Document:

Standard II Portfolio - Contract of Sale

Exhibit
10.39

PURCHASE
AND SALE CONTRACT

AMONG

CCP IV ARBOURS OF HERMITAGE, LLC, 

OXFORD-COLUMBIA ASSOCIATES, A MARYLAND LIMITED
PARTNERSHIP

AIMCO HILLMEADE, LLC, 

BRANDERMILL-OXFORD ASSOCIATES LIMITED PARTNERSHIP,

LAZY HOLLOW PARTNERS, 

SHELTER PROPERTIES II LIMITED PARTNERSHIP,

AMBASSADOR VII, L.P.,

WOODS OF INVERNESS CPF 16, L.P. and

ST. MARY’S OXFORD ASSOCIATES LIMITED
PARTNERSHIP

 

AS
SELLERS

AND

Standard
Portfolios LLC, 

a Delaware limited
liability company

 

AS
PURCHASER

TABLE OF CONTENTS

Page

 

	
 
	
ARTICLE
I
	
DEFINED
TERMS
	
1

	
 
	
ARTICLE
II
	
PURCHASE
AND SALE, PURCHASE PRICE & DEPOSIT
	
1

	
 
	
2.1
	
Purchase
and Sale
	
1

	
 
	
2.2
	
Purchase
Price and Deposit
	
1

	
 
	
2.3
	
Escrow
Provisions Regarding Deposit
	
2

	
 
	
ARTICLE
III
	
FEASIBILITY
PERIOD
	
4

	
 
	
3.1
	
Feasibility
Period
	
4

	
 
	
3.2
	
Expiration
of Feasibility Period
	
5

	
 
	
3.3
	
Conduct
of Investigation
	
5

	
 
	
3.4
	
Purchaser
Indemnification
	
5

	
 
	
3.5
	
Property
Materials
	
7

	
 
	
3.6
	
Property
Contracts
	
8

	
 
	
ARTICLE
IV
	
TITLE
	
9

	
 
	
4.1
	
Title
Documents
	
9

	
 
	
4.2
	
Survey
	
10

	
 
	
4.3
	
Objection
and Response Process/Permitted Exceptions
	
10

	
 
	
4.4
	
Subsequently
Disclosed Exceptions
	
11

	
 
	
4.5
	
Existing
Deed of Trust or Mortgage
	
12

	
 
	
4.6
	
Assumed
Loans
	
12

	
 
	
4.7
	
Purchaser’s
Financing Contingency
	
15

	
 
	
4.8
	
AIMCO
Loan
	
16

	
 
	
4.9
	
Purchaser
Financing
	
19

	
 
	
4.10
	
Housing
Assistance Program Vouchers
	
19

	
 
	
4.11
	
HUD
Approval
	
19

	
 
	
ARTICLE
V
	
CLOSING
	
25

	
 
	
5.1
	
Closing
Date
	
25

	
 
	
5.2
	
Seller
Closing Deliveries
	
26

	
 
	
5.3
	
Purchaser
Closing Deliveries
	
28

	
 
	
5.4
	
Closing
Prorations and Adjustments
	
29

	
 
	
5.5
	
Post
Closing Adjustments
	
35

	
 
	
ARTICLE
VI
	
REPRESENTATIONS
AND WARRANTIES OF SELLER AND
	
 

	
 
	
 
	
PURCHASER
	
35

	
 
	
6.1
	
Seller’s
Representations
	
35

	
 
	
6.2
	
AS-IS
	
37

	
 
	
6.3
	
Survival
of Seller’s Representations
	
39

	
 
	
6.4
	
Definition
of Seller’s Knowledge
	
39

	
 
	
6.5
	
Representations
and Warranties of Purchaser
	
39

	
 
	
ARTICLE
VII
	
OPERATION
OF THE PROPERTY
	
42

	
 
	
7.1
	
Leases
and Property Contracts
	
42

	
 
	
7.2
	
General
Operation of Property
	
42

	
 
	
7.3
	
Liens
and Title Defects
	
42

	
 
	
7.4
	
Tax
Appeals
	
43

	
 
	
7.5
	
Westway
Village Repair Work
	
44

	
 
	
ARTICLE
VIII
	
CONDITIONS
PRECEDENT TO CLOSING
	
45

	
 
	
8.1
	
Purchaser’s
Conditions to Closing
	
45

	
 
	
8.2
	
Seller’s
Conditions to Closing
	
46

	
 
	
ARTICLE
IX
	
BROKERAGE
	
47

	
 
	
9.1
	
Indemnity
	
47

	
 
	
9.2
	
Broker
Commission
	
48

	
 
	
9.3
	
Texas
Real Estate License Act
	
48

	
 
	
ARTICLE
X
	
DEFAULTS
AND REMEDIES
	
48

	
 
	
10.1
	
Purchaser
Default
	
48

	
 
	
10.2
	
Seller
Default
	
49

	
 
	
ARTICLE
XI
	
RISK
OF LOSS OR CASUALTY
	
50

	
 
	
11.1
	
Major
Damage
	
50

	
 
	
11.2
	
Minor
Damage
	
50

	
 
	
11.3
	
Closing
	
51

	
 
	
11.4
	
Repairs
	
51

	
 
	
ARTICLE
XII
	
EMINENT
DOMAIN
	
51

	
 
	
12.1
	
Eminent
Domain
	
51

	
 
	
ARTICLE
XIII
	
MISCELLANEOUS
	
52

	
 
	
13.1
	
Binding
Effect of Contract
	
52

	
 
	
13.2
	
Exhibits
and Schedules
	
52

	
 
	
13.3
	
Assignability
	
52

	
 
	
13.4
	
Captions
	
52

	
 
	
13.5
	
Number
and Gender of Words
	
52

	
 
	
13.6
	
Notices
	
52

	
 
	
13.7
	
Governing
Law and Venue
	
55

	
 
	
13.8
	
Entire
Agreement
	
55

	
 
	
13.9
	
Amendments
	
55

	
 
	
13.10
	
Severability
	
55

	
 
	
13.11
	
Multiple
Counterparts/Facsimile Signatures
	
55

	
 
	
13.12
	
Construction
	
56

	
 
	
13.13
	
Confidentiality
	
56

	
 
	
13.14
	
Time
of the Essence
	
56

	
 
	
13.15
	
Waiver
	
56

	
 
	
13.16
	
Attorneys’
Fees
	
56

	
 
	
13.17
	
Time
Zone/Time Periods
	
57

	
 
	
13.18
	
1031
Exchange
	
57

	
 
	
13.19
	
No
Personal Liability of Officers, Trustees or Directors of
	
 

	
 
	
 
	
Seller’s
Partners
	
57

	
 
	
13.20
	
No
Exclusive Negotiations
	
57

	
 
	
13.21
	
ADA
Disclosure
	
58

	
 
	
13.22
	
No
Recording
	
58

	
 
	
13.23
	
Relationship
of Parties
	
58

	
 
	
13.24
	
Dispute
Resolution
	
58

	
 
	
13.25
	
AIMCO
Marks
	
59

	
 
	
13.26
	
Non-Solicitation
of Employees
	
59

	
 
	
13.27
	
Survival
	
59

	
 
	
13.28
	
Multiple
Purchasers
	
59

	
 
	
13.29
	
Sellers’
Several Obligations
	
59

	
 
	
13.30
	
Obligation
to Close on all Properties
	
60

	
 
	
13.31
	
Texas
Statutory Utility District Notice for the Woods of
	
60

	
 
	
 
	
Inverness
Property
	
60

	
 
	
13.32
	
Maryland
Critical Area Notice
	
61

	
 
	
13.33
	
Effect
of Partial Termination of Contract
	
62

	
ARTICLE
XIV
	
LEAD-BASED
PAINT DISCLOSURE
	
62

	
 
	
14.1
	
Disclosure
	
62

	
 
	
14.2
	
Consent
Agreement
	
63

								

 

 

 EXHIBITS AND SCHEDULES

 

EXHIBITS

 

Exhibit
A-1 - A-9         Description of
Land

Exhibit
B-1                  
Form of MD Deed

Exhibit
B-2                  
Form of TN Deed

Exhibit
B-3                  
Form of TX Deed

Exhibit
B-4                  
Form of VA Deed

Exhibit
C         
            Form of Bill
of Sale

Exhibit
D                     
Form of General Assignment

Exhibit
E                      
Form of Lease Assignment

Exhibit
F                      
Form of Vendor Terminations

Exhibit
G                     
Form of Tenant Notice Letters

Exhibit
H                     
Lead Paint Disclosure

Exhibit
I                       
AIMCO Loan Note

Exhibit
J                      
AIMCO Loan Security Instrument

Exhibit
K                     
AIMCO Loan Assignment of Lease and Rents

Exhibit
L                      
AIMCO Loan Non-Recourse Carveout Guaranty

Exhibit
M                    
AIMCO Loan Environmental Indemnity Agreement

Exhibit
N                     
Intentionally Omitted

Exhibit
O                     
Assignment of HAP Contract

 

SCHEDULES

 

Schedule
1                  
Seller Information Schedule 

Schedule
2                  
Defined Terms

Schedule
3      
            Excluded
Fixtures and Tangible Personal Property

Schedule
4                  
List of Materials

 

 

PURCHASE AND SALE CONTRACT

THIS
PURCHASE AND SALE CONTRACT (this “Contract”) is entered
into as of the 25th day of September, 2009 (the “Effective
Date”), by the selling parties identified on Schedule 1 (the
“Seller Information Schedule”) having an address at 4582 South
Ulster Street Parkway, Suite 1100, Denver, Colorado 80237 (individually a
“Seller” and collectively “Sellers”), and Standard Portfolios LLC, a Delaware
limited liability company, having an address c/o Grant, Genovese & Baratta,
LLP, Attention: Michael J. Genovese, 2030 Main Street, Suite 1600, Irvine,
California 92614 (“Purchaser”).

NOW,
THEREFORE, in consideration of mutual covenants set forth herein, Sellers and
Purchaser hereby agree as follows:

RECITALS

A.                
Each Seller owns the real estate commonly known as and identified by the
“Community Name” listed on the Seller Information Schedule and as more
particularly described in Exhibits A-1 to A-9 attached hereto and made a
part hereof, and the improvements thereon.

B.                
Purchaser desires to purchase, and each Seller desires to sell, the land,
improvements and certain associated property described in this Contract on the
terms and conditions set forth below.

ARTICLE I
DEFINED
TERMS

Unless
otherwise defined herein, any term with its initial letter capitalized in this
Contract shall have the meaning set forth in this Schedule 2
attached hereto and made a part hereof.

ARTICLE II
PURCHASE AND
SALE, PURCHASE PRICE & DEPOSIT

2.1       Purchase and
Sale.

 
Each Seller agrees to sell and convey its Property listed on the Seller
Information Schedule to Purchaser and Purchaser agrees to purchase such Property
from each Seller, all in accordance with the terms and conditions set forth in
this Contract.

2.2       Purchase Price and
Deposit.

 
The purchase price for each Property is set forth in the Seller Information
Schedule (the “Purchase Price”).  The Purchase Price for each
Property shall be payable by Purchaser as follows:

2.2.1     
Concurrently with the execution of this Contract, Purchaser shall deliver to
Stewart Title Guaranty Company, c/o Wendy Howell, National Commercial Closing
Specialist, 1980 Post Oak Boulevard, Suite 610, Houston, TX 77056, (tel)
800-729-1906, (fax) (713) 552-1703 (“Escrow Agent” or “Title
Insurer”) an initial deposit (the “Initial Deposit”) of
Two Million Five Hundred Thousand  Dollars ($2,500,000.00) by wire transfer
of immediately available funds (“Good Funds”).  The
Allocated Initial Deposit Amount for each Property is set forth in the Seller
Information Schedule.  Further, Sellers and Purchaser agree that the amount of One Hundred Dollars ($100.00) (the
"Independent Contract Consideration") has been paid by Purchaser
to Seller concurrently with the deposit into escrow of the Initial Deposit, as
consideration for Sellers' execution and delivery of this Contract and for
Purchaser's rights of review, inspection and termination set forth herein. 
The Independent Contract Consideration is independent of any other consideration
or payment provided for in this Contract and, notwithstanding anything to the
contrary herein, is non-refundable in all events whatsoever.

2.2.2      On or before the day that
the Feasibility Period expires, Purchaser shall deliver to Escrow Agent an
additional deposit (the “Additional Deposit”) of Seven Hundred
Thousand  Dollars ($700,000.00) by wire transfer of Good Funds.  The
Allocated Additional Deposit Amount for each Property is set forth in the
Seller Information Schedule.

2.2.3      Provided that the Loan
Assumption and Release has occurred for a particular Assumption Property, then
at the Closing Purchaser shall, with respect to such Assumption Property,
receive a credit against the Purchase Price for such Assumption Property in the
amount of the outstanding principal balance of the Note applicable to such
Assumption Property, together with all accrued but unpaid interest (if any)
thereon, as of the Closing Date (the "Loan Balance"). 

2.2.4      The balance of the
Purchase Price for each Property shall be paid to and received by Escrow Agent
by wire transfer of Good Funds no later than 1:00 p.m. on the Closing Date
applicable to each such Property or at such earlier time if required by the
Seller’s lender for the applicable Property.

2.2.5     
The allocations of Purchase Prices for the Properties set forth on the Seller
Information Schedule have been established by Purchaser, and Seller has not, in
any way, influenced such allocations among the Properties.

2.3       Escrow Provisions
Regarding Deposit.

2.3.1     
Escrow Agent shall hold the Deposit and make delivery of the Deposit to the
party entitled thereto under the terms of this Contract.  Escrow Agent
shall invest the Deposit in such short-term, high-grade securities,
interest-bearing bank accounts, money market funds or accounts, bank
certificates of deposit or bank repurchase contracts as Escrow Agent, in its
discretion, deems suitable, and all interest and income thereon shall become
part of the Deposit and shall be remitted to the party entitled to the Deposit
pursuant to this Contract.

2.3.2      Escrow Agent shall hold
the Allocated Deposit Amount for each Property until the earlier to occur of
(i) the date on which Purchaser terminates this Contract in accordance with
the terms of Section 3.2 hereof, (ii) the Closing Date for the applicable
Property, at which time, the Allocated Deposit Amount for such Property shall be
applied against the Purchase Price for such Property or (iii) the date on which
Escrow Agent shall be authorized to disburse such Allocated Deposit Amount for such Property in accordance with the terms
hereof.  The tax identification numbers of the parties shall be furnished
to Escrow Agent upon request.

2.3.3      If prior to the Closing
Date, Purchaser or Sellers' Representative makes a written demand upon Escrow
Agent for payment of the Deposit or any part thereof, Escrow Agent shall give
written notice to the other parties of such demand.  If Escrow Agent does
not receive a written objection from another party to the proposed payment
within ten (10) days after the giving of such notice, Escrow Agent is hereby
authorized to make such payment.  If Escrow Agent does receive such written
objection within such ten (10) day period, Escrow Agent shall continue to hold
such amount until otherwise directed by written instructions from the parties to
this Contract or a final judgment or arbitrator's decision.  However,
Escrow Agent shall have the right at any time to deliver the Deposit (or the
portion thereof in question, as the case may be) and interest thereon, if any,
with a court of competent jurisdiction in the state or commonwealth in which a
Property is located.  Escrow Agent shall give written notice of such
deposit to Sellers' Representative and Purchaser.  Upon such deposit,
Escrow Agent shall be relieved and discharged of all further obligations and
responsibilities hereunder with respect to the Deposit (or the portion thereof
so deposited into court, as the case may be).  Sellers hereby appoint
Sellers' Representative to give and receive notices to Escrow Agent regarding
the Deposit.

2.3.4     
The parties acknowledge that Escrow Agent is acting solely as a stakeholder at
their request and for their convenience, and that Escrow Agent shall not be
deemed to be the agent of any of the parties for any act or omission on its part
unless taken or suffered in bad faith in willful disregard of this Contract or
involving gross negligence.  Sellers and Purchaser jointly and severally
shall indemnify and hold Escrow Agent harmless from and against all costs,
claims and expenses, including reasonable attorney’s fees, incurred in
connection with the performance of Escrow Agent’s duties hereunder, except with
respect to actions or omissions taken or suffered by Escrow Agent in bad faith,
in willful disregard of this Contract or involving gross negligence on the part
of the Escrow Agent.

2.3.5      The parties shall deliver
to Escrow Agent an executed copy of this Contract.  Escrow Agent shall
execute the signature page for Escrow Agent attached hereto which shall confirm
Escrow Agent’s agreement to comply with the terms of Seller’s closing
instruction letter delivered at Closing and the provisions of this
Section 2.3.  Notwithstanding the foregoing,
Escrow Agent's signature hereon shall not be a
prerequisite to the binding nature of this Contract on Purchaser and Sellers,
and the same shall become fully effective upon execution by Purchaser and
Sellers, and the signature of Escrow Agent will not be necessary to amend any
provision of this Contract, other than this Section 2.3.

2.3.6      Escrow Agent, 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.  Further, Escrow Agent agrees to indemnify
and hold Purchaser, Sellers, and their respective attorneys and brokers harmless
from and against any Losses resulting from Escrow Agent’s failure to file the
reports Escrow Agent is required to file pursuant to this section.

ARTICLE III
FEASIBILITY PERIOD

3.1       Feasibility
Period.

 
Subject to the terms of Sections 3.3 and
3.4 and the rights of Tenants under the Leases, from the Effective
Date to and including November 16, 2009 (the “Feasibility
Period”), Purchaser, and its agents, contractors, engineers, surveyors,
attorneys, and employees (collectively, “Consultants”) shall, at
no cost or expense to any Seller, have the right from time to time to enter onto
the Properties to conduct and make any and all customary studies, tests,
examinations, inquiries, inspections and investigations of or concerning the
Properties, review the Materials and otherwise confirm any and all matters which
Purchaser may reasonably desire to confirm with respect to the Properties and
Purchaser’s intended use thereof (collectively, the
“Inspections”).

3.2       Expiration of
Feasibility Period.

 
If any of the matters in Section 3.1 or any other title
or survey matters are unsatisfactory to Purchaser for any reason, or for no
reason whatsoever, in Purchaser’s sole and absolute discretion, then Purchaser
shall have the right to terminate this Contract in its entirety with respect to
all Properties (but not in part with respect to less than all Properties) by
delivering a Termination Notice to Sellers’ Representative and Escrow Agent no
later than 5:00 p.m. on or before the date of expiration of the Feasibility
Period.  If Purchaser provides such Termination Notice, this Contract shall
terminate and be of no further force and effect subject to and except for the
Survival Provisions, and Escrow Agent shall return the Initial Deposit to
Purchaser.  If Purchaser fails to provide Sellers’ Representative with such
Termination Notice prior to the expiration of the Feasibility Period,
Purchaser’s right to terminate under this Section 3.2
shall be permanently waived and this Contract shall remain in full force and
effect, the Deposit shall be non-refundable, except as otherwise provided
herein, and Purchaser’s obligation to purchase the Properties shall be
conditional only as provided in Section 8.1.

3.3       Conduct of
Investigation.

 
Purchaser shall not permit any mechanics’ or materialmens’ liens or any other
liens to attach to any Property by reason of the performance of any work or the
purchase of any materials by Purchaser or any other party in connection with any
Inspections conducted by or for Purchaser.  Purchaser shall give not less
than forty-eight (48) hours’ advance notice to Seller’s Representative prior to
any entry onto its Property and shall permit such Seller to have a
representative present during all Inspections conducted at its Property. 
Purchaser shall take all reasonable actions and implement all protections
reasonably necessary to ensure that all actions taken in connection with the
Inspections, and all equipment, materials and substances generated, used or
brought onto each Property pose no material threat to the safety of persons,
property or the environment.

3.4       Purchaser
Indemnification.

3.4.1     
Purchaser shall indemnify, hold harmless and, if requested by a Seller (in such
Seller’s sole discretion), defend (with counsel reasonably approved by such
Seller) such Seller, together with such Seller’s affiliates, parent and
subsidiary entities, successors, assigns, partners, managers, members,
employees, officers, directors, trustees, shareholders, counsel,
representatives, agents, Property Manager, Regional Property Manager, and AIMCO
(collectively, including such Seller, “Seller’s Indemnified
Parties”), from and against any and all damages, mechanics’ liens,
materialmen’s liens, liabilities, penalties, interest, losses, demands, actions,
causes of action, claims, costs and expenses (including reasonable attorneys’
fees, including the cost of in-house counsel and appeals) (collectively,
“Losses”) arising from or related to Purchaser’s or its
Consultants’ entry onto such Seller’s Property, and any Inspections or other
acts by Purchaser or Purchaser’s Consultants with respect to such Property
during the Feasibility Period or otherwise; provided, however, such indemnity
shall not cover any Loss to the extent arising from Seller’s Indemnified
Parties’ negligence or willful misconduct or any preexisting latent physical or
environmental conditions discovered by Purchaser in connection with its
investigations as long as Purchaser immediately ceases its investigations upon
discovering such latent condition and takes reasonable steps not to exacerbate
such condition.

3.4.2      Notwithstanding anything
in this Contract to the contrary, Purchaser shall not be permitted to perform
any invasive tests on any Property without Sellers’ Representative’s prior
written consent, which consent may be withheld in Sellers’ Representative’s sole
discretion.  Further, Sellers’ Representative shall have the right, without
limitation, to disapprove any and all entries, surveys, tests (including,
without limitation, a Phase II environmental study of its Property),
investigations and other matters that in such Sellers’ Representative’s
reasonable judgment could result in any injury to its Property or breach of any
contract, or expose the applicable Seller to any Losses or violation of
applicable law, or otherwise adversely affect such Property or such Seller’s
interest therein; provided, however, each Seller hereby expressly consents to
Purchaser's performance of a Phase I environmental study of the applicable
Property (to be conducted by an environmental engineer reasonably acceptable to
Seller's Representative) and an ACM (asbestos containing material) study (to be
conducted by an environmental engineer reasonably acceptable to Seller's
Representative) in connection therewith, but only to the extent customarily
performed in connection with a Phase I environmental study; and, provided,
further, however, if the Phase I for any Property concludes that a Phase II is
recommended, but the applicable Seller refuses permission for such Phase II (in
such Seller's sole and absolute discretion), Purchaser may terminate this
Contract pursuant to Section 3.2 prior to the expiration of the
Feasibility Period.  Purchaser shall use reasonable efforts to minimize
disruption to Tenants in connection with Purchaser’s or its Consultants’
activities pursuant to this Section.  No consent by Sellers’ Representative
to any such activity shall be deemed to constitute a waiver by the applicable
Seller or assumption of liability or risk by such Seller.  Purchaser hereby
agrees to restore, at Purchaser’s sole cost and expense, each Property
substantially to the same condition existing immediately prior to Purchaser’s exercise of its rights pursuant to this
Article III.  Purchaser shall maintain and cause its third
party consultants to maintain (a) casualty insurance and commercial general
liability insurance with coverages of not less than One Million Dollars
($1,000,000.00) for injury or death to any one person and Three Million Dollars
($3,000,000.00) for injury or death to more than one person and One Million
Dollars ($1,000,000.00) with respect to property damage, and (b) worker’s
compensation insurance for all of their respective employees in accordance with
the law of the state(s) or commonwealth(s) in which the Properties are
located.  Purchaser shall deliver proof of the insurance coverage required
pursuant to this Section 3.4.2 to Sellers’
Representative (in the form of a certificate of insurance) prior to Purchaser’s
or Purchaser’s Consultants’ entry onto any of the Properties.  

3.5       Property
Materials.

3.5.1      Within ten (10) days
after the Effective Date, and to the extent the same exist and are in a Seller’s
possession or reasonable control (subject to
Section 3.5.2), and have not been heretofore provided
by a Seller to Purchaser, Seller agrees to make the documents set forth on
Schedule 4 (together with any other documents or information
provided by Sellers or their agents to Purchaser with respect to the Property,
the “Materials”) relating to its Property available at its
Property for review and copying by Purchaser at Purchaser’s sole cost and
expense.  In the alternative, at a Seller’s option and within the foregoing
time period, such Seller may deliver some or all of its Materials to Purchaser,
or make the same available to Purchaser on a secure web site (Purchaser agrees
that any item to be delivered by a Seller under this Contract shall be deemed
delivered to the extent available to Purchaser on such secured web site). 
To the extent that Purchaser determines that any of the Materials have not been
made available or delivered to Purchaser pursuant to this
Section 3.5.1, Purchaser shall notify Sellers’
Representative and Sellers’ Representative shall use commercially reasonable
efforts to deliver the same to Purchaser within five (5) Business Days after
such notification is received by such Seller; provided, however, that under no
circumstances will the Feasibility Period be extended and Purchaser’s sole
remedy will be to terminate this Contract pursuant to
Section 3.2.

3.5.2      In providing the
Materials to Purchaser, other than Seller’s Representations, each Seller makes
no representation or warranty, express, written, oral, statutory, or implied,
and all such representations and warranties are hereby expressly excluded and
disclaimed.  All Materials are provided for informational purposes only
and, together with all Third-Party Reports, shall be returned by Purchaser to
all applicable Sellers or the destruction thereof shall be certified in writing
by Purchaser to Sellers’ Representative as a condition to return of the Deposit
to Purchaser if this Contract is terminated for any reason.  Recognizing
that the Materials delivered or made available by Sellers pursuant to this
Contract may not be complete or constitute all of such documents which are in a
Seller’s possession or control, but are those that are readily and reasonably
available to such Seller, Purchaser shall not in any way be entitled to rely
upon the completeness or accuracy of the Materials and
will instead in all instances rely exclusively on its own Inspections and
Consultants with respect to all matters which it deems relevant to its decision
to acquire, own and operate the Properties. 

3.5.3     
In addition to the items set forth on Schedule 4, no later than five (5)
Business Days after the Effective Date, each Seller shall deliver to Purchaser
(or otherwise make available to Purchaser as provided under
Section 3.5.1) the most recent rent roll and security
deposit ledger for the applicable Property, which rent roll and security deposit
ledger shall list the monthly base rent, Lease expiration date and unapplied
security deposit for such Property and is that which each Seller uses in the
ordinary course of operating its Property (collectively, the “Rent
Rolls”). Sellers make no representations or warranties regarding the
Rent Rolls other than the express representation set forth in
Section 6.1.10.  

3.5.4      In addition to the items
set forth on Schedule 4, no later than 5 Business Days after the
Effective Date, and to the extent same have not been heretofore provided by a
Seller to Purchaser, Seller shall deliver to Purchaser (or otherwise make
available to Purchaser as provided under Section 3.5.1)
a list of all current Property Contracts for the applicable Property (the
“Property Contracts Lists”).  Sellers make no representations
or warranties regarding the Property Contracts Lists other than the express
representations set forth in Section 6.1.11.

3.6       Property
Contracts.

 
On or before the expiration of the Feasibility Period, Purchaser may deliver
written notice to each Seller (a “Property Contracts Notice”) specifying
any Property Contracts of such Seller which Purchaser desires to terminate at
the Closing (the “Terminated Contracts”); provided that (a) the effective
date of such termination on or after Closing shall be subject to the express
terms of such Terminated Contracts, (b) if any such Property Contract cannot by
its terms be terminated at Closing, it shall be assumed by Purchaser and not be
a Terminated Contract, and (c) to the extent that any such Terminated Contract
requires payment of a penalty, premium, or damages, including liquidated
damages, for cancellation, Purchaser shall be solely responsible for the payment
of any such cancellation fees, penalties, or damages, including liquidated
damages.  If Purchaser fails to deliver a Property Contracts Notice to a
Seller on or before the expiration of the Feasibility Period, there shall be no
Terminated Contracts with respect to such Seller (or its Property) and Purchaser
shall assume all Property Contracts of such Seller at the Closing.  If
Purchaser delivers the Property Contracts Notice to Seller on or before the
expiration of the Feasibility Period, then simultaneously therewith, Purchaser
shall deliver to Seller a vendor termination notice (in the form attached hereto
as Exhibit F) for each Terminated Contract informing the vendor(s) of the
termination of such Terminated Contract as of the Closing Date (subject to any
delay in the effectiveness of such termination pursuant to the express terms of
each applicable Terminated Contract (the “Vendor Terminations”). 
Seller shall sign the Vendor Terminations prepared by Purchaser, and deliver
them to all applicable vendors.  To the extent that any Property Contract
to be assigned to Purchaser requires vendor consent, then, prior to the Closing,
Purchaser may attempt to obtain from each applicable vendor a consent (each a
“Required Assignment Consent”) to such assignment.  Purchaser shall
indemnify, hold harmless and, if requested by the applicable Seller (in such
Seller’s sole discretion), defend (with counsel approved by such Seller) such Seller’s Indemnified Parties from and against any and all
Losses arising from or related to Purchaser’s failure to obtain any Required
Assignment Consent.  Notwithstanding the foregoing, at Closing, each Seller
shall, at its sole cost and expense, terminate any property management contract
affecting such Seller’s Property.

ARTICLE IV
TITLE

4.1       Title Documents.

4.1.1     
Purchaser acknowledges that prior to the Effective Date, Purchaser has received
from Escrow Agent, and has reviewed, a commitment for owner’s title insurance
for each Property, as more specifically identified with regard to each Property
on the Seller Information Schedule (each, a "Title Commitment"), to
provide an owner’s title insurance policy for such Seller's Property using the
current policy jacket customarily provided by the Title Insurer in an amount
equal to such Property's Purchase Price (the "Title Policy"), together
with copies of all instruments identified as exceptions therein (together with
the Title Commitment, referred to herein as the "Title Documents").
 

4.1.2     
With respect to the Chimneys of Cradlerock Property, the Lazy Hollow Property,
the Spyglass Property and the Hunter’s Chase Property, Purchaser shall be solely
responsible for payment of all title insurance premiums and all other costs
relating to procurement of the Title Commitment, the Title Policy and any
requested endorsements.  

4.1.3     
With respect to the Arbours of Hermitage Property, the Hillmeade Property, the
Parktown Townhouse Property, the Westway Village Property and the Woods of
Inverness Property, (i) Seller shall be responsible only for payment of the base
premium for the Title Policy and (ii) Purchaser shall be solely responsible for
payment of all other costs relating to procurement of the Title Commitment, the
Title Policy, and any requested endorsements.

4.2       Survey.

 
Purchaser acknowledges that prior to the Effective Date, each Seller has
delivered to Purchaser a copy of the existing survey of each Property as more
specifically identified with regard to each Property on the Seller Information
Schedule (each, an "Existing Survey").  At Purchaser's
request, Sellers have ordered new or updated surveys for the Properties (the
"New Surveys", and together with the Existing Surveys, the
"Surveys").  Purchaser and the Sellers shall split evenly the
costs for the New Surveys.

4.3       Objection and
Response Process/Permitted Exceptions. 

4.3.1     
On or before November 1, 2009 (the “Objection Deadline”), Purchaser
shall, on a Property-by-Property basis, give written notice (the “Objection
Notice”) to the attorneys for Sellers of any matter set forth in any Title
Documents and Surveys to which Purchaser objects (the
“Objections”).  If Purchaser fails to tender an Objection Notice
with respect to a Property on or before the Objection Deadline, Purchaser shall
be deemed to have approved and irrevocably waived any
objections to any matters covered by the Title Documents and the Survey for such
Property.  On or before November 10, 2009 (the “Response Deadline”),
a Seller who has received an Objection Notice may, in such Seller’s sole
discretion, give Purchaser notice (the “Response Notice”) of those
Objections which such Seller is willing to cure (or cause the Title Insurer to
omit as an exception to title insurance coverage), if any, Sellers shall be
entitled to reasonable adjournments of the Closing Date to cure any Objections
applicable to any Seller.  If a Seller fails to deliver a Response Notice
by the Response Deadline, such Seller shall be deemed to have elected not to
cure or otherwise resolve any matter set forth in the Objection Notice.  If
Purchaser is dissatisfied with any Response Notice or lack of any Response
Notice, Purchaser may, as its exclusive remedy, exercise its right to terminate
this Contract prior to the expiration of the Feasibility Period in accordance
with the provisions of Section 3.2.  If Purchaser
fails to timely exercise such right, Purchaser shall be deemed to accept the
Title Documents and Survey with resolution, if any, of the Objections set forth
in the Response Notice (or if no Response Notice is tendered, without any
resolution of the Objections) and without any reduction or abatement of the
Purchase Price.

4.3.2     
Purchaser shall purchase and accept title to the Properties subject to the
following, all of which shall be deemed
“Permitted Exceptions”:

4.3.2.1  
(i) All matters shown in the Title Documents and the Survey for such Property,
other than those Objections, if any, which (a) the applicable Seller has agreed
to cure (or otherwise resolve) pursuant to the Response Notice under
Section 4.3.1, or (b) the Title Insurer shall be
willing to omit as exceptions to coverage or except with affirmative insurance
(at no cost to Purchaser) against collection out of or enforcement against the
Property with respect to any lender’s mortgage insurance policy, (ii) the
standard exceptions and provisions contained in the form of insuring agreement
employed by the Title Insurer, (iii) the standard exception regarding the rights
of parties in possession which shall be limited to those parties in possession
pursuant to the Leases, (iv) the standard exception pertaining to taxes which
shall be limited to taxes and assessments payable in the year in which the
Closing occurs and subsequent taxes and assessments and (v) any exceptions and
matters that are approved, waived or deemed to have been approved or waived by
Purchaser under this Contract;

                                               
4.3.2.2 All Leases;

4.3.2.3
With respect to any Assumption Property, its Assumed Encumbrances;

4.3.2.4
With respect to the Chimneys of Cradlerock Property, the HAP Contract;

4.3.2.5 Applicable zoning and governmental regulations and
ordinances; and

4.3.2.6
Any defects in or objections to title to such Property, or title exceptions or
encumbrances, arising by, through or under Purchaser.

4.4       Subsequently
Disclosed Exceptions.

 
If at any time after the expiration of the Feasibility Period, an update to any
Title Commitment or Existing Survey discloses any additional item that
materially adversely affects title to the applicable Property which was not
disclosed on any version of, or update to, the Title Commitment or Existing
Survey delivered to Purchaser prior to the expiration of the Feasibility Period
(the “New Exception”), Purchaser shall have a period of five (5) Business
Days from the date of its receipt of such update (the “New Exception Review
Period”) to review and notify the applicable Seller in writing of
Purchaser’s approval or disapproval of the New Exception.  If Purchaser
disapproves of the New Exception, the applicable Seller may, in that Seller’s
sole discretion, notify Purchaser as to whether it is willing to cure the New
Exception.  If such Seller elects to cure (or cause the Title Insurer to
omit as an exception to title insurance coverage) the New Exception, that Seller
shall be entitled to reasonable adjournments of the Closing Date to cure the New
Exception.  If such Seller fails to deliver a notice to Purchaser within
three (3) days after the expiration of the New Exception Review Period, that
Seller shall be deemed to have elected not to cure the New Exception.  If
Purchaser is dissatisfied with such Seller’s response, or lack thereof,
Purchaser may, as its exclusive remedy elect either: (i) to terminate this
Contract with respect to the Property subjected to such New Exception only by
delivering a Termination Notice to Sellers’ Representative or (ii) to waive the
New Exception and proceed with the transactions contemplated by this Contract,
in which event Purchaser shall be deemed to have approved the New
Exception.  If Purchaser fails to notify the Sellers’ Representative of its
election to terminate this Contract in accordance with the foregoing sentence by
the later of (a) the end of the Feasibility Period and (b) the date which is six
(6) days after the expiration of the New Exception Review Period, Purchaser
shall be deemed to have elected to approve and irrevocably waive any objections
to the New Exception.  If Sellers’ Representative receives a Termination
Notice pursuant to this Section 4.4, then the provisions of Section
13.33 shall apply to the Property with respect to which this Contract has
been so terminated.  

4.5       Existing Deed of
Trust or Mortgage.

 
It is understood and agreed that, other than the Assumed Deeds of Trust, any
deeds of trust and/or mortgages which encumber the Properties (collectively, a
“Deed of Trust”) shall not be deemed Permitted Exceptions for such
Property, whether Purchaser gives further written notice of such or not, and
shall be paid off, satisfied, discharged and/or cured from proceeds of the
Purchase Price at Closing.

4.6       Assumed
Loans.

 
This Section 4.6 applies only to the Assumption
Properties.

4.6.1     
Purchaser recognizes and agrees that, in connection with the Loan on an
Assumption Property made by Lender, such Assumption Property is encumbered by
the Assumed Deed of Trust and the Assumed Encumbrances.  The Loan is
evidenced by the Note applicable to such Assumption Property.  Prior to the
Effective Date and subject to the provisions of Section 3.5.2, each
Seller of an Assumption Property has made available to
Purchaser copies of the Assumed Loan Documents which are in such Seller’s
possession or reasonable control.

4.6.2      Purchaser agrees that, at
the Closing, (a) Purchaser shall assume the applicable Seller’s obligations
under the Note and all of the other applicable Assumed Loan Documents and accept
title to each Assumption Property subject to the Assumed Deed of Trust and the
Assumed Encumbrances applicable to such Assumption Property, and (b) the
applicable Lender shall release the applicable Seller, as well as any guarantors
and other obligated parties under the Assumed Loan Documents, from all
obligations under the Assumed Loan Documents (and any related guarantees or
letters of credit), including, without limitation, any obligation to make
payments of principal and interest under the applicable Note (collectively, the
foregoing (a) and (b) referred to herein as the “Loan Assumption and
Release”).  Purchaser acknowledges and agrees that (x) certain of
the provisions of the Assumed Loan Documents may have been negotiated for the
exclusive benefit of the applicable Seller, AIMCO or their respective affiliates
(the “Specific AIMCO Provision”), and (y) unless the Lender
otherwise agrees in such Lender’s sole and arbitrary discretion, Purchaser will
not be permitted to assume the benefit of the Specific AIMCO Provisions and the
same shall be of no further force or effect from and after the Closing
Date.

4.6.3      Purchaser further
acknowledges that the Assumed Loan Documents require the satisfaction by
Purchaser of certain requirements as set forth therein to allow for the Loan
Assumption and Release.  Accordingly, Purchaser, at its sole cost and
expense and within 20 days after the Effective Date, but in no event later than
October 1, 2009 (the “Submittal Deadline”), shall use commercially
reasonable efforts to satisfy the requirements set forth in the Assumed Loan
Documents to allow for each Loan Assumption and Release, including, without
limitation, submitting a substantially complete application to the applicable
Lender for assumption of each Loan together with all documents and information
required in connection therewith (the “Loan Assumption
Application”).  Purchaser agrees to provide Sellers’ Representative
with a copy of each Loan Assumption Application no later than the Submittal
Deadline and shall provide evidence of its submission to each Lender on or
before the Submittal Deadline.  Purchaser acknowledges and agrees that
Purchaser is solely responsible for the preparation and submittal of each Loan
Assumption Application, including the collection of all materials, documents,
certificates, financials, signatures, and other items required to be submitted
to such Lender in connection with each Loan Assumption Application.

4.6.4     
Purchaser shall comply with Lender’s assumption guidelines in connection with
the Loan Assumption and Release and, if required by the Lender, Purchaser shall
cause such person or entity reasonably acceptable to the Lender, to execute and
deliver a “non-recourse carve-out” guaranty and environmental indemnity in favor
of Lender.  Purchaser shall be responsible, at its sole cost and expense,
for correcting and re-submitting any deficiencies noted by such Lender in
connection with a Loan Assumption Application no later than five (5) Business Days after notification from such Lender of such
deficiency.  Purchaser also shall provide Sellers’ Representative with a
copy of any correspondence from a Lender with respect to a Loan Assumption
Application no later than five (5) Business Days after receipt of such
correspondence from such Lender.  Purchaser acknowledges that a Lender’s
assumption guidelines may not be consistent with the provisions of the
applicable Assumed Loan Documents concerning the Loan Assumption and
Release.  Purchaser shall coordinate with such Lender to comply with the
appropriate provisions of both the applicable Assumed Loan Documents and such
Lender’s assumption guidelines in order to allow for the Loan Assumption and
Release.

