Document:

exv10w9

Exhibit 10.9

AMGEN INC.

CHANGE OF CONTROL SEVERANCE PLAN

AMGEN INC., a Delaware corporation, has established this Change of Control Severance Plan, as
amended and restated, effective as of December 9, 2010, as subsequently amended effective March 2,
2011 (the “Plan”) for the benefit of certain key employees of Amgen Inc. and Covered Subsidiaries
(as defined below).

The purposes of the Plan are as follows:

	 	(1)	 	To reinforce and encourage the continued attention and dedication of members of
the Company’s management to their assigned duties without the distraction arising from
the possibility of a change of control of the Company;

	 	(2)	 	To enable and encourage the Company’s management to focus their attention on
obtaining the best possible deal for the Company’s stockholders and to make an
independent evaluation of all possible transactions, without being influenced by their
personal concerns regarding the possible impact of various transactions on the security
of their jobs and benefits; and

	 	(3)	 	To provide severance benefits to any Participant (as defined below) who incurs
a termination of employment under the circumstances described herein within a certain
period following a Change of Control (as defined below).

	 	1.	 	Defined Terms. For purposes of the Plan, the following terms shall
have the meanings indicated below:

	 	(A)	 	“Accountants” shall mean the Company’s independent registered public
accountants serving immediately prior to the Change of Control; provided, however, that
in the event that the Accountants are also serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Administration
Committee shall appoint another nationally recognized public accounting firm to make
the calculations required hereunder (which accounting firm shall then be referred to as
the Accountants hereunder).

	 	(B)	 	“Administration Committee” shall mean the committee which is responsible for
administering the Plan, as described in Section 3(A) hereof.

	 	(C)	 	“Amgen Retirement Savings Plan” shall mean the Amgen Retirement and Savings
Plan, As Amended and Restated Effective January 1, 2010, or any successor plan.

	 	(D)	 	“Amgen Supplemental Retirement Plan” shall mean the Amgen Inc. Supplemental
Retirement Plan, Amended and Restated Effective January 1, 2009, or any successor plan.

	 	(E)	 	“Benefits Continuation Period” shall mean the earlier to occur of (i) the
expiration of a Participant’s eligibility for coverage under COBRA, and (ii) the

 

 

	 	 	 	expiration of the eighteen (18) month period immediately following the
Participant’s Date of Termination.

	 	(F)	 	“Benefits Multiple” shall mean (i) with respect to each Group I Participant,
two (2), (ii) with respect to each Group II Participant, two (2), and (iii) with
respect to each Group III Participant, one (1).

	 	(G)	 	“Board” shall mean the Board of Directors of the Company.

	 	(H)	 	“Cash Severance Payment” shall mean a lump sum cash payment in an amount equal
to the product of (x) the Participant’s Benefits Multiple, and (y) the sum of (i) the
Participant’s annual base salary as in effect immediately prior to the Date of
Termination or, if higher, as in effect immediately prior to the Change of Control,
plus (ii) the Participant’s targeted annual bonus for the year in which such Date of
Termination occurs (determined as the product of the Participant’s annual base salary
and the Participant’s target annual bonus percentage, each as in effect immediately
prior to the Date of Termination or, if higher, as in effect immediately prior to the
Change of Control).

	 	(I)	 	“Cause,” with respect to any Participant, shall mean (i) the Participant’s
conviction of a felony, or (ii) the engaging by the Participant in conduct that
constitutes willful gross neglect or willful gross misconduct in carrying out the
Participant’s duties, resulting, in either case, in material economic harm to the
Company, unless the Participant believed in good faith that such conduct was in, or not
contrary to, the best interests of the Company. For purposes of clause (ii) above, no
act, or failure to act, on the Participant’s part shall be deemed “willful” unless
done, or omitted to be done, by the Participant not in good faith.

	 	(J)	 	A “Change of Control” of the Company shall be deemed to have occurred at any of
the following times:

	 	(i)	 	upon the acquisition (other than from the Company) by any
person, entity or “group,” within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act (excluding, for this purpose, the Company or its
affiliates, or any employee benefit plan of the Company or its affiliates which
acquires beneficial ownership of voting securities of the Company), of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of fifty percent (50%) or more of either the then outstanding
 shares of Common Stock or the combined voting power of the Company’s then
outstanding voting securities entitled to vote generally in the election of
directors; or

	 	(ii)	 	at the time individuals who, as of December 9, 2010, constitute
the Board (the “Incumbent Board”) cease for any reason to constitute at least
a majority of the Board, provided, that any person becoming a director
subsequent to December 9, 2010, whose election, or nomination for election by
the Company’s stockholders, was approved by a vote of at

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	 	 	 	least a majority of the directors then comprising the Incumbent Board (other
than an election or nomination of an individual whose initial assumption of
office is in connection with an actual or threatened election contest
relating to the election of the directors of the Company) shall be, for
purposes of the Plan, considered as though such person were a member of the
Incumbent Board; or

	 	(iii)	 	immediately prior to the consummation by the Company of a
reorganization, merger, consolidation, (in each case, with respect to which
persons who were the stockholders of the Company immediately prior to such
reorganization, merger or consolidation do not, immediately thereafter, own
more than fifty percent (50%) of the combined voting power entitled to vote
generally in the election of directors of the reorganized, merged or
consolidated company’s then outstanding voting securities) or a liquidation or
dissolution of the Company or the sale of all or substantially all of the
assets of the Company; or
	 
	 	(iv)	 	the occurrence of any other event which the Incumbent Board in
its sole discretion determines constitutes a Change of Control.

	 	(K)	 	“Change of Control Period” shall mean the period beginning on the date of a
Change of Control and ending on the second anniversary of such Change of Control.

	 	(L)	 	“COBRA” shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended.

	 	(M)	 	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time.

	 	(N)	 	“Common Stock” shall mean the common stock of the Company, par value $0.0001
per share.

	 	(O)	 	“Company” shall mean Amgen Inc., a Delaware corporation, and, except in
determining under Section 1(J) hereof whether or not any Change of Control of the
Company has occurred, shall include any successor to its business and/or assets.
“Company” shall exclude any disregarded entity pursuant Treasury Regulations section
301.7701-3, unless the Plan is amended to designate the disregarded entity’s employees
as Participants.

	 	(P)	 	“Compensation Committee” shall mean the Compensation and Management Development
Committee of the Board.

	 	(Q)	 	“Confidential Information” shall mean information disclosed to the Participant
or known by the Participant as a consequence of or through his or her relationship with
the Company, about the customers, employees, business methods, public relations
methods, organization, procedures or finances, including, without

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	 	 	 	limitation, information of or relating to customer lists, of the Company and its
affiliates.

	 	(R)	 	“Covered Subsidiaries” shall mean those Subsidiaries of the Company which are
incorporated in any of the fifty states of the United States or the District of
Columbia, except as otherwise determined in writing by the Administration Committee in
its sole discretion and designated on Annex A attached hereto as maintained by
the Administration Committee.

	 	(S)	 	“Date of Termination” shall mean with respect to any purported termination of a
Participant’s employment (other than by reason of the Participant’s death), (i) if the
Participant’s employment is terminated for Disability, the date upon which a Notice of
Termination is given, and (ii) if the Participant’s employment is terminated for any
other reason, whether voluntarily or involuntarily, the date that the Participant’s
employment terminates, as specified in the Notice of Termination (which shall be within
sixty (60) days from the date such Notice of Termination is given).

	 	(T)	 	“Disability” shall be determined in accordance with the Company’s long-term
disability plan as in effect immediately prior to a Change of Control.

	 	(U)	 	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from
time to time.

	 	(V)	 	“Good Reason,” with respect to any Participant, shall mean the occurrence
(without the Participant’s express written consent) of any of the following conditions,
but only if (1) the Participant provides written notice to the Company of the existence
of the condition within thirty (30) days of the initial existence of the condition; (2)
the Company fails to remedy the condition within the thirty (30)-day period following
the Company’s receipt of the notice delivered pursuant to clause (1); and (3) the
Participant actually terminates employment within thirty (30) days following the
expiration of the thirty (30)-day period described above in clause (2):

(i) any adverse and material diminution in the Participant’s
authority, duties or responsibilities as they existed immediately
prior to the Change of Control or as the same may be increased
from time to time thereafter;

(ii) the Company’s material reduction of the Participant’s annual
base salary as in effect immediately prior to the Change of
Control;

(iii) relocation of the Company’s offices at which the
Participant is employed immediately prior to the Change of
Control which increases the Participant’s daily commute by more
than one-hundred (100) miles on a round trip basis; or

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(iv) any other action or inaction by the Company that constitutes
a material breach of the agreement under which the Participant
provides services.

A Participant’s right to terminate his or her employment for Good Reason
shall not be affected by the Participant’s incapacity due to physical or
mental illness.

	 	(W)	 	“Group I Participants” shall mean those staff members of the Company, who hold
the title of senior vice president or equivalent and above, and any other senior
executive-level staff members of the Company and the Covered Subsidiaries whom the
Administration Committee has designated as Group I Participants, as such group shall be
constituted immediately prior to a Change of Control. At or before the occurrence of a
Change of Control, the Company shall notify the Group I Participants in writing of
their status as Participants in the Plan.

	 	(X)	 	“Group II Participants” shall mean those management-level staff members of the
Company and the Covered Subsidiaries at Level 8 or equivalent and above and who are not
Group I Participants, as such group shall be constituted immediately prior to a Change
of Control. At or before the occurrence of a Change of Control, the Company shall
notify the Group II Participants in writing of their status as Participants in the
Plan.

	 	(Y)	 	“Group III Participants” shall mean those management-level staff members of the
Company and the Covered Subsidiaries at Level 7 or equivalent, as such group shall be
constituted immediately prior to a Change of Control. At or before the occurrence of a
Change of Control, the Company shall notify the Group III Participants in writing of
their status as Participants in the Plan.

	 	(Z)	 	“Notice of Termination” shall mean a notice which shall indicate the specific
termination provision in the Plan relied upon and shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the
Participant’s employment under the provision so indicated.

	 	(AA)	 	“Participants” shall mean, collectively, the Group I Participants, the Group II
Participants and the Group III Participants.

	 	(BB)	 	“Proprietary Information Agreement” shall mean the Company’s form of
Proprietary Information and Inventions Agreement in the form in effect immediately
prior to a Change of Control.

	 	(CC)	 	"Subsidiary” shall mean any entity (other than the Company), in an unbroken
chain of entities beginning with the Company if each of the entities other than the
last entity in the unbroken chain beneficially owns, at the time of the determination,
securities or interests representing more than fifty percent (50%) of the total
combined voting power of all classes of securities or interests in one of the other
entities in such chain.

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	 	2.	 	Effective Date and Term of Plan. The Plan, as amended and restated,
shall be effective as of December 9, 2010 and shall continue in effect through
December 31, 2014; provided, however, that commencing on December 31, 2014 and on each
December 31 thereafter, the Plan shall automatically be extended for one additional
year by adding one year to the last day of the term as then in effect unless, not
later than November 30 of such year, the Company shall have given notice to the
Participants that the term of the Plan will not be extended; provided, further, that
if a Change of Control occurs during the original or any extended term of the Plan,
the term of the Plan shall continue in effect for a period of not less than
twenty-four (24) months beyond the month in which such Change of Control occurred.

	 	3.	 	Administration.

	 	(A)	 	The Plan shall be interpreted, administered and operated by the Compensation
Committee, except that if the Compensation Committee determines that a Change of
Control is likely to occur, the Compensation Committee shall appoint a person or group
of persons who shall constitute the Administration Committee after the occurrence of
the Change of Control, which Administration Committee shall have the power to
interpret, administer and operate the Plan after the occurrence of the Change of
Control. The Administration Committee shall have complete authority, in its sole
discretion subject to the express provisions of the Plan, to determine who shall be a
Participant, to interpret the Plan, to prescribe, amend and rescind rules and
regulations relating to it, and to make all other determinations necessary or advisable
for the administration of the Plan. The Administration Committee may delegate any of
its duties hereunder to such person or persons from time to time as it may designate.

	 	(B)	 	All expenses and liabilities which members of the Administration Committee
incur in connection with the administration of the Plan shall be borne by the Company.
The Administration Committee may employ attorneys, consultants, accountants,
appraisers, brokers, or other persons in connection with such administration, and the
Administration Committee, the Company and the Company’s officers and directors shall be
entitled to rely upon the advice, opinions or valuations of any such persons. No
member of the Compensation Committee, the Administration Committee or the Board shall
be personally liable for any action, determination or interpretation made in good faith
with respect to the Plan, and all members of the Compensation Committee, the
Administration Committee and the Board shall be fully protected by the Company in
respect of any such action, determination or interpretation.

	 	4.	 	Benefits Provided.

	 	4.1	 	Termination After Change of Control. If a Participant’s employment is
terminated during a Change of Control Period (a) by the Company other than for Cause or
Disability, or (b) by the Participant for Good Reason, the Company shall

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	 	 	 	pay the Participant the amounts, and provide the Participant with the benefits,
described in this Section 4.1.

	 	(A)	 	Cash Severance Payment. In lieu of any further salary payments to the
Participant for periods subsequent to the Date of Termination and in lieu of any
severance benefit otherwise payable to the Participant (other than accrued vacation and
similar benefits otherwise payable upon termination of employment pursuant to Company
policies and programs), the Company shall pay to the Participant the Cash Severance
Payment.

	 	(B)	 	Benefits. Subject to subsection (B) of Section 11.6 hereof, if, as a result of
the Participant’s termination of employment, the Participant becomes entitled to, and
timely elects to continue, health care (including any applicable vision benefits)
and/or dental coverage under COBRA, the Company shall provide the Participant and his
or her dependents with Company-paid group health and dental insurance continuation
coverage under COBRA during the Benefits Continuation Period.

	 	(C)	 	The Company shall pay to the Participant any earned but unpaid portion of the
Participant’s base salary as of the Date of Termination at the rate in effect at the
time Notice of Termination is given, plus all other amounts to which the Participant is
entitled under any compensation plan or practice of the Company at the time such
payments are due.

	 	(D)	 	The Participant shall be fully vested in his or her accrued benefits under the
Amgen Retirement Savings Plan and the Amgen Supplemental Retirement Plan, as
applicable. The Company shall provide the Participant with either, in the Company’s
sole discretion, a lump-sum cash payment or a contribution to the Amgen Supplemental
Retirement Plan, in an amount equal to the sum of (1) the product of $2,500 and the
Benefits Multiple and (2) the product of (x) 0.10, (y) the sum of (i) the Participant’s
annual base salary as in effect immediately prior to the Date of Termination or, if
higher, as in effect immediately prior to the Change of Control, plus (ii) the
Participant’s targeted annual bonus for the year in which such Date of Termination
occurs (determined as the product of the Participant’s annual base salary and the
Participant’s target annual bonus percentage, each as in effect immediately prior to
the Date of Termination or, if higher, as in effect immediately prior to the Change of
Control) and (z) the Benefits Multiple. Subject to subsection (B) of Section 11.6
hereof, payment under this Section 4.1(D) will be made within 45 days (or as soon
thereafter as is administratively practicable) after the Date of Termination, but in no
event more than two and one-half months after the end of the calendar year in which the
Date of Termination occurs.

	 	(E)	 	In any situation where under applicable law the Company has the power to
indemnify (or advance expenses to) the Participant in respect of any judgments, fines,
settlements, loss, cost or expense (including attorneys’ fees) of any nature related to
or arising out of the Participant’s activities as an agent, employee, officer or
director of the Company or in any other capacity on behalf of or at the

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	 	 	 	request of the Company, the Company shall promptly on written request, indemnify
(and advance expenses to) the Participant to the fullest extent permitted by
applicable law. Such agreement by the Company shall not be deemed to impair any
other obligation of the Company respecting the Participant’s indemnification
otherwise arising out of this or any other agreement or promise of the Company or
under any statute.

	 	(F)	 	For the four (4) year period immediately following the Date of Termination, the
Company shall furnish each Participant who was a director and/or officer of the Company
at any time prior to the Date of Termination with directors’ and/or officers’ liability
insurance, as applicable, insuring the Participant against insurable events which occur
or have occurred while the Participant was a director or officer of the Company, such
insurance to have policy limits aggregating not less than the amount in effect
immediately prior to the Change of Control, and otherwise to be in substantially the
same form and to contain substantially the same terms, conditions and exceptions as the
liability insurance policies provided for officers and directors of the Company in
force from time to time, provided, however, that if the aggregate annual premiums for
such insurance at any time during such period exceed one hundred and fifty percent
(150%) of the per annum rate of premium currently paid by the Company for such
insurance, then the Company shall provide the maximum coverage that will then be
available at an annual premium equal to one hundred and fifty percent (150%) of such
rate.

	 	4.2	 	 

	 	(A)	 	All calculations required to be made under Section 4.1 hereof, including the
amount of the Cash Severance Payment and the assumptions to be utilized in arriving at
such calculations shall be made by the Accountants. The Accountants shall provide the
Participant and the Company with detailed supporting calculations with respect to such
calculations at least fifteen (15) business days prior to the date of the Change of
Control (or as soon as practicable in the event that the Accountants have less than
fifteen (15) business days advance notice of the potential occurrence of the Change of
Control) with respect to the impact of any payment which will be made to the
Participant before, at or immediately after the Change of Control and from time to time
thereafter to the extent that the Participant may become entitled to receive any
additional payments or benefits which would affect the amount of any “excess parachute
payments” within the meaning of Section 280G(b)(1) of the Code payable to the
Participant in order that the Participant may determine whether it is in the best
interest of the Participant to waive the receipt of any or all amounts which may
constitute “excess parachute payments.” Any calculation by the Accountants shall be
binding upon the Company and the Participant. All fees and expenses of the Accountants
under this Section 4.2 shall be borne solely by the Company.

	 	(B)	 	Notwithstanding any other provision of this Plan, in the event that any payment
or benefit received or to be received by the Participant, including any payment or
benefit received in connection with a termination of the Participant’s employment,
whether pursuant to the terms of this Plan or any other plan,

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	 	 	 	arrangement or agreement, (all such payments and benefits, including the payments
and benefits under Section 4 hereof, being hereinafter referred to as the “Total
Payments”) would be subject (in whole or part), to the excise tax imposed under
Section 4999 of the Code (the “Excise Tax”), then, after taking into account
any reduction in the Total Payments provided by reason of Section 280G of the Code
in such other plan, arrangement or agreement, the payments under this Plan shall be
reduced in the order specified below, to the extent necessary so that no portion of
the Total Payments is subject to the Excise Tax but only if (i) the net amount of
such Total Payments, as so reduced (and after subtracting the net amount of federal,
state and local income taxes on such reduced Total Payments and after taking into
account the phase out of itemized deductions and personal exemptions attributable to
such reduced Total Payments) is greater than or equal to (ii) the net amount of such
Total Payments without such reduction (but after subtracting the net amount of
federal, state and local income taxes on such Total Payments and the amount of
Excise Tax to which the Participant would be subject in respect of such unreduced
Total Payments and after taking into account the phase out of itemized deductions
and personal exemptions attributable to such unreduced Total Payments). The
payments and benefits under this Plan shall be reduced in the following order: (A)
reduction of any cash severance payments otherwise payable to the Participant that
are exempt from Section 409A of the Code; (B) reduction of any other cash payments
or benefits otherwise payable to the Participant that are exempt from Section 409A
of the Code, but excluding any payments attributable to any acceleration of vesting
or payments with respect to any equity award that are exempt from Section 409A of
the Code; (C) reduction of any other payments or benefits otherwise payable to the
Participant on a pro-rata basis or such other manner that complies with Section 409A
of the Code, but excluding any payments attributable to any acceleration of vesting
and payments with respect to any equity award that are exempt from Section 409A of
the Code; and (D) reduction of any payments attributable to any acceleration of
vesting or payments with respect to any equity award that are exempt from Section
409A of the Code, in each case beginning with payments that would otherwise be made
last in time.

