Document:

AGREEMENT FOR PURCHASE AND SALE

Exhibit 10.44

 

AGREEMENT FOR PURCHASE AND SALE
AND JOINT ESCROW
INSTRUCTIONS

BY AND BETWEEN

 

CCIP/2 VILLAGE BROOKE, L.L.C.,

a Delaware limited liability
company,

AS SELLER

AND

JRK BIRCHMONT ADVISORS, LLC, 
a Delaware limited
liability company,

AS PURCHASER

 

(Glenbridge
Manors)

Table of
Contents

Page

 

	
 
	
ARTICLE
1
	
CERTAIN
DEFINED TERMS
	
1

	
 
	
ARTICLE
2
	
PURCHASE
AND SALE, PURCHASE PRICE & DEPOSIT
	
8

	
 
	
2.1
	
Purchase
and Sale
	
8

	
 
	
2.2
	
Purchase
Price and Deposit
	
8

	
 
	
2.3
	
Escrow
Provisions Regarding Deposit
	
8

	
 
	
ARTICLE
3
	
INSPECTIONS
	
9

	
 
	
3.1
	
Inspections
	
9

	
 
	
3.2
	
Expiration
of Feasibility Period
	
10

	
 
	
3.3
	
Conduct
of Investigation
	
10

	
 
	
3.4
	
Purchaser
Indemnification
	
11

	
 
	
3.5
	
Property
Materials
	
12

	
 
	
3.6
	
Property
Contracts
	
13

	
 
	
ARTICLE
4
	
TITLE
AND SURVEY
	
13

	
 
	
4.1
	
Title
Documents
	
13

	
 
	
4.2
	
Survey
	
14

	
 
	
4.3
	
Objection
and Response Process
	
14

	
 
	
4.4
	
Permitted
Exceptions
	
14

	
 
	
4.5
	
 
	
 

	
 
	
4.6
	
Subsequently
Disclosed Exceptions
	
15

	
 
	
4.7
	
Purchaser
Financing
	
15

	
 
	
ARTICLE
5
	
ASSUMED
ENCUMBRANCES
	
15

	
 
	
5.1
	
In
General
	
15

	
 
	
5.2
	
Purchaser’s
Obligation to Assume
	
15

	
 
	
5.3
	
Loan
Assumption Application
	
16

	
 
	
5.4
	
Additional
Requirements of Purchaser
	
16

	
 
	
5.5
	
Replacement
of Reserves
	
17

	
 
	
5.6
	
Time
to Obtain Lender Approval
	
17

	
 
	
5.7
	
Failure
to Obtain Assumption Approval
	
17

	
 
	
5.8
	
Documentation
of Assumption
	
17

	
 
	
ARTICLE
6
	
CLOSING
PROVISIONS
	
18

	
 
	
6.1
	
Closing
Date
	
18

	
 
	
6.2
	
Seller
Closing Deliveries
	
18

	
 
	
6.3
	
Purchaser
Closing Deliveries
	
19

	
 
	
6.4
	
Closing
Prorations and Adjustments
	
20

	
 
	
6.5
	
Post
Closing Adjustments
	
23

	
 
	
ARTICLE
7
	
REPRESENTATIONS,
WARRANTIES AND COVENANTS
	
24

	
 
	
7.1
	
Seller’s
Representations
	
24

	
 
	
7.2
	
AS-IS
	
25

	
 
	
7.3
	
Survival
of Seller’s Representations
	
26

	
 
	
7.4
	
Definition
of Seller’s Knowledge
	
27

	
 
	
7.5
	
Representations
and Warranties of Purchaser
	
27

	
 
	
ARTICLE
8
	
OPERATIONS
OF THE PROPERTY
	
28

	
 
	
8.1
	
Leases
and Property Contracts
	
28

	
 
	
8.2
	
General
Operation of Property
	
28

	
 
	
8.3
	
Liens
	
28

	
 
	
ARTICLE
9
	
CONDITIONS
PRECEDENT TO CLOSING
	
29

	
 
	
9.1
	
Purchaser’s
Conditions to Closing
	
29

	
 
	
9.2
	
Seller’s
Conditions to Closing
	
29

	
 
	
ARTICLE
10
	
BROKERAGE
CONDITIONS
	
30

	
 
	
10.1
	
Indemnity
	
30

	
 
	
10.2
	
Broker
Commission
	
30

	
 
	
ARTICLE
11
	
DEFAULTS
AND REMEDIES
	
31

	
 
	
11.1
	
Purchaser
Default
	
31

	
 
	
11.2
	
Seller
Default
	
31

	
 
	
ARTICLE
12
	
RISK
OF LOSS OR CASUALTY
	
32

	
 
	
12.1
	
Major
Damage
	
32

	
 
	
12.2
	
Minor
Damage
	
33

	
 
	
12.3
	
Repairs
	
33

	
 
	
12.4
	
Replacement
of Insurance Carrier
	
33

	
 
	
ARTICLE
13
	
EMINENT
DOMAIN
	
34

	
 
	
ARTICLE
14
	
MISCELLANEOUS
PROVISIONS
	
34

	
 
	
14.1
	
Binding
Effect of Agreement
	
34

	
 
	
14.2
	
Exhibits
and Schedules
	
34

	
 
	
14.3
	
Purchaser’s
Assignees
	
34

	
 
	
14.4
	
Binding
Effect
	
34

	
 
	
14.5
	
Captions
	
34

	
 
	
14.6
	
Number
and Gender of Words
	
34

	
 
	
14.7
	
Notices
	
34

	
 
	
14.8
	
Governing
Law and Venue
	
36

	
 
	
14.9
	
Entire
Agreement
	
36

	
 
	
14.10
	
Amendments
	
36

	
 
	
14.11
	
Severability
	
37

	
 
	
14.12
	
Multiple
Counterparts
	
37

	
 
	
14.13
	
Construction
	
37

	
 
	
14.14
	
Confidentiality
	
37

	
 
	
14.15
	
Time
of the Essence
	
37

	
 
	
14.16
	
Waiver
	
37

	
 
	
14.17
	
Attorneys’
Fees
	
37

	
 
	
14.18
	
Time
Periods
	
38

	
 
	
14.19
	
1031
Exchange
	
38

	
 
	
14.20
	
No
Personal Liability of Officers, Trustees or Directors
	
38

	
 
	
14.21
	
Exclusive
Negotiations
	
39

	
 
	
14.22
	
ADA
Disclosure
	
39

	
 
	
14.23
	
No
Recording
	
39

	
 
	
14.24
	
Relationship
of Parties
	
39

	
 
	
14.25
	
Waiver
of Jury Trial
	
39

	
 
	
14.26
	
AIMCO
Marks
	
39

	
 
	
14.27
	
Non-Solicitation
of Employees
	
40

	
 
	
14.28
	
Survival
	
40

	
ARTICLE
15
	
LEAD
BASED PAINT DISCLOSURE
	
40

	
 
	
15.1
	
Disclosure
	
40

								

 

 

 

EXHIBITS
AND
SCHEDULES                                                                                                      

Exhibit
A                     
Legal Description of
Property                                      

Exhibit
B                     
Form of
Deed                                                              

Exhibit
C                     
Form of Bill of
Sale                                                      

Exhibit
D                     
Form of General
Assignment                                        

Exhibit
E                      
Form of Leases
Assignment                                         

Exhibit
F                      
Form of Vender
Termination                                        

Exhibit
G                     
Form of Notice to
Tenants                                           

Exhibit
H                     
Excluded
FF&E                                                          

Exhibit
I                       
List of Materials for
Purchaser                         

Exhibit
J
                     
Lead-Based Paint
Disclosure                                       

Schedule
1                  
Seller Information
Schedule                                          

AGREEMENT FOR PURCHASE AND SALE
AND ESCROW INSTRUCTIONS

THIS
AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS (this
“Agreement”) is entered into as of the 12th day of July, 2010 (the
“Effective Date”), by CCIP/2 VILLAGE BROOKE, L.L.C., a Delaware limited
liability company, having an address at 4582 South Ulster Street Parkway, Suite
1100, Denver, Colorado 80237 (“Seller”), and JRK BIRCHMONT ADVISORS, LLC,
a Delaware limited liability company, having a principal address at 11766
Wilshire Boulevard, Suite 1450, Los Angeles, California 90025
(“Purchaser”), or its permitted assignee or assignees as provided in
Section 14.3.

RECITALS

A.       
Seller owns the real estate located in Hamilton County, Ohio, as more
particularly described in Exhibit A attached hereto and made a part hereof, and
the improvements thereon, commonly known as Glenbridge Manors Apartments.

B.        
Purchaser desires to purchase, and Seller desires to sell, such land,
improvements and certain associated property, on the terms and conditions set
forth below.

AGREEMENT

NOW,
THEREFORE, in consideration of mutual covenants set forth herein and for other
consideration the receipt and sufficiency of which is hereby acknowledged,
Seller and Purchaser hereby agree as follows:

ARTICLE
1
CERTAIN DEFINED
TERMS

Unless
otherwise defined herein, any term with its initial letter capitalized in this
Agreement shall have the meaning set forth in this ARTICLE 1.

(a)               
“ADA” shall have the meaning set forth in Section
14.22.

(b)              
“Additional Deposit” shall have the meaning set forth in
Section 2.2.2.

(c)               
“AIMCO” means Apartment Investment and Management
Company.

(d)              
“AIMCO Marks” means all words, phrases, slogans,
materials, software, proprietary systems, trade secrets, proprietary information
and lists, and other intellectual property owned or used by Seller, Property
Manager, or AIMCO in the marketing, operation or use of the Property (or in the
marketing, operation or use of any other properties managed by the Property
Manager or owned by AIMCO or an affiliate of either Property Manager or
AIMCO).

(e)               
“Assignment and Assumption Documents” shall have the
meaning set forth in Section 5.8.

(f)                
“Assumed Encumbrances” shall have the meaning set forth in
Section 5.1.

(g)               
“Assumed Loan Documents” shall have the meaning set forth
in Section 5.1.

(h)               
“Assumption Application” shall have the meaning set forth
in Section 5.3.

(i)                 
“Assumption Lender Fees” shall have the meaning set forth
in Section 5.4(c).

(j)                
“Broker” shall have the meaning set forth in Section
10.1.

(k)              
“Business Day” means any day other than a Saturday or
Sunday or Federal holiday or legal holiday in the States of Colorado, Ohio or
New York.

(l)                 
“Closing” means the consummation of the purchase and
sale and related transactions contemplated by this Agreement in accordance with
the terms and conditions of this Agreement.

(m)             
“Closing Date” shall have the meaning set forth in Section
6.1.

(n)               
“Code” means the Internal Revenue Code of 1986, as
amended.

(o)              
“Consultants” shall have the meaning set forth in
Section 3.1.

(p)              
“Damage Notice” shall have the meaning set forth in
Section 12.1.

(q)              
“Deed” means the Limited Warranty Deed for transferring
title to the Property, in the form attached hereto as Exhibits B, duly executed
by Seller.

(r)                
“Deposit” means, to the extent actually deposited by
Purchaser with Escrow Agent, the Initial Deposit and the Additional
Deposit.

(s)               
“Effective Date” shall have the meaning set forth in the
Preamble.

(t)                
“Escrow Agent” means First American Title Insurance
Company of New York.

(u)               
“Excluded Permits” means those Permits which, under
applicable law, are nontransferable and such other Permits, if any, as may be
designated as Excluded Permits on Schedule 1.

(v)               
“Existing Survey” shall have the meaning set forth in
Section 4.2.

(w)             
“Feasibility Period” shall have the meaning set forth in
Section 3.1.

(x)               
“FHA” shall have the meaning set forth in Section 14.22.

(y)               
“Fixtures and Tangible Personal Property” means all
fixtures, furniture, furnishings, fittings, equipment, machinery, apparatus,
appliances and other articles of tangible personal property located on the Land
or in the Improvements as of the Effective Date and used or usable in connection
with the occupation or operation of all or any part of the Property, but only to
the extent transferable.  The term “Fixtures and Tangible Personal
Property” does not include (a) equipment leased by Seller and the interest
of Seller in any equipment provided to the Property for use, but not owned or
leased by Seller, or (b) property owned or leased by any Tenant or guest,
employee or other person furnishing goods or services to the Property, or (c)
property and equipment owned by Seller, which in the ordinary course of business
of the Property is not used exclusively for the business, operation or
management of the Property, or (d) the property and equipment, if any, expressly
identified in Schedule 1.

(z)               
“General Assignment” shall have the meaning set forth
in Section 6.2(c).

(aa)           
“Good Funds” shall have the meaning set forth in
Section 2.2.1.

(bb)          
“Improvements” means all buildings, structures,
building systems and fixtures, parking areas, sidewalks, landscaping, facilities
and improvements located on the Land, including, without limitation, each
Property’s plumbing, air conditioning, heating, ventilation, utility and
mechanical systems.

(cc)           
“Initial Deposit” shall have the meaning set forth in
Section 2.2.1.

(dd)          
“Inspections” shall have the meaning set forth in Section
3.1(a).

(ee)           
“Intermediary” shall have the meaning set forth in Section
14.19.

(ff)              
“Land” means the tract of land described on Exhibit A,
and all rights, title and interest, if any, in and to appurtenances pertaining
thereto, including Seller’s right, title and interest, if any, in and to the
adjacent streets, alleys, strips, gores and right-of-ways, subsurface and
mineral development rights, and water rights.

(gg)           
“Lease(s)” means the interest of Seller in and to all
leases, subleases and other occupancy contracts, whether or not of record, which
provide for the use or occupancy of space or facilities on or relating to the
Property and which are in force as of the Closing Date.

(hh)           
“Leases Assignment” shall have the meaning set forth in
Section 6.2(d).

(ii)               
“Lender” means Northwestern Mutual Life Insurance
Company.

(jj)              
“Loan” means the indebtedness owing to Lender evidenced
by the Note and secured by the Mortgage.

(kk)          
“Loan Assumption Agreement” shall have the meaning set
forth in Section 5.8.

(ll)               
“Loan Assumption Approval” shall have the meaning set forth
in Section 5.6.

(mm)       
“Loan Assumption” shall have the meaning set forth in
Section 5.2.

(nn)           
“Loan Assumption Deadline” shall have the meaning set forth
in Section 5.6.

(oo)          
“Loan Assumption Packet” shall have the meaning set forth
in Section 5.3.

(pp)          
“Losses” shall have the meaning set forth in Section 3.4.1.

(qq)          
“Major Damage” means damage or
destruction by fire or other casualty, the cost of which to repair or
restore the Property in question to a condition substantially identical to that
of the Property in question prior to the event of damage would be, in the
opinion of a contractor or building engineer (determined in accordance with
Section 12.1) in excess of
$1,000,000.

(rr)             
“Materials” shall have the meaning set forth in Section
3.5.1.

(ss)            
“Miscellaneous Property Assets” means all contract
rights, leases, concessions, warranties, plans, drawings and other items of
intangible personal property relating to the ownership or operation of the
Property and owned by Seller including development rights and sewer and
wastewater capacity rights, excluding, however, (a) receivables, (b) Property
Contracts, (c) Leases, (d) Permits, (e) cash or other funds, whether in petty
cash or house “banks,” or on deposit in bank accounts or in transit for deposit,
(f) refunds, rebates or other claims, or any interest thereon, for periods or
events occurring prior to the Closing Date, (g) utility and similar deposits,
(h) insurance or other prepaid items, (i) Seller’s proprietary books and
records, or (j) any right, title or interest in or to the AIMCO Marks.  The
term “Miscellaneous Property Assets” also shall include all of Seller’s rights,
if any, in and to the term “Glenbridge Manors” as it relates solely to use in
connection with the Property (and not with respect to any other property owned
or managed by Seller, Property Manager, AIMCO, or their respective affiliates),
and, to the extent transferable and at no cost to Seller, all telephone numbers
and website addresses (url) associated with the Property, all computers at the
Property used exclusively for the Property, and all data (tangible or computer
logged) for the Property held by the Property Manager in connection with
management of the Property.  

(tt)              
“Mortgage” means that certain Mortgage dated December 17,
2003 in favor of Lender that encumbers the Property and secures the Note, as
amended from time to time.

(uu)           
“New Exception” shall have the meaning set forth in Section
4.6.

(vv)           
“New Exception Review Period” shall have the meaning set
forth in Section 4.6.

(ww)       
“Note” means that certain Promissory Note dated December
17, 2003 in the original principal amount of $21,000,000.00 made by Seller in
favor of Lender, as amended from time to time.

(xx)           
“Objection Deadline” shall have the meaning set forth in
Section 4.3.

(yy)           
“Objection Notice” shall have the meaning set forth in
Section 4.3.

(zz)            
“Objections” shall have the meaning set forth in
Section 4.3.

(aaa)        
“Operating Expenses” shall have the meaning set forth in
Section 6.4.2.

(bbb)      
“Operating Statements” shall have the meaning set forth on
Exhibit I.

(ccc)        
“Permits” means, with respect to each Property, all
licenses and permits granted by any governmental authority having jurisdiction
over such Property and required in order to own and operate such Property.

(ddd)      
“Permitted Exceptions” shall have the meaning set forth
in Section 4.4.

(eee)        
“Prohibited Person” means any of the following: 
(a) a person or entity that is listed in the Annex to, or is otherwise
subject to the provisions of, Executive Order No. 13224 on Terrorist
Financing (effective September 24, 2001) (the “Executive Order”);
(b) a person or entity owned or controlled by, or acting for or on behalf
of any person or entity that is listed in the Annex to, or is otherwise subject
to the provisions of, the Executive Order; (c) a person or entity that is
named as a “specially designated national” or “blocked person” on the most
current list published by the U.S. Treasury Department’s Office of Foreign
Assets Control (“OFAC”) at its official website,
http://www.treas.gov/offices/enforcement/ofac; (d) a person or entity that
is otherwise the target of any economic sanctions program currently administered
by OFAC; or (e) a person or entity that is affiliated with any person or
entity identified in clause (a), (b), (c) and/or (d) above.

(fff)            
“Property” means (a) the Land and Improvements and all
rights of Seller, if any, in and to all of the easements, rights, privileges,
and appurtenances belonging or in any way appertaining to the Land and
Improvements, (b) the right, if any and only to the extent transferable, of
Seller in the Property Contracts (other than Terminated Contracts), Leases,
Permits (other than Excluded Permits), Tenant Deposits and the Fixtures and
Tangible Personal Property related to the Land and Improvements, and (c) the
Miscellaneous Property Assets owned by Seller which are located on the Land and
Improvements and used in its operation.