4.6.5      Purchaser shall pay all
fees and expenses (including, without limitation, all servicing fees and
charges, transfer fees, indebtedness taxes, assumption fees, title fees,
endorsement fees, and other fees to release each Seller of all liability under a
Loan) imposed or charged by the Lender or its counsel (such fees and expenses
collectively being referred to as the “Assumption Lender Fees”),
in connection with each Loan Assumption Application and each Loan Assumption and
Release.  The provisions of this Section 4.6.5
shall survive the termination of this Contract and the Closing.

4.6.6      There are currently no
reserves, impounds and other accounts held by a Lender in connection with each
Loan.  Purchaser shall be responsible for funding any new or additional
reserves, impounds or accounts required by a Lender to be maintained by
Purchaser in connection with each Loan after the Loan Assumption and Release
(the “Required Loan Fund Amounts”).

4.6.7     
Purchaser agrees promptly to deliver to each Lender all documents and
information required by the Assumed Loan Documents, and such other information
or documentation as such Lender reasonably may request, including, without
limitation, financial statements, income tax returns and other financial
information for Purchaser and any required guarantor.  Each Seller agrees
that it will cooperate with Purchaser and the applicable Lender, at no cost or
expense to such Seller, in connection with Purchaser’s application to Lender for
approval of each applicable Loan Assumption and Release.

4.6.8     
No later than ten (10) days after the Effective Date, Purchaser shall order a
Phase I Environmental study and property condition report for each Assumption
Property (each prepared by engineers and/or consultants reasonably acceptable to
Sellers’ Representative and Lender), and covenants that such Phase I
Environmental study and property condition report shall be delivered to Sellers’
Representative and Lender no later than ten (10) days prior to the Closing Date
in connection with and as a precondition to a Loan Assumption and Release for
each Assumption Property.

4.6.9     
If (a) Purchaser complies in all material respects with its obligations under
this Contract (including this Section 4.6) and the requirements of each
of the Assumed Loan Documents in connection with obtaining the Loan Assumption and Release for each Assumption Property, (b)
Purchaser uses commercially reasonable efforts to diligently obtain the Loan
Assumption and Release for each Assumption Property, and (c) prior to the
Closing Date, Purchaser does not obtain the consent of the Lender to the Loan
Assumption and Release for an Assumption Property, then Purchaser shall promptly
deliver a Termination Notice to Sellers’ Representative stating that Purchaser
has been unable to obtain the Loan Assumption and Release for one or more of the
Assumption Properties identified in such Termination Notice. Upon receipt by
Sellers’ Representative of such Termination Notice, the Contract shall
automatically be deemed terminated with respect to each Assumed Property
identified in such Termination Notice.  The provisions of Section
13.33 shall apply to each Assumption Property with respect to which this
Contract has been so terminated. 

4.6.10   
Purchaser shall be in default hereunder if, after the expiration of the
Feasibility Period, Purchaser fails to use commercially reasonable efforts to
diligently obtain Lender's consent to the Loan Assumption and Release for each
Assumption Property.  If such event occurs, then Sellers may terminate this
Contract and the Deposit shall be immediately released by the Escrow Agent to
Sellers.

4.7       Purchaser’s
Financing Contingency.

 
The terms of this Section 4.7 apply only to the
Lazy Hollow Property and the Hillmeade Property (collectively, the
“Purchaser’s Loan Properties” and, each a “Purchaser Loan
Property”).  The obligations of Purchaser under this Contract are
conditioned upon an institutional mortgage lender (“Purchaser’s
Lender”) agreeing to make (A) a second mortgage loan to Purchaser on the
Lazy Hollow Property in the amount of Four Million Four Hundred Thousand 
Dollars ($4,400,000.00) and (B) a second mortgage loan to Purchaser on the
Hillmeade Property in the amount of One Million Four Hundred Thousand 
Dollars ($1,400,000.00) (each a “Purchaser’s Loan” and
collectively “Purchaser’s Loans”).  Each Purchaser’s Loan
shall (i) be secured by a second mortgage on such Property Loan Property, (ii)
have a fixed interest rate not to exceed six and three quarters percent (6.75%),
(iii) be co-terminus with the first mortgage loan securing such Property Loan
Property and (iv) otherwise be on commercially reasonably terms.  Purchaser shall (a) make one or more applications to
Purchaser’s Lender for Purchaser’s Loans (collectively, the “Mortgage Loan
Application”), (b) furnish accurate and complete information on
Purchaser and any guarantor, as required, (c) pay all reasonable fees, points
and charges required in connection with such Mortgage Loan Application and
loans, (d) pursue such Mortgage Loan Application in good faith and with
reasonable diligence, (e) cooperate in good faith with Purchaser’s Lender
to the end of securing Purchaser’s Loans, and (f) if required by Purchaser’s
Lender, cause (x) such person or entity reasonably acceptable to Purchaser’s
Lenderto execute and deliver a “non-recourse carve-out” guaranty and
environmental indemnity in favor of Purchaser’s Lender and (y) such funds
to be escrowed for real estate taxes, insurance and replacement reserves in
amounts reasonably determined by Purchaser’s Lender for loans on multi-family
property in the County and State which are similar in type, age and condition as
such Purchaser Loan Property.  Purchaser
acknowledges and agrees that Purchaser is solely responsible for the preparation
and submittal of the Mortgage Loan Application, including the collection of all
materials, documents, certificates, financials, signatures, and other items
required to be submitted to Purchaser’s Lender in
connection with the Mortgage Loan Application.  Purchaser shall be
responsible at its sole cost and expense for correcting and re-submitting any
deficiencies reasonably noted by Purchaser’s Lender in connection with the
Mortgage Loan Application no later than (5) Business Days after notification
from Purchaser’s Lender of such deficiency.  Provided that Purchaser’s
Lender issues a commitment in accordance with the terms of this Section
4.7, Purchaser shall execute and accept the commitment of Purchaser’s Lender
when issued, shall comply with all reasonable requirements of such
commitment and shall promptly notify Seller upon Purchaser’s execution of such
commitment.  If, notwithstanding Purchaser’s
compliance with the provisions of this Section 4.7, Purchaser’s Lender
fails to issue a loan commitment for a Purchaser Loan Property in accordance
with the terms of this Section 4.7 on or before the Closing Date,
then Purchaser shall have the right to terminate this Contract for such
Purchaser Loan Property only by delivering a Termination
Notice to Sellers’ Representative.  If Purchaser elects to terminate this
Contract with respect to such Purchaser Loan Property, then the provisions of
Section 13.33 shall apply with respect to such Purchaser Loan Property.

 

4.8       AIMCO Loan.

 
Subject to the terms of Section 4.8.6 below, the terms of this Section
4.8 apply only to the Hillmeade Property and the Lazy Hollow Property (each
an “AIMCO Loan Property”, and collectively, the “AIMCO Loan
Properties”).

4.8.1     
At the Closing, and subject to the provisions of Section 4.8.5 below,
Seller shall make, or cause one or more Affiliates of Seller (the entity(ies)
making the AIMCO Loans being herein called, collectively, “AIMCO
Lender”) to make two (2) loans to Purchaser in the aggregate amount of
$3,500,000 (collectively, the “AIMCO Loans”, each an “AIMCO
Loan”), which AIMCO Loans shall be used as follows: (i) a portion of the
AIMCO Loans shall be used to fund a portion of the Purchase Price for the Lazy
Hollow Property and shall be secured by a third mortgage on such Property and
(ii) a portion of the AIMCO Loans shall be used to fund a portion of the
Purchase Price for the Hillmeade Property and shall be secured by a third
mortgage on such Property.  Prior to the expiration of the Feasibility
Period, Seller and Purchaser shall mutually agree on the allocation of the AIMCO
Loans among the AIMCO Loan Properties.

4.8.2     
Each AIMCO Loan shall be made by the AIMCO Lender to Purchaser on the following
terms: (a) monthly payments of interest only shall be due at an interest rate of
six percent (6.0%) per annum during the term of the Aimco Loan, and  (b)
shall have a term of five (5) years. 

4.8.3      At the Closing Purchaser
shall, with respect to each AIMCO Loan, execute and deliver to the AIMCO Lender
the following loan documents (herein collectively called the “AIMCO Loan
Documents”):

(a)     
a promissory note executed by Purchaser in the form attached hereto as
Exhibit I, evidencing such AIMCO Loan; 

(b)     
a security instrument executed by the Purchaser in the form attached hereto as
Exhibit J, securing such AIMCO Loan (the “AIMCO Loan Security
Instrument”); 

(c)      an assignment of leases and
rents executed by the Purchaser in the form attached hereto as Exhibit
K;

(d)     
a non-recourse carveout guaranty executed by such person or entity reasonably
acceptable to AIMCO Lender (the “Guarantor”) in the form annexed
hereto as Exhibit L; 

(e)     
an environmental indemnity agreement executed by the Guarantor in the form
annexed hereto as Exhibit M; 

(f)      
an opinion letter from counsel to Purchaser, in a form reasonably acceptable to
AIMCO Lender, which shall opine to, among other things, the following matters:
(i) the due formation, existence and organization of Purchaser and Guarantor (if
Guarantor is an entity) for such AIMCO Loan, (ii) the power and authority of
Purchaser and Guarantor (if Guarantor is an entity) to execute, deliver, and
perform its obligations under the AIMCO Loan Documents which it is a party to,
(iii) the due execution and delivery by Purchaser and Guarantor of the AIMCO
Loan Documents which it is a party to, (iv) the AIMCO Loan Documents are
enforceable against Purchaser and Guarantor (as applicable) in accordance with
their terms, (v) the execution, delivery and performance by Purchaser and
Guarantor of the AIMCO Loan Documents which it is a party to does not conflict
with or violate any law, rule, regulation or ordinance applicable to Purchaser
and Guarantor (as applicable) and (vi) such AIMCO Loan does not violate the
provisions of the usury laws of the State in which such AIMCO Loan Property is
located; and 

(g)     
such other consents or authorizing documents as the AIMCO Lender may reasonably
request to evidence that the AIMCO Loan Documents have been duly authorized by
Purchaser and the Guarantor.  

4.8.4     
At the Closing Purchaser shall pay all mortgage recording, transfer and grantor
taxes and fees incident to the recording of each AIMCO Loan Security Instrument,
if any, and the filing fees for any financing statements delivered in connection
therewith.  In addition, Purchaser, at its expense, shall at the Closing
obtain for the AIMCO Lender a lender’s policy of title insurance from the Title
Insurer, insuring each AIMCO Loan Security Instrument as a thrid priority lien
on each AIMCO Loan Property (subject only to the Permitted Exceptions). 
Purchaser shall be responsible for all fees and expenses charged by Lender in
connection with the AIMCO Loans (including, without limitation, all fees charged
by the Lender pursuant to the Assumed Loan Documents).  The provisions of
this Section 4.8.4 shall survive the termination of this Contract and the
Closing.  

4.8.5     
From and after the Effective Date, (i) Purchaser, at its sole cost and expense,
shall use commercially reasonable efforts to obtain the consent of the Lender
for each AIMCO Loan Property to the applicable AIMCO Loan and (ii) Seller, at
its sole cost and expense, shall cause AIMCO Lender to use commercially
reasonable efforts to agree with the Lender of each AIMCO Loan Property on a
form of intercreditor agreement (on such terms as are reasonably acceptable to AIMCO Lender) to be entered into at the Closing
of such AIMCO Loan Property.  If, on or before the expiration of the
Feasibility Period, the AIMCO Lender and the Lender of an AIMCO Loan Property
shall fail to agree on the terms of an intercreditor agreement (which
requirement may be waived by the AIMCO Lender in its sole discretion), then the
Seller of such AIMCO Loan Property, by notice to Purchaser given on or before
three (3) Business Days after the expiration of the Feasibility Period, may
elect not to cause the AIMCO Lender to make the AIMCO Loan for such AIMCO Loan
Property to Purchaser.  In such event, Purchaser may, within five (5)
Business Days after the expiration of the Feasibility Period, terminate this
Contract only with respect to such AIMCO Loan Property by delivering a
Termination Notice to Seller’s Representative and the Escrow Agent. 
Further, Seller and Purchaser acknowledge and agree that AIMCO Lender’s making
the AIMCO Loans are expressly conditioned on the following occurring on or
before the Closing of an AIMCO Loan Property (which conditions may be waived by
the AIMCO Lender in its sole discretion):  (A) the Lender for each AIMCO
Loan Property has given its written consent to the applicable AIMCO Loan, and
(B) the Lender is not requiring AIMCO Lender to enter into a so-called
“standstill agreement” (or other agreement of similar import) with such
Lender.  If either (x) such consent of Lender has not been obtained by the
Closing for such AIMCO Loan Property or (y) such Lender is requiring the AIMCO
Lender to enter into a “standstill agreement” (or other agreement of similar
import), then, unless the AIMCO Lender agrees to waive such conditions precedent
set forth in the foregoing clauses (A) and (B), Seller shall not have any
further obligation to cause the AIMCO Lender to make the AIMCO Loans to
Purchaser.  In such event, Purchaser may terminate this Contract only with
respect to such AIMCO Loan Property by delivering a Termination Notice to
Seller’s Representative and the Escrow Agent.  If Purchaser so elects to
terminate this Contract with respect to such AIMCO Loan Property in accordance
with this Section 4.8.5, then (i) this Contract shall terminate for such
AIMCO Loan Property only, and the provisions of Section 13.33 shall apply
with respect to such AIMCO Loan Property.

4.8.6     
Notwithstanding anything to the contrary contained in this Section 4.8,
prior to the expiration of the Feasibility Period, Seller shall have the right,
in Seller’s sole discretion, to replace either AIMCO Loan Property with the
Hunter’s Chase Property.  In such event, (i) the Hunter’s Chase Property
shall be deemed to be an AIMCO Loan Property and (ii) a portion of the AIMCO
Loans shall be used to fund a portion of the Purchase Price for the Hunter’s
Chase Property and shall be secured by a second mortgage on such Property.

4.9       Purchaser
Financing.

 
Except as otherwise provided in (i) Section 4.6.9 above with respect to
the Loan Assumption and Release for the Assumed Properties, (ii) Section
4.7 above with respect to the Purchaser Loans for the Lazy Hollow Property
and the Hillmeade Property and (iii) Section 4.8 with respect to the
AIMCO Loans for the AIMCO Loan Properties, Purchaser assumes full responsibility
to obtain the funds required for settlement, and Purchaser’s acquisition of such
funds shall not be a contingency to the Closing.

4.10     Housing Assistance Program
Vouchers.

 
The terms of this Section 4.10 apply only to the Chimneys of Cradlerock
Property and the Lazy Hollow Property.  Purchaser acknowledges that the HAP
Voucher Contract(s) require(s) the satisfaction by Purchaser of certain
requirements as set forth therein and established by the local housing
authorities (collectively, the “Housing Authority”) to allow for
the HAP Voucher Assumption. Purchaser agrees that, at the Closing, either
(a) Purchaser shall assume all obligations under the HAP Voucher Contracts
and accept title to the applicable Property subject to the same, or (b) the
existing HAP Voucher Contracts shall be terminated, and Purchaser shall enter
into replacement HAP Voucher Contracts which are acceptable to the Housing
Authority (collectively, the foregoing (a) and (b) referred to herein as the
"HAP Voucher Assumption").  Purchaser shall indemnify and
hold the Seller of the Chimneys of Cradlerock Property and the Seller of the
Lazy Hollow Property and the Seller’s Indemnified Parties of such Seller
harmless from and against any and all claims, losses, damages, and expenses
(including reasonable attorneys’ fees) that may be incurred by any of such
Seller and/or any of such Seller’s Indemnified Parties from and after the
Closing Date, in connection with Purchaser’s assumption of the HAP Voucher
Contracts or the failure of Purchaser to enter into a replacement HAP Voucher
Contracts as aforesaid. The terms and provisions of this Section 4.10
shall survive the Closing.

 

4.11     HUD Approval.

 
The terms of this Section 4.11 apply only to the Chimneys of Cradlerock
Property.  

4.11.1    Purchaser
recognizes and agrees that the Chimneys of Cradlerock Property presently is
benefited by the HAP Contract, which shall be deemed a Permitted Exception for
all purposes under this Contract.  Purchaser hereby
acknowledges receipt of a copy of the HAP Contract (subject to Section
3.5.2).

4.11.2    Purchaser agrees that at the Closing,
the Seller of the Chimneys of Cradlerock Property shall assign and Purchaser
shall assume Seller’s rights and obligations under the HAP Contract (the "HAP
Assumption"), and, at the Closing, the Seller of the Chimneys of Cradlerock
Property and Purchaser shall execute and deliver the Assignment of HAP
Contract.  Purchaser further acknowledges that the HAP Contract requires
the satisfaction by Purchaser of certain requirements as set forth therein and
established by HUD to allow for the sale of the Chimney of Cradlerock Property
and the HAP Assumption.

4.11.3    Prior to the
Closing, Purchaser, at its sole cost and expense, shall (i) use commercially
reasonable efforts to diligently obtain HUD Approval and DHCD Approval and (ii)
shall use commercially reasonable efforts to obtain from HUD and/or DHCD (as
applicable) a
renewal of the HAP Contract under Option 2 of the Section 8 Renewal Guide in
accordance with the requirements of HUD Handbook 4350.1, Chapter 7 and
Attachment 5 of the Section 8 Renewal Guide (the “Budget Base Rent Increase
Procedure”) to the maximum rents that can be supported
by such Budget Based Rent Increase Procedure.  In connection
with the foregoing, Purchaser, at its sole cost and expense and no later than
the Submittal Deadline, shall submit (i) a substantially complete HUD
Application in order to request HUD Approval and DHCD Application in order to
request DHCD Approval, including, without limitation, all application documents,
certificates, agreements, information and fees required by
HUD and DHCD to allow for each of their approval of the Seller the Chimney of
Cradlerock Property's assignment and Purchaser's assumption of the HAP Contract
and (ii) a substantially complete application to HUD and/or DHCD (as applicable)
requesting a renewal of the HAP Contract under the Budget Base Rent Increase
Procedure. In connection with seeking a renewal of the HAP Contract under the
Budget Base Rent Increase Procedure, Purchaser agrees that it will agree to such
a renewal for a period of up to five (5) years.  In addition to the
foregoing, (x) Purchaser shall obtain 2530 approval from HUD, and, in addition
to such 2530 approval, shall satisfy all other requirements imposed by HUD field
offices in connection with any other process imposed as a prerequisite to
obtaining HUD Approval, and (y) if the Chimney of Cradlerock Property's Real
Estate Assessment Center physical inspection score is a fifty-nine (59) or below
and the Chimney of Cradlerock Property is involved in an assignment of the HAP
Contract, then the Purchaser shall enter into an agreement with HUD whereby the
Purchaser will hire an independent professional inspector (if an in-house HUD
inspector is unavailable) to inspect all of the Chimney of Cradlerock Property's
units to determine if they meet the Uniform Physical Condition Standards.

4.11.4    Purchaser agrees promptly to deliver
to HUD and DHCD (i) all documents and information required in order to obtain
(x) HUD Approval and DHCD Approval and (y) a renewal of the HAP Contract under
the Budget Base Rent Increase Procedure and (ii) such other information or
documentation as HUD and DHCD reasonably may request, including, without
limitation, financial statements, income tax returns and other financial
information for Purchaser and any required guarantor, materials, documents,
certificates, signatures, and other items.  Purchaser aggress that it shall
be responsible at its sole cost and expense for obtaining (i) a letter from HUD
and DHCD approving the transfer of the Chimneys of Cradlerock Property and
providing final approval of the assignment of the HAP Contract and (ii) the
documents necessary to effectuate a renewal of the HAP Contract under the Budget
Base Rent Increase Procedure. Purchaser agrees to provide Sellers’
Representative with copies of the HUD Application, the DHCD Application and the
application requesting a renewal of the HAP Contract no later than two (2)
Business Days prior to the Submittal Deadline and shall provide evidence of
Purchaser's submission of the HUD Application to HUD, the DHCD Application to
DHCD and the application requesting a renewal of the HAP Contract under the
Budget Base Rent Increase Procedure to HUD and/or DHCD (as applicable) on or
before the Submittal Deadline.  Purchaser shall be responsible at its sole
cost and expense for correcting and re-submitting any deficiencies noted by HUD
or DHCD in connection with their respective applications no later than five (5)
Business Days after notification from HUD or DHCD of such deficiency (as the
case may be).  Purchaser also shall provide Sellers’ Representative with a
copy of any correspondence from HUD with respect to the HUD Application, from
DHCD with respect to the DHCD Application and from HUD and/or DHCD (as
applicable) with respect to the application requesting a renewal of the HAP
Contract under the Budget Base Rent Increase Procedure no later than five (5)
Business Days after receipt of such correspondence
from HUD or DHCD (as the case may be).  Purchaser shall pay all fees and
expenses (including, without limitation, transfer fees, assumption fees, title
fees, endorsement fees, and other fees) imposed or charged by HUD, DHCD or their
counsel in connection with the HUD Application, the HUD Approval, the DHCD
Application and the DHCD Approval and the application requesting a renewal of
the HAP Contract and the approval thereof (which obligation shall survive the
termination of this Contract and the Closing).  Without limiting the
generality of the foregoing, Purchaser shall pay the cost of any physical
inspection report required in connection with obtaining HUD Approval.  The
foregoing obligations of Purchaser shall survive the Closing.

4.11.5   
Notwithstanding anything in this Contract to the contrary, if any residual
receipts account is maintained by the Seller of the Chimneys of Cradlerock
Property (a "Residual Receipts Account") in connection with the HAP
Contract, then the Residual Receipts Account will remain with the Chimneys of
Cradlerock Property following the Closing and Purchaser shall reimburse the
Seller of the Chimneys of Cradlerock Property at the Closing for the amount of
such Residual Receipts Account. There
is currently no Residual Receipts Account maintained by the Seller of the
Chimneys of Cradlerock Property in connection with the HAP Contract.

4.11.6   
No transfer of any interest in the Chimneys of Cradlerock Property shall be
effective prior to HUD Approval and DHCD Approval.  Purchaser will not take
possession of the Chimneys of Cradlerock Property or assume benefits of
ownership of the Chimneys of Cradlerock Property prior to HUD Approval and DHCD
Approval.  Purchaser, its heirs, executors, administrators or assigns,
shall have no right upon any breach by the Seller of the Chimneys of Cradlerock
Property hereunder to seek damages, directly or indirectly, from the Chimneys of
Cradlerock Property, including from any assets, rents, issues or profits
thereof, and Purchaser shall have no right to effect a lien upon the Chimneys of
Cradlerock Property or the rents, issues or profits thereof.

4.11.7   
Purchaser recognizes and agrees that HUD may require that the Assignment of HAP
Contract contain a provision, in accordance with the Memorandum of Beverly J.
Miller, Director, Asset Management, Office of Housing, dated January 6, 2005,
that amends the HAP Contract to include the following additional provisions:

Physical
Conditions Standards and Inspection Requirements.  The Owner shall
comply with the Physical Condition Standards and Inspection Requirements of 24
CFR Part 5, Subpart G, including any changes in the regulation and related
Directives.  In addition, the Owner shall comply with HUD's Physical
Condition Standards of Multifamily Properties of 24 CFR Part 200, Subpart P,
including any changes in the regulation and related Directives.  This
obligation shall apply both during the current term of the HAP Contract and
during each successive renewal term. 

Financial Reporting Standards.  The Owner shall
comply with the Uniform Financial Reporting Standards of 24 CFR Part 5, Subpart
H, including any changes in the regulation and related Directives.  This
obligation shall apply both during the current term of the HAP Contract and
during each successive renewal term. 

4.11.8    Purchaser acknowledges and agrees
that, in connection with HUD Approval, HUD may require the funding of additional
escrows and reserves, including without limitation, additional repair escrows
(collectively, the "Additional Required Escrows").  Purchaser agrees
that, at the Closing, Purchaser shall fund all Additional Required Escrows in
Good Funds and in addition to the Purchase Price for the Chimneys of Cradlerock
Property or any other amount Purchaser is required to pay pursuant to this
Contract.  

4.11.9   
Purchaser and Seller agree to cooperate and to work with HUD and/or DHCD, as
required, to ensure that there is a HAP Contract in place as of Closing.
 Further, Purchaser, for itself and its successors and assigns, covenants
to and agrees with the Seller of the Chimneys of Cradlerock Property that
Purchaser shall maintain the HAP Contract in full force and effect for the term
of the HAP Contract remaining from and after Closing. Purchaser additionally
covenants to use commercially reasonable efforts to diligently obtain approval
from HUD and/or DHCD (as applicable) for the renewal of the HAP Contract assumed
by Purchaser at Closing for at least one (1) year after Closing.  Purchaser
shall promptly provide Seller with copies of any application and correspondence
with HUD or DHCD relating to the renewal or extension of the HAP Contract and
covenants to comply with all HUD and DHCD regulations required to obtain such
renewal or extension, including, but not limited to, undertaking any rent
comparability studies, appraisals or other third party evaluations or analysis
required to renew the HAP Contract.  Purchaser shall indemnify and hold the
Seller of the Chimneys of Cradlerock Property and the Seller’s Indemnified
Parties of the Seller of the Chimneys of Cradlerock Property harmless from and
against any and all claims, losses, damages, and expenses (including reasonable
attorneys’ fees) that may be incurred by the Seller of the Chimneys of
Cradlerock Property and/or any of such Seller’s Indemnified Parties from and
after the Closing Date, in connection with Purchaser’s failure to renew the HAP
Contract assumed by Purchaser at Closing for at least one (1) year after
Closing.  The terms and provisions of this Section 4.11.9 shall
survive the Closing.

4.11.10 
Provided that (a) Purchaser fully complies with its obligations under this
Contract (including this Section 4.11) and (b) prior to the Closing Date,
Purchaser has been unable to obtain HUD Approval and DHCD Approval, then either
Purchaser or Seller shall have the right to give the other party and Escrow
Agent written notice terminating this Contract with respect to the Chimneys of
Cradlerock Property only based solely on the fact that HUD Approval and DHCD
Approval has not been obtained.  If either party elects to terminate this
Contract with respect to the Chimneys of Cradlerock Property pursuant to this
Section 4.11.10, then the provisions of Section 13.33 shall apply
with respect to the Chimneys of Cradlerock Property. 
To the extent necessary and reasonable, the Seller of the Chimneys of Cradlerock
Property will provide authorization to HUD, DHCD or to any other appropriate
federal or state agency, to release to Purchaser copies of the HAP Contract, or
other documents or agreement with HUD or DHCD for Purchaser’s reference in
connection with obtaining HUD Approval and the DHCD Approval.

4.11.11 
(a)  Provided that (i) Purchaser fully complies with its obligations under
this Contract (including this Section 4.11) and the requirements of HUD
and/or DHCD (as applicable in connection with Purchaser’s efforts to obtain a
renewal of the HAP Contract under the Budget Base Rent Increase Procedure), (ii)
Purchaser uses commercially reasonable efforts to diligently obtain a renewal of
the HAP Contract under the Budget Base Rent Increase Procedure and (iii) on or
prior to the Closing Date, Purchaser has not obtained a renewal of, or a
commitment from HUD to renew, the HAP Contract, under the Budget Base Rent
Increase Procedure or otherwise, which renewal does or will result in an
increase in the annual contract rents for Section 8 units at the Chimneys of
Cradlerock Property (the “Chimneys Section 8 Units”) over the annual
contract rents for the Chimneys Section 8 Units in effect as of the Effective
Date, then and in such events, at the Closing Purchaser shall receive a credit
(the “Chimneys Section 8 Credit”) against the Allocated Purchase Price
for the Chimneys of Cradlerock Property in an amount equal to $530,000.00.

(b)       
If on or prior to the Closing Date HUD issues, or commits to issue, a renewal of
the HAP Contract, under the Budget Base Rent Increase Procedure or otherwise,
which renewal does or will result in an increase in the annual contract rents
for the Chimneys Section 8 Units over the annual contract rents for the Chimneys
Section 8 Units in effect as of the Effective Date (such renewal, a “HAP
Contract Renewal”), then at the Closing Purchaser shall receive a credit
against the Allocated Purchase Price for the Chimneys of Cradlerock Property
(which credit shall be in lieu of, and not in addition to, the Chimneys Section
8 Credit) equal to the positive excess, if any of (X) $530,000.00, over (Y) the
product obtained by multiplying (i) the Aggregate Annual Rent Increase Amount
(defined below), by (ii) 2.5.  The “Aggregate Annual Rent Increase
Amount” shall mean an amount equal to (A) the sum of the annual
contract rents for all Chimneys Section 8 Units resulting from the HAP Contract
Renewal, minus (B) the sum of the annual contract rents for all Chimneys Section
8 Units in effect as of the Effective Date.

 

4.11.12 
Seller hereby agrees to indemnify, defend and hold harmless Purchaser from and
against any and all costs, damages, losses, liabilities and expenses (including
reasonable attorneys’ fees) incurred by Purchaser as a result of claims or
causes of action arising out of or relating to Seller’s failure to perform any
of the obligations under the HAP Contract first occurring prior to the date
hereof. Purchaser
hereby agrees to indemnify, defend and hold harmless Seller from and against any
and all costs, damages, losses, liabilities and expenses (including reasonable
attorneys’ fees) incurred by Seller as a result of claims or causes of action
arising out of or relating to Purchaser’s failure to perform any of the
obligations on its part to be performed under the HAP Contract first occurring
from and after the date hereof.  The provisions of
this Section 4.11.12 shall survive the Closing.

 

ARTICLE V
CLOSING

5.1       Closing Date.

5.1.1     
Subject to the terms of subsections 5.1.2 and 5.1.3 hereof, the
Closing shall occur on December 15, 2009 at the time set forth in
Section 2.2.4 through an escrow with Escrow Agent,
whereby Sellers, Purchaser and their attorneys need not be physically present at
the Closing and may deliver documents by overnight air courier or other
means.  

5.1.2     
Notwithstanding anything contained in Section 5.1.1 above to the
contrary, Purchaser shall have the right to accelerate the Closing Date for any
one or more of the Properties to a Business Day prior to December 15, 2009,
provided that (i) the Payoff Properties must close on the same date, and (ii)
Purchaser must deliver a written notice (the “Closing Date Acceleration
Notice”) to Seller of such exercise not later than fifteen (15) days prior
to the date that Purchaser desires to close on such Property(ies).  In
order to be effective, the Closing Date Acceleration Notice must (x) specify the
Property(ies) that Purchaser desires to close on prior to December 15, 2009
(such Properties being herein called the “Early Close Properties”) and
(y) state the new scheduled Closing Date for the Early Close Properties (it
being agreed that “time shall be of the essence” with respect to the obligations
of the parties to be performed on such new scheduled Closing Date for the Early
Close Properties).  If Purchaser timely delivers a Closing Date
Acceleration Notice as aforesaid, then upon the Closing of an Early Close
Property, the Allocated Deposit Amount applicable to such Early Close Property
shall be applied to the Allocated Purchase Price for such Early Close
Property.

5.1.3     
Notwithstanding anything to the contrary contained herein, if required in order
to comply with the requirements of Section 8.2.4, then the Seller of the
Arbours of Hermitage Property shall have the option, by delivering written
notice to Purchaser at least five (5) Business Days prior to the then scheduled
Closing Date of such Property, to extend the Closing Date for such Property to a
Business Day not later than  December 30, 2009. Further, with respect to
each Payoff Property, Seller shall have the option, by delivering written notice
to Purchaser, to extend the Closing Date for a Payoff Property to either the
last Business Day of the month in which the Closing Date for such Payoff
Property otherwise would occur pursuant to this Section 5.1 or the tenth
(10th) day of the month following the month in which the Closing Date
for such Payoff Property would otherwise occur pursuant to this Section
5.1 (or if such tenth (10th) day of the month is not a Business
Day, then the next Business Day thereafter), in connection
with Seller's payment in full of the loan(s) secured by the Deed of Trust.
 

5.1.4     
Notwithstanding anything contained herein to the contrary, the date on which the
Closing is to occur pursuant to this Section 5.1 with respect to any one
or more of the Properties shall be deemed “time of the essence” with respect to
the obligations of both Seller and Purchaser to be performed on such date.

5.2       Seller Closing
Deliveries.

 
No later than one (1) Business Day prior to the Closing Date for a Property, the
applicable Seller shall, with respect to such Property to be conveyed by such
Seller hereunder, deliver to Escrow Agent, each of the following items:

5.2.1      With respect to the
Chimneys of Cradlerock Property, the Lazy Hollow Property and the Spyglass
Property, a Special Warranty Deed in the form attached as
Exhibit B-1 (the “MD Deed”), subject to the Permitted
Exceptions for such Properties.

5.2.2     
With respect to the Arbours of Hermitage Property and the Hillmeade Property, a
Special Warranty Deed in the form attached as Exhibit B-2 (the
“TN Deed”), subject to the Permitted Exceptions for such
Properties.

5.2.3     
With respect to the Parktown Townhouses Property, the Westway Village Property
and the Woods of Inverness Property, a Special Warranty Deed in the form
attached as Exhibit B-3 (the “TX Deed”), subject to
the Permitted Exceptions for such Properties.

5.2.4     
With respect to the Hunter’s Chase Property, a Special Warranty Deed in the form
attached as Exhibit B-4 (the “VA Deed”), subject to
the Permitted Exceptions for such Property.

5.2.5     
A Bill of Sale in the form attached as Exhibit C.

5.2.6      A General Assignment in
the form attached as Exhibit D (the “General
Assignment”).

5.2.7      An Assignment of Leases
and Security Deposits in the form attached as Exhibit E (the
“Leases Assignment”).

5.2.8     
With respect to the Chimneys of Cradlerock Property, an Assignment of HAP
Contract in the form attached hereto as Exhibit O (with such changes as
may be required by HUD and DHCR) (the “Assignment of HAP
Contract”)

5.2.9     
Notification letters to all Tenants at such Property (the “Tenant
Notification Letters”) prepared and executed by Seller in the form
attached hereto as Exhibit G, which shall be delivered to all
Tenants by Seller immediately after Closing.  

5.2.10    The applicable Seller’s closing
statement.

5.2.11   
A title affidavit or an indemnity form reasonably acceptable to such Seller,
which is sufficient to enable Title Insurer to delete the standard pre-printed
exceptions to the title insurance policy to be issued pursuant to the Title
Commitment.

5.2.12   
A certification of such Seller’s non-foreign status pursuant to
Section 1445 of the Internal Revenue Code of 1986, as amended.

5.2.13   
Resolutions, certificates of good standing, and such other organizational
documents as Title Insurer shall reasonably require evidencing such Seller’s
authority to consummate this transaction.

5.2.14    Updated Rent Rolls from each Seller
effective as of a date no more than three (3) Business Days prior to the Closing
Date; provided, however, that the content of such updated Rent Rolls shall in no
event expand or modify the conditions to Purchaser’s obligation to close as
specified under Section 8.1.

5.2.15    Updated Property Contracts Lists
from each Seller effective as of a date no more than three (3) Business Days
prior to the Closing Date; provided, however, that the content of such updated
Property Contracts Lists shall in no event expand or modify the conditions to
Purchaser’s obligation to close as specified under
Section 8.1.

5.2.16   
With respect to the Lazy Hollow Property, the Chimneys of Cradlerock Property
and the Spyglass Property, a Land Instrument Intake Sheet. 

5.2.17   
With respect to the Hunter’s Chase Property, a Virginia Department of Taxation
Nonresident Real Property Owner Registration (Form R-5).

5.2.18   
With respect to an Assumption Property, a countersigned counterpart of an
assumption agreement in connection with the Loan Assumption and Release for such
Assumption Property.

5.2.19   
Such other documents as are reasonably necessary to consummate the transactions
herein contemplated in accordance with the terms of the Contract.

5.3       Purchaser Closing
Deliveries.

 
No later than one (1) Business Day prior to the Closing Date for a Property
(except for the balance of the Purchase Price which is to be delivered at the
time specified in Section 2.2.4), Purchaser shall
deliver to the Escrow Agent (for disbursement to the applicable Seller upon the
Closing) the following items with respect to each Property being conveyed at the
Closing:

5.3.1      The full Purchase Price
for such Property (with, a credit for (x) the Allocated Deposit Amount for such
Property, subject to, and except as otherwise provided in, the terms of
Section 5.1.2 above (y) if such Property is an Assumption Property, the Loan Balance for such Assumption
Property and (z) if such Property is an AIMCO Loan Property, the amount of the
AIMCO Loan for such AIMCO Loan Property), plus or minus the adjustments or
prorations required by this Contract.

5.3.2     
A title affidavit or an indemnity form (pertaining to Purchaser’s activity on
the applicable Property prior to Closing), reasonably acceptable to Purchaser,
which is sufficient to enable Title Insurer to delete the standard pre-printed
exceptions to the title insurance policy to be issued pursuant to the Title
Commitment.

5.3.3     
Purchaser’s closing statement.

5.3.4     
A countersigned counterpart of the General Assignment.

5.3.5     
A countersigned counterpart of the Leases Assignment.

5.3.6     
A countersigned counterpart of the Tenant Notification Letters.

5.3.7     
Any cancellation fees or penalties due to any vendor under any Terminated
Contract as a result of the termination thereof.

5.3.8     
Resolutions, certificates of good standing, and such other organizational
documents as Title Insurer shall reasonably require evidencing Purchaser’s
authority to consummate this transaction.

5.3.9     
With respect to an Assumption Property, all documents, instruments, guaranties,
Assumption Lender Fees, Required Loan Fund Amounts, and other items or funds
required by the applicable Lender to cause the applicable Loan Assumption and
Release, including a countersigned counterpart of an assumption agreement in
connection with the Loan Assumption and Release for such Assumption
Property.

5.3.10   
With respect to each AIMCO Loan Property, (i) the AIMCO Loan Documents, (ii) a
lender’s title insurance policy insuring the lien of each AIMCO Loan Security
Instrument as required by Section 4.8.4 above and (iii) either (x) a
duplicate insurance policy for all Hazard Insurance (as such term is defined in
Section 19(a) of the AIMCO Loan Security Instrument) or (y) an ACORD certificate
of insurance evidencing to the satisfaction of the AIMCO Lender all Hazard
Insurance required under the AIMCO Loan Security Instrument, in either case
naming the AIMCO Lender as an additional insured for all commercial liability
insurance and including a non-contributing, non-reporting mortgagee clause in
favor of the AIMCO Lender with respect to all property damage insurance for such
AIMCO Loan Property.

5.3.11   
With respect to the Chimneys of Cradlerock Property, the HUD Approval, the DHCR
Approval and a countersigned counterpart of the Assignment of HAP Contract.

5.3.12    Such other documents as are
reasonably necessary to consummate the transactions herein contemplated in
accordance with the terms of the Contract.

5.4       Closing Prorations
and Adjustments.

 
The prorations set forth in this Section 5.4 shall be
on a Property-by-Property basis and not among, or between, Properties and shall
not be allocated on an Applicable Share basis.

5.4.1     
General.  With respect to each Property, all normal and customarily
proratable items, including, without limitation, collected rents, operating
expenses, personal property taxes, other operating expenses and fees, shall be
prorated as of the Closing Date for such Property, the applicable Seller being
charged or credited, as appropriate, for all of the same attributable to the
period up to the Closing Date (and credited for any amounts paid by the
applicable Seller attributable to the period on or after the Closing Date, if
assumed by Purchaser) and Purchaser being responsible for, and credited or
charged, as the case may be, for all of the same attributable to the period on
and after the Closing Date.  Each Seller shall prepare a proration schedule
(the “Proration Schedule”) of the adjustments described in this
Section 5.4 prior to Closing.  Such
adjustments shall be paid by Purchaser to the applicable Seller (if the
prorations result in a net credit to such Seller) or by such Seller to Purchaser
(if the prorations result in a net credit to Purchaser for such Property), by
increasing or reducing the cash to be paid by Purchaser at the Closing for such
Property.  

5.4.2      Operating
Expenses.  With respect to each Property, all of the operating,
maintenance, taxes (other than real estate taxes), prepaid sums and sums owed
under the Property Contracts assumed by Purchaser, and other expenses incurred
in operating such Property that such Seller customarily pays, and any other
costs incurred in the ordinary course of business for the management and
operation of such Property, shall be prorated on an accrual basis.  Each
Seller shall pay all such expenses that accrue prior to the Closing and
Purchaser shall pay all such expenses that accrue from and after the
Closing.