	 	(C)	 	For purposes of determining whether and the extent to which the Total Payments
will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or
enjoyment of which the Executive shall have waived at such time and in such manner as
not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall
be taken into account; (ii) no portion of the Total Payments shall be taken into
account which, in the written opinion of the Accountants, does not constitute a
“parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by
reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no
portion of such Total Payments shall be taken into account which, in the opinion of the
Accountants, constitutes reasonable compensation for services actually rendered, within
the meaning of Section 280G(b)(4)(B) of the Code, in excess of the Base Amount (as
defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation;
and (iii) the value of any non-cash benefit or any deferred payment or benefit included
in the

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	 	 	 	Total Payments shall be determined by the Accountants in accordance with the
principles of Sections 280G(d)(3) and (4) of the Code.

	 	4.3	 	Subject to subsection (B) of Section 11.6 hereof, the cash payments provided in
subsections (A), (C) and (D) of Section 4.1 hereof shall be made by the fifth (5th) day
following the receipt by the Participant of the Accountants’ calculation, but in no
event later than March 15 of the calendar year following the calendar year in which the
Participant’s employment is terminated. As a result of uncertainty in the application
of Section 280G and Section 4999 of the Code at the time of the initial calculation by
the Accountants hereunder, it is possible that the Cash Severance Payment made by the
Company will have been less than the Company should have paid pursuant to Section
4.1(A) hereof, as the case may be (the amount of any such deficiency, the
“Underpayment”) or more than the Company should have paid pursuant to Section 4.1(A)
hereof, as the case may be (the amount of any such overage, the “Overpayment”). In the
event of an Underpayment, the Company shall pay the Participant the amount of such
Underpayment (together with interest at 120% of the rate provided in Section
1274(b)(2)(B) of the Code) not later than five (5) business days after the amount of
such Underpayment is subsequently determined, provided, however, such Underpayment
shall not be paid later than the end of the calendar year following the calendar year
in which the Participant remitted the related taxes. In the event of an Overpayment,
the amount of such Overpayment shall constitute a loan by the Company to the
Participant, payable not later than five (5) business days after the amount of such
Overpayment is subsequently determined (together with interest at 120% of the rate
provided in Section 1274(b)(2)(B) of the Code).

	 	4.4	 	At the time that any payments are made under the Plan, the Company shall
provide the Participant with a written statement setting forth the manner in which such
payments were calculated and the basis for such calculations including, without
limitation, any opinions or other advice the Company has received from its counsel, the
Accountants or other advisors or consultants (and any such opinions or advice which are
in writing shall be attached to the statement).

	 	5.	 	Termination Procedures.

	 	5.1	 	Notice of Termination. Any purported termination of a Participant’s employment
following a Change of Control (other than by reason of death) shall be communicated by
written Notice of Termination from one party to the other party in accordance with
Section 8 hereof. Further, no termination for Cause shall be effective without (a)
reasonable notice to the Participant setting forth the reasons for the Company’s
intention to terminate which specifies the particulars thereof in detail, and (b) in
the case of clause (ii) of the definition of Cause above, an opportunity for the
Participant to cure such Cause within twenty (20) days after receipt of such notice.
With respect to the Group I Participants, the Notice of Termination must include a
written statement that a majority of the entire membership of the Board has determined
that the Participant was guilty of the conduct constituting Cause. With respect to
Group II Participants and Group III

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	 	 	 	Participants, the Notice of Termination must include a written statement by one of
the Participant’s direct or indirect supervisors that the supervisor has determined
that the Participant was guilty of conduct constituting Cause.

	 	6.	 	No Mitigation. The Company agrees that, in order for a Participant to
be eligible to receive the payments and other benefits described herein, the
Participant is not required to seek other employment or to attempt in any way to reduce
any amounts payable to the Participant by the Company pursuant to Section 4 hereof.
Further, the amount of any payment or benefit provided for in the Plan shall not be
reduced by any compensation earned by the Participant as the result of employment by
another employer, by retirement benefits, by offset against any amount claimed to be
owed by the Participant to the Company, or otherwise.

	 	7.	 	Successors; Binding Agreement.

	 	7.1	 	 

	 	(A)	 	The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to expressly assume the Plan and all obligations
of the Company hereunder in the same manner and to the same extent that the Company
would be so obligated if no such succession had taken place.

	 	(B)	 	This Plan shall inure to the benefit of and shall be binding upon the Company,
its successors and assigns, but without the prior written consent of the Participants
the Plan may not be assigned other than in connection with the merger or sale of any
part of the business and/or assets of the Company or similar transaction in which the
successor or assignee assumes (whether by operation of law or express assumption) all
obligations of the Company hereunder.

	 	7.2	 	This Plan shall inure to the benefit of and be enforceable by the Participant’s
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees, legatees or other beneficiaries. If a Participant shall die
while any amount would still be payable to such Participant hereunder (other than
amounts which, by their terms, terminate upon the death of the Participant) if such
Participant had continued to live, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of the Plan to the executors, personal
representatives or administrators of such Participant’s estate.

	 	8.	 	Notices. For the purpose of the Plan, notices and all other
communications provided for in the Plan shall be in writing and shall be deemed to have
been duly given when delivered or mailed by United States registered mail, return
receipt requested, postage prepaid, addressed, if to a Participant, to the address on
file with the Company and, if to the Company, to the address set forth below, or to
such other address as either party may have furnished to the other in writing in
accordance herewith, except that notice of change of address shall be effective only
upon actual receipt:

One Amgen Center Drive
Thousand Oaks, California 91320-1789
Attention: Corporate Secretary

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	 	9.	 	Claims Procedures; Expenses.

	 	9.1	 	The Participant’s assertion of a right to benefits under, in connection with,
or in any way related to the Plan constitutes Participant’s agreement to resolve
covered disputes against any person or entity pursuant to this Section 9.

	 	9.2	 	Claim for Benefits. A Participant may file with the Administration Committee a
written claim for benefits under the Plan. The Administration Committee shall, within
a reasonable time not to exceed ninety (90) days, unless special circumstances require
an extension of time of not more than an additional ninety (90) days (in which event a
Participant will be notified of the delay during the first ninety (90) day period),
provide adequate notice in writing to any Participant whose claim for benefits shall
have been denied, setting forth the following in a manner calculated to be understood
by the Participant: (i) the specific reason or reasons for the denial; (ii) specific
reference to the provision or provisions of the Plan on which the denial is based;
(iii) a description of any additional material or information required to perfect the
claim, and an explanation of why such material or information is necessary; and (iv)
information as to the steps to be taken in order that the denial of the claim may be
reviewed, including a statement of the Participant’s right to bring an action under
Section 502(a) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”) following an adverse determination of the claim.

	 	9.3	 	Review of Claims. If a Participant’s claim has been denied and the Participant
wishes to submit a request for a review of such claim, the Participant must follow the
claims review procedure below:

	 	(A)	 	Upon the denial of a claim for benefits, a Participant may file a request for
review of the claim, in writing, with the Administration Committee or any person or
persons to whom the Administration Committee has delegated its duties hereunder,
including a claims processor;

	 	(B)	 	The Participant must file the claim for review not later than 60 days after the
Participant has received written notification of the denial of the claim;

	 	(C)	 	The Participant has the right to review and obtain copies of all relevant
documents relating to the denial of the claim and to submit any issues and comments, in
writing, to the Administration Committee;

12

 

	 	(D)	 	If the claim is denied, the Administration Committee must provide the
Participant with written notice of this denial within 60 days after the Administration
Committee’s receipt of the Participant’s written claim for review. There may be times
when this 60-day period may be extended. This extension may only be made, however,
when there are special circumstances that are communicated to the Participant in
writing within the 60-day period. If there is an extension, a decision will be made as
soon as possible, but not later than 120 days after receipt by the Administration
Committee of the claim for review; and

	 	(E)	 	The Administration Committee’s decision on the claim for review will be
communicated to the Participant in writing, and if the claim for review is denied in
whole or part, the decision will include: (i) the specific reason or reasons for the
denial; (ii) specific reference to the provision or provisions of the Plan on which the
denial is based; (iii) a statement that the Participant may receive, upon request and
free of charge, reasonable access to and copies of, all documents, records and other
information relevant to the claim; and (iv) a statement of the Participant’s right to
bring an action under Section 502(a) of ERISA.

	 	9.4	 	Expenses, Legal Fees. The Company shall pay to the Participant all reasonable
expenses (including reasonable attorneys’ fees and legal expenses) incurred by the
Participant with respect to any dispute or controversy arising under or in connection
with the Plan (including, without limitation, all such fees and expenses, if any,
incurred in contesting or disputing any termination of the Participant’s employment or
in seeking to obtain or enforce any right or benefit provided by the Plan, or in
connection with any tax audit or proceeding to the extent attributable to the
application of Section 4999 of the Code to any payment or benefit provided hereunder)
if the Participant prevails on any material issue which is in dispute with respect to
such dispute or controversy. The Company shall make such payments no later than the
last day of the Participant’s taxable year immediately following the taxable year in
which the expenses are incurred.

	 	10.	 	Confidentiality; Non-Solicitation.

	 	10.1	 	Confidentiality. With respect to each Participant, during the Participant’s
Benefits Continuation Period, the Participant shall not directly or indirectly disclose
or make available to any person, firm, corporation, association or other entity for any
reason or purpose whatsoever, any Confidential Information. Upon termination of a
Participant’s employment with the Company, all Confidential Information in the
Participant’s possession that is in written or other tangible form (together with all
copies or duplicates thereof, including computer files) shall be returned to the
Company and shall not be retained by the Participant or furnished to any third party,
in any form except as provided herein; provided, however, that the Participant shall
not be obligated to treat as confidential, or return to the Company copies of any
Confidential Information that (i) was publicly known at the time of disclosure to the
Participant, (ii) becomes publicly known or available thereafter other than by any
means in violation of the Plan or any other duty owed to the Company by any person or
entity, or (iii) is lawfully disclosed to the Participant

13

 

	 	 	 	by a third party. In addition, each Participant shall be subject to the Company’s
policies regarding proprietary information and inventions, as set forth in the
Proprietary Information Agreement.

	 	10.2	 	Non-Solicitation. In addition to each Participant’s obligations under the
Proprietary Information Agreement, during a Participant’s Benefits Continuation Period,
the Participant shall not, either on the Participant’s own account or jointly with or
as a manager, agent, officer, employee, consultant, partner, joint venturer, owner or
stockholder or otherwise on behalf of any other person, firm or corporation, directly
or indirectly solicit or attempt to solicit away from the Company any of its officers
or employees or offer employment to any person who is an officer or employee of the
Company; provided, however, that a general advertisement to which an employee of the
Company responds shall in no event be deemed to result in a breach of this Section
10.2.

	 	10.3	 	Breach; Violation. In the event that a Participant breaches or violates any
provision of Section 10.1 or 10.2 hereof, the Participant shall thereupon forfeit any
right and interest of the Participant to receive payments or benefits hereunder, and
the Company shall thereupon have no further obligation to provide such payments or
benefits to the Participant hereunder.

	 	10.4	 	Survival of Provisions. The provisions of this Section 10 shall survive the
termination or expiration of the applicable Participant’s employment with the Company
and shall be fully enforceable thereafter. If it is determined by a court of competent
jurisdiction in any state that any restriction in this Section 10 is excessive in
duration or scope or is unreasonable or unenforceable under the laws of that state, it
is the intention of the parties that such restriction may be modified or amended by the
court to render it enforceable to the maximum extent permitted by the law of that
state.

	 	11.	 	Miscellaneous.

	 	11.1	 	No Waiver. No waiver by the Company or any Participant, as the case may be, at
any time of any breach by the other party of, or of any lack of compliance with, any
condition or provision of the Plan to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any prior
or subsequent time. All other plans, policies and arrangements of the Company in which
the Participant participates during the term of the Plan shall be interpreted so as to
avoid the duplication of benefits paid hereunder.

	 	11.2	 	No Right to Employment. Nothing contained in the Plan or any documents
relating to the Plan shall (i) confer upon any Participant any right to continue as a
Participant or in the employ of the Company or a subsidiary, (ii) constitute any
contract or agreement of employment, or (iii) interfere in any way with the at-will
nature of the Participant’s employment with the Company.

14

 

	 	11.3	 	Termination and Amendment of Plan. The Company shall have the right to amend
(and to amend or cancel any amendments), or, subject to Section 2 hereof, terminate the
Plan at any time by resolution of the Board; provided, however, that after a Change of
Control, the Company may not terminate the Plan and no amendment to the Plan shall be
made which removes any Participant from participation in the Plan, which amends
subsection (W), (X) or (Y) of Section 1 hereof or which adversely affects a
Participant’s interests without the express written consent of the Participant(s) so
affected. Subject to Section 10.3 hereof, notwithstanding anything contained herein to
the contrary, all obligations accrued by Participants prior to any termination of the
Plan must be satisfied in full in accordance with the terms hereof.

	 	11.4	 	Benefits not Assignable. Except as otherwise provided herein or by law, no
right or interest of any Participant under the Plan shall be assignable or
transferable, in whole or in part, either directly or by operation of law or otherwise,
including, without limitation, by execution, levy, garnishment, attachment, pledge or
in any manner; no attempted assignment or transfer thereof shall be effective; and no
right or interest of any Participant under the Plan shall be liable for, or subject to,
any obligation or liability of such Participant. When a payment is due under the Plan
to a Participant who is unable to care for his or her affairs, payment may be made
directly to his or her legal guardian or personal representative.

	 	11.5	 	Tax Withholding. The Company shall withhold from any payments made to a
Participant under this Plan all federal, state and local income, employment and other
taxes that the Company reasonably determines to be required to be withheld by the
Company in connection with such payments, in amounts and in a manner to be determined
in the sole discretion of the Company. Except to the extent specifically provided
within this Plan or any separate written agreement between a Participant and the
Company, a Participant shall be solely responsible for the satisfaction of any taxes
with respect to the benefits payable to the Participant under this Plan (including, but
not limited to, employment taxes imposed on employees and additional taxes on
nonqualified deferred compensation).

	 	11.6	 	Code Section 409A.

	 	(A)	 	Generally. Although the Company intends and expects that the Plan and its
payments and benefits will not give rise to taxes imposed under Section 409A of the
Code, neither the Company, nor its employees, directors, or agents shall have any
obligation to mitigate or to hold any Participant harmless from any or all of such
taxes.

	 	(B)	 	Section 409A Six-Month Delayed Payment Rule. If any payments or benefits
that become payable under this Plan on account of the Participant’s termination of
employment constitute a deferral of compensation under Code Section 409A, such
payments or benefits will be provided when the Participant incurs a “separation from
service” within the meaning of Treasury Regulation § 1.409A-1(h) or successor
provision (“Separation from Service”). If, at the time of the

15

 

	 	 	 	Participant’s Separation from Service, the Participant is a “specified employee”
(within the meaning of Section 409A of the Code and Treasury Regulation Section
1.409A-1(i) or successor provision), the Company will not pay or provide any
“Specified Benefits” (as defined herein) during the six-month period beginning with
the date of the Participant’s Separation from Service (the “409A Suspension
Period”). In the event of a Participant’s death, however, the Specified Benefits
shall be paid to the Participant’s Beneficiary without regard to the 409A Suspension
Period. For purposes of this Plan, “Specified Benefits” are any payments or
benefits that would be subject to Section 409A additional taxes if the Company were
to pay them, pursuant to this Plan, on account of the Participant’s “separation from
service.” Within 14 calendar days after the end of the 409A Suspension Period, the
Participant shall be paid a lump-sum payment in cash equal to any Specified Benefits
delayed during the 409A Suspension Period.

	 	11.7	 	California Law. This Plan shall be construed, interpreted and the rights of
the parties determined in accordance with the laws of the State of California, to the
extent not preempted by federal law, which shall otherwise control.

	 	11.8	 	Validity. The invalidity or unenforceability of any provision of the Plan
shall not affect the validity or enforceability of any other provision of the Plan,
which shall remain in full force and effect. If the Plan shall for any reason be or
become unenforceable by either party, the Plan shall thereupon terminate and become
unenforceable by the other party as well.

16

 

ANNEX A

AMGEN INC. CHANGE OF CONTROL SEVERANCE PLAN

SUBSIDIARIES EXCLUDED FROM THE DEFINITION “COVERED SUBSIDIARIES”

Effective March 2, 2011, the following designated Subsidiaries shall be excluded from the
definition “Covered Subsidiaries” in the Amgen Inc. Change of Control Severance Plan (the “Plan”)
and such designation shall remain in effect until modified by the Administration Committee as
defined in the Plan:

NONEexv10w1

Exhibit 10.1

REAL ESTATE PURCHASE AND SALE AGREEMENT WITH 

ESCROW INSTRUCTIONS

Dated as of

February 16, 2011

By and Between

Arbor Pointe, L.P., an Ohio limited partnership,

As Seller

and

Steadfast Asset Holdings, Inc., a California corporation,

As Purchaser

regarding

Arbor Pointe Apartments

 

 

REAL ESTATE PURCHASE AND SALE AGREEMENT WITH 

ESCROW INSTRUCTIONS

     THIS REAL ESTATE PURCHASE AND SALE AGREEMENT WITH ESCROW INSTRUCTIONS (“Agreement”) is dated
as of February 16, 2011, and is entered into by and between Arbor Pointe, L.P., an Ohio limited
partnership (“Seller”), and Steadfast Asset Holdings, Inc., a California corporation (“Purchaser”).
As used herein the term “Buyer” shall mean Purchaser or its Permitted Assign (as defined in this
Agreement).

RECITALS

     WHEREAS, Seller is the owner of the land and improvements, including an apartment complex
commonly known as Arbor Pointe Apartments, as further described on Exhibit “A” attached hereto.

     WHEREAS, Buyer desires to purchase from Seller, and Seller desires to sell to Buyer, the
Property (as defined in this Agreement), subject to the terms and conditions of this Agreement and
the exhibits attached hereto.

AGREEMENT

     NOW, THEREFORE, in consideration of the covenants set forth herein and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto, intending to be legally bound, agree as follows:

     1. Definitions. When used in this Agreement and the exhibits attached hereto, the
following terms shall have the following meanings unless otherwise specifically defined. The
singular shall include the plural and the masculine gender shall include the feminine and the
neuter unless otherwise required by the context.

     “Additional Deposit” shall have the meaning set forth in Paragraph 4 of this Agreement.

     “Additional Title Policy Charge” shall have the meaning set forth in Paragraph 11 of this
Agreement.

     “Anti-Terrorism Laws” shall mean any laws related to terrorism or money laundering, including
Executive Order 13224 and the USA Patriot Act, and any regulations promulgated under either of
them.

