Document:

Exhibit 4.3  

AFFORDABLE RESIDENTIAL COMMUNITIES INC.

Articles Supplementary

Series A Cumulative Redeemable

Preferred Stock  

        Affordable Residential Communities Inc., a Maryland corporation (the "Corporation"), hereby certifies to the State Department of Assessments and Taxation
of Maryland that: 

        FIRST:    Under a power contained in Article VI of the Charter of the Corporation (the "Charter"), the Board of Directors
by duly adopted resolutions classified and designated 5,750,000 shares of authorized but unissued Preferred Stock (as defined in the Charter) as shares of 8.25% Series A Cumulative Redeemable
Preferred Stock, with the following preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms and conditions
of redemption, which, upon any restatement of the Charter, shall become part of Article VI of the Charter, with any necessary or appropriate renumbering or relettering of the sections or
subsections hereof. 

Series A Cumulative Redeemable Preferred Stock  

        (1)   Designation and Number. A series of Preferred Stock, designated the "8.25% Series A Cumulative Redeemable
Preferred Stock" (the "Series A Preferred Stock"), is hereby established. The number of shares of the Series A Preferred Stock shall be 5,750,000. 

        (2)   Rank. The Series A Preferred Stock shall, with respect to rights to the payment of dividends and the distribution
of assets upon the liquidation, dissolution or winding up of the Corporation, rank (a) senior to all classes or series of Common Stock (as defined in the Charter) and any other class or series
of stock of the Corporation if the holders of the Series A Preferred Stock are entitled to receive dividends or amounts distributable upon the liquidation, dissolution or winding up of the
Corporation in preference or priority to the holders of shares of such class or series (the "Junior Stock"); (b) on a parity with any class or series of stock of the Corporation if the holders
of such class or series of stock and the Series A Preferred Stock are entitled to receive dividends and amounts distributable upon the liquidation, dissolution or winding up of the Corporation
in proportion to their respective amounts of accumulated, accrued and unpaid dividends per share or liquidation preferences, without preference or priority of one over the other (the "Parity Stock");
and (c) junior to any class or series of stock of the Corporation if the holders of such class or series are entitled to receive dividends and amounts distributable upon the liquidation,
dissolution or winding up of the Corporation in preference or priority to the holders of the Series A Preferred Stock (the "Senior Stock"). 

        (3)   Dividends. 

        (a)   Subject
to the preferential rights of holders of any class or series of Senior Stock, holders of the Series A Preferred Stock shall be entitled to receive, when
and as authorized by the Board of Directors and declared by the Corporation, out of funds legally available for the payment of dividends, cash dividends at the rate of 8.25% per annum of the $25.00
liquidation preference (equivalent to a fixed annual rate of $2.0625 per share). Such dividends shall be cumulative from the first date on which any Series A Preferred Stock is issued (the
"Original Issue Date") and shall be payable quarterly in arrears on or before the 30th day of each April, July, October and January of each year or, if not a business day, the next
succeeding business day (each, a "Dividend Payment Date"). Any dividend payable on the Series A Preferred Stock for any partial dividend period shall be computed ratably on the basis of a
360-day year consisting of twelve 30-day months. Dividends shall be payable in arrears to holders of record as they appear in the stock records of the Corporation at the close
of business on the applicable record date (the "Dividend Record Date") not less than 15 nor more than 45 days preceding the applicable Dividend Payment Date. The term "business day" shall mean
any day, other than Saturday, Sunday, or a day on 

 

which
banking institutions in the State of New York are authorized or obligated by law to close, or a day which is or is declared a national or a New York state holiday. 

        (b)   Holders
of the Series A Preferred Stock shall not be entitled to any dividends in excess of cumulative dividends, as herein provided, on the Series A
Preferred Stock. 

        (c)   No
interest, or sum of money in lieu of interest, shall be payable in respect of any dividend payment or payments on the Series A Preferred Stock that may be in
arrears. 

