Document:

Exhibit
10.47

 

CONTRACT FOR PURCHASE AND
SALE

 

Tupelo
Alley

Portland,
Oregon

 

This CONTRACT FOR PURCHASE AND
SALE (this “Contract”) is made and entered as of May 19,
2010 (the “Effective Date”) by and between MISSISSIPPI
AVE APARTMENTS LLC, a Delaware limited liability company (“Seller”),
and BEHRINGER HARVARD MULTIFAMILY OP I LP,
a Delaware limited partnership (“Buyer”).

 

For and in consideration of the mutual covenants and
agreements contained in this Contract, Buyer and Seller agree as follows.

 

1.                                       PURCHASE AND
SALE. Seller agrees to sell and convey to Buyer, and Buyer agrees to buy from
Seller, the Property (defined below) for the consideration and upon and subject
to the terms and conditions hereinafter set forth. The “Property” means:

 

(a)                                  The land situated
in Portland, Multnomah County, Oregon, more particularly described in Exhibit A
to this Contract (the “Land”), together with (i) the improvements
situated on the Land commonly known as Tupelo Alley, and all other structures,
fixtures, buildings and improvements situated on the Land (such buildings,
structures, fixtures and improvements being herein called the “Improvements”),
(ii) any and all rights, titles, powers, privileges, easements, licenses,
rights-of-way and interests appurtenant to the Land and the Improvements, and
(iii) all rights, titles, powers, privileges, licenses, easements,
rights-of-way and interests, if any, of Seller, either at law or in equity, in
possession or in expectancy, in and to any real estate lying in the streets, highways,
roads, alleys, rights-of-way or sidewalks, open or proposed, in front of,
above, over, under, through or adjoining the Land and in and to any strips or
gores of real estate adjoining the Land;

 

(b)                                 All equipment,
fixtures, appliances, inventory, computers, computer hardware, computer
software, and other tangible personal property of whatever kind or character
owned by Seller and attached to or installed or located on or in the Land or
the Improvements, including furniture, furnishings, drapes and floor coverings,
office equipment and supplies, heating, lighting, refrigeration, plumbing,
ventilating, incinerating, cooking, laundry, communication, electrical,
dishwashing, and air conditioning equipment, disposals, window screens, storm
windows, recreational equipment, pool equipment, patio furniture, sprinklers,
hoses, tools and lawn equipment (collectively, the “Personal Property”);

 

(c)                                  All of Seller’s
right, title and interest in and to: (i) all leases and other agreements
that permit occupancy or use of any apartment unit or other space in the
Improvements (collectively, “Tenant Leases”); (ii) all refundable
deposits (security, pet or otherwise) actually paid to or received by Seller
pursuant to Tenant Leases (and not as of the Closing Date returned to or forfeited
by tenants under Tenant Leases); and (iii) all service and maintenance
contracts which relate to the operation, maintenance or management of the Land,
the Improvements or the Personal Property (collectively, the “Service
Contracts”); and

 

(d)                                 To the extent
assignable, all of Seller’s right, title, and interest in and to all of the
following (collectively, the “Intangibles”): (i) all bonds,
permits, licenses (including 

 

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software licenses), approvals, utility rights,
development rights and similar rights related to the Property, or any portion
thereof, whether granted by governmental authorities or private persons,
(ii) all trademarks, trade names, or symbols under which the Property, or
any portion thereof, is operated including the name of “Tupelo Alley”, but
excluding the names “Crow,” “Trammell Crow,” “Trammell Crow Residential,” “TCR”
and “Alexan” and derivatives of any such names and the “TCR” logo as well as
trademarks, trade names, and service marks containing any of such names or such
logo (collectively, the “Excluded IP”), (iii) all telephone numbers
and exchanges serving the Property, or any portion thereof, (iv) all
business and goodwill of Seller related to the Property, or any portion thereof,
(v) all site plans, surveys, soil and substrata studies, architectural
drawings, “as built” plans and specifications, engineering plans, floor plans,
and landscape plans that relate exclusively to the Property, or any portion
thereof, (vi) all leasing materials and brochures, ledger cards, leasing
records, leasing applications, tenant credit reports and maintenance and
operating records related exclusively to the operation of Property, or any
portion thereof, (vii) all warranties and guaranties (express or implied)
issued in connection with, or arising out of (A) the purchase and repair
of all Personal Property or (B) the construction of any of the
improvements located on the Property, or any portion thereof, but excluding any
warranty or guaranty from the general contractor for the Property or any other
affiliate of Seller, and (viii) the website that at the time of Closing
has the Internet domain name www.tupeloalley.com (the “Website”);
provided, that (x) Buyer may, at Closing, choose to exclude the Website
from the Property, or (y) if Buyer does not choose to exclude the Website
from the Property at Closing, then no more than 30 days after Closing, Buyer
shall, at Buyer’s expense, change the Internet domain name of the website to
another name that does not include the Excluded IP and remove all Excluded IP,
all links to web sites containing Excluded IP (e.g. www.tcresidential.com;
www.alexanapts.com, etc.), all references to Seller and Seller’s property
manager and all addresses, phone numbers, e-mail addresses and other
identifying information relating to Seller or Seller’s property manager from
the Website. The obligations in the foregoing clause (viii) shall survive
Closing.

 

2.                                       PURCHASE PRICE. The total
purchase price for the Property (the “Purchase Price”) shall be
$38,750,000 payable in cash at Closing (defined below). Payment in cash shall
mean by cashier’s check or certified check drawn on a national banking
association acceptable to Seller or by wire transfer of immediately available
federal funds (the foregoing types of funds are hereinafter referred to as “Immediately
Available Funds”).

 

3.                                       EARNEST MONEY.

 

(a)                                  Deposits. Not later
than two business days after the Effective Date, Buyer shall deliver to Chicago
Title Insurance Company, 2001 Bryan Street, 17th Floor, Dallas, Texas 75201
(Attention: Konrad Kaltenbach) (the “Title Company”), as escrow agent,
$1,000,000 (by Immediately Available Funds) as earnest money (the “Initial
Earnest Money”), which funds shall be deposited and held by the Title
Company in an interest bearing account. Unless Buyer has elected to terminate
this Contract prior to the end of the Feasibility Period (defined below), then
not later than the expiration of the Feasibility Period, Buyer shall deliver to
the Title Company an additional amount equal to $850,000 (by Immediately
Available Funds) as additional earnest money (“Additional Earnest Money”).
The Initial Earnest Money and the Additional Earnest Money, to the extent
delivered by Buyer, are collectively referred to as the “Earnest Money.”
If Buyer does not timely deliver the Initial Earnest Money as provided in this Section 3,
then this Contract shall be null and void, and neither party shall have any
right or obligation 

 

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hereunder. If Buyer fails to timely deliver the
Additional Earnest Money as provided in this Section 3, and such
failure continues for two business days after notice from Seller to Buyer, then
the Initial Earnest Money (other than the Option Money (defined below)) shall
be returned to Buyer, whereupon this Contract shall terminate, and neither
party shall have any right or obligation hereunder other than those rights and
obligations that expressly survive termination of this Contract. The Earnest
Money shall be invested in an interest-bearing account at one or more
federally-insured national banking institutions approved by Buyer, provided
Buyer satisfies the Title Company’s requirements with respect thereto. The term
“Earnest Money” as used herein shall include all amounts required to be
deposited with the Title Company and any interest earned thereon. If the
transaction contemplated by this Contract is closed, the Earnest Money will be
applied in payment of the Purchase Price to be paid at Closing. If the
transaction contemplated by this Contract is not closed, the Earnest Money
shall be disbursed in accordance with the provisions of this Contract. The
provisions of this Contract regarding disposition of the Earnest Money
following a termination of this Contract shall survive termination of this
Contract.

 

(b)                                 Option Money. $150,000 of
the Initial Earnest Money (the “Option Money”) shall be considered to be
nonrefundable and will not be returned to Buyer for any reason except for a
termination of this Contract under Section 10(b) or under Section 12(a)(i) or
(ii).

 

4.                                       CLOSING.

 

(a)                                  Closing Date. The closing
of the sale of the Property to Buyer (the “Closing”) shall take place at
the Title Company on June  10, 2010 (the “Closing Date”);
provided, however, Buyer may elect to proceed with the Closing on an earlier
Closing Date by delivering notice thereof to Seller not less than five days
before such earlier Closing Date. The parties may attend the Closing by making
their Closing deliveries into escrow with Title Company pursuant to escrow
instructions that do not conflict with the terms of this Contract.

 

(b)                                 Seller’s
Closing Deliveries. At the Closing, Seller shall deliver to Buyer the
following:

 

(i)                                     a Special
Warranty Deed duly executed and acknowledged by Seller, in the form attached as
Exhibit B, subject only to the Permitted Exceptions (defined below)
and any others approved by Buyer in writing;

 

(ii)                                  a Bill of Sale
duly executed by Seller, in the form attached as Exhibit C;

 

(iii)                               an Assignment
and Assumption Agreement (the “Assignment and Assumption Agreement”) duly
executed by Seller, in the form attached as Exhibit D;

 

(iv)                              an Assignment
of Tenant Leases and Assumption (the “Assignment of Leases”) duly
executed by Seller, in the form attached as Exhibit E;

 

(v)                                 a form of
notice to all tenants of the Property (“Tenant Notice Letter”) duly
executed by Seller, in the form attached as Exhibit F;

 

(vi)                              exclusive
possession of the Property, subject only to the rights of parties claiming
under the Tenant Leases, the Service Contracts and the Permitted Exceptions;

 

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(vii)                           a non-foreign
affidavit as permitted by Section 1445 of the Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder;

 

(viii)                     evidence of its
capacity and authority for the closing of this transaction;

 

(ix)                             a current
update of the Initial Lease Schedule (“Closing Lease Schedule”), certified
by Seller using the same certification as that made with respect to the Initial
Lease Schedule;

 

(x)                                a current
update of the Rent Roll (defined below) dated not earlier than five days before
the Closing Date, certified by Seller as being that upon which Seller
customarily relies in the ordinary course of its business;

 

(xi)                             tenant estoppel
certificates executed by each tenant leasing a portion of the Property for
retail uses in the form attached hereto as Exhibit J (provided that
if, after using commercially reasonable diligence, Seller is not able to
provide an estoppel certificate for every retail tenant, then Seller’s failure
to deliver any such estoppel certificate will not be a default under this
Contract nor will such failure be considered to be a failure of any closing
condition under this Contract;

 

(xii)                          a customary
owner’s affidavit certifying to the Title Company that there are no unpaid
bills or claims relating to the Property as of the date of Closing except as
specified, duly executed by Seller in the form attached as Exhibit G;

 

(xiii)                       a settlement
statement reflecting the prorations and adjustments required under Section 4(f);
and

 

(xiv)                      any necessary
state, county or local governmental transfer tax forms or returns.

 

(c)                                  Buyer’s Closing
Deliveries. At the Closing, Buyer shall perform and deliver
the following:

 

(i)                                  the Purchase
Price in Immediately Available Funds (reduced by the amount, if any, of the
Earnest Money applied for that purpose and by any other amounts to be credited
to Buyer at the Closing pursuant to the provisions of this Contract);

 

(ii)                               the Assignment
and Assumption Agreement duly executed by Buyer;

 

(iii)                            the Assignment
of Leases duly executed by Buyer;

 

(iv)                           the Tenant
Notice Letter duly executed by Buyer;

 

(v)                              evidence of its
capacity and authority for the closing of this transaction; and

 

(vi)                           a settlement
statement reflecting the prorations and adjustments required under Section 4(f);
and

 

(vii)                        any necessary
state, county or local governmental transfer tax forms or returns.

 

(d)                                 Closing Costs. Seller shall
pay: (i) the premium for the Owner’s Title Policy (excluding any amounts
relating to endorsements to the Owner’s Title Policy); (ii) costs and

 

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expenses for the UCC searches; (ii) costs and
expenses for the Survey; (iii) any transfer, excise, document stamps,
sales and similar taxes applicable to the transactions contemplated hereby;
(iv) one-half (1/2) of any escrow fee; (v) costs of tax certificates;
(vi) Seller’s attorneys’ fees; and (vii) other expenses stipulated to
be paid by Seller under other provisions of this Contract. Buyer shall pay:
(A) the premium for any endorsements to the Owner’s Title Policy;
(B) one-half (1/2) of any escrow fee; (C) Buyer’s attorneys’ fees;
(D) recording fees; and (E) other expenses stipulated to be paid by
Buyer under other provisions of this Contract.

 

(e)                                  Additional
Seller Deliveries. Upon completion of the Closing, Seller shall
deliver to Buyer all keys to the Improvements in Seller’s possession and an
inventory of keys issued by Seller to others. Seller shall also deliver the
originals (or copies if Seller does not have originals) of all Tenant Leases
and other tenant records such as applications, credit reports and
correspondence. Seller shall also deliver any plans and specifications, surveys
and other plans assigned to Buyer as part of the Property. Delivery of the
materials in this Section 4(e) may be accomplished by leaving
such items in the business office at the Property.

 

(f)                                    Proration of
Rents, Deposits, Assessments, and Taxes. Rents and all
expenses of operation of the Property (including utilities, assessments,
property taxes and other amounts due under the Service Contracts and, except as
otherwise provided in Section 13(f), leasing commissions) except
for insurance premiums and property management fees will be prorated as of the
Closing Date; provided, however, no prorations will be made for delinquent
rents existing as of the Closing. Amounts allocable to the Closing Date will be
for the account of Buyer if by 11:00 am (Central Time) on the Closing Date
Buyer has taken all action required of it for Closing and Buyer’s funds in the
amount required by this Contract are available in the closing escrow; otherwise
amounts allocable to the Closing Date (and if the day after the Closing Date is
not a business day, for all intervening days until the next business day) will
be for the account of Seller. If ad valorem taxes for the year in which the
sale is closed are not available on the Closing Date, proration of taxes will
be made on the basis of taxes assessed in the previous year, with a subsequent
cash adjustment of such proration to be made between Seller and Buyer, if
necessary, when actual tax figures are available. If any such charges,
expenses, income, or other required prorations (other than taxes and delinquent
rents) are unavailable at the precise Closing Date, then a readjustment of
these items shall be made within 30 days after the Closing. With respect to any
delinquent rentals, Buyer will make a reasonable attempt (but shall not be
obligated) to collect the same for Seller’s benefit after the Closing in the
usual course of the operation of the Property and such collection, if any, will
be remitted to Seller promptly upon receipt by Buyer. Nothing contained herein
shall operate to require Buyer to institute any lawsuit or other collection
procedure to collect such delinquent rentals. Seller agrees that it will not
initiate any suit or proceeding to collect delinquent rents from a tenant so
long as they remain a tenant of the Property. Any sums received by Buyer from
any tenants owing delinquent rentals will first be applied to the then-current
portion of such tenant’s rent, and then to costs incurred by Buyer in
collecting the delinquent rents, and then (and only then) to delinquent rentals
owed with respect to the period before Closing. Except as otherwise provided in
Section 13(f), with respect to locator fees, commissions and the
like related to any Tenant Lease that is executed prior to Closing, Sells shall
pay such amounts if the tenant takes occupancy of its unit prior to Closing and
Buyer shall pay such amounts if the tenant takes occupancy of its unit after
Closing. To the extent that any such amount is due under a Tenant Lease in
connection with the extension of such Lease, Seller shall pay

 

5

 

such amounts if the extension occurs prior to
Closing and Buyer shall pay such amounts if the extension occurs after Closing.
Buyer shall not be entitled to a credit at Closing for any portion of any bonus
or other up-front payment made under or in connection with any Service Contract
(including all laundry room, cable and telecommunications agreements, if any).
At the Closing, Seller will pay to Buyer in cash or credit to Buyer the amount
of any refundable deposits actually held by Seller under Tenant Leases.
Nonrefundable deposits, bonuses, fees and upfront payments will not be
prorated, nor will Buyer be entitled to a credit on account of such amounts.
The provisions of this Section 4(f) shall survive the Closing.

 

(g)                                 Insurance
Premiums and Management Fees: Utility Deposits. Insurance premiums and management
fees incurred by Seller will be paid for by Seller and Buyer shall not be
liable therefor. Seller will not assign to Buyer, and Buyer will not be entitled
to, any deposits held by any utility company or other company servicing the
Property; but rather such deposits will be returned to Seller and Buyer will
arrange and bear all responsibility to arrange with all utility companies to
have accounts styled in Buyer’s name beginning on the Closing Date. The
provisions of this Section 4(g) shall survive the Closing.

 

(h)                                 Pre-Closing
Operations. Seller shall instruct its property manager to
discontinue data entry operations in the on-site computer system for the
Property (including making deposits of rental income) for a period of at least
72 hours before the Closing. Seller acknowledges that such discontinuance is
intended to afford Seller and Buyer an opportunity to coordinate the transition
of the Property in anticipation of Closing and to complete work on prorations
as set forth in this Contract. Seller shall instruct its property manager to
forward to Buyer or its designee final reports to facilitate transition
planning and compilation of prorations as soon as practicable after
discontinuing such data entry (with Seller endeavoring to cause its property
manager to do the same within two hours of such discontinuance).

 

5.                                       FEASIBILITY
STUDY, INSPECTION, AND SERVICE CONTRACTS.

 

(a)                                  Feasibility
Study. Buyer is granted the right to conduct engineering and/or market and economic
feasibility studies of the Property and a physical inspection of the Property,
including studies or inspections to determine the existence of any
environmental hazards or conditions (collectively, the “Feasibility Study”)
during the period (the “Feasibility Period”) commencing on the Effective
Date and ending at 5:00 p.m., Central Time, on the June  3, 2010.
With Seller’s permission, after Seller has received advance notice sufficient
to permit it to schedule in an orderly manner Buyer’s examination of the
Property and to provide at least 24-hours’ advance written notice to any
affected tenants, Buyer or its designated agents may enter upon the Property
during normal business hours for purposes of analysis or other tests and
inspections which may be deemed necessary by Buyer for the Feasibility Study.
Buyer or its designated representative must be accompanied by a designated
representative of Seller or have received Seller’s written permission prior to
entering upon the Property in connection with Buyer’s Feasibility Study;
provided, however, Buyer may not enter into any space leased by any tenant
without being accompanied by a designated representative of Seller. Seller
agrees to make its representative reasonably available during normal business
hours. Buyer will not alter the physical condition of the Property or conduct
invasive testing without notifying Seller of its requested tests, and obtaining
the written consent of Seller to any physical alteration of the Property or
invasive testing. Buyer will utilize commercially reasonable diligence to
conduct or cause to be conducted all inspections and tests in a

 

6

 

manner and at times which will not unreasonably
interfere with any tenant’s use and occupancy of the Property. If Buyer
determines, in its sole judgment, that the Property is not suitable for any
reason for Buyer’s intended use or purpose, or is not in satisfactory
condition, then Buyer may terminate this Contract by written notice to Seller
prior to expiration of the Feasibility Period, in which case the Earnest Money
(other than the Option Money) will be returned to Buyer, and neither party
shall have any further right or obligation hereunder other than as set forth
herein with respect to rights or obligations which survive termination. If this
Contract is not terminated pursuant to this Section 5(a), then
after expiration of the Feasibility Period, after Seller has received advance
notice sufficient to permit it to schedule in an orderly manner Buyer’s
examination of the Property and to provide at least 24-hours’ advance written
notice to any affected tenants, Buyer or its designated agents may enter upon
the Property during normal business hours. Buyer or its designated
representative must be accompanied by a designated representative of Seller or
have received Seller’s written permission prior to entering upon the Property;
provided, however, Buyer may not enter into any space leased by any tenant
without being accompanied by a designated representative of Seller. If this
Contract is not timely terminated pursuant to this Section 5(a),
Buyer’s right to terminate this Contract pursuant to this Section 5(a) and
any and all objections with respect to the Feasibility Study will be deemed to
have been waived by Buyer for all purposes.

 

(b)                                 Restoration of
Property. Buyer will promptly restore the Property to its
original condition if damaged or changed due to the tests and inspections
performed by Buyer. Buyer will leave the Property free of any mechanic’s or
materialman’s liens or other encumbrances arising out of any of the inspections
or tests. The provisions of this Section 5(b) will survive Closing
or any termination of this Contract.

 

(c)                                  Indemnity and
Insurance. Buyer shall indemnify and hold Seller and its
partners, affiliates, officers, directors, employees and agents (collectively
with Seller, the “Seller Parties”) harmless from all claims,
liabilities, damages, losses, costs, and expenses (including reasonable
attorneys’ fees) caused by Buyer or Buyer’s Feasibility Representatives
(defined below); provided, however, neither Buyer nor Buyer’s Feasibility
Representatives shall be liable for, and Buyer shall not indemnify the Seller
Parties with respect to, any pre-existing condition, fact, matter, item, or
substance discovered, uncovered, located, identified, or disturbed as a result
of Buyer’s or Buyer’s Feasibility Representatives’ entry or activities, except
to the extent that such condition, fact, matter, item, or substance is
exacerbated by Buyer, Buyer’s employees or Buyer’s Feasibility Representatives.
Buyer shall procure and continue in force from and after the date Buyer and
Buyer’s Feasibility Representatives first enter the Property, and continuing
throughout the term of this Contract, liability insurance of not less than
$5,000,000 (which amount may be met in combination with an umbrella/excess
liability policy) covering the activities of Buyer and Buyer’s Feasibility
Representatives. Buyer shall cause its independent contractors, agents,
consultants and other representatives conducting the Feasibility Study
(collectively, “Buyer’s Feasibility Representatives”) to procure and
maintain during the term of this Contract liability insurance of not less than
$1,000,000 and shall use its commercially reasonable efforts to cause Buyer’s
Feasibility Representatives to indemnify and hold Buyer harmless from claims,
liabilities, damages, losses, costs, and expenses (including reasonable attorneys’
fees) for and from which Buyer is obligated to indemnify and hold the Seller
Parties harmless in this Section 5(c).  Buyer shall (and
shall use commercially reasonable efforts to cause Buyer’s Feasibility
Representatives to) name Seller and Seller’s property manager as additional
insureds

 

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under all such policies. If (i) Buyer is
obligated to indemnify and hold any Seller Party harmless in this Section 5(c)
and (ii) such Seller Party actually receives indemnity payments from
Buyer’s Feasibility Representatives, then Buyer shall not be obligated to
indemnify and hold such Seller Party harmless in this Section 5(c) to
the extent of such payments actually received by such Seller Party. The
provisions of this Section 5 (c) will survive Closing or any
termination of this Contract.

 

(d)                                 Confidential
Information. Buyer shall treat as confidential all information
and materials furnished or made available by Seller to Buyer in accordance with
this Contract or obtained by Buyer in the course of its investigation and
Feasibility Study (collectively, “Confidential Information”). Buyer will
not divulge and will use its commercially reasonable efforts to prevent Buyer’s
Representatives (defined below) from divulging the Confidential Information
except as reasonably necessary to third parties engaged by Buyer for the
limited purpose of analyzing and investigating the Confidential Information for
the purpose of consummating the transaction, including Buyer’s agents, attorneys,
representatives, consultants, prospective lenders, current and prospective
investors and their advisors, current and prospective financial partners, and
engineers in this transaction (collectively “Buyer’s Representatives”),
so long as Buyer informs the person to whom the disclosure is made of the
confidential nature of the Confidential Information and Buyer’s obligations
with respect thereto under this Contract and directs the person to whom the
disclosure is made to treat the Confidential Information confidentially and not
to disclose the Confidential Information to any person other than as authorized
by this Section 5(d). If Buyer purchases the Property, then Buyer
and Buyer’s Representatives may disclose such Confidential Information after
the Closing. Notwithstanding anything to the contrary in this Section 5(d) or
in any other agreement to which a party hereto is bound, the Confidential
Information shall exclude, and Buyer and Buyer’s Representatives may disclose,
any information or documentation that (i) is readily ascertainable by the
general public, (ii) was known to Buyer on a non-confidential basis prior
to the execution of this Contract, (iii) is deemed advisable by Buyer to
disclose to its officers, directors, members, managers, employees, agents,
consultants, members of professional firms serving it or potential lenders,
investors, consultants and brokers and others who need to know such information
or review such documentation for the purpose of assisting Buyer in connection
with the transaction contemplated by this Contract so long as Buyer informs the
person to whom the disclosure is made of the confidential nature of the
Confidential Information and Buyer’s obligations with respect thereto under
this Contract and directs the person to whom the disclosure is made to treat
the Confidential Information confidentially and not to disclose the
Confidential Information to any person other than as authorized by this Section 5(d),
(iv) is required by a subpoena, civil investigative demand or similar
process, but only if Buyer promptly upon receipt of the subpoena, demand or
process notifies Seller and cooperates in any efforts by Seller to obtain a
protective order or other assurance that confidential treatment will be
accorded the Confidential Information to be disclosed under the subpoena,
demand or process and Buyer uses reasonable efforts to obtain confidential
treatment for any Confidential Information so disclosed, or (v) is deemed
advisable by Buyer or its counsel to be disclosed in connection with financial
reporting, securities disclosures or other legal, tax or financial requirements
or guidelines applicable to Buyer or any affiliate thereof, including any
disclosures to the Securities and Exchange Commission. The provisions of this Section 5(d)
will survive Closing or any termination of this Contract.

 

(e)                                  Service
Contracts. During the Feasibility Period, Buyer shall have
the right to review all Service Contracts. Buyer may notify Seller prior to the
expiration of the Feasibility

 

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Period of any Service Contracts that Buyer, in its
discretion, approves. All Service Contracts (other than the Non-Terminable
Contracts) that Buyer does not so approve shall be deemed disapproved, and
Seller shall, at Seller’s expense, terminate such disapproved Service Contracts
effective not later than the Closing Date. In all events, the property
management agreement in effect with respect to the Property, along with any
Service Contract that is not delivered to Buyer, shall be deemed to be
disapproved by Buyer, and Seller shall, at Seller’s expense, terminate such
property management agreement and undelivered Service Contracts effective not
later than the Closing Date. Notwithstanding the foregoing, Buyer shall be
deemed to have approved and shall have no right to reject the Service Contracts
(“Non-Terminable Contracts”) that, by their terms, cannot be terminated
by Seller except upon the payment of a penalty, termination fee, or other
charge that is greater than two months’ payment for services under such Service
Contract or require notice of termination to be given sooner than the date on
which Buyer notifies Seller of its election to terminate.

 

6.                                       TITLE REVIEW
AND APPROVAL.

 

(a)                                  Seller shall
deliver to Buyer within five days after the Effective Date (i) a
Commitment for issuance of a Title Insurance Policy with copies of all recorded
instruments affecting the Property and recited as exceptions in such Commitment
for Title Insurance (collectively, the “Commitment”), (ii) reports
of searches made under Seller’s name in the Uniform Commercial Code records of
the county in which the Property is located, the Secretary of State of the
state in which the Property is located, and the Secretary of State of the state
in which Seller is organized (collectively, “UCC Reports”), and
(iii) a current “as built” survey (or an update of an existing “as built”
survey) (the “Survey”) of the Property made on the ground by a
registered professional land surveyor that conforms to the current requirements
of an ALTA/ACSM Land Title Surveys as adopted by the American Land Title
Association and American Congress on Surveying and Mapping. The Survey shall be
certified to Buyer using the form of certificate attached as Exhibit H.

 

(b)                                 The term “Owner’s
Title Policy” means an Owner Policy of Title Insurance on ALTA Form B-1970
or other form reasonably acceptable to Buyer if such form is not reasonably
able to be obtained from the Title Company and with such endorsements as Buyer
may request, to the extent such endorsements are available from the Title
Company and paid for by Buyer. The Owner’s Title Policy is to be issued
subsequent to Closing in accordance with a marked-up and executed version of
the Commitment (or an executed Pro Forma), in the full amount of the Purchase
Price, insuring Buyer’s fee simple title to the Land and Improvements to be
good and indefeasible subject only to Permitted Exceptions and other exceptions
approved by Buyer in writing; provided, however:

 

(1)                                the standard
exceptions shall, to the extent permitted under applicable insurance
regulations, be deleted;

 

(2)                                  the rights of
parties in possession shall be limited only to the rights of tenants as tenants
under written leases listed on the Initial Lease Schedule or under any other
lease executed in accordance with this Contract after the Effective Date; and

 

(3)                                the Owner’s
Title Policy shall not contain any Monetary Encumbrances (defined below).

 

9

 

(c)                                  If Buyer has an
objection to items disclosed in the Commitment, UCC Reports, or Survey, Buyer
will have ten days after receipt of the Commitment, UCC Reports, and Survey
(whichever is last received) (the “Title Review Period”) to give Seller
written notice of its objections. If Buyer gives timely written notice of its
objections, Seller shall have the opportunity, but not an obligation, for five
days (the “Cure Period”) following delivery of Buyer’s notice, if any,
to cure the same, but Seller shall have no obligation to expend any money, to
incur any contractual or other obligations, or to institute any litigation in
pursuing such efforts. If any objection is not satisfied within such time
period, Buyer will elect within five days of the expiration of the Cure Period,
as its sole and exclusive remedy, to either (i) terminate this Contract,
in which case the Earnest Money (other than the Option Money) will be refunded
to Buyer, and neither party shall have any further rights or obligations
pursuant to this Contract, other than as set forth herein with respect to
rights or obligations which survive termination, or (ii) waive the
unsatisfied objection (which will thereupon become a Permitted Exception). Any
exception to title not objected to by Buyer in the manner and within the time
period specified in this Section 6 will be deemed accepted by
Buyer.