5.4.3     
Utilities.  With respect to each Property, the final readings and
final billings for utilities will be made if possible as of the Closing Date for
such Property, in which case each Seller shall pay all such bills as of the
Closing Date and no proration shall be made at the Closing with respect to
utility bills.  Otherwise, a proration shall be made based upon the
parties’ reasonable good faith estimate.  Each Seller shall be entitled to
the return of any deposit(s) posted by it with any utility company, and such
Seller shall notify each utility company serving its Property to terminate its
account, effective as of noon on the Closing Date for such Property.

5.4.4     
Real Estate Taxes.  Any real estate ad valorem or similar taxes for
a Property, or any installment of assessments payable in installments which
installment is payable in the calendar year of Closing, shall be prorated to the
date of Closing, based upon actual days involved.  The proration of real
property taxes or installments of assessments shall be based upon the assessed
valuation and tax rate figures (assuming payment at the
earliest time to allow for the maximum possible discount) for the year in which
the Closing occurs to the extent the same are available; provided, however, that
in the event that actual figures (whether for the assessed value of such
Property or for the tax rate) for the year of Closing are not available at the
Closing Date for such Property, the proration shall be made using figures from
the preceding year (assuming payment at the earliest time to allow for the
maximum possible discount).  The proration of real property taxes or
installments of assessments shall be final and not subject to re-adjustment
after Closing.  

5.4.5     
Property Contracts.  Purchaser shall assume at Closing the
obligations under the Property Contracts assumed by Purchaser; however,
operating expenses shall be prorated under
Section 5.4.2.

5.4.6     
Leases.

5.4.6.1 With respect to each Property, all collected rent
(whether fixed monthly rentals, additional rentals, escalation rentals,
retroactive rentals, operating cost pass-throughs or other sums and charges
payable by Tenants under the Leases), income and expenses from any portion of a
Property shall be prorated as of the Closing Date.  Purchaser shall
receive all collected rent and income attributable to dates from and after the
Closing Date.  Each Seller shall receive all collected rent and income
attributable to dates prior to the Closing Date.  Notwithstanding the
foregoing, no prorations shall be made in relation to either (a) non-delinquent
rents which have not been collected as of the Closing Date, or (b) delinquent
rents existing, if any, as of the Closing Date (the foregoing (a) and (b)
referred to herein as the "Uncollected Rents").  In adjusting
for Uncollected Rents, no adjustments shall be made in a Seller's favor for
rents which have accrued and are unpaid as of the Closing, but Purchaser shall
pay to such Seller such accrued Uncollected Rents as and when collected by
Purchaser, after first applying collected rents to the payment of all current
obligations owing to Purchaser under the applicable Lease, and only then to
Uncollected Rents due to the applicable Seller.  Purchaser agrees to bill
Tenants of the Properties for all Uncollected Rents and to take reasonable
actions (not including lawsuits or formal proceedings) to collect Uncollected
Rents.  After the Closing, each Seller shall continue to have the right for
a period of six (6) months after the Closing Date, but not the obligation, in
its own name, to demand payment of and to collect Uncollected Rents owed to such
Seller by any Tenant, which right shall include, without limitation, the right
to continue or commence legal actions or proceedings against any Tenant and the
delivery of the Leases Assignment shall not constitute a waiver by any Seller of
such right.  Purchaser agrees to cooperate with each Seller in connection
with all efforts by such Seller to collect such Uncollected Rents and to take
all steps, whether before or after the Closing Date, as may be necessary to
carry out the intention of the foregoing, including, without limitation, the
delivery to each Seller, within seven (7) days after a written request, of any
relevant books and records (including, without limitation, rent statements,
receipted bills and copies of tenant checks used in payment of such rent), the
execution of any and all consents or other documents, and
the undertaking of any act reasonably necessary for the collection of such
Uncollected Rents by such Seller; provided, however, that Purchaser's obligation
to cooperate with a Seller pursuant to this sentence shall not obligate
Purchaser to terminate any Tenant Lease with an existing Tenant, file any formal
actions or proceedings, or evict any existing Tenant from a Property.

5.4.6.2 At Closing, with respect to each Property, Purchaser
shall receive a credit against the applicable Purchase Price in an amount equal
to the received and unapplied balance of all cash (or cash equivalent) Tenant
Deposits, including, but not limited to, security, damage, pet or other
refundable deposits paid by any of the Tenants to secure their respective
obligations under the Leases, together, in all cases, with any interest payable
to the Tenants thereunder as may be required by their respective Tenant Lease or
state or commonwealth law (the “Tenant Security Deposit
Balance”).  Any cash (or cash equivalents) held by a Seller which
constitutes the Tenant Security Deposit Balance shall be retained by the
applicable Seller in exchange for the foregoing credit against the applicable
Purchase Price and shall not be transferred by such Seller pursuant to this
Contract (or any of the documents delivered at Closing), but the obligation with
respect to the Tenant Security Deposit Balance nonetheless shall be assumed by
Purchaser.  The Tenant Security Deposit Balance shall not include any
non-refundable deposits or fees paid by Tenants to any Seller, either pursuant
to the Leases or otherwise.

5.4.7      Assumed Loan
Documents.  This Section 5.4.7 is applicable only to
Assumption Properties.  Each Seller of an Assumption Property shall be
responsible for all principal required to be paid under the terms of the Note
applicable to its Assumption Property prior to Closing, together with all
interest accrued under such Note prior to Closing, all of which may be a credit
against the Purchase Price for its Property as provided in Section
2.2.3.  Purchaser shall be responsible for all Assumption Lender Fees,
Required Loan Fund Amounts, and all other fees, penalties, interest and other
amounts due and owing under the Assumed Loan Documents as a result of any Loan
Assumption and Release.  As set forth in Section 4.6.6, any existing
reserves, impounds and other accounts maintained in connection with the
applicable Loan shall be assigned to Purchaser, and at Closing, Purchaser shall
pay to the applicable Seller an amount equal to the balance of such reserves,
impounds and accounts so assigned.

5.4.8     
AIMCO Loan.  Purchaser shall pay for all costs associated with the
making of the AIMCO Loans, as more particularly provided in Section 4.8.4
above.

5.4.9     
HAP Payments.  This Section 5.4.9 is applicable to only
the  Chimneys of Cradlerock Property.  To the extent that, at the
Closing, there are accrued but unpaid amounts due to the Seller of the Chimneys
of Cradlerock Property under the HAP Contract, then to the extent the Seller of
the Chimneys of Cradlerock Property or Purchaser receive such amounts at any
time after Closing, then such amounts shall be prorated on
an if, as and when received basis, in the same manner as other income of the
Chimneys of Cradlerock Property, with the Seller of the Chimneys of Cradlerock
Property receiving HAP payments attributable to dates prior to Closing of the
Chimneys of Cradlerock Property, and Purchaser receiving HAP payments
attributable to dates from and after the Closing Date of the Chimneys of
Cradlerock Property.

5.4.10   
Insurance.  No proration shall be made in relation to insurance
premiums and insurance policies will not be assigned to Purchaser.  Seller
shall have the risk of loss of the Properties until 11:59 p.m. the day prior to
the Closing Date, after which time the risk of loss shall pass to Purchaser and
Purchaser shall be responsible for obtaining its own insurance thereafter.

5.4.11   
Employees.  Each Seller and such Seller’s manager’s and on-site
employees for all Properties shall have their employment at the applicable
Property terminated as of the Closing Date.  Each Seller (or such Seller's
Property Manager) shall be solely responsible for the payment of any and all
wages, salaries, vacation and/or sick leave compensation, pension or profit
sharing benefits and other benefits or compensation inuring to the benefit of
any and all employees of any Seller, any affiliate or agent, employed at any
Property through the Closing and all such employees shall, at such Seller's (or
such Seller's Property Manager's) cost and expense, be terminated or otherwise
transferred to other employment by such Seller, its Property Manager or an
affiliate thereof.  

5.4.12   
Closing Costs.  With respect to each Property, (i) Purchaser shall
pay the cost of (a) any recording fees and sales, use, gross receipts or similar
taxes, (b) all mortgage recording fees and taxes with respect to any mortgage
loan obtained by Purchaser in connection with its purchase of the Property and
all costs (including, without limitation, indebtedness taxes) in connection with
the Loan Assumption and Release, (c) all costs relating to procurement of the
Title Commitment, the Title Policy and any requested endorsements, to the extent
required under Section 4.1 above, and (d) one-half of the customary
closing costs of the Escrow Agent and (ii) each Seller shall pay (x) the base
premium for its Title Policy, but only to the extent required by
Section 4.1above and (y) one-half of the
customary closing costs of the Escrow Agent.  With respect to the Lazy
Hollow Property, the Chimneys of Cradlerock Property and the Spyglass Property,
Seller and Purchaser shall complete and deliver the appropriate tax, affidavit,
recordation, intake sheet and transfer forms required by the State of Maryland
and Howard County and shall share equally in the costs of all applicable
transfer and recording taxes and fees.  With respect to the Hunter’s Chase
Property, Seller shall pay the grantor’s tax assessed on the transfer and
Purchaser shall pay all other applicable recordation and transfer taxes,
mortgage taxes, documentary stamp taxes and similar charges, if any, applicable
to the transfer of the Hunter’s Chase Property to Purchaser.  With respect
to the Hillmeade Property, the Arbours of Hermitage Property, the Parktown
Townhouse Property, the Westway Village Property and the Woods of Inverness
Property, Purchaser shall pay all recordation and transfer taxes, mortgage
taxes, documentary stamp taxes and similar charges, if
any, applicable to the transfer of such Properties to Purchaser (including any
and all taxes relating to the recording of the assumption agreement in
connection with the Loan Assumption and Release).

5.4.13    Utility
Contracts.  If any Seller has entered into an agreement for the
purchase of electricity, gas or other utility service for its Property or a
group of properties (including such Property) (a “Utility
Contract”), or an affiliate of such Seller has entered into a Utility
Contract, such Utility Contract shall be identified on the Seller Information
Schedule and, as set forth on the Seller Information Schedule, either (a)
Purchaser either shall assume the Utility Contract with respect to such
Property, or (b) the reasonably calculated costs of the Utility Contract
attributable to such Property from and after the Closing shall be paid to the
applicable Seller at the Closing and such Seller shall remain responsible for
payments under the Utility Contract.  

5.4.14   
Possession.  Possession of each Property, subject to the Leases,
Property Contracts, other than Terminated Contracts, and Permitted Exceptions,
shall be delivered to Purchaser at the Closing upon release from escrow of all
items to be delivered by Purchaser pursuant to
Section 5.3including, without limitation, the
applicable Purchase Price.  To the extent reasonably available to each
Seller, originals or copies of its Leases and Property Contracts, lease files,
warranties, guaranties, operating manuals, keys (including Tenant's master
keys), access codes and other passwords, plans and specifications for the
Improvements to the Property, and such Seller's books and records relating to
its Property to be conveyed by such Seller (other than proprietary information)
(collectively, “Seller’s Property-Related Files and Records”)
regarding the applicable Property shall be made available to Purchaser at such
Property after the Closing.  Purchaser agrees, for a period of not less
than two (2) years after the Closing of a Property, except with respect to the
Chimneys of Cradlerock Property, which shall be for a period of not less than
three (3) years after the Closing of the Chimneys of Cradlerock Property (the
“Records Hold Period”), to (a) provide and allow the applicable
Seller reasonable access to Seller’s Property-Related Files and Records for
purposes of inspection and copying thereof, and (b) reasonably maintain and
preserve Seller’s Property-Related Files and Records.  If at any time after
the Records Hold Period, Purchaser desires to dispose of any Seller’s
Property-Related Files and Records, Purchaser must first provide the applicable
Seller prior written notice (the “Records Disposal Notice”). 
Such Seller shall have a period of thirty (30) days after receipt of the Records
Disposal Notice to enter the applicable Property (or such other location where
such records are then stored) and remove or copy those of Seller’s
Property-Related Files and Records that such Seller desires to retain. 

5.5       Post Closing
Adjustments.

 
In general, and except as otherwise provided in this Contract, each Seller shall
be entitled to all income, and shall pay all expenses, relating to the operation
of its Property for the period prior to the Closing Date and Purchaser shall be
entitled to all income, and shall pay all expenses, relating to the operation of
such Property for the period commencing on and after the
Closing Date.  Purchaser or a Seller may request that Purchaser and such
Seller undertake to re-adjust any item on the Proration Schedule (or any item
omitted therefrom), with the exception of real property taxes which shall be
final and not subject to readjustment, in accordance with the provisions of
Section 5.4 of this Contract; provided, however, that
neither party shall have any obligation to re-adjust any items for any Property
(a) after the expiration of sixty (60) days after Closing, or (b) subject to
such sixty (60) day period, unless such items exceed Five Thousand  Dollars
($5,000.00) in magnitude (either individually or in the aggregate) with respect
to such Property.  The provisions of this Section 5.5 shall survive
the Closing and delivery of the Deeds to Purchaser. 

ARTICLE VI
REPRESENTATIONS AND WARRANTIES OF SELLER AND
PURCHASER

6.1       Seller’s
Representations.

 
Except, in all cases, for any fact, information or condition disclosed in the
Title Documents, the Permitted Exceptions, the Property Contracts, or the
Materials, or which is otherwise known by Purchaser prior to the Closing, each
Seller, individually and severally with respect only to itself and its Property,
represents and warrants to Purchaser the following (collectively, the
“Seller’s Representations”) as of the Effective Date and as of the
Closing Date; provided that Purchaser’s remedies if any such Seller’s
Representations are untrue as of the Closing Date are limited to those set forth
in Section 8.1:

6.1.1     
Such Seller is duly organized, validly existing and in good standing under the
laws of the state of its formation set forth on the Seller Information Schedule;
and (x) subject to Section 8.2.4, (y) subject any
approvals required from a Lender for a Loan Assumption and Release with respect
to any Assumption Property and, any  Lender consents required for the
making of the AIMCO Loans and (z) subject to receipt of the HUD Approval and the
DHCR Approval for the transfer of the Chimneys of Cradlerock Property, has or at
the Closing shall have the entity power and authority to sell and convey its
Property and to execute the documents to be executed by such Seller and prior to
the Closing will have taken as applicable, all corporate, partnership, limited
liability company or equivalent entity actions required for the execution and
delivery of this Contract, and the consummation of the transactions contemplated
by this Contract.  The compliance with or fulfillment of the terms and
conditions hereof will not conflict with, or result in a breach of, the terms,
conditions or provisions of, or constitute a default under, any contract to
which such Seller is a party or by which such Seller is otherwise bound, which
conflict, breach or default would have a material adverse affect on such
Seller’s ability to consummate the transaction contemplated by this Contract or
on the Property.  Subject to Section 8.2.4, this
Contract is a valid and binding and enforceable agreement against such Seller in
accordance with its terms;

6.1.2     
Other than the Leases, such Seller's Property is not subject to any written
lease executed by such Seller or, to such Seller's knowledge, any other
possessory interests of any person;

6.1.3      Such Seller is not a
“foreign person,” as that term is used and defined in the Internal Revenue Code,
Section 1445, as amended;

6.1.4     
Except as set forth on the Seller Information Schedule and for any actions by
such Seller to evict Tenants under its Leases, to such Seller’s knowledge, there
are no actions, proceedings, litigation (including bankruptcy) or governmental
investigations or condemnation actions either pending or threatened against such
Seller’s Property;

6.1.5     
To such Seller’s knowledge, such Seller has not received any written notice of
any material default by such Seller under any of its Property Contracts that
will not be terminated on the Closing Date;

6.1.6     
To such Seller's knowledge, such Seller has not received any written notice from
a governmental agency of any uncured material violations of any federal, state,
county or municipal law, ordinance, order, regulation or requirement affecting
such Seller's Property;

6.1.7     
To such Seller's knowledge:  (a) no hazardous or toxic materials or other
substances regulated by applicable federal or state environmental laws are
stored by such Seller on, in or under its Property in quantities which violate
applicable laws governing such materials or substances, (b) such Seller's
Property is not used by such Seller for the storage, treatment, generation or
manufacture of any hazardous or toxic materials or other substances in a manner
which would constitute a violation of applicable federal or state environmental
laws, (c)  such Seller has not received, within one (1) year prior to the
Effective Date, written notice of water damage at its Property resulting in
suspected fungal growth that has not been remediated pursuant to such Seller's
normal operating procedures, and (d)  such Seller has not, within one (1)
year prior to the Effective Date, received written notice of a hazardous
substance condition at its Property or received a written order from a
governmental authority regarding a hazardous substance condition at its
Property;

6.1.8     
Such Seller has not intentionally misstated or misrepresented any information
prepared by it and contained in the Materials delivered pursuant to
Section 3.5.1;

6.1.9     
To such Seller's knowledge, the factual documentation of current operating and
financial results prepared by the applicable Seller (but not Seller Third-Party
Reports) concerning the applicable Property and disclosed to Purchaser hereunder
has been prepared in such Seller's ordinary course of business and is
substantially identical with the information relied on by such Seller in the
current ownership, operation and reporting of the applicable Property by such
Seller; provided, however, Seller has not provided, and is under no obligation
to provide, internal evaluations or similar internal analysis (as compared with
the results themselves);  

6.1.10    To such Seller’s knowledge, the
applicable Rent Roll (as updated pursuant to
Section 5.2.14) is accurate in all material
respects.  Prior to the expiration of the Feasibility Period, at
Purchaser’s request, each Seller shall provide Purchaser with a current Rent
Roll and such updated Rent Roll shall, to the knowledge of such Seller, be
accurate in all material respects; and

6.1.11    To such Seller’s knowledge, the
applicable Property Contracts List (as updated pursuant to
Section 5.2.15) is accurate in all material
respects.

6.2       AS-IS.

 
Except for Seller’s Representations, each Property is expressly purchased and
sold “AS IS,” “WHERE IS,” and “WITH ALL FAULTS.”  The Purchase Price for
each Property and the terms and conditions set forth herein 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 Purchaser shall
have the benefit of, but is not relying upon, any information provided by
Sellers or Broker or statements, representations or warranties, express or
implied, made by or enforceable directly against Sellers or Broker, including,
without limitation, any relating to the value of any Property, the physical or
environmental condition of any Property, any state, federal, county or local
law, ordinance, order or permit; or the suitability, compliance or lack of
compliance of any Property with any regulation, or any other attribute or matter
of or relating to any Property (other than any covenants of title contained in
the Deed conveying a Property and Seller’s Representations with respect to such
Property).  Purchaser agrees that Sellers shall not be responsible or
liable to Purchaser for any defects, errors or omissions, or on account of any
conditions affecting the Properties.  Purchaser, its successors and
assigns, and anyone claiming by, through or under Purchaser, hereby fully
releases each of Seller’s Indemnified Parties 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 any of Seller’s Indemnified Parties with
respect to any and all Losses arising from or related to any defects, errors,
omissions or other conditions affecting the Properties.  Purchaser
represents and warrants that, as of the date hereof and as of the Closing Date,
it has and shall have reviewed and conducted 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 in and about the Properties), reports,
investigations and inspections as it deems appropriate in connection with the
Properties.  If Sellers provide or have 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 Properties, including, without limitation, the offering prepared by
Broker, Purchaser and Sellers agree that Sellers have done so or shall do so
only for the convenience of the parties, Purchaser shall not rely thereon and
the reliance by Purchaser upon any such documents, summaries, opinions or work
product shall not create or give rise to any liability of or against any of
Seller’s Indemnified Parties.  Purchaser acknowledges and agrees that no
representation has been made and no responsibility is assumed by Sellers with
respect to current and future applicable zoning or building code requirements or
the compliance of the Properties with any other laws, rules, ordinances or
regulations, the financial earning capacity or expense history of the
Properties, the continuation of contracts, continued occupancy levels of the
Properties, or any part thereof, or the continued occupancy by tenants of any
Leases or, without limiting any of the foregoing, occupancy at Closing. 
Prior to Closing, each Seller shall have the right, but not the obligation, to
enforce its rights against any and all of its Property occupants, guests or tenants.  Purchaser agrees that the
departure or removal, prior to Closing, of any of such guests, occupants or
tenants shall not be the basis for, nor shall it give rise to, any claim on the
part of Purchaser, nor shall it affect the obligations of Purchaser under this
Contract in any manner whatsoever; and Purchaser shall close title and accept
delivery of the applicable Deed with or without such tenants in possession and
without any allowance or reduction in the applicable Purchase Price under this
Contract.  Purchaser hereby releases Sellers from any and all claims and
liabilities relating to the foregoing matters.

6.3       Survival of Seller’s
Representations.

 
Sellers and Purchaser agree that Seller’s Representations shall survive Closing
of such Seller’s Property for a period of  twelve (12) months (the
“Survival Period”).  No Seller shall have liability after the
Survival Period with respect to any of its Seller’s Representations contained
herein except to the extent that Purchaser has requested arbitration against
such Seller during the Survival Period for breach of any of such Seller’s
Representations.  Each Seller shall be liable only for the breach of its
own Seller’s Representations.  Further, the liability for each Seller for
breach of its Seller’s Representations shall be limited to, and capped at, Three
Hundred Thousand  Dollars ($300,000.00) for such Seller’s Property for
which a breach of Seller’s Representations occurred, on a Property-by-Property
basis if a Seller is selling more than one Property.  Such cap on liability
shall apply for any individual breach or in the aggregate for all breaches of
such Seller’s Representations with respect to such Property.  Purchaser
shall not be entitled to bring any claim for a breach of Seller’s
Representations unless the claim for damages (either in the aggregate or as to
any individual claim) by Purchaser for a Property exceeds Five Thousand 
Dollars ($5,000.00).  In the event that a Seller breaches any
representation contained in Section 6.1 and Purchaser
had knowledge of such breach prior to the Closing Date, and elected to close
regardless, Purchaser shall be deemed to have waived any right of recovery, and
such Seller shall not have any liability in connection therewith.

6.4       Definition of
Seller’s Knowledge.

 
Any representations and warranties made "to the knowledge of such Seller" shall
not be deemed to imply any duty of inquiry.  For purposes of this Contract,
the term Seller's "knowledge" shall mean and refer only to actual
knowledge of the Designated Representative of such Seller and shall not be
construed to refer to the knowledge of any other partner, officer, director,
agent, employee or representative of such Seller, or any affiliate of such
Seller, or to impose upon such Designated Representative any duty to investigate
the matter to which such actual knowledge or the absence thereof pertains, or to
impose upon such Designated Representative any individual personal
liability.  

6.5       Representations and
Warranties of Purchaser.

 
For the purpose of inducing Sellers to enter into this Contract and to
consummate the sale and purchase of the Properties in accordance herewith,
Purchaser represents and warrants to Sellers the following as of the Effective
Date and as of the Closing Date, which shall survive the Closing for the
Survival Period:

6.5.1     
Purchaser is a limited liability company duly organized, validly existing and in
good standing under the laws of Delaware.

6.5.2     
Purchaser, acting through any of its or their duly empowered and authorized
officers or members, has all necessary entity power and authority to own and use its properties and to transact the business in
which it is engaged, and has full power and authority to enter into this
Contract, to execute and deliver the documents and instruments required of
Purchaser herein, and to perform its obligations hereunder; and no consent of
any of Purchaser’s partners, directors, officers or members are required to so
empower or authorize Purchaser.  The compliance with or fulfillment of the
terms and conditions hereof will not conflict with, or result in a breach of,
the terms, conditions or provisions of, or constitute a default under, any
contract to which Purchaser is a party or by which Purchaser is otherwise bound,
which conflict, breach or default would have a material adverse affect on
Purchaser’s ability to consummate the transaction contemplated by this
Contract.  This Contract is a valid, binding and enforceable agreement
against Purchaser in accordance with its terms.

6.5.3     
No pending or, to the knowledge of Purchaser, threatened litigation exists which
if determined adversely would restrain the consummation of the transactions
contemplated by this Contract or would declare illegal, invalid or non-binding
any of Purchaser’s obligations or covenants to Sellers.

6.5.4     
Other than Seller’s Representations, Purchaser has not relied on any
representation or warranty made by Sellers or any representative of Sellers
(including, without limitation, Broker) in connection with this Contract and the
acquisition of the Properties.

6.5.5     
The Broker and its affiliates do not, and will not at the Closing, have any
direct or indirect legal, beneficial, economic or voting interest in Purchaser
(or in an assignee of Purchaser, which pursuant to
Section 13.3, acquires any Property at the Closing),
nor has Purchaser or any affiliate of Purchaser granted (as of the Effective
Date or the Closing Date) the Broker or any of its affiliates any right or
option to acquire any direct or indirect legal, beneficial, economic or voting
interest in Purchaser.

6.5.6     
Purchaser is not a Prohibited Person.

6.5.7     
To Purchaser’s knowledge, none of its investors, affiliates or brokers or other
agents (if any), acting or benefiting in any capacity in connection with this
Contract is a Prohibited Person.

6.5.8     
The funds or other assets Purchaser will transfer to Sellers under this Contract
are not the property of, or are not beneficially owned, directly or indirectly,
by a Prohibited Person.

6.5.9     
The funds or other assets Purchaser will transfer to Sellers under this Contract
are not the proceeds of specified unlawful activity as defined by 18 U.S.C.
§ 1956(c)(7).

6.5.10   
Purchaser represents and warrants that, prior to the Closing of the Chimneys of
Cradlerock Property, Purchaser shall either (i) have taken all steps and
provided all information required by HUD in order to register as a participant
under HUD's Active Partner Performance System or any
similar electronic filing system presently maintained by HUD (the “APPS”)
or (ii) in accordance with the Preservation Approval Process Improvement Act of
2007 (PL 110-35), which required HUD to suspend mandatory processing of Previous
Participation Certificates (HUD form 2530) under APPS, have made a paper filing
of such form.  Purchaser agrees to make all filings required to be made
with HUD, either electronically or on paper in accordance with the previous
participation process, including any advance notification required in connection
with an event that will trigger 2530 approval.  If at any time HUD shall
reinstate mandatory processing of previous participation certificates under
APPS, or any similar electronic filing system, Purchaser shall make any required
filings using such system.

6.5.11   
Neither Purchaser nor any affiliate of Purchaser (as defined in 24 CFR §
200.215) has been debarred, suspended, or voluntarily excluded from
participation in any federal grant or procurement program or any program of a
state government or agency, or has been the subject of a limited denial of
participation issued pursuant to 24 CFR Part 24, Subpart G, or has been denied
approval for participation in a HUD project pursuant to 24 CFR Part 200, subpart
H, at any time during the ten (10) years preceding the date of this
Contract.

6.5.12   
No approval of Purchaser or any affiliate of Purchaser (as defined in 24 CFR §
200.215) for participation in a HUD project pursuant to 24 CFR Part 200, Subpart
H, has been delayed for more than  thirty (30) days after submission of HUD
Form 2530, nor have any of them been denied preliminary approval (or not
received preliminary approval within ninety (90) days of application therefor)
as transferee under a transfer of physical assets application requiring full or
modified review, in each case within the twelve (12) calendar months preceding
the date of this Contract.

ARTICLE VII
OPERATION OF THE PROPERTIES

7.1       Leases and Property
Contracts.

 
During the period of time from the Effective Date to the Closing Date, in the
ordinary course of business each Seller may, with respect to its Property, enter
into new Property Contracts, new Leases, renew existing Leases or modify,
terminate or accept the surrender or forfeiture of any of the Leases, modify any
Property Contracts, or institute and prosecute any available remedies for
default under any Lease or Property Contract without first obtaining the written
consent of Purchaser; provided, however, each Seller agrees that any such new
Property Contracts or any new or renewed Leases shall be on terms consistent
with Seller’s ordinary course of business and shall not have a term in excess of
one (1) year without the prior written consent of Purchaser, which consent shall
not be unreasonably withheld, conditioned or delayed.  Notwithstanding
anything in this Contract to the contrary, at any time between the Effective
Date and the Closing of the Chimneys of Cradlerock Property, to the extent that
Purchaser is either not using commercially reasonable efforts to diligently
obtain a renewal of the HAP Contract pursuant to Section 4.11 or to the
extent Seller is otherwise required by HUD in order to preserve the HAP
Contract, the Seller of the Chimneys of Cradlerock Property must use
commercially reasonable efforts to renew the HAP Contract for the Chimneys of Cradlerock Property or to enter into a new
HAP Contract for the Chimneys of Cradlerock Property.

7.2       General Operation of
Property.

 
Except as specifically set forth in this Article VII, each Seller
shall operate its Property after the Effective Date in the ordinary course of
business, and except as necessary in such Seller’s sole discretion to address
(a) any life or safety issue at its Property, (b) the Westway Village Repair
Work or (c) any other matter which in such Seller’s reasonable discretion
materially adversely affects the use, operation or value of such Property, such
Seller will not make any material alterations to its Property or remove any
material Fixtures and Tangible Personal Property without the prior written
consent of Purchaser which consent shall not be unreasonably withheld,
conditioned or delayed.

7.3       Liens and Title
Defects.

 
Each Seller covenants that, between the Effective Date and the Closing Date, it
will not voluntarily create or cause any lien, encumbrance or other material
defect to title to attach to its Property (other than Leases and Property
Contracts as provided in Section 7.1) unless Purchaser
approves such lien, encumbrance or other title matter, which approval shall not
be unreasonably withheld, conditioned or delayed.  If Purchaser approves
any such subsequent lien, encumbrance or other title matter, the same shall be
deemed a Permitted Encumbrance for all purposes hereunder.  If a Seller
defaults in its obligations under this Section 7.3, Purchaser may
exercise any of its remedies under Section 10.2.
 

7.4       Tax Appeals.

 
Purchaser acknowledges that certain of the Sellers may have filed (or may file)
an appeal (the "Appeal") with respect to real estate ad valorem or other
similar property taxes applicable to the Property (the "Property Taxes").
The following provisions shall survive the Closing and delivery of the Deeds to
Purchaser.

7.4.1     
If such Appeal relates to any Tax Year prior to the Tax Year in which the
Closing occurs, such Seller shall be entitled, in such Seller's sole discretion,
to continue to pursue such Appeal after the Closing Date, and, in the event that
the Appeal is successful in reducing the amount of Property Taxes payable with
respect to any such prior Tax Year, the applicable Seller shall be entitled to
the full amount of any rebate, refund or reduction (collectively, a
"Refund") resulting from the Appeal.  Seller shall not be
obligated to continue to pursue any Appeal with respect to the Property,
including, without limitation, any Appeal that relates to a Tax Year during or
after the Tax Year in which Closing occurs.  If Purchaser receives any
refund of Property Taxes for a prior Tax Year, Purchaser promptly shall remit
the same to the applicable Seller.

7.4.2     
If such Appeal relates to the Tax Year in which Closing occurs, then, prior to
the Closing, the applicable Seller shall notify Purchaser whether such Seller
desires to continue to process the Appeal from and after the Closing Date. 
If such Seller fails to notify Purchaser of its election to continue the Appeal,
such Seller will be deemed to have elected not to continue the Appeal from and
after the Closing Date and the provisions of Section 7.4.2.2 shall
apply.

7.4.2.1  
If Seller elects to continue the Appeal, then, from and after the Closing Date,
Seller agrees that it will continue, at such Seller’s sole cost and expense, to reasonably process the Appeal to
conclusion with the applicable taxing authority (including any further appeals
which such Seller deems reasonable to pursue).  In the event that the
Appeal is successful in reducing the amount of Property Taxes payable with
respect to the Tax Year in which Closing occurs, then Purchaser and such Seller
shall share any Refund on a pro rata basis (in accordance with the number of
days in the Tax Year of Closing that each held title to the Property) after
first reimbursing such Seller for its actual, reasonable and documented
third-party costs (collectively, the "Third-Party Costs") incurred
in connection with the Appeal.  If Third-Party Costs equal or exceed the
amount of the Award, then such Seller shall be entitled to the full amount of
the Award.

7.4.2.2  
If a Seller does not elect to continue the Appeal, then, from and after the
Closing Date, it shall be at the sole discretion of Purchaser whether to
continue, at Purchaser's sole cost and expense, to reasonably process the Appeal
to conclusion with the applicable taxing authority (including any further
appeals which Purchaser deems reasonable to pursue).  In the event that the
Appeal is successful in reducing the amount of Property Taxes payable with
respect to the Tax Year in which Closing occurs, then Purchaser and the
applicable Seller shall share any Refund on a pro rata basis (in accordance with
the number of days in the Tax Year of Closing that each held title to the
Property) after first reimbursing each of Purchaser and the applicable Seller
for their respective Third-Party Costs incurred in connection with the
Appeal.  If Third-Party Costs equal or exceed the amount of the Award, then
the Award shall be applied to such Third-Party Costs on a pro rata basis, with
each of Purchaser and Seller receiving a portion of the Award equal to the
product of (i) a fraction, the numerator of which is the respective party's
Third-Party Costs, and the denominator of which is the total of both parties'
Third-Party Costs, and (ii) the amount of the Award.

7.5       Westway Village
Repair Work.

 
The terms of this Section 7.5 apply only to the Westway Village
Property.  Purchaser acknowledges that certain units (the “Damaged
Units”) at the Westway Village Property have been damaged, and Seller has
commenced making repairs to the Damaged Units (the “Westway Village
Repair Work”).  The Seller of the Westway Village Property, at its
sole cost and expense, shall diligently proceed to complete the Westway Village
Repair Work prior to the Closing of the Westway Village Property and, if and to
the extent a new certificate of occupancy is required by applicable law for the
lawful use and occupancy of each Damaged Unit, use commercially reasonable
efforts to obtain such certificate of occupancy for each of the Damaged
Units.  If the Westway Village Repair Work is not completed prior to the
Closing, then the Closing shall occur in accordance with the terms of the
Contract and, at the Closing, (i) Seller shall assign, and Purchaser shall
assume, all construction and other contracts entered into by Seller in
connection with such Westway Village Repair Work and (ii) Seller shall give
Purchaser a credit against the Purchase Price in the amount necessary to
complete the Westway Village Repair Work.  Notwithstanding the foregoing,
if and to the extent a new certificate of occupancy is required by applicable
law for the lawful use and occupancy of each Damaged Unit and Seller has not
obtained such new certificate of occupancy by Closing, then Seller shall assign Seller’s insurance claim relating to the
loss of rent attributable to such Damaged Unit as a result of not having
obtained a certificate of occupancy.

ARTICLE VIII
CONDITIONS
PRECEDENT TO CLOSING

8.1       Purchaser’s
Conditions to Closing.

 
Purchaser’s obligation to close under this Contract for a particular Property
shall be subject to and conditioned upon the fulfillment of the following
conditions precedent with respect to such Property:

8.1.1      All of the documents
required to be delivered by Sellers to Purchaser at the Closing pursuant to the
terms and conditions hereof shall have been delivered;

8.1.2      Each of Seller’s
Representations shall be true in all material respects as of the Closing
Date;

8.1.3      Each Seller shall have
complied with, fulfilled and performed in all material respects each of the
covenants, terms and conditions to be complied with, fulfilled or performed by
such Seller hereunder; and

8.1.4     
Neither Seller nor any of Seller’s general partners shall be a debtor in any
bankruptcy proceeding nor shall have been in the last six (6) months a debtor in
any bankruptcy proceeding, and there shall not be any pending litigation
which, if adversely determined, would restrain the consummation of any of the
transactions contemplated by this Contract or declare illegal, invalid or
nonbinding any of the covenants or obligations of the Seller;

8.1.5     
With respect to each Assumption Property, provided that Purchaser has complied
with the terms of Section 4.6, the applicable Loan Assumption and Release
for the applicable Assumption Property shall have occurred;

8.1.6     
With respect to the Purchaser Loan Properties, provided that Purchaser has
complied with the terms of Section 4.7, Purchaser’s Lender is committed
to fund the Purchaser’s Loan for the applicable Purchaser Loan Property;
and

8.1.7     
With respect to each AIMCO Loan Property, the AIMCO Lender shall be ready,
willing and able to fund the AIMCO Loan for such AIMCO Loan Property.

Notwithstanding
anything to the contrary, there are no other conditions to Purchaser’s
obligation to Close except as expressly set forth in this
Section 8.1.  If any condition set forth in
Sections 8.1 is not met, Purchaser may (a) waive any of
the foregoing conditions and proceed to Closing on the Closing Date with no
offset or deduction from the Purchase Price for any Property except as otherwise
provided under Section 7.5 and Article XI hereof, or (b) deliver a
Termination Notice to Seller’s Representative for the Property for which there
was such a failure of condition and, if such failure constitutes a default by
Seller, exercise any of its remedies under Section 10.2.  The termination
of this Contract by Purchaser pursuant to this
Section 8.1 must be exercised by written notice from
Purchaser to Sellers’ Representative by 12:00 p.m. on the Closing Date for such
Property.  If Purchaser issues a Termination Notice pursuant to this
Section 8.1, then the provisions of Section 13.33 shall apply with
respect to the Property(ies) identified in such Termination Notice.  

8.2       Sellers’ Conditions
to Closing.

 
Without limiting any of the rights of any Seller elsewhere provided for in this
Contract, each Seller’s obligation to close with respect to conveyance of its
Property under this Contract shall be subject to and conditioned upon the
fulfillment of the following conditions precedent:

8.2.1      All of the documents and
funds required to be delivered by Purchaser to Seller at the Closing pursuant to
the terms and conditions hereof shall have been delivered;

8.2.2     
Each of the representations, warranties and covenants of Purchaser contained
herein shall be true in all material respects as of the Closing Date;

8.2.3     
Purchaser shall have complied with, fulfilled and performed in all material
respects each of the covenants, terms and conditions to be complied with,
fulfilled or performed by Purchaser hereunder;

8.2.4     
The Seller of the Arbours of Hermitage Property has informed Purchaser that in
connection with the sale of the Arbours of Hermitage Property pursuant to this
Contract, the Seller of the Arbours of Hermitage Property is required to file an
information statement with the United States Securities Exchange Commission (the
“SEC”) pursuant to Rule 14(c) of the Securities Exchange Act of
1934, as amended (the “Information Statement”) and to distribute
the Information Statement to such Seller's limited partners.  The Seller of
the Arbours of Hermitage Property shall promptly file the Information Statement
with the SEC after the Effective Date and use commercially reasonably efforts to
diligently process the Information Statement.  It shall be a condition to
the Seller of the Arbours of Hermitage Property closing obligations hereunder
that (A) either (x) such Seller has not received any comments on the Information
Statement from SEC for a period of ten (10) Business Days after the Information
Statement has been filed with the SEC or (y) if such Seller has received
comments from the SEC within such ten (10) Business Day period, such comments
have been addressed to the satisfaction of the SEC and the SEC has confirmed
that it has no further comments to the Information Statement and (B) thereafter
the Information Statement has been delivered to each of the limited partners of
such Seller and a period of not less than twenty (20) calendar days has
expired;

8.2.5      With respect to each
Assumption Property, the applicable Loan Assumption and Release for the
applicable Assumption Property shall have occurred; and

8.2.6      There shall not be any
pending litigation which, if adversely determined, would restrain the
consummation of any of the transactions contemplated by this Contract or declare
illegal, invalid or nonbinding any of the covenants or obligations of the
Purchaser.

If
any of the foregoing conditions in Sections 8.2.1
through 8.2.6 to a Seller’s obligation to close with respect to
conveyance of its Property under this Contract are not met, such Seller may (a)
waive any of the foregoing conditions and proceed to Closing on the Closing Date
for such Seller’s Property or (b) terminate this Contract with respect to its
Property, and, if such failure constitutes a default by Purchaser, exercise any
of its remedies under Section 10.1.  The
termination of this Contract by any Seller pursuant to this
Section 8.2 shall be exercised by written notice from
Sellers’ Representative to Purchaser by 12:00 p.m. on the Closing Date for such
Property.  If a Seller terminates this Contract with respect to this
Section 8.2, then the provisions of Section 13.33 shall apply with
respect to the Property(ies) identified in such termination notice.