        (d)   Holders
of shares of the Series A Preferred Stock issued after February 18, 2004 shall become entitled to receive dividends payable with respect to any
record date subsequent to the date of issuance of such shares. 

        (e)   When
dividends are not paid in full upon the Series A Preferred Stock or any other class or series of Parity Stock, or a sum sufficient for such payment is not
set apart, all dividends declared upon the Series A Preferred Stock and any shares of Parity Stock shall be declared ratably in proportion to the respective amounts of dividends accumulated,
accrued and unpaid on the Series A Preferred Stock and accumulated, accrued and unpaid on such Parity Stock (which shall not include any accumulation in respect of unpaid dividends for prior
dividend periods if such Parity Stock does not have a cumulative dividend). Except as set forth in the preceding sentence, unless full cumulative dividends on the Series A Preferred Stock have
been or contemporaneously are authorized, declared and paid or declared and a sum sufficient for the payment thereof is set apart for such payment for all past dividend periods and the then current
dividend period, no dividends may be authorized, declared or paid or set apart for payment by the Corporation and no other distribution of cash or other property may be declared or made, directly or
indirectly, by the Corporation with respect to any shares of Parity Stock. 

        (f)    Unless
full cumulative dividends equal to the full amount of all accumulated, accrued and unpaid dividends on the Series A Preferred Stock have been declared and
paid, or declared and a sum sufficient for the payment thereof has been set apart for such payment, for all past dividend periods and the then current dividend period, no dividends (other than
dividends or distributions paid in shares of Junior Stock or options, warrants or rights to subscribe for or purchase shares of Junior Stock) shall be authorized, declared or paid or set apart for
payment by the Corporation and no other distribution of cash or other property may be authorized, declared or made, directly or indirectly, by the Corporation with respect to any shares of Junior
Stock, nor shall any shares of Junior Stock be redeemed, purchased or otherwise acquired (other than a redemption, purchase or other acquisition of Common Stock made for purposes of an employee
incentive or benefit plan of the Corporation) for any consideration (or any monies be paid to or made available for a sinking fund for the redemption of any shares of any such stock), directly or
indirectly, by the Corporation (except by conversion into or exchange for shares of Junior Stock, or options, warrants or rights to subscribe for or purchase shares of Junior Stock), nor shall any
other cash or other property be paid or distributed to or for the benefit of holders of shares of Junior Stock. 

        (g)   Notwithstanding
the foregoing provisions of this Section 3, the Corporation shall not be prohibited from (i) declaring or paying or setting apart for
payment any dividend or distribution on any shares of Parity Stock or (ii) redeeming, purchasing or otherwise acquiring any Parity Stock, in each case, if such declaration, payment, redemption,
purchase or other acquisition is necessary in order to maintain the continued qualification of the Corporation as a qualified real estate investment trust ("REIT") under Section 856 of the Code
(as defined in the Charter). 

        (4)   Liquidation Preference. 

        (a)   Upon
any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, before any payment or distribution by the Corporation shall be made to or
set apart for the holders of any shares of Junior Stock, the holders of shares of the Series A Preferred Stock 

2

 

shall
be entitled to be paid out of the assets of the Corporation that are legally available for distribution to the stockholders, a liquidation preference of $25.00 per share (the "Liquidation
Preference"), plus an amount equal to all accumulated, accrued and unpaid dividends (whether or not earned or declared) to and including the date of payment. Until the holders of the Series A
Preferred Stock have been paid the Liquidation Preference in full, plus an amount equal to all accumulated, accrued and unpaid dividends (whether or not earned or declared) to the date of final
distribution to such holders, no payment will be made to any holder of Junior Stock upon the liquidation, dissolution or winding up of the Corporation. If upon the voluntary or involuntary
liquidation, dissolution or winding up of the Corporation, the available assets of the Corporation, or proceeds thereof, distributable among the holders of the Series A Preferred Stock shall be
insufficient to pay in full the above described preferential amount and liquidating payments on any other shares of any class or series of Parity Stock, then such assets, or the proceeds thereof,
shall be distributed among the holders of the Series A Preferred Stock and any such other Parity Stock ratably in the same proportion as the respective amounts that would be payable on such
Series A Preferred Stock and any such other Parity Stock if all amounts payable thereon were paid in full. After payment of the full amount of the liquidation distributions to which they are
entitled, the holders of the Series A Preferred Stock shall have no right or claim to any of the remaining assets of the Corporation. 

