EXHIBIT 10.1

PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS

by and between

OASIS APARTMENTS, LLC,
a Colorado limited liability company

(“Seller”)

and

STEADFAST ASSET HOLDINGS, INC.,
a California corporation

(“Buyer”)

012762\0087\11507821.11

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TABLE OF CONTENTS

 
 
 
 
Page No.

 
 
 
 
 
 
 
1.
PURCHASE AND SALE
1

 
1.1
 
Property
1

 
1.2
 
No Warranty
3

 
 
 
 
 
2.
PURCHASE PRICE
4

 
 
 
 
 
3.
PAYMENT OF PURCHASE PRICE
4

 
3.1
 
Deposit
4

 
3.2
 
Remainder of Purchase Price
5

 
3.3
 
Buyer Default; Liquidated Damages
5

 
3.4
 
Seller Default; Specific Performance
6

 
 
 
 
 
4.
ESCROW INSTRUCTIONS
7

 
4.1
 
Opening of Escrow
7

 
4.2
 
Conditions to Close
7

 
4.3
 
Recordation and Transfer
8

 
 
 
 
 
5.
CLOSING
8

 
5.1
 
Generally
8

 
5.2
 
Intentionally Omitted
9

 
 
 
 
 
6.
BUYER'S REVIEW
9

 
6.1
 
Delivery of Documents
9

 
6.2
 
Access
9

 
6.3
 
Title and Survey
10

 
6.4
 
Buyer's Due Diligence
11

 
6.5
 
Buyer's Termination Right
12

 
6.6
 
Contracts
13

 
 
 
 
 
7.
REPRESENTATIONS AND WARRANTIES
13

 
7.1
 
Seller's Representations and Warranties
13

 
7.2
 
Buyer's Representations and Warranties
16

 
 
 
 
 
8.
COVENANTS
17

 
8.1
 
Seller
17

 
8.2
 
Buyer
20

 
8.3
 
Roofs
20

 
 
 
 
 
9.
ADJUSTMENTS AND PRORATIONS
20

 
9.1
 
Generally
20

 
9.2
 
Rental Income
21

 
9.3
 
RUBS
21

 
9.4
 
Proration Period
21

 
9.5
 
Rent Ready Adjustments
22

 
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10.
CLOSING DOCUMENTS
22

 
10.1
 
Seller's Deliveries
22

 
10.2
 
Buyer's Deliveries
23

 
10.3
 
Other Closing Documents
23

 
10.4
 
Closing Documents
23

 
10.5
 
Possession
23

 
 
 
 
 
11.
COSTS
23

 
 
 
 
 
12.
CASUALTY OR CONDEMNATION
24

 
 
 
 
 
13.
ATTORNEYS' FEES
25

 
 
 
 
 
14.
ASSIGNMENT
25

 
 
 
 
 
15.
WAIVER
25

 
 
 
 
 
16.
GOVERNING LAW
25

 
 
 
 
 
17.
NOTICES
25

 
 
 
 
 
18.
ENTIRE AGREEMENT
26

 
 
 
 
 
19.
COUNTERPARTS; COPIES
27

 
 
 
 
 
20.
AUTHORITY
27

 
 
 
 
 
21.
RECORD ACCESS AND RETENTION
27

 
 
 
 
 
 
 
22.
CONTRACT CONSIDERATION
27

 
 
 
 
 
 
 
23.
JURY TRIAL WAIVER
28

 
 
 
 
 
 
 
24.
COUNSEL
28

 
 
 
 
 
 
 
25.
EQUAL PARTICIPATION
28

 
 
 
 
 
 
 
26.
TAX-FREE EXCHANGE
28

 
 
 
 
 
 
 
27.
WAIVER OF CONSEQUENTIAL DAMAGES
29

 
 
 
 
 
 
 
28.
CONFIDENTIALITY
29

 
 
 
29.
NO RECORDING
30

 
 
 
 
 
 
 
30.
SEVERABILITY
30

 
 
 
 
 
 
 
31.
NON-SOLICITATION OF EMPLOYEES
30

 
 
 
 
 
 
 
32.
SURVIVAL
30

 
 
 
 
 
 
 
33.
DISCLOSURES
30

 
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EXHIBITS
Exhibit “A”
Real Property Description
Exhibit “B”
Personal Property Description
Exhibit “C”
Due Diligence Documents
Exhibit “D”
Form of Deed
Exhibit “E”
Form of General Assignment
Exhibit “F”
Form of Bill of Sale
Exhibit “G”
Form of Non-Foreign Certificate
Exhibit “H”
Form of Tenant Notice
Exhibit “I”
Disclosures

SCHEDULES
Schedule 1
Leases
Schedule 2
Contracts
 
 

 
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PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS

This PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is
made and entered into as of the 9th day of September, 2014, by and between OASIS
APARTMENTS, LLC, a Colorado limited liability company (“Seller”), and STEADFAST
ASSET HOLDINGS, INC., a California corporation (“Buyer”), with reference to the
following facts:
RECITALS:
A.Seller is the fee owner of that certain land with a multi-family residential
project commonly known as The Oasis Apartments, consisting of 252 units, located
at 1495 Farnham Point, Colorado Springs, CO 80904 and more particularly
described in Exhibit “A” attached hereto, together with all structures and
improvements affixed or attached to such land (collectively referred to herein
as the “Real Property”).
B.Seller desires to sell the Real Property, along with certain related personal
and intangible property, to Buyer, and Buyer desires to purchase such Real
Property and related personal and intangible property from Seller in accordance
with the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth,
the parties hereto mutually agree as follows:
1.PURCHASE AND SALE.
1.1    Property. Subject to the terms and conditions of this Agreement, and for
the consideration herein set forth, Seller agrees to sell and transfer, and
Buyer agrees to purchase and acquire, all of Seller’s right, title, and
interest, if any, in and to the following (collectively, the “Property”):
1.1.1    The Real Property;
1.1.2    All easements, licenses, interests, rights, privileges, tenements,
hereditaments and appurtenances on or in any way appertaining to the Real
Property, including, without limitation, all water and water rights;
1.1.3    All equipment, tools, machinery, materials, furniture, furnishings,
supplies and other tangible personal property owned by Seller and located on or
used in connection with or arising out of the ownership, management or operation
of the Real Property (collectively, “Personal Property”); the Personal Property
owned by Seller as of the date hereof is identified on Exhibit “B” attached
hereto;

 
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1.1.4    All leases and occupancy agreements relating to the Property in effect
on the Date of Closing (as hereinafter defined), including all amendments
thereto (collectively, “Leases”); the Leases in effect on the date of this
Agreement are identified on the rent roll attached hereto as Schedule 1 (the
“Rent Roll”);
1.1.5    Subject to Section 6.6 below, all service, maintenance, supply or other
contracts relating to the leasing, advertising, management, operation,
maintenance or repair of the Property (including without limitation all
warranties and guarantees thereunder), but not including (a) any national or
multi-property contracts entered into by Seller, its affiliates, or its property
manager with respect to the Property; (b) any contracts which terminate
automatically upon transfer of the Property by Seller; or (c) any cellular phone
contract or property management contract for the Property (collectively,
“Contracts”), which Contracts in effect as of the date of this Agreement are
identified on Schedule 2 attached hereto;
1.1.6    All licenses, permits, certificates of occupancy and governmental
approvals relating to the Property (collectively, “Approvals”) and any plans,
specifications, studies, reports or surveys relating to the Real Property and
transferable construction warranties, to the extent assignable without consent
or payment of any kind and directly related to the Real Property, the Personal
Property or the Intangible Property (provided, however, that upon request of
Buyer as to specific Approvals that Buyer has identified as requiring consent
for transfer, Seller shall, at no unaffiliated third party cost to Seller,
reasonably cooperate with Buyer upon request, both before and after the Close of
Escrow, to obtain any consents as necessary to assign such Approvals to Buyer);
and
1.1.7    All entitlements and intangible personal property in connection with or
arising out of the design, construction, ownership, occupancy, use, management,
operation, maintenance, repair or ownership of the Real Property, to the extent
assignable without consent or payment of any kind and directly related to the
Real Property (excluding, however: (a) receivables attributable to periods prior
to the Closing Date; (b) cash or other funds, whether in petty cash or house
“banks,” or on deposit in bank accounts or in transit for deposit; (c) refunds,
rebates or other claims, or any interest thereon, for periods or events
occurring prior to the Closing Date; (d) utility and similar deposits; (e)
insurance; (f) Seller’s proprietary books and records; and (g) any right, title
or interest in or to the Griffis Marks, as defined below) and including, without
limitation, trade names (including “The Oasis Apartments” or derivatives
thereof), websites (but not the content of any website maintained by Seller or
its affiliates), web domains and internet addresses, all phone number(s) for the
Real Property, all fax number(s) for the Real Property and logos all as they
relate solely to use in connection with the Real Property and not with respect
to any other property owned or managed by Seller, its property manager, or their
respective affiliates (collectively, the “Intangible Property”); (provided,
however, that upon request of Buyer as to specific Intangible Property that
Buyer has identified as requiring consent for transfer, Seller shall, at no
unaffiliated third party cost to Seller, reasonably cooperate with Buyer upon
request, both before and after the Close of Escrow, to obtain any consents
necessary to assign such Intangible Property to Buyer, subject to the following
sentences in this Section 1.1.7). Notwithstanding anything to the contrary set
forth herein, Buyer agrees that no right, title or interest in or to the
trademarks and service marks (including words, phrases, slogans and logos),
proprietary materials, copyright-protected materials,

 
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proprietary software and systems, trade secrets, proprietary information and
lists, owned or used by Seller, its property manager, or their respective
affiliates in the marketing, operation or use of the Property, or in the
marketing, operation or use of any other properties managed by Seller, its
property manager, or their respective affiliates (collectively, the “Griffis
Marks”) is granted, transferred, assigned or conveyed as a result of this
Agreement, including without limitation the web address
http://theoasisbygriffis.com. Buyer further agrees that, with respect to the web
address http://theoasisbygriffis.com and any content of such website containing
the Griffis Marks, the names “Griffis,” “Griffis Residential” and “Griffis
Residential,” any Griffis logos and any signs or materials bearing the same, and
from and after receipt in writing from Seller identifying with specificity any
other such Griffis Marks, Buyer will not use such Griffis Marks for any purpose,
which covenant shall survive the Closing or earlier termination of this
Agreement; provided however that at Buyer’s option, Buyer may either banner over
or otherwise de-identify anything at the Property containing any Griffis Marks
or require that Seller remove any Griffis Marks from the Property at Closing.
Included in the Property shall be any and all the foregoing items in which any
affiliate of Seller has any right, title or interest, to the extent the same is
used solely in connection with the Real Property unless otherwise expressly
agreed to by Buyer; it being understood and agreed that Seller shall cause such
affiliate to convey the same to Buyer at Closing.
1.2    No Warranty. Subject to the representations, warranties and covenants of
Seller set forth in this Agreement, Seller is selling and Buyer is purchasing
the Property “AS IS WHERE IS” with all faults. The Purchase Price and the terms
and conditions set forth in this Agreement are the result of arm’s-length
bargaining between entities familiar with transactions of this kind, and said
price, terms and conditions reflect the fact that Buyer shall have the benefit
of, but, except for the representations, warranties, covenants and agreements of
Seller specifically set forth in this Agreement or any document delivered by
Seller at Closing, is not relying upon any information provided by Seller or
Broker (as defined below) or statements, representations or warranties, express
or implied, made by or enforceable directly against Seller or Broker, including,
without limitation, any relating to the value of the Property, the physical or
environmental condition of the Property, any state, federal, county or local
law, ordinance, order or permit, or the suitability, compliance or lack of
compliance of the Property with any regulation, or any other attribute or matter
of or relating to the Property. Buyer agrees that, except as otherwise provided
in this Agreement or any document delivered by Seller at Closing, Seller shall
not be responsible or liable to Buyer for any defects, errors or omissions in
the Seller Deliveries, or on account of any conditions affecting the Property.
Upon Closing, Buyer, on its own behalf and on behalf of its successors and
assigns, and anyone claiming by, through or under Buyer, hereby fully releases
Seller’s Indemnified Parties (as defined below) from, and irrevocably waives its
right to maintain, any and all claims and causes of action that it or they may
now have or hereafter acquire against Seller’s Indemnified Parties with respect
to any and all Losses (as defined below) arising from or related to any defects,
errors, omissions in the Seller Deliveries or other conditions affecting the
Property except as otherwise provided in this Agreement or any document
delivered by Seller at Closing. Buyer acknowledges that, provided Seller
complies with its obligations under this Agreement, Buyer will have sufficient
opportunity prior to Closing to review and conduct such independent analyses,
studies (including, without limitation, environmental studies and analyses
concerning the presence of lead, asbestos, water intrusion and/or fungal growth
and any resulting damage, PCBs and radon

 
3
 

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in and about the Property if such studies are consented to by Seller upon
request by Buyer therefor or otherwise permitted under Section 6.2 below),
reports, investigations and inspections as it deems appropriate in connection
with the Property. If Seller provides or has provided any documents, summaries,
opinions or work product of consultants, surveyors, architects, engineers, title
companies, governmental authorities or any other person or entity with respect
to the Property, including, without limitation, the offering prepared by Broker,
Buyer and Seller agree that (i) Seller has done so or shall do so only for the
convenience of both parties or as required under this Agreement, (ii) except to
the extent of representations or warranties specifically set forth in this
Agreement or any document delivered by Seller at Closing Buyer shall not rely
thereon, and (iii) the reliance by Buyer upon any such documents, summaries,
opinions or work product shall not create or give rise to any liability of or
against Seller’s Indemnified Parties except as otherwise expressly provided in
this Agreement or any document delivered by Seller at Closing. Buyer
acknowledges and agrees that, except as specifically set forth in this Agreement
or any document delivered by Seller at Closing, no representation has been made
and no responsibility is assumed by Seller with respect to current and future
applicable zoning or building code requirements or the compliance of the
Property with any other laws, rules, ordinances or regulations, the financial
earning capacity or expense history of the Property, the continuation of
contracts, continued occupancy levels of the Property, or any part thereof, or
the continued occupancy by tenants of any Leases or, without limiting any of the
foregoing, occupancy at Closing.
2.    PURCHASE PRICE.
The total purchase price (“Purchase Price”) to be paid by Buyer to Seller for
the Property shall be FORTY MILLION AND 00/100 DOLLARS ($40,000,000.00), payable
all in cash.
3.    PAYMENT OF PURCHASE PRICE.
The Purchase Price shall be paid as follows:
3.1    Deposit. As part of the Opening of Escrow (as defined below), Buyer shall
deliver to Fidelity National Title Insurance Company (“Escrow Holder”), which
has an address of 1300 Dove Street, Suite 310, Newport Beach, CA 92660, Attn:
Karen Robertson, the sum of FOUR HUNDRED THOUSAND AND 00/100 DOLLARS
($400,000.00) (“Initial Deposit”) in immediately available funds as a good faith
deposit. Escrow Holder shall use as their local title office Fidelity National
Title Insurance Company at 4643 South Ulster Street, Suite 500, Denver, CO
80237, Attn: Darren W. Hone, and any Closing document deliveries to be made by
the parties may be placed into escrow with such office. Within two (2) Business
Days following expiration of the Due Diligence Period (as defined below), Buyer
shall deliver to Escrow Holder the sum of FOUR HUNDRED THOUSAND AND 00/100
DOLLARS ($400,000.00) (“Additional Deposit”) in immediately available funds as
an additional good faith deposit. The Initial Deposit, the Additional Deposit,
if any, and all interest earned on any of the foregoing, shall be collectively
referred to in this Agreement as the “Deposit”. Escrow Holder shall place the
Deposit in one or more government insured interest-bearing accounts satisfactory
to Seller and Buyer (which shall have no penalty for early withdrawal) and shall
not commingle the Deposit with any funds of Escrow Holder or any other person or
entity. If Closing occurs in accordance with this Agreement, the Deposit shall
be

 
4
 

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applied against the Purchase Price. The Deposit shall be returned to Buyer if
(y) Buyer elects to terminate this Agreement in accordance with Section 6.5 or
Section 12 below or (z) Escrow fails to close due to (i) Seller’s breach of this
Agreement, or (ii) the failure of a condition to close under Section 4.2 (other
than a failure of Buyer to deliver funds or instruments under Section 4.2.2 or a
breach by Buyer under Section 4.2.4). In the event of a termination of this
Agreement by either Seller or Buyer for any reason other than pursuant to
Section 6.5, Escrow Holder is authorized to deliver the Deposit to the party
hereto entitled to same pursuant to the terms hereof on or before the tenth
(10th) Business Day following receipt by Escrow Holder and the non-terminating
party of written notice of such termination from the terminating party, unless
the other party hereto notifies Escrow Holder that it disputes the right of the
other party to receive the Deposit. In such event, Escrow Holder may either
disburse the Deposit in accordance with a jointly executed instruction letter
from Seller and Buyer or, if no such instruction letter is received within ten
(10) Business Days after the Escrow Holder’s receipt of the original letter
identifying the dispute, interplead the Deposit into a court of competent
jurisdiction in the county in which the Deposit has been deposited. All
attorneys’ fees and costs and Escrow Holder’s costs and expenses incurred in
connection with such interpleader shall be assessed against the party that is
not awarded the Deposit, or if the Deposit is distributed in part to both
parties, then in the inverse proportion of such distribution. As used in this
Agreement, “Business Day” means any day other than a Saturday or Sunday or a
legal holiday on which commercial banks are authorized or required to be closed
for business in the State of California or Colorado. Escrow Holder, as the
person responsible for closing the transaction within the meaning of Section
6045(e)(2)(A) of the Internal Revenue Code of 1986, as amended (the “Code”),
shall file all necessary information, reports, returns, and statements regarding
the transaction required by the Code including, but not limited to, the tax
reports required pursuant to Section 6045 of the Code.
3.2    Remainder of Purchase Price. On or before 1:00 p.m. Mountain Time on the
Closing Date, Buyer shall deposit into Escrow immediately available funds in an
amount which, when added to the Deposit, will equal the Purchase Price plus any
additional amounts necessary to cover costs and/or prorations under this
Agreement. If Buyer’s funds are not paid to and received by Escrow Agent by this
deadline and, despite the good faith attempts by Seller and Escrow Agent to
cause Seller’s existing mortgage lender to accept repayment of its loan without
an additional day’s interest, Buyer shall be responsible to pay such one
additional day’s interest on Seller’s existing mortgage loan, unless the parties
mutually agree to delay the Closing Date by one (1) Business Day.

