies of any required real estate transfer tax or documentary stamp tax declarations
executed by Buyer or any other similar documentation required to evidence the payment of any tax imposed by the state, county and
city on the transaction contemplated hereby.

 

(c)               
Assignment of Leases. A counterpart of the Assignment of Leases and Contracts, in the form attached hereto as Exhibit
E.

 

(d)              
Certificate.A certificate of Buyer (the “Buyer’s Update”) dated as of the Closing
Date certifying that the representations and warranties of Buyer set forth in Section 6(b) of this Agreement as applicable,
remain true and correct in all material respects as of the Closing Date, which Buyer’s Update shall be dated no earlier than
three (3) days prior to Closing.

 

(e)               
Other Documents. Such other documents and instruments as may be required by any other provision of this Agreement
or as may reasonably be required to carry out the terms and intent of this Agreement.

 

16.             
Documents to be Delivered by Seller and Buyer at Closing. At Closing, Buyer and Seller shall deliver or cause to
be delivered each of the following instruments and documents:

 

(a)               
Escrow Instructions. Escrow instructions (as described in Section 10(b)).

 

(b)              
Settlement Statement. A fully executed settlement statement.

 

(c)               
Notice to Tenants. A duly executed notice to each of the tenants under the Leases.

 

17.             
Prorations and Adjustments.

 

(a)               
The following items shall be prorated and adjusted based upon the number of calendar days in the measuring period between
Seller and Buyer as of midnight on the date of Closing, except as otherwise specified:

 

(1)              
Taxes. All real estate taxes and assessments (“Taxes”) assessed against the Property for
the year of Closing shall be prorated as follows: Seller will be responsible for the payment of Taxes applicable to the period
before the Closing Date, and Buyer will be responsible for the period on and after the Closing Date. If the actual taxes and assessments
cannot be determined for such year as of the Closing Date, then the parties shall make such proration based upon One Hundred and
Ten percent (110%) of the most recently issued tax bill for the Property and thereafter, make a final adjustment of such Taxes
upon receipt of the final bill. The provisions of this Section 17(a)(1) shall survive Closing.

 

    	15

    	 

    

  

(2)              
Utilities. All utilities shall be prorated based upon estimates using the most recent actual invoices. Seller shall
receive a credit for the amount of deposits, if any, with utility companies that are transferable and that are assigned to Buyer
at the Closing. In the case of non-transferable deposits, Buyer shall be responsible for making any security deposits required
by utility companies providing service to the Property.

 

(3)              
Collected Rent. Buyer shall receive a credit for any rent and other income (and any applicable state or local tax
on rent) under Leases collected by Seller before Closing that applies to any period after Closing. Uncollected rent and other uncollected
income shall not be prorated at Closing. After Closing, Buyer shall apply all rent and income collected by Buyer from a tenant
(x) first to such tenant’s rental obligations for the month in which the Closing occurs, (y) next to such tenant’s
monthly rental for the month in which the payment is made, and (z) then to arrearages in the reverse order in which they were due,
remitting to Seller, after deducting collection costs, any rent or expense reimbursements properly allocable to Seller’s
period of ownership. Buyer shall bill and attempt to collect such rent arrearages in the ordinary course of business, but shall
not be obligated to engage a collection agency or take legal action to collect any rent arrearages. Any rent or other income received
by Seller or Buyer after Closing which are owed to Seller or Buyer shall be remitted to Seller or Buyer as applicable, promptly
after receipt.

 

(b)              
Tenant Security Deposits. All unapplied tenant security deposits (and interest thereon if required by law or contract
to be earned thereon) under the Leases, shall be credited to Buyer at Closing.

 

(1)              
Service Contracts. With respect to any contracts that are assumed by Buyer and survive the Closing, Seller shall
receive a credit for prepaid charges and premiums applicable to Buyer’s period of ownership. The Buyer shall receive a credit
for any payments made in arrears. In addition and without limitation of the foregoing, Buyer shall receive a credit under any assumed
contract (each a “Service Provider Contract”) in which Seller has received any advance payments or other
income from the servicer provider under such Service Provider Contract in exchange for agreeing to enter into such Service Contract
(regardless of whether such advance payment or other income was paid in a lump sum or in installments). Any lump sum payments shall
be pro-rated on a straight line basis over the term of any applicable Service Provider Contract.

 

(2)              
Owner Deposits. Seller shall be entitled to the return of all bonds, deposits, letters of credit, set aside letters
or other similar items, if any, that are outstanding with respect to the Property that have been provided by Seller or any of its
affiliates, agents or investment advisors to any governmental agency, public utility, or similar entity (collectively, “Owner
Deposits”). Buyer shall replace such Owner Deposits. To the extent that any funds are released as a result of the
termination of any Owner Deposits for which Seller did not receive a credit, such funds shall be delivered to Seller immediately
upon their receipt.

 

    	16

    	 

    

  

(c)               
Final Prorations. With regards to any prorations set forth in this Section 17 that are based upon estimates,
such prorations shall be readjusted based upon the actual bills after the Closing and before the expiration of the Limitation Period.
The provisions of this Section 17(c) shall survive Closing.

 

18.             
Default; Termination(a)               
. (a) IF THE CLOSING FAILS TO OCCUR BECAUSE OF BUYER’S DEFAULT, THE DEPOSIT SHALL BE RETAINED BY SELLER AS LIQUIDATED
DAMAGES. THE PARTIES HERETO EXPRESSLY AGREE AND ACKNOWLEDGE THAT SELLER’S ACTUAL DAMAGES IN THE EVENT OF A DEFAULT BY BUYER
WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO ASCERTAIN BECAUSE OF THE NATURE OF THE PROPERTY AND THAT THE AMOUNT OF THE DEPOSIT
REPRESENTS THE PARTIES’ REASONABLE ESTIMATE OF SUCH DAMAGES. THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED
AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF ANY APPLICABLE LAWS, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS SECTION 18, SELLER AND BUYER AGREE THAT THIS LIQUIDATED DAMAGES
PROVISION IS INTENDED TO BE SELLER’S SOLE AND EXCLUSIVE REMEDY FOR A DEFAULT BY BUYER, BUT IS NOT INTENDED AND SHOULD NOT
BE DEEMED OR CONSTRUED TO LIMIT IN ANY WAY BUYER’S INDEMNIFICATION OBLIGATIONS UNDER THIS AGREEMENT.

 

SELLER’S INITIALS: _____                  BUYER’S INITIALS: _____

 

 

(b)              
If Seller defaults in any material respect hereunder, then provided Buyer is not in default any material respect, Buyer
may, at its sole election, either:

 

(1)              
Terminate this Agreement, whereupon the Deposit shall be promptly returned to Buyer, as well as Buyer’s actual out
of pocket costs to unrelated and independent third party vendors, including reasonable attorneys’ fees incurred as a result
of this transaction in an amount not to exceed One Hundred Thousand and 00/100 Dollars ($100,000.00), and neither party shall have
any further liability or obligation to the other, except for the provisions of this Agreement which are expressly stated to survive
the termination of this Agreement; or

 

(2)              
Assert and seek judgment against Seller for specific performance with respect to one or more (at Buyer’s election)
of the properties that comprise the Property; provided that if Buyer elects to purchase less than all of such properties, then
the Purchase Price will be reduced to the percentage of the original Purchase that the number of properties homes purchased bears
to the original number of properties that comprise the Property. If a court of competent jurisdiction determines that the remedy
of specific performance is not available to Buyer, then Buyer shall have the right to assert and seek judgment against Seller for
actual contract damages.

 

    	17

    	 

    

  

19.             
Expenses.

 

(a)               
Buyer shall pay: (i) one-half (1⁄2) of the fee charged by Escrow Holder, (ii) the cost of a new or updated ALTA survey
if Buyer elects to commission such a survey, (iii) the premium for an extended coverage ALTA Owner’s Title policy (including
any endorsements reasonably required by Buyer), (iv) all recording costs, and (v) all sales, transfer and intangible taxes, an
any other taxes, fees or recording charges that may be imposed on the transaction (whether on the deed, title or otherwise) with
the exception of property taxes in arrears.

 

(b)              
Seller shall pay (i) one-half (1⁄2) of the fee charged by Escrow Holder, and (ii) all costs related to title searches
and/or title abstraction of the Properties.

 

(c)               
All other costs, charges, and expenses shall be borne and paid as provided in this Agreement, or in the absence of such
provision, in accordance with custom where the properties in question are located.