        (b)   Written
notice of any such liquidation, dissolution or winding up of the Corporation, stating the payment date or dates when, and the place or places where the amounts
distributable in such circumstances shall be payable, shall be given by first class mail, postage pre-paid, not less than 30 nor more than 60 days prior to the payment date stated
therein, to each record holder of the shares of the Series A Preferred Stock at the respective addresses of such holders as the same shall appear on the stock transfer records of the
Corporation. 

        (c)   Upon
any liquidation, dissolution or winding up of the Corporation, after payment shall have been made in full to the holders of the Series A Preferred Stock and
any Parity Stock, any other series or class or classes of Junior Stock shall be entitled to receive any and all assets of the Corporation remaining to be paid or distributed, and the holders of the
Series A Preferred Stock and any Parity Stock shall not be entitled to share therein. 

        (d)   The
consolidation or merger of the Corporation with or into any other corporation, trust or entity or of any other corporation with or into the Corporation, or the sale
or transfer of all or substantially all of the assets or business of the Corporation or a statutory share exchange, shall not be deemed to constitute a voluntary or involuntary liquidation,
dissolution or winding up of the Corporation. 

        (e)   In
determining whether a distribution (other than upon voluntary or involuntary liquidation), by dividend, redemption or other acquisition of shares of stock of the
Corporation or otherwise, is permitted under the Maryland General Corporation Law, amounts that would be needed, if the Corporation were to be dissolved at the time of distribution, to satisfy the
preferential rights upon dissolution of holders of shares of the Series A Preferred Stock shall not be added to the Corporation's total liabilities. 

        (5)   Redemption. 

        (a)   The
Series A Preferred Stock is not redeemable prior to February 18, 2009. However, in order to ensure that the Corporation remains a qualified REIT for
Federal income tax purposes, the Series A Preferred Stock shall be subject to the provisions of Article VII of the Charter. Pursuant to Article VII of the Charter, and without
limitation of any provisions of such Article VII, the Series A Preferred Stock, together with all other Stock (as defined in the Charter), owned by a stockholder in excess of the
Aggregate Stock Ownership Limit (as defined in the Charter) will automatically be transferred to a Trust (as defined in the Charter) for the benefit of 

3

 

a
Charitable Beneficiary (as defined in the Charter) and the Corporation shall have the right to purchase such transferred shares from the Trust. On and after February 18, 2009, the Corporation
may, at its option, redeem shares of the Series A Preferred Stock, in whole or from time to time, in part, for cash at a redemption price of $25.00 per share, plus all accumulated, accrued and
unpaid dividends, if any, to and including the date fixed for redemption (the "Redemption Date"). 

        (b)   In
the event of a redemption of shares of the Series A Preferred Stock, if the Redemption Date occurs after a Dividend Record Date and on or prior to the related
Dividend Payment Date, the dividend payable on such Dividend Payment Date in respect of such shares called for redemption shall be payable on such Dividend Payment Date to the holders of record at the
close of business on such Dividend Record Date, and shall not be payable as part of the redemption price for such shares. 

        (c)   The
Redemption Date shall be selected by the Corporation and shall be not less than 30 days nor more than 60 days after the date on which the Corporation
sends the notice of redemption. 

        (d)   If
full cumulative dividends on all outstanding shares of the Series A Preferred Stock have not been paid or declared and set apart for payment, no shares of the
Series A Preferred Stock may be redeemed unless all outstanding shares of the Series A Preferred Stock are simultaneously redeemed, and neither the Corporation nor any of its affiliates
may purchase or acquire shares of the Series A Preferred Stock otherwise than pursuant to a purchase or exchange offer made on the same terms to all holders of the Series A Preferred
Stock. 

