Document:

exhibit101.htm

Exhibit 10.1

 

P E R F O R M A N C E   S H A R E   U N I T

A W A R D   A G R E E M E N T

Non-transferable

G R A N T  T O

_________________

(“Grantee”)

by Lowe’s Companies, Inc. (the “Company”) of

___________ Performance Share Units (the “Performance Share Units”)

pursuant to and subject to the provisions of the Lowe’s Companies, Inc. 2006 Long Term Incentive Plan (the “Plan”) and to the terms and conditions set forth on the following pages (the “Terms and Conditions”).

Unless terminated or paid earlier in accordance with the Plan or Section 3 of the Terms and Conditions, the Performance Share Units will be earned and become vested and payable to the Grantee in the form of shares of the Company’s common stock, $0.50 par value after the third anniversary of the Date of Grant based on achievement of the Performance Objectives applicable to the Performance Share Units.

IN WITNESS WHEREOF, Lowe’s Companies, Inc., acting by and through its duly authorized officer, has caused this Agreement to be executed as of the Date of Grant.

LOWE’S COMPANIES, INC.

By:                                                                

Its:  Authorized Officer

Date of Grant:                                                                           

Accepted by Grantee:                                                                           

TERMS AND CONDITIONS

	
1.

	
Grant of Performance Share Units.  The Company hereby grants the Performance Share Units, subject to the terms and conditions set forth in the Lowe’s Companies, Inc. 2006 Long Term Incentive Plan (the “Plan”) and in this Agreement.  The actual number of Performance Share Units earned by the Grantee shall be based on the Company’s achievement of the Performance Objectives described in Section 2 for the period beginning __________ , ____  and ending _________ , ____  (the “Performance Period”).  Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan.

 

  

  

  

 

	
2.

	
Performance Objective.  The Performance Objective for the Performance Share Units shall be ______________.

	
 

The number of Performance Share Units earned shall be determined from the following table:

	  	
Percentage of Performance Share Units Earned

	
__% or higher

	
_%

	
__%

	
__%

	
__%

	
__%

	
Less than __%

	
__%

The percentage of Performance Share Units earned for performance between __% and __% or between __% and __% shall be determined by linear interpolation.

	
3.

	
Distribution of Common Shares for Performance Share Units Earned.

	
  

	
(a)

	
Distribution Following Expiration of Performance Period.  Unless otherwise sooner forfeited in accordance with Section 3(b) or distributed in accordance with Section 3(d), on or within 30 days after ________, _____ (the "Distribution Date"), the Company shall distribute to the Grantee one share of Common Stock for each whole Performance Share Unit earned by the Grantee in accordance with Section 2.

	
  

	
(b)

	
Termination of Employment Prior to Distribution Date.  The Grantee shall forfeit all of Grantee’s right, title and interest in and to the Performance Share Units in the event Grantee’s employment with the Company terminates before the Distribution Date for any reason other than death, Disability or Retirement.

	
  

	
(c)

	
Termination Due to Death, Disability or Retirement.  In the event the Grantee’s employment with the Company terminates prior to the Distribution Date due to death, Disability or Retirement, the Performance Share Units shall remain outstanding and shall be earned in accordance with Section 2 and shares of Common Stock for each whole Performance Share earned shall be distributed on or within 30 days after the Distribution Date in accordance with Section 3(a).  The definition of “Retirement” for purposes of this Agreement shall have the following meaning and not the meaning assigned to such term in the Plan:  The voluntary termination of employment with the approval of the Board at least six (6) months after the Date of Grant and on or after the date Grantee has attained age fifty-five (55) and Grantee’s age plus years of service equal or exceed seventy (70); provided that, Grantee has given the Board at least ten (10) days advance notice of such Retirement.

	
  

	
(d)

	
Change in Control Prior to Distribution Date.  In the event a change in control of the Company (as defined in Section 409A of the Internal Revenue Code) occurs before the Distribution Date, the Performance Share Units shall be earned in accordance with Section 2 based on the achievement of the Performance Objectives through the end of the fiscal year quarter ending immediately prior to such change in control.  Shares of Common Stock for each whole Performance Share Unit earned shall be distributed to the Grantee as soon as administratively practicable, but in no event later than thirty (30) days following such change in control.

 

  

  

  

 

	
4.

	
No Stockholder Rights.  The Performance Share Units shall not entitle the Grantee to any voting, dividend or other rights as a stockholder of the Company until shares of Common Stock are distributed to Grantee in accordance with Section 3.

	
5.

	
Competing Activity.  If Grantee engages in any Competing Activity during Grantee’s employment with the Company or an Affiliate or within one year after the termination of Grantee’s employment with the Company and its Affiliates for any reason, (a) Grantee shall forfeit all of Grantee’s right, title and interest in and to any Performance Share Units as of the time of the Grantee’s engaging in such Competing Activity and such Performance Share Units shall revert to the Company immediately following such event of forfeiture, and (b) Grantee shall remit, upon demand by the Company, the Repayment Amount with respect to any shares of Common Stock that were delivered to Grantee as payment of Performance Share Units during the six (6) month period prior to the date Grantee engaged in the Competing Activity.  The “Repayment Amount” is the aggregate Fair Market Value of the Common Stock underlying the Performance Share Units at the time of delivery to Grantee.  The Repayment Amount shall be payable in cash (which shall include a certified check or bank check), by the tender of shares of Common Stock or by a combination of cash and Common Stock; provided that, regardless of the Fair Market Value of such shares at the time of tender, the tender of the shares shall satisfy the obligation to pay the Repayment Amount for the same number of shares of Common Stock delivered to the Company.  For purposes of this Agreement, Participant will be deemed to be engaged in a Competing Activity if Participant, directly or indirectly, owns, manages, operates, controls, is employed by, or participates in as a 5% or greater shareholder, partner, member or joint venturer, any company which engages in the business activities of the Company or its Affiliates (the “Business Activities”), or engages in, as an independent contractor or otherwise, the Business Activities for himself or on behalf of another person or entity.

	
  

	
Nothing contained in this Section 5 shall be interpreted as or deemed to constitute a waiver of, or diminish or be in lieu of, any other rights that the Company or an Affiliate may possess as a result of Grantee’s misconduct or direct or indirect involvement with a business competing with the business of the Company or an Affiliate.

	
6.

	
No Right of Continued Employment.  Nothing in this Agreement shall interfere with or limit in any way the right of the Company or any Affiliate to terminate Grantee’s employment at any time, nor confer upon Grantee any right to continue in the employ of the Company or any Affiliate.

	
7.

	
Payment of Taxes.

	
  

	
(a)

	
The Company will automatically withhold a number of shares of Common Stock having a fair market value equal to the statutory amount of any federal, state and local taxes of any kind (including Grantee’s FICA obligation) required by law to be withheld, unless Grantee notifies the Company thirty (30) days prior to the issuance of the Common Shares that he or she will satisfy his or her tax withholding obligations in cash.

	
  

	
(b)

	
If Grantee chooses to satisfy his or her tax withholding obligations in cash and complies with the above notification requirement, Grantee will, no later than the date as of which any amount related to the Performance Share Units first becomes includable in Grantee’s gross income for federal income tax purposes, pay to the Company, or make other arrangements satisfactory to the Committee regarding payment of, any federal, state and local taxes of any kind (including Grantee’s FICA obligation) required by law to be withheld with respect to such amount.

 

  

  

  

 

	
  

	
The obligations of the Company under this Agreement will be conditional on such payment or arrangements, and the Company, and, where applicable, its Affiliates will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to Grantee.

	
8.

	
Amendment.  The Committee may amend or terminate this Agreement without the consent of Grantee; provided, however, that such amendment or termination shall not, without Grantee’s consent, reduce or diminish the value of this award.

	
9.

	
Plan Controls.  The terms contained in the Plan, including without limitation the antidilution adjustment provisions, are incorporated into and made a part of this Agreement, and this Agreement shall be governed by and construed in accordance with the Plan.  In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan shall be controlling and determinative.

	
10.

	
Successors.  This Agreement shall be binding upon any successor of the Company, in accordance with the terms of this Agreement and the Plan.

	
11.

	
Severability.  If any one or more of the provisions contained in this Agreement are invalid, illegal or unenforceable, the other provisions of this Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included.

	
12.

	
Notice.  Notices and communications under this Agreement must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid.  Notices to the Company must be addressed to:

	
  

	
Lowe’s Companies, Inc.

	
  

	
1000 Lowe’s Boulevard

	
  

	
Mooresville, NC 28117

	
  

	
Attn: Senior Vice President of Employee Rewards and Services

 

or any other address designated by the Company in a written notice to Grantee. Notices to Grantee will be directed to the address of Grantee then currently on file with the Company, or at any other address given by Grantee in a written notice to the Company.Exhibit 10.34

 

 

 

 

PURCHASE AND SALE
CONTRACT

 

BETWEEN

 

 

 

NATIONAL PROPERTY INVESTORS
5,

 

a California limited
partnership

 

 

 

 

 

AS SELLER

 

 

 

 

AND

 

 

 

 

BHE ACQUISITIONS,
L.L.C.,

 

an Iowa limited liability
company

 

 

 

AS PURCHASER

 

 

WILLOW PARK ON LAKE
ADELAIDE

 

 

TABLE OF CONTENTS

 

