Document:

exv10w1

 

    Exhibit
10.1

 

    Agreement
    and Plan of Merger

 

    AGREEMENT AND PLAN OF MERGER (this
    “Agreement”), dated as of July 28, 2011,
    by and among CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3,
    LP, a Delaware limited partnership (“CCIP/3”),
    AIMCO CCIP/3 MERGER SUB LLC, a Delaware limited liability
    company (the “Aimco Subsidiary”), and AIMCO
    PROPERTIES, L.P., a Delaware limited partnership (“Aimco
    OP”).

 

    WHEREAS, ConCap Equities, Inc., the general partner of CCIP/3
    (“ConCap”) and owner of the Series A
    general partner interest (the “Series A GP
    Interest”) and Series B general partner interest
    (the “Series B GP Interest”) of CCIP/3,
    has determined that the Merger (as defined below) of the Aimco
    Subsidiary with and into CCIP/3, with CCIP/3 as the surviving
    entity, is advisable, fair to and in the best interests of
    CCIP/3 and its partners; and

 

    WHEREAS, Aimco OP, the sole member of the Aimco Subsidiary, has
    determined that the Merger of the Aimco Subsidiary with and into
    CCIP/3, with CCIP/3 as the surviving entity, is advisable, fair
    to and in the best interests of the Aimco Subsidiary and its
    member; and

 

    WHEREAS the Board of Directors of AIMCO-GP, Inc., the general
    partner of Aimco OP (“AIMCO-GP”), has
    determined that the Merger of the Aimco Subsidiary with and into
    CCIP/3, with CCIP/3 as the surviving entity, is advisable, fair
    to and in the best interests of Aimco OP and its
    partners; and

 

    WHEREAS, the parties desire to enter this Agreement to evidence
    the terms, provisions, representations, warranties, covenants
    and conditions upon which the Merger will be consummated.

 

    NOW, THEREFORE, in consideration of the mutual agreements and
    covenants set forth herein, and for other good and valuable
    consideration, the adequacy, sufficiency, and receipt of which
    are hereby acknowledged, CCIP/3, the Aimco Subsidiary and Aimco
    OP hereby agree as follows:

 

    Section 1.  The
    Merger.  Subject to the terms and conditions set
    forth herein, the Aimco Subsidiary shall be merged with and into
    CCIP/3 (the “Merger”), and CCIP/3 shall be the
    surviving entity of the Merger (the “Surviving
    Entity”). The Merger will have the effects specified in
    this Agreement,
    section 17-211
    of the Delaware Revised Uniform Limited Partnership Act, as
    amended (the “DRULPA”), and
    section 18-209
    of the Delaware Limited Liability Company Act, as amended (the
    “DLLCA”).

 

    Section 2.  General
    Partner.  ConCap will be the sole general partner
    of the Surviving Entity.

 

    Section 3.  Certificate.  As
    soon as practicable after the approval of this Agreement by a
    majority in interest of each class or series of limited
    partnership interests of CCIP/3, CCIP/3 shall cause to be filed
    a certificate of merger with respect to the Merger (the
    “Certificate of Merger”) with the Office of the
    Secretary of State of the State of Delaware pursuant to
    section 17-211
    of the DRULPA and
    section 18-209
    of the DLLCA. The Merger shall become effective at such time as
    the Certificate of Merger has been accepted for record by the
    Secretary of State of the State of Delaware (the
    “Effective Time”).

 

    Section 4.  Limited
    Partnership Agreement.  The agreement of limited
    partnership of CCIP/3 as in effect immediately prior to the
    consummation of the Merger (the “Partnership
    Agreement”) shall be the agreement of limited
    partnership of the Surviving Entity until thereafter amended in
    accordance with the provisions thereof and applicable law. The
    general partner and each limited partner of the Surviving Entity
    shall have the rights under, be bound by and be subject to the
    terms and conditions of, the Partnership Agreement, as a general
    partner or limited partner, as applicable.

 

    Section 5.  Treatment
    of Interests in CCIP/3.

 

    (a) Series A Units.

 

    (i) In connection with the Merger and in accordance with
    the procedures set forth in Section 5(a)(iii) of this
    Agreement, each Series A unit of limited partnership
    interest of CCIP/3 (each a “Series A
    Unit”) outstanding immediately prior to the Effective
    Time and held by limited partners of CCIP/3, except
    Series A Units held by

    

 

    limited partners who have perfected their appraisal rights
    pursuant to Exhibit A hereto, shall be converted
    into the right to receive, at the election of the limited
    partner, either (x) $59.36 in cash (the “Cash
    Consideration”) or (y) a number of partnership
    common units of Aimco OP calculated by dividing $59.36 by the
    average closing price of Apartment Investment and Management
    Company common stock, as reported on the New York Stock
    Exchange, over the ten consecutive trading days ending on the
    second trading day immediately prior to the Effective Time (the
    “OP Unit Consideration” and, together with
    the Cash Consideration, the “Merger
    Consideration”).

 

    (ii) Notwithstanding Section 5(a)(i) of this
    Agreement, if Aimco OP determines that the law of the state or
    other jurisdiction in which a limited partner resides would
    prohibit the issuance of partnership common units of Aimco OP in
    that state or other jurisdiction (or that the registration or
    qualification in that state or jurisdiction would be
    prohibitively costly), then such limited partner will only be
    entitled to receive the Cash Consideration for each
    Series A Unit.

