Document:

ex_10-1.htm

    
      

      

    

    EXHIBIT
10.1

     

     

    
      
        SUPPLEMENTAL
AGREEMENT

         

        THIS
SUPPLEMENTAL AGREEMENT (this “Agreement” or the “Supplemental Agreement”) is
dated October 6, 2009 (the “Effective Date”) by and between Autocar, LLC, a
Delaware limited liability company (“Autocar”) and Balqon Corporation, a
California corporation (“Balqon”).

         

        R E C I T
A L S

         

        WHEREAS,
Autocar manufactures, assembles and sells chassis for low-cab-over-engine
heavy-duty vehicles (the “Chassis”);

         

        WHEREAS,
Balqon designs, develops and distributes heavy-duty electric and hybrid drive
systems for industrial and commercial applications;

         

        WHEREAS,
Balqon will install zero-emission heavy-duty electric drive systems and
batteries (the “Drive System”) into the Chassis for heavy-duty class 7 and
class 8 electric trucks (the “Trucks”);

         

        WHEREAS,
Autocar and Balqon will market and promote the sale of the Trucks, which will
then be ordered and purchased by Balqon or end-users through an authorized
Autocar dealer (the “Dealer”); and

         

        WHEREAS,
certain aspects of the relationship of the parties and the design, assembly,
marketing and sale of the Trucks are governed by that certain Converter
Agreement dated June 9, 2009 entered into by the parties (the “Converter
Agreement”); and

         

        WHEREAS,
the parties desire to supplement certain aspects of the relationship
contemplated by the Converter Agreement by agreeing to the supplemental matters
hereinafter set forth.

         

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

         

        
          	
                  1.

                	
                  PURCHASE
      AND SALE OF THE TRUCKS

                

        

         

        
          	
                   
      

                	
                  1.1.

                	
                  Sales
      Leads.  Autocar and Balqon and their respective sales
      outlets will develop and appropriately direct sales leads among the
      companies and such sales outlets.  The parties will use their
      best efforts to combine and coordinate sales facilities and to train each
      others’ sales forces in the operation and sale or lease of the other
      party’s products, thereby expanding both parties’ sales
      networks.

                

        

         

        
          	
                   
      

                	
                  1.2.

                	
                  Funding.  Autocar
      and Balqon will work together in good faith and use commercially
      reasonable efforts to identify and pursue all government tax incentives,
      public and private grants and initiatives and other sources of funding
      available for the research, development and sale of the
      Trucks.

                

        

         

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

         

        
          	
                   
      

                	
                  1.3.

                	
                  Orders for the
      Trucks.  All orders for the Trucks (the “Orders”) will be
      placed through a Dealer.  Autocar and Balqon will work together
      in good faith to assist the Dealer with placing the Orders on behalf of
      Balqon.  All Orders will be subject to the Dealer’s standard
      terms and conditions. The specifications for the Chassis (including
      excluded items) will be as determined by both Autocar and
      Balqon.

                

        

         

        
          	
                   
      

                	
                  1.4.

                	
                  Pricing of the
      Chassis.  Prices and destination charges applicable to
      Balqon’s purchase of Chassis during the first contract year shall be at
      prices negotiated by Autocar and Balqon.  For each contract year
      thereafter, the price may be adjusted to reflect Autocar’s standard model
      year pricing, provided that the price for Chassis may be increased or
      decreased (i) to reflect increases in Autocar’s cost of materials as
      indicated by Autocar’s standard Temporary Inflation Adjustment (TIA),
      copies of which will be made available upon request, or (ii) based upon
      changes (additions or deletions) to the Chassis specification requested by
      Balqon.

                

        

         

        
          
            	
                     
      

                  	
                    1.5.

                  	
                    Installation
      of the Drive System.  Autocar will ship the Chassis to
      Balqon for installation of the Drive
  Systems.

                  
	 	 	 
	 	 	
                    1.5.1.         Receipt
      and Inspection of the Chassis.  Upon receipt of the
      Chassis, Balqon will inspect the Chassis for damage or shortage and will
      take custody of and execute a proper carrier’s receipt for the
      Chassis.  Damage sustained in transit will be repaired, at
      Autocar’s discretion and authorization, either (a) by Balqon at
      Balqon’s expense, (b) by Autocar’s on-site technician(s) at Autocar’s
      cost, or (c) by the Dealer in accordance with the Autocar Service
      Policies and Procedures then in effect for the Dealer and Autocar (the
      “Dealer P&P”).  The parties will provide reasonable
      assistance to each other in connection with claims against the carrier to
      recover costs to repair and other
      damages.

