Document:

EX-10.6

 Exhibit 10.6 
  

 
  

Aimco JO Intermediate Holdings, LLC 

$534,127,075 
 5.2%
Secured Mezzanine Notes due January 31, 2024 
  

 
 Mezzanine
Note Agreement 
  
  

Dated as of             , 2020 

 
  

 

 Table of Contents 

 

							
	 	 	 	  	Page	 
	 Section 1.
	 	 Authorization of Notes
	  	 	1	 
			
	 Section 2.
	 	 Transfer and Issuance of Notes
	  	 	1	 
			
	 Section 3.
	 	 Closing
	  	 	1	 
			
	 Section 4.
	 	 Deliverables at Closing
	  	 	1	 
	 Section 4.1.
	 	 Delivery of Transferred Interests
	  	 	1	 
	 Section 4.2.
	 	 Pledge Agreement and Collateral
	  	 	2	 
	 Section 4.3.
	 	 James Oxford Operating Agreement
	  	 	2	 
			
	Section 5.	 	Representations and Warranties of the Company	  	 	2	 
	 Section 5.1.
	 	 Organization; Power and Authority
	  	 	2	 
	 Section 5.2.
	 	 Authorization, Etc.
	  	 	2	 
	 Section 5.3.
	 	 Organization and Ownership of Shares of Certain Subsidiaries
	  	 	2	 
	 Section 5.4.
	 	 REIT Representations
	  	 	3	 
	 Section 5.5.
	 	 Title to Property
	  	 	3	 
	 Section 5.6.
	 	 Existing Indebtedness; Restrictions on Indebtedness and Liens.
	  	 	3	 
			
	Section 6.	 	Notices From the Company	  	 	3	 
			
	Section 7.	 	Payment and Prepayment of the Notes	  	 	4	 
	 Section 7.1.
	 	 Maturity; Payment of Interest
	  	 	4	 
	 Section 7.2.
	 	 Mandatory Prepayments
	  	 	4	 
	 Section 7.3
	 	 Other Prepayments
	  	 	4	 
	 Section 7.4
	 	 Allocation of Partial Prepayments
	  	 	4	 
	 Section 7.5
	 	 Maturity; Surrender, Interest on Prepayments, Etc
	  	 	5	 
	 Section 7.6.
	 	 Payments Due on Non-Business Days
	  	 	5	 
	 Section 7.7.
	 	 Late Charges
	  	 	5	 
	 Section 7.8
	 	 Make-Whole Amount
	  	 	5	 
			
	Section 8.	 	Affirmative Covenants	  	 	5	 
	 Section 8.1.
	 	 Existence, Etc.
	  	 	6	 
	 Section 8.2.
	 	 REIT Covenants
	  	 	6	 
	 Section 8.3.
	 	 Maintenance of Properties
	  	 	6	 
	 Section 8.4.
	 	 Maintenance of Insurance
	  	 	6	 
	 Section 8.5.
	 	 Compliance with Laws
	  	 	6	 
	 Section 8.6.
	 	 Compliance with Mortgage Loan Documents
	  	 	6	 
			
	Section 9.	 	Negative Covenants	  	 	7	 
	 Section 9.1.
	 	 Merger, Consolidation, Etc.
	  	 	7	 
	 Section 9.2.
	 	 Liens
	  	 	7	 
	 Section 9.3.
	 	 Indebtedness
	  	 	8	 
	 Section 9.4.
	 	 Dispositions
	  	 	8	 
	 Section 9.5.
	 	 Sale and Leaseback Transactions
	  	 	9	 
	 Section 9.6.
	 	 Change in Nature of Business
	  	 	9	 

  
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	 Section 10.
	 	 Events of Default
	  	 	9	 
			
	 Section 11.
	 	 Remedies on Default, Etc.
	  	 	10	 
			
	 Section 11.1.
	 	 Acceleration
	  	 	10	 
	 Section 11.2.
	 	 Other Remedies
	  	 	11	 
	 Section 11.3.
	 	 Rescission
	  	 	11	 
	 Section 11.4.
	 	 No Waivers or Election of Remedies, Expenses, Etc.
	  	 	11	 
			
	 Section 12.
	 	 Collateral Matters
	  	 	11	 
	 Section 12.1.
	 	 Collateral
	  	 	11	 
	 Section 12.2.
	 	 Collateral Agent
	  	 	11	 
			
	 Section 13.
	 	 Registration; Exchange; Substitution of Notes
	  	 	12	 
	 Section 13.1.
	 	 Registration of Notes
	  	 	12	 
	 Section 13.2.
	 	 Transfer and Exchange of Notes
	  	 	13	 
	 Section 13.3.
	 	 Replacement of Notes
	  	 	13	 
			
	 Section 14.
	 	 Payments on Notes
	  	 	13	 
	 Section 14.1.
	 	 Place of Payment
	  	 	13	 
	 Section 14.2.
	 	 Payment by Wire Transfer
	  	 	14	 
	 Section 14.3.
	 	 Withholding
	  	 	14	 
			
	 Section 15.
	 	 Survival of Representations and Warranties; Entire Agreement
	  	 	14	 
			
	 Section 16.
	 	 Amendment and Waiver
	  	 	15	 
	 Section 16.1.
	 	 Requirements
	  	 	15	 
	 Section 16.2.
	 	 Binding Effect, Etc.
	  	 	15	 
	 Section 16.3.
	 	 Notes Held by Company, Etc.
	  	 	15	 
			
	 Section 17.
	 	 Notices
	  	 	15	 
			
	 Section 18.
	 	 Miscellaneous
	  	 	16	 
	 Section 18.1.
	 	 Successors and Assigns
	  	 	16	 
	 Section 18.2.
	 	 Accounting Terms
	  	 	16	 
	 Section 18.3.
	 	 Severability
	  	 	16	 
	 Section 18.4.
	 	 Construction, Etc.
	  	 	16	 
	 Section 18.5.
	 	 Counterparts
	  	 	17	 
	 Section 18.6.
	 	 Governing Law
	  	 	17	 
	 Section 18.7.
	 	 Jurisdiction and Process; Waiver of Jury Trial
	  	 	17	 

  
 ii 

									
	 Schedules
	  				  	
			
	 Schedule A
	  	 	—	 	  	 Defined Terms

			
	 Schedule 1
	  	 	—	 	  	 Form of 5.2% Secured Mezzanine Note due January 31, 2024

			
	 Schedule 2
	  	 	—	 	  	 Equity Interests Exchanged for Notes

			
	 Schedule 5.3
	  	 	—	 	  	 James Oxford Subsidiaries

			
	 Schedule 5.6
	  	 	—	 	  	 Existing Indebtedness

			
	 Purchaser Schedule
	  	 	—	 	  	 Information Relating to Purchasers

  
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 AIMCO JO INTERMEDIATE HOLDINGS, LLC 

4582 South Ulster Street, Suite 1400 

Denver, Colorado 80237 

5.2% Secured Mezzanine Notes due January 31, 2024 

As of             , 2020 

To Each of the Purchasers Listed in 
 the
Purchaser Schedule Hereto: 
 Ladies and Gentlemen: 

Aimco JO Intermediate Holdings, LLC, a Delaware limited liability company (the “Company”), agrees with each of the Purchasers
as follows: 
 Section 1.    Authorization of Notes. The Company has authorized
the issue of $534,127,075 aggregate principal amount of its 5.2% Secured Mezzanine Notes due January 31, 2024 (the “Notes”) in exchange for the Equity Interests in James Oxford described on Schedule 2. The Notes shall be
substantially in the form set out in Schedule 1. Certain capitalized and other terms used in this Agreement are defined in Schedule A and, for purposes of this Agreement, the rules of construction set forth in Section 18.4 shall
govern. 
 Section 2.    Transfer and Issuance of Notes. Subject to the terms
and conditions of this Agreement, the Company will issue to each Purchaser, in exchange for the Equity Interests transferred from each Purchaser to the Company as listed on Schedule 2 (such Equity Interests, the “Transferred
Interests”), at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser’s name in the Purchaser Schedule. The Purchasers’ obligations hereunder are several and not joint
obligations and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder. 

Section 3.    Closing. The issuance of the Notes to be issued to each Purchaser
shall occur at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, 155 N. Wacker Dr., Chicago, Illinois 60606, at 9:00 a.m., Chicago time, at a closing (the “Closing”) on
            , 2020. At the Closing, the Company will deliver to each Purchaser the Notes to be issued to such Purchaser in the form of a single Note dated the date of the Closing and
registered in such Purchaser’s name, against delivery by such Purchaser to the Company of the Transferred Interests owned by such Purchaser. In addition, at the Closing, the Company shall be admitted as a partner in James Oxford. 

Section 4.    Deliverables at Closing. At the Closing the following shall occur:

 Section 4.1.    Delivery of Transferred Interests. Each Purchaser shall transfer to the Company ownership
in the Transferred Interests, and the Company shall be admitted to James Oxford as a partner. 

 Section 4.2.    Pledge Agreement and Collateral. The Company
shall deliver to the Collateral Agent, for the benefit of each Purchaser, an executed counterpart of the Pledge Agreement and certificates representing the Transferred Interests, if any such certificates exist. 

Section 4.3.    James Oxford Operating Agreement. The Company shall deliver to such Purchaser executed
counterparts of the limited partnership agreement of James Oxford, which shall permit the Collateral Agent or a purchaser at a foreclosure sale to, pursuant to the remedies available to each such Person under the Pledge Agreement, be admitted to
James Oxford as a partner during an Event of Default hereunder. 

Section 5.    Representations and Warranties of the Company. The Company
represents and warrants to each Purchaser that: 
 Section 5.1.    Organization; Power and Authority. The
Company is a limited liability company duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign limited liability company and is in good standing in each
jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. The Company has the limited liability company power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this
Agreement and the other Note Documentation and to perform the provisions hereof and thereof. 

Section 5.2.    Authorization, Etc. This Agreement, the Pledge Agreement and the Notes have been duly
authorized by all necessary limited liability company action on the part of the Company, and this Agreement, the Pledge Agreement and the Notes constitute legal, valid and binding obligations of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and
(ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

Section 5.3.    Organization and Ownership of Shares of Certain Subsidiaries. 

(a)    As of the Closing and after giving effect to the transfer of the Transferred Interests by the Purchasers, the
Company will own all of the outstanding Equity Interests in James Oxford, except for the Minority Common Interests. As of the Closing and after giving effect to the transactions contemplated hereby, AIMCO/Bethesda is the owner of the Minority Common
Interests. As of the Closing, James Oxford directly or indirectly owns all of the outstanding Equity Interests in each James Oxford Subsidiary listed on Schedule 5.3. All of the outstanding Equity Interests of James Oxford owned by the Company have
been validly issued, are fully paid and non-assessable and are owned by the Company free and clear of any Lien that is prohibited by this Agreement. 

(b)    All of the outstanding Equity Interests of each James Oxford Subsidiary have been validly issued, are fully paid
and non-assessable and are owned directly or indirectly by James Oxford free and clear of any Lien that is prohibited by this Agreement. 

(c)    James Oxford, each James Oxford Entity and each James Oxford Subsidiary is a corporation, limited partnership,
limited liability company or other legal entity duly organized, validly existing and, where applicable, in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation, limited partnership, limited
liability company or other legal entity and, where applicable, is in good standing in each jurisdiction in which such qualification is required by 

  
 2 

 
law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. James Oxford, each James Oxford Entity and each James Oxford Subsidiary has the corporate, limited partnership, limited liability company or other power and authority to own or hold under lease the properties it purports to own or hold under
lease and to transact the business it transacts and proposes to transact. 
 Section 5.4.    REIT
Representations. As of the date of this agreement and at all times thereafter while any portion of any Note remains outstanding, James Oxford will hold real property (within the meaning of Treasury Regulation section 1.856-3(d)). 
 Section 5.5.    Title to Property. The Company has good
title to, and is the record and beneficial owner of, the Collateral free and clear of all Liens other than Liens expressly permitted hereunder. James Oxford has good title to, and is the record and beneficial owner of, directly or indirectly, all
Equity Interests in each James Oxford Subsidiary. Each James Oxford Subsidiary has good and marketable title to the Specified Property listed opposite its name on Schedule 5.3, in each case free and clear of Liens prohibited by this Agreement,
except for those defects in title that, individually or in the aggregate, would not have a Material Adverse Effect. 

Section 5.6.    Existing Indebtedness; Restrictions on Indebtedness and Liens. 

(a)    Schedule 5.6 sets forth a complete and correct list of all outstanding Indebtedness for borrowed money of the
Company, James Oxford, each James Oxford Entity and each James Oxford Subsidiary as of the Closing. Neither the Company, James Oxford nor any James Oxford Entity or any James Oxford Subsidiary is in default and no waiver of default is currently in
effect, in the payment of any principal or interest on any such Indebtedness and no event or condition exists with respect to any such Indebtedness that would permit (or that with notice or the lapse of time, or both, would permit) one or more
Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment. 

(b)    Neither the Company, James Oxford nor any James Oxford Entity or James Oxford Subsidiary is a party to, or
otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company, James Oxford, such James Oxford Entity or such James Oxford Subsidiary, any agreement relating thereto or any other agreement (including its
charter or any other organizational document) which would prohibit the incurrence of Indebtedness hereunder or the granting of Liens on the Collateral. 

Section 6.    Notices From the Company. The Company shall deliver to each holder
of a Note promptly, and in any event within 15 Business Days (or 10 Business Days in the case of (x) a merger or consolidation of the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary or (y) a Change of Control)
after a Responsible Officer becoming aware of the existence of any (i) Default or Event of Default, (ii) default or event of default under any document evidencing Indebtedness for borrowed money secured by a mortgage, deed of trust,
assignment of rents or other security interest on any Specified Property or of the Equity Interests in any Person that owns, directly or indirectly, any Specified Property, (iii) Disposition of any Specified Property, (iv) Casualty or
Condemnation Event with respect to any Specified Property, (v) merger or consolidation of the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary or (vi) Change of Control, written notice specifying the nature and
period of existence thereof and what action the Company is taking or proposes to take with respect thereto. 

  
 3 

 Section 7.    Payment and Prepayment of
the Notes. 
 Section 7.1.    Maturity; Payment of Interest. 

(a)    The entire unpaid principal balance of each Note shall be due and payable on the Maturity Date. 

