Document:

Filed by sedaredgar.com - Crown Oil and Gas Inc. - Exhibit 10.13

  	CERTIFIED TRUE TRANSLATION 

        SLOVO & DELO TRANSLATION SERVICES 

LICENSE 

  FOR THE RIGHT TO USE 

  SUBSURFACE MINERAL RESOURCES

  	S 	R 	T 	 	0 	1	1	5	2	 	N 	R 

	SERIES 
	NUMBER 	 TYPE 

                                                                    
  "ATTIK-NEFT" Limited Liability Company 

  Issued to ---------------------------------------------------------------------------------------------------------------------------------------- 

                                                                                             (full name of legal entity)

                                                                                
Director, Elena Yurievna Denisova 
represented by -------------------------------------------------------------------------------------------------------------------------------- 
                                                             (first name,
middle name, last name of authorized representative of legal
entity) 

                                                  
geological exploration, prospecting and production of hydrocarbons

purpose and types of works
---------------------------------------------------------------------------------------------------------------

                                                                          
within limits of Krasnoarmeisky-2 licensed area 
----------------------------------------------------------------------------------------------------------------------------------------------------

                                                                                   
Krasnoarmeisky district of Saratov Region 
Subsurface site is located at -------------------------------------------------------------------------------------------------------------- 
                                                                                           
(name of locality, district,
region) 

Description of limits of subsurface site,
  corner point coordinates, copies of topographical plans, sections, etc are indicated
  in Appendix     1, 3     (number of appendix) 

Right to use land plots received from:
Administration of Krasnoarmeisky
Municipality of Saratov Region, letter No. 01-10/1844 of August 08,
2006

Copies of documents and description of
  limits of subsurface site are indicated in Appendix    
  1, 4      

                                                                                                                                                         
    (number of appendix)
  

Subsurface site has a status of:                        
  geological allotment and mining allotment            
               
  

License expiration
date:                                                                
August 19, 2032          

SEAL 

	/Seal: FEDERAL AGENCY OF SUBSURFACE USE, 
	SARATOV TERRITORIAL AGENCY OF SUBSURFACE USE 
	R E G I S T E R E D 
	" 20 "      
      August   2007 
	In register under no.      
        1152 / SRT 01152 NR            
	Signature:                     
        /Morozov, Head of Agency           

The following documents are integral
parts of the present license: 

	 	1. 	
      Subsurface Use Agreement for
      Geological Prospecting, Exploration and Production of Hydrocarbons within
      limits of Krasnoarmeisky-2 Area in Saratov Region – 12
  pages;

	 	 	 
	 	2. 	
      Order No. 44 dated July 30, 2007 of
      Saratov Territorial Agency on Subsurface Use – 2 pages;

	 	 	 
	 	3. 	
      Location map of Krasnoarmeisky-2 Area
      – 1 page;

	 	 	 
	 	4. 	
      Letter No. 01-10/1844 of August 08,
      2006 of Administration of Krasnoarmeisky Municipality of Saratov Region –
      1 page;

	 	 	 
	 	5. 	
      Application for participation at the
      auction for the right of subsurface use at Krasnoarmeisky-2 area –
      1p;

	 	 	 
	 	6. 	
      Certificate of state registration of
      legal entity – 1 page.

 

     Annex
No.1

  to License SRT 01152NR

LICENSE AGREEMENT 
on conditions of subsurface use
at Krasnoarmeisky-2 area, 
located in Saratov region 

          The
territorial subsurface use agency for Saratov Region (hereinafter referred to as
the Subsurface Manager) represented by its Director V.Y. Morozov, acting on the
basis of the Regulations approved by Decree No. 57 of the Federal Agency for
Subsurface Use, dated January 19, 2007, on the one hand, and the Limited
Liability Company, Attik-Neft (hereinafter referred to as the License Holder),
represented by its Director E.Y. Denisova, acting by virtue of the Company's
Charter, on the other hand, have concluded this license agreement (hereinafter
referred to as the Agreement) as to the following subsurface use conditions of
Krasnoarmeisky-2 area:

Article 1. General provisions 

          1.1.
The Subsurface Manager grants the License Holder the right to use subsurface
resources at Krasnoarmeisky-2 area aimed at geological prospecting, exploration
and production of hydrocarbon materials.

          1.2.
The right to subsurface use of Krasnoarmeisky-2 is granted to the License Holder
in accordance with the provisions of the Law of the Russian Federation "On
Subsurface Resources", Article 10.1, Clause 5, based on the decision of the
Auction Committee approved on the basis of Decree No. 44 of the territorial
subsurface use agency for Saratov Region dated July 30, 2007 (Annex 2 to the
License).

          1.3.
The Krasnoarmeisky-2 subsurface site may not be a subject of purchase and sale,
donation, inheritance, deposit, pledge or transferred in any other form.

          1.4.
The right to use subsurface resources of Krasnoarmeisky-2 area can be
transferred from one person to another to the extent provided for by federal
laws.

Article 2. Term of subsurface use 

          2.1.
The right to subsurface use of Krasnoarmeisky-2 area shall remain in effect
during the entire license period and shall become effective on the day of
license state registration.

          2.2.
The subsurface use term can be extended by the License Holder in accordance with
the established order for the period of field development calculated on the
basis of the feasibility study related to hydrocarbon field development ensuring
subsurface efficient use and protection.

          2.3.
The License Holder can waive the right to subsurface use in accordance with the
established order notifying the Subsurface Manager of the fact in writing at
least six months prior to the stated date.

          2.4.
The right to subsurface use shall be forfeited by the Subsurface Manager
pursuant to clause 3 Part 1 Article 20 of the Law of Russian Federation "On
Subsurface Resources" in case of failure to pay the charges and fees specified
in clauses 6.1.1. and 6.1.2 hereof as they fall due.

          2.5.
The right to subsurface use shall also be forfeited within the boundaries of the
geological allotments in the cases specified in clause 4.3 hereof.

          2.6
The right to subsurface use can be early forfeited, suspended or limited by the
Subsurface Manager on the basis and in accordance with the order established by
Part 2 Article 20, 21 and 23 of the Russian Federation Law "On Subsurface
Resources", provided that the License Holder violated essential license
conditions.

          Essential
license conditions are the requirements to the License Holder specified in
clauses 4.2, 4.4, 6.2.1, 6.2.2. and 6.4 hereof.

          2.7.
Pursuant to Articles 21, 26 of the Law of Russian Federation "On Subsurface
Resources", before termination of the subsurface use term, including the case of
early subsurface use right termination the License Holder shall, in accordance
with the established order, do the following: 

          1)
to accomplish or discontinue all kinds of geological prospecting, exploration or
production of hydrocarbon materials at the subsurface site, as well as other
accompanying works; 

          2)
to carry out all and any required and duly approved abandonment or suspension of
operation facilities, used for purposes contemplated herein within the framework
of this Agreement; 

          3)
to bring the drilling wells and the other facilities into the state ensuring
security and health safety of the population, environmental protection as well
as safety of the field, wells and facilities; 

          4)
to conduct reclamation of the disturbed lands in accordance with the agreed and
examined design documents and hand them over to the respective authorities,
which provided the land allotments, 

          5)
to execute payments of all dues and taxes, related to subsurface use and
negative environmental impact; 

          6)
in compliance with the established procedures make geological, field and other
records available for filing; 

          7)
to return the license to subsurface use and the mining allotment.

          The
License Holder shall bear the responsibility in accordance with the legislation
of the Russian Federation until the abandonment and conservation activities are
completed.

Article 3. Description of the Subsurface Area 

          3.1.
The Krasnoarmeisky-2 subsurface site is located on the territory of
Krasnoarmeisk district, the Saratov region. The subsurface site location map is
specified in Annex 3 to the license.

          Krasnoarmeisky-2
subsurface site is confined to its preliminary boundary on the map with the
following geographic corner point coordinates:

	Point 	Northern latitude 	Eastern longitude

	No. 	 	 
	1 	51 08'24" 	45 27'48" 
	2 	51 09'24" 	45 34'24" 
	3 	51 09'26" 	45 45'40" 
	4 	50 59'40" 	45 45' 35" 
	5 	50 59'32" 	45 24' 50" 

          The
site area is 396.7 sq. km. 

          3.2.
For the period of conducting geological prospecting, the subsurface use area is
granted the status of a geological allotment, which is unrestricted in terms of
its depth.

          In
case of field discovery, the subsurface site is preliminary assigned the status
of mining allotment without depth limitations for the exploration period, within
the field external boundaries.

          The
subsurface sites of discovered fields are assigned the status of mining
allotments with the depth limitation of 100 m below the bottom of the lower
producing formation within the specified field boundaries for the hydrocarbons
production period.

          Determination
of the specified boundaries of the mining allotment shall be conducted in
accordance with the established order after field exploration completion, state
expert review of hydrocarbon resources, approval of the engineering design
documentation related to field development with acquisition of required approval
and due diligence results.

          3.3.
Within the boundaries of Krasnoarmeisky-2 subsurface site there are neither
hydrocarbon reserves (on balance at the Russian Federal State Reserves register)
nor natural conservation territories.

          The
prospective resources of Krasnoarmeisky-2 subsurface site are equal to 8.3
million tons of oil equivalent under D1 category.

          3.4.
The prior consent for land sites allotment for geological prospecting,
exploration and production of hydrocarbon materials at the subsurface site was
given by the Administration of Krasnoarmeisk municipal district, Saratov region
(Annex 4 to the license).

          3.5.
Allotment of the land site within the ultimate boundaries and registration of
the land rights of the subsurface user are conducted in accordance with the
Russian Federation legislation.

Article 4. Terms and Conditions of Subsurface Use 

          4.1.
The License Holder shall ensure funding of the works aimed at geological
prospecting, exploration and production of hydrocarbons on the Krasnoarmeisk-2
subsurface site at its own expense, including attracted funds.

          4.2.
The License Holder undertakes to execute the following set of works aimed at
geological prospecting of the subsurface site within the first five-years of
license: 

          4.2.1.
To develop, agree and approve the "Program of geological prospecting and
appraisal of the subsurface site of Krasnoarmeisk-2 area" in accordance with the
established order within a one year period from the date of license state
registration.

          The
prospecting program can be specified by means of relevant subprograms for
particular kinds of works, which are considered integral part of the "Program of
geological prospecting and appraisal of the subsurface site of Krasnoarmeisk-2
area" for clause 4.2.4. hereof.

          4.2.2.
To start 2D seismic works within a two-year period from the date of license
state registration and to complete at least 350 linear kilometers of seismic
profiles within a three-year period,
including: 
               -
2nd year of license period - 150 linear
km, 
               -
3rd year of license period - 100 linear
km, 
               -
4th year of license period - 100 linear km, 

          4.2.3.
To start drilling of the first exploration well within a three-year period from
the date of license state registration and to complete construction of at least
3 exploration wells within a two-year period,
including: 
               –
4th year of license period - 2
wells; 
               –
5th year of license period - 1 well.

          4.2.4.
To ensure completion of the set of works aimed at hydrocarbon fields discovery
and evaluation within a five-year period from the date of license state
registration in accordance with the approved "Program of geological prospecting
and appraisal of subsurface site of Krasnoarmeisk-2 area", with volume of works
not lower than the figures specified in Clauses 4.2.2 and 4.2.3 hereof.

          4.2.5.
To submit a reserves appraisal report based on the outcome of test production
and exploration operations to the federal and respective territorial geologic
information fund within a five-year period from the date of license state
registration.

          4.2.6.
To submit to Saratovnedra an information report on the outcomes of the works
conducted as well as a letter of intent (if any) to further conduct prospect
evaluation survey at separate promising areas with specification of their
boundaries, additional volumes, kinds and terms of works, within a five-year
period from the date of license state registration.

          4.3.
The right to subsurface use within the boundaries of the geological allotment
shall be terminated after expiration of a five-year period from the date of
license state registration, except for the following areas:

	 	1) 	
      The areas of discovered hydrocarbon fields, where the
      License Holder plans to conduct further exploration and production of
      hydrocarbon materials;

	 	2) 	
      The areas, where the License Holder plans to conduct
      further prospect prospecting and appraisal survey, on the basis of the
      prompt written notice.

          4.4.
In case of field discovery within the boundaries of the subsurface site the
License Holder shall conduct the following set of works: 

          4.4.1.
To submit the report on hydrocarbons reserve calculation for the state expert
review within a one-year period from the field discovery date (the first
commercial hydrocarbons inflow during exploration well testing); 

          4.4.2.
To agree and approve the "Program of exploration of resources at the discovered
field" in accordance with the established order within a one-year period from
the date of state expert review of the discovered field reserves;

          4.4.3.
To start seismic works (2D or 3D) or drilling of the exploration well within the
boundaries of the discovered field within a two-year period from the date of
state expert review of the reserves; 

          4.4.4.
To complete construction of at least one exploration well at the discovered
field within a three-year period from the date of state expert review; to
conduct the works in accordance with the agreed and approved "Program of
exploration of resources at the discovered field" in accordance with the
established order; 

          4.4.5.
To ensure completion of the set of works within a five-year period from the date
of state expert review of the reserves in accordance with the "Program for
exploration of resources at the discovered field", with the work volume not
lower than the figures specified in clauses 4.4.4 hereof, and to submit the
hydrocarbons appraisal report for the state expert review.

          4.4.6.
To elaborate an engineering design document for the respective field development
stage (test production or experimental program) and submit for approval and
expert review in accordance with the established order within a one-year period
from the date of state expert review of the hydrocarbon reserves; 

          4.4.7.
To bring the field to the respective development stage within a one-year period
from the approval date of the engineering design document; 

          4.4.8.
To bring the field to the subsequent stages of its development within time
period, determined by the authorized state bodies, during approval and expert
review of the previously compiled engineering design documents.

          4.5.
Field prospecting works on the subsurface site are allowed provided the
following requirements are met: 

          1)
availability of the operation plan, agreed in accordance with the established
order, which underwent the required approvals and expert reviews; 

          2)
availability of state registration made in accordance with the established
order; 3) availability of registered land allotments related to respective areas
of work.

          4.6.
Production of hydrocarbons is allowed provided that the following requirements
are met: 

          1)
availability of the hydrocarbon reserves approved in accordance with the
established order and accompanying valuable elements; 

          2)
availability of the design documents for field development and construction
approved in accordance with the established order, which underwent the required
approvals and expert reviews; 

          3)
availability of the mining allotment certifying the specified allotment
boundaries, registered by the territorial body under the Federal Service for
Environmental, Technological and Nuclear Supervision; 

          4)
availability of registered land allotments related to respective areas of
work.