 
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3.3    Buyer Default; Liquidated Damages. If Buyer fails to consummate the
purchase of the Property pursuant to this Agreement or otherwise materially
defaults on its obligations hereunder at or prior to Closing for any reason
except failure by Seller to perform hereunder, and such default or breach is not
cured by the earlier of the third (3rd) Business Day after written notice
thereof from Seller or the Closing Date (except no notice or cure period shall
apply if Buyer fails to deliver the purchase price or other documents and
authorizations necessary to consummate the sale of the Property hereunder),
Seller shall have the right, as its sole and exclusive remedy (except with
respect to any indemnities or obligations that survive termination as expressly
set forth herein), to terminate this Agreement upon delivery of written notice
thereof to Buyer, in which event: THE PORTION OF THE DEPOSIT THEN DEPOSITED WITH
ESCROW HOLDER PURSUANT TO THIS AGREEMENT SHALL BE PAID TO SELLER UPON
TERMINATION OF THIS AGREEMENT AND RETAINED BY SELLER AS LIQUIDATED DAMAGES AND
AS SELLER’S SOLE REMEDY AT LAW OR IN EQUITY. SELLER AND BUYER AGREE THAT, UNDER
THE CIRCUMSTANCES EXISTING AS OF THE DATE OF THIS AGREEMENT, ACTUAL DAMAGES MAY
BE DIFFICULT TO ASCERTAIN AND THE PORTION OF THE DEPOSIT THEN DEPOSITED WITH
ESCROW HOLDER PURSUANT TO THIS AGREEMENT IS A REASONABLE ESTIMATE OF THE DAMAGES
THAT WILL BE INCURRED BY SELLER IF BUYER MATERIALLY DEFAULTS UNDER OR MATERIALLY
BREACHES THIS AGREEMENT (EXCEPT WITH RESPECT TO ANY INDEMNITIES OR OBLIGATIONS
THAT SURVIVE TERMINATION AS EXPRESSLY SET FORTH HEREIN).
3.4    Seller Default; Specific Performance. If Seller fails to consummate the
sale of the Property pursuant to this Agreement or otherwise materially defaults
on its obligations hereunder at or prior to Closing for any reason except
failure by Buyer to perform hereunder, or if any of Seller’s representations or
warranties (x) was untrue or incorrect in any material respect as of the
Effective Date or (y) will be untrue or incorrect in any material respect when
remade as of the Closing Date as a result of a material default by Seller of any
of its obligations under this Agreement, and such default or breach is not cured
by the earlier of the third (3rd) Business Day after written notice thereof from
Buyer or the Closing Date (except no notice or cure period shall apply if Seller
fails to consummate the sale of the Property hereunder), Buyer may, as its sole
and exclusive remedy (except with respect to any indemnities or obligations that
survive termination as expressly set forth herein): (a) terminate this Agreement
by giving Seller timely written notice of such termination prior to or at
Closing and recover the Deposit and any and all Buyer’s Costs (as hereinafter
defined) incurred as of the date of such termination, (b) enforce specific
performance to consummate the sale of the Property hereunder, or (c) waive said
failure or breach and proceed to Closing without any reduction in the Purchase
Price. Notwithstanding anything herein to the contrary, Buyer shall be deemed to
have elected to terminate this Agreement if Buyer fails to deliver to Seller
written notice of its intent to file a claim or assert a cause of action for
specific performance against Seller on or before ten (10) Business Days
following the Outside Closing Date or, having given such notice, fails to file a
lawsuit asserting such claim or cause of action in the county in which the
Property is located within two months following the Outside Closing Date.
Buyer’s remedies shall be limited to those described in this Section 3.4 and
Section 13. If, however, the equitable remedy of specific performance is not
available, Buyer may seek to recover Buyer’s Costs

 
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and any amounts payable under Section 13. For purposes of this Agreement,
“Buyer’s Costs” shall mean the actual expenses incurred by Buyer and paid (A) to
Buyer’s attorneys (including in-house attorneys) in connection with the
negotiation of this Agreement or the proposed purchase of the Property, (B) to
third party consultants in connection with the performance of examinations,
inspections and/or investigations pursuant to Section 6 and (C) to any potential
lender in connection with any proposed financing of the Property, as evidenced
by reasonable backup documentation provided to Seller, in an amount not to
exceed $75,000 PLUS, solely in the event of Seller’s Intentional Default (as
hereinafter defined) within five (5) business days prior to Closing, all
non-refundable rate lock or spread lock fees actually paid to Buyer’s proposed
lender (which shall be paid not earlier than five (5) days prior to Closing and
which shall not exceed 2% of the loan amount). For purposes of this Agreement,
“Intentional Default” means any one or more of the following: (A) fraudulent
misrepresentation, (B) criminal conduct (i.e. conduct that constitutes a felony
under applicable law), or (C) an intentional or deliberate act of (x) Seller,
(y) any affiliate or agent of Seller, or (z) any other party, at the request or
direction of, or in collusion with, Seller, in each case of clauses (x), (y) or
(z) above to the extent that the same results in Buyer’s inability to consummate
the transaction contemplated in this Agreement in accordance with the terms
hereof.
4.    ESCROW INSTRUCTIONS.
4.1    Opening of Escrow. Within three (3) Business Days after the mutual
execution and delivery of this Agreement, the parties shall open an escrow
(“Escrow”) with Escrow Holder in order to consummate the purchase and sale in
accordance with the terms and provisions hereof by (i) Buyer delivering to
Escrow Holder the Initial Deposit and (ii) Buyer and Seller delivering to Escrow
Holder their respective executed counterparts of this Agreement (collectively,
the “Opening of Escrow”). Escrow Holder shall deliver written confirmation of
the date of the Opening of Escrow to the parties in the manner set forth in
Section 17 of this Agreement. This Agreement shall be countersigned by Escrow
Holder and the provisions hereof shall constitute joint primary escrow
instructions to Escrow Holder; provided, however, that the parties shall execute
such additional instructions as reasonably requested by Escrow Holder not
inconsistent with the provisions hereof.
4.2    Conditions to Close. Escrow shall not close unless and until the
following conditions precedent and contingencies have been satisfied or waived
in writing by the party for whose benefit the conditions have been included
(provided, however, each party is deemed to have waived any condition precedent
or contingency that is not satisfied as a result of its own default under this
Agreement or that relates to its own representations and warranties):
4.2.1    All contingencies described in Section 6 below have either been
satisfied or waived in writing by Buyer. Notwithstanding the foregoing, such
contingencies shall be deemed to have been satisfied or waived in writing by
Buyer if Buyer does not timely elect to terminate this Agreement prior to
expiration of the Due Diligence Period pursuant to Section 6.4 subject only to
New Title Matters, which shall be governed by the terms of Section 6.3.
4.2.2    All funds and instruments described in Sections 3 and 10 have been
delivered to Escrow Holder.

 
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4.2.3    The title department of Escrow Holder to have irrevocably committed to
Buyer in writing to issue an ALTA 2006 extended owner’s policy of title
insurance, in form and content acceptable to Buyer in its sole and absolute
discretion, insuring Buyer’s fee simple title to the Real Property in an amount
equal to the Purchase Price subject only to the Permitted Exceptions (as
hereinafter defined) and subject to no conditions other than payment of the
applicable premium therefor and other conditions acceptable to Buyer in its sole
and absolute discretion. Notwithstanding the foregoing, such contingencies shall
be deemed to have been satisfied or waived in writing by Buyer if Buyer does not
timely elect to terminate this Agreement prior to expiration of the Due
Diligence Period pursuant to Section 6.4, subject only to New Title Matters,
which shall be governed by the terms of Section 6.3.
4.2.4    Seller and Buyer shall each have materially performed, observed and
complied with all covenants, agreements and conditions required by this
Agreement to be performed, observed and/or complied with by such party prior to,
or as of, the Closing.
4.2.5    Buyer’s and Seller’s representations and warranties contained herein
shall be true and correct in all material respects as of the date hereof and as
of the Closing Date, except for representations and warranties made as of, or
limited by, a specific date, which will be true and correct in all material
respects as of the specified date or as limited by the specified date.
4.2.6    There shall exist no pending or threatened (in writing) actions, suits,
arbitrations, claims, attachments, proceedings, assignments for the benefit of
creditors, insolvency, bankruptcy, reorganization or other proceedings, against
the other party that would materially and adversely affect that party’s ability
to perform its material obligations under this Agreement.
4.3    Recordation and Transfer. Upon satisfaction of the conditions set forth
in Section 4.2 above, Escrow Holder shall transfer the Property as follows:
4.3.1    Cause the Deed (as such term is hereinafter defined) to be recorded
with the Office of the Clerk and Recorder of El Paso County, Colorado;
4.3.2    Deliver to the parties entitled thereto the other Closing Documents (as
hereinafter defined); and
4.3.3    Disburse all funds deposited with Escrow Holder by Buyer to (i) Seller
in payment of the Purchase Price for the Property (subject to applicable
prorations and adjustments as provided herein) by wire transfer pursuant to
instructions to be delivered by Seller to Escrow Holder, (ii) for closing costs,
to the party entitled thereto, all as set forth in Buyer’s settlement statement,
and (iii) any remainder to Buyer.

 
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5.    CLOSING.
5.1    Generally. Escrow shall close upon the recordation of the Deed (or if the
parties have agreed to close on the basis of gap coverage from the Escrow
Holder, then at such time as the Escrow Holder is otherwise prepared to record
the Deed and all the conditions associated with the recording of the Deed have
been satisfied) in accordance with the provisions of this Agreement (“Date of
Closing”, “Closing Date”, “Closing” or “Close of Escrow”). The Close of Escrow
shall occur on December 19, 2014 (“Outside Closing Date”) through an escrow with
Escrow Holder whereby the parties need not be physically present and may deliver
closing documents by overnight courier or other means, unless otherwise extended
(i) by operation of Sections 6.3 or 12 below, (ii) [intentionally omitted], or
(iii) by written agreement between Buyer and Seller. Notwithstanding the
foregoing, Buyer may elect to close on November 24, 2014; provided, however,
Buyer must deliver written notice to Seller of such acceleration of the Closing
Date no later than November 3, 2014.
5.2    Intentionally Omitted.
6.    BUYER’S REVIEW.
6.1    Delivery of Documents. Within three (3) days after the Opening of Escrow,
Seller shall, at the sole expense of Seller, deliver to Buyer (in electronic
format to the extent feasible) copies of all documents pertaining to the
Property that are in the possession or control of Seller, only if and to the
extent listed on Exhibit “C” attached hereto, and thereafter from time to time
shall provide, promptly after written request therefor, such other items as are
reasonably requested from time to time by Buyer and are customarily provided in
similar transactions and in the possession or control of Seller, but in all
instances excluding any attorney-client privileged materials or work product
information, any appraisals or other proprietary information, including any
memoranda, compilations, analysis, or other communications created by Seller for
its own internal or confidential purposes (collectively, the “Seller
Deliveries”). Seller hereby acknowledges and agrees that the following are in
the possession of or control of, or are reasonably available to, Seller and will
be provided as required in the previous sentence: monthly operating statements
(year-to-date and 3-year historical); year-end financial statements, audited if
available (past 3 years); general ledger (year-to-date and 3-year historical);
and copies of all Leases. Notwithstanding the foregoing, the Leases and tenant
files will not be delivered to Buyer, but may be reviewed and copied by Buyer at
the property management office located at the Property, provided that upon
Buyer’s request, Seller shall deliver to Buyer a sample set of no less than
twenty percent (20%) of the Leases. Except as specifically set forth in this
Agreement or any document executed by Seller at Closing, Seller makes no
representations or warranties, express, written, oral, statutory or implied with
respect to the Seller Deliveries or the Property, and all such representations
and warranties are hereby expressly excluded and disclaimed. All Seller
Deliveries or other information provided by Seller to Buyer are for
informational purposes only, and Buyer shall not in any way be entitled to rely
upon the completeness or accuracy of such materials and information, except as
specifically set forth in this Agreement or any document executed by Seller at
Closing, and will instead rely on its own inspections with respect to all
matters it deems relevant to its decision to acquire, own and operate the
Property. Upon any termination of this Agreement and the payment by Seller to
Buyer of Buyer’s

 
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actual costs therefor to the extent required by the terms and conditions of this
Agreement, to the extent Buyer is legally entitled to do so, Buyer shall provide
Seller, without representation or warranty of any kind and without any right of
reliance thereon, with copies of any reports or studies prepared for Buyer by
any unaffiliated third party in connection with Buyer’s investigation of the
Property, excluding any attorney-client privileged materials or work product
information, any appraisals or other proprietary information, including any
memoranda, compilations, analysis, or other communications created by Buyer for
its own internal or confidential purposes.
6.2    Access. Commencing upon the execution of this Agreement by Buyer and
Seller, Seller shall permit (or cause to be permitted) Buyer or Buyer’s agents,
employees, contractors, lenders and representatives access to the Property for
purposes of any non-intrusive physical or environmental test, study or
inspection of the Property and, to the extent copies are not provided to Buyer
by Seller pursuant to Section 6.1, review and copying of Seller’s books and
records relating to any of the documents described in Section 6.1 above at
Buyer’s sole expense, and other matters necessary in the discretion of Buyer to
evaluate and analyze the feasibility of the Property for Buyer’s intended use
thereof. Buyer shall use commercially reasonable efforts to not unreasonably
disrupt Seller’s tenants. Buyer shall not conduct or authorize any physically
intrusive testing of, on, or under the Property without first obtaining Seller’s
consent (which may be via electronic mail, but without requirement for
concurrent overnight delivery) as to the timing and scope of work to be
performed, which consent shall not be unreasonably withheld, conditioned or
delayed (and without limiting the foregoing, for purposes hereof tests for
asbestos-containing materials or lead-based paint, but not radon, shall be
deemed to be intrusive). Seller hereby acknowledges and agrees that Buyer or
Buyer’s representatives may communicate with any governmental authority or
quasi-governmental authority for the purpose of gathering information in
connection with the Property or the Seller, or the transaction contemplated by
this Agreement. At least 48 hours prior to any entry Buyer shall notify (which
may be via electronic mail, but without requirement for concurrent overnight
delivery) Seller of Buyer’s proposed activities and Seller shall have the right
to have a representative of Seller present during any entry onto the Property by
Buyer. Buyer shall not contact any tenant of the Property without the prior
written approval of Seller. In the event that Seller does consent to Buyer’s
contact with any tenant of the Property, Seller shall have the right to have a
representative of Seller present during any such interview. Prior to any entry
onto the Property, Buyer shall provide Seller with evidence that Buyer maintains
reasonable worker’s compensation insurance in accordance with applicable law and
comprehensive liability insurance with coverage in an amount not less than
$1,000,000, combined single limit, for personal injury, including bodily injury
and death, and property damage (whether arising out of the acts of Buyer or
Buyer’s agents, employees, contractors, lenders and representatives, or else
Buyer shall provide evidence that any such agent, employee, contractor, lender
or representative carries the insurance otherwise required by Buyer hereunder).
Such insurance shall name Seller and Seller’s property manager as additional
insured parties and shall be with companies authorized to issue insurance in the
state in which the Real Property is located.

 
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6.3    Title and Survey.
6.3.1    On or prior to the Effective Date, Seller shall request that Escrow
Holder promptly issue to Buyer a current commitment for an owner’s policy of
title insurance in the amount of the Purchase Price on an ALTA 2006 form
together with copies of all documents of record referenced therein
(collectively, the “Title Commitment”) at Seller’s sole cost and expense (as
provided in Section 11 below). Buyer shall have twenty-five (25) days following
its receipt of the Title Commitment and any survey provided to Buyer by Seller
pursuant to Section 6.3.2 below but in no event later than the expiration of the
Due Diligence Period (“Title Objection Period”) in which to notify Seller in
writing of any objections Buyer has, in Buyer’s sole and absolute discretion, to
any matters shown on the Title Commitment (“Title Objection Notice”). All
objections raised by Buyer in the manner herein provided are hereafter called
“Objections.” Subject to the limitations set forth in the penultimate sentence
of this Section 6.3.1, Seller shall make reasonable efforts to remedy or remove
all Objections (or agree irrevocably in writing to remedy or remove all such
Objections at or prior to Closing) within five (5) days following Buyer’s
delivery of the Title Objection Notice (“Seller’s Cure Period”). In the event
Seller is unable or does not elect to remedy or cause the removal of any
Objections (or agree irrevocably to do so at or prior to Closing) within
Seller’s Cure Period, then Buyer, within five (5) days after the expiration of
Seller’s Cure Period or earlier receipt of a response from Seller (“Buyer’s
Termination Period”), shall deliver to Seller written notice electing, in
Buyer’s sole and absolute discretion as its sole and exclusive remedy, to either
(i) terminate this Agreement, or (ii) unconditionally waive any such Objections,
failing which Buyer shall conclusively be deemed to have elected (i) above. Any
new title information received by Seller or Buyer after the expiration of the
Title Objection Period, Seller’s Cure Period or Buyer’s Termination Period, as
applicable, from a supplemental title report, update to the Title Commitment or
other source which is not the result of the acts or omissions of Buyer or its
agents, contractors, lenders, employees, representatives or invitees (each, a
“New Title Matter”) shall be subject to the same procedure provided in this
Section 6.3 (and the Date of Closing shall be extended commensurately if the
Closing would have occurred but for those procedures being implemented for a New
Title Matter), except that Buyer’s Title Objection Period, Seller’s Cure Period
and Buyer’s Termination Period for any New Title Matters shall be five (5)
Business Days each. Close of Escrow shall be delayed as needed to accommodate
such additional time periods. Notwithstanding anything to the contrary contained
herein, Seller shall have no obligation to cure title Objections except (i)
financing liens of an ascertainable amount created by, under or through Seller,
which liens Seller shall cause to be released at or prior to Closing (with
Seller having the right to apply the Purchase Price or a portion thereof for
such purpose), and Seller shall deliver the Property free and clear of any such
financing liens, (ii) any exceptions or encumbrances to title which are created
by, under or through Seller after the date hereof without Buyer’s consent except
as may be expressly permitted under Section 8.1.7, and (iii) any Objections
which Seller has specifically agreed, in writing, to cure. The term “Permitted
Exceptions” shall mean: the specific exceptions in the Title Commitment approved
by Buyer; other exceptions or requirements to which Buyer has not raised an
Objection as provided herein or has subsequently waived such Objection in
writing and that Seller is not required to remove as provided above; real estate
taxes not yet due and payable; and rights of tenants (as tenants only) under the
Leases, all matters that would be shown on a current and accurate ALTA survey of
the Property, or if Buyer obtains a new Survey prior to expiration of the Due
Diligence Period, those matters shown on the new Survey, and any

