Exhibit 10.28

 

LOAN AGREEMENT

 

Wachovia Bank, National Association

100 South Ashley Drive, Suite 950

Tampa, Florida 33602

(Hereinafter referred to as the “Bank”)

 

Asset Investors Operating Partnership, L.P.

29399 US Highway 19 North

Suite 320

Clearwater, Florida 33761

(Individually and collectively “Borrower”)

 

Community Savanna Club Joint Venture

29339 US Highway 19 North,

Suite 320

Clearwater, Florida 33761

(Individually and collectively “Borrower”)

 

AIOP Lost Dutchman Notes, L.L.C

29399 US Highway 19 North

Suite 320

Clearwater, Florida 33761

(Individually and collectively “Borrower”)

 

Community Brentwood Joint Venture

29399 US Highway 19 North

Suite 320

Clearwater, Florida 33761

(Individually and collectively “Borrower”)

 

This Loan Agreement (“Agreement”) is entered into this 31st day of July, 2003,
by and between Bank and Borrower.

 

This Agreement applies to the loan, (the “Loan”) evidenced by a line of credit
Promissory Note dated July 31, 2003 or other notes subject hereto, as modified
from time to time (whether one or more, the “Note”) and all Loan Documents. The
terms “Loan Documents” and “Obligations,” as used in this Agreement, are defined
in the Note.

 

Relying upon the covenants, agreements, representations and warranties contained
in this Agreement, Bank is willing to extend credit to Borrower upon the terms
and subject to the conditions set forth herein, and Bank and Borrower agree as
follows:

 

1.

AVAILABILITY. The amount of this Loan is a $16,000,000.00 revolving credit
facility in the form of a commercial mortgage loan, provided, however, that in
no event shall the

 

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maximum principal amount of the Loan exceed 75% of the aggregate loan to value
of the value of the Property (as hereinafter defined) as determined by the
Wachovia ordered appraisal. “Property” is the manufactured home communities,
including all improvements presently located or subsequently constructed
thereon, and adjacent developed and undeveloped land of Brentwood Estates Mobile
Home Park, Hudson, Florida, Lost Dutchman Mobile Home Park and Blue Star RV
Park, Apache Junction, Arizona, and Savanna Club Mobile Home Park, Port St.
Lucie, Florida.

 

1.1. Initial Funding: Initial revolving credit funding under this facility will
be limited to an amount which results in a 1.25 Debt Service Coverage (“DSC”)
using the following borrowing base formula:

 

1.1.1. Debt Service Coverage will be based on a 25-year amortization.

 

1.1.2. The interest rate used for this calculation will be the greater of 7% or
the 10-year United States Treasury security rate, plus 2.50%.

 

1.1.3. Net Operating Income used for the DSC calculation will be based on the
current lease income, less the previous calendar year-end operating expenses,
except for the contribution of Net Operating Income from recreational vehicle
(“RV”) units will be calculated using the previous calendar year end income and
operating expenses.

 

1.2. Earn-Out: Borrower will have the ability to earn-out up to 75% of the
“stabilized value” as determined by an appraisal of the property in future
years, subject to the same conditions of the Initial Funding Amount provided
that the Recreational Vehicle (“RV”) component of Net Operating Income does not
exceed thirty percent (30%) of the total (“Earn-Out”). In the event that Net
Operating Income provided by the RV component exceeds 30% of the total Net
Operating Income from the Property, the stabilized value will be reduced to a
total amount that reflects 30% of the stabilized value as sourced from the RV
component. The amount of the Earn-Out will be addressed during the reaffirmation
of the credit facility or as earlier agreed to by the Bank in its sole
discretion.

 

2. REPRESENTATIONS. Borrower represents that from the date of this Agreement and
until final payment in full of the Obligations:

 

2.1. Accurate Information. All information now and hereafter furnished to Bank
is and will be true, correct and complete. Any such information relating to
Borrower’s financial condition will accurately reflect Borrower’s financial
condition as of the date(s) thereof, (including all contingent liabilities of
every type), and Borrower further represents that its financial condition has
not changed materially or adversely since the date(s) of such documents.

