Document:

Exhibit 10.22

 

 

 

 

 

PURCHASE AND SALE
CONTRACT

 

BETWEEN

 

 

 

APARTMENT LODGE 17A
LLC,

 

a Colorado limited liability
company

 

 

 

AS SELLER

 

 

 

AND

 

 

 

FF REALTY LLC,

 

a Delaware limited liability
company

 

 

 

AS PURCHASER

 

 

 

HAMPDEN HEIGHTS
APARTMENTS

 

 

Article I

	
DEFINED TERMS
	
1

 

Article
II
PURCHASE AND SALE, PURCHASE PRICE & DEPOSIT

	
2.1
	
Purchase
and Sale
	
1

	
2.2
	
Purchase
Price and Deposit
	
1

	
2.3
	
Escrow
Provisions Regarding Deposit
	
2

 

Article
III
FEASIBILITY PERIOD

	
3.1
	
Feasibility
Period
	
3

	
3.2
	
Expiration
of Feasibility Period
	
3

	
3.3
	
Conduct
of Investigation
	
3

	
3.4
	
Purchaser
Indemnification
	
4

	
3.5
	
Property
Materials
	
5

	
3.6
	
Property
Contracts
	
6

 

Article
IV
TITLE

	
4.1
	
Title
Documents
	
6

	
4.2
	
Survey
	
6

	
4.3
	
Objection
and Response Process
	
7

	
4.4
	
Permitted
Exceptions
	
7

	
4.5
	
Assumed
Encumbrances
	
8

	
4.6
	
Subsequently
Disclosed Exceptions
	
10

	
4.7
	
Purchaser
Financing
	
10

	
4.8
	
Housing
Assistance Program Vouchers
	
11

 

Article
V
CLOSING

	
5.1
	
Closing
Date
	
12

	
5.2
	
Seller
Closing Deliveries
	
12

	
5.3
	
Purchaser
Closing Deliveries
	
13

	
5.4
	
Closing
Prorations and Adjustments
	
13

	
5.5
	
Post
Closing Adjustments
	
17

 

Article
VI
REPRESENTATIONS AND WARRANTIES OF SELLER AND PURCHASER

	
6.1
	
Seller’s
Representations
	
17

	
6.2
	
AS-IS
	
19

	
6.3
	
Survival
of Seller’s Representations
	
20

	
6.4
	
Definition
of Seller’s Knowledge
	
20

	
6.5
	
Representations
and Warranties of Purchaser
	
21

 

Article
VII
OPERATION OF THE PROPERTY

	
7.1
	
Leases
and Property Contracts
	
22

	
7.2
	
General
Operation of Property
	
22

	
7.3
	
Liens
	
22

	
7.4
	
Rent
Ready Condition
	
22

 

Article
VIII
CONDITIONS PRECEDENT TO CLOSING

	
8.1
	
Purchaser’s
Conditions to Closing
	
23

	
8.2
	
Seller’s
Conditions to Closing
	
23

 

Article
IX
BROKERAGE

	
9.1
	
Indemnity
	
24

	
9.2
	
Broker
Commission
	
24

 

Article
X
DEFAULTS AND REMEDIES

	
10.1
	
Purchaser
Default
	
25

	
10.2
	
Seller
Default
	
25

 

Article
XI
RISK OF LOSS OR CASUALTY

	
11.1
	
Major
Damage
	
26

	
11.2
	
Minor
Damage
	
26

	
11.3
	
Closing
	
27

	
11.4
	
Repairs
	
27

 

Article
XII
EMINENT DOMAIN

	
12.1
	
Eminent
Domain
	
27

 

Article
XIII
MISCELLANEOUS

	
13.1
	
Binding
Effect of Contract
	
28

	
13.2
	
Exhibits
and Schedules
	
28

	
13.3
	
Assignability
	
28

	
13.4
	
Captions
	
28

	
13.5
	
Number
and Gender of Words
	
28

	
13.6
	
Notices
	
28

	
13.7
	
Governing
Law and Venue
	
31

	
13.8
	
Entire
Agreement
	
31

	
13.9
	
Amendments
	
32

	
13.10
	
Severability
	
32

	
13.11
	
Multiple
Counterparts/Facsimile Signatures
	
32

	
13.12
	
Construction
	
32

	
13.13
	
Confidentiality
	
32

	
13.14
	
Time
of the Essence
	
32

	
13.15
	
Waiver
	
32

	
13.16
	
Attorneys’
Fees
	
33

	
13.17
	
Time
Zone/Time Periods
	
33

	
13.18
	
Intentionally
omitted
	
33

	
13.19
	
No
Personal Liability of Officers, Trustees or Directors
	
33

	
13.20
	
ADA
Disclosure
	
33

	
13.21
	
No
Recording
	
33

	
13.22
	
Relationship
of Parties
	
33

	
13.23
	
AIMCO
Marks
	
34

	
13.24
	
Non-Solicitation
of Employees
	
34

	
13.25
	
Survival
	
34

	
13.26
	
Multiple
Purchasers
	
34

	
13.27
	
WAIVER
OF JURY TRIAL
	
34

 

Article
XIV
LEAD–BASED PAINT DISCLOSURE

	
14.1
	
Disclosure
	
34

	
14.2
	
Consent
Agreement
	
35

EXHIBITS AND SCHEDULES

 

EXHIBITS

 

Exhibit
A          Legal Description

Exhibit
B          Form of Special Warranty
Deed

Exhibit
C          Form of Bill of Sale

Exhibit
D          Form of General
Assignment and Assumption

Exhibit
E           Form of Assignment
and Assumption of Leases and Security Deposits

Exhibit
F           Form of Notice to
Vendor regarding Termination of Contract

Exhibit
G          Form of Tenant
Notification

Exhibit
H          Form of Lead Paint
Disclosure

 

 

SCHEDULES

 

Schedule
1       Defined Terms

 

 

PURCHASE AND SALE CONTRACT

 

THIS
PURCHASE AND SALE CONTRACT (this “Contract”) is entered
into as of the 23rd day of May, 2011 (the “Effective
Date”), by and between APARTMENT LODGE 17A LLC, a Colorado
limited liability company, having an address at 4582 South Ulster Street
Parkway, Suite 1100, Denver, Colorado 80237 (“Seller”), and FF
REALTY LLC, a Delaware limited liability company, having a principal
address at 5510 Morehouse Drive, Suite 200, San Diego, California 92121
(“Purchaser”).

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

RECITALS

A.       
Seller owns the real estate located in the City and County of Denver, Colorado,
as more particularly described in Exhibit A attached hereto and made
a part hereof, and the improvements thereon, commonly known as Hampden Heights
Apartments.

B.        
Purchaser desires to purchase, and Seller desires to sell, such land,
improvements and certain associated property, 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 Schedule 1 attached
hereto and made a part hereof.

Article
II
PURCHASE AND SALE, PURCHASE PRICE & DEPOSIT

2.1             
Purchase and Sale.  Seller agrees to
sell and convey the Property to Purchaser and Purchaser agrees to purchase the
Property from Seller, all in accordance with the terms and conditions set forth
in this Contract.

2.2             
Purchase Price and Deposit.  The total purchase price
(“Purchase Price”) for the Property shall be an amount equal to
$22,750,000.00, payable by Purchaser, as follows:

2.2.1       
Within 2 Business Days following the Effective Date, Purchaser shall
deliver to Stewart Title Guaranty Company, 1980 Post Oak Boulevard, Suite 610,
Houston, Texas 77056, Attention: Wendy Howell, Phone: (713) 625-8161, Fax: (713)
552-1703, email: whowell@stewart.com (“Escrow Agent” or
“Title Insurer”) an initial deposit (the “Initial
Deposit”) of $300,000.00 by wire transfer of immediately available funds
(“Good Funds”).  

2.2.2       
Within 1 Business Day of the day that the Feasibility Period expires,
Purchaser shall deliver to Escrow Agent an additional deposit (the
“Additional Deposit”) of $300,000.00 by wire transfer of Good
Funds.  

2.2.3       
At the Closing, subject to Purchaser’s obligations under
Section 4.5, Purchaser shall
receive a credit against the Purchase Price in the amount of the outstanding
principal balance of the Note, together with all accrued but unpaid interest (if
any) thereon, as of the Closing Date (the “Loan Balance”) to the
extent that the Loan Assumption and Release occurs at the Closing.

2.2.4       
The balance of the Purchase Price for the Property shall be paid to and
received by Escrow Agent by wire transfer of Good Funds no later than 12:00 p.m.
on the Closing Date.

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 an FDIC-insured, interest-bearing bank account or
FDIC-insured money market fund reasonably approved by Purchaser and Seller, 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 and apply the Deposit in strict accordance with
the terms of this Contract.  The tax identification numbers of the parties
shall be furnished to Escrow Agent upon request.

2.3.3       
Except for the return of the Deposit to Purchaser as a result of
Purchaser exercising its termination right under Section 3.2 below (in which event Escrow Agent shall
promptly release the Deposit to Purchaser on demand), if prior to the Closing
Date either party makes a written demand upon Escrow Agent for payment of the
Deposit, Escrow Agent shall give written notice to the other party of such
demand.  If Escrow Agent does not receive a written objection from the
other party to the proposed payment within 5 Business 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 5-Business 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 and interest thereon, if any, with a court of
competent jurisdiction in the state in which the Property is located. 
Escrow Agent shall give written notice of such deposit to Seller and
Purchaser.  Upon such deposit, Escrow Agent shall be relieved and
discharged of all further obligations and responsibilities hereunder.  Any
return of the Deposit to Purchaser provided for in this Contract shall be
subject to Purchaser’s obligations set forth in Section 3.5.2.  

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 either of the parties and shall not be
liable 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. 
Seller 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.

