Document:

EX-10.13

 Exhibit 10.13 

 
  

 
 Aimco REIT Sub, LLC 

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

 
 Mezzanine
Note Agreement 
  
  

Dated as of             , 2020 

 
  

 

 Table of Contents 

 

							
	 	  	Page	 
	 Section 1.
	 	Authorization of Notes	  	 	1	 
			
	 Section 2.
	 	Transfer and Issuance of Notes	  	 	1	 
			
	 Section 3.
	 	Closing	  	 	1	 
			
	 Section 4.
	 	Deliverables at Closing	  	 	1	 
	 Section 4.1.
	 	 Delivery of Transferred Interests
	  	 	1	 
	 Section 4.2.
	 	 Pledge Agreement and Collateral
	  	 	2	 
	 Section 4.3.
	 	 James Oxford Operating Agreement
	  	 	2	 
			
	 Section 5.
	 	Representations and Warranties of the Company	  	 	2	 
	 Section 5.1.
	 	 Organization; Power and Authority
	  	 	2	 
	 Section 5.2.
	 	 Authorization, Etc.
	  	 	2	 
	 Section 5.3.
	 	 Organization and Ownership of Shares of Certain Subsidiaries
	  	 	2	 
	 Section 5.4.
	 	 REIT Representations
	  	 	3	 
	 Section 5.5.
	 	 Title to Property
	  	 	3	 
	 Section 5.6.
	 	 Existing Indebtedness; Restrictions on Indebtedness and Liens
	  	 	3	 
			
	 Section 6.
	 	Notices From the Company	  	 	3	 
			
	 Section 7.
	 	Payment and Prepayment of the Notes	  	 	4	 
	 Section 7.1.
	 	 Maturity; Payment of Interest
	  	 	4	 
	 Section 7.2.
	 	 Mandatory Prepayments
	  	 	4	 
	 Section 7.3.
	 	 Optional Prepayments
	  	 	5	 
	 Section 7.4.
	 	 Allocation of Partial Prepayments
	  	 	5	 
	 Section 7.5.
	 	 Maturity; Surrender, Interest on Prepayments, Etc.
	  	 	5	 
	 Section 7.6.
	 	 Payments Due on Non-Business Days
	  	 	5	 
	 Section 7.7.
	 	 Late Charges
	  	 	5	 
			
	 Section 8.
	 	Affirmative Covenants	  	 	6	 
	 Section 8.1.
	 	 Existence, Etc.
	  	 	6	 
	 Section 8.2.
	 	 REIT Covenants
	  	 	6	 
	 Section 8.3.
	 	 Maintenance of Properties
	  	 	6	 
	 Section 8.4.
	 	 Maintenance of Insurance
	  	 	6	 
	 Section 8.5.
	 	 Compliance with Laws
	  	 	6	 
	 Section 8.6.
	 	 Compliance with Mortgage Loan Documents
	  	 	7	 
			
	 Section 9.
	 	Negative Covenants	  	 	7	 
	 Section 9.1.
	 	 Merger, Consolidation, Etc.
	  	 	7	 
	 Section 9.2.
	 	 Liens
	  	 	7	 
	 Section 9.3.
	 	 Indebtedness
	  	 	8	 
	 Section 9.4.
	 	 Dispositions
	  	 	9	 
	 Section 9.5.
	 	 Sale and Leaseback Transactions
	  	 	9	 
	 Section 9.6.
	 	 Change in Nature of Business
	  	 	10	 

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

  
 ii 

									
	 Schedules
	  				  	
			
	 Schedule A
	  	 	—	 	  	 Defined Terms

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

			
	 Schedule 2
	  	 	—	 	  	 Equity Interests Exchanged for Notes

			
	 Schedule 5.3
	  	 	—	 	  	 James Oxford Subsidiaries

			
	 Schedule 5.6
	  	 	—	 	  	 Existing Indebtedness

			
	 Purchaser Schedule
	  	 	—	 	  	 Information Relating to Purchasers

  

  
 iii 

 AIMCO REIT SUB, LLC 

4582 South Ulster Street, Suite 1400 

Denver, Colorado 80237 

5.2% Secured Mezzanine Notes due January 31, 2024 

As of             , 2020 

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

Aimco REIT Sub, LLC, a Delaware limited liability company (the “Company”), agrees with each of the Purchasers as follows:

 Section 1.    Authorization of Notes. The Company has authorized the issue of
$534,127,075 aggregate principal amount of its 5.2% Secured Mezzanine Notes due January 31, 2024 (the “Notes”) in exchange for the Equity Interests in James Oxford described on Schedule 2. The Notes shall be substantially in
the form set out in Schedule 1. Certain capitalized and other terms used in this Agreement are defined in Schedule A and, for purposes of this Agreement, the rules of construction set forth in Section 18.4 shall govern. 

Section 2.    Transfer and Issuance of Notes. Subject to the terms and conditions
of this Agreement, the Company will issue to each Purchaser, in exchange for the Equity Interests transferred from each Purchaser to the Company as listed on Schedule 2 (such Equity Interests, the “Transferred Interests”), at the
Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser’s name in the Purchaser Schedule. The Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall
have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder. 

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

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

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

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

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

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

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

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

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

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

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

  
 2 

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

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

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

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

Section 6.    Notices From the Company. The Company shall deliver to each holder
of a Note promptly, and in any event within 15 Business Days (or 10 Business Days in the case of (x) a merger or consolidation of the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary or (y) a Change of Control)
after a Responsible Officer becoming aware of the existence of any (i) Default or Event of Default, (ii) default or event of default under any document evidencing Indebtedness for borrowed money secured by a mortgage, deed of trust,
assignment of rents or other security interest on any Specified Property or of the Equity Interests in any Person that owns, directly or indirectly, any Specified Property, (iii) Disposition of any Specified Property, (iv) Casualty or
Condemnation Event with respect to any Specified Property, (v) merger or consolidation of the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary, (vi) Change of Control or (vii) incurrence of Indebtedness
that gives rise to a prepayment pursuant to Section 7.2(d), written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto. 

  
 3 

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

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

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

Section 7.2.    Mandatory Prepayments. 

(a)    Promptly, and in any event within 15 Business Days, following the Disposition (other than a Casualty or Condemnation
Event) of all or any portion of Specified Property or all or any portion of the Equity Interests in James Oxford, any James Oxford Entity or any James Oxford Subsidiary (whether in a single transaction or series of related transactions), the Company
shall prepay the Notes in an amount equal to the Net Cash Proceeds of such Disposition. In the event of a Casualty or Condemnation Event, promptly, and in any event within 15 Business Days, following the receipt by the Company, James Oxford, any
James Oxford Entity or any James Oxford Subsidiary of Net Insurance/Condemnation Proceeds stemming from such Casualty or Condemnation Event, the Company shall prepay the Notes in an amount equal to such Net Insurance/Condemnation Proceeds;
provided that no such prepayment shall be required so long as (i) no Default or Event of Default has occurred and is continuing, (ii) within 10 Business Days of receipt of such Net Insurance/Condemnation Proceeds the Company
delivers a certificate to the Purchasers certifying as to its intent to repair, rebuild or replace such asset and that it has sufficient cash or other sources of liquidity to do so, and (iii) such repair, rebuild or replacement is completed
within one year from the date such Net Insurance/Condemnation Proceeds are received by the Company, James Oxford, such James Oxford Entity or such James Oxford Subsidiary. 

(b)    Promptly, and in any event within 10 Business Days, following the merger or consolidation of the Company, James
Oxford, any James Oxford Entity or any James Oxford Subsidiary (whether in a single transaction or series of related transactions), the Company shall prepay the Notes in an amount equal to the Net Cash Proceeds received by the Company, James Oxford,
any James Oxford Entity or any James Oxford Subsidiary in connection with such merger or consolidation. 
 (c)    Within
10 Business Days following a Change of Control effected without the prior written consent of the Required Holders, the Company shall prepay the Notes in an amount equal to the aggregate principal amount of the Notes then outstanding. 

(d)    Promptly, and in any event within 15 Business Days, following the incurrence of any Indebtedness pursuant to
Section 9.3(b)(ii) or any Indebtedness not permitted by Section 9.3 of this 

  
 4 

 
Agreement by the Company, James Oxford, any James Oxford Entity or any James Oxford Subsidiary, the Company shall prepay the Notes in an amount equal to the Net Cash Proceeds of such
Indebtedness. In addition, if any Indebtedness is incurred pursuant to Section 9.3(b)(i) of this Agreement in an amount that exceeds the Indebtedness being refinanced thereby (and any reasonable premiums and other reasonable amounts paid,
including accrued and unpaid interest and any fees and expenses reasonably incurred in connection with such refinancing), the Company shall prepay the Notes in an amount equal to such excess. 

Section 7.3.    Optional Prepayments. The Company may, at its option, upon notice as provided below, prepay at
any time all, or from time to time any part of, the Notes at 100% of the principal amount so prepaid, without premium or penalty. The Company will give each holder of Notes written notice of each optional prepayment under this Section 7.3 not
less than 3 days and not more than 60 days prior to the date fixed for such prepayment unless the Company and the Required Holders agree to another time period pursuant to Section 16. Each such notice shall specify such date (which shall be a
Business Day), the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 7.4), and the interest to be paid on the
prepayment date with respect to such principal amount being prepaid. Any notice delivered pursuant to this Section 7.3 may be conditioned upon the effectiveness of other credit facilities or the receipt of proceeds or the issuance of debt or
the occurrence of any other transaction, in which case, such notice may be revoked if such other credit facilities do not become effective, such proceeds are not received, such debt is not issued or such other transaction is not consummated. 

Section 7.4.    Allocation of Partial Prepayments. In the case of each partial prepayment of the Notes
pursuant to Section 7.2 or Section 7.3, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts
thereof not theretofore called for prepayment. 
 Section 7.5.    Maturity; Surrender, Interest on Prepayments,
Etc. Each prepayment of Notes made pursuant to this Section 7 shall be without premium or penalty and shall be accompanied by all accrued and unpaid interest in the amount so prepaid. In the case of each such prepayment, the
principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (subject to revocation or deferral in the case of a conditional notice of prepayment), together with interest on such principal
amount accrued to such date. Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note. 

