Document:

exv10w1

Exhibit 10.1

ADVISORY AGREEMENT

     THIS ADVISORY AGREEMENT dated as of February 25, 2011 (the “Effective Date”) is between
Apartment Trust of America, Inc., a Maryland corporation (the “Company”), Apartment Trust of
America Holdings, LP, a Virginia limited partnership (the “Partnership”), and ROC REIT Advisors,
LLC, a Virginia limited liability company (the “Advisor”).

WITNESSETH:

     WHEREAS , the Company qualifies as a real estate investment trust (a “REIT”) as defined in
Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), and intends
to make investments of the type permitted to qualified REITs under the Code and not inconsistent
with the Charter of the Company (the “Charter”) and the Bylaws of the Company; and

     WHEREAS, the Company desires to avail itself of the experience, sources of information, advice
and assistance of the Advisor and to have the Advisor undertake the duties and responsibilities
hereinafter set forth, on behalf of and subject to the supervision of the Board of Directors of the
Company (the “Board of Directors”), as provided herein; and

     WHEREAS, the Advisor is willing to render such services, subject to the supervision of the
Board of Directors of the Company, on the terms and subject to the conditions hereinafter set
forth;

     NOW, THEREFORE , in consideration of the foregoing and of the mutual covenants and agreements
herein set forth, the parties hereto, intending to be legally bound, hereby agree as follows:

1. DEFINITIONS.

     As used herein, the following terms shall have the meanings set forth below:

     (a) “Acquisition Expenses” shall mean any and all expenses related to the Company’s selection,
evaluation and acquisition of, and investment in Real Estate Assets or Real Estate-Related
Securities, whether or not acquired or made, including, but not limited to, legal fees and
expenses, travel and communications expenses, cost of appraisals and surveys, nonrefundable option
payments on Real Estate Assets or Real Estate-Related Securities not acquired, accounting fees and
expenses, computer use related expenses, architectural, engineering and other property reports,
environmental and asbestos audits, title insurance and escrow fees, loan fees or points or any fee
of a similar nature paid to a third party, however designated, transfer taxes, and personnel and
miscellaneous expenses related to the selection, evaluation and acquisition of Real Estate Assets
or Real Estate-Related Securities.

     (b) “Acquisition Fee” shall mean any and all fees and commissions, exclusive of Acquisition
Expenses, paid by any Person to any other Person (including any fees or commissions paid by or to
any Affiliate of the Company or the Advisor) in connection with the purchase, development or
construction of any Property. Included in the computation of such fees or commissions shall be any
real estate commissions, acquisition fees, finder’s fees, selection fees, development fees,
construction fees, nonrecurring management fees, loan fees, points, or any other fees or
commissions of a similar nature. Excluded shall be development fees and construction fees paid to
Persons not Affiliated with the Advisor in connection with the actual development and construction
of a Property.

 

 

     (c) “Advisor” shall mean ROC REIT Advisors, LLC, a Delaware limited liability company, any
successor advisor to the Company, the Partnership or any person or entity to which ROC REIT
Advisors, LLC or any successor advisor subcontracts substantially all of its functions.

     (d) “Affiliate” shall mean: (i) any Person directly or indirectly owning, controlling or
holding, with the power to vote 10.0% or more of the outstanding voting securities of such other
Person; (ii) any Person 10.0% or more of whose outstanding voting securities are directly or
indirectly owned, controlled or held, with the power to vote, by such other Person; (iii) any
Person directly or indirectly controlling, controlled by or under common control with such other
Person; (iv) any executive officer, director, trustee or general partner of such other Person; and
(v) any legal entity for which such Person acts as an executive officer, director, trustee or
general partner.

     (e) “Asset Management Fee” shall mean an annual amount equal to the percentage of the
Company’s Average Invested Assets set forth in Section 9(b).

     (f) “Average Invested Assets” shall mean, for any period, the average of the aggregate Book
Value of the assets of the Company invested, directly or indirectly, in Real Estate Assets and Real
Estate-Related Securities, before deducting depreciation, amortization, bad debts or other similar
non-cash reserves, computed by taking the average of such values at the end of each month during
such period; provided, however, that after the Board of Directors publicly announces an estimated
per share value of the Shares, “Average Invested Assets” will be calculated based upon the
aggregate valuation of the assets of the Company as reasonably determined by the Board of
Directors.

     (g) “Book Value” of an asset shall mean the value of such asset on the books of the Company,
before allowance for depreciation or amortization.

     (h) “Change of Control” shall mean any event (including, without limitation, issue, transfer
or other disposition of Shares of capital stock of the Company or equity interests in the
Partnership, merger, share exchange or consolidation) after which any “person” (as that term is
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes
the “beneficial owner” (as defined in Rule 13d-j of the Securities Exchange Act of 1934, as
amended), directly or indirectly, of securities of the Company or the Partnership representing
50.0% or more of the combined voting power of the Company’s or the Partnership’s then outstanding
securities, respectively; provided, that, a Change of Control shall not be deemed to occur as a
result of any widely distributed public offering of the Shares.

     (i) “Common Stock” shall mean the common stock, par value $.01 per share, of the Company.

     (j) “Company” shall have the meaning set forth in the preamble of this Agreement.

     (k) “Competitive Real Estate Commission” shall mean the real estate or brokerage commission
paid for the purchase or sale of a property which is reasonable, customary and competitive in light
of the size, type and location of such property.

     (l) “Contract Purchase Price” shall mean the amount actually paid or allocated to the purchase
or improvement of Real Estate Assets, exclusive of Acquisition Fees and Acquisition Expenses.

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     (m) “Contract Sales Price” shall mean the amount actually paid or allocated to the Sale of a
Property or Properties, exclusive of Property Disposition Fees.

     (n) “Cumulative Return” shall mean a cumulative, non-compounded return equal to 8.0% per annum
on Invested Capital commencing upon acceptance by the Company of an investor’s subscription.

     (o) “Director” shall mean a member of the Board of Directors of the Company.

     (p) “Effective Date” shall have the meaning set forth in the preamble of this Agreement.

     (q) “Financing Coordination Fee” shall have the meaning set forth in Section 9(f).

     (r) “Fiscal Year” shall mean any period for which any income tax return is submitted by the
Company to the Internal Revenue Service and which is treated by the Internal Revenue Service as a
reporting period.

     (s) “GAAP” means accounting principles generally accepted in the United States of America.

     (t) “Independent Directors” shall mean a Director who is not, and within the last two (2)
years has not been, directly or indirectly associated with a Sponsor or the Advisor by virtue of
(i) ownership of an interest in a Sponsor, the Advisor or their Affiliates, (ii) employment by a
Sponsor, the Advisor or their Affiliates, (iii) service as an officer or director of a Sponsor, the
Advisor or their Affiliates, (iv) performance of services, other than as a Director, for the
Company, (v) service as a director or trustee of more than three (3) real estate investment trusts
organized by a Sponsor or advised by the Advisor, or (vi) maintenance of a material business or
professional relationship with a Sponsor, the Advisor or any of their Affiliates. An indirect
relationship shall include circumstances in which a Director’s spouse, parents, children, siblings,
mothers- or fathers-in-law, sons- or daughters-in-law or brothers- or sisters-in-law is or has been
associated with a Sponsor, the Advisor, any of their Affiliates or the Company. A business or
professional relationship is considered material if the gross revenue derived by the Director from
a Sponsor, the Advisor and Affiliates exceeds five percent (5.0%) of either the Director’s annual
gross revenue during either of the last two (2) years or the Director’s net worth on a fair market
value basis.

     (u) “Invested Capital” shall mean the total gross proceeds from the sale of Shares before
deductions for selling commissions and dealer manager fees, less any amounts paid by the Company to
repurchase Shares pursuant to the Company’s plan for the repurchase of Shares. When a Property is
sold, Invested Capital shall be reduced by the lesser of (i) the Net Sale Proceeds available for
distribution from such sale or (ii) the sum of (A) the portion of Invested Capital that initially
was allocated to that Property and (B) any remaining shortfall in the recovery of Invested Capital
with respect to prior sales of Properties.

     (v) “Joint Venture” shall mean any partnership, limited liability company, business trust or
other unincorporated organization through or by means of which the Company acts jointly with any
Person or Affiliate to make an investment in Real Estate Assets or Real Estate-Related Securities.

     (w) “Listing” shall mean the listing of the Shares on (i) the New York Stock Exchange, the
American Stock Exchange, or the National Market System of the Nasdaq Stock Market (or any successor
to such entities), or (ii) a national securities exchange (or tier or segment thereof) that has

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listing standards that the Securities and Exchange Commission has determined by rule are
substantially similar to the listing standards applicable to securities described in Section
18(b)(1)(A) of the Securities Act of 1933, as amended. Upon such Listing, the Shares shall be
deemed Listed.

