Document:

Exhibit 10.1

 

BEHRINGER HARVARD MULTIFAMILY REIT I, INC.

 

FOURTH AMENDED AND RESTATED ADVISORY MANAGEMENT AGREEMENT

 

This FOURTH AMENDED AND
RESTATED ADVISORY MANAGEMENT AGREEMENT (this “Agreement”),
is made and entered as of the 14th day of June,
2010 and effective as of the 1st day of July,
2010, by and between BEHRINGER HARVARD MULTIFAMILY REIT I, INC., a
Maryland corporation (the “Company”), and
BEHRINGER HARVARD MULTIFAMILY ADVISORS I, LLC, a Texas limited liability
company (the “Advisor”).

 

W I T N E S S E T H

 

WHEREAS, the Company and the Advisor previously entered into that certain Third
Amended and Restated Advisory Management Agreement dated January 29, 2010
(the “Original  Agreement”);

 

WHEREAS, the Company
and the Advisor desire to amend the Original Agreement to, among other things,
modify the calculation of the asset management fees earned by the Advisor;

 

WHEREAS, the Company
is issuing shares of its common stock, par value $0.0001, to the public, which
shares are registered with the Securities and Exchange Commission and may
subsequently issue additional securities;

 

WHEREAS, the Company
has been formed to acquire and operate a diverse portfolio of real estate
assets at all stages of development with a focus on high quality multifamily,
student housing, age-restricted properties, commercial properties, such as
office buildings, shopping centers, business and industrial parks,
manufacturing facilities, warehouses and distribution facilities and motel and
hotel properties, originate or invest in mortgage, bridge, mezzanine or other
loans and Section 1031 tenant-in-common interests, or in entities that
make investments similar to the foregoing, and make investments with joint
venture partners;

 

WHEREAS, the Company
currently qualifies as a real estate investment trust and invests its funds in
investments permitted by the terms of the Company’s Articles of Incorporation
and Sections 856 through 860 of the Internal Revenue Code;

 

WHEREAS, the Company
desires to avail itself of the experience, sources of information, advice,
assistance and certain facilities available to the Advisor and to have the
Advisor undertake the duties and responsibilities hereinafter set forth, on
behalf of, and subject to the supervision of, the Board, all as provided
herein; and

 

WHEREAS, the Advisor
is willing to undertake to provide these services, subject to the supervision
of the Board, on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in
consideration of the foregoing and of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereby amend and
restate the Original Agreement as follows:

 

 

ARTICLE ONE

 

DEFINITIONS

 

The following defined terms
used in this Agreement shall have the meanings specified below:

 

Acquisition Expenses.  A non-accountable acquisition expense
reimbursement in the amount of: (i) 0.25% of the funds paid for purchasing
an Asset, including any debt attributable to the Asset, plus 0.25% of the funds
budgeted for development, construction or improvement in the case of Assets
that we acquire and intend to develop, construct or improve or (ii) 0.25%
of the funds advanced in respect of a loan or other investment.   In addition, to the extent the Advisor
directly provides services formerly provided or usually provided by third
parties, including without limitation accounting services related to the
preparation of audits required by the Securities and Exchange Commission,
property condition reports, title services, title insurance, insurance
brokerage or environmental services related to the preparation of environmental
assessments in connection with a prospective or completed investment (the “Additional
Services”), the direct employee costs and burden to the Advisor of providing
the Additional Services shall be Acquisition Expenses.  Acquisition Expenses also include any
investment-related expenses due to third parties in the case of a completed
investment, including, but not limited to legal fees and expenses, travel and
communications expenses, costs of appraisals, accounting fees and expenses,
third-party brokerage or finder’s fees, title insurance, premium expenses and
other closing costs.  Acquisition
Expenses also include any payments made to (i) a prospective seller of an
asset, (ii) an agent of a prospective seller of an asset, or (iii) a
party that has the right to control the sale of an asset intended for
investment by the Company that are not refundable and that are not ultimately
applied against the purchase price for such asset (“Non-Refundable Payments”).

 

Acquisition Fees.  Any and all fees and commissions, exclusive
of Acquisition Expenses but including the Acquisition and Advisory Fees, paid
by any Person to any other duly qualified and licensed Person (including any
fees or commissions paid by or to any duly qualified and licensed Affiliate of
the Company or the Advisor) in connection with making or investing in Mortgages
or other loans or the purchase, development or construction of an Asset,
including, without limitation, real estate commissions, selection fees,
investment banking fees, third party seller’s fees (to the extent the Company
agrees to pay any such fees as part of an acquisition), Development Fees,
Construction Fees, non-recurring management fees, loan fees, points or any
other fees of a similar nature. Excluded shall be Development Fees and
Construction Fees paid to any Person not affiliated with the Sponsor in
connection with the actual development and construction of any Property.

 

Acquisition and Advisory Fees.  The fees payable to the Advisor pursuant to Section 3.01(b).

 

Advisor.  Behringer Harvard Multifamily Advisors I,
LLC, a Texas limited liability company, any successor advisor to the Company,
or any Person to which Behringer Harvard Multifamily Advisors I, LLC or any
successor advisor subcontracts all or substantially all of its functions.

 

Affiliate or Affiliated.  As to any Person, (i) any Person
directly or indirectly owning, controlling or holding, with the power to vote,
10% or more of the outstanding voting securities of such other Person; (ii) any
Person 10% or more of whose outstanding voting securities are directly or
indirectly owned, controlled or held, with power to vote, by such other Person;
(iii) any Person, directly or indirectly, controlling, controlled by, or
under common control with such other Person; (iv) any executive officer,
director, trustee or general partner of such other Person; and (v) any
legal entity for which such Person acts as an executive officer, director,
trustee or general partner.

 

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Applicable Asset Management Fee
Percentage.  A
percentage that (i) prior to July 1, 2010 shall be equal to 0.75%, (ii) thereafter
shall be equal to 0.50%, provided that the percentage shall increase to 0.75%
commencing on the first day of the first quarter following two consecutive
fiscal quarters during which the Company’s Modified Funds From Operations equal
or exceed 80% of the Coverage Amount; provided further that the percentage
shall increase to 1.0% commencing on the first day of the first quarter
following two consecutive fiscal quarters during which the Company’s Modified
Funds From Operations for each such fiscal quarter equal or exceed the Coverage
Amount.  Once the Applicable Asset
Management Fee Percentage shall become 1.0% it shall remain 1.0% until the
Advisor has earned, since July 1, 2010, Asset Management Fees under this
Agreement equal to the amount of Asset Management Fees the Advisor would have
earned if the Applicable Asset Management Fee Percentage had been 0.75% every
day since July 1, 2010, whereupon the percentage shall return to 0.75%
upon the first day following the month following such event.  Once the Applicable Asset Management Fee
Percentage increases at any time after July 1, 2010 to 0.75% or 1.0%, as
the case may be, it shall not decrease from the highest of such amounts except
as described in the preceding sentence, regardless of the Company’s Modified
Funds From Operations in any subsequent period.

 

Articles of Incorporation.  The Articles of Incorporation of the Company
filed with the Maryland State Department of Assessments and Taxation in
accordance with the Maryland General Corporation Law, as amended or restated
from time to time.

 

Assets.  Properties, Mortgages, loans and other direct
or indirect investments (other than investments in bank accounts, money market
funds or other current assets) owned by the Company, directly or indirectly
through one or more of its Affiliates or Joint Ventures or through other
investment interests.

 

Asset Management Fee.  The fee payable to the Advisor for day-to-day
professional management services in connection with the Company and its
investments in Assets pursuant to Section 3.01(a) of this Agreement.

 

Average Invested Assets.  For a specified period, the average of the
aggregate book value of the Assets before deduction for depreciation, bad debts
or other non-cash reserves, computed by taking the average of the values at the
end of each month during the period.

 

Board.  The Board of Directors of the Company.

 

Bylaws.  The bylaws of the Company, as the same are in
effect from time to time.

 

Change of Control.  Any (i) event (including, without
limitation, issue, transfer or other disposition of Common Shares of capital
stock of the Company or equity interests in the Operating Partnership, merger,
share exchange or consolidation) after which any “person” (as that term is used
in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Exchange Act), directly or
indirectly, of securities of the Company or the Operating Partnership
representing greater than 50% of the combined voting power of the Company’s or
the Operating Partnership’s then outstanding securities, respectively;
provided, that, a Change of Control shall not be deemed to occur as a result of
any widely distributed public offering of the Common Shares or (ii) direct
or indirect sale, transfer, conveyance or other disposition (other than
pursuant to clause (i)), in one or a series of related transactions, of all or
substantially all of the properties or assets of the Company or the Operating
Partnership, taken as a whole, to any “person” (as that term is used in
Sections 13(d) and 14(d) of the Exchange Act).

 

Code.  Internal Revenue Code of 1986, as amended
from time to time, or any successor statute thereto. Reference to any provision
of the Code shall mean the provision as in effect from time to time, as the 

 

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same may be amended, and any
successor provision thereto, as interpreted by any applicable regulations as in
effect from time to time.

 

Common Shares.  Any shares of the Company’s common stock, par
value $0.0001 per share.

 

Company.  Behringer Harvard Multifamily REIT I, Inc.,
a corporation organized under the laws of the State of Maryland.  Unless the context clearly indicates
otherwise, references to the Company shall include its direct and indirect
subsidiaries, including the Operating Partnership.

 

Competitive Real Estate
Commission.  A real
estate or brokerage commission paid or, if no commission is paid, the amount
that customarily would be paid for the purchase or sale of an Asset that is
reasonable, customary, and competitive in light of the size, type and location
of the Asset (as determined by the Board, including a majority of the
Independent Directors).

 

Construction Fee.  A fee or other remuneration for acting as
general contractor and/or construction manager to construct improvements,
supervise and coordinate projects or to provide major repairs or
rehabilitations on a Property.

 

Contract Purchase Price.  The amount (i) actually paid and/or
budgeted in respect of the purchase, development, construction or improvement
of a Property, (ii) of funds advanced with respect to a Mortgage or other
loan or (iii) actually paid and/or budgeted in respect to the purchase of
other Assets, in each case exclusive of Acquisition Fees and Acquisition Expenses
but including any debt attributable to such acquired Assets.

 

Convertible Shares.  Any shares of the Company’s convertible
stock, par value $0.0001 per share.

 

Cost of Investment.  For each Asset, (i) with respect to an
Asset wholly owned by the Company or any wholly owned subsidiary, the Fully
Loaded Cost, and (ii) in the case of an Asset owned by any Joint Venture
or in some other manner in which the Company is a co-venturer or partner or
otherwise a co-owner, (A) the Fully Loaded Cost if the Company (or any
subsidiary) controls the Asset; owns a majority interest, directly or
indirectly, in the Asset; or provides a substantial amount of services in the
acquisition, development, or management of the Asset (as determined by a
majority of the Independent Directors) or (B) the portion of the Fully
Loaded Cost that is attributable to the Company’s investment in the Joint
Venture or other interest in such Asset if the Company does not control, own a
majority of, or provide substantial services in the acquisition, development,
or management of, the Asset.

 

Coverage Amount.  An amount of Modified Funds From Operations
per share for a fiscal quarter of the Company of fifteen cents ($0.15).

 

Dealer Manager.  Behringer Securities LP, an Affiliate of the
Advisor, or such Person selected by the Board to act as the dealer manager for
an Offering.

 

Development
Fee.  A fee for the packaging of an
Asset, including the negotiation and approval of plans, and any assistance in
obtaining zoning and necessary variances and financing for a specific
development Property, either initially or at a later date.

 

Director.  A member of the Board.

 

Distributions.  Any dividends or other distributions of money
or other property by the Company to holders of Common Shares, including
distributions that may constitute a return of capital for federal 

 

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income tax purposes but
excluding distributions that constitute the redemption of any Common Shares and
excluding distributions on any Common Shares before their redemption.

 

Exchange Act.  The Securities
Exchange Act of 1934, as amended from time to time, or any successor statute
thereto.  Reference to any provision of
the Exchange Act shall mean such provision as in effect from time to time, as
the same may be amended, and any successor provision thereto, as interpreted by
any applicable regulations as in effect from time to time.

 

Fully Loaded Cost.  The Contract Purchase Price of an Asset at
the time of acquisition (exclusive of closing costs), plus the amount actually
paid and/or budgeted for the development, construction or improvement of the
Asset, inclusive of expenses related thereto, plus the amount of any subsequent
debt attributable to such Asset.

 

Gross Proceeds.  The aggregate purchase price of all Common
Shares sold for the account of the Company through an Offering, without
deduction for Selling Commissions, volume discounts, any marketing support and
due diligence expense reimbursement or Organization and Offering Expenses.  For the purpose of computing Gross Proceeds,
the purchase price of any Common Share for which reduced Selling Commissions
are paid to the Dealer Manager or a Soliciting Dealer (where net proceeds to
the Company are not reduced) shall be deemed to be the full amount of the
offering price per Common Share pursuant to the Prospectus for the Offering
without reduction.

 

Independent Director.  A Director who is not on the date of
determination, and within the last two years from the date of determination has
not been, directly or indirectly associated with the Sponsor or the Advisor by
virtue of (i) ownership of an interest in the Sponsor, the Advisor or any
of their Affiliates, other than the Company, (ii) employment by the
Sponsor, the Company, the Advisor or any of their Affiliates, (iii) service
as an officer or director of the Sponsor, the Advisor or any of their
Affiliates, other than as a Director of the Company, (iv) performance of
services for the Company, other than as a Director of the Company, (v) service
as a director or trustee of more than three real estate investment trusts
organized by the Sponsor or advised by the Advisor, or (vi) maintenance of
a material business or professional relationship with the Sponsor, the Advisor
or any of their Affiliates. 
Notwithstanding the foregoing, and consistent with (v) above,
serving as a director of or receiving director fees from or owning an interest
in a REIT or other real estate program organized by the Sponsor or advised or
managed by the Advisor or its Affiliates shall not, by itself, cause a Director
to be deemed associated with the Sponsor or the Advisor.  A business or professional relationship is
considered material if the aggregate annual gross revenue derived by the
Director from the Sponsor, the Advisor and their Affiliates (excluding fees for
serving as a director of the Company or other REIT or real estate program
organized or advised or managed by the Advisor or its Affiliates) exceeds five
percent of either the Director’s annual gross income during either of the last
two years or the Director’s net worth on a fair market value basis. An indirect
association with the Sponsor or the Advisor shall include circumstances in
which a Director’s spouse, parent, child, sibling, mother- or father-in-law, son-
or daughter-in-law, or brother- or sister-in-law is or has been associated with
the Sponsor, the Advisor, any of their Affiliates, or the Company.

 

Initial Investment.  Initial Investment shall have the meaning
ascribed to such term in Section 6.13.

 

Intellectual
Property Rights.  All rights,
titles and interests, whether foreign or domestic, in and to any and all trade
secrets, confidential information rights, patents, invention rights,
copyrights, service marks, trademarks, know-how, or similar intellectual
property rights and all applications and rights to apply for such rights, as
well as any and all moral rights, rights of privacy, publicity and similar
rights and license rights of any type under the laws or regulations of any
governmental, regulatory, or judicial authority, foreign or domestic and all
renewals and extensions thereof.

 

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Joint Ventures.  A legal organization formed to provide for
the sharing of the risks and rewards in an enterprise co-owned and operated for
mutual benefit by two or more business partners and established to acquire or
hold Assets.

 

Listing or Listed.  The
filing of a Form 8-A to register any class of the Company’s securities on
a national securities exchange and an original listing application related
thereto; provided, that the Shares shall not be deemed to be Listed until
trading in the Shares shall have commenced on the relevant national securities
exchange.

 

Modified Funds From Operations.  With respect to any fiscal quarter, the
Company’s funds from operations, or FFO (as defined by the National Association
of Real Estate Investment Trusts) during such quarter, plus Acquisition
Expenses, impairment charges and adjustments to fair value for derivatives not
qualifying for hedge accounting during such quarter.  However, if a trade or industry group
promulgates a different definition of Modified Funds From Operations applicable
to listed or non-listed REITs that the Company adopts in its periodic reports
filed with the Securities and Exchange Commission, Modified Funds From
Operations shall have the meaning of such different definition.

 

Mortgages.  In connection with mortgage financing
provided, invested in or purchased by the Company, all of the notes, deeds of
trust, security interests or other evidence of indebtedness or obligations,
which are secured or collateralized by Real Property owned by the borrowers
under such notes, deeds of trust, security interests or other evidence of
indebtedness or obligations.

 

NASAA REIT Guidelines.  The Statement of
Policy Regarding Real Estate Investment Trusts adopted by the North American
Securities Administrators Association on May 7, 2007, and in effect on the
date hereof.

 

Net Income. For any
period, the Company’s total revenues applicable to that period, less the total
expenses applicable to the period other than additions to reserves for
depreciation, bad debts or other similar non-cash reserves and excluding any
gain from the sale of the Assets.

 

Offering. Any public
offering of Shares pursuant to an effective registration statement filed under
the Securities Act, other than a public offering of Shares under a distribution
reinvestment plan.

 

Operating Partnership.  Behringer Harvard
Multifamily OP I LP, a Delaware limited partnership, through which the Company
may own Assets.

 

Organization
and Offering Expenses.  Any
and all costs and expenses incurred by and to be paid by the Company in
connection with an Offering, the formation of the Company, and including the
qualification and registration of the Offering and the marketing and
distribution of its Shares, including, without limitation:  total underwriting and brokerage discounts
and commissions (including fees of the underwriters’ attorneys); expenses for
printing, engraving, amending registration statements and supplementing
prospectuses; mailing and distribution costs; salaries of employees while
engaged in sales activity, such as preparing supplemental sales literature;
telephone and other telecommunication costs; all advertising and marketing
expenses, including the costs related to investor and broker-dealer meetings;
charges of transfer agents, registrars, trustees, escrow holders, depositories
and experts; filing, registration and qualification fees and taxes relating to the
Offering under federal and state laws; and accountants’ and attorneys’ fees.

 

Person.  An individual, corporation, association,
business trust, estate, trust, partnership, limited liability company or other
legal entity.

 

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Preferred Shares.  Any shares of the Company’s preferred stock,
par value $0.0001 per share.

 

Property or Properties.  As the context requires, any, or all,
respectively, of the Real Property acquired by the Company, either directly or
indirectly (whether through Joint Ventures or other investment interests,
regardless of whether the Company consolidates the financial results of these
entities).

 

Proprietary Property.  All modeling algorithms,
tools, computer programs, know-how, methodologies, processes, technologies,
ideas, concepts, skills, routines, subroutines, operating instructions and
other materials and aides used in performing the duties set forth in Section 2.02
that relate to advice regarding current and potential Assets, and all
modifications, enhancements and derivative works of the foregoing.

 

Prospectus. Prospectus
has the meaning set forth in Section 2(a)(10) of the Securities Act,
including a preliminary prospectus, an offering circular as described in Rule 253
of the General Rules and Regulations under the Securities Act, or, in the
case of an intrastate offering, any document by whatever name known, utilized
for the purpose of offering and selling securities of the Company.

 

Real Property or Real Estate.  Land, rights in land (including leasehold
interests), and any buildings, structures, improvements, furnishings, fixtures
and equipment located on or used in connection with land and rights or
interests in land.

 

REIT.  A corporation, trust, association or other
legal entity (other than a real estate syndication) that is engaged primarily
in investing in interests in Real Estate (including fee ownership and leasehold
interests) or in loans secured by Real Estate or both in accordance with
Sections 856 through 860 of the Code.

 

Sale or Sales.  (i) Any transaction or series of
transactions whereby: (A) the Company or the Operating Partnership
directly or indirectly (except as described in other subsections of this
definition) sells, grants, transfers, conveys, or relinquishes its ownership of
any Property or portion thereof, including the lease of any Property consisting
of a building only, and including any event with respect to any Property which
gives rise to a significant amount of insurance proceeds or condemnation awards;
(B) the Company or the Operating Partnership directly or indirectly
(except as described in other subsections of this definition) sells, grants,
transfers, conveys, or relinquishes its ownership of all or substantially all
of the interest of the Company or the Operating Partnership in any Joint
Venture in which it is a co-venturer or partner; (C) any Joint Venture
directly or indirectly (except as described in other subsections of this
definition) in which the Company or the Operating Partnership as a co-venturer
or partner sells, grants, transfers, conveys, or relinquishes its ownership of
any Property or portion thereof, including any event with respect to any
Property which gives rise to insurance claims or condemnation awards; (D) the
Company or the Operating Partnership directly or indirectly (except as
described in other subsections of this definition) sells, grants, conveys or
relinquishes its interest in any Mortgage or other loan or portion thereof
(including with respect to any Mortgage or other loan, all payments thereunder
or in satisfaction thereof other than regularly scheduled interest payments of
amounts owed pursuant to the Mortgage or other loan) and any event with respect
to a Mortgage or other loan which gives rise to a significant amount of
insurance proceeds or similar awards; or (E) the Company or the Operating
Partnership directly or indirectly (except as described in other subsections of
this definition) sells, grants, transfers, conveys, or relinquishes its
ownership of any other Asset not previously described in this definition or any
portion thereof, but (ii) not including any transaction or series of
transactions specified in clause (i) (A) through (E) above in
which the proceeds of such transaction or series of transactions are reinvested
in one or more Assets within 180 days thereafter.