(b)    The Company shall pay interest (computed on the basis of a 360-day year of
twelve 30-day months) on (i) the unpaid balance of each Note at the rate of 5.2% per annum from the date hereof, payable quarterly, on the first day of January, April, July and October in each year,
commencing on April 1, 2021, and on the Maturity Date, until the principal of each Note shall have been paid in full, and (ii) to the extent permitted by law, any overdue payment of interest, at the Default Rate pursuant to
Section 7.1(c) below. 
 (c)     (1) If any amount due in respect of the Notes (other than amounts due on the
Maturity Date) remains past due for thirty (30) days or more, interest on such unpaid amount(s) shall accrue from the date payment was due at the Default Rate and shall be payable upon demand by any Purchaser and (2) if any amount due in
respect of the Notes is not paid in full on the Maturity Date, then interest shall accrue at the Default Rate on all such unpaid amounts from the Maturity Date until fully paid and shall be payable upon demand by the Purchasers. 

Section 7.2.    Mandatory Prepayments. Promptly, and in any event within 15 Business Days, following a Disposition
by (including, without limitation, a Casualty or Condemnation Event) or merger, consolidation or similar event or transaction of the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary, the Company shall prepay or cause to
be prepaid the Notes in an amount equal to the Net Cash Proceeds of such Disposition or merger, consolidation or similar event or transaction, which prepayment shall be accompanied by the Make-Whole Amount determined for the prepayment date with
respect to such amount; provided that no such prepayment shall be required if the Remaining Collateral Value Test is satisfied and the Company elects to reinvest such Net Cash Proceeds in accordance with the Reinvestment Conditions; provided
further, if the Company elects to pursue such reinvestment option and such reinvestment does not occur within 180 days of the receipt of such Net Cash Proceeds, the Company shall prepay or cause to be prepaid the Notes on such 180th day. 

Section 7.3.    Other Prepayments. Except as provided in Section 7.2 or Section 11.1, the Notes shall not be
prepaid in whole or in part prior to the Maturity Date and the Purchasers shall have no obligation to accept any such attempted prepayment prior to the Maturity Date. The Company expressly acknowledges and agrees that (a) the prohibition on
prepayments is reasonable and is the product of an arm’s length transaction between sophisticated business people, (b) it shall be estopped hereafter from claiming differently than as agreed to in this paragraph, (c) its agreement to a
prohibition on prepayments as herein described is a material inducement to the Purchasers’ decision to enter into this Agreement and (d) upon a prepayment of the Notes in violation of this Section 7.2, the Purchasers would suffer substantial
harm, and any prepayment received and accepted in violation of this Section 7.3 shall be accompanied by the Make-Whole Amount. This Section 7.3 shall not prejudice the rights of the Purchasers to accelerate the Notes pursuant to Section 11 hereof.

 Section 7.4.    Allocation of Partial Prepayments. In the case of each partial prepayment of the Notes
pursuant to Section 7.2, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore
called for prepayment. 

  
 4 

 Section 7.5.    Maturity; Surrender, Interest on Prepayments,
Etc. Each prepayment of Notes made pursuant to Section 7.2 shall be accompanied by all accrued and unpaid interest in the amount so prepaid and the applicable Make-Whole Amount. Any Note paid or prepaid in full shall be surrendered to the
Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note. 

Section 7.6.    Payments Due on Non-Business Days. Anything in
the Note Documentation to the contrary notwithstanding, (x) except as set forth in clause (y), any payment of interest on any Note that is due on a date that is not a Business Day shall be made on the next succeeding Business Day without
including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; and (y) any payment of principal of or Make-Whole Amount on any Note (including principal due on the Maturity Date of such
Note) that is due on a date that is not a Business Day shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day. 

Section 7.7.    Late Charges. If any scheduled interest payment is not received by the holder of any
Note within 10 Business Days after the applicable payment date, inclusive of the date on which such amount is due, the Company shall pay to the applicable holder, immediately without demand by such holder, the Late Charge. 

Section 7.8.    Make-Whole Amount. 

The term “Make-Whole Amount” means, with respect to any Note, an amount equal to the Remaining Scheduled Payments with respect to
the Called Principal of such Note. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings: 

“Called Principal” means, with respect to any Note, the principal of such Note that is to be prepaid pursuant to Section 7.2 or has
become or is declared to be immediately due and payable pursuant to Section 11.1, as the context requires. 
 “Remaining Scheduled
Payments” means, with respect to the Called Principal of any Note, all payments of interest on such Called Principal that would be due after the Settlement Date and on or prior to the Maturity Date if no payment of such Called Principal were
made prior to its scheduled due date; provided that if such Settlement Date is not a date on which interest payments are due to be made under the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the
amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 7.2 or Section 11.1. 

“Settlement Date” means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid
pursuant to Section 7.2 or has become or is declared to be immediately due and payable pursuant to Section 11.1, as the context requires. 

The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free
from repayment by the Company (except as herein specifically provided for) and that the obligation to pay the Make-Whole Amount set forth herein is intended to provide compensation for the deprivation of such right under such circumstances. The
right to receive the Make-Whole Amount upon any prepayment or acceleration is a material inducement to the Purchasers’ decision to enter into this Agreement. 

  
 5 

 Section 8.    Affirmative
Covenants. The Company covenants that so long as any of the Notes are outstanding: 

Section 8.1.    Existence, Etc. Subject to Section 9.1, the Company will at all times preserve and
keep its limited liability company existence in full force and effect. Subject to Section 9.1, the Company will at all times cause to be preserved and kept in full force and effect the limited partnership, limited liability company or corporate
existence of James Oxford, each James Oxford Entity and each James Oxford Subsidiary and all rights and franchises of the Company, James Oxford, the James Oxford Entities and the James Oxford Subsidiaries unless, in the case of each James Oxford
Entity and each James Oxford Subsidiary, the termination of or failure to preserve and keep in full force and effect such existence, right or franchise would not, individually or in the aggregate, have a Material Adverse Effect. 

Section 8.2.    REIT Covenants. 

(a)    At all times necessary after the Closing while any portion of any Note remains outstanding, James Oxford will hold
real property (within the meaning of Treasury Regulation section 1.856-3(d)). 

(b)    Except for such regulatory notices, consents, or approvals as may be required under applicable law, James Oxford
has taken all steps necessary such that, upon default and foreclosure of the Note, the registered holders will replace the Company as a partner in James Oxford, and AIMCO/Bethesda has agreed that, in such circumstances, it will not unreasonably
oppose the admission of the registered holders as partners therein. 
 Section 8.3.    Maintenance of
Properties. The Company will, and shall cause James Oxford, each of the James Oxford Entities and each of the James Oxford Subsidiaries to, (a) maintain, preserve and protect all of its properties and equipment necessary in the operation of
its business, ordinary wear and tear, force majeure, casualty events and transactions not prohibited by this Agreement excepted, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect; (b) make all
necessary repairs thereto and renewals and replacements thereof except where the failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) use the standard of care typical in the industry in the operation and
maintenance of its facilities, taken as a whole. 
 Section 8.4.    Maintenance of Insurance. Except where
the failure to do so would not reasonably be expected to have a Material Adverse Effect, the Company will maintain or cause to be maintained, such insurance coverage with respect to liabilities, losses or damage in respect of the assets, properties
and business of the Company, James Oxford, the James Oxford Entities and the James Oxford Subsidiaries as may customarily be carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses (as
determined in good faith by the Company), in each case in such amounts, with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary for such Persons. 

Section 8.5.    Compliance with Laws. The Company, James Oxford, each James Oxford Entity and each James
Oxford Subsidiary will comply, and shall cause their respective Subsidiaries to comply, with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority, except to the extent the failure of the Company, James
Oxford, such James Oxford Entity, such James Oxford Subsidiary or such other Subsidiary to comply could not reasonably be expected to have a Material Adverse Effect. 

  
 6 

 Section 8.6.    Compliance with Mortgage Loan Documents.
Except where the failure to do so could not reasonably be expected to have a Material Adverse Effect, the Company will, and shall cause James Oxford, each of the James Oxford Entities and each of the James Oxford Subsidiaries to, comply with the
provisions of any document evidencing Indebtedness for borrowed money secured by a mortgage, deed of trust, assignment of rents or other security interest on any Specified Property or of the Equity Interests in any Person that owns, directly or
indirectly, any Specified Property or any mezzanine Indebtedness incurred by the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary. 

Section 9.    Negative Covenants. The Company covenants that so long as any of the
Notes are outstanding: 
 Section 9.1.    Merger, Consolidation, Etc. The Company will not and will
not permit James Oxford, any James Oxford Entity or any James Oxford Subsidiary to consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions
to any Person, consummate a Division as the Dividing Person, or liquidate or dissolve, unless: 
 (i)    the Company,
James Oxford, such James Oxford Entity or such James Oxford Subsidiary receives consideration (A) at least equal to the fair market value (such fair market value to be determined (i) on the date of contractually agreeing to such merger,
consolidation or other transaction and (ii) in good faith by the Company), of the Company, James Oxford, such James Oxford Entity or such James Oxford Subsidiary, as applicable, which such fair market value shall be a positive number, and
(B) that is 100% in the form of cash; provided that for purposes of determining “cash” consideration, any assumption of Indebtedness or other liabilities by buyer shall be deemed cash consideration, so long as seller is
released from such Indebtedness or other liabilities, and (ii) the Company prepays or causes to be prepaid the Notes to the extent required by Section 7.2. 

No such Disposition of assets or property shall have the effect of releasing the Company or any successor corporation, limited partnership,
limited liability company or other entity that shall theretofore have become such in the manner prescribed in this Section 9.1, from its liability under the Note Documentation. 

Section 9.2.    Liens. (a) The Company will not directly or indirectly create, incur, assume or permit to
exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any of the Collateral, whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive
income or profits, except: 
 (i)    Liens arising under the Note Documentation; or 

(ii)    Liens for taxes not yet due or which are being contested in good faith and by appropriate
proceedings in the circumstances, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP. 

  
 7 

 (b)    The Company will not permit James Oxford, any James Oxford Entity
or any James Oxford Subsidiary to, directly or indirectly, create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any of its property or assets, whether now owned or held or
hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive income or profits, except: 

(i)    Liens existing on the date hereof that secure Indebtedness listed on Schedule 5.6 hereto and any
renewals or extensions thereof; provided that the property covered thereby is not increased and any renewal or extension of the obligations secured or benefitted thereby is permitted pursuant to Section 9.3; 

(ii)    Liens for taxes not yet due or which are being contested in good faith and by appropriate
proceedings in the circumstances, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP; 

(iii)    carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or
other like Liens arising in the ordinary course of business which are not overdue for a period of more than 60 days or which are being contested in good faith and by appropriate proceedings in the circumstances, if adequate reserves with respect
thereto are maintained on the books of the applicable Person to the extent required in accordance with GAAP; 

(iv)    easements,
rights-of-way, restrictions and other similar encumbrances affecting real property and other minor defects or irregularities in title and other similar encumbrances
including the reservations, limitations, provisos and conditions, which, in the aggregate, are not substantial in amount, and which do not in any case materially detract from the value of the property of James Oxford, any James Oxford Entity or any
James Oxford Subsidiary, as applicable, or materially interfere with the ordinary conduct of the business of the applicable Person; 

(v)    statutory rights of set-off arising in the ordinary course
of business; 
 (vi)    with respect to any real property, immaterial title defects or irregularities
that do not, individually or in the aggregate, materially impair the use of such real property; 

(vii)    Liens on any cash earnest money deposits or other escrow arrangements made in connection with any
letter of intent or purchase agreement; and 
 (viii)     Liens arising under the Note Documentation.

 Section 9.3.    Indebtedness. (a) The Company will not directly or indirectly create, incur, assume,
guarantee, or otherwise become directly or indirectly liable with respect to any Priority Debt other than Indebtedness hereunder. 

(b)    The Company will not permit James Oxford, any James Oxford Entity or any James Oxford Subsidiary to, directly or
indirectly, create, incur, assume, guarantee, or otherwise become directly or indirectly liable with respect to any Indebtedness, except: 

(i)    Indebtedness outstanding on the date hereof that is listed on Schedule 5.6 hereto and any
refinancings, refundings, renewals or extensions thereof; provided the amount of 

  
 8 

 
such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and
expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder; and 

(ii)    other Indebtedness not permitted in clause (b)(i) above in an aggregate principal amount not to
exceed $5,000,000. 
 Section 9.4.    Dispositions. The Company will not and will not permit James Oxford,
any James Oxford Entity or any James Oxford Subsidiary to make any Disposition (other than the incurrence of any Lien not prohibited under Section 9.2), unless: 

(a)    with respect to any Casualty or Condemnation Event, the Company prepays or causes to be prepaid the Notes to the
extent required by Section 7.2; or 
 (b)    with respect to any other Disposition, (i) the Company, James Oxford, such
James Oxford Entity or such James Oxford Subsidiary receives consideration (A) at least equal to the fair market value (such fair market value to be determined (x) on the date of contractually agreeing to such Disposition and (y) in
good faith by the Company), of the property subject to such Disposition and (B) that is 100% in the form of cash; provided that for purposes of determining “cash” consideration, any assumption of Indebtedness or other
liabilities by buyer shall be deemed cash consideration, so long as seller is released from such Indebtedness or other liabilities, and (ii) the Company prepays or causes to be prepaid the Notes to the extent required by Section 7.2; or 

(c)     in the case of a Disposition of a Specified Property or a Disposition of all or any portion of the Equity
Interests of the owner of such Specified Property, (i) contemporaneously with such Disposition, real property with, or Equity Interests of an owner of real property with, similar cash flows and comparable fair market value to the Specified
Property Disposed of or owned by such Person whose Equity Interests are Disposed of is exchanged or otherwise substituted for such Specified Property or such owner of Specified Property and (ii) each Purchaser provides prior written consent to
such Disposition, which consent is not to be unreasonably withheld. 
 Upon the occurrence of any Disposition contemplated by Section 9.4(c), any real
property exchanged or substituted for a Specified Property shall become a “Specified Property” for all purposes under this Agreement and the other Note Documentation and such original Specified Property shall cease to be a “Specified
Property” under this Agreement and the other Note Documentation. 
 Section 9.5.    Sale and Leaseback
Transactions. The Company will not and will not permit James Oxford, any James Oxford Entity or any James Oxford Subsidiary to enter into any 

  
 9 

 
arrangement, directly or indirectly, whereby it shall sell or transfer any property (real or personal) used or useful in its business, whether now owned or hereinafter acquired, and thereafter
rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property sold or transferred (each such transaction, a “Sale/Leaseback Transaction”), unless (a) such
Disposition is permitted under Section 9.2, (b) the Company complies with Section 7.2, and (c) such lease is not required to be capitalized in accordance with GAAP and is not otherwise Indebtedness. 