 
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matters approved by Buyer or arising by, through or under Buyer or its or
Buyer’s contractors, employees, representatives, lenders, or agents.
6.3.2    Within three (3) days after the Opening of Escrow, Seller shall provide
Buyer with a copy of the most recent as-built survey of the Real Property in its
possession. Buyer, at its sole cost and expense, may elect to obtain a new
survey or revise, modify, or re-certify an existing survey of the Property
(either, the "Survey") as necessary in order for the title department of Escrow
Holder to delete the general survey exception from title or to otherwise satisfy
Buyer’s objectives. However, notwithstanding anything in this Agreement to the
contrary, Buyer shall not have the right to raise any Objections following
expiration of the Due Diligence Period based on any Survey it obtains.
6.4    Buyer’s Due Diligence. Buyer shall have thirty (30) days from and after
the later of (i) the Opening of Escrow and (ii) the date on which the Seller
Deliveries specified on Exhibit C are received by Buyer (“Due Diligence Period”)
to evaluate and analyze the feasibility of the Property for Buyer’s intended use
thereof, including, without limitation, the zoning of the Property, the
physical, environmental and geotechnical condition of the Property and the
economic feasibility of owning and operating the Property. Notwithstanding
anything to the contrary herein, if Buyer does not provide Seller with written
notice on or before the date which is five (5) Business Days following the
deadline for Seller to deliver all Seller Deliveries specified on Exhibit C,
listing with specificity any such Seller Deliveries Buyer believes was not
delivered or made available as required by this Agreement, then all Exhibit C
Seller Deliveries shall be deemed to have been made as of the Opening of Escrow.
Also notwithstanding anything to the contrary herein, the Due Diligence Period
shall expire no later than sixty (60) days from the Opening of Escrow. If,
during the Due Diligence Period, Buyer determines in Buyer’s sole and absolute
discretion that the Property is not acceptable for any reason whatsoever, Buyer
shall have the right, by giving written notice to Seller on or before the last
day of the Due Diligence Period, to terminate this Agreement. Except to the
extent arising out of the gross negligence or willful misconduct of Seller or
any Seller Indemnified Parties, Buyer agrees to indemnify and hold Seller
harmless and defend Seller and its property managers, affiliates, successors,
assigns, partners, managers, members, employees, representatives and agents
(collectively, the “Seller Indemnified Parties”) from and against any claims,
liabilities, liens, cause of action, expenses, costs, or damages (including
reasonable attorneys’ fees and personal injury claims but expressly excluding
punitive, special, consequential or incidental damages (except as related to any
unaffiliated third party claims)) (“Losses”) resulting from the entry on or
inspection of the Property prior to the Closing Date by Buyer or Buyer’s
contractors, employees, representatives, lenders or agents; provided, however,
that Buyer shall not be responsible for any Losses resulting from the discovery
of adverse information regarding the Property. In the event this Agreement is
terminated for any reason, Buyer shall promptly restore the Property to the
extent of any physical change or damage made as a result of the conduct of any
inspection or investigation of the Property by Buyer or Buyer’s agents,
representatives or contractors to substantially the same condition that existed
immediately prior to Buyer’s inspection and investigation, to the extent
permitted by applicable law. Any provision to the contrary herein
notwithstanding, the provisions of the previous two sentences shall survive
termination of this Agreement for any reason for a period of (a) three (3)
months with respect to the repair obligation above, any other claim of Seller
unrelated to a claim of a third party unaffiliated with Seller, or any

 
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claim of Seller relating to a claim made by a third party unaffiliated with
Seller of which Seller first becomes aware prior to the expiration of said three
(3) month period, or (b) one (1) year with respect to any claim of Seller
relating to a claim made by a third party unaffiliated with Seller of which
Seller first becomes aware after the expiration of said three (3) month period;
provided however that if Seller shall have provided written notice to Buyer with
reasonable detail of a specified repair Buyer is required to make hereunder
within the applicable period, then such period shall be extended until such
repair is complete.
6.5    Buyer’s Termination Right. If Buyer exercises the right to terminate this
Agreement in accordance with Sections 6.3 (including without limitation for any
New Title Matter) or 6.4 hereof, this Agreement shall terminate as of the date
the termination notice is given by Buyer (except as to such matters that are
expressly specified to survive the termination of this Agreement), and Escrow
Holder shall return the Deposit to Buyer If Buyer does not exercise the right to
terminate this Agreement in accordance with Sections 6.3 or Section 6.4 hereof,
this Agreement shall continue in full force and effect and the Deposit shall
become non-refundable except as provided in Section 3.1 above.
6.6    Contracts. On or before the expiration of the Due Diligence Period, Buyer
shall notify Seller in writing as to which of the Contracts Buyer elects to
assume at Closing, in Buyer’s sole and absolute discretion; provided that to the
extent that any Contract expressly requires payment of a penalty, premium, or
damages, including liquidated damages, for cancellation and Buyer elects not to
assume such Contract, then Buyer shall be solely responsible for the payment of
the same, which obligation shall survive Closing. If Buyer fails to provide such
notice, Buyer shall be deemed to have elected to assume all the Contracts.
Promptly following expiration of the Due Diligence Period, Seller shall notify
the vendors under those Contract(s) which Buyer has not agreed to assume (with a
copy of such notice to Buyer) and, provided that Closing occurs hereunder, such
Contracts shall terminate effective as of the Date of Closing. Seller shall, at
no unaffiliated third party cost to Seller, reasonably cooperate with Buyer,
both before and after the Close of Escrow, to obtain any approvals or consents
required to assign any Contracts to Buyer, including, without limitation,
sending requests for such approvals or consents to the party or parties whose
consent or approval is required. If Seller fails to timely send any such request
for approval or consent, following expiration of applicable notice and cure
periods hereunder, Buyer may do so in Seller’s name. Buyer shall indemnify, hold
harmless and defend Seller’s Indemnified Parties from and against any and all
Losses arising from or related to any action taken by Buyer in Seller’s name
pursuant to the prior sentence. Seller’s and Buyer’s obligations under this
Section 6.6 shall survive the Close of Escrow.

 
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7.    REPRESENTATIONS AND WARRANTIES.
7.1    Seller’s Representations and Warranties. The representations, warranties
and covenants of Seller in this Section 7.1 are a material inducement for Buyer
to enter into this Agreement. Buyer would not purchase the Property without such
representations, warranties and covenants of Seller. Such representations,
warranties and covenants shall survive the Closing for the period described at
the end of Section 8.1 below. Seller represents, warrants and covenants to Buyer
as of the date of this Agreement and as of the Closing Date as follows, except,
in all cases, for the Permitted Exceptions and any fact, information, or
condition disclosed in the Title Commitment and any updates thereto:
7.1.1    Seller is a limited liability company duly organized, validly existing
and in good standing under the laws of the State of Colorado. Seller has full
power and authority to enter into this Agreement and to perform this Agreement.
The execution, delivery and performance of this Agreement by Seller have been
duly and validly authorized by all necessary action on the part of Seller and
all required consents and approvals have been duly obtained. This Agreement is a
legal, valid and binding obligation of Seller, enforceable against Seller in
accordance with its terms, subject to principals of equity and bankruptcy laws.
There is no agreement to which Seller is a party or, to Seller’s knowledge, that
is binding on Seller which is in conflict with this Agreement.
7.1.2    All of the Personal Property owned by Seller as of the date of Seller’s
execution of this Agreement is described in Exhibit “B” attached hereto, which
is a materially accurate and materially complete list of all tangible personal
property owned by Seller relating to the ownership, management, operation,
maintenance or repair of the Real Property as of the date of Seller’s execution
of this Agreement. All of the Personal Property is located at the Real Property.
Seller has (and can convey at Closing) good title to the Personal Property and
the Intangible Property, free and clear of all liens, encumbrances, security
interests and adverse claims of any kind or nature whatsoever, other than liens,
encumbrances and security interests that will be terminated at or prior to
Closing; provided, however, Seller provides no representation or warranty as to
the Personal Property previously assigned or conveyed to and not purchased by
Seller.
7.1.3    All of the Leases are described in Schedule 1 attached hereto (to the
extent in effect as of the date of the Rent Roll attached as Schedule 1), and
there are no persons leasing, using or occupying the Real Property or any part
thereof except the tenants under the Leases. All of the Contracts in effect as
of the date of Seller’s execution of this Agreement are described in Schedule 2
attached hereto, which is a materially accurate and complete list of all
Contracts as of the date of Seller’s execution of this Agreement. Seller has
(and can convey at Closing) good title to the Leases, the Contracts and the
Approvals, free and clear of all liens, encumbrances, security interests and
adverse claims of any kind or nature whatsoever, other than liens, encumbrances
and security interests that will be terminated at or prior to Closing, except
with respect to any consents or fees required pursuant to the terms of any
Approvals for the transfer thereof to Buyer; provided, however, Seller provides
no representation or warranty as to the Lease, Contracts or Approvals previously
assigned to and not originated by Seller.

 
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7.1.4    All information on the Rent Roll (and on each subsequent rent roll
delivered by Seller to Buyer including without limitation the Rent Roll
delivered under Section 8.1.5) is accurate and complete in all material respects
as of the date thereof. To Seller’s knowledge, any written notices received from
any tenant under the Leases claiming any breach or default by Seller under any
of the Leases would be contained in the tenant files that have been made
available to Buyer as provided in Section 6 of this Agreement.
7.1.5    To Seller’s knowledge, any written information (including violation
notices and/or work orders) relating to any defect of the material systems,
elements and components of the Property (including the roof, foundation and
structural elements, and the elevator, mechanical, electrical and life safety
systems) that, to Seller’s knowledge, would require more than $500,000 to
correct, would be contained in the files that have been made delivered to or
available to Buyer as provided in Section 6 of this Agreement; provided,
however, consistent with Section 8.3 below, Buyer makes no representation or
warranty with respect to any roof.
7.1.6    To Seller’s knowledge, Seller has not received any written notice,
citation or other written claim from a governmental authority alleging any
building, earthquake, zoning, land use, environmental, antipollution, health,
fire, safety, access and accommodations for the physically handicapped,
subdivision, energy and resource conservation and similar laws, statutes, rules,
regulations and ordinances and all covenants, conditions and restrictions
applicable to the Real Property, which was not subsequently cured.
7.1.7    To Seller’s knowledge, other than the environmental reports delivered
to Buyer as required under Section 6, neither Seller nor its affiliates or
property manager has commissioned or is in actual possession of any study or
report relating to the presence or absence of hazardous materials on the
Property.
7.1.8    Except for (a) actions by Seller to evict tenants under the Leases that
will be completed prior to Closing and (b) any matter covered by Seller’s
current insurance policies, all of which are described on Schedule 7.1.8
attached hereto, there is no litigation, arbitration or other legal or
administrative suit, action, proceeding or investigation of any kind pending
(including, without limitation, involving the federal Department of Housing and
Urban Development or the Americans with Disabilities Act of 1990, as amended, or
any other law, rule or regulation governing access by disabled persons), for
which Seller has received written notice or service of process, or, to Seller’s
knowledge, threatened in writing against or involving Seller or relating to the
Property or any part thereof. Neither Seller nor any affiliate thereof or
property manager on Seller’s behalf has commenced any legal or administrative
action or proceeding to contest or appeal the amount of real property taxes or
assessments levied against the Real Property or any part thereof or the assessed
value of the Real Property or any part thereof for real property tax purposes.
7.1.9    Intentionally omitted.
7.1.10    Seller is not a “foreign person” as defined in Section 1445 of the
Internal Revenue Code of 1986, as amended, and the Income Tax Regulations
thereunder.
7.1.11    Intentionally omitted.

 
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7.1.12    Seller is solvent, has not made a general assignment for the benefit
of its creditors, and has not admitted in writing its inability to pay its debts
as they become due, nor has Seller filed, nor does it contemplate the filing of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or any other proceeding for the relief of debts in general, nor has
any such proceeding been instituted by or, to Seller’s knowledge, against
Seller.
7.1.13    Except for CBRE (“Broker”), Seller has not dealt with any investment
advisor, real estate broker or finder, or incurred any liability for any
commission or fee to any investment advisor, real estate broker or finder, in
connection with the sale of the Property to Buyer or this Agreement.
7.1.14    Intentionally omitted.
7.1.15    Intentionally omitted.
7.1.16    Seller is not any of the following: (i) a person or entity that is
listed in the annex to, or is otherwise subject to the provisions of, Executive
Order No. 13224 on Terrorist Financing (effective September 24, 2001) (herein
called the “Executive Order”); (ii) a person or entity owned or controlled by,
or acting for or on behalf of any person or entity that is listed in the Annex
to, or is otherwise subject to the provisions of, the Executive Order; (iii) a
person or entity that is named as a “specifically designated national” or
“blocked person” on the most current list published by the U.S. Treasury
Department’s Office of Foreign Assets Control (herein called “OFAC”) at its
official website, http://www.treas.gov/offices/enforcement/ofac; (iv) a person
or entity that is otherwise the target of any economic sanctions program
currently administered by OFAC; or (v) a person or entity that is affiliated
with any person or entity identified in the foregoing clauses (i), (ii), (iii),
or (iv).
7.1.17    Intentionally omitted.
7.1.18    To Seller’s knowledge, all of the Seller Deliveries provided or
otherwise made available to Buyer are complete copies of such documents to the
extent in Seller’s (or its affiliates’ or property manager’s) possession and are
the documents utilized and relied upon by Seller in the ordinary course of
business.
7.1.19    All employees of Seller or Seller's property manager employed at or in
connection with the Property have been paid their respective salaries and any
fringe benefits (including vacation and sick-leave) accruing through the date
hereof and will be paid in full as of the Closing Date.

 
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7.1.20    Intentionally omitted.
All references in this Agreement to Seller’s “knowledge” or similar terminology
shall mean and refer only to actual knowledge of Jim DiRienzo, Director of
Acquisitions, and Thomas Barta, Chief Operating Officer, and shall not be
construed to refer to the knowledge of any other partner, officer, director,
agent, employee or representative of Seller, or any affiliate of Seller, or to
impose upon such individuals any duty to investigate the matter to which such
actual knowledge or the absence thereof pertains, or to impose upon such
individuals any individual personal liability. In the event that Seller provides
to Buyer, whether by the Seller Deliveries or any other written disclosure from
Seller to Buyer made before the expiration of the Due Diligence Period,
information that actually conflicts with any representation or warranty, then
unless such information also constitutes a default by Seller of any other
provision of this Agreement (other than this Section 7.1), Buyer’s sole remedy
shall be to terminate this Agreement and receive a refund of the Deposit, and if
Buyer does not exercise such remedy then such representation or warranty shall
be automatically and without further action deemed modified by such information.
7.2    Buyer’s Representations and Warranties. Buyer represents and warrants to
Seller as follows (which representations, warranties and covenants shall survive
the Closing for one (1) year):
7.2.1    Buyer is a corporation, duly organized, validly existing, and in good
standing under the laws of the State of California.
7.2.2    Buyer has all requisite power and authority to execute and deliver this
Agreement and to carry out its obligations hereunder and the transactions
contemplated hereby. This Agreement has been, and the documents contemplated
hereby will be, duly executed and delivered by Buyer and constitute its legal,
valid, and binding obligation enforceable against it in accordance with its
terms.
7.2.3    Buyer is not any of the following: (i) a person or entity that is
listed in the annex to, or is otherwise subject to the provisions of the
Executive Order; (ii) a person or entity owned or controlled by, or acting for
or on behalf of any person or entity that is listed in the Annex to, or is
otherwise subject to the provisions of, the Executive Order; (iii) a person or
entity that is named as a “specifically designated national” or “blocked person”
on the most current list published by OFAC at its official website,
http://www.treas.gov/offices/enforcement/ofac; (iv) a person or entity that is
otherwise the target of any economic sanctions program currently administered by
OFAC; or (v) a person or entity that is affiliated with any person or entity
identified in the foregoing clauses (i), (ii), (iii), or (iv).
7.2.4    Except for Broker, Buyer has not dealt with any investment adviser,
real estate broker or finder, or incurred any liability for any commission or
fee to any investment adviser, real estate broker or finder, in connection with
the purchase of the Property or this Agreement.

 
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8.    COVENANTS.
8.1    Seller. Seller covenants and agrees with Buyer as follows:
8.1.1    Between the date of this Agreement and the Closing Date, Seller shall
not execute any new lease or contract affecting the Real Property or amend,
modify, renew, extend or terminate any of the existing Leases, Contracts,
Approvals or Permitted Exceptions in any respect without the prior approval of
Buyer, which approval may be withheld in Buyer’s reasonable discretion;
provided, however, that any Leases that are either renewed on a month-to-month
basis or are consistent with the current leasing practices of Seller as of the
date hereof, including, without limitation, current rental rates and concessions
as of the date hereof, shall be deemed to be automatically approved by Buyer.
Under no circumstance may Seller enter into any new lease for a term of less
than 6 months or more than 1 year, or accept any payments under any Leases more
than 2 months in advance. Notwithstanding anything herein to the contrary, Buyer
shall be deemed to have approved a proposed lease or contract, or amendment,
modification, renewal, extension or termination of any existing Leases,
Contracts, Approvals, or Permitted Exceptions if Buyer has not made an objection
to the same within two (2) Business Days after Buyer’s receipt of such proposed
document and a written request for approval. Further, Seller, may enter into
contracts for goods and services without the approval of Buyer, provided that
such Contracts must be terminable (and actually terminated) prior to Closing
without payment of any penalty or fee. Notwithstanding anything herein to the
contrary, Buyer shall be deemed to have approved a proposed contract if Buyer
has not made an objection to such contract within two (2) Business Days after
Buyer’s receipt of such proposed contract and a written request for approval.
Notwithstanding anything herein to the contrary, prior to Closing Seller shall
have the right, but not the obligation, to enforce its rights against any and
all Property occupants, guests or tenants in its ordinary course of business in
accordance with its current practices as of the date hereof. Buyer agrees that,
absent a breach by Seller of its obligations under this Section 8.1 to operate
and lease the Property in the ordinary course of business in accordance with
Seller’s current practices as of the date hereof, the departure or removal,
prior to Closing, of any of such guests, occupants or tenants, or the
termination of the applicable Lease, shall not be the basis for, nor shall it
give rise to, any claim on the part of Buyer, nor shall it affect the
obligations of Buyer under this Agreement in any manner whatsoever.