 

    (iii) Aimco OP shall prepare a form of election (the
    “Election Form”) describing the Merger and
    pursuant to which each limited partner of CCIP/3 will have the
    right to elect to receive either the Cash Consideration or the
    OP Unit Consideration (subject to Section 5(a)(ii) of
    this Agreement). Aimco OP shall mail, or cause to be mailed, an
    Election Form to each limited partner, together with any other
    materials that Aimco OP determines to be necessary or prudent,
    no later than ten (10) days after the Effective Time. An
    election to receive the Cash Consideration or the OP Unit
    Consideration shall be effective only if a properly executed
    Election Form is received by Aimco OP or its designees prior to
    5:00 p.m., New York time, on the day that is thirty
    (30) days after the mailing of such Election Form by Aimco
    OP. If a limited partner fails to return a duly completed
    Election Form within the time period specified in the Election
    Form, such holder shall be deemed to have elected to receive the
    Cash Consideration. In addition, each limited partner that
    resides in a state or other jurisdiction that Aimco OP
    determines would prohibit the issuance of partnership common
    units of Aimco OP (or in which registration or qualification
    would be prohibitively costly) will be deemed to have elected
    the Cash Consideration. CCIP/3, the Aimco Subsidiary and Aimco
    OP agree that limited partners shall have the right to revoke
    any election made in connection with the Merger at any time
    prior to the expiration of the time period stated in the
    Election Form. Aimco OP and ConCap, by mutual agreement, shall
    have the right to make rules, not inconsistent with the terms of
    this Agreement, governing the validity of Election Forms and the
    issuance and delivery of the Merger Consideration, as applicable.

 

    (b) Series B Units.  Each
    Series B unit of limited partnership interest of CCIP/3
    outstanding immediately prior to the consummation of the Merger
    shall remain outstanding and unchanged, with all of the rights
    set forth in the Partnership Agreement.

 

    (c) General Partner’s
    Interests.  Each Series A GP Interest and
    each Series B GP Interest of CCIP/3 outstanding immediately
    prior to consummation of the Merger shall remain outstanding and
    unchanged, with all of the rights set forth in the Partnership
    Agreement.

 

    Section 6.  Treatment
    of Interests in Aimco Subsidiary.  The entire
    membership interest in the Aimco Subsidiary immediately prior to
    the Effective Time shall be converted into all of the
    Series A Units of the Surviving Entity.

 

    Section 7.  Appraisal
    Rights.  In connection with the Merger, the
    holders of Series A Units immediately prior to the Merger
    shall have the appraisal rights set forth in
    Exhibit A hereto.

 

    Section 8.  Covenants.  Aimco
    OP agrees to pay for, or reimburse CCIP/3 for, all expenses
    incurred by CCIP/3 in connection with the Merger. Aimco OP
    agrees to pay cash or issue and deliver common units of Aimco OP
    to the former holders of Series A Units, in accordance with
    Section 5(a) of this Agreement.

 

    Section 9.  Conditions
    to the Merger.

 

    (a) The Merger shall not occur unless and until the Merger
    has been approved or consented to by a majority in interest of
    each class or series of limited partnership interests of CCIP/3.

 

    (b) Notwithstanding any provisions of this Agreement to the
    contrary, none of the parties hereto shall be required to
    consummate the transactions contemplated hereby if any
    third-party consent, authorization or approval

    

 

    that any of the parties hereto deem necessary or desirable in
    connection with this Agreement, or the consummation of the
    transactions contemplated hereby, has not been obtained or
    received.

 

    Section 10.  Tax
    Treatment.  The parties hereto intend and agree
    that, for Federal income tax purposes, (i) any payment of
    cash for Series A Units shall be treated as a sale of such
    Series A Units by such holder and a purchase of such
    Series A Units by Aimco OP for the cash so paid under the
    terms of this Agreement in accordance with the guidelines set
    forth in Treas. Reg.
    Sections 1.708-1(c)(3)
    and 1.708-1(c)(4), and (ii) each such holder of
    Series A Units who accepts cash explicitly agrees and
    consents to such treatment. Furthermore, the parties hereto
    intend and agree that, for Federal income tax purposes,
    (x) any holder of Series A Units receiving partnership
    common units of Aimco OP under the terms of this Agreement shall
    be treated as receiving the partnership common units of Aimco OP
    pursuant to a distribution in complete liquidation of such
    holder’s interest in CCIP/3, and (y) each such holder
    of Series A Units who accepts partnership common units of
    Aimco OP explicitly agrees and consents to such treatment. Any
    cash and/or
    partnership common units of Aimco OP to which a holder of
    Series A Units is entitled pursuant to this Agreement shall
    be paid only after the receipt of a consent from such holder
    that, for Federal income tax purposes, the receipt of cash
    and/or
    partnership common units of Aimco OP shall be treated as
    described in this Section 10.

 

    Section 11.  Further
    Assurances.  From time to time, as and when
    required by the Surviving Entity or by its successors and
    assigns, there shall be executed and delivered on behalf of the
    Aimco Subsidiary such deeds and other instruments, and there
    shall be taken or caused to be taken by the Aimco Subsidiary all
    such further actions, as shall be appropriate or necessary in
    order to vest, perfect or confirm, of record or otherwise, in
    the Surviving Entity the title to and possession of all
    property, interests, assets, rights, privileges, immunities,
    powers, franchises and authority of the Aimco Subsidiary, and
    otherwise to carry out the purposes of this Agreement, and the
    officers and directors of ConCap are fully authorized in the
    name and on behalf of Aimco Subsidiary or otherwise to take any
    and all such action and to execute and deliver any and all such
    deeds and other instruments.

 

    Section 12.  Amendment.  Subject
    to applicable law, this Agreement may be amended, modified or
    supplemented by written agreement of the parties hereto at any
    time prior to the consummation of the Merger with respect to any
    of the terms contained herein.