                  
	 	 	 
	 	 	
                    1.5.2.         Installation.  Balqon
      will install the Drive System in the Chassis upon receipt of the Chassis,
      in accordance with any specific written instructions provided by Autocar
      for the installation (the “Installation
      Instructions”).

                  
	 	 	 

          

        

        
          
          

        

        
          	
                   
      

                	
                  1.6.

                	
                  Assumption of Warranty
      Obligations. If Balqon alters the Chassis in any way (a) not in
      accordance with the Installation Instructions, or (b) not otherwise
      authorized in writing by Autocar, including but not limited to cutting,
      welding, stretching, disconnecting, shrinking or otherwise altering the
      Chassis’ wheelbase, suspension, frame rails, driveline, axle or electrical
      system, then Autocar’s warranty will no longer cover any portion of the
      Chassis that has been so altered, and Balqon assumes warranty coverage of
      any such portion of the Chassis that has been so
      altered.  Balqon will be responsible for the cost of any repairs
      that may be required on the altered portion of the Chassis or on any
      portion of the Chassis affected by the alterations, which repairs would
      otherwise have been covered by Autocar’s warranty, and will reimburse
      Autocar for any costs incurred or warranty claims paid for such
      repairs.

                

        

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        
          	
                   
      

                	
                  1.7.

                	
                  Certification and
      Pre-Delivery Inspection.  Completion by Autocar or the
      Dealer of the Federal Motor Vehicle Safety Standards Certification of the
      completed Truck (the “Certification”) or the final inspection of the Truck
      upon completion of the installation of the Drive System (the “Pre-Delivery
      Inspection”) will not be construed as a waiver by Autocar, nor will it
      limit Autocar’s right to assert any contractual, legal or equitable
      remedy, or relieve Balqon of its warranty or other responsibilities under
      this Agreement.  Balqon will promptly perform any adjustments,
      repairs or replacements necessary to remedy any problems with the Drive
      Systems or their installation which are discovered during the
      Certification or the Pre-Delivery
Inspection.

                

        

         

        
          	
                   
      

                	
                  1.8.

                	
                  Delivery of the
      Truck.  After completion of the Certification, the
      Pre-Delivery Inspection and any necessary repairs and re-inspection,
      Balqon will tender the Truck, along with the information needed to prepare
      the documentation to transfer title to the Truck to the end­-user on
      the scheduled date (the “Delivery”).  Balqon will ensure that
      all product information intended for the end-user is contained in the
      Truck prior to the shipment.

                

        

         

        
          	
                   
      

                	
                  1.9.

                	
                  Sale of the Trucks and
      Lease of the Drive System to End-Users.  Balqon will sell
      the Trucks to the end-users and register and prepare the paperwork for the
      Trucks as required by law and as appropriate for the
      end-user.  Autocar, Balqon and the Dealer will negotiate a
      reasonable fee for the Dealer’s services with regard to the sale of the
      Trucks.

                

        

         

        
          	
                  2.

                	
                  QUALITY,
      SERVICE , WARRANTY AND SERVICE
PARTS

                

        

         

        
          	
                   
      

                	
                  2.1.

                	
                  Quality.  Autocar’s
      reputation may be affected by the quality, performance, reliability and
      durability of the Drive Systems and Balqon’s conduct in the
      marketplace.  If Autocar reasonably determines that during
      the term of this Agreement the Drive Systems or the Trucks in the field
      demonstrate such poor quality, performance, reliability or durability that
      Autocar’s reputation is or may be harmed, then Autocar shall provide
      Balqon with written notice of the quality, performance, reliability and/or
      durability issue and shall cooperate and provide reasonable assistance to
      Balqon in connection with Balqon’s efforts to take corrective action to
      resolve the issue and Autocar may suspend delivery of additional Chassis
      to Balqon during such period.  In the event such breach, failure
      or condition continues unremedied for 60 days after notice to Balqon
      describing such breach, failure or condition in reasonable detail, Autocar
      may terminate this Agreement and the Converter Agreement; provided, however, that
      if such breach, failure or condition is not capable of being cured within
      said 60-day period, than Balqon shall have such additional time as may be
      necessary to cure such breach, failure or condition, if, within such
      60-day period, Balqon has commenced and is diligently pursuing the
      remedies necessary to cure such breach, failure or condition, in which
      event neither this Agreement nor the Converter Agreement shall be
      terminated while such remedies are being diligently
    pursued.