	
Article
I
	
DEFINED
TERMS
	
1

	
Article
II
	
PURCHASE
AND SALE, PURCHASE PRICE & DEPOSIT
	
1

	
2.1
	
Purchase
and Sale
	
1

	
2.2
	
Purchase
Price and Deposit
	
1

	
2.3
	
Escrow
Provisions Regarding Deposit
	
2

	
Article
III
	
FEASIBILITY
PERIOD
	
3

	
3.1
	
Feasibility
Period
	
3

	
3.2
	
Expiration
of Feasibility Period
	
3

	
3.3
	
Conduct
of Investigation
	
4

	
3.4
	
Purchaser
Indemnification
	
4

	
3.5
	
Property
Materials
	
5

	
3.6
	
Property
Contracts
	
5

	
Article
IV
	
TITLE
	
6

	
4.1
	
Title
Documents
	
6

	
4.2
	
Survey
	
6

	
4.3
	
Objection
and Response Process
	
6

	
4.4
	
Permitted
Exceptions
	
7

	
4.5
	
Assumed
Encumbrances
	
7

	
4.6
	
Subsequently
Disclosed Exceptions
	
10

	
4.7
	
Purchaser
Financing
	
10

	
4.8
	
Intentionally
omitted
	
11

	
Article
V
	
CLOSING
	
11

	
5.1
	
Closing
Date
	
11

	
5.2
	
Seller
Closing Deliveries
	
12

	
5.3
	
Purchaser
Closing Deliveries
	
13

	
5.4
	
Closing
Prorations and Adjustments
	
13

	
5.5
	
Post
Closing Adjustments
	
17

	
5.6
	
Capital
Improvement Escrow
	
17

	
Article
VI
	
REPRESENTATIONS
AND WARRANTIES OF SELLER AND PURCHASER
	
17

	
6.1
	
Seller’s
Representations
	
17

	
6.2
	
AS-IS
	
19

	
6.3
	
Survival
of Seller’s Representations
	
20

	
6.4
	
Definition
of Seller’s Knowledge
	
20

	
6.5
	
Representations
and Warranties of Purchaser
	
21

	
Article
VII
	
OPERATION
OF THE PROPERTY
	
22

	
7.1
	
Leases
and Property Contracts
	
22

	
7.2
	
General
Operation of Property
	
22

	
7.3
	
Liens
	
22

	
7.4
	
Tax
Appeals
	
22

	
Article
VIII
	
CONDITIONS
PRECEDENT TO CLOSING
	
23

	
8.1
	
Purchaser’s
Conditions to Closing
	
23

	
8.2
	
Seller’s
Conditions to Closing
	
24

	
Article
IX
	
BROKERAGE
	
25

	
9.1
	
Indemnity
	
25

	
9.2
	
Broker
Commission
	
25

	
Article
X
	
DEFAULTS
AND REMEDIES
	
25

	
10.1
	
Purchaser
Default
	
25

	
10.2
	
Seller
Default
	
26

	
Article
XI
	
RISK
OF LOSS OR CASUALTY
	
26

	
11.1
	
Major
Damage
	
26

	
11.2
	
Minor
Damage
	
27

	
11.3
	
Closing
	
27

	
11.4
	
Repairs
	
27

	
Article
XII
	
EMINENT
DOMAIN
	
28

	
12.1
	
Eminent
Domain
	
28

	
Article
XIII
	
MISCELLANEOUS
	
28

	
13.1
	
Binding
Effect of Contract
	
28

	
13.2
	
Exhibits
and Schedules
	
28

	
13.3
	
Assignability
	
28

	
13.4
	
Captions
	
28

	
13.5
	
Number
and Gender of Words
	
28

	
13.6
	
Notices
	
28

	
13.7
	
Governing
Law and Venue
	
31

	
13.8
	
Entire
Agreement
	
32

	
13.9
	
Amendments
	
32

	
13.10
	
Severability
	
32

	
13.11
	
Multiple
Counterparts/Facsimile Signatures
	
32

	
13.12
	
Construction
	
32

	
13.13
	
Confidentiality
	
32

	
13.14
	
Time
of the Essence
	
32

	
13.15
	
Waiver
	
33

	
13.16
	
Attorneys’
Fees
	
33

	
13.17
	
Time
Zone/Time Periods
	
33

	
13.18
	
1031
Exchange
	
33

	
13.19
	
No
Personal Liability of Officers, Trustees or Directors
	
33

	
13.20
	
ADA
Disclosure
	
34

	
13.21
	
No
Recording
	
34

	
13.22
	
Relationship
of Parties
	
34

	
13.23
	
AIMCO
Marks
	
34

	
13.24
	
Non-Solicitation
of Employees
	
34

	
13.25
	
Survival
	
34

	
13.26
	
Multiple
Purchasers
	
35

	
13.27
	
WAIVER
OF JURY TRIAL
	
35

	
13.28
	
Radon
Notice
	
35

	
Article
XIV
	
LEAD–BASED
PAINT DISCLOSURE
	
35

	
14.1
	
Disclosure
	
35

	
14.2
	
Consent
Agreement
	
35

EXHIBITS AND SCHEDULES

 

EXHIBITS

 

Exhibit
A          Legal Description

Exhibit
B          Form of Special Warranty
Deed

Exhibit
C          Form of Bill of Sale

Exhibit
D          Form of General
Assignment and Assumption

Exhibit
E           Form of Assignment
and Assumption of Leases and Security Deposits

Exhibit
F           Form of Notice to
Vendor regarding Termination of Contract

Exhibit
G          Form of Tenant
Notification

Exhibit
H          Form of Lead Paint
Disclosure

 

 

SCHEDULES

 

Schedule
1       Defined Terms

 

 

PURCHASE AND SALE CONTRACT

 

THIS
PURCHASE AND SALE CONTRACT (this “Contract”) is entered
into as of the 26th day of May, 2011 (the “Effective
Date”), by and between NATIONAL PROPERTY INVESTORS 5, a
California limited partnership, having an address at 4582 South Ulster Street
Parkway, Suite 1100, Denver, Colorado 80237 (“Seller”), and BHE
ACQUISITIONS, L.L.C., an Iowa limited liability company, having a principal
address at 400 Locust Street, Suite 790, Des Moines, Iowa 50309
(“Purchaser”).

NOW,
THEREFORE, in consideration of mutual covenants set forth herein, Seller and
Purchaser hereby agree as follows:

RECITALS

A.       
Seller owns the real estate located in Seminole County, Florida, as more
particularly described in Exhibit A attached hereto and made a part
hereof, and the improvements thereon, commonly known as Willow Park on Lake
Adelaide.

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.

Article I
DEFINED
TERMS

Unless
otherwise defined herein, any term with its initial letter capitalized in this
Contract shall have the meaning set forth in Schedule 1 attached
hereto and made a part hereof.

Article
II
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 the Property from
Seller, all in accordance with the terms and conditions set forth in this
Contract.

2.2             
Purchase Price and Deposit.  The total purchase price
(“Purchase Price”) for the Property shall be an amount equal to
$8,950,000.00 payable by Purchaser, as follows:

2.2.1       
Within 2 Business Days following the Effective Date, Purchaser shall
deliver to First American Title Insurance Company of New York, c/o Linda J.
Isaacson, 633 Third Avenue, New York, New York 10017, Telephone: (212) 850-0664,
Facsimile: (212) 331-1467, Email: LIsaacson@firstam.com (“Escrow
Agent” or “Title Insurer”) an initial deposit (the
“Initial Deposit”) of $100,000.00 by wire transfer of immediately
available funds (“Good Funds”).  

2.2.2       
If Purchaser gives a notice to proceed in accordance with
Section 3.2, then within one
(1) Business Day after giving such notice to proceed, Purchaser shall deliver to
Escrow Agent an additional deposit (the “Additional
Deposit”) of $250,000.00 by wire transfer of Good Funds.  

2.2.3       
At the Closing, subject to Purchaser’s obligations under
Section 4.5, Purchaser shall
receive a credit against the Purchase Price in the amount of the outstanding
principal balance of the Note, together with all accrued but unpaid interest (if
any) thereon, as of the Closing Date (the “Loan Balance”) to the
extent that the Loan Assumption and Release occurs at the Closing.

2.2.4       
The balance of the Purchase Price for the Property shall be paid to and
received by Escrow Agent by wire transfer of Good Funds no later than 12:00 noon
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 Contract.  Escrow Agent
shall invest the Deposit in an FDIC-insured, interest-bearing bank account or
FDIC-insured money market fund reasonably approved by Purchaser and Seller, 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 Contract.

2.3.2       
Escrow Agent shall hold and apply the Deposit in strict accordance with
the terms of this Contract.  The tax identification numbers of the parties
shall be furnished to Escrow Agent upon request.

2.3.3       
Except for the return of the Deposit to Purchaser as a result of
Purchaser exercising its termination right under Section 3.2 below (in which event Escrow Agent shall
promptly release the Deposit to Purchaser on demand), 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 Contract 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.

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 and shall not be
liable for any act or omission on its part unless taken or suffered in bad faith
in willful disregard of this Contract 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 Contract 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
Contract.  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 and Purchaser’s closing instruction letter(s) 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 Internal Revenue Code of
1986, as amended (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 their 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.

Article
III
FEASIBILITY PERIOD

3.1             
Feasibility Period.  Subject to the terms of
Sections 3.3 and 3.4 and the rights of Tenants under the
Leases, from the Effective Date to and including June 27, 2011 (the
“Feasibility Period”), and thereafter while this Agreement remains
in effect, Purchaser, and its agents, contractors, engineers, surveyors,
attorneys, and employees (collectively, “Consultants”) shall, at
no cost or expense to Seller, have the right from time to time to enter onto the
Property to conduct and make any and all customary studies, tests, examinations,
inquiries, inspections and investigations of or concerning the Property, review
the Materials and otherwise confirm any and all matters which Purchaser may
reasonably desire to confirm with respect to the Property and Purchaser’s
intended use thereof (collectively, the “Inspections”).

3.2             
Expiration of Feasibility Period.  If the results of
the matters in Section 3.1
and the other title or survey matters are satisfactory to Purchaser and
Purchaser elects to proceed with this transaction, in Purchaser’s sole and
absolute discretion, then Purchaser shall have the right to give written notice
to proceed 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 fails to
provide such notice, this Contract 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 gives Seller a
written notice to proceed on or before the date of the expiration of the
Feasibility Period, this Contract shall remain in full force and effect, the
Deposit shall be non-refundable except as otherwise expressly set forth in this
Contract, and Purchaser’s obligation to purchase the Property shall be
conditional only as provided in Section 8.1 and Purchaser shall deliver the
Additional Deposit to Escrow Agent in accordance with Section 2.2.2 above.

3.3             
Conduct of Investigation.  Purchaser shall not permit
any mechanics’ 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.  Purchaser shall give
reasonable advance notice to Seller prior to any entry onto the Property and
shall permit Seller to have a representative present during all Inspections
conducted at the Property.  Purchaser shall take all reasonable actions and
implement all protections necessary to ensure that all actions taken in
connection with the Inspections, and all equipment, materials and substances
generated, used or brought onto the Property pose no material threat to the
safety of persons, property or the environment.

3.4             
Purchaser Indemnification.

3.4.1       
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, mechanics’
liens, materialmen’s liens, liabilities, penalties, interest, losses, demands,
actions, causes of action, claims, costs and expenses (including reasonable
attorneys’ fees, including the cost of in-house counsel and appeals)
(collectively, “Losses”) arising from or related to Purchaser’s or
its Consultants’ entry onto the Property, and any Inspections or other acts by
Purchaser or Purchaser’s Consultants with respect to the Property during the
Feasibility Period or otherwise.  Purchaser shall, however, not be
liable for any damages incurred by Seller resulting from the mere discovery by
Purchaser of a pre-existing condition at or with regard to the Property;
provided, however, that, if Purchaser proceeds with acquisition of the Property
after the acquisition of the Feasibility Period, Purchaser shall accept the
Property with such pre-existing condition and assume any liabilities associated
therewith.

