Document:

ex10-14.htm

  

  

  

THIS AGREEMENT IS SUBJECT TO ARBITRATION PURSUANT TO S.C.CODE ANN. § 15-48-10 ET SEQ., CODE OF LAWS OF SOUTH CAROLINA, 1976 (AS AMENDED).

IF THE SOUTH CAROLINA UNIFORM ARBITRATION ACT IS DEEMED NOT TO APPLY, THIS AGREEMENT IS SUBJECT TO ARBITRATION PURSUANT TO THE FEDERAL ARBITRATION ACT, TITLE 9, SECTION 1 ET SEQ., UNITED STATES CODE (AS AMENDED).

EMPLOYMENT AGREEMENT

Employment Agreement (the “Agreement”) effective  January 24, 2011 by and between Synalloy Corporation, a corporation organized under the laws of the State of Delaware (the "Corporation"), and  Craig C. Bram a resident of  Richmond, Virginia (the "Employee").

W I T N E S S E T H:

That in consideration of the agreements hereinafter contained, the parties hereto agree as follows:

1. Employment. The Corporation agrees to employ the Employee and the Employee agrees to serve as Chief Executive Officer and President of the Corporation, and in such other capacities as the Board of Directors of the Corporation (the "Board") may designate from time to time, for a period of one year beginning January 24, 2011, the effective date of this Agreement.  At the end of the first year of this Agreement and on each anniversary thereafter, this Agreement shall be automatically extended for one year unless either party gives notice of intent to cancel this Agreement ninety days prior to an automatic extension date. During the term of his employment, the Employee shall devote his full time, attention, skill and efforts to the performance of his duties for the Corporation.  Notwithstanding the foregoing, nothing herein shall be construed to prevent Employee from serving on the Board of Directors of any other company without violating Paragraph 10 below or continuing employment with Horizon Capital Management, Inc.

2. Compensation.  The Corporation shall pay the Employee during the term of his employment hereunder a base salary of Two Hundred, Fifty Thousand and 00/100ths Dollars ($250,000.00) per year (the “Base Salary”) together with Bonus payable as provided in Paragraph 3 below, unless forfeited by the occurrence of any of the events of forfeiture specified in Paragraph 8 below.  The Base Salary shall be payable monthly or on a less frequent basis by mutual agreement.

3. Bonus.  In addition to the Base Salary provided for in Paragraph 2 above, for each fiscal year during which Employee serves as Chief Executive Officer of Corporation and provided Employee is in the employ of the Corporation on the last day of such fiscal year (except as provided in paragraphs 5 and 6 hereof), the Employee shall be entitled to a bonus (the “Bonus”)  as provided for in the Cash Bonus Plan (the "CBP") established before the beginning of each of the Corporation's fiscal years by the Compensation Committee of the Board. For the Fiscal Year Ending December 31, 2011, the Bonus shall equal two percent (2%) of net income before income taxes ("NIBIT") if NIBIT is between $7,530,000 and $9,210,000; one percent (1%) of NIBIT if NIBIT is below $7,530,000 and two and three-quarters percent (2.75%) of NIBIT if NIBIT is above $9,210,000. NIBIT will be as reflected on the Corporation's financial statements adjusted by an amount to eliminate the effect of inventory profits and losses applicable to the Brismet Pipe Division. The determination of the amount of inventory profit and losses shall be determined by the Corporation's Chief Financial Officer and approved by the Audit Committee of the Board of the Corporation. The Bonus shall be reduced five percent (5%) for each lost time accident occurring at the Division with the most lost time accidents during the year. The Bonus shall be further reduced by an amount to reflect any failure to reach targeted inventory turn goals. For the Fiscal Year Ending December 31, 2011, the target for inventory turns shall be 4.5x for Manufacturers Chemicals, LLC and 3.0x for Brismet Pipe Manufacturing Division. If the inventory turns are below the target for either of the operating divisions, the bonus pool is reduced by ten percent (10%). This reduction, if any, will be determined by and recorded in the minutes of the Compensation Committee of the Board.  Bonus payments will be made within two and one-half months of the fiscal year-end.

 

 

  

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As used in this Agreement, the term NIBIT shall mean the consolidated net income before income taxes as generally reflected in the Corporation’s Consolidated Statement of  Operations. It is intended that NIBIT shall be before income taxes of the Corporation, before the Bonus payable under this Agreement and before income and expenses not resulting from normal operations, including but not limited to, gains and losses from the sale or other disposition of capital assets and environmental expenses related to preexisting conditions not resulting from recent operations.  The Corporation’s Compensation Committee shall have sole discretion to determine which other items of income and expense are included in and/or excluded from NIBIT and its determination shall be final, binding and conclusive upon the parties hereto.  The Corporation may at any time or times change or discontinue any or all of its present or future operations, or may close, sell or move any one or more of its plants, facilities or divisions, or may undertake any new or other operations, or may take any and all other steps which the Board, in its exclusive judgment, shall deem advisable or desirable for the Corporation, and if any such action taken by the Corporation or its Board adversely affects NIBIT as hereinabove defined, the Employee shall have no claim or recourse by reason of any such action.

4. Stock Options.  In order to induce Employee to accept this position with the Corporation, Employee shall be granted a 100,000 share stock option on January 24, 2011 under a Stock Option Plan approved by the Board and subject to approval by the Corporation's shareholders. The exercise price of the option shall be as provided for in the Stock Option Plan. Simultaneously, Employee will be granted 13,420 shares of Restricted Stock under the Corporation's Stock Grant Plan.

5. Other Benefits.  Employee shall be eligible to participate in all employee benefits plans in accordance with the terms of such plans.

6.  Disability.  If because of illness, physical or mental disability, or other incapacity, certified by a physician acceptable to the Corporation, Employee shall fail to render the services provided for by this Agreement, or if Employee contracts an illness or injury, certified by a physician acceptable to the Corporation, which will permanently prevent the performance by him of the services provided for by this Agreement, then the Base Salary provided for in Paragraph 2 hereof shall continue until the next anniversary date of this Agreement but in no event less than three (3) months, with the Bonus for that fiscal year to be prorated to the date Employee's disability commenced.

7. Death.  If the Employee dies during the term of this Agreement, then the Base Salary provided for in Paragraph 2 hereof shall continue until the next anniversary date of this Agreement but in no event less than three (3) months, which Base Salary shall be paid to the estate of Employee, with the Bonus for that fiscal year to be prorated to the date of Employee's death  In the event of Employee's death and the termination of this Agreement on the terms of this paragraph, all other obligations of the Corporation under this Agreement shall cease and terminate.

8. Termination for Cause.  Nothing in this Agreement shall be construed to prevent the Corporation from terminating Employee's employment hereunder at any time for cause.  Fraud, dishonesty, gross negligence, willful misconduct, misappropriation, embezzlement, material violation of any code of conduct adopted by the Board, excessive absences from work , entry of any order by the Securities and Exchange Commission pursuant to Section 21C of the Securities Exchange Act of 1934 or Section 8A of the Securities Act of 1933 prohibiting Employee from serving as an officer or director of an issuer that has a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 or that is required to file reports pursuant to Section 15(d) of that Act, or the like, or any act or omission reasonably deemed by the Board to have been disloyal to the Corporation shall constitute cause for termination.  Termination for cause pursuant to this paragraph shall not constitute a breach of this Agreement by the Corporation.

9. Termination Without Cause; Resignation.  The Corporation shall have the right to terminate the Employee at any time without cause, provided that such termination would not relieve the Corporation of its financial obligations pursuant to this Agreement.  The Employee may resign at any time, provided that such resignation would constitute a release of the Corporation of all of its obligations pursuant to this Agreement other than the obligation to pay any accrued but unpaid portion of Employee’s salary.  Termination or resignation pursuant to this paragraph would be subject to the survival of certain provisions in accordance with Paragraph 10 below.

10. Covenant Not to Compete.  Employee agrees during the term of employment and for a period of one (1) year after his employment terminates for any reason, the Employee will not, directly or indirectly (such as through a separate entity) without the prior written approval of the Board, become an officer, employee, consultant, agent, partner, director, shareholder or owner of beneficial interests in or of any business enterprise which competes with the Corporation and its subsidiaries/affiliates for customers, orders, supply sources, or contracts (a) in the continental United States, and (b) in those businesses in which the Corporation and its affiliates were engaged on the date his employment terminated, unless, Employee's activities for such business enterprise are limited in such a way that Employee is not engaged, directly or indirectly, in competition with the Corporation or its affiliates for customers, orders, supply sources or contracts.  Passive ownership (not to exceed 5% of the total outstanding stock) of any publicly traded company will not in itself violate this covenant not to compete.  Employee acknowledges that the Corporation and its subsidiaries/affiliates are leaders in the chemical and metals businesses in which it manufactures, they have substantial customer relationships throughout the continental United States, and therefore the geographic scope of Employee’s non-competition obligation is fair and reasonable.

Employee further agrees that at no time during his employment or thereafter will he divulge, communicate or use to the detriment of the Corporation any of the Corporation’s confidential information, data, trade secrets, sale methods, customer lists, supply sources, or other proprietary information.

 

 

  

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11. Severability.  The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision hereof.

12.  Arbitration.  Any controversy or claim arising out of, or relating to this Agreement, or the breach thereof, shall be resolved exclusively by arbitration in the City of Spartanburg, State of South Carolina, in accordance with the rules then obtaining of the American Arbitration Association, and judgment upon the award rendered may be entered in any Court having jurisdiction thereof.

             13.  Notices.  Any notice required or permitted to be given under this Agreement shall be sufficient if in writing, and if sent by registered or certified mail or overnight mail by a recognized national carrier,  to his residence in the case of Employee, or to its Executive Offices in the case of the Corporation.

 

 

  

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14. Benefit.  This Agreement, in accordance with its terms and conditions, shall inure to the benefit of and be binding upon the Corporation, its successors and assigns, including but not limited to any corporation which may acquire all or substantially all of the Corporation's assets and business, or with or into which the Corporation may be consolidated or merged, and Employee, his heirs, executors, administrators, and legal representatives, provided that the obligations of the Employee hereunder may not be delegated.  Employee agrees, however, that any such sale or merger shall not be deemed a termination hereunder provided that the Employee's operational duties are not substantially reduced as a result thereof.

           15. Choice of Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of South Carolina.

           16. Entire Agreement.  This instrument contains the entire agreement of the parties hereto.  It may not be changed orally, but only by an agreement in writing.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year below written.

 

 

	
WITNESSES

	
SYNALLOY CORPORATION

	  ______________________	  	  
	
                                            

As to Synalloy Corporation

 

	
By

 

Its:

	
 /s/ James G. Lane, Jr.                       

James G. Lane, Jr.

