Interactive visualization applications benefit from simplification techniques that generate good quality coarse meshes from high resolution meshes that represent the domain. These meshes often contain interesting substructures, called embedded structures, and it is desirable to preserve the topology of the embedded structures during simplification, in addition to preserving the topology of the domain. This paper describes a proof that link conditions, proposed earlier, are sufficient to ensure that edge contractions preserve topology of the embedded structures and the domain. Excluding two specific configurations, the link conditions are also shown to be necessary for topology preservation. Repeated application of edge contraction on an extended complex produces a coarser representation of the domain and the embedded structures. An extension of the quadric error metric is used to schedule edge contractions, resulting in a good quality coarse mesh that closely approximates the input domain and the embedded structures.