 

(d)                                 The phrase “Permitted
Exceptions” shall mean (i) standard exceptions to title set forth on
the Commitment that are permitted by Section 6(b), (ii) the
rights of parties in possession under Tenant Leases, (iii) non-delinquent
real property taxes and all assessments and unpaid installments thereof which
are not delinquent, (iv) matters created by, through or under Buyer,
(v) all matters, rights and interests that would be discoverable by an
inspection or survey of the Property, and (vi) those other exceptions to
title set forth in the Commitment or Survey and which have been accepted or
deemed accepted by Buyer. Notwithstanding the foregoing, in all events and
regardless of whether Buyer objects to such exceptions, on or before the
Closing, Seller shall: (A) discharge any voluntary lien created by Seller
that is secured by any portion of the Property; (B) discharge any lien for
delinquent ad valorem taxes; (C) discharge any mortgage or deed of trust
encumbering the Property; (D) discharge or bond around any mechanics’
liens encumbering the Property to the extent such matters were created by
Seller or arise from work contracted for by Seller; and (E) discharge all
security interests reflected in the UCC Reports to the extent that such
security interests encumber the Personal Property and such matters were created
by Seller or arise from work contracted for by Seller (collectively, “Monetary
Encumbrances”).

 

(e)                                  After the
Effective Date, Seller will not intentionally or deliberately place on the
Property any lien, encumbrance or other exception other than the Permitted
Exceptions.

 

7.                                       SUBMISSION
MATTERS AND ADDITIONAL MATTERS.

 

(a)                                  Submission
Matters. Seller shall deliver to Buyer within five days after the Effective Date,
copies of the following (the “Submission Matters”):

 

(i)                                     a standard form
of Tenant Lease used with respect to the Property;

 

(ii)                                all Service
Contracts relating to the ownership and operation of the Property;

 

(iii)                             a list of the
Personal Property;

 

(iv)                              all licenses
and permits with respect to the ownership and operation of the Property,
including building permits and certificates of occupancy;

 

10

 

(v)                                 the most
current real estate and personal property tax statements with respect to the
Property;

 

(vi)                              to the extent
(and only to the extent) that such items are available and in Seller’s actual
possession or in the actual possession of Seller’s management company, all
warranties and guaranties relating to the Property, or any part thereof, or to
the Personal Property;

 

(vii)                           a schedule of
leases at the Property dated as of a date not more than 30 days prior to the
Effective Date (“Initial Lease Schedule”) prepared by the management
company managing the Property showing the following information: (a) unit
number, and (b) tenant name;

 

(viii)                      a rent roll
dated as of a date not more than 30 days prior to the Effective Date (“Rent
Roll”) prepared by the management company managing the Property showing, at
a minimum, the following information with respect to all tenants of the
Property, including retail tenants: (a) unit number, (b) tenant name,
(c) rental rate, (d) expiration date of the tenant lease, (e) amount
of deposits, and (f) move-in date;

 

(ix)                              operating
reports for the most recent 24 months prepared by the management company
managing the Property, showing all items of income and expense and all
deposits;

 

(x)                                 to the extent
(and only to the extent) that such items are available and in Seller’s actual
possession or in the actual possession of Seller’s management company, all
environmental and soils reports;

 

(xi)                              to the extent
(and only to the extent) that such items are available and in Seller’s actual
possession or in the actual possession of Seller’s management company,
non-privileged correspondence and pleadings in pending lawsuits affecting the
Property, if any;

 

(xii)                           a list of
repairs done to the Property within the last 12 months that individually have a
cost of more than $5,000;

 

(xiii)                    to the extent (and only to
the extent) that such items are available and in Seller’s actual possession or
in the actual possession of Seller’s management company, the bonds and/or
warranties of any roof, foundation, or pest control (including termite) work
performed on the Property;

 

(xiv)                       a schedule of
all insurance claims over the past three years that relate to the Property,
including crime and casualty claims;

 

(xv)                          to the extent
(and only to the extent) received by Seller or Seller’s management company, all
orders affecting the Property sent by any governmental agencies;

 

(xvi)                       a description
of all pending and threatened litigation, if any, affecting the Property;

 

11

 

(xvii)                    to the extent (and only to
the extent) received by Seller or Seller’s management company, any written
notices either (i) claiming violation of any applicable law or restrictive
covenant affecting any portion of the Land, Improvements or Personal Property,
or (ii) requiring or calling attention to the need for any work, repairs,
construction, alterations or installation in connection with the Land and
Improvements which is required in order to comply with any law or restrictive
covenant; and

 

(xviii)                 a list of all employees of
Seller, including each employee’s start date and salary.

 

(b)                                 Additional
Submission Matters. In addition, Seller will cause to be made
available to Buyer for inspection at the Property the following (the “Additional
Submission Matters”), to the extent (and only to the extent) that such
items are available and in Seller’s actual possession or in the actual
possession of Seller’s management company:

 

(i)                                   copies of
architectural drawings, “as built” plans and specifications, engineering plans
and studies, floor plans, landscape plans and other plans of any kind that
relate to the Property in the possession of or under the control of Seller;

 

(ii)                                the 12 most
recent utility bills relating to the Property;

 

(iii)                             all Tenant
Leases; and

 

(iv)                            delinquency
logs, tenant complaint logs, and repair/maintenance logs and records.

 

(c)                                  Additional
Copies of Rent Roll. Within three business days after Buyer’s request therefor,
Seller shall provide additional copies to Buyer of the Rent Roll, updated to a
date on or after the date of Buyer’s request. Seller will provide such copies
to Buyer without representation or warrant of any kind. Buyer may make no more
than three requests for updated copies of the Rent Roll under this Section 7(c).

 

8.                                     BROKER’S FEE. Buyer and
Seller represent and warrant to each other that no real estate commissions,
finders’ fees, or brokers’ fees have been or will be incurred in connection
with the sale of the Property by Seller to Buyer, other than a fee payable by
Seller to Neuburg Investment Real Estate LLC (“Neuberg”) pursuant to a
separate agreement between Seller and Neuberg. Buyer and Seller will indemnify,
defend and hold each other harmless from any claim, liability, obligation, cost
or expense (including attorneys’ fees and expenses) for fees or commissions
relating to Buyer’s purchase of the Property asserted against either party by
any broker or other person claiming by, through or under the indemnifying party
or whose claim is based on the indemnifying party’s acts. The provisions of
this Section 8 shall survive the Closing or any termination of this
Contract.

 

9.                                     AS-IS SALE. EXCEPT AS
OTHERWISE SPECIFICALLY STATED IN SECTION 11 OF THIS CONTRACT OR IN
ANY DOCUMENTS DELIVERED AT CLOSING, SELLER HEREBY SPECIFICALLY DISCLAIMS ANY
WARRANTY, GUARANTY OR REPRESENTATION, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE,
OF, AS TO, OR CONCERNING (i) THE PROPERTY OR THE NATURE, DESIGN,
CONSTRUCTION AND CONDITION OF THE PROPERTY, INCLUDING THE WATER, SOIL AND
GEOLOGY, AND THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND
USES WHICH BUYER MAY ELECT TO CONDUCT THEREON, (ii) THE EXISTENCE OF

 

12

 

ANY HAZARDOUS MATERIALS OR ENVIRONMENTAL HAZARDS OR
CONDITIONS AT THE PROPERTY (INCLUDING THE PRESENCE OF ASBESTOS), AND
(iii) COMPLIANCE WITH ANY OR ALL APPLICABLE LAWS, INCLUDING DISABILITY,
ACCESS, ZONING, SUBDIVISION AND ENVIRONMENTAL LAWS. BUYER ACKNOWLEDGES THAT IT
WILL INSPECT THE PROPERTY AND BUYER WILL RELY SOLELY ON ITS OWN INVESTIGATION
OF THE PROPERTY AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY
SELLER, EXCEPT AS SET FORTH IN SECTION 11 OF THIS CONTRACT OR IN
ANY DOCUMENTS DELIVERED AT CLOSING. THE SALE OF THE PROPERTY AS PROVIDED FOR
HEREIN IS MADE ON AN “AS  IS,” “WHERE  IS” BASIS AND “WITH
ALL  FAULTS,” AND BUYER EXPRESSLY ACKNOWLEDGES THAT, EXCEPT AS
OTHERWISE SPECIFIED IN SECTION 11 OF THIS CONTRACT OR IN ANY
DOCUMENTS DELIVERED AT CLOSING, SELLER SPECIFICALLY DISCLAIMS ANY WARRANTY OR
REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW, INCLUDING,
BUT NOT LIMITED TO, ANY WARRANTY OF CONDITION, HABITABILITY, MERCHANTABILITY,
TENANTABILITY, WORKMANLIKE CONSTRUCTION, FITNESS FOR A PARTICULAR PURPOSE OR
ACCEPTABILITY FOR THE PURPOSE INTENDED BY BUYER, IN RESPECT OF THE PROPERTY OR
ITS CONDITION OR THE CONSTRUCTION, PROSPECTS, OPERATIONS OR RESULTS OF
OPERATIONS OF THE PROPERTY. SUBJECT TO THE PROVISIONS OF THIS CONTRACT, ANY
DOCUMENTS DELIVERED AT CLOSING AND ANY WARRANTIES OR GUARANTIES ASSIGNED TO
BUYER AT CLOSING: (y) UPON CLOSE OF ESCROW, BUYER WILL ACCEPT THE PROPERTY
SUBJECT TO ADVERSE STRUCTURAL, PHYSICAL, ECONOMIC OR ENVIRONMENTAL CONDITIONS
THAT MAY THEN EXIST, WHETHER OR NOT REVEALED BY THE INSPECTIONS AND
INVESTIGATIONS CONDUCTED BY BUYER, AND (z) BUYER SPECIFICALLY WAIVES AND
RELEASES ALL RIGHTS, REMEDIES, RECOURSE OR OTHER BASIS FOR RECOVERY (INCLUDING
ANY RIGHTS, REMEDIES, RECOURSE  OR BASIS
FOR RECOVERY BASED ON NEGLIGENCE OR STRICT LIABILITY) THAT BUYER WOULD
OTHERWISE HAVE AGAINST SELLER OR ANY OF ITS AFFILIATES, ANY PERSON WHO HOLDS A
DIRECT OR INDIRECT OWNERSHIP INTEREST IN SELLER OR ANY SUCH AFFILIATE AND THE
RESPECTIVE OFFICERS, DIRECTORS, TRUSTEES, AGENTS AND EMPLOYEES OF EACH SUCH
PERSON IN RESPECT OF THE PROPERTY OR ITS CONDITION OR THE CONSTRUCTION,
PROSPECTS, OPERATIONS OR RESULTS OF OPERATIONS OF THE PROPERTY. BUYER
ACKNOWLEDGES THAT THE DISCLAIMERS AND WAIVERS IN THIS SECTION 9 ARE AN
INTEGRAL PART OF THIS CONTRACT AND SELLER WOULD NOT HAVE ENTERED INTO THIS
CONTRACT WITHOUT THEM. NOTWITHSTANDING ANYTHING IN THIS CONTRACT TO THE
CONTRARY, BUYER WILL HAVE NO RECOURSE AGAINST SELLER’S INVESTOR PARTNER FOR ANY
REASON, INCLUDING BUT NOT LIMITED TO ANY DEFAULT OF SELLER.

 

10.                                 DEFAULT.

 

(a)                                  Default by
Buyer. Unless otherwise provided for herein, if the transaction contemplated
hereby is not consummated by reason of Buyer’s breach or other failure to
timely perform all obligations and conditions to be performed by Buyer under
this Contract or under the Fitzhugh Contract (defined below), then Seller may,
as its sole and exclusive remedy (whether at law or in equity), terminate this
Contract and receive the Earnest Money as liquidated damages; Buyer and Seller
hereby agree that actual damages would be difficult or impossible to ascertain
and such amount is a reasonable estimate of the damages for such breach or
failure. Upon such payment of the Earnest Money, this Contract shall

 

13

 

terminate and neither party shall have any further
rights or obligations pursuant to this Contract, other than as set forth herein
with respect to rights or obligations which survive termination. All other
remedies with respect to the breach by Buyer of its obligation to purchase the
Property are expressly waived by Seller. Nothing in this Section 10(a)
limits Seller’s remedies for any breach by Buyer of any of its obligations
other than its obligation to purchase the Property. NOTWITHSTANDING ANYTHING TO
THE CONTRARY CONTAINED IN THIS SECTION 10(a), IF BUYER BRINGS AN
ACTION AGAINST SELLER FOR AN ALLEGED BREACH OR DEFAULT BY SELLER OF ITS
OBLIGATIONS UNDER THIS CONTRACT, RECORDS A LIS PENDENS OR OTHERWISE ENJOINS OR
RESTRICTS SELLER’S ABILITY TO SELL AND TRANSFER THE PROPERTY OR REFUSES TO
CONSENT TO OR INSTRUCT RELEASE OF THE EARNEST MONEY TO SELLER IF REQUIRED BY
ESCROW AGENT, SELLER SHALL NOT BE RESTRICTED BY THE PROVISIONS OF THIS SECTION 10(a)
FROM BRINGING AN ACTION AGAINST BUYER SEEKING EXPUNGEMENT OR RELIEF FROM ANY
IMPROPERLY FILED LIS PENDENS, INJUNCTION OR OTHER RESTRAINT AND/OR RECOVERING
FEES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES) WHICH SELLER
MAY SUFFER OR INCUR AS A RESULT OF ANY BUYER’S ACTION BUT ONLY TO THE
EXTENT THAT SELLER IS THE PREVAILING PARTY; AND THE AMOUNT OF ANY SUCH FEES,
COSTS AND EXPENSES AWARDED TO SELLER SHALL BE IN ADDITION TO THE LIQUIDATED
DAMAGES SET FORTH HEREIN. NOTHING IN THIS CONTRACT SHALL, HOWEVER, BE DEEMED TO
LIMIT BUYER’S LIABILITY TO SELLER FOR DAMAGES OR INJUNCTIVE RELIEF FOR BREACH
OF BUYER’S INDEMNITY OBLIGATIONS UNDER SECTION 5(c) ABOVE OR FOR
ATTORNEYS’ FEES AND COSTS AS PROVIDED IN SECTION 21(f) BELOW. The
term “Fitzhugh Contract” means the Contract for Purchase and Sale, dated
May 19, 2010, between Buyer and Fitzhugh Apartments Limited Partnership, a
Delaware limited partnership.

 

(b)                                 Default by
Seller. If the transaction contemplated hereby is not consummated by reason of
Seller’s breach or other failure to timely perform all obligations to be
performed by Seller under this Contract, then Buyer may, as its sole and
exclusive remedy (whether at law or in equity), either (i) terminate this
Contract and receive the Earnest Money (including the Option Money), whereupon
Seller shall reimburse Buyer for all Buyer’s reasonable third party
out-of-pocket expenses (including attorney’s fees, engineering fees,
consultant’s fees, environmental fees, and other costs incurred in connection
with the potential acquisition of the Property, the inspection and review of
the Property and the negotiation of this Contract) up to a maximum of $150,000
(provided Buyer provides reasonable evidence of such costs to Seller), and
neither party shall have any further rights or obligations pursuant to this
Contract, other than as set forth herein with respect to rights or obligations
which survive termination, or (ii) enforce specific performance of
Seller’s obligations hereunder; provided, however, if specific performance is
not an available remedy because Seller has conveyed the Land or Improvements or
any other material portion of the Property to a third party unaffiliated with
Buyer, then Buyer may bring suit, in law or in equity, for damages. If Buyer
chooses to enforce specific performance of Seller’s obligations, then Buyer
must commence action to enforce specific performance within 60 days after the
occurrence of Seller’s failure. The remedies provided in this Section 10(b)
are exclusive, and Buyer waives all other remedies (including any right to
obtain damages from Seller) for Seller’s failure in performance prior to
Closing. Nothing in this Section 10(b) limits Buyer’s remedies
for any breach by Seller of its obligations after Closing or for any breach of
representations and warranties

 

14

 

that is discovered by Buyer after Closing. In no
case shall Seller ever be liable to Buyer under any statutory, common law,
equitable or other theory of law, either prior to or following the Closing, for
any lost rents, profits, “benefit of the bargain,” business opportunities or
any form of consequential damage in connection with any claim, liability,
demand or cause of action in any way or manner relating to the Property, the
condition of the Property, this Contract, or any transaction or matter between
the parties contemplated hereunder.

 

(c)                                  Cure Period for
Other Defaults. Subject to Sections 10(a) and 10(b),
if either party is in default under this Contract, then the non-defaulting
party may not take any remedy expressly granted to it under this Contract
unless and until (i) such non-defaulting party delivers notice of the
alleged default, in reasonable detail, to the defaulting party, and
(ii) the alleged default remains uncured at 5:00 p.m., Central Time,
on the 15th business day following delivery of the default
notice. The notice and cure provisions of this Section 10(c) do
not apply to a failure by Buyer to deliver the Earnest Money, the Purchase
Price or Buyer’s closing deliveries under Section 4(c) (other
than as a result of any failure by the Title Company to timely prepare the
settlement statement required hereunder) within the times required by this
Contract.

 

11.                                 REPRESENTATIONS
AND WARRANTIES OF SELLER.

 

(a)                                  Seller hereby
represents and warrants to Buyer as of the Effective Date that the facts recited
below are true and correct. To the extent Buyer has or acquires actual
knowledge or is deemed to know prior to the expiration of the Feasibility
Period that these representations and warranties are inaccurate, untrue or
incorrect in any way, such representations and warranties shall be deemed
modified to reflect Buyer’s knowledge or deemed knowledge. The representations
and warranties contained in this Contract shall survive the Closing for a
period of nine months, but no claim shall be allowed on any such representation
or warranty unless notice of the claim and a detailed statement of the basis
for the claim is delivered by the claimant to the other party within such
nine-month period. Subject to the terms and conditions of Section 9,
nothing in this Section 11 limits the disclaimers, waivers,
releases and other provisions in Section 9, all of which will
survive Closing without limit as to time.

 

(i)                                     Seller has the
requisite corporate power and authority to sell and convey the Property as
provided in this Contract and to carry out Seller’s obligations hereunder, and
all requisite corporate action necessary to authorize Seller to enter into this
Contract and to carry out Seller’s obligations hereunder has been, or on the
Closing Date will have been, taken.

 

(ii)                                  Except as
disclosed in the Submission Matters and Additional Submission Matters, Seller
has received no written notice (except notices of conditions that have been
corrected) either (i) claiming violation of any applicable law or
restrictive covenant affecting any portion of the Land, Improvements or
Personal Property, or (ii) requiring or calling attention to the need for
any work, repairs, construction, alterations or installation in connection with
the Land and Improvements which is required in order to comply with any law or
restrictive covenant. Seller will provide to Buyer copies of any notices of
such violations it may receive following the Effective Date of this Contract.

 

15

 

(iii)                               Seller has not
received any written notices of any pending or threatened action, suit,
proceeding or claim against Seller affecting the Land, Improvements or Personal
Property or any portion thereof relating to or arising out of the ownership,
operation, use, or occupancy of the Property in any court, or by or before any
federal, state, county or municipal department, commission, board, bureau or
agency or other governmental instrumentality.

 

(iv)                              Seller has not
claimed the benefit of laws permitting a special use valuation for the purposes
of payment of ad valorem taxes on the Property.

 

(v)                                 Except as may
be disclosed in the Submission Materials, Seller has not received any written
notice of any violation of Applicable Environmental Laws at the Property. As
used in this Contract, the term “Applicable Environmental Laws” means
the following laws as amended from time to time: (A) the Resource
Conservation and Recovery Act of 1976, 42 USC §1801, et. seq.; (B) the
Comprehensive Environmental Response Compensation and Liability Act of 1980, 42
USC §9601 et. seq.; (C) any applicable regulations issued or promulgated
under or pursuant to any of the laws listed in the foregoing clauses
(A) or (B) by any department, agency or other administrative,
regulatory or judicial body; or (D) any similar laws of the State of Oregon.

 

(vi)                              All information
set forth in the Initial Lease Schedule is true, correct, and complete as of
its date in all material respects and, as of the Closing Date all information
set forth in the Closing Lease Schedule will be true, correct, and complete in
all material respects as of the date of such Closing Lease Schedule .

 

(vii)                           The Rent Roll
and the operating reports delivered with the Submission Matters are those which
Seller customarily relies upon in the ordinary course of its business.

 

(b)                                 As used in this
Contract, “Seller’s Knowledge” means the current actual knowledge of Robert
A Hinnen, the President of the general partner of the managing member of
Seller, and Thomas A. DiChiara (the “Seller Representatives”) without
regard to the knowledge of others, including any former or other employees,
agents or contractors of Seller. The Seller Representatives shall not have any
personal liability whatsoever for the representations made herein or for any
other matters relating to this Contract.

 

(c)                                  In any action
brought to enforce the obligations of Seller under this Contract or any other document
delivered in connection herewith, the judgment or decree shall be subject to
the provisions of Section 11(a) and shall, otherwise in any event,
be enforceable against Seller only up to an amount not to exceed 1.5% of the
Purchase Price. In connection with this Contract, BlackRock Realty
Advisors, Inc. (“Advisor”) is acting as the investment adviser to
Seller’s limited partner and shall not have any individual liability hereunder.
No shareholder, officer, employee or agent of or consultant to Advisor or of or
to Seller shall be held to any personal liability hereunder, and no resort
shall be had to their property or assets, or the property or assets of Advisor or
of Seller for the satisfaction of any claims hereunder or in connection with
the affairs of Advisor or of Seller. Furthermore, Seller’s liability under this
Contract is explicitly limited to Seller’s interest in the Property, including
any proceeds thereof. Buyer shall have no recourse against any other property
or assets of Seller, any assets of the Advisor, or to any of the past, present
or future, direct or indirect, shareholders, partners, members, managers,
principals,

 

16

 

directors, officers, agents, incorporators,
affiliates or representatives of Seller or the Advisor (collectively, “No
Recourse Parties”) or of any of the assets or property of any of the
foregoing for the payment or collection of any amount, judgment, judicial
process, arbitral award, fee or cost or for any other obligation or claim
arising out of or based upon this Contract and requiring the payment of money
by Seller. Except as otherwise expressly set forth in this Section 11(c),
neither Seller nor any No Recourse Party shall be subject to levy, lien,
execution, attachment or other enforcement procedure for the satisfaction of
any of Buyer’s rights or remedies under or with respect to this Contract, at
law, in equity or otherwise. Buyer shall not seek enforcement of any judgment,
award, right or remedy against any property or asset of Seller or any No
Recourse Parties other than Seller’s interest in the Property or any proceeds
thereof. The provisions of this Section 11(c) shall survive the
termination of this Contract.

 

12.                                 CONDITIONS TO
CLOSING.

 

(a)                                  If any of the
following conditions precedent to Buyer’s obligations under this Contract is not
satisfied, then Buyer may, at its option, waive such condition, or, as Buyer’s
sole and exclusive remedy, terminate this Contract by notice in writing to
Seller and receive back the Earnest Money (including the Option Money, in the
case of a termination under Section 12(a)(i) or (ii), but excluding
the Option Money, in the case of a termination under any other provision of
this Section 12(a)) and neither party shall have any further rights
or obligations pursuant to this Contract, other than as set forth herein with
respect to rights or obligations that survive termination. The following shall
be conditions precedent to Buyer’s obligations hereunder:

 

(i)                                   Seller shall
have complied with all covenants of Seller set forth herein at or before
Closing;

 

(ii)                                All
representations and warranties of Seller shall be true and correct, in all material
respects, as of the Closing Date, without taking into consideration any
qualification to Seller’s Knowledge or the receipt of notice by Buyer or any
representative thereof;

 

(iii)                             On the Closing
Date, there shall be no third party litigation pending or threatened, seeking
to enjoin the consummation of the sale and purchase hereunder, to recover title
to the Property or any part thereof or any interest therein, or to enjoin the
violation of any law, rule, regulation, restrictive covenant or zoning
ordinance with respect to the Land, Improvements or Personal Property; and

 

(iv)                            The Title
Company must be prepared to issue a Title Policy for the property conforming to
the requirements of this Contract, provided that the Title Company’s failure to
issue any endorsements to the Title Policy requested by Buyer shall not affect
Buyer’s obligations under this Contract.

 

(b)                                 If the
following condition to Seller’s obligations under this Contract is not
satisfied, then Seller may, at its option, waive such condition or terminate
this Contract by notice in writing to Buyer, whereupon the Earnest Money (other
than the Option Money) shall be returned to Buyer and neither party shall have
any further rights or obligations pursuant to this Contract, other than as set
forth herein as to rights or obligations that survive termination. The
following is a condition precedent to Seller’s obligations hereunder: the

 

17

 

closing under the Fitzhugh Contract must occur
simultaneously with the Closing under this Contract, which condition includes
but is not limited to Buyer’s tender of the purchase price under the Fitzhugh
Contract and Buyer’s delivery of all its closing deliveries under the Fitzhugh
Contract; provided, however, if factors outside the reasonable control of
Seller or Buyer render a simultaneous closing impracticable, Seller and Buyer
each may adjourn the Closing for up to five business days to coordinate the
simultaneous closings under this Contract and the Fitzhugh Contract. Notwithstanding
any other provision of this Section 12(b) to the contrary:
(i) if the closing under the Fitzhugh Contract does not occur
simultaneously with the Closing under this Contract, as a result of a default
by the seller under the Fitzhugh Contract or Seller under this Contract, then
the provisions of Section 10(b) shall control, and Seller shall
have no right to terminate this Contract pursuant to this Section 12(b);
and (ii) if the Fitzhugh Contract terminates pursuant to Section 10(b)
or Section 12(a)(i) or (ii) of the Fitzhugh Contract,
then Buyer may proceed with the Closing, and Seller shall have no right to
terminate this Contract pursuant to this Section 12(b).

 

13.                                 COVENANTS.

 

(a)                                  Continued
Operations. From the Effective Date until Closing, Seller will
(i) maintain and operate the Property in its current state and condition
in accordance with Seller’s customary manner, reasonable wear and tear and
damage from casualty excepted, (ii) not remove any item of Personal
Property from the Land or Improvements unless replaced by a comparable item of
Personal Property, (iii) maintain all permits, licenses and occupancy
certificates, including all development, building and use permits and
certificates of occupancy, (iv) perform, when due, all material obligations
under any and all agreements relating to the property and otherwise in
accordance with applicable laws, ordinances, rules and regulations,
(v) promptly notify Buyer of any fact of which Seller becomes aware which
causes any representations or warranties of Seller contained in this Contract
to become false in any material respect, and (vi) promptly forward to
Buyer any notices of code violations that Seller receives.

 

(b)                                 Rent Ready
Condition. If any apartment unit is vacated seven days or
more prior to Closing, then, prior to Closing, Seller shall use commercially
reasonable diligence to return such unit to rentable condition in accordance
with Seller’s customary cleaning, painting, and repair standards for vacant
units (the condition of such an apartment unit after cleaning is referred to
herein as a “Rent Ready Condition”). To the extent any such units are
not in a Rent Ready Condition by Closing, the Purchase Price shall be credited
in an amount equal to $500 for each unit that is not in a Rent Ready Condition.

 

(c)                                  Leasing. From the
Effective Date through Closing, Seller shall conduct its leasing activities in
Seller’s normal course of business, including leasing activities in respect of
the retail uses at the Property; provided that Seller will not be required to
pay commissions and the cost of tenant improvements in an amount greater than
required under Sections 13(f) and (g), such excess amounts being
Buyer’s responsibility; and provided further, however, that after the
expiration of the Feasibility Period (i) Seller shall not enter into any
new leases with corporate apartment providers without Buyer’s prior written
approval, (ii) Seller shall not enter into any new leases for retail uses
without Buyer’s prior written approval, and (iii) all new Tenant Leases
shall be on the form of lease currently used by Seller or such other form as
may be approved by Buyer in its reasonable discretion. Not less than one
business day before the expiration of the Feasibility Period, Seller shall
deliver to Buyer copies of any new leases for retail uses

 

18

 

entered into after the Effective Date and before the
business day before the expiration of the Feasibility Period. If Seller
executes any new leases for retail uses after this delivery but before
expiration of the Feasibility Period, Seller shall promptly provide such leases
to Buyer.

 

(d)                                 Website. Seller shall
maintain the Website and related material though the Closing.

 

(e)                                  LEED
Certification; Energy Tax Credits and Incentives. Seller shall use
commercially reasonable efforts to obtain LEED Gold Certification for the
buildings at the Property, whether prior to or after Closing. Seller shall pay
all commercially reasonable costs incurred in connection with obtaining such
certification. All tax credits and incentives available as a result of
sustainable development or LEED certification of the Property shall be retained
by Seller, including but not limited to BETC credits from the State of Oregon
and cash incentives from Energy Trust. Buyer shall (at no cost or expense to
Buyer) reasonably cooperate with Seller’s efforts to obtain LEED Certification
and the tax credits and incentives, which may include execution of consents or
waivers as successor owner of the Property. The provisions of this Section 13(e)
shall survive Closing.

 

(f)                                    Retail Lease
Commissions. At Closing, Seller shall pay to the party entitled
thereto or escrow with Title Company the aggregate amount of all outstanding
commissions owed with respect to the retail units described as Units 1A, 3, 5
and 6 on Exhibit I-1. Such amount will be equal to the amount of
commissions shown on Exhibit I-2 for such units, less any amounts
paid by Seller prior to Closing. Notwithstanding the foregoing or such escrow,
Seller shall be responsible for all outstanding commissions owed with respect
to the retail units described as Units 1A, 3, 5 and 6 on Exhibit I-1,
regardless of whether such amount is greater or less than the amount so
escrowed or the amount of commissions shown on Exhibit I-2 for such
units. Buyer will be responsible for all commissions with respect to the retail
units identified as Units 1B, 1C, 2 and 4 on Exhibit I-1,
regardless of whether any lease with respect to such units is signed before or
after Closing, and Seller will have no liability therefor. Such escrow account
shall be interest bearing, with all interest earned being placed into such
account. Such amounts paid or escrowed shall include both commissions payable
at lease sign-up as well as commissions payable upon the tenant’s taking of
possession of its unit. As a condition to disbursing any escrowed amounts,
Seller shall obtain from each payee thereof a release or other written
confirmation that the amounts paid or to be paid are in full satisfaction of
the amounts then paid to such payee; upon payment of the last installment due
with respect to a lease, such release shall state that no other commissions are
due to such payee with respect to that lease. Upon any presentation by Seller
of written direction indicating payees and amounts and the releases provided by
such payees, Title Company shall forward the indicated commissions from the
escrow account to such payees, or, if Seller’s direction states that Seller
paid any such payees directly, then Title Company shall reimburse Seller from
the escrow account for the amounts so paid by Seller. If, after Closing, Seller
determines that any portion of such commissions is not owed (e.g., if a tenant
fails to take possession of its unit) or if there are funds remaining in the
escrow account after payment of all commissions for all retail leases at the
Property signed prior to Closing, then Seller shall send written notice to both
Title Company and Buyer requesting release of the funds. If Buyer fails to send
written notice to Title Company and Seller objecting to the release of funds
within five days after receipt of Seller’s notice, then Title Company shall
release the funds to Seller. If Buyer, exercising its reasonable discretion,
timely objects to such release of funds, then Title Company shall

 

19

 

retain such funds until Buyer and Seller present
joint direction to the Title Company with respect to the release or until
receiving direction from a court, arbitrator or mediator to whom Seller and
Buyer have referred the controversy. The provisions of this Section 13(f)
shall survive Closing.