ARTICLE IX
BROKERAGE

9.1       Indemnity.

 
Each Seller, severally and individually, represents and warrants to Purchaser
that it has dealt only with the broker listed for each Property in the Seller
Information Schedule (collectively, “Sellers’ Broker”) and Candor Group,
Inc. (the “Transaction Broker”), who is the transaction broker, in
connection with this Contract.  Each Seller, severally and individually,
and Purchaser each represents and warrants to the other that, other than with
respect to a designated Sellers' Broker and Transaction Broker, it has not dealt
with or utilized the services of any other real estate broker, sales person or
finder in connection with this Contract, and each party agrees to indemnify,
hold harmless, and, if requested in the sole and absolute discretion of the
indemnitee, defend (with counsel approved by the indemnitee) the other party
from and against all Losses relating to brokerage commissions and finder's fees
arising from or attributable to the acts or omissions of the indemnifying
party.  

9.2       Broker
Commission.

 
If the Closing occurs, then, at the Closing for such Property, (i) each Seller
agrees to pay the Sellers’ Broker for such Property a commission according to
the terms of a separate contract and (ii) each Seller agrees to pay the
Transaction Broker a commission according to the terms of a separate
contract.  Sellers’ Broker and the Transaction Broker shall not be deemed a
party or third party beneficiary of this Contract.  As a condition to each
Seller’s obligation to pay the commission, each Sellers’ Broker and the
Transaction Broker shall execute the signature page for such Broker attached
hereto solely for purposes of confirming the matters set forth therein.

9.3       Texas Real Estate
License Act.

 
This Section 9.3 only applies to the Parktown Townhouse Property, the
Westway Village Property and the Woods of Inverness Property.  The Texas
Real Estate License Act requires written notice to Purchaser from any licensed
real estate broker or salesman who is to receive a commission, that Purchaser
should have any attorney of its own selection examine an abstract of title to
the property being acquired or that Purchaser should be furnished with or should
obtain a title insurance policy.  Purchaser should not rely upon any oral
representations about the Property from any source.  Each Broker is not
qualified to render property inspections, surveys,
engineering studies, environmental assessments, or inspections to determine
compliance with zoning, governmental regulations, or laws.  Purchaser
should seek experts to render such services. Selection of inspectors and
repairmen is the responsibility of the Purchaser and not the Broker.

ARTICLE X
DEFAULTS AND
REMEDIES

10.1     Purchaser Default.

 
If Purchaser defaults in its obligations hereunder to (a) deliver the
Initial Deposit or the Additional Deposit (or any other deposit or payment
required of Purchaser hereunder), (b) deliver to Sellers the deliveries
specified under Section 5.3 on the date required
thereunder, or (c) deliver the Purchase Price for each Property at the time
required by Section 2.2.4 and close on the purchase of
each of the Properties on the applicable Closing Date for each Property, then,
immediately and without the right to receive notice or to cure pursuant to
Section 2.3.3, Purchaser shall forfeit the Deposit, and
the Escrow Agent shall deliver the Deposit to Sellers, and neither party shall
be obligated to proceed with the purchase and sale of the Properties.  If
Purchaser defaults in any of its other representations, warranties or
obligations under this Contract, and such default continues for more than ten
(10) days after written notice from Sellers’ Representative, then Purchaser
shall forfeit the Deposit, and the Escrow Agent shall deliver the Deposit to
Sellers, and neither party shall be obligated to proceed with the purchase and
sale of the Property.  The Deposit is liquidated damages and recourse to
the Deposit is, except for Purchaser’s indemnity and confidentiality obligations
hereunder and except as set forth in Section 13.16 below, Sellers’ sole
and exclusive remedy for Purchaser’s failure to perform its obligation to
purchase the Properties or breach of a representation or warranty.  Sellers
expressly waive the remedies of specific performance and additional damages for
such default by Purchaser.  SELLERS AND PURCHASER ACKNOWLEDGE THAT SELLERS’
DAMAGES WOULD BE DIFFICULT TO DETERMINE, AND THAT THE DEPOSIT IS A REASONABLE
ESTIMATE OF SELLERS’ DAMAGES RESULTING FROM A DEFAULT BY PURCHASER IN ITS
OBLIGATION TO PURCHASE THE PROPERTIES.  SELLERS AND PURCHASER FURTHER AGREE
THAT THIS SECTION 10.1 IS INTENDED TO AND DOES LIQUIDATE THE
AMOUNT OF DAMAGES DUE SELLERS, AND SHALL BE SELLERS’ EXCLUSIVE REMEDY AGAINST
PURCHASER, BOTH AT LAW AND IN EQUITY, ARISING FROM OR RELATED TO A BREACH BY
PURCHASER OF ITS OBLIGATION TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THIS
CONTRACT, OTHER THAN WITH RESPECT TO PURCHASER’S INDEMNITY AND CONFIDENTIALITY
OBLIGATIONS HEREUNDER AND SELLERS RIGHT TO COLLECT ATTORNEY FEES AND EXPENSES
UNDER SECTION 13.16 BELOW.

10.2     Seller Default.

 
If a Seller defaults (i) in its obligations hereunder to deliver to Escrow Agent
the deliveries specified under Section 5.2 with respect to such Seller on
the date required thereunder, or (ii) to close on the sale of such Seller’s
Property on the Closing Date, then, provided that Purchaser is not in default
under this Contract, at Purchaser's election and as Purchaser's sole and
exclusive remedy, Purchaser may exercise its rights set forth in this Section
10.2 without any further opportunity of such Seller to receive notice or to
cure such default.  If a Seller, prior to the Closing, defaults in its
other covenants or obligations under this Contract (other than such Seller’s
obligation to close on the sale of such Seller’s Property on the Closing Date),
and such default continues for more than ten (10) days after written notice from
Purchaser, then, provided that Purchaser is not in default
under this Contract, at Purchaser's election and as Purchaser's sole and
exclusive remedy, Purchaser may either (a) subject to the conditions below, seek
specific performance of the defaulting Seller’s obligation to deliver its Deed
pursuant to this Contract (but not damages), or (b) give a Termination Notice to
Sellers’ Representative of Purchaser’s decision to terminate this Contract for
the Property for which there was such a default and receive a return of the
Allocated Deposit Amount for such Property from Escrow Agent.  If
Purchaser, pursuant to any provision of this Section 10.2, elects to
terminate this Contract for the Property for which there was a default, then
Purchaser may recover, as its sole recoverable damages (but without limiting its
right to receive a refund of the Allocated Deposit Amount for such terminated
Property), its direct and actual out-of-pocket expenses and costs (documented by
paid invoices to third parties) in connection with the Property for which this
Contract has been terminated, which damages shall not exceed $75,000 per
terminated Property.  Purchaser may seek specific performance of defaulting
Seller’s obligation to deliver the Deed pursuant to this Contract only if, as a
condition precedent to initiating such litigation for specific performance,
Purchaser first shall (i) not otherwise be in default under this Contract and
(ii) file suit therefor with the court on or before the ninetieth
(90th) day after the Closing Date.  Purchaser agrees that it
shall promptly deliver to each Seller an assignment of all of Purchaser’s right,
title and interest in and to (together with possession of) all plans, studies,
surveys, reports, and other materials paid for with the out-of-pocket expenses
reimbursed by Sellers pursuant to the foregoing sentence.  SELLERS AND
PURCHASER FURTHER AGREE THAT THIS SECTION 10.2 IS INTENDED
TO AND DOES LIMIT THE AMOUNT OF DAMAGES DUE PURCHASER AND THE REMEDIES AVAILABLE
TO PURCHASER, AND SHALL BE PURCHASER’S EXCLUSIVE REMEDY AGAINST SELLERS, BOTH AT
LAW AND IN EQUITY ARISING FROM OR RELATED TO A BREACH BY ANY SELLER OF ITS
REPRESENTATIONS, WARRANTIES, OR COVENANTS OR ITS OBLIGATION TO CONSUMMATE THE
TRANSACTIONS CONTEMPLATED BY THIS CONTRACT.  UNDER NO CIRCUMSTANCES MAY
PURCHASER SEEK OR BE ENTITLED TO RECOVER ANY SPECIAL, CONSEQUENTIAL, PUNITIVE,
SPECULATIVE OR INDIRECT DAMAGES, ALL OF WHICH PURCHASER SPECIFICALLY WAIVES,
FROM SELLERS FOR ANY BREACH BY A SELLER, OF ITS REPRESENTATIONS, WARRANTIES OR
COVENANTS OR ITS OBLIGATIONS UNDER THIS CONTRACT.  PURCHASER SPECIFICALLY
WAIVES THE RIGHT TO FILE ANY LIS PENDENS OR ANY LIEN AGAINST ANY PROPERTY UNLESS
AND UNTIL IT HAS IRREVOCABLY ELECTED TO SEEK SPECIFIC PERFORMANCE OF THIS
CONTRACT AND HAS FILED AND IS DILIGENTLY PURSUING AN ACTION SEEKING SUCH
REMEDY.

ARTICLE XI
RISK OF LOSS
OR CASUALTY

11.1     Major Damage.

 
In the event that a Property is damaged or destroyed by fire or other casualty
prior to Closing, and the cost for demolition, site cleaning, restoration,
replacement, or other repairs (collectively, the “Repairs”) is more than
ten percent (10%) of the Purchase Price for such Property, then the applicable
Seller shall have no obligation to make such Repairs, and shall notify Purchaser
in writing of such damage or destruction (the “Damage Notice”). 
Within ten (10) days after Purchaser’s receipt of the Damage Notice, Purchaser
may elect at its option to give a Termination Notice for the damaged Property to
Sellers’ Representative.  If Sellers’ Representative receives a Termination
Notice pursuant to this Section 11.1, then the
provisions of Section 13.33 shall apply to the Property with respect to
which this Contract has been so terminated.  

11.2     Minor Damage.

 
In the event that a Property is damaged or destroyed by fire or other casualty
prior to the Closing, and the cost of Repairs is equal to or less than ten
percent (10%) of the Purchase Price for such Property, then this transaction
shall be closed in accordance with Section 11.3,
notwithstanding such casualty.  In such event, applicable Seller may at its
election endeavor to make such Repairs to the extent of any recovery from
insurance carried on the Property, if such Repairs can be reasonably effected
before the Closing.  Regardless of applicable Seller’s election to commence
such Repairs, or applicable Seller’s ability to complete such Repairs prior to
Closing, this transaction shall be closed in accordance with
Section 11.3 below.

11.3     Closing.

 
In the event Purchaser fails to terminate this Contract following a casualty as
set forth in Section 11.1, or in the event of a
casualty as set forth in Section 11.2, then this
transaction shall be closed in accordance with the terms of the Contract, at
applicable Seller’s election, either (i) for the full Purchase Price,
notwithstanding any such casualty, in which case Purchaser shall, at Closing,
execute and deliver an assignment and assumption (in a form reasonably required
by the applicable Seller) of such Seller’s rights and obligations with respect
to the insurance claim related to such casualty, and thereafter Purchaser shall
receive all insurance proceeds pertaining to such claim, less any amounts which
may already have been spent by applicable Seller for Repairs (plus a credit
against the Purchase Price at Closing in the amount of any deductible payable by
applicable Seller in connection therewith and any shortfall in the amount of the
insurance to cover the costs of the Repairs); or (ii) for the full Purchase
Price less a credit to Purchaser in the amount necessary to complete such
Repairs (less any amounts which may already have been spent by applicable Seller
for Repairs).

11.4     Repairs.

 
To the extent that applicable Seller elects to commence any Repairs prior to
Closing, then applicable Seller shall be entitled to receive and apply available
insurance proceeds to any portion of such Repairs completed or installed prior
to Closing, with Purchaser being responsible for completion of such Repairs
after Closing from the balance of any available insurance proceeds, subject to
the provisions of Section 11.3.  To the extent that any Repairs have
been commenced prior to Closing, then the Property Contracts shall include, and
Purchaser shall assume at Closing, all construction and other contracts entered
into by applicable Seller in connection with such Repairs, which construction
contracts shall be subject to Purchaser’s prior written approval (not to be
unreasonably withheld, conditioned or delayed).  

ARTICLE XII
EMINENT
DOMAIN

12.1    
Eminent Domain.

 
If, at the time of Closing, any material part of a Property is (or previously
has been) acquired, or is about to be acquired (including any acquisition that
materially limits access to such Property), by any governmental agency by the
powers of eminent domain or transfer in lieu thereof (or in the event that at
such time there is any notice of any such acquisition or intent to acquire by
any such governmental agency), Purchaser shall have the right, at Purchaser’s
option, to give a Termination Notice to Sellers’ Representative for the Property
for which there was such a condemnation.  If Sellers’ Representative
receives a Termination Notice pursuant to this Section
12.1, then the provisions of Section 13.33 shall apply to the
Property with respect to which this Contract has been so terminated.

ARTICLE XIII
MISCELLANEOUS

13.1    
Binding Effect of Contract.

 
This Contract shall not be binding on any party until executed by both Purchaser
and all Sellers.  Neither the Escrow Agent’s nor the Broker’s execution of
this Contract shall be a prerequisite to its effectiveness.  Subject to
Section 13.3, this Contract shall be binding upon and
inure to the benefit of Sellers and Purchaser, and their respective successors,
and permitted assigns.

13.2    
Exhibits and Schedules.

 
All Exhibits and Schedules, whether or not annexed hereto, are a part of this
Contract for all purposes.

13.3     Assignability.

 
Except to the extent required to comply with the provisions of
Section 13.18 related to a 1031 Exchange, this Contract
is not assignable by Purchaser without first obtaining the prior written
approval of Sellers’ Representative.  Notwithstanding the foregoing,
Purchaser may assign this Contract to one or more entities so long as (a)
Purchaser is an affiliate of the purchasing entity(ies), (b) Purchaser is not
released from its liability hereunder, and (c) Purchaser provides written notice
to Sellers’ Representative of any proposed assignment no later than five (5)
days prior to the Closing Date.  As used herein, an affiliate is a person
or entity controlled by, under common control with, or controlling another
person or entity.

13.4    
Captions.

 
The captions, headings, and arrangements used in this Contract are for
convenience only and do not in any way affect, limit, amplify, or modify the
terms and provisions hereof.

13.5     Number
and Gender of Words.

 
Whenever herein the singular number is used, the same shall include the plural
where appropriate, and words of any gender shall include each other gender where
appropriate.

13.6    
Notices.

 
All notices, demands, requests and other communications required or permitted
hereunder shall be in writing, and shall be (a) personally delivered with a
written receipt of delivery; (b) sent by a nationally recognized overnight
delivery service requiring a written acknowledgement of receipt or providing a
certification of delivery or attempted delivery; (c) sent by certified or
registered mail, return receipt requested; or (d) sent by confirmed facsimile
transmission or electronic delivery with an original copy thereof transmitted to
the recipient by one of the means described in subsections (a) through (c) no
later than three (3) Business Days thereafter.  All notices shall be deemed
effective when actually delivered as documented in a delivery receipt; provided,
however, that if the notice was sent by overnight courier or mail as aforesaid
and is affirmatively refused or cannot be delivered during customary business
hours by reason of the absence of a signatory to acknowledge receipt, or by
reason of a change of address with respect to which the addressor did not have
either knowledge or written notice delivered in accordance with this paragraph,
then the first attempted delivery shall be deemed to constitute delivery. 
Each party shall be entitled to change its address for notices from time to time
by delivering to the other party notice thereof in the manner herein provided
for the delivery of notices.  All notices shall be
sent to the addressee at its address set forth following its name below:

To
Purchaser:

Standard
Portfolios LLC

c/o
Grant, Genovese & Baratta, LLP

2030
Main Street, Suite 1600

Irvine,
California 92614 

Attention:
Michael J. Genovese

Telephone:  949-660-1600
Facsimile:  949-660-6051

Email: 
mjg@ggb-law.com

With
a copy to

Grant,
Genovese & Baratta, LLP

2030
Main Street, Suite 1600

Irvine,
California 92614 

Attention:
Michael J. Genovese

Telephone:  949-660-1600
Facsimile:  949-660-6051

Email:  mig@ggb-law.com 

 

To any Seller or Sellers’ Representative:

c/o AIMCO
4582
South Ulster Street Parkway 
Suite 1100
Denver, Colorado 
80237
Attention:  Mark Reoch and Brian Bornhorst
Telephone: 
303-757-8101 (Mark Reoch) and 303-691-4472 (Brian Bornhorst)
Facsimile: 
303-300-3261 (Mark Reoch and Brian Bornhorst)

Email: 
mark.reoch@aimco.com and brian.bornhorst@aimco.com

And:

c/o AIMCO
4582 South Ulster Street Parkway
Suite
1100
Denver, Colorado  80237
Attention:  Mr. Harry
Alcock
Telephone:  303-691-4344
Facsimile:  303-300-3282

Email: 
harry.alcock@aimco.com

with copy to:

AIMCO
4582 South Ulster
Street Parkway
Suite 1100
Denver, Colorado  80237
Attention: 
John Spiegleman, Esq.
Telephone: 303-691-4303
Facsimile: 
720-200-6882

Email: 
john.spiegleman@aimco.com

and
a copy to:

Bryan Cave LLP
1290 Avenue of the Americas
New York, New
York 10104
Attention:  Sandor A. Green, Esq.
Telephone:
212-541-2049
Facsimile:  212-541-1449

Email: 
sagreen@bryancave.com

Any
notice required hereunder to be delivered to the Escrow Agent shall be delivered
in accordance with above provisions as follows:

Stewart
Title Guaranty Company

1980
Post Oak Boulevard

Suite
610

Houston,
Texas 77056

Attention: 
Wendy Howell

Telephone: 
800-729-1906

Facsimile:  
713-552-1703

Email: 
WHOWELL@stewart.com

 

Unless
specifically required to be delivered to the Escrow Agent pursuant to the terms
of this Contract, no notice hereunder must be delivered to the Escrow Agent in
order to be effective so long as it is delivered to the other party in
accordance with the above provisions.

13.7    
Governing Law and Venue.

 
The laws of the State of Colorado shall govern the validity, construction,
enforcement, and interpretation of this Contract, unless otherwise specified
herein except for the conflict of laws provisions thereof.  Subject to
Section 13.24, all claims, disputes and other matters
in question arising out of or relating to this Contract, or the breach thereof,
shall be decided by proceedings instituted and litigated in a court of competent
jurisdiction in the State of Colorado is situated, and the parties hereto
expressly consent to the venue and jurisdiction of such court.

13.8     Entire Agreement.

 
This Contract embodies the entire Contract between the parties hereto concerning
the subject matter hereof and supersedes all prior conversations, proposals,
negotiations, understandings and agreements, whether written or oral.

13.9    
Amendments.

 
This Contract shall not be amended, altered, changed, modified, supplemented or
rescinded in any manner except by a written contract executed by all of the
parties; provided, however, that, (a) the signature of the Escrow Agent shall
not be required as to any amendment of this Contract other than an amendment of
Section 2.3, and (b) the signature of the Broker shall
not be required as to any amendment of this Contract.

13.10  
Severability.

 
If any part of this Contract 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 Contract and the remaining portions of
this Contract shall be valid and enforceable.

13.11   Multiple
Counterparts/Facsimile Signatures.

 
This Contract may be executed in a number of identical counterparts.  This
Contract may be executed by facsimile signatures or electronic delivery of
signatures which shall be binding on the parties hereto, with original
signatures to be delivered as soon as reasonably practical thereafter.

13.12  
Construction.

 
No provision of this Contract shall be construed in favor of, or against, any
particular party by reason of any presumption with respect to the drafting of
this Contract; both parties, being represented by counsel, having fully
participated in the negotiation of this instrument.

13.13  
Confidentiality.

 
Purchaser shall not disclose the terms and conditions contained in this Contract
and shall keep the same confidential, provided that Purchaser may disclose the
terms and conditions of this Contract (a) as required by law, (b) to consummate
the terms of this Contract, or any financing relating thereto, or (c) to
Purchaser’s or Sellers’ lenders, attorneys and accountants.  Any
information obtained by Purchaser in the course of its inspection of the
Properties, and any Materials provided by Sellers to Purchaser hereunder, shall
be confidential and Purchaser shall be prohibited from making such information
public to any other person or entity other than its Consultants, without the
prior written authorization of Sellers’ Representative, which may be granted or
denied in the sole discretion of Sellers’ Representative.  In addition,
Purchaser shall use its reasonable efforts to prevent its Consultants from
divulging any such confidential information to any unrelated third parties
except as reasonably necessary to third parties engaged by Purchaser for the
limited purpose of analyzing and investigating such information for the purpose
of consummating the transaction contemplated by this Contract.  Unless and
until the Closing occurs, Purchaser shall not market any of the Properties (or
any portion thereof) to any prospective purchaser or lessee without the prior
written consent of Sellers’ Representative, which consent may be withheld in
Sellers’ Representative’s sole discretion.  Notwithstanding the provisions
of Section 13.8, Purchaser agrees that the covenants,
restrictions and agreements of Purchaser contained in any confidentiality
agreement executed by Purchaser prior to the Effective Date shall survive the
execution of this Contract and shall not be superseded hereby.

13.14   Time of the Essence.

 
It is expressly agreed by the parties hereto that time is of the essence with
respect to this Contract and any aspect thereof.

13.15   Waiver.

 
No delay or omission to exercise any right or power accruing upon any default,
omission, or failure of performance hereunder shall impair any right or power or
shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient.  No
waiver, amendment, release, or modification of this Contract shall be
established by conduct, custom, or course of dealing and all waivers must be in
writing and signed by the waiving party.

13.16   Attorneys’
Fees.

 
In the event either party hereto commences litigation or arbitration against the
other to enforce its rights hereunder, the prevailing party in such litigation
shall be entitled to recover from the other party its reasonable attorneys’ fees
and expenses incidental to such litigation and arbitration, including the cost
of in-house counsel and any appeals.

13.17   Time Zone/Time
Periods.

 
Any reference in this Contract to a specific time shall refer to the time in the
time zone where the Escrow Agent is located.  (For example, a reference to
3:00 p.m. refers to 3:00 p.m. MST if the Escrow Agent is located in Denver,
CO.)  Should the last day of a time period fall on a weekend or legal
holiday, the next Business Day thereafter shall be considered the end of the
time period.

13.18   1031 Exchange.

 
Sellers and Purchaser acknowledge and agree that the purchase and sale of each
Property may be part of a tax-free exchange for either Purchaser or a Seller
pursuant to Section 1031 of the Code, the regulations promulgated
thereunder, revenue procedures, pronouncements and other guidance issued by the
Internal Revenue Service.  Each party hereby agrees to cooperate with each
other and take all reasonable steps on or before the Closing Date to facilitate
such exchange if requested by the other party, provided that (a) no party making
such accommodation shall be required to acquire any substitute property, (b)
such exchange shall not affect the representations, warranties, liabilities and
obligations of the parties to each other under this Contract, (c) no party
making such accommodation shall incur any additional cost, expense or liability
in connection with such exchange (other than expenses of reviewing and executing
documents required in connection with such exchange), and (d) no dates in this
Contract will be extended as a result thereof, except as specifically provided
herein.  Notwithstanding anything in this
Section 13.18 to the contrary, any Seller shall have
the right to extend the Closing Date (as previously extended pursuant to
Section 5.1) for up to thirty (30) days in order to
facilitate a tax-free exchange pursuant to this
Section 13.18, and to obtain all documentation in
connection therewith.

13.19   No Personal
Liability of Officers, Trustees or Directors of Seller’s Partners.

 
Purchaser agrees that none of any Seller’s Indemnified Parties shall have any
personal liability under this Contract or any document executed in connection
with the transactions contemplated by this Contract.

13.20   No Exclusive Negotiations.

 
Sellers shall have the right, at all times prior to the expiration of the
Feasibility Period, to solicit backup offers and enter into discussions,
negotiations, or any other communications concerning or related to the sale of
any Property with any third-party; provided, however, that
such communications are subject to the terms of this Contract, and that Sellers
shall not enter into any binding contract with a third-party for the sale of any
Property unless such contract is contingent on the termination of this Contract
without the Property having been conveyed to Purchaser.

13.21   ADA Disclosure.

 
Purchaser acknowledges that the Properties 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 a property accessible to disabled persons and provide auxiliary aids and
services for hearing, vision or speech impaired persons.  Sellers make no
warranty, representation or guarantee of any type or kind with respect to any
Property’s compliance with the ADA or the FHA (or any similar state or local
law), and Sellers expressly disclaim any such representations.

13.22   No
Recording.

 
Purchaser shall not cause or allow this Contract or any contract or other
document related hereto, nor any memorandum or other evidence hereof, to be
recorded or become a public record without the prior written consent of Sellers’
Representative, which consent may be withheld in the sole discretion of Sellers’
Representative.  If Purchaser records this Contract or any other memorandum
or evidence thereof, Purchaser shall be in default of its obligations under this
Contract.  Purchaser hereby appoints Sellers’ Representative as Purchaser’s
attorney-in-fact to prepare and record any documents necessary to effect the
nullification and release of the contract or other memorandum or evidence
thereof from the public records.  This appointment shall be coupled with an
interest and irrevocable.

13.23   Relationship of
Parties.

 
Purchaser and Sellers acknowledge and agree that the relationship established
between the parties pursuant to this Contract is only that of a seller and a
purchaser of property.  Neither Purchaser nor Sellers is, nor shall either
hold itself out to be, the agent, employee, joint venturer or partner of the
other party.

13.24   Dispute Resolution.

 
Any controversy, dispute, or claim of any nature arising out of, in connection
with, or in relation to the interpretation, performance, enforcement or breach
of this Contract (and any closing document executed in connection herewith),
including any claim based on contract, tort or statute, shall be resolved at the
written request of any party to this Contract by binding arbitration.  The
arbitration shall be administered in accordance with the then current Commercial
Arbitration Rules of the American Arbitration Association.  Any matter to
be settled by arbitration shall be submitted to the American Arbitration
Association in the State of California, applying the laws of the State of
Colorado.  The parties shall attempt to designate one arbitrator from the
American Arbitration Association.  If they are unable to do so within
thirty (30) days after written demand therefor, then the American Arbitration
Association shall designate an arbitrator who shall be a retired judge or
attorney experienced in commercial transactions and who shall have at least
twenty (20) years of experience in commercial or real estate transactions. 
The arbitration shall be final and binding, and enforceable in any court of
competent jurisdiction.  The arbitrator shall award attorneys’ fees
(including those of in-house counsel) and costs to the prevailing party and
charge the cost of arbitration to the party which is not the prevailing
party.  Notwithstanding anything herein to the contrary, this
Section 13.24 shall not prevent Purchaser or Sellers
from seeking and obtaining equitable relief on a temporary or permanent basis,
including, without limitation, a temporary restraining order, a preliminary or
permanent injunction or similar equitable relief, from a
court of competent jurisdiction located in the State of Colorado (to which all
parties hereto consent to venue and jurisdiction) by instituting a legal action
or other court proceeding in order to protect or enforce the rights of such
party under this Contract or to prevent irreparable harm and injury.  The
court’s jurisdiction over any such equitable matter, however, shall be expressly
limited only to the temporary, preliminary, or permanent equitable relief
sought; all other claims initiated under this Contract between the parties
hereto shall be determined through final and binding arbitration in accordance
with this Section 13.24.

13.25   AIMCO
Marks.

 
Purchaser agrees that Sellers, the Property Manager or AIMCO, or their
respective affiliates, are the sole owners of all right, title and interest in
and to the AIMCO Marks (or have the right to use such AIMCO Marks pursuant to
license agreements with third parties) and that no right, title or interest in
or to the AIMCO Marks is granted, transferred, assigned or conveyed as a result
of this Contract.  Purchaser further agrees that Purchaser will not use the
AIMCO Marks for any purpose.

13.26   Non-Solicitation
of Employees.

 
Prior to the expiration of the Feasibility Period, Purchaser acknowledges and
agrees that, without the express written consent of Sellers’ Representative,
neither Purchaser nor any of Purchaser’s employees, affiliates or agents shall
solicit any of Seller’s employees or any employees located at any Property (or
any of any Seller’s affiliates’ employees located at any property owned by such
affiliates) for potential employment.

13.27   Survival.

 
Except for (a) all of the provisions of this Article XIII (other
than Section 13.18 and 13.20), and (b)
Sections 2.3, 3.3, 3.4,
3.5, 4.6.5, 4.8.4, 4.10, 4.11,
5.4, 5.5 , 6.2, 6.5,
9.1, 11.4, 14.1, and 14.2;
(c) any other provisions in this Contract, that by their express terms survive
the termination or Closing, and (d) any payment obligation of Purchaser under
this Contract (the foregoing (a), (b), (c) and (d) referred to herein as the
“Survival Provisions”), none of the terms and provisions of this Contract
shall survive the termination of this Contract, and, if the Contract is not so
terminated, all of the terms and provisions of this Contract (other than the
Survival Provisions, which shall survive the Closing) shall be merged into the
Closing documents and shall not survive Closing.

13.28   Multiple
Purchasers.

 
As used in this Contract, the term “Purchaser” means all entities
acquiring any interest in any Properties at the Closing, including, without
limitation, any assignee(s) of the original Purchaser pursuant to
Section 13.3 of this Contract.  In the event that
“Purchaser” has any obligations or makes any covenants, representations or
warranties under this Contract, the same shall be made jointly and severally by
all entities being a Purchaser hereunder.

13.29   Sellers’ Several
Obligations.

 
Purchaser agrees that, notwithstanding any other provision of this Contract to
the contrary, the representations, warranties, obligations, and covenants of
each Seller are individual and several, and not joint and several, and that each
Seller is responsible and liable only for its own Property and its own
representations, warranties, obligations, and covenants.  Purchaser agrees
that it shall look solely to the applicable Seller for any amount due hereunder
or, obligation owed hereunder, and further waives any and all claims against any
other party or Property for payment or performance of the same, including,
without limitation, any other Seller or AIMCO, or any
partner, member, manager, shareholder, director, officer, employee, affiliate,
representative or agent of any Seller or AIMCO.

13.30   Obligation to
Close on all Properties.

 
Except as expressly set forth in this Contract, Purchaser’s obligation to
purchase the Properties is not severable and Purchaser must purchase all of the
Properties.  Similarly, except as expressly set forth in this Contract,
Sellers’ obligations to sell the Properties are not severable and Sellers must
sell all of the Properties to Purchaser.

13.31   Texas Statutory Utility District Notice for
the Woods of Inverness Property.

 The
terms of this Section 13.31 apply only to the Woods of Inverness
Property.  

13.31.1 
The Woods of Inverness Property is located in the Inverness Forest Improvement
District. The district has taxing authority separate from any other taxing
authority and may, subject to voter approval, issue an unlimited amount of bonds
and levy an unlimited rate of tax in payment of such bonds. As of this date, the
rate of taxes levied by the district on real property located in the district is
$0.45 on each $100 of assessed valuation. The total amount of bonds, excluding
refunding bonds and any bonds or any portion of bonds issued that are payable
solely from revenues received or expected to be received under a contract with a
governmental entity, approved by the voters and which have been or may, at this
date, be issued is $9,660,000, and the aggregate initial principal amounts of
all bonds issued for one or more of the specified facilities of the district and
payable in whole or in part from property taxes is $3,300,000.

 13.31.2
The district has the authority to adopt and impose a standby fee on property in
the district that has water, sanitary sewer, or drainage facilities and services
available but not connected and which does not have a house, building, or other
improvement located thereon and does not substantially utilize the utility
capacity available to the property. The district may exercise the authority
without holding an election on the matter. As of this date, the most recent
amount of the standby fee is $0. An unpaid standby fee is a personal obligation
of the person that owned the property at the time of imposition and is secured
by a lien on the property. Any person may request a certificate from the
district stating the amount, if any, of unpaid standby fees on a tract of
property in the district.

13.31.3 
The district is located in whole or in part within the corporate boundaries of
the city of Houston. The taxpayers of the district are subject to the taxes
imposed by the municipality and by the district until the district is dissolved.
By law, a district located within the corporate boundaries of a municipality may
be dissolved by municipal ordinance without the consent of the district or the
voters of the district.  The purpose of this district is to provide water,
sewer, drainage, or flood control facilities and services within the district
through the issuance of bonds payable in whole or in part from property taxes.
The cost of these utility facilities is not included in the purchase price of
your property, and these utility facilities are owned or to be owned by the
district.

13.31.4  PURCHASER IS ADVISED THAT THE INFORMATION
PROVIDED IN THIS SECTION 13.31 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY
TIME.  THE DISTRICT ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF
SEPTEMBER THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE TAX
RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO CONTACT THE DISTRICT
TO DETERMINE THE STATUS OF ANY CURRENT OR PROPOSED CHANGES TO THE INFORMATION
SHOWN ON THIS FORM.

13.31.5 
By executing this Contract, Purchaser acknowledges receipt of the foregoing
notice provided in this Section 13.31 as of the Effective Date, as required by
Section 49.452 of the Texas Water Code.

13.32   Maryland Critical
Area Notice.

 The
terms of this Section 13.32 apply only to the Spyglass Property. 
Purchaser is hereby advised that all or a portion of the Spyglass Property may
be located in the “critical area” of the Chesapeake and Atlantic Coastal Bays,
and that additional zoning, land use, and resource protection regulations apply
in this area. The “critical area” generally consists of all land and water areas
within 1,000 feet beyond the landward boundaries of State or private wetlands,
the Chesapeake Bay, the Atlantic Coastal Bays, and all of their tidal
tributaries. The “critical area” also includes the waters of and lands under the
Chesapeake Bay, the Atlantic Coastal Bays, and all of their tidal tributaries to
the head of tide. For information as to whether the Spyglass Property is located
within the critical area, Purchaser may contact the local department of planning
and zoning, which maintains maps showing the extent of the critical area in the
jurisdiction. Allegany, Carroll, Frederick, Garrett, Howard, Montgomery, and
Washington counties do not include land located in the critical area.  

13.33   Effect of Partial
Termination of Contract.

 
If this Contract is terminated in part by a Seller or Purchaser with respect to
any one or more (but not all) of the Properties (each a “Terminated
Property”) pursuant to any one or more of the provisions of Section
4.4, Section 4.6.9, Section 4.7, Section 4.8.5,
Section 4.11.10, Section 8.1, Section 8.2, Section
10.2, Section 11.1 and/or Section 12.1 hereof, and provided
that Purchaser is not otherwise in material default hereunder beyond any
applicable notice and cure period, then this Contract shall automatically be
deemed modified to (i) remove each Terminated Property as a “Property” hereunder
and (ii) remove each Seller of each Terminated Property as a “Seller” hereunder,
such that such Seller shall no longer constitute a party to this Contract, and,
accordingly, such Seller and Purchaser shall no longer have any further rights
or obligations hereunder to each other, except for the Survival
Provisions.  In such event, but subject to the terms of Section
2.3.3 hereof, Escrow Agent shall release to Purchaser the Allocated Deposit
Amount for each Terminated Property, and the Deposit shall be deemed to be
reduced by the amount of the Allocated Deposit Amount for each Terminated
Property.  Except as otherwise provided below, if Purchaser or any Seller
terminates this Contract in part and the aggregate Purchase Price for all
such Terminated Properties exceeds twenty-five percent (25%) of the total
Purchase Price for all of the Properties (the “Threshold Amount”),
then either Sellers or Purchaser shall have the right to terminate this Contract
in its entirety by written notice to the other party within five (5) Business
Days of receipt of the applicable notice terminating this Contract for such
Terminated Property.  In such event, but subject to the terms of Section
2.3.3 hereof, Escrow Agent shall release the Deposit to Purchaser (less the Allocated Deposit Amount applicable to
the Property for which a Closing has already occurred, if any) and this Contract
shall be null and void, except for the Survival Provisions. 
Notwithstanding the foregoing, if this Contract is terminated with respect to
the Chimneys of Cradlerock Property pursuant to Sections 4.11.11 then the
Purchase Price for the Chimneys of Cradlerock Property shall not apply towards
the determination of the Threshold Amount. 

ARTICLE XIV
LEAD–BASED
PAINT DISCLOSURE

14.1     Disclosure.

 
Sellers and Purchaser hereby acknowledge delivery of the Lead Based Paint
Disclosure attached as Exhibit H hereto.

14.2    
Consent Agreement.

 
With respect to the Arbours of Hermitage Property and the
Parktown Townhouse Property, testing has been performed at such applicable
property with respect to presence of lead-based paint.  The remainder of
the Properties were built after 1978 and thus do not contain lead based paint.
The “LBP Consultant” identified on the Seller Information Schedule prepared the
Report with respect to the Property identified therein.  A copy of each
Report with respect to the Property will be provided to Purchaser with the
Materials.  Each Report certifies the respective Property as lead based
paint free.  By execution hereof, Purchaser acknowledges receipt of a copy
of the Reports, the Lead-Based Paint Disclosure Statement attached hereto as
Exhibit H, and acknowledges receipt of the Consent Agreement. 
Because the applicable Property has been certified as lead based paint free, the
applicable Seller is not required under the Consent Agreement to remediate or
abate any lead-based paint condition at its Property prior to the Closing. 
Purchaser acknowledges and agrees that (1) after Closing, Purchaser and the
applicable Property shall be subject to the Consent Agreement and the provisions
contained herein related thereto and (2) Purchaser shall not be deemed to be a
third party beneficiary to the Consent Agreement.

[Remainder
of Page Intentionally Left Blank]

NOW, THEREFORE, the parties hereto have executed this
Contract under seal as of the date first set forth above.