Section 9.6.    Change in Nature of Business. The Company will not and will not permit James Oxford, any James
Oxford Entity or any James Oxford Subsidiary to engage in any material line of business substantially different from those lines of business currently conducted by the Company, James Oxford, such James Oxford Entity or such James Oxford Subsidiary
on the date hereof or any business substantially related or incidental or ancillary thereto. 

Section 10.    Events of Default. An “Event of Default” shall
exist if any of the following conditions or events shall occur and be continuing: 
 (a)    the Company defaults in the
payment of any principal, Late Charge or Make-Whole Amount on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or 

(b)    the Company defaults in the payment of any interest on any Note for more than 30 Business Days after the same
becomes due and payable; or 
 (c)    the Company defaults in the performance of or compliance with any term
contained herein (other than those referred to in Sections 10(a) or (b)) and such default is not remedied within 60 days after the Company receiving written notice of such default from any holder of a Note (any such written notice to be
identified as a “notice of default” and to refer specifically to this Section 10(c)); or 
 (d)    the
Company (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or
arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its
creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be
liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or 
 (e)    a court or other
Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company, James Oxford or any Material Subsidiary, as applicable, a custodian, receiver, trustee or other officer with similar powers with respect to
it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or
insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company, James Oxford or such Material Subsidiary, as applicable, or any such petition shall be filed against
the Company, James Oxford or such Material Subsidiary, as applicable, and such petition shall not be dismissed within 60 days; or 

(f)    one or more final judgments or orders for the payment of money aggregating in excess of $50,000,000, including any
such final order enforcing a binding arbitration decision, are rendered against James Oxford, any James Oxford Entity and/or any James Oxford Subsidiary and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed
pending appeal, or are not discharged within 60 days after the expiration of such stay. 

  
 10 

 Section 11.    Remedies on Default, Etc. 

Section 11.1.    Acceleration. (a) If an Event of Default with respect to the Company described in
Section 10(d) or (e) (other than an Event of Default described in clause (i) of Section 10(d) or described in clause (vi) of Section 10(d) by virtue of the fact that such clause encompasses clause (i) of
Section 10(d)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable. 

(b)    If any other Event of Default has occurred and is continuing, the Required Holders may at any time at its or their
option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable. 

(c)    If any Event of Default described in Section 10(a) or (b) has occurred and is continuing, any holder or
holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable. 

(d)    Upon any Notes becoming due and payable under this Section 11.1, whether automatically or by declaration, such
Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount determined in respect of such
principal amount, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The Company acknowledges, and the parties hereto agree, that each holder of a
Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the Company in the event that the Notes are
prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances. The right to receive the Make-Whole Amount upon any prepayment or acceleration is a
material inducement to the Purchasers’ decision to enter into this Agreement. 
 Section 11.2.    Other
Remedies. If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 11.1, the holder of any Note at the time
outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction
against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise; provided that only the Collateral Agent shall be entitled to exercise remedies with respect to
the Collateral pursuant to the Pledge Agreement. 
 Section 11.3.    Rescission. At any time after any Notes
have been declared due and payable pursuant to Section 11.1(b) or (c), the Required Holders, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all due or overdue
interest on the Notes, all principal of and Make-Whole Amount on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount and (to the extent
permitted by applicable law) any Late Charge or overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration,
(c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 16, and
(d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 11.3 will extend to or affect any subsequent Event of Default or Default or impair
any right consequent thereon. 
 Section 11.4.    No Waivers or Election of Remedies, Expenses, Etc.
No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right,

  
 11 

 
power or remedy conferred by this Agreement or any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available
at law, in equity, by statute or otherwise. The Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this
Section 11, including reasonable attorneys’ fees, expenses and disbursements. 

Section 12.    Collateral Matters. 

Section 12.1.    Collateral. At the time of the Closing, the Company shall grant to the Collateral Agent
for the benefit of the Purchasers a first lien, priority security interest in the Equity Interests it owns or at any time hereafter acquires in James Oxford and all proceeds thereof by executing and delivering the Pledge Agreement. 

Section 12.2.    Collateral Agent. 

(a)    Each Purchaser hereby appoints AIR OP to act on behalf of the Purchasers as collateral agent (in such capacity,
together with its successors and assigns, the “Collateral Agent”) under the Pledge Agreement and to exercise such powers and perform such duties as are expressly delegated to the Collateral Agent by the terms of this Agreement and
the Pledge Agreement, and AIR OP agrees to act as such. In taking any action pursuant to the provisions of the Pledge Agreement, and in exercising any rights or remedies set forth therein, the Collateral Agent shall act at the direction of the
Required Holders, and any such actions taken at the direction of the Required Holders shall be binding upon all Purchasers. Notwithstanding any provision to the contrary contained elsewhere in this Agreement and the Pledge Agreement, the duties of
the Collateral Agent shall be ministerial and administrative in nature, and the Collateral Agent shall not have any duties or responsibilities, except those expressly set forth herein and in the Pledge Agreement, nor shall the Collateral Agent have
or be deemed to have any trust or fiduciary relationship with any Purchaser, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement and the Pledge Agreement or otherwise exist
against the Collateral Agent. 
 (b)    Subject to the provisions of the Pledge Agreement, each Purchaser agrees that
the Collateral Agent shall execute and deliver the Pledge Agreement and all agreements, powers of attorney, documents and instruments incidental thereto, and act in accordance with its terms. 

(c)    The Collateral Agent shall have no obligation whatsoever to the Purchasers to assure that the Collateral exists or
is owned by the Company or is cared for, protected, or insured or has been encumbered, or that the Collateral Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected, maintained or enforced or are entitled to
any particular priority, or to determine whether all of the Company’s property constituting Collateral has been properly and completely listed or delivered, as the case may be, or the genuineness, validity, marketability or sufficiency thereof
or title thereto, or to exercise at all or in any particular manner or under any duty of care, disclosure, or fidelity, or to continue exercising, any of the rights, authorities, and powers granted or available to the Collateral Agent pursuant to
this Agreement or the Pledge Agreement, it being understood and agreed that in respect of the Collateral, or any act, omission, or event related thereto, the Collateral Agent shall have no other duty or liability whatsoever to the Purchasers as to
any of the foregoing. 
 (d)    The Collateral Agent may resign at any time by notice to each Purchaser and the Company,
such resignation to be effective upon the acceptance by each Purchaser of a successor agent to its appointment as Collateral Agent. If no successor collateral agent is appointed prior to the intended effective date of the resignation of the
Collateral Agent (as stated in the notice of resignation), the Collateral Agent may appoint, after consulting with each Purchaser, subject to the consent of the 

  
 12 

 
Company (which shall not be unreasonably withheld and which shall not be required during a continuing Event of Default), a successor collateral agent. Upon the acceptance of its appointment as
successor collateral agent hereunder, such successor collateral agent shall succeed to all the rights, powers and duties of the retiring Collateral Agent, and the term “Collateral Agent” shall mean such successor collateral agent, and the
retiring Collateral Agent’s appointment, powers and duties as the Collateral Agent shall be terminated. Promptly following the acceptance of the appointment of any successor Collateral Agent, the Company shall cause assignments of filings
existing on the date of such assignment related to the Collateral to be filed or recorded sufficient to reflect the successor Collateral Agent, as secured party of record in accordance with applicable law related to each portion of the Collateral.
After the retiring Collateral Agent’s resignation hereunder, the provisions of this Section 12.2 shall continue to inure to its benefit and the retiring Collateral Agent shall not by reason of such resignation be deemed to be released from
liability as to any actions taken or omitted to be taken by it while it was the Collateral Agent under this Agreement. 

Section 13.    Registration; Exchange; Substitution of Notes. 

Section 13.1.    Registration of Notes. The Company will maintain, in electronic format or otherwise, at its
principal place of business, a register of the names and addresses of the holder(s) of this Note and the principal amount (and stated interest) owing to each holder (the “Register”), and will update the Register to
reflect any permitted assignments or transfers subsequent to the date hereof. The Company will make payments of principal and interest as specified hereunder to the holder(s) named as such in the Register. The holder(s) shall notify the Company in
writing prior to any assignment, transfer or other disposition of this Note (or any portion hereof) or such holder(s)’ rights or interests hereunder, with such written notice to be delivered to the Company not later than one Business Day prior
to any such assignment, transfer or disposition and which notice shall specify the principal amount hereunder that is the subject of such assignment, transfer or disposition. Any assignment, transfer or other disposition of this Note (or any portion
thereof) shall be effective only upon appropriate entries with respect thereto being made in the Register, which shall be made promptly upon receipt of such written notice. Notwithstanding anything to the contrary herein, the entries in the Register
shall be conclusive, absent manifest error; the Company and each holder shall treat the person whose name is recorded in the Register as the owner of its portion of the Note for all purposes of this Note, notwithstanding notice to the contrary; and
the registered owner of this Note (or any portion hereof) as indicated on the Register shall be the party with the exclusive right to receive payment of any principal amount and accrued and unpaid interest thereon under this Note. The Register shall
be available for inspection by any holder, at any reasonable time and from time to time upon reasonable prior notice. This provision is intended to constitute a “book entry system” within the meaning of Treasury Regulations Section 5f.103-1(c)(1)(ii) and shall be interpreted consistently with such intent. 

Section 13.2.    Transfer and Exchange of Notes. Upon surrender of any Note to the Company at the address and
to the attention of the designated officer (all as specified in Section 17(iii)), for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly
executed by the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of each transferee of such Note or part thereof), within 10
Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the
unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of Schedule 1. Each such new Note shall be dated and bear interest from the date to
which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge
imposed in respect of any such transfer of Notes. 

  
 13 

 Section 13.3.    Replacement of Notes. Upon receipt by the
Company at the address and to the attention of the designated officer (all as specified in Section 17(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note, and 

(a)    in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it, or 

(b)    in the case of mutilation, upon surrender and cancellation thereof, within 10 Business Days thereafter, the Company
at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen,
destroyed or mutilated Note if no interest shall have been paid thereon. 

Section 14.    Payments on Notes. 

Section 14.1.    Place of Payment. Subject to Section 14.2, payments of principal, Make-Whole Amount and
interest becoming due and payable on the Notes shall be made in Denver, Colorado at the principal office of the Company in such jurisdiction. The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes
so long as such place of payment shall be either the principal office of the Company in the United States or the principal office of a bank or trust company in the United States. 

Section 14.2.    Payment by Wire Transfer. So long as any Purchaser shall be the holder of any Note, and
notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount interest and all other amounts becoming due hereunder by the method and
at the address specified for such purpose below such Purchaser’s name in the Purchaser Schedule, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such
purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such
Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1.
Prior to any sale or other Disposition of any Note held by a Purchaser, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such
Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2. 

Section 14.3.    Withholding. 

(a)    To the extent required by law, each party hereto hereby authorizes each other party (each, a “Withholding
Party”) to deduct or withhold any foreign, federal, state or local tax from any amount transferred under this Agreement. Each Withholding Party shall timely pay the full amount deducted or withheld to the relevant governmental authority in
accordance with the applicable law. Amounts so deducted or withheld, if any, shall be treated as paid to the applicable party in respect of which such amounts were deducted or withheld. 

(b)    By acceptance of any Note, the holder of such Note agrees that such holder will with reasonable promptness duly
complete and deliver to the Company, or to such other Person as may be 

  
 14 

 
reasonably requested by the Company, from time to time (a) in the case of any such holder that is a United States Person, such holder’s United States tax identification number or other
Forms reasonably requested by the Company necessary to establish such holder’s status as a United States Person under FATCA and as may otherwise be necessary for the Company to comply with its obligations under FATCA and (b) in the case of
any such holder that is not a United States Person, such documentation prescribed by applicable law (including as prescribed by section 1471(b)(3)(C)(i) of the Code) and such additional documentation as may be necessary for the Company to comply
with its obligations under FATCA and to determine that such holder has complied with such holder’s obligations under FATCA or to determine the amount (if any) to deduct and withhold from any such payment made to such holder. Nothing in this
Section 14.3 shall require any holder to provide information that is confidential or proprietary to such holder unless the Company is required to obtain such information under FATCA and, in such event, the Company shall treat any such
information it receives as confidential. 
 Section 15.    Survival of Representations
and Warranties; Entire Agreement. All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note or portion thereof or
interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser or any other holder of a Note. This Agreement, the Notes and
the Pledge Agreement embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof. 

Section 16.    Amendment and Waiver. 

Section 16.1.    Requirements. This Agreement, the Notes and the Pledge Agreement may be amended, and
the observance of any term hereof or of the Notes or the Pledge Agreement may be waived (either retroactively or prospectively), only with the written consent of the Company and the Required Holders, except that: 

(a)    no amendment or waiver of any of Sections 1, 2, 3, 4, or 5 hereof, or any defined term (as it is used therein),
will be effective as to any Purchaser unless consented to by such Purchaser in writing; and 
 (b)    no amendment or
waiver may, without the written consent of each Purchaser and the holder of each Note at the time outstanding, (i) subject to Section 11 relating to acceleration or rescission, change the amount or time of any payment or prepayment of
principal of, or reduce the rate or change the time of payment or method of computation of (x) interest on the Notes or (y) the Make-Whole Amount on the Notes, (ii) change the percentage of the principal amount of the Notes the holders of which
are required to consent to any amendment or waiver, or (iii) amend any of Section 7 and Sections 10(a), 10(b), 11 or 16. 

Section 16.2.    Binding Effect, Etc. Any amendment or waiver consented to as provided in this
Section 16 or the Pledge Agreement applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or
waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and any
holder of a Note and no delay in exercising any rights hereunder or under any Note or the Pledge Agreement shall operate as a waiver of any rights of any holder of such Note. 

  
 15 

 Section 16.3.    Notes Held by Company, Etc.
Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement, the
Pledge Agreement or the Notes, or have directed the taking of any action provided herein or in the Pledge Agreement or the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then
outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding. 

