Class R Cumulative Preferred Share Purchase Agreement (2002)Full Document 

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                       CLASS R CUMULATIVE PREFERRED SHARE

                               PURCHASE AGREEMENT

                           DATED AS OF APRIL 10, 2002

                                      AMONG

                         NUVEEN REAL ESTATE INCOME FUND,

                    SECURITY CAPITAL U.S. REAL ESTATE SHARES
      (A SERIES OF SECURITY CAPITAL REAL ESTATE MUTUAL FUNDS INCORPORATED),

                  APARTMENT INVESTMENT AND MANAGEMENT COMPANY,

               SECURITY CAPITAL RESEARCH & MANAGEMENT INCORPORATED

                                       AND

                             AIMCO PROPERTIES, L.P.






                                TABLE OF CONTENTS




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                                                                                                               ----
                                                                                                            
I.       PURCHASE AND SALE OF SHARES.............................................................................1

         1.1      Sale and Issuance of Class R Preferred Shares..................................................1

         1.2      Closing........................................................................................2

II.      REPRESENTATIONS AND WARRANTIES OF THE COMPANY...........................................................2

         2.1      Registration Under the Securities Act..........................................................2

         2.2      Exchange Act Compliance........................................................................2

         2.3      Organization, Good Standing and Qualification..................................................3

         2.4      Power, Authority and Enforceability............................................................4

         2.5      Capitalization and Ownership of the Operating Partnership......................................4

         2.6      Valid Issuance of Shares.......................................................................4

         2.7      Compliance with Other Instruments..............................................................4

         2.8      Governmental Consent...........................................................................5

         2.9      No Material Adverse Changes....................................................................6

         2.10     Independent Public Accountants.................................................................6

         2.11     Financial Statements...........................................................................6

         2.12     Legal Compliance...............................................................................7

         2.13     Environmental Compliance.......................................................................7

         2.14     Obligations; Title to Properties; Leasehold Interests..........................................8

         2.15     Employees; ERISA...............................................................................9

         2.16     Insurance......................................................................................9

         2.17     No Other Distribution.........................................................................10

         2.18     Permits.......................................................................................10

         2.19     Taxes.........................................................................................10

         2.20     Investment Company............................................................................11

         2.21     Real Estate Investment Trust..................................................................11

         2.22     Listing of the Class R Preferred Shares on the New York Stock Exchange........................11

         2.23     Internal Accounting Controls..................................................................11

III.     REPRESENTATIONS AND WARRANTIES OF THE INVESTORS........................................................12

         3.1      Power, Authority and Enforceability...........................................................12

         3.2      Compliance with Other Instruments.............................................................12




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         3.3      Ownership Limitations.........................................................................12

IV.      REPRESENTATIONS AND WARRANTIES OF THE ADVISOR..........................................................13

         4.1      Power and Authority...........................................................................13

V.       CONDITIONS OF THE INVESTORS' OBLIGATIONS AT CLOSING....................................................13

         5.1      Amendment to the Articles Supplementary.......................................................13

         5.2      Representations and Warranties................................................................13

         5.3      Performance...................................................................................13

         5.4      No Material Adverse Change....................................................................13

         5.5      Legal Opinions................................................................................13

         5.6      Prospectus Supplement.........................................................................14

         5.7      Amendment to Operating Partnership Agreement..................................................14

         5.8      Officer's Certificates........................................................................14

         5.9      NYSE Listing..................................................................................14

         5.10     No Stop Order.................................................................................14

         5.11     No Injunction.................................................................................14

VI.      CONDITIONS OF THE COMPANY'S OBLIGATIONS AT CLOSING.....................................................15

         6.1      Representations and Warranties................................................................15

         6.2      Performance...................................................................................15

         6.3      No Injunction.................................................................................15

VII.     COVENANTS..............................................................................................15

         7.1      Registration of Class R Preferred Shares......................................................15

         7.2      Listing of Class R Preferred Shares on the NYSE...............................................15

VIII.    MISCELLANEOUS..........................................................................................16

         8.1      Survival of Warranties and Covenants..........................................................16

         8.2      Successors and Assigns........................................................................16

         8.3      Governing Law.................................................................................16

         8.4      Counterparts..................................................................................16

         8.5      Titles and Subtitles..........................................................................16

         8.6      Notices.......................................................................................16

         8.7      Finder's Fees.................................................................................18

         8.8      Expenses......................................................................................18




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         8.9      Amendments and Waivers........................................................................18

         8.10     Severability..................................................................................18

         8.11     Entire Agreement..............................................................................18





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                                TABLE OF CONTENTS
                                   (continued)


                                 
                                               SCHEDULES

Schedule I                          Specified Subsidiaries

                                                EXHIBITS

Exhibit A                           Amendment to the Articles Supplementary

Exhibit B-1                         Form of Opinion of Skadden, Arps, Slate, Meagher & Flom LLP

Exhibit B-2                         Form of Tax Opinion of Skadden, Arps, Slate, Meagher & Flom  LLP

Exhibit C                           Form of Opinion of Piper Rudnick  LLP

Exhibit D                           Form of Opinion of Joel F. Bonder




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              CLASS R CUMULATIVE PREFERRED SHARE PURCHASE AGREEMENT

                  This CLASS R CUMULATIVE PREFERRED SHARE PURCHASE AGREEMENT
(this "Agreement") is made as of the 10th day of April, 2002 by and among
Apartment Investment and Management Company, a Maryland corporation (the
"Company"), AIMCO Properties, L.P., a Delaware limited partnership (the
"Operating Partnership"), Security Capital Research & Management Incorporated,
Nuveen Real Estate Income Fund, a Massachusetts business trust ("Nuveen"), and
Security Capital U.S. Real Estate Shares, a series of Security Capital Real
Estate Mutual Funds Incorporated, a Maryland corporation ("SC-RMF", and together
with Nuveen, the "Investors").