        (e)   If
fewer than all of the outstanding shares of the Series A Preferred Stock is to be redeemed, the Corporation shall select those shares to be redeemed pro rata
or by lot or in such manner as the Board of Directors may determine. 

        (f)    The
Corporation shall give notice of redemption by publication in a newspaper of general circulation in the City of New York, such publication to be made once a week for
two successive weeks commencing not less than 30 nor more than 60 days prior to the Redemption Date. The Corporation shall mail notice of redemption of the Series A Preferred Stock to
each holder of record of the shares to be redeemed by first class mail, postage prepaid, not less than 30 nor more than 60 days prior to the Redemption Date, at such holder's address as the
same appears on the stock records of the Corporation. Any notice which was mailed as described above shall be conclusively presumed to have been duly given on the date mailed whether or not the holder
receives the notice. Each notice shall state: (1) the Redemption Date; (2) the number of shares of the Series A Preferred Stock to be redeemed in total and from such holder;
(3) the place or places where certificates for the shares of the Series A Preferred Stock are to be surrendered for payment of the redemption price; (4) the redemption price
payable on the Redemption Date, including, without limitation, a statement as to whether or not accumulated, accrued and unpaid dividends shall be payable as part of the redemption price, or payable
on the next Dividend Payment Date to the record holder at the close of business on the relevant record date as described above; and (5) that dividends on the shares of the Series A
Preferred Stock to be redeemed shall cease to accrue on such Redemption Date. 

        (g)   From
and after the Redemption Date (unless the Corporation defaults in the payment of its redemption obligation), dividends on the shares of the Series A
Preferred Stock to be redeemed shall cease to accumulate or accrue, the shares shall no longer be deemed to be outstanding and all rights of the holders thereof shall cease, except the right to
receive the cash payable upon such redemption without interest thereon. If the Redemption Date occurs after a Dividend Record Date and on or prior to the related Dividend Payment Date, each holder of
the Series A Preferred Stock at the close of business on the record date shall have the right to receive the dividend payable on the Dividend Payment Date. Upon surrender in accordance with
such notice of the 

4

 

certificates
representing the Series A Preferred Stock (properly endorsed or assigned for transfer, if the Board of Directors shall so require and the notice shall so state), the redemption
price set forth above shall be paid out of the funds provided by the Corporation. If fewer than all the shares represented by any such certificate are redeemed, a new certificate shall be issued
representing the unredeemed shares without cost to the holder thereof. 

        (h)   Subject
to applicable law and the limitation on purchases when dividends on the Series A Preferred Stock are in arrears, the Corporation may, at any time and from
time to time, purchase any shares of the Series A Preferred Stock in the open market, by tender or by private agreement. 

        (i)    The
shares of the Series A Preferred Stock are subject to the provisions of Article VII of the Charter, including, without limitation, the provision for
the redemption of shares transferred to the Trust (as defined in the Charter). For this purpose, the Market Price of Series A Preferred Stock shall equal
$25.00 per share, plus an amount equal to all accumulated, accrued and unpaid dividends (whether or not earned or declared) to and including the date of redemption. 

        (j)    Any
shares of Series A Preferred Stock that shall at any time have been redeemed or otherwise acquired by the Corporation shall, after such redemption or
acquisition, have the status of authorized but unissued Preferred Stock, without designation as to series until such shares are once more classified and designated as part of a particular series by
the Board of Directors. 

        (6)   Voting Rights. 