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

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

  
 5 

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

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

Section 8.2.    REIT Covenants. 

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

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

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

  
 6 

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

Section 9.    Negative Covenants. The Company covenants that so long as any of the
Notes are outstanding: 
 Section 9.1.    Merger, Consolidation, Etc. The Company will not and will
not permit James Oxford, any James Oxford Entity or any James Oxford Subsidiary to consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions
to any Person, consummate a Division as the Dividing Person, or liquidate or dissolve, unless: 
 (a)    (x) the
Company, James Oxford, such James Oxford Entity or such James Oxford Subsidiary (1) receives consideration (A) at least equal to the fair market value (such fair market value to be determined (i) on the date of contractually agreeing
to such merger, consolidation or other transaction and (ii) in good faith by the Company), of the Company, James Oxford, such James Oxford Entity or such James Oxford Subsidiary, as applicable, which such fair market value shall be a positive
number, and (B) that is 100% in the form of cash; provided that for purposes of determining “cash” consideration, any assumption of Indebtedness or other liabilities by buyer shall be deemed cash consideration, so long as
seller is released from such Indebtedness or other liabilities, and (2) prepays or causes to be prepaid the Notes in an amount equal to the Net Cash Proceeds of such merger, consolidation or other transaction in accordance with Section 7.2
of this Agreement and (y) immediately before and immediately after giving effect to such transaction or each transaction in any such series of transactions, no Default or Event of Default shall have occurred and be continuing; or 

(b)    the Required Holders consent to such consolidation, merger, or other transaction, such consent not to be
unreasonably withheld or delayed. 
 No such Disposition of assets or property shall have the effect of releasing the Company or any
successor corporation, limited partnership, limited liability company or other entity that shall theretofore have become such in the manner prescribed in this Section 9.1, from its liability under the Note Documentation. 

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

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

  
 7 

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

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

(ii)    Liens securing Indebtedness permitted pursuant to Section 9.3(b)(ii); 

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

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

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

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

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

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

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

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

  
 8 

 
such Indebtedness is increased at the time of such refinancing, refunding, renewal or extension, the Company prepays or causes to be prepaid the Notes in an amount equal to such increase in
accordance with Section 7.2 of this Agreement, except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any
existing commitments unutilized thereunder; 
 (ii)    (A) secured or unsecured mezzanine Indebtedness,
provided that the Company shall prepay or cause to be prepaid the Notes in an amount equal to the Net Cash Proceeds of such Indebtedness in accordance with Section 7.2 of this Agreement, or (B) Indebtedness secured by a lien on
Equity Interests or a mortgage on currently unencumbered real property, including one or more Specified Properties, not outstanding on the date hereof; provided that the Company shall prepay or cause to be prepaid the Notes in an amount equal
to the Net Cash Proceeds of such Indebtedness in accordance with Section 7.2 of this Agreement; and 

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

(a)    with respect to any Casualty or Condemnation Event, the Company, James Oxford, such James Oxford Entity or such
James Oxford Subsidiary prepays or causes to be prepaid the Notes in an amount equal to the Net Insurance/Condemnation Proceeds stemming from such Casualty or Condemnation Event in accordance with Section 7.2 of this Agreement; 

(b)    the Company, James Oxford, such James Oxford Entity or such James Oxford Subsidiary (1) receives consideration
(A) at least equal to the fair market value (such fair market value to be determined (i) on the date of contractually agreeing to such Disposition and (ii) in good faith by the Company), of the property subject to such Disposition and
(B) that is 100% in the form of cash; provided that for purposes of determining “cash” consideration, any assumption of Indebtedness or other liabilities by buyer shall be deemed cash consideration, so long as seller is
released from such Indebtedness or other liabilities, and (2) prepays or causes to be prepaid the Notes in an amount equal to the Net Cash Proceeds of such Disposition in accordance with Section 7.2 of this Agreement; or 

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

  
 9 

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

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

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

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

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

  
 10 

 Section 11.    Remedies on Default, Etc. 

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

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

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

(d)    Upon any Notes becoming due and payable under this Section 11.1, whether automatically or by declaration, such
Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus all accrued and unpaid interest thereon (including interest accrued thereon at the Default Rate), shall all be immediately due and payable, in each and every case
without presentment, demand, protest or further notice, all of which are hereby waived. 

Section 11.2.    Other Remedies. If any Default or Event of Default has occurred and is continuing, and
irrespective of whether any Notes have become or have been declared immediately due and payable under Section 11.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law,
suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any
power granted hereby or thereby or by law or otherwise; provided that only the Collateral Agent shall be entitled to exercise remedies with respect to the Collateral pursuant to the Pledge Agreement. 

Section 11.3.    Rescission. At any time after any Notes have been declared due and payable pursuant to
Section 11.1(b) or (c), the Required Holders, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all due or overdue interest on the Notes, all principal of any
Notes that are due and payable and are unpaid other than by reason of such declaration, and (to the extent permitted by applicable law) any Late Charge or overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company
nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due
solely by reason of such declaration, have been cured or have been waived pursuant to Section 16, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment
under this Section 11.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon. 

Section 11.4.    No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no delay
on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right, 

  
 11 

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

Section 12.    Collateral Matters. 

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

Section 12.2.    Collateral Agent. 

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

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

  
 12 

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

Section 13.    Registration; Exchange; Substitution of Notes. 

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

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

  
 13 

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

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

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

Section 14.    Payments on Notes. 

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

Section 14.2.    Payment by Wire Transfer. So long as any Purchaser shall be the holder of any Note, and
notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, interest and all other amounts becoming due hereunder by the method and at the address
specified for such purpose below such Purchaser’s name in the Purchaser Schedule, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose, without the
presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall
surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1. Prior to any sale or
other Disposition of any Note held by a Purchaser, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in
exchange for a new Note or Notes pursuant to Section 13.2. 
 Section 14.3.    Withholding . 

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

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

  
 14 

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

Section 16.    Amendment and Waiver. 

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

(a)    no amendment or waiver of any of Sections 1, 2, 3, 4, or 5 hereof, or any defined term (as it is used therein),
will be effective as to any Purchaser unless consented to by such Purchaser in writing; and 
 (b)    no amendment or
waiver may, without the written consent of each Purchaser and the holder of each Note at the time outstanding, (i) subject to Section 11 relating to acceleration or rescission, change the amount or time of any prepayment or payment of
principal of, or reduce the rate or change the time of payment or method of computation of interest on the Notes, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any amendment or
waiver, or (iii) amend any of Section 7 (except as set forth in the second sentence of Section 7.2) and Sections 10(a), 10(b), 11 or 16. 

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

  
 15 

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

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

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

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

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

Section 18.    Miscellaneous. 

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

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

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

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

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

  
 17 

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

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

  
 18 

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

			
	Very truly yours,
	
	Aimco REIT Sub, LLC, a Delaware limited liability company, as the Company
		
	By:	 	  

		 	Title

  
 [Signature Page
to Mezzanine Note Agreement] 

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

its general partner

		
	By:	 	  

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

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

its general partner

		
	By:	 	  

		 	Title

  
 [Signature Page
to Mezzanine Note Agreement] 

 Schedule A 

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

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

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

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

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

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

“Closing” is defined in Section 3. 

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

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

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

  
 Schedule A 

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

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

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

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

  
 A-2 

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

 

	 	(a)	 the government of 

  

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

 

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

 

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

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

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

  

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

  

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

  

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

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

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

	 	(a)	 its liabilities for borrowed money; 

 

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

  
 A-3 

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

 

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

  

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

  

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

 

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

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

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

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

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

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

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

  
 A-4 

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

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

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

  
 A-5 

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

“Notes” is defined in Section 1. 

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

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

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

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

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

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

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

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

  
 A-6 

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

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

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

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

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

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

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

  
 A-7 

 Schedule 1 

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

5.2% Secured Mezzanine Note Due January 31, 2024 
  

			
	No.         	  	        
	 $        
	  	PPN            

 For value received, the undersigned, Aimco REIT Sub, LLC (herein called the
“Company”), a limited liability company organized and existing under the laws of the State of Delaware, hereby promises to pay to
                    , or registered assigns, the principal sum of
                     U.S. dollars (or so much thereof as shall not have been prepaid) on January 31, 2024 (the “Maturity
Date”), with interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid balance hereof at the rate of 5.2% per annum from the date
hereof, payable quarterly, on the first day of January, April, July and October in each year, commencing on April 1, 2021, and on the Maturity Date, until the principal hereof shall have been paid in full. In addition, the Company agrees to pay
Late Charges and interest at the Default Rate, as provided in the Note Agreement referenced below. 
 Payments of principal of and interest
on this Note are to be made in lawful money of the United States of America at the Denver, Colorado office of the Company or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the
Note Agreement referred to below. 
 This Note is one of a series of Secured Mezzanine Notes (herein called the “Notes”)
issued pursuant to the Mezzanine Note Agreement, dated as of                     , 2020 (as from time to time amended, the “Note
Agreement”), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms
in the Note Agreement. 
 This Note is a registered Note and, as provided in the Note Agreement, upon surrender of this Note for
registration of transfer accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the Person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other
purposes, and the Company will not be affected by any notice to the contrary. 

 The Company will make required prepayments of principal on the dates and in the amounts
specified in the Note Agreement. This Note is also subject to optional and mandatory prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Agreement, but not otherwise. The Company’s Obligations
under this Note and the Note Agreement are secured pursuant to the Pledge Agreement. 
 If an Event of Default occurs and is continuing, the
principal of this Note may be declared or otherwise become due and payable in the manner, at the price and with the effect provided in the Note Agreement. 