 

2.2. Authorization; Non-Contravention. The execution, delivery and performance
by Borrower and any guarantor, as applicable, of this Agreement and other Loan
Documents to which it is a party are within its power, have been duly authorized
as may be required and, if necessary, by making appropriate filings with any
governmental agency or unit and are the legal, binding, valid and enforceable

 

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obligations of Borrower and any guarantors; and do not (i) contravene, or
constitute (with or without the giving of notice or lapse of time or both) a
violation of any provision of applicable law, a violation of the organizational
documents of Borrower or any guarantor, or a default under any agreement,
judgment, injunction, order, decree or other instrument binding upon or
affecting Borrower or any guarantor, (ii) result in the creation or imposition
of any lien (other than the lien(s) created by the Loan Documents) on any of
Borrower’s or any guarantor’s assets, or (iii) give cause for the acceleration
of any obligations of Borrower or any guarantor to any other creditor.

 

2.3. Asset Ownership. Borrower has good and marketable title to all of the
properties and assets reflected on the balance sheets and financial statements
supplied Bank by Borrower, and all such properties and assets are free and clear
of mortgages, security deeds, pledges, liens, charges, and all other
encumbrances, except as otherwise disclosed to Bank by Borrower in writing and
approved by Bank (“Permitted Liens”). To Borrower’s knowledge, no default has
occurred under any Permitted Liens and no claims or interests adverse to
Borrower’s present rights in its properties and assets have arisen. Discharge of
Liens and Taxes. Borrower has duly filed, paid and/or discharged all taxes or
other claims that may become a lien on any of its property or assets, except to
the extent that such items are being appropriately contested in good faith and
an adequate reserve for the payment thereof is being maintained.

 

2.4. Sufficiency of Capital. Borrower is not, and after consummation of this
Agreement and after giving effect to all indebtedness incurred and liens created
by Borrower in connection with the Note and any other Loan Documents, will not
be, insolvent within the meaning of 11 U.S.C. § 101(32).

 

2.5. Compliance with Laws. Borrower is in compliance in all respects with all
federal, state and local laws, rules and regulations applicable to its
properties, operations, business, and finances, including, without limitation,
any federal or state laws relating to liquor (including 18 U.S.C. § 3617, et
seq.) or narcotics (including 21 U.S.C. § 801, et seq.) and/or any commercial
crimes; all applicable federal, state and local laws and regulations intended to
protect the environment; and the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), if applicable.

 

2.6. Organization and Authority. Each corporation, partnership or limited
liability company Borrower and/or guarantor, as applicable, is duly created,
validly existing and in good standing under the laws of the state of its
organization, and has all powers, governmental licenses, authorizations,
consents and approvals required to operate its business as now conducted. Each
corporation, partnership or limited liability company Borrower and/or guarantor,
as applicable, is duly qualified, licensed and in good standing in each
jurisdiction where qualification or licensing is required by the nature of its
business or the character and location of its property, business or customers,
and in which the failure to so qualify or be licensed, as the case may be, in
the aggregate, could have a material adverse effect on the business, financial
position, results of operations, properties or prospects of Borrower or any such
guarantor.

 

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2.7. No Litigation. There are no pending or threatened suits, claims or demands
against Borrower or any guarantor that have not been disclosed to Bank by
Borrower in writing, and approved by Bank.

 

3. AFFIRMATIVE COVENANTS. Borrower agrees that from the date hereof and until
final payment in full of the Obligations, unless Bank shall otherwise consent in
writing, Borrower will:

 

3.1. Access to Books and Records. Allow Bank, or its agents, during normal
business hours, access to the books, records and such other documents of
Borrower as Bank shall reasonably require, and allow Bank, at Borrower’s
expense, to inspect, audit and examine the same and to make extracts therefrom
and to make copies thereof.

 

3.2. Business Continuity. Conduct its business in substantially the same manner
and locations as such business is now and has previously been conducted.

 

3.3. Certificate of Full Compliance From Accountant. Deliver to Bank, with the
financial statements required herein, a certification by Borrower’s independent
certified public accountant that Borrower is in full compliance with the Loan
Documents.

 

3.4. Compliance with Other Agreements. Comply with all terms and conditions
contained in this Agreement, and any other Loan Documents, and swap agreements,
if applicable, as defined in the 11 U.S.C. § 101.