        (a)   Holders
of the Series A Preferred Stock shall not have any voting rights, except as set forth below. If and whenever dividends on any shares of the
Series A Preferred Stock shall be in arrears for six or more quarterly periods, whether or not consecutive, the number of directors then constituting the Board of Directors shall be increased
by two, if not already increased by reason of similar types of provisions with respect to shares of Parity Stock of any other class or series which is entitled to similar voting rights (the "Voting
Preferred Stock"), and the holders of shares of the Series A Preferred Stock, together with the holders of shares of all other Voting Preferred Stock then entitled to exercise similar voting
rights, voting as a single class regardless of series, shall be entitled to vote for the election of the two additional directors of the Corporation, or fill any vacancy, at any annual meeting of
stockholders or at a special meeting of the holders of the Series A Preferred Stock and of the Voting Preferred Stock called for that purpose. The Corporation must call such special meeting
upon the request of holders of at least 20% of the shares of the Series A Preferred Stock then outstanding. In the case of such a written request, such special meeting shall be held within
90 days after the delivery of such request and, in either case, at the place and upon the notice provided by law and in the Bylaws, provided that the Corporation shall not be required to call
such a special meeting if such request is received less than 120 days before the date fixed for the next annual meeting of stockholders, and the holders of all classes of outstanding Voting
Preferred Stock are offered the opportunity to elect such directors, or fill any vacancy, at such annual meeting of stockholders. Directors so elected shall serve until the next annual meeting of
stockholders or until their respective successors are elected and qualified. If, prior to the end of the term of any director so elected, a vacancy in the office of such director shall occur, during
the continuance of a default in dividends on the Series A Preferred Stock and/or Voting Preferred Stock, by reason of death, resignation, or disability, such vacancy shall be filled for the
unexpired term of such former director by the election of a new director by the remaining director or directors so elected. If and whenever dividends in arrears on outstanding shares of the
Series A Preferred Stock and any other shares of Voting Preferred Stock have been paid and dividends thereon for the current quarterly dividend period shall have been paid or declared and set
apart for payment, then the right of the holders of the Series A Preferred Stock and of such other Voting Preferred Stock to elect the additional two directors shall cease and the terms of
office of the directors shall terminate and the number of directors constituting the Board of Directors shall be reduced accordingly. 

5

 

        (b)   The
affirmative vote or consent of at least two-thirds of the votes entitled to be cast by the holders of the outstanding shares of the Series A
Preferred Stock and the holders of all other classes or series of Parity Stock entitled to vote on such matters, voting as a single class, shall be required to (i) authorize, create, increase
the authorized amount of or issue any shares of any class of Senior Stock or any security convertible into shares of any class of Senior Stock, or reclassify any of the outstanding Parity Stock or
Junior Stock into shares of such Senior Stock, or (ii) amend, alter or repeal any provision of the Charter or Bylaws, whether by merger, consolidation or otherwise, if such action would
materially adversely affect the rights, preferences, privileges, or voting powers of the Series A Preferred Stock; provided, however, that no such vote of the holders of the Series A
Preferred Stock shall be required if, at or prior to the time such amendment, alteration or repeal is to take effect or the issuance of any such Senior Stock or convertible security is to be made, as
the case may be, provisions are made for the redemption of all outstanding shares of the Series A Preferred Stock; provided further, however, with respect to the occurrence of any event set
forth in (ii) above, so long as the Series A Preferred Stock remains outstanding with the terms thereof materially unchanged, the occurrence of any such event shall not be deemed to
materially adversely affect such rights, preferences, privileges or voting powers of the Series A Preferred Stock and, provided further, that any increase in the amount of the authorized
Preferred Stock, including the Series A Preferred Stock, or the creation or issuance of any additional Series A Preferred Stock or other series of Preferred Stock, or any increase in the
amount of authorized shares of such series, in each case ranking on a parity with or junior to the Series A Preferred Stock with respect to payment of dividends or the distribution of assets
upon liquidation, dissolution or winding up, shall not be deemed to materially adversely affect such rights, preferences, privileges or voting powers. 

        For
the purposes of the foregoing provisions, each share of the Series A Preferred Stock shall have one vote per share, except that when any other class or series of Preferred
Stock shall have the right to vote with the Series A Preferred Stock as a single series, then the Series A Preferred Stock and such other class or series shall have one quarter of one
vote per each $25.00 of stated liquidation preference. 