                

        

         

        
          	
                   
      

                	
                  2.2.

                	
                  Service of the
      Trucks.  The Chassis portion of the Trucks will be
      serviced by Autocar’s network of service facilities in accordance with the
      Dealer P&P.  The Drive Systems will be serviced by Balqon
      and its dealer service facilities in accordance with Balqon’s policies and
      procedures.  The parties will use their best efforts to combine
      and coordinate service facilities and to train, certify or place
      technicians at each others’ service facilities in the maintenance and
      repair of the other party’s products, thereby expanding both parties’
      service networks.

                

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        
          	
                   
      

                	
                  2.3.

                	
                  Warranty of the
      Chassis.  The Chassis will be covered by Autocar’s
      standard Limited Warranty (which will exclude coverage of the Drive
      Systems) and applicable pass-through warranties.  Warranty
      claims regarding the Chassis submitted by Autocar’s service facilities and
      authorized Balqon service facilities, if any, will be processed and paid
      in accordance with the
Dealer P&P.

                

        

         

        
          	
                   
      

                	
                  2.4.

                	
                  Service
      Parts.  Service Parts for the Chassis portion of the
      Trucks will be provided by Autocar or Autocar’s network of service
      facilities in accordance with the Dealer P&P.  Service Parts
      for the Drive Systems will be provided by Balqon and its service
      facilities.

                

        

         

        
          	
                   
      

                	
                  2.5.

                	
                  Recalls and Service
      Programs.  If for any reason the Drive Systems are
      recalled (whether voluntarily or involuntarily) or Autocar takes any
      action with regard to the Drive Systems which, in its reasonable
      discretion, is necessary or advisable to prevent or mitigate any risk to
      human health, property damage or damage to the business or reputation of
      Autocar, and such recall or other action relates to the Drive Systems or
      results from, in whole or in part, Balqon’s performance of (or failure to
      properly perform) its duties and obligations under this Agreement, Balqon
      will bear and reimburse Autocar for all costs and expenses relating to
      such action, including but not limited to the costs and expenses of
      notifying customers, customer refunds, cost of returning parts, handling
      expenses and costs of replacement (regardless of where procured) and
      reasonable attorneys’ fees and costs; provided, however, that
      in no event shall Balqon be responsible for any incidental or
      consequential damages incurred by Autocar.  Balqon will
      collaborate with Autocar in the writing and production of required
      training materials, technical service bulletins and recall and other
      notices relating to the Drive
Systems.

                

        

        
           

          
            	
                    3.

                  	
                    TERM
      AND TERMINATION

                  

          

           

          
            	
                     
      

                  	
                    3.1.

                  	
                    Term and
      Renewal.  Except as otherwise provided herein, the term
      of this Agreement shall be co-terminus with the Converter Agreement and
      Section 4.1 of the Converter Agreement is incorporated herein in its
      entirety.

                  

          

           

          
            	
                     
      

                  	
                    3.2.

                  	
                    Breach with Right to
      Cure.  During the term of this Agreement (and any renewal
      thereof) if either party breaches or fails to perform its obligations
      under this Agreement, and such breach or failure continues unremedied for
      30 days after notice to the defaulting party describing such breach or
      failure in reasonable detail, the non-defaulting party may terminate this
      Agreement, unless such breach or failure cannot reasonably be cured within
      a 30-day period, in which case the non-defaulting party may not terminate
      so long as the defaulting party has promptly commenced and diligently
      pursued a remedy of such breach to the non-defaulting party’s reasonable
      satisfaction.

                  

          

           

          
            	
                     
      

                  	
                    3.3.

                  	
                    Insolvency.  Either
      party may immediately terminate this Agreement at any time in the event of
      the occurrence of any of the following events (each, an “Insolvency
      Event”):  (a) insolvency of the other party; (b) filing of a
      voluntary petition in bankruptcy by the other party; (c) filing of any
      involuntary petition in bankruptcy against the other party;
      (d) appointment of a receiver or trustee for the other party; or (e)
      execution of an assignment for the benefit of creditors by the other
      party, provided that any such petition, appointment or assignment is not
      vacated or nullified within 30 days of such event.  In the event
      of an Insolvency Event with regard to Balqon, Balqon will, to the greatest
      extent possible, protect Autocar’s interests and continue to comply with
      all obligations under this Agreement.  If at any time Balqon or
      a trustee or receiver on behalf of Balqon determines that Balqon will not
      continue to comply with all obligations under this Agreement due an
      Insolvency Event, Balqon will immediately notify Autocar of
      same.