Section 17.    Notices. All notices and communications provided for hereunder
shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by an internationally recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with
return receipt requested (postage prepaid), or (c) by an internationally recognized overnight delivery service (charges prepaid). Any such notice must be sent: 

(i)     if to any Purchaser, to such Purchaser at the address specified for such communications in the
Purchaser Schedule, or at such other address as such Purchaser shall have specified to the Company in writing, 

(ii)     if to any other holder of any Note, to such holder at such address as such other holder shall have
specified to the Company in writing, or 
 (iii)     if to the Company, to the Company at its address set
forth at the beginning hereof to the attention of General Counsel of Apartment Investment and Management Company, or at such other address as the Company shall have specified to the holder of each Note in writing. 

Notices under this Section 17 will be deemed given only when actually received. 

Section 18.    Miscellaneous. 

Section 18.1.    Successors and Assigns. All covenants and other agreements contained in this Agreement
by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and registered assigns (including any subsequent holder of a Note) whether so expressed or not, except that, (i) subject to
Section 9.1, the Company may not assign or otherwise transfer any of its rights or Obligations hereunder or under the Notes without the prior written consent of each holder, which written consent is not to be unreasonably withheld, and
(ii) each holder may not assign or otherwise transfer any of its rights or obligations hereunder or under the Notes without the prior written consent of the Company, which consent is not to be unreasonably withheld; provided that
notwithstanding the foregoing, each holder may assign or otherwise transfer any of its rights or obligations hereunder or under the Notes without the prior written consent of the Company during an Event of Default. Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than the parties hereto and their respective successors and assigns permitted hereby) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

Section 18.2.    Accounting Terms. All accounting terms used herein which are not expressly defined in
this Agreement have the meanings respectively given to them in accordance with GAAP. Except as otherwise specifically provided herein, all computations made pursuant to this Agreement shall be made in accordance with GAAP. 

Section 18.3.    Severability. Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to
the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction. 
  

  
 16 

 Section 18.4.    Construction, Etc. Each covenant
contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to
excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly
by such Person. Defined terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words
“include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word
“shall”. Unless the context requires otherwise (a) any definition of or reference to any of the Note Documentation or any other agreement, instrument or other document herein shall be construed as referring to such agreement,
instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein) and, for purposes of the Notes, shall also include any such
notes issued in substitution therefor pursuant to Section 13, (b) subject to Section 18.1, any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words
“herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections and
Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement, and (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or
supplemented from time to time. 
 Section 18.5.    Counterparts. This Agreement may be executed in
any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the
parties hereto. 
 Section 18.6.    Governing Law. This Agreement shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that
would permit the application of the laws of a jurisdiction other than such State. 

Section 18.7.    Jurisdiction and Process; Waiver of Jury Trial. (a) The Company irrevocably
submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to
this Agreement or the Notes. To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such
court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in
an inconvenient forum. 
 (b)    The Company agrees, to the fullest extent permitted by applicable law, that a final
judgment in any suit, action or proceeding of the nature referred to in Section 18.7(a) brought in any such court shall be conclusive and binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the
United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by a suit upon such judgment. 

  
 17 

 (c)    The Company consents to process being served by or on behalf of
any holder of Notes in any suit, action or proceeding of the nature referred to in Section 18.7(a) by mailing a copy thereof by registered, certified priority or express mail (or any substantially similar form of mail), postage prepaid, return
receipt or delivery confirmation requested, to it at its address specified in Section 17 or at such other address of which such holder shall then have been notified pursuant to said Section. The Company agrees that such service upon receipt
(i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and
personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service. 

(d)    Nothing in this Section 18.7 shall affect the right of any holder of a Note to serve process in any manner
permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in
any other jurisdiction. 
 (e)    The parties hereto hereby waive trial by jury in any action brought on or with respect
to this Agreement, the Notes or any other document executed in connection herewith or therewith. 

  
 18 

 If you are in agreement with the foregoing, please sign the form of agreement on a
counterpart of this Agreement and return it to the Company, whereupon this Agreement shall become a binding agreement between you and the Company. 
  

			
	Very truly yours,
	
	Aimco JO Intermediate Holdings, LLC, a Delaware limited liability company, as the Company
		
	By:	 	  

		 	Title

  
 [Signature Page to
Mezzanine Note Agreement] 

			
	This Agreement is hereby accepted and agreed to as of the date hereof.
	
	AIMCO Properties, L.P., a Delaware limited partnership, as a Purchaser
	
	 By: AIMCO-GP, Inc., a Delaware corporation,

its general partner

		
	By:	 	
                     
                            

		 	Title
	
	AIMCO/Bethesda Holdings, Inc., a Delaware corporation, as a Purchaser
		
	By:	 	
                     
                            

		 	Title
	
	AIMCO Properties, L.P., a Delaware limited partnership, as the Collateral Agent
	
	 By: AIMCO-GP, Inc., a Delaware corporation,

its general partner

		
	By:	 	
                     
                            

		 	Title

  
 [Signature Page to
Mezzanine Note Agreement] 

 Schedule A 

Defined Terms 
 As used
herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term: 

“Affiliate” means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly
through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person; provided that neither AIMCO/Bethesda nor AIR OP shall be considered Affiliates of the Company, James Oxford, any James
Oxford Entity or any James Oxford Subsidiary for the purposes of the Note Documentation. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company. 

“Agreement” means this Mezzanine Note Agreement, including all Schedules attached to this Agreement. 

“AIMCO/Bethesda” means AIMCO/Bethesda Holdings, Inc., a Delaware corporation, as such entity may be renamed from time
to time. 
 “AIR OP” means AIMCO Properties, L.P., a Delaware limited partnership, as such entity may be renamed from time
to time. 
 “Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York
City, Baltimore or Denver are required or authorized to be closed. 
 “Capital Lease” means, at any time, a lease with
respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP. 

“Cash Collateral Account” means a “deposit account” as defined in the Uniform Commercial Code as in effect in the
State of New York, at a bank reasonably acceptable to the Collateral Agent in the name of the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary for the benefit of the Purchasers that is subject to a Cash Collateral
Account Control Agreement. 
 “Cash Collateral Account Control Agreement” means a deposit account control agreement in a
form reasonably satisfactory to the Collateral Agent, executed by the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary, as applicable, the Collateral Agent and the relevant depositary institution. 

“Casualty or Condemnation Event” means the receipt by the Company, James Oxford, any James Oxford Entity or any James
Oxford Subsidiary of any cash insurance proceeds or condemnation award payable by reason of theft, loss, physical destruction or damage, taking, expropriation or similar event with respect to any of their respective property. 

“Change of Control” means the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or
group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof) of Equity Interests in the Company pursuant to which Aimco OP L.P., a Delaware limited partnership, ceases to
directly or indirectly own through one or more wholly-owned subsidiaries all of the Equity Interests of the Company (other than the Company Initial Preferred Interests). 

“Closing” is defined in Section 3. 

“Code” means the Internal Revenue Code of 1986 and the rules and regulations promulgated thereunder from time to time.

 “Collateral” has the meaning set forth in the Pledge Agreement. 

“Collateral Agent” is defined in Section 12.2(a). 

  
 Schedule A 

 “Company” is defined in the first paragraph of this Agreement. 

“Company Initial Preferred Interests” means the up to 125 Series A preferred units of the Company issued in connection with
the Restructuring (as defined in the Separation Agreement). 
 “Control” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms “Controlled” and “Controlling” shall
have meanings correlative to the foregoing.  
 “Debtor Relief Laws” means the Bankruptcy Code of the United States,
or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions
from time to time in effect and affecting the rights of creditors generally. 
 “Default” means an event or condition the
occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default. 

“Default Rate” means that rate of interest per annum that is 2% above the rate of interest stated in clause (a) of the
first paragraph of the Notes. 
 “Disposition” or “Dispose” means (i) the sale, transfer, license,
lease or other disposition (including any sale and leaseback transaction) of any property by any Person, directly or indirectly, and whether voluntary or involuntary, including any sale, assignment, transfer or other disposal, with or without
recourse, of any notes or accounts receivable or any rights and claims associated therewith, (ii) a Casualty or Condemnation Event with respect to any property or asset, and (iii) the issuance or sale of Equity Interests, in the case of
each of clauses (i), (ii) and (iii), whether in a single transaction or series of related transactions. 
 “Dividing
Person” has the meaning assigned to it in the definition of “Division”. 
 “Division” means the division
of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement), which may or may not include the Dividing
Person and pursuant to which the Dividing Person may or may not survive. 
 “Equity Interests” means shares of capital
stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other similar rights entitling the holder thereof to
purchase or acquire any of the foregoing. 
 “Event of Default” is defined in Section 10. 

“FATCA” means (a) sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor
version that is substantively comparable and not materially more onerous to comply with), together with any current or future regulations or official interpretations thereof, (b) any treaty, law or regulation of any other jurisdiction, or
relating to an intergovernmental agreement between the United States of America and any other jurisdiction, which (in either case) facilitates the implementation of the foregoing clause (a), and (c) any agreements entered into pursuant to
section 1471(b)(1) of the Code. 

  
 A-2 

 “GAAP” means generally accepted accounting principles as in effect from
time to time in the United States of America. 
 “Governmental Authority” means 

 

	 	(a)	 the government of 

  

	 	(i)	 the United States of America or any state or other political subdivision thereof, or 

 

	 	(ii)	 any other jurisdiction in which the Company, James Oxford, any James Oxford Entity or any James Oxford
Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary, or 

 

	 	(b)	 any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or
pertaining to, any such government. 

 “Guaranty” means, with respect to any Person, any obligation
(except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner,
whether directly or indirectly, including obligations incurred through an agreement, contingent or otherwise, by such Person: 
  

	 	(a)	 to purchase such indebtedness or obligation or any property constituting security therefor;

  

	 	(b)	 to advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or
(ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation;

  

	 	(c)	 to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of
such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or 

  

	 	(d)	 otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof.

 In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or
other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor. 

“holder” means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the
Company pursuant to Section 13.1. 
 “Indebtedness” with respect to any Person means, at any time, without
duplication, 
  

	 	(a)	 its liabilities for borrowed money; 

 

	 	(b)	 its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable
arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property); 

  
 A-3 

	 	(c)	 (i) all liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases and
(ii) all liabilities which would appear on its balance sheet in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic Leases were accounted for as Capital Leases; 

 

	 	(d)	 all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person
(whether or not it has assumed or otherwise become liable for such liabilities); 

  

	 	(e)	 all its liabilities in respect of letters of credit or instruments serving a similar function issued or
accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money); 

  

	 	(f)	 the aggregate Swap Termination Value of all Swap Contracts of such Person; and 

 

	 	(g)	 any Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through
(f) hereof. 

 Indebtedness of any Person shall include all obligations of such Person of the character described in
clauses (a) through (g) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. 

“James Oxford” means James-Oxford Limited Partnership, a Maryland limited partnership. 

“James Oxford Entity” means any wholly-owned subsidiary through which James Oxford indirectly owns any James Oxford
Subsidiary. 
 “James Oxford Subsidiary” means, as of the Closing, each entity listed on Schedule 5.3; provided that
any entity exchanged or substituted for a James Oxford Subsidiary pursuant to the terms of this Agreement and the other Note Documentation shall be considered “James Oxford Subsidiary” for all purposes hereunder and thereunder. 

“Late Charge” means an amount equal to the delinquent amount then due under the Agreement multiplied by 5%. 

“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any
interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person (including in
the case of any Equity Interest, the granting of any option or agreement to sell) or any agreement to enter into any of the foregoing. 

“Make-Whole Amount” is defined in Section 7.8. 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition,
assets or properties of the Company, James Oxford, the James Oxford Entities or the James Oxford Subsidiaries taken as a whole, (b) the ability of the Company to perform its Obligations under this Agreement, the Notes and the Pledge Agreement,
or (c) the validity or enforceability of this Agreement, the Notes or the Pledge Agreement. 

  
 A-4 

 “Material Subsidiary” means, at any date of determination,
any Subsidiary of the Company that (i) as of the most recently ended fiscal quarter of the Company, has total assets with a value in excess of 10% of the consolidated total assets of the Company and its Subsidiaries for such date or
(ii) during the most recently completed four fiscal quarters of the Company, has gross revenues exceeding 10% of the consolidated gross revenues of the Company and its Subsidiaries, in each case determined in accordance with GAAP. 

“Maturity Date” is defined as January 31, 2024. 

“Minority Common Interests” means the common interests in James Oxford that continue to be owned by AIMCO/Bethesda
immediately after Closing. 
 “Net Cash Proceeds” means (1) the aggregate cash or cash equivalents proceeds received
by or on behalf of the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary in respect of any Disposition or consideration received in connection with a merger or consolidation, net of (A) direct costs incurred in
connection therewith (including, without limitation, reasonable and customary selling expenses, legal, accounting and investment banking fees and sales commissions), (B) taxes paid or payable as a result thereof, (C) amounts required to be
applied to the repayment of principal, premium (if any) and interest on Indebtedness secured by the assets subject to such Disposition as a result of such Disposition and (D) amounts provided in good faith as a reserve against (x) any
liabilities under any indemnification obligations or purchase price adjustment associated with such Disposition or merger or consolidation or (y) any other liabilities retained by the Company, James Oxford, the applicable James Oxford Entity or
the applicable James Oxford Subsidiary associated with the properties sold (provided that, to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds) and (2) the
aggregate cash or cash equivalents proceeds received by the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary in respect of the incurrence of Indebtedness or the issuance or contribution of Equity Interests, net of all
taxes paid or payable as a result thereof, together with any fees, commissions, costs and other customary expenses incurred in connection therewith; it being understood that “Net Cash Proceeds” shall include, without limitation, any cash
or cash equivalents received upon the sale or other Disposition of any non-cash consideration received by the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary in any Disposition,
merger or consolidation, issuance or contribution of Equity Interests or incurrence of Indebtedness. 
 “Net Insurance/Condemnation
Proceeds” means the aggregate cash or cash equivalents proceeds received by or on behalf of the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary in respect of any Casualty or Condemnation Event, net of
(1) direct costs incurred by the Company, James Oxford, such James Oxford Entity or such James Oxford Subsidiary in connection with the adjustment, settlement or collection of any claims of the Company, James Oxford, such James Oxford Entity or
such James Oxford Subsidiary in respect thereof (including, without limitation, reasonable and customary selling expenses, legal, accounting and investment banking fees and sales commissions), (2) taxes paid or payable as a result thereof,
(3) amounts required to be applied to the repayment of principal, premium (if any) and interest on Indebtedness secured by the assets subject to such Casualty or Condemnation Event as a result of such Casualty or Condemnation Event, (4) in
the case of a taking, the reasonable out-of-pocket costs of putting any affected property in a safe and secure position, and (5) amounts provided in good faith as a
reserve against (x) any liabilities under any indemnification obligations or purchase price adjustment associated with such Casualty or Condemnation Event or (y) any other liabilities retained by the Company, James Oxford, the applicable
James Oxford Entity or the applicable James Oxford Subsidiary associated with the properties sold (provided that, to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net
Insurance/Condemnation Proceeds). 