 

20.             
Intermediaries. (a) Intentionally deleted.

 

(b)              
Seller represents to Buyer, and Buyer represents to Seller, that there are no fees owed to any broker, finder, or intermediary
of any kind with whom such party has dealt in connection with this transaction. If any claim is made for broker’s or finder’s
fees or commissions in connection with the negotiation, execution or consummation of this Agreement or the transactions contemplated
hereby, each party shall defend, indemnify and hold harmless the other party from and against any such claim based upon any statement,
representation or agreement of such party, which obligation shall survive Closing.

 

21.             
Destruction of Improvements.

 

(a)               
If, prior to Closing, any of the Improvements on any of the properties that comprise the Property are damaged or destroyed
such that the cost of repair or replacement of such improvements is material (“Material Damage”), or
a condemnation proceeding is commenced or threatened in writing by a governmental or quasi-governmental agency with the power of
eminent domain (“Condemnation”), then:

 

(1)              
Buyer may elect, within fourteen (14) days from receipt of notice of said Material Damage, or notice of a Condemnation,
by written notice to Seller, to exclude the individual property affected by such event from this transaction; provided that if
more than twenty-five percent (25%) of the properties that comprise the Property suffer Material Damage, or become the subject
of a Condemnation, then Buyer may terminate this Agreement. If necessary, the time of Closing shall be extended to permit Buyer
to evaluate and make the elections contemplated in this Section 21. If Buyer elects to terminate this Agreement in accordance
with this Section 21, then the Deposit shall be returned to Buyer and, except for the provisions of this Agreement that
expressly survive Closing or earlier termination of this Agreement, this Agreement shall be void and of no further force and effect,
and neither party shall have any liability to the other by reason hereof; or

 

    	18

    	 

    

  

(2)              
If Buyer elects to exclude certain properties from this transaction, and proceed to the Closing, then the Purchase Price
will be reduced to a fraction of the original Purchase Price equal to the ratio of the properties that Buyer purchases to the number
of properties that originally comprised the Property. If, however, it is determined that any damage to one or more properties does
not constitute a Material Damage, or Buyer elects to purchase one or more properties that have suffered Material Damage, then the
transaction contemplated hereby shall be closed without a reduction in the Purchase Price, and Seller shall assign to Buyer Seller’s
rights in any insurance proceeds or Condemnation award to be paid to Seller in connection with such damage or Condemnation, and,
in the case of Material Damage, Seller shall pay to Buyer an amount equal to the deductible under Seller’s policy of casualty
insurance and Seller shall execute and deliver to Buyer all required proofs of loss, assignments of claims and other similar items.

 

(b)              
For purposes of this Section 21, damage or destruction will be considered “Material Damage” if one or
more of the properties that comprise the Property are rendered uninhabitable, or if the time to repair such damage, despite reasonable
expectations with respect to repairs, is reasonably by Buyer to exceed three months. If, prior to Closing, any of the improvements
on the Property are damaged or destroyed and such damage is not Material Damage, Buyer shall remain obligated to close hereunder
with no abatement in the Purchase Price. At Closing, Seller shall assign to Buyer Seller’s rights in any insurance proceeds
to be paid to Seller in connection with such damage or destruction, and Buyer shall receive a credit against the Purchase Price
in an amount equal to the deductible amount under Seller’s casualty insurance policy.

 

22.             
General Provisions.

 

(a)               
Entire Agreement. This written Agreement, including all Exhibits attached hereto and documents to be delivered pursuant
hereto, shall constitute the entire agreement and understanding of the parties, and there are no other prior or contemporaneous
written or oral agreements, undertakings, promises, warranties, or covenants not contained herein.

 

(b)              
Amendments in Writing. This Agreement may be amended only by a written memorandum subsequently executed by all of
the parties hereto.

 

    	19

    	 

    

  

(c)               
Waiver. No waiver of any provision or condition of this Agreement by any party shall be valid unless in writing signed
by such party. No such waiver shall be taken as a waiver of any other or similar provision or of any future event, act, or default.

 

(d)              
Time of the Essence. Time is of the essence of this Agreement. However, if Buyer is acting diligently and in good
faith to proceed with the consummation of the transaction contemplated by this Agreement on the Closing Date, Seller will agree,
upon the written request of Buyer, to extend the Closing Date up to three (3) business days. In the computation of any period of
time provided for in this Agreement or by law, any date falling on a Saturday, Sunday or legal holiday when banks are not open
for business in the State where the Property is located, will be deemed to refer to the next day which is not a Saturday, Sunday,
or legal holiday when banks are not open for business in such State.

 

(e)               
Severability. If any provision of this Agreement is rendered unenforceable in whole or in part, such provision will
be limited to the extent necessary to render the remainder of the Agreement valid, or will be deemed to be removed from this Agreement,
as circumstances require, and this Agreement shall be construed as if said provision had been incorporated herein as so limited,
or as if said provision has not been included herein, as the case may be.

 

(f)                
Headings. Headings of sections are for convenience of reference only, and shall not be construed as a part of this
Agreement.

 

(g)               
Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefits of the parties hereto,
and their respective successors, and permitted assigns. This Agreement may not be assigned by either party without the consent
of the other party, except that Buyer may, without consent from Seller, assign this Agreement to an affiliate of Buyer, Reven Housing
REIT, Inc., or any affiliate of Reven Housing REIT, Inc. or any entity formed by Buyer for the purpose of acquiring or taking title
to the Property; provided that such assignment will not release Buyer from its obligations under this Agreement. Any assignment
in accordance with this Section 22(g) will entitle the assignee thereunder to all rights and benefits, and subject such
assignee to all obligations, of Buyer hereunder.

 

(h)               
Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed,
or sent by Federal Express, UPS or other recognized overnight courier service for next business day delivery, or sent by facsimile
transmission or electronic mail (so long as reasonable evidence that such notice was sent and received is obtained by the sending
party). Any notice provided hereunder shall be deemed to be given when sent in accordance with this provision, but any time to
respond to such notice as provided in this Agreement will not commence until the actual receipt of the notice. Notices will be
deemed valid if sent to the parties as follows:

 

    	20

    	 

    

  

IF TO BUYER

 

Reven Housing
Tennessee, LLC

P.O. Box
1459

La Jolla,
California 92038-1459

Phone: 858-459-4000

e-mail: cmc@revenhousingreit.com

e-mail: mps@revenhousingreit.com

Attention:
Chad Carpenter and Michael Soni

 

 

with a copy to:

 

Greenberg Traurig, LLP

1840 Century Park East

Suite 1900

Los Angeles, California
90067

Phone: (310) 586-6505

e-mail: treisterd@gtlaw.com

Attention: Dana S. Treister

 

with an additional copy
to:

 

Greenberg Traurig, LLP

1840 Century Park East

Suite 1900

Los Angeles, California
90067

Phone: (310) 586-7855

e-mail: presants@gtlaw.com

Attention: Sandy
Presant

 

    	21

    	 

    

   

IF TO SELLER:

 

Gregory Griffin

7855 Fallstone

Memphis, TN 38125

Phone:

e-mail:

Attention: Gregory Griffin

 

With copies to:

 

______________________

______________________

______________________

Phone:

e-mail:

Attention:

 

 

 

IF TO ESCROW HOLDER:

   

Fidelity National Title
Insurance Company

1300 Dove Street, Suite
130

Newport Beach, California 
92660

Phone: (949) 221-4715

e-mail: paul.mcdonald@fnf.com

Attention:  Paul
McDonald

 

  

or to such additional or other persons,
at such other address or addresses as may be designated by notice from Buyer or Seller, as the case may be, to the other. Notices
by mail shall be sent by United States certified or registered mail, return receipt requested, postage prepaid, and shall be deemed
given upon receipt or refusal of receipt. Notices by facsimile or electronic mail shall be deemed given and effective upon receipt
or refusal of receipt. Notices by overnight courier shall be deemed given and effective upon receipt or refusal of receipt from
Federal Express, UPS or another recognized overnight courier service.

 

(i)                 
Governing Law; Venue. To the extent enforceable, the parties agree that this Agreement shall be governed in all respects
by the internal laws of the State of California; provided that if the dispute involves an individual property the law of the State
where such property is located will apply. In any dispute arising out of or related to this Agreement, an action must be brought
in Federal or State court, as applicable, in the County of Los Angeles, California. The provisions of this Section 22(i)
will survive the termination of this Agreement.

 

    	22

    	 

    

  

(j)                
Counterparts. This Agreement may be executed in any number of identical counterparts, any or all of which may contain
the signatures of less than all of the parties, and all of which shall be construed together as but a single instrument.