Chairman of the Board of Directors

Dated: January 24, 2011

	  	  	  
	  	  	
EMPLOYEE

	  	  	  
	
______________________

As to Employee

	  	
 /s/ Craig C. Bram                                

Craig C. Bram

Dated: January 24, 2011

  

4AIMCO Lamplighter Purchase and Sale Contract

Exhibit 10.99

 

 

 

 

 

PURCHASE AND SALE
CONTRACT

 

 

 

BETWEEN

 

 

 

CONSOLIDATED CAPITAL

INSTITUTIONAL PROPERTIES/3,
LP,

a Delaware limited
partnership

 

AS SELLER

 

 

 

 

 

AND

 

 

 

 

 

THE EZRALOW
COMPANY. LLC,

a Delaware limited
liability company

 

 

 

AS PURCHASER

 

 

 

LAMPLIGHTER PARK

825 156th Avenue,
NE

Bellevue, Washington
98007

TABLE OF
CONTENTS

Page

 

 

 

	
 
	
ARTICLE
I
	
DEFINED
TERMS
	
1

	
 
	
ARTICLE
II
	
PURCHASE
AND SALE, PURCHASE PRICE & DEPOSIT
	
2

	
 
	
2.1
	
Purchase
and Sale
	
2

	
 
	
2.2
	
Purchase
Price and Deposit
	
2

	
 
	
2.3
	
Escrow
Provisions Regarding Deposit
	
3

	
 
	
ARTICLE
III
	
FEASIBILITY
PERIOD
	
5

	
 
	
3.1
	
Feasibility
Period
	
5

	
 
	
3.2
	
Expiration
of Feasibility Period
	
5

	
 
	
3.3
	
Conduct
of Investigation
	
6

	
 
	
3.4
	
Purchaser
Indemnification
	
6

	
 
	
3.5
	
Property
Materials
	
8

	
 
	
3.6
	
Property
Contracts
	
9

	
 
	
ARTICLE
IV
	
TITLE
	
11

	
 
	
4.1
	
Title
Documents
	
11

	
 
	
4.2
	
Survey
	
11

	
 
	
4.3
	
Objection
and Response Process
	
12

	
 
	
4.4
	
Permitted
Exceptions
	
13

	
 
	
4.5
	
Existing
Deed of Trust
	
13

	
 
	
4.6
	
Subsequently
Disclosed Exceptions
	
14

	
 
	
4.7
	
Purchaser
Financing
	
15

	
 
	
4.8
	
Housing
Assistance Program Vouchers
	
16

	
 
	
ARTICLE
V
	
CLOSING
	
16

	
 
	
5.1
	
Closing
Date
	
16

	
 
	
5.2
	
Seller
Closing Deliveries
	
17

	
 
	
5.3
	
Purchaser
Closing Deliveries
	
19

	
 
	
5.4
	
Closing
Prorations and Adjustments
	
20

	
 
	
5.5
	
Post
Closing Adjustments
	
26

	
 
	
ARTICLE
VI
	
REPRESENTATIONS
AND WARRANTIES OF SELLER AND
	
 

	
 
	
 
	
PURCHASER
	
27

	
 
	
6.1
	
Seller’s
Representations
	
27

	
 
	
6.2
	
AS-IS
	
29

	
 
	
6.3
	
Survival
of Seller’s Representations
	
31

	
 
	
6.4
	
Definition
of Seller’s Knowledge
	
32

	
 
	
6.5
	
Representations
and Warranties of Purchaser
	
33

	
 
	
ARTICLE
VII
	
OPERATION
OF THE PROPERTY
	
35

	
 
	
7.1
	
Leases
and Property Contracts
	
35

	
 
	
7.2
	
General
Operation of Property
	
36

	
 
	
7.3
	
Liens
	
36

	
 
	
7.4
	
Tax
Appeals
	
37

	
 
	
ARTICLE
VIII
	
CONDITIONS
PRECEDENT TO CLOSING
	
38

	
 
	
8.1
	
Purchaser’s
Conditions to Closing
	
38

	
 
	
8.2
	
Seller’s
Conditions to Closing
	
39

	
 
	
ARTICLE
IX
	
BROKERAGE
	
41

	
 
	
9.1
	
Indemnity
	
41

	
 
	
9.2
	
Broker
Commission
	
41

	
 
	
ARTICLE
X
	
DEFAULTS
AND REMEDIES
	
42

	
 
	
10.1
	
Purchaser
Default
	
42

	
 
	
10.2
	
Seller
Default
	
43

	
 
	
ARTICLE
XI
	
RISK
OF LOSS OR CASUALTY
	
45

	
 
	
11.1
	
Major
Damage
	
45

	
 
	
11.2
	
Minor
Damage
	
46

	
 
	
11.3
	
Closing
	
46

	
 
	
11.4
	
Repairs
	
47

	
 
	
ARTICLE
XII
	
EMINENT
DOMAIN
	
47

	
 
	
12.1
	
Eminent
Domain
	
47

	
 
	
ARTICLE
XIII
	
MISCELLANEOUS
	
48

	
 
	
13.1
	
Binding
Effect of Contract
	
48

	
 
	
13.2
	
Exhibits
and Schedules
	
48

	
 
	
13.3
	
Assignability
	
48

	
 
	
13.4
	
Captions
	
49

	
 
	
13.5
	
Number
and Gender of Words
	
49

	
 
	
13.6
	
Notices
	
49

	
 
	
13.7
	
Governing
Law and Venue
	
53

	
 
	
13.8
	
Entire
Agreement
	
53

	
 
	
13.9
	
Amendments
	
53

	
 
	
13.10
	
Severability
	
53

	
 
	
13.11
	
Multiple
Counterparts/Facsimile Signatures
	
54

	
 
	
13.12
	
Construction
	
54

	
 
	
13.13
	
Confidentiality
	
54

	
 
	
13.14
	
Time
of the Essence
	
55

	
 
	
13.15
	
Waiver
	
55

	
 
	
13.16
	
Attorneys’
Fees
	
55

	
 
	
13.17
	
Time
Zone/Time Periods
	
56

	
 
	
13.18
	
1031
Exchange
	
56

	
 
	
13.19
	
No
Personal Liability of Officers, Trustees or Directors
	
56

	
 
	
13.20
	
ADA
Disclosure
	
57

	
 
	
13.21
	
No
Recording
	
57

	
 
	
13.22
	
Relationship
of Parties
	
58

	
 
	
13.23
	
AIMCO
Marks
	
58

	
 
	
13.24
	
Non-Solicitation
of Employees
	
58

	
 
	
13.25
	
Survival
	
58

	
 
	
13.26
	
Multiple
Purchasers
	
59

	
 
	
13.27
	
WAIVER
OF JURY TRIAL
	
59

	
ARTICLE
XIV
	
LEAD-BASED
PAINT DISCLOSURE
	
60

	
 
	
14.1
	
Disclosure
	
60

	
 
	
14.2
	
Consent
Agreement
	
60

								

 

EXHIBITS AND SCHEDULES

 

EXHIBITS

 

Exhibit
A          Legal Description

Exhibit
B          Form of Special Warranty
Deed

Exhibit
C          Form of Bill of Sale

Exhibit
D          Form of General
Assignment and Assumption

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

Exhibit
F           Form of Notice to
Vendor regarding Termination of Contract

Exhibit
G          Form of Tenant
Notification

Exhibit
H          Form of Lead Paint
Disclosure

Exhibit
I            List of
Materials

 

 

SCHEDULES

 

Schedule
1       Defined Terms

 

PURCHASE AND SALE CONTRACT

THIS
PURCHASE AND SALE CONTRACT (this "Contract") is entered
into as of the 21st day of March, 2011 (the "Effective
Date"), by and between CONSOLIDATED CAPITAL INSTITUTIONAL
PROPERTIES/3, LP, a Delaware limited partnership, having an address at 4582
South Ulster Street Parkway, Suite 1100, Denver, Colorado 80237
("Seller"), and THE EZRALOW COMPANY, LLC, a
Delaware limited liability company, having a
principal address at 23622 Calabasas Rd, Suite 200, Calabasas, CA
91302.

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

RECITALS

A.       
Seller owns the real estate located in King County, Washington, as more
particularly described in Exhibit A attached hereto and made a part
hereof, and the improvements thereon, commonly known as Lamplighter Park
Apartments.

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

Article
I
DEFINED TERMS

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

Article
II
PURCHASE AND SALE, PURCHASE PRICE &
DEPOSIT

2.1             
Purchase and Sale.

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

2.2             
Purchase Price and Deposit.

 
The total purchase price ("Purchase Price") for the Property shall be an
amount equal to Twenty-Five Million One Hundred Thousand  Dollars
($25,100,000.00), payable by Purchaser, as follows:

2.2.1       
Within 2 Business Days following the Effective Date, Purchaser
shall deliver to Stewart Title Guaranty Company, c/o Wendy Howell, National
Commercial Closing Specialist, 1980 Post Oak Boulevard, Suite 610, Houston, TX
77056, 800-729-1906 ("Escrow Agent" or "Title
Insurer") an initial deposit (the "Initial Deposit") of
Two Hundred Fifty Thousand  Dollars ($250,000.00)  by wire transfer of
immediately available funds ("Good Funds").   

2.2.2       
On or before the day that the Feasibility Period expires,
Purchaser shall deliver to Escrow Agent an additional deposit (the
"Additional Deposit") of Two Hundred Fifty Thousand  Dollars
($250,000.00) by wire transfer of Good Funds.

2.2.3       
The balance of the Purchase Price for the Property shall be paid
to and received by Escrow Agent by wire transfer of Good Funds no later than 11:00 a.m. on the Closing Date. All times
specified in this Contract shall be Pacific Standard Time or, if applicable,
Pacific Daylight Time  (“PST”). 

2.3             
Escrow Provisions Regarding Deposit.

2.3.1       
Escrow Agent shall hold the Deposit and make delivery of the
Deposit to the party entitled thereto under the terms of this Contract. 
Escrow Agent shall invest the Deposit in an FDIC-insured, interest-bearing bank
account or FDIC-insured money market fund reasonably approved by Purchaser and
Seller, and all interest and income thereon shall become part of the Deposit and
shall be remitted to the party entitled to the Deposit pursuant to this
Contract.

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

2.3.3       
Except for the return of the Deposit to Purchaser as a result of
Purchaser exercising its termination right under Section 3.2 below (in which
event Escrow Agent shall promptly release the Deposit to Purchaser on demand),
if prior to the Closing Date either party makes a written demand upon Escrow
Agent for payment of the Deposit (which demand shall only be made in accordance
with this Contract), Escrow Agent shall give written notice to the other party
of such demand.  If Escrow Agent does not receive a written objection from
the other party to the proposed payment within 5 Business Days after the giving
of such notice, Escrow Agent is hereby authorized to make such payment.  If
Escrow Agent does receive such written objection within such 5-Business Day
period, Escrow Agent shall continue to hold such amount until otherwise directed
by written instructions from the parties to this Contract or a final judgment or
arbitrator's decision.  However, Escrow Agent shall have the right at any
time to deliver the Deposit and interest thereon, if any, with a court of
competent jurisdiction in the state in which the Property is located. 
Escrow Agent shall give written notice of such deposit to Seller and
Purchaser.  Upon such deposit, Escrow Agent shall be relieved and
discharged of all further obligations and responsibilities hereunder.  Any
return of the Deposit to Purchaser provided for in this Contract shall be
subject to Purchaser’s obligations set forth in Section
3.5.2.

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

2.3.5       
The parties shall deliver to Escrow Agent an executed copy of this
Contract within three (3) Business Days after the Effective Date.  Escrow
Agent shall execute the signature page for Escrow Agent
attached hereto which shall confirm Escrow Agent's agreement to comply with the
terms of Seller's closing instruction letter delivered at Closing and the
provisions of this Section 2.3.

2.3.6       
Escrow Agent, as the person responsible for closing the
transaction within the meaning of Section 6045(e)(2)(A) of the Internal Revenue
Code of 1986, as amended (the "Code"), shall file all necessary
information, reports, returns, and statements regarding the transaction required
by the Code including, but not limited to, the tax reports required pursuant to
Section 6045 of the Code.  Further, Escrow Agent agrees to indemnify and
hold Purchaser, Seller, and their respective attorneys and brokers harmless from
and against any Losses resulting from Escrow Agent's failure to file the reports
Escrow Agent is required to file pursuant to this section.

Article
III
FEASIBILITY
PERIOD

3.1             
Feasibility Period.

 
Subject to the terms of Sections 3.3 and 3.4
and the rights of Tenants under the Leases, from the Effective Date to and
including April 22, 2011 (the "Feasibility Period"), Purchaser,
and its agents, contractors, engineers, surveyors, attorneys, and employees
(collectively, "Consultants") shall, at no cost or expense to
Seller, have the right from time to time to enter onto the Property to conduct
and make any and all customary studies, tests, examinations, inquiries,
inspections and investigations  of or concerning the Property, review the
Materials and otherwise confirm any and all matters which Purchaser may
reasonably desire to confirm with respect to the Property and Purchaser’s
intended use thereof (collectively, the "Inspections").