 

(g)                                 Retail Unit
Tenant Improvements. At Closing, Seller shall escrow with Title Company
an amount equal to 120% of the sum of all unpaid amounts then incurred or then
reasonably determined by Seller to be incurred thereafter with respect to the
construction of tenant improvements for the retail units identified as Units
1A, 2, 3, 4, 5 and 6 on the attached as Exhibit I-1 pursuant to
tenant improvement construction contracts existing on the Effective Date. Such
amount will be equal to 120% of the cost of tenant improvements shown on Exhibit I-2
for such units, less any amounts paid by Seller prior to Closing.
Notwithstanding such escrow, Seller shall be responsible for all costs of
tenant improvements with respect to such Units 1A, 2, 3, 4, 5 and 6 pursuant to
tenant improvement construction contracts existing on the Effective Date,
regardless of whether such amount is greater or less than the amount so
escrowed; provided that Seller will not be responsible for any additional costs
of tenant improvements for Units 2 or 4 that are incurred pursuant to leases or
other agreements with respect to such units, regardless of whether signed
before or after Closing, Buyer being liable therefor (except that Seller, not
Buyer, will be responsible for any such additional costs incurred pursuant to
any leases it entered into out of compliance with Section 13(c)(i)-(iii)).
Buyer will be responsible for all tenant improvements with respect to the
retail units identified as Units 1B and 1C on Exhibit I-1,
regardless of whether any lease with respect to such units is signed before or
after Closing, and Seller will have no liability therefor (except that Seller,
not Buyer, will be responsible for any such additional costs incurred pursuant
to any leases it entered into out of compliance with Section 13(c)(i)-(iii)).
As a condition to disbursing any escrowed amounts, Seller shall obtain from
each payee thereof a conditional lien waiver from such payee with respect to
the amount so paid or to be paid from such disbursement. Upon any presentation
by Seller of written direction indicating payees and amounts and contingent
lien waivers from such payees, Title Company shall forward the indicated
amounts to such payees or, if Seller’s direction states that Seller paid any
such payees directly, then Title Company shall reimburse Seller from the escrow
account for the amounts so paid by Seller. If, after Closing, Seller determines
that there are funds remaining in the escrow account after payment of all
tenant improvement costs that Seller is required to pay under this paragraph
(less any costs that Seller reasonably determines are no longer necessary to be
paid), then Seller shall send written notice to both Title Company and Buyer
requesting release of the funds. If Buyer fails to send written notice to Title
Company and Seller objecting to the release of funds within five days after
receipt of Seller’s notice, then Title Company shall release the funds to
Seller. If Buyer, exercising its reasonable discretion, timely objects to such
release of funds, then Title Company shall retain such funds until Buyer and
Seller present joint direction to the Title Company with respect to the release
or until receiving direction from a court, arbitrator or mediator to whom
Seller and Buyer have referred the controversy. Upon payment in full of the
amounts required to be paid by Seller under this Section 13(g) Seller
shall deliver to Buyer final lien waivers and releases from all payees thereof;
provided that Seller will not be required to deliver final lien waivers and
releases with respect to any work separately contracted for by Buyer. The
provisions of this Section 13(g) shall survive Closing.

 

14.                                 CONDEMNATION. Immediately
upon obtaining knowledge of the institution of any proceedings for the
condemnation of the Property, or any portion thereof, Seller will notify Buyer 

 

20

 

of the pendency of such
proceedings. If any condemnation proceedings affecting the Property, or any
material portion thereof (a “material portion” being 5% or more of the
improvements on the Property or the absence of reasonable access to the
Property), are commenced or threatened in writing prior to Closing, then Buyer
may, at its option, (i) terminate this Contract whereupon the Earnest
Money (other than the Option Money) shall be refunded to Buyer, and neither
party shall have any further rights or obligations pursuant to this Contract,
other than as set forth herein with respect to rights or obligations that
survive termination; or (ii) waive its objections.

 

15.                                 DAMAGE TO
PROPERTY. Seller agrees to give Buyer prompt notice of any
fire or other casualty affecting the Land, the Improvements or the Personal
Property between the Effective Date and the Closing that would allow Buyer to
terminate this Contract or that Seller reasonably estimates would cost more
than $25,000 to repair. Buyer or its designated agents may enter upon the
Property from time to time during normal business hours and upon advance notice
to Seller in accordance with this Contract for the purpose of inspecting any
such casualty.

 

(a)                                  If, prior to
the Closing, the Property is damaged by a fire or other casualty that would
cost $500,000 or more to repair, then in such event, Buyer may, at its option,
elect to terminate this Contract by written notice to Seller within 20 days
after the date of Seller’s notice to Buyer of the casualty or at the Closing,
whichever is earlier, in which case the Earnest Money (other than the Option
Money) will be refunded to Buyer, and neither party will have any further
rights or obligations hereunder, other than as set forth herein with respect to
rights and obligations which survive termination. If neither Buyer nor Seller
timely makes its election to terminate this Contract, then the Closing will
take place as provided herein without reduction of the Purchase Price, and
there will be assigned to Buyer at the Closing all interest of Seller in and to
any casualty insurance proceeds received or to be received by reason of such
damage or destruction (net of proceeds of rental loss and business interruption
insurance allocable to the period through the Closing Date, amounts expended by
Seller to stabilize or repair the Property and costs incurred by Seller in
making proof of loss or settling claims with insurers) and Seller shall tender
at Closing the deductible amounts under Seller’s insurance policies (including business
interruption and rental loss insurance of Seller that would be applicable to
the period after the Closing).

 

(b)                                 If, prior to
the Closing, the Property is damaged by a fire or other casualty that would
cost less than $500,000 to repair, then in such event (i) this Contract
shall not terminate, (ii) Seller keep Buyer informed of Seller’s remedial
actions with respect to such fire or other casualty, and (iii) at Closing,
Seller shall assign and transfer to Buyer all interest of Seller in and to any
casualty insurance proceeds received or to be received by reason of such damage
or destruction (net of proceeds of rental loss and business interruption
insurance allocable to the period through the Closing Date, amounts expended by
Seller to stabilize or repair the Property and costs incurred by Seller in
making proof of loss or settling claims with insurers) and Seller shall tender
at Closing the deductible amounts under Seller’s insurance policies (including
business interruption and rental loss insurance of Seller that would be
applicable to the period after the Closing). If the damage or destruction
arises out of an uninsured risk, Seller shall elect, by written notice within
10 days of the occurrence of such damage or destruction, either to terminate this
Contract or to close the transaction contemplated hereby with a reduction of
the Purchase Price equal to the costs of repairing the Property, as reasonably
estimated by an engineer engaged by Seller and reasonably acceptable to Buyer.

 

21

 

(c)                                  If and to the
extent that Seller is required in this Section 15 to assign and
transfer to Buyer Seller’s right, title, and interest in and to insurance
proceeds, (i) Seller shall use commercially reasonable efforts to cause
its insurance carriers pay any unpaid insurance proceeds to which Buyer is
entitled (including business interruption and rental loss insurance of Seller
that would be applicable to the period after the Closing) to Buyer and for
Buyer’s benefit, and (ii) if Seller’s insurance carriers do not permit
assignment of such insurance proceeds to Buyer, then upon receipt of all such
unpaid insurance proceeds, Seller shall pay the same to Buyer. The provisions
of this Section 15(c) shall survive the Closing.

 

16.                                 REPRESENTATIONS,
WARRANTIES AND COVENANTS OF BUYER.

 

(a)                                  Buyer’s
Representations. Buyer represents and warrants to Seller, which
representations and warranties shall be deemed made by Buyer to Seller as of
the Effective Date and also as of the Closing Date:

 

(i)                                   Buyer has the
requisite power and authority to purchase the Property as provided in this
Contract and to carry out Buyer’s obligations hereunder, and that all requisite
action necessary to authorize Buyer to enter into this Contract and to carry out
Buyer’s obligations hereunder has been, or on the Closing Date will have been,
taken.

 

(ii)                                No petition has
been filed by or against Buyer under the Federal Bankruptcy Code or any similar
laws, nor does Buyer plan to file any such petition before Closing or within 90
days after Closing.

 

(iii)                             Buyer
acknowledges that California State Teachers’ Retirement System (“CalSTRS”),
a member of Seller’s limited partner, is a unit of the California State and
Consumer Services Agency established pursuant to Title I, Division 1, Parts 13
and 14 of the California Education Code, Sections 22000, et seq., as amended
(the “Education Code”). Buyer further acknowledges that such member is
prohibited from engaging in certain transactions with or for the benefit of an “employer”,
“employing agency”, “member”, “beneficiary” or “participant” (as those terms
are defined or used in the Education Code). In addition, Buyer acknowledges
that such member may be subject to certain restrictions and requirements under
the Education Code. Accordingly, Buyer represents and warrants to Seller that
(1) Buyer is neither an employer, employing agency, member, beneficiary or
participant of CalSTRS; (2) Buyer has not made any contribution or
contributions to CalSTRS; (3) neither an employer, employing agency,
member, beneficiary nor participant of CalSTRS, nor any person who has made any
contribution to CalSTRS, nor any combination thereof, is related to Buyer by
any relationship described in Section 267(b) of the Code; and
(4) neither CALSTRS, BlackRock, nor any Person who Buyer knows to be one
of their Related Parties (collectively an “Investor Person”) has
received or will receive, directly or indirectly, any payment, consideration or
other benefit from, nor does any Investor Person have any agreement or
arrangement with, Buyer or any person or entity affiliated with Buyer, relating
to the transactions contemplated by this Contract except as expressly set forth
or referred to in this Contract.

 

22

 

(iv)          Buyer represents and
warrants to Seller that neither Buyer nor any constituent owner or affiliate
that owns a controlling interest therein is, or shall be at any time from the
Effective Date through the Closing Date, in violation of any laws relating to
terrorism or money laundering (collectively, the “Anti-Terrorism Laws”),
including Executive Order No. 13224 on Terrorist Financing, effective
September 24, 2001, and relating to Blocking Premises and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism
(the “Executive Order”) and/or the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (Public Law 107-56) (the “USA Patriot Act”). Buyer further represents
and warrants that neither Buyer nor any of its constituent owners or affiliates
that own a controlling interest therein is or shall be during the period from
the Effective Date through the Closing Date, a “Prohibited Person,”
which is defined as follows: (i) a person or entity that is listed in the
Annex to, or is otherwise subject to, the provisions of the Executive Order;
(ii) a person or entity owned or controlled by, or acting for or on behalf
of, any person or entity that is listed in the Annex to, or is otherwise
subject to the provisions of, the Executive Order; (iii) a person or
entity with whom the other party is prohibited from dealing with or otherwise
engaging in any transaction by any Anti-Terrorism Law, including without
limitation the Executive Order and the USA Patriot Act; (iv) a person or
entity who commits, threatens or conspires to commit or support “terrorism” as
defined in Section 3(d) of the Executive Order; or (v) a person
or entity that is named as a “specially designated national and blocked person”
on the then-most current list published by the U.S. Treasury Department Office
of Foreign Assets Control at its official website, http://www.treas.gov/offices/eotffc/ofac/sdn/t11sdn.pdf,
or at any replacement website or other replacement official publication of such
list.

 

(b)           Buyer’s Covenants. After
Closing, Buyer shall remove all signage and identifying marks from the Property
referring to Seller’, Seller’s affiliates, Seller’s property manager or the
Excluded IP. Buyer shall notify Seller of the removal and offer Seller the
opportunity to take any such removed signage. Buyer may elect instead to
provide access to the Property after Closing to Seller and Seller’s agents and
employees so that Seller, its agents and employees may instead remove such
signage and identifying marks, at times and for a duration that is commercially
reasonable given the removal to be completed. The provisions of this Section 16(b) shall
survive the Closing.

 

17.           ASSIGNMENT. Except as
otherwise provided herein, Buyer may not assign this Contract without Seller’s
prior written consent, such consent to be given or denied in Seller’s
reasonable discretion. Notwithstanding the foregoing, Buyer may assign its
rights under this Contract, in whole or in part, to (i) any affiliate or
direct or indirect subsidiary of Buyer or (ii) any entity in which Buyer,
or the principals thereof, have control as defined herein. Upon both the
assignment of this Contract and the assignee’s delivery to the Title Company of
the full amount of Closing funds required to be delivered by the Buyer (or its
assignee) to the Title Company, the original Buyer will be released from all
liabilities and obligations under this Contract, provided that such assignee
has assumed all of the liabilities and obligations of the Buyer under this
Contract. For purposes of this Contract, “affiliate” means, in respect
of Buyer: (a) any entity that controls, is controlled by, or is under
common control, with the entity in question, or (b) any entity that participates
in any investment program sponsored by Behringer Harvard Holdings, LLC, or any
of its direct or indirect parents or subsidiaries. For purposes of this
Contract, the term “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the

 

23

 

management and policies of an entity, whether
through the ownership of voting securities or otherwise.

 

18.           EXCHANGE. Buyer may
consummate the acquisition of the Property as part of a like kind exchange (the
“Exchange”) pursuant to Section 1031 of the Internal Revenue Code
of 1986, as amended (the “Code”), and, in connection therewith may
assign its rights under this Contract to a qualified intermediary. Seller will reasonably
cooperate with Buyer in the Exchange provided that Seller is not thereby
required to take any additional risk and Buyer pays any additional costs that
would not otherwise have been incurred by Seller or Buyer had Buyer not
consummated its purchase through the Exchange. Completion of such substitution
or any related exchange is not a condition to sale of the Property as
contemplated by this Contract, and Buyer may not postpone the Closing Date to
allow for completion of such substitution or any related exchange. Buyer agrees
to indemnify and defend Seller and hold Seller harmless from and against any
loss, damage, liability, obligation, claim, suit, cause of action, judgment,
settlement, penalty, fine, cost or expense (including fees and disbursements of
attorneys and other professionals and court costs) arising out of or relating
to Seller’s participation in an exchange that Buyer requests. Under no
circumstances will Seller be obligated to take title to any property (other
than the Property) in order to complete an Exchange.

 

19.           AUDIT BY BUYER. Seller
acknowledges that Buyer may cause to be prepared audited financial statements
with respect to the Property in compliance with the policies of Buyer and
certain laws, including applicable regulations promulgated by the Securities
and Exchange Commission. Seller shall use commercially reasonable efforts to
cooperate with Buyer’s auditors in the preparation of such audited financial
statements (including making available for interview, with reasonable advance
notice from Buyer, by Buyer and Buyer’s auditors the management personnel of
Seller who are responsible for the day-to-day operation of the Property and the
keeping of the books and records in respect of the operation of the Property),
for two years after Closing. In addition, if Seller has audited financial
statements, Seller shall promptly provide Buyer with a copy of such audited
financial statements for the most-recent period for which they have been
prepared. Seller acknowledges that any such audit may require review of records
existing for up to three years prior to the date of Closing, and Seller shall
make available to Buyer any records in Seller’s possession or control covering
such period. If, after the Closing Date, Seller obtains an audited financial
statement for a fiscal period prior to the Closing Date that was not completed
as of the Closing Date, then Seller shall promptly provide Buyer with a copy of
such audited financial statement. Seller acknowledges that providing its
audited financial statements to Buyer does not necessarily obviate Buyer’s need
to perform Buyer’s own audit. The provisions of this Section 19
shall survive the Closing.

 

20.           PUBLICITY. Seller and
Buyer each agrees that (a) prior to the Closing, neither Seller nor Buyer
shall issue any press release with respect to the transaction contemplated by
this Contract without the prior consent of the other, except to the extent
required by applicable law, and (b) after the Closing, either Seller or
Buyer shall have the right to issue a Permitted Release. “Permitted Release”
means a press release announcing the purchase and sale of the Property and the
resulting ownership and control of the Property so long as the release does
not, except to the extent required by applicable law, disclose or reference
(x) the sale price or any other economic terms relating to the Property or
the sale of the Property, (y) the identity of the Seller or its affiliates
or any identifying information relating to Seller and its affiliates (unless
specifically pre-approved in writing by Seller in Seller’s sole discretion), or
(z) any of the Excluded IP (unless specifically pre-approved in writing by
Seller in Seller’s sole discretion). Notwithstanding the foregoing, any press
release other than a Permitted Release issued by either Seller or Buyer shall
be subject to

 

24

 

the review and approval of the other party hereto
(which approval shall not be unreasonably withheld, conditioned or delayed).

 

21.           MISCELLANEOUS.

 

(a)           Any notice required or
permitted to be delivered hereunder shall be in writing and shall be deemed
received: (i) upon receipt when personally delivered; (ii) on the
next business day after deposit when sent by nationally-recognized overnight courier
service, charges prepaid, and properly addressed, for next business day
delivery; or (iii) upon confirmation of successful transmission to each
recipient’s facsimile machine when sent by facsimile; or (iv) upon
transmission by electronic mail (provided that receipt is confirmed by
telephone or in a return electronic mail message sent by the recipient or an
assistant thereof); provided, however, notices sent pursuant to Section 10(c)
shall not be transmitted by electronic mail. For purposes of this Section 21(a),
the addresses of each party will be that set forth below the signature of such
party hereto with a copy to the other addressees set forth below the signature
of such party. Either party may change its address for notice from time to time
by delivery of at least ten days prior written notice of such change to the
other party hereto in the manner prescribed herein.

 

(b)           The Article and
Section headings in this Contract are for convenience of reference only
and shall not be deemed to alter or affect the meaning or interpretation of any
provision hereof. Unless the context otherwise requires, (i) all
references to Sections, Schedules or Exhibits contained in this Contract are
references to sections, schedules and exhibits of or to this Contract, (ii) words
in the singular include the plural and vice
versa, and (iii) words of any gender include each other gender.
Whenever in this Contract, any party is permitted or required to make a
decision in its discretion, give its approval, or elect an option, such party
shall be entitled to act in its sole and absolute discretion in making such
decision, giving such approval, or exercise such option, unless a different
standard is expressly provided in the applicable provision hereof. No provision
of this Contract will be interpreted in favor of, or against, any party hereto
by reason of the extent to which any such party hereto or its counsel
participated in the drafting hereof or by reason of the extent to which any
such provision is inconsistent with any prior draft hereof or thereof.

 

(c)           As used in this Contract the
following words or phrases have the following meanings: (i) “hereby,”
“herein,”  “hereof,” “hereto,” “hereunder”
and words of similar import refer to this Contract as a whole and not to any
particular provision hereof; (ii) “include,” “including” or
derivatives thereof means “including without limitation”; and (iii) “law”
means any statute, regulation, rule, judicial order and any other legal
pronouncement having the effect of law.

 

(d)           Seller shall remove the
Property from the market upon execution of this Contract and deal exclusively
with Buyer until the expiration of the Feasibility Period and thereafter during
the term of this Contract. If Buyer elects to terminate this Contract during
the Feasibility Period, or if this Contract otherwise terminates, then the
requirement to deal exclusively with Buyer shall no longer apply.

 

(e)           This Contract will be
construed under and in accordance with the laws of the State of Oregon, and all
obligations of the parties created hereunder are performable in Multnomah
County, Oregon.

 

25

 

(f)            Any party to this Contract
who is the prevailing party in any legal proceeding against the other party
brought under or with respect to this Contract or transaction will be
additionally entitled to recover court costs and reasonable attorneys’ fees
from the non-prevailing party.

 

(g)           This Contract will be
binding upon and inure to the benefit of the parties hereto, their respective
legal representatives, successors, and permitted assigns. A document or
signature page transmitted by facsimile or circulated by electronic mail
shall be binding on any party whose signature appears thereon.

 

(h)           In case any one or more of
the provisions contained in this Contract shall for any reason be held to be
invalid, illegal, or unenforceable in any respect, such invalidity, illegality,
or unenforceability will not affect any other provision hereof, and this
Contract will be construed as if such invalid, illegal, or unenforceable
provision had never been contained herein.

 

(i)            This Contract constitutes
the sole and only agreement of the parties hereto with respect to the subject
matter hereof and supersedes any prior understandings or written or oral
agreements between the parties respecting the subject matter hereof and cannot
be changed except by their written consent.

 

(j)            Time is of the essence in
the performance of this Contract.

 

(k)           The parties may
execute this Contract in one or more identical counterparts, all of which when
taken together will constitute one and the same instrument.

 

(1)           Whenever any
determination is to be made or action to be taken on a date specified in this
Contract, if such date shall fall upon a Saturday, Sunday or holiday observed
by federal savings banks in the State of Oregon, the date for such
determination or action will be extended to the first business day immediately
thereafter.

 

(m)          Unless
otherwise expressly herein stated to survive, all representations, covenants,
indemnities, conditions and agreements contained in this Contract shall merge
into and be superseded by the various documents executed and delivered at
Closing and shall not survive the Closing. Seller shall have no liability to
Buyer after Closing for any matter disclosed by Seller pursuant to the terms of
this Contract or disclosed to Buyer prior to Closing.

 

(n)           Contemporaneously
with the execution and delivery of this Contract, Buyer has delivered to Seller
and Seller hereby acknowledges the receipt of a check in the amount of $100.00 (“Independent
Contract Consideration”), which amount the parties bargained for and agreed
to as consideration for Buyer’s exclusive right to inspect and purchase the
Property pursuant to this Contract and for Seller’s execution, delivery and
performance of this Contract. The Independent Contract Consideration is in
addition to and independent of any other consideration or payment provided in
this Contract, is nonrefundable, and it is fully earned and will be retained by
Seller notwithstanding any other provision of this Contract to the contrary.

 

(o)           THE REAL
PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION
DISTRICT PROTECTING STRUCTURES. THE REAL PROPERTY IS SUBJECT TO LAND USE LAWS
AND REGULATIONS

 

26

 

THAT, IN FARM OR FOREST ZONES, MAY NOT
AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST
FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, IN ALL ZONES. BEFORE
SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD
INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND
195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007. BEFORE
SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE
REAL PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING
DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY
ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE
APPROVED USES OF THE LOT OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION
FOR STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS,
IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11,
CHAPTER 424, OREGON LAWS 2007.

 

REMAINDER
OF PAGE INTENTIONALLY BLANK.

SIGNATURE
PAGE(S) FOLLOWS.

 

27

 

EXECUTED on the dates set forth below to be effective as of the
Effective Date.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  MISSISSIPPI AVE APARTMENTS LLC,

  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NW 112 Mississippi Ave Apartments Limited Partnership,

  
	
   

  	
   

  	
  a Delaware limited partnership, its managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NW 111 Development GP LLC, a Delaware limited 

  
	
   

  	
   

  	
   

  	
  liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas A. Dichiara

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas A. Dichiara

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  Mississippi Ave Apartments LLC 

  
	
   

  	
  949 South Coast Drive, Suite 400 

  
	
   

  	
  Costa Mesa, California 92626 

  
	
   

  	
  Attention: Eric Lezak

  
	
   

  	
  Telephone: 714-966-9355 x 113 

  
	
   

  	
  Facsimile: 714-966-9353

  
	
   

  	
  Email: elezak@tcresidential.com

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Michael K. Ording, Esq.

  
	
   

  	
  Jones Day

  
	
   

  	
  325 John H. McConnell Blvd., Suite 600 

  
	
   

  	
  Columbus, Ohio 43215

  
	
   

  	
  Telephone: 614-281-3815

  
	
   

  	
  Facsimile: 614-461-4198

  
	
   

  	
  Email: mkording@jonesday.com

  

 

Contract
for Purchase and Sale

Signature
Pages

 

 

	
   

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD
  MULTIFAMILY OP I LP, 

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  BHMF, Inc.,

  
	
   

  	
   

  	
  a Delaware corporation, 

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Robert T. Poynter 

  
	
   

  	
   

  	
  Name:

  	
  Robert T. Poynter 

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Behringer Harvard Multifamily
  OP I LP 

  
	
   

  	
   

  	
   

  	
  15601 Dallas Parkway, Suite 600 

  
	
   

  	
   

  	
   

  	
  Addison, Texas 75001

  
	
   

  	
   

  	
   

  	
  Attention: Mark T. Alfieri

  
	
   

  	
   

  	
   

  	
  Telephone: 214-655-1600

  
	
   

  	
   

  	
   

  	
  Facsimile: 214-655-1610

  
	
   

  	
   

  	
   

  	
  Email: malfieri@behringerharvard.com

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Miller, Egan,
  Molter & Nelson LLP 

  
	
   

  	
   

  	
   

  	
  4514 Cole Avenue, Suite 1250 

  
	
   

  	
   

  	
   

  	
  Dallas, Texas 75205

  
	
   

  	
   

  	
   

  	
  Attention: Walter D. Miller

  
	
   

  	
   

  	
   

  	
  Telephone: 214-628-9502

  
	
   

  	
   

  	
   

  	
  Facsimile: 214-628-9505

  
	
   

  	
   

  	
   

  	
  Email: walt.miller@MillerEgan.com

  

 

Contract
for Purchase and Sale

Signature
Pages

 

 

	
   

  	
  TITLE COMPANY:

  
	
   

  	
   

  
	
   

  	
  The undersigned hereby acknowledges receipt of this Contract and
  agrees to serve as the escrow holder of the Earnest Money and as the Title
  Company in accordance with the provisions of this Contract.

  
	
   

  	
   

  
	
   

  	
  CHICAGO TITLE INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jocelyn Armstrong

  
	
   

  	
  Name:

  	
  Jocelyn Armstrong

  
	
   

  	
  Title:

  	
  Commercial Escrow Officer

  

 

 

EXHIBITS:

A – Description of the Land

B – Special Warranty Deed

C – Bill of Sale

D – Assignment and Assumption Agreement

E – Assignment of Tenant Leases and Assumption

F – Tenant Notice Letter

G –Survey Certification

 

Contract
for Purchase and Sale

Signature
Pages

 

 

EXHIBIT A

 

DESCRIPTION
OF THE LAND

 

Lots 1, 2, 3, 4, 5, 6,
7, 8, 9, 10, 11 and 13 of, Block 25, Multnomah, in the City of Portland, County
of Multnomah and State of Oregon, together with that portion of the vacated
alley lying North of the Westerly Extension of the South Line of Lot 9 and
South of the South Line of N. Failing Street.

 

1

 

EXHIBIT B

to

Contract for Purchase and
Sale

 

FORM OF
SPECIAL WARRANTY DEED

 

After Recording Return To:

 

 

Until a change is requested

all tax statements shall be sent to:

 

 

Mississippi Ave Apartments LLC, a Delaware limited
liability company (“Grantor”), hereby conveys and specially warrants to                                               ,
a                                                         
(“Grantee”), the following described real property: Lots 1, 2, 3, 4, 5, 6, 7,
8, 9, 10, 11 and 13 of, Block 25, Multnomah, in the City of Portland, County of
Multnomah and State of Oregon, together with that portion of the vacated alley
lying North of the Westerly Extension of the South Line of Lot 9 and South of
the South Line of N. Failing Street (the “Property”).

 

The Property is free of all encumbrances created or
suffered by the Grantor, except as set forth in attached Exhibit A,
which is incorporated herein by this reference.

 

THE PROPERTY DESCRIBED IN
THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING
STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS THAT, IN
FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A
RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES AS
DEFINED IN ORS 30.930 IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS
INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S
RIGHTS, IF ANY, UNDER CHAPTER 1, OREGON LAWS 2005 (BALLOT MEASURE 37 (2004)).
BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO
THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING
DEPARTMENT TO VERIFY APPROVED USES, THE EXISTENCE OF FIRE PROTECTION FOR
STRUCTURES AND THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER CHAPTER
1, OREGON LAWS 2005 (BALLOT MEASURE 37 (2004)).

 

The true consideration for
this conveyance is $                        .

 

Dated this           day
of
                   
, 2010.

 

2

 

	
   

  	
  MISSISSIPPI AVE APARTMENTS LLC, 

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NW 112 Mississippi Ave Apartments Limited Partnership,

  
	
   

  	
   

  	
  a Delaware limited partnership, its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  NW 111 Development GP LLC, a Delaware limited

  liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

State of                                             )

                                                            )
SS.

County of                                         )

 

The foregoing instrument was
acknowledged before me
this                 day
of                                       ,
20  , by
                         ,
the
                            
of NW 111 Development GP LLC, a Delaware limited liability company, the general
partner of NW 112 Mississippi Ave Apartments Limited Partnership, a Delaware
limited partnership, the managing member of Mississippi Ave Apartments LLC, a
Delaware limited liability company, on behalf of such entity in such capacity.

 

Witness my hand and official seal.