(ggg)        
“Property Contracts” means all contracts, agreements,
equipment leases, purchase orders, maintenance, service, or utility contracts
and similar contracts, excluding Leases, which relate to the ownership,
maintenance, construction or repair and/or operation of the
Property, but only to the extent assignable by their terms or applicable law
(including any contracts that are assignable with the consent of the applicable
vendor), and not including (a) any national contracts entered into by Seller,
Property Manager, or AIMCO with respect to the Property (i) which terminate
automatically upon transfer of the Property by Seller, or (ii) which Seller, in
Seller’s sole discretion, elects to terminate with respect to the Property in
accordance with Section 3.6, effective as of
the Closing Date, or (b) any property management contract for the
Property.  

(hhh)        
“Property Contracts List” shall have the meaning set forth
in Section 3.5.4.

(iii)              
“Property Contracts Notice” shall have the meaning set
forth in Section 3.6.

(jjj)            
“Property Manager” means the current property manager
of the Property.

(kkk)      
“Proration Schedule” shall have the meaning set forth
in Section 6.4.1.

(lll)              
“Purchase Price” shall have the meaning set forth in
Section 2.2.

(mmm)   “Purchaser’s
Designated Entity” shall have the meaning set forth in
Section 14.3.

(nnn)        
“Purchaser’s Indemnified Parties” shall have the meaning
set forth in Section 3.6.

(ooo)      
“Records Disposal Notice” shall have the meaning set forth
in Section 6.5.12.

(ppp)      
“Records Hold Period” shall have the meaning set forth in
Section 6.4.10.

(qqq)      
“Regional Property Manager” means Chad Paavola.

(rrr)           
“Rent Roll” shall have the meaning set forth in Section
3.5.3.

(sss)         
“Required Assignment Consent” shall have the meaning set
forth in Section 3.6.

(ttt)            
“Response Deadline” shall have the meaning set forth in
Section 4.3.

(uuu)        
“Response Notice” shall have the meaning set forth in
Section 4.3.

(vvv)        
“Seller’s Indemnified Parties” shall have the meaning set
forth in Section 3.4.1.

(www)   “Seller
Information Schedule” means Schedule 1.

(xxx)        
“Seller’s Property-Related Files and Records” shall have
the meaning set forth in Section 6.4.10.

(yyy)        
“Seller’s Representations” shall have the meaning set forth
in Section 7.1.

(zzz)         
“Survey” shall have the meaning set forth in Section
4.2.

(aaaa)    
“Survival Period” shall have the meaning set forth in
Section 7.3.

(bbbb)   “Survival
Provisions” shall have the meaning set forth in Section 14.28.

(cccc)    
“Tenant” means any person or entity entitled to occupy
any portion of the Property under a Lease.

(dddd)   “Tenant
Deposits” means all security deposits, prepaid rentals, cleaning fees, and
other refundable deposits and fees collected from Tenants, plus any interest
accrued thereon, paid by Tenants to Seller pursuant to the Leases.  Tenant
Deposits shall not include any non-refundable deposits or fees paid by Tenants
to Seller, either pursuant to the Leases or otherwise.

(eeee)    
“Tenant Notice” shall have the meaning set forth in
Section 6.2(e).

(ffff)              
“Tenant Security Deposit Balance” shall have the meaning
set forth in Section 6.4.6(b).

(gggg)        
“Tenant Unit” means each apartment in the Property which is
leased by Seller to Tenants in the ordinary course of Seller’s
business.

(hhhh)        
“Terminated Contracts” shall have the meaning set forth
in Section 3.6.

(iiii)                    
“Third-Party Costs” shall have the meaning set forth in
Section 6.5.13(b)(i).

(jjjj)                  
“Third-Party Reports” means any reports, studies or
other information prepared or compiled for Purchaser by any Consultant or other
third-party in connection with Purchaser’s investigation of the Property.

(kkkk)          
“Title Commitment” shall have the meaning ascribed
thereto in Section 4.1.

(llll)                    
“Title Documents” shall have the meaning set forth in
Section 4.1.

(mmmm)    
“Title Insurer” means First American Title Insurance
Company of New York.

(nnnn)            
“Title Policy” shall have the meaning set forth in
Section 4.1.

(oooo)          
“Uncollected Rents” shall have the meaning set forth in
Section 6.5.6(a).

(pppp)   “Utility
Costs” shall have the meaning set forth in Section 6.4.6(c).

ARTICLE
2
PURCHASE AND
SALE, PURCHASE PRICE & DEPOSIT

 

2.1      
Purchase and Sale.

 
Seller agrees to sell and convey the Property to Purchaser and Purchaser agrees
to purchase such Property from Seller, all in accordance with the terms and
conditions set forth in this Agreement.

2.2.           
Purchase Price and
Deposit.

 
The total purchase price (the “Purchase Price”) for the Property shall be
$26,500,000.00, which shall be paid by Purchaser.  The Purchase Price shall
be paid as follows:

         
2.2.1.     
Within 2 Business Days
following the Effective Date, Purchaser shall deliver to Stewart Title Guaranty
Company, c/o Wendy Howell, National Commercial Closing Specialist, 1980 Post Oak
Boulevard, Suite 610, Houston, TX 77056, 800-729-1906 (“Escrow
Agent” or “Title Insurer”) an initial deposit (the “Initial
Deposit”) of $265,000.00 by wire transfer of immediately available funds
(“Good Funds”). 

         
2.2.2.     
On or before the day that the
Feasibility Period expires, Purchaser shall deliver to Escrow Agent an
additional deposit (the “Additional Deposit”) of $2,735,000.00 by wire
transfer of Good Funds.

         
2.2.3.     
The balance of the Purchase
Price for the Property (less the outstanding balance of the Loan to be assumed
pursuant to Article 5) shall be paid to and received by Escrow Agent by wire
transfer of Good Funds no later than 10:00 a.m. on the Closing
Date.

2.3.           
Escrow Provisions
Regarding Deposit.

         
2.3.1.     
Escrow Agent shall hold the
Deposit and make delivery of the Deposit to the party entitled thereto under the
terms of this Agreement.  Escrow Agent shall invest the Deposit in such
short-term, high-grade securities, interest-bearing bank accounts, money market
funds or accounts, bank certificates of deposit or bank repurchase contracts as
Escrow Agent, in its discretion, deems suitable, and all interest and income
thereon shall become part of the Deposit and shall be remitted to the party
entitled to the Deposit pursuant to this Agreement.

         
2.3.2.     
Escrow Agent shall hold the
Deposit until the earlier occurrence of (i) the Closing Date, at which time the
Deposit shall be applied against the Purchase Price, or released to Seller
pursuant to Section 11.1, or (ii) the date on which Escrow Agent shall be
authorized to disburse the Deposit as set forth in Section 2.3.3.  The tax
identification numbers of the parties shall be furnished to Escrow Agent upon
request.

         
2.3.3.     
If prior to the Closing Date
either party makes a written demand upon Escrow Agent for payment of the
Deposit, Escrow Agent shall give written notice to the other party of such
demand.  If Escrow Agent does not receive a written objection from the
other party to the proposed payment within 5 Business Days after the giving of
such notice, Escrow Agent is hereby authorized to make such payment.  If
Escrow Agent does receive such written objection within such 5-Business Day
period, Escrow Agent shall continue to hold such amount until otherwise directed
by written instructions from the parties to this Agreement or a final judgment
or arbitrator’s decision.  However, Escrow Agent shall have the right at
any time to deliver the Deposit and interest thereon, if any, with a court of
competent jurisdiction in the state in which the Property is located. 
Escrow Agent shall give written notice of such deposit to Seller and
Purchaser.  Upon such deposit, Escrow Agent shall be relieved and
discharged of all further obligations and responsibilities hereunder.  Any
return of the Deposit to Purchaser provided for in this Agreement shall be
subject to Purchaser’s obligations set forth in Section 3.5.2.

         
2.3.4.     
The parties acknowledge that
Escrow Agent is acting solely as a stakeholder at their request and for their
convenience, and that Escrow Agent shall not be deemed to be the agent of either
of the parties for any act or omission on its part unless taken or suffered in
bad faith in willful disregard of this Agreement or involving gross
negligence.  Seller and Purchaser jointly and severally shall indemnify and
hold Escrow Agent harmless from and against all costs, claims and expenses,
including reasonable attorney’s fees, incurred in connection with the
performance of Escrow Agent’s duties hereunder, except with respect to actions
or omissions taken or suffered by Escrow Agent in bad faith, in willful
disregard of this Agreement or involving gross negligence on the part of the
Escrow Agent.

         
2.3.5.     
The parties shall deliver to
Escrow Agent an executed copy of this Agreement.  Escrow Agent shall
execute the signature page for Escrow Agent attached hereto which shall confirm
Escrow Agent’s agreement to comply with the terms of Seller’s closing
instruction letter delivered at Closing and the provisions of this Section
2.3.

         
2.3.6.     
Escrow Agent, as the person
responsible for closing the transaction within the meaning of Section
6045(e)(2)(A) of the Code, shall file all necessary information, reports,
returns, and statements regarding the transaction required by the Code
including, but not limited to, the tax reports required pursuant to Section 6045
of the Code.  Further, Escrow Agent agrees to indemnify and hold Purchaser,
Seller, and its respective attorneys and brokers harmless from and against any
Losses resulting from Escrow Agent’s failure to file the reports Escrow Agent is
required to file pursuant to this section.  The provisions of this Section 2.3.6 shall
survive the termination of this Agreement.

ARTICLE
3
INSPECTIONS

 

3.1      
Inspections.

 
Subject to the terms of Sections 3.3 and 3.4 and the right of Tenants under the Leases, from
the Effective Date of this Agreement to and including July 16, 2010 (the
“Feasibility Period”), Purchaser, and its agents, contractors, engineers,
surveyors, attorneys, and employees (collectively,
“Consultants”) shall have the right from time to time to enter onto the
Property:

(a)               
To conduct and make any and all customary studies, examinations,
inquiries, and inspections, or investigations (collectively, the
“Inspections”) of or concerning the Property which shall include the
right to conduct non-invasive, non-destructive testing of the Property,
including a Phase I Environmental Report (but not a Phase II Environmental
Report), subject to Section 3.3;

(b)              
To conduct such other testing and examinations as may be
reasonably necessary subject to the permission of Seller pursuant to Section
3.4.2;

(c)               
To confirm any and all matters which Purchaser may reasonably
desire to confirm with respect to each of the Property;

(d)              
To interview employees of the Property Manager and personnel of
the Property (provided that (i) Purchaser gives Seller written notice of such
intention at least forty-eight (48) hours prior to any such interview, and (ii)
Seller shall have the right to have a representative present at any such
interview);

(e)               
To ascertain and confirm the suitability of each of the Property
for Purchaser’s intended use thereof; and

(f)                
To review the Materials at Purchaser’s sole cost and
expense.

3.2      
Expiration of Feasibility Period.

 
If any of the matters in Section 3.1 or any other title or survey matters are
unsatisfactory to Purchaser for any reason, or for no reason whatsoever, in
Purchaser’s sole and absolute discretion, then Purchaser shall have the right to
terminate this Agreement by giving written notice to that effect to Seller and
Escrow Agent no later than 5:00 p.m. on or before the date of expiration of the
Feasibility Period.  If Purchaser provides such notice, this Agreement
shall terminate and be of no further force and effect subject to and except for
the Survival Provisions, and Escrow Agent shall return the Initial Deposit to
Purchaser.  If Purchaser fails to provide Seller with written notice of
termination prior to the expiration of the Feasibility Period, Purchaser’s right
to terminate under this Section 3.2 shall be permanently waived and this
Agreement shall remain in full force and effect, the Deposit shall be
non-refundable, and Purchaser’s obligation to purchase the Property shall be
conditional only as provided in Section 9.1.

3.3           
Conduct of
Investigation.

 
Purchaser shall not permit any mechanic’s or materialmen’s liens or any other
liens to attach to the Property by reason of the performance of any work or the
purchase of any materials by Purchaser or any other party in connection with any
Inspections conducted by or for Purchaser.  Prior to conducting any
Inspections, Purchaser shall give Seller not less than forty-eight (48) hours’
prior written notice (except for the inspection of any units occupied by
Tenants, for which seventy-two (72) hours of notice is required).  Seller
shall have the right to have a representative present during all Inspections
conducted at the Property, and, in the case of testing or inspection of any
Tenant Units, Seller may require that Purchaser or Purchaser’s agents be
accompanied by a representative of Seller at all times during Purchaser’s entry
onto the Property.  Purchaser shall take all reasonable actions and implement all protections necessary to ensure that all
actions taken in connection with the investigations and inspections of the
Property, and all equipment, materials and substances generated, used or brought
onto the Property pose no material threat to the safety of persons or the
environment and cause no damage to the Property or other property of Seller or
other persons.  All information made available by Seller to Purchaser in
accordance with this Agreement or obtained by Purchaser in the course of its
Inspections shall be treated as confidential information by Purchaser, and,
prior to the purchase of the Property by Purchaser, Purchaser shall use its best
efforts to prevent its Consultants from divulging such information to any
unrelated third parties except as reasonably necessary to third parties engaged
by Purchaser for the limited purpose of analyzing and investigating such
information for the purpose of consummating the transaction contemplated by this
Agreement.  

3.4.           
Purchaser
Indemnification.  

                      
3.4.1.     
In General.

 
Purchaser shall indemnify, hold harmless and, if requested by Seller (in
Seller’s sole discretion), defend (with counsel approved by Seller) Seller,
together with Seller’s affiliates, parent and subsidiary entities, successors,
assigns, partners, managers, members, employees, officers, directors, trustees,
shareholders, counsel, representatives, agents, Property Manager, Regional
Property Manager, and AIMCO (collectively, including Seller, “Seller’s
Indemnified Parties”), from and against any and all damages, mechanic’s
liens, liabilities, penalties, interest, losses, demands, actions, causes of
action, claims, costs and expenses (including reasonable attorneys’ fees,
including the cost of appeals) (collectively, “Losses”) arising from or
related to Purchaser’s or its Consultants’ entry onto the Property, and any
Inspections or other matters performed by Purchaser with respect to the Property
after the Effective Date.

3.4.2.     
Purchaser’s Conduct / Seller’s
Right to Approve.

 
Notwithstanding anything in this Agreement to the contrary, Purchaser shall not
be permitted to perform any invasive tests on the Property without Seller's
prior written consent, which consent may be withheld in Seller's sole
discretion.  Seller shall have the right, without limitation, to disapprove
any and all entries, surveys, tests (including, without limitation, a Phase II
environmental study of the Property), investigations and other matters that, in
the reasonable judgment of Seller, could result in any injury to the Property or
breach of any contract, or expose Seller to any Losses or violation of
applicable law, or otherwise adversely affect such Property or Seller’s interest
therein.  Purchaser shall use best efforts to minimize disruption to
Tenants in connection with Purchaser’s or its Consultants’ activities pursuant
to this Section.  No consent by Seller to any such activity shall be deemed
to constitute a waiver by Seller or assumption of liability or risk by
Seller.  Purchaser hereby agrees to restore, at Purchaser’s sole cost and
expense, each Property to substantially the same condition existing immediately
prior to Purchaser’s exercise of its rights pursuant to this ARTICLE III. 
Purchaser shall maintain and cause its third party consultants to maintain (a)
casualty insurance and commercial general liability insurance with coverages of
not less than $1,000,000.00 for injury or death to any one person and
$3,000,000.00 for injury or death to more than one person and $500,000.00 with
respect to property damage, and (b) worker’s compensation insurance for all of
their respective employees in accordance with the law of the state(s) in which
the Property is located.  Purchaser shall have delivered proof of the
insurance coverage required pursuant to this Section 3.4.2 to Seller (in the form of a certificate of
insurance) prior to entry on the Property.

3.4.3.     
Survival.

 
The provisions of this Section 3.4 shall
survive the termination of this Agreement.

3.5      
Property Materials. 

         
3.5.1.     
Prior to the Effective Date,
and to the extent the same exist and are in Seller’s possession or reasonable
control (subject to Section 3.5.2), Seller has made the documents set forth on
Exhibit I (together with any other documents or information provided by Seller
or its agents to Purchaser with respect to the Property, the “Materials”)
available at the Property for review and copying by Purchaser at Purchaser’s
sole cost and expense.  In the alternative, at Seller’s option and within
the foregoing time period, Seller may deliver some or all of the Materials to
Purchaser, or make the same available to Purchaser on a secure web site
(Purchaser agrees that any item to be delivered by Seller under this Agreement
shall be deemed delivered to the extent available to Purchaser on such secured
web site).  To the extent that Purchaser determines that any of the
Materials have not been made available or delivered to Purchaser pursuant to
this Section 3.5.1, Purchaser shall notify Seller and Seller shall use
commercially reasonable efforts to deliver the same to Purchaser within 5
Business Days after such notification is received by Seller; provided, however,
that under no circumstances will the Feasibility Period be extended and
Purchaser’s sole remedy will be to terminate this Agreement pursuant to Section
3.2.

         
3.5.2.     
In providing the Materials to
Purchaser, other than Seller’s Representations set forth in Section 7.1, Seller
makes no representation or warranty, express, written, oral, statutory, or
implied, and all such representations and warranties are hereby expressly
excluded and disclaimed.  All Materials are provided for informational
purposes only and, together with all Third-Party Reports, shall be returned by
Purchaser to Seller (or the destruction thereof shall be certified in writing by
Purchaser to Seller) as a condition to return of the Deposit to Purchaser if
this Agreement is terminated for any reason.  Recognizing that the
Materials delivered or made available by Seller pursuant to this Agreement may
not be complete or constitute all of such documents which are in Seller’s
possession or control, but are those that are readily and reasonably available
to Seller, except as expressly set forth in Section 7.1, Purchaser shall not in
any way be entitled to rely upon the completeness or accuracy of the Materials
and will instead in all instances rely exclusively on its own Inspections and
Consultants with respect to all matters which it deems relevant to its decision
to acquire, own and operate the Property.

         
3.5.3.     
In addition to the items set
forth on Schedule 3.5, prior to the Effective Date, Seller has delivered to
Purchaser (or otherwise made available to Purchaser as provided under Section
3.5.1) the most recent rent roll for the Property, which rent roll is that which
Seller uses in the ordinary course of operating the Property (the “Rent
Roll”).  Seller makes no representations or warranties regarding the
Rent Roll other than the express representation set forth in Section
7.1.6. 