 

(k)              
Attorneys’ Fees. If any action or proceeding brought by either party against the other under this Agreement,
the prevailing party shall be entitled to recover all costs and expenses including its attorneys’ fees in such action or
proceeding in such amount as the court may adjudge reasonable. The prevailing party shall be determined by the court based upon
an assessment of which party’s major arguments made or positions taken in the proceedings could fairly be said to have prevailed
over the other party’s major arguments or positions on major disputed issues in the court’s decision. If the party
that commenced or instituted the action, suit or proceeding dismisses or discontinues it without the concurrence of the other party,
such other party shall be deemed the prevailing party. The provisions of this Section 22(k) will survive any termination
of this Agreement.

 

(l)                 
Construction. This Agreement will not be construed more strictly against either party by virtue of the fact that
it was prepared by one party or its counsel, it being recognized that each party hereto has had the opportunity to review, have
its counsel review, and provide input into this Agreement. All words herein that are expressed in the neuter gender shall be deemed
to include the masculine, feminine and neuter genders and any word herein that is expressed in the singular or plural shall be
deemed, whenever appropriate in the context, to include the plural and the singular.

 

(m)             
Reporting Obligations. Seller and Buyer hereby designate Escrow Holder to act as and perform the duties and obligations
of the “reporting person” with respect to the transaction contemplated by this Agreement for purposes of 26 C.F.R.
Section 1.6045-4(e)(5) relating to the requirements for information reporting on real estate transactions. If required under
applicable law, Seller, Buyer and Escrow Holder shall execute at Closing a Designation Agreement designating the Escrow Holder
as the reporting person with respect to the transaction contemplated by this Agreement.

 

(n)               
1031 Exchange. Either party may involve this transaction in a like-kind exchange under Internal Revenue Code Section
1031, the cost and expense of which will be borne solely by the party invoking such structure. Each party shall reasonably cooperate
with the other in such structure, provided that the party that is not participating in a like-kind exchange shall incur no material
costs, expenses or liabilities in connection with the other’s exchange and will not be required to take title to or contract
for purchase of any other property. If either party uses a qualified intermediary or exchange accommodator to effectuate the exchange,
any assignment of the rights or obligations of such party shall not relieve, release or absolve such party of its obligations to
the other.

 

    	23

    	 

    

  

(o)              
Bulk Sales. Seller agrees to indemnify and hold Buyer, any permitted assignee of Buyer’s rights under this
Agreement and any of their respective affiliates, officers, directors, shareholders, members, partners, agents, employees and advisors
(collectively, the “Indemnified Parties”) harmless from and against any and all claims, damages, losses,
costs, expenses, liens, actions and causes of actions (including, without limitation, reasonable attorneys’ fees and expenses)
that may be incurred by, or asserted against, Buyer, any of the other Indemnified Parties or the Property by reason of either such
noncompliance with the Bulk Sales laws applicable in the state or states where the Property is located, or the failure of Seller
to have paid any taxes, penalties or interest which are the subject of such laws. The provisions and obligations of this Section
24(o) shall survive the Closing.

 

(p)              
Confidentiality. Buyer and its representatives shall hold in strictest confidence all data and information obtained
with respect to the operation and management of the Property, whether obtained before or after the execution and delivery hereof,
and shall not use such data or information for purposes unrelated to this Agreement or disclose the same to others except as expressly
permitted hereunder. The preceding sentence shall not be construed to prevent Buyer from disclosing to its prospective lenders
or investors, or to its officers, directors, attorneys, accountants, architects, engineers and consultants to perform their designated
tasks in connection with Buyer’s inspection and proposed acquisition of the Property, provided Buyer advises any such party
of the confidential nature of the information disclosed. However, neither party shall have this obligation concerning information
which: (a) is published or becomes publicly available through no fault of either the Buyer or Seller; (b) is rightfully
received from a third party; or (c) is required to be disclosed by law. Notwithstanding the preceding, nothing in this Agreement
will prevent or be deemed to limit Buyer’s ability to disclose the existence of this Agreement, and the nature of any material
terms herein, to the Securities and Exchange Commission or any other governmental agency to which Buyer, or its successors hereunder,
have a disclosure obligation under any applicable law.

 

[SIGNATURE PAGE FOLLOWS]

 

    	24

    	 

    

   

IN WITNESS WHEREOF,
the parties have caused this Agreement to be executed as of the day and year first above written.

 

	 	SELLER
	 	 	 
	 	Gregory Griffin, a(n) Sole Proprietor
	 	 	 
	 	By:	/s/ Gregory Griffin
	 	Name:	Gregory Griffin
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	BUYER
	 	 	 
	 	 	 
	 	REVEN HOUSING TENNESSEE, LLC
	 	a Delaware limited liability company
	 	 	 
	 	 	 
	 	By:	/s/ Chad Carpenter
	 	 	Chad Carpenter
	 	 	Chief Executive Officer

 

    	25

    	 

    

  

LIST OF EXHIBITS AND SCHEDULES

 

	EXHIBITS	DESCRIPTIONS
	1. EXHIBIT A	DESCRIPTION OF THE PROPERTIES
	2. EXHIBIT B	LIST OF CONTRACTS
	3. EXHIBIT C	FORM OF DEED
	4. EXHIBIT D	FORM OF BILL OF SALE
	5. EXHIBIT E	FORM OF ASSIGNMENT OF LEASES AND CONTRACTS 
	6. EXHIBIT F	FORM OF FIRPTA AFFIDAVIT
	 	 
	SCHEDULES	DESCRIPTIONS
	1. 6(a)(3)	PROPERTY INFORMATION
	 	 

 

    	1Form of Medium-Term Notes, Series K

 Exhibit 4.1 

[Face of Note] 

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation
(“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as requested by an authorized representative
of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein. 
  

			
	 CUSIP NO. 949746333
	  	FACE AMOUNT: $                            
	REGISTERED NO.     	  	

 WELLS FARGO & COMPANY 

MEDIUM-TERM NOTE, SERIES K 

Due Nine Months or More From Date of Issue 

8% Equity Linked Securities due August 28, 2015 

Linked to the Common Stock of Archer-Daniels-Midland Company 

WELLS FARGO & COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter
called the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or its registered assigns, the number of shares of
Underlying Stock (as defined below) or the amount of cash, as applicable, determined in accordance with the provisions set forth below under “Payment at Stated Maturity” due with respect to the face amount of
_____________________________________ DOLLARS AND ________ CENTS ($____________) on August 28, 2015 (the “Stated Maturity Date”), subject to postponement if the Determination Date (as defined below) is postponed, and
to pay interest on the Face Amount (as defined below) of this Security from September 11, 2014 or from the most recent Interest Payment Date (as defined below) to which interest has been paid or duly provided for, as the case may be, at the
rate of 8% per annum, payable on each Interest Payment Date. Interest shall be calculated on the basis of a year of 360 days with twelve 30-day months. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such
Interest Payment Date; provided that the interest payable on the Stated Maturity Date shall be paid to the Person to whom the Payment at Maturity (as defined below) is paid. The “Regular Record Date” for an Interest Payment Date
shall be the date one Business Day (as defined below) prior to such Interest Payment Date. The “Interest Payment Dates” shall be the 28th day of each month, commencing
September 28, 2014 and ending 

 
on the Stated Maturity Date. “Face Amount” shall mean, when used with respect to this Security, the amount set forth on the face of this Security as its “Face Amount.”