3.2             
Expiration of Feasibility Period.

 
If any of the matters in Sections 3.1, 3.5 or 3.6 or any
other title or survey matters are unsatisfactory to Purchaser for any reason, or
for no reason whatsoever, in Purchaser's sole and absolute discretion, then
Purchaser shall have the right to terminate this Contract by giving written
notice to that effect to Seller and Escrow Agent no later than 5:00 p.m. on or
before the date of expiration of the Feasibility Period.  If Purchaser
provides such notice, this Contract shall terminate and be of no further force
and effect subject to and except for the Survival Provisions, and Escrow Agent
shall return the Initial Deposit to Purchaser.  If Purchaser fails to
provide Seller with written notice of termination prior to the expiration of the
Feasibility Period, Purchaser's right to terminate under this Section
3.2 shall be permanently waived and this Contract shall remain
in full force and effect, the Deposit then on deposit with the Escrow Agent
shall be non-refundable except as otherwise expressly set forth in this
Contract, including without limitation Section 4.6, and Purchaser's
obligation to purchase the Property shall be conditioned only as provided in
Section 8.1.  

3.3             
Conduct of Investigation.

 
Purchaser shall not permit any mechanics' or materialmen's liens or any other
liens to attach to the Property by reason of the performance of any work or the
purchase of any materials by Purchaser or any other party in connection with any
Inspections conducted by or for Purchaser.  Purchaser shall give reasonable
advance notice to Seller prior to any entry onto the Property and shall permit
Seller to have a representative present during all Inspections conducted at the
Property.  Purchaser shall take all reasonable actions and implement all
protections necessary to ensure that all actions taken in connection with the Inspections, and all equipment, materials and
substances generated, used or brought onto the Property pose no material threat
to the safety of persons, property or the environment.  

3.4             
Purchaser Indemnification.

3.4.1       
Purchaser shall indemnify, hold harmless and, if requested by
Seller (in Seller's sole discretion), defend (with counsel approved by Seller)
Seller, together with Seller's affiliates, parent and subsidiary entities,
successors, assigns, partners, managers, members, employees, officers,
directors, trustees, shareholders, counsel, representatives, agents, Property
Manager, Regional Property Manager, and AIMCO (collectively, including Seller,
"Seller's Indemnified Parties"), from and against any and all
damages, mechanics' liens, materialmen's liens, liabilities, penalties,
interest, losses, demands, actions, causes of action, claims, costs and expenses
(including reasonable attorneys' fees, including the cost of in-house counsel
and appeals) (collectively, "Losses") arising from or related to
Purchaser's or its Consultants' entry onto the Property, and any Inspections or
other acts by Purchaser or Purchaser’s Consultants with respect to the Property
during the Feasibility Period or otherwise.  Purchaser’s indemnity and
release shall not apply to the extent any Losses are the result of the gross
negligence or intentional misconduct of any of the Indemnified Parties.

3.4.2       
Notwithstanding anything in this Contract to the contrary,
Purchaser shall not be permitted to perform any invasive tests on the Property
without Seller's prior written consent, which consent shall not be unreasonably
withheld, conditioned or delayed.  If Purchaser desires to perform any
invasive tests.  Purchaser shall give prior written notice thereof to
Seller, which notice shall be accompanied by a detailed description and plan of
the invasive tests Purchaser desires to perform.  Further, Seller shall
have the right, without limitation, to disapprove any and all entries, surveys,
tests (including, without limitation, a Phase II environmental study of the
Property), investigations and other matters that in Seller's reasonable judgment
could result in any injury to the Property or breach of any contract, or expose
Seller to any Losses or violation of applicable law, or otherwise adversely
affect the Property or Seller's interest therein.  Purchaser shall, at
Purchaser's sole cost and expense, and in accordance with all applicable
environmental laws, dispose of all hazardous materials which have been
specifically removed from or at the Property by Purchaser or its agents,
representatives, employees or designees in connection with Purchaser's
environmental studies.  Purchaser shall use reasonable efforts to minimize
disruption to Tenants in connection with Purchaser's or its Consultants'
activities pursuant to this Section.  No consent by Seller to any such
activity shall be deemed to constitute a waiver by Seller or assumption of
liability or risk by Seller.  Purchaser hereby agrees to restore, at
Purchaser's sole cost and expense, the Property to the same condition existing
immediately prior to Purchaser's exercise of its rights pursuant to this
Article III.  Purchaser shall maintain and cause its third
party consultants to maintain (a) casualty insurance and commercial general
liability insurance with coverages of not less than $1,000,000.00 for injury or
death to any one person and $3,000,000.00 for injury or death to more than one
person and $1,000,000.00 with respect to property damage, and (b) worker's
compensation insurance for all of their respective employees in accordance with
the law of the state in which the Property is located.  Purchaser shall
deliver proof of the insurance coverage required pursuant to this Section
3.4.2 to Seller (in the form of a certificate of insurance)
prior to Purchaser's or Purchaser's Consultants' initial entry onto the
Property.

3.5             
Property Materials.

3.5.1       
Within 5 Business Days after the Effective Date, and to the extent
the same have not already been provided by Seller to Purchaser, Seller
agrees to use reasonable efforts to deliver to Purchaser, or at Seller's option
make available at the Property, copies of such documents and information
concerning the Property that are in Seller's possession or reasonable control (including without limitation the materials specified on Exhibit
I attached hereto and incorporated  by this reference) other than
such documents and information that Seller deems to be confidential or
proprietary (collectively, the "Materials").

3.5.2       
Except as expressly set forth in Seller's Representations, Seller
makes no representations or warranties, express, written, oral, statutory, or
implied, and all such representations and warranties are hereby expressly
excluded and disclaimed.  All Materials are provided for informational
purposes only, and Purchaser shall not in any way be entitled to rely upon the
completeness or accuracy of the Materials, and will instead in all instances
rely exclusively on its own Inspections and Consultants with respect to all
matters which it deems relevant to its decision to acquire, own and operate the
Property.  All Materials and Third-Party Reports shall be returned to
Seller or destroyed by Purchaser if this Contract is terminated for any
reason.

3.5.3       
Not later than 3 Business Days after the Effective Date, and to
the extent the same has not already been provided by Seller to Purchaser, Seller
shall deliver to Purchaser (or otherwise make available to Purchaser as provided
under Section 3.5.1) the most recent rent roll for the
Property, which is the rent roll Seller uses in the ordinary course of operating
the Property (the "Rent Roll").  Seller makes no
representations or warranties regarding the Rent Roll other than the express
representation set forth in Section 6.1.5.

3.5.4       
Not later than 3 Business Days after the Effective Date, and to
the extent the same has not already been provided by Seller to Purchaser, Seller
shall deliver to Purchaser (or otherwise make available to Purchaser as provided
under Section 3.5.1) a list of all current Property
Contracts (the "Property Contracts List").  Seller makes no
representations or warranties regarding the Property Contracts List other than
the express representations set forth in Section
6.1.6.  

3.6             
Property Contracts.

 
On or before the expiration of the Feasibility Period, Purchaser may deliver
written notice to Seller (the "Property Contracts Notice") specifying any
Property Contracts which Purchaser desires to terminate at the Closing (the
"Terminated Contracts"); provided that (a) the effective date of such
termination on or after Closing shall be subject to the express terms of such
Terminated Contracts, (b) if any such Property Contract cannot by its terms be
terminated at Closing and Purchaser shall fail to terminate this Agreement prior
to the expiration of the Feasibility Period, it shall be assumed by Purchaser
and not be a Terminated Contract, and (c) to the extent that any such Terminated
Contract requires payment of a penalty, premium, or damages, including
liquidated damages, for cancellation, or to the extent any Property Contract
assumed by Purchaser cannot be terminated and there is a penalty, premium or
damages, including liquidated damages, Seller shall be solely responsible for
the payment of any such cancellation fees, penalties, or damages, including
liquidated damages.  If Purchaser fails to deliver the Property Contracts
Notice on or before the expiration of the Feasibility
Period, then there shall be no Terminated Contracts and Purchaser shall assume
all Property Contracts at the Closing.  If Purchaser delivers the Property
Contracts Notice to Seller on or before the expiration of the Feasibility
Period, then Seller shall execute and deliver, on or before Closing, a vendor
termination notice (in the form attached hereto as Exhibit F) for each
Terminated Contract informing the vendor(s) of the
termination of such Terminated Contract as of the Closing Date (subject to any
delay in the effectiveness of such termination pursuant to the express terms of
each applicable Terminated Contract) (the "Vendor
Terminations").  To the extent that any Property Contract to be
assigned to Purchaser requires vendor consent, then, prior to the Closing,
Purchaser and Seller shall attempt to obtain from each applicable vendor a
consent (each a "Required Assignment Consent") to such assignment, and if
such consent is not obtained, the Property Contract shall be deemed terminated
at Closing, and Seller shall be solely responsible for the payment of any such
cancellation fees, penalties, or damages, including liquidated damages.

Article
IV
TITLE

4.1             
Title Documents.

 
Purchaser acknowledges that, prior to the Effective Date, Purchaser has received
from Title Insurer, a commitment for owner's title insurance, file no. 11330163
with regard to the Property ("Title Commitment") to provide a standard
American Land Title Association owner's title insurance policy for the Land and
Improvements, using the current policy jacket customarily provided by the Title
Insurer, in an amount equal to the Purchase Price (the "Title Policy"),
together with copies of all instruments identified as exceptions therein
(together with the Title Commitment, referred to herein as the "Title
Documents").  Purchaser shall be solely responsible for payment of all
other costs relating to procurement of the Title Commitment, the Title Policy,
and any requested endorsements.  Seller shall be responsible only for
payment of the base premium for the Title Policy and the cost of any
endorsements which may be obtained by Seller at its sole option (and which would
not otherwise be addressed through Extended Coverage) in order to cure or insure
over a title matter that is the subject of an Objection raised under Section
4.3 or a New Exception under Section 4.6.

4.2             
Survey.

 
Purchaser acknowledges that, prior to the Effective Date, Purchaser has received
from Seller the existing survey of the Property dated June 29, 2001 and prepared
by Van Cleave and Associates (the "Existing Survey").  Seller shall
promptly following the Effective Date order and provide to Purchaser an updated
ALTA/ACSM survey of the Property  to be prepared by a surveyor previously
approved by the parties (such updated survey, together with the Existing Survey,
is referred to herein as the "Survey").

4.3             
Objection and Response Process.

 
On or before April 12, 2011 (the "Objection Deadline"), Purchaser
shall give written notice (the "Objection Notice") to the
attorneys for Seller of any matter set forth in the Title Documents and the
Survey to which Purchaser objects (the "Objections").  If
Purchaser fails to tender an Objection Notice on or before the Objection
Deadline, Purchaser shall be deemed to have approved and irrevocably waived any
objections to any matters covered by the Title Documents and the Survey. 
On or before April 18, 2011 (the "Response Deadline"), Seller may,
in Seller's sole discretion, give Purchaser notice (the "Response
Notice") of those Objections which Seller is willing to cure, if
any.  Seller shall be entitled to reasonable
adjournments of the Closing Date to cure the Objections, not to exceed 30 days
in the aggregate.  If Seller fails to deliver a Response Notice by the
Response Deadline, Seller shall be deemed to have elected not to cure or
otherwise resolve any matter set forth in the Objection Notice.  If
Purchaser is dissatisfied with the Response Notice or the lack of Response
Notice, Purchaser may, as its exclusive remedy, exercise its right to terminate
this Contract prior to the expiration of the Feasibility Period in accordance
with the provisions of Section 3.2.  If Purchaser fails
to timely exercise such right, Purchaser shall be deemed to accept the Title
Documents and Survey with resolution, if any, of the Objections set forth in the
Response Notice (or if no Response Notice is tendered, without any resolution of
the Objections) and without any reduction or abatement of the Purchase
Price.  In the event Purchaser has not received the Survey at least 7 days
prior to the Objection Deadline, any Objection based on the Survey shall be
treated as a New Exception under Section 4.6 if made by Purchaser not later than
5 Business Days after Purchaser’s receipt of the Survey. 