	(7)
	Conversion. The Series A Preferred Stock is not convertible into or exchangeable for any other property or securities of the
Corporation. 

        SECOND:    The shares of Series A Preferred Stock have been classified and designated by the Board of Directors under the
authority contained in the Charter. 

        THIRD:    These Articles Supplementary have been approved by the Board of Directors in the manner and by the vote required by
law. 

        FOURTH:    The undersigned President of the Corporation acknowledges these Articles Supplementary to be the corporate act of the
Corporation and, as to all matters or facts required to be verified under oath, the undersigned President acknowledges that, to the best of his knowledge, information and
belief, these matters and facts are true in all material respects and that this statement is made under the penalties of perjury. 

6Exhibit 4.5  

FIRST AMENDED AND RESTATED PAIRING AGREEMENT  

        THIS FIRST AMENDED AND RESTATED PAIRING AGREEMENT (this "Agreement") is made and entered into as of February 12, 2004, by and between Affordable
Residential Communities Inc., a Maryland corporation (the "REIT"), and Affordable Residential Communities LP, a Delaware limited partnership (the "OP"). 

        WHEREAS,
pursuant to the terms of its charter (the "REIT Charter"), the REIT is authorized to issue up to 10,000,000 shares of its Special Voting Stock, par value $0.01 per share (the
"Special Voting Stock"); 

        WHEREAS,
pursuant to the First Amended and Restated Agreement of Limited Partnership of the OP (the "OP Agreement") the OP is authorized to issue from time to time, where so determined
by the REIT as the General Partner, in accordance with the terms of the OP Agreement, Partnership Common Units that are paired with shares of Special Voting Stock (the "Paired Common Units"); 

        WHEREAS,
on May 2, 2002, the OP issued 5,252,876 Paired Common Units, each of which was paired with one share of Special Voting Stock issued by the REIT, and the OP and the REIT
entered into an agreement with respect to the pairing of these securities (the "Original Pairing Agreement"); 

        WHEREAS,
the OP Agreement and the REIT Charter each provides that the Paired Common Units and the shares of Special Voting Stock, respectively, are not transferable, and shall not be
transferred on the books of the OP or the REIT, respectively, except in combination with the number of shares of Special Voting Stock or Paired Common Units, respectively that are paired therewith
(subject to the provisions of this Agreement); 

        WHEREAS,
effective January 23, 2004, the REIT completed a 0.519-for-1 reverse split of its common stock and the OP completed a
0.519-for-1
reverse split of its Partnership Common Units (including the Paired Common Units) as a result of which each share of Special Voting Stock issued and outstanding thereafter is entitled to 0.519 votes
and each outstanding Paired Common Unit thereafter will be paired with 1.9268 shares of Special Voting Stock; and 

        WHEREAS,
the OP and the REIT wish to amend and restate the Original Pairing Agreement to adjust the pairing of shares of Special Voting Stock and Paired Common Units (the "Pairing"),
including the terms and conditions which will govern the issuance and the transfer of the shares of Special Voting Stock and the Paired Common Units, so that, effective as of January 23, 2004,
each Paired Common Unit owned by a limited partner in the OP shall be paired with 1.9268 shares of Special Voting Stock held by such limited partner, entitling its holder to one vote on all matters on
which stockholders of the REIT are entitled to vote generally, with any remaining fractional interest in a share of Special Voting Stock held by such limited partner after applying this pairing ratio
being repurchased by the REIT for no consideration simultaneously with the repurchase from such limited partner of the corresponding fraction of a Paired Common Unit resulting from the reverse split
of such limited partner's Paired Common Units in exchange for the consideration set forth in the OP Agreement. 