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, Seller, 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 June 22, 2011 (the
“Feasibility Period”), Purchaser, and its agents, contractors,
engineers, surveyors, attorneys, prospective lenders and investors, and
employees (collectively, “Consultants”) shall, at no cost or
expense to Seller, have the right from time to time to enter onto the Property
to conduct and make any and all customary studies, tests, examinations,
inquiries, inspections and investigations of or concerning the Property, review
the Materials and otherwise confirm any and all matters which Purchaser may
reasonably desire to confirm with respect to the Property 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 by giving written
notice to that effect to Seller and Escrow Agent no later than 5:00 p.m. on or
before the date of expiration of the Feasibility Period.  If Purchaser
fails to provide Seller with written notice that it approves such matters on or
before such date, Purchaser shall be deemed to have disapproved such matters,
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 provides written notice of its
approval of such matters 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 expressly set forth in this Contract, and
Purchaser’s obligation to purchase the Property shall be conditional only as
provided in Section 8.1.

3.3             
Conduct of Investigation.  Purchaser shall remove or
cause to be removed any mechanics’ or materialmen’s liens or any other liens
that attach to the 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, whether by payment, posting of a lien release bond or
otherwise.  Purchaser shall give reasonable advance notice to Seller prior
to any entry onto the Property and shall permit Seller to have a representative
present during all Inspections conducted at the Property.  Purchaser shall
take all reasonable actions and implement all protections necessary to ensure
that all actions taken in connection with the Inspections, and all equipment,
materials and substances generated, used or brought onto the 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 Seller (in
Seller’s sole discretion), defend (with counsel reasonably approved by Seller)
Seller, together with 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 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 the Property, and any Inspections or
other acts by Purchaser or Purchaser’s Consultants with respect to the Property
during the Feasibility Period or otherwise.  Purchaser shall, however,
not be liable for any damages incurred by Seller resulting from the mere
discovery by Purchaser of a pre-existing condition at or with regard to the
Property; provided, however, that, if Purchaser proceeds with acquisition of the
Property after the expiration of the Feasibility Period, Purchaser shall accept
the Property with such pre-existing condition and assume any liabilities
associated therewith.

3.4.2       
Notwithstanding anything in this Contract to the contrary, Purchaser
shall not be permitted to perform any invasive tests on the Property without
Seller’s prior written consent, which consent shall not be unreasonably
withheld, conditioned or delayed.  If Purchaser desires to perform any
invasive tests, Purchaser shall give prior written notice thereof to Seller,
which notice shall be accompanied by a detailed description and plan of the
invasive tests Purchaser desires to perform.  Further, Seller shall have
the right, without limitation, to disapprove any and all entries, surveys, tests
(including, without limitation, a Phase II environmental study of the Property),
investigations and other matters that in Seller’s reasonable judgment could
result in any injury to the Property or breach of any contract, or expose Seller
to any Losses or violation of applicable law, or otherwise adversely affect the
Property or Seller’s interest therein.  Purchaser shall, at Purchaser’s
sole cost and expense, and in accordance with all applicable environmental laws,
dispose of any hazardous materials which have been specifically removed from or
at the Property by Purchaser or its agents, representatives, employees or
designees in connection with Purchaser’s environmental studies.  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 Seller to any such activity shall be deemed to constitute a waiver
by Seller or assumption of liability or risk by Seller.  Purchaser hereby
agrees to restore, at Purchaser’s sole cost and expense, the Property 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 $1,000,000.00 for injury or death to any one person
and $3,000,000.00 for injury or death to more than one person and $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 in
which the Property is located.  Purchaser shall deliver proof of the
insurance coverage required pursuant to this Section 3.4.2 to Seller (in the form of a
certificate of insurance) prior to the earlier to occur of (i) Purchaser’s
or Purchaser’s Consultants’ entry onto the Property, or (ii) the expiration
of 5 days after the Effective Date.

3.5             
Property Materials.  

3.5.1       
Within 2 Business Days after the Effective Date, and to the extent the
same have not already been provided by Seller to Purchaser, Seller agrees to
use reasonable efforts to deliver to Purchaser, or at Seller’s option make
available at the Property for Purchaser’s review and photocopying at Purchaser’s
expense, copies of such documents and information concerning the Property that
are in Seller’s possession or reasonable control, other than such documents and
information that Seller reasonably deems to be confidential or otherwise of the
nature that AIMCO typically does not provide to buyers of its properties
(provided, that in connection with withholding any such information, Seller will
not knowingly withhold from Purchaser material information concerning the
physical condition of the Property or the status of Seller’s obligations under
any Lease, Property Contract or Assumed Loan Document or the financial
statements used by Seller in the day to day management and operation of the
Property) (collectively, the “Materials”).

3.5.2       
Except as expressly set forth in Seller’s Representations, Seller makes
no representations or warranties, 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 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 and the Seller’s Representations with
respect to all matters which it deems relevant to its decision to acquire, own
and operate the Property.  All Materials and Third-Party Reports shall
be returned to Seller or destroyed by Purchaser if this Contract is terminated
for any reason.

3.5.3       
Not later than 2 Business Days after the Effective Date, and to the
extent the same has not already been provided by Seller to Purchaser, Seller
shall deliver to Purchaser (or otherwise make available to Purchaser as provided
under Section 3.5.1) the
most recent rent roll for the Property, which is the rent roll Seller uses in
the ordinary course of operating the Property (the “Rent
Roll”).  Seller makes no representations or warranties regarding
the Rent Roll other than the express representation set forth in
Section 6.1.5.  Seller
shall deliver to Purchaser on a monthly basis an updated Rent Roll.

3.5.4       
Not later than 2 Business Days after the Effective Date, and to the
extent the same has not already been provided by 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 (the “Property Contracts
List”).  Seller makes no representations or warranties regarding the Property Contracts List other than
the express representations set forth in Section 6.1.6. 

3.6             
Property Contracts.  On or before the expiration of
the Feasibility Period, Purchaser may deliver written notice to Seller (the
“Property Contracts Notice”) specifying any Property Contracts on
the Property Contracts List 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 on
the Property Contracts List 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 the Property Contracts Notice on or before the expiration of the
Feasibility Period, then there shall be no Terminated Contracts and Purchaser
shall assume all Property Contracts on the Property Contracts List at the
Closing.  If Purchaser delivers the Property Contracts Notice to Seller on
or before the expiration of the Feasibility Period, then Seller shall execute
and deliver, on or before Closing, 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”).  To the extent that any Property Contract to be
assigned to Purchaser requires vendor consent, then, prior to the Closing,
Purchaser and Seller shall attempt to obtain from each applicable vendor a
consent (each a “Required Assignment Consent”) to such assignment,
and Purchaser shall indemnify, hold harmless and, if requested by Seller (in
Seller’s sole discretion), defend (with counsel approved by Seller) Seller’s
Indemnified Parties from and against any and all Losses arising from or related
to a failure to obtain such consents.

Article
IV
TITLE

4.1             
Title Documents.  Within 5 days after the Effective
Date, Seller shall cause to be delivered to Purchaser a standard form commitment
(“Title Commitment”) to provide a standard American Land Title
Association owner’s title insurance policy for the Land and Improvements, using
the current policy jacket customarily provided by the Title Insurer, in an
amount equal to the 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”).  Seller shall be responsible only for payment of the
base premium for the Title Policy.  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.  Subject to Section 3.5.2, within 3 Business Days after the
Effective Date, Seller shall deliver to Purchaser the existing survey of the
Property dated May 19, 2008, prepared by Millman Surveyors (the “Existing
Survey”).  Purchaser may, at its sole cost and expense, order a new
or updated survey of the Property either before or after the Effective Date (such new or updated survey together with the Existing
Survey, is referred to herein as the “Survey”).  

4.3             
Objection and Response Process.  On or before the date
which is 5 Business Days prior to expiration of the Feasibility Period (the
“Objection Deadline”), Purchaser shall give written notice (the
“Objection Notice”) to the attorneys for Seller of any matter set
forth in the Title Documents and the Survey to which Purchaser objects (the
“Objections”).  If Purchaser fails to tender an Objection
Notice 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.  On or before 2 Business Days prior to
expiration of the Feasibility Period (the “Response Deadline”),
Seller may, in Seller’s sole discretion, give Purchaser notice (the
“Response Notice”) of those Objections which Seller is willing to
cure, if any; provided that Seller agrees to remove all monetary liens caused by
Seller affecting the property (other than the Assumed Encumbrances) and Seller
shall not have the right to refuse to remove same.  Seller shall be
entitled to reasonable adjournments of the Closing Date to cure the Objections,
not to exceed 30 days in the aggregate.  If Seller fails to deliver a
Response Notice by the Response Deadline, 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 the Response Notice or the lack
of 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. 

4.4             
Permitted Exceptions.  The Deed delivered pursuant to
this Contract shall be subject to the following, all of which shall be deemed
“Permitted Exceptions”:

4.4.1       
All matters shown in the Title Documents and the Survey, other than
(a) those Objections, if any, which Seller has agreed to cure pursuant to
the Response Notice under Section 4.3, (b) mechanics’ liens and taxes and
other monetary liens caused by Seller (other than the Assumed Encumbrances) due
and payable with respect to the period preceding Closing, (c) the standard
exception regarding the rights of parties in possession, which shall be modified
to be limited to those parties in possession pursuant to the Leases, and
(d) the standard exception pertaining to taxes and assessments, which shall
be limited to taxes and assessments not yet due and payable as of the Closing
Date; 

4.4.2       
All Leases;

4.4.3       
The Assumed Encumbrances;

4.4.4       
Applicable zoning and governmental regulations and ordinances;
and

4.4.5       
Any defects in or objections to title to the Property, or title
exceptions or encumbrances, arising by, through or under Purchaser.