Seller:

CCP
IV ARBOURS OF HERMITAGE, LLC, a Delaware limited liability company

 

By:
CCP IV ASSOCIATES, LTD., a Texas limited partnership, its member

 

By:
CCP/IV RESIDENTIAL GP, L.L.C., a South Carolina limited liability company, its
general partner

 

By:
CONSOLIDATED CAPITAL PROPERTIES IV, LP, a Delaware limited partnership, its
manager

 

By:
CONCAP EQUITIES, INC., a Delaware corporation, its general partner

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

OXFORD-COLUMBIA
ASSOCIATES, A MARYLAND LIMITED PARTNERSHIP, a Maryland limited
partnership

By:
OAMCO XVI, L.L.C., a Delaware limited liability company, its managing general
partner

 

By:
OXFORD REALTY FINANCIAL GROUP, INC., a Maryland corporation, its managing
member

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

 

AIMCO
HILLMEADE, LLC, a Delaware limited liability company

 

By:
AIMCO PROPERTIES, L.P., a Delaware limited partnership, its member

 

By:
AIMCO-GP, INC., a Delaware corporation, its general partner

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

BRANDERMILL-OXFORD
ASSOCIATES LIMITED PARTNERSHIP, a Maryland limited partnership

 

By: 
OXFORD EQUITIES CORPORATION, an Indiana corporation, its managing general
partner

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

LAZY
HOLLOW PARTNERS, a California general partnership

 

By:
ANGELES REALTY CORPORATION II, a California corporation, its managing general
partner

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

SHELTER
PROPERTIES II LIMITED PARTNERSHIP, a South Carolina limited partnership

 

By:
SHELTER REALTY II CORPORATION, a South Carolina corporation, its general
partner

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

AMBASSADOR
VII, L.P., a Delaware limited partnership

 

By:
AMBASSADOR VII, INC., a Delaware corporation, its general partner

 

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

WOODS
OF INVERNESS CPF 16, L.P., a Delaware limited partnership

 

By:
CPF 16 WOODS OF INVERNESS GP, L.L.C., a South Carolina limited liability
company, its general partner

 

By:
CENTURY PROPERTIES FUND XVI, a California limited partnership, its member

 

By:
FOX CAPITAL MANAGEMENT CORPORATION, a California corporation, its managing
general partner

 

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

ST.
MARY’S-OXFORD ASSOCIATES LIMITED PARTNERSHIP, a Maryland limited
partnership

 

By:
   OAMCO VII, L.L.C., a Delaware limited liability company, its
managing general partner

 

By: 
OXFORD REALTY FINANCIAL GROUP, INC., a Maryland corporation, its managing
member

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

Purchaser:

Standard Portfolios LLC, a Delaware limited liability company

 

 

By: 
/s/David Liu

Name: 
David Liu

Title: 
ManagerStandard II Portfolio - Contract of Sale

Exhibit
10.14

PURCHASE
AND SALE CONTRACT

AMONG

CCP IV ARBOURS OF HERMITAGE, LLC, 

OXFORD-COLUMBIA ASSOCIATES, A MARYLAND LIMITED
PARTNERSHIP

AIMCO HILLMEADE, LLC, 

BRANDERMILL-OXFORD ASSOCIATES LIMITED PARTNERSHIP,

LAZY HOLLOW PARTNERS, 

SHELTER PROPERTIES II LIMITED PARTNERSHIP,

AMBASSADOR VII, L.P.,

WOODS OF INVERNESS CPF 16, L.P. and

ST. MARY’S OXFORD ASSOCIATES LIMITED
PARTNERSHIP

 

AS
SELLERS

AND

Standard
Portfolios LLC, 

a Delaware limited
liability company

 

AS
PURCHASER

TABLE OF CONTENTS

Page

 

	
 
	
ARTICLE
I
	
DEFINED
TERMS
	
1

	
 
	
ARTICLE
II
	
PURCHASE
AND SALE, PURCHASE PRICE & DEPOSIT
	
1

	
 
	
2.1
	
Purchase
and Sale
	
1

	
 
	
2.2
	
Purchase
Price and Deposit
	
1

	
 
	
2.3
	
Escrow
Provisions Regarding Deposit
	
2

	
 
	
ARTICLE
III
	
FEASIBILITY
PERIOD
	
4

	
 
	
3.1
	
Feasibility
Period
	
4

	
 
	
3.2
	
Expiration
of Feasibility Period
	
5

	
 
	
3.3
	
Conduct
of Investigation
	
5

	
 
	
3.4
	
Purchaser
Indemnification
	
5

	
 
	
3.5
	
Property
Materials
	
7

	
 
	
3.6
	
Property
Contracts
	
8

	
 
	
ARTICLE
IV
	
TITLE
	
9

	
 
	
4.1
	
Title
Documents
	
9

	
 
	
4.2
	
Survey
	
10

	
 
	
4.3
	
Objection
and Response Process/Permitted Exceptions
	
10

	
 
	
4.4
	
Subsequently
Disclosed Exceptions
	
11

	
 
	
4.5
	
Existing
Deed of Trust or Mortgage
	
12

	
 
	
4.6
	
Assumed
Loans
	
12

	
 
	
4.7
	
Purchaser’s
Financing Contingency
	
15

	
 
	
4.8
	
AIMCO
Loan
	
16

	
 
	
4.9
	
Purchaser
Financing
	
19

	
 
	
4.10
	
Housing
Assistance Program Vouchers
	
19

	
 
	
4.11
	
HUD
Approval
	
19

	
 
	
ARTICLE
V
	
CLOSING
	
25

	
 
	
5.1
	
Closing
Date
	
25

	
 
	
5.2
	
Seller
Closing Deliveries
	
26

	
 
	
5.3
	
Purchaser
Closing Deliveries
	
28

	
 
	
5.4
	
Closing
Prorations and Adjustments
	
29

	
 
	
5.5
	
Post
Closing Adjustments
	
35

	
 
	
ARTICLE
VI
	
REPRESENTATIONS
AND WARRANTIES OF SELLER AND
	
 

	
 
	
 
	
PURCHASER
	
35

	
 
	
6.1
	
Seller’s
Representations
	
35

	
 
	
6.2
	
AS-IS
	
37

	
 
	
6.3
	
Survival
of Seller’s Representations
	
39

	
 
	
6.4
	
Definition
of Seller’s Knowledge
	
39

	
 
	
6.5
	
Representations
and Warranties of Purchaser
	
39

	
 
	
ARTICLE
VII
	
OPERATION
OF THE PROPERTY
	
42

	
 
	
7.1
	
Leases
and Property Contracts
	
42

	
 
	
7.2
	
General
Operation of Property
	
42

	
 
	
7.3
	
Liens
and Title Defects
	
42

	
 
	
7.4
	
Tax
Appeals
	
43

	
 
	
7.5
	
Westway
Village Repair Work
	
44

	
 
	
ARTICLE
VIII
	
CONDITIONS
PRECEDENT TO CLOSING
	
45

	
 
	
8.1
	
Purchaser’s
Conditions to Closing
	
45

	
 
	
8.2
	
Seller’s
Conditions to Closing
	
46

	
 
	
ARTICLE
IX
	
BROKERAGE
	
47

	
 
	
9.1
	
Indemnity
	
47

	
 
	
9.2
	
Broker
Commission
	
48

	
 
	
9.3
	
Texas
Real Estate License Act
	
48

	
 
	
ARTICLE
X
	
DEFAULTS
AND REMEDIES
	
48

	
 
	
10.1
	
Purchaser
Default
	
48

	
 
	
10.2
	
Seller
Default
	
49

	
 
	
ARTICLE
XI
	
RISK
OF LOSS OR CASUALTY
	
50

	
 
	
11.1
	
Major
Damage
	
50

	
 
	
11.2
	
Minor
Damage
	
50

	
 
	
11.3
	
Closing
	
51

	
 
	
11.4
	
Repairs
	
51

	
 
	
ARTICLE
XII
	
EMINENT
DOMAIN
	
51

	
 
	
12.1
	
Eminent
Domain
	
51

	
 
	
ARTICLE
XIII
	
MISCELLANEOUS
	
52

	
 
	
13.1
	
Binding
Effect of Contract
	
52

	
 
	
13.2
	
Exhibits
and Schedules
	
52

	
 
	
13.3
	
Assignability
	
52

	
 
	
13.4
	
Captions
	
52

	
 
	
13.5
	
Number
and Gender of Words
	
52

	
 
	
13.6
	
Notices
	
52

	
 
	
13.7
	
Governing
Law and Venue
	
55

	
 
	
13.8
	
Entire
Agreement
	
55

	
 
	
13.9
	
Amendments
	
55

	
 
	
13.10
	
Severability
	
55

	
 
	
13.11
	
Multiple
Counterparts/Facsimile Signatures
	
55

	
 
	
13.12
	
Construction
	
56

	
 
	
13.13
	
Confidentiality
	
56

	
 
	
13.14
	
Time
of the Essence
	
56

	
 
	
13.15
	
Waiver
	
56

	
 
	
13.16
	
Attorneys’
Fees
	
56

	
 
	
13.17
	
Time
Zone/Time Periods
	
57

	
 
	
13.18
	
1031
Exchange
	
57

	
 
	
13.19
	
No
Personal Liability of Officers, Trustees or Directors of
	
 

	
 
	
 
	
Seller’s
Partners
	
57

	
 
	
13.20
	
No
Exclusive Negotiations
	
57

	
 
	
13.21
	
ADA
Disclosure
	
58

	
 
	
13.22
	
No
Recording
	
58

	
 
	
13.23
	
Relationship
of Parties
	
58

	
 
	
13.24
	
Dispute
Resolution
	
58

	
 
	
13.25
	
AIMCO
Marks
	
59

	
 
	
13.26
	
Non-Solicitation
of Employees
	
59

	
 
	
13.27
	
Survival
	
59

	
 
	
13.28
	
Multiple
Purchasers
	
59

	
 
	
13.29
	
Sellers’
Several Obligations
	
59

	
 
	
13.30
	
Obligation
to Close on all Properties
	
60

	
 
	
13.31
	
Texas
Statutory Utility District Notice for the Woods of
	
60

	
 
	
 
	
Inverness
Property
	
60

	
 
	
13.32
	
Maryland
Critical Area Notice
	
61

	
 
	
13.33
	
Effect
of Partial Termination of Contract
	
62

	
ARTICLE
XIV
	
LEAD-BASED
PAINT DISCLOSURE
	
62

	
 
	
14.1
	
Disclosure
	
62

	
 
	
14.2
	
Consent
Agreement
	
63

								

 

 

 EXHIBITS AND SCHEDULES

 

EXHIBITS

 

Exhibit
A-1 - A-9         Description of
Land

Exhibit
B-1                  
Form of MD Deed

Exhibit
B-2                  
Form of TN Deed

Exhibit
B-3                  
Form of TX Deed

Exhibit
B-4                  
Form of VA Deed

Exhibit
C         
            Form of Bill
of Sale

Exhibit
D                     
Form of General Assignment

Exhibit
E                      
Form of Lease Assignment

Exhibit
F                      
Form of Vendor Terminations

Exhibit
G                     
Form of Tenant Notice Letters

Exhibit
H                     
Lead Paint Disclosure

Exhibit
I                       
AIMCO Loan Note

Exhibit
J                      
AIMCO Loan Security Instrument

Exhibit
K                     
AIMCO Loan Assignment of Lease and Rents

Exhibit
L                      
AIMCO Loan Non-Recourse Carveout Guaranty

Exhibit
M                    
AIMCO Loan Environmental Indemnity Agreement

Exhibit
N                     
Intentionally Omitted

Exhibit
O                     
Assignment of HAP Contract

 

SCHEDULES

 

Schedule
1                  
Seller Information Schedule 

Schedule
2                  
Defined Terms

Schedule
3      
            Excluded
Fixtures and Tangible Personal Property

Schedule
4                  
List of Materials

 

 

PURCHASE AND SALE CONTRACT

THIS
PURCHASE AND SALE CONTRACT (this “Contract”) is entered
into as of the 25th day of September, 2009 (the “Effective
Date”), by the selling parties identified on Schedule 1 (the
“Seller Information Schedule”) having an address at 4582 South
Ulster Street Parkway, Suite 1100, Denver, Colorado 80237 (individually a
“Seller” and collectively “Sellers”), and Standard Portfolios LLC, a Delaware
limited liability company, having an address c/o Grant, Genovese & Baratta,
LLP, Attention: Michael J. Genovese, 2030 Main Street, Suite 1600, Irvine,
California 92614 (“Purchaser”).

NOW,
THEREFORE, in consideration of mutual covenants set forth herein, Sellers and
Purchaser hereby agree as follows:

RECITALS

A.                
Each Seller owns the real estate commonly known as and identified by the
“Community Name” listed on the Seller Information Schedule and as more
particularly described in Exhibits A-1 to A-9 attached hereto and made a
part hereof, and the improvements thereon.

B.                
Purchaser desires to purchase, and each Seller desires to sell, the land,
improvements and certain associated property described in this Contract on the
terms and conditions set forth below.

ARTICLE I
DEFINED
TERMS

Unless
otherwise defined herein, any term with its initial letter capitalized in this
Contract shall have the meaning set forth in this Schedule 2
attached hereto and made a part hereof.

ARTICLE II
PURCHASE AND
SALE, PURCHASE PRICE & DEPOSIT

2.1       Purchase and
Sale.

 
Each Seller agrees to sell and convey its Property listed on the Seller
Information Schedule to Purchaser and Purchaser agrees to purchase such Property
from each Seller, all in accordance with the terms and conditions set forth in
this Contract.

2.2       Purchase Price and
Deposit.

 
The purchase price for each Property is set forth in the Seller Information
Schedule (the “Purchase Price”).  The Purchase Price for each
Property shall be payable by Purchaser as follows:

2.2.1     
Concurrently with the execution of this Contract, Purchaser shall deliver to
Stewart Title Guaranty Company, c/o Wendy Howell, National Commercial Closing
Specialist, 1980 Post Oak Boulevard, Suite 610, Houston, TX 77056, (tel)
800-729-1906, (fax) (713) 552-1703 (“Escrow Agent” or “Title
Insurer”) an initial deposit (the “Initial Deposit”) of
Two Million Five Hundred Thousand  Dollars ($2,500,000.00) by wire transfer
of immediately available funds (“Good Funds”).  The
Allocated Initial Deposit Amount for each Property is set forth in the Seller
Information Schedule.  Further, Sellers and Purchaser agree that the amount of One Hundred Dollars ($100.00) (the
"Independent Contract Consideration") has been paid by Purchaser
to Seller concurrently with the deposit into escrow of the Initial Deposit, as
consideration for Sellers' execution and delivery of this Contract and for
Purchaser's rights of review, inspection and termination set forth herein. 
The Independent Contract Consideration is independent of any other consideration
or payment provided for in this Contract and, notwithstanding anything to the
contrary herein, is non-refundable in all events whatsoever.

2.2.2      On or before the day that
the Feasibility Period expires, Purchaser shall deliver to Escrow Agent an
additional deposit (the “Additional Deposit”) of Seven Hundred
Thousand  Dollars ($700,000.00) by wire transfer of Good Funds.  The
Allocated Additional Deposit Amount for each Property is set forth in the
Seller Information Schedule.

2.2.3      Provided that the Loan
Assumption and Release has occurred for a particular Assumption Property, then
at the Closing Purchaser shall, with respect to such Assumption Property,
receive a credit against the Purchase Price for such Assumption Property in the
amount of the outstanding principal balance of the Note applicable to such
Assumption Property, together with all accrued but unpaid interest (if any)
thereon, as of the Closing Date (the "Loan Balance"). 

2.2.4      The balance of the
Purchase Price for each Property shall be paid to and received by Escrow Agent
by wire transfer of Good Funds no later than 1:00 p.m. on the Closing Date
applicable to each such Property or at such earlier time if required by the
Seller’s lender for the applicable Property.

2.2.5     
The allocations of Purchase Prices for the Properties set forth on the Seller
Information Schedule have been established by Purchaser, and Seller has not, in
any way, influenced such allocations among the Properties.

2.3       Escrow Provisions
Regarding Deposit.

2.3.1     
Escrow Agent shall hold the Deposit and make delivery of the Deposit to the
party entitled thereto under the terms of this Contract.  Escrow Agent
shall invest the Deposit in such short-term, high-grade securities,
interest-bearing bank accounts, money market funds or accounts, bank
certificates of deposit or bank repurchase contracts as Escrow Agent, in its
discretion, deems suitable, and all interest and income thereon shall become
part of the Deposit and shall be remitted to the party entitled to the Deposit
pursuant to this Contract.

2.3.2      Escrow Agent shall hold
the Allocated Deposit Amount for each Property until the earlier to occur of
(i) the date on which Purchaser terminates this Contract in accordance with
the terms of Section 3.2 hereof, (ii) the Closing Date for the applicable
Property, at which time, the Allocated Deposit Amount for such Property shall be
applied against the Purchase Price for such Property or (iii) the date on which
Escrow Agent shall be authorized to disburse such Allocated Deposit Amount for such Property in accordance with the terms
hereof.  The tax identification numbers of the parties shall be furnished
to Escrow Agent upon request.

2.3.3      If prior to the Closing
Date, Purchaser or Sellers' Representative makes a written demand upon Escrow
Agent for payment of the Deposit or any part thereof, Escrow Agent shall give
written notice to the other parties of such demand.  If Escrow Agent does
not receive a written objection from another party to the proposed payment
within ten (10) days after the giving of such notice, Escrow Agent is hereby
authorized to make such payment.  If Escrow Agent does receive such written
objection within such ten (10) day period, Escrow Agent shall continue to hold
such amount until otherwise directed by written instructions from the parties to
this Contract or a final judgment or arbitrator's decision.  However,
Escrow Agent shall have the right at any time to deliver the Deposit (or the
portion thereof in question, as the case may be) and interest thereon, if any,
with a court of competent jurisdiction in the state or commonwealth in which a
Property is located.  Escrow Agent shall give written notice of such
deposit to Sellers' Representative and Purchaser.  Upon such deposit,
Escrow Agent shall be relieved and discharged of all further obligations and
responsibilities hereunder with respect to the Deposit (or the portion thereof
so deposited into court, as the case may be).  Sellers hereby appoint
Sellers' Representative to give and receive notices to Escrow Agent regarding
the Deposit.

2.3.4     
The parties acknowledge that Escrow Agent is acting solely as a stakeholder at
their request and for their convenience, and that Escrow Agent shall not be
deemed to be the agent of any of the parties for any act or omission on its part
unless taken or suffered in bad faith in willful disregard of this Contract or
involving gross negligence.  Sellers and Purchaser jointly and severally
shall indemnify and hold Escrow Agent harmless from and against all costs,
claims and expenses, including reasonable attorney’s fees, incurred in
connection with the performance of Escrow Agent’s duties hereunder, except with
respect to actions or omissions taken or suffered by Escrow Agent in bad faith,
in willful disregard of this Contract or involving gross negligence on the part
of the Escrow Agent.

2.3.5      The parties shall deliver
to Escrow Agent an executed copy of this Contract.  Escrow Agent shall
execute the signature page for Escrow Agent attached hereto which shall confirm
Escrow Agent’s agreement to comply with the terms of Seller’s closing
instruction letter delivered at Closing and the provisions of this
Section 2.3.  Notwithstanding the foregoing, Escrow Agent's signature hereon shall not be a prerequisite
to the binding nature of this Contract on Purchaser and Sellers, and the same
shall become fully effective upon execution by Purchaser and Sellers, and the
signature of Escrow Agent will not be necessary to amend any provision of this
Contract, other than this Section 2.3.

2.3.6      Escrow Agent, 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.  Further, Escrow Agent agrees to indemnify
and hold Purchaser, Sellers, and their respective attorneys and brokers harmless
from and against any Losses resulting from Escrow Agent’s failure to file the
reports Escrow Agent is required to file pursuant to this section.

ARTICLE III
FEASIBILITY PERIOD

3.1       Feasibility
Period.

 
Subject to the terms of Sections 3.3 and 3.4
and the rights of Tenants under the Leases, from the Effective Date to and
including November 16, 2009 (the “Feasibility Period”), Purchaser,
and its agents, contractors, engineers, surveyors, attorneys, and employees
(collectively, “Consultants”) shall, at no cost or expense to any
Seller, have the right from time to time to enter onto the Properties to conduct
and make any and all customary studies, tests, examinations, inquiries,
inspections and investigations of or concerning the Properties, review the
Materials and otherwise confirm any and all matters which Purchaser may
reasonably desire to confirm with respect to the Properties and Purchaser’s
intended use thereof (collectively, the “Inspections”).

3.2       Expiration of
Feasibility Period.

 
If any of the matters in Section 3.1 or any other title or survey
matters are unsatisfactory to Purchaser for any reason, or for no reason
whatsoever, in Purchaser’s sole and absolute discretion, then Purchaser shall
have the right to terminate this Contract in its entirety with respect to all
Properties (but not in part with respect to less than all Properties) by
delivering a Termination Notice to Sellers’ Representative and Escrow Agent no
later than 5:00 p.m. on or before the date of expiration of the Feasibility
Period.  If Purchaser provides such Termination Notice, this Contract shall
terminate and be of no further force and effect subject to and except for the
Survival Provisions, and Escrow Agent shall return the Initial Deposit to
Purchaser.  If Purchaser fails to provide Sellers’ Representative with such
Termination Notice prior to the expiration of the Feasibility Period,
Purchaser’s right to terminate under this Section 3.2 shall be
permanently waived and this Contract shall remain in full force and effect, the
Deposit shall be non-refundable, except as otherwise provided herein, and
Purchaser’s obligation to purchase the Properties shall be conditional only as
provided in Section 8.1.

3.3       Conduct of
Investigation.

 
Purchaser shall not permit any mechanics’ or materialmens’ liens or any other
liens to attach to any Property by reason of the performance of any work or the
purchase of any materials by Purchaser or any other party in connection with any
Inspections conducted by or for Purchaser.  Purchaser shall give not less
than forty-eight (48) hours’ advance notice to Seller’s Representative prior to
any entry onto its Property and shall permit such Seller to have a
representative present during all Inspections conducted at its Property. 
Purchaser shall take all reasonable actions and implement all protections
reasonably necessary to ensure that all actions taken in connection with the
Inspections, and all equipment, materials and substances generated, used or
brought onto each Property pose no material threat to the safety of persons,
property or the environment.

3.4       Purchaser
Indemnification.

3.4.1     
Purchaser shall indemnify, hold harmless and, if requested by a Seller (in such
Seller’s sole discretion), defend (with counsel reasonably approved by such
Seller) such Seller, together with such Seller’s affiliates, parent and
subsidiary entities, successors, assigns, partners, managers, members,
employees, officers, directors, trustees, shareholders, counsel,
representatives, agents, Property Manager, Regional Property Manager, and AIMCO
(collectively, including such Seller, “Seller’s Indemnified
Parties”), from and against any and all damages, mechanics’ liens,
materialmen’s liens, liabilities, penalties, interest, losses, demands, actions,
causes of action, claims, costs and expenses (including reasonable attorneys’
fees, including the cost of in-house counsel and appeals) (collectively,
“Losses”) arising from or related to Purchaser’s or its
Consultants’ entry onto such Seller’s Property, and any Inspections or other
acts by Purchaser or Purchaser’s Consultants with respect to such Property
during the Feasibility Period or otherwise; provided, however, such indemnity
shall not cover any Loss to the extent arising from Seller’s Indemnified
Parties’ negligence or willful misconduct or any preexisting latent physical or
environmental conditions discovered by Purchaser in connection with its
investigations as long as Purchaser immediately ceases its investigations upon
discovering such latent condition and takes reasonable steps not to exacerbate
such condition.

3.4.2      Notwithstanding anything
in this Contract to the contrary, Purchaser shall not be permitted to perform
any invasive tests on any Property without Sellers’ Representative’s prior
written consent, which consent may be withheld in Sellers’ Representative’s sole
discretion.  Further, Sellers’ Representative shall have the right, without
limitation, to disapprove any and all entries, surveys, tests (including,
without limitation, a Phase II environmental study of its Property),
investigations and other matters that in such Sellers’ Representative’s
reasonable judgment could result in any injury to its Property or breach of any
contract, or expose the applicable Seller to any Losses or violation of
applicable law, or otherwise adversely affect such Property or such Seller’s
interest therein; provided, however, each Seller hereby expressly consents to
Purchaser's performance of a Phase I environmental study of the applicable
Property (to be conducted by an environmental engineer reasonably acceptable to
Seller's Representative) and an ACM (asbestos containing material) study (to be
conducted by an environmental engineer reasonably acceptable to Seller's
Representative) in connection therewith, but only to the extent customarily
performed in connection with a Phase I environmental study; and, provided,
further, however, if the Phase I for any Property concludes that a Phase II is
recommended, but the applicable Seller refuses permission for such Phase II (in
such Seller's sole and absolute discretion), Purchaser may terminate this
Contract pursuant to Section 3.2 prior to the expiration of the
Feasibility Period.  Purchaser shall use reasonable efforts to minimize
disruption to Tenants in connection with Purchaser’s or its Consultants’
activities pursuant to this Section.  No consent by Sellers’ Representative
to any such activity shall be deemed to constitute a waiver by the applicable
Seller or assumption of liability or risk by such Seller.  Purchaser hereby
agrees to restore, at Purchaser’s sole cost and expense, each Property
substantially to the same condition existing immediately prior to Purchaser’s exercise of its rights pursuant to this Article
III.  Purchaser shall maintain and cause its third party consultants to
maintain (a) casualty insurance and commercial general liability insurance with
coverages of not less than One Million Dollars ($1,000,000.00) for injury or
death to any one person and Three Million Dollars ($3,000,000.00) for injury or
death to more than one person and One Million Dollars ($1,000,000.00) with
respect to property damage, and (b) worker’s compensation insurance for all
of their respective employees in accordance with the law of the state(s) or
commonwealth(s) in which the Properties are located.  Purchaser shall
deliver proof of the insurance coverage required pursuant to this
Section 3.4.2 to Sellers’ Representative (in the form of a
certificate of insurance) prior to Purchaser’s or Purchaser’s Consultants’ entry
onto any of the Properties.  

3.5       Property
Materials.

3.5.1      Within ten (10) days
after the Effective Date, and to the extent the same exist and are in a Seller’s
possession or reasonable control (subject to Section 3.5.2), and
have not been heretofore provided by a Seller to Purchaser, Seller agrees to
make the documents set forth on Schedule 4 (together with any other
documents or information provided by Sellers or their agents to Purchaser with
respect to the Property, the “Materials”) relating to its Property
available at its Property for review and copying by Purchaser at Purchaser’s
sole cost and expense.  In the alternative, at a Seller’s option and within
the foregoing time period, such Seller may deliver some or all of its Materials
to Purchaser, or make the same available to Purchaser on a secure web site
(Purchaser agrees that any item to be delivered by a Seller under this Contract
shall be deemed delivered to the extent available to Purchaser on such secured
web site).  To the extent that Purchaser determines that any of the
Materials have not been made available or delivered to Purchaser pursuant to
this Section 3.5.1, Purchaser shall notify Sellers’ Representative
and Sellers’ Representative shall use commercially reasonable efforts to deliver
the same to Purchaser within five (5) Business Days after such notification is
received by such Seller; provided, however, that under no circumstances will the
Feasibility Period be extended and Purchaser’s sole remedy will be to terminate
this Contract pursuant to Section 3.2.

3.5.2      In providing the
Materials to Purchaser, other than Seller’s Representations, each Seller makes
no representation or warranty, express, written, oral, statutory, or implied,
and all such representations and warranties are hereby expressly excluded and
disclaimed.  All Materials are provided for informational purposes only
and, together with all Third-Party Reports, shall be returned by Purchaser to
all applicable Sellers or the destruction thereof shall be certified in writing
by Purchaser to Sellers’ Representative as a condition to return of the Deposit
to Purchaser if this Contract is terminated for any reason.  Recognizing
that the Materials delivered or made available by Sellers pursuant to this
Contract may not be complete or constitute all of such documents which are in a
Seller’s possession or control, but are those that are readily and reasonably
available to such Seller, Purchaser shall not in any way be entitled to rely
upon the completeness or accuracy of the Materials and
will instead in all instances rely exclusively on its own Inspections and
Consultants with respect to all matters which it deems relevant to its decision
to acquire, own and operate the Properties. 

3.5.3     
In addition to the items set forth on Schedule 4, no later than five (5)
Business Days after the Effective Date, each Seller shall deliver to Purchaser
(or otherwise make available to Purchaser as provided under
Section 3.5.1) the most recent rent roll and security deposit ledger
for the applicable Property, which rent roll and security deposit ledger shall
list the monthly base rent, Lease expiration date and unapplied security deposit
for such Property and is that which each Seller uses in the ordinary course of
operating its Property (collectively, the “Rent Rolls”). Sellers
make no representations or warranties regarding the Rent Rolls other than the
express representation set forth in Section 6.1.10.  

3.5.4      In addition to the items
set forth on Schedule 4, no later than 5 Business Days after the
Effective Date, and to the extent same have not been heretofore provided by a
Seller to Purchaser, Seller shall deliver to Purchaser (or otherwise make
available to Purchaser as provided under Section 3.5.1) a list of
all current Property Contracts for the applicable Property (the “Property
Contracts Lists”).  Sellers make no representations or warranties
regarding the Property Contracts Lists other than the express representations
set forth in Section 6.1.11.

3.6       Property
Contracts.

 
On or before the expiration of the Feasibility Period, Purchaser may deliver
written notice to each Seller (a “Property Contracts Notice”) specifying
any Property Contracts of such Seller which Purchaser desires to terminate at
the Closing (the “Terminated Contracts”); provided that (a) the effective
date of such termination on or after Closing shall be subject to the express
terms of such Terminated Contracts, (b) if any such Property Contract cannot by
its terms be terminated at Closing, it shall be assumed by Purchaser and not be
a Terminated Contract, and (c) to the extent that any such Terminated Contract
requires payment of a penalty, premium, or damages, including liquidated
damages, for cancellation, Purchaser shall be solely responsible for the payment
of any such cancellation fees, penalties, or damages, including liquidated
damages.  If Purchaser fails to deliver a Property Contracts Notice to a
Seller on or before the expiration of the Feasibility Period, there shall be no
Terminated Contracts with respect to such Seller (or its Property) and Purchaser
shall assume all Property Contracts of such Seller at the Closing.  If
Purchaser delivers the Property Contracts Notice to Seller on or before the
expiration of the Feasibility Period, then simultaneously therewith, Purchaser
shall deliver to Seller a vendor termination notice (in the form attached hereto
as Exhibit F) for each Terminated Contract informing the vendor(s) of the
termination of such Terminated Contract as of the Closing Date (subject to any
delay in the effectiveness of such termination pursuant to the express terms of
each applicable Terminated Contract (the “Vendor Terminations”). 
Seller shall sign the Vendor Terminations prepared by Purchaser, and deliver
them to all applicable vendors.  To the extent that any Property Contract
to be assigned to Purchaser requires vendor consent, then, prior to the Closing,
Purchaser may attempt to obtain from each applicable vendor a consent (each a
“Required Assignment Consent”) to such assignment.  Purchaser shall
indemnify, hold harmless and, if requested by the applicable Seller (in such
Seller’s sole discretion), defend (with counsel approved by such Seller) such Seller’s Indemnified Parties from and against any and all
Losses arising from or related to Purchaser’s failure to obtain any Required
Assignment Consent.  Notwithstanding the foregoing, at Closing, each Seller
shall, at its sole cost and expense, terminate any property management contract
affecting such Seller’s Property.

ARTICLE IV
TITLE

4.1       Title Documents.

4.1.1     
Purchaser acknowledges that prior to the Effective Date, Purchaser has received
from Escrow Agent, and has reviewed, a commitment for owner’s title insurance
for each Property, as more specifically identified with regard to each Property
on the Seller Information Schedule (each, a "Title Commitment"), to
provide an owner’s title insurance policy for such Seller's Property using the
current policy jacket customarily provided by the Title Insurer in an amount
equal to such Property's Purchase Price (the "Title Policy"), together
with copies of all instruments identified as exceptions therein (together with
the Title Commitment, referred to herein as the "Title Documents").
 

4.1.2     
With respect to the Chimneys of Cradlerock Property, the Lazy Hollow Property,
the Spyglass Property and the Hunter’s Chase Property, Purchaser shall be solely
responsible for payment of all title insurance premiums and all other costs
relating to procurement of the Title Commitment, the Title Policy and any
requested endorsements.  

4.1.3     
With respect to the Arbours of Hermitage Property, the Hillmeade Property, the
Parktown Townhouse Property, the Westway Village Property and the Woods of
Inverness Property, (i) Seller shall be responsible only for payment of the base
premium for the Title Policy and (ii) Purchaser shall be solely responsible for
payment of all other costs relating to procurement of the Title Commitment, the
Title Policy, and any requested endorsements.

4.2       Survey.

 
Purchaser acknowledges that prior to the Effective Date, each Seller has
delivered to Purchaser a copy of the existing survey of each Property as more
specifically identified with regard to each Property on the Seller Information
Schedule (each, an "Existing Survey").  At Purchaser's
request, Sellers have ordered new or updated surveys for the Properties (the
"New Surveys", and together with the Existing Surveys, the
"Surveys").  Purchaser and the Sellers shall split evenly the
costs for the New Surveys.

4.3       Objection and
Response Process/Permitted Exceptions. 

4.3.1     
On or before November 1, 2009 (the “Objection Deadline”), Purchaser
shall, on a Property-by-Property basis, give written notice (the “Objection
Notice”) to the attorneys for Sellers of any matter set forth in any Title
Documents and Surveys to which Purchaser objects (the
“Objections”).  If Purchaser fails to tender an Objection Notice
with respect to a Property on or before the Objection Deadline, Purchaser shall
be deemed to have approved and irrevocably waived any
objections to any matters covered by the Title Documents and the Survey for such
Property.  On or before November 10, 2009 (the “Response Deadline”),
a Seller who has received an Objection Notice may, in such Seller’s sole
discretion, give Purchaser notice (the “Response Notice”) of those
Objections which such Seller is willing to cure (or cause the Title Insurer to
omit as an exception to title insurance coverage), if any, Sellers shall be
entitled to reasonable adjournments of the Closing Date to cure any Objections
applicable to any Seller.  If a Seller fails to deliver a Response Notice
by the Response Deadline, such Seller shall be deemed to have elected not to
cure or otherwise resolve any matter set forth in the Objection Notice.  If
Purchaser is dissatisfied with any Response Notice or lack of any Response
Notice, Purchaser may, as its exclusive remedy, exercise its right to terminate
this Contract prior to the expiration of the Feasibility Period in accordance
with the provisions of Section 3.2.  If Purchaser fails to
timely exercise such right, Purchaser shall be deemed to accept the Title
Documents and Survey with resolution, if any, of the Objections set forth in the
Response Notice (or if no Response Notice is tendered, without any resolution of
the Objections) and without any reduction or abatement of the Purchase
Price.

4.3.2     
Purchaser shall purchase and accept title to the Properties subject to the
following, all of which shall be deemed
“Permitted Exceptions”:

4.3.2.1  
(i) All matters shown in the Title Documents and the Survey for such Property,
other than those Objections, if any, which (a) the applicable Seller has agreed
to cure (or otherwise resolve) pursuant to the Response Notice under
Section 4.3.1, or (b) the Title Insurer shall be willing to omit as
exceptions to coverage or except with affirmative insurance (at no cost to
Purchaser) against collection out of or enforcement against the Property with
respect to any lender’s mortgage insurance policy, (ii) the standard exceptions
and provisions contained in the form of insuring agreement employed by the Title
Insurer, (iii) the standard exception regarding the rights of parties in
possession which shall be limited to those parties in possession pursuant to the
Leases, (iv) the standard exception pertaining to taxes which shall be limited
to taxes and assessments payable in the year in which the Closing occurs and
subsequent taxes and assessments and (v) any exceptions and matters that are
approved, waived or deemed to have been approved or waived by Purchaser under
this Contract;

                                               
4.3.2.2 All Leases;

4.3.2.3
With respect to any Assumption Property, its Assumed Encumbrances;

4.3.2.4
With respect to the Chimneys of Cradlerock Property, the HAP Contract;

4.3.2.5 Applicable zoning and governmental regulations and
ordinances; and

4.3.2.6
Any defects in or objections to title to such Property, or title exceptions or
encumbrances, arising by, through or under Purchaser.

4.4       Subsequently
Disclosed Exceptions.

 
If at any time after the expiration of the Feasibility Period, an update to any
Title Commitment or Existing Survey discloses any additional item that
materially adversely affects title to the applicable Property which was not
disclosed on any version of, or update to, the Title Commitment or Existing
Survey delivered to Purchaser prior to the expiration of the Feasibility Period
(the “New Exception”), Purchaser shall have a period of five (5) Business
Days from the date of its receipt of such update (the “New Exception Review
Period”) to review and notify the applicable Seller in writing of
Purchaser’s approval or disapproval of the New Exception.  If Purchaser
disapproves of the New Exception, the applicable Seller may, in that Seller’s
sole discretion, notify Purchaser as to whether it is willing to cure the New
Exception.  If such Seller elects to cure (or cause the Title Insurer to
omit as an exception to title insurance coverage) the New Exception, that Seller
shall be entitled to reasonable adjournments of the Closing Date to cure the New
Exception.  If such Seller fails to deliver a notice to Purchaser within
three (3) days after the expiration of the New Exception Review Period, that
Seller shall be deemed to have elected not to cure the New Exception.  If
Purchaser is dissatisfied with such Seller’s response, or lack thereof,
Purchaser may, as its exclusive remedy elect either: (i) to terminate this
Contract with respect to the Property subjected to such New Exception only by
delivering a Termination Notice to Sellers’ Representative or (ii) to waive the
New Exception and proceed with the transactions contemplated by this Contract,
in which event Purchaser shall be deemed to have approved the New
Exception.  If Purchaser fails to notify the Sellers’ Representative of its
election to terminate this Contract in accordance with the foregoing sentence by
the later of (a) the end of the Feasibility Period and (b) the date which is six
(6) days after the expiration of the New Exception Review Period, Purchaser
shall be deemed to have elected to approve and irrevocably waive any objections
to the New Exception.  If Sellers’ Representative receives a Termination
Notice pursuant to this Section 4.4, then the provisions of Section
13.33 shall apply to the Property with respect to which this Contract has
been so terminated.  

4.5       Existing Deed of
Trust or Mortgage.

 
It is understood and agreed that, other than the Assumed Deeds of Trust, any
deeds of trust and/or mortgages which encumber the Properties (collectively, a
“Deed of Trust”) shall not be deemed Permitted Exceptions for such
Property, whether Purchaser gives further written notice of such or not, and
shall be paid off, satisfied, discharged and/or cured from proceeds of the
Purchase Price at Closing.

4.6       Assumed
Loans.

 
This Section 4.6 applies only to the Assumption Properties.

4.6.1     
Purchaser recognizes and agrees that, in connection with the Loan on an
Assumption Property made by Lender, such Assumption Property is encumbered by
the Assumed Deed of Trust and the Assumed Encumbrances.  The Loan is
evidenced by the Note applicable to such Assumption Property.  Prior to the
Effective Date and subject to the provisions of Section 3.5.2, each
Seller of an Assumption Property has made available to
Purchaser copies of the Assumed Loan Documents which are in such Seller’s
possession or reasonable control.

4.6.2      Purchaser agrees that, at
the Closing, (a) Purchaser shall assume the applicable Seller’s obligations
under the Note and all of the other applicable Assumed Loan Documents and accept
title to each Assumption Property subject to the Assumed Deed of Trust and the
Assumed Encumbrances applicable to such Assumption Property, and (b) the
applicable Lender shall release the applicable Seller, as well as any guarantors
and other obligated parties under the Assumed Loan Documents, from all
obligations under the Assumed Loan Documents (and any related guarantees or
letters of credit), including, without limitation, any obligation to make
payments of principal and interest under the applicable Note (collectively, the
foregoing (a) and (b) referred to herein as the “Loan Assumption and
Release”).  Purchaser acknowledges and agrees that (x) certain of
the provisions of the Assumed Loan Documents may have been negotiated for the
exclusive benefit of the applicable Seller, AIMCO or their respective affiliates
(the “Specific AIMCO Provision”), and (y) unless the Lender
otherwise agrees in such Lender’s sole and arbitrary discretion, Purchaser will
not be permitted to assume the benefit of the Specific AIMCO Provisions and the
same shall be of no further force or effect from and after the Closing
Date.

4.6.3      Purchaser further
acknowledges that the Assumed Loan Documents require the satisfaction by
Purchaser of certain requirements as set forth therein to allow for the Loan
Assumption and Release.  Accordingly, Purchaser, at its sole cost and
expense and within 20 days after the Effective Date, but in no event later than
October 1, 2009 (the “Submittal Deadline”), shall use commercially
reasonable efforts to satisfy the requirements set forth in the Assumed Loan
Documents to allow for each Loan Assumption and Release, including, without
limitation, submitting a substantially complete application to the applicable
Lender for assumption of each Loan together with all documents and information
required in connection therewith (the “Loan Assumption
Application”).  Purchaser agrees to provide Sellers’ Representative
with a copy of each Loan Assumption Application no later than the Submittal
Deadline and shall provide evidence of its submission to each Lender on or
before the Submittal Deadline.  Purchaser acknowledges and agrees that
Purchaser is solely responsible for the preparation and submittal of each Loan
Assumption Application, including the collection of all materials, documents,
certificates, financials, signatures, and other items required to be submitted
to such Lender in connection with each Loan Assumption Application.

4.6.4     
Purchaser shall comply with Lender’s assumption guidelines in connection with
the Loan Assumption and Release and, if required by the Lender, Purchaser shall
cause such person or entity reasonably acceptable to the Lender, to execute and
deliver a “non-recourse carve-out” guaranty and environmental indemnity in favor
of Lender.  Purchaser shall be responsible, at its sole cost and expense,
for correcting and re-submitting any deficiencies noted by such Lender in
connection with a Loan Assumption Application no later than five (5) Business Days after notification from such Lender of such
deficiency.  Purchaser also shall provide Sellers’ Representative with a
copy of any correspondence from a Lender with respect to a Loan Assumption
Application no later than five (5) Business Days after receipt of such
correspondence from such Lender.  Purchaser acknowledges that a Lender’s
assumption guidelines may not be consistent with the provisions of the
applicable Assumed Loan Documents concerning the Loan Assumption and
Release.  Purchaser shall coordinate with such Lender to comply with the
appropriate provisions of both the applicable Assumed Loan Documents and such
Lender’s assumption guidelines in order to allow for the Loan Assumption and
Release.