     (x) “Market Value” shall mean, upon Listing, the market value of the outstanding Shares,
measured by taking the average closing price for a single Share over a period of 30 consecutive
trading days, with such period beginning 180 days after Listing, multiplying that number by the
number of Shares outstanding on the date of measurement.

     (y) “Net Income” shall mean, for any period, total revenues applicable to such period, less
the operating expenses applicable to such period other than additions to or allowances for reserves
for depreciation, amortization or bad debts or other similar noncash reserves; provided, however,
that Net Income shall not include any gain from the sale of the Company’s assets.

     (z) “Net Sale Proceeds” shall mean, in the case of a transaction described in clause (A) of
the definition of Sale, the proceeds of any such transaction less the amount of selling expenses
incurred by or on behalf of the Company, including all real estate commissions, closing costs and
legal fees and expenses. In the case of a transaction described in clause (B) of such definition,
Net Sales Proceeds means the proceeds of any such transaction less the amount of selling expenses
incurred by or on behalf of the Company, including any legal fees and expenses and other selling
expenses incurred in connection with such transaction. In the case of a transaction described in
clause (C) of such definition, Net Sales Proceeds means the proceeds of any such transaction
actually distributed to the Company from the Joint Venture less the amount of any selling expenses,
including legal fees and expenses incurred by or on behalf of the Company (other than those paid by
the Joint Venture). In the case of a transaction or series of transactions described in clause (D)
of the definition of Sale, Net Sales Proceeds means the proceeds of any such transaction (including
the aggregate of all payments under a Mortgage or in satisfaction thereof other than regularly
scheduled interest payments) less the amount of selling expenses incurred by or on behalf of the
Company, including all commissions, closing costs and legal fees and expenses. In the case of a
transaction described in clause (E) of such definition, Net Sales Proceeds means the proceeds of
any such transaction less the amount of selling expenses incurred by or on behalf of the Company,
including any legal fees and expenses and other selling expenses incurred in connection with such
transaction. In the case of a transaction described in the last sentence of the definition of Sale,
Net Sales Proceeds means the proceeds of such transaction or series of transactions less all
amounts generated thereby which are reinvested in one or more Assets within 180 days thereafter and
less the amount of any real estate commissions, closing costs, and legal fees and expenses and
other selling expenses incurred by or allocated to the Company in connection with such transaction
or series of transactions. Net Sales Proceeds shall also include any consideration (including
non-cash consideration such as stock, notes, or other property or securities) that the Company
determines, in its discretion, to be economically equivalent to proceeds of a Sale, valued in the
reasonable determination of the Company. Net Sales Proceeds shall not include any reserves
established by the Company in its sole discretion.

     (aa) “Offering” shall mean any public offering and sale of Shares pursuant to an effective
registration statement filed under the Securities Act of 1933, as amended, other than a public
offering of Shares under a distribution reinvestment plan and Shares offered under any employee
benefit plan.

     (bb) “Organizational and Offering Expenses” shall mean those expenses incurred by and to be
paid from the assets of the Company in connection with and in preparing the Company for
registration and subsequently offering and distributing Shares to the public, including, but not
limited to, total

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underwriting and brokerage discounts and commissions (including fees of the underwriters’
attorneys), expenses for printing, engraving and mailing, salaries of employees while engaged in
sales activities, charges of transfer agents, registrars, trustees, escrow holders, depositaries
and experts, expenses of qualification of the sale of the securities under federal and state laws,
including taxes and fees, and accountants’, consultants’ and attorneys’ fees and expenses.

     (cc) “Partnership” shall mean Apartment Trust of America Holdings, LP, a Virginia limited
partnership.

     (dd) “Person” shall mean any natural person, partnership, corporation, association, trust,
limited liability company or other legal entity.

     (ee) “Property” or “Properties” shall mean any, or all, respectively, of the real property and
improvements thereon owned or to be owned by the Company, directly or indirectly.

     (ff) “Property Disposition Fee” shall mean a real estate disposition fee, payable (under
certain conditions) to the Advisor and its Affiliates upon the sale of the Company’s Property as
described in Section 9(d).

     (gg) “Property Manager” shall mean any entity that provides property rental, leasing,
operation and management services to the Properties owned by the Company, directly or indirectly.

     (hh) “Prospectus” shall mean the final prospectus of the Company in connection with the
registration of Shares filed with the Securities and Exchange Commission on Form S-11, as
supplemented and amended from time to time.

     (ii) “Real Estate Assets” shall mean any and all investments in: (i) Property whether directly
or indirectly through owned or controlled subsidiaries and including amounts invested in Joint
Ventures; and (ii) loans, or other evidence of indebtedness secured, directly or indirectly, by
interests in Property.

     (jj) “Real Estate-Related Securities” shall mean any real estate-related securities
investments transferred or conveyed to the Company or the Partnership, either directly or
indirectly, or such investments the Board of Directors and the Advisor mutually designate as Real
Estate-Related Securities to the extent such investments could be classified as either Real
Estate-Related Securities or Properties.

     (kk) “Sale” or “Sales” shall mean any transaction or series of transactions whereby: (A) the
Company or the Partnership directly or indirectly (except as described in other subsections of this
definition) sells, grants, transfers, conveys or relinquishes its ownership of any Property or
portion thereof, including the lease of any Property consisting of a building only, and including
any event with respect to any Property which results in the payment to the Company or the
Partnership, directly or indirectly, of a significant amount of insurance proceeds or condemnation
or similar award related to a Property; (B) the Company or the Partnership directly or indirectly
(except as described in other subsections of this definition) sells, grants, transfers, conveys or
relinquishes its ownership of all or substantially all of the interests of the Company or the
Partnership in any Joint Venture in which it is a co-venturer or partner; (C) any Joint Venture
directly or indirectly (except as described in other subsections of this definition) in which the
Company or the Partnership as a co-venturer or partner sells, grants, transfers, conveys or
relinquishes its ownership of any Property or portion thereof, including any event with respect to
any Property which results in the payment to the Joint Venture, directly or indirectly, of a
significant amount of insurance proceeds or condemnation or similar award related to a

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Property; or (D) the Company or the Partnership directly or indirectly (except as described in
other subsections of this definition) sells, grants, conveys or relinquishes its interest in any
loan or mortgage or any portion thereof (including with respect to any mortgage or loan, all
payments thereunder or in satisfaction thereof other than regularly scheduled interest payments) of
amounts owed pursuant to such loan or mortgage and any event which gives rise to the payment of a
significant amount of insurance proceeds or condemnation or similar award; or (E) the Company or
the Partnership directly or indirectly (except as described in other subsections of this
definition) sells, grants, transfers, conveys or relinquishes its ownership of any other Real
Estate Asset or Real Estate-Related Security not previously described in this definition or any
portion thereof.

     (ll) “Shares” shall mean the shares of Common Stock of the Company.

     (mm) “Sponsor” shall mean any Person directly or indirectly instrumental in organizing, wholly
or in part, the Company or any Person who will control, manage or participate in the management of
the Company, and any Affiliate of such Person. Not included is any Person whose only relationship
with the Company is that of an independent property manager of Company assets, and whose only
compensation is as such. Sponsor does not include wholly independent third parties such as
attorneys, consultants, accountants and underwriters whose only compensation is for professional
services. A Person also may be deemed a Sponsor of the Company by:

	 	(i)	 	taking the initiative, directly or indirectly, in founding or
organizing the business or enterprise of the Company, either alone or in
conjunction with one or more other Persons;
	 
	 	(ii)	 	receiving a material participation in the Company in connection
with the founding or organizing of the business of the Company, in consideration
of services or property, or both services and property;
	 
	 	(iii)	 	having a substantial number of relationships and contacts with
the Company;
	 
	 	(iv)	 	possessing significant rights to control Company properties;
	 
	 	(v)	 	receiving fees for providing services to the Company which are
paid on a basis that is not customary in the industry; or
	 
	 	(vi)	 	providing goods or services to the Company on a basis which was
not negotiated at arms length with the Company.

     (nn) “Stockholders” shall mean holders of the Shares.

     (oo) “Subordinated Performance Fee” shall mean the fee payable to the Advisor under certain
circumstances as described in Section 9(e).

     (pp) “Total Operating Expenses” shall mean the aggregate expenses of every character paid or
incurred by the Company as determined under generally accepted accounting principles, including
fees paid to the Advisor, but excluding:

	 	(i)	 	the expenses of raising capital such as Organizational and
Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing,
registration and other fees, printing and other such expenses, and taxes
incurred in connection with the issuance, distribution, transfer, registration
and Listing of the Shares;

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	 	(ii)	 	interest payments;
	 
	 	(iii)	 	taxes;
	 
	 	(iv)	 	non-cash expenditures such as depreciation, amortization and bad debt reserves;
	 
	 	(v)	 	the Subordinated Performance Fee; and
	 
	 	(vi)	 	Acquisition Expenses, real estate commissions on resale of
property and other expenses connected with the acquisition, disposition (whether
by sale, exchange or condemnation) and ownership of real estate interests,
mortgage loans or other property (such as the costs of foreclosure, insurance
premiums, legal services, maintenance, repair and improvement of property).