 

Securities
Act.  The Securities Act of 1933, as
amended from time to time, or any successor statute thereto.  Reference to any provision of the Securities
Act shall mean the provision as in effect from time 

 

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to time, as the same may be
amended, and any successor provision thereto, as interpreted by any applicable
regulations as in effect from time to time.

 

Selling
Commissions.  Any and all
commissions payable to underwriters, dealer managers or other broker-dealers in
connection with the sale of Shares, including, without limitation, commissions
payable to Behringer Securities LP.

 

Shares.  Shares of stock of the Company of any class
or series, including Common Shares, Preferred Shares or Convertible Shares.

 

Soliciting Dealers.  Broker-dealers who are members of the
Financial Industry Regulatory Authority, or that are exempt from broker-dealer
registration, and who, in either case, have executed participating broker or
other agreements with the Dealer Manager to sell Shares.

 

Sponsor.  Sponsor has the meaning ascribed to such term
in the Articles of Incorporation.

 

Stockholders.  The record holders of the Company’s Shares as
maintained in the books and records of the Company or its transfer agent.

 

Termination Date.  The date of termination of this Agreement.

 

Texas Tax Code.  The Texas Tax Code as amended by Texas H.B.
3, 79th Leg., 3rd C.S.
(2006).  Reference to any provision of
the Texas Tax Code Act shall mean the provision as in effect from time to time,
as the same may be amended, and any successor provision thereto, as interpreted
by any applicable administrative rules as in effect from time to time.

 

Total
Operating Expenses. All costs and expenses paid or incurred by
the Company, as determined under generally accepted accounting principles,
which are in any way related to the operation of the Company or to Company
business, including the Asset Management Fee, but excluding (i) the
expenses of raising capital such as Organization and Offering Expenses, legal,
audit, accounting, underwriting, brokerage, listing, registration, and other
fees, printing and other expenses and tax incurred in connection with the
issuance, distribution, transfer, registration and Listing of the Shares, (ii) interest
payments, (iii) taxes, (iv) non-cash expenditures such as
depreciation, amortization and bad debt reserves, (v) Acquisition Fees and
Acquisition Expenses, (vi) real estate commissions on the Sale of Assets, and
(vii) other fees and expenses connected with the acquisition, disposition,
management and ownership of real estate interests, mortgage loans or other
property (including the costs of foreclosure, insurance premiums, legal
services, maintenance, repair and improvement of property).

 

Value of Investment.  For each Asset, if available, (i) with
respect to an Asset wholly owned by the Company or any wholly owned subsidiary,
the Asset’s value established by the most recent independent valuation report
(without reduction for depreciation, bad debts or other non-cash reserves), and
(ii) in the case of an Asset owned by any Joint Venture or in some other
manner in which the Company is a co-venturer or partner or otherwise a
co-owner, (A) the Asset’s value established by the most recent independent
valuation report (without reduction for depreciation, bad debts or other
non-cash reserves) if the Company (or any subsidiary) controls the Asset; owns
a majority interest, directly or indirectly, in the Asset; or provides a
substantial amount of services in the acquisition, development, or management
of the Asset (as determined by a majority of the Independent Directors) or (B) the
portion of the Asset’s value established by the most recent independent
valuation report (without reduction for depreciation, bad debts or other
non-cash reserves) that is attributable to the Company’s investment in the
Joint Venture or other interest in such Asset if the Company does not control,
own a majority of, or provide substantial services in the acquisition,
development, or management of, the Asset. 
Nothing in this definition is intended to 

 

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obligate the Advisor to
obtain independent valuations at any point in time beyond those specified in
the Company’s Prospectus.

 

ARTICLE II

 

THE
ADVISOR

 

2.01         Appointment.  The Company hereby appoints the Advisor to
serve as its advisor on the terms and conditions set forth in this Agreement,
and the Advisor hereby accepts such appointment.

 

2.02         Duties of the Advisor.  The Advisor shall be deemed to be in a
fiduciary relationship to the Company and its Stockholders.  Subject to Section 2.08, the Advisor
undertakes to use its commercially reasonable best efforts to present to the
Company potential investment opportunities consistent with the investment
objectives and policies of the Company as determined and adopted from time to
time by the Board.  In performing its
duties, subject to the supervision of the Board and consistent with the
provisions of the Company’s most recent Prospectus for Shares, the Articles of
Incorporation and Bylaws, the Advisor shall, either directly or by engaging a
duly qualified and licensed Affiliate of the Advisor or other duly qualified
and licensed Person:

 

(a)           provide the Company with
research and economic and statistical data in connection with the Assets and
investment policies;

 

(b)           manage the Company’s
day-to-day operations and perform and supervise the various administrative
functions reasonably necessary for the management and operations of the
Company;

 

(c)           maintain and preserve the
books and records of the Company, including stock books and records reflecting
a record of the Stockholders and their ownership of the Company’s Shares

 

(d)           investigate, select, and, on
behalf of the Company, engage and conduct business with the duly qualified and
licensed Persons as the Advisor deems necessary to the proper performance of
its obligations hereunder, including but not limited to duly qualified and
licensed consultants, accountants, correspondents, lenders, technical advisors,
attorneys, brokers, underwriters, corporate fiduciaries, escrow agents,
depositaries, custodians, agents for collection, insurers, insurance agents,
banks, builders, developers, property owners, mortgagors, property management
companies, transfer agents and any and all agents for any of the foregoing,
including duly qualified and licensed Affiliates of the Advisor, and duly
qualified and licensed Persons acting in any other capacity deemed by the Advisor
necessary or desirable for the performance of any of the foregoing services,
including but not limited to entering into contracts in the name of the Company
with any of the foregoing;

 

(e)           consult with the officers
and the Board and assist the Board in the formulation and implementation of the
Company’s financial policies, and, as necessary, furnish the Board with advice
and recommendations with respect to the making of investments consistent with
the investment objectives and policies of the Company and in connection with
any borrowings proposed to be undertaken by the Company;

 

(f)            subject to the provisions of
Sections 2.02(h) and 2.03 hereof, (i) locate, analyze and select
potential investments in Assets, (ii) structure and negotiate the terms
and conditions of transactions pursuant to which investment in Assets will be
made; (iii) make investments in 

 

9

 

Assets on behalf of the
Company or the Operating Partnership in compliance with the investment objectives
and policies of the Company; (iv) arrange for financing and refinancing
and make other changes in the asset or capital structure of, and dispose of,
reinvest the proceeds from the sale of, or otherwise deal with the investments
in, Assets; and (v) enter into leases of Property and service contracts
for Assets with duly qualified and licensed Persons and, to the extent
necessary, perform all other operational functions for the maintenance and
administration of the Assets, including the servicing of Mortgages;

 

(g)           provide the Board with
periodic reports regarding prospective investments in Assets;

 

(h)           obtain the prior approval of
the Board (including a majority of all Independent Directors) for any and all
investments in Assets;

 

(i)            negotiate on behalf of the
Company with banks or lenders for loans to be made to the Company, negotiate on
behalf of the Company with investment banking firms and broker-dealers, and
negotiate private sales of Shares and other securities of the Company or obtain
loans for the Company, as and when appropriate, but in no event in such a way
so that the Advisor shall be acting as broker-dealer or underwriter; and
provided, further, that any fees and costs payable to third parties incurred by
the Advisor in connection with the foregoing shall be the responsibility of the
Company;

 

(j)            obtain reports (which may be
prepared by or for the Advisor or its Affiliates), where appropriate,
concerning the value of investments or contemplated investments of the Company
in Assets;

 

(k)           from time to time, or at any
time reasonably requested by the Board, make reports to the Board of its
performance of services to the Company under this Agreement;

 

(l)            assist the Company in
arranging for all necessary cash management services;

 

(m)          deliver to or maintain on
behalf of the Company copies of all appraisals obtained in connection with the
investments in Assets;

 

(n)           upon request of the Company,
act, or obtain the services of duly qualified and licensed others to act, as
attorney-in-fact or agent of the Company in making, acquiring and disposing of
Assets, disbursing, and collecting the funds, paying the debts and fulfilling
the obligations of the Company and retaining counsel or other advisors to
assist in handling, prosecuting and settling any claims of the Company,
including foreclosing and otherwise enforcing mortgage and other liens and
security interests comprising any of the Assets;

 

(o)           supervise the preparation
and filing and distribution of returns and reports to governmental agencies and
to Stockholders and other investors and act on behalf of the Company;

 

(p)           provide office space,
equipment and duly qualified and licensed personnel as required for the
performance of the foregoing services as Advisor;

 

(q)           assist the Company in
preparing all reports and returns required by the Securities and Exchange
Commission, Internal Revenue Service and other state or federal
governmental agencies; and

 

10

 

(r)            do all things necessary to
assure its ability to render the services described in this Agreement.

 

2.03         Authority of Advisor.

 

(a)           Pursuant to the terms of
this Agreement (including the restrictions included in this Section 2.03
and in Section 2.06), and subject to the continuing and exclusive authority
of the Board over the management of the Company, the Board hereby delegates to
the Advisor the authority to (i) locate, analyze and select investment
opportunities, (ii) structure the terms and conditions of transactions
pursuant to which investments will be made or acquired for the Company or the
Operating Partnership, (iii) acquire Properties, make and acquire
Mortgages and other loans and invest in other Assets in compliance with the
investment objectives and policies of the Company, (iv) arrange for financing
or refinancing of Assets, (v) enter into leases for the Properties and
service contracts for the Assets with duly qualified and licensed
non-affiliated and Affiliated Persons, including oversight of non-affiliated
and Affiliated Persons that perform property management, acquisition, advisory,
disposition or other services for the Company, (vi) oversee duly qualified
and licensed property managers and other Persons who perform services for the
Company, and (vii) arrange for, or provide, accounting and other
record-keeping functions at the Asset level.

 

(b)           Notwithstanding the
foregoing, any investment in Assets by the Company or the Operating Partnership
(as well as any financing acquired by the Company or the Operating Partnership
in connection with the investment), will require the prior approval of the
Board (including a majority of the Independent Directors).

 

(c)           The prior approval of a
majority of the Independent Directors and a majority of the Board not otherwise
interested in the transaction will be required for each transaction with the
Advisor or its Affiliates.

 

(d)           If a transaction requires
approval by the Board, the Advisor will deliver to the Directors all documents
required by them to properly evaluate the proposed transaction.

 

The Board may, at any time
upon the giving of notice to the Advisor, modify or revoke the authority set
forth in this Section 2.03. If and to the extent the Board so modifies or
revokes the authority contained herein, the Advisor shall henceforth submit to
the Board for prior approval the proposed transactions involving investments in
Assets as thereafter require prior approval, provided however, that the
modification or revocation shall be effective upon receipt by the Advisor and
shall not be applicable to investment transactions to which the Advisor has
committed the Company prior to the date of receipt by the Advisor of the
notification.

 

2.04         Bank Accounts.  The Advisor may establish and maintain one or
more bank accounts in its own name for the account of the Company or in the
name of the Company and may collect and deposit into any account or accounts,
and disburse from any account or accounts, any money on behalf of the Company,
under the terms and conditions as the Board may approve, provided that no funds
of the Company or the Operating Partnership shall be commingled nor shall any
of such funds be commingled with the funds of the Advisor; and the Advisor
shall from time to time render accountings of the collections and payments to
the Board, its Audit Committee and the auditors of the Company.

 

2.05         Records; Access.  The Advisor shall maintain records of all its
activities hereunder and make the records available for inspection by the Board
and by counsel, auditors and authorized agents of the 

 

11

 

Company, at any time or from
time to time during normal business hours. 
The Advisor shall at all reasonable times have access to the books and
records of the Company.

 

2.06         Limitations on Activities.  Anything else in this Agreement to the
contrary notwithstanding, the Advisor shall refrain from taking any action
which, in its sole judgment made in good faith, would (a) adversely affect
the status of the Company as a REIT, (b) subject the Company to regulation
under the Investment Company Act of 1940, as amended, or (c) violate any
law, rule, regulation or statement of policy of any governmental body or agency
having jurisdiction over the Company, the Shares or any of the Company’s
securities, or otherwise not be permitted by the Articles of Incorporation or
Bylaws, except if the action shall be ordered by the Board, in which case the
Advisor shall notify promptly the Board of the Advisor’s judgment of the
potential impact of the action and shall refrain from taking the action until
it receives further clarification or instructions from the Board.  In such event the Advisor shall have no
liability for acting in accordance with the specific instructions of the Board
so given.  The Advisor, its directors,
officers, employees and stockholders, and the directors, officers, employees
and stockholders of the Advisor’s Affiliates shall not be liable to the Company
or to the Board or Stockholders for any act or omission by the Advisor, its
directors, officers, employees or stockholders, or for any act or omission of
any Affiliate of the Advisor, its directors, officers or employees or
stockholders except as provided in Section 5.02 of this Agreement.

 

2.07         Relationship with Directors.  Directors, officers and employees of the Advisor
or an Affiliate of the Advisor may serve as Directors, officers or employees of
the Company, except that no director, officer or employee of the Advisor or its
Affiliates who also is a Director shall receive any compensation from the
Company for serving as a Director other than reasonable reimbursement for
travel and related expenses incurred in attending meetings of the Board.

 

2.08         Other Activities of the Advisor.  Nothing herein contained shall prevent the
Advisor or its Affiliates from engaging in other activities, including, without
limitation, the rendering of advice to other Persons (including other REITs)
and the management of other programs advised, sponsored or organized by the
Advisor or its Affiliates; nor shall this Agreement limit or restrict the right
of any director, officer, employee, or stockholder of the Advisor or its
Affiliates to engage in any other business or to render services of any kind to
any other Person.  The Advisor may, with
respect to any investment in which the Company is a participant, also render
advice and service to each and every other participant therein.  The Advisor shall report to the Board the
existence of any condition or circumstance, existing or anticipated, of which
it has knowledge, which creates or could create a conflict of interest between
the Advisor’s obligations to the Company and its obligations to or its interest
in any other Person.  The Advisor or its
Affiliates shall promptly disclose to the Board knowledge of such condition or
circumstance.  The Advisor shall inform
the Board at least quarterly of the investment opportunities that have been
offered to other programs with similar investment objectives sponsored by the
Sponsor, Advisor, Director or their Affiliates. 
If the Sponsor, Advisor, Director or Affiliates thereof have sponsored
other investment programs with similar investment objectives which have
investment funds available at the same time as the Company, it shall be the
duty of the Board (including the Independent Directors) to adopt the method set
forth in the Company’s most recent Prospectus for its Shares or another
reasonable method by which investments are to be allocated to the competing
investment entities and to use their best efforts to apply such method fairly
to the Company.

 

2.09         Payment of
Certain Organization and Offering Expenses.  The Company shall pay directly all
Organization and Offering Expenses considered underwriting compensation by the
Financial Industry Regulatory Authority, or FINRA.  Such payments, other than Selling Commissions
and the dealer manager fee, shall apply towards the limit on Organization and
Offering Expenses reimbursable by the Company to the Advisor pursuant to Section 3.02(a)(i) below.

 

12

 

ARTICLE III

 

COMPENSATION
AND REIMBURSEMENT OF SPECIFIED COSTS

 

3.01         Fees.

 

(a)           Asset Management Fee.  The Company shall pay the Advisor a monthly
Asset Management Fee on the 15th day of each
month in an amount equal to 1/12th of the
Applicable Asset Management Fee Percentage of the sum of, for each and every
Asset, the higher of the Cost of Investment or the Value of Investment;
provided, however, that no portion of such fee shall be earned or paid if such
portion would cause the total Asset Management Fees earned by the Advisor since
July 1, 2010 to exceed the amount of Asset Management Fees the Advisor
would have earned if the Applicable Asset Management Fee Percentage had been
0.75% every day since July 1, 2010. 
The Advisor, in its sole discretion, may waive, reduce or defer all or
any portion of the Asset Management Fee to which it would otherwise be
entitled.

 

(b)           Acquisition and Advisory
Fees.  The Company shall pay the
Advisor a fee in the amount of 1.75% of the Contract Purchase Price of each
Asset as Acquisition and Advisory Fees. 
The total of all Acquisition Fees and any Acquisition Expenses shall be
limited in accordance with the Articles of Incorporation.  Acquisition and Advisory Fees shall be paid
as follows: (1) for real property (including properties where
development/redevelopment is expected), at the time of acquisition, (2) for
development/redevelopment projects (other than the initial acquisition of the
real property), at the time a final budget is approved, and (3) for loans
and similar assets (including without limitation mezzanine loans), quarterly
based on the value of loans made or acquired. 
In the case of a development/redevelopment project subject to clause (2) above,
upon completion of the development/redevelopment project, the Advisor shall
determine the actual amounts paid.  To
the extent the amounts actually paid vary from the budgeted amounts on which
the Acquisition and Advisory Fee was initially based, the Advisor will pay or
invoice the Company for 1.75% of the budget variance such that the Acquisition
and Advisory Fee is ultimately 1.75% of amounts expended on such
development/redevelopment project.  The
Advisor, in its sole discretion, may waive, reduce or defer all or any portion
of the Acquisition and Advisory Fees to which it would otherwise be entitled.

 

(c)           [Intentionally Omitted]

 

(d)           Debt Financing Fee.  In the event of any debt financing obtained
by or for the Company (including any refinancing of debt), the Company will pay
to the Advisor a debt financing fee equal to one percent (1%) of the amount
available under the financing.  The Debt
Financing Fee includes the reimbursement of the specified cost incurred by the
Advisor of engaging third parties to source debt financing, and nothing herein
shall prevent the Advisor from entering fee-splitting arrangements with third
parties with respect to the Debt Financing Fee. 
The Advisor, in its sole discretion, may waive, reduce or defer all or
any portion of the Debt Financing Fee to which it would otherwise be entitled.

 

(e)           Development Fee.  If the Advisor or an Affiliate provides the
development services, the Company shall pay the Advisor Development Fees in
amounts that are usual and customary for comparable services rendered to
similar projects in the geographic market; provided, however, that a majority
of the Independent Directors must determine that such Development Fees are fair
and reasonable and on terms and conditions not less favorable than those
available from 

 

13

 

unaffiliated third
parties.  Development Fees will include
the reimbursement of the specified cost incurred by the Advisor of engaging
third parties for such services.  The
Advisor, in its sole discretion, may waive, reduce or defer all or any portion
of the Development Fee to which it would otherwise be entitled.  Notwithstanding the above, the Advisor may
engage (on behalf of the Company) third parties to provide development services
pursuant to its authority under Section 2.03 and pay such third parties
all applicable Development Fees.

 

3.02         Expenses.

 

(a)           In addition to the
compensation paid to the Advisor pursuant to Section 3.01 hereof and
except as noted in Section 2.09 above, the Company shall pay directly or
reimburse the Advisor for all of the costs and expenses paid or incurred by the
Advisor that are in any way related to the operations of the Company or the
business of the Company or the services the Advisor provides to the Company
pursuant to this Agreement, including, but not limited to:

 

(i)            Organization and Offering
Expenses, together with organization and offering expenses previously advanced
by the Advisor related to a prior offering of the Company’s shares, to the
extent not reimbursed out of proceeds from the prior offering (“Prior  Offering Additional
Reimbursement”); provided, however, that, within 60 days after the
end of the month in which an Offering terminates, the Advisor shall reimburse
the Company to the extent that Organization and Offering Expenses (other than
Selling Commissions and the dealer manager fee) together with the Prior
Offering Additional Reimbursement incurred by the Company exceed 1.5% of the
Gross Proceeds raised in the completed Offering, unless the terms of this
Agreement are amended upon renewal to provide otherwise in connection with
subsequent Offerings.

 

(ii)           Acquisition Fees and
Acquisition Expenses;

 

(iii)          the actual cost of goods,
services and materials used by the Company and obtained from Persons not
affiliated with the Advisor, other than Acquisition Expenses, including
brokerage fees paid in connection with the purchase and sale of Shares or other
securities;

 

(iv)          interest and other costs for
borrowed money, including discounts, points and other similar fees;

 

(v)           taxes and assessments on
income or property and taxes as an expense of doing business;

 

(vi)          costs associated with
insurance required in connection with the business of the Company or by the
Board;

 

(vii)         expenses of managing and
operating Assets owned by the Company, whether or not payable to an Affiliate
of the Advisor;

 

(viii)        all expenses in connection
with payments to the Board for attendance at meetings of the Board and
Stockholders;

 

(ix)           except as otherwise limited
by the Articles of Incorporation, expenses associated with Listing or with the
issuance and distribution of Shares and other securities of the Company, such
as selling commissions and fees, advertising expenses, taxes, legal and 

 

14

 

accounting fees and Listing
and registration fees, but excluding Organization and Offering Expenses;

 

(x)            expenses connected with
payments of Distributions in cash or otherwise made or caused to be made by the
Company to the Stockholders;

 

(xi)           expenses of organizing,
reorganizing, liquidating or dissolving the Company and the expenses of filing
or amending the Articles of Incorporation;

 

(xii)          expenses of any third party
transfer agent for the Shares and of maintaining communications with
Stockholders, including the cost of preparation, printing, and mailing annual
reports and other Stockholder reports, proxy statements and other reports
required by governmental entities;

 

(xiii)         personnel and related
employment costs incurred by the Advisor or its Affiliates in performing the
services described herein, including but not limited to reasonable salaries and
wages, benefits and overhead of all employees directly involved in the
performance of such services; provided, that no reimbursement shall be made for
costs of such employees of the Advisor or its Affiliates to the extent that
such employees perform services for which the Advisor receives a separate fee
other than in connection with the Advisor directly providing the Additional
Services; and

 

(xiv)        audit, accounting and legal
fees.