               4.7.
The License Holder shall ensure compliance with the approved design documents
for subsurface geological prospecting, field exploration and

hydrocarbons production, including the sections related to
hydrocarbons production levels and achievement of the design capacity. 

          4.8.
The License Holder accepts the well stock, located within the boundaries of the
subsurface site, including liquidated and suspended wells, in accordance with
the established order within a one-year period from the date of license state
registration.

          4.9.
The License Holder shall develop and approve the project of abandonment
operations at the field in accordance with the established order after obtaining
required approvals and expert review results within a two-year period prior to
the scheduled termination of hydrocarbon resources production.

          4.10.
In case of new hydrocarbon deposit discovery within the boundaries of the fields
under development, the License Holder shall submit respective information on new
deposits and specified intentions concerning this discovery to Rosnedra (the
Federal Agency on Subsurface Use) and its territorial subdivision within a
30-day period from the acceptance date of the test results concerning the
producing formation.

          The
License Holder shall have a right to develop a new deposit after state expert
review of the reserves and approval of the engineering design document,
concerning deposit development or supplements to the effective design documents
in accordance with the established order.

          4.11.
The hydrocarbon materials extracted from the deposit shall be deemed property of
the License Holder.

Article 5. Efficient Subsurface Management and Protection,
Environmental and Safety Requirements 

          5.1.
The License Holder is obliged: 

          5.1.1.
To conduct assessment of the current background pollution level at the
operational area of the subsurface site within a one-year period from the date
of license state registration.

          5.1.2.
Within a two-year period from the date of license state registration to develop
and get approved the environmental monitoring program and the subsurface state
monitoring program in accordance with the established order, to start its
implementation voluntarily submitting the information to state regulatory
bodies.

          5.1.3.
To promptly inform the environmental bodies and the executive authorities of the
Saratov region of all emergency emissions (discharges) into the environment.

          5.1.4.
To prevent accumulation of industrial and domestic waste in water catchment
areas and places of occurrence of the subsurface waters used for domestic and
industrial water supply.

          5.1.5.
To ensure exhaustive character of geological survey, efficient complex use and
protection of subsurface.

          5.1.6.
To prevent excessive losses of hydrocarbon materials and random depletion of the
most producing field areas, which results in general disturbance of the deposit
energy system.

          5.1.7.
To continually maintain documentation concerning hydrocarbon production, as well
as geological, surveying, routine and other documentation required for conduct
of all kinds of operations on the subsurface site and to ensure storage of this
documentation.

          5.1.8.
To ensure utilization of the produced gas in accordance with the design
documents concerning field development, which were approved in accordance with
the established order and underwent all required adjustments and expert
reviews.

          5.1.9.
To keep reliable record of the recoverable and non-recoverable hydrocarbon
reserves pertaining to all of the field development related facilities.

          5.1.9.
To exercise control over technical state of the well stock, including the
liquidated ones, those located within the boundaries of the subsurface site
within the license validity period, to eliminate uncovered violations at its own
expense.

          5.1.10.
To observe the established order concerning suspension and abandonment of the
wells (which will not to be used) and recultivation of disturbed lands.

          5.1.11.
To ensure observance of other requirements of the Russian Federation
legislation, as well as standards (norms, regulations) approved in accordance
with the established order regulating the issues of subsurface efficient use and
protection, environmental protection, safe conduct of operations.

          5.2.
The basic requirements to subsurface efficient use and protection, environmental
protection and safe conduct of operations related to geological prospecting,
exploration and production of hydrocarbons within the boundaries of
Krasnoarmeisk-2 area shall be set in design documents concerning respective
kinds of operations and agreed with the territorial subdivision of Federal
Service for Environmental, Technological and Nuclear Supervision.

Article 6. Taxes and Payments 

          6.1.
The License Holder shall pay the following taxes and dues to the budget of the
Russian Federation for subsurface use: 

          6.1.1.
Lump sum payment for subsurface use of Krasnoarmeisk-2 area in the amount of
11,000,000 (eleven million) Russian rubles fixed in accordance with a Decree "On
approval of Auction results" No. 44 dated July 20, 2007, (Annex 2 to the
license), net of the previously paid down payment in the amount of 10,000,000
(ten million) Russian rubles.

          The
residual clause of the lump sum payment shall be paid within a 30-day period
from the moment of state registration of the license to subsurface use.

          6.1.2.
The fee for issuing the license to subsurface use in the amount of 7,500 (seven
thousand five hundred) rubles shall be paid within a 20-day period from the date
of license state registration.

          6.1.3.
The payment for using geological information on subsurface, which was initially
obtained as a result of state-initiated geological prospecting of subsurface and
provided by the Federal Agency for Subsurface Use or its territorial
subdivision.

          The
exact amount of payment for using geological information shall be fixed in
accordance with the established order with due regard to its scope, kind and
application properties.

          6.2.
The License Holder shall make the following regular payments for subsurface use:

          6.2.1.
Regular payments for subsurface use aimed at hydrocarbon fields exploration and
appraisal shall be made for the total subsurface site area at the following rate
(from the date of license state
registration): 
               120
Russian rubles per 1 sq.km – the first three calendar
years, 
               240
Russian rubles per 1 sq.km – the fourth-fifth calendar
years, 
               360
Russian rubles per 1 sq.km – from the sixth calendar year.

          6.2.2.
The regular payments for subsurface use aimed at hydrocarbon fields exploration
shall be made for the total subsurface site area, where hydrocarbon reserves are
established and recorded in the Russian Federal State Reserves register (outside
the mining allotment line) at the following rate (from the date of license state
registration): 
               5,000
rubles per 1 sq.km – the first nine calendar
years, 
               10,000
rubles per 1 sq.km – the tenth-eleventh calendar
years, 
               15,000
rubles per 1 sq.km – the twelfth-fourteenth calendar
years.
               20,000
rubles per 1 sq.km – from the fifteenth calendar year. 

          6.3.
For the purposes of this Agreement the time period according to the Gregorian
calendar beginning from the date of license state registration and ending on
December 31 of the same year shall be considered the first calendar year.

          The
period from January 1, to December 31 of each year shall be deemed subsequent
years.

          6.4.
The License Holder shall pay the other taxes and dues fixed in accordance with
the Russian Federation legislation on taxes and dues, including the land fee and
the mineral extraction tax when producing hydrocarbons.

          6.5.
In case of making amendments into the Russian Federation legislation the License
Holder shall pay taxes and dues with regard to these amendments.

Article 7. Subsurface Data 

          7.1.
Geological and other information on subsurface obtained at the state expense,
including withholdings for rehabilitation of the mineral resources base shall be
deemed state property.

          The
License Holder has a right to obtain exhaustive geological information on the
provided subsurface site for a fee.

          7.2.
The geological information obtained by the License Holder at its own expense
shall be deemed its property and according to the Law of Russian Federation "On
Subsurface Resources" shall be submitted by the License Holder to the federal
and territorial geological information collection with determination of its use
conditions, also for commercial purposes.

          7.3.
The License Holder shall ensure integrity of the core material obtained in the
course of well drilling or hand over to the data storage enterprise at least
50

% of the core material on a free basis for subsequent storage
as agreed with the Subsurface Manager. 

          7.4.
The information confidentiality degree, the procedure and conditions of its use,
its protection mode shall be defined by the information owner in accordance with
the Russian Federation legislation.

          7.5.
The Ministry of Natural Resources of Russian Federation, Rosnedra and its
territorial subdivisions have a right to gratuitously use the information owned
by the License Holder solely to the state benefit when elaborating federal and
territorial programs for subsurface geological survey and use, rehabilitation of
the mineral resources base, arranging auctions and contests concerning the
neighboring sites.

Article 8. Reports 

          8.1.
The License Holder is obliged: 

          8.1.1.
To promptly submit reliable reporting documents on performance results on the
subsurface site envisaged by the Russian Federation legislation to the
respective governmental authorities.

          8.1.2.
To submit the following information to the federal and territorial geological
information collection: 

          1)
report on results of seismic and other operations, including graphical
applications – within the terms set by the state registration service concerning
geologic exploration, 

          2)
report on drilling results and exploration well testing, including graphical
applications - within the terms set by the state registration service concerning
geologic exploration, 

          3)
report on hydrocarbons reserve appraisal – within a one-month period from the
date of state expert review conclusion on reserves, 

          4)
other reporting documents, concerning results of the geological exploration
conducted on the subsurface site, including issue-related documents.

          8.1.3.
To inform the Subsurface Manager of all cases of new deposit or field discovery
within the boundaries of the subsurface site.

          8.1.4.
To annually submit information on reserves increment and hydrocarbons
production, including the losses of all components, to the Subsurface Manager in
accordance with the established order.

          8.2.
The License Holder shall participate in all meetings, conferences and other
events arranged by the Subsurface Manager in order to discuss geologic
exploration results and plans, as well as the other issues concerning subsurface
use, including rehabilitation of the hydrocarbons resource base.

Article 9. Monitoring of Compliance with the Subsurface Use
Terms And Conditions 

          9.1.
State control over geological prospecting, subsurface efficient use and
protection is exercised by state geological supervisory bodies and state
mining

supervisory bodies in cooperation with environmental and other
supervisory bodies. 

          9.2.
State control over safe conduct of the operations related to subsurface use is
exercised by state mining supervisory bodies.

          The
state mining supervisory bodies shall perform their activities in cooperation
with state geological supervisory bodies, environmental and other supervisory
bodies.

          9.3.
Control and supervision over compliance with subsurface use conditions on the
part of the License Holder, carrying out inspections and taking measures aimed
at elimination of traced violations shall be exercised in accordance with the
legislation of the Russian Federation.

          9.4.
The License Holder shall provide representatives of the respective supervisory
bodies with transport, access to the operating facilities, as well as the
required information related to subsurface site use on a confidential basis
under the issued license.

Article 10. Validity period of the Agreement 

          10.1.
This Agreement is integral part of the license to subsurface use and shall come
into effect from the date of its state registration and be valid within the
validity period of the license.

Article 11. Miscellaneous 

          11.1.
The headings of the articles contained in this Agreement are specified solely
for convenience purposes and shall not affect its interpretation.

          11.2.
In case of contradiction of all or separate provisions hereof with the
provisions of the newly adopted legislation of the Russian Federation, the
Parties shall be guided by the newly adopted provisions of the Russian
Federation legislation and shall make respective amendments into this Agreement
to eliminate the aforesaid contradictions.

          11.3.
Any amendments and complements to the provisions of this Agreement can be made
via finalizing a supplement to this Agreement signed by both of the Parties.

          The
complements to this Agreement is integral part of the subsurface use license and
shall come into effect from the date of their state registration in accordance
with the order similar to that employed for license state registration.

          11.4.
The cooperation of License Holder and the local authorities of the Saratov
region shall be fixed by respective agreements on regional social and economic
development.

          11.5.
The License Holder shall inform the Subsurface Manager of all changes in contact
telephone numbers and articles of association within a 15-day period from the
introduction date of these changes.

          11.6.
The Parties shall be guided by the legislation of the Russian Federation in
respect to all the issues not specified in the license to subsurface use of
Krasnoarmeisk-2 area and its Annexes.

Article 12. Addresses of the Parties: 

12.1.     
Subsurface Manager: 
Territorial Subsurface Use Agency for Saratov
region, 
410012, Saratov, Moskovskaya Street, 70 

12.2.     
License Holder: 
Attik-Neft Limited Liability Company,
410005,
Saratov, Bolshays Gornaya Street, 231/241 

 

	Head 	Director of 
	Territorial Subsurface Use Agency 	ATTIK-NEFT LLC 
	for Saratov Region 	  
	  	  
	___________ V.Y. Morozov 	___________ E.Y. Denisova 
	  	  
	August 15, 2007 	 August 16, 2007 

	FEDERAL SUBSURFACE USE AGENCY 	 	  
	(ROSNEDRA) 	 	ATTIK-NEFT 
	TERRITORIAL SUBSURFACE USE 	 	Limited Liability 
	AGENCY FOR SARATOV REGION 	 	Company 
	(SARATOVNEDRA) *OGRN (PRIMARY 	 	Saratov 
	STATE REGISTRATION NUMBER) 	 	  
	1040405025040*prsale_agreement.htm

    AGREEMENT
OF PURCHASE AND SALE

     

    OF
LIMITED PARTNERSHIP INTERESTS

     

    By this
Agreement of Purchase  and Sale of Limited Partnership Interests (this
“Agreement”) dated as of
March 31, 2009 (the “Effective
Date”) AMERICAN
COMMUNITY PROPERTIES TRUST, a Maryland real estate
investment trust (“ACPT”), AMERICAN LAND DEVELOPMENT U.S.,
INC., a Maryland corporation (“American Land”), and IGP GROUP
CORP., a Puerto Rico corporation (“IGP Group”) (ACPT, American
Land and IGP Group are collectively referred to in this Agreement as “Seller”), agrees to sell and
convey to PARTNERS BUSINESS
EQUITIES, LLC,
a Puerto Rico Limited Liability Company, and its associated capital
investors, represented herein by Partners Business Equities,  LLC
or its permitted assignee (“Purchaser”), who agrees to
purchase and pay for all of Seller’s limited partnership interests in Interstate General Properties Limited
Partnership S.E., a Maryland limited partnership  (“IGP”), and all rights of
Seller associated therewith and/or pertaining thereto.

     

    WHEREAS,
American Land and IGP Group Corp are wholly owned subsidiaries of ACPT;
and

     

    WHEREAS,
IGP Group owns the Class A partnership interests in IGP and American Land owns
the Class B partnership interests in IGP; and

     

    WHEREAS,
as of the date of Closing, Seller, directly or indirectly, will own and control
all of the partnership interests in IGP; and Seller and Purchaser desire for
Seller to assign, or cause to be assigned, to Purchaser such interests in IGP
and to convey to Purchaser certain other management agreements pursuant to the
terms and subject to the conditions herein; and

     

    WHEREAS,
IGP owns the general partner interests in nine (9) limited partnerships (the
“Project Partnerships”)
and limited partner interests in two of the Project Partnerships;
and

     

    WHEREAS,
the Project Partnerships own twelve (12) multifamily residential properties, all
of which are located in the Commonwealth of Puerto Rico (the “Subject Properties”);
and

     

    WHEREAS,
by obtaining ownership of IGP, Purchaser will be:  (i) obtaining
control of the Project Partnerships and the Subject Properties; (ii) acquiring
the Related Leasehold Property (as defined below); and, (iii) obtaining all
other assets of IGP except the Excluded Assets (as defined below) and Ineligible
Liabilities (as defined below).