3.4.2       
Notwithstanding anything in this Contract to the contrary, Purchaser
shall not be permitted to perform any invasive tests on the Property without
Seller’s prior written consent, which consent shall not be unreasonably
withheld, conditioned or delayed.  If Purchaser desires to perform any
invasive tests, Purchaser shall give prior written notice thereof to Seller,
which notice shall be accompanied by a detailed description and plan of the
invasive tests Purchaser desires to perform.  Further, 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 Seller’s reasonable judgment 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 the
Property or Seller’s interest therein.  Purchaser shall, at Purchaser’s
sole cost and expense, and in accordance with all applicable environmental laws,
dispose of any hazardous materials which have been specifically removed from or
at the Property by Purchaser or its agents, representatives, employees or
designees in connection with Purchaser’s environmental studies.  Purchaser
shall use reasonable 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, the 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 $1,000,000.00 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 in which the Property is located.  Purchaser shall
deliver 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 the earlier to occur of
(i) Purchaser’s or Purchaser’s Consultants’ entry onto the Property, or
(ii) the expiration of 5 days after the Effective Date.

3.5             
Property Materials.  

3.5.1       
Within 5 Business Days after the Effective Date, and to the extent the
same have not already been provided by Seller to Purchaser, Seller agrees to
use reasonable efforts to deliver to Purchaser, or at Seller’s option make
available at the Property, copies of such documents and information concerning
the Property that are in Seller’s possession or reasonable control, other than
such documents and information that Seller deems to be confidential or
proprietary (collectively, the “Materials”).

3.5.2       
Except as expressly set forth in Seller’s Representations, Seller makes
no representations or warranties, 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 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.  All
Materials and Third-Party Reports shall be returned to Seller or destroyed by
Purchaser if this Contract is terminated for any reason.

3.5.3       
Not later than 5 Business Days after the Effective Date, and to the
extent the same has not already been provided by Seller to Purchaser, Seller
shall deliver to Purchaser (or otherwise make available to Purchaser as provided
under Section 3.5.1) the
most recent rent roll for the Property, which is the rent roll Seller uses in
the ordinary course of operating the Property which includes an aged delinquency
report and a ledger of deposits (the “Rent Roll”).  Seller
makes no representations or warranties regarding the Rent Roll other than the
express representation set forth in Section 6.1.5.

3.5.4       
Not later than 5 Business Days after the Effective Date, and to the
extent the same has not already been provided by Seller to Purchaser, Seller
shall deliver to Purchaser (or otherwise make 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 6.1.6. 

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
which Purchaser desires to terminate at the Closing (the “Terminated
Contracts”); provided that (a) the effective date of such
termination on or after Closing shall be subject to
the express terms of such Terminated Contracts, (b) if any such Property
Contract cannot by its terms be terminated at Closing, it shall be assumed by
Purchaser and not be a Terminated Contract, and (c) to the extent that any
such Terminated Contract requires payment of a penalty, premium, or damages,
including liquidated damages, for cancellation, Purchaser shall be solely
responsible for the payment of any such cancellation fees, penalties, or
damages, including liquidated damages.  If Purchaser fails to deliver the
Property Contracts Notice on or before the expiration of the Feasibility Period,
then there shall be no Terminated Contracts and Purchaser shall assume all
Property Contracts at the Closing.  If Purchaser delivers the Property
Contracts Notice to Seller on or before the expiration of the Feasibility
Period, then Seller shall execute and deliver, on or before Closing, a vendor
termination notice (in the form attached hereto as Exhibit F) for
each Terminated Contract informing the vendor(s) of the termination of such
Terminated Contract as of the Closing Date (subject to any delay in the
effectiveness of such termination pursuant to the express terms of each
applicable Terminated Contract) (the “Vendor Terminations”). 
To the extent that any Property Contract to be assigned to Purchaser requires
vendor consent, then, prior to the Closing, Purchaser and Seller shall attempt
to obtain from each applicable vendor a consent (each a “Required
Assignment Consent”) to such assignment, and Purchaser shall indemnify,
hold harmless and, if requested by Seller (in Seller’s sole discretion), defend
(with counsel approved by Seller) Seller’s Indemnified Parties from and against
any and all Losses arising from or related to a failure to obtain such
consents.

Article
IV
TITLE

4.1             
Title Documents.  Within 10 days after the Effective
Date, Seller shall cause to be delivered to Purchaser a standard form commitment
or preliminary title report (“Title Commitment”) to provide a
standard American Land Title Association owner’s title insurance policy for the
Land and Improvements, 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”).  Seller shall be responsible only for
payment of the title examination, charges for the preparation of the Title
Commitment and the minimum risk rate premium for the Title Policy. 
Purchaser shall be solely responsible for payment premiums associated with any
requested endorsements.  

4.2             
Survey.  Subject to Section 3.5.2, within 3 Business Days after the
Effective Date, Seller shall deliver to Purchaser any 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 (such new or updated survey 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 20 days after the Effective Date (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 25 days after the Effective
Date (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, not to exceed 30 days in the
aggregate.  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 Contract
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 Contract shall be subject to the following, all of which shall be deemed
“Permitted Exceptions”:

4.4.1       
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 modified
to be limited to those parties in possession pursuant to the Leases, and
(d) the standard exception pertaining to taxes and assessments, which shall
be limited to taxes and assessments not yet due and payable as of the Closing
Date; 

4.4.2       
All Leases;

4.4.3       
The Assumed Encumbrances;

4.4.4       
Applicable zoning and governmental regulations and ordinances;
and

4.4.5       
Any defects in or objections to title to the Property, or title
exceptions or encumbrances, arising by, through or under Purchaser.

4.5             
Assumed Encumbrances.

4.5.1       
Purchaser recognizes and agrees that, in connection with (a) a loan
(the “First Loan”) made to Seller by Federal Home Loan Mortgage
Corporation, the Property presently is encumbered by an Amended and Restated
Multifamily Mortgage, Assignment of Rents and Security Agreement dated December
1, 2005 and recorded December 9, 2005 at Book 06031, Pages 0442-0511 (the
“First Mortgage”) and certain other security and related documents
in connection with the First Loan, (b) a loan (the “Second
Loan”) made to Seller by GMAC Commercial Mortgage Corporation, and
assigned to Federal Home Loan Mortgage Corporation, the Property presently is
encumbered by a Multifamily Mortgage, Assignment of Rents and Security Agreement
dated December 1, 2005 and recorded December 9, 2005 at Book 06031, Pages
0512-0579 (the “Second Mortgage”) and certain other security and
related documents in connection with the Second Loan, and (c) a loan (the
“Third Loan”) made to Seller by GMAC Commercial Mortgage
Corporation, and assigned to Federal Home Loan Mortgage Corporation, the
Property presently is encumbered by a Multifamily Mortgage, Assignment of Rents and Security Agreement dated August 31,
2007 and recorded September 12, 2007 at Book 06816, Pages 0877-0948 (the
“Third Mortgage”) and certain other security and related documents
in connection with the Third Loan (the First Mortgage, the Second Mortgage and
the Third Mortgage are collectively referred to herein as the “Assumed
Mortgages” and individually as an “Assumed Mortgage” and
together with the other security and related documents are collectively referred
to herein as the “Assumed Encumbrances”).  The First Loan is
evidenced by that certain promissory note dated December 1, 2005 in the stated
principal amount of $3,387,088.00 (the “First Note”).  The
Second Loan is evidenced by that certain promissory note dated December 1, 2005
in the stated principal amount of $2,900,000.00 (the “Second
Note”).  The Third Loan is evidenced by that certain promissory
note dated August 31, 2007 in the stated principal amount of $800,000.00
(the “Third Note”).  The First Note, the Second Note and the
Third Note are collectively referred to herein as the “Notes” and
each individually, a “Note”.  The Notes, together with the
Assumed Mortgages, the Assumed Encumbrances and any other documents executed by
Seller in connection with the Loans are collectively referred to herein as the
“Assumed Loan Documents”.  The current holders of each of the
Notes are collectively referred to herein as the “Lenders” and
each individually as a “Lender”.  Within 10 days after the
Effective Date, Seller agrees that it will make available to Purchaser (in the
same manner in which Seller is permitted to make the Materials available to
Purchaser under Section 3.5.1) copies of the Assumed Loan
Documents which are in Seller’s possession or reasonable control (subject to
Section 3.5.2).

4.5.2       
Purchaser agrees that, at the Closing, (a) Purchaser shall assume
Seller’s obligations under the Note and all of the other Assumed Loan Documents
and accept title to the Property subject to the Mortgage and the Assumed
Encumbrances, and (b) the Lender shall release Seller, as well as
any guarantors and other obligated parties under the Assumed Loan Documents,
from all obligations under the Assumed Loan Documents (and any related
guarantees or letters of credit), including, without limitation, any obligation
to make payments of principal and interest under the Note (collectively, the
foregoing (a) and (b) referred to herein as the “Loan Assumption and
Release”).  Purchaser acknowledges and agrees that (x) certain
of the provisions of the Assumed Loan Documents may have been negotiated for the
exclusive benefit of Seller, AIMCO or their respective affiliates (the
“Specific AIMCO Provisions”), and (y) unless Lender otherwise
agrees in Lender’s sole and arbitrary discretion, Purchaser will not be
permitted to assume the benefit of the Specific AIMCO Provisions and the same
shall be of no further force or effect from and after the Closing Date.

4.5.3       
Purchaser further acknowledges that the Assumed Loan Documents require
the satisfaction by Purchaser of certain requirements as set forth therein to
allow for the Loan Assumption and Release.  Accordingly, Purchaser, at its
sole cost and expense and within 15 days after the Effective Date (the
“Loan Assumption Application Submittal Deadline”), shall complete
and submit the initial application to Lender’s servicer(s) for assumption of the
Loan together with all documents and information required in connection with
such application (the “Loan Assumption Application”). 
Purchaser agrees to provide Seller with a copy of the Loan Assumption
Application no later than 2 Business Days prior to the Loan Assumption
Application Submittal Deadline and shall provide evidence of its submission to
Lender on or before the Loan Assumption Application Submittal Deadline. 
Purchaser acknowledges and agrees that Purchaser is solely responsible for the
preparation and submittal of the Loan Assumption Application, 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 Application.

4.5.4       
Purchaser shall comply with Lender’s assumption guidelines in connection
with the Loan Assumption and Release, and, if required by the Lender, Purchaser
shall cause such other person or entity reasonably acceptable to the Lender, to
execute and deliver a customary “non-recourse carve-out” guaranty and such other
guaranty(s), if any, which are a part of the Assumed Loan Documents and a
customary environmental indemnity in favor of Lender.  Purchaser shall be
responsible at its sole cost and expense for correcting and re-submitting any
deficiencies noted by Lender in connection with the Loan Assumption Application
no later than 3 Business Days after notification from Lender of such
deficiency.  Purchaser also shall provide Seller with a copy of any
correspondence from Lender with respect to the Loan Assumption Application no
later than 3 Business Days after receipt of such correspondence from
Lender.  Purchaser acknowledges that Lender’s assumption guidelines may not
be consistent with the provisions of the Assumed Loan Documents concerning the
Loan Assumption and Release.  Purchaser shall coordinate with the Lender to
comply with the appropriate provisions of both the Assumed Loan Documents and
Lender assumption guidelines in order to allow for the Loan Assumption and
Release.