4.4             
Permitted Exceptions.

 
The Deed delivered pursuant to this Contract shall be subject to the following,
all of which shall be deemed "Permitted Exceptions":

4.4.1       
All matters shown in the Title Documents and the Survey (if the
Survey has been updated by Purchaser and meets ALTA/ACSM survey requirements;
otherwise all matters that would be disclosed on an ALTA/ACSM survey), other
than (a) those Objections, if any, which Seller has agreed to cure pursuant to
the Response Notice under Section 4.3, (b) mechanics' liens
and taxes due and payable with respect to the period preceding Closing, (c) the
standard exception regarding the rights of parties in possession, which shall be
modified to be limited to those parties in possession pursuant to the Leases,
and (d) the standard exception pertaining to taxes and assessments, which shall
be limited to taxes and assessments not yet due and payable as of the Closing
Date;

4.4.2       
All Leases;

4.4.3       
Applicable zoning and governmental regulations and
ordinances;

4.4.4       
Any defects in or objections to title to the Property, or title
exceptions or encumbrances, arising by, through or under Purchaser, and

4.4.5       
The Metro Temporary Construction License, subject to Purchaser’s
due diligence rights during the Feasibility Period under Section 3.1
above.

4.5             
Existing Deed of Trust.

 
It is understood and agreed that, whether or not Purchaser gives an Objection
Notice with respect thereto, any deeds of trust and/or mortgages (collectively,
the "Deed of Trust") shall not be deemed Permitted Exceptions,
whether Purchaser gives further written notice of such or not, and shall be paid
off, satisfied, discharged and/or cured from proceeds of the Purchase Price at
Closing.

4.6             
Subsequently Disclosed Exceptions.

 
With respect to the Survey, if at any time within 5 Business Days after
Purchaser’s receipt of the Survey, or, with respect to any update to the Title
Commitment or Survey after the expiration of the Feasibility Period, the Survey
or such update, as the case may be, discloses any additional item that
materially adversely affects title to the Property which was not disclosed on
any version of or update to the Title Commitment delivered
to Purchaser during the Feasibility Period (the "New Exception"),
Purchaser shall have a period of 5 Business Days from the date of its receipt of
such Survey or update (the "New Exception Review Period") to
review and notify Seller in writing of Purchaser's approval or disapproval of
the New Exception.  If Purchaser disapproves of the New Exception, Seller
may, in Seller's sole discretion, notify Purchaser as to whether it is willing
to cure the New Exception.  If Seller elects to cure the New Exception,
Seller shall be entitled to reasonable adjournments of the Closing Date to cure
the New Exception, not to exceed 30 days in the aggregate.  If Seller fails
to deliver a notice to Purchaser within 3 days after the expiration of the New
Exception Review Period, Seller shall be deemed to have elected not to cure the
New Exception.  If Purchaser is dissatisfied with Seller's response, or
lack thereof, Purchaser may, as its exclusive remedy elect either:  (i) to
terminate this Contract, in which event the Deposit shall be promptly returned
to Purchaser or (ii) to waive the New Exception and proceed with the
transactions contemplated by this Contract, in which event Purchaser shall be
deemed to have approved the New Exception.  If Purchaser fails to timely
elect either of the options provided in clause (i) or (ii) above within 5
Business Days after the expiration of the New Exception Review Period, Purchaser
shall be deemed to have elected to disapprove the New Exceptions and this
Contract shall be terminated, in which event the Deposit shall be promptly
returned to Purchaser.

4.7             
Purchaser Financing.

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

4.8             
Housing Assistance Program Vouchers.

 
Purchaser acknowledges that the HAP Tenant Based Voucher Contracts require the
satisfaction by Purchaser of certain requirements as set forth therein and
established by the local housing authorities (collectively, the “Housing
Authority”) to allow for the assumption of the HAP Tenant Based Voucher
Contracts.  The HAP Tenant Based Voucher Contracts shall be
subject to Purchaser’s due diligence rights pursuant to Section 3.1 above. 
Purchaser agrees that, at the Closing, either (a) Purchaser shall assume all
obligations under the HAP Tenant Based Voucher Contracts and accept title to the
Property subject to the same, or (b) the existing HAP Tenant Based Voucher
Contracts shall be terminated, and Purchaser shall enter into replacement HAP
Tenant Based Voucher Contracts which are acceptable to the Housing Authority
(collectively, the foregoing (a) and (b) referred to herein as the "HAP
Tenant Based Voucher Assumption").  Purchaser shall indemnify and
hold the Seller and the Seller’s Indemnified Parties harmless from and against
any and all claims, losses, damages, and expenses (including reasonable
attorneys’ fees) that may be incurred by Seller and/or any of the Seller’s
Indemnified Parties from and after the Closing Date, in connection with the HAP
Tenant Based Voucher Assumption.

Article
V
CLOSING

5.1             
Closing Date.

 
The Closing shall occur on May 17, 2011 (the "Closing Date")
through an escrow with Escrow Agent, whereby Seller, Purchaser and their
attorneys need not be physically present at the Closing and may deliver
documents by overnight air courier or other means.  Notwithstanding the
foregoing to the contrary, in the event Seller shall elect to file an
Information Statement (as defined in Section 8.2.4) Seller shall have the
option, by delivering written notice to Purchaser not
later than 3 Business Days prior to the then-scheduled Closing Date to extend
the Closing Date to June 16, 2011.

5.2             
Seller Closing Deliveries.

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

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

5.2.2       
A Bill of Sale in the form attached as Exhibit C, conveying
the Personal Property identified in Exhibit C-1, if and to the extent the
same may exist on the Closing Date.

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

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

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

5.2.6       
A title affidavit or an indemnity form reasonably acceptable to
Seller, which is sufficient; (i) to
enable Title Insurer to delete the standard pre-printed exceptions to the title
insurance policy (including parties in possession and mechanic’s liens, but
excluding any survey related pre-printed exceptions unless Purchaser shall have
provided the Title Insurer with a current survey meeting ALTA/ACSM standards) to
be issued pursuant to the Title Commitment, if Purchaser elects
to obtain an extended ALTA title insurance policy, and (ii) for Title Insurer to
provide gap coverage.

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

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

5.2.9       
An updated Rent Roll effective as of a date no more than 3
Business Days prior to the Closing Date; provided, however, that the content of
such updated Rent Roll shall in no event expand or modify the conditions to
Purchaser's obligation to close as specified under Section
8.1.

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

5.2.11    Any
applicable transfer tax forms or conveyance forms, including, without
limitation, a real estate excise tax affidavit (the “REET
Affidavit”).

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

5.3             
Purchaser Closing Deliveries.

 
Except for: (i) the closing statement which shall be delivered on or before
the Closing Date, and (ii) the balance of the Purchase Price which is to be
delivered at the time specified in Section 2.2.3, Purchaser
shall deliver to Escrow Agent, each of the following items no later than 1
Business Day prior to the Closing Date:

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

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

5.3.3       
A countersigned counterpart of the General Assignment.

5.3.4       
A countersigned counterpart of the Leases Assignment.

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

5.3.6       
Intentionally Omitted

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

5.3.8       
Any applicable transfer tax forms or conveyance forms, including,
without limitation, the REET Affidavit.

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

5.4             
Closing Prorations and Adjustments.

5.4.1       
General.  All normal and customarily proratable items,
including, without limitation, collected rents, operating expenses, personal
property taxes, shall be prorated as of the Closing Date, Seller being charged
or credited, as appropriate, for all of same attributable to the period up to
the Closing Date (and credited for any amounts paid by Seller attributable to
the period on or after the Closing Date, if assumed by Purchaser) and Purchaser
being responsible for, and credited or charged, as the case may be, for all of
the same attributable to the period on and after the Closing Date.  Seller
shall prepare a proration schedule (the "Proration Schedule")
of the adjustments described in this Section
5.4 prior to Closing and shall deliver such Proration Schedule
to Purchaser and Escrow Agent at least 2 Business Days prior to Closing for
confirmation by Purchaser as to accuracy and completeness and incorporation of
all relevant information into Escrow Agent’s settlement statement.  

5.4.2       
Operating Expenses.  All of the operating,
maintenance, taxes (other than real estate taxes), and other expenses incurred
in operating the Property that Seller customarily pays, and any other costs
incurred in the ordinary course of business for the management and operation of
the Property, shall be prorated on an accrual basis.  Seller shall pay all
such expenses that accrue prior to the Closing Date and Purchaser shall pay all
such expenses that accrue from and after the Closing Date.

5.4.3       
Utilities.  The final readings and final billings for
utilities will be made if possible as of the Closing Date, in which case Seller
shall pay all such bills as of the Closing Date and no proration shall be made
at the Closing with respect to utility bills.  Otherwise, a proration shall
be made based upon the parties' reasonable good faith estimate.  Seller
shall be entitled to the return of any deposit(s) posted by it with any utility
company, and Seller shall notify each utility company serving the Property to
terminate Seller's account, effective as of noon on the Closing Date. 
Seller shall have no responsibility or liability for Purchaser's failure to
arrange utility service for the Property as of the Closing Date.  Purchaser
shall indemnify, hold harmless and, if requested by Seller (in Seller's sole
discretion), defend (with counsel approved by Seller) Seller's Indemnified
Parties from and against any and all Losses arising from or related to
Purchaser's failure to arrange utility service as of the Closing Date.

5.4.4       
Real Estate Taxes.  Any real estate ad valorem or
similar taxes for the Property, or any installment of assessments payable in
installments which installment is payable in the calendar year of Closing, shall
be prorated to the date of Closing, based upon actual days involved.  The
proration of real property taxes or installments of assessments shall be based
upon the assessed valuation and tax rate figures (assuming payment at the
earliest time to allow for the maximum possible discount) for the year in which
the Closing occurs to the extent the same are available; provided, however, that
in the event that actual figures (whether for the assessed value of the Property
or for the tax rate) for the year of Closing are not available at the Closing
Date, the proration shall be made using figures from the preceding year
(assuming payment at the earliest time to allow for the maximum possible
discount).  The proration of real property taxes or installments of
assessments shall be final and not subject to re-adjustment after Closing. 

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

5.4.6       
Leases.

5.4.6.1           
All collected rent (whether fixed monthly rentals, additional
rentals, escalation rentals, retroactive rentals, operating cost pass-throughs
or other sums and charges payable by Tenants under the Leases), income and
expenses from any portion of the Property shall be prorated as of the Closing
Date.  Purchaser shall receive all collected rent and income attributable
to dates from and after the Closing Date.  Seller shall receive all
collected rent and income attributable to dates prior
to the Closing Date.  In addition, if Purchaser elects to terminate any
utility rebilling contract associated with the Property, then Seller shall
receive a credit at Closing equal to the average of the amount of the monthly
utility bill associated with the Property for the preceding 12 months,
multiplied by the number of months (including fractional months) elapsed from
January 1, 2011 through the Closing Date.  Notwithstanding the foregoing,
no prorations shall be made in relation to either (a) non-delinquent rents which
have not been collected as of the Closing Date, or (b) delinquent rents
existing, if any, as of the Closing Date (the foregoing (a) and (b) referred to
herein as the "Uncollected Rents").  In adjusting for
Uncollected Rents, no adjustments shall be made in Seller's favor for rents
which have accrued and are unpaid as of the Closing, but Purchaser shall pay
Seller such accrued Uncollected Rents as and when collected by Purchaser. 
For a period of 120 days following Closing, Purchaser agrees to include all
Uncollected Rents on its rent billings to Tenants.  Notwithstanding the
foregoing, Purchaser's obligation to collect Uncollected Rents shall be limited
to Uncollected Rents of not more than 90 days past due, and Purchaser's
collection of rents shall be applied, first, towards current rent due and owing
under the Leases, second, to Purchaser’s reasonable third-party costs of such
collection, and third, to Uncollected Rents.  After the Closing, Seller
shall continue to have the right, but not the obligation, in its own name, to
demand payment of and to collect Uncollected Rents owed to Seller by any Tenant,
which right shall include, without limitation, the right to continue or commence
legal actions or proceedings against any Tenant and the delivery of the Leases
Assignment shall not constitute a waiver by Seller of such right; provided
however, that the foregoing right of Seller shall be limited to actions seeking
monetary damages and, in no event, shall Seller seek to evict any Tenants in any
action to collect Uncollected Rents.  Purchaser agrees to cooperate with
Seller at no material cost or liability to Purchaser in connection with all
efforts by Seller to collect such Uncollected Rents and to take all reasonable
steps after the Closing Date, as may be necessary to carry out the intention of
the foregoing; provided, however, that Purchaser's obligation to cooperate with
Seller pursuant to this sentence shall not obligate Purchaser to terminate any
Tenant lease with an existing Tenant or evict any existing Tenant from the
Property.