 

My Commission
Expires:                             

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

[Attach:

Exhibit A 

Exhibit B]

 

3

 

EXHIBIT C

to

Contract for Purchase and
Sale

 

BILL OF SALE

 

	
  STATE OF OREGON

  	
  §

  	
   

  
	
   

  	
  §

  	
  KNOW ALL PERSONS BY THESE PRESENTS:

  
	
  COUNTY OF MULTNOMAH

  	
  §

  	
   

  

 

THAT MISSISSIPPI AVE APARTMENTS
LLC, a Delaware limited liability company (“Seller”), for and in
consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and
valuable consideration to Seller in hand paid by                                                                                                
, a
                                                               
(“Buyer”), the receipt of which is hereby acknowledged, has bargained, sold,
delivered and assigned, and by these presents does bargain, sell, deliver and
assign, unto Buyer all equipment, fixtures, appliances, inventory, computers,
computer hardware, computer software, furniture, furnishings, drapes and floor
coverings, office equipment and supplies, heating, lighting, refrigeration,
plumbing, ventilating, incinerating, cooking, laundry, communication,
electrical, dishwashing, and air conditioning equipment, disposals, window
screens, storm windows, recreational equipment, pool equipment, patio
furniture, sprinklers, hoses, tools and lawn equipment and other tangible
personal property of whatever kind or character owned by Seller and attached to
or installed or located on or in that certain real property situated in
Portland, Multnomah County, Oregon, and the improvements situated thereon, such
tract of land being described on Exhibit A, attached hereto and
made a part hereof for all purposes, including, without limitation, the items
listed on Exhibit B, attached hereto and made a part hereof for all
purposes (collectively, the “Personal Property”).

 

THE PERSONAL PROPERTY IS TRANSFERRED TO BUYER
“AS IS” AND “WHERE IS”  AND WITH ALL
FAULTS, DEFECTS OR OTHER ADVERSE MATTERS. SELLER SPECIFICALLY
DISCLAIMS ALL WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS,
IMPLIED, STATUTORY OR OTHERWISE (INCLUDING WARRANTIES  OF MERCHANTABILITY AND WARRANTIES OF FITNESS
FOR USE OR ACCEPTABILITY FOR THE PURPOSE INTENDED BY BUYER) WITH RESPECT TO
THE PERSONAL PROPERTY OR ITS CONDITION, EXCEPT AS OTHERWISE PROVIDED HEREIN.
CONVEYANCE OF THE PERSONAL PROPERTY IS SUBJECT TO OTHER LIMITATIONS (AND
EXCEPTIONS THEREFROM) CONTAINED IN THE CONTRACT FOR PURCHASE AND SALE, DATED
MAY                        ,
2010, BETWEEN BUYER (AS ASSIGNEE) AND SELLER (THE “PURCHASE CONTRACT”), WHICH
LIMITATIONS SURVIVE THE CLOSING (AS THAT TERM IS DEFINED IN THE PURCHASE
CONTRACT).

 

Seller does hereby bind itself, its successors and
assigns, to forever warrant and defend title to the Personal Property unto
Buyer, its successors and assigns, against every person whomsoever lawfully
claiming or to claim the same or any part thereof, by, through or under Seller,
but not otherwise.

 

REMAINDER
OF PAGE INTENTIONALLY BLANK.

SIGNATURE
PAGE(S) FOLLOWS.

 

4

 

EXECUTED as of the date first set forth above.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  MISSISSIPPI AVE APARTMENTS LLC, 

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NW 112 Mississippi Ave Apartments Limited

  
	
   

  	
   

  	
  Partnership, a Delaware limited partnership, its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NW 111 Development GP LLC, a Delaware limited liability company, its
  general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
  `

  	
   

  	
   

  	
  Title:

  	
   

  

 

5

 

EXHIBIT A

to

Bill of Sale

 

PROPERTY
DESCRIPTION

 

6

 

EXHIBIT B

to

Bill
of Sale

 

LIST OF
PERSONAL PROPERTY

 

[ATTACHED]

 

7

 

EXHIBIT D

to

Contract for Purchase and
Sale

 

ASSIGNMENT
AND ASSUMPTION AGREEMENT

 

THIS ASSIGNMENT
AND ASSUMPTION AGREEMENT (this “Assignment”) is made and
entered into as
of                 ,
2010, by and between MISSISSIPPI AVE
APARTMENTS LLC, a Delaware limited liability company (“Assignor”),
and            , a
                                                                                                                 (“Assignee”).

 

RECITALS:

 

A.                                   Contemporaneously
with the execution and delivery of this Assignment, Assignor is conveying to
Assignee by Special Warranty Deed that certain real property, with the
improvements located thereon, situated in Multnomah County, Oregon (the “Land”)
and being more particularly described on Exhibit A, which is
attached hereto and made a part hereof for all purposes; and

 

B.                                     Assignee
desires to purchase from Assignor, and Assignor desires to sell and assign to
Assignee, certain intangible personal property, as more particularly described
below.

 

AGREEMENTS:

 

NOW, THEREFORE, for and in consideration of the
premises and the agreements and covenants herein set forth, together with the
sum of TEN DOLLARS ($10.00) and other good and valuable consideration on this
day paid and delivered by Assignee to Assignor, the receipt and sufficiency of
which are hereby acknowledged and confessed by Assignor, Assignor does hereby
ASSIGN, TRANSFER, SET OVER, DELIVER and CONVEY unto Assignee, its successors
and assigns, the following properties (collectively, the “Assigned
Properties”):

 

1.                                       The following “Intangibles”:
to the extent assignable, all of Assignor’s right, title, and interest in and
to (i) all bonds, permits, licenses (including software licenses),
approvals, utility rights, development rights and similar rights related to the
Property (as that term is defined in the Contract for Purchase and Sale, dated
May            ,
2010, between Assignee (by way of assignment from its predecessor in interest)
and Assignor (the “Purchase Contract”), or any portion thereof, whether
granted by governmental authorities or private persons, (ii) all
trademarks, trade names, or symbols under which the Property, or any portion
thereof, is operated including the name of “Tupelo Alley”, but excluding the
names “Crow,” “Trammell Crow,” “Trammell Crow Residential,” “TCR” and “Alexan”
and derivatives of any such names and the “TCR” logo as well as trademarks,
trade names, and service marks containing any of such names or such logo
(collectively, the “Excluded IP”), (iii) all telephone numbers and
exchanges serving the Property, or any portion thereof, (iv) all business
and goodwill of Assignor related to the
Property, or any portion thereof, (v) all site plans, surveys, soil and
substrata studies, architectural drawings, “as built” plans and specifications,
engineering plans, floor plans, and landscape plans that relate exclusively to
the Property, or any portion thereof, (vi) all leasing materials and
brochures, ledger cards, leasing records, leasing applications, tenant credit
reports and maintenance and operating records related exclusively to the operation
of Property, or any portion thereof, (vii) all warranties and guaranties
(express or implied) issued in connection with, or arising out of (A) the
purchase and repair of all Personal Property (as that term is defined in the
Purchase Contract) or (B) the construction of any of the improvements
located on the Property, or any portion thereof, but excluding any warranty or
guaranty from the general contractor for the Property or any other

 

8

 

affiliate of Assignor, and (viii) the website
that at the time of Closing has the Internet domain name www.tupeloalley.com (the
“Website”); provided, that (x) Assignee may, at Closing, choose to
exclude the Website from the Property, or (y) if Assignee does not choose
to exclude the Website from the Property at Closing, then no more than 10 days
after Closing, Assignee shall, at Assignee’s expense, change the Internet
domain name of the website to another name that does not include the Excluded
IP and remove all Excluded IP, all links to web sites containing Excluded IP (e.g.
www.tcresidential.com; www.alexanapts.com, etc.), all references to Assignor
and Assignor’s property manager and all addresses, phone numbers, e-mail
addresses and other identifying information relating to Assignor or Assignor’s
property manager from the Website.

 

2.                                       Assignor’s
interest in those service contracts described on Exhibit B, which
is attached hereto and incorporated herein by reference (collectively, “Service
Contracts”).

 

By accepting this Assignment and by its execution
hereof, Assignee hereby assumes and agrees to perform all of the terms,
covenants, and conditions of the Service Contracts on the part of Assignor
therein required to be performed, from and after the date hereof, but not prior
thereto.

 

Assignor agrees that it shall indemnify and hold
harmless Assignee from and against any and all claims, demands, losses,
liabilities, costs and expenses (including reasonable attorneys’ fees) incurred
by Assignee as a result of claims or causes of action being brought against
Assignee, as Assignor’s successor in interest to the Assigned Properties,
arising out of or relating to the Service Contracts and the obligations of
Assignor thereunder accruing prior to and until (but not including) the date
hereof. Assignee agrees that it shall indemnify and hold harmless Assignor from
and against any and all claims, demands, losses, liabilities, costs and
expenses (including reasonable attorneys’ fees) incurred by Assignor as a
result of claims or causes of action being brought against Assignor, as
Assignee’s predecessor in interest to the Assigned Properties, arising out of
or relating to the Service Contracts and the obligations of Assignee thereunder
accruing on or after the date hereof.

 

ASSIGNOR SPECIFICALLY DISCLAIMS ALL WARRANTIES OR
REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE (INCLUDING WARRANTIES OF MERCHANTABILITY) WITH RESPECT TO THE
ASSIGNED PROPERTIES, EXCEPT AS OTHERWISE PROVIDED IN THE PURCHASE CONTRACT.
CONVEYANCE OF THE ASSIGNED PROPERTIES IS SUBJECT TO OTHER LIMITATIONS (AND
EXCEPTIONS THEREFROM) CONTAINED IN THE PURCHASE CONTRACT, WHICH LIMITATIONS
SURVIVE THE CLOSING (AS THAT TERM IS DEFINED IN THE PURCHASE CONTRACT).

 

All of the covenants, terms and conditions set forth
herein shall be binding upon and shall inure to the benefit of the parties
hereto and their respective heirs, executors, legal representatives, successors
and assigns.

 

The parties may execute this Assignment in one or
more identical counterparts, all of which when taken together will constitute
one and the same instrument. If so executed, each of such counterparts is to be
deemed an original for all purposes, and all such counterparts shall,
collectively, constitute one agreement, but in making proof of this Assignment,
it shall not be necessary to produce or account for more than one such
counterpart.

 

REMAINDER
OF PAGE INTENTIONALLY BLANK.

SIGNATURE
PAGE(S) FOLLOWS.

 

9

 

EXECUTED as of the date first set forth above.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  MISSISSIPPI AVE APARTMENTS LLC,

  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NW 112 Mississippi Ave Apartments Limited Partnership, a Delaware
  limited partnership, its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NW 111 Development GP LLC, a Delaware limited liability company, its
  general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  BEHRINIGER HARVARD
  [                              ],
  LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Mark T. Alfieri

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  

 

 

Exhibit A - Property Description

Exhibit B - List of Service Contracts

 

 

10

 

EXHIBIT A

to

Assignment and Assumption
Agreement

 

PROPERTY
DESCRIPTION

 

11

 

EXHIBIT B

to

Assignment and Assumption
Agreement

 

LIST OF SERVICE CONTRACTS

 

[ATTACHED]

 

12

 

EXHIBIT E

to

Contract for Purchase and
Sale

 

ASSIGNMENT
OF TENANT LEASES AND ASSUMPTION 

 

This ASSIGNMENT OF TENANT LEASES AND ASSUMPTION (this
“Assignment”) is made and entered into as of                                            ,
2010, by and between MISSISSIPPI AVE
APARTMENTS LLC, a Delaware limited liability company (“Assignor”),
and
                                       ,
a                                                    
(“Assignee”).

 

AGREEMENTS:

 

Assignor, for good and valuable consideration, the
receipt of which is hereby acknowledged, hereby GRANTS, TRANSFERS and ASSIGNS
to the Assignee the following (collectively, the “Property”): all of
Assignor’s right, title and interest in and to any and all tenant leases
described on the schedule of leases attached as Exhibit A, attached
hereto and made a part hereof (“Lease Schedule”), together with all
franchises, licenses, occupancy agreements, or other similar agreements
demising space in or otherwise permitting occupancy of the improvements now
existing on the land described on Exhibit B, attached hereto and
made a part hereof; and (ii) all refundable security deposits held by
Assignor under the Leases.

 

TO HAVE AND TO HOLD the Property, together with all
and singular the rights, titles, and interests thereto in anywise belonging, to
Assignee, its successors and assigns forever.

 

Assignee hereby assumes and agrees to pay and
perform all of the terms, covenants, conditions and obligations of the Assignor
under or with respect to the Leases arising or accruing on or after the date
hereof (including but not limited to obligations under the Leases with respect
to any refundable security deposits assigned hereby to Assignee), and agrees to
indemnify and hold Assignor harmless from and against any claims, costs or
liabilities in connection with the failure to perform such obligations under
the Leases arising or accruing on or after the effective date hereof. Assignor
agrees to indemnify and hold Assignee harmless from and against any claims,
costs or liabilities in connection with the failure to perform its obligations
under the Leases arising or accruing prior to and until (but not including) the
effective date hereof, including but not limited to obligations under the
Leases with respect to any deposits.

 

ASSIGNOR SPECIFICALLY DISCLAIMS ALL WARRANTIES OR
REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE (INCLUDING WARRANTIES OF MERCHANTABILITY) WITH RESPECT TO THE
PROPERTY, EXCEPT AS OTHERWISE PROVIDED HEREIN. CONVEYANCE OF THE PROPERTY IS
SUBJECT TO OTHER LIMITATIONS (AND EXCEPTIONS THEREFROM) CONTAINED IN THE
CONTRACT FOR PURCHASE AND SALE, DATED MAY       ,
2010, BETWEEN ASSIGNEE (BY WAY OF ASSIGNMENT FROM ITS PREDECESSOR-IN-INTEREST)
AND ASSIGNOR.

 

The parties may execute this Assignment in one or
more identical counterparts, all of which when taken together will constitute
one and the same instrument. If so executed, each of such counterparts is to be
deemed an original for all purposes, and all such counterparts shall,
collectively, constitute one agreement, but in making proof of this Assignment,
it shall not be necessary to produce or account for more than one such
counterpart.

 

EXECUTED as of the date first set forth above.

 

13

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  MISSISSIPPI AVE APARTMENTS LLC,  

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NW 112 Mississippi Ave Apartments Limited Partnership, a Delaware
  limited partnership, its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NW 111 Development GP LLC, a Delaware limited liability company, its
  general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD
  [                           ],
  LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Mark T. Alfieri

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  

 

 

Exhibit A — Lease Schedule 

Exhibit B — Property Description

 

14

 

EXHIBIT A

to

Assignment of Tenant Leases
and Assumption

 

LEASE SCHEDULE

 

[ATTACHED]

 

15

 

EXHIBIT B

to

Assignment of Tenant Leases
and Assumption

 

PROPERTY
DESCRIPTION

 

16

 

EXHIBIT F

to

Contract for Purchase and
Sale

 

FORM OF
TENANT NOTICE LETTER

 

NOTICE TO TENANTS

 

                 ,
20          

 

 

Dear Resident:

 

Notice is hereby given to
the tenants
of                                                          (the
“Property”) that the current owner of the Property has sold the Property to
                                                                     
(“Purchaser”), effective                                      ,
20             .
Purchaser has assumed all of the obligations of landlord under your lease,
including any obligations with respect to your security deposit, if any, which
has been transferred to Purchaser.

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

17

 

EXHIBIT G

to

Contract for Purchase and
Sale

 

TITLE
AFFIDAVIT

 

CERTIFICATE AS TO TITLE MATTERS

 

GF/ORDER NO.:

 

PROPERTY: See attached Exhibit “A”

 

STATE OF TEXAS

 

COUNTY OF

 

The undersigned, Mississippi Ave Apartments LLC
(“Mississippi”), certifies to Chicago Title Insurance Company (the “Company”)
that, except as set forth on any title commitment, pro forma title policy or
title policy with respect to the Property issued by the Company, that the
following is true and correct:

 

1.                                       There are no
unpaid debts for plumbing fixtures, water heaters, floor furnaces, air
conditioners, radio or television antennae, carpeting, rugs, lawn sprinkling
systems, venetian blinds, window shades, draperies, electric appliances,
fences, street paving, or any personal property or fixtures that are located on
the Property described above, and no such items have been purchased on time
payment contracts, and there are no security interests on such property
described in this paragraph that are secured by financing statement, security
agreement or otherwise except as set forth on the attached Exhibit A.

 

2.                                       There are no
loans secured by a lien on such Property except a loan from KeyBank National
Association.

 

3.                                       All labor and
material used in the construction of improvements on the Property in the last
twelve months have been paid for and there are now no unpaid labor or material
claims against the improvements or the property upon which same are situated
except as set forth on the attached Exhibit A.

 

4.                                       No parties,
other than the current owner and tenants under signed leases, are in possession
of the Property.

 

5.                                       To the actual
knowledge of the person signing this Certificate on behalf of Mississippi,
other than as shown on the real property survey dated        
and issued by                      
(the “Survey”), since
May                          ,
2010, there have been no:

 

a.                                       construction
projects on the Property such as new structures, additional buildings, rooms,
garages, swimming pools or other permanent improvements or fixtures;

 

b.                                      changes in the
location of boundary fences or boundary walls on the Property;

 

18

 

c.                                       construction
projects on immediately adjoining property(ies) which encroach on the Property;
or

 

d.                                      conveyances or
replattings of the Property by Mississippi, or the grant or dedication of
easements on, over or across the Property by Mississippi;

 

except, with respect to any of items a. – d., the
matters set forth in Exhibit A.

 

6.                                       Mississippi
understands that the Company is relying on the truthfulness of the statements
made in this affidavit to issue an owner’s title insurance policy in connection
with Mississippi’s sale of the Property and to provide the area and boundary
coverage upon the evidence of the Survey. This Certificate is made only for the
benefit the Company and not for any other parties or persons. This Certificate
does not constitute a warranty or guarantee of the location of improvements.

 

7.                                       Mississippi
understands, and the Company by acceptance of this Certificate agrees, that (i)
Mississippi has no liability to the Company should the information in this
Certificate be incorrect other than information that the person signing this
certificate on behalf of Mississippi knows to be incorrect and does not
disclose to the Company; and (ii) the representations made in. this
Certificate are made only by Mississippi and no partner, officer, employee or
agent of Mississippi, nor the person signing this Certificate on behalf of
Mississippi, has any liability with respect to such representations.

 

	
   

  	
  MISSISSIPPI AVE APARTMENTS LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NW 112 Mississippi Ave Apartments Limited

  Partnership, a Delaware limited partnership, its

  managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NW 111 Development GP LLC, a Delaware

  limited liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

	
  STATE OF TEXAS

  	
  )

  
	
   

  
	
  COUNTY OF

  	
  )

  

 

SWORN TO AND SUBSCRIBED
before me this                               , 2010, by
                                     ,
the Vice President of NW 111 Development GP LLC, a Delaware limited liability
company, the general partner of NW 112 Mississippi Ave Apartments Limited
Partnership, a Delaware limited partnership, the managing member of Mississippi
Ave Apartments LLC, a Delaware limited liability company.

 

	
   

  	
   

  
	
   

  	
  Notary Public, State of Texas

  

 

19

 

EXHIBIT A

to

Title Affidavit

 

EXCEPTIONS

 

20

 

EXHIBIT H

to

Contract for Purchase and
Sale

 

SURVEY CERTIFICATION

 

	
  MAY 13, 2010

  	
  PROJECT NO. 10-10063

  

 

I HEREBY CERTIFY TO MISSISSIPPI AVE APARTMENTS LLC, A DELAWARE LIMITED
LIABILITY COMPANY; BEHRINGER HARVARD MULTIFAMILY OP I LP; AND CHICAGO TITLE
INSURANCE COMPANY OF OREGON: THAT THIS IS A TRUE AND CORRECT SURVEY MAP MADE ON
THE GROUND PER THE FIELD NOTES INDICATED ON THIS SURVEY MAP OF THE LAND AS
DESCRIBED HEREON, AND CORRECTLY SHOWS THE TRUE AND CORRECT LOCATION OF THE
BOUNDARY LINES AND AREA OF THE LAND INDICATED, THE LOCATION AND DIMENSIONS OF
ALL BUILDINGS AND THE LOCATIONS OF ALL OTHER VISIBLE IMPROVEMENTS ON SAID LAND,
INCLUDING BUT NOT LIMITED TO STRUCTURES, FENCES, WALLS AND BARRIERS, ALL
PARKING LOTS OR AREAS (TOGETHER WITH A COUNT OF ALL PARKING SPACES IN SAID
LOTS), OUT-BUILDINGS, WATER COURSES OR DITCHES, AND WALKWAYS, SITUATED ON SUCH
LAND AND ALL EASEMENTS, UTILITIES, RIGHTS-OF-WAY, SETBACK LINES, AND SIMILAR OR
OTHER RESTRICTIONS (VISIBLE OR OF RECORD). THE BUILDINGS AND IMPROVEMENTS DO
NOT OVERHANG OR ENCROACH UPON ANY EASEMENT OR RIGHT-OF-WAY OF OTHERS, AND THERE
ARE NO ENCROACHMENTS EITHER WAY ACROSS THE PROPERTY LINES. THE PROPERTY
SURVEYED CONTAINS 1.46 ACRES AND IS NOT LOCATED WITHIN A FLOOD PLAIN OR
MUDSLIDE AREA AS DEFINED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT UNDER THE FLOOD DISASTER PROTECTION ACT OF 1973 AS AMENDED OR AS
INDICATED BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY, FEMA MAPS, OR THE
NATIONAL FLOOD INSURANCE ADMINISTRATION. THE SURVEY CORRECTLY SHOWS THE
LOCATION AND DIMENSIONS OF ALL ADJOINING ALLEYS, STREETS, ROADS, AND
RIGHTS-OF-WAY, AND DISTANCE OF THE SUBJECT PROPERTY FROM THE NEAREST MAJOR
STREET INTERSECTION. THERE ARE NO VISIBLE (a) IMPROVEMENTS, (b) PARTY
WALLS, (c) –NOT USED– (d) DITCHES, (e) WATER COURSES,
(f) EASEMENTS, (g) ROADS, STREETS OR ALLEYS, (h) RIGHTS-OF-WAY,
(i) ENCROACHMENTS, (j) DISCREPANCIES, OR (k) OVERLAPPING OR CONFLICTS
ON THE SUBJECT PROPERTY EXCEPT AS SHOWN ON THIS SURVEY MAP AND THE SUBJECT
PROPERTY DOES NOT VISIBLY SERVE ANY ADJOINING PROPERTY FOR DRAINAGE, INGRESS,
EGRESS, OR OTHER SIMILAR PURPOSES.

 

I HEREBY CERTIFY THAT THIS SURVEY MAP AND THE SURVEY ON WHICH IT IS
BASED WERE MADE IN ACCORDANCE WITH THE MOST CURRENT MINIMUM DETAIL REQUIREMENTS
FOR ALTA/ACSM LAND TITLE SURVEYS, JOINTLY ESTABLISHED AND ADOPTED BY ALTA AND
ACSM, AND MEETS THE ACCURACY REQUIREMENTS FOR A CLASS A SURVEY, AS DEFINED
THEREIN, AND INCLUDES ITEMS 1 THROUGH 18 OF TABLE A OF THE MINIMUM STANDARD
DETAIL REQUIREMENTS FOR ALTA/ACSM LAND TITLE SURVEYS EXCEPT FOR ITEM 1
(“BOUNDARY MONUMENTS”), ITEM 5 (“CONTOURS”), AND ITEMS 7b2 AND 7b3 (“SQUARE
FOOTAGE OF GROSS FLOOR AREA OF ALL BUILDINGS OR OTHER AREAS”), AND ITEM 12
(“GOVERNMENTAL AGENCY REQUIREMENTS”), AND ITEM 15 (“AERIAL PHOTOGRAMMETRY”),
WHICH HAVE BEEN EXCLUDED. I FURTHER CERTIFY THAT THIS SURVEY MAP WAS PREPARED
BY THE UNDERSIGNED AND THAT THE SURVEY WAS PERFORMED ON THE GROUND BY THE
UNDERSIGNED OR BY QUALIFIED PERSONS UNDER THE DIRECT SUPERVISION AND EMPLOYMENT
OF THE UNDERSIGNED.

 

THIS SURVEY MAY BE RELIED UPON BY BEHRINGER HARVARD HOLDINGS, LLC,
BEHRINGER HARVARD REIT I, INC., BEHRINGER HARVARD MID-TERM VALUE ENHANCEMENT
FUND I LP, BEHRINGER HARVARD SHORT-TERM OPPORTUNITY FUND I LP, BEHRINGER
HARVARD OPPORTUNITY REIT I, INC., BEHRINGER HARVARD STRATEGIC OPPORTUNITY FUND I
LP, BEHRINGER HARVARD STRATEGIC OPPORTUNITY FUND II LP OR BEHRINGER HARVARD
MULTIFAMILY REIT I, INC. (OR ANY OTHER FUND SPONSORED BY OR AFFILIATED WITH
BEHRINGER HARVARD HOLDINGS, LLC) AND THEIR RESPECTIVE AFFILIATES (COLLECTIVELY,
“BEHRINGER”) AND A REFERENCE TO THIS SURVEY MAY BE INCLUDED IN AN OFFERING
MEMORANDUM, REGISTRATION STATEMENT, PROSPECTUS, SALES BROCHURE, ANNUAL OR
QUARTERLY REPORTS, PROXY STATEMENTS, FORMS 8-K OR SIMILAR DOCUMENTS (IN EITHER
ELECTRONIC OR HARD

 

21

 

FORMAT) ISSUED, FILED, OR RELEASED IN CONNECTION
WITH A SALE, FOR FIRM SECURITIZATION, OR ANY LOAN ON THE PROPERTY OR OTHER
TRANSACTION OR REPORTING INVOLVING THE PROPERTY REFERENCED IN THIS SURVEY.

 

 

	
   

  	
  [Signature of Surveyor]

  
	
   

  	
  Registration No.

  
	
   

  	
  [Name, address, telephone number and job number of

  Surveyor].

  

 

22

 

EXHIBIT I-1

to

Contract for Purchase and
Sale

 

RETAIL
UNITS

 

[ATTACHED]

 

23

 

 

24

 

EXHIBIT I-2

to

Contract for Purchase and
Sale

 

COMMISSIONS
AND TENANT IMPROVEMENT COSTS

PROJECTED
TO BE PAID BY SELLER

 

	
  Unit(s)

  	
   

  	
  Remaining

  Projected Commissions

  	
   

  	
  Remaining
  Projected Tenant

  Improvement Costs

  	
   

  
	
  1A

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $0.00

  	
   

  
	
  1B

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $0.00

  	
   

  
	
  1C

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $0.00

  	
   

  
	
  2

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  $

  	
  4,069

  	
   

  	
  $181,059 (aggregate amount
  for Units 2, 3, 4 and 5)

  	
   

  
	
  4

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  $

  	
  6,915

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $0.00

  	
   

  

 

25

 

EXHIBIT J

to

Contract for Purchase and
Sale

 

TENANT ESTOPPEL CERTIFICATE

 

To:        Behringer Harvard Multifamily OP I LP

 

Re:         Tupelo Alley, Portland, Oregon (the “Property”)

 

LEASE INFORMATION:

 

Landlord: 

Tenant: 

Date of Lease: 

Square Footage of Leased Space: 

Suite No./Address of Leased Space:

 

The following statements are made with the knowledge
that the addressee is relying on them in connection with the purchase of the
Property, and the assignment to Behringer Harvard Multifamily OP I LP or its
assignee of the Lease described above (the “Lease”) in connection
therewith, and the addressee’s and its respective lenders, successors and
assigns and successor owners of the Property may rely on them for that purpose.
In addition, the statements in this estoppel may be relied upon by Behringer
Harvard Holdings, LLC, Behringer Harvard REIT I, Inc., Behringer Harvard
Mid-Term Value Enhancement Fund I LP, Behringer Harvard Short-Term Opportunity
Fund I LP, Behringer Harvard Opportunity REIT I, Inc., Behringer Harvard
Strategic Opportunity Fund I LP, Behringer Harvard Strategic Opportunity Fund
II LP, Behringer Harvard Multifamily REIT I, Inc., or Behringer Harvard
Opportunity REIT II, Inc. (or any other investment programs sponsored by
or affiliated with Behringer Harvard Holdings, LLC) and their respective
affiliates (collectively, “Behringer”) and a reference to this estoppel may be
included in a private placement memorandum, registration statement, prospectus,
sales brochure, annual or quarterly reports, proxy statements, Forms 8-K or
similar documents (in either electronic or hard format) issued, filed or
released in connection with a sale, for firm securitization, or any loan on the
Property or other transaction or reporting involving the Property referenced in
this estoppel.

 

The undersigned Tenant under the Lease, concerning
certain space located in Landlord’s building in Multnomah County, Oregon,
hereby certifies as follows:

 

(a)           Attached as Exhibit A are a complete copy of
the Lease and all amendments thereto;

 

(b)           The Lease is in full force and effect and has not been
assigned or amended in any way except as set forth in Exhibit A;

 

(c)           The Lease, as amended as indicated in Exhibit A,
represents the entire agreement between the parties in respect of leasing;

 

(d)           The undersigned now occupies the premises described in the
Lease;

 

(e)           The commencement date of the term of the Lease was
                                       ,
                    ;

 

(f)            The expiration date of the term of the Lease is
                                      ,
            , and
the undersigned has no rights to renew or extend the term of the Lease except
as expressly set forth in the Lease;

 

26

 

(g)           There are no defaults by either Tenant or Landlord under
the Lease, and no event has occurred or situation exists which would, with the
passage of time, constitute a default under the Lease.

 

(h)           All improvements or work required under the Lease to be
made by Landlord to date, if any, have been completed to the satisfaction of
the undersigned;

 

(i)            The undersigned has paid to Landlord a security deposit
in the amount of $                       ;
and

 

(j)            That as of this date there are no actions, whether
voluntary or otherwise, pending against the undersigned under the bankruptcy or
insolvency laws of the United States or any state thereof.

 

EXECUTED
this            day
of                             ,
2010.