         
3.5.4.     
In addition to the items set
forth on Exhibit I, prior to the Effective Date, Seller delivered to Purchaser
(or otherwise made available to Purchaser as provided under Section 3.5.1) a
list of all current Property Contracts (the “Property Contracts
List”).  Seller makes no representations or warranties regarding
the Property Contracts List other than the express representations set forth in
Section 7.1.7.

3.6.           
Property
Contracts.

 
On or before the expiration of the Feasibility Period, Purchaser may deliver
written notice to Seller (the “Property Contracts Notice”), specifying
any Property Contracts of Seller which Purchaser desires to terminate (the
“Terminated Contracts”).  After delivery of the Property Contracts
Notices to Seller, (a) Seller shall mail notices of termination for such
Terminated Contracts on or before four (4) Business Days after the expiration of
the Feasibility Period and the effective date of each such termination shall be
not later than the Closing Date or such later date as is required by the express
terms of the applicable Terminated Contract (and, to the extent that the
effective date of termination of any Terminated Contract is after the Closing
Date, Purchaser shall be deemed to have assumed all of Seller’s obligations
under such Terminated Contract accruing after the Closing Date), (b) if any such
Property Contract cannot by its terms be terminated, it shall be assumed by
Purchaser as of the Closing Date and not be a Terminated Contract, and (c) to
the extent that any such Terminated Contract requires payment of a penalty or
premium for cancellation, Purchaser shall be solely responsible for the payment
of any such cancellation fees or penalties.  There shall be no Terminated
Contracts other than those stated in the Property Contracts Notice and Purchaser
shall assume the obligations under all Property Contracts not listed in the
Property Contracts Notice accruing after the Closing.  To the extent that
any Property Contract to be assumed by Purchaser (including any Property
Contract that, because of advance notice requirements, will be temporarily
assumed by Purchaser pending the effective date of termination after the Closing
Date) is assignable but requires the applicable vendor to consent to the
assignment or assumption of the Property Contract by Seller to Purchaser, then,
prior to the Closing Date, Seller shall be solely responsible for obtaining from
each applicable vendor a consent (each a “Required Assignment Consent”)
to the assignment of the Property Contract by Seller to Purchaser (and the
assumption by Purchaser of all obligations under such Property Contract). 
Seller shall indemnify, hold harmless and, if requested by Purchaser (in
Purchaser’s sole discretion), defend (with counsel approved by such Purchaser)
Purchaser together with Purchaser’s affiliates, parent and subsidiary entities,
successors, assigns, partners, managers, members, employees, officers,
directors, trustees, shareholders, counsel, representatives, and agents
(collectively, including Purchaser, “Purchaser’s Indemnified Parties”),
from and against any and all Losses arising from or related to Seller’s failure
to obtain any Required Assignment Consent.  The provisions of this Section
3.6 shall survive the Closing.

ARTICLE
4
TITLE AND
SURVEY

4.1.           
Title
Documents.

 
Within 1 day after the Effective Date, Seller shall cause the Title Company to
deliver to Purchaser a standard form commitment or preliminary title report
(“Title Commitment”) to provide an American Land Title Association
owner’s title insurance policy for the Property, using the current policy jacket
customarily provided by the Title Insurer, in an amount equal to the Purchase
Price (the “Title Policy”), together with copies of all instruments
identified as exceptions therein (together with the Title Commitment, referred
to herein as the “Title Documents”).  Purchaser and Seller shall
split evenly the cost of the basic premium charged by the
Title Company for the Title Policy.  Purchaser shall be solely responsible
for payment of all costs relating to any endorsements required by Purchaser with
respect to the Title Policy.

4.2.           
Survey.

 
Subject to Section 3.5.2, prior to the Effective Date, Seller delivered to
Purchaser or made available an existing survey of the Property (the “Existing
Survey”).  Purchaser may, at its sole cost and expense, order a new or
updated survey of the Property either before or after the Effective Date (an
“Updated Survey;” and together with the Existing Survey, is referred to
herein as the “Survey”).

4.3.           
Objection and Response
Process.

 
On or before the date which is 3 Business Days before the expiration of the
Feasibility Period (the “Objection Deadline”), Purchaser shall give
written notice (the “Objection Notice”) to the attorneys for Seller of
any matter set forth in the Title Documents and the Survey to which Purchaser
objects (the “Objections”).  If Purchaser fails to tender an
Objection Notice on or before the Objection Deadline, Purchaser shall be deemed
to have approved and irrevocably waived any objections to any matters covered by
the Title Documents and the Survey.  On or before 1 Business Day before the
expiration of the Feasibility Period (the “Response Deadline”), Seller
may, in Seller’s sole discretion, give Purchaser notice (the “Response
Notice”) of those Objections which Seller is willing to cure, if any. 
Seller shall be entitled to reasonable adjournments of the Closing Date to cure
the Objections.  If Seller fails to deliver a Response Notice by the
Response Deadline, Seller shall be deemed to have elected not to cure or
otherwise resolve any matter set forth in the Objection Notice.  If
Purchaser is dissatisfied with the Response Notice or the lack of Response
Notice, Purchaser may, as its exclusive remedy, exercise its right to terminate
this Agreement prior to the expiration of the Feasibility Period in accordance
with the provisions of Section 3.2.  If Purchaser fails to timely exercise
such right, Purchaser shall be deemed to accept the Title Documents and Survey
with resolution, if any, of the Objections set forth in the Response Notice (or
if no Response Notice is tendered, without any resolution of the Objections) and
without any reduction or abatement of the Purchase Price.

4.4.           
Permitted
Exceptions.

 
The Deed delivered pursuant to this Agreement shall be subject to the following,
all of which shall be deemed “Permitted Exceptions”:

(a)               
All matters shown in the Title Documents and the Survey, other
than (a) those Objections, if any, which Seller has agreed to cure pursuant to
the Response Notice under Section 4.3, (b) mechanics’ liens and taxes due and
payable with respect to the period preceding Closing, (c) the standard exception
regarding the rights of parties in possession, which shall be limited to those
parties in possession pursuant to the Leases, (d) the standard exception
pertaining to taxes, which shall be limited to taxes and assessments payable in
the year in which the Closing occurs and subsequent taxes and assessments, and
(e) any liens for money owed up to an amount equal to $250,000.00;

(b)              
All Leases;

(c)               
Applicable zoning and governmental regulations and ordinances;

(d)              
The terms and conditions of this Agreement; and

(e)               
Any defects caused by
Purchaser.                    

4.5.     
[Intentionally
Omitted].    

4.6.           
Subsequently Disclosed
Exceptions.

 
If at any time after the expiration of the Feasibility Period, any update to the
Title Commitment or the Updated Survey discloses any additional item that
materially adversely affects title to the Property which was not disclosed on
any version of or update to the Title Commitment delivered to Purchaser during
the Feasibility Period or the Existing Survey (the “New Exception”),
Purchaser shall have a period of 5 days from the date of its receipt of such
update (the “New Exception Review Period”) to review and notify Seller in
writing of Purchaser’s approval or disapproval of the New Exception.  If
Purchaser disapproves of the New Exception, Seller may, in Seller’s sole
discretion, notify Purchaser as to whether it is willing to cure the New
Exception.  If Seller elects to cure the New Exception, Seller shall be
entitled to reasonable adjournments of the Closing Date to cure the New
Exception.  If Seller fails to deliver a notice to Purchaser within 3 days
after the expiration of the New Exception Review Period, Seller shall be deemed
to have elected not to cure the New Exception.  If Purchaser is
dissatisfied with Seller’s response, or lack thereof, Purchaser may, as its
exclusive remedy elect either:  (i) to terminate this Agreement, in which
event the Deposit shall be promptly returned to Purchaser or (ii) to waive the
New Exception and proceed with the transactions contemplated by this Agreement,
in which event Purchaser shall be deemed to have approved the New
Exception.  If Purchaser fails to notify Seller of its election to
terminate this Agreement in accordance with the foregoing sentence within 6 days
after the expiration of the New Exception Review Period, Purchaser shall be
deemed to have elected to approve and irrevocably waive any objections to the
New Exception.

4.7.           
Purchaser
Financing.

 
Subject to the provisions of Article 5, Purchaser assumes full responsibility to
obtain the funds required for settlement, and Purchaser’s acquisition of such
funds shall not be a contingency to the Closing.

ARTICLE
5
ASSUMED ENCUMBRANCES

5.1.           
In General.

 
Purchaser recognizes and agrees that the Property is presently encumbered by the
Mortgage and certain other security and related documents (collectively, the
“Assumed Encumbrances”) in connection with a loan made to Seller by
Lender.  The Assumed Loan is evidenced by a Note executed by Seller, as
borrower, and payable to the order of Lender.  The Assumed Encumbrances,
together with the underlying Note and any other documents executed by Seller are
collectively referred to herein as, the “Assumed Loan Documents”. 
Seller shall, in addition to the other Materials provided to Purchaser
hereunder, make available to Purchaser true and complete copies of all Assumed
Loan Documents which are in Seller’s possession.

5.2.           
Purchaser’s Obligation to
Assume.

 
Purchaser agrees that, at the Closing, Purchaser (by and through its assignees)
shall assume the obligations of Seller under each of the Assumed Loan Documents
(and Seller shall be released from the terms thereof) first arising after the Closing Date and accept title to the Property subject to
the Assumed Encumbrances. The foregoing is referred to herein as the “Loan
Assumption”.  

5.3.           
Loan Assumption
Application.

 
Purchaser acknowledges that to assume the Assumed Loan, Purchaser will be
required to submit a complete assumption application to Lender in order to
obtain the approval of Lender to the assumption of the Assumed Loan by Purchaser
and release of Seller thereunder. Seller shall contact Lender to request an
application and/or checklist of materials needed from Lender for Purchaser’s
assumption of the Assumed Loan (the “Assumption Application”). 
Purchaser, at its sole cost and expense and within 10 Business Day after receipt
of the Assumption Application, shall make a good faith, commercially reasonable
effort to substantially satisfy the requirements set forth in each Assumption
Application, including submission of the Assumption Application and all
documents and information required in connection therewith, and any fees
associated therewith (collectively a “Loan Assumption Packet”). 
Purchaser shall advise Seller of its submission of the Loan Assumption Packet to
Lender.  Purchaser acknowledges and agrees that Purchaser is solely
responsible for the preparation and submittal of each Loan Assumption Packet,
including the collection of all materials, documents, certificates, financials,
signatures, and other items required to be submitted to Lender in connection
with the Loan Assumption Packet; provided, however, that Seller agrees to
reasonably cooperate with Purchaser, at no cost or expense to such Seller, with
materials, information, or assistance needed by Purchaser for the Loan
Assumption Application, and to promptly advise Purchaser of any material
communication received by Seller from Lender.

5.4.           
Additional Requirements of
Purchaser.

 
In addition to the submission of a Loan Assumption Packet, Purchaser shall:

(a)               
Use good faith and commercially reasonable efforts to provide to
Lender, within a reasonable period of time, any additional documents and/or
information required by the Assumed Loan Documents, and such other information
or documentation as Lender reasonably may request, including, without
limitation, financial statements, income tax returns and other financial
information for Purchaser and any required guarantor;

(b)              
Take all reasonable steps to comply with the assumption guidelines
of Lender in connection with the Loan Assumption.  Purchaser shall be
responsible, at its sole cost and expense, for making good faith, commercially
reasonable efforts to correct and re-submit any reasonable deficiencies noted by
Lender in connection with the Loan Assumption Application.  Seller agrees
that it will reasonably cooperate with Purchaser and Lender, at no cost or
expense to Seller, in connection with Purchaser’s application for approval of
the Loan Assumption;

(c)               
Pay all assumption fees imposed or charged by Lender in connection
with the Assumed Loan, including, without limitation, the reasonable attorneys’
fees of Lender (such fees and expenses collectively being referred to as the
“Assumption Lender Fees”).  

5.5.           
Replacement of
Reserves.

 
At Closing, Seller shall assign to Purchaser all of its right, title and
interest in all reserves, impounds and other accounts required to be maintained
in connection with the Assumed Loan.  To the extent that Lender permits, in
lieu of distributing the current reserves to Seller and having Purchaser re-fund
such amounts, Seller shall receive a credit against the Purchase Price at
Closing equal to the amount of any reserves, impounds and other accounts held by
Lender and associated with the Assumed Loan in question, and all such reserves,
impounds, and other accounts shall be assigned to Purchaser.

5.6.           
Time to Obtain Lender
Approval.

 
Notwithstanding anything to the contrary in this ARTICLE 5, Purchaser shall have
a period of 45 days from the Effective Date (the “Loan Assumption
Deadline”) to obtain Lender’s approval of the assumption by Purchaser of the
Assumed Loan, upon terms and conditions substantially similar to those currently
in the Assumed Loan Documents and/or otherwise reasonably acceptable to
Purchaser, in Purchaser’s sole discretion, and that contains a complete release
of Seller from the obligations thereunder (a “Loan Assumption Approval”);
provided, however, that Purchaser shall use good faith, commercially reasonable
efforts to obtain the Loan Assumption Approval as soon as possible.

5.7.           
Failure to Obtain Assumption
Approval.

 
If Purchaser does not obtain the Loan Assumption Approval on or before the Loan
Assumption Deadline, then Purchaser may either (a) extend the Loan Assumption
Deadline for a period of up to thirty (30) additional days (and the Closing Date
shall be extended as provided in Section 6.1) or (b) terminate this Agreement,
in either event by giving written notice to that effect to Seller and Escrow
Agent no later than 5:00 p.m. on or before the date of expiration of the Loan
Assumption Deadline and, in the case of an extension as provided in (a) above,
Purchaser shall simultaneously deliver to Escrow Agent the amount of
$100,000.00, which amount when received by Escrow Agent shall be added to the
Deposit hereunder, shall be non-refundable (except as otherwise expressly
provided herein with respect to the Deposit), and shall be held, credited and
disbursed in the same manner as provided hereunder with respect to the
Deposit.  In the event Purchaser elects to terminate this Agreement as
provided in (b) above, this Agreement shall automatically terminate and be of no
further force and effect subject to and except for the Survival Provisions, and
Escrow Agent shall return the Deposit to Purchaser.  In the event Purchaser
elects to extend the Loan Assumption Deadline as provided in (a) above, and at
the expiration of such extended Loan Assumption Deadline the Loan Assumption
Approval still has not been obtained despite Purchaser having used best efforts
to obtain such approval, then Purchaser shall have the option to terminate this
Agreement no later than 5:00 p.m. on or before the date of expiration of the
Loan Assumption Deadline, as extended, in which case this Agreement shall
automatically terminate and be of no further force and effect subject to and
except for the Survival Provisions, and Escrow Agent shall return the Deposit to
Purchaser.  If Purchaser fails to send written notice of termination to
Seller and Escrow Agent prior to the expiration of the Loan Assumption Deadline
(as the same may be extended as set forth herein), Purchaser’s right to
terminate under this Section 5.7 shall be permanently waived, Purchaser shall be
deemed to have either waived any contingency relating to obtaining Lender’s
approval to the Loan Assumption and this Agreement shall remain in full force
and effect, the Deposit shall be non-refundable, except for Seller’s default,
and Purchaser’s obligation to purchase the Property shall be conditional only as
provided in Section 9.1.

5.8.           
Documentation of
Assumption.

 
Upon receipt of Loan Assumption Approval, Seller and Purchaser shall work, in
good faith, with Lender to negotiate and execute by the Closing Date a loan assumption agreement (the “Loan
Assumption Agreement”) and any other documents which are necessary or
reasonably required in order for Seller to assign to Purchaser, and for
Purchaser to assume, all of Seller’s liability and obligations under the Assumed
Loan Documents first arising after the Closing and to release Seller, its
guarantors and other obligated parties from all obligations first arising after
the Closing (collectively with the Loan Assumption Agreement, the “Assignment
and Assumption Documents”).  

ARTICLE
6
CLOSING
PROVISIONS

6.1.           
Closing Date.

 
The Closing shall occur on the 15th day following the sooner to occur of (a)
Lender’s written approval of the Loan Assumption, as the same may be extended as
set forth in Section 5.7, or (b) expiration of the Loan Assumption Deadline (the
“Closing Date”), through an escrow with Escrow Agent, whereby Seller,
Purchaser and their attorneys need not be physically present at the Closing and
may deliver documents by overnight air courier or other means.  Seller
shall have the right to extend the Closing Date for a period of up to 30 days,
if necessary to satisfy the condition set forth in Section 9.2(d), by delivering
written notice thereof to Purchaser prior to the scheduled Closing Date.

6.2.           
Seller Closing
Deliveries.

 
No later than one (1) Business Day prior to the Closing Date, Seller shall
deliver to Escrow Agent, each of the following items:

(a)               
A Limited Warranty Deed (the “Deed”) in the form attached
as Exhibit B, subject to the Permitted Exceptions.

(b)              
A Bill of Sale in the form attached as Exhibit C.

(c)               
A General Assignment in the form attached as Exhibit D (the
“General Assignment”).

(d)              
An Assignment of Leases and Security Deposits in the form attached
as Exhibit E (the “Leases Assignment”).

(e)               
A letter in the form attached hereto as Exhibit G prepared by
Purchaser and executed by Seller, notifying each of the Tenants at the Property
of the transfer of the Property to Purchaser (the “Tenant
Notice”).

(f)                
The Assignment and Assumption Documents, as applicable.

(g)               
A closing statement executed by Seller.

(h)               
A title affidavit or at Seller’s option an indemnity, as
applicable, in the customary form reasonably acceptable to Seller to enable
Title Insurer to delete the standard exceptions to the title insurance policy
set forth in this Agreement (other than matters constituting any Permitted
Exceptions and matters which are to be completed or performed post-Closing) to
be issued pursuant to the Title Commitment; provided that such affidavit does not subject Seller to any greater
liability, or impose any additional obligations, other than as set forth in this
Agreement.

(i)                 
A certificate duly executed by Seller stating that Seller is not a
“foreign person” as defined in the Federal Foreign Investment in Real Property
Tax Act of 1980 and the 1984 Tax Reform Act; provided, however, that if Seller
is a disregarded entity for federal income tax purposes, the certificate shall
be furnished by the person recognized as the taxpayer for federal income tax
purposes.