2. DUTIES OF ADVISOR.

     The Advisor shall consult with the Company and shall, at the request of the Board of Directors
or the officers of the Company, furnish advice and recommendations with respect to all aspects of
the business and affairs of the Company. In general, the Advisor shall inform the Board of
Directors of factors that come to its attention which could influence the policies of the Company.
Subject to the supervision of the Board of Directors and consistent with the provisions of the
Charter, the Advisor undertakes to use its commercially reasonable efforts to:

     (a) Present to the Company a continuing and suitable investment program and opportunities to
make investments consistent with the investment policies of the Company and the investment program
adopted by the Board of Directors and in effect at the time and furnish the Company with advice
with respect to the making, acquisition, holding and disposition of investments and commitments
therefor. The Advisor is also obligated to provide the Company with the first opportunity to
purchase any Class A income producing multi-family property which satisfies the Company’s
investment objectives placed under contract by the Advisor or its Affiliates. If the Board of
Directors of the Company does not vote to make such purchase within seven (7) days of being offered
such property, the Advisor is free to offer such opportunity to any other Affiliates or
non-Affiliates, as it so chooses. The Advisor shall use commercially reasonable efforts to identify
potential investment opportunities consistent with the Company’s investment objectives and policies
including but not limited to:

	 	(i)	 	locating, analyzing and selecting potential investments in Real
Estate Assets;
	 
	 	(ii)	 	structuring and negotiating the terms and conditions of
acquisition and disposition transactions;
	 
	 	(iii)	 	arranging for financing and refinancing and making other changes
in the asset or capital structure of the Company and disposing of and
reinvesting the proceeds from the sale of, or otherwise deal with the
investments in, Real Estate Assets; and
	 
	 	(iv)	 	entering into leases and service contracts, on the Company’s
behalf, for Real Estate Assets and, to the extent necessary, performing all
functions necessary to maintain and administer the Company’s assets.

     (b) Manage the Company’s day-to-day operations to effect the investment program adopted by the
Board of Directors and perform or supervise the performance of such other administrative

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functions necessary in connection with the management of the Company as may be agreed upon by
the Advisor and the Company;

     (c) Serve as the Company’s investment advisor in connection with policy decisions to be made
by the Board of Directors and, as requested, furnish reports to the Board of Directors and provide
research, economic and statistical data in connection with the Company’s investments and investment
policies;

     (d) On behalf of the Company, investigate, select and conduct relations with lenders,
consultants, accountants, brokers, property managers, attorneys, underwriters, appraisers,
insurers, corporate fiduciaries, banks, builders and developers, sellers and buyers of investments
and persons acting in any other capacity specified by the Company from time to time, and enter into
contracts with, retain and supervise services performed by such parties in connection with
investments which have been or may be acquired or disposed of by the Company;

     (e) [Reserved];

     (f) Conduct periodic on-site property visits to some or all (as the Advisor deems reasonably
necessary) of the Properties to inspect the physical condition of the Properties and to evaluate
the performance of the Property Manager;

     (g) Review, analyze and comment on the operating budgets, capital budgets and leasing plans
prepared and submitted by the Property Manager and aggregate these property budgets into the
Company’s overall budget;

     (h) Review and analyze on-going financial information pertaining to each Property and the
overall portfolio of Properties;

     (i) Upon request of the Company, act, or obtain the services of others to act, as
attorney-in-fact or agent of the Company in making, acquiring and disposing of investments,
disbursing and collecting the funds, paying the debts and fulfilling the obligations of the Company
and handling, prosecuting and settling any claims of the Company, including foreclosing and
otherwise enforcing mortgage and other liens and security interests securing investments;

     (j) Assist in negotiations on behalf of the Company with investment banking firms and other
institutions or investors for public or private sales of securities of the Company or for other
financing on behalf of the Company, but in no event in such a way that the Advisor shall be acting
as a broker, dealer or underwriter of securities of the Company;

     (k) On behalf of the Company, maintain, with respect to any Real Estate Assets and to the
extent available, title insurance or other assurance of title and customary fire, casualty and
public liability insurance;

     (l) At the direction of the Board of Directors, invest and reinvest any money of the Company;

     (m) Provide the Company with all necessary cash management services;

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     (n) Supervise the preparation and filing and distribution of returns and reports to
governmental agencies and to investors and act on behalf of the Company in connection with investor
relations;

     (o) Procure on behalf of the Company office space, equipment and personnel as required for the
performance of the foregoing services as advisor;

     (p) Advise the Company of the operating results of the Company’s properties, prepare on a
timely basis, and review, for such properties, operating budgets, maintenance and improvement
schedules, projections of operating results and such other reports as may be requested by the Board
of Directors;

     (q) As requested by the Company, make reports to the Company of its performance of the
foregoing services and furnish advice and recommendations with respect to other aspects of the
business of the Company;

     (r) Prepare on behalf of the Company, or engage independent professionals to prepare, all
reports and returns required by the Securities and Exchange Commission, Internal Revenue Service
and other state or federal governmental agencies, provided that the Company shall be responsible
for the fees of such independent professionals;

     (s) Undertake and perform all services or other activities necessary and proper to carry out
the investment objectives of the Company;

     (t) Undertake communications with Stockholders in accordance with applicable law and the
Charter; and

     (u) Enter into ancillary agreements with the Sponsor and its Affiliates to arrange for the
services to be provided by the Advisor hereunder in accordance with this Agreement;

provided, however, that Affiliates of the Advisor have no obligations to the Company other than as
expressly stated herein, and the Advisor and its Affiliates have no obligations to present to the
Company any specific investment opportunity except as described herein and in the Prospectus.
Notwithstanding the foregoing, the Advisor hereby represents and acknowledges that it will have
fiduciary duties to the Company and the Stockholders and that the Company is making a statement to
that effect in its registration statement filed with the Securities and Exchange Commission.

3. NO PARTNERSHIP OR JOINT VENTURE.

     The Company and the Advisor are not, and shall not be deemed to be, partners or joint
venturers with each other.

4. RECORDS.

     The Advisor shall maintain appropriate books of account and records relating to services
performed hereunder, which shall be accessible for inspection by the Company at any time during
ordinary business hours.

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5. ACTIONS RELATING TO REIT QUALIFICATION.

     Notwithstanding any other provision of this Agreement to the contrary, the Advisor shall
refrain from any action which, in its reasonable judgment or in any judgment of the Board of
Directors of which the Advisor has written notice, would adversely affect the qualification of the
Company as a REIT under the Code or which would violate any law, rule or regulation of any
governmental body or agency having jurisdiction over the Company or its securities, or which would
otherwise not be permitted by the Charter. If any such action is ordered by the Board of Directors,
the Advisor shall promptly notify the Board of Directors of the Advisor’s judgment that such action
would adversely affect such status or violate any such law, rule or regulation or the Charter, and
shall thereafter refrain from taking such action pending further clarification or instruction from
the Board of Directors.

6. BANK ACCOUNTS.

     At the direction of the Board of Directors, the Advisor may establish and maintain bank
accounts in the name of the Company, and may collect and deposit into and disburse from such
accounts any money on behalf of the Company, under such terms and conditions as the Board of
Directors may approve, provided that no funds in any such account shall be commingled with funds of
the Advisor. The Advisor shall from time to time, as the Company may require, render appropriate
accountings of such collections, deposits and disbursements to the Board of Directors and to the
auditors of the Company.

7. FIDELITY BOND.

     The Advisor shall not be required to obtain or maintain a fidelity bond in connection with the
performance of its services hereunder.

8. INFORMATION FURNISHED TO THE ADVISOR.

     The Board of Directors will keep the Advisor informed in writing concerning the investment and
financing policies of the Company. The Board of Directors shall notify the Advisor promptly in
writing of its intention to make any investments or to sell or dispose of any existing investments.
The Company shall furnish the Advisor with a certified copy of all financial statements, a signed
copy of each report prepared by independent certified public accountants, and such other
information with regard to its affairs as the Advisor may reasonably request.