 

(b)           Expenses incurred by the
Advisor on behalf of the Company and payable pursuant to this Section 3.02
shall be reimbursed no less than quarterly to the Advisor within 60 days after
the end of each quarter.  The Advisor
shall prepare a statement documenting the expenses of the Company during each
quarter, and shall deliver the statement to the Company within 45 days after
the end of each quarter.

 

(c)           Notwithstanding anything to
the contrary in this Section 3.02, (i) the Advisor will be
responsible for paying all of the investment-related expenses that the Company
or the Advisor incurs that are due to third parties or in connection with
providing the Additional Services with respect to investments the Company does
not make other than Non-Refundable Payments and (ii) the Company shall be
responsible for paying directly or reimbursing the Advisor for all
Non-Refundable Payments.

 

3.03         Other Services.  Should the Board request that the Advisor or
any director, officer or employee thereof render services for the Company other
than set forth in Section 2.02, the services shall be separately
compensated at the rates and in the amounts as are agreed by the Advisor and
the Independent Directors, subject to the limitations contained in the Articles
of Incorporation, and shall not be deemed to be services pursuant to the terms
of this Agreement.

 

3.04         Reimbursement to the Advisor. The Company shall not
reimburse the Advisor for Total Operating Expenses to the extent that Total
Operating Expenses (including the Asset Management Fee), in the four
consecutive fiscal quarters then ended (the “Expense
Year”) exceed (the “Excess Amount”)
the greater of 2% of Average Invested Assets or 25% of Net Income for that
period of four consecutive fiscal quarters. Any Excess Amount paid to the
Advisor during a fiscal quarter shall be repaid to the Company. Reimbursement
of all or any portion of the Total Operating Expenses that exceed the
limitation set forth in the preceding sentence may, at the option of the
Advisor, be deferred without interest and may be reimbursed in any subsequent
Expense Year where such limitation would permit such reimbursement 

 

15

 

if the Total Operating
Expense were incurred during such period. Notwithstanding the foregoing, if there
is an Excess Amount in any Expense Year and the Independent Directors determine
that all or a portion of such excess was justified, based on unusual and
nonrecurring factors which they deem sufficient, the Excess Amount may be
reimbursed to the Advisor.  If the
Independent Directors determine such excess was justified, then, after the end
of any fiscal quarter of the Company for which there is an Excess Amount for
the 12 months then ended paid to the Advisor, the Advisor, at the direction of
the Independent Directors, shall cause such fact to be disclosed in the next
quarterly report of the Company or in a separate writing and sent to the
Stockholders within 60 days of such quarter end, together with an explanation
of the factors the Independent Directors considered in determining that such
Excess Amount was justified. Such determination shall be reflected in the
minutes of the meetings of the Board. The Company will not reimburse the
Advisor or its Affiliates for services for which the Advisor or its Affiliates
are entitled to compensation in the form of a separate fee. All figures used in
any computation pursuant to this Section 3.04 shall be determined in
accordance with generally accepted accounting principles applied on a
consistent basis.

 

ARTICLE IV

 

TERM
AND TERMINATION

 

4.01         Term; Renewal.  Subject to Section 4.02 hereof, this
Agreement shall continue in force until July 1, 2011.  Thereafter, this Agreement may be renewed for
an unlimited number of successive one-year terms upon mutual consent of the
parties.  It is the duty of the Board to
evaluate the performance of the Advisor annually before renewing the Agreement,
and each such renewal shall be for a term of no more than one year.

 

4.02         Termination.  This Agreement will automatically terminate
upon Listing.  This agreement also may be
terminated at the option of either party upon 60 days written notice without
cause or penalty (if termination is by the Company, then the termination shall
be upon the approval of a majority of the Independent Directors).  Notwithstanding the foregoing, the provisions
of Section 4.03, Article V and Article VI shall continue in full
force and effect and shall survive the termination or expiration of this
Agreement.

 

4.03         Payments to and Duties of Advisor
upon Termination.

 

(a)           After the Termination Date,
the Advisor shall not be entitled to compensation for further services
hereunder except it shall be entitled to and receive from the Company within 30
days after the effective date of the termination all unpaid reimbursements of
expenses, subject to the provisions of Section 3.04 hereof, and all
contingent liabilities related to fees payable to the Advisor prior to
termination of this Agreement.

 

(b)           The Advisor shall promptly
upon termination:

 

(i)            pay over to the Company all
money collected and held for the account of the Company pursuant to this
Agreement, after deducting any accrued compensation and reimbursement for its
expenses to which it is then entitled;

 

(ii)           deliver to the Board a full
accounting, including a statement showing all payments collected by it and a
statement of all money held by it, covering the period following the date of
the last accounting furnished to the Board;

 

16

 

(iii)          deliver to the Board all
assets, including the Assets, and documents of the Company then in the custody
of the Advisor; and

 

(iv)          cooperate with the Company
and take all reasonable actions requested by the Company to provide an orderly
management transition.

 

(c)                                  (i)            In the event that this
Agreement is terminated or allowed to expire without renewal due to a material
breach by the Advisor of this Agreement, which termination or expiration occurs
prior to the Company’s or the Advisor’s reimbursement of Organization and
Offering Expenses pursuant to the provisions of Section 3.02(a)(i), the
appropriate party, within 90 days after the end of the year in which the
Offering terminates shall make the necessary reimbursement; provided that the
Advisor shall only reimburse the Company to the extent that Organization and
Offering Expenses (other than Selling Commissions and the dealer manager fee)
and the Prior Offering Additional Reimbursement incurred by the Company through
the Termination Date exceed 1.5% of the Gross Proceeds raised in such completed
Offering.

 

(ii)                                  In the event
that an Advisory Agreement Termination (as such term is defined in the Articles
of Incorporation) occurs after the commencement of an Offering and prior to the
Company’s or the Advisor’s reimbursement of Organization and Offering Expenses
pursuant to the provisions of Section 3.02(a)(i), the appropriate party,
within 90 days after the end of the year in which such Offering terminates
shall make the necessary reimbursement; provided that the Advisor shall only reimburse
the Company to the extent that Organization and Offering Expenses (including
Selling Commissions and the dealer manager fee) incurred by the Company in
connection with such Offering through the Termination Date exceed 15% of the
Gross Proceeds raised in such completed Offering.

 

ARTICLE V

 

INDEMNIFICATION

 

5.01         Indemnification by the Company.

 

(a)                                  The Company
shall indemnify and hold harmless the Advisor and its Affiliates, including
their respective officers, directors, partners and employees, from all
liability, claims, damages or losses arising in the performance of their duties
hereunder, and related expenses, including reasonable attorneys’ fees, to the
extent such liability, claims, damages or losses and related expenses are not
fully reimbursed by insurance, subject to any limitations imposed by the laws
of the State of Maryland, the Articles of Incorporation and the NASAA REIT
Guidelines.  Notwithstanding the
foregoing, the Company shall not indemnify or hold harmless the Advisor or its
Affiliates, including their respective officers, directors, partners and
employees, for any liability or loss suffered by the Advisor or its Affiliates,
including their respective officers, directors, partners and employees, nor
shall it provide that the Advisor or its Affiliates, including their respective
officers, directors, partners and employees, be held harmless for any loss or
liability suffered by the Company, unless all of the following conditions are
met: (i) the Advisor or its Affiliates, including their respective
officers, directors, partners and employees, have determined, in good faith,
that the course of conduct which caused the loss or liability was in the best
interests of the Company; (ii) the Advisor or its Affiliates, including
their respective officers, directors, partners and employees, were acting on
behalf of or performing services of the Company; (iii) the liability or
loss was not the 

 

17

 

result of negligence or
misconduct by the Advisor or its Affiliates, including their respective
officers, directors, partners and employees; and (iv) the indemnification
or agreement to hold harmless is recoverable only out of the Company’s net
assets and not from stockholders. Notwithstanding the foregoing, the Advisor
and its Affiliates, including their respective officers, directors, partners
and employees, shall not be indemnified by the Company for any losses,
liability or expenses arising from or out of an alleged violation of federal or
state securities laws by such party unless one or more of the following
conditions are met: (i) there has been a successful adjudication on the
merits of each count involving alleged securities law violations as to the
particular indemnitee; (ii) such claims have been dismissed with prejudice
on the merits by a court of competent jurisdiction as to the particular
indemnitee; and (iii) a court of competent jurisdiction approves a
settlement of the claims against a particular indemnitee and finds that
indemnification of the settlement and the related costs should be made, and the
court considering the request for indemnification has been advised of the
position of the Securities and Exchange Commission and of the published
position of any state securities regulatory authority in which securities of
the Company were offered or sold as to indemnification for violations of
securities laws.

 

(b)                                 The Company may
advance funds to the Advisor or its Affiliates, including their respective
officers, directors, partners and employees, for legal expenses and other costs
incurred as a result of any legal action for which indemnification is being
sought is permissible only if all of the following conditions are satisfied: (i) the
legal action relates to acts or omissions with respect to the performance of
duties or services on behalf of the Company; (ii) the legal action is
initiated by a third-party who is not a stockholder or the legal action is
initiated by a stockholder acting in his or her capacity as such and a court of
competent jurisdiction specifically approves such advancement; (iii) the
Advisor or its Affiliates, including their respective officers, directors,
partners and employees, undertake to repay the advanced funds to the Company
together with the applicable legal rate of interest thereon, in cases in which
the Advisor or its Affiliates, including their respective officers, directors,
partners and employees, are found not to be entitled to indemnification.

 

(c)                                  Notwithstanding
the provisions of this Section 5.01, the Advisor shall not be entitled to
indemnification or be held harmless pursuant to this Section 5.01 for any
activity which the Advisor shall be required to indemnify or hold harmless the
Company pursuant to Section 5.02.

 

5.02         Indemnification by Advisor.  The Advisor shall indemnify and hold harmless
the Company from contract or other liability, claims, damages, taxes or losses
and related expenses including attorneys’ fees, to the extent that the
liability, claims, damages, taxes or losses and related expenses are not fully
reimbursed by insurance and are incurred by reason of the Advisor’s bad faith,
fraud, misfeasance, misconduct, gross negligence or reckless disregard of its
duties, but the Advisor shall not be held responsible for any action of the
Board in following or declining to follow any advice or recommendation given by
the Advisor.

 

18

 

ARTICLE VI

 

MISCELLANEOUS

 

6.01         Assignment to an Affiliate.  This Agreement and any rights, duties,
liabilities and obligations hereunder and the fees and compensation related
thereto may be assigned by the Advisor, in whole or in part, to a duly
qualified and licensed Affiliate of the Advisor without obtaining the approval
of the Board.  Any other assignment shall
be made only with the approval of a majority of the Board (including a majority
of the Independent Directors).  The
Advisor may assign any rights to receive fees or other payments under this
Agreement without obtaining the approval of the Board.  This Agreement shall not be assigned by the
Company without the consent of the Advisor, except in the case of an assignment
by the Company to a corporation or other organization which is a successor to
all of the assets, rights and obligations of the Company, in which case the
successor organization shall be bound hereunder and by the terms of said
assignment in the same manner as the Company is bound by this Agreement.  This Agreement shall be binding on successors
to the Company resulting from a Change of Control or sale of all or
substantially all the assets of the Company or the Operating Partnership, and
shall likewise be binding upon any successor to the Advisor.

 

6.02         Non-Solicitation.  During the period commencing on September 2,
2008 and ending one year following the termination of this Agreement, the
Company shall not, without the Advisor’s prior written consent, directly or
indirectly, (i) solicit or encourage any person to leave the employment or
other service of the Advisor or any of its affiliates, or (ii) hire, on
behalf of the Company or any other person or entity, any person who has left
the employment of the Advisor or any of its affiliates within the one-year
period following the termination of that person’s employment with the Advisor
or any of its affiliates.  During the
period commencing on September 2, 2008 and ending one year following the
termination of this Agreement, the Company will not, whether for its own
account or for the account of any other person, firm, corporation or other
business organization, intentionally interfere with the relationship of the
Advisor or any of its affiliates with, or endeavor to entice away from the
Advisor or any of its affiliates, any person who during the term of this
Agreement is, or during the preceding one-year period was, a tenant,
co-investor, co-developer, joint venturer or other customer of the Advisor or
any of its affiliates.

 

6.03         Relationship of Advisor and
Company.  The Company
and the Advisor are not partners or joint venturers with each other, and
nothing in this Agreement shall be construed to make them such partners or
joint venturers or impose any liability as such on either of them.

 

6.04         Notices.  Any notice, report or other communication
required or permitted to be given hereunder shall be in writing unless some
other method of giving such notice, report or other communication is required
by the Articles of Incorporation, the Bylaws, or accepted by the party to whom
it is given, and shall be given by being delivered by hand or by overnight mail
or other overnight delivery service to the addresses set forth herein:

 

	
  To
  the Directors and to the Company:

  	
  Behringer Harvard
  Multifamily REIT I, Inc.

  
	
   

  	
  15601
  Dallas Parkway

  
	
   

  	
  Suite 600

  
	
   

  	
  Addison,
  Texas 75001

  
	
   

  	
   

  
	
  To
  the Advisor:

  	
  Behringer Harvard
  Multifamily Advisors I, LLC

  
	
   

  	
  15601
  Dallas Parkway

  
	
   

  	
  Suite 600

  
	
   

  	
  Addison,
  Texas 75001

  

 

19

 

Either party shall, as soon
as reasonably practicable, give notice in writing to the other party of a
change in its address for the purposes of this Section 6.04.

 

6.05         Modification.  This Agreement shall not be changed,
modified, or amended, in whole or in part, except by an instrument in writing
signed by both parties hereto, or their respective successors or permitted
assignees.

 

6.06         Severability.  The provisions of this Agreement are
independent of and severable from each other, and no provision shall be
affected or rendered invalid or unenforceable by virtue of the fact that for
any reason any other or others of them may be invalid or unenforceable in whole
or in part.

 

6.07         Choice of Law; Venue.  The provisions of this Agreement shall be
construed and interpreted in accordance with the laws of the State of Texas,
and venue for any action brought with respect to any claims arising out of this
Agreement shall be brought exclusively in Dallas County, Texas.

 

6.08         Entire Agreement.  This Agreement contains the entire agreement
and understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements,
understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter
hereof.  The express terms hereof control
and supersede any course of performance and/or usage of the trade inconsistent
with any of the terms hereof. This Agreement may not be modified or amended
other than by an agreement in writing signed by each of the parties hereto.

 

6.09         Waiver.  Neither the failure nor any delay on the part
of a party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of the right, remedy, power or privilege
with respect to any other occurrence.  No
waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted the waiver.

 

6.10         Gender; Number.  Words used herein regardless of the number
and gender specifically used, shall be deemed and construed to include any
other number, singular or plural, and any other gender, masculine, feminine or
neuter, as the context requires.

 

6.11         Headings.  The titles and headings of sections and
subsections contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the
construction or interpretation hereof.

 

6.12         Execution in Counterparts.  This Agreement may be executed in multiple
counterparts, each of which shall be deemed to be an original as against any
party whose signature appears thereon, and all of which shall together
constitute one and the same instrument. 
This Agreement shall become binding when one or more counterparts
hereof, individually or taken together, shall bear the signatures of all of the
parties reflected hereon as the signatories.

 

6.13         Initial Investment.  The Advisor or one of its Affiliates has
contributed $200,001.69 (the “Initial Investment”)
in exchange for Shares of the Company. The Advisor or its Affiliates may not
sell any of the Shares purchased with the Initial Investment while the Advisor
acts in an advisory capacity to the Company. The restrictions included above
shall not apply to any Shares acquired by the Advisor or its Affiliates other
than the Shares acquired through the Initial Investment.  Before becoming a stockholder, Behringer
Harvard Holdings, an affiliate of the Advisor, the Advisor, the Company’s
directors and 

 

20

 

officers and their
affiliates must agree not to vote their shares regarding (1) the removal
of any of these affiliates and (2) any transaction between them and the
Company.

 

6.14         Ownership
of Proprietary Property.  The Advisor retains ownership of and reserves
all Intellectual Property Rights in the Proprietary Property.  To the extent that the Company has or obtains
any claim to any right, title or interest in the Proprietary Property,
including without limitation in any suggestions, enhancements or contributions
that Company may provide regarding the Proprietary Property, the Company hereby
assigns and transfers exclusively to the Advisor all right, title and interest,
including without limitation all Intellectual Property Rights, free and clear
of any liens, encumbrances or licenses in favor of the Company or any other party,
in and to the Proprietary Property.  In
addition, at the Advisor’s expense, the Company will perform any acts that may
be deemed desirable by the Advisor to evidence more fully the transfer of
ownership of right, title and interest in the Proprietary Property to the
Advisor, including but not limited to the execution of any instruments or
documents now or hereafter requested by the Advisor to perfect, defend or
confirm the assignment described herein, in a form determined by the Advisor.

 

6.15         Treatment Under Texas Margin Tax. For purposes
of the Texas margin tax, the Advisor’s performance of the services specified in
this Agreement will cause the Advisor to conduct part of the active trade or
business of the Company, and the compensation specified in Article III
includes both the payment of management fees and the reimbursement of specified
costs incurred in the Advisor’s conduct of the active trade or business of the
Company.  Therefore, the Advisor and
Company intend Advisor to be, and shall treat Advisor as, a “management company”
within the meaning of Section 171.0001(11) of the Texas Tax Code.  The Company and the Advisor will apply
Sections 171.1011(m-1) and 171.1013(f)-(g) of the Texas Tax Code to the
Company’s reimbursements paid to the Advisor pursuant to this Agreement of
specified costs and wages and compensation. 
The Advisor and the Company further recognize and intend that (i) as
a result of the fiduciary relationship created by this Agreement and
acknowledged in Section 2.02, reimbursements paid to the Advisor pursuant
to this Agreement are “flow-though funds” that the Advisor is mandated by law
or fiduciary duty to distribute, within the meaning of Section 171.1011(f) of
the Texas Tax Code, and (ii) as a result of Advisor’s contractual duties
under this Agreement, certain reimbursements under this Agreement are “flow-through
funds” mandated by contract to be distributed within the meaning of Section 171.1011(g) of
the Texas Tax Code.  The terms of this
Agreement shall be interpreted in a manner consistent with the characterization
of the Advisor as a “management company” as defined in Section 171.0001(11),
and with the characterization of the reimbursements as “flow-though funds”
within the meaning of Section 171.1011(f)-(g) of the Texas Tax Code.

 

6.16         Savings Clause.  If any
provision of this Agreement is held unenforceable, then such provision will be
modified to reflect the parties’ intention.  All remaining provisions
of this Agreement shall remain in full force and effect.

 

[The remainder of this  page intentionally
blank]

 

21

 

IN WITNESS WHEREOF, the parties
hereto have executed this Fourth Amended and Advisory Management Agreement as
of the date first above written.

 

	
   

  	
  BEHRINGER
  HARVARD MULTIFAMILY REIT I, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Gerald J. Reihsen, III

  
	
   

  	
   

  	
  Gerald
  J. Reihsen, III

  
	
   

  	
   

  	
  Executive
  Vice President — Corporate Development & Legal and Assistant
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BEHRINGER
  HARVARD MULTIFAMILY ADVISORS I, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Gerald J. Reihsen, III

  
	
   

  	
   

  	
  Gerald
  J. Reihsen, III

  
	
   

  	
   

  	
  Executive
  Vice President — Corporate Development & Legal and Assistant
  SecretaryExhibit 10.46

 

CONTRACT
FOR PURCHASE AND SALE

 

Alexan
Fitzhugh

Dallas, Texas

 

This CONTRACT FOR
PURCHASE AND SALE (this “Contract”) is made and entered as of
May 19, 2010 (the “Effective Date”) by and between FITZHUGH APARTMENTS LIMITED PARTNERSHIP, a
Delaware limited partnership (“Seller”), and BEHRINGER HARVARD MULTIFAMILY OP I LP, a Delaware limited
partnership (“Buyer”).

 

For and in consideration of the mutual covenants and
agreements contained in this Contract, Buyer and Seller agree as follows.