     “Broker” shall mean Marcus & Millichap, National Tax Credit Property Advisors.

     “Buyer’s Title Notice” shall have the meaning set forth in Paragraph 8(a) of this Agreement.

     “Cash Equivalent” shall mean a wire transfer of funds or other good and immediately available
funds.

1

 

     “Closing” shall have the meaning set forth in Paragraph 18 of this Agreement.

     “Closing Date” shall mean the date of the Closing.

     “Code” shall mean the Internal Revenue Code of 1986, as amended.

     “Contingency Expiration Date” shall mean the date which is thirty (30) days after the date of
this Agreement, or such earlier date as may be specified by Buyer by delivering written notice
thereof to Seller and Escrow Agent.

     “County” shall mean the County in which the Real Property is located.

     “Deposit” shall mean, to the extent deposited with Escrow Agent, the Initial Deposit and the
Additional Deposit.

     “Endorsements” shall have the meaning set forth in Paragraph 11 of this Agreement.

     “Escrow Agent” shall mean Chicago Title Insurance Company.

     “Extended Coverage Title Policy” shall have the meaning set forth in Paragraph 11 of this
Agreement.

     “Funds” shall mean all escrows, reserves, funds, letters of credit, bonds, security deposits
or other funds deposited by Seller with respect to the Property, including, without limitation, (a)
any utility deposits and (b) any such funds deposited with respect to any existing mortgage on the
Property.

     “General Assignment” shall mean a General Assignment and Bill of Sale in the form of Exhibit
“E” attached hereto.

     “Hazardous Materials” shall have the meaning set forth in Paragraph 17(d) of this Agreement.

     “Housing Authority” shall mean the Kentucky Housing Corporation, the relevant tax credit
allocation agency and any other federal, state or local agency with jurisdiction or other rights or
authority over the Property or the Tax Credits related thereto.

     “Improvements” shall mean the apartment complex and all other buildings, structures and
improvements located upon the Real Property.

     “Initial Deposit” shall have the meaning set forth in Paragraph 4 of this Agreement.

     “Intangibles” shall mean, to the extent assignable by and in the possession or control of
Seller: (i) any and all permits, licenses, certificates of occupancy and the like relating to the
Property; (ii) any and all bonds, warranties, and guaranties relating to the Property; (iii) any
and

2

 

all third party site plans, surveys, environment, soil and substrata studies or assessments, plans
and specifications, engineering plans and drawings, landscaping plans or other plans, diagrams or
studies of any kind relating to the Property; (iv) books and records relating to the Tenants; (v)
the name “Arbor Pointe Apartments”; (vi) the telephone numbers, fax numbers and email addresses for
the Property; and (vii) any and all goodwill or other intangible property directly relating to the
Property.

     “Lease Assignment” shall mean an Assignment and Assumption of Leases in the form of Exhibit
“D” attached hereto.

     “Limited Partner Consent” shall mean the prior written consent of SHF.

     “Non-Delinquent Rents” shall mean rents that are equal to or less than thirty (30) days past
due as of the Closing Date.

     “Opening of Escrow” shall mean the date both (i) a fully executed copy of this Agreement and
(ii) the Initial Deposit have been delivered to Escrow Agent.

     “Outside Closing Date” shall have the meaning set forth in Paragraph 18 of this Agreement.

     “Permitted Assign” shall mean any subsidiary or affiliate of Purchaser in which Purchaser
directly or indirectly is under common control with the managing member or general partner of such
subsidiary or affiliate assignee and in which Purchaser directly or indirectly is under common with
the individual or entity that controls the day-to-day management of the Property, or, with the
prior written consent of Seller, any other person or entity.

     “Permitted Exceptions” shall mean (i) all items and matters identified as a “Permitted
Exception” in Paragraph 8(a) of this Agreement, (ii) the Tenant Leases, and (iii) all items and
matters which would be shown on an ALTA survey.

     “Personal Property” shall mean the mechanical systems, fixtures, furniture, appliances, tools,
supplies, inventories, furnishings, equipment and other items of tangible personal property placed
or installed on or about the Real Property or the Improvements and which are owned by Seller and
used as a part of or in connection with the Property, including, without limitation, all heating,
ventilation and air conditioning compressors, engines, systems and equipment; any and all
elevators, electrical fixtures, systems and equipment; all plumbing fixtures, systems and
equipment; and all keys. Personal Property shall exclude personal property that is owned by the
Tenants, former tenants or the management company, or which is leased pursuant to a Service
Contract or Permitted Exception.

     “Prior Noncompliance” shall have the meaning set forth in Paragraph 23(f) of this Agreement.

     “Prohibited Person” shall mean (i) a person or entity subject to the provisions of Executive
Order 13224; (ii) a person or entity owned or controlled by, or acting for or on behalf

3

 

of, an entity subject to the provisions of Executive Order 13224; (iii) a person or entity with
whom Seller or Buyer (as applicable) is prohibited from dealing by any of the Anti-Terrorism Laws;
(iv) a person or entity that is named as a “specially designated national and blocked person” on
the most current list published by the U.S. Treasury Department’s Office of Foreign Assets Control;
or (v) a person or entity that is affiliated with a person or entity described in clauses (i)
through (iv) of this definition, if an entity existing in the United States is prohibited from
doing business with such affiliated person or entity.

     “Property” shall mean Seller’s right, title and interest in the Real Property, the
Improvements, the Personal Property, and, to the extent assignable, the Intangibles, the Tenant
Leases and those Service Contracts being assigned to and assumed by Buyer pursuant to this
Agreement.

     “Property Files” shall have the meaning set forth in Paragraph 8(b) of this Agreement.

     “Purchase Price” shall mean the monetary consideration specified in Paragraph 3 of this
Agreement.

     “Real Property” shall mean the certain real estate, located in the County and State, and
further described on Exhibit “A” attached hereto.

     “Regulatory Agreements” shall have the meaning set forth in Paragraph 23(a) of this Agreement.

     “Rejected Exceptions” shall have the meaning set forth in Paragraph 8(a) of this Agreement.

     “Representatives” shall mean, with respect to any person or entity, the direct and indirect
directors, principals, officers, partners, members, shareholders, agents, contractors, employees,
lawyers, accountants, advisors, consultants, and other representatives of such person or entity,
and its prospective lenders and investors.

     “Required Consents” shall mean the timely notice to, and/or the written consent or approval
of, each governmental or regulatory body (including the Housing Authority), in each case pursuant
to the requirements applicable thereto and in each case to the extent required for the consummation
of the transactions contemplated by this Agreement and the exhibits attached hereto.

     “Seller’s Title Notice” shall have the meaning set forth in Paragraph 8(a) of this Agreement.

     “Service Contracts” shall mean all service, equipment, supply, management, maintenance,
utility, listing and other operating contracts relating to the Property.

     “SHF” shall mean SunAmerica Housing Fund 103, a California limited partnership, a limited
partner of Seller.

4

 

     “Special Warranty Deed” shall mean a deed in the form of Exhibit “B” attached hereto.

     “State” shall mean the State in which the Real Property is located.

     “Survey” shall mean the new or updated survey, if any, of the Real Property and Improvements
obtained by Buyer.

     “Tax Credit Laws” shall have the meaning set forth in Paragraph 23(a) of this Agreement.

     “Tax Credits” shall have the meaning set forth in Paragraph 23(a) of this Agreement.

     “Tenant Deposits” shall mean the deposits, if any, made by Tenants (including any interest
accrued and unpaid thereon for the benefit of Tenants) less the amount such deposits have been
charged, offset or otherwise reduced by Seller under the Tenant Leases or under applicable law.

     “Tenant Leases” shall mean the agreements affecting the Property pursuant to which Tenants are
leasing, renting and/or occupying space within the Improvements.

     “Tenant Notice Letter” shall mean a Tenant Notice Letter in the form of Exhibit “F” attached
hereto.

     “Tenants” shall mean the tenants of the Real Property and Improvements as of the Closing.

     “Threshold Amount” shall mean an amount equal to the product of (a) ten percent (10%) times
(b) the Purchase Price.

     “Title Commitment” shall have the meaning set forth in Paragraph 8(a) of this Agreement.

     “Title Company” shall mean Chicago Title Insurance Company.

     “Title Policy” shall have the meaning set forth in Paragraph 9(a)(ii) of this Agreement.

     “Title Requirements” shall mean those requirements set forth in the Title Commitment which are
to be performed or otherwise satisfied as a condition to the issuance of the Title Policy by the
Title Company.

     2. Purchase and Sale. Seller hereby agrees to assign, sell and convey the Property to
Buyer, and Buyer hereby agrees to purchase, accept and acquire the Property from Seller, subject to
the terms and provisions of this Agreement and the exhibits attached hereto.

5

 

     3. Price. The total Purchase Price to be paid by Buyer to Seller for the Property
shall be the sum of Six Million Five Hundred Thousand Dollars ($6,500,000.00), subject to
adjustments, credits and prorations as set forth in this Agreement.

     4. Payment of Purchase Price. The Purchase Price shall be payable as follows:

          (a) Initial Deposit. Within two (2) business days after execution and delivery of
this Agreement by all parties hereto, Buyer shall deposit with Escrow Agent cash or Cash Equivalent
in the amount of One Hundred Thousand Dollars ($100,000.00) (“Initial Deposit”).

          (b) Additional Deposit. Unless this Agreement is sooner terminated by either Buyer or
Seller in accordance with the terms of this Agreement, upon the Contingency Expiration Date, Buyer
shall deposit with Escrow Agent cash or Cash Equivalent in the additional amount of One Hundred
Thousand Dollars ($100,000.00) (“Additional Deposit”).

          (c) Cash Balance. On or before the Closing Date, Buyer shall deposit with Escrow
Agent additional cash or Cash Equivalent equal to the sum of (i) the amount of the Purchase Price
minus (ii) the amount of the Deposit plus (iii) the amount of Buyer’s share of
expenses plus (or minus) (iv) the amount of adjustments, credits and prorations due from
(or owed to) Buyer in accordance with Paragraph 13 of this Agreement.

          (d) Interest. While held by the Escrow Agent, upon the request and at the direction
of Buyer, the Deposit shall be placed in an interest-bearing account and all interest so earned in
connection with the Deposit shall be deemed a part of the Deposit.

          (e) Deposit Refundability. The Initial Deposit shall remain refundable to Buyer if
this Agreement is terminated in accordance with the provisions of this Agreement on or before the
Contingency Expiration Date. After the Contingency Expiration Date, the entire Deposit shall be
nonrefundable, unless (i) Buyer is not in default hereunder and (ii) this Agreement is terminated
in accordance with the provisions of Paragraph 20(a) of this Agreement or if Buyer is expressly
entitled to a refund of the Deposit pursuant to Paragraph 9(c) or any other provision of this
Agreement. The Deposit shall be credited to Buyer and applied toward payment of the Purchase Price
upon the Closing.

     5. Special Warranty Deed. At the Closing, Seller shall convey the Real Property and
Improvements to Buyer by the Special Warranty Deed and the other documents to be delivered under
this Agreement.

     6. Delivery of Agreement; Failure of the Opening of Escrow. A fully executed copy of
this Agreement shall be delivered to the Escrow Agent by Seller, and this Agreement shall,
thereupon, constitute escrow instructions. If the Opening of Escrow has not occurred within seven
(7) days after the date of this Agreement, this Agreement shall be null and void ab initio and of
no further force and effect.

     7. Operation of Property Through Closing. From the Opening of Escrow until the
Closing (or earlier termination of this Agreement):

6

 

          (a) Except as otherwise provided in this Paragraph 7, Seller shall manage and operate the
Property in accordance with Seller’s current business practices. Subject to comparable coverage
for renewal policies being available at commercially reasonable rates, Seller shall maintain in
full force and effect insurance coverage comparable to its current insurance policies with respect
to the Property.

          (b) Without the prior written consent of Buyer, Seller shall not sell, mortgage, pledge,
hypothecate or otherwise transfer or dispose of all or any part of the Property or any interest
therein, except in the ordinary course of business or except for such mortgages, pledges or
hypothecations as shall be released at or prior to Closing. Notwithstanding the foregoing, Seller
may replace depreciated Personal Property and may otherwise deal with Tenant Leases in a
commercially reasonable manner.

          (c) Except as otherwise provided herein, without the prior written consent of Buyer, which
consent shall not be unreasonably withheld, conditioned or delayed, Seller shall not terminate
(except for those Service Contracts which Seller and Buyer have agreed in writing to terminate),
modify, extend, amend or renew any Service Contract or enter into any new Service Contract, except
in each case as may be reasonably necessary to protect the health or safety of individuals or the
preservation of the Property or otherwise in accordance with Seller’s current business practices.
All new Service Contracts must be terminable, without penalty, on not more than thirty (30) days’
notice.

          (d) From time to time Seller and Seller’s agents may (in their sole discretion or as otherwise
required under this Agreement) sign certifications, notices or other documents or take other action
in connection with Buyer’s financing, approval by the Housing Authority, or otherwise in connection
with the transactions contemplated by this Agreement. Except with respect to Seller’s
representations and warranties expressly set forth in this Agreement, Buyer hereby agrees to
indemnify, defend and hold harmless Seller and its direct and indirect partners, principals and
agents from and against any and all claims, demands, losses, liabilities and expenses, including
attorneys’ and accountants’ fees, asserted against or incurred by Seller or its direct and indirect
partners, principals, and agents in connection with such certifications, notices, or other
documents or actions, except to the extent such claims, demands, losses and liabilities are caused
by Seller’s or Seller’s agents’ intentional misconduct. The indemnity set forth in this Paragraph
7(d) shall survive any termination of this Agreement and shall survive Closing and the delivery of
the Special Warranty Deed at Closing.

     8. Title; Property Files and Buyer’s Inspection Rights.

          (a) Title.

               (i) Commitment. Within five (5) business days after the Opening of Escrow, the Title
Company shall issue and deliver to Buyer a commitment to insure the Real Property to be conveyed
hereunder (“Title Commitment”, as further defined in Paragraph 8(a)(vi) of this Agreement). Title
Company shall provide Buyer with copies of all recorded documents shown as exceptions to title on
the Title Commitment (the “Exception Documents”).

7

 

               (ii) Title Notices. Within five (5) business days following the receipt by Buyer of
the Title Commitment and the Exception Documents, Buyer shall notify Seller in writing (the
“Buyer’s Title Notice”) as to which items, if any, disclosed in the Title Commitment are not
acceptable to Buyer. Within five (5) business days following Seller’s receipt of Buyer’s Title
Notice, Seller (with Limited Partner Consent) shall notify Buyer (“Seller’s Title Notice”) that,
with respect to each matter objected to in Buyer’s Title Notice: (A) it shall take such actions as
may be reasonably necessary to eliminate such matter as an exception in the Title Commitment; or
(B) it shall not take any or all of the actions identified in Buyer’s Title Notice with respect to
such matter. Except to the extent Seller’s Title Notice expressly states that Seller will take an
action with respect to a matter identified in Buyer’s Title Notice (or if Seller fails to deliver
Seller’s Title Notice within such five (5) business day period), then Seller shall be deemed to
have elected clause (B) of this Paragraph 8(a)(ii).

               (iii) Rejected Exception. As used in this Paragraph 8(a), the term “Rejected
Exception” means a matter which is both: (x) expressly objected to in Buyer’s Title Notice (to the
extent of such objection); and (y) expressly agreed to be eliminated in Seller’s Title Notice (to
the extent of such agreement).

               (iv) Title Contingency. In the event Buyer fails to timely deliver Buyer’s Title
Notice, then Buyer shall be deemed to have waived all title objections to matters shown in the
Title Commitment. If Buyer has timely delivered Buyer’s Title Notice and Seller elects (or is
deemed to have elected) to proceed (in whole or in part) in accordance with clause (B) of Paragraph
8(a)(ii) of this Agreement, then Buyer shall have until the Contingency Expiration Date to
terminate this Agreement by delivering written notice thereof to Seller and Escrow Agent, in which
case the provisions of Paragraph 9(c) of this Agreement shall govern. If Buyer shall fail to
provide Seller and Escrow Agent with written notice of termination on or before the Contingency
Expiration Date, then Buyer shall be deemed to have waived all of its title objections (except with
respect to the Rejected Exceptions).

               (v) Title Policy. Each item and matter revealed by the Title Commitment (other than
the Rejected Exceptions) shall be a “Permitted Exception” under this Agreement. At Closing, the
Title Policy (as further defined in Paragraph 9(a)(ii) of this Agreement) shall be as described in
the Title Commitment (but free of each Rejected Exception), subject to the provisions of this
Paragraph 8(a). Buyer shall use commercially reasonable efforts to satisfy or eliminate, on or
before the Closing Date, those Title Requirements to be performed or otherwise satisfied by Buyer.
Seller shall use commercially reasonable efforts to satisfy or eliminate, on or before the Closing
Date, those Title Requirements to be performed or otherwise satisfied by Seller. Notwithstanding
anything to the contrary in this Agreement, (x) Seller shall not be required to expend any funds in
connection with the Title Policy except (i) as expressly set forth in Seller’s Title Notice, and
(ii) in an amount not to exceed $50,000 in the aggregate to satisfy or eliminate the other Title
Requirements to be performed or otherwise satisfied by Seller and other items and matters not
revealed by the Title Commitment; (y) Seller shall have no obligation to execute, perform, satisfy,
incur, make or otherwise undertake any affidavit, indemnity, disclosure, certificate, or other
document, action, expense or liability requested or required by the Title Company in connection
with the Title Policy (including, without limitation,

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such requirements as may be set forth in the Title Commitment); and (z) Seller may satisfy the
Rejected Exceptions, the Title Requirements to be performed or otherwise satisfied by Seller, and
any other items and matters not revealed by the Title Commitment in any manner that will result in
the Title Company issuing the Title Policy (e.g. by providing a surety bond or other collateral
acceptable to the Title Company). Except as expressly required under the foregoing sentence, or as
expressly set forth in Seller’s Title Notice, (A) Seller shall have no obligation to incur any
expense or liability to satisfy or eliminate any Rejected Exception, Title Requirement or other
item or matter not revealed by the Title Commitment, (B) no failure by Seller to satisfy or
eliminate any Rejected Exception, Title Requirement or other item or matter not revealed by the
Title Commitment shall constitute a breach of or default under this Agreement by Seller and Seller
shall not have any liability for damages and Buyer shall have no recourse to equitable relief based
on any such failure, and (C) if Seller fails to eliminate or satisfy, on or before the Closing
Date, any Rejected Exception, Title Requirement or other item or matter not revealed by the Title
Commitment, then Buyer shall have the sole option of either: (x) terminating this Agreement for
failure to satisfy a Buyer closing condition under Paragraph 9(a) of this Agreement by delivering
written notice thereof to Seller and Escrow Agent prior to Closing, in which case the Deposit shall
be returned to Buyer and the other provisions of Paragraph 9(c) of this Agreement shall govern; or
(y) proceeding to Closing, subject to the provisions set forth herein. In the event that (I) Buyer
elects to terminate this Agreement pursuant to clause (x) of this Paragraph 8(a)(v) due to Seller’s
failure to eliminate or satisfy a Rejected Exception as expressly set forth in Seller’s Title
Notice and (II) Buyer is not in default under this Agreement, then and only then Seller shall
reimburse Buyer for Buyer’s reasonable and actual out-of-pocket costs (documented by paid invoices
to third parties) incurred with respect to this agreement, the transaction described herein and the
due diligence performed in connection herewith, not to exceed $150,000.00 in the aggregate. Upon
Closing, Buyer shall be deemed to have waived all objections to the items and matters reflected on
the Title Policy and each such item and matter shall thereafter be a “Permitted Exception” under
this Agreement.