4.6.5      Purchaser shall pay all
fees and expenses (including, without limitation, all servicing fees and
charges, transfer fees, indebtedness taxes, assumption fees, title fees,
endorsement fees, and other fees to release each Seller of all liability under a
Loan) imposed or charged by the Lender or its counsel (such fees and expenses
collectively being referred to as the “Assumption Lender Fees”),
in connection with each Loan Assumption Application and each Loan Assumption and
Release.  The provisions of this Section 4.6.5 shall survive
the termination of this Contract and the Closing.

4.6.6      There are currently no
reserves, impounds and other accounts held by a Lender in connection with each
Loan.  Purchaser shall be responsible for funding any new or additional
reserves, impounds or accounts required by a Lender to be maintained by
Purchaser in connection with each Loan after the Loan Assumption and Release
(the “Required Loan Fund Amounts”).

4.6.7     
Purchaser agrees promptly to deliver to each Lender all documents and
information required by the Assumed Loan Documents, and such other information
or documentation as such Lender reasonably may request, including, without
limitation, financial statements, income tax returns and other financial
information for Purchaser and any required guarantor.  Each Seller agrees
that it will cooperate with Purchaser and the applicable Lender, at no cost or
expense to such Seller, in connection with Purchaser’s application to Lender for
approval of each applicable Loan Assumption and Release.

4.6.8     
No later than ten (10) days after the Effective Date, Purchaser shall order a
Phase I Environmental study and property condition report for each Assumption
Property (each prepared by engineers and/or consultants reasonably acceptable to
Sellers’ Representative and Lender), and covenants that such Phase I
Environmental study and property condition report shall be delivered to Sellers’
Representative and Lender no later than ten (10) days prior to the Closing Date
in connection with and as a precondition to a Loan Assumption and Release for
each Assumption Property.

4.6.9     
If (a) Purchaser complies in all material respects with its obligations under
this Contract (including this Section 4.6) and the requirements of each
of the Assumed Loan Documents in connection with obtaining the Loan Assumption and Release for each Assumption Property, (b)
Purchaser uses commercially reasonable efforts to diligently obtain the Loan
Assumption and Release for each Assumption Property, and (c) prior to the
Closing Date, Purchaser does not obtain the consent of the Lender to the Loan
Assumption and Release for an Assumption Property, then Purchaser shall promptly
deliver a Termination Notice to Sellers’ Representative stating that Purchaser
has been unable to obtain the Loan Assumption and Release for one or more of the
Assumption Properties identified in such Termination Notice. Upon receipt by
Sellers’ Representative of such Termination Notice, the Contract shall
automatically be deemed terminated with respect to each Assumed Property
identified in such Termination Notice.  The provisions of Section
13.33 shall apply to each Assumption Property with respect to which this
Contract has been so terminated. 

4.6.10   
Purchaser shall be in default hereunder if, after the expiration of the
Feasibility Period, Purchaser fails to use commercially reasonable efforts to
diligently obtain Lender's consent to the Loan Assumption and Release for each
Assumption Property.  If such event occurs, then Sellers may terminate this
Contract and the Deposit shall be immediately released by the Escrow Agent to
Sellers.

4.7       Purchaser’s
Financing Contingency.

 
The terms of this Section 4.7 apply only to the
Lazy Hollow Property and the Hillmeade Property (collectively, the
“Purchaser’s Loan Properties” and, each a “Purchaser Loan
Property”).  The obligations of Purchaser under this Contract are
conditioned upon an institutional mortgage lender (“Purchaser’s
Lender”) agreeing to make (A) a second mortgage loan to Purchaser on the
Lazy Hollow Property in the amount of Four Million Four Hundred Thousand 
Dollars ($4,400,000.00) and (B) a second mortgage loan to Purchaser on the
Hillmeade Property in the amount of One Million Four Hundred Thousand 
Dollars ($1,400,000.00) (each a “Purchaser’s Loan” and
collectively “Purchaser’s Loans”).  Each Purchaser’s Loan
shall (i) be secured by a second mortgage on such Property Loan Property, (ii)
have a fixed interest rate not to exceed six and three quarters percent (6.75%),
(iii) be co-terminus with the first mortgage loan securing such Property Loan
Property and (iv) otherwise be on commercially reasonably terms.  Purchaser shall (a) make one or more applications to
Purchaser’s Lender for Purchaser’s Loans (collectively, the “Mortgage Loan
Application”), (b) furnish accurate and complete information on
Purchaser and any guarantor, as required, (c) pay all reasonable fees, points
and charges required in connection with such Mortgage Loan Application and
loans, (d) pursue such Mortgage Loan Application in good faith and with
reasonable diligence, (e) cooperate in good faith with Purchaser’s Lender
to the end of securing Purchaser’s Loans, and (f) if required by Purchaser’s
Lender, cause (x) such person or entity reasonably acceptable to Purchaser’s
Lenderto execute and deliver a “non-recourse carve-out” guaranty and
environmental indemnity in favor of Purchaser’s Lender and (y) such funds to be
escrowed for real estate taxes, insurance and replacement reserves in amounts
reasonably determined by Purchaser’s Lender for loans on multi-family property
in the County and State which are similar in type, age and condition as such
Purchaser Loan Property.  Purchaser acknowledges
and agrees that Purchaser is solely responsible for the preparation and
submittal of the Mortgage Loan Application, including the collection of all
materials, documents, certificates, financials, signatures, and other items
required to be submitted to Purchaser’s Lender in
connection with the Mortgage Loan Application.  Purchaser shall be
responsible at its sole cost and expense for correcting and re-submitting any
deficiencies reasonably noted by Purchaser’s Lender in connection with the
Mortgage Loan Application no later than (5) Business Days after notification
from Purchaser’s Lender of such deficiency.  Provided that Purchaser’s
Lender issues a commitment in accordance with the terms of this Section
4.7, Purchaser shall execute and accept the commitment of Purchaser’s Lender
when issued, shall comply with all reasonable requirements of such
commitment and shall promptly notify Seller upon Purchaser’s execution of such
commitment.  If, notwithstanding Purchaser’s
compliance with the provisions of this Section 4.7, Purchaser’s Lender
fails to issue a loan commitment for a Purchaser Loan Property in accordance
with the terms of this Section 4.7 on or before the Closing Date,
then Purchaser shall have the right to terminate this Contract for such
Purchaser Loan Property only by delivering a Termination
Notice to Sellers’ Representative.  If Purchaser elects to terminate this
Contract with respect to such Purchaser Loan Property, then the provisions of
Section 13.33 shall apply with respect to such Purchaser Loan Property.

 

4.8       AIMCO Loan.

 
Subject to the terms of Section 4.8.6 below, the terms of this Section
4.8 apply only to the Hillmeade Property and the Lazy Hollow Property (each
an “AIMCO Loan Property”, and collectively, the “AIMCO Loan
Properties”).

4.8.1     
At the Closing, and subject to the provisions of Section 4.8.5 below,
Seller shall make, or cause one or more Affiliates of Seller (the entity(ies)
making the AIMCO Loans being herein called, collectively, “AIMCO
Lender”) to make two (2) loans to Purchaser in the aggregate amount of
$3,500,000 (collectively, the “AIMCO Loans”, each an “AIMCO
Loan”), which AIMCO Loans shall be used as follows: (i) a portion of the
AIMCO Loans shall be used to fund a portion of the Purchase Price for the Lazy
Hollow Property and shall be secured by a third mortgage on such Property and
(ii) a portion of the AIMCO Loans shall be used to fund a portion of the
Purchase Price for the Hillmeade Property and shall be secured by a third
mortgage on such Property.  Prior to the expiration of the Feasibility
Period, Seller and Purchaser shall mutually agree on the allocation of the AIMCO
Loans among the AIMCO Loan Properties.

4.8.2     
Each AIMCO Loan shall be made by the AIMCO Lender to Purchaser on the following
terms: (a) monthly payments of interest only shall be due at an interest rate of
six percent (6.0%) per annum during the term of the Aimco Loan, and  (b)
shall have a term of five (5) years. 

4.8.3      At the Closing Purchaser
shall, with respect to each AIMCO Loan, execute and deliver to the AIMCO Lender
the following loan documents (herein collectively called the “AIMCO Loan
Documents”):

(a)     
a promissory note executed by Purchaser in the form attached hereto as
Exhibit I, evidencing such AIMCO Loan; 

(b)     
a security instrument executed by the Purchaser in the form attached hereto as
Exhibit J, securing such AIMCO Loan (the “AIMCO Loan Security
Instrument”); 

(c)      an assignment of leases and
rents executed by the Purchaser in the form attached hereto as Exhibit
K;

(d)     
a non-recourse carveout guaranty executed by such person or entity reasonably
acceptable to AIMCO Lender (the “Guarantor”) in the form annexed
hereto as Exhibit L; 

(e)     
an environmental indemnity agreement executed by the Guarantor in the form
annexed hereto as Exhibit M; 

(f)      
an opinion letter from counsel to Purchaser, in a form reasonably acceptable to
AIMCO Lender, which shall opine to, among other things, the following matters:
(i) the due formation, existence and organization of Purchaser and Guarantor (if
Guarantor is an entity) for such AIMCO Loan, (ii) the power and authority of
Purchaser and Guarantor (if Guarantor is an entity) to execute, deliver, and
perform its obligations under the AIMCO Loan Documents which it is a party to,
(iii) the due execution and delivery by Purchaser and Guarantor of the AIMCO
Loan Documents which it is a party to, (iv) the AIMCO Loan Documents are
enforceable against Purchaser and Guarantor (as applicable) in accordance with
their terms, (v) the execution, delivery and performance by Purchaser and
Guarantor of the AIMCO Loan Documents which it is a party to does not conflict
with or violate any law, rule, regulation or ordinance applicable to Purchaser
and Guarantor (as applicable) and (vi) such AIMCO Loan does not violate the
provisions of the usury laws of the State in which such AIMCO Loan Property is
located; and 

(g)     
such other consents or authorizing documents as the AIMCO Lender may reasonably
request to evidence that the AIMCO Loan Documents have been duly authorized by
Purchaser and the Guarantor.  

4.8.4     
At the Closing Purchaser shall pay all mortgage recording, transfer and grantor
taxes and fees incident to the recording of each AIMCO Loan Security Instrument,
if any, and the filing fees for any financing statements delivered in connection
therewith.  In addition, Purchaser, at its expense, shall at the Closing
obtain for the AIMCO Lender a lender’s policy of title insurance from the Title
Insurer, insuring each AIMCO Loan Security Instrument as a thrid priority lien
on each AIMCO Loan Property (subject only to the Permitted Exceptions). 
Purchaser shall be responsible for all fees and expenses charged by Lender in
connection with the AIMCO Loans (including, without limitation, all fees charged
by the Lender pursuant to the Assumed Loan Documents).  The provisions of
this Section 4.8.4 shall survive the termination of this Contract and the
Closing.  

4.8.5     
From and after the Effective Date, (i) Purchaser, at its sole cost and expense,
shall use commercially reasonable efforts to obtain the consent of the Lender
for each AIMCO Loan Property to the applicable AIMCO Loan and (ii) Seller, at
its sole cost and expense, shall cause AIMCO Lender to use commercially
reasonable efforts to agree with the Lender of each AIMCO Loan Property on a
form of intercreditor agreement (on such terms as are reasonably acceptable to AIMCO Lender) to be entered into at the Closing
of such AIMCO Loan Property.  If, on or before the expiration of the
Feasibility Period, the AIMCO Lender and the Lender of an AIMCO Loan Property
shall fail to agree on the terms of an intercreditor agreement (which
requirement may be waived by the AIMCO Lender in its sole discretion), then the
Seller of such AIMCO Loan Property, by notice to Purchaser given on or before
three (3) Business Days after the expiration of the Feasibility Period, may
elect not to cause the AIMCO Lender to make the AIMCO Loan for such AIMCO Loan
Property to Purchaser.  In such event, Purchaser may, within five (5)
Business Days after the expiration of the Feasibility Period, terminate this
Contract only with respect to such AIMCO Loan Property by delivering a
Termination Notice to Seller’s Representative and the Escrow Agent. 
Further, Seller and Purchaser acknowledge and agree that AIMCO Lender’s making
the AIMCO Loans are expressly conditioned on the following occurring on or
before the Closing of an AIMCO Loan Property (which conditions may be waived by
the AIMCO Lender in its sole discretion):  (A) the Lender for each AIMCO
Loan Property has given its written consent to the applicable AIMCO Loan, and
(B) the Lender is not requiring AIMCO Lender to enter into a so-called
“standstill agreement” (or other agreement of similar import) with such
Lender.  If either (x) such consent of Lender has not been obtained by the
Closing for such AIMCO Loan Property or (y) such Lender is requiring the AIMCO
Lender to enter into a “standstill agreement” (or other agreement of similar
import), then, unless the AIMCO Lender agrees to waive such conditions precedent
set forth in the foregoing clauses (A) and (B), Seller shall not have any
further obligation to cause the AIMCO Lender to make the AIMCO Loans to
Purchaser.  In such event, Purchaser may terminate this Contract only with
respect to such AIMCO Loan Property by delivering a Termination Notice to
Seller’s Representative and the Escrow Agent.  If Purchaser so elects to
terminate this Contract with respect to such AIMCO Loan Property in accordance
with this Section 4.8.5, then (i) this Contract shall terminate for such
AIMCO Loan Property only, and the provisions of Section 13.33 shall apply
with respect to such AIMCO Loan Property.

4.8.6     
Notwithstanding anything to the contrary contained in this Section 4.8,
prior to the expiration of the Feasibility Period, Seller shall have the right,
in Seller’s sole discretion, to replace either AIMCO Loan Property with the
Hunter’s Chase Property.  In such event, (i) the Hunter’s Chase Property
shall be deemed to be an AIMCO Loan Property and (ii) a portion of the AIMCO
Loans shall be used to fund a portion of the Purchase Price for the Hunter’s
Chase Property and shall be secured by a second mortgage on such Property.

4.9       Purchaser
Financing.

 
Except as otherwise provided in (i) Section 4.6.9 above with respect to
the Loan Assumption and Release for the Assumed Properties, (ii) Section
4.7 above with respect to the Purchaser Loans for the Lazy Hollow Property
and the Hillmeade Property and (iii) Section 4.8 with respect to the
AIMCO Loans for the AIMCO Loan Properties, Purchaser assumes full responsibility
to obtain the funds required for settlement, and Purchaser’s acquisition of such
funds shall not be a contingency to the Closing.

4.10     Housing Assistance Program
Vouchers.

 
The terms of this Section 4.10 apply only to the Chimneys of Cradlerock
Property and the Lazy Hollow Property.  Purchaser acknowledges that the HAP
Voucher Contract(s) require(s) the satisfaction by Purchaser of certain
requirements as set forth therein and established by the local housing
authorities (collectively, the “Housing Authority”) to allow for
the HAP Voucher Assumption. Purchaser agrees that, at the Closing, either
(a) Purchaser shall assume all obligations under the HAP Voucher Contracts
and accept title to the applicable Property subject to the same, or (b) the
existing HAP Voucher Contracts shall be terminated, and Purchaser shall enter
into replacement HAP Voucher Contracts which are acceptable to the Housing
Authority (collectively, the foregoing (a) and (b) referred to herein as the
"HAP Voucher Assumption").  Purchaser shall indemnify and
hold the Seller of the Chimneys of Cradlerock Property and the Seller of the
Lazy Hollow Property and the Seller’s Indemnified Parties of such Seller
harmless from and against any and all claims, losses, damages, and expenses
(including reasonable attorneys’ fees) that may be incurred by any of such
Seller and/or any of such Seller’s Indemnified Parties from and after the
Closing Date, in connection with Purchaser’s assumption of the HAP Voucher
Contracts or the failure of Purchaser to enter into a replacement HAP Voucher
Contracts as aforesaid. The terms and provisions of this Section 4.10
shall survive the Closing.

 

4.11     HUD Approval.

 
The terms of this Section 4.11 apply only to the Chimneys of Cradlerock
Property.  

4.11.1    Purchaser
recognizes and agrees that the Chimneys of Cradlerock Property presently is
benefited by the HAP Contract, which shall be deemed a Permitted Exception for
all purposes under this Contract.  Purchaser hereby
acknowledges receipt of a copy of the HAP Contract (subject to Section
3.5.2).

4.11.2    Purchaser agrees that at the Closing,
the Seller of the Chimneys of Cradlerock Property shall assign and Purchaser
shall assume Seller’s rights and obligations under the HAP Contract (the "HAP
Assumption"), and, at the Closing, the Seller of the Chimneys of Cradlerock
Property and Purchaser shall execute and deliver the Assignment of HAP
Contract.  Purchaser further acknowledges that the HAP Contract requires
the satisfaction by Purchaser of certain requirements as set forth therein and
established by HUD to allow for the sale of the Chimney of Cradlerock Property
and the HAP Assumption.

4.11.3    Prior to the
Closing, Purchaser, at its sole cost and expense, shall (i) use commercially
reasonable efforts to diligently obtain HUD Approval and DHCD Approval and (ii)
shall use commercially reasonable efforts to obtain from HUD and/or DHCD (as
applicable) a renewal of
the HAP Contract under Option 2 of the Section 8 Renewal Guide in accordance
with the requirements of HUD Handbook 4350.1, Chapter 7 and Attachment 5 of the
Section 8 Renewal Guide (the “Budget Base Rent Increase Procedure”) to the maximum rents that can be supported by such Budget
Based Rent Increase Procedure.  In connection with the foregoing,
Purchaser, at its sole cost and expense and no later than the Submittal
Deadline, shall submit (i) a substantially complete HUD Application in order to
request HUD Approval and DHCD Application in order to request DHCD Approval,
including, without limitation, all application documents, certificates, agreements, information and fees required by HUD and DHCD to
allow for each of their approval of the Seller the Chimney of Cradlerock
Property's assignment and Purchaser's assumption of the HAP Contract and (ii) a
substantially complete application to HUD and/or DHCD (as applicable) requesting
a renewal of the HAP Contract under the Budget Base Rent Increase Procedure. In
connection with seeking a renewal of the HAP Contract under the Budget Base Rent
Increase Procedure, Purchaser agrees that it will agree to such a renewal for a
period of up to five (5) years.  In addition to the foregoing, (x)
Purchaser shall obtain 2530 approval from HUD, and, in addition to such 2530
approval, shall satisfy all other requirements imposed by HUD field offices in
connection with any other process imposed as a prerequisite to obtaining HUD
Approval, and (y) if the Chimney of Cradlerock Property's Real Estate Assessment
Center physical inspection score is a fifty-nine (59) or below and the Chimney
of Cradlerock Property is involved in an assignment of the HAP Contract, then
the Purchaser shall enter into an agreement with HUD whereby the Purchaser will
hire an independent professional inspector (if an in-house HUD inspector is
unavailable) to inspect all of the Chimney of Cradlerock Property's units to
determine if they meet the Uniform Physical Condition Standards.

4.11.4    Purchaser agrees promptly to deliver
to HUD and DHCD (i) all documents and information required in order to obtain
(x) HUD Approval and DHCD Approval and (y) a renewal of the HAP Contract under
the Budget Base Rent Increase Procedure and (ii) such other information or
documentation as HUD and DHCD reasonably may request, including, without
limitation, financial statements, income tax returns and other financial
information for Purchaser and any required guarantor, materials, documents,
certificates, signatures, and other items.  Purchaser aggress that it shall
be responsible at its sole cost and expense for obtaining (i) a letter from HUD
and DHCD approving the transfer of the Chimneys of Cradlerock Property and
providing final approval of the assignment of the HAP Contract and (ii) the
documents necessary to effectuate a renewal of the HAP Contract under the Budget
Base Rent Increase Procedure. Purchaser agrees to provide Sellers’
Representative with copies of the HUD Application, the DHCD Application and the
application requesting a renewal of the HAP Contract no later than two (2)
Business Days prior to the Submittal Deadline and shall provide evidence of
Purchaser's submission of the HUD Application to HUD, the DHCD Application to
DHCD and the application requesting a renewal of the HAP Contract under the
Budget Base Rent Increase Procedure to HUD and/or DHCD (as applicable) on or
before the Submittal Deadline.  Purchaser shall be responsible at its sole
cost and expense for correcting and re-submitting any deficiencies noted by HUD
or DHCD in connection with their respective applications no later than five (5)
Business Days after notification from HUD or DHCD of such deficiency (as the
case may be).  Purchaser also shall provide Sellers’ Representative with a
copy of any correspondence from HUD with respect to the HUD Application, from
DHCD with respect to the DHCD Application and from HUD and/or DHCD (as
applicable) with respect to the application requesting a renewal of the HAP
Contract under the Budget Base Rent Increase Procedure no later than five (5)
Business Days after receipt of such correspondence
from HUD or DHCD (as the case may be).  Purchaser shall pay all fees and
expenses (including, without limitation, transfer fees, assumption fees, title
fees, endorsement fees, and other fees) imposed or charged by HUD, DHCD or their
counsel in connection with the HUD Application, the HUD Approval, the DHCD
Application and the DHCD Approval and the application requesting a renewal of
the HAP Contract and the approval thereof (which obligation shall survive the
termination of this Contract and the Closing).  Without limiting the
generality of the foregoing, Purchaser shall pay the cost of any physical
inspection report required in connection with obtaining HUD Approval.  The
foregoing obligations of Purchaser shall survive the Closing.

4.11.5   
Notwithstanding anything in this Contract to the contrary, if any residual
receipts account is maintained by the Seller of the Chimneys of Cradlerock
Property (a "Residual Receipts Account") in connection with the HAP
Contract, then the Residual Receipts Account will remain with the Chimneys of
Cradlerock Property following the Closing and Purchaser shall reimburse the
Seller of the Chimneys of Cradlerock Property at the Closing for the amount of
such Residual Receipts Account. There
is currently no Residual Receipts Account maintained by the Seller of the
Chimneys of Cradlerock Property in connection with the HAP Contract.

4.11.6   
No transfer of any interest in the Chimneys of Cradlerock Property shall be
effective prior to HUD Approval and DHCD Approval.  Purchaser will not take
possession of the Chimneys of Cradlerock Property or assume benefits of
ownership of the Chimneys of Cradlerock Property prior to HUD Approval and DHCD
Approval.  Purchaser, its heirs, executors, administrators or assigns,
shall have no right upon any breach by the Seller of the Chimneys of Cradlerock
Property hereunder to seek damages, directly or indirectly, from the Chimneys of
Cradlerock Property, including from any assets, rents, issues or profits
thereof, and Purchaser shall have no right to effect a lien upon the Chimneys of
Cradlerock Property or the rents, issues or profits thereof.

4.11.7   
Purchaser recognizes and agrees that HUD may require that the Assignment of HAP
Contract contain a provision, in accordance with the Memorandum of Beverly J.
Miller, Director, Asset Management, Office of Housing, dated January 6, 2005,
that amends the HAP Contract to include the following additional provisions:

Physical
Conditions Standards and Inspection Requirements.  The Owner shall
comply with the Physical Condition Standards and Inspection Requirements of 24
CFR Part 5, Subpart G, including any changes in the regulation and related
Directives.  In addition, the Owner shall comply with HUD's Physical
Condition Standards of Multifamily Properties of 24 CFR Part 200, Subpart P,
including any changes in the regulation and related Directives.  This
obligation shall apply both during the current term of the HAP Contract and
during each successive renewal term. 

Financial Reporting Standards.  The Owner shall
comply with the Uniform Financial Reporting Standards of 24 CFR Part 5, Subpart
H, including any changes in the regulation and related Directives.  This
obligation shall apply both during the current term of the HAP Contract and
during each successive renewal term. 

4.11.8    Purchaser acknowledges and agrees
that, in connection with HUD Approval, HUD may require the funding of additional
escrows and reserves, including without limitation, additional repair escrows
(collectively, the "Additional Required Escrows").  Purchaser agrees
that, at the Closing, Purchaser shall fund all Additional Required Escrows in
Good Funds and in addition to the Purchase Price for the Chimneys of Cradlerock
Property or any other amount Purchaser is required to pay pursuant to this
Contract.  

4.11.9   
Purchaser and Seller agree to cooperate and to work with HUD and/or DHCD, as
required, to ensure that there is a HAP Contract in place as of Closing.
 Further, Purchaser, for itself and its successors and assigns, covenants
to and agrees with the Seller of the Chimneys of Cradlerock Property that
Purchaser shall maintain the HAP Contract in full force and effect for the term
of the HAP Contract remaining from and after Closing. Purchaser additionally
covenants to use commercially reasonable efforts to diligently obtain approval
from HUD and/or DHCD (as applicable) for the renewal of the HAP Contract assumed
by Purchaser at Closing for at least one (1) year after Closing.  Purchaser
shall promptly provide Seller with copies of any application and correspondence
with HUD or DHCD relating to the renewal or extension of the HAP Contract and
covenants to comply with all HUD and DHCD regulations required to obtain such
renewal or extension, including, but not limited to, undertaking any rent
comparability studies, appraisals or other third party evaluations or analysis
required to renew the HAP Contract.  Purchaser shall indemnify and hold the
Seller of the Chimneys of Cradlerock Property and the Seller’s Indemnified
Parties of the Seller of the Chimneys of Cradlerock Property harmless from and
against any and all claims, losses, damages, and expenses (including reasonable
attorneys’ fees) that may be incurred by the Seller of the Chimneys of
Cradlerock Property and/or any of such Seller’s Indemnified Parties from and
after the Closing Date, in connection with Purchaser’s failure to renew the HAP
Contract assumed by Purchaser at Closing for at least one (1) year after
Closing.  The terms and provisions of this Section 4.11.9 shall
survive the Closing.

4.11.10 
Provided that (a) Purchaser fully complies with its obligations under this
Contract (including this Section 4.11) and (b) prior to the Closing Date,
Purchaser has been unable to obtain HUD Approval and DHCD Approval, then either
Purchaser or Seller shall have the right to give the other party and Escrow
Agent written notice terminating this Contract with respect to the Chimneys of
Cradlerock Property only based solely on the fact that HUD Approval and DHCD
Approval has not been obtained.  If either party elects to terminate this
Contract with respect to the Chimneys of Cradlerock Property pursuant to this
Section 4.11.10, then the provisions of Section 13.33 shall apply
with respect to the Chimneys of Cradlerock Property. 
To the extent necessary and reasonable, the Seller of the Chimneys of Cradlerock
Property will provide authorization to HUD, DHCD or to any other appropriate
federal or state agency, to release to Purchaser copies of the HAP Contract, or
other documents or agreement with HUD or DHCD for Purchaser’s reference in
connection with obtaining HUD Approval and the DHCD Approval.

4.11.11 
(a)  Provided that (i) Purchaser fully complies with its obligations under
this Contract (including this Section 4.11) and the requirements of HUD
and/or DHCD (as applicable in connection with Purchaser’s efforts to obtain a
renewal of the HAP Contract under the Budget Base Rent Increase Procedure), (ii)
Purchaser uses commercially reasonable efforts to diligently obtain a renewal of
the HAP Contract under the Budget Base Rent Increase Procedure and (iii) on or
prior to the Closing Date, Purchaser has not obtained a renewal of, or a
commitment from HUD to renew, the HAP Contract, under the Budget Base Rent
Increase Procedure or otherwise, which renewal does or will result in an
increase in the annual contract rents for Section 8 units at the Chimneys of
Cradlerock Property (the “Chimneys Section 8 Units”) over the annual
contract rents for the Chimneys Section 8 Units in effect as of the Effective
Date, then and in such events, at the Closing Purchaser shall receive a credit
(the “Chimneys Section 8 Credit”) against the Allocated Purchase Price
for the Chimneys of Cradlerock Property in an amount equal to $530,000.00.

(b)       
If on or prior to the Closing Date HUD issues, or commits to issue, a renewal of
the HAP Contract, under the Budget Base Rent Increase Procedure or otherwise,
which renewal does or will result in an increase in the annual contract rents
for the Chimneys Section 8 Units over the annual contract rents for the Chimneys
Section 8 Units in effect as of the Effective Date (such renewal, a “HAP
Contract Renewal”), then at the Closing Purchaser shall receive a credit
against the Allocated Purchase Price for the Chimneys of Cradlerock Property
(which credit shall be in lieu of, and not in addition to, the Chimneys Section
8 Credit) equal to the positive excess, if any of (X) $530,000.00, over (Y) the
product obtained by multiplying (i) the Aggregate Annual Rent Increase Amount
(defined below), by (ii) 2.5.  The “Aggregate Annual Rent Increase
Amount” shall mean an amount equal to (A) the sum of the annual
contract rents for all Chimneys Section 8 Units resulting from the HAP Contract
Renewal, minus (B) the sum of the annual contract rents for all Chimneys Section
8 Units in effect as of the Effective Date.

 

4.11.12 
Seller hereby agrees to indemnify, defend and hold harmless Purchaser from and
against any and all costs, damages, losses, liabilities and expenses (including
reasonable attorneys’ fees) incurred by Purchaser as a result of claims or
causes of action arising out of or relating to Seller’s failure to perform any
of the obligations under the HAP Contract first occurring prior to the date
hereof. Purchaser
hereby agrees to indemnify, defend and hold harmless Seller from and against any
and all costs, damages, losses, liabilities and expenses (including reasonable
attorneys’ fees) incurred by Seller as a result of claims or causes of action
arising out of or relating to Purchaser’s failure to perform any of the
obligations on its part to be performed under the HAP Contract first occurring
from and after the date hereof.  The provisions of
this Section 4.11.12 shall survive the Closing.

 

ARTICLE V
CLOSING

5.1       Closing Date.

5.1.1     
Subject to the terms of subsections 5.1.2 and 5.1.3 hereof, the
Closing shall occur on December 15, 2009 at the time set forth in
Section 2.2.4 through an escrow with Escrow Agent, whereby Sellers,
Purchaser and their attorneys need not be physically present at the Closing and
may deliver documents by overnight air courier or other means.  

5.1.2     
Notwithstanding anything contained in Section 5.1.1 above to the
contrary, Purchaser shall have the right to accelerate the Closing Date for any
one or more of the Properties to a Business Day prior to December 15, 2009,
provided that (i) the Payoff Properties must close on the same date, and (ii)
Purchaser must deliver a written notice (the “Closing Date Acceleration
Notice”) to Seller of such exercise not later than fifteen (15) days prior
to the date that Purchaser desires to close on such Property(ies).  In
order to be effective, the Closing Date Acceleration Notice must (x) specify the
Property(ies) that Purchaser desires to close on prior to December 15, 2009
(such Properties being herein called the “Early Close Properties”) and
(y) state the new scheduled Closing Date for the Early Close Properties (it
being agreed that “time shall be of the essence” with respect to the obligations
of the parties to be performed on such new scheduled Closing Date for the Early
Close Properties).  If Purchaser timely delivers a Closing Date
Acceleration Notice as aforesaid, then upon the Closing of an Early Close
Property, the Allocated Deposit Amount applicable to such Early Close Property
shall be applied to the Allocated Purchase Price for such Early Close
Property.

5.1.3     
Notwithstanding anything to the contrary contained herein, if required in order
to comply with the requirements of Section 8.2.4, then the Seller of the
Arbours of Hermitage Property shall have the option, by delivering written
notice to Purchaser at least five (5) Business Days prior to the then scheduled
Closing Date of such Property, to extend the Closing Date for such Property to a
Business Day not later than  December 30, 2009. Further, with respect to
each Payoff Property, Seller shall have the option, by delivering written notice
to Purchaser, to extend the Closing Date for a Payoff Property to either the
last Business Day of the month in which the Closing Date for such Payoff
Property otherwise would occur pursuant to this Section 5.1 or the tenth
(10th) day of the month following the month in which the Closing Date
for such Payoff Property would otherwise occur pursuant to this Section
5.1 (or if such tenth (10th) day of the month is not a Business
Day, then the next Business Day thereafter), in connection
with Seller's payment in full of the loan(s) secured by the Deed of Trust.
 

5.1.4     
Notwithstanding anything contained herein to the contrary, the date on which the
Closing is to occur pursuant to this Section 5.1 with respect to any one
or more of the Properties shall be deemed “time of the essence” with respect to
the obligations of both Seller and Purchaser to be performed on such date.

5.2       Seller Closing
Deliveries.

 
No later than one (1) Business Day prior to the Closing Date for a Property, the
applicable Seller shall, with respect to such Property to be conveyed by such
Seller hereunder, deliver to Escrow Agent, each of the following items:

5.2.1      With respect to the
Chimneys of Cradlerock Property, the Lazy Hollow Property and the Spyglass
Property, a Special Warranty Deed in the form attached as
Exhibit B-1 (the “MD Deed”), subject to the Permitted
Exceptions for such Properties.

5.2.2     
With respect to the Arbours of Hermitage Property and the Hillmeade Property, a
Special Warranty Deed in the form attached as Exhibit B-2 (the
“TN Deed”), subject to the Permitted Exceptions for such
Properties.

5.2.3     
With respect to the Parktown Townhouses Property, the Westway Village Property
and the Woods of Inverness Property, a Special Warranty Deed in the form
attached as Exhibit B-3 (the “TX Deed”), subject to
the Permitted Exceptions for such Properties.

5.2.4     
With respect to the Hunter’s Chase Property, a Special Warranty Deed in the form
attached as Exhibit B-4 (the “VA Deed”), subject to
the Permitted Exceptions for such Property.

5.2.5     
A Bill of Sale in the form attached as Exhibit C.

5.2.6      A General Assignment in
the form attached as Exhibit D (the “General
Assignment”).

5.2.7      An Assignment of Leases
and Security Deposits in the form attached as Exhibit E (the
“Leases Assignment”).

5.2.8     
With respect to the Chimneys of Cradlerock Property, an Assignment of HAP
Contract in the form attached hereto as Exhibit O (with such changes as
may be required by HUD and DHCR) (the “Assignment of HAP
Contract”)

5.2.9     
Notification letters to all Tenants at such Property (the “Tenant
Notification Letters”) prepared and executed by Seller in the form
attached hereto as Exhibit G, which shall be delivered to all
Tenants by Seller immediately after Closing.  

5.2.10    The applicable Seller’s closing
statement.

5.2.11   
A title affidavit or an indemnity form reasonably acceptable to such Seller,
which is sufficient to enable Title Insurer to delete the standard pre-printed
exceptions to the title insurance policy to be issued pursuant to the Title
Commitment.

5.2.12   
A certification of such Seller’s non-foreign status pursuant to
Section 1445 of the Internal Revenue Code of 1986, as amended.

5.2.13   
Resolutions, certificates of good standing, and such other organizational
documents as Title Insurer shall reasonably require evidencing such Seller’s
authority to consummate this transaction.

5.2.14    Updated Rent Rolls from each Seller
effective as of a date no more than three (3) Business Days prior to the Closing
Date; provided, however, that the content of such updated Rent Rolls shall in no
event expand or modify the conditions to Purchaser’s obligation to close as
specified under Section 8.1.

5.2.15    Updated Property Contracts Lists
from each Seller effective as of a date no more than three (3) Business Days
prior to the Closing Date; provided, however, that the content of such updated
Property Contracts Lists shall in no event expand or modify the conditions to
Purchaser’s obligation to close as specified under
Section 8.1.

5.2.16   
With respect to the Lazy Hollow Property, the Chimneys of Cradlerock Property
and the Spyglass Property, a Land Instrument Intake Sheet. 

5.2.17   
With respect to the Hunter’s Chase Property, a Virginia Department of Taxation
Nonresident Real Property Owner Registration (Form R-5).

5.2.18   
With respect to an Assumption Property, a countersigned counterpart of an
assumption agreement in connection with the Loan Assumption and Release for such
Assumption Property.

5.2.19   
Such other documents as are reasonably necessary to consummate the transactions
herein contemplated in accordance with the terms of the Contract.

5.3       Purchaser Closing
Deliveries.

 
No later than one (1) Business Day prior to the Closing Date for a Property
(except for the balance of the Purchase Price which is to be delivered at the
time specified in Section 2.2.4), Purchaser shall deliver to the
Escrow Agent (for disbursement to the applicable Seller upon the Closing) the
following items with respect to each Property being conveyed at the Closing:

5.3.1      The full Purchase Price
for such Property (with, a credit for (x) the Allocated Deposit Amount for such
Property, subject to, and except as otherwise provided in, the terms of
Section 5.1.2 above (y) if such Property is an Assumption Property, the Loan Balance for such Assumption
Property and (z) if such Property is an AIMCO Loan Property, the amount of the
AIMCO Loan for such AIMCO Loan Property), plus or minus the adjustments or
prorations required by this Contract.

5.3.2     
A title affidavit or an indemnity form (pertaining to Purchaser’s activity on
the applicable Property prior to Closing), reasonably acceptable to Purchaser,
which is sufficient to enable Title Insurer to delete the standard pre-printed
exceptions to the title insurance policy to be issued pursuant to the Title
Commitment.

5.3.3     
Purchaser’s closing statement.

5.3.4     
A countersigned counterpart of the General Assignment.

5.3.5     
A countersigned counterpart of the Leases Assignment.

5.3.6     
A countersigned counterpart of the Tenant Notification Letters.

5.3.7     
Any cancellation fees or penalties due to any vendor under any Terminated
Contract as a result of the termination thereof.

5.3.8     
Resolutions, certificates of good standing, and such other organizational
documents as Title Insurer shall reasonably require evidencing Purchaser’s
authority to consummate this transaction.

5.3.9     
With respect to an Assumption Property, all documents, instruments, guaranties,
Assumption Lender Fees, Required Loan Fund Amounts, and other items or funds
required by the applicable Lender to cause the applicable Loan Assumption and
Release, including a countersigned counterpart of an assumption agreement in
connection with the Loan Assumption and Release for such Assumption
Property.

5.3.10   
With respect to each AIMCO Loan Property, (i) the AIMCO Loan Documents, (ii) a
lender’s title insurance policy insuring the lien of each AIMCO Loan Security
Instrument as required by Section 4.8.4 above and (iii) either (x) a
duplicate insurance policy for all Hazard Insurance (as such term is defined in
Section 19(a) of the AIMCO Loan Security Instrument) or (y) an ACORD certificate
of insurance evidencing to the satisfaction of the AIMCO Lender all Hazard
Insurance required under the AIMCO Loan Security Instrument, in either case
naming the AIMCO Lender as an additional insured for all commercial liability
insurance and including a non-contributing, non-reporting mortgagee clause in
favor of the AIMCO Lender with respect to all property damage insurance for such
AIMCO Loan Property.

5.3.11   
With respect to the Chimneys of Cradlerock Property, the HUD Approval, the DHCR
Approval and a countersigned counterpart of the Assignment of HAP Contract.

5.3.12    Such other documents as are
reasonably necessary to consummate the transactions herein contemplated in
accordance with the terms of the Contract.

5.4       Closing Prorations
and Adjustments.

 
The prorations set forth in this Section 5.4 shall be on a
Property-by-Property basis and not among, or between, Properties and shall not
be allocated on an Applicable Share basis.

5.4.1     
General.  With respect to each Property, all normal and customarily
proratable items, including, without limitation, collected rents, operating
expenses, personal property taxes, other operating expenses and fees, shall be
prorated as of the Closing Date for such Property, the applicable Seller being
charged or credited, as appropriate, for all of the same attributable to the
period up to the Closing Date (and credited for any amounts paid by the
applicable Seller attributable to the period on or after the Closing Date, if
assumed by Purchaser) and Purchaser being responsible for, and credited or
charged, as the case may be, for all of the same attributable to the period on
and after the Closing Date.  Each Seller shall prepare a proration schedule
(the “Proration Schedule”) of the adjustments described in this
Section 5.4 prior to Closing.  Such adjustments shall be
paid by Purchaser to the applicable Seller (if the prorations result in a net
credit to such Seller) or by such Seller to Purchaser (if the prorations result
in a net credit to Purchaser for such Property), by increasing or reducing the
cash to be paid by Purchaser at the Closing for such Property.  

5.4.2      Operating
Expenses.  With respect to each Property, all of the operating,
maintenance, taxes (other than real estate taxes), prepaid sums and sums owed
under the Property Contracts assumed by Purchaser, and other expenses incurred
in operating such Property that such Seller customarily pays, and any other
costs incurred in the ordinary course of business for the management and
operation of such Property, shall be prorated on an accrual basis.  Each
Seller shall pay all such expenses that accrue prior to the Closing and
Purchaser shall pay all such expenses that accrue from and after the
Closing.