4.5             
Assumed Encumbrances.

4.5.1       
Purchaser recognizes and agrees that, in connection with a loan (the
“Loan”) made to Seller by Key Bank and assigned to the Federal
Home Loan Mortgage Corporation (the “Lender”), the Property
presently is encumbered by a deed of trust dated June 30, 2008 and
recorded July 1, 2008 at Reception No. 2008091358 and re-recorded
July 9, 2008 at Reception No. 2008094512 (the “Assumed Deed of
Trust”) and certain other security and related documents in connection
with the Loan (collectively, the “Assumed Encumbrances”). 
The Loan is evidenced by that certain promissory note dated June 30, 2008 in the
stated principal amount of $14,082,000.00 (the “Note,” and
together with the Assumed Deed of Trust, the Assumed Encumbrances and any other
documents executed by Seller in connection with the Loan, the “Assumed
Loan Documents”), executed by Seller and payable to the order of the
Lender.  Within 2 Business Days after the Effective Date, Seller agrees
that it will make available to Purchaser (in the same manner in which Seller is
permitted to make the Materials available to Purchaser under
Section 3.5.1) copies of
the Assumed Loan Documents (subject to Section 3.5.2).  Within 5 days after the
Effective Date, Seller shall request that Lender provide Purchaser with an
assumption application.

4.5.2       
Purchaser agrees that, at the Closing, (a) Purchaser shall assume
Seller’s obligations under the Note and all of the other Assumed Loan Documents
arising from and after Closing, subject to the terms of Lender’s requirements
relating to the Loan Assumption and Release, and accept title to the Property
subject to the Deed of Trust and the Assumed Encumbrances, and
(b) the Lender shall release 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)
first arising from and after Closing, subject to the terms of Lender’s
requirements relating to the Loan Assumption and Release, including, without
limitation, any obligation to make payments of principal and interest under the
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 Seller, AIMCO or their
respective affiliates (the “Specific AIMCO Provisions”), and
(y) unless Lender otherwise agrees in 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.

4.5.3       
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 15 days after the Effective Date (the
“Loan Assumption Application Submittal Deadline”), shall submit a
complete application to Lender for assumption of the Loan together with all
documents and information required in connection therewith (the “Loan
Assumption Application”) and Purchaser shall otherwise satisfy the
requirements set forth in the Assumed Loan Documents to allow for the Loan
Assumption and Release to occur within the time limits contemplated by this
Contract.  Purchaser agrees to provide Seller with a copy of the Loan
Assumption Application on or prior to the Loan Assumption Application Submittal
Deadline and shall provide evidence of its submission to Lender on or before the
Loan Assumption Application Submittal Deadline.  Purchaser acknowledges and
agrees that Purchaser is solely responsible for the
preparation and submittal of the Loan Assumption Application, including the
collection of all materials, documents, certificates, financials, signatures,
and other items required to be submitted to Lender in connection with the Loan
Assumption Application.

4.5.4       
Purchaser shall use commercially reasonably efforts to comply with
Lender’s assumption guidelines in connection with the Loan Assumption and
Release, and, if required by the Lender, Purchaser shall cause such other person
or entity reasonably acceptable to the Lender, to execute and deliver a
customary “non-recourse carve-out” guaranty and such other guaranty(s), if any,
which are a part of the Assumed Loan Documents and a customary environmental
indemnity in favor of Lender.  Purchaser shall be responsible at its sole
cost and expense for promptly correcting and re-submitting any deficiencies
noted by Lender in connection with the Loan Assumption Application. 
Purchaser also shall provide Seller with a copy of any correspondence from
Lender with respect to the Loan Assumption Application no later than 3 Business
Days after receipt of such correspondence from Lender.  Purchaser
acknowledges that Lender’s assumption guidelines may not be consistent with the
provisions of the Assumed Loan Documents concerning the Loan Assumption and
Release.  Purchaser shall use commercially reasonable efforts to coordinate
with the Lender to comply with the appropriate provisions of both the Assumed
Loan Documents and Lender assumption guidelines in order to allow for the Loan
Assumption and Release.

4.5.5       
Purchaser shall pay all fees and expenses (including, without limitation,
all servicing fees and charges, transfer fees, assumption fees, title fees and
endorsement fees) imposed or charged by the Lender or its counsel (such fees and
expenses collectively being referred to as the “Lender Fees”), in
connection with the Loan Assumption Application and the Loan Assumption and
Release.

4.5.6       
Seller shall assign all of its right, title and interest in and to all
reserves, impounds and other accounts held by Lender in connection with the
Loan, and at Closing, Purchaser shall remit to Seller an amount equal to the
balance of such reserves, impounds and accounts so assigned.  Additionally,
Purchaser shall be responsible for funding any additional or increased reserves,
impounds or accounts required by Lender to be maintained by Purchaser in
connection with the Loan after the Loan Assumption and Release (the
“Required Loan Fund Amounts”).

4.5.7       
Purchaser agrees to use commercially reasonable efforts to promptly
deliver to the Lender all documents and information required by the Assumed Loan
Documents, and such other information or documentation as the Lender reasonably
may request, including, without limitation, financial statements, income tax
returns and other financial information for Purchaser and any required
guarantor.  Seller agrees that it will cooperate with Purchaser and Lender,
at no cost or expense to Seller, in connection with Purchaser’s application to
Lender for approval of the Loan Assumption and Release.

4.5.8       
To the extent required by Lender, no later than 10 days after the
Effective Date, Purchaser shall order a Phase I Environmental study and/or
property condition report (prepared by a consultant and engineer reasonably
acceptable to Seller and Lender), and covenants that such Phase I Environmental
study and/or property condition report shall be delivered to Seller and Lender no later than 7 days prior to
the Closing Date in connection with and as a precondition to the Loan Assumption
and Release.

4.6             
Subsequently Disclosed Exceptions.  If at any time
after the expiration of the Feasibility Period, any update to the Title
Commitment or Existing Survey discloses any additional item that materially
adversely affects title to the Property which was not disclosed on any version
of or update to the Title Commitment delivered to Purchaser during the
Feasibility Period (the “New Exception”), Purchaser shall have a
period of 5 days from the date of its receipt of such update (the “New
Exception Review Period”) to review and notify Seller in writing of
Purchaser’s approval or disapproval of the New Exception.  If Purchaser
disapproves of the New Exception, Seller may, in Seller’s sole discretion,
notify Purchaser as to whether it is willing to cure the New Exception.  If
Seller elects to cure the New Exception, Seller shall be entitled to reasonable
adjournments of the Closing Date to cure the New Exception, not to exceed 30
days in the aggregate.  If Seller fails to deliver a notice to Purchaser
within 3 days after the expiration of the New Exception Review Period, Seller
shall be deemed to have elected not to cure the New Exception.  If
Purchaser is dissatisfied with Seller’s response, or lack thereof, Purchaser
may, as its exclusive remedy elect either:  (i) to terminate this
Contract, in which event the Deposit shall be promptly returned to Purchaser 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 Seller of its
election to terminate this Contract in accordance with the foregoing sentence
within 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.  

4.7             
Purchaser Financing.  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. 
Notwithstanding the foregoing to the contrary and provided that
(a) Purchaser fully complies with its obligations under this Contract
(including this Section 4.7)
and the requirements of the Assumed Deed of Trust (including, without
limitation, Section 21 thereof) in connection with obtaining the Loan Assumption
and Release, (b) Purchaser uses commercially reasonable efforts to obtain
the Loan Assumption and Release, as set forth in Section 4.5, and (c) Purchaser does not obtain
the written approval of the Lender to the Loan Assumption and Release within 60
days after the Effective Date (the “Loan Approval Period”), then
Purchaser shall have the right to give Escrow Agent notice terminating this
Contract (the “Loan Assumption Approval Termination”) on or before
the expiration of the Loan Approval Period, in which event this Contract shall
be of no further force and effect, subject to and except for Purchaser’s
liability pursuant to Section 3.3 and any other provision of this
Contract which survives such termination, and Escrow Agent shall forthwith
return the Deposit to Purchaser.  Provided that Purchaser is not in default
under the terms of this Contract, Purchaser shall be permitted a one-time 30-day
extension of the Loan Approval Period specified above for the sole purpose of
obtaining the Loan Assumption and Release by (i) delivering written notice
to Seller no later than 5 days prior to the expiration of the Loan Approval
Period, and (ii) simultaneously with such notice to Seller, delivering to
Escrow Agent the amount of $50,000.00, which amount when received by Escrow
Agent shall be added to the Deposit hereunder, shall be non-refundable (except
as otherwise expressly provided herein with respect to the Deposit), and shall
be held, credited and disbursed in the same manner as provided hereunder with
respect to the Deposit.  Purchaser shall also have the right to review and
approve, in Purchaser’s sole and absolute discretion,
prior to the expiration of the Loan Approval Period, (i) the terms and
conditions of the Loan and the Assumed Loan Documents including, without
limitation, any deletion or modification of any specific AIMCO Provisions,
(ii) the terms and conditions imposed by Lender to assume the Assumed Loan
Documents, including, without limitation, any modifications to the Assumed Loan
Documents proposed by Lender as a condition to the Loan Assumption and Release
and/or any modifications to the Assumed Loan Documents requested by the
Purchaser as a condition to the Loan Assumption and Release that are rejected by
the Lender; and (iii) the form of the documents evidencing the Loan
Assumption and Release.  If Purchaser fails to provide Seller with written
notice of termination prior to the expiration of the Loan Approval Period (as
the same may be extended) in strict accordance with the notice provisions of
this Contract, Purchaser’s right to terminate under this Section 4.7 shall be permanently waived, this
Contract shall remain in full force and effect, the Deposit shall be
non-refundable, and Purchaser’s obligation to obtain the Lender’s approval of
the Loan Assumption and Release and to purchase the Property shall be
non-contingent and unconditional except only for satisfaction of the conditions
expressly stated in Section 8.1.  Purchaser recognizes and agrees
that if the Loan Approval Period expires and Purchaser does not terminate this
Contract, the Loan Assumption and Release shall not be a condition to
Purchaser’s obligation to close, and, if the Loan Assumption and Release is not
obtained and the Closing has not occurred on or before the Closing Date other
than due to a default by Seller, Purchaser shall be in default under this
Contract, entitling the Seller to terminate this Contract, in which event the
Deposit shall be immediately released to Seller by the Escrow Agent and this
Contract shall be of no further force and effect, subject to and except for
Purchaser’s liability pursuant to Section 3.3 and any other provision of this
Contract which survives such termination. 