9. COMPENSATION.

     The Advisor and its Affiliates shall be paid for services rendered by the Advisor under this
Agreement as follows:

     (a) The Advisor or its Affiliates shall receive an Acquisition Fee payable by the Company as
compensation for services rendered in connection with the investigation, selection and acquisition
of Real Estate Assets and Real Estate-Related Securities (by purchase, investment, merger or
exchange) (i) acquired during the period of time beginning on the Effective Date and ending on the
date of termination of this Agreement using (A) funds from any source received during the period of
time beginning on the Effective Date and ending on the date of termination of this Agreement or (B)
Shares or units of limited partnership interest of the Partnership for which an agreement for the
issuance of such Shares or units was entered into during the period of time beginning on the
Effective Date and ending on

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 the date of termination of this Agreement, and (ii) acquired after the date of termination of this
Agreement using (A) funds from any source received during the period of time beginning on the
Effective Date and ending on the date of termination of this Agreement or (B) Shares or units of
limited partnership interest of the Partnership for which an agreement for the issuance of such
Shares or units was entered into during the period of time beginning on the Effective Date and
ending on the date of termination of this Agreement, including any acquisitions funded with net
proceeds from a Sale. The total Acquisition Fees paid to the Advisor or its Affiliates shall not
exceed (i) 1.0% of the Contract Purchase Price of Properties acquired directly or indirectly by the
Company, and (ii) 1.0% of the origination price or purchase price of (A) Real Estate-Related
Securities and (B) Real Estate Assets other than Properties, originated or acquired by the Company.
At the Advisor’s discretion, a portion of the Acquisition Fee may be paid to third-party developers
for services rendered. Acquisition Fees shall be payable on the acquisition of a specific Property,
on the acquisition of a portfolio of Properties through a purchase of assets, controlling
securities or by Joint Venture, by a merger or similar business combination or other comparable
transaction, on the completion of development of a Property or Properties for the Company, or on
the origination or acquisition of Real Estate-Related Securities or Real Estate Assets other than
Properties. However, the total of all Acquisition Fees and Acquisition Expenses payable with
respect to any Real Estate Assets and Real Estate-Related Securities shall not exceed 6.0% of the
Contract Purchase Price of such Real Estate Assets or Real Estate-Related Securities, or in the
case of a loan, 6.0% of the funds advanced, unless fees in excess of such amount are approved by a
majority of the Directors not interested in such transaction and by a majority of the Independent
Directors not interested in such transaction and which transaction is determined to be commercially
competitive, fair and reasonable to the Company. Notwithstanding anything to the contrary herein,
in the event the Advisor’s obligations in Section 2 herein terminate or are waived by the Company,
the Advisor may, in its sole discretion, waive all or a portion of its rights under this Section
9(a).

     (b) The Advisor shall receive as compensation for services rendered in connection with the
management of the Company’s assets the Asset Management Fee. The amount of the Asset Management Fee
shall be equal to 0.30% of Average Invested Assets, calculated monthly not to exceed one-twelfth of
0.30% of the Average Invested Assets of the Company as of the last day of the immediately preceding
quarter. The Asset Management Fee shall be payable monthly in arrears by the Company in cash equal
to 0.25% of Average Invested Assets and in Shares equal to 0.05% of Average Invested Assets, and
may be deferred, in whole or in part, from time to time, by the Advisor (without interest). For
purposes of this Section 9(b), Shares shall be issued at the then-current issue price under the
Company’s distribution reinvestment plan or, in the event that the Company has no distribution
reinvestment plan, at the fair market value of the Shares as reasonably determined by the Board of
Directors, including a majority of the Independent Directors.

     (c) [Reserved.]

     (d) If the Advisor or an Affiliate provides a substantial amount of the services in connection
with the Sale of one or more Properties, the Advisor or an Affiliate shall receive a Property
Disposition Fee equal to the lesser of (i) one-half of a Competitive Real Estate Commission or (ii)
1.75% of the Contract Sales Price of such Property or Properties. The Property Disposition Fee may
be paid in addition to real estate commissions paid to non-Affiliates; provided, however, that the
total real estate commissions paid to all Persons by the Company with respect to the Sale of such
Property or Properties shall not exceed an amount equal to the lesser of (i) 6.0% of the Contract
Sales Price of the Property or Properties or (ii) the Competitive Real Estate Commission.

11

 

     (e) The Company shall pay the Advisor a Subordinated Performance Fee in connection with any
one of the following events:

	 	(i)	 	Upon Listing, the Advisor shall be entitled to the Subordinated
Performance Fee in an amount equal to 15.0% of the amount by which (i) the
Market Value of the Company’s outstanding Shares plus distributions paid by the
Company prior to Listing, exceeds (ii) the sum of the Invested Capital plus the
Cumulative Return. The Company shall have the option to pay such fee in the form
of cash, Shares, a non-interest bearing promissory note, or any combination of
the foregoing, as agreed to by the Advisor. Absent such agreement, the fee
shall be paid in cash, provided, however, that the Company shall not be required
to Sell any Real Estate Asset or Real Estate-Related Securities in order to pay
such fee and any shortfall may be paid by the Company with a non-interest
bearing promissory note. If the Company pays such fee with a non-interest
bearing promissory note, payment in full shall be made from the Net Sales
Proceeds of the first Sale completed by the Company after Listing. If the Net
Sales Proceeds from the first Sale after Listing are insufficient to pay the
promissory note in full, then the promissory note shall be paid in part with
such Net Sales Proceeds, and in part from the Net Sales Proceeds from the next
successive Sales until the amount owing pursuant to such promissory note is paid
in full. If the promissory note has not been paid in full within five years from
the date of Listing, then the Advisor, or its successors or assigns, may elect
to convert the unpaid balance into Shares at a price per Share equal to the
average closing price of the Shares over the ten trading days immediately
preceding the date of such election. If the Shares are no longer Listed at such
time as the promissory note becomes convertible into Shares as provided by this
paragraph, then the price per Share, for purposes of conversion, shall equal the
fair market value for the Shares as determined by the Board of Directors based
upon the appraised value of the Company’s Real Estate Assets and Real
Estate-Related Securities as of the date of election;
	 
	 	(ii)	 	Upon a Sale, the Advisor shall be entitled to the Subordinated
Performance Fee in an amount equal to 15.0% of net sale proceeds remaining after
the Stockholders have received the sum of the Invested Capital plus the
Cumulative Return. The Company shall have the option to pay such fee in the form
of cash, Shares, a non-interest bearing promissory note, or any combination of
the foregoing, as agreed to by the Advisor. Absent such agreement, the fee
shall be paid in cash, provided, however, that the Company shall not be required
to Sell any additional Real Estate Asset or Real Estate-Related Securities in
order to pay such fee and any shortfall may be paid by the Company with a
non-interest bearing promissory note; or
	 
	 	(iii)	 	Upon termination, unless such termination is by the Company
because of a material breach of this Agreement by the Advisor or occurs upon a
Change of Control, the Advisor shall be entitled to receive a payment of the
Subordinated Performance Fee equal to 15.0% of the amount, if any, by which (i)
the appraised value of the Company’s Real Estate Assets and Real Estate-Related
Securities, valued on a portfolio basis, on the date of termination of this
Agreement, less the amount of all indebtedness secured by the Company’s Real
Estate Assets and Real Estate-Related Securities, plus the total distributions
paid to Stockholders from the Company’s inception through the date of
termination of this Agreement, exceeds (ii) the sum of

12

 

	 	 	 	the Invested Capital plus the Cumulative Return from inception through the date
of termination of this Agreement. The Company shall pay such Subordinated
Performance Fee at such time as the Company completes the first Sale after the
date of termination of this Agreement. Payment shall be made from the Net Sales
Proceeds of such Sale. The Company shall have the option to pay such fee in the
form of cash, Shares, a non-interest bearing promissory note, or any combination
of the foregoing, as agreed to by the Advisor. Absent such agreement, the fee
shall be paid in cash. If the Net Sales Proceeds from the first Sale after the
date of termination of this Agreement are insufficient to pay the Subordinated
Performance Fee in full, then the Subordinated Performance Fee shall be paid in
part with such Net Sales Proceeds, and in part from the Net Sales Proceeds from
the next successive Sales until the Subordinated Performance Fee is paid in
full. If the Subordinated Performance Fee has not been paid in full within five
years from the date of termination of this Agreement, then the Advisor, its
successors or assigns, may elect to convert the balance of the fee into Shares
at a price per Share equal to the average closing price of the Shares over the
ten trading days immediately preceding the date of such election if the Shares
are Listed at such time. If the Shares are not Listed at such time, the Advisor,
its successors or assigns, may elect to convert the balance of the fee into
Shares at a price per Share equal to the fair market value for the Shares as
reasonably determined by the Board of Directors.

     Notwithstanding the foregoing, if termination occurs upon a Change of Control, the Advisor
shall be entitled to payment of the Subordinated Performance Fee equal to 15.0% of the amount, if
any, by which (i) the value of the Company’s Real Estate Assets and Real Estate-Related Securities
on the date of termination of this Agreement as determined in good faith by the Board of Directors,
including a majority of the Independent Directors, based upon such factors as the consideration
paid in connection with the Change of Control and the most recent appraised value of the Company’s
Real Estate Assets and Real Estate-Related Securities, valued on a portfolio basis, less the amount
of all indebtedness secured by the Company’s Real Estate Assets and Real Estate-Related Securities,
plus the total distributions paid to Stockholders from the Company’s inception through the date of
termination of this Agreement, exceeds (ii) the sum of the Invested Capital plus the Cumulative
Return from inception through the date of termination of this Agreement. No deferral of payment of
the Subordinated Performance Fee may be made under this paragraph of this Section 9(e). In the
event that the Advisor disagrees with the valuation of Shares pursuant to the immediately preceding
paragraph of this Section 9(e) where the Shares are not Listed for purposes of determining the
number of Shares to be issued to the Advisor following the Advisor’s election to convert the
balance of the Subordinated Performance Fee owed to the Advisor, then the fair market value of such
Shares shall be determined by an independent expert of equity value selected by the Advisor.