5.4.3     
Utilities.  With respect to each Property, the final readings and
final billings for utilities will be made if possible as of the Closing Date for
such Property, in which case each Seller shall pay all such bills as of the
Closing Date and no proration shall be made at the Closing with respect to
utility bills.  Otherwise, a proration shall be made based upon the
parties’ reasonable good faith estimate.  Each Seller shall be entitled to
the return of any deposit(s) posted by it with any utility company, and such
Seller shall notify each utility company serving its Property to terminate its
account, effective as of noon on the Closing Date for such Property.

5.4.4     
Real Estate Taxes.  Any real estate ad valorem or similar taxes for
a Property, or any installment of assessments payable in installments which
installment is payable in the calendar year of Closing, shall be prorated to the
date of Closing, based upon actual days involved.  The proration of real
property taxes or installments of assessments shall be based upon the assessed
valuation and tax rate figures (assuming payment at the
earliest time to allow for the maximum possible discount) for the year in which
the Closing occurs to the extent the same are available; provided, however, that
in the event that actual figures (whether for the assessed value of such
Property or for the tax rate) for the year of Closing are not available at the
Closing Date for such Property, the proration shall be made using figures from
the preceding year (assuming payment at the earliest time to allow for the
maximum possible discount).  The proration of real property taxes or
installments of assessments shall be final and not subject to re-adjustment
after Closing.  

5.4.5     
Property Contracts.  Purchaser shall assume at Closing the
obligations under the Property Contracts assumed by Purchaser; however,
operating expenses shall be prorated under Section 5.4.2.

5.4.6     
Leases.

5.4.6.1 With respect to each Property, all collected rent
(whether fixed monthly rentals, additional rentals, escalation rentals,
retroactive rentals, operating cost pass-throughs or other sums and charges
payable by Tenants under the Leases), income and expenses from any portion of a
Property shall be prorated as of the Closing Date.  Purchaser shall
receive all collected rent and income attributable to dates from and after the
Closing Date.  Each Seller shall receive all collected rent and income
attributable to dates prior to the Closing Date.  Notwithstanding the
foregoing, no prorations shall be made in relation to either (a) non-delinquent
rents which have not been collected as of the Closing Date, or (b) delinquent
rents existing, if any, as of the Closing Date (the foregoing (a) and (b)
referred to herein as the "Uncollected Rents").  In adjusting
for Uncollected Rents, no adjustments shall be made in a Seller's favor for
rents which have accrued and are unpaid as of the Closing, but Purchaser shall
pay to such Seller such accrued Uncollected Rents as and when collected by
Purchaser, after first applying collected rents to the payment of all current
obligations owing to Purchaser under the applicable Lease, and only then to
Uncollected Rents due to the applicable Seller.  Purchaser agrees to bill
Tenants of the Properties for all Uncollected Rents and to take reasonable
actions (not including lawsuits or formal proceedings) to collect Uncollected
Rents.  After the Closing, each Seller shall continue to have the right for
a period of six (6) months after the Closing Date, but not the obligation, in
its own name, to demand payment of and to collect Uncollected Rents owed to such
Seller by any Tenant, which right shall include, without limitation, the right
to continue or commence legal actions or proceedings against any Tenant and the
delivery of the Leases Assignment shall not constitute a waiver by any Seller of
such right.  Purchaser agrees to cooperate with each Seller in connection
with all efforts by such Seller to collect such Uncollected Rents and to take
all steps, whether before or after the Closing Date, as may be necessary to
carry out the intention of the foregoing, including, without limitation, the
delivery to each Seller, within seven (7) days after a written request, of any
relevant books and records (including, without limitation, rent statements,
receipted bills and copies of tenant checks used in payment of such rent), the
execution of any and all consents or other documents, and
the undertaking of any act reasonably necessary for the collection of such
Uncollected Rents by such Seller; provided, however, that Purchaser's obligation
to cooperate with a Seller pursuant to this sentence shall not obligate
Purchaser to terminate any Tenant Lease with an existing Tenant, file any formal
actions or proceedings, or evict any existing Tenant from a Property.

5.4.6.2 At Closing, with respect to each Property, Purchaser
shall receive a credit against the applicable Purchase Price in an amount equal
to the received and unapplied balance of all cash (or cash equivalent) Tenant
Deposits, including, but not limited to, security, damage, pet or other
refundable deposits paid by any of the Tenants to secure their respective
obligations under the Leases, together, in all cases, with any interest payable
to the Tenants thereunder as may be required by their respective Tenant Lease or
state or commonwealth law (the “Tenant Security Deposit
Balance”).  Any cash (or cash equivalents) held by a Seller which
constitutes the Tenant Security Deposit Balance shall be retained by the
applicable Seller in exchange for the foregoing credit against the applicable
Purchase Price and shall not be transferred by such Seller pursuant to this
Contract (or any of the documents delivered at Closing), but the obligation with
respect to the Tenant Security Deposit Balance nonetheless shall be assumed by
Purchaser.  The Tenant Security Deposit Balance shall not include any
non-refundable deposits or fees paid by Tenants to any Seller, either pursuant
to the Leases or otherwise.

5.4.7      Assumed Loan
Documents.  This Section 5.4.7 is applicable only to
Assumption Properties.  Each Seller of an Assumption Property shall be
responsible for all principal required to be paid under the terms of the Note
applicable to its Assumption Property prior to Closing, together with all
interest accrued under such Note prior to Closing, all of which may be a credit
against the Purchase Price for its Property as provided in Section
2.2.3.  Purchaser shall be responsible for all Assumption Lender Fees,
Required Loan Fund Amounts, and all other fees, penalties, interest and other
amounts due and owing under the Assumed Loan Documents as a result of any Loan
Assumption and Release.  As set forth in Section 4.6.6, any existing
reserves, impounds and other accounts maintained in connection with the
applicable Loan shall be assigned to Purchaser, and at Closing, Purchaser shall
pay to the applicable Seller an amount equal to the balance of such reserves,
impounds and accounts so assigned.

5.4.8     
AIMCO Loan.  Purchaser shall pay for all costs associated with the
making of the AIMCO Loans, as more particularly provided in Section 4.8.4
above.

5.4.9     
HAP Payments.  This Section 5.4.9 is applicable to only
the  Chimneys of Cradlerock Property.  To the extent that, at the
Closing, there are accrued but unpaid amounts due to the Seller of the Chimneys
of Cradlerock Property under the HAP Contract, then to the extent the Seller of
the Chimneys of Cradlerock Property or Purchaser receive such amounts at any
time after Closing, then such amounts shall be prorated on
an if, as and when received basis, in the same manner as other income of the
Chimneys of Cradlerock Property, with the Seller of the Chimneys of Cradlerock
Property receiving HAP payments attributable to dates prior to Closing of the
Chimneys of Cradlerock Property, and Purchaser receiving HAP payments
attributable to dates from and after the Closing Date of the Chimneys of
Cradlerock Property.

5.4.10   
Insurance.  No proration shall be made in relation to insurance
premiums and insurance policies will not be assigned to Purchaser.  Seller
shall have the risk of loss of the Properties until 11:59 p.m. the day prior to
the Closing Date, after which time the risk of loss shall pass to Purchaser and
Purchaser shall be responsible for obtaining its own insurance thereafter.

5.4.11   
Employees.  Each Seller and such Seller’s manager’s and on-site
employees for all Properties shall have their employment at the applicable
Property terminated as of the Closing Date.  Each Seller (or such Seller's
Property Manager) shall be solely responsible for the payment of any and all
wages, salaries, vacation and/or sick leave compensation, pension or profit
sharing benefits and other benefits or compensation inuring to the benefit of
any and all employees of any Seller, any affiliate or agent, employed at any
Property through the Closing and all such employees shall, at such Seller's (or
such Seller's Property Manager's) cost and expense, be terminated or otherwise
transferred to other employment by such Seller, its Property Manager or an
affiliate thereof.  

5.4.12   
Closing Costs.  With respect to each Property, (i) Purchaser shall
pay the cost of (a) any recording fees and sales, use, gross receipts or similar
taxes, (b) all mortgage recording fees and taxes with respect to any mortgage
loan obtained by Purchaser in connection with its purchase of the Property and
all costs (including, without limitation, indebtedness taxes) in connection with
the Loan Assumption and Release, (c) all costs relating to procurement of the
Title Commitment, the Title Policy and any requested endorsements, to the extent
required under Section 4.1 above, and (d) one-half of the customary
closing costs of the Escrow Agent and (ii) each Seller shall pay (x) the base
premium for its Title Policy, but only to the extent required by
Section 4.1above and (y) one-half of the
customary closing costs of the Escrow Agent.  With respect to the Lazy
Hollow Property, the Chimneys of Cradlerock Property and the Spyglass Property,
Seller and Purchaser shall complete and deliver the appropriate tax, affidavit,
recordation, intake sheet and transfer forms required by the State of Maryland
and Howard County and shall share equally in the costs of all applicable
transfer and recording taxes and fees.  With respect to the Hunter’s Chase
Property, Seller shall pay the grantor’s tax assessed on the transfer and
Purchaser shall pay all other applicable recordation and transfer taxes,
mortgage taxes, documentary stamp taxes and similar charges, if any, applicable
to the transfer of the Hunter’s Chase Property to Purchaser.  With respect
to the Hillmeade Property, the Arbours of Hermitage Property, the Parktown
Townhouse Property, the Westway Village Property and the Woods of Inverness
Property, Purchaser shall pay all recordation and transfer taxes, mortgage
taxes, documentary stamp taxes and similar charges, if
any, applicable to the transfer of such Properties to Purchaser (including any
and all taxes relating to the recording of the assumption agreement in
connection with the Loan Assumption and Release).

5.4.13    Utility
Contracts.  If any Seller has entered into an agreement for the
purchase of electricity, gas or other utility service for its Property or a
group of properties (including such Property) (a “Utility
Contract”), or an affiliate of such Seller has entered into a Utility
Contract, such Utility Contract shall be identified on the Seller Information
Schedule and, as set forth on the Seller Information Schedule, either (a)
Purchaser either shall assume the Utility Contract with respect to such
Property, or (b) the reasonably calculated costs of the Utility Contract
attributable to such Property from and after the Closing shall be paid to the
applicable Seller at the Closing and such Seller shall remain responsible for
payments under the Utility Contract.  

5.4.14   
Possession.  Possession of each Property, subject to the Leases,
Property Contracts, other than Terminated Contracts, and Permitted Exceptions,
shall be delivered to Purchaser at the Closing upon release from escrow of all
items to be delivered by Purchaser pursuant to Section 5.3including, without
limitation, the applicable Purchase Price.  To the extent reasonably
available to each Seller, originals or copies of its Leases and Property
Contracts, lease files, warranties, guaranties, operating manuals, keys
(including Tenant's master keys), access codes and other passwords, plans and
specifications for the Improvements to the Property, and such Seller's books and
records relating to its Property to be conveyed by such Seller (other than
proprietary information) (collectively, “Seller’s Property-Related Files
and Records”) regarding the applicable Property shall be made available
to Purchaser at such Property after the Closing.  Purchaser agrees, for a
period of not less than two (2) years after the Closing of a Property, except
with respect to the Chimneys of Cradlerock Property, which shall be for a period
of not less than three (3) years after the Closing of the Chimneys of Cradlerock
Property (the “Records Hold Period”), to (a) provide and allow the
applicable Seller reasonable access to Seller’s Property-Related Files and
Records for purposes of inspection and copying thereof, and (b) reasonably
maintain and preserve Seller’s Property-Related Files and Records.  If at
any time after the Records Hold Period, Purchaser desires to dispose of any
Seller’s Property-Related Files and Records, Purchaser must first provide the
applicable Seller prior written notice (the “Records Disposal
Notice”).  Such Seller shall have a period of thirty (30) days
after receipt of the Records Disposal Notice to enter the applicable Property
(or such other location where such records are then stored) and remove or copy
those of Seller’s Property-Related Files and Records that such Seller desires to
retain.  

5.5       Post Closing
Adjustments.

 
In general, and except as otherwise provided in this Contract, each Seller shall
be entitled to all income, and shall pay all expenses, relating to the operation
of its Property for the period prior to the Closing Date and Purchaser shall be
entitled to all income, and shall pay all expenses, relating to the operation of
such Property for the period commencing on and after the
Closing Date.  Purchaser or a Seller may request that Purchaser and such
Seller undertake to re-adjust any item on the Proration Schedule (or any item
omitted therefrom), with the exception of real property taxes which shall be
final and not subject to readjustment, in accordance with the provisions of
Section 5.4 of this Contract; provided, however, that neither party
shall have any obligation to re-adjust any items for any Property (a) after the
expiration of sixty (60) days after Closing, or (b) subject to such sixty (60)
day period, unless such items exceed Five Thousand  Dollars ($5,000.00) in
magnitude (either individually or in the aggregate) with respect to such
Property.  The provisions of this Section 5.5 shall survive the
Closing and delivery of the Deeds to Purchaser. 

ARTICLE VI
REPRESENTATIONS AND WARRANTIES OF SELLER AND
PURCHASER

6.1       Seller’s
Representations.

 
Except, in all cases, for any fact, information or condition disclosed in the
Title Documents, the Permitted Exceptions, the Property Contracts, or the
Materials, or which is otherwise known by Purchaser prior to the Closing, each
Seller, individually and severally with respect only to itself and its Property,
represents and warrants to Purchaser the following (collectively, the
“Seller’s Representations”) as of the Effective Date and as of the
Closing Date; provided that Purchaser’s remedies if any such Seller’s
Representations are untrue as of the Closing Date are limited to those set forth
in Section 8.1:

6.1.1     
Such Seller is duly organized, validly existing and in good standing under the
laws of the state of its formation set forth on the Seller Information Schedule;
and (x) subject to Section 8.2.4, (y) subject any approvals required
from a Lender for a Loan Assumption and Release with respect to any Assumption
Property and, any  Lender consents required for the making of the AIMCO
Loans and (z) subject to receipt of the HUD Approval and the DHCR Approval for
the transfer of the Chimneys of Cradlerock Property, has or at the Closing shall
have the entity power and authority to sell and convey its Property and to
execute the documents to be executed by such Seller and prior to the Closing
will have taken as applicable, all corporate, partnership, limited liability
company or equivalent entity actions required for the execution and delivery of
this Contract, and the consummation of the transactions contemplated by this
Contract.  The compliance with or fulfillment of the terms and conditions
hereof will not conflict with, or result in a breach of, the terms, conditions
or provisions of, or constitute a default under, any contract to which such
Seller is a party or by which such Seller is otherwise bound, which conflict,
breach or default would have a material adverse affect on such Seller’s ability
to consummate the transaction contemplated by this Contract or on the
Property.  Subject to Section 8.2.4, this Contract is a valid
and binding and enforceable agreement against such Seller in accordance with its
terms;

6.1.2     
Other than the Leases, such Seller's Property is not subject to any written
lease executed by such Seller or, to such Seller's knowledge, any other
possessory interests of any person;

6.1.3      Such Seller is not a
“foreign person,” as that term is used and defined in the Internal Revenue Code,
Section 1445, as amended;

6.1.4     
Except as set forth on the Seller Information Schedule and for any actions by
such Seller to evict Tenants under its Leases, to such Seller’s knowledge, there
are no actions, proceedings, litigation (including bankruptcy) or governmental
investigations or condemnation actions either pending or threatened against such
Seller’s Property;

6.1.5     
To such Seller’s knowledge, such Seller has not received any written notice of
any material default by such Seller under any of its Property Contracts that
will not be terminated on the Closing Date;

6.1.6     
To such Seller's knowledge, such Seller has not received any written notice from
a governmental agency of any uncured material violations of any federal, state,
county or municipal law, ordinance, order, regulation or requirement affecting
such Seller's Property;

6.1.7     
To such Seller's knowledge:  (a) no hazardous or toxic materials or other
substances regulated by applicable federal or state environmental laws are
stored by such Seller on, in or under its Property in quantities which violate
applicable laws governing such materials or substances, (b) such Seller's
Property is not used by such Seller for the storage, treatment, generation or
manufacture of any hazardous or toxic materials or other substances in a manner
which would constitute a violation of applicable federal or state environmental
laws, (c)  such Seller has not received, within one (1) year prior to the
Effective Date, written notice of water damage at its Property resulting in
suspected fungal growth that has not been remediated pursuant to such Seller's
normal operating procedures, and (d)  such Seller has not, within one (1)
year prior to the Effective Date, received written notice of a hazardous
substance condition at its Property or received a written order from a
governmental authority regarding a hazardous substance condition at its
Property;

6.1.8     
Such Seller has not intentionally misstated or misrepresented any information
prepared by it and contained in the Materials delivered pursuant to
Section 3.5.1;

6.1.9     
To such Seller's knowledge, the factual documentation of current operating and
financial results prepared by the applicable Seller (but not Seller Third-Party
Reports) concerning the applicable Property and disclosed to Purchaser hereunder
has been prepared in such Seller's ordinary course of business and is
substantially identical with the information relied on by such Seller in the
current ownership, operation and reporting of the applicable Property by such
Seller; provided, however, Seller has not provided, and is under no obligation
to provide, internal evaluations or similar internal analysis (as compared with
the results themselves);  

6.1.10    To such Seller’s knowledge, the
applicable Rent Roll (as updated pursuant to Section 5.2.14) is
accurate in all material respects.  Prior to the expiration of the
Feasibility Period, at Purchaser’s request, each Seller shall provide Purchaser
with a current Rent Roll and such updated Rent Roll shall, to the knowledge of
such Seller, be accurate in all material respects; and

6.1.11    To such Seller’s knowledge, the
applicable Property Contracts List (as updated pursuant to
Section 5.2.15) is accurate in all material respects.

6.2       AS-IS.

 
Except for Seller’s Representations, each Property is expressly purchased and
sold “AS IS,” “WHERE IS,” and “WITH ALL FAULTS.”  The Purchase Price for
each Property and the terms and conditions set forth herein 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 Purchaser shall
have the benefit of, but is not relying upon, any information provided by
Sellers or Broker or statements, representations or warranties, express or
implied, made by or enforceable directly against Sellers or Broker, including,
without limitation, any relating to the value of any Property, the physical or
environmental condition of any Property, any state, federal, county or local
law, ordinance, order or permit; or the suitability, compliance or lack of
compliance of any Property with any regulation, or any other attribute or matter
of or relating to any Property (other than any covenants of title contained in
the Deed conveying a Property and Seller’s Representations with respect to such
Property).  Purchaser agrees that Sellers shall not be responsible or
liable to Purchaser for any defects, errors or omissions, or on account of any
conditions affecting the Properties.  Purchaser, its successors and
assigns, and anyone claiming by, through or under Purchaser, hereby fully
releases each of Seller’s Indemnified Parties 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 any of Seller’s Indemnified Parties with
respect to any and all Losses arising from or related to any defects, errors,
omissions or other conditions affecting the Properties.  Purchaser
represents and warrants that, as of the date hereof and as of the Closing Date,
it has and shall have reviewed and conducted 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 in and about the Properties), reports,
investigations and inspections as it deems appropriate in connection with the
Properties.  If Sellers provide or have 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 Properties, including, without limitation, the offering prepared by
Broker, Purchaser and Sellers agree that Sellers have done so or shall do so
only for the convenience of the parties, Purchaser shall not rely thereon and
the reliance by Purchaser upon any such documents, summaries, opinions or work
product shall not create or give rise to any liability of or against any of
Seller’s Indemnified Parties.  Purchaser acknowledges and agrees that no
representation has been made and no responsibility is assumed by Sellers with
respect to current and future applicable zoning or building code requirements or
the compliance of the Properties with any other laws, rules, ordinances or
regulations, the financial earning capacity or expense history of the
Properties, the continuation of contracts, continued occupancy levels of the
Properties, or any part thereof, or the continued occupancy by tenants of any
Leases or, without limiting any of the foregoing, occupancy at Closing. 
Prior to Closing, each Seller shall have the right, but not the obligation, to
enforce its rights against any and all of its Property occupants, guests or tenants.  Purchaser agrees that the
departure or removal, prior to Closing, of any of such guests, occupants or
tenants shall not be the basis for, nor shall it give rise to, any claim on the
part of Purchaser, nor shall it affect the obligations of Purchaser under this
Contract in any manner whatsoever; and Purchaser shall close title and accept
delivery of the applicable Deed with or without such tenants in possession and
without any allowance or reduction in the applicable Purchase Price under this
Contract.  Purchaser hereby releases Sellers from any and all claims and
liabilities relating to the foregoing matters.

6.3       Survival of Seller’s
Representations.

 
Sellers and Purchaser agree that Seller’s Representations shall survive Closing
of such Seller’s Property for a period of  twelve (12) months (the
“Survival Period”).  No Seller shall have liability after the
Survival Period with respect to any of its Seller’s Representations contained
herein except to the extent that Purchaser has requested arbitration against
such Seller during the Survival Period for breach of any of such Seller’s
Representations.  Each Seller shall be liable only for the breach of its
own Seller’s Representations.  Further, the liability for each Seller for
breach of its Seller’s Representations shall be limited to, and capped at, Three
Hundred Thousand  Dollars ($300,000.00) for such Seller’s Property for
which a breach of Seller’s Representations occurred, on a Property-by-Property
basis if a Seller is selling more than one Property.  Such cap on liability
shall apply for any individual breach or in the aggregate for all breaches of
such Seller’s Representations with respect to such Property.  Purchaser
shall not be entitled to bring any claim for a breach of Seller’s
Representations unless the claim for damages (either in the aggregate or as to
any individual claim) by Purchaser for a Property exceeds Five Thousand 
Dollars ($5,000.00).  In the event that a Seller breaches any
representation contained in Section 6.1 and Purchaser had knowledge
of such breach prior to the Closing Date, and elected to close regardless,
Purchaser shall be deemed to have waived any right of recovery, and such Seller
shall not have any liability in connection therewith.

6.4       Definition of
Seller’s Knowledge.

 
Any representations and warranties made "to the knowledge of such Seller" shall
not be deemed to imply any duty of inquiry.  For purposes of this Contract,
the term Seller's "knowledge" shall mean and refer only to actual
knowledge of the Designated Representative of such Seller and shall not be
construed to refer to the knowledge of any other partner, officer, director,
agent, employee or representative of such Seller, or any affiliate of such
Seller, or to impose upon such Designated Representative any duty to investigate
the matter to which such actual knowledge or the absence thereof pertains, or to
impose upon such Designated Representative any individual personal
liability.  

6.5       Representations and
Warranties of Purchaser.

 
For the purpose of inducing Sellers to enter into this Contract and to
consummate the sale and purchase of the Properties in accordance herewith,
Purchaser represents and warrants to Sellers the following as of the Effective
Date and as of the Closing Date, which shall survive the Closing for the
Survival Period:

6.5.1     
Purchaser is a limited liability company duly organized, validly existing and in
good standing under the laws of Delaware.

6.5.2     
Purchaser, acting through any of its or their duly empowered and authorized
officers or members, has all necessary entity power and authority to own and use its properties and to transact the business in
which it is engaged, and has full power and authority to enter into this
Contract, to execute and deliver the documents and instruments required of
Purchaser herein, and to perform its obligations hereunder; and no consent of
any of Purchaser’s partners, directors, officers or members are required to so
empower or authorize Purchaser.  The compliance with or fulfillment of the
terms and conditions hereof will not conflict with, or result in a breach of,
the terms, conditions or provisions of, or constitute a default under, any
contract to which Purchaser is a party or by which Purchaser is otherwise bound,
which conflict, breach or default would have a material adverse affect on
Purchaser’s ability to consummate the transaction contemplated by this
Contract.  This Contract is a valid, binding and enforceable agreement
against Purchaser in accordance with its terms.

6.5.3     
No pending or, to the knowledge of Purchaser, threatened litigation exists which
if determined adversely would restrain the consummation of the transactions
contemplated by this Contract or would declare illegal, invalid or non-binding
any of Purchaser’s obligations or covenants to Sellers.

6.5.4     
Other than Seller’s Representations, Purchaser has not relied on any
representation or warranty made by Sellers or any representative of Sellers
(including, without limitation, Broker) in connection with this Contract and the
acquisition of the Properties.

6.5.5     
The Broker and its affiliates do not, and will not at the Closing, have any
direct or indirect legal, beneficial, economic or voting interest in Purchaser
(or in an assignee of Purchaser, which pursuant to Section 13.3,
acquires any Property at the Closing), nor has Purchaser or any affiliate of
Purchaser granted (as of the Effective Date or the Closing Date) the Broker or
any of its affiliates any right or option to acquire any direct or indirect
legal, beneficial, economic or voting interest in Purchaser.

6.5.6     
Purchaser is not a Prohibited Person.

6.5.7     
To Purchaser’s knowledge, none of its investors, affiliates or brokers or other
agents (if any), acting or benefiting in any capacity in connection with this
Contract is a Prohibited Person.

6.5.8     
The funds or other assets Purchaser will transfer to Sellers under this Contract
are not the property of, or are not beneficially owned, directly or indirectly,
by a Prohibited Person.

6.5.9     
The funds or other assets Purchaser will transfer to Sellers under this Contract
are not the proceeds of specified unlawful activity as defined by 18 U.S.C.
§ 1956(c)(7).

6.5.10   
Purchaser represents and warrants that, prior to the Closing of the Chimneys of
Cradlerock Property, Purchaser shall either (i) have taken all steps and
provided all information required by HUD in order to register as a participant
under HUD's Active Partner Performance System or any
similar electronic filing system presently maintained by HUD (the “APPS”)
or (ii) in accordance with the Preservation Approval Process Improvement Act of
2007 (PL 110-35), which required HUD to suspend mandatory processing of Previous
Participation Certificates (HUD form 2530) under APPS, have made a paper filing
of such form.  Purchaser agrees to make all filings required to be made
with HUD, either electronically or on paper in accordance with the previous
participation process, including any advance notification required in connection
with an event that will trigger 2530 approval.  If at any time HUD shall
reinstate mandatory processing of previous participation certificates under
APPS, or any similar electronic filing system, Purchaser shall make any required
filings using such system.

6.5.11   
Neither Purchaser nor any affiliate of Purchaser (as defined in 24 CFR §
200.215) has been debarred, suspended, or voluntarily excluded from
participation in any federal grant or procurement program or any program of a
state government or agency, or has been the subject of a limited denial of
participation issued pursuant to 24 CFR Part 24, Subpart G, or has been denied
approval for participation in a HUD project pursuant to 24 CFR Part 200, subpart
H, at any time during the ten (10) years preceding the date of this
Contract.

6.5.12   
No approval of Purchaser or any affiliate of Purchaser (as defined in 24 CFR §
200.215) for participation in a HUD project pursuant to 24 CFR Part 200, Subpart
H, has been delayed for more than  thirty (30) days after submission of HUD
Form 2530, nor have any of them been denied preliminary approval (or not
received preliminary approval within ninety (90) days of application therefor)
as transferee under a transfer of physical assets application requiring full or
modified review, in each case within the twelve (12) calendar months preceding
the date of this Contract.

ARTICLE VII
OPERATION OF THE PROPERTIES

7.1       Leases and Property
Contracts.

 
During the period of time from the Effective Date to the Closing Date, in the
ordinary course of business each Seller may, with respect to its Property, enter
into new Property Contracts, new Leases, renew existing Leases or modify,
terminate or accept the surrender or forfeiture of any of the Leases, modify any
Property Contracts, or institute and prosecute any available remedies for
default under any Lease or Property Contract without first obtaining the written
consent of Purchaser; provided, however, each Seller agrees that any such new
Property Contracts or any new or renewed Leases shall be on terms consistent
with Seller’s ordinary course of business and shall not have a term in excess of
one (1) year without the prior written consent of Purchaser, which consent shall
not be unreasonably withheld, conditioned or delayed.  Notwithstanding
anything in this Contract to the contrary, at any time between the Effective
Date and the Closing of the Chimneys of Cradlerock Property, to the extent that
Purchaser is either not using commercially reasonable efforts to diligently
obtain a renewal of the HAP Contract pursuant to Section 4.11 or to the
extent Seller is otherwise required by HUD in order to preserve the HAP
Contract, the Seller of the Chimneys of Cradlerock Property must use
commercially reasonable efforts to renew the HAP Contract for the Chimneys of Cradlerock Property or to enter into a new
HAP Contract for the Chimneys of Cradlerock Property.

7.2       General Operation of
Property.

 
Except as specifically set forth in this Article VII, each Seller shall operate
its Property after the Effective Date in the ordinary course of business, and
except as necessary in such Seller’s sole discretion to address (a) any life or
safety issue at its Property, (b) the Westway Village Repair Work or (c) any
other matter which in such Seller’s reasonable discretion materially adversely
affects the use, operation or value of such Property, such Seller will not make
any material alterations to its Property or remove any material Fixtures and
Tangible Personal Property without the prior written consent of Purchaser which
consent shall not be unreasonably withheld, conditioned or delayed.

7.3       Liens and Title
Defects.

 
Each Seller covenants that, between the Effective Date and the Closing Date, it
will not voluntarily create or cause any lien, encumbrance or other material
defect to title to attach to its Property (other than Leases and Property
Contracts as provided in Section 7.1) unless Purchaser approves such
lien, encumbrance or other title matter, which approval shall not be
unreasonably withheld, conditioned or delayed.  If Purchaser approves any
such subsequent lien, encumbrance or other title matter, the same shall be
deemed a Permitted Encumbrance for all purposes hereunder.  If a Seller
defaults in its obligations under this Section 7.3, Purchaser may
exercise any of its remedies under Section 10.2.  

7.4       Tax Appeals.

 
Purchaser acknowledges that certain of the Sellers may have filed (or may file)
an appeal (the "Appeal") with respect to real estate ad valorem or other
similar property taxes applicable to the Property (the "Property Taxes").
The following provisions shall survive the Closing and delivery of the Deeds to
Purchaser.

7.4.1     
If such Appeal relates to any Tax Year prior to the Tax Year in which the
Closing occurs, such Seller shall be entitled, in such Seller's sole discretion,
to continue to pursue such Appeal after the Closing Date, and, in the event that
the Appeal is successful in reducing the amount of Property Taxes payable with
respect to any such prior Tax Year, the applicable Seller shall be entitled to
the full amount of any rebate, refund or reduction (collectively, a
"Refund") resulting from the Appeal.  Seller shall not be
obligated to continue to pursue any Appeal with respect to the Property,
including, without limitation, any Appeal that relates to a Tax Year during or
after the Tax Year in which Closing occurs.  If Purchaser receives any
refund of Property Taxes for a prior Tax Year, Purchaser promptly shall remit
the same to the applicable Seller.

7.4.2     
If such Appeal relates to the Tax Year in which Closing occurs, then, prior to
the Closing, the applicable Seller shall notify Purchaser whether such Seller
desires to continue to process the Appeal from and after the Closing Date. 
If such Seller fails to notify Purchaser of its election to continue the Appeal,
such Seller will be deemed to have elected not to continue the Appeal from and
after the Closing Date and the provisions of Section 7.4.2.2 shall
apply.

7.4.2.1  
If Seller elects to continue the Appeal, then, from and after the Closing Date,
Seller agrees that it will continue, at such Seller’s sole cost and expense, to reasonably process the Appeal to
conclusion with the applicable taxing authority (including any further appeals
which such Seller deems reasonable to pursue).  In the event that the
Appeal is successful in reducing the amount of Property Taxes payable with
respect to the Tax Year in which Closing occurs, then Purchaser and such Seller
shall share any Refund on a pro rata basis (in accordance with the number of
days in the Tax Year of Closing that each held title to the Property) after
first reimbursing such Seller for its actual, reasonable and documented
third-party costs (collectively, the "Third-Party Costs") incurred
in connection with the Appeal.  If Third-Party Costs equal or exceed the
amount of the Award, then such Seller shall be entitled to the full amount of
the Award.

7.4.2.2  
If a Seller does not elect to continue the Appeal, then, from and after the
Closing Date, it shall be at the sole discretion of Purchaser whether to
continue, at Purchaser's sole cost and expense, to reasonably process the Appeal
to conclusion with the applicable taxing authority (including any further
appeals which Purchaser deems reasonable to pursue).  In the event that the
Appeal is successful in reducing the amount of Property Taxes payable with
respect to the Tax Year in which Closing occurs, then Purchaser and the
applicable Seller shall share any Refund on a pro rata basis (in accordance with
the number of days in the Tax Year of Closing that each held title to the
Property) after first reimbursing each of Purchaser and the applicable Seller
for their respective Third-Party Costs incurred in connection with the
Appeal.  If Third-Party Costs equal or exceed the amount of the Award, then
the Award shall be applied to such Third-Party Costs on a pro rata basis, with
each of Purchaser and Seller receiving a portion of the Award equal to the
product of (i) a fraction, the numerator of which is the respective party's
Third-Party Costs, and the denominator of which is the total of both parties'
Third-Party Costs, and (ii) the amount of the Award.

7.5       Westway Village
Repair Work.

 
The terms of this Section 7.5 apply only to the Westway Village
Property.  Purchaser acknowledges that certain units (the “Damaged
Units”) at the Westway Village Property have been damaged, and Seller has
commenced making repairs to the Damaged Units (the “Westway Village
Repair Work”).  The Seller of the Westway Village Property, at its
sole cost and expense, shall diligently proceed to complete the Westway Village
Repair Work prior to the Closing of the Westway Village Property and, if and to
the extent a new certificate of occupancy is required by applicable law for the
lawful use and occupancy of each Damaged Unit, use commercially reasonable
efforts to obtain such certificate of occupancy for each of the Damaged
Units.  If the Westway Village Repair Work is not completed prior to the
Closing, then the Closing shall occur in accordance with the terms of the
Contract and, at the Closing, (i) Seller shall assign, and Purchaser shall
assume, all construction and other contracts entered into by Seller in
connection with such Westway Village Repair Work and (ii) Seller shall give
Purchaser a credit against the Purchase Price in the amount necessary to
complete the Westway Village Repair Work.  Notwithstanding the foregoing,
if and to the extent a new certificate of occupancy is required by applicable
law for the lawful use and occupancy of each Damaged Unit and Seller has not
obtained such new certificate of occupancy by Closing, then Seller shall assign Seller’s insurance claim relating to the
loss of rent attributable to such Damaged Unit as a result of not having
obtained a certificate of occupancy.

ARTICLE VIII
CONDITIONS
PRECEDENT TO CLOSING

8.1       Purchaser’s
Conditions to Closing.

 
Purchaser’s obligation to close under this Contract for a particular Property
shall be subject to and conditioned upon the fulfillment of the following
conditions precedent with respect to such Property:

8.1.1      All of the documents
required to be delivered by Sellers to Purchaser at the Closing pursuant to the
terms and conditions hereof shall have been delivered;

8.1.2      Each of Seller’s
Representations shall be true in all material respects as of the Closing
Date;

8.1.3      Each Seller shall have
complied with, fulfilled and performed in all material respects each of the
covenants, terms and conditions to be complied with, fulfilled or performed by
such Seller hereunder; and

8.1.4     
Neither Seller nor any of Seller’s general partners shall be a debtor in any
bankruptcy proceeding nor shall have been in the last six (6) months a debtor in
any bankruptcy proceeding, and there shall not be any pending litigation
which, if adversely determined, would restrain the consummation of any of the
transactions contemplated by this Contract or declare illegal, invalid or
nonbinding any of the covenants or obligations of the Seller;

8.1.5     
With respect to each Assumption Property, provided that Purchaser has complied
with the terms of Section 4.6, the applicable Loan Assumption and Release
for the applicable Assumption Property shall have occurred;

8.1.6     
With respect to the Purchaser Loan Properties, provided that Purchaser has
complied with the terms of Section 4.7, Purchaser’s Lender is committed
to fund the Purchaser’s Loan for the applicable Purchaser Loan Property;
and

8.1.7     
With respect to each AIMCO Loan Property, the AIMCO Lender shall be ready,
willing and able to fund the AIMCO Loan for such AIMCO Loan Property.

Notwithstanding
anything to the contrary, there are no other conditions to Purchaser’s
obligation to Close except as expressly set forth in this
Section 8.1.  If any condition set forth in
Sections 8.1 is not met, Purchaser may (a) waive any of the
foregoing conditions and proceed to Closing on the Closing Date with no offset
or deduction from the Purchase Price for any Property except as otherwise
provided under Section 7.5 and Article XI hereof, or (b) deliver a
Termination Notice to Seller’s Representative for the Property for which there
was such a failure of condition and, if such failure constitutes a default by
Seller, exercise any of its remedies under Section 10.2.  The termination of this
Contract by Purchaser pursuant to this Section 8.1 must be exercised
by written notice from Purchaser to Sellers’ Representative by 12:00 p.m. on the
Closing Date for such Property.  If Purchaser issues a Termination Notice
pursuant to this Section 8.1, then the provisions of Section 13.33
shall apply with respect to the Property(ies) identified in such Termination
Notice.  

8.2       Sellers’ Conditions
to Closing.

 
Without limiting any of the rights of any Seller elsewhere provided for in this
Contract, each Seller’s obligation to close with respect to conveyance of its
Property under this Contract shall be subject to and conditioned upon the
fulfillment of the following conditions precedent:

8.2.1      All of the documents and
funds required to be delivered by Purchaser to Seller at the Closing pursuant to
the terms and conditions hereof shall have been delivered;

8.2.2     
Each of the representations, warranties and covenants of Purchaser contained
herein shall be true in all material respects as of the Closing Date;

8.2.3     
Purchaser shall have complied with, fulfilled and performed in all material
respects each of the covenants, terms and conditions to be complied with,
fulfilled or performed by Purchaser hereunder;

8.2.4     
The Seller of the Arbours of Hermitage Property has informed Purchaser that in
connection with the sale of the Arbours of Hermitage Property pursuant to this
Contract, the Seller of the Arbours of Hermitage Property is required to file an
information statement with the United States Securities Exchange Commission (the
“SEC”) pursuant to Rule 14(c) of the Securities Exchange Act of
1934, as amended (the “Information Statement”) and to distribute
the Information Statement to such Seller's limited partners.  The Seller of
the Arbours of Hermitage Property shall promptly file the Information Statement
with the SEC after the Effective Date and use commercially reasonably efforts to
diligently process the Information Statement.  It shall be a condition to
the Seller of the Arbours of Hermitage Property closing obligations hereunder
that (A) either (x) such Seller has not received any comments on the Information
Statement from SEC for a period of ten (10) Business Days after the Information
Statement has been filed with the SEC or (y) if such Seller has received
comments from the SEC within such ten (10) Business Day period, such comments
have been addressed to the satisfaction of the SEC and the SEC has confirmed
that it has no further comments to the Information Statement and (B) thereafter
the Information Statement has been delivered to each of the limited partners of
such Seller and a period of not less than twenty (20) calendar days has
expired;

8.2.5      With respect to each
Assumption Property, the applicable Loan Assumption and Release for the
applicable Assumption Property shall have occurred; and

8.2.6      There shall not be any
pending litigation which, if adversely determined, would restrain the
consummation of any of the transactions contemplated by this Contract or declare
illegal, invalid or nonbinding any of the covenants or obligations of the
Purchaser.

If
any of the foregoing conditions in Sections 8.2.1 through 8.2.6 to a
Seller’s obligation to close with respect to conveyance of its Property under
this Contract are not met, such Seller may (a) waive any of the foregoing
conditions and proceed to Closing on the Closing Date for such Seller’s Property
or (b) terminate this Contract with respect to its Property, and, if such
failure constitutes a default by Purchaser, exercise any of its remedies under
Section 10.1.  The termination of this Contract by any Seller
pursuant to this Section 8.2 shall be exercised by written notice
from Sellers’ Representative to Purchaser by 12:00 p.m. on the Closing Date for
such Property.  If a Seller terminates this Contract with respect to this
Section 8.2, then the provisions of Section 13.33 shall apply with
respect to the Property(ies) identified in such termination notice.