  
 A-5 

 “Note Documentation” means, collectively, this Agreement, the Notes, the
Pledge Agreement and each other amendment, agreement or instrument delivered by the Company in accordance with such documentation. 

“Notes” is defined in Section 1. 

“Obligations” means all advances to, and debts, liabilities and obligations of, the Company arising under the Note
Documentation, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against the
Company or any of its Affiliates of any proceeding under any Debtor Relief Law naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. 

“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated
organization, business entity or Governmental Authority. 
 “Pledge Agreement” means that certain Pledge Agreement, to be
dated the date hereof, by the Company in favor of the Collateral Agent for the benefit of the Purchasers. 
 “Priority
Debt” means Indebtedness of the Company secured by a Lien on the Collateral. 
 “property” or
“properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate. 

“Purchaser” or “Purchasers” means each of the purchasers that has executed and delivered this Agreement to
the Company and such Purchaser’s successors and assigns (so long as any such assignment complies with Section 13.2), provided, however, that any Purchaser of a Note that ceases to be the registered holder or a beneficial owner of
such Note as the result of a transfer thereof pursuant to Section 13.2 shall cease to be included within the meaning of “Purchaser” of such Note for the purposes of this Agreement upon such transfer. 

“Purchaser Schedule” means the Purchaser Schedule to this Agreement listing the Purchasers of the Notes and including their
notice and payment information. 
 “Register” is defined in Section 13.1. 

“Reinvestment Conditions” means, with respect to the reinvestment of Net Cash Proceeds or Net Insurance/Condemnation Proceeds
stemming from a Disposition, Casualty or Condemnation Event or merger, consolidation or similar event or transaction, that (i) no Default or Event of Default has occurred and is continuing, (ii) such reinvestment consists of the acquisition, lease,
construction or improvement of real property (within the meaning of Treasury Regulation section 1.856-3(d)) useful in the business of the Company or its Subsidiaries that the Company believes will enhance the value of or create value in the Company,
James Oxford or their respective Subsidiaries (as reasonably determined by the Company in good faith) and (iii) such reinvestment occurs within 180 days of receipt of such Net Cash Proceeds or Net Insurance/Condemnation Proceeds. 

“Remaining Collateral Value Test” means, with respect to a Disposition, Casualty or Condemnation Event or merger,
consolidation or similar event or transaction, that the aggregate fair market value of all real property (within the meaning of Treasury Regulation section 1.856-3(d)) owned by James Oxford and its Subsidiaries after giving effect to such
Disposition, Casualty or Condemnation Event or merger, consolidation or similar event or transaction exceeds (after subtracting senior secured Indebtedness) the then-outstanding principal amount of the Notes. 

“Required Holders” means at any time on or after the Closing, the holders of at least 50 in principal amount of the Notes at
the time outstanding (exclusive of Notes then owned by the Company or any of its Affiliates). 
 “Responsible Officer”
means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement. 

“Sale/Leaseback Transaction” is defined in Section 9.6. 

“SEC” means the Securities and Exchange Commission of the United States of America. 

“Securities Act” means the Securities Act of 1933 and the rules and regulations promulgated thereunder from time to time in
effect. 

  
 A-6 

 “Senior Financial Officer” means the chief financial officer, principal
accounting officer, treasurer or comptroller of the Company. 
 “Separation Agreement” means that certain Separation and
Distribution Agreement, dated as of             , 2020, by and among Apartment Investment and Management Company, a Maryland corporation, Aimco OP L.P., a Delaware limited partnership,
Apartment Income REIT Corp., a Maryland corporation, and AIR OP. 
 “Specified Property” means, as of the Closing,
each property listed in the column titled “Address of Specified Property Owned by such James Oxford Subsidiary” on Schedule 5.3; provided that any property exchanged or substituted for a Specified Property pursuant to the terms of
this Agreement and the other Note Documentation shall be considered “Specified Property” for all purposes hereunder and thereunder. 

“Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such
first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions)
of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries
(unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). 

“Swap Contract” means (a) any and all interest rate swap transactions, basis swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward foreign exchange transactions,
cap transactions, floor transactions, currency options, spot contracts or any other similar transactions or any of the foregoing (including any options to enter into any of the foregoing), and (b) any and all transactions of any kind, and the
related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc. or any International Foreign Exchange Master Agreement. 

“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any
legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and
(b) for any date prior to the date referenced in clause (a), the amounts(s) determined as the mark-to-market values(s) for such Swap Contracts, as determined based
upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts. 

“Synthetic Lease” means, at any time, any lease (including leases that may be terminated by the lessee at any time) of any
property (a) that is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased for U.S. federal income tax purposes, other than any such lease under which
such Person is the lessor. 
 “Transferred Interests” is defined in Section 2. 

“United States Person” has the meaning set forth in Section 7701(a)(30) of the Code. 

“Withholding Party” is defined in Section 14.3(a). 

  
 A-7 

 Schedule 1 

Form of Note 
 NO
TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THIS NOTE OR ANY INTEREST OR PARTICIPATION THEREIN MAY BE MADE EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (B) PURSUANT TO
AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS AND, IN THE CASE OF THIS CLAUSE (B), PROVIDED THAT, IF THE COMPANY REQUESTS, THE COMPANY RECEIVES AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY
SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT. 
 Aimco JO Intermediate Holdings, LLC 

5.2% Secured Mezzanine Note Due January 31, 2024 
  

			
	No.             	  	 

            

	$             	  	PPN             

 For value received, the undersigned, Aimco JO Intermediate Holdings, LLC (herein called the
“Company”), a limited liability company organized and existing under the laws of the State of Delaware, hereby promises to pay
to                    (the “Purchaser”), or registered assigns, the principal sum of
                     U.S. dollars on January 31, 2024 (the “Maturity Date”), with interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid balance hereof at the rate of 5.2% per annum from the date hereof, payable quarterly, on the first day of January, April,
July and October in each year, commencing on April 1, 2021, and on the Maturity Date, until the principal hereof shall have been paid in full. In addition, the Company agrees to pay a Make-Whole Amount, Late Charges and interest at the Default
Rate, as provided in the Note Agreement referenced below. 
 Payments of principal of, interest on and any Make-Whole Amount with respect to
this Note are to be made in lawful money of the United States of America at the Denver, Colorado office of the Company or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note
Agreement referred to below. 
 This Note is one of a series of Secured Mezzanine Notes (herein called the “Notes”) issued
pursuant to the Mezzanine Note Agreement, dated as of             , 2020 (as from time to time amended, the “Note Agreement”), between the Company and the respective
Purchasers named therein and is entitled to the benefits thereof. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Agreement. 

This Note is a registered Note and, as provided in the Note Agreement, upon surrender of this Note for registration of transfer accompanied by
a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee. Prior
to due presentment for registration of transfer, the Company may treat the Person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any
notice to the contrary. 

 The Company will make required payments of principal on the dates and in the amounts
specified in the Note Agreement. This Note is subject to mandatory prepayment at the times and on the terms specified in the Note Agreement. This Note may not be prepaid at the option of the Company at any time prior to the Maturity Date. The
Company’s agreement to a prohibition on optional prepayments is a material inducement to the Purchaser’s decision to enter into the Note Agreement. The Company’s Obligations under this Note and the Note Agreement are secured pursuant
to the Pledge Agreement. 
 If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become
due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Agreement. 

This Note shall be construed and enforced in accordance with, and the rights of the Company and the holder of this Note shall be governed by,
the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than
such State. 
  

			
	Aimco JO Intermediate Holdings, LLC
		
	By:	 	
                     

		 	TitleDocument

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY, NEWARK, NEW JERSEY

Corporate Address:                               Service Office Address:
[213 Washington Street                            [P.O. Box 7960
Newark, New Jersey 07102]                        Philadelphia, PA 19176
                                     Toll Free: 1-888-PRU-2888
                                    Website:www.prudential.com]
                        
Please read this contract (the “Annuity”) carefully; it is a legal contract between you and Pruco Life Insurance Company of New Jersey.  Unless you direct otherwise, we will pay the named Owner(s), on the Annuity Payment Date, the first of a series of Annuity Payments, the frequency, period, and dollar amounts of which are determined in accordance with the terms and conditions of the annuity option payable, provided that both you and the Annuitant(s) are then living.

This Annuity is issued subject to its provisions and in consideration of any Purchase Payments you make and we accept. 

RIGHT TO CANCEL:  You may cancel this Annuity for a refund by notification to us in Good Order or by returning the Annuity to our Service Office or to the representative who sold it to you within 10 days after you receive it (60 days if the Annuity is being issued as a replacement for another annuity contract or a life insurance policy).  The Annuity can be mailed or delivered either to us, at our Service Office, or to the representative who sold it to you.  Return of this Annuity by mail is effective on being postmarked, properly addressed and postage prepaid.

The amount of the refund will equal the Account Value as of the Valuation Day we receive the returned Annuity at our Service Office or the cancellation request in Good Order, plus any fees, charges or Tax Charges deducted from the Purchase Payment upon allocation to the Annuity or imposed under the Annuity.  

Signed for Pruco Life Insurance Company of New Jersey:

                       

                
[                             ]    [                                        ]
Secretary        President

NON-PARTICIPATING INDIVIDUAL FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY

During the Accumulation Period any payments and values based on the Sub-account(s) are not guaranteed and will increase or decrease, based on their investment performance.  We may limit or reject additional Purchase Payments in a non-discriminatory manner in order to manage our financial risk if market and/or economic conditions decline.

Payout options are specified in the Annuity.  Other payout options may be made available. 
1
P-VA/IND(11/20)-NY

TABLE OF CONTENTS

						
	ANNUITY SCHEDULE
ANNUITY TABLES
	3
4

	DEFINITIONS	5
	RIDERS OR ENDORSEMENTS	6
	ALLOCATION OF ACCOUNT VALUE	6
	OPERATION OF THE SEPARATE ACCOUNT(S)	7
	CHARGES	8
	RIGHTS AND DESIGNATIONS	9
	PURCHASE PAYMENTS	10
	ACCOUNT VALUE	11
	ALLOCATION RULES	12
	DISTRIBUTIONS	13
	DEATH BENEFIT	14
	ANNUITY PAYOUT OPTIONS	16
	GENERAL PROVISIONS	19
		

2
P-VA/IND(11/20)-NY

ANNUITY SCHEDULE

ANNUITY NUMBER: [001-00001]    ISSUE DATE:  [March 1, 2013]

TYPE OF BUSINESS:  [Non-Qualified]                         ISSUE STATE:

OWNER:  [John Doe]               DATE OF BIRTH:  [October 21, 1972]    SEX:  [Male]

[OWNER:  [Mary Doe]               DATE OF BIRTH:  [October 15, 1972]    SEX:  [Female]]

ANNUITANT:  [John Doe]        DATE OF BIRTH:  [October 21,1972]    SEX:  [Male]

[JOINT ANNUITANT:  [Mary Doe]        DATE OF BIRTH:  [January 15, 1952]    SEX:  [Female]]

[CONTINGENT ANNUITANT: [Mary Doe]    DATE OF BIRTH: [January 15, 1952]    SEX: [Female]]

PURCHASE PAYMENT:  [$10,000]

PURCHASE PAYMENT AGE LIMITATION:  [Purchase Payments may be accepted up to and including the day prior to the oldest Owner’s [86th] birthday (the Annuitant’s [86th] birthday if the Annuity is owned by an entity), unless otherwise required by applicable law or regulation to maintain the tax status of this Annuity.]  We may further limit or reject additional Purchase Payments in order to manage our financial risk if market and/or economic conditions decline.

MINIMUM ADDITIONAL PURCHASE PAYMENT:  [$100]

MINIMUM ADDITIONAL PURCHASE PAYMENT UNDER AUTOMATIC PURCHASE PLANS:  [$50]

CONTINGENT DEFERRED SALES CHARGE:    [None]
        
MINIMUM WITHDRAWAL AMOUNT:  [$100]

MINIMUM SURRENDER VALUE AFTER A PARTIAL WITHDRAWAL:  [$2,000]

MINIMUM INVESTMENT OPTION AMOUNT:  [$50] 

INSURANCE CHARGE:

    MORTALITY AND EXPENSE RISK CHARGE: [

    For Net Purchase Payments less than $1,000,000 the Insurance Charge is [X.XX%]
    
    For Net Purchase Payments of $1,000,000 or more the Insurance Charge is reduced to [X.XX%]]

    ADMINISTRATION CHARGE: [0.15%]

ANNUAL MAINTENANCE FEE:  [Lesser of $50 or 2% of Account Value.  The fee is waived if the sum of the Purchase Payments at the time the Fee is due is greater than or equal to $100,000.]  

FUND ACCESS CHARGE:  The Fund Access Charge will not exceed [0.70]%.

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P-VA/IND(11/20)-NY

ANNUITY SCHEDULE (Continued)

Sub-Account                                                         Fund Access Charge

[American Funds Insurance Series® Blue Chip Income and Growth Fund - Class 1        [0.35%]
American Funds Insurance Series® Bond Fund - Class 1                                 [0.35%]
American Funds Insurance Series® Growth Fund - Class 1                    [0.35%]    
American Funds Insurance Series® Growth-Income Fund - Class 1                [0.35%]
American Funds Insurance Series® U.S. Government/AAA-Rated Securities Fund - Class 1     [0.35%]
American Funds Insurance Series® Asset Allocation Fund - Class 1                [0.35%]
American Funds Insurance Series® Ultra-Short Bond Fund - Class 1                [0.35%]
DFA VA Global Moderate Allocation Portfolio                            [0.35%]
VA International Small Portfolio                                             [0.35%]
VA International Value Portfolio                                             [0.35%]
VA Global Bond Portfolio                                    [0.35%]
VA Short-Term Fixed Portfolio                                    [0.35%]
VA U.S. Large Value Portfolio                                    [0.35%]
VA U.S. Targeted Value Portfolio]                                [0.35%]

TRANSFER FEE:  [$10 per transfer after the twentieth transfer in any Annuity Year.]