 

    Section 13.  Abandonment.  At
    any time prior to consummation of the Merger, this Agreement may
    be terminated and the Merger may be abandoned without liability
    to any party hereto by any of the Aimco Subsidiary, Aimco OP or
    CCIP/3, in each case, acting in its sole discretion and for any
    reason or for no reason, notwithstanding approval of this
    Agreement by any of the members of the Aimco Subsidiary, the
    partners of CCIP/3 or the general partner of Aimco OP.

 

    Section 14.  Governing
    Law.  This Agreement shall be governed by and
    construed in accordance with the laws of the State of Delaware,
    without reference to the conflict of law provisions thereof.

 

    Section 15.  No
    Third-Party Beneficiaries.  No provision of this
    Agreement is intended to confer upon any person, entity, or
    organization other than the parties hereto any rights or
    remedies hereunder, other than the appraisal rights given to
    holders of Series A Units pursuant to Section 7 of
    this Agreement.

    

 

    IN WITNESS WHEREOF, CCIP/3, the Aimco Subsidiary and
    Aimco OP have caused this Agreement to be signed by their
    respective duly authorized officers as of the date first above
    written.

 

    CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3, LP

    

 

			
	 	    By: 
	
    ConCap Equities, Inc.,

    Its General Partner

	 
	 	    By: 
	
    /s/  Trent
    A. Johnson

    Name:     Trent A. Johnson

			
	 	    Title:     
	
    Vice President and Assistant

    General Counsel

 

    AIMCO CCIP/3 MERGER SUB LLC

    

 

			
	 	    By: 
	
    AIMCO Properties, L.P.,

    Its Sole Member

 

			
	 	    By: 
	
    AIMCO-GP, Inc.,

    Its General Partner

	 
	 	    By: 
	
    /s/  Trent
    A. Johnson

    Name:     Trent A. Johnson

			
	 	    Title: 
	
    Vice President and

    Assistant General Counsel

 

    AIMCO PROPERTIES, L.P.

    

 

			
	 	    By: 
	
    AIMCO-GP, Inc.,

    Its General Partner

	 
	 	    By: 
	
    /s/  Trent
    A. Johnson

    Name:     Trent A. Johnson

			
	 	    Title: 
	
    Vice President and

    Assistant General Counsel

    

     

 

 

    EXHIBIT A

 

    Appraisal
    Rights of Limited Partners

 

    Capitalized terms used but not defined herein shall have the
    respective meanings ascribed thereto in the Agreement and Plan
    of Merger, dated as of July 28, 2011 (the “Merger
    Agreement”), by and among Consolidated Capital
    Institutional Properties/3, LP, a Delaware limited partnership
    (“CCIP/3”), AIMCO CCIP/3 Merger Sub LLC, a
    Delaware limited liability company (the “Aimco
    Subsidiary”), and AIMCO Properties, L.P., a Delaware
    limited partnership (“Aimco OP”). In connection
    with the Merger, limited partners of CCIP/3 shall have the
    following appraisal rights:

 

    (a) Any limited partner who holds Series A Units on
    the effective date of the Merger who has not consented to the
    merger (the “Nonconsenting Limited Partners”)
    and who has otherwise complied with paragraph (b) hereof
    shall be entitled to an appraisal by arbitration of the fair
    value of the Nonconsenting Limited Partner’s Series A
    Units. This arbitration shall be conducted in Denver, Colorado,
    in accordance with the Commercial Arbitration Rules of the
    American Arbitration Association (“AAA”),
    excluding the Procedures for Large, Complex Commercial Disputes,
    by a single arbitrator selected by Aimco OP from a panel of AAA
    arbitrators who are qualified to value investment interests in
    commercial real estate. Any action for judicial review or
    enforcement of the arbitration award shall be brought in a court
    of competent jurisdiction located in Denver, Colorado.

 

    (b) Within 10 days after the effective date of the
    Merger, Aimco OP shall notify each of the Nonconsenting Limited
    Partners of the consummation of the Merger, the effective date
    of the Merger and that appraisal rights are available for any or
    all Series A Units held by Nonconsenting Limited Partners,
    and shall include in such notice a copy of this
    Exhibit A. Such notice shall include an Election
    Form pursuant to which Nonconsenting Limited Partners may elect
    an appraisal by arbitration of the fair value of their
    Series A Units pursuant to paragraph (a) hereof. Any
    limited partner who holds Series A Units on the effective
    date of the Merger and who has not consented to the Merger shall
    be entitled to receive such notice and may, within 30 days
    after the date of mailing of such notice (such 30th day
    being the “Election Deadline”), demand from
    Aimco OP the appraisal of his or her Series A Units by
    making the appropriate election in the Election Form in
    accordance with the instructions thereto. Each completed
    Election Form must be delivered to the address, and within the
    time period, specified in the instructions to the Election Form.
    If a Nonconsenting Limited Partner fails to properly complete an
    Election Form or return it to the correct address within the
    specified time period, such Nonconsenting Limited Partner shall
    be deemed to have elected not to seek an appraisal of his or her
    Series A Units, and will be deemed to have elected the Cash
    Consideration.

 

    (c) At any time prior to the Election Deadline, any
    Nonconsenting Limited Partner who has made a demand for
    appraisal of his or her Series A Units shall have the right
    to withdraw his or her demand for appraisal and to accept the
    Cash Consideration payable pursuant to the Merger Agreement.
    Nonconsenting Limited Partners who wish to withdraw their
    demands must do so in writing delivered to AIMCO Properties,
    L.P.,
    c/o Eagle
    Rock Proxy Advisors, LLC, by mail at 12 Commerce Drive,
    Cranford, New Jersey, 07016, or by fax at
    (908) 497-2349.
    At any time within 20 days after the Election Deadline, any
    Nonconsenting Limited Partner who has complied with the
    requirements of subsections (a) and (b) hereof, upon
    written request, shall be entitled to receive from Aimco OP a
    statement setting forth the aggregate number of Series A
    Units with respect to which Nonconsenting Limited Partners have
    made demands for appraisal and the aggregate number of holders
    of such Series A Units. Such written statement shall be
    mailed to the Nonconsenting Limited Partner within 10 days
    after such Nonconsenting Limited Partner’s written request
    for such a statement is received by Aimco OP or within
    20 days after the Election Deadline, whichever is later.