4.5.5       
Purchaser shall pay all fees and expenses (including, without limitation,
all servicing fees and charges, transfer fees, assumption fees, title fees and
endorsement fees) imposed or charged by the Lender or its counsel (such fees and
expenses collectively being referred to as the “Lender Fees”), in
connection with the Loan Assumption Application and the Loan Assumption and
Release.

4.5.6       
Seller shall assign all of its right, title and interest in and to all
reserves, impounds and other accounts held by Lender in connection with the
Loan, and at Closing, Purchaser shall remit to Seller an amount equal to the
balance of such reserves, impounds and accounts so assigned.  Additionally,
Purchaser shall be responsible for funding any additional or increased reserves,
impounds or accounts required by Lender to be maintained by Purchaser in
connection with the Loan after the Loan Assumption and Release (the
“Required Loan Fund Amounts”).

4.5.7       
Purchaser agrees promptly to deliver to the Lender all documents and
information required by the Assumed Loan Documents, and such other information
or documentation as the Lender reasonably may request, including, without
limitation, financial statements, income tax returns and other financial
information for Purchaser and any required guarantor.  Seller agrees that
it will cooperate with Purchaser and Lender, at no cost or expense to Seller, in
connection with Purchaser’s application to Lender for approval of the Loan
Assumption and Release.

4.5.8       
To the extent required by Lender, no later than 10 days after the
Effective Date, Purchaser shall order a Phase I Environmental study and/or
property condition report (prepared by a consultant and engineer reasonably
acceptable to Seller and Lender), and covenants that such Phase I Environmental
study and/or property condition report shall be delivered to Seller and Lender
no later than 10 days prior to the Closing Date in connection with and as a
precondition to the Loan Assumption and Release.

4.5.9       
Purchaser shall be in default hereunder if Purchaser fails to submit a
complete Loan Assumption Application by the Loan Application Submittal Deadline,
in which event Seller may terminate this Contract and the Deposit shall be
immediately released by the Escrow Agent to Seller.

4.6             
Subsequently Disclosed Exceptions.  If at any time
after the expiration of the Feasibility Period, any update to the Title
Commitment or Existing 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 (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, not to exceed 30
days in the aggregate.  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
Contract, 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 Contract, 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 Contract 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 .  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. 
Notwithstanding the foregoing to the contrary and provided that
(a) Purchaser fully complies with its obligations under this Contract
(including this Section 4.7)
and the requirements of the Assumed Mortgages in connection with obtaining the
Loan Assumption and Release, (b) Purchaser uses commercially reasonable
efforts to obtain the Loan Assumption and Release, and (c) Purchaser does
not obtain the consent of the Lender to the Loan Assumption and Release on terms
that do not impose new material adverse conditions or material adverse
modifications to the existing loan terms on Purchaser within 60 days after the
Effective Date (the “Loan Approval Period”), then Purchaser shall
have the right to give Escrow Agent notice terminating this Contract based
solely on the fact that the Loan Assumption and Release has not been approved by
the Lender (the “Loan Assumption Approval Termination”) on or
before the expiration of the Loan Approval Period, in which event this Contract
shall be of no further force and effect, subject to and except for Purchaser’s
liability pursuant to Section 3.3 and any other provision of this
Contract which survives such termination, and Escrow Agent shall forthwith
return the Deposit to Purchaser.  For purposes of the preceding sentence, a
material increase in the reserves or impounds required under the Assumed Loan
Documents would constitute a new material adverse condition.  If Purchaser
fails to provide Seller with written notice of termination prior to the
expiration of the Loan Approval Period in strict accordance with the notice
provisions of this Contract, Purchaser’s right to terminate under this
Section 4.7 shall be permanently waived, this Contract shall remain
in full force and effect, the Deposit shall be
non-refundable (except as otherwise expressly provided herein with respect to
the Deposit), and Purchaser’s obligation to obtain the Lender’s approval of the
Loan Assumption and Release and to purchase the Property shall be non-contingent
and unconditional except only for satisfaction of the conditions expressly
stated in Section 8.1. 
Purchaser recognizes and agrees that if the Loan Approval Period expires and
Purchaser does not terminate this Contract, the Loan Assumption and Release
shall not be a condition to Purchaser’s obligation to close, and, if the Loan
Assumption and Release is not obtained and the Closing has not occurred on or
before the Closing Date, Purchaser shall be in default under this Contract,
entitling the Seller to terminate this Contract, in which event the Deposit
shall be immediately released to Seller by the Escrow Agent and this Contract
shall be of no further force and effect, subject to and except for Purchaser’s
liability pursuant to Section 3.3 and any other provision of this
Contract which survives such termination.  Provided that (a) Purchaser
fully complies with its obligations under this Contract (including those set
forth under this Section 4.7)
and the requirements of the Assumed Loan Documents and with obtaining the Loan
Assumption and Release, (b) Purchaser has and is using commercially
reasonable efforts to obtain the Loan Assumption and Release, (c) Purchaser
is not in default under the terms of this Contract, and (d) Purchaser does
not obtain the consent of the Lender to the Loan Assumption and Release on terms
and conditions that do not impose new material adverse conditions or material
adverse modifications to the existing loan terms on Purchaser, on or before Loan
Approval Period, Purchaser shall be permitted one 30-day extension of the Loan
Approval Period for the sole purpose of obtaining Lender’s approval of the Loan
Assumption and Release.  In order to exercise such 30-day extension of the
Loan Approval Period, Purchaser must (i) deliver written notice of such
extension to Seller no later than 5 Business Days prior to the scheduled
expiration of the original Loan Approval Period, and (ii) simultaneously
with such notice to Seller, deliver to Escrow Agent the amount of $25,000, 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.  

4.8             
Intentionally omitted.

Article
V
CLOSING

5.1             
Closing Date.  The Closing shall occur on the date
that is fifteen (15) days after the expiration of the Loan Approval Period (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. 
Notwithstanding the foregoing to the contrary, Seller shall have the option, by
delivering written notice to Purchaser, to extend the Closing Date to the last
Business Day of the month in which the Closing Date otherwise would occur
pursuant to the preceding sentence, in connection with the Loan Assumption and
Release.  Further, if required in order to obtain any necessary
consents or approvals pursuant to Section 8.2.5, then Seller may extend the
Closing Date to a date not later than forty-five (45) days following the Closing
Date specified in the first sentence of this paragraph.  Additionally, if,
the National Weather Service has issued a “Tropical Storm” or “Hurricane Watch”
(as defined by the National Weather Service), formally for a named storm with a
projected path towards Florida within 10 days prior to the then scheduled
Closing Date such that a situation exists where insurance
underwriters are either unwilling to provide property insurance quotes
(including wind coverage) for the Property or rescind quotes for the Property
that have been provided to Purchaser and, as a result, Purchaser is unable to
procure acceptable insurance by the Closing Date, then Purchaser may postpone
the Closing until: the earlier of (a) 10 days after the then scheduled
Closing Date, and (b) such time as (i) restoration of utilities and
other services essential to the operation of the Property; and
(ii) Purchaser is able to procure acceptable insurance.

5.2             
Seller Closing Deliveries.  Except for the closing
statement which shall be delivered on or before the Closing Date, Seller shall
deliver to Escrow Agent, each of the following items no later than 1 Business
Day prior to the Closing Date:

5.2.1       
Special Warranty Deed (the “Deed”) in the form attached as
Exhibit B to Purchaser, subject to the Permitted Exceptions.

5.2.2       
A Bill of Sale in the form attached as Exhibit C.

5.2.3       
A General Assignment in the form attached as Exhibit D (the
“General Assignment”).

5.2.4       
An Assignment of Leases and Security Deposits in the form attached as
Exhibit E (the “Leases Assignment”).

5.2.5       
Seller’s counterpart signature to the closing statement prepared by Title
Insurer.

5.2.6       
A title affidavit or an indemnity form reasonably acceptable to Seller,
which is sufficient to enable Title Insurer to delete the standard pre-printed
exceptions to the title insurance policy to be issued pursuant to the Title
Commitment.  

5.2.7       
A certification of Seller’s non-foreign status pursuant to
Section 1445 of the Internal Revenue Code of 1986, as amended.

5.2.8       
Resolutions, certificates of good standing, and such other organizational
documents as Title Insurer shall reasonably require evidencing Seller’s
authority to consummate this transaction.

5.2.9       
An updated Rent Roll effective as of a date no more than 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 8.1.  

5.2.10    An updated
Property Contracts List effective as of a date no more than 3 Business Days
prior to the Closing Date; provided, however, that the content of such updated
Property Contracts List shall in no event expand or modify the conditions to
Purchaser’s obligation to close as specified under Section 8.1.

5.2.11    Such notices,
transfer disclosures, affidavits or other similar documents that are required by
applicable laws to be executed by Seller or otherwise reasonably necessary in
order to consummate the transactions contemplated under terms of the
Contract.

5.3             
Purchaser Closing Deliveries.  Except for:
(i) the closing statement which shall be delivered on or before the Closing
Date, and (ii) the balance of the Purchase Price which is to be delivered
at the time specified in Section 2.2.4, Purchaser shall deliver to Escrow
Agent, each of the following items no later than 1 Business Day prior to the
Closing Date:

5.3.1       
The full Purchase Price (with credit for the Deposit and, if applicable,
the Loan Balance), plus or minus the adjustments or prorations required by this
Contract.

5.3.2       
Purchaser’s counterpart signature to the closing statement prepared by
Title Insurer.

5.3.3       
A countersigned counterpart of the General Assignment.

5.3.4       
A countersigned counterpart of the Leases Assignment.

5.3.5       
Notification letters to all Tenants prepared and executed by Purchaser in
the form attached hereto as Exhibit G, which shall be delivered to
all Tenants by Purchaser immediately after Closing.  

5.3.6       
Any cancellation fees or penalties due to any vendor under any Terminated
Contract as a result of the termination thereof.

5.3.7       
Resolutions, certificates of good standing, and such other organizational
documents as Title Insurer shall reasonably require evidencing Purchaser’s
authority to consummate this transaction.

5.3.8       
If Purchaser elects to cause and the Lender has agreed to permit the Loan
Assumption and Release, all documents, instruments, guaranties, Lender Fees,
Required Loan Fund Amounts, and other items or funds required by the Lender to
cause the Loan Assumption and Release.

5.3.9       
Such notices, transfer disclosures, affidavits or other similar documents
that are required by applicable law to be executed by Purchaser or otherwise
reasonably necessary in order to consummate the transactions contemplated under
this Contract.