 Any interest not punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to the Holder of this Security not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on
which this Security may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 

Payments of interest on this Security shall be payable at the office or agency of the Company maintained for such purpose in
the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private
debts; provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or by wire transfer to such account as
may have been appropriately designated by such Person. Any cash payable on this Security at Maturity shall be paid against presentation of this Security at the office or agency of the Company maintained for that purpose in the City of Minneapolis,
Minnesota and any shares of Underlying Stock deliverable at Maturity shall be delivered against such presentation. Notwithstanding the foregoing, for so long as this Security is in the form of a Global Security registered in the name of the
Depositary, all payments on this Security in the form of cash will be made to the Depositary by wire transfer of immediately available funds, and any shares of Underlying Stock deliverable under the terms of this Security at Maturity will be
delivered to the Depositary through the book-entry facilities of the Depositary if such shares are then in book-entry form and, if such shares are then in definitive form, certificates representing such shares will be delivered pursuant to the
Depositary’s instructions. 
 Payment at Stated Maturity 

On the Stated Maturity Date, for each $50.1954 in Face Amount represented by this Security, the Holder of this Security shall
receive either, in the Company’s sole discretion, (i) a number of shares of the Underlying Stock equal to the Settlement Amount (as defined below) divided by the Closing Price (as defined below) of the Underlying Stock on the
Determination Date or (ii) an amount in cash equal to the Settlement Amount. For purposes of clause (i) of the immediately preceding sentence, (a) the number of shares of the Underlying Stock specified in such clause will be subject
to adjustment for events with an effective date or Ex-Dividend Date (as defined below), as applicable, that is after the Determination Date but on or prior to the Stated Maturity Date in the same events and in the same manner as the Share Amount (as
defined below) would be adjusted as set forth in “—Adjustment Events” below; and (b) if, as a result of a Reorganization Event (as defined below), there is more than one Underlying Stock, the Calculation Agent (as defined below)
will determine a number of shares of each Underlying Stock by reference to the proportion of the Settlement Amount attributable to each Underlying Stock. The “Underlying  

  
 2 

 
Stock” is the common stock of Archer-Daniels-Midland Company (the “Underlying Stock Issuer”). This payment is referred to herein as the “Payment at
Maturity.” 
 The “Settlement Amount” per $50.1954 Face Amount of this Security will equal: 

 

	 	•	 	 if the Final Determination Price is greater than the Upside Participation Threshold (as defined below), (i) $50.1954 plus (ii) the Upside
Participation Rate (as defined below) multiplied by the result of (a) the Final Determination Price minus (b) the Upside Participation Threshold; 

  

	 	•	 	 if the Final Determination Price is greater than or equal to the Principal Return Threshold (as defined below) and less than or equal to the Upside
Participation Threshold, $50.1954; or 

  

	 	•	 	 if the Final Determination Price is less than the Principal Return Threshold, the Downside Exchange Ratio (as defined below) multiplied by the
Final Determination Price; provided, however, that the Settlement Amount shall not be less than the Minimum Repayment Amount (as defined below). 

If a Market Disruption Event (as defined below) occurs or is continuing with respect to the Underlying Stock on the originally
scheduled Determination Date, the Determination Date will be postponed to the first succeeding Trading Day (as defined below) on which a Market Disruption Event has not occurred and is not continuing; however, if such first succeeding Trading Day
has not occurred as of the eighth scheduled Trading Day after the originally scheduled Determination Date, that eighth scheduled Trading Day shall be deemed to be the Determination Date. If the Determination Date has been postponed eight scheduled
Trading Days after the originally scheduled Determination Date and such eighth scheduled Trading Day is not a Trading Day, or if a Market Disruption Event occurs or is continuing with respect to the Underlying Stock on such eighth scheduled Trading
Day, the Calculation Agent will determine the Closing Price of the Underlying Stock on such eighth scheduled Trading Day using its good faith estimate of the Closing Price that would have prevailed for the Underlying Stock on such date. 

If the Determination Date is postponed, the Stated Maturity Date will be postponed until the later of (i) August 28, 2015
and (ii) three Business Days after the Determination Date as postponed. 
 If the Company elects to deliver shares of
the Underlying Stock on the Stated Maturity Date and the aggregate number of shares to which the Holder is entitled includes a fractional share, the Company will pay cash in lieu of delivering such fractional share in an amount equal to the value of
such fractional share, based upon the Closing Price per share of the Underlying Stock as determined by the Calculation Agent on the Business Day immediately preceding the Stated Maturity Date. 

Business Day Adjustments 

If the Stated Maturity Date or any Interest Payment Date is not a Business Day, any payments due on this Security on such day
will be made on the next succeeding Business Day, 

  
 3 

 
but interest on such payment will not accrue from and after the Stated Maturity Date or such Interest Payment Date, as applicable. 

Certain Definitions 

“Business Day” means any day, other than a Saturday or Sunday, (i) that is neither a legal holiday nor a
day on which banking institutions are authorized or required by law or regulation to close in New York, New York and (ii) on which DTC (or any successor to DTC) settles payments and/or deliveries of shares. 

“Calculation Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the
Company, which term shall, unless the context otherwise requires, include its successors under such Calculation Agent Agreement. The initial Calculation Agent shall be Wells Fargo Securities, LLC. Pursuant to the Calculation Agent Agreement, the
Company may appoint a different Calculation Agent from time to time after the initial issuance of this Security without the consent of the Holder of this Security and without notifying the Holder of this Security. 

“Calculation Agent Agreement” shall mean the Calculation Agent Agreement dated as of May 29, 2012
between the Company and the Calculation Agent, as amended from time to time. 
 The “Closing Price” for one
share of the Underlying Stock (or one unit of any other security for which a Closing Price must be determined) on any Trading Day means: 
  

	 	•	 	 if the Underlying Stock (or any such other security) is listed or admitted to trading on a national securities exchange (other than The NASDAQ
Stock Market LLC (the “NASDAQ”)), the last reported sale price, regular way, of the principal trading session on such day on the principal United States securities exchange registered under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), on which the Underlying Stock (or any such other security) is listed or admitted to trading; 

  

	 	•	 	 if the Underlying Stock (or any such other security) is a security of the NASDAQ, the official closing price published by the NASDAQ on such day;
or 

  

	 	•	 	 if the Underlying Stock (or any such other security) is not listed or admitted to trading on any national securities exchange but is included in
the OTC Bulletin Board Service (the “OTC Bulletin Board”) operated by the Financial Industry Regulatory Authority, Inc. (the “FINRA”), the last reported sale price of the principal trading session on the OTC
Bulletin Board on such day. 

  
 4 

 If the Underlying Stock (or any such other security) is listed or admitted to
trading on any national securities exchange but the last reported sale price or the official closing price published by the NASDAQ, as applicable, is not available pursuant to the preceding sentence, then the Closing Price for one share of the
Underlying Stock (or one unit of any such other security) on any Trading Day will mean the last reported sale price of the principal trading session on the over-the-counter market as reported on the NASDAQ or the OTC Bulletin Board on such day. 

If the last reported sale price or the official closing price published by the NASDAQ, as applicable, for the Underlying Stock
(or any such other security) is not available pursuant to either of the two preceding sentences, then the Closing Price per share for any Trading Day will be the mean, as determined by the Calculation Agent, of the bid price for the Underlying Stock
(or any such other security) obtained from as many recognized dealers in such security, but not exceeding three, as will make such bid prices available to the Calculation Agent. Bids of Wells Fargo Securities, LLC or any of its affiliates may be
included in the calculation of such mean, but only to the extent that any such bid is the highest of the bids obtained. The term “OTC Bulletin Board Service” will include any successor service thereto. 

The “Determination Date” is August 25, 2015. If such day is not a Trading Day, the Determination Date
will be postponed to the next succeeding Trading Day. The Determination Date is also subject to postponement as described in “Payment at Stated Maturity” above. 

The “Downside Exchange Ratio” is 0.9217. 

The “Final Determination Price” will be the Closing Price of the Underlying Stock multiplied by the
Share Amount, each as of the Determination Date. 
 A “Market Disruption Event” means the occurrence or
existence of any of the following events: 
  

	 	•	 	 a suspension, absence or material limitation of trading in the Underlying Stock on its primary market for more than two hours of trading or during
the one-half hour before the close of trading in that market, as determined by the Calculation Agent in its sole discretion; 

  

	 	•	 	 a suspension, absence or material limitation of trading in option or futures contracts relating to the Underlying Stock, if available, in the
primary market for those contracts for more than two hours of trading or during the one-half hour before the close of trading in that market, as determined by the Calculation Agent in its sole discretion; 

 

	 	•	 	 the Underlying Stock does not trade on the New York Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market or what was the
primary market for the Underlying Stock, as determined by the Calculation Agent in its sole discretion; or 

  

	 	•	 	 any other event, if the Calculation Agent determines in its sole discretion that the event materially interferes with the Company’s ability or
the ability of any of its 

  
 5 

	 	 
affiliates to unwind all or a material portion of a hedge with respect to this Security that the Company or its affiliates have effected or may effect. 

The following events will not be Market Disruption Events: 

 

	 	•	 	 a limitation on the hours or number of days of trading in the Underlying Stock in its primary market, but only if the limitation results from an
announced change in the regular business hours of the relevant market; and 

  

	 	•	 	 a decision to permanently discontinue trading in the option or futures contracts relating to the Underlying Stock. 