     

    NOW
THEREFORE, FOR AND IN CONSIDERATION of Ten Dollars and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Seller and Purchaser hereby agree as follows:

     

    1. DEFINITIONS

     

    For
purposes of this Agreement, the following terms have the meanings specified or
referred to in this Section
1:

     

    A.  “Affiliates” -- as to any
Person, any other person owned or controlled by, or under common ownership or
control with, the subject Person.

     

    B. “Encumbrance” -- any charge,
claim, community property interest, condition, equitable interest, lien, option,
pledge, security interest, right of first refusal, or restriction of any kind,
including any restriction on use, voting, transfer, receipt of income, or
exercise of any other attribute of ownership.

     

    C. “Excluded Assets” -- those
assets set forth on Schedule 1(C)
attached hereto together with the leasehold interests (the “Excluded Leases”) identified
on Schedule
1(C-1) attached hereto. 

     

    D. “Existing Indebtedness” -- any
financial obligation of any Project Partnership secured by an Encumbrance on the
Subject Properties (whether one or more) owned by such Project
Partnership.

     

    E. “Governmental Body” --
any:

     

    
      	
              (i)  

            	
              nation,
      state, commonwealth, county, city, town, village, district, or other
      jurisdiction of any nature;

            

    

     

    
      	
              (ii)  

            	
              federal,
      state, commonwealth, local, municipal, foreign, or other
      government;

            

    

     

    
      	
              (iii)  

            	
              governmental
      or quasi-governmental authority of any nature (including any governmental
      agency, branch, department, official, or entity and any court or other
      tribunal);

            

    

     

    
      	
              (iv)  

            	
              multi-national
      organization or body; or

            

    

     

    
      	
              (v)  

            	
              body
      exercising, or entitled to exercise, any administrative, executive,
      judicial, legislative, police, regulatory, or taxing authority or power of
      any nature.

            

    

     

    F. “IGP Assets” -- all of the
assets owned or controlled by IGP including, without limitation, the Partnership
Interests in the Project Partnerships, the Subject Properties, the Related
Leasehold Property, and all other assets of IGP as of the date of Closing
excepting only the Excluded Assets and the Ineligible Liabilities.

     

    G. “Ineligible Liabilities” --.
the stated or contingent liabilities of IGP not related to the IGP Assets
expressly included in the financial statements and records of IGP or otherwise
expressly disclosed in writing by Seller on or prior to the Closing and
specifically including accrued employee salaries, regular vacations, Christmas
bonus payments required by Puerto Rico Legal Requirement, payroll taxes, 401(K)
contributions, and medical insurance for all employees not retained by
Seller.

     

    H. “Knowledge” -- an individual
will be deemed to have “Knowledge” of a
particular fact or other matter if such individual is actually aware of such
fact or other matter. A Person (other than an
individual) will be deemed to have “Knowledge” of a
particular fact or other matter if any individual who is currently serving as a
director, officer, partner, executor, or trustee of such Person (or in any
similar capacity) has, or at any time had, Knowledge of such fact or other
matter.

     

    I. “Legal Requirement” -- any
Governmental Body order, constitution, law, ordinance, principle of common law,
regulation, statute, or treaty.

     

    J. “Management Agreements” -- the
management agreements between each of the Project Partnerships as owner and IGP
as manager together with the management contracts between IGP and certain
non-for-profit entities, all as described on Schedule 1(J)
attached hereto.

     

    K. “Material Adverse Effect as
used in this Agreement, means any change in or effect on the business,
operations or financial condition of the Seller or any of its subsidiaries that
is materially adverse to the Seller and its subsidiaries or affiliates taken as
whole except for (i) any change or effect resulting from general economic,
financial or market conditions or (ii) any change or effect resulting from
conditions or circumstances generally effecting the community development,
development and ownership of rental apartment properties, property management,
and development of commercial rental properties.

     

    L. “Organizational Documents” --
(a) the articles or certificate of incorporation and the bylaws of a
corporation; (b) the partnership agreement and any statement of partnership of a
general partnership; (c) the limited partnership agreement and the certificate
of limited partnership of a limited partnership; (d) the operating agreement and
certificate of formation of a limited liability company; (e) any charter or
similar document adopted or filed in connection with the creation, formation, or
organization of a Person; and (f) any amendment to any of the
foregoing.

     

    M. “Partnership Interests” -- all
of the Class A and Class B partnership interests in IGP, and all other rights of
Seller associated therewith and/or pertaining thereto identified on Schedule 1(L)
attached hereto.

     

    N. “Person” -- any individual,
corporation (including any non-profit corporation), general or limited
partnership, limited liability company, joint venture, estate, trust,
association, organization, labor union, or other entity or Governmental
Body.

     

    O. “Related Leasehold Property”
--  Leasehold improvements and all furniture, fixtures and equipment
owned by IGP and currently located in its central offices and/or in any of the
Project Partnerships’ properties except for Excluded Assets.

     

    P.  “Project Partnership” -- any of
the limited partnerships identified on Schedule 1(O)
attached hereto (collectively referred to in this Agreement as the “Project
Partnerships”).

     

    Q.  “Subject
Properties” -- the properties owned by the Project Partnerships as of the
date of this Agreement described on Schedule 1(P)
attached hereto (individually referred to in this Agreement as a “Subject
Property”).

     

    2. PARTNERSHIP
INTERESTS, MANAGEMENT AGREEMENTS AND EXCLUDED ASSETS AND LIABILITIES, USE OF
“INTERSTATE”

     

    A. Seller
agrees to sell, transfer and assign to Purchaser, and Purchaser agrees to
purchase and have assigned to it, the Partnership Interests together with all of
the interest of Seller in all IGP Assets (the Partnership Interests and the IGP
Assets are collectively referred to as the “Assigned
Interests”).

     

    B. Prior to
the Closing, the Excluded Assets and Ineligible Liabilities will be distributed
by IGP to its partners, American Land and IGP Group, and shall not be a part of
the transactions that are the subject of this Agreement.

     

    C. Purchaser
shall be allowed to continue using the word “Interstate” as part of its
corporate or organizational charter, but shall refrain from using such word,
alone or together with other modifying words, terms, designs, or symbols in
advertising or press releases or in connection with the sale of promotion of its
services or business, or in any other manner not expressly authorized in writing
by Seller, except as otherwise required to comply with any Legal
Requirement.  Seller will retain the IGP Group name and shall be
allowed to continue to trade under that name.

     

    3. PURCHASE
PRICE

     

    A. The
purchase price (“Purchase
Price”) for the Assigned Interests shall be Fourteen Million Three
Hundred Thousand Dollars ($14,300,000).  Payment of the Purchase Price
shall be the responsibility of Purchaser; however, Seller acknowledges that
Purchaser intends to have $300,000 of such Purchase Price paid to Seller by
Partners Services Inc.(“PSI”), a related entity of
Purchaser.

     

    4. DEPOSIT

     

    Purchaser,
immediately upon execution by Seller of this Agreement, shall deposit into an
escrow account Fifty Thousand Dollars ($50,000) (the “Deposit”) for the acquisition
of the Assigned Interests, which will become nonrefundable (except if the
Closing does not occur due to any breach of this Agreement by Seller) by the end
of the Due Diligence Period as defined in Section 5 hereof.  The
Deposit shall be maintained in an interest-bearing account with an FDIC-insured
commercial bank in Puerto Rico.  Interest shall accrue to the benefit
of Purchaser and the full amount of the Deposit, plus interest thereon, shall be
applied to the payment of the Purchase Price at Closing.  If Purchaser
wrongfully fails to close in accordance with the terms of this Agreement, the
Deposit (less interest thereon, which shall be returned to Purchaser) shall be
delivered by the bank to Seller as full and liquidated damages.  If
Seller wrongfully fails to close in accordance with the terms of this Agreement,
the entire Deposit, including interest thereon, shall be returned by the bank to
Purchaser and Seller shall reimburse to Purchaser, upon demand, all legal and
professional services expenses incurred in connection with this purchase
transaction.

     

    5. DUE
DILIGENCE

     

    A. The due
diligence period (“Due
Diligence Period”) shall be for a period of sixty days (60) commencing on
the date of the execution of this Agreement by both parties.  If the
results of this due diligence investigation are unsatisfactory to Purchaser, in
its sole determination, then Purchaser will have the option to terminate this
Agreement on or before the expiration of the Due Diligence Period and the
Deposit shall be returned to Purchaser.

     

    B. During
the Due Diligence Period, Purchaser, its attorneys and other representatives,
shall have the right to inspect any and all relevant documents and information
related to the Partnership Interests, IGP and the IGP Assets, including but not
limited to: (i) all of IGP’s financial statements, contracts, books, records and
other documents, including but not limited to all such documents maintained by
or for IGP with respect to any of the Project Partnerships’ properties and other
properties managed under the Management Agreements and the operation thereof;
(ii) all of the HUD reports on the management and operation of such properties;
and (iii) all other documents in the possession of Seller relating to IGP and/or
the Project Partnerships, the Subject Properties and the Management Agreements
properties (excluding, however, any internal organizational or financial
documents of Seller not related to the assets, liabilities or contracts of IGP,
the Project Partnerships and/or Management Agreements) at such place or places
as such books, records and documents are maintained.

     

    C. Purchaser,
at its cost, shall also have the right to make physical inspections of all the
properties managed by IGP pursuant to Management Agreements.

     

    D. By
written notice delivered to Seller at least five (5) business days prior to the
expiration of the Due Diligence Period, Purchaser shall have the one-time right
to extend the Due Diligence Period for an additional period of fifteen (15)
days, should it have not been able to complete the due diligence
process.

     

    6. OTHER
TRANSACTION TERMS AND CONDITIONS

     

    A. During
the Due Diligence Period, Seller and Purchaser shall enter into mutually
satisfactory arrangements for the payment of the amounts owed by Valle del Sol
Associates Limited Partnership ($928,045) and Turabo Limited Dividend
Partnership ($46,000) to Seller, which are payable only by proceeds from (i)
mortgage refinancing, (ii) partial condemnation, (iii) sale of easements or
similar interest, or (iv) proceeds from the sale of any Subject
Property.

     

    B. Except
for the distributions to be made to Seller and the limited partners of the
Project Partnerships regarding the 2008 operations (it being understood that
such distributions shall be reviewed by Purchaser during the Due Diligence
Period), no additional distribution of dividends or partnership profits or
earned revenues shall be made by the Project Partnerships to American Land, IGP
Group and/or ACPT.  It is understood by both parties that the
Monserrate Associates, LP Subject Property is to be refinanced on or before
April 30, 2009, when its loan amount matures.  Both parties agree that
all refinancing proceeds to be collected by IGP as General Partner and Limited
Partner, shall be distributable to Purchaser only and that Seller shall not be
entitled to any of such proceeds.

     

    C. Seller
will be responsible for all Ineligible Liabilities, the complete description of
which shall be agreed upon in writing by the parties during the Due Diligence
Period.

     

    D. Seller
shall receive all uncollected management fees due pursuant to the Management
Agreements until the Closing Date.  Seller also shall receive the
accrued incentive fee earned pursuant to the Management Agreements until the
Closing Date.  Such payment or payments will be made, according to the
partnership agreements of the Project Partnerships and the Management Agreement
for the Subject Properties, at the time the Project Partnerships make the cash
distributions to the partners on March 31, 2010.

     

    E. Purchaser
shall receive the refinancing fee related to Monserrate Associates, LP from the
refinancing proceeds of the realty.

     

    F. Purchaser
shall cause PSI to assume the existing lease of IGP with Escorial Office
Building I until the expiration of the current term of such
lease.  The form of such lease assumption shall be agreed upon during
the Due Diligence Period.

     

    7. APPROVALS
AND CONSENTS

     

    A. During
the four (4) month period following the Effective Date (the “Required Approval
Delivery Period”), Seller shall cooperate with Purchaser in providing all
necessary notices and take all appropriate actions to obtain the required
consents or approvals from (i) HUD, including the “2530” clearances, (ii)
existing lenders on the Subject Properties, (iii) applicable Governmental
Bodies, and (iv) limited partners in the Project Partnerships (collectively, the
“Required
Approvals”).  Purchaser and Seller agree that should the
lenders charge a transfer fee, a fee of 1% of the then outstanding principal
balance of each loan shall be acceptable and Seller and Purchaser shall share
equally in the cost of such transfer fees.  However, in the event a
lender requires a transfer fee in excess of 1%, Seller and Purchaser shall
attempt to reach an agreement as to the allocation of the amount in excess of 1%
and if no agreement is reached within a ten (10) day period, Purchaser may
terminate this Agreement, and Purchaser shall have full refund of the
Deposit.  By written notice delivered to Seller at least five (5)
business days prior to the expiration of the Required Approval Delivery Period,
Purchaser may extend the Required Approval Delivery Period for a period not to
exceed an additional thirty (30) days if such required approvals have been
requested from the appropriate parties but not yet obtained.  All
Required Approvals are set forth on Schedule 7(A)
attached hereto.

     

    8. REPRESENTATIONS
AND WARRANTIES REGARDING AUTHORITY

     

    A. ACPT’s
Authority.  ACPT hereby represents and warrants to Purchaser as
of the date of this Agreement and as of the Closing Date that this Agreement has
been duly authorized, executed and delivered by ACPT and all consents required
under ACPT’s Organizational Documents have been obtained.  All
documents that are to be executed by ACPT and delivered to Purchaser on the
Closing Date have been, or on the Closing Date will be, duly executed,
authorized and delivered by ACPT.  This Agreement and all such
documents are, and on the Closing Date will be, legal, valid and binding
obligations of ACPT, enforceable in accordance with their terms and do not, and,
at the time of the Closing Date will not, violate any provisions of any
agreement or judicial or administrative order to which ACPT is a party or to
which ACPT is subject.