 

3.5. Estoppel Certificate. Furnish, within 15 days after request by Bank, a
written statement duly acknowledged of the amount due under the Loan and whether
offsets or defenses exist against the Obligations.

 

3.6. Insurance. Maintain adequate insurance coverage with respect to its
properties and business against loss or damage of the kinds and in the amounts
customarily insured against by companies of established reputation engaged in
the same or similar businesses including, without limitation, commercial general
liability insurance, workers compensation insurance, and business interruption
insurance; all acquired in such amounts and from such companies as Bank may
reasonably require.

 

3.7. Maintain Properties. Maintain, preserve and keep its property in good
repair, working order and condition, making all needed replacements, additions
and improvements thereto, to the extent allowed by this Agreement.

 

3.8. Notice of Default and Other Notices.

 

3.9. Notice of Default. Furnish to Bank immediately upon becoming aware of the
existence of any condition or event which constitutes a Default (as defined in
the Loan Documents) or any event which, upon the giving of notice or lapse of
time or both, may become a Default, written notice specifying the nature and
period of existence thereof and the action which Borrower is taking or proposes
to take with respect thereto.

 

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3.10. Other Notices. Promptly notify Bank in writing of (i) any material adverse
change in its financial condition or its business; (ii) any default under any
material agreement, contract or other instrument to which it is a party or by
which any of its properties are bound, or any acceleration of the maturity of
any indebtedness owing by Borrower; (iii) any material adverse claim against or
affecting Borrower or any part of its properties; (iv) the commencement of, and
any material determination in, any litigation with any third party or any
proceeding before any governmental agency or unit affecting Borrower; and (v) at
least 30 days prior thereto, any change in Borrower’s name or address as shown
above, and/or any change in Borrower’s structure.

 

3.11. Other Financial Information. Deliver promptly such other information
regarding the operation, business affairs, and financial condition of Borrower
which Bank may reasonably request.

 

3.12. Payment of Debts. Pay and discharge when due, and before subject to
penalty or further charge, and otherwise satisfy before maturity or delinquency,
all obligations, debts, taxes, and liabilities of whatever nature or amount,
except those which Borrower in good faith disputes.

 

3.13. Reports and Proxies. Deliver to Bank, promptly, a copy of all financial
statements, reports, notices, and all regular or periodic reports required to be
filed by Borrower with any governmental agency or authority.

 

4. NEGATIVE COVENANTS. Borrower agrees that from the date of this Agreement and
until final payment in full of the Obligations, unless Bank shall otherwise
consent in writing, Borrower will not:

 

4.1. Default on Other Contracts or Obligations. Default on any material contract
with or obligation when due to a third party or default in the performance of
any obligation to a third party incurred for money borrowed.

 

4.2. Government Intervention. Permit the assertion or making of any seizure,
vesting or intervention by or under authority of any governmental entity, as a
result of which the management of Borrower or any guarantor is displaced of its
authority in the conduct of its respective business or such business is
curtailed or materially impaired.

 

4.3. Judgment Entered. Permit the entry of any monetary judgment or the
assessment against, the filing of any tax lien against, or the issuance of any
writ of garnishment or attachment against any property of or debts due.

 

4.4. Retire or Repurchase Capital Stock. Retire or otherwise acquire any of its
capital stock.

 

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5. ANNUAL FINANCIAL STATEMENTS. Borrower and Guarantor shall deliver to Bank,
within 90 days after the close of each fiscal year, audited financial statements
reflecting its operations during such fiscal year, including, without
limitation, a balance sheet, profit and loss statement and statement of cash
flows, with supporting schedules; all on a consolidated basis and in reasonable
detail.

 

6. PERIODIC FINANCIAL STATEMENTS. American Land Lease, Inc. and each of its
subsidiaries shall deliver to Bank unaudited management-prepared quarterly
financial statements including, without limitation, a balance sheet, profit and
loss statement and statement of cash flows, with supporting schedules, as soon
as available and in any event within 45 days after the close of each such period
all in reasonable detail and prepared in conformity with generally accepted
accounting principles, applied on a basis consistent with that of the preceding
year. Such statements shall be certified as to their correctness by a principal
financial officer of American Land Lease, Inc.