 

 

	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

27Exhibit
10.48

 

BURNHAM POINTE APARTMENTS

720-30 S. CLARK STREET,
CHICAGO, ILLINOIS

 

REAL ESTATE SALE AGREEMENT

 

THIS REAL ESTATE SALE AGREEMENT (this “Agreement”)
is made as of the 18th day of June, 2010 (the “Effective
Date”), by and between STARK BURNHAM POINTE LLC,
a Wisconsin limited liability company (“Seller”), with
an office at c/o Stark Investments, 3600 South Lake Drive, St. Francis,
Wisconsin 53235, and BEHRINGER HARVARD
MULTIFAMILY OP I LP, a Delaware limited partnership, (“Purchaser”), with an office at 15601 Dallas Parkway,
Suite 600, Addison, Texas 75001.

 

RECITALS

 

A.                              Seller is the
owner of a certain parcel of real estate (the “Real
Property”) in the City of Chicago, County of Cook, State of
Illinois, which parcel is more particularly described in attached Exhibit A,
and upon which is located a multi-family residential apartment building
including street level retail space commonly known as the “Burnham Pointe
Apartments.”

 

B.                                Seller desires
to sell to Purchaser, and Purchaser desires to purchase from Seller, the
Property (as hereinafter defined), each in accordance with and subject to the
terms and conditions set forth in this Agreement.

 

THEREFORE, in consideration of the above Recitals, the mutual covenants
and agreements herein set forth and the benefits to be derived therefrom, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Purchaser and Seller agree as follows:

 

1.                                       PURCHASE AND
SALE. Subject to and in accordance with the terms and conditions set forth
in this Agreement, Purchaser shall purchase from Seller and Seller shall sell
to Purchaser the Real Property, together with: (i) all buildings and
improvements owned by Seller and located on the Real Property (the “Improvements”) and any and all of Seller’s rights,
easements, licenses and privileges presently thereon or appertaining thereto;
(ii) Seller’s right, title and interest, if any, in and to any land lying
in the bed of any street, alley, road or avenue (whether open, closed or proposed)
within, in front of, behind or otherwise adjoining the Real Property or any of
it, to the extent such land is appurtenant only to the Real Property and not
any other adjacent property owned by Seller or its affiliates;
(iii) Seller’s right, title and interest in and to the leases (the “Leases”) affecting the Property or any part thereof, other
than the Former Tenant Lease Files (as hereinafter defined); (iv) all
furniture, furnishings, fixtures, equipment (excluding computer hardware and
software), tools and other tangible property (collectively, the “Personal Property”) owned by Seller, located on the Real
Property and used solely in connection therewith, a list of which is attached
hereto as Exhibit B; (v) except as otherwise provided herein,
all right, title and interest of Seller under any and all of the union,
maintenance, service, advertising and other like contracts and agreements with
respect to the ownership and operation of the Property (collectively, the “Service Contracts”); all to the extent assignable to

 

1

 

Purchaser and applicable to the period from and after the Closing (as
hereinafter defined); and (vi) Seller’s right, title and interest in and
to all intangible personal property relating to the Real Property and the
Improvements (including governmental permits, licenses and approvals;
warranties and guarantees, architectural drawings, plans and specifications,
as-built drawings for the Property, advertising material, trademarks, trade names
or symbols under which the Property, or any portion thereof, is operated
including the name “Burnham Pointe” and the Internet domain name
www.burnhampointe.com (the “Website”), and
telephone exchange number and, to the extent relating solely to the Real
Property or Improvements, any development rights), if and to the extent
transferable without third party consent or cost or liability to Seller (the “Intangible Personal Property”) (items (i) through
(vi) above, together with the Real Property, are collectively referred to
in this Agreement as the “Property”). All
of the foregoing expressly excludes all property owned by tenants or other
users or occupants of the Property.

 

2.                                       PURCHASE PRICE. The total
consideration to be paid by Purchaser to Seller for the Property is
Eighty-Eight Million and No/100ths Dollars ($88,000,000.00) (the “Purchase Price”). The Purchase Price shall be paid as
follows:

 

2.1                                 Earnest Money.

 

2.1.1                        Seller,
Purchaser and Chicago Title Insurance Company, 712 Main St., Suite 2000E,
Houston, Texas 77002-3223, Attention: Jimmy Erwin, 713-238-9191 telephone,
713-238-9190 fax (james.erwin@fnf.com) (“Escrowee”)
shall concurrently herewith execute Earnest Money Escrow Instructions, in the
form attached hereto as Exhibit D, and Purchaser shall deliver to
Escrowee, within two business days after Purchaser’s receipt of a fully
executed copy or original of this Agreement, earnest money in the sum of Two
Million and No/100ths Dollars ($2,000,000.00), which sum, together with any
interest earned thereon net of investment costs, is referred to in this
Agreement as the “Earnest Money”. The Earnest Money shall be invested as
specified in the Earnest Money Escrow Instructions. Any and all interest earned
on the Earnest Money shall be reported to Purchaser’s federal tax
identification number. Notwithstanding the foregoing, Seller and Purchaser
hereby acknowledge and agree that Two Hundred Fifty Thousand and No/100ths
Dollars ($250,000.00) of the total Earnest Money deposit (sometimes separately
referred to herein as the, “Option Fee”)
shall be deemed earned by Seller immediately as of the Effective Date, with the
Option Fee being owed and paid to Seller (and not returned to Purchaser) in the
event that this Agreement is terminated for any reason (other than pursuant to
Section 7.1, in which event the Option Fee shall be returned to
Purchaser), whether before or after the expiration of the Review Period
(hereinafter defined).

 

2.1.2                        If the
transaction closes in accordance with the terms of this Agreement, at Closing,
the Earnest Money shall be delivered by Escrowee to Seller as part payment of
the Purchase Price. If the transaction fails to close due to a default on the
part of Purchaser, Seller shall have the remedy options provided for in
Section 7.2 below. If the transaction fails to close due to a default on
the part of Seller, Purchaser shall have the remedy options provided for in
Section 7.1 below. The provisions of this Agreement regarding the
disposition of the Earnest Money and the Option Fee following a termination of
this Agreement shall survive termination of this Agreement.

 

2

 

2.2                                 Cash at Closing. At Closing,
Purchaser shall pay to Seller, with current, federal funds wire transferred to
an account designated by Seller in writing, an amount equal to the Purchase
Price, minus the sum of the Earnest Money which Seller shall receive at Closing
from the Escrowee, and plus or minus, as the case may require, the closing
prorations and adjustments to be made pursuant to Section 4.4 below.

 

3.                                       EVIDENCE OF
TITLE.  

 

3.1                                 Title Insurance. Seller shall,
within fifteen (15) days after the Effective Date, deliver to Purchaser a
current commitment for an ALTA Form 2006 Owner’s Title Insurance Policy
(the “Title Commitment”), in the amount of
the Purchase Price, issued by Chicago Title Insurance Company (national office
located at 171 N. Clark Street, Chicago, Illinois) (“Title
Insurer”). For purposes hereof, the term “Owner’s Policy” shall mean
a basic form of ALTA 2006 Owner’s Title Insurance Policy insuring fee simple
title to the Real Property and Improvements issued by the Title Insurer
pursuant to the Title Commitment, including all standard and general exceptions
and exclusions raised in such form of owner’s policy. At Closing, subject to
the provisions of Section 14.21 below, Seller shall, at its sole cost and
expense, cause the Title Insurer to issue the Owner’s Policy (or “marked-up” title
commitment unconditionally committing the Title Insurer to issue such Owner’s
Policy) to Purchaser, pursuant to and in accordance with the Title Commitment,
insuring fee simple title to the Real Property and the Improvements thereon in
Purchaser as of the Closing Date, subject only to the Permitted Exceptions and
those other exceptions as Purchaser may approve or be deemed to have approved
pursuant to Section 3.3 below. Purchaser may request that Title Insurer
issue, but Seller shall have no obligation to pay for or to cause Title Insurer
to issue, any available endorsements to the Owner’s Policy. For purposes
hereof, the term “Permitted Exceptions” shall mean collectively, (i) the
general exceptions (unless Purchaser obtains coverage over the general
exceptions), (ii) those exceptions which are more fully described on
attached Exhibit E and (iii) exceptions which become Permitted
Exceptions pursuant to Section 3.3. Except as permitted under this
Agreement, no additional encumbrances may be created on the Property by Seller
after the Effective Date without the prior consent of Purchaser, which consent
may not be unreasonably withheld, conditioned, or delayed.

 

3.2                                 Survey. Within five
(5) days after the Effective Date, Seller shall deliver to Purchaser one
copy of the most recent existing plat of survey (if any) of the Real Property (the
“Existing Survey”) in Seller’s
possession. Purchaser may obtain, at Seller’s expense, an updated or new
as-built survey of the Real Property (the “Updated Survey”)
prepared by the surveyor who provided the Existing Survey, in which event,
Purchaser shall deliver the Updated Survey to Seller and Title Insurer as soon
as practicable after receipt by Purchaser.

 

3.3                                 Title Review. Purchaser
shall have until the date which is five (5) days prior to expiration of
the Review Period (as hereinafter defined) (the “Title Review
Period”) to give Seller a detailed notice objecting to any exception
or condition contained in the Title Commitment or shown on the Updated Survey,
if any, other than those Permitted Exceptions which are listed on Exhibit E.
If Purchaser does not give notice of any objections to Seller within the Title
Review Period, Purchaser shall be deemed to have approved the title as shown in
the Title Commitment, the title exceptions, and all matters shown on the
Existing Survey or the Updated Survey, if any, and any such exceptions or
matters shall become “Permitted

 

3

 

Exceptions”. If Purchaser provides timely objections, Seller shall have
until the date which is one (1) business day prior to the expiration of
the Review Period (the “Title Cure Period”)
in which to elect, by written notice to Purchaser, either (i) to cure or
attempt to cure Purchaser’s objections, or (ii) not to cure Purchaser’s
objections; provided, however, notwithstanding the foregoing, Seller shall have
no obligation whatsoever to cure or attempt to cure any of Purchaser’s
objections. Notwithstanding the preceding sentence, Seller shall be obligated,
at Closing, to cause Title Insurer to remove (by waiver or endorsement) any (a) mortgage
or deed of trust granted by Seller affecting the Property and
(b) mechanic’s liens with respect to work contracted for by Seller (but
not mechanic’s liens with respect to work contracted for by tenants or other
occupants of the Property) at the Property, provided that Seller has received
written notice of any such mechanic’s lien prior to Closing (collectively, the “Required Cure Items”). In the event that Seller fails to
provide such written notice of its election to proceed under either clause
(i) or (ii) above, Seller shall be deemed to have elected clause
(ii) above. At Seller’s cost and expense, Seller may bond around any such
matters to Title Insurer’s reasonable satisfaction or cause Title Insurer to
endorse over any such objection, and in either event, such objection shall be
deemed cured. If Purchaser provides timely objections and all of Purchaser’s
objections are not cured (or agreed to be cured by Seller in writing prior to
Closing) within the Title Cure Period for any reason, then, on or before the
last day of the Review Period Purchaser shall, as its sole and exclusive
remedy, waiving all other remedies, either: (x) terminate this Agreement
by giving a termination notice to Seller, at which time Escrowee shall return
the Earnest Money (specifically excluding the Option Fee, which shall be paid
to Seller) to Purchaser and the parties shall have no further rights,
liabilities, or obligations under this Agreement (other than those that
expressly survive termination); or (y) waive the uncured objections by not
terminating this Agreement pursuant to this Section 3.3 and thereby be
deemed to have approved the Purchaser’s title as shown in the Title Commitment
the title exception documents, the Existing Survey or the Updated Survey, if
any, and any such uncured objections shall become “Permitted Exceptions”. If
Seller does not timely receive notice of Purchaser’s election to terminate
under this Section 3.3, Purchaser will be deemed to have waived the
uncured objections and to approve the title as shown in the Title Commitment
the title exception documents, the Existing Survey or the Updated Survey, if
any, and such uncured objections shall become “Permitted Exceptions”.
Notwithstanding the foregoing, if the Title Commitment raises a title exception
related to that certain Mechanic’s Lien Foreclosure Case filed by Elston
Window & Wall in the Circuit Court of Cook County as Case
No. 08CH46079 and Seller is not able to cause the Title Insurer to remove
or insure over such exception at Closing, then Purchaser shall have the option
of either (i) completing the Closing pursuant to the terms of this
Agreement, in which event Purchaser waives any and all claims related to said
title exception, or (ii) terminating this Agreement and receiving a refund
of the Earnest Money (including the Option Fee), in which event this Agreement
shall be null and void and neither party shall have any obligations under this
Agreement except those which expressly survive termination.

 

3.4                                 Tenant Estoppel Certificate. Seller shall
request and use reasonable efforts to secure from the dry cleaning tenant that
is occupying a portion of the retail space in the Improvements a tenant estoppel
certificate (“Estoppel Certificate”) that is commercially reasonable in
form and substance; provided, however, that under no circumstances shall
delivery of the Estoppel Certificate be a condition to Closing, or shall
Seller’s failure to deliver the Estoppel Certificate constitute a breach or
default under this Agreement. It is agreed that Seller’s

 

4

 

delivery of the Estoppel Certificate shall not be deemed to be a
material obligation under this Agreement.

 

4.                                       CLOSING.

 

4.1                                 Closing Date. The “Closing” of the transaction contemplated by this Agreement
(that is, the payment of the Purchase Price pursuant to a so-called “New York
style” closing, the transfer of title to the Property, and the satisfaction of
all other terms and conditions of this Agreement) shall occur through escrow on
or before 5:00 p.m. (Central Time) on the fifth (5th) business day
following the expiration of the Review Period (hereinafter defined), at the
Houston office of Title Insurer, or at such other time and place as Seller and
Purchaser shall agree in writing (with the parties hereby acknowledging and
agreeing that at the election of Seller or Purchaser, this transaction may be
closed by mail utilizing written escrow instructions not inconsistent with the
terms of this Agreement and applying to the specifics of the transaction contemplated
by this Agreement). The “Closing Date”
shall be the date of Closing.

 

4.2                                 Seller’s Closing Deliveries. At Closing,
Seller shall execute and deliver to Purchaser the following:

 

4.2.1 a “special” Warranty
Deed (the “Deed”) in the form attached hereto
as Exhibit G, subject to the exceptions listed on Exhibit F
attached hereto;

 

4.2.2 a bill of sale in the
form attached hereto as Exhibit H;

 

4.2.3 a letter advising
tenants under the Leases of the change in ownership of the Property in the form
attached hereto as Exhibit I;

 

4.2.4 an Assignment and
Assumption of Leases, Security Deposits and Service Contracts in the form
attached hereto as Exhibit J;

 

4.2.5 an Assignment and
Assumption of Intangibles in the form attached hereto as Exhibit K;

 

4.2.6 an affidavit stating,
under penalty of perjury, Seller’s U.S. taxpayer identification number and that
Seller is not a foreign person within the meaning of Section 1445 of the
Internal Revenue Code;

 

4.2.7 such evidence of
Seller’s power and authority as Title Insurer may reasonably require;

 

4.2.8 a closing statement
(the “Closing Statement”), as required by
Section 4.4 below, setting forth the prorations and adjustments to the
Purchase Price;

 

4.2.9 an update of the Rent
Roll (as hereinafter defined), dated not later than five (5) days before
the Closing Date, certified by Seller

 

5

 

as being, to Seller’s knowledge (as defined in
Section 10.2), true, correct and complete in all material respects; and

 

4.2.10  subject to the provisions of Sections 7.3 and
10.6, a certificate updating Seller’s representations and warranties set forth
in Section 10.1 as if made on the Closing Date.

 

4.3                                 Purchaser’s Closing
Deliveries. At Closing, Purchaser shall execute and deliver to
Seller the following:

 

4.3.1 the funds required
pursuant to Section 2.2 above;

 

4.3.2 a counterpart original
of the Closing Statement referenced in Section 4.2.8 above;

 

4.3.3 counterpart originals
of the Assignment and Assumption of Leases, Security Deposits and Service
Contracts referenced in Section 4.2.4 above;

 

4.3.4 counterpart originals
of the Assignment and Assumption of Intangibles referenced in
Section 4.2.5 above;

 

4.3.5 counterpart originals
of the bill of sale referenced in Section 4.2.2 above.

 

4.3.6 such evidence of
Purchaser’s power and authority as Title Insurer may reasonably require; and

 

4.3.7 a certificate updating
Purchaser’s representations and warranties as if made on the Closing Date as
being true and correct in all material respects (provided that modification of
the representation in Section 10.4.1 to reflect that any assignee of
Purchaser is a limited liability company shall be permitted and shall not be
deemed to breach such representation so long as said limited liability company
is a “Permitted Assignee” (as defined in Section 14.3 below) and Purchaser
and such Permitted Assignee have otherwise complied with all of the
requirements of said Section 14.3 below).

 

4.4                                 Closing Prorations and
Adjustments. Seller shall prepare the Closing Statement of the
prorations and adjustments required by this Agreement and submit it to
Purchaser at least two (2) business days prior to the Closing Date. The
following items are to be prorated, adjusted or credited (as appropriate) as of
the close of business on the Closing Date, it being understood that solely for
purposes of prorations and adjustments, Seller shall be deemed to be the owner
of the Property on the Closing Date and Purchaser shall be deemed to be the
owner of the Property as of the date following the Closing Date:

 

4.4.1 Real estate and
personal property taxes and assessments (referred to herein collectively as the
“Taxes”) shall be paid as follows:

 

 

6

 

1.                                       All Taxes due
and owing as of the Closing Date shall be paid by Seller at or prior to the
Closing;

 

2.                                       The 2009 second
installment real estate tax bill (to be issued and due in late autumn of 2010)
shall be paid by Seller when due as provided for in this Section 4.4.1.2
At Closing, Seller shall deposit in escrow with the Title Insurer pursuant to
escrow instructions mutually agreeable to Seller and Purchaser, the sum of
$582,000, which the parties anticipate will be sufficient to pay the 2009
second installment real estate tax bill. Purchaser shall secure the 2009 second
installment real estate tax bill and deliver copies of the bill to the Title
Insurer and also to Seller. Within five (5) business days after Seller
receives a copy of the 2009 second installment real estate tax bill from Purchaser,
Seller shall deposit with the Title Insurer the amount of any excess of the
2009 second installment real estate tax bill over the amount originally
deposited in the escrow (referred to herein as Seller’s “Additional
Tax Payment Obligation”), if any. If Seller has an Additional Tax
Payment Obligation and Seller fails to make such payment in a timely manner,
Purchaser may deposit the amount of such excess with the Title Insurer, and
Seller shall reimburse Purchaser on demand for the amount of such deposit. Upon
receipt of the 2009 second installment real estate tax bill and funds
sufficient to pay the 2009 second installment real estate tax bill, the Title
Insurer shall pay the 2009 second installment real estate tax bill and notify
Seller and Purchaser that it has done so by mailing the original paid receipt
to Seller with a copy to Purchaser. If the funds originally deposited in escrow
exceed the amount of the 2009 second installment real estate tax bill, the
Title Insurer shall refund the overdeposit to Seller promptly after the Title
Insurer has made payment of the 2009 second installment real estate tax bill.
Provided that Seller timely complies with its Additional Tax Payment
Obligation, Seller shall have no obligation for any late fee payments or
penalties attributable to the late payment of the 2009 second installment real
estate tax bills.

 

3.                                       With respect to
the 2010 real estate taxes on the Property (payable in 2011), Purchaser shall
receive a credit from Seller at Closing in the amount of Five Hundred Thousand
and No/100 Dollars ($500,000.00) and Purchaser shall thereafter be solely and
entirely responsible for the payment of the 2010 real estate taxes on the
Property. Other than the foregoing $500,000.00 credit from Seller to Purchaser
at Closing, Seller shall have no obligation with respect to the payment of the
2010 real estate taxes on the Property, and there shall be no post-closing
adjustment of such credit.

 

4.4.2 the rent payable by
tenants under the Leases; provided, however, that rent and all other sums which
are due and payable to Seller by any tenant but uncollected as of the Closing
(collectively, the “Delinquent Amounts”)
shall not be adjusted at Closing. Seller and Purchaser agree that all rent
received by Seller or Purchaser after Closing will be applied first to rents
that became due and payable after Closing, and second, to those which were due
and payable prior to Closing, in reverse order of maturity. Purchaser

 

7

 

shall make a good faith effort after Closing to
collect all Delinquent Amounts in the usual course of Purchaser’s operation of
the Property, but Purchaser will not be obligated to institute any lawsuit or
other collection procedures to collect such Delinquent Amounts, and all
Delinquent Amounts, if any, collected by Purchaser, shall be remitted to Seller
promptly upon receipt by Purchaser; provided, however, any Delinquent Amounts
received by Purchaser will first be applied to the then-current portion of such
tenant’s rent, then to costs incurred by Purchaser in collecting the delinquent
rents, and then (and only then) to Delinquent Amounts owed with respect to the
period before Closing. At Closing, Seller shall deliver to Purchaser a schedule
of all such Delinquent Amounts. In the event any Delinquent Amount is
inadvertently omitted from such schedule, Seller shall not be deemed to have
waived its rights to such Delinquent Amount;

 

4.4.3 the amount of
unapplied refundable security deposits held by Seller under the Leases;

 

4.4.4 water, electric,
telephone and all other utility and fuel charges, fuel on hand (at cost plus
sales tax); provided, however, that any deposits with utility companies shall
remain the property of the Seller and shall not be prorated or credited (to the
extent possible, utility prorations will be handled by meter readings on the
day immediately preceding the Closing Date);

 

4.4.5 amounts due and
payable by Seller under the Service Contracts but excluding any lump sum or up
front payments paid to Seller with respect thereto;

 

4.4.6 assignable license and
permit fees;

 

4.4.7 other similar items of
income and expenses of operation; and

 

4.4.8 with respect to Leases
for commercial or retail space, additional rent in the amount currently being
collected by Seller under the Leases to cover taxes, insurance, utilities,
maintenance and other operating costs and expenses (collectively,  “Operating Expense
Pass-throughs”) incurred by Seller in connection with the ownership,
operation, maintenance and management of the Property. If Seller collected
estimated prepayments of Operating Expense Pass-throughs in excess of any
tenant’s share of such expenses, then if the excess can be determined by the
Closing, Purchaser shall receive a credit for the excess or, if the excess
cannot be determined at Closing, Purchaser shall receive a credit based upon an
estimate, and the parties shall make an adjusting payment between them when the
correct amount can be determined. In either event, Purchaser shall be
responsible for crediting or repaying those amounts to the appropriate tenants.
If Seller collected estimated prepayments of Operating Expense Pass-throughs

 

8

 

attributable to any period after Closing, Seller
shall pay or credit any such amounts to Purchaser at Closing.

 

Except with respect to Taxes
(which shall be paid as specified in Section 4.4.1 above), any proration
which must be estimated at Closing shall be reprorated and finally adjusted as
soon as practicable after the Closing Date; otherwise, subject to the
provisions of Section 4.4.2 above, all prorations shall be final. In
addition, notwithstanding anything to the contrary contained in this
Section 4, Seller reserves the right (i) to meet with governmental
officials and to contest any reassessment governing or affecting Seller’s
obligations under Section 4.4.1 above, and (ii) to contest any
assessment of the Property or any portion thereof and to attempt to obtain a
refund for any taxes previously paid. Seller shall retain all rights with
respect to any refund of taxes applicable to any period prior to the Closing
Date. The obligations of Purchaser and Seller under Section 4.4 of this
Agreement shall survive the Closing.

 

4.5                                 Transaction Costs. Seller shall
pay for any base premium due in connection with the Owner’s Policy (the “Base Premium”) which shall be net of any reissue discount
which may be available from Title Insurer in connection with the delivery of an
existing owner’s policy of title insurance, and one-half (1/2) of Escrowee’s
standard escrow fees. All other closing and transaction costs (including,
without limitation, title insurance premiums or other title costs in excess of
the Base Premium (including, without limitation, premiums for any endorsements
to the Owner’s Policy, premiums for any loan policy or endorsements thereto
required by Purchaser’s lender, if any), transfer taxes, documentary stamps or
similar charges, recording charges, any costs relating to the Updated Survey
and one-half (1/2) of Escrowee’s standard escrow fees) shall be paid by
Purchaser. Notwithstanding Purchaser’s obligation to pay all state, county, and
municipal real estate transfer taxes, Seller shall contribute a total of
$200,000.00 toward Purchaser’s payment of state, county, and municipal real
estate transfer taxes by providing Purchaser with a credit therefor on the
closing statement described in Section 4.2.8 above. Subject to
Section 14.19, Seller and Purchaser shall, however, be responsible for the
fees of their respective attorneys. This Section 4.5 shall survive any
termination of this Agreement.

 

4.6                                 Possession. Upon Closing,
Seller shall deliver to Purchaser possession of the Property, subject to such
matters as are permitted by or pursuant to this Agreement.

 

5.                                       CASUALTY LOSS
AND CONDEMNATION. Prior to closing, the risk of loss shall remain
with Seller. If, prior to Closing, the Property or any part thereof shall be
condemned, or destroyed or damaged by fire or other casualty, Seller shall
promptly so notify Purchaser. If the Property or any part thereof shall be
condemned such that damages are in excess of Seven Hundred Fifty Thousand and
No/100ths Dollars ($750,000.00), (as determined by an MAI certified appraiser
selected by Seller) or if the Property or any part thereof shall be destroyed
or damaged by fire or other casualty the repair of which would cost in excess
of Seven Hundred Fifty Thousand and No/100ths Dollars ($750,000.00) (as
determined by the insurance adjuster designated by Seller’s insurance company),
then, at the option of Purchaser, which option shall be exercisable, if at all,
by written notice thereof to Seller within ten (10) business days after
the date that Purchaser has received both written notice of such fire,
earthquake or other casualty or condemnation and the insurance adjuster’s
determination of resulting damages,

 

9

 

this Agreement may be terminated. If Purchaser so elects to terminate
this Agreement, the Earnest Money (specifically excluding the Option Fee, which
shall be paid to Seller) shall be returned to Purchaser by Escrowee, in which
event this Agreement shall, without further action of the parties, become null
and void and neither party shall have any rights or obligations under this
Agreement, except those which expressly survive termination. In the event that
Purchaser does not exercise the option to terminate the Agreement set forth
above, or if the condemnation or casualty is below the $750,000 threshold
described above, then, subject to the provisions of this Agreement, the Closing
shall take place on the Closing Date and Purchaser shall be entitled to
receive: (a) with respect to a condemnation, an assignment of all of
Seller’s right, title and interest in and to the condemnation proceeds to be
awarded to Seller as a result of such condemnation, and (b) with respect
to a casualty, assignment of Seller’s interest in any then unpaid insurance
proceeds claimed with respect to the loss which is the subject of the casualty
and a payment from Seller of all insurance proceeds theretofore paid to Seller
with respect to same and not used for restoration or repair (provided, however,
Purchaser shall have the right to approve, in its reasonable discretion, any
such restoration or repair and the amounts expended in connection therewith by
Seller except to the extent that any such restoration or repair, in the
Seller’s reasonable judgment, is necessary to comply with applicable laws,
rules, regulations or ordinances or to avoid imminent danger to persons or
property) plus a credit against the Purchase Price equal to the deductibles
under Seller’s respective insurance policies. In addition, in the event of the
foregoing, Purchaser shall deliver to Seller at Closing a release in form and
substance reasonably satisfactory to Seller and Purchaser whereby Purchaser
releases Seller from all ongoing liability and/or claims in connection with
such condemnation or casualty.

 

Notwithstanding anything to the contrary contained in this
Section 5, in the event any condemnation below the $750,000 threshold
described above either (i) prohibits, as a matter of applicable law, the
rebuilding or repair of the Improvements substantially as they currently exist
or (ii) prevents access to the Property from a publicly dedicated street,
then Purchaser may elect to terminate this Agreement by written notice thereof
to Seller within ten (10) business days of such determination, and upon
the exercise of such option by Purchaser, this Agreement shall become null and
void, the Earnest Money (specifically excluding the Option Fee, which shall be
paid to Seller) shall be returned to Purchaser and neither party shall have any
further liability or obligations hereunder, except those that expressly survive
termination.

 

If and to the extent that Seller is required in this Section 5 to
assign and transfer to Purchaser any of Seller’s right, title and interest in
and to insurance proceeds, Seller shall cooperate with Purchaser’s efforts, in
all reasonable respects, to cause Seller’s insurance carriers to pay any unpaid
insurance proceeds to Purchaser and for Purchaser’s benefit.

 

6.                                       BROKERAGE. Seller agrees
to pay upon Closing (but not otherwise) a brokerage commission due to CB
Richard Ellis, Inc. pursuant to a separate agreement for services rendered
in connection with the sale and purchase of the Property. Seller and Purchaser
shall each indemnify and hold the other harmless from and against any and all
claims of all other brokers and finders claiming by, through or under the
indemnifying party and in any way related to the sale and purchase of the
Property, this Agreement or otherwise, including, without limitation,
attorneys’ fees and expenses incurred by the indemnified party in connection
with such claim. This Section 6 shall survive the termination of this
Agreement.