 

    (d) Upon the submission of any such demand by a
    Nonconsenting Limited Partner, Aimco OP shall, within
    40 days after the Election Deadline, submit to the
    arbitrator a duly verified list containing the names and
    addresses of all Nonconsenting Limited Partners who have
    demanded payment for their Series A Units and with whom
    agreements as to the value of their Series A Units have not
    been reached with Aimco OP. The arbitrator shall give notice of
    the time and place fixed for the hearing of such demand by
    registered or certified mail to Aimco OP and to the
    Nonconsenting Limited Partners shown on the list at the
    addresses therein stated. The forms of the notices shall be
    approved by the arbitrator, and the costs of the preparation and
    mailing thereof shall be borne by Aimco OP.

 

    (e) At the hearing on such demand, the arbitrator shall
    determine as to each of the Nonconsenting Limited Partners
    whether the Nonconsenting Limited Partner is entitled to
    appraisal rights hereunder.

    

     

 

    (f) After determining the Nonconsenting Limited Partners
    entitled to an appraisal, the arbitrator shall appraise the
    Series A Units, determining their fair value, as of the
    date of the Merger, exclusive of any element of value arising
    from the accomplishment or expectation of the Merger, together
    with interest, if any, to be paid upon the amount determined to
    be the fair value. In determining such fair value, the
    arbitrator shall take into account all factors relevant to the
    issue of fair value of the Series A Units, using the legal
    standard of fair value that would apply if the Nonconsenting
    Limited Partner were a stockholder in a corporation entitled to
    appraisal rights as a result of a corporate merger under the
    corporation laws of the state of Delaware. Unless the arbitrator
    in his or her discretion determines otherwise for good cause
    shown, interest from the effective date of the Merger through
    the date of payment of the judgment shall be compounded
    quarterly and shall accrue at 5% over the Federal Reserve
    discount rate (including any surcharge), as established from
    time to time during the period between the effective date of the
    Merger and the date of payment of the judgment. Upon application
    by Aimco OP or by any Nonconsenting Limited Partner entitled to
    participate in the appraisal proceeding, the arbitrator may, in
    his or her discretion, proceed with the appraisal prior to the
    final determination of the Nonconsenting Limited Partners’
    entitlement to appraisal rights hereunder. Any Nonconsenting
    Limited Partner whose name appears on the list submitted by
    Aimco OP pursuant to paragraph (d) hereof may participate
    fully in all proceedings until it is finally determined that
    such Nonconsenting Limited Partner is not entitled to appraisal
    rights hereunder.

 

    (g) The arbitrator shall direct the payment of the fair
    value of the Series A Units (which will be paid only in
    cash), together with interest, if any, by Aimco OP to the
    Nonconsenting Limited Partners entitled thereto. Payment shall
    be so made to each such Nonconsenting Limited Partner upon the
    receipt by Aimco OP of the written consent from such
    Nonconsenting Limited Partner that, for federal income tax
    purposes, the issuance of cash for the Series A Units shall
    be treated as a sale of the Series A Units by the owner and
    a purchase of such Series A Units by Aimco OP for the cash
    consideration so paid under the terms of the Merger Agreement in
    accordance with the guidelines set forth in Treas. Reg.
    Sections 1.708-1(c)(3)
    and 1.708-1(c)(4) and the release described in (i) hereof.

 

    (h) The costs of the proceeding may be determined by the
    arbitrator and taxed upon the parties as the arbitrator deems
    equitable in the circumstances. Upon application of a
    Nonconsenting Limited Partner, the arbitrator may order all or a
    portion of the expenses incurred by any Nonconsenting Limited
    Partner in connection with the appraisal proceeding, including,
    without limitation, reasonable attorney’s fees and the fees
    and expenses of experts, to be charged pro rata against the
    value of all the interests entitled to an appraisal.

 

    (i) Any Nonconsenting Limited Partner who has made a demand
    for appraisal of his or her Series A Units and who has not
    withdrawn the demand before the Election Deadline shall be
    deemed to have entered into a binding contract with Aimco OP to
    accept the fair value awarded by the arbitrator in exchange for
    his or her Series A Units, plus any interest as provided
    herein. The award of fair value, plus any interest, to the
    Nonconsenting Limited Partners shall be exclusive of and in lieu
    of any other right, claim or remedy under state or federal law
    that the Nonconsenting Limited Partner may have with respect to
    his or her Series A Units whether under the Merger
    Agreement or otherwise and whether against CCIP/3, ConCap,
    Aimco-GP, Apartment Investment and Management Company, Aimco OP,
    or any other person or entity, and the Nonconsenting Limited
    Partner shall execute and deliver a release of all other such
    rights, claims and remedies in exchange for payment of the award.

