Exhibit 10.78


 


March
13, 2003


 


 


Pleasant Lake Apts. Corp.


Pleasant Lake Apts., Ltd.


23811 Chagrin Boulevard


Suite 200


Beachwood, OH 44122


 


Attn: 
Howard Amster


 


                Re:          Agreement to Purchase Units in


                                Horizon
Group Properties, L.P. (the “Partnership”)


 


Dear Howard:


 


This letter is to
confirm the agreement of Pleasant Lake Apts., Ltd. (“Pleasant Lake”), an
affiliate of Howard M. Amster, to purchase up to 261,628 limited partnership
units (the “Units”) in Horizon Group Properties, L.P. (the “Partnership”) from
Horizon Group Properties, Inc. (“HGPI”) and the agreement of HGPI to sell the
Units to Pleasant Lake at a purchase price of $5.16 per Unit for an aggregate
purchase price of up to $1,350,000.00, payable in full and in cash within three
business days following the receipt of notice from HGPI to Pleasant Lake that
the conditions set forth in this letter have been satisfied.  Pleasant Lake hereby acknowledges and agrees
on behalf of itself and any transferee, assignee or successor (i) that the
Units shall not now or at any future time be convertible or exchangeable for
securities of HGPI, and (ii) that the certificate representing the Units will
bear a legend indicating that they are not convertible or exchangeable.


HGPI represents
and warrants that it has converted the Units from general partnership units,
owns the Units and has full power and authority to sell the Units; such Units
will be transferred free and clear of any liens or encumbrances; such sale will
not violate the partnership agreement of the Partnership, the Articles of
Amendment and Restatement of HGPI or any other contract or agreement that HGPI
is a party to; such sale will not violate any state or federal securities laws;
that all authorizations and approvals required for the sale of the Units have
been obtained; that no assessments or other amounts are owed to the Partnership
by the owner of the Units; and that the purchase of the Units will not cause a
violation of the Excepted Holder Certificate of Howard M. Amster.


Pleasant Lake
represents and warrants that it has full power and authority to purchase the
Units; that such purchase will not violate any contract or agreement to which
it is a party; that such purchase will not violate any state or federal
securities laws; and that Howard M. Amster controls and is the holder of
approximately 96% of the ownership interests in Pleasant Lake.  In addition, Pleasant Lake acknowledges that
it has not relied on any advice of HGPI, the Partnership or any of their respective
affiliates, employees, directors, counsel or other advisors regarding the
federal, state 


 


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and local tax
consequences or tax attributes of owning the Units.  Pleasant Lake is aware that there are substantial limitations and
restrictions on the circumstances under which Pleasant Lake may offer to sell,
transfer or otherwise dispose of the Units, so that it might not be possible to
liquidate this investment readily and it may be necessary to hold the
investment for an indefinite period. 
Pleasant Lake is an accredited investor under the Securities Act of
1933, as amended, is not a registered investment company under the Investment
Company Act of 1940, as amended, and is not a business development company as
defined in the U.S. Investment Advisers Act of 1940, as amended.


The
representations and warranties of the parties shall be true as of the closing.


This Agreement
shall be further conditioned upon receipt by Pleasant Lake of (i) certified
resolutions of HGPI approving the sale of the Units to Howard M. Amster or his
affiliate; (ii) an acceptance of Pleasant Lake as a substituted limited partner
executed by HGPI. This Agreement shall be further conditioned upon receipt by
the Partnership of an Acknowledgment by Substituted Limited Partner from
Pleasant Lake in form satisfactory to the Partnership.


HGPI hereby
commits to cause to be prepared and filed with the Form K-1 for each partner of
the Partnership, schedules listing the profit and loss of each of the
properties owned directly or indirectly by the Partnership commencing for the
year ending December 31, 2002.


At the closing of
this transaction, HGPI shall deliver the Units to Pleasant Lake with
duly-executed unit powers attached.  At
such closing, HGPI and the Partnership shall provide Pleasant Lake with an
executed letter directing the transfer agent to transfer such Units into the
name of Pleasant Lake.


This Agreement
sets forth the complete understanding of HGPI and Pleasant Lake and shall be
binding and enforceable on each party in accordance with its terms.




	
   

  	
   

  	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  /s/ Gary J. Skoien

  
	
   

  	
   

  	
   

  	
   

  	
  Gary J. Skoien

  
	
   

  	
   

  	
   

  	
   

  	
  Chairman and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
  March 13, 2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  PLEASANT LAKE APTS., LTD.

  	
   

  	
   

  	
   

  
	
  By

  	
  Pleasant Lake Apts. Corp.,

  	
   

  	
   

  	
   

  
	
   

  	
  General Partner

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Howard M. Amster

  	
   

  	
   

  	
   

  
	
   

  	
  Howard M. Amster, President

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  March 13, 2003

  	
   

  	
   

  	
   

  






 


 


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