                  

          

           

          
            
              
              

            

            
              4

              
                

              

            

            
              
              

            

          

           

          	
                  4.

                	
                  INTELLECTUAL PROPERTY.
      The parties agree that the rights, title and interest in and to any
      invention, innovation, design, idea, application, process or improvement
      (collectively, the “Intellectual Property”), related to or arising
      directly or indirectly out of the work performed under this Agreement or
      out of the technology of a party, shall be owned as
    follows.

                

        

         

        
          	
                   
      

                	
                  4.1.

                	
                  Autocar Intellectual
      Property.  If the Intellectual Property arises out of the
      technology of Autocar prior to or separate from the work performed by
      Autocar under this Agreement or relates solely to the Chassis, then
      Autocar shall continue to have all rights, title and interest in and to
      that Intellectual Property.  Autocar will not integrate any
      design change in the Drive Systems or utilize any of Autocar’s
      Intellectual Property in the Drive Systems without the prior written
      consent of Balqon.

                

        

         

        
          	
                   
      

                	
                  4.2.

                	
                  Balqon Intellectual
      Property.  If the Intellectual Property arises out of the
      technology of Balqon prior to or separate from the work performed by
      Balqon under this Agreement or relates solely to the Drive System, then
      Balqon shall continue to have all rights, title and interest in and to
      that Intellectual Property. Balqon will not integrate any design change in
      the Chassis or utilize any of Balqon’s Intellectual Property in the
      Chassis without the prior written consent of
  Autocar.

                

        

         

        
          	
                  5.

                	
                  GENERAL
      PROVISIONS

                

        

         

        
          	
                   
      

                	
                  5.1.

                	
                  Remedies.  The
      rights and remedies reserved to the parties in this Agreement will be
      cumulative and in addition to all other rights and remedies provided at
      law or in equity.  All representations, warranties, rights,
      powers and remedies of the parties will survive the termination of this
      Agreement.

                

        

         

        
          	
                   
      

                	
                  5.2.

                	
                  Damages.  Except
      as specifically set forth in this Agreement, neither party will be liable
      for any indirect, special, incidental, consequential or exemplary damages
      that may in any way be related to this
  agreement.

                

        

         

        
          	
                   
      

                	
                  5.3.

                	
                  Non-Assignment.  This
      Agreement may not be assigned by either party without the prior consent of
      the other party, except that either party may, without the other party’s
      consent but with prior notice to the other party, assign any or all of its
      rights and obligations under this Agreement (i) in connection with a sale
      of all or substantially all of the assets or equity interests of such
      party or (ii) to a subsidiary, sister company or other affiliate of
      such party.  Notwithstanding the foregoing, Balqon shall not
      assign any of its rights or obligations under this Agreement to an Autocar
      Competitor (as hereinafter defined), or engage in any other transaction
      the result of which is that Balqon is directly or indirectly controlled by
      an Autocar Competitor without Autocar’s prior written
      consent.  For the purposes hereof, an “Autocar Competitor” shall
      mean any original equipment manufacturer or any other person or entity (or
      any affiliate thereof) that, directly or indirectly, competes with Autocar
      in the refuse or yard tractor
industry.

                

        

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          	
                   
      

                	
                  5.4.

                	
                  Notice of Sale or
      Relocation.  Balqon will promptly, or as soon after such
      action is not prohibited by a Confidentiality Agreement between Balqon and
      any other party, give Autocar notice of any material negotiations between
      Balqon and any other party with regard to a sale of all or substantially
      all of the assets or equity, merger or similar transaction involving
      Balqon, and will keep Autocar informed as to the status and timetable
      thereof.

                

        

         

        
          	
                   
      

                	
                  5.5.

                	
                  Amendment and
      Waiver.  This Agreement may be amended only by a written
      document executed by both parties hereto.  No waiver of any
      rights of a party under this Agreement will be effective unless in writing
      and executed by the party granting the
waiver.

                

        

         

        
          	
                   
      

                	
                  5.6.