     Payment of a Subordinated Performance Fee may be in addition to, and shall be calculated after
provision for payment of, any Acquisition Fee or Property Disposition Fee paid or payable to the
Advisor. In the event a subordinated fee or distribution is owed to any predecessor advisor to the
Company or the Partnership, Advisor agrees to assume such obligation from the Company and make
payment to such predecessor advisor of such subordinated fee or distribution from the proceeds of
any payments made to the Advisor by the Company pursuant to this Section 9(e).

     (f) In the event of the origination or refinancing of any debt financing obtained by the
Company, including the assumption (directly or indirectly) of existing debt, that is used to
acquire Real Estate Assets or originate or acquire Real Estate-Related Securities or is assumed
(directly or indirectly)

13

 

in connection with the acquisition of Real Estate Assets or the origination or acquisition of
Real Estate-Related Securities, and if the Advisor provides a substantial amount of services, as
determined by the Independent Directors, in connection therewith, the Company will pay to the
Advisor a fee (the “Financing Coordination Fee”) equal to 1.0% of the amount available to the
Company and/or outstanding under such debt financing; provided, however, that the Advisor shall not
be entitled to a Financing Coordination Fee in connection with any indebtedness assumed in
connection with the acquisition of a Real Estate Asset or Real Estate-Related Securities if the
Advisor has been paid an Acquisition Fee in respect of such indebtedness because such indebtedness
is included in the Contract Purchase Price, or otherwise, and provided further that the Advisor
shall not be entitled to a Financing Coordination Fee in connection with the refinancing of any
loan secured by any particular Real Estate Asset or Real Estate-Related Security that was
previously subject to a refinancing in which the Advisor received a Financing Coordination Fee.
Financing Coordination Fees payable from loan proceeds from permanent financing will be paid to the
Advisor as the Company acquires such permanent financing; provided, however, that with respect to
any revolving line of credit, the Advisor will be paid a Financing Coordination Fee only in
connection with amounts being drawn for the first time and not upon any re-drawing of amounts that
previously were repaid by the Company.

10. EXPENSES.

     (a) In addition to the compensation paid to the Advisor or an affiliate pursuant to Section 9
hereof, the Company or the Partnership shall pay directly or reimburse the Advisor for all of the
expenses paid or incurred by the Advisor or an affiliate in connection with the services it
provides to the Company and the Partnership pursuant to this Agreement, including, but not limited
to:

	 	(i)	 	the Company’s Organizational and Offering Expenses; provided,
however, that within 60 days after the end of the month in which the Offering
terminates, the Advisor shall reimburse the Company for any Organizational and
Offering Expenses reimbursement received by the Advisor pursuant to this Section
10, to the extent that such reimbursement exceeds the maximum amount permitted
under the Prospectus or, at the option of the Company, such excess shall be
subtracted from the next reimbursement of expenses to be made by the Company
pursuant to this Section 10. The Advisor shall be responsible for the payment of
all the Company’s Organizational and Offering Expenses in excess of the maximum
amount permitted under the Prospectus;
	 
	 	(ii)	 	Acquisition Expenses incurred in connection with the selection,
evaluation and acquisition of Properties;
	 
	 	(iii)	 	the actual cost of goods and services used by the Company and
obtained from entities not affiliated with the Advisor, other than Acquisition
Expenses;
	 
	 	(iv)	 	interest and other costs for borrowed money, including discounts,
points and other similar fees;
	 
	 	(v)	 	taxes and assessments on income of the Company or its Real Estate
Assets;
	 
	 	(vi)	 	costs associated with insurance required in connection with the
business of the Company or by the Directors;

14

 

	 	(vii)	 	expenses of managing and operating Properties owned by the
Company, payable to the Property Manager;
	 
	 	(viii)	 	all compensation and expenses payable to the Independent Directors and all
expenses payable to the non-Independent Directors in connection with their
services to the Company and the Stockholders and their attendance at meetings of
the Directors and Stockholders;
	 
	 	(ix)	 	expenses associated with a Listing, if applicable, or with the
issuance and distribution of Shares, such as selling commissions and fees,
marketing and advertising expenses, taxes, legal and accounting fees, Listing
and registration fees, and other Organizational and Offering Expenses;
	 
	 	(x)	 	expenses connected with payments of distributions in cash or
otherwise made or caused to be made by the Company to the Stockholders;
	 
	 	(xi)	 	expenses of amending, converting, liquidating or terminating the
Company or the Charter;
	 
	 	(xii)	 	expenses of maintaining communications with Stockholders,
including the cost of preparation, printing and mailing annual and other
Stockholder reports, proxy statements and other reports required by governmental
entities;
	 
	 	(xiii)	 	administrative services expenses (including personnel costs; provided,
however, that no reimbursement shall be made for costs of personnel to the
extent that such personnel perform services for which the Advisor receives a
separate fee);
	 
	 	(xiv)	 	transfer agent and registrar’s fees and charges paid to third
parties; and
	 
	 	(xv)	 	audit, accounting, legal and other professional fees.

     (b) Expenses incurred by the Advisor on behalf of the Company and the Partnership and payable
pursuant to this Section 10 shall be reimbursed no less than monthly to the Advisor. The Advisor
shall prepare a statement documenting the expenses of the Company and the Partnership and the
calculation of the Asset Management Fee during each quarter, and shall deliver such statement to
the Company and the Partnership within 45 days after the end of each quarter.

11. COMPENSATION FOR ADDITIONAL SERVICES, CERTAIN LIMITATIONS.

     (a) If the Company shall request the Advisor or its Affiliates to render services for the
Company other than those required to be rendered by the Advisor hereunder, such additional
services, if the Advisor elects to perform them, will be compensated separately on terms to be
agreed upon between such party and the Company from time to time in accordance with this Section.
The rate of compensation for such services shall be approved by a majority of the Board of
Directors, including a majority of the Independent Directors, and shall not exceed an amount that
would be paid to nonaffiliated third parties for similar services.

     (b) In extraordinary circumstances, the Advisor and its Affiliates may provide other goods and
services to the Company if all of the following criteria are met: (i) the goods or services must be

15

 

necessary to the prudent operation of the Company; and (ii) the compensation, price or fee
must be equal to the lesser of the compensation, price or fee the Company would be required to pay
to independent parties who are rendering comparable services or selling or leasing comparable goods
on competitive terms in the same geographic location, or the compensation, price or fee charged by
the Advisor or its Affiliates for rendering comparable services or selling or leasing comparable
goods to third parties on competitive terms. In addition, any such payment will be subject to the
further limitation described in paragraph (c) below. Extraordinary circumstances shall be presumed
only when there is an emergency situation requiring immediate action by the Advisor or its
Affiliates and the goods or services are not immediately available from unaffiliated parties.
Services which may be performed in such extraordinary circumstances include emergency maintenance
of Company Properties, janitorial and other related services due to strikes or lock-outs, emergency
tenant evictions and repair services which require immediate action, as well as operating and
re-leasing properties with respect to which the leases are in default or have been terminated.

     (c) No reimbursement will be permitted to the Advisor or its Affiliates under Section 10(a)
above for the salaries, fringe benefits, travel expenses and other administrative items of any
controlling persons of the Advisor, its Affiliates or any other supervisory personnel except in
those instances in which the Company believes it to be in the best interest of the Company that the
Advisor or its Affiliates operate or otherwise deal with, for an interim period, a Property with
respect to which the lease is in default or terminated. Permitted reimbursements, except as set
forth above, include salaries and related salary expenses for non-supervisory services which could
be performed directly for the Company by independent parties such as legal, accounting, transfer
agent, data processing and duplication. Controlling persons, for purposes of this Section, include,
but are not limited to, those entities or individuals holding 5.0% or more of the ownership
interests of the Advisor or a person having the power to direct or cause the direction of the
Advisor, whether through ownership of voting securities, by contract or otherwise, and any person,
irrespective of his or her title, who performs functions for the Advisor similar to those of: (a)
chairman or member of the board of directors; or (b) president or executive vice president.

     Notwithstanding the foregoing, and subject to the approval of the Board of Directors, the
Company may reimburse the Advisor for expenses related to the activities of controlling persons
undertaken in capacities other than those which cause them to be controlling persons. The Advisor
believes that the employees of the Advisor, its Affiliates and controlling persons who perform
services for the Company for which reimbursement is allowed pursuant to Section 11(b) have the
experience and educational background, in their respective fields of expertise, appropriate for the
performance of such services.

     The Advisor and its Affiliates may not be reimbursed by the Company for their overhead, nor
can overhead costs or expenses of the Advisor or its Affiliates be allocated to or paid by the
Company. The foregoing reimbursements of expenses, as limited by this Agreement, will be made
regardless of whether any cash distributions are made to the Stockholders.