5.4             
Closing Prorations and Adjustments.

5.4.1       
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 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 5.4 prior to Closing and shall use good
faith efforts to deliver such Proration Schedule 2 days prior to Closing. 

5.4.2       
Operating Expenses.  All of the operating,
maintenance, taxes (other than real estate 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.  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.

5.4.3       
Utilities.  The final readings and final billings for
utilities will be made if possible as of the Closing Date, in which case Seller
shall pay 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.  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
terminate Seller’s account, effective as of noon on the Closing Date. 
Seller shall have no responsibility or liability for Purchaser’s failure to
arrange utility service for the Property as of the Closing Date.  Purchaser
shall indemnify, hold harmless and, if requested by Seller (in Seller’s sole
discretion), defend (with counsel approved by Seller) Seller’s Indemnified
Parties from and against any and all Losses arising from or related to
Purchaser’s failure to arrange utility service as of the Closing Date.

5.4.4       
Real Estate Taxes.  Any real estate ad valorem or
similar taxes for the Property, or any installment of assessments payable in
installments which installment is payable in the calendar year of Closing, shall
be prorated to the date of Closing, based upon actual days involved.  The
proration of real property taxes or installments of assessments shall be based
upon the assessed valuation and 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 figures from the preceding year
(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. 

5.4.5       
Property Contracts.  Purchaser shall assume at Closing
the obligations under the Property Contracts assumed by Purchaser; however,
operating expenses shall be prorated under Section 5.4.2.

5.4.6       
Leases.

5.4.6.1           
All collected rent (whether fixed monthly rentals, additional rentals,
escalation rentals, retroactive rentals, operating cost pass-throughs or other
sums and charges payable by Tenants under the Leases), income and expenses from
any portion of the Property shall be prorated as of the Closing Date. 
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.  In addition, if
Purchaser elects to terminate any utility rebilling
contract associated with the Property, then Seller shall receive a credit at
Closing equal to the average of the amount of the monthly utility bill
associated with the Property for the preceding 12 months, multiplied by 3. 
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, but Purchaser shall pay Seller such accrued Uncollected Rents as and
when collected by Purchaser.  For a period of 180 days following Closing,
Purchaser agrees to bill Tenants of the Property for all Uncollected Rents and
to take reasonable actions (which shall not include an obligation to commence
legal action) to collect Uncollected Rents.  Notwithstanding the foregoing,
Purchaser’s obligation to collect Uncollected Rents shall be limited to
Uncollected Rents of not more than 90 days past due, and Purchaser’s collection
of rents shall be applied, first, towards current rent due and owing under the
Leases, second, to Purchaser’s reasonable third-party costs of such collection,
and third to Uncollected Rents.  After the Closing, Seller shall continue
to have the right, but not the obligation, in its own name, to demand payment of
and to collect Uncollected Rents owed to Seller by any Tenant, which right shall
include, without limitation, the right to continue or commence legal actions or
proceedings against any Tenant and the delivery of the Leases Assignment shall
not constitute a waiver by Seller of such right; provided however, that the
foregoing right of Seller shall be limited to actions seeking monetary damages
and, in no event, shall Seller seek to evict any Tenants in any action to
collect Uncollected Rents.  Purchaser agrees to cooperate with Seller in
connection with all efforts by Seller to collect such Uncollected Rents and to
take all steps, whether before or after the Closing Date, as may be necessary to
carry out the intention of the foregoing; provided, however, that Purchaser’s
obligation to cooperate with Seller pursuant to this sentence shall not obligate
Purchaser to terminate any Tenant lease with an existing Tenant or evict any
existing Tenant from the Property.

5.4.6.2           
At Closing, 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, including, but not limited to, security, damage,
pet or other refundable deposits 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 Contract (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.

5.4.7       
Existing Loan.  Seller shall be responsible for all
principal required to be paid under the terms of the Note prior to Closing,
together with all interest accrued under the Note prior to Closing, all of which
may be a credit against the Purchase Price as provided in
Section 2.2.3. 
Purchaser shall be responsible for the payment of all principal required to be
paid from and after Closing, together with all interest accruing under the Note
from and after Closing.  Purchaser shall also be responsible for all Lender
Fees and all other fees, penalties, interest and other
amounts due and owing from and after Closing under the Assumed Loan Documents as
a result of the Loan Assumption and Release.  As set forth in
Section 4.5.3, any existing
reserves, impounds and other accounts maintained in connection with the Loan
shall be assigned to Purchaser, and at Closing, Purchaser shall pay to Seller an
amount equal to the balance of such reserves, impounds and accounts so assigned.

5.4.8       
Insurance.  No proration shall be made in relation to
insurance premiums and insurance policies will not be assigned to
Purchaser.  Seller shall have the risk of loss of the Property until 11:59
p.m. the day prior to Closing Date (“Risk of Loss Transfer”),
after which time the risk of loss shall pass to Purchaser and Purchaser shall be
responsible for obtaining its own insurance thereafter.

5.4.9       
Employees.  All of Seller’s and Seller’s manager’s
on-site employees shall have their employment at the Property terminated as of
the Closing Date.

5.4.10    Closing
Costs.  Seller shall pay the documentary stamp tax payable in
connection with the Deed, and all sales, use, gross receipts or similar taxes
payable in connection with the transactions contemplated in this Contract, the
cost of recording any instruments required to discharge any liens or
encumbrances against the Property not caused by Purchaser’s actions, title
examination charges, charges for the preparation of the Title Commitment and the
minimum risk rate premium for the Title Policy to the extent required by
Section 4.1, and one-half of
the customary closing costs of the Escrow Agent.  Purchaser shall pay any
premiums of fees required to be paid by Purchaser with respect to the Title
Policy pursuant to Section 4.1,
the cost of any update to the Survey obtained by Purchaser, all documentary
stamp tax applicable to any mortgage including, without limitation, the Assumed
Mortgage, and one-half of the customary closing costs of the Escrow Agent. 

5.4.11    Utility
Contracts.  If Seller has entered into an agreement for the
purchase of electricity, gas or other utility service for the Property or a
group of properties (including the Property) (a “Utility
Contract”), or an affiliate of Seller has entered into a Utility
Contract, then Seller shall assign and Purchaser shall assume the Utility
Contract with respect to the Property, and if required by the terms of such
Utility Contract, Purchaser shall attempt to obtain consent to such assignment
and assumption, and Purchaser shall hold harmless and, if requested by Seller
(in Seller’s sole discretion), defend (with counsel approved by Seller) Seller’s
Indemnified Parties from and against any and all Losses arising from or related
to Purchaser’s failure to obtain such consent.    

5.4.12   
Possession.  Possession of the Property, subject to
the Leases, Property Contracts, other than Terminated Contracts, and Permitted
Exceptions, shall be delivered to Purchaser at the Closing upon release from
escrow of all items to be delivered by Purchaser pursuant to
Section 5.2.11. 
To the extent reasonably available to Seller, originals or copies of the Leases
and Property Contracts, lease files, warranties, guaranties, operating manuals,
keys to the property, and Seller’s books and records (other than proprietary
information) (collectively, “Seller’s Property-Related Files and
Records”) regarding the Property shall be made available to Purchaser at
the Property after the Closing.  Purchaser agrees, for a period of up to
three (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 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 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. 

5.5             
Post Closing Adjustments.  Purchaser or Seller may
request that Purchaser and Seller undertake to re-adjust any item on the
Proration Schedule (or any item omitted therefrom), with the exception of real
property taxes which shall be final and not subject to readjustment, in
accordance with the provisions of Section 5.4 of this Contract; provided, however, that
neither party shall have any obligation to re-adjust any items (a) after
the expiration of 60 days after Closing, or (b) subject to such 60-day
period, unless such items exceed $5,000.00 in the aggregate.

5.6             
Capital Improvement Escrow.  Upon Closing Purchaser
shall establish an escrow account with Lender or another financial institution
(the “Capital Improvement Escrow”).  At Closing Seller will
cause $400,000 of the proceeds from the sale of the Property to be deposited
into the Capital Improvement Escrow.  The funds in the Capital Improvement
Escrow shall be used by Purchaser for capital improvements at the Property after
Closing.

Article
VI
REPRESENTATIONS AND WARRANTIES OF SELLER AND PURCHASER

6.1             
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, Seller represents and
warrants to Purchaser the following (collectively, the “Seller’s
Representations”) as of the Effective Date and as of the Closing Date;
provided that Purchaser’s remedies if any such Seller’s Representations are
untrue as of the Closing Date are limited to those set forth in
Section 8.1.

6.1.1       
Seller is validly existing and in good standing under the laws of the
state of its formation set forth in the initial paragraph of this Contract; and,
subject to Section 8.2.5
and any approvals required from Lender for the Loan Assumption and Release, has
or at the Closing 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 Contract, and the consummation of the transactions contemplated
by this Contract.  Seller is duly authorized to transact business and is in
good standing in the state of Florida.  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 Contract or on the
Property.  Subject to Section 8.2.5, this Contract is a valid and
binding agreement enforceable against Seller in accordance with its terms;

6.1.2       
Seller is not a “foreign person,” as that term is used and defined in the
Internal Revenue Code, Section 1445, as amended;

6.1.3       
Except for (a) any actions by Seller to evict Tenants under the Leases,
or (b) any matter covered by Seller’s current insurance policy(ies), to Seller’s
knowledge, there are no material actions, proceedings, litigation or
governmental investigations or condemnation actions either pending or threatened
in writing against the Property which will adversely impact Seller’s ability to
convey the Property;

6.1.4       
To Seller’s knowledge, Seller has not received any written notice of any
material default by Seller under any of the Property Contracts that will not be
terminated on the Closing Date;

6.1.5       
To Seller’s knowledge, the Rent Roll (as updated pursuant to
Section 5.2.9) is
accurate in all material respects;

6.1.6       
To Seller’s knowledge, the Property Contract List (as updated pursuant
Section 5.2.10) is accurate in all
material respects; 

6.1.7       
To Seller’s knowledge there are no lease brokerage agreements, leasing
commission agreements between Seller and any third party providing for payments
of any amounts for leasing activities or procuring tenants with respect to the
Property other than as disclosed on the Property Contracts List; 

6.1.8       
Seller has not received prior to the Effective Date any written
notification from any governmental or public authority that the Property is the
subject of any pending or, to Seller’s knowledge, threatened condemnation
proceedings; 

6.1.9       
To Seller’s knowledge, no persons employed by Seller with respect to the
Property are subject to any union or collective bargaining arrangements binding
on Seller;

6.1.10    Seller is not a
Prohibited Person;

6.1.11    To Seller’s
knowledge, except for third party persons who hold direct or indirect ownership
interests in Seller, none of Seller’s affiliates is a Prohibited Person;

6.1.12    To Seller’s
knowledge, 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; 

6.1.13    To Seller’s
knowledge, 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 by 18 U.S.C. § 1956(c)(7); and

6.1.14    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.