4.8             
Housing Assistance Program Vouchers.  Purchaser
acknowledges that the HAP Tenant Based 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 assumption of the HAP Tenant Based Voucher
Contract(s).  Seller agrees to deliver or make available to Purchaser as
part of the Materials copies of all HAP Tenant Based Voucher Contract(s)
affecting the Property within 2 Business Days of the Effective Date (subject to
Section 3.5.2).  From
and after the Effective Date, Seller agrees not to enter into any new HAP Tenant
Based Voucher Contract(s) with respect to the Property without the prior written
consent of Purchaser (which consent, prior to the expiration of the Loan
Approval Period, shall not be unreasonably withheld, and after the expiration of
the Loan Approval Period, may be withheld in Purchaser’s sole and absolute
discretion). Purchaser agrees that, at the Closing, either (a) Purchaser
shall assume all obligations under the HAP Tenant Based Voucher Contract(s) and
accept title to the applicable Property subject to the same, or (b) the
existing HAP Tenant Based Voucher Contract(s) shall be terminated, and Purchaser
shall enter into replacement HAP Tenant Based Voucher Contract(s) which are
acceptable to the Housing Authority (collectively, the foregoing (a) and (b)
referred to herein as the “HAP Tenant Based Voucher
Assumption”).  Seller hereby agrees to reasonably cooperate with
Purchaser, at no cost to Seller, to accomplish the HAP Tenant Based Voucher
Assumption.  Purchaser shall indemnify and hold the Seller and the Seller’s
Indemnified Parties harmless from and against any and all claims, losses,
damages, and expenses (including reasonable attorneys’ fees) that may be
incurred by Seller and/or any of the Seller’s Indemnified Parties from and after
the Closing Date, in connection with the HAP Tenant Based Voucher
Assumption.

Article V
CLOSING

5.1             
Closing Date.  The Closing shall occur on the date
that is fifteen (15) days after the expiration of the Loan Approval Period (the
“Closing Date”); provided, that either Purchaser or Seller by
written notice delivered to the other may extend the Closing Date for up to
fifteen (15) days (as specified in such notice) if Purchaser or Seller
reasonably determines that Lender shall not be in a position to consummate the
Loan Assumption and Release as of the originally scheduled Closing Date. 
The Closing shall be accomplished through an escrow with Escrow Agent, whereby
Seller, Purchaser and their attorneys need not be physically present at the
Closing and may deliver documents by overnight air courier or other means. 
Notwithstanding the foregoing to the contrary, if required by Lender the Closing
Date may be extended to the last Business Day of the month in which the Closing
Date otherwise would occur pursuant to the preceding sentence, in connection
with the Loan Assumption and Release.  

5.2             
Seller Closing Deliveries.  Except for the closing
statement which shall be delivered on or before the Closing Date, Seller shall
deliver to Escrow Agent, each of the following items no later than 1 Business
Day prior to the Closing Date:

5.2.1       
Special Warranty Deed (the “Deed”) in the form attached as
Exhibit B to Purchaser, subject to the Permitted Exceptions.

5.2.2       
A Bill of Sale in the form attached as Exhibit C.

5.2.3       
A General Assignment in the form attached as Exhibit D (the
“General Assignment”).

5.2.4       
An Assignment of Leases and Security Deposits in the form attached as
Exhibit E (the “Leases Assignment”).

5.2.5       
Seller’s counterpart signature to the closing statement prepared by Title
Insurer.

5.2.6       
A title affidavit or an indemnity form reasonably acceptable to 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.  

5.2.7       
A certification of Seller’s non-foreign status pursuant to
Section 1445 of the Internal Revenue Code of 1986, as amended.

5.2.8       
Resolutions, certificates of good standing, and such other organizational
documents as Title Insurer shall reasonably require evidencing Seller’s
authority to consummate this transaction.

5.2.9       
An updated Rent Roll effective as of a date no more than 3 Business Days
prior to the Closing Date; provided, however, that the content of such updated
Rent Roll shall in no event expand or modify the conditions to Purchaser’s
obligation to close as specified under Section 8.1.  

5.2.10    Such notices,
transfer disclosures, affidavits or other similar documents that are required by
applicable laws to be executed by Seller or otherwise reasonably necessary in
order to consummate the transactions contemplated under terms of the
Contract.

5.3             
Purchaser Closing Deliveries.  Except for:
(i) the closing statement which shall be delivered on or before the Closing
Date, and (ii) the balance of the Purchase Price which is to be delivered
at the time specified in Section 2.2.4, Purchaser shall deliver to Escrow
Agent, each of the following items no later than 1 Business Day prior to the
Closing Date:

5.3.1       
The full Purchase Price (with credit for the Deposit and, if applicable,
the Loan Balance), plus or minus the adjustments or prorations required by this
Contract.

5.3.2       
Purchaser’s counterpart signature to the closing statement prepared by
Title Insurer.

5.3.3       
A countersigned counterpart of the General Assignment.

5.3.4       
A countersigned counterpart of the Leases Assignment.

5.3.5       
Notification letters to all Tenants prepared and executed by Purchaser in
the form attached hereto as Exhibit G, which shall be delivered to
all Tenants by Purchaser immediately after Closing.  

5.3.6       
Any cancellation fees or penalties due to any vendor under any Terminated
Contract as a result of the termination thereof.

5.3.7       
Resolutions, certificates of good standing, and such other organizational
documents as Title Insurer shall reasonably require evidencing Purchaser’s
authority to consummate this transaction.

5.3.8       
If Purchaser elects to cause and the Lender has agreed to permit the Loan
Assumption and Release, all documents, instruments, guaranties, Lender Fees,
Required Loan Fund Amounts, and other items or funds reasonably required by the
Lender to cause the Loan Assumption and Release.

5.3.9       
Such notices, transfer disclosures, affidavits or other similar documents
that are required by applicable law to be executed by Purchaser or otherwise
reasonably necessary in order to consummate the transactions contemplated under
this Contract.

5.4             
Closing Prorations and Adjustments.  

5.4.1       
General.  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, Seller being charged or credited, as appropriate, for all of same
attributable to the period up to the Closing Date (and credited for any amounts
paid by 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.  Seller shall prepare a proration schedule (the “Proration Schedule”)
of the adjustments described in this Section 5.4 prior to Closing and shall use good
faith efforts to deliver such Proration Schedule to Purchaser for Purchaser’s
approval 2 Business Days prior to Closing.  

5.4.2       
Operating Expenses.  All of the operating,
maintenance, taxes (other than real estate taxes), and other expenses incurred
in operating the Property that Seller customarily pays, and any other costs
incurred in the ordinary course of business for the management and operation of
the Property, shall be prorated on an accrual basis.  Seller shall pay all
such expenses that accrue prior to the Closing Date and Purchaser shall pay all
such expenses that accrue from and after the Closing Date.

5.4.3       
Utilities.  The final readings and final billings for
utilities will be made if possible as of the Closing Date, in which case 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.  Seller
shall be entitled to the return of any deposit(s) posted by it with any utility
company, and Seller shall notify each utility company serving the Property to
terminate Seller’s account or transfer Seller’s account to Purchaser’s name,
effective as of noon on the Closing Date.  Seller shall have no
responsibility or liability for Purchaser’s failure to arrange utility service
for the Property as of the Closing Date.  Purchaser shall indemnify, hold
harmless and, if requested by Seller (in Seller’s sole discretion), defend (with
counsel approved by Seller) Seller’s Indemnified Parties from and against any
and all Losses arising from or related to Purchaser’s failure to arrange utility
service as of the Closing Date.

5.4.4       
Real Estate Taxes.  Any real estate ad valorem or
similar taxes for the 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 the Property
or for the tax rate) for the year of Closing are not available at the Closing
Date, 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           
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 the 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.  Seller shall receive all collected rent and income attributable to dates prior to the Closing
Date.  In addition, if Purchaser elects to terminate any utility rebilling
contract associated with the Property, then Seller shall receive a credit at
Closing equal to the average of the amount of the monthly utility bill
associated with the Property for the preceding 12 months, multiplied by 3. 
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 Seller’s favor for rents which have accrued and are unpaid as of the
Closing, but Purchaser shall pay Seller such accrued Uncollected Rents as and
when collected by Purchaser.  For a period of 180 days following Closing,
Purchaser agrees to bill Tenants of the Property for all Uncollected Rents and
to take reasonable actions (which shall not include an obligation to commence
legal action) to collect Uncollected Rents.  Notwithstanding the foregoing,
Purchaser’s obligation to collect Uncollected Rents shall be limited to
Uncollected Rents of not more than 90 days past due, and Purchaser’s collection
of rents shall be applied, first, towards current rent due and owing under the
Leases, second, to Purchaser’s reasonable third-party costs of such collection,
and third to Uncollected Rents.  After the Closing, Seller shall continue
to have the right, but not the obligation, in its own name, to demand payment of
and to collect Uncollected Rents owed to 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 Seller of such right; provided however, that the
foregoing right of Seller shall be limited to actions seeking monetary damages
and, in no event, shall Seller seek to evict any Tenants in any action to
collect Uncollected Rents.  Purchaser agrees to reasonably cooperate with
Seller, at no cost or expense to Purchaser, in connection with all efforts by
Seller to collect such Uncollected Rents and to take all steps, whether before
or after the Closing Date, as may be reasonably necessary to carry out the
intention of the foregoing; provided, however, that Purchaser’s obligation to
cooperate with Seller pursuant to this sentence shall not obligate Purchaser to
terminate any Tenant lease with an existing Tenant or evict any existing Tenant
from the Property.

5.4.6.2           
At Closing, Purchaser shall receive a credit against the 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 law (the “Tenant Security Deposit
Balance”).  Any cash (or cash equivalents) held by Seller which
constitutes the Tenant Security Deposit Balance shall be retained by Seller in
exchange for the foregoing credit against the Purchase Price and shall not be
transferred by 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 to the extent of such
credit.  The Tenant Security Deposit Balance shall not include any
non-refundable deposits or fees paid by Tenants to Seller, either pursuant to
the Leases or otherwise.

