Update from August 25th Meeting

Sobu Owners:

Thanks so much to all of you who attended the very important meeting last night and for returning the signed Amendments. We are so close to making this deal happen, but the next two weeks are crucial.

For those who were not able to attend, please see the very brief meeting re-cap below. If we receive enough requests from Sobu owners who were not present last night it may be possible that we hold another meeting this week. However; as you will read below – time is running out. The bottom line is this: WE HAVE A BUYER FOR THIS PROPERTY – AT THE PRICE THAT YOU ARE UNDER CONTRACT FOR. There are a few zoning/language technicalities that need to be amended which will require an immediate call to action on your part. Thanks in advance for your attention.

WE HAVE AN INTERESTED PARTY:
We have negotiated an assignment of the contracts with Cartel Properties (buyer) with the contingency that we have all 132 Sobu owners under contract by next Friday.

SOBU ASSEMBLAGE:
The Buyer wants to execute an Assignment Agreement with Sobu Assemblage, LLC (Assignment contract states that the developer agrees to assume all of the obligations of Sobu LLC exactly as they are, with the assignment executed the developer will simply step into the shoes of the original buyer so those contracts transfer to this buyer exactly as they are with all terms.

DEAL POINTS = SUCCESS!
We have negotiated tirelessly to maintain the original sale price despite the buyer’s argument for a price reduction = YOU WILL SELL FOR THE FULL AMOUNT ON YOUR CONTRACT
The time period for closing is the same as originally predicted (November 2009)

HISTORY = PACES GREEN ASSEMBLAGE:
The buyer who is interested in Sobu expressed that he was only interested in acquiring Sobu if he could also acquire Paces Green. For the past five+ weeks the buyer and Paces Green went back and forth and back and forth. Finally, the terms were agreed upon and the buyer is under contract with those 40 owners through an Assignment Agreement. Once they finally executed that agreement, the buyer contacted us in order to move forward on Sobu. This is important because the buyer is already into his 90 day Due Diligence Period on Paces Green. He wants Sobu to be on the same time line (zoning, building permits, closings, etc.).

TIME LINE:
Cartel Properties will be placing Earnest Money in the amount of $500 per property in Escrow in the next 5 days. Cartel Properties will have a 90 day due diligence period beginning in the next few days. If they do not terminate at the end of the 90 day period the Earnest Money is at risk subject to rezoning. The rezoning application must be filed within 60 days of the end of the 90 day due diligence period. Zoning will probably stretch into next summer. It is estimated that Cartel Properties will have expended several hundred thousand dollars in the due diligence / zoning process. Assuming the zoning process is successful, Cartel will begin preparing for building permit application and closing by November 3, 2009.

NEGOTIATED POINTS: WE MUST ACQUIRE SIGNED AMENDMENTS REFLECTING THESE MINOR ZONING/PERMITING POINTS BELOW BY NEXT FRIDAY
The Building Permit Contingency has been deleted (if we did not delete, this deal would be jeopardized because it is highly likely that buyer will not be granted a building permit by the city in time to close in November, 2009)
Rezoning application has been changed from “within 90 day inspection period” to “within 60 days after the end of the 90 day period”
Closing is to take place on November 3, 2009 (as before)

BUYER INFORMATION:
Please go to www.cartelproperties.com to learn more about the buyer.

AMENDMENT IS ATTACHED:
Please sign ASAP and fax to the attention of Josh Reeves at (404)604-3801. TIME IS OF THE ESSENCE. If you prefer to go to the Keller Williams office to sign in person please call Josh and schedule an appointment. However; please understand that we need to collect all 132 amendments by next Friday so if you could fax in your amendment that would be preferred. Thanks.

NOTES ABOUT THE AMENDMENT: Where it says “This Amendment is attached to the Purchase and Sale Agreement between _____________________________ (ENTER YOUR NAME HERE) and Sobu Assemblage, LLC dated ___________ (MANY PEOPLE MAY NOT BE AWARE OF THE DATE ON THEIR ORIGINAL CONTRACT AGREEMENT…SO LEAVE THIS BLANK AND WE WILL FILL IN THAT DATE) (the “Purchase and Sale Agreement”).” Also where it says, “
Executed this ____ day of ___________, 2008” (Just fill in the date that you sign this amendment).