               (vi) Supplemental Title Commitment. In the event the Title Company issues one or more
supplemental Title Commitments, the “Title Commitment” shall be deemed amended to incorporate the
changes reflected in such supplemental Title Commitments. Notwithstanding the foregoing, Buyer
shall have three (3) business days following receipt by Buyer of a supplemental Title Commitment to
deliver a supplemental Buyer’s Title Notice with respect to any new item not shown on either the
Title Commitment or any existing survey delivered to Buyer as part of the Property Files. Within
two (2) business days following Seller’s receipt of the supplemental Buyer’s Title Notice, Seller
(with Limited Partner Consent) shall provide Buyer with a supplemental Seller’s Title Notice. If
Buyer has timely delivered a supplemental Buyer’s Title Notice and Seller elects (or is deemed to
have elected) to proceed (in whole or in part) in accordance with clause (B) of Paragraph 8(a)(ii)
of this Agreement, then Buyer shall have until the earlier of (a) the Closing Date and (b) 10 days
following receipt by Buyer of a supplemental Title Commitment to terminate this Agreement by
delivering written notice thereof to Seller and Escrow Agent, in which case the Deposit shall be
returned to Buyer and the other provisions of Paragraph 9(c) of this Agreement shall govern. If
Buyer shall fail to provide Seller and Escrow Agent with written notice of termination on or before
such date, then Buyer shall be deemed to have waived all of its objections to the items appearing
in such supplemental Title Commitment (except with respect to the Rejected Exceptions). Except as

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expressly modified herein, the provisions of Paragraph 8(a) of this Agreement, including,
without limitation, the timing and effect of any notices to be delivered and the effect of any
failure to deliver same, shall govern with respect to any such additional Buyer’s Title Notice.

               (vii) Survey Matters. Buyer shall have until the date Buyer’s Title Notice is due
under Paragraph 8(a)(ii) of this Agreement to review and approve or disapprove of any survey of the
Property delivered by Seller to Buyer as part of the Property Files, and any such objections shall
be treated in the same manner as objections to matters shown on the Title Commitment as set forth
in Paragraph 8(a)(ii)-(v) of this Agreement. With regard to the Survey obtained by Buyer in
accordance with the provisions of Paragraph 11 of this Agreement, Buyer shall have until the
earlier of (A) five (5) business days after its receipt of the Survey or (B) the Contingency
Expiration Date to deliver an additional Buyer’s Title Notice with respect to any new item not
shown on either the Title Commitment or any existing survey delivered to Buyer as part of the
Property Files. The provisions of Paragraph 8(a) of this Agreement, including, without limitation,
the timing and effect of any notices to be delivered and the effect of any failure to deliver same,
shall govern with respect to any such additional Buyer’s Title Notice.

          (b) Documents and Materials To Be Made Available to Buyer. Within five (5) business
days after the Opening of Escrow, Seller will make available to Buyer the Property Files (as
defined in this Paragraph 8(b)) of Seller. To the extent Seller currently possesses or controls
the same, the “Property Files” are defined as the items set forth on Exhibit “I” attached hereto;
provided, however, Seller shall not be obligated to update, prepare, or cause to be
prepared any of the above-referenced items which may or may not be contained in the Property Files.
Property Files shall not include any appraisals or other indications of the market value of the
Property. Buyer understands and acknowledges that neither Seller nor any of Seller’s
Representatives makes and/or has made any representation or warranty to Buyer as to the accuracy or
completeness of the Property Files and that neither Seller nor any of Seller’s Representatives has
made or will make any attempt to verify the data contained therein. Buyer agrees that Seller shall
not have any liability to Buyer as a result of Buyer’s use of the Property Files.

          (c) Buyer’s Inspection Rights. From the Opening of Escrow and until the Closing or
earlier termination of this Agreement, Buyer shall be provided with access to the Property and
shall be permitted to inspect and examine the Property upon reasonable advance notice to Seller,
subject in all cases to the provisions of this Paragraph 8(c) of this Agreement and the
indemnification provisions described in Paragraph 8(d) of this Agreement. Subject to the rights of
the tenants, Buyer and its Representatives shall have the right to conduct one or more “walk
throughs” of the Property. It is understood and agreed that Buyer shall be responsible to perform
such inspections and other examinations of the Property as Buyer deems necessary or desirable
(including, without limitation, any tests, studies, investigations, inspections and other
examinations of physical and environmental conditions of the Property); provided,
however, that as a condition precedent to exercising such rights, Buyer shall deliver to
Seller a Certificate of Insurance evidencing commercial general liability coverage of not less than
$1,000,000 combined limits, worker’s compensation insurance at statutory limits, and employer’s
liability coverage of not less than $1,000,000. Buyer’s commercial liability insurance shall name
Seller as an additional insured with respect to the Property, including, without limitation, in
connection

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with Buyer’s access to the Property and its tests, studies, investigations, inspections and other
examinations of physical and environmental conditions of the Property. All tests, studies,
investigations, inspections and other examinations by Buyer of the Property shall be conducted in a
non-invasive manner. Buyer shall restore the Property to its original condition promptly after
completing each such test, study, investigation, inspection and other examination. Buyer’s
foregoing agreement shall survive any termination of this Agreement and shall survive Closing and
the delivery of the Special Warranty Deed at Closing.

          (d) Buyer’s Termination Right; Indemnity. Buyer may terminate this Agreement by
delivering written notice thereof to Seller and Escrow Agent on or before the Contingency
Expiration Date, in which event the provisions of Paragraph 9(c) of this Agreement shall govern.
If Buyer shall fail to provide Seller and Escrow Agent with written notice of termination on or
before the Contingency Expiration Date, then Buyer shall be deemed to have affirmatively and
expressly approved and accepted the Property Files, the Property and all conditions, elements and
matters pertinent thereto including, without limitation, soil conditions, zoning, drainage, flood
control, water, sewage, electricity, gas and other utility connections, economic feasibility,
construction suitability, submittals, the parcel map (and any conditions thereto), any survey or
any other matter which was or could have been inspected or examined by Buyer, and Buyer and Seller
shall proceed to Closing, subject to the provisions set forth herein. On or before the Contingency
Expiration Date, the parties may agree on other Service Contracts to be terminated by Seller on or
before Closing. Seller shall terminate only those Service Contracts which the parties agree shall
be terminated and Buyer shall assume, from and after the Closing Date, the obligations arising or
accruing under all of the other Service Contracts. In the event of termination of this Agreement
and within a reasonable period of time after Seller requests such information, Buyer shall deliver
to Seller copies of all third-party reports, plans, studies, applications or any other matters
obtained by or prepared for Buyer in connection with Buyer’s review of the Property and which
relate to the physical condition of the Property, including, without limitation, any engineering
and environmental reports completed and/or obtained by Buyer in connection with Buyer’s review of
the Property. IN ALL EVENTS, BUYER SHALL INDEMNIFY, DEFEND, EXONERATE, HOLD HARMLESS AND SAVE
SELLER AND ITS REPRESENTATIVES FREE FROM AND AGAINST: (i) ANY AND ALL LOSSES, COSTS, DAMAGES,
EXPENSES, LIENS, LIABILITIES, AND CLAIMS IN ANY WAY ARISING OUT OF, OCCASIONED BY OR IN CONNECTION
WITH THE ACCESS, INSPECTIONS AND OTHER EXAMINATIONS CONDUCTED BY BUYER OR ITS REPRESENTATIVES ON,
TO OR WITH RESPECT TO THE PROPERTY (“ACCESS”), WHETHER SUCH ACCESS OCCURRED BEFORE OR AFTER THE
DATE OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY CLAIMS BY A THIRD PARTY ARISING FROM ANY
ACT OR FAILURE TO ACT AUTHORIZED BY BUYER OR ITS REPRESENTATIVES, BUT EXCLUDING ANY PREEXISTING
CONDITIONS (EXCEPT TO THE EXTENT EXACERBATED BY THE ACTIVITIES OF BUYER AND/OR ITS REPRESENTATIVES)
AND EXCLUDING ANY LOSSES ARISING OUT OF THE DISCOVERY OR DISCLOSURE OF THE PROPERTY’S CONDITION;
(ii) ANY DAMAGE OR INJURY TO PERSON OR PROPERTY CAUSED BY BUYER AND/OR ITS REPRESENTATIVES; AND
(iii) ALL COSTS AND EXPENSES, INCLUDING ATTORNEY’S FEES, INCURRED BY SELLER AS A RESULT OF THE
FOREGOING. WITHOUT LIMITING THE FOREGOING, BUYER SHALL, AND SHALL CAUSE ITS

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REPRESENTATIVES TO, KEEP THE PROPERTY FREE AND CLEAR OF ANY MECHANICS’ LIENS OR MATERIALMEN’S LIENS
BEING CLAIMED BY, THROUGH OR UNDER BUYER AND/OR ITS REPRESENTATIVES AND RELATED TO ANY SUCH ACCESS
PRIOR TO THE CLOSING DATE. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, BUYER’S
OBLIGATIONS UNDER THIS PARAGRAPH 8(d) SHALL SURVIVE ANY TERMINATION OF THIS AGREEMENT AND SHALL
SURVIVE CLOSING AND THE DELIVERY OF THE SPECIAL WARRANTY DEED AT CLOSING.

     9. Conditions to the Closing.

          (a) Conditions Precedent to Buyer’s Obligations. The Closing and Buyer’s obligation
to consummate the transactions contemplated by this Agreement and the exhibits attached hereto are
subject to the satisfaction of the following conditions (which can be waived by Buyer):

               (i) Seller’s delivery of the items described in Paragraph 10(a) of this Agreement, not later
than the Closing Date (unless otherwise provided).

               (ii) Title Company’s issuance or irrevocable commitment to issue on or before the Closing
Date, a standard form Owner’s Policy of Title Insurance (the “Title Policy”, as further defined in
Paragraph 8(a) of this Agreement), in the amount of the Purchase Price, insuring Buyer as the fee
simple owner of the Real Property to be conveyed hereunder, subject to the Permitted Exceptions.

               (iii) Seller’s representations and warranties contained in this Agreement shall be true and
correct in all material respects as of the Closing, and Seller shall have otherwise performed in
all material respects its obligations under this Agreement which are required to be performed by
Seller prior to the Closing Date.

               (iv) Buyer shall have obtained the Required Consents at least three (3) days prior to Closing;
provided, however, that nothing herein shall relieve Buyer from its obligations with respect to the
Required Consents under this Agreement, including without limitation, under Paragraph 23(h) of this
Agreement.

          (b) Conditions Precedent to Seller’s Obligations. The Closing and Seller’s obligation
to consummate the transactions contemplated by this Agreement and the exhibits attached hereto are
subject to the satisfaction of the following conditions (which can be waived by Seller, with
Limited Partner Consent):

               (i) Buyer’s delivery to Escrow Agent on or before the Closing Date, for disbursement as
provided herein, of the Purchase Price (with credit for the Deposit), plus Buyer’s share of costs
(as set forth in Paragraph 12 of this Agreement), plus or minus prorations (as set forth in
Paragraph 13 of this Agreement) and the other sums, documents and materials described in Paragraph
10(b) of this Agreement.

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               (ii) Buyer’s representations and warranties contained in this Agreement shall be true and
correct in all material respects as of the Closing, and Buyer shall have otherwise performed in all
material respects its obligations under this Agreement which are required to be performed by it
prior to the Closing Date.

               (iii) Buyer shall have provided Seller with a copy of each Required Consent at least three (3)
days prior to Closing.

               (iv) The Housing Authority shall have provided any required consents or approvals of the
transaction contemplated by this Agreement.

               (v) Seller’s mortgage lender shall have provided any required consents or approvals of the
transaction contemplated by this Agreement. If the Close of Escrow does not occur due to the
failure of the condition set forth in this Paragraph 9(b)(v), then Buyer shall receive a refund of
the Deposit and the other provisions of Paragraph 9(c) of this Agreement shall govern.

          (c) Failure of Conditions to Closing. If any of the conditions set forth in
Paragraphs 9(a) or 9(b) of this Agreement are not timely satisfied or waived, or if this Agreement
is otherwise terminated in accordance with the terms of this Agreement with reference to the
provisions of this Paragraph 9(c), then:

               (i) This Agreement and the rights and obligations of Buyer and Seller hereunder shall
terminate, and this Agreement shall be of no further force or effect, except for those matters
which, by the express terms of this Agreement, survive the termination of this Agreement; and

               (ii) All documents deposited by Buyer shall be promptly returned by or through Escrow Agent to
Buyer, and all documents deposited by Seller shall be promptly returned by or through Escrow Agent
to Seller; and

               (iii) Except in the event that either Buyer or Seller is in default under this Agreement (in
which case the provisions of Paragraph 20 of this Agreement shall apply) or in the event that
Seller has an outstanding claim for indemnification under the terms of this Agreement (in which
case Escrow Agent shall hold the Deposit and disburse the same as mutually agreed by Buyer and
Seller, with Limited Partner Consent), all funds held by Escrow Agent for the benefit of Buyer
(including, without limitation, the Deposit) shall be promptly delivered by Escrow Agent to Buyer,
and all funds held by Escrow Agent for the benefit of Seller shall be promptly delivered by Escrow
Agent to Seller, less, in each case, the amount of any fees and expenses required to be paid by
such party under Paragraph 9(d) of this Agreement.

          (d) Fees and Expenses. If this Agreement terminates because of the non-satisfaction
of any condition to Closing, the fees and expenses of the Escrow Agent and/or the Title Company
shall be borne one-half (1/2) by Seller and one-half (1/2) by Buyer (except in the event that
either Buyer or Seller are in default under this Agreement, in which case the defaulting party
shall pay the entire amount of such fees and expenses).

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     10. Deliveries to Escrow Agent.

          (a) Seller’s Deliveries. Seller hereby covenants and agrees to deliver or cause to be
delivered to Escrow Agent, in the number of original counterparts requested by Escrow Agent, on or
before the Closing Date the following instruments and documents, the delivery of each of which
shall be a condition to Closing:

               (i) Special Warranty Deed. The Special Warranty Deed, duly executed and acknowledged
by Seller.

               (ii) Non-Foreign Certificate. A Non-Foreign Certificate, duly executed by Seller (or,
where appropriate, Seller’s parent entity) in the form of Exhibit “C” attached hereto.

               (iii) Lease Assignment. The Lease Assignment, duly executed by Seller.

               (iv) General Assignment. The General Assignment, duly executed by Seller.

               (v) Proof of Authority. Such proof of Seller’s authority and authorization to enter
into this Agreement and the documents to be executed and delivered in connection herewith, and the
transactions contemplated hereby and thereby, and such proof of the power and authority of the
individual(s) executing and/or delivering any instruments, documents or certificates on behalf of
Seller to act for and bind Seller as may be reasonably required by Title Company.

               (vi) Seller’s Settlement Statement. A statement setting forth the Purchase Price and
all prorations, adjustments, debits and credits pursuant to the terms of this Agreement, duly
executed by Seller.

               (vii) Rent Roll. An updated rent roll dated within ten (10) business days prior to
the Closing.

               (viii) Housing Authority Documents. Any and all documents reasonably required of
Seller by the Housing Authority in connection with the Required Consents, duly executed by Seller;
provided, however, that Seller shall not be obligated to incur any cost, expense or liability in
connection therewith.

          (b) Buyer’s Deliveries. Buyer hereby covenants and agrees to deliver or cause to be
delivered to Escrow Agent, in the number of original counterparts requested by Escrow Agent, on or
before the Closing Date the following instruments, documents and funds, the delivery of each of
which shall be condition to Closing:

14

 

               (i) Purchase Price. The entire Purchase Price in accordance with the provisions of
Paragraph 4 of this Agreement.

               (ii) Costs; Prorations; Cash Balance. Buyer’s share of costs and expenses as adjusted
by the net adjustments, credits, prorations and other amounts due hereunder.

               (iii) Lease Assignment. The Lease Assignment duly executed by Buyer.

               (iv) General Assignment. The General Assignment duly executed by Buyer.

               (v) Tenant Notice Letter. A sample Tenant Notice Letter duly executed by Buyer or
Buyer’s management company, which can be delivered to Tenants by either Seller or Buyer.

               (vi) Housing Authority Documents. Any and all documents required of Buyer by the
Housing Authority, duly executed by Buyer.

               (vii) Proof of Authority. Such proof of Buyer’s authority and authorization to enter
into this Agreement and the documents to be executed and delivered in connection herewith, and the
transactions contemplated hereby and thereby, and such proof of the power and authority of the
individual(s) executing and/or delivering any instruments, documents or certificates on behalf of
Buyer to act for and bind such entity as may be reasonably required by Title Company.

               (viii) Buyer’s Settlement Statement. A statement setting forth the Purchase Price and
all prorations, adjustments, debits and credits pursuant to the terms of this Agreement, duly
executed by Buyer.

          (c) Other Required Documents. In addition, Buyer and Seller agree to execute such
other instruments and documents as may be reasonably required in order to consummate the
transactions contemplated in this Agreement and the exhibits attached hereto; provided,
however, that such other instruments and documents are consistent with the terms hereof and
thereof and are customarily executed and/or delivered in similar transactions. The obligations set
forth in this Paragraph 10(c) of this Agreement shall survive Closing and the delivery of the
Special Warranty Deed at Closing.

     11. Title Insurance. At the Closing, the Escrow Agent shall direct the Title Company
to issue the Title Policy to Buyer in the amount of the Purchase Price, as described in Paragraph
9(a)(ii) of this Agreement. In the event that Buyer desires to obtain (with respect to the Real
Property and the Improvements to be conveyed hereunder) an extended coverage owner’s policy of
title insurance (“Extended Coverage Title Policy”) and/or any endorsements (“Endorsements”) to the
Title Policy for the Real Property to be conveyed hereunder, Buyer shall notify Escrow Agent and
Seller within five (5) business days after the Opening of Escrow. Buyer shall be responsible for
the payment of the difference between (a) the cost of an Extended Coverage Title

15

 

Policy, including any and all Endorsements and (b) the cost of a standard form Owner’s Policy of
Title Insurance (“Additional Title Policy Charge”). Buyer shall timely satisfy all additional
requirements of the Title Company to the issuance of the Extended Coverage Title Policy and any
Endorsements. If the Title Company requires a new Survey as a condition to the issuance of an
Extended Coverage Title Policy, Buyer shall timely make the necessary arrangements to engage a
surveyor, specify requirements, approve and pay the cost of, and otherwise cause a Survey to be
timely obtained at Buyer’s expense. Any such Survey shall be in a form acceptable to remove the
survey exception(s) from the Title Policy as required by the Title Company and shall otherwise be
in the following form: (i) the Survey shall be made in accordance with the “2005 Minimum Standard
Detail Requirements for ALTA/ACSM Land Title Surveys” as jointly established and adopted by
American Land Title Association and National Society of Professional Surveyors; (ii) the Survey
shall be certified by the surveyor to Seller, Buyer, Buyer’s lender, if any, and the Title Company.
If Buyer obtains a Survey, it shall deliver a copy of the Survey to Seller and Title Company.
Buyer’s ability to obtain the Extended Coverage Title Policy and/or any Endorsements shall not be a
condition to the Closing.