 
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8.1.2    Between the date of this Agreement and the Closing Date, Seller shall
manage, operate, maintain and repair the Real Property and the Personal Property
in the ordinary course of business in accordance with Seller’s current
management, operating, maintenance and repair practices in effect as of the date
hereof (including, without limitation, maintenance of substantially the same
advertising and marketing programs for the Real Property in effect as of the
date hereof). Except as necessary to address any life or safety issue at the
Property, Seller will not make any material alterations to the Property, and
shall promptly give Buyer copies of all notices received by Seller asserting any
breach or default under the Leases or the Contracts or any violation of the
Approvals, Permitted Exceptions or any covenants, conditions, restrictions,
laws, statutes, rules, regulations or ordinances applicable to the Real Property
or the Personal Property. Between the date of this Agreement and the Closing
Date, Seller shall keep in force property insurance covering all buildings,
structures, improvements, machinery, fixtures and equipment included in the Real
Property insuring against all risks of physical loss or damage, subject to
standard exclusions, in an amount equal to the actual replacement cost (without
deduction for depreciation) of such buildings, structures, improvements,
machinery, fixtures and equipment.
8.1.3    Intentionally omitted.
8.1.4    Intentionally omitted.
8.1.5    Seller shall promptly (i) notify Buyer in writing of any litigation,
arbitration, condemnation or administrative hearing to Seller’s knowledge before
any court or governmental agency concerning Seller or the Property that is
instituted after the date hereof, other than eviction or unlawful detainer
actions that will be completed prior to Closing, and shall provide all pleadings
with respect thereto and with respect to the matters described on Schedule 7.1.8
and other non-privileged information relating thereto reasonably requested by
Buyer, (ii) provide to Buyer copies of any Leases or Contracts entered into
after the date hereof (subject to the terms of Section 8.1.1 above), (iii)
within two (2) Business Days after Seller’s receipt of request therefor, provide
to Buyer an updated Rent Roll with all information concerning the Leases updated
through the date that is one (1) Business Day before the date that the updated
Rent Roll is delivered to Buyer, and (iv) upon written request from Buyer, to be
made not more frequently that every two weeks, any documents or materials
received by Seller from and after the Effective Date (or the date of the most
recent request of Buyer) that would have been included in Seller Deliveries if
received prior to such date.
8.1.6    Seller shall indemnify and defend Buyer against and hold Buyer harmless
from all Losses, (i) that may be suffered or incurred by Buyer arising from any
representation or warranty made by Seller in Section 7.1 hereof being untrue or
incorrect in any material respect when made or that may be caused by any breach
by Seller of any such representation or warranty or any breach of this
Agreement, or (ii) arising from or based on any third party personal injury or
third party property damage occurring in, on or about the Real Property before
the Closing Date.

 
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8.1.7    Between the date of this Agreement and the Closing Date, Seller shall
not (i) in any manner sell, convey, assign, transfer, encumber or otherwise
dispose of the Real Property, or any material Personal Property, or any part
thereof or interest therein or, without the prior written consent of Buyer,
which shall not be unreasonably withheld, conditioned, or delayed (and which
shall be deemed given if Buyer does not provide written notice of its
objections, with specific reasons therefor, within two (2) business days
following receipt of written request for approval from Seller), except for
encumbrances and liens to be released at Closing or, with respect to the
Personal Property only, as necessary to address any life or safety issue at the
Property, subject to reasonable replacements, or otherwise in the normal course
of Seller’s business, or (ii) market, initiate, solicit, continue or respond to
any offers or negotiations related to the sale of the Property or any material
portion thereof or interests therein; it being understood and agreed that Seller
shall work exclusively with Buyer until the expiration of the Due Diligence
Period, and thereafter until the Closing Date unless this Agreement is
terminated in accordance with its terms.
8.1.8    Seller shall pay all commissions, fees and expenses due to Broker in
respect of the sale of the Property to Buyer or this Agreement if the Closing
occurs, pursuant to the terms of a separate contract. Seller hereby agrees to
indemnify and hold Buyer harmless from and against any and all claims for
brokerage or finder’s fees or other similar commissions or compensation made by
any and all other brokers or finders claiming to have dealt with Seller in
connection with this Agreement or the consummation of the transaction
contemplated hereby.
8.1.9    Seller shall not dissolve its existing entity and shall remain validly
existing and in good standing under the laws of the State of its formation
during the period commencing on the date of this Agreement and ending on the
date that is nine (9) months after the Closing Date; provided, however, that if
Buyer gives Seller written notice of a claim under this Agreement on or before
the expiration of such period, such covenant shall extend until the date such
claim has been satisfactorily resolved in Buyer’s reasonable discretion.
The indemnification obligations of Seller set forth in Section 8.1.6 shall
survive the Closing or the termination of this Agreement for any reason for a
period of nine (9) months. Any claim made by Buyer in connection with said
indemnities shall be made within nine (9) months after the Closing or
termination or shall automatically be null, void and of no force or effect
whatsoever, and Buyer’s remedies for any such claim shall be limited to recovery
of damages not to exceed an amount equal to 1.5% of the Purchase Price;
provided, however, that there shall be no such monetary limitation on Buyer’s
damages in connection with any third party personal injury or third party
property damage occurring in, on or about the Real Property before the Closing
Date or claims made by tenants for return of a security deposit under a Lease
for which Buyer did not receive a credit from Seller at Closing; and provided
further however that Buyer shall not be entitled to indemnification from Seller
with respect to a breach by Seller of a representation or warranty or of this
Agreement of which Buyer had actual knowledge prior to Closing, it being
understood and agreed that, notwithstanding anything to the contrary contained
herein, Buyer’s sole remedies with respect to any such breach actually
discovered by Buyer prior to Closing shall be (i) to terminate this Agreement
and receive a refund of the Deposit, or (ii) if and to the extent applicable, as
set forth in Section 3.4 above.

 
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8.2    Buyer. Buyer covenants and agrees with Seller as follows:
8.2.1    Intentionally omitted.
8.2.2    Buyer shall indemnify and defend Seller against and hold Seller
harmless from all Losses, (i) that may be suffered or incurred by Seller arising
from any representation or warranty made by Buyer in Section 7.2 hereof being
untrue or incorrect in any material respect when made or that may be caused by
any breach by Buyer of any such representation or warranty or any breach of this
Agreement, or (ii) arising from or based on any personal injury or property
damage occurring in, on or about the Real Property from or after the Closing
Date.
The indemnification obligations of Buyer set forth in Section 8.2.2 shall
survive the Closing or the termination of this Agreement for any reason for a
period of nine (9) months. Any claim made by Seller in connection with said
indemnities shall be made within nine (9) months after the Closing or
termination or shall automatically be null, void and of no force or effect
whatsoever, and Seller’s remedies for any such claim shall be limited to
recovery of damages not to exceed an amount equal to 1.5% of the Purchase Price;
provided, however, that there shall be no such monetary limitation on Seller’s
damages in connection with any third party personal injury or third party
property damage occurring in, on or about the Real Property from or after the
Closing Date; and provided further however that Seller shall not be entitled to
indemnification from Buyer with respect to a breach by Buyer of a representation
or warranty of which Seller had actual knowledge prior to Closing, it being
understood and agreed that notwithstanding anything to the contrary contained
herein Seller’s sole remedies with respect to any such breach actually
discovered by Seller prior to Closing shall be as set forth in Section 3.3
above.
8.2.3    Buyer hereby agrees to indemnify and hold Seller harmless from and
against any and all claims for brokerage or finder’s fees or other similar
commissions or compensation made by any and all brokers or finders claiming to
have dealt with Buyer in connection with this Agreement or the consummation of
the transaction contemplated hereby, other than Broker. The terms of this
Section 8.2.3 shall survive Closing.
8.3     Roofs. Buyer acknowledges and agrees that, notwithstanding anything
herein to the contrary, all roofs of the improvements on the Real Property shall
be delivered in their as-is condition, and nothing shall obligate Seller to
repair or replace any such roofs (subject to Section 12, if and to the extent of
a subsequent casualty). In consideration for the foregoing, Buyer shall receive
a credit against the Purchase Price at Closing in the amount of $300,000.

 
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9.    ADJUSTMENTS AND PRORATIONS.
9.1    Generally. All taxes (including, without limitation, real estate taxes
and personal property taxes), collected rents, laundry income, fees, rents and
other income paid under any cable contracts Buyer elects to assume pursuant to
Section 6.6 above (including, without limitation, any amounts paid on or about
execution of the applicable contract for rights and privileges provided over the
term of the applicable contract), parking income, furniture rental, charges for
utilities (including water, sewer, gas, and fuel oil) and for utility services,
maintenance services, maintenance and service contracts, all operating costs and
expenses, and all other income, costs, and charges of every kind which in any
manner relate to the operation of the Property (but not including insurance
premiums) shall be prorated as of 11:59 p.m. the day immediately preceding the
Date of Closing (the “Proration Date”). If the amount of any such items is not
known on the Proration Date, they shall be apportioned on the basis of the
amounts for the preceding year, with a reapportionment as soon as the new
amounts can be ascertained. Any deposits on utilities paid by Seller shall be
returned to Seller. On the Date of Closing, Seller shall deliver to Buyer all
inventories of supplies on hand at the Property owned by Seller, if any, at no
additional cost to Buyer. Buyer and Seller shall cooperate to produce no later
than two (2) Business Days prior to the Closing Date a schedule of prorations
which is as complete and accurate as reasonably possible.
9.2    Rental Income. Rental income from the Property (including, without
limitation, laundry income, late fees and charges, and all other payments
received from tenants under or in connection with the Leases) shall be prorated
as of the Proration Date. Non-delinquent rents shall be prorated as of the
Proration Date. Rents delinquent as of the Proration Date (i.e., rents that are
due and owing after the expiration of any applicable grace period or, if no
grace period is provided, after the date such rents are due), but collected
later, shall be prorated as of the Proration Date when collected. Rents
collected after the Proration Date from tenants whose rental was delinquent at
the Proration Date shall be deemed to apply first to the current rental due at
the time of payment and second to rentals which were delinquent as of the
Proration Date. Rents collected after the Proration Date to which Seller is
entitled shall be promptly paid to Seller. For a period of sixty (60) days after
the Closing Date, Buyer shall use reasonable efforts to collect all rents which
are delinquent as of the Proration Date with no obligation to incur any expenses
or commence litigation to collect such rents. Commencing as of sixty one (61)
days after the Closing Date, Seller may use reasonable efforts, including
litigation, to collect any rents delinquent as of the Proration Date which are
still uncollected; provided, however, in exercising its remedies against tenants
as outlined in this Section, Seller shall not evict any tenant of the Property
or otherwise unreasonably interfere with Buyer’s operation of the Property. With
respect to unapplied refundable security deposits not yet applied, if any, made
by tenants at the Property, Buyer shall receive credit therefor at Closing. Any
leasing commissions with respect to the Leases shall be the sole responsibility
of Seller, and shall be paid or discharged fully at or prior to Closing.

 
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9.3    RUBS. Within ninety (90) days after the Closing Date, all reimbursable
utility bills for utility charges incurred by Seller and reimbursable to Seller
from the tenants under the Leases for periods prior to Closing (“RUBS”), if
received by Buyer, shall be remitted by Buyer to Seller. Thereafter, Buyer shall
have no obligation to remit RUBS income to Seller.
9.4    Proration Period. If any of the items subject to proration hereunder
cannot be prorated as of the Proration Date because the information necessary to
compute such proration is unavailable, or if any errors or omissions in
computing prorations as of the Proration Date are discovered subsequent to the
Close of Escrow, then such item shall be reapportioned and such errors and
omissions corrected as soon as practicable after the Close of Escrow and the
proper party reimbursed within thirty (30) days after such party’s receipt of
written demand therefor. This covenant shall survive the Closing of the sale
contemplated hereby for a period of one (1) year with respect to tax prorations
and ninety (90) days with respect to all other prorations, and shall then
terminate.
9.5    Rent Ready Adjustments. Not more than forty-eight (48) hours prior to
Close of Escrow (“Walk Though Date”), a representative of Buyer and a
representative of Seller shall conduct an onsite walk-through of the then
unoccupied rental units on the Property to determine whether such unoccupied
rental units are in “rent ready” condition. With respect to any rental unit that
is vacated either (a) on or before five (5) days prior to Close of Escrow that
Seller has not placed in a “rent ready” condition before the Walk Through Date
or (b) on or after the Walk Through Date, Buyer shall receive a credit against
the Purchase Price at Closing in the amount of $500 per unit. As used herein,
“‘rent ready’ condition” means Seller’s practice and procedures, as of the date
of this Agreement, for placing units in “rent ready” condition. Nothing
contained in this Section 9.6 shall be construed as limiting Buyer’s rights and
Seller’s obligations under the other provisions of this Agreement.
10.    CLOSING DOCUMENTS.
10.1    Seller’s Deliveries. Conditioned upon performance by Buyer hereunder,
Seller shall execute and deliver to Escrow Holder prior to 11:00 a.m. Mountain
Time on the Closing Date the following:
10.1.1    Deed. A special warranty deed with respect to the Real Property, in
the form of attached Exhibit “D” (the “Deed”), subject only to the Permitted
Exceptions;
10.1.2    Assignment and Assumption of Leases, Contracts and Approvals. An
assignment of all of Seller’s right, title and interest in and to the Leases,
Contracts and Approvals in the form of attached Exhibit “E” (“General
Assignment”);
10.1.3    Bill of Sale. A bill of sale in the form of attached Exhibit “F”,
assigning and transferring to Buyer all of the right, title, and interest of
Seller in and to the Personal Property and the Intangible Property;

 
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10.1.4    Non-Foreign Certificate. A certification that Seller is not a
non-resident alien (a foreign corporation, partnership, trust, or estate as
defined in the Internal Revenue Code and Treasury Regulations promulgated
thereunder), in the form of attached Exhibit “G”; and
10.1.5    Tenant Notices. One original form notice to the tenants under all
Leases of the occurrence of the sale of the Property in the form of attached
Exhibit “H”, as may be modified at the reasonable request of Buyer to conform to
the requirements of applicable law. Buyer shall deliver one copy of such tenant
notice to each tenant promptly following Closing, which obligation shall survive
the Closing.

 
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10.1.6    Affidavit(s). An owner’s and gap indemnity in the form agreed upon by
Seller and Escrow Agent during the Due Diligence Period. In the event Seller’s
last proposed form is not acceptable to Escrow Agent, Buyer’s sole remedy shall
be to terminate this Agreement prior to expiration of the Due Diligence Period
in accordance with the terms of Section 6.4.
10.1.7    Gap Indemnity. [Intentionally omitted – addressed in above form.]
10.1.8    Rent Roll. An updated Rent Roll, in the same form and with the same
categories of information as on the initial Rent Roll, with all information
concerning the Leases updated through the date which is one (1) Business Day
prior to the Proration Date.
10.2    Buyer’s Deliveries. Conditioned upon performance by Seller hereunder,
Buyer shall execute and deliver to Escrow Holder prior to 11:00 a.m. Mountain
Time on the Closing Date the General Assignment.
10.3    Other Closing Documents. Each party shall deliver to Escrow Holder such
duly executed and acknowledged or verified certificates, affidavits, settlement
statements and other usual and customary closing documents respecting the power
and authority to perform the obligations hereunder and as to the due
authorization thereof by the appropriate corporate, partnership, or other
representatives acting for it, as Escrow Holder may reasonably request, and such
conveyancing or transfer tax forms or returns, if any, as are required to be
delivered by Seller or Buyer under applicable state or local law in connection
with the conveyance of the Real Property. Each party shall deliver any
additional documents that the other party or Escrow Holder may reasonably
require for the proper consummation of the transaction contemplated by this
Agreement; provided, however, that no such additional document shall expand any
obligation, covenant, representation or warranty of such party or result in any
new or additional obligation, covenant, representation or warranty of such party
under this Agreement beyond those expressly set forth in this Agreement.
10.4    Closing Documents. All documents to be delivered to Escrow Holder
pursuant to this Section 10 shall hereinafter be referred to as “Closing
Documents”.
10.5    Possession. Upon Closing, Seller shall deliver to Buyer sole possession
of the Property, subject to the Leases, Contracts that are to be assumed by
Buyer, and Permitted Exceptions.