                	
                  Governing Law,
      Jurisdiction, Venue, Dispute Resolution and Attorneys’
      Fees.  This Agreement will be construed according to the
      laws of the State of Illinois without regard to its conflicts of laws
      provisions.  All actions or proceedings in any way, manner or
      respect arising out of or related to this Agreement will be litigated only
      in state or federal courts, as appropriate, located in Chicago,
      Illinois.  Each party hereby consents and submits to
      jurisdiction in the State of Illinois and waives any right to transfer the
      venue of any such action or proceeding.  Prior to initiating any
      cause of action, the parties will promptly attempt in good faith to
      resolve any controversy, claim or dispute of any nature arising out of or
      relating to this Agreement, or the breach, termination, enforceability,
      interpretation or validity of this Agreement (each, a “Dispute”) by
      negotiating between executives or managers who have authority to settle
      the Dispute.  The prevailing party in any litigation over a
      Dispute will be entitled to recover from the non-prevailing party all
      costs and expenses, including without limitation, reasonable attorneys’
      fees and costs incurred by such party in connection with such
      litigation.

                

        

         

        
          	
                   
      

                	
                  5.7.

                	
                  Survival.  The
      following sections will survive the termination of this
      Agreement:  1.6, 2.3, 2.4, 2.5, 4 and
  5.

                

        

         

        
          	
                   
      

                	
                  5.8.

                	
                  Entire
      Agreement.  This Agreement, together with the Converter
      Agreement, constitutes the entire agreement between Autocar and Balqon
      with respect to the subject matter contained herein and supersedes all
      prior oral or written representations and agreements as well as any
      drafts, purchase orders, sales confirmations, invoices or other
      communications issued prior to the Effective Date.  No terms or
      conditions contained in any purchase orders, sales confirmations, invoices
      or other communications which are contrary with those contained in this
      Agreement will have effect, and the terms and conditions of this Agreement
      will govern, unless otherwise specifically agreed to in writing, and then
      only to the extent of the terms specifically identified, and signed by the
      person executing this Agreement on behalf of a party or a more senior
      officer of such party. In the event of a conflict between the terms of
      this Agreement and the terms of the Converter Agreement, the terms of the
      Converter Agreement shall govern and control.  Terms not defined
      herein shall have the meanings ascribed to them in the Converter
      Agreement.

                

        

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        
          
            	
                     
      

                  	
                    5.9.

                  	
                    Binding
      Effect.  This Agreement will be binding upon and inure to
      the benefit of the parties hereto and their respective representatives,
      successors and permitted assigns.

                  
	 	 	 
	 	5.10.	Notices, Approvals and
      Consents.  All notices, approvals and consents to be
      given under this Agreement must be in writing and will be deemed given as
      of the date of receipt via personal delivery, facsimile, courier service,
      or Certified U.S. Mail, Return Receipt Requested. Notices must be given
      using the following contact information, which may be amended from time to
      time by written notice to the other
party:

          

        

         

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    If
      to Autocar:

                                  	 
      	
                                    Autocar,
      LLC

                                  
	 
      	 
      	
                                    551
      South Washington Street

                                  
	 
      	 
      	
                                    Hagerstown,
      IN  47346

                                  
	 
      	 
      	
                                    Attn: Vice President, Business Development

                                  
	 
      	 
      	
                                    Fax:  (765)
      489-5236

                                  
	 	 	 
	
                                     

                                  	with
      a copy to:	
                                    Horwood
      Marcus & Berk Chartered

                                  
	 
      	 
      	
                                    180
      N. LaSalle, Suite 3700

                                  
	 
      	 
      	
                                    Chicago,
      IL  60601

                                  
	 
      	 
      	
                                    Attn:  Keith
      H. Berk, Esq.

                                  
	 
      	 
      	
                                    Fax:  (312)
      264-2582

                                  
	 	 	 
	
                                    If
      to Balqon:

                                  	 
      	
                                    Balqon
      Corporation

                                  
	 
      	 
      	
                                    1420
      240th
      Street

                                  
	 
      	 
      	
                                    Harbor
      City, CA 90710

                                  
	 
      	 
      	
                                    Attn:  President

                                  
	 
      	 
      	
                                    Fax:  (310)
      326-3058

                                  
	 	 	 
	
                                     

                                  	with
      a copy to:	Rutan
      & Tucker, LLP
	 
      	
                                     

                                  	611
      Anton Blvd., 14th
      Floor
	 
      	
                                     

                                  	Costa
      Mesa, CA 92626
	 
      	
                                     

                                  	Attn:  Larry
      A. Cerutti, Esq.
	 
      	
                                     

                                  	Fax:
      (714) 546-9035

                          

                           

                        

                      

                    

                  

                

              

            

          

        

      

      
        
          
            	
                      

                  	
                    5.11.