 

    (j) From and after the effective date of the Merger, no
    Nonconsenting Limited Partner who has demanded appraisal rights
    as provided in paragraph (b) hereof shall be entitled to
    vote such Series A Units for any purpose or to receive
    payment of distributions on such interests (except distributions
    payable as of a record date prior to the effective date of the
    Merger); provided, however, that if such
    Nonconsenting Limited Partner shall deliver to AIMCO Properties,
    L.P.,
    c/o Eagle
    Rock Proxy Advisors, LLC, by mail at 12 Commerce Drive,
    Cranford, New Jersey, 07016, or by fax at
    (908) 497-2349,
    a written withdrawal of such Nonconsenting Limited
    Partner’s demand for an appraisal and an acceptance of the
    Cash Consideration payable pursuant to the Merger Agreement,
    either as provided in paragraph (c) hereof or thereafter
    with the written approval of Aimco OP, then the right of such
    Nonconsenting Limited Partner to an appraisal shall cease. The
    appraisal proceeding may also be dismissed as to any
    Nonconsenting Limited Partner with the agreement or consent of
    Aimco OP upon such terms as the two parties may agree. Except as
    provided in the two foregoing sentences, no appraisal proceeding
    before the arbitrator shall be dismissed as to any Nonconsenting
    Limited Partner without the approval of the arbitrator, and such
    approval may be conditioned upon such terms as the arbitrator
    deems just.exv10w1

Exhibit 10.1

AGREEMENT AND PLAN OF MERGER

     AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of July 28, 2011, by and among
CENTURY PROPERTIES FUND XIX, LP, a Delaware limited partnership (“CPF XIX”), CPF XIX MERGER SUB
LLC, a Delaware limited liability company (the “Aimco Subsidiary”), and AIMCO PROPERTIES, L.P., a
Delaware limited partnership (“Aimco OP”).

     WHEREAS, Fox Partners II, the general partner of CPF XIX (“CPF XIX GP”), has determined that
the Merger (as defined below) of the Aimco Subsidiary with and into CPF XIX, with CPF XIX as the
surviving entity, is advisable and in the best interests of CPF XIX and its partners;

     WHEREAS, Aimco OP, the sole member of the Aimco Subsidiary, has determined that the Merger of
the Aimco Subsidiary with and into CPF XIX, with CPF XIX as the surviving entity, is advisable and
in the best interests of the Aimco Subsidiary and its member;

     WHEREAS, the Board of Directors of AIMCO-GP, Inc., the general partner of Aimco OP
(“AIMCO-GP”), has determined that the Merger of the Aimco Subsidiary with and into CPF XIX, with
CPF XIX as the surviving entity, is advisable and in the best interests of Aimco OP and its
partners; and

     WHEREAS, the parties desire to enter this Agreement to evidence the terms, provisions,
representations, warranties, covenants and conditions upon which the Merger will be consummated.

     NOW, THEREFORE, in consideration of the mutual agreements and covenants set forth herein, and
for other good and valuable consideration, the adequacy, sufficiency, and receipt of which are
hereby acknowledged, CPF XIX, the Aimco Subsidiary and Aimco OP hereby agree as follows:

          SECTION 1. The Merger. Subject to the terms and conditions set forth herein, the Aimco
Subsidiary shall be merged with and into CPF XIX (the “Merger”), and CPF XIX shall be the surviving
entity of the Merger (the “Surviving Entity”). The Merger will have the effects specified in this
Agreement, section 17-211 of the Delaware Revised Uniform Limited Partnership Act, as amended (the
“DRULPA”), and section 18-209 of the Delaware Limited Liability Company Act, as amended (the
“DLLCA”).

          SECTION 2. General Partner. CPF XIX GP will be the sole general partner of the Surviving
Entity.

          SECTION 3. Certificate. As soon as practicable after the approval of this Agreement by a
majority in interest of limited partnership interests of CPF XIX, CPF XIX shall cause to be filed a
certificate of merger with respect to the Merger (the “Certificate of Merger”) with the Office of
the Secretary of State of the State of Delaware pursuant to 17-211 of the DRULPA and section 18-209
of the DLLCA. The Merger shall become effective at such time as the Certificate of Merger has been
accepted for record by the Secretary of State of the State of Delaware (the “Effective Time”).

          SECTION 4. Limited Partnership Agreement. The agreement of limited partnership of CPF XIX as
in effect immediately prior to the consummation of the Merger (the “Partnership Agreement”), shall
be the agreement of limited partnership of the Surviving Entity until thereafter amended in
accordance with the provisions thereof and applicable law. The general partner and each limited
partner of the Surviving Entity shall have the rights under, be bound by and be subject to the
terms and conditions of, the Partnership Agreement, as a general partner or limited partner, as
applicable.

          SECTION 5. Treatment of Interests in CPF XIX.

          (a) Limited Partners’ Interests.

               (i) In connection with the Merger and in accordance with the procedures set forth in Section
5(a)(iii) of this Agreement, each limited partnership unit of CPF XIX outstanding immediately prior
to the

 

 

Effective Time and held by limited partners of CPF XIX, except limited partnership units
held by limited partners who have perfected their appraisal rights pursuant to Exhibit A
hereto, shall be converted into the right to receive, at the election of the limited partner,
either (x) $352.02 in cash (the “Cash Consideration”) or (y) a number of partnership common units
of Aimco OP calculated by dividing $352.02 by the average closing price of Apartment Investment and
Management Company common stock, as reported on the NYSE, over the ten consecutive trading days
ending on the second trading day immediately prior to the Effective Time (the “OP Unit
Consideration,” and, together with the Cash Consideration, the “Merger Consideration”).

               (ii) Notwithstanding Section 5(a)(i) of this Agreement, if Aimco OP determines that the law of
the state or other jurisdiction in which a limited partner resides would prohibit the issuance of
partnership common units of Aimco OP in that state or jurisdiction (or that the registration in
that state or other jurisdiction would be prohibitively costly), then such limited partner will
only be entitled to receive the Cash Consideration for each limited partnership unit.