 

7. TAX RETURNS. Asset Investors Operating Partnership, LP and American Land
Lease, Inc. shall deliver to Bank, within 30 days of filing, complete copies of
federal and state tax returns, as applicable, each of which shall be signed and
certified by Borrower or Guarantor, as applicable to be true and complete copies
of such returns. In the event an extension is filed, Borrower or Guarantor, as
applicable shall deliver a copy of the extension within 30 days of filing.

 

8. PROPERTY REPORTS. Borrower shall deliver to Wachovia, within 90 days after
the close of each fiscal year and, if requested by Wachovia, within 45 days
after the end of each fiscal quarter unaudited management-prepared financial
statements relating to the operation of the Property, including without
limitation, a balance sheet, income and expense statement, with supporting
schedules; certified rent roll; and summary of leases; all in reasonable detail,
prepared in conformity with generally accepted accounting principles, applied on
a basis consistent with that of the preceding year.

 

9. CONDITIONS PRECEDENT. The obligations of Bank to make the loan and any
advances pursuant to this Agreement are subject to the following conditions
precedent:

 

9.1. Additional Documents. Receipt by Bank of such additional supporting
documents as Bank or its counsel may reasonably request.

 

9.2. Opinion of Counsel. On or prior to the date of any extension of credit
hereunder, Bank shall have received a written opinion of the counsel of Borrower
acceptable to Bank that includes confirmation of the following: (a) The accuracy
of the representations set forth in this Agreement in the Representations
Subparagraphs entitled “Authorization; Non-Contravention”; “Compliance with
Laws”, and “Organization and Authority”. (b) This Agreement and other Loan
Documents have been duly executed and delivered by Borrower and constitute the
legal, valid and binding obligations of Borrower, enforceable in accordance with
their terms. (c) No registration with, consent of, approval of, or other action
by, any federal, state or other governmental authority or regulatory body is
required by law in connection with the execution and delivery of this Agreement
and the other Loan Documents, or the extension of credit under this Agreement or
the other Loan Documents, or, if so required, such registration has been made,
and such consent or approval given or such other appropriate action taken. (d)
The loan is not usurious.

 

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9.3. Wachovia ordered appraisal, at Borrower’s expense, showing a current “as
is” fair market value and the “upon stabilization” value of the Property
satisfactory to Wachovia. Wachovia specifically acknowledges the former
appraiser of the Arizona properties as acceptable for this purpose, provided
however, the appraisal reports must be reviewed and found satisfactory to Bank
in its reasonable discretion.

 

9.4. Wachovia ordered Phase I report relating to the Property from a Wachovia
approved environmental consultant or suitable environmental insurance.

 

9.5. Wachovia ordered Facility Review, at Borrower’s expense, pursuant to which
an engineer shall (i) assess the structural condition of, and the heating,
plumbing, electrical, air conditioning and mechanical systems at, the Property,
and (ii) identify the measurements and gross and net square footage of each
building at the Property. Wachovia will accept the appraisal report from
Borrower’s engineer for this purpose, provided however the report must be
reviewed and found satisfactory to Bank in its reasonable discretion.

 

9.6. A commitment to issue a standard ALTA mortgagee title insurance policy in
form, content and from a title insurer satisfactory to Wachovia, insuring the
mortgage as a first lien on the Property for the full amount of the loan, with
such endorsements as Wachovia may require. Title shall be fee simple and
marketable, free and clear of all defects, liens and encumbrances, including
mechanics’ liens, and subject only to such exclusions from coverage and
exceptions to title as Wachovia shall approve. The commitment shall include
judgment and bankruptcy court searches, tax and assessment searches, and county
and state financing statement searches.

 

9.7. A recorded plat or current survey of the Property, certified to Wachovia
and the title insurer, showing the boundaries of the Property by courses and
distances, together with a corresponding metes and bounds description, the
actual or proposed location of all improvements (excluding manufactured homes),
encroachments and restrictions, the location and width of all easements, utility
lines, rights-of-way and building set-back lines, and notes referencing book and
page numbers for the instruments granting the same.