6.2             
AS-IS.  Except as otherwise expressly set forth in
Seller’s Representations:

6.2.1       
The Property is expressly purchased and sold “AS IS,” “WHERE IS,” and
“WITH ALL FAULTS.”  

6.2.2       
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, but is not relying upon, any information provided by
Seller or Broker or statements, representations or warranties, express or
implied, made by or enforceable directly against Seller or Broker, 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 conveying the Property and Seller’s Representations).  Purchaser
agrees that Seller shall not be responsible or liable to Purchaser for any
defects, errors or omissions in the Materials, or on account of any conditions
affecting the Property.  

6.2.3       
Purchaser, its successors and assigns, and anyone claiming by, through or
under Purchaser, hereby fully releases 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 Seller’s
Indemnified Parties with respect to any and all Losses arising from or related
to any defects, errors, omissions in the Materials or other conditions affecting
the Property.  

6.2.4       
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 Broker, Purchaser and Seller agree that Seller has done
so or shall do so only for the convenience of both 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 Seller’s Indemnified Parties.  Purchaser acknowledges and agrees
that 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. 

6.2.5       
Prior to Closing, Seller shall have the right, but not the obligation, to
enforce its rights against any and all 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
Contract 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 Contract.  

6.2.6       
Purchaser hereby releases Seller from any and all claims and liabilities
relating to the matters set forth in this Section.  

6.3             
Survival of Seller’s Representations.  Seller and
Purchaser agree that Seller’s Representations shall survive Closing for a period
of 6 months (the “Survival Period”).  Seller shall have no
liability after the Survival Period with respect to Seller’s Representations
contained herein except to the extent that Purchaser has given Seller written
notice of a claim by certified mail during the Survival Period specifically
identifying such breach of any of Seller’s Representations.  Under no
circumstances shall Seller be liable to Purchaser for more than $500,000 in any
individual instance or in the aggregate for all breaches of Seller’s
Representations, nor shall Purchaser 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 $5,000.  In
the event that Seller breaches any representation contained in
Section 6.1 and Purchaser
had knowledge of such breach prior to the Closing Date, and elected to close
regardless, Purchaser shall be deemed to have waived any right of recovery, and
Seller shall not have any liability in connection therewith.

6.4             
Definition of Seller’s Knowledge.  Any representations
and warranties made “to the knowledge of Seller” shall not be deemed to imply
any duty of inquiry.  For purposes of this Contract, the term Seller’s
“knowledge” shall mean and refer only to actual knowledge of the
Regional Property Manager and the Community Manager 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 such Regional Property Manager and Community Manager any duty to
investigate the matter to which such actual knowledge or the absence thereof
pertains, or to impose upon such Regional Property Manager and Community Manager
any individual personal liability.  As used herein, the term
“Regional Property Manager” shall refer to Kelly Shuffett who is
the regional property manager handling this Property and the term
“Community Manager” shall refer to Kathleen Higdon who is the
community manager handling this Property.  

6.5             
Representations and Warranties of Purchaser.  For the
purpose of inducing Seller to enter into this Contract 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:

6.5.1       
Purchaser is a limited liability company duly organized, validly existing
and in good standing under the laws of Iowa.

6.5.2       
Purchaser, acting through any of its or their 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 Contract, 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
Contract.  This Contract is a valid, binding and enforceable agreement
against Purchaser in accordance with its terms.

6.5.3       
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 Contract or would declare illegal, invalid or
non-binding any of Purchaser’s obligations or covenants to Seller.

6.5.4       
Other than Seller’s Representations, Purchaser has not relied on any
representation or warranty made by Seller or any representative of Seller
(including, without limitation, Broker) in connection with this Contract and the
acquisition of the Property.

6.5.5       
The Broker and its affiliates 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 13.3, acquires the
Property at the Closing), nor has Purchaser or any affiliate of 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.

6.5.6       
Purchaser is not a Prohibited Person.

6.5.7       
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 Contract is a Prohibited Person.

6.5.8       
The funds or other assets Purchaser will transfer to Seller under this
Contract are not the property of, or beneficially owned, directly or indirectly,
by a Prohibited Person. 

6.5.9       
The funds or other assets Purchaser will transfer to Seller under this
Contract are not the proceeds of specified unlawful activity as defined by 18
U.S.C. § 1956(c)(7).

Article VII
OPERATION OF THE PROPERTY

7.1             
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, without the prior written consent of
Purchaser, which consent shall not be unreasonably withheld, conditioned or
delayed, any new or renewed Leases shall not have a term in excess of 1 year and
any new Property Contract shall be terminable upon 30 days notice without
penalty.

7.2             
General Operation of Property.  Except as specifically
set forth in this Article VII,
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.  Provided that the
Closing occurs on the last Business Day of the calendar month, Seller agrees
that at the Closing (a) Seller will deliver to Purchaser the same number
(or less) of Tenant Units which were vacant and not in Rent-Ready Condition on
the date that the Feasibility Period expired, or (b) Purchaser shall
receive a credit against the Purchase Price in an amount equal to the product of
(i) the number of additional Tenant Units on the date of the Closing that
are vacant and not in Rent-Ready Condition in excess of the number of Tenant
Units that were vacant and not in Rent-Ready Condition on the date that the
Feasibility Period expired, and (ii) $750.00.

7.3             
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 7.1) unless
Purchaser approves such lien or encumbrance, which approval shall not be
unreasonably withheld, conditioned or delayed.  If Purchaser approves any
such subsequent lien or encumbrance, the same shall be deemed a Permitted
Encumbrance for all purposes hereunder.

7.4          
Tax Appeals.  If any tax reduction proceedings, tax
protest proceedings or tax assessment appeals for the Property, relating to any
fiscal years through and including fiscal year 2011, are pending at the time of
Closing, Seller reserves and shall have the right to continue to prosecute
and/or settle the same without the consent of Purchaser.  Seller hereby
reserves and shall have the exclusive right, at any time after the Closing Date,
to institute a tax reduction proceeding, tax protest proceeding or tax
assessment appeal for the Property with respect to real estate taxes
attributable to fiscal year 2011 and Seller shall have the right to prosecute
and/or settle the same without the consent of Purchaser.  Purchaser agrees
that it shall not independently institute any tax reduction proceedings, tax
protest proceedings, or tax assessment appeals for the Property with respect to
the 2011 tax year.  Purchaser shall cooperate with Seller in connection
with the prosecution and/or settlement of any such tax reduction proceedings,
tax protest proceedings or tax assessment appeals, including executing such
documents as Seller may reasonably request in order for Seller to prosecute
and/or settle any such proceedings.  Any refunds or savings in the payment
of taxes resulting from any tax reduction proceedings, tax protest proceedings
or tax assessment appeals applicable to the period prior to the Closing Date
shall belong to Seller and any refunds or savings in the payment of taxes
applicable to the period from and after the Closing Date shall belong to
Purchaser.  All attorneys’ fees and other expenses incurred in obtaining
such refunds or savings shall be apportioned between Seller and Purchaser in
proportion to the gross amount of such refunds or savings payable to
Seller and Purchaser, respectively.

Article VIII
CONDITIONS PRECEDENT TO CLOSING

8.1             
Purchaser’s Conditions to Closing.  Purchaser’s
obligation to close under this Contract shall be subject to and conditioned upon
the fulfillment of the following conditions precedent:

8.1.1       
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;

8.1.2       
Each of Seller’s Representations shall be true in all material respects
as of the Closing Date;

8.1.3       
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;

8.1.4       
Subject to Purchaser’s performance of its obligations under this
Contract, and provided that Purchaser is not in default under this Contract,
Escrow Agent shall be irrevocably and unconditionally committed to issue the
Title Policy to Purchaser, subject only to the Permitted Exceptions and the
satisfaction of the requirements to be satisfied by Purchaser under the Title
Commitment; and

8.1.5       
The Lenders shall consummate the Loan Assumption and Release in
accordance with the loan assumption terms required by the Lenders under
Section 4.5; provided, that
if the reason that the Lenders have not consummated the Loan Assumption and
Release is due to Purchaser’s acts or omissions or its failure, in whole or in
part, to comply with the terms of Section 4.5 hereof or Purchaser’s failure to have
timely executed and delivered all documents in accordance with
Sections 5.3.8 and 5.3.9, this condition shall be deemed
satisfied.

Notwithstanding
anything to the contrary, there are no other conditions to Purchaser’s
obligation to Close except as expressly set forth in this Section 8.1.  If any condition set forth in
this Section 8.1 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,
(b) terminate this Contract and receive a return of the Deposit from the
Escrow Agent, or (c) if such failure constitutes a default by Seller of its
covenants hereunder, exercise any of its remedies pursuant to Section 10.2.

8.2             
Seller’s Conditions to Closing.  Without limiting any
of the rights of Seller elsewhere provided for in this Contract, Seller’s
obligation to close with respect to conveyance of the Property under this
Contract shall be subject to and conditioned upon the fulfillment of the
following conditions precedent:

8.2.1       
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;

8.2.2       
Each of the representations, warranties and covenants of Purchaser
contained herein shall be true in all material respects as of the Closing
Date;

8.2.3       
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;

8.2.4       
Purchaser shall not be a debtor in any bankruptcy proceeding;

8.2.5       
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 13.18 (and the
amendment of Seller’s (or Seller’s affiliates’) partnership or other
organizational documents in connection therewith), (a) from Seller’s
partners, members, managers, shareholders or directors to the extent required by
Seller’s (or Seller’s affiliates’) organizational documents, and (b) as
required by law;

8.2.6       
There shall not be any pending litigation or, to the knowledge of either
Purchaser or Seller, any litigation threatened in writing, which, if adversely
determined, would restrain the consummation of any of the transactions
contemplated by this Contract or declare illegal, invalid or nonbinding any of
the covenants or obligations of the Purchaser; and

8.2.7       
The Loan Assumption and Release shall have occurred.

If
any of the foregoing conditions to Seller’s obligations to close with respect to
the conveyance of the Property under this Contract are not met, Seller may
(a) waive any of the foregoing conditions and proceed to Closing on the
Closing Date, (b) terminate this Contract, or (c) if such failure
constitutes a default by Purchaser, exercise any of its remedies pursuant to
Section 10.1.  If Seller
terminates this Contract because of the failure of the condition set forth in
Section 8.2.5, then Seller
shall reimburse Purchaser for its actual out-of-pocket expenses incurred through
the date of such termination in connection with the transaction contemplated by
this Contract (in no event, to exceed $50,000) and Purchaser shall deliver to
Seller copies of any and all third-party reports prepared for Purchaser related
thereto; provided, however, that if such failure constitutes a default by
Purchaser, Seller shall not be required to reimburse Purchaser.