12. STATEMENTS.

     The Advisor shall furnish to the Company not later than the 30th day following the end of each
Fiscal Year, a statement showing a computation of the fees or other compensation payable to the
Advisor or an Affiliate of the Advisor with respect to such Fiscal Year under Sections 9 and 11
hereof. The final settlement of compensation payable under Sections 9 and 11 hereof for each Fiscal
Year shall

16

 

be subject to adjustments in accordance with, and upon completion of, the annual audit of the
Company’s financial statements.

13. INTERNALIZATION OF THE ADVISOR.

     The Company shall consider becoming a self-administered REIT once the Company’s assets and
income are, in the view of the Board of Directors, including a majority of the Independent
Directors, of sufficient size such that internalizing the management functions by the Advisor is in
the best interests of the Stockholders. In the event that the Board of Directors determines to
internalize any management functions provided by the Advisor, neither the Company nor the
Partnership shall pay any compensation or other remuneration to the Advisor or any Affiliate of the
Advisor in connection with the internalization transaction. The provisions of this Section 13 are
not intended to limit any other compensation or distribution the Company or Partnership may pay the
Advisor in accordance with this Agreement or any other agreement.

14. [Reserved.]

15. REIMBURSEMENT BY ADVISOR.

     The parties acknowledge that pursuant to the “Statement of Policy Regarding Real Estate
Investment Trusts,” as revised and adopted by the North American Securities Administrators
Association on May 7, 2007, Total Operating Expenses of the Company shall be deemed to be excessive
if in any Fiscal Year they exceed the greater of (a) 2.0% of the Company’s Average Invested Assets
for such Fiscal Year; or (b) 25.0% of the Net Income for such Fiscal Year. The Independent
Directors shall have the fiduciary responsibility of limiting such expenses to amounts that do not
exceed such limitations. Within 60 days after the end of any fiscal quarter of the Company for
which Total Operating Expenses (for the 12 months then ended) exceed 2.0% of Average Invested
Assets or 25.0% of Net Income, whichever is greater, the Company shall send to the Stockholders
written notice of such fact together with the determination of the Independent Directors as to
whether such higher operating expenses were justified and if so justified, an explanation of the
facts the Independent Director considered in arriving at that conclusion also shall be included. If
the Independent Directors determine that such excess expenses are not justified, then the Advisor
shall reimburse the Company the amount by which the aggregate expenses incurred by the Company
exceed the limitations described above at the end of the Fiscal Year; provided, however, that the
Company may instead permit such reimbursements to be effected by a reduction in the amount of the
next payments of compensation or reimbursement of expenses under Sections 9 and 10.

16. [Reserved.]

17. OTHER ACTIVITIES OF THE ADVISOR.

     Subject to the provisions specifically set forth herein, the Advisor and its Affiliates
currently engage, and may engage in the future, in other businesses or activities including the
rendering of services and investment advice with respect to real estate investment opportunities to
other persons or entities and may manage other investments (including the investments of the
Advisor and its Affiliates), including those in competition with the Company. The Advisor or its
Affiliates may, with respect to any investment in which the Company is a participant, also render
advice and service to each and every other participant therein. The Advisor shall report to the
Board of Directors the existence of any condition or circumstance, existing or anticipated, of
which it has knowledge, which creates or could create a conflict

17

 

of interest between the Advisor’s obligations to the Company and its obligations to or its
interest in any other Person. The Advisor or its Affiliates shall promptly disclose to the Board of
Directors knowledge of such condition or circumstance.

     Directors, officers, employees and agents of the Advisor or of Affiliates of the Advisor may
serve as directors, officers, employees or agents of the Company.

18. TERM; TERMINATION OF AGREEMENT.

     This Agreement will have an initial term of one year from the Effective Date, subject to
successive one year renewals with the mutual consent of the parties, which must include the
approval of a majority of the Independent Directors.

     Notwithstanding any other provision of this Agreement to the contrary, either the Company or
the Advisor may terminate this Agreement, or any extension hereof, or the parties by mutual consent
or a majority of the Independent Directors may do so, in each case upon 60 days written notice
without cause or penalty. In the event of the termination of this Agreement, the Advisor will
cooperate with the Company and take all reasonable steps requested to assist the Board of Directors
in making an orderly transition of the advisory function.

     If this Agreement is terminated pursuant to this Section 18, such termination shall be without
any further liability or obligation of either party to the other, except as provided in Section 21.

     If this Agreement is terminated for any reason, all obligations of the Advisor and its
Affiliates to offer property to the Company for purchase, as described in Section 2(a), also shall
terminate.

19. ASSIGNMENTS.

     The Company may terminate this Agreement immediately in the event of its assignment by the
Advisor except an assignment to a successor organization which acquires substantially all of the
property and carries on the affairs of the Advisor, provided that following such assignment the
persons who controlled the operations of the Advisor immediately prior thereto shall control the
operations of the successor organization, including the performance of its duties under this
Agreement; however, if at any time subsequent to such assignment such persons shall cease to
control the operations of the successor organization, the Company may thereupon immediately
terminate this Agreement. This Agreement shall not be assignable by the Company without the consent
of the Advisor, except in the case of assignment by the Company to a corporation, trust or other
organization which is a successor to the Company. Any assignment of this Agreement shall bind the
assignee hereunder in the same manner as the assignor is bound hereunder.

20. DEFAULT, BANKRUPTCY, ETC.

     At the sole option of the Company, this Agreement shall be terminated immediately upon written
notice of termination from the Board of Directors to the Advisor if any of the following events
occur:

     (a) The Advisor violates any material provisions of this Agreement and, after receipt of
written notice of violation, such violation is not cured within 30 days; or

18

 

     (b) A court of competent jurisdiction enters a decree or order for relief in respect of the
Advisor in any involuntary case under the applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, or appoints a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of the Advisor or for any substantial part of its property or
orders the winding up or liquidation of the Advisor’s affairs; or

     (c) The Advisor commences a voluntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or consents to the entry of an order for relief in an
involuntary case under any such law, or consents to the appointment of or taking possession by a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the
Advisor or for any substantial part of its property, or makes any general assignment for the
benefit of creditors, or fails generally to pay its debts as they become due.

     The Advisor agrees that if any of the events specified in subsections (b) and (c) of this
Section 20 occur, it will give written notice thereof to the Company within seven (7) days after
the occurrence of such event.

21. ACTION UPON TERMINATION.

     The Advisor shall not be entitled to compensation after the date of termination of this
Agreement for further services hereunder, but shall be paid all compensation accruing to the date
of termination as set forth in Sections 9 and 11 hereof, and all reimbursements owed or owing
pursuant to Section 10 hereof. Subject to the provisions of Section 13, the Advisor shall
forthwith upon a termination:

     (a) Pay over to the Company all monies collected and held for the account of the Company
pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its
expenses to which it is then entitled;

     (b) Deliver to the Board of Directors a full accounting, including a statement showing all
payments collected by it and a statement of all monies held by it, covering the period following
the date of the last accounting furnished to the Board of Directors;

     (c) Deliver to the Board of Directors all property and documents of the Company then in the
custody of the Advisor; and

     (d) Cooperate with the Company and take all reasonable steps requested by the Company to
assist the Board of Directors in making an orderly transition of the advisory function.

22. AMENDMENTS.

     This Agreement shall not be amended, changed, modified, terminated or discharged in whole or
in part except by an instrument in writing signed by both parties hereto, or their respective
successors or assigns.

23. SUCCESSORS AND ASSIGNS.

     This Agreement shall bind any successors or permitted assigns of the parties hereto as herein
provided.

19

 

24. GOVERNING LAW.

     The provisions of this Agreement shall be governed, construed and interpreted in accordance
with the laws of the Commonwealth of Virginia, without regard to its conflict of laws provisions.

25. LIABILITY AND INDEMNIFICATION.

     (a) The Company shall, subject to the limitations imposed by Maryland statutory or decisional
law, as amended or interpreted, indemnify and pay or reimburse reasonable expenses to the Advisor
and its Affiliates, provided, that: (i) the Advisor or other party seeking indemnification has
determined, in good faith, that the course of conduct which cased the loss or liability was in the
best interest of the Company; (ii) the Advisor or other person seeking indemnification was acting
on behalf of or performing services on the part of the Company; (iii) such liability or loss was
not the result of negligence, misconduct or a knowing violation of the criminal law or any federal
or state securities laws on the part of the indemnified party; and (iv) such indemnification or
agreement to be held harmless is recoverable only out of the net assets of the Company and not from
the Stockholders.