5.4.7       
Existing Loan.  Seller shall be responsible for all
principal required to be paid under the terms of the Note prior to Closing,
together with all interest accrued, and any late charges or other amounts
actually due and payable, under the Note prior to Closing, all of which may be a credit against the Purchase Price as provided in
Section 2.2.3. 
Purchaser shall be responsible for the payment of all principal required to be
paid from and after Closing, together with all interest accruing under the Note
from and after Closing.  Purchaser shall also be responsible for all Lender
Fees and all other fees, penalties, interest and other amounts due and owing
from and after Closing under the Assumed Loan Documents as a result of the Loan
Assumption and Release.  As set forth in Section 4.5.3, any existing reserves, impounds
and other accounts maintained in connection with the Loan shall be assigned to
Purchaser, and at Closing, Purchaser shall pay to Seller an amount equal to the
balance of such reserves, impounds and accounts so assigned. 

5.4.8       
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 Property until 11:59
p.m. the day prior to Closing Date (“Risk of Loss Transfer”),
after which time the risk of loss shall pass to Purchaser and Purchaser shall be
responsible for obtaining its own insurance thereafter.

5.4.9       
Employees.  All of Seller’s and Seller’s manager’s
on-site employees shall have their employment at the Property terminated as of
the Closing Date and Purchaser shall have no obligation to employ such employees
on or after the Closing Date.

5.4.10    Closing
Costs.  Purchaser shall pay any transfer tax, any premiums or fees
required to be paid by Purchaser with respect to the Title Policy pursuant to
Section 4.1, and one-half of
the customary closing costs of the Escrow Agent.  Seller shall pay the base
premium for the Title Policy to the extent required by Section 4.1, the cost of recording any instruments
required to discharge any liens or encumbrances against the Property not caused
by Purchaser’s actions, and one-half of the customary closing costs of the
Escrow Agent.  

5.4.11   
Intentionally omitted.  

5.4.12   
Possession.  Possession of the 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 5.2.10. 
To the extent reasonably available to Seller, originals or copies of the Leases
and Property Contracts, lease files, warranties, guaranties, operating manuals,
keys to the property, security codes, alarm codes and Seller’s books and records
(other than proprietary information) (collectively, “Seller’s
Property-Related Files and Records”) regarding the Property shall be
made available to Purchaser at the Property after the Closing.  Purchaser
agrees, for a period of not less than three (3) years after the Closing (the
“Records Hold Period”), to (a) provide and allow Seller
reasonable access to Seller’s Property-Related Files and Records for purposes of
inspection and copying thereof at Seller’s expense, 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 Seller’s
Property-Related Files and Records, Purchaser must first provide Seller prior
written notice (the “Records Disposal Notice”).  Seller shall
have a period of 30 days after receipt of the Records Disposal Notice to enter
the 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 Seller
desires to retain.  

5.5             
Post Closing Adjustments.  Purchaser or Seller may
request that Purchaser and 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 in which event the
parties shall promptly do so based on the most recent information available;
provided, however, that neither party shall have any obligation to re-adjust any
items (a) after the expiration of 60 days after Closing, or
(b) subject to such 60-day period, unless such items exceed $5,000.00 in
the aggregate.  

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, Seller 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       
Seller is validly existing and in good standing under the laws of the
state of its formation set forth in the initial paragraph of this Contract; and,
subject to any approvals required from Lender for the Loan Assumption and
Release, has or at the Closing shall have the entity power and authority to sell
and convey the Property and to execute the documents to be executed by 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 Seller is a party or by which Seller is otherwise
bound, which conflict, breach or default would have a material adverse affect on
Seller’s ability to consummate the transaction contemplated by this Contract or
on the Property.  This Contract is a valid and binding agreement against
Seller in accordance with its terms;

6.1.2       
Seller is not a “foreign person,” as that term is used and defined in the
Internal Revenue Code, Section 1445, as amended;

6.1.3       
Except for (a) any actions by Seller to evict Tenants under the
Leases, or (b) any matter covered by Seller’s current insurance
policy(ies), to Seller’s knowledge, there are no material actions, proceedings,
litigation or governmental investigations or condemnation actions either pending
or threatened in writing against the Property which will adversely impact
Seller’s ability to convey the Property or the value, use or operation of the
Property;

6.1.4       
To Seller’s knowledge, Seller has not received any written notice of any
material default by Seller under any of the Property Contracts and HAP Tenant
Based Voucher Contracts that will not be terminated on the Closing Date;

6.1.5       
To Seller’s knowledge, the Rent Roll (as updated pursuant to
Section 5.2.9) is accurate
in all material respects; 

6.1.6       
To Seller’s knowledge, the Property Contracts List is accurate in all
material respects;

6.1.7       
To Seller’s knowledge, there exists no material default under the Assumed
Loan Documents; 

6.1.8       
To Seller’s knowledge, Seller has delivered to Purchaser copies of all
HAP Tenant Based Voucher Contracts affecting the Property; 

6.1.9       
To Seller’s knowledge, Seller has delivered to Purchaser copies of all
Utility Contracts affecting the Property; 

6.1.10    To Seller’s
knowledge, there exist no material default under the Assumed Loan
Documents;

6.1.11    The financial
statements delivered or made available to Purchaser are the financial statements
used by Seller in the day to day management and operation of the
Property;

6.1.12    Seller has
delivered or made available to Purchaser true and correct copies of the
Materials, Leases, Property Contracts, HAP Tenant Based Voucher Contracts and
Assumed Loan Documents which Seller has in its possession or control;

6.1.13    Seller is not a
Prohibited Person;

6.1.14    To Seller’s
knowledge, except for third-party persons who hold direct or indirect ownership
interests in Seller, none of Seller’s affiliates or parent entities is a
Prohibited Person; 

6.1.15    To Seller’s
knowledge, except for third-party persons who hold direct or indirect ownership
interests in Seller, the Property is not the property of or beneficially owned
by a Prohibited Person;

6.1.16    To Seller’s
knowledge, except for third-party persons who hold direct or indirect ownership
interests in Seller, the Property is not the proceeds of specified unlawful
activity as defined by 18 U.S.C. §1956(c)(7);

6.1.17    To Seller’s
knowledge: (A) no hazardous or toxic materials or other substances
regulated by applicable federal or state environmental laws are stored by Seller
on, in or under the Property in quantities which violate applicable laws
governing such materials or substances, and (B) the Property is not used by
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; and

6.1.18    To Seller’s
knowledge, Sell has not received written notice from any governmental agency of
any uncured material violation of any federal, state, county or municipal law,
ordinance, order, regulation or requirement affecting the Property.

6.2             
AS-IS.  Except as otherwise expressly set forth in
Seller’s Representations:

6.2.1       
The Property is expressly purchased and sold “AS IS,” “WHERE IS,” and
“WITH ALL FAULTS.”  

6.2.2       
The Purchase Price 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
Seller or Broker or statements, representations or warranties, express or
implied, made by or enforceable directly against Seller or Broker, including,
without limitation, any relating to the value of the Property, the physical or
environmental condition of the Property, any state, federal, county or local
law, ordinance, order or permit; or the suitability, compliance or lack of
compliance of the Property with any regulation, or any other attribute or matter
of or relating to the Property (other than any covenants of title contained in
the Deed conveying the Property and Seller’s Representations).  Purchaser
agrees that Seller shall not be responsible or liable to Purchaser for any
defects, errors or omissions in the Materials, or on account of any conditions
affecting the Property.  

6.2.3       
Except for Seller’s fraud or intentional misrepresentation or a breach by
Seller of the representations, warranties and covenants contained in this
Contract, Purchaser, its successors and assigns, and anyone claiming by, through
or under Purchaser, hereby fully releases 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 Seller’s
Indemnified Parties with respect to any and all Losses arising from or related
to any defects, errors, omissions in the Materials or other conditions affecting
the Property.  

6.2.4       
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
Property), reports, investigations and inspections as it deems appropriate in
connection with the Property.  If Seller  provides or has provided any
documents, summaries, opinions or work product of consultants, surveyors,
architects, engineers, title companies, governmental authorities or any other
person or entity with respect to the Property, including, without limitation,
the offering prepared by Broker, Purchaser and Seller agree that Seller has done
so or shall do so only for the convenience of both 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 Seller’s Indemnified Parties.  Purchaser acknowledges and agrees
that no representation has been made and no responsibility is assumed by Seller
with respect to current and future applicable zoning or building code
requirements or the compliance of the Property with any other laws, rules,
ordinances or regulations, the financial earning capacity or expense history of
the Property, the continuation of contracts, continued occupancy levels of the Property, or any part thereof, or the
continued occupancy by tenants of any Leases or, without limiting any of the
foregoing, occupancy at Closing.  

6.2.5       
Prior to Closing, Seller shall have the right, but not the obligation, to
enforce its rights against any and all Property occupants, guests or
tenants.  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 Deed with or without such
tenants in possession and without any allowance or reduction in the Purchase
Price under this Contract.  

6.2.6       
Purchaser hereby releases Seller from any and all claims and liabilities
relating to the matters set forth in this Section.  

6.3             
Survival of Seller’s Representations.  Seller and
Purchaser agree that Seller’s Representations shall survive Closing for a period
of 9 months (the “Survival Period”).  Seller shall have no
liability after the Survival Period with respect to Seller’s Representations
contained herein except to the extent that Purchaser has delivered notice to
Seller during the Survival Period for breach of any of Seller’s
Representations.  Under no circumstances shall Seller be liable to
Purchaser for more than $500,000 in any individual instance or in the aggregate
for all breaches of Seller’s Representations, nor shall Purchaser 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
exceeds $5,000.  In the event that 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 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 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
Regional Property Manager and the Community Manager and shall not be construed
to refer to the knowledge of any other partner, officer, director, agent,
employee or representative of Seller, or any affiliate of Seller, or to impose
upon such Regional Property Manager and Community Manager any duty to
investigate the matter to which such actual knowledge or the absence thereof
pertains, or to impose upon such Regional Property Manager and Community Manager
any individual personal liability.  As used herein, the term
“Regional Property Manager” shall refer to Carlene DesJardin who
is the regional property manager handling this Property and the term
“Community Manager” shall refer to Shaya Johnston who is the
community manager handling this Property.  