     

    B. American Land’s
Authority.  American Land hereby represents and warrants to
Purchaser as of the date of this Agreement and as of the Closing Date that this
Agreement has been duly authorized, executed and delivered by American Land and
all consents required under American Land’s Organizational Documents have been
obtained.  All documents that are to be executed by American Land and
delivered to Purchaser on the Closing Date have been, or on the Closing Date
will be, duly executed, authorized and delivered by American
Land.  This Agreement and all such documents are, and on the Closing
Date will be, legal, valid and binding obligations of American Land, enforceable
in accordance with their terms and do not, and, at the time of the Closing Date
will not, violate any provisions of any agreement or judicial or administrative
order to which American Land is a party or to which American Land is
subject.

     

    C. IGP Group’s
Authority.  IGP Group hereby represents and warrants to
Purchaser as of the date of this Agreement and as of the Closing Date that this
Agreement has been duly authorized, executed and delivered by IGP Group and all
consents required under IGP Group’s Organizational Documents have been
obtained.  All documents that are to be executed by IGP Group and
delivered to Purchaser on the Closing Date have been, or on the Closing Date
will be, duly executed, authorized and delivered by IGP Group.  This
Agreement and all such documents are, and on the Closing Date will be, legal,
valid and binding obligations of IGP Group, enforceable in accordance with their
terms and do not, and, at the time of the Closing Date will not, violate any
provisions of any agreement or judicial or administrative order to which IGP
Group is a party or to which IGP Group is subject.

     

    D. Purchaser’s
Authority.  Purchaser hereby represents and warrants to Seller
as of the date of this Agreement and as of the Closing Date that this Agreement
has been duly authorized, executed and delivered by Purchaser and all consents
required under Purchaser’s Organizational Documents or by law have been
obtained.  All documents that are to be executed by Purchaser and
delivered to Seller on the Closing Date have been, or on the Closing Date will
be, duly executed, authorized and delivered by Purchaser.  This
Agreement and all such documents are, and on the Closing Date will be, legal,
valid and binding obligations of Purchaser, enforceable in accordance with their
terms and do not, and, at the time of the Closing Date will not, violate any
provisions of any agreement or judicial or administrative order to which
Purchaser is a party or to which Purchaser is subject.

     

    9. REPRESENTATIONS
AND WARRANTIES.

     

    A. Organization and Ownership
of Project Partnerships.

     

    
      	
              (i)  

            	
              Alturas del Senorial
      Associates Limited Partnership (“Alturas
      del Senorial”)  Seller
      hereby represents and warrants that Alturas del Senorial is a limited
      partnership validly existing and in good standing under the laws of the
      Commonwealth of Puerto Rico with full power and authority and legal right
      to enter into and perform its obligations under this Agreement, the
      Closing Documents to which it is a party and to carry on its business in
      the manner and in the locations in which such business has been and is now
      being conducted by it.  Schedule 9(A)
      lists all of the direct and indirect owners of partnership interests in
      Alturas del Senorial del Senorial and states the nature of the direct or
      indirect ownership interest of each.  The Organizational
      Documents of Alturas del Senorial submitted to Purchaser are true,
      complete and accurate and have not been terminated, modified or amended
      and are in full force and effect.  None of IGP’s interests in
      Alturas del Senorial is subject to liens or
  encumbrances.

            

    

     

    
      	
              (ii)  

            	
              Bayamon Garden
      Associates Limited Partnership (“Bayamon”)  Seller
      hereby represents and warrants that Bayamon is a limited partnership
      validly existing and in good standing under the laws of the Commonwealth
      of Puerto Rico with full power and authority and legal right to enter into
      and perform its obligations under this Agreement, the Closing Documents to
      which it is a party and to carry on its business in the manner and in the
      locations in which such business has been and is now being conducted by
      it.  Schedule 9(A)
      lists all of the direct and indirect owners of partnership interests in
      Bayamon and states the nature of the direct or indirect ownership interest
      of each.  The Organizational Documents of Bayamon submitted to
      Purchaser are true, complete and accurate and have not been terminated,
      modified or amended and are in full force and effect.  None of
      IGP’s interests in Bayamon is subject to liens or
      encumbrances.

            

    

     

    
      	
              (iii)  

            	
              Carolina Associates
      Limited Partnership (“Carolina”)  Seller
      hereby represents and warrants that Carolina is a limited partnership
      validly existing and in good standing under the laws of the Commonwealth
      of Puerto Rico with full power and authority and legal right to enter into
      and perform its obligations under this Agreement, the Closing Documents to
      which it is a party and to carry on its business in the manner and in the
      locations in which such business has been and is now being conducted by
      it.  Schedule 9(A)
      lists all of the direct and indirect owners of partnership interests in
      Carolina and states the nature of the direct or indirect ownership
      interest of each.  The Organizational Documents of Carolina
      submitted to Purchaser are true, complete and accurate and have not been
      terminated, modified or amended and are in full force and
      effect.  None of IGP’s interests in Carolina is subject to liens
      or encumbrances.

            

    

     

    
      	
              (iv)  

            	
              Colinas de San Juan
      Associates Limited Partnership (“Colinas
      de San Juan”)  Seller
      hereby represents and warrants that Colinas de San Juan is a limited
      partnership validly existing and in good standing under the laws of the
      Commonwealth of Puerto Rico with full power and authority and legal right
      to enter into and perform its obligations under this Agreement, the
      Closing Documents to which it is a party and to carry on its business in
      the manner and in the locations in which such business has been and is now
      being conducted by it.  Schedule 9(A)
      lists all of the direct and indirect owners of partnership interests in
      Colinas de San Juan and states the nature of the direct or indirect
      ownership interest of each.  The Organizational Documents of
      Colinas de San Juan submitted to Purchaser are true, complete and accurate
      and have not been terminated, modified or amended and are in full force
      and effect.  None of IGP’s interests in Colinas de San Juan is
      subject to liens or encumbrances.

            

    

     

    
      	
              (v)  

            	
              Monserrate Associates
      Limited Partnership (“Monserrate”)  Seller
      hereby represents and warrants that Monserrate is a limited partnership
      validly existing and in good standing under the laws of the Commonwealth
      of Puerto Rico with full power and authority and legal right to enter into
      and perform its obligations under this Agreement, the Closing Documents to
      which it is a party and to carry on its business in the manner and in the
      locations in which such business has been and is now being conducted by
      it.  Schedule 9(A)
      lists all of the direct and indirect owners of partnership interests in
      Monserrate and states the nature of the direct or indirect ownership
      interest of each.  The Organizational Documents of Monserrate
      submitted to Purchaser are true, complete and accurate and have not been
      terminated, modified or amended and are in full force and
      effect.  None of IGP’s interests in Monserrate is subject to
      liens or encumbrances.

            

    

     

    
      	
              (vi)  

            	
              San Anton Associates
      S.E. (“San
      Anton”)  Seller
      hereby represents and warrants that San Anton is a limited partnership
      validly existing and in good standing under the laws of the Commonwealth
      of Puerto Rico with full power and authority and legal right to enter into
      and perform its obligations under this Agreement, the Closing Documents to
      which it is a party and to carry on its business in the manner and in the
      locations in which such business has been and is now being conducted by
      it.  Schedule 9(A)
      lists all of the direct and indirect owners of partnership interests in
      San Anton and states the nature of the direct or indirect ownership
      interest of each.  The Organizational Documents of San Anton
      submitted to Purchaser are true, complete and accurate and have not been
      terminated, modified or amended and are in full force and
      effect.  None of IGP’s interests in San Anton is subject to
      liens or encumbrances.

            

    

     

    
      	
              (vii)  

            	
              Jardines de Caparra
      Associates Limited Partnership (“Jardines
      de Caparra”)  Seller
      hereby represents and warrants that Jardines de Caparra is a limited
      partnership validly existing and in good standing under the laws of the
      Commonwealth of Puerto Rico  with full power and authority and
      legal right to enter into and perform its obligations under this
      Agreement, the Closing Documents to which it is a party and to carry on
      its business in the manner and in the locations in which such business has
      been and is now being conducted by it.  Schedule 9(A)
      lists all of the direct and indirect owners of partnership interests in
      Jardines de Caparra and states the nature of the direct or indirect
      ownership interest of each.  The Organizational Documents of
      Jardines de Caparra submitted to Purchaser are true, complete and accurate
      and have not been terminated, modified or amended and are in full force
      and effect.  None of IGP’s interests in Jardines de Caparra is
      subject to liens or encumbrances.

            

    

     

    
      	
              (viii)  

            	
              Turabo Limited
      Dividend Partnership (“Turabo”)  Seller
      hereby represents and warrants that Turabo is a limited partnership
      validly existing and in good standing under the laws of the Commonwealth
      of Puerto Rico with full power and authority and legal right to enter into
      and perform its obligations under this Agreement, the Closing Documents to
      which it is a party and to carry on its business in the manner and in the
      locations in which such business has been and is now being conducted by
      it.  Schedule 9(A)
      lists all of the direct and indirect owners of partnership interests in
      Turabo and states the nature of the direct or indirect ownership interest
      of each.  The Organizational Documents of Turabo submitted to
      Purchaser are true, complete and accurate and have not been terminated,
      modified or amended and are in full force and effect.  None of
      IGP’s interests in Turabo is subject to liens or
    encumbrances.

            

    

     

    
      	
              (ix)  

            	
              Valle del Sol
      Associates Limited Partnership (“Valle
      del Sol”)  Seller
      hereby represents and warrants that Valle del Sol is a limited partnership
      validly existing and in good standing under the laws of the Commonwealth
      of Puerto Rico with full power and authority and legal right to enter into
      and perform its obligations under this Agreement, the Closing Documents to
      which it is a party and to carry on its business in the manner and in the
      locations in which such business has been and is now being conducted by
      it.  Schedule 9(A)
      lists all of the direct and indirect owners of partnership interests in
      Valle del Sol and states the nature of the direct or indirect ownership
      interest of each.  The Organizational Documents of Valle del Sol
      submitted to Purchaser are true, complete and accurate and have not been
      terminated, modified or amended and are in full force and
      effect.  None of IGP’s interests in Valle del Sol is subject to
      liens or encumbrances.

            

    

     

    B. Consents and Approvals for
Project Partnerships.

     

    
      	
              (i)  

            	
              Alturas del Senorial
      Associates Limited Partnership Seller, except for the Required
      Approvals identified in Schedule 7(A)
      attached hereto, hereby represents and warrants that there are no
      consents, approvals or waivers of any other third party required for the
      consummation of the transactions contemplated by this
      Agreement.  This Agreement and the Closing Documents do not
      violate or conflict with and will not constitute a default under any
      provision of any agreement, organizational document, law or judicial or
      other governmental order to which Alturas del Senorial is a party or to
      which Alturas del Senorial or its Property is subject, will not result in
      the imposition of any lien or charge upon any asset of Alturas del
      Senorial and will not result in the acceleration of any obligation under
      the terms of any agreement or document binding upon Alturas del
      Senorial.

            

    

     

    
      	
              (ii)  

            	
              Bayamon Garden
      Associates Limited Partnership Seller, except for the Required
      Approvals identified in Schedule 7(A)
      attached hereto, hereby represents and warrants that there are no
      consents, approvals or waivers of any other third party required for the
      consummation of the transactions contemplated by this
      Agreement.  This Agreement and the Closing Documents do not
      violate or conflict with and will not constitute a default under any
      provision of any agreement, organizational document, law or judicial or
      other governmental order to which Bayamon is a party or to which Bayamon
      or its Property is subject, will not result in the imposition of any lien
      or charge upon any asset of Bayamon and will not result in the
      acceleration of any obligation under the terms of any agreement or
      document binding upon Bayamon.

            

    

     

    
      	
              (iii)  

            	
              Carolina Associates
      Limited Partnership Seller, except for the Required Approvals
      identified in Schedule 7(A)
      attached hereto, hereby represents and warrants that there are no
      consents, approvals or waivers of any other third party required for the
      consummation of the transactions contemplated by this
      Agreement.  This Agreement and the Closing Documents do not
      violate or conflict with and will not constitute a default under any
      provision of any agreement, organizational document, law or judicial or
      other governmental order to which Carolina is a party or to which Carolina
      or its Property is subject, will not result in the imposition of any lien
      or charge upon any asset of Carolina and will not result in the
      acceleration of any obligation under the terms of any agreement or
      document binding upon Carolina.

            

    

     

    
      	
              (iv)  

            	
              Colinas de San Juan
      Assoicates Limited Partnership Seller, except for the Required
      Approvals identified in Schedule 7(A)
      attached hereto, hereby represents and warrants that there are no
      consents, approvals or waivers of any other third party required for the
      consummation of the transactions contemplated by this
      Agreement.  This Agreement and the Closing Documents do not
      violate or conflict with and will not constitute a default under any
      provision of any agreement, organizational document, law or judicial or
      other governmental order to which Colinas de San Juan is a party or to
      which Colinas de San Juan or its Property is subject, will not result in
      the imposition of any lien or charge upon any asset of Colinas de San Juan
      and will not result in the acceleration of any obligation under the terms
      of any agreement or document binding upon Colinas de San
    Juan.

            

    

     

    
      	
              (v)  

            	
              Monserrate Associates
      Limited Partnership Seller, except for the Required Approvals
      identified in Schedule 7(A)
      attached hereto, hereby represents and warrants that there are no
      consents, approvals or waivers of any other third party required for the
      consummation of the transactions contemplated by this
      Agreement.  This Agreement and the Closing Documents do not
      violate or conflict with and will not constitute a default under any
      provision of any agreement, organizational document, law or judicial or
      other governmental order to which Monserrate is a party or to which
      Monserrate or its Property is subject, will not result in the imposition
      of any lien or charge upon any asset of Monserrate and will not result in
      the acceleration of any obligation under the terms of any agreement or
      document binding upon Monserrate.

            

    

     

    
      	
              (vi)  

            	
              San Anton Associates
      S.E. Limited Partnership Seller, except for the Required Approvals
      identified in Schedule 7(A)
      attached hereto, hereby represents and warrants that there are no
      consents, approvals or waivers of any other third party required for the
      consummation of the transactions contemplated by this
      Agreement.  This Agreement and the Closing Documents do not
      violate or conflict with and will not constitute a default under any
      provision of any agreement, organizational document, law or judicial or
      other governmental order to which San Anton is a party or to which San
      Anton or its Property is subject, will not result in the imposition of any
      lien or charge upon any asset of San Anton and will not result in the
      acceleration of any obligation under the terms of any agreement or
      document binding upon San Anton.