               (iii) Aimco OP shall prepare a form of election (the “Election Form”) describing the Merger
and pursuant to which each limited partner of CPF XIX will have the right to elect to receive
either the Cash Consideration or the OP Unit Consideration (subject to Section 5(a)(ii)). Aimco OP
shall mail or cause to be mailed an Election Form to each limited partner, together with any other
materials that Aimco OP determines to be necessary or prudent, no later than ten (10) days after
the Effective Time. An election to receive the Cash Consideration or the OP Unit Consideration
shall be effective only if a properly executed Election Form is received by Aimco OP or its
designees prior to 5:00 p.m., Eastern Time on the day that is thirty (30) days after the mailing of
such Election Form by Aimco OP. If a limited partner fails to return a duly completed Election
Form within the time period specified in the Election Form, such holder shall be deemed to have
elected to receive the Cash Consideration. In addition, each limited partner that resides in a
state or other jurisdiction that Aimco OP determines would prohibit the issuance of partnership
common units of Aimco OP (or in which registration or qualification would be prohibitively costly)
will be deemed to have elected the Cash Consideration. CPF XIX, the Aimco Subsidiary and Aimco OP
agree that limited partners shall have the right to revoke any election made in connection with the
Merger at any time prior to the expiration of the time period stated in the Election Form. Aimco
OP and CPF XIX GP, by mutual agreement, shall have the right to make rules, not inconsistent with
the terms of this Agreement, governing the validity of Election Forms and the issuance and delivery
of the Merger Consideration, as applicable.

          (b) General Partner’s Interests. Each general partnership unit of CPF XIX outstanding
immediately prior to consummation of the Merger shall remain outstanding and unchanged, with all of
the rights set forth in the Partnership Agreement.

          SECTION 6. Treatment of Interests in Aimco Subsidiary. The entire membership interest in the
Aimco Subsidiary immediately prior to the Effective Time shall be converted into 1,000 limited
partnership units of the Surviving Entity.

          SECTION 7. Appraisal Rights. In connection with the Merger, the holders of limited
partnership units of CPF XIX immediately prior to the Merger shall have the appraisal rights set
forth in Exhibit A hereto.

          SECTION 8. Covenants. Aimco OP agrees to pay for, or reimburse CPF XIX for, all expenses
incurred by CPF XIX in connection with the Merger. Aimco OP agrees to pay cash or issue and
deliver common units of Aimco OP to the former holders of CPF XIX limited partnership units, in
accordance with section 5(a) of this Agreement.

          SECTION 9. Conditions to the Merger.

     (a) The Merger shall not occur unless and until the Merger has been approved or
consented to by a majority in interest of limited partners of CPF XIX.

2

 

          (b) Notwithstanding any provisions of this Agreement to the contrary, none of the
parties hereto shall be required to consummate the transactions contemplated hereby if any
third-party consent, authorization or approval that any of the parties hereto deem necessary
or desirable in connection with this Agreement, or the consummation of the transactions
contemplated hereby, has not been obtained or received.

          SECTION 10. Tax Treatment. The parties hereto intend and agree that, for Federal income tax
purposes, (i) any payment of cash for limited partnership units of CPF XIX shall be treated as a
sale of such limited partnership units by such holder and a purchase of such limited partnership
units by Aimco OP for the cash so paid under the terms of this Agreement in accordance with the
guidelines set forth in Treas. Reg. Sections 1.708-1(c)(3) and 1.708-1(c)(4), and (ii) each such
holder of limited partnership units who accepts cash explicitly agrees and consents to such
treatment. Furthermore, the parties hereto intend and agree that, for Federal income tax purposes,
(i) any exchange of limited partnership units of CPF XIX for partnership common units of Aimco OP
under the terms of this Agreement shall be treated in accordance with Sections 721 and 731 of the
Internal Revenue Code of 1986, as amended, and (ii) each such holder of limited partnership units
of CPF XIX who accepts partnership common units of Aimco OP explicitly agrees and consents to such
treatment. Any cash and/or partnership common units of Aimco OP to which a holder of limited
partnership units of CPF XIX is entitled pursuant to this Agreement shall be paid only after the
receipt of a consent from such holder that, for Federal income tax purposes, the receipt of cash
and/or partnership common units of Aimco OP shall be treated as described in this Section 10.

          SECTION 11. Further Assurances. From time to time, as and when required by the Surviving
Entity or by its successors and assigns, there shall be executed and delivered on behalf of the
Aimco Subsidiary such deeds and other instruments, and there shall be taken or caused to be taken
by the Aimco Subsidiary all such further actions, as shall be appropriate or necessary in order to
vest, perfect or confirm, of record or otherwise, in the Surviving Entity the title to and
possession of all property, interests, assets, rights, privileges, immunities, powers, franchises
and authority of the Aimco Subsidiary, and otherwise to carry out the purposes of this Agreement,
and the officers and directors of CPF XIX GP are fully authorized in the name and on behalf of
Aimco Subsidiary or otherwise to take any and all such action and to execute and deliver any and
all such deeds and other instruments.

          SECTION 12. Amendment. Subject to applicable law, this Agreement may be amended, modified or
supplemented by written agreement of the parties hereto at any time prior to the consummation of
the Merger with respect to any of the terms contained herein.

          SECTION 13. Abandonment. At any time prior to consummation of the Merger, this Agreement may
be terminated and the Merger may be abandoned without liability to any party hereto by any of the
Aimco Subsidiary, Aimco OP or CPF XIX, in each case, acting in its sole discretion and for any
reason or for no reason, notwithstanding approval of this Agreement by any of the members of the
Aimco Subsidiary, the partners of CPF XIX or the general partner of Aimco OP.

          SECTION 14. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, without reference to the conflict of law provisions
thereof.