 

1.             PURCHASE AND SALE. Seller agrees
to sell and convey to Buyer, and Buyer agrees to buy from Seller, the Property
(defined below) for the consideration and upon and subject to the terms and
conditions hereinafter set forth. The “Property” means:

 

(a)           The land situated
in Dallas, Dallas County, Texas, more particularly described in Exhibit A
to this Contract (the “Land”), together with (i) the improvements
situated on the Land commonly known as Alexan Fitzhugh, and all other
structures, fixtures, buildings and improvements situated on the Land (such
buildings, structures, fixtures and improvements being herein called the “Improvements”),
(ii) any and all rights, titles, powers, privileges, easements, licenses,
rights-of-way and interests appurtenant to the Land and the Improvements, and
(iii) all rights, titles, powers, privileges, licenses, easements,
rights-of-way and interests, if any, of Seller, either at law or in equity, in
possession or in expectancy, in and to any real estate lying in the streets, highways,
roads, alleys, rights-of-way or sidewalks, open or proposed, in front of,
above, over, under, through or adjoining the Land and in and to any strips or
gores of real estate adjoining the Land;

 

(b)           All equipment,
fixtures, appliances, inventory, computers, computer hardware, computer software,
and other tangible personal property of whatever kind or character owned by
Seller and attached to or installed or located on or in the Land or the
Improvements, including furniture, furnishings, drapes and floor coverings,
office equipment and supplies, heating, lighting, refrigeration, plumbing,
ventilating, incinerating, cooking, laundry, communication, electrical,
dishwashing, and air conditioning equipment, disposals, window screens, storm
windows, recreational equipment, pool equipment, patio furniture, sprinklers,
hoses, tools and lawn equipment (collectively, the “Personal Property”);

 

(c)           All of Seller’s
right, title and interest in and to: (i) all leases and other agreements
that permit occupancy or use of any apartment unit or other space in the
Improvements (collectively, “Tenant Leases”); (ii) all refundable
deposits (security, pet or otherwise) actually paid to or received by Seller
pursuant to Tenant Leases (and not as of the Closing Date returned to or forfeited
by tenants under Tenant Leases); and (iii) all service and maintenance
contracts which relate to the operation, maintenance or management of the Land,
the Improvements or the Personal Property (collectively, the “Service
Contracts”); and

 

(d)           To the extent
assignable, all of Seller’s right, title, and interest in and to all of the following
(collectively, the “Intangibles”): (i) all bonds, permits, licenses
(including

 

1

 

software licenses), approvals, utility rights,
development rights and similar rights related to the Property, or any portion
thereof, whether granted by governmental authorities or private persons,
(ii) all trademarks, trade names, or symbols under which the Property, or
any portion thereof, is operated including the name of “Fitzhugh”, but
excluding the names “Crow,” “Trammell Crow,” “Trammell Crow Residential,” “TCR”
and “Alexan” and derivatives of any such names and the “TCR” logo as well as
trademarks, trade names, and service marks containing any of such names or such
logo (collectively, the “Excluded IP”), (iii) all telephone numbers
and exchanges serving the Property, or any portion thereof, (iv) all
business and goodwill of Seller related to the Property, or any portion thereof,
(v) all site plans, surveys, soil and substrata studies, architectural
drawings, “as built” plans and specifications, engineering plans, floor plans,
and landscape plans that relate exclusively to the Property, or any portion
thereof, (vi) all leasing materials and brochures, ledger cards, leasing
records, leasing applications, tenant credit reports and maintenance and
operating records related exclusively to the operation of Property, or any
portion thereof, (vii) all warranties and guaranties (express or implied)
issued in connection with, or arising out of (A) the purchase and repair
of all Personal Property or (B) the construction of any of the
improvements located on the Property, or any portion thereof, but excluding any
warranty or guaranty from the general contractor for the Property or any other
affiliate of Seller, and (viii) the website that at the time of Closing
has the Internet domain name www.alexanfitzhugh.com (the “Website”);
provided, that (x) Buyer may, at Closing, choose to exclude the Website
from the Property, or (y) if Buyer does not choose to exclude the Website
from the Property at Closing, then no more than 30 days after Closing, Buyer
shall, at Buyer’s expense, change the Internet domain name of the website to
another name that does not include the Excluded IP and remove all Excluded IP,
all links to web sites containing Excluded IP (e.g. www.tcresidential.com; www.alexanapts.com, etc.),
all references to Seller and Seller’s property manager and all addresses, phone
numbers, e-mail addresses and other identifying information relating to Seller
or Seller’s property manager from the Website. The obligations in the foregoing
clause (viii) shall survive Closing.

 

2.             PURCHASE PRICE. The total
purchase price for the Property (the “Purchase Price”) shall be
$49,750,000 payable in cash at Closing (defined below). Payment in cash shall
mean by cashier’s check or certified check drawn on a national banking
association acceptable to Seller or by wire transfer of immediately available
federal funds (the foregoing types of funds are hereinafter referred to as “Immediately
Available Funds”).

 

3.             EARNEST MONEY.

 

(a)           Deposits. Not later
than two business days after the Effective Date, Buyer shall deliver to Chicago
Title Insurance Company, 2001 Bryan Street, 17th Floor, Dallas, Texas 75201
(Attention: Konrad Kaltenbach) (the “Title Company”), as escrow agent,
$1,000,000 (by Immediately Available Funds) as earnest money (the “Initial
Earnest Money”), which funds shall be deposited and held by the Title Company
in an interest bearing account. Unless Buyer has elected to terminate this
Contract prior to the end of the Feasibility Period (defined below), then not
later than the expiration of the Feasibility Period, Buyer shall deliver to the
Title Company an additional amount equal to $1,000,000 (by Immediately
Available Funds) as additional earnest money (“Additional Earnest Money”).
The Initial Earnest Money and the Additional Earnest Money, to the extent
delivered by Buyer, are collectively referred to as the “Earnest Money.”
If Buyer does not timely deliver the Initial Earnest Money as provided in this Section 3,
then this Contract shall be null and void, and neither party shall have any
right or obligation

 

2

 

hereunder. If Buyer fails to timely deliver the
Additional Earnest Money as provided in this Section 3, and such
failure continues for two business days after notice from Seller to Buyer, then
the Initial Earnest Money (other than the Option Money (defined below)) shall
be returned to Buyer, whereupon this Contract shall terminate, and neither
party shall have any right or obligation hereunder other than those rights and
obligations that expressly survive termination of this Contract. The Earnest
Money shall be invested in an interest-bearing account at one or more
federally-insured national banking institutions approved by Buyer, provided
Buyer satisfies the Title Company’s requirements with respect thereto. The term
“Earnest Money” as used herein shall include all amounts required to be
deposited with the Title Company and any interest earned thereon. If the
transaction contemplated by this Contract is closed, the Earnest Money will be
applied in payment of the Purchase Price to be paid at Closing. If the
transaction contemplated by this Contract is not closed, the Earnest Money
shall be disbursed in accordance with the provisions of this Contract. The
provisions of this Contract regarding disposition of the Earnest Money
following a termination of this Contract shall survive termination of this
Contract.

 

(b)           Option Money. $150,000 of
the Initial Earnest Money (the “Option Money”) shall be considered to be
nonrefundable and will not be returned to Buyer for any reason except for a
termination of this Contract under Section 10(b) or under Section 12(a)(i) or
(ii).

 

4.             CLOSING.

 

(a)           Closing Date. The closing
of the sale of the Property to Buyer (the “Closing”) shall take place at
the Title Company on June 10, 2010 (the “Closing Date”); provided,
however, Buyer may elect to proceed with the Closing on an earlier Closing Date
by delivering notice thereof to Seller not less than five days before such
earlier Closing Date. The parties may attend the Closing by making their
Closing deliveries into escrow with Title Company pursuant to escrow
instructions that do not conflict with the terms of this Contract.

 

(b)           Seller’s Closing Deliveries. At the
Closing, Seller shall deliver to Buyer the following:

 

(i)            a Special Warranty Deed duly
executed and acknowledged by Seller, in the form attached as Exhibit B,
subject only to the Permitted Exceptions (defined below) and any others
approved by Buyer in writing;

 

(ii)           a Bill of Sale duly executed
by Seller, in the form attached as Exhibit C;

 

(iii)          an Assignment and Assumption
Agreement (the “Assignment and Assumption Agreement”) duly executed by
Seller, in the form attached as Exhibit D;

 

(iv)          an Assignment of Tenant
Leases and Assumption (the “Assignment of Leases”) duly executed by
Seller, in the form attached as Exhibit E;

 

(v)           a form of notice to all
tenants of the Property (“Tenant Notice Letter”) duly executed by
Seller, in the form attached as Exhibit F;

 

(vi)          exclusive possession of the
Property, subject only to the rights of parties claiming under the Tenant
Leases, the Service Contracts and the Permitted Exceptions;

 

3

 

(vii)         a non-foreign affidavit as
permitted by Section 1445 of the Internal Revenue Code of 1986, as
amended, and the regulations promulgated thereunder;

 

(viii)        evidence of its capacity and
authority for the closing of this transaction;

 

(ix)           a current update of the
Initial Lease Schedule (“Closing Lease Schedule”), certified by Seller
using the same certification as that made with respect to the Initial Lease
Schedule;

 

(x)            a current update of the Rent
Roll (defined below) dated not earlier than five days before the Closing Date,
certified by Seller as being that upon which Seller customarily relies in the
ordinary course of its business;

 

(xi)           a customary owner’s
affidavit certifying to the Title Company that there are no unpaid bills or
claims relating to the Property as of the date of Closing except as specified,
duly executed by Seller in the form attached as Exhibit G;

 

(xii)          a settlement statement reflecting
the prorations and adjustments required under Section 4(f); and

 

(xiii)         any necessary state, county
or local governmental transfer tax forms or returns.

 

(c)           Buyer’s Closing Deliveries. At the
Closing, Buyer shall perform and deliver the following:

 

(i)            the Purchase Price in
Immediately Available Funds (reduced by the amount, if any, of the Earnest
Money applied for that purpose and by any other amounts to be credited to Buyer
at the Closing pursuant to the provisions of this Contract);

 

(ii)           the Assignment and
Assumption Agreement duly executed by Buyer;

 

(iii)          the Assignment of Leases
duly executed by Buyer;

 

(iv)          the Tenant Notice Letter
duly executed by Buyer;

 

(v)           evidence of its capacity and
authority for the closing of this transaction; and

 

(vi)          a settlement statement
reflecting the prorations and adjustments required under Section 4(f);
and

 

(vii)         any necessary state, county
or local governmental transfer tax forms or returns.

 

(d)           Closing Costs. Seller shall
pay: (i) the premium for the Owner’s Title Policy (excluding any amounts
relating to endorsements to the Owner’s Title Policy); (ii) costs and
expenses for the UCC searches; (ii) costs and expenses for the Survey;
(iii) any transfer, excise, document stamps, sales and similar taxes applicable
to the transactions contemplated hereby; (iv) one-half (1/2) of any escrow
fee; (v) costs of tax certificates; (vi) Seller’s attorneys’ fees;
and (vii) other expenses stipulated to be paid by Seller under other
provisions of this Contract. Buyer shall pay: (A) the premium for any
endorsements to the Owner’s Title Policy; (B) one-half (1/2) of any escrow
fee;

 

4

 

(C) Buyer’s attorneys’ fees; (D) recording
fees; and (E) other expenses stipulated to be paid by Buyer under other
provisions of this Contract.

 

(e)           Additional
Seller Deliveries. Upon completion of the Closing, Seller shall
deliver to Buyer all keys to the Improvements in Seller’s possession and an
inventory of keys issued by Seller to others. Seller shall also deliver the
originals (or copies if Seller does not have originals) of all Tenant Leases
and other tenant records such as applications, credit reports and
correspondence. Seller shall also deliver any plans and specifications, surveys
and other plans assigned to Buyer as part of the Property. Delivery of the
materials in this Section 4(e) may be accomplished by leaving
such items in the business office at the Property.

 

(f)            Proration of
Rents, Deposits, Assessments, and Taxes. Rents and all expenses of operation
of the Property (including utilities, assessments, property taxes and other
amounts due under the Service Contracts and leasing commissions) except for
insurance premiums and property management fees will be prorated as of the
Closing Date; provided, however, no prorations will be made for delinquent
rents existing as of the Closing. Amounts allocable to the Closing Date will be
for the account of Buyer if by 11:00 am (Central Time) on the Closing Date
Buyer has taken all action required of it for Closing and Buyer’s funds in the
amount required by this Contract are available in the closing escrow; otherwise
amounts allocable to the Closing Date (and if the day after the Closing Date is
not a business day, for all intervening days until the next business day) will
be for the account of Seller. If ad valorem taxes for the year in which the
sale is closed are not available on the Closing Date, proration of taxes will
be made on the basis of taxes assessed in the previous year, with a subsequent
cash adjustment of such proration to be made between Seller and Buyer, if
necessary, when actual tax figures are available. If any such charges,
expenses, income, or other required prorations (other than taxes and delinquent
rents) are unavailable at the precise Closing Date, then a readjustment of
these items shall be made within 30 days after the Closing. With respect to any
delinquent rentals, Buyer will make a reasonable attempt (but shall not be
obligated) to collect the same for Seller’s benefit after the Closing in the
usual course of the operation of the Property and such collection, if any, will
be remitted to Seller promptly upon receipt by Buyer. Nothing contained herein
shall operate to require Buyer to institute any lawsuit or other collection
procedure to collect such delinquent rentals. Seller agrees that it will not
initiate any suit or proceeding to collect delinquent rents from a tenant so
long as they remain a tenant of the Property. Any sums received by Buyer from
any tenants owing delinquent rentals will first be applied to the then-current
portion of such tenant’s rent, and then to costs incurred by Buyer in
collecting the delinquent rents, and then (and only then) to delinquent rentals
owed with respect to the period before Closing. With respect to locator fees,
commissions and the like related to any Tenant Lease that is executed prior to
Closing, Sells shall pay such amounts if the tenant takes occupancy of its unit
prior to Closing and Buyer shall pay such amounts if the tenant takes occupancy
of its unit after Closing. To the extent that any such amount is due under a
Tenant Lease in connection with the extension of such Lease, Seller shall pay
such amounts if the extension occurs prior to Closing and Buyer shall pay such
amounts if the extension occurs after Closing. Buyer shall not be entitled to a
credit at Closing for any portion of any bonus or other up-front payment made
under or in connection with any Service Contract (including all laundry room,
cable and telecommunications agreements, if any). At the Closing, Seller will
pay to Buyer in cash or credit to Buyer the amount of any refundable deposits
actually held by Seller under Tenant Leases. Nonrefundable deposits, bonuses,
fees and upfront payments will not be prorated, nor

 

5

 

will Buyer be entitled to a credit on account of
such amounts. The provisions of this Section 4(f) shall
survive the Closing.

 

(g)           Insurance
Premiums and Management Fees; Utility Deposits. Insurance premiums and management
fees incurred by Seller will be paid for by Seller and Buyer shall not be
liable therefor. Seller will not assign to Buyer, and Buyer will not be
entitled to, any deposits held by any utility company or other company
servicing the Property; but rather such deposits will be returned to Seller and
Buyer will arrange and bear all responsibility to arrange with all utility
companies to have accounts styled in Buyer’s name beginning on the Closing
Date. The provisions of this Section 4(g) shall survive the
Closing.

 

(h)           Pre-Closing Operations. Seller shall
instruct its property manager to discontinue data entry operations in the
on-site computer system for the Property (including making deposits of rental
income) for a period of at least 72 hours before the Closing. Seller
acknowledges that such discontinuance is intended to afford Seller and Buyer an
opportunity to coordinate the transition of the Property in anticipation of
Closing and to complete work on prorations as set forth in this Contract.
Seller shall instruct its property manager to forward to Buyer or its designee
final reports to facilitate transition planning and compilation of prorations
as soon as practicable after discontinuing such data entry (with Seller
endeavoring to cause its property manager to do the same within two hours of
such discontinuance).

 

5.             FEASIBILITY STUDY, INSPECTION,
AND SERVICE CONTRACTS.

 

(a)           Feasibility
Study. Buyer is granted the right to conduct engineering and/or market and economic
feasibility studies of the Property and a physical inspection of the Property,
including studies or inspections to determine the existence of any
environmental hazards or conditions (collectively, the “Feasibility Study”)
during the period (the “Feasibility Period”) commencing on the Effective
Date and ending at 5:00 p.m., Central Time, on the June 3, 2010. With
Seller’s permission, after Seller has received advance notice sufficient to
permit it to schedule in an orderly manner Buyer’s examination of the Property
and to provide at least 24-hours’ advance written notice to any affected
tenants, Buyer or its designated agents may enter upon the Property during
normal business hours for purposes of analysis or other tests and inspections
which may be deemed necessary by Buyer for the Feasibility Study. Buyer or its
designated representative must be accompanied by a designated representative of
Seller or have received Seller’s written permission prior to entering upon the
Property in connection with Buyer’s Feasibility Study; provided, however, Buyer
may not enter into any space leased by any tenant without being accompanied by
a designated representative of Seller. Seller agrees to make its representative
reasonably available during normal business hours. Buyer will not alter the
physical condition of the Property or conduct invasive testing without
notifying Seller of its requested tests, and obtaining the written consent of
Seller to any physical alteration of the Property or invasive testing. Buyer
will utilize commercially reasonable diligence to conduct or cause to be
conducted all inspections and tests in a manner and at times which will not
unreasonably interfere with any tenant’s use and occupancy of the Property. If
Buyer determines, in its sole judgment, that the Property is not suitable for
any reason for Buyer’s intended use or purpose, or is not in satisfactory
condition, then Buyer may terminate this Contract by written notice to Seller
prior to expiration of the Feasibility Period, in which case the Earnest Money
(other than the Option Money) will be returned to Buyer, and neither party
shall have any further right or obligation hereunder other than as set forth
herein with respect to rights or obligations

 

6

 

which survive termination. If this Contract is not
terminated pursuant to this Section 5(a), then after expiration of
the Feasibility Period, after Seller has received advance notice sufficient to
permit it to schedule in an orderly manner Buyer’s examination of the Property
and to provide at least 24-hours’ advance written notice to any affected
tenants, Buyer or its designated agents may enter upon the Property during
normal business hours. Buyer or its designated representative must be
accompanied by a designated representative of Seller or have received Seller’s
written permission prior to entering upon the Property; provided, however,
Buyer may not enter into any space leased by any tenant without being
accompanied by a designated representative of Seller. If this Contract is not
timely terminated pursuant to this Section 5(a), Buyer’s right to
terminate this Contract pursuant to this Section 5(a) and any
and all objections with respect to the Feasibility Study will be deemed to have
been waived by Buyer for all purposes.

 

(b)           Restoration of Property. Buyer will
promptly restore the Property to its original condition if damaged or changed
due to the tests and inspections performed by Buyer. Buyer will leave the
Property free of any mechanic’s or materialman’s liens or other encumbrances
arising out of any of the inspections or tests. The provisions of this Section 5(b) will
survive Closing or any termination of this Contract.

 

(c)           Indemnity and Insurance. Buyer shall
indemnify and hold Seller and its partners, affiliates, officers, directors,
employees and agents (collectively with Seller, the “Seller Parties”) harmless
from all claims, liabilities, damages, losses, costs, and expenses (including
reasonable attorneys’ fees) caused by Buyer or Buyer’s Feasibility Representatives
(defined below); provided, however, neither Buyer nor Buyer’s Feasibility
Representatives shall be liable for, and Buyer shall not indemnify the Seller
Parties with respect to, any pre-existing condition, fact, matter, item, or
substance discovered, uncovered, located, identified, or disturbed as a result
of Buyer’s or Buyer’s Feasibility Representatives’ entry or activities, except
to the extent that such condition, fact, matter, item, or substance is
exacerbated by Buyer, Buyer’s employees or Buyer’s Feasibility Representatives.
Buyer shall procure and continue in force from and after the date Buyer and
Buyer’s Feasibility Representatives first enter the Property, and continuing
throughout the term of this Contract, liability insurance of not less than
$5,000,000 (which amount may be met in combination with an umbrella/excess
liability policy) covering the activities of Buyer and Buyer’s Feasibility
Representatives. Buyer shall cause its independent contractors, agents,
consultants and other representatives conducting the Feasibility Study
(collectively, “Buyer’s Feasibility Representatives”) to procure and
maintain during the term of this Contract liability insurance of not less than
$1,000,000 and shall use its commercially reasonable efforts to cause Buyer’s
Feasibility Representatives to indemnify and hold Buyer harmless from claims,
liabilities, damages, losses, costs, and expenses (including reasonable
attorneys’ fees) for and from which Buyer is obligated to indemnify and hold
the Seller Parties harmless in this Section 5(c). Buyer shall (and
shall use commercially reasonable efforts to cause Buyer’s Feasibility
Representatives to) name Seller and Seller’s property manager as additional
insureds under all such policies. If (i) Buyer is obligated to indemnify
and hold any Seller Party harmless in this Section 5(c) and
(ii) such Seller Party actually receives indemnity payments from Buyer’s
Feasibility Representatives, then Buyer shall not be obligated to indemnify and
hold such Seller Party harmless in this Section 5(c) to the
extent of such payments actually received by such Seller Party. The provisions
of this Section 5(c) will survive Closing or any termination
of this Contract.