(j)                
Resolutions, certificates of good standing, and such other
organizational documents as Title Insurer shall reasonably require evidencing
Seller’s authority to consummate this transaction.

(k)              
An updated Rent Roll effective as of a date no more than three (3)
Business Days prior to the Closing Date; provided, however, that the content of
such updated Rent Roll shall in no event expand or modify the conditions to
Purchaser’s obligation to close as specified under Section 9.1.

6.3.           
Purchaser Closing
Deliveries.

 
No later than one (1) Business Day prior to the Closing Date (except for the
balance of the Purchase Price which is to be delivered at the time specified in
Section 2.2.3), Purchaser shall deliver to the Escrow Agent (for disbursement to
Seller upon the Closing) the following items with respect to each Property being
conveyed at such Closing:

(a)               
The full Purchase Price (with credit for the Deposit and the
outstanding balance of the Loan to be assumed pursuant to Article 5), plus or
minus the adjustments or prorations required by this Agreement.

(b)              
A title affidavit (or at Purchaser’s option an indemnity)
pertaining to Purchaser’s activity on the Property prior to Closing, in the
customary form reasonably acceptable to Purchaser, to enable Title Insurer to
delete the standard exceptions to the title insurance policy set forth in this
Agreement (other than matters constituting any Permitted Exceptions and matters
which are to be completed or performed post-Closing) to be issued pursuant to
the Title Commitment; provided that such affidavit does not subject Purchaser to
any greater liability, or impose any additional obligations, other than as set
forth in this Agreement.

(c)               
The Assignment and Assumption Documents or counterparts thereto,
as applicable.

(d)              
Any declaration or other statement which may be required to be
submitted to the local assessor or recorder with respect to the terms of the
sale of the Property.

(e)               
A closing statement executed by Purchaser.

(f)                
A counterpart of the General Assignment, countersigned by
Purchaser or Purchaser’s Designated Entity, as applicable.

(g)               
A counterpart of the Leases Assignment, countersigned by Purchaser
or Purchaser’s Designated Entity, as applicable.

(h)               
A counterpart of the Tenant Notices, countersigned by Purchaser or
Purchaser’s Designated Entity, as applicable, to be delivered to the Tenants by
Purchaser promptly following Closing.

(i)                 
Resolutions, certificates of good standing, and such other
organizational documents as Title Insurer shall reasonably require evidencing
Purchaser’s or Purchaser Designated Entities’, as applicable, authority to
consummate this transaction.

6.4.           
Closing Prorations and
Adjustments. 

6.4.1.     
General.

 
All normal and customarily proratable items, including, without limitation,
collected rents, operating expenses, personal property taxes, other operating
expenses and fees, shall be prorated as of the Closing Date, Seller being
charged or credited, as appropriate, for all of the same attributable to the
period up to the Closing Date (and credited for any amounts paid by Seller
attributable to the period on or after the Closing Date, if assumed by
Purchaser) and Purchaser being responsible for, and credited or charged, as the
case may be, for all of the same attributable to the period on and after the
Closing Date.  Seller shall prepare a proration schedule (the “Proration
Schedule”) of the adjustments described in this Section 6.4 at least 2
Business Days prior to Closing.  Such adjustments shall be paid by
Purchaser to Seller (if the prorations result in a net credit to Seller) or by
Seller to Purchaser (if the prorations result in a net credit to Purchaser), by
increasing or reducing the cash to be paid by Purchaser at Closing.

6.4.2.     
Operating
Expenses.

 
All of the operating, maintenance, taxes (other than real estate taxes, such as
rental taxes), and other expenses incurred in operating the Property that Seller
customarily pays, and any other costs incurred in the ordinary course of
business for the management and operation of the Property, shall be prorated on
an accrual basis (collectively, the “Operating Expenses”).  Seller
shall pay all such expenses that accrue prior to the Closing Date and Purchaser
shall pay all such expenses that accrue from and after the Closing Date. 

6.4.3.     
Utilities.

 
The final readings and final billings for utilities will be made if possible as
of the Closing Date, in which case Seller shall be responsible for all such
bills as of the Closing Date and no proration shall be made at the Closing with
respect to utility bills.  Otherwise, a proration shall be made based upon
the parties’ reasonable good faith estimate computed by utilizing the most
recent reading and the most recent bill from the utility provider and a
readjustment made within sixty (60) days after the Closing, if necessary. 
Seller shall be entitled to the return of any deposit(s) posted by it with any
utility company and Seller shall notify each utility company serving the
Property to transfer its account to Purchaser (or terminate the account if
requested by the utility company in question), effective as of noon on the
Closing Date.

6.4.4.     
Real Estate
Taxes.

 
Any real estate ad valorem or similar taxes, including personal property taxes,
for the Property which are a lien for the year in which the Closing occurs, even if such taxes are not yet due and payable, or
any installment of assessments payable in installments which installment is
payable in the calendar year of Closing, shall be prorated to the Closing Date,
based upon actual days involved.  The proration of real property taxes or
installments of assessments shall be based upon the assessed valuation as stated
in the current tax bill and the most current tax rate figures (assuming payment
at the earliest time to allow for the maximum possible discount) for the year in
which the Closing occurs to the extent the same are available; provided,
however, that in the event that actual figures (whether for the assessed value
of the Property, or for the tax rate) for the year of Closing are not available
at the Closing Date, the proration shall be made using one hundred seven and
one-half percent (107.5%) of the last available valuation for the Property and
calculated using the last figures available (assuming payment at the earliest
time to allow for the maximum possible discount).  The proration of real
property taxes or installments of assessments shall be final and not subject to
re-adjustment after Closing.

6.4.5.     
Property
Contracts.

 
Purchaser shall assume at Closing the obligations under the Property Contracts
assumed by Purchaser; however, Operating Expenses shall be prorated under
Section 6.4.2.

6.4.6.     
Leases. 

(a)               
All collected rent (whether fixed monthly rentals, additional
rentals, escalation rentals, or retroactive rentals), shall be prorated as of
the Closing Date (prorated for any partial month).  Purchaser shall receive
all collected rent and income attributable to dates from and after the Closing
Date.  Seller shall receive all collected rent and income attributable to
dates prior to the Closing Date.  Notwithstanding the foregoing, no
prorations shall be made in relation to either (a) non-delinquent rents which
have not been collected as of the Closing Date, or (b) delinquent rents
existing, if any, as of the Closing Date (the foregoing (a) and (b) referred to
herein as the “Uncollected Rents”).  In adjusting for Uncollected
Rents, no adjustments shall be made in Seller’s favor for rents which have
accrued and are unpaid as of the Closing Date, but Purchaser shall pay to Seller
such accrued Uncollected Rents as and when collected by Purchaser. 
Purchaser agrees to bill Tenants of the Property for all Uncollected Rents and
to take reasonable actions to collect Uncollected Rents and shall turn over the
same to Seller promptly after such collection.  After the Closing, Seller
shall have no right to demand payment of and to collect Uncollected Rents
(except to the extent Purchaser has collected such Uncollected Rents but has not
paid the same to Seller).  

(b)              
On the Closing Date, Purchaser shall receive a credit against the
Purchase Price in an amount equal to the received and unapplied balance of all
cash (or cash equivalent) Tenant Deposits existing in Seller’s accounts as of
the Closing Date, including, but not limited to, security, damage or other
refundable deposits or required to be paid by any of the Tenants to secure their
respective obligations under the Leases, together, in all cases, with any
interest payable to the Tenants thereunder as may be required by their
respective Tenant Lease or state law (the “Tenant Security Deposit
Balance”).  Any cash (or cash equivalents) held by Seller which
constitutes the Tenant Security Deposit Balance shall be retained by Seller in
exchange for the foregoing credit against the Purchase Price and shall not be
transferred by Seller pursuant to this Agreement (or any
of the documents delivered at Closing), but the obligation with respect to the
Tenant Security Deposit Balance nonetheless shall be assumed by Purchaser. 
The Tenant Security Deposit Balance shall not include any non-refundable
deposits or fees paid by Tenants to Seller, either pursuant to the Leases or
otherwise.

(c)               
With respect to utility charges and other operating cost
pass-throughs (“Utility Costs”), which are passed through and payable by
Tenants under the Tenant Leases for a Property, there shall be no prorations or
credits at Closing.  Any and all payments for the aforementioned items
received by Purchaser after the Closing shall be retained by Purchaser
regardless of when they were billed (or should have been billed) by
Seller.  Any and all payments for Utility Costs received by Seller prior to
the Closing, even for a period applicable subsequent to the Closing Date, shall
be retained by Seller.  Seller shall have the right to continue to bill
Tenants for Utility Costs through the Closing Date, but only in the ordinary
course of Seller’s business (provided that Seller shall be entitled to submit
bills for Utility Costs to Tenants through the end of July, but at no time
thereafter).  After the Closing Date, Seller’s right to collect such sums
for Utility Costs (including those previously billed for but uncollected as of
the Closing Date) shall cease, provided that Purchaser agrees to take reasonable
actions to collect such Utility Costs sums and shall turn over the same to
Seller promptly after such collection.  In addition, upon the termination
of a Tenant’s tenancy at a Property, Purchaser agrees to bill such Tenant for
any outstanding Utility Costs incurred but not paid during Seller’s ownership of
the Property (regardless of whether billed to such Tenant by Seller prior to
Closing), as such bill will be provided by Seller to Purchaser.  Purchaser
shall have no obligation to pursue collection of such bill, however in the event
either Purchaser or Seller collect on such bill, the amount so collected shall
be shared equally between Purchaser and Seller.

6.4.7.     
Insurance.

 
No proration shall be made in relation to insurance premiums and insurance
policies will not be assigned to Purchaser.

6.4.8.     
Employees.

 
All of Seller’s and Property Manager’s on-site employees shall have their
employment at the Property terminated as of the Closing Date.  

6.4.9.     
Closing Costs.

(a)               
Purchaser shall pay (i) any mortgage or similar taxes on new
financing obtained by Purchaser; (ii) any sales taxes, use taxes, or similar
charges; (iii) one-half (1/2) of the base cost of the Title Policy; (iv) any
fees for endorsements required to be paid by Purchaser with respect to the Title
Policy pursuant to Section 4.1; (v) one-half (1/2) of the customary closing
costs of the Escrow Agent; and (vi) the fees of any counsel or consultant
representing Purchaser in this transaction.

(b)              
Seller shall pay (i) the cost of recording any instruments
required to discharge any liens or encumbrances against Seller’s Property; (ii)
one-half (1/2) of the customary closing costs of the Escrow Agent; (iii) the
fees of any counsel or consultant representing Seller in this transaction; (iv)
all late fees, penalties or subject to all other applicable provisions of this
Agreement; (v) all transfer, sales, use, gross receipts or similar taxes charged
in connection with the transfer of each Property; (vi) one-half (1/2) of the base cost of the Title Policy; and (vii) any other
closing costs or charges customarily borne by a seller of commercial real estate
in the state in which the Property is located which are not expressly provided
to be paid by Purchaser in Section 6.4.9(a).

6.4.10.  Possession.

 
Possession of the Property, subject to the Leases, those Property Contracts
which are not identified as Terminated Contracts (subject to the limitations of
Section 3.6), and the Permitted Exceptions,
shall be delivered to Purchaser on the Closing Date upon release from escrow of
all items to be delivered by Purchaser pursuant to Section 6.3, including, without limitation, the Purchase
Price.  To the extent reasonably available to Seller, originals or copies
of its Leases and Property Contracts, lease files, warranties, guaranties,
operating manuals, keys to the property, and Seller’s books and records relating
to the Property (other than proprietary information) (collectively, “Seller’s
Property-Related Files and Records”) regarding the Property shall be made
available to Purchaser at such Property after the Closing.  Purchaser
agrees, for a period of not less than 3 years after the Closing (the “Records
Hold Period”), to (a) provide and allow Seller reasonable access to Seller’s
Property-Related Files and Records for purposes of inspection and copying
thereof, and (b) reasonably maintain and preserve Seller’s Property-Related
Files and Records.  If at any time after the Records Hold Period, Purchaser
desires to dispose of any Seller’s Property-Related Files and Records, Purchaser
must first provide Seller prior written notice (the “Records Disposal
Notice”).  Seller shall have a period of thirty (30) days after receipt
of the Records Disposal Notice to enter the Property (or such other location
where such records are then stored) and remove or copy those of Seller’s
Property-Related Files and Records that Seller desires to retain. 
Purchaser agrees (i) to include the covenants of this Section 6.4.10 pertaining
to Seller’s Property-Related Files and Records in any management contract for
the Property (and to bind the manager thereunder to such covenants), and (ii) to
bind any future purchaser of the Property to the covenants of this Section
6.4.10 pertaining to Seller’s Property-Related Files and Records.

6.4.11.  Survival.

 
The provisions of this Section 6.4 shall survive
the Closing and delivery of the Deed to Purchaser.

6.5.           
Post Closing
Adjustments.

 
In general, and except as provided in this Agreement, Seller shall be entitled
to all income, and shall pay all expenses, relating to the operation of the
Property for the period prior to the Closing Date and Purchaser shall be
entitled to all income, and shall pay all expenses, relating to the operation of
the Property for the period commencing on and after the Closing Date. 
Purchaser or Seller may request that Purchaser and Seller undertake to re-adjust
any item on the Proration Schedule (or any item omitted therefrom) in accordance
with the provisions of Section 6.4 of this Agreement; provided, however, that
neither party shall have any obligation to re-adjust any items (a) after the
expiration of sixty (60) days after Closing, or (b) subject to such sixty
(60)-day period, unless such items exceed $2,500.00 in magnitude (either
individually or in the aggregate).  The provisions of this Section 6.5
shall survive the Closing and delivery of the Deed to Purchaser.

ARTICLE 7
REPRESENTATIONS, WARRANTIES AND COVENANTS

7.1.           
Seller’s
Representations.

 
Except, in all cases, for any fact, information or condition disclosed in the
Title Documents, the Permitted Exceptions, the Property Contracts, or the
Materials, or which is otherwise known by Purchaser prior to the Closing or
caused by Purchaser, Seller represents and warrants to Purchaser the following
(collectively, the “Seller’s Representations”) as of the Effective Date
and as of the Closing Date (except as provided otherwise below and further
provided that Purchaser’s remedies if any of Seller’s Representations are untrue
as of the Closing Date are limited to those set forth in Section 11.2):

7.1.1.     
Organization.

 
Seller is organized, validly existing and in good standing under the laws of the
State of Maryland and has or at the Closing Date shall have the entity power and
authority to sell and convey the Property and to execute the documents to be
executed by Seller and prior to the Closing will have taken as applicable, all
corporate, partnership, limited liability company or equivalent entity actions
required for the execution and delivery of this Agreement, and the consummation
of the transactions contemplated by this Agreement.  The compliance with or
fulfillment of the terms and conditions hereof will not conflict with, or result
in a breach of, the terms, conditions or provisions of, or constitute a default
under, any contract to which Seller is a party or by which Seller is otherwise
bound, which conflict, breach or default would have a material adverse affect on
Seller’s ability to consummate the transaction contemplated by this Agreement or
on the Property.  This Agreement is a valid, binding and enforceable
agreement against Seller in accordance with its terms;

7.1.2.     
Leases.

 
Other than the Leases, the Property is not subject to any written lease executed
by Seller or, to Seller’s knowledge, any other possessory interests of any
person.  To Seller’s knowledge, (a) the Leases are in full force and effect
according to the terms set forth therein, and (b) such Leases set forth the
entire agreement between Seller, as landlord, and the Tenant with respect to the
premises affected thereby.  To Seller’s knowledge, except as noted in the
Rent Roll, there are no outstanding Tenant defaults in their payment of
Rents.  To Seller’s knowledge, except as set forth on the Rent Roll, Seller
has not received, nor given, any outstanding notice of any breaches or defaults
under the Leases;

7.1.3.     
Contracts.

 
To Seller's knowledge, Seller has delivered or otherwise made available true and
accurate copies of all cable, utility and laundry Property Contracts in Seller's
possession;

7.1.4.     
Prohibited
Person.

 
Seller is not a Prohibited Person and, to Seller’s knowledge, (a) except for
third party persons who hold direct or indirect ownership interests in Seller,
none of Seller’s affiliates or parent entities is a Prohibited Person; (b)
except for third party persons who hold direct or indirect ownership interests
in Seller, the Property is not the property of or beneficially owned by a
Prohibited Person; and (c) except for third party persons who hold direct or
indirect ownership interests in Seller, the Property is not the proceeds of
specified unlawful activity as defined in 18 U.S.C. § 1956(c)(7);

7.1.5.     
Pending
Actions.

 
Except as set forth on the Seller Information Schedule and for (a) any actions
by Seller to evict Tenants under its Leases, or (b) any matter covered by Seller’s current insurance policy(ies), to Seller’s
knowledge, there are no actions, proceedings, litigation or governmental
investigations or condemnation actions either pending or threatened against the
Property;

7.1.6.     
Rent Roll.

 
As of the date of its delivery, to Seller’s knowledge, the Rent Roll is accurate
and complete in all material respects, and includes a list of all Tenants under
the Leases, the term of each Lease, the rental paid thereunder, the Tenant
Deposits, if any, held by Seller in connection therewith, and the occupancy
status of all units at the Property (including whether a unit is “down”); 

7.1.7.     
Property Contracts
List.

 
As of the date of its delivery, to Seller’s knowledge, the Property Contracts
List is accurate in all material respects.

7.1.8.     
Operating
Statements.

 
To Seller’s knowledge, the Operating Statement provided by Seller with respect
to the Property is accurate and complete in all material respects;

7.1.9.     
No Violation.

 
To Seller’s knowledge, Seller has not received any written notice from a
governmental agency of any uncured material violations of any federal, state,
county or municipal law, ordinance, order, regulation or requirement affecting
the Property other than normal regulatory correspondence from HUD, as
applicable, and to Seller’s knowledge, without inquiry, the Property is not in
violation of any law, ordinance, regulation, rule, order or requirement
applicable to the Property;

7.1.10.  Property Contracts.

 
To Seller’s knowledge, Seller has not received any written notice of any
material default by Seller under any Property Contracts that will not be
terminated on the Closing Date; 

7.1.11.  Assumed Loan Documents.

 
To Seller’s knowledge, there are no defaults under the Assumed Loan Documents;
and

7.1.12.  Hazardous Materials.

 
To Seller’s knowledge and except as disclosed in a Phase I, Phase II, and any
other environmental assessments and audits provided to Purchaser as part of the
Materials, (a) no hazardous or toxic materials or other substances regulated by
applicable federal or state environmental laws are stored by Seller on, in or
under the Property in quantities which violate applicable laws governing such
materials or substances, and (B) the Property is not used by Seller for the
storage, treatment, generation or manufacture of any hazardous or toxic
materials or other substances in a manner which would constitute a violation of
applicable federal or state environmental laws.