          SECTION 15. No Third-Party Beneficiaries. No provision of this Agreement is intended to
confer upon any person, entity, or organization other than the parties hereto any rights or
remedies hereunder, other than the appraisal rights given to holders of limited partnership units
of CPF XIX pursuant to Section 7 of this Agreement.

[Signatures appear on following page.]

3

 

          IN WITNESS WHEREOF, CPF XIX, the Aimco Subsidiary and Aimco OP have caused this Agreement to
be signed by their respective duly authorized officers as of the date first above written.

	 	 	 	 	 
	 	CENTURY PROPERTIES FUND XIX, LP

 	 
	 	By:  	Fox Partners II,
 	 
	 	 	its General Partner 	 
	 	 	 	 
	 	By:  	                  Fox Capital Management Corporation,
 	 
	 	 	its Managing General Partner 	 
	 	 	 	 
	 	By:  	         /s/ Trent A. Johnson
 	 
	 	 	Name:  	Trent A. Johnson 	 
	 	 	Title:  	Vice President and Assistant General Counsel 	 

	 	 	 	 	 
	 	AIMCO CPF XIX MERGER SUB LLC

 	 
	 	By:  	Aimco Properties, L.P.,
 	 
	 	 	its sole Member 	 
	 	 	 	 
	 	By:  	                        AIMCO-GP, Inc.
 	 
	 	 	its General Partner 	 
	 	 	 	 
	 	By:  	         /s/ Trent A. Johnson
 	 
	 	 	Name:  	Trent A. Johnson 	 
	 	 	Title:  	Vice President and Assistant General Counsel 	 

	 	 	 	 	 
	 	AIMCO PROPERTIES, L.P.

 	 
	 	By:  	

AIMCO-GP, Inc.,
 	 
	 	 	its General Partner 	 
	 	 	 	 
	 	By:  	         /s/ Trent A. Johnson
 	 
	 	 	Name:  	Trent A. Johnson 	 
	 	 	Title:  	Vice President and Assistant General Counsel 	 

4

 

	 	 	 	 	 

EXHIBIT A

Appraisal Rights of Limited Partners

     Capitalized terms used but not defined herein shall have the respective meanings ascribed
thereto in the Agreement and Plan of Merger, dated as of July 28, 2011 (the “Merger Agreement”), by
and among Century Properties Fund XIX, a Delaware limited partnership (“CPF XIX”), AIMCO CPF XIX
Merger Sub LLC, a Delaware limited liability company (the “Aimco Subsidiary”), and AIMCO
Properties, L.P., a Delaware limited partnership (“Aimco OP”). In connection with the Merger,
limited partners of CPF XIX shall have the following appraisal rights:

     (a) Any limited partner who holds limited partnership units on the effective date of the
Merger who has not consented to the merger (the “Nonconsenting Limited Partners”) and who has
otherwise complied with paragraph (b) hereof shall be entitled to an appraisal by arbitration of
the fair value of the Nonconsenting Limited Partner’s limited partnership units. This arbitration
shall be conducted in Denver, Colorado, in accordance with the Commercial Arbitration Rules of the
American Arbitration Association (“AAA”), excluding the Procedures for Large, Complex Commercial
Disputes, by a single arbitrator selected by Aimco OP from a panel of AAA arbitrators who are
qualified to value investment interests in commercial real estate. Any action for judicial review
or enforcement of the arbitration award shall be brought in a court of competent jurisdiction
located in Denver, Colorado.

     (b) Within 10 days after the effective date of the Merger, Aimco OP shall notify each of the
Nonconsenting Limited Partners of the consummation of the Merger, the effective date of the Merger
and that appraisal rights are available for any or all limited partnership units held by
Nonconsenting Limited Partners, and shall include in such notice a copy of this Exhibit A. Such
notice shall include an Election Form pursuant to which Nonconsenting Limited Partners may elect an
appraisal by arbitration of the fair value of their limited partnership units pursuant to paragraph
(a) hereof. Any limited partner who holds limited partnership units on the effective date of the
Merger and who has not consented to the Merger shall be entitled to receive such notice and may,
within 30 days after the date of mailing of such notice (such 30th day being the
“Election Deadline”), demand from Aimco OP the appraisal of his or her limited partnership units by
making the appropriate election in the Election Form in accordance with the instructions thereto.
Each completed Election Form must be delivered to the address, and within the time period,
specified in the instructions to the Election Form. If a Nonconsenting Limited Partner fails to
properly complete an Election Form or return it to the correct address within the specified time
period, such Nonconsenting Limited Partner shall be deemed to have elected not to seek an appraisal
of his or her limited partnership units, and will be deemed to have elected the Cash Consideration.

     (c) At any time prior to the Election Deadline, any Nonconsenting Limited Partner who has made
a demand for appraisal of his or her limited partnership units shall have the right to withdraw his
or her demand for appraisal and to accept the Cash Consideration payable pursuant to the Merger
Agreement. Nonconsenting Limited Partners who wish to withdraw their demands must do so in writing
delivered to Aimco Properties, L.P., c/o Eagle Rock Proxy Advisors, LLC, by mail at 12 Commerce
Drive, Cranford, New Jersey, 07016, or by fax at (908) 497-2349. At any time within 20 days after
the Election Deadline, any Nonconsenting Limited Partner who has complied with the requirements of
subsections (a) and (b) hereof, upon written request, shall be entitled to receive from Aimco OP a
statement setting forth the aggregate number of limited partnership units with respect to which
Nonconsenting Limited Partners have made demands for appraisal and the aggregate number of holders
of such limited partnership units. Such written statement shall be mailed to the Nonconsenting
Limited Partner within 10 days after such Nonconsenting Limited Partner’s written request for such
a statement is received by Aimco OP or within 20 days after the Election Deadline, whichever is
later.