 

7

 

(d)           Confidential Information. Buyer shall
treat as confidential all information and materials furnished or made available
by Seller to Buyer in accordance with this Contract or obtained by Buyer in the
course of its investigation and Feasibility Study (collectively, “Confidential
Information”). Buyer will not divulge and will use its commercially
reasonable efforts to prevent Buyer’s Representatives (defined below) from
divulging the Confidential Information except as reasonably necessary to third
parties engaged by Buyer for the limited purpose of analyzing and investigating
the Confidential Information for the purpose of consummating the transaction,
including Buyer’s agents, attorneys, representatives, consultants, prospective
lenders, current and prospective investors and their advisors, current and
prospective financial partners, and engineers in this transaction (collectively
“Buyer’s Representatives”), so long as Buyer informs the person to whom
the disclosure is made of the confidential nature of the Confidential
Information and Buyer’s obligations with respect thereto under this Contract
and directs the person to whom the disclosure is made to treat the Confidential
Information confidentially and not to disclose the Confidential Information to
any person other than as authorized by this Section 5(d). If Buyer
purchases the Property, then Buyer and Buyer’s Representatives may disclose
such Confidential Information after the Closing. Notwithstanding anything to
the contrary in this Section 5(d) or in any other agreement to
which a party hereto is bound, the Confidential Information shall exclude, and
Buyer and Buyer’s Representatives may disclose, any information or
documentation that (i) is readily ascertainable by the general public,
(ii) was known to Buyer on a non-confidential basis prior to the execution
of this Contract, (iii) is deemed advisable by Buyer to disclose to its
officers, directors, members, managers, employees, agents, consultants, members
of professional firms serving it or potential lenders, investors, consultants
and brokers and others who need to know such information or review such
documentation for the purpose of assisting Buyer in connection with the
transaction contemplated by this Contract so long as Buyer informs the person
to whom the disclosure is made of the confidential nature of the Confidential
Information and Buyer’s obligations with respect thereto under this Contract
and directs the person to whom the disclosure is made to treat the Confidential
Information confidentially and not to disclose the Confidential Information to
any person other than as authorized by this Section 5(d),
(iv) is required by a subpoena, civil investigative demand or similar
process, but only if Buyer promptly upon receipt of the subpoena, demand or
process notifies Seller and cooperates in any efforts by Seller to obtain a
protective order or other assurance that confidential treatment will be
accorded the Confidential Information to be disclosed under the subpoena,
demand or process and Buyer uses reasonable efforts to obtain confidential
treatment for any Confidential Information so disclosed, or (v) is deemed
advisable by Buyer or its counsel to be disclosed in connection with financial
reporting, securities disclosures or other legal, tax or financial requirements
or guidelines applicable to Buyer or any affiliate thereof, including any
disclosures to the Securities and Exchange Commission. The provisions of this Section 5(d) will
survive Closing or any termination of this Contract.

 

(e)           Service
Contracts. During the Feasibility Period, Buyer shall have
the right to review all Service Contracts. Buyer may notify Seller prior to the
expiration of the Feasibility Period of any Service Contracts that Buyer, in
its discretion, approves. All Service Contracts (other than the Non-Terminable
Contracts) that Buyer does not so approve shall be deemed disapproved, and
Seller shall, at Seller’s expense, terminate such disapproved Service Contracts
effective not later than the Closing Date. In all events, the property management
agreement in effect with respect to the Property, along with any Service
Contract that is not delivered to Buyer, shall be deemed to be disapproved by
Buyer, and Seller shall, at Seller’s expense, terminate such property
management

 

8

 

agreement and undelivered Service Contracts
effective not later than the Closing Date. Notwithstanding the foregoing, Buyer
shall be deemed to have approved and shall have no right to reject the Service
Contracts (“Non-Terminable Contracts”) that, by their terms, cannot be
terminated by Seller except upon the payment of a penalty, termination fee, or
other charge that is greater than two months’ payment for services under such
Service Contract or require notice of termination to be given sooner than the
date on which Buyer notifies Seller of its election to terminate.

 

6.             TITLE REVIEW
AND APPROVAL.

 

(a)           Seller shall  deliver to Buyer within
five days after the Effective Date (i) a Commitment for issuance of a
Title Insurance Policy with copies of all recorded instruments affecting the
Property and recited as exceptions in such Commitment for Title Insurance
(collectively, the “Commitment”), (ii) reports of searches made
under Seller’s name in the Uniform Commercial Code records of the county in
which the Property is located, the Secretary of State of the state in which the
Property is located, and the Secretary of State of the state in which Seller is
organized (collectively, “UCC Reports”), and (iii) a current “as
built” survey (or an update of an existing “as built” survey) (the “Survey”)
of the Property made on the ground by a registered professional land surveyor
that conforms to the current requirements of an ALTA/ACSM Land Title Surveys as
adopted by the American Land Title Association and American Congress on
Surveying and Mapping. The Survey shall be certified to Buyer using the form of
certificate attached as Exhibit H.

 

(b)           The term “Owner’s Title
Policy” means an Owner Policy of Title Insurance on ALTA Form B-1970 or
other form reasonably acceptable to Buyer if such form is not reasonably able
to be obtained from the Title Company and with such endorsements as Buyer may
request, to the extent such endorsements are available from the Title Company
and paid for by Buyer. The Owner’s Title Policy is to be issued subsequent to
Closing in accordance with a marked-up and executed version of the Commitment
(or an executed Pro Forma), in the full amount of the Purchase Price, insuring
Buyer’s fee simple title to the Land and Improvements to be good and
indefeasible subject only to Permitted Exceptions and other exceptions approved
by Buyer in writing; provided, however:

 

(1)           the standard
exceptions shall, to the extent permitted under applicable insurance
regulations, be deleted;

 

(2)           the rights of
parties in possession shall be limited only to the rights of tenants as tenants
under written leases listed on the Initial Lease Schedule or under any other
lease executed in accordance with this Contract after the Effective Date; and

 

(3)           the Owner’s
Title Policy shall not contain any Monetary Encumbrances (defined below).

 

(c)           If Buyer has an objection to
items disclosed in the Commitment, UCC Reports, or Survey, Buyer will have ten
days after receipt of the Commitment, UCC Reports, and Survey (whichever is
last received) (the “Title Review Period”) to give Seller written notice
of its objections. If Buyer gives timely written notice of its objections,
Seller shall have the opportunity, but not an obligation, for five days (the “Cure
Period”) following delivery of Buyer’s notice, if any, to cure the same,
but Seller shall have no obligation to expend any money, to incur any
contractual or other obligations, or to institute any

 

9

 

litigation in pursuing such efforts. If any
objection is not satisfied within such time period, Buyer will elect within
five days of the expiration of the Cure Period, as its sole and exclusive
remedy, to either (i) terminate this Contract, in which case the Earnest
Money (other than the Option Money) will be refunded to Buyer, and neither
party shall have any further rights or obligations pursuant to this Contract,
other than as set forth herein with respect to rights or obligations which
survive termination, or (ii) waive the unsatisfied objection (which will
thereupon become a Permitted Exception). Any exception to title not objected to
by Buyer in the manner and within the time period specified in this Section 6
will be deemed accepted by Buyer.

 

(d)           The phrase “Permitted
Exceptions” shall mean (i) standard exceptions to title set forth on
the Commitment that are permitted by Section 6(b), (ii) the
rights of parties in possession under Tenant Leases, (iii) non-delinquent
real property taxes and all assessments and unpaid installments thereof which
are not delinquent, (iv) matters created by, through or under Buyer,
(v) all matters, rights and interests that would be discoverable by an
inspection or survey of the Property, and (vi) those other exceptions to
title set forth in the Commitment or Survey and which have been accepted or
deemed accepted by Buyer. Notwithstanding the foregoing, in all events and
regardless of whether Buyer objects to such exceptions, on or before the
Closing, Seller shall: (A) discharge any voluntary lien created by Seller
that is secured by any portion of the Property; (B) discharge any lien for
delinquent ad valorem taxes; (C) discharge any mortgage or deed of trust
encumbering the Property; (D) discharge or bond around any mechanics’ liens
encumbering the Property to the extent such matters were created by Seller or
arise from work contracted for by Seller; and (E) discharge all security
interests reflected in the UCC Reports to the extent that such security
interests encumber the Personal Property and such matters were created by
Seller or arise from work contracted for by Seller (collectively, “Monetary
Encumbrances”).

 

(e)           After the Effective Date,
Seller will not intentionally or deliberately place on the Property any lien,
encumbrance or other exception other than the Permitted Exceptions.

 

7.             SUBMISSION
MATTERS AND ADDITIONAL MATTERS.

 

(a)           Submission Matters. Seller shall
deliver to Buyer within five days after the Effective Date, copies of the
following (the “Submission Matters”):

 

(i)            a standard form of Tenant
Lease used with respect to the Property;

 

(ii)           all Service Contracts
relating to the ownership and operation of the Property;

 

(iii)          a list of the Personal
Property;

 

(iv)          all licenses and permits
with respect to the ownership and operation of the Property, including building
permits and certificates of occupancy;

 

(v)           the most current real estate
and personal property tax statements with respect to the Property;

 

(vi)          to the extent (and only to
the extent) that such items are available and in Seller’s actual possession or
in the actual possession of Seller’s management company, all

 

10

 

warranties and guaranties relating to the Property,
or any part thereof, or to the Personal Property;

 

(vii)         a schedule of
leases at the Property dated as of a date not more than 30 days prior to the
Effective Date (“Initial Lease Schedule”) prepared by the management
company managing the Property showing the following information: (a) unit
number, and (b) tenant name;

 

(viii)        a rent roll dated as of a
date not more than 30 days prior to the Effective Date (“Rent Roll”) prepared
by the management company managing the Property showing, at a minimum, the
following information: (a) unit number, (b) tenant name,
(c) rental rate, (d) expiration date of the tenant lease,
(e) amount of deposits, and (f) move-in date;

 

(ix)           operating
reports for the most recent 24 months prepared by the management company
managing the Property, showing all items of income and expense and all
deposits;

 

(x)            to the extent
(and only to the extent) that such items are available and in Seller’s actual
possession or in the actual possession of Seller’s management company, all
environmental and soils reports;

 

(xi)           to the extent
(and only to the extent) that such items are available and in Seller’s actual
possession or in the actual possession of Seller’s management company,
non-privileged correspondence and pleadings in pending lawsuits affecting the
Property, if any;

 

(xii)          a list of repairs done to
the Property within the last 12 months that individually have a cost of more
than $5,000;

 

(xiii)         to the extent (and only to
the extent) that such items are available and in Seller’s actual possession or
in the actual possession of Seller’s management company, the bonds and/or
warranties of any roof, foundation, or pest control (including termite) work
performed on the Property;

 

(xiv)        a schedule of all insurance
claims over the past three years that relate to the Property, including crime
and casualty claims;

 

(xv)         to the extent
(and only to the extent) received by Seller or Seller’s management company, all
orders affecting the Property sent by any governmental agencies;

 

(xvi)        a description of all pending
and threatened litigation, if any, affecting the Property;

 

(xvii)       to the extent (and only to
the extent) received by Seller or Seller’s management company, any written
notices either (i) claiming violation of any applicable law or restrictive
covenant affecting any portion of the Land, Improvements or Personal
Property, or (ii) requiring or calling attention to the need for any work,
repairs, construction, alterations or installation in connection with the Land
and Improvements which is required in order to comply with any law or restrictive
covenant; and

 

11

 

(xviii)      a list of all employees of Seller, including each
employee’s start date and salary.

 

(b)           Additional Submission
Matters. In addition, Seller will cause to be made available to Buyer for
inspection at the Property the following (the “Additional Submission Matters”),
to the extent (and only to the extent) that such items are available and in
Seller’s actual possession or in the actual possession of Seller’s management
company:

 

(i)            copies of all architectural
drawings, “as built” plans and specifications, engineering plans and studies,
floor plans, landscape plans and other plans of any kind that relate to the
Property in the possession of or under the control of Seller;

 

(ii)           the 12 most recent utility
bills relating to the Property;

 

(iii)          all Tenant Leases; and

 

(iv)          delinquency logs, tenant
complaint logs, and repair/maintenance logs and records.

 

(c)           Additional Copies of Rent
Roll. Within three business days after Buyer’s request therefor, Seller
shall provide additional copies to Buyer of the Rent Roll, updated to a date on
or after the date of Buyer’s request. Seller will provide such copies to Buyer
without representation or warrant of any kind. Buyer may make no more than three
requests for updated copies of the Rent Roll under this Section 7(c).

 

8.             BROKER’S FEE. Buyer and
Seller represent and warrant to each other that no real estate commissions,
finders’ fees, or brokers’ fees have been or will be incurred in connection with
the sale of the Property by Seller to Buyer. Buyer and Seller will indemnify,
defend and hold each other harmless from any claim, liability, obligation, cost
or expense (including attorneys’ fees and expenses) for fees or commissions
relating to Buyer’s purchase of the Property asserted against either party by
any broker or other person claiming by, through or under the indemnifying party
or whose claim is based on the indemnifying party’s acts. The provisions of
this Section 8 shall survive the Closing or any termination of this
Contract.

 

9.             AS-IS SALE. EXCEPT AS
OTHERWISE SPECIFICALLY STATED IN SECTION 11 OF THIS CONTRACT OR IN
ANY DOCUMENTS DELIVERED AT CLOSING, SELLER HEREBY SPECIFICALLY DISCLAIMS ANY
WARRANTY, GUARANTY OR REPRESENTATION, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE,
OF, AS TO, OR CONCERNING (i) THE PROPERTY OR THE NATURE, DESIGN,
CONSTRUCTION AND CONDITION OF THE PROPERTY, INCLUDING THE WATER, SOIL AND
GEOLOGY, AND THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND
USES WHICH BUYER MAY ELECT TO CONDUCT THEREON, (ii) THE EXISTENCE OF
ANY HAZARDOUS MATERIALS OR ENVIRONMENTAL HAZARDS OR CONDITIONS AT THE PROPERTY
(INCLUDING THE PRESENCE OF ASBESTOS), AND (iii) COMPLIANCE WITH ANY OR ALL
APPLICABLE LAWS, INCLUDING DISABILITY, ACCESS, ZONING, SUBDIVISION AND
ENVIRONMENTAL LAWS. BUYER ACKNOWLEDGES THAT IT WILL INSPECT THE PROPERTY AND
BUYER WILL RELY SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT ON ANY
INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER, EXCEPT AS SET FORTH IN SECTION 11
OF THIS CONTRACT OR IN ANY DOCUMENTS DELIVERED AT CLOSING. THE SALE OF THE
PROPERTY AS PROVIDED FOR HEREIN IS MADE ON

 

12

 

AN “AS  IS,” “WHERE  IS”
BASIS AND “WITH ALL FAULTS,” AND BUYER EXPRESSLY ACKNOWLEDGES THAT,
EXCEPT AS OTHERWISE SPECIFIED IN SECTION 11 OF THIS CONTRACT OR IN
ANY DOCUMENTS DELIVERED AT CLOSING, SELLER SPECIFICALLY DISCLAIMS ANY WARRANTY
OR REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF
LAW, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF CONDITION,
HABITABILITY, MERCHANTABILITY, TENANTABILITY, WORKMANLIKE CONSTRUCTION, FITNESS
FOR A PARTICULAR PURPOSE OR ACCEPTABILITY FOR THE PURPOSE INTENDED BY
BUYER, IN RESPECT OF THE PROPERTY OR ITS CONDITION OR THE CONSTRUCTION,
PROSPECTS, OPERATIONS OR RESULTS OF OPERATIONS OF THE PROPERTY. SUBJECT TO THE
PROVISIONS OF THIS CONTRACT, ANY DOCUMENTS DELIVERED AT CLOSING AND ANY
WARRANTIES OR GUARANTIES ASSIGNED TO BUYER AT CLOSING: (y) UPON CLOSE OF
ESCROW, BUYER WILL ACCEPT THE PROPERTY SUBJECT TO ADVERSE STRUCTURAL, PHYSICAL,
ECONOMIC OR ENVIRONMENTAL CONDITIONS THAT MAY THEN EXIST, WHETHER OR NOT
REVEALED BY THE INSPECTIONS AND INVESTIGATIONS CONDUCTED BY BUYER, AND
(z) BUYER SPECIFICALLY WAIVES AND RELEASES ALL RIGHTS, REMEDIES, RECOURSE
OR OTHER BASIS FOR RECOVERY (INCLUDING ANY RIGHTS, REMEDIES, RECOURSE
OR BASIS FOR RECOVERY BASED ON NEGLIGENCE OR STRICT LIABILITY) THAT BUYER
WOULD OTHERWISE HAVE AGAINST SELLER OR ANY OF ITS AFFILIATES, ANY PERSON WHO
HOLDS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN SELLER OR ANY SUCH AFFILIATE
AND THE RESPECTIVE OFFICERS, DIRECTORS, TRUSTEES, AGENTS AND EMPLOYEES OF EACH
SUCH PERSON IN RESPECT OF THE PROPERTY OR ITS CONDITION OR THE CONSTRUCTION,
PROSPECTS, OPERATIONS OR RESULTS OF OPERATIONS OF THE PROPERTY. BUYER
ACKNOWLEDGES THAT THE DISCLAIMERS AND WAIVERS IN THIS SECTION 9 ARE AN
INTEGRAL PART OF THIS CONTRACT AND SELLER WOULD NOT HAVE ENTERED INTO THIS
CONTRACT WITHOUT THEM. NOTWITHSTANDING ANYTHING IN THIS CONTRACT TO THE CONTRARY,
BUYER WILL HAVE NO RECOURSE AGAINST SELLER’S INVESTOR PARTNER FOR ANY REASON, INCLUDING
BUT NOT LIMITED TO ANY DEFAULT OF SELLER.

 

10.           DEFAULT.

 

(a)           Default by Buyer. Unless
otherwise provided for herein, if the transaction contemplated hereby is not
consummated by reason of Buyer’s breach or other failure to timely perform all
obligations and conditions to be performed by Buyer under this Contract or
under the Tupelo Contract (defined below), then Seller may, as its sole and
exclusive remedy (whether at law or in equity), terminate this Contract and
receive the Earnest Money as liquidated damages; Buyer and Seller hereby agree
that actual damages would be difficult or impossible to ascertain and such
amount is a reasonable estimate of the damages for such breach or failure. Upon
such payment of the Earnest Money, this Contract shall terminate and neither
party shall have any further rights or obligations pursuant to this Contract,
other than as set forth herein with respect to rights or obligations which survive
termination. All other remedies with respect to the breach by Buyer of its
obligation to purchase the Property are expressly waived by Seller. Nothing in
this Section 10(a) limits Seller’s remedies for any breach by
Buyer of any of its obligations other than its obligation to purchase the
Property. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS SECTION 10(a), IF
BUYER BRINGS AN ACTION AGAINST SELLER FOR AN ALLEGED BREACH OR DEFAULT BY
SELLER OF ITS OBLIGATIONS UNDER THIS CONTRACT, RECORDS A LIS

 

13

 

PENDENS OR OTHERWISE ENJOINS OR RESTRICTS SELLER’S
ABILITY TO SELL AND TRANSFER THE PROPERTY OR REFUSES TO CONSENT TO OR INSTRUCT
RELEASE OF THE EARNEST MONEY TO SELLER IF REQUIRED BY ESCROW AGENT, SELLER
SHALL NOT BE RESTRICTED BY THE PROVISIONS OF THIS SECTION 10(a) FROM
BRINGING AN ACTION AGAINST BUYER SEEKING EXPUNGEMENT OR RELIEF FROM ANY
IMPROPERLY FILED LIS PENDENS, INJUNCTION OR OTHER RESTRAINT AND/OR
RECOVERING FEES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES) WHICH SELLER
MAY SUFFER OR INCUR AS A RESULT OF ANY BUYER’S ACTION BUT ONLY TO THE
EXTENT THAT SELLER IS THE PREVAILING PARTY; AND THE AMOUNT OF ANY SUCH FEES,
COSTS AND EXPENSES AWARDED TO SELLER SHALL BE IN ADDITION TO THE LIQUIDATED
DAMAGES SET FORTH HEREIN. NOTHING IN THIS CONTRACT SHALL, HOWEVER, BE DEEMED TO
LIMIT BUYER’S LIABILITY TO SELLER FOR DAMAGES OR INJUNCTIVE RELIEF FOR BREACH
OF BUYER’S INDEMNITY OBLIGATIONS UNDER SECTION 5(c) ABOVE OR
FOR ATTORNEYS’ FEES AND COSTS AS PROVIDED IN SECTION 21(f) BELOW.
The term “Tupelo Contract” means the Contract for Purchase and Sale,
dated May 19, 2010, between Buyer and Mississippi Ave Apartments LLC, a
Delaware limited liability company.

 

(b)           Default by Seller. If the
transaction contemplated hereby is not consummated by reason of Seller’s breach
or other failure to timely perform all obligations to be performed by Seller
under this Contract, then Buyer may, as its sole and exclusive remedy (whether
at law or in equity), either (i) terminate this Contract and receive the
Earnest Money (including the Option Money), whereupon Seller shall reimburse
Buyer for all Buyer’s reasonable third party out-of-pocket expenses (including
attorney’s fees, engineering fees, consultant’s fees, environmental fees, and
other costs incurred in connection with the potential acquisition of the
Property, the inspection and review of the Property and the negotiation of this
Contract) up to a maximum of $150,000 (provided Buyer provides reasonable
evidence of such costs to Seller), and neither party shall have any further
rights or obligations pursuant to this Contract, other than as set forth herein
with respect to rights or obligations which survive termination, or
(ii) enforce specific performance of Seller’s obligations hereunder;
provided, however, if specific performance is not an available remedy because
Seller has conveyed the Land or Improvements or any other material portion of
the Property to a third party unaffiliated with Buyer, then Buyer may bring suit,
in law or in equity, for damages. If Buyer chooses to enforce specific
performance of Seller’s obligations, then Buyer must commence action to enforce
specific performance within 60 days after the occurrence of Seller’s failure.
The remedies provided in this Section 10(b) are exclusive, and
Buyer waives all other remedies (including any right to obtain damages from
Seller) for Seller’s failure in performance prior to Closing. Nothing in this Section 10(b)
limits Buyer’s remedies for any breach by Seller of its obligations after
Closing or for any breach of representations and warranties that is discovered
by Buyer after Closing. In no case shall Seller ever be liable to Buyer under
any statutory, common law, equitable or other theory of law, either prior to or
following the Closing, for any lost rents, profits, “benefit of the bargain,”
business opportunities or any form of consequential damage in connection with
any claim, liability, demand or cause of action in any way or manner relating
to the Property, the condition of the Property, this Contract, or any
transaction or matter between the parties contemplated hereunder.