 
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11.    COSTS. Seller shall pay all real estate transfer taxes and documentary
stamps, the cost of the Title Commitment and any updates thereto, the cost of a
standard ALTA Owner’s Policy of Title Insurance (the “Title Policy”), the costs
of any endorsements to the Title Policy to the extent that such endorsements are
necessary to cure any Objections that Seller has elected in writing or is
required to cure, any amounts payable by Seller under Section 6.6, and the cost
of preparation of Seller’s Closing Documents. Buyer shall pay the cost for any
extended ALTA title insurance coverage, if desired, the cost of any endorsements
to the title policy (if requested by Buyer), the cost of preparation of Buyer’s
Closing Documents, the cost of any updated survey, if desired, and, if and to
the extent provided in Section 6.6 above, any cancellation fees or penalties due
to any vendor under any Contract as a result of the termination thereof. Seller
and Buyer shall each pay one-half (1/2) of (i) Escrow Holder’s escrow fee
(excluding charges assessed by Escrow Holder for special services, which shall
be paid by the party requesting or using such special services), (ii) recording
fees for the Deed, and (iii) other closing costs. Each party shall pay its own
attorney’s fees.
12.    CASUALTY OR CONDEMNATION. During the period from the Opening of Escrow
through Closing, all risk of loss from fire or other casualty or condemnation
shall be borne by Seller. If, before the Closing Date, (i) the improvements on
the Real Property are materially damaged by any casualty, meaning the cost for
repairs is more than an amount equal to 1.5% of the Purchase Price, or (ii)
proceedings are commenced for the taking by exercise of the power of eminent
domain of all or a material part of the Property, meaning the value of the
property to be taken is more than an amount equal to 1.5% of the Purchase Price,
or would materially affect access to, the number of parking spaces, or the legal
conforming status of the Property with applicable zoning laws, Buyer shall have
the right, by giving notice to Seller within fifteen (15) days after Seller
gives written notice of the casualty or condemnation to Buyer, to terminate this
Agreement, in which event this Agreement shall automatically terminate and the
Deposit shall be returned to Buyer. If, before the Closing Date, (a) the
improvements on the Real Property are damaged by any casualty, but not in a
material manner, (b) proceedings are commenced for the taking by exercise of the
power of eminent domain of less than such a material part of the Property, or
(c) Buyer has the right to terminate this Agreement pursuant to the preceding
sentence but Buyer does not exercise such right, then this Agreement shall
remain in full force and effect and, on the Closing Date, one of the following
shall occur, as applicable: (1) in the event of a casualty, if Seller has not
repaired the applicable damage prior to Closing Buyer shall receive (w) a credit
against the cash balance of the Purchase Price payable at Closing to the extent
of payments received by or on behalf of Seller prior to the Closing Date under
any applicable insurance policy or policies in effect with respect to the
Property, less the amount of Seller’s reasonable amounts expended on repairs
prior to Closing (which Seller agrees that, only as to a casualty that occurs
after expiration of the Due Diligence Period, shall not exceed $10,000 without
the prior written consent of Buyer, which shall not be unreasonably withheld,
conditioned, or delayed, and shall be deemed given if Buyer does not approve, or
disapprove with specific reasons therefor, within two (2) business days
following receipt of written request from Seller), (x) an assignment of Seller's
rights to any payments which may be payable subsequent to the Closing Date under
any applicable insurance policy or policies in effect with respect to the
Property (or, if Seller’s insurer does not permit such policy and/or payments to
be assigned to Buyer, a credit for such amounts), (y) an assignment of Seller's
rights to payments with respect to rents due subsequent to the Closing Date
under any rental insurance policy or policies

 
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with respect to the Property, if any (or, if Seller’s insurer does not permit
such policy and/or payments to be assigned to Buyer, a credit for such amounts),
and (z) a credit against the cash balance of the Purchase Price payable at the
Closing in an amount equal to the aggregate amount of the deductibles with
respect to all such insurance policies, but there shall be no other credit
against or reduction in the Purchase Price attributable to such casualty; or (2)
the condemnation award (or, if not theretofore received, the right to receive
such award) payable on account of the taking shall be transferred to Buyer, and
Seller shall receive a credit at Closing in the amount of its reasonable costs
related to such condemnation and pursuit of such award. Seller shall give notice
to Buyer immediately after the occurrence of any damage to the improvements on
the Real Property by any casualty or receipt of written notice of the
commencement of (or threatened commencement of) any eminent domain proceedings.
Buyer shall have a period of fifteen (15) days after Seller has given the notice
to Buyer required by this Section 12 to make the determination as to whether to
terminate this Agreement if so permitted by this Agreement. If necessary, the
Closing Date shall be postponed until Seller has given the notice to Buyer
required by this Section 12 and the period of fifteen (15) days described in
this Section 12 has expired.
13.    ATTORNEYS’ FEES. In any action to enforce or interpret the provisions of
this Agreement, the prevailing party’s attorneys’ fees and costs shall be paid
by the non-prevailing party.
14.    ASSIGNMENT. Buyer shall have the right, by giving notice to Seller before
the Closing Date, to assign this Agreement to any person or entity designated by
Buyer in such notice, so long as: (i) Buyer is an Affiliate (as defined below)
of the proposed purchasing entity; (ii) Buyer is not released from its liability
hereunder until Closing occurs; and (iii) Buyer provides written notice to
Seller of any proposed assignment no later than three (3) Business Days prior to
the Closing Date, together with reasonable evidence confirming that the
requirements of clauses (i) and (ii) have been satisfied. As used in this
Section, “Affiliate” is a person or entity controlled by, under common control
with, or controlling Buyer or Steadfast Apartment REIT, Inc., a Maryland
corporation. Except in connection with a like-kind exchange (as hereinafter
defined), or as set forth above, Buyer may not assign this Agreement Except in
connection with a like-kind exchange (as hereinafter defined), Seller may not
assign this Agreement.
15.    WAIVER. No waiver of any breach of any agreement or provision contained
herein shall be deemed a waiver of any preceding or succeeding breach of any
other agreement or provision herein contained. No extension of time for the
performance of any obligation or act shall be deemed an extension of time for
the performance of any other obligation or act. It is expressly agreed by the
parties hereto that time is of the essence with respect to this Agreement and
any aspect thereof.
16.    GOVERNING LAW; TIME. This Agreement shall be construed under the laws of
the State in which the Real Property is located (without regard to the
principles thereof governing conflicts of laws). All periods of time referred to
in this Agreement shall include all business and non-business days unless such
period of time specifies business days; provided, however, that if the date or
last date to perform any act or give a notice with respect to the Agreement
shall fall on a day that is not a business day, such act or notice may be timely
performed or given on the next succeeding business day.

 
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17.    NOTICES. All notices required or permitted to be given hereunder shall be
in writing and sent by overnight delivery service (such as Federal Express), in
which case notice shall be deemed given on the Business Day after the date sent,
or by personal delivery, in which case notice shall be deemed given on the date
received, or by certified mail, in which case notice shall be deemed given three
(3) Business Days after the date sent, or by electronic mail (with copy by
overnight delivery service), in which case notice shall be deemed given on the
date sent, to the appropriate address set forth below or at such other place or
places as either Buyer or Seller may, from time to time, respectively, designate
in a written notice given to the other in the manner described above.
To Seller:

With Copy To:

And to:
c/o Griffis Residential
4600 South Syracuse Street, Suite 200
Denver, CO 80237
Attention: Thomas S. Barta
E-mail: tbarta@griffisresidential.com
Telephone No.: (303) 268-2121

Griffis Residential
4600 South Syracuse Street, Suite 200
Denver, CO 80237
Attention: Veronica Martini
E-mail:   veronica@griffisresidential.com
Telephone No.: (303) 268-2121

Brownstein Hyatt Farber Schreck, LLP
410 17th Street, Suite 2200
Denver, CO 80202
Attention: Robert Kaufmann
E-mail: rkaufmann@bhfs.com
Telephone No.: (303) 223-1176

To Buyer:

Steadfast Asset Holdings, Inc.
18100 Von Karman Ave., Suite 500
Irvine, CA 92612
Attn: Ana Marie del Rio, Esq.
E-mail: AnaMarie.delRio@steadfastco.com
Telephone No.: (949) 852-0700

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

 
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18.    ENTIRE AGREEMENT. This instrument, executed in duplicate, sets forth the
entire agreement between the parties and may not be canceled, modified, or
amended except by a written instrument executed by both Seller and Buyer. All
exhibits and schedules, whether or not annexed hereto, are a part of this
Agreement for all purposes. This Agreement shall be binding upon and inure to
the benefit of Seller and Buyer, and their respective successors and permitted
assigns.
19.    COUNTERPARTS; COPIES. This Agreement may be executed and delivered in any
number of counterparts, each of which so executed and delivered shall be deemed
to be an original and all of which shall constitute one and the same instrument.
Electronic, photocopy and facsimile copies of signatures may be used in place
and stead of original signatures with the same force and effect as originals.
20.    AUTHORITY. The individual(s) executing this Agreement on behalf of each
party hereto hereby represent and warrant that he/she has the capacity, with
full power and authority, to bind such party to the terms and provisions of this
Agreement.
21.    RECORD ACCESS AND RETENTION.
Following the Effective Date, for a period of two (2) years after Closing,
Seller shall promptly provide to Buyer (at Buyer’s expense) copies of, or shall
provide Buyer reasonable access to, such non-privileged factual information
relating to the operation of the Property as may be reasonably requested by
Buyer, and in the possession or reasonable control of Seller or its property
manager or accountants, to enable Buyer’s auditor to conduct an audit, in
accordance with Rule 3-14 of Securities and Exchange Commission Regulation S-X,
of the income statements of the Property for the year to date of the year in
which Closing occurs plus the two (2) immediately preceding calendar years
(provided, however, that other than fees paid or payable to Seller, a Seller
affiliate or a third party for on-site property management, such audit shall not
include an audit of asset management fees internally allocated by Seller (as
opposed to paid to a third party) or interest expenses attributable to the
Seller). Buyer shall be responsible for all out-of-pocket costs associated with
this audit. Seller shall reasonably cooperate (at no cost to Seller) with
Buyer’s auditor in the conduct of such audit; provided such cooperation shall
not require Seller to incur any additional liability or to disclose any
attorney-client privileged materials or work product information, any appraisals
or other proprietary information, including any memoranda, compilations,
analysis, or other communications created by Seller for its own internal or
confidential purposes. In addition, following the Effective Date, for a period
of two (2) years after Closing, Seller agrees to provide to Buyer or any
affiliate of Buyer, if requested by such auditor, historical financial
statements for the Property, including (without limitation) income and balance
sheet data for the Property. Without limiting the foregoing, (i) Buyer or its
designated independent or other auditor may audit Seller’s operating statements
of the Property, at Buyer’s expense, and following the Effective Date, for a
period of two (2) years after Closing, Seller shall provide such documentation
regarding the operation of the Property as Buyer or its auditor may reasonably
request in order to complete such audit, and (ii)  following the Effective Date,
for a period of two (2) years after Closing, Seller shall furnish to Buyer such
financial and other information regarding the operation of the Property as may
be reasonably required by Buyer or any affiliate of Buyer to make any required
filings with the Securities and Exchange Commission or other governmental
authority. Seller’s obligation to maintain its

 
29
 

--------------------------------------------------------------------------------

records for use under this Section 21 shall be an on-going condition to Buyer’s
obligation to Close Escrow, and Seller shall maintain its records for use under
this Section 21 for a period of not less than two (2) years after the Closing
Date. The provisions of this Section shall survive Closing.
22.    CONTRACT CONSIDERATION. The parties have bargained for and expressly
agree that the rights and obligations of each party contained in this Agreement,
including, without limitation, Buyer’s obligation to deliver the Independent
Contract Consideration (as hereinafter defined) to Escrow Holder, constitute
sufficient consideration for the other party’s execution, delivery and
performance of this Agreement in accordance with its terms, including without
limitation, Buyer’s exclusive right to inspect and purchase the Property
pursuant to this Agreement and all contingencies and conditions of Closing for
the benefit of Buyer set forth in this Agreement. Buyer shall deliver to Escrow
Holder, in addition to and together with Buyer’s delivery to Escrow Holder of
the Initial Deposit, the sum of ONE HUNDRED AND 00/100 DOLLARS ($100.00)
(“Independent Contract Consideration”). Escrow Holder shall release and deliver
the Independent Contract Consideration to Seller immediately following receipt
from Buyer without the need for further instruction from any party. The
Independent Contract Consideration is in addition to and independent of any
other consideration or payment provided in this Agreement, is non‑refundable, is
fully earned, and shall be retained by Seller notwithstanding any other
provision of this Agreement.
23.    JURY TRIAL WAIVER. EACH OF THE PARTIES HEREBY WAIVES TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO WHICH SELLER AND/OR BUYER MAY BE PARTIES ARISING OUT OF,
IN CONNECTION WITH, OR IN ANY WAY PERTAINING TO, THIS AGREEMENT. THIS WAIVER IS
KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY THE PARTIES AND EACH HEREBY
REPRESENTS AND WARRANTS TO THE OTHER THAT NO REPRESENTATIONS OF FACT OR OPINION
HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN
ANY WAY MODIFY OR NULLIFY ITS EFFECT. EACH PARTY FURTHER REPRESENTS AND WARRANTS
TO THE OTHER THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND
THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OF ITS OWN FREE WILL,
AND HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. THE PROVISIONS
OF THIS SECTION SHALL SURVIVE CLOSING OR THE TERMINATION OF THIS AGREEMENT.
24.    COUNSEL. EACH PARTY HERETO WARRANTS AND REPRESENTS THAT EACH PARTY HAS
BEEN AFFORDED THE OPPORTUNITY TO BE REPRESENTED BY COUNSEL OF ITS CHOICE IN
CONNECTION WITH THE EXECUTION OF THIS AGREEMENT AND HAS HAD AMPLE OPPORTUNITY TO
READ, REVIEW, AND UNDERSTAND THE PROVISIONS OF THIS AGREEMENT.

 
30
 

--------------------------------------------------------------------------------

25.    EQUAL PARTICIPATION. SELLER AND BUYER HAVE PARTICIPATED EQUALLY IN THE
PREPARATION OF THIS AGREEMENT, AND, THEREFORE, THIS AGREEMENT AND EACH PROVISION
HEREOF SHALL NOT BE CONSTRUED IN FAVOR OF OR AGAINST ANY PARTY TO THIS AGREEMENT
BY REASON OF ONE PARTY’S BEING DEEMED TO PREPARED THIS AGREEMENT OR IMPOSED SUCH
PROVISION.
26.    TAX-FREE EXCHANGE.
Should either party intend to complete a like-kind exchange in accordance with
Section 1031 of the Internal Revenue Code ("like-kind exchange"), such party
(the “Exchanging Party”) may enter into a like-kind exchange agreement with a
third party exchange accommodation titleholder or qualified intermediary and, in
connection therewith, assign its rights under this Agreement to said third party
provided that said Agreement shall be binding upon such assignee in all respects
as to the obligations to the non-exchanging party. The non-exchanging party
hereby agrees to reasonably cooperate with Exchanging Party in the like-kind
exchange without any cost, expense or liability to the non-exchanging party and
without reduction or alteration of the rights of the non-exchanging party under
this Agreement; provided, however that the non-exchanging party shall not be
required to undertake any additional liability or obligation and provided
further that such like-kind exchange does not extend the Closing Date (or any
other dates in this Agreement) or be a condition to Closing. As part of such
like-kind exchange, Seller shall convey the Property directly to Buyer and
neither Buyer nor Seller shall be obligated to acquire any other property or
interests as part of such like-kind exchange. The Exchanging Party shall
indemnify and hold the non-exchanging party harmless and defend the
non-exchanging party from any and all Losses of any kind and nature in
connection with such like-kind exchange for benefit of the Exchanging Party or
the non-exchanging party’s cooperation with the Exchanging Party to accomplish
such like-kind exchange. Nothing herein shall release the Exchanging Party of
any of the obligations or liabilities under this Agreement. The terms of this
Section 26 shall survive Closing or any earlier termination of this Agreement.
27.    WAIVER OF CONSEQUENTIAL DAMAGES.
EXCEPT WITH RESPECT TO INDEMNIFICATION OBLIGATIONS WITH RESPECT TO CLAIMS BY
UNAFFILIATED THIRD PARTIES, UNDER NO CIRCUMSTANCES MAY EITHER PARTY SEEK OR BE
ENTITLED TO RECOVER FROM THE OTHER ANY SPECIAL, CONSEQUENTIAL, PUNITIVE,
SPECULATIVE OR INDIRECT DAMAGES, ALL OF WHICH THE PARTIES SPECIFICALLY WAIVE,
FROM THE OTHER PARTY FOR ANY BREACH BY SUCH PARTY, OF ITS COVENANTS OR ITS
OBLIGATIONS UNDER THIS AGREEMENT.

 
31
 

--------------------------------------------------------------------------------

28.    CONFIDENTIALITY.
Seller and Buyer shall not disclose the terms and conditions contained in this
Agreement and shall keep the same confidential, provided that each may disclose
the terms and conditions of this Agreement: (a) as required by law; (b) to
consummate the terms of this Agreement, or any financing relating thereto,
including to current and prospective investors; and (c) to its potential
lenders, attorneys, employees, agents, consultants, auditors and accountants.
Any non-public information obtained by Buyer in the course of its inspection of
the Property, and any non-public Seller Deliveries provided by Seller to Buyer
hereunder, shall prior to Closing be confidential and Buyer shall be prohibited
from making such information public other than to its agents, employees,
contractors, lenders and representatives and/or in accordance with clauses (a),
(b), and (c) above, whom Buyer shall inform to keep such information
confidential, without Seller’s prior written authorization, which may be granted
or denied in Seller’s reasonable discretion. In addition, each party shall use
its reasonable efforts prior to Closing to prevent its agents, employees,
contractors, lenders and representatives from divulging any such confidential
information to any unrelated third parties except for the limited purpose of
analyzing and investigating such information for the purpose of consummating the
transaction contemplated by this Agreement. In no event prior to Closing shall
Buyer or its agents, employees, contractors, representatives, existing or
potential lenders or investors, attorneys, auditors, or accountants, without the
prior written consent of Seller contact any tenant of the Property.
29.    NO RECORDING. Buyer shall not cause or knowingly permit this Agreement,
nor any memorandum or other evidence hereof, to be recorded in the public
records without Seller’s prior written consent, which consent may be withheld at
Seller’s sole discretion. If Buyer records this Agreement or any other
memorandum or evidence thereof, Buyer shall be in default of its obligations
under this Agreement.
30.    SEVERABILITY. In the event that any part of this Agreement shall be held
to be invalid or unenforceable by a court of competent jurisdiction, such
provision shall be reformed, and enforced to the maximum extent permitted by
law. If such provision cannot be reformed, it shall be severed from this
Agreement and the remaining portions of this Agreement shall be valid and
enforceable.
31.    NON-SOLICITATION OF EMPLOYEES. Prior to the expiration of the Due
Diligence Period, Buyer acknowledges and agrees that, without the express
written consent of Seller, neither Buyer nor any of Buyer’s employees,
affiliates or agents shall solicit any of Seller’s employees or any employees
located at the Property for potential employment.
32.    SURVIVAL. Except for the provisions of Sections 1.2, 9, 13, 15- 20,
22-25, and 27-33, provisions governing handling of the Deposit following a
termination, any indemnity obligations under this Agreement, or any other
provisions that by their express terms survive the termination of this Agreement
or the Closing, none of the terms and provisions of this Agreement shall survive
the termination of this Agreement, and if the Agreement is not so terminated,
all of the terms and provisions of this Agreement except the foregoing, which
shall survive Closing (but only for the applicable period set forth herein, if
specified), shall be merged into the Closing documents and shall not survive the
Closing.

 
32
 

--------------------------------------------------------------------------------

33.    DISCLOSURES. Seller and Buyer hereby acknowledge delivery of the
disclosures attached as Exhibit “I” hereto.
[SIGNATURES APPEAR ON FOLLOWING PAGE]

 
33
 

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day
and year first above written.
SELLER:
 
 
 
 
 
 
 
 
OASIS APARTMENTS, LLC,
a Colorado limited liability company
 
 
 
 
By:
Oasis Manager, LLC
 
a Colorado limited liability company,
 
its Manager
 
 
 
 
 
By:
Griffis Value Added Fund, LLC,
 
 
a Delaware limited liability company,
 
 
its Managing Member
 
 
 
 
 
 
 
 
By:
Griffis Fund Management, LLC,
 
 
 
a Colorado limited liability company,
 
 
 
its Managing Member
 
 
 
 
 
 
 
 
 
By:
Griffis Group of Companies, LLC,
 
 
 
 
a Colorado limited liability company,
 
 
 
 
its Managing Member
 
 
 
 
 
 
 
 
 
 
By:
/s/ Ian Griffis
 
 
 
 
Name:
Ian Griffis
 
 
 
 
Its:
Manager

BUYER:
 
 
 
 
 
 
 
STEADFAST ASSET HOLDINGS, INC.
 
 
a California corporation
 
 
 
 
 
 
 
By:
/s/ Ana Marie del Rio
 
 
Name:
Ana Marie del Rio
 
 
Its:
Vice President
 
 
 
 
 
 
 
 
 
 
 
 

--------------------------------------------------------------------------------

THE UNDERSIGNED HEREBY ACCEPTS THE FOREGOING PURCHASE AND SALE AGREEMENT AS OF
SEPTEMBER 9, 2014, AND AGREES TO ACT AS ESCROW HOLDER IN ACCORDANCE THEREWITH.
 