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

			
	Aimco REIT Sub, LLC
		
	By:	 	
                    

		 	TitleDocument

Exhibit 10.1

[*]: THE IDENTIFIED INFORMATION HAS BEEN OMITTED FROM THE AGREEMENT BECAUSE IT IS BOTH NOT MATERIAL AND WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED

DEVELOPMENT SERVICES AGREEMENT
THIS DEVELOPMENT SERVICES AGREEMENT (this “Agreement”) is dated as of October __, 2019 (“Effective Date”), by and among COMMERCE BANK, a Missouri state bank and trust company (referred to herein as “Owner”), 8027 FORSYTH ACQUISITIONS, L.L.C., a Missouri limited liability company (“8027 Forsyth”) and U.S. CAPITAL DEVELOPMENT, LLC, a Missouri limited liability company (collectively, with 8027 Forsyth, hereinafter referred to herein as “Developer”).

R E C I T A L S:
WHEREAS, Owner owns certain real property located in St. Louis, Missouri and depicted on Exhibit A attached hereto (the “Commerce Land”); and
WHEREAS, Owner desires to construct an office and retail building and parking facility on the Commerce Land (the construction of the parking facility and core and shell of such office and retail building is collectively referred to herein as, the “Commerce Project”); and
WHEREAS, 8027 Forsyth owns or is or will be under contract to acquire certain real property adjacent to the Commerce Land (the “8027 Land”) depicted on Exhibit A on which it is going to develop and construct an office and retail building and parking facility (collectively, the “8027 Project”); and
WHEREAS, the preliminary schematics and outline specifications for the 8027 Project are attached hereto as Exhibit B (the “8027 Plans”); and 
WHEREAS, the Commerce Project and the 8027 Project are intended to be complementary projects and they will share an attached parking garage facility (the “Parking Garage”) that will be constructed and operated on both the Commerce Land and the 8027 Land pursuant to a Parking Garage Agreement in form and substance acceptable to Owner and Developer and consistent with the terms set forth on as Exhibit C attached hereto (the “Parking Garage Agreement”); and
WHEREAS, Developer is knowledgeable and experienced in the development, design oversight, budgeting, construction, scheduling, and financing of projects comparable to the Commerce Project (as further described below) and by engaging Developer on the terms and conditions set forth herein, Owner will benefit from certain cost efficiencies and economies of scale in connection with the development and construction of the Commerce Project and the Parking Garage by engaging Developer to develop and construct the Commerce Project and Parking Garage simultaneously with and in coordination with the development and construction of the 8027 Project; and
    

Exhibit 10.1

WHEREAS, Owner desires to engage Developer to perform certain development services in connection with the development of the Commerce Project, and Developer is willing to accept such engagement, all upon the terms and conditions hereinafter set forth; and
NOW, THEREFORE, in consideration of the compensation and services set forth herein, the mutual covenants and undertakings of Owner and Developer described in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner and Developer hereby agree as follows: 
A G R E E M E N T S:
Article I.

The Projects
1.1  The Commerce Project consists of the development and construction of an office and retail building and attached Parking Garage, and certain related site work and infrastructure improvements on the Commerce Land.  The Commerce Project shall be completed in accordance with this Agreement and otherwise in accordance with: (a) the Plans and Specifications (as hereinafter defined), (b) the architectural, engineering and construction contracts and reports obtained and entered into in accordance with this Agreement, (c) the Project Schedule (as hereinafter defined); and (d) the Project Budget (as hereinafter defined).
1.2  The 8027 Project consists of the development and construction of an office and retail building and attached Parking Garage, and certain related site work and infrastructure on the 8027 Land, all in accordance with the 8027 Plans and the 8027 Project Schedule attached hereto as Exhibit E-2. Developer represents and warrants that the 8027 Plans describe all proposed improvements to be constructed on the 8027 Land that are visible from the exterior, including without limitation (i) improvement exteriors, location, height, bulk, scale, dimensions, massing, proportion, setbacks and lot-coverage, (ii) landscaping, site lighting, signs, utilities and drainage, sidewalks, driveways, loading areas, parking areas, curbs, curb cuts, and retaining walls and fences, and (iii) the conformity and harmony of exterior design and exterior use with the exterior design and exterior use of the Commerce Project (collectively, “Exterior Improvements”). Any changes to the Exterior Improvements shown on the 8027 Plans that add, remove or materially alter the Exterior Improvements shall be subject to Owner’s prior written approval, which approval shall not be unreasonably withheld, conditioned or delayed.  Developer covenants that Substantial Completion of the Parking Garage and the plaza area  located on the roof of the Parking Garage (including landscaping, hardscaping, lighting and furniture on such plaza), will occur on or before the date of Substantial Completion of the Commerce Project.  In the event that Developer fails to acquire all real property constituting the 8027 Land on or before February 1, 2020, then either party may terminate this Agreement upon thirty (30) days’ prior written notice to the other party (provided that if Owner delivers a termination notice to Developer, Developer shall have, during such thirty (30) day period, the right to invalidate the termination by acquiring all real property constituting the 8027 Land), and, in the event of such termination, this Agreement shall be terminated and of no further force and effect as of the date specified in such notice, and the parties shall have no further obligations to one another except that, provided that Developer is not in default beyond applicable cure period of this Agreement, Owner shall, within ten (10) Business Days of Developer’s 
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Exhibit 10.1

written demand therefor (including a reasonably detailed itemized statement and copies of invoices and other reasonable supporting documentation), reimburse Developer for all Predevelopment Costs actually incurred between the Effective Date and the date of such termination not to exceed $315,000, in accordance with the Predevelopment Costs Budget.
1.3      Each party shall use diligent, good faith efforts to finalize and execute the Parking Garage Agreement concurrently with finalizing the Project Budget and GMP under Section 3.1.2 hereof.  If, within forty-five (45) days after the date of this Agreement, the parties have not finalized the Parking Garage Agreement, either party may terminate this Agreement by delivering written notice of such termination to the other party, in which case this Agreement shall be terminated and of no further force and effect, and the parties shall have no further obligations to one another except that, provided that Developer is not in default beyond applicable cure period of this Agreement, Owner shall, within ten (10) Business Days of Developer’s written demand therefor (including a reasonably detailed itemized statement and copies of invoices and other reasonable supporting documentation), reimburse Developer for all Predevelopment Costs (defined below) actually incurred between the Effective Date and the date of such termination, in an amount not to exceed $315,000, in accordance with the Predevelopment Costs Budget (defined below).  Developer shall cause (i) construction of the Parking Garage to be completed in accordance with the 8027 Plans and in accordance with the Plans and Specifications and (ii) the Parking Garage to be open and fully operational, on or before the date of receipt of a final certificate of occupancy (or local equivalent) for the core and shell (“Substantial Completion”) of the Commerce Project. 
Article II.

Engagement of Developer; Term
2.1  Owner hereby engages Developer as the exclusive developer with respect to the Development Services (defined below) for the Project (excluding the Landlord Work and Tenant Work) upon the terms and conditions herein set forth, and Owner agrees not to engage a co-developer with respect to the Development Services; provided, however, that this shall not be construed to limit Owner’s right to engage an owner’s representative for the Project.
2.2  Developer hereby accepts the engagement as the exclusive developer of the Project (excluding the Tenant Work) upon the terms and conditions herein set forth, and Developer agrees to further the interests of Owner with respect to the Commerce Project by furnishing Developer’s skill, experience and judgment in the performance of the services described herein (collectively, the “Services”).  Developer, as Developer at risk as set forth more fully herein and to the extent expressly authorized by Owner hereunder, shall implement or cause to be implemented decisions of Owner in connection with the planning, design, development, construction and scheduling of the Commerce Project as set forth herein.
2.3  Except as otherwise provided in this Agreement, the term (hereinafter called the “Term”) of this Agreement shall commence on the date hereof and shall end upon the later of: (i) Substantial Completion of the Commerce Project; (ii) the completion of all punchlist items related to the Commerce Project; (iii) all obligations of Owner under any agreements with the City of Clayton, Missouri and any public utilities regarding the Commerce Project are fully satisfied and all letters of 
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Exhibit 10.1

credit or other security for such obligations are released; (iv) the date Developer has delivered to Owner all Project Closeout Documents including but not limited to as-builts, shop drawings, O & M manuals, warranties and final lien waivers and all of the required construction close-out deliverables required under Sections 3.2.14 and 3.2.15 hereof; or (v) payment in full of the fees owed to Developer pursuant to Section 4.1 hereof.
Article III.

Development Services

3.1  Project Budget; Plans and Specifications; Project Schedule and Project Reports.  

3.1.1  Developer and Owner have (a) caused to be prepared preliminary schematics and outline specifications for Commerce Project (the “Preliminary Plans and Specifications”), copies of which are attached hereto as Exhibit B-1, (b) prepared a preliminary budget for the development and construction of the Commerce Project based on the current anticipated scope of the Commerce Project as set forth in the Preliminary Plans and Specifications (the “Preliminary Project Budget”), a copy of which is attached hereto as Exhibit D-1, and (c) prepared a milestone schedule for the development and construction of the Commerce Project (the “Project Schedule”), a copy of which is attached hereto as Exhibit E-1. As set forth in the Preliminary Project Budget, the estimated guaranteed maximum price to complete the Commerce Project in accordance with the Preliminary Plans and Specifications is $78,149,515.00 (the “Preliminary GMP”).