7.2.           
AS-IS.

 
Except for Seller’s Representations set forth in Section 7.1, and except in the event of fraud by Seller, the
Property is expressly purchased and sold “AS IS,” “WHERE IS,” and “WITH ALL
FAULTS.”  The Purchase Price and the terms and conditions set forth herein
are the result of arm’s-length bargaining between entities familiar with
transactions of this kind, and said price, terms and conditions reflect the fact
that Purchaser shall have the benefit of, and is not relying upon, except for
Seller’s Representations set forth in Section 7.1,
any information provided by Seller or statements, representations or warranties,
express or implied, made by or enforceable directly against Seller, including,
without limitation, any relating to the value of the Property, the physical or
environmental condition of the Property, any state, federal, county or local law, ordinance, order or permit; or the
suitability, compliance or lack of compliance of the Property with any
regulation, or any other attribute or matter of or relating to the Property
(other than any covenants of title contained in the Deed and Seller’s
Representations).  Purchaser agrees that, except for Seller’s
Representations set forth in Section 7.1, Seller
shall not be responsible or liable to Purchaser for any defects, errors or
omissions, or on account of any conditions affecting the Property. 
Purchaser, its successors and assigns, and anyone claiming by, through or under
Purchaser, hereby fully releases each of Seller’s Indemnified Parties from, and
irrevocably waives its right to maintain, any and all claims and causes of
action that it or they may now have or hereafter acquire against any Seller’s
Indemnified Parties with respect to any and all Losses arising from or related
to any defects, errors, omissions or other conditions affecting the Property,
except for Seller’s Representations set forth in Section 7.1.  Purchaser represents and warrants that, as
of the date hereof and as of the Closing Date, it has and shall have reviewed
and conducted such independent analyses, studies (including, without limitation,
environmental studies and analyses concerning the presence of lead, asbestos,
water intrusion and/or fungal growth and any resulting damage, PCBs and radon in
and about the Property), reports, investigations and inspections as it deems
appropriate in connection with the Property.  If Seller provides or has
provided any documents, summaries, opinions or work product of consultants,
surveyors, architects, engineers, title companies, governmental authorities or
any other person or entity with respect to the Property, including, without
limitation, the offering prepared by Seller, Purchaser and Seller agree that
Seller has done so or shall do so only for the convenience of the parties,
Purchaser shall not rely thereon and the reliance by Purchaser upon any such
documents, summaries, opinions or work product shall not create or give rise to
any liability of or against any Seller’s Indemnified Parties.  Except for
Seller’s Representations set forth in Section 7.1
Purchaser shall rely only upon any title insurance obtained by Purchaser with
respect to title to the Property.  Purchaser acknowledges and agrees that,
except for Seller’s Representations set forth in Section 7.1, no representation has been made and no
responsibility is assumed by Seller with respect to current and future
applicable zoning or building code requirements or the compliance of the
Property with any other laws, rules, ordinances or regulations, the financial
earning capacity or expense history of the Property, the continuation of
contracts, continued occupancy levels of the Property, or any part thereof, or
the continued occupancy by tenants of any Leases or, without limiting any of the
foregoing, occupancy at Closing.  Prior to Closing, Seller shall have the
right, but not the obligation, to enforce its rights against any and all of the
Property occupants, guests or tenants.  Purchaser agrees that the departure
or removal, prior to Closing, of any of such guests, occupants or tenants shall
not be the basis for, nor shall it give rise to, any claim on the part of
Purchaser, nor shall it affect the obligations of Purchaser under this Agreement
in any manner whatsoever; and Purchaser shall close title and accept delivery of
the Deed with or without such tenants in possession and without any allowance or
reduction in the Purchase Price under this Agreement.  Except for Seller’s
Representations set forth in Section 7.1, Purchaser
hereby releases Seller from any and all claims and liabilities relating to the
foregoing matters.  The provisions of this Section 7.2 shall survive the
Closing and delivery of the Deed to Purchaser.

7.3.           
Survival of Seller’s
Representations.

 
Seller and Purchaser agree that Seller’s Representations shall survive the
Closing Date for a period of one (1) year (the “Survival Period”). 
Seller shall have no liability for claims made after the Survival Period with
respect to any of its Seller’s Representations contained herein.  The
liability for Seller for breach of its Seller’s Representations shall be limited
to, and capped at, Four Hundred Fifty Thousand and No/100
Dollars ($450,000.00).  Such cap on liability shall apply for any
individual breach or in the aggregate for all breaches of Seller’s
Representations.  Purchaser shall not be entitled to bring any claim for a
breach of Seller’s Representations unless the claim for damages (either in the
aggregate or as to any individual claim) by Purchaser exceeds Five Thousand and
No/100 Dollars ($5,000.00).  In the event that Seller breaches any
representation contained in Section 7.1 and
Purchaser had knowledge of such breach prior to the Closing Date, Purchaser
shall be deemed to have waived any right of recovery, and Seller shall not have
any liability in connection therewith.

7.4.           
Definition of Seller’s
Knowledge.

 
Any representations and warranties made “to the knowledge of Seller” (or words
of similar import) shall not be deemed to imply any duty of inquiry.  For
purposes of this Agreement, the term Seller’s “knowledge” shall mean and refer
only to actual knowledge of the Regional Property Manager of Seller, and shall
not be construed to refer to the knowledge of any other partner, officer,
director, agent, employee or representative of Seller, or any affiliate of
Seller, or to impose upon Regional Property Manager any duty to investigate the
matter to which such actual knowledge or the absence thereof pertains, or to
impose upon Regional Property Manager any individual personal liability.

7.5.           
Representations And Warranties
Of Purchaser.

 
For the purpose of inducing Seller to enter into this Agreement and to
consummate the sale and purchase of the Property in accordance herewith,
Purchaser represents and warrants to Seller the following as of the Effective
Date and as of the Closing Date:

7.5.1.     
Organization.

 
Purchaser is organized, validly existing and in good standing under the laws of
the state of its formation;

7.5.2.     
Authority.

 
Purchaser, acting through any of its duly empowered and authorized officers or
members, has all necessary entity power and authority to own and use its
properties and to transact the business in which it is engaged, and has full
power and authority to enter into this Agreement, to execute and deliver the
documents and instruments required of Purchaser herein, and to perform its
obligations hereunder; and no consent of any of Purchaser’s partners, directors,
officers or members are required to so empower or authorize Purchaser.  The
compliance with or fulfillment of the terms and conditions hereof will not
conflict with, or result in a breach of, the terms, conditions or provisions of,
or constitute a default under, any contract to which Purchaser is a party or by
which Purchaser is otherwise bound, which conflict, breach or default would have
a material adverse affect on Purchaser’s ability to consummate the transaction
contemplated by this Agreement.  This Agreement is a valid, binding and
enforceable agreement against Purchaser in accordance with its terms;

7.5.3.     
Pending
Litigation.

 
No pending or, to the knowledge of Purchaser, threatened litigation exists which
if determined adversely would restrain the consummation of the transactions
contemplated by this Agreement or would declare illegal, invalid or non-binding
any of Purchaser’s obligations or covenants to Seller;

7.5.4.     
Prohibited
Person.

 
Purchaser is not a Prohibited Person.  To Purchaser’s knowledge, none of
its investors, affiliates or brokers or other agents (if any), acting or
benefiting in any capacity in connection with this Agreement is a Prohibited
Person.  The funds or other assets Purchaser will
transfer to Seller under this Agreement are not the property of, or are
beneficially owned, directly or indirectly, by a Prohibited Person; and

7.5.5.     
Source of
Funds.

 
The funds or other assets Purchaser will transfer to Seller under this Agreement
are not the proceeds of specified unlawful activity as defined by 18 U.S.C.
§ 1956(c)(7).

7.5.6.     
Survival.

 
The provisions of this Section 7.5 shall survive the Closing and delivery
of the Deed to Purchaser.

ARTICLE
8
OPERATION OF THE PROPERTY

8.1.           
Leases and Property
Contracts.

 
During the period of time from the Effective Date to the Closing Date, in the
ordinary course of business Seller may enter into new Property Contracts, new
Leases, renew existing Leases or modify, terminate or accept the surrender or
forfeiture of any of the Leases, modify any Property Contracts, or institute and
prosecute any available remedies for default under any Lease or Property
Contract without first obtaining the written consent of Purchaser; provided,
however, Seller agrees that any such new Property Contracts or any new or
renewed Leases shall not have a term in excess of 1 year without the prior
written consent of Purchaser, which consent shall not be unreasonably withheld,
conditioned or delayed, and that any such new Property Contract shall be able to
be terminated with notice not to exceed thirty (30) days and without the payment
of any penalty or premium.  Seller shall endeavor, but shall not be
required, to provide to Purchaser weekly Rent Rolls and a weekly summary of all
leasing activity until the Closing Date.  

8.2.           
General Operation of
Property.

 
Except as specifically set forth in this ARTICLE 8, Seller shall operate the
Property after the Effective Date in the ordinary course of business, and except
as necessary in Seller’s sole discretion to address (a) any life or safety issue
at the Property or (b) any other matter which in Seller’s reasonable discretion
materially adversely affects the use, operation or value of the Property, Seller
will not make any material alterations to the Property or remove any material
Fixtures and Tangible Personal Property without the prior written consent of
Purchaser, which consent shall not be unreasonably withheld, denied or
delayed.  Between the Effective Date hereof and the Closing Date, Seller
will cause vacant Tenant Units at the Property to be “made ready” for reletting
and occupancy in accordance with Seller’s current standards and timetable for
turning Tenant Units over.  It is not the intention of Seller to have all
of the vacant Tenant Units “made ready” as of the Closing Date, but only those
units that would have been “made ready” in the ordinary course of
business.  To the extent that at Closing there are Tenant Units which have
been vacant for five (5) days or more and as to which the vacant Tenant Unit
renovation work has not been substantially completed, then Purchaser shall be
entitled to a credit of $500 at Closing for each such Tenant Unit.

8.3.           
Liens.

 
Other than utility easements and temporary construction easements granted by
Seller in the ordinary course of business, Seller covenants that it will not
voluntarily create or cause any lien or encumbrance to attach to the Property
between the Effective Date and the Closing Date (other
than Leases and Property Contracts as provided in Section 8.1) unless Purchaser approves such lien or
encumbrance, which approval shall not be unreasonably withheld or delayed. 
If Purchaser approves any such subsequent lien or encumbrance, the same shall be
deemed a Permitted Encumbrance for all purposes hereunder.

ARTICLE
9
CONDITIONS
PRECEDENT TO CLOSING

9.1.           
Purchaser’s Conditions to
Closing.

 
Subject to the provisions of this Section 9.1,
Purchaser’s obligation to close under this Agreement shall be subject to and
conditioned upon the fulfillment of each and all of the following conditions
precedent:

(a)               
All of the documents required to be delivered by Seller to
Purchaser at the Closing pursuant to the terms and conditions hereof shall have
been delivered;

(b)              
Each of the Seller’s Representations shall be true in all material
respects as of the Closing Date;

(c)               
Seller shall have complied with, fulfilled and performed in all
material respects each of the covenants, terms and conditions to be complied
with, fulfilled or performed by Seller hereunder; 

(d)              
None of Seller nor any of Seller’s general partners, members,
shareholder, or owners shall be a debtor in any bankruptcy proceeding nor shall
have been in the last six (6) months a debtor in any bankruptcy proceeding;
and

(e)               
The Title Insurer shall be prepared to issue the Title Policy,
subject to no exceptions other than Permitted Exceptions. 

Notwithstanding
anything to the contrary, there are no other conditions on Purchaser’s
obligation to Close except as expressly set forth in this Section 9.1.  If any condition set forth in this
Section 9.1 is not met, Purchaser may (a)
waive any of the foregoing conditions and proceed to Closing on the Closing Date
with no offset or deduction from the Purchase Price, or (b) notify Seller in
writing of Purchaser’s decision to terminate this Agreement and receive a return
of the Deposit.  

9.2.           
Seller’s Conditions to
Closing.

 
Without limiting any of the rights of Seller elsewhere provided for in this
Agreement, Seller’s obligation to close with respect to conveyance of the
Property under this Agreement shall be subject to and conditioned upon the
fulfillment of the following conditions precedent:

(a)               
All of the documents and funds required to be delivered by
Purchaser to Seller at the Closing pursuant to the terms and conditions hereof
shall have been delivered;

(b)              
Each of the representations, warranties and covenants of Purchaser
contained herein shall be true in all material respects as of the Closing
Date;

(c)               
Purchaser shall have complied with, fulfilled and performed in all
material respects each of the covenants, terms and conditions to be complied
with, fulfilled or performed by Purchaser hereunder;

(d)              
Seller shall have received all consents, documentation and
approvals necessary to consummate and facilitate the transactions contemplated
hereby, including, without limitation, a tax free exchange pursuant to Section
14.18 (and the amendment of Seller’s (or Seller’s affiliates’) partnership or
other organizational documents in connection therewith, (i) from Seller’s
partners, members, managers, shareholders or directors to the extent required by
Seller’s (or Seller’s affiliates’) organizational documents, and (ii) as
required by law; 

(e)               
The Loan Assumption shall have been approved by Lender;
and

(f)                
There shall not be pending or, to the knowledge of either
Purchaser or Seller, any litigation or threatened litigation which, if
determined adversely, would restrain the consummation of any of the transactions
contemplated by this Agreement or declare illegal, invalid or nonbinding any of
the covenants or obligations of the Purchaser;

If
any of the foregoing conditions to Seller’s obligation to close with respect to
conveyance of the Property under this Agreement are not met, Seller may (a)
waive any of the foregoing conditions and proceed to Closing on the Closing
Date, or (b) terminate this Agreement, and, if such failure constitutes a
default by Purchaser, exercise any of its remedies under Section 10.1. 

ARTICLE
10
BROKERAGE
CONDITIONS

10.1.       
Indemnity.

 
Seller represents and warrants to Purchaser that it has dealt only with
Apartment Realty Advisors (“Broker”) in connection with this
Agreement.  Seller and Purchaser each represents and warrants to the other
that, other than Broker, it has not dealt with or utilized the services of any
other real estate broker, sales person or finder in connection with this
Agreement, and each party agrees to indemnify, hold harmless, and, if requested
in the sole and absolute discretion of the indemnitee, defend (with counsel
approved by the indemnitee) the other party from and against all Losses relating
to brokerage commissions and finder’s fees arising from or attributable to the
acts or omissions of the indemnifying party.  The provisions of this
Section 10.1 shall survive the termination
of this Agreement, and if not so terminated, the Closing and delivery of the
Deed to Purchaser.

10.2.       
Broker
Commission.

 
If the Closing occurs, Seller agrees to pay Broker a commission or fee, as
applicable, according to the terms of a separate contract.  Broker shall
not be deemed a party or third party beneficiary of this Agreement.  As a
condition to Seller’s obligation to pay the commission or
fee, Broker shall execute the signature page for Broker attached hereto solely
for purposes of confirming the matters set forth therein.

ARTICLE
11
DEFAULTS AND
REMEDIES

11.1.       
Purchaser
Default.

 
If Purchaser defaults in its obligations hereunder to (a) deliver either the
Initial Deposit or the Additional Deposit, or (b) deliver the Purchase Price at
the time required by Section 2.2.3 and, as a result, does not close on the
purchase of the Property on the Closing Date, then, immediately and without
notice or cure, Purchaser shall forfeit the Deposit and neither party shall be
obligated to proceed with the purchase and sale of the Property.  If
Purchaser defaults in any of its other representations, warranties or
obligations under this Agreement (including, without limitation, the failure to
deliver to Escrow Agent the deliveries specified under Section 6.3 on the date required thereunder), and such default
continues for more than ten (10) days after written notice from Seller, then
Purchaser shall forfeit the Deposit and neither party shall be obligated to
proceed with the purchase and sale of the Property.  The Deposit
constitutes liquidated damages and recourse to the Deposit is, except for
Purchaser’s indemnity and confidentiality obligations hereunder, Seller’s sole
and exclusive remedy for Purchaser’s failure to perform its obligation to
purchase the Property or any breach of a representation or warranty by Purchaser
hereunder.  Seller expressly waives the remedies of specific performance
and additional damages for any default by Purchaser hereunder.  SELLER AND
PURCHASER ACKNOWLEDGE THAT SELLER’S DAMAGES WOULD BE DIFFICULT TO DETERMINE, AND
THAT THE DEPOSIT IS A REASONABLE ESTIMATE OF SELLER’S DAMAGES RESULTING FROM A
DEFAULT BY PURCHASER IN ITS OBLIGATION TO PURCHASE THE PROPERTY.  SELLER
AND PURCHASER FURTHER AGREE THAT THIS SECTION 11.1 IS INTENDED TO AND DOES LIQUIDATE THE AMOUNT OF
DAMAGES DUE SELLER, AND SHALL BE SELLER’S EXCLUSIVE REMEDY AGAINST PURCHASER,
BOTH AT LAW AND IN EQUITY, ARISING FROM OR RELATED TO A BREACH BY PURCHASER OF
ITS OBLIGATION TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT,
OTHER THAN WITH RESPECT TO PURCHASER’S INDEMNITY AND CONFIDENTIALITY OBLIGATIONS
HEREUNDER.