6.5             
Representations and Warranties of Purchaser.  For the
purpose of inducing Seller to enter into this Contract and to consummate the
sale and purchase of the Property in accordance herewith, Purchaser represents
and warrants to Seller the following as of the Effective Date and as of the
Closing Date:

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 Seller.

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

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 the
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       
To Purchaser’s knowledge after reasonable inquiry, the funds or other
assets Purchaser will transfer to Seller under this Contract are not the
property of, or beneficially owned, directly or indirectly, by a Prohibited
Person. 

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

6.5.10    Any
representations and warranties made “to Purchaser’s knowledge” or “to the
knowledge of Purchaser” shall not be deemed to imply any duty of inquiry or
investigation on behalf of Purchaser.

Article VII
OPERATION OF THE
PROPERTY

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 Seller may 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, Seller
agrees that, without the prior written consent of Purchaser, which consent shall
not be unreasonably withheld, conditioned or delayed, any new or renewed Leases
shall not have a term in excess of 1 year and any new Property Contract shall be
terminable upon 30 days notice without penalty.  Seller will provide
Purchaser with copies of any new or modified Property Contracts within a
reasonable time after executing the same.

7.2             
General Operation of Property.  Except as specifically
set forth in this Article VII,
Seller shall operate the Property after the Effective Date in the ordinary
course of business, and except as necessary in Seller’s sole discretion to
address (a) any life or safety issue at the Property or (b) any other
matter which in Seller’s reasonable discretion materially adversely affects the
use, operation or value of the Property, Seller will not make any material
alterations to the Property or remove any material Fixtures and Tangible
Personal Property without the prior written consent of Purchaser which consent
shall not be unreasonably withheld, denied or delayed.

7.3          
Liens.  Other than utility easements and temporary
construction easements granted by Seller in the ordinary course of business,
Seller covenants that it will not voluntarily create or cause any lien or
encumbrance to attach to the Property between the Effective Date and the Closing
Date (other than Leases and Property Contracts as provided in
Section 7.1) unless
Purchaser approves such lien or encumbrance, which approval shall not be
unreasonably withheld, conditioned or delayed.  If Purchaser approves any
such subsequent lien or encumbrance, the same shall be deemed a Permitted
Encumbrance for all purposes hereunder.  During the period from the
Effective Date to the Closing Date, Seller shall continue to perform and comply
with all requirements of the Assumed Loan Documents, shall not modify or amend
the Assumed Loan Documents without Purchaser’s prior written consent and shall
promptly notify Purchaser of any material written notice that Seller has
knowledge of receiving from the Lender with respect to the Assumed Loan
Documents.

7.4             
Rent Ready Condition.  Seller agrees that at the
Closing (a) Seller will deliver to Purchaser the same number (or less) of
Tenant Units which were vacant and not in Rent-Ready Condition on the date that
the Feasibility Period expired, or (b) Purchaser shall receive a credit
against the Purchase Price in an amount equal to the product of (i) the
number of additional Tenant Units 5 days prior to Closing that are vacant and
not in Rent-Ready Condition in excess of the number of Tenant Units that were
vacant and not in Rent-Ready Condition on the date that the Feasibility Period
expired, and (ii) $500.00.

Article
VIII
CONDITIONS PRECEDENT TO CLOSING

8.1             
Purchaser’s Conditions to Closing.  Purchaser’s
obligation to close under this Contract shall be subject to and conditioned upon
the fulfillment of the following conditions precedent:

8.1.1       
All of the documents required to be delivered by Seller 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       
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 Seller hereunder; 

8.1.4       
Neither Seller nor Seller’s manager shall be a debtor in any bankruptcy
proceeding; 

8.1.5       
Lender shall have approved the Loan Assumption and Release; and

8.1.6   
There shall not be any pending litigation or, to the knowledge of either
Purchaser or Seller, any litigation threatened in writing, 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.

Notwithstanding
anything to the contrary, there are no other conditions to Purchaser’s
obligation to Close except as expressly set forth in Article III, Article IV,
Article XI and this Section 8.1.  If any condition set forth in
this Section 8.1 is not met,
Purchaser may (a) waive in writing any of the foregoing conditions and
proceed to Closing on the Closing Date with no offset or deduction from the
Purchase Price, (b) terminate this Contract and receive a return of the
Deposit from the Escrow Agent, or (c) if such failure constitutes a default
by Seller of its representations, warranties or covenants hereunder, exercise
any of its remedies pursuant to Section 10.2.  Notwithstanding the
foregoing, if any condition set forth in this Section 8.1 is not met, and Purchaser proceeds to
Closing on the Closing Date, Purchaser shall be deemed to have waived the
foregoing conditions.

8.2             
Seller’s Conditions to Closing.  Without limiting any
of the rights of Seller elsewhere provided for in this Contract, Seller’s
obligation to close with respect to conveyance of the 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 and warranties 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       
Neither Purchaser nor Purchaser’s manager shall be a debtor in any
bankruptcy proceeding;

8.2.5       
Intentionally deleted.

8.2.6       
There shall not be any pending litigation or, to the knowledge of either
Purchaser or Seller, any litigation threatened in writing, 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; and

8.2.7       
The Loan Assumption and Release shall have occurred.

If
any of the foregoing conditions to Seller’s obligations to close with respect to
the conveyance of the Property under this Contract are not met, Seller may
(a) waive any of the foregoing conditions and proceed to Closing on the
Closing Date, (b) terminate this Contract, or (c) if such failure
constitutes a default by Purchaser, exercise any of its remedies pursuant to
Section 10.1.

Article
IX
BROKERAGE

9.1             
Indemnity.  Seller represents and warrants to
Purchaser that it has dealt only with Cushman & Wakefield of Colorado, Inc.,
1050 17th Street, Suite 1400, Denver, Colorado 80265
(“Broker”) in connection with this Contract.  Seller and
Purchaser each represents and warrants to the other that, other than 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 Closing occurs, Seller agrees
to pay Broker a commission according to the terms of a separate contract. 
Broker shall not be deemed a party or third party beneficiary of this
Contract.  As a condition to Seller’s obligation to pay the commission,
Broker shall execute the signature page for Broker attached hereto solely for
purposes of confirming the matters set forth therein.

Article
X
DEFAULTS AND REMEDIES

10.1         
Purchaser Default.  If Purchaser defaults on its
obligations hereunder to (a) deliver the Initial Deposit or Additional
Deposit (or any other deposit or payment required of Purchaser hereunder),
(b) deliver to Seller the deliveries specified under
Section 5.2.10 on the
date required thereunder, or (c) deliver the Purchase Price in accordance
with Article II and close on the purchase of the Property
on the Closing Date, then, immediately and without the right to receive notice
or to cure pursuant to Section 2.2.3, Purchaser shall forfeit the
Deposit, and the Escrow Agent shall deliver the Deposit to Seller, and neither
party shall be obligated to proceed with the purchase and sale of the
Property.  If Purchaser defaults on any of its other representations,
warranties or obligations under this Contract, and such default continues for
more than 10 days after written notice from Seller, then Purchaser shall forfeit
the Deposit, and the Escrow Agent shall deliver the Deposit to Seller, 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,
Seller’s sole and exclusive remedy for Purchaser’s failure to perform its
obligation to purchase the Property or breach of a representation or
warranty.  Seller expressly waives the remedies of specific performance and
additional damages for such default by Purchaser.  SELLER AND PURCHASER
ACKNOWLEDGE THAT SELLER’S DAMAGES WOULD BE DIFFICULT TO DETERMINE, AND THAT THE
DEPOSIT IS A REASONABLE ESTIMATE OF SELLER’S DAMAGES RESULTING FROM A DEFAULT BY
PURCHASER IN ITS OBLIGATION TO PURCHASE THE PROPERTY.  SELLER AND PURCHASER
FURTHER AGREE THAT THIS SECTION 10.1 IS INTENDED TO AND DOES LIQUIDATE
THE AMOUNT OF DAMAGES DUE SELLER, AND SHALL BE SELLER’S 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.