 

9.8. Original or duplicate policies, or evidence of insurance on an ACORD 27
form of certificate, of: “all-risk” builders risk insurance during construction
of any improvements, which must include fire, vandalism and malicious mischief ,
collapse and sinkhole coverage, (non-reporting Completed Value with Special
Cause of Loss form) in an amount not less than the total completed replacement
value of the improvements under construction; upon completion of any
construction and at all other times, “all-risk” fire and extended coverage
hazard insurance, which must include fire, vandalism and malicious mischief,
collapse and sinkhole coverage, (non-reporting Commercial Property Policy with
Special Cause of Loss form) in an amount not less than 100% of the agreed upon
full insurable replacement value of the Property, including coverage for loss of
rents or business interruption (for a

 

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period of not less than twelve (12) months); comprehensive general public
liability insurance in an amount satisfactory to Wachovia and, if the Property
is located in a special flood hazard area, flood insurance is required in the
amount equal to the lesser of the loan amount or maximum available under the
National Flood Insurance Program, but in no event should the amount of coverage
be less than the value of the improved structure; in each case in form and with
companies acceptable to Wachovia and naming Wachovia as first mortgagee, loss
payee or certificate holder, as applicable, and endorsed to provide that
occupancy by any person shall not void such coverage on such policies. Each
insurance policy must state that it will not be canceled or changed without at
least thirty (30) days’ prior written notice to Wachovia.

 

9.9. To the extent available, copies of all legally valid certificates of
occupancy, customary zoning and use permits or letters, and no building
violation certifications evidencing compliance with all laws, ordinances and
regulations relating to the use and occupancy of the Property, to be found
acceptable by Bank in its sole discretion.

 

9.10. Borrower and Guarantor have delivered to Bank, audited financial
statements reflecting its operations during the fiscal year, including, without
limitation, a balance sheet, profit and loss statement and statement of cash
flows, with supporting schedules; all on a consolidated basis and in reasonable
detail. Bank acknowledges the adequacy of the audited financial statements it
has received for this purpose.

 

9.11. Operating Documents. On or prior to the date of any borrowing hereunder,
Wachovia shall have received from, Borrower, each Mortgagor, and Guarantor, as
applicable, a copy of such Borrower, each Mortgagor, or Guarantor’s by-laws,
partnership agreement, or operating agreement, certified as to completeness and
accuracy by an appropriate officer, manager or partner of such Borrower or
Guarantor, as applicable.

 

9.12. Charter Documents. Wachovia shall have received from each Borrower, each
Mortgagor, and Guarantor a copy of its Articles of Incorporation or
Organization, as appropriate for the legal entity and all other charter
documents of such Borrower, each Mortgagor, and Guarantor, as applicable, all
certified by the Secretary of State of the state of such Borrower’s, each
Mortgagor, or Guarantor’s incorporation or organization, as appropriate.

 

9.13. Certificate of Good Standing. Wachovia shall have received from Borrower,
each Mortgagor, and Guarantor, as applicable, a certificate of the Secretary of
State of the state of such Borrower’s, each Mortgagor’s or Guarantor’s
incorporation or organization, as applicable, as to the good standing of such
Borrower, each Mortgagor or Guarantor.

 

9.14. Certificate of Incumbency. Wachovia shall have received from Borrower,
each Mortgagor, and Guarantor, as applicable, a certificate of an appropriate
officer of such Borrower, each Mortgagor or Guarantor as to the incumbency an
signatures of the officers of such Borrower, each Mortgagor, or Guarantor
executing the Loan Documents.

 

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9.15. Borrowing Authorization. Bank shall have received from Borrower, each
Mortgagor, and Guarantor, as applicable, a borrowing resolution or other proof
of authority to enter into the transactions contemplated herein.

 

9.16. Deposit Account. Borrower shall create a demand deposit account at
Wachovia into which advance of the loan may be credited and from which monthly
payments shall be automatically deducted.

 

9.17. Primary Operating Account. Borrower shall maintain its primary operating
account with Bank, pending pricing and service by Bank acceptable to Borrower in
its sole and absolute discretion.