 

10

 

7.                                       DEFAULT AND
REMEDIES.

 

7.1                                 Purchaser’s Pre-Closing
Remedies. Notwithstanding anything to the contrary contained
in this Agreement, if Seller fails to perform in accordance with the terms of
this Agreement at or prior to Closing, and such failure continues for five
(5) days following notice thereof from Purchaser to Seller (provided,
however, that Seller shall not be entitled to any such notice or cure period
for any default under Sections 4 or 14.9), and Purchaser is not in material
default hereunder, then, as Purchaser’s sole and exclusive remedy hereunder and
at Purchaser’s option, either (i) the Earnest Money (including the Option
Fee) shall be returned to Purchaser, in which event this Agreement shall be
null and void, and neither party shall have any rights or obligations under
this Agreement except those which expressly survive termination and except that
Seller shall reimburse Purchaser for all actual, reasonable out-of-pocket
expenses (including, without limitation, reasonable out-of-pocket attorneys’
fees, engineering fees, consultants’ fees, and environmental consultant fees)
paid by Purchaser in connection with its due diligence, inspection and
negotiation of the possible acquisition of the Property, in an amount not to
exceed $25,000 in the aggregate (provided Purchaser promptly provides written
evidence of such expenses to Seller) , or (ii) upon notice to Seller not
more than ten (10) days after Purchaser becomes aware of such failure, and
provided an action is filed within forty-five (45) days thereafter, Purchaser
may seek specific performance of this Agreement, but not damages. Purchaser’s
failure to seek specific performance as aforesaid shall constitute its election
to proceed under clause (i) above. Notwithstanding the foregoing, nothing
in this Section 7.1 shall limit the indemnification obligation of Seller
under Section 6 of this Agreement.

 

7.2                                 Seller’s Pre-Closing
Remedies. If Purchaser fails to perform in accordance with
the terms of this Agreement, and such failure continues for five (5) days
following notice thereof from Seller to Purchaser (provided, however, that
Purchaser shall not be entitled to any such notice or cure period for any
default under Sections 4 or 14.9), and Seller is not in material default
hereunder, Seller shall have the right to terminate this Agreement by
delivering written notice to Purchaser whereupon the Earnest Money shall be
forfeited to Seller as liquidated damages (which shall be Seller’s sole and
exclusive remedy against Purchaser), it being agreed between the parties hereto
that the actual damages to Seller in such event are impractical to ascertain
and the amount of the Earnest Money is a reasonable estimate thereof and shall
be and constitute valid liquidated damages, at which time this Agreement shall
be null and void and neither party shall have any rights or obligations under
this Agreement. Notwithstanding the foregoing, nothing in this Section 7.2
shall limit any indemnification obligation of Purchaser under this Agreement.

 

7.3                                 Pre-Closing Knowledge. If at any
time after the execution of this Agreement, either Purchaser or Seller becomes
aware of any fact or information which makes a representation and warranty of
Seller contained in this Agreement to become untrue “in any material respect”
(defined below), said party shall promptly disclose such fact in writing to the
other party hereto. If Seller has not taken a willful act which is unpermitted
under this Agreement to cause the representation to become untrue, Seller shall
not be in default under this Agreement and the sole remedy of Purchaser shall
be to either (i) terminate this Agreement by written notice within five
(5) business days of the date on which Purchaser becomes aware of such
fact (“Notice Date”), in which event the
Earnest Money (excluding the Option Fee, which

 

11

 

shall be paid to Seller) shall be returned to Purchaser, and this
Agreement, without further action of the parties, shall become null and void
such that neither party shall have any further rights or obligations under this
Agreement except for those rights and obligations which by their terms
expressly survive any such termination, or (ii) subject to the provisions
of this Agreement, elect to proceed to Closing, in which case Purchaser shall
be deemed to have waived its rights with respect to any such breach of
representation or warranty. In the event that Purchaser fails to deliver such
termination notice to Seller on or before the Notice Date, then Purchaser shall
conclusively deemed to have elected to proceed under clause (ii) of the
preceding sentence. Notwithstanding anything to the contrary set forth in this
Agreement and without limitation to anything in Section 10.6 below,
Purchaser is prohibited from making any claims against Seller after the Closing
with respect to any breaches of Seller’s representations and warranties
contained in this Agreement that Purchaser has actual knowledge of prior to the
Closing. Notwithstanding clause (i) above in this Section 7.3, in the
event the representation and warranty in Section 10.1.5 below (concerning
condemnation) is true on the Effective Date and thereafter becomes untrue and
Purchaser does not have the right to terminate this Agreement under
Section 5 above, then Purchaser shall not have the right to terminate the
Agreement under this Section 7.3 (however, Purchaser shall have the rights
provided under Section 5 above). For purposes of this Section 7.3,
the term “in any material respect” shall mean
that any inaccuracy in such matter (together with all other breaches of
representations and warranties set forth in this Agreement, if any) will have
an adverse monetary effect on the Property which exceeds Two Hundred Fifty
Thousand and 00/100 Dollars ($250,000). For purposes of this Section 7.3,
Purchaser’s “knowledge”, “actual knowledge”, or words of similar import, shall
be deemed to be the collective knowledge of Mark T. Alfieri, Robert T. Poynter,
and Jon Bader, each of whom shall be deemed to have actual knowledge of the
employees and consultants of Purchaser and/or its affiliates that have
conducted any due diligence investigations on behalf of Purchaser and/or its
affiliates with respect to the Property, and all matters disclosed by the
Disclosures (hereinafter defined), and any other documentation of Seller which
was delivered to, or made available for review by, Purchaser. Notwithstanding
anything to the contrary set forth in this Agreement, none of Mark T. Alfieri,
Robert T. Poynter or Jon Bader shall have any personal liability or liability
whatsoever with respect to any matters set forth in this Agreement or the
transactions contemplated hereby.

 

7.4                                 Post-Closing Remedies. From and
after the Closing, Seller and Purchaser shall, subject to the terms and
conditions of this Agreement including, without limitation, the terms of
Section 12.1 below, have such rights and remedies as are available at law
or in equity, except that neither Seller nor Purchaser shall be entitled to
recover from the other consequential or special damages.

 

8.                                       CONDITIONS
PRECEDENT.

 

8.1                                 Condition Precedent -
Purchaser.

 

8.1.1 Purchaser shall have
until 5:00 p.m. (Chicago time) on the twenty-fifth (25th) day after the
Effective Date within which to inspect the Property (the “Review
Period”). If Purchaser determines that the Property is unsuitable
for its purposes and so notifies Seller in writing within the Review Period,
the Earnest Money (specifically excluding the Option Fee, which shall

 

12

 

be paid to Seller) shall be returned to Purchaser,
at which time this Agreement shall be null and void and neither party shall
have any further rights or obligations under this Agreement except those which
expressly survive termination. Purchaser’s failure to terminate this Agreement
within the Review Period shall be conclusively deemed a waiver by Purchaser of
the condition contained in this Section 8.1.1.

 

8.1.2 Purchaser’s right of
inspection pursuant to this Section 8 shall be subject to the rights of
tenants under the Leases and other occupants and users of the Property. Before
entering upon the Property, Purchaser shall furnish to Seller a certificate of
insurance evidencing: (a) commercial general liability insurance coverage
of not less than One Million Dollars ($1,000,000.00) per occurrence and Two
Million Dollars ($2,000,000.00) in the aggregate, (b) commercial
automobile insurance coverage of not less than One Million Dollars
($1,000,000.00) per occurrence which shall cover liability arising in
connection with any automobile at the Property (including owned, hired and
non-owned automobiles), and (iii) workers’ compensation insurance as
required by statute in the state where the Property is located and employer’s
liability insurance of not less than One Million Dollars ($1,000,000.00) per
accident. All of the foregoing amounts may be met in combination with an
umbrella or excess liability policy. With respect to the coverages required by
subsections (a) and (b) immediately preceding, Seller, Stark and Roth, Inc.,
and their agents and affiliates shall be named as additional insureds. Such
insurance coverage shall (i) be issued by an insurance company licensed to
do business in the state where the Property is located having a rating of at
least “AX” by A.M. Best Company, (ii) be primary and any insurance
maintained by Seller shall be excess and noncontributory, (iii) include
contractual liability coverage with respect to Purchaser’s indemnity
obligations set forth in this Agreement (it being understood, however, that the
availability of such insurance shall not serve to limit or define the scope of
Purchaser’s indemnity obligations under this Agreement in any manner
whatsoever), and (iv) not contain any exclusions for work performed at or
on residential properties, or for “insured versus insured” claims as respects
any potential claim by Seller against Purchaser. The insurance certificate
required herein shall also provide that the coverage may not be cancelled,
non-renewed or reduced without at least thirty (30) days’ prior written notice
to Seller. No inspection shall be undertaken on less than twenty-four (24)
hours prior written notice to Seller. Seller shall have the right to be present
at any or all inspections. Without limiting Purchaser’s right to seek a Zoning 3.1
Endorsement to the Owner’s Policy, neither Purchaser nor its agents or
representatives shall contact any tenants or any governmental or
quasi-governmental entities concerning the Property or Seller without the prior
written consent of Seller and without Seller being entitled to participate in
such discussions. No inspection shall involve the taking of samples or other
physically invasive procedures without the prior written consent of Seller in
its reasonable discretion. Notwithstanding anything to the contrary contained
in this Agreement, Purchaser shall indemnify, defend (with counsel

 

13

 

acceptable to Seller) and hold Seller, Stark and
Roth, Inc. and each of their respective past, present and future affiliates
(collectively, “Seller’s Affiliates”), harmless
from and against any and all losses, claims, damages and liabilities
(including, without limitation, attorneys’ fees and costs incurred in
connection therewith) arising out of or resulting from Purchaser’s exercise of
its rights under Section 8 of this Agreement; provided, however, Purchaser
shall not be liable for, and Purchaser shall not indemnify Seller or Seller’s
Affiliates with respect to, any pre-existing condition, fact, matter, item or
substance discovered, uncovered, located, or identified as a result of the
entry or activities of Purchaser which are expressly permitted hereunder,
except to the extent that such condition, fact, matter, item or substance is
exacerbated by Purchaser or its consultant’s inspection. Purchaser shall
restore to its original condition the Property or any portion thereof or any of
Personal Property that is damaged or modified by Purchaser’s inspections or
testing. The indemnification obligation of Purchaser in this Section 8.1.2
shall survive termination of this Agreement.

 

8.1.3 At Closing, all
management contracts relating to the Property shall be terminated.

 

9.                                  SECTION 1031
EXCHANGE. Seller may structure the disposition of the
Property as a like-kind exchange under Internal Revenue Code Section 1031
at Seller’s sole cost and expense. Purchaser shall reasonably cooperate
therein, provided that Purchaser shall incur no material costs, expenses or
liabilities in connection with Seller’s exchange, and the Closing shall not be
delayed as a result thereof. Seller shall indemnify, defend and hold Purchaser
harmless therefrom and Purchaser shall not be required to take title to or
contract for purchase of any other property. If Seller uses a qualified
intermediary to effectuate the exchange, any assignment of the rights or
obligations of Seller hereunder shall not relieve, release or absolve Seller of
its obligations to Purchaser.

 

10.                            REPRESENTATIONS AND
WARRANTIES.

 

10.1                             Seller’s Representations
and Warranties. Seller represents and warrants to Purchaser as of the
Effective Date as follows:

 

10.1.1 Seller is a limited
liability company, duly organized, validly existing and in good standing under
the laws of the State of Wisconsin.

 

10.1.2 Seller has full
power, right and authority to enter into and perform its obligations under this
Agreement. The execution, delivery and performance of this Agreement by Seller
have been duly and properly authorized by proper company action in accordance
with applicable law and with the Articles of Organization of Seller.

 

10.1.3 To Seller’s
knowledge, Exhibit C attached hereto lists all of the Service
Contracts entered into by Seller that affect the Property and the service
provider under each Service Contract. Notwithstanding anything

 

14

 

in this Agreement to the contrary, Seller does not
covenant or represent that any particular Service Contract will be assignable
to Purchaser at Closing, will be in force or effect as of the Closing, or that
the parties to the Service Contracts will not be in default under their
respective Service Contracts, and the existence of any default by any party
under any Service Contract shall not affect the obligations of Purchaser
hereunder.

 

10.1.4 To Seller’s knowledge,
Exhibit L attached hereto describes, in all material respects, the
following information concerning the Leases affecting the Property as of the
date thereon (“Rent Roll”): (a) unit number,
(b) name of tenant, (c) rental rate, (d) move in date,
(e) expiration date, and (f) amount of security deposit, and, to
Seller’s knowledge, the Rent Roll is true, correct and complete in all material
respects. Seller makes no representation with respect to any information
provided in Exhibit L that is not described in the preceding
sentence. Notwithstanding anything in this Agreement to the contrary, Seller
does not covenant or represent that tenants under Leases will not be in default
under their respective Leases, and the existence of any default by any tenant
under its Lease shall not affect the obligations of Purchaser hereunder.

 

10.1.5 Seller has not
received from any governmental authority having the power of eminent domain any
written notice of any condemnation of the Property or any part thereof.

 

10.1.6 To Seller’s
knowledge, except as set forth on Exhibit N attached hereto, Seller
does not have any knowledge of any material defects affecting the Property (for
the purposes of this Section 10.1.6, material defects shall mean a defect
that, in the aggregate, adversely affect the value of the Property by more than
$250,000.00).

 

10.1.7 Except as set forth
on Exhibit O attached hereto, Seller has received no written notice
of any pending litigation initiated against Seller or the Property which would
materially affect the Property after Closing.

 

10.1.8 To Seller’s
knowledge, except as set forth on Exhibit P attached hereto, Seller
has not received from any governmental authority written notice of any material
violation of any building, fire or health code or any other statute applicable
to the Property which will not be cured prior to Closing.

 

10.1.9 Seller has not
received any currently effective written notice that any Hazardous Substances
(as hereinafter defined) exist at the Property in violation of Applicable Environmental
Laws. As used in this Agreement, the term “Applicable Environmental Laws” means
the following laws as amended from time to time: (A) the Resource
Conservation and Recovery Act of 1976, 42 USC §1801, et. seq.; or (B) the
Comprehensive

 

15

 

Environmental Response Compensation and Liability
Act of 1980, 42 USC §9601 et. seq.

 

10.2                             Seller’s Knowledge.
When used in this Agreement, the term “to Seller’s knowledge”, “Seller does not
have any knowledge of “ or words of similar import shall mean and be limited to
the actual (and not imputed, implied or constructive) current knowledge,
without inquiry, of Anthony Marino, Senior Corporate Counsel of Stark
Investments. Notwithstanding anything to the contrary set forth in this
Agreement, Anthony Marino shall not have any personal liability or liability
whatsoever 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.

 

10.3                             Survival of Seller’s
Representations and Warranties. Subject to the provisions of
Section 7.3, Section 10.6 and any actions or conduct of Seller
permitted under this Agreement, the representations and warranties of Seller
set forth in Section 10.1 shall be updated by Seller at Closing in
accordance with Section 4.2.9 above, and shall survive the Closing and the
delivery of the Deed for a period of six (6) months following the Closing
Date (provided, however, that Seller’s representations and warranties set forth
in Sections 10.1.1 and 10.1.2 above shall survive Closing and the delivery of
the Deed for the longest period permitted by law). Except with respect to
Seller’s representations and warranties set forth in Section 10.1.1 and 10.1.2
above, notice of any claim as to a breach of any representation or warranty
must be made to Seller prior to the expiration of such six (6) month
period or it shall be deemed a waiver of Purchaser’s right to assert such
claim.

 

10.4                             Purchaser’s Representations
and Warranties. Purchaser represents and warrants to Seller as of the
Effective Date as follows:

 

10.4.1 Purchaser is a
limited partnership, duly organized, validly existing and in good standing
under the laws of the State of Delaware.

 

10.4.2 Purchaser has full
power, right and authority to enter into, and as of the Closing Date will have
the full power, right and authority to perform its obligations under, this
Agreement. The execution, delivery and performance of this Agreement by
Purchaser have been duly and properly authorized by proper corporate action in
accordance with applicable law and with the organizational documents of
Purchaser.

 

10.4.3 Neither Purchaser
nor, to Purchaser’s knowledge, any other person or party that directly or
indirectly owns a five percent (5%) or greater ownership interest in Purchaser
is (a) identified on the OFAC List (as hereinafter defined) or (b) a
person with whom a citizen of the United States is prohibited to engage in
transactions by any trade embargo, economic sanction, or other prohibition of
United States law, rule, regulation or Executive Order of the President of the
United States. The term “OFAC List”
shall mean the list of specially designated nationals and blocked persons
subject to financial sanctions that is maintained by the U.S. Treasury
Department, Office of Foreign Assets Control and any other similar list
maintained by the U.S.

 

16

 

Treasury Department, Office of Foreign Assets
Control pursuant to any law, rule, regulation or Executive Order of the
President of the United States, including, without limitation, trade embargo,
economic sanctions, or other prohibitions imposed by Executive Order of the
President of the United States.

 

10.4.4 Purchaser is not a
party in interest under Section 3(14) of the Employee Retirement Income
Security Act of 1974 (“ERISA”), or a
disqualified person under Section 4975(e)(2) of the Internal Revenue Code
of 1986, as amended (the “Code”).

 

10.4.5 Purchaser’s acquisition
of the Property will not constitute or result in a prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code.

 

10.4.6 Purchaser is not an
entity whose assets are deemed to be “plan assets” under ERISA, and the funds
being used by Purchaser to acquire the Property do not constitute in full or in
part “plan assets” subject to ERISA (as defined in 29 C.F.R. § 2510.3-101).

 

10.5                             Survival of Purchaser’s
Representations and Warranties. The representations and warranties of
Purchaser set forth in Section 10.4 shall be deemed to be remade by
Purchaser as of Closing and shall survive the Closing and delivery of the Deed
for the longest period permitted by law.

 

10.6                             Modification of
Representations, Warranties and/or Certifications. Prior to Closing, as and
to the extent that(i) Purchaser obtains actual knowledge of facts, or
(ii) Purchaser receives (or Seller receives and delivers to Purchaser) any
Disclosures (as hereinafter defined) with respect to matters addressed in
Section 10.1, which contain information or facts that are inconsistent
with or different from any or all of the representations, warranties or
certifications made in Section 10.1 above, and the Closing occurs, then
such inconsistent portion of such representation, warranty or certification
made in this Section 10 shall be deemed to be modified and superseded by
such fact or Disclosure (and, in such event, Seller shall no longer have any
liability hereunder with respect to that portion of the representation,
warranty or certification superseded herein, as applicable).

 

11.                                 AS-IS.

 

11.1                          AS-IS
CONDITION.  SUBJECT  TO SELLER’S REPRESENTATIONS AND
WARRANTIES EXPRESSLY SET FORTH IN SECTION 10.1 ABOVE AND IN ANY DOCUMENTS
DELIVERED PURSUANT TO THE TERMS HEREOF BY SELLER TO PURCHASER AT CLOSING, AND
ACKNOWLEDGING THE PRIOR USE OF THE PROPERTY AND PURCHASER’S OPPORTUNITY TO
INSPECT THE PROPERTY, PURCHASER AGREES TO PURCHASE THE PROPERTY “AS IS”, “WHERE
IS”, WITH ALL FAULTS AND CONDITIONS THEREON. ANY WRITTEN OR ORAL INFORMATION,
REPORTS, STATEMENTS, DOCUMENTS OR RECORDS CONCERNING THE PROPERTY
(“DISCLOSURES”) PROVIDED OR MADE AVAILABLE TO PURCHASER, ITS AGENTS OR

 

17

 

CONSTITUENTS BY SELLER, SELLER’S AGENTS, EMPLOYEES OR THIRD PARTIES
REPRESENTING OR PURPORTING TO REPRESENT SELLER, SHALL NOT BE REPRESENTATIONS OR
WARRANTIES, UNLESS SPECIFICALLY SET FORTH IN SECTION 10.1 OF THIS
AGREEMENT. IN PURCHASING THE PROPERTY OR TAKING OTHER ACTION HEREUNDER,
PURCHASER HAS NOT AND SHALL NOT RELY ON ANY SUCH DISCLOSURES, BUT RATHER,
PURCHASER SHALL RELY ONLY ON PURCHASER’S OWN INSPECTION OF THE PROPERTY.
PURCHASER ACKNOWLEDGES THAT THE PURCHASE PRICE REFLECTS AND TAKES INTO ACCOUNT
THAT THE PROPERTY IS BEING SOLD “AS IS”.

 

11.2                             NO
ADDITIONAL REPRESENTATIONS.  PURCHASER ACKNOWLEDGES AND AGREES
THAT EXCEPT AS EXPRESSLY SET FORTH IN SECTION 10.1 OF THIS AGREEMENT AND
IN ANY DOCUMENTS DELIVERED PURSUANT TO THE TERMS HEREOF BY SELLER TO PURCHASER
AT CLOSING, SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY
REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF
ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN,
PAST, PRESENT OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO THE PROPERTY
INCLUDING, WITHOUT LIMITATION, (A) THE NATURE, QUALITY OR PHYSICAL
CONDITION OF THE PROPERTY, (B) THE CONSTRUCTION OF THE IMPROVEMENTS AND
WHETHER THERE EXISTS ANY CONSTRUCTION DEFECTS THEREIN, (C) THE WATER, SOIL
AND GEOLOGY OF THE PROPERTY, (D) THE INCOME TO BE DERIVED FROM THE
PROPERTY, (E) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES
AND USES WHICH PURCHASER MAY CONDUCT THEREON, (F) THE COMPLIANCE OF
OR BY THE PROPERTY OR THE OPERATION THEREOF WITH ANY LAWS, RULES, ORDINANCES OR
REGULATIONS OF ANY GOVERNMENTAL AUTHORITY OR BODY HAVING JURISDICTION
THEREOVER, (G) THE HABITABILITY OR FITNESS OF THE PROPERTY FOR A
PARTICULAR PURPOSE, (H) THE MARKETABILITY OF THE PROPERTY OR THE ABILITY
TO LEASE OR SELL UNITS THEREIN, (I) THE STATUS OR CONDITION OF ENTITLEMENTS
PERTAINING TO THE PROPERTY, AND (J) ANY MATTER REGARDING TERMITES OR
WASTES, AS DEFINED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT
40 C.F.R., OR ANY HAZARDOUS MATERIALS, AS HEREINAFTER DEFINED. PURCHASER
FURTHER ACKNOWLEDGES AND AGREES THAT SELLER, UNLESS OTHERWISE REQUIRED BY
LAW, IS UNDER NO DUTY TO MAKE ANY AFFIRMATIVE DISCLOSURES REGARDING ANY
MATTER WHICH MAY BE KNOWN TO SELLER.

 

11.3                             RELEASE.
PURCHASER REPRESENTS TO SELLER THAT PURCHASER HAS CONDUCTED, OR WILL CONDUCT
PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, AS PURCHASER DEEMS
NECESSARY OR DESIRABLE TO SATISFY ITSELF AS TO ANY MATTER RELATING TO THE
PROPERTY AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY

 

18

 

INFORMATION PROVIDED BY OR ON BEHALF OF SELLER, SELLER’S AGENTS,
EMPLOYEES OR THIRD PARTIES REPRESENTING OR PURPORTING TO REPRESENT SELLER, WITH
RESPECT THERETO. UPON CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE
MATTERS REGARDING THE PROPERTY MAY NOT HAVE BEEN REVEALED BY PURCHASER’S
INVESTIGATIONS, AND PURCHASER, UPON CLOSING, SHALL BE DEEMED, ON BEHALF OF
ITSELF AND ON BEHALF OF ITS TRANSFEREES AND THEIR RESPECTIVE SUCCESSORS AND
ASSIGNS, TO WAIVE, RELINQUISH, RELEASE AND FOREVER DISCHARGE SELLER AND
SELLER’S AFFILIATES FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF
ACTION, LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’
FEES) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, BY REASON OF
OR ARISING OUT OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, BY REASON
OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECT OR OTHER PHYSICAL
CONDITION (INCLUDING, WITHOUT LIMITATION, FUNGI, MOLD OR MILDEW) WHETHER
PURSUANT TO STATUTES IN EFFECT IN THE STATE OF ILLINOIS OR ANY OTHER FEDERAL,
STATE, OR LOCAL ENVIRONMENTAL OR HEALTH AND SAFETY LAW OR REGULATION, THE
EXISTENCE OF ANY HAZARDOUS MATERIAL WHATSOEVER, ON, AT, TO, IN, ABOVE,
ABOUT, UNDER, FROM OR IN THE VICINITY OF THE PROPERTY AND ANY AND ALL OTHER
ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS WHATSOEVER REGARDING THE
PROPERTY. THIS RELEASE INCLUDES CLAIMS OF WHICH PURCHASER IS PRESENTLY UNAWARE
AND OF WHICH PURCHASER DOES NOT PRESENTLY SUSPECT TO EXIST WHICH, IF KNOWN
BY PURCHASER, WOULD MATERIALLY AFFECT PURCHASER’S RELEASE OF SELLER.

 

IN THIS REGARD AND TO THE
EXTENT PERMITTED BY LAW, PURCHASER HEREBY AGREES, REPRESENTS AND WARRANTS THAT
PURCHASER REALIZES AND ACKNOWLEDGES THAT FACTUAL MATTERS NOW UNKNOWN TO
PURCHASER MAY HAVE GIVEN OR MAY HEREAFTER GIVE RISE TO CAUSES OF
ACTION, CLAIMS, DEMANDS, DEBTS, CONTROVERSIES, DAMAGES, COSTS, LOSSES AND
EXPENSES WHICH ARE PRESENTLY UNKNOWN, UNANTICIPATED AND UNSUSPECTED, AND
PURCHASER FURTHER AGREES, REPRESENTS AND WARRANTS THAT THE WAIVERS AND RELEASES
CONTAINED HEREIN HAVE BEEN NEGOTIATED AND AGREED UPON BY PURCHASER IN LIGHT OF
THAT REALIZATION AND THAT PURCHASER NEVERTHELESS HEREBY INTENDS TO RELEASE,
DISCHARGE AND ACQUIT SELLER AND SELLER’S AFFILIATES FROM ANY SUCH UNKNOWN
CAUSES OF ACTION, CLAIMS, DEMANDS, DEBTS, CONTROVERSIES, DAMAGES, COSTS, LOSSES
AND EXPENSES.

 

NOTWITHSTANDING THE
FOREGOING PROVISIONS OF THIS SECTION 11.3, PURCHASER’S RELEASE OF SELLER
AS SET FORTH IN THIS SECTION 11.3 SHALL NOT PERTAIN TO ANY CLAIM OR CAUSE
OF ACTION BY PURCHASER AGAINST SELLER FOR A BREACH BY SELLER OF A
REPRESENTATION OR WARRANTY EXPRESSLY SET FORTH IN SECTION 10.1 OF THIS
AGREEMENT

 

19

 

OR IN ANY DOCUMENTS DELIVERED
PURSUANT TO THE TERMS HEREOF BY SELLER TO PURCHASER AT CLOSING.

 

“Hazardous Materials” or “Hazardous Substances” - shall mean
(i) hazardous wastes, hazardous materials, hazardous substances, hazardous
constituents, toxic substances or related materials, whether solids, liquids or
gases, including, but not limited to, substances defined as “hazardous wastes,”
“hazardous materials,” “hazardous substances,” “toxic substances,”
“pollutants,” “contaminants,” “radioactive materials”, “toxic pollutants”, or
other similar designations in, or otherwise subject to regulation under, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980,
as amended (“CERCLA”), 42 U.S.C. § 9601 et
seq.;  the Toxic Substance Control
Act (“TSCA”), 15 U.S.C. § 2601 et seq.; the Hazardous Materials
Transportation Act, 49 U.S.C. §5101 et seq.; the Resource Conservation
and Recovery Act (“RCRA”), 42
U.S.C. § 9601, et seq.; the Clean Water Act (“CWA”),
33 U.S.C. § 1251 et seq.; the Safe Drinking Water Act, 42 U.S.C. § 300f et
seq.; the Clean Air Act (“CAA”), 42
U.S.C. § 7401 et seq.; and in any permits, licenses, approvals, plans,
rules, regulations or ordinances adopted, or other criteria and guidelines
promulgated pursuant to the preceding laws or other similar federal, state or
local laws, regulations, rules or ordinance now or hereafter in effect
relating to environmental matters; and (ii) any other substances,
constituents or wastes subject to any applicable federal, state or local law,
regulation or ordinance, including any environmental law, now or hereafter in
effect, including but not limited to (A) petroleum, (B) refined
petroleum products, (C) waste oil, (D) waste aviation
or motor vehicle fuel and their byproducts, (E) asbestos, (F) lead
in water, paint or elsewhere, (G) radon, (H) Polychlorinated
Biphenyls (PCB’s), (I) ureaformaldehyde, (J) volatile
organic compounds (VOC), (K) total petroleum hydrocarbons (TPH), (L) benzine
derivative (BTEX), and (M) petroleum byproducts.

 

11.4                             Condominium Conversions.
Purchaser agrees to indemnify, defend and hold Seller, Seller’s Affiliates, and
each of their respective members, partners, officers, directors, trustees,
parents, subsidiaries, shareholders, managers, beneficiaries, employees and
agents, harmless from and against any and all demands, claims, causes of
action, legal or administrative proceedings, losses, liabilities, damages,
penalties, fines, liens, judgments, costs or expenses whatsoever and of any
kind or nature (including, without limitation, court costs and reasonable
attorneys’ fees arising out of any of the above), whether in tort, contract or
otherwise, and whether arising under statutes in effect in the State of
Illinois or otherwise, arising out of or directly relating to claims made or
brought by or on behalf of any party or parties who acquire or contract to acquire
any ownership interest in the Property following the filing or recording of any
document providing for the conversion of the Property to a form of condominium
ownership under any state or local law (including, without limitation,
condominium and homeowner associations), and their successors and assigns, in
connection with or related to, the physical condition of the Property prior to,
at and subsequent to Closing, including, without limitation, with respect to
deficiencies (including, without limitation, any latent or patent defect) in
the design, specification, surveying, planning, development, supervision or
construction of an improvement to the Property, or any injury arising out of
any such deficiency, all structural and seismic elements of the Property, all
mechanical, electrical, plumbing, sewage, heating, ventilating, air
conditioning and other systems, the existence of asbestos, mold, mildew or
fungi and the environmental condition of the Property. The provisions of this
Section 11 shall survive the Closing for the longest period permitted by
law. Purchaser and Seller acknowledge and agree that the disclaimers,
indemnifications and other agreements set forth herein are an integral

 

20

 

part of this Agreement and that Seller would not have agreed to sell
the Property to Purchaser for the Purchase Price and Purchaser would not have
agreed to enter into the transaction contemplated by this Agreement without
such disclaimers, indemnifications and other agreements set forth above.