For this purpose, a “suspension, absence or material limitation of trading” in the applicable market will not
include any time when that market is itself closed for trading under ordinary circumstances. In contrast, a “suspension, absence or material limitation of trading” in the applicable market for the Underlying Stock or option or futures
contracts relating to the Underlying Stock, as applicable, by reason of any of: 
  

	 	•	 	 a price change exceeding limits set by that market; 

  

	 	•	 	 an imbalance of orders relating to the Underlying Stock or those contracts; or 

 

	 	•	 	 a disparity in bid and asked quotes relating to the Underlying Stock or those contracts 

will constitute a “suspension, absence or material limitation of trading” in the Underlying Stock or those contracts, as the case
may be, in the applicable market. 
 The “Minimum Repayment Amount” is $39.3231. 

The “Pricing Date” is September 5, 2014. 

The “Principal Return Threshold” is $54.4620. 

The “Share Amount” means, with respect to a share of the Underlying Stock, initially 1.0, and will be
adjusted for certain events affecting the shares of such Underlying Stock. See “–Adjustment Events” below. 

The “Upside Participation Rate” is 65%. 

The “Upside Participation Threshold” is $55.4659. 

A “Trading Day” means a day, as determined by the Calculation Agent, on which trading is generally conducted
on the principal trading market for the Underlying Stock (as determined by the Calculation Agent, in its sole discretion), the Chicago Mercantile Exchange and the Chicago Board Options Exchange and in the over-the-counter market for equity
securities in the United States. 

  
 6 

 Calculation Agent 

All determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the
Calculation Agent and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security. All percentages and other amounts resulting from any calculation with respect to this Security
will be rounded at the Calculation Agent’s discretion. 
 Events of Default and Acceleration 

In case an Event of Default, as defined in the Indenture, with respect to this Security has occurred and is continuing, the
amount payable to the Holder of this Security upon any acceleration permitted by this Security, with respect to each $50.1954 Face Amount of this Security, will be an amount in cash equal to the Settlement Amount, calculated as provided herein, plus
accrued but unpaid interest, if any, to but excluding the date of acceleration. The Settlement Amount will be calculated as though the date of acceleration were the Determination Date. 

Adjustment Events 
 The
Share Amount of the Underlying Stock is subject to adjustment by the Calculation Agent as a result of the dilution and reorganization events described in this section. 

How adjustments will be made 

If one of the events described below occurs with respect to the Underlying Stock and the Calculation Agent determines that the
event has a dilutive or concentrative effect on the market price of that Underlying Stock, the Calculation Agent will calculate a corresponding adjustment to the Share Amount for that Underlying Stock as the Calculation Agent deems appropriate to
account for that dilutive or concentrative effect. For example, if an adjustment is required because of a two-for-one stock split, then the Share Amount for that Underlying Stock will be adjusted by the Calculation Agent by multiplying the existing
Share Amount by a fraction whose numerator is the number of shares of the Underlying Stock outstanding immediately after the stock split and whose denominator is the number of shares of the Underlying Stock outstanding immediately prior to the stock
split. Consequently, the Share Amount will be adjusted to double the prior Share Amount, due to the corresponding decrease in the market price of the Underlying Stock. Adjustments will be made for events with an effective date or Ex-Dividend Date,
as applicable, from but excluding the Pricing Date to and including (i) if the payment on the Stated Maturity Date is to be made in cash, the Determination Date or (ii) if the payment on the Stated Maturity Date is to be made in shares of
Underlying Stock, the Stated Maturity Date (the “Adjustment Period”). 
 The Calculation Agent will also
determine the effective date of that adjustment, and the replacement of the Underlying Stock, if applicable, in the event of a consolidation or merger or certain other events in respect of the Underlying Stock Issuer. Upon making any such
adjustment, the Calculation Agent will give notice as soon as practicable to the Trustee and the Paying Agent, stating the adjustment to the Share Amount. In no event, however, will an antidilution adjustment to the Share Amount during the term of
this Security be deemed to change the Face Amount of this Security. 

  
 7 

 If more than one event requiring adjustment occurs with respect to the Underlying
Stock, the Calculation Agent will make an adjustment for each event in the order in which the events occur, and on a cumulative basis. Thus, having made an adjustment for the first event, the Calculation Agent will adjust the Share Amount for the
second event, applying the required adjustment to the Share Amount as already adjusted for the first event, and so on for any subsequent events. 

For any dilution event described below, other than a consolidation or merger, the Calculation Agent will not have to adjust
the Share Amount unless the adjustment would result in a change to the Share Amount then in effect of at least 0.10%. The Share Amount resulting from any adjustment will be rounded up or down, as appropriate, to the nearest one-hundred thousandth.

 If an event requiring an antidilution adjustment occurs, the Calculation Agent will make the adjustment with a view to
offsetting, to the extent practical, any change in the economic position of the Holder of this Security relative to this Security that results solely from that event. The Calculation Agent may, in its sole discretion, modify the antidilution
adjustments as necessary to ensure an equitable result. 
 The Calculation Agent will make all determinations with respect
to antidilution adjustments, including any determination as to whether an event requiring adjustment has occurred, as to the nature of the adjustment required and how it will be made or as to the value of any property distributed in a Reorganization
Event, and will do so in its sole discretion. In the absence of manifest error, those determinations will be conclusive for all purposes and will be binding on the Holder of this Security and the Company, without any liability on the part of the
Calculation Agent. The Holder of this Security will not be entitled to any compensation from the Company for any loss suffered as a result of any of these determinations by the Calculation Agent. The Calculation Agent will provide information about
the adjustments that it makes upon the written request of the Holder of this Security. 
 If any of the adjustments
specified below is required to be made with respect to an amount or value of any cash or other property that is distributed by an Underlying Stock Issuer organized outside the United States, such amount or value will be converted to U.S. dollars, as
applicable, and will be reduced by any applicable foreign withholding taxes that would apply to such distribution if such distribution were paid to a U.S. person that is eligible for the benefits of an applicable income tax treaty, if any, between
the United States and the jurisdiction of organization of the Underlying Stock Issuer, as determined by the Calculation Agent, in its sole discretion. 

No adjustments will be made for certain other events, such as offerings of common stock by the Underlying Stock Issuer for
cash or in connection with the occurrence of a partial tender or exchange offer for the Underlying Stock by the Underlying Stock Issuer or any other person. 

Ordinary Dividend Adjustments 

In addition to any adjustments to the Share Amount described herein, the Share Amount will be adjusted for changes (whether
positive or negative) in the regular quarterly cash dividend payable to holders of the Underlying Stock relative to the Base Quarterly Dividend (as defined below). If the Underlying Stock Issuer pays a regular quarterly cash dividend for which the
Ex-Dividend Date is within the Adjustment Period and the amount of such regular quarterly cash 

  
 8 

 
dividend (the “Current Quarterly Dividend”) differs from the Base Quarterly Dividend, the Share Amount will be adjusted (an “Ordinary Dividend Adjustment”) on
such Ex-Dividend Date so that the new Share Amount will equal the prior Share Amount multiplied by the Ordinary Dividend Adjustment Factor. If the Underlying Stock Issuer declares that it will pay no dividend in any quarter, other than in connection
with a Payment Period Adjustment (as defined below), an adjustment will be made in accordance with this paragraph on the date determined by the Calculation Agent that, but for the discontinuation of the regular quarterly cash dividend in such
quarter, would have been the Ex-Dividend Date in such quarter, corresponding to the Ex-Dividend Date in the immediately prior dividend payment period during which a regular quarterly cash dividend was paid (or, if such date is not a Trading Day, the
next day that is a Trading Day). 
 If a Reorganization Event occurs, no Ordinary Dividend Adjustment will be made in
respect of any New Stock (other than a Spin-Off Stock, as defined below), Successor Stock or Replacement Stock (each as defined below). 

The “Ordinary Dividend Adjustment Factor” will equal a fraction, the numerator of which is the Closing Price
of the Underlying Stock on the Trading Day preceding the Ex-Dividend Date for the payment of the Current Quarterly Dividend (such Closing Price, the “Ordinary Dividend Base Closing Price”), and the denominator of which equals the
Ordinary Dividend Base Closing Price of the Underlying Stock on the Trading Day preceding the Ex-Dividend Date minus the Dividend Differential (as defined below). If the Dividend Differential is negative (because the current quarterly dividend is
less than the Base Quarterly Dividend), then the Ordinary Dividend Adjustment Factor will be less than 1, and the corresponding adjustment to the Share Amount will result in a reduction of the Share Amount. 