10.2         
Seller Default.  If Seller (i) defaults on its
obligations hereunder to deliver to Escrow Agent the deliveries specified under
Section 5.2 on the date
required thereunder, or to close on the sale of the Property on the Closing
Date, or (ii) prior to the Closing defaults on its covenants or obligations
under this Contract and such default continues for more than 10 days after
written notice from Purchaser, then, at Purchaser’s election and as Purchaser’s
exclusive remedy, Purchaser may either (a) terminate this Contract, and all
payments and things of value, including the Deposit, provided by Purchaser
hereunder shall be returned to Purchaser and Purchaser may recover, as its sole
recoverable damages (but without limiting its right to receive a refund of the
Deposit), its direct and actual out-of-pocket expenses and costs (documented by
paid invoices to third parties) in connection with this transaction (including,
but not limited to, the Loan Assumption and Release), which damages shall not
exceed $100,000 in the aggregate, or (b) subject to the conditions below,
seek specific performance of Seller’s obligation to close on the sale of the
Property pursuant to this Contract (but not damages).  Purchaser may seek
specific performance of Seller’s obligation to close on the sale of the Property
pursuant to this Contract only if, as a condition precedent to initiating such
litigation for specific performance, Purchaser shall (x) not otherwise be
in default under this Contract; and (y) file suit therefor with the court
on or before the 90th day after the Closing Date.  If Purchaser fails to
file an action for specific performance within 90 days after the Closing Date,
then Purchaser shall be deemed to have elected to terminate the Contract in
accordance with subsection (a) above.  Purchaser agrees that it shall
promptly deliver to 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 Seller pursuant to the foregoing sentence without representation or warranty
of any kind with respect to such items.  SELLER 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 SELLER, BOTH AT LAW AND IN EQUITY
ARISING FROM OR RELATED TO A BREACH BY SELLER OF ITS 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 SELLER FOR ANY BREACH BY SELLER, OF ITS COVENANTS OR
ITS OBLIGATIONS UNDER THIS CONTRACT.  PURCHASER SPECIFICALLY WAIVES THE
RIGHT TO FILE ANY LIS PENDENS OR ANY LIEN AGAINST THE 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 the Property is
damaged or destroyed by fire or other casualty prior to Risk of Loss Transfer,
and the cost for demolition, site cleaning, restoration, replacement, or other
repairs (collectively, the “Repairs”) is more than $750,000.00 (a
“Major Damage”), then Seller shall have no obligation to make such
Repairs, and shall notify Purchaser in writing of such damage or destruction
(the “Damage Notice”).  If there is a Major Damage, then
Purchaser may elect, by delivering written notice to Seller on or before the
earlier of (x) Closing and (y) the date which is ten (10) days after
Purchaser’s receipt of the Damage Notice, to terminate this Contract, in which
event the Deposit shall be returned to Purchaser.  In the event Purchaser
fails to timely terminate this Contract pursuant to this Section 11.1, this transaction shall be closed in
accordance with Section 11.3
below.

11.2         
Minor Damage.  In the event that the Property is
damaged or destroyed by fire or other casualty prior to Risk of Loss Transfer,
and the cost of Repairs is equal to or less than $750,000.00, then this
transaction shall be closed in accordance with Section 11.3, notwithstanding such casualty.  In
such event, 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 Seller’s
election to commence such Repairs, or 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 11.1, then
this transaction shall be closed in accordance with the terms of the Contract,
at 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
acceptable to Seller and Purchaser) of 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 Seller
for Repairs (plus a credit against the Purchase Price at Closing in the amount
of any deductible payable by Seller in connection therewith); 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
Seller for Repairs).   Seller represents to Purchaser that Seller has
no self-insured retention liability.

11.4         
Repairs.  To the extent that Seller elects to commence
any Repairs prior to Closing, then 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.  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 Seller in connection with such Repairs; provided, however, that (except
in the event of emergency, as determined in Seller’s sole discretion) Seller
will consult with Purchaser prior to entering into any such contract if
Purchaser will likely have to assume such Contract.  Notwithstanding the
foregoing to the contrary, Seller retains the sole right and authority to enter
into any such contract.  Seller shall not settle any insurance claim
without the prior consent of Purchaser, which consent shall not be unreasonably
withheld or delayed.

Article
XII
EMINENT DOMAIN

12.1         
Eminent Domain.  In the event that, at the time of
Closing, any material part of the Property is (or previously has been) acquired,
or is about to be acquired, 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 terminate
this Contract by giving written notice within 10 days after Purchaser’s receipt
from Seller of notice of the occurrence of such event, and if Purchaser so
terminates this Contract, Purchaser shall recover the Deposit hereunder. 
If Purchaser fails to terminate this Contract within such 10-day period, this
transaction shall be closed in accordance with the terms of this Contract for
the full Purchase Price and Purchaser shall receive the full benefit of any
condemnation award.  Seller shall not settle or compromise any condemnation
without the prior written consent of Purchaser, which consent shall not be
unreasonably withheld.

Article
XIII
MISCELLANEOUS

13.1         
Binding Effect of Contract.  This Contract shall not
be binding on either party until executed by both Purchaser and Seller. 
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 Seller 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 Seller.  Notwithstanding the foregoing, Purchaser may
assign this Contract, without first obtaining the prior written approval of
Seller, 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 Seller of
any proposed assignment no later than 10 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 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:

 

FF
Realty LLC

5510
Morehouse Drive, Suite 200

San
Diego, California  82121

Attention: 
George Lloyd 

Telephone: 
(858) 824-6410

Facsimile: 
(858) 623-7740

Email: 
glloyd@ffres.com 

 

and:

 

FF
Realty LLC
5510 Morehouse Drive, Suite 200
San Diego, California
 82121

Attention: 
Jon MacDonald, General Counsel

Telephone:
(858) 626-8216

Facsimile:
(858) 457-2123

Email: 
jmacdonald@ffres.com

and:

 

FF
Realty LLC

5510
Morehouse Drive, Suite 200

San
Diego, California  82121

Attention: 
Richard Boynton

Telephone: 
(858) 457-2123

Facsimile: 
(858) 623-7740

Email: 
rboynton@ffres.com

 

with
copy to:

 

Rutan
& Tucker, LLP
611 Anton Boulevard, 14th Floor

Costa
Mesa, California  92626

Attention: 
Patrick D. McCalla, Esq.

Telephone: 
(714) 662-4635

Facsimile: 
(714) 546-9035

Email: 
pmccalla@rutan.com

 

To
Seller:

 

c/o
AIMCO

4582
South Ulster Street Parkway 

Suite
1100

Denver,
Colorado  80237

Attention: 
Mark Reoch

Telephone: 
(303) 691-4337

Facsimile: 
(303) 300-3261

Email: 
mark.reoch@aimco.com

 

and:

 

Apartment
Lodge 17A LLC

c/o
AIMCO

4582
South Ulster Street Parkway 

Suite
1100

Denver,
Colorado  80237

Attention: 
John Bezzant 

Telephone: 
(303) 691-4344

Facsimile: 
(303) 300-3282

Email: 
john.bezzant@aimco.com

 

with
copy to:

 

AIMCO

4582
South Ulster Street Parkway 

Suite
1100

Denver,
Colorado  80237

Attention: 
Trent Johnson, Esq.

Telephone:
 (303) 691-4348

Facsimile: 
(720) 300-3260

Email: 
trent.johnson@aimco.com

 

AIMCO

4582
South Ulster Street Parkway 

Suite
1100

Denver,
Colorado  80237

Attention: 
Ken Diamond, Esq.

Telephone: 
(303) 793-4763

Facsimile: 
(303) 200-6881

Email: 
ken.diamond@aimco.com

 

and
a copy to:

 

Cushman
& Wakefield of Colorado, Inc.

1050
17th Street, Suite 1400
Denver, Colorado  80265

Attention: 
Pat Stucker

Telephone: 
(303) 813-6407

Facsimile: 
(303) 813-6499

Email: 
pat.stucker@cushwake.com

 

and a copy to:

 

Kutak
Rock LLP

1801
California Street, Suite 3100

Denver,
Colorado  80202

Attention: 
William S. Martin, Esq. 

Telephone:
 (303) 297-2400

Facsimile:
 (303) 292-7799

Email: 
william.martin@kutakrock.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: 
(713) 625-8161

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.  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 in which the Property 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
contracts, 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.  In the event that 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.  Seller and Purchaser shall not
disclose the terms and conditions contained in this Contract and shall keep the
same confidential, provided that each 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 its lenders,
attorneys and accountants.  Any information obtained by Purchaser in the
course of its inspection of the Property, and any Materials provided by Seller
to Purchaser hereunder, shall be confidential and, unless and until the Closing
occurs, Purchaser shall be prohibited from making such information public to any
other person or entity other than its Consultants, without Seller’s prior
written authorization, which may be granted or denied in Seller’s sole
discretion.  In addition, each party shall use its reasonable efforts to
prevent its Consultants from divulging any such confidential information to any
unrelated third parties except for the limited purpose of analyzing and
investigating such information for the purpose of consummating the transaction
contemplated by this Contract.  Unless and until the Closing occurs,
Purchaser shall not market the Property (or any portion thereof) to any
prospective purchaser or lessee without the prior written consent of Seller,
which consent may be withheld in Seller’s sole discretion.

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 substantially 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
Property is located.  (For example, a reference to 3:00 p.m. refers to 3:00 p.m. MST if the Property is located
in Denver, Colorado.)  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     
Intentionally omitted.

13.19     
No Personal Liability of Officers, Trustees or
Directors.  Purchaser acknowledges that this Contract is entered
into by Seller which is a Colorado limited liability company, and Purchaser
agrees that none of 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.  Seller acknowledges that this
Contract is entered into by Purchaser which is a Delaware limited liability
company, and Seller agrees that none of Purchaser, or Purchaser’s partners,
managers, members, employees, officers, directors, trustees, shareholders,
counsel, representatives, or agents shall have any personal liability under this
Contract or any document executed in connection with the transactions
contemplated by this Contract.

13.20     
ADA Disclosure.  Purchaser
acknowledges that the Property may be subject to the federal Americans With
Disabilities Act (the “ADA”) and the federal Fair Housing Act (the
“FHA”).  The ADA requires, among other matters, that tenants
and/or owners of “public accommodations” remove barriers in order to make the
Property accessible to disabled persons and provide auxiliary aids and services
for hearing, vision or speech impaired persons.  Seller makes no warranty,
representation or guarantee of any type or kind with respect to the Property’s
compliance with the ADA or the FHA (or any similar state or local law), and
Seller expressly disclaims any such representations.

13.21     
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 Seller’s
prior written consent, which consent may be withheld at Seller’s sole
discretion.  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 Seller 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.

13.22     
Relationship of Parties.  Purchaser and Seller
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 Seller is, nor shall either hold itself
out to be, the agent, employee, joint venturer or partner of the other
party.

13.23     
AIMCO Marks.  Purchaser agrees that Seller, 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.

13.24     
Non-Solicitation of Employees.  Prior to the
expiration of the Feasibility Period, Purchaser acknowledges and agrees that,
without the express written consent of Seller, neither Purchaser nor any of
Purchaser’s employees, affiliates or agents shall solicit any of Seller’s
employees or any employees located at the Property (or any of Seller’s
affiliates’ employees located at any property owned by such affiliates) for
potential employment.