            

    

     

    
      	
              (vii)  

            	
              Jardines de Caparra
      Associates Limited Partnership Seller, except for the Required
      Approvals identified in Schedule 7(A)
      attached hereto, hereby represents and warrants that there are no
      consents, approvals or waivers of any other third party required for the
      consummation of the transactions contemplated by this
      Agreement.  This Agreement and the Closing Documents do not
      violate or conflict with and will not constitute a default under any
      provision of any agreement, organizational document, law or judicial or
      other governmental order to which Jardines de Caparra is a party or to
      which Jardines de Caparra or its Property is subject, will not result in
      the imposition of any lien or charge upon any asset of Jardines de Caparra
      and will not result in the acceleration of any obligation under the terms
      of any agreement or document binding upon Jardines de
    Caparra.

            

    

     

    
      	
              (viii)  

            	
              Turabo Limited
      Divident Partnership Seller, except for the Required Approvals
      identified in Schedule 7(A)
      attached hereto, hereby represents and warrants that there are no
      consents, approvals or waivers of any other third party required for the
      consummation of the transactions contemplated by this
      Agreement.  This Agreement and the Closing Documents do not
      violate or conflict with and will not constitute a default under any
      provision of any agreement, organizational document, law or judicial or
      other governmental order to which Turabo is a party or to which Turabo or
      its Property is subject, will not result in the imposition of any lien or
      charge upon any asset of Turabo and will not result in the acceleration of
      any obligation under the terms of any agreement or document binding upon
      Turabo.

            

    

     

    
      	
              (ix)  

            	
              Valle del Sol
      Associates Limited Partnership Seller, except for the Required
      Approvals identified in Schedule 7(A)
      attached hereto, hereby represents and warrants that there are no
      consents, approvals or waivers of any other third party required for the
      consummation of the transactions contemplated by this
      Agreement.  This Agreement and the Closing Documents do not
      violate or conflict with and will not constitute a default under any
      provision of any agreement, organizational document, law or judicial or
      other governmental order to which Valle del Sol is a party or to which
      Valle del Sol or its Property is subject, will not result in the
      imposition of any lien or charge upon any asset of Valle del Sol and will
      not result in the acceleration of any obligation under the terms of any
      agreement or document binding upon Valle del
  Sol.

            

    

     

    C. Representations and
Warranties regarding IGP

     

    
      	
              (i)  

            	
              Litigation.  Seller
      hereby represents and warrants, to the best of its knowledge, that except
      as described in Schedule
      9(C)(i) attached hereto, there are no legal actions, suits or
      proceedings (including arbitration proceedings) at law or in equity before
      or by any federal, state, municipal court or other governmental
      department, commission, board, bureau, agency or instrumentality, which
      are pending or threatened in writing against IGP that could have a
      material adverse effect on IGP.

            

    

     

    
      	
              (ii)  

            	
              Financials.  Seller
      hereby represents and warrants that the financial statements of IGP listed
      on Schedule
      9(C)(ii) attached hereto are true, accurate and complete in all
      material respects and there has been no material adverse change in such
      information since the date of the most recent financials.  Each
      such financial statement fairly represents the financial condition of the
      subject thereof in all material respects and, if an audited financial
      statement, has been prepared in accordance with generally accepted
      accounting practices.

            

    

     

    
      	
              (iii)  

            	
              Anti-Terrorism.  Seller
      hereby represents and warrants that neither ACPT, American Land, IGP
      Group, IGP, nor any underlying beneficial owner has engaged in any
      dealings or transactions, directly or indirectly, (i) in contravention of
      any United States, international or other money laundering regulations or
      conventions, including, without limitation, the United States Bank Secrecy
      Act, the United States Money Laundering Control Act of 1986, the United
      States International Money Laundering Abatement and Anti-Terrorist
      Financing Act of 2001, Trading with the Enemy Act (50 U.S.C. §1 et seq.,
      as amended), or any foreign asset control regulations of the United States
      Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any
      enabling legislation or executive order relating thereto, or (ii) in
      contravention of Executive Order No. 13,244,66 Fed. Reg. 49,079 (2001)
      issued by the President of the United States (Executive Order Blocking
      Property and Prohibiting Transactions with Persons Who Commit, Threaten to
      Commit, or Support Terrorism), as may be amended or supplemented from time
      to time (“Anti-Terrorism
      Order”) or on behalf of terrorists or terrorist organizations,
      including those persons or entities that are included on any relevant
      lists maintained by the United Nations, North Atlantic Treaty
      Organization, Organization of Economic Cooperation and Development,
      Financial Action Task Force, U.S. Office of Foreign Assets Control, U.S.
      Securities & Exchange Commission, U.S. Federal Bureau of
      Investigation, U.S. Central Intelligence Agency, U.S. Internal Revenue
      Service, or any country or organization, all as may be amended from time
      to time, nor are any of them or their underlying beneficial owners a
      person described in Section 1 of the Anti-Terrorism Order and none of
      them, nor any of their underlying beneficial owners have engaged in any
      dealings or transactions, or otherwise been associated with any such
      person.

            

    

     

    
      	
              (iv)  

            	
              Undisclosed
      Liabilities.  To the best of its knowledge, Seller hereby
      represents and warrants that IGP has no material liabilities or
      obligations of any nature whether accrued, absolute, contingent or
      otherwise other than as disclosed in this
  Agreement.

            

    

     

    
      	
              (v)  

            	
              Taxes.  Seller
      hereby represents and warrants that all taxes, governmental levies or
      assessments which are owed by IGP have been paid to the extent due and
      payable.  All allocations and distributions and tax reporting by
      IGP prior to the date hereof have been done or made in accordance with the
      terms and provisions of the Organizational Documents of IGP and the
      Internal Revenue Code.

            

    

     

    
       

    

    10. PROPERTY
REPRESENTATIONS AND WARRANTIES.

     

    Seller
hereby represents and warrants to Purchaser as of the date of this Agreement as
follows:

     

    A. Condemnation and
Actions.  Except as may be disclosed in Schedule 10(A)
hereto, there are no pending condemnation, zoning, environmental or land use
regulation proceedings against or related to any Subject Property or any portion
thereof, nor have they received any written notice of any being
contemplated.

     

    B. Compliance with Title
Encumbrances.  Except as may be disclosed in Schedule 10(B)
hereto, there are no material defaults by any Project Partnership under any of
the covenants, easements or restrictions encumbering any Subject Property or any
portion thereof.

     

    C. Violation
Notices.  Except as set forth in Schedule 10(C)
attached hereto, no party hereto has received any notice from any governmental
authority of any failure of any Subject Property to comply with any zoning,
building, environmental, ecology, health and public safety, subdivision, land
sales or similar law, rule, ordinance or regulation, pertaining to any Subject
Property or any portion thereof.  No consent or approval is required
from any Governmental Body for any Project Partnership to own or operate or
develop any Subject Property, as the same is currently operated, developed and
used, except those which have been obtained, all of which are in full force and
effect.  No governmental, fire, life safety or other inspection is
required in connection with the transactions contemplated by the
Agreement.  No new certificates of occupancy are required to be issued
in connection with the transfer of any Subject Property to
Purchaser.

     

    D. Permits and
Licenses.  To the best of Seller’s knowledge, the existing
licenses, permits or other approvals required for the construction, ownership,
use, development and operation of the existing improvements of any Subject
Property have each been validly issued by the appropriate authority and are in
full force and effect and constitute all of the licenses, permits and approvals
required for the ownership, operation, development and sale of any Subject
Property as contemplated.

     

    E. Brokers.  Except
as set forth on Schedule 10(E), as of
the date of this Agreement, there are no written agreements with any real estate
broker, leasing agent or other party (including, without limitation, the current
manager of any Subject Property), that entitles or will entitle such real estate
broker, agent or other party to any leasing, sales or other brokerage commission
or payment or finder’s fee for which Seller or Purchaser is responsible related
to the sale or leasing of any portion of any Subject Property.

     

    F. Environmental
Compliance.  To the best of Seller’s knowledge, no Project
Partnership has generated, stored or disposed of any oil, petroleum products or
“Hazardous Materials”, as defined under Puerto Rico or United States laws or
regulations (collectively, “Hazardous Materials”) at any
Subject Property or the improvements located thereon and, except as disclosed
in. reports listed on Schedule 10(F),
Seller has no knowledge of any previous or present generation, storage, disposal
or existence thereof.  A list of all environmental reports of which
Seller has knowledge is set forth in Schedule 10(F)
attached hereto.  Except as may be disclosed in those environmental
reports listed on Schedule 10(F), (i)
no Project Partnership has entered into any consent decree or administrative
order for any alleged violation of laws relating to so-called Hazardous
Materials; (ii) no Project Partnership has received any written request for
information or a demand letter from a citizen with respect to a violation of
laws pertaining to Hazardous Materials; and (iii) to the knowledge and belief of
Seller, no contractor or other party has generated, stored or disposed of any
Hazardous Materials at any Subject Property or transported any Hazardous
Materials off site from any Subject Property except in accordance with
applicable law.

     

    G. Special
Assessments.  To the best of their knowledge, there are no
unpaid special assessments filed, pending or proposed against any Subject
Property or any portion thereof including, without limitation, any street
improvement or special district assessments.

     

    H. Title.  Other
than this Agreement, there are no unrecorded purchase agreements, option
agreements, rights of first refusal, conditional sales contracts, or other title
retention agreements which affect any Subject Property.

     

    I. Zoning and
Use.  Seller has not received written notice from any
governmental authority that any Subject Property is not in compliance with or
violates applicable environmental building and zoning laws, rules or regulations
or governmental rules or regulations.

     

    J. No
Litigation.  Except as specifically disclosed on Schedule 10(J), there
are no pending or, to the best of Seller’s knowledge, threatened, claims,
allegations or lawsuits of any kind, whether for personal injury, property
damage, landlord-tenant disputes, property taxes or otherwise, that could
materially and adversely affect the operation or value of any Subject Property,
nor to the best of Seller’s knowledge, is there any governmental investigation
of any type or nature pending or threatened against or relating to any Subject
Property or the transactions contemplated hereby.

    
       

    

    K. Insurance
Indemnifications.  Seller has not received notices by any
insurance company which has issued a policy with respect to any portion of any
Subject Property, or by any board of fire underwriters, or from any governmental
authority, of zoning, building, fire or health code violations in respect to any
Subject Property.

     

    L. Rent
Roll.  The Rent Rolls delivered to Purchaser contain a complete
and correct list of all Leases.  Except as set forth in the Rent
Rolls, each Lease is valid and existing and in full force and effect, has not
been amended, modified or supplemented, and the tenant, licensee or occupant
thereunder is in actual possession.  Except as set forth in the Rent
Rolls, there are no defaults under any of the Leases, nor have events occurred
which with notice or the passage of time, or both, would constitute a default
thereunder.  Seller has not made any previous assignment, transfer or
other disposition of all or any part of its interest in any of the
Leases.

     

    M. Rental
Concessions.  Except as set forth on the Rent Rolls, no tenant,
under any of the Leases is, or as of the Closing will be, entitled to any free
rent, concessions, allowances, rebates or refunds and no tenant under any of the
Leases has, or as of the Closing will have, prepaid any rent or other charges
for more than one month in advance.

     

    N. Management
Contracts.  The Management Contracts are in full force and
effect, and there are no written or oral agreements or understandings relating
to the management of any Subject Property other than the Management
Contracts.  The Management Contracts are all in full force and effect
and there are no uncured defaults and there exists no condition that, with
notice, the passage of time, or both, would constitute an event of default by
any party under the Management Contracts.

     

    O. Housing Assistance Payments
Contracts/Regulatory Agreements.  Other than the Housing
Assistance Payments Contracts (“HAP”) and Regulatory
Agreements affecting any Subject Property, and there are no written or oral
agreements or understandings relating thereto.  The HAP and Regulatory
Agreements are all in full force and effect, there are no uncured defaults
thereunder, and there exists no condition that with notice, the passage of time,
or both, would constitute an event of default by any party under the HAP or the
Regulatory Agreements.

     

    P. Existing
Indebtedness.  There are no written or oral agreements,
understandings or commitments relating to the Existing Indebtedness other than
as set forth in the existing loan documents.  There is no uncured
default by Seller or, to the best of Seller’s knowledge, any lender under the
Existing Indebtedness and no event has occurred which with notice, the passage
of time, or both, would constitute an event of default by Seller or, to the best
of Seller’s knowledge, any lender under the Existing Indebtedness.

     

    11. SURVIVAL
OF REPRESENTATIONS AND WARRANTIES

     

    A. All
representations and warranties provided herein may be relied upon by Purchaser
and shall survive the acquisition of the closing of the acquisition by Purchaser
of the Assigned Interests for a period of four (4) years (the “Survival
Period”).  The remedies for a breach of such representations shall
have a cumulative minimum claim of Fifty Thousand Dollars ($50,000) and shall in
no event exceed Five Hundred Thousand Dollars ($500,000).  Seller
shall indemnify Purchaser for any claims related to (i) the Excluded Assets and
Liabilities, (ii) any entities previously owned or controlled by IGP and
disposed of prior to or at Closing, (iii) any assets previously owned or
controlled by IGP directly or indirectly and disposed of prior to or at Closing,
(iii) any assets previously owned or controlled by IGP directly or indirectly
and disposed of prior to the Closing, (iv) any liabilities of IGP unrelated to
the IGP Assets, and (v) any other tax claims from activities of IGP and/or
related entities conducted up to Closing Date.  It is understood and
agreed that there shall be no monetary limit for a breach of representations and
warranties relating to any of the entities (e.g., IGP being acquired by
Purchaser) and such entity representations and warranties shall survive for a
period of four (4) years following Closing.  Seller and Purchaser
agree to place the amount of Two Hundred Fifty Thousand Dollars ($250,000) in an
escrow account held by a mutually agreeable third party with the purpose of
guarantying Seller’s obligations to Purchaser as described above.  The
escrow account shall provide for the annual distribution to Seller of a pro rata
portion of all moneys remaining in the escrow account at the end of such
year.  Purchaser acknowledges that Rafael Velez, Eduardo Cruz and
Marie-Lynne Garcia have detailed  knowledge of the Seller, the Project
Partnerships and the Subject Properties. Therefore, notwithstanding anything to
the contrary contained in this Agreement, except for the representation made
herin above in (i) to (v), no claim may be made by Purchaser for breach of any
representation or other claim if prior to the Closing the facts constituting
such alleged breach or representation were known by Rafael Velez, Eduardo Cruz
and Marie-Lynne Garcia, provided that knowledge shall be deemed actual knowledge
and not any imputed knowledge.