3.1.2  Within forty-five (45) days after the date of this Agreement, after consultation with prospective general contractors for the Commerce Project and further revision to and refinement of the Preliminary Plans and Specifications, Developer shall prepare and deliver to Owner an updated, proposed final budget for the development and construction of the Commerce Project, which updated budget shall include a proposed final guaranteed maximum price for the Commerce Project.  Owner shall, within ten (10) Business Days following receipt of such proposed final budget, either: (i) provide Developer with written approval of such proposed final budget; or (ii) deliver written notice of Owner’s disapproval of such proposed final budget. If Owner disapproves of the proposed final budget in such ten (10) Business Day period, Owner and Developer shall reasonably cooperate in good faith to resolve the issues necessitating Owner’s disapproval of such proposed final budget, provided that at any time following Owner’s notice of disapproval, either party may terminate this Agreement by delivering written notice of such termination to the other party, in which case this Agreement shall be terminated and of no further force and effect, and the parties shall have no further obligations to one another except that, provided that Developer is not in default beyond applicable cure period of this Agreement, Owner shall, within ten (10) Business Days of Developer’s written demand therefor (including a reasonably detailed itemized statement and copies of invoices and other reasonable supporting documentation), reimburse Developer for all predevelopment costs actually incurred (the “Predevelopment Costs”) between the Effective Date and the date of such termination, in an amount not to exceed $315,000, in accordance with the predevelopment costs budget attached hereto as Exhibit D-3 (the “Predevelopment Costs Budget”). The parties acknowledge that the costs shown on the Predevelopment Costs Budget are a part of, and not in addition to, the costs included in the Preliminary Project Budget and the Project 
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Exhibit 10.1

Budget.  If Owner approves of the proposed, final budget as set forth above, such final budget shall be attached hereto as Exhibit D-2 (hereinafter referred to as the “Project Budget;” and the guaranteed maximum price set forth in such Project Budget shall hereinafter be referred to as the “GMP”).  Notwithstanding the foregoing, but subject to Owner’s rights to terminate this Agreement pursuant to Section 3.2.1 below, Owner and Developer acknowledge and agree that Developer may increase the Project Budget and the GMP, upon providing written notice thereof to Owner along with reasonable supporting documentation, by the actual cost of any on or off site improvements and exactions required by the City of Clayton in connection with obtaining the Project Entitlements (as defined below). In addition, Owner and Developer acknowledge and agree that neither the Project Budget nor the GMP will include amounts related to any costs or expenses associated with the termination of any existing leases affecting the Commerce Land or the relocation of any existing tenants of the Commerce Land and any such costs shall be the sole responsibility of Owner. 
3.1.3  Developer shall engage, in accordance with the terms and conditions of this Section, the necessary third parties to obtain such surveys, environmental, geo-technical and other third-party reports for the Commerce Project as Developer reasonably deems necessary (collectively, the “Project Reports”).  Owner shall be responsible for the actual cost of all Project Reports up to the applicable amount set forth in the Project Budget and Developer shall be responsible for the cost of Project Reports in excess of the applicable amount set forth on the Project Budget.  Owner’s Approval shall be required prior to engaging any such third party for a Project Report only to the extent the expenses for such Project Reports are in excess of the Project Budget, provided that such approval shall not be unreasonably withheld, conditioned or delayed. Services agreements in forms reasonably acceptable to Owner shall be entered into between Developer and each of the Commerce Project architect and the Commerce Project engineer (the “Architect Agreement” and “Engineer Agreement”, respectively) to prepare the Plans and Specifications, with Owner included therein as a third party beneficiary with rights but not obligations to enforce and assume the terms of the Architect Agreement and the Engineer Agreement.  Following execution hereof, Developer shall coordinate the preparation of detailed plans and specifications for the Commerce Project (collectively with the Preliminary Plans and Specifications, referred to herein, the “Plans and Specifications”) in accordance with the Preliminary Plans and Specifications and Project Budget and shall provide Owner with copies of 25%, 50%, 75%, 90% and 100% versions of such Plans and Specifications, as each successive revised version of the Plans and Specifications is available, for Owner’s Approval not to be unreasonably withheld, conditioned or delayed, and upon completion of same in a form acceptable to both Developer and Owner, shall provide Owner with copies of such Plans and Specifications. If Owner withholds its consent to the Plans and Specifications, or any versions thereof provided to Owner hereinabove, in accordance with this Agreement, then either party may, at its option, terminate this Agreement by written notice to the other party, in which case this Agreement shall be terminated and of no further force and effect, and the parties shall have no further obligations to one another except that, provided that Developer is not in default beyond applicable cure period of this Agreement, Owner shall, within ten (10) Business Days of Developer’s written demand therefor (including a reasonably detailed itemized statement and copies of invoices and other reasonable supporting documentation), reimburse Developer for all Predevelopment Costs actually incurred between the Effective Date and the date of such termination in accordance with the Predevelopment Costs Budget. Notwithstanding anything herein to the contrary, no change or modification may be made to any part of the Plans and Specifications at any time without obtaining the prior written approval of Owner to any such change or modification.  
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Exhibit 10.1

Subject to events of Force Majeure (but only to the extent that costs arising from events of Force Majeure are not the responsibility of the General Contractor) and documented costs directly attributable to Owner Delay, if Project Costs exceed the amount of the GMP or the Project Budget, each of which as will be attached to this Agreement as Exhibit D-2, Developer shall be responsible for all such excess costs. As used herein, “Owner Delay” means (i) any delay in the performance of Developer’s work caused by Owner Change Orders, (ii) any delay beyond the time periods provided to Owner in making elections, approvals or choices required to be made hereunder, and (iii) any delay in completion of Developer’s work exclusively caused by Owner, including, without limitation, delays attributable to Owner’s failure to terminate any leases affecting the Commerce Land or to cause any tenants under such leases to vacate the Commerce Land in order to allow Developer to commence construction of the Commerce Project in accordance with the Project Schedule or Owner’s failure to timely execute such other easements, documents or agreements as are reasonably acceptable to Owner and reasonably required to be executed and delivered by Owner in connection with the development of the Commerce Project to the extent that Owner’s failure to execute any such document precludes Developer from commencing or proceeding with construction of the Commerce Project or the 8027 Project in accordance with the Project Schedule and the 8027 Project Schedule, as the case may be.  Within ten (10) Business Days of the occurrence of any event which Developer believes is an event of Owner Delay, Developer shall provide written notice thereof to Owner in order for such delay in connection with such event to be considered an Owner Delay pursuant to the terms of this Agreement.
3.1.4  Notwithstanding anything herein to the contrary, Owner may, for any reason in its sole discretion, terminate this Agreement by written notice to Developer at any time within forty-five (45) days after the Effective Date, in which case this Agreement shall be terminated and of no further force and effect, and the parties shall have no further obligations to one another except that, provided that Developer is not in default beyond applicable cure period of this Agreement, Owner shall, within ten (10) Business Days of Developer’s written demand therefor (including a reasonably detailed itemized statement and copies of invoices and other reasonable supporting documentation), reimburse Developer for all Predevelopment Costs actually incurred between the Effective Date and the date of such termination, in an amount not to exceed $315,000, in accordance with the Predevelopment Costs Budget.
3.2  Generally.  Developer shall perform the services described in this Section 3.2 (herein called the “Development Services”) and such other services and functions on behalf of Owner in connection with the design and construction of the Commerce Project to the best of its ability as would customarily be undertaken or performed by a developer of a similar project in accordance with the Plans and Specifications, the Contract Documents, the Project Budget, the Project Reports and the Project Schedule, and subject to the limitations hereinafter described.  Without limiting the generality of the foregoing, Developer shall:
3.2.1  Use diligent efforts to secure on Owner’s behalf, and at Owner’s cost up to the applicable amount set forth in the Project Budget, any site plan approvals, building, environmental, zoning and land use permits, and any other permits and approvals from applicable governmental authorities and public utilities necessary for the Commerce Project that are Approved by Owner, including the expiration of any applicable appeals periods and full resolution and adjudication (if applicable) of any appeals (hereinafter collectively called the “Entitlements”).  Owner shall pay all fees 
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Exhibit 10.1

and charges for securing and maintaining the Entitlements, as set forth in the Project Budget.  In connection with the Entitlements, if and to the extent directed by Owner, Developer shall (a) diligently pursue the Entitlements, (b) represent Owner in material meetings with governmental authorities, and (c) coordinate with the project architect (the “Architect”) and engineer (the “Engineer”) (both of which Architect and Engineer shall be subject to Owner’s Approval), each of their respective sub-consultants, and with all Owner’s Representatives in the review of various configurations for the Commerce Project and in preparation of the Plans and Specifications. If, after using good faith diligent efforts, Developer is unable to obtain the Entitlements or such Entitlements involve costs in excess of the amounts allocated for such Entitlements in the Project Budget, or are subject to conditions or restrictions that are unacceptable to Owner, then Owner shall have the right to terminate this Agreement upon written notice to Developer at any time on or prior to April 1, 2020, in which case this Agreement shall be terminated and of no further force and effect, and the parties shall have no further obligations to one another except that, provided that Developer is not in default beyond applicable cure period of this Agreement, Owner shall, within ten (10) Business Days of Developer’s written demand therefor (including a reasonably detailed itemized statement and copies of invoices and other reasonable supporting documentation), reimburse Developer for all Predevelopment Costs actually incurred between the Effective Date and the date of such termination in accordance with the Predevelopment Costs Budget.  If Owner does not elect to terminate this Agreement on or prior to April 1, 2020, then the termination right set forth in this Section 3.2.1 shall thereafter be void and of no further force and effect.
3.2.2  Procure and negotiate on behalf of Owner agreements, including amendments thereto, for architectural, engineering, construction and any other contracts or agreements, including all amendments thereto, for the furnishing of any services, supplies, materials, machinery, or equipment required for the Commerce Project (collectively, the “Contract Documents”), including, without limitation the general contract for construction of the Commerce Project which will be on AIA Document A133–2009 (the “General Contract”) including mutually acceptable industry standard retainage provisions consistent with the general contract for the 8027 Project, and provided that the Contract Documents shall be executed by and in Developer’s name with Owner included therein as a third-party beneficiary.  Owner shall be permitted to participate in the interview process for the selection of the general contractor for the Commerce Project, but Developer, in its discretion, shall select the general contractor for the Commerce Project. Selection of the general contractor for the Commerce Project shall occur simultaneously with the selection of the general contractor for the 8027 Project, and the general contractor selected for the 8027 Project shall be deemed approved as the general contractor (the “General Contractor”) under the General Contract. Prior to entering into any subcontract in excess of $50,000, Developer shall obtain three (3) bids from subcontractors that have been Approved by Owner for the Commerce Project and Developer shall furnish to Owner a detailed, itemized summary and comparison of the bid amounts, including copies of reasonable supporting information.  Developer shall provide copies of such bids to Owner and shall consult with Owner on the selection of subcontractors for the Commerce Project, provided that Developer, in its discretion, provided that the subcontracts are consistent with the terms of this Agreement, the Plans and Specifications, the Project Budget and the Project Schedule, shall select the subcontractors for the Commerce Project from such list of subcontractors Approved by Owner and Developer is not obligated to select the subcontractor with the lowest bid.
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Exhibit 10.1