        NOW,
THEREFORE, in consideration of the foregoing premises and the mutual agreements contained herein, the parties hereto agree as follows: 

	1.
	Adjustment of Pairing Ratio; Repurchase of Fractional Shares.

	a.
	As
a result of the 0.519-for-1 reverse split of the Partnership Common Units effected as of January 23, 2004, each Paired Common Unit thereafter shall be
paired with 1.9268 shares of Special Voting Stock, and any fraction of a share of Special Voting Stock remaining after applying this pairing ratio shall be repurchased by the REIT without any
consideration therefor simultaneously with the repurchase of the corresponding fraction of a Paired Common Unit paired therewith resulting from the reverse split of the 

 

Partnership
Common Units in exchange for the cash consideration specified in the OP Agreement. 

	b.
	The
adjustment to the pairing ratio contemplated by Section 1.a. above shall be effective as of January 23, 2004 (the "Effective Date").

	2.
	Transfer of Shares.    Commencing on the Effective Date and continuing until such time as this Agreement shall have been
terminated in the manner provided herein:

	a.
	No
shares of Special Voting Stock shall be transferable, and no such share shall be transferred on the stock transfer books of the REIT, unless a simultaneous transfer is made by the
same transferor to the same transferee of a number of Paired Common Units such that the number of Paired Common Units so transferred is a whole number and the number of shares of Special Voting Stock
so transferred equals the product of 1.9268 and such whole number of Paired Common Units being transferred.

	b.
	No
Paired Common Unit shall be transferable, and no Paired Common Unit shall be transferred on the books of the OP, unless a simultaneous transfer is made by the same transferor to the
same transferee of 1.9268 shares of Special Voting Stock.

	c.
	Notwithstanding
anything to the contrary contained herein, upon any acquisition by the OP or the REIT of any Paired Common Units and any shares of Special Voting Stock (whether
pursuant to Section 8.6 of the OP Agreement or otherwise), all restrictions on transfer set forth in this Agreement with respect to such Paired Common Units and such shares of Special Voting
Stock so acquired shall terminate, and any Paired Common Units and shares of Special Voting Stock acquired by the OP or the REIT may be transferred without regard to the restrictions set forth in this
Agreement.

	d.
	In
the event that any shares of Special Voting Stock are transferred to a trust pursuant to the provisions of Section 7.2(b) of the REIT Charter, all of the Paired Common Units
paired with such shares shall be automatically transferred to such trust concurrently therewith and shall be subject to all the provisions of Section 7.3 of the REIT Charter to the same extent
that the attached shares of Special Voting Stock are so subject.

	3.
	Issuance of Securities.    Commencing on the Effective Date and continuing until such time as this Agreement shall have been
terminated in the manner provided herein:

	a.
	The
REIT shall not issue or agree to issue any shares of Special Voting Stock to any person unless effective provision has been made for the simultaneous issuance to the same person of
a whole number of Paired Common Units and for the pairing of such shares of Special Voting Stock with such Paired Common Units at a ratio of 1.9268 shares of Special Voting Stock to one Paired Common
Unit.

	b.
	The
OP shall not issue or agree to issue any Paired Common Units to any person unless effective provision has been made for the simultaneous issuance to the same person of 1.9268
shares of Special Voting Stock for each Paired Common Unit so issued and for the pairing of such Paired Common Units and shares of Special Voting Stock at such ratio.

	c.
	Nothing
herein shall require that any Partnership Common Unit hereafter issued by the OP be issued as a Paired Common Unit.

	4.
	Stock Certificates.    Commencing on the Effective Date and continuing until such time as this Agreement shall have been
terminated in the manner provided herein:

	a.
	Each
certificate which is issued representing shares of Special Voting Stock shall be printed "back-to-back" with a certificate evidencing the number of Paired
Common Units that are paired therewith in accordance with this Agreement, and shall bear a 

2

 

conspicuous
legend (on the face thereof) referring to the restrictions on transfer set forth in Section 6.3.3 of the REIT Charter. 

	b.
	Each
certificate which is issued evidencing Paired Common Units shall be printed "back-to-back" with a certificate representing the same number of shares of
Special Voting Stock that are paired therewith in accordance with this Agreement, and shall bear a conspicuous legend (on the face thereof) in the form set forth on  Exhibit E of the Partnership
Agreement referring to the restrictions on transfer set forth in Section 8.9 of the OP Agreement.