                                   WITNESSETH

                  WHEREAS, the Company wishes to issue and sell to the Investors
an aggregate of 1,000,000 shares of Class R Cumulative Preferred Stock, $0.01
par value per share, of the Company (the "Class R Preferred Shares"), the
reclassification of which shall be made pursuant to an amendment to the articles
supplementary, as amended, in the form of Exhibit A (the "Amendment to the
Articles Supplementary") in accordance with and subject to the terms and
conditions set forth herein;

                  WHEREAS, each Investor wishes to purchase the number of Class
R Preferred Shares set forth below on the terms and subject to the conditions
set forth in this Agreement; and

                  WHEREAS, Security Capital Research & Management Incorporated,
a Maryland corporation (the "Advisor"), is an investment advisor to each of the
Investors and is authorized to enter into this Agreement on behalf of each of
the Investors.

                  NOW, THEREFORE, in consideration of the foregoing and the
mutual covenants, agreements and warranties herein contained, the parties hereby
agree as follows:

I. PURCHASE AND SALE OF SHARES.

         1.1 SALE AND ISSUANCE OF CLASS R PREFERRED SHARES.

                  (a) The Company shall adopt and file with the State Department
of Assessments and Taxation of Maryland (the "SDAT") on or before the Closing
Date (as defined below) the Amendment to the Articles Supplementary.

                  (b) Subject to the terms and conditions of this Agreement, the
Company agrees to issue and sell to Nuveen and SC-RMF, and each of Nuveen and
SC-RMF, severally and not jointly, agrees to purchase from the Company at the
Closing (as defined below), in the individual amounts set forth below, 1,000,000
Class R Preferred Shares at a per-share price of $25.34 (the "Per-Share Price"),
resulting in an aggregate purchase price of $25,340,000 (the "Purchase Price"):

                      Nuveen: 500,000 Shares ($12,670,000)
                      SC-RMF: 500,000 Shares ($12,670,000)





         1.2 CLOSING.

                  The closing (the "Closing") of the purchase and sale of the
Class R Preferred Shares shall take place at the offices of Mayer, Brown, Rowe &
Maw, 190 South LaSalle Street, Chicago, Illinois 60603 at 9:00 a.m., Chicago
time on April 11, 2002, or at such other location, date and time as may be
agreed upon by the Company and the Advisor (such date and time being hereinafter
referred to as the "Closing Date"). At the Closing, the Company shall cause its
transfer agent to deliver the Class R Preferred Shares via the "DWAC" system to
the respective custodian for each of the Investors, and each Investor shall
cause its custodian to promptly thereafter wire transfer to an account
designated by the Company immediately available funds in the respective amount
of the applicable portion of the Purchase Price. In the event the Company does
not receive the applicable portion of the Purchase Price on the Closing Date
from an Investor, the Company may, in its sole discretion, deliver a notice to
such Investor (which notice shall be delivered no later than one business day
thereafter) declaring this Agreement null and void ab initio as to such Investor
only and, this Agreement shall immediately be null and void ab initio as to such
Investor only, and such Investor shall promptly cause the applicable Class R
Preferred Shares to be returned to the Company's transfer agent. The failure of
one Investor to pay its portion of the Purchase Price shall have no effect on
the Company's obligations to the other Investor or on the other Investor's
obligations to the Company.

II. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

                  Each of the Company and the Operating Partnership, jointly and
severally, represent and warrant, as of the date of this Agreement, that:

         2.1 REGISTRATION UNDER THE SECURITIES ACT.

                  The Company has prepared and filed with the Securities and
Exchange Commission (the "Commission") a "shelf" registration statement (the
"Registration Statement") on Form S-3 (File No. 333-71452). The Company and the
transactions contemplated by this Agreement meet the requirements for using Form
S-3 under the Securities Act of 1933, as amended (the "Securities Act"). The
Registration Statement has become effective; no stop order suspending the
effectiveness of the Registration Statement is in effect, and no proceedings for
such purpose are pending before or threatened by the Commission. The Company
will file with the Commission a prospectus supplement (the "Prospectus
Supplement") specifically relating to the Class R Preferred Shares pursuant to
Rule 424 of the Securities Act.

         2.2 EXCHANGE ACT COMPLIANCE.

                  Each document, if any, filed or to be filed pursuant to the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and
incorporated by reference in the final prospectus and final Prospectus
Supplement (collectively, the "Prospectus") complied or will comply when so
filed in all material respects with the Exchange Act and the rules and
regulations of the Commission under the Exchange Act, (b) each part of the
Registration Statement, when such part became effective, did not contain, and
each such part, as amended or supplemented, if applicable, will not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading,

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