The “Dividend Differential” equals the amount of the Current Quarterly Dividend minus the Base Quarterly
Dividend. 
 The “Base Quarterly Dividend” means, with respect to each expected Ex-Dividend Date specified
below, the corresponding declared or forecast dividend per share, as applicable, of the Underlying Stock as reported by Bloomberg Financial Markets as of the Pricing Date: 
  

						
	 Expected Ex-Dividend Date
	  	Base Quarterly Dividend (per share)
	 November 18, 2014
	  	 	 	$0.24	 
	 February 17, 2015
	  	 	 	$0.26	 
	 May 19, 2015
	  	 	 	$0.26	 
	 August 18, 2015
	  	 	 	$0.26	 

 provided that (i) if there occurs any corporate event that requires an adjustment to the Share
Amount as described in this section “Adjustment Events” or (ii) if the Underlying Stock Issuer effects a change in the periodicity of its dividend payments (e.g., from quarterly payments to semi-annual payments) (a “Payment
Period Adjustment”), then in each case the Calculation Agent will make an appropriate adjustment to the Base Quarterly Dividend with a view to offsetting, to the extent practical, any change in the economic position of a Holder of this
Security relative to this Security that results solely from that event and, in the case of a Payment Period Adjustment, references in this section “Ordinary Dividend Adjustments” to a quarter or a quarterly dividend shall be deemed to
refer instead to such other period or periodic dividend, as appropriate. In the event of a spin-off 

  
 9 

 
with respect to the Underlying Stock, the Base Quarterly Dividend for the Underlying Stock will remain unchanged and the Base Quarterly Dividend with respect to the Spin-Off Stock will be $0.00
per share. 
 Stock Splits and Reverse Stock Splits 

A stock split is an increase in the number of a corporation’s outstanding shares of stock without any change in its
stockholders’ equity. Each outstanding share will be worth less as a result of a stock split. 
 A reverse stock split
is a decrease in the number of a corporation’s outstanding shares of stock without any change in its stockholders’ equity. Each outstanding share will be worth more as a result of a reverse stock split. 

If the Underlying Stock is subject to a stock split or a reverse stock split, then once the split has become effective the
Calculation Agent will adjust the Share Amount for that Underlying Stock to equal the product of the prior Share Amount for that Underlying Stock and the number of shares issued in such stock split or reverse stock split with respect to one share of
that Underlying Stock. 
 Stock Dividends 

In a stock dividend, a corporation issues additional shares of its stock to all holders of its outstanding stock in proportion
to the shares they own. Each outstanding share will be worth less as a result of a stock dividend. 
 If the Underlying
Stock is subject to a stock dividend payable in shares of such stock that is given ratably to all holders of shares of that Underlying Stock, then once the dividend has become effective the Calculation Agent will adjust the Share Amount for that
Underlying Stock on the Ex-Dividend Date to equal the sum of the prior Share Amount for that Underlying Stock and the product of: 
  

	 	•	 	 the number of shares issued with respect to one share of that Underlying Stock, and 

 

	 	•	 	 the prior Share Amount for that Underlying Stock. 

The “Ex-Dividend Date” for any dividend or other distribution is the first day on and after which the
Underlying Stock trades without the right to receive that dividend or distribution. 
 No Adjustments for Other Dividends and Distributions

 The Share Amount will not be adjusted to reflect dividends, including cash dividends, or other distributions paid
with respect to the Underlying Stock, other than: 
  

	 	•	 	 Ordinary Dividend Adjustments described above, 

  

	 	•	 	 stock dividends described above, 

  
 10 

	 	•	 	 issuances of transferable rights and warrants as described in “ — Transferable Rights and Warrants” below, 

 

	 	•	 	 distributions that are spin-off events described in “ — Reorganization Events” below, and 

 

	 	•	 	 Extraordinary Dividends described below. 

An “Extraordinary Dividend” means each of (a) the full amount per share of the Underlying Stock of any
cash dividend or special dividend or distribution that is identified by the Underlying Stock Issuer as an extraordinary or special dividend or distribution, (b) the excess of any cash dividend or other cash distribution (that is not otherwise
identified by the Underlying Stock Issuer as an extraordinary or special dividend or distribution) distributed per share of the Underlying Stock over the immediately preceding cash dividend or other cash distribution, if any, per share of the
Underlying Stock that did not include an Extraordinary Dividend (as adjusted for any subsequent corporate event requiring an adjustment as described herein, such as a stock split or reverse stock split) if such excess portion of the dividend or
distribution is more than 5.00% of the Closing Price of that Underlying Stock on the Trading Day preceding the Ex-Dividend Date for the payment of such cash dividend or other cash distribution (such Closing Price, the “Extraordinary Dividend
Base Closing Price”) and (c) the full cash value of any non-cash dividend or distribution per share of the Underlying Stock (excluding Marketable Securities, as defined below). 

If the Underlying Stock is subject to an Extraordinary Dividend, then once the Extraordinary Dividend has become effective the
Calculation Agent will adjust the Share Amount for the Underlying Stock on the Ex-Dividend Date to equal the product of: 
  

	 	•	 	 the prior Share Amount for the Underlying Stock, and 

  

	 	•	 	 a fraction, the numerator of which is the Extraordinary Dividend Base Closing Price of the Underlying Stock on the Trading Day preceding the
Ex-Dividend Date and the denominator of which is the amount by which the Extraordinary Dividend Base Closing Price of the Underlying Stock on the Trading Day preceding the Ex-Dividend Date exceeds the Extraordinary Dividend. 

Notwithstanding anything herein, any announced increase in the ordinary dividend on the Underlying Stock will not constitute
an Extraordinary Dividend requiring an adjustment. 
 To the extent an Extraordinary Dividend is not paid in cash or is paid
in a currency other than U.S. dollars, the value of the non-cash component or non-U.S. currency will be determined by the Calculation Agent, in its sole discretion. A distribution on the Underlying Stock that is a dividend payable in shares of that
Underlying Stock, an issuance of rights or warrants or a spin-off event and also an Extraordinary Dividend will result in an adjustment to the number of shares of the Underlying Stock only as described in “—Stock Dividends” above,
“—Transferable Rights and Warrants” below or “—Reorganization Events” below, as the case may be, and not as described here. 

  
 11 

 Transferable Rights and Warrants 

If the Underlying Stock Issuer issues transferable rights or warrants to all holders of the Underlying Stock to subscribe for
or purchase that Underlying Stock at an exercise price per share that is less than the Closing Price of that Underlying Stock on the Trading Day before the Ex-Dividend Date for the issuance, then the Share Amount for that Underlying Stock will be
adjusted to equal the product of: 
  

	 	•	 	 the prior Share Amount for that Underlying Stock, and 

  

	 	•	 	 a fraction, (1) the numerator of which will be the number of shares of that Underlying Stock outstanding at the close of trading on the
Trading Day before the Ex-Dividend Date (as adjusted for any subsequent event requiring an adjustment hereunder) plus the number of additional shares of that Underlying Stock offered for subscription or purchase pursuant to the rights or warrants
and (2) the denominator of which will be the number of shares of that Underlying Stock outstanding at the close of trading on the Trading Day before the Ex-Dividend Date (as adjusted for any subsequent event requiring an adjustment hereunder)
plus the number of additional shares of that Underlying Stock (referred to herein as the “Additional Shares”) that the aggregate offering price of the total number of shares of that Underlying Stock so offered for subscription or
purchase pursuant to the rights or warrants would purchase at the Closing Price on the Trading Day before the Ex-Dividend Date for the issuance. 

The number of Additional Shares will be equal to: 
  

	 	•	 	 the product of (1) the total number of additional shares of that Underlying Stock offered for subscription or purchase pursuant to the rights
or warrants and (2) the exercise price of the rights or warrants, divided by 

  

	 	•	 	 the Closing Price of that Underlying Stock on the Trading Day before the Ex-Dividend Date for the issuance. 

If the number of shares of the Underlying Stock actually delivered in respect of the rights or warrants differs from the
number of shares of the Underlying Stock offered in respect of the rights or warrants, then the Share Amount for that Underlying Stock will promptly be readjusted to the Share Amount for that Underlying Stock that would have been in effect had the
adjustment been made on the basis of the number of shares of the Underlying Stock actually delivered in respect of the rights or warrants. 