3.2.3  Periodically update the Project Schedule as Approved by Owner or as otherwise expressly provided under this Agreement.
3.2.4  Provide appropriate administrative, management, supervision and related services to coordinate the activities and responsibilities of the Engineer, Architect, the General Contractor and other contractors, professionals and consultants for the design, development and construction of the Commerce Project, including but not limited to:
(a)administration of the Contract Documents;
(b)participation, as requested by Owner, at all of Owner’s meetings with the Engineer, Architect, the General Contractor and all governmental authorities having jurisdiction over the Commerce Project provided Owner will be entitled to be present at all such meetings;
(c)advice and recommendations to Owner as to the selection of subcontractors and suppliers identified by the General Contractor;
(d)assembly, review and submission to Owner, with a recommendation regarding approval of the documents described in Sections 3.5 and 3.6 hereof with respect to all requests for payment under any Contract Document, provided that all such payments shall be subject to Owner’s Approval;
(e)submission to Owner of suggestions or requests for changes made by the Architect, Engineer or the General Contractor that could improve the design, efficiency or cost of the Commerce Project, including all value engineering proposals, and other change orders which Developer considers meritorious, together with Developer’s recommendation with respect thereto;
(f)advice and recommendations to Owner as to compliance with all terms and conditions applicable to Owner or the Commerce Project or the construction thereof contained in any Entitlement, Project Reports, any recorded covenant, condition or restriction affecting the Commerce Project, any conditions contained in any insurance policy affecting or covering the Commerce Project or in any surety bond obtained in connection with the Commerce Project and all applicable laws, statutes, ordinances, rules regulations, orders and permits of all applicable governmental agencies having jurisdiction over the Commerce Project (“Applicable Laws”) (with the costs of compliance being paid by Owner as part of the Project Budget, subject to Article VII); and
(g)keeping Owner reasonably informed on a regular basis of the progress of the design and construction of the Commerce Project, including the preparation of such reports as may reasonably be requested by Owner and that are of a nature generally requested or expected of developers on similar projects.
3.2.5  Prepare and distribute to Owner monthly, reports on:
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Exhibit 10.1

(a)the cost of the Commerce Project.  The “Project Costs” shall be the actual total hard and soft costs incurred in connection with the acquisition and environmental remediation of the Property and design, construction and completion of the Commerce Project including, but not limited to, the costs of the design and construction of the Commerce Project, on-site improvements and off-site improvements, architectural and engineering fees, developer fees, reasonable legal fees and expenses, and fees and expenses for governmentally required permits, licenses, and inspections, all of which Project Costs shall be included in the Project Budget. Unless otherwise directed by Owner, such reports shall include (i) a summary of Project Costs for the current month; (ii) Project Costs incurred to the date of the report; (iii) a comparison of the Project Budget with actual expenditures and a list of future commitments and anticipated expenditures beyond the succeeding calendar month; (iv) when needed, suggestions for reducing Project Costs; and (v) an update on the Project Schedule; and
(b)the status of the development and construction of the Commerce Project including pictures of construction work completed since any prior reports and an update of the construction work completed to date compared to the Project Schedule.
3.2.6  Make all reasonable efforts to obtain satisfactory performance from the Architect, Engineer and the General Contractor, including all work and services performed, and notify Owner in the event Developer obtains knowledge that any requirements of Contract Documents are not being met.
3.2.7  Make all reasonable efforts to maintain all necessary cooperation among the Architect, Engineer, the General Contractor, subcontractors and suppliers.
3.2.8  Provide to Owner a complete set of the latest versions of the Project Reports and the Plans and Specifications, including without limitation, all change orders, supplementary drawings or material clarifications, and all Contract Documents and other contracts and orders with contractors, subcontractors and suppliers.
3.2.9  Refer requests for clarification of the Plans and Specifications to the Architect or Engineer, and follow through by making sure that proper clarifications are issued on a timely basis.  All material clarifications shall be noted in the Plans and Specifications and shall be dated and initialed by the party issuing the same.
3.2.10  Attend and lead all Commerce Project meetings and other meetings as appropriate.
3.2.11  Participate in all regularly scheduled inspections of the Commerce Project made by representatives of the Architect or Engineer, Owner, lenders or governmental agencies, and be available for consultation at all times while design or construction services are being performed on the Commerce Project.
3.2.12  Process any punchlist items and defect and warranty claims for the first year after Substantial Completion of the Commerce Project (the “Warranty Period”) and following the 
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Exhibit 10.1

expiration of such Warranty Period, Developer shall assign to Owner any remaining Third Party Guarantees (as defined below) still in effect. 
3.2.13  Review all applications for payment and supporting documentation prepared by the General Contractor and others performing work or furnishing  materials, and process all documentation required in connection with draws under the Commerce Project financing in accordance with procedures established by the construction lender, if applicable, and in compliance with the requirements described in Section 3.6 hereof.
3.2.14  Complete and deliver exclusive possession of the Commerce Project to Owner lien-free, in a good and workmanlike manner in accordance with the Plans and Specifications and all Applicable Laws prior to the date set forth in the Project Schedule and under the costs set forth in the Project Budget.  The following obligations of Developer are conditions precedent to Substantial Completion and delivery of the Commerce Project: (a) the Commerce Project is available for construction of tenant improvements with all of Developer’s work complete, subject to any so-called punchlist items that do not preclude construction of the tenant improvements (which punchlist shall have been assembled in cooperation and in connection with a joint inspection of the Premises with Owner at least fifteen (15) days prior to delivery); (b) Developer has delivered to Owner all approvals and certificates of completion and occupancy required from applicable Governmental Authorities in connection with Developer’s work; (c) Developer has delivered to Owner a certificate from the Architect that Developer’s work is complete; (d) Developer has delivered to Commerce all keys, codes and combinations relating to Developer’s work.  At all times during the construction of the Commerce Project, Owner and its designated representatives may oversee Developer’s work, and Developer shall cooperate with and facilitate such oversight as requested by Owner. Any entry on the Commerce Land for such purposes shall not be construed as delivery or acceptance of the Commerce Project by Owner.  Owner agrees not to interfere with the completion of Developer’s work in exercising its right of entry.  If for any reason other than a Force Majeure delay or Owner Delay, Developer fails to timely commence or Substantially Complete the Commerce Project in accordance with the Project Schedule and the terms and conditions of this Paragraph, Developer agrees to indemnify and hold harmless Owner from and against any and all costs, liability, damage or expenses arising out of or attributable to such failure, including without limitation, any liability to third -party tenants of the Commerce Project due the failure of Developer for any reason, other than Force Majeure delay or Owner Delay, to Substantially Complete the Commerce Project in accordance with the Project Schedule; provided that, Developer shall only be liable for any such liability to third-party tenants of the Commerce Project if Owner provides copies of the leases to such third-party tenants to Developer prior to the execution thereof by Owner and Developer provides prior written consent of the applicable damages provisions therein. 
3.2.15  Developer shall deliver to Owner as soon as practicable after completion: (a) an as-built ALTA/ACSM survey of the Commerce Project certified to Owner (the “As-Built Survey”) showing (i) the actual location of all improvements on the Commerce Land, including without limitation all parking and service areas, and (ii) the actual location of all underground utilities on the Premises (with the cost of the As-Built Survey being included in the Project Budget); (b) copies of all final lien waivers concerning Developer’s work, including final lien waivers from the General Contractor and all subcontractors; and (c) an assignment of all Third Party Guarantees (as hereinafter defined) in form and substance reasonably satisfactory to Owner, provided that Developer may retain 
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Exhibit 10.1

rights under such Third Party Guarantees for a period of one (1) year following Substantial Completion in order to satisfy its obligation to process any defect or warranty claims as set forth in Section 3.2.12 above. “Third Party Guarantees” shall mean all warranties and guarantees from the Architect, General Contractor and/or the other contractors such Third Party Guarantees, which warranties and guarantees shall be reasonably Approved by Owner.
3.2.16  Developer guarantees and warrants that all of Developer’s work shall be completed in a good and workmanlike manner, in compliance with all Applicable Laws, in accordance with the Plans and Specifications and free from defects.  For a period of one (1) year after the date of Substantial Completion, if any part of Developer’s work shall not comply with the foregoing guarantee and warranty (except for damage or defect caused by abuse, improper or insufficient maintenance or operation or normal wear and tear under normal usage), Developer, shall cause the General Contractor to perform all work and services related to the Commerce Project as may be required to fully and timely satisfy Contractor’s obligations under the construction warranties furnished by Contractor under the General Contract.   
3.2.17 Provide, or cause the General Contractor to provide, a payment and performance bond covering the cost of the Commerce Project; provided that the expense for such bond is included in the Project Budget.
3.2.18  Procure from the General Contractor or provide all payment and performance bonds required under the Contract Documents.
3.2.19  Perform all common improvements associated with the public and ancillary spaces of the Commerce Project to the extent set forth in the Plans and Specifications.
3.2.20  If requested by Owner, and subject to terms and conditions that are mutually agreeable to Owner and Developer, Developer shall perform tenant improvements that the landlord is responsible for constructing under the applicable tenant lease (“Landlord Work”), to the extent applicable, in connection with construction of such Landlord Work.  If requested by Owner, and subject to terms and conditions that are mutually agreeable to Owner and Developer, Developer shall be responsible for oversight of tenant improvements that the tenant under the applicable tenant lease is responsible for constructing (“Tenant Work”), including monitoring the progress of the Tenant Work, coordinating between such tenant’s contractors and the General Contractor during periods in which construction of the Tenant Work coincides with ongoing construction of the Commerce Project, and, to the extent directed by Owner, acting as Owner’s agent in communications with such tenant regarding the Tenant Work.  If prior to or during the first twelve (12) months following Substantial Completion, Owner solicits bids from third-parties for the Landlord Work and Tenant Work, then Owner shall afford Developer the opportunity to submit a proposal for the construction of the Landlord Work and the Tenant Work within a reasonable time period designated by Owner.  Owner shall have no obligation to engage Developer for such work.  
3.3  Limitations on Development Services.
(a)Except for such matters as may be expressly delegated in writing to Developer by Owner or as otherwise expressly set forth herein, neither Developer nor any of its 
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Exhibit 10.1