13.25     
Survival.  Except for (a) all of the provisions
of this Article XIII (other than Section 13.18); (b) Sections 2.3, 3.3, 3.4, 3.5, 4.4, 4.5.5, 4.5.6, 4.8, 5.4, 5.5, 6.2, 6.3, 6.5, 9.1, 11.3, 11.4, 12.1 and 14.2; (c) any other provisions in
this Contract, that by their express terms survive the termination of this
Contract or the Closing; and (d) any payment or indemnity 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. 

13.26     
Multiple Purchasers.  As used in this Contract, the
term “Purchaser” includes all entities acquiring any interest in
the Property 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.  

13.27     
WAIVER OF JURY TRIAL.  THE PARTIES HERETO WAIVE TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY AGAINST ANY
OTHER PARTY ON ANY MATER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS
CONTRACT.

Article
XIV
LEAD–BASED PAINT DISCLOSURE

14.1         
Disclosure.  Seller and Purchaser hereby acknowledge
delivery of the Lead Based Paint Disclosure attached as Exhibit H
hereto.  

14.2         
Consent Agreement.

           
Testing (the “Testing”) has been performed at the Property with
respect to lead-based paint.  Law Engineering and Environmental Services,
Inc. performed the Testing and reported its findings in the Multifamily:
Component Type Report dated May 14, 2001, a copy of which has been provided to
Purchaser (the “Report”).  The Report certifies the Property
as lead-based paint free.  By execution hereof, Purchaser acknowledges
receipt of a copy of the Report, the Lead-Based Paint Disclosure Statement
attached hereto as Exhibit H, and acknowledges receipt of that
certain Consent Agreement (the “Consent Agreement”) by and among
the United States Environmental Protection Agency (executed December 19, 2001),
the United States Department of Housing and Urban Development (executed January
2, 2002), and AIMCO (executed December 18, 2001).  Because the Property has
been certified as lead-based paint free, Seller is not
required under the Consent Agreement to remediate or abate any lead-based paint
condition at the Property prior to the Closing.    

 

[Remainder of Page Intentionally Left Blank]

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

 

Seller:

 

APARTMENT
LODGE 17A LLC, 

a
Colorado limited liability company

 

By:
FOX PARTNERS, 

a
California general partnership, 

its
manager

 

By:
FOX CAPITAL MANAGEMENT CORPORATION, 

a
California corporation, 

its
managing general partner

 

 

By: 
/s/John Bezzant

Name: 
John Bezzant

Title: 
Executive Vice President

 

 

Purchaser:

 

FF
REALTY LLC,

a
Delaware limited liability company

 

By: 
/s/Jon A. MacDonald

Name: 
Jon A. MacDonald

Title: 
General Counselex10.1

 

EXHIBIT 10.1
 
SUNPOWER CORPORATION
FORM OF RETENTION AGREEMENT
This Retention Agreement (this “Agreement”) is entered into by and between SunPower Corporation, a Delaware corporation (the “Company”), and [name] (“Executive” and, together with the Company, the “Parties”), effective as of and contingent upon the Offer Closing (as defined below).
WHEREAS, Executive and the Company have entered into an Employment Agreement as of [August 28, 2008] (the “Employment Agreement”).
WHEREAS, the Company and Total Gas & Power USA S.A.S., a French société par actions simplifiée (the “Acquiror”), expect to enter into a Tender Offer Agreement (the “Tender Offer Agreement”).
WHEREAS, upon the “Offer Closing” (as defined in the Tender Offer Agreement), Acquiror will acquire a certain percentage of the outstanding shares of the Company's Class A Common Stock and the Company's Class B Common Stock pursuant to the terms of the Tender Offer Agreement, and such purchase will be considered a “Change of Control” as defined in the Employment Agreement.
WHEREAS, Executive and the Company desire to acknowledge and agree that the Offer Closing will not impact Executive's and the Company's respective rights and obligations under the Employment Agreement, except as provided in this Agreement.
NOW THEREFORE, in consideration of the promises made herein and contingent upon the Offer Closing, the Parties hereby agree as follows:
1.Continuation of Employment Agreement.  The Parties hereby agree that, as of the Offer Closing, Executive's and the Company's respective rights and obligations under the Employment Agreement shall remain in effect in the same manner and to the same extent as applied prior to the Offer Closing, except to the extent modified herein.  The Company further agrees that it will not provide a notice of non-renewal to Executive pursuant to Section 3 of the Employment Agreement to terminate such agreement at the end of its “initial term” within the meaning of Section 3 therein.
2.Extension of Severance Protection.  The Parties hereby agree that Section 10(g) in the Employment Agreement (definition of “In Connection with a Change of Control”) is hereby amended to replace the reference to “twenty-four (24)” therein and insert “thirty-six (36)” in lieu thereof.  For the avoidance of doubt, it is the Parties' intent that, if Executive incurs a termination without “Cause” (as such term is defined in the Employment Agreement) or a termination for “Good Reason” (as such term is defined in the Employment Agreement) at any time during the thirty-six
 

 

 

(36) month period following the Offer Closing, Executive shall become entitled to the severance benefits described in the Employment Agreement, subject to the requirements set forth therein.
3.Term of Employment.  The Parties hereby agree that the terms and conditions of Executive's employment with the Company shall, on and after the Offer Closing, continue to be subject to all of the same terms and conditions which existed prior to the Offer Closing except as expressly provided herein.  In particular, the Parties agree that Executive shall have the same base salary, bonus opportunity, work location, position and duties with the Company as existed prior to the Offer Closing, subject to any such changes and/or revisions to any terms and conditions of employment which Executive has agreed to in writing with the Company prior to the Offer Closing. 
4.Acknowledgement of No Good Reason.  Executive hereby acknowledges and agrees that the acquisition of Company stock by the Acquiror and the subsequent continuation without any material reduction of the terms and conditions of Executive's employment specified in Section 3 of this Agreement does not constitute grounds for a termination for “Good Reason,” as defined in Section 10(f) of the Employment Agreement.  The Parties hereby acknowledge and agree that Executive has not agreed to waive the right, at any time within the thirty-six (36) month period following the Offer Closing, to voluntarily resign for “Good Reason” (as any such event is defined in the Employment Agreement) so as to become eligible for the change of control severance benefits provided in the Employment Agreement, subject to the terms set forth in the Employment Agreement.
5.Equity Grant.  In consideration of Executive's acknowledgments and agreements contained herein, the Company shall, contingent on the Offer Closing and promptly following the Offer Closing, grant Executive [########] restricted stock units (“Company RSUs”) which shall be subject to the terms and conditions of the Company's Second Amended and Restated 2005 Stock Incentive Plan (the “Plan”) and a form of Company RSU agreement to be mutually agreed upon between the Company and the Acquiror.  The Company RSUs shall vest as to one-third (1/3rd) of the Company RSUs subject to such award on each of the first three (3) anniversaries of the Offer Closing, subject to Executive remaining employed with the Company on each applicable vesting date.  
6.Change of Control.  The Parties acknowledge that for all purposes of the Employment Agreement, the occurrence of the Offer Closing will constitute a “Change of Control” as defined in the Employment Agreement.  Notwithstanding the foregoing, the Parties agree that the Company RSUs set forth in Section 5 above shall not be subject to any accelerated vesting on account of any termination of Executive's employment without “Cause” or Executive's voluntary resignation for “Good Reason” which occurs during the thirty-six (36) month period after the Offer Closing.  However, should the Company undergo a subsequent “Change of Control” as defined in the Employment Agreement, which does not involve the Acquiror or any of its affiliates, then the Company RSUs will be subject to all the terms and conditions of the Employment Agreement in such transaction, including any vesting acceleration protections therein.     
7.Section 280G.   Notwithstanding anything in this Agreement to the contrary, if any payment or benefit that Executive would receive from the Company or otherwise, including specifically the Company RSUs (each a “Payment”) would (i) constitute a “parachute payment” 

 

within the meaning Section  280G of the Internal Revenue Code of 1986, as amended (“Section 280G”); and (ii) but for this sentence, be subject to the excise tax imposed by Internal Revenue Code Section 4999 (the “Excise Tax”), then such Payment shall be either delivered in full or delivered to such lesser extent, as provided in Section 8(b) of the Employment Agreement.  For purposes of clarity, the Parties agree that this provision will apply to a Change of Control resulting from the Offer Closing as well as any subsequent Change of Control.
8.Terms and Conditions.  Subject to the provisions herein, the terms, conditions, protections and definitions of the Employment Agreement will remain in full force and effect. 
9.Integration.  This Agreement, together with the Employment Agreement, represents the entire agreement and understanding between the Parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral.  This Agreement may be modified only by agreement of the parties by a written instrument executed by the parties that is designated as an amendment to this Agreement.
10.Governing Law.  This Agreement will be governed by the laws of the State of California (with the exception of its conflict of laws provisions).
11.Arbitration.  The Parties agree that any and all disputes arising out of the terms of or relating in any way to this Agreement, their interpretation, and any of the matters herein released, shall be subject to binding arbitration in San Francisco, California before a retired judge then employed by the Judicial Arbitration and Mediation Service (JAMS) under its employment arbitration rules and procedures, supplemented by the California Code of Civil Procedure, and the Company agrees to pay the fees and costs of the arbitrator.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  The Parties hereby agree to waive their right to have any dispute between them resolved in a court of law by a judge or jury.  This paragraph will not prevent either party from seeking preliminary injunctive relief (or any other provisional remedy) in aid of arbitration from any court having jurisdiction over the Parties under applicable state laws.
12.Acknowledgment.  Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from Executive's private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement.
13.Counterparts.  This Agreement may be executed in counterparts, and each counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned.

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.
        
 
 
SUNPOWER CORPORATION
 
 
 
Dated:  _______________, 2011    By ___________________________________________________    
       Name: 
      Title:
    
 
AGREED:
 
 [NAMED EMPLOYEE], an individual
 
 
 
Dated:  _______________, 2011     ___________________________________________________            
 [NAMED EMPLOYEE]

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