5.4.6.2           
At Closing, Purchaser shall receive a credit against the Purchase
Price in an amount equal to the received and unapplied balance of all cash (or
cash equivalent) Tenant Deposits, including, but not limited to, security,
damage, pet or other refundable deposits paid by any of the Tenants to secure
their respective obligations under the Leases, together, in all cases, with any
interest payable to the Tenants thereunder as may be required by their
respective Tenant Lease or state law (the "Tenant Security Deposit
Balance").  Any cash (or cash equivalents) held by Seller which
constitutes the Tenant Security Deposit Balance shall be retained by Seller in
exchange for the foregoing credit against the Purchase Price and shall not be
transferred by Seller pursuant to this Contract (or any of the documents
delivered at Closing), but the obligation with respect to the Tenant Security
Deposit Balance nonetheless shall be assumed by Purchaser.  The Tenant
Security Deposit Balance shall not include any non-refundable deposits or fees
paid by Tenants to Seller, either pursuant to the Leases or otherwise. 
Purchaser hereby agrees that, from and after the Closing, Purchaser shall hold
all Tenant Deposits actually received from Seller at the Closing (by means of a
Closing credit) in a trust account in accordance with the Residential Landlord
Tenant Act of the State of Washington (RCW 59.18.270), which obligation will
survive the Closing.

5.4.7       
Lump Sum Payments.  Notwithstanding the provisions of Section 5.4, if
Seller shall receive during the term of this Contract, or shall have received at
any time within the twelve (12)-month period preceding the Effective Date, any
lump sum or installment payment from any vendor or service provider to the
Property with respect to a Property Contract that will be assigned to Purchaser
under Section 3.6, including but not limited to cable television, high-speed
internet, utility billing service, or other vendors or service providers, such
payments shall be amortized on a straight-line basis over the term covered by
such lump-sum payment, excluding any unexercised extension or renewal periods,
and the portion of such payment attributable to the period from and after
Closing, if any, shall be credited to Purchaser at the Closing. 

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

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

5.4.10    Closing
Costs.  Purchaser shall pay (i) any sales, use, gross receipts or
similar taxes, (ii) any premiums or fees required to be paid by Purchaser with
respect to the Title Policy pursuant to Section 4.1 (other than the base premium for the Title
Policy), (iii) one-half of the customary closing costs of the Escrow Agent, and
(iv) all fees to record the deed and Purchaser’s loan and security
documents.  Seller shall pay (a) all real estate excise tax which becomes
payable by reason of the transfer of the Property, (b) the base premium for the
Title Policy, (c) one-half of the customary closing costs of the Escrow Agent,
and (d) all fees to record mortgage releases.  Purchaser shall pay (or
reimburse Seller for)  all costs incurred by Seller for the Survey at
Closing.  Seller shall be responsible for all such Survey costs if Closing
fails to occur for any reason.

5.4.11   
Intentionally Omitted.  

5.4.12   
Possession.  Possession of the Property, subject to
the Leases, Property Contracts, other than Terminated Contracts, and Permitted
Exceptions, shall be delivered to Purchaser at the Closing upon release from
escrow of all items to be delivered by Purchaser pursuant to Section
5.3.  To the extent reasonably available to Seller, originals or copies
of the Leases and Property Contracts, lease files, warranties, guaranties,
operating manuals, keys to the property, and Seller's books and records (other
than proprietary information) (collectively, "Seller's Property-Related
Files and Records") regarding the Property shall be made available to
Purchaser at the Property after the Closing.  Purchaser agrees, for a
period of not less than one (1) year after the Closing (the "Records Hold
Period"), to (a) provide and allow Seller reasonable access to Seller's
Property-Related Files and Records for purposes of inspection and copying
thereof, and (b) reasonably maintain and preserve Seller's Property-Related
Files and Records.  If at any time after the Records Hold Period, Purchaser
desires to dispose of Seller's Property-Related Files and Records, Purchaser
must first provide Seller prior written notice (the "Records Disposal
Notice").  Seller shall have a period of 30 days after receipt of
the Records Disposal Notice to enter the Property (or
such other location where such records are then stored) and remove or copy those
of Seller's Property-Related Files and Records that Seller desires to retain,
using commercially reasonable efforts to minimize any disruption to Purchaser’s
operations. 

5.5             
Post Closing Adjustments.

 
Purchaser or Seller may request that Purchaser and Seller undertake to re-adjust
any item on the Proration Schedule (or any item omitted therefrom), with the
exception of real property taxes which shall be final and not subject to
readjustment, in accordance with the provisions of Section
5.4 of this Contract; provided, however, that neither party
shall have any obligation to re-adjust any items (a) after the expiration of 120
days after Closing, or (b) subject to such 120-day period, unless such items
exceed $2,500.00 in the aggregate.

Article
VI
REPRESENTATIONS AND WARRANTIES OF SELLER
AND PURCHASER

6.1             
Seller's Representations.

 
Except, in all cases, for any fact, information or condition disclosed in the
Title Documents, the Permitted Exceptions, the Property Contracts, or the
Materials, or which is otherwise disclosed in writing to Purchaser prior to
Closing, Seller represents and warrants to Purchaser the following
(collectively, the "Seller's Representations") as of the Effective
Date and as of the Closing Date; provided that Purchaser's remedies if any such
Seller's Representations are untrue as of the Closing Date are limited to those
set forth in Section 8.1.

6.1.1       
Seller is validly existing and in good standing under the laws of
the state of its formation set forth in the initial paragraph of this Contract;
and has or at the Closing shall have the entity power and authority to sell and
convey the Property and to execute the documents to be executed by Seller and
prior to the Closing will have taken as applicable, all corporate, partnership,
limited liability company or equivalent entity actions required for the
execution and delivery of this Contract, and the consummation of the
transactions contemplated by this Contract.  The compliance with or
fulfillment of the terms and conditions hereof will not conflict with, or result
in a breach of, the terms, conditions or provisions of, or constitute a default
under, any contract to which Seller is a party or by which Seller is otherwise
bound, which conflict, breach or default would have a material adverse affect on
Seller's ability to consummate the transaction contemplated by this Contract or
on the Property.  This Contract is a valid and binding agreement against
Seller in accordance with its terms;

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

6.1.3       
Except for (a) any actions by Seller to evict Tenants under the
Leases, or (b) any matter covered by Seller's current insurance policy(ies),
which shall all be disclosed to Purchaser, to Seller's knowledge, (i) there are
no material actions, proceedings, litigation or governmental investigations or
condemnation actions either pending or threatened in writing against the
Property, and (ii) Seller has not received any written notices from any
governmental or quasi-governmental authority alleging a violation of law,
including any environmental law, on the Property, which has not been
cured;

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

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

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

6.1.7       
To Seller’s knowledge, the copies of Leases provided or made
available to Purchaser pursuant to Sections 3.5.1 and 3.5.2 are true, correct
and complete in all material respects;

6.1.8       
Seller has not:  (i) commenced a case under Title 11 of the
United States Code, as now constituted or hereafter amended, or under any other
applicable federal or state bankruptcy law or other similar law; (ii) appointed
a trustee or receiver of any property interest; (iii) made an assignment for the
benefit of creditors; (iv) been subject to an attachment, execution or other
judicial seizure of a substantial property interest; (v) taken, failed to take
or submitted to any action indicating an inability to meet its financial
obligations as they accrue; or (vi) dissolved or liquidated; and

6.1.9       
Seller has not entered into any other contracts for the sale of
the Property, nor do there exist any rights of first refusal or options to
purchase the Property; and.

6.1.10    To Seller’s
knowledge, (i) there are no leasing commissions or other fees due any real
estate brokers, nor will any become due, in connection with any tenant leases,
and (ii) Seller has received no notices alleging any defaults or breaches by
Seller, as landlord, under any Lease, or by a contracting party against Seller
under any Service Contract, which, in either case, remain uncured.

6.2             
AS-IS.

 
Except as otherwise expressly set forth in Seller's Representations:

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

6.2.2       
The Purchase Price and the terms and conditions set forth herein
are the result of arm's-length bargaining between entities familiar with
transactions of this kind, and said price, terms and conditions reflect the fact
that Purchaser shall have the benefit of, but is not relying upon, any
information provided by Seller or Broker or statements, representations or
warranties, express or implied, made by or enforceable directly against Seller
or Broker, including, without limitation, any relating to the value of the
Property, the physical or environmental condition of the Property, any state,
federal, county or local law, ordinance, order or permit; or the suitability,
compliance or lack of compliance of the Property with any regulation, or any
other attribute or matter of or relating to the Property (other than any
covenants of title contained in the Deed conveying the Property and Seller's
Representations).  Purchaser agrees that Seller shall not be responsible or
liable to Purchaser for any defects, errors or omissions in the Materials, or on
account of any conditions affecting the Property.  

6.2.3       
Purchaser, its successors and assigns, and anyone claiming by,
through or under Purchaser, hereby fully releases Seller's Indemnified Parties
from, and irrevocably waives its right to maintain, any and all claims and
causes of action that it or they may now have or hereafter acquire against
Seller's Indemnified Parties with respect to any and all Losses arising from or
related to any defects, errors, omissions in the Materials or other conditions
affecting the Property.  

6.2.4       
Purchaser represents and warrants that, as of the date hereof and
as of the Closing Date, it has and shall have reviewed and conducted such
independent analyses, studies (including, without limitation, environmental
studies and analyses concerning the presence of lead, asbestos, water intrusion
and/or fungal growth and any resulting damage, PCBs and radon in and about the
Property), reports, investigations and inspections as it deems appropriate in
connection with the Property.  If Seller  provides or has provided any
documents, summaries, opinions or work product of consultants, surveyors,
architects, engineers, title companies, governmental authorities or any other
person or entity with respect to the Property, including, without limitation,
the offering prepared by Broker, Purchaser and Seller agree that Seller has done
so or shall do so only for the convenience of both parties, Purchaser shall not
rely thereon and the reliance by Purchaser upon any such documents, summaries,
opinions or work product shall not create or give rise to any liability of or
against Seller's Indemnified Parties.  Purchaser acknowledges and agrees
that no representation has been made and no responsibility is assumed by Seller
with respect to current and future applicable zoning or building code
requirements or the compliance of the Property with any other laws, rules,
ordinances or regulations, the financial earning capacity or expense history of
the Property, the continuation of contracts, continued occupancy levels of the
Property, or any part thereof, or the continued occupancy by tenants of any
Leases or, without limiting any of the foregoing, occupancy at Closing.

6.2.5       
Prior to Closing, Seller shall have the right, but not the
obligation, to enforce its rights against any and all Property occupants, guests
or tenants.  Purchaser agrees that the departure or removal, prior to
Closing, of any of such guests, occupants or tenants shall not be the basis for,
nor shall it give rise to, any claim on the part of Purchaser, nor shall it
affect the obligations of Purchaser under this Contract in any manner
whatsoever; and Purchaser shall close title and accept delivery of the Deed with
or without such tenants in possession and without any allowance or reduction in
the Purchase Price under this Contract.