                  	
                    
                      Headings.  The
      section or paragraph headings or titles herein are for convenience of
      reference only and will not be deemed a part of this
      Agreement.

                    

                  
	 	 	 
	 	5.12.	
                    Counterparts.  This Agreement may be
      executed in multiple counterparts and by facsimile, each of which will be
      deemed to be an original and all of which taken together will constitute a
      single
instrument.

                  

          

        

         

        
          
            
              
                
                  
                    
                      
                        
                          [Signature page
follows.]

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the parties have signed this Supplemental Agreement as of the
date set forth above.

       

      
        
          
            
              
                
                  
                    
                      	 	 	 	
                              AUTOCAR,
      LLC,

                              a
      Delaware limited liability company

                            	 
	 	 	 	 	 
	
                               

                            	 	 	
                              By: /s/
      Eric R. Schwartz

                            	 
	
                               

                            	 	 	
                              Eric R. Schwartz
      

                                Vice
      President

                              

                            	 

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              
                
                  	 	 	 	
                          BALQON
      CORPORATION,

                          a
      Nevada corporation

                        	 
	 	 	 	 	 
	
                           

                        	 	 	
                          By: /s/
      Balwinder Samra

                        	 
	
                           

                        	 	 	
                          
                            Balwinder
      Samra

                            President
      and Chief Executive Officer

                          

                        	 

                

              

            

          

        

      

    

     

     

    8FIRST AMENDMENT TO

Exhibit 10FFF

 

FIRST AMENDMENT TO PURCHASE AND SALE CONTRACT

 

 

THIS FIRST AMENDMENT TO PURCHASE AND SALE CONTRACT (this
“Amendment”) is made and entered into as of the 8th day of
October, 2009 by and between AIMCO COVINGTON POINTE, L.P., a Delaware limited
partnership (“Seller”), and KENNEDY WILSON AUSTIN, INC., a Texas
corporation (“Purchaser”).

 

WI T
N E S S E T H:

 

WHEREAS, Seller and Purchaser are
parties to that certain Purchase and Sale Contract dated September 8, 2009 (the
“Contract”) pertaining to the purchase and sale of that certain
real property located in Dallas County, Texas more particularly described on
Exhibit A attached thereto and commonly known as the Covington Pointe
Apartments (the “Property”); 

WHEREAS, the
parties desire to extend the Feasibility Period for a period of 6 days to
October 14, 2009; and 

WHEREAS, the
parties intend to modify the Contract to reflect the foregoing, as more
particularly set forth hereinafter.

AM E
N D M E N T

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

1.                 
Capitalized Terms.  All capitalized terms and phrases used herein shall
have the same meanings given to them in the Contract.  

2.                 
Feasibility Period.  The first sentence of Section 3.1 of the Contract
is hereby amended to provide that the Feasibility Period shall run for a period
of 36 days from the Effective Date rather than for a period of 30 days from the
Effective Date.

3.                 
Counterparts.  This Amendment may be executed in multiple
counterparts, each of which shall be an original and all of which together shall
constitute one and the same Amendment.  It shall not be necessary that each
party execute each counterpart, or that any one counterpart be executed by more
than one party, so long as each party executes at least one
counterpart.

4.                 
Ratification.  Except as expressly set forth herein, all other
terms and conditions of the Contract, as previously amended, shall remain
unmodified, the same being ratified, confirmed and republished
hereby.

5.                 
Governing Law.  This Amendment shall be governed by and construed
in accordance with the laws of the State of Texas. 

[SIGNATURES ON FOLLOWING PAGE]

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

Seller:

AIMCO COVINGTON POINTE, L.P.,

a
Delaware limited partnership

 

By:      
DAVIDSON GP, L.L.C.,

a
South Carolina limited liability company,

its
general partner

 

By:      
DAVIDSON INCOME REAL ESTATE, L.P., 

a
Delaware limited partnership, its member

 

By:      
DAVIDSON DIVERSIFIED PROPERTIES, INC.,

a
Tennessee corporation,

its
managing general partner

 

By: 
/s/Trent A. Johnson

Name: 
Trent A. Johnson

Title: 
Vice President

 

 

                                                           
Purchaser:

 

KENNEDY
WILSON AUSTIN, INC., 

a
Texas corporation

 

By: 
/s/Stephen A. Pyhrr

                                                           
Name:  Stephen A. Pyhrr

Title: 
Senior Managing Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]