     (b) The Company shall not indemnify the Advisor or its Affiliates for losses, liabilities or
expenses arising from or out of an alleged violation of federal or state securities laws by such
party unless one or more of the following conditions are met: (i) there has been a successful
adjudication on the merits of each count involving alleged securities law violations as to the
particular indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court
of competent jurisdiction as to the particular indemnitee; or (iii) a court of competent
jurisdiction approves a settlement of the claims and finds that indemnification of the settlement
and related costs should be made and the court considering the request has been advised of the
position of the Securities and Exchange Commission and the published opinions of any state
securities regulatory authority in which securities of the Company were offered and sold as to
indemnification for securities law violations.

     (c) The Company may advance amounts to persons entitled to indemnification hereunder for legal
and other expenses and costs incurred as a result of any legal action for which indemnification is
being sought only if all of the following conditions are satisfied: (i) the legal action relates to
acts or omissions with respect to the performance of duties or services by the indemnified party
for or on behalf of the Company; (ii) the legal action is initiated by a third party and a court of
competent jurisdiction specifically approves such advancement; and (iii) the indemnified party
receiving such advances undertakes to repay the advanced funds to the Company, together with the
applicable legal rate of interest thereon, in instances in which such party would not be entitled
to indemnification.

26. NOTICES.

     Any notice, report or other communication required or permitted to be given hereunder shall be
in writing unless some other method of giving such notice, report or other communication is
accepted by the party to whom it is given and shall be given by being delivered at the following
addresses of the parties hereto:

20

 

The Company and/or the Board of Directors:

Apartment Trust of America, Inc.

4901 Dickens Road

Suite 101

Richmond, VA 23230

The Partnership:

Apartment Trust of America Holdings, LP

4901 Dickens Road

Suite 101

Richmond, VA 23230

The Advisor:

ROC REIT Advisors, LLC

4901 Dickens Road

Suite 101

Richmond, VA 23230

Either party may at any time give notice in writing to the other party of a change of its address
for the purpose of this Section 26.

27. HEADINGS.

     The section headings hereof have been inserted for convenience of reference only and shall not
be construed to affect the meaning, construction or effect of this Agreement.

[SIGNATURES ON THE FOLLOWING PAGE]

21

 

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	APARTMENT TRUST OF AMERICA, INC.

 	 
	 	By:  	/s/ Stanley J. Olander, Jr.
 	 
	 	 	Name:  	Stanley J. Olander, Jr. 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	APARTMENT TRUST OF AMERICA HOLDINGS, LP

 	 
	 	By:  	Apartment Trust of America, Inc.
 	 
	 	 	 	 
	 	By:  	  /s/ Stanley J. Olander, Jr.	 
	 	 	Name:  	 Stanley J. Olander, Jr. 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	ROC REIT ADVISORS, LLC

 	 
	 	By:  	/s/ Gustav G. Remppies
 	 
	 	 	Name:  	Gustav G. Remppies 	 
	 	 	Title:  	Member 	 
	 

22exv10w2

Exhibit 10.2

SECOND AMENDED AND RESTATED

DISTRIBUTION REINVESTMENT PLAN

Apartment Trust of America, Inc.

     Apartment Trust of America, Inc., a Maryland corporation (the “Company”), has adopted this
Second Amended and Restated Distribution Reinvestment Plan (the “Plan”), to be administered by the
Company or an unaffiliated third party (the “Administrator”) as agent for participants in the Plan
(“Participants”), on the terms and conditions set forth below.

     1. Election to Participate. Any holder of shares of common stock of the Company, par value
$0.01 per share (the “Shares”) may become a Participant in the Plan by making a written election to
participate in the Plan on such purchaser’s subscription agreement at the time of subscription for
Shares or by completing and executing the enrollment form enclosed herein or any other appropriate
documentation as may be acceptable to the Administrator. Participants in the Plan are required to
have the full amount of their cash distributions (other than “Excluded Distributions” as defined
below) with respect to all Shares owned by them reinvested pursuant to the Plan. If a
stockholder’s Shares are held by a broker or nominee and the stockholder wants to participate in
the Plan, the stockholder must make appropriate arrangements with its broker or nominee.

     2. Distribution Reinvestment. The Administrator will receive all cash distributions (other
than Excluded Distributions) paid by the Company with respect to Shares of Participants
(collectively, the “Distributions”). Participation will commence with the next Distribution payment
after receipt of the Participant’s election pursuant to Paragraph 1 hereof, provided it is received
on or before 10 days prior to the last day of the period to which such Distribution relates. The
election will apply to all Distributions attributable to such period and to all periods thereafter,
unless and until termination of participation in the Plan, in accordance with Section 8. As used in
this Plan, the term “Excluded Distributions” shall mean those cash or other distributions
designated as Excluded Distributions by the Company’s board of directors (the “Board”). A written
election to participate must be received by the Administrator prior to the last business day of the
month, in order to become a Plan Participant with respect to that month’s Distributions. If the
period for Distribution payments shall be changed, then this paragraph shall also be changed,
without the need for advance notice to Participants.

     3. General Terms of Plan Investments.

     The Administrator will apply all Distributions subject to this Plan, as follows:

          (a) Until such time as the Board determines a reasonable estimate of the value of the Shares,
the Administrator will invest Distributions in Shares at a price equal to $9.50 less the aggregate
distributions per Share of any net sale proceeds from the sale of one or more of the Company’s
assets, or other special distributions so designated by the Board, distributed to stockholders,
regardless of the price per Share paid by the Participant for the Shares in respect of which the
Distributions are paid. On or after the date the Board determines a reasonable estimate of the
value of the Shares (the “Initial Board Valuation”) under the Company’s valuation policy, as such
valuation policy is amended from time to time (the “Valuation Policy”), the Administrator will
invest Distributions in Shares at a price equal to the most recently disclosed estimated value as
determined in accordance with the Valuation Policy less the aggregate distributions per Share of
any net sale proceeds from the sale of one or more of the Company’s assets, or other special
distributions so designated by the Board, distributed to stockholders. No advance notice of pricing
pursuant to this Paragraph 3(a) shall be required other than to the extent the issue is a material
event requiring the public filing of a Form 8-K.

          (b) Selling commissions will not be paid for the Shares purchased pursuant to the Plan.

          (c) Dealer manager fees will not be paid for the Shares purchased pursuant to the Plan.

          (d) Organizational and offering expenses will not be paid or reimbursed for the Shares
purchased pursuant to the Plan.

          (e) all costs of administration of the Plan will be paid by the Administrator. However, any
interest earned on distributions on shares within the Plan will be paid to the Administrator to
defray certain costs relating to the Plan.

          (f) For each Participant, the Administrator will maintain an account which shall reflect for
each period in which Distributions are paid (a “Distribution Period”) the Distributions received by
the Administrator on behalf of such Participant. A Participant’s account shall be reduced as
purchases of Shares are made on behalf of such Participant.

 

 

          (g) Distributions shall be invested in Shares by the Administrator within 30 days following
the payment date with respect to such Distributions to the extent Shares are available for purchase
under the Plan. If sufficient Shares are not available, any such funds that have not been invested
in Shares within 30 days after receipt by the Administrator will be distributed to Participants.
Any interest earned on such accounts will be returned to the respective Participant.

          (h) Participants may acquire fractional Shares, computed to four decimal places, so that 100%
of the Distributions will be used to acquire Shares. The ownership of the Shares shall be reflected
on the books of the Company or its transfer agent.

          (i) A Participant will not be able to acquire Shares under the Plan to the extent that such
purchase would cause the Participant to exceed the ownership limits set forth in the Company’s
charter, as amended, unless exempted by the Board.

     4. Absence of Liability. Neither the Company nor the Administrator shall have any
responsibility or liability as to the value of the Shares or any change in the value of the Shares
acquired for the Participant’s account. Neither the Company nor the Administrator shall be liable
for any act done in good faith, or for any good faith omission to act hereunder. This includes,
without limitation, any claim of liability arising out of failure to terminate a Participant’s
account upon a Participant’s death, the prices at which Shares are purchased, the times when
purchases are made, or fluctuations in the market price of the Shares.

     5. Suitability. Each Participant shall notify the Administrator in the event that, at any
time during his participation in the Plan, there is any material change in the Participant’s
financial condition, as compared to information previously provided to the stockholder’s broker or
financial advisors, or inaccuracy of any representation under the subscription agreement for the
Participant’s initial purchase of Shares. A material change shall include any anticipated or actual
material decrease in net worth or annual gross income, or any other material change in
circumstances that may be likely to cause the Participant to fail to meet the minimum income and
net worth standards set forth in the Company’s prospectus for the Participant’s initial purchase of
Shares or cause the Participant’s broker or financial advisor to determine that an investment in
Shares is no longer suitable and appropriate for the Participant.

     6. Reports to Participants. Within ninety (90) days after the end of each calendar year, the
Administrator will mail to each Participant a statement of account describing, as to such
Participant, the Distributions received, the number of Shares purchased and the per Share purchase
price for such Shares pursuant to the Plan during the prior year. Each statement also shall advise
the Participant that, in accordance with Section 5 hereof, the Participant is required to notify
the Administrator in the event there is any material change in the Participant’s financial
condition or if any representation made by the Participant under the subscription agreement for the
Participant’s initial purchase of Shares becomes inaccurate. Tax information regarding a
Participant’s participation in the Plan will be sent to each Participant by the Company or the
Administrator at least annually.