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

6.3             
Survival of Seller's Representations.

 
Seller and Purchaser agree that Seller's Representations shall survive Closing
for a period of 9 months (the "Survival Period").  Seller
shall have no liability after the Survival Period with respect to Seller's
Representations contained herein except to the extent that Purchaser has
requested arbitration against Seller during the Survival Period for breach of
any of Seller's Representations.  Under no circumstances shall Seller be
liable to Purchaser for more than $750,000 in any individual instance or in the
aggregate for all breaches of Seller's Representations, nor shall Purchaser be
entitled to bring any claim for a breach of Seller's Representations unless the
claim for damages (either in the aggregate or as to any individual claim) by
Purchaser exceeds $5,000.  In the event that Seller breaches any
representation contained in Section 6.1 and Purchaser had
knowledge of such breach prior to the Closing Date, and
elected to close regardless, Purchaser shall be deemed to have waived any right
of recovery, and Seller shall not have any liability in connection
therewith.  In the event that Seller’s breach under Section 6.1 shall fail
to satisfy the condition set forth in Section 8.1 and Purchaser, prior to
the scheduled Closing Date, notifies Seller in writing that it will not close
due to such failure, and if Purchaser thereafter does not close, then Purchaser,
as its sole and exclusive remedy against Seller, shall be entitled to recover on
account of such failure and Purchaser’s refusal to close, its actual and
verifiable third party costs and expenses incurred in connection with its
performance of its obligations under this Contract for its negotiation of this
Contract, conduct of due diligence, loan commitment fees and closing
preparations, if applicable, not to exceed $100,000 in the aggregate. 

6.4             
Definition of Seller's Knowledge.

 
Any representations and warranties made "to the knowledge of Seller" shall not
be deemed to imply any duty of inquiry.  For purposes of this Contract, the
term Seller's "knowledge" shall mean and refer only to actual knowledge
of the Regional Property Manager and the Community Manager (whom Seller represents are the individuals primarily responsible
for the day-to-day management of the Property) and shall not be construed to
refer to the knowledge of any other partner, officer, director, agent, employee
or representative of Seller, or any affiliate of Seller, or to impose upon such
Regional Property Manager and Community Manager any duty to investigate the
matter to which such actual knowledge or the absence thereof pertains, or to
impose upon such Regional Property Manager and Community Manager any individual
personal liability.  As used herein, the term "Regional Property
Manager" shall refer to Douglas MacArthur who is the regional property
manager handling this Property and the term "Community Manager"
shall refer to Marita Stampfli who is the community manager handling this
Property.

6.5             
Representations and Warranties of Purchaser.

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

6.5.1       
Purchaser is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Delaware and
authorized to conduct business in the State of Washington.

6.5.2       
Purchaser, acting through any of its or their duly empowered and
authorized officers or members, has all necessary entity power and authority to
own and use its properties and to transact the business in which it is engaged,
and has full power and authority to enter into this Contract, to execute and
deliver the documents and instruments required of Purchaser herein, and to
perform its obligations hereunder; and no consent of any of Purchaser's
partners, directors, officers or members are required to so empower or authorize
Purchaser.  The compliance with or fulfillment of the terms and conditions
hereof will not conflict with, or result in a breach of, the terms, conditions
or provisions of, or constitute a default under, any contract to which Purchaser
is a party or by which Purchaser is otherwise bound, which conflict, breach or
default would have a material adverse affect on Purchaser's ability to
consummate the transaction contemplated by this Contract.  This Contract is
a valid, binding and enforceable agreement against Purchaser in accordance with
its terms.

6.5.3       
No pending or, to the knowledge of Purchaser, threatened
litigation exists which if determined adversely would restrain the consummation
of the transactions contemplated by this Contract or would declare illegal,
invalid or non-binding any of Purchaser's obligations or covenants to
Seller.

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

6.5.5       
The Broker and its affiliates do not, and will not at the Closing,
have any direct or indirect legal, beneficial, economic or voting interest in
Purchaser (or in an assignee of Purchaser, which pursuant to Section
13.3, acquires the Property at the Closing), nor has Purchaser
or any affiliate of Purchaser granted (as of the Effective Date or the Closing
Date) the Broker or any of its affiliates any right or option to acquire any
direct or indirect legal, beneficial, economic or voting interest in
Purchaser.

6.5.6       
Purchaser is not a Prohibited Person.

6.5.7       
To Purchaser's knowledge, none of its investors, affiliates or
brokers or other agents (if any), acting or benefiting in any capacity in
connection with this Contract is a Prohibited Person.

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

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

6.6      
Definition of Purchaser's Knowledge.

Any
representations and warranties made "to the knowledge of Purchaser" shall not be
deemed to imply any duty of inquiry.  For purposes of this Contract, the
term Purchaser's "knowledge" shall mean and refer only to actual knowledge of
the David Leff of Purchaser (whom Purchaser represents is the individual
primarily charged by Purchaser with knowledge of the matters represented herein)
and shall not be construed to refer to the knowledge of any other partner,
officer, director, agent, employee or representative of Purchaser, or any
affiliate of Purchaser, or to impose upon such knowledge party any duty to
investigate the matter to which such actual knowledge or the absence thereof
pertains, or to impose upon such knowledge party any individual personal
liability..

Article
VII
OPERATION OF
THE PROPERTY

7.1             
Leases and Property Contracts.

 
During the period of time from the Effective Date to the Closing Date, in the
ordinary course of business Seller may enter into new Property Contracts, new
Leases, renew existing Leases or modify, terminate or accept the surrender or
forfeiture of any of the Leases, modify any Property Contracts, or institute and
prosecute any available remedies for default under any
Lease or Property Contract without first obtaining the written consent of
Purchaser; provided, however, Seller agrees that, without the prior written
consent of Purchaser, which consent shall not be unreasonably withheld,
conditioned or delayed, any new or renewed Leases: (i) shall be on terms
consistent with Seller’s current leasing practices and (ii) shall not have a
term in excess of 14 months and any new Property Contract shall be terminable
upon not more than 30 days notice without penalty.

7.2             
General Operation of Property.

 
Except as specifically set forth in this Article VII, Seller shall
operate the Property after the Effective Date in the ordinary course of
business, and except as necessary in Seller's sole discretion to address (a) any
life or safety issue at the Property or (b) any other matter which in Seller's
reasonable discretion materially adversely affects the use, operation or value
of the Property, Seller will not make any material alterations to the Property
or remove any material Fixtures and Tangible Personal Property without the prior
written consent of Purchaser which consent shall not be unreasonably withheld,
denied or delayed.

7.3             
Liens.

 
Other than utility easements and temporary construction easements granted by
Seller in the ordinary course of business, Seller covenants that it will not
voluntarily create or cause any lien or encumbrance to attach to the Property
between the Effective Date and the Closing Date (other than Leases and Property
Contracts as provided in Section 7.1) unless Purchaser
approves such lien or encumbrance, which approval shall not be unreasonably
withheld, conditioned or delayed.  If Purchaser approves any such
subsequent lien or encumbrance, the same shall be deemed a Permitted Encumbrance
for all purposes hereunder.  Without limiting the generality of this
Section 7.3, Purchaser acknowledges that (i) Seller has agreed to grant King
County Metro Transit a temporary construction license for the purpose of
upgrading a bus shelter located on the Property (at the sole cost and expense of
King County Metro Transit) and (ii) such temporary construction license shall be
deemed a Permitted Exception for all purposes hereunder, subject to Purchaser’s
due diligence rights under Section 3.1 above. 

7.4             
Tax Appeals.

 
If any tax reduction proceedings, tax protest proceedings or tax assessment
appeals for the Property, relating to any Tax Year through and including the Tax
Year in which the Closing occurs, are pending at the time of Closing, Seller
reserves and shall have the right to continue to prosecute and/or settle the
same without the consent of Purchaser including, without limitation, instituting
any tax reduction proceeding, tax protest proceeding or tax assessment appeal
for the Property with respect to property values determined during the Tax Year
that the Closing occurs, but attributable to Tax Years after the Closing. 
Seller hereby reserves and shall have the exclusive right, at any time after the
Closing Date, to institute a tax reduction proceeding, tax protest proceeding or
tax assessment appeal for the Property with respect to real estate taxes
attributable to the Tax Years prior to and including the Tax Year in which the
Closing occurs and Seller shall have the right to prosecute and/or settle the
same without the consent of Purchaser.  Purchaser agrees that it shall not
independently institute any tax reduction proceedings, tax protest proceedings,
or tax assessment appeals for the Property with respect to the Tax Years prior
to and including the Tax Year in which the Closing occurs.  Purchaser shall
cooperate with Seller in connection with the prosecution and/or settlement of
any such tax reduction proceedings, tax protest proceedings or tax assessment
appeals, including executing such documents as Seller may reasonably request in
order for Seller to prosecute and/or settle any such
proceedings.  Any refunds or savings in the payment of taxes resulting from
any tax reduction proceedings, tax protest proceedings or tax assessment appeals
applicable to the period prior to the Closing Date shall belong to Seller and
any refunds or savings in the payment of taxes applicable to the period from and
after the Closing Date shall belong to Purchaser.  All attorneys’ fees and
other expenses incurred in obtaining such refunds or savings shall be
apportioned between Seller and Purchaser in proportion to the gross amount of
such refunds or savings payable to Seller and Purchaser, respectively.  For
purposes of this Section 7.4, “Tax Year” shall mean each
12-month period for which the applicable taxing authority assesses property
taxes or other similar taxes or assessments, which may or may not be a calendar
year.

Article
VIII
CONDITIONS PRECEDENT TO
CLOSING

8.1             
Purchaser's Conditions to Closing.

 
Purchaser's obligation to close under this Contract shall be subject to and
conditioned upon the fulfillment of the following conditions precedent:

8.1.1       
All of the documents required to be delivered by Seller to
Purchaser at the Closing pursuant to the terms and conditions hereof shall have
been delivered;

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

8.1.3       
Seller shall have complied with, fulfilled and performed in all
material respects each of the covenants, terms and conditions to be complied
with, fulfilled or performed by Seller hereunder; and

8.1.4       
Neither Seller nor Seller's general partner shall be a debtor in
any bankruptcy proceeding.

Notwithstanding
anything to the contrary, there are no other conditions to Purchaser's
obligation to Close except as expressly set forth in this Section
8.1.  If any condition set forth in this Section
8.1 is not met, Purchaser may (a) waive any of the foregoing
conditions and proceed to Closing on the Closing Date with no offset or
deduction from the Purchase Price, (b) terminate this Contract and receive
a return of the Deposit from the Escrow Agent, or (c) if such failure
constitutes a default by Seller of its covenants hereunder, exercise any of its
remedies pursuant to Section 10.2.

8.2             
Seller's Conditions to Closing.

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

8.2.1       
All of the documents and funds required to be delivered by
Purchaser to Seller at the Closing pursuant to the terms and conditions hereof
shall have been delivered;

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

8.2.3       
Purchaser shall have complied with, fulfilled and performed in all
material respects each of the covenants, terms and conditions to be complied
with, fulfilled or performed by Purchaser hereunder

8.2.4                   
The Seller has informed Purchaser that in connection with the sale
of the Property pursuant to this Contract, the Seller may file an information
statement with the United States Securities Exchange Commission (the
“SEC”) pursuant to Rule 14(c) of the Securities Exchange Act of
1934, as amended (the “Information Statement”) and of distribute
the Information Statement to such Seller's limited partners.  The Seller
shall have the option to file the Information Statement with the SEC at any time
prior to the expiration of the Feasibility Period and thereafter shall use
commercially reasonably efforts to diligently process the Information
Statement.  It shall be a condition to the Seller’s closing obligations
hereunder that (A) either (x) such Seller has not received any comments on the
Information Statement from SEC for a period of ten (10) Business Days after the
Information Statement has been filed with the SEC or (y) if such Seller has
received comments from the SEC within such ten (10) Business Day period, such
comments have been addressed to the satisfaction of the SEC and the SEC has
confirmed that it has no further comments to the Information Statement and (B)
thereafter the Information Statement has been delivered to each of the limited
partners of such Seller and a period of not less than twenty (20) calendar days
has expired;

8.2.5       
Neither Purchaser nor any member of Purchaser shall be a debtor in
any bankruptcy proceeding; and

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

If
any of the foregoing conditions to Seller's obligations to close with respect to
the conveyance of the Property under this Contract are not met, Seller may (a)
waive any of the foregoing conditions and proceed to Closing on the Closing
Date, (b) terminate this Contract, or (c) if such failure constitutes a
default by Purchaser, exercise any of its remedies pursuant to
Section 10.1.  If Seller terminates this Contract
due to a failure of the condition set forth in Section 8.2.4, then Seller
shall reimburse Purchaser for Purchaser’s actual and verifiable third party
costs and expenses incurred in connection with its performance of its
obligations under this Contract for its negotiation of this Contract, conduct of
due diligence, loan commitment fees and closing preparations, if applicable, not
to exceed $100,000 in the aggregate.