     12. Costs.

          (a) Seller shall pay: (i) all transfer taxes; (ii) one-half (1/2) of all escrow fees and
costs; (iii) any document recording charges to record the Special Warranty Deed; and (iv) Seller’s
share of prorations (as set forth in Paragraph 13 of this Agreement).

          (b) Buyer shall pay: (i) the cost of the Title Policy, including any Additional Title Policy
Charge; (ii) all sales, excise, or similar taxes; (iii) any other document recording charges (i.e.
Buyer’s financing documents, etc.); (iv) one-half (1/2) of all escrow fees and costs; (v) Buyer’s
share of prorations (as set forth in Paragraph 13 of this Agreement); and (vi) all fees and
expenses associated with all consents or other approvals by the Housing Authority of the
transactions contemplated by this Agreement and the exhibits attached hereto. In addition, Buyer
shall pay one hundred percent (100%) of all costs of Buyer’s due diligence, including, without
limitation, all fees due its consultants, advisors and attorneys and all costs and expenses of any
Survey or Phase I or other physical or environmental studies or examinations which Buyer desires to
obtain, and all lenders’ fees related to any financing to be obtained by Buyer.

          (c) Except as otherwise expressly provided for herein, Buyer and Seller shall each pay their
own respective legal and professional fees and fees of other consultants respectively incurred by
each of Buyer and Seller.

          (d) All other costs and expenses shall be allocated between Buyer and Seller in accordance
with the customary practice of the County.

          (e) The terms set forth in this Paragraph 12 shall survive Closing and the delivery of the
Special Warranty Deed at Closing.

     13. Prorations.

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          (a) General. Non-Delinquent Rents, revenues, receivables and other income, if any,
from the Property, and real estate and personal property taxes and the operating expenses described
below affecting the Property shall be prorated as of 11:59 P.M. on the day preceding the Closing.
For purposes of calculating prorations, Buyer shall be deemed to be in title to the Property, and
therefore entitled to the income and responsible for the expenses, for the entire day upon which
the Closing occurs. Seller shall be entitled to all third party reimbursements and payments
(including, without limitation, all Section 8 and similar payments) which relate to the period
prior to the Closing. Buyer shall be entitled to all third party reimbursements and payments
(including, without limitation, all Section 8 and similar payments) which relate to periods on or
after the Closing. Buyer shall use commercially reasonable efforts to collect Non-Delinquent Rents
after the Closing in accordance with its current management practices. If Buyer has not collected
Non-Delinquent Rents with respect to one or more Tenants after using commercially reasonable
efforts attempting to do so for at least sixty (60) days after the Closing, then Seller shall,
within ten (10) business days after Buyer represents and evidences the same to Seller in writing,
refund to Buyer the prorated amount of such Non-Delinquent Rents received by Seller from Buyer on
the Closing relating to such Tenants. Any leasing commissions with respect to Tenants of the
Property as of the Closing shall be the sole responsibility of Seller.

          (b) Taxes and Assessments. All non-delinquent real estate and personal property taxes
and assessments on the Property shall be prorated based on the tax bill for the fiscal year in
which the Closing occurs. If the tax bill for the current fiscal year is not available, then the
proration shall be based on the prior fiscal year’s assessment; and the parties shall reprorate
such real estate and personal property taxes and assessments upon the issuance of the final tax
bill. If after the Closing, any supplemental real estate and personal property taxes and
assessments are assessed against the Property by reason of any event occurring prior to the
Closing, or if there is any refund or other reduction in the taxes or assessed value of the
Property for any period prior to Closing, then Buyer and Seller shall re-prorate the real estate
and personal property taxes and assessments following the Closing. Any delinquent real estate and
personal property taxes and assessments on the Property shall be paid at the Closing from funds
accruing to Seller.

          (c) Delinquent and Past Due Rents. From and after the Closing, Buyer shall use
commercially reasonable efforts to collect, in accordance with its current management practices
(but with no obligation to commence litigation to collect such amounts), any rents or other charges
under the leases which are delinquent (i.e. more than thirty (30) days past due) as of the Closing.
The amounts collected after the Closing from a Tenant shall be applied first to any Non-Delinquent
Rents and other charges due as of the Closing, second to any rents and other charges then due for
any period from and after the Closing, and third to any Past Due Rents (as defined in this
Paragraph 13(c)) as of the Closing in reverse chronological order of the date such amounts became
due. As an incentive to Buyer to attempt to collect delinquent rents due to Seller, Seller agrees
that Buyer may retain twenty-five percent (25%) of the Past Due Rents which are collected by Buyer
after the Closing. For purposes of this Paragraph 13(c), “Past Due Rents” are defined as those
rents or other charges which are, upon the Closing, more than sixty (60) days past due. Past Due
Rents do not include any Section 8 or similar payments, whether delinquent or not. All Section 8
and similar payments shall be prorated in accordance with Paragraph 13(a) of this Agreement.

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          (d) Operating Expenses. All utility service charges for electricity, heat and air
conditioning service, other utilities, taxes (other than real estate and personal property taxes)
such as rental taxes, other expenses incurred in operating the Property that Seller customarily
pays, and any other costs incurred in the ordinary course of business or the management and
operation of the Property shall be prorated on an accrual basis as of the Closing Date. Seller
shall pay all such expenses that accrue prior to the Closing and Buyer shall pay all such expenses
accruing on the Closing and thereafter. To the extent possible, Seller and Buyer shall obtain
billings and meter readings as of the Closing to aid in such prorations.

          (e) Service Contracts. Charges and prepayments under the Service Contracts shall be
prorated on the basis of the periods to which such Service Contracts relate.

          (f) Tenant Deposits and Prepaid Rents. Upon Closing, Seller shall retain any and all
bank accounts, certificates of deposit, or any other cash or Cash Equivalent representing Tenant
Deposits and prepaid rents and Buyer shall be credited and Seller shall be debited with an amount
equal to the amount of the Tenant Deposits and prepaid rents. Upon the Closing, Buyer shall assume
all of Seller’s obligations with respect to the Tenant Deposits and prepaid rents.

          (g) Funds. Buyer shall either (i) cause any person or entity that is holding Funds to
return such Funds to Seller; (ii) pay Seller an amount equal to the amount of the Funds held by
such person or entity, in which case Buyer shall retain such Funds; or (iii) replace the Funds held
by such person or entity, in which case such Funds shall be returned to Seller.

          (h) Rent Ready. Not more than forty-eight (48) hours prior to Closing, a
representative of Buyer and Seller shall conduct an onsite walk-through of the then unoccupied
rental units on the Property to determine whether any of such unoccupied rental units are in “rent
ready” condition. With respect to any rental unit which is vacated on or before five (5) days
prior to the Closing, Seller shall, at Seller’s option, either (i) make such unoccupied rental unit
into a “rent ready” condition, or (ii) provide Buyer with a credit against the Purchase Price due
at Closing, which credit shall be equal to the amount, if any, reasonably required to put said
unoccupied rental units in “rent-ready” condition, provided, however, that such
credit shall not exceed Five Hundred Dollars ($500.00) per unoccupied rental unit. With respect to
any rental unit which is vacated later than five (5) days prior to the Closing, Seller shall have
no responsibility or liability to put such unoccupied rental unit into a “rent ready” condition,
and Seller shall not have to compensate Buyer if such unit is not “rent ready” as of Closing.
“Rent ready” condition shall mean Seller’s current practice of placing units in “rent ready”
condition.

          (i) Method of Proration. All prorations shall be made in accordance with customary
practice in the County, except as expressly provided herein. Such prorations, if and to the extent
known and agreed upon as of the Closing, shall be paid by Buyer to Seller (if the prorations result
in a net credit to Seller) or by Seller to Buyer (if the prorations result in a net credit to
Buyer) by increasing or reducing the cash to be paid by Buyer at the Closing. Any such prorations
not determined or not agreed upon as of the Closing shall be paid by Buyer to Seller, or by Seller
to Buyer, as the case may be, in cash, as soon as practicable following the Closing, but in no
event shall Buyer or Seller have any liability for any claim under this Paragraph 13

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made more than twelve (12) months after the Closing. The terms set forth in this Paragraph 13
shall survive Closing and the delivery of the Special Warranty Deed at Closing.

     14. Disbursements and Other Actions by Escrow Agent. On the Closing Date, Escrow
Agent shall promptly undertake all of the following in the manner indicated in this Paragraph 14:

          (a) Disbursements. Disburse all funds deposited with Escrow Agent by Buyer in payment
of the Purchase Price (and in payment of any adjustments, credits and prorations to be charged to
account of Buyer as set forth in Paragraph 13 of this Agreement) as follows:

               (i) Deduct all items chargeable to the account of Seller pursuant to Paragraph 12 of this
Agreement.

               (ii) Deduct and disburse payment for obligations of Seller pursuant to Paragraph 8(a) of this
Agreement.

               (iii) If, as the result of the adjustments, credits and prorations pursuant to Paragraph 13 of
this Agreement, amounts are to be charged to account of Seller, deduct the total amount of such
charges.

               (iv) Disburse the remaining balance of the Purchase Price (and any adjustments, credits and
prorations) to or at the direction of SHF in immediately available funds.

          (b) Recording. Direct the Title Company to record, the Special Warranty Deed and any
other documents required by the Title Company or which the parties hereto may mutually direct to be
recorded in the official records of the County and obtain conformed copies thereof for distribution
to Buyer and Seller.

          (c) Title Policy. Direct the Title Company to issue the Title Policy to Buyer.

          (d) Delivery of Documents to Buyer. Deliver to Buyer any documents (or copies
thereof) deposited with the Escrow Agent by Seller pursuant hereto.

          (e) Delivery of Documents to Seller. Deliver to Seller any documents (or copies
thereof) deposited with the Escrow Agent by Buyer pursuant hereto.

     15. Seller’s Representations and Warranties. Seller hereby warrants and represents to
Buyer as of the date of this Agreement and as of the Closing Date as follows:

          (a) Seller is a limited partnership duly organized and validly existing under the laws of the
State of Ohio.

          (b) Seller has all requisite corporate, company or partnership power and authority to execute
and deliver this Agreement and to perform its obligations hereunder. The person signing this
Agreement on behalf of Seller has the authority to do so.

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          (c) Upon execution by all parties thereto, this Agreement and all other agreements,
instruments and documents required to be executed or delivered by Seller pursuant hereto have been
or (if and when executed) will be duly executed and delivered by Seller, and are or will be the
legal, valid and binding obligations of Seller, enforceable against Seller in accordance with their
terms, subject only to the effect of bankruptcy, insolvency or similar laws. Other than any
approval of Seller’s mortgage lender and the Required Consents from the Housing Authority and such
consents as shall have been obtained prior to Closing, to Seller’s actual knowledge, there are no
other approvals, authorizations, consents or other actions by or filings which are required to be
obtained or completed by Seller in connection with the execution and delivery of this Agreement or
any of the exhibits attached hereto at Closing, or the sale of the Property or the consummation of
the transactions contemplated hereunder or thereunder.

          (d) The consummation of the transactions contemplated herein and the fulfillment of the terms
hereof will not result in a material breach of any of the material terms or provisions of, or
constitute a material default under, any material agreement or material document to which Seller is
a party or by which it is bound.

          (e) Seller is not a “foreign corporation”, “foreign partnership” or “foreign estate” as those
terms are defined in the Code.

          (f) Seller is not a Prohibited Person.

          (g) To Seller’s actual knowledge, as of the date set forth thereon, (i) the rent roll attached
hereto as Exhibit “H” (“Rent Roll”) lists all existing Tenant Leases related to the Property, and
(ii) the information set forth on the Rent Roll with respect to rent, deposits, delinquencies and
credits is true and correct, except for such inaccuracies which are not material when taken in the
aggregate. To Seller’s actual knowledge, as of the date set forth thereon, (A) the rent roll to be
delivered to Buyer in connection with the Closing will list all then-existing Tenant Leases related
to the Property and (B) the information set forth on such rent roll with respect to rent, deposits,
delinquencies and credits will be true and correct, except for such inaccuracies which are not
material when taken in the aggregate.

          (h) To Seller’s actual knowledge, it has received no written notices during the three (3)
years prior to the date of this Agreement from any federal, state or local governmental authority
of any zoning, safety, building, fire, environmental or health code violations with respect to the
Property which have not been heretofore corrected. To Seller’s actual knowledge, all permits,
licenses and occupancy certificates necessary for the operation and occupancy of the Property have
been obtained. To Seller’s actual knowledge, Seller is in compliance, in all material respects,
with all material state and municipal laws, ordinances and regulations regarding tenant security
deposits and the payment of interest thereon. To Seller’s actual knowledge, there are not
presently any special assessment actions pending or overtly threatened against the Property. To
Seller’s actual knowledge, (i) it has received no written notices from any governmental authority
regarding any claims relating to the presence or use of any Hazardous Materials at the Property in
violation of any applicable law and (ii) except for Hazardous Materials used in the normal
operation of the Property (such as cleaning materials,

20

 

toner, etc.), it has not released any Hazardous Materials on or about the Property in violation of
any applicable law.

          (i) There is no litigation or proceeding (including, but not limited to, condemnation or
eminent domain proceedings, arbitration proceedings or foreclosure proceedings) pending or, to
Seller’s actual knowledge, overtly threatened, against the Property except as disclosed to Buyer.
Seller has not commenced bankruptcy or insolvency proceedings and, to Seller’s actual knowledge,
there are no overtly threatened bankruptcy or insolvency proceedings against Seller or any of its
general partners.

          (j) As used in this Agreement, (i) the phrase “to Seller’s actual knowledge” or words of
similar import means the actual knowledge, without independent inquiry or duty of investigation, of
Hillary B. Zimmerman (who is a senior employee in Seller’s general partner’s organization and is
familiar with the operations of the Property) (notwithstanding anything to the contrary set forth
in this Agreement, the foregoing individual shall not have any personal liability with respect to
any matters set forth in this Agreement or any of Seller’s representations and/or warranties herein
being or becoming untrue, inaccurate or incomplete) but shall not include the knowledge, actual or
implied, of any direct or indirect partner, principal, affiliate, independent contractor,
consultant, property manager, asset manager or agent of Seller, or any employee of any thereof
(i.e. Buyer acknowledges and agrees that the knowledge of any of the foregoing parties, including,
without limitation, the property manager, shall not be imputed to Seller); and (ii) the phrase
“Seller Qualification Matter” means any existing or new item, fact or circumstance which renders a
representation or warranty of Seller set forth herein incorrect or untrue in any material respect.
If, prior to the Closing, to Seller’s actual knowledge, there exists a Seller Qualification Matter,
then Seller shall promptly give written notice thereof to Buyer. If, prior to the Closing, Buyer
has actual knowledge of or is notified in writing of a Seller Qualification Matter by Seller or
otherwise, then (x) Seller’s representations and warranties shall be automatically amended and
limited to account for such Seller Qualification Matter, and (y) Buyer shall have, as Buyer’s sole
and exclusive remedy therefore (unless such matter is cured, in which case Buyer shall have no
remedy therefore), the right to terminate this Agreement prior to Closing by providing written
notice thereof to Seller no later than three (3) business days after Buyer has actual knowledge of
or is notified in writing of such Seller Qualification Matter (in which case the Deposit shall be
returned to Buyer and the other provisions of Paragraph 9(c) of this Agreement shall govern).
Notwithstanding anything herein to the contrary, if Buyer does not timely terminate this Agreement
per the terms of this Paragraph 15(j), then (A) Seller’s representations and warranties shall be
automatically amended and limited to account for such Seller Qualification Matter, (B) Buyer shall
be deemed to have waived Buyer’s right to pursue any remedy for breach of the representation or
warranty made untrue on account of such Seller Qualification Matter and (C) the parties shall
proceed to the Closing.

          (k) Seller shall indemnify and hold Buyer harmless from and against any and all claims,
demands, liabilities, liens, costs, expenses, penalties, damages and losses suffered by Buyer as a
result of any breach of warranty or representation made by Seller in this Paragraph 15 (except as
provided in Paragraph 15(j) of this Agreement); provided, however, that the
representations, warranties and indemnities set forth in this Paragraph 15 shall survive Closing
and the delivery of the Special Warranty Deed at Closing for a period of six (6) months after the

21

 

Closing and in no event shall Seller have any liability under this Paragraph 15 for any claim made
after such period.

     16. Buyer’s Representations and Warranties. Buyer hereby warrants and represents to
Seller as of the date of this Agreement and as of the Closing Date as follows:

          (a) Purchaser is a corporation duly organized and validly existing under the laws of the State
of California. As of the Closing Date, Buyer will be qualified to transact business in the State.

          (b) Buyer has all requisite corporate, company or partnership power and authority to execute
and deliver this Agreement and to perform its obligations hereunder. The person signing this
Agreement on behalf of Buyer has the authority to do so.

          (c) Upon execution by all parties thereto, this Agreement and all other agreements,
instruments and documents required to be executed or delivered by Buyer pursuant hereto have been
or (if and when executed) will be duly executed and delivered by Buyer, and are or will be the
legal, valid and binding obligations of Buyer, enforceable against Buyer in accordance with their
terms, subject only to the effect of bankruptcy, insolvency or similar laws. Other than the
Required Consents from the Housing Authority and such consents as shall have been obtained prior to
Closing, to Buyer’s actual knowledge, there are no other approvals, authorizations, consents or
other actions by or filings which are required to be obtained or completed by Buyer in connection
with the execution and delivery of this Agreement or any of the exhibits attached hereto at
Closing, or the sale of the Property or the consummation of the transactions contemplated hereunder
or thereunder.

          (d) The consummation of the transactions contemplated herein and the fulfillment of the terms
hereof will not result in a material breach of any of the material terms or provisions of, or
constitute a material default under, any material agreement or material document to which Buyer is
a party or by which it is bound.

          (e) Buyer is not a Prohibited Person.

          (f) The written financial information, if any, delivered by Buyer (or any affiliate of Buyer,
or any of their attorneys, accountants, or officers) to Seller, Seller’s general partner or SHF
regarding Buyer is not misleading and is true and correct in all material respects.

          (g) To Buyer’s actual knowledge, there are no actions, suits or proceedings pending or overtly
threatened against Buyer which would prevent Buyer from acquiring the Property in accordance with
the terms of this Agreement.

          (h) Buyer shall indemnify and hold Seller harmless from and against any and all claims,
demands, liabilities, liens, costs, expenses, penalties, damages and losses suffered by Seller as a
result of any breach of warranty or representation made by Buyer in this Paragraph 16;
provided, however, that the representations, warranties and indemnities set forth
in this Paragraph 16 shall survive Closing and the delivery of the Special Warranty Deed at Closing
for

22

 

a period of six (6) months after the Closing and in no event shall Buyer have any liability under
this Paragraph 16 for any claim made after such period.