 

12.                            LIMITATION OF LIABILITY.

 

12.1                             Limitation of Liability.
Notwithstanding anything to the contrary contained herein, if the Closing shall
have occurred (and Purchaser shall not have waived, relinquished or released
any applicable rights in further limitation), the aggregate liability of Seller
arising pursuant to or in connection with the representations, warranties,
indemnifications, covenants or other obligations (whether express or implied)
of Seller under this Agreement (or any document executed or delivered in
connection herewith) shall not exceed Seven Hundred Fifty Thousand and
No/100ths Dollars ($750,000.00). Seller shall not be liable to Purchaser in
respect of the representations, warranties, indemnifications, covenants or
other obligations (whether express or implied) of Seller under this Agreement
(or any document executed or delivered in connection herewith) unless and until
the sum of such obligations exceeds Twenty Five Thousand and no/100ths Dollars
($25,000.00) in the aggregate. The provisions of this Section 12.1 shall
survive the closing or any termination of this Agreement.

 

12.2                             No Personal Liability of
Seller’s Members and Employees. No constituent member of Seller or any of
Seller’s or such member’s agents, partners, members, advisors, trustees,
directors, officers, employees, beneficiaries, shareholders, participants, or
agents of (including, but not limited to, Stark and Roth, Inc.) shall have
any personal liability, directly or indirectly, under or in connection with
this Agreement or any agreement made or entered into under or pursuant to the
provisions of this Agreement, or any amendment or amendments to any of the
foregoing made at any time or times, heretofore or hereafter, and Purchaser and
its successors and assigns and, without limitation, all other persons and
entities, shall look solely to Seller’s assets for the payment of any claim or
for any performance, and Purchaser, on behalf of itself and its successors and
assigns, hereby waives any and all such personal liability. Notwithstanding
anything to the contrary contained in this Agreement, neither the negative
capital account of any constituent member in Seller, nor any obligation of any
constituent member in Seller, to restore a negative capital account or to
contribute capital to Seller, shall at any time be deemed to be the property or
an asset of Seller (and neither Purchaser nor any of its successors or assigns
shall have any right to collect, enforce or proceed against or with respect to
any such negative capital account of member’s obligations to restore or
contribute). The provisions of this Section 12.2 shall survive the Closing
or any termination of this Agreement.

 

13.                            OPERATION OF THE PROPERTY. From and
after the Effective Date until the Closing Date or earlier termination of this
Agreement:

 

13.1                             Ordinary Course of
Business. Seller shall operate the Property in its ordinary course of
business (provided, that such obligation shall not include incurring any
capital expenditures except to the extent that the Property is unable to
operate reasonably as a Class A apartment building without such
expenditure) and shall not sell, further pledge, or otherwise transfer or
dispose of all or any part of any Property (except for such items of Personal
Property

 

21

 

as become obsolete or are disposed of in the ordinary course), subject
to the provisions of Section 5 above.

 

13.2                             Service Contracts.
Seller shall not enter into any new written service contract with respect to
the Property that will not be cancelable by Purchaser without penalty upon no
greater than thirty (30) days notice, without the prior written consent of
Purchaser.

 

13.3                             Property Insurance.
Seller shall maintain in full force and effect insurance coverages
substantially similar to Seller’s existing property insurance on the Property.

 

13.4                             Condition of Vacant
Units. At Closing, any units at the Property that are vacated at least five
(5) business days prior to Closing shall be put in rent ready condition by
Seller in accordance with Seller’s customary management practices at the
Property or Purchaser shall receive a credit at Closing in an amount necessary
to put any such unit in rent ready condition; provided, however, the amount of
any such credit shall not exceed the sum of $500.00 per unit.

 

13.5                             New Leases. Seller
shall keep, observe, and perform its obligations as landlord under the Leases,
and not enter into, or alter, amend or otherwise modify or supplement any
existing Lease to provide for a term in excess of one (1) year, without
the prior written consent of Purchaser. Seller shall not enter into any new
commercial or retail Leases or terminations, modifications, or extensions of
such Leases without first obtaining Purchaser’s prior written consent, which
shall not be unreasonably withheld. Purchaser’s consent shall be deemed to have
been tendered by Purchaser if Purchaser does not object within five
(5) business days after Purchaser’s receipt of Seller’s written inquiry.

 

13.6                             Pre-Closing Operations.
For a period of at least 72 hours before the Closing, Seller shall discontinue
data entry operations in the on-site computer system for the Property,
including making deposits of rental income. Seller acknowledges that such
discontinuance is intended to afford Seller and Purchaser an opportunity to
coordinate the transition of the Property in anticipation of Closing and to
complete work on prorations as set forth in this Agreement. Seller shall, as
soon as practicable after discontinuing such data entry (with Seller
endeavoring to do the same within two hours of such discontinuance), forward to
Purchaser or its designee final reports to facilitate transition planning and
compilation of prorations.

 

13.7                             Website. Seller
shall maintain the Website though the Closing. Promptly following Closing,
Seller and Purchaser shall work together in good faith, together with the
Website manager, to remove all references to Seller as owner and to the
property management company.

 

14.                                   MISCELLANEOUS.

 

14.1                             Indemnification Claims.  The
indemnifications contained in this Agreement shall be subject to the following
provisions: the indemnitee shall notify indemnitor of any such claim against
indemnitee within thirty (30) days after it has written notice of such claim,
but failure to notify indemnitor shall in no case prejudice the rights of
indemnitee under this Agreement unless indemnitor shall be prejudiced by such
failure and then only to the extent

 

22

 

of such prejudice. Should indemnitor fail to discharge or undertake to
defend indemnitee against such liability within fifteen (15) business days
after the indemnitee gives the indemnitor written notice of the same, then
indemnitee may settle such liability, and indemnitor’s liability to indemnitee
shall be conclusively established by such settlement, the amount of such
liability to include both the settlement consideration and the reasonable costs
and expenses, including attorneys’ fees, incurred by indemnitee in effecting
such settlement. The obligations set forth in this Section 14.1 shall
survive the Closing or earlier termination of this Agreement.

 

14.2                             Entire Agreement.
All understandings and agreements heretofore had between Seller and Purchaser
with respect to the Property are merged in this Agreement, which alone fully
and completely expresses the agreement of the parties.

 

14.3                             Assignment. Except
for a one (1) time right to assign this Agreement, to a “Permitted
Assignee” (as hereinafter defined), neither this Agreement nor any interest
hereunder shall be assigned or transferred by Purchaser. For purposes of this
Agreement, the term “Permitted Assignee”
shall mean a legal entity controlled by Behringer Harvard Multifamily OP I LP.
To be effective, an assignment to a Permitted Assignee shall (i) only be
permitted following the expiration of the Review Period; (ii) be fully
executed by the assignor and the Permitted Assignee thereunder and delivered to
Seller as soon as practicable to afford Seller sufficient time before the
Closing Date to prepare the applicable closing documents reflecting the name
and signature block of the Permitted Assignee, and (iii) contain a
provision whereby the Permitted Assignee assumes all of the obligations of Purchaser
under this Agreement whether occurring before, as of or after the effective
date of such assignment. Upon both the assignment of this Agreement and the
Permitted Assignee’s delivery to Escrowee of the full amount of Closing funds
required to be delivered by Purchaser (or the Permitted Assignee) hereunder,
the original Purchaser will be released from all liabilities and obligations
under this Agreement as and to the extent that the Permitted Assignee has
assumed the same. Subject to the foregoing, this Agreement shall inure to the
benefit of and shall be binding upon Seller and Purchaser and their respective
successors and assigns.

 

14.4                             No Modification.
This Agreement shall not be modified or amended except in a written document
signed by Seller and Purchaser.

 

14.5                             Time of the Essence.
Time is of the essence of this Agreement.

 

14.6                             Governing Law. This
Agreement shall be governed and interpreted in accordance with the laws of the
State of Illinois.

 

14.7                           Notice. All notices,
requests, demands or other communications required or permitted under this
Agreement shall be in writing and delivered personally, by certified mail,
return receipt requested, postage prepaid, by overnight courier (such as
Federal Express), by facsimile transmission with a copy to follow by certified
mail, return receipt requested, postage paid or by overnight courier, or by
electronic mail (provided that receipt is confirmed by a return electronic mail
message sent by the recipient or an assistant thereof); provided, however,
notices sent pursuant to Section 7.1 or 7.2 may not be transmitted by
electronic mail. Notices shall be addressed as follows:

 

23

 

If to Seller:

 

c/o Stark Investments

3600 South Lake Drive

St. Francis, Wisconsin 53235

Telephone: (414) 294-7786

Facsimile: (414) 294-7986

Attention: Linda Gorens-Levey / Anthony Marino

	
  Email:

  	
   lgorens@starkinvestments.com

  
	
   

  	
   amarino@starkinvestmetns.com

  

 

With copies to:

 

Quarles & Brady LLP

300 N. LaSalle Street, Suite 4000

Chicago, Illinois 60654

Telephone: (312) 715-5061

Facsimile: (312) 632-1733

Attention: Thomas A. McCarthy

Email: thomas.mccarthy@quarles.com

 

If to Purchaser:

 

Behringer Harvard Multifamily OP I LP 

15601 Dallas Parkway, Suite 600

Addison, Texas 75001

Telephone: 214-655-1600

Facsimile: 214-655-1610

Attention: Robert T. Poynter

Email: bpoynter@behringerharvard.com

 

With a copy to:

 

Miller, Egan, Molter & Nelson LLP

4514 Cole Avenue, Suite 1250

Dallas, Texas 75205

Telephone: 214-628-9502

Facsimile: 214-628-9505

Attention: Walter D. Miller

Email: walt.miller@MillerEgan.com

 

All notices given in accordance with the terms hereof shall be deemed
received on the next business day if sent by overnight courier, on the same day
if sent by facsimile or electronic mail before 5:00 p.m. (Chicago time) on
a business day, on the third (3rd) business day following deposit with the United
States Mail as a registered or certified matter with postage prepaid, or when
delivered personally or otherwise received or refused. Either party hereto may
change the

 

24

 

address for receiving notices, requests, demands or other communication
by notice sent in accordance with the terms of this Section 14.7.

 

14.8         Waiver
of Trial by Jury. IN ANY LAWSUIT OR OTHER PROCEEDING INITIATED BY PURCHASER
UNDER OR WITH RESPECT TO THIS AGREEMENT, PURCHASER WAIVES ANY RIGHT IT
MAY HAVE TO TRIAL BY JURY. IN ADDITION, PURCHASER WAIVES ANY RIGHT TO SEEK
RESCISSION OF THE TRANSACTION PROVIDED FOR IN THE AGREEMENT.

 

14.9         Confidentiality.
Without the prior written consent of Seller, Purchaser shall not issue a press
release or other media publicity of any kind whatsoever with respect to Seller
or this Agreement or disclose to any third party the existence of this
Agreement or any term or condition of this Agreement (including, without
limitation, the Purchase Price) or the results of any inspections or studies
undertaken in connection herewith. Notwithstanding the foregoing, after the
Closing, each of Seller and Purchaser shall have the right to issue a press
release solely announcing the purchase and sale of the Property and the
resulting ownership and control of the Property so long as the release does
not, except to the extent required by applicable law or as may otherwise be a
Permitted Disclosure (as hereafter defined), disclose the economic terms
thereof (a “Permitted Release”). Any press
release or media publicity other than a Permitted Release issued by either
Seller or Purchaser shall be subject to the review and approval of the other
party hereto (which approval shall not be unreasonably withheld, conditioned or
delayed), except to the extent required by applicable law, in which event the
review and approval of the other party hereto shall not be required. Purchaser
agrees to keep confidential and not to use, other than in connection with its
determination whether to proceed with the purchase of the Property in
accordance with Section 8 hereof, any of the documents, material or
information regarding the Property or Seller supplied to Purchaser by Seller or
by any third party at the request of Seller, including, without limitation any
environmental site assessment reports and information concerning any employee
of Seller or Seller’s Affiliates furnished to Purchaser, except Purchaser may
share such documents, material and information with Purchaser’s consultants
(the “Purchaser’s Consultants”) on a “need to
know” basis, unless Purchaser is compelled to disclose such documents, material
or information by law or by subpoena. Purchaser agrees to indemnify and hold
harmless Seller from and against any and all losses, damages, claims and
liabilities of any kind (including, without limitation, attorney’s fees)
arising out of a breach by Purchaser or Purchaser’s Consultants of the
provisions of this Section 14.9. In the event that the Closing does not
occur in accordance with the terms of this Agreement, Purchaser shall promptly
return to Seller all hard copies (and shall permanently delete and destroy all
electronic copies) of the documents, materials and information regarding the
Property supplied to Purchaser by Seller or at the request of Seller.
Notwithstanding any provision of this Section 14.9 to the contrary or in
any other agreement to which any party hereto is bound, Purchaser and
Purchaser’s Consultants may disclose any information or documentation that
(i) is readily ascertainable by the general public (other than as a result
of a disclosure by Purchaser in violation of this Section 14.9),
(ii) was known to Purchaser prior to the Purchaser’s delivery of the
letter intent dated May 24, 2010, (iii) is deemed advisable by
Purchaser or its counsel to disclose to its officers, directors, members,
managers, employees, agents, consultants, members of professional firms serving
it or potential lenders, investors, consultants and brokers and others who need
to know such information or review such documentation for the purpose of
assisting Purchaser in connection with the transaction contemplated by this
Agreement so long as such

 

25

 

persons are informed by Purchaser of the confidential nature of such
information and are directed in writing by Purchaser to treat such information
confidentially, (iv) is required to be disclosed by applicable law, or
(v) is deemed advisable by Purchaser or its counsel to be disclosed in
connection with financial reporting, securities disclosures or other legal, tax
or financial requirements or guidelines imposed by law and applicable to
Purchaser or any affiliate thereof, including any disclosures to the Securities
and Exchange Commission (each, a “Permitted Disclosure”).
The provisions of this Section 14.9 shall survive the Closing or the
earlier termination of this Agreement.

 

14.10         Assignment
of Interest in Reports and Studies. If for any reason Purchaser does not
consummate the Closing, then Purchaser shall, upon Seller’s request and payment
by Seller to Purchaser of the actual out-of-pocket costs paid by Purchaser in
procuring same, assign and transfer to Seller all of its right, title and
interest in and to, and deliver to Seller, any and all third-party studies,
reports, surveys and other information, data and/or documents relating to the
Property or any part thereof prepared by or at the request of Purchaser, its
employees and agents (excluding, however, any underwriting or property
valuation analyses prepared by Purchaser).

 

14.11         Access
to Property Files. Notwithstanding anything to the contrary set forth in
this Agreement, Purchaser hereby agrees that following Closing, Seller shall
have, upon reasonable prior notice to Purchaser, access to all files at the
Property that relate to a dispute or a set of facts that could lead to a
dispute (a “Dispute”) between Seller and a
third party including, without limitation, a tenant of the Property with
respect to Seller’s period of ownership thereof; provided, however, all rights,
defenses, causes of action and claims relating to a Dispute and arising from
matters and events following the Closing Date shall belong to Purchaser. In
addition, all files at the Property that relate to tenants who have vacated
their units at the Property (the “Former Tenant Lease Files”),
together with any and all rights, defenses, causes of action and claims
relating thereto, shall remain the property of Seller. Former Tenant Lease
Files may be removed from the Property by Seller on or before Closing. The
provisions of this Section 14.11 shall survive the Closing.

 

14.12         No
Memorandum of Agreement. This Agreement or any notice or memorandum hereof
shall not be recorded in any public record. A violation of this prohibition
shall constitute a material breach by Purchaser, entitling Seller to terminate
this Agreement. For the avoidance of doubt, this Section 14.12 does not
prohibit any Permitted Disclosure and the making of any Permitted Disclosure by
Purchaser shall not be a default under this Section 14.12, but only so
long as Purchaser does not record or file this Agreement or any memorandum or
notice of this Agreement with the office of the Cook County Recorder of Deeds
or any other land records.

 

14.13         No
Finance Contingency. Purchaser acknowledges and agrees that Purchaser’s
obligations under this Agreement are not in any manner contingent or
conditioned upon Purchaser obtaining financing in order to Purchase the
Property. It is expressly understood that if Purchaser is unable to close the
transaction contemplated by this Agreement as a result of Purchaser’s failure
to obtain financing, Purchaser shall be in default under this Agreement and
Seller shall have the remedy provided in Section 7.2 above. In no event
shall Seller be obligated to comply with any requirements of Purchaser’s lender
or otherwise incur any cost, expense or liability in connection with
Purchaser’s financing of the Property.

 

26

 

14.14         Counterpart
Signatures. This Agreement may be signed in any number of counterparts each
of which shall be deemed to be an original and all of which taken together
shall constitute one and the same instrument.

 

14.15         Designation
of Escrowee as Reporting Person. Seller and Purchaser hereby designate
Escrowee to act as and perform the duties and obligations of the “reporting
person” with respect to the transaction contemplated by this Agreement for
purposes of 26 C.F.R. Section 1.6045-4(e)(5) relating to the
requirements for information reporting on real estate transaction closed on or
after January 1, 1991.

 

14.16         Weekends
and Legal Holidays. Whenever the time for performance of a covenant or
condition required to be performed pursuant to the terms of this Agreement
falls upon a Saturday, Sunday or Federal or State of Illinois holiday, such
time for performance shall be extended to the next business day. Otherwise all
references herein to “days” shall mean calendar days.

 

14.17         Signatures.
Handwritten signatures to this Agreement transmitted by telecopy or electronic
transmission (for example, through use of a Portable Document Format or “PDF”
file) shall be valid and effective to bind the party so signing. Each party
agrees to promptly deliver to the other party an executed original of this
Agreement with its actual signature, but a failure to do so shall not affect
the enforceability of this Agreement, it being expressly agreed that each party
to this Agreement shall be bound by its own telecopied or electronically
transmitted handwritten signature and shall accept the telecopied or
electronically transmitted handwritten signature of the other party to this
Agreement.

 

14.18         Legal
Representation. Each party hereto has been represented by legal counsel in
connection with the negotiation of the transactions herein contemplated and the
drafting and negotiation of this Agreement. Each party hereto and its counsel
has had an opportunity to review and suggest revisions to the language of this
Agreement. Accordingly, no provision of this Agreement shall be construed for
or against or interpreted to the benefit or disadvantage of any party by reason
of any party having or being deemed to have structured or drafted such
provision.

 

14.19         Prevailing
Party Attorney Fees. If either Seller or Purchaser files suit to enforce
the obligations of the other party under this Agreement, the prevailing party
shall be entitled to recover the reasonable fees and expenses of its attorneys
from the non-prevailing party

 

14.20         3-14
Audit. Seller acknowledges that Purchaser may be required by applicable law
to have audited financial statements pertaining to the net operating income
(i.e. rental revenue, repairs and maintenance expenses, utilities, payroll,
real estate taxes, insurance, management fees, etc.) of the Property (but
not with respect to Seller or any of its affiliates) prepared with respect to
the period that is up to three (3) years prior to the Closing Date and
that Purchaser may cause to be prepared audited financial statements with
respect to the Property in compliance with the policies of Purchaser and
certain laws, including applicable regulations promulgated by the Securities
and Exchange Commission. Accordingly, Seller agrees to provide Purchaser and
its representatives with reasonable access to Seller’s books and records
relating to the financial operation of the Property only (and not with respect
Seller or any of its affiliates)

 

27

 

for a period of one (1) year after the Closing upon not less than
ten (10) business days’ advance written notice in order for Purchaser to
conduct the required audit, at Purchaser’s sole expense; provided, however,
Seller shall have no obligation to create or prepare any new financial
statements or reports, and Purchaser’s right to inspect the Seller’s books and
records relating to the financial operation of the Property shall be limited to
the Seller’s then existing books and records, in whatever form said books and
records then exist. Further, Purchaser hereby acknowledges and agrees that
Seller shall not be deemed to have made any representations or warranties with
respect to Seller’s books, records and other documents that Purchaser and/or
its representatives may review in connection with such audit, and Seller shall
have no liability to Purchaser or any other party in connection therewith.
Further, Purchaser hereby agrees to indemnify, defend and hold Seller harmless
from and against any and all claims, liabilities, loss, costs and damages
suffered by Seller in connection with Purchaser’s access to the books and
records described in this Section 14.20 and the audited financial
statements resulting therefrom. Purchaser shall reimburse Seller, on demand,
for any and all out-of-pocket costs reasonably incurred by Seller in
cooperating with such audit. The provisions of this Section 14.20 shall
survive Closing.

 

14.21         Title
Insurance. Seller agrees to use good faith, diligent efforts to cause the
Title Insurer, at Closing, to issue (or irrevocably commit to issue) the
Owner’s Policy required under this Agreement. If, however, the Title Insurer
fails or refuses to issue (or irrevocably commit to issue) said Owner’s Policy
at Closing, and provided that (i) Seller has utilized good faith, diligent
efforts to cause Title Insurer to issue (or irrevocably commit to issue) the
Owner’s Policy, (ii) Seller has delivered all customary indemnifications
and/or affidavits to the Title Insurer to enable the Title Insurer to issue (or
irrevocably commit to issue) the Owner’s Policy, and (iii) the failure of
the Title Insurer to issue (or irrevocably commit to issue) the Owner’s Policy
is not a result of any default of Seller hereunder, then, notwithstanding
anything contained in this Agreement to the contrary, the failure of the Title
Insurer to issue (or irrevocably commit to issue) said Owner’s Policy shall not
be deemed a default by Seller hereunder, and, in lieu thereof, and as its sole
recourse, Purchaser may elect to either (1) terminate this Agreement, in
which event the Earnest Money (specifically excluding the Option Fee, which
shall be paid to Seller) and any interest thereon net of investment charges
shall be forthwith returned to Purchaser, all obligations of the parties
hereunder shall terminate, and this Agreement shall otherwise have no further
force and effect (other than those matters which expressly survive early
termination of this Agreement), or (2) proceed to close the transactions
contemplated hereby in accordance with the terms of this Agreement, whereupon
Purchaser shall accept such form of title insurance policies, if any, as the Title
Insurer is then prepared to issue. Purchaser’s failure to make either of the
two elections described in the preceding sentence on or before the Closing Date
shall be deemed an election of option (2) above.

 

[Signature
Page Follows]

 

28

 

IN WITNESS WHEREOF, Seller and Purchaser have executed and delivered
this Agreement as of the date first above written.

 

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  STARK BURNHAM POINTE LLC,

  
	
   

  	
  a Wisconsin limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Linda Gorens-Levy

  
	
   

  	
  Name:

  	
  Linda Gorens-Levy

  
	
   

  	
  Its:

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD MULTIFAMILY OP I, 

  
	
   

  	
  LP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By: BHMF, Inc., a Delaware corporation

  
	
   

  	
  Its: General Partner

  
	
   

  	
   

  

 

	
   

  	
  By:

  	
  /s/ Robert T. Poynter

  
	
   

  	
  Name:

  	
  Robert T. Poynter

  
	
   

  	
  Its:

  	
  Vice President

  

 

29

 

EXHIBITS

 

A — Legal Description

B — List of Personal Property

C — List of Service Contracts

D — Earnest Money Escrow Instructions

E — Permitted Exceptions

F — Exceptions to the Deed

G — Special Warranty Deed

H — Bill of Sale

I — Tenant Notice Letter

J — Assignment and
Assumption of Leases, Security Deposits and Service Contracts

K — Assignment of Intangibles

L — Rent Roll

M — [intentionally deleted]

N — Material Defects Affecting Property

O — Notice of Pending Litigation

P — Notice of Violations

 

30

 

BURNHAM
POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

PARCEL 1:

 

LOTS 4, 9 AND 10 IN BLOCK 111 IN E.K. HUBBARD’S SUBDIVISION OF BLOCKS
5, 60, 66, 75, 85, 104, 105, 108 THROUGH 112 IN SCHOOL SECTION ADDITION TO
CHICAGO IN SECTION 16, TOWNSHIP 39 NORTH, RANGE 14, EAST OF THE THIRD
PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS.

 

PARCEL 2:

 

LOTS 15, 16,21 AND 22 IN BLOCK 111 IN E.K. HUBBARD’S SUBDIVISION OF
BLOCKS 5, 60, 66, 75, 85, 104, 105, 109, 111 AND 112 IN SCHOOL
SECTION ADDITION TO CHICAGO OF SECTION 16, TOWNSHIP 39 NORTH, RANGE
14, EAST OF THE THIRD PRINCIPAL MERIDIAN, (EXCEPT THAT PART OF LOT 22
CONVEYED TO CITY OF CHICAGO, A MUNICIPAL CORPORATION, BY WARRANTY DEED RECORDED
OCTOBER 17, 1983 AS DOCUMENT 26823367 DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE INTERSECTION OF THE SOUTH LINE OF LOT 22 AND THE
WEST LINE OF SOUTH CLARK STREET, AS WIDENED, THENCE WEST ALONG THE SOUTH LINE
OF SAID LOT A DISTANCE OF 101 FEET TO THE EAST LINE OF THE PUBLIC ALLEY, THENCE
NORTH ALONG THE EAST LINE OF SAID ALLEY A DISTANCE OF 2 FEET; THENCE
NORTHEASTERLY ALONG A STRAIGHT LINE A DISTANCE OF 102.14 FEET TO A POINT ON THE
WEST LINE OF SOUTH CLARK STREET, AS WIDENED, SAID POINT BEING 17.22 FEET NORTH
OF THE POINT OF BEGINNING, THENCE SOUTH ALONG THE WEST LINE OF SOUTH CLARK
STREET, AS WIDENED, A DISTANCE OF 17.22 FEET TO THE POINT OF
BEGINNING), IN COOK COUNTY, ILLINOIS.