Reorganization Events 

Each of the following is a “Reorganization Event”: 

 

	 	•	 	 the Underlying Stock is reclassified or changed (other than in a stock split or reverse stock split), 

 

	 	•	 	 the Underlying Stock Issuer has been subject to a merger, consolidation or other combination and either is not the surviving entity or is the
surviving entity but all 

  
 12 

	 	 
outstanding shares of the Underlying Stock are exchanged for or converted into other property, 

  

	 	•	 	 a statutory share exchange involving outstanding shares of the Underlying Stock and the securities of another entity occurs, other than as part of
an event described above, 

  

	 	•	 	 the Underlying Stock Issuer sells or otherwise transfers its property and assets as an entirety or substantially as an entirety to another entity,

  

	 	•	 	 the Underlying Stock Issuer effects a spin-off, other than as part of an event described above (in a spin-off, a corporation issues to all holders
of its common stock equity securities of another issuer), or 

  

	 	•	 	 the Underlying Stock Issuer is liquidated, dissolved or wound up or is subject to a proceeding under any applicable bankruptcy, insolvency or other
similar law, or another entity completes a tender or exchange offer for all the outstanding shares of the Underlying Stock. 

Adjustments for Reorganization Events 

If a Reorganization Event occurs, then the Calculation Agent will adjust the Share Amount to reflect the amount and type of
property or properties—whether cash, securities, other property or a combination thereof—that a holder of one share of the Underlying Stock would have been entitled to receive in relation to the Reorganization Event. This new property is
referred to as the “Reorganization Property.” 
 Reorganization Property can be classified into two
categories: 
  

	 	•	 	 an equity security listed on a national securities exchange, which is generally referred to as a “Marketable Security” and, in
connection with a particular Reorganization Event, “New Stock,” which may include any tracking stock, any stock received in a spin-off (“Spin-Off Stock”) or any Marketable Security received in exchange for the
Underlying Stock; and 

  

	 	•	 	 cash and any other property, assets or securities other than Marketable Securities (including equity securities that are not listed, that are
traded over the counter or that are listed on a non-U.S. securities exchange), which is referred to as “Non-Stock Reorganization Property.” 

For the purpose of making an adjustment required by a Reorganization Event, the Calculation Agent, in its sole discretion,
will determine the value of each type of the Reorganization Property. For purposes of valuing any New Stock, the Calculation Agent will use the Closing Price of the security on the relevant Trading Day. The Calculation Agent will value Non-Stock
Reorganization Property in any manner it determines, in its sole discretion, to be appropriate. In connection with a Reorganization Event in which Reorganization Property includes New Stock, for the purpose of determining the Share Amount for any
New Stock as described below, the term “New Stock Reorganization Ratio” means the product of (i) the number of shares of the New Stock 

  
 13 

 
received with respect to one share of the Underlying Stock and (ii) the Share Amount for the Underlying Stock on the Trading Day immediately prior to the effective date of the Reorganization
Event. 
 If a holder of shares of the Underlying Stock may elect to receive different types or combinations of types of
Reorganization Property in the Reorganization Event, the Reorganization Property will consist of the types and amounts of each type distributed to a holder of shares of that Underlying Stock that makes no election, as determined by the Calculation
Agent in its sole discretion. 
 If any Reorganization Event occurs, then on and after the effective date for such
Reorganization Event (or, if applicable, in the case of Spin-Off Stock, the Ex-Dividend Date for the distribution of such Spin-Off Stock) the term “Underlying Stock” herein will be deemed to mean the following, and for each share of
Underlying Stock, New Stock and/or Replacement Stock so deemed to constitute Underlying Stock, the Share Amount will be equal to the applicable number indicated: 
  

	 	(a)	 if the Underlying Stock continues to be outstanding: 

  

	 	(1)	 that Underlying Stock (if applicable, as reclassified upon the issuance of any tracking stock) at the Share Amount in effect for that Underlying
Stock on the Trading Day immediately prior to the effective date of the Reorganization Event; and 

  

	 	(2)	 if the Reorganization Property includes New Stock, a number of shares of New Stock equal to the New Stock Reorganization Ratio;

 provided that, if any Non-Stock Reorganization Property is received in the Reorganization Event,
the results of (a)(1) and (a)(2) above will each be multiplied by the “Gross-Up Multiplier,” which will be equal to a fraction, the numerator of which is the Closing Price of the Underlying Stock on the Trading Day immediately prior
to the effective date of the Reorganization Event and the denominator of which is the amount by which such Closing Price of the Underlying Stock exceeds the value of the Non-Stock Reorganization Property received per share of Underlying Stock as
determined by the Calculation Agent as of the close of trading on such Trading Day; or 
  

	 	(b)	 if the Underlying Stock is surrendered for Reorganization Property: 

 

	 	(1)	 that includes New Stock, a number of shares of New Stock equal to the New Stock Reorganization Ratio; provided that, if any Non-Stock
Reorganization Property is received in the Reorganization Event, such number will be multiplied by the Gross-Up Multiplier; or 

  

	 	(2)	 that consists exclusively of Non-Stock Reorganization Property: 

 

	 	(i)	 if the surviving entity has Marketable Securities outstanding following the Reorganization Event and either (A) such Marketable Securities
were in existence prior to such Reorganization Event or (B) such Marketable Securities were exchanged for previously outstanding Marketable Securities of 

  
 14 

	 	 
the surviving entity or its predecessor (“Predecessor Stock”) in connection with such Reorganization Event (in either case of (A) or (B), the “Successor
Stock”), a number of shares of the Successor Stock determined by the Calculation Agent on the Trading Day immediately prior to the effective date of such Reorganization Event equal to the Share Amount in effect for the Underlying Stock on
the Trading Day immediately prior to the effective date of such Reorganization Event multiplied by a fraction, the numerator of which is the value of the Non-Stock Reorganization Property per share of the Underlying Stock on such Trading Day and the
denominator of which is the Closing Price of the Successor Stock on such Trading Day (or, in the case of Predecessor Stock, the Closing Price of the Predecessor Stock multiplied by the number of shares of the Successor Stock received with respect to
one share of the Predecessor Stock); or 

  

	 	(ii)	 if the surviving entity does not have Marketable Securities outstanding, or if there is no surviving entity (in each case, a “Replacement
Stock Event”), a number of shares of Replacement Stock (selected as defined below) with an aggregate value on the effective date of such Reorganization Event equal to the value of the Non-Stock Reorganization Property multiplied by the
Share Amount in effect for the Underlying Stock on the Trading Day immediately prior to the effective date of such Reorganization Event. 

If a Reorganization Event occurs with respect to the shares of the Underlying Stock and the Calculation Agent adjusts the
Share Amount to reflect the Reorganization Property in the event as described above, the Calculation Agent will make further antidilution adjustments for any later events that affect the Reorganization Property, or any component of the
Reorganization Property, comprising the new Share Amount. The Calculation Agent will do so to the same extent that it would make adjustments if the shares of that Underlying Stock were outstanding and were affected by the same kinds of events. If a
subsequent Reorganization Event affects only a particular component of the number of shares of that Underlying Stock, the required adjustment will be made with respect to that component as if it alone were the number of shares of that Underlying
Stock. 
 For purposes of adjustments for Reorganization Events, in the case of a consummated tender or exchange offer or
going-private transaction involving Reorganization Property of a particular type, Reorganization Property will be deemed to include the amount of cash or other property paid by the offeror in the tender or exchange offer with respect to such
Reorganization Property (in an amount determined on the basis of the rate of exchange in such tender or exchange offer or going-private transaction). In the event of a tender or exchange offer or a going-private transaction with respect to
Reorganization Property in which an offeree may elect to receive cash or other property, Reorganization Property will be deemed to include the kind and amount of cash and other property received by offerees who elect to receive cash. 

  
 15 

 Replacement Stock Events 

Following the occurrence of a Replacement Stock Event described in paragraph (b)(2)(ii) above or in “—Delisting of
American Depositary Shares or Termination of American Depositary Receipt Facility” below, the amount of shares of the Underlying Stock or cash, as applicable, payable on this Security on the Stated Maturity Date will be determined by reference
to a Replacement Stock and a Share Amount (subject to any further antidilution adjustments) for such Replacement Stock as determined in accordance with the following paragraphs. 