11.2.       
Seller
Default.

 
If Seller, prior to the Closing, defaults in its covenants, or obligations under
this Agreement, including to sell the Property as required by this Agreement and
such default continues for more than 10 days after written notice from
Purchaser, then, at Purchaser’s election and as Purchaser’s sole and exclusive
remedy, either (a) this Agreement shall terminate, and all payments and things
of value, including the Deposit, provided by Purchaser hereunder shall be
returned to Purchaser and Purchaser may recover, as its sole recoverable damages
(but without limiting its right to receive a refund of the Deposit), its direct
and actual out-of-pocket expenses and costs (documented by paid invoices to
third parties) in connection with this transaction, which damages shall not
exceed $50,000 in aggregate, or (b) subject to the conditions below, Purchaser
may seek specific performance of Seller’s obligation to deliver the Deed
pursuant to this Agreement (but not damages).  Purchaser may seek specific
performance of Seller’s obligation to deliver the Deed pursuant to this
Agreement only if, as a condition precedent to initiating
such litigation for specific performance, Purchaser first shall (i) deliver all
Purchaser Closing documents to Escrow Agent in accordance with the requirements
of this Agreement, including, without limitation, Sections 2.2.3 and 6.3 (with
the exception of Section 6.3(a)); (ii) not otherwise be in default under
this Agreement; and (iii) file suit therefor with the court on or before the
90th day after the Closing Date; if Purchaser fails to file an action for
specific performance within 90 days after the Closing Date, then Purchaser shall
be deemed to have elected to terminate the Contract in accordance with
subsection (a) above.  Purchaser agrees that it shall promptly deliver to
Seller an assignment of all of Purchaser’s right, title and interest in and to
(together with possession of) all plans, studies, surveys, reports, and other
materials paid for with the out-of-pocket expenses reimbursed by Seller pursuant
to the foregoing sentence.  SELLER AND PURCHASER FURTHER AGREE THAT THIS
SECTION 11.2 IS INTENDED TO AND DOES LIMIT THE AMOUNT OF DAMAGES DUE PURCHASER
AND THE REMEDIES AVAILABLE TO PURCHASER, AND SHALL BE PURCHASER’S EXCLUSIVE
REMEDY AGAINST SELLER, BOTH AT LAW AND IN EQUITY ARISING FROM OR RELATED TO A
BREACH BY SELLER OF ITS COVENANTS OR ITS OBLIGATION TO CONSUMMATE THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  UNDER NO CIRCUMSTANCES MAY
PURCHASER SEEK OR BE ENTITLED TO RECOVER ANY SPECIAL, CONSEQUENTIAL, PUNITIVE,
SPECULATIVE OR INDIRECT DAMAGES, ALL OF WHICH PURCHASER SPECIFICALLY WAIVES,
FROM SELLER FOR ANY BREACH BY SELLER, OF ITS COVENANTS OR ITS OBLIGATIONS UNDER
THIS AGREEMENT.  PURCHASER SPECIFICALLY WAIVES THE RIGHT TO FILE ANY LIS
PENDENS OR ANY LIEN AGAINST THE PROPERTY UNLESS AND UNTIL IT HAS IRREVOCABLY
ELECTED TO SEEK SPECIFIC PERFORMANCE OF THIS AGREEMENT AND HAS FILED AND IS
DILIGENTLY PURSUING AN ACTION SEEKING SUCH REMEDY.

ARTICLE
12
RISK OF LOSS OR
CASUALTY

12.1.       
Major Damage.

 
In the event of Major Damage to the Property prior to the Closing Date, then
Seller shall have no obligation to repair such Major Damage and shall notify
Purchaser in writing of such damage or destruction (the “Damage
Notice”).  Within ten (10) days after Purchaser’s receipt of the Damage
Notice, Purchaser may elect at its option to give a Termination Notice for the
damaged Property to Seller’s Representative.  If Purchaser does not elect
to terminate this Agreement with respect to the damaged Property, this
transaction shall be closed in accordance with the terms of this Agreement
either, at the election of Seller, (a) for the full Purchase Price for the
damaged Property notwithstanding any such damage or destruction, and Purchaser
shall, at Closing, execute and deliver an assignment and assumption (in a form
reasonably required by Seller) of Seller’ rights and obligations with respect to
the insurance claim and related to such casualty, and thereafter Purchaser shall
receive all remaining insurance proceeds pertaining to such claim (plus a credit
against the Purchase Price at Closing in the amount of any deductible payable by
Seller in connection therewith and not spent by Seller for demolition, site
cleaning, restoration or other repairs); or (b) Purchaser shall receive a credit
against the Purchase Price for the full replacement costs of repair to the
Property, plus, to the extent covered by Seller’s insurance policy, any costs
required pursuant to local code or zoning requirements, as
determined by an independent third party reasonably acceptable to Seller and
Purchaser.  In the event Seller elects to assign its rights and obligations
with respect to the insurance claim and related casualty to Purchaser as
provided above, and if an AIMCO employee is the adjuster for the claim related
thereto, Seller covenants and agrees that the adjuster shall act in accordance
with standard insurance industry protocols in processing such claim (including,
without limitation, the time taken to process such claim). 

12.2.       
Minor Damage.

 
In the event of damage to the Property which does not constitute Major Damage,
this transaction shall be closed in accordance with the terms of this Agreement,
notwithstanding the damage or destruction; provided, however, Seller shall make
such repairs to the extent of any recovery from insurance carried on such
Property if such repairs can be reasonably effected before the Closing. 
Seller shall endeavor to deliver written notice to Purchaser of any material
physical damage to any Tenant Unit promptly after learning of such damage. 
Subject to Section 12.3, if Seller is unable to effect such repairs prior to
Closing, then Purchaser shall, at Closing, execute and deliver an assignment and
assumption (in a form reasonably required by Seller) of Seller’s rights and
obligations with respect to the insurance claim and related to such casualty,
and thereafter Purchaser shall receive all remaining insurance proceeds
pertaining to such claim (plus a credit at Closing against the Purchase Price in
the amount of any deductible payable by Seller in connection therewith and not
spent by Seller for demolition, site cleaning, restoration or other
repairs).  Any such claim that is assigned to Purchaser shall be processed
as described in Section 12.1.  In the alternative, and at the sole option
of Seller, Seller may elect to give to Purchaser, at Closing, a credit against
the Purchase Price for the full replacement costs of repair to the Property,
plus, to the extent covered by Seller’s insurance policy, any costs required
pursuant to local code or zoning requirements, as determined by an independent
third party reasonably acceptable to Seller and Purchaser.  

12.3.       
Repairs.

 
To the extent that Seller elects to commence any repair, replacement or
restoration of its damaged Property prior to Closing, then Seller shall be
entitled to receive and apply available insurance proceeds to any portion of
such repair, replacement or restoration completed or installed prior to Closing,
with Purchaser being responsible for completion of such repair, replacement or
restoration after Closing from the balance of any available insurance
proceeds.  To the extent that any repair, replacement or restoration of a
casualty has been commenced by Seller prior to Closing, then the Property
Contracts for such Property shall include, and Purchaser shall assume at
Closing, all construction and other contracts entered into by Seller in
connection with such repair, replacement or restoration.  The provisions of
this Section 12.3 shall survive the Closing and delivery of the Deed to
Purchaser.

12.4.       
Replacement of Insurance
Carrier.

 
In the event Seller elects to replace its existing property and casualty
insurance coverage after the Effective Date with coverage by a third party
insurer, such new policy shall not be for less coverage than carried by Seller
as of the Effective Date.

ARTICLE 13
EMINENT DOMAIN

If,
at the time of Closing, any material part of the Property is (or previously has
been) acquired, or is about to be acquired, by any governmental agency by the
powers of eminent domain or transfer in lieu thereof (or in the event that at
such time there is any notice of any such acquisition or intent to acquire by
any such governmental agency), Purchaser shall have the right, at Purchaser’s
option, to give a Termination Notice to Seller.  If Purchaser does not
elect to terminate this Agreement, this Agreement shall continue in full force
and effect, provided that Seller shall assign to Purchaser (without recourse) at
the Closing the rights of Seller to the awards, if any, for the taking, and
Purchaser shall be entitled to contest the award and to receive and keep all
awards for the taking of the Property or such portion thereof. 

ARTICLE
14
MISCELLANEOUS PROVISIONS

14.1.       
Binding Effect of
Agreement.

 
This Agreement shall not be binding on any party until executed by both
Purchaser and Seller.  The Escrow Agent’s execution of this Agreement shall
not be a prerequisite to its effectiveness.

14.2.       
Exhibits and
Schedules.

 
All Exhibits and Schedules to this Agreement, whether or not annexed hereto, are
a part of this Agreement for all purposes.

14.3.       
Purchaser’s
Assignees.

 
This Agreement is not assignable by Purchaser without first obtaining the prior
written approval of Seller, except that Purchaser may assign this Agreement to
one or more entities so long as (a) Purchaser is an affiliate of the purchasing
entity(ies) (a “Purchaser’s Designated Entity”), (b) Purchaser is not
released from its liability hereunder, and (c) Purchaser provides written
notice to Seller of any proposed assignment no later than ten (10) days prior to
the Closing Date.  As used herein, an affiliate is a person or entity
controlled by, under common control with, or controlling another person or
entity.

14.4.       
Binding
Effect.

 
Subject to Section 14.3, this Agreement shall be binding upon and inure to the
benefit of Seller and Purchaser, and their respective successors, heirs and
permitted assigns.

14.5.       
Captions.

 
The captions, headings, and arrangements used in this Agreement are for
convenience only and do not in any way affect, limit, amplify, or modify the
terms and provisions hereof.

14.6.       
Number And Gender Of
Words.

 
Whenever herein the singular number is used, the same shall include the plural
where appropriate, and words of any gender shall include each other gender where
appropriate.

14.7.       
Notices.

 
All notices, demands, requests and other communications required or permitted
hereunder shall be in writing, and shall be (a) personally delivered with a
written receipt of delivery; (b) sent by a nationally recognized overnight
delivery service requiring a written acknowledgement of
receipt or providing a certification of delivery or attempted delivery; (c) sent
by certified mail, return receipt requested; or (d) sent by confirmed facsimile
or electronic mail (e-mail) transmission with an original copy thereof
transmitted to the recipient by one of the means described in subsections (a)
through (c) no later than three (3) Business Days thereafter.  All notices
shall be deemed effective when actually delivered as documented in a delivery
receipt; provided, however, that if the notice was sent by overnight courier or
mail as aforesaid and is affirmatively refused or cannot be delivered during
customary business hours by reason of the absence of a signatory to acknowledge
receipt, or by reason of a change of address with respect to which the addressor
did not have either knowledge or written notice delivered in accordance with
this paragraph, then the first attempted delivery shall be deemed to constitute
delivery.  Each party shall be entitled to change its address for notices
from time to time by delivering to the other party notice thereof in the manner
herein provided for the delivery of notices.  All notices shall be sent to
the addressee at its address set forth following its name below:

	
If to
Purchaser:
	
JRK Birchmont Advisors, LLC
11766 Wilshire Boulevard, Suite
1450
Los Angeles, California  90025
Attention:  Mr. Robert
Lee and Mr. John McKee
Telephone No.:  (310) 268-8344
Facsimile
No.:  (310) 268-7943
Email: 
rlee@jrkbirchmont.com
           
jmckee@jrkpropholdings.com

	
with a
copy to:
	
Epport, Richman & Robbins,
LLP
1875 Century ParkEast, Suite
800
Los Angeles, California  90067
Attention:  Mark
Robbins, Esq./Christopher Campbell, Esq.
Telephone No.:  (310)
785-0885
Facsimile No.:  (310) 785-0787
Email: 
mrobbins@erlaw.com
           
ccampbell@erlaw.com

	
If to
Seller:
	
c/o AIMCO
4582 South Ulster
Street Parkway, Suite 1100
Denver, Colorado 
80237
Attention:  Mark Reoch
Telephone No.:  (303)
691-4337
Facsimile No.:   (303)
300-3261
Email:   Mreoch@ aimco.com

	
with a copy to:
	
AIMCO
4582 South Ulster Street
Parkway, Suite 1100
Denver, Colorado  80237
Attention: 
John Spiegleman, Esq.
Telephone No.:  (303) 691-4303
Facsimile
No.:  (303) 300-3260
Email:  
John.Spiegleman@aimco.com

	
and:
	
Ballard Spahr LLP
1225 17th
Street, Suite 2300
Denver, Colorado 
80202-5596
Attention:  Beverly Quail, Esq. / Joseph E. Lubinski,
Esq.
Telephone No.:  (303) 292-2400
Facsimile No.:  (303)
296-3956
Email: 
quail@ballardspahr.com
           
lubinskij@ballardspahr.com

	
If to Escrow
Agent:
	
Stewart Title Guaranty
Company
1980 Post Oak Boulevard, Suite 610
Houston, Texas 
77056
Attention:  Wendy Howell, National Commercial Closing
Specialist
Telephone:  (800) 729-1906
Facsimile No.: 
(713) 552-1703
Email: 
whowell@stewart.com

or
to such other address, facsimile number or party as either party may have
furnished to the other in writing in accordance herewith, except that notices of
change of address or addresses shall only be effective upon receipt.  Any
notice given hereunder may be given either by a party or by such party’s
attorney.

14.8.       
Governing Law And
Venue.

 
The laws of the State of Ohio shall govern the validity, construction,
enforcement, and interpretation of this Agreement.  To the fullest extent
permitted under applicable law, each party to this Agreement irrevocably waives
and agrees not to assert, by way of motion, as a defense or otherwise, any
objection which it may now or hereafter have to the laying of the venue of any
such suit, action or proceeding brought in a Federal or state court of competent
jurisdiction sitting in the County of Hamilton, State of Ohio and any claim that
any such suit, action or proceeding has been brought in an inconvenient forum,
any claim that it is not personally subject to the jurisdiction of any such
court or that this Agreement or the subject matter hereof may not be enforced in
or by such court.

14.9.       
Entire
Agreement.

 
This Agreement embodies the entire Agreement between the parties hereto
concerning the subject matter hereof and supersedes all prior conversations,
proposals, negotiations, understandings and agreements, whether written or
oral.

14.10.    Amendments.

 
This Agreement shall not be amended, altered, changed, modified, supplemented or
rescinded in any manner except by a written contract executed by all of the parties; provided, however, that the signature of the
Escrow Agent shall not be required as to any amendment of this Agreement.

14.11.    Severability.

 
If any part of this Agreement shall be held to be invalid or unenforceable by a
court of competent jurisdiction, such provision shall be reformed, and enforced
to the maximum extent permitted by law.  If such provision cannot be
reformed, it shall be severed from this Agreement and the remaining portions of
this Agreement shall be valid and enforceable.

14.12.    Multiple Counterparts.

 
This Agreement and any amendment or modification may be executed in any number
of counterparts, each of which and each copy of which shall be deemed an
original, but all of which shall constitute one and the same instrument. 
Any one or more such counterparts or duplicate, facsimile, electronic or digital
signature pages may be removed from any one or more original copies of this
Agreement or any amendment or modification and annexed to other counterparts or
duplicate, facsimile, electronic or digital signature pages to form a completely
executed original instrument.

14.13.    Construction.

 
No provision of this Agreement shall be construed in favor of, or against, any
particular party by reason of any presumption with respect to the drafting of
this Agreement; both parties, being represented by counsel, having fully
participated in the negotiation of this instrument.

14.14.    Confidentiality.

 
Purchaser shall not disclose the terms and conditions contained in this
Agreement and shall keep the same confidential, provided that Purchaser may
disclose the terms and conditions of this Agreement (a) as required by law, (b)
to consummate the terms of this Agreement, or any financing relating thereto, or
(c) to Purchaser’s or Seller’s lenders, attorneys and accountants.  Any
information and Materials provided by Seller to Purchaser hereunder are
confidential and Purchaser shall be prohibited from making such information
public to any other person or entity other than its agents and legal
representatives, without the prior written authorization of Seller, which may be
granted or denied in the sole discretion of Seller.  Notwithstanding the
provisions of Section 14.9, Purchaser agrees that the covenants, restrictions
and agreements of Purchaser contained in any confidentiality agreement executed
by Purchaser prior to the Effective Date shall survive the execution of this
Agreement and shall not be superseded hereby.

14.15.    Time Of The Essence.

 
It is expressly agreed by the parties hereto that time is of the essence with
respect to this Agreement.

14.16.    Waiver.

 
No delay or omission to exercise any right or power accruing upon any default,
omission, or failure of performance hereunder shall impair any right or power or
shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient.  No
waiver, amendment, release, or modification of this Agreement shall be
established by conduct, custom, or course of dealing and all waivers must be in
writing and signed by the waiving party.

14.17.    Attorneys’ Fees.

 
In the event either party hereto commences litigation or arbitration against the
other to enforce its rights hereunder, the prevailing party in such litigation
shall be entitled to recover from the other party its
reasonable attorneys’ fees and expenses incidental to such litigation and
arbitration, including the cost of in-house counsel and any appeals.

14.18.    Time Periods.

 
Should the last day of a time period fall on a weekend or legal holiday, the
next Business Day thereafter shall be considered the end of the time period.

14.19.    1031 Exchange.

 
Seller and Purchaser acknowledge and agree that the purchase and sale of the
Property may be part of a tax-free exchange under Section 1031 of the Code for
either Purchaser or Seller.  Each party hereby agrees to take all
reasonable steps on or before the Closing Date to facilitate such exchange if
requested by the other party, provided that (a) no party making such
accommodation shall be required to acquire any substitute property, (b) such
exchange shall not affect the representations, warranties, liabilities and
obligations of the parties to each other under this Agreement, (c) no party
making such accommodation shall incur any additional cost, expense or liability
in connection with such exchange (other than expenses of reviewing and executing
documents required in connection with such exchange), and (d) no dates in this
Agreement will be extended as a result thereof.  Notwithstanding anything
to the contrary contained in the foregoing, if Seller so elects to close the
transfer of the Property as an exchange, then (i) Seller, at its sole option,
may delegate its obligations to transfer the Property under this Agreement, and
may assign its rights to receive the Purchase Price from Purchaser, to a
deferred exchange intermediary (an “Intermediary”) or to an exchange
accommodation titleholder, as the case may be; (ii) such delegation and
assignment shall in no way reduce, modify or otherwise affect the obligations of
Seller pursuant to this Agreement; (iii) Seller shall remain fully liable for
its obligations under this Agreement as if such delegation and assignment shall
not have taken place; (iv) Intermediary or exchange accommodation titleholder,
as the case may be, shall have no liability to Purchaser; and (v) the closing of
the transfer of the Property to Purchaser shall be undertaken by direct deed
from Seller (or, if applicable, from other affiliates of Seller whom Seller will
cause to execute such deed) to Purchaser or to exchange accommodation
titleholder, as the case may be.  Notwithstanding anything to the contrary
contained in the foregoing, if Purchaser so elects to close the acquisition of
the Property as an exchange, then (i) Purchaser, at its sole option, may
delegate its obligations to acquire the Property under this Agreement, and may
assign its rights to receive the Property from Seller, to an Intermediary or to
an exchange accommodation titleholder, as the case may be; (ii) such delegation
and assignment shall in no way reduce, modify or otherwise affect the
obligations of Purchaser pursuant to this Agreement; (iii) Purchaser shall
remain fully liable for its obligations under this Agreement as if such
delegation and assignment shall not have taken place; (iv) Intermediary or
exchange accommodation titleholder, as the case may be, shall have no liability
to Seller; and (v) the closing of the acquisition of the Property by Purchaser
or the exchange accommodation titleholder, as the case may be, shall be
undertaken by direct deed from Seller (or, if applicable, from other affiliates
of Seller whom Seller will cause to execute such deed) to Purchaser (or to
exchange accommodation titleholder, as the case may be).  