Affiliates shall make or approve any change in the construction of the Commerce Project, in the Plans and Specifications, or the Project Budget. 
(b)Subject to the terms of Section 3.3(a), and as expressly Approved by Owner, Developer shall have the authority to make and implement daytoday decisions that are necessary in the performance of its obligations hereunder and to render directions to all third parties in connection therewith. 
(c)For purposes of this Agreement, the phrases “Approval of Owner,” “Approved by Owner” or “Owner’s Approval” shall mean the written approval of Owner’s authorized representative in accordance with Section 10.2(a).  Owner may notify Developer in writing of additional officers permitted to give approval on behalf of Owner.  
3.4  Budget.  Developer shall monitor the General Contractor’s construction of the Commerce Project and ensure that all costs incurred in connection therewith are equal to or less than the amounts set forth in the Project Budget.  The Project Budget shall constitute a major control under which Developer shall manage the Commerce Project. No expense may be incurred or commitments made by Developer which exceed the amount allocated to each item in the Project Budget, nor may the entire Project Budget be exceeded without the Approval of Owner, except to the extent Developer is responsible for such expenses or costs. If discrepancies in the Project Budget occur or are reasonably anticipated by Developer, Developer shall notify Owner promptly of the expected change and prepare and submit to Owner an analysis of the anticipated impact of the change, together with Developer’s recommendation for mitigation or resolution of such discrepancies. Subject to the limitations set forth in this Agreement, all Project Costs in excess of the GMP shall be Developer’s responsibility except for any Owner Change Order as provided in Section 3.5 below.  Developer shall include a “Project Contingency” calculated in accordance with the formula shown in Exhibit D-1.  Developer shall use the Project Contingency only for Force Majeure events, Owner Delay events or Owner Change Orders in the work. Design coordination issues shall be at Developer’s sole risk.  Developer’s right to use all or any portion of the Project Contingency shall be subject to satisfaction of the following pre-conditions: (a) Developer shall provide written notice to Owner explaining in reasonable detail the permitted reason for use of such Contingency amount, along with reasonable supporting materials (a “Project Contingency Notice”); (b) Owner shall have seven (7) business days after receipt of a Project Contingency Notice to notify Developer in writing of any good faith objection to all or any portion of the proposed use of Project Contingency (a failure of  Owner to respond within such seven (7) business day period shall be deemed approval of use of Project Contingency as described in the Project Contingency Notice); (c) if Owner timely objects to a proposed use of Project Contingency, then the parties shall diligently and in good faith seek to establish a mutually-acceptable resolution of their differences; and (d) Developer may proceed to use Project Contingency funds in accordance with such mutually-acceptable resolution. 
3.5  Change-Order Approval Procedure.  In the event a change order for the Commerce Project is required that would result in an increase in Project Costs above the GMP, Developer shall submit such proposed change order for Owner’s Approval and if Owner fails to accept, reject or otherwise take any action with respect thereto within seven (7) Business Days (as hereinafter defined) after Owner’s receipt of such change order, such change order shall be deemed approved by Owner.  If 
    - 12 -

Exhibit 10.1

Owner disapproves of any such proposed change order in such seven (7) Business Day period, Owner and Developer shall reasonably cooperate in good faith to resolve the underlying issue necessitating the proposed change order. In the event a proposed change order would increase the Project Budget or the GMP or materially adversely affect the design, appearance, value, or quality of the Commerce Project, or materially extend any completion schedule, then Owner’s approval to such change order may be withheld in Owner’s sole discretion.  In the event a proposed change order would not increase the Project Budget or the GMP or materially adversely affect the design, appearance, value, or quality of the Commerce Project, or materially extend any completion schedule, then Owner’s approval to such change order shall not be unreasonably withheld, conditioned or delayed.  In any case, net costs associated with any such change order shall be deemed incorporated into the Project Budget and GMP if and to the extent such change order is an Owner Change Order (defined below) and causes the Project Costs to  exceed the Project Budget.  Following approval of the Plans and Specifications pursuant to Section 3.1 above, the Plans and Specifications may be modified from time to time as required by Owner in its discretion (each, an “Owner Change Order”); provided, however, that Developer’s prior written consent shall be required for any Owner Change Order that would materially alter: (i) the structural components, of the Commerce Project; (ii) the character or intended use of the Commerce Project in a manner that causes the Commerce Project to no longer comply with the Entitlements obtained from the City; (iii) the Project Schedule; or (iv) structural components, use or projected completion date of the Parking Garage; which consent shall not be unreasonably withheld, conditioned or delayed.  By way of example and not limitation, additional costs and change orders to address site and construction costs that are shown on, or could be reasonably inferred from, the Plans and Specifications, will not be deemed an Owner Change Order and, subject to the limitations set forth in this Agreement, will be the sole responsibility of Developer without pass-through to Owner as Project Costs or otherwise.
3.6  Draw Process.  As a condition to and in conjunction with the performance of the Development Services, Owner shall make sufficient funds available to pay its obligations under this Agreement pursuant to the draw process outlined in this Section below for the completion of the Commerce Project and the payment of the Development Fee and Owner shall fund such amounts, without offset, in accordance with such draw process following receipt of the documents required below.  Developer may not submit more than one (1) draw request per month.  As a condition precedent to each disbursement of funds by Owner hereunder (a “Funding”), Developer shall furnish or cause to be furnished to Owner, each of the following documents in form and substance reasonably satisfactory to Owner at least ten (10) days prior to Developer's desired Funding date:
3.6.1  a Draw Request Summary Form in a form reasonably acceptable to Owner, certified to be true and correct by Developer, together with a completed standard AIA Form G702 and Form G703 signed by the General Contractor for such phase of construction, together with sworn statements and conditional waivers of liens signed by all landscape architects, engineers, planners, designers, subcontractors, technology suppliers and consultants, and other suppliers and vendors (together with the Architect and the General Contractor, collectively, the "Third Parties") covering all work, together with such invoices, contracts or other supporting data as Owner or the title company may reasonably require to evidence that all costs for which Funding is sought have been incurred;
    - 13 -

Exhibit 10.1

3.6.2  unconditional waivers of claims and liens of all Third Parties with respect to all prior Fundings, to the extent not previously delivered to Owner;
3.6.3  copies of any final and executed Change Orders not previously furnished to Owner;
3.6.4  copies of all Contract Documents executed since the last Funding and any amendments or modifications to any Contract Documents;
3.6.5  satisfactory evidence that all governmentally-required permits and zoning approvals with respect to the applicable stage of construction of the Commerce Project, if not previously delivered to Owner, have been obtained (e.g. building permit, grading permit); and
3.6.6  such other instruments, documents and information as Owner or the title company may reasonably request.
3.7  Liens.  Developer shall not permit any lien or other encumbrance to be filed or to remain of record as a claim against the Commerce Land or Commerce Project or against any monies due or to become due for any work performed or materials furnished by, to or on behalf of Developer.  Developer shall defend, indemnify and save harmless Owner from any lien or claim of lien filed or maintained by any laborer, materialman, subcontractor, or other person or entity directly or indirectly acting for, through, or under Developer, against the Premises or any interest therein or against any monies due or to become due.  Without limiting the foregoing, Developer shall cause any such lien or claim of lien to be satisfied, removed, or discharged by bond, payment, or otherwise within thirty (30) days. This Section shall survive termination of this Agreement.
3.8  Developer Requests for Owner’s Approval.  In the event Developer, from time to time, requests Owner’s Approval regarding an issue that directly affects the critical path of the 8027 Project, Developer shall submit such request in writing to Owner’s Representatives, explaining the request in reasonable detail along with reasonable supporting materials and including the following heading: “CRITICAL PATH ITEM – RESPONSE REQUIRED WITHIN 7 BUSINESS DAYS” (a “Critical Path Approval Request”).  If Owner fails to accept, reject or otherwise take any action with respect to a Critical Path Approval Request within seven (7) Business Days after Owner’s receipt thereof, Owner shall pay Developer $5,000 per day for each day thereafter until Owner accepts, rejects or otherwise takes action with respect to such Critical Path Approval Request.  Such amount shall be paid to Developer as liquidated damages (and not as a penalty), it being mutually acknowledged and agreed that the amount of Developer’s damages for such delay would be difficult or impossible to ascertain in advance and that this per diem amount constitutes a reasonable approximation thereof.  If Owner disapproves of any Critical Path Approval Request, Owner and Developer shall reasonably and diligently cooperate in good faith to resolve the underlying issue.
Article IV.