     7. Taxes. The following discussion summarizes the principal federal income tax consequences,
under current law, of participation in the Plan. It does not address all potentially relevant
federal income tax matters, including consequences peculiar to persons subject to special
provisions of federal income tax law (such as tax-exempt organizations, insurance companies,
financial institutions, broker-dealers and foreign persons). The discussion is based on various
rulings of the Internal Revenue Service regarding several types of distribution reinvestment plans.
No ruling, however, has been issued or requested regarding the Plan. The following discussion is
for your general information only, and you must consult your own tax advisor to determine the
particular tax consequences (including the effects of any changes in law) that may result from your
participation in the Plan and the disposition of any Shares purchased pursuant to the Plan.

     Reinvested Distributions. Stockholders subject to federal income taxation who elect to
participate in the Plan will incur a tax liability for distributions allocated to them even though
they have elected not to receive their distributions in cash but rather to have their distributions
reinvested pursuant to the Plan. Specifically, Participants will be treated as if they received the
distribution from the Company and then applied such distribution to purchase the Shares pursuant to
the Plan. To the extent that a stockholder purchases Shares through the Plan at a discount to fair
market value, the stockholders will be treated for tax purposes as receiving an additional
distribution equal to the amount of such discount. A stockholder designating a distribution for
reinvestment will be taxed on the amount of such distribution as ordinary income to the extent such
distribution is from current or accumulated earnings and profits, unless the Company has designated
all or a portion of the distribution as a capital gain dividend. In such case, such designated
portion of the distribution will be taxed as a capital gain. The amount treated as a distribution
to Participants will constitute a dividend for federal income tax purposes to the same extent as a
cash distribution.

     Receipt of Share Certificates and Cash. Participants will not realize any income if they
receive certificates for whole shares credited to their account pursuant to the Plan. Any cash
received for a fractional share held in the Participant’s account will be treated

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as an amount realized on the sale of the fractional share. Participants therefore will
recognize gain or loss equal to any difference between the amount of cash received for a fractional
share and their tax basis in the fractional share.

     8. Termination.

          (a) A Participant may terminate his participation in the Plan with respect to all, but not
less of than all, of the Participant’s Shares (including Shares held for the Participant’s account
pursuant to the Plan) at any time by written notice to the Administrator. To be effective for any
Distribution, such notice must be received by the Administrator on or before 10 days prior to the
last day of the period to which such Distribution relates.

          (b) As the Distribution Period is presently monthly, a written election to terminate must be
received by the Administrator on or before 10 days prior to the last day of the month in order to
terminate participation in the Plan for that month. If the period for Distribution payments shall
be changed, then this paragraph shall also be changed, without the need for advance notice to
Participants.

          (c) A Participant’s transfer of Shares will terminate participation in the Plan with respect
to such transferred Shares as of the first day of the Distribution Period in which such transfer is
effective, unless the transferee of such Shares in connection with such transfer demonstrates to
the Administrator that such transferee meets the requirements for participation hereunder and
affirmatively elects participation by delivering an executed authorization form or other instrument
required by the Administrator.

          (d) Upon termination of a Participant’s participation in the Plan (either by the Participant
or the Company), the stock ownership records will be updated to include the number of whole shares
in the Participant’s Plan account. For any fractional shares of stock in the Participant’s Plan
account, the Administrator may either (i) send the Participant a check in payment for any
fractional shares in their account, or (ii) credit their stock ownership account with any such
fractional shares.

     9. Eligibility Restrictions. The Administrator is authorized to deny participation in the
Plan to residents of any state or foreign jurisdiction that imposes restrictions on participation
in the Plan that conflict with the general terms and provisions of this Plan, including states and
foreign jurisdictions where the Shares are neither registered under applicable securities laws nor
exempt from registration. The Company reserves the right to prohibit certain employee benefit
plans from participating in the Plan if such participation could cause the underlying assets of the
Company to constitute “plan assets” of such plans.

     10. Amendment or Termination by Company.

          (a) The terms and conditions of this Plan may be amended by the Company at any time,
including but not limited to an amendment to the Plan to substitute a new Administrator to act as
agent for the Participants, by mailing an appropriate notice at least 10 days prior to the
effective date thereof to each Participant; provided, however, the Company may not amend the Plan
to (a) provide for selling commissions or dealer merger fees to be paid for shares purchased
pursuant to the Plan or (b) revoke a Participant’s right to terminate his participation in the
Plan.

          (b) The Administrator may terminate a Participant’s individual participation in the Plan and
the Company may terminate the Plan itself, at any time by providing 10 days’ prior written notice
to a Participant, or to all Participants, as the case may be; provided, however, that the Company
may terminate any Participant’s participation in the Plan at any time by notice to such Participant
if continued participation will, in the opinion of the Board, jeopardize the status of the Company
as a real estate investment trust under the Internal Revenue Code of 1986, as amended; provided,
further, that any participation that is subsequently determined, in the opinion of the Board, to
jeopardize the status of the Company as a real estate investment trust under the Internal Revenue
Code of 1986, as amended, will be voiced, ab initio.

          (c) After termination of the Plan or termination of a Participant’s participation in the
Plan, the Administrator will send to each Participant a check for the amount of any Distributions
in the Participant’s account that have not been invested in Shares. Any future Distributions with
respect to such former Participant’s Shares made after the effective date of the termination of the
Participant’s participation will be sent directly to the former Participant.

     11. Voting. Participants in the Plan will be able to vote all Shares (including fractional
shares) credited to their account pursuant to the Plan at the same time they vote the Shares
registered in their name on the records of the Company.

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     12. Stock Dividends, Stock Splits and Rights Offerings. A Participant’s Plan account will be
amended to reflect the effect of any stock dividends, splits, reverse splits or other combinations
or recapitalizations by the Company on Shares held by the Participant pursuant to the Plan. If the
Company issues to its stockholders rights to subscribe to additional shares, such rights will be
issued to Participants based on their total share holdings, including Shares held in their Plan
account.

     13. Interpretation and Regulation of the Plan. The Company reserves the right, without
notice to Participants, to interpret and regulate the Plan as it deems necessary or desirable in
connection with its operation. Any such interpretation and regulation shall be conclusive.

     14. Participation by Limited Partners of Apartment Trust of America Holdings, LP. For
purposes of this Plan, “stockholders” shall be deemed to include limited partners of Apartment
Trust of America Holdings, LP (the “Partnership”), “Participants” shall be deemed to include
limited partners of the Partnership that elect to participate in the Plan, and “Distribution,” when
used with respect to a limited partner of the Partnership, shall mean cash distributions on limited
partnership interests held by such limited partner.

     15. Governing Law. This Plan and the Participants’ election to participate in the Plan shall
be governed by the laws of the State of Maryland.

     16. Notice. Any notice or other communication required or permitted to be given by any
provision of this Plan shall be in writing and, if to the Administrator, addressed to Investor
Services Department, 4901 Dickens Road, Suite 101, Richmond, Virginia 23230, or such other address
as may be specified by the Administrator by written notice to all Participants. Notices to a
Participant may be given by letter addressed to the Participant at the Participant’s last address
of record with the Administrator, which will satisfy the Administrator’s duty to give notice. Each
Participant shall notify the Administrator promptly in writing of any changes of address. If a
Participant moves his or her residence to a state where Shares offered pursuant to the Plan are
neither registered nor exempt from registration under applicable securities laws, the Company may
deem the Participant to have terminated participation in the Plan.

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ENROLLMENT FORM

APARTMENT TRUST OF AMERICA, INC.

SECOND AMENDED AND RESTATED DISTRIBUTION REINVESTMENT PLAN

To Join the Second Amended and Restated Distribution Reinvestment Plan:

     Complete and return this form. Be sure to include your signature in order to indicate your
participation in the Plan.

     I hereby appoint Apartment Trust of America, Inc. (the “Company”) (or any designee or
successor), acting as Plan Administrator, as my agent to receive cash distributions that may
hereafter become payable to me on shares of the Company’s common stock, $0.01 par value per share
(the “Common Stock”) registered in my name as set forth below, and authorize the Company to apply
such distributions to the purchase of full shares and fractional interests in shares of the Common
Stock.

     I understand that the purchases will be made under the terms and conditions of the Plan as
described in the applicable prospectus, and that I may revoke this authorization at any time by
notifying the Plan Administrator, in writing, of my desire to terminate my participation.

     Sign below if you would like to participate in the Second Amended and Restated Distribution
Reinvestment Plan. You must participate with respect to 100% of your shares.

	 	 	 
	 
	 	 
	
	 	 
	Signature

	 	Date
	 

	 	 
	 
	 	 
	 

	 	 
	Signature of Joint Owner

	 	Date

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