MINIMUM TRANSFER AMOUNT:  [$50.  We may waive the Minimum Transfer Amount.]

MAXIMUM NUMBER OF TRANSFERS:  Currently, there are no limits on the number of transfers that can be made among Sub-accounts in an Annuity Year.  We may restrict the number of transfers among Sub-accounts per Annuity Year, but in no event will the Maximum Number of Transfers be less than [20].

LATEST AVAILABLE ANNUITY DATE:  [The first day of the calendar month next following the oldest Owner’s or Annuitant’s 95th birthday.]

EARLIEST AVAILABLE ANNUITY DATE:  Thirteen months from the Issue Date

MINIMUM ANNUITY PAYMENT:  $20 per month

MINIMUM SURRENDER VALUE AT ANNUITIZATION:  [$2,000]

MISSTATEMENT OF AGE OR SEX INTEREST RATE [3%]

ANNUITY TABLES

The rates in Tables 1 and 2 below are applied to the Account Value less any applicable Tax Charges, on
the Annuity Date to compute the minimum amount of the annuity payment for the payout options
described below. Table 1 is used to compute the amount of the annuity payment under Option 1
(Payments for Life with a Period Certain). Table 2 is used to compute the minimum initial annuity payment
under Option 2 (Joint and Last Survivor).  You may obtain additional information on your Annuity Options including a illustrative quote by contacting out Service Office Address referenced on the cover page of this Annuity.

BASIS OF COMPUTATION FOR ANNUITY OPTIONS: We use an interest rate of 0.50% per year. The
adjusted age is the Annuitant’s age as of the Annuitant’s last birthday prior to the date on which the first
payment is due, adjusted as shown in the “Translation of Adjusted Age” table below. The actuarial basis
4
P-VA/IND(11/20)-NY

of the Annuity Options is the Annuity 2000 (ANB) valuation mortality table, with four-year age setback and
projected mortality improvement factors (modified Scale G) projected from the age at annuitization to the
age at which the probability of survival is needed in the calculation of the annuity payment. We used modified Scale G to extend morality improvements to the uppermost ages of the mortality table.

ANNUITY SCHEDULE (Continued)

												
	Translation of Adjusted Age
	Calendar Year in Which First Payment Is
Due
	Adjusted Age	Calendar Year in Which First Payment Is Due	Adjusted Age
	2020 through 2029	Actual Age minus 2	2070 through 2079	Actual Age minus 7
	2030 through 2039	Actual Age minus 3	2080 through 2089	Actual Age minus 8
	2040 through 2049	Actual Age minus 4	2090 through 2099	Actual Age minus 9
	2050 through 2059	Actual Age minus 5	2100 through 2109	Actual Age minus 10
	2060 through 2069	Actual Age minus 6		

AMOUNT OF MONTHLY PAYMENT FOR EACH $1,000 APPLIED

																											
	ANNUITY OPTION 1 Table – Payments for Life with 120 Months Period Certain
	Adjusted Age	

Male
	

Female
	Adjusted Age	

Male
	

Female
	Adjusted Age	

Male
	

Female

	41	1.87	1.73	61	3.02	2.72	81	5.95	5.51
	42	1.91	1.77	62	3.11	2.80	82	6.15	5.73
	43	1.95	1.8	63	3.21	2.88	83	6.34	5.95
	44	1.99	1.83	64	3.31	2.97	84	6.53	6.17
	45	2.03	1.87	65	3.42	3.06	85	6.72	6.38
	46	2.07	1.90	66	3.53	3.16	86	6.90	6.60
	47	2.12	1.94	67	3.65	3.27	87	7.07	6.80
	48	2.17	1.98	68	3.78	3.38	88	7.24	7.00
	49	2.22	2.03	69	3.91	3.49	89	7.39	7.19
	50	2.27	2.07	70	4.05	3.62	90	7.54	7.36
	51	2.32	2.12	71	4.19	3.75	91	7.67	7.52
	52	2.38	2.16	72	4.34	3.89	92	7.80	7.67
	53	2.44	2.21	73	4.50	4.03	93	7.91	7.80
	54	2.50	2.27	74	4.67	4.19	94	8.02	7.92
	55	2.56	2.32	75	4.84	4.35	95	8.11	8.03
	56	2.63	2.38	76	5.01	4.53			
	57	2.70	2.44	77	5.19	4.71			
	58	2.77	2.51	78	5.38	4.90			
	59	2.85	2.57	79	5.57	5.10			
	60	2.94	2.64	80	5.76	5.30			

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P-VA/IND(11/20)-NY

ANNUITY SCHEDULE (Continued)

																																				
	ANNUITY OPTION 2 Table - Joint and Last Survivor
	Male Adjusted Age	Female Adjusted Age
	45	50	55	60	65	70	75	80	85	90	95
	45	1.71	1.79	1.86	1.92	1.96	1.99	2.01	2.02	2.03	2.03	2.03
	50	1.76	1.87	1.98	2.07	2.14	2.19	2.22	2.25	2.26	2.27	2.27
	55	1.80	1.94	2.08	2.21	2.32	2.41	2.48	2.52	2.55	2.56	2.57
	60	1.82	1.99	2.16	2.34	2.51	2.65	2.77	2.85	2.90	2.93	2.95
	65	1.84	2.02	2.22	2.44	2.68	2.9	3.09	3.24	3.35	3.41	3.44
	70	1.85	2.04	2.26	2.53	2.82	3.13	3.44	3.70	3.90	4.03	4.10
	75	1.86	2.05	2.29	2.58	2.92	3.32	3.76	4.18	4.54	4.81	4.97
	80	1.86	2.06	2.31	2.61	3.00	3.47	4.03	4.64	5.24	5.73	6.07
	85	1.87	2.07	2.32	2.63	3.04	3.56	4.22	5.03	5.92	6.75	7.40
	90	1.87	2.07	2.32	2.64	3.06	3.62	4.35	5.31	6.49	7.74	8.86
	95	1.87	2.07	2.33	2.65	3.08	3.65	4.43	5.50	6.91	8.60	10.29

VARIABLE SEPARATE ACCOUNT(S): Pruco Life of New Jersey Flexible Premium Variable Annuity Account

RIDERS AND ENDORSEMENTS MADE A PART OF THE ANNUITY ON THE ISSUE DATE:
[Individual Retirement Annuity Endorsement]

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P-VA/IND(11/20)-NY

7
P-VA/IND(11/20)-NY

DEFINITIONS

Account Value: The total value of all allocations to the Investment Options on any Valuation Day.

Accumulation Period:  The period of time from the Issue Date through the last Valuation Day immediately preceding the Annuity Date.

Adjusted Purchase Payment(s):  Purchase Payment(s) we receive less any fees, charges or Tax Charges, we deduct prior to allocation to the Investment Options you select.

Annuitant/Joint Annuitant:  The natural person(s) named in the Annuity Schedule upon whose life or lives the Annuity Payments are based.

Annuity Date:  The date as of which the Account Value, less any applicable Tax Charges, is applied to an Annuity Option which will begin the Payout Period. The Earliest Available Annuity Date and Latest Available Annuity Date are shown in the Annuity Schedule.

Annuity Payment Date:  The date the first annuity payment is payable.

Annuity Year:  The twelve month period beginning on the Issue Date and continuing through and including the day immediately preceding the first anniversary of the Issue Date.  Subsequent Annuity Years begin on the anniversary of the Issue Date and continue through and include the day immediately preceding the next anniversary of the Issue Date.

Beneficiary(ies):  The natural person(s) or entity(ies) designated as the recipient of the Death Benefit, or to whom any payments may be paid in accordance with the “Annuity Payout Options” section of the Annuity. 

Code or Internal Revenue Code:  The Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated thereunder.

Decedent:  The person upon whose death the Death Benefit is payable.

Due Proof of Death:  Due Proof of Death is satisfied when we receive all of the following in Good Order: (a) a death certificate or documentation acceptable to us, (b) all documentation we require or which is mandated by applicable law or regulation in relation to the payment of death proceeds; and (c) any applicable election of the method of payment of the Death Benefit, if not previously elected by the Owner(s), by at least one Beneficiary.

General Account: Our general investment account which contains all of our assets with the exception of the Variable Separate Account(s) and other segregated asset accounts.

Good Order:  Good Order is the standard that we apply when we determine whether an instruction is satisfactory.  An instruction will be considered in Good Order if it is received at our Service Office: (a) in a manner that is satisfactory to us such that it is sufficiently complete and clear that we do not need to exercise any discretion to follow such instruction and complies with all relevant laws and regulations; (b) on specific forms, or by other means we then permit (such as via telephone or electronic transmission); and/or (c) with any signatures and dates as we may require.  We will notify you if an instruction is not in Good Order.

Investment Options: A Sub-account or other option available as of any given time to which Account Value may be allocated.

Issue Date:  The effective date of your Annuity, as shown in the Annuity Schedule. 
P-VA/IND (11/20)-NY    7

Net Purchase Payments: As of the close of business on any Valuation Day, the sum of all Purchase Payments applied to the Annuity less the sum of all Partial Withdrawals and Required Minimum Distributions since the Issue Date
 
Owner(s):  The natural person(s) or entity shown as Owner in the Annuity Schedule unless later changed.

Payout Period:  The period starting on the Annuity Date and during which Annuity Payments are made.

Period Certain:  A payout period for a specific number of years. 

Purchase Payment:  A cash consideration in currency of the United States of America given to us in exchange for the rights, privileges and benefits outlined in this Annuity 

Service Office Address:  The location shown on the cover page of the Annuity where all requests and payments regarding this Annuity are to be sent.  We refer to this as our “Service Office.”  The Service Office Address may be changed at any time.  We will notify you in advance of any change in address.

Sub-account:  A division of the Variable Separate Account(s).

Surrender Value:  The Account Value less any applicable Tax Charges, any charges assessable as a deduction from the Account Value for any optional benefits provided by rider or endorsement, and any applicable Annual Maintenance Fee.

Tax Charges:  The Annuity may include a charge generally intended to approximate any applicable premium tax, retaliatory tax and other taxes imposed on us.  In some cases the Tax Charges may be more, and in some cases less, than the actual amount of taxes we are required to pay with respect to a particular Annuity.  

Unit:  A share of participation in a Sub-account used to calculate your Account Value prior to the Annuity Date.

Unit Price:  The value of each Unit of a Sub-account on a Valuation Day.

Valuation Day:  Every day the New York Stock Exchange is open for trading or any other day that the Securities and Exchange Commission requires mutual funds or unit investment trusts to be valued.

Valuation Period:  The period of time between the close of business of the New York Stock Exchange on successive Valuation Days.

Variable Separate Account(s):  The variable separate account(s) shown in the Annuity Schedule.

we, us, our:  Pruco Life Insurance Company of New Jersey.

you, your:  The Owner(s) shown in the Annuity Schedule.

RIDERS OR ENDORSEMENTS

One or more riders or endorsements may be attached and made part of your Annuity as of the Issue Date or may be added later if available for election at the time you so request.  Such riders or endorsements may contain additional or different provisions which may amend or replace the definitions and other provisions in your Annuity.  Such riders or endorsements may also contain definitions and other provisions 
P-VA/IND(11/20)-NY    8

applicable to an optional benefit you have elected. Such optional benefit may impact certain definitions and other provisions of this Annuity, including, but not limited to, Investment Options, Surrender, withdrawals, transfers, Spousal Continuation, and the Death Benefit.  Charges may also apply to any benefit provided by rider or endorsement.    A schedule supplement may also contain additional fields specific to any such benefit.  Please refer to any applicable rider, endorsement and their respective schedule supplements for details regarding the impact on any provisions in this Annuity.  Riders or endorsements pertaining to a benefit program, Investment Option, or special program available as of the Issue Date of this Annuity may not be available in the future.

ALLOCATION OF ACCOUNT VALUE

You may maintain Account Value in the Investment Options we make available, subject to the limits set out in this Annuity.  The variable Investment Options available for allocation of Account Value as of the Issue Date are the Sub-accounts of the Variable Separate Account shown in the Annuity Schedule.  The minimum amount you can allocate to an Investment Option (“the Minimum  Investment Option Amount”) is shown in the Annuity Schedule.  You may transfer Account Value between such options, subject to our allocation and transfer rules as explained in the “Allocation Rules” section of the Annuity. The “Minimum Transfer Amount” is shown in the Annuity Schedule.  Your transfer request must be received by us in Good Order.  Transfers may be subject to a Transfer Fee.

OPERATION OF THE SEPARATE ACCOUNT(S)

General:  The assets supporting our obligations under the Annuity may be held in various accounts, depending on the obligation being supported.  Assets supporting our obligations during the Accumulation Period are held in separate accounts.  In the Payout Period, assets supporting Annuity Payments are held in our General Account.

Separate Accounts:  We are the legal owner of assets in the separate accounts.  Income, gains and losses, whether or not realized, from assets allocated to these separate accounts, are credited to or charged against each such separate account in accordance with the terms of the annuities supported by such assets without regard to our general corporate operations or other income, gains or losses, or to the income, gains or losses in any other of our separate accounts.  We will maintain assets in each separate account with a total market value at least equal to the reserve and other liabilities we must maintain in relation to the annuity obligations supported by such assets.  These assets shall not be chargeable with liabilities arising out of any other business we conduct.

Variable Separate Account(s):  The separate account(s) to which we allocate assets supporting our obligations under this Annuity  is the Variable Separate Account(s).  This separate account(s) consists of the Sub-accounts we make available with this Annuity as well as multiple Sub-Accounts made available in other annuities issued by us.  The Variable Separate Account(s) was established by us pursuant to New Jersey law.  The Variable Separate Account(s) may also hold assets of other annuities issued by us with values and benefits that vary according to the investment performance of the Sub-accounts.  

The amount of our obligations in relation to allocations to the Variable Separate Account(s) is based on the investment performance of the Sub-accounts.  However, guarantees provided under the Annuity, including any optional benefit riders attached and made a part of it which exceed the market value of assets allocated to the Variable Separate Account(s), are our general corporate obligations.

The Variable Separate Account(s) is registered with the Securities and Exchange Commission ("SEC") under the Investment Company Act of 1940 (the "1940 Act") as a unit investment trust, which is a type of investment company.  This does not involve any supervision by the SEC of the investment policies, management or practices of the Variable Separate Account(s).