     

    12. ADJUSTMENTS
AT CLOSING

     

    A. All
adjustments between Seller and Purchaser shall be made as of the date of the
Closing.  To the extent applicable, recordation and transfer taxes,
title costs and lender and servicer fees associated with the Closing and other
costs created in connection with the execution of miscellaneous leases and other
agreements will be split 50/50.

    
       

    

    B. No
withdrawals, adjustments, or prorations will be made relating to the purchase of
the Partnership Interest to the account of the Project Partnerships, including
but not limited to, operating cash, restricted cash, replacement reserves,
residual receipt accounts, dept service reserve escrows, tax or insurance
escrows, which shall remain the s of the Project Partnership at
Closing.

     

    13. PUBLICITY

     

    Neither
Seller nor Purchaser shall make any public statement or issue any press release
prior to the Closing with respect to this Agreement or the transactions
contemplated in this Agreement without the prior written consent of the other
party, except as otherwise required by Legal Requirement (including any
Securities and Exchange Commission reporting requirements).

     

    14. CONFIDENTIALITY

     

    Purchaser
and its representatives shall hold in strictest confidence all non-public data
and information obtained from Seller, whether obtained before or after the
execution and delivery of this Agreement.  This Agreement shall
supersede and replace any prior confidentiality agreement between Seller and
Purchaser or any of its affiliates, and any such prior agreement, to the extent
applicable to Purchaser, are hereby terminated and shall be of no further force
and effect.

     

    15. EMPLOYEES

     

    It is
understood by both parties that IGP recently reorganized its work force and as a
result, made employee cuts at various levels of the company.  Seller
agrees that IGP shall not hire additional employees, who shall remain employees
of IGP after Closing and Seller shall bear the termination costs of any employee
terminated prior to Closing.  Purchaser shall retain, through its
related entity PSI, 100% of the employees that are employed by IGP, excluding
however, those employees who work for the excluded entities, as listed in Schedule 15
attached.  PSI shall be responsible for all Legal Requirements
regarding any severance benefit payable to any of the retained employees if such
payment becomes due for reason of unjust dismissal, and PSI shall indemnify
Seller and its Affiliates from and against any liability for such severance
payments.  Seller will be responsible for all Ineligible Liabilities
up to the Closing Date and for all liabilities accrued in IGP’s books as of the
date of the Closing related to such employee expenses, i.e., accrued vacations,
payroll taxes, etc.  The accrued liabilities related to the employees
that will be retained by IGP and/or a related entity after Closing shall have
been paid by Seller at the Closing date.

     

    16. CONDUCT
PRIOR TO CLOSING

     

    A. During
the period commencing on the Effective Date and ending on the Closing Date
(unless this Agreement shall be terminated prior to a Closing), the business and
affairs of IGP and the Project Partnerships will be conducted only in their
ordinary course, and neither IGP nor any of the Project Partnerships must
experience any adverse change in their respective business, properties, aspects
or prospects.  Seller agrees that, without prior written approval of
Purchaser, Seller will not (and will cause or ensure that IGP does
not):

     

    
      	
              (i)  

            	
              enter
      into or modify (except as required by applicable law) any compensation,
      benefit, or other plan, agreement or arrangement (whether written or oral)
      with respect to any of their directors, officers or employees; except
      however, the IGP/Seller can continue with the current negotiations of the
      Union Bargaining Agreement;

            

    

     

    
      	
              (ii)  

            	
              modify
      substantially the manner in which it has heretofore conducted its
      business, either into any new line of business or amend its Partnership
      Agreement;

            

    

     

    
      	
              (iii)  

            	
              dispose
      of or discontinue any of its material business or properties (except for
      the Excluded Assets and Ineligible Liabilities) or merge or consolidate
      with any other entity;

            

    

     

    
      	
              (iv)  

            	
              dispose
      of or acquire any material contracts or material assets, including without
      limitation, intellectual property, except in the ordinary course of
      business;

            

    

     

    
      	
              (v)  

            	
              take
      any other action not in the ordinary course of business;
  or

            

    

     

    
      	
              (vi)  

            	
              agree
      to take any foregoing actions.

            

    

     

    B. From and
after the Effective Date and until the Closing, Purchaser will have the right to
appoint an administrative agent who will work on a day-to-day basis with the
management of IGP to ensure the orderly and timely transition of the operation
of the Project Partnerships and the related Subject Properties to Purchaser at
the Closing.  The administrative agent appointed by Purchaser shall
have continuous access to financial and accounting records of IGP related to the
Project Partners and related Subject Properties.

     

    C. Insurance.  Seller
will keep each Subject Property fully insured against all usual risks and will
maintain in effect all insurance policies now maintained on the same, through
the Closing Date.

     

    D. Performance Under
Leases.  Seller agrees that it will continue to perform all of
its obligations as landlord under all Leases and shall, immediately upon
obtaining knowledge of a material change in facts or circumstances which renders
any information contained on the Rent Rolls inaccurate, promptly notify
Purchaser of said facts or circumstances.

     

    E. Further
Tenancies.  Without the prior written consent of the Purchaser,
none of the Leases will be amended to reduce the rents or other charges
thereunder or will be renewed for rents or other charges which are less than
those payable prior to such renewal (unless permitted under the appropriate HAP
Agreement).

     

    F. Purchaser’s Financing and
Equity Investments.  Purchaser acknowledges that Seller will be
negatively impacted if the Required Approvals are obtained and the Closing does
not occur.  Accordingly, during the time that this Agreement is in
effect, including during the Due Diligence Period, Purchaser shall promptly
inform Seller of any change in the financing or equity investments that will
have, or may reasonably be expected to have, an adverse effect on the funds
needed by Purchaser to consummate the transaction contemplated in this
Agreement.  Further, upon the occurrence of any such change, Purchaser
shall also cease seeking the Required Approvals until and unless Seller
authorizes Purchaser to continue seeking such approvals.

     

    17. CONDITIONS
PRECEDENT

     

    A. Purchaser’s Conditions
Precedent.  Unless waived by Purchaser in its sole and absolute
discretion, Purchaser’s obligations to consummate the transactions contemplated
by this Agreement and proceed to Closing (as hereinafter defined), are expressly
conditioned upon the following:

     

    
      	
              (i)  

            	
              All
      representations and warranties of Seller set forth in this Agreement
      remain materially true and correct;

            

    

     

    
      	
              (ii)  

            	
              There
      is no pending or threatened material claims or litigation involving the
      Partnership Interests or the IGP
Assets;

            

    

     

    
      	
              (iii)  

            	
              Purchaser’s
      lender fails to provide to close on the financing to which such lender
      committed in writing during the Due Diligence Period and such failure is
      not occasioned by any action or inaction within Purchaser’s control;
      and

            

    

     

    
      	
              (iv)  

            	
              All
      Required Approvals have been
obtained.

            

    

     

    
      	
              (v)  

            	
              No
      Material Adverse Effect has
occurred.

            

    

     

    B. Seller’s Conditions
Precedent.  Unless waived by Seller in its sole and absolute
discretion, Seller’s obligations to consummate the transactions contemplated by
this Agreement and proceed to Closing (as hereinafter defined), are expressly
conditioned upon the following:

     

    
      	
              (i)  

            	
              All
      representations and warranties of Purchaser set forth in this Agreement
      remain materially true and correct;
and,

            

    

     

    
      	
              (ii)  

            	
              All
      Required Approvals have been
obtained.

            

    

     

    18. CLOSING

     

    A. Consummation
of the purchase and sale of IGP’s Interests, as contemplated herein (the “Closing”), shall take place at
the offices of Purchaser one week following the end of the Required Approval
Delivery Period (as the same may have been extended) provided that all required
approvals have then been obtained  (the “Closing Date”).

     

    B. At the
Closing, Seller shall deliver to Purchaser (the “Closing
Documents”):

     

    
      	
              (i)  

            	
              Two
      (2) Assignments and Assumptions of Limited Partnership Interests in the
      forms attached hereto as Exhibits A-1 and A-2 and made a part hereof for
      all purposes (collectively, the “Assignment’)
      which Assignment shall have been signed and consented by IGP Group
      Corp and American Land Development in its capacity as the general
      partner of IGP and both as partners
of IGP;

            

    

     

    
      	
              (ii)  

            	
              Any
      and all instruments, consents, and approvals as may be required to
      consummate the transfer contemplated herein, as required under Article 11
      of IGP’s Partnership Agreement;

            

    

     

    
      	
              (iii)  

            	
              Evidence
      reasonably satisfactory to the Purchaser that Seller has the authority to
      consummate the transaction contemplated herein and that the person signing
      on behalf of Seller has the authority to bind
  Seller;

            

    

     

    
      	
              (iv)  

            	
              An
      affidavit pursuant to Section 1445(b)(2) of the Internal Revenue Code that
      Seller is not a “foreign person” or a portion of the Purchase Price shall
      be withheld, as required by law;

            

    

     

    
      	
              (v)  

            	
              Assignment
      and Assumption of Lease for Escorial I Office Building executed by IGP as
      assignor; and,

            

    

     

    
      	
              (vi)  

            	
              Legal
      opinion of Seller’s counsel in form and substance agreed upon by the
      parties during the Due Diligence
Period.

            

    

     

    C. At the
Closing, Purchaser shall deliver to Seller:

     

    
      	
              (i)  

            	
              Payment
      of the Purchase Price in cash or readily available funds net of certain
      costs incurred in the consummation of this transaction, which costs Seller
      has agreed to bear;

            

    

     

    
      	
              (ii)  

            	
              Assignment
      and Assumption of Lease for Escorial I Office Building executed by PSI as
      assignee; and

            

    

     

    
      	
              (iii)  

            	
              The
      Assignment, wherein Purchaser agrees to be bound by the provisions of
      IGP’s Partnership Agreement.

            

    

     

    19. MISCELLANEOUS

     

    A. “As
Is”.  Other than as expressly set forth in this Agreement,
Seller is selling the Partnership Interests in IGP in their “as is” condition
and makes no representation or warranties concerning IGP or the operations and
distributions of IGP or any IGP property or liabilities.

     

    B. No
Reliance.  Purchaser represents that it has sufficient
knowledge concerning IGP and the operations and distributions of IGP and it is
not relying on any representations or warranties by the Seller other than
specifically set forth in this Agreement.

     

    C. Time of
Essence.  Time is of the essence in this
Agreement.

     

    D. Entire
Agreement.  This Agreement constitutes the entire agreement of
the parties.  All understandings and agreements heretofore had between
the parties are merged in this Agreement, which alone fully and completely
expresses their understandings. This Agreement may not be amended, modified,
altered or changed in any respect whatsoever, unless initialed by both Seller
and Purchaser, or by a further agreement in writing, signed by both
parties.

     

    E. Notices.  Any
notices required or permitted hereunder shall be in writing and either hand
delivered, sent by facsimile transmittal, overnight courier or sent United
States mail, postage prepaid, registered or certified mail, return receipt
requested, addressed as follows:

     

    
      	
               
      

            	
              PURCHASER:

            	
              Partners
      Business Equities, LLC

            

    

    Call Box
6030, PMB 343

    Carolina,
PR  00984-6030

    
      	
               
      

            	
              Attention: Rafael
      Velez Rivera

              President

            

    

    Phone:
(787) 743-1866

     

    
      	
               
      

            	
              Seller:

            	
              American
      Community Properties Trust

            

    

    222
Smallwood Village Center

    St.
Charles, Maryland 20602

    Attention:  J.
Michael Wilson

    Chairman

    Phone:  301-870-6622

    Fax:  301-870-6432

    
      
      

      
        

      

    

    
      
      

    

    Any
notices sent by United States mail shall be deemed received, whether or not
actually received, on the second business day after the date on which same is
deposited in an official receptacle for the United States mail. If hand
delivered or sent by facsimile transmittal, overnight courier, said notice shall
be deemed received on the date of actual receipt. Any notices sent by United
States mail shall be deemed received, whether or not actually received, on the
second business day after the date on which same is deposited in an official
receptacle for the United States mail.  If hand delivered or sent by
facsimile transmittal or overnight courier, said notice shall be deemed received
on the date of actual receipt.

     

    F. Puerto Rico Law
Governs.  This Agreement shall be governed, construed and
enforced in accordance with the laws of the Commonwealth of Puerto
Rico.

     

    G. Attorneys
Fees.  In the event this Agreement or any provision hereof
becomes the subject of litigation, venue thereof shall be in the Commonwealth of
Puerto Rico.  The prevailing party in such litigation shall be
entitled to recover from the non-prevailing party all reasonable legal expenses
relating thereto including, but not limited to court costs and reasonable
attorney’s fees and other reasonable fees paid to third parties with respect
thereto.

     

    H. Counterparts.  This
Agreement may be executed in multiple counterparts, each of which shall be
deemed an original.  It will be necessary to account for only one such
counterpart in proving this Agreement.  Signatures to this Agreement
transmitted by telecopy, facsimile or electronic mail will be valid and
effective to bind the party so signing.  Each party agrees to promptly
deliver any execution original of this Agreement with its actual signature to
the other party, but a failure to do so will not affect the enforceability of
this Agreement, it being expressly agreed that each party to this Agreement will
be bound by its own signature sent by telecopy, facsimile or electronic mall and
will accept the signature of the other party so transmitted.

     

    I. Further
Assurances.  The parties hereto agree to cooperate with each
other after the closing of the transactions contemplated in this Agreement and
in the Closing Documents and shall execute and deliver to the other party all
instruments and documents as such other party may deem reasonably necessary in
order to fully carry out the intent and purposes of this Agreement and the
Closing Documents.

     

    J. Permitted
Assigns.  This Agreement may be assigned, in whole, but not in
part, to an entity owned or controlled by Purchaser, with Seller’s consent which
shall not be unreasonably withheld or delayed; provided, however, no such
assignment shall release Purchaser from its obligations hereunder.