     17. AS-IS, WHERE IS, AND WITH ALL FAULTS CONDITION.

          (a) Buyer does hereby acknowledge, represent, warrant and agree, to and with Seller, that (i)
Buyer is purchasing the Property in an “AS IS, WHERE IS, AND WITH ALL FAULTS” condition with
respect to any facts, circumstances, conditions and defects of all kinds; (ii) Seller has no
obligation to repair or correct any such facts, circumstances, conditions or defects or compensate
Buyer for same; (iii) Buyer is and will be relying strictly and solely upon the advice and counsel
of its own agents and officers and such physical inspections, examinations and tests of the
Property as Buyer deems necessary or appropriate under the circumstances, and Buyer is and will be
fully satisfied that the Purchase Price is fair and adequate consideration for the Property; (iv)
Buyer has had and will have, pursuant to this Agreement, an adequate opportunity to make such
legal, factual and other inquiries and investigations as Buyer deems necessary, desirable or
appropriate with respect to the Property; (v) except as otherwise expressly provided in this
Agreement, Seller is not making and has not made any warranty or representation with respect to the
Property as an inducement to Buyer to enter into this Agreement and thereafter to purchase the
Property, or for any other purpose; and (vi) by reason of all of the foregoing, from and after the
Closing, Buyer shall assume the full risk of any loss or damage occasioned by any fact,
circumstance, condition or defect pertaining to the physical and other conditions of the Property
and/or the operation of the Property, regardless of whether the same is capable of being observed
or ascertained.

          (b) EXCEPT AS EXPRESSLY SET FORTH IN PARAGRAPH 15 OF THIS AGREEMENT, SELLER HAS NOT, DOES NOT
AND WILL NOT, WITH RESPECT TO THE PROPERTY, MAKE ANY REPRESENTATIONS, EXPRESS OR IMPLIED, OR
ARISING BY OPERATION OF LAW, INCLUDING, BUT IN NO WAY LIMITED TO, ANY WARRANTY OF CONDITION OR
MERCHANTABILITY, OR WITH RESPECT TO THE VALUE, PROFITABILITY OR OPERATING POTENTIAL OF THE
PROPERTY.

          (c) Except with respect to actions arising from a breach by Seller of its express
representations and warranties contained in Paragraph 15 of this Agreement, notwithstanding any
provision of this Agreement and the exhibits attached hereto to the contrary, Buyer hereby releases
Seller from any liability, claims, damages, penalties, costs, fees, charges, losses, causes of
action, demands, expenses of any kind or nature or any other claim it has or may have against
Seller resulting from the presence, removal or other remediation of “Hazardous Materials” (as
hereinafter defined) on or under the Real Property or which has migrated from adjacent lands to the
Real Property or from the Real Property to adjacent lands.

          (d) The term “Hazardous Materials” shall mean asbestos, any petroleum fuel and any hazardous
or toxic substance, material or waste which is or becomes regulated by any local governmental
authority, the state where the Property is located or the United States Government, including, but
not limited to, any material or substance defined as a “hazardous waste,” “extremely hazardous
waste,” “restricted hazardous waste,” “hazardous substance,”

23

 

“hazardous material” or “toxic pollutant” under state law and/or under the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601, et seq.

          (e) BUYER AGREES THAT, IF AT ANY TIME AT OR AFTER CLOSING, A CONDOMINIUM MAP, DECLARATION OF
CONDOMINIUM OWNERSHIP OR OTHER DEVICE FOR THE PURPOSE OF CREATING FRACTIONALIZED OWNERSHIP IS MADE
EFFECTIVE WITH RESPECT TO THE PROPERTY (BY BUYER OR ANY AFFILIATE THEREOF), BUYER WILL INDEMNIFY,
DEFEND AND HOLD HARMLESS SELLER AND EACH OF ITS DIRECT AND INDIRECT PARTNERS AND PRINCIPALS AND
THEIR RESPECTIVE AFFILIATES (INCLUDING ANY CONTRACTOR) FROM AND AGAINST ANY CLAIM MADE BY ANY OWNER
OR OCCUPANT OF A RESIDENTIAL UNIT IN THE PROPERTY OR ANY OWNERS’ ASSOCIATION OR SIMILAR ENTITY
ACTING ON BEHALF OF UNIT OWNERS, AS WELL AS ALL RELATED LOSS, DAMAGE, LIABILITY, OBLIGATION, SUIT,
CAUSE OF ACTION, JUDGMENT, SETTLEMENT, PENALTY, FINE OR COST OR EXPENSE (INCLUDING FEES AND
DISBURSEMENTS OF ATTORNEYS AND OTHER PROFESSIONALS AND COURT COSTS). BUYER’S OBLIGATIONS UNDER
THIS PARAGRAPH SHALL APPLY REGARDLESS OF THE BASIS OF A CLAIM, AND SHALL EXTEND TO, AMONG OTHERS,
CLAIMS BASED ON NEGLIGENCE ON THE PART OF SELLER OR ITS AFFILIATES (INCLUDING CONTRACTOR) OR ANY
WARRANTY, INCLUDING WARRANTIES OF HABITABILITY, MERCHANTABILITY, WORKMANLIKE CONSTRUCTION AND
FITNESS FOR USE OR ACCEPTABILITY FOR THE INTENDED PURPOSE. NOTHING HEREIN SHALL PERMIT BUYER TO
TAKE ANY ACTION WHICH CONFLICTS WITH PARAGRAPH 23 OF THIS AGREEMENT.

          (f) The provisions of this Paragraph 17 shall survive any termination of this Agreement and
shall survive Closing and the delivery of the Special Warranty Deed at Closing.

     18. Closing. The purchase and sale of the Property shall be consummated (the
“Closing”) on or before the thirtieth (30th) day after the later of (x) the date Buyer
and/or Seller obtains all Required Consents (each party shall promptly notify each other party to
this Agreement and the Escrow Agent upon receipt of same) and (y) the Contingency Expiration Date,
but in no event shall the Closing occur later than April 12, 2011 (the “Outside Closing Date”),
time being of the essence. The Closing shall take place at the offices of the Escrow Agent, or via
an escrow administered by the Escrow Agent pursuant to escrow instructions mutually agreed upon
among the parties and consistent with the terms of this Agreement. Buyer is entitled to extend the
Outside Closing Date for a period of up to thirty (30) days following the Outside Closing Date as
originally set forth in the first sentence of this Paragraph 18; provided, however,
that Seller and Escrow Agent shall receive written notice (the “Extension Notice”) of Buyer’s
election to extend the Outside Closing Date on or before five (5) business days prior to the
Outside Closing Date set forth in the first sentence of this Paragraph 18. Seller is entitled to
extend the Outside Closing Date for a period of up to thirty (30) days following the Outside
Closing Date set forth in the first sentence of this Paragraph 18 (or following such later date as
Buyer may have extended such date pursuant to a valid Extension Notice) by providing written notice
thereof to Buyer and Escrow Agent on or before three (3) days prior to such Outside Closing Date.

24

 

     19. Notices. All notices or other communications required or permitted hereunder
shall be in writing, and shall be personally delivered (including by means of professional
messenger service) or sent by registered or certified mail, postage prepaid, return receipt
requested, or by a nationally recognized overnight courier service that provides tracing and proof
of receipt of items mailed or by facsimile transmission followed by delivery of a hard copy. Such
notices or other communications shall be deemed received: (1) if personally delivered, when so
personally delivered, (2) if sent by mail, two business days after deposited with the United States
postal service, (3) if sent by overnight courier service, the business day after deposited with
such service or (4) if sent by facsimile, when transmitted (with proof of transmission).

	 	 	 

	To Seller:

	 	Arbor Pointe, L.P.
	 

	 	c/o McCormack Baron Salazar, Inc.
	 

	 	720 Olive Street, Suite 2500
	 

	 	St. Louis, Missouri 63101
	 

	 	Attn: Hillary Zimmerman
	 

	 	Fax No.: (314) 335-2891
	 
	 	 
	With a copy to:

	 	SunAmerica Affordable Housing Partners
	 

	 	1 SunAmerica Center, 36th Floor
	 

	 	Los Angeles, California 90067-6022
	 

	 	Attn: Thomas Musante
	 

	 	Fax: (310) 772-6794
	 
	 	 
	And with a copy to:

	 	Bouza, Klein & Kaminsky
	 

	 	950 S. Flower Street, Suite 100
	 

	 	Los Angeles, California 90015
	 

	 	Attn: Joseph S. Klein, Esq.
	 

	 	Fax: (213) 488-1316
	 
	 	 
	To Buyer:

	 	Steadfast Asset Holdings, Inc.
	 

	 	18100 Von Karman, Suite 500
	 

	 	Irvine, California 92612
	 

	 	Attn: Ana Marie del Rio, Esq.
	 

	 	Fax No.: (949) 852-0143
	 
	 	 
	With a copy to:

	 	Katten Muchin Rosenman LLP
	 

	 	2900 K Street NW, North Tower — Suite 200
	 

	 	Washington, DC 20007-5118
	 

	 	Attn: Virginia Davis, Esq.
	 

	 	Fax: (202) 298-7570
	 
	 	 
	To Escrow Agent:

	 	Chicago Title Insurance Company
	 

	 	2001 Bryan Street, Suite 1700
	 

	 	Dallas, Texas 75201
	

	 	Attn: Shannon Bright
	

	 	Fax: (214) 965-1627

25

 

     Notice of change of address shall be given by written notice in the manner detailed in this
Paragraph 19.

     20. Default. If either party defaults in its obligation to complete the transaction
contained in this Agreement, the parties agree to the following remedies:

          (a) Breach by Seller. IN THE EVENT THE CLOSING AND THE CONSUMMATION OF THE
TRANSACTIONS HEREIN CONTEMPLATED DO NOT OCCUR AS HEREIN PROVIDED BY REASON OF A BREACH OF ANY OF
THE TERMS OF THIS AGREEMENT BY SELLER, WHICH BREACH IS NOT CURED WITHIN TEN (10) BUSINESS DAYS
AFTER SELLER RECEIVES WRITTEN NOTICE THEREOF FROM BUYER, SUCH BREACH SHALL CONSTITUTE A DEFAULT
UNDER THIS AGREEMENT AND BUYER SHALL BE ENTITLED TO TERMINATE THIS AGREEMENT AND BE RELEASED FROM
ITS OBLIGATION TO PURCHASE THE PROPERTY FROM SELLER. IN THE EVENT OF TERMINATION OF THIS AGREEMENT
UNDER THIS PARAGRAPH 20(a), BUYER SHALL, AS BUYER’S SOLE AND EXCLUSIVE REMEDY THEREFORE, BE
ENTITLED TO A REFUND OF THE DEPOSIT AND TO RECOVER BUYER’S REASONABLE AND ACTUAL OUT-OF-POCKET
COSTS (DOCUMENTED BY PAID INVOICES TO THIRD PARTIES) INCURRED WITH RESPECT TO THIS AGREEMENT, THE
TRANSACTION DESCRIBED HEREIN AND THE DUE DILIGENCE PERFORMED IN CONNECTION HEREWITH, NOT TO EXCEED
$150,000.00 IN THE AGGREGATE. EXCEPT AS SET FORTH IN THIS PARAGRAPH 20(a), BUYER SHALL HAVE NO
RIGHT TO RECEIVE ANY EQUITABLE RELIEF. BUYER EXPRESSLY WAIVES ANY RIGHT UNDER THE LAW OF THE STATE
OR AT COMMON LAW OR OTHERWISE TO RECORD A LIS PENDENS OR A NOTICE OF PENDENCY OF ACTION OR SIMILAR
NOTICE AGAINST ALL OR ANY PORTION OF THE PROPERTY IN CONNECTION WITH ANY ALLEGED DEFAULT BY SELLER
HEREUNDER. NOTWITHSTANDING THE FOREGOING, IF SELLER SHALL BREACH THIS AGREEMENT SOLELY BY FAILING
TO DELIVER ANY OF THE DOCUMENTS SET FORTH IN PARAGRAPH 10(a) OF THIS AGREEMENT AND BUYER HAS TIMELY
PERFORMED ALL OF ITS COVENANTS AND CONDITIONS UNDER THE TERMS OF THIS AGREEMENT (INCLUDING, WITHOUT
LIMITATION, DEPOSITING THE PURCHASE PRICE INTO ESCROW) AND IS OTHERWISE PREPARED TO CLOSE THIS
TRANSACTION, THEN, AND ONLY THEN, BUYER SHALL BE ENTITLED TO ELECT THE ALTERNATIVE REMEDY OF
SPECIFIC PERFORMANCE. THE FOREGOING OPTIONS ARE MUTUALLY EXCLUSIVE AND ARE THE SOLE AND EXCLUSIVE
RIGHTS AND REMEDIES AVAILABLE TO BUYER AT LAW OR IN EQUITY IN THE EVENT OF A SELLER BREACH OF OR
DEFAULT UNDER THIS AGREEMENT PRIOR TO THE CLOSING. NOTWITHSTANDING THE FOREGOING, BUYER SHALL BE
CONCLUSIVELY AND IRREVOCABLY DEEMED TO WAIVED THE REMEDY OF SPECIFIC PERFORMANCE IF BUYER FAILS TO
FILE SUIT FOR SPECIFIC PERFORMANCE AGAINST SELLER IN A COURT HAVING JURISDICTION IN THE COUNTY AND
STATE IN WHICH THE PROPERTY IS LOCATED ON OR BEFORE SIXTY

26

 

(60) DAYS FOLLOWING THE OUTSIDE CLOSING DATE OR EARLIER DATE UPON WHICH THE CLOSING WAS TO HAVE
OCCURRED.

          (b) Breach by Buyer. IN THE EVENT THE CLOSING AND THE CONSUMMATION OF THE
TRANSACTIONS HEREIN CONTEMPLATED DO NOT OCCUR AS HEREIN PROVIDED BY REASON OF A BREACH OF ANY OF
THE TERMS OF THIS AGREEMENT BY BUYER, WHICH BREACH IS NOT CURED WITHIN TEN (10) BUSINESS DAYS AFTER
BUYER RECEIVES WRITTEN NOTICE THEREOF FROM SELLER OR SHF, SUCH BREACH SHALL CONSTITUTE A DEFAULT
UNDER THIS AGREEMENT AND SELLER SHALL BE RELEASED FROM ITS OBLIGATION TO SELL THE PROPERTY TO
BUYER. BUYER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE THE
DAMAGES WHICH SELLER MAY SUFFER AS A RESULT OF SUCH BREACH. THEREFORE BUYER AND SELLER DO HEREBY
AGREE THAT A REASONABLE ESTIMATE OF THE TOTAL NET DETRIMENT THAT SELLER WOULD SUFFER IN THE EVENT
THAT BUYER DEFAULTS AND FAILS TO COMPLETE THE PURCHASE OF THE PROPERTY IS AND SHALL BE, AS SELLER’S
SOLE AND EXCLUSIVE REMEDY (WHETHER AT LAW OR IN EQUITY), THE AMOUNT OF THE DEPOSIT. SAID AMOUNT
SHALL BE THE FULL, AGREED AND LIQUIDATED DAMAGES FOR THE BREACH OF OR DEFAULT UNDER THIS AGREEMENT
BY BUYER, ALL OTHER CLAIMS TO DAMAGES OR OTHER REMEDIES BEING HEREIN EXPRESSLY WAIVED BY SELLER.
BUYER HEREBY AUTHORIZES AND INSTRUCTS ESCROW AGENT TO DISBURSE THE DEPOSIT TO SELLER THIRTY (30)
DAYS FOLLOWING NOTICE OF A BREACH AS SET FORTH IN THIS PARAGRAPH 20(b) UNLESS (i) SELLER (WITH
LIMITED PARTNER CONSENT) AND BUYER OTHERWISE AGREE IN WRITING OR (ii) BUYER OBTAINS THE ORDER OF A
COURT OF COMPETENT JURISDICTION PREVENTING ESCROW AGENT FROM MAKING SUCH DISBURSEMENT. THE PAYMENT
OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING
OF THE LAW OF THE STATE, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO THE
LAW OF THE STATE. UPON DEFAULT BY BUYER, THIS AGREEMENT SHALL BE TERMINATED AND NEITHER PARTY
SHALL HAVE ANY FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EXCEPT FOR THE RIGHT OF SELLER TO COLLECT
SUCH LIQUIDATED DAMAGES FROM BUYER AND ESCROW AGENT AND EXCEPT FOR THOSE MATTERS WHICH, BY THE
EXPRESS TERMS OF THIS AGREEMENT, SURVIVE THE TERMINATION OF THIS AGREEMENT. NOTWITHSTANDING
ANYTHING CONTAINED HEREIN TO THE CONTRARY, SELLER’S RIGHT TO OBTAIN LIQUIDATED DAMAGES SHALL IN NO
EVENT LIMIT SELLER’S RIGHT TO ENFORCE AND COLLECT UPON ANY INDEMNIFICATION RIGHTS AFFORDED UNDER
THIS AGREEMENT.

	 	 	 	 	 	 	 

	 

	 	DD
	 	 
	 	HBZ
	 

	 	 
	 	 	 	 
	 

	 	PURCHASER’S INITIALS
	 	 
	 	SELLER’S INITIALS

     21. Damage, Destruction or Condemnation. If prior to the Closing, there occurs any
destruction of or damage or loss to the Property or any portion thereof from any cause whatsoever,
including, but not limited to, any flood, accident or other casualty which, according

27

 

to Seller’s good faith estimate (the “Estimate”), would cost, with respect to the Property, more
than the Threshold Amount to repair, or any condemnation proceedings are commenced or overtly
threatened which would involve the taking of any portion of the Property valued at more than the
Threshold Amount, then Buyer shall have the right, exercisable by delivering written notice to
Seller and Escrow Agent within ten (10) days after Buyer’s receipt of Seller’s written Estimate of
the amount of such cost or the scope of any taking, to either (a) terminate this Agreement, in
which case the Deposit shall be returned to Buyer and the other provisions of Paragraph 9(c) of
this Agreement shall govern, or (b) accept the Property in its then condition and proceed with the
Closing, in which case Buyer shall receive a credit against the Purchase Price equal to the amount
of the deductible under Seller’s insurance policies (to the extent not satisfied by Seller prior to
Closing), and Seller shall assign to Buyer its rights to any insurance proceeds or condemnation
award received as a result of such event. Buyer’s failure to deliver such notice within the time
period specified shall be deemed to constitute Buyer’s election to terminate this Agreement. In
the event the Estimate of the cost of repair or the amount of the taking, with respect to the
Property, is less than or equal to the Threshold Amount, then Buyer shall not have the option to
terminate this Agreement, and the parties shall proceed to the Closing, in which case Buyer shall,
(x) in the event of a casualty to the Property, receive a credit against the Purchase Price equal
to the amount of the deductible under Seller’s insurance policies (to the extent not satisfied by
Seller prior to Closing) (or the Estimate amount if such casualty is not covered by Seller’s
insurance policy), and Seller shall assign to Buyer its rights to any insurance proceeds received
as a result of such event and (y) in the event of a condemnation relating to the Property, Seller
shall assign to Buyer its rights to any condemnation award received as a result of such event.

     22. Brokerage. Buyer and Seller warrant that they have had no dealings with any real
estate brokers in connection with the transaction set forth herein other than Broker. Seller shall
pay Broker a commission pursuant to a separate agreement. Seller shall not be responsible for any
commissions, finder’s fees or similar compensation to any other broker or similar person. Buyer
shall have the right, but not the obligation, to utilize the services of a real estate broker other
than Broker; provided, however, that Buyer shall be solely responsible for the
payment of any and all commissions, finder’s fees or similar compensation to such broker that Buyer
might employ. Seller and Buyer each warrant to the other that, except for the Broker, neither has
dealt with or engaged any other brokers, realtors, finders or agents in connection with the
negotiation of this Agreement. Seller and Buyer shall defend, indemnify and hold each other
harmless from any cost or liability for any compensation, commission or charges claimed by any
other brokers, realtors, finders or agents claiming by, through or on behalf of the respective
indemnitor. This covenant shall survive any termination of this Agreement and shall survive
Closing and the delivery of the Special Warranty Deed at Closing.