Compensation 
    - 14 -

Exhibit 10.1

4.1  Development Fee and Construction Management Fee. As compensation for Developer’s agreement to perform the Services contemplated under this Agreement from and after the date hereof, Owner shall pay Developer a development fee in an amount equal to [*] percent ([*]%) of total Project Costs actually incurred that constitute hard construction costs (excluding any costs related to Landlord Work, Tenant Work and Project Contingency amounts) and soft costs (including the Construction Management Fee but excluding any Project Contingency amounts) directly associated with the Commerce Project, all in amounts not to exceed the applicable amounts set forth in the Project Budget, as the same may be amended in accordance with the terms hereof (the “Development Fee”) in the manner set forth on Exhibit F attached hereto and incorporated herein and a construction management fee in the amount equal to [*] percent ([*]%) of total hard construction costs actually incurred for the Commerce Project (excluding any costs related to Landlord Work, Tenant Work and Project Contingency amounts) in amounts not to exceed the applicable amounts set forth in the Project Budget, as the same may be amended in accordance with the terms hereof (the “Construction Management Fee”) in the manner set forth on Exhibit F attached hereto and incorporated herein.
4.2  Tenant Improvements Fee.  As compensation for Developer’s agreement to perform the Services (if any) contemplated under this Agreement with respect to Landlord Work and Tenant Work, Owner shall pay to Developer a fee in an amount equal to [*] percent ([*]%) of total hard construction costs actually incurred for Landlord Work and Tenant Work (the “TI Fee”), provided that the construction of such Landlord Work and Tenant Work is actively overseen and managed by Developer at Owner’s request. The TI Fee shall be paid in the manner set forth on Exhibit F attached hereto and incorporated herein.
4.3  Leasing Commission. In consideration for Developer’s sourcing and procurement of a lease for space in the Project by Husch Blackwell, LLP (“Anchor Tenant”), Owner shall pay Developer a leasing commission (the “Leasing Commission”) in the amount of [*] percent ([*]%) of the total aggregate rent payable by Anchor Tenant during the term of the lease to be entered into by and between Owner (or its Affiliate) and Anchor Tenant (or its Affiliate).  For purposes of this Paragraph, “total aggregate rent” shall refer to gross rental or its equivalent.  Accordingly, in the event that rent payable by Anchor Tenant is triple-net, then the total aggregate rent payable by Anchor Tenant for purposes of this Paragraph shall be deemed to be the amount of triple net rent payable under such lease plus $[*] per rentable square foot per annum.    The Leasing Commission shall be due and payable as follows: (a) one-half upon: (i) the execution and delivery by Owner and Anchor Tenant of a binding and valid lease agreement for the Commerce Project and (ii) commencement of vertical construction on the Commerce Project following the expiration or waiver of the termination rights of Owner pursuant to Sections 3.1.2, 3.1.3, or 3.2.1 hereof; and (b) one-half upon the earlier of lease commencement or the date Anchor Tenant takes occupancy of the premises.
4.4  Savings.  To the extent there are any cost savings created through the course of the Commerce Project (whether considered “hard” or “soft” costs) and these savings are not owed to the General Contractor, upon Substantial Completion and reconciliation of all Project Costs, the amount of any such cost savings shall accrue one hundred percent (100%) to Developer, except that one hundred percent (100%) of any remaining Project Contingency shall be paid to Owner.  All cost savings owed to Developer and Owner shall be paid within ten (10) Business Days after the later of Substantial Completion of the Commerce Project and completion of all punchlist items for the Commerce Project.
    - 15 -

Exhibit 10.1

Article V.

Compliance With Applicable Laws
If Developer receives any notice of a violation of any Applicable Laws, Developer shall immediately notify Owner and furnish copies of such notice.  
Article VI.

Books and Records
Owner and its designees may upon request inspect and audit any of Developer’s books and records relating to the Commerce Project.  Owner and its designees shall have the right up to two (2) times, in each case upon thirty days’ prior written request, on dates and at times mutually and reasonably acceptable to each of Owner and Developer, between the Effective Date and the first (1st) anniversary of completion of the 8027 Project, to inspect any of Developer’s records relating to construction of the 8027 Project.  Developer shall keep or cause to be kept, during the development and construction period and for a period of at least three (3) years following completion of the Commerce Project, appropriate and complete records reasonably required by Owner in connection with the Commerce Project documenting all costs and expenses budgeted and  incurred in connection with Developer’s work, including, but not limited to, copies of all of the Project Budget, the Plans and Specifications and amendments, changes, modifications or revisions thereto, drawings, change orders, invoices, financial records, shop drawings, product samples and data, the Contract Documents and all amendments thereof and all other documents concerning the Commerce Project.  Developer shall also, for a period of at least three (3) years following completion of the Commerce Project, keep or cause to be kept suitable books of control and account showing all receipts, expenditures and all other records necessary or convenient with regard to the Commerce Project.  If at any time after such three (3) year period, Developer intends to dispose of or destroy any such books and records, it shall notify Owner in writing and allow Owner a period of thirty (30) days to obtain copies of same.
Article VII.

Insurance and Indemnity
7.1  Developer’s Indemnification.  Developer agrees to indemnify, defend and hold harmless Owner and its Affiliates, and each of their respective directors, officers, employees and shareholders (individually, an “Owner Indemnified Party”) to the fullest extent permitted by law from all liabilities, losses, interest, damages, costs or expenses (including, without limitation, reasonable attorneys’ fees, whether suit is instituted or not, and if instituted, whether incurred at any trial or appellate level or postjudgment), assessed against, levied upon, or collected from, Owner Indemnified Party arising from: (i)  the fraud, negligence or willful or wanton misconduct of Developer: or (ii) a material breach of this Agreement by Developer.  Notwithstanding the foregoing, Developer will not be required to indemnify any Owner Indemnified Party with respect to any liability, loss, damage, cost or expense to the extent that the Owner Indemnified Party is actually reimbursed by the proceeds of insurance 
    - 16 -

Exhibit 10.1

maintained pursuant to this Agreement.  Developer’s indemnification obligations set forth herein shall survive the termination of this Agreement.  
7.2  Owner’s Indemnification.  Owner agrees to indemnify, defend and hold harmless Developer and its Affiliates, and each of their respective directors, officers, employees, agents and shareholders (individually, an “Developer Indemnified Party”) to the fullest extent permitted by law from all liabilities, losses, interest, damages, costs or expenses (including, without limitation, reasonable attorneys’ fees, whether suit is instituted or not, and if instituted, whether incurred at any trial or appellate level or post judgment), threatened or assessed against, levied upon, or collected from, Developer Indemnified Party arising from the fraud, negligence or willful or wanton misconduct of Owner or a material breach of this Agreement by Owner.  Notwithstanding the foregoing, Owner will not be required to indemnify any Developer Indemnified Party with respect to any liability, loss, damage, cost or expense to the extent that the Developer Indemnified Party is actually reimbursed by the proceeds of insurance maintained pursuant to this Agreement. Owner’s indemnification obligations set forth herein shall survive the termination of this Agreement.
7.3  Owner’s Insurance.  With respect to the Commerce Project, an affiliate of Owner or Owner shall maintain, at Owner’s expense, public liability insurance with a broad form comprehensive general liability endorsement and any other insurance coverage as Developer and Owner deem reasonably necessary and any such other insurance required of Owner by the City of Clayton during the construction of the Commerce Project.  The public liability insurance may be procured under an umbrella policy with limits of liability reasonably acceptable to Owner and Developer.
7.4  Developer’s Insurance.  Developer, at its sole cost and expense, shall maintain public liability insurance with a broad form comprehensive general liability endorsement (or alternatively, commercial general liability insurance), professional liability insurance, and worker’s compensation insurance as required by applicable law, all in amounts reasonably acceptable to Owner.  All such insurance coverage shall also name Owner, its lender and such other parties reasonably designated by Owner as an additional insured thereunder.  In addition, Developer will procure or will require General Contractor to procure and maintain appropriate builder’s risk insurance in a form and substance acceptable to Owner.  All such insurance coverage shall also name Owner, the Owner’s Lender and such other parties reasonably designated by Owner as an additional insured thereunder.
7.5  Evidence of Insurance.  Simultaneous with the execution of this Agreement, Developer shall provide Owner and Owner shall provide Developer with certificates of insurance or other satisfactory documentation which evidences that the insurance required under this Agreement is in full force and effect at all times.  Policies required to be obtained by a party hereunder shall name the other party as an additional insured party and must be endorsed to provide that thirty (30) days’ advance written notice of cancellation or material change will be given to the other party. All policies to be obtained pursuant to this Article VII shall contain waivers of subrogation rights, to the extent readily available for a minimal additional premium. Owner and Developer hereby waive any and all claims and causes of action against each other to the extent covered by insurance.  All insurance required to be carried by Developer, Owner, any contractor or subcontractor shall be written with companies having a rating in the Best’s key Rating Guide of A: VII or better, which companies shall be licensed to do business in the State of Missouri.
    - 17 -

Exhibit 10.1

7.6  Contract Documents.  Developer shall cause to be inserted in any Contract Document provisions to the effect that the other contracting party shall indemnify, defend and save harmless Developer and Owner from and against all claims, losses and liability resulting from any damage or injury to, or death of, persons or property caused or occasioned by or in connection with or arising out of any action or omissions of said contracting party or its employees or agents, and from and against all costs, attorneys’ fees and expenses in connection therewith.
7.7  Developer’s Duties in Case of Loss.  Developer shall:
(a)immediately notify Owner of any fire, explosion, collapse subterranean issue or other damage to the Commerce Project. Owner shall arrange for an insurance adjuster to view the Commerce Project before repairs are started, but in no event shall Developer settle any losses, complete loss reports, adjust losses or endorse loss drafts without Owner’s Approval; and
(b)promptly notify Owner of any personal injury or property damage occurring in connection with the Commerce Project.
7.8    Limitation on Damages.  Notwithstanding anything to the foregoing set forth above or elsewhere in this Agreement, the parties agree that neither Owner nor Developer shall be liable to the other for any special, consequential, exemplary or punitive damages arising out of a breach of this Agreement or otherwise.
Article VIII.

Notices
8.1  Any notice, request, demand, instruction or other document to be given or served hereunder or under any document or instrument executed pursuant hereto shall be in writing and shall be delivered (w) personally, (x) by United States registered or certified mail, return receipt requested, postage prepaid or (y) by overnight express courier, postage prepaid and addressed to the parties at their respective addresses set forth below.  Any such notice, request, demand, instruction or other document shall be considered given or delivered, as the case may be, on the date of personal delivery, in the case of (w) above, on the date of deposit in the United States mail, in the case of (x) above, and on the date of delivery to the overnight courier service, in the case of (y) above.  A party may change its address for receipt of notices by service of a notice of such change in accordance herewith.
    - 18 -

Exhibit 10.1

						
	To Owner:

	Commerce Bank
8000 Forsyth Boulevard, Suite 2nd Floor
Clayton, Missouri 63105
Attention: Charles Kim
Email: Charles.Kim@CommerceBank.com

	Copy to:	Tower Properties Company
		1000 Walnut, Suite 900
		Kansas City, Missouri 64106
		Attention:  Stanley J. Weber
		Email:  sweber@towerproperties.com

	Copy to:	Commerce Bank
8000 Forsyth Boulevard, Suite 1100
Clayton, Missouri 63105
Attention: Thomas J. Noack
Email: Thomas.Noack@CommerceBank.com

	Copy to:	Lewis Rice LLC
		600 Washington Avenue
Suite 2500
St. Louis, Missouri 63101

		Attention:  David Lemkemeier
		Email:   DLemkemeier@lewisrice.com

		
	To Developer:	8027 Forsyth Acquisitions
8027 Forsyth Blvd.