 

14

 

(c)                                  Cure Period for
Other Defaults. Subject to Sections 10(a) and 10(b),
if either party is in default under this Contract, then the non-defaulting
party may not take any remedy expressly granted to it under this Contract
unless and until (i) such non-defaulting party delivers notice of the
alleged default, in reasonable detail, to the defaulting party, and
(ii) the alleged default remains uncured at 5:00 p.m., Central Time,
on the 15th business day following delivery of the default
notice. The notice and cure provisions of this Section 10(c) do
not apply to a failure by Buyer to deliver the Earnest Money, the Purchase
Price or Buyer’s closing deliveries under Section 4(c) (other
than as a result of any failure by the Title Company to timely prepare the settlement
statement required hereunder) within the times required by this Contract.

 

11.           REPRESENTATIONS
AND WARRANTIES OF SELLER.

 

(a)                                  Seller hereby
represents and warrants to Buyer as of the Effective Date that the facts recited
below are true and correct. To the extent Buyer has or acquires actual
knowledge or is deemed to know prior to the expiration of the Feasibility
Period that these representations and warranties are inaccurate, untrue or
incorrect in any way, such representations and warranties shall be deemed
modified to reflect Buyer’s knowledge or deemed knowledge. The representations
and warranties contained in this Contract shall survive the Closing for a
period of nine months, but no claim shall be allowed on any such representation
or warranty unless notice of the claim and a detailed statement of the basis
for the claim is delivered by the claimant to the other party within such
nine-month period. Subject to the terms and conditions of Section 9,
nothing in this Section 11 limits the disclaimers, waivers,
releases and other provisions in Section 9, all of which will
survive Closing without limit as to time.

 

(i)            Seller has the requisite
corporate power and authority to sell and convey the Property as provided in
this Contract and to carry out Seller’s obligations hereunder, and all
requisite corporate action necessary to authorize Seller to enter into this
Contract and to carry out Seller’s obligations hereunder has been, or on the
Closing Date will have been, taken.

 

(ii)           Except as
disclosed in the Submission Matters and Additional Submission Matters, Seller
has received no written notice (except notices of conditions that have been
corrected) either (i) claiming violation of any applicable law or
restrictive covenant affecting any portion of the Land, Improvements or
Personal Property, or (ii) requiring or calling attention to the need for
any work, repairs, construction, alterations or installation in connection with
the Land and Improvements which is required in order to comply with any law or restrictive
covenant. Seller will provide to Buyer copies of any notices of such violations
it may receive following the Effective Date of this Contract.

 

(iii)          Seller has not received any
written notices of any pending or threatened action, suit, proceeding or claim
against Seller affecting the Land, Improvements or Personal Property or
any portion thereof relating to or arising out of the ownership, operation,
use, or occupancy of the Property in any court, or by or before any federal,
state, county or municipal department, commission, board, bureau or agency or
other governmental instrumentality.

 

(iv)          Seller has not
claimed the benefit of laws permitting a special use valuation for the purposes
of payment of ad valorem taxes on the Property.

 

15

 

(v)           Except as may
be disclosed in the Submission Materials, Seller has not received any written
notice of any violation of Applicable Environmental Laws at the Property. As
used in this Contract, the term “Applicable Environmental Laws” means
the following laws as amended from time to time: (A) the Resource
Conservation and Recovery Act of 1976, 42 USC §1801, et. seq.; (B) the
Comprehensive Environmental Response Compensation and Liability Act of 1980, 42
USC §9601 et. seq.; (C) any applicable regulations issued or promulgated
under or pursuant to any of the laws listed in the foregoing clauses
(A) or (B) by any department, agency or other administrative,
regulatory or judicial body; or (D) any similar laws of the State of
Texas.

 

(vi)          All information
set forth in the Initial Lease Schedule is true, correct, and complete as of
its date in all material respects and, as of the Closing Date all information
set forth in the Closing Lease Schedule will be true, correct, and complete in
all material respects as of the date of such Closing Lease Schedule.

 

(vii)         The Rent Roll and the
operating reports delivered with the Submission Matters are those which Seller
customarily relies upon in the ordinary course of its business.

 

(b)                                 As used in this
Contract, “Seller’s Knowledge” means the current actual knowledge of Kenneth
J. Valach, the President of the general partner of the general partner of
Seller, and Darren Schackman (the “Seller Representatives”) without
regard to the knowledge of others, including any former or other employees,
agents or contractors of Seller. The Seller Representatives shall not have any
personal liability whatsoever for the representations made herein or for any
other matters relating to this Contract.

 

(c)                                  In any action
brought to enforce the obligations of Seller under this Contract or any other document
delivered in connection herewith, the judgment or decree shall be subject to
the provisions of Section 11(a) and shall, otherwise in any
event, be enforceable against Seller only up to an amount not to exceed 1.5% of
the Purchase Price. In connection with this Contract, BlackRock Realty
Advisors, Inc. (“Advisor”) is acting as the investment adviser to
Seller’s limited partner and shall not have any individual liability hereunder.
No shareholder, officer, employee or agent of or consultant to Advisor or of or
to Seller shall be held to any personal liability hereunder, and no resort
shall be had to their property or assets, or the property or assets of Advisor
or of Seller for the satisfaction of any claims hereunder or in connection with
the affairs of Advisor or of Seller. Furthermore, Seller’s liability under this
Contract is explicitly limited to Seller’s interest in the Property, including
any proceeds thereof. Buyer shall have no recourse against any other property
or assets of Seller, any assets of the Advisor, or to any of the past, present
or future, direct or indirect, shareholders, partners, members, managers,
principals, directors, officers, agents, incorporators, affiliates or
representatives of Seller or the Advisor (collectively, “No Recourse Parties”)
or of any of the assets or property of any of the foregoing for the payment or
collection of any amount, judgment, judicial process, arbitral award, fee or
cost or for any other obligation or claim arising out of or based upon this
Contract and requiring the payment of money by Seller. Except as otherwise
expressly set forth in this Section 11(c), neither Seller nor any
No Recourse Party shall be subject to levy, lien, execution, attachment or
other enforcement procedure for the satisfaction of any of Buyer’s rights or
remedies under or with respect to this Contract, at law, in equity or
otherwise. Buyer shall not seek enforcement of any judgment, award,

 

16

 

right or remedy against any property or asset of
Seller or any No Recourse Parties other than Seller’s interest in the Property
or any proceeds thereof. The provisions of this Section 11(c) shall
survive the termination of this Contract.

 

12.           CONDITIONS TO
CLOSING.

 

(a)                                  If any of the
following conditions precedent to Buyer’s obligations under this Contract is not
satisfied, then Buyer may, at its option, waive such condition, or, as Buyer’s
sole and exclusive remedy, terminate this Contract by notice in writing to
Seller and receive back the Earnest Money (including the Option Money, in the
case of a termination under Section 12(a)(i) or (ii), but
excluding the Option Money, in the case of a termination under any other
provision of this Section 12(a)) and neither party shall have any
further rights or obligations pursuant to this Contract, other than as set
forth herein with respect to rights or obligations that survive termination.
The following shall be conditions precedent to Buyer’s obligations hereunder:

 

(i)            Seller shall
have complied with all covenants of Seller set forth herein at or before
Closing;

 

(ii)           All
representations and warranties of Seller shall be true and correct, in all material
respects, as of the Closing Date, without taking into consideration any
qualification to Seller’s Knowledge or the receipt of notice by Buyer or any
representative thereof;

 

(iii)          On the Closing
Date, there shall be no third party litigation pending or threatened, seeking
to enjoin the consummation of the sale and purchase hereunder, to recover title
to the Property or any part thereof or any interest therein, or to enjoin the
violation of any law, rule, regulation, restrictive covenant or zoning ordinance
with respect to the Land, Improvements or Personal Property; and

 

(iv)          The Title
Company must be prepared to issue a Title Policy for the property conforming to
the requirements of this Contract, provided that the Title Company’s failure to
issue any endorsements to the Title Policy requested by Buyer shall not affect
Buyer’s obligations under this Contract.

 

(b)                                 If the
following condition to Seller’s obligations under this Contract is not
satisfied, then Seller may, at its option, waive such condition or terminate
this Contract by notice in writing to Buyer, whereupon the Earnest Money (other
than the Option Money) shall be returned to Buyer and neither party shall have
any further rights or obligations pursuant to this Contract, other than as set
forth herein as to rights or obligations that survive termination. The
following is a condition precedent to Seller’s obligations hereunder: the
closing under the Tupelo Contract must occur simultaneously with the Closing
under this Contract, which condition includes but is not limited to Buyer’s
tender of the purchase price under the Tupelo Contract and Buyer’s delivery of
all its closing deliveries under the Tupelo Contract; provided, however, if
factors outside the reasonable control of Seller or Buyer render a simultaneous
closing impracticable, Seller and Buyer each may adjourn the Closing for up to
five business days to coordinate the simultaneous closings under this Contract
and the Tupelo Contract. Notwithstanding any other provision of this Section 12(b) to
the contrary: (i) if the closing under the Tupelo Contract does not occur
simultaneously with the Closing under this Contract as a result of a default by
the seller

 

17

 

under the Tupelo Contract or Seller under this
Contract, then the provisions of Section 10(b) shall control,
and Seller shall have no right to terminate this Contract pursuant to this Section 12(b);
and (ii) if the Tupelo Contract terminates pursuant to Section 10(b) or
Section 12(a)(i) or (ii) of the Tupelo Contract,
then Buyer may proceed with the Closing, and Seller shall have no right to
terminate this Contract pursuant to this Section 12(b).

 

13.           COVENANTS.

 

(a)                                  Continued
Operations. From the Effective Date until Closing, Seller will
(i) maintain and operate the Property in its current state and condition
in accordance with Seller’s customary manner, reasonable wear and tear and
damage from casualty excepted, (ii) not remove any item of Personal
Property from the Land or Improvements unless replaced by a comparable item of
Personal Property, (iii) maintain all permits, licenses and occupancy
certificates, including all development, building and use permits and
certificates of occupancy, (iv) perform, when due, all material obligations
under any and all agreements relating to the property and otherwise in
accordance with applicable laws, ordinances, rules and regulations,
(v) promptly notify Buyer of any fact of which Seller becomes aware which
causes any representations or warranties of Seller contained in this Contract
to become false in any material respect, and (vi) promptly forward to
Buyer any notices of code violations that Seller receives.

 

(b)                                 Rent Ready
Condition. If any apartment unit is vacated seven days or
more prior to Closing, then, prior to Closing, Seller shall use commercially
reasonable diligence to return such unit to rentable condition in accordance
with Seller’s customary cleaning, painting, and repair standards for vacant
units (the condition of such an apartment unit after cleaning is referred to
herein as a “Rent Ready Condition”). To the extent any such units are
not in a Rent Ready Condition by Closing, the Purchase Price shall be credited
in an amount equal to $500 for each unit that is not in a Rent Ready Condition.

 

(c)                                  Leasing. From the
Effective Date through Closing, Seller shall conduct its leasing activities in
Seller’s normal course of business; provided, however, that after the
expiration of the Feasibility Period (i) Seller shall not enter into any
new leases with corporate apartment providers without Buyer’s prior written
approval, (ii) Seller shall not enter into any new leases for retail uses
without Buyer’s prior written approval, and (iii) all new Tenant Leases
shall be on the form of lease currently used by Seller or such other form as
may be approved by Buyer in its reasonable discretion.

 

(d)                                 Website. Seller shall
maintain the Website and related material though the Closing.

 

14.           CONDEMNATION. Immediately
upon obtaining knowledge of the institution of any proceedings for the
condemnation of the Property, or any portion thereof, Seller will notify Buyer
of the pendency of such proceedings. If any condemnation proceedings affecting
the Property, or any material portion thereof (a “material portion” being 5% or
more of the improvements on the Property or the absence of reasonable access to
the Property), are commenced or threatened in writing prior to Closing, then
Buyer may, at its option, (i) terminate this Contract whereupon the
Earnest Money (other than the Option Money) shall be refunded to Buyer, and
neither party shall have any further rights or obligations pursuant to this
Contract, other than as set forth herein with respect to rights or obligations
that survive termination; or (ii) waive its objections.

 

15.           DAMAGE TO PROPERTY. Seller agrees
to give Buyer prompt notice of any fire or other casualty affecting the Land,
the Improvements or the Personal Property between the Effective

 

18

 

Date and the Closing that would allow Buyer to
terminate this Contract or that Seller reasonably estimates would cost more
than $25,000 to repair. Buyer or its designated agents may enter upon the
Property from time to time during normal business hours and upon advance notice
to Seller in accordance with this Contract for the purpose of inspecting any
such casualty.

 

(a)                                  If, prior to
the Closing, the Property is damaged by a fire or other casualty that would cost
$500,000 or more to repair, then in such event, Buyer may, at its option, elect
to terminate this Contract by written notice to Seller within 20 days after the
date of Seller’s notice to Buyer of the casualty or at the Closing, whichever
is earlier, in which case the Earnest Money (other than the Option Money) will
be refunded to Buyer, and neither party will have any further rights or
obligations hereunder, other than as set forth herein with respect to rights
and obligations which survive termination. If neither Buyer nor Seller timely
makes its election to terminate this Contract, then the Closing will take place
as provided herein without reduction of the Purchase Price, and there will be
assigned to Buyer at the Closing all interest of Seller in and to any casualty
insurance proceeds received or to be received by reason of such damage or
destruction (net of proceeds of rental loss and business interruption insurance
allocable to the period through the Closing Date, amounts expended by Seller to
stabilize or repair the Property and costs incurred by Seller in making proof
of loss or settling claims with insurers) and Seller shall tender at Closing
the deductible amounts under Seller’s insurance policies (including business
interruption and rental loss insurance of Seller that would be applicable to
the period after the Closing).

 

(b)                                 If, prior to
the Closing, the Property is damaged by a fire or other casualty that would cost
less than $500,000 to repair, then in such event (i) this Contract shall
not terminate, (ii) Seller keep Buyer informed of Seller’s remedial actions
with respect to such fire or other casualty, and (iii) at Closing, Seller
shall assign and transfer to Buyer all interest of Seller in and to any
casualty insurance proceeds received or to be received by reason of such damage
or destruction (net of proceeds of rental loss and business interruption
insurance allocable to the period through the Closing Date, amounts expended by
Seller to stabilize or repair the Property and costs incurred by Seller in
making proof of loss or settling claims with insurers) and Seller shall tender
at Closing the deductible amounts under Seller’s insurance policies (including
business interruption and rental loss insurance of Seller that would be
applicable to the period after the Closing). If the damage or destruction arises
out of an uninsured risk, Seller shall elect, by written notice within 10 days
of the occurrence of such damage or destruction, either to terminate this
Contract or to close the transaction contemplated hereby with a reduction of
the Purchase Price equal to the costs of repairing the Property, as reasonably
estimated by an engineer engaged by Seller and reasonably acceptable to Buyer.

 

(c)                                  If and to the
extent that Seller is required in this Section 15 to assign and
transfer to Buyer Seller’s right, title, and interest in and to insurance
proceeds, (i) Seller shall use commercially reasonable efforts to cause
its insurance carriers pay any unpaid insurance proceeds to which Buyer is
entitled (including business interruption and rental loss insurance of Seller
that would be applicable to the period after the Closing) to Buyer and for
Buyer’s benefit, and (ii) if Seller’s insurance carriers do not permit
assignment of such insurance proceeds to Buyer, then upon receipt of all such
unpaid insurance proceeds, Seller shall pay the same to Buyer. The provisions
of this Section 15(c) shall survive the Closing.

 

19

 

16.           REPRESENTATIONS, WARRANTIES
AND COVENANTS OF BUYER.

 

(a)                                  Buyer’s
Representations. Buyer represents and warrants to Seller, which
representations and warranties shall be deemed made by Buyer to Seller as of
the Effective Date and also as of the Closing Date:

 

(i)            Buyer has the
requisite power and authority to purchase the Property as provided in this Contract
and to carry out Buyer’s obligations hereunder, and that all requisite action
necessary to authorize Buyer to enter into this Contract and to carry out
Buyer’s obligations hereunder has been, or on the Closing Date will have been,
taken.

 

(ii)           No petition has
been filed by or against Buyer under the Federal Bankruptcy Code or any similar
laws, nor does Buyer plan to file any such petition before Closing or within 90
days after Closing.

 

(iii)          Buyer
acknowledges that California State Teachers’ Retirement System (“CalSTRS”),
a member of Seller’s limited partner, is a unit of the California State and
Consumer Services Agency established pursuant to Title I, Division 1, Parts 13
and 14 of the California Education Code, Sections 22000, et seq., as amended
(the “Education Code”). Buyer further acknowledges that such member is
prohibited from engaging in certain transactions with or for the benefit of an
“employer”, “employing agency”, “member”, “beneficiary” or “participant” (as
those terms are defined or used in the Education Code). In addition, Buyer
acknowledges that such member may be subject to certain restrictions and
requirements under the Education Code. Accordingly, Buyer represents and
warrants to Seller that (1) Buyer is neither an employer, employing
agency, member, beneficiary or participant of CalSTRS; (2) Buyer has not
made any contribution or contributions to CalSTRS; (3) neither an
employer, employing agency, member, beneficiary nor participant of CalSTRS, nor
any person who has made any contribution to CalSTRS, nor any combination
thereof, is related to Buyer by any relationship described in
Section 267(b) of the Code; and (4) neither CALSTRS, BlackRock,
nor any Person who Buyer knows to be one of their Related Parties (collectively
an “Investor Person”) has received or will receive, directly or
indirectly, any payment, consideration or other benefit from, nor does any
Investor Person have any agreement or arrangement with, Buyer or any person or
entity affiliated with Buyer, relating to the transactions contemplated by this
Contract except as expressly set forth or referred to in this Contract.

 

(iv)          Buyer
represents and warrants to Seller that neither Buyer nor any constituent owner
or affiliate that owns a controlling interest therein is, or shall be at any
time from the Effective Date through the Closing Date, in violation of any laws
relating to terrorism or money laundering (collectively, the “Anti-Terrorism
Laws”), including Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001, and relating to Blocking Premises and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism (the “Executive Order”) and/or the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (Public Law 107-56) (the “USA Patriot Act”).
Buyer further represents and warrants that neither Buyer nor any of its
constituent owners or

 

20

 

affiliates that own a controlling interest therein
is or shall be during the period from the Effective Date through the Closing
Date, a “Prohibited Person,” which is defined as follows: (i) a
person or entity that is listed in the Annex to, or is otherwise subject to,
the provisions of the Executive Order; (ii) a person or entity owned or
controlled by, or acting for or on behalf of, any person or entity that is
listed in the Annex to, or is otherwise subject to the provisions of, the
Executive Order; (iii) a person or entity with whom the other party is
prohibited from dealing with or otherwise engaging in any transaction by any
Anti-Terrorism Law, including without limitation the Executive Order and the
USA Patriot Act; (iv) a person or entity who commits, threatens or conspires
to commit or support “terrorism” as defined in Section 3(d) of the
Executive Order; or (v) a person or entity that is named as a “specially
designated national and blocked person” on the then-most current list published
by the U.S. Treasury Department Office of Foreign Assets Control at its
official website, http://www.treas.gov/offices/eotffc/ofac/sdn/t11sdn.pdf, or
at any replacement website or other replacement official publication of such
list.

 

(b)                                 Buyer’s
Covenants. After Closing, Buyer shall remove all signage and
identifying marks from the Property referring to Seller’, Seller’s affiliates,
Seller’s property manager or the Excluded IP. Buyer shall notify Seller of the
removal and offer Seller the opportunity to take any such removed signage. Buyer
may elect instead to provide access to the Property after Closing to Seller and
Seller’s agents and employees so that Seller, its agents and employees may
instead remove such signage and identifying marks, at times and for a duration
that is commercially reasonable given the removal to be completed. The
provisions of this Section 16(b) shall survive the Closing.

 

17.           ASSIGNMENT. Except as
otherwise provided herein, Buyer may not assign this Contract without Seller’s
prior written consent, such consent to be given or denied in Seller’s
reasonable discretion. Notwithstanding the foregoing, Buyer may assign its
rights under this Contract, in whole or in part, to (i) any affiliate or
direct or indirect subsidiary of Buyer or (ii) any entity in which Buyer,
or the principals thereof, have control as defined herein. Upon both the
assignment of this Contract and the assignee’s delivery to the Title Company of
the full amount of Closing funds required to be delivered by the Buyer (or its
assignee) to the Title Company, the original Buyer will be released from all
liabilities and obligations under this Contract, provided that such assignee
has assumed all of the liabilities and obligations of the Buyer under this
Contract. For purposes of this Contract, “affiliate” means, in respect
of Buyer: (a) any entity that controls, is controlled by, or is under
common control, with the entity in question, or (b) any entity that
participates in any investment program sponsored by Behringer Harvard Holdings,
LLC, or any of its direct or indirect parents or subsidiaries. For purposes of
this Contract, the term “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of an entity, whether through the ownership of voting securities or
otherwise.