     (d) Upon the submission of any such demand by a Nonconsenting Limited Partner, Aimco OP shall,
within 40 days after the Election Deadline, submit to the arbitrator a duly verified list
containing the names and addresses of all Nonconsenting Limited Partners who have demanded payment
for their limited partnership units and with whom agreements as to the value of their limited
partnership units have not been reached with Aimco OP. The arbitrator shall give notice of the time
and place fixed for the hearing of such demand by registered or certified mail to Aimco OP and to
the Nonconsenting Limited Partners shown on the list at the addresses therein stated. The forms

 

 

of the notices shall be approved by the arbitrator, and the costs of the preparation and
mailing thereof shall be borne by Aimco OP.

     (e) At the hearing on such demand, the arbitrator shall determine as to each of the
Nonconsenting Limited Partners whether the Nonconsenting Limited Partner is entitled to appraisal
rights hereunder.

     (f) After determining the Nonconsenting Limited Partners entitled to an appraisal, the
arbitrator shall appraise the limited partners Units, determining their fair value, as of the date
of the Merger, exclusive of any element of value arising from the accomplishment or expectation of
the Merger, together with interest, if any, to be paid upon the amount determined to be the fair
value. In determining such fair value, the arbitrator shall take into account all factors relevant
to the issue of fair value of the limited partnership Units, using the legal standard of fair value
that would apply if the Nonconsenting Limited Partner were a stockholder in a corporation entitled
to appraisal rights as a result of a corporate merger under the corporation laws of the state of
Delaware. Unless the arbitrator in his or her discretion determines otherwise for good cause
shown, interest from the effective date of the Merger through the date of payment of the judgment
shall be compounded quarterly and shall accrue at 5% over the Federal Reserve discount rate
(including any surcharge), as established from time to time during the period between the effective
date of the Merger and the date of payment of the judgment. Upon application by Aimco OP or by any
Nonconsenting Limited Partner entitled to participate in the appraisal proceeding, the arbitrator
may, in his or her discretion, proceed with the appraisal prior to the final determination of the
Nonconsenting Limited Partners’ entitlement to appraisal rights hereunder. Any Nonconsenting
Limited Partner whose name appears on the list submitted by Aimco OP pursuant to paragraph (d)
hereof may participate fully in all proceedings until it is finally determined that such
Nonconsenting Limited Partner is not entitled to appraisal rights hereunder.

     (g) The arbitrator shall direct the payment of the fair value of the limited partnership Units
(which will be paid only in cash), together with interest, if any, by Aimco OP to the Nonconsenting
Limited Partners entitled thereto. Payment shall be so made to each such Nonconsenting Limited
Partner upon the receipt by Aimco OP of the written consent from such Nonconsenting Limited Partner
that, for federal income tax purposes, the issuance of cash for the limited partnership Units shall
be treated as a sale of the limited partnership Units by the owner and a purchase of such limited
partnership Units by Aimco OP for the cash consideration so paid under the terms of the Merger
Agreement in accordance with the guidelines set forth in Treas. Reg. Sections 1.708-1(c)(3) and
1.708-1(c)(4) and the release described in (i) hereof.

     (h) The costs of the proceeding may be determined by the arbitrator and taxed upon the parties
as the arbitrator deems equitable in the circumstances. Upon application of a Nonconsenting Limited
Partner, the arbitrator may order all or a portion of the expenses incurred by any Nonconsenting
Limited Partner in connection with the appraisal proceeding, including, without limitation,
reasonable attorney’s fees and the fees and expenses of experts, to be charged pro rata against the
value of all the interests entitled to an appraisal.

     (i) Any Nonconsenting Limited Partner who has made a demand for appraisal of his or her
limited partnership Units and who has not withdrawn the demand before the Election Deadline shall
be deemed to have entered into a binding contract with Aimco OP to accept the fair value awarded by
the arbitrator in exchange for his or her limited partnership Units, plus any interest as provided
herein. The award of fair value, plus any interest, to the Nonconsenting Limited Partners shall be
exclusive of and in lieu of any other right, claim or remedy under state or federal law that the
Nonconsenting Limited Partner may have with respect to his or her limited partnership Units whether
under the Merger Agreement or otherwise and whether against CPF XIX, CPF XIX GP, Aimco-GP,
Apartment Investment and Management Company, Aimco OP, or any other person or entity, and the
Nonconsenting Limited Partner shall execute and deliver a release of all other such rights, claims
and remedies in exchange for payment of the award.

     (j) From and after the effective date of the Merger, no Nonconsenting Limited Partner who has
demanded appraisal rights as provided in paragraph (b) hereof shall be entitled to vote such
limited partnership Units for any purpose or to receive payment of distributions on such interests
(except distributions payable as of a record date prior to the effective date of the Merger);
provided, however, that if such Nonconsenting Limited Partner shall deliver to
Aimco Properties, L.P., c/o Eagle Rock Proxy Advisors, LLC, by mail at 12 Commerce Drive, Cranford,
New Jersey, 07016, or by fax at (908) 497-2349, a written withdrawal of such Nonconsenting Limited
Partner’s demand for an appraisal and an acceptance of the Cash Consideration payable pursuant to
the Merger Agreement,

 

 

either as provided in paragraph (c) hereof or thereafter with the written approval of Aimco
OP, then the right of such Nonconsenting Limited Partner to an appraisal shall cease. The
appraisal proceeding may also be dismissed as to any Nonconsenting Limited Partner with the
agreement or consent of Aimco OP upon such terms as the two parties may agree. Except as provided
in the two foregoing sentences, no appraisal proceeding before the arbitrator shall be dismissed as
to any Nonconsenting Limited Partner without the approval of the arbitrator, and such approval may
be conditioned upon such terms as the arbitrator deems just.

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