The “Replacement Stock” will be the stock having the closest “Option Period Volatility” to the
Underlying Stock among the stocks that then comprise the Replacement Stock Selection Index (or, if publication of such index is discontinued, any successor or substitute index selected by the Calculation Agent in its sole discretion) with the same
GICS Code (as defined below) as the Underlying Stock Issuer; provided, however, that a Replacement Stock will not include (i) any stock that is subject to a trading restriction under the trading restriction policies of the Company, the hedging
counterparties of the Company or any of their affiliates that would materially limit the ability of the Company, the hedging counterparties of the Company or any of their affiliates to hedge this Security with respect to such stock or (ii) any
stock for which the aggregate number of shares to be referenced (equal to the product of (a) the Share Amount that would be in effect immediately after selection of such stock as the Replacement Stock and (b) (1) the aggregate Face
Amount of this Security outstanding divided by (2) $50.1954) exceeds 25% of the ADTV (as defined in Rule 100(b) of Regulation M under the Exchange Act) for such stock as of the effective date of the Replacement Stock Event (an
“Excess ADTV Stock”). 
 Each Replacement Stock selected in connection with a Reorganization Event, will be
assigned a Share Amount equal to the number of shares of such Replacement Stock with an aggregate value, based on the Closing Price on the effective date of such Reorganization Event, equal to the product of (a) the value of the Non-Stock
Reorganization Property received per share of Underlying Stock and (b) the Share Amount in effect for the Underlying Stock on the Trading Day immediately prior to the effective date of such Reorganization Event. Each Replacement Stock selected
in connection with an ADS Termination Event (as defined below) will be assigned a Share Amount equal to the number of shares of such Replacement Stock with an aggregate value, based on the Closing Price on the Change Date (as defined below), equal
to the product of (x) the Closing Price of the Underlying Stock on the Change Date and (y) the Share Amount in effect for the Underlying Stock on the Trading Day immediately prior to the Change Date. 

The “Option Period Volatility” means, in respect of any Trading Day, the volatility (calculated by referring
to the Closing Price of the Underlying Stock on its primary exchange) for a period equal to the 125 Trading Days immediately preceding the announcement date of the Reorganization Event, as determined by the Calculation Agent. 

“GICS Code” means the Global Industry Classification Standard (“GICS”) sub-industry code
assigned to the Underlying Stock Issuer; provided, however, if (i) there is no other stock in the Replacement Stock Selection Index in the same GICS sub-industry or (ii) a Replacement Stock (a) for which there is no trading
restriction and (b) that is not an Excess ADTV Stock cannot be identified from the Replacement Stock Selection Index in the same GICS sub-industry, the GICS Code will mean the GICS industry code assigned to the Underlying Stock Issuer. If no
GICS Code 

  
 16 

 
has been assigned to the Underlying Stock Issuer, the applicable GICS Code will be determined by the Calculation Agent to be the GICS sub-industry code assigned to companies in the same
sub-industry (or, subject to the proviso in the preceding sentence, industry, as applicable) as the Underlying Stock Issuer at the time of the relevant Replacement Stock Event. 

The “Replacement Stock Selection Index” means the S&P
500® Index. 
 Delisting of American Depositary Shares or
Termination of American Depositary Receipt Facility. If the Underlying Stock consists of any New Stock or Replacement Stock that is an ADS and the Underlying Stock is no longer listed or admitted to trading on a U.S. securities exchange
registered under the Exchange Act or included in the OTC Bulletin Board Service operated by the FINRA, or if the American depositary receipt facility between the Underlying Stock Issuer and the depositary is terminated for any reason (each, an
“ADS Termination Event”), then, on the last Trading Day on which the Underlying Stock is listed or admitted to trading or the last Trading Day immediately prior to the date of such termination, as applicable (the “Change
Date”), a Replacement Stock Event shall be deemed to occur. 
 Treatment of this Security for U.S. Federal Income Tax Purposes 

The Company agrees, and by acceptance of a beneficial ownership interest in this Security each Holder of this Security will be
deemed to have agreed (in the absence of a statutory, regulatory, administrative or judicial ruling to the contrary), for United States federal income tax purposes to characterize and treat this Security as a short-term contingent debt instrument.

  
  

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by manual signature or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose. 

  
 17 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal. 
 DATED:
                                 

 

					
	WELLS FARGO & COMPANY
		
	By:	 	 
		 	 
		 	Its:	 	 

 [SEAL] 
  

					
	Attest:	 	 
		 	 
		 	Its:	 	 

  

			
	 TRUSTEE’S CERTIFICATE OF

AUTHENTICATION
 This is one of the Securities of the

series designated therein described
 in the within-mentioned Indenture.

	
	 CITIBANK, N.A.,

      as Trustee

		
	By:	 	 
		 	Authorized Signature
	
	OR
	
	 WELLS FARGO BANK, N.A.,

  as Authenticating Agent for the Trustee

		
	By:	 	 
		 	Authorized Signature

  
 18 

 [Reverse of Note] 

WELLS FARGO & COMPANY 

MEDIUM-TERM NOTE, SERIES K 

Due Nine Months or More From Date of Issue 

8% Equity Linked Securities due August 28, 2015 

Linked to the Common Stock of Archer-Daniels-Midland Company 

This Security is one of a duly authorized issue of securities of the Company (herein called the
“Securities”), issued and to be issued in one or more series under an indenture dated as of July 21, 1999, as amended or supplemented from time to time (herein called the “Indenture”), between the Company and
Citibank, N.A., as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is
one of the series of the Securities designated as Medium-Term Notes, Series K, of the Company, which series is limited to an aggregate principal amount or face amount, as applicable, of $25,000,000,000 or the equivalent thereof in one or more
foreign or composite currencies. The amount payable on the Securities of this series may be determined by reference to the performance of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities,
currencies, statistical measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure or may bear interest at a fixed rate or a floating rate. The Securities of this series may
mature at different times, be redeemable at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated in different currencies. 

Article Sixteen of the Indenture shall not apply to this Security. 

This Security is not subject to redemption at the option of the Company or repayment at the option of the Holder hereof prior
to August 28, 2015. This Security will not be entitled to any sinking fund. 
 The Securities are issuable only in
registered form without coupons and will be either (a) book-entry securities represented by one or more Global Securities recorded in the book-entry system
maintained by the Depositary or (b) certificated securities issued to and registered in the names of, the beneficial owners or their nominees. 

The Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious
rates of interest against a Holder of this Security. 

  
 19 

 Modification and Waivers 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights
and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the
Securities at the time Outstanding of all series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities of all series at the time Outstanding
affected by certain provisions of the Indenture, acting together as a class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain past defaults under the
Indenture and their consequences may be waived under the Indenture by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series. Solely for the
purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in the requisite aggregate
principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof as the “Face Amount” hereof. Any such consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security. 
 Defeasance 

Section 403 and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the
Indenture, relating to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants and certain Events of Default, upon compliance by the Company with certain conditions set forth therein,
shall not apply to this Security. The remaining provisions of Section 401 of the Indenture shall apply to this Security. 
 Authorized
Denominations 
 This Security is issuable only in registered form without coupons in denominations of $50.1954 or
any amount in excess thereof which is an integral multiple of $50.1954. 
 Registration of Transfer 

Upon due presentment for registration of transfer of this Security at the office or agency of the Company in the City of
Minneapolis, Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the
Indenture and subject to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental charge imposed in connection therewith. 

This Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the
Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not
appointed within 

  
 20 

 
90 days after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that this Security shall be exchangeable for
definitive Securities in registered form and notifies the Trustee thereof or (z) an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable pursuant to the preceding
sentence, it shall be exchangeable for definitive Securities in registered form, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating a like amount. 

This Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global
Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under the Indenture. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 
 Obligation of the Company Absolute 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to make the payments on this Security at the times, place and rate, and in the coin or currency or shares of Underlying Stock, as the case may be, herein prescribed, except as otherwise provided
in this Security. 
 No Personal Recourse 

No recourse shall be had for the payment of amounts payable on this Security, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and
released. 
 Defined Terms 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture
unless otherwise defined in this Security. 
 Governing Law 

This Security shall be governed by and construed in accordance with the law of the State of New York, without regard to
principles of conflicts of laws. 

  
 21 

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they
were written out in full according to applicable laws or regulations: 
  

					
	 TEN COM
	 	  -- 
	 	 as tenants in common

			
	 TEN ENT
	 	  -- 
	 	 as tenants by the entireties

			
	 JT TEN
	 	  -- 
	 	 as joint tenants with right

of survivorship and not
 as
tenants in common

  

									
	 UNIF GIFT MIN ACT
	 	  -- 
	 	 	 	 Custodian
	 	 
		 		 	(Cust)	 		 	(Minor)

  

	
	Under Uniform Gifts to Minors Act
	   

	(State)

 Additional abbreviations may also be used though not in the above list. 

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto 

 

			
	Please Insert Social Security or	 	
	Other Identifying Number of Assignee
	   
	 	  

  
  

 
  
  

 
 (PLEASE
PRINT OR TYPE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE)

  
 22 

 the within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute and
appoint __________________ attorney to transfer the said Security on the books of the Company, with full power of substitution in the premises. 
 Dated:
                                         
        
  

	
	   

  

	
	   

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the
within instrument in every particular, without alteration or enlargement or any change whatever. 

  
 23

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