     23. Tax Credits.

          (a) Tax Credits and Affordability Requirements. Seller acquired, developed, owned and
operated the Property as a project intended to generate tax credits (“Tax Credits”), including,
without limitation, low-income housing tax credits under Section 42 of the Code and the Treasury
Regulations promulgated thereunder (collectively, “Section 42”). The Property is subject to
regulatory and other agreements recorded against the Real Property and relating to

28

 

income, rent or other affordable housing restrictions (collectively referred to as the “Regulatory
Agreements”). In order to maintain and preserve the Tax Credits, the Property must be operated in
compliance with the Regulatory Agreements and all applicable rules, procedures, regulations,
guidelines and other requirements under Section 42 and all other applicable federal, state or local
affordable housing laws, regulations and other requirements relating to the Property (collectively,
the “Tax Credit Laws”). Buyer acknowledges that the failure to operate the Property in compliance
with the Regulatory Agreements and Tax Credit Laws may cause the recapture (and/or related
liability) of all or a portion of such Tax Credits and/or result in other significant damages and
economic loss related to the Tax Credits.

          (b) Covenants. Buyer hereby covenants to Seller that, from and after Closing, Buyer,
at its sole cost and expense and for the duration of all applicable time periods, shall (x) assume,
undertake and cause to be performed all of the obligations under the Regulatory Agreements and the
Tax Credit Laws applicable to the Property, including, without limitation, all ownership and
operating restrictions and all tenant qualification and rent restrictions applicable to the
Property, and (y) make timely, accurate and complete submissions of all reports to governmental
agencies and any other reports reasonably required to be delivered with respect to the Property
pursuant to the Tax Credit Laws, the Regulatory Agreements and any other documents or regulations
related to the Tax Credits (including, without limitation, any applicable Housing Authority
monitoring requirements). Upon Seller’s reasonable request, Buyer shall deliver to Seller copies
of any back-up or supporting documentation in Buyer’s possession or control relating to any
obligation of Buyer under this Paragraph 23.

          (c) Indemnification. As a material inducement for Seller to enter into this
Agreement, Buyer hereby agrees to indemnify and hold Seller and its direct and indirect partners,
principals, affiliates, and all of their respective employees, agents and asset managers
(collectively, the “Seller Indemnified Parties”) free and harmless from: (i) the amount of any
recapture of any Tax Credits; (ii) any penalties, interest or other claims by the IRS or any other
governmental agency in connection with the Tax Credits; and (iii) any liabilities, claims, damages,
penalties, costs, fees, charges, losses, causes of action, demands, and expenses of any kind or
nature, including attorneys’ and accountants’ fees (collectively “Losses”), which Losses are
related to, arise out of or are in any way connected with (A) the breach of any of the covenants in
this Paragraph 23; (B) the violation of any Regulatory Agreement; or (C) any failure to maintain
ownership, use and operation of the Property in accordance with the Tax Credit Laws;
provided, however, that the indemnity set forth in this Paragraph 23(c) shall not
apply to any Prior Noncompliance to the extent provided in Paragraph 23(f) of this Agreement.

          (d) Further Covenants. Notwithstanding anything to the contrary contained herein,
following any sale, transfer or other conveyance of any or all of the interests in the Property,
directly or indirectly, Buyer shall remain directly liable to the Seller Indemnified Parties and
shall not be released from any obligations to the Seller Indemnified Parties under this Paragraph
23, whether accruing before or after the date of such sale, transfer or other conveyance.

          (e) [reserved]

29

 

          (f) Prior Non-Compliance. Except as otherwise set forth in this Paragraph 23, Buyer
shall have no obligations or liabilities to the Seller Indemnified Parties, whether to indemnify,
perform covenants, or to pay any damages, costs, or expenses, with respect to any noncompliance
with any Regulatory Agreement or with the Tax Credit Laws, to the extent such noncompliance
occurred prior to Closing (“Prior Noncompliance”). Buyer shall promptly notify Seller of any Prior
Noncompliance of which it becomes aware. Notwithstanding anything to the contrary set forth
herein, Buyer agrees to reasonably cooperate and/or jointly undertake with Seller, at Seller’s
expense, any corrective action Seller determines is necessary to remedy the Prior Noncompliance or
to mitigate Seller’s liability with respect thereto, including, without limitation, allowing Seller
and its Representatives to have access to the Property and the Property files and to communicate
directly with the tenants and other appropriate persons as to any such matters.

          (g) Covenant Regarding Change of Status. Buyer hereby covenants that it shall not,
prior to Closing, contact any federal, state or local governmental or quasi-governmental authority,
tenant, tenant association, tenant’s rights group, or similar person or organization, regarding the
feasibility or possibility of changing the status of the Property from an affordable housing
project as currently operated, or modifying any Regulatory Agreement, whether any such change would
occur prior to or after the expiration of the Tax Credits, or in any way indicate the intention to
do the same. Any breach of this covenant by Buyer, whether occurring before or after the date of
this Agreement, shall constitute a default hereunder by Buyer, in which event Seller (with Limited
Partner Consent) may elect to terminate this Agreement by delivering notice to Buyer and Escrow
Agent of such election, whereupon this Agreement shall be terminated and the Deposit shall be
retained by Seller (and the other provisions of Paragraphs 9(c) and 20(b) of this Agreement shall
govern).

          (h) Regulatory Approval.

               (i) Buyer’s Obligations. In connection with all Required Consents, including, without
limitation, the consent and approval of the Housing Authority, Buyer covenants to timely: (x) pay
all fees and costs required by the Housing Authority in connection with such consents and
approvals; and (y) deliver all documents, certifications, information, representations, agreements
and other materials reasonably required to obtain such Required Consents. Buyer shall timely (and
in any event within fifteen (15) days after the Opening of Escrow) file all applications required
by the Housing Authority for its consent and approval to the transactions contemplated herein and
shall promptly respond to all additional requests of the Housing Authority for additional
information. Buyer shall use its good faith and commercially reasonable efforts to timely obtain
all Required Consents. Buyer shall keep Seller timely informed of the consent process and the
status of its efforts. Seller shall reasonably cooperate with Buyer’s efforts to obtain the
Required Consents but Seller shall not be obligated to incur any cost, expense or liability in so
doing and Buyer shall indemnify Seller as set forth in Paragraph 7(d) of this Agreement in
connection with such efforts.

               (ii) Failure to Obtain Consent. In the event all Required Consents have not been
obtained at least two (2) days prior to the Outside Closing Date (as the same may

30

 

be extended in accordance with the terms of Paragraph 18 hereof), this Agreement shall be
terminated (in which case the provisions of Paragraph 9(c) of this Agreement shall govern).

          (i) Third Party Beneficiary. The provisions of this Paragraph 23 shall inure to the
benefit of both Seller and SHF (which is expressly made a third party beneficiary of this Agreement
and the exhibits attached hereto, with the right to take direct action hereon and to exercise any
rights or remedies afforded to Seller hereunder), and each of their respective successors and
assigns, and shall bind the heirs, executors, administrators, successors and assigns of Buyer.

          (j) Survival. The provisions of this Paragraph 23 shall survive Closing and the
delivery of the Special Warranty Deed at Closing.

     24. Miscellaneous.

          (a) Partial Invalidity. If any term or provision of this Agreement or the exhibits
attached hereto or the application thereof to any person or circumstance shall, to any extent, be
invalid or unenforceable, the remainder of this Agreement and the exhibits attached hereto, or the
application of such term or provision to persons or circumstances other than those as to which it
is held invalid or unenforceable, shall not be affected thereby, and each such term and provision
of this Agreement and the exhibits attached hereto shall be valid and shall be enforced to the
fullest extent permitted by law.

          (b) No Waivers. No waiver of any breach of any covenant or provision herein contained
shall be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant or
provision herein contained. No extension of time for performance of any obligation or act shall be
deemed an extension of the time for performance of any other obligation or act.

          (c) Successors and Assigns. This Agreement and the exhibits attached hereto shall be
binding upon and shall inure to the benefit of the permitted successors and assigns of the parties
hereto.

          (d) Entire Agreement. This Agreement (including all exhibits attached hereto) is the
final expression of, and contains the entire agreement among, the parties with respect to the
subject matter hereof and supersedes all prior understandings with respect thereto. Neither this
Agreement nor any of the other documents to be executed hereunder may be modified, changed,
supplemented or terminated, nor may any obligations hereunder or thereunder be waived, except by
written instrument signed by the party to be charged (and in the event Seller is to be charged,
with Limited Partner Consent) or as otherwise expressly permitted herein. The parties do not
intend to confer any benefit hereunder on any person, firm or corporation other than the parties
hereto and their permitted successors and assigns.

          (e) Time of Essence. The parties hereby acknowledge and agree that time is strictly
of the essence with respect to each and every term, condition, obligation and provision of this
Agreement and that failure to timely perform any of the terms, conditions, obligations or

31

 

provisions of this Agreement by either party shall constitute a material breach of and a
non-curable (but waivable in accordance with Paragraph 24(d) of this Agreement) default under this
Agreement by the party so failing to perform.

          (f) Construction. Headings at the beginning of each paragraph and subparagraph are
solely for the convenience of the parties and are not a part of this Agreement. Whenever required
by the context of this Agreement and the exhibits attached hereto, the singular shall include the
plural and the masculine shall include the feminine and vice versa. This Agreement and the
exhibits attached hereto shall not be construed as if they had been prepared by one of the parties,
but rather as if all parties had prepared the same. Unless otherwise indicated, all references to
paragraphs and subparagraphs are to this Agreement.

          (g) Governing Law. The parties hereto acknowledge that this Agreement has been
negotiated and entered into in the State. The parties hereto expressly agree that this Agreement
shall be governed by, interpreted under, and construed and enforced in accordance with the laws of
the State. Any dispute arising under this Agreement or the documents referred to herein will be
adjudicated exclusively in the courts of the State with venue in the County.

          (h) Non-Binding. No party shall have any legal rights or obligations with respect to
any other party, and no party should or may take any action or fail to take any action in
detrimental reliance, unless and until this Agreement is executed by all of the parties hereto.

          (i) Exhibits. All exhibits referred to in this Agreement are attached hereto and are
fully incorporated herein by this reference as though set forth at length herein.

          (j) Assignment. Buyer shall not assign its rights under this Agreement.
Notwithstanding the foregoing sentence, prior to Closing Purchaser may assign its rights under this
Agreement to a Permitted Assign; provided, however, that such assignee shall assume
all of Purchaser’s obligations under this Agreement; provided, further, that
Purchaser shall remain jointly and severally liable with its Permitted Assign for all obligations
of Buyer under this Agreement and under the documents to be executed and delivered in connection
herewith. This Agreement and the documents to be executed and delivered hereunder may be assigned
by Seller to any affiliate of any partner of Seller. Notwithstanding any assignment or any other
provision of this Agreement to the contrary, in no event shall Buyer be released from any of its
obligations under this Agreement and/or the exhibits attached hereto, including, without
limitation, the indemnification obligations under Paragraph 23(c) of this Agreement.

          (k) Counterparts. This Agreement may be executed in counterparts, each of which shall
constitute a separate document but all of which together shall constitute one and the same
agreement. Signature pages may be detached and reattached to physically form one document. This
Agreement may be executed by facsimile or electronic (scanned) signature.

          (l) Further Assurances. To the extent consistent with the terms of this Agreement and
customarily executed and/or delivered in similar transactions, Buyer and Seller will make, execute,
and deliver such documents and undertake such other and further acts as may be reasonably necessary
to complete the transaction contemplated herein.

32

 

          (m) Third Party Beneficiary. Except for SHF, which is expressly made a third party
beneficiary of this Agreement, no term or provision of this Agreement or the documents to be
executed and delivered hereunder is intended to be, nor will any such term or provision be
construed to be, for the benefit of any person, firm, corporation or other entity not a party
hereto (including, without limitation, any broker), and no other person, firm, corporation or
entity will have any right or cause of action hereunder.

          (n) No Recording. The provisions of this Agreement will not constitute a lien on the
Property and neither this Agreement nor any notice or memorandum of this Agreement will be recorded
by Buyer.

          (o) Business Days. If, under the terms of this Agreement, the time for the
performance of any act, giving of notice, or making any payment falls on a Saturday, Sunday, or
legal holiday, such time for performance shall be extended to the next succeeding business day.

          (p) Limited Partner of Seller. Buyer acknowledges that each limited partner (“Limited
Partner”) of Seller, including, without limitation, SHF, is a limited partner of Seller and,
therefore, does not have any personal liability for Seller’s obligations. Even though any such
Limited Partner may have been involved in the preparation, negotiation and consummation of this
Agreement and the exhibits attached hereto, such involvement does not, in any manner whatsoever,
modify or change any such Limited Partner’s status as a limited partner of Seller. Buyer has no
claim against any Limited Partner (or any of its direct or indirect partners, principals, asset
managers, contractors, agents, affiliates, successors or assigns) for the obligations of Seller
hereunder.

          (q) 1031 Exchange. Any party may consummate the purchase or sale (as applicable) of
the Real Property to be conveyed hereunder as part of a so-called like-kind exchange (an
“Exchange”) pursuant to Section 1031 of the Code, as amended; provided, however,
that: (i) the Closing shall not be delayed or affected by reason of the Exchange nor shall the
consummation or accomplishment of an Exchange be a condition precedent or condition subsequent to
the exchanging party’s obligations under this Agreement; (ii) any assignment of this Agreement
necessary to effect its Exchange shall comply with all of the terms of this Agreement; (iii) no
party shall be required to take an assignment of any agreement for the relinquished or replacement
property or be required to acquire or hold title to any real property for purposes of consummating
an Exchange desired by the other party; (iv) the exchanging party shall pay any additional costs
that would not otherwise have been incurred by the non-exchanging party had the exchanging party
not consummated the transaction through an Exchange; and (v) the non-exchanging party shall not
incur any liabilities. No party shall by this Agreement or acquiescence to an Exchange desired by
the other party have its rights under this Agreement affected or diminished in any manner or be
responsible for compliance with or be deemed to have warranted to the exchanging party that its
Exchange in fact complies with Section 1031 of the Code. Subject to the provisions of this
Paragraph 24(q), each party shall cooperate with the other party in effecting an Exchange.

33

 

     (r) Confidentiality. Buyer shall treat this Agreement and the Property Files as
confidential in all respects and shall not disclose the existence of this Agreement, the terms of
this Agreement, the Property Files or the results of its due diligence under this Agreement without
the advance written consent of Seller, except for (i) disclosure only to the extent reasonably
necessary to Buyer’s Representatives in connection with the transactions contemplated hereby or,
after the Closing Date, for the operation of the Property; (ii) disclosure required by law or by
regulators, including in response to a subpoena or similar process or as part of a filing required
to be made under securities laws; (iii) disclosure in connection with litigation to enforce the
terms of this Agreement; (iv) disclosure by a party required to satisfy a condition precedent to
Closing; and (v) after the Closing Date, the fact of the purchase of the Property, the Purchase
Price, the identity of the Seller (but not the members thereof) and other publicly available
information.

     (s) SHF Consent. Notwithstanding anything contained herein to the contrary, Seller
cannot, without first obtaining Limited Partner Consent: (a) amend this Agreement; (b) waive any
rights Seller may have under this Agreement; (c) incur any non-customary charges or expenses in
connection with the transactions contemplated by this Agreement and/or (d) incur any additional
liabilities (except as expressly contemplated hereunder) in connection with the transactions
contemplated by this Agreement. In addition, if the consent of Seller is required under this
Agreement and/or requested of Seller, Seller shall not grant such consent without first obtaining
Limited Partner Consent.

      (t) Survival. The provisions of this Paragraph 24 shall survive any
termination of this Agreement and shall survive Closing and the delivery of the Special Warranty
Deed at Closing.

      (u) Merger. All provisions of this Agreement (except for the terms of this
Agreement which expressly survive Closing and the delivery of the Special Warranty Deed at Closing)
shall merge into the Special Warranty Deed with the delivery of the Special Warranty Deed, and the
delivery of the Special Warranty Deed to Buyer shall constitute the full performance of Seller
under this Agreement.

     (v) Record Access and Retention. To the extent Seller possesses or controls the same,
prior to Closing, Seller shall use commercially reasonable efforts to provide Buyer with copies of,
or reasonable access to, such factual information as may be reasonably requested by Buyer in
connection with an audit, in accordance with Rule 3-14 of Securities and Exchange Commission
Regulation S-X, of the income statements of the Property for the year to date of the year in which
Closing occurs plus one (1) prior calendar year (provided, however, such audit shall not include an
audit of management fees or interest expenses attributable to the Seller). Buyer shall be
responsible to engage the auditor and to pay all costs associated with such audit. Notwithstanding
anything in this Paragraph 24(v) to the contrary, Seller shall not have or be required to incur any
cost, expense or liability in connection with such audit.

<Parties’ Signatures On Next Page>

34

 

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set
forth above.

SELLER:

Arbor Pointe, L.P., an Ohio limited partnership

	 	 	 	 	 
	 	By:  	MBS GP 76, L.L.C., a Delaware limited liability company, its general partner
 	 

	 	 	 	 	 
	 	By:  	         MUDCO 4, INC., a Missouri corporation, its Sole Member
 	 

	 	 	 	 	 
	 	By:  	                                         /s/ Hillary B. Zimmerman
 	 
	 	 	Hillary, B. Zimmerman, Vice President 	 
	 

	 	 	 	 	 
	 	PURCHASER:

Steadfast Asset Holdings, Inc., a California corporation

 	 
	 	By:  	/s/ Dinesh Davar
 	 
	 	 	Name:  	Dinesh Davar 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Signature page for REAL ESTATE PURCHASE AND SALE AGREEMENT WITH ESCROW 

INSTRUCTIONS dated as of February 16, 2011 by and between Arbor Pointe, L.P., an Ohio

 limited partnership and Steadfast
Asset Holdings, Inc., a California corporation

s-1

 

ACCEPTANCE BY CHICAGO TITLE INSURANCE COMPANY

     Chicago Title Insurance Company, referred to in this Agreement as the “Escrow Agent” and
“Title Company,” hereby acknowledges receipt of the Initial Deposit in the amount of One Hundred
Thousand Dollars ($100,000.00), together with a fully executed copy of this Agreement. Chicago
Title Insurance Company certifies that it has received and understands this Agreement and hereby
accepts the obligations of the Escrow Agent and the Title Company as set forth herein, including,
without limitation, its agreement to hold the Deposit and disburse same, in strict accordance with
the terms and provisions of this Agreement.