14.20.    No Personal Liability of Officers, Trustees or
Directors.

 
Notwithstanding anything to the contrary contained in this Agreement, no
director, officer, employee, shareholder, member, manager, affiliate, partner or
agent of Seller or Purchaser, nor any of the directors, officers, employees,
shareholders, members, managers, partners, joint venturers or agents of any of
the directors, officers, employees, shareholders, members, affiliates, managers,
partners, joint venturers or agents of Seller or
Purchaser, nor any other person, partnership, limited liability company,
corporation, joint venture or trust, as principal of Seller or Purchaser,
whether disclosed or undisclosed shall have any personal obligation or liability
hereunder, and neither Purchaser or Seller shall seek to assert any claim or
enforce any of their rights hereunder against any the other.

14.21.    Exclusive
Negotiations.

 
Seller acknowledges and agrees that Purchaser shall have the exclusive right to
research, access, and investigate the Property.  So long as this Agreement
is in effect, Seller shall not (i) enter into any discussions or other
communications concerning or related to the sale of the Property with any
third-party, (ii) enter into any letter of intent, contract, binding agreement,
or other written agreement with a third-party for the sale of the Property,
and/or (iii) otherwise actively market the Property for sale to any
third-party.  Seller understands that in order to effectively complete its
due diligence with respect to the purchase of the Property, Purchaser is relying
on the exclusivity granted to it with respect to the Property by this
Section.

14.22.    ADA Disclosure.

 
Purchaser acknowledges that the Property may be subject to the federal Americans
With Disabilities Act (the “ADA”) and the federal Fair Housing Act (the
“FHA”).  The ADA requires, among other matters, that tenants and/or
owners of “public accommodations” remove barriers in order to make a property
accessible to disabled persons and provide auxiliary aids and services for
hearing, vision or speech impaired persons.  Seller makes no warranty,
representation or guarantee of any type or kind with respect to the Property’s
compliance with the ADA or the FHA (or any similar state or local law), and
Seller expressly disclaims any such representation.

14.23.    No Recording.

 
Purchaser shall not cause or allow this Agreement or any contract or other
document related hereto, nor any memorandum or other evidence hereof, to be
recorded or become a public record without the prior written consent of Seller,
which consent may be withheld in the sole discretion of Seller.  If
Purchaser records this Agreement or any other memorandum or evidence thereof,
Purchaser shall be in default of its obligations under this Agreement. 
Purchaser hereby appoints Seller as Purchaser’s attorney-in-fact to prepare and
record any documents necessary to effect the nullification and release of the
contract or other memorandum or evidence thereof from the public records. 
This appointment shall be coupled with an interest and irrevocable.

14.24.    Relationship of Parties.

 
Purchaser and Seller acknowledge and agree that the relationship established
between the parties pursuant to this Agreement is only that of a seller and a
purchaser of property.  Neither Purchaser nor Seller is, nor shall either
hold itself out to be, the agent, employee, joint venturer or partner of the
other party.

14.25.    Waiver of Jury Trial.

 
The parties hereby waive all rights to trial by jury with respect to any
actions, controversy, dispute, or claim of any nature arising out of, in
connection with, or in relation to the interpretation, performance, enforcement
or breach of this Agreement (and any closing document executed in connection
herewith).

14.26.    AIMCO Marks.

 
Purchaser agrees that Seller, the Property Manager or AIMCO, or their respective
affiliates, are the sole owners of all right, title and interest in and to the
AIMCO Marks (or have the right to use such AIMCO Marks
pursuant to license agreements with third parties) and that no right, title or
interest in or to the AIMCO Marks is granted, transferred, assigned or conveyed
as a result of this Agreement.  Purchaser further agrees that Purchaser
will not use the AIMCO Marks for any purpose.

14.27.    Non-Solicitation of Employees. 

(a)               
Purchaser acknowledges and agrees that, without the express
written consent of Seller, neither Purchaser nor any of Purchaser’s employees,
affiliates or agents shall at any time solicit any Seller’s affiliates’
employees located at any property (other than the Property) owned by such
affiliates for potential employment.  

(b)              
For a period of one (1) year following the Closing, Seller, for
itself and on behalf of AIMCO, agrees that neither Seller nor AIMCO shall seek
to re-hire Emily Porta or Odalis Perez should either or both such individuals
accept employment with Purchaser or its affiliate immediately following the
Closing Date.

14.28.    Survival.

 
Except for (a) all of the provisions of this ARTICLE 14, and (b) any provision of
this Agreement which expressly states that it shall so survive, and (c) any
payment obligation of Purchaser under this Agreement, including any obligations
for return of the Deposit (the foregoing (a), (b) and (c) referred to herein as
the “Survival Provisions”), none of the terms and provisions of this
Agreement shall survive the termination of this Agreement, and, if the Agreement
is not so terminated, all of the terms and provisions of this Agreement (other
than the Survival Provisions) shall be merged into the Closing documents and
shall not survive Closing.

ARTICLE
15
LEAD BASED PAINT DISCLOSURE

15.1.       
Disclosure.

 
Seller and Purchaser hereby acknowledge delivery of the Lead Based Paint
Disclosure attached as Exhibit J hereto.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, Seller and Purchaser have executed this
Agreement for Purchase and Sale and Joint Escrow Instructions as of the date
first set forth above.

Seller:

 

	
 

 
	
CCIP/2
VILLAGE BROOKE, L.L.C.,

a
Delaware limited liability company

 

By:      
CONSOLIDATED CAPITAL INSTITUTIONAL
           
PROPERTIES/2, LP SERIES A,

a
Delaware limited partnership,

its
member

 

By:      
CONCAP EQUITIES, INC.,

a
Delaware corporation,

its
general partner

 

           
By:  /s/John Spiegleman

           
Name:  John Spiegleman

           
Title:  Senior Vice President

	
 
	
 

 

[SIGNATURES
CONTINUED ON NEXT PAGE]

 

 

Purchaser:

 

JRK
BIRCHMONT ADVISORS LLC,
a Delaware limited liability company

 

By:  
JRK Birchmont Capital Partners LLC,
a California limited liability
company,
its Managing Member

 

By:  
JRK Property Holdings, Inc.,
a California corporation,
its Manager

 

 

By: 
/s/Robert Lee
Name:  Robert Lee
Title:  Vice
President

 

Purchaser’s
Tax Identification Number:  20-5954350

ESCROW AGENT SIGNATURE PAGE

The
undersigned executes the Contract to which this signature page is attached for
the purpose of agreeing to the provisions of Section 2.3 of the Agreement, and
hereby establishes ________________________, 2010 as the date of opening of
escrow and designates ___________________________________ as the escrow number
assigned to this escrow.

ESCROW
AGENT:

 

STEWART
TITLE GUARANTY COMPANY

 

 

By:      
____________________________________

Name: 
____________________________________

Title:    
____________________________________

BROKER SIGNATURE PAGE

The
undersigned Broker hereby executes this Broker Signature Page solely to confirm
the following:  (a) Broker represents only the Seller in the transaction
described in the Agreement to which this signature page is attached, (b) Broker
acknowledges that the only compensation due to Broker in connection with the
Closing of the transaction described in the Agreement to which this signature
page is attached is as set forth in a separate agreement between Seller and
Broker pursuant to which Broker is entitled to a fee of $25,000.00 upon Closing,
and (c) Broker represents and warrants to Seller that Broker and its affiliates
has not and will not receive any compensation (cash or otherwise) from or on
behalf of Purchaser or any affiliate thereof in connection with the transaction,
and do not, and will not at the Closing, have any direct or indirect legal,
beneficial, economic or voting interest in Purchaser (or in an assignee of
Purchaser, which pursuant to Section 14.3 of the Agreement, acquires the
Property at the Closing) nor has Purchaser granted (as of the Effective Date or
the Closing Date) the Broker or any of its affiliates any right or option to
acquire any direct or indirect legal, beneficial, economic or voting interest in
Purchaser.

BROKER:

 

CUSHMAN
& WAKEFIELD

 

 

 

By:      
____________________________________

Name: 
____________________________________

Title:    
____________________________________

EXHIBIT B

FORM
OF LIMITED WARRANTY DEED

 

KNOW
ALL MEN BY THESE PRESENTS:  That CCIP/2 VILLAGE BROOKE, L.L.C., a Delaware
limited liability company (“Grantor”), for One Dollar ($1.00) and other
good and valuable considerations paid, receipt of which is hereby acknowledged,
does hereby GRANT WITH LIMITED WARRANTY COVENANTS to
___________________________________ (“Grantee”)  the following real
property:

SEE
EXHIBIT A, ATTACHED HERETO AND INCORPORATED HEREIN BY THIS REFERENCE

PRIOR
INSTRUMENT REFERENCE:  Official Record Book ______, Page _____ of the
________ County, Ohio Deed Records.

PROVIDED,
HOWEVER, that excepted from Grantor's Limited Warranty Covenants are any and all
restrictions, reservations, easements, covenants and agreements of record,
zoning restrictions, legal highways, if any, and all real estate taxes and
assessments due and payable after the date hereof.

TAX
MAILING
ADDRESS:                                                                        

IN WITNESS WHEREOF, the undersigned,
_____________________________, the duly authorized _______________ of the
Grantor, has caused this Limited Warranty Deed to be executed as of the 
___ day of _______, 2010.

 

                                                                       
CCIP/2 VILLAGE BROOKE, L.L.C.,

a
Delaware limited liability company

 

By:      
CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/2, LP SERIES A,

a
Delaware limited partnership,

its
member

 

By:      
CONCAP EQUITIES, INC.,

a
Delaware corporation,

its
general partner

 

 

By:                                                      

Name:

Title:

 

 

STATE
OF _____________   ) 

)
SS:

COUNTY
OF ___________  )

 

 

The
foregoing instrument was acknowledged before me a notary public in and for said
county and state this ___ day of _____, 2010 by ______________, as the duly
authorized ______________ on behalf of _____________________, the Grantor in the
foregoing instrument. 

 

                                                                        
___________________________________

                     
                                                  Notary
Public

                                                                       
My Commission Expires:____________

 

 

 

 

 

 

 

This
instrument prepared
by:                      

 

 

EXHIBIT “A”

 

(Legal Description)

 

EXHIBIT C

FORM
OF BILL OF SALE

THIS
BILL OF SALE (“Bill of Sale”) is made this ____ day of _______________,
2010 by CCIP/2 VILLAGE BROOKE, L.L.C., a Delaware limited liability company
(“Seller”), in favor of ______________________, a __________________
(“Purchaser”).

W I T N E S S E T H:

WHEREAS,
Seller and Purchaser entered into that certain Purchase and Sale Agreement dated
as of _______________, 2010 (“Agreement”) with respect to the sale of
certain the Real Property identified on Exhibit A attached thereto and
the Improvements located thereon.  (Any term with its initial letter
capitalized and not otherwise defined herein shall have the meaning set forth in
the Agreement.)

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Seller does hereby absolutely and unconditionally
give, grant, bargain, sell, transfer, set over, assign, convey, release, confirm
and deliver to Purchaser all of the Fixtures and Tangible Personal Property,
without representation or warranty of any kind whatsoever except as set forth in
and subject to the terms of the Agreement.

WITH
RESPECT TO ALL MATTERS TRANSFERRED, WHETHER TANGIBLE OR INTANGIBLE, PERSONAL OR
REAL, SELLER EXPRESSLY DISCLAIMS A WARRANTY OF MERCHANTABILITY AND WARRANTY FOR
FITNESS FOR A PARTICULAR USE OR ANY OTHER WARRANTY EXPRESSED OR IMPLIED THAT MAY
ARISE BY OPERATION OF LAW OR UNDER THE UNIFORM COMMERCIAL CODE FOR THE STATE IN
WHICH THE PROPERTY IS LOCATED (OR ANY OTHER STATE).

This
Bill of Sale shall be binding upon and inure to the benefit of the successors,
assigns, personal representatives, heirs and legatees of Purchaser and
Seller.

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

EXECUTED as of the ______ day of ________________, 2010.

Seller:

 

	
 

 
	
CCIP/2
VILLAGE BROOKE, L.L.C.,

a
Delaware limited liability company

 

By:      
CONSOLIDATED CAPITAL INSTITUTIONAL
           
PROPERTIES/2, LP SERIES A,

a
Delaware limited partnership,

its
member

 

By:      
CONCAP EQUITIES, INC.,

a
Delaware corporation,

its
general partner

 

 

By:      
_____________________________

Name:

Title:

	
 
	
 

 

EXHIBIT D

GENERAL
ASSIGNMENT AND ASSUMPTION

This
General Assignment and Assumption (this “Assignment”) is executed by
CCIP/2 VILLAGE BROOKE, L.L.C., a Delaware limited liability company
(“Seller”), in favor of [PURCHASER], a [Purchaser’s State]
[type entity] (“Purchaser”) as of _________________, 2010 (the
“Effective Date”).

Seller
and Purchaser, have entered into that certain Purchase and Sale Agreement dated
as of _______________ __, 2010 (“Agreement”), in which Seller has agreed
to sell and Purchaser has agreed to purchase the real property described in
Exhibit A attached thereto and the improvements located thereon
(collectively, the “Project”).  Capitalized terms not otherwise
defined herein shall have the meaning ascribed to them in the Agreement.

Pursuant
to the Agreement, Seller has agreed to assign, without recourse or warranty, to
Purchaser all of Seller’s right, title and interest, if any, in and to the
Miscellaneous Property Assets, the Permits (other than the Excluded Permits),
and the Property Agreements.

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Seller and Purchaser agree as follows:

1.        
Assignment.  As of the Effective Date, Seller hereby assigns, sells and
transfers, without recourse or warranty, to Purchaser all of Seller’s right,
title and interest, if any, in and to the Miscellaneous Property Assets, the
Permits (other than the Excluded Permits), and the Property Agreements. 

2.        
Assumption.  As of the Effective Date, Purchaser expressly agrees to assume
and hereby assumes all liabilities and obligations of the Seller in connection
with the Miscellaneous Property Assets, the Permits (other than the Excluded
Permits), and the Property Contracts; provided, however, that to the extent that
any Property Contract constitutes a Terminated Contract, Purchaser assumes such
Property Contract only (a) through the effective date of the termination of such
Property Contract pursuant to its express terms, and (b) to the extent of any
cancellation fees or penalties due as a result of such termination.

3.        
Counterparts.  This Assignment may be executed in counterparts, each of
which shall be deemed an original, and both of which together shall constitute
one and the same instrument.

4.        
Attorneys’ Fees.  If any action or proceeding is commenced by either party
to enforce its rights under this Assignment, the prevailing party in such action
or proceeding shall be awarded all reasonable costs and expenses incurred in
such action or proceeding, including reasonable attorneys’ fees and costs
(including the cost of in-house counsel and appeals), in addition to any other
relief awarded by the court.

5.        
Applicable Law.  This Assignment shall be governed by and interpreted in
accordance with the laws of the State of Ohio.

6.         Binding
Effect.  This Assignment shall be binding upon and inure to the benefit of
the parties hereto and their respective transferees, successors, and
assigns.

WITH
RESPECT TO ALL MATTERS TRANSFERRED, WHETHER TANGIBLE OR INTANGIBLE, PERSONAL OR
REAL, SELLER EXPRESSLY DISCLAIMS A WARRANTY OF MERCHANTABILITY AND WARRANTY FOR
FITNESS FOR A PARTICULAR USE OR ANY OTHER WARRANTY EXPRESSED OR IMPLIED THAT MAY
ARISE BY OPERATION OF LAW OR UNDER THE UNIFORM COMMERCIAL CODE FOR THE STATE IN
WHICH THE PROPERTY IS LOCATED (OR ANY OTHER STATE).

[Remainder
of Page Intentionally Left Blank]

WITNESS
the signatures of the undersigned.

Dated: 
_____________________, 2010

Seller:

 

	
 

 
	
CCIP/2
VILLAGE BROOKE, L.L.C.,

a
Delaware limited liability company

 

By:      
CONSOLIDATED CAPITAL INSTITUTIONAL
           
PROPERTIES/2, LP SERIES A,

a
Delaware limited partnership,

its
member

 

By:      
CONCAP EQUITIES, INC.,

a
Delaware corporation,

its
general partner

 

By:      
_____________________________

Name:

Title:

 

Purchaser:

 

[PURCHASER]
a
[Purchaser’s State] [type entity]

 

By:                                                                              

Name:                                                                         

Title:                                                                            

 

EXHIBIT E

ASSIGNMENT
AND ASSUMPTION OF LEASES AND SECURITY DEPOSITS

This
Assignment and Assumption of Leases and Security Deposits (this
“Assignment”) is executed by and between CCIP/2 VILLAGE BROOKE, L.L.C., a
Delaware limited liability company (“Assignor”), and
___________________., a _________________ (“Assignee”), as of
_________________, 2010 (the “Effective Date”).

Assignee
and Assignor have entered into that certain Purchase and Sale Agreement, dated
_____________________, 2010 (“Purchase Agreement”), in which Assignor has
agreed to sell and Assignee has agreed to purchase the real property described
on Exhibit A attached hereto and the improvements located thereon
(collectively, the “Project”).

Assignor,
as landlord, has entered into certain leases for the use of the Project by
tenants (collectively, together with all amendments, modifications, supplements,
restatements and guarantees thereof, the “Leases”) for the Project.

The
Purchase Agreement requires Assignor and Assignee to execute this
Assignment.

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Assignor and Assignee hereby agree as
follows:

1.        
Capitalized Terms.  Unless the context otherwise requires, all capitalized
terms used, but not otherwise defined herein, shall have the meanings set forth
for the same in the Purchase Agreement.