 
 
 
 
 
 
FIDELITY NATIONAL TITLE INSURANCE
 
 
COMPANY
 
 
 
 
 
 
 
 
By:
Valerie Rapp
 
 
 
VP, Escrow Officer Valerie Rapp
 
 
 
MAVR@FNF.COM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

--------------------------------------------------------------------------------

EXHIBIT “A”
Description of Real Property

Lot 1 in Grand Vista Filing No. 1, in the City of Colorado Springs, El Paso
County, Colorado, as amended by Corrected Surveyors Statement recorded November
30, 2005 at Reception No. 205191114.

 
EXHIBIT “A”
 
 
Page 1 of 1
 

--------------------------------------------------------------------------------

EXHIBIT “B”

Personal Property Description
[Attached]

[INTENTIONALLY OMITTED]

 
EXHIBIT “B”
 
 
Page 1 of 1
 

    

--------------------------------------------------------------------------------

EXHIBIT “C”
Due Diligence Documents

CONSTRUCTION / REHABILITATION
Delivered (Date)
Not applicable to Property
Not available to Seller
1
Plans & Specifications: Site plan and most current civil, landscape,
architectural, structural mechanical, electrical and fire protection plans,
including elevations (as available)
 
 
 
2
[intentionally omitted] – Not applicable
 
X
 
3
Current capital improvements with schedule (past 3 years) and Capital
expenditure budget for next 3 years
 
 
 
4
Detailed unit-by-unit list of upgraded vs. non-upgraded units (if applicable)
 
 
 
5
Warranties in effect, if any (construction, roof, mechanical equipment, etc.)
 
 
 
6
Copies of all licenses, permits, and governmental approvals, including business
license (with expiration date & annual costs), fictitious business name
statements and building permits (showing placed in service/completion dates)
 
 
 
7
Certificate(s) of Occupancy for all buildings
 
 
 
8
List and description of tenant or common area work in progress, if any
 
 
 
9
Copies of all governmental correspondence or notices pertaining to the property,
including but not limited to building code, health code, zoning and fire code,
 
 
 
10
Maintenance records/work orders, including water intrusion log, for past 12
months
 
 
 
11
[intentionally omitted] – Not applicable
 
X
 
 
FINANCIAL
 
 
 
1
Monthly operating statements, YTD & 3-year historical (cash flow and income
statements, balance sheets)
 
 
 
2
Year-end financial statements: Trailing-12 and audited statements, past 3 years
 
 
 
3
Operating budget, current year and/or next available
 
 
 
4
Property tax bills and Assessment notices, current and past 3 years, with proof
of payment (including special assessments or districts and all documentation
concerning appeals)
 
 
 
5
Utility bills for any master-metered utility expenses and any resident unit
utilities paid by the Property, monthly YTD and past calendar year (access to
utility billing site is preferred, if applicable)
 
 
 
6
List of utilities paid by Owner/Residents and list of account numbers
 
 
 
7
List of meters and required deposits (if any / typically for gas, electric,
water, phone)
 
 
 
8
Security deposit/resident ledgers, current
 
 
 

 
EXHIBIT “C”
 
 
Page 1 of 21
 

    

--------------------------------------------------------------------------------

9
Name and version of accounting software
 
 
 
10
Tax returns, past 3 years - For company purchases only
 
X
 
11
Loan documents (full closing binder and all amendments/modifications/extensions)
and all material correspondence and/or notices given to or received from
lender/servicer - For loan assumptions only  
 
X
 
12
REIT Property Services Questionnaire (form for completion to be provided)
 
 
 
13
General Ledger, prior year, most recent quarter-end and YTD (in Excel format),
excluding ownership expenses
 
 
 
14
Trial Balance, prior year, most recent quarter-end and YTD (in Excel format),
excluding ownership expenses
 
 
 
15
Bank Statements and Reconciliations, prior year, most recent quarter-end and YTD
(monthly) - Available promptly upon request, but only in the event of an audit
 
 
 
16
Cash Disbursement Journal, prior year, most recent quarter-end and YTD-
Available promptly upon request, but only in the event of an audit
 
 
 
17
Check Register, prior year, most recent quarter-end and YTD- Available promptly
upon request, but only in the event of an audit
 
 
 
18
Accounts Payable Aging Detail, prior year, most recent quarter-end and YTD
 
 
 
19
Aged Delinquency Report (showing total rent outstanding) with status of any
files placed for eviction or collection
 
 
 
20
Rent and expense selections, prior year, most recent quarter-end and YTD (25
respective selections to be made by Buyer’s independent REIT 3-14 auditors based
upon items received for #13-17 above) - Available promptly upon request, but
only in the event of an audit
 
 
 
21
Payroll selections, prior year, most recent quarter-end and YTD (2-months of
selections with detailed support to be made by Buyer’s independent REIT 3-14
auditors; detailed support to be requested may include inputs, timecards,
reimbursement calculations, agreements or contracts as necessary, to support and
recalculate the payroll amounts shown in the financial statements) - Available
promptly upon request, but only in the event of an audit
 
 
 
 
MANAGEMENT/LEASING/OPERATIONS
 
 
 
1
Monthly rent rolls, prior year and YTD, in Excel (with all lease charges broken
out, to include unit square footage, monthly rent, deposits, financial
concessions, other concessions, lease term, extension options, defaults
(financial or otherwise), and such other information as Buyer may require)
 
 
 
2
Market rent survey (comparison of subject w/other properties)
 
 
 
3
Occupancy history, monthly for past 3 years and current YTD
 
 
 
4
Current leases for all tenants with all available tenant correspondence files,
including amendments/letters/agreements/default notices given or received, with
all historical litigation pleadings, if any (access to electronic lease files is
preferred, if applicable)
 
 
 
5
Current or former lease selections, as the case may be, with copies of back-up
for rents received (for both resident and any housing authority portion paid, as
applicable), prior year and YTD (25 selections to be made by Buyer’s independent
REIT 3-14 auditors) - Available promptly upon request, but only in the event of
an audit
 
 
 

 
EXHIBIT “C”
 
 
Page 2 of 21
 

    

--------------------------------------------------------------------------------

6
Current form of lease with all addenda
 
 
 
7
List of leases under negotiation or currently out for signature
 
 
 
8
Current tenant contact sheet (name, address, phone number)
 
 
 
9
Current staff list (names, titles, hire dates, salary, unit info, hours per
week, list of benefits, commissions offered, if any)
 
 
 
10
Job descriptions for staff positions
 
 
 
11
Worker’s Comp insurance loss run history, including Experience Modification Rate
(YTD & past 3 yrs)
 
 
 
12
OSHA 300 Log (most recent 3 years)
 
 
 
13
Inventory of personal property on site, including items such as furniture,
supplies, appliances
 
 
 
14
Property brochure
 
 
 
15
List of all active vendors utilized at the property (name, function, contact
information)
 
 
 
16
Copies of all operating and management service contracts, including but not
limited to:
 
 
 
 
a. Advertising (including any apt. locator services & pay-per-lease agreements)
 
 
 
 
b. Alarm monitoring (including any firm alarm & security cameras)
 
 
 
 
c. Cable/TV (including any revenue sharing programs); if none, please indicate
so in writing
 
 
 
 
d. Elevator
 
 
 
 
e. Equipment leases (such as copier, postage machines, key control systems)
 
 
 
 
f. Fire extinguisher (including any fire sprinkler systems)
 
 
 
 
g. Furniture rental
 
 
 
 
h. HVAC
 
 
 
 
i. Internet (including any leased equipment such as modems and firewalls
 
 
 
 
j. Janitorial services (including any uniform cleaning services)
 
 
 
 
k. Landscaping (including any pond/lake maintenance and snow removal)
 
 
 
 
l. Laundry
 
 
 
 
m. Pest control (including any termite contracts)
 
 
 
 
n. Phone (landlines, cell phones, pagers, answering service)
 
 
 
 
o. Pool (maintenance, emergency phone, etc.)
 
 
 
 
p. Property management agreement; indicate whether entity is related party for
disclosure purposes
 
 
 
 
q. Security (including any on-site courtesy officer arrangements)
 
 
 
 
r. Trash (including recycling programs); Also a copy of the most recent invoice
 
 
 
 
s. Revenue Sharing (such as vending machines, pay phones)
 
 
 
 
t. Collection Recovery
 
 
 
 
u. Credit/application verification
 
 
 
 
v. Training programs (including any safety training materials and/or Safety
Plan)
 
 
 

 
EXHIBIT “C”
 
 
Page 3 of 21
 

    

--------------------------------------------------------------------------------

 
w. Software (including any property management software such as OneSite, Yardi,
etc.)
 
 
 
 
x. Common Area Services (such as office cleaning, dog waste removal, etc.)
 
 
 
 
y. Utility Billing by Third Party
 
 
 
 
z. Gate/Access Systems (including software for programming access cards/remotes)
 
 
 
 
aa. Towing/Parking Services
 
 
 
 
bb. Website Domain (including any website hosting)
 
 
 
 
cc. Boiler Maintenance and Water Treatment
 
 
 
 
PHYSICAL ITEMS
 
 
 
1
Property information, including number of pools, spas, dumpsters (with size),
buildings, storage units, laundry rooms
 
 
 
2
Marketing photos, including aerial photos if available
 
 
 
3
Parking: indicate carport, garages, or open spaces and how many of each
 
 
 
4
Unit floor plans with sq. footage
 
 
 
5
List of model units, if any (apt. #, bedrooms, rent loss)
 
 
 
6
List of fire safety equipment, such as smoke sensors, suppression devices, etc.
(including system type, rating, map of locations, etc.)
 
 
 
7
Current insurance certificates: Evidence of Commercial Property Insurance and
Certificate of Insurance and copies of all current Certificates of Liability
Insurance for any commercial tenants (such as laundry, cell towers, etc.)
 
 
 
8
Insurance loss run history, past 3 years and YTD (property & general liability)
 
 
 
9
Copies of insurance policies, past 3 years
 
 
 
10
All existing third party reports, including, but not limited to:
 
 
 
 
a. Certified, as-built ALTA Survey
 
 
 
 
b. [intentionally omitted]
 
 
 
 
c. [intentionally omitted]
 
 
 
 
d. [intentionally omitted]
 
 
 
 
e. [intentionally omitted]
 
 
 
 
f. Mold
 
 
 
 
g. Phase I Environmental
 
 
 
 
h. [intentionally omitted]
 
 
 
 
i. [intentionally omitted]
 
 
 
 
j. [intentionally omitted]
 
 
 
 
k. [intentionally omitted]
 
 
 
 
l. [intentionally omitted]
 
 
 
 
m. Fire/Life Safety Inspection Report (current)
 
 
 
 
TITLE AND AGREEMENTS
 
 
 
1
Existing Owner’s Title Insurance Policy
 
 
 
2
Zoning: any reports, compliance letters, maps, ordinances, amendments,
unrecorded CC&R’s, special use permits, etc.
 
 
 
3
Pending litigation summary and copies of all pleadings, if applicable
 
 
 

 
EXHIBIT “C”
 
 
Page 4 of 21
 

    

--------------------------------------------------------------------------------

4
Governmental Agreements: Any city or county development agreements, bonds, tax
increment financing agreements, municipal utility agreements, etc.
 
 
 
5
Condo / Association documents, if applicable (articles of incorporation, bylaws,
unrecorded CC&R’s, Declaration of Horizontal Regime, budgets, material notices,
rules and regulations, etc.)
 
 
 
6
Development Agreements: Any unrecorded development agreements or restrictions
with any private party
 
 
 
7
Access Agreements: Any unrecorded agreements for shared roadways, driveways or
other access
 
 
 
8
Amenities Agreements: Any unrecorded reciprocal easement agreements or shared
used agreements for any amenities
 
 
 
9
Other Unrecorded Agreements: Any agreements that will be binding on the property
after closing or that provide any material benefit to or obligation on the
property
 
 
 

REIT Property Services Questionnaire follows.

 
EXHIBIT “C”
 
 
Page 5 of 21
 

    

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REIT PROPERTY SERVICES QUESTIONNAIRE
MULTI-FAMILY APARTMENT PROPERTY

Except as may be specifically set forth in the Purchase and Sale Agreement to
which this form is attached, Oasis Apartments, LLC, a Colorado limited liability
company, makes no representations or warranties, express, written, oral,
statutory, or implied, regarding the information provided in this questionnaire,
and all such representations and warranties are hereby expressly excluded and
disclaimed. Oasis Apartments, LLC shall be under no obligation to update any
response provided, all such responses being as of the Effective Date only. All
responses herein are provided for informational purposes only, and, except as
may be specifically set forth in the Purchase and Sale Agreement to which this
form is attached, no person or entity shall not in any way be entitled to rely
upon the completeness or accuracy of the responses, and will instead rely on its
own inspections and consultants with respect to all matters which it deems
relevant to its decision to acquire, own and operate the subject property.

Property Information
Name of the property: ___________________________________________________
Location of the property: _________________________________________________
Description of the property: _______________________________________________
______________________________________________________________________

Are the on-site employees employed by the owner or by the property manager?
______
______________________________________________________________________

Property Manager Information    
Name of property management company: ____________________________________
Name of person completing this checklist and telephone and e-mail contact:
_________
______________________________________________________________________

1.
Is the amount of any rent received under any lease of space in the property
based or determined in full, or in part, on the “net” income or profits of the
tenant or any other person? [Note: rents based on a fixed percentage or
percentages of gross receipts or sales are not based on “net” income or
profits.]

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________

 
EXHIBIT “C”
 
 
Page 6 of 21
 

    

--------------------------------------------------------------------------------

2.
Are there any leases where the FMV of the leased personal property (e.g.,
furniture, equipment, appliances, etc.) represents more than 15% of the total
fair market value of both the real property and personal property that is leased
under the lease?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

3.
Are there any leases in which the property owner owns, directly or indirectly,
10% or more of the ownership interests in the tenant?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

 
EXHIBIT “C”
 
 
Page 7 of 21
 

    

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4.
Please indicate whether the property owner provides any of the following
services to its tenants by checking the “Service Provided” box. Check the
“Customary” box if the service is usually and customarily offered or provided to
tenants of similar class properties in the same geographic market in which the
property is located. Also indicate (by checking “D” or “IK”) whether the owner
provides the service directly through its employees (D) or indirectly by
contracting with an independent contractor (IK) to provide the service. Check
the “Separate Charge” box, if the owner separately bills and collects a charge
for the service.

                
Service                Separate
Provided    Customary    D    IK    Charge

a.
Utilities (electricity, gas, water, sewer)     o    o    o    o    o

b.
Air conditioning, heating, lighting     o    o    o    o    o

c.
Telecommunication services (e.g.,     o    o    o    o    o

telephone, internet, cable, etc.)
d.
Repair and maintenance of building     o    o    o    o    o

and building systems
e.
Repair and maintenance of individual units    o    o    o    o    o

HVAC, ceiling, floors, walls, appliances
f.
Security of building common areas,     o    o    o    o    o

including security guards
g.
Fire protection and sprinkler systems     o    o    o    o    o

h.
Key and security card replacements     o    o    o    o    o

i.
Lock-out, lock changing service, rekeying    o    o    o    o    o

j.
Grounds maintenance and landscaping     o    o    o    o    o

k.
Janitorial/cleaning and maintenance    o    o    o    o    o

of common areas
l.
Trash removal from designated locations    o    o    o    o    o

m.
Washing exterior windows    o    o    o    o    o

n.
Pest control    o    o    o    o    o

o.
Provision of parking spaces    o    o    o    o    o

p.
Organizing social activities    o    o    o    o    o

 
EXHIBIT “C”
 
 
Page 8 of 21
 

    

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5.
Please indicate whether the property owner provides any of the following
amenities to its tenants by checking the “Amenity Provided” box. Check the
“Customary” box if the amenity is usually and customarily offered or provided to
tenants of similar class properties in the same geographic market in which the
property is located.

Amenity                
Provided    Customary    

a.
Fitness center, health club     o    o

b.
Locker facilities, showers    o    o

c.
Towels    o    o

d.
Other recreational facilities    o    o    

e.
Business center    o    o    

f.
Clubhouse, party room    o    o

g.
Car wash area    o    o

h.
Coin-operated laundry machines (through    o    o

a lease/license with a vendor)    
i.
Coin-operated vending machines (through     o    o    

a lease/license with a vendor)
j.
ATM (through     o    o    

a lease/license with a vendor)
k.
Pay telephone (through     o    o    

a lease/license with a vendor)
l.
Shoe shine booth (through     o    o    

a lease/license with a vendor)
m.
Mail and express mail drop boxes    o    o

n.
Loading dock    o    o

o.
Dry cleaning drop-off & pick-up location    o    o

p.
CPR training, blood drives    o    o

q.
Seasonal/holiday parties, events, displays    o    o

If any services are provided in connection with the amenities (other than
electricity and general maintenance and cleaning of the area where an amenity is
located), please explain. For example, explain the duties of any attendants
involved with the business center. Also indicate whether these services are
usually and customarily offered or provided to tenants of similar class
properties in the same geographic market in which the property is located.

 
EXHIBIT “C”
 
 
Page 9 of 21
 

    

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(Note: fitness centers and other recreational facilities are addressed in more
detail in a following question.) ______________________________
__________________________________________________________________________________________________________________________________________________________________________________________________________________
______________________________________________________________________
______________________________________________________________________

6.
Please indicate whether the property owner provides any of the following
courtesies to its tenants by checking the “Courtesy Provided” box. Check the
“Customary” box if the courtesy is usually and customarily offered or provided
to tenants of similar class properties in the same geographic market in which
the property is located.