ARTICLE IX
BROKERAGE

9.1       Indemnity.

 
Each Seller, severally and individually, represents and warrants to Purchaser
that it has dealt only with the broker listed for each Property in the Seller
Information Schedule (collectively, “Sellers’ Broker”) and Candor Group,
Inc. (the “Transaction Broker”), who is the transaction broker, in
connection with this Contract.  Each Seller, severally and individually,
and Purchaser each represents and warrants to the other that, other than with
respect to a designated Sellers' Broker and Transaction Broker, it has not dealt
with or utilized the services of any other real estate broker, sales person or
finder in connection with this Contract, and each party agrees to indemnify,
hold harmless, and, if requested in the sole and absolute discretion of the
indemnitee, defend (with counsel approved by the indemnitee) the other party
from and against all Losses relating to brokerage commissions and finder's fees
arising from or attributable to the acts or omissions of the indemnifying
party.  

9.2       Broker
Commission.

 
If the Closing occurs, then, at the Closing for such Property, (i) each Seller
agrees to pay the Sellers’ Broker for such Property a commission according to
the terms of a separate contract and (ii) each Seller agrees to pay the
Transaction Broker a commission according to the terms of a separate
contract.  Sellers’ Broker and the Transaction Broker shall not be deemed a
party or third party beneficiary of this Contract.  As a condition to each
Seller’s obligation to pay the commission, each Sellers’ Broker and the
Transaction Broker shall execute the signature page for such Broker attached
hereto solely for purposes of confirming the matters set forth therein.

9.3       Texas Real Estate
License Act.

 
This Section 9.3 only applies to the Parktown Townhouse Property, the
Westway Village Property and the Woods of Inverness Property.  The Texas
Real Estate License Act requires written notice to Purchaser from any licensed
real estate broker or salesman who is to receive a commission, that Purchaser
should have any attorney of its own selection examine an abstract of title to
the property being acquired or that Purchaser should be furnished with or should
obtain a title insurance policy.  Purchaser should not rely upon any oral
representations about the Property from any source.  Each Broker is not
qualified to render property inspections, surveys,
engineering studies, environmental assessments, or inspections to determine
compliance with zoning, governmental regulations, or laws.  Purchaser
should seek experts to render such services. Selection of inspectors and
repairmen is the responsibility of the Purchaser and not the Broker.

ARTICLE X
DEFAULTS AND
REMEDIES

10.1     Purchaser Default.

 
If Purchaser defaults in its obligations hereunder to (a) deliver the
Initial Deposit or the Additional Deposit (or any other deposit or payment
required of Purchaser hereunder), (b) deliver to Sellers the deliveries
specified under Section 5.3 on the date required thereunder, or (c)
deliver the Purchase Price for each Property at the time required by
Section 2.2.4 and close on the purchase of each of the Properties on
the applicable Closing Date for each Property, then, immediately and without the
right to receive notice or to cure pursuant to Section 2.3.3,
Purchaser shall forfeit the Deposit, and the Escrow Agent shall deliver the
Deposit to Sellers, and neither party shall be obligated to proceed with the
purchase and sale of the Properties.  If Purchaser defaults in any of its
other representations, warranties or obligations under this Contract, and such
default continues for more than ten (10) days after written notice from Sellers’
Representative, then Purchaser shall forfeit the Deposit, and the Escrow Agent
shall deliver the Deposit to Sellers, and neither party shall be obligated to
proceed with the purchase and sale of the Property.  The Deposit is
liquidated damages and recourse to the Deposit is, except for Purchaser’s
indemnity and confidentiality obligations hereunder and except as set forth in
Section 13.16 below, Sellers’ sole and exclusive remedy for Purchaser’s
failure to perform its obligation to purchase the Properties or breach of a
representation or warranty.  Sellers expressly waive the remedies of
specific performance and additional damages for such default by Purchaser. 
SELLERS AND PURCHASER ACKNOWLEDGE THAT SELLERS’ DAMAGES WOULD BE DIFFICULT TO
DETERMINE, AND THAT THE DEPOSIT IS A REASONABLE ESTIMATE OF SELLERS’ DAMAGES
RESULTING FROM A DEFAULT BY PURCHASER IN ITS OBLIGATION TO PURCHASE THE
PROPERTIES.  SELLERS AND PURCHASER FURTHER AGREE THAT THIS SECTION
10.1 IS INTENDED TO AND DOES LIQUIDATE THE AMOUNT OF DAMAGES DUE SELLERS,
AND SHALL BE SELLERS’ EXCLUSIVE REMEDY AGAINST PURCHASER, BOTH AT LAW AND IN
EQUITY, ARISING FROM OR RELATED TO A BREACH BY PURCHASER OF ITS OBLIGATION TO
CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THIS CONTRACT, OTHER THAN WITH
RESPECT TO PURCHASER’S INDEMNITY AND CONFIDENTIALITY OBLIGATIONS HEREUNDER AND
SELLERS RIGHT TO COLLECT ATTORNEY FEES AND EXPENSES UNDER SECTION 13.16
BELOW.

10.2     Seller Default.

 
If a Seller defaults (i) in its obligations hereunder to deliver to Escrow Agent
the deliveries specified under Section 5.2 with respect to such Seller on
the date required thereunder, or (ii) to close on the sale of such Seller’s
Property on the Closing Date, then, provided that Purchaser is not in default
under this Contract, at Purchaser's election and as Purchaser's sole and
exclusive remedy, Purchaser may exercise its rights set forth in this Section
10.2 without any further opportunity of such Seller to receive notice or to
cure such default.  If a Seller, prior to the Closing, defaults in its
other covenants or obligations under this Contract (other than such Seller’s
obligation to close on the sale of such Seller’s Property on the Closing Date),
and such default continues for more than ten (10) days after written notice from
Purchaser, then, provided that Purchaser is not in default
under this Contract, at Purchaser's election and as Purchaser's sole and
exclusive remedy, Purchaser may either (a) subject to the conditions below, seek
specific performance of the defaulting Seller’s obligation to deliver its Deed
pursuant to this Contract (but not damages), or (b) give a Termination Notice to
Sellers’ Representative of Purchaser’s decision to terminate this Contract for
the Property for which there was such a default and receive a return of the
Allocated Deposit Amount for such Property from Escrow Agent.  If
Purchaser, pursuant to any provision of this Section 10.2, elects to
terminate this Contract for the Property for which there was a default, then
Purchaser may recover, as its sole recoverable damages (but without limiting its
right to receive a refund of the Allocated Deposit Amount for such terminated
Property), its direct and actual out-of-pocket expenses and costs (documented by
paid invoices to third parties) in connection with the Property for which this
Contract has been terminated, which damages shall not exceed $75,000 per
terminated Property.  Purchaser may seek specific performance of defaulting
Seller’s obligation to deliver the Deed pursuant to this Contract only if, as a
condition precedent to initiating such litigation for specific performance,
Purchaser first shall (i) not otherwise be in default under this Contract and
(ii) file suit therefor with the court on or before the ninetieth
(90th) day after the Closing Date.  Purchaser agrees that it
shall promptly deliver to each Seller an assignment of all of Purchaser’s right,
title and interest in and to (together with possession of) all plans, studies,
surveys, reports, and other materials paid for with the out-of-pocket expenses
reimbursed by Sellers pursuant to the foregoing sentence.  SELLERS AND
PURCHASER FURTHER AGREE THAT THIS SECTION 10.2 IS INTENDED TO AND DOES
LIMIT THE AMOUNT OF DAMAGES DUE PURCHASER AND THE REMEDIES AVAILABLE TO
PURCHASER, AND SHALL BE PURCHASER’S EXCLUSIVE REMEDY AGAINST SELLERS, BOTH AT
LAW AND IN EQUITY ARISING FROM OR RELATED TO A BREACH BY ANY SELLER OF ITS
REPRESENTATIONS, WARRANTIES, OR COVENANTS OR ITS OBLIGATION TO CONSUMMATE THE
TRANSACTIONS CONTEMPLATED BY THIS CONTRACT.  UNDER NO CIRCUMSTANCES MAY
PURCHASER SEEK OR BE ENTITLED TO RECOVER ANY SPECIAL, CONSEQUENTIAL, PUNITIVE,
SPECULATIVE OR INDIRECT DAMAGES, ALL OF WHICH PURCHASER SPECIFICALLY WAIVES,
FROM SELLERS FOR ANY BREACH BY A SELLER, OF ITS REPRESENTATIONS, WARRANTIES OR
COVENANTS OR ITS OBLIGATIONS UNDER THIS CONTRACT.  PURCHASER SPECIFICALLY
WAIVES THE RIGHT TO FILE ANY LIS PENDENS OR ANY LIEN AGAINST ANY PROPERTY UNLESS
AND UNTIL IT HAS IRREVOCABLY ELECTED TO SEEK SPECIFIC PERFORMANCE OF THIS
CONTRACT AND HAS FILED AND IS DILIGENTLY PURSUING AN ACTION SEEKING SUCH
REMEDY.

ARTICLE XI
RISK OF LOSS
OR CASUALTY

11.1     Major Damage.

 
In the event that a Property is damaged or destroyed by fire or other casualty
prior to Closing, and the cost for demolition, site cleaning, restoration,
replacement, or other repairs (collectively, the “Repairs”) is more than
ten percent (10%) of the Purchase Price for such Property, then the applicable
Seller shall have no obligation to make such Repairs, and shall notify Purchaser
in writing of such damage or destruction (the “Damage Notice”). 
Within ten (10) days after Purchaser’s receipt of the Damage Notice, Purchaser
may elect at its option to give a Termination Notice for the damaged Property to
Sellers’ Representative.  If Sellers’ Representative receives a Termination
Notice pursuant to this Section 11.1, then the
provisions of Section 13.33 shall apply to the Property with respect to
which this Contract has been so terminated.  

11.2     Minor Damage.

 
In the event that a Property is damaged or destroyed by fire or other casualty
prior to the Closing, and the cost of Repairs is equal to or less than ten
percent (10%) of the Purchase Price for such Property, then this transaction
shall be closed in accordance with Section 11.3, notwithstanding
such casualty.  In such event, applicable Seller may at its election
endeavor to make such Repairs to the extent of any recovery from insurance
carried on the Property, if such Repairs can be reasonably effected before the
Closing.  Regardless of applicable Seller’s election to commence such
Repairs, or applicable Seller’s ability to complete such Repairs prior to
Closing, this transaction shall be closed in accordance with
Section 11.3 below.

11.3     Closing.

 
In the event Purchaser fails to terminate this Contract following a casualty as
set forth in Section 11.1, or in the event of a casualty as set
forth in Section 11.2, then this transaction shall be closed in
accordance with the terms of the Contract, at applicable Seller’s election,
either (i) for the full Purchase Price, notwithstanding any such casualty, in
which case Purchaser shall, at Closing, execute and deliver an assignment and
assumption (in a form reasonably required by the applicable Seller) of such
Seller’s rights and obligations with respect to the insurance claim related to
such casualty, and thereafter Purchaser shall receive all insurance proceeds
pertaining to such claim, less any amounts which may already have been spent by
applicable Seller for Repairs (plus a credit against the Purchase Price at
Closing in the amount of any deductible payable by applicable Seller in
connection therewith and any shortfall in the amount of the insurance to cover
the costs of the Repairs); or (ii) for the full Purchase Price less a credit to
Purchaser in the amount necessary to complete such Repairs (less any amounts
which may already have been spent by applicable Seller for Repairs).

11.4     Repairs.

 
To the extent that applicable Seller elects to commence any Repairs prior to
Closing, then applicable Seller shall be entitled to receive and apply available
insurance proceeds to any portion of such Repairs completed or installed prior
to Closing, with Purchaser being responsible for completion of such Repairs
after Closing from the balance of any available insurance proceeds, subject to
the provisions of Section 11.3.  To the extent that any Repairs have
been commenced prior to Closing, then the Property Contracts shall include, and
Purchaser shall assume at Closing, all construction and other contracts entered
into by applicable Seller in connection with such Repairs, which construction
contracts shall be subject to Purchaser’s prior written approval (not to be
unreasonably withheld, conditioned or delayed).  

ARTICLE XII
EMINENT
DOMAIN

12.1    
Eminent Domain.

 
If, at the time of Closing, any material part of a Property is (or previously
has been) acquired, or is about to be acquired (including any acquisition that
materially limits access to such Property), by any governmental agency by the
powers of eminent domain or transfer in lieu thereof (or in the event that at
such time there is any notice of any such acquisition or intent to acquire by
any such governmental agency), Purchaser shall have the right, at Purchaser’s
option, to give a Termination Notice to Sellers’ Representative for the Property
for which there was such a condemnation.  If Sellers’ Representative
receives a Termination Notice pursuant to this Section
12.1, then the provisions of Section 13.33 shall apply to the
Property with respect to which this Contract has been so terminated.

ARTICLE XIII
MISCELLANEOUS

13.1    
Binding Effect of Contract.

 
This Contract shall not be binding on any party until executed by both Purchaser
and all Sellers.  Neither the Escrow Agent’s nor the Broker’s execution of
this Contract shall be a prerequisite to its effectiveness.  Subject to
Section 13.3, this Contract shall be binding upon and inure to the
benefit of Sellers and Purchaser, and their respective successors, and permitted
assigns.

13.2    
Exhibits and Schedules.

 
All Exhibits and Schedules, whether or not annexed hereto, are a part of this
Contract for all purposes.

13.3     Assignability.

 
Except to the extent required to comply with the provisions of
Section 13.18 related to a 1031 Exchange, this Contract is not
assignable by Purchaser without first obtaining the prior written approval of
Sellers’ Representative.  Notwithstanding the foregoing, Purchaser may
assign this Contract to one or more entities so long as (a) Purchaser is an
affiliate of the purchasing entity(ies), (b) Purchaser is not released from its
liability hereunder, and (c) Purchaser provides written notice to Sellers’
Representative of any proposed assignment no later than five (5) days prior to
the Closing Date.  As used herein, an affiliate is a person or entity
controlled by, under common control with, or controlling another person or
entity.

13.4    
Captions.

 
The captions, headings, and arrangements used in this Contract are for
convenience only and do not in any way affect, limit, amplify, or modify the
terms and provisions hereof.

13.5     Number
and Gender of Words.

 
Whenever herein the singular number is used, the same shall include the plural
where appropriate, and words of any gender shall include each other gender where
appropriate.

13.6    
Notices.

 
All notices, demands, requests and other communications required or permitted
hereunder shall be in writing, and shall be (a) personally delivered with a
written receipt of delivery; (b) sent by a nationally recognized overnight
delivery service requiring a written acknowledgement of receipt or providing a
certification of delivery or attempted delivery; (c) sent by certified or
registered mail, return receipt requested; or (d) sent by confirmed facsimile
transmission or electronic delivery with an original copy thereof transmitted to
the recipient by one of the means described in subsections (a) through (c) no
later than three (3) Business Days thereafter.  All notices shall be deemed
effective when actually delivered as documented in a delivery receipt; provided,
however, that if the notice was sent by overnight courier or mail as aforesaid
and is affirmatively refused or cannot be delivered during customary business
hours by reason of the absence of a signatory to acknowledge receipt, or by
reason of a change of address with respect to which the addressor did not have
either knowledge or written notice delivered in accordance with this paragraph,
then the first attempted delivery shall be deemed to constitute delivery. 
Each party shall be entitled to change its address for notices from time to time
by delivering to the other party notice thereof in the manner herein provided
for the delivery of notices.  All notices shall be
sent to the addressee at its address set forth following its name below:

To
Purchaser:

Standard
Portfolios LLC

c/o
Grant, Genovese & Baratta, LLP

2030
Main Street, Suite 1600

Irvine,
California 92614 

Attention:
Michael J. Genovese

Telephone:  949-660-1600
Facsimile:  949-660-6051

Email: 
mjg@ggb-law.com

With
a copy to

Grant,
Genovese & Baratta, LLP

2030
Main Street, Suite 1600

Irvine,
California 92614 

Attention:
Michael J. Genovese

Telephone:  949-660-1600
Facsimile:  949-660-6051

Email:  mig@ggb-law.com 

 

To any Seller or Sellers’ Representative:

c/o AIMCO
4582
South Ulster Street Parkway 
Suite 1100
Denver, Colorado 
80237
Attention:  Mark Reoch and Brian Bornhorst
Telephone: 
303-757-8101 (Mark Reoch) and 303-691-4472 (Brian Bornhorst)
Facsimile: 
303-300-3261 (Mark Reoch and Brian Bornhorst)

Email: 
mark.reoch@aimco.com and brian.bornhorst@aimco.com

And:

c/o AIMCO
4582 South Ulster Street Parkway
Suite
1100
Denver, Colorado  80237
Attention:  Mr. Harry
Alcock
Telephone:  303-691-4344
Facsimile:  303-300-3282

Email: 
harry.alcock@aimco.com

with copy to:

AIMCO
4582 South Ulster
Street Parkway
Suite 1100
Denver, Colorado  80237
Attention: 
John Spiegleman, Esq.
Telephone: 303-691-4303
Facsimile: 
720-200-6882

Email: 
john.spiegleman@aimco.com

and
a copy to:

Bryan Cave LLP
1290 Avenue of the Americas
New York, New
York 10104
Attention:  Sandor A. Green, Esq.
Telephone:
212-541-2049
Facsimile:  212-541-1449

Email: 
sagreen@bryancave.com

Any
notice required hereunder to be delivered to the Escrow Agent shall be delivered
in accordance with above provisions as follows:

Stewart
Title Guaranty Company

1980
Post Oak Boulevard

Suite
610

Houston,
Texas 77056

Attention: 
Wendy Howell

Telephone: 
800-729-1906

Facsimile:  
713-552-1703

Email: 
WHOWELL@stewart.com

 

Unless
specifically required to be delivered to the Escrow Agent pursuant to the terms
of this Contract, no notice hereunder must be delivered to the Escrow Agent in
order to be effective so long as it is delivered to the other party in
accordance with the above provisions.

13.7    
Governing Law and Venue.

 
The laws of the State of Colorado shall govern the validity, construction,
enforcement, and interpretation of this Contract, unless otherwise specified
herein except for the conflict of laws provisions thereof.  Subject to
Section 13.24, all claims, disputes and other matters in question
arising out of or relating to this Contract, or the breach thereof, shall be
decided by proceedings instituted and litigated in a court of competent
jurisdiction in the State of Colorado is situated, and the parties hereto
expressly consent to the venue and jurisdiction of such court.

13.8     Entire Agreement.

 
This Contract embodies the entire Contract between the parties hereto concerning
the subject matter hereof and supersedes all prior conversations, proposals,
negotiations, understandings and agreements, whether written or oral.

13.9    
Amendments.

 
This Contract shall not be amended, altered, changed, modified, supplemented or
rescinded in any manner except by a written contract executed by all of the
parties; provided, however, that, (a) the signature of the Escrow Agent shall
not be required as to any amendment of this Contract other than an amendment of
Section 2.3, and (b) the signature of the Broker shall not be
required as to any amendment of this Contract.

13.10  
Severability.

 
If any part of this Contract 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 Contract and the remaining portions of
this Contract shall be valid and enforceable.

13.11   Multiple
Counterparts/Facsimile Signatures.

 
This Contract may be executed in a number of identical counterparts.  This
Contract may be executed by facsimile signatures or electronic delivery of
signatures which shall be binding on the parties hereto, with original
signatures to be delivered as soon as reasonably practical thereafter.

13.12  
Construction.

 
No provision of this Contract shall be construed in favor of, or against, any
particular party by reason of any presumption with respect to the drafting of
this Contract; both parties, being represented by counsel, having fully
participated in the negotiation of this instrument.

13.13  
Confidentiality.

 
Purchaser shall not disclose the terms and conditions contained in this Contract
and shall keep the same confidential, provided that Purchaser may disclose the
terms and conditions of this Contract (a) as required by law, (b) to consummate
the terms of this Contract, or any financing relating thereto, or (c) to
Purchaser’s or Sellers’ lenders, attorneys and accountants.  Any
information obtained by Purchaser in the course of its inspection of the
Properties, and any Materials provided by Sellers to Purchaser hereunder, shall
be confidential and Purchaser shall be prohibited from making such information
public to any other person or entity other than its Consultants, without the
prior written authorization of Sellers’ Representative, which may be granted or
denied in the sole discretion of Sellers’ Representative.  In addition,
Purchaser shall use its reasonable efforts to prevent its Consultants from
divulging any such confidential information to any unrelated third parties
except as reasonably necessary to third parties engaged by Purchaser for the
limited purpose of analyzing and investigating such information for the purpose
of consummating the transaction contemplated by this Contract.  Unless and
until the Closing occurs, Purchaser shall not market any of the Properties (or
any portion thereof) to any prospective purchaser or lessee without the prior
written consent of Sellers’ Representative, which consent may be withheld in
Sellers’ Representative’s sole discretion.  Notwithstanding the provisions
of Section 13.8, Purchaser agrees that the covenants, restrictions
and agreements of Purchaser contained in any confidentiality agreement executed
by Purchaser prior to the Effective Date shall survive the execution of this
Contract and shall not be superseded hereby.

13.14   Time of the Essence.

 
It is expressly agreed by the parties hereto that time is of the essence with
respect to this Contract and any aspect thereof.

13.15   Waiver.

 
No delay or omission to exercise any right or power accruing upon any default,
omission, or failure of performance hereunder shall impair any right or power or
shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient.  No
waiver, amendment, release, or modification of this Contract shall be
established by conduct, custom, or course of dealing and all waivers must be in
writing and signed by the waiving party.

13.16   Attorneys’
Fees.

 
In the event either party hereto commences litigation or arbitration against the
other to enforce its rights hereunder, the prevailing party in such litigation
shall be entitled to recover from the other party its reasonable attorneys’ fees
and expenses incidental to such litigation and arbitration, including the cost
of in-house counsel and any appeals.

13.17   Time Zone/Time
Periods.

 
Any reference in this Contract to a specific time shall refer to the time in the
time zone where the Escrow Agent is located.  (For example, a reference to
3:00 p.m. refers to 3:00 p.m. MST if the Escrow Agent is located in Denver,
CO.)  Should the last day of a time period fall on a weekend or legal
holiday, the next Business Day thereafter shall be considered the end of the
time period.

13.18   1031 Exchange.

 
Sellers and Purchaser acknowledge and agree that the purchase and sale of each
Property may be part of a tax-free exchange for either Purchaser or a Seller
pursuant to Section 1031 of the Code, the regulations promulgated
thereunder, revenue procedures, pronouncements and other guidance issued by the
Internal Revenue Service.  Each party hereby agrees to cooperate with each
other and take all reasonable steps on or before the Closing Date to facilitate
such exchange if requested by the other party, provided that (a) no party making
such accommodation shall be required to acquire any substitute property, (b)
such exchange shall not affect the representations, warranties, liabilities and
obligations of the parties to each other under this Contract, (c) no party
making such accommodation shall incur any additional cost, expense or liability
in connection with such exchange (other than expenses of reviewing and executing
documents required in connection with such exchange), and (d) no dates in this
Contract will be extended as a result thereof, except as specifically provided
herein.  Notwithstanding anything in this Section 13.18 to the
contrary, any Seller shall have the right to extend the Closing Date (as
previously extended pursuant to Section 5.1) for up to thirty (30)
days in order to facilitate a tax-free exchange pursuant to this
Section 13.18, and to obtain all documentation in connection
therewith.

13.19   No Personal
Liability of Officers, Trustees or Directors of Seller’s Partners.

 
Purchaser agrees that none of any Seller’s Indemnified Parties shall have any
personal liability under this Contract or any document executed in connection
with the transactions contemplated by this Contract.

13.20   No Exclusive Negotiations.

 
Sellers shall have the right, at all times prior to the expiration of the
Feasibility Period, to solicit backup offers and enter into discussions,
negotiations, or any other communications concerning or related to the sale of
any Property with any third-party; provided, however, that
such communications are subject to the terms of this Contract, and that Sellers
shall not enter into any binding contract with a third-party for the sale of any
Property unless such contract is contingent on the termination of this Contract
without the Property having been conveyed to Purchaser.

13.21   ADA Disclosure.

 
Purchaser acknowledges that the Properties 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 a property accessible to disabled persons and provide auxiliary aids and
services for hearing, vision or speech impaired persons.  Sellers make no
warranty, representation or guarantee of any type or kind with respect to any
Property’s compliance with the ADA or the FHA (or any similar state or local
law), and Sellers expressly disclaim any such representations.

13.22   No
Recording.

 
Purchaser shall not cause or allow this Contract or any contract or other
document related hereto, nor any memorandum or other evidence hereof, to be
recorded or become a public record without the prior written consent of Sellers’
Representative, which consent may be withheld in the sole discretion of Sellers’
Representative.  If Purchaser records this Contract or any other memorandum
or evidence thereof, Purchaser shall be in default of its obligations under this
Contract.  Purchaser hereby appoints Sellers’ Representative as Purchaser’s
attorney-in-fact to prepare and record any documents necessary to effect the
nullification and release of the contract or other memorandum or evidence
thereof from the public records.  This appointment shall be coupled with an
interest and irrevocable.

13.23   Relationship of
Parties.

 
Purchaser and Sellers acknowledge and agree that the relationship established
between the parties pursuant to this Contract is only that of a seller and a
purchaser of property.  Neither Purchaser nor Sellers is, nor shall either
hold itself out to be, the agent, employee, joint venturer or partner of the
other party.

13.24   Dispute Resolution.

 
Any controversy, dispute, or claim of any nature arising out of, in connection
with, or in relation to the interpretation, performance, enforcement or breach
of this Contract (and any closing document executed in connection herewith),
including any claim based on contract, tort or statute, shall be resolved at the
written request of any party to this Contract by binding arbitration.  The
arbitration shall be administered in accordance with the then current Commercial
Arbitration Rules of the American Arbitration Association.  Any matter to
be settled by arbitration shall be submitted to the American Arbitration
Association in the State of California, applying the laws of the State of
Colorado.  The parties shall attempt to designate one arbitrator from the
American Arbitration Association.  If they are unable to do so within
thirty (30) days after written demand therefor, then the American Arbitration
Association shall designate an arbitrator who shall be a retired judge or
attorney experienced in commercial transactions and who shall have at least
twenty (20) years of experience in commercial or real estate transactions. 
The arbitration shall be final and binding, and enforceable in any court of
competent jurisdiction.  The arbitrator shall award attorneys’ fees
(including those of in-house counsel) and costs to the prevailing party and
charge the cost of arbitration to the party which is not the prevailing
party.  Notwithstanding anything herein to the contrary, this
Section 13.24 shall not prevent Purchaser or Sellers from seeking
and obtaining equitable relief on a temporary or permanent basis, including,
without limitation, a temporary restraining order, a preliminary or permanent injunction or similar equitable relief, from a
court of competent jurisdiction located in the State of Colorado (to which all
parties hereto consent to venue and jurisdiction) by instituting a legal action
or other court proceeding in order to protect or enforce the rights of such
party under this Contract or to prevent irreparable harm and injury.  The
court’s jurisdiction over any such equitable matter, however, shall be expressly
limited only to the temporary, preliminary, or permanent equitable relief
sought; all other claims initiated under this Contract between the parties
hereto shall be determined through final and binding arbitration in accordance
with this Section 13.24.

13.25   AIMCO
Marks.

 
Purchaser agrees that Sellers, the Property Manager or AIMCO, or their
respective affiliates, are the sole owners of all right, title and interest in
and to the AIMCO Marks (or have the right to use such AIMCO Marks pursuant to
license agreements with third parties) and that no right, title or interest in
or to the AIMCO Marks is granted, transferred, assigned or conveyed as a result
of this Contract.  Purchaser further agrees that Purchaser will not use the
AIMCO Marks for any purpose.

13.26   Non-Solicitation
of Employees.

 
Prior to the expiration of the Feasibility Period, Purchaser acknowledges and
agrees that, without the express written consent of Sellers’ Representative,
neither Purchaser nor any of Purchaser’s employees, affiliates or agents shall
solicit any of Seller’s employees or any employees located at any Property (or
any of any Seller’s affiliates’ employees located at any property owned by such
affiliates) for potential employment.

13.27   Survival.

 
Except for (a) all of the provisions of this Article XIII (other than
Section 13.18 and 13.20), and (b) Sections
2.3, 3.3, 3.4, 3.5, 4.6.5,
4.8.4, 4.10, 4.11, 5.4, 5.5 , 6.2,
6.5, 9.1, 11.4, 14.1, and 14.2; (c) any other provisions in this Contract, that by their
express terms survive the termination or Closing, and (d) any payment obligation
of Purchaser under this Contract (the foregoing (a), (b), (c) and (d) referred
to herein as the “Survival Provisions”), none of the terms and provisions
of this Contract shall survive the termination of this Contract, and, if the
Contract is not so terminated, all of the terms and provisions of this Contract
(other than the Survival Provisions, which shall survive the Closing) shall be
merged into the Closing documents and shall not survive Closing.

13.28   Multiple
Purchasers.

 
As used in this Contract, the term “Purchaser” means all entities
acquiring any interest in any Properties at the Closing, including, without
limitation, any assignee(s) of the original Purchaser pursuant to
Section 13.3 of this Contract.  In the event that “Purchaser”
has any obligations or makes any covenants, representations or warranties under
this Contract, the same shall be made jointly and severally by all entities
being a Purchaser hereunder.

13.29   Sellers’ Several
Obligations.

 
Purchaser agrees that, notwithstanding any other provision of this Contract to
the contrary, the representations, warranties, obligations, and covenants of
each Seller are individual and several, and not joint and several, and that each
Seller is responsible and liable only for its own Property and its own
representations, warranties, obligations, and covenants.  Purchaser agrees
that it shall look solely to the applicable Seller for any amount due hereunder
or, obligation owed hereunder, and further waives any and all claims against any
other party or Property for payment or performance of the same, including,
without limitation, any other Seller or AIMCO, or any
partner, member, manager, shareholder, director, officer, employee, affiliate,
representative or agent of any Seller or AIMCO.

13.30   Obligation to
Close on all Properties.

 
Except as expressly set forth in this Contract, Purchaser’s obligation to
purchase the Properties is not severable and Purchaser must purchase all of the
Properties.  Similarly, except as expressly set forth in this Contract,
Sellers’ obligations to sell the Properties are not severable and Sellers must
sell all of the Properties to Purchaser.

13.31   Texas Statutory Utility District Notice for
the Woods of Inverness Property.

 The
terms of this Section 13.31 apply only to the Woods of Inverness
Property.  

13.31.1 
The Woods of Inverness Property is located in the Inverness Forest Improvement
District. The district has taxing authority separate from any other taxing
authority and may, subject to voter approval, issue an unlimited amount of bonds
and levy an unlimited rate of tax in payment of such bonds. As of this date, the
rate of taxes levied by the district on real property located in the district is
$0.45 on each $100 of assessed valuation. The total amount of bonds, excluding
refunding bonds and any bonds or any portion of bonds issued that are payable
solely from revenues received or expected to be received under a contract with a
governmental entity, approved by the voters and which have been or may, at this
date, be issued is $9,660,000, and the aggregate initial principal amounts of
all bonds issued for one or more of the specified facilities of the district and
payable in whole or in part from property taxes is $3,300,000.

 13.31.2
The district has the authority to adopt and impose a standby fee on property in
the district that has water, sanitary sewer, or drainage facilities and services
available but not connected and which does not have a house, building, or other
improvement located thereon and does not substantially utilize the utility
capacity available to the property. The district may exercise the authority
without holding an election on the matter. As of this date, the most recent
amount of the standby fee is $0. An unpaid standby fee is a personal obligation
of the person that owned the property at the time of imposition and is secured
by a lien on the property. Any person may request a certificate from the
district stating the amount, if any, of unpaid standby fees on a tract of
property in the district.

13.31.3 
The district is located in whole or in part within the corporate boundaries of
the city of Houston. The taxpayers of the district are subject to the taxes
imposed by the municipality and by the district until the district is dissolved.
By law, a district located within the corporate boundaries of a municipality may
be dissolved by municipal ordinance without the consent of the district or the
voters of the district.  The purpose of this district is to provide water,
sewer, drainage, or flood control facilities and services within the district
through the issuance of bonds payable in whole or in part from property taxes.
The cost of these utility facilities is not included in the purchase price of
your property, and these utility facilities are owned or to be owned by the
district.

13.31.4  PURCHASER IS ADVISED THAT THE INFORMATION
PROVIDED IN THIS SECTION 13.31 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY
TIME.  THE DISTRICT ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF
SEPTEMBER THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE TAX
RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO CONTACT THE DISTRICT
TO DETERMINE THE STATUS OF ANY CURRENT OR PROPOSED CHANGES TO THE INFORMATION
SHOWN ON THIS FORM.

13.31.5 
By executing this Contract, Purchaser acknowledges receipt of the foregoing
notice provided in this Section 13.31 as of the Effective Date, as required by
Section 49.452 of the Texas Water Code.

13.32   Maryland Critical
Area Notice.

 The
terms of this Section 13.32 apply only to the Spyglass Property. 
Purchaser is hereby advised that all or a portion of the Spyglass Property may
be located in the “critical area” of the Chesapeake and Atlantic Coastal Bays,
and that additional zoning, land use, and resource protection regulations apply
in this area. The “critical area” generally consists of all land and water areas
within 1,000 feet beyond the landward boundaries of State or private wetlands,
the Chesapeake Bay, the Atlantic Coastal Bays, and all of their tidal
tributaries. The “critical area” also includes the waters of and lands under the
Chesapeake Bay, the Atlantic Coastal Bays, and all of their tidal tributaries to
the head of tide. For information as to whether the Spyglass Property is located
within the critical area, Purchaser may contact the local department of planning
and zoning, which maintains maps showing the extent of the critical area in the
jurisdiction. Allegany, Carroll, Frederick, Garrett, Howard, Montgomery, and
Washington counties do not include land located in the critical area.  

13.33   Effect of Partial
Termination of Contract.

 
If this Contract is terminated in part by a Seller or Purchaser with respect to
any one or more (but not all) of the Properties (each a “Terminated
Property”) pursuant to any one or more of the provisions of Section
4.4, Section 4.6.9, Section 4.7, Section 4.8.5,
Section 4.11.10, Section 8.1, Section 8.2, Section
10.2, Section 11.1 and/or Section 12.1 hereof, and provided
that Purchaser is not otherwise in material default hereunder beyond any
applicable notice and cure period, then this Contract shall automatically be
deemed modified to (i) remove each Terminated Property as a “Property” hereunder
and (ii) remove each Seller of each Terminated Property as a “Seller” hereunder,
such that such Seller shall no longer constitute a party to this Contract, and,
accordingly, such Seller and Purchaser shall no longer have any further rights
or obligations hereunder to each other, except for the Survival
Provisions.  In such event, but subject to the terms of Section
2.3.3 hereof, Escrow Agent shall release to Purchaser the Allocated Deposit
Amount for each Terminated Property, and the Deposit shall be deemed to be
reduced by the amount of the Allocated Deposit Amount for each Terminated
Property.  Except as otherwise provided below, if Purchaser or any Seller
terminates this Contract in part and the aggregate Purchase Price for all
such Terminated Properties exceeds twenty-five percent (25%) of the total
Purchase Price for all of the Properties (the “Threshold Amount”),
then either Sellers or Purchaser shall have the right to terminate this Contract
in its entirety by written notice to the other party within five (5) Business
Days of receipt of the applicable notice terminating this Contract for such
Terminated Property.  In such event, but subject to the terms of Section
2.3.3 hereof, Escrow Agent shall release the Deposit to Purchaser (less the Allocated Deposit Amount applicable to
the Property for which a Closing has already occurred, if any) and this Contract
shall be null and void, except for the Survival Provisions. 
Notwithstanding the foregoing, if this Contract is terminated with respect to
the Chimneys of Cradlerock Property pursuant to Sections 4.11.11 then the
Purchase Price for the Chimneys of Cradlerock Property shall not apply towards
the determination of the Threshold Amount. 

ARTICLE XIV
LEAD–BASED
PAINT DISCLOSURE

14.1     Disclosure.

 
Sellers and Purchaser hereby acknowledge delivery of the Lead Based Paint
Disclosure attached as Exhibit H hereto.

14.2    
Consent Agreement.

 
With respect to the Arbours of Hermitage Property and the
Parktown Townhouse Property, testing has been performed at such applicable
property with respect to presence of lead-based paint.  The remainder of
the Properties were built after 1978 and thus do not contain lead based paint.
The “LBP Consultant” identified on the Seller Information Schedule prepared the
Report with respect to the Property identified therein.  A copy of each
Report with respect to the Property will be provided to Purchaser with the
Materials.  Each Report certifies the respective Property as lead based
paint free.  By execution hereof, Purchaser acknowledges receipt of a copy
of the Reports, the Lead-Based Paint Disclosure Statement attached hereto as
Exhibit H, and acknowledges receipt of the Consent Agreement. 
Because the applicable Property has been certified as lead based paint free, the
applicable Seller is not required under the Consent Agreement to remediate or
abate any lead-based paint condition at its Property prior to the Closing. 
Purchaser acknowledges and agrees that (1) after Closing, Purchaser and the
applicable Property shall be subject to the Consent Agreement and the provisions
contained herein related thereto and (2) Purchaser shall not be deemed to be a
third party beneficiary to the Consent Agreement.

[Remainder
of Page Intentionally Left Blank]

NOW, THEREFORE, the parties hereto have executed this
Contract under seal as of the date first set forth above.

Seller:

CCP
IV ARBOURS OF HERMITAGE, LLC, a Delaware limited liability company

 

By:
CCP IV ASSOCIATES, LTD., a Texas limited partnership, its member

 

By:
CCP/IV RESIDENTIAL GP, L.L.C., a South Carolina limited liability company, its
general partner

 

By:
CONSOLIDATED CAPITAL PROPERTIES IV, LP, a Delaware limited partnership, its
manager

 

By:
CONCAP EQUITIES, INC., a Delaware corporation, its general partner

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

OXFORD-COLUMBIA
ASSOCIATES, A MARYLAND LIMITED PARTNERSHIP, a Maryland limited
partnership

By:
OAMCO XVI, L.L.C., a Delaware limited liability company, its managing general
partner

 

By:
OXFORD REALTY FINANCIAL GROUP, INC., a Maryland corporation, its managing
member

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

 

AIMCO
HILLMEADE, LLC, a Delaware limited liability company

 

By:
AIMCO PROPERTIES, L.P., a Delaware limited partnership, its member

 

By:
AIMCO-GP, INC., a Delaware corporation, its general partner

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

BRANDERMILL-OXFORD
ASSOCIATES LIMITED PARTNERSHIP, a Maryland limited partnership

 

By: 
OXFORD EQUITIES CORPORATION, an Indiana corporation, its managing general
partner

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

LAZY
HOLLOW PARTNERS, a California general partnership

 

By:
ANGELES REALTY CORPORATION II, a California corporation, its managing general
partner

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

SHELTER
PROPERTIES II LIMITED PARTNERSHIP, a South Carolina limited partnership

 

By:
SHELTER REALTY II CORPORATION, a South Carolina corporation, its general
partner

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

AMBASSADOR
VII, L.P., a Delaware limited partnership

 

By:
AMBASSADOR VII, INC., a Delaware corporation, its general partner

 

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

WOODS
OF INVERNESS CPF 16, L.P., a Delaware limited partnership

 

By:
CPF 16 WOODS OF INVERNESS GP, L.L.C., a South Carolina limited liability
company, its general partner

 

By:
CENTURY PROPERTIES FUND XVI, a California limited partnership, its member

 

By:
FOX CAPITAL MANAGEMENT CORPORATION, a California corporation, its managing
general partner

 

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

ST.
MARY’S-OXFORD ASSOCIATES LIMITED PARTNERSHIP, a Maryland limited
partnership

 

By:
   OAMCO VII, L.L.C., a Delaware limited liability company, its
managing general partner

 

By: 
OXFORD REALTY FINANCIAL GROUP, INC., a Maryland corporation, its managing
member

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

Purchaser:

Standard Portfolios LLC, a Delaware limited liability company

 

 

By: 
/s/David Liu

Name: 
David Liu

Title: 
Manager

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