 

10. PERMANENT FINANCING. When Borrower elects to arrange permanent financing on
the property securing this loan, Borrower hereby grants Wachovia Securities and
Wachovia Corporation or its affiliates, including Wachovia Bank, National
Association and First Union National Bank (collectively “Wachovia”), the right
of first opportunity to provide permanent financing on the subject property on
terms satisfactory to Borrower. Borrower will provide first notification to
Wachovia of its intent to obtain permanent financing and will in a timely manner
use its best efforts to provide Wachovia with the information necessary to
enable it to obtain such financing. Notwithstanding the above, Wachovia
acknowledges that Borrower reserves the right in its sole and absolute
discretion to place permanent financing for the Property with lenders other than
Wachovia.

 

11. PARTIAL RELEASE: In the event any individual property is sold or refinanced,
the individual release provisions will be considered at that time by Bank,
however Bank will take into consideration the component of Recreational Vehicle
(“RV”) net operating income left in the borrowing base pool of properties with a
bias toward maintaining RV Net Operating Income at thirty percent (30%) or less.

 

12. SUBSTITUTION OF COLLATERAL: In the event Borrower formally requests a
substitution of the collateral into this facility, Bank would give consideration
to the request, however, Bank reserves the right to accept, reject, or modify
the request for substitution of collateral into the facility in its sole
discretion.

 

13. INTEREST RATE HEDGE: Borrower shall have the option to hedge the loan’s
floating interest expense for the full term of the loan by maintaining an
interest rate swap, cap or collar with Bank or other counterparty reasonably
acceptable to Bank in a notational amount equal to the then principal balance of
the loan and providing for a fixed rate reasonably satisfactory to Bank, and
containing such other terms and conditions as shall be reasonably acceptable to
Bank.

 

14. MINIMUM STANDARDS. In addition to the requirements set forth in the Loan
Documents, all surveys, insurance, title policies, construction documents,
environmental reports, payment and performance bonds, and any other due
diligence or additional documents required in connection with this Loan, shall
comply with Bank’s minimum standards in place from time to time for such
documents, which shall be provided in writing by Bank to Borrower upon request.

 

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This document may be executed, filed and/or recorded in one or more
counter-parts, each of which shall be deemed to be an original, and all of which
when taken together shall constitute and be the same document.

 

IN WITNESS WHEREOF, Borrower and Bank, on the day and year first written above,
have caused this Agreement to be executed under seal.

 

SIGNATURES AND ACKNOWLEDGMENTS ARE ON THE FOLLOWING PAGES

 

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ASSET INVESTORS OPERATING

PARTNERSHIP, L.P., a Delaware limited

partnership

   

BY:

 

AMERICAN LAND LEASE, INC.,

       

  a Delaware corporation,

  the sole General Partner

_________________________________________      

By: /s/ Shannon E. Smith

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Print Name: ________________________________

Signing solely as a witness

     

      Shannon E. Smith

      Chief Financial Officer

_________________________________________

Print Name: ________________________________

       

Signing solely as a witness

       

STATE OF ________________________________

       

COUNTY OF _______________________________

       

 

Acknowledged before me this          day of             , 2003, by Shannon E.
Smith, Chief Financial Officer of American land Lease, Inc., a Delaware
corporation, the sole General Partner of ASSET INVESTORS OPERATING PARTNERSHIP,
L.P., a Delaware limited partnership, on behalf of said entities. Such person is
personally known to me or has produced                              as
identification.

 

______________________________________(Seal)

Print Name:______________________________

Notary Public

Commission No.

Serial Number, if any: _______________________

 

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COMMUNITY BRENTWOOD JOINT VENTURE,

   

a Delaware general partnership

   

BY:

  AIOP FLORIDA PROPERTIES I, L. L. C.,
a Delaware limited liability company, its
Managing General Partner        

BY:

  ASSET INVESTORS OPERATING PARTNERSHIP, L.P.,
a Delaware limited partnership, its sole Member            

BY:

 

AMERICAN LAND LEASE, INC.,

               

a Delaware corporation,

               

its sole General Partner

____________________________________

             

By:

 

/s/ Shannon E. Smith

--------------------------------------------------------------------------------

Print Name: __________________________

                 

Shannon E. Smith

Signing solely as a witness

                 

Chief Financial Officer

____________________________________

Print Name: __________________________

                   

Signing solely as a witness

                   

STATE OF ___________________________

                   

COUNTY OF _________________________

                   

 

Acknowledged before me this          day of             , 2003, by Shannon E.
Smith, Chief Financial Officer of American land Lease, Inc., a Delaware
corporation, the sole General Partner of Asset Investors Operating Partnership,
L.P., a Delaware limited partnership, the sole Member of AIOP Florida Properties
I, L.L.C., a Delaware limited liability company, the Managing General Partner of
Community Brentwood Joint Venture, a Delaware general partnership, on behalf of
said entities. Such person is personally known to me or has produced
                         as identification.