Article
IX
BROKERAGE

9.1             
Indemnity.

 
Seller represents and warrants to Purchaser that it has dealt only with Jon
Hallgrimson of CB Richard Ellis, Multi-Housing Properties Group, located at 1420
Fifth Avenue, Suite 1700, Seattle, Washington 98101 ("Broker") in
connection with this Contract.  Seller and Purchaser
each represents and warrants to the other that, other than Broker, it has not
dealt with or utilized the services of any other real estate broker, sales
person or finder in connection with this Contract, and each party agrees to
indemnify, hold harmless, and, if requested in the sole and absolute discretion
of the indemnitee, defend (with counsel approved by the indemnitee) the other
party from and against all Losses relating to brokerage commissions and finder's
fees arising from or attributable to the acts or omissions of the indemnifying
party.  

9.2             
Broker Commission.

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

Article
X
DEFAULTS AND REMEDIES

10.1         
Purchaser Default.

 
If Purchaser defaults in its obligation hereunder to deliver the Initial Deposit
this Agreement shall be null and void, and neither party shall have any further
obligation or liability to the other, except for Purchaser's indemnity and
confidentiality obligations hereunder.  If Purchaser defaults in its
obligation hereunder to (a) deliver the Additional Deposit (or any other deposit
or payment required of Purchaser hereunder), (b) deliver to Seller the
deliveries specified under Section 5.3 on the date required
thereunder, or (c) deliver the Purchase Price in accordance with Article II and
do all things required of Purchaser under this Agreement to close on the
purchase of the Property on the Closing Date, then, immediately and without the
right to receive notice or to cure pursuant to Section
2.3.3, Purchaser shall forfeit the Deposit on deposit with the
Escrow Agent, and the Escrow Agent shall deliver the Deposit to Seller, and
neither party shall be obligated to proceed with the purchase and sale of the
Property.  If Purchaser defaults on any of its representations, warranties
or other obligations under this Contract in any material adverse way, and such
default continues for more than 10 days after written notice from Seller, then
Purchaser shall forfeit the Deposit on deposit with the Escrow Agent, and the
Escrow Agent shall deliver the Deposit to Seller, and neither party shall be
obligated to proceed with the purchase and sale of the Property.  The
Deposit is liquidated damages and recourse to the Deposit is, except for
Purchaser's indemnity and confidentiality obligations hereunder, Seller's sole
and exclusive remedy for Purchaser's failure to perform its obligation to
purchase the Property or breach of a representation or warranty.  Seller
expressly waives the remedies of specific performance and additional damages for
such default by Purchaser.  AS AUTHORIZED BY RCW 64.04.005, IN THE EVENT
PURCHASER FAILS, WITHOUT LEGAL EXCUSE, TO COMPLETE PURCHASE OF THE PROPERTY, THE
EARNEST MONEY DEPOSIT MADE BY PURCHASER SHALL BE FORFEITED TO SELLER AS THE SOLE
AND EXCLUSIVE REMEDY AVAILABLE TO SELLER FOR SUCH FAILURE..  SELLER AND
PURCHASER ACKNOWLEDGE THAT SELLER'S DAMAGES WOULD BE DIFFICULT TO DETERMINE, AND
THAT THE DEPOSIT ON DEPOSIT WITH ESCROW AGENT IS A REASONABLE ESTIMATE OF
SELLER'S DAMAGES RESULTING FROM A DEFAULT BY PURCHASER IN ITS OBLIGATION TO
PURCHASE THE PROPERTY.  SELLER AND PURCHASER FURTHER AGREE THAT THIS
SECTION 10.1 IS INTENDED TO AND DOES LIQUIDATE THE AMOUNT OF
DAMAGES DUE SELLER, AND SHALL BE SELLER'S EXCLUSIVE REMEDY AGAINST PURCHASER, BOTH AT LAW AND IN EQUITY, ARISING FROM OR RELATED
TO A BREACH BY PURCHASER OF ITS OBLIGATION TO CONSUMMATE THE TRANSACTIONS
CONTEMPLATED BY THIS CONTRACT, OTHER THAN WITH RESPECT TO PURCHASER'S INDEMNITY
AND CONFIDENTIALITY OBLIGATIONS HEREUNDER. 

10.2         
Seller Default.

 
If Seller (i) defaults in its obligations hereunder to deliver to Escrow Agent
the deliveries specified under Section 5.2 on the date
required thereunder, or to close on the sale of the Property on the Closing
Date, or (ii) prior to the Closing defaults on its covenants or obligations
under this Contract in any material way, and such default continues for more
than 10 days after written notice from Purchaser, then, at Purchaser's election
and as Purchaser's exclusive remedy, Purchaser may either (a) terminate this
Contract, and all payments and things of value, including the Deposit, provided
by Purchaser hereunder shall be returned to Purchaser and Purchaser may recover,
as its sole recoverable damages (but without limiting its right to receive a
refund of the Deposit), its direct and actual out-of-pocket expenses and costs
(documented by paid invoices to third parties) in connection with this
transaction, which damages shall not exceed $100,000 in the aggregate, or
(b) subject to the conditions below, seek specific performance of Seller’s
obligation to close on the sale of the Property pursuant to this Contract (but
not damages), including injunctive and equitable relief and lis pendens to
prevent the sale of the Property to a third party.  Purchaser may seek
specific performance of Seller's obligation to close on the sale of the Property
pursuant to this Contract only if, as a condition precedent to initiating such
litigation for specific performance, Purchaser shall (x) not otherwise be in
default under this Contract in any material way; and (y) file suit therefor with
the court on or before the 90th day after the Closing Date.  If Purchaser
fails to file an action for specific performance within 90 days after the
Closing Date, then Purchaser shall be deemed to have elected to terminate the
Contract in accordance with subsection (a) above.  Purchaser agrees that it
shall promptly deliver to Seller an assignment of all of Purchaser's right,
title and interest in and to (together with possession of) all plans, studies,
surveys, reports, and other materials, exclusive of attorneys’ files and
documents, legally privileged documents and internal or proprietary documents of
Purchaser, paid for with the out-of-pocket expenses reimbursed by Seller
pursuant to the foregoing sentence.  SELLER AND PURCHASER FURTHER AGREE
THAT THIS SECTION
10.2 IS INTENDED TO AND DOES LIMIT THE AMOUNT OF DAMAGES
DUE PURCHASER AND THE REMEDIES AVAILABLE TO PURCHASER, AND SHALL BE PURCHASER'S
EXCLUSIVE REMEDY AGAINST SELLER, BOTH AT LAW AND IN EQUITY ARISING FROM OR
RELATED TO A BREACH BY SELLER OF ITS COVENANTS OR ITS OBLIGATION TO CONSUMMATE
THE TRANSACTIONS CONTEMPLATED BY THIS CONTRACT.  UNDER NO CIRCUMSTANCES MAY
PURCHASER SEEK OR BE ENTITLED TO RECOVER ANY SPECIAL, CONSEQUENTIAL, PUNITIVE,
SPECULATIVE OR INDIRECT DAMAGES, ALL OF WHICH PURCHASER SPECIFICALLY WAIVES,
FROM SELLER FOR ANY BREACH BY SELLER, OF ITS COVENANTS OR ITS OBLIGATIONS UNDER
THIS CONTRACT.  PURCHASER SPECIFICALLY WAIVES THE RIGHT TO FILE ANY LIS
PENDENS OR ANY LIEN AGAINST THE PROPERTY UNLESS AND UNTIL IT HAS IRREVOCABLY
ELECTED TO SEEK SPECIFIC PERFORMANCE OF THIS CONTRACT AND HAS FILED AND IS
DILIGENTLY PURSUING AN ACTION SEEKING SUCH REMEDY.

Article
XI
RISK OF LOSS OR CASUALTY

11.1         
Major Damage.

 
If that the Property is damaged or destroyed by fire or other casualty prior to
Risk of Loss Transfer, and the cost for demolition, site cleaning, restoration,
replacement, or other repairs (collectively, the "Repairs") is
more than $2,510,000.00  (a "Major Damage"), then Seller
shall have no obligation to make such Repairs, and shall notify Purchaser in
writing of such damage or destruction (the "Damage Notice"). 
If there is a Major Damage, then Purchaser may elect, by delivering written
notice to Seller on or before the earlier of (x) Closing and
(y) the date which is ten (10) days after Purchaser's
receipt of the Damage Notice (the Closing Date being adjourned
to permit such election, if necessary), to terminate
this Contract, in which event the Deposit shall be returned to Purchaser. 
In the event Purchaser fails to timely terminate this Contract pursuant to this
Section 11.1, this transaction shall be closed in accordance with
Section 11.3 below.

11.2         
Minor Damage.

 
If the Property is damaged or destroyed by fire or other casualty prior to Risk
of Loss Transfer, and the cost of Repairs is equal to or less than
$2,510,000.00, then this transaction shall be closed in accordance with
Section 11.3, notwithstanding such casualty.  In such
event, Seller may at its election endeavor to make such Repairs to the extent of
any recovery from insurance carried on the Property, if such Repairs can be
reasonably effected before the Closing.  Regardless of Seller's election to
commence such Repairs, or Seller's ability to complete such Repairs prior to
Closing, this transaction shall be closed in accordance with Section
11.3 below.

11.3         
Closing.

 
If Purchaser fails to terminate this Contract following a casualty as set forth
in Section 11.1, or in the event of a casualty as set forth
in Section 11.2, then this transaction shall be closed in
accordance with the terms of the Contract, for the full Purchase Price,
notwithstanding any such casualty, in which case Purchaser shall, at Closing,
execute and deliver an assignment and assumption (in a form reasonably required
by Seller) of Seller's rights and obligations with respect to the insurance
claim related to such casualty, and thereafter Purchaser shall receive all
insurance proceeds pertaining to such claim, including loss of rents coverage,
less any amounts which may already have been spent by Seller for Repairs (plus a
credit against the Purchase Price at Closing in the amount of any deductible
payable by Seller in connection therewith); provided, however, that if the
insurer refuses for any reason to approve the assignment of loss proceeds to
Purchaser, then Purchaser shall close and pay the full Purchase Price less a
credit to Purchaser in the amount necessary to complete such Repairs (less any
amounts which may already have been spent by Seller for Repairs),
including, if applicable, loss of rents for the estimated repair period
through issuance of all applicable certificates of occupancy.