		St. Louis, Missouri  63105
		Attention James G. Koman
Email:jkoman@uscd.com

		
	Copy to:	U.S. Capital Development, LLC
		8025 Forsyth Blvd.
		St. Louis, Missouri 63105
		Attention:  Scott Sachtleben
		Email:  ssachtleben@uscd.com

		
	Copy to:	STL Legal Group, LLC
		8027 Forsyth Blvd.
		St. Louis, Missouri 63105
		Attention:  Joe Hietpas
		Email:  jhietpas@stllegalgroup.com

		
		

Article IX.

Assignment
9.1  This Agreement may not be assigned by Developer or Owner; provided that Developer may, with Owner’s prior written consent, assign this Agreement to (i) an entity controlled by or affiliated with Developer; or (ii) to a joint venture in which Developer has a controlling interest.  Owner shall have the right to assign this Agreement for collateral purposes to the lender(s) providing the 
    - 19 -

Exhibit 10.1

financing for the Commerce Project. Any purported assignment in contravention of the first sentence shall be void and of no effect.  
Article X.

Relationship of Parties

10.1  Nature of Relationship.  Developer is an independent contractor, with authority to act only in accordance with the terms of this Agreement and nothing explicit or implied in this Agreement shall be construed as creating a partnership or joint venture or an employment relationship between Developer (or any person employed by Developer) and Owner or any other relationship between the parties hereto except that of owner and independent contractor.  Developer acknowledges and agrees that it shall act as an independent contractor hereunder with respect to Owner in connection with Developer’s obligations under this Agreement.
10.2  Representatives.
(a)Owner hereby designates Stanley J. Weber and Dennis Hoelzer  as Owner’s representatives (“Owner’s Representatives”) for purposes of granting any consents or approvals with respect to matters arising under this Agreement.  Owner’s Representatives shall be authorized to execute and deliver on behalf of Owner any and all documents, notices, approvals, consents or other writings and changes thereto with respect to such matters, and Developer shall have the right to rely on any documents executed by an Owner’s Representative.  By written notice delivered to Developer not earlier than two (2) days prior to the effective date thereof, Owner shall be entitled to substitute or add other parties as the Owner’s Representatives hereunder.    
(b)Developer hereby designates James G. Koman as Developer’s representative (“Developer’s Representative”) for purposes of granting any consents or approvals by Developer with respect to matters arising under this Agreement.  Developer’s Representative shall be authorized to execute and deliver on behalf of Developer any and all documents, notices, approvals, consents or other writings and changes thereto with respect to such matters, and Owner shall have the right to rely on any documents executed by Developer’s Representative.  Developer’s Representative shall have the power and authority to act on behalf of, and to bind Developer under this Agreement.  By written notice delivered to Owner not earlier than ten (10) days prior to the effective date thereof, Developer shall be entitled to substitute another party as the Developer’s representative hereunder. 
Article XI.

Default and Termination

11.1  Default by Developer.  Developer shall be in default hereunder in the event:  (i) Developer shall, fail to pursue or perform any material covenant, agreement, term or provision of this 
    - 20 -

Exhibit 10.1

Agreement to be pursued or performed by Developer and such default shall continue for a period of thirty (30) days after notice thereof by Owner to Developer; provided, however, that if such failure is not susceptible of cure within such thirty (30) day period, then Developer shall have an additional time not to exceed an additional sixty (60) days as is necessary to effect such cure, provided Developer shall commence its efforts to cure within said thirty (30) day period and thereafter pursue such cure diligently to completion; (ii) a receiver is appointed to take possession of the assets of Developer or an assignment by Developer for the benefit of creditors, or any action taken or suffered by Developer under any insolvency, bankruptcy, reorganization, moratorium, or other debtorrelief act or statute; (iii) the dissolution of Developer; (iv) Developer shall fail to pursue or perform any obligation hereunder as a result of fraud, embezzlement or other willful misconduct (“Cause”).  Upon the occurrence of a default by Developer hereunder, Owner shall be entitled to terminate this Agreement and to pursue any right or remedy it may have at law or in equity as a result of such default.  
11.2  Default by Owner.  In the event Owner fails to pay Developer the Development Fee or Construction Management Fee, to the extent earned, in accordance with the terms of this Agreement within thirty (30) days after the date any installment thereof is due, Developer, following five (5) Business Days’ written notice to Owner (and Owner’s failure within such five (5) Business Day period to pay to Developer such amount due) shall have the right to terminate this Agreement and to pursue any right or remedy it may have at law or in equity as a result of such default.
Article XII.

Miscellaneous

12.1  Governing Law.  This Agreement shall be construed and enforceable in accordance with the laws of the State of Missouri.
12.2  Entire Agreement.  This Agreement contains the entire agreement between the parties and shall not be amended, modified or canceled except in writing signed by the party to be charged.
12.3  Successors and Assigns.  All terms, conditions and agreements herein set forth shall inure to the benefit of, and be binding upon the parties and, subject to Article IX hereof, their respective permitted successors and assigns.
12.4  Waiver.  The failure of either party to insist upon strict performance of any term or provision of this Agreement or to exercise any option, right or remedy herein contained, shall not be construed as a waiver or as a relinquishment for the future of such term, provision, option, right or remedy, but the same shall continue and remain in full force and effect.  No waiver by either party of any term or provision hereof shall be deemed to have been made unless expressed in writing and signed by such party.
12.5  Partial Invalidity.  If any portion of this Agreement shall be decreed invalid by the judgment of a court, this Agreement shall be construed as if such portion had not been inserted herein except when such construction would constitute a substantial deviation from the general intent and purpose of this Agreement.
    - 21 -

Exhibit 10.1

12.6  Non-Discrimination Policy.  Developer and Owner agree that it will not deny the benefits of this Agreement to any person, nor discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, age or any other applicable protected classification.  
12.7  Counterparts.  This Agreement may be signed in counterparts, which collectively shall constitute a single agreement.
12.8  Confidentiality.  The parties each agree that they will keep confidential any information designated as such by the other or not otherwise publicly available which is derived from access, investigation or information furnished by either party in connection with this Agreement, including the negotiations conducted in connection herewith and the terms herewith, and, if the transactions contemplated hereby are not consummated, will promptly return to the other all such information and will not thereafter use such information; provided that such confidentiality obligations shall not preclude a party from delivering such information to its potential tenants, investors or attorneys, lenders and consultants hired in connection with this transaction or as otherwise required by law, or in Owner’s reasonable judgement in connection with Entitlements or leasing.
12.9  Definitions.  For purposes of this Agreement, the following terms shall have the meanings ascribed thereto;
(a)“Affiliate” shall mean, with respect to any specified person, any other person directly or indirectly controlling or controlled by or under direct or indirect common control with, or any general partner, manager or managing member in, such specified person.  An Affiliate of a person includes, without limitation, (i) any member, shareholder, officer or director of such person, (ii) any record or beneficial owner of more than 10% of any class of ownership interests of such person and (iii) any Affiliate of the foregoing.  For the purposes of this definition, “control” when used with respect to any specified person means the power to direct the management and policies of such person, directly or indirectly, whether through the ownership of voting securities or other beneficial interest, by contract or otherwise, and the terms “controlling” and “controlled” having the means correlative to the foregoing; and
(b)“Business Day” shall mean any day other than a Saturday, Sunday or any other day on which national banks in St. Louis, Missouri are not open for business.
(c)“Force Majeure” shall mean delays actually caused by any of the following:  acts of God, fire, abnormal weather, explosion, riot, war, labor disputes, inability to obtain necessary materials, or Owner Change Orders.  If a delay of performance occurs, the period for performance shall be extended for a time equal to the time lost because of the Force Majeure, but only if the party entitled to such extension gives prompt notice to the other party of the occurrence causing the delay and if the party so excused acts in good faith and uses due diligence to perform.  The inability to obtain financing or lack of money shall not constitute Force Majeure, and this provision shall not excuse non-payment of monies owed hereunder. 
***************  (Signature Page follows)
    - 22 -

Exhibit 10.1

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

OWNER:

COMMERCE BANK

By:    /s/ Charles G. Kim            
    Charles G. Kim
    EVP and CFO

DEVELOPER:

8027 FORSYTH ACQUISITIONS, LLC

By:    /s/ James G. Koman        
    James G. Koman, Manager

U.S. CAPITAL DEVELOPMENT, LLC

By:    /s/ Scott Sachtleben        
    Scott Sachtleben, Manager

    - 23 -

Exhibit 10.1

EXHIBIT A

LAND DEPICTION

[Intentionally Omitted]
    - 24 -

Exhibit 10.1

EXHIBIT B

PRELIMINARY PLANS AND SPECIFICATIONS FOR 8027 PROJECT

[Intentionally Omitted]
    - 25 -

Exhibit 10.1

EXHIBIT B-1
PRELIMINARY PLANS AND SPECIFICATIONS FOR COMMERCE PROJECT

[Intentionally Omitted]
    - 26 -

Exhibit 10.1

EXHIBIT C

PARKING GARAGE AGREEMENT

[Intentionally Omitted]
    - 27 -

Exhibit 10.1

EXHIBIT D-1

PRELIMINARY PROJECT BUDGET 

[Intentionally Omitted]
    - 28 -

Exhibit 10.1

EXHIBIT D-2

FINAL PROJECT BUDGET 

[Intentionally Omitted]
    - 29 -

Exhibit 10.1

EXHIBIT D-3

PREDEVELOPMENT COSTS BUDGET 

[Intentionally Omitted]
    - 30 -

Exhibit 10.1

EXHIBIT E-1

COMMERCE PROJECT SCHEDULE

[Intentionally Omitted]
    - 31 -

Exhibit 10.1

EXHIBIT E-2

8027 PROJECT SCHEDULE

[Intentionally Omitted]
    - 32 -

Exhibit 10.1

EXHIBIT F

DEVELOPMENT, CONSTRUCTION MANAGEMENT and TI FEES

[Intentionally Omitted]
    - 33 -

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