Courtesy                
Provided    Customary    

a.
Fax, copier    o    o

b.
Loaning jumper cables, tools    o    o    

c.
Loaning vacuum cleaner, sports equipment    o    o

d.
Accepting tenant’s packages, flowers    o    o

e.
Notary public    o    o    

f.
Distribution of promotional materials    o    o

for third party

If any special services are provided in connection with the courtesies, please
explain. Also indicate whether any special services are usually and customarily
offered or provided to tenants of similar class properties in the same
geographic market in which the property is located.
___________________________________________________
______________________________________________________________________
__________________________________________________________________________________________________________________________________________________________________________________________________________________
______________________________________________________________________

 
EXHIBIT “C”
 
 
Page 10 of 21
 

    

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7.
Does the property owner provide maid service within any apartment unit (other
than “corporate” or “guest” units which are addressed in the following
question)?

YES o NO o (If yes, answer the remaining questions)
If “yes”, please explain who provides the maid service, and explain the
contractual relationship pursuant to which the maid services is provided – e.g.,
whether the property owner or tenant contracts with the maid company.
_____________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Are the maid services that are provided of a kind that are usually and
customarily offered or provided to tenants of similar class properties in the
same geographic market in which the property is located? YES o NO o

Please provide (i) the estimated annual amount of income received or earned by
the property owner that is attributable to the maid service (e.g., any separate
charge received by the property owner for the service, or the amount of rents
received by the property owner that is attributable to such service) and (ii)
the estimated annual amount of direct costs incurred by the property owner in
providing the maid service. Also provide the estimated annual gross revenue
derived at the property. ________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

8.
Does the property owner lease “guest units” or “corporate units” where maid
service, linen service and other services are provided within fully furnished
units?

YES o NO o (If yes, answer the remaining questions)
If “yes”, please explain who provides the maid service and linen service, and
explain the contractual relationship pursuant to which the maid and linen
services are provided. Also identify all services provided that differ from
services that are provided to a tenant of a regular
unit._________________________________________________________
______________________________________________________________________
______________________________________________________________________

Are each of the maid and linen services and other services that are provided of
a kind that are usually and customarily offered or provided to tenants of
similar class properties in the same geographic market in which the property is
located?

 
EXHIBIT “C”
 
 
Page 11 of 21
 

    

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YES o NO o

Please provide (i) the estimated annual amount of income received or earned by
the property owner that is attributable to the maid, linen and other services
provided (e.g., any separate charge received by the property owner for such
services, or the amount of rents received by the property owner that is
attributable to such services) and (ii) the estimated annual amount of direct
costs incurred by the property owner in providing the services.
_______________________________________________________________
______________________________________________________________________
______________________________________________________________________

9.
Does the property owner provide security services at the property?

YES o NO o (If yes, answer the remaining questions)
Are the security services (including duties of the security personnel) of a kind
that are usually and customarily offered or provided to tenants of similar class
properties in the same geographic market in which the property is located? YES o
NO o

Are the security services provided for the general property, and not include
specialized security services for a particular tenant? YES o NO o

10.
Does the property owner provide parking spaces to its tenants (other than by net
leasing the parking facilities to an unrelated person, who in turn, operates the
parking facilities as part of its own business)?

YES o NO o (If “yes”, answer the remaining questions)
Check the box or boxes that describe the parking facilities (check more than one
box if applicable):
•
Open lot or garage (circle one) with no gated entry

•
Open lot or garage (circle one) with gated entry

•
Open lot or garage (circle one) with gated entry and cashier / parking attendant
on duty

•
Reserved parking

•
Public parking available for a hourly, daily or monthly charge

Are the parking facilities located in or adjacent to the property, and are the
parking facilities appropriate in size for the number of tenants and their
guests, customers, and subtenants who are expected to use the facilities? YES o
NO o

Does the property owner provide any services in connection with the parking
facilities (other than maintenance, repair, and lighting of the facilities)? YES
o NO o

 
EXHIBIT “C”
 
 
Page 12 of 21
 

    

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If “yes”, please explain. __________________________________________________
______________________________________________________________________

Are the services provided in connection with the parking facilities of a kind
that are usually and customarily offered or provided to tenants of similar class
properties in the same geographic market in which the property is located? YES o
NO o

Do tenants make separate payments for the use of parking spaces? YES o NO o

Are certain parking spaces reserved for use by particular tenants? YES o NO o

If “yes”, are recurring functions unique to the reserved parking spaces (other
than assigning and marking such spaces), such as towing illegally parked cars,
performed by an independent contractor? YES o NO o

Are parking attendants provided at the parking facilities to facilitate parking
by the general public for a parking fee? YES o NO o

If “yes”, are the parking attendants employed by an independent contractor who
operates the parking facilities under a management agreement with the property
owner?
YES o NO o

Are the services provided by the independent contractor usually and customarily
offered or provided to tenants of similar class properties in the same
geographic market in which the property is located? YES o NO o

If the independent contractor provides any services (other than maintenance,
repairs, and cleaning of the parking facilities; collecting parking fees;
parking cars to achieve the maximum capacity of the parking facility or for
reasons of safety or security) please describe (e.g., indicate if the
independent contractor provides or arranges for automobile detailing, washing,
oil changes and repairs etc.). ________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Are these additional services provided by the independent contractor usually and
customarily offered or provided to tenants of similar class properties in the
same geographic market in which the property is located? YES o NO o

 
EXHIBIT “C”
 
 
Page 13 of 21
 

    

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11.
Are all repair and maintenance services provided within the individual units
(e.g., repairs and maintenance of HVAC, plumbing, walls, ceilings, doors,
floors, and appliances) of a kind that are usually and customarily offered or
provided to tenants of similar class properties in the same geographic market in
which the property is located?

YES o NO o (answer the remaining questions)
Are there any other services provided within a unit (excluding repair and
maintenance services described above and maid and other services addressed in
the preceding two questions)?
 
If “yes”, please describe the additional services provided.
________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
____________________________________________________________________________________

Are each of these additional services provided of a kind that are usually and
customarily offered or provided to tenants of similar class properties in the
same geographic market in which the property is located? YES o NO o

12.
Does the property owner provide coin-operated laundry machines and vending
machines?

YES o NO o (If yes, answer the remaining questions)
Does the property owner lease/license space to the owner of the laundry and
vending machines and receive rental/license fees that are not based on “net”
income?
YES o NO o

Does the property owner provide any services other than electricity and cleaning
and maintenance of the area where the equipment is located? YES o NO o

If “yes”, please describe the additional services provided.
________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Are each of these additional services provided of a kind that are usually and
customarily offered or provided to tenants of similar class properties in the
same geographic market in which the property is located? YES o NO o

 
EXHIBIT “C”
 
 
Page 14 of 21
 

    

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Does the property owner own any of the laundry or vending machines?
YES o NO o

If “yes”, please provide details of what is owned.
______________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

13.
Has the property owner entered into agreements (generally a license or lease
agreement) with telecommunication providers that permit the providers to wire
the building and provide telecommunication services (e.g., telephone, cable,
internet, data transmission, etc.) to tenants pursuant to which the property
owner receives fees, or does the owner otherwise directly provide
telecommunication services (specify which applies)?

YES o NO o (If “yes”, answer the remaining questions)
If the owner directly provides telecommunication services to its tenants, please
explain the arrangement.
________________________________________________________
______________________________________________________________________
______________________________________________________________________

Are the telecommunications services offered to the tenants of the type usually
and customarily offered or provided to tenants of similar class properties
located in the same geographic market in which the property is located?
YES o NO o

14.
Does the property owner provide any “concierge” services (e.g., ordering food,
running errands, making restaurant reservations, ordering theatre tickets,
picking up dry cleaning, etc.) to the tenants?

YES o NO o
If “yes”, please describe the type of concierge services provided and by whom
(employees or independent contractor). ______________________________________
______________________________________________________________________
______________________________________________________________________

Are each of the concierge services of the type usually and customarily offered
or provided to tenants of similar class properties located in the same
geographic market in which the property is located? YES o NO o

 
EXHIBIT “C”
 
 
Page 15 of 21
 

    

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Please provide (i) the estimated annual amount of income received or earned by
the property owner that is attributable to the concierge services provided
(e.g., any separate charge received by the owner for such service, or the amount
of rents received by the property owner that is attributable to such service)
and (ii) the estimated annual amount of direct costs incurred by the property
owner in providing the concierge services. ____
______________________________________________________________________
______________________________________________________________________

15.
Does the property owner provide a fitness center or other recreational
facilities at the property?

YES o NO o
If “yes”, please describe the type of fitness center or other recreational
facilities provided at the property (e.g., fitness center, gym, basketball
court, swimming pool, etc.).
__________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Are the recreational facilities and equipment provided therein of the type
usually and customarily offered or provided to tenants of similar class
properties located in the same geographic market in which the property is
located? YES o NO o

Do tenants pay a fee to use any facility or is any facility open to non-tenants
for a fee? YES o NO o

If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

Does the property owner provide any services in connection with the facilities
(other than electricity, lighting, and cleaning and maintenance) including for
example, any attendants on site proving fitness instruction or other services?
YES o NO o

 
EXHIBIT “C”
 
 
Page 16 of 21
 

    

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If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
 
Are these additional services of a type usually and customarily offered or
provided to tenants of similar office properties located in the same geographic
markets where the properties are located? YES o NO o

Please provide (i) the estimated annual amount of income received or earned by
the property owner that is attributable to these additional services provided
(e.g., any separate charge received by the owner for such service, or the amount
of rents received by the property owner that is attributable to such service)
and (ii) the estimated annual amount of direct costs incurred by the property
owner in providing these additional services.
_______________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

16.
Are there any services, amenities, or courtesies provided to tenants that are
not of a kind usually and customarily offered or provided to tenants of similar
class properties in the same geographic market in which the property is located
(“noncustomary services”) and that have not been identified in previous
questions.

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
For each noncustomary service, please provide (i) the estimated annual amount of
income received or earned by the property owner that is attributable to the
noncustomary service (e.g., any separate charge received by the owner for such
service, or the amount of rents received by the property owner that is
attributable to such service) and (ii) the estimated

 
EXHIBIT “C”
 
 
Page 17 of 21
 

    

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annual amount of direct costs incurred by the property owner in providing the
noncustomary service. Also provide the estimated annual gross revenue derived at
the property. ____________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

17.
Does the property owner provide any of the services listed below?

YES o NO o (If “yes”, please circle the services provided.)
•
Provision of food service (e.g., including a cafeteria) either directly or
through a management agreement with a food service provider

•
Transportation services, shuttle bus

•
Day care or health care services

•
Full service conference center services

•
Secretarial services

•
Real estate brokerage

•
Pick-up, shipping of goods, logistics

•
Interior design & decorating

•
Plant care/watering within tenant’s space

•
Assisting tenant in move-in/move-out

•
Coffee butler services

•
Automobile detailing, washing

•
Automobile oil change, repairs

If the property owner provides any of these services, and the services have not
been reported as “noncustomary” services in Question #16, please describe
details associated with the service, and provide (i) the estimated annual amount
of income received or earned by the property owner that is attributable to the
noncustomary service (e.g., the separate charge received by the owner for such
service, or the amount of rents received by the property owner that is
attributable to such service) and (ii) the estimated annual amount of direct
costs incurred by the property owner in providing the noncustomary service. Also
provide the estimated annual gross revenue derived at the property. ____
______________________________________________________________________

 
EXHIBIT “C”
 
 
Page 18 of 21
 

    

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__________________________________________________________________________________________________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________________________________________________________________________________________________

18.
Are there any other services, amenities, or courtesies offered or provided to
tenants which have not been covered or identified in the previous questions?

YES o NO o
If “yes”, please describe and indicate whether each service, amenity, or
courtesy is usually and customarily offered or provided to tenants of similar
class properties in the same geographic market in which the property is located.
________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

19.
Does the property owner have a below fair market lease with any tenant (e.g., a
restaurant, cafeteria, or health club tenant) at the property that is intended
to subsidize the provision of that tenant’s services to other tenants at the
property, or does the owner actually pay any subsidy to a tenant?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________

20.
Are there any leases/licenses of property involving a term of less than 30 days?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________

21.
Are you aware of any lease agreement with terms that are not usual, ordinary,
and customary?

YES o NO o

 
EXHIBIT “C”
 
 
Page 19 of 21
 

    

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If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________

22.
In cases where the property owner offers or provides any services by contracting
with an independent contractor to provide such services, does the property owner
receive or derive any income from the independent contractor – e.g., through the
receipt of interest from a loan to such independent contractor, dividends from
an investment in such contractor, rents from leasing space to such contractor,
etc.? [Please consider whether a parking company that has been engaged to
operate a parking facility is paying rents to the owner under a lease of a
parking facility or other space at another property.]

YES o NO o
If “yes”, please describe __________________________________________________
______________________________________________________________________
______________________________________________________________________

23.
In cases where the property owner offers or provides any services by contracting
with an independent contractor to provide such service, does the property owner
have any ownership interest in such independent contractor, or does the
independent contractor have an ownership interest in the property owner, or are
you aware of any other related-party ownership between the property owner and
the independent contractor?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________

24.
Does the property owner receive a fee, commission, incentive payments, or any
other type of payment from any independent contractor that is providing services
to the tenants?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________

Are the services that are provided by the independent contractor of a kind that
are usually and customarily offered or provided to tenants of similar class
properties in the same geographic market in which the property is located? YES o
NO o

 
EXHIBIT “C”
 
 
Page 20 of 21
 

    

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25.
Does the property owner receive any amounts for selling any goods or services
(other than tenant services addressed in the preceding questions) to its tenants
or other parties?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________

26.
Does the property owner receive management fees for providing services to
properties that are not owned by the property owner or properties that are only
partially owned (e.g., through a partnership) by the property owner?

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
____________________________________________________________________                                                                    
27.
Are you aware of any other sources of property income not identified through the
previous questions (e.g., referral fees from 3rd parties, advertising income,
etc.)?    

YES o NO o
If “yes”, please describe. __________________________________________________
______________________________________________________________________
______________________________________________________________________

28.
Has the property owner made any loans to a tenant, vendor, or other parties or
otherwise received a promissory note?    

YES o NO o
If “yes”, please describe __________________________________________________
______________________________________________________________________
______________________________________________________________________

 
EXHIBIT “C”
 
 
Page 21 of 21
 

    

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EXHIBIT “D”
Form of Deed

After Recording Return to:

            
            
            

______________________________________________________________________________
(Space above this line is for recorder’s use)

SPECIAL WARRANTY DEED
                                                    

This Special Warranty Deed (this “Deed”) is made on this ____ day of __________,
2014. OASIS APARTMENTS, LLC, a Colorado limited liability company, whose address
is c/o Griffis Residential, LLC, 4600 South Syracuse Street, Suite 200, Denver,
CO 80237 (“Grantor”), for and in consideration of the payment of Ten and No/100
Dollars ($10.00) and other valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, does hereby sell and convey to
____________________, a __________ __________ (“Grantee”), whose address is
___________________________________________________________, all of its right,
title and interest in and to the following described real property, to-wit:

See Exhibit A attached hereto and incorporated herein by this reference;

Subject to all matters set forth on Exhibit B attached hereto and incorporated
herein by this reference;

With all its appurtenances and warrants the title against all persons lawfully
claiming under Grantor, subject to the matters set forth above.

Signature Page Immediately Follows]

 
EXHIBIT “D”
 
 
Page 1 of 1
 

    

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IN WITNESS WHEREOF, Grantor has executed this Deed as of the date first set
forth above.

GRANTOR:
 
 
 
 
 
 
 
OASIS APARTMENTS, LLC,
a Colorado limited liability company
 
 
 
 
By:
Oasis Manager, LLC
 
a Colorado limited liability company,
 
its Manager
 
 
 
 
 
By:
Griffis Value Added Fund, LLC,
 
 
a Delaware limited liability company,
 
 
its Managing Member
 
 
 
 
 
 
 
 
By:
Griffis Fund Management, LLC,
 
 
 
a Colorado limited liability company,
 
 
 
its Managing Member
 
 
 
 
 
 
 
 
 
By:
Griffis Group of Companies, LLC,
 
 
 
 
a Colorado limited liability company,
 
 
 
 
its Managing Member
 
 
 
 
 
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
 
 
Its:
 

 
EXHIBIT “D”
 
 
Page 2 of 3
 

    

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STATE OF COLORADO    )
) ss.
COUNTY OF ARAPAHOE    )

The foregoing instrument was acknowledged before me this _____ day of
__________, 2014, by _______________ as _______________ of Griffis Group of
Companies, LLC, a Colorado limited liability company, as the Managing Member of
Griffis Fund Management, LLC, a Colorado limited liability company, as the
Managing Member of Griffis Value Added Fund, LLC, a Delaware limited liability
company, as the Managing Member of Oasis Manager, LLC, a Colorado limited
liability company, as the Manger of Oasis Apartments, LLC, a Colorado limited
liability company.
Witness my hand and official seal.
My commission expires:                

                                                
Notary

EXHIBITS:
Exhibit A    Description of the Property

 
EXHIBIT “D”
 
 
Page 3 of 3
 

    

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EXHIBIT “E”
Form of General Assignment
ASSIGNMENT AND ASSUMPTION
OF LEASES, CONTRACTS AND APPROVALS

THIS ASSIGNMENT AND ASSUMPTION OF LEASES, CONTRACTS AND APPROVALS (this
“Assignment”) is made as of the _____ day of __________________, 2014, by and
between OASIS APARTMENTS, LLC, a Colorado limited liability company
(“Assignor”), and _________________________, a _________________________
(“Assignee”).
W I T N E S S E T H:
For good and valuable consideration, receipt and sufficiency of which are hereby
acknowledged, Assignor and Assignee hereby agree as follows:
1.    Assignor hereby sells, transfers, assigns and conveys to Assignee the
following:
(a)    All right, title and interest of Assignor in and to all leases and
occupancy agreements relating to the Property in effect as of the date hereof,
including, without limitation, those certain leases described on Exhibit A
attached hereto and made a part hereof (collectively, with all amendments,
modifications, supplements, restatements, and guarantees thereof, the “Leases”),
relating to the leasing of space in or on that certain land and improvements
located in the County of El Paso, State of Colorado, more particularly described
in Exhibit B attached hereto (the “Property”), and all of the rights, interests,
benefits and privileges of the lessor thereunder; but subject to all terms,
conditions, reservations and limitations set forth in the Leases.
(b)    To the extent assignable, all right, title and interest of Assignor in
and to those certain contracts set forth on Exhibit C attached hereto and made a
part hereof, and all warranties, guaranties, indemnities and claims (including,
without limitation, for workmanship, materials and performance) and which exist
or may hereafter exist against any contractor, subcontractor, manufacturer or
supplier or laborer or other services relating thereto applicable to periods
from and after the date hereof (collectively, the “Contracts”).
(c)    To the extent assignable, without consent or payment of any kind, all
right, title and interest of Assignor, if any, in and to all building permits,
certificates of occupancy, and other certificates, permits, licenses and
governmental approvals relating to the design, construction, ownership,
occupancy, use, management, operation, maintenance or repair of the Property,
including, without limitation, those identified on Exhibit D attached hereto and
made a part hereof (collectively, the “Approvals”) and any plans,
specifications, studies, reports or surveys relating to the Property; provided
such assignment shall not obligate Seller to actually deliver any such items or
copies thereof to the extent not included in the “Seller Deliveries” as defined
in the Purchase Agreement (defined below).