 

18.           EXCHANGE. Buyer may
consummate the acquisition of the Property as part of a like kind exchange (the
“Exchange”) pursuant to Section 1031 of the Internal Revenue Code
of 1986, as amended (the “Code”), and, in connection therewith may
assign its rights under this Contract to a qualified intermediary. Seller will
reasonably cooperate with Buyer in the Exchange provided that Seller is not
thereby required to take any additional risk and Buyer pays any additional costs
that would not otherwise have been incurred by Seller or Buyer had Buyer not
consummated its purchase through the Exchange. Completion of such substitution
or any related exchange is not a condition to sale of the Property as
contemplated by this Contract, and Buyer may not postpone

 

21

 

the Closing Date to allow for completion of such
substitution or any related exchange. Buyer agrees to indemnify and defend
Seller and hold Seller harmless from and against any loss, damage, liability,
obligation, claim, suit, cause of action, judgment, settlement, penalty, fine,
cost or expense (including fees and disbursements of attorneys and other
professionals and court costs) arising out of or relating to Seller’s participation
in an exchange that Buyer requests. Under no circumstances will Seller be
obligated to take title to any property (other than the Property) in order to
complete an Exchange.

 

19.           AUDIT BY BUYER. Seller
acknowledges that Buyer may cause to be prepared audited financial statements
with respect to the Property in compliance with the policies of Buyer and
certain laws, including applicable regulations promulgated by the Securities
and Exchange Commission. Seller shall use commercially reasonable efforts to
cooperate with Buyer’s auditors in the preparation of such audited financial
statements (including making available for interview, with reasonable advance
notice from Buyer, by Buyer and Buyer’s auditors the management personnel of
Seller who are responsible for the day-to-day operation of the Property and the
keeping of the books and records in respect of the operation of the Property),
for two years after Closing. In addition, if Seller has audited financial
statements, Seller shall promptly provide Buyer with a copy of such audited
financial statements for the most-recent period for which they have been
prepared. Seller acknowledges that any such audit may require review of records
existing for up to three years prior to the date of Closing, and Seller shall
make available to Buyer any records in Seller’s possession or control covering
such period. If, after the Closing Date, Seller obtains an audited financial
statement for a fiscal period prior to the Closing Date that was not completed
as of the Closing Date, then Seller shall promptly provide Buyer with a copy of
such audited financial statement. Seller acknowledges that providing its
audited financial statements to Buyer does not necessarily obviate Buyer’s need
to perform Buyer’s own audit. The provisions of this Section 19
shall survive the Closing.

 

20.           PUBLICITY. Seller and
Buyer each agrees that (a) prior to the Closing, neither Seller nor Buyer
shall issue any press release with respect to the transaction contemplated by
this Contract without the prior consent of the other, except to the extent
required by applicable law, and (b) after the Closing, either Seller or
Buyer shall have the right to issue a Permitted Release. “Permitted Release”
means a press release announcing the purchase and sale of the Property and the
resulting ownership and control of the Property so long as the release does
not, except to the extent required by applicable law, disclose or reference
(x) the sale price or any other economic terms relating to the Property or
the sale of the Property, (y) the identity of the Seller or its affiliates
or any identifying information relating to Seller and its affiliates (unless
specifically pre-approved in writing by Seller in Seller’s sole discretion), or
(z) the name “Alexan” or any of the other Excluded IP (unless specifically
pre-approved in writing by Seller in Seller’s sole discretion). Notwithstanding
the foregoing, any press release other than a Permitted Release issued by
either Seller or Buyer shall be subject to the review and approval of the other
party hereto (which approval shall not be unreasonably withheld, conditioned or
delayed).

 

21.           MISCELLANEOUS.

 

(a)                                  Any notice
required or permitted to be delivered hereunder shall be in writing and shall be
deemed received: (i) upon receipt when personally delivered; (ii) on
the next business day after deposit when sent by nationally-recognized
overnight courier service, charges prepaid, and properly addressed, for next
business day delivery; or (iii) upon confirmation of successful
transmission to each recipient’s facsimile machine when sent by facsimile; or
(iv) upon transmission by electronic mail (provided that receipt is
confirmed by telephone or in a return electronic mail message sent by the
recipient or an

 

22

 

assistant thereof); provided, however, notices sent
pursuant to Section 10(c) shall not be transmitted by
electronic mail. For purposes of this Section 21(a), the addresses
of each party will be that set forth below the signature of such party hereto
with a copy to the other addressees set forth below the signature of such
party. Either party may change its address for notice from time to time by
delivery of at least ten days prior written notice of such change to the other
party hereto in the manner prescribed herein.

 

(b)                                 The
Article and Section headings in this Contract are for convenience of
reference only and shall not be deemed to alter or affect the meaning or
interpretation of any provision hereof. Unless the context otherwise requires,
(i) all references to Sections, Schedules or Exhibits contained in this
Contract are references to sections, schedules and exhibits of or to this
Contract, (ii) words in the singular include the plural and vice versa, and (iii) words of any
gender include each other gender. Whenever in this Contract, any party is
permitted or required to make a decision in its discretion, give its approval,
or elect an option, such party shall be entitled to act in its sole and
absolute discretion in making such decision, giving such approval, or exercise
such option, unless a different standard is expressly provided in the
applicable provision hereof. No provision of this Contract will be interpreted
in favor of, or against, any party hereto by reason of the extent to which any
such party hereto or its counsel participated in the drafting hereof or by
reason of the extent to which any such provision is inconsistent with any prior
draft hereof or thereof.

 

(c)                                  As used in this
Contract the following words or phrases have the following meanings: (i) “hereby,”
“herein,”  “hereof,” “hereto,” “hereunder”
and words of similar import refer to this Contract as a whole and not to any particular
provision hereof; (ii) “include,” “including” or derivatives
thereof means “including without limitation”; and (iii) “law” means any
statute, regulation, rule, judicial order and any other legal pronouncement
having the effect of law.

 

(d)                                 Seller shall
remove the Property from the market upon execution of this Contract and deal
exclusively with Buyer until the expiration of the Feasibility Period and
thereafter during the term of this Contract. If Buyer elects to terminate this
Contract during the Feasibility Period, or if this Contract otherwise
terminates, then the requirement to deal exclusively with Buyer shall no longer
apply.

 

(e)                                  This Contract
will be construed under and in accordance with the laws of the State of Texas,
and all obligations of the parties created hereunder are performable in Dallas
County, Texas.

 

(f)                                    Any party to
this Contract who is the prevailing party in any legal proceeding against the other
party brought under or with respect to this Contract or transaction will be
additionally entitled to recover court costs and reasonable attorneys’ fees
from the non-prevailing party.

 

(g)                                 This Contract
will be binding upon and inure to the benefit of the parties hereto, their respective
legal representatives, successors, and permitted assigns. A document or
signature page transmitted by facsimile or circulated by electronic mail
shall be binding on any party whose signature appears thereon.

 

(h)                                 In case any one
or more of the provisions contained in this Contract shall for any reason be
held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality,

 

23

 

or unenforceability will not affect any other
provision hereof, and this Contract will be construed as if such invalid,
illegal, or unenforceable provision had never been contained herein.

 

(i)                                     This Contract
constitutes the sole and only agreement of the parties hereto with respect to the
subject matter hereof and supersedes any prior understandings or written or
oral agreements between the parties respecting the subject matter hereof and
cannot be changed except by their written consent.

 

(j)                                     Time is of the
essence in the performance of this Contract.

 

(k)                                  The parties may
execute this Contract in one or more identical counterparts, all of which when
taken together will constitute one and the same instrument.

 

(l)                                     Whenever any
determination is to be made or action to be taken on a date specified in this
Contract, if such date shall fall upon a Saturday, Sunday or holiday observed
by federal savings banks in the State of Texas, the date for such determination
or action will be extended to the first business day immediately thereafter.

 

(m)                               Unless
otherwise expressly herein stated to survive, all representations, covenants, indemnities,
conditions and agreements contained in this Contract shall merge into and be
superseded by the various documents executed and delivered at Closing and shall
not survive the Closing. Seller shall have no liability to Buyer after Closing
for any matter disclosed by Seller pursuant to the terms of this Contract or
disclosed to Buyer prior to Closing.

 

(n)                                 Contemporaneously
with the execution and delivery of this Contract, Buyer has delivered to Seller
and Seller hereby acknowledges the receipt of a check in the amount of $100.00 (“Independent
Contract Consideration”), which amount the parties bargained for and agreed
to as consideration for Buyer’s exclusive right to inspect and purchase the
Property pursuant to this Contract and for Seller’s execution, delivery and
performance of this Contract. The Independent Contract Consideration is in
addition to and independent of any other consideration or payment provided in
this Contract, is nonrefundable, and it is fully earned and will be retained by
Seller notwithstanding any other provision of this Contract to the contrary.

 

REMAINDER
OF PAGE INTENTIONALLY BLANK.

SIGNATURE PAGE(S) FOLLOWS.

 

24

 

EXECUTED on the dates set forth below to be effective as of the
Effective Date.

 

	
   

  	
   

  	
  SELLER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FITZHUGH APARTMENTS LIMITED PARTNERSHIP,

  a Delaware limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NT 104 Fitzhugh Limited Partnership, a Delaware limited partnership,
  its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  NT 101 Development 2006 GP LLC, a Delaware

  
	
   

  	
   

  	
   

  	
   

  	
  limited liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Timothy J. Hogan

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Timothy J. Hogan

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fitzhugh Apartments Limited Partnership

  
	
   

  	
   

  	
  949 South Coast Drive, Suite 400 

  
	
   

  	
   

  	
  Costa Mesa, California 92626

  
	
   

  	
   

  	
  Attention: Eric Lezak

  
	
   

  	
   

  	
  Telephone: 714-966-9355 x 113 

  
	
   

  	
   

  	
  Facsimile: 714-966-9353

  
	
   

  	
   

  	
  Email: elezak@tcresidential.com

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Michael K. Ording, Esq.

  
	
   

  	
   

  	
  Jones Day

  
	
   

  	
   

  	
  325 John H. McConnell Blvd., Suite 600 

  
	
   

  	
   

  	
  Columbus, Ohio 43215

  
	
   

  	
   

  	
  Telephone: 614-281-3815

  
	
   

  	
   

  	
  Facsimile: 614-461-4198

  
	
   

  	
   

  	
  Email: mkording@jonesday.com

  

 

Contract
for Purchase and Sale

Signature
Pages

 

 

	
   

  	
   

  	
  BUYER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BEHRINGER HARVARD MULTIFAMILY OP I LP, 

  a Delaware limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  BHMF, Inc.,

  
	
   

  	
   

  	
   

  	
  a Delaware corporation,

  its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Robert T. Poynter

  
	
   

  	
   

  	
   

  	
  Name: 

  	
  Robert T. Poynter

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Behringer Harvard Multifamily OP I LP

  
	
   

  	
   

  	
   

  	
   

  	
  15601 Dallas Parkway, Suite 600

  
	
   

  	
   

  	
   

  	
   

  	
  Addison, Texas 75001

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: Mark T. Alfieri

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone: 214-655-1600

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile: 214-655-1610

  
	
   

  	
   

  	
   

  	
   

  	
  Email: malfieri@behringerharvard.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Miller, Egan, Molter & Nelson LLP 

  
	
   

  	
   

  	
   

  	
   

  	
  4514 Cole Avenue, Suite 1250 

  
	
   

  	
   

  	
   

  	
   

  	
  Dallas, Texas 75205

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: Walter D. Miller

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone: 214-628-9502

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile: 214-628-9505

  
	
   

  	
   

  	
   

  	
   

  	
  Email: walt.miller@MillerEgan.com

  

 

Contract
for Purchase and Sale

Signature
Pages

 

 

	
   

  	
   

  	
  TITLE COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The undersigned hereby acknowledges receipt of this Contract and
  agrees to serve as the escrow holder of the Earnest Money and as the Title
  Company in accordance with the provisions of this Contract.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CHICAGO TITLE INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Joycelyn Armstrong

  
	
   

  	
   

  	
  Name:

  	
  Joycelyn Armstrong

  
	
   

  	
   

  	
  Title:

  	
  Commercial Escrow Officer

  

 

 

EXHIBITS:

A — Description of the Land

B — Statutory Special Warranty Deed

C — Bill of Sale

D — Assignment and Assumption Agreement

E — Assignment of Tenant Leases and Assumption

F — Tenant Notice Letter

G —Survey Certification

 

Contract
for Purchase and Sale

Signature Pages

 

 

EXHIBIT A

DESCRIPTION OF THE LAND

 

TRACT 1:

Lot 1, Block 11/2000, of ALEXAN FITZHUGH ADDITION, an Addition to the
City of Dallas, Dallas County, Texas, according to the map/plat thereof
recorded under Clerk’s File No. 20080042332, Real Property Records, Dallas
County, Texas.

 

TRACT 2:

Lot 1, Block 14/2001, of ALEXAN FITZHUGH ADDITION, an Addition to the
City of Dallas, Dallas County, Texas, according to the map/plat thereof
recorded under Clerk’s File No. 20080042332, Real Property Records, Dallas
County, Texas.

 

1

 

EXHIBIT B

to

Contract for Purchase and Sale

 

FORM OF
SPECIAL WARRANTY DEED

 

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL
PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION
FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS
FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR
DRIVER’S LICENSE NUMBER.

 

SPECIAL
WARRANTY DEED

 

	
  STATE OF TEXAS

  	
  §

  	
   

  
	
   

  	
  §

  	
  KNOW ALL PERSONS BY THESE PRESENTS:

  
	
  COUNTY OF DALLAS

  	
  §

  	
   

  

 

That FITZHUGH APARTMENTS LIMITED PARTNERSHIP, a
Delaware limited partnership (“Grantor”),  for and in
consideration of the sum of $10.00 and other good and valuable consideration to
it in hand paid by BEHRINGER HARVARD [                ],
LLC, a Delaware limited liability company, whose address is 15601 Dallas
Parkway, Suite 600, Addison, Texas 75001 (“Grantee”), the receipt
and sufficiency of which are hereby acknowledged and confessed, has GRANTED,
BARGAINED, SOLD and CONVEYED, and by these presents does hereby GRANT, BARGAIN,
SELL and CONVEY, unto Grantee all of the real property situated in Dallas
County, Texas, described on Exhibit A, which is attached hereto and
made a part hereof for all purposes, together with all and singular the rights,
benefits, privileges, easements, tenements, hereditaments, and appurtenances
thereon or in anywise appertaining thereto, and together with all buildings and
improvements located thereon and any right, title, and interest of Grantor in
and to adjacent streets, alleys, strips, gores, and rights-of-way
(collectively, the “Property”).

 

In addition, Grantor hereby grants, bargains, sells
and conveys to Grantee, WITHOUT WARRANTY, all of Grantor’s right, title, and
interest, if any, in and to: (i) any and all rights of ingress and egress
to and from the Property, or any portion thereof, and any of Grantor’s rights
to use same; (ii) any and all present and reversionary mineral rights and
interests of Grantor relating to the Property, or any portion thereof;
(iii) any and all rights to the present or future use of wastewater,
wastewater capacity, drainage, water or other utility facilities to the extent
the same pertain to or benefit the Property, or any portion thereof, or the
improvements located thereon, including, without limitation, all reservations
of or commitments or letters covering any such use in the future, whether now
owned or hereafter acquired; (iv) any and all roads, streets, alleys, and
ways (open or proposed) affecting, crossing, fronting, or bounding the
Property, or any portion thereof, including any awards made or to be made
relating thereto including, without limitation, any unpaid awards or damages
payable by reason of damages the Property, or any portion thereof, or by reason
of a widening of or changing of the grade; (v) any and all strips, gores
or pieces of property abutting, bounding or which are adjacent or contiguous to
the Property, or any portion thereof (whether owned or claimed by deed,
limitations or otherwise); and (vi) any and all reversionary interests in
and to the Property, or any portion thereof.

 

The warranty of Grantor provided herein is made and
accepted subject to those encumbrances and exceptions (the “Permitted
Encumbrances”) set forth on Exhibit B, which is attached hereto
and made a part hereof for all purposes, but only to the extent that they are
valid and subsisting and affect or relate to the Property.

 

2

 

TO HAVE AND TO HOLD the Property unto Grantee, its
successors and assigns, forever; and Grantor does hereby bind itself, its
successors and assigns, to WARRANT AND FOREVER DEFEND all and singular the
Property unto Grantee, its successors and assigns, against every person
whomsoever lawfully claiming or to claim the same, or any part thereof, except
as to the Permitted Encumbrances, by, through or under Grantor, but not
otherwise.

 

Dated this     day
of                          ,
2010.

 

	
   

  	
  FITZHUGH APARTMENTS LIMITED PARTNERSHIP,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  NT 104 Fitzhugh Limited Partnership, a Delaware limited

  
	
   

  	
   

  	
  partnership, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NT 101 Development 2006 GP LLC, a Delaware

  
	
   

  	
   

  	
   

  	
  limited liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
						

 

State of                                  )

     ) SS.

County of                              )

 

The foregoing instrument was
acknowledged before me this
              day
of
              ,
20    , by                               ,
the                                         of
NT 101 Development 2006 GP LLC, a Delaware limited liability company, the
general partner of NT 104 Fitzhugh Limited Partnership, a Delaware limited
partnership, the general partner of Fitzhugh Apartments Limited Partnership, a
Delaware limited partnership, on behalf of such entity in such capacity.

 

Witness my hand and official seal. 

 

My Commission Expires:

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Notary Public

  

 

[Attach:

Exhibit A 

Exhibit B]

 

3

 

EXHIBIT C

to

Contract for Purchase and Sale

 

BILL OF
SALE

 

	
  STATE OF TEXAS

  	
  §

  	
   

  
	
   

  	
  §

  	
  KNOW ALL PERSONS BY THESE PRESENTS:

  
	
  COUNTY OF DALLAS

  	
  §

  	
   

  

 

THAT FITZHUGH
APARTMENTS LIMITED PARTNERSHIP, a Delaware limited partnership (“Seller”),
for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and
other good and valuable consideration to Seller in hand paid by
                                                                                                     ,
a                             (“Buyer”),
the receipt of which is hereby acknowledged, has bargained, sold, delivered and
assigned, and by these presents does bargain, sell, deliver and assign, unto
Buyer all equipment, fixtures, appliances, inventory, computers, computer
hardware, computer software, furniture, furnishings, drapes and floor
coverings, office equipment and supplies, heating, lighting, refrigeration,
plumbing, ventilating, incinerating, cooking, laundry, communication,
electrical, dishwashing, and air conditioning equipment, disposals, window
screens, storm windows, recreational equipment, pool equipment, patio
furniture, sprinklers, hoses, tools and lawn equipment and other tangible
personal property of whatever kind or character owned by Seller and attached to
or installed or located on or in that certain real property situated in Dallas,
Dallas County, Texas, and the improvements situated thereon, such tract of land
being described on Exhibit A, attached hereto and made a part
hereof for all purposes, including, without limitation, the items listed on Exhibit B,
attached hereto and made a part hereof for all purposes (collectively, the “Personal
Property”).

 

THE PERSONAL PROPERTY IS TRANSFERRED TO BUYER
“AS IS” AND “WHERE IS” AND WITH ALL FAULTS, DEFECTS OR OTHER ADVERSE MATTERS. SELLER
SPECIFICALLY DISCLAIMS ALL WARRANTIES OR REPRESENTATIONS OF ANY KIND OR
CHARACTER, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE (INCLUDING
WARRANTIES OF MERCHANTABILITY AND WARRANTIES OF FITNESS FOR USE OR
ACCEPTABILITY FOR THE PURPOSE INTENDED BY BUYER) WITH RESPECT TO THE
PERSONAL PROPERTY OR ITS CONDITION, EXCEPT AS OTHERWISE PROVIDED HEREIN.
CONVEYANCE OF THE PERSONAL PROPERTY IS SUBJECT TO OTHER LIMITATIONS (AND
EXCEPTIONS THEREFROM) CONTAINED IN THE CONTRACT FOR PURCHASE AND SALE, DATED
MAY          , 2010, BETWEEN
BUYER (AS ASSIGNEE) AND SELLER (THE “PURCHASE CONTRACT”), WHICH LIMITATIONS
SURVIVE THE CLOSING (AS THAT TERM IS DEFINED IN THE PURCHASE CONTRACT).

 

Seller does hereby bind itself, its successors and
assigns, to forever warrant and defend title to the Personal Property unto
Buyer, its successors and assigns, against every person whomsoever lawfully
claiming or to claim the same or any part thereof, by, through or under Seller,
but not otherwise.

 

REMAINDER
OF PAGE INTENTIONALLY BLANK.

SIGNATURE PAGE(S) FOLLOWS.