Article
IX
BROKERAGE

9.1             
Indemnity.  Seller represents and warrants to
Purchaser that it has dealt only with Walchle Lear Multifamily Advisors, 1506
Roberts Drive, Jacksonville Beach, Florida 32250 (“Broker”) in
connection with this Contract.  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 Contract, 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.  

9.2             
Broker Commission.  If Closing occurs, Seller agrees
to pay Broker a commission according to the terms of a separate contract. 
Broker shall not be deemed a party or third party beneficiary of this
Contract.  As a condition to Seller’s obligation to pay the commission, Broker shall execute the signature page for
Broker attached hereto solely for purposes of confirming the matters set forth
therein.

Article
X
DEFAULTS AND REMEDIES

10.1         
Purchaser Default.  If Purchaser defaults on its
obligations hereunder to (a) deliver the Initial Deposit or Additional
Deposit (or any other deposit or payment required of Purchaser hereunder),
(b) deliver to Seller the deliveries specified under
Section 5.2.11 on the
date required thereunder, or (c) deliver the Purchase Price in accordance
with Article II and close on the purchase of the Property on the Closing Date,
then, immediately and without the right to receive notice or to cure pursuant to
Section 2.2.3, Purchaser
shall forfeit the Deposit, and the Escrow Agent shall deliver the Deposit to
Seller, and neither party shall be obligated to proceed with the purchase and
sale of the Property.  If Purchaser defaults on any of its other
representations, warranties or obligations under this Contract, and such default
continues for more than 10 days after written notice from Seller, then Purchaser
shall forfeit the Deposit, and the Escrow Agent shall deliver the Deposit to
Seller, and neither party shall be obligated to proceed with the purchase and
sale of the Property.  The Deposit is 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 breach of a representation or
warranty.  Seller expressly waives the remedies of specific performance and
additional damages for such default by Purchaser.  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 10.1 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
CONTRACT, OTHER THAN WITH RESPECT TO PURCHASER’S INDEMNITY AND CONFIDENTIALITY
OBLIGATIONS HEREUNDER.

10.2         
Seller Default.  If Seller (i) defaults on its
obligations hereunder to deliver to Escrow Agent the deliveries specified under
Section 5.2 on the date
required thereunder, or to close on the sale of the Property on the Closing
Date, or (ii) prior to the Closing defaults on its covenants or obligations
under this Contract and such default continues for more than 10 days after
written notice from Purchaser, then, at Purchaser’s election and as Purchaser’s
exclusive remedy, Purchaser may either (a) terminate this Contract, 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 the aggregate, or (b) subject to the
conditions below, seek specific performance of Seller’s obligation to close on
the sale of the Property pursuant to this Contract (but not damages). 
Purchaser may seek specific performance of Seller’s obligation to close on the sale of the Property pursuant to this Contract only if,
as a condition precedent to initiating such litigation for specific performance,
Purchaser shall (x) not otherwise be in default under this Contract; and
(y) 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 10.2 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
CONTRACT.  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 CONTRACT.  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 CONTRACT AND HAS FILED AND IS DILIGENTLY PURSUING AN ACTION
SEEKING SUCH REMEDY AND HAS POSTED A BOND IN THE AMOUNT DETERMINED BY THE
COURT.

Article
XI
RISK OF LOSS OR CASUALTY

11.1         
Major Damage.  In the event that the Property is
damaged or destroyed by fire or other casualty prior to Risk of Loss Transfer,
and the cost for demolition, site cleaning, restoration, replacement, or other
repairs (collectively, the “Repairs”) is more than $750,000.00 (a
“Major Damage”), then Seller shall have no obligation to make such
Repairs, and shall notify Purchaser in writing of such damage or destruction
(the “Damage Notice”).  If there is a Major Damage, then
Purchaser may elect, by delivering written notice to Seller on or before the
earlier of (x) Closing and (y) the date which is ten (10) days after
Purchaser’s receipt of the Damage Notice, to terminate this Contract, in which
event the Deposit shall be returned to Purchaser.  In the event Purchaser
fails to timely terminate this Contract pursuant to this Section 11.1, this transaction shall be closed in
accordance with Section 11.3
below.

11.2         
Minor Damage.  In the event that the Property is
damaged or destroyed by fire or other casualty prior to Risk of Loss Transfer,
and the cost of Repairs is equal to or less than $750,000.00, then this
transaction shall be closed in accordance with Section 11.3, notwithstanding such casualty.  In
such event, Seller may at its election endeavor to make such Repairs to the
extent of any recovery from insurance carried on the Property, if such Repairs
can be reasonably effected before the Closing.  Regardless of Seller’s
election to commence such Repairs, or Seller’s ability to complete such Repairs
prior to Closing, this transaction shall be closed in accordance with
Section 11.3 below. 

11.3         
Closing.  In the event Purchaser fails to terminate
this Contract following a casualty as set forth in Section 11.1, or in the event of a casualty as
set forth in Section 11.2,
then this transaction shall be closed in accordance with the terms of the
Contract, at Seller’s election, either (i) for the full Purchase Price,
notwithstanding any such casualty, in which case Purchaser and Seller 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 related to such casualty, and thereafter Purchaser shall receive
all insurance proceeds pertaining to such claim, less any amounts which may
already have been spent by Seller for Repairs (plus a credit against the
Purchase Price at Closing in the amount of any deductible payable by Seller in
connection therewith); or (ii) for the full Purchase Price less a credit to
Purchaser in the amount necessary to complete such Repairs as determined by a
third party contractor selected by Seller and reasonably acceptable to Purchaser
(less any amounts which may already have been spent by Seller for Repairs).

11.4         
Repairs.  To the extent that Seller elects to commence
any Repairs prior to Closing, then Seller shall be entitled to receive and apply
available insurance proceeds to any portion of such Repairs completed or
installed prior to Closing, with Purchaser being responsible for completion of
such Repairs after Closing.  To the extent that any Repairs have been
commenced prior to Closing, then the Property Contracts shall include, and
Purchaser shall assume at Closing, all construction and other contracts entered
into by Seller in connection with such Repairs; provided, however, that (except
in the event of emergency, as determined in Seller’s sole discretion) Seller
will consult with Purchaser prior to entering into any such contract if
Purchaser will likely have to assume such Contract.  Notwithstanding the
foregoing to the contrary, Seller retains the sole right and authority to enter
into any such contract.

Article
XII
EMINENT DOMAIN

12.1         
Eminent Domain.  In the event that, 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 terminate
this Contract by giving written notice within 10 days after Purchaser’s receipt
from Seller of notice of the occurrence of such event, and if Purchaser so
terminates this Contract, Purchaser shall recover the Deposit hereunder. 
If Purchaser fails to terminate this Contract within such 10-day period, this
transaction shall be closed in accordance with the terms of this Contract for
the full Purchase Price and Purchaser shall receive the full benefit of any
condemnation award.

Article
XIII
MISCELLANEOUS

13.1         
Binding Effect of Contract.  This Contract shall not
be binding on either party until executed by both Purchaser and Seller. 
Neither the Escrow Agent’s nor the Broker’s execution of this Contract shall be
a prerequisite to its effectiveness.  Subject to Section 13.3, this Contract shall be binding upon and
inure to the benefit of Seller and Purchaser, and their respective successors
and permitted assigns.

13.2         
Exhibits and Schedules.  All Exhibits and Schedules,
whether or not annexed hereto, are a part of this Contract for all purposes.

13.3         
Assignability.  Except to the extent required to
comply with the provisions of Section 13.18 related to a 1031 Exchange, this
Contract is not assignable by Purchaser without first obtaining the prior
written approval of Seller.  Notwithstanding the foregoing, Purchaser may
assign this Contract, without first obtaining the prior written approval of
Seller, to one or more entities so long as (a) Purchaser is an affiliate of
the purchasing entity(ies), (b) Purchaser is not released from its
liability hereunder, and (c) Purchaser provides written notice to Seller of
any proposed assignment no later than 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.

13.4         
Captions.  The captions, headings, and arrangements
used in this Contract are for convenience only and do not in any way affect,
limit, amplify, or modify the terms and provisions hereof.

13.5         
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.

13.6         
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 or registered mail, return receipt
requested; or (d) sent by confirmed facsimile transmission or electronic
delivery with an original copy thereof transmitted to the recipient by one of
the means described in subsections (a) through (c) no later than 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, and, if the notice was transmitted by
facsimile, notice shall be deemed given upon generation of a satisfactory
transmission report by the transmitting machine.  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:

To
Purchaser:

 

BHE
Acquisitions, L.L.C.

400
Locust Street, Suite 790
Des Moines, Iowa  50309

Attention: 
Harry Bookey and Nick Roby, Esq.
Telephone (Harry): (515) 244-2622, ext.
1213

Telephone (Nick):  (515) 244-2622, ext. 1275

Facsimile:
(515) 244-2742
Email: hbookey@bhmanagement.com,
nroby@bhequities.com

 

and:

 

Pensam
Capital
777 Brickell Avenue, Suite 1200
Miami, Florida
 33131
Attention:  Michael Stein
Telephone: (786)
539-4999
Facsimile: (786) 513-0800

Email:
mstein@pensamcapital.com

 

with
copy to:

 

Davis,
Brown, Koehn, Shors & Roberts, P.C.
215 10th Street,
Suite 1300

Des
Moines, Iowa  50309

Attention: 
Gary M. Myers, Esq.

Telephone: 
(515) 246‐7837

Facsimile: 
(515) 243-0654

Email: 
garymyers@davisbrownlaw.com

 

To
Seller:

 

National
Property Investors 5

c/o
AIMCO

4582
South Ulster Street Parkway 

Suite
1100

Denver,
Colorado  80237

Attention: 
Mark Reoch

Telephone: 
(303) 691-4337

Facsimile: 
(303) 300-3261

Email: 
mark.reoch@aimco.com

 

and:

 

National
Property Investors 5

c/o
AIMCO

4582
South Ulster Street Parkway 

Suite
1100

Denver,
Colorado  80237

Attention: 
John Bezzant

Telephone:
(303) 691-4344

Facsimile: 
(303) 300-3282

Email: 
john.bezzant@aimco.com

 

with
copy to:

 

AIMCO

4582
South Ulster Street Parkway 

Suite
1100

Denver,
Colorado  80237

Attention: 
Trent Johnson, Esq.

Telephone:
 (303) 691-4348

Facsimile: 
(720) 300-3260

Email: 
trent.johnson@aimco.com

 

AIMCO

4582
South Ulster Street Parkway 

Suite
1100

Denver,
Colorado  80237

Attention: 
Ken Diamond, Esq.