11.4         
Repairs.

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

Article
XII
EMINENT DOMAIN

12.1         
Eminent Domain.

 
If, at the time of Closing, any material part of the Property is (or previously
has been) acquired, or is about to be acquired, by any governmental agency by
the powers of eminent domain or transfer in lieu thereof (or in the event that
at such time there is any notice of any such acquisition or intent to acquire by
any such governmental agency), Seller shall provide prompt written notice
thereof to Purchaser and Purchaser shall have the right, at Purchaser's option,
to terminate this Contract by giving written notice within 10 days after
Purchaser's receipt from Seller of notice of the occurrence of such event (and
the Closing shall be adjourned as necessary to permit same).  If Purchaser
so terminates this Contract, Purchaser shall recover the Deposit
hereunder.  If Purchaser fails to terminate this Contract within such
10-day period, this transaction shall be closed in accordance with the terms of
this Contract for the full Purchase Price and Purchaser shall receive the full
benefit of any condemnation award.  It is expressly agreed between the
parties hereto that this section shall in no way apply to customary dedications
for public purposes which may be necessary for the development of the
Property.

Article
XIII
MISCELLANEOUS

13.1         
Binding Effect of Contract.

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

13.2         
Exhibits and Schedules.

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

13.3         
Assignability.

 
Except to the extent required to comply with the provisions of Section 13.18
related to a 1031 Exchange and as otherwise provided
hereinbelow, this Contract is not assignable by
Purchaser without first obtaining the prior written approval of Seller. 
Notwithstanding the foregoing, Purchaser may assign this Contract, without first obtaining the prior written
approval of Seller, to one or more entities so long as (a)
Purchaser is an affiliate of the purchasing entity(ies), (b: (i) any member, principal, officer, director, partner or
affiliate of Purchaser, singly or in any combination or to any trust established
by any of the foregoing for tax or estate planning purposes, (ii) any
corporation, general or limited partnership, limited liability company, limited
liability partnership, trust, or other entity owned or controlled by Purchaser
or any one or more of the individuals or entities described in clause (i) above
(control being defined for these purposes as either (A) ownership or the ability
to vote or direct the vote of no less than a majority of the ownership interest
or voting shares of an entity or (B) designation as manager, managing member,
general partner or equivalent), (iii) any corporation, partnership, limited
liability company, limited liability partnership, or
other entity as to which Bryan Ezralow, Marc Ezralow, David Leff, Gary Freedman,
and/or any member, principal, officer, director, or partner of Purchaser, singly
or in any combination or to any trust established by any of the foregoing for
tax or estate planning purposes, or entity owned or controlled by any of the
foregoing, is the managing member, manager, general partner, controlling
shareholder or equivalent of such entity; (iv) Purchaser is
not released from its liability hereunder in the absence of
performance by it assignee, and (c) Purchaser provides
written notice to Seller of any proposed assignment no later than three (3) Business Days prior to the
Closing Date.  As used herein, an affiliate is a person or entity
controlled by, under common control with, or controlling another person or
entity.

13.4         
Captions.

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

13.5         
Number and Gender of Words.

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

13.6         
Notices.

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

To
Purchaser:

 

The
Ezralow Company, LLC

23622
Clabasas Rd., Suite 200

Calabasas,
CA 91302
Attention:  David Leff
Telephone: 
818-223-3535

Facsimile: 
818-223-3536

Email: 
dleff@ezralow.com 

with a copy to:

James
C. Hughes, a Professional Corporation

23622
Calabasas Rd., Suite 110

Calabasas,
California 91302

Attention: 
James C. Hughes, Esq.

Telephone: 
818-429-0188

Facsimile: 
818-225-9513

Email: 
jhughes@jimhugheslaw.com 

 

To
Seller:

c/o AIMCO
4582 South Ulster Street Parkway
Suite
1100
Denver, Colorado  80237
Attention:  Mark
Reoch
Telephone:  303-691-4337 

Facsimile: 
303-300-3261 

Email: 
mark.reoch@aimco.com

And:

c/o
AIMCO
4582 South Ulster Street Parkway
Suite 1100
Denver,
Colorado  80237
Attention:  John Bezzant
Telephone:  303-793-4774
Email: 
john.bezzant@aimco.com

with
copy to:

AIMCO
4582 South Ulster Street Parkway
Suite
1100
Denver, Colorado  80237
Attention:  John Spiegleman,
Esq.
Telephone: 303-691-4303
Facsimile:  720-200-6882
Email:
john.spiegleman@aimco.com

and a copy to:

Bryan Cave LLP
1290 Avenue of
the Americas
New York, New York 10104
Attention:  Sandor A. Green,
Esq.
Telephone: 212-541-2049
Facsimile:  212-541-1449

Email: 
sagreen@bryancave.com 

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

Stewart
Title Guaranty Company 

1980
Post Oak Boulevard, Suite 610 

Houston,
TX 77056 

Attention: 
Wendy Howell

Telephone:
800-729-1906

Facsimile: 
713-552-1703

Email: 
Whowell@stewart.com

 

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

13.7         
Governing Law and Venue.

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

13.8         
Entire Agreement.

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

13.9         
Amendments.

 
This Contract shall not be amended, altered, changed, modified, supplemented or
rescinded in any manner except by a written contract executed by all of the
parties; provided, however, that, (a) the signature of the Escrow Agent shall
not be required as to any amendment of this Contract other than an amendment of
Section 2.3, and (b) the signature of the Broker shall not
be required as to any amendment of this Contract.

13.10     
Severability.

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

13.11     
Multiple Counterparts/Facsimile Signatures.

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

13.12     
Construction.

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

13.13     
Confidentiality.

 
Seller and Purchaser shall not disclose the terms and
conditions contained in this Contract and shall keep the same confidential,
provided that each may disclose the terms and conditions of this Contract (a) as
required by law, (b) to consummate the terms of this Contract, or any financing
relating thereto, or (c) to its lenders, brokers, attorneys, accountants, consultants,
investors, property managers, insurers, and others required to consummate the
Closing (the “Disclosure Parties”).  Furthermore,
Seller may disclose the terms and conditions of this Contract as is necessary,
in Seller's sole discretion, in order for Seller to make any public disclosures
required under federal or state securities laws or regulations.  Any information obtained by Purchaser in the course of its
inspection of the Property, and any Materials provided by Seller to Purchaser
hereunder, shall be confidential and Purchaser shall be prohibited from making
such information public to any other person or entity other than the Disclosure Parties, without Seller's
prior written authorization, which may be granted or denied in Seller's sole
discretion.  In addition, each party shall use its reasonable efforts to
prevent its Disclosure Parties from
divulging any such confidential information to any unrelated third parties
except for the limited purpose of analyzing and investigating such information
for the purpose of consummating the transaction contemplated by this
Contract.  Unless and until the Closing occurs, or, as to Seller, unless
and until any earlier termination of this Contract, neither
Seller nor Purchaser shall market
the Property (or any portion thereof) to any prospective purchaser or lessee, except for Seller’s right to lease the Property in the ordinary
course of business as provided in this Contract,
without the prior written consent of the other, which consent may be withheld in such other
party’s sole discretion.

13.14     
Time of the Essence.

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

13.15     
Waiver.

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

13.16     
Attorneys' Fees.

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

13.17     
Time Zone/Time Periods.

 
Any reference in this Contract to a specific time shall refer to the time in the
time zone where the Property is located.  (For example, a reference to 3:00
p.m. refers to 3:00 p.m. PST, or, if applicable, PDT if the Property is located
in Seattle, Washington.)  Should the last day of a time period fall on a
weekend or legal holiday, the next Business Day thereafter shall be considered
the end of the time period.

13.18     
1031 Exchange.

 
Seller and Purchaser acknowledge and agree that the purchase and sale of the
Property may be part of a tax-free exchange for either Purchaser or Seller
pursuant to Section 1031 of the Code, the regulations promulgated thereunder,
revenue procedures, pronouncements and other guidance issued by the Internal
Revenue Service.  Each party hereby agrees to cooperate with each other and
take all reasonable steps on or before the Closing Date to facilitate such
exchange if requested by the other party, provided that (a) no party making such
accommodation shall be required to acquire any substitute property, (b) such
exchange shall not affect the representations, warranties, liabilities and
obligations of the parties to each other under this Contract, (c) no party
making such accommodation shall incur any material additional cost, expense or
liability in connection with such exchange (other than expenses of reviewing and
executing documents required in connection with such exchange), and (d) no dates
in this Contract will be extended as a result thereof, except as specifically
provided herein.  

13.19     
No Personal Liability of Officers, Trustees or
Directors.

 
Purchaser acknowledges that this Contract is entered into by Seller which is a
Delaware limited partnership, and Purchaser agrees that none of Seller's
Indemnified Parties shall have any personal liability under this Contract or any
document executed in connection with the transactions contemplated by this
Contract.  Seller acknowledges that this Contract is entered into by
Purchaser which is a Delaware limited liability company and Seller agrees that
none of Purchaser, or Purchaser’s partners, managers, members, investors,
employees, officers, directors, trustees, shareholders, counsel,
representatives, or agents shall have any personal liability under this Contract
or any document executed in connection with the transactions contemplated by
this Contract.

13.20     
ADA Disclosure.

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

13.21     
No Recording.

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

13.22     
Relationship of Parties.

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

13.23     
AIMCO Marks.

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

13.24     
Non-Solicitation of Employees.

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

13.25     
Survival.

 
Except for (a) all of the provisions of this Article XIII (other
than Section 13.18); (b) Sections 2.3,
3.3, 3.4, 3.5, 3.6, 4.8,
5.4, 5.5, 6.2, 6.3,
6.5, 7.4, 9.1, 11.4, and
14.2; (c) any other provisions in this Contract, that by their
express terms survive the termination of this Contract or the Closing; and (d)
any payment or indemnity obligation of Purchaser under this Contract (the
foregoing (a), (b), (c) and (d) referred to herein as the "Survival
Provisions"), none of the terms and provisions of this Contract shall
survive the termination of this Contract, and if the Contract is not so
terminated, all of the terms and provisions of this Contract (other than the
Survival Provisions, which shall survive the Closing) shall be merged into the
Closing documents and shall not survive Closing.

13.26     
Multiple Purchasers.

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

13.27     
WAIVER OF JURY TRIAL.

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

13.28   WAIVER OF DISCLOSURE
STATEMENT.  Purchaser hereby waives (a)
the receipt of the disclosure statement described in RCW Chapter 64.06, and (b)
the right to rescind this Agreement based on Purchaser's lack of receipt of such
disclosure statement.

Article
XIV
LEAD–BASED PAINT DISCLOSURE

14.1         
Disclosure.

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

14.2         
Consent Agreement.

 
Testing (the "Testing") has been performed at the Property with
respect to lead-based paint.  Law Engineering and Environmental Services,
Inc. performed the Testing and reported its findings in the Multifamily
Component Type Report dated May 14, 2001, a copy of which has been provided to
Purchaser (the "Report").  The Report certifies the Property
as lead-based paint free.  By execution hereof, Purchaser acknowledges
receipt of a copy of the Report and the Lead-Based Paint Disclosure Statement
attached hereto as Exhibit H, and acknowledges receipt of that certain
Consent Agreement (the "Consent Agreement") by and among the
United States Environmental Protection Agency (executed December 19, 2001), the
United States Department of Housing and Urban Development (executed January 2,
2002), and AIMCO (executed December 18, 2001).  Because the Property has
been certified as lead based paint free, Seller is not required under the
Consent Agreement to remediate or abate any lead-based paint condition at the
Property prior to the Closing.  Purchaser acknowledges and agrees that (1)
after Closing, Purchaser and the Property shall be subject to the Consent
Agreement and the provisions contained herein related thereto and (2) that
Purchaser shall not be deemed to be a third party beneficiary to the Consent
Agreement.  

 

[Remainder of Page Intentionally Left Blank]

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

 

Seller:

 

CONSOLIDATED
CAPITAL INSTITUTIONAL PROPERTIES/3, LP, a Delaware limited partnership

 

By: 
CONCAP EQUITIES, INC., Delaware corporation, its general partner

 

By: 
/s/John Spiegleman

Name: 
John Spiegleman

Title: 
Senior Vice President

 

 

Purchaser:

 

THE
ERZALOW COMPANY, LLC,

A
Delaware limited liability company

 

By: 
/s/Cristina Agra-Hughes

Name: 
Cristina Agra-Hughes

Title: 
Senior Vice President

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