	5.
	Redemption by the OP or Acquisition by the REIT of Paired Common Units.    Commencing on the date hereof and continuing until
such time as this Agreement shall have been terminated in the manner provided herein:

	a.
	All
shares of Special Voting Stock acquired by the OP in connection with any redemption of the attached Paired Common Units pursuant to Section 8.6.A of the OP Agreement shall
be cancelled and shall become authorized but unissued shares of Special Voting Stock in accordance with Section 6.3.4 of the REIT Charter, and all certificates representing such shares so
acquired by the OP shall be delivered to the REIT for cancellation promptly following the effectiveness of such redemption.

	b.
	All
shares of Special Voting Stock acquired by the REIT in connection with any acquisition of the attached Paired Common Units pursuant to Section 8.6.B of the OP Agreement
shall be cancelled and shall become authorized but unissued shares of Special Voting Stock in accordance with Section 6.3.4 of the REIT Charter.

	6.
	Stock Dividends, Reclassifications, etc.    Commencing on the date hereof and continuing until such time as this Agreement
shall have been terminated in the manner provided herein, unless proper provision has been made in an amendment to this Agreement made in accordance with Section 8 hereof:

	a.
	The
REIT shall not (i) declare or pay any dividend in respect of the outstanding shares of Special Voting Stock consisting in whole or in part of shares of Special Voting Stock,
or (ii) subdivide, combine or otherwise reclassify the outstanding shares of Special Voting Stock.

	b.
	The
OP shall not (i) declare or pay any dividend in respect of the outstanding Paired Common Units consisting in whole or in part of Paired Common Units, or
(ii) subdivide, combine or otherwise reclassify the outstanding Paired Common Units.

	7.
	Termination.    This Agreement and the Pairing may be terminated by mutual consent of both the REIT and the OP.

	8.
	Amendment.    This Agreement may be amended by the parties hereto by action taken or authorized by the Board of Directors of
the REIT and the general partner of the OP. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties hereto.

	9.
	Counterparts.    This Agreement may be executed in counterparts, and each such counterpart hereof shall be deemed to be an
original instrument, but all such counterparts together shall constitute but one agreement.

	10.
	Governing Law.    This Agreement shall be governed by, and construed in accordance with, the laws of the State of Maryland.

	11.
	Entire Agreement.    This Agreement contains the entire understanding and agreement between the parties with respect to its
subject matter, and any and all conflicting or inconsistent discussions, agreements, promises, representations and statements, if any, between the parties or their representatives that are not
incorporated in this Agreement shall be merged into this Agreement.

	12.
	Headings.    The various section headings are inserted for the purposes of reference only and shall not affect the meaning or
interpretation of this Agreement or any provision hereof.

	13.
	Severability.    The provisions of this Agreement shall be severable, and any invalidity, unenforceability or illegality of
any provision or provisions of this Agreement shall not affect any other provision or provisions of this Agreement, and each term and provision of this Agreement shall be construed to be valid and
enforceable to the full extent permitted by law. 

3

 

        IN
WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed on its behalf as of the date first written above. 

	 	 	AFFORDABLE RESIDENTIAL COMMUNITIES INC.
	

 	
 	

By:	
 	

/s/ SCOTT L. GESELL
 Name: Scott L. Gesell

Title: Executive Vice President and Secretary
	

 	
 	
AFFORDABLE RESIDENTIAL COMMUNITIES LP
	

 	
 	

By:	
 	

Affordable Residential Communities Inc., its general partner
	

 	
 	

 	
 	

By:	
 	

/s/ SCOTT L. GESELL
 Name: Scott L. Gesell

Title: Executive Vice President and Secretary

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}]]