Telephone: 
(303) 691-4763

Facsimile: 
(720) 200-6881

Email: 
ken.diamond@aimco.com

 

and
a copy to:

 

Walchle
Lear Multifamily Advisors

1506
Roberts Drive

Jacksonville
Beach, Florida  32250

Attention: 
Stephen D. Lear

Telephone: 
(904) 241-7600 ext. 202

Email: 
steve@multifamilybrokers.com

 

and a copy to:

 

Kutak
Rock LLP

1801
California Street

Suite
3100

Denver,
Colorado  80202

Attention: 
Stephen J. Ismert, Esq.

Telephone:
 (303) 297-2400

Facsimile:
 (303) 292-7799

Email: 
stephen.ismert@kutakrock.com

 

Any
notice required hereunder to be delivered to the Escrow Agent shall be delivered
in accordance with above provisions as follows:

First
American Title Insurance Company of New York

633
Third Avenue

New
York, New York  10017

Attention: 
Linda J. Isaacson

Telephone: 
(212) 850-0664
Facsimile:  (212) 331-1467

Email: 
LIsaacson@firstam.com

 

 

Unless
specifically required to be delivered to the Escrow Agent pursuant to the terms
of this Contract, no notice hereunder must be delivered to the Escrow Agent in
order to be effective so long as it is delivered to the other party in
accordance with the above provisions.

13.7         
Governing Law and Venue.  The laws of the State of
Florida shall govern the validity, construction, enforcement, and interpretation
of this Contract, unless otherwise specified herein except for the conflict of
laws provisions thereof.  All claims, disputes and other matters in
question arising out of or relating to this Contract, or the breach thereof,
shall be decided by proceedings instituted and litigated in a court of competent
jurisdiction in the state in which the Property is situated, and the parties
hereto expressly consent to the venue and jurisdiction of such court.

13.8         
Entire Agreement.  This Contract embodies the entire
Contract between the parties hereto concerning the subject matter hereof and
supersedes all prior conversations, proposals, negotiations, understandings and
contracts, whether written or oral.

13.9         
Amendments.  This Contract 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,
(a) the signature of the Escrow Agent shall not be required as to any
amendment of this Contract other than an amendment of Section 2.3, and (b) the signature of the Broker
shall not be required as to any amendment of this Contract.

13.10     
Severability.  In the event that any part of this
Contract 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 Contract and
the remaining portions of this Contract shall be valid and enforceable.

13.11     
Multiple Counterparts/Facsimile Signatures.  This
Contract may be executed in a number of identical counterparts.  This
Contract may be executed by facsimile signatures or electronic delivery of
signatures which shall be binding on the parties hereto, with original
signatures to be delivered as soon as reasonably practical thereafter.

13.12     
Construction.  No provision of this Contract shall be
construed in favor of, or against, any particular party by reason of any
presumption with respect to the drafting of this Contract; both parties, being
represented by counsel, having fully participated in the negotiation of this
instrument.

13.13     
Confidentiality.  Seller and Purchaser shall not
disclose the terms and conditions contained in this Contract and shall keep the
same confidential, provided that each may disclose the terms and conditions of
this Contract (a) as required by law, (b) to consummate the terms of
this Contract, or any financing relating thereto, or (c) to its lenders,
attorneys and accountants.  Furthermore, Seller may disclose the terms and
conditions of this Contract as is necessary, in Seller’s sole discretion, in
order for Seller to fulfill the conditions set forth in
Section 8.2.5,
and to make any public disclosures required under federal or state securities
laws or regulations.  Any information obtained by Purchaser in the course
of its inspection of the Property, and any Materials provided by Seller to
Purchaser hereunder, shall be confidential and Purchaser shall be prohibited
from making such information public to any other person or entity other than its
Consultants, without Seller’s prior written authorization, which may be granted
or denied in Seller’s sole discretion.  In addition, each party shall use
its reasonable efforts to prevent its Consultants from divulging any such
confidential information to any unrelated third parties except for the limited
purpose of analyzing and investigating such information for the purpose of
consummating the transaction contemplated by this Contract.  Unless and
until the Closing occurs, Purchaser shall not market the Property (or any
portion thereof) to any prospective purchaser or lessee without the prior
written consent of Seller, which consent may be withheld in Seller’s sole
discretion.

13.14     
Time of the Essence.  It is expressly agreed by the
parties hereto that time is of the essence with respect to this Contract and any
aspect thereof.

13.15     
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 Contract shall be established by conduct, custom, or course of dealing and
all waivers must be in writing and signed by the waiving party.

13.16     
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.

13.17     
Time Zone/Time Periods.  Any reference in this
Contract to a specific time shall refer to the time in the time zone where the
Property is located.  (For example, a reference to 3:00 p.m. refers to 3:00
p.m. MST if the Property is located in Denver, Colorado.)  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.

13.18     
1031 Exchange.  Seller and Purchaser acknowledge and
agree that the purchase and sale of the Property may be part of a tax-free
exchange for either Purchaser or Seller pursuant to Section 1031 of the Code,
the regulations promulgated thereunder, revenue procedures, pronouncements and
other guidance issued by the Internal Revenue Service.  Each party hereby
agrees to cooperate with each other and 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 Contract, (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 Contract will be extended as
a result thereof, except as specifically provided herein.  Notwithstanding
anything in this Section 13.18 to the contrary, Seller shall have
the right to extend the Closing Date (as extended pursuant to the second or
third sentences of Section 5.1)
for up to 30 days in order to facilitate a tax free exchange pursuant to this
Section 13.18, and to obtain
all documentation in connection therewith.

13.19     
No Personal Liability of Officers, Trustees or
Directors.  Purchaser acknowledges that this Contract is entered
into by Seller which is a California limited partnership, and Purchaser agrees
that none of Seller’s Indemnified Parties shall have any personal liability
under this Contract or any document executed in connection with the transactions
contemplated by this Contract.  Seller acknowledges that this Contract is
entered into by Purchaser which is an Iowa limited liability company and Seller
agrees that none of Purchaser, or Purchaser’s partners, managers, members,
employees, officers, directors, trustees, shareholders, counsel,
representatives, or agents shall have any personal liability under this Contract
or any document executed in connection with the transactions contemplated by
this Contract.

13.20     
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 the
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 representations.

13.21     
No Recording.  Purchaser shall not cause or allow this
Contract or any contract or other document related hereto, nor any memorandum or
other evidence hereof, to be recorded or become a public record without Seller’s
prior written consent, which consent may be withheld at Seller’s sole
discretion.  If Purchaser records this Contract or any other memorandum or
evidence thereof, Purchaser shall be in default of its obligations under this
Contract.  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.

13.22     
Relationship of Parties.  Purchaser and Seller
acknowledge and agree that the relationship established between the parties
pursuant to this Contract 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.

13.23     
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 Contract.  Purchaser further
agrees that Purchaser will not use the AIMCO Marks for any purpose.

13.24     
Non-Solicitation of Employees.  Prior to the
expiration of the Feasibility Period, Purchaser acknowledges and agrees that,
without the express written consent of Seller, neither Purchaser nor any of
Purchaser’s employees, affiliates or agents shall solicit any of Seller’s
employees or any employees located at the Property (or any of Seller’s
affiliates’ employees located at any property owned by such affiliates) for
potential employment.

13.25     
Survival.  Except for (a) all of the provisions
of this Article XIII (other than Section 13.18); (b) Sections 2.3, 3.3, 3.4, 3.5, 4.5.5, 4.5.6, 5.4, 5.5, 6.2, 6.3, 6.5, 9.1, 11.4, and 14.2; (c) any other provisions in
this Contract, that by their express terms survive the termination of this
Contract or the Closing; and (d) any payment or indemnity obligation of
Purchaser under this Contract (the foregoing (a), (b), (c) and (d) referred
to herein as the “Survival Provisions”), none of the terms and
provisions of this Contract shall survive the termination of this Contract, and
if the Contract is not so terminated, all of the terms and provisions of this
Contract (other than the Survival Provisions, which shall survive the Closing)
shall be merged into the Closing documents and shall not survive Closing. 

13.26     
Multiple Purchasers.  As used in this Contract, the
term “Purchaser” includes all entities acquiring any interest in
the Property at the Closing, including, without limitation, any assignee(s) of
the original Purchaser pursuant to Section 13.3 of this Contract.  In the event
that “Purchaser” has any obligations or makes any covenants, representations or
warranties under this Contract, the same shall be made jointly and severally by
all entities being a Purchaser hereunder.  

13.27     
WAIVER OF JURY TRIAL.  THE PARTIES HERETO WAIVE TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY ON ANY MATTER ARISING OUT OF
OR IN ANY WAY CONNECTED WITH THIS CONTRACT

13.28     
Radon Notice.  Radon is a naturally occurring
radioactive gas that, when it has accumulated in a building in sufficient
quantities, may present health risk to persons who are exposed to it over
time.  Levels of radon that exceed the Federal and State Guidelines have
been found in buildings in Florida.  Additional information regarding radon
and radon testing may be obtained from your county public health unit.

Article
XIV
LEAD–BASED PAINT DISCLOSURE

14.1         
Disclosure.  Seller and Purchaser hereby acknowledge
delivery of the Lead Based Paint Disclosure attached as Exhibit H
hereto.  

14.2         
Consent Agreement.

           
Testing (the “Testing”) has been performed at the Property with
respect to lead-based paint.  TRC/Environomics performed the Testing and
reported its findings in the report dated September 4, 2006, a copy of which has
been provided to Purchaser (the “Report”).  The Report
certifies the Property as lead-based paint free.  By execution hereof,
Purchaser acknowledges receipt of a copy of the Report, the Lead-Based Paint
Disclosure Statement attached hereto as Exhibit H, and acknowledges
receipt of that certain Consent Agreement (the “Consent
Agreement”) by and among the United States Environmental Protection
Agency (executed December 19, 2001), the United States Department of Housing and
Urban Development (executed January 2, 2002), and AIMCO (executed December 18,
2001).  Because the Property has been certified as lead-based paint free,
Seller is not required under the Consent Agreement to remediate or abate any
lead-based paint condition at the Property prior to the Closing.  Purchaser
acknowledges and agrees that (1) after Closing, Purchaser and the Property
shall be subject to the Consent Agreement and the provisions contained herein
related thereto and (2) that Purchaser shall not be deemed to be a third
party beneficiary to the Consent Agreement.  

 

 

[Remainder of Page Intentionally Left Blank]

NOW, THEREFORE, the parties hereto have executed this
Contract as of the date first set forth above.

 

Seller:

 

NATIONAL
PROPERTY INVESTORS 5,

     
a California limited partnership

 

     
By: NPI EQUITY INVESTMENTS, INC.,

            
a Florida corporation,

            
its general partner

 

 

 

By: 
/s/Trent A. Johnson

Name: 
Trent A. Johnson

Title: 
Vice President

 

 

Purchaser:

 

BHE
ACQUISITIONS, L.L.C.,

an
Iowa limited liability company

 

By: 
/s/Nicholas H. Roby

Name: 
Nicholas H. Roby

Title: 
Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]