 
EXHIBIT “E”
 
 
Page 1 of 3
 

    

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2.    This Assignment is given pursuant to that certain Purchase and Sale
Agreement and Joint Escrow Instructions (as amended, the “Purchase Agreement”)
dated as of September 9, 2014, between Assignor and Assignee’s
predecessor-in-interest, STEADFAST ASSET HOLDINGS, INC., a California
corporation, providing for, among other things, the conveyance of the Leases,
the Contracts and the Approvals.
3.    Assignee hereby accepts the assignment of the Leases, the Contracts and
the Approvals and agrees to assume and discharge, in accordance with the terms
thereof, all of the obligations thereunder arising from and after the date
hereof.
4.    Assignor agrees to indemnify, defend and hold harmless Assignee from and
against any and all claims, demands, liabilities, losses, damages, costs and
expenses (including, without limitation, reasonable attorneys’ fees and
expenses) asserted against or suffered or incurred by Assignee as a result of or
in connection with any liabilities or obligations under the Leases and
Contracts; provided, however, that Assignor’s indemnification obligations under
this Paragraph 4 shall be limited to liabilities or obligations thereunder
relating to periods before the date hereof. The indemnification obligation of
Assignor set forth herein shall automatically expire nine (9) months after the
date of this Agreement.

5.    Assignee agrees to indemnify, defend and hold harmless Assignor from and
against any and all claims, demands, liabilities, losses, damages, costs and
expenses (including, without limitation, reasonable attorneys’ fees and
expenses) asserted against or suffered or incurred by Assignor as a result of or
in connection with any liabilities or obligations under the Leases and
Contracts; provided, however, that Assignee’s indemnification obligations under
this Paragraph 5 shall be limited to liabilities or obligations thereunder
relating to periods from and after the date hereof. The indemnification
obligation of Assignee set forth herein shall automatically expire nine (9)
months after the date of this Agreement.

6.    In any action to enforce the provisions of this Assignment, the prevailing
party’s attorneys’ fees and costs shall be paid by the non-prevailing party.
This Assignment may be executed in any number of counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same Assignment. The terms, covenants and
conditions hereof shall inure to the benefit of and be binding upon the
respective parties hereto, their heirs, executors, administrators, successors
and assigns. Any alteration, change or modification of or to this Assignment, in
order to become effective, must be made in writing and in each instance signed
on behalf of each party to be charged. No provision of this Assignment that is
held to be inoperative, unenforceable or invalid shall affect the remaining
provisions, and to this end all provisions of this Assignment shall be
severable. This Assignment shall be governed by the laws of the State of
Colorado.

 
EXHIBIT “E”
 
 
Page 2 of 3
 

    

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IN WITNESS WHEREOF, the parties have executed this Assignment as of the date
first above written.
ASSIGNOR:
 
 
 
 
 
 
 
OASIS APARTMENTS, LLC,
a Colorado limited liability company
 
 
 
 
By:
Oasis Manager, LLC
 
a Colorado limited liability company,
 
its Manager
 
 
 
 
 
By:
Griffis Value Added Fund, LLC,
 
 
a Delaware limited liability company,
 
 
its Managing Member
 
 
 
 
 
 
 
 
By:
Griffis Fund Management, LLC,
 
 
 
a Colorado limited liability company,
 
 
 
its Managing Member
 
 
 
 
 
 
 
 
 
By:
Griffis Group of Companies, LLC,
 
 
 
 
a Colorado limited liability company,
 
 
 
 
its Managing Member
 
 
 
 
 
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
 
 
Its:
 

 
ASSIGNEE:
 
 
 
 
 
 
a
 
 
 
 
 
 
 
 
 
By:
 
 
 
 
Name:
 
 
 
 
Title:
 
 
 
 
 
 
 

Exhibit A    Leases
Exhibit B    Description of the Property
Exhibit C    Contracts
Exhibit D    Approvals

 
EXHIBIT “E”
 
 
Page 3 of 3
 

    

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EXHIBIT “F”
Form of Bill of Sale
BILL OF SALE
Know all men by these presents, that OASIS APARTMENTS, LLC, a Colorado limited
liability company (“Grantor”), for and in consideration of the sum of ten
dollars and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, does bargain, sell, grant, transfer, assign,
and convey to _________________________, a Delaware limited liability company
(“Grantee”) all of its right, title, and interest, if any, in and to any and all
(i) tangible personal property owned by Grantor now at, in or upon or used in
connection with the property commonly known as The Oasis Apartments, located in
the City of Colorado Springs, County of El Paso and State of Colorado
(“Property”), and more particularly described on Exhibit A attached hereto,
including without limitation the tangible personal property listed on Schedule 1
attached hereto, and (ii) Intangible Property (as defined in the Purchase
Agreement) owned by Grantor in connection with or arising out of the ownership
of the Property.
Grantor is selling and Grantee is purchasing the Property “AS IS WHERE IS” with
all faults except as provided in that certain Purchase and Sale Agreement and
Joint Escrow Instructions dated as of September 9, 2014 between Grantor and
Grantee’s predecessor-in-interest, STEADFAST ASSET HOLDINGS, INC., a California
corporation (the “Purchase Agreement”). GRANTOR EXPRESSLY DISCLAIMS ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER EXPRESS OR
IMPLIED WARRANTY THAT MAY ARISE BY OPERATION OF LAW OR UNDER THE UNIFORM
COMMERCIAL CODE EXCEPT AS EXPRESSLY PROVIDED IN THE PURCHASE AGREEMENT.
In any action to enforce the provisions of this Bill of Sale, the prevailing
party’s attorneys’ fees and costs shall be paid by the non-prevailing party.
This Bill of Sale may be executed in any number of counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same Bill of Sale. The terms, covenants
and conditions hereof shall inure to the benefit of and be binding upon the
respective parties hereto, their heirs, executors, administrators, successors
and assigns. Any alteration, change or modification of or to this Bill of Sale,
in order to become effective, must be made in writing and in each instance
signed on behalf of each party to be charged. No provision of this Bill of Sale
that is held to be inoperative, unenforceable or invalid shall affect the
remaining provisions, and to this end all provisions of this Bill of Sale shall
be severable. This Bill of Sale shall be governed by the laws of the State of
Colorado.

IN WITNESS WHEREOF, Grantor has executed this Bill of Sale as of the ____ day of
___________________, 2014.

 
EXHIBIT “F”
 
 
Page 1 of 3
 

    

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OASIS APARTMENTS, LLC,
a Colorado limited liability company
 
 
 
 
By:
Oasis Manager, LLC
 
a Colorado limited liability company,
 
its Manager
 
 
 
 
 
By:
Griffis Value Added Fund, LLC,
 
 
a Delaware limited liability company,
 
 
its Managing Member
 
 
 
 
 
 
 
 
By:
Griffis Fund Management, LLC,
 
 
 
a Colorado limited liability company,
 
 
 
its Managing Member
 
 
 
 
 
 
 
 
 
By:
Griffis Group of Companies, LLC,
 
 
 
 
a Colorado limited liability company,
 
 
 
 
its Managing Member
 
 
 
 
 
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
 
 
Its:
 

                                

EXHIBITS:
A - Legal Description
SCHEDULES:
1 – Tangible Personal Property

 
EXHIBIT “F”
 
 
Page 2 of 3
 

    

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Exhibit A
Legal Description

 
EXHIBIT “F”
 
 
Page 3 of 3
 

    

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EXHIBIT “G”
Form of Non-Foreign Certificate
CERTIFICATE OF NON-FOREIGN STATUS
Section 1445 of the Internal Revenue Code provides that a transferee of a U.S.
real property interest must withhold tax if the transferor is a foreign person.
To inform _________________________, a Delaware limited liability company
(“Transferee”), that withholding of tax is not required upon the disposition of
a U.S. real property interest by OASIS APARTMENTS, LLC, a Colorado limited
liability company (“Transferor”), the undersigned hereby certifies to Transferee
the following on behalf of Transferor:

1.    Transferor is not a foreign corporation, foreign partnership, foreign
trust, or foreign estate (as those terms are defined in the Internal Revenue
Code and Income Tax Regulations);
2.    Transferor’s U.S. employer identification number is _____________; and
3.    Transferor’s office address is _________________________________________.
Transferor understands that this certification may be disclosed to the Internal
Revenue Service by Transferee and that any false statement contained herein
could be punished by fine, imprisonment, or both.
Under penalties of perjury, the undersigned declares that the undersigned has
examined this certification and to the best of the undersigned’s knowledge and
belief it is true, correct and complete, and the undersigned further declares
that the undersigned has authority to sign this document on behalf of
Transferor.
Dated as of ____________________, 2014.

 
EXHIBIT “G”
 
 
Page 1 of 1
 

--------------------------------------------------------------------------------

OASIS APARTMENTS, LLC,
a Colorado limited liability company
 
 
 
 
By:
Oasis Manager, LLC
 
a Colorado limited liability company,
 
its Manager
 
 
 
 
 
By:
Griffis Value Added Fund, LLC,
 
 
a Delaware limited liability company,
 
 
its Managing Member
 
 
 
 
 
 
 
 
By:
Griffis Fund Management, LLC,
 
 
 
a Colorado limited liability company,
 
 
 
its Managing Member
 
 
 
 
 
 
 
 
 
By:
Griffis Group of Companies, LLC,
 
 
 
 
a Colorado limited liability company,
 
 
 
 
its Managing Member
 
 
 
 
 
 
 
 
 
 
  By:
Griffis Group of Companies, LLC,
 
 
 
 
 
a Colorado limited liability company,
 
 
 
 
 
  its Managing Member

 
 
By:
 
 
 
Name:
 
 
 
Its:
 

 

    
 
EXHIBIT “G”
 
 
Page 2 of 3
 

    

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STATE OF COLORADO    )
) ss.
COUNTY OF ARAPAHOE    )

The foregoing instrument was acknowledged before me this _____ day of
__________, 2014, by _______________ as _______________ of Griffis Group of
Companies, LLC, a Colorado limited liability company, as the Managing Member of
Griffis Fund Management, LLC, a Colorado limited liability company, as the
Managing Member of Griffis Value Added Fund, LLC, a Delaware limited liability
company, as the Managing Member of Oasis Manager, LLC, a Colorado limited
liability company, as the Manger of Oasis Apartments, LLC, a Colorado limited
liability company.
Witness my hand and official seal.
My commission expires:                

                                                
Notary

    
 
EXHIBIT “G”
 
 
Page 3 of 3
 

    

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EXHIBIT “H”
Form of Tenant Notice

[**DATE**]

TO:
All Valued Residents of The Oasis Apartments
Re:
Notice of Lease Assignment and Transfer of Security Deposit

This letter is to notify you that the property commonly known as Oasis
Apartments, 1495 Farnham Point, Colorado Springs, CO 80904 (“Property”) has this
date been sold and the ownership transferred.

In connection with this sale, all of the interest of the lessor under your lease
of space in the Property, together with your security deposit, have been
transferred to the new owner. You are hereby notified that, from and after the
date hereof and until further notice, all future payments under your lease
should be made payable to Oasis Apartments and mailed to [**COMMUNITY LEASING
OFFICE ADDRESS**]. In addition, all questions or other matters regarding your
lease should be directed to the property manager at [**COMMUNITY LEASING OFFICE
PHONE NUMBER**].

Thank you for your cooperation.

OASIS APARTMENTS, LLC,
a Colorado limited liability company
 
 
 
 
By:
Oasis Manager, LLC
 
a Colorado limited liability company,
 
its Manager
 
 
 
 
 
By:
Griffis Value Added Fund, LLC,
 
 
a Delaware limited liability company,
 
 
its Managing Member
 
 
 
 
 
 
 
 
By:
Griffis Fund Management, LLC,
 
 
 
a Colorado limited liability company,
 
 
 
its Managing Member
 
 
 
 
 
 
 
 
 
By:
Griffis Group of Companies, LLC,
 
 
 
 
a Colorado limited liability company,
 
 
 
 
its Managing Member

 
EXHIBIT “H”
 
 
Page 1 of 2
 

--------------------------------------------------------------------------------

 
 
 
 
 
 
 
 
 
 
By:
 
 
 
 
 
Name:
 
 
 
 
 
Its:
 

    
 
EXHIBIT “H”
 
 
Page 2 of 2
 

    

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EXHIBIT “I”
Disclosures
ADA DISCLOSURE

BUYER ACKNOWLEDGES THAT THE PROPERTY MAY BE SUBJECT TO THE FEDERAL AMERICANS
WITH DISABILITIES ACT (THE “ADA”) AND THE FEDERAL FAIR HOUSING ACT (THE “FHA”).
THE ADA REQUIRES, AMONG OTHER MATTERS, THAT TENANTS AND/OR OWNERS OF “PUBLIC
ACCOMMODATIONS” REMOVE BARRIERS IN ORDER TO MAKE THE PROPERTY ACCESSIBLE TO
DISABLED PERSONS AND PROVIDE AUXILIARY AIDS AND SERVICES FOR HEARING, VISION OR
SPEECH IMPAIRED PERSONS. EXCEPT AS EXPRESSLY PROVIDED IN SECTION 7.1, SELLER
MAKES NO WARRANTY, REPRESENTATION OR GUARANTEE OF ANY TYPE OR KIND WITH RESPECT
TO THE PROPERTY’S COMPLIANCE WITH THE ADA OR THE FHA (OR ANY SIMILAR STATE OR
LOCAL LAW), AND SELLER EXPRESSLY DISCLAIMS ANY SUCH REPRESENTATIONS.
SPECIAL TAXING DISTRICTS DISCLOSURE
SPECIAL TAXING DISTRICTS MAY BE SUBJECT TO GENERAL OBLIGATION INDEBTEDNESS THAT
IS PAID BY REVENUES PRODUCED FROM ANNUAL TAX LEVIES ON THE TAXABLE PROPERTY
WITHIN SUCH DISTRICTS. PROPERTY OWNERS IN SUCH DISTRICTS MAY BE PLACED AT RISK
FOR INCREASED MILL LEVIES AND TAX TO SUPPORT THE SERVICING OF SUCH DEBT WHERE
CIRCUMSTANCES ARISE RESULTING IN THE INABILITY OF SUCH A DISTRICT TO DISCHARGE
SUCH INDEBTEDNESS WITHOUT SUCH AN INCREASE IN MILL LEVIES. BUYERS SHOULD
INVESTIGATE THE SPECIAL TAXING DISTRICTS IN WHICH THE PROPERTY IS LOCATED BY
CONTACTING THE COUNTY TREASURER, BY REVIEWING THE CERTIFICATE OF TAXES DUE FOR
THE PROPERTY, AND BY OBTAINING FURTHER INFORMATION FROM THE BOARD OF COUNTY
COMMISSIONERS, THE COUNTY CLERK AND RECORDER, OR THE COUNTY ASSESSOR.
METHAMPHETAMINE
IF THE PROPERTY IS RESIDENTIAL, AND SELLER KNOWS THAT METHAMPHETAMINE WAS EVER
MANUFACTURED, PROCESSED, COOKED, DISPOSED OF, USED OR STORED AT THE PROPERTY,
SELLER IS REQUIRED TO DISCLOSE SUCH FACT. NO DISCLOSURE IS REQUIRED IF THE
PROPERTY WAS REMEDIATED IN ACCORDANCE WITH STATE STANDARDS AND OTHER
REQUIREMENTS ARE FULFILLED PURSUANT TO C.R.S. § 25-18.5-102. BUYER FURTHER
ACKNOWLEDGES THAT BUYER HAS THE RIGHT TO ENGAGE A CERTIFIED HYGIENIST OR
INDUSTRIAL HYGIENIST TO TEST WHETHER THE PROPERTY HAS EVER BEEN USED AS A
METHAMPHETAMINE LABORATORY. IF BUYER’S TEST RESULTS INDICATE THAT THE PROPERTY
HAS BEEN CONTAMINATED WITH METHAMPHETAMINE, BUT HAS NOT BEEN REMEDIATED TO MEET
THE STANDARDS ESTABLISHED BY THE RULES OF THE STATE BOARD OF HEALTH

 
EXHIBIT “I”
 
 
Page 1 of 2
 

--------------------------------------------------------------------------------

PROMULGATED PURSUANT TO C.R.S. § 25-18.5-102, BUYER SHALL PROMPTLY GIVE WRITTEN
NOTICE TO SELLER OF THE RESULTS OF THE TEST, AND BUYER MAY TERMINATE THIS
AGREEMENT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT.
POTABLE WATER
THE SOURCE OF POTABLE WATER FOR THE PROPERTY IS:
¨     A WELL;
ý    A WATER PROVIDER, WHICH CAN BE CONTACTED AS FOLLOWS:
NAME:    Colorado Springs Utilities
    ADDRESS:    111 S. Cascade Ave., Colorado Springs, CO 80903
    WEB SITE:    www.csu.org
    TELEPHONE: 719-448-4800
¨     NEITHER A WELL NOR A WATER PROVIDER, THE SOURCE IS [DESCRIBE]:
                    

SOME WATER PROVIDERS RELY, TO VARYING DEGREES, ON NON-RENEWABLE GROUND WATER.
BUYER MAY WISH TO CONTACT ITS PROSPECTIVE PROVIDER TO DETERMINE THE LONG-TERM
SUFFICIENCY OF THE PROVIDER’S WATER SUPPLIES.

 
EXHIBIT “I”
 
 
Page 2 of 2
 

        

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SCHEDULE 1

LEASES

[Attached]

[INTENTIONALLY OMITTED]

SCHEDULE 1
012762\0087\11507821.11

--------------------------------------------------------------------------------

SCHEDULE 2

CONTRACTS

[Attached]

[INTENTIONALLY OMITTED]

SCHEDULE 2
012762\0087\11507821.11

--------------------------------------------------------------------------------

SCHEDULE 7.1.8

None

SCHEDULE 7.1.8
012762\0087\11507821.11