EXHIBIT 10.3
Property Management Agreement Subcontract
This Property Management Agreement Subcontract (the "Agreement") is made as
of February 1, 1999 by and among Apple REIT VII Limited Partnership, a Virginia
limited partnership trading as Xxxxxxx Square Apartments ("Apple"), Apple
Residential Management Group, Inc., a Virginia corporation ("ARMG"), and
Cornerstone Realty Income Trust, Inc., a Virginia corporation ("Cornerstone")
and provides:
RECITALS
A. As of the date of this Agreement, Apple and ARMG are parties to a Property
Management Agreement more particularly described on Exhibit A hereto
pursuant to which ARMG has agreed to provide certain property management
services to Apple, as more particularly described in such agreement (the
"Property Management Agreement").
B. ARMG desires to delegate and assign to Cornerstone, and Cornerstone desires
to accept the delegation and assignment from ARMG of, all of ARMG's duties,
obligations, rights, powers and benefits under the Property Management
Agreement attributable to the period beginning on the date of this
Agreement, and Apple is willing to consent to such delegation and
assignment, as more particularly set forth below.
NOW THEREFORE, in consideration of the foregoing, of the mutual covenants
and agreements contained herein, and other good and valuable consideration, the
parties agree as follows:
1. ARMG does hereby delegate and assign to Cornerstone all of ARMG's duties,
obligations, rights, powers and benefits under the Property Management
Agreement (including any renewal or extension thereof) attributable to the
period beginning on the date of this Agreement. Cornerstone accepts such
delegation and assignment. The intent of such delegation and assignment is
to impose upon Cornerstone all duties and obligations of ARMG under the
terms of the Property Management Agreement attributable to the period
beginning on the date of this Agreement, and to confer upon Cornerstone all
of the correlative rights, powers and benefits (including without
limitation, the right to receive all fees and expense reimbursements)
conferred by or provided for in the Property Management Agreement, and this
Agreement shall be interpreted and construed consistently with such intent.
For so long as this Agreement remains in effect, the term "Manager," as
used in the Property Management Agreement as to which the delegation and
assignment described herein is effective shall be deemed to refer to
Cornerstone, unless the context clearly requires otherwise.
2. Apple consents to the delegation and assignment referred to in Section 1.
3. Cornerstone may, by written notice delivered to ARMG and Apple at 000 Xxxx
Xxxx Xxxxxx, Xxxxxxxx, Xxxxxxxx 00000, Attention: Xxxxx X. Xxxxxx,
terminate the delegation and assignment described herein as to the Property
Management Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement by
their duly authorized officers as of the date first written above.
APPLE REIT VII LIMITED PARTNERSHIP,
a Virginia limited partnership
By: Apple General, Inc., General Partner
By: /s/ X. X. Xxxxxxx
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Title: Vice President
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APPLE RESIDENTIAL MANAGEMENT
GROUP, INC., a Virginia corporation
By: /s/ X. X. Xxxxxxx
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Title: Secretary
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CORNERSTONE REALTY INCOME TRUST,
INC., a Virginia corporation
By: /s/ X. X. Xxxxxxx
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Title: Chief Financial Officer
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Exhibit A
Description of Property Management Agreement
between Apple and ARMG
Property Management Agreement dated as of February 1, 1999 pertaining to Xxxxxxx
Square Apartments.
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