 

______________________________________(Seal)

Print Name: ______________________________

Notary Public

Commission No.

Serial Number, if any: _______________________

 

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AIOP LOST DUTCHMAN NOTES, L.L.C., a Delaware

limited liability company

   

BY:

 

ASSET INVESTORS OPERATING PARTNERSHIP, L.P., a Delaware limited partnership, its
sole member

           

BY:

 

AMERICAN LAND LEASE, INC.,

               

a Delaware corporation,

               

its sole General Partner

______________________________________              

By:

 

/s/ Shannon E. Smith

--------------------------------------------------------------------------------

Print Name:______________________________

                 

Shannon E. Smith

Signing solely as a witness

                 

Chief Financial Officer

_______________________________________

Print Name: ______________________________

                   

Signing solely as a witness

                   

STATE OF ______________________________

                   

COUNTY OF _____________________________

                   

 

Acknowledged before me this          day of             , 2003, by Shannon E.
Smith, Chief Financial Officer of American land Lease, Inc., a Delaware
corporation, the sole General Partner of Asset Investors Operating Partnership,
L.P., a Delaware limited partnership, the sole Member of AIOP Lost Dutchman
Notes, L.L.C., a Delaware limited liability company, on behalf of said entities.
Such person is personally known to me or has produced
                                     as identification.

 

______________________________________(Seal)

Print Name: ______________________________

Notary Public

Commission No.

Serial Number, if any: _______________________

 

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COMMUNITY SAVANNA CLUB JOINT VENTURE,

   

a Delaware general partnership

   

BY:

 

AIOP FLORIDA PROPERTIES I, L. L. C., a Delaware

limited liability company, Managing General Partner

       

BY:

 

ASSET INVESTORS OPERATING

PARTNERSHIP, L.P., a Delaware limited

partnership, its sole Member

           

BY:

 

AMERICAN LAND LEASE, INC.,

               

a Delaware corporation,

               

its sole General Partner

______________________________________              

By:

 

/s/ Shannon E. Smith

--------------------------------------------------------------------------------

Print Name:_____________________________

                 

Shannon E. Smith

Signing solely as a witness

                 

Chief Financial Officer

______________________________________

Print Name:_____________________________

                   

Signing solely as a witness

                   

STATE OF ______________________________

                   

COUNTY OF _____________________________

                   

 

Acknowledged before me this          day of             , 2003, by Shannon E.
Smith, Chief Financial Officer of American land Lease, Inc., a Delaware
corporation, the sole General Partner of Asset Investors Operating Partnership,
L.P., a Delaware limited partnership, the sole Member of AIOP Florida Properties
I, L.L.C., a Delaware limited liability company, the Managing General Partner of
Community Savanna Club Joint Venture, a Delaware general partnership, on behalf
of said entities. Such person is personally known to me or has produced
                                 as identification.

 

______________________________________(Seal)

Print Name: ______________________________

Notary Public

Commission No.

Serial Number, if any: _______________________

 

14

--------------------------------------------------------------------------------

   

WACHOVIA BANK, NATIONAL ASSOCIATION

__________________________________________  

By:

 

/s/ Cary E. White, Senior Vice President

--------------------------------------------------------------------------------

Print Name: _________________________________

     

Cary E. White, Senior Vice President

Signing solely as a witness

       

__________________________________________

 

Print Name: _________________________________

       

Signing solely as a witness

       

STATE OF FLORIDA

       

COUNTY OF ________________________________

       

 

Acknowledged before me this          day of             , 2003, by Cary E.
White, Senior Vice President of Wachovia Bank, National Association, on behalf
of said bank. Such person is personally known to me or has produced
                                         as identification.

 

______________________________________(Seal)

Print Name: _____________________________

Notary Public

Commission No.

Serial Number, if any: _______________________

 

15