P-VA/IND(11/20)-NY    9

Sub-accounts may invest in underlying mutual funds or portfolios.  We may change the investment policy of any or all Sub-accounts, add Sub-accounts, eliminate Sub-accounts, combine Sub-accounts, restrict or prohibit additional allocations to certain Sub-accounts, limit access to Sub-accounts, or substitute underlying mutual funds or portfolios of underlying mutual funds, subject to any required regulatory approvals.  Please refer to the “Reserved Rights” section for additional information.  Values and benefits based on allocations to the Sub-accounts will vary with the investment performance of the underlying mutual funds or fund portfolios, as applicable.  We do not guarantee the investment results of any Sub-account.

We may transfer assets of the Variable Separate Account(s), which we determine to be associated with the class of contracts to which this Annuity belongs, to another Variable Separate Account(s).  If this type of transfer is made, the term "Variable Separate Account(s)" as used in this Annuity, shall include the Variable Separate Account(s) to which the assets were transferred.  We will obtain prior approval from the Superintendent of Financial Services, as well as any other required approvals, before making such transfer of assets.

CHARGES

General:  The charges which are, or may be, deducted from your Annuity include, but are not limited to: the Insurance Charge, the Annual Maintenance Fee, Tax Charges, a Transfer Fee, and any charges for any benefits provided by rider or endorsement.

Annual Maintenance Fee:  This is a fee deducted on each anniversary of the Issue Date occurring on or before the Annuity Date, and upon surrender.  However, we will waive the Annual Maintenance Fee due at surrender if the surrender occurs within 30 days after an Annual Maintenance Fee was last deducted.  The fee is shown in the Annuity Schedule.  We will waive all or a portion of this fee, if we are required by law or regulation, to meet any minimum nonforfeiture requirements.  We will also waive this fee after the Annuity Date, and when a Death Benefit is determined, unless Spousal Continuation occurs.  We may waive this fee at any other time on a non-discriminatory basis.

As of the Valuation Day the Annual Maintenance Fee is due, the fee is deducted pro-rata from the Account Value of all Sub-accounts to which your Account Value is allocated.  

Fund Access Charge:  The Fund Access Charge is applied in addition to any other Charges described in this Annuity and will be included in the calculation of the net investment factor described in the Account Value section of this Annuity.  The amount of any applicable Fund Access Charge corresponding to the portion of the 365 day year (366 for a leap year) that is in the current Valuation Period is added to item (c) in the calculation of the net investment factor in the Account Value section of this Annuity.  

We may change the list of Sub-Accounts on the Annuity Schedule to which the Fund Access Charge applies, by adding or deleting Sub-Accounts, or  we may change the Fund Access Charge for such Sub-Accounts.  We will notify you 30 days in advance of the date of any such changes.  

Transfer Fee:  The Transfer Fee is shown in the Annuity Schedule.  The fee is deducted pro-rata from all Sub-accounts in which you maintain Account Value immediately subsequent to the transfer.  Transfers made through any electronic method or program we specify are not counted in calculating any applicable Transfer Fee.  For purposes of calculating the Transfer Fee, all transfers made on the same Valuation Day count as one transfer.

Insurance Charge: The Insurance Charge consists of the Mortality and Expense Risk Charge and Administration Charge and is assessed on each Valuation Day as part of the net investment factor at the daily equivalent of the rate shown in the Annuity Schedule, certain endorsements and the Schedule Supplements of certain riders made a part of this Annuity.  See the “Account Value” section of this Annuity for a description of how the Insurance Charge is deducted. 
P-VA/IND(11/20)-NY    10

RIGHTS AND DESIGNATIONS

You may exercise the rights, options and privileges granted in this Annuity or permitted by us.  Your rights to make future changes under this Annuity terminate as of the date we receive notice of death of the Decedent. No rights of survivorship are provided except as provided herein.

You make certain designations that apply to the Annuity.  These designations are and to various regulatory or statutory requirements, depending on the use of the Annuity.  These designations may include an Owner(s), an Annuitant(s), a Contingent Annuitant(s), a Beneficiary(ies), and a contingent Beneficiary(ies).  Certain designations are required, as indicated below.  

Owner(s):  An Owner must be named.  You may name up to two Owners.  If you name two Owners, all rights reserved to the Owners are then held equally by both Owners.  We require the consent in Good Order of both Owners and any other party with current vested rights for any transaction for which we require the written consent of any Owner.  However, if the Owners each provide us with instructions in Good Order, we will permit an Owner to act independently on behalf of both Owners with respect to those transactions which would otherwise require the written consent of both Owners.  We will send all communications to the address of the first named Owner.

Annuitant/Joint Annuitant/Contingent Annuitant:  You must name an Annuitant.  You may name a Joint Annuitant or a Contingent Annuitant(s) depending upon your use of the Annuity.  If an Annuitant who is not an Owner predeceases any Owner who is a natural person, not an entity and:

(a)a Joint Annuitant is designated and alive, the Joint Annuitant becomes the sole Annuitant; or

(b)    no Joint Annuitant is designated and alive, the designated Contingent Annuitant becomes the sole Annuitant; or

(c) no Contingent Annuitant is designated or alive, the Owner becomes the sole Annuitant; or

(d)    no Joint Annuitant or Contingent Annuitant is designated or alive and there are multiple Owners who are natural persons, the oldest of such Owners becomes the sole Annuitant.

Beneficiary(ies):  The Death Benefit is payable to the Beneficiary(ies).  You may designate more than one primary or contingent Beneficiary.  If you make such a designation, the proceeds are payable in equal shares to the survivors in the appropriate Beneficiary designation class, unless you request otherwise in Good Order. 

Unless otherwise required by law, if the primary Beneficiary(ies) predeceases the Decedent, the Death Benefit proceeds will become payable to the contingent Beneficiary(ies).  If the Beneficiary(ies) dies after the death of the Decedent, but before the Death Benefit proceeds are paid, the Death Benefit proceeds will be payable to the Beneficiary’s(ies’) estate(s) upon our receipt of Due Proof of Death of the Decedent.  If no Beneficiary is alive when the Death Benefit proceeds are determined or there is no Beneficiary designation, the proceeds are payable to any surviving Owner(s), including an Owner that is an entity.  If there is no surviving Owner(s), the proceeds are payable to your estate. 

Changing Designations:  You may request to change the Owner(s), Annuitant, Joint Annuitant, Contingent Annuitant, Beneficiary and contingent Beneficiary designations by sending us a request in Good Order.  We may limit such changes when required in order to comply with applicable laws or regulations.  We will not accept changes if: 

(a) the Owner has died, and there are multiple Owners, the first of such Owners has died, unless the change of Owner is the result of Spousal Continuation; 
P-VA/IND(11/20)-NY    11

(b) a new Owner or Annuitant such that the new Owner or Annuitant does not meet the requirements for which we would then issue the Annuity as of the effective date of such change, unless the change of Owner or Annuitant is the result of Spousal Continuation; 
 
(c) a new Annuitant subsequent to the Annuity Date is requested and the annuity option selected includes a life contingency; 

(d) a new Annuitant or Joint Annuitant is requested prior to the Annuity Date if the Owner is an entity; or 

(e) a designation change is requested and the change request is received at our Service Office after the Annuity Date.

If there is a change of Owner(s) or Annuitant, the Latest Available Annuity Date will be based on the age of the oldest Owner(s) or Annuitant once the change is made.  The Annuity Date must: (a) be on or after the Earliest Available Annuity Date and on or before the new Latest Available Annuity Date; and (b) must be consistent with applicable laws and regulations at the time.

A change of Owner or Annuitant will take effect on the date the notice of change is signed, unless otherwise specified by you, subject to any payments made or actions taken by us prior to our receipt of the notice in Good Order.  An Owner may seek to transfer ownership of the Annuity, subject to the interest of any assignee or beneficiary of record. We will reject any ownership change at any time, on a non-discriminatory basis for purposes of satisfying applicable law or regulation. We assume no responsibility for the validity or tax consequences of any change of ownership.

Unless designated as "irrevocable", you may instruct us to change the Beneficiary. An irrevocable Beneficiary is one whose written consent is needed before you can change the Beneficiary or exercise certain other rights. A change of Beneficiary will take effect on the date the notice of change is signed, unless otherwise specified by you, subject to any payments made or actions taken by us prior to our receipt of the notice in Good Order.

PURCHASE PAYMENTS

Initial Purchase Payment:  Issuance of an Annuity represents our acceptance of an initial Purchase Payment.  The amount of your initial Purchase Payment evidenced by this Annuity is shown in the Annuity Schedule.  Purchase Payments are allocated to the Investment Options we make available according to your instructions.

Additional Purchase Payments:  The Purchase Payment Age Limitation and the Minimum Additional Purchase Payment are as shown in the Annuity Schedule.  We may further limit, restrict, suspend or reject additional Purchase Payments in order to manage our financial risk based on market and/or economic conditions.  Additional Purchase Payments will be allocated to the Investment Options according to your instructions.  If you have not provided any allocation instructions with the additional Purchase Payment, we will allocate it on a pro-rata basis to the Sub-accounts in which your Account Value is then allocated excluding any Sub-accounts to which you are not permitted to electively allocate or transfer Account Value.  If the Account Value in the Sub-accounts to which you may electively allocate Account Value is zero, we will allocate your additional Purchase Payment to a money market Sub-account.

ACCOUNT VALUE

Account Value in the Sub-accounts:  We determine your Account Value separately for each Sub-account we make available.  To determine the Account Value in each Sub-account, we multiply the Unit 
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Price, as of the Valuation Day for which the calculation is being made, by the number of Units attributable to your Annuity in that Sub-account as of that Valuation Day. 

Units:  The number of Units attributable to this Annuity in a Sub-account is the number of Units  purchased less the number of Units liquidated.  We determine the number of Units involved in any transaction specified in dollars by dividing the dollar value of the transaction by the Unit Price of the affected Sub-account as of the Valuation Day applicable to such transaction.

Unit Price:  The Unit Price for each Sub-account is the net investment factor for that Valuation Period, multiplied by the Unit Price for the immediately preceding Valuation Day.  The Unit Price for a Valuation Period applies to each day in the period.

Net Investment Factor:  Each Sub-account has a net investment factor. The net investment factor is an index that measures the investment performance of, and charges assessed against, a Sub-account from one Valuation Period to the next.

The net investment factor for a Valuation Period is (a) divided by (b), less (c), where:

(a)is the net result of:
(i)the net asset value per share of the underlying mutual fund shares held by that Sub-account at the end of the current Valuation Period plus the per share amount of any dividend or capital gain distribution declared and unpaid (accrued) by the underlying mutual fund, plus or minus
(ii)any per share charge or credit during the current Valuation Period as a provision for taxes attributable to the operation or maintenance of that Sub-account.

(b)is the net result of:
(i)the net asset value per share of the underlying mutual fund shares held by that Sub-account at the end of the preceding Valuation Period plus the per share amount of any dividend or capital gain distribution declared and unpaid (accrued) by the underlying mutual fund, plus or minus
(ii)any per share charge or credit during the preceding Valuation Period as a provision for taxes attributable to the operation or maintenance of the Sub-account.

(c)is the Insurance Charge and any applicable charge assessed against a Sub-account for any Rider attached to this Annuity corresponding to the portion of the 365 day year (366 for a leap year) that is in the current Valuation Period.

We value the assets in the Sub-account(s) at their fair market value in accordance with accepted accounting practices and applicable laws and regulations. The net investment factor may be greater than, equal to, or less than one.

ALLOCATION RULES

You may allocate your Account Value among the Investment Options we make available, excluding any Investment Options to which you are not permitted to electively allocate or transfer Account Value.  We may limit the availability of Investment Options for additional Purchase Payments or transfers.  Should you request a transaction that would leave less than the Minimum Investment Option Amount, shown in the Annuity Schedule, in an Investment Option, we may, to the extent permitted by law, add the balance of your Account Value in the applicable Investment Option to the transaction and close out your balance in that Investment Option.

Transfer Restrictions:  We may limit the number of transfers between or among such Sub-accounts in any Annuity Year for all existing or new Owners in order to preserve the tax status of your Annuity.  In 
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addition, in light of the risks that frequent transfers impose upon Owners and other investors in the Variable Separate Account(s) and/or mutual fund portfolios that serve as funding vehicles for the Sub-accounts, we may limit transfer activity and impose other requirements or charges to minimize these risks, including  requiring a minimum time period between each transfer, limiting the number of transfers in any Annuity Year or refusing any transfer request for an Owner or certain Owners.  The Transfer Fee, Minimum Transfer Amount and Maximum Number of Transfers are shown in the Annuity Schedule.

Where permitted by law, you may authorize a third party to transfer Account Values on your behalf.  Such authorization is subject to our acceptance and to the transfer restrictions described in the preceding paragraph.  We may suspend or cancel our acceptance of the authorization at any time.  We may restrict the Investment Options available for transfers or allocation of Purchase Payments by such third party.    

We will not restrict the available Investment Options if we receive evidence satisfactory to us that: (a) a court of competent jurisdiction has appointed such third party to act on your behalf; or (b) you have executed a power of attorney naming such third party to act on your behalf for insurance transactions.  We may refuse to accept, or suspend or cancel our acceptance of, a power of attorney at any time. 

Your right to make transfers is subject to the restrictions described above.  Restrictions may be applied in any manner reasonably designed to prevent any use of the transfer right which is considered by us to be to the disadvantage of other owners or to ensure compliance with applicable laws or regulations.

DISTRIBUTIONS

General:  We require you to submit a request in Good Order to our Service Office for any withdrawal or surrender.  We may also require that you send your Annuity to our Service Office as part of any surrender request.  Unless we receive instructions from you prior to a withdrawal, we will take the withdrawal pro-rata from the Sub-accounts in which your Account Value is then allocated.  We price any distribution on the Valuation Day we receive all required materials in Good Order. 

Surrender:  You may request a full withdrawal of your Annuity for its Surrender Value during the Accumulation Period or in lieu of receiving Annuity Payments.
Partial Withdrawals:  You may withdraw part of your Surrender Value.  If the amount of the Partial Withdrawal request reduces your Account Value below the Minimum Surrender Value After a Partial Withdrawal shown in the Annuity Schedule, we may treat your request as a request for a Surrender.

Required Minimum Distributions:  If your Annuity is being used for certain qualified purposes under the Internal Revenue Code, you may be required to begin receiving minimum distributions on a periodic basis from your Annuity.  The total amount of the minimum distributions required under the Code may depend on other annuities, savings or investments you have.  We will calculate a required minimum distribution amount each year, based solely on the value of this Annuity.  The amount we calculate (“Required Minimum Distribution”)  will not be based on any other annuities, savings or investments.  We will notify you of the Required Minimum Distribution amount each year.  If you choose  to have the Required Minimum Distribution paid out from this Annuity, you must do so through a program we make available.