Date: February 16, 2011

	 	 	 	 	 
	 	Chicago Title Insurance Company

 	 
	 	By:  	/s/ Shannon Bright
 	 
	 	 	Name:  	Shannon Bright 	 
	 	 	Title:  	 	 
	 

s-2

 

SCHEDULE OF EXHIBITS

	 	 	 

	EXHIBIT A

	 	Legal Description
	EXHIBIT B

	 	Form of Special Warranty Deed
	EXHIBIT C

	 	Form of FIRPTA Certificate
	EXHIBIT D

	 	Form of Assignment and Assumption of Leases
	EXHIBIT E

	 	Form of General Assignment and Bill of Sale
	EXHIBIT F

	 	Form of Tenant Notice Letter
	EXHIBIT G

	 	[reserved]
	EXHIBIT H

	 	Rent Roll
	EXHIBIT I

	 	List of Property Files
	EXHIBIT J

	 	[reserved]

s-3

 

EXHIBIT “A”

LEGAL DESCRIPTION OF PROPERTY

Located in Jefferson County, Kentucky:

Being all of Residual Tract “13R” as shown on approved Minor Subdivision Plat bearing Docket
#126-93 attached to and made a part of instrument recorded in Deed Book 6330, page 761, in the
Office of the Clerk of Jefferson County, Kentucky.

Being the same property conveyed to Arbor Pointe Limited Partnership, an Ohio limited partnership,
by Deed dated December 7, 1993, recorded in Deed Book 6391, Page 693, in the Office of the Clerk of
Jefferson County, Kentucky.

a-1

 

EXHIBIT “B”

[FORM OF]

Special Warranty Deed

     THIS DEED is made and entered into as of                     , 2011, between

Arbor Pointe, L.P., an Ohio limited partnership

c/o McCormack Baron Salazar, Inc.

720 Olive Street, Suite 2500

St. Louis, Missouri 63101

Attn: Hillary Zimmerman

(“Grantor”)

and

 

 

 

 

Attn:                     

(“Grantee”).

WITNESSETH

     For a total consideration of                      Dollars
($                    .00), the receipt and sufficiency
of which are acknowledged, Grantor grants and conveys to Grantee in fee simple with covenant of
Special Warranty the real property located in Jefferson County, Kentucky, and more particularly
described on EXHIBIT A attached hereto and made a part hereof (the “Property”).

     Grantor covenants and warrants specially the Property and will forever warrant and defend the
Property against the claims and demands of Grantor and all persons claiming by, through or under
Grantor, but not otherwise. This conveyance is made subject to all (i) easements, restrictions and
stipulations of record, (ii) governmental laws, ordinances and regulations affecting the Property
and (iii) liens for real property taxes and assessments due and payable in 2011 and thereafter,
which Grantee assumes and agrees to pay.

     For purposes of KRS 382.135, Grantor and Grantee, by execution of this Deed, certify that the
consideration reflected in this Deed is the full consideration paid for the Property.

     For purposes of KRS 382.135, the in-care-of address to which the property tax bill for 201_
may be sent to is: c/o                     , a                     ,                     ; Attn: ___________.

b-1

 

     IN WITNESS WHEREOF, Grantor and Grantee have executed this Deed as of the date first set forth
above but actually on the dates set forth below.

GRANTOR:

Arbor Pointe, L.P., an Ohio limited partnership

	 	 	 	 	 
	 	By:  	MBS GP 76, L.L.C., a Delaware limited liability company, its general partner
 	 

	 	 	 	 	 
	 	By:  	MUDCO 4, INC., a Missouri corporation, its Sole Member
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Hillary B. Zimmerman, Vice President 	 

Date:                     , 2011

GRANTEE:

                    

	 	 	 	 	 

	 	By:

	 	 	 
	 	 

	 	 	 
	 	Name:
	 	 	 
	 	 

	 	 	 
	 	Title:
	 	 	 
	 	 

	 	 	 

Date:                     , 2011

b-2

 

	 	 	 

	This Deed Prepared By:

	 	 
	Joseph S. Klein, Esq.
	 	 
	Bouza, Klein & Kaminsky
	 	 
	950 S. Flower Street, Suite 100
	 	 
	Los Angeles, California 90015
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	When Recorded Return to:
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 

b-3

 

[CONFORM FORM OF NOTARY TO LOCAL LAW]

STATE OF                     )

: ss.

COUNTY OF                     )

The foregoing instrument was acknowledged before me this ______ day of                     ,
20____ by                     . He or she is personally known to me or has produced
                     as identification and did (did not) take an oath.

                                        
                    
                    

NOTARY PUBLIC

Residing at:                    
                    
                    

My Commission Expires:

                    
                    
                    
                    

b-4

 

EXHIBIT “A” TO SPECIAL WARRANTY DEED

LEGAL DESCRIPTION OF PROPERTY

Located in Jefferson County, Kentucky:

Being all of Residual Tract “13R” as shown on approved Minor Subdivision Plat bearing Docket
#126-93 attached to and made a part of instrument recorded in Deed Book 6330, page 761, in the
Office of the Clerk of Jefferson County, Kentucky.

Being the same property conveyed to Arbor Pointe Limited Partnership, an Ohio limited partnership,
by Deed dated December 7, 1993, recorded in Deed Book 6391, Page 693, in the Office of the Clerk of
Jefferson County, Kentucky.

b-5

 

EXHIBIT “C”

[FORM OF]

TAXPAYER’S CERTIFICATION OF NON-FOREIGN STATUS

          To inform Steadfast Asset Holdings, Inc., a California corporation (“Transferee”) that
withholding of tax under Section 1445 of the Internal Revenue Code of 1986, as amended (“Code”),
will not be required upon the transfer of certain real property to the Transferee by Arbor Pointe,
L.P., an Ohio limited partnership, the undersigned (“Taxpayer”) hereby certifies the following on
behalf of the Taxpayer:

          1. That Taxpayer is a United States person and is not a foreign person, foreign corporation,
foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Code and
the Income Tax Regulations promulgated thereunder);

          2. The Taxpayer’s U.S. employer identification number is 31-1393134; and

          3. The Taxpayer’s office address is 720 Olive Street, Suite 2500, St. Louis, Missouri 63101.

          The Taxpayer understands that this Certification may be disclosed to the Internal Revenue
Service by the Transferee and that any false statement contained herein could be punished by fine,
imprisonment, or both.

          Under penalty of perjury I declare that I have examined this Certification and to the best of
my knowledge and belief it is true, correct and complete, and I further declare that I have
authority to sign this document on behalf of the Taxpayer.

Date:                     
                    
                    

Arbor Pointe, L.P., an Ohio limited partnership

	 	 	 	 
	By:  	MBS GP 76, L.L.C., a Delaware limited liability company, its general partner
 	 

	 	 	 	 	 
	 	By:  	         MUDCO 4, INC., a Missouri corporation, its Sole Member
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Hillary, B. Zimmerman, Vice President 	 

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EXHIBIT “D”

[FORM OF]

ASSIGNMENT AND ASSUMPTION OF LEASES

     THIS ASSIGNMENT AND ASSUMPTION OF LEASES (“Assignment”) is dated as of                     ,
and is entered into by and between Arbor Pointe, L.P., an Ohio limited partnership (“Assignor”) and
                     (“Assignee”), with respect to the following matters.

W I T N E S S E T H:

     Assignor and Steadfast Asset Holdings, Inc., a California corporation (“Purchaser”) entered
into that certain Real Estate Purchase And Sale Agreement With Escrow Instructions, dated as of
February __, 2011 (“Agreement”), regarding the sale of that certain real property being more fully
described on Exhibit “A” attached hereto and made a part hereof, together with all improvements and
other property comprising Property (as defined in the Agreement). Unless otherwise indicated
herein, all capitalized terms in this Assignment shall have the meaning ascribed to them in the
Agreement.

     In accordance with the terms of the Agreement, Purchaser assigned its interests to Assignee.

     Assignor, as lessor, and Tenants have entered into the Tenant Leases covering certain premises
located on the Property.

     Under the Agreement, to the extent assignable, Assignor is obligated to: (a) assign to
Assignee any and all of its right, title and interest in and to all Tenant Leases; and (b) give
Assignee a credit in an amount equal to the amount of the Tenant Deposits and prepaid rents.

     Under the Agreement, Assignee is obligated to assume all of Seller’s obligations with respect
to the Tenant Deposits and prepaid rents.

A G R E E M E N T

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows.

     Assignor hereby assigns, sells, transfers, sets over and delivers unto Assignee all of
Assignor’s estate, right, title and interest in and to the Tenant Leases, as set forth on Exhibit
“B” hereto and Assignee hereby accepts such assignment and hereby assumes all of the obligations
and agrees to pay, perform and discharge all of the terms, covenants and conditions, in each case
arising or accruing under or in connection with the Tenant Leases and Tenant Deposits from and
after the date of this Assignment.

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     Assignee hereby acknowledges receipt of funds equal to the amount of, and in payment of, all
Tenant Deposits and prepaid rents and hereby assumes all of the obligations in connection
therewith.

     In the event of the bringing of any action or suit by a party hereto against another party
thereunder by reason of any breach of any of the covenants, conditions, agreements or provisions on
the part of the other party arising out of this Assignment, then in that event the prevailing party
shall be entitled to have and recover of and from the other party all costs and expenses of the
action or suit, including actual attorneys’ fees and costs.

     The transfers and assumptions given effect by this Assignment are limited by and made
expressly subject to the terms, covenants and conditions set forth in the Agreement.

     This Assignment may be executed simultaneously in counterparts, each of which shall be deemed
an original, but all of which, together, shall constitute one and the same instrument.

     This Assignment shall be binding upon and inure to the benefit of the successors, assignees,
personal representatives, heirs and legatees of all the respective parties hereto.

     This Assignment shall be governed by, interpreted under, and construed and enforceable in
accordance with, the laws of the State.

<Parties’ Signatures On Next Page>

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     IN WITNESS WHEREOF, Assignor and Assignee have executed and delivered this Assignment as of
the day and year first above written.

ASSIGNOR:

Arbor Pointe, L.P., an Ohio limited partnership

	 	 	 	 	 
	 	By:  	MBS GP 76, L.L.C., a Delaware limited liability company, its general partner
 	 

	 	 	 	 	 
	 	By:  	         MUDCO 4, INC., a Missouri corporation, its Sole Member
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Hillary, B. Zimmerman, Vice President 	 
	 

ASSIGNEE:

                    
                    

	 	 	 	 	 

	By:

	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

Attachments:

Exhibit “A” — Legal Description

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EXHIBIT “A” TO ASSIGNMENT AND ASSUMPTION OF LEASES

LEGAL DESCRIPTION OF THE PROPERTY

Located in Jefferson County, Kentucky:

Being all of Residual Tract “13R” as shown on approved Minor Subdivision Plat bearing Docket
#126-93 attached to and made a part of instrument recorded in Deed Book 6330, page 761, in the
Office of the Clerk of Jefferson County, Kentucky.

Being the same property conveyed to Arbor Pointe Limited Partnership, an Ohio limited partnership,
by Deed dated December 7, 1993, recorded in Deed Book 6391, Page 693, in the Office of the Clerk of
Jefferson County, Kentucky.

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EXHIBIT “E”

[FORM OF]

GENERAL ASSIGNMENT AND BILL OF SALE

     THIS GENERAL ASSIGNMENT AND BILL OF SALE (“Assignment”) is dated as of                     ,
and is entered into by and between Arbor Pointe, L.P., an Ohio limited partnership (“Assignor”) and
                     (“Assignee”), with respect to the following matters.

W I T N E S S E T H:

     Assignor and Steadfast Asset Holdings, Inc., a California corporation (“Purchaser”) entered
into that certain Real Estate Purchase And Sale Agreement With Escrow Instructions, dated as of
February __, 2011 (“Agreement”), regarding the sale of that certain real property being more fully
described on Exhibit “A” attached hereto and made a part hereof, together with all improvements and
other property comprising Property (as defined in the Agreement). Unless otherwise indicated
herein, all capitalized terms in this Assignment shall have the meaning ascribed to them in the
Agreement.

     In accordance with the terms of the Agreement, Purchaser assigned its interests to
Assignee.Steadfast Asset Holdings, Inc., a California corporation (“Assignee”), with respect to the
following matters.

     Pursuant to the Agreement (except as otherwise provided for therein), Assignor is obligated to
transfer, sell, convey and assign any and all of Assignor’s right, title and interest in and to the
Personal Property, and to the extent assignable, the Intangibles and the Service Contracts
(collectively, the “Assigned Properties”) and to delegate any and all of its obligations and
responsibilities in the Assigned Properties from and after the date hereof to Assignee and Assignee
is obligated to assume such obligations and responsibilities.

     Further, pursuant to the Agreement, Assignee is obligated to assume such obligations and
responsibilities arising or accruing under the Regulatory Agreements and the Tax Credit Laws
applicable to the Property.

A G R E E M E N T

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows.

     Assignor hereby assigns, sells, transfers, sets over and delivers unto Assignee all of
Assignor’s estate, right, title and interest in and to the Assigned Properties and Assignee hereby
accepts such assignment and hereby assumes all of the obligations and agrees to pay, perform and
discharge all of the terms, covenants and conditions, in each case arising or accruing under the
Assigned Properties from and after the date of this Assignment.

     Assignor hereby assigns, sells, transfers, sets over and delivers unto Assignee all of
Assignor’s estate, right, title and interest in and to the Regulatory Agreements and Assignee

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hereby accepts such assignment and hereby assumes, confirms and agrees to undertake all of the
obligations arising or accruing under the Regulatory Agreements and the Tax Credit Laws applicable
to the Property from and after the date of this Assignment. The provisions of this Paragraph shall
survive any termination of this Assignment.

     In the event of the bringing of any action or suit by a party hereto against another party
hereunder by reason of any breach of any of the covenants, conditions, agreements or provisions on
the part of the other party arising out of this Assignment, then in that event the prevailing party
shall be entitled to have and recover of and from the other party all costs and expenses of the
action or suit, including actual attorneys’ fees and costs.

     The transfers and assumptions given effect by this Assignment are limited by and made
expressly subject to the terms, covenants and conditions set forth in the Agreement.

     This Assignment shall be binding upon and inure to the benefit of the successors, assignees,
personal representatives, heirs and legatees of all the respective parties hereto.

     This Assignment shall be governed by, interpreted under, and construed and enforceable in
accordance with, the laws of the State.

     This Assignment may be executed in counterparts, each of which shall be deemed an original,
but all of which, together, shall constitute one and the same instrument.

<Parties’ Signatures On Next Page>

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     IN WITNESS WHEREOF, Assignor and Assignee have executed and delivered this Assignment as of
the day and year first above written.

ASSIGNOR:

Arbor Pointe, L.P., an Ohio limited partnership

	 	 	 	 	 
	 	By:  	MBS GP 76, L.L.C., a Delaware limited liability company, its general partner
 	 

	 	 	 	 	 
	 	By:  	         MUDCO 4, INC., a Missouri corporation, its Sole Member
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Hillary, B. Zimmerman, Vice President 	 

ASSIGNEE:

                    
                    
                    

	 	 	 	 	 

	By:

	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

Attachments:

Exhibit “A” — Legal Description

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EXHIBIT “A” TO GENERAL ASSIGNMENT AND BILL OF SALE

LEGAL DESCRIPTION OF THE PROPERTY

Located in Jefferson County, Kentucky:

Being all of Residual Tract “13R” as shown on approved Minor Subdivision Plat bearing Docket
#126-93 attached to and made a part of instrument recorded in Deed Book 6330, page 761, in the
Office of the Clerk of Jefferson County, Kentucky.

Being the same property conveyed to Arbor Pointe Limited Partnership, an Ohio limited partnership,
by Deed dated December 7, 1993, recorded in Deed Book 6391, Page 693, in the Office of the Clerk of
Jefferson County, Kentucky.

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EXHIBIT “F”

FORM OF TENANT NOTICE LETTER

ARBOR POINTE APARTMENTS

[CLOSING DATE]

	 	 	 	 	 

	Tenant Name: 

	 	 	 	 
	 

	 	 	 	 
	Unit #:
	 	 	 	 
	 

	 	 	 	 

			
	Re:	 	Notice of Sale regarding Arbor Pointe Apartments, located at 2051 Stoney Brook Drive,
Louisville, Kentucky 40299 (the “Property”)

Dear Resident:

You are hereby notified as follows:

	1.	 	As of the date hereof, the Property has been sold to a new owner.
	 
	2.	 	The new owner has received and is now responsible for your tenant security, pet and other
deposits and credits with respect to your lease at the Property. Any inquiries regarding your
deposit should be directed to the on-site manager of the Property.
	 
	3.	 	Future rental payments with respect to your lease at the Property should be made to the new
owner by delivering a check or money order payable to the order of [                    ] to
the on-site manager of the Property.

	 	 	 	 	 
	 	Very truly yours,

[BUYER OR BUYER’S MANAGEMENT COMPANY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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EXHIBIT “G”

[reserved]

g-1

 

EXHIBIT “H”

RENT ROLL

<Attached>

h-1

 

EXHIBIT “I”

LIST OF PROPERTY FILES

	1.	 	Current rent roll
	 
	2.	 	Current standard tenant lease form (with all addendums, riders and exhibits)
	 
	3.	 	Copies of current tenant leases (including amendments) and copies of tenant files
(available on-site)
	 
	4.	 	Unaudited monthly income statements for the Property, year-to-date and for the
previous three (3) years
	 
	5.	 	Current year budget for the Property
	 
	6.	 	Occupancy report (by month) for the past three (3) years
	 
	7.	 	Copy of the property management agreement
	 
	8.	 	Listing of current on-site employees, their titles and duties / job description /
compensation structure
	 
	9.	 	Service Contracts
	 
	10.	 	Three (3) year loss run, and copies of insurance certificates
	 
	11.	 	The utility bills for the Property for the past twelve (12) calendar months
	 
	12.	 	List of capital expenses for the previous two (2) years for the Property
	 
	13.	 	Regulatory Agreements
	 
	14.	 	Licenses, permits, and certificates of occupancy
	 
	15.	 	As-built (ALTA or other) surveys for the Property
	 
	16.	 	Phase I Environmental Site Assessments
	 
	17.	 	Third party engineering reports
	 
	18.	 	Most recent compliance audit from the Housing Authority
	 
	19.	 	Outstanding, unresolved IRS Form 8823s
	 
	20.	 	Schedule of Personal Property
	 
	21.	 	List of capital expenses for the previous three (3) years for the Property
	 
	22.	 	8609’s
	 
	23.	 	Aged delinquency report
	 
	24.	 	2009 audited financial statement
	 
	25.	 	2010 trial balance
	 
	26.	 	2010 general ledger
	 
	27.	 	2010 monthly rent rolls
	 
	28.	 	2010 monthly bank statements and reconciliations
	 
	29.	 	2010 real property tax invoices with check copies
	 
	30.	 	2010 insurance invoices with check copies     
	 
	31.	 	Access to reasonable number of 2010 invoices to be selected by Auditors for     
review
	 
	32.	 	Year to date general ledger
	 
	33.	 	Year to date monthly rent rolls
	 
	34.	 	Year to date monthly bank statements and reconciliations
	 
	35.	 	Current year real property tax invoices with check copies (if paid)
	 
	36.	 	Current year to date insurance invoices with check copies (if paid)
	 
	37.	 	Access to reasonable number of current year to date invoices to be selected by
Auditors for review
	 
	38.	 	2010 cash disbursement journal

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	39.	 	Year to date trial balance
	 
	40.	 	Year to date cash disbursement journal

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EXHIBIT “J”

[reserved]

j-1

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