     

    K. Exhibits and
Schedules.  The following exhibits and Schedules are attached
hereto and made a part hereof:

     

                             
      Exhibit
A-1                                         
      Assignment and Assumption of Limited Partnership
Interest

     

     
                             
Exhibit
A-2                                        
       Assignment and Assumption of Limited
Partnership Interest

     

    Schedule
1(C)                                          
Excluded Assets

     

    Schedule
1(C-1)                                
      Excluded Leases

     

    Schedule
1(J)                                           Management
Agreements

     

    Schedule
1(L)                                          Partnership
Interests

     

    Schedule
1(O)                                         Project
Partnership

     

    Schedule
1(P)                                    
     Subject Properties

     

    Schedule
7(A)                                  
      Required Approvals

     

    Schedule
9(A)                                    
   Ownership of Project Partnerships

     

    Schedule
9(C)(i)                                     Litigation
re IGP

     

    Schedule
9(C)(ii)                           
        Financial Statements of
IGP

     

    Schedule
10(A)                                     
Condemnation and Actions

     

    Schedule
10(B)                                  
    Title Encumbrance Defaults

     

    Schedule
10(C)                                    
  Violation Notices

     

    Schedule
10(E)                                 
     Brokers

     

    Schedule
10(F)                                 
     Environmental Reports

     

    Schedule
10(J)                                  
    Litigation re Subject Properties

     

    Schedule
15                                       
   Employees Retained by IGP Group

     

    L. Update to
Schedules.  The Seller shall give prompt written notice to
Buyer of (i) the occurrence (including the discovery of facts after the
execution of this Agreement not known as of the date hereof to the disclosing
party) or non-occurrence of any event, the occurrence or non-occurrence of which
would, or would be reasonably likely to, cause, (x) any representation or
warranty contained in Articles 8, 9, or 10 hereof to be untrue or inaccurate in
any material respect or (y) any covenant or agreement contained in this
Agreement not to be complied with in any material respect and (ii) any failure
to satisfy any condition to the consummation of the transactions contemplated by
this Agreement; provided however that the delivery of any notice pursuant to
this Section 19 (I) shall not (x) operate to in any way modify or cure any
breach of the representations and warranties made by the Seller in Article 9
hereof or any exhibits or schedules referred to herein or attached hereto or (y)
limit or otherwise affect the remedies available hereunder to the party
receiving such notice, including the right not to consummate the transactions
contemplated by this Agreement if the matters referred to in the notice would
cause any of the conditions to the receiving party’s obligations not to be
fulfilled.  Within 15 days of the date of this Agreement, the Seller
shall update all of the schedules described in Article 19 (K) as necessary to
make the representations and warranties related to such schedules to be true and
correct in all material respects.  Notwithstanding the foregoing,
Purchaser acknowledges that Rafael Velez, Eduardo Cruz and
Marie-Lynne Garcia have detailed knowledge of the Seller, the Project
Partnerships and the Subject Properties.  Consequently, no failure by
Seller to give notice to Purchaser pursuant to this Section 19.L shall entitle
Purchaser to any remedies against Seller if the facts constituting the basis for
such claim were known by Rafael Velez Eduardo Cruz and Marie-Lynne Garcia;
provided that knowledge shall be deemed actual knowledge and not any
imputed knowledge.

    
      
         

          
             

          

        

      

      
         

        
          

        

      

      
         

      

    

     

        
EXECUTED as of the Effective Date. 

      

      

      

      Seller:                                                                                                      
Seller:

      

      AMERICAN
LAND
DEVELOPMENT                                              AMERICAN
COMMUNITY U.S.,

      INC., a Maryland
Corporation                                                            PROPERTIES TRUST,
a

       Maryland
real estate investment trust

      
 

      

      

      

      By: /s/ J. Michael
Wilson                                                                    By: /s/ J. Michael Wilson

      J.
Michael
Wilson                                                                                 J.
Michael Wilson

      Chairman                                                                                               
Chairman

      

      

      By: /s/ Stephen K.
Griessel                                                                  By: /s/ Stephen K.
Griessel 

      Stephen
K.
Griessel                                                                              Stephen
K. Griessel

      CEO                                                                                                         CEO

      

      

      Seller:

       PURCHASER:

      

      IGP GROUP CORP., a Puerto
Rico                                                
  PARTNERS
BUSINESS

      Corporation                                                                                     
      EQUITIES, LLC a Puerto
Rico

       Limited
Liability Company

      By: /s/ J. Michael
Wilson 

      J.
Michael Wilson

      Chairman

       By:
/s/ Rafael Velez Rivera

                
      Rafael Velez Rivera

      By: /s/ Stephen K.
Griessel                                                          
       President

      Stephen
K. Griessel

      CEO

        
          
            
               

            

             

          

          
             

            
              

            

          

          
             

          

        

      

    

    EXHIBIT
A-1

     

    ASSIGNMENT
AND ASSUMPTION OF LIMITED PARTNERSHIP INTEREST

     

    This
Assignment and Assumption of Limited Partnership Interest (this “Assignment”) is made
and entered into as of March 30, 2009, by and between IGP Group Corp., as
the assignor (the “Assignor”), and PARTNERS BUSINESS EQUITIES,
LLC a Puerto Rico Limited Liability Corporation (the “Assignee”).

     

    WITNESSETH:

     

    WHEREAS,
Assignor is the owner of a one hundred percent (100%) limited partnership
interest in Interstate General Properties Limited Partnership, S.E., a
Maryland limited partnership (the “Partnership”);

     

    WHEREAS,
Assignor desires to convey to Assignee its one hundred of Class A
stock percent (100%) limited partnership interest in IGP, being Assignor’s
entire interest therein (herein called the “Transferred
Interest”) for consideration in the amount of Fourteen million Dollars
($14,000,000) (the “Purchase Price”), which Purchase Price shall be payable in
cash; and

     

    WHEREAS,
Assignee desires to purchase from Assignor and receive from Assignor the
Transferred Interest.

     

    NOW,
THEREFORE, for and in consideration of (i) payment by Assignee to Assignor of
the Purchase Price, and (ii) other good and valuable consideration paid by
Assignee to Assignor, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

     

    1.           Concurrently
upon execution hereof, Assignee has paid to Assignor the Purchase
Price.

     

    2.           Assignor
hereby transfers, assigns, sells and conveys the Transferred Interest to
Assignee free and clear of all liens, security interests, encumbrances and other
attachments whatsoever.

     

    3.           Assignee
hereby agrees to be bound by the provisions of that certain Agreement of Limited
Partnership of Interstate General Properties Limited Partnership, S.E., dated
July 1, 1985 (the “Partnership
Agreement”) and agrees to assume the obligations of Assignor under the
Partnership Agreement.

     

    4.           Assignor
has full right, title and authority to transfer, assign, sell and convey to
Assignee the Transferred Interest, and no other party has any right, option,
interest or claim to all or any part of the Transferred Interest, whether
subject to contract, option agreement, right of first refusal, reversionary or
future interests, or right of reverter, and there is no lien, security interest
or other matter affecting the Transferred Interest or any part thereof or
attachments or assignments filed or contemplated thereon.

     

    5.           This
Assignment shall be binding upon, and shall inure to the benefit of, the
respective parties hereto and their respective successors and
assigns.

     

    6.           This
Assignment may be executed by one or all of the parties in several counterparts,
including by facsimile, and all such counterparts so executed shall together be
deemed to constitute one final agreement as if signed by all parties, and each
such counterpart shall be deemed to be an original.

     

    7.           Each
party hereto agrees to execute any and all documents and to perform such other
acts as may be necessary or expedient to further the purpose of this Assignment
and the transactions contemplated hereby.

     

    8.           This
Assignment shall be governed by and construed and interpreted in accordance with
the substantive laws of the State of Maryland.

     

    EXECUTED
and DELIVERED as of the day and year first written above.

     

    ASSIGNOR:
IGP GROUP CORP.

     

    ASSIGNEE:
PARTNERS BUSINESS EQUITIES, LLC

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
A-2

    

     

     

    ASSIGNMENT
AND ASSUMPTION OF LIMITED PARTNERSHIP INTEREST

     

    This
Assignment and Assumption of Limited Partnership Interest (this “Assignment”) is made
and entered into as of March 30, 2009, by and between AMERICAN LAND
DEVELOPMENT, a Maryland  corporation, as the assignor (the “Assignor”), and
PARTNERS BUSINESS EQUITIES, LLC as the assignee (the “Assignee”).

     

    WITNESSETH:

     

    WHEREAS,
Assignor is the owner of a ­­­­­­­one hundred
percent of Class B stock (100­­­%) limited partnership interest
in Interstate General Properties Limited Partnership, S.E., a Maryland limited
partnership (the “Partnership”);

     

    WHEREAS,
Assignor desires to convey to Assignee its
­­­­­­­­ percent (­­%) limited
partnership interest in IGP, being Assignor’s entire interest therein (herein
called the “Transferred
Interest”) for consideration in the amount of
­­­­­­­ one Dollars
($1.00­­­­­­­­­­) (the “Purchase
Price”), which Purchase Price shall be payable in cash; and

     

    WHEREAS,
Assignee desires to purchase from Assignor and receive from Assignor the
Transferred Interest.

     

    NOW,
THEREFORE, for and in consideration of (i) payment by Assignee to Assignor of
the Purchase Price (ii) other good and valuable consideration paid by Assignee
to Assignor, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

     

    1.           Concurrently
upon execution hereof, Assignee has paid to Assignor the Purchase
Price.

     

    2.           Assignor
hereby transfers, assigns, sells and conveys the Transferred Interest to
Assignee free and clear of all liens, security interests, encumbrances and other
attachments whatsoever.

     

    3.           Assignee
hereby agrees to be bound by the provisions of that certain Agreement of Limited
Partnership of Interstate General Properties Limited Partnership, S.E., dated
July 1, 1985 (the “Partnership
Agreement”) and agrees to assume the obligations of Assignor under the
Partnership Agreement.

     

    4.           Assignor
has full right, title and authority to transfer, assign, sell and convey to
Assignee the Transferred Interest, and no other party has any right, option,
interest or claim to all or any part of the Transferred Interest, whether
subject to contract, option agreement, right of first refusal, reversionary or
future interests, or right of reverter, and there is no lien, security interest
or other matter affecting the Transferred Interest or any part thereof or
attachments or assignments filed or contemplated thereon.

     

    5.           This
Assignment shall be binding upon, and shall inure to the benefit of, the
respective parties hereto and their respective successors and
assigns.

     

    6.           This
Assignment may be executed by one or all of the parties in several counterparts,
including by facsimile, and all such counterparts so executed shall together be
deemed to constitute one final agreement as if signed by all parties, and each
such counterpart shall be deemed to be an original.

     

    7.           Each
party hereto agrees to execute any and all documents and to perform such other
acts as may be necessary or expedient to further the purpose of this Assignment
and the transactions contemplated hereby.

     

    8.           This
Assignment shall be governed by and construed and interpreted in accordance with
the substantive laws of the State of Maryland.

     

    EXECUTED
and DELIVERED as of the day and year first written above.

     

    ASSIGNOR:
AMERICAN LAND DEVELOPMENT

     

    ASSIGNEE:
PARTNERS BUSINESS EQUITIES, LLC

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

       

      SCHEDULE
1 (C)

       

      EXCLUDED
ASSETS, LIABILITIES AND OTHER

       

      I - All
Assets and Liabilities related to the following entities:

      Brisas
de Parque Escorial, Inc.

      ELI

      El
Monte Properties, S.E.

      Escorial
Office Building I, Inc.

      IGP
Group Corp, (with the exception of those assets of IGP Group Corp which are the
subject of the IGP Purchase described in this Letter and its Schedule A
attached)

      Interstate
Commercial Properties, Inc.

      Land
Development Associates, S.E.

      LDA
Group, LLC

      Torres
del Escorial, Inc.

       

      II -
Furniture, Fixtures and Painting:

      1
- Reception desk (located in “collection office”)

      1
- Reception chair (located in “collection office”)

      1
- Desk with left lateral (located in “collection office”)

      1
- Executive chair (located in “collection office”)

      1
- Secretary desk (located in “collection office”)

      4
- Visitors chairs (located in “collection office”)

      1
- Double module for two employees (located in IGP office)

      1
- Plans cabinet (located in IGP office - Jorge’s area)

      4
- Files cabinet (located in IGP office - Jorge’s area)

      2
- Files cabinet (located in IGP office - Lucy’s area)

      2
- Files cabinet (located in IGP office - Wilma’s area)

      1
- File cabinet (located in IGP - Salich’s area)

      1
- Chair for Salich (located in IGP - Salich’s area)

      1
- Chair for Gilberto (located in IGP office - Gilberto’s office)

      1
- Chair for Jorge (located in IGP office - Jorge’s office)

      1
- Jorge’s computer (located in IGP office)

      1
- Gilberto’s computer (located in IGP office)

      1
- Salich’s computer (located in IGP office)

      1
- Lucy’s computer (located in IGP office)

      1
- Juanita’s computer (located in IGP office)

      5
- Microsoft Office Licenses (located in IGP/IT office)

      1
- Fax Machine (located in IGP/IT office)

      2
- Painting (1966) by Ruben Moreira (located in IGP office)

      2
- Painting (1966) by Rafael Tufiño (located in IGP office)

      1
- Painting (1966) by Augusto Marin (located in IGP office)

      1
- Painting (1966) by Rafael Rios Rey (located in IGP office)

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
1 (C) - Cont.

       

      EXCLUDED
ASSETS, LIABILITIES AND OTHER

       

      II -
Furniture, Fixtures and Painting (Continue):

       

      1
- Parque Escorial portrait (located in IGP office conference room)

      1
- Brisas de Parque Escorial portrait (located in Jorge’s office)

      1
- Torres del Escorial portrait (located in Jorge’s office)

      1
- Yardi Software (located in IGP/IT office)

      1
- Auto CAD License (located in IGP/IT office)

      5
- UPS backup (located in IGP office)

      3
- Printers (located in Lucy, Juanita and Gilberto’s area)

       

      Note:
The following equipment shall be bought by ACPT/IGP Group Corp:

      
        	
                §  

              	
                Server
      unit (for Active Directory and
Data)

              

      

      
        	
                §  

              	
                Sonicwall
      TZ-180 (VPN to St. Charles)

              

      

      
        	
                §  

              	
                Telephone
      System (connected to ACPT)

              

      

      
        	
                §  

              	
                Copier

              

      

      
        	
                §  

              	
                Anti-Virus
      (6)

              

      

       

      All
furniture and fixtures located in the office of Parque Escorial Residential
Owners Association belongs to the Association.