 

A-1

 

BURNHAM
POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT B 

 

LIST OF PERSONAL PROPERTY

 

Burnham
Pointe Inventory 6/7/2010

 

	
  In Units:

  	
   

  	
  Units

  	
   

  
	
  Refrigerators

  	
   

  	
  298

  	
   

  
	
  Diswashers

  	
   

  	
  298

  	
   

  
	
  Gas Ranges

  	
   

  	
  298

  	
   

  
	
  Washer/Dryers

  	
   

  	
  298

  	
   

  
	
  Microwaves

  	
   

  	
  298

  	
   

  

 

	
  Party Room:

  	
   

  	
  Units

  	
   

  
	
  Lounge Chairs

  	
   

  	
  4

  	
   

  
	
  Cocktail Table

  	
   

  	
  3

  	
   

  
	
  Bench Tables

  	
   

  	
  2

  	
   

  
	
  Samsung 32” LCD Flat
  Screens

  	
   

  	
  4

  	
   

  
	
  Samsung 46” LCD Flat
  Screens

  	
   

  	
  2

  	
   

  
	
  Wall Brackets for TV’s

  	
   

  	
  6

  	
   

  
	
  Bar Chairs

  	
   

  	
  6

  	
   

  
	
  Pool Table

  	
   

  	
  1

  	
   

  
	
  Couch

  	
   

  	
  1

  	
   

  
	
  Lounge Chairs

  	
   

  	
  2

  	
   

  
	
  set of pool sticks and
  balls

  	
   

  	
  1

  	
   

  
	
  art pictures

  	
   

  	
  2

  	
   

  

 

	
  Work Out Facilities:

  	
   

  	
   

  	
   

  
	
  Treadmills

  	
   

  	
  4

  	
   

  
	
  Recumbant Bikes

  	
   

  	
  2

  	
   

  
	
  Eliptical Machines

  	
   

  	
  2

  	
   

  
	
  Weight Bench Sets

  	
   

  	
  2

  	
   

  
	
  Conversion Recumbant Rower

  	
   

  	
  1

  	
   

  
	
  Ball Set (ab)

  	
   

  	
  1

  	
   

  
	
  Free Weight Set

  	
   

  	
  1

  	
   

  
	
  Equipment Mats

  	
   

  	
  8

  	
   

  

 

B-1

 

	
  37” LCD Flat Screen TV’s

  	
   

  	
  3

  	
   

  
	
  Get Fit Lat/Row Machine

  	
   

  	
  1

  	
   

  
	
  Get Fit Multiple Press
  machine

  	
   

  	
  1

  	
   

  
	
  Get Fit Leg Curl/extension
  machine

  	
   

  	
  1

  	
   

  

 

	
  Parking Garage:

  	
   

  	
   

  	
   

  
	
  Parking Equipment

  	
   

  	
  1

  	
   

  

 

	
  Common Areas

  	
   

  	
   

  	
   

  
	
  Trash Compactor

  	
   

  	
  1

  	
   

  
	
  Security System

  	
   

  	
  1

  	
   

  
	
  Cameras

  	
   

  	
  16

  	
   

  

 

	
  Business Center:

  	
   

  	
   

  	
   

  
	
  Conference Table

  	
   

  	
  1

  	
   

  
	
  7 Conference Chairs

  	
   

  	
  7

  	
   

  
	
  3 Computer

  	
   

  	
  3

  	
   

  
	
  Computer Desk

  	
   

  	
  1

  	
   

  
	
  3 Computer chairs

  	
   

  	
  3

  	
   

  
	
  Printer (now located in
  the office)

  	
   

  	
  1

  	
   

  

 

	
  Offices

  	
   

  	
   

  	
   

  
	
  Phones

  	
   

  	
  7

  	
   

  
	
  computers

  	
   

  	
  5

  	
   

  
	
  Desks

  	
   

  	
  6

  	
   

  

 

	
  Patio Furniture:

  	
   

  	
   

  	
   

  
	
  2 Grills

  	
   

  	
  2

  	
   

  
	
  4 patio tables with
  umbrellas

  	
   

  	
  4

  	
   

  
	
  12 lounge chairs

  	
   

  	
  12

  	
   

  
	
  16 chairs

  	
   

  	
  16

  	
   

  
	
  8 padded chairs

  	
   

  	
  8

  	
   

  
	
  1 padded couch

  	
   

  	
  1

  	
   

  
	
  6 end tables

  	
   

  	
  6

  	
   

  

 

	
  Supply Room

  	
   

  	
   

  	
   

  
	
  Carpet Shamppoer

  	
   

  	
  1

  	
   

  

 

	
  706 Model

  	
   

  	
   

  	
   

  
	
  T297-0 PR TABLES

  	
   

  	
  1

  	
   

  
	
  AVERILLE DRESSER

  	
   

  	
  1

  	
   

  
	
  AVERILE NIGHTSTAND

  	
   

  	
  2

  	
   

  

 

B-2

 

	
  DAWSON SOFA, FAB: SONNY
  ALOE

  	
   

  	
  1

  	
   

  
	
  DINING TABLE

  	
   

  	
  1

  	
   

  
	
  CHAIR

  	
   

  	
  2

  	
   

  
	
  TV UNIT

  	
   

  	
  1

  	
   

  
	
  SIDE CHAIR, DK BROWN

  	
   

  	
  4

  	
   

  
	
  BED, ENTIRE BED

  	
   

  	
  1

  	
   

  
	
  KING ROYAL SPLENDER, MATT
  ONLY

  	
   

  	
  1

  	
   

  
	
  3/3 X 80 FOUNDATION

  	
   

  	
  2

  	
   

  
	
  BECKETTE BUFFET

  	
   

  	
  1

  	
   

  
	
  ARISTO HALIFAX TABLE

  	
   

  	
  2

  	
   

  
	
  DESK & HUTCH

  	
   

  	
  1

  	
   

  
	
  NOVA 25” STOOLS

  	
   

  	
  3

  	
   

  

 

	
  703 Model

  	
   

  	
   

  	
   

  
	
  END TABLE

  	
   

  	
  1

  	
   

  
	
  COCKTAIL

  	
   

  	
  1

  	
   

  
	
  HEADBOARD, IVORY
  QUEEN,

  	
   

  	
  1

  	
   

  
	
  LOVESEAT

  	
   

  	
  1

  	
   

  
	
  DINING CHAIR, BROWN/CHROME

  	
   

  	
  4

  	
   

  
	
  STOOL, WALNUT/NICKEL

  	
   

  	
  2

  	
   

  
	
  FULL HEADBOARD
  FINISH:CHAMPAGNE

  	
   

  	
  1

  	
   

  
	
  SERVER

  	
   

  	
  1

  	
   

  
	
  DRAWER CHEST

  	
   

  	
  1

  	
   

  
	
  NIGHTSTAND

  	
   

  	
  1

  	
   

  
	
  REGAL SPLENDOR QUEEN SET
  W/RAILS

  	
   

  	
  1

  	
   

  
	
  REGAL SPLENDOR FULL SET
  W/RAILS

  	
   

  	
  1

  	
   

  
	
  FREEMAT

  	
   

  	
  2

  	
   

  
	
  URBAN SAFARI

  	
   

  	
  1

  	
   

  
	
  MILAN CHAIRS,
  FINISH:MOCHA,

  	
   

  	
  2

  	
   

  
	
  TV CONSOLE

  	
   

  	
  1

  	
   

  
	
  CHAIR, FAB: BARK,
  FINISH:AMERICANA

  	
   

  	
  1

  	
   

  
	
  DINING TABLE

  	
   

  	
  1

  	
   

  
	
  BRISTOL BENCH

  	
   

  	
  1

  	
   

  

 

	
  Maintenance Equipment

  Inventory

  	
   

  	
   

  	
   

  
	
  CRESCENT NUT DRIVERS

  	
   

  	
  1

  	
   

  
	
  FILE SET -10 PIECE SET

  	
   

  	
  1

  	
   

  
	
  WATER HOSES

  	
   

  	
  2

  	
   

  
	
  BLUE DUMPSTER

  	
   

  	
  1

  	
   

  
	
  LUGGAGE CARTS

  	
   

  	
  3

  	
   

  

 

B-3

 

	
  PORTER AIR COMPRESSOR

  	
   

  	
  1

  	
   

  
	
  POULAN PRO AIR BLOWER

  	
   

  	
  1

  	
   

  
	
  GENERAL ROD

  	
   

  	
  1

  	
   

  
	
  GAS CANS

  	
   

  	
  2

  	
   

  
	
  RIGID ROD

  	
   

  	
  1

  	
   

  
	
  400A AC CLAMP METER

  	
   

  	
  1

  	
   

  
	
  TUB DRAIN REMOVER

  	
   

  	
  1

  	
   

  
	
  BENZOMATIC TORCHES

  	
   

  	
  2

  	
   

  
	
  GREASE GUN

  	
   

  	
  1

  	
   

  
	
  50FT ELECTRICAL CORD

  	
   

  	
  1

  	
   

  
	
  BOSCH ROTARY HAMMER

  	
   

  	
  1

  	
   

  
	
  PERFORMANCE KEY MACHINE

  	
   

  	
  1

  	
   

  
	
  SANITAIRE FLOOR MACHINE

  	
   

  	
  1

  	
   

  
	
  HOOVER SPIN SWEEP

  	
   

  	
  1

  	
   

  
	
  SANITAIRE VACUUM

  	
   

  	
  1

  	
   

  
	
  SKIL SAW

  	
   

  	
  1

  	
   

  
	
  DEWALT COMBO SAW/DRILL

  	
   

  	
  1

  	
   

  
	
  SHOP VAC RIGHT STUFF

  	
   

  	
  1

  	
   

  
	
  6FT LADDER

  	
   

  	
  1

  	
   

  
	
  3FT LADDER

  	
   

  	
  1

  	
   

  
	
  12FT LADDER

  	
   

  	
  1

  	
   

  
	
  SALT SPREADER

  	
   

  	
  1

  	
   

  
	
  LOCKOUT TAG OUT KIT

  	
   

  	
  1

  	
   

  
	
  COMPLIANCE CENTER

  	
   

  	
  1

  	
   

  
	
  MSDS BOOK

  	
   

  	
  1

  	
   

  
	
  YARD MACHINE SNOW BLOWER

  	
   

  	
  1

  	
   

  
	
  SANITAIRE EXTRACTOR

  	
   

  	
  1

  	
   

  
	
  SUNBEAM MICROWAVE

  	
   

  	
  1

  	
   

  
	
  WORK PRO POWER WASHER

  	
   

  	
  1

  	
   

  
	
  SNOW SHOVELS

  	
   

  	
  2

  	
   

  
	
  ICE SCRAPER

  	
   

  	
  1

  	
   

  
	
  JANITOR CART

  	
   

  	
  2

  	
   

  
	
  DOLLY

  	
   

  	
  1

  	
   

  
	
  POWER GRIP

  	
   

  	
  2

  	
   

  
	
  VIPER BUFFER

  	
   

  	
  1

  	
   

  

 

B-4

 

BURNHAM POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT C 

 

LIST OF SERVICE CONTRACTS

 

	
  Contracts

  	
   

  	
  Vendor

  
	
  Apartment Advertising

  	
   

  	
  Apartmentguide.com

  
	
  Cable/Internet

  	
   

  	
  MDU

  
	
  Copier

  	
   

  	
  Canon

  
	
  Elevator Contract

  	
   

  	
  Schindler

  
	
  Exterminator

  	
   

  	
  Smithereen

  
	
  Fire Alarm Monitoring

  	
   

  	
  Fox Valley Fire and Safety

  
	
  Annual sprinkler test

  	
   

  	
  Alliance Fire Protection

  
	
  Fire panel test/extinguisher testing

  	
   

  	
  Simplex Grinnell

  
	
  Flower Delivery for lobby

  	
   

  	
  Thomas Joseph Design

  
	
  Furniture Rental

  	
   

  	
  Brook Furniture

  
	
  HVAC Contact

  	
   

  	
  Advance Mechanical Systems

  
	
  Key System

  	
   

  	
  Keytrak

  
	
  Plant rental

  	
   

  	
  Plantscapes

  
	
  Landscaping

  	
   

  	
  Clarence Davids

  
	
  Laundry

  	
   

  	
  Cintas

  
	
  Parking Garage

  	
   

  	
  Standard Parking

  
	
  Pool Equip/Supplies

  	
   

  	
  Liquid Service

  
	
  Telephone

  	
   

  	
  Globalcom First Communications

  
	
  Union Janitors/Doorstaff

  	
   

  	
  Local 1 and 25

  
	
  Utility Billing

  	
   

  	
  Conservice

  
	
  Waste Removal

  	
   

  	
  Waste Management

  
	
  Property Management

  	
   

  	
  Draper and Kramer

  

 

C-1

 

BURNHAM POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT D 

 

EARNEST MONEY ESCROW
INSTRUCTIONS

 

Chicago Title Insurance Company 

712 Main St., Suite 2000E

Houston, Texas 77002-3223

Attention: Jimmy Erwin

Telephone: 713-238-9191

Facsimile: 713-238-9190

Date:                                     ,
2010

 

TO:  Chicago Title Insurance Company  

 

Attn: Jimmy Erwin

 

The amount of Two Million and No/100ths Dollars ($2,000,000.00)
(together with any additional earnest money deposit hereafter made by
Purchaser, the “Escrow Deposit”) is deposited with
the Houston Chicago office of Chicago Title Insurance Company in escrow by
Behringer Harvard Multifamily OP I LP, a Delaware limited partnership, the “Purchaser” under that certain Real Estate Sale Agreement
(the “Agreement”), dated                                       ,
2010, with Stark Burnham Pointe LLC, a Wisconsin limited liability company, as
the “Seller”.

 

As escrowee, you are hereby directed to hold, deal with and dispose of
the Escrow Deposit in accordance with the following terms and conditions:

 

1.                                       You are to hold
the Escrow Deposit until: (a) you are in receipt of a joint order by the undersigned
Seller and Purchaser as to the disposition of the Escrow Deposit; (b) you
are in receipt of a written demand (the “Demand”) from either Seller or
Purchaser for the payment of the Escrow Deposit or any portion thereof; or
(c) you are in receipt of a copy of any notice from Purchaser received on
or before the end of the Review Period (as defined in the Agreement) and
terminating the Agreement pursuant to Section 8.1.1 thereof. Upon receipt
of any Demand, you are directed to so notify the other party, enclosing a copy
of the Demand. If within five (5) days after the non-demanding party has
received or is deemed to have received your notice of your receipt of the
Demand, you have not received from the non-demanding party its notice of
objection to the Demand, then you are to disburse the Escrow Deposit as
requested by the Demand. If within said five-day period you receive from the
non-demanding party its notice of objection to the Demand, then you are
directed to notify the other party, enclosing a copy of the notice of
objection, and you are to continue to hold the Escrow Deposit until you are in
receipt of a joint order as aforesaid, but after sixty (60) days you may
deposit the

 

D-1

 

Escrow Deposit with a Court of competent
jurisdiction. If you are in receipt of any notice described in the preceding
clause (c), then you are not required to obtain Seller’s approval thereof, and
you shall not withhold disbursement of the Escrow Deposit to Purchaser pending
receipt of Seller’s approval thereof; provided, however, that before you
disburse any portion of the Escrow Deposit to Purchaser you must first disburse
$250,000 to Seller (such amount representing Seller’s share of the “Option Fee” described in the Agreement).

 

2.                                       Notwithstanding
the foregoing, as escrowee, you are hereby expressly authorized to regard and
to comply with and obey any and all orders, judgments or decrees entered or
issued by any Court, and in case you obey or comply with any such order,
judgment or decree of any Court, you shall not be liable to either of the
parties hereto or any other person or entity by reason of such compliance,
notwithstanding any such order, judgment or decree be entered without jurisdiction
or be subsequently reversed, modified, annulled, set aside or vacated. In case
of any suit or proceeding regarding these Escrow Instructions, to which you are
or may at any time be a party, the undersigned Seller and Purchaser agree that
the non-prevailing party shall pay to you upon demand all reasonable costs and
expenses incurred by you in connection herewith.

 

3.                                       Any escrow fee
to be charged by you is to be borne equally by the undersigned Seller and
Purchaser.

 

4.                                       As escrowee,
you shall invest the Escrow Deposit in an interest-bearing savings or money
market account or short term U.S. Treasury Bills or similar cash equivalent
securities at one or more institutions approved by Purchaser, as the
undersigned Purchaser may direct. Any interest earned on the Escrow Deposit,
after you deduct your customary investment charges, shall become and be deemed
to be a part of the Escrow Deposit.

 

5.                                       All notices or
other communications hereunder shall be in writing and shall be personally
delivered or sent by overnight courier (such as Federal Express), by facsimile
transmission or by first class United States Mail, postage prepaid, registered
or certified (return receipt requested) to the respective addresses for the
Seller, Purchaser and escrowee as herein provided (with concurrent copies of
all such notices or communications being delivered to the parties’ respective
counsel at the addresses set forth herein). A notice is given on the date it is
personally delivered, sent by overnight courier or facsimile transmission, or
deposited with the United States Mail for delivery as aforesaid. A notice is
received on the date it is personally delivered, the day after sent if sent by
overnight courier or facsimile transmission or, if sent by mail as aforesaid,
on the date noted on the return receipt.

 

6.                                       Seller and
Purchaser may act hereunder either directly or through their respective
attorneys:

 

Seller’s attorney is:

 

Quarles & Brady LLP

300 N. LaSalle Street, Suite 4000

 

D-2

 

Chicago, Illinois 60654

Attn: Thomas A. McCarthy 

Telephone: (312) 715-5061 

Facsimile: (312) 632-1733

 

Purchaser’s attorney is:

 

Miller, Egan, Molter & Nelson LLP 

4514 Cole Avenue, Suite 1250 

Dallas, Texas 75205

Attn: Walter D. Miller

Telephone: (214) 628-9502

Facsimile: (214) 628-9505

 

7.                                       These Escrow
Instructions are being entered into to implement the Agreement and shall not
(nor be deemed to) amend, modify or supersede the Agreement or act as a waiver
of any rights, obligations or remedies set forth therein; provided, however,
that you may rely solely upon these Escrow Instructions.

 

8.                                       In case of any
suit or proceeding at law or in equity regarding the Escrow Deposit or these
Escrow Instructions, the non-prevailing party shall pay the prevailing party
all costs and expenses (including, but not limited to, attorney’s fees)
incurred by the prevailing party, and if such prevailing party shall recover
judgment in any such suit or proceeding, such costs and expenses (including but
not limited to attorneys’ fees) shall be included in and as a part of such
judgment.

 

9.                                       Seller and
Purchaser hereby designate Escrowee to act as and perform the duties and
obligations of the “reporting person” with respect to the transaction
contemplated by the Agreement for purposes of 26 C.F.R.
Section 1.6045-4(e)(5) relating to the requirements for information
reporting on real estate transaction closed on or after January 1, 1991.

 

10.                                 These Escrow
Instructions may be signed in any number of counterparts each of which shall be
deemed to be an original and all of which taken together shall constitute one
and the same instrument.

 

[SIGNATURE PAGE FOLLOWS]

 

D-3

 

Agreed and Acknowledged this
18th day of June, 2010.

 

 

	
  PURCHASER:

  	
   

  	
  SELLER:

  
	
   

  	
   

  	
   

  
	
   BEHRINGER HARVARD

  	
   

  	
  STARK BURNHAM POINTE LLC,

  
	
   MULTIFAMILY OP I, LP, a Delaware

  	
   

  	
  a Wisconsin limited liability company

  
	
   limited partnership

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   By: BHMF, Inc., a Delaware corporation

  	
   

  	
  By:

  	
   

  
	
   Its: General Partner

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  	
   

  
	
  Behringer Harvard Multifamily OP I LP 

  15601 Dallas Parkway, Suite 600 

  Addison, Texas 75001

  Attn: Robert T. Poynter 

  Telephone: 214-655-1600

  	
   

  	
  c/o Stark Investments 

  3600 South Lake Drive 

  St. Francis, Wisconsin 53235 

  Attn: Linda Gorens-Levey / Anthony Marino 

  Telephone: (414) 294-7786

  

 

 

Agreed and Acknowledged this                       day
of                 ,
2010.

 

 

	
  CHICAGO TITLE INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

D-4

 

BURNHAM
POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT E

 

PERMITTED
EXCEPTIONS

 

1.                                       Acts of
Purchaser, and those claiming by, through and under Purchaser.

 

2.                                       General and
special taxes and assessments not yet delinquent.

 

3.                                       Rights of
tenants in possession, as tenants only, under unrecorded Leases.

 

4.                                       Zoning,
building and other governmental and quasi-governmental laws, codes and
regulations.

 

5.                                       Water rights,
claims or title to water.

 

6.                                       All other
exceptions that become Permitted Exceptions in accordance with the provisions
of Section 3.

 

E-1

 

BURNHAM
POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT F 

 

EXCEPTIONS TO THE DEED

 

1.                                       Acts of Purchaser, and those
claiming by, through and under Purchaser.

 

2.                                       General and special taxes
and assessments not yet delinquent.

 

3.                                       Rights of tenants under
leases, and those claiming by, through and under said tenants.

 

4.                                       Zoning, building and other
governmental and quasi-governmental laws, codes and regulations.

 

5.                                       Any adverse
claim to any portion of the Property which has been created by artificial means
or has accreted to any such portion so created and riparian rights, if any.

 

6.                                       Covenants,
conditions, restrictions, and private or public utility easements of record
together with easements or claims of easements not shown by the public records.

 

7.                                       Encroachments,
overlaps, boundary line disputes, or other matters which would be disclosed by
an accurate survey or inspection of the Property.

 

8.                                       Add all other exceptions
that become Permitted Exceptions in accordance with the provisions of
Section 3.

 

F-1

 

BURNHAM
POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT G

 

When Recorded, Mail to:

 

 

 

 

SPECIAL
WARRANTY DEED

 

For the consideration of the sum of Ten Dollars ($10.00) and other
valuable considerations received, STARK BURNHAM POINTE LLC, a Wisconsin limited
liability company (“Grantor”), does hereby convey to             ,
a(n)                (“Grantee”),
all of Grantor’s right, title and interest in and to the following described
real property (the “Property”) situated in Cook County, Illinois, together
with all improvements thereon and all of Grantor’s interest in any rights and
privileges solely appurtenant thereto:

 

SEE EXHIBIT A ATTACHED HERETO AND BY
THIS

REFERENCE MADE A PART HEREOF.

 

SUBJECT TO: the permitted exceptions set forth on Exhibit B
attached hereto and by this reference made a part hereof.

 

AND GRANTOR hereby binds itself and its successors
to warrant and defend the title against all of the acts of Grantor and no
other, subject to the matters set forth above.

 

Grantee, on behalf of itself, its successors and its
assigns, agrees to indemnify, defend and hold Grantor, Grantor’s affiliates,
and each of their respective members, partners, officers, directors, trustees,
parents, subsidiaries, shareholders, managers, beneficiaries, employees and
agents, harmless from and against any and all demands, claims, causes of
action, legal or administrative proceedings, losses, liabilities, damages,
penalties, fines, liens, judgments, costs or expenses whatsoever and of any
kind or nature (including, without limitation, court costs and reasonable
attorneys’ fees and disbursements arising out of any of the above), whether in
tort, contract or otherwise, and whether arising under statutes in effect in
the State of Illinois or otherwise, arising out of or directly relating to
claims made or brought by or on behalf of any party or parties who acquire or
contract to acquire any ownership interest in the Property following the filing
or recording of any document providing for the conversion of the Property to a
form of condominium ownership under any state or local law (including, without
limitation,

 

G-1

 

condominium and homeowner associations), and their successors and
assigns, in connection with or related to, the physical condition of the
Property prior to, at and subsequent to the date of this Deed, including,
without limitation, with respect to deficiencies (including, without
limitation, any latent or patent defect) in the design, specification,
surveying, planning, development, supervision or construction of an improvement
to the Property, or any injury arising out of any such deficiency, all structural
and seismic elements of the Property, all mechanical, electrical, plumbing,
sewage, heating, ventilating, air conditioning and other systems, the existence
of asbestos, mold, mildew or fungi and the environmental condition of the
Property.

 

The foregoing indemnification, covenants, conditions
and restrictions shall run with title to the Property herein described, and
shall inure to the benefit of, and shall be binding upon, Grantor and Grantee
and their respective heirs, successors and assigns. In the event of any sale,
transfer or other disposition of the Property by Grantee, Grantee shall
endeavor to provide Grantor with written notice thereof at least five
(5) business days prior to the effective date thereof. Such notice shall
be sent by nationally recognized overnight delivery service to:

 

c/o Stark Investments

3600 South Lake Drive

St. Francis, Wisconsin 53235 

Attention: Real Estate Manager

 

If any term or provision of this Deed or the
application thereof to any persons or circumstances shall, to any extent, be
invalid or unenforceable, the remainder of this Deed 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 term
and provision of this Deed shall be valid and enforced to the fullest extent
permitted by law.

 

IN WITNESS WHEREOF, Grantor has caused this Special
Warranty Deed to be executed this        day
of                 ,
2010.

 

	
   

  	
  GRANTOR:

  
	
   

  	
   

  
	
   

  	
  STARK BURNHAM POINTE LLC,

  
	
   

  	
  a Wisconsin limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  	
   

  

 

G-2

 

BURNHAM POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT H

 

BILL OF SALE

 

THIS BILL OF SALE (this “Bill of Sale”) is executed as of the                               
day of 2010, by STARK BURNHAM POINTE LLC, a Wisconsin limited liability company
(“Seller”), having offices at c/o Stark Investments, 3600 South Lake Drive, St.
Francis, Wisconsin 53235, in favor of                         a(n)                      
(“Purchaser”), having offices at                           .

 

1.             Real Property.
The “Real Property” shall mean the real property located in the County of Cook,
State of Illinois, commonly known as the Burnham Pointe Apartments and located
at 720-30 S. Clark Street, Chicago, Illinois.

 

2.             Personal
Property. The “Personal Property” shall mean those certain articles of
personal property used in connection with the operation of the Real Property
which are described in Exhibit A attached to this Bill of Sale.

 

3.             Sale. For
good and valuable consideration received by Seller, the receipt and sufficiency
of which are hereby acknowledged, Seller hereby sells, assigns and transfers
the Personal Property to Purchaser. Seller covenants and agrees to warrant and
forever defend title to the Personal Property unto Purchaser against any and
all persons lawfully claiming the whole or any part thereof by, through or
under Seller, and none other. Except as set forth in the immediately preceding
sentence, Seller makes no warranties or representations as to the Personal
Property. The Personal Property is transferred “AS IS” and ALL WARRANTIES OF
QUALITY, FITNESS AND MERCHANT ABILITY ARE HEREBY EXCLUDED.

 

[Signatures on Next Page]

 

 

H-1

 

IN WITNESS WHEREOF, Seller has executed this Bill of
Sale as of the day and year first above written.

 

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  STARK BURNHAM POINTE LLC, 

  
	
   

  	
  a Wisconsin limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
  PURCHASER’S ACKNOWLEDGEMENT AND RECEIPT:

  	
   

  
	
   

  	
   

  
	
  PURCHASER:

  	
   

  
	
   

  	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

G-2

 

BURNHAM POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT I

 

TENANT NOTICE LETTER

 

                                 ,
2010

 

Dear Tenant: 

 

Dear                                  ,

 

Stark Burnham Pointe LLC and the management team of
Burnham Pointe Apartments wish to inform you that as of                   ,
2010, Burnham Pointe Apartments will change ownership.

 

Stark Burnham Pointe LLC would like to thank you for
your residency at the Burnham Pointe Apartments and for allowing us to serve
your needs. Your security deposit will be transferred to the new owner, [INSERT
NEW OWNER’S NAME AND ADDRESS]. Please submit all future payments to the new
management company, as directed by the new owner.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Property Manager

  
	
   

  	
  Burnham Pointe Apartments

  

 

I-1

 

BURNHAM POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT J

 

ASSIGNMENT AND ASSUMPTION

OF LEASES, SECURITY DEPOSITS AND SERVICE CONTRACTS

 

THIS ASSIGNMENT AND ASSUMPTION OF LEASES, SECURITY DEPOSITS AND SERVICE
CONTRACTS (this “Assignment”) is entered into as of the                              day
of                          
, 2010, between STARK BURNHAM POINTE LLC, a Wisconsin limited liability company
(“Assignor”), having an office at c/o Stark Investments, 3600 South Lake Drive,
St. Francis, Wisconsin 53235 and                              ,
a(n)
                      
(“Assignee”) having an office at                             .

 

1.           Property.
The “Property” means the real property located in the City of Chicago, County
of Cook, State of Illinois, commonly known as “Burnham Pointe Apartments”,
together with the building, structures and other improvements located thereon.

 

2.           Leases.
The “Leases” means those leases, tenancies, rental agreements and occupancy
agreements affecting the Property which are described in Exhibit A
attached to this Assignment.

 

3.           Security
Deposits. “Security Deposits” means those security deposits held by or for
Assignor on account of tenants under the Leases as such deposits and with
respect to which Assignee received a credit at the closing of the transaction
with respect to which this Assignment has been executed and delivered. The
Security Deposits are set forth on attached Exhibit A.

 

4.           Service
Contracts. “Service Contracts” means those maintenance, supply and service
contracts relating to the Property which are described in Exhibit B
attached to this Assignment.

 

5.           Assignment.
For good and valuable consideration received by Assignor, the receipt and
sufficiency of which are hereby acknowledged, Assignor hereby grants, transfers
and assigns to Assignee the entire right, title and interest of Assignor in and
to the Leases, the Security Deposits and the Service Contracts, but reserving
unto Assignor all uncollected rent attributable to the period prior to the date
hereof pursuant to Section 4.4.2 of that certain Real Estate Sale Agreement
for the Property by and between Assignor and Assignee (as may have been amended
from time to time, the “Agreement”).

 

6.           Assumption.
Assignee hereby assumes the covenants, agreements and obligations of Assignor
as landlord or lessor under the Leases as of the date of this Assignment, and
Assignee further assumes all liability of Assignor for the proper refund or
return of the Security Deposits if, when and as required by the Leases.
Assignee hereby assumes the covenants, agreements and obligations of Assignor
under the Service Contracts which are applicable to the

 

J-1

 

period and required to be performed from and after the date of this
Assignment, but not otherwise.

 

7.           Attorneys’
Fees. If either Assignee or Assignor, or their respective successors or
assigns, file suit to enforce the obligations of the other party under this
Assignment, the prevailing party shall be entitled to recover the reasonable
fees and expenses of its attorneys.

 

8.           Successors
and Assigns. This Assignment shall be binding upon and inure to the benefit
of Assignor and Assignee and their respective successors and assigns.

 

9.           Limited
Liability. Assignor’s liability hereunder shall, at all times, be subject
to the limitations set forth in Section 12 of the Agreement.

 

10.         Counterparts.
This Assignment may be signed in any number of counterparts each of which shall
be deemed to be an original and all of which taken together shall constitute
one and the same instrument.

 

[Signature Page Follows]

 

J-2

 

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

 

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  STARK BURNHAM POINTE LLC,

  
	
   

  	
  a Wisconsin limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

J-3

 

BURNHAM POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT K

 

ASSIGNMENT AND ASSUMPTION
OF INTANGIBLES

 

THIS ASSIGNMENT OF INTANGIBLES (this “Assignment”)
is made as of the              
day of                           ,
2010, between STARK BURNHAM POINTE LLC, a Wisconsin limited liability company
(“Assignor”), having an office at c/o Stark Investments, 3600 South Lake Drive,
St. Francis, Wisconsin 53235 and                               ,
a(n)
                                 ,
(“Assignee”) having an office at                                  .

 

1.             Intangible
Property. The term “Intangible Property” shall have the meaning ascribed
thereto in that certain Real Estate Sale Agreement dated as of                      ,
2010 by and between Assignor, as Seller, and                        ,
as Purchaser, concerning the real property commonly known as “Burnham Pointe
Apartments” located in the City of Chicago, Cook County, Illinois.

 

2.           Assignment.
For good and valuable consideration received by Assignor, the receipt and
sufficiency of which are hereby acknowledged, Assignor hereby grants, transfers
and assigns to Assignee, without representation or warranty of any kind, the
entire right, title and interest of Assignor in and to the Intangible Property,
but only to the extent transferable without third party consent or any cost or
liability to Assignor.

 

3.           Assumption.
Assignee hereby assumes the entire right, title and interest of Assignor in and
to the Intangible Property as of the date of this Assignment.

 

4.           Successors
and Assigns. This Assignment shall be binding upon and inure to the benefit
of Assignor and Assignee and their respective successors and assigns.

 

5.           Limited
Liability. Assignor’s liability hereunder shall, at all times, be subject
to the limitations set forth in Section 12 of the Agreement.

 

6.           Counterparts.
This Assignment may be signed in any number of counterparts each of which shall
be deemed to be an original and all of which taken together shall constitute
one and the same instrument.

 

[Signature
Page Follows]

 

K-1

 

 

IN WITNESS WHEREOF, Assignor has executed and
delivered this Assignment the day and year first above written.

 

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  STARK BURNHAM POINTE LLC,

  
	
   

  	
  a Wisconsin limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title:

  	
   

  

 

K-2

 

BURNHAM POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT L 

 

RENT ROLL

 

L-1

 

EXHIBIT M

 

[intentionally deleted]

 

M-1

 

BURNHAM POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT N

 

MATERIAL DEFECTS AFFECTING
PROPERTY

 

1.             Various punctures /
holes in the membrane of the main roof.

 

N-1

 

BURNHAM POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT O

 

PENDING LITIGATION

 

 

1.             None.

 

O-1

 

BURNHAM POINTE APARTMENTS

CHICAGO, ILLINOIS

 

EXHIBIT P 

 

NOTICE OF VIOLATIONS

 

1.                                       Municipal Code
Violation of Section 13-20-550 for installing parking sign without required
permit — application for required permit for parking sign has been submitted to
the City of Chicago.

 

P-1

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