If you choose to take your Required Minimum Distribution from this Annuity,  we will take each Required Minimum Distribution pro-rata from the Investment Options to which your Account Value is allocated at the time of the distribution unless we receive other instructions from you.  If the amount of the Required Minimum Distribution reduces your Account Value below the Minimum Surrender Value After a Partial Withdrawal, we may treat the distribution as a Surrender of the Annuity.  After the Annuity Date, we will view the Annuity Payments as your Required Minimum Distributions with respect to the Annuity.

DEATH BENEFIT

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A Death Benefit is payable only if your Account Value at the time of the Decedent’s death is greater than zero.  

If the Owner is a natural person, not an entity, the Owner is the Decedent upon his or her death.  If there is more than one Owner, each being a natural person, the first of such Owners to die is the Decedent. 

If the Owner is an entity, and there is no Contingent Annuitant, then the Annuitant is the Decedent and the Death Benefit is payable upon the Annuitant’s death or the first Annuitant to die if there are Joint Annuitants.  

If the Owner is an entity, and there is a Contingent Annuitant, no Death Benefit is payable upon the death of the Annuitant. The Contingent Annuitant may become the Annuitant.  

The Death Benefit is determined as of the date we receive Due Proof of Death of the Decedent.  Unless Spousal Continuation occurs on the date we receive Due Proof of Death, we transfer all amounts due each Beneficiary from whom we do not have payment instructions to a money market Sub-account until we receive such instructions in Good Order. 

In the event of death before the Annuity Date, the Death Benefit must be distributed within: (a) five years of the date of death of the Decedent; or (b) as to each Beneficiary, over a period not extending beyond the life expectancy of the Beneficiary or over the life of the Beneficiary.  Except as noted below in the “Spousal Continuation” section, we assume that the Death Benefit is to be paid out under (a), above, unless we receive a different election.

The Owner(s) may elect the method of payment to each Beneficiary, subject to our then current rules, prior to the date of death of the Decedent.  When no such election is made as to a specific Beneficiary, such Beneficiary must elect the method of payment within 60 days of the date we receive all required documentation in Good Order in order to pay the Death Benefit to that Beneficiary.  If no election is made within 60 days, the default will be distribution within five years of the date of death of the Decedent as noted in (a) above. In addition, distribution after a Decedent's death to be paid over the life expectancy or over the life of the Beneficiary under (b), above, must commence within one year of the date of death.

The Owner may elect to have any amount of the proceeds due to a Beneficiary applied under any of the Annuity Payout Options described in the “Annuity Payment Options” section, or any other option we then make available.  If you make such an election, a Beneficiary may not alter such an election.  However, if you have not previously made such an election, a Beneficiary may make such an election as to the proceeds due that Beneficiary.  The Beneficiary will be the “measuring life” for determining the amount of any Annuity Payments dependent on the continuation of life.  We may require evidence satisfactory to us of the age of the measuring life prior to commencement of any Annuity Payments.

In the event of death on or after the Annuity Date, we distribute any payments due subsequent to an Owner’s or Annuitant’s death at least as rapidly as under the method of distribution in effect as of the date of such Owner’s or Annuitant’s death.

Death Benefit: The amount of the Death Benefit is equal to the Account Value on the date we receive Due Proof of Death of the Decedent.  We call this the “Basic Death Benefit.”  

Spousal Continuation:  We allow the spouse to continue the Annuity subsequent to a Decedent’s death, subject to our receipt of Due Proof of Death.  The situations where the Annuity may continue subsequent to a death will be determined by us.  For example, these situations may include when on the date we receive Due Proof of Death of the Decedent:

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(a)    there is only one Owner of the Annuity and there is only one Beneficiary who is the Owner’s spouse, or

(b)there are two Owners who are married to each other on the date of death of the Decedent, and the surviving Owner is the sole primary Beneficiary under the Annuity, or

(c)there are two Owners who are married to each other on the date of death of the Decedent, and no Beneficiary designation has been elected, we then assume that the surviving Spouse will be the sole primary Beneficiary.

Spousal Continuation may occur only once  If no Death Benefit option is elected, the default is option a) as noted in the Death Benefit section above.

ANNUITY PAYOUT OPTIONS

General:  This Annuity provides for payments (“Annuity Payments”) under one of the Annuity Options described below. Any other available Annuity Options, in addition to those shown, may be selected with our consent. Certain Annuity Options may not be available, depending on the age of the Annuitant.  You will be the payee of the payments under the Annuity Option selected, unless we receive other instructions in Good Order.

Annuity Payments can be guaranteed for a period certain and life, as described below. You may choose an Annuity Date, an Annuity Option and the frequency of Annuity Payments. Your choice of Annuity Date and Annuity Option may be limited, depending on your use of the Annuity.

The Earliest Available Annuity Date and Latest Available Annuity Date as of the Issue Date are shown in the Annuity Schedule. You may change your choices at any time up to thirty days before any Annuity
Date you selected. We must receive your request in Good Order.

On the Annuity Date we apply the Account Value, less any applicable Tax Charges, to the Annuity Option you select.

If, on the Annuity Date, the amount that would otherwise be applied to the Annuity Option is less than the Minimum Surrender Value at Annuitization on the Annuity Date, or the initial annuity payment is less than the Minimum Annuity Payment, we may pay you the Account Value in one lump sum in full satisfaction of our obligations under this Annuity. The Minimum Surrender Value at Annuitization and the Minimum Annuity Payment are shown in the Annuity Schedule.

Annuity Options:  You may elect one of the Annuity Options listed below or any other Annuity Option we may make available. 

Annuity Payments available on the Annuity Date will not be less than those provided by the application of Account Value to the purchase of a single premium immediate annuity contract offered by us on the Annuity Date to the same class of Annuitants for the same Annuity Option. The basis of computation for each Annuity Option is shown in the Annuity Schedule. 

Option 1: Payments for Life with a Period Certain: We will pay equal periodic payments for the longer of the Annuitant’s remaining lifetime or a Period Certain. If this Annuity has Joint Annuitants, Annuity Payments will be based on the remaining lifetime of one Annuitant designated by the Owner. If the Annuitant dies after all Annuity Payments have been made for the Period Certain, Annuity Payments shall end with the last scheduled Annuity Payment due before the Annuitant’s death.  If you have not selected an Annuity Option,this will be the default with a Period Certain of 120 months (but not to exceed the life expectancy of the Annuitant at the time the Annuity Option becomes effective, as computed under applicable IRS tables).
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Option 2: Joint and Last Survivor: We will pay equal periodic payments for the joint remaining lifetimes of Joint Annuitants. Annuity Payments end with the last scheduled Annuity Payment due before the last surviving Annuitant’s death. We will not make any Annuity Payments to the Beneficiary under this option.

We may require evidence of the age of the Annuitant upon whose life payment amounts are calculated prior to commencement of any Annuity Payments. 

Death During the Payout Period:  In the Payout Period, subsequent to the death of the Annuitant, we continue to pay any Period Certain payments (payments not contingent on the continuance of any life) to the Owner (or named payee, if requested by the Owner) or, if applicable, any named Beneficiary.  If no Beneficiary has been named, any remaining Period Certain payments will be paid to your estate.  Note that the Beneficiary designation during the Accumulation Period is applicable to the Payout Period unless you have indicated otherwise.

Recovery of Excess Annuity Payments:  We will recover any Annuity Payments we have made after the Annuitant’s death under any annuity option (other than one that provides for “Period Certain” payments).

Annuity Payments: Annuity Payments under Option 1 and 2 above do not fluctuate.  The Account Value on the Annuity Date, less any applicable Tax Charges, is used to determine the Annuity Payments. The payment amount will be determined based on the annuity rates for the annuity option and the frequency of payment selected.  The annuity rates per $1,000 of value for Monthly Annuity Payments under Options 1 (assuming 120 Months Period Certain) and Option 2 above will not be less than those shown in the Annuity Tables in the Annuity Schedule. 

GENERAL PROVISIONS

Entire Contract:  This Annuity, including the Annuity Schedule, any riders, endorsements, schedule supplements, and amendments that are made part of this Annuity, are the entire contract. We will not unilaterally amend the terms and conditions of this Annuity, except where such change or amendment is required to conform to applicable New York and federal law. Any such change or amendment cannot be effective, without prior New York regulatory approval. Your written consent is required if such change diminishes your rights or benefits under this contract.  We are not bound by any promises or representations made by, or to, any other person. 

Incontestability:  We will not contest this Annuity.  Any statements made in applying for the Annuity are considered representations, not warranties.

Misstatement of Age or Sex:  If there has been a misstatement of the age and/or sex of any person upon whose life any amounts we are obligated to determine in order to make any payment, including charges and Annuity Payments, the Death Benefit or any increase to Account Value under the “Spousal Continuation” section, we will adjust such amounts to conform to that for the correct age and/or sex.  As to Annuity Payments: (a) any underpayments by us will be remedied on the next payment following correction with interest at the Misstatement of Age or Sex Interest Rate shown on the Annuity Schedule; and (b) any overpayments by us will be charged against future amounts payable by us under your Annuity.

Transfers, Assignments or Pledges:  Generally, your rights in this Annuity may be transferred, assigned or pledged for loans.  However, these rights may be limited if your Annuity is used as an Individual Retirement Annuity (“IRA”) or other qualified investment that is given beneficial tax treatment under the Code.  You may assign this Annuity before the Annuity Date.  No assignment of this Annuity shall be binding on us unless a request to assign this Annuity has been received in our Service Office in Good 
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Order. Any assignment will be subject to any prior assignment of record. We will not consent if the assignment or other transfer would violate or result in noncompliance with any applicable state or federal law or regulation.  We will not assume any responsibility for the validity or sufficiency of an assignment. However, we may require proof of the nature and extent of the assignee's interest before we make a payment to the assignee. Unless otherwise specified by the Owner in the request, the assignment shall take effect on the date the notice of assignment is signed by the Owner, subject to any payments made or actions taken by us prior to recording of the request at the Service Office.

Nonparticipation:  The Annuity does not share in our profits or surplus earnings.

Deferral of Transactions:  We may defer any payment of the Surrender Value for a period not to exceed the lesser of 6 months or the period permitted by law.  If we defer payment of the Surrender Value for more than ten days, we will pay interest as required by state law.  We may defer any distribution from any Sub-account or any transfer from a Sub-account for a period not to exceed seven calendar days from the date the transaction is effected. 

In addition to the transfer restrictions above, all transactions into, out of, or based on any Sub-account may be postponed whenever: (1) the New York Stock Exchange is closed (other than customary holidays or weekends) or trading on the New York Stock Exchange is restricted as determined by the SEC; (2) the SEC permits postponement and so orders; or (3) the SEC determines that an emergency exists making valuation or disposal of securities not reasonably practical.

Claims of Creditors:  To the extent permitted by law, no payment or value under this Annuity is subject to the claims of your creditors or those of any other Owner, any Annuitant, or any Beneficiary.

Evidence of Survival:  Before we make a payment, we have the right to require proof of continued life to make a payment.  We can require this proof for any person whose life or death determines whether or to whom we must make the payment.

Tax Reporting and Withholding:  We comply with all applicable federal and state tax reporting and withholding laws and regulations with respect to this Annuity.  Events giving rise to such tax reporting and withholding include, but are not limited to: (a) Annuity Payments; (b) payment of Death Benefits; (c) other distributions from the Annuity; and (d) transfers and assignments. 

Facility of Payment:  Subject to applicable law, in settlement of full liability, to make payments to a guardian, conservator or other legal representative if a payee is legally incompetent. 

Participation and Termination of Certain Programs We May Offer:  To elect to participate in, or to terminate participation in, any program we may offer, we must receive your request in Good Order at our Service Office.

Minimum Benefits:  Any benefits available under this Annuity are not less than the minimum benefits required by applicable New York law. 

Reports to You:  We will provide you with reports at least once annually.  You may request additional reports; we will charge up to $50 for each such additional report.

Reserved Rights:  In addition to rights specifically reserved elsewhere in this Annuity, we reserve the right to perform any or all of the following:  (a) combine a Sub-account with other Sub-accounts; (b) combine the Variable Separate Account(s) shown in the Annuity Schedule with other "unitized" separate accounts; (c) deregister the Variable Separate Account(s) shown in the Annuity Schedule under the Investment Company Act of 1940; (d) operate the Variable Separate Account(s) shown in the Annuity Schedule as a management investment company under the Investment Company Act of 1940 or in any other form permitted by law; (e) make adjustments required by any change in the federal securities laws, including, but not limited to, the 
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Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, or any changes to the Securities and Exchange Commission’s interpretation thereof;  (f) make changes that are necessary to maintain the tax status of your Annuity, any rider, amendment or endorsement attached hereto or any charge or distribution from your Annuity under the Internal Revenue Code; (g) to establish a provision for federal income taxes if we determine that we will incur a tax as a result of the operation of the Separate Account; (h) make any changes required by Federal or state laws with respect to annuity contracts; and (i) to the extent dictated by any underlying mutual fund, impose a redemption fee or restrict transactions within any Sub-account. We may modify this Annuity without receiving your prior consent, except as may be required by any applicable law, if we are required to make changes necessary to comply with state regulatory requirements, Internal Revenue Service ("IRS") requirements or other federal requirements. 

We may eliminate Sub-accounts, restrict or prohibit additional allocations to certain Sub-accounts, or substitute one or more new underlying mutual funds or portfolios for the one in which a Sub-account is invested in which case any reference to pro-rata allocations would include only those Sub-accounts that do not restrict or prohibit additional allocations.  Substitutions may be necessary if we believe an underlying mutual fund or portfolio no longer suits the purpose of the Annuity.  This may happen due to a change in laws or regulations, or a change in the investment objectives or restrictions of an underlying mutual fund or portfolio, or because the underlying mutual fund or portfolio is no longer available for investment, or for any other reason.  We would obtain the approval of the Superintendent of Financial Services, and any prior approval as required by any applicable law, before exercising the rights described in this “Reserved Rights” section.

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NON-PARTICIPATING INDIVIDUAL FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY

During the Accumulation Period any payments and values based on the Sub-account(s) are not guaranteed and will increase or decrease, based on their investment performance.   

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Payout options are specified in the Annuity.  Other payout options may be made available. 

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