       

      III -
Employment Agreement dated on May 12, 2004, between Interstate General
Properties Limited Partnership, S.E. and Mr. Jorge Garcia
Massuet

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
1 (C-1)

       

      EXCLUDED
LEASES

       

      
        	
                Capital Leases due
      to:

              	
                Concept

              
	
                Popular
      Auto – Account No. 02-500-09653-00-31869

              	
                Jorge Garcia’s
      car

              

      

      

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
1 (J)

       

      MANAGEMENT
AGREEMENTS

       

      
        	
                MANAGEMENT
      AGREEMENTS

              	
                AFFILIATED
      PROPERTY

              
	
                Proviviendas
      I Inc.

              	
                Las
      Americas I Apartments

              
	
                Proviviendas
      II Inc.

              	
                Las
      Americas II Apartments

              
	
                Proviviendas
      III Inc.

              	
                Las
      Lomas Apartments

              
	
                Proviviendas
      IV Inc.

              	
                Monacillos
      Apartments

              
	 
      	 
      
	
                Alturas
      del Senorial Associates Limited Partnership

              	
                Alturas
      del Senorial Apartments

              
	
                Bayamon
      Garden Associates Limited Partnership

              	
                Bayamon
      Garden Apartments

              
	 
      	 
      
	
                Carolina
      Associates Limited Partnership, S.E.

              	
                De
      Diego Apartments

              
	 
      	
                Torre
      de Las Cumbres Apartments

              
	 
      	
                Santa
      Juana Apartments

              
	 
      	
                Monserrate
      Tower II Apartments

              
	 
      	 
      
	
                Colinas
      de San Juan Associates Limited Partnership

              	
                Colinas
      de San Juan Apartments

              
	
                Monserrate
      Associates Limited Partnership

              	
                Monserrate
      Apartments I

              
	
                San
      Anton Associates, S.E.

              	
                San
      Anton Apartments

              
	
                Jardines
      de Caparra Associates Limited Partnership

              	
                Jardines
      de Caparra Apartments

              
	
                Turabo
      Limited Dividend Partnership

              	
                Vistas
      del Turabo Apartments

              
	
                Valle
      del Sol Associates Limited Partnership

              	
                Valle
      del Sol

              

      

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      SCHEDULE
1 (L)

       

      PARTNERSHIP
INTEREST

       

      
        	
                Alturas
      del Senorial Associates Limited Partnership

              
	
                Bayamon
      Garden Associates Limited Partnership

              
	
                Carolina
      Associates Limited Partnership

              
	
                Colinas
      de San Juan Associates Limited Partnership

              
	
                Monserrate
      Associates Limited Partnership

              
	
                San
      Anton Associates, S.E.

              
	
                Jardines
      de Caparra Associates Limited Partnership

              
	
                Turabo
      Limited Dividend Partnership

              
	
                Valle
      del Sol Associates Limited
Partnership

              

      

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      SCHEDULE
1 (O)

       

      PROJECT
PARTNERSHIPS

       

      
        	
                PARTNERSHIP NAMES OF PUERTO
      RICAN ASSETS

              	
                AFFILIATED
      PROPERTY

              

      

      

      IGP -
General Partner Interest

       

      
        	
                Alturas
      del Senorial Associates Limited Partnership

              	
                Alturas
      del Senorial Apartments

                 

              
	
                Bayamon
      Garden Associates Limited Partnership

              	
                Bayamon
      Garden Apartments

              
	
                Carolina
      Associates Limited Partnership

              	
                De
      Diego Apartments

              
	 
      	
                Torre
      de las Cumbres Apartments

              
	 
      	
                Santa
      Juana Apartments

              
	 
      	
                Monserrate
      Tower II Apartments

              
	
                Colinas
      de San Juan Associates Limited Partnership

              	
                Colinas
      De San Juan Apartments

              
	
                Monserrate
      Associates Limited Partnership

              	
                Monserrate
      Apartments I

              
	
                San
      Anton Associates, S.E.

              	
                San
      Anton Apartments

              
	
                Jardines
      de Caparra Associates Limited Partnership

              	
                Jardines
      de Caparra Apartments

              
	
                Turabo
      Limited Dividend Partnership

              	
                Vistas
      del Turabo Apartments

              
	
                Valle
      del Sol Associates Limited Partnership

              	
                Valle
      del Sol

              

      

      

       

      IGP -
Limited Partner Interest

       

      
        	
                Monserrate
      Associates Limited Partnership

              	
                Monserrate
      Apartments I

              
	
                Turabo
      Limited Dividend Partnership

              	
                Vistas
      del Tirabo Apartments

              

      

      

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

       SCHEDULE
1 (P)

       

      SUBJECT
PROPERTIES

       

      
        	
                PARTNERSHIP
      NAMES

              	
                AFFILIATED
      PROPERTY

              

      

       

       

      
        	
                Alturas
      del Senorial Associates Limited Partnership

              	
                Alturas
      del Senorial Apartments

                 

              
	
                Bayamon
      Garden Associates Limited Partnership

              	
                Bayamon
      Garden Apartments

              
	
                Carolina
      Associates Limited Partnership

              	
                De
      Diego Apartments

              
	 
      	
                Torre
      de las Cumbres Apartments

              
	 
      	
                Santa
      Juana Apartments

              
	 
      	
                Monserrate
      Tower II Apartments

              
	
                Colinas
      de San Juan Associates Limited Partnership

              	
                Colinas
      De San Juan Apartments

              
	
                Monserrate
      Associates Limited Partnership

              	
                Monserrate
      Apartments I

              
	
                San
      Anton Associates, S.E.

              	
                San
      Anton Apartments

              
	
                Jardines
      de Caparra Associates Limited Partnership

              	
                Jardines
      de Caparra Apartments

              
	
                Turabo
      Limited Dividend Partnership

              	
                Vistas
      del Turabo Apartments

              
	
                Valle
      del Sol Associates Limited Partnership

              	
                Valle
      del Sol

              

      

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      SCHEDULE
7 (A)

       

      REQUIRED
APPROVALS AND NOTIFICATIONS

       

      
        	
                Required Approvals
      from:

              	
                Concept

              
	
                   HUD
      Caribbean Office

              	
                Change of Management Agent
      (Form 2530)

              
	 
      	 
      
	
                Apartment
      Partnerships Lenders:

              	 
      
	
                   Banco
      Popular de PR – Alturas del Senorial

              	
                Change the GP of the
      Borrower’s GP

              
	
                   Banco
      Popular de PR – Colinas de San Juan

              	
                Change the GP of the
      Borrower’s GP

              
	
                   Banco
      Popular de PR – Jardines de Caparra

              	
                Change the GP of the
      Borrower’s GP

              
	
                   Banco
      Popular de PR – Monserrate Tower I

              	
                Change the GP of the
      Borrower’s GP

              
	
                   Banco
      Popular de PR – San Antón Apts.

              	
                Change the GP of the
      Borrower’s GP

              
	
                   Banco
      Popular de PR – Valle del Sol Apts.

              	
                Change the GP of the
      Borrower’s GP

              
	
                   Citibank,
      NA – Bayamon Garden Apts.

              	
                Change the GP of the
      Borrower’s GP

              
	
                   Citibank,
      NA – Carolina Projects

              	
                Change the GP of the
      Borrower’s GP

              
	 
      	 
      
	
                Required
      Notification:

              	 
      
	
                   To
      all limited partners of the Apartment Partnerships

              	
                Notification indicating the
      change of the general partner of Interest General Properties Limited
      Partnership, S.E.

              

      

      

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      SCHEDULE
9 (A)

       

      OWNERSHIP
OF PROJECT PARTNERSHIPS

       

      
        	
                 

                PARTNERSHIP
      NAMES

              	
                CURRENT

                OWNERSHIP
      PERCENTAGE

              

      

       

       

      
        	
                Alturas
      del Senorial Associates Limited Partnership

              	
                50%

              
	
                Bayamon
      Garden Associates Limited Partnership

              	
                1%

              
	
                Carolina
      Associates Limited Partnership

              	
                50%

              
	
                Colinas
      de San Juan Associates Limited Partnership

              	
                50%

              
	
                Monserrate
      Associates Limited Partnership

              	
                52.5%

              
	
                San
      Anton Associates, S.E.

              	
                49.5%

              
	
                Jardines
      de Caparra Associates Limited Partnership

              	
                50%

              
	
                Turabo
      Limited Dividend Partnership

              	
                1%

              
	
                Valle
      del Sol Associates Limited Partnership

              	
                1%

              

      

      

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
9 (C)(i)

       

      LITIGATION
AND CLAIMS re Interstate General Properties Limited Partnership

       

      
        
          	
                  Litigations:

                  Litigation at the date of
      this Definitive Agreement:

                  Case:

                
	
                  Litigations
      in our files at the Date of this Definitive Agreement:

                    

                   Cases:

                  (1) Civil
      No. 421353-30 – Iris Aviles Rivera vs Interstate General Properties and
      Valle del Sol Associates

                   

                  Date
      of incident: May 12, 2005

                   

                  Claim:
      Car stolen from parking

                   

                  Amount
      Claimed: $39,000

                   

                  (2) Civil
      No. KDP 08-0690 – Jose Mojica and Mildred J. Diaz in representation of
      minor Ilianaette Mojica vs Interstate General Properties and Carolina
      Associates - Torre de las Cumbres Apts.

                   

                  Date
      of incident: July 15, 2006

                   

                  Claim:
      Fallen from a swing in the play ground area

                   

                  Amount
      Claimed: $150,000

                   

                  (3) Civil
      No. KDP 08-0384 – Angelica Perez Diaz vs Interstate General Properties and
      Alturas del Señorial Associates.

                   

                  Date
      of incident: April 13, 2007

                   

                  Claim:
      Fallen when exiting the elevator

                   

                  Amount
      Claimed: $690,000

                   

                  (4) Civil
      No. KDP 08-0100 – Xiomara Walter Rivera vs Interstate General Properties
      and Carolina Associates - Torre de las Cumbres Apts.

                   

                  Date
      of incident: June 17, 2007

                   

                  Claim:
      Fallen at project stairs

                   

                  Amount
      Claimed: $150,000

                   

                  (5) Civil
      No. KDP 08-0241 – Maria Figueroa Ocasio vs Interstate General Properties
      and Carolina Associates - Torre de las Cumbres Apts.

                   

                  Date
      of incident: March 7, 2007

                   

                  Claim:
      Beaten by elevator door

                   

                  Amount
      Claimed: $350,000

                   

                  (6) Civil
      No. KDP 07-0440 – Cristina Gomez Maldonado vs Interstate General
      Properties and Valle del Sol Associates

                   

                  Date
      of incident: May 12, 2006

                   

                  Claim:
      Fallen at project stairs

                   

                  Amount
      Claimed: $130,000

                  \

                  These
      litigations are covered by the Insurance Company under the existing
      insurance coverage and are managed by the Insurance Company’s
      attorneys

                   

                

        

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      SCHEDULE
9 (C)(ii)

       

      FINANCIAL
STATEMENTS OF Interstate General Properties Limited Partnership

       

      

       

      See
Interim Financial Statements As of December 31, 2008

       

      Attached

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
10 (A)

       

      CONDEMNATION
AND ACTIONS

       

      

       

      There
are no Condemnation and Actions at the Date of this Definitive
Agreement

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
10 (B)

       

      TITLE
ENCUMBRANCE DEFAULT

       

      

       

      There
are no Title Encumbrance Default at the Date of this Definitive
Agreement

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
10 (C)

       

      VIOLATION
NOTICES

       

      

       

      There
are no Violation Notices at the Date of this Definitive Agreement

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
10 (E)

       

      BROKERS

       

      

       

      There
are no Brokers in this Transaction

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
10 (F)

       

      ENVIRONMENTAL
REPORTS

       

      

       

      There
are no Environment Reports at the Date of this Definitive Agreement

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
10 (J)

       

      LITIGATION
re SUBJECT PROPERTIES

       

      

       

      Litigations
in our files at the Date of this Definitive Agreement:

       

         Cases:

       

      (7) Civil
No. 421353-30 – Iris Aviles Rivera vs Interstate General Properties and Valle
del Sol Associates

       

      Date
of incident: May 12, 2005

       

      Claim:
Car stolen from parking

       

      Amount
Claimed: $39,000

       

      (8) Civil
No. KDP 08-0690 – Jose Mojica and Mildred J. Diaz in representation of minor
Ilianaette Mojica vs Interstate General Properties and Carolina Associates -
Torre de las Cumbres Apts.

       

      Date
of incident: July 15, 2006

       

      Claim:
Fallen from a swing in the play ground area

       

      Amount
Claimed: $150,000

       

      (9) Civil
No. KDP 08-0384 – Angelica Perez Diaz vs Interstate General Properties and
Alturas del Señorial Associates.

       

      Date
of incident: April 13, 2007

       

      Claim:
Fallen when exiting the elevator

       

      Amount
Claimed: $690,000

       

      (10) Civil
No. KDP 08-0100 – Xiomara Walter Rivera vs Interstate General Properties and
Carolina Associates - Torre de las Cumbres Apts.

       

      Date
of incident: June 17, 2007

       

      Claim:
Fallen at project stairs

       

      Amount
Claimed: $150,000

       

      (11) Civil
No. KDP 08-0241 – Maria Figueroa Ocasio vs Interstate General Properties and
Carolina Associates - Torre de las Cumbres Apts.

       

      Date
of incident: March 7, 2007

       

      Claim:
Beaten by elevator door

       

      Amount
Claimed: $350,000

       

      (12) Civil
No. KDP 07-0440 – Cristina Gomez Maldonado vs Interstate General Properties and
Valle del Sol Associates

       

      Date
of incident: May 12, 2006

       

      Claim:
Fallen at project stairs

       

      Amount
Claimed: $130,000

       

      These
litigations are covered by the Insurance Company under the existing insurance
coverage and are managed by the Insurance Company’s attorneys

       

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

      

       

      SCHEDULE
15

       

      LIST
OF EMPLOYEES TO BE RETAINED BY IGP GROUP CORP.

       

      Jorge
Garcia Massuet - Senior Vice President

      Gilberto
E. Zayas - Controller and Assistant Vice President

      Francisco
Salich - Project Engineer

      Luz
Lopez - Executive Secretary

      Juana
Izquierdo - Accounts Payable/Disbursement Coordinator

      Henry
Vargas - Parque Escorial Administrator

      Karina
Mercado Soto - Office Clerk

      Jose
L. Florentino - Administrative Assistant

      Pedro
Medina - General Worker

      Pedro
Rondon - General Worker

      Juan
Santana - General Worker

      Carlos
H. Torres – Commercial Building Maintenance Supervisor

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