2.        
Assignment and Assumption.  As of the Effective Date, Assignor hereby
irrevocably assigns, sets over, transfers and conveys to Assignee all of
Assignor’s right, title and interest in and to (a) the Leases, and (b) the
Tenant Security Deposit Balance.  Assignee hereby accepts this Assignment
and the rights granted herein, and Assignee hereby expressly assumes, for itself
and its successors, assigns and legal representatives, the Leases, the Tenant
Security Deposit Balance, and all of the obligations and liabilities, fixed and
contingent, of Assignor thereunder accruing from and after the date hereof with
respect to the Leases and the Tenant Security Deposit Balance and agrees to (i)
be fully bound by all of the terms, covenants, agreements, provisions,
conditions, obligations and liability of Assignor thereunder, which accrue from
and after the date hereof, and (ii) keep, perform and observe all of the
covenants and conditions contained therein on the part of Assignor to be kept,
performed and observed, from and after the date hereof.

3.        
General Provisions.

a.        
Successors.  This Assignment shall inure to the benefit of, and be binding
upon, the parties hereto and their respective successors and assigns.

b.        
Counterparts.  This Assignment may be executed in as many counterparts as
may be deemed necessary and convenient, and by the different parties hereto on
separate counterparts, each of which, when so executed,
shall be deemed an original, but all such counterparts shall constitute one and
the same instrument.

c.        
Governing Law.  This Assignment and the legal relations between the parties
hereto shall be governed by and construed and enforced in accordance with the
laws of the State wherein the Project is located, without reference to the
conflict of law provisions thereof.

d.        
Attorney’s Fees.  If any action or proceeding is commenced by either party
to enforce its rights under this Assignment, the prevailing party in such action
or proceeding shall be awarded all reasonable costs and expenses incurred in
such action or proceeding, including reasonable attorneys’ fees and costs
(including the cost of in-house counsel and appeals), in addition to any other
relief awarded by the court.

[SIGNATURES
ON FOLLOWING PAGE]

WITNESS the signatures of the undersigned.

Dated: 
_________________, 2010

Seller:

 

	
 

 
	
CCIP/2
VILLAGE BROOKE, L.L.C.,

a
Delaware limited liability company

 

By:      
CONSOLIDATED CAPITAL INSTITUTIONAL
           
PROPERTIES/2, LP SERIES A,

a
Delaware limited partnership,

its
member

 

By:      
CONCAP EQUITIES, INC.,

a
Delaware corporation,

its
general partner

 

By:      
_____________________________

Name:

Title:

 

 

Purchaser:

 

[PURCHASER]
a
[Purchaser’s State] [type entity]

 

By:                                                                              

Name:                                                                         

Title:                                                                            

 

EXHIBIT A

LEGAL DESCRIPTION FOR THE GLENBRIDGE MANORS
APARTMENTS
Hamilton County, Ohio

 

EXHIBIT F

NOTICE
TO VENDOR REGARDING TERMINATION OF CONTRACT

GLENBRIDGE
MANORS APARTMENTS

[DATE]

To:      
[INSERT VENDOR INFORMATION]

Re:      
Termination of [Insert Name and Date of Contract] (the “Contract”)

Dear
[Insert Name]:

Effective
as of [__________], 2010 (the “Closing Date”), CCIP/2 VILLAGE BROOKE,
L.L.C., a Delaware limited liability company (“Seller”), has sold the
property located at 11513 Village Brooke Drive, Cincinnati, Ohio 45249 to
[INSERT NAME OF PURCHASER] (“Purchaser”).  In connection with
such purchase and sale, Purchaser has elected to terminate the Contract. 
Accordingly, this letter shall serve as notice that the Contract is terminated
as of [_______], 20[__] [INSERT DATE OF CLOSING, OR LATER DATE IF REQUIRED BY
TERMINATED CONTRACT] (the “Termination Date”).

To
the extent that the Contract requires payment of any penalty or premium as a
result of the termination of the Contract, Purchaser shall be solely responsible
for the payment of any such cancellation fees or penalties.  Also, to the
extent that the Termination Date is after the Closing Date, Purchaser shall be
deemed to have assumed all of Seller’s obligations under the Contract as of the
Closing Date.

Any
and all future notices and inquiries that you may have regarding the termination
of the Contract should be forwarded to Purchaser at the following address:

[INSERT
NAME OF PURCHASER]

 

[INSERT
ADDRESS]

 

Attention: 
Property Manager

 

Very truly yours,

 

	
 

 
	
CCIP/2
VILLAGE BROOKE, L.L.C.,

a
Delaware limited liability company

 

By:      
CONSOLIDATED CAPITAL INSTITUTIONAL
           
PROPERTIES/2, LP SERIES A,

a
Delaware limited partnership,

its
member

 

By:      
CONCAP EQUITIES, INC.,

a
Delaware corporation,

its
general partner

 

           
By:       _____________________________

           
Name:

           
Title: 

 

 

Purchaser:

 

[PURCHASER]
a
[Purchaser’s State] [type entity]

 

By:                                                                              

Name:                                                                         

Title:                                                                            

 

EXHIBIT G

TENANT
NOTIFICATION

__________________
(Date)

 

To
Tenants of Glenbridge Manors Apartments

Ladies
and Gentlemen:

This
is to advise you that, effective this date, Glenbridge Manors Apartments has
been sold to ___________________________ (“Purchaser”).  Purchaser’s
address for the purposes of serving of process and receiving and receipting for
demands and notice is ___________________.

Effective
immediately, please make all rent checks payable to _________________ and make
all rental payments to _______________.  In connection with the transfer
and assignment of your lease, Purchaser has assumed the obligations of the
transferor as landlord under your lease and has also transferred any unapplied
and refundable portion of your security deposit(s).  

The
new manager for the property is _______________, whose address is
_____________________.  Please contact _________________ at _____________
if you have any questions regarding this transfer.

Very
truly yours,

 

[PURCHASER]

 

EXHIBIT H

LIST
OF STANDARD EXCLUDED FIXTURES AND TANGIBLE PERSONAL PROPERTY

 

1.        
“Buyer’s Access Computer Hardware and Software”;

2.        
AIMCO Benchmark Series Books;

3.        
Connect:  Remote Horizon Software;

4.        
All other software installed on any computers transferred as part of the sale;
and

5.        
Any items listed on the Seller Information Schedule.

 

EXHIBIT I

LIST
OF MATERIALS

IN
ALL INSTANCES, THE FOLLOWING MATERIALS WILL BE DELIVERED ONLY TO THE EXTENT THE
SAME EXIST AND ARE IN SELLER’S POSSESSION OR REASONABLE CONTROL. 

(a)   
Seller’s form of residential lease agreement used at the Property;

(b)   
All Property Contracts and any equipment leases for the Property;

(c)   
Any property locator or similar agreements (other than agreements with the
Property Manager), if any, pertaining to the marketing and advertisement of the
Property for leasing (and payment of commissions in connection therewith), but
only to the extent the same will remain in effect after the Closing;

(d)   
All engineering studies, environmental reports, termite inspections or
warranties, to the extent available and in Seller’s possession (subject to
Section 3.5.2), which relate to the Property and were prepared for Seller by
third parties;

(e)   
To the extent in Seller’s possession (subject to Section 3.5.2), ad valorem and
personal property tax statements for the current year, and the status of any
pending appeal for its Property;

(f)    
Current operating statements for the Property, and to the extent available and
in Seller’s possession (subject to Section 3.5.2), for the three years prior to
the year in which the Effective Date occurs (the “Operating
Statements”);

(g)   
A summary of pending insurance claims and pending litigation, if any, provided
that such summary shall be prepared to Seller’s knowledge (as defined in Section
7.4 of the Agreement) and Seller makes no representations or warranties
regarding the outcome of such claims or litigation;

(h)   
To the extent available and in Seller’s possession (subject to Section 3.5.2),
guaranties or warranties with respect to the roof of the Property, if any;

(i)    
ACM plan, lead in water O&M, and other O&M plans, if any, for the
Property;

(j)    
Copies of any certificates of occupancy and/or other Permits, to the extent
available and in Seller’s possession (subject to Section 3.5.2) of the
Property;

(k)   
Copies of any Phase I, Phase II, or any other environmental or similar study or
report with respect to the Property; and

(l)    
Copy of the current Rent Roll, and copies of semi annual rent rolls for the
Property for 2009.

EXHIBIT J

LEAD-BASED
PAINT DISCLOSURE

EVERY
PURCHASER OF ANY INTEREST IN RESIDENTIAL REAL PROPERTY ON WHICH A RESIDENTIAL
DWELLING WAS BUILT PRIOR TO 1978 IS NOTIFIED THAT SUCH PROPERTY MAY PRESENT
EXPOSURE TO LEAD FROM LEAD-BASED PAINT THAT MAY PLACE YOUNG CHILDREN AT RISK OF
DEVELOPING LEAD POISONING.  LEAD POISONING IN YOUNG CHILDREN MAY PRODUCE
PERMANENT NEUROLOGICAL DAMAGE, INCLUDING LEARNING DISABILITIES, REDUCED
INTELLIGENCE QUOTIENT, BEHAVIORAL PROBLEMS, AND IMPAIRED MEMORY.  LEAD
POISONING ALSO POSES A PARTICULAR RISK TO PREGNANT WOMEN.  THE SELLER OF
ANY INTEREST IN RESIDENTIAL REAL PROPERTY IS REQUIRED TO PROVIDE THE PURCHASER
WITH ANY INFORMATION ON LEAD-BASED PAINT HAZARDS FROM RISK ASSESSMENTS OR
INSPECTIONS IN THE SELLER’S POSSESSION, IF ANY, AND NOTIFY THE PURCHASER OF ANY
KNOWN LEAD-BASED PAINT HAZARDS.  A RISK ASSESSMENT OR INSPECTION FOR
POSSIBLE LEAD-BASED PAINT HAZARDS IS RECOMMENDED PRIOR TO
PURCHASE

SCHEDULE 1

SELLER
INFORMATION SCHEDULE

 

	
 

 

Excluded Permits
	
 

 

Excluded FF&E
	
 

Litigation

	
Pool permit (non-transferable)
	
None
	
1.  Claim by tenant that Seller’s agents stole
3 to 4 of his cigars valued at approximately $150.00 (threatened
litigation, under investigation by Seller)

 

2.  CCIP/2 Village Brooke, L.L.C. v. Deerfield
Construction Company Inc., Case No. A 0807552, Hamilton County.

 

 

[1] If “RealPage” software is used at any of the
Properties for rent roll purposes, in order for Purchaser to continue to use
such software, Purchaser must (1) notify RealPage by emailing them at:
contracts@realpage.com, (2) purchase a license from RealPage and (3) cause
RealPage to advise the applicable Seller at least 10 days prior to Closing, by
sending an email to the Regional Property Manager and the Community Manager for
the Property, that Purchaser has purchased a license.  Otherwise, the
RealPage software will be removed upon Closing with all other excluded
software.exhibit101.htm

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

CONVERTIBLE PROMISSORY NOTE

------------------------------

$360,000                                                                                                                     March 12, 2010

FOR VALUE RECEIVED, the undersigned, AURA SYSTEMS, INC. ("Maker"), a Delaware Corporation whose address is 2330 Utah Avenue, El Segundo California 90245 promises to pay on or before One Hundred Twenty (120) calendar days following the Effective Date of this Secured Convertible Promissory Note (the "Maturity Date"), to the order of Melvin Gagerman, ­­­­­­­­­­an individual whose address is 4930 Andasol Avenue, Encino, CA 91316 (the "Holder"), the principal amount of Three Hundred Sixty Thousand and No/100 ($360,000) (the "Principal Amount"), together with interest on the principal balance outstanding from time to time, as herein provided, and all other sums due under this Convertible Promissory Note, as herein provided.

The unpaid principal amount of this Promissory Note (the “Note’) shall bear simple interest from the date that funds equaling the Principal Amount are delivered to Maker (the “Effective Date”) at a rate of TEN PERCENT PER ANNUM (10%) (the “Interest Rate”). Interest shall be computed on the basis of actual number of days/360-day year.

All payments of principal, interest or any other sums due pursuant under this Note shall be made in lawful currency of the United States of America and delivered directly to the applicable party at that party’s address as set forth below. Any payment made under this Note shall be credited in the following order: (1) first, to any interest at the Interest Rate then accrued but unpaid, (2) second to any remaining amount to principal, and (3) third to any unpaid collection costs.

The entire unpaid principal of this Note, together with all accrued and unpaid interest, shall become and be immediately due and payable upon the Maturity Date, without any other notice or demand of any kind or any presentment or protest.

No prepayment penalty. There shall be no prepayment penalties and Maker may repay the

Convertible Promissory Note

  

  

  

outstanding principal balance of this Note, in whole or in part, at any time prior to the Maturity Date without penalty. In the event of such prepayment, the amount prepaid by Maker shall be applied to the latest payment or payments falling due under this Note.

Conversion. At any time while this Note is outstanding, this Note shall be convertible, in whole or in part, into shares of Common Stock at the option of the Holder, at any time and from time to time.  The Holder shall effect conversions by delivering to the Maker a Notice of Conversion, the form of which is attached hereto (a “Notice of Conversion”), specifying therein the principal amount of this Note to be converted and the date on which such conversion shall be effected (such date, the “Conversion Date”).  If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is deemed delivered hereunder.  To effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Maker unless the entire principal amount of this Note, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion.  The Holder and the Maker shall maintain records showing the principal amount(s) converted and the date of such conversion(s). The Holder, and any assignee by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof.

 

 

Conversion Price.  The conversion price for any and all conversions made by Holder pursuant to the foregoing paragraph shall be equal to $0.75 per share.

Default. Failure by Maker to make any payment in accordance with the terms of this Note shall constitute an event of default (an "Event of Default"). In the Event of Default, the entire unpaid principal of this Note, together with all accrued and unpaid interest, shall become and be immediately due and payable.

Loss, Theft, Destruction or Mutilation.  Upon receipt of evidence satisfactory to the Maker of the loss, theft, destruction or mutilation of this Note and, in the case of such loss, theft or destruction, upon delivery to the Maker of an indemnity undertaking reasonably satisfactory to the Maker, or, in the case of any such mutilation, upon surrender of this Note to the Maker, the Maker will issue a new note, of like tenor and principal amount, in lieu of or in exchange for such lost, stolen, destroyed or mutilated Note.  Upon the issuance of any substitute Note, the Maker may require the payment to it of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses in connection therewith.

Convertible Promissory Note

  

  

  

Notices and Demands.  All notices, demands and other communications provided for in this Note or made under this Note shall be in writing and shall be deemed to have been duly given if delivered by hand (whether by overnight courier or otherwise) or sent by registered or certified mail, return receipt requested, postage prepaid, to the person to whom it is directed:

          (a)  If to Holder, to it at the following address:

4930 Andasol Avenue

Encino, CA 91316

          (b)  If to the Maker, to it at the following address:

Aura Systems, Inc.

2330 Utah Avenue

El Segundo, CA 90245

No Oral Modifications.  Neither this Note nor any term of this Note may be changed, waived, discharged or terminated orally, but may only be amended or modified by an instrument in writing signed by the Holder and the Maker.

Binding Effect.  This Note shall be binding upon and inure to the benefit of the Maker, the Holder of this Note, and their respective heirs, successors and assigns.

 

 

Governing Law, Jurisdiction; Jury Trial Waiver.  This Note shall be governed by, and construed and interpreted in accordance with, the law of the State of California. The Maker hereby irrevocably submits to the exclusive jurisdiction of the Los Angeles Superior Court, Central District, for the purposes of any suit, action or other proceeding arising out of this Note.  The Maker hereby further agrees that service of any process, summons, notice or document by U.S. registered mail to its address set forth above shall be effective service of process for any action, suit or proceeding in California with respect to any matters to which it has submitted to jurisdiction as set forth above in the immediately preceding sentence.  Each of the parties hereto irrevocably and unconditionally waives, to the extent permitted by applicable law, any objection to the laying of venue of any action, suit or proceeding arising out of this Note in the Los Angeles Superior Court, Central District, and hereby further irrevocably and unconditionally waives, to the extent permitted by applicable law, and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

Assignability.  The Holder may sell, assign, transfer or otherwise hypothecate ("Transfer") this Note to any other Person.  If any interest in this Note is Transferred in compliance with this Section, this Note shall be cancelled and each of the Maker and Holder shall execute and deliver a new note (in substantially the form of this Note) to each Person to whom an interest in this Note has been Transferred in an aggregate principal amount equal to such Person's interest in this Note.

Convertible Promissory Note

  

  

  

Severability/Additional Documents. In the event that any provision, sentence, paragraph or part of this Note is deemed ambiguous or unenforceable by a court of law, the terms of the remaining parts of this Note shall be construed by the court so as to ensure that the Note survives and remains enforceable.

Costs.  The Maker will pay all reasonable costs and expenses of collection, including attorneys' fees and disbursements, appraiser's fees and court costs, incurred or paid by the Holder in enforcing this Note, to the extent permitted by law, including all costs and reasonable attorneys' fees incurred in any appeal, bankruptcy proceeding, or other proceeding.

IN WITNESS WHEREOF, the Maker has caused this Note to be executed this 12th day of March 2010.

AURA SYSTEMS, INC. (“MAKER”)

 

 

By:

________________________________

Arthur Schwartz

Member of the Board of Directors

Agreed and Accepted:

Melvin Gagerman (HOLDER”)

 

 

By: ___________________________

       Name: Melvin Gagerman

       Title: Chief Executive Officer

Convertible Promissory Note

  

  

  

EXHIBIT A

NOTICE OF CONVERSION

The undersigned hereby elects to convert principal under the Convertible Promissory Note of AURA SYSTEMS, INC., a Delaware corporation (the “Maker”), into shares of common stock (the “Common Stock”), of the Maker according to the conditions hereof, as of the date written below.  If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Maker in accordance therewith.  No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.

By the delivery of this Notice of Conversion the undersigned represents and warrants to the Maker that its ownership of the Common Stock does not equal or exceed the amounts specified in Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder regarding beneficial ownership.

The undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the aforesaid shares of Common Stock pursuant to any prospectus.

Conversion calculations:

Date to Effect Conversion:

Principal Amount of Note to be Converted:

Interest Accrued on Account

of Conversion at Issue:                                                                                     

Number of shares of Common Stock to be issued:

Signature:                                                                                     

Name:

Address for Delivery of Common Stock Certificates:                                                                                     

Or

DWAC Instructions:

Broker No:                                           

Account No:                                           

Convertible Promissory Note

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