 

4

 

EXECUTED as of the date first set forth above.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  FITZHUGH APARTMENTS LIMITED PARTNERSHIP, 

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  NT 104 Fitzhugh Limited Partnership, a Delaware limited 

  partnership, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NT 101 Development 2006 GP LLC, a Delaware

  limited liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
						

 

5

 

EXHIBIT A

to

Bill of Sale

 

PROPERTY
DESCRIPTION

 

TRACT 1:

Lot 1, Block 11/2000, of ALEXAN FITZHUGH ADDITION, an Addition to the
City of Dallas, Dallas County, Texas, according to the map/plat thereof
recorded under Clerk’s File No. 20080042332, Real Property Records, Dallas
County, Texas.

 

TRACT 2:

Lot 1, Block 14/2001, of ALEXAN FITZHUGH ADDITION, an Addition to the
City of Dallas, Dallas County, Texas, according to the map/plat thereof
recorded under Clerk’s File No. 20080042332, Real Property Records, Dallas
County, Texas.

 

6

 

EXHIBIT B

to

Bill of Sale

 

LIST OF
PERSONAL PROPERTY

[ATTACHED]

 

7

 

EXHIBIT D

to

Contract for Purchase and Sale

 

ASSIGNMENT
AND ASSUMPTION AGREEMENT

 

THIS ASSIGNMENT
AND ASSUMPTION AGREEMENT (this “Assignment”) is made and entered
into as of              ,
2010, by and between FITZHUGH APARTMENTS
LIMITED PARTNERSHIP, a Delaware limited partnership (“Assignor”),
and                                                   , a                                                                     (“Assignee”).

 

RECITALS:

 

A.                                   Contemporaneously
with the execution and delivery of this Assignment, Assignor is conveying to Assignee
by Special Warranty Deed that certain real property, with the improvements
located thereon, situated in Dallas County, Texas (the “Land”) and being
more particularly described on Exhibit A, which is attached hereto
and made a part hereof for all purposes; and

 

B.                                     Assignee
desires to purchase from Assignor, and Assignor desires to sell and assign to Assignee,
certain intangible personal property, as more particularly described below.

 

AGREEMENTS:

 

NOW, THEREFORE, for and in consideration of the
premises and the agreements and covenants herein set forth, together with the
sum of TEN DOLLARS ($10.00) and other good and valuable consideration on this
day paid and delivered by Assignee to Assignor, the receipt and sufficiency of
which are hereby acknowledged and confessed by Assignor, Assignor does hereby
ASSIGN, TRANSFER, SET OVER, DELIVER and CONVEY unto Assignee, its successors
and assigns, the following properties (collectively, the “Assigned
Properties”):

 

1.                                       The following “Intangibles”:
to the extent assignable, all of Assignor’s right, title, and interest in and
to (i) all bonds, permits, licenses (including software licenses),
approvals, utility rights, development rights and similar rights related to the
Property (as that term is defined in the Contract for Purchase and Sale, dated
May        , 2010, between Assignee (by
way of assignment from its predecessor in interest) and Assignor (the “Purchase
Contract”), or any portion thereof, whether granted by governmental
authorities or private persons, (ii) all trademarks, trade names, or
symbols under which the Property, or any portion thereof, is operated including
the name of “Fitzhugh”, but excluding the names “Crow,” “Trammell Crow,”
“Trammell Crow Residential,” “TCR” and “Alexan” and derivatives of any such
names and the “TCR” logo as well as trademarks, trade names, and service marks
containing any of such names or such logo (collectively, the “Excluded IP”),
(iii) all telephone numbers and exchanges serving the Property, or any
portion thereof, (iv) all business and goodwill of Assignor related to the
Property, or any portion thereof, (v) all site plans, surveys, soil and
substrata studies, architectural drawings, “as built” plans and specifications,
engineering plans, floor plans, and landscape plans that relate exclusively to
the Property, or any portion thereof, (vi) all leasing materials and brochures,
ledger cards, leasing records, leasing applications, tenant credit reports and
maintenance and operating records related exclusively to the operation of
Property, or any portion thereof, (vii) all warranties and guaranties
(express or implied) issued in connection with, or arising out of (A) the
purchase and repair of all Personal Property (as that term is defined in the
Purchase Contract) or (B) the construction of any of the improvements
located on the Property, or any portion thereof, but excluding any warranty or
guaranty from the general contractor for the Property or any other

 

8

 

affiliate of Assignor, and (viii) the website
that at the time of Closing has the Internet domain name www.alexanfitzhugh.com (the “Website”);
provided, that (x) Assignee may, at Closing, choose to exclude the Website
from the Property, or (y) if Assignee does not choose to exclude the
Website from the Property at Closing, then no more than 30 days after Closing,
Assignee shall, at Assignee’s expense, change the Internet domain name of the
website to another name that does not include the Excluded IP and remove all
Excluded IP, all links to web
sites containing Excluded IP (e.g. www.tcresidential.com; www.alexanapts.com, etc.),
all references to Assignor and Assignor’s property manager and all addresses,
phone numbers, e-mail addresses and other identifying information relating to
Assignor or Assignor’s property manager from the Website.

 

2.                                       Assignor’s
interest in those service contracts described on Exhibit B, which
is attached hereto and incorporated herein by reference (collectively, “Service
Contracts”).

 

By accepting this Assignment and by its execution
hereof, Assignee hereby assumes and agrees to perform all of the terms,
covenants, and conditions of the Service Contracts on the part of Assignor
therein required to be performed, from and after the date hereof, but not prior
thereto.

 

Assignor agrees that it shall indemnify and hold
harmless Assignee from and against any and all claims, demands, losses,
liabilities, costs and expenses (including reasonable attorneys’ fees) incurred
by Assignee as a result of claims or causes of action being brought against
Assignee, as Assignor’s successor in interest to the Assigned Properties,
arising out of or relating to the Service Contracts and the obligations of
Assignor thereunder accruing prior to and until (but not including) the date
hereof. Assignee agrees that it shall indemnify and hold harmless Assignor from
and against any and all claims, demands, losses, liabilities, costs and
expenses (including reasonable attorneys’ fees) incurred by Assignor as a
result of claims or causes of action being brought against Assignor, as
Assignee’s predecessor in interest to the Assigned Properties, arising out of
or relating to the Service Contracts and the obligations of Assignee thereunder
accruing on or after the date hereof.

 

ASSIGNOR SPECIFICALLY DISCLAIMS ALL WARRANTIES OR
REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE (INCLUDING WARRANTIES OF MERCHANTABILITY) WITH RESPECT TO THE
ASSIGNED PROPERTIES, EXCEPT AS OTHERWISE PROVIDED IN THE PURCHASE CONTRACT.
CONVEYANCE OF THE ASSIGNED PROPERTIES IS SUBJECT TO OTHER LIMITATIONS (AND
EXCEPTIONS THEREFROM) CONTAINED IN THE PURCHASE CONTRACT, WHICH LIMITATIONS
SURVIVE THE CLOSING (AS THAT TERM IS DEFINED IN THE PURCHASE CONTRACT).

 

All of the covenants, terms and conditions set forth
herein shall be binding upon and shall inure to the benefit of the parties hereto
and their respective heirs, executors, legal representatives, successors and
assigns.

 

The parties may execute this Assignment in one or
more identical counterparts, all of which when taken together will constitute
one and the same instrument. If so executed, each of such counterparts is to be
deemed an original for all purposes, and all such counterparts shall,
collectively, constitute one agreement, but in making proof of this Assignment,
it shall not be necessary to produce or account for more than one such
counterpart.

 

REMAINDER
OF PAGE INTENTIONALLY BLANK.

SIGNATURE PAGE(S) FOLLOWS.

 

9

 

EXECUTED as of the date first set forth above.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  FITZHUGH APARTMENTS LIMITED PARTNERSHIP, 

  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NT 104 Fitzhugh Limited Partnership, a Delaware limited partnership,
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NT 101 Development 2006 GP LLC, a Delaware

  limited liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD [              ],
  LLC,

  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Mark T. Alfieri

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  

 

Exhibit A - Property Description 

Exhibit B - List of Service Contracts

 

10

 

EXHIBIT
A

to

Assignment and Assumption Agreement

 

PROPERTY
DESCRIPTION

 

TRACT 1:

Lot 1, Block 11/2000, of ALEXAN FITZHUGH ADDITION, an Addition to the
City of Dallas, Dallas County, Texas, according to the map/plat thereof
recorded under Clerk’s File No. 20080042332, Real Property Records, Dallas
County, Texas.

 

TRACT 2:

Lot 1, Block 14/2001, of ALEXAN FITZHUGH ADDITION, an Addition to the
City of Dallas, Dallas County, Texas, according to the map/plat thereof
recorded under Clerk’s File No. 20080042332, Real Property Records, Dallas
County, Texas.

 

11

 

EXHIBIT B

to

Assignment and Assumption Agreement

 

LIST OF
SERVICE CONTRACTS

[ATTACHED]

 

12

 

EXHIBIT E

to

Contract for Purchase and Sale

 

ASSIGNMENT
OF TENANT LEASES AND ASSUMPTION

 

This ASSIGNMENT OF TENANT LEASES AND ASSUMPTION (this
“Assignment”) is made and entered into as
of             ,
2010, by and between FITZHUGH APARTMENTS
LIMITED PARTNERSHIP,   a
Delaware limited partnership (“Assignor”), and
                                                       ,
a
                                                       (“Assignee”).

 

AGREEMENTS:

 

Assignor, for good and valuable consideration, the
receipt of which is hereby acknowledged, hereby GRANTS, TRANSFERS and ASSIGNS
to the Assignee the following (collectively, the “Property”): all of
Assignor’s right, title and interest in and to any and all tenant leases
described on the schedule of leases attached as Exhibit A, attached
hereto and made a part hereof (“Lease Schedule”), together with all
franchises, licenses, occupancy agreements, or other similar agreements
demising space in or otherwise permitting occupancy of the improvements now
existing on the land described on Exhibit B, attached hereto and
made a part hereof; and (ii) all refundable security deposits held by
Assignor under the Leases.

 

TO HAVE AND TO HOLD the Property, together with all
and singular the rights, titles, and interests thereto in anywise belonging, to
Assignee, its successors and assigns forever.

 

Assignee hereby assumes and agrees to pay and
perform all of the terms, covenants, conditions and obligations of the Assignor
under or with respect to the Leases arising or accruing on or after the date
hereof (including but not limited to obligations under the Leases with respect
to any refundable security deposits assigned hereby to Assignee), and agrees to
indemnify and hold Assignor harmless from and against any claims, costs or
liabilities in connection with the failure to perform such obligations under
the Leases arising or accruing on or after the effective date hereof. Assignor
agrees to indemnify and hold Assignee harmless from and against any claims,
costs or liabilities in connection with the failure to perform its obligations
under the Leases arising or accruing prior to and until (but not including) the
effective date hereof, including but not limited to obligations under the
Leases with respect to any deposits.

 

ASSIGNOR SPECIFICALLY DISCLAIMS ALL WARRANTIES OR
REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE (INCLUDING WARRANTIES OF MERCHANTABILITY) WITH RESPECT TO THE
PROPERTY, EXCEPT AS OTHERWISE PROVIDED HEREIN. CONVEYANCE OF THE PROPERTY IS
SUBJECT TO OTHER LIMITATIONS (AND EXCEPTIONS THEREFROM) CONTAINED IN THE
CONTRACT FOR PURCHASE AND SALE, DATED MAY      ,
2010, BETWEEN ASSIGNEE (BY WAY OF ASSIGNMENT FROM ITS PREDECESSOR-IN-INTEREST)
AND ASSIGNOR.

 

The parties may execute this Assignment in one or
more identical counterparts, all of which when taken together will constitute
one and the same instrument. If so executed, each of such counterparts is to be
deemed an original for all purposes, and all such counterparts shall,
collectively, constitute one agreement, but in making proof of this Assignment,
it shall not be necessary to produce or account for more than one such
counterpart.

 

EXECUTED as of the date first set forth above.

 

13

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  FITZHUGH APARTMENTS LIMITED PARTNERSHIP,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NT 104 Fitzhugh Limited Partnership, a Delaware limited

  
	
   

  	
   

  	
  partnership, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NT 101 Development 2006 GP LLC, a Delaware

  
	
   

  	
   

  	
   

  	
  limited liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  BEHRINGER HARVARD
  [                  ],
  LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Mark T. Alfieri

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Exhibit A — Lease Schedule

  	
   

  
	
  Exhibit B — Property Description

  	
   

  
						

 

14

 

EXHIBIT
A

to

Assignment of Tenant Leases and Assumption

 

LEASE
SCHEDULE

 

[ATTACHED]

 

15

 

EXHIBIT
B

to

Assignment of Tenant Leases and Assumption

 

PROPERTY
DESCRIPTION

 

TRACT 1:

Lot 1, Block 11/2000, of ALEXAN FITZHUGH ADDITION, an Addition to the
City of Dallas, Dallas County, Texas, according to the map/plat thereof
recorded under Clerk’s File No. 20080042332, Real Property Records, Dallas
County, Texas.

 

TRACT 2:

Lot 1, Block 14/2001, of ALEXAN FITZHUGH ADDITION, an Addition to the
City of Dallas, Dallas County, Texas, according to the map/plat thereof
recorded under Clerk’s File No. 20080042332, Real Property Records, Dallas
County, Texas.

 

16

 

EXHIBIT F

to

Contract for Purchase and Sale

 

FORM OF
TENANT NOTICE LETTER

 

NOTICE TO RESIDENTS

 

                                ,
20      

 

 

Dear Resident:

 

Notice is hereby given to
the residents of
                          
(the “Property”) that the current owner of the Property has sold the Property
to
                                                                       (“Purchaser”),
effective                         ,
20     . Purchaser has assumed all of the obligations
of landlord under your lease, including any obligations with respect to your
security deposit, if any, which has been transferred to Purchaser.

 

Sincerely,

 

	
   

  	
   

  

 

17

 

EXHIBIT G

to

Contract for Purchase and Sale

 

TITLE
AFFIDAVIT

 

CERTIFICATE AS TO TITLE MATTERS

 

GF/ORDER NO.:

 

PROPERTY: See attached
Exhibit “A”

 

STATE OF TEXAS

 

COUNTY OF

 

The undersigned, Fitzhugh Apartments Limited
Partnership (“Fitzhugh”), certifies to Chicago Title Insurance Company (the
“Company”) that, except as set forth on any title commitment, pro forma title
policy or title policy with respect to the Property issued by the Company, that
the following is true and correct:

 

1.                                       There are no
unpaid debts for plumbing fixtures, water heaters, floor furnaces, air conditioners,
radio or television antennae, carpeting, rugs, lawn sprinkling systems,
venetian blinds, window shades, draperies, electric appliances, fences, street
paving, or any personal property or fixtures that are located on the Property
described above, and no such items have been purchased on time payment
contracts, and there are no security interests on such property described in
this paragraph that are secured by financing statement, security agreement or
otherwise except as set forth on the attached Exhibit A.

 

2.                                       There are no
loans secured by a lien on such Property except a loan from Regions Bank.

 

3.                                       All labor and
material used in the construction of improvements on the Property in the last
twelve months have been paid for and there are now no unpaid labor or material
claims against the improvements or the property upon which same are situated
except as set forth on the attached Exhibit A.

 

4.                                       No parties,
other than the current owner and tenants under signed leases, are in possession
of the Property.

 

5.                                       To the actual
knowledge of the person signing this Certificate on behalf of Fitzhugh, other
than as shown on the real property survey
dated                                and
issued
by                              (the
“Survey”), since May     , 2010, there have been no:

 

a.                                       construction
projects on the Property such as new structures, additional buildings, rooms,
garages, swimming pools or other permanent improvements or fixtures;

 

b.                                      changes in the
location of boundary fences or boundary walls on the Property;

 

c.                                       construction
projects on immediately adjoining property(ies) which encroach on the Property;
or

 

18

 

d.             conveyances or replattings of the
Property by Fitzhugh, or the grant or dedication of easements on, over or
across the Property by Fitzhugh;

 

except, with respect to any of items a. – d., the
matters set forth in Exhibit A.

 

6.                                       Fitzhugh
understands that the Company is relying on the truthfulness of the statements
made in this affidavit to issue an owner’s title insurance policy in connection
with Fitzhugh’s sale of the Property and to provide the area and boundary
coverage upon the evidence of the Survey. This Certificate is made only for the
benefit the Company and not for any other parties or persons. This Certificate
does not constitute a warranty or guarantee of the location of improvements.

 

7.                                       Fitzhugh
understands, and the Company by acceptance of this Certificate agrees, that
(i) Fitzhugh has no liability to the Company should the information in
this Certificate be incorrect other than information that the person signing
this certificate on behalf of Fitzhugh knows to be incorrect and does not
disclose to the Company; and (ii) the representations made in this
Certificate are made only by Fitzhugh and no partner, officer, employee or
agent of Fitzhugh, nor the person signing this Certificate on behalf of
Fitzhugh, has any liability with respect to such representations.

 

	
   

  	
  FITZHUGH APARTMENTS LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NT 104 Fitzhugh Limited Partnership, a Delaware limited

  
	
   

  	
   

  	
  partnership, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NT 101 Development 2006 GP LLC, a Delaware

  
	
   

  	
   

  	
   

  	
  limited liability company, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

STATE OF TEXAS
                      )

 

 

COUNTY
OF                                )

 

SWORN TO AND SUBSCRIBED
before me
this                                         ,
2010, by                                           ,
the Vice President of NT 101 Development 2006 GP LLC, a Delaware limited
liability company, the general partner of NT 104 Fitzhugh Limited Partnership,
a Delaware limited partnership, the general partner of Fitzhugh Apartments
Limited Partnership, a Delaware limited partnership.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public, State of
  Texas

  

 

19

 

EXHIBIT A

to

Title Affidavit

 

EXCEPTIONS

 

20

 

EXHIBIT H

to

Contract for Purchase and Sale

 

SURVEY
CERTIFICATION

 

I hereby certify to Fitzhugh Apartments Limited Partnership,
Behringer Harvard Multifamily OP I LP, a Delaware limited partnership, and
Chicago Title Insurance Company, that this is, to the best of my knowledge and
belief, a true and correct survey map made on the ground per the field notes
indicated on this survey map of (Land lot, etc. and street address of the
Property) and correctly shows the true and correct location of the boundary
lines and area of the land indicated, the location and dimensions of all
buildings and the locations of other visible improvements on said land,
including but not limited to, structures, fences, walls and barriers, all
parking lots or areas (together with a count of all parking spaces in said
lots), out buildings, water courses or ditches, and walkways, situated on such land
and all easements, utilities, rights of way, setback lines, and similar or
other restrictions (visible or of record of which the surveyor is aware). The
buildings and improvements do not overhang or encroach upon any easement or
right of way of others, and there are no encroachments either way across the
property lines. The property surveyed contains 10.681 acres and is not located
within a flood plain or mudslide area as defined by the United States
Department of Housing and Urban Development under the Flood Disaster Protection
Act of 1973 as amended or as indicated by the Federal Emergency Management
Agency, FEMA Maps or the National Flood Insurance Administration (see FLOOD
STATEMENT). The survey correctly shows the location and dimensions of all adjoining
alleys, streets, roads and rights of way and distance of the subject property
from the nearest major street intersection. There are no visible
(a) improvements, (b) party walls (c) violations of set backs,
(d) ditches, (e) water courses, (f) easements, (g) roads,
streets or alleys, (h) rights of way, (i) encroachments,
(j) discrepancies, or (k) overlapping or conflicts on the subject
property except as shown on this survey map and the subject property does not
visibly serve any adjoining property for drainage, ingress, egress or other
similar purposes.

 

I hereby certify that this survey map and the survey
on which it is based were made in accordance with the most current Minimum
Detail Requirements for ALTA/ACSM Land Title Surveys, jointly established and
adopted by ALTA and ACSM, and meets the accuracy requirements for a
Class A Survey, as defined therein, and includes items 1 through 15 of
Table A of the Minimum Standard Detail Requirements for ALTA/ACSM Land Title
Surveys except for item 5 (“Contours”) and item 12 (“Governmental Agency
Requirements”) which have been excluded. I further certify that this survey map
was prepared by the undersigned and that the survey was performed on the ground
by the undersigned or by qualified persons under the direct supervision and
employment of the undersigned.

 

This survey may be relied upon by Behringer Harvard
Holdings, LLC, Behringer Harvard REIT I, Inc., Behringer Harvard Mid-Term
Value Enhancement Fund I LP, Behringer Harvard Short-Term Opportunity Fund I
LP, Behringer Harvard Opportunity REIT I, Inc., Behringer Harvard
Strategic Opportunity Fund I LP, Behringer Harvard Strategic Opportunity Fund
II LP, Behringer Harvard Multifamily REIT I, Inc., or Behringer Harvard
Opportunity REIT II, Inc. (or any other fund sponsored by or affiliated
with Behringer Harvard Holdings, LLC) and their respective affiliates
(collectively, “Behringer”) and a reference to this survey may be included in
an offering memorandum, registration statement, prospectus, sales brochure, annual
or quarterly reports, proxy statements, Forms 8—K or similar documents (in
either electronic or hard format) issued, filed or released in connection with
a sale, for firm securitization, or any loan on the property or other
transaction or reporting involving the property referenced in this survey.

 

 

	
   

  	
  [Signature of Surveyor]

  
	
   

  	
  Registration No.

  
	
   

  	
  [Name, address, telephone number and job number of Surveyor]. 

  

 

21

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